[PPT] - 2017 Half-year results presentation Andrew Rashbass and Colin Jones PowerPoint Presentation

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Andrew Rashbass and Colin Jones 18 May 2017

2017 Half-year results presentation

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Investor Day in March 2016
Flagged 2017 as a year of transition
DMGT sell-down an accelerator of the strategy

Context

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Enabler of our strategy
DMGT shareholding reduced from 68% to 49% through combination of 15% share

buyback and 10% placement with institutional shareholders

Net debt position from net cash. Balance sheet independence gained
Standalone company project going well
‘’Euromoney to review its dividend policy with a view to increasing the pay-out ratio.”

Done.

DMGT sell-down – January 2017

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Strategy

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B2B Media 1.0

Print Stand-alone events Monologue Advertising central Product-centric

B2B Media 2.0

Digital Networking events Dialogue Subscriptions Customer-centric

B2B Media 3.0

Embedded in workflow/platforms Trading events/ memberships Part of the customer industry Licensing Solution-centric

Our strategic view: the development of B2B information companies

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Our strategy is to manage a portfolio of businesses in markets where information, data and convening market participants are valued. We deliver products and services that support our clients’ critical activities.

Our strategy

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+

+
Cycle

Structure

Prepare for upturn Use the time wisely Disinvest Invest

Batten down the hatches
Protect and enhance competitive position
Careful, selective investment for when

the cycle turns

Opportunistic on revenue opportunities
Tight cost control
Fix any operational deficit
New product development
Sales and marketing
Acquisition
Fix any operational deficit
Modest investment to move to top—

right quadrant above

Maximise shorter-term profit and cash
Fix any operational deficit
Consider divestment
Maximise shorter-term profit and

cash

Divest
Prevent future build-up

Four quadrants

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1) All percentages are in reference to the previous reporting period’s total group operating profit before acquired intangible amortisation and exceptional items.

Strategy in action….managing drag of Disinvest, returns from Invest

(11%) (5%) FY16 H1 2017 Disinvest Quadrant - Profit drag (3%) 6% H1 2017 Invest Quadrant - Profit growth FY16

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Three pillars of strategic activity

Actively manage the portfolio Invest around big themes Transform the operating model

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Themes: where we play

Market attributes Themes Semi-opacity Inefficiency Challenged business models Disruption

Price discovery (eg

metals, air finance) 1.

Asset management

2.

Counter-party risk (eg in

insurance) 3.

Telecoms

4.

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Operating model

Business model

Entrepreneurial businesses

Creative
Action-oriented
Close to customers
Passionate about their

brands

Knowledgeable about

their domain

Accountable for their

results Strong centre

Support the businesses
Take advantage of

Euromoney’s scale

Share best practice
Operate strategically
Manage talent across the

whole company

Best of both worlds approach

CEO Divisions Banking & Finance Data Events Institutional Investor Investment Research Price Reporting and Analytics Specialist Information Functions Legal Corp Dev HR Finance Technology Marketing

Create once, sell many Recurring revenues High Price Low capital intensity High operating leverage High margin Strong, sustained earnings and cash generation

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Boeing Fleet Database (January 2016)
ReSec (August 2016)
FastMarkets (September 2016)
Broadgroup (March 2017)
RISI (April 2017)
Layer123 (April 2017)

Acquisitions Disposals

Gulf and PE (April 2016)
HedgeFund Intelligence (December 2016)
II Intelligence (December 2016)
Euromoney Indices (March 2017)
LatinFinance (March 2017)

Active portfolio management

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RISI

Leading price-reporting agency for the global forest-products market
Strong strategic fit: price discovery a key investment theme; high-quality, largely

subscription business

Product consists of pricing data, mill intelligence, analytics, research and conferences
Cost $125m, 2016 pro forma revenues $29.6m, EBITDA $7.7m
Being integrated into Price Reporting division alongside Metal Bulletin Group

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1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences. 2. Includes other revenues but excludes revenues from sold/closed businesses. FX hedging losses restated in prior year at current year level.

The business turning?

