Plan for growth – starting point Market tailwind Global assets under management 1 2008 2020 2014 $46 tr $74 tr > $100 tr 8% CAGR ~5% CAGR 1. 2008 and 2014 data from BCG. 2020 figure based on PwC Asset Management 2020 Investor Day 2016 Page 31
Plan for growth – starting point Opportunity Our market-leading platforms Trends 1. AuM growing 2. New sources of capital 3. Shifting product mix 4. Regulatory and legal 5. Fintech Investor Day 2016 Page 32
Plan for growth – starting point Big themes • Asset management 1. • Price discovery 2. • Other potential growth engines 3. Investor Day 2016 Page 33
Plan for growth – starting point Global Business Information Market Price Discovery 9% CAGR News, Research, Real-time & Trading Data, Portfolio 3% CAGR Management & Analytics Source: Burton-Taylor International Consulting LLC Note: Market size data as of 2014. CAGR based on growth over period 2010 - 2014 Investor Day 2016 Page 34
Plan for growth – starting point Why Euromoney? Factors that make price discovery an appealing proposition for us We already have The market is large Existing players are some presence and and growing doing well assets There are barriers to It is part of a broader There are potential entry and economies shift to structured acquisition targets to of scale data go after Source: BCG Investor Day 2016 Page 35
Plan for growth – starting point Example platforms Investor Day 2016 Page 36
Plan for growth – starting point Big themes • Asset management 1. • Price discovery 2. • Other potential growth engines 3. Investor Day 2016 Page 37
Plan for growth – starting point Other potential growth engines Risk and Telecoms Fintech compliance Soft Infrastructure Insurance commodities / finance agriculture Investor Day 2016 Page 38
Plan for growth – starting point Three pillars Invest Transform Actively around big the operating manage the themes model portfolio Investor Day 2016 Page 39
Plan for growth – starting point A new operating model People Marketing Sales Technology NPD China Performance Mend Solution selling Business focussed Product+ Incorporate management Secure, robust and Chinese national as Pay and benefits Pricing Commissions “New” scalable head Succession Key account Market and More Mandarin Reporting Fast planning management customer insight speaking sales Training and Brand and Sales training Mobile Product roadmap Centralised development proposition Test, fail fast, fail Client-centred Organisation Lead generation Cross-selling Collaborative cheap (top 50) Recruitment Reporting Price Coping with legacy Governance Mandarin content Investor Day 2016 Page 40
Plan for growth – starting point Transforming the operational deficit into growth Covering today Sales and marketing Price optimisation “Quadrant moving” New product New customer development approval segments Investor Day 2016 Page 41
Plan for growth – starting point Three pillars Invest Transform Actively the operating around big manage the themes model portfolio Investor Day 2016 Page 42
Actively manage the portfolio New 2015 Existing Margin: Lower margin Margin-enhancing Higher margin Quality: Lower quality Improving quality High quality Investor Day 2016 Page 43
Contents Strong hand Operating model Capital allocation Strategy Conclusion Investor Day 2016 Page 44
Potential growth New 2015 Existing 1 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 event timing differences Investor Day 2016 Page 45
Plan for growth – starting point From Strong hand Capital allocation clarity and rigour Deliverable strategy and plan Invest Transform the Actively around big operating manage the themes model portfolio Batten down the Invest hatches Use the Disinvest time wisely Investor Day 2016 Page 46
Plan for growth – starting point Running order Topic Presenter BCA Research Bashar AL-Rehany Institutional Investor Memberships & Conferences Diane Alfano Institutional Investor Research David Antin Ned Davis Research Matthias Paul Break and Demos Airfinance Danny Williams Euromoney John Orchard Metal Bulletin Raju Daswani Telcap & Telecoms Rosalind Irving M&A Christopher Fordham Q&A Investor Day 2016 Page 47
Andrew Rashbass Chief Executive Officer Strategy
Bashar AL-Rehany CEO BCA Research Inc.
