Introduction Welcome to the UBM Annual Report for 2016. This interactive pdf allows you to easily

197 Pages·2017·5.54 MB·English

Annual Report and Accounts 2016
Introduction
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Annual Report and Accounts 2016
Strategic Report
02 Chairman’s Statement
06 Our Business Explained
08 Business Model
10 Why own UBM?
11 Market Context
13 2016 Highlights
14 Chief Executive’s Review
20 Our People
24 Strategic Priorities and KPIs
26 Strategic Review
UBM Annual RepSort tandr Aaccotuntes 20g16ic Report page 04-44 36 Sustainability Report
Strategic Report 40 Risk Management
Our Business Model 42 Principal Risks
46 Operating and Financial Review
UBM B2B Events: exceptional experiences
for our customers
OUR EXPERTISE Governance Report
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RELATIONSHIPSS eAllNeDrs PARTNERSHIPS 6 7 6Eff2 ecNtiovmenineastsions Committee
Partner with the world’s leading cities, venues, 69 Accountability
exhibition services providers and creative
agencies to deliver more for our customers 70 Audit Committee
76 Relations with Shareholders
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Financial Statements
Tradeshow model in action
104 I ndependent auditor’s report to
CPhl Worldwide 2016 Sales and marketing excellence
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raddisneatd Stechnology and data IncreTasing risk size CBEM/ERSISCE ecnellecxe lanoitareOp 111564533 Sfi SdSieeenscccaptttnoiiicooosiannnal ls567 p::: oECAlmiaccpqpyiultoiasyli etsietor nbusec ntauenrfidet sand
Customer insight and innovation 170 Section 8: Other notes
178 Additional Information
Operating and
179 U BM plc parent company financial
Financial Review page 45-55 Risk Management page 40-44
statements and related notes
Cross linking
Throughout this document we have linked
content together in order to provide a more
coherent and integrated report.
In PDF these link to related content
elsewhere in the document
O nline at www.ubm.com/ar2016
Governance Report page 56-101
1 This section is the Strategic Report in
accordance with the UK Companies Act 2006
(Strategic Report and Directors’ Report)
Regulations 2013
Throughout this document, non-IFRS measures
are noted with an (*) and additional information
on these measures is set out on page 188.
The Board has assessed this report and
Front cover image considers it, taken as a whole, as fair,
Allworld balanced and understandable.
Shanghai
INCREDI BLE THINGS HAPPEN
WHEN PEOPLE COME TOGETHER .
Routes Asia
INCREDI BLE THINGS HAPPEN
Okinawa
WHEN PEOPLE COME TOGETHER .
SSttrraatteeggiicc RReeppoorrtt >> GGoovveerrnnaannccee RReeppoorrtt FFiinnaanncciiaall SSttaatteemmeennttss
UBM is the world’s leading
‘pure-play’ organiser of
business-to-business
(B2B) events.
Living Events First
Our market-leading events are helping our
customers succeed through the power of
collective, human interactions that ignite
trade, knowledge and networks.
Our 2016 report tells the story of how,
52 weeks of the year, our skills, global reach
and use of technology are delivering value
to our customers and shareholders.
Welcome to our world.
01
UBM Annual Report and Accounts 2016
Strategic Report
Chairman’s Statement
We have taken further significant steps during 2016
in line with our Events First strategy. This strategy of
focusing on events is yielding tangible results for our
shareholders. During 2016 we returned £244m to
shareholders, increased our exposure to events
through the Allworld Exhibitions acquisition
and delivered a strong financial performance.
