Intelligent Media

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Intelligent Media
United Business Media
2
2003 Highlights

• Strong profit growth
• Effective cost management
• Improving yields and revenue
• Successful investment programme
• Outlook positive

3
Financial Results
2003
2002
Change
Underlying
12 months to 3112


Turnover (m) Profit before tax (m) EPS
(p) Operating margin () Dividend per share
(p) Net cash (m)
746.7 103.3 24.0 13.3 9.0 46.5

793.4 72.9 16.5 8.2 7.0 93.5
(5.9) 41.7 45.5 62.7 28.6 (50.3)
(3.0)
53.1
3
before amortisation of intangibles and goodwill
and prior year exceptionals
4
Financial Results Progress accelerated in H2
2003 H2
2002 H2
Change
Underlying


4.3
Turnover (m) Operating profit (m) Profit
before tax (m) EPS (p) Operating margin
()
402.7 57.4 57.8 13.3 14.3
380.6 27.5 32.2 7.7 7.2
5.8 108.7 79.5 72.7 97.3
143.8
before amortisation of intangibles and goodwill
and prior year exceptionals
5
The Last Three YearsTransforming the business
model

• Business fundamentally re-engineered
• Reduced 2000 fixed cost base by over 30 per cent
• Strengthened market position
• Yields defended
• Increased organic investment
• Strategic, well priced, acquisitions
• Margin targets
• 2003 10 per cent target secured
• Medium term target of 15 per cent
• Maximised operating cash inflow
• Balance sheet strength

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2003 Recovery Underway

• Publishing and exhibitions
• Underlying healthcare revenue up by 31 per cent
• H2 continuing tech revenue recovers to 2002
  levels
• Asia post-SARS H2 ahead of 2002
• CMPi achieves 19 per cent margin with significant
  cost savings
• UAP delivers 10 per cent profit growth

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2003 Recovery Underway

• News Distribution
• US wire volumes recovering towards year end
• Yields improving
• Significant restructuring and investment costs
• Market Research
• Syndicated and continuous strong
• Healthcare recovering
• Major restructuring to improve margin

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Trading OutlookH2 trends continuing

• Publications and exhibitions
• Improving tech climate Growth in healthcare
• Asia returns to pre-SARS volumes UK business
  growing margins
• News distribution
• Volumes and yields improving
• Eliminating losses in Europe
• Market research
• Growth in year end order book
• Restructuring to improve margin and revenue
  growth
• Acquisitions delivering

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FINANCIAL REVIEW
10
Financial Results
Change
2003
2002
12 months to 3112


Turnover (m) Operating profit (m) Net
Interest (m) Other finance expense (FRS17) PBT
(m) Taxation (m) EPS (p) Dividend per share
(p) Average rate
746.7 99.4 9.4 (5.5) 103.3 (22.7) 24.0 9.
0 1.64
793.4 64.9 10.1 (2.1) 72.9 (16.0) 16.5 7.0 1.51
(5.9) 53.2 41.7 41.5 45.5 28.6 8.6
before amortisation of intangibles and goodwill
and prior year exceptionals
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Operating Cash Conversion
2002 m
2003 m
12 months to 3112
Operating profit (before goodwill) Depreciation Ca
pex Working capital/other Operating cash
inflow Cash conversion
64.9 23.2 (10.9) 13.8 91.0 140
99.4 25.3 (6.9) 0.1 117.9 119
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Cashflow
2002 m
2003 m
12 months to 3112
Operating cash inflow Dividends paid Tax
received Net interest received Acquisitions and
investments, net of disposals Payments relating
to property and restructuring Foreign
exchange Ordinary and B share repurchase Other Mo
vement in cash
117.9 (26.3) 8.4 2.3 (127.8) (23.1) 13.0 (2.6) (8
.8) (47.0)
91.0 (14.4) 15.3 4.4 (10.4) (35.1) 24.0 (7.4) (23
.2) 44.2
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Breakdown of Net Cash and Interest
Interest m
311203 m

