2017 INFORMA INVESTOR DAY
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INFORMA INVESTOR DAY: 15 JUNE 2017 2 STEPHEN A. CARTER GARETH WRIGHT GROUP CHIEF EXECUTIVE GROUP FINANCE DIRECTOR GROWTH & CAPABILITY
INFORMA INVESTOR DAY: 15 JUNE 2017 3 2017 INFORMA INVESTOR DAY: AGENDA
Stephen A. Carter Group Chief Executive Growth & Capability Gareth Wright Group Finance Director
Patrick Martell The Journey To Growth CEO, Business Intelligence Opportunities From a Fully Integrated Penton Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services
Andrew Mullins Simplify, Focus, Grow CEO, Knowledge & Networking Anna Chrisman MD, Life Sciences Carolyn Dawson MD, TMT
Charlie McCurdy Expansion, Growth and Scale CEO, Global Exhibitions Fred Linder MD, Global Health & Nutrition Network
Stephen A. Carter Future Growth & Opportunity Group Chief Executive
INFORMA INVESTOR DAY: 15 JUNE 2017 4 ATTRACTIVE INTERNATIONAL MARKETS
The Knowledge and Information Economy
International Platforms for Specialist Insight & Scholarly Research and Community Engagement Trade & Commerce Intelligence Academic Knowledge & Learning Platforms
Globalisation of industries Overload of available Growth in international Globalisation of industries and networks information and content research and development and networks
International industry Niches, sub-niches Subject categories Communities and sub- verticals and nano-niches and specialisms communities Value of face-to-face Value of data-driven Value of knowledge sharing Value of face-to-face transactions decision making and collaboration professional networking
GLOBAL BUSINESS ACADEMIC KNOWLEDGE & EXHIBITIONS INTELLIGENCE PUBLISHING NETWORKING
INFORMA INVESTOR DAY: 15 JUNE 2017 5 INFORMA INVESTOR DAY: NOVEMBER 2015
Growth Acceleration Plan: Progress to date Key Themes Focus on Academic Publishing (Taylor & Francis) and Global Exhibitions
Academic Publishing: Content Depth and Operating Efficiency • The strength of Academic Journals • Focus and depth in Scholarly and Reference-led Academic Books • Digital investment and Academic Services
Global Exhibitions: Maximising the Growth Opportunity • Industry dynamics and growth drivers • The ambition: Exhibition Organiser to Market Maker • US entry strategy and focus on Construction & Real Estate
Operational & Financial Update: Improving Financial Discipline • GAP programme and operational fitness • Divisional structure and management • Increased working capital and cashflow discipline
INFORMA INVESTOR DAY: 15 JUNE 2017 6 ACADEMIC PUBLISHING: TAYLOR & FRANCIS
New Leadership: Annie Callanan • Experienced leader of information services and technology businesses
• Track record of delivering operational improvement, innovation and shareholder value
• Deep knowledge and expertise in digital platforms and technology
• Currently serving as CEO, Quantros
― COO Systech International
― COO ProQuest
• Relocating from US to UK
INFORMA INVESTOR DAY: 15 JUNE 2017 7 ACADEMIC PUBLISHING: TRADING ON TRACK
STRENGTH Strong renewals and consistent growth in Academic Journals
CONSISTENT Solid performance in upper level scholarly research and reference-led Academic Books
FOCUS No further deterioration in Lower Level textbooks; further focus through Garland disposal
INVESTMENT Continued investment in discoverability; expansion of digital services through Colwiz
GROWTH Continue to target underlying growth similar to last year in 2017
INFORMA INVESTOR DAY: 15 JUNE 2017 8 ACADEMIC PUBLISHING: FUTURE GROWTH & OPPORTUNITIES
+ive Robust Cash
Underlying revenue growth Adjusted operating margins Consistently strong generation
International Strength Open
Expand presence and Consistent growth and strength in peer Continued expansion and innovation partnerships overseas review, scholarly journals in Open Access Publishing
Discover Data Services
Investment in granular digitisation Enhanced analytics to Expansion of Academic Digital and discoverability drive customer insight Services offering
SCALE BUSINESS WITH ATTRACTIVE MARGINS AND STRONG CASHFLOW
INFORMA INVESTOR DAY: 15 JUNE 2017 9 “ The goal is simple but demanding: to progressively return every part of our business to growth, and to simultaneously build the capabilities and platforms needed for future scale and consistent performance. ” Informa Annual Report 2014
INFORMA INVESTOR DAY 15 JUNE 2017 2014-2017 GROWTH ACCELERATION PLAN
GAP AMBITION
• Aggregate underlying growth of 3%+ GROWTH • Platform for sustainable future growth • All four Divisions in growth going into 2018
• Functional discipline and expertise CAPABILITY • Operational fitness • Capacity and capability for future scale
INFORMA INVESTOR DAY: 15 JUNE 2017 11 2014-2017 GROWTH ACCELERATION PLAN FRAMEWORK
Growth Acceleration Plan (GAP)
GAP GAP GAP GAP GAP GAP Management Portfolio Acquisition Operating Investment Funding Structure Model Management Strategy
INFORMA INVESTOR DAY: 15 JUNE 2017 12 ENHANCED CAPABILITIES THROUGH GAP
OPERATIONAL FITNESS
Divisional Operating Strengthened Senior M&A Focus Strengthened Finance Structure Management and Experience and Treasury
3-Year Planning Group and Divisional Communication Operating Metrics Discipline Strategy and Culture
Strengthened Finance Customer Focus Equity Incentives Technology Platforms Systems
Board Depth Talent Development Advertising and Marketing Risk and Compliance and Breadth and Training Capability
Increased Increased Increased Increased Revenue Earnings Free Cash Flow Dividends
INFORMA INVESTOR DAY: 15 JUNE 2017 13 ENHANCED FINANCIAL CAPABILITIES THROUGH GAP
FINANCIAL FITNESS
Upgraded Finance Relocation and expansion Strengthened Risk and Group Authority Systems of Treasury team Compliance Function Framework
3-Year Business Divisional Operating Forecasting Consistency Re-domicile to UK Planning Metrics and Rigour
Working Capital Capital Investment Long-term Flexible Balance Sheet Leverage Management Committee Financing
Revenue to Profit Capital Allocation Order to Cash Efficiency Profit to Cash Conversion Conversion Discipline
Increased Increased Increased Increased Revenue Earnings Free Cash Flow Dividends
INFORMA INVESTOR DAY: 15 JUNE 2017 14 INVESTMENT FOR GROWTH
GAP INVESTMENT FUTURE INVESTMENT
Capex 3-5% of revenue c. £90m over three years (1-2% in GE/K&N; 4-5% in AP/BI)
Catch-up investment Continuous reinvestment for growth
Product refresh Product innovation
Platform upgrade Platform enhancement
Technology capacity Technology capability
Electronic to digital Enhanced digital
VIRTUOUS CIRCLE OF HIGHER SUSTAINABLE GROWTH AND REINVESTMENT
INFORMA INVESTOR DAY: 15 JUNE 2017 15 ENHANCED PRODUCTS AND PLATFORMS THROUGH GAP
