Intelligent Media

1
Intelligent Media June 2004
2
UBM is a leading provider of business information
services to major industries including
Healthcare Technology Media Automotive
Property
3
United Business Media

• Background
• Performance against Strategy
• Latest Financial Performance
• Investing in Growth
• Operations
• Summary

4
Group Structure
5
Geographic Segmental Analysis 2003
Pacific 5
Pacific 11
EMEA 5
EMEA 13
US 60
UK 30
US 51
UK 25
Revenue
Operating Profit
6
Segmental Analysis
FY 2003
6
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Strategy

• A focused business information group, serving key
  business sectors
• Committed to superior operating performance
• Increasing level of investment in product
  development to build competitive advantage
• Acquisitions to extend product range and
  geographical coverage

8
Performance against strategy

• Delivery
• 15 margin to be hit in 2004
• Reduced 2000 cost base by 30
• 3 years of cash conversion 100 or above
• Strong balance sheet
• Strategic, well priced acquisitions strengthening
  core franchise
• Yields defended
• Monetising investments underway
• Developed and bought must have products

• Strategic Objectives
• Performance target
• 15 medium term margin
• Tight financial discipline
• Growth target
• Investment in core franchise
• Market share gains
• Yield improvements
• Monetise investment portfolio

9
Operating Division Performance

• Fundamentally re-engineered and reduced CMPs
  cost base
• Moving towards best in class margins, at CMPi
• Focusing PRN on its core wire business
• Restructuring NOP - focus on key sectors,
  strengthen product offering
• Proven offline business model at UAP, challenge
  to grow auto online
• Successful launch activity in Asia, acquisition
  in Japan

10
Financial Results
2003
2002
Change
Underlying


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
10
before amortisation of intangibles and goodwill
and prior year exceptionals
11
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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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
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Trading Outlook Prelims AGM

• Publications and exhibitions
• Improving tech climate
• Asia returns to pre-SARS volumes
• News distribution
• Volumes and yields improving
• Eliminating losses in Europe
• Acquisitions delivering
• AGM

• Growth in healthcare
• UK business growing margins
• Market research
• Growth in year end order book
• Restructuring to improve margin and revenue
  growth

2004 has started well. All of our businesses
are performing ahead of last year, consistent
with the positive trends of the second half of
2003. We expect to achieve our medium term
target of 15 per cent this year.
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Strategy Building on core franchiseMarket
sector / multi-channel product grid
Top 5 Moderate
Top 10-20 Limited
1-2 Player Strong
Key to market presence
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15
Strategy Extending UBMs reach Geography /
multi-channel product grid
Top 5 Moderate
Top 10-20 Limited
1-2 Player Strong
Key to market presence
15
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Investing in Growth

• Net debt capacity around 500m
• February 2004, ie prior to MediMedia
• 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
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)
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Healthcare in UBM

• Key sector 23 of group revenues post-MediMedia
• Professional Media - Healthcare
• Publications in US and UK
• CME in US
• Exhibitions in Asia
• NOP World Healthcare
• 25 of UBMs market research revenues
• PR Newswire
• News channel for pharmacos Health/Biotech
  Newsline

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CMP Healthcare - MediMedia

• Set to acquire healthcare businesses from
  MediMedia
• Drug information in Europe and Asia
• Trade press in Germany, Benelux and Asia-Pacific
• Pharma marketing solutions, patient education
• 21 countries
• Extends UBMs geographical and product reach
• Strong and consistent growth trends
• Recurring revenues, high quality earnings
• Products with 1 positions in their markets
• Healthcare and tech both around a quarter of
  group revenue
• Potential revenue synergies with other UBM
  healthcare

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Operating Margin Performance
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Professional Media CMP Media
2003
2002
Change
Turnover (m)
(11.6)
210.5
238.2


Operating Profit (m) Operating Margin ()

317.6 -
14.8 7.0
(6.8) -
23
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
• AGM
• Underlying revenue 3 per cent ahead
• Yields strengthening
• Strong performance in online events

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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

27
Professional Media CMP Asia
2003
2002
Change
Turnover (m)
(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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Asia Pacific Leather Fair 2004Strong attendees
after SARS cancellation in 2003

• 60,000 attendees
• From 95 countries
• 70 Hong Kong hotel capacity
• Global Brands
• VF Corporation
• Sears Roebuck
• JC Penney
• Gap
• Neiman Marcus
• Ralph Lauren
• Liz Claiborne

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Professional Media CMPi
2003
2002
Change
Turnover (m)
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)
0.0
58.1
58.1



Operating Profit (m) Operating Margin ()

10.2 10.2
14.0 24.1
12.7 21.9
33
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


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 leverageAGM
• 7 volume increase
• Improved yields

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NOP World - Market Research
2003 m
2002 m
Change

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
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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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UBM Record

• Strong operational performance
• Consistency - sticking to the strategy
• Strong cost control
• Effective restructuring of the operating units
• Hit margin performance targets
• Improving acquisition record
• Generally positive organic investment performance
• Strengthened financial base

40
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