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ITV set for con-nued growth a4er another strong year Full Year Results 2014
4 March 2015
Agenda
Q&A
Strategic Outlook Adam Crozier
Full Year Financial Results Ian Griffiths
2014 Highlights Adam Crozier
2
2014 Highlights Adam Crozier
4 March 2015
3 3
Significant further progress rebalancing ITV and driving new revenue streams
Revenue
External revenue £2,590m 8%
NAR £1,629m 6%
Non-‐NAR £1,327m 10%
Earnings
Broadcast & Online EBITA £568m 17%
ITV Studios EBITA £162m 22%
Group EBITA £730m 18%
Adjusted PBT £712m 23%
Adjusted EPS 13.8p 23%
Shareholder returns
Ordinary dividend 4.70p 34%
Special dividend 6.25p
4
• Another year of strong revenue growth in all parts of the business
• Fi4h consecu-ve year of double digit profit growth
• Further margin improvement • Delivering value from investment in quality
content ➔ 3 more content acquisi-ons in ITV Studios ➔ Online, Pay & Interac-ve now a material,
profitable and high margin part of ITV ➔ Launched our first new channels in almost
a decade – ITVBe and ITV Encore ➔ Improving share of viewing a key area of
focus • Clear opportuni-es for further investment while
increasing shareholder returns ➔ Commibed to at least 20% p.a. growth in
ordinary dividend for 3 years to 2016 ➔ Board proposes a £250m capital return to
shareholders
2014 Highlights:
Our renewed strategic prioriOes are focused on three key areas for growth
Maximise audience and revenue share from free-‐to-‐air
broadcast and VOD business
1 Grow internaOonal content business 2
Build a global pay and distribuOon
business 3
A lean ITV that can create world class content, executed across mulOple plaWorms and sold around the world
Over Ome as we conOnue to rebalance the business and grow new revenue streams, both organically and through acquisiOon, there will be an increasing emphasis on internaOonal content creaOon and distribuOon
5
Progress in 2014: • Economic recovery driving ad growth ➔ Con-nuing to deliver unrivalled commercial
audience reach ➔ Strongest outperformance of ad market in
5 years ➔ Share of broadcast up to 45.9%
• Launched new free-‐to-‐air channel ITVBe, providing more targeted female demographic for our adver-sers ➔ ITV2 reposi-oning as a younger channel
• Firmly focused on improving viewing performance ➔ ITV Family on screen share of viewing was
down 5% (following 4% growth in 2013) ➔ Online video on demand was up 26%
• Further improved quality and reach of ITV Player ➔ 16.5m app downloads, up 41% ➔ 8.0m registered users, up 129% ➔ Now on more than 20 plaeorms including
Windows 8 and Sky Go ➔ Suppor-ng connected TV plaeorms that
make ITV content prominent
1 Maximise audience and revenue share from free-‐to-‐air broadcast and VOD business
6
TV viewing Mins
219 242
221
0
50
100
150
200
250
2005 2010 2014
Long form video requests
150
273
406
496 577
726
2009 2010 2011 2012 2013 2014
Broadcast & Online EBITA (£m)
111
327 379 406
487
568
2009 2010 2011 2012 2013 2014
Consistently delivering mass audience reach
90%
90% 94
%
93% 96%
95% 100%
100%
99%
99%
100%
99%
2009 2010 2011 2012 2013 2014
Over 3m Over 5m
Grow internaOonal content business 2
7
ITV Studios Revenue (£m)
62%
67%
63%
62%
57%
53% 38
%
33%
37% 38
%
43% 47%
2009 2010 2011 2012 2013 2014
UK Interna-onal
Progress in 2014: • Strong ITV Studios revenue and profit growth in 2014 ➔ Revenue up 9% ➔ EBITA up 22%
• Already largest commercial produc-on company in the UK ➔ 60% ITV Network commissions now originate from ITV
Studios ➔ 13% growth in off-‐ITV produc-on revenue in the UK ➔ 5,700 hours of original content produced and delivered
• Inves-ng to build an interna-onal business ➔ 3 further acquisi-ons in 2014 ➔ Following purchase of Le4field, now the largest unscripted
independent produc-on company in the US • ITV Studios now a global player of scale ➔ Almost half of revenue generated outside the UK ➔ 24% growth in interna-onal produc-on revenue