Dame Helen Alexander Chairman
Revenue1
Key Board activities during the year
£863.0m
Strategy People
+12.1% 2015: £769.9m
• Completed PR Newswire disposal • Approved the new proposed 2017
Adjusted operating profit* margin1 • Held two-day Board and Executive Remuneration Policy after
27.2% Committee strategy meeting shareholder consultation
focusing on the implementation • Reviewed Group-wide talent
of Events First management strategies and
+1.6% pts 2015: 25.6% • Acquired Allworld Exhibitions, progress
Business Journals Inc. and Content • Engaged with key employee groups,
Reported operating profit margin1
Marketing Institute including high potential female
17.7% (2015: 18.8%)
talent on diversity in UBM
Diluted adjusted EPS*1 Values and
39.7p governance Financial
• Continued the Board succession • Approved 2015 financial results
+31.0% 2015: 30.3p planning process, appointing two • Approved 2016 interim results
new Independent Non-Executive • Maintained the progressive
Diluted reported EPS1 20.1p
Directors dividend policy
(2015: 18.2p)
• Completed the annual Board
effectiveness review and
Dividend per share implemented its recommendations
22p
+1.9% 2015: 21.6p
Governance pages 56–101
1 Continuing Group only
02
Strategic Report > Governance Report Financial Statements
Strategic progress as well as it possibly can, across
This year we have taken further steps all areas of responsibility. To the
to shape UBM. In June we completed left you can see a summary of the
the disposal of PR Newswire (PRN), Board’s key activities in 2016.
returned £244m to shareholders
and, in December, reinvested the Sustainability
remaining proceeds in acquiring Sustainability remains a principal tenet
the attractive Allworld Exhibitions of our business and on page 36 you can
(Allworld) business, focused on read more about our progress this year.
Asia. These steps strengthened I would like to highlight the following:
our position as the leading ‘pure-
play’ B2B events organsiser. In 2016, UBM received two awards from
the Carbon Disclosure Project (CDP)
The Events First strategy is now for prior year carbon reductions and
yielding results. In the Chief setting a science-based target for
Executive’s Review (on page 14) you future carbon reductions. We extended
will find details of our progress and our sustainability goals to include our
We are confident
its impact on the business. We will events and launched the ‘Sustainable
continue to build on these initiatives. 10’ across UBM – a simple ten-point
in our Events First
plan for enhancing event sustainability.
2016 performance strategy and
UBM performed well in 2016. UBM is also making good progress
Continuing diluted adjusted EPS* in gender equality in the workplace, expect it to deliver
was 39.7p up 31.0%. The Board something I feel particularly passionate
believes this is a strong performance about. With Trynka joining, UBM now sustainable value
and illustrates good progress. has four female members on the Board
for shareholders in
and was ranked joint 11th in the
Board changes FTSE 250 in the Hampton-Alexander
2017 and beyond
As UBM has changed we have continued review of performance at board level.
to refresh the membership of the Board. This report includes reference to
gender pay gaps and the Company
In March Trynka Shineman, who is is committed to analysing and
CEO of Vistaprint, was appointed addressing any inconsistencies. Having
as a Non-Executive Director. the data, and then identifying the
Trynka, who is based in the US, patterns, is a significant first step
brings strong strategic marketing, in finding the solutions to achieving
e-commerce and digital expertise. a better balanced workforce.
In November David Wei, who is based Looking forward
in China, joined the Board as a Non- I look forward to seeing further
Executive Director. As the former progress as we integrate Allworld
CEO of Alibaba.com and current and continue to implement Events
Chairman and Founding Partner of First. In 2017, we will be looking for
Vision Knight Capital, David brings improvements in our underlying
outstanding knowledge of the internet, growth and the margin as we create
e-commerce, consumer retail and the best platform in the industry.
B2B services industries in Asia. Despite increasing uncertainty in
the world, our exhibitors and visitors
Finally, I would like to thank continue to do business across
Pradeep Kar, who stepped borders, and we will continue to help
down in September having them make the most of the many
served as a Non-Executive Director opportunities in global trade that exist.
since 2006. His experience,
judgement and wisdom have been
of great value to UBM as it has
transitioned to become the leader
in global events that it is today.
Governance Dame Helen Alexander
I remain committed to ensuring Chairman
that the Board continues to work
effectively and serves stakeholders
03
LET’ S GET
TO KNOW
EACH OTHER
04
Strategic Report > Governance Report Financial Statements
Game Developers Conference
San Francisco
Strategic Report
02 Chairman’s Statement
06 Our Business Explained
08 Business Model
10 Why own UBM?
11 Market Context
13 2016 Highlights
14 Chief Executive’s Review
20 Our People
24 Strategic Priorities and KPIs
26 Strategic Review
36 Sustainability Report
40 Risk Management
42 Principal Risks
46 Operating and Financial Review
05