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UBM plc (UBM)

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Tuesday 22 October, 2013

UBM plc

Interim Management Statement


                                                                22 October 2013

                    Solid Q3: Profit on track for full year                    

   Interim Management Statement for the nine months ended 30 September 2013    

Highlights

 * Revenue from continuing operations up 0.6% to £580.5m (YTD 2012: £577.2m)

 * Underlying revenue growth of 2.3%; 6.5% growth in the third quarter driven by
   10.8% Q3 growth in Events

 * Adjusted operating profit was £117.9m in line with expectations (down 4.3% from
   £123.2m YTD 2012 - though up 7.8% in Q3)

 * Adjusted operating profit margin was 20.3% (YTD 2012: 21.3%)

 * Marketing Services restructuring on track; substantially all of the activities
   identified as discontinued at the Interim results now disposed

 * Leverage reduced to 2.3x Net Debt/LTM EBITDA (30 June 2013: 2.6x)

David Levin, Chief Executive Officer, UBM said:

"Our performance in Q3 continued the positive momentum we have seen develop
through the year. Large events, notably our shows in China, have performed
well, and we continue to expect good growth in Q4 boosted by strong biennial
revenues.  We have seen softer conditions in certain markets, mainly in Brazil
and India, and have slightly reduced the number of new launch events originally
scheduled for Q4.  Activity at PR Newswire has picked up in September and
October after a slower summer period. We continue to make good progress in
restructuring Marketing Services.
 
As a result, we now expect full year underlying revenue growth to be at or
slightly below the bottom of our guidance range of 3%-5%, but our adjusted full
year operating margin to be at the upper end of the 22-23% range. We expect
fully diluted adjusted EPS from continuing operations to be approximately
53-54p."

          Unaudited results for the nine months ended 30 September(1)                
                                                                                     
Revenue                                               2013   2012 Change Underlying  
                                                                                     
(continuing operations)                                 £m     £m      %          %  
                                                                                     
Events                                               331.3  322.6    2.7        4.3  
                                                                                     
PR Newswire                                          152.2  147.2    3.4        1.4  
                                                                                     
Marketing Services - Online & Print                   97.0  107.4   -9.7       -2.7  
                                                                                     
Total Revenue                                        580.5  577.2    0.6        2.3  
                                                                                     
                                                                                     
                                                                                     
                                                                           Margin    
                                                                                     
Adjusted Operating Profit (continuing operations)     2013   2012 Change 2013  2012  
                                                                                     
                                                        £m     £m      %    %     %  
                                                                                     
Events                                                92.8  102.8   -9.7 28.0  31.9  
                                                                                     
PR Newswire                                           33.3   32.2    3.4 21.9  21.9  
                                                                                     
Marketing Services - Online & Print                    8.0    2.7  196.3  8.2   2.5  
                                                                                     
Corporate Operations                                (16.2) (14.5)  -11.7    -     -  
                                                                                     
Total Adjusted Operating Profit                      117.9  123.2   -4.3 20.3  21.3  

(1) Figures throughout reflect Continuing operations unless otherwise stated. The
2012 financial results have been restated to exclude the Delta businesses and
elements of UBM Tech and Built Environment businesses now disposed of


Events

 * YTD event revenues are up 2.7% to £331.3m (YTD 2012: £322.6m); underlying
   growth was 4.3%

 * Q3 underlying events revenue growth was 10.8% - up from 6.5% in Q2

 * YTD revenue from biennial events has totalled £9.5m, down from £17.2m YTD 2012

 * Five of our top 20 events ran in Q3 and these performed in line with our
   expectations: strong double digit growth in Children-Baby-Maternity-Expo and
   BlackHat USA was moderated by single digit growth at Concrete Brazil, September
   Hong Kong Jewellery Show and Furniture China

 * Growth in revenues from a number of mid-sized and smaller events was slower
   than anticipated as we are seeing softer market conditions in a number of
   markets, notably Brazil and India

 * Adjusted operating margin of 28.0% (YTD 2012: 31.9%) reflects the poor Q1 in
   the UK Built Environment, the lower biennial contribution thus far in the year
   and decisions to invest in the organic growth and sustainability of our events
   portfolio

 * As at 30 September 2013, forward bookings for our 2012 Top 20 annual events are
   up 8.5% on a constant currency basis compared to last year

PR Newswire

 * PR Newswire YTD revenues rose 3.4% to £152.2m (YTD 2012: £147.2m); underlying
   growth for the nine months was 1.4%

 * Q3 underlying revenue growth was flat principally reflecting softness in US
   Vintage where businesses have now fully adopted XBRL and we saw lower revenue
   against tougher comparatives 

 * US Distribution and US Other revenue growth was softer than anticipated in July
   and August, reflecting press release distribution market conditions; volume has
   picked up somewhat in September and October.  Europe, LatAm and Canada showed
   improved revenue growth in the quarter 

 * PR Newswire margin remains on track, with YTD adjusted operating margin of
   21.9% (YTD 2012: 21.9%)
 
