results presentation - dmgt/media/files/d/dmgt/half year 2020/hy20... · this presentation does not...

© 2020 DMGT

Results PresentationHalf year ended 31 March 2020

Thursday, 28 May 2020

Paul Zwillenberg, CEO

Tim Collier, CFO

© 2020 DMGT

Disclaimer

2

Certain statements in this presentation are forward lookingstatements. By their nature, forward looking statements involve anumber of risks, uncertainties or assumptions that could causeactual results or events to differ materially from those expressedor implied by the forward looking statements. These risks,uncertainties or assumptions could adversely affect the outcomeand financial effects of the plans and events described herein.Forward looking statements contained in this presentationregarding past trends or activities should not be taken asrepresentation that such trends or activities will continue in thefuture. You should not place undue reliance on forward lookingstatements, which apply only as of the date of this presentation.

This presentation does not constitute or form part of any offer orinvitation to sell, or any solicitation of any offer to purchase anyshares in the Company, nor shall it or any part of it or the fact ofits distribution form the basis of, or be relied on in connectionwith, any contract or commitment or investment decisionsrelating thereto, nor does it constitute a recommendationregarding the shares of the Company. Past performance cannotbe relied upon as a guide to future performance.

© 2020 DMGT

Agenda

Update on Covid-19

> Paul Zwillenberg, CEO

Half Year financial performance

> Tim Collier, CFO

Business update

> Paul Zwillenberg, CEO

© 2020 DMGT

Update on Covid-19Paul Zwillenberg, CEO

© 2020 DMGT 5

The current situation

DMGT portfolio effect

Seamless transition through exceptional circumstances

> Resilient, growing B2B subscription businesses:

• Insurance Risk, US Property Information and EdTech

> Businesses with revenues directly impacted by Covid-19:

• Consumer Media: lower circulation, print advertising and digital yields

• UK Property Information: marked reduction in transaction volumes

• Events & Exhibitions: all March to August events and Gastech cancelled or postponed

> Immensely proud of employees and their adaptability

> All DMGT businesses quickly and successfully moved to remote working

> Uninterrupted product delivery: benefit of previous actions

> Thankful to our supportive and loyal customer base

© 2020 DMGT 6

DMGT’s response: stakeholder engagement

Supporting our communities in a time of crisis

> Mail Force:

• Charity providing the NHS with PPE from new UK and international sources

• £8m raised to date, including >£1m donation from DMGT

• 2.8 million PPE items supplied to the NHS by the end of this week

> Uninterrupted printing of Metro for key workers; investment in Mail Plus

> Free environmental reporting for NHS Nightingale hospitals

> Hobsons providing Naviance Curriculum for free; >3 million students benefitting

Supporting our employees

> Wellbeing of our staff remains a priority

Deep engagement with our customers

> Delivering for our supportive customer base

> Working with industry associations, regulators and governments

© 2020 DMGT 7

DMGT’s response: adapting to uncertainty

Re-prioritisation of organic investment initiatives

> Continued ROI mindset: re-prioritising in light of changing returns and faster digitisation of sectors

Responsible approach to Group self-sufficiency

> Not taken government support

Measured reduction in costs

> Overhead bases reduced, notably Events

> Reducing discretionary and third party spend, travel & entertainment and contractors

Individual business actions and contingency planning

Equity for salary scheme introduced for higher earners

© 2020 DMGT 8

Confidence in DMGT’s future

Benefits of a more focused portfolio

Financial flexibility and Cash OI focus

> Strong balance sheet with net cash

> Ability to weather challenging market conditions

> Flexibility to invest within a disciplined framework

> All DMGT’s remaining businesses are market-leading with proprietary content

> Retain benefits of diversification by sector, business model and geography

> Adaptable and agile

Our strategy has made DMGT more resilient and flexible

Dividend

> Continued real dividend growth in the first half

> Future dividends will reflect our trading and the prevailing economic outlook

© 2020 DMGT

Financial PerformanceTim Collier, CFO

© 2020 DMGT 10

Half Year 2020 performance highlights

Half Year overview

H1 in line with expectations; before FRC accounting change for H2 events costs*

Notes: (1) Cash Operating Income (cash OI) is EBITDA less capital expenditure (excludes JVs and Associates)(2) Statutory net cash of £206m. Pro forma is adjusted to exclude £117m of cash made available for pension schemes and £74m of lease liabilities recognised per IFRS 16.

