Informa : 2022 Half Year Results

Informa PLC Press Release

4 August 2022

2022 Half-Year Results

Growth, Expansion and Balance Sheet Strength

Informa (LSE: INF.L), the international Academic Markets, B2B Markets and Digital Services Group, today published its full statutory results for the six months to 30 June 2022 and announced the divestment of Maritime Intelligence for £385m ($458m). This follows the Market Update published on 19 July 2022, which included pre-released headline figures for the half-year and reaffirmed full year expectations.

Stephen A. Carter, Group Chief Executive, Informa PLC, said:

"As outlined in our recent Market Update, Informa's first half results underline the benefits of our GAP II strategy, with strong growth in revenues, profits and cash. We remain on track to achieve the upper-end of 2022 guidance, with good forward visibility in Subscriptions, Exhibitors, Delegates and Digital Services, whilst continuing to deliver accelerated shareholder returns, additional growth investment and further targeted expansion."

H1 2022 Financial Highlights (Continuing and Discontinued)

• Guidance reconfirmed:Full year expectations reaffirmed at the top-end of guidance, with growth in revenue, adjusted operating profit and earnings per share expected to be above historical trends;
• Strong Revenue Growth:Total H1 revenue growth of 59.1% and underlying growth1 of 43.9%, delivering
  Group revenues of £1,096.3m (2021: £688.9m), reflecting strength in Academic Markets, growth in B2B Digital Services and the continuing return of Live and On-Demand B2B Events;
• Strong Adjusted Profit Growth:Adjusted Operating Profit1 increased by 226.6% to £234.5m (2021: £71.8m), reflecting strong revenue growth and effective cost management;
• Improving Statutory Performance:Higher revenues, lower COVID exceptional costs and increased profit
  on divestment delivers statutory operating profit of £90.9m (H1 2021: £55.4m loss);
• Higher Free Cash Flow1: Strong adjusted operating profit growth and 100%+ operating cash conversion delivers free cash flow of £178.4m, up from £134.1m in H1 2021, including a doubling of capital reinvestment into digital services and enhanced technology capabilities;
• Balance Sheet Strength:Free Cash Flow growth combined with strong divestment returns, delivers positive net cash position, compared to net debt of £1.9bn a year ago, providing balance sheet strength and flexibility for shareholder returns, reinvestment and expansion;
• Dividends Resumed:The strength of the balance sheet, confidence in forward cash flow growth and the success of GAP II Portfolio Focus, lead to a resumption of ordinary dividends at 3p per share for H1 (with a target payout ratio of c.40% of full year adjusted earnings).

H1 2022 Divisional Highlights (Continuing and Discontinued)

• Improving growth at Academic Markets:Robust Subscription renewals and good growth in eBooks and Advanced Learning, combined with continuing growth in Pay to Publish services such as Open Research and F1000, delivers further improvement in underlying revenue growth to 3%; GAP II investment for future growth through further expansion in Open Research, reflected in lower year-on-year operating margin, as expected;
• Strong growth in Live and On-DemandB2B Events:220+ Live Events delivered in the first half, attracting 28k+ Exhibitors, 1.1m+ Attendees and more than £450m of revenue, representing 80%+ of equivalent revenue in 2019. Live Events outperformance in markets that are fully open, combined with B2B Digital Services growth, is balancing progressive reopening in Mainland China;

1In this report we refer to non-statutory measures including underlying results, as defined in the Financial Review on page 6 and Glossary on page 67.

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Informa PLC | Half-Year Results for Six Months to 30 June 2022

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• Double-digitgrowth in B2B Digital Services:Strong performances in specialist Content Marketing and Lead Generation, combined with positive annualised contract values at Omdia subscription research delivered more than 10% underlying revenue growth in B2B Digital Services;
• Robust growth in Informa Intelligence:Robust underlying revenue growth in Intelligence portfolio (+4.1% Continuing and Discontinued) ahead of divestment, underpinning attractive valuations and positive forward prospects under new ownership.

GAP II: Growth, Expansion and Balance Sheet Strength

GAP II is creating a more focused, higher growth business, with leading positions in Academic Markets and Live and On-Demand B2B Events, and a growing range of high value B2B Digital Services.

