Thursday 22 May 2014 RESULTS PRESENTATION HALF YEAR ENDED 31 MARCH 2014

Transcription

1 Thursday 22 May 2014 RESULTS PRESENTATION HALF YEAR ENDED 31 MARCH 2014

2 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 DMGT 2

3 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, including revenue and operating profit, are for total operations, including those treated as discontinued, namely Northcliffe Media. Adjusted finance charges, tax and earnings per share are restated following the revision to International Accounting Standard 19 Employee Benefits [IAS19 (R)]. The pension finance income of 15m previously recognised in FY 2013 has been restated as a pension finance charge of 13m (H1 13 7m income restated as 7m charge). The pension finance item is now excluded from adjusted earnings. 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-forlike 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 ECCTIS, a Hobsons business, which was disposed of in January For dmg events, the comparisons are between events held in the year and the same events held the previous time other than ADIPEC, which became an annual event in November 2013, which is compared to 50% of the revenue and profit of the biennial November 2012 event. For Euromoney, no adjustments are made for the timing of events but acquisitions are completely excluded and underlying profit excludes the benefit in both FY 2013 and FY 2014 of the historic acceleration of its CAP charge. For dmg media, underlying comparisons exclude low margin contract printing revenue, which ceased last year, the central and eastern European businesses, which were disposed of last year, Villarenters, OilCareers and Broadbean, which were disposed of during the first half of this financial year, and distribution services, which ceased earlier this year. For the seven week and thirty three week periods to 18 May 2014, dmg media s underlying advertising performance also excludes Jobrapido, which was disposed of in April Northcliffe Media is excluded from the DMGT Group underlying comparisons DMGT 3

4 AGENDA Financial Performance STEPHEN DAINTITH, FINANCE DIRECTOR Business Update MARTIN MORGAN, CHIEF EXECUTIVE Q&A

5 GOOD FIRST HALF PERFORMANCE Group underlying revenue up 6% Underlying operating profit up 21%; operating margin up to 17% Adjusted profit before tax up 16%; EPS up 20% Active portfolio management: acquisitions within dmg information and Euromoney; disposal of the majority of online recruitment businesses; Zoopla IPO and Jobsite disposal announced today Net debt:ebitda ratio of 2.0x Interim dividend of 6.2p, up 5% Outlook for the Full Year in line with market expectations 2014 DMGT 5

6 1 FINANCIAL PERFORMANCE STEPHEN DAINTITH, FINANCE DIRECTOR

7 FINANCIAL SUMMARY Adjusted numbers million HY 2014 HY 2013 Change Underlying Revenue % +6% Operating profit % +21% Profit before tax % Operating margin 17% 16% Earnings per share 29.4 p 24.4 p +20% Dividend per share 6.2 p 5.9 p +5% Revenue up 2%, underlying up 6% good growth in B2B (+11%) and Consumer up (+1%) Operating profit up 21% underlying Margin improvement to 17% Profit before tax up 16% EPS up 20%, Dividend up 5% Profit before tax growth of c.+19% at constant FX rates 2014 DMGT 7

8 REVENUE By business million HY 2014 HY 2013 Change Underlying B2B Risk Management Solutions % +8% dmg information % +15% dmg events % +28% Euromoney % +3% Consumer % +11% dmg media (2%) +1% Northcliffe - 49 (100%) (12%) +1% Total Revenue % +6% Excluding ADIPEC, underlying growth rates are dmg events +18%, B2B +10% and DMGT Group +6% 2014 DMGT 8

9 REVENUE DYNAMICS million % of total HY 2014 HY 2013 Change Underlying Advertising - print 17% (20%) (5%) - digital 9% % +22% Circulation 18% (12%) (3%) Subscriptions 29% % +10% Events, conferences and training 14% % +15% Transactions & other 14% % +12% Total Revenue 100% % +6% +3% Underlying growth in all but one category Reported revenue growth rates impacted by M&A: - Reported advertising (print and digital) and circulation adversely impacted by Northcliffe Media and central & eastern European disposals - Reported transactions and other favourably impacted by DIIG acquisition 2014 DMGT 9

10 OPERATING PROFIT By business million HY 2014 HY 2013 Change Underlying B2B Risk Management Solutions (5%) (1%) dmg information % +46% dmg events % +21% Euromoney % +3% Consumer % +11% dmg media % +44% Northcliffe - 7 (100%) % +44% Corporate costs (21) (21) (3%) (3%) Total operating profit % +21% Note: B2B and Consumer operating profits are stated before allocating Corporate costs. Including Corporate costs the underlying growth rates for B2B and Consumer were +12% and +61% respectively DMGT 10