9.5 (1.6) 7.5 (14.8) (0.0) 8.8 (5.5) 3.9
Cash Debt Cash (in ) Debt (in
) Other Net Cash Loans to five Other
financial expenses - FRS17 PL Interest
191.0 (14.9) 415.5 (526.9) (18.2) 46.5 160.3




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Segmental Analysis
Group Turnover Group Turnover Group Turnover Group Turnover Group Turnover Operating Profit Operating Profit Operating Profit
Total Growth on Prior Year Growth on Prior Year Growth on Prior Year Growth on Prior Year Total Growth Growth
m Reported Currency Acquisition Underlying m Reported Underlying
CMP Media 210.5 (11.6) (7.5) 1.0 (5.4) 14.8 317.6 384.4
CMP Asia 44.4 (13.1) (7.4) 0.0 9.9 12.6 (8.0) 20.3
CMPi 135.0 5.8 (0.5) 13.9 (9.6) 25.3 150.5 130.1
UAP 58.1 0.0 0.0 0.5 (0.5) 14.0 10.2 12.4
PR Newswire 94.8 (10.1) (6.8) 0.0 (3.4) 13.4 (22.5) (9.3)
NOP World 203.9 (4.3) (4.4) 0.5 0.5 19.3 7.8 30.5
Total 746.7 (5.9) (4.9) 2.7 (3.0) 99.4 53.2 67.4
12 months to 311203
14
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Underlying 2003 Revenue Change
Acquisitions 21.7m
Underlying Decline (22.5m) (3.0)
Biennials 1.8m
Forex (38.8m)
SARS (8.8m)
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Geographic Segmental Analysis
Pacific 5
Pacific 11
EMEA 5
EMEA 13
US 60
UK 30
US 51
UK 25
Operating Profit
Revenue
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Investment

• Net debt capacity increased to around 500m
• Minimum interest cover of 5 times
• Conservative approach to financing
• 375m of debt to be retired in 2004
• Acquisition financial criteria
• 8 post tax hurdle rate
• Generally eps enhancing first full year
• Organic investment target paybacks
• Publishing and events in 1 to 2 years
• PRN and NOP in 3 to 5 years

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Investments DeliveringOn track to generate 2004
13m operating profit
Acquisitions Consideration m
CMPi Builder / Barbour, Property Media 81.0
CMP Media Oncology / Cliggott 23.1
UAP This Caring Business 1.7
NOP Eurisko 24.1
Total 129.9
Contributed 2.9m in 2003 profit
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Investments DeliveringOrganic initiatives
H1 m
H2 m
Total m
Turnover
40.6
16.4
24.2


Operating profit/(loss)

(4.1)
(2.8)
(1.3)
20
2003 m
2002 m
Change


12 months to 3112 Turnover Operating profit




244.7 (4.8)
6.2 277.1
259.9 8.5
Audience share up to 6.6 Advertising share up
to 8.1
Net book values five 129.4 m Other
investments 43.6 m
Unaudited
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OPERATIONAL REVIEW
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Margin Performance
2003 2002
TOTAL 13.3 8.2

CMP Media 7.0 -
CMP Asia 28.4 26.8
CMPi 18.7 7.9
UAP 24.1 21.9
PR Newswire 14.1 16.4
NOP World 9.5 8.4
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Professional Media CMP Media
2003
2002
Change
Turnover (m)
12 months to 3112
(11.6)
210.5
238.2


Operating Profit (m) Operating Margin ()

317.6 -
14.8 7.0
(6.8) -
24
CMP Media Product AreasPercentage revenue
change
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CMP Media 2003 Review

• Scale improvements in operating efficiency
• Increased market share to 28.9 per cent
• Yields firm, up 4 per cent in 03, 8 per cent in
  H2
• Channel strong, also online and events
• Traction in organic product developments
• Over 10m in revenue in 2003
• Adding 3m to operating profit

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CMP Media High Tech Ad page volumes change on
same month in prior year
Large higher yielding titles trending better than
total
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CMP Media 2003 Review - Healthcare