> First five months at the top of our expectations

> Consumer Media: stable H1 performance

> B2B revenue growth; planned increase in investment and event cancellations impacting margins

> Active portfolio management: acquisitions and disposals

> Strong balance sheet: £163m pro forma² net cash

> Consistent with original guidance despite weak March:

• Revenues: underlying 0%

• Cash OI¹ margin 11% / 12%*

• Operating income margin 9% / 11%*

> Earnings per share: -33%

> Dividend per share: +3%

Underlying revenue growth rates 5m to Feb'20 H1 2020

DMGT Group +3% +0%

B2B +4% +2%

Insurance Risk, US Property Information, EdTech +4% +4%

UK Property Information, Events & Exhibitions +3% (2%)

Consumer Media +1% (2%)

Margins include £8m of costs relating to events scheduled in H2 2020 that have been cancelled or postponed; included in H1 following new FRC guidelines issued on 20 May 2020. Excluding these costs: 12% H1’20 cash OI margin and 11% operating income margin. More details on slide 11.

*

© 2020 DMGT 11

Cancellation and postponement of events

Costs for cancelled events included in H1 2020

Significant disruption to 2020 calendar

> All events scheduled from March to August 2020 inclusive cancelled or postponed

> Gastech Singapore postponed from September 2020 to September 2021

> Big 5 Dubai postponed from November 2020 to September 2021

> £3m of costs for March 2020 events with no associated revenue

> £8m of costs for events previously scheduled in H2 2020: accelerated into H1 2020

> Costs not treated as exceptional: specific FRC guidance on Covid-19

> Accelerated costs significantly impact H1 2020 performance: PBT 14%, EPS 20%¹

Insurance cover for communicable diseases

> Cover: $20m p.a. for each financial year to FY 2022 inclusive

> Benefit recognised in accounts when receipt virtually certain: no credit in H1 2020

Acceleration of £8m costs into H1 2020

Note: (1) Percentages stated as a proportion of reported H1 2020 adjusted results. Excluding the impact, adjusted PBT of £62m rather than £56m and EPS of 18.0p rather than 15.0p.

© 2020 DMGT

Financial Summary: Adjusted numbers

12

> Stable underlying revenue

> Cash OI and profit reduction: Covid-19 impact and planned B2B investment

> PBT and EPS impacted by April 2019 Euromoney distribution

> Effective tax rate: reduced H2 profit expectations; increased weighting of tax adjusting items (e.g. associates’ losses)

£ million H1 2019 H1 2020 Change % Underlying %

Revenue 724 690 (5%) +0%

Cash operating income ('Cash OI') 97 75 (22%) (17%)

Operating profit 90 65 (28%) (22%)

Joint ventures and associates 18 (7) N/A +24%

Net finance costs (8) (2) (70%) (81%)

Profit before tax 100 56 (44%) (20%)

Taxation and minority interests (20) (22) +8%

Profit after tax 80 34 (57%)

Earnings per share 22.5 p 15.0 p (33%)

Dividend per share 7.3 p 7.5 p +3%

Adjusted tax rate 19% 39%

© 2020 DMGT

Financial Summary: Statutory numbers

13

> Revenue, operating profit and PBT exclude Energy Information (discontinued operations)

> Profit for the period and EPS include gain on disposal of Energy Information

£ million H1 2019 H1 2020 Change %

Revenue 687 683 (1%)

Operating profit 38 37 (3%)

Profit before tax 50 80 +60%

Profit for the period 46 205 +345%

Earnings per share 12.9 p 89.7 p +595%

© 2020 DMGT

Group revenue, cash OI, and operating profit

14Note: (1) B2B cash OI and operating profit includes £8m of costs relating to events scheduled in H2 2020 that have been cancelled or postponed. Excluding the recognition of these accelerated costs, the DMGT cash OI margin would have been 12% and the DMGT operating margin 11%.


Revenue: B2B 381 345 (9%) +2%

Consumer Media 343 345 +1% (2%)

DMGT Revenue 724 690 (5%) +0%

Cash OI: B2B¹ 75 45 (40%) (30%)

Consumer Media 44 48 +8% (1%)

Corporate costs (22) (18) (20%) (20%)

DMGT Cash OI 97 75 (22%) (17%)

Operating profit: B2B¹ 71 40 (44%) (35%)

Consumer Media 39 44 +15% +4%

Corporate costs (19) (18) (5%) (5%)

DMGT Operating profit 90 65 (28%) (22%)

DMGT Cash OI margin¹ 13% 11%

DMGT Operating margin¹ 12% 9%

© 2020 DMGT

Diverse revenue streams

15

27%

21%

11%

12%

14%

15%

Circulation

Subscriptions

Events

Digital Advertising

Print Advertising

Transactions & Other

Note: Percentages in the slices represent share of revenues in H1 2020. The +X% and (X)% percentages represent underlying growth rates during the six months.

