Euromoney: creating growth through digital innovation/media/Files/D/DMGT/investors/sep...DMGT Investor Briefing September 2014 © 2014 Euromoney Institutional Investor PLC –12-month

© 2014 Euromoney Institutional Investor PLCDMGT Investor Briefing September 2014

Euromoney: creating growth through digital innovation

Christopher Fordham

Managing Director

DMGT Investor Briefing September 2014


• Christopher Fordham, Managing Director

• Ben Jones, Chief Technology Officer

• Bashar AL-Rehany, CEO, BCA Research

• Simon McLoughlin, Managing Director, Institutional Investor Digital Products

• Q&A

Introductions



Improved quality of earnings / cash flow

Advertising 14%

Subscriptions51%

Sponsorship, 13%

Delegates, 19%

Other, 3%2013

Euromoney’s revenue by type

Advertising , 36%

Subscriptions, 29%

Sponsorship8%

Delegates, 21%

Other 6%

2003

2003 2013 CAGR

Revenue £m 158.9 404.7 10%

Adjusted PBT £m 21.3 116.5 19%

Digital as % of total revenue

10% 53%



• BCA Research and Global Capital launched on Delphi in spring 2014

• Every step guided by client research and user-groups

• Roll out Delphi across the company

• New Delphi products being launched

– Three new BCA products

– RMB (Global Capital)

– Other products in beta e.g. Co-Co Analytics, Capacity Intelligence, Insurance

• Delphi development so far: on time, on budget, high quality

– Capital investment in Delphi platform of £10m

– Annual cost including depreciation and running costs of c.£4m

– Further investment based on future business plans

Euromoney’s digital future


A SUSTAINABLE COMPETITIVE ADVANTAGE


• Increase the value of our content with enhanced personalisation and discoverability

• Facilitate the repurposing of existing content and data using semantic tagging, search and aggregation

• Increase speed to market for new products

• Enhance product value by embedding in customer workflows

• Generate cost and production efficiencies

Delphi: group-wide content platform


TRANSFORMATIONAL TECHNOLOGY INVESTMENT

© 2014 Euromoney Institutional Investor PLCDMGT Investor Briefing September 2014DMGT Investor Briefing September 20146

Transformational Technology Investment

Ben JonesChief Technology Officer


What is Delphi?

• Group-wide content platform providing:

– An intuitive authoring interface

– Greater editorial control

– Structuring the unstructured

– Automated semantic tagging

– Enhanced search

– Personalisation and alerting

– Mobile responsive

• A vehicle for change

Presentation

Authoring

Storage

Search Semantic



Semantic Web

Federal Reserve



– 12-month project live in Feb 2014

– Merged 3 existing products into 1

– New authoring and content management

– Responsive design

– Personalised email alerts with campaign tracking

– New channel added in 6 weeks

The Results– Editorial buy-in

– Overall site visits up by more than a third year-on-year

– Dwell time now averaging 10 mins

– Overall trials nearly tripled

– Mobile from zero to nearly a quarter of traffic

– New RMB channel already being upsold

GlobalCapital



Next Steps

1. All remaining publishing sites live on authoring component by end FY15

2. Replace proprietary search component across existing sites by end FY15

3. Product launches for:• Institutional Investor

• Euromoney

• Metal Bulletin

4. All products live on all components by end of FY16

5. Common linked data


Helping drive a digital-first, content and data-led strategy


Bashar AL-Rehany

CEO

BCA Research – A Digital Transformation

11


Snapshot

Established in 1949 and based in Montreal

BCA is the leading provider of global independent macroeconomic research and investment advice

Employs 150 staff globally

16 Managing Editors and 50 research analysts

17 Services/Products

Clients in 90 countries; 54% in the Americas, 36% in EMEA and 10% in Asia

66% of the revenue comes from subscribers who have been with BCA over 5 years

12


1949

The Beginning(Content)

The Transition(Client Relationships)

The Future(Innovation)

Hand-plotted charts Post reports

Faxed reports Desktop computers

Emailed reports Mobile Apps

CRM systems Online reports

Semantic content Digital products Interactive charts Intelligent search

The Journey

13


Innovation Phase

Emerging Markets Bonds Foreign Exchange Equities Frontier Markets

Equity Sectors Financials Technology Healthcare Energy

Stocks Trading Strategy

Content Products Digital Products

BCA Analytics interactive

charting

BCA Edge a content

dashboard

Interactive Websites

14


Utilising Delphi technology to unlock the value of BCA’s content

Deconstructing research with semantic searches Enhancing content with ease of discovery, consumption and intuitive user

interfaces Increasing interaction, collaboration and co-creation Creating new products from existing content Extracting value from long tail

