Results Presentation - DMGT/media/Files/D/DMGT/HY17 PresentationFIN… · dmg information dmg events dmg media ZPG Associate Euromoney Associate Note: The figures show FY 2016 restated

Results Presentation

Thursday 25 May 2017

Half year ended 31 March 2017

© 2017 DMGT

Agenda

2

1. Highlights

Paul Zwillenberg, CEO

2. Financial Performance

Tim Collier, CFO

3. Strategy and Business Update

Paul Zwillenberg, CEO

4. Q&A

Confidential, for internal use only

HighlightsPaul Zwillenberg, CEO

Confidential, for internal use only 3

1

© 2017 DMGT 4Confidential, for internal use only

Group underlying revenues +1%; underlying operating profit -11%

B2B: mixed performance

Consumer: encouraging dmg media performance

Euromoney reduction in stake

Continued real dividend growth

Half Year 2017 – Performance broadly in line with expectations


Ongoing operational execution improvements:

• Strengthened management team

• RMS(one) Risk Modeler launch

• MailOnline’s good progress on path to profitability

Increasing portfolio focus: Euromoney and Elite Daily

Enhanced financial flexibility: stronger balance sheet

Strategy on track – starting to deliver against clear priorities

Financial performanceTim Collier, CFO


2

© 2017 DMGT

£ million HY 2016 HY 2017 Change Underlying

Revenue 950 890 (6%) +1%

Operating profit 138 100 (27%) (11%)

Profit before tax 129 105 (18%)

Operating m argin 15% 11%

Earn ings per share 27.9 p 24.6 p (12%)

Dividend per share 6.7 p 6.9 p +3%

Financial Summary

7

Adjusted numbers

Revenue dynamics: underlying growth in B2B (+1%) and stable dmg media (+0%)

Operating profit down 11% underlying: RMS and dmg information

Operating margin of 11%: (adjusting for Euromoney, 13% HY16 → 11% HY17)

Euromoney transaction particularly impacted revenues and operating profit

EPS down 12%, Dividend up 3%

© 2017 DMGT

Reduced stake in Euromoney

8Confidential, for internal use only

Two stage process: share placing and Euromoney share buy-back in December 2016

Reduced stake from c.67% to c.49%

Total consideration of £317m, exceptional profit on disposal of £509m

- Profit includes revaluation of the remaining c.49% stake

De-coupling of balance sheets: increased financial flexibility for Euromoney

Subsidiary for three months to December 2016:

- Consolidate 100% of revenue and 100% of operating profit

- Minority interest equivalent to c.33% of post tax profits

- Consolidate 100% of operating cash flow

Associate for three months to March 2017:

- Include c.49% share of operating profit in JV’s and Associates

- Include c.49% of finance charge and tax

- Cash flow from dividends received

© 2017 DMGT

Euromoney impact


Adjusted numbers: HY16 Pro Forma, revised in respect of Euromoney

Euromoney c.67% subsidiary during Q1 and c.49% associate during Q2

Underlying performance unchanged since excludes Euromoney completely

Transaction contributed to lower net debt:EBITDA ratio of 1.6x as at 31 March 2017 (2.0x Mar’16)

Note: HY 2016 revenues, operating profit, share of profits from associates, finance charge, tax charge and minority interests have been restated to treat Euromoney as a c.67%

subsidiary for the three months to December 2015 but as a c.49% associate for the three months to March 2016. These changes impact earnings per share.


Revenue 846 890 +5% +1%

Operating profit 109 100 (8%) (11%)

Profit before tax 115 105 (8%)

Operating m argin 13% 11%

Earn ings per share 26.7 p 24.6 p (8%)

Dividend per share 6.7 p 6.9 p +3%

© 2017 DMGT

The shape of DMGT post Euromoney transaction


13%

33%

7%

47%

RMS

dmg information

dmg events

dmg media

ZPG

Associate

Euromoney

Associate

Note: The figures show FY 2016 restated on the basis of Euromoney being a c.49% owned associate for the Full Year.

Restated FY 2016

12%

25%

10%23%

9%

21%

RMS

dmg information

dmg eventsdmg media

Consumer

47%

Revenue: £1.5bn

B2B

53%

PBIT*: £249m

Consumer

32%

B2B

68%

Note: * PBIT is profit before tax, adjusted to exclude finance charges. Corporate costs

are allocated to RMS, dmg information, dmg events and dmg media on a revenue basis.


