Half Year Results

Euromoney Institutional Investor PLC

Half Year Results

19 May 2022

Strong revenue and profit growth

Positive short and medium-term outlook

Euromoney Institutional Investor PLC ("Euromoney" or "The Group"), the global B2B information-services provider, announces half year results for the six months to 31 March 2022.

Andrew Rashbass, CEO, said:

"Our strong first half performance provides clear evidence that we are moving at pace to being a fast-growing, high-margin, 3.0, information-services subscription business.

"Fastmarkets and Financial & Professional Services subscriptions grew strongly driven by increasing demand for our actionable data, analysis and intelligence. Within Asset Management we have met our target early of stabilising our Investment Research business. Demand for in-person events strengthened across the first half and bookings for the rest of the year are encouraging.

"We have entered the second half with confidence. While we are mindful of the macro and geopolitical landscape, our specialist businesses are performing well and we expect results for the full year to be ahead of the Board's previous expectations. Our confidence in our business supports a new medium-term outlook, targeting strong growth and a mid to high-twenties operating margin by 2025."

Results presentation

A results presentation and Q&A will be hosted today, at 9.30am (UK time), for analysts and investors at the offices of FTI Consulting, 200 Aldersgate, London EC1A 4HD. A live audio webcast of the presentation and Q&A will also be available via the Investors section of our website at www.euromoneyplc.com, and subsequently available on demand.

We will be hosting a Teach-in for investors and analysts on Asset Management on 30 June 2022.

Our trading update for the nine months ended 30 June 2022 will be announced on 21 July 2022.

For further information, please contact:

Euromoney Institutional Investor PLC

Wendy Pallot, Chief Financial Officer: +44 (0)20 7779 8866; [email protected]

Christian Cowley, Investor Relations: +44 (0)7408 863420; [email protected]

FTI Consulting

Jamie Ricketts / Tom Blundell / Lucy Highland: +44 20 3727 1000; [email protected] 

NOTE TO EDITORS

Euromoney Institutional Investor PLC ("Euromoney") is a global B2B information-services business. We provide actionable data, analysis, intelligence and access through three divisions in markets where information and convening market participants are valued. Euromoney is listed on the London Stock Exchange and is a member of the FTSE 250 share index. (www.euromoneyplc.com)

Group summary

The Group delivered a strong performance during the half driven by growth in both subscriptions and events revenue. We are moving at pace to being a fast-growing, high margin, 3.0 information-services subscription business. 

Euromoney is a majority-subscriptions business. 69% of Group revenue during the half was generated from subscriptions which grew by 8% underlying and 12% on a reported basis. Underlying subscriptions revenue growth in Fastmarkets and FPS was 17% and 5% respectively. Asset Management subscriptions grew by 1% and we have met our stabilisation target early for the non-vote investment research BoB3. Across the Group, our subscriptions continue to achieve high renewal rates.

Events revenue, which accounted for 23% of Group revenue grew by 59% underlying and 65% on a reported basis. The return of in-person events led to a significant improvement in revenue performance in H1 2022 with total events revenue of £42.4m, an increase of £16.6m on H1 2021 when events were all virtual.

Overall, Group revenue increased by 14% underlying and 19% on a reported basis. Adjusted operating profit increased by 15% on an underlying basis with Group adjusted operating margin unchanged at 22%, or up 1 percentage point excluding the one-off £2.5m insurance claim receipt in H1 2021. Adjusted pre-tax profit increased by 16%. After the completion of the acquisition of Boardroom Insiders and the final dividend payment, net cash at 31 March 2022 was £12.5m (31 March 2021: £24.8m).

Revenue and adjusted operating profit 

* -17% reported and -19% underlying excluding £2.5m insurance credit in H1 2021

‡ +1ppt excluding £2.5m insurance credit in H1 2021

Outlook for FY 2022

We have entered the second half of FY 2022 with confidence. Demand for price reporting and essential market intelligence remains strong. In Asset Management we have stabilised the performance of our Investment Research business. The Group BoB3, which is a key leading indicator for our subscriptions revenue, improved to 8.1% at 31 March 2022 (31 March 2021: 3.5%).

In events we are planning to host more in-person events in H2 than H1 and we are encouraged by booking patterns. As a result, we expect strong revenue growth in events for FY 2022.

We expect the combination of operating leverage on strong revenue growth and cost efficiencies, including the benefits from reducing our office footprint (c.£2.5m in FY 2022) to deliver results for FY 2022 that are ahead of the Board's previous expectations.