Revenues by type and underlying growth rates

+4%

(5)%

+1%

+14%

(6)%

(4)%> Steps taken to increase

average contract length

> Insurance Risk, EdTech and US Property Information

© 2020 DMGT

B2B Summary

16

Continued revenue growth; profit impacted by Covid-19 and planned investment

> More focused portfolio: Energy Information exit and Property Information disposals

> Continued underlying revenue growth

> Reduced margins: Covid-19 impact; planned investment, minimal capitalisation of development costs

> H2 to date:

Continued revenue strength: Insurance Risk, EdTech & US Property Information

UK Property Information experiencing exceptionally low transaction volumes

Note: (1) Margins include £8m of costs relating to events scheduled in H2 2020 that have been cancelled or postponed; 15% H1’20 cash OI margin and 14% operating margin excluding these.


Revenue 381 345 (9%) +2%

Cash OI 75 45 (40%) (30%)

Operating profit 71 40 (44%) (35%)

Cash OI margin¹ 20% 13%

Operating margin¹ 19% 11%

© 2020 DMGT 17

> Continued strong renewals and analytical services performance

> Increasing investment continues as planned

> Good progress with accelerated roadmap: product releases and models on Risk Intelligence platform

> H2 and Covid-19:

Revenue mix: c.95% subscriptions, 2.5 years average contract length; no material impact on sales cycle to date

Business remains on track

Insurance Risk: RMSPerformance in line with expectations

Revenue and underlying growth Cash OI and margin Operating profit and margin

£119m £123m

H1 2020

+0%

H1 2019

+2%

£26m£22m

H1 2019 H1 2020

22%

17%

£26m

£19m

H1 2019

22%

H1 2020

16%

© 2020 DMGT 18

> More focused portfolio: disposal of On-geo and BuildFax

> UK Landmark: stronger product lines; successful acquisition integration

> Investment in product development: Trepp CLO and expanding Landmark’s services

> H2 and Covid-19:

UK - Landmark: c.85% revenue exposure to transaction volumes, April revenues down underlying –44%; April operating loss

US - Trepp: continued growth - subscription business and encouraging sales pipeline

Property InformationStrength in US


£21m

£14m

H1 2019

14%

H1 2020

19%

£21m

£12m

12%

H1 2020H1 2019

18%

£99m £96m

£15mExited business

H1 2019

+0%

H1 2020

(2)%

© 2020 DMGT 19

> c.620k is considered by us to be natural market floor due to death, divorce and default

> Market now significantly below floor

> Some transactions still completing due to pre Covid-19 pipeline

> Inherent lag from instruction to completion: market could fall further in coming weeks

> UK government announced easing of lockdown from 13 May 2020 to reinvigorate the market

Property InformationUK residential property transaction volumes

0

200

400

600

800

1,000

1,200

1,400

1,600

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Th

ou

san

ds

The usual floor of a functioning market

Estimated current market²

Notes: (1) Based on HMLR Price Paid Data for England and Wales(2) Estimated market volumes for two months of April and May 2020.

© 2020 DMGT

20

> Continued strong revenue growth across all three businesses: Naviance, Intersect and Starfish

> Investment in modernising core product platforms

> H2 and Covid-19:

Subscriptions: c.90% of revenues and 2 year average contract length

Slower sales cycle for new business and pressure on customers’ budgets

EdTech: HobsonsContinued strong revenue growth


£4m £4m

9%

H1 2019 H1 2020

12%

£3m

£2m

5%

H1 2019

8%

H1 2020

£38m£42m

H1 2019

+14%

H1 2020

+10%

© 2020 DMGT 21

> Revenues: +1% underlying vs. +8% for 5 months to Feb’20 (cancellation of all March events)

> Margins impacted by event cancellations, investment (notably in ADIPEC) and revenue mix

> £8m of cancelled H2 event costs and £3m of cancelled H1 event costs in H1’20¹

> H2 and Covid-19:

Impact of cancellation or postponement of future shows

H2: continued overhead costs and timing of insurance receipts

Events and Exhibitions: dmg eventsMarch to August events and Gastech cancelled or postponed

Revenue and underlying growth Cash OI and margin¹ Operating profit and margin¹

H1 2019

25%

H1 2020

£73m £77m

+2%

H1 2019 H1 2020

+1%

Note: (1) H1 2020 Cash OI and operating profit include £11m of costs relating to cancelled events, £3m relating to events scheduled in H1 and £8m to events scheduled in H2. Excluding the £8m of accelerated H2 2020 costs, the cash OI margin would have been 16% and the operating margin would have been 17%. Excluding the full £11m, the cash OI margin would have been 20% and the operating margin 21%.

