FY FY16 results presentation 24 November 2016 Andrew Rashbass, CEO - - PowerPoint PPT Presentation

24 November 2016 Andrew Rashbass, CEO

FY FY16 results presentation

Page 2

Strategy on track Performance in line with the Board’s expectations even though trading conditions tougher for some businesses than anticipated Benefits from a strong dollar reinvested in the business to accelerate the strategy Co Context

Page 3

Strategy on track

Page 4

St Strat ategic journey

B2 B2B B Media 1.0

Print Stand-alone events Monologue Advertising central Product-centric

B2 B2B B Media 2.0

Digital Networking events Dialogue Subscriptions Customer-centric

B2 B2B B Media 3.0

Embedded in workflow/platforms Trading events/ memberships Part of the customer industry Licensing Solution-centric

Page 5

Eu Euro romoney is progr gressing well in its transformation to B2B Media 3.0: examples

B2 B2B B Media 1.0 B2 B2B B Media 2.0 B2 B2B B Media 3.0

• Content

conferences

• Magazine
• Magazine
• Networking

events

• Digital distribution
• Events
• Newsletter
• Awards
• Trading events
• Fleet valuation
• Counterparty risk

ratings

Page 6

Eu Euro romoney is progr gressing well in its transformation to B2B Media 3.0: examples

B2 B2B B Media 1.0 B2 B2B B Media 2.0 B2 B2B B Media 3.0

• Magazine
• Print publications
• Magazine
• Digital
• Subscriptions
• Conferences
• Digital distribution
• Digital
• Subscriptions
• Events
• Memberships
• Capital introduction

platforms

• Stock picking platform
• Price reporting agency

Page 7

St Strat ategy: y: how we think k ab about the busi siness ss: four quad adran ants

+

• +
• Cycle

Structure

Prepare for upturn Use the time wisely Disinvest Invest

• Batten down the hatches
• Protect and enhance competitive position
• Careful, selective investment for when the

cycle turns

• Opportunistic on revenue opportunities
• Tight cost control
• Fix any operational deficit
• New product development
• Sales and marketing
• Acquisition
• Fix any operational deficit
• Modest investment to move to top-right

quadrant above

• Maximise shorter-term profit and cash
• Fix any operational deficit
• Consider divestment
• Maximise shorter-term profit and cash
• Divest
• Prevent future build-up

Page 8

Y-ax axis of quad adran ants

B2 B2B B Media 3.0 B2 B2B B Media 2.0 B2 B2B B Media 1.0

+

• Structure

Embedded in workflow/platforms, trading events/memberships, part of the customer’s industry, licensing, solution-centric Digital, networking events, dialogue, subscriptions, customer-centric Print, stand-alone events, monologue, advertising central, product-centric

Three pillars of strategy gy

Ac Actively ma manage the portfo folio In Invest around big theme mes Transfo form m th the operating mo model

Page 5

Page 10

Them Themes: where where we we pl play

Marke ket attributes Theme mes Semi-opacity Inefficiency Challenged business models Disruption

• Price discovery (eg metals,

air finance) 1.

• Asset management

2.

• Counter-party risk (eg in

insurance) 3.

• Telecoms

4.

Page 11

In Invest around big themes: exa xamples

BCA, NDR, IIM/IIN New product launches/bolt-on acquisitions (CEIC Flex, II Research All-America Trading Team Survey, AFJ Fleet Database) Metal Bulletin PRA strategy Telecoms growth strategy Thought Leadership/Rival Advocacy Acquisitions: MB FastMarkets, Reinsurance Security; pipeline filling with interesting

• pportunities

Page 12

Operating g model

Custome mers Bu Business mo model Ba Barriers to entry

• Larger wallet than retail customers
• Relatively price inelastic
• Sophisticated & knowledgeable

− Understand the value of the service in order to remain competitive or compliant

• Repeat customers

− Depend on product or service

• Often similar across geographies

− Information needs not dissimilar Scalable & cash generative

Create once, sell many Recurring revenues Pricing power Low capital intensity High operating leverage High margin Strong, sustained earnings and cash generation

• Strong brands
• Long-standing relationships between

buyers & sellers

• Network effects
• Developed infrastructure, difficult to

replicate

Page 13

Transform the operating g model: examples

Price optimisation: BCA, NDR, Metal Bulletin, trading events Faster product development New marketing approach Streamlining of divisions/management structure Realignment of incentives with strategic objectives Global HR and GC appointments Investment in China team Increased investment in technology leadership and development teams