FY 2025 goals

Reflecting our increased confidence in the delivery of the 3.0 strategy we have set out our financial framework to FY 2025. During this period we expect to deliver a powerful combination of strong growth in subscriptions and events revenue as well as realising group-wide efficiencies.

By division we expect:

As a result we expect the Group to achieve a high single to double-digit revenue CAGR from FY 2022 to 2025 and a significant improvement in adjusted operating profit margin to the mid to high twenties by FY 2025. A summary of expectations is detailed in the following table and further commentary by division is provided in the operating and financial review.

Summary of financial expectations

Other guidance

Strategy update

We help our customers compete successfully by providing clarity in opaque markets. We provide actionable data, analysis, intelligence and access to markets covering commodities, telecoms, financial and professional services, and asset management. Our 3.0 strategy is to provide information services embedded in customers' critical workflow. These are characterised by resilient and robust recurring subscriptions revenue. We have a record of successful organic investment and of acquiring good 3.0 businesses where our ownership adds significant value. Our ESG focus areas are also integral to our strategy and we are progressively embedding them across the Group. We deliver our strategy through three divisions and we use our group scale to share capabilities and platforms across our divisions to increase efficiency and enable our divisions to focus on customers. The strength of our business model and our subscriptions business has been demonstrated by our strong subscription performance during the pandemic. Our goal is to be a fast-growing, high margin, 3.0 information-services subscription business.

The Group has five short-term strategic priorities to enable the delivery of the 3.0 strategy:

1) Organic investment in 3.0 opportunities

2) 3.0 acquisitions

3) Return Investment Research to growth

4) Strong post-covid blended events, moving towards a 3.0 membership model

5) Standardise platforms, processes and policies for an efficient, inclusive, and diverse company

The following section provides updates on each of our five priorities:

1) Organic investment in 3.0 opportunities

Fastmarkets has a leading position in pricing data for raw materials in renewable-energy markets. During the half we continued our expansion of coverage in battery raw material markets with a particular focus on use in electric vehicles (EV) and energy storage systems. Fastmarkets is also partnering with the Singapore Exchange (SGX), the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME) to launch four battery raw material futures contracts which will be settled against Fastmarkets' prices. The suite of contracts will include cobalt metal, cobalt hydroxide, lithium carbonate and lithium hydroxide. These derivative contracts will facilitate market participants to manage price risk exposures to commodities crucial to the battery and electric vehicle EV industries. In FY 2022 we continue to audit more of our prices for compliance with the IOSCO Principles for price reporting agencies (51 prices at 31 March 2022 versus 43 at 30 September 2021). The Fastmarkets BoB3 improved to 14.8% growth at 31 March 2022 (31 March 2021: 8.2%).

FPS continues to invest to drive growth in subscriptions. Areas of investment include people (eg market specialists and sales and marketing), technology (eg rollout of a single publishing platform) and new products (eg content delivery via API and data visualisation tools). We continue to drive efficiency and scale across the division and delivered an improvement in the FPS BoB3 which grew by 8.7% at 31 March 2022 (31 March 2021: 4.2%).

Asset Management's investment in sales and systems has continued to drive improved retention in our research business with the 12-month moving average renewal rate at 31 March 2022 increasing to 91% (31 March 2021: 89%). During the half we started our investment in access and intelligence solutions for the Wealth Management industry including research, networking, education, communications support and model portfolios (Investment Solutions). The total Asset Management BoB3 decline improved to -0.3% at 31 March 2022 (31 March 2021: -2.1%).

2) 3.0 acquisitions

Acquisitions are a core part of the Group's strategy. We further strengthened our People Intelligence business with the acquisition of Boardroom Insiders in January 2022 for $25m. Boardroom Insiders is a market-leading provider of people intelligence to technology companies and professional services. The business has profiles on over 30,000 executives and key decision makers. These profiles, and the intelligence provided from its proprietary analytics capability, are primarily used by sales teams for business development and account management purposes. In May 2022 we launched a rebrand of our People Intelligence business under the single brand Altrata. Euromoney's People Intelligence BoB3 at 31 March 2022 was £48m, approximately half of FPS's total BoB3, and grew by 12% year on year.

3) Return Investment Research to growth

The turnaround of our Investment Research business has been achieved earlier than planned. In June 2020 we set a target of growing the non-vote Investment Research Book of Business by the end of FY 2022. At 31 March it increased by 0.6% and has been growing since December 2021. The turnaround has been driven by a higher renewal rate following investment in the sales team and in auto-renewals, integration of sales teams to drive cross-selling and new research products. Investment Solutions, which embeds our data and intellectual property into investment decision making processes, has also contributed to the turnaround and continued its rapid growth of assets under advisement (AUA) reaching $2.1bn at 31 March 2022 (31 March 2021: $1.6bn).

