Capital Markets Day 17 July 2019 2 Disclaimer The Company, its - - PowerPoint PPT Presentation

17 July 2019

Capital Markets Day

The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this Presentation save as would arise under English law. Statements contained in this Presentation are based on the knowledge and information available to the Group’s Directors at the date it was prepared and therefore facts stated and views expressed may change after that date. This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group’s business, financial condition and results of operations. Those statements and statements which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning, reflect the Group's Directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this Presentation. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this Presentation. Furthermore, past performance of the Group cannot be relied on as a guide to future performance. No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per Euromoney Institutional Investor PLC share for the current or future financial years would necessarily match or exceed the historical published earnings per Euromoney Institutional Investor PLC share. Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part

• f any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its

distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.

Disclaimer

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

Andrew Rashbass Chief Executive Officer 17 July 2019

Introduction and Strategy Recap

We are

a global B2B information business

We provide

price discovery, essential market intelligence and events

Continued transition towards a 3.0 business

• +

B2B Information 1.0

Print Monologue Advertising-centric Product-centric

B2B Information 2.0 B2B Information 3.0

Digital Dialogue Subscriptions Customer-centric Embedded in workflow Part of the industry structure Licensing revenues based on customer outcomes Solution-centric

Quadrants

3

Prepare for the upturn

• Protect and enhance competitive position
• Invest in acquisitions when cycle turns
• Opportunistic revenue initiatives
• Tighten cost control
• Fix any operational deficit

B2B Information 1.0 STRONG MARKET TAILWINDS CYCLE STRUCTURE

• +

+

• 4

Invest

• New product development
• Invest in sales and marketing
• Acquisition
• Fix any operational deficit
• Accelerate transition to 3.0

1

Disinvest

• Maximise short-term profit and cash
• Divest
• Prevent future build-up

2

Use the time wisely

• Modest investment to move to top-right quadrant
• Maximise short-term profit and cash
• Fix any operational deficit
• Consider divestment

The quadrants guide investment decisions, capital allocation and also define strategic priorities

B2B Information 3.0

Transform the operating model

Product development and creating our future operating model Disruption Semi-opaque market Inefficiency Barriers to entry Challenged business models

Invest around big themes

Actions depend

• n market characteristics

Pillars

3.0 Business model Must have, not nice to have Create once, sell many Best of both worlds Acquisition Disposal

Actively manage the portfolio

Recycling capital

H1 2019 Adjusted revenue and profit matrix by segment

Adjusted1 Revenue (£m) Profit (£m) Subscriptions/ Content Advertising Events Other2 Total Total Asset Management 59.5 (5%) 5.6 6% 7.7 11% 0.2 73.0 (3%) 30.1 5% Pricing, Data & Market Intelligence 52.4 8% 6.3 (6%) 30.6 (4%) 0.4 89.7 3% 32.7 3% Banking & Finance 3.3 (9%) 2.4 (22%) 17.5 13% 0.3 23.5 4% 3.5 (1%) FX losses on forward contracts (1.3) (1.3) (1.3) Segment total 115.2 0% 14.3 (5%) 55.8 3% (0.4) 184.9 1% 65.0 4% Closed and sold businesses (0.1) Central costs (18.1) Balance sheet FX losses (0.6) Adjusted1 operating profit 46.2 7%

Subscriptions Book of Business growth1

(8.0%) (4.0%) 0.0% 4.0% 8.0% 12.0% 16.0% Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Group Pricing, Data & Market Intelligence Asset Management £110.8m, 10.7% £119.5m, 9.6% £238.3m, 1.1% £240.3m, 1.2% £120.2m, (6.2%) £113.7m, (6.0%)

Today’s Presenters

Investment Research Division

Bashar AL-Rehany

CEO, Investment Research Division and CEO, BCA Research CEO of BCA since 2003, joined the Group in 2006 through the acquisition of Metal Bulletin plc (incl. BCA). Previously CEO Dow Jones Markets Canada and spent 13 years with REUTERS.

Chris Ciompi

Chief Marketing Officer, Investment Research Division Joined in Aug 2018. Previously; SVP, Head of Marketing for Global X ETFs, VP, Integrated Marketing at Liberty Mutual and Engagement Manager at McKinsey & Co.

Raju Daswani

CEO, Fastmarkets Joined the Group in 1995. Previous roles; MD, Metal Bulletin, Commercial Director/ Head of Research/ Business Development (USA)/ Commodities Economist, Metal Bulletin.

Fastmarkets

Jeff Davis

CEO, Specialist Information Division Joined Feb 2019 with BoardEx and The Deal acquisition (as President). Previously Managing Director Barclays Inc (Head of Global IB Client Strategy, and Barclays Wealth Capital Markets). Over 25 years in institutional markets.

