Future PLC Capital Markets Day
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Future PLC Capital Markets Day 6 t h F e b r u a r y 2 0 2 0 Today’s Speakers Zillah Byng-Thorne Penny Ladkin-Brand Kevin Li Ying Aaron Asadi Marcus Adolfsson Chief Executive Officer Chief Financial Officer Chief Technology Officer Managing Director of Senior Vice President, eCommerce Future Labs Chris Convey Matthew Pierce Sam Barcroft Kevin Michaluk Senior Vice President, Brand Director Barcroft Studios CEO Strategy & Execution, B2B Future Labs 2 Agenda Execution of 3:00pm Acquisition 4:30pm strategy Playbook Chris Convey Zillah Byng-Thorne New Video Revenue 4:50pm Importance of 3:15pm Sam Barcroft diversification Marcus Adolfsson Organic growth 3:25pm Global operating 5:00pm through audience model Kevin Michaluk & Aaron Asadi Penny Ladkin-Brand Today’s growth 3:55pm Conclusion & 5:10pm from past initiatives questions Matthew Pierce & Kevin Li Ying Zillah Byng-Thorne Coffee Break 4:15pm Drinks 3 Execution of strategy Zillah Byng-Thorne Chief Executive Officer 4 Executive Summary Delivering sustainable growth A tried and tested four-step process to deliver sustainable organic growth over the long term. The Future Horizon Focussed Annual Playbook Planning Execution Planning & Organisational Ensuring the Once aligned and Review alignment around optimal mix of clear the focus is common short, medium on executing well Cycle framework and long term To enable delivery planning to and course deliver correction as sustainable events unfold growth Business Strategy Overview & Growth 5 The Future Playbook 6 The Future Playbook Why do we exist? How will we succeed? 1 Our Purpose 4 Our Strategy How do we behave? What’s important 2 Our Values 5 right now? Our Current Plan What we do? Who must do what? 3 Our Business Model 6 Our Responsibilities Business Strategy Overview & Growth 7 Why we exist Our Purpose We change people’s lives through sharing our knowledge and expertise with others, making it easy and fun for them to do what they want. The Future Playbook Future The 8 How we behave Our Values We are part of the audience and their community. We are proud of our past and excited about our future. We all row the boat. It’s the people in the boat that matter. Results matter; success feels good. The Future Playbook Future The Let’s do this! 9 What we do Our Business Model We entertain, inform and engage our audiences with content that connects in specialist verticals via magazines, websites, email, video and events; we monetise this via paid-for content, media advertising sales, ticket sales and eCommerce. The Future Playbook Future The 10 How we will succeed Our strategy Future is a global platform for specialist media driven by technology with diversified revenue streams. We create loyal communities and fans of our brands by giving them a place they want to spend their time and meet their needs. We diversify our monetisation models to create significant revenue streams. We leverage our data and analytics to drive our strategy We expand our global reach through organic The Future Playbook Future The growth, acquisitions and strategic partnerships. 11 What’s important right now Our 2020 Plan We execute our strategy through a series of intentional steps, we call this ‘what's important right now’. Be #1 Become the global leader in our specialist markets, growing our audience through content and platform. Horizon 1 Unlock new brand potential Deliver on our promise to grow audience, advertising, and eCommerce effectively and efficiently across acquired and new brand launches. Horizon 1 & 2 Supercharge the support Transform Future’s back office operations to improve scalability and deliver enhanced, sustainable partnership to the core. Horizon 2 & 3 Evolve the Future Wheel Grow our expertise and develop new ways to monetise The Future Playbook Future The our audience, from new verticals to new products. Horizon 2 & 3 12 Who must do what Our Responsibilities A core part of the strategy is alignment of objectives and performance management. We focus on helping everyone be their best self at Future, while aligning our rewards such that success is based on Future performance rather than the individual. This creates alignment, through shared goals and success. As I get better, Future gets better. The Future Playbook Future The 13 Horizon Planning 14 Mckinsey Planning Horizons CREATE OPTIONS FOR FUTURE BUSINESS NURTURE EMERGING BUSINESS FOR TOMORROW’S By determining CASH FLOW “what's important GENERATE HORIZON 3 TODAY’S CASH 24 TO 36 MOs. right now” we FLOW, DEFEND AND EXTEND CURRENT ensure we focus on BUSINESS HORIZON 2 growth for today 12 TO 24 MOs. and tomorrow. YOU NEED TO INVEST IN HORIZON 1 INNOVATION ACROSS ALL 0 TO 12 MOs. THREE TIME HORIZONS GROWING PROFITS Horizon Horizon Planning EXPECTED