23.9 pence - dmgt.com/media/files/d/dmgt/ir 2pager... · rms is the global market leader in...
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1. A portfolio of content-led businesses with leading positions in large, growing sectors that are benefitting from digitisation.
2. A strategy, based around clear portfolio roles, to deliver growth in revenues and profits, over the medium term, and improving cash generation.
3. A commitment to deliver continued real dividend growth, underpinned by a strong balance sheet, and sustained EPS growth.
B2BThe B2B portfolio is now comprised of four sectors: Insurance Risk, Property Information, EdTech and Events and Exhibitions.This follows the sale of Genscape, its Energy Information business, for US$364m in November 2019. In FY 2019, Genscape’s revenue, cash OI and operating profit were £74m, £12m and £8m respectively.
Revenue£738m2018 | £773m
Cash OI*£126m2018 | £131m
Operating profit£117m2018 | £128m
Underlying revenue growth+2%2018 | +3%
Cash OI margin*17%2018 | 17%
Operating margin16%2018 | 17%
Insurance Risk - Employees: 1,522RMS is the global market leader in catastrophe risk modelling. The business is investing in software, data, data analytics and applications. In 2019, RMS launched its Risk Intelligence software platform, which will aid its expansion into the high-growth Insurance Analytics market.
Revenue£244m2018 | £229m
Cash OI*£41m2018 | £50m
Operating profit£40m2018 | £35m
Underlying revenue growth+1%2018 | +5%
Cash OI margin*17%2018 | 22%
Operating margin17%2018 | 15%
Property Information - Employees: 920 In the UK, Landmark Information Group provides services that use technology, data and workflow to streamline, and help reduce the risk associated with, commercial and residential property transactions. Trepp, in the US, provides risk, valuation and data solutions for the commercial mortgage-backed securities market as well as tools, analytics and models for commercial real estate investors and lenders. The focus of the portfolio was increased during FY 2018 and FY 2019.
Revenue£222m2018 | £272m
Cash OI*£44m2018 | £48m
Operating profit£41m2018 | £58m
Underlying revenue growth(1)%2018 | (2)%
Cash OI margin*20%2018 | 18%
Operating margin19%2018 | 21%
EdTech - Employees: 390Hobsons, a US business, offers college, career and life readiness tools to middle and high schools; student match and fit solutions for college admissions offices; and a student success platform for colleges and universities to help guide students from enrolment through degree completion. Its Naviance product is available to over 13 million students.
Revenue£80m2018 | £68m
Cash OI*£8m2018 | £2m
Operating profit£4m2018 | £7m
Underlying revenue growth+12%2018 | +9%
Cash OI margin*10%2018 | 3%
Operating margin6%2018 | 11%
Events and Exhibitions - Employees: 396dmg events is an organiser of B2B exhibitions and conferences with industy-leading events in the energy, construction, interiors, hotel, hospitality and leisure sectors. Over 60% of revenues are generated by the top three events.
Revenue£119m2018 | £118m
Cash OI*£22m2018 | £28m
Operating profit£22m2018 | £28m
Underlying revenue growth+4%2018 | +5%
Cash OI margin*19%2018 | 24%
Operating margin19%2018 | 24%
Consumer Media - Employees: 2,301dmg media’s portfolio of news media businesses includes two of the UK’s most read paid-for newspapers, the Daily Mail and The Mail on Sunday; Metro, its free newspaper, which is the UK’s highest circulation weekday newspaper; and MailOnline, whose audience spends c.140m minutes engaged with its content each day. In November 2019, DMGT acquired the ‘i’, the UK national newspaper and website.
Revenue£672m2018 | £654m
Cash OI*£78m2018 | £77m
Operating profit£67m2018 | £64m
Underlying revenue growth+2%2018 | (4)%
Cash OI margin*12%2018 | 12%
Operating margin10%2018 | 10%
*Cash OI is cash operating income. This is EBITDA less capital expenditure and is considered a good guide to underlying cash generation.Joint ventures, associates and investmentsEuromoney Institutional Investor PLC DMGT’s holding in Euromoney was distributed directly to DMGT’s shareholders in April 2019 and Euromoney ceased to be an associate.
