1. Annual Report and Accounts 2010Helping business...United Business Media LimitedUnited Business Media Limited Annual Report and Accounts 2010www.ubm.com...to do businessDesigned and produced by Radley Yeldar www.ry.com

2. Financial CalendarCautionary Statement Record date for 2010 second interim dividend 15 April This Annual Report has been prepared for, and only for, the members of Annual General Meeting10 MayUnited Business Media Limited (the Company), as a body, and no other persons. The Company, its directors, employees, agents or advisers do not accept or Second interim dividend payment date19 May assume responsibility to any other person to whom this document is shown or Announcement of interim results 29 July into whose hands it may come and any such responsibility or liability is expressly First Interim dividend for 2011 payment date OctoberWe help businesses do business. disclaimed. By their nature, the statements concerning the risks and uncertainties facing the Group in this Annual Report involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated.We enable professional people around the world toThe forward-looking statements reflect knowledge and information available at the date of preparation of this Annual Report and the Company undertakesconnectand engage with each other, with the markets no obligation to update these forward-looking statements. Nothing in this Annual Report should be construed as a profit forecast.theyserve and with the information they need to succeed.We do this by providing them with access both totheiraudiences and to insightful, business-criticalinformationby whatever means works best at live events,through digital media or in publications.Our expert staff are deeply embedded within eachofthemany professional communities we serve. Workingwithin a culture of creativity and collaboration, we shareknowledge, know-how and ideas right across UBMsbusinessesand around the globe.United Business Media Annual Report and Accounts 2010United Business Media Annual Report and Accounts 2010153 3. Financial highlightsContentsRevenue m4 Chairmans StatementSection 1: Section 1: 2010 Review887.0 847.6 889.2 6 Chief Executive Ofcers Statement+4.9% 739.1801.62010 Review 814UBM StrategySegmental Performance14 Events18 Targeting, Distribution and Monitoring22 Data Services0607 08 09 10 26 Online Marketing Services30 Print MagazinesAdjusted operating prot* m32Financial Review166.1 173.5 171.2 171.8 40Risks and Uncertainties+0.4% 149.04451Corporate ResponsibilityExplanation of UBMs business measuresSection 2:52Board of directors Section 2: Governance54Directors remuneration report0607 08 09 10 Governance64Corporate governance statement69Independent auditors report to the membersAdjusted operating margin* %of United Business Media Limited20.770Report of the directors20.2 20.2-0.9%pt19.619.30607 08 09 10Adjusted diluted EPS* pence55.8 54.2Section 3:72Consolidated income statement-7.4%52.350.2 Section 3: Financial statements43.873Consolidated statement of comprehensive incomeFinancial 74Consolidated statement of nancial position75Consolidated statement of changes in equityStatements76Consolidated statement of cash ows77Notes to the consolidated nancial statements0607 08 09 10140 Five year nancial summary141 Independent auditors report to the membersDividend per share penceof United Business Media Limited142 Parent company prot and loss account23.8 24.2 25.0+3.3% 18.021.6143144151Parent company balance sheetNotes to the parent company nancial statementsShareholder information153 Financial calendar 2010153 Cautionary statement0607 08 09 10Cash generated from operations m154.7+8.4% 92.6138.7 136.1 142.70607 08 09 10* See explanation of UBMs business measures on page 51. United Business Media Annual Report and Accounts 2010 1 4. Section 1: 2010 ReviewAt a glanceUBM is a global live media and B2B communications,marketing service and data provider. We seek to helpcompaniesmake connections, communicate theirpropositionand do business effectively.What do we do? What are our key strengths?Events A market leader in hosting face-to-faceWe organise tradeshows and other live in person events which enable communities to do business interactions increasingly important in the UBM is the worlds second largest pure play event organiser. Revenues are generated by digitalageexhibitors purchasing vendor space, through event sponsorship or, for certain events, throughPositioned to capitalise on growth in theattendee entrance fees. digitalage with a range of quality multi-media See page 14 for further details. products and services Strong presence in high growth and emerging economies broad international infrastructureTargeting, Distribution and Monitoring (TD&M)Diverse portfolio of products and services withcross integrationOur PR Newswire business provides communications products and services to professionalsworking in marketing, public relations, corporate communications or investor relations roles.Committed, skilled people working inAswellasdistributing our clients messages and information, PR Newswire also helps identify aninnovative and collaborative culturetarget audiences and monitors how effectively the message has been communicated. Brand strength within attractive businesscommunities See page 18 for further details. Distributed customer base no single customer generates more than 1% of UBMs revenuesData Services1 (DS)Highly cash generativeWe provide data and information products which support professionals in their decision makingStrong balance sheetand day-to-day activities. We look to create unique, market-leading data sets that can be utilisedbymultiple end users in niche sectors. Revenues are generated through annual subscriptions andlisting fees; consulting, content and training services; and advertising or marketing support.Contribution to 2010 revenue % See page 22 for further details. 1. Events34.82. TD&M20.4Online Marketing Services1 (Online) 3. DS20.84. Online 7.8We execute campaigns on behalf of clients looking to enhance their branding, customer awareness,5. Print 16.2reach and engagement or to generate sales leads. We offer our clients measurable return oninvestment and high audience engagement. Revenues are generated through advertising (such as 1banner ads), lead generation services and, increasingly, virtual event organisation and building/managing community websites on behalf of clients. See page 26 for further details. 5Print Magazines (Print) 4We also publish 123 print titles which provide clients with a more traditional advertising platform.The majority of titles are controlled circulation magazines which continue to play an importantrole in serving specific professional and commercial communities. We have seen growing cross-over 2with online marketing services as clients seek an integrated marketing approach or as publicationsmigrate online. We are managing the print business towards a focused portfolio of leading titles.3 See page 30 for further details.1 Previously Data Services and Online Marketing Services were reported as a combined segment.2 United Business Media Annual Report and Accounts 2010 5. We transfer the skills, knowledge and experience we gain in serving one community across and between markets, transferring best practice and innovation from one community to another, from one geography to another andfrom one product type to another.Where do we operate? Who are our customers? Section 1: 2010 ReviewWe have a well balanced portfolio with exposure to both mature markets and higherUBM services a variety of specialist businessgrowth Emerging Markets.* Over the last five years we have increased our exposurecommunities. It is through intimate knowledgetofast growth Emerging Markets, since 2005 our revenues from China and otherofthese chosen communities that we canEmerging Markets have grown 110% to 166m. serviceour customers most effectively. Revenue by geographies 20052010 m 2010 Revenue by community %4141. Technology & IP 22.4 2. News Distribution 20.4 Section 2: Governance 2005 2010Total: 634m 889m 3. Health20.22904. Lifestyle7.4 5. Trade & Transport7.0 6. Ingredients6.2 7. Fashion5.6 146 149129 Emerging Markets* 8. Built Environment5.5 112 106 9. Paper2.048 5410. Other 3.3 3134 10N. America Europe UK China* Other EmergingRoW Markets*10 19 Section 3: Financial statements * Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia, Philippines, Mexico and UAE. 876 2OttawaChicagoLondonAmsterdam Manhasset Beijing GuangzhouShanghai5ClevelandBrussels NewParis York Tokyo San FranciscoManilaAlbuquerqueLos Angeles Hong Kong4Mexico City MumbaiSingapore 3 Sydney So Paulo* Denotes offices with more than 50 employees. United Business Media Annual Report and Accounts 2010 3 6. Section 1: 2010 Review2010 ReviewChairmans StatementOur Aim: To create long term value whilegeneratingattractivereturnsforshareholders. In 2010 our revenues have been restored to 2008UBMs strategic progress levels, despite the 72m contraction in print andAs David Levin describes in more detail in his review, arelatively mixed global recovery. In 2010 UBMour strategy of enhancing our range of quality revenue grew by 5% to 889.2m. Statutory IFRSproducts and services while expanding our presence operating profit, after exceptional items, increasedin high growth Emerging Markets and attractive to132.3m (2009: 25.8m loss) and basic EPS wasbusiness communities, remains unchanged. Through 37.3p (2009: 30.9p). 2010 is both about operationalboth organic initiatives and targeted acquisitions we progress and building and investing in UBM toare creating a portfolio which will benefit from prosper in the future.structural growth going forward. Initiatives to strengthen UBMs foundations Our aimhaveincluded: launching the GEM1 best practice Revenues initiative during the year; investing in our technology, Our main aim is to create long term value and Restored to 2008 levels generate attractive returns for shareholders.new product development and sales force of PR despite print contraction. Thedividend graph (on page 5) shows our strongNewswire, our Targeting, Distribution and track record of dividend growth for shareholders.Monitoring (TD&M) business; strengthening For2010 the Board has announced a second interimDataServices (DS) through new products, core 889.2m dividend of 19.0p (2009: 18.2p) to bring the total dividend for 2010 to 25.0p (2009: 24.2p)database development and geographic expansion;and,enhancing our Online Marketing Services representing a 3.3% increase.