final results presentation - dmgt/media/files/d/dmgt/fy17-presentationfina… · final results...

Final Results Presentation

Thursday 30 November 2017

Full Year ended 30 September 2017

© 2017 DMGT

Agenda

2

1. IntroductionPaul Zwillenberg, CEO

2. Financial PerformanceTim Collier, CFO

3. Strategy UpdatePaul Zwillenberg, CEO

4. Q&A

IntroductionPaul Zwillenberg, CEO

3

1

© 2017 DMGT

Completion of the strategic review – good progress

4

Increasing portfolio focus

Improving operational execution

Enhancing financial flexibility

1 2 3

© 2017 DMGT

Vision statement

Confidential, for internal use only 5

© 2017 DMGT 6

Group underlying revenues +1%; underlying operating profit –2%

Consumer: encouraging dmg media performance

B2B: mixed performance; some challenging market conditions and impairments

Continued real dividend growth

Full Year 2017 – Resilient underlying performance

© 2017 DMGT

0

2

4

6

8

10

12

14

16

18

20

22

24

Dividend Inflation1997 2017

Real dividend growth continues

7

20 year CAGR: 7%

FY 2017 Full Year dividend of 22.7 pence, up +3%

22.7p

8.5p5.8p

Financial performanceTim Collier, CFO

8

2

© 2017 DMGT

Statutory results

9

Revenue, operating profit and PBT exclude Euromoney (discontinued operations)

Operating profit adversely affected by impairments of £273m

Profit for the year and EPS include gain on disposals: Euromoney transaction

Pre adjustments

£ million FY 2016 FY 2017 Change

Revenue 1,514 1,564 +3%

Operating profit 91 (129) (242%)

Profit before tax 202 (112) (156%)

Profit for the year 214 342 +60%

Earnings per share 57.8 p 97.8 p +69%

© 2017 DMGT

Statutory profit to adjusted profit after tax

10

342

231

196

42

50

50 36

530

26

(250)

(150)

(50)

50

150

250

350

450

Statutory profit for

the year

Gains on disposal Goodwill and

intangible

impairment

Impairment of plant Acquired intangible

amortisation

Exceptional

operating costs

Other adjusting

items

Tax Adjusted profit after

tax

£ M

illi

on

s

© 2017 DMGT

Diverse revenue streams

11

31%

19%8%

9%

12%

21%

Circulation

Subscriptions

Events, Conferences & Training

Digital Advertising

Print Advertising

Transactions & Other

Percentages in the slices represent share of revenues in FY 2017. The +X% and (X)% percentages represent underlying growth rates during the year.

Revenues by type and underlying growth rates

+5%

+0%

+2%

+16%

(4)%

(5)%

© 2017 DMGT

Financial Summary

12

Adjusted numbers

Revenue dynamics: underlying growth in B2B (+2%) and dmg media (+1%)

Operating profit down 2% underlying: dmg media growth offset by B2B decline

Operating margin of 12%: down from 14%, reflecting Euromoney transaction

Euromoney transaction particularly impacted revenues and operating profit

EPS down 1%, Dividend up 3%

£ million FY 2016 FY 2017 Change Underlying

Revenue 1,917 1,660 (13%) +1%

Operating profit 277 198 (28%) (2%)

Profit before tax 260 226 (13%)

Profit after tax 198 196 (1%)

Earnings per share 56.0 p 55.6 p (1%)

Dividend per share 22.0 p 22.7 p +3%

© 2017 DMGT

Reduced stake in Euromoney

13

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 nine months to September 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

14

Adjusted numbers: FY16 Pro Forma, revised in respect of Euromoney

Euromoney c.67% subsidiary during Q1 and c.49% associate during Q2-Q4

Underlying performance unchanged since excludes Euromoney completely

Transaction contributed to lower net debt:EBITDA ratio of 1.4x as at 30 September 2017 (1.8x Sep’16)

Note: FY 2016 revenues, operating profit, share of profits from associates, finance charge, tax charge, minority interests and earnings per share 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 nine months to September 2016, consistent with the ownership profile during FY 2017.