4) Strong post-covid blended events, moving towards a 3.0 membership model

The continuing need for industries to convene, network and transact in-person has driven very strong year-on-year growth in events revenue in H1 2022. The performance of our blended events versus their pre-pandemic equivalent strengthened across the period as covid-related restrictions were lifted. During the half we hosted 96 blended events and 26 virtual events versus an all-virtual comparison of 206 events in H1 2021. Geographically our events are focused on North America (approximately half) and Europe (approximately one third) which are both areas with high vaccination rates and relatively fewer travel restrictions. During the half we have seen an improvement in booking trends and are encouraged by the outlook for events in H2.

At Institutional Investor (II) our events membership model, in which members pay an annual fee to participate in a number of events and receive other access and intelligence opportunities, has proved relatively resilient during the pandemic. H1 2022 Institutional Investor membership revenue was two thirds of H1 2019. As in-person events have returned we have seen II memberships growing again which we expect to be reflected in future revenue growth.

5) Standardise platforms for an efficient, inclusive, and diverse company

We continue to use the Group's scale to support our businesses and drive efficiency by rolling out standardised platforms. During the first half, we extended our coverage of strategic cloud-based solutions for finance, customer relationship management and events management. We completed the migration of our corporate data centres to a strategic public cloud partner. This means our corporate hosting is now carbon neutral and significantly more cost effective. We completed the roll out of an AI-based advanced threat protection system to mitigate the risk of cyber-attacks, such as phishing and ransomware, monitored continuously by our security operations centre.

Our ESG focus areas

In FY 2021 we identified five ESG focus areas that are important to us and are integral to our strategy. We continue to embed our ESG framework across the business. We have defined relevant KPIs and are tracking our progress.

1) Workforce inclusion, diversity and well-being: The value we create for customers comes from the work our people do every day. We need to employ the best talent, and we recognise that talent is to be found in all demographics. However, it is not enough just to have the right people - we want them to achieve their full potential and thrive at Euromoney. To do this, they need to feel they belong; to be motivated, engaged and empowered; and have their physical and mental well-being needs supported. Since October 2021 we have successfully introduced Working 3.0 which allows every colleague to choose where they work and, secondly, the ability to start their weekend at Friday lunchtime. This extra flexibility has received strong support from colleagues and means our recruitment talent pool in an increasingly challenging labour market is not limited by geography. Working 3.0 has also enabled us to rationalise our office footprint and we expect to realise a sustainable reduction in property costs.

2) Data and information security and privacy: Proprietary data, analysis, news and insights are the foundation of our customer offer. For this information to be valuable it must be accurate, useful, and legal. Among other guarantors of quality, we therefore need to deliver the highest standards of information security and privacy. As we also hold information on our customers and our sector communities, we need to be trusted to safeguard this data securely and use it responsibly. During the half we have strengthened our framework for the responsible use of personal data in a way that is lawful, fair, ethical and accountable. This has focused on developing and maintaining a clear understanding of our processing activities; strong leadership and oversight; effective training and awareness and effective use of our privacy expertise. 

3) Transparency, ethics, governance, and risk management: We facilitate efficient markets by providing data and insights. We also believe in the contribution business makes to society. Efficient markets and fulfilling societal responsibilities also require that market participants operate with transparency, adopt ethical practices, establish strong governance frameworks and manage risk robustly. During H1 2022 we launched our Code of Business Conduct and held a series of awareness briefings for colleagues.

4) Encouraging strong ESG practices in the markets we serve: As well as the actions we take internally, we believe that we are well placed to shape good ESG practices in the markets we serve through raising the profile of ESG matters such as inclusion and diversity and climate change, and by expanding our footprint in ESG-related areas. In December 2021 Euromoney became a signatory of the Net Zero Carbon Events Pledge which was launched at COP26 in Glasgow. In Fastmarkets we continue to promote our environmentally friendly prices (eg scrap and secondary prices and energy transition products).

5) Reducing our climate impact: We are not a high-carbon emitting organisation, but we recognise the need to play our part and reduce both our climate and other environmental impacts. We aim to be leaders in running environmentally sustainable events through appropriate sourcing and waste reduction and by lowering the carbon footprint per attendee. We continue to look for ways to reduce energy use in our offices and our equipment. During FY 2021 we reviewed and improved the robustness of our Scope 1 and 2 emissions data. We have now achieved our target of carbon-neutral status for our FY 2021 Scope 1 and Scope 2 emissions by purchasing high-quality offsets and continue to work on the Group's strategy to Net Zero for Scopes 1, 2 and 3.

