Results Presentation - DMGT Presentation ... HY16 factors: Local World disposal; Gastech ... Joint...

© 2016 DMGT | 1

Results Presentation Half Year Ended 31 March 2016

Thursday 26 May 2016

© 2016 DMGT | 2

Q&A

HighlightsMartin Morgan, Chief Executive

1

Business UpdateMartin Morgan, Chief Executive

1

2

3

Agenda

Financial PerformanceStephen Daintith, Finance Director

4

© 2016 DMGT | 3

HighlightsMartin Morgan, Chief Executive1

© 2016 DMGT | 4

• Resilient Group underlying revenues

• Underlying operating profit down 12%, operating margin of 15%

• Adjusted profit before tax down 11%, EPS down 11%

• Net debt:EBITDA ratio of 2.0x

• Interim dividend of 6.7p, up 3%

• Active portfolio management

• Outlook for Full Year unchanged, except for dmg media’s operating margin

• New CEO, Paul Zwillenberg, appointed from 1 June 2016

Challenging first half – weak print advertising

© 2016 DMGT | 5

Financial PerformanceStephen Daintith, Finance Director2

© 2016 DMGT | 6

Financial SummaryAdjusted numbers

• Revenue dynamics: growth in B2B (+1%), resilient dmg media (-3%)

• HY16 factors: Local World disposal; Gastech included; FX benefit from stronger US$; print advertising declines; Euromoney challenges

• Operating profit down 12% underlying

• Adjusted profit before tax down 11%

• EPS down 11%, Dividend up 3%

£ million HY 2016 HY 2015 Change Underlying

Revenue 950 922 +3% (1%)

Operating profit 138 150 (8%) (12%)

Profit before tax 129 146 (11%)

Operating margin 15% 16%

Earnings per share 27.9 p 31.4 p (11%)

Dividend per share 6.7 p 6.5 p +3%

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B2B & Consumer diversity

* Profits include Corporate costs, allocated on a revenue basis.

Consumer

38%

62%B2B

Consumer

24%

76%B2B

HY 2016 Revenues HY 2016 Profits *

Underlying growth rates

B2B +1%, Consumer –3%Underlying growth rates

B2B -3%, Consumer –33%

© 2016 DMGT | 8

Geographical diversity

Revenues by destination and profits by source.

HY 2016 Revenues

48%UK

31%North America

21%Rest of World

HY 2016 Profits

46%UK

33%North America

21%Rest of World

Underlying growth rates UK –6%, North America +7%,

Rest of World +0%

Underlying growth rates UK –19%, North America –8%,

Rest of World -1%

© 2016 DMGT | 9

Diverse revenue streams

14%

7%

16%

31%

14%

18%

Print Advertising

Digital Advertising

Circulation

Subscriptions

Events, Conferences

& Training

Transactions & Other

Percentages represent share of revenues in HY 2016

Arrows represent underlying revenue trajectory, comparing HY 2016 to HY 2015

© 2016 DMGT | 10

Digital focus

All figures based on HY 2016 revenues.

Group HY 2016 revenues

48%Digital

38%Non-digital

14%Events

B2B only - excluding events

88%Digital

12%Non-digital

Group - excluding events

56%Digital

44%Non-digital

© 2016 DMGT | 11

B2B

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• Revenue growth despite impact of client consolidation

• Strong product development continued

• Margin benefit from reduced costs, despite £6m reduction in capitalisation

• RMS(one) on track and roll-out in progress

Outlook: Full Year 2016

• Low-single digit underlying revenue growth

• RMS(one) costs in H2 (sales & support, amortisation, ↓capitalisation)

• Full year margin in line with FY 2015 (c.14%)

Performance in line with expectations


Revenue 96 91 +6% +1%

Operating Profit 19 13 +51% +47%

Operating Margin 20% 14%

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• Underlying revenue growth across the businesses: Property +5%, Education +1% and Energy +19%

• Margin adversely impacted by ongoing investment and bolt-on acquisitions, as expected

• Bolt-on acquisitions: ETSOS (Property) and PAR Framework (Education)


• Underlying revenue growth of c.10%

• Continued ongoing investment to drive long-term growth prospects

• Operating margin in mid-teens

Continued growth


Revenue 230 201 +14% +6%

Operating Profit 25 27 (6%) +1%


© 2016 DMGT | 15

Continued revenue growth


Property - European 89 79 +12% +3%

Property - US 58 51 +14% +7%

Property 146 130 +12% +5%

Education 48 46 +5% +1%

Energy 35 24 +47% +19%

dmg information 230 201 +14% +6%

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• Continued underlying growth

