Bloomsbury Publishing Plc

1
Bloomsbury Publishing Plc
2005 Annual Results
2
Highlights

• Profit expectations met with significant
  successes
• Successful launch of Harry Potter and the
  Half-Blood Prince
• Good performance from Bloomsbury Paperbacks
• Schotts series now annualised into Almanac
• Increase in commissioning editors
• 2 Richard Judy selections and 2 Orange Prize
  long-listings
• Berlin Verlag moves into profit
• Successful integration of Walker Publishing in
  USA
• Gordon Brown joins Bloomsbury list
• Launch of electronic download initiative today
• Strength of 2006 list and 2007 signings
• Up to 15m allocated for advances for new
  publishing area in music, TV, film and sport
  David Dimbleby tie-in for 2007

3
2005 Financial Highlights

• Turnover increased to 109.11m (2004, 84.45m)
• Pre-tax profit before goodwill and exceptional
  gain increased to 20.13m (2004, 16.28m)
• Basic earnings per share before exceptional gain
  increased by 18.6 to 20.3p (2004, 17.12p)
• Total dividend increased by 20 to 3.6p for the
  year (2004, 3.0p)
• Cash increased to 53.51m (2004, 28.74m)

4
Turnover
Gross Profit
55.6m
109.1m
42.2m
84.5m
31.8
29.1
50.0
51.0
Gross Profit Margin
5
Operating Profit
Pre-tax Profit
20.1m
18.8m
15.0m
16.3m
25.3
23.3
The figures are stated before exceptional items.
6
Financial SummaryConsolidated Balance Sheet
2004
2005
m
m
30.2
Inventories
14.7
Receivables
86.4
Net cash
82.5
Total liabilities
21.5
Equity
Loan notes were fully redeemed during the year
(2004, 0.383m).
7
Cash Flow
8
Turnover Analysis by Geographic Segmentwith
Comparison to Previous Year
2005
2004
5
Europe
10
4
11
85
85
100
100
Change
UK 71.56m North America 8.99m Europe
3.90m Total 84.45m
UK 92.62m 29.4 North America 11.03m
22.7 Europe 5.47m 40.3 Total
109.12m 29.2
9
Operating Profit Analysis by Geographic Segment
with Comparison to Previous Year
Before re-organisation costs
10
Turnover Analysis by Publishing Categorywith
Comparison to Previous Year
2005
2004
Change
63
69.8
Childrens
48
-8.9
Adult
25
36
12
16
-7.8
Reference
_____
_____
100
100
11
Titles Published by Category
Change
Childrens 2004 2005 New titles published in
year - 250 283 Backlist titles in print -
1,142 1,582
_____ _____ Total Childrens
titles in print 1,392 1,865
13
39
34
Adult 2004 2005 New titles published in
year - 466 488 Backlist titles in print
- 2,719 3,345
_____ _____ Total Adult titles in print
3,185 3,833
5
23
20
Reference 2004 2005 New titles published in
year - 254 348 Backlist titles in
print - 2,788 3,042
_____ _____ Total Reference titles
in print 3,042 3,390
37
9
11
Grand total of titles in print
7,619 9,088
19
12
Investment In Future Years Titles as at 31
December
7.5
1.5
8.6
13
Childrens Division

• Harry Potter and the Half-Blood Prince a
  spectacular success
• Stimulated backlist sales
• Fourth film most successful in series
• Bloomsbury published HP audio edition for the
  first time in new joint venture
• Paperback of HP6 launched on June 23rd at time
  of Buckingham Palace Celebration of British
  Childrens Literature

14
Childrens Division

• Continuing focus on acquiring film and
  merchandising rights
• Royalty opportunities for merchandising as
  characters profiles build
• Building relationships with TV companies to
  acquire publishing rights to childrens TV
  characters and televising of Bloomsbury books

