DMGT Half Year Results 2017

25th May 2017

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DMGT Paul Zwillenberg, Chief Executive Officer Tim Collier, Chief Financial Officer

QUESTIONS FROM Will Packer, Exane BNP Paribas

Nick Dempsey, Barclays Capital

Matthew Walker, Credit Suisse Patrick Wellington, Morgan Stanley

Ciaran Donnelly, Liberum

Steve Liechti, Investec Katherine Tait, Goldman Sachs Natasha Brilliant, Citi Chris Collett, Deutsche Bank

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Opening Remarks

Paul Zwillenberg, Chief Executive Officer Good morning everyone. Thank you for joining us. I’d like to start this morning by saying how pleased I am to be joined on the stage with our new Group CFO Tim Collier. The fact that we were able to attract someone with Tim’s pedigree across Information Services, Media and even Exhibitions is a testament to the quality of our brands, the excitement surrounding DMGT and its future potential. I’m going to ask you to be nice to Tim, don’t dig the claws in too deep, he’s only been here for three weeks and a couple of days. Then again he is starting to build a forensic knowledge about the Group, I’m sure he’ll test it later. Tim’s appointment rounds out a year of building the team, of reorganisation at DMGT. Reorganisation is never easy but I felt it was easy to bring in a team with the right capabilities and give them the accountability to position DMGT for success and to deliver on the many significant opportunities that sit out there before us. In addition to Tim, we’ve recently appointed a Group Head of Strategy and Performance Management, a Head of Corporate Development and M&A; we have appointed a Group HR Director and also a Chief Information Officer. And what’s really exciting is that all four of these people have come from inside the Group, reflecting the breadth and depth and quality of the talent inside DMGT. With this team in place, I’m very confident of our ability to deliver. Today we’ll follow the usual agenda; I’ll cover off a few of the highlights and then hand over to Tim who’ll walk us through our financial performance. I’ll come back and update you on progress we’ve been making against the strategic priorities I outlined last December and then we’ll take some time for Q&A. We aim to wrap up just before 11 when there will be a moment of silence. So the highlights. Performance in the first half of this fiscal year is broadly in line with expectations. Group underlying revenues were up 1%, underlying profit was down in line with our expectations of 11% as we continued to invest in a number of our businesses, a number of our priority investments through the cycle. This was driven off the back of encouraging performance in our consumer business, dmg media, and mixed performance in B2B. We reduced our stake in Euromoney below 50% and continued our 20 plus year run of delivering dividend growth in real terms. In December I outlined our strategic priorities, our three strategic priorities. I’m pleased to say we’re making good progress and actually are seeing the impact of these programmes already. I’ll walk you through some of the details later on: talk about the management team at RMS and we shipped our RMS(one) Risk Modeler. The significance of this should not be underestimated, we’re already deploying it in the first set of customers. MailOnline has made great progress, doubling its audience and growing its revenues and is on a path to profitability, already delivering positive contribution. There are some areas in the group that are not meeting our high expectations and I can assure you we have a laser like focus on working with them to improve their performance. We took the first significant step in delivering financial flexibility in the past six months, reducing our stake in Euromoney below 49%. That was followed up by the disposal of Elite Daily and a few other activities are underway where we’re reprioritising initiatives that are not meeting our expectations. Taken together, these actions have delivered enhanced financial flexibility, we have a stronger balance sheet ending the half year with a net debt to EBITDA ratio of 1.6. Before I hand over to Tim, for those of you who don’t know Tim he came to us from Thomson Reuters where he was CFO of the Finance and Risk Division. Prior to that he was at Reuters and before that

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at UBM. It’s the perfect CV for DMGT. When his CV came across our desk I looked at it and I said this is fantastic, to bring on somebody, to have the opportunity to recruit somebody who brings information services, deep experience in consumer media and news and even exhibitions. I looked at 60 candidates over the period, met with more than a dozen, Tim has what it takes to deliver for DMGT. And it’s not just in his industry experience, he’s worked on most aspects of the financial realm from treasury and internal audit to M&A and I’ve seen him in action working hand in hand with managers to improve performance. On top of that, he’s lived and worked for the last nine years in the US, bringing another international dimension to our leadership team. So with that, let me hand over to Tim who will walk us through the half year results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial Review Tim Collier, Chief Financial Officer Wow, thank you I guess. Thank you for pointing out this is three weeks and my third day, so I know everything there is to know about DMGT and I will try to answer some of your questions a little bit later on probably with Adam’s help. So thank you very much Paul and good morning everybody. So before I dive into the results, and Paul hadn’t told me he was going to say all those things, I thought I was just going to explain why I accepted this role. Apparently, I’m qualified for the job, which is great, thank you very much. You don’t accept a role just because you have the right CV, you accept a role because of the potential you see for the company and for the people that you meet in the company. And I actually believe this is a truly exciting time to be in media information and even more so to be part of a business like DMGT. So we have a portfolio of entrepreneurial businesses operating in high potential markets with great content and proprietary data and I think that is really quite remarkable. As the world becomes even more demanding and complex, the need for relevant and vital information that you trust has never been greater. And I think we at DMGT are well placed to answer that need, not least because we’ve been here for the long term just as the business has since 1896. And because we’ve been around since 1896 we’ve seen cycles, we’re not fazed by them, instead we prudently invest through them for the long term benefit of the business. And that is why I am excited about joining DMGT and, in particular, working with Paul and his management team on fulfilling DMGT’s long term potential and that is the main reason I joined DMGT. So it really is a great pleasure to be here today; again, three weeks and three days in. I’m looking forward to meeting many of you, a few of you I know in the audience and I’ll hopefully answer some of your questions a little bit later. So, with that, I’ll move on to the formal part of my presentation but before I click up any more slides, we have a lot going on with our numbers this half year. We’ve got the reduced stake in Euromoney, we’ve got timing of events and we’ve got currency movements. So I’m going to do my best to try to explain those away for you, so that you can see the true underlying performance of our business was in line with our expectations. So on this slide you can see our adjusted numbers and this is exactly the same format that DMGT traditionally reports to you. So Group revenues grew by 1% on an underlying basis with the B2B businesses up 1% and an encouraging performance from dmg media. The reduction in the stake in Euromoney, which I’ll come on to, did have an impact on year on year performance but that’s particularly at the revenue and operating profit level. So please note on this slide, when we refer to underlying we exclude Euromoney from those numbers. Operating profits were down an underlying 11%. There was good underlying growth from dmg media, but this was offset by the planned investment in Xceligent and expected decline at RMS. You may

