euromoney’s strategy - euromoney institutional investor plc - full... · strategy. 6 print...
TRANSCRIPT
2
Certain statements in this presentation may be forward looking. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward looking statements. These risks, uncertainties or assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Any forward looking statements contained in this presentation regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. You should not place undue reliance on forward looking statements, which apply only as of the date of this presentation.
This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares in the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares of the Company.
Past performance cannot be relied upon as a guide to future performance.
3
Agenda
1. Euromoney strategy
2. Case Studies
• Price Reporting Agency
• Telecoms
• Project and Asset Financing
3. Conclusion
5
Our strategy is…
“to manage a portfolio of businesses in markets where information, data and convening market participants are valued. We deliver products and services that support our clients’ critical activities.
In particular, we look to serve markets which are semi-opaque; that is, where there is information which organisations need in order to operate effectively but the information is hard to find. Price discovery is a good example.”
Strategy
6
Monologue
Advertising-centric
Product-centric
B2B Information 1.0
Digital
Dialogue
Subscriptions
Customer-centric
B2B Information 2.0
Embedded in workflow
Part of the industry structure
Licensing revenues based on customer outcomes
Solution-centric
B2B Information 3.0
We aim to anticipate our markets’ development
Structure
+-
Successful B2B information companies will be 3.0 businesses
7
0
50
100
150
200
250
300
350
201120102009 20132012 2014 20152008 2017 20182016
Market cycles impact the segments that we serve
Commodity indexEquity index Bank shares index
Cycle
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
2,600
20062002199819941990 201820142010
60
80
100
120
140
160
180
200
220
240
19951991 20152011200720031999 2018
Source: S&P 500 index from Bloomberg, Bloomberg Commodity index from Bloomberg, S&P Bank index from Bloomberg
Equities Commodities Banking and financial institutions
Source: S&P 500 index Source: Bloomberg Commodity index Source: S&P Bank index
8
We map Euromoney’s businesses along two dimensions
We service fundamentally cyclical markets
Cycle
Structure
The business models of B2B information companies develop through three generations (B2B 1.0, 2.0 and 3.0)
Plotting our businesses along these axes guides capital allocation and defines strategic priorities
Quadrants
9
B2B Information 3.0
B2B Information 1.0
Challenged market Strong market tail winds
+-
-
+
3
1
4
2
Cycle Stru
ctu
re
The quadrants guide investment decisions, capital allocation and define strategic priorities
Prepare for the upturn Invest
Use the time wiselyDisinvest
• Protect and enhance market position• Invest for when the cycle turns• Acquire• Tighten cost control• Fix any operational deficit
• Invest modestly to move to top-right• Maximise short-term profit and cash• Fix any operational deficit• Consider divestment
• Maximise short-term profit and cash• Divest• Prevent future build-up
• Develop new products• Invest in sales and marketing• Acquire• Fix any operational deficit• Accelerate transition to 3.0
QuadrantsBased on market cycle and business model structure we categorise the businesses in our portfolio into the quadrants
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We group the actions in the quadrants into three pillars of strategic activity
Opportunity depends on market characteristics
Product development and implementing our operating model
Recycling capital
Prepare for the upturn
Invest3 4
1 2Disinvest
Use the time wisely
Prepare for the upturn
Invest3 4
1 2Disinvest
Use the time wisely
Prepare for the upturn
Invest3 4
1 2Disinvest
Use the time wisely
3.0 business model
Invest around big themes Transform the operating model Actively manage the portfolio
Must-have not nice-to-have
Acquisition
Disposal
Create once, sell many
Best-of-both worlds
Disruption
Semi-opaque market
Inefficiency
Challenged business models
Barriers to entry
eg Price discovery and telecomseg Function/divisional structure, data and tools eg RISI, BroadGroup, Layer123 and Fleet
database
11