£18m

£5m

6%

£8m

£3m

25%

H1 2019 H1 2020

£18m

£5m

6%

£8m

£3m

© 2020 DMGT 22

Consumer Media: dmg mediaDigital growth offsetting print decline


Daily Mail / The Mail on Sunday 208 196 (6%) (6%)

Circulation 144 137 (5%) (5%)

Advertising 57 54 (7%) (7%)

Other 7 6 (15%) (15%)

MailOnline 69 79 +14% +14%

DailyMailTV 7 4 (45%) (45%)

Mail Businesses 284 278 (2%) (2%)

Metro 41 41 +1% +1%

'i' - 12 N/A (2%)

Newsprint & other 19 14 (28%) (8%)

Total Revenue 343 345 +1% (2%)

© 2020 DMGT

> H1 revenues: advertising growth more than offset by circulation decline

> H1 includes 4 months of the ‘i’

> Improving Cash OI and operating margins: continued focus on managing cost base

23

Consumer Media: dmg mediaStrong five month performance


£44m £48m

13%

H1 2020H1 2019

14%

£39m£44m

13%

H1 2020H1 2019

11%

£343m £345m

H1 2019 H1 2020

+1% (2)%

© 2020 DMGT 24

Consumer Media: dmg mediaH2 and Covid-19

Notes: (1) Apr’20 revenue growth refers to the four weeks to Sunday 26 April 2020 compared to the same four week period in the prior year.(2) May’20 revenue growth refers to the estimated growth in the four weeks to Sunday 24 May 2020 compared to the same four week period in the prior year.

> Revenue impact of Covid-19 pandemic:

Very challenging advertising market

Reduced circulation volumes; Mail and ‘i’ volumes increased each week since 5 April 2020

Good digital audience growth

May better than April

> Profit impact of Covid-19 pandemic:

Higher flow-through from advertising than circulation revenues

April 2020 loss: mid-single digit negative operating margin

May 2020 current expectation: small loss

Revenue: underlying growth rates Apr'20¹ May'20²

Consumer Media (33%) (30%)

Circulation (17%) (9%)

Advertising (46%) (45%)

Print advertising (69%) (70%)

Digital advertising (16%) (17%)

© 2020 DMGT 25

Joint Ventures and AssociatesDMGT’s share of operating profits

> Euromoney: stake distributed to DMGT shareholders in April 2019

> Other JVs & Associates: larger stake in Yopa during H1 2020 (c.45%)

> Investments: increased stake in Cazoo to c.23%, successful launch to market

> H2 and Covid-19: Difficult time for early-stage businesses but opportunities to accelerate disruptionMajor associates and investments are well funded


Euromoney 23 - (100%) N/A

Other (6) (7) +24% +24%

Total JVs and associates 18 (7) N/A +24%

© 2020 DMGT 26

Exceptional items and amortisation

Note: Figures include discontinued operations (Energy Information) and JVs and associates

> Exceptional cash operating credit

> Profit on sale of assets includes £134m for the Energy Information business, Genscape

> Expected H2 FY 2020 exceptional non-cash charge of c.£20m relating to amendments to existing RMS 2015 incentive plan for broader employee base

Continuation of low level of exceptional costs

£ million H1 2019 H1 2020

Exceptional cash (costs) / credit (3) 8

Other non-cash exceptional costs (3) -

Share of associates' exceptional operating credit 7 -

Total exceptional operating credit 1 8

Impairment of intangible assets & goodwill (49) (12)

Amortisation, impairment of plant & other (22) (6)

Profit on sale of assets 16 179

Pre-tax exceptional (costs) / credit (53) 169

© 2020 DMGT

Net cash movement

27

247

163

206

22

117

10 30

20

38

93

74

-

50

100

150

200

250

300

350

£m

H2 distribution

Opening pro forma

M&A

Operating profit

Capital expenditure

Other operating cash flow

Taxation Pensions Interest¹

DividendsDepreciation and

amortisation

Closing pro forma net

cash31 Mar’20

65

Acquisitions, investments and other²

IFRS 16 lease

liabilities

20

Closing balance sheet

net cash 31 Mar’20

Ring-fenced cash for pension schemes

Disposals

Cash OI £75m

Notes: (1) Taxation £10m, Pensions £16m and Interest received £7m(2) Acquisitions, investments and other includes £89m of acquisitions and investments and £4m non-cash movements in debt.(3) Operating cash conversion % = operating cash flow / adjusted operating profit

