Results Presentation Half year ended 31 March 2021 - Thursday, 27 May 2021 - DMGT
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Results Presentation
Half year ended 31 March 2021
Thursday, 27 May 2021
Paul Zwillenberg, CEO
Tim Collier, CFO
Karen White, RMS CEO
© 2021 DMGT
Disclaimer
Certain statements in this presentation are forward looking statements. Those statements This presentation does not constitute
can be identified by the fact that they do not relate only to historical or current facts. or form part of any offer or invitation
Those forward-looking statements and statements which contain the words “anticipate”, to sell, or any solicitation of any offer
“believe”, “intend”, “estimate”, “expect” and words of similar meaning, reflect the to purchase any shares in the
Group’s Directors’ beliefs and expectations. By their nature, forward-looking statements Company, nor shall it or any part of it
involve a number of risks, uncertainties or assumptions that could cause actual results or or the fact of its distribution form the
events to differ materially from those expressed or implied by the forward-looking basis of, or be relied on in connection
statements. These risks, uncertainties or assumptions could adversely affect the outcome with, any contract or commitment or
and financial effects of the plans and events described herein. DMGT believes factors investment decisions relating
that could cause actual financial condition, performance or other indicated results to thereto, nor does it constitute a
differ materially from those indicated in forward-looking statements in the presentation recommendation regarding the
include, without limitation, the ongoing effects of the Covid-19 pandemic; the policies shares of the Company. Past
and actions of governmental and regulatory authorities in the jurisdictions in which performance cannot be relied upon
DMGT operates; the actual or anticipated political, legal and economic ramifications of as a guide to future performance.
the UK’s withdrawal from the European Union; economic, political, social or other
developments in jurisdictions and markets in which DMGT operates; the impact of
competition, and other changes in trading conditions. Forward-looking statements
contained in this presentation regarding past trends or activities should not be taken as
representation that such trends or activities will continue in the future. You should not
place undue reliance on forward-looking statements, which apply only as of the date of
this presentation. DMGT undertakes no obligation to release any update of, or revisions
to, any forward-looking statements, opinions (which are subject to change without
notice) or any other information or statement contained in this presentation.
© 2021 DMGT 2
Introduction
Paul Zwillenberg, CEO
© 2021 DMGT
Agenda
Half Year overview
> Paul Zwillenberg, CEO
Half Year financial performance
> Tim Collier, CFO
RMS business update
> Karen White, RMS CEO
Business and strategy update
> Paul Zwillenberg, CEO
© 2021 DMGT 4
Half Year 2021 overview
Strategy is working and creating value
Performance as expected given market conditions
> B2B Information Services continued to grow
> Events and Exhibitions limited by absence of physical events
> Consumer Media performed well; Metro severely affected by Covid-19 impact
Strategy creating value through active management of the portfolio
> Significant portfolio activity in H1: Hobsons sale, Cazoo investment and planned public listing,
New Scientist acquisition
> Organic investment paying off
> Strong financial position to support future strategy: £293m pro forma net cash
Long-term thinking is in our DNA
> Investing in our businesses and people: all stakeholders benefit from our approach
> Underpins our capital allocation and portfolio management decisions
> Quality and integrity of our content, data, products and services: reputation with customers
© 2021 DMGT 5
Financial performance
Tim Collier, CFO
© 2021 DMGT
Financial Summary: Adjusted numbers
£ million H1 2020 H1 2021 Change % Underlying %
Revenue 690 580 (16%) (12%)
Cash operating income ('Cash OI') 75 66 (11%) (13%)
Operating profit 65 55 (17%) (19%)
Joint ventures and associates (7) (1) (81%) (81%)
Net finance costs (2) (7) +179% +179%
Profit before tax 56 47 (17%) (20%)
Taxation and minority interests (22) (8) (62%)
Profit after tax 34 38 +11%
Earnings per share 15.0 p 16.8 p +12%
Dividend per share 7.5 p 7.6 p +1%
Adjusted tax rate 39% 18%
> B2B Information Services revenue and profit growth more than offset by Events & Exhibitions and Consumer Media
> Increased net finance costs but reduced losses from JVs and associates
> EPS growth due to lower tax rate; H1 2021 tax rate consistent with FY 2020
> Continued real dividend growth
© 2021 DMGT 7
Financial Summary: Statutory numbers
£ million H1 2020 H1 2021 Change %
Revenue 642 547 (15%)
Operating profit 35 44 +26%
Profit before tax 77 42 (45%)
Profit for the period 205 253 +24%
Earnings per share 89.7 p 111.3 p +24%
> Revenue, operating profit and PBT exclude Energy Information and EdTech (discontinued operations)
> Profit for the period and EPS include gain on disposal of EdTech
© 2021 DMGT 8
Group revenue, cash OI, and operating profit
£ million H1 2020 H1 2021 Change % Underlying %
Revenue: B2B: Information Services 268 266 (1%) +9%
B2B: Events & Exhibitions 77 4 (95%) (92%)
Consumer Media 345 311 (10%) (13%)
DMGT Revenue¹ 690 580 (16%) (12%)
Cash OI: B2B: Information Services 40 47 +17% +36%
B2B: Events & Exhibitions 5 - (107%) N/A²
Consumer Media 48 39 (19%) (21%)
Corporate costs (18) (20) +10% +12%
DMGT Cash OI¹ 75 66 (11%) (13%)
Operating profit: B2B: Information Services 35 41 +19% +40%
B2B: Events & Exhibitions 5 (1) (110%) N/A²
Consumer Media 44 34 (23%) (25%)
Corporate costs (18) (20) +9% +10%
DMGT Operating profit¹ 65 55 (17%) (19%)
DMGT Cash OI margin 11% 11%
DMGT Operating margin 9% 9%
Notes: (1) Excluding Events & Exhibitions, DMGT Group underlying growth rates were: Revenue (5)%, Cash OI (1)%, Adjusted operating profit (5)%. © 2021 DMGT 9
(2) Events & Exhibitions’ cash OI and adjusted operating profit both reduced by an underlying £9m.
