Results for the year ended 30 September 2019 Andrew Rashbass and Wendy Pallot 21 November 2019
2 Disclaimer This presentation (‘Presentation’) is prepared for and addressed only to the Company’s shareholders as a whole and to no othe r person. 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 th e 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 Gro up' 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 of 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.
3 We are We provide a global B2B information price discovery , essential services business market intelligence and events
4 Continued progress towards a 3.0 business model Fastmarkets PRA selected as LME Strategic Review of Asset Recycling capital – disposal of partner to develop the lithium Management announced in Mining Indaba benchmark September 2019 continues Launch of new Fastmarkets platform for customers Acquisition of BoardEx Strong underlying PBT growth of 9% on flat underlying revenue Continued underlying subscriptions revenue growth in PDMI of 8% (Fastmarkets 10%) offset by decline in Asset Management of 6%
5 Full-Year Results
6 FY19 reporting segments UNDER STRATEGIC REVIEW UNDER STRATEGIC REVIEW Total Pricing, Data & Banking Asset Group Market Intelligence & Finance Management Markets Commodities, telecoms, Global banking Global asset served insurance, aviation, industry management industry infrastructure, derivatives, legal Revenue 1 £401.7m | 100% £196.4m | 49% £61.2m | 15% £145.6m | 36% (£m) | (% group) Revenue 1 (by type) 60% 59% 75% 81% Subscriptions & content Events Advertising & other 26% 35% 22% 43% Adjusted operating margin 2 Segmental revenues above exclude closed/sold businesses and FX losses on forward contracts 1. Segmental operating profit margins are reported before central costs 2.
7 Group at a glance Underlying revenue growth % Adjusted revenue by currency Underlying PBT growth % 9% 3% 8% 4% 0% 73% (1%) FY17 FY18 FY19 USD GBP EUR Other FY17 FY18 FY19 60% 98% 11.0% of revenues underlying ROIC are subscription cash conversion The above results are for the total Group, including Asset Management
8 Full-year summary ■ Underlying revenue flat; strong growth Change Underlying Restated in PDMI offset by continued challenges 2019 2018 % % in Asset Management Adjusted revenue (£m) 401.7 390.3 3% 0% ■ Underlying operating profit margin up Adjusted operating profit margin 26% 26% - 1ppt 1ppt reflecting cost savings in Asset Management and the centre Adjusted profit before tax(£m) 104.6 99.9 5% 9% ■ Underlying profit before tax up 9% Adjusted effective tax rate 20% 20% - reflects the improvement in operating profit and lower interest costs Adjusted diluted EPS 77.6p 73.6p 5% ■ Adjusted effective tax rate in line with Dividend per share 33.1p 32.5p 2% guidance at 20%; FY20 expected to be Net cash (£m) 50.1 78.3 unchanged at 20% Underlying cash conversion 98% 102% ■ FY18 results have been restated (see page 38) ■ Full year dividend up 2%
9 Underlying revenue flat 2018 to 2019 adjusted and underlying revenue bridge (£m) Underlying business revenue growth (5.4) 401.7 11.4 2.0 0.5 by segment 2.8 399.2 Pricing, Data 390.3 & Market Intelligence £7.4m Asset Management (£6.4m) Banking & Finance (£0.5m) FY18 Adjusted FX Timing & Net M&A and FY18 Underlying Impact of Underlying FY19 Adjusted 1 revenue adjustments closed revenue closed business revenue businesses businesses revenue Timing and adjustments mainly consists of IMN’s SFIG Vegas event being discontinued (February 2018) and the closure of II pri nt magazine (April 2018) 1.
10 Underlying PBT growth of 9% 2018 to 2019 adjusted and underlying profit bridge (£m) Underlying business profit growth by 2.6 104.6 segment (3.4) 4.1 3.3 (5.1) 99.9 2.8 95.5 0.4 Pricing, Data & Market Intelligence £3.4m Asset Management £0.2m Banking & Finance (£1.0m) FY18 Restated FX Timing & Net M&A and FY18 Impact of Central costs Net Interest Underlying FY19 Adjusted 1 adjusted PBT adjustments closed Underlying PBT closed business profit PBT businesses businesses (incl Associates and JVs) Timing and adjustments mainly consists of IMN’s SFIG Vegas event being discontinued (February 2018) and the closure of II pri nt magazine (April 2018) 1.
11 2019 Adjusted revenue and profit matrix by segment Adjusted Revenue (£m) Profit (£m) Advertising Subscriptions Events /Other Total Total 117.9 (6%) 16.9 6% 10.8 2% 145.6 (4%) 62.1 0% Asset Management 115.5 8% 61.6 1% 19.3 (6%) 196.4 4% 69.4 5% Pricing, Data & Market Intelligence 7.2 (6%) 45.7 1% 8.2 (6%) 61.2 (1%) 13.7 (8%) Banking & Finance 240.6 0% 124.2 2% 38.3 (4%) 403.2 0% 145.2 2% Sub-total FX losses of forward contracts (3.5) (3.5) (3.5) Closed & Sold Businesses 2.0 2.0 0.4 (36.7) 8% Central costs Adjusted revenue/Operating profit 240.6 126.2 34.8 401.7 105.4 5% Key to colours Growth more than 2% Growth of 0% to 2% Decline of 0% to -1% Decline of -1% to -5% Decline more than -5% Not colour-coded due to their small size The percentages above are underlying growth rates, and the colours reflect the growth rate bandings per the key.
12 Pricing, Data & Market Intelligence ■ Good underlying growth in revenue (+4%) and operating profit (+5%) Underlying growth ■ Strong growth in underlying subscriptions revenue (59% of segment Revenue revenue) at 8% for the full year, with Fastmarkets at 10% ■ Events returned to growth in H2 (+4%) after delegate marketing 7% 4% challenges impacting H1 (-4%) were resolved FY18 FY19 ■ Adjusted operating profit margin reduction due to acquisition, partly offset by better business performance Operating profit ■ BoardEx fully integrated with proforma underlying revenue growth of 11% 1 18% ■ Launch of new Fastmarkets platform replacing 12 customer facing websites 5% FY18 FY19 Adjusted operating profit margin 36% 35% Proforma adjustments are to reflect full year results as BoardEx was acquired in February 2019 1.
13 Asset Management ■ Operating profit flat; annualised FY18 restructuring savings offset by Underlying growth investment in sales and marketing resource, which is now complete , and Revenue ongoing industry challenges ■ Underlying revenue down 4%, continued decline in subscriptions offset by (4%) (4%) growth in events, including 8% growth at BCA’s annual conference in Q4 ■ Lower new sales at BCA in Q4, however, very strong performance in Asia (12% of the book of business) FY18 FY19 ■ New sales in Europe impacted by uncertainty due to Brexit Operating profit ■ Closure of Centre for Investor Education (CIE) events business in Australia 0% (FY19 revenue £2m) (4%) ■ Operating profit margin 43%, up 2ppts due to the restructuring savings FY18 FY19 Adjusted operating profit margin 41% 43%
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