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remember we recently launched RMS(one) and so are now amortising the cost of that through the P&L. So our operating margin was down year on year, again that’s partly due to the Euromoney transaction but also as a result of the lower margins that I will go on to explain. Profit before tax was down 18% and again I’ll come on to this but the key thing is the dynamic of M&A and the timing of the Gastech event. Earnings per share was down 12% and the interim dividend is 6.9 pence, that’s an increase of 3% and we continue to deliver real dividend growth. The increase reflects our confidence in the long-term prospects of DMGT. Now, moving to Euromoney. I’m sure most of you know the details of Euromoney, but I thought it was useful to take you through what happened and the impact it has on DMGT’s numbers, together with how we will report Euromoney for you going forward. So, in December we took a major step in respect of two of the strategic priorities that Paul has outlined, increasing the focus in the portfolio and enhancing our flexibility. We did this by reducing our stake in Euromoney from 67% to 49%. The total proceeds, I particularly like point in the slide, the total proceeds were £317m on which we have a book profit of £509m and that’s because under IFRS 10 we are required to revalue the part we sold and the part we keep. That gain is not included in our adjusted numbers. Now, accounting for Euromoney is slightly complex, for the first three months of the current financial year we owned 67% of Euromoney therefore it was a subsidiary. This meant we consolidated it 100% both in the revenue and the operating profit lines just as we have historically. There was a minority interest adjustment at the post tax level of the 33% that we did not own. Now during the second quarter we reduced our stake to 49%. That means that Euromoney was no longer a subsidiary and we didn’t control it. And therefore it became an associate so we treat it now in exactly the same way as we do for Zoopla. We reflect our share of the operating profits in the associates line with our share of exceptionals, interest, tax etc reflected in respective lines of our accounts. Now, from a cash flow perspective, when Euromoney was a subsidiary we consolidated 100% of its operating cash flow. Going forward we will just recognise our cash from dividends and indeed that’s the same way that we do for all associates. So, to help you understand the impact on the year-on-year performance and to give you an insight on really what’s happening we have on this slide revised our 2016 figures. This shows our pro-forma results and what they would have looked like if we had owned 49% of Euromoney during the second quarter of 2016, so consistent with this year. The 2017 figures on this slide are exactly the same as the previous slide. So adjusting for Euromoney on this pro-forma basis, you will see that reported revenues were effectively up 5%, which compares to the 6% decline you saw on the previous slide. Similarly, operating profit was down 8% compared to the 27% you saw on the earlier slide. Profit before tax and earnings per share were both effectively down by 8% and that compares to 18 and 12% that you saw on the previous slides. So, consistent with our usual methodology of only including businesses that were subsidiaries at the period end, Euromoney has and will continue to be excluded in the underlying revenue and operating profit calculations. So these figures on these slides have stayed exactly the same as the previous one.

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I can’t leave this slide without pointing out that the transaction also strengthened our balance sheet and our net debt to EBITDA ratio is now 1.6 times compared to 2 times this time last year. So running the risk of giving you too much data I hope this slide is useful. On this slide we’ve restated our 2016 full year revenue and profit so that you can see what we would have looked like after the Euromoney transaction, so that’s essentially treating Euromoney as a 49% associate for the entire year. As you can see from this slide, B2B businesses make up around 68% of our profit with around 32% coming from our consumer businesses. So that’s the walk through of the impact that Euromoney has had on our financials. I’m now going to run through the various businesses. First of all, I’m going to start with our B2B businesses and firstly RMS. So RMS’s performance was in line with our expectations, with underlying revenue growth of 1%. Now, in sterling terms RMS benefited from the stronger US dollar, hence the reported 21% that you can see on this slide. And as you’ll recall RMS(one) was released last summer and, as a result, the operating profit and margin were adversely affected by us no longer capitalising the RMS development costs. And we now have that amortisation cost being depreciated through our operating costs line and that’s the reason you can see the profit reduction there. Now, as you may recall, in December we showed a slide setting out RMS’s EBITDA margin and the implication for its cash flow dynamics. I’m pleased to say that RMS’s EBITDA margin was 24% in the first half of this year and that compares to 17% in the same period last year so, as you can see, good underlying EBITDA progress there. Now, on the topic of RMS(one), the Risk Modeler application was released in April. Now, as some of my history shows, I know a little bit about enterprise software and I understand quite what just a major milestone this is and Paul will talk to you about it a little bit later on. So the full year outlook for RMS remains unchanged, low single digit underlying revenue growth and an operating profit margin being in the low teens. Now let me turn to dmg information. I’m going to start by walking through the revenue dynamics. Revenues were up 13%, including the benefit of the strong US dollar, and were in line with our performance for the last year, again on an underlying basis. Our European property revenues were down an underlying 4% and the UK residential market has been soft, as I’m sure everyone in this room knows. And although there’s been some pick up recently, mortgage approval volumes in the first half were down 3%. Now, to be fair to our European property business I should point out that they had a pretty tough comparable, as last year had the one-time up tick from the UK stamp duty changes. So again here the performance was in line with our expectations. Now let me move to US property and this includes Trepp, which continues to grow and overall US property was up 4%, as it benefited from good growth from early stage businesses such as Xceligent, SiteCompli and Buildfax and was in line with our expectations. Now moving to Education. At Hobsons, the businesses such as Naviance and Starfish continued to deliver good growth. The higher education CRM business, Admissions, has had a more challenging half and so Hobsons’ overall underlying revenue growth was 3% as a result. Now moving to Energy, Genscape, which is a business I have admired for some time from afar and I have to tell you, in the three weeks here I haven't changed my view at all on it, is a business that delivered 26% revenue growth. But on an underlying basis it was 2%, again reflecting the strong US dollar.