11 B2B 2014 DMGT 11

12 Strong core business million HY 2014 HY 2013 Change Underlying Revenue: Core Business % +6% Revenue: RMS(one) 2 1 Total Revenue % +8% Operating Profit (5%) (1%) Operating Margin 34% 36% Revenues up 4% (up 8% underlying); Core business continues to grow with ongoing releases RMS(one) production-ready launch scheduled for Q1 FY 2015 Outlook: Full Year 2014 Mid single digit underlying revenue growth; strong adversely impacting reported results Increased cost base ahead of RMS(one) launch, notably data centres, to reduce FY 2014 margin Significant client engagement in respect of RMS(one) Operating profit of 45-50m, margin c.25% 2014 DMGT 12

13 Strong growth million HY 2014 HY 2013 Change Underlying Revenue % +15% Operating Profit % +46% Operating Margin 14% 15% Strong underlying revenue growth: Property +16%, Education +19%, Energy +18% and Financial +4% HY 2014 results include DIIG and Xceligent* Good underlying margin improvement: Excluding DIIG and Xceligent, margin improved from 15% in HY 2013 to 18% in HY 2014 Outlook: Full Year 2014 Underlying revenue growth of 10% to 15%; strong adversely impacting reported results Operating margin in the high teens * Excluding DIIG and Xceligent, dmg information s underlying revenue growth was +13% and underlying profit growth was +38% and the property vertical s underlying revenue growth was +12% 2014 DMGT 13

14 Continued strong growth million HY 2014 HY 2013 Change Underlying Revenue % +28% Operating Profit % +21% Operating Margin 33% 35% Strong underlying growth Successful transition of ADIPEC* from biennial to annual and Gastech to 18 month cycle Outlook: Full Year 2014 Underlying revenue growth of around 15%, reported revenue growth of 10% to 15% Operating margin of around 25% Stronger growth rates for larger events; heavily weighted to first half of year Increased spend on content and marketing ( visitors, margin) * Excluding ADIPEC, dmg events s underlying revenue growth was +18% 2014 DMGT 14

15 Challenging markets million HY 2014 HY 2013 Change Underlying Revenue % +3% Operating Profit % +3% Operating Margin 28% 28% Underlying revenue growth Reduced CAP costs; pre CAP margin down 2%, reported margin constant Acquisition of Infrastructure Journal Outlook: Full Year 2014 Challenging conditions in banking sector; asset management stronger, supporting research & data revenues Adverse FX impact expected to be larger during 2 nd half of FY2014 New CAP scheme agreed FY 2017 adjusted PBT target (pre CAP costs) of 174m 2014 DMGT 15

16 2014 DMGT 16

17 Margin improvement million HY 2014 HY 2013 Change Underlying Revenue (2%) +1% - circulation (5%) (3%) - advertising print (6%) (5%) - advertising digital % +21% +3% - other (6%) +11% Operating Profit % +44% Operating Margin 13% 9% Outlook: Full Year 2014 Underlying revenue growth: advertising offsetting circulation decline Margin benefit from prior and current year cost saving initiatives First seven weeks of H2 14: circulation 6%, underlying advertising +10%; year to 18 May underlying advertising growth of +6% (April Easter benefit & Jobrapido disposal) Stable underlying revenues Online recruitment disposals* Lower operating margin in H2 14 (declining circulation revenues). Full year margin >10% * Underlying growth rates exclude OilCareers and Broadbean. Restated Half Year underlying growth rates to exclude Jobrapido: digital advertising revenues +35%, total advertising revenues +5%, total revenues +1% and operating profit +50%. Expect Jobsite disposal to complete in Q4 calendar 2014 and total proceeds from disposal of Evenbase to be 150m DMGT 17

18 Resilient revenue performance million HY 2014 HY 2013 Change Underlying Daily Mail / The Mail on Sunday (3%) (3%) circulation (3%) (3%) advertising (4%) (4%) other % +14% MailOnline % +45% Mail Businesses % +0% Metro, 7 Days % +0% Wowcher % +111% Jobsite % +4% Other - continuing 2 4 (44%) (44%) % +1% OilCareers, Broadbean & Jobrapido* Other - discontinued (inc. CEE) 1 11 Total (2%) +1% * The disposal of Jobrapido completed in April dmg media s underlying revenue growth rate was +1% both including and excluding Jobrapido DMGT 18

