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1
2United Business Media
Turnover
Operating profit*
Earnings per share*
Net cash
Key Financials Key Financials Twelve months to 31 December
* Before exceptionals and amortisation of goodwill
£930.5m
£81.1m
18.1p
£49.3m
£1,049.3m
£161.4m
27.4p
£1,553.0m
20012001 2000
3United Business Media
Very tough trading
CMP Media EBIT down from £101m to £11m
Resilience of PRN & NOPW
Market share gains across key businesses
£110m full year cost reduction over 2000
1,400 staff reduction in 2001
Leveraged for the upturn
Strong balance sheet and cash position
£1.25 billion returned
£370m goodwill impairment
£130m of acquisitions
2001 Review2001 Review
4United Business Media
2001 Divisional Trading 2001 Divisional Trading
NOPW: resilient but H2 weakness in UK
PRN: lower volumes but increasing revenue per message
CMP Media:
Market share up to 28%
Ad page volumes, market down 35%, CMP down 26%
Revenue running at down 40% since September
CMP Asia: strong performance, revenue & profit ahead
CMP Information: radical restructuring to boost
performance
5United Business Media
Focus on core professional and business markets
Build market share
Maximise growth potential through investment in innovation and acquisitions
Focus on value
Progress on StrategyProgress on Strategy
6United Business Media
NOP World order book aheadUK recovering from difficult Q3US continued growth - healthcare
PR Newswire Gradual recovery since September, regulatory strong£5m invested in evaluation products & European network
CMP MediaPlanning on revenue 40% down on 2000No recovery yet: managing cost / revenue balance
CMP Asia2002 consolidation, building growth potential
CMP InformationCost restructuring leading to recovery
2002 Outlook2002 Outlook
7
FINANCIAL REVIEW
Continuing turnover (£m)
Continuing operating profit* (£m)
Discontinued operating profit* (£m)
Total operating profit* (£m)
Interest (£m)
PBT * (£m)
EPS * (p)
Dividend per share (p)
Financial Results Financial Results Twelve months to 31 December
20012001 2000 Change %
*before exceptionals and amortisation of intangibles
930.5
81.1
(20.1)
61.0
35.8
96.8
18.1
12.0
1,049.3
161.4
77.3
238.7
(43.0)
195.7
27.4
22.2
(11.3)
(49.8)
-
(74.4)
-
(50.5)
(33.9)
(45.9)
8
Impairment of goodwill – professional
media
Restructuring charges (mainly property)
Provisions for losses on closures and
disposals
Other, including acquisition integration
costs
Total
ExceptionalsExceptionalsTwelve Months to 31 December
20012001£m’s£m’s
(370.0)
(64.8)
(51.5)
(14.1)
500.4
9
Opening cash
Operating profit
Less return of capitalAcquisitionsChannel 5Interest receivedCapexDepreciationDividend paid Tax paidOther
Closing cash
CashflowCashflowTwelve Months to 31 December 20012001
£m’s£m’s1,553.0
61.0(1,225.9)
(131.8)(71.4)
23.6(27.7)
23.3(93.2)
(4.1)(57.5)
49.3
10Cash conversion 100%
Goodwill
Investments (Ch 5, SIS, SDN, ITN, PA)
Net Cash
Other net liabilities
Net assets
Balance SheetBalance Sheet 31 December 2001
£m£m
736.8
171.5
49.3
(343.6)
614.011
Segmental AnalysisSegmental AnalysisTwelve months to 31 December
20012001£m£m
20012001£m£m
Group TurnoverGroup Turnover Operating Operating ProfitProfitChange
%Change
%Underlying
%Underlying
%
Market Research
News Distribution
Professional Media
Business Services
Consumer Media
Online
Total Continuing
Discontinued
194.9
125.5
533.0
853.4
56.9
20.2
930.5
2.0
20.2
3.2
(20.1)
(10.2)
(6.3)
(47.0)
(11.3)
3.2
(2.3)
(23.3)
(16.0)
(6.3)
(48.9)
(16.7)
23.8
35.1
32.2
91.1
11.1
(21.1)
81.1
(20.1)
5.3
(13.8)
(74.0)
(51.4)
(3.1)
43.6
(49.8)
(3.7)
(15.6)
(76.3)
(54.2)
(3.1)
45.5
(52.7)
12
UBM by GeographyUBM by GeographyTwelve months to 31 December 2001
Turnover Operating Profit
US67%
UK25%
Asia 5%Europe 3%
US62%
UK15%
Asia 13%Europe 10%
13
Financial ObjectivesFinancial Objectives
United Business Media
Net debt capacity around £400m
Minimum interest cover of 5 times
Acquisition financial criteria
Cost of capital 8%
Generally EPS enhancing first full year
