FY18 Half-year results presentation Andrew Rashbass and Colin Jones 17 May 2018
Strategy recap Page 2
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 3
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 4
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 5
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 6
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 7
Our portfolio of businesses are split into four segments composed of six divisions with support from central functions Euromoney Institutional Investor PLC Commodity Asset Management Banking & Finance Pricing, Data & Market Intelligence Events Central functions Specialist Institutional Investment Price Reporting Telcoms Banking & Finance Information Investor Research Legal Media Group Corporate Development Finance Project and Asset Financing HR Insurance IT Legal, Risk and Programmes Derivatives Marketing Segment Division Page 8
Headlines Good first-half performance: total revenue up 3%, Adjusted PBT up 6% Significant growth in Pricing, Data & Market Intelligence segment outpacing weak Asset Management, particularly BCA Strong growth from events businesses across all sectors, particularly from large, annual events Active portfolio management continues Sale of Global Markets Intelligence Division completed in April Strong underlying cash generated from operations, bringing net debt down to £37m (before Global Markets Intelligence Division net cash of £103m) Second half – more of the same, both ways Page 9
Half-year results Page 10
Half-year snapshot H1 H1 Change FY17 FY18 Total revenue 1 (£m) 203.2 209.6 3% Adjusted PBT 1 (£m) 49.1 52.0 6% Adjusted operating margin 1 24.1% 25.5% 1.4% Statutory PBT (£m) 9.3 121.1 Adjusted EPS 1 (p) 32.7 38.4p 17% Dividend per share (p) 8.8 10.2 16% Net debt (£m) (83.6) (37.0) 46.6 1. Includes the results of continuing and discontinued operations and is reconciled in the appendix to the Interim Financial Report. Page 11
H1 FY17 to H1 FY18 total revenue 1 bridge (£m) 209.6 6.5 (4.7) 203.2 4.6 203.1 H1 FY17 FX Net M&A H1 FY17 underlying revenue Business growth H1 FY18 (incl GMID) (restated on H1 FY18 basis for continuing businesses) Page 12 1. Includes the results of continuing and discontinued operations.
H1 FY17 to H1 FY18 total revenue 1 bridge (by segment) (£m) 209.6 2.0 2.4 6.1 (4.0) 203.1 Business revenue growth £6.5m H1 FY17 underlying revenue Asset Pricing, Data & Banking & Commodity H1 FY18 (restated on H1 FY18 basis Management Market Intelligence Finance Events for continuing businesses) 1. Includes the results of continuing and discontinued operations. Page 13
H1 FY17 to H1 FY18 Adjusted PBT 1 bridge (£m) 52.0 5.1 (3.8) 50.7 1.3 0.3 49.1 Central costs (£2.6m) Interest (£1.2m) H1 FY17 FX Net M&A H1 FY17 Central costs Business profit H1 FY18 (incl GMID) Underlying Adjusted PBT (incl interest) (incl Associates and JVs) (restated on H1 FY18 basis for continuing businesses) 1. Includes the results of continuing and discontinued operations. Page 14
H1 FY17 to H1 FY18 underlying 1 segmental performance (£m) Pricing, Data & Market Asset Banking & Finance Commodity Events Intelligence Management Total 2.0 2.4 6.1 Revenue (4.0) 6.5 Associates/JVs 0.7 1.9 1.0 Profit 3.1 5.1 (1.6) Structural headwinds in Continued investment US and China Restructuring of Mining Indaba Investment Research, in top-right quadrant Zanbato ownership events profit protection 1. At constant exchange rates, including pro forma prior year comparatives for acquisitions and excluding disposals, discontinued operations. Page 15
Underlying 1 revenue by type Revenue change by quarter Y-o-Y % FY17 Actuals H1 FY18 Actuals change Proportional Q1 Q2 Q3 Q4 Q1 Q2 Split Subscriptions 1% 2% 1% 1% 2% 1% 58% and content Advertising (16%) (10%) (5%) (3%) (5%) (5%) 8% Events (14%) 2% 4% (8%) 9% 12% 34% Total (5%) 1% 2% (2%) 3% 4% 100% Page 16 1) 2017 and 2018 percentages include other revenues but excludes revenues from sold/closed businesses. In 2018 only, discontinued operations are excluded from the percentages for both quarters.
H1 FY18 revenue and profit matrix by segment/type 1 (incl GMID) Revenue (£m) Profit (£m) Subscriptions/ Content Advertising Events Other Total Total (6%) 5.7 (10%) 3% 0.0 (16%) (5%) (6%) 59.9 6.4 72.0 27.1 Asset management 9% (2%) 9% 0.5 (26%) 8% 13% 64.0 5.5 18.7 88.7 30.5 Pricing, data & market intelligence 5% (4%) 12% (7%) 8% 19% 4.1 3.8 22.7 0.5 31.1 6.5 Banking & finance 15% 0.3 (33%) 15% 30% N/A N/A 15.2 15.5 8.4 Commodity events 2% (5%) 11% 1.3 (21%) 4% 7% 128.0 15.0 63.0 207.3 72.5 Total segment revenue/profit Closed & sold businesses/ 2.3 (20.5) - central costs (incl FX/interest/associates & JVs) 4% 4% 209.6 52.0 Total revenue/Adjusted PBT 1. Figures are total revenues for the period; percentages are underlying growth rates compared to the same period in 2017. See slide 40 for notes and colour key Page 17
H1 FY18 revenue and profit matrix by segment/type 1 (excl GMID) Revenue (£m) Profit (£m) Subscriptions/ Content Advertising Events Other Total Total (6%) 5.7 (10%) 3% 0.0 (16%) (5%) (6%) 59.9 6.4 72.0 27.1 Asset management 12% (2%) 9% 0.5 (30%) 10% 15% 43.5 5.5 18.7 68.2 23.9 Pricing, data & market intelligence 5% (4%) 12% (7%) 8% 19% 4.1 3.8 22.7 0.5 31.1 6.5 Banking & finance 15% 0.3 (33%) 15% 30% N/A N/A 15.2 15.5 8.4 Commodity events 1% (5%) 11% 1.3 (23%) 4% 7% 107.5 15.0 63.0 186.8 65.9 Total segment revenue/profit Closed & sold businesses/ 2.3 (20.5) - central costs (incl FX/interest/associates & JVs) 4% 3% 189.1 45.4 Statutory revenue/Adjusted PBT Increasing divergence in subscriptions performance between Asset Management and Pricing, Data & Market Intelligence Strong underlying growth from events portfolio, reflecting focus on large ‘must - attend’ annual events Advertising drag, but represents only 8% of H1 revenue 1. Figures are total revenues for the period; percentages are underlying growth rates compared to the same period in 2017. See slide 40 for notes and colour key Page 18
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