• Inves-ng in growing our crea-ve produc-on pipeline ➔ Building a global scripted business ➔ Crea-ng formats that travel
+56%
554 612
712
857 933
597
ITV Studios EBITA (£m)
91 81 83 107
133 162
2009 2010 2011 2012 2013 2014
+78%
ITV brands
Scripted investments
AcquisiOons Associates
Scripted Reality
Factual & Comedy
Digital investments
ITV Nordics
mediacircus
Grow internaOonal content business… through a mixed economy model 2
8
Diverse content porWolio with global reach
Talent & POD
Progress in 2014: • Launched ITV Encore, our first pay only channel ➔ Profitable from launch
• Developed further new sources of pay revenue ➔ New 4 year deal with Sky ➔ Extended deal with Virgin for another year
• Exploring new models for content crea-on and distribu-on ➔ 3 investments in digital content: Believe, Indigenous and Zealot ➔ Invested in Cirkus, a subscrip-on VOD service for the Nordics ➔ Launched 12 short form channels on YouTube
• Leading European distributor of content ➔ Mr Selfridge, Lewis and Hell’s Kitchen US sold to over 150 countries ➔ 12 formats sold in 3 or more countries ➔ Acquired third party distribu-on rights to Poldark (UK), Schib’s
Creek (Canada) and Jordskob (Sweden)
Build global pay and distribuOon business 3
9
Online, Pay & InteracOve revenue
50 58
81
102
118
153
0
25
50
75
100
125
150
175
2009 2010 2011 2012 2013 2014
£m
(612)
(188)
45 206 164 41
2009 2010 2011 2012 2013 2014
1.8
6.4 7.9
9.1
11.2
13.8
2009 2010 2011 2012 2013 2014
202
408 462
513
620
730
2009 2010 2011 2012 2013 2014
850 829
922
1,036
1,211
1,327
2009 2010 2011 2012 2013 2014
1,879
2,064 2,140
2,196
2,389
2,590
2009 2010 2011 2012 2013 2014
108
321 398
457
581
712
2009 2010 2011 2012 2013 2014
(aher dividends of £678m)
Group External Revenues (£m) Non-‐NAR Revenues (£m)
EBITA before excepOonal items (£m)
Adjusted profit before tax (£m) Adjusted EPS (p) Net Cash/(Debt) (£m)
10
ExecuOon of our strategy is delivering a consistently strong performance
4 March 2015
Full Year Financial Results Ian Griffiths
11
Net AdverOsing Revenue (NAR)
Non-‐NAR
EBITA*
EPS**
Net cash
Ordinary dividend
External revenue £2,590m
£1,327m
13.8p
£41m
£1,629m
£730m
Up 8%, £201m
Up 10%, £116m
Up 23%, 2.6p
£123m net ouelow
Up 6%, £87m
Up 18%, £110m
Growth across the business
Con-nuing to rebalance
Double digit earnings growth
Strong cash genera-on
Ahead of the market
Improved margins
4.7p Up 34%, 1.2p Special dividend of 6.25p
Full Year 2014 Financial Highlights
12 * EBITA is before excep-onal items ** EPS is adjusted
• Both businesses delivering good revenue growth
• Strong adver-sing growth, well ahead of the market
• Con-nued growth in Online and Pay revenue
• Studios now a scaled interna-onal business
➔ Organic growth in interna-onal produc-on and distribu-on
➔ Acquisi-ons coming through as planned
➔ Currency movements hold back revenue growth
• Con-nuing to rebalance the business
Revenue – growth across all parts of the business
YOY Group Revenue Tracker
13
£m 2014 2013 Change
Broadcast & Online 2,023 1,896 7%
ITV Studios 933 857 9%
Total revenue 2,956 2,753 7%
Internal supply (366) (364) 1%
Total external revenue 2,590 2,389 8%
87 5
35 11
87
22
2,753
2,956
2,700
2,800
2,900
3,000
2013 NAR Broadcast Non-‐NAR
Online, Pay & Interac-ve
ITV Studios Organic
ITV Studios Acq'ns
FX impact 2014
£m
• Strong conversion of revenue growth to increased profit
• Both businesses deliver strong double digit profit growth
• Group EBITA up £110m, 18%
• Margins improved 2% to 28%
• Broadcast revenue growth is high margin
• In part offset by investment in schedule costs and new channel launches
• Studios acquisi-ons and revenue mix improves margins
• Cost savings con-nue to fund P&L investments
Group EBITA – good revenue growth and -ght cost control deliver £110 million of profit growth