Investment targets
Exhibitions - break even in year 2
Organic - 2 to 4 year payback
14
Financial ObjectivesFinancial Objectives
United Business Media
Margins: specific targets set for each division
Cash conversion target of 100%
Prudent financial policies
FRS 17 (Pensions):implementation planned for 2002
• Estimated balance sheet impact c£40m
FRS 18 (Accounting Policies): implemented 2001
• Conservative revenue recognition
FRS 19 (Deferred Tax): implementation planned for 2002
• £5m write up in value
15
16
OPERATIONAL REVIEW
Operational ObjectivesOperational Objectives
Improve margins
Gain market share
Invest in innovation
Deliver synergies
across the group
Re-engineering
Shared services
New products
Margin TargetsMargin Targets
2001 MediumTerm
2002
8.7%
Towards10%
14% / 15%
17
18
VolvoVolvo
FordFord
Glaxo Smith KlineGlaxo Smith Kline
AOL Time WarnerAOL Time Warner
British Telecom British Telecom
CompaqCompaq
F. Hoffmann-La F. Hoffmann-La
RocheRoche
Visa International Visa International
Market ResearchMarket Research Twelve months to 31 December
20012001£m£m
2000£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
Margins
92.7
69.4
162.1
15.6
7.0
22.6
13.9
117.2
77.7
194.9
19.8
4.0
23.8
12.2
26.4
12.0
20.2
26.9
(42.9)
5.3
1.4
5.6
3.2
10.3
(34.3)
(3.7)
Target over 12% in 2002
19
20United Business Media
Strength in
Companies: MRI, ASW (profit level), MMI + SMC
Business areas: Healthcare, Financial, Syndicated
Pressure on
Companies: ASW (topline), NOP Research (UK)
Sectors: Technology, Consumer, Automotive, Ad Hoc
Trends
Strong H1, hard hit Q3, rebound Q4
NOP WorldNOP WorldKey trends during 2001
21United Business Media
Company
ACNielsen
IMS Health
Kantar Group
TNS
GFK
IPSOS
NOP World
Market Research Market Research MarginsMarginsComparison with NOP World
EBIT Margins 2000
10.1%
23.0%
10.9%
9.3%
7.3%
7.3%
12.2%
2001 EBIT Margin
22United Business Media
Smooth integration, are performing well
Costs being taken out of RoperASW overlaps
Revenue synergies beginning to flow
New products
Co-ordinated sales programme
AcquisitionsAcquisitionsRoper Starch, Allison-Fisher & Cozint
23
Bank of AmericaBank of America
DupontDupont
PfizerPfizer
WalmartWalmart
Johnson & Johnson &
JohnsonJohnson
MicrosoftMicrosoft
Sun MicrosystemsSun Microsystems
OracleOracle
Ford Ford
General MotorsGeneral Motors
24United Business Media
PRN PRN Strategy - The Way AheadStrategy - The Way Ahead
Serve the total communication cycle of our core marketsServe the total communication cycle of our core markets
Keys to Success
Global Reach Product Innovation Service Quality
Through
Target Evaluate
OVER 40,000 ClientsOVER 40,000 Clients
Distribute
News DistributionNews Distribution Twelve months to 31 December
20012001£m£m
2000£m
Change%
Underlying%
Turnover
US
RoW
Operating profit
US
RoW
Margins %
106.9
14.7
121.6
35.3
5.4
40.7
33.5
110.6
14.9
125.5
34.7
0.4
35.1
28.0
3.4
1.6
3.2
(1.7)
(92.6)
(13.8)
(2.1)
(3.9)
(2.3)
(6.6)
(77.8)
(15.6)
25US Margin target over 30% in 2002
26United Business Media
Market share
over 60% of Fortune 500
US message volume down 14%
Underlying growth in disclosure releases
US revenue per message up 6%
Evaluation products
now 16% (13%) of US revenue
News DistributionNews Distribution Key trends during 2001
27United Business Media
News DistributionNews Distribution Long Term US Trends
-
50,000
100,000
150,000
200,000
250,000
1993 1994 1995 1996 1997 1998 1999 2000 2001
0
100
200
300
400
500
600
700Average message growth rate 10%
No of MessagesNo of Messages
Revenue per message
$$
28United Business Media
Deregulation in LondonPRN Disclose starts April 2nd
PRN in France, Spain and Holland CyperusANP
EU proposals greater transparency + uniform disclosure standards
News DistributionNews DistributionEuropean opportunities
29United Business Media
Innovations Innovations
30
NovartisNovartis
Eli LillyEli Lilly
Computer Computer
AssociatesAssociates
AstraZenecaAstraZeneca
DellDell
SonySony
MicrosoftMicrosoft
IBMIBM
CompaqCompaq
Hewlett Hewlett
