Interim Results

EMBARGOED - NOT FOR RELEASE UNTIL 7am on 17/5/12

May 17 2012

EUROMONEY INSTITUTIONAL INVESTOR PLC

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS TO MARCH 31 2012

·; Revenues up 13% to £189.4m

·; Subscriptions 53% of group revenues

·; Adjusted profit before tax up 17% to £48.6m

·; Adjusted operating margin unchanged at 30%

·; Emerging markets continue to drive growth

·; Net debt reduced by £30m, now less than 1x EBITDA

·; Interim dividend increased by 12% to 7p a share

·; Successful integration of NDR and Global Grain acquisitions

·; Third quarter trading in line with board's expectations

Commenting on the first half results, chairman Padraic Fallon said:

"The company delivered strong organic growth, as well as the benefits of acquisitions. Research and data revenue growth of 33% highlights the group's progress to an online information business.

"The outlook for financial markets still looks tough, particularly in the Eurozone. In contrast, sentiment in US markets is improving, and emerging markets remain in reasonable health as measures to control inflation in key markets such as China appear to be working. Overall trading remains in line with the board's expectations."

Highlights

Euromoney Institutional Investor PLC, the international publishing, events and electronic information group, achieved an adjusted profit before tax of £48.6m for the six months to March 31 2012, against £41.6m for the same period in 2011. Adjusted diluted earnings a share increased by 16% to 29.7p (2011: 25.7p) and the board has approved a 12% increase in the interim dividend to 7p (2011: 6.25p) a share to be paid to shareholders on July 19 2012.

Total revenues for the period increased by 13% to £189.4m. Underlying revenues, excluding acquisitions, increased by 5%. Headline subscription revenues increased by 22% and accounted for 53% (2011: 49%) of the group's revenues for the period. Underlying subscription revenues increased by 7%, continuing the good growth momentum from 2011.

The adjusted operating margin was unchanged at 30%. Costs, particularly headcount, have been tightly controlled. At the same time, the group has continued to invest in technology and new products as part of its online growth strategy.

Net debt at March 31 was £88.5m compared with £119.2m at year end. The reduction in net debt largely reflects the continued strong operating cash flows of the group. The only significant capital outflow in the period was £5.7m for the acquisition of the Global Grain event business in February. Net debt has fallen to less than one times EBITDA, leaving plenty of headroom for the group to pursue its selective acquisition strategy.

The outlook for financial markets remains challenging. The continuing uncertainty over the future of the Eurozone, along with increasing political instability in the region, is holding back growth and causing European financial institutions to implement tough cost measures. In contrast, sentiment for US markets is improving, and emerging markets remain in reasonable health as measures to control inflation in key markets such as China appear to be working.

Strategy

The group's strategy remains the building of a robust and tightly focused global online information business with an emphasis on emerging markets. This strategy is being executed through increasing the proportion of revenues derived from subscription products; using technology efficiently to assist the online migration of the group's print products as well as developing new electronic information services; investing in products of the highest quality; eliminating products with a low margin or too high a dependence on advertising; maintaining tight cost control at all times; retaining and fostering an entrepreneurial culture; and using a healthy balance sheet and strong cash flows to fund selective acquisitions.

Driving revenue growth from existing as well as new products is a key part of the group's strategy. Since 2010, the group has been investing heavily in technology and content delivery platforms, particularly for the mobile user, and in new digital products as part of its transition to an online information business. The level of investment has continued at a similar rate to last year with nearly £5m (2011: £4m) expensed on technology and new products. Steady investment alongside the tight control of other costs underpins the group's strategy for managing its margins.

Acquisitions remain a key part of our strategy and in February the group completed the purchase of Global Grain for £5.7m. Global Grain Geneva is the world's leading event for international grain traders, run in November each year. The group has a successful record of building fast growing global event businesses, with Coaltrans Conferences and Metal Bulletin Events being two striking examples. The plan is to do the same with Global Grain and an event for the Asia-Pacific region was launched successfully in March.