• Gastech benefit to reported figures (Oct’15 & Mar’14)

• Continued growth for ADIPEC and Big 5

• Underlying profit decline; Gastechlocation and investment in attendance

• Acquisition of Exhibition Management Services


• Mid-single digit underlying and reported revenue growth

• Challenging conditions facing Canadian energy-related events (GPS)

• Operating margin of c.25%

Continued underlying growth


Revenue 72 58 +24% +5%

Operating Profit 25 17 +43% (2%)


© 2016 DMGT | 17

• Underlying revenue decline of –6%; events, training and advertising

• Reduced margin:high flow through to profits, benefit in FY15 from CAP

• New strategy presented in March 2016

• Disposal of energy publishing businesses


• Challenging market conditions continue

• Strategy being implemented and early signs encouraging

• Second half profit expected to be similar to second half of FY 2015

Challenging markets


Revenue 194 198 (2%) (6%)

Operating Profit 47 53 (12%) (15%)


© 2016 DMGT | 18

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• Underlying revenue decline of –3%; weak print advertising, digital growth, resilient circulation volumes

• Cover price increase: Daily Mail Mon-Fri 60p → 65p

• Profit and margin decline; reduction in print revenues and continued investment in digital assets

• Wowcher disposal; MailOnline Australia acquisition

FY 2016 Outlook

• Stable underlying revenues (-2% to +2%): digital growth, print decline, benefit from cover price

• Decline in reported revenues (Wowcher)

• 53 week year

• Operating margin of around 10%,

impacted by print advertising

Weak print advertising market

For the 8 weeks to 22 May 2016, underlying revenues: advertising –4% and circulation –2%


Revenue 358 374 (4%) (3%)

Operating Profit 39 57 (30%) (29%)


© 2016 DMGT | 20

Reported digital advertising growth adversely impacted by disposal of Wowcher.

‘Other’ revenues primarily relate to low margin newsprint resale activities which are excluded from underlying revenues.

Revenue


Circulation 153 157 (3%) (3%)

Advertising print 113 131 (13%) (13%)

Advertising digital 57 56 +2% +23%

Other 35 30 +16% +13%

Revenue 358 374 (4%) (3%)

(4%)

• Cover price increase (Feb’16) helps second half

© 2016 DMGT | 21

MailOnline includes Metro.co.uk website revenues but excludes Elite Daily.

‘Other – continuing’ includes newsprint resale activities and Elite Daily.


Daily Mail / The Mail on Sunday 242 260 (7%) (7%)

circulation 153 157 (3%) (3%)

advertising 80 95 (16%) (16%)

other 10 8 +16% +16%

MailOnline 44 36 +24% +20%

Mail Businesses 286 296 (3%) (3%)

Metro, 7 Days 36 39 (7%) (7%)

Other - continuing 29 22 +55%

351 356 (1%) (3%)

Wowcher 7 15 (55%)

Evenbase - 3 (100%)

Total 358 374 (4%) (3%)

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Revenue by business

• Favourable FX impact on HY 2016 reported revenues of c.£18m (Average rate $1.48 vs. $1.55 HY 2015)


B2B

Risk Management Solutions 96 91 +6% +1%

dmg information 230 201 +14% +6%

dmg events 72 58 +24% +5%

Euromoney 194 198 (2%) (6%)

592 548 +8% +1%

Consumer

dmg media 358 374 (4%) (3%)

Total Revenue 950 922 +3% (1%)

© 2016 DMGT | 23

Operating profit by business

Note: B2B and Consumer operating profits are stated before allocating Corporate costs. Including Corporate

costs, the underlying growth rates for B2B and Consumer were –3% and –33%.

• Favourable FX impact on HY 2016 reported operating profits of c.£4m (Average rate $1.48 vs. $1.55 HY 2015)


B2B

Risk Management Solutions 19 13 +51% +47%

dmg information 25 27 (6%) +1%

dmg events 25 17 +43% (2%)

Euromoney 47 53 (12%) (15%)

116 110 +6% (2%)

Consumer

dmg media 39 57 (30%) (29%)

Corporate costs (18) (17) (6%) (6%)

Total operating profit 138 150 (8%) (12%)