B2B Information Services¹ summary
Revenue, Cash OI and profit growth
£ million H1 2020 H1 2021 Change % Underlying %
Revenue 268 266 (1%) +9%
Cash OI 40 47 +17% +36%
Operating profit 35 41 +19% +40%
Cash OI margin 15% 18%
Operating margin 13% 15%
> Reported figures reflect EdTech and Energy Information disposals and weaker US dollar (H1 ‘21 $1.35; H1 ‘20 $1.28)
> Strong underlying revenue performance: driven by particularly high UK Property Information growth
> Improved margins driven by Property Information
> H2:
Insurance Risk and US Property Information positioned for revenue growth
UK Property Information: strong Q3 revenue growth; expect weaker volumes in Q4 post stamp duty changes
Note: (1) Information Services includes Insurance Risk, Property Information, Ed Tech (sold March 2021) and, in H1 2020, Energy Information (sold November 2019). © 2021 DMGT 10Insurance Risk: RMS
Business remains on track
Revenue and underlying growth Cash OI and margin Operating profit and margin
+2% 0% 17% 16% 16%
17%
£123m £117m £22m £19m
£20m £18m
H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021
> Flat underlying revenues (Q2 +1%): continued growth in product subscriptions offset by reduced
services revenues; strong renewals but Covid uncertainty affecting sales cycle
> Underlying Cash OI (+4%) and profit growth (+7%)
> Weaker US dollar: adverse impact on reported results and margins
> Good progress with deployment of customers to Risk Intelligence platform
> H2:
Business remains on track for modest revenue growth in FY 2021 despite Covid challenges
© 2021 DMGT 11Property Information
UK residential property completions per month to March 2021
120
100
Estimated base
80
Thousands level of c.620k
60 p.a. (equivalent
to c.52k per
40
month): due to
20 ‘3Ds’ – Death,
Divorce, Default
0
Mar’21
Dec'17
Jun'18
Aug'18
Dec'18
Jun'19
Aug'19
Dec'19
Jun'20
Aug'20
Dec'20
Oct'17
Feb'18
Apr'18
Oct'18
Feb'19
Apr'19
Oct'19
Feb'20
Apr'20
Oct'20
Feb'21
> Unusually volatile market: severe impact from lockdown and subsequent pent-up demand
> Benefit of UK stamp duty reductions introduced in July 2020 (due to expire June 2021 and taper to
September 2021)
> Predictable base revenue stream underpinned by c.620k p.a. market transactions due to death,
divorce and default
Note: (1) Based on HMLR Price Paid Data for England and Wales and Landmark estimates for more recent months. © 2021 DMGT 12Property Information
UK residential property transaction volumes
180%
160%
140%
120%
Vs. 2019¹
100%
80%
60%
40%
20%
0%
Jan'20 Feb'20 Mar'20 Apr'20 May'20 Jun'20 Jul'20 Aug'20 Sep'20 Oct'20 Nov'20 Dec'20 Jan'21 Feb'21 Mar'21
New listings Sold subject to contract Searches ordered Completion
> Strong recent completions but less activity at the start of the transaction process
Notes: (1) Chart compares volumes per month as a percentage of the same month in 2019. For example, both Jan’20 and Jan’21 are compared to Jan’19. © 2021 DMGT 13
(2) Source: Landmark’s own data to extrapolate the entire market.Property Information
Strong performance
Revenue and underlying growth Cash OI and margin Operating profit and margin
+20%
21% 19%
(2)%
14% 12%
£115m £22m
£96m £24m
£14m £12m
H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021
> High volumes in the UK residential market during H1: Landmark revenues +24%¹
> US: Trepp revenues +11%¹; benefitting from previous organic investment and economic cycle
> Clear strategies for growth: as presented at February 2021 Investor Briefing
> H2:
UK - Landmark: uncertain impact of changes to stamp duty in Q4
US - Trepp: continued growth; subscription business and encouraging sales pipeline
Investing in future growth opportunities
© 2021 DMGT 14
Note: (1) Underlying revenue growth rates: Landmark +24%, Trepp +11% and total Property Information +20%.EdTech: Hobsons
Successful value creation
Revenue and underlying growth Cash OI and margin Operating profit and margin
+10% 9%
N/A 5%
7%
£42m £4m 3%
£34m £2m
£2m
£1m
H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021
> Business sold for c.$410m in two separate transactions in early March 2021
> Investment in modernising product platforms impacted profitability
© 2021 DMGT 15Events and Exhibitions: dmg events
No significant physical events held
Revenue and underlying growth Cash OI and margin¹ Operating profit and margin¹
+1% 6% 6%
£5m £5m
£77m
(8)% (13)%
£0m £(1)m
(92)%
£4m
H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021
> No major physical events held in H1, as expected
> H1 2021: £2m costs for cancelled or postponed events offset by £10m ($13m) insurance benefit
> H1 2020: £11m costs for cancelled or postponed events; no insurance benefit¹
> H2:
Big 5 Dubai and Gastech (Singapore) both scheduled for September 2021
Events that are held in H2 2021 are expected to be significantly smaller than in 2019
$7m H2 insurance benefit; expect small profit in FY 2021, extreme scenario² c.£15m loss
Notes: (1) H1 2020 Cash OI and operating profit included £11m of costs relating to cancelled events: £3m relating to events scheduled in H1 2020 and £8m © 2021 DMGT 16
to events scheduled in H2 2020. All $20m of the insurance benefit recognised in FY 2020 was in H2 2020.
