Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
2002 INTERIM RESULTS PowerPoint Presentation
Download Presentation
2002 INTERIM RESULTS

2002 INTERIM RESULTS

404 Views Download Presentation
Download Presentation

2002 INTERIM RESULTS

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. 2002 INTERIM RESULTS

  2. Financial Results Six month performance 2002 H1 2001 H2 2001 H1 Continuing turnover (£m) PBT * (£m) EPS * (p) Dividend per share (p) Net cash (£m) Margin (%) 412.8 40.7 8.9 3.0 50.4 8.8 441.1 25.1 6.3 1.0 49.3 4.9 489.4 71.7 11.8 11.0 250.7 12.2 2 *before exceptionals and amortisation of intangibles

  3. 2002 Review of First Half Year • Very challenging market conditions • Strong performance from businesses in Asia, UK and Europe • underlying profit of £21m, up 68% on £13m in H1 2001 • Lower US revenue mitigated by continuing action on costs • CMP Media revenue down 38 % on 2001 • PR Newswire revenue down 21 % on 2001 • Market share gains continue • NOP UK sales up 3% to end July, BMRA down 2.6% to end June • PRN Disclose over 10% of LSE announcements • CMP Media H1 29% vs 25%

  4. 2002 Review of First Half Year • Improvement on second half of 2001 • EPS of 8.9p vs 6.3p • Additional £55m of cost savings secured • Now total of £165m (24%) off 2000 fixed cost base • 113.5% cash conversion – net cash positive £50.4 m • Balance sheet strength is a competitive advantage Controlling costs to deliver profits

  5. Implementation of Strategy • Building a leader in business information by investing in core businesses • Emphasis on products and value • Organic investment programme increased to extend product range • Improving competitive position • Improving operational leverage • Retaining strong balance sheet • Building and realising value in non core assets

  6. Leverage Quality of Earnings Acquisition Risk Dependency on US High Tech Longer Term Growth No net borrowings Over 100% cash conversion andprudent accounting policies Committed to areas of expertise Cautious on values High Tech currently loss making Attractive upside potential Market leading positions in growth markets Key Investor Issues GENERAL MARKET ISSUES UBM SPECIFIC ISSUES

  7. Outlook • UK, Asia and Europe • trading well, with strong margin growth in UK • US • continuing low visibility • trading climate difficult with deflationary pressures and no expectation of any improvement in 2002 • NOP • UK and US syndicated trading well • Healthcare and US ad hoc revenue pressures

  8. Outlook • PR Newswire • corporate scandals and cost pressure curtailing client expenditure • CMP Media • planning assumption • dollar revenues down 45 per cent on 2000 • further efficiencies being delivered • approaching break-even in H2 • Margin • on target to improve margins in H2 to 9% to 10% (4.9% H2 2001) • 2003 margins should improve to in excess of 11%

  9. FINANCIAL REVIEW

  10. Financial Results Six months to 30 June Change % 2002 2001 (15.7) (38.8) - (9.9) (86.3) (43.2) (31.5) (25.0) - 489.4 59.5 (19.1) 40.4 31.3 71.7 (14.3) 11.8 11.0 Continuing turnover (£m) Continuing operating profit* (£m) Discontinued operating profit* (£m) Total operating profit* (£m) Interest (£m) PBT * (£m) Taxation* (£m) EPS * (p) Dividend per share (p) 412.8 36.4 - 36.4 4.3 40.7 (9.8) 8.9 3.0 *before exceptionals and amortisation of intangibles

  11. Financial Results 1st half 2002 Vs 2nd half 2001 2002 H1 2001 H2 Change % Turnover (£m) Total operating profit* (£m) Interest (£m) PBT * (£m) Taxation* (£m) EPS * (p) Dividend per share (p) 441.8 20.6 4.5 25.1 (10.7) 6.3 1.0 (6.6) 76.7 (4.4) 62.2 8.4 41.3 - 412.8 36.4 4.3 40.7 (9.8) 8.9 3.0 *before exceptionals and amortisation of intangibles

  12. Cash ConversionSix months to 30June 2002 £m’s Operating profit (before goodwill & exceptionals) Depreciation Capex Working capital/other Operating cash inflow Cash conversion 36.4 12.1 (5.8) (1.4) 41.3 113.5%

  13. Further Cash FlowsSix months to 30June 2002 £m’s Operating cash inflow Investments (including Channel 5) Dividends paid Tax refunded Net interest paid Payments relating to prior year disposals Payments against restructuring and exceptionals Other Increase in cash in the period 41.3 (6.1) (4.3) 14.4 (5.5) (25.0) (23.3) 9.6 1.1 13

