2002 preliminary results. continuing turnover (£m) continuing operating profit* (£m) eps * (p)...

1

2002 PRELIMINARY RESULTS2002 PRELIMINARY RESULTS

Continuing turnover (£m)

Continuing operating profit* (£m)

EPS * (p)

Dividend per share (p)

Net cash (£m)

Financial Results Financial Results Twelve months to 31 December

20022002 2001 Change%

*before exceptionals and amortisation of intangibles

930.5

81.7

17.9

12.0

49.3

793.4

64.9

16.5

7.0

93.5

(14.7)

(20.6)

(7.8)

(41.7)

89.7

2

3United Business Media

2002 Review2002 Review

Strong performances in CMP Asia, CMP Information, UAP and NOP UKProfit up 32.3 per cent to £44.9m

CMP Media revenues stabilising Profit in Q4

Profit from US businesses down 58.1 per cent to £20.0mContinuing revenue and margin pressure at PRN and NOP

Margins 8.2 per cent (8.8 per cent)H2 7.2 per cent (5.0 per cent)


2002 Review2002 ReviewFurther major action on costs

£180m annualised cost savings since 2000

Market share gains, and yields holding up relatively well

Cash conversion around 140%Tight controls of working capital and capexStronger balance sheet, £94m net cash positive

Continuing commitment to organic investment £20m on new product developmentOver 40 major launches


Trading OutlookTrading Outlook

Continued tough trading conditionsJan/Feb revenue generally following late ’02 trends

Professional media margins to benefit from cost savingsNews distribution still under pressureMarket research underpinned by continuous businesses

Revenue outlook clouded by geopolitical concerns

Managing costs in line with revenues


2003 Performance and Growth2003 Performance and Growth

Group margin boosted by efficient cost base10 per cent target

Maintaining new product investment

Targeting further market share

Strong cash generation

Building value in investment portfolio

Share buyback programme

7

FINANCIAL REVIEW


Continuing turnover (£m)

Continuing operating profit* (£m)

Discontinued operating profit* (£m)

Total operating profit* (£m)

Net Interest (£m)

Other finance expense (FRS17)

PBT * (£m)

Taxation* (£m)

EPS * (p)

Dividend per share (p)

Financial Results Financial Results Twelve months to 31 December

20022002 2001 Change %

*before exceptionals and amortisation of intangibles

930.5

81.7

(20.1)

61.6

35.8

(1.5)

95.9

(25.0)

17.9

12.0

793.4

64.9

-

64.9

10.1

(2.1)

72.9

(16.0)

16.5

7.0

(14.7)

(20.6)

-

5.4

-

-

(24.0)

36.0

(7.8)


Operating profit (before goodwill & exceptionals)

Depreciation

Capex

Working capital/other

Operating cash inflow

Cash conversion

20022002£m£m

64.9

23.2

(10.9)

13.8

91.0

140.2%

Cash ConversionCash ConversionTwelve months to 31 December

Further Cash FlowsFurther Cash FlowsTwelve months to 31 December

Operating cash inflow

Dividends paid

B shares

Tax refunded

Net interest received

Investments (including channel five)

Payments relating to property and redundancy

Payments relating to prior year disposals

Foreign exchange

Other

Increase in cash in the period

20022002£m£m

91.0

(14.4)

(7.4)

15.3

4.4

(13.6)

(35.1)

(19.0)

24.0

(1.0)

44.2 10

£ Cash

£ Debt

$ Cash (in £)

$ Debt (in £)

Other

Net Cash

Channel five

Net Interest

Other financial expenses - FRS17

P&L Interest

Breakdown of Net Cash and Breakdown of Net Cash and Interest Interest

Interest %

31 Dec 2002£m

Interest£m

245

(16)

480

(637)

22

94

156

4.0

3.8

2.2

3.0

1.0

11.0

(2.1)

16.9

(24.4)

0.1

8.8

10.1

(2.1)

8.0 11


Exceptional ItemsExceptional Items

Impairment provisionsCMP Media £60mNOP World £37mPR Newswire £17m

Property

Payments relating to prior year disposals

20022002£m’s£m’s

114.2

30.0

14.0

158.2


Segmental AnalysisSegmental AnalysisTwelve months to 31 December

20022002£m£m

20022002£m£m

Group TurnoverGroup Turnover Operating Operating ProfitProfitChange

%Change

%Underlying

%Underlying

%

CMP Media

CMP Asia

CMP Information

UAP

PR Newswire

NOP World

Total Continuing

252.4

51.1

113.4

58.1

105.4

213.0

793.4

(31.9)