Y-o-Y % change 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Subscriptions and content 2% 0% 1% 2% 1% 2% Advertising (2%) (16%) (14%) (12%) (16%) (10%) Events (14%) (13%) 0% (9%) (14%) 2% Total2 (6%) (6%) (1%) (4%) (5%) 1%

Revenue change by quarter (underlying1)

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From March 2016 Investor Day

FY14/FY15 growth (underlying) Disinvest Batten down the hatches Use the time wisely Invest, Organic Achievable

rganic

growth Invest, Acquisitions Achievable growth

New 2015 Existing

Margin: Lower margin Margin-enhancing Higher margin Quality: Lower quality Improving quality High quality

1

1. Underlying revenue growth from FY14 to FY15, excluding the impact of acquisitions, disposals, currency movements and significant event timing differences. 2. Note: Chart for illustrative purposes only. Not drawn to scale

Strategy: achievable revenue growth (not guidance)

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Half-year results

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H1 2016 H1 2017 Change Revenue (£m) 194.2 203.2 5% Adjusted PBT1 (£m) 46.9 49.1 5% Statutory PBT1 (£m) 23.4 15.6 (33%) Adjusted EPS1 (p) 29.9 32.7 9% Dividend per share (p) 7.00 8.80 26% Net cash/(debt) (£m) 55.9 (83.6)

1. As reconciled in appendix to Interim Financial Report.

Half-year snapshot

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Statutory profit (£m)

15.6 49.1 (8.8) (24.6) (2.3) 2.2

Adjusted PBT Acquired intangible amortisation Exceptional items Associates/JVs Acquisition commitments Statutory PBT

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DMGT shareholding reduced from 68% to 49% through combination of 15% share

buyback and 10% placement with institutional shareholders

Buyback cost £193.6m, funded by £75.4m of cash and £118.2m of new bank term-

loans

Financing costs (excl RISI) c.£1m per quarter from January 2017
EPS accretion and new dividend policy
Standalone company including managing own balance sheet and banking relationships

DMGT sell-down – financial implications

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Investment in strong centre to support growth strategy:

Functions previously provided by DMGT
M&A resource
HR, Legal, IR
Stronger governance
H1 cost £1m
FY17 expected cost £3m (annualised £4m)

Standalone company costs (in addition to financing)

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1. As reconciled in appendix to Interim Financial Report.

H1 2017 net debt (£m)

Underlying 12-month cash conversion 120%

83.8 (193.6) 73.7 (21.2) (9.2) 2.9 (13.0) (6.4) (0.6) (83.6)

Net cash at Sept 30 2016 Share buyback Operating cash inflow Dividends Capex Net M&A Net tax Exceptional items Other Net debt at Mar 31 2017

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1. As reconciled in appendix to Interim Financial Report

Pro forma April 2017 net debt (post April acquisitions) (£m)

83.8 (193.6) 73.7 (21.2) (9.2) 2.9 (13.0) (6.4) (0.6) (83.6) (103.3) (186.9)

Net cash at Sept 30 2016 Share buyback Operating cash inflow Dividends Capex Net M&A Net tax Exceptional items Other Net debt at Mar 31 2017 RISI/Layer123 Pro forma net debt (post April acquisitions)

Post RISI net debt well under 2x EBITDA

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Half-year operating results

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Context

1. Improving cycle for commodities

and banking markets

2. Disinvest quadrant being managed

to reduce drag

3. FY16 investment paying off in FY17
4. Favourable US$

Positives Negatives

1. Asset management headwinds

– MiFID – Shift from active to passive

2. Advertising continues to fall (but

less than 10% of revenues)

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1. As reconciled in appendix to Interim Financial Report.

Reported results

£m H1 2016 H1 2017 Change Revenue 194.2 203.2 5% Adjusted operating profit1 46.8 49.0 5% Adjusted operating margin 24.1% 24.1%

Adjusted PBT1

46.9 49.1 5%

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* Butterfly refers to the aggregate of top-left and bottom-right quadrants.

H1 reported revenue: year-on-year movements (£m)

203.2 194.2 22.5 (3.3) (3.0) 2.1 (4.4) (4.9) HY 2016 FX Net M&A Timing Invest Butterfly* Disinvest HY 2017

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1. After sold/closed businesses, FX and other revenues. 2. Percentage of total H1 2017 revenue excluding closed businesses, FX and other revenues.

Reported revenue change

Y-o-Y % change 2016 2017 H1 H2 H1

% revenue2

Subscriptions and content 5% 11% 19%

62%

Advertising (3%) (6%) 3%

8%

Sponsorship (3%) 10% 13%

13%

Delegates (5%) (5%) (2%)

17%

Total1 (2%) 2% 5%

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1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences. 2. Includes other revenues but excludes revenues from sold/closed businesses. FX hedging losses restated in prior year at current year level.