© 2016 DMGT | 24

• Zoopla: • Strong performance following uSwitch

acquisition: Revenues +130%, Adjusted PAT +83%, Adjusted EPS +82%

• Acquisition of Property Software Group Apr’16

• Disposal of Local World

Joint Ventures & Associates


• Zoopla seasonality (uSwitch)

• Full Year guidance: £15-20m

* Total includes other JV’s and Associates, notably Dealogic and dmg information investments

£ million HY 2016 HY 2015

Zoopla Property Group 11 7

Local World - 8

Total JV's & Associates* 11 14

© 2016 DMGT | 25

Net finance costs

• Increased share of associates’ interest payable: Zoopla’s acquisition of uSwitch


• Net finance costs c.£40m


Net interest payable 20 19

Items excluded from adjusted results:

Premium on bond redemption - 40

IAS19(R) finance costs 2 4

© 2016 DMGT | 26

Adjusted results

£ million HY 2016 HY 2015 Change

Adjusted operating profit 138 150 (8%)

Joint ventures and associates 11 14

Net finance costs (20) (19)

Adjusted profit before tax 129 146 (11%)

Taxation (19) (21)

Minorities (12) (11)

Adjusted earnings 99 114 (14%)

Adjusted EPS 27.9 p 31.4 p (11%)

Adjusted tax rate 14.8% 14.1%

© 2016 DMGT | 27

Exceptional items and amortisation

• Redundancy, consultancy and supplier administration costs relate to dmg media

• Profit on sale of assets includes Local World and Wowcher transaction

• Outlook: cash exceptional items of c.£15m for full year, primarily dmg media

¹ Cash items

² Exceptional operating costs, impairment of internally generated and acquired computer software,

property, plant and equipment and investment property: continuing & discontinued operations


Reorganisation, redundancy and consultancy 1 (6) (11)

Supplier in voluntary administration 1 (5) -

Earn-out / deferred consideration charge 1 (1) (1)

Accelerated depreciation and impairment of plant (0) (2)

Exceptional operating costs 2 (12) (14)

Amortisation of intangible assets (23) (23)

Impairment of intangible assets & goodwill (13) (8)

Profit on sale of assets 110 128

Other non-operating items 6 (7)

Pre-tax exceptionals 68 76

© 2016 DMGT | 28

Net debt movement

702

48 1633

1660

8 692

19

719

300

400

500

600

700

800

900

Opening

net debt

Operating

cash flow

Taxation Pensions Interest Dividends RMS(one)

capex

Share buy

back

M&A Debt

revaluation

Closing net

debt

• Operating cash flow is stated after capex of £35m and exceptional operating items of £9m

• Cash conversion represents operating cash flow as a percentage of operating profit

• M&A includes £112m of disposals (Local World, Wowcher, Dealogic) and £20m of acquisitions (e.g. ETSOS, PAR Framework)

£m Net debt: EBITDA 2.0xCash conversion: 35%

© 2016 DMGT | 29

Net debtNet debt:EBITDA ratio of 2.0x – targeting ≤ 2.0x

2.4x

2.9x2.7x

3.5x

3.0x 2.8x

2.3x 2.2x2.0x 2.3x

1.7x

1.8x1.6x

2.0x

1.5x

1.9x 1.8x 2.0x

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 Mar'15 Sep'15 Mar'16

£m

Half year net debt:

EBITDA 2.0x

£719m

© 2016 DMGT | 30

H1 2016 Adjusted PBTHY 2015 to HY 2016 Bridge

(2)(6)

(17)

(1)

(8) (1)146

7

8

4129

120

125

130

135

140

145

150

155

160

HY 2015 RMS dmg

information

dmg events Euromoney dmg media Central Costs Local World

Disposal

Zoopla &

Other

associates

Interest HY 2016

£m

• The HY 2016 adjusted PBT would have been c.£4m lower at HY 2015 FX rates

(Average rate of $1.48 vs. $1.55 in HY 2015)

Gastech

© 2016 DMGT | 31

• Continuing challenging market conditions facing print advertising,

Euromoney and energy events

• Significant organic investment: RMS(one), MailOnline, dmgi

• dmgi: impact of early-stage acquisitions and organic investment in

long-term growth

• Daily Mail cover price increase: Mon-Fri 60p to 65p (Feb’16)

• Disposal of Local World and Wowcher

• US$ / £ FX rate (HY 2016 $1.48 average, FY 2015 $1.54 average)

H2 2016 Financial Considerations

© 2016 DMGT | 32

¹ Due to occurrence of Gastech and the disposal of the digital marketing events, both the reported and underlying revenue growth

rates are expected to be in the mid-single digits.

