The Future Network plc
Annual Report 2002 The Future Network plc is focused on 
magazines. Driven by innovation, Future’s
magazines are clearly targeted at specialist
consumer sectors, where readers require a
narrow range of information deep in content 
and authority.
Many of our magazines have great international
appeal. All have a deep connection with readers.
In addition, Future is the worldwide leader in
computer games magazines.
Our business of publishing a portfolio of
specialist consumer magazines has been 
able to expand profitably and we plan to 
make further progress in 2003.
01 Highlights
02 Group at a glance
04 Chairman’ s statement
06 Chief Executive’ s review
10 Operating and financial review
22 Board of Directors 
24 Directors’ report 
27 Remuneration report
33 Corporate governance report
36 Independent auditors’ report
37 Financial statements
Definitions
Adjusted operating profit: operating profit before amortisation and impairment 
of intangible assets, other operating income and refinancing costs. 
Adjusted basic earnings: earnings before amortisation and impairment
of intangible assets, other operating income and refinancing costs.
ABC: Audit Bureau of Circulations Our Portfolio
at December 2002
UK – Future
Publishing
Future Network
USA
Future France
UK – FXM
International
Future Media
Italy Highlights
1 The Future Network plc Annual Report 2002 
Financial highlights
• Turnover from continuing activities up 16% to 
£165.3m (2001: £142.9m)
• Adjusted operating profit from continuing activities 
up 82% to £18.2m (2001: £10.0m)
• Other operating income £2.2m (2001: Nil)
• Amortisation charge £10.3m (2001: £120.6m 
including impairment write-downs)
• Pre-tax profit £10.7m (2001: pre-tax loss £121.0m)
• Net cash balances of £16.8m (2001: net debt of £7.8m)
Operational highlights
• Circulation revenue up 22%, advertising revenue up 7%
• 13 magazines launched during year, performing profitably in aggregate
• Strong performance in second half year confirms seasonal trend
• Proposed £3.5m acquisition of four magazines in France from Hachette
• Recent trading performance encouraging
• Two new non-executive appointments to the Board from 12 March 2003
2002 £111.9m 
2001* £91.9m 
Circulation revenue up 22% Advertising revenue up 7% Revenue up 16%
2002 £48.6m 
2001* £45.5m 
2002 £165.3m 
2001* £142.9m 
*Continuing business 2001
Adjusted operating profit up 82%
2002 £18.2m 
2001* £10.0m  2 The Future Network plc Annual Report 2002 
Group at a glance
• June 1985 Future Publishing is founded with
its first magazine Amstrad Action. 
• 1987 PC Plus is the first British magazine 
to mount a computer diskette onto its cover
every month. 
• 1989 Future becomes Britain’ s leading
publisher of newsstand computer magazines
by the end of the year. 
• 1991 Future launches seven magazines
and acquires Mountain Biking UK. 
• 1993 Future buys US company GP Publications
(later Imagine Media, now Future Network USA).
• 1994 Future is sold to Pearson New
Entertainment. As part of the agreement 
GP Publications reverts to a private company,
it is renamed Imagine Media. 
• 1995 Future is awarded the licence by Sony
Computer Entertainment UK to publish the
Official UK PlayStation Magazine.
• 1996 Pearson New Entertainment acquires
Paris-based magazine publisher, Edicorp
Publications (now Future France). 
• 1996 Future acquires Music Maker
Publications in the UK. 
• 1998 Pearson completes the sale of Future
Publishing and Edicorp to a company buyout
backed by venture capitalists Apax Partners.
Greg Ingham is appointed Chief Executive. 
• 1999 Future buys the Italian market-leading
publisher of computer games magazines,
Il Mio Castello Editore (now Future Media Italy). 
• 1999 Future acquires Imagine Media,
(now Future Network USA), the publisher 
of computer games and computing magazines
and new economy title Business 2.0. 
• June 1999 Future floats on the London
Stock Exchange. The new plc is called 
The Future Network plc (symbol: FNET). 
• 2000 Future’ s UK business is 
awarded the licence by Sony Computer
Entertainment UK to publish the Official
PlayStation 2 Magazine.
• 2000 Future’ s US business wins the
exclusive international Microsoft Xbox
magazine licence. It covers all territories
worldwide except Japan. 
• February 2001 Following a strategic review
of the worldwide business Future announces
measures which are designed to streamline
the Group’ s portfolio, reduce operating costs
and pay down debt. 
• May 2001 UK subsidiary Future Publishing
announces the restructuring of its operations
into three distinct divisions. 
• July 2001 Business 2.0 magazine is sold 
to AOL Time Warner for £47m. 
• Sept 2001 Future announces a proposed
refinancing of the company through a 6 for 5
Rights Issue. 
• October 2001 Future’ s US subsidiary,
launches the American version of the Official
Xbox Magazine.
• November 2001 The Rights Issue 
raises £33.5m.
• January 2002 FXM International is
established to focus on the development 
of Future’ s Xbox magazines outside the US.
• May 2002 Bank debt repaid.
• September 2002 At its Interim Results for
2002 Future reports a modest profit and that
all four of its businesses performed better in
the first half of 2002 compared with the same
period in 2001.
Export:
Australia
Brazil
China
Croatia
Czech Republic
Denmark
Germany
Greece
Hong Kong
Hungary
Indonesia
Israel
Korea
Malaysia
Mexico
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovenia
South Africa
Spain
Sweden
Thailand
Ukraine
The Future
Network
companies:
UK
USA
France
Italy
Licensing: local editions 
in a further 27 countries
82 magazines
4 countries
934 employees
27 computer games titles
30 computing titles
25 other specialist titles
Top 10 most 
licensed titles:
Our history:
Key:
The Future Network companies
Licensed editions in these countries
T3
PC Format
PSM2
PC Gamer
Computer Arts
PC Plus
Official PlayStation 2 
Magazine
Official Xbox Magazine
Digital Camera 
Magazine
Home Entertainment
Magazines
exported to 
67 countries
T otal number 
of magazines 
sold by export 
in 2002: 2.8m 3 The Future Network plc Annual Report 2002 
France – Future France
Sari Zaimi
Managing Director
Magazines sold each month average:
0.54m
Key facts
• Monthly magazines at 31 Dec: 13
• People: 141 
Best-selling titles
Windows News – launched Jan 1993
PC Achat – launched Jan 1996
Jeux Video Magazine – launched 
Jun 2000
PC Jeux – launched Jan 1997
Nintendo Le Magazine Officiel –
launched April 2002
New monthly launches in 2002
Microsoft Windows XP: Le Magazine
Officiel
Nintendo Le Magazine Officiel
Xbox Magazine Officiel
USA – Future Network USA
Jonathan Simpson-Bint
Managing Director
Magazines sold each month average:
1.53m
Key facts
• Monthly magazines at 31 Dec: 5
• People: 99 
Best-selling titles
PSM – launched Jan 1997
PC Gamer – launched Dec 1995
Maximum PC – launched Jan 1996
Official Xbox Magazine – launched 
Oct 2001
MacAddict – launched Jan 1996
Italy – Future Media Italy
Bernardo Notarangelo
Managing Director
Magazines sold each month average:
0.27m
Key facts
• Monthly magazines at 31 Dec: 10
• People: 79 
Best-selling titles
Giochi per il Mio Computer – launched
Jan 1997
Computer Magazine – launched 
Jan 1997
Il Mio Computer – launched Jan 1996
PSM – launched Jan 2001
New monthly launches in 2002
Nintendo – La Rivista Ufficiale
Xbox Magazine Ufficiale
Play Nation Magazine Indipendente
UK – Future Publishing
Colin Morrison
Chief Operating Officer
and Managing Director UK
Magazines sold each month average:
1.94m
Key facts
• Monthly magazines at 31 Dec: 54
• People: 615 
Best-selling titles
Official PlayStation 2 Magazine –
launched Nov 2000
Total Film – launched Feb 1997
PC Gamer – launched Dec 1993
Cross Stitcher – launched Oct 1992
PC Plus – launched Oct 1986
PSM2 – launched Sept 2000
Redline – launched May 1998
GamesMaster – launched March 1993
PC Format – launched Oct 1991
Official UK Xbox Magazine – launched
Feb 2002
New monthly launches in 2002
Complete Guide Series
Digital Camera Magazine
Microsoft Windows XP: 
The Official Magazine
Official PlayStation 2 Tips Magazine
Official UK Xbox Magazine*
Xbox Gamer*
Das Offizielle Xbox Magazin* 
(in Germany)
*published by FXM International
Newsstand 25% 
Subscriptions 75% 
USA – Volume of magazines sold by:
Newsstand 98% 
Subscriptions 2% 
Italy – Volume of magazines sold by:
Newsstand 84% 
Subscriptions 16% 
France – Volume of magazines sold by:
Newsstand 86% 
Subscriptions 14% 
UK – Volume of magazines sold by: Chairman’s
statement
4 The Future Network plc Annual Report 2002 
Summary
Publishing magazines can be
successful as a business only if a
company is fortunate enough to 
have skilled and motivated people.
I am pleased to report to you that 
The Future Network has been very
successful in 2002 because of the
efforts of a talented and dedicated
staff. It is the ability and enthusiasm 
of almost a thousand people which
creates the success of our business.
Financial results
I am delighted to report that Group
turnover from continuing activities 
rose by 16% to £165.3m; profit 
before tax amounted to £10.7m in
comparison with losses in 2000 and
2001; and basic earnings per share
arose for the first time, amounting to
1.9 pence per share. 
Future was able to pay off all bank 
debt during 2002 and the Group ended
the year with net cash of £16.8m.
2002 was a very difficult year for most
media companies, particularly those
which rely on display advertising as 
a major part of their income. Against
this background, it is very pleasing to
report that The Future Network was one
of the best performing media shares in
Europe according to the brokerage firm
UBS Warburg.
Business activities
Our business of publishing a portfolio
of specialist consumer magazines has
been able to expand profitably and we
plan to make further progress in 2003.
At the end of 2002, Future published
more than 82 magazines in four
countries: the UK, US, France and 
Italy; with international licensing 
of many of our titles in 27 other
countries. The current portfolio is
focused around computer games,
computing and other specialist titles.
Board and corporate governance
Two non-executive Directors resigned
during 2002 in order to spend 
more time on their other business
interests. On 29 May we announced
the resignation of Elisabeth Murdoch
and on 25 September, the resignation
of Brendan Clouston. I am grateful to
both for their contributions over two
and three years respectively. 
At the end of last year, the Board as a
whole agreed that, while the balance of
non-executive and executive Directors
was satisfactory, it would be desirable
in due course to appoint at least one
more non-executive Director. I am
therefore very pleased that we are 
able to announce the appointment 
of John Mellon, the former Chairman 
of IPC Magazines and member of the
Executive Committee of Reed Elsevier;
and Lisa Gordon, the former Corporate 
Development Director of Chrysalis
Group, who both join the Board on
12 March 2003 as independent
non-executive Directors.
As a Board we are strongly focused 
on corporate governance issues,
which we believe can help both the
health and wealth of media companies.
It is my intention to ensure that Future
continues to have a good balance
between executive and non-executive
Directors and I welcome comments
from shareholders on this or any 
other corporate governance issues.
During the last year , we took a 
number of steps to strengthen 
Group management and control and 
our corporate governance report
explains these. 
In September, we appointed Mark Millar
as our new full-time Company Secretary
and Head of Legal. Mark is a solicitor
who joined us from one of the leading
international law firms, Allen & Overy.
He has a wide range of UK and
international commercial and corporate
finance experience, gained over a
10-year legal career in the City. 
Annual General Meeting
This year, our AGM will be held on
15 May and the business for that
meeting will include two significant 
new proposals. I will be writing to you
Roger Parry Chairman
Future is now well 
positioned – strategically,
managerially and financially 5 The Future Network plc Annual Report 2002 
separately with full details of our
proposals, which include the following
special business.
First, the Board has decided that it would
be appropriate to propose a reduction
of the Company’ s share premium
account in order to eliminate the
accumulated deficit on the Company’ s
profit and loss account. This step will
pave the way to enable the payment 
of dividends in due course.
Secondly, we propose to introduce 
a Long-Term Incentive Plan in order 
to align the interests of executive
Directors and senior management 
with those of shareholders generally. 
I signalled that we were considering
this matter when I wrote to shareholders
in April 2002, and the proposals we are
putting forward for this year’ s AGM are,
we believe, in the best interests of
shareholders and the Company.
Current trading and prospects
Current trading for 2003 has been
encouraging. I would remind shareholders
that Future has historically shown
much stronger trading in the second
half of the calendar year. 
It is also clear that our success in 
2003 will be affected by the general
economic climate, which at present 
is overshadowed by much international
uncertainty. 
Circulation revenue now accounts 
for 68% of Group turnover and is
expected to show growth in 2003. 
We expect advertising income to 
be flat this year. 
Future is now well positioned –
strategically, managerially and
financially. It is a successful specialist
consumer magazine publisher. I am
optimistic that our shareholders’
confidence in Future will continue to
prove justified in the years to come.
Roger Parry Chairman
11 March 2003 6 The Future Network plc Annual Report 2002 
Chief Executive’ s
review
Overview of continuing business
We began 2002 with a more focused
Group and in a much stronger position
than 2001. This enabled the Group 
to concentrate on what it does best –
publishing and launching specialist
consumer magazines. Each of our four
businesses in the UK, US, France and
Italy improved in 2002. 
Business activities
Our diverse portfolio of 82 specialist
consumer magazines is focused around
computer games, computing and other
specialist sectors and it is worth
commenting on these before considering
their progress geographically.
Computer games
In 2002, 45% of revenues derived 
from computer games magazines,
a sector which has been growing
strongly. The computer games sector
is estimated to have had worldwide
hardware and software sales of 
$27bn in 2002. The larger players in
this market are Sony, Microsoft and
Nintendo, with combined sales of their
latest games consoles (PlayStation 2,
Xbox and GameCube) of an estimated
60 million since their products were
launched over the last two years or so.
Future is the worldwide leader in
computer games magazines, with
2002 revenues of £76m and monthly
average sales of owned and licensed
magazines of some 2.5 million. We
have Official magazine relationships
with Sony (UK); with Microsoft
(worldwide Official Xbox magazine
rights, excluding Japan); and Nintendo
(France and Italy). Additionally, we have
a strong portfolio of unofficial titles,
including the world’ s biggest-selling 
PC games magazine, PC Gamer.
Future’ s Official magazines benefit from
a close relationship with the console
manufacturers, though Future retains
full editorial control. PlayStation 2 and
Xbox Official magazines also feature
an exclusive disc of playable game
demos. The detailed financial terms 
of our Official magazine relationships
are not disclosed but usually represent
a form of royalty payable in relation to
numbers of magazines sold. 
During the year, Future strengthened
its worldwide leading position, with
gains in market share in the UK, US
and France. We have launched the
Official Xbox Magazine in our four
countries and licensed it in a further
three. We have announced that subject
to regulatory approval, we have agreed
to acquire three computer games
magazines from Hachette in France.
Computing
Computing titles provided 33% of our
2002 magazine revenues. Future is 
a significant publisher of computing
magazines in its four territories, with
2002 revenues of £54m. In 2002 
the computing sector continued to
experience difficult market conditions.
This has been more pronounced in the
business and professional sector than
in the consumer PC sector where
Future largely operates. 
Against this background, we feel that
our performance has been relatively
robust: our total computing revenue
increase was 2%. This was driven by an
entrepreneurial determination to seek
out new revenue streams, including
launches, and to take market share. 
Chief amongst the launches was
Microsoft Windows XP: The Official
Magazine, which we published from
January under an agreement with
Microsoft in the UK, quite separate from
our Xbox relationship. Later in 2002,
we launched this successfully in France.
Other specialist titles
These titles are published in the 
UK, and also represent a very
significant, and growing, part of 
our licensed portfolio. These other
specialist titles provided 22% of 
Group 2002 magazine revenues.
These titles are published by our
Entertainment division, which is
responsible for about half of the 
UK’ s 54 titles. The division covers
Greg Ingham Chief Executive
Each of our four businesses 
in the UK, US, France and Italy
improved in 2002
Computer
games 45%
Other specialist 22%
Computing 33%
Revenue by sector 2002
Computer 
games 38% 
Other specialist 25%
Computing 37%
Revenue by sector 2001*
*Continuing
business 2001 7 The Future Network plc Annual Report 2002 
10 separate sub-sectors, including
technology, music and music-making,
film, mountain-biking, stitching, football,
and motoring. The majority of these
sub-sectors are aimed at young male
readers, and Future holds leading
positions in several of them.
Review of business by territory
UK performance
Our UK business remains by far the
largest of Future’s operations and
provides much of the original editorial
material which is used in our licensing
activities and also by our mainland
European subsidiaries. The business
returned to launching new magazines
in 2002, and increased revenues and
improved profitability.
The UK business is the heart of 
Future, representing 58% of the
Group’ s continuing revenues and 
the clear majority of its profits. 
It publishes 54 magazines and
employs just over 600 staff. It is 
also the most diversified business
within the Group, covering computer
games (13 magazines), computing 
(16 magazines), and entertainment
(25 magazines). Continuing revenue
split: 72% circulation, 23% advertising,
5% other (primarily licensing). By
sector, the revenue split is: computer
games (34%), computing (29%) and
entertainment (other specialist) (37%).
The UK business (Future Publishing
and the smaller Xbox magazine
publishing business FXM International)
increased adjusted operating profits
from £13.3m to £16.7m and increased
margins from 15% to 17% in terms 
of adjusted operating profit as a
percentage of turnover.
Overall computer games magazines
sales, including launches, increased 
by 23% year-on-year to 690,000 
copies per month. Future’ s share 
of the UK computer games magazine
market increased from 55% to 61%
year-on-year by volume and from 60%
to 67% by value. Future estimates it
gained more than three-quarters of 
the overall sector increase in copy
sales value during the year.
In computing, the launch of Microsoft
Windows XP: The Official Magazine
offset circulation declines elsewhere 
in the UK computing division, which
achieved an overall portfolio increase
in copy sales of over 5% year-on-year.
The Entertainment division (other
specialist) delivered a solid performance
overall – in particular the music titles,
where six out of our eight magazines
recorded year-on-year growth.
UK advertising revenue increased 
by 1% (advertising revenue compared
with continuing 2001 business). 
In addition to some impact from the
1. PC Gamer is the Group’ s biggest-selling
magazine. It is the market leader in the
US and the UK and is published in France
(PC Jeux) and Italy (Giochi per il Mio Computer).
2. The Group has published Official PlayStation
magazines since 1995. Overall Future’ s
share of the UK computer games magazine
market increased from 55% to 61%
year-on-year by volume.
3. PSM is an unofficial PlayStation magazine
that the Group sells in the US. It is the
biggest-selling PlayStation magazine of 
any type in the US.
12
3
Computer games –
strongly growing sector Chief Executive’ s
review continued
8 The Future Network plc Annual Report 2002 
well-documented general advertising
difficulties in 2002, we were also
affected by continuing toughness 
in technology-related advertising. 
The UK business includes high margin
revenues from licensing editorial
content to third parties and to Group
companies in France and Italy. In 2002,
third party licensing revenues for the
UK were £1.8m (2001: £2.3m) and
intra-Group, £1.2m (2001: £1.4m).
US performance
In the US we have seen dramatic
progress in our operations. This has
been led by a 24% revenue increase,
primarily due to the success of our
computer games magazines, and 
also by a much tighter management
focus on costs.
The US business represents 24% 
of the Group’ s continuing revenues,
publishing five magazines and
employing some 100 staff. The
business publishes computer 
games and computing magazines,
with revenues split: 49% circulation,
48% advertising, and 3% other.
I am grateful to Jonathan Simpson-
Bint, who became Managing Director
of Future Network USA during 2001
and who, together with his team very
ably led it to profitability in 2002. 
The adjusted operating profit margin 
of 11% reflects both the active
management of costs and an ability 
to take full advantage of the rising
games market. 