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There has been continued good growth from the Gas business and consistent growth from the Power businesses. The key change has been a slowdown in the solar business Locus, reflecting a changing market. The stable and relatively low oil price has also had a slightly dampening effect on our Oil business as price volatility usually generates demand. And the low price also squeezes clients’ budgets. But despite this, the Oil business has continued to grow. I'll now turn to dmgi profits. The operating profit at dmg information is always seasonal and that's especially so at Hobsons, with the first half margin being lower than the full year. So, in the first half the margin was 9%, and that compares to 11% last year, with all of the reduction being attributable to Xceligent. Xceligent is our US property information business, where we've been investing to build out the databases for New York and Chicago, the US's two largest commercial real estate markets. Just to be crystal clear, excluding Xceligent there was year-on-year improvement in the operating margin. So looking ahead, given the relatively muted performance in the first half for those specific businesses in Hobsons and Genscape, I thought it was appropriate to reduce the guidance to low-single digit underlying revenue growth for the full year. The lower revenue growth is expected to have an adverse impact on margins. And so whilst our guidance is not changing and is still mid-teens margin, I think it would be reasonable to expect it to come in slightly under the 15% that it achieved last year. Now moving to dmg events. dmg events continues to perform in line with our expectations. The lower reported revenues reflect the fact the Gastech is on an 18 month cycle and was held in the first half of last year but has taken place in April of this year, so our second half. The underlying revenue growth for Events was 3% in the half and that's in line with the performance of the other two major events, ADIPEC and Big 5 Dubai, both of which took place in November. Now this division has also continued its successful expansion into Africa, with the Egypt Petroleum Show, Big 5 East Africa and Big 5 North Africa, all good examples of its geo-cloning strategy. So as you'd expect, given the absence of Gastech, the margin was also a little lower this year. But on the subject of Gastech, I'm pleased to say that Gastech took place in Tokyo last month and delivered double-digit revenue growth, obviously that's not included in these numbers today. The Canadian energy market remains challenging for us and this is expected to have an adverse effect on the June Petroleum show. Now importantly we've also moved the timing of some of our events, for example our Big 5 show in Egypt, which is new, will now take place later in this year, so will now be in the 2018 financial year, we'd originally planned it would be in this year. So, with that in mind, and as I say especially the timing of events, we are going to lower our full year outlook for underlying revenue growth to mid-single digit. Please note, however, that in absolute sterling terms our expectations for the full year revenues are in line with the current market expectations. The outlook for operating margin remains unchanged at around 25%. Now Euromoney, there's only one slide on Euromoney. Euromoney released their results last week and so I'm not going to say a great deal about them, except to repeat Andrew's comments about encouraging progress being made during a year of transition, with the resumption of underlying revenue growth in the second quarter.

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Now let's move to our consumer businesses, dmg media. As you know, we sold Elite Daily in early April, but from a reporting point of view it is included in the results I'm about to take you through. So we are encouraged with the performance of dmg media, revenue was in line with last year and it's a resilient performance, again you can see that here on an underlying basis. MailOnline made good progress on its path to profitability and this, coupled with the continued strong management of cost in newspapers, resulted in operating profits being up an underlying 5%. The outlook for dmg media for the full year remains unchanged, with stable underlying revenues and the margin being broadly in line with last year. This slide shows revenue by type, despite the continued declines in volumes, circulation revenues grew 2%, benefitting from the 2016 cover price increases. We believe this performance demonstrates the continued strength of the Mail brands. As you'll see on the slide, the growth in digital advertising has largely offset the 8% decline in print advertising. And it's worth noting here that excluding Elite Daily, as I say which we've now sold, advertising revenue was actually in line with last year on an underlying basis. Some more detail on revenue for dmg media. Looking at the performance of the individual businesses, revenues at the Mail newspapers were down 3% and that includes the 12% decline in print advertising. You'll see that MailOnline's revenue grew 19% on an underlying basis and actually by 35% including the benefit of the stronger US dollar and the fact that we own MailOnline Australia now outright. The business continues to perform strongly in the US and has benefitted from increased programmatic and partner revenues. And Paul, I know, is going to talk about this a little bit later. I would highlight here that MailOnline's advertising revenue is fast approaching that of the Daily Mail and The Mail on Sunday. So overall stable underlying revenue for the Mail Group. Now Metro's revenues were marginally up with the benefit of increased circulation volumes in London and the inclusion of four new regions, offsetting the market dynamics in print advertising. We saw a reduction in the lower margin sales of newsprint and the impact of the disposal of Wowcher and the closure of 7 Days, hence the 2% decline in reported revenues you see here. Now let me move to profit for dmg media. A figure to flag here is the strong underlying profit growth of 12% from the Mail businesses, which really is very encouraging. This was driven by progress at the MailOnline on its path to profitability, as well as being supported by tight cost control in the newspapers. Now Metro's production and distribution costs have increased, reflecting that increase in circulation volumes and the investment in the four new regions, resulting in the decline in profits you see here. Elite Daily's losses were £4m in the half and we also had some losses from 7 Days before that was closed. So dmg media's future margin should benefit from the increased focus of that portfolio. This slide here summarises what I've just taken you through and shows that breakdown of the 1% underlying revenue growth for DMGT, with 1% growth from the B2B businesses and that encouraging performance from dmg media. The next is a slide that I really like, so I thought I'd bring it forward, it's often in the appendix, but I bought it through to the front of the presentation because I think it highlights the growth in our various revenue types. So as you can see at the top of the chart here, print advertising revenues declined, no real surprise I would suggest to people in this room. We did see a down tick in our transaction