² Stable revenues for dmg media means -2% to +2%.

• Corporate costs c.£40m

• JV’s & Associates (pre tax) £15-20m

• Net finance costs c.£40m

Revenue and profit outlook

Revenue MarginUnderlying revenue

growthMargin

B2B

Risk Management Solutions £187 m 14% Low-single digit % Stable

dmg information £430 m 17% Around 10% Mid-teens %

dmg events £95 m 21% Mid-single digit % ¹ Around 25%

Euromoney £403 m 26%

Consumer

dmg media £731 m 13% Stable ² Around 10%

See Euromoney statement

FY 2015 Full Year Outlook FY 2016

© 2016 DMGT | 33

3 Business UpdateMartin Morgan, Chief Executive

© 2016 DMGT | 34

Fostering innovation to deliver organic growth

Maintaining rigorous and active portfolio management

Driving international growth

Using technology to enable growth

Attracting and developing entrepreneurial talent

Investing for growth – consistent strategyOur strategic priorities

© 2016 DMGT | 35

• Continued balanced and flexible approach to capital allocation

• RMS: roll-out of HD models and RMS(one)

• dmgi: organic growth supplemented by selected acquisitions

• dmg events: performance of major shows, geo-cloning, organic spin-

offs and acquisitions

• Euromoney: execution of new strategy

• dmg media: grow MailOnline, particularly internationally; extract

benefits from growing newspaper market share

Execution priorities for 2016

© 2016 DMGT | 36

Investment preferences

NewsectorAdjacentBolt-onOrganic

© 2016 DMGT | 37

Portfolio management in FY 2016 to date

First half FY 2016

Acquisitions £20m Disposals £112m

Local World

Wowcher

ETSOS PAR Framework

Exhibition Management Services Daily Mail Australia

Second half FY 2016 to date

Acquisitions

Codean

Disposals

Gulf Publishing

© 2016 DMGT | 38

Large pipeline of models

© 2016 DMGT | 39

Cyber

Global Marine

Cargo / v.16

European Flood HD

New Zealand Earthquake HD

Japan Typhoon HDUS + Europe

Flood Maps

Model and data product development

© 2016 DMGT | 40

Platform and software

RMS(one) products and solutions on track to be released in stages

© 2016 DMGT | 41

• Property information

• Hobsons: benefiting from growing adoption of Naviance

and new services for higher education (e.g. Starfish,

PAR Framework)

• Genscape: gaining scale from entering new segments

(e.g. solar, Locus Energy) and adding analytics

(e.g. Energytics)

Continued organic growth enhanced by well performing acquisitions

• Trepp: new market segments (e.g. TreppPort & Codean)

• Xceligent: ongoing organic investment in US build-out

• dmgi land & property Europe: product innovation

across the property value chain (e.g. ETSOS)

© 2016 DMGT | 42

Global Petroleum Show, Calgary

• Good performance of market-leading major

events (ADIPEC, Big 5, Gastech)

• Managing oil-related headwinds for energy

shows – benefits of portfolio diversity

• Successful geo-cloning and organic spin-off

strategy (e.g. Gas Indonesia, HVAC R Saudi,

Windows & Doors Dubai)

• Bolt-on acquisitions (e.g. Exhibition

Management Services)

© 2016 DMGT | 43

• Difficult market conditions continue in some

sectors

• New strategy firmly in place – early

encouraging signs

• Three pillars of strategy

• Investing around big themes

• Transforming the operating model

• Actively managing the portfolio

• Good long-term growth opportunities

© 2016 DMGT | 44

Strategic approach based on business positioning within each quadrant

Cycle +

+

-

-

Str

uc

ture Invest

Use the

time

wisely

Disinvest

Batten

down the

hatches

© 2016 DMGT | 45

• Strong market position of Mail brands increasingly important

• Circulation volumes resilient following Daily Mail cover price rise

H1

‘07H1

‘10

H1

‘09

H1

‘08

H1

‘13H1

‘12

H1

‘11H1

‘15

H1

‘14

H1

‘16H2

‘07H2

‘11

H2

‘10H2

‘09

H2

‘08

H2

‘14

H2

‘13

H2

‘12H2

‘15

Daily Mail circulation revenues and volumes: H1 FY’07 to H1 FY’16

0

20

40

60

80

100

120

140

0

20

40

60

80

100

Circ

ula

tio

n R

ev

en

ue

s

6 m

on

ths

(£M

)