Operating and financial review

When reviewing performance, the Board considers a number of adjusted performance measures, as set out on pages 12 to 20.

The Group operates through three divisions: Fastmarkets, Financial & Professional Services (FPS) and Asset Management.

Fastmarkets: 26% of Group revenue

Fastmarkets is Euromoney's price reporting agency. It provides commodity price benchmarks and analysis critical to our customers' business processes and workflows. Fastmarkets provides prices across the supply chain from the source of the commodity to recycling in the metals, mining, forest products and agriculture markets. Its business model benefits from high barriers to entry and it operates in markets with significant opportunity for long-term growth.

Fastmarkets revenue increased by 21% underlying driven by a very strong performance in subscriptions. On a reported basis revenue increased by 20%.

Subscriptions revenue, which is 91% of divisional revenue, grew by 17% on an underlying and reported basis driven largely by growth in Metals and Mining and Forest Products. The subscription BoB3 increased by 14.8% year-on-year at 31 March 2022. This represents a strong improvement on the 8.2% year-on-year growth at 31 March 2021. This acceleration has been driven largely by a combination of increased sales of data licences and cross-selling of additional data sets to existing clients as well as sales to new customers.

Events revenue, which is 6% of divisional revenue, more than doubled on an underlying and reported basis, reflecting the return of in-person events. Other revenue, which is 3% of divisional revenue, increased by 4% underlying and 14% on a reported basis.

Adjusted operating profit increased by 37% underlying reflecting the very strong growth in high margin subscriptions revenue. On a reported basis adjusted operating profit increased by 30%.

Financial & Professional Services (FPS): 44% of Group revenue

FPS provides essential and actionable data, people and market intelligence, accreditation, marketing services, and events to financial and professional services businesses. FPS also delivers embedded workflow solutions and business development services. It combines a complementary portfolio of well-known industry brands that operate within four pillars: People Intelligence (Altrata), NextGen, Derivatives, and Events.

FPS revenue increased by 23% underlying driven by the return of in-person events and continued growth in subscriptions. On a reported basis revenue increased by 37% reflecting the impact of the acquisitions of Wealth Engine, RelSci and Boardroom Insiders.

Subscriptions revenue, which is 61% of divisional revenue, increased by 5% underlying benefiting from strong growth in People Intelligence and by 18% on a reported basis. Renewal rates for the division remained high during the period, demonstrating the essential nature of the data, specialist insight and solutions we provide. The subscription BoB3 increased by 8.7% year-on-year at 31 March 2022 and more than double the 4.2% year-on-year growth at 31 March 2021.

Events revenue, which is 31% of divisional revenue, grew by 144% underlying and 173% on a reported basis as in-person events returned. During the half FPS ran 56 blended events and 18 virtual events in comparison with 142 virtual events in H1 2021. In H1 2020 FPS hosted 118 in-person events. Major events during the period included Capacity Europe, Capacity Middle East, ABS East, Single Family Rental Investment (West), Build-to-Rent East and Metro Connect, all of which achieved higher revenues than their pre-pandemic equivalent.

Other revenue, which consists of research and rankings, advertising, consultancy and thought leadership, and is 8% of divisional revenue, decreased by 22% underlying and by 19% on a reported basis largely reflecting phasing of client projects, which is weighted towards H2 2022.

Adjusted operating profit increased by 80% on an underlying basis reflecting the return of in-person events and continued growth in high margin subscriptions. On a reported basis adjusted operating profit increased by 96%.

We further strengthened our People Intelligence business with the acquisition of Boardroom Insiders in January 2022. In May 2022 we announced that we are unifying our People Intelligence business under the Altrata brand.

Asset Management: 30% of Group Revenue

Asset Management includes our brands and businesses that serve the global asset management industry and broader financial community: BCA Research, Ned Davis Research (NDR) and Institutional Investor. This division provides independent research that enables our clients to make informed investment decisions, runs networks and conferences that bring asset allocators and asset managers together in an effective and efficient way and provides news and data that are critical for the industry to stay informed and make deals.

Asset Management revenue declined by 1% on an underlying and reported basis mainly reflecting the decline in events revenue.

Subscriptions revenue, which is 62% of divisional revenue, increased by 1% on an underlying and reported basis. This compares with a 5% underlying decline in H1 2021.