> Other operating cash flow (-£30m): usual seasonal outflows (e.g. bonus payments)

> Operating cash conversion 69%³ (vs. 40% H1 2019); Cash OI 115% of adjusted operating profit

© 2020 DMGT

Gross cash and facilities >£700m

28

Well positioned to weather challenging market conditions

> £203m bonds not due until 2027 (6.375% coupon)

> £380m committed facilities to March 2023

163

361

741

380

4

-

100

200

300

400

500

600

700

800

£m

Pro forma net cash

203

Bonds due 2027

Gross cash²

Committed undrawn

bank facilities

Total gross cash and bank facilities

Collateral and other

debt¹

74

23

Notes: (1) Collateral and other debt includes £22m collateral largely offset by £1m April 2021 bonds and £17m of derivatives and other debt.(2) Gross cash includes cash, cash equivalents and short-term deposits, net of overdrafts and excludes the £117m made available to the pension schemes.

© 2020 DMGT 29

Clear capital allocation framework

Prioritise organic opportunitiesRe-prioritising investment through the cycle

Focus on growth opportunities and disruptive technologies

Dividend Dividend policy: real dividend per share growth

Balanced and flexible approach to uses of capital

Acquisitions approach: structured & disciplined

Maintaining financial flexibility

Shareholder returns

Underpinned by strong balance sheet, maintaining financial flexibility

© 2020 DMGT 30

H2 2020 trading to date and outlook

DMGT Group – April 2020

> Underlying revenues -23%

> £3m operating loss (April 2019, £5m operating profit)

B2B portfolio

> April 2020: total underlying revenues -11%

> Insurance Risk, US Property Information & EdTech: +5% April; H2 expected to be relatively unaffected

> Events & Exhibitions: potential additional cancellations; continued overheads; insurance timing uncertain

> UK Property Information: -44% April and operating loss; inherent lag in market – recovery will take time

Consumer Media

> Underlying revenues: -33% April, -30% 4 weeks of May – improving circulation

> Operating margin: negative mid-single digit April, expect small loss in May

© 2020 DMGT 31

Outlook

Strong balance sheet

> Strategy unchanged: maintaining financial flexibility

Duration of disruption unknown

> UK lockdown, advertising market and property market will be key

> Continuously reviewing potential actions to protect profits

> No guidance: suspended in March 2020

© 2020 DMGT

Business UpdatePaul Zwillenberg, CEO

© 2020 DMGT 33

Strategy unchanged; adjusting to market conditions

Long-term perspective

Adjusting to the current challenges

> Laser focus on operational execution

• Reducing potential cost commitments (e.g. hiring)

• Realigning choices about where to invest

> Customer-centric approach to prioritisation

> Contingency plans for different scenarios; agility is key

> Challenging businesses to plan for the post Covid-19 reality

• Investing in proprietary content and data science

• Prioritising effectively in a changing landscape

• Re-assessing potential opportunities

> Portfolio roles remain important

© 2020 DMGT 34

Encouraging customer engagement

> Virtual Exceedance customer event May 2020

> Continued strong renewals

Business updateInsurance Risk: RMS

Focus on product delivery: on track

> Risk Modeler 2.0 available in June 2020 on Risk Intelligence platform:

• All natural catastrophe models in one place, enabling complex analyses

• Model run times reduced 4-6x vs. RiskLink

• HD models brought on individually from July to September 2020

> Advanced applications for Risk Intelligence platform:

• Exposure IQ 1.3; available in September 2020

• Treaty IQ 1.0; available in December 2020

> HD models: new European Severe Convective storm May’20; updates to four others

© 2020 DMGT 35

Business updateProperty Information

UK Property Information: Landmark

> Market-leading products and services across the entire property transaction value chain:

• Acquisitions: Optimus (Jul’19) and OneSearch Direct (Dec’19)