Page 14

Ac Actively manage the portfolio: examples

Bu Buy Acquisitions of FastMarkets and Reinsurance Security Strong acquisition pipeline especially Telecoms Balance sheet provides significant acquisition firepower Se Sell/ ll/restructure Sale of Gulf Publishing/Petroleum Economist Sale of II Searches Restructuring of Euromoney Learning Solutions

24 November 2016 Colin Jones, Finance Director

FY FY16 results presentation

Page 16

£m FY15 FY FY16 Change Revenue 403.4 403. 403.1 0% Adjusted PBT1 107.8 102. 102.5 (5%) Statutory PBT1 123.3 43. 43.9 (64%) Adjusted EPS1 70.1p 66. 66.5p 5p (5%) Dividend 23.4p 23. 23.4p 4p = Net cash 17.7 83. 83.8 +£66.1m

1. As reconciled in appendix to Preliminary Statement

Re Results snapshot1

Page 17

Reported revenue unchanged at £403m, largely due to favourable US$ Underlying1 revenue down 4%, largely due to disinvest quadrant – strategy addressing this Operating margin down due to disinvest quadrant, as well as investment Strategy already driving improvement in subscription revenue growth rate Favourable US$ has allowed accelerated investment in strategy Strong operating cash flows and balance sheet firepower Dividend maintained despite earnings decline

Key message ges

1. Excludes acquisitions/disposals, timing differences and at constant exchange rates

Page 18

Sta tatuto tutory y profi fit

43. 43.9 102. 102.5 16. 16.7 7 37. 37.3 3 4. 4.4 4 0. 0.2 2 Adjusted P PBT Acquired i intangible a amo mortisation Ex Exceptional i items ms Share o

• f a

f associates a amo mortisation Ot Other er Statutory P PBT

Page 19 1. See note 3 of the Preliminary Statement for fuller description

Ex Excep eptional item ems

£m FY15 FY FY16 Profit on disposal of assets 55.1 7. 7.1 Goodwill and intangibles impairment (18.5) (2 (28.7) Tax provision

• (7

(7.9) Restructuring and other (3.2) (7 (7.8) 33.4 (3 (37.3)

Page 20

Underlying tax rate 18% consistent with 20151 Underlying deferred subscription revenue up 3%1 Balance sheet strength: – Net cash £83.8m at September 30 – Underlying cash conversion 105% (2015: 104%)1 – Final (and full-year) dividend maintained (16.4p/23.4p) – actual cover 2.8x

1. See appendix for further details

Ca Cash flow, balance ce sheet and key financi cial measures

Page 21

Strong g cash flows in FY16

17. 17.7 5. 5.6 11. 11.2 29. 29.9 3. 3.3 16. 16.7 3. 3.7 1. 1.3 108. 108.8 83. 83.8 Net c cash a at Sept 3 30 2 2015 Ca Capex M& M&A Di Divid idends FX FX/Othe her Net t tax Ex Exceptional items ms Worki king ca capital Operating c cash infl flow Net c cash a at Sept 3 30 2 2016 Cash Moveme ment (£m)

FY FY16 oper

• perating cash

h con

• nversion 105%

Page 22 1. As reconciled in appendix to Preliminary Statement

Opera perating res results

£m FY15 FY FY16 Change Revenue 403.4 403. 403.1 0% Adjusted operating profit1 104.2 101. 101.4 (3%) Adjusted operating margin 25.8% 25. 25.2% 2% (0.6%) Adjusted PBT1 107.8 102. 102.5 (5%)

Page 23

FY FY16 reported revenue: : drag from

• m disinvest quadrant of
• ffset by favou
• urable FX

FX

403. 403.1 403. 403.4 18. 18.1 1 4. 4.6 6 16. 16.8 8 5. 5.7 7 2. 2.7 7 FY FY15 FX FX Net M M&A Di Disin invest In Invest Ot Other er FY FY16

Page 24 1. Excludes acquisitions/disposals, timing differences and at constant exchange rates 2. After closed/sold businesses, FX and other revenues

Und nderlying1 re revenue change

Y-o-Y % change FY15 FY16 FY16 H1 H2 H1 H2 Full Year Subscriptions and content 2% 3% 1% 2% 1% Advertising (12%) (9%) (9%) (13%) (11%) Sponsorship 7% (6%) (8%) 1% (2%) Delegates 3% (12%) (18%) (10%) (14%) [Delegates (excl training)] [(1%)] [(10%)] [(13%)] [(2%)] [(8%)] Total2 1%