We have achieved our target early of returning the non-vote Investment Research subscription BoB3 to growth by the end of FY 2022. The turnaround was driven by a higher renewal rate following investment in the sales team and in auto-renewals, integration of sales teams to drive cross-selling, and new research products. The 12-month moving average renewal rate at 31 March 2022 increased to 91% (31 March 2021: 89%).

Investment Solutions, which embeds our data and intellectual property into investment decision making processes, has also contributed to the turnaround and continued its rapid growth of assets under advisement (AUA) reaching $2.1bn in 31 March 2022 (31 March 2021: $1.6bn).

Events revenue, which is 26% of divisional revenue, decreased by 5% on an underlying and reported basis. Institutional Investor (II) Membership revenue grew versus H2 2021 and we are planning to hold significantly more physical events in H2 2022 which we expect will drive growth in II Memberships and growth in other events.

Other revenue, which includes II research reports and media, and is 12% of divisional revenue, was unchanged underlying and declined by 2% on a reported basis.

Asset Management adjusted operating profit decreased by 9% on an underlying and reported basis reflecting investment in growth initiatives including the return of in-person events and Wealth Management.

Revenue, adjusted operating profit and adjusted profit before tax

* -17% reported and -19% underlying excluding £2.5m insurance credit in H1 2021

‡ +1ppt excluding £2.5m insurance credit in H1 2021

Group revenues increased by 14% underlying and 19% on a reported basis, reflecting the return of in-person events and continued growth in subscriptions revenue. Central costs increased by 44% underlying or 41% on a reported basis reflecting in part a one-off £2.5m insurance claim receipt in H1 2021. Excluding this insurance claim receipt central costs increased by 19% underlying and 17% reported largely reflecting investment in group-wide systems, higher travel costs, and higher insurance premiums. This resulted in adjusted operating profit underlying growth of 15% to £40.2m and 16% on a reported basis. Adjusted operating profit margin was unchanged at 22% or up 1 percentage point excluding the one-off £2.5m insurance claim receipt in H1 2021. Adjusted profit before tax increased by 16% to £38.6m mainly reflecting higher adjusted operating profit. Adjusted diluted earnings per share increased by 8% to 26.6p (H1 2021: 24.6p), lower than the growth in adjusted profit before tax, reflecting a temporary increase in the effective tax rate which is described in the tax section. Statutory profit before tax has reduced £7.8m to £7.6m (31 March 2021: £15.4m). This is principally driven by exceptional charges that have increased by £12.3m to £20.3m (31 March 2021: £8.0m) as a result of property rationalisation costs incurred in the first half and higher acquired intangible asset amortisation from the Group's recent acquisitions. This has been partially offset from the improvement in underlying performance as reflected in the adjusted results.

Other financial items

Exceptional items

In H1 2022 total exceptional costs were £20.3m. Following the successful introduction of flexible working across Euromoney, we have reviewed our real estate requirements across the Group and have identified significant opportunities to reduce our office costs in London and New York to reflect the footprint that suits our needs. As a result, exceptional impairments of £19.1m were booked against right of use assets and other fixed assets.

Other exceptional costs of £1.2m consist of expenditure associated with the acquisition of AgriCensus, WealthEngine, The Jacobsen, RelSci and Boardroom Insiders which is treated as exceptional due to its magnitude.

The cashflow impact of exceptional items for H1 2022 was an outflow of £1.7m.

Tax

The adjusted effective tax rate for the period ended 31 March 2022 is 25% (FY 2021: 20%) which is based on adjusted profit before tax and excludes deferred tax movements on intangible assets, tax on exceptional items, prior year items and other tax adjusting items as described below. The tax rate in each year depends mainly on the geographic mix of profits as well as on applicable tax rates and although the tax charge involves a level of estimate, we currently expect it to be c.23% for FY 2022. The adjusted effective tax rate is higher than the prior year (FY 2021: 20%) due to a non-recurring disallowance of interest expense for US tax purposes. This disallowance does not impact the Group's cash tax rate for the current period. For FY 2023 we expect the adjusted effective tax rate to be c.22% reflecting the increase in UK corporation tax rate from 19% to 25% from 1 April 2023. 

The Group's statutory effective tax rate is 40% for the period ended 31 March 2022. The statutory effective tax rate is largely driven by one off non-deductible expenses for tax purposes such as costs relating to M&A transactions, the non-recurring disallowance of interest expense noted above and general provisions relating to the Group's decision to vacate of some of its office spaces in London and New York.

The basis for the calculation of both effective tax rates and further information can be found in note 6.

