Post on 01-Jun-2018
8/9/2019 DMGT Presentation 17.9.14
1/20
Thursday18 SeptemberGrowth through Digital Innovation
Martin Morgan, Chief ExecutiveStephen Daintith, Finance Director
8/9/2019 DMGT Presentation 17.9.14
2/20
8/9/2019 DMGT Presentation 17.9.14
3/20
2014 DMGT | 2
Balanced Capital AllocationStephen Daintith
RMSHemant Shah & Matthew Grant
EuromoneyChristopher Fordham, Ben Jones, Bashar AL-Rehany & Simon McLoughlin
MailOnlineMartin Clarke, Jon Steinberg, Mel Scott & Richard Caccappolo
Drinks Reception
TODAYS AGENDA
8/9/2019 DMGT Presentation 17.9.14
4/20
8/9/2019 DMGT Presentation 17.9.14
5/20
2014 DMGT | 4
STEPHEN DAINTITHFINANCE DIRECTOR
8/9/2019 DMGT Presentation 17.9.14
6/20
2014 DMGT | 5
DMGT
Capital Allocation
RMS
8/9/2019 DMGT Presentation 17.9.14
7/20
2014 DMGT | 6
BALANCED CAPITAL ALLOCATION
Strong balance sheet flexible capital allocation to create shareholder value
Invest in organic growth
Targeted acquisitions
Real dividend growth
Pension fund contributions
Share buy backs
Bond buy backs
8/9/2019 DMGT Presentation 17.9.14
8/20
2014 DMGT | 7
TARGET 2.0X NET DEBT:EBITDA RATIO
Operating cash flow
Zoopla proceeds of 179m
Evenbase proceeds of 150m
Acquisitions during FY 2014 of c.175m
Share buy backs of 31m (completion of original 100m programme)
Bond buy back premium of 24m
At 2.0x EBITDA, >300m available for Capital Allocation
8/9/2019 DMGT Presentation 17.9.14
9/20
2014 DMGT | 8
Newsector
INVESTMENT PREFERENCES
AdjacentBolt-onOrganic
8/9/2019 DMGT Presentation 17.9.14
10/20
8/9/2019 DMGT Presentation 17.9.14
11/20
2014 DMGT | 10
DIVIDEND GROWTH CONTINUES
FY14 Interim dividend of 6.2 pence up 5.1%
20 year CAGR: 9%
0
2
4
6
8
10
12
14
16
18
20
1993 2013
Dividend Inflation
3.7p6.6p
19.2p
P e n c e
8/9/2019 DMGT Presentation 17.9.14
12/20
8/9/2019 DMGT Presentation 17.9.14
13/20
2014 DMGT | 12
SHARE BUY BACK
Original 100m share buy back programmeAnnounced November 2012Completed September 2014Average price of 7.09 per share
New 100m share buy back programmeOn market
M&A remains the priority
8/9/2019 DMGT Presentation 17.9.14
14/20
2014 DMGT | 13
NET DEBT
2.4
2.92.7
3.5
3.1 2.8
2.3 2.22.0
2.3
1.6
1.9
1.5
2.0
0
200
400
600
800
1,000
1,200
Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14
m
Net debt:EBITDA ratio comfortably below 2.0x
8/9/2019 DMGT Presentation 17.9.14
15/20
2014 DMGT | 14
NET DEBT POSITION
480m of bank facilities expiring March 2019
Debt management flexibility
Bonds Coupon m
December 2018 5.75% 263April 2021 10.0% 109
June 2027 6.375% 196
Total Bond Debt as at 31 Mar 2014 568
8/9/2019 DMGT Presentation 17.9.14
16/20
2014 DMGT | 15
RMS
8/9/2019 DMGT Presentation 17.9.14
17/20
2014 DMGT | 16
RMS(ONE) PRODUCT
Balance sheet carrying value of c.85m as at Sep14(c.35m capex in FY 2014)
Material impairment of the c.85m in FY2014
Materially lower capitalisation in FY2015 (vs.35m)
Balance sheet asset
8/9/2019 DMGT Presentation 17.9.14
18/20
2014 DMGT | 17
RMS(ONE) OUTLOOK KEY DRIVERS
Significant revenues and amortisation costscommence in FY 2016
Reduced capitalisation and increased datacentre costs in FY 2015
RMSs total operating margin likely to bec.10-15% in FY 2015 vs. c.25% in FY 2014
8/9/2019 DMGT Presentation 17.9.14
19/20
2014 DMGT | 18
SUMMARY
Strong balance sheet
Balanced and flexible capital allocation
Plenty of opportunity for organic investment and M&A
RMS(one) setbacks but confident of long-term prospects
Diverse portfolio with good long-term growth potential
8/9/2019 DMGT Presentation 17.9.14
20/20
THANK YOUDMGTNorthcliffe House2 Derry Street, London W8 5TT UKT +44 (0)20 7938 6000F +44 (0)20 7938 4626www.dmgt.com