• Investing while digitisation of sector is accelerating

> Accelerating development of digital tools; retiring older products faster

> Customer engagement and product enhancement when others are furloughing

> Expect further market share gains; well positioned for market recovery

US Property Information: Trepp

> Increased customer demand for analytics to understand their exposure

> Core CMBS¹ business performing well

> CRE¹ and banking businesses benefiting from previous investment

> Accelerating roll-out of new CLO¹ product

> Very strong renewals and good sales pipeline

Notes: (1) CMBS = Commercial Mortgage Backed Securities. CLO = Collateralised Loan Obligations. CRE = Commercial Real Estate

© 2020 DMGT 36

Business updateEdTech and Events & Exhibitions

EdTech: Hobsons

Events & Exhibitions: dmg events

> Continued strong growth in March and April

> Strong suite of ‘student success’ products that deliver ROI for customers

> Investing to accelerate modernisation of platform

> Uncertain impact on customers’ budgets

> Entering peak customer renewal season

> Profound impact from travel and social distancing restrictions

> Market-leading events: well-positioned to be most resilient upon market recovery

> Continued important role for face-to-face events in digitising world

> Acquisition of 11 small events in April 2020: energy (gas & LNG) and Africa focus

> Working closely with venues and industry associations

© 2020 DMGT 37

Business updateConsumer Media: dmg media

Market conditions

Crucial importance of news and information

> Accelerated migration to digital news

• MailOnline: 169m average daily minutes¹ in April 2020, up +34%

• Mail+ paying subscribers: >80k vs. 40k Feb’20

• Mail+ free enhanced content: >270k weekly unique visitors (<20k Dec’19)

> More subscribers to Mail home delivery (>65k additions since Feb’20)

> Metro readership will reflect commuting habits

> The ‘i’ expands the reach of dmg media’s brands; integration on track

> Difficult advertising market

> Unclear how new readership habits will evolve

> Reader engagement will help to support revenue recovery in time

Note: (1) Average daily minutes exclude time spent viewing videos.

© 2020 DMGT 38

Summary

DMGT is resilient and adaptable

Sensible, responsible measures to minimise impact

Retain long-term perspective

Confident in creating long-term value

Satisfyingthe needto know

© 2020 DMGT 39

Daily Mail and General Trust plc

QuestionsTo ask a question, please dial:UK: +44-(0)330-336-9411US: +1-646-828-8143Confirmation code: 9513118

© 2020 DMGT

Appendix

© 2020 DMGT

Revenue dynamics

41

Continued subscription growth

Note: Share of revenues shown to nearest whole percentage.

£ million % of total H1 2019 H1 2020 Change % Underlying %

Advertising - print 14% 98 97 (1%) (3%)

- digital 12% 71 82 +15% +14%

Circulation 21% 144 145 +1% (5%)

Subscriptions 27% 213 189 (11%) +4%

Events 11% 73 77 +6% +1%

Transactions & other 15% 126 101 (20%) (7%)

Total Revenue 100% 724 690 (5%) +0%

+4%

© 2020 DMGT

Category analysis

42

Revenues by type: H1 2020

£ millionInsurance

Risk

Property

InformationEdTech

Events and

Exhibitions

Energy

Information

Consumer

MediaTotal

Advertising - print - - - 1 - 96 97

- digital - - - - - 82 82

Circulation - - - - - 145 145

Subscriptions 117 27 38 - 7 - 189

Events - - - 76 - - 77

Transactions & other 6 69 4 - 1 22 101

123 96 42 77 7 345 690

© 2020 DMGT

Geographical diversity

43

55%

26%

19%

UK

North America

Rest of World

Rest of World revenues, 19%: • 8% Rest of Europe • 11% Asia, Middle East, Caribbean,

Africa and Latin America

Revenues by destination: H1 2020

© 2020 DMGT

Geographical analysis

44

Revenues by destination: H1 2020

Note: This table shows the revenues based on the location of the customers receiving the goods or services.

£ millionInsurance

Risk

Property

InformationEdTech

Events and

Exhibitions

Energy

Information

Consumer

MediaTotal

UK 27 69 - 2 - 279 378

North America 65 25 42 3 6 40 181

Rest of World 31 2 - 72 1 26 132

Total Revenue 123 96 42 77 7 345 690

© 2020 DMGT

Underlying analysis

45

Revenues

Notes: (1) Underlying results are adjusted for constant exchange rates, the exclusion of disposals and business closures, the inclusion of the year-on-year organic growth from acquisitions and for the consistent timing of revenue recognition. For events, the comparisons are between events held in the year and the same events held the previous time. For Consumer Media, underlying revenues exclude low margin newsprint resale activities. For a full explanation of underlying growth rates and adjustments see slide 58.(2) 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