Meanwhile Ned Davis Research (NDR), acquired for £68m in August 2011, has been integrated successfully with the rest of the group including the restructuring of the sales teams and consolidation of the back office functions ahead of time. The focus now is on driving the revenue growth of NDR through an expanded sales team and building a range of new international research products. With its strong cash flows and net debt below one times EBITDA, the group has significant funding capacity for further acquisitions.

Trading Review

Total revenues for the period increased by 13% to £189.4m. Underlying revenues, excluding the impact of last year's acquisition of NDR, increased by 5%. Although the group derives a significant proportion of its revenues in foreign currencies, movements in exchange rates had no material impact on underlying revenues in this period.

Headline subscription revenues increased by 22%, and accounted for 53% (2011: 49%) of the group's revenues for the period. Underlying subscription revenues, excluding NDR, increased by 7%, continuing the good momentum from 2011. Once again, the subscription growth has been driven largely by the group's electronic information services such as BCA Research and CEIC Data.

The performance of advertising and sponsorship revenues reflects the continuing uncertainty and volatility in financial markets, with global financial institutions exerting tighter controls over headcount and marketing costs. Pressure on these revenue streams was first felt in the final quarter of financial year 2011 and has continued, although the improvement in advertising revenues at the end of the second quarter reversed the negative trend.

The stronger performance of delegate revenues in the second quarter was mostly due to timing differences on events and the impact of the political unrest in the Middle East on delegate bookings last year: the underlying increase in delegate revenues in this period was 6% against 10% in the first quarter.

The adjusted operating margin was unchanged at 30%. Costs have been tightly controlled and permanent headcount increased by just three to 2,114 people in the first half. At the same time, the group has continued to invest in technology and new products at a similar level to year as part of its online growth strategy.

Business Review

Financial Publishing: revenues fell by 7% to £36.5m and adjusted operating profits by 12% to £10.9m. Both revenues and margins have felt the impact of reductions in advertising spend, particularly among the global financial institutions, although advertising from emerging markets has held up well for titles such as Euromoney. At the same time, the businesses have continued to invest in their migration to a digital publishing model.

Business Publishing: the group's activities in non-financial sectors of the market, particularly commodities, energy and legal, have proved more robust, partly because they are less dependent on print advertising. Revenues increased by 6% to £27.5m with Metal Bulletin the strongest performer. Adjusted operating profits were unchanged at £9.3m reflecting the further investment in digital publishing.

Training: revenues fell by 4% to £15.1m and adjusted operating profits by 22% to £2.9m. Training has the largest exposure of the group's divisions to emerging markets, and most of the businesses have held up well with underlying growth from markets such as the Middle East which suffered during the last year's political unrest. The sharp fall in margins was attributable to the completion at the end of last year of a long-term training contract in Asia.

Conferences and Seminars: the event businesses have continued to be a key driver of the group's growth, with revenues up 22% to £46.7m and adjusted operating profits up 30% to £15.8m. Signs of tighter budgets for event sponsorship were first seen last summer, and sponsorship revenues for the period were flat. The growth has come from delegate-driven events, both in finance including the European Airfinance Conference and IMN's ABS East Conference as well as from some of the group's largest events in areas outside finance including the Coaltrans World Coal Conference and Metal Bulletin's International Ferro-Alloys Conference. Timing differences on events in the second quarter also contributed to the revenue growth, including a couple of biennial events run this year and other events brought forward from April to March. The underlying increase in event revenues was approximately 10%.

Research and Data: revenues are predominantly derived from subscriptions and increased by 33% to £65.8m. Underlying growth excluding NDR was 8%. The main driver of growth in this division is BCA, the independent macroeconomic research house, which has continued to maintain a high renewal rate reflecting the strong customer loyalty to its products. Good growth has also come from CEIC, the emerging market data provider, and the capital market databases run as a joint venture with Dealogic. Last year saw significant investment in BCA and CEIC to drive future growth, and although that investment continues, the lower levels of spend have helped the adjusted operating margin for the division improve to 43%. Adjusted operating profits including the contribution from NDR were £28.3m, meaning research and data activities now account for half the group's adjusted operating profits, against only 12% in 2006.

