Introduction Welcome to the UBM annual report for 2014. This interactive pdf allows you to easily

149 Pages·2015·10.68 MB·English

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‘Events
First’
UBM plc
Annual Report and
Accounts 2014
UBM is a global business-to-business
(B2B) marketing services and
communications company, whose
primary focus is Events
We help businesses do business
by connecting them with a targeted,
qualified audience, through live events,
press releases and other digital and
print media
Strategic Report Financial Statements Cross linking
Overview1 75 Independent auditor’s report Throughout this document we have linked
02 2014 Highlights to the members of UBM plc content together in order to provide a more
04 At a Glance¹ 80 Consolidated income statement comprehensive report
06 The UBM Business Model 81 Consolidated statement
08 Chairman’s Statement of comprehensive income
82 C onsolidated statement I nside the Strategic Report, Governance
Strategic Review1 of financial position Report and Financial Statements
83 Consolidated statement
10 Strategy
of changes in equity Online at www.ubm.com/ar2014
20 Risk Management
84 Consolidated statement
of cash flows
Operating and Financial Review¹ 85 Section 1: Basis of preparation 1 These sections, taken together, comprise the
24 Results overview 88 Section 2: Segment information Strategic Report in accordance with the (UK)
28 Events overview 90 Section 3: Operating profit and tax Companies Act 2006 (Strategic Report and
30 Other Marketing Services (OMS) overview 97 Section 4: Financial position Directors Report) Regulations 2013
31 PR Newswire overview 107 Section 5: Capital structure
32 Sustainable Performance and financial policy
34 Financial Review 118 Section 6: Acquisitions and disposals
126 Section 7: Employee benefits
133 Section 8: Other notes
135 Additional Information
Governance Report 136 Parent Company profit and
loss account
40 Board of Directors 137 Parent Company balance sheet
42 Executive Committee 138 Notes to the Parent Company
44 Corporate Governance Statement financial statements
50 Nomination Committee 143 Glossary: Explanation of
51 Audit Committee UBM’s non-IFRS measures
54 Directors’ Remuneration Report 144 Shareholder information
71 Directors’ Report ibc Financial calendar 2015
ibc Cautionary statement
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Faudljluys dteildu tEePdS 1* Copaesrha gtieonnesrated from
-8.2% +2.4%
performance in 2014
RChoibefe Frtin Ganraciyal Offi cer 37.5p37.0p41.6p38.1p 203.7189.8165.8169.8
’11 ’12 ’13 ’14 ’11 ’12 ’13 ’14
ROACE* NEBetIT dDeAb*t/adjusted
-430 bps 0.6x
14.6%15.4%17.7%13.4% 2.4x2.5x2.2x2.8x2
The Audit Committee, as set out in its terms of reference,
has assessed this report and has recommended to the Board ’11 ’12 ’13 ’14 ’11 ’12 ’13 ’14
12 APrdojufosrtmeda tfoo rr eAfl devcatn rsigtahrt sE iBsIsTuDeA. F roerd mucoerse rdaetitoa itl os e2e.2 Nxote [(cid:127)] on page [(cid:127)]
that, in their opinion, it is fair, balanced and understandable.
24UBM Annual Report and Accounts 2014 UBM Annual Report and Accounts 201425
John McConnell (Chairman)
Alan Gillespie
Greg Lock
Terry Neill
Jonathan Newcomb
By Order of the Board
Mark Peters
Company Secretary
UBM Annual Report and Accounts 2014 01
Strategic Report
2014 Highlights
Strategic
UBM has made On 18 December UBM acquired
significant strategic Advanstar. Advanstar is an events
progress during 2014 and marketing services business that
serves business professionals in the
New ‘Events First’ strategy
fashion, licensing, life sciences,
uuIn November, UBM set out its new
strategy to become the world’s leading automotive and powersports sectors
B2B events business
Trade shows Publications Websites/digital
Continued organic growth1
products
uuTotal group revenues grew 3.6% on
54 30 194
an underlying basis2*
Further portfolio management1
Employees Revenue from
uuAs well as Advanstar (see right), UBM North America
acquired three other events businesses
which complement its presence in the 557 96%
maritime, construction and hospitality
sectors, and enhance its global
operations, particularly in Mexico
What this means for UBM
uuDuring the year, we rationalised various
Other Marketing Services (OMS) uuIncreases UBM’s focus on uuAdds an attractive portfolio of large
Events to c63% of revenues3 and events – six Advanstar events would
activities which were not closely
c74% adjusted operating profit3 rank among UBM’s 2014 Top 20
aligned with our Events business
events by revenue
uuMarket leadership in US
Continued focus on fashion vertical uuAligns the geographic mix of events
sustainable performance1 revenues more closely with the
uuCreates the largest events global events market – with 41%
uuPeople and culture initiatives have business in the US4 from the US
continued to progress during 2014 and,
in November, Eleanor Phillips joined
UBM as Group HR Director
uuFurther progress with environmental
initiatives including becoming one of
