Nomura Global Media SummitUnderstanding PR Newswire

Ninan Chacko

1Wednesday 29th May 2013

UBM’s strategy is yielding positive momentum

Strong business models Focus capital on hi h t t

ghighest returns

Attractive geographies & sectors

Focus business on growth

Positive culture Focus people on what b t twe are best at

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UBM: The right products... in the right places...

Segmental split Geographic splitSegmental split –2012 Revenues

2%

Geographic split –2012 Revenues

21%8%

12%

54%25%

52%

26%

8%

EventsPR NewswireMarketing Services

N.America Emerging MarketsEurope UKOther

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Marketing Services Other

PR Newswire: at a glance

• 2012 revenue in excess of $300 million with 31% generated outside of the US• 4.5% underlying revenue growth

• Approximately 1,400 employees in 13 countries

• Over 350,000 releases distributed in 2012• Only 5% of PR Newswire’s revenues are from the distribution of US earnings 

releases

O 25 000 i N h A i l d i l 27% f US• Over 25,000 customers in North America alone and approximately 27% of US Distribution revenue is under contractual agreement

• Product and services traditionally focused on the public relations and investor• Product and services traditionally focused on the public relations and investor relations verticals

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PR Newswire: a market‐leading, innovative company driving value for our investors

Delivering consistent growth at attractive margins Delivering consistent growth at attractive margins 

Changing communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunities

Investments in product and sales are strengthening our businessInvestments in product and sales are strengthening our business

International markets are avenues for additional growthInternational markets are avenues for additional growth

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PR Newswire25% of total UBM revenue, 23% of total UBM adjusted operating profit

2012(£m)

2011(£m)

Change(%)

UnderlyingChange (%)

US Distribution 94.9 88.7 7.0 5.6

US Other(1) 19.7 21.4 -7.9 -9.1

US Vintage 20.8 17.9 16.2 24.1

Canada Newswire (CNW) 30.7 30.8 -0.3 0.2

PR Newswire Europe 19.2 18.7 2.7 2.7

PR Newswire Asia & LatAm 11 1 10 3 7 8 8 0PR Newswire Asia & LatAm 11.1 10.3 7.8 8.0

Total PR Newswire revenue 196.4 187.8 4.6 4.5

Adjusted operating profit 43.5 41.0 6.1j p g p

Adjusted operating profit margin 22.1% 21.8% 0.3pt

6(1)Other includes broadcast and webcast productions, targeting and monitoring work flow products and media and IR rooms.

PR Newswire: revenue growth 2003 – 2012

$350m

$250m

$300m

$200m

$

Asia/Latam

PRNE

CNW

$100m

$150m CNW

USA

$0m

$50m

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Chart adjusted to fully consolidate CNW results 2003‐2005, to provide consistency with reported results in subsequent years.1 Acquisitions included in 2009‐2012 revenue are comprised of: The Fuel Team, USA, 2009; VPO, USA, 2009; dna13, Canada, 2010; C360, Asia, 2010; PR Newswire Brazil, 2010, PR Newswire Argentina, 2010; Hors Antenne, Europe, 2010; CNW, Canada 2012.

PR and IR – PRN’s Traditional Focus

$4 4b $5bUS market size

Engagement

AnalysisFiling and Printing

Distribution Disclosure

80%

90%

100%Public Relations

Investor Relations

Estimated  $4.4b $5b

$4.4b $5b

HIGH

Monitoring

g g

Hosting/ Engagement

Printing

60%

70%

80%market size

PR Newswire addressable market

$2.7b $1.4brket 

bility

Events

Targeting

30%

40%

50% Customers we serve

PR depts.AgenciesCMOsCorporate 

IR depts.CFOsAgenciesPR

N M

arAd

dressa

Identification /surveillancePR Events

Content creation

10%

20%

30%

LOW

comm.

surveillancePR Events0%

Public Relations Investor Relations

S AMR I t ti l h PR N i h

PR IR

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Source: AMR International research, PR Newswire research

Advertiser Rating Effectiveness for Lead Generation of Marketing Methods

80%

90%Consumer Rates

Method More Effective

PR is a strong component in the marketing mix

EmailConferences

Exhibitions

Own Sites

O S i l

Own EventsPR

70%

80%

Custom PrintDirect Mail

ExhibitionsOwn Social

Print MagazinesPrint Newspaper

Search

Ads on Social Nets

50%

60%

sumer

B2B Rates Method

General SitesSmartphones

Print DirectoriesCollateral

Sponsorship

Virtual Exhibitions

Tablets

40%

50%

Con More Effective

Topic Specific Sites

Vertical Search

WebinarsTablets

20%

30%

10%10% 20% 30% 40% 50% 60% 70% 80% 90%

B2B

Blue = Digital, Orange = Traditional

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B2B

Source: Outsell 2013 Advertising and Marketing Study

Convergence of PR, marketing and communications g gIn addition to the trend toward paid internet and mobile, brand marketers and agencies are shifting their efforts and investments towards earned and owned media