TIME HORIZONS 15 Focused Execution 16 Same principles, greater ambition The principles which underpin our strategy have not changed since 2016: be a market leader, grow revenue streams organically, and accelerate growth with value add acquisitions. Only our ambition is greater. Focused execution 17 A series of intentional steps What’s important right now Our strategy is broken into a series of intentional steps each year, this is what’s Important right now. Ongoing execution demands that today’s activities are aligned with tomorrow’s ambition. Focused execution 18 Execution of 2020 strategy Underpinned by four core pillars Grow our existing Launch new brands Continued Ongoing brands and & verticals diversification Investment audiences Extension into new categories on Scalable, lean and robust platform, Acquisition of SmartBrief Acquisition of Cycling, MoNa and legacy brands driving double digit with eight sites migrated to introduces a material new SmartBrief all enabled Future to growth Vanilla in the last six months. revenue stream in email scale opportunity Overall 24 websites on platform marketing Launched new mainstream Continued investment in our cycling site to broaden audience Continued improvements in 54% of revenue now delivered technology, development of reach eCommerce and digital from the US Hybrid & Flexi during the year, in advertising, including addition to increased investment Launched new 5G Radar brand to development of video & image-led Investment in headcount to scale in internationalisation of grow B2B business and play to solutions our Canadian opportunities technology stack Future expertise Standardising the model - Ongoing trials with, TechRadar Launch of three new websites in Relaunch of Purch forums, in Playbooks rolled out across Purch, Hispanic, Language formats, last six months addition to three new forums, Cycling and MoNa Marketing intent, Podcasting, embracing the community Video commerce Continued investment in our SmartBrief adds significant off- people, headcount increased 22% platform expertise and client base YoY Focused execution 19 Fast scaling Alignment of culture A fast-scaling business means we need people to hit the ground running, identifying quickly who will fit from a culture and capability perspective. We might not be right for everyone, and that’s okay We use a number of tools to identify Future Pirates, from personality profiling and behavior-based interviews to in- network referrals and peer reviews. We onboard people well and provide support around development, induction and ongoing team engagement around the things that matter most. Focused execution 20 Executing our current plan Be #1 No.1 Already No.1 Organic growth UK UK & US 2m 3m underpins our 3m 3m leadership positions, while acquisitions 900k accelerate the 100k strategy FY17 FY18 FY19 FY17 FY18 FY19 Photography Global Online Users Creative Global Online Users No.1 US 130m No.1 US 32m Space 30m Already No.1 in 26m 89m PC Gaming 21m 18m Already No.1 UK 26m 200k FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Technology Global Online Users Games & Entertainment Focused execution Global Online Users Knowledge Global Online Users 21 Executing our current plan Unlock new brand potential We take existing brands and unlock their full potential. Focused execution 22 Executing our current plan Supercharge the support Our operating model delivers efficiencies which enable us to optimise our core business and acquisitions. ?? Focused execution 23 Executing our current plan Evolve the future wheel We have 9 meaningful revenue streams. Service & Service Others & Others 6% Events 16% 7% Digital Ads Membership We grow new revenue Indirect & Subs streams both organically 8% Print and by acquisition, at a 20% Advertising 20% Content constant rate. eCommerce Data & Lead Gen 11% Newstrade 17% 12% Digital Ads Digital Ads Direct Off Platform Focused execution At constant rate, Proforma includes full year revenue for SmartBrief 24 Executing our current plan Acceleration of our strategy via M&A The right acquisition for Future is one we believe can uniquely create additional value while accelerating our strategy Ability to add value Clear criteria Speedy integration Use data and analytics to identify Clear investment criteria Integrate rapidly and efficiently assets where we can add value. focussing on financial and non- financial metrics Have a clear plan, involve the Opportunity to increase right people early (but only operating leverage Focus on people & IP them) Free up resource from BAU to Digitizing and growing brands Look at longer term NPV/Value focus on delivering integration through our platforms multiples Identify opportunities for further Hurdle rates vs where we want additional value creation to be, not our current valuation Focused execution 25 Constant