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Euromoney Institutional Investor PLC. Analyst and Investor Seminar January 31, 2008. Group Overview. Colin Jones, Finance Director. Trading Update / IMS. Q1 revenue growth in line with board expectations Continued strong growth in subscription products and delegate revenues

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Euromoney institutional investor plc

Euromoney Institutional Investor PLC

Analyst and Investor Seminar

January 31, 2008


Group overview

Group Overview

Colin Jones,

Finance Director


Trading update ims
Trading Update / IMS

  • Q1 revenue growth in line with board expectations

  • Continued strong growth in subscription products and delegate revenues

  • Some signs of slowdown in advertising and sponsorship from global financial institutions esp in credit and structured products

  • Emerging markets remain in good shape

  • Current trading remains in line with board expectations and Q2 visibility consistent with 2007

  • Net debt reduced by £13m to £192m since year end

  • 2.5m new shares to be issued mid February under CAP incentive

3


Strategy is working
Strategy is working…….

  • Maintain operating margin:

    • Continued focus on high margin product and tight cost control

    • High operational gearing but low fixed cost base

  • Drive organic growth:

    • Opportunities for geographic and product expansion esp. emerging markets

    • Emphasis on high growth subscription products

    • Investment in electronic info services

    • More of the same (bigger & better) remains key growth driver

  • Acquisitions:

    • Focus on bolt-on acquisitions esp. in data and electronic publishing

    • Readily financed from strong operating cash flows

  • Success of strategy reflected in record 2007 results

  • Group more focused, more robust and higher quality than 2001 – better downside protection

4


More diverse business
More diverse business…

£m

Operating profit before unallocated costs

5


With higher margins
…with higher margins…

Operating margin %

6


A better revenue mix
…a better revenue mix…

2001

Other

2007

12%

Advertising

Other

Delegates

Advertising

5%

24%

37%

Delegates

22%

24%

6%

Sponsorship

21%

15%

34%

Sponsorship

Subscriptions

Subscriptions

Significant growth in revenues from subscriptions

7


A broad geographic spread
… a broad geographic spread…

2007

UK

16%

Rest of World

37%

47%

North America

Revenues by destination

8


And higher quality earnings
... and higher quality earnings…

EM/II brands account for only35% of profit (2001 65%)

9



Diane Alfano

Managing Director

Institutional Investor Memberships

11


What is a membership
What is a membership?

Institutional Investor Memberships are private peer-group networks for senior executives at leading asset and alternative asset management firms in the US and Europe who come together at roundtables to discuss critical issues.

12


Ii memberships
II Memberships

  • First membership launched in 1970

  • Currently serve 12 distinct executive roles – 881 memberships

  • Exclusive and Invitation Only – we serve the largest investment managers

  • 88% of the worlds largest asset management firms have a membership

  • Members are drawn from 21 countries

  • Members are Peers / Competitors – Buy Side Only

  • Average annual Subscription Fee of $25,000

  • Director retains editorial control of content. Content is not sponsored. Editorial objectivity and impartiality are its hallmark

  • Focus on client service

13



Key characteristics of memberships
Key Characteristics of Memberships

  • High level face-to-face interaction can’t be replicated by the web

  • High barriers to entry/strong defensible niches against competition

  • Proven resilience to economic downturns

  • Predictable and stable revenue stream and cash flow

    - Subscription-based model

    - High renewal rates- in excess of 88% for the last three years

    - Not advertising dependent

  • Fees pre-paid annually / pricing power / pricing leader

  • High operating margins average 40%

  • Brand loyalty

15


Ii memberships diversified with changing markets

LAUNCHED MEMBERS

Institutional Investor Institute (Heads of marketing) 1970 111

TraderForum (Heads of Trading) 1984 167

European Institute (C-Suite Executives) 1988 92

Fixed Income Forum (Heads of Fixed Income) 1993 51

Financial Technology Forum (Chief Technology Officers) 1995 104

Investment Funds Institute (Heads of Retail) 1995 43

European TraderForum (Heads of Trading) 1999 24

US Institute (C-Suite Executives) 2000 90

Global Fixed Income Institute (Heads Of Global Fixed Income) 2000 43

Hedge Fund Institutional Forum (Heads of Marketing) 2004 78

European Institutional Investor Institute(Heads of Marketing) 2006 36

The Legal Institute (General Counsels) 2007 42

Total 881 members

II Memberships - diversified with changing markets

16


Bespoke membership benefits
Bespoke Membership Benefits

  • Research and surveys

  • Website: Interactive password-protected. Facilitates knowledge sharing; member Q & A’s