BoardEx

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

Bashar AL-Rehany & Chris Ciompi 17 July 2019

Investment Research Division

Outline for Discussion

Create a smarter

• rganisation

structure Map the market Professionalise marketing and sales Innovate and develop 3.0 products

Quick recap – Market Conditions and Business Actions

Key points Market Conditions

■ Regulation: MiFID II has impacted the way EU buyers of research pay and budget ■ Shift to Passive: Asset Managers continue to feel the pressure on fees from the shift to

passive investing products

■ Buyers view independent macro research as critical to making their investment decisions

Business Actions

■ Reduce costs then reinvest in a streamlined and smarter organisation structure ■ Map the market: What the market values, what our competitive advantages are and how to

position ourselves to win

■ Professionalise Marketing and Sales: Build awareness, increase lead generation, new client

acquisition and client retention

■ Innovate and Develop 3.0 Products: Supercharge what is already working at NDR, and bring

new products to market at BCA Research

The Investment Research Division (IRD) has two distinct brands

Tagline Positioning

Shape Your Conviction™

■ Fiery, collaborative process ■ Confidence-inspiring fact base ■ Macro experts who challenge you

See the signals. Avoid mistakes.™

■ 360⁰, data-driven approach ■ Weight of the evidence ■ No client is too big or too small

Book of business (Mar 19) Total clients Total employees Office locations

$71.0m 2,017 142

■ Montreal (HQ) ■ London ■ NYC ■ Sao Paolo ■ Hong Kong ■ Sydney ■ CapeTown ■ San Francisco

$28.6m 897 89

■ Venice, FL (HQ) ■ London ■ NYC ■ Atlanta ■ Chicago ■ Hong Kong ■ Boston ■ San Francisco

IRD fast facts

BCA Research and NDR – Products at-a-glance

Macro Research

■ Multi-Asset: Global (5) ■ Multi-Asset: Regional (4) ■ Single Asset (5)

Platforms and Analytics

■ Equity Trading Strategy ■ Global ETF Strategy ■ BCA Research Analytics ■ BCA Research Indicators

Training and Conferences

■ BCA Research Academy ■ Annual Investment Conference

Insights

■ Institutional

Investors

■ Wealth Managers

Tools

■ ETF Selection ■ Stock Selection

Solutions

■ Model Portfolios ■ Data ■ Custom Research ■ White Label

Marketing

Conferences

■ Annual

Investment Conference

Clients (no. clients by revenue generated) Book of Business ($m, by region)

BCA Research – Book of Business and Clients

300 600 900 1,200 1,500 1,800 2,100 As of Mar 2019 >$100,000 $15,000-100,000 <$15,000

Types of clients: Institutional Investors (Asset Owners and Asset Managers), Financial Advisors

34% 60%

2,017

$0 $20 $40 $60 $80 As of Mar 2019 Millions APAC EMEA Americas

$71.1

49% 36% 15% 6%

Clients (no. of clients by revenue generated) Book of Business ($m, by region)

NDR – Book of Business and Clients

$0 $5 $10 $15 $20 $25 $30 As of Mar 2019 Millions APAC EMEA Americas

$28.6

82% 16% 300 600 900 As of Mar 2019 >$100,000 $15,000-100,000 <$15,000 35% 62%

897

3% 2%

Types of clients: Institutional Investors (Asset Owners and Asset Managers), Financial Advisors

45% of the BoB is in the growing Wealth Mgmt. Segment 60% of clients are in the growing Wealth Mgmt. Segment

A smarter structure: two brands, one infrastructure

NDR only IRD (BCA and NDR) BCA only CEO, IRD and CEO, BCA Research

Marketing Finance Sales Ops Technology Sales Research HR Sales Research HR Ops and Compliance Managing Director

Outline for Discussion

Create a smarter

• rganisation

structure Map the market Professionalise marketing and sales Innovate and develop 3.0 products

2013-2019F Investment Research Market, by Region ($m)

■ 2019 weakness indicative

• f asset managers cutting

duplicate coverage

■ Cuts will affect

sell-side firms

■ Opportunity exists for

quality Independent Research Providers (IRPs) to fill any gaps left by cuts

■ Doesn’t split apart Vote

and Subscription, which doesn’t give the full picture

Overall research market pace of decline is slowing; sell-side and Vote taking the hit

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2013 2014 2015 2016 2017 2018 2019F North America Europe Asia

Includes sell-side and Vote

Subscription books are >93% of our business and are performing better than Vote

$2 $3 $4 $5 $6 $7 $8 $9 $20 $30 $40 $50 $60 $70 $80 $90 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Vote book of business $m Subscription book of business $m

BCA Subs-only BCA Vote NDR Subs-only NDR Vote

IRD Books of Business ($m)

Less than 7% of the combined BoBs are Vote

Diagnosis of the market

■

Pace of decline is slowing

■

Drivers of decline are sell-side and Vote

■

Opportunity to take share from sell-side research in a post-MiFID II world

■

Requirement to differentiate and highlight competitive advantage vs. other independent research providers

■

Opportunity to leverage BCA Research leader status to capture more than “fair share” in growing Asia market