Marketing Services - Online & Print

 * The restructuring of the Marketing Services segment has continued to progress
   well and we expect to exit the year with Marketing Services activities closely
   related to our events; we continue to target a 10% margin in 2014

 * Marketing Services - Online & Print revenues YTD fell 9.7% to £97.0m (YTD 2012:
   £107.4m), reflecting proactive decisions to discontinue certain unprofitable
   products, coupled with more general print declines.  Underlying revenue was
   down 2.7%

 * Online revenues were down 2.9% to £70.7m (YTD 2012: £72.8m).  Underlying
   revenue declined by 1.7%

 * Print revenues were down by 24.0% to £26.3m (YTD 2012: £34.6m).  Underlying
   revenue declined by 5.5%

 * Combined YTD adjusted operating margin reached 8.2% (YTD 2012: 2.5%) as we
   discontinued less profitable activities

Portfolio changes

 * Since the Interim results we have completed or agreed the disposals of Channel,
   Property Week and TTG for combined cash proceeds of approximately £8.6m. UBM
   has retained a 30% minority equity interest in the Channel business. These
   disposals represent substantially all of the activities identified as
   discontinued at the Interim results

 * Total exceptional reorganisation and restructuring costs for the full year are
   expected to be around £15m

 * During the quarter we spent £2.8m acquiring a further 15% stake in UBM
   Rotaforte (Jewellery) in Turkey, a starch event in Shanghai (Food Ingredients)
   and the remaining 35% share of Greenbuild Asia in Malaysia (Built
   Environment).  We continue to develop our pipeline of potential bolt-on
   acquisitions

Debt

 * Following seasonally strong cash flow in the third quarter and some disposal
   proceeds, consolidated net debt stood at £426.3m as at 30 September 2013 - down
   from £467.3m at 30 June 2013

 * 2.3x LTM EBITDA from continuing operations

UBM CEO Succession

 * On 16th September David Levin announced that he will step down as CEO by 31
   July 2014

 * The Nomination Committee of the Board has appointed an executive recruitment
   firm and has initiated a search for his successor

Foreign exchange rates

 * As set out in the table below, overall FX rate movements - mainly in the US$
   and € - have benefited YTD results, increasing reported revenue growth over the
   nine months compared to 2012 by 1.8%. This includes a partial offset  by
   adverse movements in the Brazilian Real and Indian Rupee in the third quarter

 * Average FX rates for the nine months year to date 2013 and the equivalent
   period for 2012:

Average rate for period  YTD 2013  YTD 2012  Change
                                                 
£/$                      1.54      1.58      -2.4% 
                                                
£/€                      1.17      1.23      -4.9% 
                                                

Average 2012 FX rates were as follow:

Average rate for period  Q4 2012  FY 2012
                                       
£/$                      1.60     1.5872 
                                       
£/€                      1.23     1.2316 
                                                   

                                   - Ends -                                    

Conference Call - 9am

A conference call will be held to give an overview of the trading performance
of this IMS and to host a short Question and Answer session

Time:            9.00am

Dial-in:         0808 237 0030 (Toll-free) or 0203 139 4830

Passcode:        69311532#

Notice: Investor Site visit - 19th November - Food Ingredients, Frankfurt

UBM is organising an Investor visit to Food Ingredients Europe(our large
Biennial event) on 19th November at the Messe Venue in Frankfurt.  The visit is
expected to last a couple of hours from midday until mid-afternoon and will
include a presentation about our Global Food Ingredients franchise followed by
a tour of the exhibition.

There are a limited number of places so if you would like to attend please
email [email protected] to book a place.

This is to be the first in a series of UBM-hosted Investor visits.   We also
anticipate organising visits to:

IFSEC International               17-19th June 2014      Excel Centre, London

June Hong Kong Jewellery & Gem    19-22nd June 2014      Hong Kong Convention &
                                                         Exhibition Centre

Contacts

Media                                           Investors                              
                                                                                   
Peter Bancroft  Director of Communications      Kate Postans      Head of Investor Relations 
Email           [email protected]          Email             [email protected]    
DD telephone    +44 20 7921 5961                DD telephone      +44 20 7921 5023      
                                                                                   
                                                                                   
                                                                                   
Chris Barrie    Citigate Dewe Rogerson          Chantal Bradford  IR Manager      
Email           [email protected]   Email             [email protected]
DD telephone    +44 20 7282 2943                DD telephone      +44 20 7921 5943        
                                                                                   

Notes to Editors

About UBM plc

UBM plc is a global events-led marketing services and communications company. 
We help businesses do business, bringing the world's buyers and sellers
together at events and online, as well as producing and distributing news and
specialist content.  Our 5,500 staff in more than 30 countries are organised
into expert teams which serve commercial and professional communities, helping
them to do business and their markets to work effectively and efficiently.

For more information, go to www.ubm.com; follow us on Twitter at @UBM_plc to
get the latest UBM corporate news; follow @UBMNews for news from all UBM's
businesses; follow @UBM for a flavour of UBM from selected members of UBM's
Twitterati.

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