2002 PRELIMINARY RESULTS. Continuing turnover (£m) Continuing operating profit* (£m) EPS * (p)...
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Transcript of 2002 PRELIMINARY RESULTS. Continuing turnover (£m) Continuing operating profit* (£m) EPS * (p)...
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2002 PRELIMINARY RESULTS2002 PRELIMINARY RESULTS
Continuing turnover (£m)
Continuing operating profit* (£m)
EPS * (p)
Dividend per share (p)
Net cash (£m)
Financial Results Financial Results Twelve months to 31 December
20022002 2001 Change%
*before exceptionals and amortisation of intangibles
930.5
81.7
17.9
12.0
49.3
793.4
64.9
16.5
7.0
93.5
(14.7)
(20.6)
(7.8)
(41.7)
89.7
2
3United Business Media
2002 Review2002 Review
Strong performances in CMP Asia, CMP Information, UAP and NOP UKProfit up 32.3 per cent to £44.9m
CMP Media revenues stabilising Profit in Q4
Profit from US businesses down 58.1 per cent to £20.0mContinuing revenue and margin pressure at PRN and NOP
Margins 8.2 per cent (8.8 per cent)H2 7.2 per cent (5.0 per cent)
4United Business Media
2002 Review2002 ReviewFurther major action on costs
£180m annualised cost savings since 2000
Market share gains, and yields holding up relatively well
Cash conversion around 140%Tight controls of working capital and capexStronger balance sheet, £94m net cash positive
Continuing commitment to organic investment £20m on new product developmentOver 40 major launches
5United Business Media
Trading OutlookTrading Outlook
Continued tough trading conditionsJan/Feb revenue generally following late ’02 trends
Professional media margins to benefit from cost savingsNews distribution still under pressureMarket research underpinned by continuous businesses
Revenue outlook clouded by geopolitical concerns
Managing costs in line with revenues
6United Business Media
2003 Performance and Growth2003 Performance and Growth
Group margin boosted by efficient cost base10 per cent target
Maintaining new product investment
Targeting further market share
Strong cash generation
Building value in investment portfolio
Share buyback programme
7
FINANCIAL REVIEW
8United Business Media
Continuing turnover (£m)
Continuing operating profit* (£m)
Discontinued operating profit* (£m)
Total operating profit* (£m)
Net Interest (£m)
Other finance expense (FRS17)
PBT * (£m)
Taxation* (£m)
EPS * (p)
Dividend per share (p)
Financial Results Financial Results Twelve months to 31 December
20022002 2001 Change %
*before exceptionals and amortisation of intangibles
930.5
81.7
(20.1)
61.6
35.8
(1.5)
95.9
(25.0)
17.9
12.0
793.4
64.9
-
64.9
10.1
(2.1)
72.9
(16.0)
16.5
7.0
(14.7)
(20.6)
-
5.4
-
-
(24.0)
36.0
(7.8)
9United Business Media
Operating profit (before goodwill & exceptionals)
Depreciation
Capex
Working capital/other
Operating cash inflow
Cash conversion
20022002£m£m
64.9
23.2
(10.9)
13.8
91.0
140.2%
Cash ConversionCash ConversionTwelve months to 31 December
Further Cash FlowsFurther Cash FlowsTwelve months to 31 December
Operating cash inflow
Dividends paid
B shares
Tax refunded
Net interest received
Investments (including channel five)
Payments relating to property and redundancy
Payments relating to prior year disposals
Foreign exchange
Other
Increase in cash in the period
20022002£m£m
91.0
(14.4)
(7.4)
15.3
4.4
(13.6)
(35.1)
(19.0)
24.0
(1.0)
44.2 10
£ Cash
£ Debt
$ Cash (in £)
$ Debt (in £)
Other
Net Cash
Channel five
Net Interest
Other financial expenses - FRS17
P&L Interest
Breakdown of Net Cash and Breakdown of Net Cash and Interest Interest
Interest %
31 Dec 2002£m
Interest£m
245
(16)
480
(637)
22
94
156
4.0
3.8
2.2
3.0
1.0
11.0
(2.1)
16.9
(24.4)
0.1
8.8
10.1
(2.1)
8.0 11
12United Business Media
Exceptional ItemsExceptional Items
Impairment provisionsCMP Media £60mNOP World £37mPR Newswire £17m
Property
Payments relating to prior year disposals
20022002£m’s£m’s
114.2
30.0
14.0
158.2
13United Business Media
Segmental AnalysisSegmental AnalysisTwelve months to 31 December
20022002£m£m
20022002£m£m
Group TurnoverGroup Turnover Operating Operating ProfitProfitChange
%Change
%Underlying
%Underlying
%