BCA sits firmly in the INVEST category + Invest Cycle - + Structure - Investor Day 2016 Page 50
Favourable market trends Proportional rise in alternative and smart beta strategies 40 Fastest rising 35 segments have strong demand for high- 30 quality research 25 (US$ Tr) 20 15 10 5 0 2010 2015 2020 Alternatives Passives & ETFs Source: Integrity Research Investor Day 2016 Page 51
Market leading investment research since 1949 BCA Strengths BCA Highlights 2300 clients in 90 countries Market-leading analysis and forecasting Used by 7 of top 10 investment firms Proprietary modelling & indicators 70 strategists & analysts in 4 locations Global account management Pioneered macroeconomic themes Multi-asset investment recommendations Investor Day 2016 Page 52
Accelerated growth under Euromoney… …but operational deficit has impacted last few years 100 Operational deficit 90 80 (US$m) 70 8.7% CAGR 60 50 40 30 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Investor Day 2016 Page 53
Customer satisfaction and value BCA Research Inc. Customer Satisfaction Survey Responses (2016) 100% Of the many advisories I 90% subscribe to, BCA is my no. 1 75% : Respondents most trusted. Of course, it's rated BCA as good or 80% also the most expensive, but excellent value for I appreciate the high quality. money 70% 60% 50% 40% It is my most expensive 30% subscription, but challenging times make it essential. 20% 10% 0% Poor value Fair value Good or excellent value Source: Simon Kucher Partners analysis; *3.2% respondents answered “I don’t know” Investor Day 2016 Page 54
Addressing the operational deficit - change New product Digital delivery development Marketing & customer Commercial & pricing service Addressing the operational deficit Investor Day 2016 Page 55
BCA Edge: The future of investment research " BCA set a new benchmark. Increasing our ability to make more informed investment decisions and reducing the time it takes to convert research into actionable insight .” London-based Institutional Investment Manager “ Ease of use , access to some resource hadn't appreciated, highlight stuff you might have missed flicking through, hammers home the message” Australian Pension Fund “Just about every bank has tried to produce something, research portals, rating agencies. BCA Edge is one of the newer and best .” Asia-based Monetary Authority “ Convenient , fast , useful !” Sovereign Wealth Fund Investor Day 2016 Page 56
BCA Edge: Redefining investment research PDF-based …to Digital Platform delivery Investor Day 2016 Page 57
BCA Analytics: Unlocking BCA’s quantitative analysis Static charts …to Interactive charting Investor Day 2016 Page 58
BCA Analytics: Unlocking BCA’s quantitative analysis BCA Analytics enables us to build upon BCA’s deep expertise and experience in data analysis and modelling to quickly identify and support investment ideas. With BCA Analytics, we are able to quickly find, build upon and use charts in presentations, rapidly lowering the time this activity used to take. BCA Analytics user Investor Day 2016 Page 59
Making digital a way of life Industry Leading Digital Platform – 4 Innovation Awards Number of clients on digital platform: 281 (13%) Targeting 100 % adoption within 2 years Investor Day 2016 Page 60
New product development – expanding depth and breadth of research Deepening macro research to specific Applying macro framework to sector research Scalable stocks and FI issues research geographies and asset classes Covering 75% Expanding geographies and Expanding micro research S&P Market Cap asset classes coverage Financial Frontier Market Strategy Equity Trading Strategy Technology China Sector Strategy ETFs Tracking & Ranking Strategy Energy EM Equity Strategy BCA ETFs Healthcare EM FX/Rates Strategy FI Instruments Strategy Japan Strategy UK Strategy European Equity Strategy Investor Day 2016 Page 61
Pricing Value-based • Determine price based on customer pricing system profiling Product • Based on market segments Revenue Impact bundles + 3% per annum Detailed • Capturing client behaviour and analytics commercial data • Integrated Edge and Analytics Digital platform pricing Investor Day 2016 Page 62
Marketing and Customer Service Improve lead qualification to target adjacent market segments Enhance servicing through developing institutional sales capabilities Repurpose and redesign content to support digital native consumption habits Investor Day 2016 Page 63
Bashar AL-Rehany CEO BCA Research Inc.
BCA Research - key takeaways + • Asset management • New product development • Sales and marketing Invest • Pricing • ETFs • Delphi • Margin Cycle - + Structure - Investor Day 2016 Page 65
Diane Alfano Chairman Institutional Investor
Institutional Investor Memberships and Forums + MEMBERSHIPS Invest Cycle - + Structure - Investor Day 2016 Page 67
Institutional Investor Memberships and Forums – global presence Investor Day 2016 Page 68
Two types of institutes Marketing Peer to peer Investor Day 2016 Page 69
Institutional Investor Memberships & Forums revenues 2005 – 2015 Recent growth has been fuelled by new product launches 60 55 50 45 (US$m) New Memberships & Forums CAGR 40 9% 35 CAGR 5% 30 Existing Memberships & Forums 25 20 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Investor Day 2016 Page 70
A networking platform for institutional investors Buyers Sellers Investor Day 2016 Page 71
Origin Developed out of II’s conference business Based on three insights: 1. Allocators are seeking better ways to identify highly skilled, smaller managers. 2. We’re not fully capturing the value we create when introducing investment managers to Asset Owners at our events. 3. If an Asset Owner invests in a manager’s fund, the manager will typically make $4.8 million in fees over 5 years*. We can use data technology to make targeted introductions and capture more of that value. * Based on an average $110m mandate with fees of 88bps over 5 years Investor Day 2016 Page 72
Targeting Secure online communities provide the foundation Investor Intelligence Manager Intelligence Requests For Information Network Network (RFIs) A flow of mandates • 1,965 Institutions • 1,244 Asset Managers (manager searches) • CIOs/Senior Investors • Sales Heads • 103 countries • 39 countries • $27.5 trillion assets • 3,615 users • Av. AuM = $27 billion • Min. AuM = $500 m • Min. AuM = $1 billion Investor Day 2016 Page 73
