REG - Informa PLC - Capital Markets Day - Growth Acceleration Plan II

InformaAnnouncement

07/12/2021 12:00

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RNS Number : 7554U  Informa PLC  07 December 2021

Informa PLC Press Release

7 December 2021

2021-2024 Growth Acceleration Plan II

New Informa: Accelerated growth and portfolio focus

Informa (LSE: INF.L), the international B2B Markets, Knowledge Services and
Business Intelligence Group will today outline its 2021-2024 Growth
Acceleration Plan ("GAP II") at a Capital Markets Day in London.

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

 "Today we are announcing Informa's growth and acceleration plan for the next
 three years, which commits the Group to faster growth and increased investment
 in the two markets where we have leading brands and leadership positions of
 scale: Academic Markets and B2B Markets."

 He added: "As part of this investment and growth strategy we are starting a
 process to divest our portfolio of high quality, high performing brands in
 Informa Intelligence, thereby unlocking value and providing the funds to
 further strengthen our position in our two growth markets."

 He concluded: "By concentrating on these growth markets, we will expand our
 Academic and Events businesses at pace through focused investment, accelerated
 digital growth and targeted acquisitions."

2021-2024 GAP II

Informa is announcing a three-year programme with the ambition to create a
more focused, higher growth business. Our ambition is to return Group revenues
above 2019 levels (rebased for divestments) by the end of GAP II in 2024,
whilst returning significant capital to shareholders in 2022.

The GAP II programme will prioritise the following six areas:

1.    Portfolio Focus: Informa will focus and accelerate its investment
and efforts on the two markets where it has leadership positions of scale and
which offer attractive opportunities for further growth and expansion:
Academic Markets & Knowledge Services (Taylor & Francis) and B2B
Markets & Digital Services (Informa Markets, Informa Connect, Informa
Tech). The Group plans to divest Informa Intelligence which, although smaller
in the context of the Group, has been transformed into a high-quality,
high-performing and high-value portfolio of brands through targeted GAP I
investment. Divestment will unlock the full extent of this value, providing
funds to accelerate investment and expansion in our two businesses with scale
leadership positions.

2.    Digital and Data: Our strategy of Market Specialisation continues to
build depth in our chosen specialist markets and subject categories.

In Academic Markets, we will further expand our position in Open Research,
strengthening our service offering and extending our customer reach to double
underlying growth to 4%+ by 2024.

In B2B Markets, we will accelerate growth through the continued return of B2B
Events and further expansion in B2B Market Access, including accelerating the
rollout of Smart Events services, expanding in Audience Development
(content-led lead generation programs, increasingly differentiated by data
segmentation) and building a position in B2B Digital Demand Generation (data
analytics that provide intent-based, qualified B2B buyers and sales
prospects). This range of Digital Services expands our addressable market,
providing access to broader customer budgets and additional opportunities for
growth. Data lies at the heart of all these GAP II growth plans and is
underpinned through our continued investment in our proprietary B2B customer
data and analytics engine, IIRIS.

3.    Leadership & Talent: To Champion the Specialist remains our
driving purpose and nowhere is that clearer than in the depth of Specialist
talent in the Group. The GAP II programme will see continued investment in
deepening our talent, with a particular focus on further strengthening our
digital and data capability in key areas such as Digital Product Management,
Data Science, Audience Engagement and Digital Marketing.

4.    Investment: The Group will invest up to £150m in incremental capital
and net operating expenditure through the 2021-2024 GAP II period, funding
programmes to expand our range of digital services and accelerate the pace of
underlying growth. By 2024, this investment is expected to generate
£150m-£200m of incremental revenue and a growing contribution to operating
profit. Further growth acceleration will be driven by focused M&A that
strengthens our existing market positions and accelerates our expansion in new
areas. Today, we have announced the addition of the Premiere portfolio of B2B
Events serving the growing US Professional Beauty & Personal Care market,
as well as an investment in the Totem Smart Events platform and the addition
of US-based NetLine, which brings established capabilities in Audience
Development and B2B Digital Demand Generation.