AP: Enhanced CRM AP: Researcher platform Lifecycle AP: Enhanced Content AP: Research Management Networking AP: Unified Books and GE: Enhanced Journals Experience Customer Insights AP: Evidence-based AP: Analytics GE: Market Maker offerings AP: Data visualisation capability Platform GE: Customer GE: Global Web GE: Enhanced digital GE: Sales order Analytics Insights Platform marketing processing GE: Personalised GE: Marketing GE: Global Data marketing GE: Global Sales CRM Automation platform Platform K&N: L&PD rollout K&N: CORE K&N: E-commerce K&N: CORE web publishing & media enhancement rollout 3 BI: Agra Insight capabilities K&N: CORE web K&N: Salesforce K&N: Social platform platform upgrade enhancement enhancement rollout 2 BI: Crop Protection BI: E-Commerce K&N: Vertical K&N: Pricing Model Portal and data service platform Constellations BI: Fertilizer Portal BI: Next Gen Pharma 1 BI: TAS 2 and data service BI: LLI Re-platform and new data feeds AP: Book Content BI: SFDC Finance BI: Phase 3 release - BI: Next Gen Pharma 3 BI: Analytics POC Platform Migration FOL and new data feeds K&N: CORE web BI: Citeline authoring BI: Maritime Insight BI: MAP platform BI: Self Service rollout 1 BI: Early access Platform website BI: Scrip Insight rolling Pharma BI: Agra Insight BI: Shop Window BI: ID & Entitlement Platform launches Platform nd BI: DMHC TM1 BI: Addition of SOC BI: Commodities Portal BI: 2 Pharma API BI: CPQ platform forecasting data and Data Services upgrade launch K&N: Launch of CORE BI: Addition of EPI BI: Pharma Insight BI: IEG Phase 2 BI: Next Gen Pharma 2 BI: LLI Marketing Site platform data Products release and new data feeds Scheduled Scheduled Product/Platformreleases BI: Vertical Brand BI: DMHC disease BI: SFDC single BI: 1st Pharma API BI: LLI data upgrade BI: 3rd Pharma API structure additions customer view upgrade launch and geo-location upgrade launch
2016 - 2018 INFORMA INVESTOR DAY: 15 JUNE 2017 16 POST-GAP FINANCIAL FRAMEWORK
3%+ underlying revenue growth INFORMA GROUP Consistent margins over 30% Continuous re-investment for growth
5%+ underlying revenue growth GLOBAL EXHIBITIONS Market-leading margins
3%+ underlying revenue growth BUSINESS INTELLIGENCE Improving margins with growth
Positive underlying revenue growth KNOWLEDGE & NETWORKING Improving margins with mix
Consistent underlying revenue growth ACADEMIC PUBLISHING Strong margins (with currency variability)
INFORMA INVESTOR DAY: 15 JUNE 2017 17 INCREASED BALANCE AND BREADTH
Revenue by type Revenue by geography
Academic Scholarly/Reference Subscription ROW Books China
Other Middle East
Marketing Services 2016 2016 PF UK PF Attendee
Continental Europe Americas
Sponsorship Exhibitor
Pre-booked / Recurring / Visible Revenue = 60%+
INFORMA INVESTOR DAY: 15 JUNE 2017 18 2016 charts are pro-forma estimates, including a full year of Penton and YPI and excluding domestic conference businesses under review INCREASED BALANCE AND BREADTH
Business Intelligence Global Exhibitions
Global Exhibitions Business Intelligence 2016 PF 2013 Knowledge & Networking
Academic Knowledge & Publishing Networking Academic Publishing
Revenue Revenue £1.1bn £1.7bn+
INFORMA INVESTOR DAY: 15 JUNE 2017 19 2016 charts are pro-forma estimates, including a full year of Penton and YPI and excluding domestic conference businesses under review 2017 INFORMA INVESTOR DAY: AGENDA
Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director
Patrick Martell The Journey To Growth CEO, Business Intelligence Opportunities From a Fully Integrated Penton Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins CEO, Knowledge & Networking Anna Chrisman MD, Life Sciences Carolyn Dawson MD, TMT Charlie McCurdy CEO, Global Exhibitions Fred Linder MD, Global Health & Nutrition Network Stephen A. Carter Group Chief Executive
INFORMA INVESTOR DAY: 15 JUNE 2017 20 BUSINESS INTELLIGENCE: THE JOURNEY TO GROWTH
SPEAKERS TOPIC
Business Intelligence Patrick Martell CEO Business Intelligence The Journey to Growth Opportunities From a Fully Integrated Penton
Pharma Lara Boro Group MD Business Intelligence Product and Platform Innovation Vertical Profile: Pharma
Gary Nugent AgriBusiness Group MD Business Intelligence Customer Focus and Sales Excellence Vertical Profile: AgriBusiness
Kate Spellman Marketing Services
President, Marketing Services Growth Opportunity
INFORMA INVESTOR DAY 15 JUNE 2017 21 THE MARKET AND OUR BUSINESS
MARKET CHARACTERISTICS OUR BUSINESS
• Business data and information • Subscription-based revenue • Large and growing market • Organised around six end market verticals • Relatively fragmented • Narrow and deep niche focus • International with US bias • Strong brands in niches • Specialist niche segments • Consulting and Marketing Services
MARKET GROWTH OUR VERTICALS AND BRANDS
50 PHARMA TRANSPORT TMT 40
30
20
10 FINANCE AGRIBUSINESS INDUSTRY 0 2013 2014 2015 2016 2017E 2018E
Source: Outsell (B2B Media & Business Information Market, $bn)
INFORMA INVESTOR DAY 15 JUNE 2017 22 BUSINESS INTELLIGENCE SNAPSHOT
Business Intelligence provides specialist data-driven intelligence and insight to businesses, helping them to make better decisions faster.
£360M+ £75M+ 2000+ 250+ Revenue Adj. Op Colleagues Brands
1%+ 20-25% 150k+ 30k+ Underlying growth Group Revenue Active users Subscribers
REVENUE BY VERTICAL REVENUE BY TYPE REVENUE BY REGION
Agribusiness Finance Subscriptions North America Industry & Marketing Services Central Europe 2016PF Infrastructure 2016PF 2016PF Consulting UK Transportation Other ROW Pharma TMT
INFORMA INVESTOR DAY 15 JUNE 2017 Charts and numbers are pro-forma estimates, including a full year of Penton 23 2014-2017 GROWTH ACCELERATION PLAN
Objective Organic revenue growth
• Skills and capability investment (Sales, Product, Technology, Sector Specialists)
• Restructure around market verticals
• Focus on customer retention & subscription revenues
• Invest in product, people & technology to drive new business
• Align incentives to revenue growth and performance
INFORMA INVESTOR DAY 15 JUNE 2017 24 APPROACH AND KEY INITIATIVES
PROCESS KEY INITIATIVES Making it work
Improved customer Focus on retaining engagement existing & retention customers
Investment Sales & in sales & New marketing marketing business alignment
CUSTOMER Investment in products and platforms
Ease of Product doing management business Revenue +:
Growth Acceleration Plan Marketing Services / Consulting
INFORMA INVESTOR DAY 15 JUNE 2017 25 THE JOURNEY TO GROWTH: OPERATIONAL FITNESS
2013 2017
• Archipelago of businesses • Market-facing verticals, focused portfolio
• International business with growing US • UK-centric culture; underweight US footprint
• Dated technology infrastructure • Refreshed platforms, cloud hosting
• Underinvested products • Embedded product development cycles
• Customer management • Customer prioritisation
• Distributed knowledge and processes • Functional expertise: Sales, IT, Product
• US/Asia operations managed from UK • Regional management teams for US & APAC
INFORMA INVESTOR DAY 15 JUNE 2017 26 THE JOURNEY TO GROWTH: OPERATING METRICS
OPERATING METRIC 2013 2017
• Annualised Contract Values (ACV) • Falling • Rising
• Value Renewal Rate • 70 - 75% • c. 90%
• Pre-Expiry Renewal Rate • <40% • >70%
• New Business Value Rate • Falling • Rising
• Active users per month (subscriptions) • 138k • 175k (+27%)
• Average monthly unique visitors (marketing services) • 8.6m • 12.5m (+44%)
• Average pages per session from Known Users • 2.63 • 3.25 (+24%) (marketing services)
• Organic Revenue Growth • -4% to -9% • >1.1%
INFORMA INVESTOR DAY 15 JUNE 2017 27 OPERATING STRUCTURE: ORGANISED AROUND END MARKETS
BUSINESS INTELLIGENCE (Patrick Martell, CEO)
AFI PTT Gary Nugent, Group MD Lara Boro, Group MD
Industry & Agribusiness Financial Pharma Transportation TMT Infrastructure Intelligence Intelligence Intelligence Intelligence Intelligence Intelligence