Av

era

ge

da

ily

vo

lum

e

[Ba

se H

1’0

7 =

10

0]

© 2016 DMGT | 46

5%8% 9%

13%15%

19%22%

H1 FY11 H2 FY11 H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16

27% 27%

33%36%

MailOnline revenues as a % of Mail businesses’ advertising revenues

• Growing significance of digital advertising for Mail businesses

• Fostering international growth opportunities for MailOnline

• Continued balance of investment and cost efficiencies

© 2016 DMGT | 47

Well positioned for long-term growth

• Clear priorities for 2016 given challenging market conditions

• First Half results impacted by weak advertising market

• Investing to deliver medium to long-term growth

• Balanced capital allocation strategy

• Financial flexibility to drive shareholder returns

© 2016 DMGT | 48

4 Questions

© 2016 DMGT | 49

5 Appendix

© 2016 DMGT | 50

Certain statements in this presentation are forward

looking statements. By their nature, forward looking

statements involve a number of risks, uncertainties or

assumptions that could cause actual results or events to

differ materially from those expressed or implied by the

forward looking statements. These risks, uncertainties or

assumptions could adversely affect the outcome and

financial effects of the plans and events described

herein. Forward looking statements contained in this

presentation regarding past trends or activities should

not be taken as representation that such trends or

activities will continue in the future. You should not

place undue reliance on forward looking statements,

which apply only as of the date of this presentation.

This presentation does not constitute or form part of any

offer or invitation to sell, or any solicitation of any offer to

purchase any shares in the Company, nor shall it or any

part of it or the fact of its distribution form the basis of, or

be relied on in connection with, any contract or

commitment or investment decisions relating thereto,

nor does it constitute a recommendation regarding the

shares of the Company. Past performance cannot be

relied upon as a guide to future performance.

Important Notice

© 2016 DMGT | 51

Operating profit is stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, pension finance charges, premiums on bond redemptions and amortisation of intangible assets arising on business combinations. These adjusted results, including revenue and operating profit, are for total operations, including those treated as discontinued, namely dmg media’s digital recruitment business, Evenbase.

Percentages are calculated on actual numbers to one decimal place.

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

Underlying revenue or profit is revenue or profit on a like-for-like basis, adjusted for constant exchange rates, disposals, closures, non-annual events occurring in the current and prior year and acquisitions. For dmg information, underlying growth includes the year-on-year organic growth from acquisitions and excludes disposals. For dmg events, the comparisons are between events held in the year and the same events held the previous time. For Euromoney, disposals are excluded and a biennial event that took place during the period is also excluded. Euromoney’s underlying profit excludes the benefit in FY2015 of the release of the accrual made the previous year in respect of its CAP incentive plan. For dmg media, underlying comparisons exclude disposals, Wowcher and Evenbase, and include the year-on-year organic growth from acquisitions. Underlying revenues only include the profit but not the gross-up, equivalent to the cost of sales, from low margin newsprint resale activities.

Notes

© 2016 DMGT | 52*Minority investment

Portfolio management ensuring long term growthAcquisitions:

Broadbean Calnea OnGeo Intelliworks First Search SearchFlow / DIIG Starfish ETSOS

Metropix Arete BuildFax PrepMe Beat the GMAT Energytics Locus Energy PAR Framework

Globrix Foresight Analytics Spring Rock Edumate SiteCompli PetrotranzExhibition Management

Services

Ned Davis Research Global GrainNational Transcript

CenterXceligent Energy Fundamentals Daily Mail Australia

Jobrapido Vessel Tracker Quartz Coatings Digital H2O

Praedicat * Insider Publishing Infrastructure Journal Commodity Vectors

Xceligent *Centre for Investor

EducationMining Indaba Empower

Bolt-on TTI / Vanguard Petrotranz * Gulf Glass & GulfSol

AdjacentHSBC's Quantitative

TechniquesiProf * Elite Daily

Cougar Software* Skymet * WellAware *

Ochresoft * Liases Foras *

Mercatus * Funcent *

Propstack *

CompStak *

Dealogic *

Estimize *

Zanbato *

Disposals:

HY 2016

To 31 Mar 2016 -

£20M

HY 2016

To 31 Mar 2016 -

£112M

FY 2015 - £123M

FY 2009 – £28M FY 2010 – £81M FY 2011 – £125M FY 2012 – £117M FY 2013 - £88M FY 2014 - £253M FY 2015 - £143M

FY 2009 – £8M FY 2010 – £37M FY 2011 – £94M FY 2012 – £75M FY 2013 - £93M FY 2014 - £174M

© 2016 DMGT | 53

FY 2016 Interim dividend of 6.7 pence, up 3%

Dividend growth continues20 year CAGR: 8%

0

2

4

6

8

10

12

14

16

18

20

22

Dividend Inflation

4.5p

21.4p

7.7p

Pe

nc

e

1995 2015

© 2016 DMGT | 54

M&A adjustments are for disposals, including dmg media’s Wowcher and Evenbase businesses, and acquisitions. The underlying results of dmg information,

dmg events and dmg media include the post-acquisition organic growth from acquired entities.