• 5%
• 6%
• 2%
• 4%

Page 25 1. After closed/sold businesses, FX and other revenues

Re Repor

• rted revenue ch

change ge

Y-o-Y % change FY15 FY16 FY16 H1 H2 H1 H2 Full Year Subscriptions and content 5% 9% 5% 11% 8% Advertising (8%) (4%) (3%) (6%) (5%) Sponsorship 11% (1%) (3%) 10% 4% Delegates 8% (9%) (5%) (5%) (5%) Total1 1% (2%) (2%) 2% 0%

Page 26

FY FY16 rev even enue matri rix by se segment/type1

Positive subscription revenue trend – 58% of total revenue…a record Asset management and pricing, data and market intelligence return to subscription growth but…. Both segments held back by weak advertising Significant drag from banking and finance (especially training) and commodity events

Asset management

132.0

2%

14.3

(7%)

14.3

1%

3.7

6%

0.2 (25%) 164 164.5

1% 1% Pricing, data and market intelligence

89.9

2%

15.2 (10%) 11.1

(6%)

17.2

1%

1.4

0%

134 134.9 (0

(0%) Banking and finance

10.5

(6%)

9.8 (17%) 29.9

(0%)

22.9 (22%) 1.5 (50%) 74. 74.6 (1

(13%) Commodity events

5.7 (12%) 22.9 (19%) 0.6 (19%) 29. 29.2 (1

(18%) To Total

232 232.4

1% 1%

39. 39.3 (1

(11%)

61. 61.0 (2

(2%)

66. 66.7 (1

(14%)

3. 3.7 (3

(32%)

403 403.1 (4

(4%) To Total

N/A N/A

Other Subscriptions/ Content Advertising Sponsorship Delegates

1. See slide 39 for notes and colour key

Page 27

Ad Adjusted op

• perating marg

rgin FY15 25. 25.8% 8% Annualisation of FY15 drivers (Dealogic/property) (0.3%) FY16 drivers: Event timing difference 0.3% Disinvest quadrant (1.6%) FX mix effect 1.5% Investment in strategy (0.5%) Ad Adjusted op

• perating marg

rgin FY16 25. 25.2% 2%

Fall in adjusted operating g margin due to disinvest quadrant and investment

Page 28

FY16 adjusted operating g profit: favourable FX allowed accelerated investment in strategy gy

101. 101.4 104. 104.2 11. 11.1 1 1. 1.3 3 11. 11.4 4 2. 2.7 7 1. 1.5 5 FY FY15 FX FX Net M M&A Di Disin invest In Invest Ot Other er FY FY16

Page 29

£11.1m year-on-year FX benefit to adjusted PBT:

– GBP/USD rate fell 14 cents – £6.7m FX benefit on translation of overseas profits – £1.9m FX gain on balance sheet revaluation (FY15: £2.5m loss) including a one-off £1.4m gain on the Dealogic transaction

Current GBP/USD rate provides further FY17 upside

Im Impact ct of favourable FX

GB GBP/USD rate

FY15 FY16

Page 30 1. Excludes acquisitions/disposals, timing differences and at constant exchange rates

Key Key takeawa ways

We are turning ng the business We are predomina nately a US$ busine ness Str Strong cas ash flows an and fav avourable FX give us confidenc nce to invest in in the he fut utur ure

FY16 underlying1 revenue growth H1 H2 (6%) (2%) FY16 reported revenue growth H1 H2 (2%) 2% Underlying operating cash conversion FY15 FY16 104% 105%

Page 31

Outlook & summary

Page 32

Re Reported book

• ok of
• f business

October November December January February March April May June July August September

Subscription book of business at reported GBP/US$ rate

2014 2015 2016 2017

x +7.8%

Page 33

Benefits from new strategy gy coming g through gh earlier than an anticipat ated

October November December January February March April May June July August September

Underlying subscriptions book of business at constant GBP/US$ rate

2014 2015 2016 2017

x +1.5%

Page 34

On track with strategy despite trading conditions tougher than expected Capital being rigorously allocated: – Sale of bottom-left-quadrant businesses: Gulf Publishing, Petroleum Economist, II Searches – Restructuring of Euromoney Learning Solutions – Targeted investment: acquisitions, pricing projects, faster product development, China, etc Using FX benefit to invest in accelerating the strategy Markets remain challenging and political uncertainty FX remains favourable Strong balance sheet and cash flow Strategy: FY17 year of transition