B2B

© 2017 DMGT

RMS

12

Performance in line with expectations

Continued underlying revenue growth: benefit from model enhancements offsetting client consolidation

RMS(one) costs: amortisation and no capitalisation in HY 2017

- RMS’s ‘EBITDA’* margin increased from 17% HY 2016 to 24% HY 2017

RMS(one) Risk Modeler: launched April 2017

RiskLink17: released April 2017 with 5 model updates & 3 new models; strong model pipeline

Outlook Full Year 2017 - Unchanged:

- Low-single digit underlying revenue growth

- Operating margin in low teens

Note: * ‘EBITDA’ has been adjusted to exclude benefit of capitalisation of RMS(one) development costs from HY 2016, as well as excluding depreciation and amortisation costs.


Total Revenue 96 117 +21% +1%

Operating Profit 19 16 (20%) (40%)

Operating Margin 20% 13%

© 2017 DMGT

dmg information

13

Mixed revenue performance – specific challenges for some businesses

European property: Landmark & Searchflow - challenging market volumes, UK mortgage approvals down –3%

US property: Trepp, EDR, Xceligent, SiteCompli & Buildfax - good growth from early-stage businesses

Education: Hobsons - good growth for Naviance, Intersect & Starfish; challenging trading for Admissions

Energy: Genscape - growth partly offset by challenging market conditions for solar business, Locus Energy


Property - European 89 89 +1% (4%)

Property - US 58 72 +24% +4%

Property 146 161 +10% (1%)

Education 48 54 +13% +3%

Energy 35 44 +26% +2%

dmg information 230 259 +13% +0%

© 2017 DMGT


Revenue 230 259 +13% +0%

Operating Profit 25 24 (6%) (17%)


dmg information

14

Continued investment

Stable underlying revenues: varied performance across portfolio

Investment in Xceligent: year-on-year margin improvement excluding Xceligent

Outlook Full Year 2017 – downward pressure

- Low-single digit underlying revenue growth

- Operating margin in mid-teens: now expected to be less than FY 2016 reflecting adverse impact from

lower revenue growth and Xceligent investment

© 2017 DMGT

dmg events

15

Underlying growth continues

Continued underlying revenue growth

Gastech: H2 FY 2017 but H1 FY 2016 – timing impact on H1 FY 2017 reported results and margin

Outlook Full Year 2017:

- Strong Gastech event in Tokyo in April 2017

- Challenging market conditions for Canadian energy sector

- Changes to phasing of launch programme

- Mid-single digit underlying revenue growth; absolute revenues in line with market expectations*

- Operating margin of c.25%


Revenue 72 69 (5%) +3%

Operating Profit 25 21 (15%) +2%


Note: * Current consensus for dmg events’ FY 2017 revenues is £119m with a range from £112m to £128m.

© 2017 DMGT

Euromoney

16

Only a subsidiary during Q1 FY 2017

HY 2017 only includes 3 months to December 2016

£ million HY 2016 HY 2017 Change

Revenue 194 95 (51%)

Operating Profit 47 19 (59%)


£ million Q1 FY 2016 Q1 FY 2017 Change

Revenue 90 95 +6%

Operating Profit 18 19 +6%


Note: The bottom table shows the Pro Forma HY 2016 figures.


Consumer

© 2017 DMGT

dmg media

18

Encouraging performance

Resilient underlying revenues: digital growth, consistent circulation revenues, declining print advertising

Underlying operating profit growth: MailOnline’s good progress on path to profitability and continued

management of newspaper cost base

Outlook Full Year 2017 - Unchanged:

- Stable underlying revenues (-2% to +2%)

- Absence of 53rd week, Wowcher and Elite Daily from H2 2017

- Stable operating margin (FY 2016 11%)


Revenue 358 350 (2%) +0%

Operating Profit 39 36 (9%) +5%


© 2017 DMGT

dmg media

19

Revenue

Note: Excluding Elite Daily, total advertising revenues were in line with last year on an underlying basis.


Circulation 153 155 +2% +2%

Advertising prin t 113 103 (9%) (8%)

Advertising digital 57 64 +12% +12%

Other 35 28 (21%) (13%)

Revenue 358 350 (2%) +0%

(1%)

© 2017 DMGT


Daily Mail / The Mail on Sunday 242 234 (3%) (3%)

circulation 153 155 +2% +2%

advertising 80 71 (12%) (12%)

other 10 8 (18%) (18%)

MailOn line 44 60 +35% +19%

Mail Businesses 286 293 +2% +0%

Metro 34 34 +1% +1%

Elite Daily 5 4 (22%) (35%)

Newsprin t & other 24 18 (25%)

Total Continuing 349 349 +0% +0%

Wowcher & 7 Days 9 1 (88%)