19 JOINT VENTURES & ASSOCIATES million HY 2014 HY 2013 Zoopla Property Group 10 8 Local World 7 3 Xceligent - (2) Other - (1) Total 17 8 Zoopla Property Group (52.6% stake): continued growth Local World (38.7% stake): 3 months in HY 2013 (completed 30 Dec 12) Loss making Xceligent: associate in HY 2013, consolidated within dmg information in HY 2014 FY 2014 Outlook: at least 30m 2014 DMGT 19

20 ZOOPLA PROPERTY GROUP Intention to float HY 2014 HY 2013 Change Revenue ( m) % Adjusted EBITDA ( m) % Average monthly visits (m) % Expect to float at least 25% of existing shares; no new shares All existing major shareholders participating Trading on the LSE expected to commence in June 2014 Discounted offer open to eligible existing clients 1 year lock-up for key management 6 month lock-up for existing major shareholders 2014 DMGT 20

21 NET FINANCE COSTS million HY 2014 HY 2013 Net interest payable Investment income - (2) Total Items excluded from adjusted results: Premium on bond redemption 24 - IAS19 revised finance costs 4 7 Net interest payable lower; reduced bond debt 24m premium on December 2013 bond buy back 2014 DMGT 21

22 ADJUSTED RESULTS million HY 2014 HY 2013 Change Adjusted operating profit % Joint ventures and associates 17 8 Net finance costs (26) (25) Adjusted profit before tax % Taxation (30) (24) Minorities (12) (13) Adjusted earnings % Adjusted EPS 29.4 p 24.4 p +20% Adjusted tax rate 19.5% 18.2% 2014 DMGT 22

23 EXCEPTIONAL ITEMS million HY 2014 HY 2013 Reorganisation, redundancy and consultancy * (12) (9) Earn-out / deferred consideration credit/(charge) * 2 (3) Accelerated depreciation and impairment of plant - (9) Northcliffe pension curtailment - 4 Exceptional operating costs (10) (18) Amortisation of intangible assets (20) (16) Impairment of intangible assets & goodwill (14) (5) Profit on sale of assets Other non-operating items (7) (13) Pre-tax exceptionals (9) 10 Reorganisation and redundancy costs principally at dmg media: delivering cost savings and supporting future margin Outlook: cash exceptional items of c. 20m for full year, primarily dmg media *Cash items 2014 DMGT 23

24 m NET DEBT BRIDGE 900 Cash conversion 30% Net debt : EBITDA 2.0x Opening net debt Operating cash flow Taxation Pensions Interest Dividends RMS capex Bond buy back premium M&A Debt Revaluation Closing net debt Operating cash flow is stated after capex of 35m and exceptional operating items of 12m Seasonal cash flow exacerbated by Euromoney CAP ( 16m) and growth of seasonal cash flow businesses Full Year operating cash conversion expected to be strong; Sep 14 net debt:ebitda expected to be 2.0x Cash conversion percentage represents operating cash flow as a percentage of operating profit M&A excludes proceeds from Broadbean and Jobrapido disposals, received in April DMGT 24

25 NET DEBT Net debt:ebitda ratio of 2.0x targeting 2.0x m Half year net debt: EBITDA 2.0x 1,200 1, m 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 DMGT 25

26 NET DEBT Strong funding position Bonds Coupon m December % 263 April % 109 June % 196 Derivatives (2) Facilities 255 Other debt 3 Less: Cash in hand (30) Net Debt Bank facilities Facility Letters of credit Drawings Undrawn Expiring March (2) (255) 223 S&P Investment grade status regained March 2014 Facilities extended to 2019 and increased from 300m to 480m US$862m of 793m net debt effectively US$ denominated as at 31 March (FX rates: $1.62 on 30 Sep 13 and $1.67 on 31 Mar 14) 2014 DMGT 26

27 HY 2013 RMS dmgi ¹ dmge Euromoney dmg media Central Costs Zoopla & Other Interest DIIG & Xceligent ² Northcliffe & Local World HY 2014 Adjusted PBT: HY 2013 to HY 2014 Bridge 160 m M&A ¹ dmgi increase of 7m excludes DIIG and Xceligent ² DIIG & Xceligent increase of 1m includes 4m from DIIG and (3)m from Xceligent, reflecting the consolidation of 100% of Xceligent s losses, following its change from associate to subsidiary in Oct DMGT 27