(Online), particularly in virtual events. Meanwhile The Total Shareholder Return graph shows weour strategy of managing the contraction of the print outperformed the sector during 2010 although our portfolio continues. performance dipped during 2009. During the year we acquired full or majorityinterests in 22 businesses. The most notable of theseJohn Bottswas Canon Communications, which provides UBMChairmanwith market leading media brands serving the medicaldevice design and advanced manufacturing industry.Canon bringsgeographically diverse revenues fromacomplementary electronics community and itseventsportfolio also lends itself well to geo-cloning.This acquisition and eight others have increased ourexposure to the attractive events industry whichnow accounts for 54.4% of UBMs adjusted profit2(2009: 50.9%) while the remaining 13 acquisitionshave further strengthened the offerings andgeographic reach of our TD&M, DS and Onlinebusinesses. It is worth noting that in total, EmergingMarkets3 now account for 18.7% of UBMs revenuesand 28.6% of adjusted profits (2009: 16.7% and23.8% respectively).1 Global Events Momentum.2 See explanations of UBMs business measures on pages 51.3 Emerging Markets constituents are the non-G10 countries most notablyfor UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia,Philippines, Mexico and UAE.4 United Business Media Annual Report and Accounts 2010 7. Dividend penceTotal shareholder return 23.8 24.2 25.0 150UBMFTSE All Share Media21.6 18.0 12515.0 12.0 100 9.07550 03 04 05 06 07 08 09 1001/01/06 01/01/07 01/01/08 01/01/0901/01/10 01/01/11Our peopleCorporate responsibility Section 1: 2010 ReviewDividendFull year dividend increasedOur people are UBMs key asset and, as you canUBMs commitment to environmental and social3.3%.seeon page 13, motivating and supporting themresponsibility continues to expand and is a key priority.isamajor priority for delivering on our strategy. On pages 47 to 50 we detail our continued progress in25.0pDuring 2010 we have continued to make progressin developing our management talent includingmanaging our environmental impact andsupportingthe communities in which we work. Twosuccessesre-scoping and expanding the Business Leaders stand out: first, the Non Government OrganisationProgramme (BLP) and the European Leadership (NGO) Event programme for the second yearEmerging Markets3 Development Programme (E-LDP) (for furtherrunning our staff volunteered significant time toNow accounts for a signicant details see page 45). To reflect the global natureorganising our second event in So Paulo which hadproportion of UBM revenues.ofUBM, programme modules have been hosted in more than 500 exhibiting NGOs (2009: 270) andthe UK, US and India. 58 people have now graduatedalmost 13,000 visitors (2009: 2,500). NGO Brazilfrom the programmes, nine of whom have since made 2011 is in hand and we are soon launching ourfirst18.7% Section 2: Governancecross-divisional transfers. We have also introduced Responsible Business conference in the UK. Secondly,aformal mentoring programme of rising managers we are implementing an internal global environmentalbyboard members and senior executives, which reporting system for 156 office locations in 35facilitates a shared perspective on leadership talent countries which significantly improvesour abilityacross UBM and enhances engagement of our tomonitor and manage our carbon footprint.non-executive directors. In short, UBM has made good strategic progress Communication within UBM has continued to in2010. The appointment of executives to crossdevelop during 2010. Usage of the Wiki, our online divisional roles is giving us organisational cohesionUBM community, has grown 28% and is helping and the growing cadre of graduates from ourourcross-UBM relationships to grow stronger and management training programmes is playing anmultiply with the transfer of knowledge and best increasingly significant part in directing ourpractice. Our UBM-wide employee engagement businesses. We are investing significantly in organicsurvey highlighted our meritocratic/innovative work Section 3: Financial statements initiatives as well as in targeted acquisitions.environment and commitment to social responsibility Thisinvestment is building our business in Emergingas areas of strength. (See page 45 for more detail.) Markets as well as strengthening our existing core operations, increasing our exposure to attractiveThe Boardbusiness communities and improving our abilityOur Board composition provides UBM with atocapitalise on opportunities created by the digitalbroadrange of sector, geographical and management revolution.experience. This breadth of knowledge is particularly Finally, the Board would like to thank everyoneappropriate given the global nature of UBM, its range at UBM for their vision and efforts during 2010.of products and services and the emerging digitalWehave now largely completed the process totrends. There is a high degree of engagement with the reshape UBM and we have established strongbusiness and in addition to the usual presentationsfoundations on which to build our businesssfrom divisional CEOs the Board also visited two of futuregrowth.our largest exhibitions in Brazil and India and hostedthe offsite strategy meeting in India, reflecting thegrowing importance of Emerging Markets for UBM.(For more details on governance see pages 64 to 68.)John BottsChairmanUnited Business Media Limited United Business Media Annual Report and Accounts 2010 5 8. Section 1: 2010 ReviewOperating and Financial ReviewChief Executive Officers statement2010 has been a year of both operationalandstrategicprogressforUBM. 2010 resultscorporate spending while the operational performance of the business has continued to develop. Revenues from continuing operations rose 4.9% toWe held over 300 events in 21 countries during 889.2m (2009: 847.6m) and adjusted operatingtheyear and launched four new geo-cloned events profit* from continuing operations was broadlyinIndia, China, Abu Dhabi and the US. We have Revenuesflatat171.8m (2009: 171.2m) reflecting higher alsocontinued to enhance best practice across the From continuing operationsinvestment in new product development, sales andentire event portfolio through our GEM initiative rose 4.9%.IT. The adjusted operating margin* was 19.3% in launched in June 2010. The other important driver 2010 compared to 20.2% in 2009. Adjusted profit for events has been the continuation of our successful before tax* was 156.4m (2009: 165.1m). Adjusted acquisition strategy and we, since year end, 889.2m earnings per share* (EPS) were 51.0p, down from 55.1p in 2009 reflecting higher interest and tax. announced the acquisition of two leading events in India which will further strengthen our position as one of the leading commercial organisers in that 2010 achievements country. During 2010 UBM bought outright or Our consistent strategy of developing productsacquired major positions in nine event related inwinning formats, targeting attractive business businesses. The most notable of these was Canon communities in growing geographies, providesCommunications, acquired for 182.9m, which uswith a good platform for growth. isperforming well and will deliver on plannedWe are encouraged by the progress of our Events geo-cloning opportunities, most notably in Brazil and business which, notwithstanding the anticipated India. Other events related acquisitions have provided lower even year biennial revenue contribution, showed us with further exposure to the attractive Emerging 7.8% revenue growth and a solid margin performance. Markets** (which accounted for 38.7% of 2010 The strength of our events brands has enabled ustotalevents revenues), strengthened our offering tocapitalise on the gradually improving trends intoanexisting community or provided access to aDavid LevinChief Executive Officer community we think has natural growth potential orgeo-cloning opportunities.PR Newswire, our Targeting, Distribution and Monitoring (TD&M) business revenues grew by 12.3% during 2010. Our US wire business saw resilient revenue growth of 2.9% with continued solidmargins, while our strategy of diversifying the revenues base is delivering strong growth in non-wire US products (including products such as multimedia news releases, where we believe we are the market leader in the US, and filing services) which grew by21.4% and in our international business which expanded by 18.8%. During the year we successfully migrated the businesses 600+ servers to an outsourced provider, substantially enhancing the robustness of the platform and providing a secure foundation for future development. * See explanation of UBMs business measures on page 51. ***Emerging Markets constituents are the non-G10 countries most notablyfor UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia,Philippines, Mexico and UAE.6 United Business Media Annual Report and Accounts 2010 9. 2010 revenue by segment m 20092010 Events288 310 TD&M161 181 DS179 185 Online 5469 Print 166 144 Total 848 8890910 This investment in IT infrastructure, the development Print Magazines (Print) revenues fell 13.1%Section 1: 2010 ReviewAdjusted operating prot* of new products and services and the enhancementduring the year and now accounts for only 16.2%From continuing operationswas broadly at despiteofthe sales teams, coupled with product mix dilution,ofUBMs total revenues. In line with our establishedhigher levels of investment. resulted in a 4.6 percentage point decline in the strategy we have continued to manage our print TD&M margin. We also acquired five businesses magazine portfolio towards a smaller, more profitable171.8mwhich enhance the geographic reach of our PR Newswire business. and commercially sustainable set of titles, as evidenced by a 1.5 percent point increase in theData Services (DS) has seen improving topmargin in 2010. Adjusted operating profit* for linetrends with revenues up 3.1%, largely driven Printrose to 10.0m (2009: 8.9m). As we further bygoodperformance in products and services forrationalise our portfolio of titles we expect that in thetechnology community. We are making goodtime our continuing print titles will form part of an progress in migrating our print data products to theintegrated Online and Print Marketing Services online environment with online data and servicesoffering and growth will be driven by our ability to revenues now accounting for 66.7% of total DS engage with an audience through a variety of channelsSection 2: Governance revenues (2009: 61.4%). We are investing in the including, more recently, mobile. It is worth noting development of newproducts such as: tradingthat the combined revenues of Online and Print platforms for ourshipping database business, declined 2.9% in 2010 while the combined margin expanding our aviation cargo database; a newimproved to 5.3% (2009: 4.3%). analytics tool for the paper industry as well as Total adjusted operating profits* for UBM expanding our offering geographically, particularly inwerebroadly flat at 171.8m this was owing to Asia. This investment in DS combined with the shift theoperational investments in TD&M, DS and in product mix resulted in the overall DS marginOnline plus a small increase in net corporate costs. declining from 20.8% to 18.5%. We also made Grosscorporate costs remained constant at 15.6m 9.0mof DS related acquisitions to bolster specific(2009: 15.5m) but were offset by lower sundry opportunities in the import/export community, corporate income of 6.4m (2009: 7.9m). In 2011 maritime industry, UK Built Environment and we expect the gross corporate costs to increase slightlySection 