‘Other’ includes adjustments for the timing of shows at dmg events and a biennial event at Euromoney, as well as the gross-up, equivalent to the cost of

sales, on the low margin resale of newsprint activities.

Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.

Underlying analysisRevenues

HY 2016

£ million % Underlying M&A Other Actual Underlying M&A Exchange Other Actual

B2B

RMS +1% 96 - - 96 96 - 4 - 91

dmg information +6% 230 - - 230 217 12 4 - 201

dmg events +5% 72 - - 72 69 (8) 2 16 58

Euromoney (6%) 190 - (5) 194 203 (2) 7 - 198

+1% 588 - (5) 592 584 3 17 16 548

Consumer

dmg media (3%) 331 (4) (23) 358 342 (13) - (19) 374

Total revenues (1%) 919 (4) (27) 950 926 (11) 18 (3) 922

HY 2015

© 2016 DMGT | 55

£ million % Underlying M&A Other Actual Underlying M&A Exchange Other Actual

B2B

RMS +47% 19 - - 19 13 - - - 13

dmg information +1% 25 - - 25 25 (2) - - 27

dmg events (2%) 24 - (1) 25 25 (1) - 7 17

Euromoney (15%) 45 - (2) 47 52 (1) 3 (3) 53

(2%) 113 - (3) 116 115 (4) 4 5 110

Consumer

dmg media (29%) 38 (2) - 39 53 (4) - - 57

Corporate costs (6%) (18) - - (18) (17) - - - (17)

Total operating profit (12%) 133 (2) (3) 138 151 (8) 4 5 150

HY 2016 HY 2015

B2B and Consumer underlying figures are stated pre the allocation of Corporate costs. Including Corporate costs, the underlying growth rates for B2B and

Consumer were –3% and -33% respectively.

‘Other’ includes adjustments for the timing of shows at dmg events and a biennial event at Euromoney and an adjustment to exclude the benefit in FY

2015 from the release of previously accrued CAP costs at Euromoney.

Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.

Underlying analysisAdjusted operating profit

© 2016 DMGT | 56

B2B & Consumer diversity

* Profits include Corporate costs, allocated on a revenue basis.

£ million Share of total HY 2016 HY 2015 Change Underlying

Revenues

B2B 62% 592 548 +8% +1%

Consumer 38% 358 374 (4%) (3%)

100% 950 922 +3% (1%)

Profits*

B2B 76% 105 100 +5% (3%)

Consumer 24% 33 50 (34%) (33%)

100% 138 150 (8%) (12%)

© 2016 DMGT | 57

£ million Share of total HY 2016 HY 2015 Change Underlying

Revenues

UK 47% 450 475 (5%) (6%)

North America 31% 298 263 +13% +7%

Rest of World 21% 202 184 +10% (0%)

100% 950 922 +3% (1%)

Profits

UK 46% 64 73 (13%) (19%)

North America 33% 45 49 (8%) (8%)

Rest of World 21% 29 28 +5% (1%)

100% 138 150 (8%) (12%)

Geographical diversity

Revenues by destination and profits by source

Rest of World revenues, 21%: 10% Rest of Europe, 1% Australia, 10% Asia, Middle East, Caribbean, Africa

and Latin America

Share of revenues shown to nearest whole percentage. On slide 8, UK’s 47.4% is shown as 48%.