Price ReportingSpecialist
Information
Our portfolio of businesses are split into four segments composed of seven divisions supported by our central functions
Euromoney Institutional Investor PLC
Banking & Finance
Global Market Intelligence
Investment Research
Institutional Investor
Asset Management Banking & Finance Price, data & market intelligenceCommodity
events
Commodities
Tele
com
s
Events
Segments
Corporate Development
Finance
HR
IT
Marketing
Legal, Risk and Programmes
Fin
ance
Legal Media Group
Project and Asset Financing
Insurance
Derivatives
FunctionsDivisions
12
We have chosen three businesses to highlight the big themes and implementation of our strategy
Segment DivisionBig theme
Price, data & market intelligence
Price Reporting
Events
Specialist Information
Brands
Price discovery
1
Telecoms
2
Price discovery 3
Counterparty risk
Asset management
15
Price ReportingSpecialist
Information
Price reporting for semi-opaque commodity markets is an example of price discovery – one of our big themes
Euromoney Institutional Investor PLC
Banking & Finance
Global Market Intelligence
Investment Research
Institutional Investor
Asset Management Banking & Finance Price, data & market intelligenceCommodity
events
Events
Segments
Corporate Development
Finance
HR
IT
Marketing
Legal, Risk and Programmes
FunctionsDivisions
16
Overview - Price Reporting Agency
How a PRA fits Euromoney’s strategy
Why a PRA is attractive
Euromoney’s PRA strategy
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PRAs report the market price of commodities
Reference price Physical benchmark Financial benchmark
Market structureIlliquid, opaque and
undeveloped PRA marketIncreasingly sophisticated
marketLiquid markets
Compliance requirements
No compliance requirements, specifications or methodology
Transparent methodology, internally validated
Rigorous process externally audited and IOSCO compliant
Customer use-case
Markets use price for trends and analysis
Industry accepts a PRA’s price as the standard for physical
contracts
Transactions using exchange contracts based on PRA’s price
Market
Definitions: Physical price – This is the price used in contracts by suppliers, producers and manufacturersPhysical premium –This is a price for a material with defined specifications taking into account location, purity and delivery requirements among others (eg. Shanghai, copper premium, Grade A, cathode, cif)
19
PRAs are attractive with strong financials and high barriers to entry
• PRA skillsets, expertise, technology and assets are
relevant to multiple markets
Scalable infrastructure
D
A B
C
• Price data is critical to a customers’ workflow
making subscription and licence revenues resilient
• Low marginal cost of sales and data delivery to
additional clients
• Price reporting serves customers across the value
chain of large markets
Strong fundamentals
Serving customer needs is at the heart of the PRA industry
I need to understand my costs
I need trustworthy price information
I need real-time access to prices
I need to hedge my transactions
My pricing needs will change
PRA customer needs:
• In order for participants to interact they need a price
they can trust
• Markets need independent price assessments to
provide transparent pricing in an opaque market
At the core of their marketsC
B
• Price benchmarks are embedded within the supply
chain
• Data is used for contracts so reputation is a
prerequisite in the market
• Financial market adoption increases regulatory
requirements and the cost of compliance
High barriers to entryA
D
Market
20
PRAs – Barriers to entryPrice Reporting Agencies are critical to workflow which creates high barriers to entry
• Price reporting is a complex role with no formalised third-party training available; price reporters must develop expertise while working at a PRA
• It requires significant investment to build a sustainable price-reporting team eg Metal Bulletin has over 100 people involved in metals pricingPeople
• A PRA needs to be trusted by the industry it serves. Industry participants have to be willing to share information with the PRA
• PRAs need to demonstrate credibility and integrity over many years to ensure confidence in their data and encourage price adoptionReputation
• Technology investment is required to provide systems that ensure transparency in the price discovery processes and editorial workflowsTechnology
