Results Presentation Half year ended 31 March Thursday 25 May 2017

Transcription

1 Results Presentation Half year ended 31 March 2017 Thursday 25 May 2017

2 Agenda 1. Highlights Paul Zwillenberg, CEO 2. Financial Performance Tim Collier, CFO 3. Strategy and Business Update Paul Zwillenberg, CEO 4. Q&A 2

3 1 Highlights Paul Zwillenberg, CEO 3

4 Half Year 2017 Performance broadly in line with expectations Group underlying revenues +1%; underlying operating profit -11% B2B: mixed performance Consumer: encouraging dmg media performance Euromoney reduction in stake Continued real dividend growth 4

5 Strategy on track starting to deliver against clear priorities Ongoing operational execution improvements: Strengthened management team RMS(one) Risk Modeler launch MailOnline s good progress on path to profitability Increasing portfolio focus: Euromoney and Elite Daily Enhanced financial flexibility: stronger balance sheet 5

6 2 Financial performance Tim Collier, CFO 6

7 Financial Summary Adjusted numbers million HY 2016 HY 2017 Change Underlying Revenue (6%) +1% Operating profit (27%) (11%) Profit before tax (18%) Operating margin 15% 11% Earnings per share 27.9 p 24.6 p (12%) Dividend per share 6.7 p 6.9 p +3% Revenue dynamics: underlying growth in B2B (+1%) and stable dmg media (+0%) Operating profit down 11% underlying: RMS and dmg information Operating margin of 11%: (adjusting for Euromoney, 13% HY16 11% HY17) Euromoney transaction particularly impacted revenues and operating profit EPS down 12%, Dividend up 3% 7

8 Reduced stake in Euromoney Two stage process: share placing and Euromoney share buy-back in December 2016 Reduced stake from c.67% to c.49% Total consideration of 317m, exceptional profit on disposal of 509m - Profit includes revaluation of the remaining c.49% stake De-coupling of balance sheets: increased financial flexibility for Euromoney Subsidiary for three months to December 2016: - Consolidate 100% of revenue and 100% of operating profit - Minority interest equivalent to c.33% of post tax profits - Consolidate 100% of operating cash flow Associate for three months to March 2017: - Include c.49% share of operating profit in JV s and Associates - Include c.49% of finance charge and tax - Cash flow from dividends received 8

9 Euromoney impact Adjusted numbers: HY16 Pro Forma, revised in respect of Euromoney million HY 2016 HY 2017 Change Underlying Revenue % +1% Operating profit (8%) (11%) Profit before tax (8%) Operating margin 13% 11% Earnings per share 26.7 p 24.6 p (8%) Dividend per share 6.7 p 6.9 p +3% Euromoney c.67% subsidiary during Q1 and c.49% associate during Q2 Underlying performance unchanged since excludes Euromoney completely Transaction contributed to lower net debt:ebitda ratio of 1.6x as at 31 March 2017 (2.0x Mar 16) Note: HY 2016 revenues, operating profit, share of profits from associates, finance charge, tax charge and minority interests have been restated to treat Euromoney as a c.67% subsidiary for the three months to December 2015 but as a c.49% associate for the three months to March These changes impact earnings per share. 9

10 The shape of DMGT post Euromoney transaction Restated FY 2016 dmg media 47% Revenue: 1.5bn 7% 13% B2B 53% Consumer 47% dmg events RMS 33% dmg information Euromoney Associate ZPG Associate 9% dmg media PBIT*: 249m 21% 23% 12% B2B 68% Consumer 32% 10% RMS 25% dmg events dmg information Note: * PBIT is profit before tax, adjusted to exclude finance charges. Corporate costs are allocated to RMS, dmg information, dmg events and dmg media on a revenue basis. Note: The figures show FY 2016 restated on the basis of Euromoney being a c.49% owned associate for the Full Year. 10