• Earned media is increasing in 

Earnedmedia

Paidmedia

Ownedmedia g

importance

• Boundaries are increasingly blurred 

• Facilitating consistent messagingA brand pays to place ad or 

Publicity gained when an 

A brand owns a channel Facilitating consistent messaging 

across all three

• Increased mobile and social activity is accelerating earned media growth 

content in a channel

Advertising, Events

influencer promotes a 

brand

Press pickup

Company blogs,Company website,

Twitter account• Ecommerce is becoming embedded into all three, with the option to buy from a channel, ad or link

Events,        Direct Marketing

Press pickup,Sharing online,Word of mouth

Twitter account / Facebook page

Social / Mobile / Search

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PR Newswire: satisfies needs across the PR and IR value chains

Text press 

CREATE CONTENT TARGET ENGAGE DISTRIBUTE REPORT / ANALYZE MONITOR

VALU

E HAIN Broadcast / 

Webcast i

Workflow platform

Expert d t b

Branded webpages

Broadcast / 

preleases

Multimedia releases ROI reporting Workflow 

platform

PR V C services database Webcast 

servicesTargeted distribution

Social media

/ /IDENTIFICATION EVENTS HOSTING / ENGAGEMENT DISCLOSURE FILING / 

PRINTING

UE 

N Retail IR Rooms Earnings

IRVA

LCH

AI

Retailshareholder demographics

Virtual investor conferences

IR RoomsRetail investor communities

Earningsreleases

IR WebcastsSEC filing services

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Standard text press releases comprise the majority of our releasesUS Distribution

Text onlyEvent driven releasesEvent driven releases• Marketing• Political

h• Tradeshow• Earnings• Exec.  announcementsBroad distributionOur legacy product

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Increasingly sophisticated means of engaging with an audienceUS Distribution

O li di t ib ti ith M lti di NOnline distributions with photo

Multimedia NewsReleases ARC Engagement Platforms

Photo (image such as photo or Photo + Video + Audio + PDFs + Photo + Dynamic Video D di d HTML PPhoto (image such as photo or 

infographic)Photo   Video   Audio   PDFs   

Dedicated Page + Dedicated HTML Page + Strategic Placement

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Enhanced releases drive increased visibilityUS Distribution

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Growing trend towards higher engagement contentUS Distribution

23%

21%

23%

21%

17%

19% 19%

15%

17%

14%

11%

13%14%

11%12% Enhanced releases

9%

11%

Enhanced releases contain one or more of the following: photo social

11%

9%

as % of PR Newswire release volume

7%2007 2008 2009 2010 2011 2012

Enhanced releases contain one or more of the following: photo, social media, multimedia, microlist

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Our global distribution network is a significant competitive advantagep g

N ti l iGlobal network of National news servicesFinancial news outletsPRN Journalist portal

Global network of almost 10,000 websites, databases and appsapps

PR Newswire Global Network

m.prnewswire.com 183 mobile apps, mobile sites or eReaders

PRN.com produces 4 to 5 million views per monthGoogle page rank: 8eReaders

PRN Twitter NetworkPRN Google+,

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Facebook, LinkedIn and Tumblr pages

Our operations group processes content for distribution through our global media networkg gUS Distribution

1 Receive and Authenticate1. Receive and Authenticate

2. Manipulate and Format

3 Di t ib t d R t3. Distribute and Report

Co‐creation is Driving Innovation, Collaboration and Customers into Dealerships

Co‐creation is Driving Innovation, Collaboration and Customers into Dealerships, According to 

CustomerCustomer

Content SpecialistsContent Specialists

17Global Distribution NetworkGlobal Distribution Network

Global network of almost 10,000 websites, databases and apps

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National news services Financial news outletsPRN J li t t lPRN Journalist portal

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PRN.com produces 4 to 5 million views per month

Google page rank: 8

Search for “pwc dealerships”Search for  pwc dealerships

PRNewswire comPRNewswire comPRNewswire comPRNewswire.com release is the first hitPRNewswire.com release is the first hitPRNewswire.com release is the first hit

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PRN Twitter NetworkPRN Google+, Facebook, LinkedIn and Tumblr pagesand Tumblr pages

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m.prnewswire.com mobile apps, mobile sites or eReaders 

PR Newswire has 180+ mobile partnerships

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iReach: self‐service capability that can be integrated into 3rd party platformsp y pUS Distribution 

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Workflow platform: target, engage, distribute, monitor and analyzeyUS Other

Create Target Engage Distribute Analyze Monitor

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Audience engagement solutionsUS Other