Revenue change by quarter (underlying1)

Y-o-Y % change 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Subscriptions and content 2% 0% 1% 2% 1% 2% Advertising (2%) (16%) (14%) (12%) (16%) (10%) Sponsorship (7%) (8%) 9% (7%) (14%) 5% Delegates (18%) (17%) (9%) (12%) (14%) 1% Total2 (6%) (6%) (1%) (4%) (5%) 1%

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H1 2017 revenue matrix by segment/type1 (£m)

Subscriptions continue to grow - 62% of total revenue (H1 2016: 54%)
Advertising still falling but only 8% of H1 revenue
Pricing, data & market intelligence driving growth – strong performance from Metal

Bulletin

1. See slide 44 for notes and colour key.

Events revenue decline mainly from elimination of low-margin events and training

courses

Asset management

69.1

1%

7.1

(8%)

6.1

4%

0.6

99%

0.0

62%

82.9

0% Pricing, data and market intelligence

52.5

3%

5.0

(23%)

6.8

10%

8.9

0%

0.6

(23%)

73.9

1% Banking and finance

4.2 (8%) 4.1

(1%)

10.0 (12%) 10.9 (13%) 0.6

(25%)

29.8 (11%)

Commodity events

4.0 (10%) 14.6

(7%)

0.4

1%

19.0 (10%)

Total segment revenue

125.8

1%

16.2

(14%)

26.9 (3%) 35.0

(6%)

1.6

(18%)

203.2

(2%) Delegates Other Total

N/A N/A

Subscriptions/ Content Advertising Sponsorship

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Adjusted operating margin H1 2016 24.1% FX 0.2% Net M&A 0.4% Timing (0.6%) Underlying business:

Invest

1.1%

Disinvest

(0.6%) 0.5% DMGT separation/standalone company (0.5%) Adjusted operating margin H1 2017 24.1%

H1 operating margin: year-on-year movement

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H1 adjusted PBT: year-on-year movement (£m)

49.1 46.9 5.9 0.0 (2.1) 0.6 (1.0) (1.0) 2.9 (0.8) (2.3)

HY 2016 FX Net M&A Timing Associates/ JVs Standalone company Buyback interest Invest Butterfly Disinvest HY 2017

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£5.9m year-on-year FX benefit to

adjusted PBT:

– GBP/USD rate fell 23 cents – £7.4m FX benefit on translation of

verseas profits

– £0.2m FX gain on balance sheet revaluation (H1 2016: £1.7m gain)

Current GBP/USD rate still provides H2

2017 upside

Impact of favourable FX

GBP/USD rate

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New progressive dividend policy
Dividend pay-out ratio increased from 33% to 40% (cover reduced from 3x to 2.5x)
EPS benefitted from 15% reduction in issued shares following share buyback
Basis for interim dividend: 33% of prior full-year dividend
Interim dividend increased from 7p to 8.8p (+26%)
Further full-year EPS dividend benefit to come in FY18

New dividend policy

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Outlook & summary

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Book of business – reported (c60% of total revenue)

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Total subscriptions book of business at reported GBP/US$ rate

2014 2015 2016 2017

15.8%

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Book of business – underlying

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Underlying subscriptions book of business at constant GBP/US$ rate

2014 2015 2016 2017

1.5%

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Book of business – reported growth split

15.8%

Mar Sep Mar

Total book of business reported % growth

Organic Net M&A FX

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Advertising – underlying (c10% of total revenue)

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Events – underlying (c30% of total revenue)

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Evidence that the business may be turning

– Book of business – Events bookings – Q2 performance – Cash conversion

Banking & finance and commodities markets improving
Asset management markets more challenged
Investing FX benefit to accelerate strategy. FX remains favourable
Capital being rigorously allocated and quadrants managed
DMGT sell-down accelerates strategy. But there are standalone company costs
Continuing strong balance sheet and cash flow

In summary, on track with strategy

Outlook & summary

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Q&A

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Andrew Rashbass and Colin Jones 18 May 2017

2017 Half-year results presentation

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Appendix: Supplementary information

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H1 2017 revenue matrix by segment/type (£m)

Notes

The absolute £ totals represent reported figures.
The percentages represent underlying growth rates, including pro

forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences at constant exchange rates.

