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INVESTMENT CASE

Informa offers investors an attractive combination of growth and yield through a robust business model that provides strong visibility and highly attractive financial characteristics.

Through the 2014-2017 Growth Acceleration Plan, Informa's ambition is to accelerate growth and improve the returns generated by all four Operating Divisions, maintaining a commitment to a minimum level of dividend growth throughout.

Find out more about how each of our Divisions creates advantage.

  • Attractive Markets
  • Leading Brands
  • Robust Business Model
  • Growth Acceleration Plan
  • Strong Financials

The Knowledge & Information economy

  • 260m

    people visit exhibitions each year

  • 300m

    25-34 year olds will have tertiary level education by 2030

  • 7,000+

    New members join LinkedIn every hour

  • 25%

    Digital economy as a proportion of global GDP by 2020

  • $2trn

    Expected spend by the US on education in 2020

  • 7.2bn

    Air passenger traffic growing at 3.7% a year, to 7.2bn in 2035

  • 50bn

    Objects will be online by 2020

  • 1.5bn

    English language speakers worldwide

Attractive Markets in Growth

  • Academic Books & Journals

    • $27bn

      HSS & STM market size, according to Simba Information

    • 0-2%

      Market year-on-year growth

  • Business Information & Intelligence

    • $4bn

      Market size in Informa's verticals, according to Outsell, Inc.

    • 4-6%

      Market year-on-year growth

  • Trade Shows & Exhibitions

    • $29bn

      Market size, according to AMR International

    • 3-6%

      Market year-on-year growth

  • Conferences, Events & Training

    • >$100bn

      Market size, according to proprietary analysis

    • 0-3%

      Market year-on-year growth

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Academic Publishing

Taylor & Francis
Routledge
CRC Press
Cogent OA
Garland Science

Business Intelligence

Ovum
Fertecon
Trialtrove
EPFR Global
Lloyd's List

Global Exhibitions

Arab Health
China Beauty Expo
Natural Products EXPO West
World of Concrete
Monaco Yacht Show

Knowledge & Networking

Internet of Things World
Biotech Week Boston
Africa Comt
SuperReturn International
Broadband World Forum

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Generating Shareholder Value

Market Context

Informa operates in a growing, global market for professional, commercial and academic knowledge and information.

How we Operate

Behaviours and Principles

// Act commercially // Focus on quality // Encourage innovation // Operate responsibly //

Differentiators

// Unique Brands // International footprint // Mix of businesses //

Inputs

  • Talent

    Recruiting and retaining talented individuals, and developing their skills.

  • Brands

    Developing and protecting the value that Informa’s individual Brands hold in their specialist markets.

  • Relationships

    Building positive and productive relationships with customers and specialist communities.

  • Financial Capital

    Maintaining access to sources of capital for funding ongoing operations, investments and acquisitions.

Infrastructure

Having systems, processes and technology that help deliver and support our products and services globally.

Structure

Four operating divisions and one supporting division

Academic Publishing

Academic Publishing

Business Intelligence

Business Intelligence

Global Exhibitions

Global Exhibitions

Knowledge & Networking

Knowledge & Networking

Global Support

Global Support

Outputs

Books and Journals

Digital subscriptions and unit sales.

Data and intelligence products and services

Digital subscriptions and unit sales, consultancy and advertising.

Exhibitions, conferences and training events

Sale of exhibition space, delegate revenue, sponsorship and advertising.

Outcomes

  • Research and Information

    Production and dissemination of peer reviewed, high quality academic research and information.

  • Competitive Advantage

    Competitive advantage for professional customers through data, insight and intelligence.

  • Customer value

    Connections and relationships that create commercial value for customers.

  • Shareholder Value

    Generation of profits and revenues that provide Shareholder value and allow reinvestment in the business.

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Strategy

  • 2014-2017 Growth Acceleration Plan

    gap logo"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."

    Stephen A Carter, Group CEO

    • Operating Structure

      Establish a simplified operating structure, more closely aligned to our customers and end markets.

    • Management Model

      Install and maintain well-defined organisational structure and management model, with clear lines of authority and accountability.

    • Portfolio Management

      Adopt a more proactive approach to managing Informa’s portfolio, with allocation of capital more closely linked to return on investment.

    • Acquisition Strategy

      Develop a more targeted and disciplined approach to acquisitions, focusing investment in priority markets where potential returns are greatest.

    • Investment

      Invest £70m to £90m over the period of the Plan on a range of organic initiatives designed to build capability and accelerate growth across the Group.

    • Funding

      Improve financial discipline, maximising cash generation and creating a robust and flexible financing framework to fund investment, acquisitions and a minimum growth in annual dividends*.

    *Informa committed to a minimum annual dividend growth of 2% in 2014 and 2015, and increased this to 4% for 2016 and 2017

GO TO GROUP STRATEGY PAGE FOR MORE INFORMATION

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Global Reach & Predictable Revenue Streams

  • Group's Revenue by Region %

    • Revenue by Region

    •    UK - 11%


         North America - 46%


         Cont. Europe - 16%


         Rest of World - 27%

  • Group's Revenue by Type %

    • Revenue by Type

    •    Subscriptions - 38%


         Exhibitor - 21%


         Unit sales - 20%


         Attendee - 11%


         Sponsorship - 7%


         Advertising - 4%

Strong Cash Characteristics & Consistent Dividend Growth

  • Cash Conversion %

    Cash conversion

  • Free Cash Flow (£M)

    Free Cashflow


    * Restated for change in presentation of acquisition and integration costs

  • Dividend per share (p)

    Dividend per share


    * Restated for bonus impact of 2016 rights issue

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