YOY Group EBITA Tracker
14 * EBITA is before excep-onal items
£m 2014 2013 Change
Broadcast & Online 568 487 17%
ITV Studios 162 133 22%
Group EBITA* 730 620 18%
Group EBITA margin 28% 26%
87
35
33
33 15
18 5
620
730
600
640
680
720
760
2013 NAR Network schedule
Online, Pay & Interac-ve
ITV Studios Net cost savings
Investments FX impact 2014
£m
• Strong growth across all key revenue streams
• NAR up 6%, compared to a market, es-mated up around 4.5%
• 30% growth in Online, Pay & Interac-ve driven by VOD and Pay
• Schedule investment includes the costs of the World Cup and ini-al spend on ITVBe and ITV Encore
• Con-nued -ght cost control offset by marke-ng and launch costs of new channels
• Increased revenue delivers growth in profits and margins up 2% to 28%
£m 2014 2013 Change
ITV NAR 1,629 1,542 6%
Online, Pay & Interac-ve SDN external revenue Other commercial income
153 71 170
118 71 165
30% -‐
3%
Non-‐NAR Revenue 394 354 11%
Total Revenue 2,023 1,896 7%
Schedule costs Other costs
(1,018) (437)
(983) (426)
4% 2%
Broadcast & Online EBITA* 568 487 17%
EBITA margin 28% 26%
Broadcast & Online – growth in high margin revenue delivers strong profit performance
* EBITA is before excep-onal items 15
• Over £1bn invested in Broadcast content on screen
• Increased to accommodate World Cup and two new channel launches
• Spend on ITV main channel original commissions is over half of the total budget
• Fewer drama commissions in 2014 but increase in 2015 and 2016
• 2015 costs increase to c. £1,040m with a full year of new channels
Broadcast & Online – investment in content driving profitable new revenue streams
• Our fastest growing revenue streams • Making a material contribu-on to revenue
and profit growth
• Online is adver-sing around our content viewed on non-‐linear plaeorms
• Pay is primarily plaeorm operators paying us for content – HD & Encore
* EBITA is before excep-onal items 16
Network Schedule
47
25
3 10
983 1,018
900
925
950
975
1000
1025
1050
2013 Sport Commissions ITV2, ITV3, ITV4 & CITV
New Channels 2014
£m
Online, Pay & InteracOve
11
20 4
118
153
100
120
140
160
2013 Online & On Demand
Pay & Distribu-on Interac-ve 2014
£m
Jan-‐14 to Mar-‐15 Monthly ITV Family NAR • Growth across all major categories
• World Cup abracted adver-sers looking for male audience
➔ Gaming
➔ Cars ➔ Drinks ➔ Finance
• Con-nued good growth across H2
• Retail saw strong growth and not just the big supermarkets
• Entertainment & Leisure and Travel – all very strong
• Similar category growth across Q1 2015
• NAR phasing in 2015 will be driven by Easter and Rugby World Cup
Category 2014 (£m) YOY % change
Retail 332.7 11
Entertainment & Leisure 177.4 12
Finance 153.0 3
Food 131.1 12
Cosme-cs & Toiletries 109.8 (4)
Cars and Car Dealers 82.7 13
Airlines Travel and Holidays 75.4 28
Telecommunica-ons 74.5 (14)
Publishing and Broadcas-ng 65.9 (9)
Household Stores 51.8 (8)
NAR – strong growth across all key adver-sing categories con-nues across second half
17
-‐5%
0%
5%
10%
15%
20%
25%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
NOTE: Monthly ITV NAR figures and category data based on total ITV Family adver-sing
% Monthly Change Moving Annual Total
£m 2014 2013 Change
Studios UK 459 456 1%
Studios US 235 175 34%
Studios RoW 95 91 4%
Global Entertainment 144 135 7%
Total revenue 933 857 9%
Total Studio costs (771) (724) 6%
ITV Studios EBITA* 162 133 22%
EBITA margin 17% 16%
£m 2014 2013 Change
Internal – ITVS to ITV Network 366 364 1%
External revenue 567 493 15%
Total revenue 933 857 9%
• Growth coming from newly acquired businesses, in par-cular Le4field
• Organic business up 1% at constant currency
• UK business winning increased share of ITV Broadcast spend
• Good growth from interna-onal produc-on and distribu-on
• Currency now has an impact as ITVS is a more scaled interna-onal business