Future US gained market share in 
both computer games and computing
sectors in 2002. The portfolio had
growth of 25% and 21% in circulation
and advertising respectively. Future 
US now publishes the biggest-selling
PC games, PlayStation and Xbox
magazines in the US. The computing
magazine Maximum PC was the only
one in its sector in the US to show
growth in advertising pages in 2002
over 2001.
The October 2001 launch, Official Xbox
Magazine, performed well in 2002,
both on circulation and on advertising.
We increased its ratebase (guaranteed
copy sales to advertisers) from
250,000 to 325,000 copies sold per
month. This will be increased further 
in 2003 to 400,000.
Mainland Europe performance
Our European operations in France 
and Italy made progress in 2002. They
increased their revenues by 18%, but
have not yet reached the desired level
of profitability. We have strengthened
the management of both businesses.
Mainland Europe represents 18% 
of the Group’ s continuing revenues. 
We now publish 23 magazines in 
the computer games and computing
sectors, and employ around 220 
staff. Continuing revenue split: 
74% circulation, 26% advertising.
We were pleased to welcome in the
spring of 2002 Sari Zaimi and Bernardo
Notarangelo as Managing Directors of
our French and Italian businesses. They
have been effective in leading change.
Revenues in both France and Italy 
grew strongly during the year. On 
the cost side, expenditure arose 
in relation to the completion of 
our 2001 restructuring, and also 
in making selected changes in senior
management. The net impact on 2002
results of these changes was £0.7m.
Intra-Group licensing paid to other
Group companies amounted to 
£1.4m during the year (2001: £1.4m).
Our French business publishes
13 magazines and we have recently
agreed to purchase three computer
games titles and one other magazine
from the French company, Hachette.
The transaction is subject to regulatory
approval in France. If successful,
the proposed acquisition provides
added scale, helping us to build 
a better business in France. It is 
clear that, overall, our French and
Italian businesses have improved
compared with 2001 but work 
remains to be done.
Computer
games 29%
Other specialist 42%
Computing 29%
UK revenue by sector 2001*
Computer
games 34%
Other specialist 37%
Computing 29%
UK revenue by sector 2002
*Continuing business 2001 9 The Future Network plc Annual Report 2002 
Strategy
Our strategy is both to maximise 
our position within computer games
magazines, whilst at the same 
time broadening our overall 
magazine portfolio. 
Consistent with this strategy, in 2002
we launched a total of 13 magazines –
nine computer games magazines 
and four others. We have agreed to
acquire four magazines in France 
from Hachette, subject to regulatory
approval. We will launch several 
new titles this year, and may make
further acquisitions. 
Future employs a large number of
creative and commercial people,
and I am proud to have led the Group
through what has been a successful
year. I am grateful to our management
teams for harnessing the many 
talents which lie at the heart of 
this successful publishing Group. 
We are in good shape and look 
forward with confidence.
Greg Ingham Chief Executive Officer
11 March 2003
1. Official Xbox magazines were launched in
October 2001 (US), February 2002 (UK) and
March 2002 (France and Italy). During 2002
the Group licensed local editions in a further
three countries and also launched a German
language edition through a contract
publishing arrangement.
2. Launched in October 2002, Digital Camera
Magazine is already licensed in four 
other countries.
3. The launch of Microsoft Windows XP: 
The Official Magazine took place in January
2002 in the UK; since then it has achieved
significant average monthly sales. We now
also publish a French edition.
12
3
Successful international
launch strategy 10 The Future Network plc Annual Report 2002 
Operating and
financial review
Purpose of review
The main purpose of this review 
is to explain the financial results 
for 2002 and thereby to assist
assessment of the future performance
of the Group by setting out the
Directors’ analysis of the business. 
Accordingly, I comment in particular 
on accounting policies that have
required the exercise of judgement 
in their application, and to which the
results are most sensitive; and the
measures used by the Directors as key
performance indicators in managing
the business. 
Structure and size of the Group
By the end of the year under review,
the Group published 82 specialist
magazines and operated subsidiary
companies in the UK and three
overseas countries. In addition, the
Group licensed local editions of its
magazines in a further 27 countries. 
The Group’ s progress in comparison
with 2001 can be seen from the
information shown below and
opposite. (Figures 1, 2 and 3).
Magazine portfolio
During the year 13 titles were
launched, following the significant
launch in October 2001 of the US
Official Xbox Magazine. Management
estimated at the half-year stage that
2002 net losses arising from these 
14 titles (as measured by gross
contribution) would not exceed £2m.
Following stronger than expected
performance, the result for the year
includes an aggregate positive gross
contribution to Group profit from 
these 14 titles.
Magazines launched during 2002
Country Title
UK Official UK Xbox Magazine
UK Xbox Gamer
UK Microsoft Windows XP: 
The Official Magazine
UK Complete Guide Series
UK/
Germany Das Offizielle Xbox Magazin
UK Official PlayStation 2 Tips
UK Digital Camera Magazine
France Xbox Magazine Officiel
France Nintendo Le Magazine 
Officiel
France Microsoft Windows XP: 
Le Magazine Officiel
Italy Xbox Magazine Ufficiale
Italy Play Nation Magazine 
Indipendente
Italy Nintendo La Rivista 
Ufficiale
In seeking further growth during 2003,
the Group expects to commit no more
than £4.0m in respect of 2003 net
losses (measured at the gross
contribution level) arising from new
magazine launches. This represents 
a prudent level of investment in the
development of the Group’ s portfolio
and can also be readily funded from
the Group’ s cash resources.
Key performance indicators used 
by management
The Directors monitor the Group’ s
progress by reference to circulation
and advertising revenue by territory,
by type and by sector. For management
accounts purposes, each magazine
has a profit and loss account, detailing
magazine revenues and (after deducting
direct magazine-related costs) the
resulting gross contribution. Any
magazine which produces a negative
gross contribution is considered
carefully, to ensure that such a result
is justified in business terms: for
example, that early losses following 
a magazine launch are running within
acceptable parameters. Overheads
are reviewed as a block of expenditure
on a country-by-country basis. Gross
contribution less overheads results 
in adjusted operating profit, which the
Directors regard as the single most
important performance measure in
assessing the Group’ s profitability.
New in 2002
• Profit before tax
• Earnings per share
• Net cash
Our focus on operating profitability
has resulted in the Group producing
increased profits from our portfolio
of magazines
John Bowman Group Finance Director
Figure 1. Structure and size of the Group
2002 2001 Change
Total turnover £165.3m £174.1m 5% decrease
Continuing turnover £165.3m £142.9m 16% increase
Magazines 82 76 See Figure 2
Overseas subsidiaries 3 3 No change
Year-end headcount 934 1,002 7% down
Net cash / (net debt) £16.8m (£7.8m) Net inflow of £24.6m 
Figure 2. Magazine portfolio analysed by territory
Number of Disposals/
titles published At 1 January Launches closures At 31 December
UK 51 7 (4) 54
US 5 – – 5
France 10 3 – 13
Italy 10 3 (3) 10
Total 76 13 (7) 82  11 The Future Network plc Annual Report 2002 
Accounting policies 
The Group’ s accounting policies are
explained on pages 44 and 45. Most
of them have remained unchanged
from the previous year. The only policy
which changed related to deferred
taxation. Accordingly, no accounting
policy changes had any impact on the
measurement of the Group’ s pre-tax
profits for 2002. There are however
several areas within the 2002 Group
accounts which required the exercise
of judgement by management, notably
the areas of bad debt provisions and
provisions in respect of onerous
property leases.
Revenue recognition 
As in previous years, circulation and
advertising revenue relating to a
magazine is recognised with effect
from the date the issue goes on sale.
For example, the results for each year
include revenue relating to magazines
which went on sale during December,
but which did not come off sale until
during January. Because magazines
are distributed to retail outlets on a
sale or return basis, an estimate is
made of expected sales; this is later
corrected to actual sales when these
are known. Appropriate adjustments
were made to the results for 2002
(and for each previous year) in order 
to update initial estimates to reflect
the latest available returns information.
Figure 3. Magazine portfolio analysed by sector
Number of 
titles published Computer games Computing Other specialist Total
UK 13 16 25 54
US 3 2 – 5
France 6 7 – 13
Italy 5 5 – 10
Total 27 30 25 82
The result for 
2002 overall 
included a positive
gross contribution to
Group profit from the
year’ s launches Deep connection with readers
The people who work in our companies, who write, design and sell our magazines,
share the same passion with their readers – they connect. From guitar playing to
science fiction, from computer games to hi-fi and from computers to mountain
biking, we have built our business by creating premium-priced, high-quality magazines
clearly targeted at readers who are as enthusiastic about their subject as we are.
This deep connection with readers translates into circulation revenue, which now
accounts for 68% of Group revenues. In the UK, our music portfolio delivered a good
performance in 2002 with six out of eight music titles recording year-on-year growth. Operating and
financial review
continued
13 The Future Network plc Annual Report 2002 
Review of the Group 
profit and loss account
Group turnover
Group turnover for the year was
£165.3m, all of which came from
continuing operations. This compares
with total turnover for 2001 of
£174.1m, of which £142.9m related
to continuing operations. The increase
in turnover from continuing operations
was 16%. 
All turnover was derived 
from the Group’ s principal activity,
of publishing specialist magazines
serving the computer games,
computing and other specialist
(entertainment) sectors. 
(See Figures 4, 5, 6 and 7.)
The following graphs illustrate the
changes in turnover by territory, by 
type, by sector and by half year:
Figure 6. Turnover by sector 
2002 2001* Change
%£m %£m %
Computer games 45% 76.3 38% 54.8 Up 39%
Computing 33% 54.4 37% 53.4 Up 2%
Other specialist 22% 36.4 25% 36.1 Up 1%
Intra-Group – (1.8) – (1.4) –
Group turnover 100% 165.3 100% 142.9 Up 16%
Figure 4. Turnover by territory
2002 2001* Change
%£m %£m %
UK 58% 97.1 60% 86.7 Up 12%
US 24% 40.5 23% 32.6 Up 24%
Mainland Europe 18% 29.5 17% 25.0 Up 18%
Intra-Group – (1.8) (1.4) –
Group turnover 100% 165.3 100% 142.9 Up 16%
Figure 5. Turnover by type
2002 2001* Change
%£m %£m %
Circulation 68% 111.9 64% 91.9 Up 22%
Advertising 29% 48.6 32% 45.5 Up 7%
Other 3% 4.8 4% 5.5 Down 13%
Group turnover 100% 165.3 100% 142.9 Up 16%
Figure 7. Turnover by half year
2002 2001*
%£m %£m
First half 45% 74.0 45% 64.8
Second half 55% 91.3 55% 78.1
100% 165.3 100% 142.9
Computer
games 45%
Other specialist 22%
Computing 33%
Turnover by sector 2002
Computer
games 38% 
Other specialist 25%
Computing 37%
Turnover by sector 2001*
UK 60%
Mainland 
Europe 17%
US 23%
Turnover by territory 2001*
UK 58%
Mainland 
Europe 18%
US 24%
Turnover by territory 2002
Circulation 68%
Other 3%
Advertising 29%
Turnover by type 2002
Circulation 64% 
Other 4%
Advertising 32%
Turnover by type 2001*
First half 45%
Second half 55%
Turnover by half year 2001*
First half 45%
Second half 55%
Turnover by half year 2002
*Continuing business 2001 Market leader in games
Future is the worldwide leader in games magazines with an average monthly
sales figure of owned and licensed magazines now reaching 2.5 million. 
45% of our 2002 revenues came from computer games magazines, while 
the computer games sector itself is estimated to have generated worldwide
hardware and software sales of some $27bn during the year . Within our
portfolio of 27 games titles we have Official relationships with Sony (in the
UK), Nintendo (in France and Italy) and Microsoft (in the UK, US, France, Italy
and Germany). We also publish many unofficial titles including the world’ s
biggest-selling PC games magazine PC Gamer. 15 The Future Network plc Annual Report 2002 
Operating and
financial review
continued
Analysis of Group pre-tax profit
The key elements making up pre-tax
profit for 2002 are detailed in Figure 8
below. The profit before tax for 2002
was £10.7m and the corresponding
figure for 2001 was a pre-tax loss of
£121.0m of which £120.6m
represented amortisation and
impairment of intangible assets. 
Analysis of Group adjusted 
operating profit
Figure 9 analyses the adjusted
operating profit by territory. 
Figure 10 analyses the split of 
adjusted operating profit by half year.
During 2002, 74% of the Group’ s
adjusted operating profit arose in 
the second half of the year, confirming 
the second half trend evident in 2001
when the corresponding proportion in
the second half was 78%. 
Figure 11 analyses the sector split of
gross contribution. It is anticipated that
for 2003 the proportion of the Group’ s
revenues and profits (as measured by
gross contribution) arising from
computer games will move closer 
to 50%.
Figure 8. Analysis of pre-tax profit
£m
Adjusted operating profit 18.2
Other operating income 2.2
Net interest receivable and similar items 0.3
Profit on disposal of fixed asset investments 0.3
Sub-total 21.0
Goodwill amortisation (10.3)
Pre-tax profit 10.7
Figure 10. Adjusted operating profit by half year
2002 2001*
%£m %£m
First half 26% 4.7 22% 2.2
Second half 74% 13.5 78% 7.8
Adjusted operating profit 100% 18.2 100% 10.0
Figure 11. Gross contribution by sector
2002 2001*
% %
Computer games 38% 33%
Computing 38% 39%
Other specialist 24% 28%
Figure 9. Analysis of adjusted operating profit by territory
2002 2001*
£m £m
UK 16.7 13.3
US 4.6 0.4
Mainland Europe – (0.6)
Central costs (3.1) (3.1)
Adjusted operating profit 18.2 10.0
First half 26%
Second half 74%
Adjusted operating profit 
by half year 2002
Adjusted operating profit 
by half year 2001*
First half 22%
Second half 78%
Computing 38%
Other specialist 24%
Computer 
games 38%
Gross contribution by sector 2002
Computing 39%
Other specialist 28%
Computer 
games 33%
Gross contribution by sector 2001 *
*Continuing business 2001 Magazines with great international appeal
Launched in 1996, T3 T omorrow’ s T echnology T oday is now available in 15 international
editions (including UK) and is Future’ s most licensed title. Demonstrating the international
appeal of technology content, our international publishing partners produce local editions
of T3 in countries as diverse as Russia, Australia, Israel, South Africa, Indonesia and
Greece. Around half our UK magazine portfolio is licensed internationally and in 2002
licensing revenues amounted to £3.6m (£1.8m external, £1.8m intra-Group). These
individual licences result in 18 local editions in Future territories and 78 local editions 
in 27 additional countries.  17 The Future Network plc Annual Report 2002 
Operating and
financial review
continued
UK performance for year
Turnover for the year amounted to
£97.1m from continuing activities,
an increase of 12% compared with
2001. Circulation revenue increased
by 19% compared with 2001.
Advertising revenue increased by 1%
compared with 2001. The proportion
of turnover derived from circulation
revenues rose to 73% (2001: 66%).
(See Figures 12 and 13 below.)
During the year, in the UK Future
launched the Official UK Xbox Magazine;
Xbox Gamer, an unofficial games
magazine; Microsoft Windows XP: 
The Official Magazine, a new magazine
licensed from Microsoft; the Complete
Guide series; Official PlayStation 2 
Tips Magazine; and, most recently,
Digital Camera Magazine. In addition 
to these, the UK business also
contracted with a German company 
to contract publish a German language
Official Xbox Magazine.
Computer games magazines had a
strong year, with circulation volumes
up by 23% for titles published during
July–December 2002 compared with
the corresponding six months in 2001
(source: ABC circulation statistics
published in February 2003). 
The year benefited from the increasing
sales of Official PlayStation 2 Magazine,
with a 57% increase year on year in the
average monthly sales of this magazine
to 197,000 for the six months to 
December 2002. Overall, Future’ s 
UK market share of computer games
magazines rose from 55% for the six
months to December 2001 to 61% for
the six months to December 2002.
Continuing turnover for the computing
and entertainment sectors both
showed modest year-on-year increases
of 5% and 1% respectively. This was
achieved by circulation revenue growth
offsetting advertising revenue decline.
In June, subscriptions processing was
outsourced to Customer Interface
Limited, which has taken on 26 former
staff. Subscription revenue in the year
accounted for 10% of UK turnover.
During the year, the UK business
benefited from new contracts for
paper, printing and disc purchasing
which contributed to the improvement
in the UK gross contribution margin 
as shown in Figure 12. It is hoped 
that the new, lower running costs 
will be maintained during 2003. 
The split of continuing gross
contribution by sector is shown 
in Figure 14. Overheads for the year
increased by £1.6m and included the
effects of the relocation, in November,
of the UK accounts function to Bath
from Somerton. This resulted in one-
off overhead costs totalling £0.6m for
redundancy, recruitment and training.
This compares with an estimated
provision of £0.7m which was 
included in the first-half results.
Figure 14. UK gross contribution by sector
2002 2001*
% %
Computer games 32% 29%
Computing 32% 33%
Entertainment 36% 38%
Computer
games 32%
Entertainment 36%
Computing 32%
UK gross contribution by sector 2002
Computer
games 34%
Entertainment 37%
Computing 29%
UK turnover by sector 2002
These changes to subscription
processing and the accounts function
were implemented as part of the
Group’ s continuing drive to improve the
quality and efficiency of its operations,
rather than to reduce cost.
UK adjusted operating profit was
£16.7m, representing an adjusted
operating profit margin of 17% from
continuing activities, compared with
15% in 2001.
Licensing
The Group licenses 78 local editions 
of its magazines in 27 countries, in
addition to those published in the UK,
US, France and Italy. T3 is now the
Group’ s most licensed title, with local
editions sold in 14 different overseas
countries. The results for the year
include £1.8m in respect of licensing
revenue external to the Group 
(2001: £2.3m).
During the second half year, the 
Group has launched the Future 
Games Network, an alliance of 
owned and licensed computer 
games magazines. This is designed 
to benefit from global advertising 
deals and editorial exclusives, as 
well as to reinforce Future’ s position 
as worldwide games market leader.
This represents the latest initiative 
in pursuit of the expansion of the
Group’ s international activities of
which licensing remains a key 
strategic element. 
Figure 12. UK performance for year
Margin 2002 Margin 2001* Increase
%£m %£m %
Turnover 97.1 86.7 12%
Direct costs (55.8) (50.6) 10%
Gross profit 43% 41.3 42% 36.1 14%
Distribution costs (5.3) (5.1) 4%
Gross contribution 37% 36.0 36% 31.0 16%
Overheads (19.3) (17.7) 9%
Adjusted operating profit 17% 16.7 15% 13.3 26%
Figure 13. UK revenue by sector 
2002 2001*
Computer games 34% 29%
Computing 29% 29%
Entertainment 37% 42%
*Continuing business 2001 Driven by innovation
Future’ s magazines are clearly targeted at specialist consumer sectors,
where readers require a narrow range of information deep in content and 
authority. Often this has been achieved through innovations of combining 
various media. From our earliest days, we have integrated magazines with 
other media: computer disks, CD-ROMS, audio CDs, videos and DVDs,
providing content-rich packages with great relevance for defined groups of 
readers. T ypical of this approach is the successful UK launch, in early 2002,
of Microsoft Windows XP: The Official Magazine. This new computing title, which 
is published under an exclusive UK licence with Microsoft, saw its audited 
monthly circulation increase by 21% in the second half. We have extended 
its success by launching a French edition under licence from Microsoft. 19 The Future Network plc Annual Report 2002 
Operating and
financial review
continued
US performance for year
All five magazines performed well
during the year, including the Official
Xbox Magazine, which was launched 
in October 2001. 
Turnover for the year amounted to
£40.5m from continuing activities,
an increase of 24% compared with
2001. (See Figure 15.) Of total US
turnover, 49% comes from circulation
and 48% from advertising. Subscription
revenue in the year accounted for 
24% of US circulation turnover 
(2001: 24%). 
It is interesting to consider the
different business model that is
applicable in the US. The nature of 
this can be seen from the turnover
splits noted in the pie charts. Unlike
UK magazines, most of which are sold 
at newsstands, over 75% of Future’ s
magazine sales in the US are achieved
by subscription. 