Dividend

The Board has declared an interim dividend of 6.1p per share, a 7% increase year-on-year (H1 2021: 5.7p) reflecting the strong balance sheet, cash generative nature of the business and confidence in the future. Our dividend policy is to pay out approximately 40% of full year adjusted diluted earnings per share, subject to the capital needs of the business. The interim dividend is one third of the prior year's total dividend. The dividend will be paid on 24 June 2022 to shareholders on the register at the close of business on 27 May 2022.

Net cash and cash flow

A reconciliation of free cash flow, an alternative performance measure, and cash generated from operations and net cash flow, the nearest statutory measures, is set out below.

Net cash at 31 March 2022 was £12.5m which excludes lease liabilities, compared with £24.8m as at 31 March 2021. This decrease in net cash largely reflects the acquisition of Boardroom Insiders in January 2022 for £16.6m and the payment of Canadian withholding tax of £5.4m.

The Group's adjusted cash conversion for H1 2022 was 90% (H1 2021: 142%). We expect adjusted cash conversion to increase in H2 2022 as we collect cash from a higher number of subscriptions contracts that were signed in Q2 2022 than in the prior year as well as for events held at the end of Q2 2022. See page 19 for the calculation. The Group has a strong and consistent record of high cash conversion reflecting the robust nature of the Group's subscription businesses and the relatively capital light business model.

Management of balance sheet and liquidity risk and financing

The Group regularly reviews the level of cash and debt facilities required to fund its activities. In May 2021, the Group refinanced and increased its existing bank facility which included two additional one-year extension options. The first of these options was exercised in April 2022, resulting in a committed multi-currency revolving credit facility of £190m being available to the Group until May 2025. An additional £130m uncommitted accordion facility also remains available.

Currency

The Group generates approximately 75% of its revenue in US dollars, including approximately 40% of its UK revenue and c.90% of the Group's operating profit. The exposure to US dollar revenue in the UK businesses is partially hedged using forward contracts to sell US dollars, which delays the impact of movements in exchange rates for at least a year.

The average sterling-US dollar rate for the six months to 31 March 2022 was $1.35 (2021: $1.34). This reduced reported revenue growth rates for the year by approximately one percentage point and adjusted profit before tax by £0.8m. Each one cent movement in the US dollar rate has an impact on translated profits, net of UK revenue hedging, of approximately £0.8m on an annualised basis. The Group also translates its non-sterling denominated balance sheet items, which resulted in a gain in 2022 of £0.1m (2021: £0.1m loss).

Definitions

Adjusted measures exclude the impact of amortisation of acquired intangible assets, exceptional items and other adjusting items in accordance with the Group's policy. A detailed reconciliation of the Group's adjusted and underlying results is set out in the Appendix on pages 12 to 20 of this statement.

Underlying measures are the adjusted results stated at constant exchange rates, including pro forma prior year comparatives for acquisitions and new business launches and excluding disposals or business closures, including adjustments for significant event timing differences, and including proforma prior year adjustments for the application of new accounting standards.

CAUTIONARY STATEMENT

This Half Year Report ("Statement") is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this Statement save as would arise under English law. Statements contained in this Statement are based on the knowledge and information available to the Group's Directors at the 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 Company'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 Statement. 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 Statement. 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.

LEI Number: 213800PZU2RGHMHE2S67

Glossary to Half Year Report

In order to fully explain the performance of the business, the Group uses several alternative performance measures (APMs) and business KPIs. APMs are non-GAAP and not defined by IFRS; therefore, they may not be considered directly comparable to other companies' APMs. APMs should be considered in addition to, rather than a substitute for, IFRS measures.

The Group presents two main sets of APMs in its Annual Report and financial results: adjusted measures and underlying measures.

Adjusted measures

Adjustments principally include the amortisation of acquired intangible assets, exceptional items, net movements in deferred consideration and acquisition commitments, fair value remeasurements and the associated tax thereon.

Adjusted measures provide additional useful information for shareholders to evaluate and compare the performance of the business from period to period. Management use these for budgeting, planning and monthly reporting purposes and they are the basis on which executive management is incentivised. These adjusted measures also enable the Group to track more easily and consistently the underlying operational performance by separating out exceptional income, charges and non-cash items.

The Group also presents adjusted EBITDA because the Group's borrowing facilities contain certain EBITDA related covenants, including the ratio of adjusted net cash to EBITDA.

Underlying measures

Underlying measures are adjusted measures which have been additionally adjusted for the impact of foreign exchange movements, M&A, new business launches, business closures, material events that move across reporting dates, material biennial events and the application of new accounting standards.

Underlying measures provide a fairer like-for-like comparison than adjusted measures as the factors noted above can influence growth rates but do not reflect underlying business performance.

