Combination and Creation Combination and Creation Annual Report and Financial Statements 2018 Annual Report and Financial Statements 2018 Contents Who we are Contents Informa is an international business-to-business events, academic Strategic Report publishing and information services Group. Highlights 1 Informa at a glance 2 We are listed on the London Stock Exchange and a member of the FTSE 100. Chairman’s Introduction 4 Understanding the enlarged Group 8 Group strategy 10 Group Chief Executive’s Review 12 What we do Business model 20 We serve businesses, professionals and academics working in specialist Our markets 22 Engaging inside and outside Informa 30 communities all over the world, by helping them connect, learn and do Non-financial information statement 37 business, and by providing access to content, intelligence and networks A snapshot of our Divisions in 2018 38 Divisional Review that enable them to work smarter and make better decisions faster. – Academic Publishing 40 – Business Intelligence 44 – Global Exhibitions 48 – Knowledge & Networking 52 – Global Support 56 Key performance indicators 60 Risk management and principal risks and uncertainties 62 Viability Statement 73 Financial Review 76 Governance Chairman’sintroductionto governance 90 BoardofDirectors 94 CorporateGovernanceReport 96 Nomination Committee Report 103 Audit Committee Report 107 Directors’ Remuneration Report 113 Relations with Shareholders 126 Directors’ Report and otherstatutoryinformation 129 Directors’ responsibilities 133 12 Group Chief Executive’s Review 22 Working in specialist markets Financial Statements Independent Auditor’s report 134 Consolidated Income Statement 146 Consolidated Statement of Comprehensive Income 147 ConsolidatedStatementof Changes in Equity 148 ConsolidatedBalanceSheet 149 Consolidated Cash Flow Statement 150 ReconciliationofMovementin NetDebt 150 NotestotheConsolidatedFinancial Statements 151 Company Balance Sheet 222 CompanyStatementofChangesinEquity 223 NotestotheCompanyFinancial Statements 226 Five-yearsummary 229 Company Information Shareholder information 230 Advisers 232 30 Engaging inside and outside Informa 40 Divisional Reviews Strategic Report Highlights 2018 Informa Group highlights Strategic Report Revenue (£m) £2,369.5m Underlying revenue growth (%) 3.7% 201 11.0 014 0. 201 1212.2 015 1.0 201 1.8 01 1. 201 1.8 01 3.4 2018 2. 01 3. Governance Operating profit (£m) £363.2m Adjusted operating profit (£m) £732.1m 201 2.8 201 .0 201 2. 201 . 201 18. 201 1. 201 . 201 . Financial StatementsFinancial 2018 .2 2018 2.1 Free cash flow (£m) £503.2m Dividend per share (p) 21.90p 201 2.2 201 1.80 201 0. 201 18.0 201 0. 201 1.0 201 00. 201 20. 2018 0.2 2018 21.0 * Restated for the impact of IFRS 15. See Note 4 for more information. 2018 business highlights Combination with UBM, June 2018 Entry into the DJSI World Index, September 2018 • £3.9bn addition of UBM brought 3,500 new colleagues, • Informa ranked among the top 10% of listed companies around 350 exhibitions and expanded the Group’s footprint according to performance on economic, social and in Asia and the US. environmental factors. SeetheFinancialReviewonpage76forfull2018financialsand definitions for adjusted results, and key performance indicators onpage60 WWW.INFORMA.COM INFORMA PLC ANNUAL REPORT 2018 1 Strategic Report Informa at a glance An international business-to-business events, academic publishing and information services Group We work with customers in a range of Providing high value business- specialist professional communities to-business information services Life Sciences, Aviation, Fashion • Critical data • Peer reviewed research & Jewellery, Technology, Medical • Face-to-face platforms for sales and product promotion Equipment, Pharmaceutical • Targeted lead generation Ingredients, Health & Nutrition, • Trusted market and competitor intelligence • Data analytics Maritime, Humanities & Social • Actionable industry insight Sciences, Finance, Advanced • Access to qualified buyers Manufacturing, Agriculture, • High quality content • Expanded business and professional networks Construction & Real Estate, • Specialist data and marketing solutions Science, Technical & Medical, • Accredited professional training • Consultancy services Pharma & Biotech, Waste • Sales enablement tools Management, Telecoms, Beauty & Aesthetics, Infrastructure, Pop Culture, Transportation, Brand Licensing, Hospitality & Leisure, International Yachting 2 INFORMA PLC ANNUAL REPORT 2018 Strategic Report Governance Creating and delivering intelligence, Through 11,000 colleagues working and networks and connections engaging to a shared set of common values 4m StatementsFinancial scholarly research articles available for download Specialism and focus 4.2msq.m