• The use of prices in financial markets increases regulatory requirements (e.g. IOSCO) and the cost of complianceRegulation
Workflow • Prices are part of client workflow supporting activities from trading to procurement
Supply chain • Prices, once established as benchmarks, are used across the supply chain
Market
21
PRAs – At the core of their marketsPrice benchmarks are used by financial markets. Where oil has led, other markets follow
Shift in revenue mix towards exchange royalties provides PRA businesses with strong growth prospects
Exchange royalties
Subscriptions
Licencing fees
Market maturity
PRArevenues
Metals
Oil & GasPetrochemicals
Source: Internal business market estimates (not to scale)
Forestry Products
Price Reporting market development (Illustrative)
Market
23
Euromoney’s PRA business addresses each of the strategic pillars
Invest around big themes Transform the operating model Actively manage the portfolio
Price discovery
Fit for Euromoney
Transform into a 3.0 business –from a news organisation into a
PRA
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It took 100 years to get from B2B 1.0 to 2.0 but only five years to go from 2.0 to 3.0
B2B 1.0 business • Print• Monologue• Advertising
B2B 2.0 business • Digital• Dialogue• Subscriptions
B2B 3.0 business • Embedded in contracts and workflow• Benchmark for the industry• Licencing
Quinn’s Metal Market Letter launched
1913 1999
MB launches first website
2003AMM converts daily print
paper to digital service
CME launch a futures contract referencing MB prices
2012PRA strategy launched with
new operating and sales model
2015
IOSCO Type 1 compliance achieved
Sep 2017
Euromoney purchases MB
2006
We bought Metal Bulletin during its transition to a 2.0 business and accelerated its development to 3.0
Euromoney’s PRA case study
Fit for Euromoney
25
The price reporting industry is fragmented
Source: The Price Reporters – Owain Johnson Notes: 1. The list of examples are non-exhaustive and are not necessarily those that are potential acquisition targets, they are a long list of price reporting agencies from the sector2. These businesses are already one of the Euromoney PRA businesses
Agriwatch Energy Data Hub MySteel RML AgTech
American Metals Market2 EnergyTrend Natural Gas Intelligence S&P Global Platts
Argus Media Esoko Net Energy SCI Group
Asian Metal F. O. Licht Novus Agro Scrap Price Bulletin (Iron Age)2
Baltic Exchange FastMarkets2 OMR Ship & Bunker
New Energy Finance Fenwei Energy The Packer Shorcan
Bunker Index Fertecon PetroChem Wire SteelCN
Bunkerspot FOEX2 Petrosil SteelHome
C1 Energy Genscape Plasticker SteelKey
CCF Group IHS Chemical (CMAI) Plastics Information Europe Sugaronline
Chemical Data (CDI) IHS McCloskey Point Carbon SunSirs Commodity Data Group
ChemOrbis IHS OPIS PolymerMIS Tankard
ChinaTSI ICIS PolymerTrack Tecnon OrbiChem
CoalinQ Indian Petro Group Polymerupdate The Tex Report
coalSPOT Industrial Minerals2 PRC Steel TradeTech
CRU Kortes Prima Markets TZMI
CusteelLondon Energy Brokers
AssociationProfercy Umetal
CW Group Madan24 PT CoalIndo Energy USP/ESALQ
DTN Marine Bunker Exchange Public Ledger UX Consulting
e-coal.com Metal Bulletin2 PV Insights Xinhua InfoLink
e-petrol.pl MetalMiner RIM Intelligence ZH818
Enerdata myCEPPI RISI2 Many more…
With over a hundred PRAs1
(many not available for acquisition)Sector examples
15 focused on Agriculture
19 focused on Metals
8 focused on Plastics
8 focused on Coal
Fit for Euromoney
27
Response to customer needs:
Our strategy is to be a world-leading PRA
A world-leading PRA
Shift from news to PRA organisation
Increase the reach of price reporting
and our prices
Motivated and high-calibre team aligned on PRA vision
Established brand with reliable and trusted reputation built through strong client and exchange relationships
We provide must-have data and tools
We report using a rigorous process with IOSCO assurance
We develop benchmarksWe deliver real-time access
to dataWe facilitate market
development
Capabilities
Strategy
28
The shift to a PRA involves cultural and process change
NewsOrganisation
Price reporting agency
Different content focusNews focus Pricing and analytics focus
Employee role definition and perceptionJournalists Price reporters
InfrastructureComplex and inefficient process Robust, auditable and efficient process
External perceptionSeen as a news organisation Seen as a Price Reporting Agency