• Portfolio Focus completed:Divestment of Maritime Intelligence to Montagu at a valuation of £385m, receiving cash proceeds (subject to finalisation of working capital and capital structure), whilst retaining a 20% equity interest; this follows the sale of Pharma Intelligence (£1.9bn) and EPFR (£162m) and completes GAP II Portfolio Focus; c.£2.5bn (c.$3bn) of total value realised at a blended 2021 EV/EBITDA multiple of c.28x, significantly strengthening the balance sheet and providing funds for shareholder returns, reinvestment and expansion;
• Investment for Growth:GAP II investment programme progressing to plan, with initial projects focused on the continuing roll-out of IIRIS across our B2B portfolio, the strengthening of Open Research platforms and enhancing the quality and range of smart event services. Expected GAP II capital expenditure of £30-40m in 2022, and net operating investment of up to £30m;
• B2B Data and Analytics Engine, IIRIS:Continuing momentum in proprietary B2B customer data and analytics platform, IIRIS, with first party Known Engaged Marketable Audience (KEMA) increasing from 10m reported in March to 12m+ as platform adoption accelerates across portfolio of B2B brands;
• B2B Digital Services Expansion:Acquisition of Industry Dive (Specialist Content / Audience Development) alongside IIRIS (First Party Data) and NetLine (Content Syndication / Lead Generation), further expands Informa's B2B Digital Service offering. Combination with portfolio of B2B brands expands KEMA, enhances B2B Audience Development across 25+ targeted B2B markets and accelerates the roll out of targeted Lead Generation services;
• Market and Geographic Expansion:Recent announced extension of partnership in the growing Beauty & Personal Care market today further expanded into the US, joining forces with the Professional Beauty Association and BolognaFiere to bring a number of established and new Beauty brands into the country;
• Accelerating Shareholder Returns:Free cashflow strength combined with strong divestment returns has seen share buyback programme expanded from initial £100m to £725m. To date, 60m shares acquired at an average share price of 572p, delivering £346m capital returns to shareholders; In addition, ordinary dividends resumed at c.40% of full year adjusted earnings;
• FasterForward on ESG:Continuing delivery of Group-wide sustainability programme, FasterForward, including first certified CarbonNeutral® Event (IM Power), recertified CarbonNeutral® Publications (Taylor & Francis), and 90%+ of electricity at our events powered by renewable sources; strong progress continues to be recognised by external indices, including A- in CDP and leading peer group sector ranking within the Dow Jones Sustainability Index.

1In this report we refer to non-statutory measures including underlying results, as defined in the Financial Review on page 6 and Glossary on page 67.

Enquiries

Stephen A. Carter, Group Chief Executive	+44 (0)	20 8052 0400
Gareth Wright, Group Finance Director	+44 (0)	20 8052 0400
Richard Menzies-Gow, Director of IR & Communications	+44 (0)	20 8052 2787
Tim Burt / Simon Duke - Teneo	+44 (0)	7583 413254 / [phone]
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The New Informa Group

Following the successful completion of the GAP II Portfolio Focus Programme, Informa is focused on its two leadership businesses in Academic Markets and B2B Markets, providing specialist products and services into specialist end markets and geographies.

Academic Markets & Knowledge Services

Taylor & Francis Group: Specialist Knowledge and Open Research Services

Brands/Imprints: Taylor & Francis, Routledge, CRC Press, F1000, Dove Press, Cogent OA, Prufrock Press, Psychology Press, Garland Science, SPON Press

Subject Categories: Physical Sciences, Bioscience, Chemistry, Environment & Sustainability, Food Science & Technology, Information Science, Haematology, Neurology, Oncology, Psychology, Engineering, Education, Behavioural Science, Business & Management, Philosophy, Economics, Sociology

Geographies: US, UK, Mainland China, Germany, Japan, Australia

B2B Markets & Digital Services

Informa Markets: International Live & On-Demand B2B Events and B2B Market Access

Brands: CPhI Worldwide, Natural Products Expo West, World of Concrete, China Beauty, Magic, Marintec, Seatrade, Hotelex, MRO Americas,

Specialist Markets: Healthcare & Pharma, Health & Nutrition, Infrastructure & Construction, Beauty & Aesthetics, Fashion & Apparel, Maritime, Transport & Logistics, Manufacturing Machinery & Equipment, Hospitality Food & Beverage, Aviation

Geographies: US, Mainland China, UAE, ASEAN, Monaco, Brazil, Germany

Informa Connect: Live & On-Demand B2B Experiences

Brands: SuperReturn, IM Power, Finovate, Inside ETFs, Bio-Europe, BioPharm America, BioProcess International, TIDES, TMRE, FanExpo, Greenbuild

Specialist Markets: BioTech & Pharma, Fintech, Private Equity, Fund Management, Wealth Management, Sustainability, Maritime, Market Research & Marketing, Food Service & Hospitality

Geographies: US, Canada, Australia, UAE, Switzerland, UK, Singapore

Informa Tech: Market Insights and Market Access for International Tech Communities

Brands: NetLine, Industry Dive, Omdia, Black Hat, GDC, London Tech Week, AI Summit, Internet of Things World, Enterprise Connect, Light Reading, Heavy Reading

Specialist Markets: Artificial Intelligence, Cybersecurity, Enterprise IT, Gaming, Internet of Things, Media & Entertainment, Service Providers, Components & Devices

Geographies: US, Singapore, Japan, South Korea, Mainland China, UK, Germany

IIRIS: B2B Markets Data Engine

Data Services: IIRIS Tracker, IIRIS Passport, IIRIS Recommend, IIRIS Segment, IIRIS Insights