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revenues which are typically more volatile and the down tick largely reflects UK property. You'll notice we grew in every other category, helping, I believe, show the underlying strength of our portfolio. So operating profit is on this slide, similar for the revenue slide, this brings together the overview of what I took you through and shows the figures on a pro forma basis. Now one of the things we haven't talked about yet is corporate costs, these were 14% lower year-on-year, reflecting more good progress in operational execution. Moving to joint ventures and associates, so our share of operating profits from JVs and associates was £26m in the half, with growth from both Zoopla and Euromoney. Again, the 2016 figures for Euromoney are on a pro forma basis. Zoopla reported its results yesterday and they continue to deliver good growth with revenues up 22% and adjusted basic earnings per share up 3%. So, as we highlighted in December, our full year guidance for joint ventures and associates is expected to be around £65m. So the next slide, this slide, essentially shows the bottom part of the P&L. Now, as usual, these numbers are all adjusted and again on a pro forma basis. I've already covered operating profit, joint ventures, etc, so I'll move on to net financing costs. Now these were a little higher this year and the £21m includes our share of JV and associates interest costs and they increased. The interest cost has also been adversely affected by the strong US dollar. So although there was some benefit in the reduction of net debt, this was offset by the FX impact on the coupons on our higher rated bonds, which are effectively paid in US dollars. The effective tax rate was 14.6%, marginally higher than last year after revising to show Euromoney on a like for like basis. So bringing this all together, adjusted earnings per share were down 8%. Now exceptional items. Exceptional operating costs have increased year on year to £55m in the half. Of that, as you can see on the slide here, cash items totalled £20m. These include £17m of reorganisation, redundancy and consulting costs, notably at dmg information and in respect of the closure of the Didcot printing plant. You can see as you continue the slide down there was also £35m of non-cash write downs at the closure of the Didcot plant. The other notable item on this slide is the profit on the sale of assets. Now the accounting treatment for the disposal of the Euromoney stake was quite involved and effectively what we have to do is treat it as a complete disposal and therefore we recognise the full gain - 67% of Euromoney's net assets that we owned in the balance sheet at disposal. The 49% that we currently own is then brought back onto the books at market value. So that generated the £509m of profit on the disposal in respect of Euromoney. And as you can see that accounts for the majority of that £530m. Let me now move to net debt. I'm pleased to report the net debt of £551m is the lowest it has been for over a decade. And I have already talked about, as did Paul, the fact that our net debt to EBITDA ratio is now 1.6 times, a considerable improvement from the 2 times that it was last year. As you can see on the slide, operating cash flow was £37m, including £27m of cash payments in relation to exceptional items. Now as you will know, our cash flow is seasonal, with generally lower operating cash flow in the first half and better in the second half. Cash conversion, pre-exceptional cash items was 63% and that compares to 41% last year. Additionally on this slide you have the usual pension, tax, interest and dividend outflows. With pension and dividend payments being weighted to the first half of the year. Now, as flagged in December, the pension funding was only £13m this half, compared to £33m in the first half of last year. And that reflects the reduced payments agreed with the trustees last autumn.

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So while we're on pensions, a figure that doesn't appear on this slide, although it is in the pack, is that the accounting deficit on our pensions is now just £43m, down from £246m in September. Again, you can see the big number on this slide, we've obviously benefited from the proceeds from the Euromoney disposal, which are included in that £299m M&A figure. Although, as you can see, there was a partially offsetting £96m impact on net debt from the fact that we no longer consolidate Euromoney's cash on our balance sheet. And finally I'll turn to FX. There was a £14m adverse impact on FX, and that's again mainly due to the strength of the US dollar. And that is because we have a policy of matching the currency profile of our debt to the cash generation of our businesses. So, in conclusion on net debt, given the seasonal cash generation we are expecting net debt to EBITDA to reduce further by the year end. Now this slide is the update on what you saw in December, a very comprehensive outlook. In summary the changes we are making are to the revenue adjustments to dmg information, and dmg events, again largely due to timing there. In addition on this slide I've updated the guidance for the increased income from JVs and associates that I spoke about earlier of £65m. So to sum up, the first half performance was broadly in line with our expectations. On the B2B side the results from RMS and dmg events were as we expected. Dmg information had a more mixed performance, with the expected challenging market conditions for European property being offset by growth in the other three sectors, albeit slightly weaker than we would have liked in a couple of areas, Hobsons and Genscape. On the consumer side we are very encouraged by the performance of dmg media. Looking ahead to the second half of the year we will benefit from Gastech. As I said, that happened in April, and we're likely to benefit from a stronger US dollar, although not as significantly as we did in the first half. So as I said, I've been here for three weeks and in that three weeks I've spent a lot of time with the businesses, including RMS, Genscape, Hobsons, Trepp, Landmark and Events and that has resoundingly reinforced my decision to join DMGT. I am as enthusiastic as Paul is about the quality and depth of our experienced management team and for our prospects for the future. So thank you very much for your attention, I'm looking forward to answering maybe some of your questions later on, with that, as long as you don't embarrass me again Paul, I'll hand back to you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Strategy and Business Update Paul Zwillenberg, Chief Executive Officer Great thank you Tim, well done. What I'd like to do now is to update you on the progress we've been making against the three strategic priorities I outlined in December and importantly bring it to life by talking you through some tangible examples. So before I do, I want to take a couple of minutes just to remind you of two things, the considerable strengths that sit within the DMGT portfolio and also to give you a perspective on how we see our information services and media markets evolving to put the strategy in context. Our strengths, every time I spend - every moment I spend with customers, with our employees, with our engineers and our product developers, I'm reminded about the markets that we're in, about the services that we provide. Our markets all have very extensive runways, we provide them with