Packard/TaylorPackard/Taylor
Operating Profit
CMP Media
CMP Asia
CMP InformationTotal
Post online margin 2.2% (13.0%). Normal Target Margins 14% / 15%
Professional MediaProfessional MediaTwelve months to 31 December
20012001£m£m
2000£m
Change%
Underlying%
Turnover
CMP Media
CMP Asia
CMP Information
Total
495.6
40.7
130.5
666.8
101.4
13.9
8.7
124.0
(31.9)
17.1
(0.1)
(23.3)
(89.3)
11.8
(36.4)
(76.3)
(28.7)
20.1
0.2
(20.1)
(89.3)
5.0
(21.8)
(74.0)
353.3
48.9
130.8
533.0
10.8
14.6
6.8
32.2
31
32United Business Media
CMP Asia CMP CMP Asia CMP InformationInformation
Very strong year
Acquisition of KSS
6 launches planned in 2002
Year of radical restructuring
Resilient exhibitions
2002 margin benefitfrom cost programme
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Monthly Market Share AnalysisBy Ad Page Volumes
32.0%
CMP
9.6% Ziff
11.4% IDG10.8% Cahners
5.4% Penton
Source: IMS/Auditor
CMP – High TechCMP – High Tech
1/00 12/00 Jan 02
33
CMP Media CMP Media Monitoring key indicators
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
CMP Revenue High Tech Capex
Source: CMP, Broker Research 34
High Tech Capex and CMP Revenue
Profitability of High Tech Corporates
High Tech Capex
Semiconductors
35United Business Media
Operating Cost ReductionsOperating Cost Reductions
Saved against 2000
Operating Costs
2001
Further Savings in
2002
COSTS £M
CMP Media /
CMPi
PR Newswire
Total
42
7
49
53
8
61
503
92
595
36United Business Media
United Business MediaUnited Business MediaStrategic Priorities
Competitive and effective cost base
Market share gains, aiming for leadership
Build market research and information revenues
Cautiously acquire companies with good strategic fit
Invest in innovationbuild on sector strengths
Develop insight and evaluation products
37
Supplementary Slides
UBM Revenue TypeUBM Revenue TypeContinuing turnover - twelve months to 31 December
High Tech Advertising = 8% profits (2001) was 30% in 2000
25
16
59
HighTechAd’
Other Ad’
Non Advertising
32
1751
HighTechAd’
Other Ad’
Non Advertising
2001 2000
38
39United Business Media
Market Research Market Research Sector by % of 2001 Turnover
27%
13%
13%
16%
19%
7%5%
Field Marketing
Other
Healthcare
Automotive
Business IT
Media
Consumer
Satellite
Internet
FAX
Archiving
•Microsites
•CNOC
•VIQ
Databases
WAP/PDA’s
Multimedia
•VNR’s
•Digital Photos
•Conference Calls on the Web
•Streaming Video
EvaluateEvaluate
Who’s using the information and for what purposes?
Evaluate IR/PR programs Seek Consumer Information
Internet (eWatch)
Electronic
Clipping
E-Commerce
Market Intelligence
Usage Tracking
Sentiment Analysis
Measure (Tbutton)
-- quantitative
--qualitative
Sources (News Releases) DistributeDistribute Destinations
Corporations
Government
Associations
PR/IR Agencies
Expert Sources
News Media
Financial Markets
Investors
General Public
•(Consumers)
TargetTarget Sources
News Releases
Industry Publications
Global Media Data
IR Data
PR Newswire - PR Newswire - Service Service ContinuumContinuum
40
41United Business Media
-25% -23%-17%
14%
-30%
-20%
-10%
0%
10%
20%
Q1'01 Q2'01 Q3'01 Q4'01
US High Tech CompaniesUS High Tech CompaniesQuarterly Earnings 2001 – EPS Growth
Brokers Summary
42United Business Media
Semiconductor Worldwide Semiconductor Worldwide MarketMarketThree Month Moving Average
0
5
10
15
20
Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep Oct
Nov
Dec Jan
Feb
Mar
Apr
May Jun
Jul
Aug Sep Oct
Nov
Dec
Month
$ B
illio
ns
Source: SIA
43United Business Media
CMP Media US RevenuesCMP Media US Revenues2000 restated to exclude ALL closures
2001$m
2000$m
As reported
Titles and events
closed
Continuing revenues
741
(88)
653
501
(43)
458
InvestmentsInvestments
Ownership % Business
Channel 5 35 Free to air T.V. with RTL (65%)
ITN 20 National provider of news to ITV
SIS 20 Internet / Horse Racing
SDN 33 Digital terrestrial television/multiplex
Paperloop 38 Pulp & Paper JV
Press Association 17 News Service
44
45
A leading global provider of market information
to high growth markets.