11 B2B 11

12 RMS Performance in line with expectations million HY 2016 HY 2017 Change Underlying Total Revenue % +1% Operating Profit (20%) (40%) Operating Margin 20% 13% Continued underlying revenue growth: benefit from model enhancements offsetting client consolidation RMS(one) costs: amortisation and no capitalisation in HY RMS s EBITDA * margin increased from 17% HY 2016 to 24% HY 2017 RMS(one) Risk Modeler: launched April 2017 RiskLink17: released April 2017 with 5 model updates & 3 new models; strong model pipeline Outlook Full Year Unchanged: - Low-single digit underlying revenue growth - Operating margin in low teens Note: * EBITDA has been adjusted to exclude benefit of capitalisation of RMS(one) development costs from HY 2016, as well as excluding depreciation and amortisation costs. 12

13 dmg information Mixed revenue performance specific challenges for some businesses million HY 2016 HY 2017 Change Underlying Property - European % (4%) Property - US % +4% Property % (1%) Education % +3% Energy % +2% dmg information % +0% European property: Landmark & Searchflow - challenging market volumes, UK mortgage approvals down 3% US property: Trepp, EDR, Xceligent, SiteCompli & Buildfax - good growth from early-stage businesses Education: Hobsons - good growth for Naviance, Intersect & Starfish; challenging trading for Admissions Energy: Genscape - growth partly offset by challenging market conditions for solar business, Locus Energy 13

14 dmg information Continued investment million HY 2016 HY 2017 Change Underlying Revenue % +0% Operating Profit (6%) (17%) Operating Margin 11% 9% Stable underlying revenues: varied performance across portfolio Investment in Xceligent: year-on-year margin improvement excluding Xceligent Outlook Full Year 2017 downward pressure - Low-single digit underlying revenue growth - Operating margin in mid-teens: now expected to be less than FY 2016 reflecting adverse impact from lower revenue growth and Xceligent investment 14

15 dmg events Underlying growth continues million HY 2016 HY 2017 Change Underlying Revenue (5%) +3% Operating Profit (15%) +2% Operating Margin 35% 31% Continued underlying revenue growth Gastech: H2 FY 2017 but H1 FY 2016 timing impact on H1 FY 2017 reported results and margin Outlook Full Year 2017: - Strong Gastech event in Tokyo in April Challenging market conditions for Canadian energy sector - Changes to phasing of launch programme - Mid-single digit underlying revenue growth; absolute revenues in line with market expectations* - Operating margin of c.25% Note: * Current consensus for dmg events FY 2017 revenues is 119m with a range from 112m to 128m. 15

16 Euromoney Only a subsidiary during Q1 FY 2017 million HY 2016 HY 2017 Change Revenue (51%) Operating Profit (59%) Operating Margin 24% 20% HY 2017 only includes 3 months to December 2016 million Q1 FY 2016 Q1 FY 2017 Change Revenue % Operating Profit % Operating Margin 20% 20% Note: The bottom table shows the Pro Forma HY 2016 figures. 16

17 Consumer 17

18 dmg media Encouraging performance million HY 2016 HY 2017 Change Underlying Revenue (2%) +0% Operating Profit (9%) +5% Operating Margin 11% 10% Resilient underlying revenues: digital growth, consistent circulation revenues, declining print advertising Underlying operating profit growth: MailOnline s good progress on path to profitability and continued management of newspaper cost base Outlook Full Year Unchanged: - Stable underlying revenues (-2% to +2%) - Absence of 53 rd week, Wowcher and Elite Daily from H Stable operating margin (FY %) 18

19 dmg media Revenue million HY 2016 HY 2017 Change Underlying Circulation % +2% Advertising print (9%) (8%) Advertising digital % +12% Other (21%) (13%) Revenue (2%) +0% (1%) Note: Excluding Elite Daily, total advertising revenues were in line with last year on an underlying basis. 19

20 dmg media Revenue million HY 2016 HY 2017 Change Underlying Daily Mail / The Mail on Sunday (3%) (3%) circulation % +2% advertising (12%) (12%) other 10 8 (18%) (18%) MailOnline % +19% Mail Businesses % +0% Metro % +1% Elite Daily 5 4 (22%) (35%) Newsprint & other (25%) Total Continuing % +0% Wowcher & 7 Days 9 1 (88%) Total Revenue (2%) +0% 20