Revenue 1,604 1,660 +3% +1%

Operating profit 195 198 +2% (2%)

Profit before tax 217 226 +4%

Operating margin 12% 12%

Earnings per share 52.1 p 55.6 p +7%

Dividend per share 22.0 p 22.7 p +3%

15

B2B

© 2017 DMGT

Insurance Risk: RMS

16

Performance in line with expectations

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

RMS(one):Risk Modeler launched Apr’17; continued client adoption, >12 clients using applicationsRisk modelling: unprecedented level of modelling solutions; updates and new catastrophe models; cyber v.2

RMS(one) costs: amortisation and no capitalisation in FY 2017- RMS’s ‘EBITDA’* margin increased from 17% FY 2016 to 24% FY 2017

Priorities in the year ahead: - Greater testing and client adoption of RMS(one) to drive FY 2019 revenue growth- Extensive model pipeline

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


Total Revenue 205 233 +14% +2%

Operating Profit 36 33 (9%) (25%)

Operating Margin 18% 14%

© 2017 DMGT

dmg information

17

Mixed revenue performance – specific challenges for some businesses

European Property: Landmark & SearchFlow - challenging market volumes, UK mortgage approvals down

US Property: Trepp, EDR, Xceligent, SiteCompli & BuildFax - continued revenue growth driven by early-stage businesses

EdTech: Hobsons - good growth from Naviance, Intersect & Starfish; disposal of Admissions (Sep’17) & Solutions (Oct’17)

Energy Information: Genscape - growth for Oil, Power & Gas; offset by challenging market conditions for solar business


Property - European 183 183 +0% (3%)

Property - US 123 145 +18% +5%

Property Information 307 328 +7% +0%

Education (EdTech) 115 114 +0% +9%

Energy Information 76 88 +16% +1%

dmg information 498 531 +7% +2%

© 2017 DMGT

dmg information

18

Energy Information: Genscape- Particularly challenging solar market- Sustained low energy prices and low price volatility impacting other parts of the business- Long-term prospects remain strong; weak short-term cash generation- £140m impairment charge; £141m remains on the balance sheet- New management team in place focusing on prioritising growth opportunities

US Property Information: Xceligent- Lower than expected revenue growth in new markets and longer road to profitability- £42m full impairment - New management team in place; reviewing strategic options

US Property Information: SiteCompli - Expansion into national retail market more challenging than expected- £24m full impairment- Management team focusing on growth opportunities

Impairments: non-cash items

© 2017 DMGT

dmg information

19

Continued underlying revenue growth: varied performance across portfolio

Margin reduction due to Xceligent investment and challenging market conditions for Genscape

Increased focus: Hobsons Admissions & Solutions; EDR disposal process

Priorities in the year ahead: - Mixed outlook for Property Information- Another year of transition and growth for EdTech business- Energy Information: challenging market conditions to continue; focus on operational improvements


Revenue 498 531 +7% +2%

Operating Profit 77 69 (10%) (13%)


© 2017 DMGT

dmg events

20

Continued underlying revenue growth

Continued underlying revenue growth despite challenging Canadian energy market; Gastech particularly strong (Tokyo Apr’17 vs. Singapore Oct’15)

Margin reduction: increased investment to support launches and future growth of existing events

Priorities in the year ahead: - Continued strength of three major events (Big 5 Dubai, ADIPEC and Gastech)- Smaller Gastech event in Barcelona in Sep’18 (vs. Tokyo Apr’17)- Continue to launch new events- Some market challenges in energy and Middle East


Revenue 105 117 +11% +3%

Operating Profit 29 31 +6% (7%)


© 2017 DMGT

Euromoney

21

Only a subsidiary during Q1 FY 2017

FY 2017 only includes 3 months to December 2016

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


Revenue 403 95 +76%

Operating Profit 100 19 (81%)