Delphi impact on digital transformation

15


The traditional PDF is no longer the only method to deliver BCA content

BCA Edge - a content dashboard

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Powerful Semantic Tagging And Search

Reconstructing the content through semantic tagging according to Themes Views Trades Asset allocation recommendations Charts

Search Entire content of over 120,000 tagged research elements since 2008 Intelligent auto suggest Extensive semantic filters


17


Semantic Tagging and Search

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Personalised Views Visually identify BCA view on a market or economy Automatic and continuous view updates Clarity and transparency Always one step away from the research

View Evolution Visual representation of view analysis on markets and asset

classes Clear and easy illustration of historical changes over time Ability to export BCA views Ability to compare views on different markets and asset classes Immediate access to relevant reports

BCA Market Views And Themes

19



Personalised Views

The filtered BCA Views are available on one screen per individual client need

20


View Evolution

Each blue square represents a research report that discusses a specific view. Clients can review and open the report.


21


The All Investment Recommendations Page


22


The All Research Page


23


Semantic Search Graph

Visually understanding the connection between themes, views and markets

Unique way of navigating through the research content Quick and easy access to relevant content


24



Semantic Search Graph

25


BCA Analytics - interactive charting

Fully interactive and customisable Powerful set of functions Semantic discovery & search Daily data updates and maintaining relevance of the insights Designed to fit into client workflow

Interactive Charting

26


BCA Analytics - interactive charting

Interactive Charting

27


What does it all mean?

Achieving growth through Improving retention rates

Increasing new sales to new clients

Increasing revenue per client

Creating new products

Competitive advantage

New vertical opportunities

Consolidating our position as the sector leader

Client Feedback• “This is powerful; none of your competitors are doing this.”• “BCA has created something very special.”

28

© 2014 Euromoney Institutional Investor PLCDMGT Investor Briefing September 2014DMGT Investor Briefing September 2014

Simon McLoughlin

Managing Director

29


• An online network that brings together institutional investors and asset managers from around the world …

• …in two separate but linked digital communities that allow them to connect, share knowledge and put capital to work

Overview


Bringing together the world’s largest investors


Japan Investment Forum TOKYO

International Trader Forum BERLIN

Family Office Wealth ConferenceLAGUNA BEACH, CA.

India Investment Forum NEW YORK CITY

Alternative Investor Institute Consultant’s RoundtableCHICAGO

LatAm TraderForumRIO DE JANEIRO

UAE Global Investment ForumABU DHABI

Asia Institute CEO roundtableSINGAPORE

Sovereign Institute – Africa Funds Roundtable

CAPE TOWN

Saudi Arabia Institutional Investor Forum

RIYADH

UAE Global Investment Forum

LONDON

European Investment Roundtable

COPENHAGEN

Kuwait Investment Summit KUWAIT CITY

We see Asset Owners every year at 100 events in 23 countries

Access & Trust

Overview



• A private, online network connecting buyers, sellers and intermediaries in asset management……displacing some consultants and

placement agents in a $71 trillion market

• A technology business that gives investors sophisticated tools to deploy capital

• IIN launched in January 2011 with 48 funds

A digital disruptive technology

Overview



• 1,633 Institutions• CIOs/Senior Investors• 98 countries• $24.4 trillion assets• Av. AUM = $27 billion• Min. AUM = $1 billion

Investor Intelligence Network Manager Intelligence Network

Requests For Information (RFIs)A flow of mandates

• 744 Asset Managers

• Sales Heads

• 32 countries

• 2,216 users

• Min. AUM = $500 m

Online communities provide the foundation

Overview



A unique worldwide network of capital…

Investor Members

$7.1Trillion

$114Billion

$8.2Trillion

$9.0Trillion

606Institutions

783Institutions

49 Institutions

195Institutions


* Data accurate on 2nd September 2014.

34


… and the most senior, hard-to-reach Allocators

* Data accurate on 2nd September 2014.

69% CIOs or Heads of Portfolios, such as equities

2,516Investment

Officials

Investor Members


98Countries

>$1 bnMin Asset

Owner AUM

+$27 bnAverage

AUMof Each

Member

35


How usage has grown over the past year

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Usage

*Percentage of returning visitors who revisit the site within seven days of their previous visit

36


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Usage

25% of Asset Owners > $1bn use the platform monthly

*Percentage of returning visitors who revisit the site within seven days of their previous visit

36b


Saudi Arabian Fund$740 billion

US Public Fund$290 billion

More informed decisions through a wider array of data points

Share knowledge & collaborate privately…


Usage


…and allocate capital and co-invest

1. Public Securities (RFI Service)

2. Private Markets – Data & Subscription Rooms


Usage


Provides digital fingerprint of every Asset Owner, so we know who is interested in what, when...

