Results for the six months ended 31 March 2019 Andrew Rashbass and Wendy Pallot 16 May 2019
2 We are We provide a global B2B information price discovery , essential business market intelligence and events
3 Headlines Strategic & Operational Financial Continued progress towards a 3.0 business 1% underlying revenue growth with strong ■ ■ model underlying profit growth of 13% Acquisition of BoardEx and The Deal Continued underlying subscriptions growth ■ ■ in February 2019 for $87.3m in Pricing, Data & Market Intelligence of 8% (Fastmarkets 12%) Mining Indaba sale completed in ■ October 2018 for £30.1m Underlying Asset Management profit growth ■ of 5% showing benefit of cost savings in FY18 Increased market recognition of pricing ■ to mitigate the impact of headwinds products Strong underlying cash conversion of 98% ■ DMGT transaction completes phased ■ transition to fully independent FTSE 250 Strong balance sheet with net cash of £29.3m ■ Note: For a reconciliation of Statutory to adjusted and underlying results please refer to pages 6 to 9 of the Half-Year Report 2019
4 Phased transition to fully independent FTSE 250 Benefits of the DMGT Increased Higher Fully Facilitate better access to liquidity free float independent Board capital transaction 2018 Pre- 2015 2017 & 2015 2019 ■ DMGT owns 67% of ■ Andrew Rashbass ■ DMGT reduces stake ■ Sir Patrick Sergeant steps down from Euromoney appointed as first CEO to 49% Board and appointed Life President ■ Unconventional Board ■ John Botts appointed ■ Euromoney builds ■ Leslie Van de Walle appointed as Non- structure including as first Non-Executive standalone capabilities Executive Chairman and two further Founder, six executives Chairman independent NEDs appointed ■ Two new independent and two DMGT ■ Five executives step NEDs appointed ■ Wendy Pallot appointed as CFO representatives down from the Board to ■ DMGT distribution of interest to DMGT ■ Reliance on DMGT for create more normal non- shareholders in April 2019. Fully important corporate executive (NED) and independent Board, 50% female functions executive balance
5 H1 2019: Group at a glance Adjusted 1 revenue by type LTM 2 Adjusted 1 revenue by currency LTM 2 Underlying 1 revenue growth % 4% 1% (2%) (6%) Subscriptions Advertising Events Other USD GBP EUR Other H1 2016 H1 2017 H1 2018 H1 2019 58% 69% of revenues of revenues are subscription are in US dollars 11.2% 25% 98% adjusted 1 operating LTM 2 underlying 1 12 month cash conversion 3 ROIC profit margin For a reconciliation of Statutory to adjusted and underlying results please refer to pages 6 to 9 of the Half-Year Report 2019 1. LTM = Last twelve months, i.e. the 12 months ended 31 March 2019 for the above 2. Underlying cash conversion adjusted for timing differences and exceptional items 3.
6 What we do Asset Pricing, Data & Banking & Management Market Intelligence Finance Markets Global asset Commodity markets, Global banking management industry telecoms, insurance, aviation, industry served infrastructure, derivatives, legal Revenue 1 (£m) £73.0m £89.7m £23.6m (% group) 39% 48% 13% Revenue 1 (by type) Subscriptions & content Advertising Events Other Operating Margin 2 41% 36% 15% For a reconciliation of Statutory to adjusted and underlying results please refer to pages 6 to 9 of the Half-Year Report 2019. Revenues above are from continuing operations, excluding 1. closed/sold businesses and FX losses on forward contracts for the six months ended 31 March 2019 Before central costs 2.
7 Half-Year Results
8 Half-year summary ■ Underlying revenue up 1% – Fastmarkets H1 H1 Underlying 1 subscriptions offsetting continued headwinds 2019 2018 % in Asset Management and challenges in event Adjusted 1 Revenue (£m) delegate marketing 184.9 189.1 1% ■ Underlying operating profit margin up 1ppt – Adjusted 1 operating profit 25% 25% 1ppt savings in restructured Asset Management margin ■ Underlying profit before tax up 13% – Profit Adjusted 1 profit before tax(£m) 46.1 45.6 13% flow through of PDMI subscriptions growth, savings in restructured Asset Management Effective tax rate 20% 20% and lower net interest costs Adjusted 1 diluted EPS 34.3p 33.6p ■ Effective tax rate guidance unchanged at 20% Dividend per share 10.8p 10.2p 6% Net cash/(debt) (£m) 29.3 (37.0) Underlying 1 cash conversion 2 98% 108% For a reconciliation of Statutory to adjusted and underlying results please refer to pages 6 to 9 of the Half-Year Report 2019 1. LTM = Last twelve months, i.e. the 12 months ended 31 March 2019 and March 2018 for the above 2.