© 2016 DMGT | 58

This table shows the revenues based on the location of the client receiving the goods or services

Geographical analysisRevenues by destination

£ million RMS dmgi dmge Euromoney dmg media Total

Revenue

UK 19 77 5 25 324 450

North America 60 129 5 87 17 298

Rest of World 18 24 62 82 17 202

96 230 72 194 358 950

© 2016 DMGT | 59

This table shows the revenues based on the location of the DMGT company that is providing the goods or services to the clients

Geographical analysisRevenues by source

£ million RMS dmgi dmge Euromoney dmg media Total

Revenue

UK - 76 18 76 349 520

North America 94 132 0 95 5 326

Rest of World 3 22 53 23 4 104

96 230 72 194 358 950

© 2016 DMGT | 60

£ million % of total HY 2016 HY 2015 Change Underlying

Advertising - print 14% 128 148 (13%) (13%)

- digital 7% 68 65 +4% +21%

Circulation 16% 153 157 (3%) (3%)

Subscriptions 31% 297 273 +9% +2%

Events, conferences and training 14% 135 124 +9% (4%)

Transactions & other 18% 169 155 +9% +4%

Total Revenue 100% 950 922 +3% (1%)

(4%)

- Reported digital advertising growth adversely impacted by disposal of Wowcher

- Reported subscriptions and events growth benefited from the stronger US dollar

- Reported events growth benefited by the occurrence of Gastech

Revenue dynamicsWeak print advertising

© 2016 DMGT | 61

Category analysisRevenues by type

Revenues £ million RMS dmgi dmge Euromoney dmg media Total

Advertising - print - - - 15 113 128

- digital - 7 - 3 57 68

Circulation - - - - 153 153

Subscriptions 96 92 - 109 - 297

Events, conferences

and training- - 72 63 - 135

Transactions & other - 131 - 4 35 169

96 230 72 194 358 950

© 2016 DMGT | 62

Advertising revenuesDigital increase more than offset by print decline

£ million % of total HY 2016 HY 2015 Change Underlying

UK National newspapers 58% 113 131 (13%) (13%)

Euromoney 8% 15 16 (9%) (14%)

Other 0% - 1 (100%)

Total print 65% 128 148 (13%) (13%)

News websites (MailOnline & Metro) 23% 44 36 +24% +20%

Consumer websites 7% 13 20 (36%) +58%

Euromoney 2% 3 4 (6%) (8%)

Other 4% 7 6 +29% +24%

Total digital 35% 68 65 +4% +21%

Total advertising 100% 196 213 (8%) (4%)

© 2016 DMGT | 63

Adjusting itemsReconciliation from statutory PBT to adjusted PBT

¹ The £128m profit on disposals in HY 2015 shown on slide 27 includes the 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.


Statutory Profit Before Tax - continuing operations 195 127

Add: Statutory PBT - discontinued operations (note 20) - 1

Add: Profit on disposal of discontinued operations (note 20) ¹ - 49

Statutory PBT including discontinued operations 195 177

Reverse: Pre-tax exceptional credit (slide 27) (68) (76)

Add back: Premium on bond redemptions (slide 25) - 40

Remove: IAS19(Revised) finance costs (slide 25) 2 4

Adjusted Profit Before Tax 129 146

© 2016 DMGT | 64

Balance Sheet£ million 31 Mar'16 31 Mar'15 Movement

Goodwill & Intangible assets 1,376 1,273 103

Other non-current assets 566 608 (42)

Current assets (excl. cash) 369 381 (12)

Net debt (719) (754) 35

Pension deficit (85) (210) 125

Other liabilities (880) (887) 7

Net assets 627 412 216

Equity attributable to owners of DMGT 466 262 204

Non-controlling interests 162 150 12

Shareholders' equity 627 412 216

© 2016 DMGT | 65

Pension deficit

£ million Obligations Assets Deficit

As at 30 September 2015 (2,437) 2,278 (159)

Benefit payments 44 (44) -

Interest (cost) / income (44) 42 (2)

Company contributions - 37 37

Service & administration costs (2) - (2)

Actuarial movement (43) 84 42

As at 31 March 2016 (2,483) 2,397 (85)

© 2016 DMGT | 66

Net debtStrong funding position

Bonds Coupon £m

December 2018 5.75% 213

April 2021 10.0% 10

June 2027 6.375% 200

423

Derivatives (1)

Facilities 315

Other debt 3

Less: Cash in hand (21)

Net Debt 719

Bank facilities Facility Drawings Undrawn

Expiring March 2019 602 (315) 287

© 2016 DMGT | 67

• Funding plan agreed in Feb’14: c.£34m p.a. to 2020, c.£28m p.a. to 2022 and £23m p.a. to 2026, including £5m p.a. to 2022 on

‘Offset recovery payments’. Payments in excess of the £34m p.a. recovery plan amounts can be carried forward against

future ‘Offset recovery payments’. Contributions cease once actuary agrees schemes are not in deficit.• Actuarial valuation as at 31 March 2016 is currently in progress.

