Euromoney Institutional Investor PLC

Euromoney Institutional Investor PLC 2008 Results Presentation Colin Jones, FD November 13, 2008

2008 RESULTS PRESENTATION • Financial Review • Trading Review • Strategy/Outlook 2

RECORD 2008 RESULTS 1As reconciled in appendix to Chairman’s statement 3

TRADING HIGHLIGHTS (1) • Against a background of: • Global credit crisis leading to… • …toughest conditions for financial markets for many years, and… • …recession fears esp in UK and US, and… • …most recently, loss of key customers, jobs and liquidity • Euromoney has achieved record results… • Demonstrating successful strategy to build a high quality, more diverse and more robust information group • Global economic concerns and credit crisis limited impact on results for year or Q4 • H2 performance closely mirrored that of H1 4

TRADING HIGHLIGHTS (2) • Strong growth from subscription and delegate revenues • But growth in advertising/sponsorship slowed as expected • Significant exposure to emerging markets (50%+) provides growth opportunities and counters dependence on global financial institutions • More diverse business post-Metal Bulletin - commodities, energy, legal and telecoms sectors offset weakness in finance • No dependence on one customer: none > 1% revenue • Adjusted operating margin still close to 25% • Tight cost control • Continued investment in marketing and new products (£2m+) 5

CASH FLOW / NET DEBT 2008 £99.8m £28.6m £12.2m £21.7m £4.7m £204.6m £172.0m FY 07 Acquisition/ disposals Dividend Tax Other (Interest, Capex, FX) Operating Cash Flow FY 08 6

FINANCING • New 5 year multi-currency facility with DMGT approved by board • Facility reduced from £300m to £250m due to strong cash flows and financial position • Interest margin to increase by c120bps (+£2m in 2009) • Strong covenants: • Debt:EBITDA 2.2x vs 2.8 (limit 4x) • Interest cover >6x • No significant acquisitions expected in next 12 months • Earn-out payments in 2009 £14.4m • Scrip dividend alternative • FX timing 7

NET FINANCE COSTS see note 4 8

TAX see note 5 9

REVENUE BY TYPE 11

REVENUE GROWTH BY QTR * Before closed / sold businesses 12

REVENUE BY DIVISION 13

OPERATING PROFIT BY DIVISION 14

OPERATING PROFIT: H1 VS H2 15

OPERATING MARGIN BY DIVISION 16

STRATEGY OVERVIEW • Strategy designed to build a more focused, more robust and higher quality information business • (1) Maintain margin: • Operational gearing vs cost flexibility • Rigorous focus on cost control and maintaining product margins • (2) Drive organic growth: • Invest in high growth subscription products esp electronic delivery • Focus on quality over quantity – build existing brands • Flexibility to roll out successes quickly to new geographies/markets • (3) Selective acquisitions to accelerate strategy • Results prove strategy is working well and is equally appropriate for tough times to come 18

REVENUE MIX 2003 Other 2008 6% Advertising Other Delegates Advertising 3% 21% 36% Delegates 20% 26% 8% 29% Sponsorship 14% 37% Sponsorship Subscriptions Subscriptions 19

MANAGING COSTS / MARGIN • Closely examining all costs • No easy wins eg loss-making businesses, low margin product • Hiring freeze since summer • Also looking at more outsourcing possibilities • Continue to invest in marketing, edit quality and new product esp online initiatives • Some price inflation esp in emerging markets • Operational gearing is not as high as perceived 20

OPERATIONAL GEARING • Gross margin reasonably consistent over last 5 years • Direct costs: approx 2/3rds directly variable with revenues eg commissions, marketing, events and significant use of freelancers / contractors • Remaining 1/3rd semi-variable depending on volumes eg print % circulation • Employee costs consistently c36% of revenues – c2/3rds are variable because of incentive culture • Overheads (mainly space) fixed but only 6% of revenues 21

2009 KEY DRIVERS • New debt facility – increase in funding costs c£2m • Yen financing structure exhausted - c£3m • CAP cost reduced from £5m to £3m (less if no vesting and CAP 2 delayed) • Conservative hedging strategy means FX benefit of £-$ weakness delayed until 2010 • No significant timing differences. • No significant acquisition/disposal impact 22

2009 OUTLOOK (1) • Q1 visibility broadly positive • Good October numbers • 2008 subscription sales give strong revenue momentum into 2009 • But…Q1 is smallest profit quarter of the year • Signs of sales weakness since start of October • Clearly huge uncertainty over outlook for 2009 including emerging markets… • …Compounded by customer budget cycle from Q2 • Very little Q2 visibility (as usual at this time) 23

2009 OUTLOOK (2) • Strategy will sustain business through difficult markets: • Good, diverse balance of revenue streams, geographies and sectors • Limited exposure to individual financial clients • Focus on tight cost control • Strong brands • …well positioned to weather the storm 24

Euromoney Institutional Investor PLC