Magazine publishers estimate in
advance the total number of magazine
sales for a given period (known as the
‘ratebase’) and it is on the basis of 
such estimates that advertising
bookings are sold. The most recent
circulation statistics covering the six
months to December 2002 show 
that all our titles sold at least their
ratebase numbers.
The US operation had a strong year 
in 2002, with revenues, profits and
margins all well beyond management
expectations. This reflects ongoing
growth in the success of the US games
magazines, together with a particularly
strong fourth quarter. In view of this
success, the possibility of launching 
a new title in the US is being actively
considered for 2003. Any such launch
is likely to reduce profitability in the 
short term.
Mainland Europe performance for year
During the year, Future France
launched three magazine titles: 
Xbox Magazine Officiel, Nintendo 
Le Magazine Officiel and Microsoft
Windows XP: Le Magazine Officiel.
Future Media Italy also launched 
three magazine titles: Xbox Magazine
Ufficiale, Nintendo La Rivista Ufficiale
and Play Nation Magazine Indipendente,
The pie charts below demonstrate how the
majority of magazines sold by Future’ s US
business are sold by subscription. 
Figure 16. Mainland Europe performance for year
2002 2001* Change
£m £m %
Turnover 29.5 25.0 18%
Adjusted operating profit – (0.6) –
Margin – ––
US circulation 
at newsstand 25%
US circulation 
by subscription 75%
US circulation by volume 2002
Circulation 
revenue 2002 49%
Other 3%
Advertising 
revenue 2002 48%
US turnover by type 2002
US newsstand
revenue 76%
US subscription
revenue 24%
US circulation revenue 2002
an unofficial publication, the previous
Official PlayStation 2 Magazine contract
having come to an end. 
Combined turnover from France and
Italy for continuing activities amounted
to £29.5m, an increase of 18% on 
the £25.0m achieved for the same
period last year. (See Figure 16.)
Approximately 74% of this derives 
from circulation sales and 26% 
derives from advertising. 
Mainland Europe operations broke
even at adjusted operating profit level,
compared with an adjusted operating
loss of £0.6m in 2001. The 2002
result is stated after a number of
restructuring costs during the year
totalling £0.7m, principally relating 
to the business in France. Intra-Group
licence fees paid by Mainland Europe
were £1.4m for the year (2001:
£1.4m). After considering these
factors it can be seen that Mainland
Europe has contributed to Group
profitability in 2002. This has been 
a year of consolidation in our business 
on the Continent, including significant
management change.
Figure 15. US performance for year
2002 2001* Change
£m £m %
Turnover 40.5 32.6 24%
Adjusted operating profit 4.6 0.4 1050%
Margin 11% 1% –
*Continuing business 2001 Operating and
financial review
continued
20 The Future Network plc Annual Report 2002 
Operating profitability as measured
by adjusted operating profit
By the end of 2002 all but a very few 
of the Group’ s magazines achieved a
positive gross contribution. Overheads
in each country remained under control
throughout the year.
Adjusted operating profit achieved 
by the UK for 2002 was £16.7m 
and that achieved by overseas
subsidiaries was £4.6m, giving 
a combined total of £21.3m. After
deducting Group central costs of
£3.1m (2001: £3.1m), adjusted
operating profit for the year was
£18.2m (2001: £10.0m) on
continuing turnover of £165.3m
(2001: £142.9m) representing 
an adjusted operating profit margin 
of 11% (2001: 7%) from continuing
operations. 
The Group’ s aspiration is to aim for 
an adjusted operating profit margin 
of 15% in the mid-term.
Other operating income
During the year the UK business
received £2.2m from HM Customs 
and Excise in respect of VAT overpaid
in years prior to 2001. Most of this
refund related to amounts reclaimable
following a review of the complex rules
relating to VAT applicable to magazines
featuring cover-mounts.
The Group has reviewed the
corresponding sales tax regulations
applicable to magazines published 
by its overseas subsidiaries and is
satisfied that the financial statements
adequately reflect liabilities to sales
taxes in those countries.
Net interest receivable 
and similar items
Net interest receivable and similar
items totalled £0.3m for the year. This
represents net bank interest payable 
of £0.1m and other similar charges
totalling £0.5m. This net cost was
more than offset by £0.9m of foreign
exchange gains for the year. 
As the Group held significant net cash
balances at 31 December 2002, no
net interest charge is currently being
incurred in 2003. 
Foreign exchange gains arose
principally in relation to the Group’ s
exposure to the US Dollar, which
weakened by approximately 10%
against the pound during the year. 
The majority of the resulting gain 
has been accounted for in reserves
movements for the year. 
Profit on disposal of fixed asset
investments
As reported last year, at 31 December
2001 the carrying value of all of the
Group’ s investments had been written
down to zero. Following the disposal of
the majority of these investments, the
Group received cash of £0.3m during
the period, giving rise to a gain on
disposal of investments of £0.3m. 
Pre-tax profit
The Group’ s pre-tax profit of £10.7m
comprises pre-amortisation profits 
of £21.0m less goodwill amortisation
of £10.3m.
Tax
The tax charge for the year amounted
to £4.5m on pre-amortisation profits 
of £21.0m, giving an effective tax rate
for the year of 21%. This is less than
the estimate of 32% provided when the
Group announced its half-year results
for two reasons. 
First, prior year credits arose in 2002
amounting to £0.8m and second, the
Group recognised in 2002 a portion of
a deferred tax asset in the US, which 
in prior years had not been recognised.
In accordance with FRS19 and in light
of the level of profitability achieved by
the US business, consideration has
been given to the likelihood of the
asset reversing in the foreseeable
future and an appropriate element has
been recognised in the balance sheet.
At 31 December 2002 there were
significant tax losses being carried
forward in Mainland Europe.
Earnings per share
Basic earnings per share for the year
amounted to 1.9 pence, in comparison
with losses per share in previous years.
Adjusted basic earnings per share
reflects earnings before goodwill
amortisation, other operating income
and refinancing costs. Adjusted basic
earnings per share for the year
amounted to 4.4 pence per share.
Dividends 
The Group has not paid any dividends
since listing on the London Stock
Exchange on 25 June 1999. As
explained in the Chairman’ s statement,
it is the Board’ s intention to pave the
way to enable the payment of dividends
in due course by proposing a reduction
of the Company’ s share premium
account in order to eliminate the
accumulated deficit on the Company’ s
profit and loss account. 
Cash flow and funding
Net cash position
The Group started the year with 
net debt of £7.8m. The year was
significantly cash generative for 
the Group and year-end net cash
balances amounted to £16.8m. 
The Group has maintained its bank
facility, currently amounting to £28.0m,
thereby providing more than adequate
headroom for the operational funding
requirement of current activities.  21 The Future Network plc Annual Report 2002 
The Group expects to be cash
generative in 2003, although the
extent of this is likely to be less
pronounced than in 2002 for a number
of reasons, including the increased 
tax payments due in 2003 and the
absence of certain non-recurring 
cash receipts.
Bank facility
The Company amended and restated
its bank facility, at the time of the 
2001 Rights Issue. The new bank
facility at that time provided a £35.0m
multi-currency revolving credit facility,
repayable over five years, at an annual
borrowing cost of 2.75% over LIBOR
and EURIBOR. 
As at 11 March 2003 the borrowing
facility stood at £28.0m. The Group
expects to review this facility during
the year 2003. 
Hedging policy on interest rates
In 1999 and 2000 the Group took
steps to protect itself from unexpected
interest rate fluctuations. Part of that
policy involved contracting certain
interest rate swaps, which matured 
in December 2002. These swap
arrangements resulted in cash losses
of £0.8m and full provision for these
losses was made at December 2001. 
No new hedging arrangements were
entered into during 2002.
Hedging policy on foreign 
exchange rates
The Group is exposed to exchange 
rate fluctuations in the US Dollar and
the Euro. The Board has developed 
its policies in order to manage the
exposures effectively. These policies
include consideration being given to
currencies negotiated in cross-border
contracts and the use of spot and
forward contracts as appropriate. 
No other instrument may be used 
without the approval of the Board. 
At 31 December 2002 there were 
no outstanding contracts with bank or
other third parties in respect of foreign
exchange hedging arrangements.
Capital expenditure
Capital expenditure amounted to
£0.7m in 2002, compared with £0.5m
in 2001. For 2003 capital expenditure
is not expected to exceed £2.0m.
Review of the Group’s balance sheet
Intangible fixed assets
Intangible fixed assets at the year-end
amounted to £108.6m, compared with
£117.9m at the previous year-end. 
Most of the movement for the year is
explained by the amortisation charge
of £10.3m. Included in this charge for
the year is £1.3m which is the effect 
of reducing the remaining period of 
the goodwill relating to magazines
acquired in Italy in 1999 from 14 years
to six years.
Tangible fixed assets
The carrying value of the Group’ s
tangible fixed assets at the year-end
reduced from £4.4m to £3.2m. 
This reduction reflects modest capital
expenditure of £0.7m, a depreciation
charge of £1.4m, and disposals with
a net book value of £0.5m.
Working capital
The Group had stocks of paper and
other raw materials at the year-end,
and work-in-progress in relation to
magazines scheduled for publication 
in 2003. The total of these amounts
was £3.6m, compared with £3.5m 
at December 2001. 
Group debtors at 31 December 2002
amounted to £33.3m (2001: £42.7m)
and included trade debtors of £24.5m
(2001: £24.4m).
Net cash
The most significant change in 
the Group’s balance sheet was 
the generation of cash as detailed 
in the Group cash flow statement 
on page 42.
As at 31 December 2002 the Group’ s
net cash position was £16.8m
represented by cash at bank and
short-term deposits totalling £18.6m,
and a shareholder loan of £1.8m.
Provisions
The Group balance sheet contains
provisions totalling £3.1m (2001:
£4.6m) of which £2.9m (2001: £4.0m)
relates to property in the UK and US.
Leasehold property
The consolidated balance sheet
contains provisions totalling 
£2.9m (December 2001: £4.0m)
representing provisions against
onerous lease commitments in
respect of property in the US and 
UK and certain UK dilapidation
obligations. The property provision
reduced during the year mainly as 
a result of rental payments made 
in respect of vacant properties. 
During the year the Group paid a 
total of £4.1m in relation to leasehold
property, of which £2.7m was in
respect of occupied property and
£1.4m in respect of unoccupied
property. Had this provision not been
created at 31 December 2001, then
Group profits in 2002 would have been
lower by £1.4m.
By the end of 2003 the Board expects
all UK property to be fully occupied.
The US business continues to have
surplus property available and the 
net annual lease cost of this property 
will reduce going forward but currently
amounts to £0.7m per annum.
Summary
Our focus on operating profitability
during this last year has resulted in 
the Group producing increased profits
from our portfolio of magazines. The
business has demonstrated that it was
strongly cash generative for the year,
enabling all bank debt to be paid off.
Our balance sheet is now stronger 
than at any time since flotation in 
June 1999. 
Operationally and financially, the 
Group has been focused on the
business of publishing successful
magazines, including a number of 
new launches during the year, whilst
carefully assessing both business 
risk and potential opportunities. 
John Bowman Group Finance Director
11 March 2003 22 The Future Network plc Annual Report 2002 
Board of Directors
12
34 5
67
§ 23 The Future Network plc Annual Report 2002 
1. Roger Parry (age 49)
Independent non-executive
Chairman
*+†
Roger was appointed as a non-executive
Director of the Company on 4 June
1999 and as non-executive Chairman 
on 28 September 2001. He runs the
International Division of Clear Channel
Communications, the world’ s largest
operator in three industries: radio,
outdoor advertising and live events.
Previously he was one of the team that
restructured the media-buying group
Aegis plc. He spent three years with
McKinsey, the international consulting
firm, and before that was a journalist
with BBC TV and radio. He is also
Chairman of Johnston Press plc,
a non-executive Director of iTouch plc
and a trustee of the Shakespeare’ s
Globe Theatre.
2. Greg Ingham (age 42)
Chief Executive
Greg was appointed as a Director of
the Company on 11 May 1999, and led
Future through its IPO in June 1999.
He began his publishing career as a
journalist at Reed International plc in
1983. Having edited a trade paper for
four years he joined Future Publishing
Limited in September 1988 as
publisher. He successfully drove
growth in computing and computer
games where Future became clear
market leaders. He was appointed
Managing Director in January 1996
and, following the management
buy-out from Pearson in April 1998,
was appointed Chief Executive of
Future Publishing Holdings Limited. 
He became Chief Executive of the
Company at the time of the flotation.
3. John Bowman (age 46)
Group Finance Director
John joined Future as Group Finance
Director on 16 November 2001. Prior
to that he spent seven years as Group
Finance Director at Scottish Radio
Holdings plc (SRH). His media
experience includes commercial radio,
publishing, outdoor advertising and
film. During his time at SRH, he played
a key role in the group’ s successful
expansion by acquisition and organic
growth. Before joining the SRH group
John worked for KPMG where he
qualified as a chartered accountant.
4. Colin Morrison (age 51)
Chief Operating Officer and Managing
Director UK
Colin joined Future on 5 January 2001
as Chief Operating Officer and also
became Managing Director UK in
September 2001. Colin started his
media career as a journalist. He spent
11 years managing a range of Reed
International operations before being
appointed as Deputy CEO of Reed
Business Information. Following that
he spent four years as CEO of Emap
Business Communications Division
and then four years as Chief Executive
of Sydney-based Australian
Consolidated Press. Prior to joining
Future in January 2001 Colin was 
Chief Executive of the international
operations of German media group
Axel Springer.
5. Michael Penington (age 44)
Senior independent non-executive
*+†
Michael was appointed as a
non-executive Director of the Company
on 19 April 2000 after 16 years at 
US investment bank Morgan Stanley,
most recently as an Executive Director,
Corporate Finance Department. His
experience at Morgan Stanley included
transactions in several European
countries and coverage of venture
capital markets. Currently a consultant
he holds a D.Phil. from Oxford
University. He is non-executive
Chairman of Warwick Effect Polymers
Ltd and a non-executive Director of
Innovonics Ltd, an Australian company.
6. Patrick Taylor (age 54)
Independent non-executive
*+†
Patrick was appointed as a non-executive
Director and Chairman of the Audit
Committee on 24 April 2001. He is
currently Chief Executive of GWR 
Group plc, the UK’ s largest commercial
radio group ranked by licences and
audiences. Before joining GWR, Patrick
was Group Finance Director of Capital
Radio plc. A qualified chartered
accountant, Patrick began his career 
at Coopers & Lybrand and became 
a partner with the practice in 1980,
specialising in corporate finance. 
7. Mark Millar (age 33)
Company Secretary
§
Mark was appointed as Company
Secretary and Head of Legal on 23
September 2002. Mark is a solicitor
who joined the Company from one of
the leading international law firms,
Allen & Overy. He has a wide range of
UK and international commercial and
corporate finance experience gained
over a 10-year legal career in the City.
* Member of the Audit Committee
+ Member of the Remuneration 
Committee
† Member of the Nomination 
Committee
§
Company Secretary Directors’ report
for the year ended 
31 December 2002
24 The Future Network plc Annual Report 2002 
Principal activity and business review 
The Group’ s principal activity is the publishing of specialist
consumer magazines, notably in the computer games,
computing and other specialist sectors. The Company’ s
subsidiaries operate principally in the UK, US, Italy and
France. A review of the activities of the year , the position 
at the year end and likely future developments, is set out 
in the Chairman’ s statement, Chief Executive’ s review and 
the operating and financial review.
Financial results and dividend
Details of the Group’ s profits, losses and tax are set out in
the Group profit and loss account on page 38 and in the 
notes to the financial statements. No dividend has
been paid during 2002 and none is proposed (2001: Nil).
The audited financial statements are set out on pages 
38 to 65.
Share capital
Details of all movements in share capital are given in 
note 19 on page 59. As at 31 December 2002 the 
number of Ordinary shares in issue was 321.1 million. 
This represents an increase of less than 1% compared 
with the number of Ordinary shares in issue on 31 December
2001. All of the new shares were issued following the
exercise of share options.
Significant shareholdings
At 11 March 2003 the Company had the following significant interests in its Ordinary shares.
Member Number of shares Percentage of issued share capital
Fidelity Group 28,099,151 8.75%
JP Morgan Fleming Asset Management 24,858,923 7.74%
The Prudential Group (including M&G) 24,448,433 7.61%
Deutsche Bank 18,742,936 5.84%
Schroder Investment Management 17,805,971 5.54%
Barclays plc 10,528,917 3.28%
Legal and General Group plc 10,334,462 3.22%
Directors’ holdings (see below) 5,823,141 1.81%
Total of significant holdings 140,641,934 43.79%
Total number of shares in issue 321,156,937 100%
Directors’ shareholdings 
The table below shows the Directors’ interests in Ordinary shares of the Company from 1 January 2002 to 
31 December 2002:
Balance as at
31 December 
Balance as at 2002
4
1 January or date 
2002 Purchases Disposals of resignation
Directors in office at 31 December 
Executive
G Ingham 
1, 2 and 3
4,719,271 – (367,000) 4,352,271
C Morrison 176,870 75,000 – 251,870
J Bowman 430,434 69,566 – 500,000
Non-executive 
M Penington 281,000 – – 281,000
R Parry 338,000 – – 338,000
P Taylor 100,000 – – 100,000
Total 6,045,575 144,566 (367,000) 5,823,141
Former Directors
Non-executive
B Clouston 514,000 – – 514,000
E Murdoch 50,000 – – 50,000
Total 6,609,575 144,566 (367,000) 6,387,141
Notes
1 As at 31 December 2002, G Ingham’ s beneficial holding amounted to 3,327,627 Ordinary shares; in addition G Ingham is deemed to be interested
in the 1,024,644 Ordinary shares held by his wife, J Ingham.
2 The holdings of G Ingham at 1 January 2002 include his interests in 317,826 shares, pursuant to the terms of the Purchase Option Deed. Further
details of the Purchase Option Deed are set out in note 26 to the financial statements. G Ingham exercised his option to purchase shares under 
the Purchase Option deed on 22 October 2002.
3 The disposal of 367,000 Ordinary shares was effected by G Ingham’ s wife, J Ingham on 22 October 2002.
4 There were no changes in the Directors’ interests between 31 December 2002 and 11 March 2003. 25 The Future Network plc Annual Report 2002 
Directors 
The names and details of the Directors holding office 
at 31 December 2002 are given on page 23. Elisabeth
Murdoch and Brendon Clouston resigned from the Board 
on 29 May 2002 and 25 September 2002 respectively.
Directors’ shareholdings in the Company’ s Ordinary share
capital are set out on page 24. The Company’ s Register of
Directors’ Interests is open to inspection at the Company’ s
registered office and contains full details of Directors’
shareholdings and options to subscribe for shares. No
Director has any interest in any other share capital of the
Company or any Group Company, nor does any Director 
have a material interest in any contract of significance 
to the Group. 
On 11 March 2003 the Company announced the
appointment of two new non-executive Directors, John
Mellon and Lisa Gordon, with effect from 12 March 2003,
as explained in the Chairman’ s statement.
Corporate governance 
The Board supports best practice in corporate governance
and its report, which includes the Directors’ statement 
of responsibilities for the preparation of the financial
statements, is set out on pages 33 to 35.
Employee policies
Employee motivation and communications are important 
to the Group, which seeks to encourage employee
involvement in all areas of the business. Management
meets regularly with employees to discuss matters of
common interest and to provide opportunities for an 
open exchange of ideas.
Good communications are encouraged by the use of
Future’ s intranet, e-mail and regular briefing meetings to
ensure that all employees are informed about the Group’ s
trading and financial situation and other matters of
importance to them.
The quality, commitment and effectiveness of the Group’ s
employees are crucial to its success. Staff policies are
designed to encourage employees’ interest in the business
and employee share ownership is encouraged through
savings-related and other employee share schemes.