£ million Q1 FY 2016 Q1 FY 2017 Change

Revenue 90 95 +6%

Operating Profit 18 19 +6%


22

Consumer Media

© 2017 DMGT

dmg media

23

Encouraging performance

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

Underlying operating profit growth: MailOnline’s transition to profitability during the final quarter and continued management of newspaper cost base; stable absolute profits despite absence of 53rd week

Outlook Full Year 2018: - Continuation of existing revenue dynamics: digital advertising growth, print advertising decline and

circulation volume declines- Mid-single digit underlying revenue decline- Operating margin of around 10%; MailOnline profitable


Revenue 706 683 (3%) +1%

Operating Profit 77 77 +0% +10%


© 2017 DMGT

dmg media

24

Revenue


Circulation 315 308 (2%) +0%

Advertising print 215 195 (9%) (5%)

Advertising digital 111 123 +11% +18%

Other 65 57 (12%) (4%)

Revenue 706 683 (3%) +1%

+2%

© 2017 DMGT

dmg media

25

Revenue


Daily Mail / The Mail on Sunday 484 455 (6%) (4%)

circulation 315 308 (2%) +0%

advertising 150 131 (13%) (10%)

other 19 17 (12%) (11%)

MailOnline 93 119 +28% +20%

Mail Businesses 577 574 (0%) +0%

Metro 65 68 +4% +7%

Newsprint & other 43 36 (15%) +1%

Total Continuing 685 678 (1%) +1%

Wowcher, Elite Daily & 7 Days 21 5 (75%)

Total Revenue 706 683 (3%) +1%

© 2017 DMGT

dmg media

26

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 69 71 +3% +17%

Metro 15 11 (27%) (22%)

Total Continuing 84 82 (3%) +10%

Wowcher, Elite Daily & 7 Days (7) (5) (33%)

Total dmg media 77 77 +0% +10%

© 2017 DMGT

Revenues

27

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


B2B

RMS 205 233 +14% +2%

dmg information 498 531 +7% +2%

dmg events 105 117 +11% +3%

Euromoney 90 95 +6% N/A

899 976 +9% +2%

Consumer

dmg media 706 683 (3%) +1%

Total Revenue 1,604 1,660 +3% +1%

© 2017 DMGT

Operating profit

28

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


B2B

RMS 36 33 (9%) (25%)

dmg information 77 69 (10%) (13%)

dmg events 29 31 +6% (7%)

Euromoney 18 19 +6% N/A

160 152 (5%) (15%)

Consumer

dmg media 77 77 +0% +10%

Corporate costs (42) (31) +26% +26%

Total operating profit 195 198 +2% (2%)

© 2017 DMGT

Joint ventures & Associates

29

Euromoney: Q2-Q4 results, reflecting c.49% stake, adjusted PBT up 4%; strategy on track

ZPG: continued strong performance; revenue +24%, adjusted basic EPS +20%

Full Year 2018 guidance: ≥£75m share of operating profits

DMGT’s share of operating profits

Note: FY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate from January 2016, consistent with the ownership profile during FY 2017.

£ million FY 2016 FY 2017

Euromoney 42 47

ZPG 21 25

Other (3) (2)

Total JV's & Associates 61 69

© 2017 DMGT

Adjusted results

30

Note: FY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate from January 2016. Please see slide 52 for the adjustments.


Adjusted operating profit 195 198 +2%

Joint ventures and associates 61 69

Net finance costs (40) (42)

Adjusted profit before tax 217 226 +4%

Taxation (30) (29)

Minorities (2) (1)

Adjusted earnings 184 196 +7%

Adjusted EPS 52.1 p 55.6 p +7%

Adjusted tax rate 13.9% 12.8%

© 2017 DMGT

Exceptional items and amortisation

31Notes: Figures include JV’s and Associates and discontinued operations.

