Full year financial results 24 May 2016
1 2 3 4 Highlights Full Year Financial Results Strategic Update Q&A
1 Highlights Darren Throop
Highlights The Group has delivered solid full year results with strong growth in Television and Family despite short-term slate challenges in Film eone remains well-positioned to benefit from long-term structural industry drivers Continue to successfully build our content pipeline, supported by strategic investments and corporate acquisitions in FY16 Foundations for growth now in place, with high-quality content partnerships locked in. Focus on delivery through organic growth Funding for the long-term has been put in place to support the organic growth strategy Content markets remain dynamic, the Group continues to review M&A opportunities
2 Full Year Financial Results Giles Willits
Full Year Financial Highlights Revenue 803m 2.2% Strong Television & Family offset by Film EBITDA 1 129m 20.3% Organic TV/Family growth and acquisitions EBITDA % 16.1% 240bps Increased profile of TV and Family in mix EPS 2 19.4p 6.7% Impacted by weaker Film performance Positive free cash flow 43.3m 30.7m Adj cash flow conversion 3 of 62.4% Net debt 181m 44.1m 1.4x Group EBITDA leverage 4 Dividend 1.2p 9% In line with progressive policy
Revenue up 2.2% Strong growth in Television and Family, offset by weaker Film performance m FY16 FY15 Change Television 244.7 186.5 31.2% eone Television 187.9 148.4 26.6% The Mark Gordon Company 14.6 n/a Music 5 42.2 38.1 10.8% Family 66.6 60.8 9.5% Film 553.4 592.6 (6.6%) Total Divisional Revenue 864.7 839.9 3.0% Eliminations 5 (62.0) (54.1) 14.6% Total Group Revenue 802.7 785.8 2.2% Year-on-Year Divisional Revenue Bridge 5.8m 839.9m 58.2m 39.2m 864.7m Television 31.2% Organic growth in eone Television First full year of The Mark Gordon Company Music growth reflecting stronger release schedule Family 9.5% Continuing global expansion of Peppa Pig PJ Masks launch and Ben & Holly s Little Kingdom growth Film 6.6% Lower theatrical activity and weaker than expected performance on certain titles Foreign exchange Translation impact of stronger pound against the Canadian and Australian dollar and the euro underlying revenue growth on a constant currency basis was 5.7% Acquisitions Accounted for 21.6m of revenue growth, primarily in Film. Underlying organic revenue growth 2.9% on a constant currency basis FY15 Television Family Film FY16
EBITDA up 20.3% Growth driven by Television and Family, offset by Film performance m FY16 FY15 Change Television 39.2 17.8 120.2% eone Television 22.8 15.8 44.3% The Mark Gordon Company 14.4 0.6 2300% Music 2.0 1.4 42.9% Family 43.3 23.8 81.9% Film 52.8 73.1 (27.8%) Total Divisional EBITDA 135.3 114.7 18.0% Centre (6.2) (7.4) (16.2%) Group EBITDA 129.1 107.3 20.3% EBITDA Margin % 16.1% 13.7% 240bps Year-on-Year EBITDA Bridge 19.5m 20.3m 21.4m 1.2m 129.1m 107.3m Group EBITDA margin % 240 bps Increased profile of Television and Family in margin mix Television 120.2% 44.3% organic growth in eone Television The Mark Gordon Company delivery in line with expectations Music up year-on-year reflecting stronger release schedule and mix of sales Family 81.9% Strong performance reflecting organic growth and impact of the ABD acquisition Film 27.8% Revenue decrease and impact from weak prior year box office on ancillary windows Foreign exchange Underlying EBITDA growth on a constant currency basis is 24.0% Acquisitions Acquisitions during the year accounted for 14.8m of EBITDA growth, primarily in Family. Underlying organic EBITDA growth 9.8% on a constant currency basis FY15 Television Family Film Centre FY16
eone Television Strong organic growth through increased production and sales activity positive outlook in FY17 Revenue/EBITDA Growth CAGR Revenue 24% 148.4m 187.9m Own Production/Third Party Content Half Hours FY16 FY15 33% 154 80.1m 97.7m 111.1m 72 96 137 247 Season 1 Season 2 Season 3 Season 4 Season 5+ 752 998 67 172 418 Net revenue Underlying EBITDA 9.5m 11.8m 12.5m 15.8m 22.8m 200 187 FY12 FY13 FY14 FY15 FY16 Investment in Production * /Third Party Content 100.7m 70.9m 73.6m 70.3m FY12 FY13 FY14 FY15 91.8m FY16 Positive FY17 Outlook Key shows greenlit Sharp Objects Ransom Cardinal Mary Kills People You Me Her Naked and Afraid FY16 Shows greenlit/contracted as % of FY17 budgeted margin 61% 61% Own production Tax Credits Third party content * FY12-FY14 have not been adjusted to reflect changes in accounting standards for IFRS 11 Joint Arrangements Greenlit/ Contracted Not yet Greenlit/Contracted