Employment policies do not discriminate between
employees or potential employees on the grounds of colour,
race, ethnic or natural origin, sex, marital status, religious
beliefs or disability. If an employee became disabled whilst
in employment and, as a result, was unable to perform his
or her duties, every effort would be made to offer suitable
alternative employment and assistance with re-training.
Environmental policy
As a publisher and non-manufacturer, the Group’ s main
products are based on intellectual property. However, the
Board is mindful of the potential impact on the environment
of Group activities and recognises its responsibility to the
environment in terms of its purchase of paper and print 
for magazines, and the disposal of waste. The Group’ s
energy consumption represents less than 1% of costs but,
nevertheless, efforts are being made to minimise wastage. 
a) General 
This policy defines the key environmental standards 
to be applied throughout the Group:
• The policy is communicated to all employees via
induction training and the intranet, and to suppliers 
via purchasing staff, contract documentation and 
the Internet. 
• Ultimate responsibility for adherence to policy rests 
with the Managing Directors of each operating company,
who report on compliance to the Chief Executive Officer. 
• We are committed to monitoring and auditing our
performance in the areas of paper, print, and the
disposal of waste.
b) The purchase of magazine paper and print
Paper is by far the largest raw material for the Group. In the
selection of paper and paper suppliers we take account of
suppliers’ environmental credentials and in particular: 
• We are working towards a minimum 90% (by tonnage) 
of our paper usage being derived from either managed
and sustainable forests where at least one tree is
planted for every tree felled, or from recycled fibre.
• We actively encourage our suppliers to work towards 
one of the internationally recognised and independently
audited certification schemes for environmental care 
in forest management and conservation. 
In the selection of print suppliers, we also factor in
environmental considerations. We ensure, via pre-
qualification audits and contract reviews, that appointed
printers have procedures in place to minimise waste at 
all stages of the production process. 
c) The disposal of waste
We comply with our obligations under the Producer
Responsibility Obligations (Packaging Waste) Regulations
1997 in the UK and we ensure compliance with the
equivalent regulations, where they apply, in the other
countries in which the Group has companies. 
We constantly work with print suppliers to ensure the
safe and clean disposal of toxic waste (especially inks) 
and the recycling of waste papers.  26 The Future Network plc Annual Report 2002 
Directors’ 
report 
continued
for the year ended 
31 December 2002
Social responsibility
As noted on page 25, the importance of environmental
responsibility is recognised and although it is considered
that the nature of the Group’ s activities has a minimal 
direct effect on the environment, the Group does seek 
to act responsibly in environmental matters.
With regard to health and safety issues, all of our
operating subsidiaries have a health and safety policy,
designed to encourage good practice by employee and
employer alike.
One particular risk can emerge for publishing companies,
namely the risk of libel claims. Although this is an insured
risk, our publishing subsidiaries have procedures in place
to ensure that any potentially contentious issues are
checked first, with legal advice where appropriate, before
being published.
Supplier payment policy
The policy of the Company and the Group, in relation to
suppliers, is to agree payment terms when an order is
placed, and to abide by those terms provided that goods
and services are supplied in accordance with agreed terms
and conditions. The Company and Group do not follow any
code or standard on payment practice, but it is the policy to
pay all suppliers when their invoices become contractually
due for payment. At 31 December 2002 the Group as a
whole had 55 (2001:61) days of purchases outstanding.
The Company had no trade creditors at the year end.
Introduction of the Euro
The Group has subsidiaries in two countries which adopted
the Euro on 1 January 2002. Both of them successfully
adopted the Euro for their business systems.
Charitable and political contributions 
During the year the Group has made charitable
contributions amounting to £9,000 (2001: £13,000).
During the course of 2002 the Group’ s UK operations
donated surplus computer equipment to 22 schools and
community groups in the Bath and North East Somerset
area, where the Group’ s headquarters are situated.
Consistent with its policy on political contributions,
no political contributions were made (2001: £Nil).
Auditors
Following the conversion of our auditors
PricewaterhouseCoopers to a Limited Liability Partnership
(LLP) on 1 January 2003, PricewaterhouseCoopers
resigned on 7 February 2003 and the Directors appointed
its successor, PricewaterhouseCoopers LLP , as auditors. 
A resolution to reappoint PricewaterhouseCoopers LLP 
as auditors to the Company will be proposed at the Annual
General Meeting.
Annual General Meeting 
The Company’ s fourth Annual General Meeting will 
be held on 15 May 2003 at 11am at 99 Baker Street,
London, W1U 6FP . 
A letter from the Chairman is being sent to all shareholders
to explain the business to be considered at the meeting.
On behalf of the Board 
Mark Millar Company Secretary 
11 March 2003 27 The Future Network plc Annual Report 2002 
Remuneration 
report 
for the year ended 
31 December 2002
Compliance with best practice
The Board seeks to apply best practice in remuneration
policy in line with the standards set out in the Combined
Code issued in June 1998 and appended to the Listing
Rules of the Financial Services Authority.
Remuneration Committee
Throughout the year the Remuneration Committee
comprised three independent non-executive Directors.
Roger Parry served on the Committee throughout 2002.
With effect from 29 May 2002, Michael Penington joined
the Committee as its Chairman, succeeding Elisabeth
Murdoch. Patrick Taylor joined the Committee on 25
September 2002, succeeding Brendan Clouston.
The Committee is responsible for determining the annual
salaries, incentive arrangements, service contracts and all
other terms and conditions of employment of the executive
Directors. The Committee also provides advice to executive
Directors on significant policies affecting the remuneration,
performance and development of senior management
below Board level. The Committee is also responsible 
for approving the terms of all employee share incentive
arrangements.
Advisers to Remuneration Committee
During September 2002 the Committee appointed New
Bridge Street Consultants as advisers to the Committee.
They have provided advice to the Remuneration Committee
principally in relation to the Company’ s plans for Directors’
remuneration for 2003. The total of fees payable to New
Bridge Street Consultants during 2002 did not exceed
£3,000. No other services were provided by them to the
Company or to any Director of the Company.
Compliance with the Combined Code
The Board has applied the ‘Principles of Good Governance’
contained in the Combined Code issued by the Committee
on Corporate Governance as they relate to Directors’
remuneration, in the manner described in this report.
In relation to the Company’ s performance-related
remuneration policy, the Remuneration Committee has
followed Schedule A of the Combined Code, and in relation
to disclosures of Directors’ remuneration, the Committee
has complied with Schedule B of the Combined Code.
Policy on remuneration of executive Directors
In determining the Company’ s policy on executive Directors’
remuneration, the Committee has regard to the following
objectives:
a) Remuneration packages offered to executive Directors
are designed to be competitive, being comparable with
packages available within other groups operating in
similar markets and on a similar scale, including
competitors.
b) Remuneration packages, including long-term incentive
plans, are fixed for individual executive Directors so as 
to attract, retain and motivate executives of the highest
calibre, and at the same time to optimise the interests 
of shareholders.
c) The policy also has regard to the fact that the executive
Directors have shareholdings in the Company, and the
remuneration packages of senior management within 
the Group.
Annual rewards and long-term incentives contain a
significant element of performance-related remuneration,
and are therefore aligned with the Group’ s achievement of
results, and individual executive Directors’ contributions
towards that achievement.
Details of the key elements of basic annual salary, annual
performance-related bonus and pensions are given on page
31. Details of the interests in the Company’ s share option
and sharesave schemes for each executive Director are
given on page 32. Directors’ interests in Ordinary shares
are given in the Directors’ report on page 24.
In terms of policy, the following are the key elements of 
the remuneration packages for the executive Directors:
a) Basic annual salary
In assessing the level of basic annual salary for each
executive Director, account is taken of the pay practices 
of such other companies as the Remuneration Committee
and its external remuneration advisers consider appropriate,
the responsibilities of the executive Director, and pay
awards elsewhere in the Group. Salaries are reviewed
annually by the Remuneration Committee.
b) Performance-related bonuses
During 2001, the Remuneration Committee decided to
discontinue a four-year bonus plan introduced in June 1999,
except that the Company would honour its contractual
obligation to pay deferred bonus payments earned in
previous years. As at 31 December 2002 the only Director
entitled to such a deferred bonus was Greg Ingham to
whom £20,000 becomes payable in June 2003. 
For 2002, performance-related bonuses were dependent
on growth in Group operating profit in 2002 compared 
with 2001. For this purpose, operating profit was measured
by adjusted operating profit for 2002 and by adjusted
operating profit (from continuing activities) for 2001. The
audited figures are £18.2m and £10.0m respectively and
this strong growth exceeded the level at which performance-
related bonuses were capped at 100% of basic annual
salary for 2002. Having reviewed the targets set in light 
of the completion of the annual audit, the Remuneration
Committee has confirmed the award of such bonus to 
each executive Director.
For 2003, the Remuneration Committee has decided 
that performance-related bonuses will be paid according 
to growth in Group operating profit actually achieved in
2003 compared with that recorded for 2002. For this
purpose, operating profit will again be measured by
adjusted operating profit for the relevant periods. No
bonuses will be paid until the completion of the audit 
of the Group’ s financial statements for the year ending 
31 December 2003 and the maximum amount payable 
to any one executive Director in respect of such bonus
is limited to 100% of basic annual salary. Remuneration 
report 
continued
for the year ended 
31 December 2002
c) Long-term incentive plans and interests of shareholders
The Board considers that it is right to align the interests of
executive Directors with those of shareholders generally by
encouraging Directors to hold shares in the Company, and
by the grant of appropriate share incentives to both
executive Directors and senior executives. 
Until now, it was the Board’ s intention to consider the
grant of share options each year, normally within the period
of 42 days following the publication of the Group’ s interim
and/or annual results. The Board now expects to grant a
round of share options during March/ April 2003, and then
to reconsider share option policy following the Annual
General Meeting, at which a new Long-Term Incentive Plan
(LTIP) will be proposed. Assuming the LTIP is adopted, it is
envisaged that it will substantially replace the grant of
further options in the future.
Accompanying this Annual Report is a letter from the
Chairman incorporating the Notice of the Annual General
Meeting (the AGM Notice) explaining the proposed new
LTIP. As part of its proposals, it is envisaged that new
shares in the Company will be issued in due course,
subject to the attainment of appropriate performance
criteria set by the Remuneration Committee. The issue 
of such shares would result in dilution of shareholders’
equity and the Board will therefore comply with the
guidelines on this subject published by the Association 
of British Insurers (ABI) in December 2002.
d) Share option schemes
In considering the grant of share options the Board 
has complied with the latest guidelines on this subject
published by the ABI. The Board favours limiting the value 
of share options granted in any one year to the amount of
basic annual salary and the value of share options granted
in 2001 and 2002 complies in all cases with this limit. The
AGM Notice accompanying this Annual Report contains a
resolution to amend three of the share option scheme rules
so that they comply with the latest ABI guidelines and best
practice, and to ensure consistency among the rules.
The last significant award of share options was made 
on 19 November 2001, following completion of the 2001
Rights Issue, when the Company granted share options 
at a price of 47 pence per share, over a total of 5.2 million
shares including 400,000 each in respect of Greg Ingham,
Colin Morrison and John Bowman. Further details are given
on pages 31 and 32. During 2002 the total number of
share options granted (excluding under sharesave plans)
was 0.5 million. No grants of share options were made to
any Director during 2002.
The options granted on or after 19 November 2001 vest
based on performance criteria set by the Remuneration
Committee. The criteria are set with reference to the growth
in the Company’ s total shareholder return over a three-year
period relative to a comparator group of companies, described
as UK companies whose shares are listed in the Media and
Entertainment sector of the London Share Service of the
Financial Times newspaper. The performance criteria are
considered challenging by the Remuneration Committee
and are considered consistent with the Company’s media
sector peer group.
As explained under (c) above, the Board expects to grant 
a round of share options during March/April 2003.
e) Pensions
Post-retirement benefits, which comprise only pensions,
are based on contributions paid under a Group Personal
Pension Plan. Two executive Directors are members of 
this money-purchase plan, whilst Company contributions 
in respect of Colin Morrison are paid into a non-Group
personal pension plan. The only element of remuneration
which is pensionable is basic annual salary, excluding all
bonuses and benefits-in-kind. Employer’ s pension
contributions were payable in 2002 at 5% of basic annual
salary. The Remuneration Committee has decided that
such contributions are payable at 10% of basic annual
salary with effect from 1 January 2003.
Policy on non-executive Directors’ remuneration
a) Remuneration of non-executive Directors
The remuneration of non-executive Directors is determined
by the executive Board. Fees are paid at a standard annual
rate for non-executive Directors, with additional amounts
payable to those who chair Board committees. The
Chairman’ s fee is determined by Directors other than 
the Chairman.
Non-executive Directors do not have share options,
nor participate in any share or incentive scheme, nor 
any pension arrangements with the Company, with the
exception of Patrick Taylor to whom the Company granted 
an option over 100,000 Ordinary shares at an exercise
price of 47 pence on 19 November 2001 in satisfaction 
of a contractual commitment made when he joined the
Board as a non-executive Director in April 2001.
b) Interests in shares
At flotation in June 1999 non-executive Directors 
were permitted to buy shares in the Company at 
the admission price. 
At the time of the 2001 Rights Issue all of those non-
executive Directors who owned shares in the Company 
took up their rights to purchase additional shares in the
Company pursuant to the Rights Issue and purchased 
such additional shares. Those non-executive Directors 
who did not own shares in the Company purchased 
shares following the Rights Issue. 
Details of non-executive Directors’ current interests 
in shares in the Company are given on page 24. 
Policy on Directors’ service contracts and termination
payments
a) Service contracts of executive Directors and
compensation
Each of Greg Ingham, Colin Morrison and John Bowman 
has a service contract with the Company, which is
terminable on one year’ s notice. Compensation for 
early termination is limited to one year’ s basic salary. 
Details for the contract of service or contract for 
services of each person who has served as a Director 
of the Company at any time during the relevant financial
year are set out on page 29.
28 The Future Network plc Annual Report 2002  29 The Future Network plc Annual Report 2002 
b) Service contracts of non-executive Directors
Non-executive Directors now have three-year service
contracts with the Company which are terminable on 
three months’ notice by either party. It is the policy of 
the Company that non-executive Directors stand for 
re-election every three years and that their initial terms 
will be staggered to avoid retirement simultaneously.
Retirement and re-election
Colin Morrison and Patrick Taylor will retire and be offered 
for re-election at the forthcoming Annual General Meeting 
in accordance with Article 14.1 of the Company’ s Articles 
of Association. John Mellon and Lisa Gordon, the two new
non-executive Directors joining the Board on 12 March
2003, will separately stand for election at the same Annual
General Meeting.
Policy on external appointments
The Company recognises that exposure of its executive
Directors to other boards can broaden their experience
and knowledge. Executive Directors are therefore allowed 
to accept a non-executive appointment, with the Board’ s
approval. As at 11 March 2003 none of the executive
Directors held any external appointments.
Performance Graphs
Total Shareholder Return (TSR) against FTSE Media and
Entertainment Sector Index (UK Companies)
The following graphs show, for three different periods,
the TSR on a holding of shares in the Company compared
with a hypothetical holding of shares made up of shares 
of the same kinds and number as those by reference to
which the FTSE Media and Entertainment Sector Index 
(UK Companies) is calculated.
Graph 1 shows the TSR since 25 June 1999, the date of 
the Company’ s Initial Public Offering. Graph 2 shows the 
TSR since 9 November 2001, the date of the Company’ s
2001 Rights Issue. Graph 3 shows the TSR during the 
year 2002.
The reasons for selecting the FTSE Media and 
Entertainment Sector Index (UK Companies) for these
purposes are that it is the index in which the Company is
classified and it contains the companies which make up the
comparator group used by the Company for options granted
on or since 19 November 2001 for performance criteria
under its share option schemes. The Sector Index currently
comprises 39 companies which are listed on page 68.
Unexpired
term of Compensation Other benefits
contract on payable on relevant to 
Name of Date of 31 December Notice period early termination
Director contract 2002 under contract termination payment
Greg Ingham 17 June 1999 N/A 12 months Salary during unexpired
notice period Nil
Colin Morrison 12 January 2001 N/A 12 months Salary during unexpired 
notice period Nil
John Bowman 20 August 2001 N/A 12 months Salary during unexpired 
notice period Nil 30 The Future Network plc Annual Report 2002 
Remuneration 
report 
continued
for the year ended 
31 December 2002
Graph 2. Since Rights Issue (Commencement of Dealings in New Ordinary shares)
Total Shareholder Return: Rebased to The Future Network as of 9 November 2001
Graph 3. For 2002
Total Shareholder Return: Rebased to The Future Network as of 1 January 2002
Graph 1. Since Initial Public Offering
Total Shareholder Return: Rebased to The Future Network as of 25 June 1999
25.06.99 25.12.99 25.06.00 25.12.00 25.06.01 25.12.01 25.06.02 25.12.02
09.11.01 09.12.01 09.01.02 09.02.02 09.03.02 09.04.02 09.05.02 09.06.02 09.07.02 09.08.02 09.09.02 09.10.02 09.11.02 09.12.02
01.01.02 01.02.02 01.03.02 01.04.02 01.05.02 01.06.02 01.07.02 01.08.02 01.09.02 01.10.02 01.11.02 01.12.02
The Future Network FTSE Media and Entertainment Sector Index (UK Companies) 
The Future Network FTSE Media and Entertainment Sector Index (UK Companies) 
The Future Network FTSE Media and Entertainment Sector Index (UK Companies) 
Emoluments of the Directors
The emoluments of the Directors of the Company (including any entitlement to fees or emoluments from subsidiary
companies) were as follows: 
A. Aggregate Emoluments
2002 2001
£’000 £’000
Salaries and fees 822 1,034
Benefits 37 40
Signing on bonuses – 190
Contractual bonuses – 84
Performance-related bonuses 646 –
Pension contributions 32 22
Total 1,537 1,370
250
200
150
100
50
0
160
140
120
100
80
60
40
20
0
250
200
150
100
50
0
-83.5%
-40.1%
+72.6%
-33.0%
+18.8%
-31.5% 31 The Future Network plc Annual Report 2002 
Share options granted to Directors in 1999, 2000,
2001 and 2002
At the time of the flotation in June 1999, Greg Ingham was
granted options under the Senior Management Share Option
Scheme (Senior Scheme) over the Company’s shares. 
These options were subject to performance criteria based
on growth in the total shareholder return over the three years
to 30 June 2002 in comparison with a comparator group 
of media companies (Carlton Communications plc; Daily
Mail and General Trust plc; EMAP plc; Pearson plc; Reed
Elsevier plc and United News and Media plc). None of the
performance criteria was met and accordingly all of the
share options granted in June 1999 lapsed in June 2002.
No share options were granted in 2000.
Following the 2001 Rights Issue, share options were granted
to each of Greg Ingham, Colin Morrison and John Bowman
on 19 November 2001 at an exercise price of 47 pence,
under The Future Network plc 1999 Inland Revenue Approved
Share Options Scheme and the Senior Scheme. Also on
19 November 2001, share options were granted to Patrick
Taylor under an Option Deed at an exercise price of 47 pence.
These options are subject to performance criteria which
require that options vest if the growth in the Company’s
Shareholder Return over a three-year period relative to 
a comparator group of companies, described as companies
whose shares are listed in the Media and Entertainment
Sector of the London Share Service of the Financial Times
newspaper, reaches the following targets:
(i) If the Company ranks above the 75th percentile 
of the comparator group the options will vest in full.
(ii) If the Company ranks above the 50th percentile of the
comparator group one half of the options will vest.
(iii)If the Company ranks below the 50th percentile 
of the comparator group the options do not vest.
No share options were granted in 2002.
Directors are encouraged to hold their shares for a further
period after exercise, subject to the need to finance any
costs of acquisition and associated tax liabilities.
All options under these schemes have been granted at 
the market price at the time of grant. Numbers of share
options granted and to be granted are limited to those
recommended by the current ABI guidelines.
Details of options held by executive Directors and one
non-executive Director in the Ordinary shares of The Future
Network plc as at 31 December 2002, and movements
during the year are shown on the next page.
