Roger Horton CEO Taylor & Francis
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Roger Horton CEO Taylor & Francis 2 Academic Information Division Overview of the AI division – books and journals Characteristics of the AI Book Business Profile of the Book Business Digital and e-Books Summary Questions 3 Academic Information Division Revenues of £324m in 2011 (£153m books), Adj OP margin of 36% Formed in 1798, floated 1998, merged with Informa in 2004 Employ over 1,400 people Centres in UK, USA, Singapore, India, China, Australia and Europe Built through organic growth and fully integrated acquisitions Focused on resilient and growing niches OP 4 Specialist Academic Information Target markets - university libraries, under/post graduate students, researchers and professionals Shift from print to electronic delivery 100% journals online, e-book revenues 12% from zero in 10 years Digital excellence, geographic expansion and high value/margin specialism Quality specialist content provider Books and journal businesses thrive on co-existence Top Humanities and Social Science Academic publisher with STM strengths Global focus, global reach 5 Academic Information 1,600+ subscription based journals 3,500+ new book titles p.a. 60,000+ titles in books back list Revenues by Type Revenues by Sector Revenues by Geography 6 The Global AI Business Turnover £m and growth Turnover £m 350 4.5% Books 5% 20% 300 Journals Total 14% 250 13% % Growth 200 5% 29% 8% 3% 4% 150 13% 9% 10% 20% 18% 100 50 0 2006 2007 2008 2009 2010 2011 7 Senior Management Team Roger Horton CEO Emmett Jeremy Ian Kevin Dages North Bannerman Bradley President Managing Managing President US Director Director UK US Books HSS Books Journals Journals Christoph Stuart Chesher Dawson Group COO Sales Director 8 Competing Publishers Publisher Student Research Professional HSS STM Books Journals Learning & Ref Crossover Taylor & Francis (AI) Wiley/Blackwell Springer OUP Sage Elsevier McGraw-Hill Pearson Cengage AI - wide reach across fragmented market AI - balanced, specialist, content levels AI - quality books and journal content by subject, format and delivery 9 The Books Business 10 AI Books - Resilient Publish through the knowledge chain Content quality is king – print, e-books, online are merely the delivery tools Depth, scale and price setting Education resilient through the cycle - seasonal not cyclical Renewable and repeatable revenue streams Global not local 11 Books – Core Strengths Market leading brands in humanities, social science, science and technology Global reach and infrastructure Digital strategy and production innovation Deep back catalogue consistently providing 70% of annual book revenue Strong control of copyright, margins and pricing Long standing, strong management team 12 Books Revenue by Geography 24% UK 51% 8% Europe Rest of World 17% North America 13 Book Revenue Growth by Key ROW Territory 35.0% 32.0% 30.0% 25.0% 20.0% 15.0% 14.0% 15.0% 10.0% 8.0% 2011 Growth Rate Growth 2011 10.0% 5.0% 0.0% Japan India Singapore Middle East China Market territory 14 Acquisition Strategy Bolt-on Strategic Effective way of commissioning new Strengthening of position in key subjects publishing or levels For example: Including: • Kogan Page Education (2003) • Routledge (1998) • David Fulton (2006) • CRC Press (2003) • Productivity Press (2007) • Garland Science (1997) • Architecture Press (2011) • Earthscan (2011) Value created by full integration, creation of scale and close management 15.