The Mark Gordon Company Positive performance since acquisition, strong development slate moving into production m FY16 FY15 Change Revenue 14.6 n/a EBITDA 14.4 0.6 2300% Example production profile % of production MGC (15% 20%) Commissioning Broadcaster (55% 70%) Accounting Investment in Production: $50.0m pre delivery (pre tax credits) $37.5m $42.5m on delivery (post tax credits) Financing MGC : $7.5m $10.0m Production Financing $40.0m $42.5m Production budget $m $7.5m $10.0m $40.0m $42.5m New Seasons Producer fees from five network shows during the year Grey's Anatomy XII Criminal Minds XI Criminal Minds: Beyond Borders Quantico Ray Donovan III All renewed for next season Library Profit Participations Principally from Criminal Minds and Grey's Anatomy franchises In line with expectations at time of acquisition Going Forward Move in July 2015 from ABC overhead deal will drive increase in investment in productions through MGC first productions Designated Survivor and Conviction both picked up for series Production risk mitigated in normal way to reduce MGC deficit gap to 15% 20% Change in Shareholder Agreement Move from JV accounting to 100% consolidation in May 2015 Cash to Accrual accounting following 100% consolidation Impact in current year increase EBITDA by 3.5 million relating to prior year Tax Credits (15% 25%) Risk MGC capital at risk: $7.5m $10.0m (15% 20%) Positive FY17 outlook 72% of budgeted margin currently greenlit
Family Strong organic growth in revenues in line with expectations, driving increased EBITDA, supported by ABD acquisition Net Revenue Underlying EBITDA 16.4m 17.5m 5.9m 5.2m CAGR Revenue 42% 66.6m 60.8m 43.3m 35.5m 23.8m 10.3m FY12 FY13 FY14 FY15 FY16 Revenue Profile By brand By media 66.6m 66.6m 60.8m 60.8m FY15 FY16 FY15 FY16 Peppa BHLK PJ Masks Other TV Digital HV L&M Other Peppa Pig: on track to double Continued organic growth in global revenues US$1.1 billion retail sales supported by c.500 new and renewed broadcast and licensing agreements US performed strongly, driver of growth in FY17 Future growth territories include China, South East Asia, France and Canada Strong growth in digital Acquisition of 70% of ABD Limited Step up in EBITDA following ABD acquisition in October 2015, in line with expectations eone now has control of the brand with production of new episodes underway Ben & Holly s Little Kingdom: gaining momentum Strong ratings and good revenue growth helped by digital deals Opportunity in Latin America and Nick Jr broadcast agreement supporting future US L&M programme PJ Masks: strong broadcast start Strong performance since launch on Disney in US Global roll out and launch of licensing and merchandising in FY17
Film Challenging year for Film, fewer releases and weaker slate offset by positive production performance m FY16 FY15 Change Distribution 494.9 581.4 (14.9%) Production 60.4 20.9 189.0% Eliminations (1.9) (9.7) (80.4%) Total Revenue 553.4 592.6 (6.6%) EBITDA 52.8 73.1 (27.8%) Investment in Content/Productions Distribution revenues 14.9% Challenging year with lower box office from fewer releases and weaker performance in second half of certain titles - knock on impact into home entertainment window Digital and Broadcast performance reflecting weakness of FY15 slate releases Production revenues 189.0% Increased revenue from sale of productions including Spotlight and Trumbo Productions included Eye in the Sky, Insidious 3 and Sinister 2 Also included revenues from strategic investment made in December in Sierra which added 20.2m of revenue Film EBITDA reduction reflects impact of reduced revenues, the weaker performance of the FY15 film slate and the mix of titles, partially offset by operating expense savings 189.7m Investment in Content Investment in Productions 154.2m Film Distribution Revenue by window 94.5m 98.3m % 100 581.4m 7% 494.9m 10% 60.9m 21.5m 11.9m 0.8m FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Box office (US$m) 212 376 540 308 259 No. Theatrical releases 152 214 275 227 210 80 60 40 20 0 37% 42% 14% 38% 39% 13% FY15 FY16 Theatrical Home entertainment Broadcast and digital Other