Outlo utlook & summ ummary

Page 35

Q&A

24 November 2016 Andrew Rashbass, CEO

FY FY16 results presentation

Appendix 1: New segmental reporting

Slide 38

Ban Banking an and finance

Se Segment ke key y bran ands s – se segment nts reali aligne ned wit ith the strategy gy

Asset mana nagement Pr Pricing, data and market intelligenc nce Co Commodity events

Page 39

FY FY16 rev even enue matri rix by se segment/type

No Notes

• The absolute £ totals represent reported figures.
• The percentages represent underlying growth rates, excluding

acquisitions/disposals, timing differences and at constant exchange rates.

• Total segment revenue of £403.1m excludes FX on forward contracts

(-£5.2m) and sold businesses (+£5.1m). Ke Key

• Dark green – growth more than 2%
• Light green – growth of 0% to 2%
• Amber – decline of 0% to -1%
• Pink – decline of -1% to -5%
• Dark red – decline more than -5%
• The white cells have not been colour-coded due to their size

Asset management

132.0

2%

14.3

(7%)

14.3

1%

3.7

6%

0.2 (25%) 164 164.5

1% 1% Pricing, data and market intelligence

89.9

2%

15.2 (10%) 11.1

(6%)

17.2

1%

1.4

0%

134 134.9 (0

(0%) Banking and finance

10.5

(6%)

9.8 (17%) 29.9

(0%)

22.9 (22%) 1.5 (50%) 74. 74.6 (1

(13%) Commodity events

5.7 (12%) 22.9 (19%) 0.6 (19%) 29. 29.2 (1

(18%) To Total

232 232.4

1% 1%

39. 39.3 (1

(11%)

61. 61.0 (2

(2%)

66. 66.7 (1

(14%)

3. 3.7 (3

(32%)

403 403.1 (4

(4%) To Total

N/A N/A

Other Subscriptions/ Content Advertising Sponsorship Delegates

Page 40

FY FY16 rev even enue and d pro profit matri rix – ne new segme ment ntal l reporti ting ng

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Asset management 132.0 14.3 14.3 3.7 0.2 164 164.5 55. 55.9 Pricing, data and market intelligence 89.9 15.2 11.1 17.3 1.4 134 134.9 44. 44.3 Banking and finance 10.5 9.8 29.9 22.9 1.5 74. 74.6 10. 10.9 Commodity events

• 5.7

22.9 0.6 29. 29.2 8. 8.0 Total al segme ment revenue 232 232.4 39. 39.3 61. 61.0 66. 66.8 3. 3.7 403 403.2 119 119.1 Closed/sold businesses 5. 5.1 0. 0.2 FX hedges (5 (5.2) (3 (3.3) Corporate costs

• (1

(14.6) To Total reve venue/ad adjusted

• perating profi

fit 403 403.1 101 101.4

Page 41

FY FY16 rev even enue and d pro profit matri rix – ol

• ld segmental reporting

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Research and data 132.6 0.1 0.5 1.8 0.4 135 135.4 51. 51.5 Financial publishing 36.4 27.5 5.6 5.0 0.5 75. 75.0 16. 16.6 Business publishing 28.2 11.7 7.7 12.6 1.0 61. 61.2 21. 21.6 Conferences, seminars and training 35.2

• 47.2

47.4 1.8 131 131.6 29. 29.4 Total al segme ment revenue 232 232.4 39. 39.3 61. 61.0 66. 66.8 3. 3.7 403 403.2 119 119.1 Closed/sold businesses 5. 5.1 0. 0.2 FX hedges (5 (5.2) (3 (3.3) Corporate costs

• (1

(14.6) To Total reve venue/ad adjusted

• perating profi

fit 403 403.1 101 101.4

Page 42

FY FY15 rev even enue and d pro profit matri rix – ne new segme ment ntal l reporti ting ng

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Asset management 119.9 14.1 13.2 3.3 0.3 150 150.8 52. 52.0 Pricing, data and market intelligence 84.5 15.9 11.0 16.2 1.4 129 129.0 41. 41.2 Banking and finance 10.4 11.2 27.9 28.2 2.8 80. 80.5 17. 17.3 Commodity events