Reorganisation: £30m includes £14m in respect of dmg information and £9m dmg media

Closure of Didcot printing plant: £41m non-cash impairment and £4m of restructuring and redundancy

Impairment of Genscape, Xceligent & SiteCompli: £206m non-cash item (£231m incl. JV’s & Associates)

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


Reorganisation, redundancy and consultancy (37) (30)

Legal fees and other cash items (17) (14)

Exceptional operating costs (cash items) (55) (43)

Share of JVs & associates' exceptional operating costs (4) (7)

Total exceptional operating costs (58) (50)

Accelerated depreciation and impairment of plant - (42)

Impairment of intangible assets & goodwill (55) (231)

Amortisation of intangible assets (52) (50)

Profit on sale of assets 138 530

Other non-operating items 19 34

Pre-tax exceptional (charge)/credit (8) 190

© 2017 DMGT

Net debt movement

32

679

464

13 13 35

78

96

175271

4

400

450

500

550

600

650

700

750

800

Opening net debt Operating cash

flow

Taxation Pensions Interest Dividends Deconsolidate

Euromoney

M&A FX adjustment Closing net debt

£ M

illi

on

sNet debt:EBITDA 1.4x (vs. 1.8x Sep’16)

Operating cash flow is stated after capex of £79m and exceptional operating items of £46m

Operating cash conversion 88% (vs. 72% FY 2016)

Notes: Operating cash conversion % = operating cash flow / adjusted operating profit

© 2017 DMGT 33

Net debt

2.4x

2.9x2.7x

3.5x

3.0x 2.8x

2.3x 2.2x

2.0x 2.3x

1.7x

1.8x1.6x

2.0x

1.5x

1.9x 1.8x 2.0x 1.8x

1.6x1.4x

0

200

400

600

800

1,000

1,200

Sep'07 Mar'08 Sep'08 Mar'09 Sep'09 Mar'10 Sep'10 Mar'11 Sep'11 Mar'12 Sep'12 Mar'13 Sep'13 Mar'14 Sep'14 Mar'15 Sep'15 Mar'16 Sep'16 Mar'17 Sep'17

£ M

illi

on

s

Net debt:EBITDA 1.4x (vs. 1.8x Sep’16)

© 2017 DMGT 34

Significantly stronger balance sheet

Net pension surplus on an accounting basis IAS19 (Revised)

Funding payments based on actuarial valuation; £13m funding payments in FY 2018

Enhanced financial flexibility

Pension surplus as well as reduced net debt

£ million 30 Sep'16 30 Sep'17 Movement

Net debt 679 464 (214)

Pension deficit / (surplus) 246 (62) (308)

Total 925 402 (523)

© 2017 DMGT

New segmental reporting

35

£233m

£274m

£69m

£89m£117m

£683mProperty Information

Insurance Risk

EdTech

Energy Information

Events & Exhibitions

Consumer Media

The chart shows FY 2017 revenues restated to exclude Euromoney, Hobsons Admissions and Solutions and EDR.

£1,465m

© 2017 DMGT

Revenue and profit outlook FY 2018

36

Corporate costs c.£45m

JV’s & Associates (pre-tax) ≥£75m

Net finance costs c.£40m

Effective tax rate: c.18%

Notes: 1 – Excluding Euromoney, Hobsons’ Admissions and Solutions businesses and EDR, the FY 2017 B2B revenues were £781m (at the FY 2017 FX rate of $1.27) and the operating margin was 13%. The total B2B revenues in FY 2017, including these businesses, was £976m and the margin was 16%.In FY 2017, EDR’s revenues were £54m and adjusted operating profit was £19m.