CONSULTING Tim Polack, Head of Consulting
MARKETING SERVICES Kate Spellman, President, Marketing Services
OPERATIONS FINANCE HR IT/DIGITAL
INFORMA INVESTOR DAY 15 JUNE 2017 28 BUSINESS INTELLIGENCE GROWTH OPPORTUNITY
HELPING CUSTOMERS MAKE BETTER DECISIONS FASTER
CORE REVENUE: Renewal rates New business SUBSCRIPTIONS New products (75%+ revenue) Enhanced platforms Customer service • Intelligence SUBSCRIPTIONS • Insight
CONTINGENT REVENUES: MARKETING SERVICES (10%+ revenue)
• Content CUSTOMER • Audience • Brand
CONSULTING MARKETING (5%+ revenue) CONSULTING SERVICES
• Custom market research • Expert market analysis • Strategic market advice
INFORMA INVESTOR DAY 15 JUNE 2017 29 GROWTH OPPORTUNITY: CONSULTING
BUSINESS INTELLIGENCE CONSULTING
Renewed focus and leadership Strengthens strategic relationships
Incremental revenue opportunity Deepens customer insight
INFORMA INVESTOR DAY 15 JUNE 2017 30 Opportunities From a Fully Integrated Penton
Patrick Martell CEO Business Intelligence
BUSINESS INTELLIGENCE
31 PENTON SNAPSHOT
Health & Nutrition Agriculture Transportation
Design & Manufacturing Infrastructure TMT
190 Print Events Digital Infrastructure & TMT 23% 170
Design & Manufacturing 16% 150 130 Health & Nutrition 23% 110
Transportation 22% 90
Agriculture 16% 70 50 $m 2013 2016
INFORMA INVESTOR DAY 15 JUNE 2017 32 FULL COMBINATION WITH INFORMA
INTEGRATION PLAN NET OPERATING SYNERGIES
Management overlap DISCOVER • Complete
Property consolidation
Operational overlap INTEGRATE • Complete £14m net target by Procurement/Commissions 2018
• Final divisional allocations Functional Duplication COMBINE • Integrated reporting • Full systems integration Benefits Harmonisation
INTEGRATION AND SYNERGY PLAN AHEAD OF SCHEDULE
INFORMA INVESTOR DAY 15 JUNE 2017 33 FULL COMBINATION WITH BUSINESS INTELLIGENCE
STRONG BRANDS EFFECTIVE INTEGRATION
Industry & Infrastructure • Smooth combination with relevant BI verticals
― Transportation
― Industry & Infrastructure
• Updated management structure
• Administrative functions aligned Transportation (HR, Finance, Ops)
• Full systems integration progressing
OPERATING AND REPORTING AS A SINGLE BUSINESS
INFORMA INVESTOR DAY 15 JUNE 2017 34 BENEFITS & OPPORTUNITIES FROM A FULL COMBINATION
CONTENT Both specialist content and data businesses
BRANDS Powerful combined portfolio of niche brands
AUDIENCE Build, understand and monetise specialist audiences through content and brands
SCALE Increased scale in verticals and across North America
EXPERTISE Leverage Informa subscription knowhow and Penton Marketing Services capabilities
INFORMA INVESTOR DAY 15 JUNE 2017 35 Customer Focus & Sales Excellence
Gary Nugent Group MD, Business Intelligence
BUSINESS INTELLIGENCE
36 OVERVIEW
FINANCE AGRIBUSINESS INDUSTRY & INFRASTRUCTURE
£100m+ revenue £25m+ revenue £50m+ revenue
2016PF 2016PF 2016PF Revenue By Type By Revenue
SALES & MARKETING
Subscriptions / Marketing Services / Consulting / Other
INFORMA INVESTOR DAY 15 JUNE 2017 Charts and numbers are pro-forma estimates, including a full year of Penton 37 CUSTOMER FOCUS & SALES EXCELLENCE
Are we doing what we said we would do? KPIs Is it having the desired effect?
STRUCTURE From product to market and customer-centric coverage
TALENT & INCENTIVES Incentives aligned to performance and growth
CUSTOMER Selling is a team sport: Customer Engagement Programme MANAGEMENT
CLIENT SERVICES Recognising the product is not just the product
BRAND & MARKETING Brand refresh: Precision, Authority, Forward Focus and Connected
PRIORITY: RETAIN AND GROW EXISTING CUSTOMERS
INFORMA INVESTOR DAY 15 JUNE 2017 38 Agribusiness Profile
INFORMA INVESTOR DAY 15 JUNE 2017 39 AGRIBUSINESS SNAPSHOT
AGRIBUSINESS MARKET CHARACTERISTICS OUR REVENUE MIX
• Demand for more, better quality food on the rise • Supply & demand is global and volatile Subscriptions • Investment to optimise fragmented, opaque supply Marketing Services chains 2016PF Consulting • Investment in bio-chemistry and digital to drive productivity and yield Other • Hunger for data, forecasts and decision support services
OUR KEY BRANDS OUR GEOGRAPHIC FOOTPRINT
55% 30% 15%
INFORMA INVESTOR DAY 15 JUNE 2017 40 EXPERT INTELLIGENCE ACROSS THE VALUE CHAIN
INFORMA INVESTOR DAY 15 JUNE 2017 41 AGRIBUSINESS: IEG VANTAGE GAP ILLUSTRATION
PRODUCT CUSTOMERS
• Deep analysis of market impacts affecting crops & • Broad appeal across the Agribusiness value chain, with livestock commodities focus on growth segments • Provides critical supply, demand, price & trade data and • Buyers, traders, analysts etc. proprietary forecasts • Enables clients to develop optimal trading, purchasing and • Unrivalled breadth of coverage and depth of intelligence investment strategies
INFORMA INVESTOR DAY 15 JUNE 2017 42 AGRIBUSINESS: GAP ENHANCEMENT
• Fragmented • Unified vertical identity • Inconsistent • Connected and consistent through channels • Electronic • Digital • Poor customer experience • Enhanced customer experience
INFORMA INVESTOR DAY 15 JUNE 2017 43 Product & Platform Innovation Lara Boro Group MD Business Intelligence
BUSINESS INTELLIGENCE
44 OVERVIEW
PHARMA TRANSPORTATION TMT
£100m+ revenue £55m+ revenue £30m+ revenue
2016PF 2016PF 2016PF Revenue By Type By Revenue
PRODUCT & PLATFORM STRATEGY
Subscriptions / Marketing Services / Consulting / Other
INFORMA INVESTOR DAY 15 JUNE 2017 Charts and numbers are pro-forma estimates, including a full year of Penton 45 CUSTOMER FIRST PRODUCT MANAGEMENT
CAPABILITY Product Management Experts
COMMON FRAMEWORK Pragmatic Marketing
CUSTOMER FOCUS Outside-In Development Approach
COMMERCIAL BUSINESS GAP Governance Framework CASES
INNOVATION Technology, R&D Team, Partnership
TRACKING AND Lead KPIs, Innovation Index MEASUREMENT
PRIORITY: INVEST IN KEY INTELLIGENCE ASSETS, SIMPLIFY INSIGHT PORTFOLIO
INFORMA INVESTOR DAY 15 JUNE 2017 46 PRODUCT STRATEGY AND ARCHITECTURE
Consulting Maritime What should we do? Insight
Lloyds List Intelligence What will happen? Intelligence
Insight Lloyds List
What happened & why? Value per customer Value per Marketing Services Lloyds List Awards Help me reach my target market The Intelligence
Ship owners, Shipping and trade Commodity operators finance markets
Customer volume
INFORMA INVESTOR DAY 15 JUNE 2017 47 Pharma Profile
INFORMA INVESTOR DAY 15 JUNE 2017 48 PHARMA SNAPSHOT
PHARMA MARKET CHARACTERISTICS OUR REVENUE MIX
• c.$12bn pharma information/solutions market • Global, highly regulated, yet dynamic Subscriptions • $60bn annual spend on R&D Marketing Services • High risk drug development: 2016PF Consulting ― $2.5bn cost Other ― 10-15 years to develop ― 90% failure rate
OUR KEY BRANDS OUR GEOGRAPHIC FOOTPRINT
59% 32% 9%
INFORMA INVESTOR DAY 15 JUNE 2017 49 PHARMA: CUSTOMER SEGMENTATION
4 CORE CUSTOMER GROUPS GEOGRAPHIC SPREAD OF CUSTOMERS
Pharma & Biotech
Companies Other 13% e.g. GlaxoSmithKline, Amgen China Israel 1% 2% Contract Research Denmark 2% Organisations France 5% e.g. Covance, Parexel US UK 54% 5%
Switzerland Medtech Companies 6%
e.g. Boston Scientific, Teleflex Germany 6% Japan 6% Professional Services: Consultants, Agencies
e.g. Bain & Co, Omnicom
INFORMA INVESTOR DAY 15 JUNE 2017 50 PHARMA: PRODUCT STRATEGY & ARCHITECTURE
Consulting What should we do?