  14. Segmental AnalysisSix months to 30 June Operating Profit Group Turnover 2002 £m Change % 2002 £m Change % Underlying % Underlying % 101.5 57.5 136.5 25.5 62.3 29.5 412.8 NOP World PR Newswire CMP Media CMP Asia CMP Information UAP Total Continuing 33.4 (20.5) (37.8) 5.8 (8.1) - (15.7) 11.4 12.3 (9.2) 7.7 7.3 6.9 36.4 7.5 (42.8) - (6.1) - 43.8 (38.8) (6.8) (21.2) (31.2) (7.7) (5.9) - (18.9) (5.9) (30.5) - (6.2) - 57.8 (43.0)

  15. UBM by GeographySix months to 30 June 2002 Asia 5.6% E&ME 0.8% Asia 17.3% UK 28.9% UK 39.3% US 64.7% US 43.4% REVENUE OPERATING PROFIT

  16. Investment Criteria • Net debt capacity around £400m • minimum interest cover of 5 times • conservative approach to financing • Acquisition financial criteria • cost of capital 8% • generally eps enhancing first full year

  17. Investment Criteria • Investment targets • exhibitions - break even in year 2 • organic - 2 to 4 year payback • benchmarked against returns on buying back shares • Acquisition and investment performance • mixed performance from acquisitions • integration and cost benefits on track • impacted by general US economic pressures • organic initiatives on target

  18. Off balance sheet financing/SPV Capitalisation of costs Reported sales revenue Restructuring costs “Underlying” growth rates Goodwill amortisation period FRS17 Derivatives Balance sheet None None No % completion accounting 2002 costs expensed Acquisitions stripped out Lives shortened to ten years £60m deficit Fully disclosed Net cash positive ACCOUNTING CHECKLIST

  19. OPERATIONAL REVIEW

  20. Delivery of Performance Targets • Cost savings • Margins • Market Share • Successful organic investments A Stronger Business for Today AND TOMORROW

  21. Constantly Improving Operational EfficiencyCost savings Vs 2000 fixed cost base £165m 1900 Staff Staffing down by over 30% in PRN, CMP Media and CMPi £110m 1400 Staff £60m 700 Staff August 2001 March 2002 August 2002 21

  22. Operational Objectives Margin Targets 15% 11% + 12.2% 9% to 10% 8.8% 4.9% 2001 H1 2001 H2 2002 H1 2002 H2 Medium Term 2003 22

  23. NOP World - Market ResearchSix months to 30 June 2002 £m 2001 £m Change % Underlying % Turnover US RoW 70.6 30.9 101.5 8.0 3.4 11.4 43.9 32.2 76.1 8.2 2.4 10.6 60.8 (4.0) 33.4 (2.4) 41.7 7.5 (4.7) (9.6) (6.8) (24.4) 56.5 (5.9) Operating profit US RoW Margin 11.2%

  24. NOP WorldSix months to 30 June 2002 • Revenue and profit boosted by acquisitions • Underlying revenue down 6.8% and profit down 5.9% • Downturn in health sector, especially US • Underlying margin 13.6% holding firm on last year • Roper pre-acquisition had margins of 5% • Strength in syndicated and in UK • Rapid growth in online research

  25. NOP WorldActions and outlook • Intensified client focus • Key new client wins • Healthcare issues peculiar to FDA pipeline & drugs off patent • Pipeline of product launches continues • Market growth outlook: UK and US both flat to down • NOP US: broadly in line with market • NOP UK: positive growth, better than market

  26. PR Newswire - News DistributionSix months to 30 June 2002 £m 2001 £m Change % Underlying % Turnover US RoW 51.1 6.4 57.5 13.4 (1.1) 12.3 64.3 8.0 72.3 22.3 (0.8) 21.5 (20.5) (20.0) (20.5) (39.9) (37.5) (42.8) (20.9) (23.4) (21.2) (31.2) (100.0) (30.5) Operating profit US RoW Margin 21.4%

  27. News DistributionSix months to 30 June 2002 • Volume down 13.2% and revenue per message down 5.6% • cautious customers trading down • continuing absence of M&A, IPO’s • in market turmoil corporates want low profile • 30% reduction in staff since end of 2000 • Robust performance from key evaluation products • grown from 13% to 15% of turnover • 60% Fortune 500

  28. News DistributionActions and outlook • Action on margins to mitigate effect of market conditions • Corporate publicity aversion is temporary • Investors and regulators will increase disclosure • Pipeline of product launches continues • building on strength of “evaluation” products • Market share gains in both US and UK, • UK Disclose taking market share faster than expected

  29. 2002 £m 2001 £m Change % Underlying % 136.5 219.6 (37.8) (31.2) Professional Media: CMP MediaSix months to 30 June Turnover Operating Profit - - (9.2) 14.0

  30. CMP Media Six months to 30 June 2002 • Loss of £9.2m this half Vs £22.2m in second half of 2001 • additional revenue pressure • further significant cost reductions realised in first half 2002 • Significant market share gains: 28.7% Vs 24.6% last year • Yields down 11.2% on H1 2000, in line with H2 2001 • Growth in revenue & margin driving medical division forward