Insurance Risk +2% 120 - 1 - 119 123 - - 123

Property Information (2%) 99 (15) - - 114 97 1 - 96

EdTech +10% 38 - - - 38 42 - - 42

Events and Exhibitions +1% 77 1 1 3 73 77 - - 77

Energy Information N/A - (37) - - 37 - (7) - 7

+2% 334 (51) 2 3 381 339 (6) - 345

Consumer Media (2%) 344 18 - (18) 343 339 6 (13) 345

DMGT Revenue +0% 677 (33) 2 (15) 724 677 - (13) 690

H1 2019 H1 2020

© 2020 DMGT

Underlying analysis

46

Cash operating income

Notes: (1) For an explanation of underlying growth rates and adjustments see slide 58. (2) Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.


Insurance Risk (19%) 26 - - - 26 22 - - 22

Property Information (40%) 22 1 - - 21 14 - - 14

EdTech (17%) 4 - - - 4 4 - - 4

Events and Exhibitions (37%) 19 - - - 18 12 - 7 5


B2B (30%) 72 (4) - - 75 50 (2) 7 45

Consumer Media (1%) 51 7 - - 44 50 3 - 48

Corporate costs (20%) (22) - - - (22) (18) - - (18)

Cash operating income (17%) 100 3 - - 97 83 1 7 75

H1 2019 H1 2020

© 2020 DMGT

Underlying analysis

47

Adjusted operating profit and PBT

Notes: (1) For an explanation of underlying growth rates and adjustments see slide 58.(2) Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.


Insurance Risk (27%) 26 - - - 26 19 - - 19

Property Information (44%) 21 - - - 21 12 - - 12

EdTech (34%) 3 - - - 3 2 - - 2

Events and Exhibitions (34%) 19 - - - 18 12 - 7 5


B2B (35%) 69 (3) 1 - 71 45 (2) 7 40

Consumer Media +4% 45 7 - - 39 47 3 - 44

Corporate costs (5%) (19) - - - (19) (18) - - (18)

Operating profit (22%) 95 4 1 - 90 74 1 7 65

Joint ventures and associates +24% (6) (23) - - 18 (7) - - (7)

Net finance charges (81%) (8) - - - (8) (2) - 1 (2)

Adjusted profit before tax (20%) 81 (19) 1 - 100 65 1 8 56

H1 2019 H1 2020

© 2020 DMGT

Net finance costs

48

> Benefit of Dec’18 bonds maturing and increased net cash


Net finance costs 14 8 (42%) (48%)

Investment revenue (7) (6) (8%) (8%)

Total net finance costs 8 2 (70%) (81%)

Items excluded from adjusted results:

IAS19(Revised) finance credit (4) (2) (43%) N/A

© 2020 DMGT

Adjusting items

49

Reconciliation from statutory PBT to adjusted PBT

Note: (1) The £179m profit on disposal shown on slide 26 includes the £134m 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.

£ million H1 2019 H1 2020

Statutory Profit Before Tax - continuing operations 49 80

Add: statutory PBT - discontinued operations 1 13

Add: Profit on disposal of discontinued operations¹ - 134

Statutory PBT including discontinued operations 50 227

Reverse: Pre-tax exceptional costs / (credit) (slide 26) ¹ 53 (169)

Remove: IAS19(Revised) credit (slide 48) (4) (2)

Adjusted Profit Before Tax 100 56

© 2020 DMGT 50

Gastech and Big 5 Dubai both postponed to September 2021

A Annual

18M c.18 Months

Key

FY16 FY17 FY18 FY19

Revenues £m £m £m £m

Total for 3 largest events 61 70 68 74

Other events 44 47 49 45

Total revenues 105 117 118 119

P¹

P²

> Gastech: Singapore event postponed from Sep’20 to Sep’21

> Big 5 Dubai: postponed from Nov’20 to Sep’21

> ADIPEC: currently still scheduled for Nov’20

Major event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Gastech 18M 18M 18M A P¹

Big 5 Dubai A A A A A P²

ADIPEC A A A A A A

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

© 2020 DMGT

Balance Sheet

51

Note: The 31 March 2020 balance sheet is stated before the pro forma adjustments for of £117m cash being made available to the pension schemes and in respect of the £74m of IFRS 16 lease liabilities.