• IAS19 deficit at 31 March 2016 = £85m (£159m at 30 September 2015)

• Future payments in excess of £29m p.a. of minimum recovery plan payments to 2020 are dependent on share buy-backs, M&A affecting

schemes or pensions liability management, plus other minor contributions. The share buy-back and other payments in excess of £5m p.a. in

FY 2014 and FY 2015 can be carried forward such that, in the absence of further share buy-backs, only the £29m minimum recovery plan

payments would be required in FY 2017.

• Additional future payments equivalent to 20% of share buy-backs are required.

Pension deficit funding plan

0

10

20

30

40

50

60

70

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

Northcliffe disposal

Share buy-back /

Other

Minimum recovery

payments

£ m

illio

ns

£34m £34m £34m £34m£31m

£64m

£Xm£5m

£34m

Total

Actual

Payments

Total

Recovery

Plan

Amounts

£29m

£61m

£12m

£29m £29m £29m

£19m

£8m

£13m

£17m

£50m £48m

£19m£33m

H1'16

£4m

© 2016 DMGT | 68

A Annual

18M 18 Months

B Biennial

Key

Gastech in FY 2016

Event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Gastech B 18M 18M 18M 18M

Big 5 Dubai A A A A A A A A

ADIPEC B A A A A A A

Global Petroleum Show B B A (smaller) A (larger) A (smaller) A (larger) A (smaller)

FY 2014 FY 2015FY 2012 FY 2013 FY 2016 FY 2017 FY 2018 FY 2019

FY12 FY13 FY14 FY15

Revenues £m £m £m £m

Total for major events 23 39 53 44

Other events 48 48 47 50

71 87 100 95

Disposals:

Evanta 18 - - -

Total including disposals 89 87 100 95

© 2016 DMGT | 69

Revenue performance by business quadrant

Cycle +

+

-

-

Str

uc

ture

Invest

Use the

time

wisely

Disinvest

Batten

down the

hatches

Revenue share:

FY15 59% → H116 64%

Underlying growth rate: FY15 +4% → H116 +2%

Revenue share: FY15 9% → H116 6%



Underlying growth rate: FY15 (5)% → H116 (5)%



© 2016 DMGT | 70

Percentages show underlying variances. The digital and total percentages exclude revenues from Evenbase, which has been disposed of.

‘Newspaper websites’ includes revenues from the Metro app for tablets and mobile devices, these are excluded from MailOnline’s revenues.

Underlying advertising revenue trends

£ million % Q1 Q2 Half Year

Newspapers 68% 59 54 113

% v last year (12%) (15%) (13%)

Newspaper websites 28% 23 24 47

% v last year +27% +13% +19%

Subtotal 96% 82 77 160

% v last year (4%) (8%) (6%)

Digital businesses 4% 4 3 7

% v last year +73% +45% +60%

Total 100% 86 80 166

% v last year (2%) (7%) (4%)

© 2016 DMGT | 71

% of total Q1 v PY Q2 v PY HY16 v PY

Retail 26% (12%) (7%) (10%)

Travel 11% +0% (15%) (10%)

Entertainment 11% +22% (11%) +5%

Finance 7% (8%) (24%) (17%)

Telecoms 5% (16%) (31%) (23%)

Motors 3% (7%) (49%) (32%)

Mail Order 3% +8% (4%) +2%

Others 34% +0% +8% +3%

Total 100% (4%) (8%) (6%)

UK newspaper titles, including companion websites. Excludes other digital businesses such as Elite Daily.

Advertising revenue quarterly trends

© 2016 DMGT | 72

Reporting calendarReporting dates for FY 2016

Release Date

Q3 Trading update 21 July 2016

Pre-close trading update 29 September 2016

Preliminary full year results 1 December 2016

© 2016 DMGT | 73

Sep-95

Mar-96

Sep-96

Mar-97

Sep-97

Mar-98

Sep-98

Mar-99

Sep-99

Mar-00

Sep-00

Mar-01

Sep-01

Mar-02

Sep-02

Mar-03

Sep-03

Mar-04

Sep-04

Mar-05

Sep-05

Mar-06

Sep-06

Mar-07

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

Mar-15

Sep-15

Mar-16

DMGT ‘A’ Shares

FTSE ‘All Share’

Share price performanceThe 20 year view – excluding dividend reinvestment

© 2016 DMGT | 74

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

http://www.dmgt.com/

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