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proprietary data and information, tools and utilities that help people make decisions, the help people run their businesses. We've amassed a collection of entrepreneurs who see the future and who are helping to deliver that every day, not just at the top but all the way through the organisation. The long term perspective at DMGT is really special, it allows us to continue to invest through the cycle, as we've done for decades and decades; putting bets down on early stage businesses, supporting high growth businesses with the capital that they need and supporting our more mature businesses that provide the capital to support the cycle. And we do have a diversified portfolio which gives us strength and resilience as our businesses evolve, as our markets evolve. Our markets continue to develop, Tim talked about some of this in his remarks, he talked about the longevity of DMGT, and we've seen this happen many times. Two decades ago we were a publishing business, then we become a digital publishing business, today our information businesses help businesses make decisions, they provide workflow tools to help them get their jobs done on the back of proprietary data. That world is evolving too, we hear about artificial intelligence, big data, machine learning, deep learning, we're doing that. We hear about the internet of things in the industrial internet, we build our own sensors, we're collecting data. These trends and many others like them are changing the way information is used, are changing the way it impacts businesses. We're very focused on this I can assure you. We see the next horizon as a world where we don't just support decisions or provide tools for workflow, but where we're actually embedded deep in the enterprise, making decisions, helping getting things done. Some of our business, RMS, Genscape amongst others, are already using artificial intelligence and machine learning in their day to day activities. Others are starting to experiment and trial. My commitment to you and to our shareholders is to navigate DMGT through to 4.0 to make sure that we’re positioned for success, just like we’ve done in the past. If you think about digital classifieds we saw that, we saw how that business was going to evolve when I was at DMGT in my first stint. We started up businesses, we invested in the sector, we built businesses and crystallised some of those businesses, most notably in Zoopla. And I promise you we will do the same here. Every investment that we look at going forward we’ll be making with the 4.0 lens. In December I outlined three priorities, improving operational execution, increasing portfolio focus and enhancing our financial flexibility. And what I’ll do now is talk you through some of the specifics and the impact that that is having. Improving operational execution we broke down into three areas, the signature moves that help drive the top line and the bottom line. Putting in a performance management system, providing KPIs with our managers to make sure that they stay on track and to help them focus on the things that are going to move the needle. And making sure we eliminate red tape to make sure we’re agile, faster, fitter, can make decisions more quickly, react to changes in our market. This will drive value creation in the portfolio for the long term. So how are we doing? We’re making real progress and we’re starting to see the impact. I touched on, in my opening remarks, the team at the centre of DMGT and the quality of the talent we’ve brought in, the simplification of the reporting lines. Cameron Drinkwater in Strategy, Annie Edwards in People, George Orlov in Technology and Erik Levy in M&A are four of the people that have come in and been promoted internally. We’ve also made some great appointments inside the businesses. These range from CEOs to COOs, from Directors of cloud operations, critical in today's SaaS world, to data scientists and

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commercial teams. At RMS, for example, we recruited the former head of McKinsey's insurance practice to be its President, as well as a senior executive from Aon Benfield to run Client Solutions. Tim and I have both touched on RMS. Let me go into a little bit of the detail. Over the last year I have worked side by side with the team at RMS, focused like a laser beam on launching RMS(one). We’ve had our hiccups over the years but I'm pleased to say that the team delivered. It was great to watch them over the past year as they took on every challenge, not insignificant in developing SaaS software, and they have delivered. We’ve already rolled it out to the first set of customers. We’re already loading in their data and starting to show them how to use the software with a strong pipeline going forward. What’s really important about this, and I’ll highlight this, what’s really important about this is the impact it’s going to have on RMS and also on DMGT. It opens up new revenue streams. It further embeds us in our clients’ business. That is great for RMS and I'm confident the investment will pay dividends down the road. But it’s also important for DMGT. We’ve learned so much over the past 12, 18 months, from product to software development to deploying it to cloud operations. These are all skills that we’re already taking and spreading out through the rest of DMGT. But it’s not just RMS(one) Risk Modeler to be proud of. The team also delivered RiskLink 17, a major upgrade to our core product and service. We released the largest amount - announced the largest amount of IP at the Exceedance conference recently, including a major upgrade to our flagship North American earthquake model and also 2.0 versions of our cyber risk and terrorism models which given the terrible events over the past couple of weeks. I'm confident that that team is poised to deliver technologically and commercially. Moving on to MailOnline. As Tim noted MailOnline is on a path to profitability. That’s underpinned by a deep focus on their operations. Advertising revenues are up, driven in large part by the great team we have delivering programmatic advertising. We’ve also streamlined parts of our operations but we’ve also made tremendous progress in terms of audience. Let me drill down into that. MailOnline audience continues to grow. Not only does it continue to grow, it more than doubled over the past year. Now what’s important when you’re looking at digital audiences is the daily interactions you have with your users. This is what Facebook reports, it’s what Snapchat reports. If you look at MailOnline what you see is that we have more than doubled to 49 million visitors each and every day. It came from the core business, from MailOnline, from people who come directly to our home page and interact with our brands. For us that is the foundation, a strong foundation of people coming to your site. And what you can see is that they spend a lot of time, nine minutes a day on average, 15 million daily viewers. Some of our most loyal and most frequent visitors spend over a half an hour a day, that’s one TV show. But in addition to our front door we have really focused on working with our distribution partners to develop their platforms. With Snapchat and Snapchat Discover we’re now averaging 10 million daily viewers, that’s 10 million viewers on Snapchat interacting with our content, about four minutes a day, up nearly 700% year on year. Facebook, Facebook is another key partner with us. We’ve worked very closely with them and in particular are developing our video proposition where we’ve seen almost 350% growth in daily viewers, 24 million spending on average a minute with us every day. Now why is this important? Well 200 million minutes a day gives you a lot of opportunities to show advertising and a lot of opportunities to generate revenue. 200 million minutes translates into 100 million hours a month and, like I said, we have a very strong team doing our programmatic advertising that can take full advantage of this. But it also opens up new revenues. The yellow part on the slide, Snapchat is a developing partnership which is making a contribution. The dark blue at the top, Facebook video, that is all white space. Facebook has just

