Driving Growth

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Driving Growth Annual Report 2019 IN THE DIGITAL COMMERCE ECONOMY COMMERCE IN THE DIGITAL GROWTH DRIVING Ascential plc Annual Report 2019 Strategic report / Introduction 1 Financial highlights Ascential at a glance 2 Our investment case 4 Our stakeholders 6 REVENUE (£M) ORGANIC REVENUE GROWTH Chief Executive’s statement 12 Market review 16 Business model 18 £416.2m 6.4% Our strategy 20 Key performance indicators 22 1 1 Segmental review 24 ADJUSTED EBITDA ADJUSTED EBITDA MARGIN – Product design – Marketing – Sales £128.5m 30.9% – Built environment & policy Financial review 26 ADJUSTED DILUTED NET DEBT Alternative performance EARNINGS PER SHARE1 LEVERAGE1 measures 33 Risk management 38 Principal risks 40 Our people 46 18.5p 1.4x Corporate and social responsibility report 48 Governance / Operational highlights Chairman’s introduction 58 Board of Directors 60 • Good delivery against our four key priorities for 2019: Governance framework 62 Audit Committee report 67 — Focus on execution: Exceptional performances in Flywheel Digital and WGSN. Nomination Committee Report 75 — Edge: Continuing progress on the integration of Edge due to complete in H1 Directors’ Remuneration Report 77 2020, significant Coca-Cola contract win and encouraging trading in early 2020. Directors’ Remuneration Policy 82 Annual Report on Remuneration 91 — Marketing segment growth. Directors’ Report 98 — Ascential operating model rolled out. Independent Auditor’s Report 102 • Organic growth across all segments. Financial statements / • Acquisition of eCommerce analytics business Yimian in China. Consolidated statement of profit or loss 112 Consolidated statement of “2019 was a satisfying and successful year for Ascential. We advanced our operating other comprehensive income 113 model to ensure our products further align with our customers’ needs in fast paced growth markets and this was reflected in organic growth across all of our segments. Consolidated statement We were particularly pleased with the strength of growth of the Marketing segment of financial position 114 and exceptional performances from WGSN and Flywheel Digital.” Consolidated statement of changes in equity 115 Duncan Painter, Chief Executive Officer Consolidated statement of cash flows 116 Notes to the financial statements 117 Parent Company balance sheet 155 Parent Company statement of changes in equity 156 More information online: Notes to the Company Our website gives you fast, financial statements 157 direct access to a wide range of Company information. ascential.com 1 Refer to glossary of Alternative Performance Measures on page 33 Introduction Ascential is a specialist information data and analytics company that helps the world’s most ambitious businesses win in the digital economy. Our information optimises our customers’ offering on the journey report Strategic from product design through to marketing and sales. The digital economy offers opportunity at a scale we haven’t experienced before. We understand that our customers – the world’s top consumer product and services companies – need the right information to help seize that opportunity. We exist to help our customers win in the digital economy, unlocking the information, insights, connections, data and digital tools our customers need to understand the demands of tomorrow’s consumer and make the decisions that will enable their business to grow and thrive. Ascential also powers political, construction and environmental report Governance intelligence product brands DeHavilland, Glenigan and Groundsure – together comprising the Built Environment & Policy segment. Financial statements Ascential plc Annual Report 2019 / 1 Ascential at a glance COMPANY OVERVIEW Who we are Our mission NUMBER OF OFFICES Ascential is a specialist information, data and To be the number one specialist information analytics company. company enabling companies to win in the digital economy, particularly within the 39 We work with the world’s best consumer digital marketplaces, at product design, We serve customers in over 140 countries, brands and their ecosystems, connecting them marketing and sales. leveraging local knowledge and connections with their customers throughout the purchase for our global audience. journey. This helps them deliver superior Our values products, marketing and sales, at the right Forward thinking: We think big and see time and place, with the right message. the bigger picture – helping our customers NUMBER OF EMPLOYEES translate insight into advantage. We provide business critical information to two Challenging: We are thought-provoking thirds of the world’s 100 most valuable brands*. and persuasive – always searching for 1,997 a better way to get things done. * WPP Kantar's Top Global Brands 2019 We have an experienced