Ascential : Annual Results 2021

2 March 2022

Ascential plc

Audited results for the year ended 31 December 2021

Structural growth underpins Digital Commerce

Strong delivery across the Company with proforma revenue growth of 48%

London: Ascential plc (LSE: ASCL.L), the specialist information, analytics and eCommerce optimisation company, today announces results for the year ended 31 December 2021.

Duncan Painter, Chief Executive Officer, commented:

"Ascential's agility has been key to its successful transformation over the past seven years, maximising opportunities across the Company and driving value from our rapidly growing digital commerce products. This formula has helped shape our strong performance in 2021, driven by market-leading products, structural digital growth trends and strong operational execution. The pandemic has stress tested many companies' business models and I am delighted to see how well all ours have performed. This would not have been possible without the resilience, creativity and commitment of our people, who I would like to thank.

As we look forward, our top priority remains the acceleration of our Digital Commerce strategy, our largest structural growth engine that has a rare and significant growth opportunity.

2022 has started well. Digital Commerce and Product Design look set to deliver excellent levels of growth in the coming year, with Digital Commerce expected to make strong progress against its medium-term financial goals.

We expect to see a recovery in Marketing and Retail & Financial Services over the coming years as we continue to successfully navigate the ongoing impacts of the pandemic. Although Covid-19 is likely to continue to present challenges to our event products, the return of Money20/20 US has demonstrated that we can swiftly achieve full financial recovery.

The Board is confident about our prospects for future success."

Performance highlights

• Strong delivery against our plans and expectations reflecting successful strategic positioning, boosted by the first year of a cyclical recovery.
• Structural digital growth trends,market-leading positions and strong operational execution drove progress in both Digital Commerce (revenue up 33% on a proforma basis) and Product Design (up 7% on an organic basis, with subscription billings up 10%).
• Robust return of the Lions awards benchmark, held fully digitally in response to priorCovid-related travel restrictions, with the physical Cannes Lions festival scheduled to return in 2022.
• Strong return of Money20/20 particularly the US edition in October 2021 which delivered 98% of the 2019 revenue level, with further upside expected as more major clients return.

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• Continued execution of M&A strategy: seven acquisitions added to our Digital Commerce capabilities and their expanded relevance to the total addressable market. Funded through disciplined portfolio management, such as the disposal of Built Environment & Policy and MediaLink supplemented by a successful equity placing.
• Commitment to diversity and governance reflected in our Board composition: 64% women and 18% of Board members ethnically diverse, exceeding the targets set by theHampton-Alexander review (on gender) and Parker review (on ethnic diversity).

Financial highlights1

• Results ahead of market expectations.
• Revenue of £349.3m (2020: £229.9m)

• 1. Reported revenue growth up 52% (organic: 44%, proforma: 48%).
  1. Digital Commerce revenue up 33% proforma.
  1. Product Design growth innon-fashion products up 30%.
• Adjusted EBITDA of £88.9m (2020: £21.7m).
• 1. Margin 25.5% (2020: 9.4%).
• Reported continuing operating loss of £26.7m (2020: loss of £171.3m).
• Strong recovery in adjusted diluted EPS from continuing operations to 9.5p (2020: loss per share of 3.1p). Growth in total reported EPS to 53.5p reflects profit on disposal of MediaLink andnon-core Built Environment & Policy segment (2020: loss of 35.0p).
• Strong cash generation
• 1. Operating cash flow conversion of 95% (2020: 79%).

1. Disposal proceeds of £342.4m and the £150.2m equity placing fundingin-year acquisitions, investments and deferred contingent consideration of £373.6m.

• 1. Reduced net debt of £73.8m (2020: £229.3m) or 0.9x EBITDA at 31 December 2021.
• The Board continues to prioritise capital for investment and acquisitions to support our growth strategy and has decided not to declare a full year dividend at this time. The Board will keep capital allocation priorities, including shareholder cash returns, continually under review.

12020 restated to reflect discontinuance of MediaLink and the Built Environment & Policy segment and the new IFRIC interpretation of IAS38.

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Contacts
Ascential plc
Duncan Painter	Chief Executive Officer	[phone]
Mandy Gradden	Chief Financial Officer
Rory Elliott	Investor Relations Director
Media enquiries
Edward Bridges	FTI Consulting LLP	[phone]
Matt Dixon
Jamie Ricketts

Ascential will host a presentation for analysts and investors at 9.00am on Wednesday 2 March 2022 at The London Stock Exchange at 10 Paternoster Square, London, EC4M 7LS together with a live webcast on www.ascential.com. A recording will also be available on-demand from our website in due course.

About Ascential

Ascential delivers specialist information, analytics and eCommerce optimisation platforms to the world's leading consumer brands and their ecosystems. Our world-class businesses improve performance and solve problems for our customers by delivering immediately actionable information combined with visionary longer-term thinking across Digital Commerce, Product Design and Marketing. We also serve customers across Retail & Financial Services.

