Informa : 2020 Half-Year Results (Statement)

Informa LEI: 5493006VM2LKUPSEDU20

Informa PLC Press Release

21 September 2020

2020 Half-Year Results and COVID-19 Action Plan

Stability and Security through 2021 & beyond

Informa (LSE: INF.L), the Information Services, Advanced Learning, B2B Exhibitions and Events Group today announced its financial results for the six-months ended 30 June 2020, alongside an update on its ongoing actions to ensure Stability and Security through 2021, amid continuing COVID-19 disruption.

• H1 2020 Results:Adjusted Operating Profit1 of £118.6m (H1 2019: £435.7m) on revenues of
  £814.4m (H1 2019: £1,407.6m), amid significant pandemic-impact on physical Events business; COVID-19non-cash impairments and exceptional costs impact statutory pre-tax loss of £739.9m;
• Data & Depth:Continued strong demand for specialist data and intelligence helping offset COVID- 19 disruption to physical Events, with solid performance in Subscriptions businesses and specialist B2B brands, underpinned by Informa's geographic breadth and depth of customer relationships;
• Recovery & Return:Physical Events business in Mainland China back to operating capability, with
  20 further B2B events scheduled before year-end, highlighting recovery potential as permissions return and confidence rebuilds; elsewhere, customer engagement remains high with continued commitment to forward bookings and growing participation in virtual events;
• COVID-19Action Plan:Group announces next stage of its ongoing COVID-19 Action Plan to support Colleagues, stabilise the business and secure baseline full-year revenues of c.£1.7bn/£1.7bn-, including extending The Postponement Programme to mid/late Spring 2021 and expansion of the Cost Management Programme to deliver more than £600m+ of savings by year-end;
• 2021 Cashflow Positive:Combination of lower costs, more efficient financing and effective cash management will secure positive monthly cashflow position by January 2021, even assuming no physical events activity other than shows within Mainland China and outdoor events.
• Balance sheet & Financing Security:Current liquidity of £2.8bn, with intention to renegotiate or repay US private placement notes, combined with planned issue of around £500m equivalent Euro Bonds, extending drawn debt maturity through to 2023.

Stephen A. Carter, Group Chief Executive, Informa PLC, said:

"Despite the first-half disruption to physical Events businesses caused by the pandemic, we are seeing strong demand and resilience in our specialist Subscriptions, Data and Content, reflecting the power of our brands and depth of geographic reach and customer relationships. Encouragingly, we have also seen our physical Events business recover in Mainland China, whilst our increasing participation in virtual events is maintaining our brands, developing our digital services and enhancing our data capabilities."

"We have extended our COVID-19 Action Plan to deliver further business stability and security through to the end of 2021. This package of measures extends our Postponement Programme to mid/late Spring 2021, further lowers costs, reduces cash expenditures and strengthens our balance sheet, underpinning full year revenues of c.£1.7bn/£1.7bn-, which will also serve as our baseline for 2021."

He added: "The combination of our resilient Subscriptions-led businesses and the actions we are taking position Informa securely through to the end of 2021. We remain confident that Informa will emerge from the pandemic with Stability and Security, delivering long-term sustainable growth and shareholder value."

1

Informa PLC | 2020 Half-Year Results and COVID-19 Action Plan

informa.com

H1 2020 Key Highlights

Financial results reflect the impact of COVID-19 and Informa's effective response through its Postponement Programme, Cost Management Programme and financing activities:

• Statutory Group Revenue: £814.4m (H1 2019: £1,407.6m), reflecting robust performance by Subscriptions-led businesses and good start to the year by Events-led businesses, before COVID- 19 disruption and launch of major programme to reschedule events;
• Adjusted Operating Profit1: £118.6m (H1 2019: £435.7m), with close to £300m of direct and indirect cost savings in H1;
• Statutory Operating Loss: First-half loss of £739.9m (H1 2019 profit: £248.3m), reflecting lower revenue, intangible amortisation (£148.2m), COVID-19non-cash impairments (£592.9m) and exceptional costs (£43.4m);
• Free Cash Flow1: £71.3m (H1 2019: £306.4m), with resilient cash conversion, reflecting effective cost management and cash controls, with low levels of customer refunds in H1;
• Net Debt: £1947.9m (H1 2019: £2846.0m), with a leverage ratio of 2.3x (H1 2019: 2.7x), supported by positive free cash flow, equity raise and retained cash facilities;
• Chairman Succession: In March, the Chairman's succession process was paused to enable the
  Group to focus on the Stability and Security of Informa through 2020/2021. The Group now has a clear path into and through 2021 and, therefore, the Chairman succession process, which was previously well progressed, has resumed with the aim of concluding by year-end, with a detailed update at the Group's Nine-Month Trading Statement in early November.