Is sell-side macro a substitute for independent macro? Is independent macro a complement to sell-side macro? (n = 1,050)

76% of the market believes sell-side macro is not a substitute for independent macro

Yes/Yes 23.1% Yes/No, 1.1% No/Yes 64.5% No/No 11.2% Blue Slices:

• f the market

is addressable

Non-substitutability is a key competitive advantage for independent research providers vs. sell-side

99%

16% 6% 78% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% End of 2017

Market Share: Independent Research (%, 100% = $500m)

There is room for BCA Research and NDR to steal share from competitors

BCA Research All others, with key competitors’ logos NDR

■ BCA Research is the largest

IRP by market share

■ Market is fairly fragmented ■ Opportunity exists to steal share

from competitors who are:

□ Less valued due to

lower quality research

□ Not differentiated

from each other

Relative to other IRPs, BCA Research and NDR score well on key reasons to buy

Ranked importance to buying decision BCA Research performance NDR performance Buying Decision-making Criteria Content quality

1

 

Depth of analysis

2

 

Coverage of markets and interest

3

 

Actionability

4

 

Timeliness

5

 

■ 52% of buyers will increase

their budgets over the next 5 years

■ 16% of buyers will decrease

their budgets over the same time period

■ Risks of market growth for

IRPs remain if buyers choose

• n price before quality

Expectations for spend/usage on Independent Macro Research (n=104)

Opportunity: the IR market is predicted to grow 2-3% annually through 2023

0% 20% 40% 60% 80% 100%

Increase by

10%+

Increase between

6-10%

Increase between

3-5%

No change

(+/- 2%)

Decrease between

3-5%

Decrease by

10%+

Decrease between

6-10% Annual growth 2019-2023

Avg. 2-3%

1 2 3 4 5 to 7

The majority of buyers believe ind. research is critical and 76% of buyers consume 3+ sources

Extremely critical Not at all critical 8 to 11

Criticality of independent research to investment decision making (proportion of respondents) Number of IRPs buyers purchase (% of the market)

0% 20% 40% 60% 80% 100% 76% purchase from 3 or more sources 56% view as extremely critical or critical

Neutral Critical

Outline for Discussion

Create a smarter

• rganisation

structure Map the market Professionalise marketing and sales Innovate and develop 3.0 products

MiFID II in force 75% 80% 85% 90% 95% 100%

BCA and NDR subscription renewal rate (%, 12-month moving average)

Subscription renewal rates have remained reasonably firm

BCA NDR

91.1% 83.2% 83.9% 89.3%

BCA Research didn’t gain from recent market volatility, implying internal issue

VIX 6MA vs NDR New Sales 6MA (VIX = units) MA = moving-average VIX 6MA vs BCA Research New Sales 6MA (VIX = units)

Count of deals and average price per deal, by months (no. in units and $ in thousands)

BCA’s problem is the number of new sales, not the average price per sale

BCA Research is professionalising sales and marketing processes and systems

Before June

2018 Now

By the end of

2019

No tactics

Undefined brand strategy

Public Relations (PR)

‘Conviction’ strategy2

Out-of-home (OOH) pilot

Expand PR

‘Conviction’ messaging in-market and rebranded visuals1

E-blasts = marketing

No lead tracking

■

Scattered commercial policy

Multi-tactic marketing

New sales or structure (NA)

■

New website

Commercial policy pilot

Add more lead gen tactics

Lead tracking and analytics

■

New sales structure in RoW

Clients

High-touch renewals

Webcasts

No upsell lead tracking

Contractual auto-renewal

Webcasts, Social Media

Gifting program

Add: Programmatic ad retargeting

Upsell lead tracking in CRM

‘Conviction’ strategy

Public Relations (PR)

Multi-tactic marketing

New sales or structure (NA)

New website

Webcasts, Social Media

Awareness Consideration Retargeting and Reconsideration

BCA Research

Shape Your Conviction™

NDR

See the signals. Avoid mistakes.™

BCA Research and NDR:

In progress

BCA Research

EOY 2019

NDR

EOY 2019

Launch Defining bottom slice

• f Brand Pyramid

Defining brand strategy and rebranding in market to highlight differentiation

Defining Strategy complete Dec 2018 Framework: P&G Brand Pyramid

Brand Character Brand Building Blocks Brand Equities Consumers Experience

A B C D

Brand Equity Statement

Taglines Visuals (including new logos and colours) D Visuals – competitive landscape: Plenty of room for differentiation A B C

BCA Research’s old website was outdated in terms of tech and look/feel

BCA Research’s new website is contemporary and has advanced tech

Marketing-generated leads (no. leads) Awareness through Public Relations (PR)

Awareness and lead generation at BCA Research and NDR leverage PR and advertising

Digital and Print TV

116 118 3,126 4,754 1,000 2,000 3,000 4,000 5,000 Q1 Q2 FY18 FY19

Over 100 placements per quarter in FY 2019

$- $50 $100 $150 $200 $250 $300 $350 $400 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Americas new sales 3-month moving average