B. Individual emoluments of Directors
Value of 
Performance- any other
Salary related non-cash Pension 2002 2001
and Fees bonuses benefits contributions Total Total
£’000 £’000 £’000 £’000 £’000 £’000
Directors in office at 31 December 
Executive
G Ingham
1
236 236 21 12 505 248
C Morrison
1
210 210 8 10 438 330
J Bowman
1
200 200 8 10 418 195
Non-executive
R Parry
2
65 – – – 65 46
M Penington 36 – – – 36 298
P Taylor 40 – – – 40 27
Sub-total 787 646 37 32 1,502 1,144
Former Directors
Executive ––––– 166
Non-executive
B Clouston 22 – – – 22 30
E Murdoch 13 – – – 13 30
Sub-total 35 – – – 35 226
Total 822 646 37 32 1,537 1,370
Notes
1 In relation to the other benefits received, the values indicated relate to the following benefits received by each Director:
Greg Ingham: car benefits, fuel benefit, and private health totalling £21,000
Colin Morrison: car allowance and private health totalling £8,000
John Bowman: car allowance and private health totalling £8,000
There were no taxable expense allowances paid to any Director in 2002.
2 Roger Parry served as non-executive Chairman throughout the year. Mr Parry’ s services were provided by West Eight Investments Limited and fees 
in respect of his services were paid to that company. 32 The Future Network plc Annual Report 2002 
Remuneration 
report 
continued
for the year ended 
31 December 2002
Directors’ interests in share options
Exercise Lapsed Balance
Price Earliest price per Balance at unexercised at 31
Date of paid for exercise Expiry share 1 January during the December
grant grant date date (pence) 2002 year 2002
Directors in office 
at 31 December 2002
Executive
G Ingham 25 June Nil 25 June 25 June 362 221,197 (221,197) –
1999 2002 2009
19 Nov Nil 19 Nov 19 Nov 47 400,000 – 400,000
2001 2004 2011
C Morrison 19 Nov Nil 19 Nov 19 Nov 47 400,000 – 400,000
2001 2004 2011
J Bowman 19 Nov Nil 19 Nov 19 Nov 47 400,000 – 400,000
2001 2004 2011
Non-executive
P Taylor 19 Nov Nil 19 Nov 19 Nov 47 100,000 – 100,000
2001 2004 2011
Interests in Ordinary shares 
The Directors’ interests in the issued Ordinary shares of 
the Company, and movements since 1 January 2002, are
set out on page 24. The Directors’ interests in share options
are set out above and interests in the sharesave plans are
set out below. No options granted by the Company to
Directors were exercised during the year. 
Share options granted to other employees
Options were granted at flotation and subsequently over 
the Company’ s shares under the share schemes detailed 
in note 20 to the accounts. Options granted since the 2001
Rights Issue are subject to performance criteria, which are
linked either to growth in earnings per share or growth in
shareholder return.
During the year, 0.5m options were granted to employees
which are subject to the same performance criteria as 
those options granted to executive Directors on 19
November 2001.
Sharesave plans
The Company’ s Sharesave plans are open to all eligible
employees at the date an invitation is made. Full details 
of the plans are given in note 20. Such options have been
granted in previous years by the Board and on 5 September
2002 the Board issued an invitation to all UK employees. 
A total of 368,550 share options were granted on 4 October
2002 at an exercise price of 50 pence, representing a 
20% discount to the prevailing market price on the date 
of invitation.
In total under the Company’ s Sharesave plans there are
share options outstanding over 2,136,875 Ordinary shares.
Included in this total are options in respect of executive
Directors in the table below.
It is the Board’ s intention to consider the issue of invitations
to eligible employees each year, normally within the period 
of 42 days following the publication of the Group’ s interim
and/or annual results.
Directors’ interests in Sharesave plans
Exercise Balance Lapsed Balance
Price Earliest price per at 1 Granted unexercised at 31 
Date of paid for exercise Expiry share January during the during the December
grant grant date date (pence) 2002 year year 2002
Directors in office 
at 31 December 2002
Executive
G Ingham 18 Dec Nil 18 Feb 18 Oct 38 25,000 –– 25,000
2001 2005 2005
C Morrison 4 Oct Nil 4 Dec 4 Jun 50 – 18,900 – 18,900
2002 2005 2006
J Bowman 4 Oct Nil 4 Dec 4 Jun 50 – 18,900 – 18,900
2002 2005 2006
Share price during the year
The middle market price of an Ordinary share in the
Company during the year was in the range 33 pence to 
70 pence. The average price for the year was 52 pence 
and the year-end price was 55 pence.
Michael Penington
Chairman of the Remuneration Committee
11 March 2003 33 The Future Network plc Annual Report 2002 
Best practice in corporate governance
The Board supports best practice in corporate governance
and confirms that the Group complied throughout the
financial year with the provisions of ‘The Combined Code:
Principles of Good Governance and Code of Best Practice’
except for Code principle D.2, in respect of which the
Directors consider that elements of the Group’ s system of
internal control were found to fall below the standards
required by the Turnbull Report during the earlier part of the
year. Considerable progress has been made during 2002
and the Board considers that the Group’ s system of internal
control now operates to the standard required by the
Turnbull Report.
The Board
The Board is responsible for the Group’ s operations and 
met seven times during the financial year 2002. The Board
currently comprises three executive Directors: Greg Ingham
(Chief Executive), Colin Morrison (Chief Operating Officer
and Managing Director UK) and John Bowman (Group
Finance Director); and three non-executive Directors: Roger
Parry (non-executive Chairman), Michael Penington (senior
independent non-executive Director), and Patrick Taylor.
These six Directors served throughout the year. 
Elisabeth Murdoch and Brendan Clouston resigned from
their positions as non-executive Directors on 29 May 2002
and 25 September 2002 respectively. 
As explained in the Chairman’ s statement, towards the
end of last year the Board as a whole agreed that, while the
balance of non-executive and executive Directors was
satisfactory, it would be desirable in due course to appoint
at least one more non-executive Director. The Company has
announced the appointment of John Mellon and Lisa Gordon
who both join the Board on 12 March 2003 as independent
non-executive Directors. 
Following the appointments mentioned above, the Board 
of eight will comprise an independent non-executive
Chairman, a senior independent non-executive Director,
three other independent non-executive Directors, and 
three executive Directors. 
Non-executive Directors and independence
In the view of the Board, the non-executive Directors bring
strong, independent judgement and considerable knowledge
and experience to the Board’ s deliberations. 
Non-executive Directors serve for three-year terms,
terminable by either party on three months’ notice. There 
is no current limit to the number of terms which may be
served but the Company has been listed on the London
Stock Exchange for less than four years in total. 
Executive Directors
As noted in the remuneration report on page 28, the 
notice period for all executive Directors is one year and 
in the event of termination each executive Director is
entitled to 12 months’ notice and only basic annual 
salary is used to calculate any termination payment.
The Company will ensure that no Director serves for 
a period longer than three years without retiring. John
Bowman, having been appointed in 2001 solely by the 
Board of the Company, retired and stood for re-election 
by the shareholders at the 2002 Annual General Meeting,
as is required by the Code. Greg Ingham also retired and 
was re-elected by shareholders at the Company’ s 2002
Annual General Meeting. Colin Morrison will retire and 
stand for re-election by shareholders at the 2003 Annual
General Meeting.
Company Secretary and advisers 
In September 2002 the Board appointed a new, full-time
Company Secretary and Head of Legal. Mark Millar is an
experienced solicitor who joined from one of the leading
international law firms, Allen & Overy. 
All Board members have access to the advice and
services of the Company Secretary and a procedure 
has been agreed by the Board for all Directors to take
independent professional advice if necessary, and at 
the Company’ s expense, in the furtherance of their 
duties as Directors.
During the year the Board commenced a review of 
its advisers. In October 2002 the Board appointed UBS
Warburg as its sole broker, succeeding Evolution Beeson
Gregory and Morgan Stanley who had acted as joint brokers
from the time of the 2001 Rights Issue. The Company will
continue its review of advisers during 2003.
Corporate
governance 
report 34 The Future Network plc Annual Report 2002 
Committees
Remuneration, Audit and Nomination Committees of the
Board have been established with formally delegated duties
and responsibilities. The Board sets the terms of reference
for all committees and reviews these terms at least annually.
The Remuneration Committee comprises Michael
Penington (Chairman of the Committee since 29 May 2002),
Roger Parry and Patrick Taylor (since 25 September 2002)
and determines independently the remuneration packages
of executive Directors, including their performance-related
awards. The Board’ s remuneration report is set out on pages
27 to 32 and explains the previous membership of 
the Committee and the remuneration policies applicable 
for 2002.
The Audit Committee comprises Patrick Taylor (Chairman
of the Committee), Roger Parry and Michael Penington
(since 25 September 2002). The members of the Audit
Committee are considered by the Company to be independent.
The Audit Committee met three times during the last year.
The Committee’ s terms of reference cover the points
recommended by the Code, and it is responsible for:
• Reviewing the operation of internal controls.
• Reviewing the measurement and reporting of the 
financial performance of the Group.
• Reviewing financial statements before publication 
and making recommendations to the Board on the
appointment of the external auditors.
• Reviewing the scope and results of the auditors’ work,
their independence and objectivity, and the audit fee. 
The Finance Director and other financial management
attend by invitation. The Group’ s auditors attend each
meeting and the Audit Committee considers reports 
from the Finance Director and from the auditors. The Audit
Committee meets with the auditors without the presence 
of executive Directors at least once each year. 
The Nomination Committee comprises Roger Parry
(Chairman of the Committee), Michael Penington (from
25 September 2002) and Patrick Taylor (from 25 September
2002). The Committee has responsibility for making
recommendations to the Board in relation to Board
appointments and succession issues. 
Internal control framework
The Directors acknowledge their responsibility for the
systems of internal control established by the Group and 
for reviewing their effectiveness. The control structure is
designed to manage rather than to eliminate business 
risks, and can provide only reasonable and not absolute
assurance against material misstatement or loss. The
Board has taken further steps which are detailed below 
to enable it to comply closely with the Turnbull guidance 
on internal control.
The Board is provided with a Board pack for each Board
meeting. The pack contains both papers for information 
and others for decision. Board packs are usually circulated
one week in advance of Board meetings to allow proper time
for consideration.
Throughout 2002, the Board was also provided each
month with a timely written report on trading and other
business issues, accompanied by financial information
analysing the previous month’ s trading, and key performance
indicators. Management accounts are reviewed monthly
against both prior year and budget figures. By this means,
all Directors are kept aware of business developments and
trends as they occur. These reports are subsequently
discussed at formal Board meetings.
Executive Directors meet each week and discuss key
business matters. They pay close attention to operational
matters, and also to foreseeable business which requires
approval by the full Board. In this connection there is a List
of Matters Reserved for Decision to the Board. This list was
formally reviewed twice during 2002 and more than half 
of the subjects on it were considered by the Board during 
the year. The list includes approval of interim and annual
results, the Group’ s budget, shareholder circulars, major
investments or financial commitments, magazine launches
if the net loss (at the gross contribution level) in the first
year is planned to exceed £500,000, share incentive
schemes, acquisitions and disposals of trading businesses,
and dividend policy.
Monthly finance review meetings are held with each
operating subsidiary in order to provide a proper opportunity
for financial results and other business and operational
issues to be explored and addressed. During the year 2002,
many important issues were reviewed and progressed.
Group finance staff also make regular visits to overseas
subsidiaries to review financial matters. 
During 2002, a full review of the Group’ s treasury functions
was carried out. After discussion with the Board, changes
were made to treasury policy; local banks were changed in
two overseas territories; and a new Group treasury manual
was issued in order to increase the efficiency of this
important aspect of internal financial control.
The Group has sought to encourage a wider appreciation
of the nature of risk in its business planning. To assist in 
this process, the Group has engaged KPMG to stimulate
discussion and documentation of business risks and the
associated internal control systems. 
Ensuring that the Group employs management of 
suitable experience and calibre is critical to both
achievement of commercial success and management 
of business risk. Several changes were made to senior
management in each territory during the year as discussed
in the Chief Executive’ s review.
Corporate
governance 
report
continued 35 The Future Network plc Annual Report 2002 
Results of the Board’s annual review of internal controls
The Board has conducted an annual review for 2002 as 
to the effectiveness of its system of internal control. It has
concluded that significant assurance can be drawn from 
the existing systems, which have developed further during
the year. As a result the Board expects to be able to state 
in its Annual Report for 2003 that it fully complied with the
Turnbull recommendations for all of the year 2003.
Internal audit function
During the year 2002 the Board reconsidered the need for
an internal audit function. The Board has concluded that an
independent internal audit department with the necessary
technical and language skills is not justified by the current
size of the Group. The Group has not therefore implemented
an internal audit programme in the manner anticipated in
last year’ s Annual Report.
The Board’ s preference has been to ensure that the
Group allocates sufficient time and resources to manage
the many business risks faced by the Group, including but
not limited to financial risks. The Board considered creating
risk committees but chose instead to seek to embed this
important aspect of corporate governance within the
operating boards of the four countries, as well as the parent
company Board.
Directors’ responsibilities for the preparation of financial
statements
The Directors are required by law to prepare financial
statements for each financial year which give a true and fair
view of the state of affairs of the Company and of the Group
as at the end of the financial year and of the profit or loss of
the Group for that year. In preparing those financial
statements, the Directors are required to:
• Select suitable accounting policies and then apply them
consistently.
• Make judgements and estimates that are reasonable
and prudent.
• State whether applicable accounting standards have
been followed, subject to any material departures
disclosed and explained in the financial statements.
The Directors confirm that they have complied with these
requirements in preparing the financial statements.
The Directors are responsible for the keeping of proper
accounting records, which disclose with reasonable
accuracy at any time the financial position of the Company
and the Group and enable them to ensure that the financial
statements comply with the Companies Act 1985. They are
also responsible for the safeguarding of the assets of the
Company and of the Group, and for the taking of reasonable
steps to prevent and detect fraud and other irregularities.
The Directors are also responsible for the maintenance
and integrity of the Group’ s website. Information published
on the Internet is accessible in many countries with different
legal requirements. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Relations with shareholders
The majority of the Company’ s shares are held by institutions,
with the remainder held by private shareholders. There 
is a regular dialogue with shareholders through a planned
programme of investor relations which includes formal
presentations of the Group’ s half-year and annual results 
by the three executive Directors. The Company’ s website,
www.thefuturenetwork.plc.uk contains up-to-date
information on the Group’ s activities and the investor
relations section includes a full copy of the annual results,
the presentation given to analysts, and an audio recording
of the presentation made by the executive Directors.
Group management also meets with institutional
investors and analysts on a regular basis, except during
close periods (the period of two months preceding
announcement of half-year and annual results) and there 
is regular communication with all shareholders through 
the Interim and Annual Reports.
Going concern basis
The Directors are satisfied that the Company and the 
Group have adequate resources to continue in operational
existence for the foreseeable future. For this reason they
have adopted the going concern basis in preparing the
financial statements.
Auditors’ responsibilities
Auditors’ responsibilities in relation to the financial
statements are included in the auditors’ report to the
members of The Future Network plc on page 36.
Auditors’ fees
The Audit Committee has reviewed the remuneration
received by PricewaterhouseCoopers LLP for non-audit
work. The fees for non-audit work largely comprise 
work in respect of taxation. The Audit Committee has
concluded that no conflict of interest exists between
PricewaterhouseCoopers LLP audit and non-audit work 
and that their involvement was the most effective way of
conducting the Group’ s business during the last year. 
Approved by the Board of Directors on 11 March 2003
Mark Millar Company Secretary
11 March 2003 36 The Future Network plc Annual Report 2002 
Independent
auditors’ report
to the members
of The Future
Network plc
Independent auditors’ report to the members of The Future
Network plc
We have audited the financial statements which comprise
the Group profit and loss account, the Group balance sheet,
the Company balance sheet, the Group cash flow
statement, the Group statement of total recognised 
gains and losses, the Group reconciliation of movement 
in shareholders’ funds, the accounting policies and the
related notes. We have also audited the disclosures
required by Part 3 of Schedule 7A to the Companies 
Act 1985 contained in the remuneration report 
(‘the auditable part’).
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual
Report, the remuneration report and the financial
statements in accordance with applicable United Kingdom
law and accounting standards are set out in the statement
of Directors’ responsibilities. 
Our responsibility is to audit the financial statements and
the auditable part of the remuneration report in accordance
with relevant legal and regulatory requirements and United
Kingdom Auditing Standards issued by the Auditing
Practices Board. This report, including the opinion, has been
prepared for and only for the Company’ s members as a body
in accordance with Section 235 of the Companies Act 1985
and for no other purpose. We do not, in giving this opinion,
accept or assume responsibility for any other purpose or to
any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior
consent in writing.
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the auditable part of the remuneration
report have been properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion,
the Directors’ report is not consistent with the financial
statements, if the Company has not kept proper accounting
records, if we have not received all the information and
explanations we require for our audit, or if information
specified by law regarding Directors’ remuneration and
transactions is not disclosed.
We read the other information contained in the Annual
Report and consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements. The other
information comprises only the Chairman’ s statement, the
Chief Executive’ s review, the operating and financial review,
the Directors’ report, the unaudited part of the remuneration
report and the corporate governance report. 
We review whether the corporate governance report
reflects the Company’ s compliance with the seven provisions
of the Combined Code specified for our review by the Listing
Rules of the Financial Services Authority, and we report if 
it does not. We are not required to consider whether the
Board’ s statements on internal control cover all risks and
controls, or to form an opinion on the effectiveness of the
Group’ s corporate governance procedures or its risk and
control procedures. 
Basis of audit opinion
We conducted our audit in accordance with auditing
standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant
to the amounts and disclosures in the financial statements
and the auditable part of the remuneration report. It also
includes an assessment of the significant estimates and
judgements made by the Directors in the preparation of 
the financial statements, and of whether the accounting
policies are appropriate to the Company’ s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence to
give reasonable assurance that the financial statements
and the auditable part of the remuneration report are free
from material misstatement, whether caused by fraud or
other irregularity or error. In forming our opinion we also
evaluated the overall adequacy of the presentation of
information in the financial statements.
Opinion
In our opinion:
• The financial statements give a true and fair view of 
the state of affairs of the Company and the Group at 
31 December 2002 and the profit and cash flows of 
the Group for the year then ended.
• The financial statements have been properly prepared 
in accordance with the Companies Act 1985.