3: Financial statements Chinese paper industry. while the level of sundry corporate income continuesThe fastest revenue growth has been in our to decline. Online Marketing Services (Online) Finally, given the strategic emphasis we are segment where revenues rose 28.6%, principallyplacing on growth markets it is worth noting that dueto increased revenues from the technology 18.7% of 2010 total revenues are now generated inAdjusted prot before tax* community where the marketing budgetEmerging Markets**. During the year these revenuesWas down 5.3%. environment is improving and we are offering an grew 17.6% with an increasing presence in both India enhanced product range with improved client and South America. In our largest Emerging Market engagement. Our most significant investment has of China (which now accounts for 12.6% of total been in virtual events which, rather than cannibalising revenues) weappointed Philip Chapnick, formerly156.4mthe live events, are proving a complementary revenue stream that helps strengthen the associated brands. CEO ofourThink Services business, as Group Chief Representative in Beijing to manage and coordinate During 2010 we ran 103 virtual events worldwide,our overall Chinese relationships. investing operating expenditure in developing thisAdjusted EPS* area. Enhancements in our key online brands, such asWas down 7.4%. Information Week, coupled with product innovations are also having positive revenue effects and receiving recognition through industry awards.51.0pDavid Levin Chief Executive Ofcer United Business Media LimitedUnited Business Media Annual Report and Accounts 2010 7 10. Section 1: 2010 ReviewOperating and Financial ReviewUBM StrategyOur strategic thinking Our business model Business model UBM seeks to help companies make connections, communicate their proposition and do business effectively.We transfer the skills, knowledge and experienceCommunity we gain in serving one community across and understanding between markets, transferring best practice and innovation from one community to another, from one geography to another and from one product type to another. From one company to many, we enable the flow of information, directing messages and GeographicQuality assessing their impact on specific audiences.diversityoffering Community understanding As the graph on page 3 highlights we operate inavariety of specialist communities which have attractive growth characteristics. We seek to know whos who in the community, have relationships with key participants, create rich databases of relevance UBMs marketplace tothose professionals, understand the key themes affecting their community, their information needs The B2B marketplace which UBM operates in is and how they operate. It is through this thoroughextremely fragmented, reflecting the number and understanding that we are able to service them variety of communities and geographies we serve mosteffectively.andthediversity of products and services we offer.Estimates of its size and growth prospects vary Quality offering considerably. Outsell estimates that the informationindustries marketplace (which includes HR By having a broad range of quality services andinformation, Search, Aggregation & Syndication, products we can create an offering specificallyMarket Research, B2B Trade publishing and designed to meet the needs of the community beingdirectories) is worth $366.3bn and is expected to served. As described in more detail below, we thinkdemonstrate a compounded annual growth rate the media industry is shifting to a more integrated(CAGR) of 2.3% between 2010 and 2013. approach and therefore having a full range ofPricewaterhouseCoopers meanwhile estimate products and services is increasingly important. themore narrowly defined Business to Businessmarket (which exclude live events, but include Geographic diversity business information, trade magazines and directoryadvertising) at $141.3bn for 2010 and expect The transformation to a global economy coupledCAGRof 1.0% between 2010 and 2014. with the shift towards digital media leads us to believe There are two key influences on the long term that diverse geographic experience and infrastructuredevelopment of the marketplace: the continuing is advantageous. It also provides us with access to highimpact of the digital revolution and the shift towards growth opportunities in Emerging Markets andthe Emerging Markets. quality revenues from more mature markets. Worldwide Enterprise IT spend is forecast tosurpass $2.4 trillion in 2010, a 4.1% increase from2009, with the communications, media and servicesindustry expected to grow at a 4.6% CAGR between8 United Business Media Annual Report and Accounts 2010 11. Segmental revenues 2005 vs 2010 m Geographic revenues 2005 vs 2010 m 20052010 20052010Events167 310N. America 290414TD&M104 181Europe 106146DS 73 185UK 149129Online 3069Emerging Markets79166Print 260 144RoW 10 34Total 634 88905 10 Total63488905 1020092014 (Source: Gartner Inc.). It is no surpriseOur strategy is to take a leading role in the Live Media Section 1: 2010 Reviewtherefore that we are seeing a trend towards a moreand B2B Communications markets, in chosen More information on segmentalintegrated marketing approach with digital at its core.communities, by building businesses which are well marketplaces see pages 14 to 31.Perhaps stimulated by the global recession, we are positioned to prosper in the digital age and have theseeing a greater degree of client focus on efficiencypotential for global growth. The graphs above showand profitability; for example our customers wanthow, over the last five years, we have re-shaped thetobe able to measure the impact of their marketingportfolio and geographic exposure of UBM.campaigns, or our audiences, who have access to aWhilst our strategy remains consistent, some ofproliferation of content, are now looking for qualityyou may note that weve changed how we articulate itand accessibility. The distribution channels are and are adopting a more granular approach. We havechanging, with mobile apps becoming increasingly identified five priorities for delivering on our strategy:important, and we are seeing a trend from solelytraditional media platforms to a combination 1.Organic revenue growthwhichoffer a high level of engagement and are 2.Growth through acquisition Section 2: Governancemoreembedded in the professionals work flow. 3.People and culture The importance of relationship marketing 4.Responsible businessremains and we believe that face-to-face interactionswill continue to be a crucial element of the B2B 5.Appropriate processesindustry. One could even argue that in an increasinglyenvironmentally conscious world it is appealingWe have made good strategic progress in 2010 toattend a single event and meet a multitudeevidenced through the financial key performanceofcontacts, rather than travelling to meet each indicators:contact individually.Year on The other factor influencing the long term year KPI 20092010changedevelopment of the marketplace is themacroeconomic environment and the shift towardsRevenue (m) 847.6889.2+4.9% Adjusted operating Section 3: Financial statementsthe Emerging Markets. In the short term the industryas a whole should benefit from the global recovery profit* (m) 171.2171.8+0.4% with improvements in the corporate spendingAdjusted operatingenvironment and in the proportion of spend allocated margin* 20.2% 19.3% 0.9%to marketing. The speed of growth will vary, with theAdjusted EPS* (p) 55.151.07.4%expectation that Emerging Markets will deliver the Cash fromInformation industrieshighest levels of growth.operations (m)142.7 154.7 +8.4%Outsell estimate the The digitalisation trends and Emerging MarketsROACE* 15.8%14.7% 1.1%ptmarketplace is worthshift are driving development both of new mediaNet debt/products and services, and of new business models to Adjusted EBITDA*1.2x 2.6xsupport them, across all sectors and in all geographies.$336.3bnWe view UBMs diversity as a distinct advantage our varied portfolio and breadth of geographic As you can see the Board have increased the number of financial KPIs they formally review to measure theexposure enables us to be agile and capitalise onhealth and progress of the business. They also reviewWorldwide IT spendchanges in our marketplace.performance indicators which are more operationalGartner Inc estimate inin nature (as detailed over the next two pages).2010 IT Enterprise spendwill surpassOur strategyPositioning UBM to benefit from these macro,$2.4trlongterm shifts in the industry is our primarystrategic objective. * See explanations of UBMs business measures on page 51.United Business Media Annual Report and Accounts 20109 12. Section 1: 2010 Review Operating and Financial Review UBM Strategy continued 1. Organic revenue growth: We continually look toorganicallystrengthenthe products and services withinourportfolio. Below we detail initiatives toimprovetheperformance of each of the segments.Targeting, DistributionEventsandMonitoringWe continue to develop the Events portfolio by launching new events, enlarging the size We continue to invest and innovate tooftheevents, increasing the yields and sharing best practice knowledge. further expand PRNs offering beyondtheUS wire product.Revenue m Operational Performance Indicators Revenue m310 Year on 181292 288year 154 161 2452009 2010 change141 220130 167 Sqm of Annual Events895.3k 925.2k 3.3% 104 Sqm of Biennial Events* 87.2k 56.6k 35.1% Attendees to Annual Events 1.21m 1.22m1.1% Attendees to Biennial Events* 109.4k78.2k 28.5%050607 080910* Biennial odd year events are larger.05 0607 08 0910We also grow in Emerging Markets (EM) through the launch of new eventsunderbrandswhich have been successful elsewhere (Geo-cloning.)Proportion of EM revenue % Operational Performance Indicators Mix type of revenues %Year on year20092010 200920102010 change2009EM34.338.7 Revenue of new launch events (m) 3.64.0 mm %Non EM65.761.3 No. of new geo-cloned events 74US wire73.375.42.9Non US wire43.452.7 21.4PR NewswireEurope 12.213.5 10.7Other32.539.6 21.82010 Geo-cloned events0910 For more detail about the events business andFor more detail about the TD&M business and itsperformance in 2010 see pages 14-17. itsperformance in 2010 see pages 18-21.Internal infrastructure In China, which now accounts for 12.6% oftotal revenues, given its strategic focus, we haveWe continue to build our internal infrastructurecreated a managerial role in Beijing to managetobettersupport the businesses. and coordinate our overall Chinese relationshipsandleverage the capabilities offered by the entireUBM portfolio of products and services.10 United Business Media Annual Report and Accounts 2010 13. Contribution to 2010 revenue %1. Events 34.812. TD&M 20.43. DS 20.84. Online7.855. Print16.2 4 2 3Section 1: 2010 ReviewData ServicesOnline Marketing Services Print MagazinesWith content now becoming more available The rapidity of technological advance Although print publishing in general isthrough the internet it is important wemeans that we must continually innovate indecline we believe there is a role forinvest and innovate to deepen our data setstoensure we are best serving our clients.leading community titles. We continueand enhance the delivery channels to our Weseek to capitalise on the trend towardstomanage the print portfolio to focuscustomers. We are also looking to improvean integrated marketing approach throughonleading titles. Over time it will makethe quality of revenues (increasing thedeveloping our high engagement offering sense to combine our print segment withproportion of digital revenues) and diversifyand growing the number of quality virtual onlinefor an integrated marketing servicesthe delivery channels (the mix between events increasing proportion of Leadproduct offering.Section 2: Governancesubscription, consulting, content and generation and other revenues.training and advertising revenues).Revenue m Revenue mRevenue m17918569260 256168 231 5754 216 143 4342 166144 9173 3005 06 0708 09 10 0506070809 1005 06 070809 10Section 3: Financial statementsOperational Performance Indicators Operational Performance IndicatorsNumber of titlesYear onYear on182 year year155 2009 2010change20092010 change 140123*Digital revenues (m) 109.9123.2+12.1% Lead generation & other109Digital & services revenues (m)16.421.832.9%proportion61.4% 66.7% +5.3%ptProportion of Lead generation and other 30.5% 31.5% 1.0%ptProportion of revenues No. of virtual events38103 171.1%Subscription64.3% 63.4% 0.9%pt06 070809 10Consulting, content* Reflects acquisition of 26 titles.