Financial Review

The adjusted profit before tax of £48.6m compares to a statutory profit before tax of £39.8m. The statutory profit before tax is usually lower than the adjusted profit before tax because of the impact of acquired intangible amortisation. A detailed reconciliation of the group's adjusted and statutory results is set out in the appendix to this statement.

Adjusted net finance costs for the group's committed borrowing facility fell by £0.3m to £3.3m. The average cost of funds for the period was 4.6% (2011: 5.6%). Headline net finance costs of £3.8m (2011: £5.3m) include a £0.5m charge for imputed interest on acquisition option commitment values.

The adjusted effective tax rate for the first half was 24%, against 26% for the same period in 2011. The adjusted effective tax rate for the full year is expected to be 23%. The tax rate in each period depends mainly on the geographic mix of profits and continues to benefit from reductions in UK and Canadian corporate tax rates.

The group continues to generate nearly two thirds of its revenues, including approximately 30% of its UK revenues, and more than half of its operating profits in US dollars. The average sterling-US dollar rate for the six months to March 31 was $1.58 (2011: $1.59) and therefore the impact of exchange rate movements on headline revenues and on the translation of overseas profits was not significant. The average US dollar rate in the second half of financial year 2011 was $1.63.

Net Debt, Cash Flow and Dividend

Net debt at March 31 was £88.5m compared with £119.2m at year end. The only significant capital outflow in the period was the £5.7m payment for the acquisition of the Global Grain event businesses. Operating cash flows in the first half are traditionally less than in the second due to the payment for annual profit shares which is normally made in December. Cash generated from operations was £49.4m (2011: £51.9m) and the operating cash conversion rate was 87% (2011: 104%). The stronger cash generation and conversion numbers in financial year 2011 were due to the timing of cash payments for profit shares in that year.

The group's debt is provided through a $300m (£189m) multi-currency committed facility from Daily Mail and General Trust plc (DMGT), the group's parent, which expires in December 2013. In the absence of any significant acquisitions, the group has no pressing requirement to arrange new finance before this facility expires. However, the group has agreed terms with DMGT that provide it with access to a new $300m facility for the period from January 2014 through April 2016 should it be required. The group manages its borrowings to a net debt to EBITDA limit of three times. The ratio at the end of March was 0.8 times against 1.0 times at year end.

The company's policy is to distribute a third of its after-tax earnings by way of dividends each year, with approximately one third of the total dividend paid as an interim. Pursuant to this policy, the board has approved a 12% increase in the interim dividend to 7p a share, to be paid on July 19 to shareholders on the register on May 25. A scrip dividend alternative will again be offered to shareholders for the interim dividend. However, recent acceptance levels for the scrip dividend alternative have been lower than expected and the board does not expect to offer the scrip alternative with future dividends.

Capital Appreciation Plan (CAP)

The CAP is the group's long-term incentive scheme designed to retain and reward those who drive profit growth and is an integral part of the group's successful growth and investment strategy.

The £100m CAP profit target, defined as adjusted profit before tax and before CAP expense, was achieved in financial year 2011, two years earlier than expected. However, individual CAP awards will be based on profits for financial year 2012 and the first tranche of CAP awards will therefore not vest until February 2013. The second tranche of CAP awards will only vest if the revised CAP profit target of £105m, which was increased following the acquisition of NDR, is achieved in financial year 2012 or later. Awards under the CAP will be satisfied by the issue of approximately 3.5 million new ordinary shares and £15m cash, in two roughly equal tranches.

The earlier than expected achievement of the CAP profit target triggered an additional accelerated CAP expense of £6.6m in financial year 2011, with a corresponding reduction in the expected CAP expense for financial years 2012, 2013 and 2014 of £1.1m, £3.8m and £1.7m respectively. The board excluded this additional accelerated CAP expense from the adjusted diluted earnings a share figure used for setting the 2011 dividend, and intends to apply the same treatment to the reduction in CAP expense for setting future dividends.