Change required
Shift to PRA
Sales methodologySubscription sales Data licencing
ArchitectureMonolithic architecture Scalable microservice architecture
ComplianceInternal reporting methodologyStandardised and IOSCO-compliant
methodology
29
We align initiatives to customer priorities to serve our customers better Response to customer needs
Customer Needs Initiatives
• We have invested in data delivery and tools (eg APIs, exchange-data products, excel plug-ins and data tools)I need to understand my
costs
• We have invested in our process and methodology to create clarity and transparency• We follow IOSCO principles and have had our robust pricing controls and systems audited
I need trustworthy price information
• Our platform provides near real-time access to exchange prices as well as our physical prices• We have an expert technology team delivering high levels of availability
I need real-time access to prices
• Our price-development team works with customers to understand their developing needs provide solutionsMy pricing needs will
change
• We have developed trusted prices that are embedded in trading contracts, bilateral hedging contracts and exchange-traded contracts thereby helping customers manage risk
I need to hedge my transactions
Response
We provide must-have data and tools
We employ rigorous processes with
IOSCO assurance
We deliver real-time access to data
We facilitate market development
We develop benchmarks
Definitions: Physical price – This is the price used in contracts by suppliers, producers and manufacturersPhysical premium –This is a price for a material with defined specifications taking into account location, purity and delivery requirements among others (eg. Shanghai, copper premium, Grade A, cathode, cif)
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IronOre
Aluminium premiums
Steel Ferrous ScrapCopper
Concentrates
Metallurgical Coal
Alumina
Val
ue
of
Dat
a Sa
les.
Lic
en
sin
g &
Exc
han
ge F
ees
Reference Pricing Benchmarks Exchange Contracts
All other MB Reference
Prices
Market maturity
Subscription Revenues
Exchange Fees
Data Licencing Revenues
Container board
We facilitate the development of our markets towards the use of our benchmarks
Wood productsPulp
Develop markets
31
We are developing strong capabilities across seven areas Capabilities
Scalable technology
Market engagement
People
Content distribution
Compliant price gathering
Licence selling
Integrate acquisitions
Capabilities
32
Capabilities – Scalable technology Scalable systems enable us to be flexible, nimble and responsive
Scalable technology
Near real-time processing Live data availability Distribution of near real-time exchange pricing
Auditable Compliance Use of our prices as financial benchmarks
Cloud-based hosting
Flexible
Reduced costs
High availability
Variable processing power when required
Efficient
Description
Microservice architecture
Scalable
Easier integration of future acquisitions
Use of plug-in data sources to serve more markets easily
Easy integration of new analysis tools
New-product development
Introduction of new channelsFlexible delivery
Characteristics Benefits
Enables
33
Metal Bulletin Shanghai copper premium case study
Capability – Market engagement around pricesA case study
Agenda setting
Metal Bulletin published an article exposing warehousing fraud relating to a stock pile that did not exist. Assets worth $300 million had been pledged multiple times to raise finance.
Exchange traded prices
Exchanges have launched derivative contracts which are settled using Metal Bulletin’s copper prices. These allow users in the market to hedge against price movements.
Guiding industry development
Metal Bulletin’s investigative journalism highlighted fraud in the industry. We went from reporting the story to creating a price and created the physical and financial benchmarks.1. We developed a new price to restore market
confidence 2. Our price became the industry benchmark3. This price is now being used in physical and financial
contracts
News
Benchmark Prices
Release of Metal Bulletin’s Qingdao warehouse receipts
investigative story
Exchanges launch derivative
contracts using MB’s price
MB relaunched the Shanghai copper premium Independent price reporting
Metal Bulletin relaunched the Shanghai copper price. The industry, including major copper producers, started using this daily physical price in their contracts.
