Understanding Informa
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UNDERSTANDING INFORMA UNDERSTANDING Annual Report and Financial 2014 Statements UNDERSTANDING INFORMA Annual Report and Financial Statements 2014 Whilst continuing to deliver STRATEGIC REPORT FINANCIAL STATEMENTS positive results, 2014 was a 2 About us 108 Independent auditor’s report 4 Chairman’s statement 112 Consolidated Income Statement year of Measured Change. 6 Highlights of the year 113 Consolidated Statement This report reviews those 8 Informa at a glance of Comprehensive Income 12 Group Chief Executive’s Review 114 Consolidated Statement changes and explains what 19 Business model of Changes in Equity Informa is and does today. 20 Understanding our Divisions 115 Consolidated Statement 23 Academic Publishing of Financial Position We outline the Group divisional 29 Business Intelligence 116 Consolidated Cash Flow Statement structure p8, Group strategy p12, 35 Global Exhibitions 117 Notes to the Consolidated and explain how our business 41 Knowledge & Networking Financial Statements model creates value p19. 47 Global Support 186 Company Balance Sheet 52 Business review 187 Notes to the Company We highlight how we measure 56 Financial review Financial Statements performance p60, manage 60 Key performance indicators 193 Five Year Summary 62 Principal risk factors risk p62 and celebrate talent 66 Corporate responsibility COMPANY INFORMATION and entrepreneurialism. 194 Legal notice GOVERNANCE 195 Shareholder information 70 Board of Directors 72 Advisers 73 Directors’ Report 78 Corporate Governance Statement 84 Nomination Committee Report 86 Audit Committee Report 90 Remuneration Report CONNECTION. INSIGHT. ADVANTAGE. Informa’s global portfolio of knowledge, event and information- based businesses connects people, providing unrivalled access to high quality, specialist intelligence and links across commercial, professional and academic communities. Our content and connectivity deliver insights, networks and competitive advantage, enabling individuals, organisations and communities to connect, work smarter and achieve their goals. ABOUT US WHO WE ARE WHAT WE DO Informa operates at the heart of the Knowledge Informa’s global portfolio of knowledge, event and and Information Economy. It is one of the world’s information-based businesses connects people, leading business intelligence, academic publishing, providing unrivalled access to high quality, knowledge and events businesses. With more than specialist intelligence and links across commercial, 6,500 employees globally, it has a presence in professional and academic communities. At a all major geographies, including North America, Group level we provide the stewardship, strategy South America, Asia, Europe, the Middle East and structure that enable these businesses to and Africa. focus on being the very best they can be. Our ACADEMIC PUBLISHING Division In BUSINESS INTELLIGENCE we offer publishes specialist academic books expert analysis of data and information and journals. We produce unique, that delivers unique insights to create trusted content by expert authors, competitive advantage. Across five core spreading knowledge and promoting industry sectors, we help our customers discovery globally. We aim to broaden identify new opportunities, understand thinking and advance understanding, and mitigate risk and make better providing academics and professionals decisions faster. with a platform to share ideas and realise their individual potential. p.29 p.23 2 Informa PLC Annual Report 2014 www.informa.com WHY INVEST? OUR STRATEGY Informa has strong Brands that are well positioned The 2014-2017 Growth Acceleration Plan is STRATEGIC REPORT in attractive markets, providing a framework for Informa’s strategy to accelerate growth and delivering consistent returns. Our business model improve the returns generated across all four is robust and highly cash generative, allowing Operating Divisions. It is referred to throughout us to balance organic investment with targeted this report and covers six key areas: acquisitions and the payment of dividends to Operating structure shareholders. This is reflected in the commitment Management model to grow annual dividends by a minimum of 2% per Portfolio management annum throughout the period of the 2014-2017 GOVERNANCE Acquisition strategy Growth Acceleration Plan. Investment Funding STATEMENTS STATEMENTS FINANCIAL FINANCIAL In GLOBAL EXHIBITIONS we In KNOWLEDGE & NETWORKING, we connect Groups seeking to identify nurture, build and connect communities new contacts, develop relationships, through the exchange of insights and improve and expand their business. strategic thinking. We create platforms We bring communities together to online and through face-to-face events share information, gain