Post on 26-Mar-2015
1
2001 INTERIM RESULTS
ANALYST PRESENTATION
Market Research News Distribution
Professional Media
2
Very tough trading conditions
High tech ad decline / US economic slowdown
Revenue down 4%
Operating profit & EPS down 38%
£60m savings secured for 2001: £15m impact in
H1
Market share gains in all core businesses
Financial & Operational Financial & Operational SummarySummary
3
£250m cash balance after £1.25bn share buy back
Building market leading positions
Revenue and cost synergies from group operations
Acquisitions: total $150m
PRN: Cyperus ANP
NOP: Allison Fisher Roper Starch
Development SummaryDevelopment Summary
4
$88m : 1.3 times 2000 revenue of $69m
Leading consumer trends consultancy
Consumer, healthcare, automotive, IT, financial
50/50 syndicated Vs custom
Significant costs & revenue synergies
New growth opportunities
Roper products to new geographies and markets
NOP World products to Roper client base
Earnings accretive in first full year
Acquisition of Roper StarchAcquisition of Roper Starch
5
UBM aims to become a key provider of market information to high growth sectors including
Information TechnologyHealthcareMedia
United’s StrategyUnited’s Strategy
6
Events & Conferences
Syndicated Research
Customised Research
Consultancy Services
United PresenceUnited Presence
ITIT HealthHealth MediaMedia
Editorial & Advertising
Educational & Training
News Distribution & Monitoring
7
CMP June in line with expectations
Not planning on recovery in US in 2001
Quality of CMP titles maintains yield and boosts market
share
Market research good progress
Healthcare and syndicated buoyant
News distribution revenues ahead
profits checked by higher investment
2001 savings of £60m weighted to H2
Continued investment in new products
Current Trading & OutlookCurrent Trading & Outlook
8
2001 INTERIM RESULTS
FINANCIAL REVIEW
Market Research News Distribution
Professional Media
9
489.4
31.3
90.8
(19.1)
71.7
11.0
Continuing turnover (£m)
Continuing operating profit (£m)
Interest (£m)
Post Interest Cont’ op’ profit (£m)
Discontinued operating profit (£m)
PBT * (£m)
EPS * (p)
Dividend per share (p)
Financial Results Financial Results Six mSix months to 3onths to 30 June0 June
2001 2000 Change %
511.6
95.6
(39.8)
55.8
82.0
137.8
18.8
11.0
(4.3)
(37.8)
-
62.7
-
(48.0)
(37.2)
-
11.8
59.5
*before exceptionals and amortisation of intangibles
10
35.4
21.2
10.6
6.0
(13.7)
(19.1)
302.3
66.9
76.1
29.2
14.9
1.3
Profit & LossProfit & Loss Six mSix months to 3onths to 30 June0 June
(49.9)
1.0
7.1
(33.9)
(16.7)
(3.8)
(37.8)
-
2001£m
2001£m
Group Turnover Operating ProfitChange
%Change
%Underlying
%Underlying
%
Professional Media
News Distribution
Market Research
Business Services
Consumer Media
Online
Total Continuing
Discontinued
(51.4)
(3.9)
5.4
(36.1)
(16.7)
(2.8)
(39.4)
-
(12.3)
1.9
7.9
(7.4)
(7.9)
(29.9)
(8.3)
-
(9.2)
11.1
13.9
(3.2)
(7.9)
(25.9)
(4.3)
-
445.3 67.2
489.4 59.5
• Offline Margin 15.4% (22.1%) •
11
210.4
24.1
67.8
25.9
9.1
0.4
11.7
Professional MediaProfessional MediaSix mSix months to 3onths to 30 June0 June
2001£m
2000£m
Change%
UnderlyingUnderlying%%
Turnover
CMP Media
CMP Asia
CMP Information
Total
Operating Profit
CMP Media
CMP Asia
CMP Information
Total
Margins %
(17.9)
1.1
5.0
(12.3)
(57.0)
(4.3)
(86.7)
(51.4)
(12.2)
1.7
(2.3)
(9.2)
(55.8)
16.7
(90.7)
(49.9)
239.7
23.7
69.4
332.8
58.6
7.8
4.3
70.7
21.2
302.3
35.4
1231.7
News DistributionNews Distribution Six mSix months to 3onths to 30 June0 June
2001£m
2000£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
Margins %
52.5
7.7
60.2
18.8
2.2
21.0
34.9
11.1
1.0
1.9
(3.9)
66.9
21.2
56.4
10.5
20.4
0.8
1313.9
Market ResearchMarket Research Six mSix months to 3onths to 30 June0 June
2001£m
2000£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
Margins
40.6
26.2
66.8
7.3
2.6
9.9
14.8
13.9
7.1
7.9
5.4
76.1
10.6
44.4
31.7
7.6
3.0
14
United TodayUnited TodaySix mSix months to 3onths to 30 June 20010 June 2001 Continuing offline turnoverContinuing offline turnover