New Discovery service for targeted searches We are best placed to ‘match make’ accurately Investor Day 2016 Page 74
Access to Discovery Institutional Investors Family offices HNWI Investment Managers Sovereign wealth • Regulated entity IIN link • Technology platform RFI Discovery Investor Day 2016 Page 75
Significant capital introduced since launch A great start: capital placed so far 4,138 252 3,865 $27.5 trn Proposals Searches Institutional Assets from conducted investors are managed by managers sent through the members the members over the platform Network $11.6 bn $26.6 bn 94 Value of Total value of Mandates mandates ‘searches’ awarded placed with posted users * Data accurate on February 11 th , 2016 Investor Day 2016 Page 76
Moving to a regulated earnings model Charging basis points on capital placed: Research with investment managers shows they are willing to pay us 15 per cent of their first-year fee on any capital they raise through RFI Service: On a $250million EME search (assuming the winning manager’s fee is 88bps), our fee = $330K Investor Day 2016 Page 77
Diane Alfano Chairman Institutional Investor
DISCLAIMERS • This presentation and any associated materials are for professional/institutional investors only. • This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction. • The contents of this presentation and the accompanying materials are confidential and for the sole use of the intended recipient. If you are not the intended recipient (or believe that you have received this presentation error) please destroy this presentation. Investor Day 2016 Page 79
Institutional Investor Memberships & Conferences - key takeaways + • Asset management • New sources of capital • Fintech Invest • New product development • No operational deficit Cycle - + Structure - Investor Day 2016 Page 80
David Antin CEO Institutional Investor Publishing
Quadrant + Invest Cycle - + Structure - Investor Day 2016 Page 82
Opportunity - Tailwind Future Today The services provided to the buy side by Changing regulation (MIFID II) will force the the sell side — namely research, sales and unbundling of these services. corporate access — are paid for through a bundled trading commission. After unbundling, the industry will need an effective way to evaluate these services Investor Day 2016 Page 83
Why Institutional Investor? Post-MIFID II Pre-MIFID II II ranks research analysts around the II will leverage its brand, relationships and globe expertise to rank all sellside services including: The buy side uses these rankings to determine the best analysts Analysts / research The sell side uses these rankings to Trading compensate their analysts and for Corporate access marketing Sales Investor Day 2016 Page 84
Challenges Main challenges Our operating structure & corporate culture Our technology Had led to: Long cycle to getting products to market (18 months) Editorially driven product development Tendency to build expensive, high-risk technology platform solutions Investor Day 2016 Page 85
Solution Bring a new product to market in three months and spend no money HOW? Instead of redeveloping the existing technology platform we are creating a scaled-down platform to take advantage of this new opportunity and quickly bring a new product to market. Investor Day 2016 Page 86
New product launch All-America Trading Survey Different voter universe Voters with short attention spans Easily cloned to cover additional geographic regions Identifying those best at various aspects of trading is highly valuable post unbundling Investor Day 2016 Page 87
Product to market OLD NEW 18 months 3 months Investor Day 2016 Page 88
Development OLD NEW Buy components Build platform (MVP) Investor Day 2016 Page 89
Budget OLD NEW $1,000,000 $50,000 Investor Day 2016 Page 90
Product development OLD NEW Editorially driven Commercially driven Investor Day 2016 Page 91
Risk of execution OLD NEW High risk Low risk Investor Day 2016 Page 92
Our progress – as of today Milestone Status Assign & recruit project team Define MVP & requirements Develop survey execution plan & budget Draft RFP and select survey vendor Gather client feedback and draft ballot Recruit panel to test ballot before launch Build ballot in new survey tool Select CRM partner & integrate Launch ballot Complete survey fielding & data clean up Mar 15 Create report & editorial feature Mar 30 Release results & meet clients to review data Mar 31 And we are on track to deliver this within the budget Investor Day 2016 Page 93
If successful, we will… Be able to launch six new surveys in the time that it previously took us to launch one Build a platform and process that can be further developed to handle the entire business. Learn from our mistakes without taking any significant risk Put ourselves in a position to integrate into or build our own corporate access administration and payment compliance tools, opening up new revenue streams for the business Have figured out how to scale II Research Investor Day 2016 Page 94
David Antin CEO Institutional Investor Publishing
Institutional Investor Research - key takeaways + • Asset management • Regulation – sellside unbundling • New product development Invest • Technology • Best of both worlds operating model Cycle - + Structure - Investor Day 2016 Page 96
Matthias Paul CEO Ned Davis Research
Where NDR sits in Euromoney’s strategy + Invest Cycle - + Structure - Investor Day 2016 Page 98
NDR – strong brand and high customer satisfaction NDR strengths Performance highlights Strong expertise around charts & data 900 clients, approx. 6,500 users Breadth of research with US focus 95% of revenues from Institutional Clients Custom research expertise 85% of revenues in North American Scalable infrastructure $50k is average subscription price High quality quant team Renewal rates >90% Reputation & brand value in the US +$5m with custom services & models Very service oriented Investor Day 2016 Page 99
NDR‘s revenues declined by 13% since the acquisition in 2011 Revenue development 2011 - 2015 -13% -1.8% 0.2% -5.3% -7.1% FY2011 FY2012 FY2013 FY2014 FY2015 Investor Day 2016 Page 100
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