• Those parts of the remuneration report required by 
Part 3 of Schedule 7A to the Companies Act 1985 
have been properly prepared in accordance with the
Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Bristol
11 March 2003 37 The Future Network plc Annual Report 2002 
Financial 
statements
38 Group profit and loss account 
39 Group statement of total 
recognised gains 
39 Group reconciliation of movements 
in shareholders’ funds 
40 Group balance sheet 
41 Company balance sheet 
42 Group cash flow statement 
43 Notes to the Group cash 
flow statement 
44 Accounting policies 
46 Notes to the financial statements 
66 Shareholder information 
66 Annual timetable 
67 Registered office and advisers 
68 FTSE Media and Entertainment
Sector Index (UK companies) 2002 2001
Total Total
Note £m £m
Turnover
Continuing operations 1 165.3 142.9
Discontinued operations 1 – 31.2
1 165.3 174.1
Operating profit/(loss)
Continuing operations
Operating profit before amortisation and impairment of intangible assets, 
other operating income and refinancing costs 18.2 10.0
Amortisation and impairment of intangible assets 2, 9 (10.3) (117.3)
Other operating income 2 2.2 –
Refinancing costs – (3.8)
10.1 (111.1)
Discontinued operations
Operating loss before amortisation and impairment of intangible assets – (15.7)
Amortisation and impairment of intangible assets 2 – (3.3)
– (19.0)
Operating profit/(loss) 2 10.1 (130.1)
Share of operating profit from associate – 0.7
Total operating profit/(loss) including share of associate 10.1 (129.4)
Net exceptional gain arising on sale or termination of businesses 3 – 15.4
Profit/(loss) on disposal of fixed asset investments 0.3 (0.3)
Write down of fixed asset investments – (0.2)
Profit/(loss) on ordinary activities before interest 10.4 (114.5)
Net interest receivable/(payable) and similar items 6 0.3 (6.5)
Profit/(loss) on ordinary activities before tax 1 10.7 (121.0)
Tax on profit/(loss) on ordinary activities 7 (4.5) (2.3)
Profit/(loss) on ordinary activities after tax 6.2 (123.3)
Retained profit/(loss) for the financial year 22 6.2 (123.3)
Earnings per 1 pence Ordinary share 
2002 2001
pence pence
Basic earnings/(loss) per share 8 1.9 (69.6)
Adjusted basic earnings per share 8 4.4 0.6
Diluted earnings/(loss) per share 8 1.9 (69.6)
Adjusted diluted earnings per share 8 4.4 0.6
38 The Future Network plc Annual Report 2002 
Group profit and
loss account
for the year ended 
31 December 2002 39 The Future Network plc Annual Report 2002 
Group statement
of total recognised
gains and losses
for the year ended 
31 December 2002
Group
reconciliation 
of movements 
in shareholders’
funds
for the year ended 
31 December 2002
2002 2001
Note £m £m
Retained profit/(loss) for the financial year 22 6.2 (123.3)
Net exchange adjustments offset in reserves 22 0.4 (0.1)
Tax on exchange adjustments offset in reserves 22 (0.6) –
Reversion of rights pertaining to investments from departing employees – 0.3
Realised loss arising from the provision of advertising 
in exchange for warrants to acquire unlisted investments – (0.1)
Total recognised gain/(loss) relating to the year 6.0 (123.2)
2002 2001
Note £m £m
Retained profit/(loss) for the financial year 22 6.2 (123.3)
Premium on shares issued during the year 21 – 0.6
Proceeds from issue of shares as part of the Rights Issue – 1.8
Premium on shares issued as part of the Rights Issue 21 – 32.9
Costs of the Rights Issue written off against share premium 21 – (1.7)
Net exchange adjustments offset in reserves 22 0.4 (0.1)
Tax on exchange adjustments offset in reserves 22 (0.6) –
Realised loss arising from the provision of advertising 
in exchange for warrants to acquire unlisted investments – (0.1)
Reversion of rights pertaining to investments from departing employees – 0.3
Net movement in shareholders’ funds 6.0 (89.6)
Opening equity shareholders’ funds 106.0 195.6
Equity shareholders’ funds as at 31 December 112.0 106.0 Group 
balance sheet
as at 31 December 2002
2002 2001
Note £m £m
Fixed assets
Intangible assets 9 108.6 117.9
Tangible assets 10 3.2 4.4
111.8 122.3
Current assets
Stocks 12 3.6 3.5
Debtors 13 33.3 42.7
Investments 11 6.2 3.5
Cash at bank and in hand 12.4 9.5
55.5 59.2
Creditors: amounts falling due within one year 14 (49.7) (49.1)
Net current assets 5.8 10.1
Total assets less current liabilities 117.6 132.4
Creditors: amounts falling due after more than one year 15 (2.5) (21.8)
Provisions for liabilities and charges 17 (3.1) (4.6)
Net assets 112.0 106.0
Capital and reserves
Called-up share capital 19 3.2 3.2
Share premium account 21 169.6 169.6
Merger reserve 23 109.0 109.0
Other reserves 23 21.8 21.8
Profit and loss account 22 (191.6) (197.6)
Equity shareholders’ funds 112.0 106.0
Approved by the Board of Directors on 11 March 2003 and signed on its behalf by:
R Parry Chairman J Bowman Group Finance Director
40 The Future Network plc Annual Report 2002  Company 
balance sheet
as at 31 December 2002
2002 2001
Note £m £m
Fixed assets
Investments 11 20.2 20.8
20.2 20.8
Current assets
Debtors 13 163.1 129.6
Investments 11 6.2 3.0
Cash at bank and in hand 5.6 0.4
174.9 133.0
Creditors: amounts falling due within one year 14 (59.2) (29.4)
Net current assets 115.7 103.6
Total assets less current liabilities 135.9 124.4
Creditors: amounts falling due after more than one year 15 – (18.8)
Net assets 135.9 105.6
Capital and reserves
Called-up share capital 19 3.2 3.2
Share premium account 21 169.6 169.6
Other reserves 23 21.8 21.8
Profit and loss account 22 (58.7) (89.0)
Equity shareholders’ funds 135.9 105.6
Approved by the Board of Directors on 11 March 2003 and signed on its behalf by:
R Parry Chairman J Bowman Group Finance Director
41 The Future Network plc Annual Report 2002  42 The Future Network plc Annual Report 2002 
Group cash flow
statement
for the year ended 
31 December 2002
2002 2001
Note £m £m
Net cash inflow/(outflow) from operating activities A 27.0 (6.5)
Dividends from associates – 0.7
Returns on investments and servicing of finance
Interest received 0.3 0.4
Interest paid (1.3) (7.9)
Net cash outflow from returns on investments and servicing of finance (1.0) (7.5)
Tax
Tax paid (3.2) (10.6)
Tax received 1.8 3.7
Net tax paid (1.4) (6.9)
Capital expenditure and financial investment
Purchase of tangible fixed assets (0.7) (0.4)
Sale of tangible fixed assets 0.6 0.1
Sale of fixed asset investments 0.3 0.6
Net cash inflow from capital expenditure and financial investment 0.2 0.3
Acquisitions and disposals
Purchase of subsidiary undertakings – (4.0)
Net cash acquired with subsidiary undertakings – 1.2
Cash proceeds on disposal of magazines – 45.5
Cash proceeds from disposal of subsidiary undertakings – 6.0
Net cash disposed of with subsidiary undertakings – (1.4)
Purchase of subscription lists (0.1) (0.1)
Payment of deferred consideration (0.7) (0.8)
Receipt of deferred consideration – 0.6
Net cash (outflow)/inflow for acquisitions and disposals (0.8) 47.0
Management of liquid resources
(Increase)/decrease in short-term deposits with bank (2.7) 0.7
Net cash (outflow)/inflow in management of liquid resources (2.7) 0.7
Net cash inflow before financing 21.3 27.8
Financing
Proceeds from issue of Ordinary share capital – 35.2
Expenses of share issue – (1.7)
Draw down of bank loans – 19.4
Movement on discounted bills (0.2) (0.6)
Movement in shareholder loan 0.1 (0.2)
Repayment of bank loans (18.9) (78.3)
Net cash outflow from financing (19.0) (26.2)
Increase in cash in the year 2.3 1.6 43 The Future Network plc Annual Report 2002 
Notes to the
Group cash 
flow statement
for the year ended 
31 December 2002
A. Cash flow from operating activities
The reconciliation of operating profit/(loss) to net cash inflow/(outflow) from operating activities is as follows:
Group Group
2002 2001
£m £m
Operating profit/(loss) 10.1 (130.1)
Cash flows on sale or termination of operations – (12.3)
Depreciation charge 1.4 2.8
Goodwill amortisation and impairment 10.3 120.6
Movement in provisions (1.5) 3.5
(Increase)/decrease in stocks (0.3) 4.7
Decrease in debtors 8.3 20.0
Decrease in creditors (1.3) (15.7)
Net cash inflow/(outflow) from operating activities 27.0 (6.5)
B. Analysis of net cash/(debt)
At 1 January Exchange Other non At 31 December
2002 Cash inflow movements cash changes 2002
£m £m £m £m £m
Cash at bank and in hand 9.5 2.3 0.6 – 12.4
Debt due after one year (20.7) 18.9 0.1 (0.1) (1.8)
Debt due within one year (0.1) 0.1 – – –
Liquid resources 3.5 2.7 – – 6.2
(7.8) 24.0 0.7 (0.1) 16.8
Other non cash changes are the amortisation of bank finance costs.
C. Reconciliation of movement in net cash/(debt)
2002 2001
£m £m
Net debt at 1 January (7.8) (68.9)
Increase in cash 2.3 1.6
Movement in deposits 2.7 (0.7)
Movement in borrowings 19.0 59.0
Amortisation of bank finance costs (0.1) (0.1)
Exchange movements 0.7 1.3
Net cash/(debt) at 31 December 16.8 (7.8) Accounting
policies
Accounting policies
Basis of preparation of accounts
The accounts have been prepared under the historical cost
convention, and in accordance with accounting standards
applicable in the United Kingdom. The principal accounting
policies, which have been consistently applied except in
respect of deferred tax, are set out below.
The Group has adopted FRS19 ‘Deferred Tax’ in the
financial statements. The adoption of this standard
represents a change in accounting policy. In adopting 
this standard there is no requirement to restate prior year
figures as any adjustments would not be material to the
current or prior year financial statements.
Basis of consolidation
The consolidated accounts comprise the Company and 
all of its subsidiary undertakings. The principal operating
subsidiary undertakings are listed in note 28 to the
accounts. The results of subsidiary undertakings are
consolidated from the effective date of acquisition and
businesses sold are included up to the date of disposal.
Interests in associated companies are included in 
the consolidated accounts using the equity method 
of accounting.
Intangible assets
On acquisition of a subsidiary, associated undertaking 
or business, the purchase consideration is allocated
between the underlying net assets on a fair value basis, 
with any excess purchase consideration representing
goodwill. The purchase consideration is stated at fair 
value. Purchased goodwill is capitalised and amortised 
on a straight-line basis over the estimated useful life 
of each acquisition. Internally developed goodwill and 
other intangible assets are not capitalised. 
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated
depreciation. No depreciation is provided on freehold land. 
For other tangible fixed assets depreciation is
calculated to write down the cost of the tangible fixed
assets to their estimated residual values by equal annual
instalments over the period of their estimated useful lives,
which are considered to be:
Freehold buildings – 50 years
Leasehold properties – 50 years or period of the
and improvements lease if shorter
Plant and machinery – between two and five years
Equipment, fixtures 
and fittings – between two and 10 years
Impairment of fixed assets 
Fixed assets including goodwill are reviewed to determine
whether their value appears to have been impaired. 
Where a fixed asset has been impaired, the impairment 
is charged to the profit and loss account, and the asset 
is carried at its recoverable amount.
Investments
Investments in subsidiary undertakings are stated at 
the fair value of consideration payable including related
acquisition costs. Other fixed asset and short-term
investments are stated at the lower of cost and net
realisable value. 
Foreign currencies
Transactions in foreign currencies are recorded at the 
rate of exchange ruling at the date of the transaction, 
or where forward exchange contracts have been arranged, 
at the contracted rate. Monetary assets and liabilities
denominated in foreign currencies, where a contract rate
does not apply, are translated at the exchange rates ruling
at the balance sheet date, and any exchange differences 
are taken to the profit and loss account.
Profits and losses of overseas subsidiaries that have
currencies of operation other than sterling are translated
into sterling at average rates of exchange ruling during the
period, except for material items that are translated at the
rate ruling at the date of transaction. Differences between
the profit and loss accounts translated at average rates 
and at balance sheet rates are shown as a movement on
reserves and in the statement of total recognised gains 
and losses.
Where practicable, the Group’s overseas equity
investments are financed by borrowings in the currencies 
in which those assets are denominated. Exchange
differences arising from the retranslation of overseas 
net investments, including goodwill and any related loans
together with the related tax effect, are dealt with through
reserves and the statement of total recognised gains 
and losses to the extent permitted under SSAP20. 
Other exchange differences are taken to the profit 
and loss account.
Financial instruments
Derivative financial instruments are used by the Group to
reduce exposure to foreign exchange and interest rate risks.
A derivative instrument is considered to be used for hedging
purposes when it alters the risk profile of an existing
underlying exposure of the Group.
Payments and receipts under interest rate swaps 
are accrued within net interest payable. The swaps are not
revalued to fair value or shown in the Group balance sheet
at the year end unless the exposure which they were hedging
no longer exists or the swaps are no longer considered
necessary by reference to the stated policy of the Board.
44 The Future Network plc Annual Report 2002  Stocks and work in progress
Stocks and work in progress are stated at the lower of cost
and net realisable value. For raw materials, cost is taken 
to be the purchase price. For work in progress and finished
products cost is calculated as the direct cost of production.
Turnover
Turnover is the amount derived from the provision of goods
and services falling within the Group’s ordinary activities
after deduction of trade discounts, provision for returns and
value added taxes. The circulation and advertising turnover
relating to a magazine issue is recognised with effect from
the date that the issue goes on sale. Income arising from
exhibitions and shows relating to future periods is deferred
until those events have taken place. Related costs are also
deferred but only to the extent that they are expected to 
be recoverable.
Deferred income
Subscription payments received are held in the balance
sheet and recognised in the profit and loss account 
on publication of each issue.
Leases
Rentals under operating leases are charged to the 
profit and loss account on a straight-line basis over 
the lease term.
When a leasehold property ceases to be used in 
the business, provision is made to the extent that the
recoverable amount of the interest in the property is
expected to be insufficient to cover future obligations
relating to the lease.
Capitalisation of finance costs and interest
All borrowings are initially stated at the fair value of the
consideration received after deduction of issue costs. Issue
costs together with finance costs are charged to the profit
and loss account over the terms of the borrowings and
represent a constant proportion of the capital repayments
outstanding. Accrued finance costs attributable to borrowings
where the maturity at the date of issue is less than 12
months are included in the accrued charges within current
liabilities. For all other borrowings, accrued finance charges
and issue costs are added to the carrying value of 
those borrowings.
Development and subscription costs
Launch, development and subscription costs are written 
off in full as incurred.
Pensions
Contributions payable in respect of defined contribution
schemes are charged to the profit and loss account 
as incurred.
Deferred tax
Deferred tax is provided in full on all material timing
differences. Deferred tax assets are recognised when 
their recovery is considered more likely than not. 
Deferred tax assets and liabilities are not discounted.
Share schemes
When an employee is granted options to subscribe for
shares, any difference between the fair value of those
shares at the date the grant is made and the option price
payable by the employee is charged to the profit and loss
account over the period from the date of grant to the date 
at which the employee becomes unconditionally entitled 
to the shares. 
The only exception to this is in respect of options
granted under the Sharesave plan. Under this plan options
may be granted at a discount of 20% to the market price. 
In line with UITF17 this discount is not charged to the profit
and loss account.
Employer taxes on options and share-related benefits
are accrued over the performance period of the option in
accordance with UITF25: ‘National Insurance contributions
on share option gains’.
45 The Future Network plc Annual Report 2002 
Accounting
policies Notes to 
the financial
statements
1. Segmental reporting
The Group is involved in one class of business, the publication of magazines. The geographical analyses of turnover,
profit/(loss) on ordinary activities before tax, and net assets by origin were as follows:
a) Turnover by category
Continuing Discontinued
Total operations operations Total
2002 2001 2001 2001
Turnover by category £m £m £m £m
Circulation 111.9 91.9 13.2 105.1
Advertising 48.6 45.5 16.3 61.8
Other 4.8 5.5 1.7 7.2
Total 165.3 142.9 31.2 174.1
All turnover in 2002 relates to continuing operations.
b) Turnover by origin
Continuing Discontinued Total
Total operations operations turnover
2002 2001 2001 2001
£m £m £m £m
United Kingdom 97.1 86.7 3.2 89.9
United States 40.5 32.6 16.8 49.4
Mainland Europe 29.5 25.0 11.6 36.6
Turnover between segments (1.8) (1.4) (0.4) (1.8)
Total 165.3 142.9 31.2 174.1
c) Turnover by destination
Total Total
2002 2001
£m £m
United Kingdom 82.6 81.8
United States 40.5 48.2
Mainland Europe 35.1 39.9
Rest of the world 8.9 6.0
Turnover between segments (1.8) (1.8)
Total 165.3 174.1
d) Profit/(loss) on ordinary activities before tax by origin
Continuing Discontinued
Total operations operations Total
2002 2001 2001 2001
£m £m £m £m
United Kingdom 14.2 3.9 (2.9) 1.0
United States 2.3 (91.0) 6.6 (84.4)
Mainland Europe (3.4) (19.8) (6.9) (26.7)
Central costs (2.4) (7.1) (3.8) (10.9)
Total 10.7 (114.0) (7.0) (121.0)
e) Net assets by origin
Total Total
2002 2001
£m £m
United Kingdom 91.0 82.2
United States 11.7 33.6
Mainland Europe 11.1 9.1
Interest bearing liabilities (1.8) (18.9)
Total 112.0 106.0
46 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
2. Operating profit/(loss)
2002 2001
Total Continuing Discontinued Total
£m £m £m £m
Turnover 165.3 142.9 31.2 174.1
Cost of sales (103.2) (90.3) (38.1) (128.4)
Gross profit/(loss) 62.1 52.6 (6.9) 45.7
Distribution expenses (10.4) (11.4) (0.5) (11.9)
Administration expenses (33.5) (31.2) (8.3) (39.5)
Amortisation and impairment of 
intangible assets (10.3) (117.3) (3.3) (120.6)
Other operating income (see below) 2.2 –––
Refinancing costs – (3.8) – (3.8)
Total administration expenses (41.6) (152.3) (11.6) (163.9)
Operating profit/(loss) 10.1 (111.1) (19.0) (130.1)
All results in 2002 relate to continuing operations.
Actual Actual
2002 2001
£m £m
Profit/(loss) on ordinary activities before tax is stated after charging/(crediting):
Staff costs (note 5) 36.0 53.9
Depreciation of owned assets (note 10) 1.4 2.8
Amortisation of intangible assets (note 9) 10.3 23.0
Impairment of intangible assets – 96.4
Amortisation of associated undertakings goodwill – 1.2
Hire of machinery and equipment 0.2 0.6
Other operating lease rentals 2.5 5.3
Other operating income (see below) (2.2) –
Net exchange gain on foreign currency borrowings less deposits (0.9) (1.0)
Other operating income represents a refund received from HM Customs and Excise in the UK in respect of VAT 
overpaid in years prior to 2001.
3. Net exceptional gain arising on sale or termination of businesses
2002 2001
£m £m
Losses on sale or termination of businesses – (12.3)
Profit on disposal of magazine titles – 30.2
Losses on disposal of subsidiaries – (2.5)
Net exceptional gain – 15.4
4. Fees paid to auditors
2002 2001
£m £m
Statutory audit 0.2 0.2
Reporting accountants’ work in respect of shareholder circulars – 1.2
Taxation and other services 0.5 0.4
Total 0.7 1.8
The audit fee for the Company included within the Group fee was £47,500 (2001: £52,000). 
47 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
5. Employees and Directors 
2002 2001
Staff costs £m £m
Wages and salaries 30.9 47.8
Social security costs 4.5 5.5
Other pension costs (note 24) 0.6 0.6
36.0 53.9
Redundancy costs included in loss on sale or termination of businesses – 6.3
Total 36.0 60.2
Average monthly number of people (including executive Directors) 
Production 649 1,022
Administration 315 381
Total 964 1,403
At 31 December 2002 the actual number of people employed by the Group was 934 (2001: 1,002). Details of the Directors’
remuneration and interests are provided within the remuneration report on pages 27 to 32. The highest paid Director 
during the year was Greg Ingham (2001: Colin Morrison) and details of his remuneration are shown on pages 31 and 32. 
These disclosures form part of the financial statements.
6. Net interest (receivable)/payable and similar items
2002 2001
£m £m
Interest payable on bank loans and overdrafts 0.4 7.1
Amortisation of issue costs of bank loan 0.1 0.1
Interest payable on other loans 0.1 0.4
Amortisation of discount relating to vacant property provisions 0.2 0.2
Amortisation of discount arising on fair valuing of deferred consideration 0.1 0.1
Total interest payable and similar charges 0.9 7.9
Interest receivable (0.3) (0.4)
Exchange gains (0.9) (1.0)
Total interest receivable and similar items (1.2) (1.4)
Net interest (receivable)/payable and similar items (0.3) 6.5
48 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
7. Tax on profit/(loss) on ordinary activities
a) Analysis of tax charge in the year
2002 2001
£m £m
UK corporation tax at 30% (2001: 30%) on profits for the year 4.8 0.1
Adjustments in respect of previous years – (0.6)
4.8 (0.5)
Overseas taxes 1.1 4.5
Adjustments in respect of previous years (0.8) (0.3)
Total current tax 5.1 3.7
Deferred tax origination and reversal of timing differences
– Current year credit (0.8) (0.7)
– Prior year charge/(credit) 0.2 (0.7)
Tax on profit on ordinary activities 4.5 2.3
b) Factors affecting the tax charge for the year
The tax assessed in each year differs from the standard rate of corporation tax in the UK for the relevant year.