Adjusted EPS down 6.7% reflecting weaker Film performance and increased finance costs m FY16 FY15 Change Underlying EBITDA 129.1 107.3 20.3% Depreciation/amortisation (4.4) (3.7) 18.9% Adjusted net finance charges (20.6) (14.8) 39.2% Adjusted profit after tax 104.1 88.8 17.2% Adjusted tax (24.5) (20.0) 22.5% Adjusted profit after tax 79.6 68.8 15.7% Less: Adjusted non-controlling interests 6 (6.1) 0.5 n/a Adjusted earnings attributable to shareholders 73.5 69.3 6.1% Adjusted diluted EPS (p) 19.4 20.8 (6.7%) Statutory diluted EPS (p) 9.6 12.5 (23.2%) Adjusted EPS 18.3p 20.8p 19.4p 13.7p 13.9p FY12 FY13 FY14 FY15 FY16 Adjusted ROCE 14.7% 15.2% 15.4% 12.0% 12.3% Adjusted earnings growth at 6.1% is lower than EBITDA growth impacted by: Higher finance costs reflecting full year effect of MGC acquisition in FY15 and incremental interest from Bond re-financing Tax rate remains consistent at 22.6% (2015 : 22.6%) Increased non-controlling interest reflecting acquisitions of ABD and MGC Adjusted EPS down 6.7% reflecting mix of earnings with weaker performance in Film offset by recent acquisitions Statutory EPS lower than adjusted EPS reflecting: Impact of one-offs ( 16.6m) pre tax m FY16 FY15 Acquisition costs 4.2 3.5 Restructuring costs 12.4 14.4 One-offs 16.6 17.9 Acquired intangibles ( 27.4m) pre tax Share-based payments ( 4.1m) pre tax One-off net financing charges ( 6.5m) pre tax Adjusted Return on Capital Employed lower impacted by: Weaker Film performance and increased capital employed from acquisitions in the year FY12 FY13 FY14 FY15 FY16
Improved positive free cash flow driven by increased EBITDA and positive content investment gap FY16 m TV Family Film Centre Total TV Family Film Centre Total Underlying EBITDA (exc. Production) 32.0 43.6 51.8 (6.2) 121.2 7.5 24.1 71.7 (7.4) 95.9 Content investment/amortisation gap 5.5 (1.5) 21.6 25.6 5.3 (0.2) (6.1) (1.0) Production investment/amortisation gap (7.7) (1.6) (3.2) (12.5) 0.7 (0.4) 0.3 Working capital (15.6) (13.3) (25.3) (54.2) (17.2) 1.3 (47.1) (63.0) Joint venture movements (4.5) (4.5) (0.4) (0.1) (0.5) Adjusted cash flow 9.7 27.2 44.9 (6.2) 75.6 (4.8) 25.9 18.0 (7.4) 31.7 Cash conversion (%) 30.3% 62.4% 86.7% 62.4% (64.0%) 107.5% 25.1% 33.1% Capital expenditure (7.7) (2.7) Net interest paid (10.2) (10.9) Tax paid (14.4) (5.5) Free cash flow 43.3 12.6 FY15 Improvement in EBITDA to cash flow conversion, up from 33.1% to 62.4%. Key drivers for improvement are: Increased EBITDA year-on-year Positive investment in content gap reflecting lower film content spend in year Improved working capital movement, particularly in Film Positive free cash flow of 43.3 million, after interest, tax and capital expenditure significantly up on last year
Improved net debt leverage at 1.4x driven by positive free cash flow in the year m FY16 FY15 Net debt (180.8) (224.9) Net debt to Group EBITDA leverage 1.4x 2.1x Adjusted Net Debt Bridge Financial Policy Priorities Invest in organic growth Focus on Television and Family (funded through production financing) Corporate acquisitions in line with strategic priorities ( 224.9m) 43.3m ( 20.7m) ( 4.0m) ( 177.0m) 194.5m 8.0m ( 180.8m) Progressive dividend in line with Board policy Adjusted net debt: Group EBITDA leverage improve to less than 1.0x by FY20 FY15 Net Debt Free Cash One-offs Flow (inc. Financing) Dividends Acquisitions (inc. acq. Intangibles) Share Issue FX FY16 Net Debt
Production Financing increased reflecting acquisitions during the year offset by positive investment/amortisation gap FY16 m TV Family Film Total TV Family Film Total Production underlying EBITDA 7.2 (0.3) 1.0 7.9 10.3 (0.3) 1.4 11.4 Production investment/amortisation gap 5.8 (1.1) 21.3 26.0 (11.9) (1.3) (19.4) (32.6) Working capital (11.4) 0.5 3.5 (7.4) (2.3) 1.0 (5.6) (6.9) Joint venture movements (0.5) (0.5) 0.4 0.4 Production adjusted cash flow 1.6 (0.9) 25.3 26.0 (3.9) (0.6) (23.2) (27.7) Capital expenditure (0.9) (0.3) Net interest paid (0.1) (2.5) Tax paid (3.3) (5.3) Production free cash flow 21.7 (35.8) FY15 Production Financing Bridge Production Financing Reconciliation m Production Financing as at 31 March 2016 118.0 ( 89.3m) 21.7m ( 49.0m) ( 1.4m) ( 118.0m) Covered by: Tax credits 67.3 Committed sales 45.5 eone 5.2 118.0 FY15 Production Financing Production Free Cash Flow Acquired Production Financing Other FY16 Production Financing