  31. CMP MediaActions and outlook • Now planning on $ revenue down around 45% on 2000 continuing levels • Further cost savings in H2 should still leave profits in line with expectations • 37% reduction in staff since end 2000 • approaching breakeven in second half 2002 • Balance sheet strength ensuring improved competitive position • consolidating leveraged position for market recovery • Further process improvements in 2003 • Pipeline of product launches continues • Limited visibility, industry indicators suggesting gradual recovery 31

  32. Professional Media: CMP AsiaSix months to 30 June 2002 £m 2001 £m Change % Underlying % Turnover 25.5 24.1 5.8 (7.7) • Margins over 30%, above budget • KSS acquisition in Japan performing well • Over 13,000 sq mtrs for 3 new events successfully launched • Weak US events – cruises and leather down after Sept 11 • Record year in jewellery fairs – fashion jewellery up 23% Operating Profit 7.7 (6.1) (6.2) 8.2

  33. 2002 £m 2001 £m Change % Underlying % 62.3 67.8 (8.1) (5.9) Professional Media: CMP InformationSix months to 30 June 7.3 0.4 • Margins transformed, over 11.7% compared to breakeven last year • Radical cost cutting programme • 36% reduction in staff since end 2000 • nine titles/events either closed or merged • Five new launches: • including IFSEC Shanghai, Firex South and Intra Turnover Operating Profit - - 33

  34. 2002 £m 2001 £m Change % Underlying % UAP - Consumer MediaSix months to 30 June 29.5 29.5 - - 6.9 4.8 • Strong increase in margins from 16% to 23% • Significant cost savings • Strength in used car and homes & leisure markets • boosted Exchange & Mart • Recovery from impact of foot and mouth • boosted Dalton’s Weekly • Auto Exchange titles now moved into profit Turnover Operating Profit 43.8 57.8

  35. Channel 5Six months to 30 June 2002 £m 2001 £m Change % Turnover Operating profit 98.2 (17.8) 15.8 - 113.7 (2.2) Audience share up to 6.4% (5.6%) Advertising share up to 7.3% (6.2%)

  36. United Business MediaStrategic Priorities • Managing effectively in very challenging markets • Investing in products to build market share and drive growth • A time of opportunity for the prudent • On course to again improve margins in second half and 2003

  37. Breakdown of Net Cash and Interest First half 2002 30 June 2002 £m Average Balance £m Interest Rate % Interest £m 737 (687) 50 154 815 (766) 3.8 4.0 15.5 (15.5) 4.3 4.3 Cash Debt Net Cash Channel 5* Net Interest ** *C5 loan includes shareholder funding loans and working capital ** £180m convertible bond repaid Jan 02 38

  38. 2002 2001 2000 CMP Media – High-tech Monthly Market Share Analysis by Ad Page Volumes CMP Media IDG Reed Business ZD Penton Source: IMS/Auditor

  39. CMP Media US RevenuesRestated to exclude closures H1 2002 H1 2000 Change % Continuing revenues $m Ad page volumes – Month of June Ad page volumes – YTD June 189.3 2,015 11,615 329.7 3,585 18,992 (42.6) (43.8) (38.8)

  40. CMP Media US Revenues2000 restated to exclude closuresTwelve months to 31 December 2001 $m 2000 $m As reported Titles and events closed Continuing revenues 501 (43) 458 741 (88) 653

  41. Semiconductor Worldwide MarketThree Month Moving Average $Bn’s 42 Source: Semiconductor Industry Association

  42. Semiconductor Worldwide MarketThree Month Moving Average $Bn’s 2002 to end of May 43 Source: Semiconductor Industry Association

  43. Technology Confidence Barometer RoperNOP: July 2002 • Investment confidence has not changed significantly in the UK and the US between March and July 2002. • In the US and UK, growth rates of around 4% in IT spending are predicted for 2002 compared to 2001. • Confidence in Germany is lower than in the other markets, with an increase of only 0.2% expected for the full year 2002 compared to 2001. • There are moderate levels of optimism for 2003 however in all three markets, with predicted increases in expenditure of between 5% and 7% compared to 2002. • The top product areas for growth in 2002 are Security software, Web-based applications, High-speed data transmission (broadband) and Virtual Private Networks, while Consulting and Outsourcing are the areas where zero growth is forecast this year. 44

  44. Professional MediaSix months to 30 June 2002 £m 2001 £m Change % Underlying % Turnover CMPMedia CMP Asia CMP Information Total 136.5 25.5 62.3 224.3 219.6 24.1 67.8 311.5 (37.8) 5.8 (8.1) (28.0) (31.2) (7.7) (5.9) (23.7) Operating Profit CMP Media CMP Asia CMP Information Total - (6.1) - (74.3) - (6.2) - (84.3) (9.2) 7.7 7.3 5.8 14.0 8.2 0.4 22.6 45

  45. UBM by Revenue TypeSix months to 30 June 2002Continuing turnover 15.2% Other Ad’ 20.3% High Tech Advertising 64.5% Information Services High Tech Advertising is currently loss making