Total Revenue 358 350 (2%) +0%

dmg media

20

Revenue

© 2017 DMGT

dmg media

21

Profit dynamics

Strong underlying growth from Mail businesses, driven by MailOnline’s good progress on path to profitability

Expanded circulation at Metro, increased production and distribution costs


Mail Businesses 34 35 +4% +12%

Metro 8 5 (35%) (35%)

Elite Daily (4) (4) +3% +16%

Total Continuing 38 37 (4%) +5%

Wowcher & 7 Days 1 (1) (162%)

Total dmg media 39 36 (9%) +5%

© 2017 DMGT

Revenues

22


B2B

RMS 96 117 +21% +1%

dm g in form ation 230 259 +13% +0%

dm g even ts 72 69 (5%) +3%

Eurom oney 90 95 +6% N/A

488 540 +11% +1%

Consumer

dm g m edia 358 350 (2%) +0%

Total Revenue 846 890 +5% +1%

Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY 2016.

© 2017 DMGT

Diverse revenue streams


12%

8%

17%

33%

11%

19%

Print Advertising

Digital Advertising

Circulation

Subscriptions

Events,

Conferences

& Training

Transactions & Other

Percentages represent share of revenues in HY 2017. Arrows represent underlying revenue growth trajectories during the period.

Revenues by type

© 2017 DMGT

Operating profit

24


B2B

RMS 19 16 (20%) (40%)

dm g in form ation 25 24 (6%) (17%)

dm g even ts 25 21 (15%) +2%

Eurom oney 18 19 +6% N/A

88 80 (9%) (20%)

Consumer

dm g m edia 39 36 (9%) +5%

Group corporate costs (18) (15) (14%) +14%

Total operating profit 109 100 (8%) (11%)


© 2017 DMGT

Joint ventures & Associates

25

ZPG Plc: Continued strong performance; revenue +22%, adjusted basic EPS +3%

Euromoney: Q2 results, reflecting c.49% stake; $125m acquisition of RISI in April 2017

Full Year 2017 guidance: c.£65m, including benefit of 9 months’ of Euromoney being an associate

DMGT’s share of operating profits

£ million HY 2016 HY 2017

ZPG Plc 11 12

Eurom oney 14 16

Other - (1)

Total JV's & Associates 25 26


© 2017 DMGT

Adjusted results

26

£ million HY 2016 HY 2017 Change

Adjusted operating profit 109 100 (8%)

Join t ven tures and associates 25 26

Net finance costs (20) (21)

Adjusted profit before tax 115 105 (8%)

Taxation (16) (15)

Minorities (4) (3)

Adjusted earnings 95 87 (8%)

Adjusted EPS 26.7 p 24.6 p (8%)

Adjusted tax rate 14.2% 14.6%

Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY 2016. Please see slide 49 for the

adjustments.

© 2017 DMGT


Reorgan isation , redundancy and consultancy (6) (17)

Other cash item s (6) (3)

Sub-total of cash item s (12) (20)

Accelerated depreciation and im pairm en t of plan t - (35)

Exceptional operating costs 1 (12) (55)

Am ortisation , Im pairm en t & other (30) (14)

Profit on sale of assets 110 530

Pre-tax exceptional credit 68 461

Exceptional items and amortisation

27

Notes: 1 – Exceptional operating costs, impairment of internally generated and acquired computer software, property, plant and equipment and investment property: continuing and

discontinued operations.

Closure of Didcot printing plant: £35m non-cash impairment and £5m of restructuring and redundancy

Reorganisation at dmg information: £9m of reorganisation, redundancy and consultancy costs

Profit on sale of assets includes £509m gain on disposal of Euromoney

© 2017 DMGT

Net debt movement

28

679

551

13 13 18 54

96

14

37

299

400

450

500

550

600

650

700

750

800

850

900

Opening net debt Operating cashflow

Taxation Pensions Interest Dividends DeconsolidateEuromoney

M&A FX adjustment Closing net debt

£m

Net debt:EBITDA 1.6x (vs. 2.0x Mar’16)

Operating cash flow is stated after capex of £41m and exceptional operating items of c.£27m

Pre exceptional operating cash conversion 63% (vs. 41% HY 2016)

Usual seasonal cash flows: incentive plan, pension and dividend payments

© 2017 DMGT

Revenue MarginUnderlying revenue

growthMargin

B2B

RMS £205 m 18% Low-single digit % Low-teens %

dm g in form ation £498 m 15% Low-single digit % Mid-teens %

dm g even ts £105 m 28% Mid-single digit % ¹ Around 25%

Consumer

dm g m edia £706 m 11% Stable ² Stable

FY 2016 Outlook FY 2017

Revenue and profit outlook FY 2017

29

Corporate costs c.£35m

JV’s & Associates (pre tax) c.£65m

Net finance costs c.£40m

Notes:

1 – Underlying revenue guidance for dmg events reduced from high-single digit to mid-single digit but outlook for absolute revenues in line with market expectations (consensus

£119m, range £112m to £128m)

2 - Stable underlying revenues for dmg media means -2% to +2%. dmg media’s FY 2016 revenues were £677m excluding Wowcher, the benefit of the 53rd week and Elite Daily


H1 performance broadly in line with expectations:

• B2B - mixed

• Consumer – encouraging dynamics

H2 Considerations:

• Gastech event in April 2017

• US$ / £ FX rate (FY 2016 $1.42 average)

DMGT well positioned for the long-term:

• Stronger balance sheet

• Good long-term growth potential

Financial Summary

Strategy and Business UpdatePaul Zwillenberg, CEO


3

© 2017 DMGT

Strategy and Business Update

32

Progress on key strategic priorities

• Improving operational execution

• Increasing portfolio focus

• Enhancing financial flexibility

Summary

© 2017 DMGT

Content and proprietary data

Home for entrepreneurs

Diversified portfolio

Long-term perspective

High-potential markets

DMGT strengthsDriving our long-term success

33

© 2017 DMGT

Positioning DMGT for the future


Our markets continue to develop

1.0:

Publishing

• Raw data

• Advertising

• Print delivery

• Customer-derived insights

2.0: Digital

Publishing

• Data & visualisation

• Subscriptions

• Electronic delivery

• Basic analytic tools

• On-premise

3.0: Decision &

Workflow

Support

• Data synthesis

• Licensing

• Platforms

• Embedded in the workflow

• Benchmarking

• Delivered insights

• Customisable analytics

• Hybrid on-premise & cloud

4.0: Embedded

AI

• Machine learning on big data

• Exhaust data monetisation

• Ecosystems

• Embedded in the enterprise

• Artificial intelligence

• Systems make decisions

• Predictive analytics

• Cloud

Horizons of technology-enabled evolution

© 2017 DMGT

Key priorities

Increasing portfolio

focus

Improving operational

execution

Enhancing financial

flexibility

Delivering on our

potential

1 2 3

35

© 2017 DMGT

Priority 1: Improving operational execution

Performance

management

Faster, fitter and more

agile

‘Signature moves’

across the portfolio

Targets & KPI’s

Focused priorities

Incentive plans

Product

Pricing

Go-to-market

Reorganisation initiatives

Faster decision making

New Executive Committee

Value creation across the portfolio Delivering on our investments

36

© 2017 DMGT

Strengthened management team

Path to profitability

- RMS(one) Risk Modeler launch

- Strong model launch programme

Priority 1: Improving operational executionProgress report

H1 progress

37

© 2017 DMGT

MailOnline audience continues to grow

38

Expansion across multiple channels

Notes:

1 - Average viewers per day are unique viewers per platform during April 2017, as defined by

platform source. The estimated total daily unique viewers after adjusting for duplication

across platforms was c.45 million.

2 - Growth rates compare average viewers per day¹ in April 2017 to April 2016.

3 - Other includes Pinterest and Apple: 0.3m average viewers, 1.1 average minutes.

Source: MailOnline’s Omniture data, Snap Inc, Facebook

Average minutes per viewer per day

1 4 9

Facebook

24m daily viewers¹

+349%²

April 2017

49m total ¹Other³

Average viewers per day ¹

(millions)

Snapchat

10m daily viewers¹

+698%²

MailOnline branded

15m daily viewers¹

+8%²

MailOnline: continued growing engagement, direct to the site

Snapchat: MailOnline key channel within Snapchat

Facebook: video engagement

c.45 million de-duplicated average daily viewers¹

DailyMail.com TV: future platform – autumn 2017

© 2017 DMGT

Path to profitability

Strengthened management team

- RMS(one) Risk Modeler launch

- Strong model launch programme

Priority 1: Improving operational executionSecond half priorities

H1 progress H2 priorities

39

© 2017 DMGT

Priority 2: Increasing portfolio focusPositioning DMGT for Digital 4.0: criteria to evaluate present and future businesses