and dedicated global Transformative: We are visionary and workforce which we recognise as a key asset confident – making changes happen. of our business. Our growing presence Revenue by geography UNITED KINGDOM 22% OTHER EUROPE 15% UNITED STATES AND CANADA 46% ASIA PACIFIC 11% MIDDLE EAST AND AFRICA 2% LATIN AMERICA 4% Key Ascential Offices 2 / Ascential plc Annual Report 2019 What we do We enable smart decision-making for the world’s most ambitious businesses. In an increasingly complex, digitally-driven world, we help the world’s top consumer product and service companies understand what’s important and how to act on it – today, and in the future. Product Design Marketing Sales Built Environment We deliver trend forecasting We enable customers to We deliver data, analytics and & Policy and insights, enabling create, execute and measure industry-specific intelligence We provide market-leading, customers to design for the effectiveness of marketing to maximise our customers, environmental, construction tomorrow's consumers. campaigns, leveraging creativity digital commerce, optimising and political intelligence, to create a world-class brand distribution strategy, product enabling informed and experience. portfolio, pricing, search and accurate decisions. payments strategy. Revenue Revenue Revenue Revenue report Strategic £86m £136m £158m £36m Provides location intelligence, Combines high-end technology Delivers some of the industry’s enabling property professionals and data science with human The global benchmark for most accurate and actionable to make decisions based on ingenuity, identifying the future creativity. Our awards celebrate sales-driving data, insights and environmental risks such as consumers, the influencers the industry’s best ideas, whilst advisory solutions for global land contamination, flooding and communities and optimal our digital offerings enable brands and retailers looking and ground stability. product and packaging inspiration and measurement to win in today’s eCommerce- design trends essential to around campaign effectiveness. driven world. brands’ success. Partner to construction companies, material Leading advisory firm, sitting Helps its customers, suppliers and organisations, at the intersection of media, predominantly multi-national delivering construction report Governance marketing, advertising, CPGs, optimise their sales on project sales leads, industry entertainment, technology, eCommerce platforms. data, analysis, forecasting and finance. Enables and company intelligence. businesses to drive vigorous and sustainable growth, while optimising media strategy. Allows public affairs Offers customers Amazon- professionals to deliver critical specific software, tools and information, through political expertise to drive sales and The global authority on monitoring, campaigning tools, brand performance across advertising and media and research services across Amazon platforms by directly effectiveness, offering the UK and Europe. actioning solutions for clients. advertising best practice, evidence and insights from the world’s leading brands. Money20/20 offers global events enabling payments Financial statements and financial services innovation for connected commerce at the intersection of mobile, retail, marketing services, data and technology. Segmental review Segmental review Segmental review Segmental review Page 24 Page 24 Page 24 Page 24 Ascential plc Annual Report 2019 / 3 Our investment case THE ASCENTIAL DIFFERENCE We are the global market leader in delivering specialist information that enables our customers to win in the digital commerce economy. CLEAR LONG-TERM VISION Helping leading global brands connect with their customers in a data-driven world. STRUCTURAL Laser focus We support consumer brands and their ecosystems, GROWTH enabling them to thrive within the digital commerce economy. We will help address the changes and challenges Demand for information, data within this environment through our best-in-class solutions for Product Design, Sales and Marketing. & analytics driven by growth of digital commerce. Growing markets Digital commerce is forecast to become an increasingly significant channel for retail over the next five years. This will make optimisation in this arena ever more critical to brand manufacturers, as they seek the most timely, accurate and relevant insight from their partners. Our strategy Market review Page 20 Page 16 4 / Ascential plc Annual Report 2019 MARKET LEADERS We are leaders, with a unique blend of specialisms, in the high growth areas in which we operate. report Strategic Critical partner In many of our businesses we are the key point of reference and a critical partner for our customers. This position is underpinned by a mixture of trusted expertise,
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