2016 16 Hal alf-ye year ar resu sults lts presen sentat tation ion 19 May 2016 Andrew Rashbass, CEO
Cont ntext xt Weak first half – the run- off of “operational deficit” last year and first quarter of this combined with difficult market conditions in some of our sectors Early signs of the positive impact the strategy will have Full-year performance in line with expectations Page 2
Recap: ap: how we th thin ink k ab about ut th the bu busi sine ness: ss: four ur qua uadran ants ts + • Protect and enhance competitive position • Careful, selective investment for when the • New product development Batten cycle turns down the Invest • Sales and marketing • Tight cost control hatches • Acquisition • Fix any operational deficit • Fix any operational deficit • Opportunistic on revenue opportunities Cycle - + Structure • Maximise shorter-term profit and cash • Modest investment to move to top-right quadrant above Use the • Divest Disinvest • Maximise shorter-term profit and cash time wisely • Prevent future build-up • Fix any operational deficit • Consider divestment - Page 3
Three e pil illa lars rs of st strat ategy egy Invest est around nd Transform sform Actively vely big theme mes the e operati rating ng manage ge the e model el portfoli tfolio Page 4
Inv nvest sting ing ar aroun und bi big th themes mes • Asset management 1. • Price discovery 2. • Other potential growth engines 3. Page 5
A ne new operat rating ing mo model el – fix ixin ing g th the operational rational deficit icit Entrep epren eneu euria ial Cor orporate porate Closeness to customers Scale Passion for brand Best practice Knowledge of products Talent management Accountability for top line and profits Strategic But ut But ut Sub-scale Distant from customers Limited sharing of best practice Slow Finite career prospects Expensive Unstrategic Brand blancmange Page 6
Active tive portfol tfolio io ma mana nagemen ment New Existing FY14/FY15 Disinvest Batten down Use the Invest, Achievable Invest, Achievable growth the hatches time wisely Organic organic Acquisitions growth (underlying) growth Lower margin Margin-enhancing Higher margin Lower quality Improving quality High quality Page 7
ons Fir irst st hal alf – qua uadran rant t proporti portion + FY 2015 H1 2016 FY 2015 H1 2016 proportion proportion proportion proportion Batten 18% 64% 16% 59% down the Invest hatches Cycle - + Structure Use the 12% 6% 16% 9% Disinvest time wisely - Source: Euromoney management accounts Page 8 Note: Proportion of revenues based on reported revenues.
(decline) Fir irst st hal alf – growth wth/(decline + FY 2015 H1 2016 FY 2015 H1 2016 growth growth growth growth Batten (9%) +2% (4%) +4% down the Invest hatches Cycle - + Structure Use the (27%) (5%) (15%) (5%) Disinvest time wisely - Source: Euromoney management accounts Page 9 Note: Growth represents underlying revenue growth, excluding the impact of acquisitions, disposals, currency movements and event timing differences.
Looking king forwar ard Early signs of the positive impact the strategy will have Page 10
Deal alin ing g wit ith th the drag ag from m th the bo bott ttom om le left Still to be addressed 15% Add ddressin ressing Add ddressed essed 22% 22% 63% 63% Page 11
So Sorti ting ng th the operationa ational l deficit icit BCA book of business Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2014 2015 2016 Page 12
So Sorti ting ng th the operationa ational l deficit icit NDR book of businesses Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2014 2015 2016 Page 13
Not there with everything with subs but … Total book of business at constant GBP/US$ rate Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2014 2015 2016 1) Excludes grace revenues Page 14
2016 16 Hal alf-ye year ar resu sults lts presen sentat tation ion 19 May 2016 Colin Jones, Finance Director
shot 1 Hal alf-yea year r resu sult lts s sn snap apshot £m 2014 2015 2016 2016 Chan ange ge Revenue 195.8 197.7 194. 19 4.2 -2% Adjusted PBT 1 53.4 53.4 46.9 46 -12% Statutory PBT 1 42.8 93.3 23.4 23 -75% Adjusted EPS 1 32.0p 34.1p 29 29.9p 9p -12% Dividend 7.00p 7.00p 7.00 7. 00p = Net (debt)/cash (28.6) (10.6) 55.9 55 1. As reconciled in appendix to Interim Financial Report Page 16