5.    Shareholder Returns: Subject to full sale, completion and receipt of
proceeds from the divestment of Informa Intelligence, the Group intends to
return £1bn of embedded value to shareholders through the combination of a
share buyback programme and a special dividend. This proposed return of
capital is in line with the current balance sheet carrying value of these
businesses and will, when completed, leave the remaining proceeds - which
reflect the value created through GAP I in Informa Intelligence - to fund the
next phase of accelerated growth at Informa through GAP II.

In addition, improving visibility and continued strong growth in free cash
flow will see the Group resume ordinary dividends with the 2022 Interim
Dividend, at an initial annual pay-out ratio of one third of annual adjusted
earnings.

6.    FasterForward: Informa was an early adopter of sustainable business
practises that are embedded within GAP II. Through the 2021-2024 GAP II
period, as part of our wider FasterForward programme, all products within
Academic Markets & Knowledge Services will be certified Carbon Neutral
Products and, within B2B Markets & Digital Services, in North America and
EMEA we will deliver:

·      Energy - all B2B Events will be powered by renewable electricity;

·      Waste - all B2B Events will be part of the Better Stands
programme, eradicating single use exhibition stands;

·      Content - all B2B Events will incorporate Sustainability Inside,
providing on-site content that accelerates sustainable development in our
customer markets.

·      Carbon - all B2B Events will save our customers more carbon than
we emit, underlining our role as a carbon consolidator;

Capital Markets Day

Informa will today host a Capital Markets Day for analysts and investors from
1pm GMT / 8am EST at 240 Blackfriars in London, providing further details on
our GAP II plans and ambitions. The event will provide the opportunity to meet
with a wide range of Senior Management, a number of whom will be presenting
alongside the Group Chief Executive.

A live stream of the event will also be available at www.informa.com
(http://www.informa.com) .

 Enquiries
 Stephen A. Carter, Group Chief Executive                  +44 (0) 20 7017 5771
 Gareth Wright, Group Finance Director                     +44 (0) 20 7017 7096
 Richard Menzies-Gow, Director of IR & Communications      +44 (0) 20 3377 3445
 Tim Burt / Zoë Watt - Teneo                               +44 (0) 7583 413254 / +44 (0) 7713 157561

Cautionary Statement

This announcement contains forward-looking statements, including in relation
to the financial condition of the Group and the results of operations and
businesses of the Group. Forward-looking statements are sometimes, but not
always, identified by their use of a date in the future or such words and
words of similar meaning as "ambition", "anticipates", "aspire", "aims",
"due", "could", "may", "will", "should", "expects", "believes", "intends",
"plans", "potential", "targets", "goal" or "estimates". Although the Group
believes that the expectations reflected in such forward-looking statements
are reasonable, these statements are not guarantees of future performance and
are subject to a number of risks and uncertainties and actual results,
performance and events could differ materially from those currently being
anticipated, expressed or implied in such forward-looking statements. Factors
which may cause future outcomes to differ from those foreseen in
forward-looking statements include, but are not limited to, those identified
in the "Principal Risks and Uncertainties" section of the Group's Annual
Report. Forward-looking statements contained in this announcement speak only
as of the date of preparation of this announcement and have not been audited
or otherwise independently verified. Past performance should not be taken as
an indication or guarantee of future results and no reannouncement or
warranty, express or implied, is made regarding future performance. The Group
therefore cautions against placing undue reliance on any forward-looking
statements. Nothing in this announcement should be construed as a profit
forecast.

Statements in this announcement reflect the knowledge and information
available at the time of its preparation. Except as required by any applicable
law or regulation, the Group expressly disclaims any obligation or
undertaking, including to release publicly any updates or revisions to any
statements contained in this announcement to reflect any change in the Group's
expectations or any change in events, conditions or circumstances on which any
such statement is based.

This announcement does not constitute or form part of any offer or invitation
to purchase any securities of any person nor any offer or invitation to sell
or issue, or any solicitation of any offer to purchase or subscribe for, any
such securities, nor shall it or any part of it, or the fact of its
distribution, form the basis of, or be relied on in connection with, any
contract or commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding any securities.

 

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