4.3

(13.3)

1.2

(17.7)

9.3

(14.7)

(9.4)

13.7

12.7

12.7

17.3

17.9

64.9

(20.5)

2.2

84.1

35.1

(51.7)

(25.4)

(20.6)

(28.7)

5.2

(4.2)

1.9

(13.8)

(10.6)

(16.1)

(16.4)

6.5

187.5

35.4

(44.4)

(21.0)

(8.9)


Margin Performance Margin Performance

H1 2001%

H1 2002%

H2 2001%

H2 2002%

TOTAL 12.2 9.1 5.0 7.2

CMP Media 6.5 (6.2) (14.6) (0.9)

CMP Asia 34.0 30.2 20.9 23.4

CMPi 0.7 11.9 10.2 10.4

UAP 16.3 23.4 16.5 20.3

PR Newswire 29.7 21.4 25.7 10.4

NOP World 13.9 11.3 11.3 5.7


InvestmentInvestment

Net debt capacity around £400mminimum interest cover of 5 timesconservative approach to financing

Acquisition financial criteria

cost of capital 8%generally eps enhancing first full year

Review buy backs and special dividends

Investment targets

2 to 4 year payback


Investment Performance Investment Performance

Mixed performance from acquisitions

cost synergies delivered

revenues impacted by general US economic weakness

£124m acquisitions in 2001

RoperASW (Custom) under performed

Allison-Fisher (Auto) strong performance

KSS in line with acquisition plan

New product initiatives

Started well in a difficult market – steady pipeline for 2003


Pensions Pensions

Introduced FRS17

Pension deficit of £90.9m (£41.0m)

2002 £6.8m (£4.2m) charge

Currently forecast to be around £12m in 2003

Approx 50:50 split between bonds and equities


20022002£m£m

2001£m

Change%

Turnover

Operating profit

Trade Investments : FiveTrade Investments : Five

Twelve months to 31 December - Unaudited

244.8

(4.5)

198.1

(48.3)

23.6

90.6

Audience share up to 6.5% (5.9%)

Advertising share up to 7.5% (6.4%)

Net book values:Five £120mOther investments £50m

19

OPERATIONAL REVIEW


Performance Scorecard 2002Performance Scorecard 2002Against UBM internal targets

COST REDUCTIONS

MARKET SHARE

NEW PRODUCT

DEVELOPMENT

CMP Media

CMP Asia

CMPi

UAP

PR Newswire

NOP World

Constantly Improving Operational Constantly Improving Operational EfficiencyEfficiencyCost savings Vs 2000 fixed cost base

August 2001

March 2002

August2002

£60m

£110m

£165m

700Staff

1400Staff

1900Staff

21

2150Staff

£180m

February

2003


Shares of Major MarketsShares of Major MarketsCMP Media – strong growth

Ad page volume 28.4% Vs 24.9% in 2001

NOP World – assessment of market share trendsUK - holding share US custom and healthcare – lost groundUS media – robust, all major contracts renewedWorldwide automotive – solid growth

PR Newswire – gaining ground Global wire volumes: gained 2.2% to 40.0%US: holding firm YOY at 52% of earnings release volumesUK: from zero to over 10% of regulatory releases

Product DevelopmentsProduct Developments

Optimize

NetseminarsReal Time CME

CommunicationsDesign ConfPR Audit

IntraIfsec Shanghai

Rental & Staging

Matech LeatherChina

Beauty Japan

OMADisclose

MultiVu

XinhuaFinancial

News

MRI National Study - Hispanic

Tech Confidence Barometer

NOP Consulting

LifeMatrix

RoperASW Consumer Online PanelScripdriver

OMA Hispanic

Daltonsbusiness.com

CME NOP Health

Databases

Shared Services

Automotive Intentions Europe

Thomson Alliance

ProfNet

Tbutton

eWatch

Influential Americans

NewsNewsDistributionDistribution

ProfessionalProfessionalMediaMedia

Market Market ResearchResearch


Operating Profit

Professional MediaProfessional Media: CMP : CMP MediaMediaTwelve months to 31 December

Turnover

(9.4) (7.8) (20.5)

20022002£m£m

2001£m

Change%

Underlying%

252.4 370.4 (31.9

)(28.7

)

(16.4)


CMP Media CMP Media 2002 Review

Delivered August revenue forecasts

Moved into operating profit in Q4

Ad page volumes down 20 per cent

Yield impact held to only a 6 per cent decline

Market share up to 28.4 per cent (from 24.9 per cent)