Key y me mess ssages ages Underlying 1 revenues (excl timing) down 6%, in line with trend and expectations Q2 subscription revenue growth close to zero – expected to be low point Adjusted operating margin down 1.4% points to 24.1% Revenue and margin declines largely due to disinvest quadrant – strategy addresses these challenges Favourable US$ throughout period Adjusted PBT down 12% to £46.9m Strong operating cash conversion and £56m net cash at March 31 Post March 31 disposal of Gulf/PE for $18m H2 performance expected to be similar to last year’s 1. Excludes acquisitions/disposals and at constant exchange rates Page 17
St Stat atut utory ry nu numb mbers, s, cas ash flo low & ba bala lanc nce sheet et Statutory profit £23.4m vs Adjusted PBT £46.9m 1 Exceptional items – Indaba impairment £12.9m 1 Underlying tax rate 19% consistent with 2015 1 Unchanged interim dividend of 7p Strong cash flows (see waterfall) Underlying cash conversion 114% (2015: 105%) 1 Deferred subscription revenue up 1% 1 1. See appendix for further details Page 18
St Strong ng cas ash flo lows s in in th the fir irst st hal alf 49.7 55.9 t (£m) ement Cash Movemen 14.4 21.1 17.7 2.9 6.5 1.0 3.6 Net c et cas ash a at Capex Ca ex M& M&A Di Divid idend ends FX/Other er Net ta et tax Wor Workin king ca g capital ital Opera Op erati ting ng c cash Net c et cas ash a at Sept 3 Sept 30 2 0 201 015 infl in flow Mar Mar 31 31 20 2016 16 Page 19
Active tive portfol tfolio io ma mana nagemen ment Net cash at March 31 £56m Net cash at April 30 £76m…. …. including proceeds from sale of Gulf/PE 1 $160m borrowing facility, due to expire in April 2016, extended to November 2018 …. …. provides significant acquisition firepower No imminent disposals but further active portfolio management expected in H2 1. See appendix for further details Page 20
Operating ating su summ mmar ary £m 2014 2014 2015 2015 2016 2016 Chan ange ge Revenue 195.8 197.7 19 194. 4.2 -2% Adjusted operating profit 1 54.2 50.5 46 46.8 -7% Adjusted PBT 53.4 53.4 46 46.9 -12% Operating margin 27.7% 25.5% 24 24.1% 1% -1.4% 1. As reconciled in appendix to Interim Financial Report Page 21
Reve venu nue e by t y typ ype - hig ighli hlights ghts im impac act t of dis isin invest vest quad adran rant Underlying 1 Underlying 1 £m 2015 2015 2016 2016 Reported excl timing Subscriptions 103.6 109.3 +6% +1% +1% Advertising 20.0 -13% 18.4 -8% -13% Sponsorship 26.3 25.5 -3% -8% -8% Delegates 39.0 -17% 37.1 -5% -6% Other 6.3 5.2 -17% -19% -19% Sold business 1.5 - - - - FX 1.0 (1.3) - - - Total 197.7 194.2 -2% -4% -6% 1. Excludes acquisitions/disposals and at constant exchange rates Page 22
ying 1 excl ted Revenue enue ch change ange (underl nderlyin cl tim imin ing) ) – H1 1 fol ollo lows ws 2015 015 H2 2 tre rend, nd, as expec pected Y-o-Y % change 2015 2016 H1 H2 H1 Subscriptions +2% +3% +1% Advertising -11% -11% -13% Sponsorship +7% -6% -8% Delegates +3% -12% -17% Other -6% -16% -19% Total 2 +1% -5% -6% 1. Excludes acquisitions/disposals and at constant exchange rates Page 23 2. After closed business and FX
rlying 1 excl t? Reve venu nue e chan ange ge by by q qua uarter ter (u (und nderlying l ti timi ming ng) ) – su subs bscrip ription tion lo low poin int? Y-o-Y % change FY2015 HY2016 Q1 Q2 Q3 Q4 Q1 Q2 Subscriptions +2% +2% +4% +2% +2% +0% Advertising -6% -16% -8% -13% -6% -21% Sponsorship +1% +11% -9% -2% -7% -8% Delegates +3% +5% -11% -14% -18% -14% Other -4% -10% -24% -9% -37% +5% Total 2 +2% +1% -5% -6% -6% -6% 1. Excludes acquisitions/disposals and at constant exchange rates Page 24 2. After closed business and FX
Fal all l in in un underly lying ing operating rating ma margin in al also so la largely ly due ue to to dis isin invest vest qua uadrant ant % Adjusted operating margin H1 2015 25.5 2015 drivers: Dealogic transaction (0.4) Property costs (0.3) 24.8 2016 drivers: Event timing difference 0.6 Disinvest quadrant (1.6) Other 0.3 Adjusted usted operat rating ing mar argi gin n H1 1 20 2016 16 24 24.1 Page 25
Adjusted justed PBT helped lped by by fa favo vour urab able le FX rat ates 53.4 1.3 2.5 4.9 46.9 3.2 1.0 HY 20 2015 15 M& M&A CAP CAP Di Disin inves est q t quad uadra rant nt Oth Other er FX FX HY 20 2016 16 Page 26
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