Investment criteria What we consider

Attractive and value

creating

Expected future revenue, profit and cash flow

to deliver value

End market size, growth rate and competitive

position

Value of proprietary data and services

Investment to achieve full potential

Ability and resources of current business to

execute

Scalability

Long-term competitive

advantage

Affordability

Achievability

Diversified portfolio, with more focused investment approach

40

© 2017 DMGT

Elite Daily disposal & 7 Days closure

Euromoney → Associate

Priority 2: Increasing portfolio focusProgress report


Hobsons focus on growth

Continuing portfolio review

Prioritise growth initiatives

Active portfolio management

41

© 2017 DMGT

Enhanced

financial

flexibility

Increased

portfolio focus

Increase

shareholder

returns

Improved

operational

execution and

cash flow

Invest in market

leading positions

Priority 3: Enhancing financial flexibilityTo pursue range of capital allocation opportunities

42

© 2017 DMGT

Priority 3: Enhancing financial flexibilityProgress report


Lower net debt and improved

net debt:EBITDA ratio

Improved RMS cash flow dynamics

Incorporating cash flow into remuneration

Continue to invest in selected growth initiatives

Improvement in business cash flows

Further improve net debt:EBITDA ratio by year end

43

© 2017 DMGT

Summary

44

H1 performance broadly in line with expectations

We are starting to deliver against clear strategic priorities:

• Improving operational execution

• Increasing portfolio focus

• Enhancing financial flexibility

Priority is to deliver on long-term potential of DMGT

Questions


4

Appendix


5

© 2017 DMGT

H1 2017 Adjusted PBT

47

HY 2016 to HY 2017 Bridge

129

115

105

3

2 0 (4)(2)

(14)

(4)

(4)

(2)

80.0

90.0

100.0

110.0

120.0

130.0

140.0

HY 2016 Euromoneyrevision

Revised HY 2016 B2B dmg media Corporate costs Euromoney trading Other JV's &Associates

Interest HY 2017

£m


Notes: The HY 2017 adjusted PBT benefited by c.£[14]m from FX rates (Average rate of $1.24 vs. $1.48 in HY 2016)

dmg events

dmg information

RMS

© 2017 DMGT

H1 2017 Earnings per share

48

HY 2016 to HY 2017 Bridge

27.9

26.7

24.6

0.1

(1.2)

(2.2)

19.0

20.0

21.0

22.0

23.0

24.0

25.0

26.0

27.0

28.0

29.0

HY 2016 Euromoney revision Revised HY 2016 PBT Trading Other items HY 2017

Pe

nce


© 2017 DMGT

HY 2016 Pro Forma Adjusted earnings


This slide reclassifies Euromoney from being a c.67% owned subsidiary during Q2 FY 2016, to being a c.49% owned

associate.

£ million Reported Revisions Pro Forma

Adjusted operating profit 138 (29) 109

Join t ven tures and associates 11 14 25

Net finance costs (20) - (20)

Adjusted profit before tax 129 (15) 115

Taxation (19) 3 (16)

Minorities (12) 8 (4)

Adjusted earnings 99 (4) 95

Adjusted EPS 27.9 p (1.2) p 26.7 p

Adjusted tax rate 14.8% 14.2%

© 2017 DMGT

B2B & Consumer diversity


* Profits include Corporate costs, allocated on a revenue basis.

£ million HY17 share HY 2016 HY 2017 Change Underlying

Revenues

B2B 61% 488 540 (9%) +1%

Consum er 39% 358 350 (2%) +0%

100% 846 890 (6%) +1%

Profits*

B2B 70% 77 71 (33%) (20%)

Consum er 30% 32 30 (9%) +10%

100% 109 100 (27%) (11%)

© 2017 DMGT

Geographical diversity


HY 2017 Revenues HY 2017 Profits

47%UK

33%North America

20%Rest of World

43%UK

31%North America

26%Rest of World

Revenues by destination and profits by source

Rest of World revenues, 20%: 10% Rest of Europe, 2% Australia, 8% Asia, Middle East, Caribbean, Africa and Latin America

© 2017 DMGT

Revenue dynamics


Weak print advertising

- Reported print advertising, subscriptions and events growth impacted by the deconsolidation of Euromoney

- Reported events growth impacted by the non-occurrence of the Gastech event

Share of revenues shown to nearest whole percentage.

£ million % of total HY 2016 HY 2017 Change Underlying

Advertising - prin t 12% 128 110 (14%) (8%)

- digital 8% 68 74 +10% +10%

Circulation 17% 153 155 +2% +2%

Subscriptions 33% 293 290 (1%) +4%

Even ts, con ferences and train ing 11% 135 94 (30%) +3%

Transactions & other 19% 174 166 (5%) (4%)

Total Revenue 100% 950 890 (6%) +1%

(1%)

© 2017 DMGT

Underlying analysis


Revenues

Underlying results are adjusted for constant exchange rates, the exclusion of disposals and closures and for the inclusion of the year-on-year organic growth

from acquisitions.