&training23.5% 27.0% +3.5%ptAdvertising 12.2%9.6% 2.6%ptFor more detail about the DS business and For more detail about the Online business andFor more detail about the Print business anditsperformance in 2010 see pages 22-25.its performance in 2010 see pages 26-29. itsperformance in 2010 see pages 30-31.The UBM Wiki online community, allowsWiki usageemployees from all around the globe and Wiki usage continues todifferent businesses to share ideas, information increase number of pagesand best practice. viewed in 2010 +28% United Business Media Annual Report and Accounts 2010 11 14. Section 1: 2010 Review Operating and Financial Review UBM Strategy continued 2. Growth through acquisition We invest in strategic acquisitions in order tostrengthenourexisting portfolio or provide exposuretomarketswefeel are attractive.Target selectionStrict nancial disciplineWe select targets which are complementary to ourA target acquisition also has to satisfy financial criteriaexisting business in terms of geography, segmentor with projected post tax ROI* exceeding 8% withincommunity. Below is a table showing theacquisitionsthe first full year of ownership.made in 2010.Pre tax Consideration return on investment % m2008 20092010Integration process2008In order to facilitate a smooth process, executives are acquisitions 49.912.46.57.8given responsibility for integration. The integration 2009ofthe Canon acquisition, completed in October, acquisitions 26.5 14.8 4.51isprogressing well.2010acquisitions2 258.0 10.6Total 334.4 10.0InitialExpected considerationcontingent and net of cashdeferred Estimated total acquired* considerationconsideration2010 acquisitions Geography Segment Community m m mE Commerce Expo UKEvents Technology 0.4 1.21.6Sign ChinaChina Events Other6.3 4.3 10.6DesignCon USA Events Technology 0.9 0.9Sienna Concrete showBrazilEvents Built Environment6.5 6.8 13.3NavalShoreBrazilEvents Trade & Transport1.2 0.11.3Children Baby Maternity ExpoChina Events Lifestyle6.3 4.2 10.5The Routes Development GroupUKEvents Trade & Transport6.8 1.38.1Canon CommunicationsUSA Events Technology/Health182.9 182.9Publishing Expo UKEvents Other0.2 0.2DNA-13CanadaTD&M News Distribution4.0 0.64.6PR Newswire do Brasil BrazilTD&M News Distribution0.7 0.10.8PR Newswire Argentina Argentina TD&M News Distribution0.0 0.0Corporate360Hong Kong TD&M News Distribution0.2 0.70.9Hors AntenneEuropeTD&M News Distribution5.3 2.78.0SharedVue USA DS Technology 0.2 4.95.1CenTradeX USA DS Trade & Transport0.3 0.10.4UM PaperChina DS Paper0.1 0.20.3JOC Exchange (Triton) USA DS Trade & Transport0.3 1.72.0Lead-In ResearchUKDS Built Environment0.9 0.31.2Game Advertising Online New Zealand Online Technology 0.6 3.03.6Astound USA Online Technology 0.1 1.01.1OBGYN.net USA Online Health 0.5 0.10.6Total 224.733.3258.01 Performance reflects reported results for The Fuel Team which was integrated into PR Newswire in 2010. Excluding it, the pre tax return on acquisition would have been 8.6% for 2009 acquisitions.2 2010 return on investment calculated on a full year pro-forma basis.* See explanation of UBMs business measures on page 51.12 United Business Media Annual Report and Accounts 2010 15. 3.4.5.People andResponsible Processesculture business Section 1: 2010 ReviewOur peopleThe issues of sustainability, climate changeStructure & Controland corporate responsibility affect us all and,A key element for creating long termIt is important to ensure we have theas a global company, we are committed togrowth is our ability to attract, develop appropriate processes in place to carefullyensuring that we engage positively withandretain the most talented people at alland efficiently measure and controlsociety and minimise any negative and sociallevels. Our people are our most valuableperformance within the business.impacts from our operations. Acting withasset. We do this through a variety ofThe CEO hosts monthly meetings/respect is central to the way we do business,initiatives including:video calls with each of the divisionaland we believe that acting in a responsibleCEOs. We have a thorough quarterlyTalent management most notably ourmanner is key to delivering sustainable valuereview process in which the divisionalBusiness Leaders Programme and European for our shareholders.CEOs update on performance andLeadership Development Programmeexpectations against budget. Rewards areEnvironmentAdopting employment policies whichalso aligned with strategy through Section 2: Governanceofferflexible working and paid leave As a leading organiser of events all around incentives to achieve budget and specificAppropriate reward incentives theworld we recognise the impact thatpersonal objectives.includingbonus, long term incentives ourbusiness can have on the environment.andSharesave schemes Weseek to reduce our carbon footprint over Focus on KPIstime and improve our recycling efforts.Promoting the wellbeing of our people As highlighted on page 9 the Board reviewwellness clinics and programmes, health certain financial KPIs for the Group asLudgate House carbon footprint tCO2echeckups, healthclub reimbursementawhole and operational performance 5,399schemes etc indicators. The quarterly review process, 3,885mentioned above, also looks at the financial 3,339 3,380 3,413Our culture performance of each of the divisions.Equally important is the culture of the Sound risk management Section 3: Financial statementsGroup we have continued to makeprogress in developing a positive culture 0607080910Sound risk management is an essentialwhich is meritocratic, intellectually honest, discipline for running the business efficientlyentrepreneurial and innovative, which Community and pursuing our strategy successfully. Ourvalues respect and integrity, and which isinternal audit function manages a UBM-wideWe recognise the importance of ourannual risk mapping exercise reviewing withagile and responsive to changes in ourrelationship with the communities in whichworkplace. We believe that clear and open each division the risks they have identifiedwe operate. Over time we have been shifting and agreeing upon measures and controlscommunication is fundamental to fostering our community focus away from morethis positive culture. We use a variety oftomitigate their risks wherever possible.passive philanthropic activities, such asThis process is reviewed by the Auditmeans to communicate: the UBM Wiki, simple cash donations, to more activestaff surveys, town hall meetings,Committee and then by the Board, toengagement, looking to bring our expertiseensure a consistent and coherent approache-newsletters etc. Encouragingly, our first tobear in how we serve the communities inUBM-wide engagement survey highlightedto the principal risk factors and to thosewhich we operate. other risk factors that may arise or whichthat we scored above the norm in areas suchas recognition/respect in the workplace,may become material in the future.encouragement to innovate and the senseDivisional performance and associatedthat employee contributions are valued. risks are regularly discussed on CEOmonthly calls.For more detail about Corporate For more detail about how we manage riskResponsibility see pages 44-50. see pages 40-43. United Business Media Annual Report and Accounts 201013 16. Section 1: 2010 Review Operating and Financial Review Segmental Performance Events Events offer the unique experience of face-to-face meetings The business model UBMcreatesvalueby: ranging from large-scale global industry exhibitions or tradeshows through to small-scale incentive events. Industry analysts recogniseTargeting specialist communities exhibiting attractive growth characteristics events as one of the few traditional media types which have Creating and evolving strong branded events within proved resilient in the emerging digital environment each specific community (or sub-community) to underpinned by the continuing importance both of exhibitionsensure it is a must attend event within sales and marketing activities and of the face-to-face Exploiting growth opportunities by launching and interaction between buyers and sellers provided by tradeshows.geo-cloning events, especially into Emerging Markets Revenues are driven by: Geographic split %Community split % The number of events hosted The size of those events 1. Emerging Markets1 38.751 1. Technology 24.9 1 2. N. America 26.32. Lifestyle18.2How many exhibitors or attendees we can attract 3. UK 16.44 3. Ingredients17.7The price the exhibitor, attendee, visitor or sponsor 4. Europe 14.64. Fashion15.1 5pays (depending on which type of event it is) 2 5. RoW4.0 5. Other24.1 3 Attractions of the Events industry: 243 Strong cash generation and favourable working capital flows Forward booking and revenue visibility Revenue growth m Adjusted operating margins %Profit margin potential with strong branded events 31030.3 30.2 Relative recession resilience of leading events 292 288 29.428.227.327.4 245220168 Potential challenges: Government and associations influence UBM maintain strong relationships where necessary, including recently creating a managerial position in 05060708091005 06 07 08 09 10 Beijing whose primary mandate is to manage and coordinate UBMs overall China relationships Event maturity we closely monitor the life cycle of our events and manage our event brands accordingly Margin dilution while building event brands Infrastructure constraints within Emerging Markets 1 Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia, Philippines, Mexico and UAE.14 United Business Media Annual Report and Accounts 2010 17. UBM Event brands FUNDI NG A FFO R DA B L E HOUS ING 19 May 2011 Eversheds, Londonpropertyweek.com/affordablehousingEmerging Markets1The marketplaceUBMs market position Section 1: 2010 ReviewUBMs events operations areEvents industry analysts AMR estimate that in 2010 The tradeshow industry is highly fragmented, withwellaligned with a signicantproportion of revenues the global events industry declined 0.6% to $24.8bn. noone player holding more than 4.0% of the globalgenerated in Emerging Markets. Interestingly this was owing to a significant declinemarket. UBM is estimated to be the fourth largest inUS performance and generally softer Europeanplayer with around 1.8% of market share and the38.7%trends, partially offset by improvements in German, Italian and Emerging Market countries. The pie chartsecond largest pure play organiser.Exhibition market by operator % below shows how significant the US is within theExhibitions marketplaceglobal events market:1. Reed Exhibitions*4.0 1 23General Emerging Markets2. GL Events3.2 45representation within global Exhibition market by geography % 3. Messe Frankfurt2.4Events marketplace is 1. US 42.614. UBM* 1.8relatively small at present. 