Outlook for FY17 2017 Assumptions Television FY16 FY17 Investment in productions, eone Television 73.3 million 110.0 million Investment in acquired content rights, eone Television 18.5 million 30.0 million Investment in productions, The Mark Gordon Company 7.6 million 100.0 million Half hours produced/acquired rights, eone Television 998 1,100 Half hours produced, The Mark Gordon Company 75 Family FY16 FY17 Investment in productions 4.2 million 2.0 million Investment in acquired content rights 1.6 million 2.0 million Film FY16 FY17 Investment in acquired content rights 98.3 million 160.0 million Investment in productions 11.9 million 70.0 million No. of theatrical releases 210 220 FY16 FY17 Adjusted net finance charges 20.6 million 25.0 million Adjusted effective tax rate 22.6% 23.0% Amortisation of acquired intangibles 27.4 million 33.0 million One-off items 16.6 million 5-10 million Net debt leverage: Group EBITDA 1.4x <1.1x
3 Strategic update Darren Throop
Strategic overview Business model Source Contractual relationships with quality producers and talent to develop content with global appeal Select Portfolio approach to produce or acquire content across Television, Family, Film and Music Sell Global rights sales infrastructure selling quality content across all media platforms Results for the year ended 31 March 2016 Strategic priority Develop deeper partnerships with top content producers and talent Strategic priority Build the world s leading independent content rights sales business
Six key drivers of strategic growth Strategic priority Television Family Film Content rights 1 3 5 Develop deeper partnerships with top content producers and talent Build a global television business Make Peppa Pig the most loved pre-school brand Create partnerships with premium film-makers Global sales 2 4 6 Build the world s leading independent content rights sales business Maximise eone s global television sales network Develop a portfolio of global family brands Maximise scale and efficiency in film distribution Goal Double size of the business over five years to FY20
1 A global television business Television Scripted Key growth driver Strategic progress Status Scripted Increased production volumes through Key high profile scripted dramas renewed and new productions commissioned in both eone Television and MGC Cardinal Private Eyes Ransom Strong development slate in place for further production opportunities Increased profile in US/UK/ Australia Television Non scripted Non-scripted Increased production volumes through Key shows renewed and new productions commissioned across production opportunities Keeping Canada Alive First Dates Klondike Trappers Renegade 83 brings further critical mass to the Group's non-scripted business Naked and Afraid
1 Building a global television business Development pipeline Development Focus on: Source Co Production deals First Look Overhead Options Output deals Extending development opportunities in USA, Canada, UK and Australia for scripted/ non-scripted content Select Production Increasing production volume Sell Sales Own production underpinning opportunity to increase global sales
2 Maximise eone s global sales network eone Originals Third Party Key growth driver Strategic progress Status eone Originals Strong pipeline of shows across scripted and nonscripted from Group production business Designated Survivor Conviction Private Eyes Ransom Third Party AMC output shows performing well and recommissioned Fear the Walking Dead Into the Badlands Other acquisitions also performing strongly Great Barrier Reef Continued development of new relationships across US, Canada, UK and Australia