COVID-19 Action Plan

Following the delayed recovery and return to business in North America and EMEA, Informa is moving to the next stage of its COVID-19 Action Plan:

• Postponement Programme Extended to Spring 2021:Programme to reschedule physical events to later dates has been extended to mid-late Spring 2021, maximising the revenue opportunity from physical events, supported by increasing commitment to and experience in virtual events;
• Effective Cost Management:Move to the next stage of the Group's Cost Management Programme, with around £400m direct savings to adjusted operating profit and £200m+ annualised indirect savings by year-end, supported by a Voluntary Severance Programme, a 2020/21 Sabbatical Programme, a Balanced Working Programme and targeted compulsory redundancies largely in North America and EMEA, aligning the 2021 cost base to the revenue outlook;
• 2021 Cashflow Positive:Strength of B2B brands and focus on cash management reflected in customer commitment to forward bookings, with refunds less than 15% of Events gross cash collections. Combined with additional cost measures and increased financing efficiency, delivering positive monthly cashflows in January 2021, even if physical events activity remains limited to domestic trade shows in Mainland China and outdoor events;
• Ongoing Colleague Support:Further measures to support the safety and wellbeing of Colleagues, including increased working flexibility though the introduction of the Balanced Working Model;
• Further Financing Flexibility:Current liquidity of £2.8bn and average debt maturity of 5.4 years. Intention to renegotiate or repay US private placement notes, removing point covenant, combined with planned issue of around £500m equivalent Euro-bonds,extending drawn debt maturity to

2023.

1In this report we refer to non-statutory measures including underlying results, as defined in the Financial Review on page 8 and Glossary on page 58.

Enquiries

Stephen A. Carter, Group Chief Executive	[phone]
Gareth Wright, Group Finance Director	[phone]
Richard Menzies-Gow, Director of IR & Communications	[phone]
Tim Burt / Zoe Watt - Teneo	[phone]
2	Informa PLC | 2020 Half-Year Results and COVID-19 Action Plan	informa.com

H1 2020 Financial Summary

			H1 2020		H1 2019	Reported		Underlying1
			£m		£m	%	%
	Revenue		814.4	1,407.6	(42.1)	(26.2)
	Statutory operating (loss)/profit		(739.9)	248.3	n/a
	Adjusted operating profit2		118.6	435.7	(72.8)	(54.0)
	Adjusted operating margin (%)2		14.6	31.0	(52.9)
	Operating cash flow2		183.5	415.1	(55.8)
	Statutory (loss)/profit before tax		(801.2)	232.8	n/a
	Adjusted profit before tax2		71.0	377.8	(81.2)
	Statutory diluted earnings per share (p)		(56.9)	14.4	n/a
	Adjusted diluted earnings per share (p)2		5.0	23.1	(78.4)
	Dividend per share (p)		n/a	21.9	n/a
	Free cash flow2		71.3	306.4	(76.7)
	Net debt (inc IFRS 16)2		1,947.9	2,846.0	(31.6)
	H1 2020 Divisional Highlights
			H1 2020		H1 2019	Reported		Underlying1
			£m		£m	%	%
	Informa Markets
	Revenue		284.7		722.0	(60.6)	(45.1)
	Statutory operating (loss)/profit		(380.9)		136.6	n/a
	Adjusted operating profit2		12.0		253.2	(95.3)	(91.5)
	Adjusted operating margin2 (%)		4.2		35.1
	Informa Connect
	Revenue		65.5		141.6	(53.7)	(42.6)
	Statutory operating (loss)/profit		(148.0)		7.9	n/a
	Adjusted operating (loss)/profit2		(20.0)		17.7	n/a		n/a
	Adjusted operating margin2 (%)		n/a		12.5
	Informa Tech
	Revenue		59.8		109.0	(45.1)	(7.4)
	Statutory operating (loss)/profit		(300.1)		15.9	n/a
	Adjusted operating (loss)/profit2		(16.5)		29.0	n/a		n/a
	Adjusted operating margin2 (%)		n/a		26.6
	Informa Intelligence
	Revenue		147.9		183.2	(19.3)	1.8
	Statutory operating profit		29.2		20.3	43.8
	Adjusted operating profit2		47.8		42.8	11.7	27.5
	Adjusted operating margin2 (%)		32.3		23.4
	Taylor & Francis
	Revenue		256.5		251.8	1.9	(0.7)
	Statutory operating profit		59.9		67.6	(11.4)
	Adjusted operating profit2		95.3		93.0	2.5	2.5
	Adjusted operating margin2 (%)		37.2		36.9