The long-term incentive expense for the period to March 31 was £5.0m (2011: £4.7m). The expected expense for the second half is only £2.0m. The first half weighting of the expense reflects the accelerated vesting for accounting purposes under IFRS 2 after the CAP profit target was achieved earlier than expected.

Outlook

The outlook for financial markets remains challenging. The continuing uncertainty over the future of the Eurozone, along with increasing political instability in the region, is holding back growth and causing European financial institutions to implement tough cost measures. In contrast, sentiment for US markets is improving, and emerging markets remain in reasonable health as measures to control inflation in key markets such as China appear to be working.

Underlying revenues in April (after adjusting for timing differences) increased by 6% compared to a year ago. Recent sales trends suggest the outlook for advertising and sponsorship revenues remains challenging but forward revenue visibility for the group's events businesses, for which the third quarter is the most important, is encouraging. The rate of growth in subscription revenues is expected to fall in the second half, albeit only gradually, as growth comparisons become tougher. Overall trading remains in line with the board's expectations.

The group has a successful and sustainable strategy and will continue to invest in technology and new digital publishing models as it drives its transition to a global online information business, at the same time as managing its margins and using its strong cash flows to pursue further acquisitions.

Padraic Fallon

Chairman

May 16 2012

END

For further information, please contact:

Euromoney Institutional Investor PLC

Padraic Fallon, Chairman: +44 20 7779 8556; [email protected]

Richard Ensor, Managing Director: +44 20 7779 8845; [email protected]

Colin Jones, Finance Director: +44 20 7779 8845; [email protected]

FTI Consulting

Charles Palmer: +44 20 7269 7180; [email protected]

CAUTIONARY STATEMENT

This Interim Financial Report (IFR) has been prepared solely to provide additional information to shareholders to assess the Euromoney group's results and strategy and the potential for that strategy to succeed. The IFR should not be relied on by any other party for any other purpose.

The IFR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

NOTE TO EDITORS

Euromoney Institutional Investor PLC (www.euromoneyplc.com) is listed on the London Stock Exchange and a member of the FTSE-250 share index. It is a leading international business-to-business media group focused primarily on the international finance, metals and commodities sectors. It publishes more than 70 titles in both print and on-line format including Euromoney, Institutional Investor and Metal Bulletin, and is a leading provider of electronic research and data under the BCA Research, Ned Davis Research and ISI Emerging Markets brands. It also runs an extensive portfolio of conferences, seminars and training courses for financial markets. The group's main offices are in London, New York, Montreal and Hong Kong and more than a third of its revenues are derived from emerging markets.

Reconciliation of Condensed Consolidated Income Statement to adjusted results for the six months ended March 31 2012

The reconciliation below sets out the adjusted results of the group and the related adjustments to the statutory Income Statement that the directors consider necessary in order to provide an indication of the adjusted trading performance.

Adjusted figures are presented before the impact of amortisation of acquired intangible assets (comprising brands, trademarks, databases and customer relationships) and goodwill impairment, additional accelerated long-term incentive expense, restructuring and other exceptional operating costs, movements in deferred consideration, and non-cash movements on acquisition option commitment values. In respect of earnings, adjusted amounts reflect a tax rate that includes the current tax effect of the amortisation of goodwill and intangible assets.

Further analysis of the adjusting items is presented in notes 4, 5, 6 and 8 to the Condensed Consolidated Interim Financial Report.

Condensed Consolidated Income Statement

for the six months ended March 31 2012

A detailed reconciliation of the group's statutory results to the adjusted results is set out in the appendix to the Chairman's Statement on page 8.

Condensed Consolidated Statement of Comprehensive Income

for the six months ended March 31 2012

Condensed Consolidated Statement of Financial Position

as at March 31 2012

A reconciliation of net debt is set out in the note to the Condensed Consolidated Statement of Cash Flows on page 14.

Condensed Consolidated Statement of Changes in Equity

for the six months ended March 31 2012