28 FACTORS IMPACTING H Adjusted PBT Declining circulation revenues & increased newsprint cost Planned ramp up of RMS(one) costs notably data centres Adverse FX impact strong pound 2014 DMGT 28

29 REVENUE AND PROFIT OUTLOOK Outlook for the Full Year in line with market expectations* Others Corporate costs in line with FY 2013; margin outlook figures are stated pre allocation of Corporate costs No pension finance credit in FY2014; net finance charge of c. 50m FY 2013 Full Year Outlook FY 2014 Underlying revenue Revenue Margin Margin growth Core:mid-single digit % Risk Management Solutions ¹ 175 m 32% RMS(one): c. 5m Around 25% dmg information 293 m 20% 10% to 15% High teens % dmg events ² 87 m 24% At least 15% Around 25% Euromoney 405 m 29% As per Euromoney dmg media ³ 793 m 10% Stable At least 10% ¹ RMS(one) revenue expectation reduced from 15-25m following postponement of full launch to Q1 FY2015. Operating margin guidance unchanged and operating profit still expected to be in the 45-50m range. ² Underlying revenue growth of at least 15%, compared to previous guidance of 10-15%. Reported revenue growth is still expected to be in the 10-15% range. ³ Margin guidance increased from Around 10% to At least 10%. Stable means in the range of -2% to +2%. * Current analyst expectations for FY 2014: Adjusted PBT m, average of 286m and adjusted basic EPS 51.7p to 58.0p, average of 54.3p DMGT 29

30 FINANCIAL SUMMARY Adjusted numbers million HY 2014 HY 2013 Change Underlying Revenue % +6% Operating profit % +21% Profit before tax % Operating margin 17% 16% Earnings per share 29.4 p 24.4 p +20% Dividend per share 6.2 p 5.9 p +5% Revenue up 2%, underlying up 6% good growth in B2B (+11%) and Consumer up (+1%) Operating profit up 21% underlying Margin improvement to 17% Profit before tax up 16% EPS up 20%, Dividend up 5% Profit before tax growth of c.+19% at constant FX rates 2014 DMGT 30

31 2 BUSINESS UPDATE MARTIN MORGAN, CHIEF EXECUTIVE

32 BUSINESS UPDATE Key Activities Portfolio Management B2B Consumer Benefits of diversification 2014 DMGT 32

33 PORTFOLIO MANAGEMENT M&A Acquisitions: FY M FY M FY M FY M FY 2014 To 31 Mar - 115M Calnea OnGeo Xceligent First Search DIIG Arete BuildFax Intelliworks Beat the GMAT Energytics Globrix Foresight Analytics PrepMe Edumate Quartz Coatings Ned Davis Research Spring Rock National Transcript Center Infrastructure Journal Global Grain Vessel Tracker Petrotranz * Jobrapido Insider Publishing iprof * Praedicat * Centre for Investor Education Bolt-on Adjacent TTI / Vanguard HSBC's Quantitative Techniques Cougar Software* Disposals: FY M FY M FY M FY M * Investments in associates FY 2014 To 31 Mar - 27M 2014 DMGT 33

34 ACTIVE PORTFOLIO MANAGEMENT Acquisitions & Disposals FY14 to date H1 ACQUISITIONS 115m¹ DIIG (dmg information) Energytics (Genscape) Quartz Coatings (dmg events) Infrastructure Journal (Euromoney) H1 DISPOSALS 27m² OilCareers & Broadbean DISPOSALS: H2 14 TO DATE Jobrapido & Jobsite³ MIS Training ¹ Includes purchases of Zoopla Property Group shares iprof (10% stake, Hobsons) Petrotranz (33% stake, dmg information) ² Excludes proceeds from Broadbean disposal, received in April 14 Zoopla IPO announced ³ Jobsite disposal expected to complete Q4 calendar Total proceeds from Evenbase (OilCareers, Broadbean, Jobrapido & Jobsite) expected to be 150m DMGT 34

35 BALANCED CAPITAL ALLOCATION Strong balance sheet flexible capital allocation to create shareholder value Invest in organic growth Targeted acquisitions Real dividend growth Pension fund contributions Share buy backs Bond buy backs 2014 DMGT 35

36 B2B Strong core business Long term potential of RMS(one) 2014 DMGT 36

37 B2B Double digit growth in 3 of the 4 verticals Property information: - DIIG acquisition - Xceligent subsidiary Bolt-on acquisitions & strategic investments 2014 DMGT 37