➔ At constant rates* revenue would have been £22m higher and profit up £5m
• Format sales, making more UK formats interna-onally and Le4field have all helped margin mix
ITV Studios – delivering growth from acquisi-ons and the interna-onal businesses
18 * EBITA is before excep-onal items
* at 2013 rates
Studios – inves-ng in an interna-onal scripted business of scale
Series 1 – a new US cable show
• Ini-al broadcast ra-ngs will determine success
• Key judgement – how we manage the deficit
• Mi-ga-on is selling rights interna-onally but pre-‐selling may reduce the upside poten-al
• Revenue is recognised as sold, profit only when certain deficit is recovered
19
$32m
$16m
$16m
Cash out Cash in
Prod
ucOo
n cost
Deficit finance
Network broadcast
licence
• Pre-‐sell to other territories • Find a co-‐produc-on partner • Wait for broadcast ra-ngs and then sell
interna-onally
Example cash flows using an 8 hour scripted drama
Series 3 – a returning success
• Costs remain broadly the same, subject to talent
• Network will pay more, resul-ng in reduced risk
• Strong demand for both new and previous series, interna-onally and from new plaeorms
• Margins enhanced as demand increases
• This applies to UK as well as US series
• Straight to series so Network commibed
• Illustra-ve license fee only
£m 2014 2013 Change
Total external revenue 2,590 2,389 8%
EBITA before excepOonal items 730 620 18%
Associates and JVs -‐ (2) -‐
Internally generated amor-sa-on (11) (12) (8)%
Financing costs (7) (25) (72)%
Profit before tax 712 581 23%
Tax (151) (136) 11%
Profit aher tax 561 445 26%
Non-‐controlling interests (7) (4) 75%
Earnings 554 441 26%
Adjusted EPS (p) 13.8p 11.2p 23%
Diluted adjusted EPS (p) 13.7p 10.8p 27%
Statutory EPS (p) 11.6p 8.3p 40%
• Strong revenue and opera-ng profit growth
• 23% growth in pre-‐tax profit helped by lower interest costs
• Tax rate also reduced to 21%
• All translates to 23% growth in adjusted EPS
Adjusted results – double digit profit growth and increased returns to shareholders
20
Technical points: • Statutory EPS up 40% -‐ higher
than adjusted due to prior year bond buybacks
• Shares in issue increased to 4,002m following the conver-ble bond redemp-ons
£m 2014 2013
EBITA before excepOonal items 730 620
Working capital movement (69) (15)
Share based costs 14 20
Capex (37) (45)
Deprecia-on 27 24
Adjusted cash flow 665 604 Profit to cash raOo 12 months rolling 91% 97%
Profit to cash conversion – strong cashflow supports the execu-on of the strategy Net Cash Movements
21
£m 2014 2013
Adjusted cash flow 665 604
Net cash interest paid (11) (24)
Cash tax paid (85) (67)
Pension funding (91) (80)
Free cash flow 478 433
£m
478
30
313
214 33 11
164 41 0
100
200
300
400
500
600
700
2013 Free Cashflow
Bond Buybacks
Dividends Acquisi-ons EBT Other 2014
• Focus on working capital remains a priority • 91% profit to cash conversion
• £47m working capital invested in building an interna-onal scripted business – likely to increase in 2015
• Free cash flow up £45m, 10%, to £478m
• Cash posi-ve even a4er £527m of M&A and dividends paid to shareholders
£250m special dividend
Inves-ng to drive organic growth
Acquisi-ons in line with strategic priori-es
Progressive dividend policy At least 20% p.a. growth for 3 years to 2016
Gradually increase leverage to 1.5x reported net debt to EBITDA
1
2
3
4
CreaOng a more efficient balance sheet whilst retaining the flexibility to conOnue to invest
2014 full year dividend of 4.7p, up 34%
22
Capital AllocaOon Framework
4 March 2015
23
Strategic Outlook Adam Crozier
24
Focus for 2015 -‐ Key opportuniOes for growth
Maximise audience and revenue share from free-‐to-‐air broadcast and VOD
business 1 Grow internaOonal
content business 2 Build a global pay and distribuOon business 3
• Economic recovery driving growth in ad market
• Improve on screen viewing performance in key demographics