only six organisations to achieve the
Carbon Trust Standard globally
Improved balance sheet flexibility
uuThe financing of the Advanstar
acquisition has improved UBM’s
balance sheet flexibility
Further reading 3 Based on pro forma numbers assuming UBM had
1 Pre ‘Events First’ Stategic Priorities Strategic Report: pg 26 owned Advanstar from 1 Jan 2014 – for more details
2 All non-IFRS measures are noted with a ‘*’ and Financial Statements: pg 118 about the 2014 financials of Advanstar see page 26
additional information on these measures is set out on 4 Based on aggregation of UBM and Advanstar 2013
page 143 www.ubm.com/ar2014 revenues according to AMR 2014 Globex report
02 UBM Annual Report and Accounts 2014
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Financial
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Our underlying performance has continued an
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to improve despite currency headwinds ep
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adversely impacting our reported results
Revenue Underlying revenue growth*
Down 6.0% (2013: £793.9m) (2013: +2.3%)
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Adjusted operating profit margin* Fully diluted adjusted EPS*
(2013: 23.5%) Down 8.2% (2013: 41.6p5)
24.1% 38.2p
pg 27 & 34 pg 27
Cash generated from operations ROACE*
Up 2.4% (2013: £165.8m) (2013: 17.7%)
£169.8m 13.3%
pg 27 & 38 pg 27 & 39
5 Adjusted to reflect rights issue * All non-IFRS measures are noted with a ‘*’ and
additional information on these measures is set
out on page 143
Operational
New CEO Formation of UBM Americas
uuOn 6 May Tim Cobbold took up his uuIn September, UBM Americas was
role as CEO and joined the Board created, consolidating UBM’s three
events-led marketing services
businesses in North and South
Growth in Events
America
uuUBM ran more than 350 events
during 2014. The net square metres
Restructuring of OMS
of floor space at our annual events
increased by 7% to 1.6m while visitor uuFurther management action taken
numbers increased by 15% to increase alignment between OMS
to 2.2m and Events
Growth in PR Newswire
uuIncreased adoption of multimedia
– during 2014 51,000 US releases
included multimedia content
(2013: 31,000)
UBM Annual Report and Accounts 2014 03
Strategic Report
At a Glance1
Activities 2014 Top 20 Events1
and visitor numbers
CPhI China
The Interiors Show
Events 40,000
26,000
We organise tradeshows and other Interop Furniture China
live ‘in person’ events which help Las Vegas World Routes
92,000
businesses to do business, transact, 9,000 4,000
learn and network as part of a
professional or commercial community Black Hat Ecobuild IFSEC Children-Baby-
Maternity-Expo
USA 41,000 34,000
77,000
Other 10,000
Marketing Services
We offer a range of high quality,
sector-specific digital and print products
(such as community websites, digital Enterprise Connect ICSE
directories and print publications). 6,000 7,000 Hotelex Sign China
These enable our clients to reach their 99,000 89,000
target audiences or enhance their CPhI Worldwide
professional knowledge and can Game Developer 29,000
Conference
improve both attendee and exhibitor
experiences at our events 24,000 Cruise Shipping
Miami
10,000 Hong Kong
PR Newswire Jewellery & Gem (June)
35,000
PR Newswire is one of the world’s MD&M West
largest press release distributors 17,000 Hong Kong
and a leading distributor of premium Cosmoprof Asia Jewellery & Gem (Sept)
releases in the US and Canadian 70,000 59,000
markets. Its core products enable
organisations to communicate and
reach targeted audiences across
a range of digital and traditional Geographies
media channels
2014 revenues by segment1 We are an international business with good
exposure to mature growth markets and
Events a strong presence in faster growth
Other Marketing Emerging Markets3
27% Services
PR Newswire Revenue by geography1
60% 11%
13%
2%
9%
45%
2014 adjusted operating
profit* by segment1,2
Events
33%
Other Marketing
23% Services
PR Newswire
North America
5% Emerging Markets3
Continental Europe
72% UK
ROW
3 Emerging Markets constituents are the non-G10
1 These figures exclude Advanstar countries – notably for UBM: Mainland China,
2 Adjusted operating profit before corporate costs Hong Kong, India, Brazil, Turkey, Malaysia, Indonesia,
Thailand, Singapore and Mexico
04 UBM Annual Report and Accounts 2014
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2014 Top 20 Events1
and visitor numbers G
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26,000 nc
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Interop Furniture China ep
Las Vegas World Routes o
92,000 rt
9,000 4,000
Ecobuild IFSEC Children-Baby-
Black Hat
Maternity-Expo
USA 41,000 34,000
77,000
10,000
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Enterprise Connect ICSE en
6,000 7,000 Hotelex Sign China ts
99,000 89,000
CPhI Worldwide
Game Developer
29,000
Conference
24,000 Cruise Shipping
Miami
10,000 Hong Kong