• 6.4

22.4 0.8 29. 29.6 8. 8.9 Total al segme ment revenue 214 214.8 41. 41.2 58. 58.5 70. 70.1 5. 5.3 389 389.9 119 119.4 Closed/sold businesses 12. 12.9 4. 4.2 FX hedges 0. 0.6 (1 (1.8) Corporate costs

• (1

(17.6) To Total reve venue/ad adjusted

• perating profi

fit 403 403.4 104 104.2

Page 43

FY FY15 rev even enue and d pro profit matri rix – ol

• ld segmental reporting

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Research and data 123.4 0.1 0.6 1.5 0.3 125 125.9 46. 46.4 Financial publishing 34.9 28.8 6.1 4.7 1.6 76. 76.1 18. 18.5 Business publishing 27.3 12.3 7.0 10.9 1.1 58. 58.6 21. 21.2 Conferences, seminars and training 29.2

• 44.8

53.0 2.3 129 129.3 33. 33.3 Total al segme ment revenue 214 214.8 41. 41.2 58. 58.5 70. 70.1 5. 5.3 389 389.9 119 119.4 Closed/sold businesses 12. 12.9 4. 4.2 FX hedges 0. 0.6 (1 (1.8) Corporate costs

• (1

(17.6) To Total reve venue/ad adjusted

• perating profi

fit 403 403.4 104 104.2

Page 44

FY FY14 rev even enue and d pro profit matri rix – ne new segme ment ntal l reporti ting ng

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Asset management 109.1 13.9 13.4 4.0 0.5 140 140.9 51. 51.8 Pricing, data and market intelligence 81.1 15.7 9.0 14.9 1.2 121 121.9 39. 39.4 Banking and finance 10.3 14.2 28.5 29.2 4.3 86. 86.5 22. 22.6 Commodity events

• 5.1

22.5 0.7 28. 28.3 8. 8.4 Total al segme ment revenue 200 200.5 43. 43.8 56. 56.0 70. 70.6 6. 6.7 377 377.6 122 122.2 Closed/sold businesses 26. 26.1 10. 10.0 FX hedges 2. 2.9 1. 1.4 Corporate costs

• (1

(13.8) To Total reve venue/ad adjusted

• perating profi

fit 406 406.6 119 119.8

Page 45

FY FY14 rev even enue and d pro profit matri rix – ol

• ld segmental reporting

£m Subscriptions/ Content Advertising Sponsorship Delegates Other To Total re revenue Ad Adjusted

• per
• perating

profi fit Research and data 118.6 0.1 0.4 1.2 0.5 120 120.8 46. 46.3 Financial publishing 32.5 31.5 5.8 5.5 3.2 78. 78.5 22. 22.0 Business publishing 26.8 12.2 5.6 9.9 0.8 55. 55.3 19. 19.6 Conferences, seminars and training 22.6

• 44.2

54.0 2.2 123 123.0 34. 34.3 Total al segme ment revenue 200 200.5 43. 43.8 56. 56.0 70. 70.6 6. 6.7 377 377.6 122 122.2 Closed/sold businesses 26. 26.1 10. 10.0 FX hedges 2. 2.9 1. 1.4 Corporate costs

• (1

(13.8) To Total reve venue/ad adjusted

• perating profi

fit 406 406.6 119 119.8

Appendix 2: Supplementary information

Page 47

Rev even enue by segm egmen ent

£m FY15 FY FY16 Reported Underlying1 Asset management 150.8 164. 164.5 9% 1% Pricing, data and market intelligence 129.0 134. 134.9 5% (0%) Banking and finance 80.5 74. 74.6 (7%) (13%) Commodity events 29.6 29. 29.2 (1%) (18%) Closed/sold businesses 12.9 5. 5.1

• FX hedges

0.6 (5 (5.2)

• 403.4

403. 403.1 0% (4%)

1. Excludes acquisitions/disposals, timing differences and at constant exchange rates

Page 48 1. Excludes acquisitions/disposals, timing differences and at constant exchange rates

Rev even enue by type pe

£m FY15 FY FY16 Reported Underlying1 Subscriptions and content 214.8 232. 232.4 8% 1% Advertising 41.2 39. 39.3 (5%) (11%) Sponsorship 58.5 61. 61.0 4% (2%) Delegates 70.1 66. 66.8 (5%) (14%) Other 5.3 3. 3.7 (29%) (32%) Closed/sold businesses 12.9 5. 5.1

