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 developthrough the year. Large events, notably our shows in China, have performedwell, and we continue to expect good growth in Q4 boosted by strong biennialrevenues. We have seen softer conditions in certain markets, mainly in Braziland India, and have slightly reduced the number of new launch events originallyscheduled for Q4. Activity at PR Newswire has picked up in September andOctober after a slower summer period. We continue to make good progress inrestructuring Marketing Services. As a result, we now expect full year underlying revenue growth to be at orslightly below the bottom of our guidance range of 3%-5%, but our adjusted fullyear operating margin to be at the upper end of the 22-23% range. We expectfully diluted adjusted EPS from continuing operations to be approximately53-54p." 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. The2012 financial results have been restated to exclude the Delta businesses andelements 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 performanceof 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 largeBiennial event) on 19th November at the Messe Venue in Frankfurt. The visit isexpected to last a couple of hours from midday until mid-afternoon and willinclude a presentation about our Global Food Ingredients franchise followed bya tour of the exhibition. There are a limited number of places so if you would like to attend pleaseemail [email protected] to book a place. This is to be the first in a series of UBM-hosted Investor visits. We alsoanticipate 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 RelationsEmail [email protected] Email [email protected] telephone +44 20 7921 5961 DD telephone +44 20 7921 5023 Chris Barrie Citigate Dewe Rogerson Chantal Bradford IR ManagerEmail [email protected] Email [email protected] 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 sellerstogether at events and online, as well as producing and distributing news andspecialist content. Our 5,500 staff in more than 30 countries are organisedinto expert teams which serve commercial and professional communities, helpingthem 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 toget the latest UBM corporate news; follow @UBMNews for news from all UBM'sbusinesses; follow @UBM for a flavour of UBM from selected members of UBM'sTwitterati.