[PPT] - Investor PLC 2012 Results Presentation Colin Jones, Finance PowerPoint Presentation

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Euromoney Institutional Investor PLC

2012 Results Presentation

Colin Jones, Finance Director

November 15, 2012

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2012 RESULTS PRESENTATION

Financial Review
Trading Review
Strategy/Outlook

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RECORD PROFITS1

£m 2010 2011 2012 Change Revenue 330.0 363.1 394.1 +9% Adjusted PBT1 86.6 92.7 106.8 +15%

Statutory PBT1 71.4 68.2 92.4 +35%

Adjusted EPS1 53.5p 56.1p 65.9p +17% Dividend 18.0p 18.75p 21.75p +16% Net debt 128.8 119.2 30.8 (88.4)

1As reconciled in appendix to chairman’s statement

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KEY MESSAGES

 Revenues up 9% to £394.1m  Underlying revenues up 3% (excluding NDR)  Subscription revenues up 17%: now >50% of revenues  Adj PBT up 15% to £106.8m, helped by NDR contribution  CAP profit target achieved, leading to FY13 vesting  Operating margin unchanged at 30%  Continued investment in new products and technology  Strong operating cash flows reduced debt by £88.4m to £30.8m  Final dividend increased by 18% to 14.75p a share  Outlook challenging, trading in line with board expectations

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FINANCIAL HIGHLIGHTS

 Net debt reduced by £88.4m to £30.8m since Sept 30  Cash conversion 103% (2011: 108%)  Adjusted net finance costs down £1.6m to £5.6m  Average cost of funds 4.8% (2011: 5.7%)  EPS benefits from falling tax rate  Final dividend 14.75p (2011:12.50p) with no scrip alternative  Total dividend 21.75p (2011:18.75p) reflecting 3x cover  EPS for dividend purposes adjusted for accelerated CAP cost

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CASH FLOW / NET DEBT

6 £119.2 £6.5 £15.3 £7.5 £6.6 £(2.1) £(122.2) £30.8 September 30 2011 Acquisitions Tax Dividends Other (CAPEX, interest, share issue & derivatives) FX movements Operating cash flow September 30 2012

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NET FINANCE COSTS

£m 2011 2012 Interest on debt facility (7.0) (4.7) Interest on tax (0.3) (1.0) Other 0.1 0.1 Underlying net finance costs (7.2) (5.6) Acquisition deferred consideration (1.8)

Acquisition option commitments

(0.6) 2.0 Statutory net finance costs (9.6) (3.6)

See note 5

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TAX

£m 2011 2012 Adjusted PBT 92.7 106.8 Statutory tax charge (22.5) (22.5) Add: other tax adjustments (1.7) (0.8) Underlying tax charge (24.2) (23.3) Underlying tax rate 26% 22%

See note 6

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Underlying tax rate 23-24% for FY13 depending on profit mix

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CAP

 Total cost £30m spread over CAP life  Profit target achieved 2 years earlier than expected in FY11, leading to £6.6m accelerated CAP cost...  ...offset by reduced CAP cost in FY12 to FY14 £m FY11 FY12 FY13 FY14 CAP 2010 15.9 8.1 2.2

CAP 2004
(1.8)
Actual CAP cost

15.9 6.3 2.2

(Acceleration)/reversal

(6.6) 1.1 4.0 1.5 Underlying CAP cost 9.3 7.4 6.2 1.5  Accelerated CAP cost excluded from Adjusted PBT to avoid distortion of underlying trading performance – but added back for dividend purposes  Q2 FY13 vesting: 1.75m shares and £7.5m cash

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IMPACT OF FX

USD 2012 2011 Average rates 1.58 1.61 Closing rates 1.61 1.58 USD 1¢ movement Revenue +/- £1.5m Profit +/- £0.5m

1Before effect of FX hedging

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US$ 67% £ 23% € 6% Other 4%

Revenue 1

US$ 70% £ 20% € 7% Other 3%

Profit before tax 1

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2012 RESULTS PRESENTATION

Financial Review
Trading Review
Strategy/Outlook

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TRADING SUMMARY

£m 2010 2011 2012 change Revenue 330.0 363.1 394.1 +9% Adjusted operating profit1 100.1 109.0 118.2 +8% Adjusted PBT1 86.6 92.7 106.8 +15% Operating margin 30.3% 30.0% 30.0%