Revival in reseller titles, some stability in other markets

Healthcare grew 3 per cent despite market conditions

Marketing spend up and client consolidation unwound

New products: £7m investment and £7m revenue


CMP MediaCMP MediaActions and outlook Actions and outlook

Not planning on tech revenue growthAiming to hold yields

Further cost savings to flow throughTargeting margin improvements

Ongoing commitment to new product development


Operating Profit

Professional MediaProfessional Media: CMP : CMP AsiaAsiaTwelve months to 31 December

20022002£m£m

2001£m

Change%

Underlying%

Turnover 51.1 49.0 4.3

13.7 13.4 2.2 6.5

Solid progress on revenue, profit and marginsLaunches (£2.3m) boosted sq meterage, up 12.6 per centUpgraded sales and marketing programmeIntegration of KSS in Japan strengthened portfolioFurther 12 launches scheduled for 2003

5.2

Operating Profit

Professional MediaProfessional Media: CMP : CMP InformationInformationTwelve months to 31 December20022002

£m£m2001£m

Change%

Underlying%

Turnover

113.4 130.8 (13.3)

12.7 6.9 84.1 187.5

Revenue down due to ad market weakness and closures

Profits up 84% and margins doubled

Extensive continuous improvement programme

Significant cost reductions and repositioning of products

7 new products developed

Events business stronger - saw positive growth

(4.2)


Professional Media: UAPProfessional Media: UAPTwelve months to 31 December

Modest revenue growth

Profit boosted by over 30 per cent

Substantial cost saving programme

Every title delivered a profit increase

58.1 57.4 1.2 1.9

20022002£m£m

2001£m

Change%

Underlying%

Turnover

12.7 9.4 35.1 35.4Operating Profit


PR Newswire - News PR Newswire - News DistributionDistributionTwelve months to 31 December

20022002£m£m

2001£m

Change%

Underlying%

Turnover

US

RoW

Operating profit

US

RoW

95.6

9.8

105.4

18.6

(1.3)

17.3

16.4%

116.3

11.7

128.0

35.8

0.0

35.8

(17.8)

(16.2)

(17.7)

(48.1)

-

(51.7)

(11.8)

(31.1)

(13.8)

(38.9)

-

(44.4)

Margin


US message volume down 11 per cent

Revenue per message up 4 per cent

H1 market conditions continued

Earnings releases down 15 per cent, M&A down 24 per cent

Regulatory releases length up 10 per cent

Discretionary products under pressure but

MultiVu, OMA and other launches generated £6m revenue

News DistributionNews Distribution2002 Review


Impact from Sarbanes-Oxley and Corporate Governance

Further product developments

Already launched Premium Disclose – with US distribution

Target private organisations as well as listed

Develop ‘policy newswire’

Sales force restructuring – prioritise resources to major clients

Holding rate card

Adding functionality and holding prices

News DistributionNews DistributionActions and outlook


NOP World - Market NOP World - Market ResearchResearchTwelve months to 31 December

20022002£m£m

2001£m

Change%

Underlying%

Turnover

US

RoW

Operating profit

US

RoW

Margin

138.1

74.9

213.0

12.5

5.4

17.9

8.4%

125.3

69.6

194.9

19.9

4.1

24.0

10.2

7.6

9.3

(37.1)

30.9

(25.4)

(16.8)

(1.7)

(10.6)

(36.9)

42.4

(21.0)


NOP WorldNOP World2002 Review

Deterioration in US healthcare and custom markets

action on cost

revitalised product line

SMC improvement in Q4

Strength in US syndicated media and in automotive

Strength in UK financial and healthcare

UK market slowing in H2

Continuing rapid growth in online

from $7m to $30m in healthcare alone

introduced 80,000 strong RoperASW panel

New launches including LifeMatrix

already generated £1m revenue


NOP WorldNOP WorldActions and outlook

Further cost containment and improved productivity

Healthcare sector stabilising

No major syndicated media contracts up for renewal in 2003

Grow market share

Product development

• Backed by detailed client research

• e.g. launch of Scripdriver

Aggressive new marketing campaign

• New CMO appointed


United Business MediaUnited Business MediaStrategic Priorities

Improving performance

Margin target 10 per cent

Maintaining yields

Growing market share

Financial Strength

Delivering high cashflow

Building and monetising investment portfolio

Investment in growth

Continuing investment in new products

Monitoring acquisitions

2002 preliminary results. continuing turnover (£m) continuing operating profit* (£m) eps * (p)...

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cash debt

cash inflow cash conversion

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