Intelligence What will happen?
Insight
Value per customer Value per What happened & why?
Marketing Services Help me reach my target market
Policy & Target Persona Clinical R&D Regulatory Commercial Medtech
Customer volume
INFORMA INVESTOR DAY 15 JUNE 2017 51 PHARMA: TRIALTROVE PRODUCT & GAP ENHANCEMENT
PRODUCT CUSTOMERS
• Intelligence, data and analysis on completed and • GAP funded platform rebuild, developed in ongoing clinical trials conjunction with customers • Informs critical R&D strategy decisions • Enhanced capabilities preserve and extend • Market leading solution in all major Pharma’s and clinical market leadership position research organizations (CROs) • Includes APIs to embed in customer platforms INFORMA INVESTOR DAY 15 JUNE 2017 52 PHARMA: GAP INVESTMENT
PHARMAPREMIA: MONETIZING OUR DRUG DATA FOR PREDICTIVE ANALYTICS
Enables rapid evaluation of drug success rates and helps manage R&D portfolio risk across full range of pharma players for different disease trials
INFORMA INVESTOR DAY 15 JUNE 2017 53 Marketing Services Opportunity
Kate Spellman President, Marketing Services
BUSINESS INTELLIGENCE
54 BUSINESS INTELLIGENCE GROWTH OPPORTUNITY
HELPING CUSTOMERS MAKE BETTER DECISIONS FASTER
CORE REVENUE: SUBSCRIPTIONS (75%+ revenue)
• Intelligence SUBSCRIPTIONS • Insight
CONTINGENT REVENUES: MARKETING SERVICES (10%+ revenue)
• Content CUSTOMER • Audience • Brand
CONSULTING MARKETING (5%+ revenue) CONSULTING SERVICES
• Custom market research • Expert market analysis • Strategic market advice
INFORMA INVESTOR DAY 15 JUNE 2017 55 OUR APPROACH
1. Deepen and expand client relationships from traditional advertising to marketing campaigns built on audience reach 2. Leverage our brands and scale to develop advantaged capabilities versus competitors (audience knowledge) 3. Offer full capabilities to enable turnkey programs and make it easy for our customers 4. Focus on integrated, high value programs that: • Don’t compete with agencies • Have high margin • Scale and renew • We can deliver
INFORMA INVESTOR DAY 15 JUNE 2017 56 PRODUCT/SERVICES SOLUTIONS FOR MARKETING REVENUE
Advertising Content Marketing Events
Ads are designed to drive Creating and distributing valuable, Event related marketing either engagement and awareness relevant content to attract, engage through the organisation of industry and retain a clearly-defined audience relevant events or through sponsorship (measurability/ROI) (online & in-person)
• Display: generic banner ads • Social media • In-person events • Native: ads embedded within a site • Case studies (e.g. award ceremony, conference, gala etc.) providing a high degree contextual • Blogs • Virtual events relevance • White papers, essential guides • Event sponsorship • Targeted: placing ads to a clearly • Microsites • Streaming video defined audience based on first • Research reports party data (e.g. eNewsletters) • Website content • Direct: variety of media to • Data solutions communicate directly to customers • Video (e.g. email) • Webinars/webcasts • Print: print advertising solutions • Campaign management (e.g. Supplements)
AUDIENCE demos, segmentation, insight, intent, consumption
INFORMA INVESTOR DAY 15 JUNE 2017 57 CASE STUDY
EXAMPLE: Large manufacturing company launching new product NEED: To fill sales pipeline Pipeline fulfillment ongoing
Program
DISCOVERY AWARENESS CONSIDERATION PURCHASE ADVOCACY
Research Market need Advertising Webinars, White Papers Lead Nurturing Microsite & Audience target Broad Reach Education, targeted Targeted content, Continued engagement / reach, leads Hand Raised pipeline
Leads ready to talk to company
INFORMA INVESTOR DAY 15 JUNE 2017 58 OUR ADVANTAGE
Niche audience Content & market Execution engagement knowledge expertise
INFORMA INVESTOR DAY 15 JUNE 2017 59 AUDIENCE AT THE CENTER
ENGAGEMENT PROCESS
5. 1. Modify/React Determine Audience (Vertical)
4. Analyse Behaviour
2. 3. Acquire Engage/Retain (Marketing Services) (Content)
INFORMA INVESTOR DAY 15 JUNE 2017 60 Informa Marketing Services GLOBAL POWERHOUSE OF BRANDS WITH DEEP AUDIENCE RELATIONSHIPS MARKETING SERVICES POTENTIAL AT INFORMA
Incremental revenue opportunity from monetising existing B2B audiences and relationships: 2017
Academic 3-4x the B2B Publishing revenue & audience £500m+ base potential Informa £1.7bn+
2016 B2B Audiences £1.2bn+ • Marketing Services >£30m • Total Penton Revenue c.£290m
Penton New Informa
INFORMA INVESTOR DAY 15 JUNE 2017 62 Future Growth & Opportunity
Patrick Martell CEO Business Intelligence
BUSINESS INTELLIGENCE
63 FULLY COMBINED INFORMA AND PENTON
PROGRESS CONTRIBUTION OPPORTUNITIES
• Integration ahead of plan • Strong niche brands • Informa subscription expertise
• Synergies on track • Subscription assets • Scale in growth verticals
• People & culture fit • Market leading events • Cross marketing of products
• Penton brand • Digital brands and expertise • Operating efficiencies
• Full systems integration • Marketing Services capability • Monetisation of Informa underway and capacity audiences/relationships
• Operating and reporting as a • US scale • International expansion single business and geo-cloning
AHEAD OF INTEGRATION PLAN AND FUTURE GROWTH OPPORTUNITIES
INFORMA INVESTOR DAY 15 JUNE 2017 64 THE FUTURE OPPORTUNITY FOR BUSINESS INTELLIGENCE
3%+ US Adjusted operating margins Consistent underlying revenue growth Further increase scale in largest market with higher growth
Marketing Consulting Product
Fully exploit Marketing Services Incremental revenue and strengthened Maintain consistent investment opportunity customer relationships in product development
Tech Talent Verticals
Stay ahead of technology development Consistent investment in people, Maximise growth opportunity and platform enhancements training and opportunities in new verticals
PREDICTABLE, GROWING, CASH GENERATIVE INFORMATION SERVICES BUSINESS
INFORMA INVESTOR DAY 15 JUNE 2017 65 2017 INFORMA INVESTOR DAY: AGENDA
Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director
Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services
Andrew Mullins Simplify, Focus, Grow CEO, Knowledge & Networking Anna Chrisman MD, Life Sciences Carolyn Dawson MD, TMT Charlie McCurdy CEO, Global Exhibitions Fred Linder MD, Global Health & Nutrition Network Stephen A. Carter Group Chief Executive
INFORMA INVESTOR DAY: 15 JUNE 2017 66 KNOWLEDGE & NETWORKING: SIMPLIFY, FOCUS, GROW
SPEAKERS TOPIC
Andrew Mullins Knowledge & Networking CEO Knowledge & Networking Simplify, Focus, Grow
Anna Chrisman Vertical profile MD Life Sciences Life Sciences
Carolyn Dawson Vertical profile MD TMT TMT
INFORMA INVESTOR DAY 15 JUNE 2017 67 OPERATING STRUCTURE: ORGANISED AROUND VERTICALS
LIFE TMT GLOBAL SSME SCIENCES FINANCE
DIVISIONAL CEO Andrew Mullins
DIVISIONAL CHIEF REVENUE CHIEF PRODUCT & MD LIFE MD MD GLOBAL MD SPECIALIST CFO OFFICER TALENT OFFICER SCIENCES TMT FINANCE EVENTS Carl Barnes Matt Harrison Jeremy Davies Anna Chrisman Carolyn Dawson Julian Kirby Shabnam Rawal
Professional Leaders Business Leaders
INFORMA INVESTOR DAY 15 JUNE 2017 68 THE MARKET AND OUR BUSINESS
MARKET CHARACTERISTICS OUR BUSINESS
• Face-to-Face • Organised around Verticals: TMT, Life Sciences, Global Finance + SSMEs • Content-driven events • Refocused on High Impact Event Brands • Large, diverse and competitive market • Community engagement model • International • Content with high utility and monetary value • Cyclicality • Delegate, Sponsorship & Partnership revenues
MARKET GROWTH OUR VERTICALS AND BRANDS US spend on B2B lead generation through conferences GLOBAL TMT LIFE SCIENCES SSME* FINANCE
$6.80bn $7.80bn
2013 2016
Source: Outsell, Informa *Specialist Subject Matter Events
INFORMA INVESTOR DAY 15 JUNE 2017 69 KNOWLEDGE & NETWORKING SNAPSHOT
The Knowledge & Networking Division organises content-driven events and programmes that provide a platform for communities to meet, network and share knowledge.