Dedicated to and expert in our customers’ of exhibition space provided to businesses annually specialist markets 27m marketing/lead generation database of27mbusinessprofessionals Integrity and trust Taking pride in our brands, with a focus 29 on quality and credibility exhibitionsrankedintop250UStradeshowsbysize 26,000 partnering meetings held between investors Think big, act small andlifesciencesfirmsatBIO-Europe2018 Forward looking and seeing the bigger picture while delivering on the detail 120,000 ebooks to search and download 5.5m+ Freedom and authority people attend our events and exhibitions annually Distributed decision enables business teams to be responsive to customer needs 700,000+ aviation professionals engage with our brands R 2 1 0 m Agility and speed value generated for attendees and exhibitors A dynamic environment, with a flexible atAfricaCom2017 and commercial approach WWW.INFORMA.COM INFORMA PLC ANNUAL REPORT 2018 3 Strategic Report Chairman’s Introduction Derek Mapp Chairman A year of delivery, combination and creation 4 INFORMA PLC ANNUAL REPORT 2018 View from the Board: expansion and scale What led the Board to endorse Strategic Report “ GAP created a Group Informa’s 2018 expansion plans? The Board’s view was that Informa had the potential with greater balance and to create significant value for Shareholders as well as opportunities for colleagues and other partners breadth and this positive through adding the UBM business. We knew the business well and believed it was a good fit, with its momentum has given complementary brands, similarities in culture and values, and a comparable recent history of change your management team and growth. The progress made through GAP and the Governance effective integration of Penton Information Services and the Board the had also increased our confidence in Informa’s capability to combine the businesses effectively. confidence to do more.” What role has the Board played so far? As ever, the Board represents the interests of Shareholders and other stakeholders by overseeing the Group’s activities, guiding the management team and challenging plans where appropriate. The Directors StatementsFinancial provided support and input to the leadership team with its decision making during the offer process, assessed integration plans and received regular progress reports in Board meetings and through informal conversations in between. Board members also engaged with Shareholders and colleagues. I attended ReInvent, a gathering of around 100 leaders from across the enlarged Group, in July, answering questions and getting direct feedback on how the new Informa Group was coming together. I am delighted to have the opportunity to address Informa Shareholders and colleagues, and to express my thanks for Did the Board have any concerns about the combination? theirsupport,hardworkandcommitmentthrough2018. The impact on colleagues and our culture was foremost in our minds. Informa is a people business, and we knew It was another busy and productive period that saw the Group an effective outcome would rely on the engagement, report a fifth consecutive year of growth in revenue, profits, support and efforts of all those in each business. It was cash flow and dividends. It was also a year when we took a critical that combining the businesses would ultimately considerable step forward in our future growth and ambition add to the experience and opportunities available to by adding UBM to the Informa portfolio. colleagues, rather than unduly disrupting or stretching teams. Diligence gave us comfort that the business From GAP to the AIP cultures were aligned, and further work has been done The Informa Group has progressively and consistently evolved to more fully understand what is important to colleagues overthepastfiveyears.Throughthe2014-2017Growth and build a set of common principles and ways of Acceleration Plan (GAP), the Group was reshaped, restructured, working for everyone in the Group. repaired and rebalanced. What is the Board’s focus for 2019? GAP created a Group with greater balance and breadth and this Aside from our ongoing wider responsibilities and positive momentum has given your management team and the maintaining the focus on colleagues and culture, it is Board the confidence to do more. It directly led us to push for to make sure we complete the AIP effectively and deliver furtherscalein2018,whenaddingUBMprovidedaunique on our Shareholder promises by meeting our synergy opportunity to build on the progress made through GAP and targets and pursuing revenue opportunities. At the enhance the Group’s international breadth and depth in same time, we will work to ensure the Group continues specialist markets, particularly in exhibitions. to deliver consistent underlying