9 Underlying revenue growth of 1% H1 2018 to H1 2019 adjusted and underlying revenue 1 bridge (£m) Underlying 1 Business Revenue Growth: in focus 209.6 (20.5) Business Revenue Business Revenue Growth by Growth by (6.0) Segment Type 5.2 (4.6) 189.1 Banking & Finance 184.9 1.2 183.7 £1.0m Events £1.6m Pricing, Data & Market Intelligence £2.3m H1 2018 Discontinued H1 2018 FX Timing & Net M&A H1 2018 Business H1 2019 1 1 Subs & Content 3 1 Previously Operations Statutory Adjustments Underlying Revenue Adjusted £0.4m Stated Total Revenue Revenue Growth Revenue Asset 2 Revenue (pre H1 2019 Management Advertising underlying (£2.1m) (£0.8m) movement) For a reconciliation of Statutory to adjusted and underlying results please refer to page 37 of this presentation and pages 6 to 9 of the Half-Year Report 2019 1. For a reconciliation of previously stated total to statutory revenue in H1 2018, please refer to the Half-Year Report 2018 2. Adjustments include IMN’s SFIG Vegas event being discontinued (February 2018), and the closure of II print magazine (April 2018) and timing adjustments for movement of significant events 3.
10 Underlying PBT growth of 13% H1 2018 to H1 2019 adjusted and underlying profit 1 bridge (£m) (6.4) 52.0 Underlying Business Profit by Segment (1.9) 2.2 Pricing, Data 2.5 46.1 (5.1) & Market 45.6 Intelligence 2.2 £1.0m 0.6 40.8 Asset Management £1.5m H1 2018 Discontinued H1 2018 FX Timing & Net M&A H1 2018 Central Costs Interest Business H1 2019 1 1 2 1 1 3 Adjusted PBT Operations Adjusted PBT Adjustments Underlying Profit Adjusted PBT Associates/JVs £0.0m PBT (pre H1 2019 Banking & Finance £0.0m underlying movement) For a reconciliation of Statutory to adjusted and underlying results please refer to page 37 of this presentation and pages 6 to 9 of the Half-Year Report 2019. The initial Adjusted PBT as shown above excludes £69.1m 1. relating to exceptional items that are included in H1 2018 Statutory PBT Adjustments include IMN’s SFIG Vegas Event being discontinued (February 2018), and the closure of II print magazine (April 2018) and timing adjustments for movement of significant events 2. Business profit of £2.5m includes £0.05m profit from Associates and JV’s 3.
11 Pricing, Data & Market Intelligence (PDMI) Underlying growth ■ Continued growth against strong comparables – underlying 8% growth in subscriptions revenue with Fastmarkets at 12% (H1 2018: 12%) Revenue ■ Fall in underlying events revenue (34% of PDMI revenues) of 4% due to challenges in delegate marketing offset by Telcap’s successful Capacity 11% Europe conference. Net effect reduced underlying Group revenue growth 3% by c. 1ppt H1 FY18 H1 FY19 ■ Acquisition of BoardEx and The Deal in February 2019 Operating profit ■ Fastmarkets ( 64% of PDMI Subscription revenue) continues to upgrade customers to data licensing solutions ■ H2 roll out of Fastmarkets Intelligence platform – best-in-class price 19% reporting and analytics platform to customers 3% H1 FY18 H1 FY19 Adjusted operating profit margin 36% 36%
12 Asset Management Underlying growth ■ Return to operating profit growth – reflecting £7m annualised savings in restructured Asset Management in FY18 (and investment in sales and Revenue marketing resource) (3%) ■ Revenue down 3% (H1 2018: down 5%) – advertising and events revenue (5%) growth offsetting continued decline in subscriptions ■ Operating profit margin 41%, up 3ppts due to savings in restructured H1 FY18 H1 FY19 Asset Management ■ New sales in the UK for discretionary European institutes in Institutional Operating profit Investor being affected by Brexit 5% (6%) H1 FY18 H1 FY19 Adjusted operating profit margin 38% 41%
13 Banking & Finance Underlying growth ■ Continued underlying revenue growth of 4% primarily due to a strong performance in IMN Events Revenue ■ H1 2018 Adjusted results include the SFIG event , which reached the end of its contract 2018 7% 4% ■ New target operating model consolidating brand structure into three brands; Global Capital, Euromoney and IMN, supported by operational H1 FY18 H1 FY19 pillar delivering logistics and production efficiencies Operating profit ■ Adjusted operating profit down 1% due to this investment 9% (1%) H1 FY18 H1 FY19 Adjusted operating profit margin 20% 15%
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