£250M+ £40M+ c.1200 150k+ Revenue Adj. Op Events Delegates
-4% 10-15% 60 1000+ Organic growth in 2016 Group Revenue Countries where run events Colleagues
REVENUE BY VERTICAL REVENUE BY TYPE REVENUE BY REGION
Finance Attendee UK Life Sciences Sponsorship North America TMT Exhibitor Europe SSMEs Advertising Rest of World
INFORMA INVESTOR DAY 15 JUNE 2017 *Charts and figures include a full year of Penton and Light Reading but exclude domestic conference businesses under review 70 SIMPLIFY, FOCUS, GROW: HISTORICAL DISTRIBUTED PORTFOLIO
OM (%) IBC South Africa
ITM IIR Boston IBC
ICBI EBD
UK Life Infoline Sciences
Trade & Energy OBJECTIVE: Dubai Simplify and organise around verticals Tax & Maritime, Energy Accounting & Agra IIR New York
IBC Singapore Euroforum WPA Eindhoven
Euroforum Euroforum Denmark Brazil Informa Australia Germany
Adam Smith
IRR Amsterdam Revenue (£m) Euroforum Switzerland
INFORMA INVESTOR DAY 15 JUNE 2017 71 2014-2017 GROWTH ACCELERATION PLAN
APPROACH KEY INITIATIVES Making it work
Reorganise around verticals Simplify
Portfolio Management
Sales Effectiveness
Focus Grow
Growth Acceleration Plan Digital capability
INFORMA INVESTOR DAY 15 JUNE 2017 72 FOCUS, SIMPLIFY, GROW: OPERATIONAL FITNESS
2013 2017
• Archipelago of businesses • Single business organised around verticals
• Multiple verticals, multiple languages and • Focus on key verticals with three main multiple geographies operational hubs (US, Europe, Dubai)
• Multiple, separate P&Ls • One unified 8-person Operating Board
• In year profit-share incentives • Growth oriented, target-based incentives
• Focus, refresh and investment in event • Limited investment experience
• Limited revenue/customer performance data • Customer analytics and CRM platform
• Refreshed platforms, digital platform and • Minimal focus on technology marketing capabilities
INFORMA INVESTOR DAY 15 JUNE 2017 73 ORGANISE AROUND VERTICALS
OM (%)
Life Global Sciences Finance
Specialist Subject Matter Events TMT
Revenue (£m)
INFORMA INVESTOR DAY 15 JUNE 2017 74 PORTFOLIO IMPROVEMENT
• Focus on high impact event brands – cut in volume output from 12,000+ events per year to <1000 12000 • Targeted exit from regional domestic conference No of Events businesses:
― Spain 10000 ― Portugal
― South Africa 8000 ― Netherlands – Amsterdam
― Netherlands - Eindhoven 6000 ― Sweden
― Denmark 4000 ― Russia
― Brazil 2000 ― Germany & Switzerland (in process)
― Singapore (in process) 0 2009 2013 2016 ― Australia (commenced)
INFORMA INVESTOR DAY 15 JUNE 2017 75 FOCUS ON HIGH IMPACT EVENT BRANDS IN VERTICALS
Top 30 Events = c. 32% of event revenue*
Global Finance Life Sciences TMT SSME
TIDES
AfricaCom
Bio Europe Bio
TV TV Connect
FinovateFall
SuperInvestor
Inside ETFs US ETFs Inside
FinovateSpring
FinovateEurope
BioEurope Spring BioEurope
SuperReturn Asia SuperReturn
BioTech Showcase BioTech
GAIM Ops Cayman GAIMOps
Internet of Things US of Things Internet
Antibody Engineering Antibody
RiskMinds International RiskMinds
5G / LTE Summit World / 5G LTE
Broadband World Forum World Broadband
FundForum Internaitonal FundForum
Boston CEOConference Boston
SuperReturn International SuperReturn
Front End of Innovation US of End Front Innovation
Channel Partners Evolution Partners Channel
Partnership in Clinical Trials inClinical Partnership
East/West CEO Conference East/West CEO
Bio Process International US International Process Bio
Critical Communications World Communications Critical
Bio Process International West International Process Bio
Bio Process International Europe International Process Bio
TMRE: The Market Research Event Research Market The TMRE: Channel Partners Conference & & Conference Expo Partners Channel
INFORMA INVESTOR DAY 15 JUNE 2017 * Excluding five domestic conference businesses under review 76 SALES EFFECTIVENESS AND DIGITAL CAPABILITY
SALES EFFECTIVENESS DIGITAL CAPABILITY
• Commercial directors and key accounts • Year round customer engagement
• New remuneration structure – rewarding short and • Enhanced digital experience with online payment medium term performance capability
• Customer needs and benefits driven • Specialist talent: insight, campaign excellence, digital content marketing and agile development • Salesforce implementation: campaign planning, transparency and forecasting • Standards and best practise for Content Marketing, SEM, SEO, PPC, Paid Social etc. • Tools and training to drive productivity • New business models for further exploitation across • Sales collateral and pricing capabilities the platform
SALES PEOPLE NOW SPEND DIGITAL AS A MARKETING AND THEIR TIME SELLING ENGAGEMENT PLATFORM
INFORMA INVESTOR DAY 15 JUNE 2017 77 FROM TRANSACTION TO COMMUNITY ENGAGEMENT MODEL
2014 2017 +
Customer & F2F Digital Products Audience Need Products
• Digital Training • Public Training LEARNING & • eNewsletters BUY LEARN SELL INFORM • Onsite Training SHARING • White Papers • SME Speakers (Insight Gathering) • Blogs/Vlogs • Workshops • Podcasts
CONNECTING • Sponsorship/ • Webinars (Brand Building, Branding PARTNER CONNECT PARTNER CONNECT • Native Advertising Thought Leadership & • Exhibition Stands • Custom Research Lead Generation) • Informal Networking
• Structured Attendees/audience Customers PARTNERING Networking • Digital Communities • VIP Sessions Delegate Sponsorship & Exhibition Revenues Revenues TRANSACTING • 1-2-1 Meetings • Ecommerce
RESTRICTED TRANSACTIONAL ENGAGEMENT-BASED, F2F, DIGITAL AND F2F REVENUE MODEL KEY ACCOUNT-LED REVENUE MODEL
INFORMA INVESTOR DAY 15 JUNE 2017 78 THE NEW KNOWLEDGE & NETWORKING DIVISION
FEATURES OF OUR FEATURES OF OUR MULTIPLE REVENUE VERTICALS BUSINESS STREAMS
Growth Community brands Delegates
International Specialist content Sponsors & exhibitors
Technology Relationships Partnering
Innovation Partnering Presenter/demo
Sub-communities High engagement Marketing services
Horizontal links Customer insight Learning/academies
ATTRACTIVE AND SUSTAINABLE MODEL FOR FUTURE GROWTH
INFORMA INVESTOR DAY 15 JUNE 2017 79 GLOBAL FINANCE VERTICAL SNAPSHOT
FINANCE VERTICAL CHARACTERISTICS REVENUE MIX
• Large and growing • International financial markets Attendee Sponsorship • Defined, niche communities 2016 Exhibitor • Technology disruption Other • Product innovation
KEY BRANDS GEOGRAPHIC FOOTPRINT
UK North America 2016 Europe
GLOBAL FINANCE Rest of World
INFORMA INVESTOR DAY 15 JUNE 2017 *Charts are 2016, excluding Penton assets, Light Reading and domestic conference businesses under review 80 Life Sciences Vertical
Anna Chrisman MD Life Sciences LIFE SCIENCES SNAPSHOT
LIFE SCIENCES VERTICAL CHARACTERISTICS REVENUE MIX
• Rising global healthcare investment • Scientific progress and discovery Attendee Sponsorship • Defined niche communities 2016 Exhibitor • Investment in R&D and innovation Other • Collaboration, knowledge exchange and open source solutions
KEY BRANDS GEOGRAPHIC FOOTPRINT
North America Europe 2016
Rest of World LIFE LIFE SCIENCES