Reconciliation of Condensed Consolidated Income Statement to adjusted results for the six months ended 31 March 2022

The Directors believe that the adjusted measures provide additional useful information for shareholders to evaluate and compare the performance of the business from period to period. These measures are used by management for budgeting, planning and monthly reporting purposes and are the basis on which executive management is incentivised. The non-IFRS measures also enable the Group to track more easily and consistently the underlying operational performance by separating out the following types of exceptional income, charges and non-cash items.

Adjusted figures are presented before the impact of amortisation of acquired intangible assets (comprising trademarks and brands, databases and customer relationships); exceptional items; share of associates' and joint ventures' acquired intangibles amortisation and exceptional items; net movements in deferred consideration and acquisition commitments; fair value remeasurements; related tax items and other adjusting items described below.

The amortisation of acquired intangible assets is adjusted as the premium paid relative to the net assets on the balance sheet of the acquired business is classified as either goodwill or as an intangible asset arising on a business combination and is recognised on the Group's balance sheet. This differs to organically developed businesses where assets such as employee talent and customer relationships are not recognised on the balance sheet. Impairment and amortisation of intangible assets and goodwill arising on acquisitions are excluded from adjusted results as they are balance sheet items that relate to historical M&A activity.

Exceptional items are items of income or expense considered by the Directors as being significant, non-recurring and not attributable to underlying trading. It is Group policy to treat, as exceptional, significant earn-out payments required by IFRS to be recognised as a compensation cost. IFRS requires that earn-out payments to selling shareholders retained in the acquired business for a contractual time period are treated as a compensation cost. Given that these payments are part of the cost of an investment and will not recur once the earn-out payments have been made, they have been excluded from adjusted profit. The accounting policy for exceptional items can be found in note 1 to the Group's 2021 Annual Report.

Adjusted finance costs exclude interest arising on any uncertain tax provisions, as these provisions are not in the ordinary course of business and relate to tax adjusting items.

In respect of earnings, adjusted amounts reflect a tax rate that includes the current tax effect of goodwill and intangible assets. Many of the Group's acquisitions, particularly in the US, give rise to significant tax savings as the amortisation of goodwill and intangible assets on acquisition is deductible for tax purposes. The Group considers that the resulting adjusted effective tax rate is therefore more representative of its tax payable position. Tax on exceptional items is excluded as these items are adjusted in accordance with Group policy. Adjustments in respect of prior years are also removed from the adjusted tax expense as they do not relate to current year underlying trading.

Further analysis of the adjusting items is presented in notes 2, 4, 5, 6 and 10 to the Condensed Consolidated Interim Financial Statements.

The Group has applied these principles in calculating adjusted measures and it is the Group's intention to continue to apply these principles in the future.

The reconciliation below sets out the adjusted results of the Group and the related adjustments to the Condensed Consolidated Income Statement that the Directors consider necessary to provide useful and comparable information about the Group's adjusted trading performance.

The results for the six months to 31 March 2021 have been restated for IAS 38 IFRIC adjustments as detailed in note 1.

Underlying measures

When assessing the performance of our businesses, the Board considers the adjusted results. The year-on-year change in adjusted results may not, however, be a fair like-for-like comparison as there are a number of factors which can influence growth rates but which do not reflect underlying performance.

Underlying results include adjusted results and are stated:

The Group's adjusted and underlying measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with IFRS. The adjusted and underlying measures used by the Group are not necessarily comparable with those used by other companies.

The following table sets out the reconciliation from statutory to underlying for revenue, operating profit and profit before tax:

1 Adjustments methodology detailed on page 12.

The following tables reconcile the underlying revenue and adjusted operating profit changes for the divisions and the Group:

The following tables reconcile the underlying revenue changes for the divisions by revenue type:

Cash conversion

Cash conversion is an alternative performance measure of the quality of the Group's earnings. Cash conversion measures the percentage by which cash generated from operations covers adjusted operating profit.

1The results for the 12 months to 31 March 2021 have been restated for IAS 38 IFRIC adjustments as detailed in note 1.

Adjusted cash generated from operations is after adjusting for the cash impact relating to exceptional items and capital expenditure. For the period ended 31 March 2022, exceptional cash payments largely consist of integration and transaction costs of newly acquired businesses. For the period ended 31 March 2021 and year ended 30 September 2021, exceptional cash payments largely consist of integration and transaction costs of newly acquired businesses and to support the restructure and cost reduction programme announced in September 2020. At the half year, an adjusted 12-month cash conversion percentage is used to eliminate any seasonality.

