Bloomsbury Publishing Plc

1
Bloomsbury Publishing Plc
2002 Annual Results
2
Highlights

• Results ahead of upgraded market consensus
• Invested in and broadened portfolio for future
  organic growth
• 5 Acquisitions complementary to core businesses
• Outstanding publishing list for 2003 and 2004
• Confidence in the future supported by strong cash
  generation
• Additional turnover analysis

3
2002 Financial Highlights

• Good organic growth
• Turnover increased by 11.3 to 68.02m (2001,
  61.14m)
• Pre-tax profit before goodwill increased by 18.9
  to 11.12m (2001 9.35m)
• Basic earnings per share before goodwill
  increased by 20.2 to 46.17 pence (2001, 38.41
  pence)
• Dividend increased by 13.8 to 7.17 pence for the
  year (2001, 6.30 pence)
• Net cash excluding loan note deposits increased
  23.8 to 18.58m (2001, 15.01m)

4
Turnover And Gross Profit Growth1998 to 2002
11.3
5
Operating And Pre-Tax Profit 1998 to 2002
18.9
19.7
The figures are stated before goodwill
amortisation.
6
Basic Earnings Per Share Growth 1998 to 2002
20.15
The figures are stated before goodwill
amortisation.
7
Financial SummaryConsolidated Balance Sheet
31st December
31st December

Cash on deposit includes 0.594m (2000, 1.779m)
set aside for AC Black loan note holders.
8
Cash Flow
9
Turnover Analysis By Publishing Category
Childrens Frontlist titles in print -
183 Backlist titles in print - 787
_____ Total titles in print
970
2002
Childrens - 970 titles
Reference-2,444 titles
Adult - 1,847 titles
Reference Frontlist titles in print -
274 Backlist titles in print - 2,170
_____ Total titles in
print 2,444
Adult Frontlist titles in print - 272 Backlist
titles in print - 1,575
_____ Total titles in print 1,847
10
Turnover Analysis By Publishing CategoryWith
Comparison To Previous Year
2001
2002
Childrens
Childrens
Reference
Adult
Adult
Reference
2001 Reference 9.300m Adult 10.616m Children
s 41.224m Total 61.140m
2002 Reference 12.661m 36.1 Adult 17.205m 6
2.1 Childrens 38.150m - 7.5 Total 68.016m
11.3
Change
11
Turnover Analysis By Sales ChannelWith
Comparison To Previous Year
2001
2002
2001 Home 37.532m Export 18.201m USA Trade
3.207m Rights 2.200m Total 61.140m
2002 Home 47.244m 25.9 Export 13.478m
-25.9 USA Trade 3.808m
18.7 Rights 3.486m 58.5 Total 68.016
m 11.3
Change
12
Investing For The Future

• Continued investment in titles to maintain level
  of organic growth. Success of portfolio
  management strategy.
• Rigid controls applied to book acquisition
  process - profit and loss, advance earn out.
• Five complementary acquisitions.
• Strong balance sheet and cash generation to
  support future organic and acquisition growth.

13
Investment In Future Years Titles
Investment increased 55.6 over 2001
55.6
57.9
14
Organic InvestmentResearch And Development -
Identifying Future Bestsellers
Sunday Telegraph Bestseller list March 9th 2003

• Case Study
• Schotts Original Miscellany
• First time author
• Third biggest 2002 seller for Bloomsbury
• 12 weeks at number 1 on bestseller list
• To be published by Bloomsbury in the US in August
  2003
• Two more books to come in the series
• Schotts Food and Drink Miscellany- November
  2003
• Schotts Sport Miscellany - 2004 to tie in with
  Olympics and Euro 2004 Football Championships

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Organic InvestmentAdult - Success With Major
Author Acquisitions
The Daily Telegraph Bestseller List November 2nd

• Case Study - Donna Tartt
• Why she came to Bloomsbury
• Donna Tartt on bestseller list for 10 weeks
• Second biggest selling author for Bloomsbury in
  2002
• Lead paperback in 2003 and hugely valuable
  addition to backlist in 2004
• Winner of award for best marketing campaign of
  2002
• Its success has increased Bloomsburys profile as
  a publisher of major commercial titles