BCA Research Americas subscription new sales improving

BCA Research Americas new sales – recent history ($ thousands)

New marketing leader starts New sales leader starts

Outline for Discussion

Create a smarter

• rganisation

structure Map the market Professionalise marketing and sales Innovate and develop 3.0 products

Where we are today

Back to Growth: we are working on stage 3 and have started work on stage 4

Addressing costs Positioning for short- and mid-term growth Positioning for long-term growth Create a Smarter Org Map the Market Innovate and develop 3.0 products Achieving

3.0

Transformation

Stage

1

Stage

2

Stage

4

Professionalise Marketing and Sales

Stage

3

Addressing short- and mid-term growth

$11.60 $11.80 $12.00 $12.20 $12.40 $12.60 $12.80 $13.00 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19

NDR has already made its way into the growing US financial advisor market

NDR wealth market subscription book of business ($m)

Dip here is due to seasonality New Global Head of Sales joined in Apr 2019

NDR is moving into providing indices for investment vehicles, such as ETFs

$201 $421 $508 $108 $310 $294 $0 $50 $100 $150 $200 $250 $300 $350 $0 $100 $200 $300 $400 $500 $600 FY17 FY18 H1 FY19 Millions Thousands AuA Revenue

NDR Assets under Advisement and revenue from AuA

Note: Only ½ of this fiscal year is represented

Key takeaways

■

We have created a smarter organisation structure and invested in talent

■

Our overall market’s pace of decline is slowing, and our specific part of the market – independent macro research sold via subscriptions – is growing

■

Buyers in our market DO NOT believe sell-side macro is a substitute for independent macro and believe independent macro is critical to their work

■

Buyers in our market value content quality above all else, and they see BCA Research and NDR as having high content quality versus our competitors

■

We are seeing positive early indicators at BCA Research that our work in marketing and sales is paying off – new sales are up versus this time last year

■

We are actively innovating to create 3.0 products; NDR already has a strong foothold in the growing US Wealth Management market and is pushing into the fast-growing index-provider space

Q&A

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

O V E R V I E W // 2 0 1 9

• 1. Gartner

Evolution of Relationship Management

Client Firm CRM BoardEx You know who you know… but do you know who your colleagues know? More importantly, how do you get to people you don’t know?

■

BoardEx identifies decision makers and the path to get there

■

BoardEx is the next evolution in relationship management

■

Database management systems are now outpaced by CRM1

■

Most relationship management systems are dependent upon internal adoption and only as accurate as the last update

■

Relationships are the single most important asset

YOU

ORGANIZATION OR INDIVIDUAL

EMPLOYEES

ALUMNI

CONTACTS

Banker at Investment Bank X New York Vice Chair Investment Bank X Sydney Board Member Strategic Alternatives Committee Mid West Chemical Group

Mid West Chemical Group

TRANSACTIONS

COMPANY ALUMNI

SENIOR MANAGEMENT CONNECTIONS

NOT FOR PROFIT

BOARD-TO-BOARD CONNECTIONS YOUR COMPANY’S CONNECTIONS

THE DEAL TRANSACTIONS

NON-EXECUTIVE BOARD

Federal Reserve Bank New York

INSURANCE/REINSURANCE CAPITAL FINANCING

ASSET MANAGEMENT TELECOMS AVIATION FINANCE INFRASTRUCTURE FINANCE

What is Relationship Mapping?

Proprietary algorithms, data depth and accuracy create competitive advantage

■ Proprietary algorithms rank

relationships to highlight the most actionable connections

■ Quality Sources: press releases,

announcements, public filings, IR websites, etc.

■ Unparalleled Accuracy:

300+ in-house researchers based in Chennai, India

■ Technology-enabled change

detection applications

■ Profiles continuously updated:

1.4m updates in last 12 months

BoardEx: Leader in Relationship Management 137

Countries

19+ years

• f Historical Data

1,600 1.8m

Organisation Profiles

1.2m 1b

First-Degree Connections Director and Senior Management Profiles PE Firms

Relationship Mapping Landscape

Competitors

Data Collection

augmented by change detection software

• r UGC

Accuracy

dedicated 300+ person team

process, profiles subject to errors Coverage Universe

influential business leaders/decision- makers globally

compromises data integrity

lower-level executives and non-decision makers Relationship Mapping Algorithms

algorithms that determine best connectivity

BoardEx Competitors

Addressable Market of ~$280m

Financial Services Professional Services Legal Private Equity Corporate Academic and Non-Profit Target Markets

Investment Banks Wealth Management Asset Management Commercial Banks Executive Search Management Consulting Accounting Am Law 250 Business Development Transactions PE Firms Portfolio Companies Corporate Governance Talent Management Global Research Universities Alumni/ Endowment Fundraising

Size

$110m $82m $19m $50m $21m $2m

Small portion of relationship mapping market (15%) penetrated by market participants Growth driven primarily through increased adoption and penetration in addressable market Focus on expanding sales channels, industry specialisation, and geographical expansion