(2) Extreme scenario assumes no major events held in FY 2021 and c.£2m of written off costs relating to cancelled or postponed FY 2022 events (e.g. ADIPEC
Nov’21). Both the small profit expectation and the extreme scenario include the expected $7m insurance benefit in H2 2021.Consumer Media: dmg media
Mixed revenue performance reflecting market conditions
£ million H1 2020 H1 2021 Change % Underlying %
Daily Mail / The Mail on Sunday 196 176 (10%) (10%)
Circulation 137 126 (8%) (8%)
Advertising 54 45 (16%) (16%)
Other 6 5 (16%) (16%)
MailOnline 79 85 +8% +9%
DailyMailTV 4 3 (6%) +0%
Mail Businesses 278 264 (5%) (5%)
Metro 41 12 (72%) (72%)
'i' 12 16 +34% (10%)
Newsprint & other 14 19 +35% (17%)
Total Revenue 345 311 (10%) (13%) ¹
> UK lockdowns affected circulation volumes and print advertising market
> Good performance from the Mail businesses despite lockdowns; Metro particularly challenged
Note: (1) Underlying revenue growth for the seven months to April 2021 was –10% (vs. –13% H1). © 2021 DMGT 17Consumer Media: dmg media
Operational progress in a difficult trading environment
Revenue and underlying growth Cash OI and margin Operating profit and margin
(2)% 14% 13%
(13)%
12% 11%
£345m £48m £44m
£311m £39m £34m
H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021
> Metro particularly challenged: Cash OI and operating profit growth excluding Metro¹
> Continued cost management; increasing organic investment (e.g. The Knowledge, Mail+)
> H2:
Inclusion of New Scientist (Mar’21); benefit of Daily Mail Mon-Fri cover price (70p → 80p, Mar’21)
Uncertain advertising market; continued cost management; organic investment in digital
© 2021 DMGT 18
Note: (1) Excluding both the adverse impact of Metro and the benefit from acquisitions, Consumer Media Cash OI and adjusted operating profit
increased in H1 2021 compared to H1 2020.Exceptional items and amortisation
Continuation of low level of exceptional costs
£ million H1 2020 H1 2021
Exceptional cash costs - continuing (4) (2)
Exceptional cash credit / (costs) - discontinued 11 (5)
Exceptional cash credit / (costs) 8 (6)
Impairment of intangible assets & goodwill (12) -
Amortisation, impairment of plant & other (6) (7)
Profit on sale of assets 179 241
Pre-tax exceptional credit 169 227
> Exceptional cash costs mainly relate to discontinued operations (Genscape provision)
> Profit on sale of assets includes £237m for the EdTech business, Hobsons (H1 2020 £134m, Energy Information)
Note: Figures include discontinued operations (Energy Information and EdTech) and JVs and associates © 2021 DMGT 19Net cash movement
450
400
350 138
Cash OI £66m
300
300
250 293 95
£m
18
6 45
200 55
20 199
150 H2
168 38
distribution
100
50
-
Opening Operating Depreciation Other Pensions Dividends Disposals Acquisitions, Closing pro IFRS 16 Closing
Capital
pro forma and forma net
profit expenditure operating Taxation investments lease balance sheet
net cash amortisation cash flow Interest¹ and other² cash liabilities net cash
31 Mar’21 31 Mar’21
> Other operating cash flow (-£45m): usual seasonal outflows (e.g. employee incentive payments)
> Operating cash conversion 39%³ (vs. 69% H1 2020); Cash OI 121% of adjusted operating profit
Notes: (1) Pensions £18m, Taxation £2m and Interest £0m © 2021 DMGT 20
(2) Acquisitions, investments and other includes £117m of acquisitions and investments and £22m revaluation impact, primarily from US$ denominated cash balances.