£ million 31 Mar'19 31 Mar'20 Movement

Goodwill & Intangible assets 417 355 (62)

Investments in JVs and associates 82 64 (18)

Other non-current assets 213 357 144

Businesses held for sale 710 4 (705)

Other current assets (excl. cash) 339 291 (48)

Net cash 172 206 35

Pension surplus 236 352 116

Dividends payable (874) - 874

Other liabilities (539) (531) 8

Net assets 756 1,099 343

Equity attributable to owners of DMGT 747 1,099 352

Non-controlling interests 9 - (9)

Shareholders' equity 756 1,099 343

© 2020 DMGT

Net cash

52

Significant financial flexibility

> Gross cash and facilities of >£700m

> Bonds not due until 2027

Bonds Coupon £m

April 2021 10.0% (1)

June 2027 6.375% (203)

(203)

Lease liabilities recognised per IFRS 16 (74)

Collateral, other debt and derivatives 5

Cash and short-term deposits, net of overdrafts 478

Net cash as at 31 March 2020 206

Exclude lease liabilities recognised per IFRS 16 74

Funds to be made available to pension schemes (117)

Pro forma net cash as at 31 March 2020 163

Bank facilities Facility Drawings Undrawn

Expiring March 2023 380 - 380

© 2020 DMGT 53

Defined benefit pension schemes

Triennial actuarial valuation as at 31 Mar’19

Existing funding plan was agreed post 31 Mar’16 actuarial valuation

Pro forma accounting surplus of £469m¹ as at 31 Mar’20 (£332m as at 30 Sep’19)

> IAS 19 (Revised)

> Assumptions differ to those used for actuarial valuation

> c.£16m p.a. from FY 2020 to FY 2027

> In certain circumstances, up to 20% of any future share buy-backs

> Contributions cease once actuary agrees schemes not in deficit

£117m made available to pension schemes in April 2019

> Currently remains ring-fenced on DMGT balance sheet as cash

> Timing and amounts of funding to be agreed with Trustees

Note: (1) The pro forma surplus includes £117m of cash being made available to the pension schemes

> Discussions with Trustees in progress

© 2020 DMGT

Reporting calendar

54

Reporting dates for FY 2020

Release or event Provisional Date

Nine month trading update 23 July 2020

Full year results 23 November 2020

© 2020 DMGT

0

2

4

6

8

10

12

14

16

18

20

22

24

Dividend Inflation

1989 2019

Real dividend growth continues

55

30 year CAGR: 8%

FY 2019 Full Year dividend of 23.9 pence, up +3%

23.9p

5.1p2.5p

© 2020 DMGT

FX Rate

56

The weaker US dollar (H1 2020 vs. H1 2019)

1.20

1.22

1.24

1.26

1.28

1.30

1.32

1.34US $ / GBP £

H1 2019: $1.29

H2 2019: $1.26

H1 2020: $1.28

Note: The revenue impact is based on restating H1 2019 results using the H1 2020 exchange rates. Given the 1 US cent movement in the average exchange rate and it only being asix month period, the operating profit impact was less than £0.5m.

Weaker US dollar in H1 2020

> c.£2m revenue impact

© 2020 DMGT

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Share price performanceThe 30 year view – excluding dividend reinvestment

FTSE 'All Share'

DMGT 'A' Shares

51

© 2020 DMGT

Notes

58

Adjusted results

Unless otherwise stated, all profit and profit margin figuresrefer to adjusted results and not statutory results. The Boardand management team use adjusted results, rather thanstatutory results, to give greater insight to the financialperformance of the Group and the way that it is managed.Similarly, adjusted results are used in setting managementremuneration. Adjusted results are stated beforeexceptional items, other gains and losses, impairment ofgoodwill and intangible assets, amortisation of intangibleassets arising on business combinations, pension financecredits and fair value adjustments.

Percentages

Percentages are calculated on actual numbers to onedecimal place.

The effect of roundings

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

Underlying growth rates

Underlying growth rates are on a like-for-like basis.Underlying revenues, cash operating income and operatingprofits are adjusted for constant exchange rates, theexclusion of disposals and closures, the inclusion of theyear-on-year organic growth from acquisitions and for theconsistent timing of revenue recognition. Cash operatingincome, operating profits and finance costs are alsoadjusted in respect of IFRS 16, so the calculationmethodology is consistent across periods. For events, thecomparisons are between events held in the six-monthperiod and the same events held the previous time.Consequently, underlying growth rates include all costs forevents that were scheduled in March 2020 and werecancelled or postponed, but exclude all costs associatedwith events originally scheduled for later in the year. ForConsumer Media, underlying revenues exclude low marginnewsprint resale activities. The underlying change in theshare of operating profits from joint ventures andassociates excludes Euromoney Institutional Investor PLC.

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