Market engagement around prices
1
23
1
23
Definitions: Physical price – This is the price used in contracts by suppliers, producers and manufacturersPhysical premium –This is a price for a material with defined specifications taking into account location, purity and delivery requirements among others (eg. Shanghai, copper premium, Grade A, cathode, cif)
34
Previous siloed structure
Capability – PeopleOur strong management team allows us to scale and realise synergies
Metal Bulletin CEO
MetalBulletinGeneral Manager
Industrial MineralsGeneral Manager
American Metal Market
General Manager
MetalBulletinResearch
General Manager
Editorial
Sales
Marketing
Editorial
Sales
Marketing
Editorial
Sales
Marketing
Editorial
Sales
Marketing
• Siloes created barriers to growth
• Sub-brands operated inefficiently
• Each brand operated like a subsidiary
• Matrix structure accelerates strategy
• Global teams maximise efficiency and sharing of best practice
• Communication enhanced
PRA CEO
Metal BulletinMetals
Minerals
Forestry
New markets
Head of marketing
Head of editorial
Head of salesHead of product
People
Target structure
35
Capability – Content distributionNew channels embed our data into client workflows
Content distribution
Delivery channel Initiatives
• To enable convenient access to our data and prices we are releasing API delivery that can be embedded into workflow tools and other day-to-day toolsAPI
• The dashboard will show our data in an intuitive, interactive and immersive way enabling customers to gain deep market insights not previously possible with eg PDF contentDashboard
• Our mobile platform gives customers easy access to our data and tailors the experience to the channelMobile
Excel plug-ins• Our data is used in client modelling and decision making. To facilitate this process we are developing an
Excel plug-in that will enable our clients to make better use of our data
36
Capability – Price gatheringOur technology is auditable, transparent and among the most robust in the industry
The Industry submits transaction and contract
prices
Price reporters gather price information
Price reporters enter source data
Price reporter considers appropriate
price and rationale
Supervisors validate or return to price
reporter
1 2 3 4 5
Compliant price gathering
Benchmarks
We publish the price benchmark
6
3 4
5
Internal & external
audit
1 2 6
IOSCO compliant methodology and systems
37
Capability – Licence sellingWe are moving to selling licenses rather than just subscriptions
Licence selling
Pricing and products• Restructure our products and pricing• Base pricing on value rather than volume of information provided
Sales process• Communicate our transition into a PRA and our move to data licensing • Base sales process on client use-case• Align resellers distribution model
Account Management• Engage with customers to understand and promote use of our data• We appointed global account directors
Technology system • Develop new CRM systems to consolidate client information and requirements from across the organisation• Create new delivery platform to provide data tools, data feeds and to integrate into client workflow
Administration• Communicate revised contract terms and highlight acceptable use of our data• Monitor compliant use of our data through technology
38
Cross selling: Share all potential cross sales leads between respective sales teams
Capabilities – Integrate acquisitionsWe effectively integrate acquisitions to create synergies and enter new markets
Management: Integrate into the PRA divisional organisation structure
0Days 30 60 100
MigrateControl & Stabilise Integrate & DevelopPrepare
Continuity Transition Synergies
Commercial review: Validate new product plans; implement PRA data licencing approach; and align with PRA division processes and policies
Synergies: Roll-out PRA infrastructure to new acquisitions including compliance processes and use of price-collation systems
Technology: Mitigate any risks and align core systems, processes and security protocols
Change management: Develop internal and external communication programmes; proactively manage change and all migration activities
Integrate acquisitions
Standard integration timeline and focus
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We are growing strongly and plan to continue to accelerate this growth through acquisition
201720162015
Forestry
Metals
Operating margin
29%
Notes: 1. Numbers are for the PRA division and also include Metal Bulletin events and RISI events. 2. Proforma shows the full years revenues
Euromoney’s Price Reporting Agency1
Forestry Pro-forma2
Revenue
£57m
41
Our strategy is…
“to facilitate industry collaboration and trading across the telecoms ecosystem.”