• 85% Opportunity

BoardEx: How we will win

Gold Standard

• f Data

Highly accurate, comprehensive and timely individual and organisation profiles which are continuously fact checked by highly trained individuals and automated processes Flexible solutions that can be integrated into a customers CRM or workflow application

Embedded in Customers Workflow

Proprietary collection process combining automated and manual validations

Collection Process

Intricate calculations that weight individual factors and rank the overall strength and target path of a relationship

Proprietary Algorithms

A 3.0 business that will leverage ERM data and content; catalyse 2.0 businesses into 3.0 taking advantage of

• ur geographic

footprint and scale

The Euromoney Advantage

BoardEx Client Journey

■

Business Development

■

KYC

■

Market Analysis

■

Search Intelligence

■

Competitor Analysis

■

Union of Client and BoardEx Data

BoardEx Cloud

Web and Mobile Application

■

Predictive Analysis

■

Client Thought Leadership

Business Intelligence

■

Data Integration

■

CRM and In-House Applications

Workflow Integration

■

Concordance

■

Flexible Data Framework

Data Integration

Data Feed APIs

1 =

License

4

3

2

Scope Client Tier

$7.5k pa

Enterprise-wide Division Department

Solution

The Cloud Data Feed Predictive Analysis

+

BoardEx Pricing Structure: Enterprise License

Sectors

Banking and Buyside Executive Search Professional Services Legal Academic and NFP

■ Rate card pricing determinants: sector + solution + scope + client tier + term ■ Sold on an ‘enterprise-wide’ basis with focus on multiple-year terms ■ Multiple-year contracts represent approximately 46% of all agreements

+

$9.8m $11.8m $13.5m 2016 2017 2018

BoardEx at a Glance

Operating margin2

29%

Net renewal rate

96.5%

Clients2

360

Multiple-year contracts3

46%

Revenue CAGR YE 16-181

18%

Revenue1

Increased penetration

■ Expand into new sectors and footprint ■ Investment in Sales and Marketing

Increased relevance through coverage

■ Leverage ERM Editorial content and data assets ■ Extend relationship types using new data sets ■ Drive thought leadership

Workflow integration

■ Continue evolution of our Salesforce application ■ Next generation of APIs and integration tools ■ Efficiency improvements

How Euromoney Helps Drive BoardEx Growth

New Sectors & Footprint Acquisition Growth Efficiency Improve- ments Investment in Sales & Marketing Expand Relationship Types Workflow Integration Leverage Data Assets Thought Leadership Specialisation

Summary

BoardEx is a Leader in Relationship Management Strong Financial Performance with Consistent Double-Digit Revenue Growth Euromoney Drives Growth Strategic Product Initiatives as a 3.0 Business Robust Organic and Inorganic Opportunities Highly Underpenetrated Market

Q&A

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

A world-leading price reporting business

About Fastmarkets (video)

Louise Noone Global Head of HR Louise joined Fastmarkets in October 2018. She has worked in HR for over 20 years, recently focussing

• n transformation.

Toby Burton CFO/COO Toby joined Fastmarkets in

• 2018. Prior to this,

Toby spent 11 years at The Economist Group as CFO of the Publisher Team. Dan Klein CEO, Forest Products Dan joined Fastmarkets in

• 2017. Previously

Dan was a Senior Executive at Forrester Research. Kevin Smith CTO Kevin joined Fastmarkets in 2016. Kevin previously worked for RBC Capital Markets and for Microsoft for

• ver 8 years.

David Monaghan MD, Events David joined Fastmarkets in November 2017. David has over 18 years’ experience in events at IIR and Argus Media.

Fastmarkets have invested in its senior management team

New CMO

to be in place by year-end

Our markets

We serve our markets through four channels

Price reporting Market intelligence, & forecasts Analytics Events Market data Market commentary

>5,500

prices assessed by Fastmarkets

Fastmarkets pricing process (video)

How our information is used

Price benchmarks for contracts Exchange contracts Market trend analysis and forecasts Internal sales/ purchasing performance evaluation Inventory valuation

Our prices are used across the life cycle of the industries we serve

~$2tn

• f global trade in the forest

products and steel markets

Metals and Mining Forest Products

The customers we serve…

Producer/Supplier Buyer: heavy Buyer: light Recycler Financial Services and Trading Services

Scope

• Mining and forest

companies who extract and process raw materials

• Manufacturing companies

who:

• smelt ore or scrap
• convert pulp to paper

products

• Companies that sell goods

and services into the metal and forest products supply chain

• Companies that

consume metal and paper products to produce finished B2B and B2C goods where:

• Metals/paper are a

large proportion of the good

• Metal and paper

prices/forecasts are business critical

• Companies that

consume metal to produce finished B2B and B2C goods where:

• Metals/paper

are a small proportion of the good

• Metal/paper

prices are not business critical

• Companies that take

end of life goods to produce raw materials for metal and paper producers

• Companies that

trade physical commodities or buy and sell financial instruments

• Companies that use
• ur data for

forecasting earnings and performance

• Enabling M&A or

corporate finance

• Companies that

provide a range of professional services for our markets including insurance, warehousing, logistics, credit rating, risk management or management consulting services

15,000

global companies served by Fastmarkets

Clients can be split into three clusters to reflect various use cases for our prices

Primary uses Secondary uses

50,000

users of our services

Revenue by region

46%

Americas

33%

EMEA

21%

Asia and Oceania

Just below 5% of our clients have moved into licenses across all of Fastmarkets – so huge

• pportunity

In particular, the biggest success so far is that on key accounts, 25% have already migrated in metals Volume renewal rates for our Top 150 global key accounts in metals are close to 100% A significant proportion

• f large sales are multi-

year deals with escalation rates built in giving strong forward visibility of revenue

In 2018 we commissioned a major research project with a leading global pricing consultant which gave us clear pricing strategy based on the customer segmentation and the value of the product – this will help drive the value from our licensing strategy

Forest products has only recently started its license strategy which presents an opportunity

Growth will continue to be driven through penetration of data sales across our demographics in terms of segment and size

Our strategy… To be a world-leading PRA

Fastmarkets – in numbers

5,500

Prices

14

Offices

415

Employees

50

Events

£79m

FY18 Revenue 200 Forecasts

27%

FY18 Reported revenue growth

9%

FY18 Underlying revenue growth

34%

FY18 Operating profit margin

Fastmarkets aligns with Euromoney’s core 3.0 strategy: It took 100 years to get from B2B 1.0 to 2.0 but only five years from 2.0 to 3.0

1999

2003

AMM converts daily print paper to digital service

Development of world-leading Commodities PRA business

B2B 1.0 business

• Print
• Monologue
• Advertising

B2B 2.0 business

• Digital
• Dialogue
• Subscriptions

B2B 3.0 business

• Embedded in contracts and workflow
• Benchmark for the industry
• Data sales

2012

PRA strategy launched with new operating and sales model

2015

IOSCO Type 1 accreditation achieved

2017

Fastmarkets Brand launch

2018

1913

1874

AMM founded

1882

Why PRAs are attractive

We report the price of commodities

Market structure Compliance requirements Customer use-case

Illiquid, opaque and undeveloped PRA market No compliance requirements, specifications or methodology Markets use price for trends and analysis

Reference price

Increasingly sophisticated market Transparent methodology, internally validated Industry accepts a PRA’s price as the standard for physical contracts

Physical benchmark

Liquid markets Rigorous process externally audited and IOSCO compliant Transactions using exchange contracts based on PRA’s price

Financial benchmark

The business has strong financials and high barriers to entry

Barriers to Entry

Process and compliance

1

3 IOSCO

external assurance audits of our prices successfully undertaken since 2017 At the core of their markets

3

17

financial benchmark agreements in place with global exchanges Embedded within our markets

2

$73.5bn

• f trade is indexed to Fastmarkets

Forest Products suite of prices Scalable infrastructure

4

MiND

successfully on boarded all our Forest Products prices into MiND post acquisition

The world’s leading and most trusted price reporting and intelligence service for the markets that we serve

Customer Benefits

Engagement Financial Benchmarks Delivery Transparency and Controls

The building blocks to achieve success as a PRA

Building sustainable and long-term growth

We are building strong capabilities across key areas to underpin growth

7%

• f our revenue spent on

technology investment (capex and opex)

Capabilities

• Extension of data licencing strategy
• Better cross-sell opportunities via the

new Fastmarkets Platform

• New CRM to drive sales growth
• Greater penetration towards the buyer

segment of the supply chain

• Increased sales of existing content via

third-party channel partners

• World class live exchange data product

to rival Bloomberg/Refinitiv

• Launch of new Fastmarkets platform

and workflow tools

• Development of new benchmarks

within existing verticals

• Analytic and insight products
• Bolt-on acquisitions to drive cross sale
• pportunities
• Buyer segment and procurement-

focussed products

• Organic and M&A investment in to

new commodity market verticals

• Royalties from exchange contracts

referencing Fastmarkets prices

1 2 3 4

Key business growth drivers

Existing Customers New Customers Existing Products New Products

A best-in-class, integrated, sales and marketing CRM system to drive revenue

1

Enhance client value through the launch of

Fastmarkets platform –

a best-in-class technology across the PRA industry Fastmarkets Platform

Physical Price

API’s

Fastmarkets platform 3

Metals & Mining Forest Products

Q1 20

News Exchange Market data

Q1 21

Research data

2

New CRM investment now live and will drive revenue through an enhanced sales process

1

Salesforce: Opportunity Salesforce: CPQ Salesforce: DocuSign NetSuite Fusion: Platform Access Salesforce: Order Marketo: Lead