1In this document we refer to Underlying and Reported results. Underlying figures are adjusted for acquisitions and disposals, the phasing of events including biennials, the impact of changes from new accounting standards and accounting policy changes, and the effects of currency. It includes, on a pro-forma basis, results from acquisitions from the first day of ownership in the comparative period and excludes results from sold businesses from the date of disposal in the comparative period. Reported figures exclude such adjustments. Alternative performance measures are detailed in the Glossary.

2In this document we also refer to Statutory and Adjusted results, as well as other non-statutory financial measures. Adjusted results are prepared to provide an alternative measure to explain the Group's performance. Adjusted results exclude adjusting items as set out in Note 4 to the Financial Statements. Operating cash flow, free cash flow, net debt and other non-statutory measures are discussed in the Financial Review and the Glossary.

3

Informa PLC | 2020 Half-Year Results and COVID-19 Action Plan

informa.com

Trading Outlook

The demand for specialist knowledge and information remains resilient. This is reflected in solid trading and good visibility in the majority of Informa's Subscription-ledbusinesses and high levels of engagement and activity across the Group's other digital content, media, marketing services and virtual event businesses.

The strength of these businesses, combined with the quality of Informa's other B2B brands, broad geographic reach and strong customer relationships, is providing stability and security in the face of the significant, ongoing impact of COVID-19 on the Group's physical events portfolio.

The COVID-19 pandemic continues to have a more volatile and far-reaching impact around the world than initially predicted. Over recent months, whilst Government control restrictions have been gradually relaxed in many countries, more often than not this has been followed by a resurgence in infections and an increasing cycle of on/off targeted local lockdowns and extended travel restrictions.

This includes in North America, Informa's largest market for physical events, and also across EMEA. We had previously anticipated events in these regions would gradually resume through the summer, before picking up from September. However, this has not been possible, leading to £1bn+ of budgeted physical events revenue being cancelled this year and more than £450m since June.

By contrast, our physical events business in Mainland China is now back to operating capability and, combined with growth in virtual events, specialist media and marketing services, is helping to offset some of the weakness in North America. Full year Group revenue is now expected to be in the range of c.£1.7bn/£1.7bn-, with Informa tracking closer to the Vigilant Scenario outlined in our April and June updates. As a consequence, we have moved to the next stage of our COVID-19 Action Plan, including the delivery of £600m+ cost savings to adjusted operating profit in 2020, with direct savings of around £400m and £200m+ annualised indirect savings by year-end.

Subscription-led Businesses (c.54% of H1 Revenue):

Our portfolio of subscriptions-led, specialist knowledge and information businesses remain resilient, underpinned by forward-booked subscriptions, with strong visibility and attractive cash flows.

Taylor & Francis

Taylor & Francis continues to perform well. In Research Publishing, consistent levels of growth are underpinned by high renewal rates for journal subscriptions and further positive momentum across open access. The outcome for 2020 is now largely secure and focus is turning to 2021, as the new university year approaches and the annual subscription renewal season gets underway.

Advanced Learning also remains a robust business and whilst it has seen some impact from COVID-19 on its supply chain and US retail business, trading has started to return to more typical patterns over recent months.

Informa Intelligence

Our B2B Information business continues to deliver predictable underlying growth, reflecting the quality of its specialist intelligence, valuable data and targeted customer solutions.

Pharma Intelligence is trading particularly strongly. Following recent investment to upgrade our technology platforms, we are delivering greater functionality to our customers through enhanced APIs and workflow tools, and this is reaping benefits in a market currently buoyant with activity.

As we approach a key period for subscriptions, overall momentum is good, with renewal rates high, new business pipelines strong and annualised contract values positive. This gives us confidence we will deliver further resilient growth in the second half of the year.

Informa Tech: Research & Data

Omdia is progressively establishing its brand with customers, supported by a steady flow of new research and enhanced data products. As its reputation grows, we continue to target a gradual improvement in performance and growth.

4

Informa PLC | 2020 Half-Year Results and COVID-19 Action Plan

informa.com