FY17 results presentation Andrew Rashbass and Colin Jones 22 - PowerPoint PPT Presentation

FY17 results presentation Andrew Rashbass and Colin Jones 22 November 2017

Strategic journey Message from our Investor Day in March 2016 Message from today  2016 – no outward change  We’re on track  2017 – year of transition  2018 – year of growth Page 2

Strategy recap Page 3

Euromoney’s capital allocation decisions can be understood along two dimensions We characterise the business models of B2B information companies into three generations, which we call B2B Information 1.0, 2.0 and 3.0. Structure We service fundamentally cyclical markets. Understanding which point in the cycle they are in is fundamental to our capital allocation decisions. Cycle Plotting the businesses along the axes supports our investment decisions, capital allocation and defines strategic priorities. Quadrants Page 4

Successful B2B information companies will be 3.0 businesses Structure + - B2B Information 1.0 B2B Information 2.0 B2B Information 3.0 Print Digital Embedded in workflow Monologue Dialogue Part of the industry structure Licensing revenues based on Advertising-centric Subscriptions customer outcomes Product-centric Customer-centric Solution-centric We aim to anticipate our markets’ development to become 3.0 Page 5

Market cycles impact the sectors that we serve Cycle Equities Commodities Banking and financial institutions Equity index Commodity index Bank shares index 350 240 2,600 2,400 220 300 2,200 200 2,000 250 1,800 180 1,600 200 160 1,400 1,200 140 150 1,000 120 800 100 600 100 50 400 80 200 0 60 0 2011 2015 2018 1991 1995 1999 2003 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1990 1994 1998 2002 2006 2010 2014 2018 Source: S&P 500 index Source: Bloomberg Commodity index Source: S&P Bank index Page 6

Based on the cycle and structure we categorise the businesses in the portfolio Quadrants + B2B Information 3.0 3 4 Prepare for the upturn Invest • Protect and enhance competitive position • New product development • Selective investments for when cycle turns • Sales and marketing • Opportunistic revenue initiatives • Acquisition • Tight cost control • Fix any operational deficit Structure • Fix any operational deficit • Accelerate transition to 3.0 - + Cycle Challenged market Strong tailwinds Use the time wisely 2 Disinvest 1 • Modest investment to move to top-right quadrant • Maximise short-term profit and cash • Maximise short-term profit and cash • Divest • Fix any operational deficit • Prevent future build-up • Consider divestment - B2B Information 1.0 The quadrants guide investment decisions, capital allocation and also define strategic priorities Page 7

The actions dictated in the quadrant can be collected into our three key pillars of strategic activity Prepare for the Prepare for the 3 Prepare for the 4 3 4 3 4 Invest Invest Invest upturn upturn upturn Use the time Use the time 1 2 Use the time 1 2 1 2 Disinvest Disinvest Disinvest wisely wisely wisely Invest around big themes Transform the operating model Actively manage the portfolio Semi-opaque market Must have, not nice to have Acquisition Inefficiency Create once, sell many Challenged business models 3.0 Business model Disruption Disposal Best of both worlds Barriers to entry Product development and creating our future Actions depend on market characteristics Recycling capital operating model Page 8

Our portfolio of businesses are split into four segments composed of seven divisions with support from central functions Euromoney Institutional Investor PLC Commodity Asset Management Banking & Finance Pricing, Data & Market Intelligence Events Central functions Institutional Investment Global Market Specialist Banking & Finance Events Price Reporting Investor Research Intelligence Information Commodity Legal Corporate Development Finance Project and Asset Financing HR IT Insurance TelCap Legal, Risk and Programmes Derivatives Marketing Finance Segment Division Page 9

Active portfolio management Acquisitions Disposals  Boeing Fleet Database (January 2016)  Gulf & PE (April 2016)  Reinsurance Security (August 2016)  HedgeFund Intelligence (December 2016)  FastMarkets (September 2016)  II Intelligence (December 2016)  Broadgroup (March 2017)  Euromoney Indices (March 2017)  RISI (April 2017)  LatinFinance (March 2017)  Layer123 (April 2017)  Adhesion & WBWE (October 2017)  CEIC & EMIS held for sale – Rationale: Recycling of capital towards big investment themes – Status: process on track. Any announcement unlikely before January 2018 – Impact on FY17 numbers (slide 55) Page 10

Governance  Appointment of three independent Non-executive Directors in November: – Imogen Joss – Jan Babiak (from Dec 1) – Lorna Tilbian (from Jan 1)  Other Board changes: – Chairman/SID – DMGT representatives Page 11