3 Making Peppa Pig the most loved pre-school brand Substantial growth still to come Now By FY20 Opportunity markets Early development markets Developing markets Mature markets Limited market size / sophistication Cultural challenges Future growth option beyond FY20 Significant growth beyond FY20 Powering short term growth Stable retail presence Not factored into growth plans No anticipated future growth
3 Making Peppa Pig the most loved pre-school brand Significant progress during the year CAGR: 15% 2bn by 2020 Key growth driver Strategic progress Status Acquisition of 70% of ABD Brings control of the Peppa Pig brand to eone Interest over time (indexed) 1bn FY15 FY16 FY17 FY18 FY19 FY20 Opportunity markets (CAGR: 1-5%) Early development markets (CAGR: 10-20%) Development markets (CAGR: 30-50%) Mature markets (CAGR: 1-5%) 100 80 60 40 20 0 05/01/14 05/01/15 05/01/16 New broadcast territories launched Building audience on CCTV in China Japan launch anticipated in FY17 Digital audiences growing Significant global YouTube presence Licensing & merchandising drive revenues Youku and iqiyi in China delivering over 250 million monthly views US$1.1 billion in retail sales in FY16 and growing Over 750 live L&M deals Wide US retail roll-out in FY16 France, SE Asia retail focus in FY17 New series in production 52 new episodes refresh content New characters drive future licensing Peppa Pig Mickey Mouse Hello Kitty Thomas and Friends Angry Birds
4 Develop a portfolio of global family brands New brands performing strongly PJ Masks Strong launch in FY16 on Disney channels, with 29% audience share among 2-5 year olds PJ Masks will be rolled out to approximately 30 international Disney channels in FY17 US master toy licensee signed, retail launch in September 2016 Ben & Holly's Little Kingdom Television slots continue to rate well with audiences Consolidating presence in Australia, Spain and Italy after recent launch Broadcast agreement with Nick Jr in US Development brands Production on Winston Steinburger & Sir Dudley Ding Dong continues, to be completed in June 2016, will air initially in Australia and Canada New shows being developed with broadcasters attached: Bobby and the Bike Buddies, Cupcake and Dinosaur
5 Building partnerships with premium film makers Reduce reliance on output deals and full price single picture acquisitions Optimising the film slate composition Key growth driver Strategic progress Status Access to premium content across eone territories Investment in Amblin Partners makes eone distributor of choice with this renowned producer eone can share in global success through overage participations c80% c20% FY16 Increased global scale and footprint Acquisition of Sierra Pictures brings eone access to global sales and premium content for eone territories Reduce reliance on single picture acquisitions and output deals Focus on increasing slate of eone Productions, local acquisitions and strategic investments Increased editorial control and access to wholesale pricing Increased slate within eone Production including Eye in the Sky Molly's Game Villa Capri FY20 c40% c60% Local production leveraging relationships with local producers to source high quality content Good progress in building local slate UK examples include David Brent: Life on the Road Stan & Ollie
6 Maximise scale and efficiency in independent film distribution Key growth driver Strategic progress Status Build new strategic partnerships to extend global footprint Sierra Pictures brings enhanced international sales capability and leverage of broad third party slate Drive operational efficiency of distribution network through scale and partnerships Restructuring of eone Home Entertainment 20th Century Fox and Sony Pictures now manage sales/ distribution of eone titles Film wide restructuring programme to drive 10 million of annualised cost savings by FY18 Global media buying leverages scale to reduce costs and improve programming quality Centralise back office functions across territories
Digital capabilities embedded for the future Digital content platform relationships Strong relationships with leading OTT and SVOD platforms Multi-channel presence growing Family brands have substantial presence on YouTube Traction building on other multi-channel networks: Youku, iqiyi (China s largest online video site) Secret Location Award-winning virtual reality content production Presence on emerging platforms such as Oculus Rift Online content production projects: Insomnia, Sweat the City, DitchTV and Whatever, Linda