DMGT’s share of operating profit£23m2018 | £56m
OtherDMGT holds minority stakes in early stage businesses. DMGT owns c.45% of Yopa, the UK hybrid estate agent, and c.23% of Cazoo, which aims to change the way people buy used cars in the UK.
DMGT’s share of operating profit
£(10)m2018 | £(5)m
DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment. The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology and events & exhibitions. In total, DMGT generates revenues of around £1.3bn.
Total dividend 1989 – 20191 Inflation DividendWhy invest in DMGT?The shape of the business
Revenue
Operating profit
Revenue by destination
Operating profit by source
Business to Business 52%
Business to Business 64%
UK 53%
UK 48%
Consumer 48%
Consumer 36%
N.America 30%
N.America 36%
Other 16%
Other 16%
1 Dividend excludes £200m cash and £662m Euromoney distribution in Apr’19
2422201816141210864201989 2019
2.5p5.1p
23.9p
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Net cash / (debt)£247m* 2016 | £(679)m
The numbers that count: 3 years of progress
Dividend per share 23.9 pence2016 | 22.0p
Revenue£1,411m 2016 | £1,917m
* Net cash includes $364m gross proceeds on Nov’19 disposal of Genscape and excludes £117m which is being made available to pension schemes. Pension scheme surplus includes the £117m.All figures relate to FY 2019 and FY 2016.
Underlying revenue growth+2%2016 | 0%
Pension scheme surplus / (deficit)£332m*
2016 | £(246)m
Operating profit£144m2016 | £277m
Earnings per share38.6 pence2016 | 56.0p
Operating margin10%2016 | 14%
Cash operating income £162m2016 | £252m
Our Strategy Diverse revenue streams
Ordinary shares
(Voting)‘A’ shares*
(Non-voting) Total*
As at 30 Sep’19 20m 210m 230mFamily 100% 30% 36%Others – 70% 64%
• Many businesses operating in high potential markets with long-term growth characteristics.
• Content and proprietary data developed by businesses that constantly push the bar with their ‘product first’ mentality.
• A home for entrepreneurs who are encouraged to innovate with support and oversight from the centre.
• Diversified portfolio by sector, geography and type of revenue stream, built on strong brands and market-leading positions.
• Long-term perspective provides foundation for investments to generate significant value over time, whilst retaining focus on short-term execution.
Our strengthsClear portfolio roles
Clear capital allocation framework underpinned by strong balance sheet
Family controlled with split share structure
*Excludes shares held in Treasury
Businesses for the future1
Option value for future, tomorrow’s Growing and delivering businesses
Balanced and flexible approach to uses of capital
Revenue share: 1%
U/L growth: +61%
Cash OI margin: (19)%
Revenue share: 44%
U/L growth: +6%
Cash OI margin: 14%
Revenue share: 55%
U/L growth: (2)%
Cash OI margin: 16%
Investing through the cycle
Initiatives aligned with portfolio roles
Focus on growth opportunities and disruptive technologies
Commitment to dividend policy: real dividend growth
Acquisitions approach: structured & disciplined – no ‘deal fever’
Maintaining financial flexibility
Shareholder returns
Growing and deliveringRevenue growth and margin improvement driving value creation
Dividend
Predictable performers Predictable profit and cash to meet DMGT’s obligations, fund investment and incubate Businesses for the future
Prioritise organic opportunities
Incr
easin
g p
ortfolio focus
Improving operational execution
Maintaining �nancial �exibility
Satisfyingthe need to know
Clear portfolio roles
Revenue by type and underlying growth rates FY 2019
Enabling balanced and flexible capital allocation
Performance management culture
Excludes Genscape and other 2019 disposals. 1 DMGT holds minority stakes in growth businesses, such as Yopa and Cazoo but these are not subsidiaries and are not included in revenue or Cash OI. The FY 2019 figures relate to DailyMailTV.
Subscriptions +4% Digital Advertising +11%Circulation (3)% Print Advertising (1)%Events +4% Transactions & Other (1)%
31%18%
20%
13%
8%
10%
©2020 DMGT plc. All rights reserved. No part of this document may be reproduced without prior permission of DMGT.
Over three years, DMGT has returned £1.1 billion to shareholders, including c.430m of cash and c.£660m of Euromoney shares.The focus of the portfolio has been significantly increased (sectors: 10→5 / companies: 40→8) and the Group’s financial flexibility substantially enhanced.