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started rolling out; we’ve just started testing some new video ad formats that they’re putting out. That is white space. It’s great to see how this team has performed, how they focused on developing content tailored to our own platforms and these other distribution platforms, and you can see the results there. But it’s not just digital. We’ve opened a whole new leg for MailOnline in TV. Recently we announced a partnership with Dr. Phil, one of the biggest TV personalities in the US. And a relationship with Sinclair Broadcasting which will soon be the largest operator of local stations in the US, who are going to roll it out across their network this September. Not only does that give us a new platform, a new leg to the business, a strong video proposition, it enhances our branding and it generates new revenue streams in licensing, carriage fees and advertising. As Tim said, the combination of this has put MailOnline firmly on a path to profitability. It’s making a positive contribution. And MailOnline and RMS are setting the tone for the rest of DMGT. Focus on the operations, prioritise what you’re doing, high quality, great work and you can see how it delivers. When we look forward to the second half there are other areas that we’re now starting to turn our attention to. Where there's areas that are not meeting our high expectations I can assure you Tim, myself and the leadership team are focusing on those areas, supporting the businesses to deliver. In the second half of the year Genscape, Hobsons and Xceligent are areas where we’re focusing. Tim talked about some of the challenges that this solar business in Genscape is facing. That business, the distribution, the way solar panels are sold into US households and businesses changed literally overnight when the Chinese adjusted the pricing of those panels. The retail - it went from a leasing market to a sales market and our team is now very focused on making that transition to the new distributors. At Hobsons, we upgraded the sales force over the past year. We’ve brought in new ways to profile and target customers and that is paying off. While I can’t reveal the name, just yesterday we signed a multi-million dollar contract with one of the largest school districts in the US for the Naviance student success product. A real testament to the quality of that business and to the outcomes, the positive outcomes, it delivers for high school students in the US. And Xceligent, a business where we have continued to invest in growing out in New York and Chicago to see, to test and understand how we can take that from a regional platform to a national platform. Those three businesses we will come back and update you on at the full year. They’re businesses where we are focusing on and I expect over time we will see similar levels of performance that we’ve seen in RMS and in MailOnline. The second priority is increasing our portfolio focus. I talked you through some of the specifics of this in December. We are working through business by business to understand their full potential and what resources they need to get there. And we’re now layering on this 4.0 lens as we think about the long term future for these businesses. Progress: we’ve talked a lot about Euromoney. Euromoney represents the first significant step in delivering portfolio focus and financial flexibility. That was followed by the disposals of Elite Daily and the closure of 7 Days. With Elite Daily we found Bustle Media Group, focused purely on millennials, a better home than DMGT. And in Hobsons, as we deep-dived into that business, we realised that there were two businesses in Hobsons, a fast growing student success business in Naviance, Starfish and our Intersect matching business. We saw there was a more mature business in our CRM business, our Admissions business. And what we realised was that if we split them, effectively split them into two businesses in the same company, with dedicated management teams, one focused on fast growth, one focused on managing a mature business, that we would deliver the differentiated performance, differentiated

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expectations that those businesses need. I'm pleased to report very good progress in the six weeks since we made those changes. Looking forward to the second half we will continue on the portfolio review. We’re about two-thirds of the way through it. We will continue prioritising those growth initiatives that are going to move the needle. As I said in December, looking across DMGT we saw a lot of initiatives designed to drive growth. But for me it’s not just growth for growth's sake, it’s growth that also brings with it profitable growth. And if we don’t see the potential for significant profit growth inside these growth initiatives we will look at ways to either reconfigure them to deliver those profits or we will stop them, focused always on the long term and things that will move the needle. And finally, we will continue our active portfolio management, prioritising initiatives, thinking about where the businesses should be, thinking about the balance between growth and profitability for each of our businesses. The third strategic priority is enhancing our financial flexibility. Improving the operational execution and cash flow, increasing our portfolio focus gives us this financial flexibility. You've seen in the first half the effects of that, lower net debt to EBITDA ratio, improved RMS cash dynamics, and we’ve also rolled out a remuneration scheme for the senior leadership both at DMGT and in our operating companies that incorporates cash flow metrics into remuneration. If we look forward to the second half, we will continue to invest in selected growth initiatives as we have been doing, as we’ve planned and continued to do at Hobsons but across the business. We will be looking to improve business cash flows, seeking ways to remove duplication, to cut red tape and to deliver maximum efficiencies. And as Tim set out, these actions and others will continue to improve our net debt to EBITDA ratio strengthening our balance sheet. In summary I see myself as the guardian of the long term future of DMGT. We are one step in a long journey to continue to deliver for our shareholders. The first half performance was in line with my expectations. I'm pleased to see us not only executing the strategic priorities but seeing the impact in places like RMS(one) and MailOnline. That gives me a lot of confidence that we can apply that same formula to the rest of our businesses. The priority going forward is to position DMGT for the long term and I am committed to delivering that. Thank you. We’ll now take questions for the next 20, 25 minutes and remember we’re going to stop at 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Questions and Answers Will Packer, Exane BNP Paribas Three questions from me please. Firstly there's been some reports in the media on an ongoing court case between CoStar and Xceligent. CoStar have talked up the amount of funds that they spent on litigation and the potential damages they could claim. Could we just have an update from your end as to where things stand there? Secondly thanks for the update on RMS, sounds like things are progressing well. Could you just give a little bit as to how we should think about consensus expectations for revenue growth at RMS(one) in FY'18 and '19? Obviously, not really an issue this year but kind of critical for the progress there. How should we think about that? Is consensus reasonable or not? And then finally, when we sat here in November, we talked about no sacred cows in terms of the asset mix. We’re now six months on, are there any? Are some cows more sacred than others? Can we just have an update on how you think about that and particularly around the print newspaper? Thank you.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Great, why don’t I take the first question and the third question, I’ll let Tim answer RMS. So, with CoStar and Xceligent litigation, obviously I can’t comment on ongoing court cases. The suit was filed, we filed our counter, we’re waiting for the judge to come back and rule on our motions to dismiss. What I will say is we are very confident in our position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer So then your second question RMS, broadly ‘yes’, I think is a straight answer to your question. Maybe just worth talking a little bit about the dynamic. We’ve obviously launched it, we have good customers and we’re encouraged by the customers' response. I would expect for our financial year a slow ramp up through '18, and '19 would be the bigger year for RMS(one) specifically. I should point out that that’s not the only product that RMS has. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Will Packer, Exane BNP Paribas And just to come back on that, could we have some kind of understanding of where consensus stands for RMS divisional organic? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer I’ll let Adam give you that later on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer And then your third question, there are no sacred cows. We continue to look at every aspect of the portfolio with the lenses that I outlined. And fundamentally, to understand if a business is a better owner than we are. We’ll make the appropriate decisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Will Packer, Exane BNP Paribas Sorry there was just the comment on print newspapers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer There are no sacred cows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Will Packer, Exane BNP Paribas Thank you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nick Dempsey, Barclays Capital Three questions please. So first of all just on Metro and the Q2 there. So I think you told us Metro was down 10% in Q1, it’s up 1% for the first half so a lot of growth in Q2. Some of that feels to me