Revenue MarginUnderlying revenue

growthMargin

B2B £781 m1 13%1 Low-single digit %¹ Mid-teens %

Consumer (dmg media) £683 m 11% Mid-single digit % decline Around 10%

FY 2017 Full Year Outlook FY 2018

Strategy UpdatePaul Zwillenberg, CEO

37

3

© 2017 DMGT

2018 and beyond: Clear strategy with focused Performance Improvement Programme

38

Completion of strategic review

A clear strategy and vision for

the future

Performance Improvement

Programme

© 2017 DMGT

Good progress against strategic priorities

39

Increasing portfolio focus

Improving operational execution

Enhancing financial flexibility

1 2 3

© 2017 DMGT

Explicit portfolio roles and investment criteria


Early betsBusinesses for the future

Investment to grow

Focused growthGrowing and delivering

Targeted investment

Cash generative

Cash consumptive

Operating at scalePredictable performers

Strong cash contribution

Attractive and value creating

Scalability

Long-term competitive advantage

Affordability

Achievability

Portfolio roles Investment criteria

© 2017 DMGT


41



the future


Programme

© 2017 DMGT

A clear strategy and bold vision for the future

42

B2BProprietary data

Advanced analytics

Integrated with processes

Scaleable and reliable

B2CAddictive content

Personalised and responsive

Accessible everywhere

Intuitive experience

Intelligent simplicityDeep understanding, intuitive solutions

Continuous evolution Advanced analytics, constant refinement

Speed and agilityTimely insights, fast-to-market products

High value content, great user experience

Capture attention, and keep it

Community enabledPhysical connections,

enriched digitally

A B

© 2017 DMGT

Vision statement


Intelligent Insights. Consumer ConnectionsDMGT engages customers by combining proprietary data, innovative technology, compelling content and

consumer know-how. We provide people with powerful analysis, insight and entertainment, at work, at home

and everywhere in between.

© 2017 DMGT


44



the future


Programme

© 2017 DMGT

Performance Improvement Programme

45

Enablinginvestment in

opportunities we create, develop and

acquire

DMGT and businesses focused

on Intelligent Insights. Consumer

Connections

DMGT ‘system’ in place – capabilities

in product, technology, people,

commercial

© 2017 DMGT

Vision statement


Intelligent Insights. Consumer Connections

© 2017 DMGT

Delivering Quality

FocusingPriorities

Realising Opportunities


Programme

Looking ahead

47

Strong balance sheet

Intelligent Insights. Consumer

Connections

Sustained EPS growth

Real dividend growth

Questions

48

4

Save the date:

1 February 2018

DMGT Investor Briefing

Appendix

49

5

© 2017 DMGT

FY 2017 Adjusted PBT

50

FY 2016 to FY 2017 Bridge

260

217 226

2 0 11

6 3

(42)

(3)

(8)

(1)

180.0

190.0

200.0

210.0

220.0

230.0

240.0

250.0

260.0

270.0

FY 2016 Euromoney

revision

Revised FY

2016

RMS dmg

information

dmg events dmg media Corporate costs Euromoney

trading

Other JV's &

Associates

Interest FY 2017

£m

Notes: The FY 2017 adjusted PBT benefited by c.£19m from FX rates (Average rate of $1.27 vs. $1.42 in FY 2016)

© 2017 DMGT

FY 2017 Earnings per share

51

FY 2016 to FY 2017 Bridge

56.0

52.1

55.6

2.3

0.7

0.5

(3.9)

50.0

51.0

52.0

53.0

54.0

55.0

56.0

57.0

FY 2016 Euromoney revision Revised FY 2016 PBT Trading Tax rate impact Other items FY 2017

Pe

nce

© 2017 DMGT

FY 2016 Pro Forma Adjusted earnings

52

This slide reclassifies Euromoney from being a c.67% owned subsidiary during Q2-4 FY 2016, to being a c.49% owned associate.

£ million Reported Revisions Pro Forma

Adjusted operating profit 277 (82) 195

Joint ventures and associates 23 38 61

Net finance costs (40) 1 (40)

Adjusted profit before tax 260 (43) 217

Taxation (37) 7 (30)

Minorities (24) 22 (2)

Adjusted earnings 198 (14) 184

Adjusted EPS 56.0 p (3.9) p 52.1 p

Adjusted tax rate 14.4% 13.9%

© 2017 DMGT

£ million Share of total FY 2016 FY 2017 Change Underlying

Revenues

B2B 59% 899 976 +9% +2%

Consumer 41% 706 683 (3%) +1%

100% 1,604 1,660 +3% +1%

Profits

B2B 77% 160 152 (5%) (15%)

Consumer 39% 77 77 +0% +10%

Corporate costs (15%) (42) (31) (26%) +26%

100% 195 198 +2% (2%)

B2B & Consumer diversity

53

FY 2016 figures have been restated to only include Euromoney for the first 3 months, consistent with the ownership profile during FY 2017.