38 B2B Successful conversion of biennial events to shorter cycles Record visitor numbers Geo-cloning complemented by Quartz Coatings acquisition 2014 DMGT 38

39 B2B Continuing M&A Delphi investment in digital publishing & information services Challenging market conditions in banking sector; improving asset management sector 2014 DMGT 39

40 CONSUMER Sustaining performance of Mail newspapers Investing in MailOnline Improving performance at Metro Cost management Evenbase exit focusing on core Mail businesses 2014 DMGT 40

41 CONSUMER JV s & Associates Zoopla Property Group DMGT first invested in online property vertical in FY 2005; ZPG formed May 2012 DMGT s stake is 52.6%, DMGT s total investment < 80m ZPG IPO announced today Local World Encouraging performance 2014 DMGT 41

42 BENEFITS OF DIVERSIFICATION 2014 DMGT 42

43 B2B & CONSUMER DIVERSITY million Share of total HY 2014 HY 2013 Change Underlying Revenues B2B 57% % +11% Consumer 43% (12%) +1% 100% % +6% Profits* B2B 74% % +12% Consumer 26% % +61% 100% % +21% REVENUE OPERATING PROFIT* Consumer 43% B2B 57% Consumer 26% 74% B2B * Profits include Corporate costs, allocated on a revenue basis. HY 2013 figures include Northcliffe Media DMGT 43

44 GEOGRAPHICAL SPLIT million Share of total HY 2014 HY 2013 Change Underlying Revenues UK 58% % +5% North America 31% % +5% Rest of World 11% (1%) +16% 100% % +6% Profits UK 43% % +53% North America 40% (5%) (2%) Rest of World 17% % +30% 100% % +21% Figures are by source, based on the location of the companies. Export sales and related profits are included in the geographies from which those sales are made rather than destination DMGT 44

45 DMGT: DELIVERING OUR GROWTH STRATEGY Active portfolio management to continue B2B organic growth enhanced by acquisitions and investment Continued strength of Mail brands across range of consumer platforms Strong balance sheet maintained 2014 DMGT 45

46 SAVE THE DATE: DMGT INVESTOR BRIEFING THURSDAY 18 SEPTEMBER 2014, P.M. THE BREWERY, LONDON 3 QUESTIONS

47 4 APPENDIX

48 UNDERLYING ANALYSIS Revenues HY 2014 HY 2013 million % Underlying M&A Other Actual Underlying M&A Exchange Other Actual B2B RMS +8% (3) - 85 dmg information +15% (2) dmg events +28% (2) (4) 57 Euromoney +3% 190 (6) (4) % (11) (4) 461 Consumer dmg media +1% 389 (9) (1) (16) - (3) 406 Northcliffe Media (49) % 389 (9) (1) (65) - (3) 454 Total +6% 921 (9) (1) (30) (11) (7) 915 Note: M&A includes disposals (e.g. central and eastern European businesses, OilCareers, Broadbean and Northcliffe Media), acquisitions (e.g. DIIG, First Search, Insider Publishing) and the transition of Xceligent from an associate to a subsidiary. Acquisitions are completely excluded from Euromoney s underlying results whereas dmg information and dmg events s underlying growth rates include the organic growth from acquired businesses. Other adjustments include timing of events and the discontinuation of dmg media s contract printing and distribution services DMGT 48

49 UNDERLYING ANALYSIS Adjusted operating profit million % Underlying M&A Other Actual Underlying M&A Exchange Other Actual B2B RMS (1%) (1) - 31 dmg information +46% (1) (1) - 19 dmg events +21% (2) 20 Euromoney +3% 51 (2) (1) (1) (2) 53 Consumer HY 2014 HY % 128 (2) (1) (1) (3) (4) 124 dmg media +44% 49 (1) (2) Northcliffe Media (7) % 49 (1) (9) Corporate costs (3%) (21) - - (21) (21) (21) Operating profit +21% 156 (3) (1) (10) (3) (4) 146 Note: B2B and Consumer operating profits are stated before allocating Corporate costs. Including Corporate costs the underlying growth rates for B2B and Consumer were +12% and +61% respectively DMGT 49

50 GEOGRAPHICAL ANALYSIS million RMS dmgi dmge Euromoney dmg media Total Revenue UK North America Rest of World Figures are by source, based on the location of the companies. Export sales are included in the geographies from which those sales are made rather than destination DMGT 50