INFORMA INVESTOR DAY 15 JUNE 2017 *Charts are 2016, excluding Penton assets, Light Reading and domestic conference businesses under review 82 LIFE SCIENCES: CATEGORIES AND BRANDS
BBC
EBD
Emerging Biopharma Clinical Science Processing
INFORMA INVESTOR DAY 15 JUNE 2017 83 PROFILE
7 $20M+ International brands Revenue 50K+ Meetings 34K+ 16K+ Attendees Companies
• Attractive vertical – Biotech growth • Unique model – lead generation through Partnering • Effective, targeted and valuable networking • PartneringOne proprietary software platform • Very high retention rates • Consistent levels of growth
INFORMA INVESTOR DAY 15 JUNE 2017 84 VALUE THROUGH PARTNERING
…the best opportunity to meet people and …one of the essential events to attend, “ expand the network creating new relationships… Partnering is the way to go…
Companies with a certain One of the maturity need to certainties of my attend… calendar…
Perfect networking opportunities via What can I say…I met with Bayer, MSD, Merck, JNJ, SGS, Capital PartneringOne… Health, Quintiles IMS, Covance…where else could I do that? ” INFORMA INVESTOR DAY 15 JUNE 2017 85 FESTIVALS: BIOTECH WEEK BOSTON
Monday Tuesday Wednesday Thursday Host Event/Activity Sept. 25 Sept. 26 Sept. 27 Sept. 28 KEY FACTS BioProcess International Conference & • 4500 attendees Exhibition Cell & Gene Therapy Bioprocessing & • Scientists, investors, Commercialization technologists and Viral Safety executives from 37+ Clinical Developments in Cell & Gene countries Therapy • 6 content driven BWB Festival Keynotes events, one partnering Brewery Tour/Offsite Excursions meeting, numerous joint social & Celebration of Science networking Women’s Dinner components
Battle of the Bands • 450+ speakers
BioPharm America • 300+ exhibitors
Start-up Pitch Competition • 2500+ one-to-one Cell & Gene Therapy CEO meetings
Diversity Panel • Celebrating advances in science, showcasing Boston Life Sciences Disruptors the Boston life science community Xconomy Awards at Biotech Week Boston
CRO/CMO Symposium TMT Vertical
Carolyn Dawson MD TMT TMT SNAPSHOT
TMT VERTICAL CHARACTERISTICS REVENUE MIX
• Growing global industry • Defined niche communities Attendee Sponsorship • Technology convergence and change 2016 Exhibitor • Internet of Things growth Advertising • High levels of innovation
KEY BRANDS GEOGRAPHIC FOOTPRINT
UK North America
TMT 2016 Europe Rest of World
INFORMA INVESTOR DAY 15 JUNE 2017 *Charts are 2016, excluding Penton assets, Light Reading and domestic conference businesses under review 88 TMT VERTICAL: CATEGORIES AND BRANDS
Traditional High-growth, large-scale telecoms events events focused on new tech
Telco Networks Broadband Media Critical London Connecting Cloud Connected 5G Tech MVNO & Services & Optical Networks Comms. Tech Week Africa & Enterprise Innovation
YEAR-ROUND DIGITAL COMMUNITY PLATFORMS
INFORMA INVESTOR DAY 15 JUNE 2017 89 NEW LAUNCHES: INTERNET OF THINGS WORLD
WORLD’S LARGEST IoT audience
DIGITAL REACH
• 25,000+ attendees • 18 events • In 8 countries
• Database of 23M+ IN-PERSON • 12 verticals / industries EVENTS • 15,000+ IoT leads produced for clients in 2016
INFORMA INVESTOR DAY 15 JUNE 2017 90 IoT BRAND PORTFOLIO
INFORMA INVESTOR DAY 15 JUNE 2017 91 FESTIVALS: LONDON TECH WEEK PROFILE
Monday Tuesday Wednesday Thursday Friday
Opening Ceremony 200+ Crowd Sourced events across the city
LeadersIn Tech Summit
VRAR: Connected Cars: IoT Europe: 5G: TechXRL8 Cloud & DevOps: Apps World: Kairos: AI Summit
London Tech Week Academy
DRL Drone Racing
Prince’s Trust Gala Dinner
Tech Week Awards Europa’s Festival Concert @ Wembley Arena featuring Hans Zimmer
TechXLR8 Awards
Tech Week TV Future Growth & Opportunities
Andrew Mullins CEO Knowledge & Networking FUTURE GROWTH & OPPORTUNITIES
Steady Focus
Underlying revenue growth Adjusted Operating Margin Strengthen core vertical positions
Customer Network Data
Broaden and deepen relationships Maximise networking and partnering Actionable insights from data capability
Digital Multiple X-Div
Community engagement, Revenue streams including Cross-divisional revenue content and revenue Marketing Services opportunities
FOCUSED AND GROWING BUSINESS WITH MULTIPLE REVENUE STREAMS
INFORMA INVESTOR DAY 15 JUNE 2017 94 STEPHEN A. CARTER GROUP CHIEF EXECUTIVE INTERNATIONAL EXPANSION
INFORMA INVESTOR DAY: 15 JUNE 2017 95 INTERNATIONAL EXPANSION THROUGH TARGETED M&A
GAP ACQUISITION STRATEGY
• US Exhibitions focus • Focus on quality of assets, strategic fit • International scale in verticals • Target growth regions and verticals
Construction & Health & Nutrition Life Sciences Agriculture International Yachting Real Estate
Science, Tech Humanities & Beauty & Aesthetics Pop Culture Transportation & Medical Social Science
Anderson Books
INFORMA INVESTOR DAY: 15 JUNE 2017 96 GEOGRAPHIC BALANCE AND BREADTH
Revenue by geography
ROW China
Middle East ROW
Americas China UK 2016 Middle East PF 2013
UK Continental Europe Americas
Continental Europe
Revenue Revenue £1.1bn £1.7bn+
INFORMA INVESTOR DAY: 15 JUNE 2017 97 2016 charts are pro-forma estimates, including a full year of Penton and YPI and excluding Domestic Conferences under review GROUP’S NORTH AMERICAN BALANCE AND BREADTH
$1.1bn+ revenue
$340m+ $350m+ $350m+ COUNTRY HQ AP revenue GE revenue BI revenue VERTICALS
3000+ 80+ 50%+ 60%+ CONTENT Colleagues exhibitions Group sales Group profit SHARED SERVICES
INFORMA INVESTOR DAY: 15 JUNE 2017 98 2017 INFORMA INVESTOR DAY: AGENDA
Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director
Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins CEO, Knowledge & Networking Anna Chrisman MD, Life Sciences Carolyn Dawson MD, TMT
Charlie McCurdy Expansion, Growth and Scale CEO, Global Exhibitions Fred Linder MD, Global Health & Nutrition Network Stephen A. Carter Group Chief Executive
INFORMA INVESTOR DAY: 15 JUNE 2017 99 GLOBAL EXHIBITONS: EXPANSION, GROWTH AND SCALE
SPEAKERS TOPIC
Charlie McCurdy Global Exhibitions
CEO Global Exhibitions International Expansion, Growth and Scale
Fred Linder Vertical Profile MD Global Health & Nutrition Network Health & Nutrition
INFORMA INVESTOR DAY 15 JUNE 2017 100 THE MARKET AND OUR BUSINESS
MARKET CHARACTERISTICS OUR BUSINESS
• Face-to-Face • The Challenger Operator • Transaction-driven events • Top 3 organiser globally • Fragmented • 14 of TSNN Top 250 US Exhibitions (excludes Agriculture and International Yachting Exhibitions) • International • Revenue visibility and cash flow • Barriers to entry • Market Maker Strategy
MARKET GROWTH OUR VERTICALS AND BRANDS
CONSTRUCTION & HEALTH & AGRICULTURE REAL ESTATE NUTRITION
$30bn INTERNATIONAL BEAUTY & $24bn LIFE SCIENCES YACHTING AESTHETICS
2014 2020
INFORMA INVESTOR DAY 15 JUNE 2017 101 GLOBAL EXHIBITIONS SNAPSHOT
The Global Exhibitions Division organises transaction-oriented Trade Shows and Exhibitions around the world, enabling specialist communities to meet face to face and conduct business.