© 2017 DMGT

Geographical diversity

54

FY 2017 Revenues FY 2017 Profits

49%UK

33%North America

18%Rest of World

46%UK

38%North America

16%Rest of World

Revenues by destination and profits by source Rest of World revenues, 18%: 9% Rest of Europe, 1% Australia, 8% Asia, Middle East, Caribbean, Africa and Latin America

© 2017 DMGT

Revenue dynamics

55

Strong subscription performance

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

Share of revenues shown to nearest whole percentage.

£ million % of total FY 2016 FY 2017 Change Underlying

Advertising - print 12% 248 203 (18%) (5%)

- digital 9% 132 143 +8% +16%

Circulation 19% 315 308 (2%) +0%

Subscriptions 31% 623 517 (17%) +5%

Events, conferences and training 9% 234 141 (40%) +2%

Transactions & other 21% 366 348 (5%) (4%)

Total Revenue 100% 1,917 1,660 (13%) +1%

+3%

© 2017 DMGT

Underlying analysis

56

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 the benefit to FY 2016 results of an additional 53rd week and low margin newsprint resale activities.

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 +2% 230 - 25 - 205 233 - - 233

dmg information +2% 490 (49) 41 - 498 498 (33) - 531

dmg events +3% 114 (1) 11 (1) 105 117 - - 117

Euromoney N/A - (403) - - 403 - (95) - 95

+2% 833 (453) 76 (1) 1,212 848 (128) - 976

Consumer

dmg media +1% 640 (18) 4 (52) 706 645 (5) (34) 683

Total +1% 1,473 (471) 79 (53) 1,917 1,493 (133) (34) 1,660

FY 2016 FY 2017

© 2017 DMGT

Underlying analysis

57

Adjusted operating profit

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

‘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 (25%) 44 - 8 - 36 33 - - 33

dmg information (13%) 66 (16) 5 - 77 57 (12) - 69

dmg events (7%) 33 0 3 0 29 30 - (0) 31

Euromoney N/A - (100) - - 100 - (19) - 19

(15%) 142 (116) 16 0 242 120 (31) - 152

Consumer

dmg media +10% 75 6 (2) (6) 77 82 5 - 77

Corporate costs +26% (42) - - - (42) 31- - - (31)

Operating profit (2%) 175 (109) 14 (6) 277 172 (27) - 198

FY 2017FY 2016

© 2017 DMGT

Geographical analysis

58

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 56 161 3 9 579 808

North America 133 314 13 44 53 556

Rest of World 45 56 101 42 52 296

233 531 117 95 683 1,660

© 2017 DMGT

Geographical analysis

59

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 - 155 19 31 669 874

North America 231 323 6 51 4 615

Rest of World 2 52 92 14 10 170

233 531 117 95 683 1,660

© 2017 DMGT

Category analysis

60

Revenues by type


Advertising - print - - 1 7 195 203

- digital - 17 - 2 123 143

Circulation - - - - 308 308

Subscriptions 224 230 - 63 - 517

Events, conferences

and training- - 116 25 - 141

Transactions & other 10 283 - (2) 57 348

233 531 117 95 683 1,660

© 2017 DMGT

Advertising revenues

61

Digital growth outstrips print decline

£ million % of total FY 2016 FY 2017 Change Underlying

UK National newspapers 56% 215 195 (9%) (5%)

Euromoney 2% 33 7 (79%) N/A

Total print 59% 248 203 (18%) (5%)

News websites (MailOnline & Metro) 35% 95 120 +26% +18%

Consumer websites 1% 16 4 (75%) N/A

Euromoney 1% 7 2 (69%) N/A

Other 5% 14 17 +25% +9%

Total digital 41% 132 143 +8% +16%

Total advertising 100% 380 346 (9%) +3%

© 2017 DMGT

Net finance costs

62

Net interest payable adversely impacted by stronger US Dollar

Increased share of associates’ interest payable

Outlook Full Year 2018: net finance costs c.£40m

FY 2016 figures have been restated to include the impact for 9 months of the benefit from proceeds from reducing the stake in Euromoney and the adverse impact of de-consolidated cash on Euromoney’s balance sheet, consistent with the ownership profile during FY 2017.