51 CATEGORY ANALYSIS Revenues million RMS dmgi dmge Euromoney dmg media Total Advertising - print digital Circulation Subscriptions Events, conferences and training Transactions & other DMGT 51

52 ADVERTISING REVENUES Underlying growth: Digital increase exceeds print decline million % of total HY 2014 HY 2013 Change Underlying UK National newspapers 57% (5%) (5%) UK Regional newspapers 0% - 30 (100%) Euromoney 8% (5%) (2%) Other 0% 1 3 (75%) Total print 65% (20%) (5%) UK News websites (MailOnline & Metro) 13% % +48% UK Consumer websites 18% % +6% Euromoney 1% % +19% Other 2% 5 9 (43%) +30% Total digital 35% % +21% Total advertising 100% (12%) +3% 2014 DMGT 52

53 Increasing frequency of events FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Big 5 Dubai A A A A A A ADIPEC B B A A Global Petroleum Show B B B A Gastech B B 18M INDEX A A A A A A A FY10 FY11 FY12 FY13 H1'14 Revenues m m m m m Total for major events Other events Disposals: GLM Evanta Total including disposals A 18M B Key Annual 18 Months Biennial Stated at actual rates 2014 DMGT 53

54 CAP Grant to be made in H2 FY 2014 Profit target 173.6m by 2017 (adjusted PBT before CAP cost), subject to M&A adjustments Funded by purchase of 3.5m Euromoney shares and balance in cash 1.3m shares acquired to date Total cost 41m spread over period to FY20 as follows: million FY14 FY15-17 FY18 FY19 FY20 CAP cost DMGT 54

55 Underlying advertising revenue trends million % Q1 Q2 Half Year Newspapers 66% % v last year (4%) (5%) (5%) Newspaper websites 15% % v last year +49% +47% +48% Subtotal 80% % v last year +3% +1% +2% Digital businesses 20% % v last year +13% +0% +6% Total 180% % v last year +5% +1% +3% Percentages show underlying variances. The digital and total percentages exclude revenues from the OilCareers and central and eastern European businesses, which have been disposed of DMGT 55

56 Advertising revenue quarterly trends % of total Q1 v PY Q2 v PY HY14 v PY Retail 25% (4%) (21%) (11%) Travel 12% (10%) +3% (2%) Entertainment 10% +33% +24% +29% Finance 8% (4%) +6% +1% Telecoms 6% (10%) (8%) (9%) Motors 4% (1%) +4% +2% Mail Order 4% (4%) +3% (1%) Others 31% +12% +15% +13% Total 100% +3% +1% +2% Note: UK newspaper titles, including companion websites. Excludes other digital businesses such as Evenbase and Wowcher 2014 DMGT 56

57 millions PENSION DEFICIT FUNDING PLAN 70 64m 60 Xm Total Recovery Plan Amounts m 37m 31m 36m 13m 3m 34m 34m 34m 5m 5m Xm Total Actual Payments Northcliffe disposal m 11m 29m 29m 29m 7m 12m 7m Offset recovery payments Share buy back/other Amounts in pink boxes show the agreed Recovery Plan amounts. Blue bars show the actual and agreed Recovery Plan payments. Purple bars show the agreed Recovery Plan payments that can be offset against other contributions Recovery Payments Green & Grey bars show other funding payments, in addition to the Recovery Plan payments. 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 c. 5m p.a. to 2022 on Offset recovery payments; contributions cease once actuary agrees schemes are not in deficit IAS19 deficit at 31 March 2014 = 162m ( 208m at 30 September 2013) Future payments in excess of recovery plan dependent on share buy backs, M&A affecting schemes or pensions liability management, plus other minor contributions. All offsettable against the Offset recovery payments. Additional future payments equivalent to 20% of share buy backs, though can be partly offset by up to 5m of annual funding ( Offset recovery payments ) 2014 DMGT 57

58 Pence DIVIDEND GROWTH CONTINUES 20 year CAGR: 9% p p 6.6p Dividend Inflation FY14 Interim dividend of 6.2 pence up 5.1% 2014 DMGT 58

59 Sep-93 Mar-94 Sep-94 Mar-95 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 SHARE PRICE PERFORMANCE The 20 year view excluding dividend reinvestment DMGT 'A' Shares FTSE 'All Share' 2014 DMGT 59

60 THANK YOU DMGT Northcliffe House 2 Derry Street, London W8 5TT UK T +44 (0) F +44 (0)