For events, the comparisons are between events held in the year and the same events held the previous time. For dmg media, underlying revenues exclude

low margin newsprint resale activities.

Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.

HY 2017

£ million % Underlying M&A Exchange Other Actual Underlying M&A Other Actual

B2B

RMS +1% 115 - 19 - 96 117 - - 117

dm g in form ation +0% 258 (1) 29 - 230 259 (0) - 259

dm g even ts +3% 66 - 10 (16) 72 69 - - 69

Eurom oney N/A - (194) - - 194 - (95) - 95

+1% 440 (195) 58 (16) 592 444 (95) - 540

Consumer

dm g m edia +0% 333 (7) 4 (23) 358 332 (1) (17) 350

Total +1% 772 (202) 62 (39) 950 776 (96) (17) 890

HY 2016

© 2017 DMGT

Underlying analysis


Adjusted operating profit

B2B and Consumer underlying figures are stated pre the allocation of Corporate costs. Including Corporate costs, the

underlying growth rates for B2B and Consumer were –20% and +10% respectively.

‘Other’ includes adjustments for the timing of shows at dmg events.

Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.

£ million % Underlying M&A Exchange Other Actual Underlying M&A Other Actual

B2B

RMS (40%) 26 - 7 - 19 16 - - 16

dm g in form ation (17%) 29 1 2 - 25 24 - - 24

dm g even ts +2% 21 - 4 (8) 25 21 - - 21

Eurom oney N/A - (47) - - 47 - (19) - 19

(20%) 75 (46) 13 (8) 116 60 (19) - 80

Consumer

dm g m edia +5% 35 (2) (2) - 39 36 1 - 36

Corporate costs +14% (18) - - - (18) (15) - - (15)

Operating profit (11%) 92 (48) 11 (8) 138 81 (19) - 100

HY 2017HY 2016

© 2017 DMGT

Geographical analysis


Revenues by destination

This table shows the revenues based on the location of the client receiving the goods or services

£ million RMS dmgi dmge Euromoney dmg media Total

Revenue

UK 27 77 2 9 301 416

North Am erica 67 155 3 44 24 292

Rest of World 23 27 64 42 25 181

117 259 69 95 350 890

© 2017 DMGT

Geographical analysis


Revenues by source

This table shows the revenues based on the location of the DMGT company that is providing the goods or services to the clients


Revenue

UK - 75 1 31 340 447

North Am erica 116 159 1 51 4 329

Rest of World 1 25 66 14 6 113

117 259 69 95 350 890

© 2017 DMGT

Category analysis


Revenues by type


Advertising - prin t - - - 7 103 110

- digital - 8 - 2 64 74

Circulation - - - - 155 155

Subscriptions 113 114 - 63 - 290

Even ts, con ferences

and train ing- - 69 25 - 94

Transactions & other 4 137 - (2) 27 166

117 259 69 95 350 890

© 2017 DMGT

Advertising revenues


Digital increase more than offset by print decline

£ million % of total HY 2016 HY 2017 Change Underlying

UK National newspapers 56% 113 103 (9%) (8%)

Eurom oney 4% 15 7 (53%) N/A

Total print 60% 128 110 (14%) (8%)

News websites (MailOn line & Metro) 32% 45 60 +32% +17%

Consum er websites 2% 12 4 (65%) (31%)

Eurom oney 1% 3 2 (44%) N/A

Other 5% 7 8 +18% +0%

Total digital 40% 68 74 +10% +10%

Total advertising 100% 196 185 (6%) (1%)

© 2017 DMGT

Net finance costs


Net interest payable adversely impacted by stronger US Dollar

Increased share of associates’ interest payable

Outlook Full Year 2017: net finance costs c.£40m


Net in terest payable pre JV's and Associates 18 19

Share of JV's and Associates finance costs 1 2

Net interest payable 20 21

Item s excluded from adjusted results:

IAS19(Revised) finance costs 2 3

© 2017 DMGT


Reorgan isation , redundancy and consultancy (6) (17)

Supplier volun tary adm in istration (5) -

Legal fees - (3)

Earn -out / deferred consideration charges (1) -

Sub-total of cash item s (12) (20)

Accelerated depreciation and im pairm en t of plan t - (35)

Exceptional operating costs 1 (12) (55)

Am ortisation of in tangible assets (23) (26)

Im pairm en t of in tangible assets & goodwill (13) (14)

Profit on sale of assets 110 530

Other non -operating item s 6 26

Pre-tax exceptional credit 68 461

Exceptional items and amortisation


Notes: 1 – Exceptional operating costs, impairment of internally generated and acquired computer software, property, plant and equipment and investment property: continuing and

discontinued operations.

