UBM Overview PresentationDavid Levin, CEORobert Gray, CFOAndrew Crow, Deputy CFOPeter Wrankmore, Head of Treasury
November 2009
2
Agenda
• Business overview and strategy
• Recent performance and outlook
• Capital and credit metrics
3
Business Overview and Strategy
4
• B2B communities– Events – exhibition led trade shows– Data, services & online– Print - magazines
• Targeting, Distribution & Monitoring
UBM: A global leader in B2B information and services
£291.8m
£225.3m
£215.6m
£154.3m
£82.2m
£31.1m
£23.9m
£43.3m
Targeting,Distribution& Monitoring
Print - Magazines
Data, services& online
Events
2008 Revenues 2008 EBIT 1
Market Cap (5 Nov ’09)
Net debt (30 Jun ’09)
Credit rating
£1,162m
£228.8m
Baa3 (stable)/BBB- (positive)
1 Excluding corporate operations
5
UBM’s strategy: focused, consistent, transparent• Focus on high quality revenue streams from specialist
communities:– Events– Data– Targeting, Distribution & Monitoring
• Target faster growing economies
• Proactively manage reduction of print portfolio
• Grow through a combination of organic expansion and acquisitions
6
Leading B2B evolution
22%
6%
56%
16%
24%
15%
46%
15%
29%
18%
36%
17%
30%
25%
27%
18%
33%
26%
24%
17%
32%
29%
20%
19%
2004 2005 2006 2007 2008 H1 2009Revenue
0
20
40
60
80
100%
Targeting,Distribution& Monitoring
Print -Magazines
Data, Services& Online
Events
2005-2008: Disposals £780m, Acquisitions £415m
Revenue composition:
7
Geographic growth orientation
6%8%
23%
17%
46%
6%
10%
20%
17%
48%
6%
12%
22%
23%
37%
4%
15%
16%
19%
46%
Revenue 2005
Revenue2008
Profit2005
Profit2008
£633.7m £887.0m £127.5m £180.5m
0
20
40
60
80
100%
US
ContinentalEurope
UKBIC Rest of world
1 Excluding corporate operations
1 1
8
Disciplined and transparent approach to mergers and acquisitions• £780m of disposals and £415m in acquisitions
completed 2005-2008
• 61 bolt-on acquisitions in adjacent businesses/geographies
• Four additional acquisitions completed 2009 YTD
• Key financial criterion: post-tax ROI exceeds 8% in first full year of ownership
• Cumulative pre-tax return 2005-2008 >12.5%*
* See appendix for definitions
9
Recent Performance and Outlook
10
Headline* financial results
1.40.9Net debt/EBITDA228.8181.1260.6157.5Net debt
H1Full Year
170.0
3.9
166.1
801.6
2007
171.5
(2.0)
173.5
887.0
2008
91.5
1.390.2
445.62008
1.5Interest and other finance income (£m)
79.8Adjusted PBT* (£m)
78.3Adjusted operating profit* (£m)435.0Revenue (£m)
2009
* See appendix for definitions
11
Segmental analysis Six months to 30 June
80.1
23.0
57.1
3.3
16.0
37.8
£m
2009
Adjusted Operating Profit*Revenue
2008120082009
(19.8)71.2(5.6)370.8350.1Total B2B Communities
14.420.113.574.884.9Targeting, Distribution & Monitoring
(76.1)13.8(22.3)111.086.3Print – Magazines
(12.3)
(8.6)
(5.3)
%
445.6
111.4
148.4
£m £m%£m
91.3
17.5
39.9(7.5)137.2Events
13.6126.6Data, Services & Online
435.0 (2.4)Total2
1 As restated 2 Excluding corporate operations
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B2B Communities: Serving business communities with integrated media and services
WebsitesPrint
Social Networking
Business Information
Conferences
Professional Education
Workflow Solutions
Careers Fairs
Tradeshows
Professional CommunityCommunity Awards
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Strength in key B2B verticals
Diversified by industry
2008 Revenue
2%2% 5%
6%
6%
6%
9%
9%
10%
17%
25%
3%Forest products & Paper
Games
IT Sales Channel
Fashion (Jewellery, Leather)
Ingredients (Food & Pharma)
Electronics & Semiconductor
Trade & Transportation
Built Environment
Lifestyle
Corporate IT
Health / Medical
Other
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Events: Our key sector in B2B communities
(5.3)
(7.5)
Change %
28.226.927.6Operating Margin (%)
82.2
291.8
2008
39.937.8Operating Profit (£m)
148.4137.2Turnover (£m)
2008 1H2009 1H
45.5% of 2008 group profit
15
Global exhibitions: a $29 billion market
1.7
0.7
1.3
0.8
1.3
0.40.2
5.6
13
France UKSpain ItalyRussia ChinaBrazil InidaOther USGermany
Exhibitions market by geography
Source: AMR International, 2009
Exhibitions market by operator
%
4.13.1
2.11.8
1.51.5
1.41.41.31.21.01.00.90.90.90.90.7
71.6
0.70.5
UBM (1.6%)