The differences are explained below:
Group Group 
2002 2001
£m £m
Profit/(loss) on ordinary activities before tax 10.7 (121.0)
Profit/(loss) on ordinary activities at the standard UK tax rate of 30% 3.2 (36.3)
Different tax rate applicable overseas 0.7 1.1
Expenses not deductible for tax purposes 0.6 0.4
Goodwill amortisation and impairment not deductible for tax purposes 2.4 39.6
Timing differences relating to goodwill amortisation deductible – (0.3)
Utilisation of overseas losses – (3.0)
Overseas losses generated 0.5 3.0
Depreciation charges in excess of capital allowances – 0.3
Capital allowances in excess of depreciation (0.4)–
Other timing differences (1.1) (0.1)
Impact of adjustment to prior year current tax (0.8) (1.0)
Current tax charge for year 5.1 3.7
c) Factors that may affect future tax charges
The main factors that will impact future tax charges for the Group are:
i) The relative profitability and the differential in tax rates between the UK and the US, the two main territories in which the 
Group currently pays tax.
ii) The profitability of Mainland Europe where there are significant unrecognised tax losses.
49 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
8. Earnings per share
Basic earnings per share are calculated using the weighted average number of Ordinary shares outstanding during the year.
This was adjusted in 2001 to take into account the effect of the shares issued as a result of the Rights Issue 
in November 2001, which were issued at a discount to the market price. Diluted earnings per share have been calculated 
by taking into account the dilutive effect of shares that would be issued on conversion into Ordinary shares of options held
under employee share option schemes.
The adjusted earnings/(loss) per share removes the effect of the amortisation and impairment of intangible assets,
other operating income and refinancing costs from the calculation as follows:
2002 2001
Adjustments to profit/(loss) on ordinary activities after tax £m £m
Profit/(loss) on ordinary activities after tax 6.2 (123.3)
Add: amortisation and impairment of intangible assets 10.3 120.6
Less: other operating income (2.2) –
Add: refinancing costs – 3.8
Adjusted profit on ordinary activities after tax 14.3 1.1
2002 2001
Weighted average number of shares outstanding during the period: 
– basic 320,674,470 177,146,898
– dilutive effect of share options 1,818,424 4,542,560
– diluted 322,492,894 181,689,458
Basic earnings/(loss) per share (in pence) 1.9 (69.6)
Adjusted basic earnings per share (in pence) 4.4 0.6
Diluted earnings/(loss) per share (in pence)* 1.9 (69.6)
Adjusted diluted earnings per share (in pence) 4.4 0.6
The adjustments to profit have the following effects on EPS:
2002 2001
pence pence
Basic earnings/(loss) per share 1.9 (69.6)
Amortisation and impairment of intangible assets 3.2 68.1
Other operating income (0.7) –
Refinancing costs – 2.1
Adjusted basic earnings per share 4.4 0.6
Diluted earnings/(loss) per share 1.9 (69.6)
Amortisation and impairment of intangible assets 3.2 68.1
Other operating income (0.7) –
Refinancing costs – 2.1
Adjusted diluted earnings per share 4.4 0.6
*The share options do not have a dilutive effect where there is a loss.
50 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
9. Intangible fixed assets
Goodwill
Group £m
Cost 
At 1 January 2002 298.4
Exchange adjustments 0.9
At 31 December 2002 299.3
Amortisation
At 1 January 2002 (180.5)
Exchange differences 0.1
Charge for the year (10.3)
At 31 December 2002 (190.7)
Net book amount at 31 December 2002 108.6
Net book amount at 31 December 2001 117.9
The goodwill arising on acquisitions is being amortised on a straight line basis over the estimated useful economic lives 
of the acquired businesses, being in the range one to 20 years. These periods are the periods over which the Directors
estimate that the values of the underlying businesses acquired are expected to exceed the values of the underlying assets. 
During the year the Directors reviewed the estimated useful economic life of the goodwill relating to the magazines
acquired in Italy in 1999 and reduced the remaining useful life from 14 years to six years. The impact of the change was 
to increase the amortisation charge for the year by £1.3m.
10. Tangible fixed assets
Equipment,
Land and Plant and fixtures and
buildings machinery fittings Total
Group £m £m £m £m
Cost 
At 1 January 2002 2.3 5.0 2.8 10.1
Exchange adjustments – – (0.1) (0.1)
Additions –0.50.20.7
Disposals (0.4) (0.4) (0.5) (1.3)
At 31 December 2002 1.9 5.1 2.4 9.4
Depreciation
At 1 January 2002 (0.5) (3.2) (2.0) (5.7)
Exchange adjustments 0.1 (0.1) 0.1 0.1
Charge for the year (0.1) (1.0) (0.3) (1.4)
Disposals – 0.4 0.4 0.8
At 31 December 2002 (0.5) (3.9) (1.8) (6.2)
Net book value at 31 December 2002 1.4 1.2 0.6 3.2
Net book value at 31 December 2001 1.8 1.8 0.8 4.4
Analysis of net book value of land and buildings
Group Group
2002 2001
£m £m
Freehold – 0.4
Leasehold:
Over 50 years unexpired 1.4 1.4
Total 1.4 1.8
51 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
11. Investments
a) Fixed asset investments
2002 2001
Company £m £m
Shares in Group undertakings
At 1 January 20.8 43.5
Additions – 0.1
Disposals (0.6) –
Write down of fixed asset investments – (22.8)
At 31 December 20.2 20.8
As part of an internal reorganisation within the Group in 2002, the Company transferred its interest in a former 
intermediate holding company to a number of other Group companies.
Other investments
The Group has investments in Iconocast, Inc., a company incorporated in the USA, and FYI Limited, a company 
incorporated in the United Kingdom, in which the Group holds 24.9% and 30% respectively of the Ordinary share capital. 
These investments were accounted for as fixed asset investments. The Group’s interests have not been treated as 
associated undertakings as the companies are controlled by their majority shareholders and, in the opinion of the 
Directors, the Group does not, at present, exercise significant influence over their operations. 
The value of these investments was fully written down in 2001.
b) Current asset investments
Group Company Group Company
2002 2002 2001 2001
£m £m £m £m
Short-term bank deposits 6.2 6.2 3.5 3.0
Total 6.2 6.2 3.5 3.0
12. Stocks
Group Group
2002 2001
£m £m
Raw materials 1.1 1.3
Work in progress 1.9 1.9
Finished goods 0.6 0.3
Total 3.6 3.5
52 The Future Network plc Annual Report 2002  53 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
13. Debtors
Group Company Group Company
2002 2002 2001 2001
£m £m £m £m
Amounts falling due within one year:
Trade debtors 24.5 – 24.4 –
Amounts owed by Group undertakings – 157.8 – 129.5
Corporation tax recoverable 2.6 – 3.5 –
Other debtors 2.4 5.3 9.0 0.1
Prepayments and accrued income 3.0 – 4.6 –
32.5 163.1 41.5 129.6
Amounts falling due after more than one year:
Other debtors (note 17) 0.8 – 1.2 –
Total 33.3 163.1 42.7 129.6
14. Creditors: amounts falling due within one year
Group Company Group Company
2002 2002 2001 2001
£m £m £m £m
Bank and other borrowings –– 0.1 –
Trade creditors 14.3 – 16.6 –
Amounts owed to Group undertakings – 57.3 – 27.3
Corporation tax 4.0 – 0.6 –
Other creditors including taxation and social security 6.0 – 7.6 –
Accruals and deferred income 24.8 1.9 23.6 2.1
Deferred consideration for acquisitions 0.6 – 0.6 –
Total 49.7 59.2 49.1 29.4
15. Creditors: amounts falling due after more than one year
Group Company Group Company
2002 2002 2001 2001
£m £m £m £m
Bank and other borrowings –– 18.8 18.8
Shareholder loan (note 18) 1.8 – 1.9 –
Deferred consideration for acquisitions 0.7 – 1.1 –
Total 2.5 – 21.8 18.8 Notes to 
the financial
statements
16. Bank and other borrowings 
Group Company Group Company
2002 2002 2001 2001
i) Due within one year £m £m £m £m
Bank loans 
Unsecured –– 0.1 –
Total – – 0.1 –
Group Company Group Company
2002 2002 2001 2001
ii) Due after more than one year £m £m £m £m
Bank loans: Secured –– 18.8 18.8
Shareholder loan: Unsecured (note 18) 1.8 – 1.9 –
Total 1.8 – 20.7 18.8
The bank loans are secured by a fixed charge over The Future Network plc, Future Holdings 2002 Limited, Future Media 
Italy SpA, Future Network USA, Inc. and Future Publishing Limited’s land and buildings, intellectual property and goodwill 
and a floating charge over the remainder of their assets. 
The Company incurred total issue and facility costs in 1999 of £1,216,000 in respect of the post flotation bank loans 
of which facility costs of £687,000 were written off immediately to the profit and loss account in 1999. The remainder of 
the costs are being charged to the profit and loss account over the term of the facilities at a constant rate on the carrying
amount. The amounts are stated net of unamortised issue costs of £nil (2001: £0.1m).
The unsecured borrowings in 2001 were discounted bills, short-term bank overdrafts held by the Group and the
shareholder loan (note 18).
Further details of the Group’s borrowings are given in note 18.
17. Provisions for liabilities and charges
Property and
dilapidations Restructuring Total
Group £m £m £m
At 1 January 2002 4.0 0.6 4.6
Exchange adjustment (0.1) – (0.1)
Charge in year 0.2 0.2 0.4
Utilised in year (1.4) (0.6) (2.0)
Amortisation of discount 0.2 – 0.2
At 31 December 2002 2.9 0.2 3.1
The Company had no provisions for liabilities and charges at 31 December 2002 (2001: £nil).
Group Group
2002 2001
Deferred tax £m £m
At 31 December 2002 a deferred tax asset has been recognised within other debtors as follows:
Amounts falling due within one year 0.8 –
Amounts falling due after more than one year 0.8 1.0
Total 1.6 1.0
The recognised deferred tax asset relates to timing differences at 31 December 2002 which are considered more likely 
than not to reverse in the forseeable future and are split as follows:
Group Group
2002 2001
£m £m
Capital allowances 0.7 0.3
Other short-term timing differences 0.9 0.7
Total 1.6 1.0
54 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
17. Provisions for liabilities and charges continued
The movement on deferred taxation in the year is as follows:
Group Group
2002 2001
£m £m
As at 1 January 1.0 (0.4)
Current year credit 0.8 0.7
Prior year (charge)/credit (0.2) 0.7
At 31 December 1.6 1.0
The unrecognised amounts of deferred taxation assets are as follows:
Group Group
2002 2001
£m £m
Capital allowances 0.5 0.4
Other 8.7 11.9
Total 9.2 12.3
Other deferred tax assets not recognised include £6.4m (2001: £7.5m) in respect of overseas tax losses carried forward.
The balance is in respect of other short-term timing differences which are considered unlikely to reverse in the 
foreseeable future.
The Company has no unprovided deferred taxation liabilities at 31 December 2002 (2001: £Nil).
Vacant property and dilapidations
Following the reorganisations and significant downsizing which took place in 2001, the Group has obligations under short
leasehold agreements on a number of vacant properties. The provision made represents the following:
a) The best estimate of the discounted future net cash flow arising from the net shortfall on each of the leases held.
b) The best estimate of dilapidation obligations on termination of specific leasehold agreements.
At 31 December 2002 the total amount of the provision was £2.9m (2001: £4.0m). The leases against which the 
provisions have been made will terminate by December 2017. The provisions have been discounted at a rate in line 
with the Group’s cost of capital.
Restructuring 
The restructuring provision at 31 December 2001 related to costs still to be incurred in respect of redundancies and 
other closure costs at the Group’s French subsidiary. A restructuring plan was announced in December 2001 and the
redundancies occurred between January and March 2002. The restructuring provisions as at 31 December 2002 relate 
to ongoing restructuring at the Group’s Italian subsidiary.
55 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
18. Financial instruments
a) Treasury overview
The Group uses financial instruments to raise funding for its operations and to manage the financial risks arising 
from those operations. The agreements governing the principal instruments entered into were approved by the Board.
At the year end, the Group’s principal financial liabilities comprised £1.8m (2001: £1.9m) in respect of a loan made
to Future Network USA, Inc. prior to the Company acquiring Future Network USA, Inc. in June 1999, £1.3m (2001: £1.7m);
deferred consideration payable for acquisitions and £2.9m (2001: £4.0m) for property and dilapidations provisions. The
Group had no financial liabilities under its committed revolving multi-currency facility (2001: £18.8m). The Group also has
no drawings outstanding under short-term overdraft facilities at the year end (2001: £0.1m). 
At the year end, the Group’s financial assets comprised cash of £12.4m (2001: £9.5m) and short-term deposits 
of £6.2m (2001: £3.5m). 
The Directors have considered the principal risks arising from the Group’s financial instruments and have mitigated 
them as follows:
Credit risk 
The Group has a number of authorised counterparties with whom cash balances are held in the countries in which the Group
operates. The Group’s aim to minimise credit risk is achieved by considering the credit standing of potential bankers before
selecting them. A review has been carried out during the year and changes have been made in two of the Group’s operating
subsidiaries as a result.
Liquidity risk 
The aim of the Group’s liquidity policy is to provide flexibility. The Group currently has positive cash balances and a facility 
of up to £28m.
Market price risk 
The Group had disposed of the majority of its fixed asset investments as at 31 December 2001. Details of the remaining
fixed asset investments are set out in note 11.
Interest rate risk 
In May 2002 the Group paid down the remaining debt outstanding under its committed revolving multi-currency facility, 
and since that date has had net cash balances. To the extent that debt funding is required going forward, the Board has 
adopted the following policy:
• To the extent that net debt remains below £10m there is no requirement to hedge against interest rate fluctuations 
on the balance of the gross debt.
• To the extent that net debt rises above £10m then a minimum of 25% of the balance of the gross debt and a maximum 
of 50% of the balance of the gross debt should be hedged.
In applying the above policy, management will take full consideration of cashflow projections to fix the period for which any
hedging arrangements are entered into.
Currency risk
A proportion of the Group’s activities are carried out in countries outside the United Kingdom where transactions are carried
out in that country’s own functional currency. Movements in exchange rates can therefore have a significant impact on the
Group’s total cash flows, whilst the translation of the results, assets and liabilities of foreign subsidiaries into sterling can
have a significant effect on the Group’s reported profits and balance sheet. The main exposures are to movements in the
US Dollar and Euro against Sterling.
Exchange differences arising from the retranslation of the overseas net investments, including goodwill and any related
loans, together with the related tax effect are dealt with as movements in reserves and in the statement of total recognised
gains or losses to the extent permitted under SSAP20. Other exchange differences are taken to the profit and loss account.
b) Short-term debtors and creditors
Trading short-term debtors and creditors have been excluded from all the following disclosures, other than the currency 
profile of monetary assets and liabilities (table g).
56 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
18. Financial instruments continued
c) Interest rate risk profile of financial liabilities
The interest rate profile of the Group’s financial liabilities at 31 December 2002, after taking into account the effect 
of interest rate swaps, was:
Non-interest- Floating rate Fixed rate
bearing financial financial financial
Total liabilities liabilities liabilities
Currency £m £m £m £m
Sterling 1.2 1.0 0.2 –
US Dollars 3.5 – 1.7 1.8
Euro 1.3 – 1.3 –
At 31 December 2002 6.0 1.0 3.2 1.8
Currency
Sterling 11.0 – 11.0 –
US Dollars 4.9 – 3.0 1.9
Euro 10.6–10.6–
At 31 December 2001 26.5 – 24.6 1.9
The floating rate financial liabilities include bank borrowings (in 2001 only), and deferred consideration, of which the 
bank borrowings interest at rates fixed in advance for a period of between one and three months by reference to LIBOR 
(in the case of Sterling and US Dollar borrowings) and EURIBOR (in the case of liabilities denominated in currencies linked 
to the Euro) plus a margin of 2.75%.
The deferred consideration in respect of the Italian acquisition has been discounted at a rate linked to EURIBOR. 
Floating rate financial liabilities also include property and dilapidations provisions (see note 17) which are discounted 
at rates in line with the Group’s cost of capital and discounted bills and short-term overdraft facilities (2001 only) which 
bear interest at rates linked to EURIBOR.
The fixed rate financial liability reflects the shareholder loan (from Chris Anderson, a former Director), which is
denominated in US Dollars and bears interest at 7% per annum.
Fixed rate financial liabilities
Weighted average period
Weighted average interest rate for which rate is fixed
Currency % Years
US Dollars 7.00 2
The shareholder loan is repayable when certain employee share options are exercised.The weighted average period until
maturity and the maturity of debt are based on the earliest date on which the options are capable of being exercised, being
the best estimate of this information.
d) Interest rate risk profile of financial assets 
The Group’s financial assets comprise cash held by Group companies at 31 December 2002. Their interest 
rate profile at 31 December 2002 was:
Short-term Cash at bank 2002 Short-term Cash at bank 2001
deposits and in hand Total deposits and in hand Total
Currency £m £m £m £m £m £m
Sterling 6.2 7.3 13.5 3.5 6.3 9.8
US Dollars – 3.0 3.0 – 1.4 1.4
Euro – 2.0 2.0 – 1.6 1.6
Other – 0.1 0.1 – 0.2 0.2
At 31 December 6.2 12.4 18.6 3.5 9.5 13.0
Non interest bearing – 4.3 4.3 – 1.1 1.1
Floating rate 6.2 8.1 14.3 3.5 8.4 11.9
At 31 December 6.2 12.4 18.6 3.5 9.5 13.0
No weighted average information has been disclosed for the non-interest bearing assets above as they have no maturity
dates. The floating rate assets represent monies on overnight deposit at rates linked to LIBID or local equivalents.
57 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
18. Financial instruments continued
e) Maturity analysis of financial liabilities 
The maturity profile of the carrying value of the Group’s financial liabilities at 31 December 2002 was as follows:
Other Other
Deferred financial 2002 Deferred Financial 2001
Debt consideration liabilities Total Debt consideration Liabilities Total
£m £m £m £m £m £m £m £m
Within one year, 
or on demand – 0.6 1.6 2.2 0.1 0.6 1.6 2.3
Between one and 
two years 1.8 0.7 0.6 3.1 – 0.6 1.1 1.7
Between two and 
five years – – 0.6 0.6 20.7 0.5 1.3 22.5
Over five years – – 0.1 0.1 ––––
Total 1.8 1.3 2.9 6.0 20.8 1.7 4.0 26.5
Deferred consideration of £1.3m (gross of unamortised discount arising from fair valuing of the deferred consideration)
is repayable within the next two years.
f) Maturity analysis of undrawn committed borrowing facilities
The maturity profile of those elements of the Group’s committed borrowing facilities, all of which are at floating rates
and were undrawn at 31 December 2002, is:
2002 2001
Total Total
£m £m
Expiring within one year – 0.1
Expiring between one and two years – –
Expiring in more than two years 28.0 10.1
Total 28.0 10.2
The amounts shown above are those that would be available after taking into account covenants given in respect of the
Group’s financial condition. Availability of these funds is subject to covenants to be met at the time of drawdown and
maintained until repayment.
g) Currency risk disclosure
The table below shows the extent to which Group companies have monetary assets and liabilities in currencies other than
their local currency. Foreign exchange differences on retranslation of these assets and liabilities are taken to the profit 
and loss account of the Group companies. At the Group level they may be taken to reserves and used to offset exchange
gains/losses on the net investments in subsidiary companies overseas.