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like an acquisition in terms of the stuff you've got from Trinity Mirror, even if you didn’t pay anything for it, so shouldn’t that be stripped out of organic? And the other component of Metro, you increased circulation, is that not just you kind of buying organic revenue growth or is there actually extra demand out there for more Metros? So just an explanation of why that’s jumped to roughly 12% growth in Q2? Second question, looking at your roadmap towards 4.0, quite a lot of those things look a bit expensive. Now you don’t have double-digit revenue growth kind of flowing through in a couple of those divisions, does that mean we have to worry about margins going backwards a bit on the road to 4.0 before they come back up again? And just on the Mail title, the Mail cover price sorry, if you look at pretty much everyone else in the tabloids now they’re much smaller and often more expensive than you. So can you persuade Paul Dacre to put the price up a bit more? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer So look, on Metro yes we did take on some of the Trinity Mirror franchises. We felt that we were well placed to capitalise on them with our national and our classified advertising sales. And you know we treated that as part of continuing operations as a result. The circulation increase, yes there is lots of demand. We’ve been monitoring it closely and we are seeing really good take up, really good engagement levels with the enhanced circulation and importantly we’re not seeing a reduction in advertising yields offsetting that increased circulation. You asked the about the roadmap to 4.0 and if we worry about margins. Look, I always worry about margins. I am focused on ensuring that our businesses are delivering on the investments that we’ve made over the past years. As you remember, in the last five years we’ve invested over £1bn through the P&L and through M&A into those businesses. I have high expectations for all of them. I don’t think that this should be margins dilutive. In fact, I think over the long run we should see this enhance our margins. The more fundamental you are to a company’s operations, the more important the data is, the more you run parts of their business, the more opportunities there are for you to generate up-sell and cross-sell revenues, the more opportunities there are for you to extract more value and the more embedded you become in their operations. Your third question was about cover price increases. We have a number of levers that we can pull in the newspapers to grow their top line and to grow the bottom line. And we continuously evaluate those based on the market. What you know from DMGT is that we are in it for the long-term. The Mail, the Mail brands as Tim outlined, has delivered an encouraging performance over the past six months and so we will weigh the decisions such as that alongside the other levers that we have to continue that good progress and good performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matthew Walker, Credit Suisse Two questions please. The first one is on 4.0. You mentioned, and you mentioned when you took over, AI. Can you give us any concrete examples of any revenue generating products that you've got in that arena right now? And any update on how you’re using it internally to increase your own efficiencies? And the last question is I think in their recent quarter Verisk mentioned they’re gaining share in catastrophe risk modelling. Do you recognise that description and how are you responding to that? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer

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Let me take the - I’ll take both of these questions. Let me take the second question first. Yes I do recognise Verisk gaining share. Over the past five years RMS has lost a few share points in the market for catastrophic risk modelling. I'm not surprised about that given the focus, the energy, the attention on delivering RMS(one). Now that we’ve launched RMS(one) though, I expect that to go in the other direction. We are winning in the marketplace. We’re routinely beating AIR in tenders. We have launched more IP in the last two years, the greatest tranche of IP than ever in RMS's history. Our HD models are starting to gain traction. The science is winning. I was at the Exceedance conference, RMS's user conference, several weeks ago, and there was palpable levels of excitement. Not just to get hands on keyboard for RMS(one) but also to get their hands on the new IP that is coming out of our science and our scientists. In terms of 4.0, you've asked for a few examples. So at Genscape, for example, they are using artificial intelligence and machine learning to improve the operations. We regularly - one of our flagship oil products is providing real-time an estimate on the amount of oil in storage in Cushing, Oklahoma, which is the major storage facility in the US. We’re using artificial intelligence and machine learning to refine those algorithms that we use when we take pictures and we use other sources to refine our estimates. In terms of the revenue side, one of the coolest examples is actually in a venture that we have running out of RMS, which is based on the West Coast of the US, which is using artificial intelligence and machine-learning to look at future risks, such as from different chemicals or beads or different products and services. They go through the science, extract data, look at historic science and use that to develop new correlations about the risk in 10 or 20 years from products and services that are being provided today. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Patrick Wellington, Morgan Stanley I've got three questions. Firstly you said that all of your businesses have very extensive runways, so does that include the print newspapers? And are you turning the business into the Scott Trust where you sell B2B operations to protect your print newspapers? Secondly, just on the MailOnline, can you define a path to profitability because I think we’ve had ten years of path to profitability in the MailOnline, it’s a bit of a mirage, as you go towards breakeven point, it seems to recede, so perhaps you could talk a little bit around that? And then thirdly, I think back in the last meeting you talked about signature moves which has a sort of John Travolta feel to it. But you've also appointed a head of M&A, so you've talked a lot about the strength of the balance sheet and low debt and so on, is it low debt for the sake of low debt or is it low debt for the sake of buying something? And which of your businesses do you think are sufficiently big as a platform that you could make a decent sized acquisition to put on top of them? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Why don’t I take the first two questions, Tim, you can take the third. So businesses having runway, yes I think all of our sectors have runway. You use the word business, I use the word sectors. So when we look at Insurance, you know the addressable market, the areas where we have a right to play, in the multibillions. Similarly in Energy. The Ed Tech sector in the US is growing very fast, anywhere from half a billion to a billion dollars of runway there. Consumer media, I mean we see where advertising is going, we see where MailOnline is going, yes newspapers are on one trajectory but the overall sector for consumer media is still undergoing great change and we have proven, shown, demonstrated our ability to take full advantage of it.