£500M+ £180M+ c.200 1.9M SQM+ Revenue Adj. Op Brands Exhibition Space
5%+ c.30% 1100+ c.2M Underlying Growth Group Revenue Colleagues Visitors
REVENUE BY VERTICAL REVENUE BY TYPE REVENUE BY REGION
Construction & RE Health & Nutrition North America Life Sciences Exhibitor MENA Aviation 2016PF Agriculture 2016PF Attendee 2016PF ROW International Yachting Sponsorship & Ads Europe Beauty & Aesthetics Utilities UK Pop Culture Other
INFORMA INVESTOR DAY 15 JUNE 2017 *Charts are pro-forma to include a full year of Penton and YPI Inc 102 2014-2017 GROWTH ACCELERATION PLAN
Accelerate and scale a small collection of independent Objective exhibitions into a top-performing, global Market Maker
• Identify attractive, growing global vertical markets
• Expand internationally, led by the US, through targeted acquisition programme
• Strengthen management capability through selective additions
• Invest in common operational platforms in key functional areas
• Leverage proven show launch capabilities worldwide
• Create regional hubs and super-hubs for operational and admin support
• Enhance value proposition to both Exhibitors and Visitors
SUSTAINABLE ABOVE-INDUSTRY UNDERLYING GROWTH AND MARGINS
INFORMA INVESTOR DAY 15 JUNE 2017 103 INTERNATIONAL EXPANSION, GROWTH AND SCALE
APPROACH KEY INITIATIVES Making it work
International expansion programme Expand
Build/ strength in Verticals
Market maker Sales, Customer & Marketing Excellence
Data Scale Revenue+: Growth Acceleration Plan Market Maker strategy
INFORMA INVESTOR DAY 15 JUNE 2017 104 INTERNATIONAL EXPANSION, GROWTH AND SCALE
BUILD BUY
VOLUME CROSS-SELL CONSTRUCTION NUTRITION
Product innovation, International scale Hanley Wood Virgo Publishing, new customers within verticals Exhibitions, Penton (New Hope Dwell-on-Design Network)
PRICING LAUNCH LIFE SCIENCES AGRICULTURE
Tiered and value based New launches and geo- FIME, AgriShow, Penton initiatives cloning Mediconex, Eurogin Information Services
PRODUCTIVITY M’MAKER BEAUTY YACHTING
Sales effectiveness, Sponsorship, online China Beauty, FACE, Fort Lauderdale Boat CRM, Vendor contracts discovery, data insight, Vegas Aesthetics Show, Palm Beach Boat lead-gen Show (YPI Inc)
INFORMA INVESTOR DAY 15 JUNE 2017 105 INTERNATIONAL EXPANSION: THE CHALLENGER OPERATOR
GROWTH IN GLOBAL EXHIBITIONS REVENUE
Americas Exhibitions business ROW in 2009 Middle East • <$100m revenue • <1% in Americas
Global Exhibitions Division in 2017
• >$600m revenue • >60% in Americas
2009 2017
INFORMA INVESTOR DAY 15 JUNE 2017 106 FROM EXHIBITION ORGANISER TO MARKET MAKER
Leverage customer relationships and data/digital capabilities to connect buyers and sellers in new and more powerful ways
FOR ATTENDEES FOR EXHIBITORS FOR INFORMA
• Search & Discover products and • Year-round quality lead generator • Data to understand attendees / services inside and outside exhibition exhibitors
• Interact with exhibitors • Connections beyond the floor • Expand beyond the floor
• Pre-show planning • Access to active buyers • Access to new budgets
• Post-show follow-up • Data to act upon market insights • Reinforce exhibition performance and quality of attendance
INFORMA INVESTOR DAY 15 JUNE 2017 107 OPERATIONAL INITIATIVES: CUSTOMER VALUE OPPORTUNITY
TYPICAL COST/INCOME MIX EXHIBITOR VALUE DRIVERS
TRANSACTIONS & LEADS Raw space rent Stand costs Number and quality of visitors to stand Staff travel, EXHIBITOR accommodation and food Other VALUE DRIVERS
• Matchmaking • Stand location • Community content • Size / flexibility • Booking time • Column-free stand • Specific hall at venue • Exhibition specific (eg Hosted buyer programmes) • Stand layout (no of open sides) Raw space rent ORGANISER • Marketing communications Other services • Build-up days • Shell schemes Online activities • Upper/lower hall floor • Additional services (eg travel booking)
INFORMA INVESTOR DAY 15 JUNE 2017 Source: JWC, Company data 108 OPERATIONAL INITIATIVES: CUSTOMER VALUE OPPORTUNITY
THE INTERNATIONAL SURFACE EVENT (TISE) CASE STUDY
• Exhibitions typically have a cost-based approach with early- bird, volume and corner variations to list price
• New pricing approach for TISE 2018 ― Dynamic, value-based options introduced ― Packages aligned to exhibitor preferences ― Customer service focus – early communication programme, appointment-led, sophisticated on-site sales office
• Targeting incremental yield increase of 3-5%
• Increase in rebooking rate and onsite deposits
3-YEAR PROGRAM TO ROLL OUT CUSTOMER VALUE INITIATIVES
INFORMA INVESTOR DAY 15 JUNE 2017 109 OPERATIONAL INITIATIVES: PRODUCT INNOVATION
DRIVING GROWTH THROUGH BRAND EXPANSION
• Leading Healthcare Exhibition in • A section of Arab Health focused on Middle East laboratory equipment • World Trade Center approaching • Strong brand in its own right with a full capacity defined community • Ongoing demand • Growing demand DELIVERING TWO POWERHOUSE BRANDS, RUN CONSECUTIVELY • Additional capacity to sell: • Scale launch in Jan 2017: Top 20 show 4400+ exhibitors in Jan 2017 on debut with 700+ exhibitors • Future growth runway • Future growth runway
STRONG AGGREGATE GROWTH IN 2017 AND REBOOKING FOR 2018
INFORMA INVESTOR DAY 15 JUNE 2017 110 FROM EXHIBITION ORGANISER TO MARKET MAKER
INFORMA INVESTOR DAY 15 JUNE 2017 111 INTERNATIONAL EXPANSION: OPERATIONAL HUBS
London Toronto Boulder
Dallas Shanghai Dubai
Sao Paolo
INFORMA INVESTOR DAY 15 JUNE 2017 112 FULL COMBINATION OF PENTON AND GLOBAL EXHIBITIONS
STRONG PENTON COMPLEMENTARY EFFECTIVE COMBINATION BRANDS INFORMA BRANDS • Smooth integration into GE
― Agriculture AGRICULTURE
― Health & Nutrition
― Waste
HEALTH & HEALTH NUTRITION ― Aviation
• Updated management structure
• Administrative functions aligned Y Y & WASTE
SUSTAINABILIT (HR, Finance, Ops)
• Full systems integration progressing
NEW VERTICAL AVIATION
OPERATING AND REPORTING AS A SINGLE BUSINESS
INFORMA INVESTOR DAY 15 JUNE 2017 113 BENEFITS AND OPPORTUNITIES FROM A FULL COMBINATION
Leverage relationships within Verticals and internationally CROSS SELLING eg Agriculture, Health & Nutrition
GEO-CLONING Extend select Penton brands internationally
