Euromoney’s strategy - Euromoney Institutional Investor PLC - Full... · Strategy. 6 Print Monologue ... HR IT Marketing Legal, Risk and Programmes e Legal Media Group Project and

Three case studies of the strategy in action

Euromoney’s strategy

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

Euromoney strategy

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

Print

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


Invest3 4

1 2Disinvest

Use the time wisely


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

Case study 1:

Price Reporting Agency (PRA)

14

Our strategy is…

“to be a world-leading PRA”

Strategy

15


Information

Price reporting for semi-opaque commodity markets is an example of price discovery – one of our big themes


Banking & Finance


Investment Research



events

Events

Segments


Finance

HR

IT

Marketing


FunctionsDivisions

16

Overview - Price Reporting Agency

How a PRA fits Euromoney’s strategy

Why a PRA is attractive

Euromoney’s PRA strategy

17

Price Reporting Agency - Market

Why a PRA is attractive

18

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

22

Price Reporting Agency - Fit for Euromoney

How a PRA fits Euromoney’s strategy

23

Euromoney’s PRA business addresses each of the strategic pillars


Price discovery

Fit for Euromoney

Transform into a 3.0 business –from a news organisation into a

PRA

24

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

26

Price Reporting Agency - Strategy

Euromoney’s PRA strategy

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


30

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


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

39

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

Case study 2:

Telecoms

41

Our strategy is…

“to facilitate industry collaboration and trading across the telecoms ecosystem.”

Strategy

42


Information

Euromoney's telecoms business is a facilitator of the industry


Banking & Finance


Investment Research



events

Commodities

Tele

com

s

Events

Segments


Finance

HR

IT

Marketing


Fin

ance

FunctionsDivisions

43

Telecoms – Market

Why telecoms is attractive

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

46

Telecoms – Fit for Euromoney

How telecoms fits Euromoney’s strategy

47

Euromoney's telecoms business addresses each of the strategic pillars Fit for Euromoney


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

49

Telecoms – Strategy

Euromoney’s telecoms strategy

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

Case study 3:

Project and asset financing

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


Information

Our portfolio of businesses are split into four segments composed of seven divisions supported by our central functions


Banking & Finance


Investment Research



events

Events

Segments


Finance

HR

IT

Marketing


Legal Media Group


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


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

Conclusion

65


Information

We have looked at three examples to illustrate the strategy…


Banking & Finance


Investment Research



events

Commodities

Tele

com

Events

Segments


Finance

HR

IT

Marketing


Fin

ance

Legal Media Group


Insurance

Derivatives

FunctionsDivisions

…and we are implementing it across our portfolio

Documents

Euromoney’s strategy - Euromoney Institutional Investor PLC - Full... · Strategy. 6 Print Monologue ... HR IT Marketing Legal, Risk and Programmes e Legal Media Group Project and