21 dmg media Profit dynamics million HY 2016 HY 2017 Change Underlying Mail Businesses % +12% Metro 8 5 (35%) (35%) Elite Daily (4) (4) +3% +16% Total Continuing (4%) +5% Wowcher & 7 Days 1 (1) (162%) Total dmg media (9%) +5% Strong underlying growth from Mail businesses, driven by MailOnline s good progress on path to profitability Expanded circulation at Metro, increased production and distribution costs 21

22 Revenues million HY 2016 HY 2017 Change Underlying B2B RMS % +1% dmg information % +0% dmg events (5%) +3% Euromoney % N/A % +1% Consumer dmg media (2%) +0% Total Revenue % +1% Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY

23 Diverse revenue streams Revenues by type Transactions & Other 19% 12% Print Advertising 8% Digital Advertising Events, Conferences & Training 11% 17% Circulation Subscriptions 33% Percentages represent share of revenues in HY Arrows represent underlying revenue growth trajectories during the period. 23

24 Operating profit million HY 2016 HY 2017 Change Underlying B2B RMS (20%) (40%) dmg information (6%) (17%) dmg events (15%) +2% Euromoney % N/A (9%) (20%) Consumer dmg media (9%) +5% Group corporate costs (18) (15) (14%) +14% Total operating profit (8%) (11%) Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY

25 Joint ventures & Associates DMGT s share of operating profits million HY 2016 HY 2017 ZPG Plc Euromoney Other - (1) Total JV's & Associates ZPG Plc: Continued strong performance; revenue +22%, adjusted basic EPS +3% Euromoney: Q2 results, reflecting c.49% stake; $125m acquisition of RISI in April 2017 Full Year 2017 guidance: c. 65m, including benefit of 9 months of Euromoney being an associate Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY

26 Adjusted results million HY 2016 HY 2017 Change Adjusted operating profit (8%) Joint ventures and associates Net finance costs (20) (21) Adjusted profit before tax (8%) Taxation (16) (15) Minorities (4) (3) Adjusted earnings (8%) Adjusted EPS 26.7 p 24.6 p (8%) Adjusted tax rate 14.2% 14.6% Note: HY 2016 figures are on a Pro Forma basis, treating Euromoney as a c.49% owned associate during Q2 FY Please see slide 49 for the adjustments. 26

27 Exceptional items and amortisation million HY 2016 HY 2017 Reorganisation, redundancy and consultancy (6) (17) Other cash items (6) (3) Sub-total of cash items (12) (20) Accelerated depreciation and impairment of plant - (35) Exceptional operating costs 1 (12) (55) Amortisation, Impairment & other (30) (14) Profit on sale of assets Pre-tax exceptional credit Closure of Didcot printing plant: 35m non-cash impairment and 5m of restructuring and redundancy Reorganisation at dmg information: 9m of reorganisation, redundancy and consultancy costs Profit on sale of assets includes 509m gain on disposal of Euromoney Notes: 1 Exceptional operating costs, impairment of internally generated and acquired computer software, property, plant and equipment and investment property: continuing and discontinued operations. 27

28 Net debt movement Net debt:ebitda 1.6x (vs. 2.0x Mar 16) m Opening net debt Operating cash flow Taxation Pensions Interest Dividends Deconsolidate Euromoney M&A FX adjustment Closing net debt Operating cash flow is stated after capex of 41m and exceptional operating items of c. 27m Pre exceptional operating cash conversion 63% (vs. 41% HY 2016) Usual seasonal cash flows: incentive plan, pension and dividend payments 28

29 Revenue and profit outlook FY 2017 Revenue Margin Underlying revenue growth Margin B2B RMS 205 m 18% Low-single digit % Low-teens % dmg information 498 m 15% Low-single digit % Mid-teens % dmg events 105 m 28% Mid-single digit % ¹ Around 25% Consumer FY 2016 Outlook FY 2017 dmg media 706 m 11% Stable ² Stable Corporate costs c. 35m JV s & Associates (pre tax) c. 65m Net finance costs c. 40m Notes: 1 Underlying revenue guidance for dmg events reduced from high-single digit to mid-single digit but outlook for absolute revenues in line with market expectations (consensus 119m, range 112m to 128m) 2 - Stable underlying revenues for dmg media means -2% to +2%. dmg media s FY 2016 revenues were 677m excluding Wowcher, the benefit of the 53 rd week and Elite Daily 29