• CME, Print, Events, Online
• Healthcare H2 ad page volumes up 4 per cent
• Underlying revenues up 42 per cent in H2
• Well positioned in fast growing sectors
• Psychiatry Neurology
• Acquired leading Oncology titles
• Acquisition outperforming business case
• Benefiting from increase in new drug launches

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Professional Media CMP Asia
2003
2002
Change
Turnover (m)
12 months to 3112
(13.1)
44.4
51.1



Operating Profit (m) Operating Margin ()

(8.0) 5.8
12.6 28.4
13.7 26.8
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CMP Asia2003 Review

• Post-SARS H2 performance well ahead of prior year
• SARS recovered 3.8m in insurance
• Growth in China
• Successful Japanese acquisition (KSS)
• H2 growth in jewellery and shipping
• 14 new launches during 2002 2003
• 7 scheduled for 2004

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Professional Media CMPi
2003
2002
Change
Turnover (m)
12 months to 3112
5.8
135.0
127.6



Operating Profit (m) Operating Margin ()

150.5 136.8
25.3 18.7
10.1 7.9
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CMP Information2003 Review

• Underlying revenue down 9.6 per cent
• Underlying profit up 130.1 per cent
• Significant costs savings drive margin to 18.7
  per cent
• Successful new products
• 81m of acquisitions on track to deliver 9m 2004
  profit

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Professional Media UAP
2003
2002
Change
Turnover (m)
12 months to 3112
0.0
58.1
58.1



Operating Profit (m) Operating Margin ()

10.2 10.2
14.0 24.1
12.7 21.9
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UAP2003 Review

• Delivered strong profit growth on flat revenues
• Achieved further operating efficiencies
• All major products grew profits
• Strengthening position in core markets
• Successful cross selling Auto Exchange / EM
• Strength of new products / online
  DaltonsBusiness.com
• Integrated This Caring Business to plan
• Widens range of specialised titles

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PR Newswire - News Distribution
2003 m
2002 m
Change
12 months to 3112


Turnover America RoW



86.0 8.8 94.8 16.1 (2.7) 13.4 14.1
(10.0) (10.2) (10.1) (16.6) - (22.5) (13.9)
95.6 9.8 105.4 19.3 (2.0) 17.3 16.4

Operating profit America RoW
Margin
35
Quarterly Newswire VolumesCore US News
Distribution in thousands
H1 volumes down 8, H2 just ahead of prior year
54.8
54.7
35k-gt
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PR Newswire News Distribution2003 Review

• Message volumes up in Q4 2003
• No of US companies declined again (down net 300)
• During 2003 IPOs started overtaking delistings
• Discretionary releases increasing
• New product announcements up 9 per cent
• Newswire H2 yields up 1 per cent
• Margins held back in H2 due to restructuring and
  organics
• Europe and Asia challenging
• High operational leverage

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NOP World - Market Research
2003 m
2002 m
Change
12 months to 3112

Turnover America RoW



127.6 76.3 203.9 14.0 5.3 19.3 9.5
(7.7) 2.0 (4.3) 8.6 6.7 7.8 12.6
138.2 74.8 213.0 13.0 4.9 17.9 8.4

Operating profit America RoW
Margin
38
NOP World Market Research2003 Review

• Strong performances from syndicated and
  continuous
• Healthcare and ad hoc improving
• Underlying margin growth
• Restructuring to improve margin and drive key
  sector growth
• Strengthened management team
• Substantial investment in new products
• Eurisko acquired
• Leading position in Italy new products for NOP
  network
• Rapid growth in online

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Summary
2003 Achievements
2004 Outlook

• Business model transformed
• Yields and revenue improving
• Investment programme success

• Revenue and margin growth
• Investments delivering, more to come
• Trading climate improving

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NOP World Growing The Future
Key Account Management Client Satisfaction NOP
World Growth

• Client Focus SECTORS
• Industry Expertise
• Client Expertise
• Client Penetration