Net foreign currency monetary assets/(liabilities)
Other
Sterling US Dollars Euro currencies Total
2002 £m £m £m £m £m
Functional currency of Group operation:
Sterling – (24.3) 5.6 1.4 (17.3)
US Dollars (0.1) – – 0.4 0.3
Euro (2.1) (0.1) – – (2.2)
Total (2.2) (24.4) 5.6 1.8 (19.2)
2001
Sterling – (22.9) 1.2 1.8 (19.9)
US Dollars (1.6) – – – (1.6)
Euro (6.4) (0.1) – (0.4) (6.9)
Total (8.0) (23.0) 1.2 1.4 (28.4)
58 The Future Network plc Annual Report 2002  Notes to 
the financial
statements
18. Financial instruments continued
h) Fair values of financial assets and liabilities
The following table provides a comparison by category of the carrying amounts and the fair values of the Group’s financial
assets and financial liabilities at 31 December 2002. Fair value is the amount at which a financial instrument could be
exchanged in an arm’s length transaction between informed and willing parties, other than a forced or liquidation sale 
and excludes accrued interest. Where available, market values have been used to determine fair values.
2002 2002 2001 2001
Book value Fair value Book value Fair value
£m £m £m £m
Primary financial instruments held or 
issued to finance the Group’s operations
Assets:
Fixed asset investments –– – 0.1
Short-term deposits 6.2 6.2 3.5 3.5
Cash at bank and in hand 12.4 12.4 9.5 9.5
Liabilities:
Debt 1.8 1.8 20.9 20.9
Deferred consideration 1.3 1.3 1.9 1.9
Other financial liabilities 2.9 2.9 4.0 4.0
Derivative financial instruments held to 
manage the interest rate and currency profile:
Interest rate swaps –– (0.8) (0.8)
Long-term borrowings at book value are shown above gross of £nil unamortised issue costs (2001 : £0.1m).
The fair value of the fixed asset investments reflects the market value of the shares at the balance sheet date.
i) Hedges
During 2002 the Group had no unrecognised gains or losses on hedges in respect of either interest rates or currencies. 
19. Called up share capital
Authorised share capital 
2002 2001
Ordinary shares of 1 pence each £m £m
At 1 January 6.0 2.5
Increase in year – 3.5
At 31 December 6.0 6.0
Allotted, issued and fully paid
Number 2002
Ordinary shares of 1 pence each of Shares £m
At 1 January 318,992,442 3.2
Share Options Exercised 2,118,165 –
At 31 December 321,110,607 3.2
During the year 2,118,165 Ordinary shares were issued by the Company for a cash commitment of £21,182 pursuant 
to the exercise of share options as explained in note 20.
59 The Future Network plc Annual Report 2002  60 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
20. Share options
The Future Network plc operates 10 share option schemes being:
• The Future Publishing Holdings Limited Unapproved Share Option Plan (‘Future Publishing Holdings Plan’) 
• The Future Network plc 1999 Stock Option Plan for Imagine Employees (‘1999 US Plan’) 
• The Future Network plc 1999 International Share Option Scheme (‘International Scheme’)
• The Future Network plc 1999 Senior Management Scheme (‘Senior Scheme’)
• The Future Network plc 1999 Approved International Share Option Scheme (‘Approved Scheme’)
• The Future Network plc 2000 US Stock Option Plan (‘2000 US Plan’)
• The Future Network plc International Sharesave Scheme (‘International Sharesave Scheme’)
• Addendum to the Future Network plc International Sharesave Scheme (‘Addendum’)
• The Future Network plc UK Inland Revenue Approved Sharesave Plan 2000 (‘Sharesave Plan’)
• The Future Network plc Employee Benefit Trust
As at 31 December 2002, options had been granted under all of the above schemes except for The Future Network plc
Employee Benefit Trust.
The Future Publishing Holdings Plan
The Future Publishing Holdings Plan was used to grant options to employees who were employed by Future Publishing
Holdings Limited and its subsidiaries. There are no performance criteria attached to options granted under this plan. 
Since Listing of the Company, no new options have been granted under this plan. 
The 1999 US Plan
Under the Imagine Media, Inc. (now Future Network USA, Inc.) Acquisition Agreement in June 1999, stock option and 
stock appreciation rights holders’ interests in Future Network USA, Inc. capital were converted into new options under 
a new stock option plan (‘1999 US plan’). All options and stock appreciation rights to purchase shares in the Common 
stock of Future Network USA, Inc. were converted automatically (subject to certain conditions) into options to purchase
Ordinary shares in the Company and the Company has assumed all obligations subject to the 1999 US Plan. Conversion
was essentially on the same terms and conditions as those prescribed under the original plans, including vesting criteria.
There are no performance criteria attached to options granted under this plan.
The International Scheme
The International Scheme is used for the grant of options to all employees, save for those persons entitled to participate in 
the Senior Scheme. 
Options granted under this scheme up until 2 May 2001 vest in eight equal tranches, one tranche every six months
following publication of the annual and interim results of the Group, subject to the satisfaction of performance criteria that
require the normalised earnings per share of the Group to grow by at least 3% per annum above the increase in the Retail
Prices Index over the relevant period. For the six month period ended 31 December 2002 the performance criteria have
been met. On a cumulative basis performance criteria have now also been met for the six month periods ended 30 June
2001, 31 December 2001 and 30 June 2002.
Options granted on 19 November 2001, 22 April 2002 and 25 September 2002 under the International Scheme 
will all vest three years after the date of grant, subject to satisfaction of performance criteria that require that total
shareholder return of the Company, for the three year period following date of grant, must rank in the top quartile of
companies whose shares are listed in the Media and Entertainment Sector of the London Share Service of the Financial
Times newspaper. If the Company ranks in the second quartile of this comparator group, then only one half of the options
will vest; if the Company ranks below the 50th percentile of this comparator group, then none of the options will vest. 61 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
20. Share options continued
The Senior Scheme
The Senior Scheme is used for the grant of options to the Board. Details of options outstanding under this scheme and 
the performance criteria relating to these options are given in the remuneration report on pages 27 to 32. 
The Approved Scheme
The Approved Scheme is used for the grant of options to all eligible UK employees up to a value of £30,000.
Options granted under this scheme up until 2 May 2001 vest in eight equal tranches, one tranche every six months
following publication of the annual and interim results of the Group, subject to the satisfaction of performance criteria that
require the normalised earnings per share of the Group to grow by at least 3% per annum above the increase in the Retail
Prices Index over the relevant period. For the six month period ended 31 December 2002 the performance criteria have
been met. On a cumulative basis performance criteria have now also been met for the six month periods ended 30 June
2001, 31 December 2001 and 30 June 2002.
Options granted on 19 November 2001 and September 2002 under the Approved Scheme will all vest three years after
the date of grant, subject to satisfaction of performance criteria that require that total shareholder return of the Company,
for the three year period following date of grant, must rank in the top quartile of companies whose shares are listed in the
Media and Entertainment Sector of the London Share Service of the Financial Times newspaper. If the Company ranks in the
second quartile of this comparator group, then only one half of the options will vest; if the Company ranks below the 50th
percentile of this comparator group, then none of the options will vest.
The 2000 US Plan
The 2000 US Plan, which was adopted at the Company’s first Annual General Meeting held on 21 June 2000, is used for 
the grant of options to employees of the Company’s US business.
Options granted under the 2000 US Plan up until 2 May 2001 typically vest 25% of the shares under option on the first
anniversary of an employee joining (or, where options are granted under the 2000 US Plan to an existing employee, on the
anniversary of the grant of such options).
The balance of 75% will vest in equal monthly tranches over the three-year period commencing on the first vesting 
date. Whilst the Company had the right to impose performance conditions up until 19 November 2001, none was imposed
as it was the Board’s view that it was unusual for options granted by US competitors to their US employees to contain 
such criteria.
Options granted on 19 November 2001 under the 2000 US Plan will all vest three years after the date of grant, subject 
to satisfaction of performance criteria that require that total shareholder return of the Company, for the three-year period
following date of grant, must rank in the top quartile of companies whose shares are listed in the Media and Entertainment
Sector of the London Share Service of the Financial Times newspaper. If the Company ranks in the second quartile of this
comparator group, then only one half of the options will vest; if the Company ranks below the 50th percentile of this
comparator group, then none of the options will vest.
The Sharesave Plan, International Sharesave Scheme and the Addendum (the Sharesave Plans)
Under the Sharesave Plans the option entitlement is linked to the monthly contributions which employees have agreed to
pay into the Sharesave Plans (up to a maximum amount of £250 per month). The options granted under the Sharesave
Plans vest on the third anniversary of the grant of such options (or in the case of the Addendum applicable in the US, due 
to legal constraints, two years after the date of grant of such options). Where legal and regulatory constraints permit, the
Company uses its discretion to offer options granted under the Sharesave Plans at a discount to the market price in force 
at the date of the invitation being made.
The Board exercised its discretion on 5 September 2002 to issue invitations to participate in the Company’s Sharesave
Plans to eligible employees in the UK only. The option price represents a 20% discount to the market price at the time of 
the invitation. 62 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
20. Share options continued
The following options and conditional awards over Ordinary shares have been granted and are outstanding at 
31 December 2002:
Number Exercisable
of shares not earlier 
Grant date under option Exercise price than
Future Publishing Holdings Plan
July 1998 502,918 £0.028 Jun 1999
April 1999 260,481 £0.216 Jun 1999
1999 US Plan
June 1999 2,208,497 $0.309–$6.544 Jun 1999
June 1999 311,828 £0.01 Jun 1999
International Scheme (excluding US)
June 1999 548,929 £3.617 Mar 2000
April 2000 31,654 £6.846–£7.647 Mar 2001
May 2001 26,182 £0.747 Mar 2002
November 2001 431,700 £0.470 Nov 2004
April 2002 304,000 £0.650 Apr 2005
September 2002 136,171 £0.470 Sep 2005
International Scheme (US)
September 1999 2,899 $9.722 Sep 2000
October 1999 3,311 $10.990 Oct 2000
November 1999 641 $12.156 Nov 2000
December 1999 928 $12.932 Dec 2000
January 2000 1,529 $12.812 Jan 2001
Senior Scheme
November 2001 1,108,510 £0.470 Nov 2004
Approved Scheme
April 2000 44,162 £6.848 Mar 2001
May 2001 52,145 £0.747 Mar 2002
November 2001 2,430,290 £0.470 Nov 2004
September 2002 63,829 £0.470 Sep 2005
2000 US Plan
July 2000 29,453 $11.202 Jul 2001
August 2000 2,010 $12.676 Aug 2001
September 2000 2,049 $10.149 Sep 2001
October 2000 2,808 $8.045 Oct 2001
November 2000 737 $6.101 Nov 2001
December 2000 2,660 $2.426 Dec 2001
April 2001 532 $1.201 Apr 2002
November 2001 860,000 £0.470 Nov 2004
Sharesave Plan
October 2000 6,774 £5.390 Dec 2003
May 2001 549,695 £0.545 Jul 2004
December 2001 1,200,500 £0.380 Feb 2005
October 2002 368,550 £0.500 Dec 2006
Addendum, International Sharesave Scheme
October 2000 510 $6.8555 Jul 2004
April 2001 10,846 $1.0795 Feb 2005
Total options outstanding at 31 December 2002 11,507,728
Of the 11,507,728 options (2001: 14,600,271) outstanding at 31 December 2002, 6,037,572 (2001: 6,636,618) 
are subject to performance criteria. During the year options were granted over 872,550 shares, 2,118,165 options 
were exercised and 1,846,928 options lapsed. 63 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
21. Share premium account
2002 2001
Group and Company £m £m
At 1 January 169.6 137.8
Premium on shares issued during the year – 0.6
Premium on shares issued at Rights Issue – 32.9
Write off of costs associated with the Rights Issue – (1.7)
At 31 December 169.6 169.6
22. Profit and loss account
Group Company
£m £m
At 1 January 2002 – deficit (197.6) (89.0)
Net exchange adjustments offset in reserves 0.4 –
Tax on exchange adjustments offset in reserves (0.6) –
Profit for the financial year 6.2 30.3
At 31 December 2002 – deficit (191.6) (58.7)
The Directors have taken advantage of the exemption available under section 230 of the Companies Act 1985 and have not
presented a profit and loss account for the Company alone.
23. Other reserves
Group Group Company
Merger Other Group Other
reserve reserves Total reserves
£m £m £m £m
At 1 January 2002 109.0 21.8 130.8 21.8
At 31 December 2002 109.0 21.8 130.8 21.8
24. Pensions
The Group operates a defined contribution scheme for employees resident in the United Kingdom.
In the US the Group operates a Section 401(K) profit sharing defined contribution plan in respect of pensions, which
covers substantially all Future Network USA employees. The section 401(K) plan allows employees to invest in eight funds
run by T. Rowe Price, but the employees, not the employer, have complete control over what funds they invest in, although
they have no control over the stocks owned by the funds. 
During the year £0.6m (2001: £0.6m) contributions were made by the Group to these plans. 64 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
25. Commitments and contingent liabilities
a) Operating lease commitments
At 31 December 2002 the Group had annual commitments under non cancellable operating leases as set out below:
Land and 2002 Land and 2001
Buildings Other Total Buildings Other Total
£m £m £m £m £m £m
Annual commitments under 
non-cancellable operating 
leases expiring:
Within one year 0.1 0.2 0.3 0.1 0.2 0.3
Within two to five years 2.6 0.3 2.9 2.6 0.3 2.9
After five years 1.6 – 1.6 1.4 – 1.4
4.3 0.5 4.8 4.1 0.5 4.6
b) Contingent liabilities
At 31 December 2002, the Company had contingent liabilities outstanding in respect of counter-indemnities £1.3m 
(2001: £1.9m) and guarantees given by it to the Group’s bankers in respect of amounts outstanding from its subsidiaries
under the Group bank facility arrangements.
A number of trading subsidiaries are defendants in various legal actions. In the opinion of the Directors, 
after taking appropriate legal advice, the outcome that such actions would give rise to a significant loss is 
considered remote. 
c) Capital commitments
There were no material capital commitments as at 31 December 2002.
26. Related party transactions
a) Purchase Option Deed
At the time of the acquisition of Future Network USA, Inc. (formerly Imagine Media), in June 1999 a number of institutional
investors transferred for nil consideration, 4,025,644 Ordinary shares of the Company, to an escrow agent. Each of the
institutional investors further granted an option to the then executive Directors conditional upon the aggregate value of the
Ordinary shares calculated over the period 1 January 2000 to 31 March 2000 exceeding a target market capitalisation
value of £611,000,000 and exercisable on or before 31 May 2000, to acquire all or a proportion of the shares held in
escrow (‘Earnout Shares’) for nil consideration.
The executive Directors concerned agreed to indemnify the Company and Future Network USA, Inc. in respect of any
taxation suffered or incurred by either of them as a result of this agreement.
As the target market capitalisation was achieved, all 4,025,644 Ordinary shares were held by the escrow agent for the
executive Directors concerned. 
Both Chris Anderson and Ian Linkins (former directors of the Company) exercised their option to acquire the Earnout
Shares held in escrow for nil consideration during the year 2001 and Greg Ingham exercised his option in October 2002 
(see Directors’ report on page 24).
b) Intra-Group transactions
Exempt transactions
Transactions with those subsidiary undertakings where 90% or more of their voting rights are controlled within the Group,
and transactions that are eliminated on consolidation, are not disclosed as provided for in FRS8: ‘Related Party Disclosures’ .
27. Post balance sheet events
The Company announced on 11 March 2003 that it had agreed to purchase a subsidiary of Hachette Filipacchi Presse S.A. 
in France, Hachette Digital Presse S.A. for £3.5m payable in cash, which will be met from the Group’s existing cash resources. 65 The Future Network plc Annual Report 2002 
Notes to 
the financial
statements
28. Principal subsidiary undertakings 
The principal subsidiary undertakings are shown below. A full list of subsidiaries is available at the Company’s registered
office and all subsidiaries are included in the consolidation. Shares of those companies marked with an * are indirectly
owned by The Future Network plc through an intermediate holding company.
Company name Country of Incorporation Nature of business Holding % Class of shares
Subsidiaries
Future Publishing Limited* England and Wales Magazine publishing 100 £1 Ordinary shares
FXM International Limited England and Wales Magazine publishing 100 £1 Ordinary shares
Future Network USA, Inc 
(formerly Imagine Media, Inc.). USA (State of California) Magazine publishing 100 Not applicable
Future France SA* France Magazine publishing 100 €15.25 Ordinary shares
Future Media Italy SpA* Italy Magazine publishing 100 €0.51 Ordinary shares 66 The Future Network plc Annual Report 2002 
Shareholder
information
Annual timetable
Analysis of Ordinary shareholders as at 31 December 2002:
Percentage Number of Percentage
Number of of total shares of issued
Range of holdings shareholders shareholders ’000 share capital
1–500 650 26.86% 161,582 0.05%
501–1000 380 15.70% 287,416 0.09%
1001–10,000 1,018 42.07% 3,020,146 0.94%
10,001–100,000 183 7.56% 6,351,596 1.98%
100,001 and over 189 7.81% 311,289,867 96.94%
Total 2,420 100.00% 321,110,607 100.00%
Shareholders should contact the Registrars, Lloyds Registrars plc, in connection with changes of address, lost share
certificates and transfer of shares. The share register is by law a public document. To limit the receipt of mail from other
organisations, please write to Mailing Preference Services, Freepost 22, London W1E 7EZ.
For enquiries of a general nature regarding the Company and for Investor Relations enquiries please contact Terri Davey at
the Group registered office.
Financial year end 31 December 2002
Announcement of full-year results 11 March 2003
Annual Report mailed to shareholders 11 April 2003
Annual General Meeting 15 May 2003
Half-year end 30 June 2003
Half-year results announced September 2003
Half-year results mailed to shareholders September 2003 67 The Future Network plc Annual Report 2002 
Registered office
and advisers
Registered office and Group headquarters
The Future Network plc
Beauford Court
30 Monmouth Street
Bath
BA1 2BW
www.thefuturenetwork.plc.uk
Company registration number 3757874
Auditors
PricewaterhouseCoopers LLP
31 Great George Street
Bristol BS1 5QD
Brokers
UBS Warburg
1 Finsbury Avenue
London EC2M 2PP
Investment bankers
Morgan Stanley
25 Cabot Square
Canary Wharf
London E14 4QA
Principal bankers
BNP Paribas
10 Harewood Avenue
London NW1 6AA
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex
BN99 6DA
Solicitors
SJ Berwin 
222 Grays Inn Road
London
WC1X 8XF The following is a list of companies currently included in 
the Media and Entertainment Sector Index (UK companies).
Reference is made to this list in the remuneration report
on page 29.
Aegis Group
Bloomsbury Publishing
British Sky Broadcasting
Capital Radio
Carlton Communications
Chrysalis Group
Cordiant Communications
Daily Mail ‘A’
Emap
EMI Group
Euromoney Institutional Investor
The Future Network
Granada
GWR Group
Highbury House Communications
HIT Entertainment
Incepta
Informa Group
ITE Group
Johnston Press
Maiden
Metal Bulletin
Pearson
Photo-Me Intl.
Reed Elsevier
Reuters Group
Sanctuary Group
Scottish Radio Holdings
SMG
St. Ives
Taylor and Francis
Taylor Nelson Sofres
Television Corp.
Trinity Mirror
Ulster TV
United Business Media
Wilmington
WPP Group
Wyndeham Press Group
68 The Future Network plc Annual Report 2002 
FTSE Media and
Entertainment
Sector Index
(UK companies) The white paper used in this report
has been manufactured using totally
chlorine free pulp. The blue paper is 
an Elemental Chlorine Free (ECF)
grade. Both papers have been sourced
from sustainable forest reserves.
Designed and produced by 
williams and phoa, printed in the UK. The Future Network plc
Beauford Court
30 Monmouth Street
Bath BA1 2BW
United Kingdom
Tel: +44 (0)1225 442244
www.thefuturenetwork.plc.uk