30 Financial Summary H1 performance broadly in line with expectations: B2B - mixed Consumer encouraging dynamics H2 Considerations: Gastech event in April 2017 US$ / FX rate (FY 2016 $1.42 average) DMGT well positioned for the long-term: Stronger balance sheet Good long-term growth potential 30

31 3 Strategy and Business Update Paul Zwillenberg, CEO 31

32 Strategy and Business Update Progress on key strategic priorities Improving operational execution Increasing portfolio focus Enhancing financial flexibility Summary 32

33 DMGT strengths Driving our long-term success High-potential markets Content and proprietary data Home for entrepreneurs Long-term perspective Diversified portfolio 33

34 Positioning DMGT for the future Our markets continue to develop 4.0: Embedded AI 1.0: Publishing Raw data Advertising Print delivery Customer-derived insights 2.0: Digital Publishing Data & visualisation Subscriptions Electronic delivery Basic analytic tools On-premise 3.0: Decision & Workflow Support Data synthesis Licensing Platforms Embedded in the workflow Benchmarking Delivered insights Customisable analytics Hybrid on-premise & cloud Machine learning on big data Exhaust data monetisation Ecosystems Embedded in the enterprise Artificial intelligence Systems make decisions Predictive analytics Cloud Horizons of technology-enabled evolution 34

35 Key priorities Improving operational execution Increasing portfolio focus Enhancing financial flexibility Delivering on our potential 35

36 Priority 1: Improving operational execution Signature moves across the portfolio Performance management Faster, fitter and more agile Product Pricing Go-to-market Targets & KPI s Focused priorities Incentive plans Reorganisation initiatives Faster decision making New Executive Committee Value creation across the portfolio Delivering on our investments 36

37 Priority 1: Improving operational execution Progress report H1 progress Strengthened management team - RMS(one) Risk Modeler launch - Strong model launch programme Path to profitability 37

38 MailOnline audience continues to grow Expansion across multiple channels Average viewers per day ¹ (millions) 49m total ¹ Facebook 24m daily viewers¹ +349%² Other³ April 2017 MailOnline: continued growing engagement, direct to the site Snapchat: MailOnline key channel within Snapchat Facebook: video engagement c.45 million de-duplicated average daily viewers¹ DailyMail.com TV: future platform autumn 2017 Snapchat 10m daily viewers¹ +698%² MailOnline branded 15m daily viewers¹ +8%² Notes: 1 - Average viewers per day are unique viewers per platform during April 2017, as defined by platform source. The estimated total daily unique viewers after adjusting for duplication across platforms was c.45 million. 2 - Growth rates compare average viewers per day¹ in April 2017 to April Average minutes per viewer per day 3 - Other includes Pinterest and Apple: 0.3m average viewers, 1.1 average minutes. Source: MailOnline s Omniture data, Snap Inc, Facebook 38

39 Priority 1: Improving operational execution Second half priorities H1 progress H2 priorities Strengthened management team - RMS(one) Risk Modeler launch - Strong model launch programme Path to profitability 39

40 Priority 2: Increasing portfolio focus Positioning DMGT for Digital 4.0: criteria to evaluate present and future businesses Investment criteria What we consider Attractive and value creating Scalability Long-term competitive advantage Affordability Achievability Expected future revenue, profit and cash flow to deliver value End market size, growth rate and competitive position Value of proprietary data and services Investment to achieve full potential Ability and resources of current business to execute Diversified portfolio, with more focused investment approach 40

41 Priority 2: Increasing portfolio focus Progress report H1 progress H2 priorities Euromoney Associate Continuing portfolio review Elite Daily disposal & 7 Days closure Prioritise growth initiatives Hobsons focus on growth Active portfolio management 41