(3) Operating cash conversion % = operating cash flow / adjusted operating profitH1 2021 Disposals, acquisitions and investments
Disposals £300m
> EdTech (Hobsons): £294m March 2021
• FY 2020: revenue £85m; cash OI £10m; operating profit £6m
Acquisitions £77m
> New Scientist: £67m March 2021
• 2021 expectation: revenue >£20m; cash OI & operating profit c.£7m
> Printing plants £10m October 2020
Investments £39m
> Investment in Cazoo £34m October 2020: total investment to date £117m (£104m cash)
• March 2021 announcement of planned public listing: DMGT stake valued at c.$1.35 billion
© 2021 DMGT 21Cazoo transaction and listing structure
Business combination with AJAX I: c.$8.1bn equity value
> AJAX I is a SPAC already listed on NYSE; trading at c.$10.00 per share¹
> Transaction includes up to $805m AJAX cash and fully-committed PIPE of $800m at $10.00 per share
> Legal process expected to complete in Q4 FY 2021; ‘AJAX’ ticker to become ‘CZOO’
Implications for DMGT
> DMGT’s current holding of Cazoo would be valued at c.$1.35bn at $10.00 per share
> Cash on completion will depend on multiple factors: likely to be approximately $90m
> DMGT’s remaining stake likely to be c.16% on a fully diluted basis
> Lock-up restrictions apply for 5 to 6 months after closing: to Q2 FY 2022
> No tax payable on gain at $1.35bn valuation (substantial shareholding exemption)
DMGT: accounting for Cazoo
> Cazoo is an investment, not an associate:
• Cazoo’s losses do not impact DMGT’s income statement
• Carried at fair value on DMGT’s balance sheet
Note: (1) AJAX closing price of $9.91 on 26 May 2021. © 2021 DMGT 22Summary
H1 performance as expected given market conditions
Expect differing degrees of Covid-19 impact on our businesses in H2¹
Continued, disciplined organic investment through the cycle
Businesses remain flexible and agile as market conditions evolve
Net cash provides significant financial flexibility to support our strategy
© 2021 DMGT 23
Note: (1) A summary of the comments about the outlook is provided on slide 35.RMS business update
Karen White, CEO
© 2021 DMGTBusiness and
strategy update
Paul Zwillenberg, CEO
© 2021 DMGTBusiness update
B2B
B2B Information Services
> Insurance Risk:
• Wide range of customers deploying to Risk Intelligence platform
• Applications performing well: good use cases; improved price performance
• Accelerating appetite for risk insights; large new market opportunities
> Property Information:
• Investment in product and technology has positioned Trepp well to accelerate
long-term revenue growth and margin expansion
• Landmark investing to drive greater speed and transparency of UK property
transaction process; expanding data sets; increasing revenue and profit per
transaction
B2B Events and Exhibitions
> H2 2021: managing the cost base for major events to be regional rather than global
> Longer-term: encouraging bookings; we expect to launch new events
> Prepared for various end market scenarios
© 2021 DMGT 26Business update
Consumer Media: dmg media
Investing for the long-term
> Taking advantage of scale
> Improving quality of revenues through digital opportunities:
• Subscriptions: The Knowledge; The Digital Edition; Mail+
• Content-led performance marketing
> Acquisition of printing plants to provide operational flexibility
Disciplined approach to acquisitions: compelling valuations
New Scientist acquisition
> Strong brand and great editorial content
> Strong subscription base
> Well-positioned for growth with significant digital opportunity
> DMGT’s opportunistic and value-focused approach to portfolio management
© 2021 DMGT 27DMGT’s strategy continues to work
Long-term approach: disciplined portfolio management to drive value and growth
> Balanced portfolio by role, sector, business model: spanning B2B and Consumer Media
> Exciting growth opportunities: focus on excellent operational execution to deliver value
> Long-term thinking embedded in DMGT’s culture¹
Execution of strategy enabled major developments during H1 2021
> Disposal of Hobsons at a high multiple
> Investment in Cazoo driving substantial value creation
> Acquisition of New Scientist to improve quality of Consumer Media revenue streams
> Organic investment supporting product development and expansion into new markets
Future strategy: more of the same
> Clear portfolio objectives: cash flow to fund DMGT’s financial commitments and organic investment
> Portfolio management: emphasis on compelling opportunities
> Occasional substantial value uplifts (e.g. Zoopla, Cazoo)
> DMGT central role: shaping the portfolio; selecting & supporting management teams; capital allocation
Note: (1) Some of the information from DMGT’s first Sustainability Report is shown on slide 51. The full report is available on www.dmgt.com. © 2021 DMGT 28Strategy in action: Hobsons case study
Significant restructuring and investment decisions
to optimise all potential outcomes
Strategy: portfolio focus and operational execution
> Business was underperforming in 2016: too thinly spread with lack of focus
> 2017: sold Hobsons’ Admissions and Solutions businesses (45% of revenues, >80% of
operating profit)
> Focused on businesses with most potential: Naviance, Intersect and Starfish
• FY 2017 revenues $85m; cash OI c.$(6)m outflow
• Total acquisition cost of $46m (Naviance 2007; Intersect organic; Starfish 2015)
> New management team focused on delivering revenue growth and improving
operational execution
> Invested organically in technology and product development to drive long-term growth
Clear strategy in place but worth more to acquirer
> Sold for c.$410m in March 2021
© 2021 DMGT 29Strategy in action: Cazoo case study
Backing entrepreneurial ‘Businesses for the future’
A disruptive consumer proposition with entrepreneurial leadership
DMGT understood the opportunity
> Compelling market dynamics
> Manageable risk with substantial potential upside
Our strategy enabled the investment
> Financial flexibility to invest in multiple rounds: first in November 2018
> Led investment round in Apr’20 (1st lockdown)