Total segment revenue of £203.2m includes FX on forward contracts

(-£7.0m) and sold/closed businesses (+£4.7m). Key

Dark green – growth more than 2%
Light green – growth of 0% to 2%
Amber – decline of 0% to -1%
Pink – decline of -1% to -5%
Dark red – decline more than -5%
The white cells have not been colour-coded due to their size

Asset management

69.1

1%

7.1

(8%)

6.1

4%

0.6

99%

0.0

62%

82.9

0% Pricing, data and market intelligence

52.5

3%

5.0

(23%)

6.8

10%

8.9

0%

0.6

(23%)

73.9

1% Banking and finance

4.2 (8%) 4.1

(1%)

10.0 (12%) 10.9 (13%) 0.6

(25%)

29.8 (11%)

Commodity events

4.0 (10%) 14.6

(7%)

0.4

1%

19.0 (10%)

Total segment revenue

125.8

1%

16.2

(14%)

26.9 (3%) 35.0

(6%)

1.6

(18%)

203.2

(2%) Delegates Other Total

N/A N/A

Subscriptions/ Content Advertising Sponsorship

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H1 2016 revenue and profit matrix

£m Subscriptions/ Content Advertising Sponsorship Delegates Other Total revenue Adjusted

perating

profit Asset management 58.4 6.6 5.0 0.3

70.3

22.0 Pricing, data & market intelligence 43.4 5.4 5.2 7.8 0.7 62.5 19.1 Banking & finance 3.9 3.7 9.8 11.3 0.8 29.5 2.6 Commodity events

3.8

16.3 0.4 20.5 8.5 Total segment revenue 105.7 15.7 23.8 35.7 1.9 182.8 52.2 Sold/closed businesses 12.8 0.8 FX hedges/balance sheet (1.4) 0.3 Corporate costs

(6.5)

Total revenue/adjusted

perating profit

194.2 46.8

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H1 2015 revenue and profit matrix

£m Subscriptions/ Content Advertising Sponsorship Delegates Other Total revenue Adjusted

perating

profit Asset management 54.5 6.1 5.3 0.3 0.1 66.3 23.3 Pricing, data & market intelligence 41.8 5.7 5.4 7.3 0.7 60.9 17.3 Banking & finance 3.8 3.8 10.0 14.9 0.8 33.3 6.0 Commodity events

4.2

15.1 0.4 19.7 8.6 Total segment revenue 100.1 15.6 24.9 37.6 2.0 180.2 55.2 Sold/closed businesses 16.5 4.4 FX hedges/balance sheet 1.0 0.2 Corporate costs

(9.3)

Total revenue/adjusted

perating profit

197.7 50.5

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Revenue by segment

£m H1 2016 H1 2017 Reported Underlying1 Asset management 70.3 82.9 18% 0% Pricing, data & market intelligence 62.4 73.8 18% 1% Banking & finance 29.5 29.8 1% (11%) Commodity events 20.5 19.0 (7%) (10%) Sold/closed businesses 12.8 4.7

FX hedges

(1.3) (7.0)

194.2

203.2 5% (2%)

1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences.

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1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences.

Revenue by type

£m H1 2016 H1 2017 Reported Underlying1 Subscriptions and content 105.8 125.8 19% 1% Advertising 15.7 16.2 3% (14%) Sponsorship 23.8 26.9 13% (3%) Delegates 35.6 35.0 (2%) (6%) Other 1.8 1.6 (13%) (18%) Sold/closed businesses 12.8 4.7

FX hedges

(1.3) (7.0)

Total

194.2 203.2 5% (2%)

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1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences. 2. Includes other revenues but excludes revenues from sold/closed businesses. FX hedging losses restated in prior year at current year level.

Underlying1 revenue change

Y-o-Y % change 2016 2017 H1 H2 H1 Subscriptions and content 1% 2% 1% Advertising (9%) (13%) (14%) Sponsorship (8%) 1% (3%) Delegates (18%) (10%) (6%) Total2 (6%) (2%) (2%)

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1. After sold/closed businesses, FX and other revenues.