© 2017 DMGT

Adjusting items


Reconciliation from statutory PBT to adjusted PBT

¹ The £530m profit on disposals in HY 2017 shown on slide 27 includes the profit on disposal of discontinued operations, which is excluded from statutory

PBT as well as from adjusted PBT (since statutory results exclude discontinued operations). The profit on disposal of discontinued operations is effectively

added in and then reversed back out in this reconciliation.


Statutory Profit Before Tax - con tinuing operations 195 41

Add: Statutory PBT - discon tinued operations - 14

Add: Profit on disposal of discon tinued operations ¹ - 509

Statutory PBT including discon tinued operations 195 564

Reverse: Pre-tax exceptional credit (slide 60) ¹ (68) (461)

Rem ove: IAS19(Revised) finance costs (slide 59) 2 3

Adjusted Profit Before Tax 129 105

© 2017 DMGT

£ million 31 Mar'16 31 Mar'17 Movement

Goodwill & In tangible assets 1,376 916 (460)

Other non -curren t assets 566 1,055 489

Curren t assets (excl. cash) 369 359 (10)

Net debt (719) (551) 168

Pension deficit (85) (43) 42

Other liabilities (880) (661) 219

Net assets 627 1,075 448

Equity attributable to owners of DMGT 466 1,060 595

Non-con trolling in terests 162 15 (147)

Shareholders' equity 627 1,075 448

Balance Sheet


© 2017 DMGT

Pension deficit


£ million Obligations Assets Deficit

As at 30 Septem ber 2016 (2,999) 2,753 (246)

Benefit paym en ts 50 (50) 0

In terest (cost) / incom e (32) 29 (3)

Com pany con tributions 0 13 13

Actuarial m ovem en t 87 105 192

Disposal 71 (70) 1

As at 31 March 2017 (2,823) 2,780 (43)

© 2017 DMGT

Net debt


Strong funding position

Bonds Coupon £m

Decem ber 2018 5.75% 215

April 2021 10.0% 11

June 2027 6.375% 200

426

Facilities 135

Cash, other debt & derivatives (10)

Net Debt 551

Bank facilities Facility Drawings Undrawn

Expiring March 2019 658 (135) 523

© 2017 DMGT

Pension deficit funding plan


• Funding plan agreed in Sep’16: c.£13m p.a. to FY 2019 and c.£16m p.a. from FY 2020 to FY 2027.

• Additional £15-30m payable in FY 2022, dependent upon DMGT’s cash generation performance in FY 2020-22, less any contributions related to

any future share buy-backs.

• Contributions cease once actuary agrees schemes are not in deficit.

• IAS19 deficit at 31 March 2017 = £43m (£246m at 30 September 2016)

• Future payments in excess of £13m p.a. of minimum recovery plan payments to FY 2019 are dependent on share buy-backs plus other minor

contributions.

• Agreed to contribute 20% of any future share buy-backs.

0

10

20

30

40

50

60

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Northcliffe disposal

Share buy-back /

Other

Minimum recovery

payments

£ m

illi

on

s

£13m

£Xm

£5m

£Xm

Total

Actual

Payments

Total

Recovery

Plan

Amounts

£29m £29m £29m

£19m

£8m

£13m

£50m £48m

£19m £34m

£5m

£13m £13m

H1 FY17

£13m


Gastech in FY 2018

A Annual

18M 18 Mon ths

Key

Event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Gastech B 18M 18M 18M 18M 18M

Big 5 Dubai A A A A A A A A

ADIPEC B A A A A A A A

FY 2014 FY 2015FY 2013 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

FY13 FY14 FY15 FY16

Revenues £m £m £m £m

Total for major events 39 42 36 61

Other even ts 48 58 59 44

87 100 95 105


Underlying advertising revenue trends

£ million % Q1 Q2 Half Year

Newspapers 62% 52 51 102

% v last year (11%) (4%) (8%)

Newspaper websites 36% 32 28 60

% v last year +16% +20% +18%

Subtotal 98% 84 78 162

% v last year (2%) +3% +0%

Digital businesses 2% 2 1 4

% v last year (37%) (42%) (39%)

Total 100% 86 80 166

% v last year (4%) +2% (1%)

Percentages show underlying variances.