> Total investment of £117m: £104m cash; £13m (11%) media advertising credits
> Proposed transaction would value our stake at c.$1.35 billion
Good example of investing to generate capital returns
© 2021 DMGT 30Capital allocation
Our priorities
Organic investment is our priority
> B2B focus: deep data and analytics; technology platforms that are fit for the future
> Consumer Media focus: content-driven subscription and digital businesses
Dividend: primary mechanism for returning capital to shareholders
> Policy: real dividend per share growth; targeting one-third payout of adjusted EPS medium term
Balanced and flexible approach to additional uses of capital
> Capacity for meaningful acquisitions: we will remain patient and disciplined
> M&A focus: B2B – risk insights; Consumer Media – subscriptions and digital opportunities
> Acquisition valuations currently more compelling in Consumer Media
> Acquisitions balanced against additional shareholder returns
> Long-term approach to capital management: maintaining financial flexibility is a priority
© 2021 DMGT 31Summary
H1 performance as expected given market conditions
Our strategy is delivering and creating value
Retain long-term investment perspective
Organic investment through the cycle
Satisfying
the need
to know © 2021 DMGT 32Questions
Daily Mail and General Trust plc
To ask a question, please dial:
UK: +44-(0)330-336-9434
US: +1-323-994-2093
Confirmation code: 7516756
© 2021 DMGT 33Appendix
© 2021 DMGTOutlook
No formal guidance
> Covid-19 uncertainty: UK Property Information, Events and Exhibitions and Consumer Media
Group performance dependent on individual businesses
> Insurance Risk¹: modest revenue growth in FY 2021 before a gradual acceleration
> Property Information¹: UK property market likely to remain volatile with stamp duty changes;
US positioned for revenue growth; continued investment
> Events and Exhibitions¹: reduced total revenues from major events; uncertain event schedule;
expect small FY 2021 profit; extreme scenario c.£15m loss
> Consumer Media¹: weak advertising market; circulation volumes dependent on Covid-19
restrictions; addition of New Scientist; benefit of Mon-Fri Daily Mail cover price increase to
80p on 29 Mar’21; continued management of newspaper cost base; organic investment in
digital opportunities
> JVs and associates: cumulative net losses expected for the Full Year
> Net finance costs: year-on-year increase due to reduced income (lower variable interest rates)
> Tax: adjusted rate will depend on Covid-19 impact, including on the geographical mix of profits;
currently expected to be around 20%
Notes: (1) Please see slides 11, 14, 16 and 18 for more detail . © 2021 DMGT 35Diverse revenue streams
Revenues by type and underlying growth rates
Transactions & Other +12%
H1 ‘20 (6)% / H2 ‘20 (20)%
20%
Subscriptions² +6%
31% H1 ‘20 +4% / H2 ‘20 +3%
Print Advertising (40)% 10%
H1 ‘20 (4)% / H2 ‘20 (61)%
15%
Digital Advertising +9% 23%
H1 ‘20 +14% / H2 ‘20 (6)% 1% Circulation² (11)%
H1 ‘20 (5)% / H2 ‘20 (9)%
Events (92)%
H1 ‘20 +1% / H2 ‘20 (88)%
Notes: (1) Percentages in the slices represent share of revenues in H1 2021. The +X% and (X)% percentages represent underlying growth rates during the six months. © 2021 DMGT 36
(2) Subscriptions include subscriptions for Consumer Media products and Circulation excludes subscriptions. FY 2020 growth rates vs. FY 2019 treated Consumer Media
subscription revenues as circulation in both years.Revenue dynamics
Strong underlying subscription growth
£ million % of total H1 2020 H1 2021 Change % Underlying %
Advertising - print 10% 97 59 (39%) (40%)
(18%)
- digital 15% 82 89 +8% +9%
Circulation 22% 145 130 (10%) (11%)
Subscriptions 31% 189 181 (4%) +6%
Events 1% 77 4 (95%) (92%)
Transactions & other 20% 101 118 +17% +12%
Total Revenue 100% 690 580 (16%) (12%)
Note: Share of revenues shown to nearest whole percentage. © 2021 DMGT 37Category analysis
Revenues by type: H1 2021
Insurance Property Events and Consumer
£ million EdTech Total
Risk Information Exhibitions Media
Advertising - print - - - - 59 59
- digital - - - - 89 89
Circulation - - - - 130 130
Subscriptions 112 28 31 - 9 181
Events - - - 4 - 4
Transactions & other 5 87 2 - 24 118
117 115 34 4 311 580
© 2021 DMGT 38Geographical diversity
Revenues by destination: H1 2021
Rest of World
11%
Rest of World revenues, 11%:
• 8% Rest of Europe
• 3% Asia, Middle East, Caribbean,
Africa and Latin America
North America 29%
60% UK
© 2021 DMGT 39Geographical analysis
Revenues by destination: H1 2021
Insurance Property Events and Consumer
£ million EdTech Total
Risk Information Exhibitions Media
UK 23 87 - - 240 349
North America 66 26 33 - 42 168
Rest of World 29 2 - 3 29 63
Total Revenue 117 115 34 4 311 580
Note: This table shows the revenues based on the location of the customers receiving the goods or services. © 2021 DMGT 40Underlying analysis
Revenues
H1 2020 H1 2021
£ million % Actual M&A Exchange Other Underlying Actual M&A Other Underlying
B2B
Insurance Risk +0% 123 - (6) - 117 117 - - 117
Property Information +20% 96 1 (1) - 96 115 - - 115
EdTech N/A 42 (42) - - - 34 (34) - -
Energy Information N/A 7 (7) - - - - - - -
B2B Information Services +9% 268 (48) (8) - 212 266 (34) - 232
B2B Events & Exhibitions (92%) 77 4 (4) (28) 49 4 - - 4
Consumer Media (13%) 345 26 (1) (13) 357 311 10 (11) 310
DMGT Revenue (12%) 690 (18) (13) (40) 619 580 (24) (11) 545
Notes: (1) Underlying results are adjusted for constant exchange rates, the exclusion of disposals and business closures, the inclusion of the year-on-year organic growth from acquisitions and
for the consistent timing of revenue recognition. For events, the comparisons are between events scheduled in the six-month period and the same events held, or that were scheduled to
be held, the previous time. Underlying growth rates include the negative impact of events held in H1 2020 that are usually annual but which are not expected to be held in FY 2021. For
Consumer Media, underlying revenues exclude low margin newsprint resale activities. For a full explanation of underlying growth rates and adjustments see slide 57.