42 Priority 3: Enhancing financial flexibility To pursue range of capital allocation opportunities Improved operational execution and cash flow Increased portfolio focus Enhanced financial flexibility Invest in market leading positions Increase shareholder returns 42

43 Priority 3: Enhancing financial flexibility Progress report H1 progress H2 priorities Lower net debt and improved net debt:ebitda ratio Continue to invest in selected growth initiatives Improved RMS cash flow dynamics Improvement in business cash flows Incorporating cash flow into remuneration Further improve net debt:ebitda ratio by year end 43

44 Summary H1 performance broadly in line with expectations We are starting to deliver against clear strategic priorities: Improving operational execution Increasing portfolio focus Enhancing financial flexibility Priority is to deliver on long-term potential of DMGT 44

45 4 Questions 45

46 5 Appendix 46

47 H Adjusted PBT HY 2016 to HY 2017 Bridge m (14) 115 (4) (2) (4) dmg events dmg information RMS (4) (2) HY 2016 Euromoney revision Revised HY 2016 B2B dmg media Corporate costs Euromoney trading Other JV's & Associates Interest HY 2017 Notes: The HY 2017 adjusted PBT benefited by c. [14]m from FX rates (Average rate of $1.24 vs. $1.48 in HY 2016) 47

48 H Earnings per share HY 2016 to HY 2017 Bridge (1.2) (2.2) 0.1 Pence HY 2016 Euromoney revision Revised HY 2016 PBT Trading Other items HY

49 HY 2016 Pro Forma Adjusted earnings million Reported Revisions Pro Forma Adjusted operating profit 138 (29) 109 Joint ventures and associates Net finance costs (20) - (20) Adjusted profit before tax 129 (15) 115 Taxation (19) 3 (16) Minorities (12) 8 (4) Adjusted earnings 99 (4) 95 Adjusted EPS 27.9 p (1.2) p 26.7 p Adjusted tax rate 14.8% 14.2% This slide reclassifies Euromoney from being a c.67% owned subsidiary during Q2 FY 2016, to being a c.49% owned associate. 49

50 B2B & Consumer diversity million HY17 share HY 2016 HY 2017 Change Underlying Revenues B2B 61% (9%) +1% Consumer 39% (2%) +0% 100% (6%) +1% Profits* B2B 70% (33%) (20%) Consumer 30% (9%) +10% 100% (27%) (11%) * Profits include Corporate costs, allocated on a revenue basis. 50

51 Geographical diversity HY 2017 Revenues HY 2017 Profits 47% UK 33% North America 20% Rest of World 43% UK 31% North America 26% Rest of World Revenues by destination and profits by source Rest of World revenues, 20%: 10% Rest of Europe, 2% Australia, 8% Asia, Middle East, Caribbean, Africa and Latin America 51

52 Revenue dynamics Weak print advertising million % of total HY 2016 HY 2017 Change Underlying Advertising - print 12% (14%) (8%) - digital 8% % +10% Circulation 17% % +2% Subscriptions 33% (1%) +4% Events, conferences and training 11% (30%) +3% Transactions & other 19% (5%) (4%) Total Revenue 100% (6%) +1% (1%) - Reported print advertising, subscriptions and events growth impacted by the deconsolidation of Euromoney - Reported events growth impacted by the non-occurrence of the Gastech event Share of revenues shown to nearest whole percentage. 52

53 Underlying analysis Revenues HY 2016 HY 2017 million % Underlying M&A Exchange Other Actual Underlying M&A Other Actual B2B RMS +1% dmg information +0% 258 (1) (0) dmg events +3% (16) Euromoney N/A - (194) (95) % 440 (195) 58 (16) (95) Consumer dmg media +0% 333 (7) 4 (23) (1) (17) 350 Total +1% 772 (202) 62 (39) (96) (17) 890 Underlying results are adjusted for constant exchange rates, the exclusion of disposals and closures and for the inclusion of the year-on-year organic growth from acquisitions. For events, the comparisons are between events held in the year and the same events held the previous time. For dmg media, underlying revenues exclude low margin newsprint resale activities. Amounts are stated rounded to the nearest 1m, consequently totals may not equal the sum of the component integers. 53