Net interest payable pre JV's and Associates 36 37

Share of JV's and Associates finance costs 3 5

Net interest payable 40 42

Items excluded from adjusted results:

IAS19(Revised) finance costs 5 5

© 2017 DMGT

Exceptional items and amortisation

63

Notes: 1 – Cash items. The timing of the cash flow impact may fall in other financial years. 2 – Exceptional operating costs including continuing and discontinued operations.


Reorganisation, redundancy and consultancy 1 (37) (30)

Legal fees 1 - (14)

Supplier voluntary administration 1 (5) -

Euromoney overseas sales tax & legal dispute 1 (9) -

Earn-out / deferred consideration charges 1 (3) -

Exceptional operating costs 2 (55) (43)

Share of JVs & associates exceptional operating costs (4) (7)

Total exceptional operating costs 2 (58) (50)

Accelerated depreciation and impairment of plant (0) (42)

Impairment of intangible assets & goodwill (55) (231)

Amortisation of intangible assets (52) (50)

Profit on sale of assets 138 530

Other non-operating items 19 34

Pre-tax exceptional (charge)/credit (8) 190

© 2017 DMGT

Adjusting items

64

Reconciliation from statutory PBT to adjusted PBT

¹ The £530m profit on disposals in FY 2017 shown on slide 31 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/(Loss) Before Tax - continuing operations 247 (112)

Add: Statutory PBT - discontinued operations - 14

Add: Profit on disposal of discontinued operations ¹ - 509

Statutory PBT including discontinued operations 247 411

Reverse: Pre-tax exceptional charge/(credit) (slide 31) ¹ 8 (190)

Remove: IAS19(Revised) finance costs (slide 62) 5 5

Adjusted Profit Before Tax 260 226

© 2017 DMGT

Balance Sheet

65

£ million 30 Sep'16 30 Sep'17 Movement

Goodwill & Intangible assets 1,481 576 (905)

Other non-current assets 587 986 398

Current assets (excl. cash) 415 398 (17)

Net debt (679) (464) 214

Pension (deficit) / surplus (246) 62 308

Other liabilities (1,029) (639) 390

Net assets 529 919 390

Equity attributable to owners of DMGT 351 908 557

Non-controlling interests 178 11 (167)

Shareholders' equity 529 919 390

© 2017 DMGT

Goodwill & Intangible assets: By business

66

£ million

RMS 7 0 71 79

Landmark & SearchFlow 129 42 12 182

Genscape 101 25 16 141

Hobsons 70 8 15 92

dmg events 18 3 0 21

Other 40 7 16 62

As at 30 September 2017 363 84 129 576

Intangible Assets

Goodwill ¹ Acquired ²Internally

Generated ³Total

¹ Goodwill represents the excess of the cost of an acquisition over the Group’s interest in the fair value of the identifiable assets and liabilities of the target entity recognised at the date of acquisition. Goodwill is not amortised, but is subsequently measured at cost less accumulated impairment losses. ² Intangible assets recognised on acquisition include publishing rights, brands, market and customer databases, customer relationships and computer software licenses.³ Internally generated intangible assets arise from the Group’s development activity, including software for internal use.

© 2017 DMGT

Goodwill & Intangible assets: Movements

67

¹ Amortisation of intangible assets is charged over the estimated useful life of the asset. For internally generated assets the useful life is typically 3-5 years. For acquired assets the useful life varies: publishing rights 5-30 years, brands 3-20 years, market & customer databases 3-20 years, customer relationships 3-20 years, computer software licenses 2-5 years. The £50m amortisation charge in respect of acquired intangible assets shown on slide 31 includes DMGT’s £18m share from JV’s and Associates, whereas the figures shown in the table above exclude the share from JV’s and Associates.² The £213m impairment of goodwill and intangible assets relates to dmg information, notably Genscape, Xceligent and SiteCompli.