(2) Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.
© 2021 DMGT 41Underlying analysis
Cash operating income
H1 2020 H1 2021
£ million % Actual M&A Exchange Other Underlying Actual M&A Other Underlying
Insurance Risk +4% 22 - (2) - 20 20 - - 20
Property Information +83% 14 - - - 13 24 - - 24
EdTech N/A 4 (4) - - - 2 (2) - -
Energy Information N/A 1 (1) - - - - - - -
B2B Information Services +36% 40 (5) (2) - 33 47 (2) - 45
B2B Events & Exhibitions (256%) 5 1 (1) (2) 3 - - (5) (5)
Consumer Media (21%) 48 4 (1) - 51 39 2 - 40
Corporate costs +12% (18) - - - (17) (20) - - (20)
Cash operating income (13%) 75 (1) (3) (2) 69 66 (1) (5) 60
Notes: (1) For an explanation of underlying growth rates and adjustments see slide 57.
(2) Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.
© 2021 DMGT 42Underlying analysis
Adjusted operating profit and PBT
H1 2020 H1 2021
£ million % Actual M&A Exchange Other Underlying Actual M&A Other Underlying
Insurance Risk +7% 19 - (2) - 17 18 - - 18
Property Information +89% 12 - - - 12 22 - - 22
EdTech N/A 2 (2) - - - 1 (1) - -
Energy Information N/A 2 (2) - - - - - - -
B2B Information Services +40% 35 (4) (2) - 29 41 (1) - 40
B2B Events & Exhibitions (242%) 5 1 (1) (2) 4 (1) - (5) (5)
Consumer Media (25%) 44 4 - - 48 34 2 - 35
Corporate costs +10% (18) - - - (18) (20) - - (20)
Operating profit (19%) 65 1 (3) (2) 62 55 1 (5) 50
Joint ventures and associates (81%) (7) - - - (7) (1) - - (1)
Net finance charges +179% (2) - - - (2) (7) - - (7)
Adjusted profit before tax (20%) 56 1 (3) (2) 53 47 1 (5) 42
Notes: (1) For an explanation of underlying growth rates and adjustments see slide 57.
(2) Amounts are stated rounded to the nearest £1m, consequently totals may not equal the sum of the component integers.
© 2021 DMGT 43Joint ventures and Associates
DMGT’s share of adjusted operating profits and losses
£ million H1 2020 H1 2021 Change % Underlying %
Total losses from JVs and associates (7) (1) (81%) (81%)
> JVs & Associates: reduced losses; good progress by Yopa
> Cazoo is an investment and is not included in joint ventures and associates
© 2021 DMGT 44Net finance costs
£ million H1 2020 H1 2021 Change % Underlying %
Net finance costs 8 9 +1% +1%
Investment revenue (6) (2) (70%) (70%)
Total net finance costs 2 7 +179% +179%
Items excluded from adjusted results:
IAS19(Revised) finance credit (2) (1) (43%) N/A
> Reduced investment revenue due to lower variable interest rates
> Gross finance costs largely dependent on fixed gross debt and fixed interest rates: stable
© 2021 DMGT 45Adjusting items
Reconciliation from statutory PBT to adjusted PBT
£ million H1 2020 H1 2021
Statutory Profit Before Tax - continuing operations 77 42
Add: statutory PBT - discontinued operations 16 (4)
Add: Profit on disposal of discontinued operations¹ 134 237
Statutory PBT including discontinued operations 227 275
Reverse: Pre-tax exceptional credit (slide 19) ¹ (169) (227)
Remove: IAS19(Revised) credit (slide 45) (2) (1)
Adjusted Profit Before Tax 56 47
Note: (1) The £241m (H1 2021) and £179m (H1 2020) profit on disposal shown on slide 19 includes the £237m (H1 2021) and £134m (H1 2020) profit on
disposal of discontinued operations, which is excluded from statutory PBT as well as from adjusted PBT (since statutory results exclude discontinued
operations). The profit on disposal of discontinued operations is effectively added in and then reversed back out in this reconciliation.