Revenue change by quarter (reported)

Y-o-Y % change 2016 2017 Q1 Q2 Q3 Q4 Q1 Q2 Subscriptions and content 5% 6% 5% 17% 20% 17% Advertising 3% (9%) (10%) (3%) 2% 4% Sponsorship (5%) (2%) 13% 7% 5% 20% Delegates (18%) 6% (6%) (3%) 5% (7%) Total1 (5%) 1% (1%) 4% 6% 4%

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Operating profit by segment

£m H1 2016 H1 2017 Reported Underlying1 Asset management 22.0 29.2 33% 9% Pricing, data & market Intelligence 19.1 23.2 22% (3%) Banking & finance 2.6 4.1 59% (5%) Commodity events 8.5 7.0 (17%) (15%) Sold/closed businesses 0.8

Corporate costs

(6.5) (7.8)

FX hedges/balance sheet

0.3 (6.7)

Total

46.8 49.0 5% (2%)

1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences.

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1. See note 4 of the Interim Financial Report for fuller description.

Exceptional items1

£m H1 2017 NDR goodwill impairment (27.4) Profit on disposal of businesses 4.8 Tax settlement 3.9 Other (5.9) (24.6)

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1. See note 5 of the Interim Financial Report.

Net finance costs1

£m H1 2016 H1 2017 Interest on DMGT debt facility (0.4) (0.2) Interest on cash deposit with DMGT 0.1 0.1 Interest on external borrowings

(0.9)

Interest on tax (0.3) (0.1) Underlying net finance costs (0.6) (1.1) Acquisition deferred consideration

0.1

Acquisition commitments (0.8) 2.1 Statutory net finance costs (1.4) 1.1

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1. See note 6 of the Interim Financial Report.

Tax1

£m H1 2016 H1 2017 Adjusted PBT 46.9 49.1 Statutory tax charge (6.2) (1.9) Other tax adjustments (2.7) (8.3) Underlying tax charge (8.9) (10.2) Underlying tax rate 19% 21%

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Cash conversion

£m 12 months to H1 2016 12 months to H1 2017 Adjusted operating profit 100.6 103.6 Cash generated from operations 108.2 117.8 Exceptional items 1.6 10.1 Timing differences (1.9) (3.8) Underlying cash generated from operations 107.9 124.1 Cash conversion % 108% 114% Underlying 12-month cash conversion % 107% 120%

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Deferred revenue

Mar-16 to Mar-17 £m Subscriptions Events Advertising Opening balance 95.3 29.6 4.0 Net M&A (1.1) (0.2) (0.5) FX 9.4 1.7 0.2 Adjusted opening balance 103.6 31.1 3.7 Underlying movement 3.1 3.6 (0.6) Closing balance 106.7 34.7 3.1 Underlying growth % 3% 12% (16%)

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Impact of FX

GBP/USD H1 2017 H1 2016 Average rate 1.25 1.48 Closing rate 1.25 1.44 GBP/USD 1¢ movement Revenue +/- £1.4m Profit before tax +/- £0.6m

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New banking facilities

£m Purpose Term-loan 120 Share buyback Revolving credit facility 130 Acquisitions & working capital 250 Accordion 130 Additional acquisitions 380 Funding costs

Net Debt: EBITDA Margin above LIBOR < 1.0 1.25% <1.5 1.50% <2.0 1.75% <2.5 2.00% >2.5 2.50%

Rate hedging

£32m of term-loan swapped to fixed rate of 0.76% p.a $80m of term-loan swapped to fixed rate of 1.97% p.a

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100 1995 1998 2001 2004 2007 2010 2013 2016 (200) (150) (100) (50) 50 100 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

A strong hand (1 of 2)

Cash machine Firepower from strong balance sheet Experienced at spotting and monetising trends Strong brands (examples)

100 200 300 400 1995 1998 2001 2004 2007 2010 2013 2016 140% 100% Underlying cash conversion Adjusted operating profit £m Revenue £m Net cash/(debt) (£m) £m Source: Company data

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Page 60 10% 8% 5% Euromoney FTSE 250 FTSE 100

100 200 300 400 1996 2000 2004 2008 2012 2016 Revenue (£m)

A strong hand (2 of 2)

Good people Transitioned from being a traditional media company Established acquisition record Outperforming TSR

1. CAGR TSR from 01 May 2007 to 01 May 2017 2. Source: Company data, Bloomberg (TSR)

Subscriptions and events Advertising 45 84 78 196 403

2005 Organic growth Acquisition Post-Acquisition 2016

Revenue (£m) c.75% of growth M&A related

May 2007 – May 20171