2. UK5.9 5. Fiera Milano 1.7 Section 2: Governance14.6%3. Europe 4. EM1 20.0 14.656. Other 86.9 5. RoW16.94* Pure play events organisers. 2 3UBMs events portfolio comprises over 300 eventsand generates 68.3% of Events revenues from AMR estimate that the CAGR between 2010 andexhibitor paid tradeshows. A small number of 2014 will be 6.2%. Within this there is some variation UBMs events, principally our US-based technology between country performance as illustrated in theshows, are attendee paid events. UBM also operates table below. anumber of conferences which may serve as2010f2014f complementary components of a wider portfolio Country CAGR % ofmedia products designed to serve a particular Section 3: Financial statements China +10.9 commercial community. Brazil +9.3 The competitive positioning of UBM is event India+9.0 specific and depends upon the community and US +6.7 geography. We have some extremely strong brands Turkey +6.7 within our events portfolio, with our top 20 annual Germany+4.1 Events accounting for almost 50% of Annual UK +3.7 Eventsrevenues. UBMs Event operations are particularly well Hong Kong+3.5aligned to the increasing importance of China, France +3.3 Indiaand Brazil. In 2010 our events in Emerging Italy+2.8 Markets represented 38.7% of UBMs total Eventsrevenue, a much larger share than the 14.6% thatthese countries events represent within the globalUBMs market positionevents market. This positions UBM with a uniqueHighly fragmented market noone player >4.0% marketplatform for growth.share. UBMs position 4thwith 1.8%.1.8%United Business Media Annual Report and Accounts 2010 15 18. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Events continuedTotal Events revenue2010 performance fell10.0m year on year reflecting the portfolioGrew by 7.8% over the year. difference between the odd and even year events.We are encouraged by the progress of our EventsAnnual event revenues grew 12.6% to 290.2mbusiness which, following good growth in revenues(2009: 257.7m) reflecting the improvements inand a solid margin performance, now accounts for thequality of the event portfolio stand revenues34.8% of UBMs revenues (2009: 33.9%) and 54.4% rose 10.2% to 193.9m (2009: 175.9m), attendee310.0m of total adjusted operating profit1 (2009: 50.9%). Over the course of the year we hosted over 300 revenues were up 24.1% to 36.8m (2009: 29.7m) and Sponsorship and other revenues rose 14.2%events, including: 198 tradeshows, 78 conferencesto59.5m (2009: 52.1m).and 23 awards in 21 different countries (2009: overDuring 2010 we invested a total of 229.4m300 events in 17 countries). In keeping with our buying outright or acquiring majority interests instrategy of increasing our emphasis on high growth nineevents related businesses, which have alreadycountries this included six new exhibitions in India,contributed 16.3m to the 2010 reported eventstwo in China, one in Brazil and one in the Middlerevenue. Had they all been owned since 1 JanuaryEast. Three of these events were geo-clones into 2010 they would have contributed approximatelyChina, India and Abu Dhabi (while a fourth was afurther 33.2m. The most high profile acquisitiongeo-cloned in the US). We acquired nine furtherwas of Canon Communications while our otherevents businesses while discontinuing certain others acquisitions provide UBM with greater exposure(19.3m of 2009 revenues have now been toEmerging Markets or to attractive high growthdiscontinued or sold). communities. For example the World Routes A total of 36,900 exhibitors attended our annual Development Forum provides UBM with a leadingevents during the year (2009: 37,300) with squarescheduling event in the aviation calendar while themeters for our annual portfolio rising 3.3% to 925,200 Sign China tradeshow provides good exposureand overall visitor numbers remaining broadly flat tothishigh growth outdoor advertising sector in(1,220,000 vs 1,207,000) despite discontinuing anEmerging Market economy and both events noworselling a small number of paid events.feature among our Top 20 shows. Other notable Total reported revenues for events grew by 7.8% acquisitions include the Shanghai internationalover the year to 310.0m (2009: 287.5m) impacted Children-Baby-Maternity Products Expo (CBME)by a lower biennial contribution. In 2010 we and the Navalshore tradeshow and Concrete Showhosted16 biennial events (2009: 12 events) whichSouth America in Brazil. Since the year end wecontributed 19.8m of revenue. Although thesehavealso completed our first acquisition in Turkey,exhibited 3.1% constant currency revenue growthofa65% interest in Rotaforte, the countrys largestover their 2008 editions, overall biennial revenue jewellery event organiser.CPhIUBM serves the worldwide pharmaceutical ingredientsSupporting the industrys geographical expansion,industry with a range of tradeshows, conferences and CPhIgeocloned shows now take place in China, India,online products. The agship tradeshow, CPhI, rst tookJapan and South America. UBM also supports emergingplace in Frankfurt in 1990, attracting 250 visitors and 16 Pharma markets with shows such asICSE (contractexhibiting companies. In 2010 CPhI Worldwide and itsserices), P-MEC (pharmaceutical machinery andco-located events of ICSE, PMEC and BioPh, took placeequipment), BioPharm (biosolutions). Two new brandsin Paris, attracting arecord number of nearly 29,000arebeing introduced in 2011: InnoPack (packaging forattendees and well over 2,000 exhibitors, occupyingpharma) and LabWorld (lab and analytical equipment). around 60,000sqm of showoor. UBMhas developed itsPharma event portfolio line with the industrys evolution.For more information go to www.cphi.com16 United Business Media Annual Report and Accounts 2010 19. Total Events Performance Full yearFull year CC Underlying20092010 Changechangechange* m m % % %Annual Events Revenue 257.7 290.212.611.7 12.2Biennial Events Revenue29.8 19.8(33.6)(33.8) n/aTotal Events Revenue287.5310.07.8 7.0 12.2Total Events Adjusted Operating Profit187.2 93.57.2 6.2 12.0Total Events Adjusted Operating Profit1 Margin 30.3%30.2% (0.1)%ptOn an underlying basis revenues grew 12.2% duringItis worth noting that had we owned the CanonSection 1: 2010 Reviewthe year. This figure represents the constant currency andDesignCon businesses from 1 January 2010(CC) organic growth of our continuing annual theywould have contributed approximately a furtherevents portfolio (stripping out biennials, discontinued23.4m to North American annual event revenues.activity and acquired businesses). Approximately 1.7 Revenues from our UK annual events fell 3.0% with%pts of this increase reflects newlaunches while thethe incremental revenue from the E Commerce Exporemainder is attributable to improvements in the acquisition, positive performances at certain (largelyevents industry more generally. Of our top 20H2 weighted) events and incremental revenuestradeshows that we owned in both 2009 and 2010,fromnew events, more than offset by disappointingTotal Events AdjustedOperating Prot1these showed revenue growth of 5.8% during the yearearly year performances, particularly at IFSEC with our H1 events declining 2.0%, while our H2andInteriors Birmingham both of which haveGrew by 7.2% over the year.shows exhibited 13.1% growth.beenimpacted by the continued pressure on the The table below shows the annual event revenues construction sector, and the decision to discontinuesplit by geography. Emerging Markets now account various events. Underlying UK annual event revenues93.5mSection 2: Governancefor 40.0% of our annual event revenues having risenrose 2.2%.33.0% during the year. This increase was largely European annual revenues rose 5.7% largelydrivenby acquisitions, most notably Sign Chinabecause of a strong performance at ICSE and a goodandCBME, new launches and good growth in ourperformance at CPhI Worldwide. On an underlyinglargest events. We ran our first ever events in the year basis revenues rose 8.1% reflecting the influencein Vietnam and Indonesia and approved a plan toofthe two largest events on our European annualexpand our ASEAN business. Underlying revenues portfolio. The rest of world revenues refer to Japan,for the region were up 26.3%.which has seen a 17.4% decline in annual revenues The positive North American performance has largely driven by discontinued/sold events. Whenbeen driven by the contribution of the acquiredexcluded, underlying annual revenues grew by 5.8%.World Routes and Canon tradeshows, cyclicalAdjusted operating profit1 rose 7.2% to 93.5mrecovery ofour technology events and three new(2009: 87.2m) with a broadly flat operating marginSection 3: Financial statementsexhibitions. Onan underlying basis North American of 30.2% (2009: 30.3%). We are continuing to growannual event revenues rose 4.9%, driven in particularthe business through a programme of investment intoby significant growth in attendee revenues from ourgeo-clones and new launches which dilutes the overallBlack Hat (ITsecurity) event in July and othermargin, added to which, in aggregate, our even yeartechnology events. biennial shows have a lower margin than odd years.Annual Events Revenue Performance Full year Full yearCC Underlying2009 2010Changechangechange* mm% % %Emerging Markets2 87.2 116.033.0 31.1 26.3N. America74.480.0 7.56.84.9UK49.748.2(3.0)(3.0) 2.2Europe33.235.1 5.75.98.1RoW 13.210.9 (17.4) (18.8) 5.8Annual Events Revenue257.7 290.212.6 11.7 12.2* Underlying growth rates exclude currency movements and portfolio changes.1 Adjusted operating profit is operating profit excluding amortisation of intangible assets arising on acquisitions, exceptional items and share of taxation on profitfrom joint ventures and associates. All references to margin are on this adjusted operating profit basis. See explanation of UBMs business measures on page 51.2 Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia,Philippines, Mexico and UAE. United Business Media Annual Report and Accounts 2010 17 20. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued PR Newswire: Targeting, Distribution and Monitoring PR Newswire provides communications products and The business model UBMcreatesvalueby: servicestoprofessionals working in marketing, public relations, corporatecommunications or investor relations roles inOffering a distribution platform withunparalleleddirect reach businesses,government and other non-commercial organisations.Creating new products which enable marketing Our mission is to positively impact our customers reputation,andcommunications professionals to do their brand and revenues by enabling content to reach and engage jobmore effectively targetaudiences.Revenues are driven by:The number of releases Geographic split %Business split % The types of releases 1. N. America 86.31 1. US wire41.61New products which aid the marketing and4 2. Europe 3.1 23 2. US non-wire29.1 communications professionals 3. UK 4.3 3. PR Newswire The price they are willing to pay for those services 4. Emerging Markets1 6.33. Europe7.44 4. Other 4. PR Newswire3 Attractions of the TD&M industry: 4.businesses21.9Increasing necessity for clients to engage 2withatargeted audiencePotential growth of the global disclosure marketwithgrowing obligation to engage more Revenue growth m Adjusted operating margins % Growth opportunities by innovating throughnewchannels and into new geographies 181 34.832.315416128.028.1 27.8The scalability of technology platforms14113023.2104Potential challenges:Risk of commoditisation of traditional wire productsRevised regulatory guidance which reduces clients 050607 08 09100506 07 08 0910reliance on traditional wire distributionSpeed of change within the digital environment 1 Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia, Philippines, Mexico and UAE.18 United Business Media Annual Report and Accounts 2010 21. UBM Targeting, Distribution and Monitoring brandsWire market share in the US The marketplaceIn addition to this, as financial markets continue to Section 1: 2010 ReviewThe Company believes it is one globalise, the number of companies needing to fulfilFor PR Newswire almost half of the revenues aredisclosure obligations imposed by national andof the market leaders in the wiredistribution market in the US*. generated through US wire distribution the graph international market regulators is likely to continuebelow shows the trend in wire distribution in the US toexpand so we expect the global disclosure marketover time*. As you would expect, the graph shows there to grow over the long term.30.7% is acorrelation between the economic environmentand the number of press releases being distributed.UBMs market positionWire volumes in the USWire volumes in the US over time 000 PR Newswires business is largely US basedTotal wire market trafc* intheUS is estimated to have 579 565622 with41.6% of revenues generated through USwirepicked up in 2010.456 481 500 products. PR Newswire analysis of third party data*of wire releases lead the company to believe that,+9.6% along with Business Wire, PR Newswire is a market Section 2: Governanceleader in wire distribution in the US.US wire market share %Source: PR Newswire analysis* 0506070809101. Business Wire 30.8 51As mentioned on page 8 the digital environment2. PR Newswire 30.7ischanging how many organisations communicate3. PRWeb 17.74withtheir audiences, most notably with the shift 4. Marketwire16.7awayfrom traditional advertising practices towards 5. Global Newswire 4.1 2methods of driving audience engagement. There hasbeen a corresponding increase in the popularity of 3Multimedia News Releases (MNR).PR Newswire MNR trafc over time 000 In terms of the Multimedia News Releases Section 3: Financial statements2.5 agrowing area for PR Newswire Similar analysis of2.0 third party data* of multimedia news releases lead thecompany to believe that PR Newswire is the market0.9 leader in this segment.US MNR market share %1. PR Newswire 47.71Source: PR Newswire analysis08091042. Marketwire32.0The previously very separate activities of advertising, 3. Business Wire 16.1 3marketing, public relations, corporate communications 4. Global Newswire 4.2and investor relations areincreasingly using anintegrated set of techniques and tools to communicatean organisations message more consistently and across 2awider range of media.* Estimates based on PR Newswire analysis of third party data. We are not ableto verify that the third party data has been presented on a consistent basis. United Business Media Annual Report and Accounts 201019 22. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Targeting, Distribution and Monitoring continuedTotal TD&M revenue2010 performanceStatistics for 2010 suggest we are the leader in theGrew by 12.3% over the year.USMNR market, and we believe the business is wellPR Newswire, our TD&M business made goodpositioned to benefit from the growing popularityprogress in 2010. The business showed headlineofMNRs as well as the increasingly widespread userevenue growth of 12.3% to 181.2m (2009: 161.4m), ofmultimedia content as part of standard corporatepart of which was currency appreciation and on a181.2m constant currency basis revenues grew by 9.0%. Our US wire business showed a resilientcommunications practice. We have continued to make progress in diversifyingour geographic revenue base. Our non-US revenuesTD&M adjusted operating prot**performance with revenues increasing 2.9% to 75.4m rose 18.8% to 53.1m and now account for 29.3% ofreflecting generally higher levels of corporate and total TD&M revenues (2009: 27.7%). PR NewswireFell by 6.0% reectinghigherlevels of investmentmarketing activity. The number of wire releases weEurope revenues rose 10.7% to 13.5m, principallyinthe business.distributed in 2010 in the US (on behalf of US anddriven by UK wire growth. Revenues generated in theinternational customers) grew 4.4% to 190,700.other PR Newswire businesses grew 21.8% to 39.6m42.1mWeestimate that overall press release volumes in theUS increased approximately 9.6%, with some smallerdriven by currency appreciation, animproving wireperformance in Asia and Latin America and thecompetitors gaining traction, principally with theincreasing popularity of MultiVu. The Corporate360smalland medium-sized enterprises. In response to this acquisition further bolsters our multimedia offering towe have recently launched iReach, a streamlined lower Asian businesses, particularly for corporate webcasting.cost distribution platform aimed at smaller businesses.During the year we strengthened PR Newswire Our non-wire US products exhibited 21.4% by spending 14.3m on acquiring five complementarygrowth to deliver 52.7m of revenues, driven by businesses, which contributed 2.9m of revenuesparticularly strong performances at MultiVu (ourto2010, and would have contributed approximatelymultimedia news release (MNR) production andafurther 4.1m had we owned them sincedistribution platform), from managing an increasing 1January2010.number of corporate and IR websites and fromVintage (our filing and printing service).MultiVuMultiVus broadcast and multimedia production anddistribution services help customers communicatetheirkey messages totheir target audiences in themedia, inthe nancial community and to the generalpublic. MultiVus goal is to help customers maximisetheirreturn on investment in multimedia productionbycreating compelling content and distributing thatcontentacross arange of media platforms reachingtraditional radioand television media and onlinechannels and encompassing emerging platformssuchas social media and mobile devices.For more information go to www.multivu.com20 United Business Media Annual Report and Accounts 2010 23. These acquisitions improve our international reach:This has not only improved the robustness and Section 1: 2010 ReviewHors Antenne provides a high quality Frenchreliability of the platform but has improved ourdatabase of contacts, Corporate360 is a Hong KongITflexibility, and we are beginning to create abased company which provides webcasting solutionsvirtualised infrastructure based on cloud technology.for Asian businesses, DNA-13 allows our Canadian We have also invested in marketing increasing theNewswire business to build upon its workflow number of personnel at the management level,solution for PR professionals, while the purchases ofinthefield and in our call centres not only to drivethe remaining interests in PR Newswire do Brasil and wire product sales but also promote sales of ourPR Newswire Argentina enable us to capture the fullnewerproducts such as MultiVu and Vintage.upside of growth in these Emerging Markets.Giventhe broadening product offering we are Excluding these acquisitions and currency investing in further development of our sales forceimpact, total underlying revenues rose 5.6% during and improving the CRM and database tools usedthe year.tosupport their activities. A number of new products Adjusted operating profit** for TD&M fell 6.0%have been launched most notably iReach and Section 2: Governanceto 42.1m with a margin of 23.2% (2009: 27.8%).ProfNet Connect. Higher levels of capital expenditureOur core US wire margins remain robust and thisof 7.6m (2009: 5.6m) to support our flagshipdecline partially reflects the growth in our newer pressrelease platform and various new productlower margin non-US wire products, the integration developments have resulted in increased depreciation.of our acquisitions which given their small scale arealso currently lower margin, as well as a significantstep up in investment in the business. During the yearwe enhanced our IT by outsourcing our significant(600+) server infrastructure to a third party provider. Section 3: Financial statementsTargeting, Distribution and Monitoring Performance Full yearFull year CC Underlying20092010 Changechangechange* m m % % %RevenueUS wire products73.3 75.42.91.3 1.3US non-wire products43.4 52.7 21.4 19.612.7PR Newswire Europe12.2 13.5 10.7 10.8 4.7Other 32.5 39.6 21.8 11.2 5.6Total TD&M Revenue 161.4181.212.3 9.0 5.6Total TD&M Adjusted Operating Profit**44.8 42.1 (6.0)(8.9) (9.0)Total TD&M Adjusted Operating Profit** Margin 27.8%23.2% (4.6)%pt* Underlying growth rates exclude currency movements and portfolio changes.** Adjusted operating profit is operating profit excluding amortisation of intangible assets arising on acquisitions, exceptional items and share of taxation on profit from joint ventures and associates. All references to margin are on this adjusted operating profit basis. See explanation of UBMs business measures on page 51. United Business Media Annual Report and Accounts 201021 24. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Data Services UBM provides data and information products to supportThe business model UBMcreatesvalueby: professionals in their decision making and day-to-day activities. We look to create unique market leading data sets that can beTargeting specialist communities exhibitingattractivecharacteristics utilised by multiple end users in niche sectors.Creating unique high quality data sets which satisfycustomer needs and are essential for their jobCommercialising the data to different end users Geographic split %Community split %through multiple products/delivery channels 1. N. America 42.7 51 1. Health38.11 5 2. Europe 26.2 4 2. Technology & IP 23.7 4Revenues: 3. UK 16.23. Trade & Transport 23.3The diversity of businesses within our Data Services 4. EM110.54. Paper7.3division means there are different types of revenues 5. RoW4.4 5. Other7.6and therefore different associated drivers 3 3Broadly speaking the drivers are the number of clients 2 2and how much they are willing to pay to either beincluded in part of the data set or to use the datainformation and services we provide Revenue mAdjusted operating margins % Attractions of the Data Services industry: 179 185 24.1 23.8 16820.8Profitability of a strong sector position 143 18.418.918.5Growth prospects of targeted communities9173Growth opportunities from innovating throughnewchannels and into new geographies0506 07080910 05 06 07 080910 Potential challenges:Investment to support systems and processesforincreasingly sophisticated digital productsManaging move from print to digitalGovernments and other bodies making sourcedatamore readilyavailableIncreased competition from low cost new modelcompetitors or significant new entrants 1 Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia, Philippines, Mexico and UAE.22 United Business Media Annual Report and Accounts 2010 25. UBM Data Services brands I ASI ST PatentVista Enterprise THE STANDARD IN TRADE INTELLIGENCEBusiness informationThe marketplaceUBMs offerings Section 1: 2010 ReviewPwC estimate, in 2010,The continued growth in computing power andUBM has targeted specific communities whichthemarketplace is worthavailability of broadband network access has allowed offerattractive growth prospects. UBMs competitivebusinesses and organisations to access, store, combine,positioning is sector and geography specific.manipulate and analyse ever larger amounts ofTheparagraphs below give you a flavour for$70.8bn digitalinformation as part of their standard workingpractices. This trend creates substantial opportunities ourkeybrands within each community.Within the Health sector Vidal is our most highMarketplace growth for example providing ongoing validatedprofile brand which provides drug information tosubscription data sets to businesses and analyticalseveral healthcare professional populations in France.PwC estimate the BusinessInformation segment will growservices using that data or business decision supportWe believe we are the market leader in the Generalbetween 2010 and 2014 tools which professionals rely upon as indispensible Practitioner market and also have strong marketworkflow solutions.positions in supplying private and public hospitals+1.0%PricewaterhouseCoopers provide an analysis of and retail pharmacies. Another strong brand of Section 2: GovernanceCAGRthe Business information segment of the BusinessUBMis MIMS which is our drug information systemtoBusiness marketplace. Covering a wide range of used in Asia/Pacific.financial, marketing and industry data-based products Our most significant Technology brand isand services, this forms the largest segment of theTechInsights which mainly provides intellectualBusiness to Business marketplace and was valuedproperty and technical intelligence data servicesat$70.8bn in 2010. Reflecting the challenging forthe semiconductor and portable electronicseconomic environment the report estimates therespace.The sector is not tracked by analysts and iswasan 11.1% decline in 2009 and a 5.2% declinetraditionally served by small, privately heldin2010 in the value of this segment. Going forwardcompetitors. Although not independently verifiablethey estimate the market will reach $80.3bn in we believe we have 40-45% market share in our2014,with some further softness (1.0%) in 2011 traditional services.subsequently replaced by strengthening single-digit We have two major Trade & Transport brandsgrowth in the following years. PIERS and OAG. Piers provides data and analytics Section 3: Financial statements PricewaterhouseCoopers also analyse the for import/export related industries. It is thoughtdirectory advertising marketplace which they tobe market leader in US import and export data,estimate is worth $28.8bn in 2010, of which c.85%although the private ownership of the competitionisgenerated through print directory advertising.makes this difficult to verify. OAG provides data andGoingforward the expectation is for a 0.4% declineanalytics for the air transport industry most notablyin the directory advertising segment between 2010the scheduling marketplace.and 2014 although this masks 19.1% CAGR RISI is the umbrella brand servicing Forestindigital directory advertising offset by 4.6%products industries such as Paper, pulp & timber.compounded annual contraction in the print Barbour ABI is our data brand for the UKdirectory advertising segment. construction industry and is the joint market leaderinproviding all information about planned construction projects in the UK.Directory advertisingPwC estimate, digitaldirectory advertising willgrow signicantly between2010 and 2014.+19.1%+19.1%CAGRCAGRUnited Business Media Annual Report and Accounts 2010 23 26. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Data Services continuedTotal DS revenue2010 performance Advertising revenues fell 19.2% to 17.7m with theGrew by 3.1% over the year. majority of the shortfall in print advertising due toData Services has seen improving performance duringthe Health and Trade & Transport communities,2010 with revenues up 3.1% to 184.7m (2009: including the US rail print directories.179.1m). Underlying revenues rose 3.5% overall.1.5m of the total revenue growth is attributableOurcore products and services are progressing well,184.7m particularly the mix of revenues and managing themigration from print data to online, while investment to the five DS acquisitions made during the year which, if acquired at 1 January 2010, would have contributed approximately a further 2.3m ofinnewproducts and our core data sets is positioning us revenues. SharedVue provides marketing automationfor future growth. As the table on page 25 demonstrates software for technology manufacturers, CenTradeXthere has been a significant variation in performanceprovides market intelligence tools for the globalbetween the different types of revenue stream. import/export community and has been fullySubscription and listing fees grew 1.8% to integrated into the core PIERS offerings, the start-up117.2m with the good performance of digital JOC Exchange provides a trading platform forhealthcare subscription products such as MIMSmaritime transport container shipping capacity anddigital product in Asia/Pacific and Vidal Integrated has now signed its first customers, while Lead inData Services (IDS), more than offsetting declines Research provides a rich data set for our UK-basedinthe majority of print data products. It is worthBuilt Environment business.noting that print related products now only account Geographically, DS activity remains weightedfor 33.3% of total DS revenues, 5.3 percentage points towards the North American and Europeanlessthan in 2009. Consulting, content and trainingmarkets Emerging Markets currently account forprovide the second largest category of revenuesonly 10.5% of total DS revenues (2009: 10.6%).andthese rose 18.6% to 49.8m. This uplift wasWecontinue to explore ways to increase this presenceprincipally driven through our services to the either through leveraging our current data setsTechnology community, most notably by our UBM(forexample taking our Spanish and PortugueseTechInsights business which is an increasingly highhealthcare services into Latin America) or acquiringprofile player in the electronics and semiconductorcomplementary businesses in the region. In keepingintellectual property market. Margins in this category with this strategy our fifth acquisition, UM Paper,tend to be somewhat below those in the pure data is a Chinese paper pricing and intelligence businessparts of the business and therefore its growth had and we are working to expand our Data Servicesadilutive impact on the overall DS margin.presence in these markets.VidalVidal is UBMs leading Drug Information System (DIS) healthcare market, Vidals content is now delivered viabrand. Vidal products are used by GPs, hospital doctorsavariety of platforms including: integrated into GP andandpharmacists to support their decision-making onhospital electronic health record systems (EHRs), onlinedrug prescription, dispensing and administration. Usingsubscription web services, smart phone applications asVidalhelps clinicians avoid prescription and other errors well as in its well-used print form. UBM Medica is nowand improves the quality of care they give their patients. leveraging Vidals content, frameworks and systems toOriginally developed in the early 20th century as ameet the needs of healthcare providers in other marketsprinted drug information directory for the Frenchsuch asSpain, Portugal, the Middle East and Brazil. For more information go to www.vidal.fr24 United Business Media Annual Report and Accounts 2010 27. Data Services Performance Full yearFull year CC Underlying20092010 Changechangechange* m m % % %RevenueSubscription and listing fees 115.1 117.21.82.8Consulting, content and training 42.049.8 18.6 17.3Advertising21.917.7(19.2) (17.6)Total DS Revenue179.1184.7 3.13.83.5Total DS Adjusted Operating Profit** 37.334.1 (8.6) (7.1) (5.8)Total DS Adjusted Operating Profit** Margin20.8% 18.5% (2.3)%ptThe table below highlights how the performance ofAdjusted operating profit** for Data Services Section 1: 2010 Reviewour DS products and services vary between differentfell8.6%to 34.1m (2009: 37.3m) and there was acommunities. The revenues from Health rose 1.4% to corresponding decline in the margin to 18.5% (2009:70.4m reflecting growth in our online data products 20.8%). As described in February, and reiterated byand Emerging Markets, partially offset by declines inHenry Elkington at our Investor Day inNovember,our print directory businesses and negative currency we are investing in the DS business, toenhance themovements. Our Technology & IP related revenuesquality of the data sets, to develop new products andgrew 18.1% to 43.7m with over halfthe increase expand our geographic reach. We have been investingattributable to growth in UBM TechInsights.in new delivery channels and now have ten healthcareDS Adjusted operating prot**Thisbusiness has benefited from the ongoing mobileapplications for smart phones in the marketFell by 8.6% reectingdevices technology race and general improvements generating over 170,000 downloads and 15,000higher levels of investmentin the business.inthe health of the electronics and semiconductor subscriptions. During the year we set up a RISI officeindustry. The Trade & Transport community remainsin China, which has been enhanced with the UMunder economic pressure and this is reflected in the Paper acquisition and we have been investing to34.1m Section 2: Governance7.1% decline in revenues to 43.0m driven by the enterthe Middle Eastern and Latin Americandiscontinuation of certain legacy rail print directories druginformation markets by beginning to localiseand general pressure in therail and aviation markets. ourexisting content. We have also bolstered theThe performance of ourPaper related products andpatent brokerage business at UBM TechInsightsservices rose 3.8% to13.5m helped by our pulp &and,following the Canon acquisition, are movingpaper economic analysis product and some currencyinto IPrelated consultancy and data for the electronicappreciation. Forthe UK construction communitymedical devices industry.although ABIhas seen improvements during 2010this was largely offset by declines in Health and Safetyandthedecision to discontinue certain productsserving the sector revenues derived from productsserving the Built Environment sector rose only 0.8% Section 3: Financial statementsto 12.7m.DS revenue performance by community Full yearFull year CC Underlying20092010 Changechangechange* m m % % %RevenueHealth69.4 70.4 1.4 5.33.2Technology & IP 37.0 43.7 18.1 16.614.6Trade & Transport 46.3 43.0(7.1) (8.5)(5.1)Paper 13.0 13.53.82.42.1Built Environment 12.6 12.70.80.40.0Other0.81.4 75.0 89.389.3Total DS Revenue 179.1184.7 3.1 3.83.5* Underlying growth rates exclude currency movements and portfolio changes.