© 2021 DMGT 46No major shows in FY 2021 until September 2021; no ADIPEC exhibition in FY 2021
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Major event H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
ADIPEC A A A A PA
Big 5 Dubai A A A A PB A
C
Gastech 18M 18M A P A
FY17 FY18 FY19 FY20
Revenues £m £m £m £m
Total for 3 largest events¹ 70 68 74 56
Other events 47 49 45 23
Total revenues 117 118 119 79
Key
PA > ADIPEC: postponed from Nov’20 to Nov’21
A Annual PB > Big 5 Dubai: postponed from Nov’20 to Sep’21
18M c.18 Months PC > Gastech: Singapore event postponed from Sep’20 to Sep’21
Note: (1) FY 2020 revenues of £56m from two events (ADIPEC and Big 5 Dubai) as Gastech not held in FY 2020 because of Covid-19 pandemic. © 2021 DMGT 47
(2) Events are listed in order of size, based on revenues. ADIPEC generates the most revenue, followed by Big 5 Dubai, followed by Gastech.Balance Sheet
£ million 31 Mar'20 31 Mar'21 Movement
Goodwill & Intangible assets 355 330 (26)
Investments in JVs and associates 64 51 (13)
Other non-current assets 357 1,087 730
Businesses held for sale 4 8 4
Other current assets (excl. cash) 291 272 (20)
Net cash 206 199 (8)
Pension surplus 352 167 (186)
Other liabilities (531) (357) 174
Net assets 1,099 1,754 656
Equity attributable to owners of DMGT 1,099 1,754 655
Non-controlling interests - 1 1
Shareholders' equity 1,099 1,754 656
Note: The 31 March 2021 and 31 March 2020 balance sheets are stated before the pro forma adjustments in respect of the £95m (Mar’21) and £74m
(Mar’20) IFRS 16 lease liabilities. The balance sheet is also stated before the pro forma reclassifications to pension surplus of cash held in escrow for
the benefit of the pension schemes (£121m Mar’21, included in ‘other non-current assets’ above) or subsequently paid into escrow (£117m Mar’20,
included in ‘net cash’ above).
© 2021 DMGT 48Net cash
Significant financial flexibility
Bonds Coupon £m
April 2021 10.0% (1)
June 2027 6.375% (201)
(202)
Lease liabilities recognised per IFRS 16 (95)
Other debt, collateral and derivatives (2)
Cash and short-term deposits, net of overdrafts 496
Net cash as at 31 March 2021 199
Exclude lease liabilities recognised per IFRS 16 95
Pro forma net cash as at 31 March 2021 293
Bank facilities Facility Drawings Undrawn
Expiring March 2023 362 - 362
> Gross cash and facilities of >£850m; cash excludes £121m held in escrow for the benefit of the pension schemes
> Bonds not due until 2027
© 2021 DMGT 49Gross cash and facilities >£850m
900
23
800 859
74
700 362
600
2
£m
500 > £201m bonds not due until 2027 (6.375% coupon)
496
400 201 > £362m committed facilities to March 2023
300
293
200
100
-
Pro forma Bonds Other debt Gross Committed Total
net cash due 2027 and cash² undrawn gross cash
collateral¹ bank and bank Notes: (1) Other debt and collateral includes £1m April 2021 bonds and £9m of
facilities facilities derivatives and other debt largely offset by £8m collateral
(2) Gross cash includes cash, cash equivalents and short-term deposits,
net of overdrafts. It excludes £121m held in escrow for the benefit of
the pension schemes.
© 2021 DMGT 50Sustainability
> DMGT’s first
Sustainability Report
published in March 2021
> Full report and more
information on ESG
available in the
Sustainability section of
www.dmgt.com
© 2021 DMGT 51Defined benefit pension schemes
Triennial actuarial valuation as at 31 Mar’19: actuarial deficit
£121m held in escrow¹: excluded from DMGT’s net cash
Agreed funding plan
> £14m paid into schemes in H1 2021; £11m p.a. from FY 2022 to FY 2025 inclusive
> In certain circumstances, funding payments of up to 20% of any future share buy-backs
> Contributions cease once actuary agrees schemes not in deficit
> £121m¹ paid into escrow in H1 2021 and £7m p.a. from FY 2022 to FY 2025 inclusive
> Some escrow funds may be paid into schemes from FY 2021 to FY 2027, dependent on actuarial deficit
> FY 2027: some or all remaining escrow funds to be paid into the schemes; balance returned to DMGT
Pro forma accounting surplus of £287m² as at 31 Mar’21 (£240m as at 30 Sep’20)
> IAS 19 (Revised); assumptions differ to those used for actuarial valuation
> H1 2021 surplus increase: reduced liabilities partly offset by reduced asset valuations
Notes: (1) The £121m was paid into escrow in H1 2021 and included the £117m cash ring-fenced on the balance sheet as at 30 September 2020 (following the Euromoney distribution in © 2021 DMGT 52
April 2019).