Reed Exhibitions (UK) GL Events (France)Messe Frankfurt (Germany) Messe Düsseldorf (Germany)UBM (UK) Fiera Milano (Italy)Nielsen Business media (US) Deutsche Messe (Germany)Messe Müchen (Germany) EMAP (UK)Comexposium (France) DMG World media (UK)Koelnmesse (Germany) Advanstar (US)HKTDC (Hong Kong) Hanley Wood (US)Ifema (Spain) BolognaFiere (Italy)Fira Barcelona (Spain) ITE (UK)Other
%
16
Strong brands supported by UBM’s global platform
17
Predictability begins with on-site re-booking
CPhI 2009 Stand Revenue Bookings
70%
80%
90%
100%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
18
Events: Forward orders for H2 2009 major events up 5.9%
1 2008 information provided for these shows2 Biennial, 2007 information provided for these shows
Exhibitor paid eventsExhibitor & attendee paid events
Location M onth
M ost Recent Edition
No of Attendees
H1 2009 EventsJune Jewellery & Gem Fair Hong Kong June 22 16,685CPhI China Shanghai June 8 26,863APLF – Fashion Spring Materials + Access Spring Hong Kong March 25 29,533International Beauty & Cosmetic Import-Export Expo Guangzhou March 30 20,165Game Developer Conference San Francisco March 22 17,393Interop Las Vegas April 23 10,698Seatrade Cruise Shipping Convention Miami March 25 10,154Voicecon Spring Orlando March 6 4,415ESC (West) San Jose April 20 8,001Informex USA San Francisco February 25 3,644Ifsec Birmingham January 36 14,959Interiors/Furniture Show London February 19 25,618International Confex London February 27 11,071
H2 2009 Events 1
September Jewellery & Gem Fair Hong Kong September 26 37,276Marintec 2 Shanghai December 14 35,309Furniture China Shanghai September 14 48,915Cosmoprof China November 13 39,467Health Ingredients Japan Tokyo October 11 19,992Health & Beauty America New York September 15 16,207Black Hat USA Las Vegas July 12 4,277CPhI Worldw ide Frankfurt October 19 23,454FIE 2 Frankfurt November 18 17,773
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Data, Services & Online
(8.6)
13.6
Change %
13.815.712.6Operating Margin (%)
31.1
225.3
2008
17.516.0Operating Profit (£m)
111.4126.6Turnover (£m)
2008 H12009 H117.2% of 2008
group profit
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Data, Services & Online
Data
Online
Services
Key products:Informationweek.comChannelweb.comInternet EvolutionGamasutra
Key products:ICMIHDIPyramid Research
Key products:VIDALRISIOAGPiersABITechInsights
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Print - Magazines
(76.1)
(22.3)
Change %
12.4
13.8
111.0
2008 H1
11.1
23.9
215.6
2008
3.8Operating Margin (%)
3.3Operating Profit (£m)
86.3Turnover (£m)
2009 H113.2% of ‘08group profit
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Print - Magazines: Active portfolio management
Publ
icatio
ns
Reve
nue
Ope
ratin
g Pr
ofit
Publ
icatio
ns
Reve
nue
Ope
ratin
g Pr
ofit
Publ
icatio
ns
Reve
nue
Ope
ratin
g Pr
ofit
Publ
icatio
ns
2006 2007 2008 H1 2009
182£268m
£22m
155£231m
£28m
140
£216m
£24m
125
0
50
100
150
200
0
50
100
150
200
250
300
£mNumber of publications
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Targeting, Distribution & Monitoring
14.4
13.5
Change %
28.126.927.1Operating Margin (%)
43.3
154.3
2008
20.123.0Operating Profit (£m)
74.884.9Turnover (£m)
2008 H12009 H1
24% of 2008
group profit
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•Coding•Formatting•Delivery into new systems•Credibility•Protection against hoax sources•Worldwide network•Simultaneity
TextMandatory newsPublicity news
MultimediaPhotosVideo
MNRs/Flex Release
Traditional MediaTrades
BroadcastAP / Reuters / Bloomberg
Social MediaBloggersYouTube
prnewswire.com social media tools
Databases & PortalsFactiva
Lexis-NexisYahoo
Financial NetworksThomson
BloombergReuters
AggregatorsAP
MarketwatchReuters
Corporate
Agencies
Government
Others
SOURCES CONTENT PROCESSING RECIPIENTS
Monitoring & Measurement Services
MEDIAtlasProfNet
SEO
PRN: Business Model
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Press release demand is broad based
20%
28%
3%
1%
7%8%
5%3%5%
20%
New product/contractsAwardsLicencing
Personnelannouncements
Surveys & pollsTrade show newsOther general businessHealthcare/environmentCultural & publicRegulatory requirement
PR Newswire’s US Press Releases by Category (volume)