15
Childrens Division

• International publishing program with US and
  Germany is highly successful
• 75 of childrens books acquired are shared
  across countries
• Pre-school list launch in 2006
• Walker in USA and Berlin to publish Bloomsbury UK
  pre-school books in the US and Germany

16
Adult Division

• Big success with paperback list in 2005
• The Two of Us PB
• Jonathan Strange Mr Norrell PB
• The Kite Runner PB
• Success of The Two of Us has created
  opportunities to acquire similar high profile
  non-fiction
• Two books chosen for Richard Judy Book Club

17
Adult Division

• Identifying new revenue opportunities
• Chef-led cookbook market is big opportunity for
  Bloomsbury
• Acquired Heston Blumenthals TV Tie-in book
• Recruited Richard Atkinson from Hodder to develop
  new illustrated list and acquired Hugh
  Fearnley-Whittingstalls future titles
• Continue to expand editorial team by hiring top
  commissioning editors in their field
• Signing of the Blunkett Tapes by David Blunkett

18
Adult Division

• New market opportunities
• Big books are getting bigger
• The dominance of high profile publishing
• Growth in popular titles supported by
• Retail chains
• Bookshop promotions
• Media promotions

19
Adult Division

• Addition of publishing music, TV, film and sport
  titles
• Up to 15m allocated for advances for this new
  publishing area
• Natural development for Bloomsbury
• Considerable success of The Two of Us
• Track record with supermarkets with Harry Potter
• Capitalising on market developments
• Good use of strong balance sheet and cash
• Lower risk than frequently over-priced
  acquisitions
• First titles to include, Gary Barlow, Nicole
  Kidman, Dave Marshall on Bruce Springsteen and
  Amir Khan in 2006

20
Reference Division

• Expanding the Whitakers series of titles
• Whitakers World of Facts
• Strong support from Tesco and The Book People
• World record breakers
• Web link boxes
• Whitakers Little Book of Infinity
• Education
• Sales to schools increased
• Success of music list

21
The Download Future

• Electronic downloads of mainstream fiction and
  non fiction titles for payment
• 2006
• 20 titles
• Possibly up to 50 of fiction market as downloads
  within 10 years
• Development of Sony and Phillips e-book readers

22
Overseas Development
Bloomsbury USA / Walker

• Integration of Walker successfully completed
• Pooled resources of service departments to
  provide flexibility for growth
• Continuing to focus on reducing cost base
• Distribution
• New supplier agreements
• Paperback rights in Walker now retained to be
  published ourselves

23
Overseas Development
Bloomsbury USA / Walker

• Two new revenue channels being developed
• Mass market
• Jonathan Strange Mr Norrell
• Faerie Wars
• Exporting US books to open market export
  territories
• Use US distributors mass market and export sales
  forces

24
Berlin Verlag
Overseas Development

• Maiden operating profit of 0.64m (2004, loss
  0.50m) after two years investment
• Benefit in Germany from titles acquired by
  Bloomsbury UK international expansion
• Bloomsbury Berlin and Kinder lists show sharp
  growth and make significant contributions to
  revenue growth
• Focus on cost base
• Distribution
• New supplier agreements

25
Berlin Verlag
Overseas Development

• Projected to generate positive cash flow in 2006
• Launch of new childrens non-fiction list
• Continued profitability in 2006
• Improvement in paperback list
• Strong list going forward
• Ben Schott
• Joanna Trollope
• Peter Esterhazy

26
Summary and Outlook

• Harry Potter - major frontlist launches of new
  editions and formats for next 5 years
• Focussing on exploiting the publishing side of
  film and TV
• Pre-school list to start in 2006
• Increasing contributions from US and Germany

27
Summary and Outlook

• Exceptionally strong list for 2006
• Harry Potter 6 paperback
• Joanna Trollope
• Gary Barlow
• Amir Khan
• William Boyd
• William Dalrymple
• David Blunkett
• Expansion of publishing in areas of sport, film
  and music
• Digital downloads for the future
• 2006 strong start, in line with Boards
  expectations