Strategy
42
Price ReportingSpecialist
Information
Euromoney's telecoms business is a facilitator of the industry
Euromoney Institutional Investor PLC
Banking & Finance
Global Market Intelligence
Investment Research
Institutional Investor
Asset Management Banking & Finance Price, data & market intelligenceCommodity
events
Commodities
Tele
com
s
Events
Segments
Corporate Development
Finance
HR
IT
Marketing
Legal, Risk and Programmes
Fin
ance
FunctionsDivisions
44
Technology vendors
Infrastructure Carriers Devices Platforms Services
Components
Chipsets
Network equipment
Infrastructure management
Components
Chipsets
Wholesale
Retail
Smartphone / Tablet
Wearable / Smart device
Consumer
Enterprise
Multiple verticals
Manufacture the components for hardware across the value
chain, e.g. SIM cards, processors, chipsets
Build/manage network infrastructure (towers,
cables, switches, routers) and servers network
software
Own/operate fixed and wireless networks providing
data access and communications services
Manufacture connected devices for consumer and
enterprise use
Link devices to service providers and enable app and
other software service
End-user, use-case specific services, often vertical-
specific providers
Current Focus
MarketEuromoney's telecoms business predominantly serves wholesale telecoms carriers and ecosystem
45
Telecoms carriers face industry challenges
Business disruption
• Limited growth because of saturation of carriers and strong competition• Risk of commoditisation as value migrates to software• Innovation is required to update the service portfolio for future growth
1
Squeezed margins
2
• Increased competition from internet carriers with lower overheads • Decreases in prices driven by competition• Prices are being forced down but investment required for growth (eg 5G)
New capabilities required by
industry
3
• Reallocate resources from pure capacity trading towards growth areas• Develop software capabilities to compete effectively• Partner across the value chain to sustain growth
The industry recognises the importance of collaboration and convening to transact
Market
47
Euromoney's telecoms business addresses each of the strategic pillars Fit for Euromoney
Invest around big themes Transform the operating model Actively manage the portfolio
TelecomsTransition from training to deal
making and new product development
48
Euromoney's telecoms business is developing into a 3.0 business by facilitating deals
B2B 1.0 business • Print• Standalone events• Monologue
B2B 2.0 business • Digital• Industry leading events• Dialogue
B2B 3.0 business • Embedded in deals and meetings• Industry forum and infrastructure• Facilitation
Capacityfounded
2000 2008
ITW trading event launched
2010
ITW uses external software to support delegate meetings
Euromoney purchases TelCap
2005
Fit for Euromoney
9 Standalone events
2005
Capacity magazinelaunched
2000
Capacity launches in-housemeeting app (MeetMe)
2014 2015
Global Leadership Forum established, bringing together
global leaders in telecoms
2017
BroadGroup, Layer123 and TowerXchange acquisitions
Euromoney’s telecoms business
50
We will enter new segments of the value chain and serve more customer needs through our ‘T’ strategy
Value chain expansion
The capabilities we have developed from serving network carriers create a platform to serve other segments. We are expanding into new segments organically and through acquisition
We are expanding to facilitate industry collaboration and trading across the telecoms ecosystem
We are creating new products and services to meet more needs within each segment
Serving more client needs
Focus Strategy Description
Strategy
BroadGroup and Layer123
Global Leaders Forum (GLF) and MeetMe
Examples
51
Technology vendors
Infrastructure Carriers Devices Platforms Services
We are increasing the depth and breath of our service by expanding value chain focus and serving other customer needs
Served by TelcapInternational transit
Data centre and cloud
Infrastructure
Technology
We will expand along the telecoms value chain and increase the depth of our coverage
ExpansionFunctions in the value chain
Value chain
Strategy
Served by Broad Group
Served by Telcap
Served Layer123
Served by Broad Group Served by Telcap Served by Layer123New technology
Served by TowerXchange
52
Example of vertical expansion: the Global Leadership Forum (GLF) convenes telecoms leaders
GLF activities Strategic benefit to TelCap
• Market engagement– allows on-going engagement with carriers
• Ecosystem engagement – ability to engage at higher level with thewhole telecoms value chain
• Market intelligence – understanding key executive topics
• Support market evolution– GLF working-group activities andthought-leadership
An industry visionAligned view of the industry aspiration and direction
Shared priorities
Collective activities
Thought Leadership
Participating companies
Strategy
53
Example of expansion: acquiring BroadGroup enabled us to expand into the attractive datacentre and cloud function across the value chain
Strategy
Key productsValue chain segments
Functions served
Market characteristics
Sector value is
increasing
Technology vendors
Data centre and cloud
New players are
entering the data centre market
Platforms Complex market
requires interaction
and business
information
Services
Carriers
DataCloud World Congress and regions
Events
Finance investment Forum (FiF) London
Dark fiber convention
Cloud Law
New products
Reports
Data center local reports
Power Market and Pricing
Colocation Markets Quarterly
ConsultingBespoke consulting projects (eg CDD and market segment analysis)
Product type
54
2015 20172016
We are growing strongly and plan to accelerate this growth through future acquisitions
Euromoney's telecoms business
Current event
BroadGroup, Layer123 and New events
Notes:1. Proforma shows the full years revenues
BroadGroup, Layer123 and New events pro-forma1
Revenue
56
Our strategy is…
“to provide the information that financial investors need in order to include real assets in their portfolios, and to facilitate access to capital in the industries we cover.”