Jewellery & Gem (June)
35,000
MD&M West
17,000 Hong Kong
Cosmoprof Asia Jewellery & Gem (Sept)
70,000 59,000
UBM Commitments Industry Verticals
In 2014, we launched the UBM We have strong brands serving Revenue by industry verticals¹
Commitments to articulate UBM’s professional and commercial
purpose and values, and to set out communities in a wide range of
7%
what sort of company we are and fast-growing industry verticals 4% 26%
what we aspire to be in the future. 7%
We undertook a year-long programme As a result we have a diversified
of activities and events to help all UBM customer base – our largest customer 7%
employees understand and explore accounts for just 0.4% of continuing
the Commitments in their everyday revenues – and we are not overly 10% 16%
working life. exposed to the fortunes of any
one sector
10%
uuWe work collaboratively 13%
uuWe put customers at the News Advanced
heart of what we do Distribution Manufacturing
Technology Built Environment
uuWe serve our communities Lifestyle Trade & Transport
Ingredients Other
Fashion
uuWe bring passion and expertise
uuWe are bold
uuWe do the right thing
UBM Annual Report and Accounts 2014 05
Strategic Report
The UBM Business Model
A virtuous circle: by delivering value to our
customers, principally through live events, UBM
creates financial returns which are then used to
further enhance our overall value proposition
Dividends Events
Acquisitions ns Valu OStheervri cMeasrketin
ur e g
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ent on
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ani ire
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genetrong c mployee
r a
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tionh fl ow ment Skilled
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Attractive prof tOabuitlcitoyme V alu e EnRhealnatioknnsohiwlpes d&ge
Quality revenues International fo ot p rint
06 UBM Annual Report and Accounts 2014
Value Creation
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What do we provide for our customers? gic
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Events Other Marketing Services PR Newswire rt
uuTradeshows to help customers uuContent rich community websites uuDistribution network (to digital and
transact, build brand awareness or online publications for knowledge traditional media) to help businesses
and network sharing and as a medium for advertising convey a message or content to
uuConferences and seminars to uuOnline product finders and digital a particular audience
enhance professional knowledge directories to help customers transact uuWorkflow tools to help them create G
o
and network and build brand awareness and manage their messaging or ve
rn
uuAwards ceremonies and other uuPrint publications as a medium content, to target the audience anc
social events to network and for advertising and enhancing and monitor the response e R
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build brand awareness professional knowledge p
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Value Enhancement
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How do we add value for our customers? c
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uuWe have strong relationships and uuWe help our customers achieve a uuWe have strong management – with tem
e
knowledge of the industries we return on their investment through breadth and depth of experience in n
ts
serve insight and innovation the markets we serve
uuWe have strong brands and marketing uuWe innovate to enhance the uuWe have 4,661 employees globally
skills to deliver qualified audiences experience for our customers and who share our values – The UBM
uuWe have operations in 28 countries so the audience Commitments (see page 5)
we can help customers who seek uuWe have the technology and expertise
international reach to maximise opportunities both online
and off-line
Outcome
What is the outcome for UBM?
Growing sustainable revenues Attractive margin Best platform
uuUnderlying Group revenue growth uuEvents margin 31.2% in 2014 uuLow capital intensity and strong
of 3.6% during 2014 uuOther Marketing Services working capital generation
uu75% of Events revenues from margin 11.0% in 2014 uuHigh discretionary cash flow
exhibitors paying for space uuPR Newswire margin 22.9% in 2014
uuPR Newswire revenue under contract
in North America increased to 31%
in 2014
Returns
What is the profit used for?
Organic investment Acquisitions Dividends
uuWe invest in, for example: customer uuWe have a good track record of uuWe understand the importance of
insight, innovation (technological and bolt-on acquisitions, particularly dividends to our shareholders and
experiential), new events launches, in Events, which enhance the pursue a progressive dividend policy
infrastructure (international and overall portfolio targeting 2x cover through the
technological) and process economic and biennial cycle
enhancements
UBM Annual Report and Accounts 2014 07