• FX hedges

0.6 (5 (5.2)

• Total

403.4 403. 403.1 0% (4%)

Page 49 1. Excludes acquisitions/disposals and at constant exchange rates 2. After closed/sold businesses, FX and other revenues

Revenue change ge by quarter (underlying1)

Y-o-Y % change FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subscriptions and content 3% 1% 3% 2% 2% 0% 1% 2% Advertising (6%) (18%) (8%) (10%) (2%) (16%) (14%) (12%) Sponsorship 1% 9% (9%) (3%) (7%) (8%) 9% (7%) Delegates 1% 5% (10%) (14%) (18%) (17%) (9%) (12%) Total2 1% 0% (4%) (5%) (6%) (6%) (1%) (4%)

Page 50 1. After closed/sold businesses, FX and other revenues

Revenue change ge by quarter (rep report rted)

Y-o-Y % change FY15 FY16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subscriptions and content 3% 7% 11% 7% 5% 6% 5% 17% Advertising (4%) (12%) (0%) (7%) 3% (9%) (10%) (3%) Sponsorship (12%) 34% (3%) 2% (5%) (2%) 13% 7% Delegates (2%) 17% (9%) (11%) (18%) 6% (6%) (3%) Total1 (4%) 6% (1%) (4%) (5%) 1% (1%) 4%

Page 51

Operating g profit by segment

£m FY15 FY FY16 Reported Underlying1 Asset management 52.0 55. 55.9 8% (3%) Pricing, data and market Intelligence 41.2 44. 44.3 8% (1%) Banking and finance 17.3 10. 10.9 (37%) (46%) Commodity events 9.0 8. 8.0 (10%) (40%) Closed/sold businesses 4.2 0. 0.2

• Corporate costs

(17.0) (1 (17.9)

• Total

106.7 101. 101.4 (5%) (11%)

1. Excludes acquisitions/disposals, timing differences and at constant exchange rates

Page 52 1. See note 5 of Preliminary Statement

Tax ax1

£m FY15 FY16 Adjusted PBT 107.8 102.5 St Stat atutory tax ax char arge (1 (17.6) (1 (12.9) Other tax adjustments (1.3) (5.2) Un Underlying tax charge (1 (18.9) (1 (18.1) Un Underlying tax ra rate 18% 18% 18% 18%

Page 53 1. See note 4 of Preliminary Statement

Net et finance e costs1

£m FY15 FY16 Interest on debt facility (1.1) (1.3) Interest on cash deposit

• 0.4

Interest on tax (0.4) (0.4) Other 0.2 0.2 Un Underlying net finance cos

• sts

(1 (1.3) (1 (1.1) Acquisition deferred consideration (2.9)

• Acquisition commitments

4.7 (0.6) St Stat atutory net fin inan ance costs 0. 0.5 (1 (1.7)

Page 54 1) FY15 underlying cash conversion restated to include the impact of exceptional items

Ca Cash co conversion

£m FY15 FY16 Ad Adjusted ope

• perating profit

104. 104.2 101. 101.4 Cash generated from operations 109.5 103.8 Exceptional items 3.2 3.7 Timing differences (4.3) (1.4) Un Underlying cash sh generated from op

• perations

108. 108.4 106. 106.1 Cash conversion % 105% 102% Un Underlying cash sh con

• nve

version % 104% 104%1 105% 105%

Page 55

Def efer erre red rev reven enue

FY15 FY16 £m £m Subs Subs Other Subs Subs Other Opening balance 82.0 27.8 86.2 25.9 Assets held for sale

• (0.6)
• Net M&A
• (0.9)

0.7 FX 4.2 0.7 10.1 2.4 Adjusted opening balance 86.2 28.5 94.8 29.0 Underlying movement

• (2.6)

2.6 (3.6) Closing balance 86.2 25.9 97.4 25.4 Un Underlying gro rowth %

• (9

(9%) 3% 3% (12%) %)

Page 56

GB GBP/USD D rate FY1 Y15 and FY1 Y16

Page 57

GB GBP/USD FY1 FY16 FY1 FY15 Average rate 1.41 1.55 Closing rate 1.30 1.51 GB GBP/USD 1¢ moveme ment Revenue +/- £1.4m Profit before tax +/- £0.6m

Imp mpac act of FX