dmgt presentation 17.9.14

8/9/2019 DMGT Presentation 17.9.14

1/20

Thursday18 SeptemberGrowth through Digital Innovation

Martin Morgan, Chief ExecutiveStephen Daintith, Finance Director


2/20


3/20

2014 DMGT | 2

Balanced Capital AllocationStephen Daintith

RMSHemant Shah & Matthew Grant

EuromoneyChristopher Fordham, Ben Jones, Bashar AL-Rehany & Simon McLoughlin

MailOnlineMartin Clarke, Jon Steinberg, Mel Scott & Richard Caccappolo

Drinks Reception

TODAYS AGENDA


4/20


5/20

2014 DMGT | 4

STEPHEN DAINTITHFINANCE DIRECTOR


6/20

2014 DMGT | 5

DMGT

Capital Allocation

RMS


7/20

2014 DMGT | 6

BALANCED CAPITAL ALLOCATION

Strong balance sheet flexible capital allocation to create shareholder value

Invest in organic growth

Targeted acquisitions

Real dividend growth

Pension fund contributions

Share buy backs

Bond buy backs


8/20

2014 DMGT | 7

TARGET 2.0X NET DEBT:EBITDA RATIO

Operating cash flow

Zoopla proceeds of 179m

Evenbase proceeds of 150m

Acquisitions during FY 2014 of c.175m

Share buy backs of 31m (completion of original 100m programme)

Bond buy back premium of 24m

At 2.0x EBITDA, >300m available for Capital Allocation


9/20

2014 DMGT | 8

Newsector

INVESTMENT PREFERENCES

AdjacentBolt-onOrganic


10/20


11/20

2014 DMGT | 10

DIVIDEND GROWTH CONTINUES

FY14 Interim dividend of 6.2 pence up 5.1%

20 year CAGR: 9%

0

2

4

6

8

10

12

14

16

18

20

1993 2013

Dividend Inflation

3.7p6.6p

19.2p

P e n c e


12/20


13/20

2014 DMGT | 12

SHARE BUY BACK

Original 100m share buy back programmeAnnounced November 2012Completed September 2014Average price of 7.09 per share

New 100m share buy back programmeOn market

M&A remains the priority


14/20

2014 DMGT | 13

NET DEBT

2.4

2.92.7

3.5

3.1 2.8

2.3 2.22.0

2.3

1.6

1.9

1.5

2.0

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

m

Net debt:EBITDA ratio comfortably below 2.0x


15/20

2014 DMGT | 14

NET DEBT POSITION

480m of bank facilities expiring March 2019

Debt management flexibility

Bonds Coupon m

December 2018 5.75% 263April 2021 10.0% 109

June 2027 6.375% 196

Total Bond Debt as at 31 Mar 2014 568


16/20

2014 DMGT | 15

RMS


17/20

2014 DMGT | 16

RMS(ONE) PRODUCT

Balance sheet carrying value of c.85m as at Sep14(c.35m capex in FY 2014)

Material impairment of the c.85m in FY2014

Materially lower capitalisation in FY2015 (vs.35m)

Balance sheet asset


18/20

2014 DMGT | 17

RMS(ONE) OUTLOOK KEY DRIVERS

Significant revenues and amortisation costscommence in FY 2016

Reduced capitalisation and increased datacentre costs in FY 2015

RMSs total operating margin likely to bec.10-15% in FY 2015 vs. c.25% in FY 2014


19/20

2014 DMGT | 18

SUMMARY

Strong balance sheet

Balanced and flexible capital allocation

Plenty of opportunity for organic investment and M&A

RMS(one) setbacks but confident of long-term prospects

Diverse portfolio with good long-term growth potential


20/20

THANK YOUDMGTNorthcliffe House2 Derry Street, London W8 5TT UKT +44 (0)20 7938 6000F +44 (0)20 7938 4626www.dmgt.com

dmgt presentation 17.9.14

Documents