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Annual Report 2013 22
Strategic ReportKey Performance Indicators
Description Relevance Performance Narrative Strategic priority
Underlying revenue growth
Our underlying revenue growth (after adjusting for M&A activity) is an important indicator of the health and trajectory of our businesses.
+3%+3%+2%
-8% reported
+2%
2011 2012 20132009 2010
Underlying revenue growth
Underlying revenue growth
+2%2012 | +3%
Fostering innovation to deliver organic growth.
Applying state-of-the-art technology.
Driving international growth.
Group adjusted profit before tax
As a portfolio-based Group, DMGT periodically buys and sells businesses. This KPI monitors the Groups adjusted profit before tax (shown in ms).
Adj prot before tax
255232228
186
282
2011 2012 20132009 2010
Group adjusted profit before tax#
282m2012 | 255m
Group adjusted profit before tax grew by 10% helped by increased income from joint ventures and associates and reduced net finance costs.
Maintaining active and rigorous portfolio management.
Operating margin
DMGTs investment criteria emphasise profitable, high-growth sectors. In the long term, increasing adjusted operating margin indicates an improvement in the quality of its business assets.
Operating margin
15%15%16%
13%
17%
2011 2012 20132009 2010
Operating margin#
17%2012 | 15%
Fostering innovation to deliver organic growth.
Maintaining active and rigorous portfolio management.
Driving international growth.
Applying state-of-the- art technology.
Net debt: EBITDA ratio
Management aims to regain DMGTs investment-grade status. This includes maintaining a low net debt and targets a net debt: EBITDA ratio of below 2.0 times.
Net debt: EBITDA ratio
1.62.0
2.3
3.1
1.5
2011 2012 20132009 2010
Net debt: EBITDA
1.5 times2012 | 1.6 times
Through strong operational cashflows, continued portfolio management and tight control of working capital, we have brought our net debt: EBITDA level down to its lowest level in years.
Maintaining active and rigorous portfolio management.
Earnings per share
Management seeks above average growth in adjusted earnings per share to maximise overall returns for its owners (shown in pence).
Earnings per share
49.446.146.0
33.9
53.0
2011 2012 20132009 2010
Earnings per share#
53.0p2012 | 49.4p
Fostering innovation to deliver organic growth.
Maintaining active and rigorous portfolio management.
Dividend per share
The Boards policy is to maintain dividend growth in real terms over the long term.
1993 2013
10
15
0
5
20 Dividend Inflation
6.6p
19.2p
3.7p
Dividend per share
19.2p2012 | 18.0p
We were able to continue our strong track record of dividend growth and have proposed a full year dividend of 19.2p, up by 7% from last year.
Fostering innovation to deliver organic growth.
Maintaining active and rigorous portfolio management.
Annual Report 2013 23
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Description Relevance Performance Narrative Strategic priority
B2B share of total revenues
The growth of its business divisions are key components of DMGTs strategy. This KPI tracks the proportion of total revenues attributable to B2B activities.
2013%
53
B2B share of total revenues#
53%2012 | 46%
Maintaining active and rigorous portfolio management.
Driving international growth.
International share of total revenues
This measures the proportion of revenue generated outside the UK. DMGTs long-term strategic objective is to develop into a global growth company. The KPI measures DMGTs success in internationalising the business.
2013%
42
International share of total revenues#
42%2012 | 37%
Driving international growth.
Attracting and developing entrepreneurial talent.
Digital share of total revenues
We expect digital activities to account for the majority of DMGTs future growth. This KPI tracks the rate at which the Group is monetising its digital content.
2013%
42
Digital share of total revenues#
42%2012 | 35%
Applying state-of- the-art technology.
Attracting and developing entrepreneurial talent.
Subscription share of total revenues
Subscription based revenue is a more stable and less cyclical revenue source than advertising and is largely derived from digital B2B products. This KPI tracks, relative to the rest of the portfolio, the Groups ability to generate high quality, digital B2B earnings.
2013%
29
Subscription share of total revenues#
29%2012 | 25%
Driving international growth.
Applying state-of- the-art technology.
Attracting and developing entrepreneurial talent.
Organic Investment as a % of total revenues
Investing back into the businesses, to continue DMGTs tradition of product innovation and effective use of technology, is key to delivering sustained long-term profitable growth.
Organic investment as a % of total revenues
7%
Fostering innovation to deliver organic growth.
Carbon footprint DMGT understands the importance of acting responsibly. We are targeting a 10% reduction in our carbon emissions to 37.3 tCO2/m revenue, over three years from 2012 to 2015.
Carbon footprint
41.540.941.643.3 38.6
2011 2012 20132009 2010
2013
38.6 tCO2/ m revenue2012 | 41.5 tCO2/m revenue
Attracting and developing entrepreneurial talent.
# From continuing and discontinued operations.
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