… which means we can make targeted introductions to managers, vendors and third-party online services

Benefits of an online community approach…

Investor Members



Our vision: the leading digital platform

1. Capital introduction: helping investment managers and private market deal sponsors raise institutional capital worldwide. We will make the platform a regulated entity in order to charge bps.

2. Data products: harvesting peer data to turn into subscription products that we sell to Asset Managers and investors.

3. Platform fees: distributing a curated bench of high-value digital services to Asset Owners in return for tenancy fees and a share of revenues.

Create the leading digital platform connecting Asset Owners, Asset Managers and Intermediaries – an online ecosystem that helps institutional investors deploy capital effectively. We monetise by:

Strategy



A promising start: capital placed through RFI

* Data accurate on 2nd September 2014

Capital Introduction


$15.6 bnTotal value of

searches posted

2,326Proposals

sent over the Network

121Searches

$6.7 bnTotal value of

mandates awarded

41


We will charge on capital placed…

1. RFI: In funds of public securities, we may charge a percentage of the winning manager’s first-year fee. On a $500 million EME search, our fee would be a

substantial six-figure sum.

2. In private markets – PE, Real Estate etc – we will charge a certain number of bps on capital placed. Even on a ‘small’ $100 million private placement,

our fee would be a substantial six figure sum.




Why do Asset Owners use IIN’s RFI Service?

• Direct access to a global pool of manager talent especially boutiques not normally on consultant buy-lists

• Anonymity – only Country/Size/Fund Type disclosed

• Less hassle – answer questions via Blog, not hundreds of calls




RFI: How the Asset Owner creates an RFI…


• Notify all, or select managers.

• Set your investment criteria.

• Remain anonymous.

Digital form gives time and efficiency

gains…



What you see as a manager…Track your replies.

Told if mandate is exclusive to MIN.

RFI: What you see as a manager…


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Click here to ask the investor questions and get information to tailor your mandate.

… ask questions to refine your proposal




Asset Owners can compare proposals easily




What Investors Say About RFI



'You can tell the service was designed by pension funds. It solves the basic problem we all face: how do we handle manager searches efficiently, spending our resources as effectively as possible? The platform saved us a lot of time.’Fund Manager, Equities, Multi-Employer Pension Fund, The Netherlands

'Using Institutional Investor’s RFI Service was a great experience for us. It enhanced our manager selection process by uncovering relevant managers, including some interesting ones that were previously unknown to us.’Investment Manager, Multinational Telecommunications Company Pension Fund,UK

'The RFI Service was easy to use and helped our group quickly identify managers that met the criteria for our search.’Manager Selection Analyst, Corporate Pension Fund, United States


‘We use RFI to find managers for our hedge fund portfolio. The advantages of the RFI Service over our other origination processes are threefold:

1. We control the customisation of the mandate.2. Anonymity. 3. Interactive Q&A about the mandate.

The RFI tool acts as an effective filter that has led to a more targeted and effective origination process for us.’

Daniel MacDonaldPortfolio Manager, Alternative InvestmentsOntario Teachers' Pension Plan

One of the world’s most sophisticated Asset Owners…




Data products: the core of our freemium model

• Users can access basic platform for free

• Pay to access high-value datasets, such as FeeScan

• Pricing power...a 1 bps increase in fee on a $100 million mandate gives $10,000 a year in either savings (Asset Owners), or profits (Asset Managers)

• Sell to captive user group of circa 3,000 firms

Data Products



FeeScan: analysis of fee spread and value

Data Products



Preferred digital venue for Asset Managers

• The only digital venue that brings together CIOs from Asset Owners worldwide

• Well placed to become the preferred digital distribution channel for investment managers

• A highly scalable business with the potential for multiple product extensions

Summary



Euromoney’s digital strategy is progressing well

• Successful development and implementation of Delphi, a transformative new content platform

• Investor Intelligence Network is another exciting and innovative initiative for Euromoney

• Confident of long-term success through digital innovation



Q&A


Euromoney: creating growth through digital innovation/media/Files/D/DMGT/investors/sep...DMGT Investor Briefing September 2014 © 2014 Euromoney Institutional Investor PLC –12-month

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