Bringing the best content to the world in FY17 Confident outlook for the year Strong momentum in eone Television The Mark Gordon Company delivering multiple new series as a production studio Growth in Family: Peppa Pig and new brands Revenue growth in Film with strong slate and improved operating efficiency eone well-positioned to benefit from long-term industry drivers
Q&A
Appendix
Group Revenue and EBITDA Profile Revenue 2016 Revenue 2015 28% 22% 64% 803m 786m 8% 71% 7% EBITDA 2016 EBITDA 2015 29% 15% 39% 129m 107m 64% 21% 32% Television Family FIlm
Pro-forma 7 analysis Revenue m FY16 FY15 Change Television 274.2 222.9 23.0% eone Television 210.8 155.0 36.0% The Mark Gordon Company 17.9 22.2 (19.4%) Music 45.5 45.7 (0.4%) Family 66.6 60.8 9.5% Film 574.5 581.0 (1.1%) Total Divisional Revenue 915.3 864.7 5.9% Eliminations (62.0) (56.5) 9.7% Total Group Revenue 853.3 808.2 5.6% EBITDA m FY16 FY15 Change Television 41.1 37.3 10.2% eone TV 26.4 17.3 52.6% The Mark Gordon Company 12.2 17.6 (30.7%) Music 2.5 2.4 4.2% Family 46.6 40.9 13.9% Film 55.1 71.4 (22.8%) Total Divisional EBITDA 142.8 149.6 (4.5%) Centre (6.2) (7.4) 16.2% Group EBITDA 136.6 142.2 (3.9%) EBITDA Margin % 16.0% 17.6% (1.6%)
Reconciliation between FY16 reported and adjusted earnings m Reported Adjustments Adjusted Underlying EBITDA 129.1 129.1 Amortisation of acquired intangibles (27.4) 27.4 Depreciation/amortisation (4.4) (4.4) Share-based payment charge (4.1) 4.1 One-off items (16.6) 16.6 Tax, finance costs & depreciation related to joint ventures (1.6) 1.6 Net finance charges (27.1) 6.5 (20.6) Profit before tax 47.9 56.2 104.1 Tax (7.7) (16.8) (24.5) Profit after tax 40.2 39.4 79.6 Less: Non-controlling interests (3.7) (2.4) (6.1) Earnings 36.5 37.0 73.5 Diluted earnings per share (p) 9.6 9.8 19.4
Reconciliation between FY15 reported and adjusted earnings m Reported Adjustments Adjusted Underlying EBITDA 107.3 107.3 Amortisation of acquired intangibles (22.2) 22.2 Depreciation/amortisation (3.7) (3.7) Share-based payment charge (3.4) 3.4 One-off items (17.9) 17.9 Tax, finance costs & depreciation related to joint ventures 0.1 (0.1) Net finance charges (16.2) 1.4 (14.8) Profit before tax 44.0 44.8 88.8 Tax (2.7) (17.3) (20.0) Profit after tax 41.3 27.5 68.8 Less: Non-controlling interests 0.5 0.5 Earnings 41.8 27.5 69.3 Diluted earnings per share (p) 12.5 8.3 20.8
Finance Charges m FY16 FY15 285m Senior Secured Notes at 6.875% (6.0) Interest on bank loans and overdrafts (10.4) (10.5) Financing costs directly attributable to bonds and loans (16.4) (10.5) Amortisation of deferred finance charges (2.2) (1.9) Other net financing costs (8.5) (3.8) Net financing costs (27.1) (16.2) Comprised of: Adjusted net finance costs One-off net finance costs (20.6) (14.8) (6.5) (1.4)
Analysis of net debt and cash m FY16 FY15 285m Senior Secured Notes at 6.875% (285.0) Bank borrowings (275.8) Cash 94.7 43.7 Deferred finance charges 9.5 7.2 Net debt (180.8) (224.9)
Tax Charge m FY16 FY15 Profit before tax 47.9 44.0 Amortisation of acquired intangibles 27.4 22.2 Share-based payment charge 4.1 3.4 One-off items 16.6 17.9 One-off net finance charges 6.5 1.4 Tax, finance costs and depreciation related to joint ventures 1.6 (0.1) Profit before tax relating to joint ventures (5.0) Adjusted profit before tax (excluding joint ventures) 99.1 88.8 Profit before tax relating to joint ventures 5.0 Adjusted profit before tax (including joint ventures) 104.1 88.8 Income tax charge (7.7) (2.7) Amortisation of acquired intangibles (5.0) (3.9) Share-based payment charge (0.2) One-off items (2.5) (1.3) One-off net finance charges (0.6) (0.1) Prior year current tax and deferred tax adjustments (4.9) (2.3) Other non-recurring tax items (1.7) (9.5) Adjusted tax charge on adjusted profit before tax (excluding joint ventures) (22.4) (20.0) Adjusted effective tax rate 22.6% 22.6% Joint venture underlying tax charge (2.1) Adjusted tax charge on adjusted profit before tax (including joint ventures) (24.5) (20.0)