• Digital Commerce- measurement, optimisation and execution for digital commerce growth.
• Product Design- consumer product trend forecasting, data and insight to create world-class products and experiences.
• Marketing- services and tools to measure and optimise marketing creativity, media and platform effectiveness and efficiency.

With more than 2,800 employees across five continents, we combine local expertise with a global footprint for clients in over 120 countries. Ascential is listed on the London Stock Exchange.

Cautionary statement

Certain statements in this announcement constitute, or may be deemed to constitute, forward-looking statements, projections and information (including beliefs or opinions) relating to the Company and its subsidiaries and subsidiary undertakings (the "Group") that are based on knowledge and information available to the Company at the date of preparation of this announcement. Any statement in this announcement that is not a statement of historical fact including, without limitation those regarding the Company's future expectations, operations, financial performance, financial condition and business are, or may be deemed to be, forward-looking statements. Such forward looking statements are subject to risks, uncertainties and assumptions that may cause actual performance, outcomes and results to differ materially from those expressed or implied in this announcement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events stated or implied in this announcement. All forward-looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. As a result, you are cautioned not to place reliance on such forward-looking statements. Except as is required by the Listing Rules, Disclosure and Transparency Rules and applicable laws, no undertaking is given to update, revise or correct the forward-looking statements contained in this announcement, whether as a result of new information, future events or otherwise.

This announcement has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Ascential plc and its subsidiary undertakings when viewed as a whole.

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Financial highlights - continuing operations

	31 December		2021 Growth
	2021	20201	Reported	Organic	Proforma
			%	%2	%2
	£'m	£'m
Revenue
Digital Commerce	147.3	103.1	43%	19%	33%
Product Design	91.3	88.1	4%	7%	7%
Marketing	56.5	20.5	175%	188%	188%
Retail & Financial Services	54.2	18.2	198%	205%	205%
	349.3	229.9	52%	44%	48%
Adjusted EBITDA2
Digital Commerce	31.1	22.6	37%	17%	32%
Product Design	41.3	38.0	9%	13%	13%
Marketing	25.6	(6.5)	nm	nm	nm
Retail & Financial Services	10.9	(14.3)	nm	nm	nm
Corporate Costs3	(20.0)	(18.1)	(10%)	(5%)	(5%)
	88.9	21.7	311%	323%	248%
Group EBITDA Margin (%)	25.5%	9.4%
Adjusted operating profit2	69.4	1.2
Operating (loss) / profit	(26.7)	(171.3)
Loss before tax	(39.6)	(189.1)
Adjusted diluted continuing earnings	9.5 p	(3.1p)
per share (pence)2
Adjusted cash generated from	84.0	17.1
operations2
Operating cash flow conversion2(%)	95%	79%
Net debt 2	73.8	229.3

1. Restated to reflect discontinuance of MediaLink and the Built Environment & Policy segment and the new IFRIC interpretation of IAS 38.
2. Refer to the glossary of Alternative Performance Measures below.
3. Including stranded overhead costs following the MediaLink disposal of £1.3m (2020: £1.2m).

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Revenue by type - continuing operations

	2021	20201	20191	2021
				Proforma
				Growth2
	£'m	£'m	£'m	%
Digital Subscriptions & Platforms	136.2	95.6	72.0	32%
Advisory	11.1	7.5	6.1	46%
Digital Commerce segment	147.3	103.1	78.1	33%
Digital Subscriptions & Platforms	81.9	81.3	78.4	4%
Advisory	9.4	6.8	7.3	42%
Product Design segment	91.3	88.1	85.7	7%
Digital Subscriptions & Platforms	18.2	17.0	15.8	11%
Advisory	3.7	1.2	1.6	211%
Benchmarking Awards	29.3	1.0	29.2	nm
Events	5.3	1.3	42.4	320%
Marketing segment	56.5	20.5	89.0	188%
Digital Subscriptions & Platforms	10.8	14.3	14.8	(23%)
Advisory	2.7	2.2	2.2	24%
Events	40.7	1.7	64.1	nm
Retail & Financial Services segment	54.2	18.2	81.1	205%
Events	-	-	(0.1)	-
Intersegment Sales	-	-	(0.1)	-
Digital Subscriptions & Platforms	247.1	208.2	181.0	18%
Advisory	26.9	17.7	17.2	55%
Benchmarking Awards	29.3	1.0	29.2	nm
Events	46.0	3.0	106.4	nm
Total Revenue	349.3	229.9	333.8	48%

1. Restated to reflect discontinuance of MediaLink and the Built Environment & Policy segment.
2. Refer to the glossary of Alternative Performance Measures below.

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