• Delivery of a new sales and

marketing stack to drive our commercial activities

• Single, closed-loop CRM across

Fastmarkets

• Many benefits across Sales,

Marketing, Finance and Operations

• Cleansed and enriched customer

data

• Integration with Group Finance

NetSuite

• Delivered iteratively, phase one

now live

3

The growth

• pportunities for

PRAs focussed in metals, mining and forestry remain significant

14 exchange futures contracts

referenced on

• ur price, plus

plans to launch three further contracts including lithium Fastmarkets at the heart of developing financial markets

4

Our Brand

Our expanding portfolio of cross-commodity businesses needed a new global identity…

Covering the domestic pulp and paper sector in China Provides the wood products industry with market and price trends

Fastmarkets structure and constituent original products

The leading authority on global non-metallic minerals pricing and intelligence Real-time exchange data platform and physical price information Global prices, news, analysis, research and forecasts for non-ferrous and ferrous metals The online resource for metals industry pricing, news and information in North America Leader in pricing, news, forecasts and industry data for the forestry products supply chain (pulp, paper and wood) Pulp, paper, packaging, recovered paper, biomass indices for European markets

Enabling Trading

In summary the drivers of our future growth will be…

Only5% of Fastmarkets clients have moved into licenses ...so growth will continue from continuing data sales

Increased

sales through the Fastmarkets Platform …driven by deeper penetration of our data A new sales and marketing technology stack …will facilitate our sales process and deliver revenue growth Fastmarkets will

target sales into

the buyer segment …which is our largest untapped addressable market

More

acquisitions ...will enable us to scale quickly in new and existing verticals

New prices and

products will continue to be developed …to drive growth within existing markets we serve, e.g. lithium

Developing

a portfolio of financial benchmarks for exchanges …will provide exciting future new revenue

• pportunities

Fastmarkets has

invested

in strong management …as well as its global workforce to reinforce its position as a world leading PRA

Technology and the Fastmarkets platform

Biographies of presenters

Kevin Smith

CTO

• Kevin joined Fastmarkets in 2016 as CTO
• Responsible for defining and driving digital transformation to support the

PRA strategy

• Kevin previously worked for RBC Capital Markets’ Structured Rates and

Counterparty Risk businesses and Barclays Capital

• Kevin worked for Microsoft for eight years and was awarded six software

patents for his inventions and the Circle of Excellence, Chairman’s Award

Emma Goddard

Head of Product, Fastmarkets Platform

• Emma joined Fastmarkets in 2011 as its first dedicated Product Manager
• Responsible for the delivery of our digital product to customers
• She is the lead product manager on the Fastmarkets Dashboard
• Primary responsibility for the Fastmarkets Platform customer experience
• Prior to joining Fastmarkets, Emma spent 15 years honing her product

management skills across a range of B2B and B2C news and data products

Our journey from B2B 2.0 to B2B 3.0

Discrete websites serving islands of data Inability to segment data Limited systems integration Opportunities to improve user experience

Best-in-class price reporting platform for the dissemination of all our commodity data, to all

• ur customers, to surface deep and engaging

market intelligence for the markets that we serve

Commodity

Metals Minerals Forest Products Other commodities…

Data Category

Physical Prices News Economic Data and Analytics Exchange Market Data FASTMARKETS PLATFORM FASTMARKETS BUSINESS

Fastmarkets platform and business alignment

Solutions Excel Add-in Desktop Web Mobile API’s

Physical Price News Exchange Market Data Research Data

Data Category

Physical Prices News Economic data and analytics Exchange Market Data FASTMARKETS PLATFORM

API’s

Physical Price News Exchange Market Data Research Data

Fastmarkets platform

What does it do?

• Premium dashboard user experience
• Scalable across all our commodity sectors
• Desktop and web versions – a single code base

Roadmap

• Metals customers on-boarding Q1 FY20
• On-boarding of Forest Products to follow
• Exchange market data
• Analytics and forecasts

Desktop and web dashboard

The Fastmarkets Platform

Demonstration

Technology strategy

B2B 3.0

Cloud native Data centric Solution centric Channel agnostic Extensible Engineering culture

Deep insights Machine learning

Solid and scalable foundation for future innovation Product development

Customer Centric

What does it do?

• Deliver physical prices to mobile devices
• Off-line caching of prices
• Native, iOS app only
• Rapid development - six weeks, by leveraging the Fusion platform

Roadmap

• Iterate on customer feedback
• Add support for Forest Products prices
• Add support for other content types

Fusion mobile experience

What does it do?

• Deliver prices to mobile devices
• Off-line access available
• Rapid development - six weeks, by leveraging the platform

Roadmap

• Iterate on customer feedback
• Forest Products customers to follow

Excel add-in – Key client workflow tool

500+

Users

160+

Companies

What does it do?

