Bloomsbury Publishing Plc

1
Bloomsbury Publishing Plc
2001 Resultsfor the six months to 30th June 2001
2
2001 Interim Results

• Presentation
• Nigel Newton
• Colin Adams

38 Soho Square London W1D 3HB Tel
020 7494 2111 Fax [phone]
2714 nigel_newton_at_bloomsbury.com
colin_adams_at_bloomsbury.com www.bloomsburymagazine
.com
3
Bloomsbury Publishing PlcAgenda

• Highlights of first six months of 2001
• Financials
• Continued organic growth
• Adding value
• Acquisition strategy
• Outlook
• Summary

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
4
Unlocking the value

• Bloomsbury is
• Exploiting a broader base of publishing rights
  in-house to benefit from the margin as opposed to
  the royalty income stream
• Utilising its cash to invest in more long-term
  licences to books to drive further global organic
  growth
• Evaluating acquisitions of companies and title
  assets using strict criteria

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
5
2001 first six month highlights

• Turnover increased by 100 to 22.721m from
  11.365m
• Pre-tax profit before goodwill increased by
  2.577m to 2.850m (2000 0.273m)
• Interim dividend increased by 50 to 1.5p
• Earnings per share before goodwill increased from
  1.44p to 11.70p
• Net cash on deposit increased from 7.472m at
  31st December 2000 to 15.610m at 30th June 2001
• Continuing pipeline of bestsellers in 2001 The
  Fourth Hand - John Irving, Kitchen Confidential
  - Anthony Bourdain, The Flaneur - Edmund White,
  Harry Potter and the Goblet of Fire - JK Rowling,
  The Death of Vishnu - Manil Suri, Witch Child -
  Celia Rees
• Backlist revenue from book sales excluding AC
  Black increased 142 to 12.290m from 5.076m
• Bloomsbury Childrens USA launched
• Audio list launched

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
6
Financial summaryConsolidated profit and loss
accountsfor the six months ended 30th June


30th June
30th June
Six months
Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
7
Financial summaryAC Black profit and loss
account for the six months ended 30th June
Six months
30th June
30th June
Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
8
Financial summaryConsolidated balance sheet
31st December
30th June

Net cash on deposit includes 1.989m set aside
for loan note holders
Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
9
Financial summaryBalance sheet analysis
31st December
30th June
All figures are shown in m
Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
10
Financial summaryOperating cash flow

• 1998 - (0.290m)
• 1999 - (2.804m)
• 2000 - 2.061m
• 2001 - 8.508m

• Receipts from year end debtors
• Growth in backlist in 2001
• Strong frontlist publishing programme

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
11
Continued Organic GrowthSustainability

• Increasing the value of the groups backlist
• Backlist increased 142 to 12.290m from 5.076m
• Continual reissue and re-promotion of backlist
  library
• Ongoing generic marketing campaigns
• Paperback rights reversion
• Revised and new editions of backlist titles
• New authors
• Developing existing authors for future
  backlist revenue generation

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
12
Continued Organic GrowthSustainability

• Growing export sales
• Using the success of Harry Potter to leverage new
  business
• Export business development manager
• New export distribution agreements signed for AC
  Black
• Exploiting demographics with Harry Potter
• Continued focus on cost control and maximising
  margins
• Print costs re-negotiated for next three years
• UK Distribution contract under negotiation for
  2003 renewal

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
13
Adding ValueExploiting rights in-house

• Bloomsbury Childrens USA formed
• Editorial director recruited
• Marketing director recruited
• List being developed for 2002 publication
• US rights in UK originated titles retained for
  Bloomsbury USA publication
• 60 books to be published in 2002
• Acquiring world rights to books

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
14
Adding ValueExploiting rights in-house

• Audio publishing list underway
• The Tynan Diaries (2001)
• Joanna Trollope - Girl from the South (2002)
• The next two Margaret Atwoods under contract
  (2003)
• Holes by Louis Sachar (2002)
• Witch Child by Celia Rees (2001)
• The Sorceress by Celia Rees (2001)

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
15
Adding ValueExploiting rights in-house

• Digitisation of Whos Who
• Will be completed this year
• Negotiations with potential licensees
• Translation rights initiative
• Business plan under development
• New reference databases
• Database concepts being evaluated

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
16
Acquisition StrategyTerritories areas of business

• UK and US
• Adult fiction
• Adult non-fiction
• Reference
• Business reference
• General information
• Specialist reference for AC Black
• Childrens

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
17
Acquisition StrategyCriteria

• Established operation
• Must be core business to Bloomsbury
• The management of Bloomsbury must be able to add
  value
• Minimal distraction from existing operations
• Must complement existing operations
• Synergistic benefits to the group

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
18
OutlookGood investment credentials

• No dependence on advertising revenues
• Strong balance sheet and cash position
• Healthy track record of book sales during
  economic recession

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
19
Outlook2001 July to December

• Big books to come in the second half of 2001
• The Tynan Diaries
• Harry Potter and the Goblet of Fire paperback
• Encarta Concise Dictionary
• Encarta College Dictionary
• Writers and Artists Yearbook
• Raptors of the World
• All Families are Psychotic - Douglas Coupland
• The Tulip paperback
• A Cooks Tour - Anthony Bourdain
• The Blind Assassin paperback - 2000 Booker Prize
  winner

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
20
Outlook2001 July to December

• Harry Potter and the Philosophers Stone film to
  be released on November 16th
• Success of books and the film
• Harry Potter and the Chamber of Secrets film now
  in production

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth
21
Summary

• There are many opportunities to increase revenues
  and profits from Bloomsburys existing operations
• Looking for suitable acquisitions that fit in
  with Bloomsburys specific acquisition criteria
• Cash generated from operations will be used
  wisely to drive future organic and acquisition
  growth

Adding value
Highlights
Outlook
Financials
Summary
Acquisition strategy
Continued organic growth