‘Newspaper websites’ includes revenues from the Metro app for tablets and mobile devices, these are excluded from MailOnline’s revenues.

© 2017 DMGT

% of total Q1 v PY Q2 v PY HY17 v PY

Retail 23% (11%) (31%) (19%)

Travel 11% +11% +7% +8%

Entertainm en t 11% (22%) +14% (6%)

Finance 6% (27%) (25%) (26%)

Telecom s 6% (13%) +29% +5%

Motors 3% (44%) +0% (24%)

Mail Order 4% +0% +8% +4%

Others 36% +21% +17% +19%

Total 100% (2%) +1% +0%


Advertising revenue quarterly trends

UK newspaper titles, including companion websites. Excludes Daily Mail Australia and other digital businesses such as Elite Daily.

© 2017 DMGT

Reporting calendar


Reporting dates for FY 2017

Release Provisional Date

Q3 Trading update 27 July 2017

Pre-close trading update 29 Septem ber 2017

Prelim inary full year results 30 Novem ber 2017

© 2017 DMGT

0

2

4

6

8

10

12

14

16

18

20

22

Dividend Inflation

1996 2016

Dividend growth continues

70

20 year CAGR: 8%


FY 2017 Interim dividend of 6.9 pence, up +3%

22.0p

7.1p4.9p

© 2017 DMGT

Share price performance


The 20 year view – excluding dividend reinvestment

FTSE ‘All Share’

DMGT ‘A’ Shares

Ma

r-97

Ju

l-9

7

No

v-9

7

Ma

r-98

Ju

l-9

8

No

v-9

8

Ma

r-99

Ju

l-9

9

No

v-9

9

Ma

r-00

Ju

l-0

0

No

v-0

0

Ma

r-01

Ju

l-0

1

No

v-0

1

Ma

r-02

Ju

l-0

2

No

v-0

2

Ma

r-03

Ju

l-0

3

No

v-0

3

Ma

r-04

Ju

l-0

4

No

v-0

4

Ma

r-05

Ju

l-0

5

No

v-0

5

Ma

r-06

Ju

l-0

6

No

v-0

6

Ma

r-07

Ju

l-0

7

No

v-0

7

Ma

r-08

Ju

l-0

8

No

v-0

8

Ma

r-09

Ju

l-0

9

No

v-0

9

Ma

r-10

Ju

l-1

0

No

v-1

0

Ma

r-11

Ju

l-1

1

No

v-1

1

Ma

r-12

Ju

l-1

2

No

v-1

2

Ma

r-13

Ju

l-1

3

No

v-1

3

Ma

r-14

Ju

l-1

4

No

v-1

4

Ma

r-15

Ju

l-1

5

No

v-1

5

Ma

r-16

Ju

l-1

6

No

v-1

6

Ma

r-17

© 2017 DMGT

Important Notice


Certain statements in this presentation are forward looking

statements. By their nature, forward looking statements

involve a number of risks, uncertainties or assumptions that

could cause actual results or events to differ materially from

those expressed or implied by the forward looking

statements. These risks, uncertainties or assumptions could

adversely affect the outcome and financial effects of the

plans and events described herein. Forward looking

statements contained in this presentation regarding past

trends or activities should not be taken as representation

that such trends or activities will continue in the future. You

should not place undue reliance on forward looking

statements, which apply only as of the date of this

presentation.

This presentation does not constitute or form part of any

offer or invitation to sell, or any solicitation of any offer to

purchase any shares in the Company, nor shall it or any part

of it or the fact of its distribution form the basis of, or be

relied on in connection with, any contract or commitment or

investment decisions relating thereto, nor does it constitute a

recommendation regarding the shares of the Company. Past

performance cannot be relied upon as a guide to future

performance.

© 2017 DMGT

Notes


Operating profit is stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, pension finance charges, premiums on bond redemptions and amortisation of intangible assets arising on business combinations. These adjusted results include results from discontinued operations, specifically the Euromoney subsidiary.

Percentages are calculated on actual numbers to one decimal place.

Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers.

Underlying revenue or profit is revenue or profit on a like-for-like basis. Underlying results are adjusted for constant exchange rates, the exclusion of disposals and closures and for the inclusion of the year-on-year organic growth from acquisitions. For events, the comparisons are between events held in the year and the same events held the previous time. For dmg media, underlying revenues exclude low margin newsprint resale activities.

Thank you

Results Presentation - DMGT/media/Files/D/DMGT/HY17 PresentationFIN… · dmg information dmg events dmg media ZPG Associate Euromoney Associate Note: The figures show FY 2016 restated

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