54 Underlying analysis Adjusted operating profit million % Underlying M&A Exchange Other Actual Underlying M&A Other Actual B2B RMS (40%) dmg information (17%) dmg events +2% 21-4 (8) Euromoney N/A - (47) (19) - 19 Consumer 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 20% and +10% respectively. Other includes adjustments for the timing of shows at dmg events. HY 2016 (20%) 75 (46) 13 (8) (19) - 80 Amounts are stated rounded to the nearest 1m, consequently totals may not equal the sum of the component integers. HY 2017 dmg media +5% 35 (2) (2) Corporate costs +14% (18) (18) (15) - - (15) Operating profit (11%) 92 (48) 11 (8) (19)

55 Geographical analysis Revenues by destination million RMS dmgi dmge Euromoney dmg media Total Revenue UK North America Rest of World This table shows the revenues based on the location of the client receiving the goods or services 55

56 Geographical analysis Revenues by source million RMS dmgi dmge Euromoney dmg media Total Revenue UK North America Rest of World This table shows the revenues based on the location of the DMGT company that is providing the goods or services to the clients 56

57 Category analysis Revenues by type million RMS dmgi dmge Euromoney dmg media Total Advertising - print digital Circulation Subscriptions Events, conferences and training Transactions & other (2)

58 Advertising revenues Digital increase more than offset by print decline million % of total HY 2016 HY 2017 Change Underlying UK National newspapers 56% (9%) (8%) Euromoney 4% 15 7 (53%) N/A Total print 60% (14%) (8%) News websites (MailOnline & Metro) 32% % +17% Consumer websites 2% 12 4 (65%) (31%) Euromoney 1% 3 2 (44%) N/A Other 5% % +0% Total digital 40% % +10% Total advertising 100% (6%) (1%) 58

59 Net finance costs million HY 2016 HY 2017 Net interest payable pre JV's and Associates Share of JV's and Associates finance costs 1 2 Net interest payable Items excluded from adjusted results: IAS19(Revised) finance costs 2 3 Net interest payable adversely impacted by stronger US Dollar Increased share of associates interest payable Outlook Full Year 2017: net finance costs c. 40m 59

60 Exceptional items and amortisation million HY 2016 HY 2017 Reorganisation, redundancy and consultancy (6) (17) Supplier voluntary administration (5) - Legal fees - (3) Earn-out / deferred consideration charges (1) - Sub-total of cash items (12) (20) Accelerated depreciation and impairment of plant - (35) Exceptional operating costs 1 (12) (55) Amortisation of intangible assets (23) (26) Impairment of intangible assets & goodwill (13) (14) Profit on sale of assets Other non-operating items 6 26 Pre-tax exceptional credit Notes: 1 Exceptional operating costs, impairment of internally generated and acquired computer software, property, plant and equipment and investment property: continuing and discontinued operations. 60

61 Adjusting items Reconciliation from statutory PBT to adjusted PBT million HY 2016 HY 2017 Statutory Profit Before Tax - continuing operations Add: Statutory PBT - discontinued operations - 14 Add: Profit on disposal of discontinued operations ¹ Statutory PBT including discontinued operations Reverse: Pre-tax exceptional credit (slide 60) ¹ (68) (461) Remove: IAS19(Revised) finance costs (slide 59) 2 3 Adjusted Profit Before Tax ¹ The 530m profit on disposals in HY 2017 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. 61

62 Balance Sheet million 31 Mar'16 31 Mar'17 Movement Goodwill & Intangible assets 1, (460) Other non-current assets 566 1, Current assets (excl. cash) (10) Net debt (719) (551) 168 Pension deficit (85) (43) 42 Other liabilities (880) (661) 219 Net assets 627 1, Equity attributable to owners of DMGT 466 1, Non-controlling interests (147) Shareholders' equity 627 1,

63 Pension deficit million Obligations Assets Deficit As at 30 September 2016 (2,999) 2,753 (246) Benefit payments 50 (50) 0 Interest (cost) / income (32) 29 (3) Company contributions Actuarial movement Disposal 71 (70) 1 As at 31 March 2017 (2,823) 2,780 (43) 63