CMP Media
CMP Asia
CMP Information
UAP
PR Newswire
NOP World
Total Continuing
252.4
51.1
113.4
58.1
105.4
213.0
793.4
(31.9)
4.3
(13.3)
1.2
(17.7)
9.3
(14.7)
(9.4)
13.7
12.7
12.7
17.3
17.9
64.9
(20.5)
2.2
84.1
35.1
(51.7)
(25.4)
(20.6)
(28.7)
5.2
(4.2)
1.9
(13.8)
(10.6)
(16.1)
(16.4)
6.5
187.5
35.4
(44.4)
(21.0)
(8.9)
14United Business Media
Margin Performance Margin Performance
H1 2001%
H1 2002%
H2 2001%
H2 2002%
TOTAL 12.2 9.1 5.0 7.2
CMP Media 6.5 (6.2) (14.6) (0.9)
CMP Asia 34.0 30.2 20.9 23.4
CMPi 0.7 11.9 10.2 10.4
UAP 16.3 23.4 16.5 20.3
PR Newswire 29.7 21.4 25.7 10.4
NOP World 13.9 11.3 11.3 5.7
15United Business Media
InvestmentInvestment
Net debt capacity around £400mminimum interest cover of 5 timesconservative approach to financing
Acquisition financial criteria
cost of capital 8%generally eps enhancing first full year
Review buy backs and special dividends
Investment targets
2 to 4 year payback
16United Business Media
Investment Performance Investment Performance
Mixed performance from acquisitions
cost synergies delivered
revenues impacted by general US economic weakness
£124m acquisitions in 2001
RoperASW (Custom) under performed
Allison-Fisher (Auto) strong performance
KSS in line with acquisition plan
New product initiatives
Started well in a difficult market – steady pipeline for 2003
17United Business Media
Pensions Pensions
Introduced FRS17
Pension deficit of £90.9m (£41.0m)
2002 £6.8m (£4.2m) charge
Currently forecast to be around £12m in 2003
Approx 50:50 split between bonds and equities
18United Business Media
20022002£m£m
2001£m
Change%
Turnover
Operating profit
Trade Investments : FiveTrade Investments : Five
Twelve months to 31 December - Unaudited
244.8
(4.5)
198.1
(48.3)
23.6
90.6
Audience share up to 6.5% (5.9%)
Advertising share up to 7.5% (6.4%)
Net book values:Five £120mOther investments £50m
19
OPERATIONAL REVIEW
20United Business Media
Performance Scorecard 2002Performance Scorecard 2002Against UBM internal targets
COST REDUCTIONS
MARKET SHARE
NEW PRODUCT
DEVELOPMENT
CMP Media
CMP Asia
CMPi
UAP
PR Newswire
NOP World
Constantly Improving Operational Constantly Improving Operational EfficiencyEfficiencyCost savings Vs 2000 fixed cost base
August 2001
March 2002
August2002
£60m
£110m
£165m
700Staff
1400Staff
1900Staff
21
2150Staff
£180m
February
2003
22United Business Media
Shares of Major MarketsShares of Major MarketsCMP Media – strong growth
Ad page volume 28.4% Vs 24.9% in 2001
NOP World – assessment of market share trendsUK - holding share US custom and healthcare – lost groundUS media – robust, all major contracts renewedWorldwide automotive – solid growth
PR Newswire – gaining ground Global wire volumes: gained 2.2% to 40.0%US: holding firm YOY at 52% of earnings release volumesUK: from zero to over 10% of regulatory releases
Product DevelopmentsProduct Developments
Optimize
NetseminarsReal Time CME
CommunicationsDesign ConfPR Audit
IntraIfsec Shanghai
Rental & Staging
Matech LeatherChina
Beauty Japan
OMADisclose
MultiVu
XinhuaFinancial
News
MRI National Study - Hispanic
Tech Confidence Barometer
NOP Consulting
LifeMatrix
RoperASW Consumer Online PanelScripdriver
OMA Hispanic
Daltonsbusiness.com
CME NOP Health
Databases
Shared Services
Automotive Intentions Europe
Thomson Alliance
ProfNet
Tbutton
eWatch
Influential Americans
NewsNewsDistributionDistribution
ProfessionalProfessionalMediaMedia
Market Market ResearchResearch
24United Business Media
Operating Profit
Professional MediaProfessional Media: CMP : CMP MediaMediaTwelve months to 31 December
Turnover
(9.4) (7.8) (20.5)
20022002£m£m
2001£m
Change%
Underlying%
252.4 370.4 (31.9
)(28.7
)
(16.4)
25United Business Media
CMP Media CMP Media 2002 Review
Delivered August revenue forecasts
Moved into operating profit in Q4
Ad page volumes down 20 per cent
Yield impact held to only a 6 per cent decline
Market share up to 28.4 per cent (from 24.9 per cent)
Revival in reseller titles, some stability in other markets
Healthcare grew 3 per cent despite market conditions
Marketing spend up and client consolidation unwound
New products: £7m investment and £7m revenue