From March 2016 Investor Day Strategy: achievable revenue growth (not guidance) New 2015 Existing FY14/FY15 Disinvest Batten down Use the Invest, Achievable Invest, Achievable growth the hatches time wisely Organic organic Acquisitions growth 1 (underlying) growth Margin: Lower margin Margin-enhancing Higher margin Quality: Lower quality Improving quality High quality 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

Full-year results Page 13

Full-year snapshot FY16 FY17 Change Total revenue 1 (£m) 403.1 428.4 6% Adjusted PBT 1 (£m) 102.5 106.5 4% Statutory PBT (£m) 33.4 40.7 22% Adjusted EPS 1 (p) 66.5p 76.4p 15% Dividend per share (p) 23.4p 30.6p 31% Net cash/(debt) (£m) 83.8 (154.6) 1. Includes the results of continuing and discontinued operations and reconciled in the appendix to the Preliminary Statement. Page 14

Statutory profit (£m) (20.8) 106.5 (33.7) (9.2) (5.2) 40.7 3.1 Adjusted PBT Acquired intangible Exceptional items Discontinued Associates/ Acquisition commitment Statutory PBT amortisation (slide 42) operations PBT JVs movements Page 15

Adjusted 1 results £m FY16 FY17 Change Total revenue 403.1 428.4 6% Adjusted operating profit 101.4 107.1 6% Adjusted operating margin 25.2% 25.0% (0.2%) Adjusted PBT 102.5 106.5 4% 1. Includes the results of continuing and discontinued operations and reconciled in the appendix to the Preliminary Statement. Page 16

FY16 to FY17 total revenue 1 bridge (£m) (3.0) 34.5 (1.2) 433.4 (5.0) 428.4 £41.5m Global Markets 403.1 Intelligence Division £37.1m Global Markets Intelligence Division FY16 FX Timing Net M&A FY16 underlying revenue Business revenue FY17 (restated on FY17 basis for continuing businesses) 1. Includes the results of continuing and discontinued operations. Page 17

FY16 to FY17 total revenue 1 bridge (by segment) (£m) 5.1 (4.7) 433.4 (3.0) (2.4) 428.4 Strategy & Self help Headwinds tailwinds FY16 underlying revenue Asset Pricing, Data & Banking & Commodity FY17 (restated on FY17 basis Management Market Intelligence Finance Events for continuing businesses) 1. Includes the results of continuing and discontinued operations. Page 18

FY16 to FY17 Adjusted PBT 1 bridge (£m) (2.1) 10.9 112.2 (6.4) 0.9 106.5 0.7 102.5 £11.5m Global Markets £8.8m Intelligence Division Global Markets Intelligence Division FY16 FX Timing Net M&A FY16 Underlying Adjusted PBT Central costs Business profit FY17 (restated on FY17 basis (incl interest) (incl Associates and JVs) for continuing businesses) 1. Includes the results of continuing and discontinued operations. Page 19

FY16 to FY17 underlying 1 segmental performance (£m) Commodity Events Pricing, Data & Market Banking & Finance Asset Intelligence Management Total Revenue (5.0) Associates/JVs Profit 0.7 Battening down Top-right Shifting Self-help, plus the hatches investment quadrants H1 headwinds 1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences. Page 20

Revenue turnaround since Q1 Revenue change by quarter 1 Y-o-Y % change FY17 Actuals Q4 Q1 Q2 Q3 Q4 Like-for-like 3 Subscriptions 1% 2% 1% 1% 1% and content Advertising (16%) (10%) (5%) (3%) (3%) Events (14%) 2% 4% (8%) (2%) Total 2 (5%) 1% 2% (2%) 0% 1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals and significant event timing differences. Page 21 2. Includes other revenues but excludes revenues from sold/closed businesses. FX hedging losses restated in prior year at current year level. 3. Q4 adjusted for ‘self - help’ actions and decision not to repeat events in certain markets due to increased geopolitical instabili ty.

Adjusted operating margin: year-on-year movement FY16 adjusted operating margin 25.2% FX 0.5% Timing (0.3%) Net M&A 0.3% Standalone company (0.8%) Underlying business: - Asset Management 0.7% - Pricing, Data & Market Intelligence (1.0%) - Banking & Finance 0.5% - Commodity Events (0.1%) 0.1% FY17 adjusted operating margin 25.0% Page 22