** Adjusted operating profit is operating profit excluding amortisation of intangible assets arising on acquisitions, exceptional items and share of taxation on profit from joint ventures and associates. All references to margin are on this adjusted operating profit basis. See explanation of UBMs business measures on page 51. United Business Media Annual Report and Accounts 201025 28. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Online Marketing Services We execute campaigns on behalf of clients looking to enhance The business model UBMcreatesvalueby: theirbranding, customer awareness, reach and engagement ortogenerate sales leads with specific communities.Having the best knowledge and understandingofspecificcommunitiesIn addition, UBM uses the online environment to extendHaving the ability to identify target audiences theinteraction generated at annual or infrequent in personandmarketeffectively tradeshows throughout the year and to enrich that interaction with Having a variety of marketing services/channels increasingly sophisticated online social networking capabilities.soclientscan choose the most appropriate forthecampaignSatisfying the clients needs and being able todemonstrate the effectiveness of the campaign Geographic split %Community split % 1. N. America 82.2 11. Technology 78.9 1 Revenues are driven by:4 545 2. Europe 1.3 2. Health 10.233 3. UK 9.5 2 3. Built Environment 3.2 The number of clients and the price they are 2 4. EM 1 2.8 4. Lifestyle 1.8 willingto pay for our marketing services 5. RoW4.2 5. Other 5.9Examples of price metrics include:Cost-per-thousand (how many view anadvert)Cost-per-lead (details of people whoregister)Cost-per-click Revenue growth m Adjusted operating margins % Sponsorship691.9 Virtual exhibitor or attendee revenue 1.31.15754Community website build and management fees434230 (0.7)(1.0)Attractions of the online marketingservices industry: (2.6) 05060708 0910 05 0607 08 0910Growth opportunities by innovating throughnewchannels and into new geographiesGrowth prospects given increased digital adoptionGrowth prospects of targeted communitiesThe scalability of technology platformsPotential challenges:Speed of change within the digital environmentInfluence of analytics and enhanced transparencyCompetitive environment 1 Emerging Markets constituents are the non-G10 countries most notably for UBM: China, Brazil, India, Thailand, Singapore, Indonesia, Malaysia, Philippines, Mexico and UAE.26 United Business Media Annual Report and Accounts 2010 29. UBM Online Marketing Services brandsDigital trade advertising The marketplaceUBMs market position Section 1: 2010 ReviewPwC estimate digitalMarketing techniques in the online environment As for the other segments UBMs market position isadvertising in trade magazineswill grow signicantly betweencontinue to develop rapidly, with online being very community and geography specific. We operate2010 and 2014.increasingly used as part of integrated marketingin niche communities which offer attractive growthcampaigns which take advantage of a range of prospects. Our competitive positioning is hard to+13.4%CAGRmediatypes in order to achieve active engagementwith target audiences, rather than passive reach. verify although we have some of the leading online brands for certain sectors (see above). During 2010 PricewaterhouseCoopers provide an analysis of we also received a number of awards in recognitionthe Digital advertising Trade magazine segment ofofthe strength of our online products including:the Business to Business marketplace. Their analysissuggests the segment market was worth about $1.5bn 2010 Mins Best Integration with print forin 2010 however it is forecast to grow at a 13.4%InformationWeek AnalyticsCAGR between 2010 and 2014.2010 Mins Best Virtual Tradeshow for Section 2: Governance Marketers are increasingly sophisticated in their InformationWeekvirtual Eventmeasurement of customer engagement, tracking 2010 Mins Best Podcast/Video Cast forcampaign outcomes in terms of lead generation andInternetEvolutioninvolvement in opt-in programmes, often using 2010 Mins Best Overall Use of Video forinteractive social media. The development of the InternetEvolutiononline environment, particularly social networkingcapabilities, are creating new forms of engagement 2010 Mins Best Ad program/Partnership forbetween businesses and their audiences, and in doing Internet Evolution/IBM Partnershipso generating new opportunities for B2B media2010 Mins Best In-box (email) for NY Interopbusinesses. Forrester research forecast B2B social 2011 Mins Best of the Web finalist for EBNmedia marketing spend to hit $54m in 2014,compared to $11m in 2009.2010 Folio Eddie Award for Best website A particular area of focus for UBM is to extend inB2BEnergy/Utilities/Engineering for EETimes Section 3: Financial statementsthe face-to-face interaction of their in person live 2010 Media Power 50 award for best technologyevents through the online environment to develop brands for EETimesvirtual events that provide highly innovativeengagement techniques. AMR estimate that the The virtual Events market is currently highlyvirtual exhibitions market is currently worth $55m fragmented, much like the live equivalent howeverB2B social mediaalthough it is expected to grow to $200m by 2014.we have hosted 103 virtual Events in 2010 and believeForrester estimate B2B socialwe are currently the market leader.media spending will be worth.$54m in 2014.$54.0mVirtual eventsAMR estimate the virtualexhibitions market is currentlyworth $55m but will grow to$200m by 2014.$200.0mUnited Business Media Annual Report and Accounts 2010 27 30. Section 1: 2010 Review Operating and Financial Review Segmental Performance continued Online Marketing Services continued2010 performance This is largely driven by the significant increase inthenumber of virtual events we hosted in 2010Our Online businesses have seen very strong top line (103 vs 38 in 2009) coupled with growing tractiongrowth with revenues up 28.6% to 69.2m, aided ofnew customised products which deliver higherslightly by currency appreciation. On a constant audience engagement. The subscription elementcurrency basis revenues rose 27.6% with underlying ofthe business grew 35.7% albeit off a small basegrowth of 20.2%. The profitability of the business isof1.4m in 2009. There is still a high degree ofstill inadequate although understated as a result of our experimentation in the online subscription marketsignificant investment into virtual events. Evidentlyand we are closely monitoring the trends andTotal Online revenuethe online marketing industry is still relatively newexploring new ways of generating revenues, althoughand the need to invest and innovate remains high.the largely controlled circulation legacy makes thisGrew by 28.6% over the year.The growth rates of different types of revenuestransition quite complex.have varied. Advertising revenues have increasedAs mentioned above some of the growth is26.7% to 45.5m driven largely by growth in ourattributable to the three online acquisitions made69.2mNorth American technology and semiconductorrelated businesses. As for Data Services this growth during the year, which have enhanced our offerings tothe US Game Developer community (GAO),isindicative of the general improvements in the theUS virtual recruitment industry (Astound)trading environment for these communities, although andthe US healthcare community (OBGYN.net).it has been aided by a number of important product Excludingthese acquisitions, which in aggregateinnovations such as EETimes Confidential and hadcontributed 5.6m of revenues in 2010(includingInternet Evolution, increases in the number of some additional Canon and Routes online revenues),digital issues we are publishing and incremental underlying revenue growth was 20.2%.revenues from our Game Advertising Online (GAO) As shown in the table on page 29 the mainand Canon acquisitions. Our Lead generation driverhas been the Technology community whereand other revenues have increased by 5.3m to underlying growth was 22.6% reflecting general21.8m, up 32.1%.improvements in the trading environment for technology companies coupled with good take-up ofUBMs innovations.COMDEXvirtualCOMDEXvirtual was the largest of UBMs 103 virtual COMDEXvirtuals online environment included anevents held in 2010. The COMDEXvirtual event brought Auditorium, an Expo Hall, Hospitality Suites, a Pressnearly 5,000 attendees from the worldwide technology Ofce and a Bar area. COMDEXvirtual took placesales channel together over two days to participate in duringNovember 16-17 2010 but its keynote speakermore than 40 conference and panel sessions, featuringandpanel session remains available on demand untilover 100 expert speakers, including Paul Otellini, May 2011 at www.comdexvirtual.comCEOofIntel.For more information go to www.comdexvirtual.com28 United Business Media Annual Report and Accounts 2010 31. Online Adjusted Operating Prot** During the year we ran 103 virtual events (2009: 38) in Other is principally driven by good performances Section 1: 2010 ReviewReects high levels ofand of the 65 additional virtual events, 30 were for in Farmers Guardian and Daltonsbusiness.cominvestment into innovations for theTechnology community. Thegrowth in Health As referenced above the Online segmentthis dynamic media segment. revenues, although relatively modest is derived from launched a number of new products during 2010.agood online performance by health in the US. Thebusiness also made improvements in the existing1.3m Thedeclines in Built Environment are largely driven