Strategy
57
Price ReportingSpecialist
Information
Our portfolio of businesses are split into four segments composed of seven divisions supported by our central functions
Euromoney Institutional Investor PLC
Banking & Finance
Global Market Intelligence
Investment Research
Institutional Investor
Asset Management Banking & Finance Price, data & market intelligenceCommodity
events
Events
Segments
Corporate Development
Finance
HR
IT
Marketing
Legal, Risk and Programmes
Legal Media Group
Project and Asset Financing
Insurance
Derivatives
FunctionsDivisions
58
Project and Asset Financing overview
How Project and Asset Financing fits into
Euromoney’s strategy
Why Project and Asset Financing is
attractive
Euromoney’s Project and Asset Financing strategy
59
For financial investors to use real assets as a specialist asset class requires currently unavailable information
Market
Infrastructure and aviation are two growth areas where transparency and liquidity are required
Sources: Market Study: Investment in the aviation asset class 2016 survey of international institutional investors – KGAL
28% 25%17% 17%
17%
64% 81%
53%8%
8%47%
11%22%
Renewable energies
Increased investment
Real estate
3%
InfrastructureAircraft
No investment
Make further regular
Withdrawal some investment
Investor interest in real assets(asset managers’ responses)
Asset managers plan to increase investment in aircraft and infrastructure Infrastructure asset-class development
…funded through taxationFinanced by government as public works
…funded through customer revenuesFinanced by firms as capital expenditure
…funded through loansFinanced though loans (eg. Commercial banks)
…funded through financialisationFinanced through financial instruments in investor portfolios
Projects and assets…
Past
Present
Future
60
Price discovery
Counterparty risk
Asset management
Project and Asset Financing addresses each of the strategic pillars Fit for Euromoney
Fleet Database
Invest around big themes Transform the operating model Actively manage the portfolio
Development of news to data, analysis and tools
61
Investors need transparent valuations, data tools and increased liquidity to encourage investment and accelerate financialisation of real assets
Strategy
ImplementationCustomer needsCustomer Our response
Acquire Fleet Database to enable fleet and aircraft valuation
Acquire Infrastructure Journal to provide transaction and pricing data
Data-led analyticsTransparent valuations
All investors
Our bands
• Launch AirFleet database• Launch deal and transaction database• Create credit rankings• Develop fund news and data service
• Launch funds news and data service• Deepen investor and asset data
New product development
Data tools to enable decision
making
Financial investors
• Develop platform for origination of advisory, financing, leasing and M&A opportunities
• Develop new products for specific customer needs (eg refinancing)
Facilitating new capital investments
Increased liquidity to
support financialisation
The industries we cover
Status
Completed
Completed
Completed
In progress
In progress
Completed
62
IJ has shown the way and AirFinance Journal is following the same path: acquiring and building data capabilities and plan in the future to become a deal intermediary
2013 2014 2017 Future
Project and Asset Financing Strategy
2015 2016
We acquired a Fleet Database
B2B 3.0B2B 2.0B2B 1.0
Our news brand
B2B 3.0B2B 2.0B2B 1.0
IJ Global
We combined these businesses to create IJ Global which provides news, data and ratings
Our news, performance and event brand
We integrated the fleet and new deals databases so AFJ could provide holistic data, tools and analysis for the industry
1a
1b
2
1a
1b
2
We acquired data content
63
20172015 2016
We are growing strongly and plan to accelerate this growth through future acquisitions
Euromoney's project and asset financing business
IJ Global
AFJ
Revenue
65
Price ReportingSpecialist
Information
We have looked at three examples to illustrate the strategy…
Euromoney Institutional Investor PLC
Banking & Finance
Global Market Intelligence
Investment Research
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com
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ance
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…and we are implementing it across our portfolio