Coronavirus COVID-19 Update Call Andrew Rashbass and Wendy Pallot 11 March 2020
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 Coronavirus COVID-19 ■ Highly disruptive and very fast moving ■ Priority is the health and wellbeing of our employees, customers and other business partners ■ Taking decisions that are right for our staff, customers and the long-term health of the business ■ Some events already cancelled or postponed. More under review in consultation with customers ■ Using virtual events introduced in some cases, with good customer response
4 Events portfolio in context ■ June and September are particularly large months for events ■ Successfully run events with £42m of revenue to end February 2020 ■ Shift to 3.0 events – increasing focus on facilitating deal-making at events – is increasing the value of face-to-face meetings
5 FY19 event revenue by segment by quarter 45 40 35 30 25 £m 20 15 10 5 0 QTR to Dec QTR to March QTR to June QTR to Sept DMI FastMarkets Asset Management
6 Definite financial impact so far ■ So far we have cancelled 25 events with a revenue impact of £3m ■ We have postponed 55 events, with 9 moving into FY21, with total FY20 revenue impact of postponement of £3m ■ Overall impact on FY20 is to reduce revenue by £6m and gross profit by £5m before mitigating cost savings ■ Taken cost action to mitigate some of the effect on short term profitability, while protecting the long-term
7 Events exposure to end June 2020 ■ Financial profile for remaining events from now to June 2020 is: □ Revenue approximately £40m □ Gross profit, including committed costs, approximately £30m ■ Some events may run, some may be postponed into later months in FY20 – no firm decisions at this stage. Particularly hard to know what the position will be for June Events revenue by month Events revenue by geography 30 Other Asia 7% 8% UK 25 8% Europe 20 21% £m 15 10 Middle East 5 2% North America 0 54% March (remainder) April May June
8 Strong balance sheet ■ Net cash at end February of £12.2m, after payment of final dividend ■ Unutilised committed facilities of £240m ■ No debt maturities ■ Low capital intensity business ■ High cash conversion (98% in FY19), driven by subscriptions
9 Summary ■ Priority is the health and wellbeing of our employees, customers and other business partners ■ COVID-19 is fast moving and disruptive but we are working proactively with customers to manage the impact on events ■ Strong event brands and customer relationships position our events for the long term ■ Euromoney has a high proportion of subscription revenue and very strong balance sheet
10 Q&A
11 Investor Relations contacts Euromoney Institutional Investor PLC FTI Consulting Wendy Pallot | Chief Financial Officer Charles Palmer Chris Collett | Investor Relations Jamie Ricketts 8 Bouverie Street 200 Aldersgate, Aldersgate Street London London EC4Y 8AX EC1A 4HD Tel: +44 (0)20 7779 8888 Tel: +44 (0)20 3727 1000
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