Source: Factiva/UBM
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PRN: Investment in higher value –added products
Text only(per page)
Text and photo Multimedianews release
MEDIAtlas Strategicplacements
MediaRooom/IR Room
$680$1,375
$1,750$2,295
$8,495 $8,495
0
2,000
4,000
6,000
8,000
10,000
$
Indicative pricing for products
27
Capital and Credit Metrics
2828
0
50
100
150
200
250
300
350
400
450
2010 2011 2012 Total
£'m
CAD$26m Bilateral Loan (Amortising)
€53.1m Bilateral Loan Facility
£325m Revolving Credit Facility
£75m Floating Rate Reset Bond
Liquidity and Debt Profile – 30 June 2009
1 Minimum maturity
050
100150200250300350400450
Debt Liquidity
£'m
Undrawn FacilitiesCashNet DebtTotal Debt
Debt
Debt and Liquidity Debt maturity profile
1
1
29
Consistent cash conversion
Continuing businesses
100.1
173.6
2.2
(15.0)
186.4
12.9
173.5
2008
100.2
166.5
2.8
(12.6)
176.3
10.2
166.1
2007
90.8
81.9
(7.4)
(6.5)
95.8
5.6
90.2
H1 08
84.9EBITDA
113.8
89.1
10.9
(6.7)
6.6
78.3
H1 09
Depreciation
Cash conversion (%)
Operating cash inflow
Working capital/other
Capex
Adjusted operating profit*
£m
30
Cash flow
8.610.518.75.6Less: Tax
74.871.4150.7162.1
(275.3)
250.6
69.5
44.8
85.1
129.9
32.2
(1.2)
166.5
2007
(13.7)
61.5
7.3
55.1
48.1
103.2
47.5
4.2
173.6
2008
(15.8)
43.9
(1.0)
27.1
27.3
54.4
17.0
0
81.9
H1 08
53.6Discretionary cash
21.2Less: Restructuring payments
43.8Free cash flow
9.8Less: Net acquisitions
(2.5)
46.5
(0.2)
5.7
89.1
H1 09
Less: Net interest
Cash retained
Less: Dividends1
Less: Net share redemptions
Operating cash flow
£m
1 includes special dividend
31
Key investment considerations
• Leading positions and strong growth potential in key businesses
• Diversified revenues by both business and geography• Expanding geographic presence – Brazil, India and
China• Opportunities to make vertical acquisitions in a
fragmented market• Strong liquidity; conservative financial profile• Highly regarded management team with proven
execution
• Target: maintenance of investment grade credit
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Credit Rating Views
Moody’s: Baa3 Stable Outlook S&P: BBB- Positive OutlookStrengths: “Established market positions in news distribution, trade shows, and professional media.Diversified product and service portfolio across a range of media and information services businesses.Established track record of strong cash conversion”
Positive Outlook: “The positive outlook reflects the potential for an upgrade in the first quarter of 2010 if, despite the difficult economic climate, UBM is able to demonstrate resilient operating performance and maintain a prudent balance sheet, resulting in adjusted FFO to debt in excess of 35% on a sustainable basis.”
Strengths: “… acknowledge the company’s solid positions in a range of business-to-business communications markets…… PR Newswire US recovered market share in H1 2009…… The company is now much less dependent on print products”
Stable Outlook: “…cost management steps taken by the company will help in shielding profits… bolt-on acquisitions will continue to add incremental revenue growth… UBM will continue to manage its discretionary outflows in line with its revised intention stated publicly of maintaining a prudent level of debt in 2009 and beyond”
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Appendix
34
Definitions of Headline Indicators
• Headline and underlying measures are those which UBM considers to be the most meaningful and prudent measure of performance:
– headline results include foreign exchange gains
• Adjusted operating profit:– Before amortisation of intangible assets arising on acquisitions,
exceptional items and share of taxation on profit from joint ventures and associates
• Adjusted profit before tax and adjusted EPS: – Before amortisation of intangible assets arising on acquisitions,
exceptional items, share of taxation on profit from joint ventures and associates, net financing cost - other. Adjusted EPS also excludes deferred tax on the amortisation of intangible assets
• Reported profit before tax:– Before share of taxation of joint ventures and associates
On slides where “Headline” and “*” are used.