By Ad % / Non-Ad %By Ad % / Non-Ad %
High Tech Advertising = 17% profits
26
15
59
HighTechAd’
Other Ad’
Non Advertising
15
1,553.0
(1,250.5) 61.7
(53.0)36.1
28.0 (20.1) (56.8)
(18.5)(29.2)
250.7
Opening cash
Less return of capitalB shares outstandingInvestmentsInterest receivedProfit less net working capitalCapexDividend paidTax paidOther
Closing cash
CashflowCashflowSix mSix months to 3onths to 30 June0 June
2001£m’s
16
2001 INTERIM RESULTS
Operating Review
Market Research News Distribution
Professional Media
17
Saved £15m in H1
Secured £60m in 2001
700 staff, or 9% headcount reduction
A third of savings relate to staff
Reductions also include
• Marketing, CMPnet structure
• Office consolidation, administration, systems
Substantial group initiatives in hand for 2002/03
Action on Costs Action on Costs Group WideGroup Wide
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REVENUE
Share client database for cross promotion and selling
• NOP uses database to create panels
Best practice
• PRN sales training to NOP
• PRN news distribution & webcasting for all tradeshows
COSTS
Central review: economies of scale and remove duplication
Single networks and common webhosting
Standard group applications, shared IT services
Synergies From Group Synergies From Group OperationsOperations
19
79
14
70
72
71
14
47
56
Professional MediaProfessional MediaSix mSix months to 3onths to 30 June0 June
Publications%
Events%
Turnover
CMP Media
CMP Asia
CMPi
Total
Operating Profit
CMP Media
CMP Asia
CMPi
Total
21
86
30
28
29
86
53
44
20
Monthly Market Share AnalysisBy Ad Page Volumes
January - December 2000(Based on Ad Pages)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Janu
ary
Febr
uary
March
April
May
June July
Augu
stSe
ptem
ber
Octob
erN
ovem
ber
Dec
embe
r
Jan-01
'Feb
-01
'Mar 01
'Apr 01
'May
01
'Jun 01
29.5% CMP
8.9% Ziff10.4% IDG
10.5% Cahners
5.5% Penton
Source: IMS/Auditor
CMP – High TechCMP – High Tech
2001
Ad Page Volumes in JuneCMP Down 24%Ziff Davis Down 39%IDG Down 52%
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Professional Professional Media Media
CMP Media Yield maintained
Quality of Brands Reinforced
Launch programme: up to $10m
Launch 2 new publications in autumn
• Extend proven brands to new markets
Digital database
• Launch platform for new products
Inside Magazine
M Business on target
22
Professional Professional Media Media
No change in number of advertisers
Cut backs in level of advertising
Revenue from top 25 broadly as in 2000
Medium & smaller companies reduced
Resilience of core client business
Demonstrates quality of CMP brands
23
Market share: net gain of 70 listed companies
Underlying revenue ahead
US revenue per message up 12%
Reg FD driving message length, secured price increase
US message volume down 12%Earnings releases up 9% / Reg FD helps trading updates up over 50%M&A, IPO’s and New products all down approx 40%
Downturn in discretionary masking significant underlying growth in non-discretionary business
Measuring & monitoring now 13% (11%) of revenue
News Distribution News Distribution
24
Increasing market share
NOP UK revenue growth firmly ahead of UK market
MRI performing strongly, increased client base
Healthcare buoyant, new products
E-market for pharmaceuticals
Sales Force Assessor
MMI & ePocrates strategic alliance
DTC e-monitor
Market Research Market Research
25
Costs cut
Short term mitigation
Drive synergies
Shared infrastructure
New revenue streams & new products
Integration of acquisitions
Continuing to invest to drive market share
Operating SummaryOperating Summary
Tough market
Firm action on costs
Market share gains in all businesses
Investing to drive future revenue growth
and take further market share
27
2001 INTERIM RESULTS
Market Research News Distribution
Professional Media
28
United TodayUnited TodaySix mSix months to 3onths to 30 June0 June Continuing offline by %Continuing offline by %
20012001
64 1416
TurnoverTurnover Operating ProfitOperating Profit
4829
14