• Further strengthen our content, channels and brand to maintain our unique scale
• Grow our share of total TV and VOD adver-sing
• Con-nue to drive new revenue streams through sponsorship, interac-vity and brand extensions
• Support plaeorms that make ITV content prominent
• Further invest in the quality and distribu-on of ITV Player
• Con-nue to develop IP in key crea-ve markets to exploit growing worldwide demand
• Maximise the use of our strong cash flows to finance the produc-on of high profile dramas straight to series
• Over -me build a poreolio with 6 to 10 scripted series in produc-on per annum
• Develop more 16-‐24 focused content
• Abract and retain key crea-ve talent to generate more hits
• Con-nue to look at poten-al strategic acquisi-ons
• Explore new models for content crea-on
• Develop new pay services and channels to take advantage of demand in the UK and interna-onally
• Consider wider partnerships with OTT/VOD players
• Secure retransmission fees in the medium term
• Scale interna-onal distribu-on business
• Invest in developing third party distribu-on deals
• Package and sell our content to maximise its value
Focus for 2015
Outlook • Economic recovery driving growth in ad market • NAR expected to be up 11% Q1 and 4% -‐ 7% in April • Expect to outperform the market again over the full
year
• Online, Pay & Interac-ve revenue will con-nue to grow strongly
• ITV Studios again expected to deliver around £100m revenue growth on a constant currency basis in 2015 with a return to good organic growth
• Will maintain a robust, efficient and flexible balance sheet
• Clear opportuni-es for further investment while increasing shareholder returns
Strategy • Enter next stage of ITV’s growth
strategy from posi-on of strength • Remain commibed to our vision of
crea-ng a global content and distribu-on business ➔ We see clear opportuni-es for
growth across the business – in content, online, pay and adver-sing
➔ We will con-nue to rebalance the business and grow new revenue streams
➔ Increasing emphasis on interna-onal growth
25
Overall expect another strong performance in 2015
4 March 2015
26
Appendix Full Year Results 2014
26
£m 2014 2013 Change
Revenue 2,590 2,389 8%
EBITA before excep-onal items 730 620 18%
Amor-sa-on (67) (66) (2)%
Excep-onal items (total) (7) (2) (250)%
Associates and JVs -‐ (2)
Profit before interest and tax 656 550 19%
Net financing costs* (51) (115) 56%
Profit before tax 605 435 39%
Tax (132) (105) (26)%
Profit aher tax 473 330 43%
Non-‐controlling interests (7) (4) (75)%
Earnings 466 326 43%
Earnings per share 11.6p 8.3p 40%
* Includes £30m excep-onal cost rela-ng to bond buybacks in 2014 (2013: £44m)
Reported numbers
27
£m Reported Adjustments Adjusted
EBITA before excep-onal items 730 -‐ 730
Excep-onal items (total) (7) 7 -‐
Amor-sa-on (67) 56 (11)
Financing costs (51) 44 (7)
Profit before tax 605 107 712
Tax (132) (19) (151)
Profit aher tax 473 88 561
Non-‐controlling interests (7) -‐ (7)
Earnings 466 88 554
Number of shares* (weighted average) 4,002m -‐ 4,002m
Earnings per share 11.6p -‐ 13.8p
* Diluted number of shares of 4,040m
ReconciliaOon between 2014 reported and adjusted earnings
28
* Diluted number of shares of 4,111m
ReconciliaOon between 2013 reported and adjusted earnings
£m Reported Adjustments Adjusted
EBITA before excep-onal items 620 -‐ 620
Excep-onal items (total) (2) 2 -‐
Amor-sa-on and impairment (66) 54 (12)
Financing costs (115) 90 (25)
JVs and associates (2) -‐ (2)
Profit before tax 435 146 581
Tax (105) (31) (136)
Profit aher tax 330 115 445
Non-‐controlling interests (4) -‐ (4)
Earnings 326 115 441
Number of shares* 3,929m -‐ 3,929m
Earnings per share 8.3p -‐ 11.2p
29
£m 2014 2013 Change
Commissions 517 548 (6)%
Sport 175 128 37%
Acquired 35 36 -‐
ITN News and Weather 45 44 2%
Total ITV 772 756 2%
Regional news and non-‐news 67 63 6%