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Organic InvestmentReference

• Case Study - Business - The Ultimate Resource
• Reached number 2 position on Amazon.co.uk
  bestseller list
• 8 electronic partners including economist.com,
  London Business School
• 6 foreign language partners
• Derivative title publishing programme to start in
  2003

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Organic InvestmentChildrens

• Childrens fiction market growing
• 36 US titles published in 2002
• 51 US titles to be published in 2003
• Bloomsbury are a market leader in content and
  style and were the innovators of simultaneous
  adult editions of childrens books
• Holes - film tie in for July 2003 - Jon Voight,
  Sigourney Weaver and Patricia Arquette

18
Acquisition Strategy - Companies

• Identifying larger acquisitions
• Opportunities for smaller strategic acquisitions
• Complement existing lists within the Group
• Use existing overhead structure to run operations
• Mainly reference based with strong backlist
  performance

19
Acquisition Strategy - Databases

• Buying in content to speed up database creation
  process
• Identifying acquisition opportunities
• Acquiring under-exploited lists and databases for
  development
• Time and cost of database development
  significantly reduced
• Acquiring existing brands

20
Acquisitions Made In Last 12 Months

• Already market leading nautical and ornithology
  publishers
• Consolidated our powerful position as reference
  and educational publishers

• Category Consideration
• Whitakers Almanack Reference 766,000
• TD Poyser Ornithology 316,000
• Peter Collin Publishing Reference
  703,000
• Thomas Reed Publications Nautical
  277,000
• Andrew Brodie Publications Educational
  740,000

21
Acquisition IntegrationPeter Collin Publishing

• A new reference area for Bloomsbury
• Fully integrated by the end of 2003
• All new titles will be branded under the
  Bloomsbury imprint from July 2003
• Planned launch of Bloomsbury reference in the USA
  for 2004

22
Acquisition Integration Whitakers Almanack

• 58 uplift in sales over 2001
• Strong new jacket image
• Aggressive marketing campaign
• Looking at more commercial derivative titles for
  adult and childrens markets

23
Acquisition Integration Whitakers Almanack-
Exploiting The Brand

• Electronic exploitation - Pro Quest - 285,000
  over 5 years
• Derivative titles for 2004
• Concise edition rrp 20.00
• Olympic edition rrp 16.99
• Scottish Almanack rrp 24.99
• Pocket Reference rrp 7.99

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Whitakers AlmanackContribution In 2002
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Future Growth OpportunitiesSports List - New
Opportunity

• Health and fitness market is a huge growth area
• AC Black sports list innovative, commercial and
  dynamic
• Sales of list 766k (2001, 630k)
• Potential significant revenue generator
• New deal with Press Association for sports
  statistics publications

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Future Growth OpportunitiesHarry Potter -
Established Opportunity

• Harry Potter and the Order of the Phoenix to be
  published on 21st June.
• Worldwide launch
• Foreign translations published from December
  which will allow us to maximise sales of
  Bloomsbury English language edition
• First time adult and childrens hardbacks
  published simultaneously
• Multipacks enabling up-sell
• Major presence in supermarkets

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Outlook

• Outstanding list for 2003
• JK Rowlings Harry Potter and the Order of the
  Phoenix to be published on 21st June 2003
• Adult titles moved into 2004
• New hardbacks from Margaret Atwood, Sophie Dahl
  and Ben Schott in 2003
• Hardbacks published in 2002 are out in paperback
  in 2003 - Donna Tartt, Ethan Hawke and Jeffry
  Eugenides
• Looking at selected acquisitions in core
  publishing areas
• 2004 benefit

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Summary

• Delivering good shareholder returns
• Sound, defensive and broad portfolio of
  properties driving future organic growth
• RD function successfully identifying authors of
  quality and building them into bestsellers
• Track record for identifying, acquiring and
  integrating businesses that complement the
  Groups three core business areas
• Outstanding publishing list for 2003 and 2004
• Well positioned in three key publishing markets
  with good visibility into 2004