Informa Partnerships/Investments

Brand		Category	Equity Interest
Citeline		Pharma intelligence	15.0%
Lloyd's List Maritime		Maritime intelligence	20.0%
Curinos		Retail Banking intelligence	56.2%
Founder's Forum		Live & On-Demand B2B Events and B2B Communities	22.3%
Independent Television News	Creative Content Production	20.0%
PA Media Group		Specialist Media and News Services	18.2%
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Bridge Events Technologies	On-Demand Event Technology			14.9%
H1 2022 Financial Summary
			H1 2022		H1 20213	Reported	Underlying1
			£m		£m	%	%
Continuing operations:
Revenue			1,024.6		615.4	66.5	47.6
Statutory operating profit/(loss)			71.9		(71.4)
Adjusted operating profit2			213.3		51.4	315.0	152.6
Adjusted operating margin (%)2			20.8		8.4
Statutory profit/(loss) before tax			51.4		(104.4)
Adjusted profit before tax2			183.9		18.5
Statutory diluted earnings per share (p)		3.1		(6.8)
Adjusted diluted earnings per share (p)2		10.0		0.7
Discontinued operations:
Revenue			71.7		73.5	(2.4)	5.7
Statutory operating profit			19.0		16.0
Adjusted operating profit2			21.2		20.4	3.9	12.6
Adjusted operating margin (%)2			29.6		27.8
Statutory profit/(loss) before tax			1,385.5		16.0
Adjusted profit before tax2			21.2		20.4
Continuing and Discontinued operations:
Revenue			1,096.3		688.9	59.1	43.9
Statutory operating profit/(loss)			90.9		(55.4)
Adjusted operating profit2			234.5		71.8	226.6	126.2
Adjusted operating margin (%)2			21.4		10.4
Statutory profit/(loss) before tax			1,436.9		(88.4)
Adjusted profit before tax2			205.1		38.9
Statutory diluted earnings per share (p)		80.2		(5.9)
Adjusted diluted earnings per share (p)2		11.2		1.9
Cash flow from operating activities2		199.1		145.6
Free cash flow2			178.4		134.1
Net cash/(debt) (incl. IFRS 16)2			15.3		(1,890.1)
Interim dividend per share			3.0		n/a

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H1 2022 Divisional Highlights - Continuing Operations

	H1 2022	H1 20213	Reported	Underlying1
	£m	£m	%	%
Informa Markets
Revenue	421.4	187.6	124.6	110.6
Statutory operating profit/(loss)	(9.1)	(117.7)	n/a
Adjusted operating profit/(loss)2	76.0	(42.4)	n/a	374.5
Adjusted operating margin2 (%)	18.0	n/a
Informa Connect
Revenue	110.5	35.8	208.7	86.5
Statutory operating profit/(loss)	2.3	(22.8)	n/a
Adjusted operating profit/(loss)2	9.7	(14.9)	n/a	273.1
Adjusted operating margin2 (%)	8.8	n/a
Informa Tech
Revenue	136.0	58.1	134.1	53.8
Statutory operating profit/(loss)	13.4	(14.0)	n/a
Adjusted operating profit/(loss)2	22.8	(5.5)	n/a	78.9
Adjusted operating margin2 (%)	16.8	n/a
Taylor & Francis
Revenue	261.6	245.2	6.7	3.0
Statutory operating profit	58.3	60.0	(2.8)
Adjusted operating profit2	84.8	87.0	(2.5)	(8.6)
Adjusted operating margin2 (%)	32.4	35.5
Informa Intelligence - Continuing
Revenue	95.1	88.7	7.2	2.9
Statutory operating profit	7.0	23.1	(69.7)
Adjusted operating profit2	20.0	27.2	(26.5)	10.2
Adjusted operating margin2 (%)	21.0	30.7

H1 2022 Divisional Highlights - Discontinued Operations

	H1 2022	H1 20213	Reported	Underlying1
	£m	£m	%	%
Discontinued Operations
Revenue	71.7	73.5	(2.4)	5.7
Statutory operating profit	19.0	16.0	18.8
Adjusted operating profit2	21.2	20.4	3.9	12.6
Adjusted operating margin2 (%)	29.6	27.8

1In this document we refer to Statutory and Underlying results. Underlying figures are adjusted for acquisitions and disposals, the phasing of events including biennials, the impact of changes from new accounting standards and accounting policy changes, and the effects of currency. It includes, on a pro-forma basis, results from acquisitions from the first day of ownership in the comparative period and excludes results from sold businesses from the date of disposal in the comparative period. Statutory figures exclude such adjustments. Alternative performance measures are detailed in the Glossary.

2In this document we also refer to Statutory and Adjusted results, as well as other non-statutory financial measures. Adjusted results are prepared to provide an alternative measure to explain the Group's performance. Adjusted results exclude adjusting items as set out in Note 7 to the Financial Statements. Operating Cash Flow, Free Cash Flow, Net Debt and other non-statutory measures are discussed in the Financial Review and the Glossary.

3 Restated to reflect impact of accounting policy changes in relation to Software as a Service

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Informa PLC | Half-Year Results for Six Months to 30 June 2022

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