Thursday 18 September - Growth through Digital Innovation Martin Morgan, Chief Executive Stephen Daintith, Finance Director - DMGT
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Thursday 18 September Growth through Digital Innovation Martin Morgan, Chief Executive Stephen Daintith, Finance Director
IMPORTANT NOTICE
Certain statements in today’s presentations are forward Today’s presentations do not constitute or form part of
looking statements, beliefs or opinions or statements any offer or invitation to sell, or any solicitation of any offer
relating to risks and uncertainties, including statements to purchase any shares in the Company, nor shall they or
as to the Group’s business, financial condition and any part of them or the fact of their distribution form the
results of operations. By their nature, forward looking basis of, or be relied on in connection with, any contract
statements involve a number of risks, uncertainties or or commitment or investment decisions relating thereto,
assumptions that could cause actual results or events to nor do they constitute a recommendation regarding the
differ materially from those expressed or implied by the shares of the Company.
forward looking statements. These risks, uncertainties or Past performance cannot be relied upon as a guide to
assumptions could adversely affect the outcome and future performance.
financial effects of the plans and events described
herein. Forward looking statements contained in
today’s presentations regarding past trends or activities
should not be taken as representation that such trends
or activities will continue in the future. The Group
undertakes no obligation to release any update of, or
revisions to, any forward-looking statements, opinions
(which are subject to change without notice) or any
other information or statement contained in this
presentation. Furthermore, past performance of the
Group cannot be relied on as a guide to future
performance. You should not place undue reliance on
forward looking statements, which apply only as of the
date of this presentation.
© 2014 DMGT | 1
TODAY’S AGENDA
Balanced Capital Allocation
Stephen Daintith
RMS
Hemant Shah & Matthew Grant
Euromoney
Christopher Fordham, Ben Jones, Bashar AL-Rehany & Simon McLoughlin
MailOnline
Martin Clarke, Jon Steinberg, Mel Scott & Richard Caccappolo
Drinks Reception
© 2014 DMGT | 2
KEY THEMES
Innovation Technology
Digitisation of Financial Strength
content
© 2014 DMGT | 3
STEPHEN DAINTITH
FINANCE DIRECTOR
© 2014 DMGT | 4DMGT
Capital Allocation
RMS
© 2014 DMGT | 5BALANCED 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 | 6TARGET ≤2.0X NET DEBT:EBITDA RATIO
Operating cash flow
Zoopla proceeds of £179m
Evenbase proceeds of £150m
Acquisitions during FY 2014 of c.£175m
Share buy backs of £31m (completion of original £100m programme)
Bond buy back premium of £24m
At 2.0x EBITDA, >£300m available for Capital Allocation
© 2014 DMGT | 7INVESTMENT PREFERENCES
New
Organic Bolt-on Adjacent sector
© 2014 DMGT | 8PORTFOLIO MANAGEMENT
M&A
Acquisitions:
FY 2014
FY 2010 – £37M FY 2011 – £94M FY 2012 – £75M FY 2013 - £93M
To 31 Aug - £175M
Calnea OnGeo Xceligent First Search DIIG
Arete BuildFax Intelliworks Beat the GMAT Energytics
Globrix Foresight Analytics PrepMe Edumate Quartz Coatings
National Transcript
Ned Davis Research Spring Rock Infrastructure Journal
Center
Global Grain Vessel Tracker Mining Indaba
Jobrapido Insider Publishing SiteCompli
Centre for Investor
Praedicat * iProf *
Education
Bolt-on TTI / Vanguard Skymet *
HSBC's Quantitative
Adjacent
Techniques
Cougar Software*
Disposals:
FY 2014
FY 2010 – £81M FY 2011 – £125M FY 2012 – £117M FY 2013 - £88M
To 31 Aug - £262M
* Investments in associates © 2014 DMGT | 9DIVIDEND GROWTH CONTINUES
20 year CAGR: 9%
20 19.2p
18
16
14
12
Pence
10
8
6 6.6p
4 3.7p
2
0
1993 2013
Dividend Inflation
FY14 Interim dividend of 6.2 pence up 5.1%
© 2014 DMGT | 10PENSION DEFICIT FUNDING PLAN
Funding plan agreed in February 2014
c.£34m p.a. to 2020 (c.£28m p.a. to 2022 and
c.£23m p.a. to 2026)
Reduced IAS 19 deficit of £162m as at 31
March 2014
© 2014 DMGT | 11SHARE BUY BACK
Original £100m share buy back programme
Announced November 2012
Completed September 2014
Average price of £7.09 per share
New £100m share buy back programme
On market
M&A remains the priority
© 2014 DMGT | 12NET DEBT
Net debt:EBITDA ratio comfortably below 2.0x
£m
1,200
1,000
800
600 3.5
2.9
2.7 3.1 2.8
2.4
2.3 2.2
400 2.3 2.0
2.0 1.9
1.6 1.5
200
0
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
© 2014 DMGT | 13NET DEBT POSITION
Bonds Coupon £m
December 2018 5.75% 263
April 2021 10.0% 109
June 2027 6.375% 196
Total Bond Debt as at 31 Mar 2014 568
£480m of bank facilities expiring March 2019
Debt management flexibility
© 2014 DMGT | 14RMS
© 2014 DMGT | 15RMS(ONE) PRODUCT
Balance sheet asset
Balance sheet carrying value of c.£85m as at Sep’14
(c.£35m capex in FY 2014)
Material impairment of the c.£85m in FY2014
Materially lower capitalisation in FY2015 (vs.£35m)
© 2014 DMGT | 16RMS(ONE) OUTLOOK – KEY DRIVERS
Significant revenues and amortisation costs
commence in FY 2016
Reduced capitalisation and increased data
centre costs in FY 2015
RMS’s total operating margin likely to be
c.10-15% in FY 2015 vs. c.25% in FY 2014
© 2014 DMGT | 17SUMMARY
Strong balance sheet
Balanced and flexible capital allocation
Plenty of opportunity for organic investment and M&A
RMS(one) setbacks but confident of long-term prospects
Diverse portfolio with good long-term growth potential
© 2014 DMGT | 18THANK YOU DMGT Northcliffe House 2 Derry Street, London W8 5TT UK T +44 (0)20 7938 6000 F +44 (0)20 7938 4626 www.dmgt.com
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