Broadcast Production ServicesLive view of a Satellite Media Tour

MediaRoom/IR RoomMediaRoom/IR RoomPRN‐hosted and customer branded

Integrated into a customer’s website

Webcast Production ServicesCustomized production and hosting

products and services

25http://southwest.investorroom.com/

Vintage provides comprehensive filing services for US public companiesUS Vintage

XBRL Typesetting PrintEDGAR

• Specialized 

Investment 

Management Team

• Single Source filing

• Dedicated 

f di t

• Annual Reports

• Proxy Statements 

Offering

• Serves both Capital 

and Investment  

Management

• Efficient offshore 

resources

proofreading team

• Xyvision

Composition 

Offering

• Memorandums

• Experienced 

Management

• fleXBRL offering

• Volume pricing• Flexible Software Platform

pe e ced

compliance and 

transaction team

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PR Newswire: strong customer relationshipsg p

3 500

4,000• Fragmented customer base

• $42m in US wire distribution revenue via subscriptions Dec 12 (2011: $30 8m)

# of US customers with 1yr+ distribution contracts

2 500

3,000

3,500 subscriptions Dec-12 (2011: $30.8m)

• 19,000+ customers in the US

• No single customer accounts for more than

1,500

2,000

2,5002% of revenue

Other, 7%

Non-Profit, 8%

500

1,000

1,500

Agency, 26%

Public, 29%

02007 2008 2009 2010 2011 2012

Private, 29%

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PR Newswire Canada (CNW)( )

• £30.7m revenues in 2012 • 16% of PR Newswire’s revenue• Negligible growth in 2012

• Lower proportion of Multimedia at present

• Similar economics to US business

• Remaining interest acquired from the• Remaining interest acquired from the Press Association in November 2012

• The acquisition will achieve revenue synergies through product introduction and consultative selling and cost efficiencies across the two organizationsCalgary

Ottawa

Vancouver

MontrealToronto

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PR Newswire Europe

• £19.2m of revenues in 2012

p

£19.2m of revenues in 2012

• 10% of PR Newswire’s revenue

• 2.7% underlying revenue growth 2012

Th di ib i k i E i ill

Stockholm

• The distribution market in Europe is still developing

• Product and service focusLondon

• International distribution

• Targeting services

• We have invested to fuel continued i E th Middl E t

Paris

expansion across Europe, the Middle East and India• Solidified our place in France with the acquisition of Hors Antenne

Dubai

acquisition of Hors Antenne

• PRN Europe continues to offer opportunities for new markets and product growth

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Emerging Markets: Latin America and Asiae g g a ets: at e ca a d s a

• £ 11.1m of revenues in 2012• 6% of PR Newswire’s revenue• 8% revenue growth in 2012• Brazil, China and India are the focus of our global expansion efforts

Mexico City

Beijing• China similar to North America:

Sao PauloShanghai

China similar to North America: Distribution and compliance services make up the majority of revenue• Premium service provider with 

unmatched local supportunmatched local support• Core LatAm business is media 

monitoringShenzen

Mumbai Hong Kong

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PR Newswire: a market‐leading, innovative company g p ydriving value for our investors

Delivering consistent growth at attractive margins Delivering consistent growth at attractive margins 

Changing communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunitiesChanging communications landscape providing growth opportunities

Investments in product and sales are strengthening our businessInvestments in product and sales are strengthening our business

International markets are avenues for additional growthInternational markets are avenues for additional growth

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Sponsored ADR Program –p g

Benefits of UBM ADRs to US investors:UBM ADRs trade on the US over-the- e e ts o U s to US esto s

• Clear and settle according to normal USstandards

UBM ADRs trade on the US over thecounter (OTC) market under the following information:

S b l UBMPY • Zero Stamp Duty Reserve Tax on ADR issuances (normally 1.5%)

• Offer the convenience of stock quotes and dividend payments in US dollars

Symbol UBMPYCUSIP 90265U104Ratio 1 ADR : 1 ORDCountry Jersey dividend payments in US dollars

• Can be purchased/sold in the same way as other US stocks via a US broker

• Provide a cost-effective means of

Country JerseyEffective Date Sept 4, 2012Underlying SEDOL B2R84W0Underlying ISIN JE00B2R84W06 • Provide a cost-effective means of

international portfolio diversificationUnderlying ISIN JE00B2R84W06Depositary BNY Mellon

For questions about creating UBM ADRs please contact BNY Mellon:For questions about creating UBM ADRs, please contact BNY Mellon:Hong KongJoe Oakenfoldemail: joe.oakenfold@bnymellon.comTel: +852 2840 9717

New YorkRavi Davisemail: ravi.davis@bnymellon.comTel: +1 212 815 4245

LondonMark Lewisemail: mark.lewis@bnymellon.comTel: +44 (0)20 7964 6089

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Q & A

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