Net cash is an alternative performance measure and comprises cash and cash equivalents along with the Group's borrowings excluding lease liabilities. The measure is important because the Group's RCF covenant includes the requirement to keep adjusted net debt below three times adjusted EBITDA. The following table sets out the cash movements in the year and reconciliation to adjusted net cash:

Net cash

1The results for the 12 months to 31 March 2021 have been restated for IAS 38 IFRIC adjustments as detailed in note 1.

The Group's borrowing facilities contain certain covenants, including the ratio of adjusted net debt to EBITDA. The inputs used in the covenant calculations, including the foreign exchange rates, are subject to adjustments as defined under the terms of the arrangement. The facility's covenants required the Group's net debt to be no more than three times adjusted EBITDA and required minimum levels of interest cover of three times on a rolling 12-month basis.

The bank covenant ratio uses an average exchange rate in the calculation of net debt and an annualised adjustment attributable to acquisitions and disposals in the calculation of adjusted EBITDA. When businesses are acquired after the beginning of the financial year, the calculation of adjusted EBITDA includes EBITDA attributable to the business as if the acquisition had been completed on the first day of the financial year. The calculation excludes the EBITDA of any businesses disposed of during the year.

The bank covenant ratio is adjusted to remove the impact of IFRS 16. This means that the adjusted EBITDA for covenant compliance calculations includes an entry for the rental expense which would have been recognised for the Group's leases had the transition to IFRS 16 not taken place. To be consistent with the bank covenant calculations, net cash is defined to exclude lease liabilities.

Principal risks and uncertainties

An overall increasing risk trend

The principal risks and uncertainties that affect the Group are described in detail on pages 51 to 60 of the 2021 Annual Report available at www.euromoneyplc.com. They are:

Although we still consider these to be the most relevant risks and uncertainties, the Board's view is that due to the global impacts of the war in Ukraine, the overall risk trend for the Group is increasing, both prior to and post-mitigation.

The war does not in itself create a stand-alone risk for the Group, but it does have an impact on some of the Group's existing principal risks, which has therefore resulted in three of the Group's risks moving on the risk matrix.

Risk 1 (Economic Recovery)

The Ukraine crisis and resulting sanctions are likely to slow the post-covid economic recovery. In particular, current and potential restrictions on Russian oil and gas imports have exacerbated the existing macroeconomic inflation risks, potentially increased the future costs of borrowing if interest rates rise significantly, and made travel more costly, which could impact travel to events. The result is a heightened risk of a global recession being endured over the next 18 months. The Group also decided in March 2022 to cease all business with Russia and Belarus for the time being, which will have a revenue and profit impact for the foreseeable future. This decision was taken to ensure the Group is compliant with very fast-moving sanctions requirements and is consistent with the actions that many other multinationals have taken.

Risk 4 (Geopolitical Risk)

The war in Ukraine has resulted in a large and co-ordinated global response, which in turn has influenced and changed various regional and international relationships, resulting in more geopolitical instability. In addition, there are numerous other potential geopolitical flash points around the world which are unrelated to the Russia-Ukraine war, but could escalate to cause further disruption to business and the wider economy.

Risk 5 (Cybersecurity)

Russia has targeted international companies and governments in Cyber-attacks in the past and it is understood that Russia has deployed such attacks again, specifically against countries and companies in countries that have strongly supported Ukraine, which would be most of the EU, the UK and the USA. These may take a number of forms including denial of service or ransomware attacks.

The Board continues to prioritise the management of risk

The Board is focused on taking the steps necessary to ensure the Group manages risk effectively, which includes a regular and robust assessment and management of the Group's risks.

It is likely that the increasing risk trend as a result of heightened geopolitical uncertainty could impact the Group's performance over the remaining six months of the financial year and dilute the benefits of the rolling back of covid-related restrictions around the globe.

An updated version of the Group's Risk matrix as found on page 50 of the 2021 Annual Report is set out in the below link to reflect the above changes in risk trends.

http://www.rns-pdf.londonstockexchange.com/rns/0243M_1-2022-5-18.pdf

Condensed Consolidated Income Statement

for the six months ended 31 March 2022

A detailed reconciliation of the Group's statutory results to the adjusted results is set out in the glossary to the Half Year Report on pages 12 to 20.

The 31 March 2021 Condensed Consolidated Income Statement has been restated for IAS 38 IFRIC adjustments as detailed in note 1.

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2022

The 31 March 2021 Condensed Consolidated Statement of Comprehensive Income has been restated for IAS 38 IFRIC adjustments as detailed in note 1.

Condensed Consolidated Statement of Financial Position

as at 31 March 2022