1As reconciled in appendix to chairman’s statement

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TRADING HIGHLIGHTS

 Total revenues up 9%, underlying revenues up 3%  H2 underlying revenues broadly same as FY11  No significant FX impact  Underlying subscription revenues up 5% continuing the good momentum from 2011, largely CEIC and BCA  Pressure on advertising and sponsorship continued into H2  Profits from Business Publishing same as from Financial Publishing  Margin constant at 30%:

 Headcount tightly controlled  Investment in technology and new products £10m vs £9m

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REVENUE BY TYPE

£m 2011 2012 change @ constant fx rates Subscriptions 171.0 199.7 +17% +16% Advertising 62.7 58.4

7%
8%

Sponsorship 48.8 47.6

2%
4%

Delegates 75.0 80.1 +7% +6% Other/closed 9.4 9.7 +3% +2% 366.9 395.5 +8% +7% FX loss on forward contracts (3.8) (1.4) Total 363.1 394.1 +9% +8%

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REVENUE BY TYPE (ex NDR)

£m 2011 2012 change @ constant fx rates Subscriptions 166.4 175.4 +5% +4% Advertising 62.7 58.4

7%
8%

Sponsorship 48.8 47.6

2%
4%

Delegates 75.0 80.1 +7% +6% Other/closed 9.4 9.7 +2% +2% 362.3 371.2 +2% +1% FX loss on forward contracts (3.8) (1.4) Total 358.5 369.8 +3% +2%

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REVENUE CHANGE BY QTR

Y-o-Y % change FY2011 FY2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subscriptions +13% +13% +3% +17% +25% +20% +21% +3% Advertising +24% +6% +1% +7%

13%
4%
10%

Sponsorship +37% +32% +14% +7% +2%

1%
7%
Delegates

+20% -11% +4% +16% +10% +30%

9%

Other +15% -37% -21% -27% -13% +21%

3%

+14% Total +19% +6% +4% +12% +11% +15% +7%

1%

Total1 +21% +7% +4% +11% +11% +16% +9%

2%

1 After effect of FX hedging

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REVENUE CHANGE BY QTR (ex NDR)2

1After effect of FX hedging 2 At constant exchange rates

Y-o-Y % change FY2011 FY2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Subscriptions +11% +14% +10% +9% +9% +5% +5% +1% Advertising +21% +8% +7% +10% -13%

5%
1%
11%

Sponsorship +34% +35% +23% +12% +2%

1%
9%
2%

Delegates +18% -11% +8% +18% +10% +31%

1%
10%

Other +11% -37% -18% -26% -13% +20%

4%

+14% Total +16% +7% +10% +10% +4% +8%

4%

Total1 +18% +8% +10% +9% +3% +8% +1%

2%

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REVENUE MIX

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Emerging markets account for 28% of direct revenues Subscription revenue >50% for first time

Advertising 15% Subscriptions 51% Sponsorship 12% Delegates 20% Other 2%

Revenue by type

US 42% UK 14% Eastern Europe 5% Western Europe 16% Africa 3% Asia 13% ROW 1% Middle East 3% Latin America 3%

Revenue by destination

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REVENUE BY DIVISION

£m 2011 2012 Change @ constant fx rates Financial Publishing 83.8 77.1

8%
9%

Business Publishing 59.5 64.6 +9% +8% Training 32.5 31.2

4%
5%

Conferences & Seminars 86.2 92.3 +7% +6% Research & Data 104.4 130.3 +25% +24% Closed Businesses 0.5

100%
100%

366.9 395.5 +8% +7% FX loss on forward contracts (3.8) (1.4)

63%
68%

Total 363.1 394.1 +9% +8%

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REVENUE BY DIVISION (ex NDR)

£m 2011 2012 Change @ constant fx rates Financial Publishing 83.8 77.1

8%
9%

Business Publishing 59.5 64.6 +9% +8% Training 32.5 31.2

4%
5%

Conferences & Seminars 86.2 92.3 +7% +6% Research & Data 99.8 106.0 +6% +6% Closed Businesses 0.5