64 Net debt Strong funding position Bonds Coupon m December % 215 April % 11 June % Facilities 135 Cash, other debt & derivatives (10) Net Debt 551 Bank facilities Facility Drawings Undrawn Expiring March (135)

65 Pension deficit funding plan millions m 48m 13m 8m 19m 34m 5m 29m 29m 29m H1 FY17 13m 13m 19m FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY m 13m 13m Xm Xm Total Recovery Plan Amounts Total Actual Payments Northcliffe disposal Share buy-back / Other Minimum recovery payments Funding plan agreed in Sep 16: c. 13m p.a. to FY 2019 and c. 16m p.a. from FY 2020 to FY Additional 15-30m payable in FY 2022, dependent upon DMGT s cash generation performance in FY , less any contributions related to any future share buy-backs. Contributions cease once actuary agrees schemes are not in deficit. IAS19 deficit at 31 March 2017 = 43m ( 246m at 30 September 2016) Future payments in excess of 13m p.a. of minimum recovery plan payments to FY 2019 are dependent on share buy-backs plus other minor contributions. Agreed to contribute 20% of any future share buy-backs. 65

66 Gastech in FY 2018 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Gastech B 18M 18M 18M 18M 18M Big 5 Dubai A A A A A A A A ADIPEC B A A A A A A A FY13 FY14 FY15 FY16 Revenues m m m m Total for major events Other events A 18M Key Annual 18 Months 66

67 Underlying advertising revenue trends million % Q1 Q2 Half Year Newspapers 62% % v last year (11%) (4%) (8%) Newspaper websites 36% % v last year +16% +20% +18% Subtotal 98% % v last year (2%) +3% +0% Digital businesses 2% % v last year (37%) (42%) (39%) Total 100% % v last year (4%) +2% (1%) Percentages show underlying variances. Newspaper websites includes revenues from the Metro app for tablets and mobile devices, these are excluded from MailOnline s revenues. 67

68 Advertising revenue quarterly trends % of total Q1 v PY Q2 v PY HY17 v PY Retail 23% (11%) (31%) (19%) Travel 11% +11% +7% +8% Entertainment 11% (22%) +14% (6%) Finance 6% (27%) (25%) (26%) Telecoms 6% (13%) +29% +5% Motors 3% (44%) +0% (24%) Mail Order 4% +0% +8% +4% Others 36% +21% +17% +19% Total 100% (2%) +1% +0% UK newspaper titles, including companion websites. Excludes Daily Mail Australia and other digital businesses such as Elite Daily. 68

69 Reporting calendar Reporting dates for FY 2017 Release Provisional Date Q3 Trading update 27 July 2017 Pre-close trading update 29 September 2017 Preliminary full year results 30 November

70 Dividend growth continues 20 year CAGR: 8% p p Dividend Inflation 7.1p FY 2017 Interim dividend of 6.9 pence, up +3% 70

71 Share price performance The 20 year view excluding dividend reinvestment DMGT A Shares FTSE All Share Mar-97 Aug-97 Jan-98 Jun-98 Nov-98 Apr-99 Sep-99 Feb-00 Jul-00 Dec-00 May-01 Oct-01 Mar-02 Aug-02 Jan-03 Jun-03 Nov-03 Apr-04 Sep-04 Feb-05 Jul-05 Dec-05 May-06 Oct-06 Mar-07 Aug-07 Jan-08 Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 71

72 Important Notice 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. 72

73 Notes 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 include results from discontinued operations, specifically the Euromoney subsidiary. Percentages are calculated on actual numbers to one decimal place. Underlying revenue or profit is revenue or profit on a likefor-like basis. Underlying results are adjusted for constant exchange rates, the exclusion of disposals and closures and for the inclusion of the year-on-year organic growth from acquisitions. For events, the comparisons are between events held in the year and the same events held the previous time. For dmg media, underlying revenues exclude low margin newsprint resale activities. Amounts are stated rounded to the nearest million pounds, consequently totals may not equal the sum of the component integers. 73

74 Thank you