(2) The pro forma surplus includes £121m (£117m 30 Sep’20) that is being held in escrow and which is not included in DMGT’s cash balance.FX Rate
The weaker US dollar (H1 2021 vs. H1 2020)
US $ / GBP £
1.40
1.38
1.36 H1 2021: $1.35
1.34
1.32
1.30
1.28 H2 2020: $1.27
Weaker US dollar in H1 2021
H1 2020: $1.28
1.26 > c.£13m revenue impact
1.24 > c.£3m operating profit impact
1.22
1.20
© 2021 DMGT 53
Note: The FX impact is based on restating H1 2020 results using the H1 2021 exchange rates.Real dividend growth continues
30 year CAGR: 8%
24.1p
24
22
20
18
16
14
12
10
8
6
5.3p
4 2.8p
2
0
1990 2020
Dividend Inflation
FY 2020 Full Year dividend of 24.1 pence
© 2021 DMGT 54Reporting calendar
Reporting dates for FY 2021
Release or event Provisional Date
Nine month trading update 22 July 2021
Full year results 18 November 2021
© 2021 DMGT 55Mar'91
Dec'91
Sep'92
Jun'93
Mar'94
Dec'94
Sep'95
Jun'96
Mar'97
Dec'97
Sep'98
Jun'99
Mar'00
Dec'00
Share price performance
Sep'01
Jun'02
Mar'03
Dec'03
Sep'04
Jun'05
The 30 year view – excluding dividend reinvestment
Mar'06
Dec'06
Sep'07
Jun'08
Mar'09
Dec'09
Sep'10
Jun'11
Mar'12
Dec'12
Sep'13
Jun'14
Mar'15
Dec'15
Sep'16
Jun'17
Mar'18
Dec'18
DMGT 'A' Shares
FTSE 'All Share'
© 2021 DMGT
Sep'19
Jun'20
Mar'21
56Notes
Adjusted results Underlying growth rates
Unless otherwise stated, all profit and profit margin figures Underlying growth rates are on a like-for-like basis.
refer to adjusted results and not statutory results. The Board Underlying revenues, cash operating income and operating
and management team use adjusted results, rather than profits are adjusted for constant exchange rates, the
statutory results, to give greater insight to the financial exclusion of disposals and business closures, the inclusion
performance of the Group and the way that it is managed. of the year-on-year organic growth from acquisitions and
Similarly, adjusted results are used in setting management for the consistent timing of revenue recognition. For
remuneration. Adjusted results are stated before Consumer Media, underlying revenues exclude low margin
exceptional items, other gains and losses, impairment of newsprint resale activities. For events, the comparisons are
goodwill and intangible assets, amortisation of intangible between events scheduled to be held in the six-month
assets arising on business combinations, pension finance period and the same events held, or that were scheduled to
credits and fair value adjustments. be held, the previous time. Consequently, underlying
growth rates include all costs for events that were originally
scheduled in the six months to March 2021 and that were
Percentages
cancelled or postponed. Similarly, the prior year
Percentages are calculated on actual numbers to one comparatives include all revenues and costs for the
decimal place. previously scheduled occurrence of the same event,
whether it occurred or not. Underlying growth rates
The effect of roundings include the negative impact of events held in H1 2020 that
Amounts are stated rounded to the nearest million pounds, are usually annual but which are not expected to be held in
consequently totals may not equal the sum of the FY 2021. Due to cancellations or postponements, the
component integers. reported results in both periods include costs recognised in
advance of the scheduled occurrence of an event; but for
the calculation of underlying growth rates, the costs are
recognised when the event was scheduled to be held.
© 2021 DMGT 57Additional information in respect of Cazoo and
AJAX I and where to find it
This communication relates to a proposed business combination among Cazoo Holdings Limited (“Cazoo”), AJAX I and Capri Listco
(“Listco”). In connection with the proposed business combination, Listco filed a registration statement on Form F-4 that includes a
proxy statement of AJAX I in connection with AJAX I’s solicitation of proxies for the vote by AJAX I’s shareholders with respect to the
proposed business combination and a prospectus of Listco, which has not yet become effective. The proxy statement/prospectus will
be sent to all AJAX I shareholders and Listco and AJAX I will also file other documents regarding the proposed business combination
with the SEC. This communication does not contain all the information that should be considered concerning the proposed business
combination and is not intended to form the basis of any investment decision or any other decision in respect of the business
combination. Before making any voting or investment decision, investors and security holders are urged to read the registration
statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with
the proposed business combination as they become available because they will contain important information about the proposed
transaction.
Investors and security holders will be able to obtain free copies of the registration statement, proxy statement/prospectus and all other
relevant documents filed or that will be filed with the SEC by AJAX I and Listco through the website maintained by the SEC at
www.sec.gov. In addition, the documents filed by AJAX I may be obtained free of charge from AJAX I’s website at https://ajaxcap.com
or by written request to AJAX I at 667 Madison Avenue, New York, NY 10065, United States of America and documents filed by DMGT
may be obtained free of charge by written request to DMGT at Northcliffe House, 2 Derry Street, London W8 5TT.
© 2021 DMGT 58Thank you
Daily Mail and General Trust plc
Results Presentation
Half year ended 31 March 2021
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