100%
100%

362.3 371.2 +2% +1% FX loss on forward contracts (3.8) (1.4)

63%
68%

Total 358.5 369.8 +3% +2%

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OPERATING PROFIT BY DIVISION1

£m 2011 2012 Change Financial Publishing 28.2 24.9

12%

Business Publishing 23.4 24.5 +5% Training 7.8 7.0

11%

Conferences & Seminars 26.6 29.0 +9% Research & Data 42.5 55.4 +30% Corporate/closed businesses (19.5) (22.6) +16% Total 109.0 118.2 +8%

1Before effect of FX hedging

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OPERATING PROFIT BY DIVISION (ex NDR)1

£m 2011 2012 Change Financial Publishing 28.2 24.9

12%

Business Publishing 23.4 24.5 +5% Training 7.8 7.0

11%

Conferences & Seminars 26.6 29.0 +9% Research & Data 41.3 46.4 +12% Corporate/closed businesses (19.5) (22.6) +16% Total 107.8 109.2 +1%

1Before effect of FX hedging

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OPERATING MARGIN BY DIVISION

FY 2011 H1 2012 H2 2012 FY 2012 Financial Publishing 34% 30% 34% 32% Business Publishing 39% 34% 41% 38% Training 24% 20% 25% 22% Conferences & Seminars 31% 34% 29% 31% Research & Data 41% 43% 42% 43% Total1 30% 30% 30% 30%

1After corporate costs

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2012 RESULTS PRESENTATION

Financial Review
Trading Review
Strategy/Outlook

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GROWTH DRIVEN STRATEGY

Strategy designed to build a more focused, more robust and higher quality global information and events business  (1) Maintain tight cost control and focus on high margins  (2) Drive organic growth:

 Increase share of revenues derived from subscriptions  Invest in new online data and research products  Invest in technology to accelerate print to online migration  Improve product quality through editorial investment  Focus on synergies – quality and effectiveness of marketing  Roll out successes to new geographies esp emerging markets

 (3) Using healthy b/s and strong cash flows for selective acquisitions to accelerate growth and build market share  (4) Retain and foster entrepreneurial culture

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GROWTH DRIVERS

£m % of Growth Profit1 Revenue FY 2002 35.2 179.7 Acquisitions 31% 33.0 95.1 Post-acquisition growth 39% 40.8 77.1 Organic growth 30% 31.8 42.2 FY 2012 140.8 394.1 CAGR 15% 8%

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1Adjusted operating profit excluding corporate costs

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REVENUE MIX

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Advertising 37%

Subscriptions 29%

Sponsorship 21% Delegates 7% Other 6%

2002

Advertising 15% Subscriptions 51% Sponsorship 12% Delegates 20% Other 2%

2012

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ADVERTISING REVENUE

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56.6 55.7 53.3 58.6 65.4 66.5 54.8 57.6 62.7 58.4 10 20 30 40 50 60 70 80 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 £'m Advertising revenue Average

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PROFIT BY DIVISION

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Financial Publishing 40% Business Publishing 18% Events 37% Research & Data 5%

2002

Financial Publishing 18% Business Publishing 17% Events 26% Research & Data 39%

2012

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EUROMONEY 10 YEAR RECORD

30 158.9 174.7 194.8 220.5 305.2 332.1 317.6 330.0 363.1 394.1 21.3 28.0 34.7 37.0 55.5 67.3 63.0 86.6 92.7 106.8 15.0 25.0 35.0 45.0 55.0 65.0 75.0 85.0 95.0 105.0 115.0 125.0 135.0 145.0

120.0 140.0 160.0 180.0 200.0 220.0 240.0 260.0 280.0 300.0 320.0 340.0 360.0 380.0 400.0 420.0

Revenue Adjusted PBT

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OUTLOOK

 Uncertainty persists over Eurozone, US fiscal cliff, China and Middle East politics  Bank profitability remains under threat, exacerbated by increased regulation: cost cutting inevitable  FY13 profits helped by reductions in central costs, CAP and net interest  Cash flows remain strong, but no scrip dividend and increased outflows for CAP and capex  Outlook uncertain - sticking to successful strategy:

 Manage margins tightly  Maintain investment in digital transition  Focus on emerging markets

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