ITV Breakfast 43 41 5%
Total ITV inc regional & Breakfast 882 860 3%
ITV2, ITV3, ITV4, ITV Encore, ITVBe, CITV 136 123 11%
Total schedule costs 1,018 983 4%
Broadcast schedule costs
30
£m 2014 2013 Change Organic change*
Studios UK 459 456 1% (4)%
Studios US 235 175 34% 5%
Studios RoW 95 91 4% 7%
Global Entertainment 144 135 7% 10%
Total 933 857 9% 1%
* At constant currencies and excluding revenue from 2013 and 2014 acquisi-ons
ITV Studios revenue
31
AcquisiOon Country
IniOal consideraOon
(£m)
Expected total consideraOon*
(£m)
Max total consideraOon*
(£m) Expected
payment date
Le4field US 214 233 504 2019
DiGa Vision US 5 10 33 2020
United Denmark 1 4 5 2018
Total for 2014 220 247 542
Total for 2013 66 93 204 2017-‐2021
Total for 2012 42 67 101 2016-‐2018
Total 328 407 847
Equity interest currently not owned:
• Gurney 38.5% • Thinkfactory 35% • High Noon 40% • DiGa Vision 49% • Le4field 20%
* Undiscounted and including ini-al considera-on. All payments are performance related
AcquisiOons
32
£m 2014 2013
€50m Eurobond at 10% coupon Jun 14 (1) (2)
£78m Eurobond at 5.375% coupon Oct 15 2 2
£135m Conver-ble Bond at 4% coupon Nov 16 (redeemed in 2013) -‐ (3)
£161m Eurobond at 6.125% coupon Jan 17 (7) (9)
£62m Loan at 13.55% coupon Mar 19 (repaid in Jan 2014) -‐ (6)
£525m RCF Interest (2) -‐
Financing costs directly arributable to bonds and loans (8) (18)
Other 2 (2)
Cash-‐related financing costs (6) (20)
Non-‐cash movements
Amor-sa-on of bonds (1) (5)
Adjusted net financing costs (7) (25)
Mark-‐to-‐market on bonds and swaps (9) (9)
Imputed pension interest (17) (20)
Losses on buybacks (30) (61)
Other net financing income 12 -‐
Statutory net financing costs (51) (115)
Financing costs
33
ExcepOonal costs
£m 2014 2013
Reorganisa-on and restructuring costs (6) -‐
Acquisi-on-‐related expenses (6) (8)
Total operaOng excepOonal items (12) (8)
Gain on sale of non-‐current assets 4 -‐
Gain on sale of subsidiaries and investments 1 6
Total non-‐operaOng excepOonal items 5 6
Total excepOonal items (7) (2)
34
£m 2014 2013
Profit before tax 605 435
Excep-onal items (net) 7 2
Amor-sa-on of intangible assets* 56 54
Adjustments to net financing costs 44 90
Adjusted profit before tax 712 581
Tax charge as reported (132) (105)
Net charge for excep-onal items (2) (1)
Charge in respect of amor-sa-on of intangible assets* (12) (12)
Charge in respect of adjustments to net financing costs (10) (21)
Other tax adjustments 5 3
Adjusted tax charge (151) (136)
EffecOve tax rate on adjusted profits 21% 23%
Total cash paid (85) (67)
* In respect of intangible assets arising from business combina-ons
P&L tax charge and cash tax on reported basis
35
£m 31 December 2014 31 December 2013
€50m Jun 14 -‐ (15)
£78m Oct 15 (78) (78)
£161m Jan 17 (161) (161)
£62m Mar 19 (repaid in Jan 2014) -‐ (62)
Finance Leases (17) (38)
Cash and cash equivalents 297 518
Net cash 41 164
£m 31 December 2014 31 December 2013
Cash and cash equivalents 297 518
Debt (256) (354)
Net cash 41 164
Analysis of net cash
36
Pension deficit
IAS 19 Pension deficit
37
91
70
472
390 20 445
346
200
250
300
350
400
450
500
550
600
650
700
750
800
December 2013 Deficit funding Change in liabili-es: Decrease in infla-on
Change in liabili-es: Decrease in bond yields
Change is assets: Investment returns
Other movements December 2014
Will not exceed contribu-ons made in 2014
At the same level as 2014 due to debt buybacks
Tax rate consistent with 2014 at 21%, cash tax will be more in line with P&L charge
Around £40-‐45 million, similar to 2014
Around £1,040 million reflec-ng our new channels
39
Interest
Tax
Capex
NPB
2015 Planning assumpOons – inves-ng while remaining focused on cash and costs
Around 85% due to investment in scripted content Profit to cash
Pension
Policy for at least 20% p.a. growth in ordinary dividend for 3 years to 2016 Ordinary dividend