£ million

As at 30 September 2016 982 303 196 1,481

Additions 0 1 58 59

Reclassified as held-for-sale (71) (5) (3) (80)

Disposals (441) (149) (18) (607)

Amortisation ¹ 0 (32) (44) (76)

Impairment ² (117) (39) (58) (213)

Foreign exchange 10 5 (2) 13

As at 30 September 2017 363 84 129 576

Intangible Assets

Goodwill AcquiredInternally

GeneratedTotal

© 2017 DMGT

Pension surplus

68

Net pension surplus on an accounting basis IAS19 (Revised)

Funding payments will continue until no deficit on an actuarial basis

£ million Obligations Assets(Deficit) /

Surplus

As at 30 September 2016 (2,999) 2,753 (246)

Attributable to subsidiaries disposed 72 (71) 1

Benefit payments 107 (107) 0

Interest (cost) / income (63) 58 (5)

Company contributions 0 13 13

Actuarial movement 192 107 299

As at 30 September 2017 (2,691) 2,753 62

© 2017 DMGT

Net debt

69

Strong funding position

Bonds Coupon £m

December 2018 5.75% 216

April 2021 10.0% 10

June 2027 6.375% 197

424

Facilities 46

Cash, other debt & derivatives (6)

Net Debt 464

Bank facilities Facility Drawings Undrawn

Expiring March 2019 611 (46) 565

© 2017 DMGT

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

£13m

£13m

Pension deficit funding plan

70

• 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 surplus at 30 September 2017 of £62m (£246m deficit 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).

© 2017 DMGT 71

Gastech in September 2018 (vs. April 2017)

A Annual

18M 18 Months

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 FY17

Revenues £m £m £m £m £mTotal for major events

39 42 36 61 70

Other events 48 58 59 44 47

87 100 95 105 117

© 2017 DMGT 72

Underlying advertising revenue trends

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

£ million % Q1 Q2 Q3 Q4 Full Year

Newspapers 62% 52 51 47 46 195

% v last year (11%) (4%) (5%) 1% (5%)

Newspaper websites 38% 32 28 29 30 119

% v last year +15% +19% +27% +13% +18%

Total 100% 84 78 76 76 314

% v last year (3%) +3% +5% 5% +2%

© 2017 DMGT 73

Advertising revenue quarterly trends

UK newspaper titles, including companion websites. Excludes Daily Mail Australia.

% of total Q1 v PY Q2 v PY Q3 v PY Q4 v PY FY17 v PY

Retail 20% (11%) (31%) (10%) (19%) (17%)

Travel 11% +11% +7% +8% (4%) +5%

Entertainment 10% (22%) +14% (6%) (3%) (5%)

Finance 5% (27%) (25%) (10%) (22%) (22%)

Telecoms 6% (13%) +29% +0% (14%) (2%)

Motors 2% (44%) +0% (20%) (24%) (23%)

Mail Order 3% +0% +8% (7%) (20%) (5%)

Others 43% +21% +17% +19% +13% +18%

Total 100% (2%) +1% +4% (3%) +0%

© 2017 DMGT

Reporting calendar

74

Reporting dates for FY 2018

Release Provisional Date

Q1 Trading update 25 January 2018

Investor Briefing 1 February 2018

Half year results 24 May 2018

Q3 Trading update 26 July 2018

Preliminary full year results 29 November 2018

© 2017 DMGT

Share price performance

75

The 25 year view – excluding dividend reinvestmentS

ep

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DMGT 'A' Shares

FTSE 'All Share'

© 2017 DMGT

Important Notice

76

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

77

Operating profit is stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance charges and fair value adjustments. 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 growth rates exclude the benefit to FY 2016 results of an additional 53rd

week and underlying revenues exclude low margin newsprint resale activities.

Thank you

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