26United Business Media
CMP MediaCMP MediaActions and outlook Actions and outlook
Not planning on tech revenue growthAiming to hold yields
Further cost savings to flow throughTargeting margin improvements
Ongoing commitment to new product development
27United Business Media
Operating Profit
Professional MediaProfessional Media: CMP : CMP AsiaAsiaTwelve months to 31 December
20022002£m£m
2001£m
Change%
Underlying%
Turnover 51.1 49.0 4.3
13.7 13.4 2.2 6.5
Solid progress on revenue, profit and marginsLaunches (£2.3m) boosted sq meterage, up 12.6 per centUpgraded sales and marketing programmeIntegration of KSS in Japan strengthened portfolioFurther 12 launches scheduled for 2003
5.2
Operating Profit
Professional MediaProfessional Media: CMP : CMP InformationInformationTwelve months to 31 December20022002
£m£m2001£m
Change%
Underlying%
Turnover
113.4 130.8 (13.3)
12.7 6.9 84.1 187.5
Revenue down due to ad market weakness and closures
Profits up 84% and margins doubled
Extensive continuous improvement programme
Significant cost reductions and repositioning of products
7 new products developed
Events business stronger - saw positive growth
(4.2)
29United Business Media
Professional Media: UAPProfessional Media: UAPTwelve months to 31 December
Modest revenue growth
Profit boosted by over 30 per cent
Substantial cost saving programme
Every title delivered a profit increase
58.1 57.4 1.2 1.9
20022002£m£m
2001£m
Change%
Underlying%
Turnover
12.7 9.4 35.1 35.4Operating Profit
30United Business Media
PR Newswire - News PR Newswire - News DistributionDistributionTwelve months to 31 December
20022002£m£m
2001£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
95.6
9.8
105.4
18.6
(1.3)
17.3
16.4%
116.3
11.7
128.0
35.8
0.0
35.8
(17.8)
(16.2)
(17.7)
(48.1)
-
(51.7)
(11.8)
(31.1)
(13.8)
(38.9)
-
(44.4)
Margin
31United Business Media
US message volume down 11 per cent
Revenue per message up 4 per cent
H1 market conditions continued
Earnings releases down 15 per cent, M&A down 24 per cent
Regulatory releases length up 10 per cent
Discretionary products under pressure but
MultiVu, OMA and other launches generated £6m revenue
News DistributionNews Distribution2002 Review
32United Business Media
Impact from Sarbanes-Oxley and Corporate Governance
Further product developments
Already launched Premium Disclose – with US distribution
Target private organisations as well as listed
Develop ‘policy newswire’
Sales force restructuring – prioritise resources to major clients
Holding rate card
Adding functionality and holding prices
News DistributionNews DistributionActions and outlook
33United Business Media
NOP World - Market NOP World - Market ResearchResearchTwelve months to 31 December
20022002£m£m
2001£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
Margin
138.1
74.9
213.0
12.5
5.4
17.9
8.4%
125.3
69.6
194.9
19.9
4.1
24.0
10.2
7.6
9.3
(37.1)
30.9
(25.4)
(16.8)
(1.7)
(10.6)
(36.9)
42.4
(21.0)
34United Business Media
NOP WorldNOP World2002 Review
Deterioration in US healthcare and custom markets
action on cost
revitalised product line
SMC improvement in Q4
Strength in US syndicated media and in automotive
Strength in UK financial and healthcare
UK market slowing in H2
Continuing rapid growth in online
from $7m to $30m in healthcare alone
introduced 80,000 strong RoperASW panel
New launches including LifeMatrix
already generated £1m revenue
35United Business Media
NOP WorldNOP WorldActions and outlook
Further cost containment and improved productivity
Healthcare sector stabilising
No major syndicated media contracts up for renewal in 2003
Grow market share
Product development
• Backed by detailed client research
• e.g. launch of Scripdriver
Aggressive new marketing campaign
• New CMO appointed
36United Business Media
United Business MediaUnited Business MediaStrategic Priorities
Improving performance
Margin target 10 per cent
Maintaining yields
Growing market share
Financial Strength
Delivering high cashflow
Building and monetising investment portfolio
Investment in growth
Continuing investment in new products
Monitoring acquisitions
37