inspiration that facilitate learning and networking, and secure new business, creating helping people build knowledge, work platforms for organisations to build smarter and become leaders in their field. profitable alliances, create value and drive commercial success. p.41 p.35 www.informa.com Annual Report 2014 Informa PLC 3 STRATEGIC REPORT CHAIRMAN’S STATEMENT hen I introduced our last Annual Report, growth plan put in place by Stephen and his strengthened I marked my fifth year as your Non- management team. Executive Chairman by highlighting the Your new management team has successfully launched and W significant leadership change at Informa. begun to implement a new growth strategy, whilst maintaining Twelve months on, the “wind of change” a disciplined operational focus in our balanced portfolio of has been felt in almost every corner of businesses. This has resulted in strong performances in two the Company. of our four Operating Divisions, and renewed focus on growth This change has been led by Stephen A. Carter, who became and reorganisation at the two remaining business areas. your Group Chief Executive at the beginning of 2014. When Global Exhibitions was the highlight, as organic revenue Stephen was appointed, his mandate from the Board was and profits rose strongly in a healthy Exhibitions market. to manage the transition effectively and seek to position the This performance was enhanced by a number of targeted Group to ensure we are extracting full value from the attractive acquisitions, including the Division’s first major foray into the markets in which we operate. important US market. This helps to lift the annualised revenue I am pleased to report solid progress following an initial of Global Exhibitions to around £250m annually, reinforcing period of Measured Change, which led in mid-2014 to the its position as one of the leading Exhibition groups globally. announcement of the Growth Acceleration Plan. This plan, The Academic Publishing Division also performed well, which encapsulates the Group strategy through to 2017, delivering consistent organic growth in a benign budgetary is explained in detail within this Strategic Report, including environment. Its success is a testament to the strength of our reviews of each of our Operating Divisions. academic Brands and our differentiated approach to authors BUSINESS HIGHLIGHTS and customers. Towards the end of the year, we transferred In the last financial year, basic earnings per share rose to 40.3p, our Medical Journals business from Business Intelligence and the Board recommended a final dividend of 12.9p, lifting to Academic Publishing. This will add valuable scale to our the total dividend per share by 2% to 19.3p (2013: 18.9p). This journal portfolio and generate cost savings, and should enable dividend reflects the Board’s confidence in the strategy and us to target the institutional market with its products much more effectively. 4 Informa PLC Annual Report 2014 www.informa.com The Business Intelligence and Knowledge & Networking Our Group has a wide array of talented individuals, and we will Divisions had a more difficult year. Some key end markets invest continually in developing and strengthening this most STRATEGIC and geographies remain challenging but we also recognised valuable of resources. In 2014, Tom Moloney was appointed to REPORT a need to make changes to the operating structure and focus the new post of Director of Talent & Transformation. Tom, the of these businesses. This is already under way, following the former Chief Executive of media group EMAP, has significant appointment of new Divisional Management Teams in 2014, experience in change management. His appointment reflects and I have confidence that we will see steady operational the importance we place on this aspect of the business. progress by both businesses through 2015. With people comes culture. At Informa, we believe our culture Your Board also supports the greater focus within our “fifth” is unique, reflecting the value we place on our staff and the Division, Global Support. This Division plays an increasingly freedom we provide them to innovate, develop and succeed. important role in generating value across the Group. Management GOVERNANCE This extends to our belief in a balanced and inclusive working worked hard to improve our Shared Services function in 2014, environment, where everyone has an equal opportunity to consolidating the number of geographic hubs operated by participate and flourish. For example, the latest Group statistics the Company and delivering back-office efficiencies. show that more than half of our employees are female (57% in STRATEGY – 2014–2017 GROWTH 2014 and 2013). ACCELERATION PLAN In terms of remuneration, the role of your Board Remuneration The Board welcomes the