• Access to live prices within Excel
• Delivers prices into client workflows

Roadmap

• Dashboard integration
• On-boarding of Forest Products prices
• Forecasts and industry data
• Exchange market data

Fastmarkets platform roadmap

Physical Price News Metals Public availability of all platform channels Physical Price News Metals Iterate based on customer feedback Physical Price News Metals Forest Products Begin rollout for Forest Products customers Physical Price News Metals Forest Products Exchange Data Research First release of Exchange Market Data & Research

Q1

2020

Q1

2021

Phase 1 Phase 4 Phase 2 Phase 3

What customers are saying about the Fastmarkets platform

Prices API

“What a huge improvement! Video and templates! Well done!”

Excel Add-in

“…a lot more to explore now with so many new fields”

Dashboard

“I like that you can customise how you want your view” “I created 7 dashboards… it’s very good to have numbers and graphs in front of you” “It’s easy to use, and it’s easy to setup as well”

“

“We now populate all our business systems directly via the Fastmarkets API”

“

Q&A

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

Wendy Pallot 17 July 2019

Summary and Investment Proposition

■

Good revenue growth complimented by acquisitions (incl. RISI and BoardEx)

■

Margin includes

• ngoing investment

Good revenue growth in PDMI

34.7% 32.3% 29.9% 31.7% 26% 28% 30% 32% 34% 36% 70 90 110 130 150 170 FY15 FY16 FY17 FY18 Revenue (£m) Underlying revenue M&A

PDMI revenue and operating margin1 FY15-FY18

• consistency. Details of this change in methodology can be found at www.euromoneyplc.com

Operating margin (%)

Sustained growth in Fastmarkets

Key takeaways

■

Fastmarkets is a 3.0 business

■

Data markets are growing rapidly

■

Fastmarkets is a market leader

■

There are a large number of business growth drivers

■

Built on a foundation of strong management, leading technology and a trusted reputation

BoardEx

Key takeaways

■

A leader in relationship mapping

■

BoardEx is a 3.0 business

■

Significant market opportunity

■

Good growth opportunities which can be accelerated following Euromoney acquisition

• consistency. Details of this change in methodology can be found at www.euromoneyplc.com

■

Structural and cyclical industry issues causing revenue headwinds

■

Margins reasonably steady because of cost cuts, which also allowed focussed investment

■

Extel acquired in FY18 by Institutional Investor

Asset Management margins have held despite revenue headwinds

36.8% 35.0% 36.9% 36.4% 30% 31% 32% 33% 34% 35% 36% 37% 38% 100 110 120 130 140 150 FY15 FY16 FY17 FY18 Revenue (£m) Underlying revenue M&A

Asset Management revenue and operating margin1 FY15-FY18

Operating margin (%)

Investment Research self-help

Key takeaways

■

A smarter structure: 2 brands 1 infrastructure

■

Our detailed market analysis shows there is potential to grow:

• Investment Research market predicted to grow
• ver the next 5 years
• Sell-side macro is not a substitute for

independent macro

• Our product is valued by customers

■

We are professionalising sales and marketing, in particular to improve focus on new sales

22.9% 17.8% 22.5% 20.8% 10% 12% 14% 16% 18% 20% 22% 24%

• 10

20 30 40 50 60 70 80 FY15 FY16 FY17 FY18 Revenue (£m) Underlying revenue

Banking & Finance revenue and operating margin1 FY15-FY18

■

Smallest segment – 18% of FY18 group revenues

■

Stable revenues

■

Lower margin in this segment (incorporated

• ne-off Euromoney

brand loss in FY16)

Stable revenue from Banking & Finance segment

• consistency. Details of this change in methodology can be found at www.euromoneyplc.com

Operating margin (%)

Revenue growth acquired through M&A over the last 3 years

Disposed businesses1

Annual revenue £m 3-year revenue CAGR %

Total 9 disposals

76.6 5.0

Acquired businesses2

Annual revenue £m 3 year Revenue CAGR %

Total 8 acquisitions

61.9 12.4

Investment case: Transition to 3.0 B2B Information Services

Fastmarkets – fast growing PRA with strong pricing power and barriers Asset Management – self-help Recycling capital – portfolio changes; divesting low-potential assets, improving asset mix with focussed acquisitions Highly cash generative and low capital intensive business Cash on the balance sheet and £240m of unused committed borrowing facilities to support organic investment and M&A Progressive dividend policy (40% pay-out ratio)

Q&A

Agenda

2.00pm Introduction and Strategy Recap | Andrew Rashbass, Chief Executive Officer 1 2.15pm Investment Research Division | Bashar AL-Rehany, CEO, Investment Research Division & BCA Research | Chris Ciompi, Chief Marketing Officer, Investment Research Division 2 3.00pm BoardEx | Jeff Davis, CEO, Specialist Information Division 3 3.30pm Break 3.45pm Fastmarkets and Platform Demo | Raju Daswani, CEO, Fastmarkets 4 5.00pm Summary and Investment Proposition | Wendy Pallot, Chief Financial Officer 5 5.15pm Drinks and BoardEx demo Section

THANK YOU