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With respect to the question about the Scott Trust selling B2B assets to fund the newspapers, our newspapers are very profitable. They don’t need support from B2B businesses to fund their future growth. As I talked about at the full year results, and I’ll reiterate now, and you look at the encouraging performance, our newspapers outperform the market. We understand the levers that we can pull to maintain the industry-leading and desirous margins and free cash flow that those businesses generate. MailOnline moving into profitability will only further underpin and support that. The path to profitability for MailOnline. DMGT invests for the long-term. There was an article a few weeks ago in one of the US trade press that was talking about scale digital media businesses. I think they identified six that they thought were north of $100m in annual revenue. MailOnline wasn’t on that list, it’s well north of $100m in annual revenue. And when you have a business like that that keeps on growing its audience the way we saw, that directly drives revenue through programmatic advertising and that is streamlining its cost base, the path to profitability is clear. But as Tim said and I reiterated, it’s making a positive contribution today. We see it on a path to profitability, we’re confident it will deliver. You want to take the third question? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer Yeah so Patrick thank you very much, I’ll take it as a compliment about John Travolta, thank you. [Laughter] So do we have lower debt just for the sake of it? No. In fact the slide is still on the screen here, we want to enhance financial flexibility and that’s one of the reasons that we entered into the Euromoney transaction. We have our net debt to EBITDA ratio now below the two times that we think is really the cap for where we should be. Am I going to - do I think we have businesses that are primed for expanding and growing? Yes we do. Am I going to tell you which names they are? No I'm not; you didn’t really expect me to do that Patrick, so thank you very much. But yes, I think financial flexibility is obviously an important component in order to deliver the increasing portfolio focus. So I'm very comfortable now where we are with our net debt to EBITDA ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ciaran Donnelly, Liberum Just two questions from myself. You spoke about the softness in the admissions business for Hobsons. Can you just give some detail, do you think that is a temporary issue or is it a structural issue going forward? And similarly too, property in Europe, as we continuously move to a private rental market specifically here in the UK, is the softness in European property going to be a structural issue for those businesses going forward? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Why don’t I take the first one, you'll take the second Tim? So in terms of softness in the Admissions business. That business has been the engine of Hobsons for many years. But the market for CRM services for universities, for higher educational institutions, is evolving in the US. We’re facing competition from large players like Microsoft and Salesforce as well as smaller start-ups, who are going after certain tranches of universities of that offering. I think by

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creating a company within a company, just focused on admissions, we are starting to see real progress. I think that market is growing. I look for our business to stabilise its revenue trajectory over time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer And in answer to your second question, no we don’t. I think our Landmark business has done an excellent job of continuing to develop product with its customers. Some of its largest customers are the estate agents. Lots of those are now essentially rental agencies, so no I don’t see any challenge there. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steve Liechti, Investec Can I take three? One, on circulation for Mail can you give us what the actual volume decline was if you ex out the price increases from last year? Secondly just going back to this path to profitability, I do seem to remember Stephen Daintith saying that around 100 million of revenues in MailOnline gave you a fully funded or full overhead allocated profit. Is that a fair assumption or has that moved on, given investment elsewhere in the business? And then third, just on Genscape and Locus, I know the distribution thing has changed in terms of the way people are buying stuff. Is that a temporary hiatus in terms of you delivering your product or is that a structural change that disadvantages you in that part of your business? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Good questions. Let me start with the third and then I’ll hand over to Tim for the first and second. So as the channel to market shifted in US Solar, the channel that we had been working through, effectively the lease channel, has not gone away, it’s just reconfiguring itself. So we continue to support that channel. What happened was a group of large regional, about 12 regional players, emerged doing a direct to consumer retail model basically. We had relationships with them but we didn’t have strong commercial relationships with them because they weren’t delivering large volumes. We’re now working with them to start to develop those relationships. So no, I think this is temporary. Yes there was for a period of time the Solar installations declined in the US. We expected that to happen with the subsidies going away but the 30% reduction in price overnight by the Chinese I think has, you know, reignited the market. Every analyst is expecting significant growth in Solar over the next decade. Elon Musk is just rolling out solar tiles to put on your house. Every one of those installations is an opportunity for us to deploy our monitoring software. But yes, as you highlighted, we need to develop a second channel to market to take full advantage of that. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer And in answer to your first question, the circulation volumes; about 5% is the answer to that. On your second question, path to profitability, I actually think the number is less than 100 so I think they’re doing a really good job on their path to profitability. I think it’s not just revenue growth that they’re using to do that, they continue to address their cost base so I think that’s a slightly smaller number than that. So we’re encouraged by it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Katherine Tait, Goldman Sachs Just two from me. Coming back to European property, completely accept the tough comp that you had and also the slightly softer mortgage market but can you talk specifically about whether or not you've seen any share loss. I think one of your competitors has perhaps alluded to that point. And perhaps more broadly whether or not your strategy around Searchflow in particular is having a traction that you had expected? And then secondly on Metro, can you confirm whether or not the sort of hit to margins that we saw in this half is something that we should expect going forwards or was that more a sort of one-off hit as you expanded the distribution and production? Thank you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer I think those are for you. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer So the answer to your first one, yes I'm aware of the entity that you’re referring to. And I think from memory it’s the equivalent of about 8%, something like that, of the size of our revenue, so I think Landmark does many other things than just that. And yes, you’d expect to see competition in a commoditised end of the market, so I think that’s the answer to that one. On Metro, yes as I think I explained, we did have some increased cost as we build out the four other regions so yeah. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer I think we have one quick question and then maybe one more and then we have to finish. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Natasha Brilliant, Citi First question, just on the Risk Modeler now that it’s been launched. How has the pricing gone down? Is it sort of in line with your initial expectations or has there been some movement around that? And then the second question, just on the new channels you mentioned Snapchat and Facebook, whether you could just give us an idea of how the economics work with that in terms of sort of revenues and costs? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Yes both mine. So for RMS(one) Risk Modeler, these are multi-year contracts that we sign. Right now we’re in proof of concept stage as these organisations deploy the software, load up the data and test. The detailed pricing is commercially sensitive and not something that I can disclose. In terms of Snapchat, Facebook, actually Snapchat, Facebook, Google, they operate with a variety of revenue models. In some cases we get a share of advertising, which is predominantly our mode of operation with Facebook. With Snapchat, they pay us a licensing fee to develop content for their platform which is based on usage, based on various performance criteria etc. So it’s a mix. Last question. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Chris Collett, Deutsche Bank Just in the interests of time I’ll just ask one question to Tim. Your previous employer did a very good job of trying to integrate some disparate businesses and create much more of a platform. How are you thinking about the challenge at DMGT, in particular of trying to - the trade-off between allowing an entrepreneurial culture but also trying to get more scale between the different businesses? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Collier, Chief Financial Officer Great question Chris and I think that is the art in the job of trying to drive scale. You need to make sure that you do continue to excite, incentivise your entrepreneurial leadership. There are some things that I think you can consolidate - [Tannoy announcement in respect of minute silence for victims of the Manchester attack] [Minute silence] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paul Zwillenberg, Chief Executive Officer Thank you very much for joining us. We will see you later this year for the Full Year results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

END

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