OPERATIONS Efficiencies from duplication, shared services and Exhibitions services
CONTRACTS Improved terms on facilities, venues and hotels; consolidate vendor management
Roll-out GAP-enabled digital platforms for marketing, sales, TECHNOLOGY event management and websites. Develop Market Maker proposition
INFORMA INVESTOR DAY 15 JUNE 2017 114 FOCUS ON SELECT, ATTRACTIVE GROWTH VERTICALS
THE FEATURES OF ATTRACTIVE VERTICALS IN EXHIBITIONS
INNOVATION FRAGMENTED HIGH VALUE INTERNATIONAL GROWING
Construction & Life Sciences Agriculture International Yachting Health & Nutrition Real Estate
Strength in US, Strength in US, Strength in US Strength in US Strength in US, Canada and Middle East, Asia, and Brazil and Europe Europe and Asia Middle East Europe & Africa
INFORMA INVESTOR DAY 15 JUNE 2017 115 Health & Nutrition Vertical
Fred Linder MD Global Health & Nutrition Network HEALTH & NUTRITION VERTICAL SNAPSHOT
HEALTH & NUTRITION VERTICAL REVENUE MIX
• B2B • Global Exhibitor Attendee • Fragmented Digital • Growth Other • Regulation, policy and health drivers
KEY BRANDS GEOGRAPHIC FOOTPRINT
North America Europe Asia
INFORMA INVESTOR DAY 15 JUNE 2017 117 THE MARKET: TIPPING POINT INTO THE MAINSTREAM
GLOBAL HEALTH & NUTRITION MARKET GROWTH DRIVERS
INGREDIENTS FINISHED PRODUCTS FRAGMENTATION Highly fragmented supply chain • Pre and probiotics • Functional foods & • Vitamins & minerals beverages • Proteins & amino acids • Natural foods & beverages • Non-processed Global market, with local trends and • Dietary supplements GLOBAL & LOCAL preferences
US NATURAL PRODUCTS FUTURE GROWTH CONSUMER Rising demand for healthy and $bn transparent food supply - clean label, +122% DEMAND 200 Supplements $295bn natural, organic, Free-From Natural foods 2022 150 Functional Falling trust in large brands paves way foods NEW PLAYERS 100 $205bn for innovation and niche players 2016
50 UN Action on Nutrition and PUBLIC POLICY 0 +6% Sustainable Development Goals 2006 2016 CAGR
INFORMA INVESTOR DAY 15 JUNE 2017 118 GLOBAL HEALTH & NUTRITION NETWORK
$110m+ 10%+ 9 125k+ 170k+ revenue growth major brands SQM exhibition space attendees
US FINISHED GOODS
Las Vegas Geneva Los Angeles Baltimore New Jersey Anaheim EUROPE/ASIA Austin Guangzhou US INGREDIENTS INGREDIENTS
Singapore
UNIQUE POSITION ACROSS THE INTERNATIONAL SUPPLY CHAIN
INFORMA INVESTOR DAY 15 JUNE 2017 119 GROWTH AND OPPORTUNITIES
1. Maintain positive momentum and growth across all brands
2. Full combination of Informa and Penton brands with unified leadership across three hubs
Further increase scale to address the full industry value chain and deliver solutions to 3. customers on a global basis
Leverage Informa international network to extend brands and customer relationships; 4. maximise the cross-sell opportunity
Apply digital capability to strengthen market position, deepen customer relationships and 5. generate ancillary revenues
MARKET MAKER FOR THE GLOBAL HEALTH AND NUTRITION INDUSTRY
INFORMA INVESTOR DAY 15 JUNE 2017 120 SPOTLIGHT ON NATURAL PRODUCTS EXPO WEST
Education & Anaheim networking
NEXTY awards Annual over 5 days
500+ new 40,000+ sqm exhibitors in 2017
2,600+ exhibitors 80,000+ attendees
LARGEST INDIVIDUAL BRAND IN HEALTH & NUTRITION MARKET
INFORMA INVESTOR DAY 15 JUNE 2017 121 SPOTLIGHT ON NATURAL PRODUCTS EXPO WEST
INFORMA INVESTOR DAY 15 JUNE 2017 122 Future Growth & Opportunities
Charlie McCurdy CEO Global Exhibitions FUTURE GROWTH AND OPPORTUNITIES
5%+ Market leading Cash
Consistent underlying revenue growth Adjusted operating margins Consistently strong profit conversion
International Scale Verticals
Further balance and breadth Fully leverage size benefits Build further focused scale
Consolidator Combine Digital
Further targeted, enhancing M&A Maximise the Penton opportunity Growth in data-driven ancillary revenues
TOP-PERFORMING GLOBAL MARKET MAKER
INFORMA INVESTOR DAY 15 JUNE 2017 124 2017 INFORMA INVESTOR DAY: AGENDA
Stephen A. Carter Group Chief Executive Gareth Wright Group Finance Director
Patrick Martell CEO, Business Intelligence Gary Nugent MD, Business Intelligence Lara Boro MD, Business Intelligence Kate Spellman President, Marketing Services Andrew Mullins CEO, Knowledge & Networking Anna Chrisman MD, Life Sciences Carolyn Dawson MD, TMT Charlie McCurdy CEO, Global Exhibitions Fred Linder MD, Global Health & Nutrition Network
Stephen A. Carter Future Growth & Opportunity Group Chief Executive
INFORMA INVESTOR DAY: 15 JUNE 2017 125 STEPHEN A. CARTER GROUP CHIEF EXECUTIVE FUTURE GROWTH & OPPORTUNITY
INFORMA INVESTOR DAY: 15 JUNE 2017 126 2014-2017 GROWTH ACCELERATION PLAN
GAP AMBITION
• Aggregate underlying growth of 3%+ GROWTH • Platform for sustainable future growth • All four Divisions in growth going into 2018
• Functional discipline and expertise CAPABILITY • Operational fitness • Capacity and capability for future scale
INFORMA INVESTOR DAY: 15 JUNE 2017 127 DIVISIONAL GAP FOCUS
Global Exhibitions Business Intelligence • Separation • Management • Expansion • Portfolio • Data • Performance
Academic Publishing Knowledge & Networking • Stability • Simplification • Technology • Focus • Handover • Verticals
INFORMA INVESTOR DAY: 15 JUNE 2017 128 DIVISIONAL GAP DELIVERY
Global Exhibitions Business Intelligence • Growth & Scale • Consistent growth • Balance & Breadth • Repeat revenue • Market Maker • Upsell
Academic Publishing Knowledge & Networking • Resilient growth • Growth • Steady margins • Profitability • Strong cash flow • Community engagement
INFORMA INVESTOR DAY: 15 JUNE 2017 129 Stephen A. Carter Patrick Martell Group Chief Executive CEO Business Intelligence
Gareth Wright Lara Boro Group Finance Director Group MD Business Intelligence
Richard Menzies-Gow Gary Nugent Director of IR, Communications & Brand Group MD Business Intelligence
Alex Roth Kate Spellman Director of Strategy & Planning President, Marketing Services Q&A
Andrew Mullins Charlie McCurdy CEO Knowledge & Networking CEO Global Exhibitions Anna Chrisman Fred Linder MD Life Sciences MD Global Health & Nutrition Network Carolyn Dawson MD TMT
INFORMA INVESTOR DAY: 15 JUNE 2017 130