  • Exclusive access to topical ad-hoc meetings

  • Intimate regional member breakfasts, lunches and dinner meetings

  • Post-event access to summaries and presentations

  • Discounted access to ultra high paid ticket events e.g. Sovereign Wealth Funds Roundtables

17


Clients and market
Clients and Market

  • Money management firms

  • Hedge funds

  • Banks and insurance companies

  • Corporate in house pension funds

  • Sovereign funds

  • Geographical split of members 2007

    • 71% US

    • 29% European

18


Growth strategy
Growth Strategy

  • New membership launches

    • COO Hedge Fund Forum – 2008

    • Private Wealth Institute – 2009

    • Sovereign Wealth Funds – 2009

  • Scalable model

    • Replicating US memberships in Europe and Asia

    • Replicating memberships for new client base – hedge funds

  • Creating new ultra-high paid ticket meetings for members such as Asian and Latin American Sovereign Funds

  • Enhance pricing power through Web based research

  • Potential to sell additional products based on depth of relationship with member firms

19


Business strengths
Business strengths

  • Subscription based business model

  • Diversified group of members/decision makers within the same company that control separate budget pools mitigating risk

  • 40 year track record of established demand for exclusive, high level forums

  • Member growth over the last six months

    • July 06 to Dec 06 – renewal rate was 89.6% with 71 new members

    • July 07 to Dec 07 Membership renewal rate was 90.1% added 101 new members

20


Q&A

21


Gary Mueller

Chairman, ISI

22


Mission statement
Mission Statement

To be the recognized leading provider of emerging market economic, company and industry data and information

23


Internet securities inc isi emerging markets
Internet Securities Inc (ISI Emerging Markets)

  • Founded in 1994; acquired by Euromoney in 1999

  • Delivers hard-to-get information on more than 80 Emerging Market countries through its award-winning online Emerging Markets Information Service, and several other products

  • Acquired CEIC Data Company Ltd (“CEIC”) in March 2005, the instrument of choice for economic research on Asia and the Emerging Markets by Economists around the globe

  • 480 People

  • 30 offices globally

24



Products
Products

  • EMIS - Emerging Markets Information Service

  • CEIC Asia Databases

  • IFIS - Islamic Finance Information Service

  • IntelliNews

  • iSearch

    A complementary range of subscription products

26


Revenues by sector
Revenues by Sector

FY 2001

Consultants

FY 2007

Corporates

Consultants

Financial

Institutions

Others

Financial

Institutions

Government

Corporates

Academics

Others

Academics

Government

27


Revenues by geography
Revenues by Geography

FY 2001

FY 2007

UK/

Western Europe

Latam

Latam

UK/

Western Europe

North America

North America

CEE

CEE

Asia

Asia

Successfully capitalising on demand from emerging markets

28


New product initiatives
New Product Initiatives

  • CEIC Expansion Countries: added 43 new non-Asia countries, service now covers 64 countries

  • Developed and launched CEIC Data Management platform (CDM), enabling global Internet access to the service.

  • DealWatch: Comprehensive data and forward looking editorial coverage of Emerging Markets M&A and ECM activity.

  • Compliance: Accurate information on key persons and companies critical to the Financial industry for customer verification and customer due diligence. Derogatory news from the EMIS database is included.

    Anticipating changing client needs

29


Isi growth strategy
ISI Growth Strategy

  • Market conditions

    • Emerging markets growth set to continue

  • Drive the Current Businesses

    • Grow existing customers and revenue streams

    • Upgrade existing products

    • Sector penetration

  • Seek New Revenues

    • Add new geographies

    • Develop new products

    • Bolt-on acquisitions

30


Business strengths1
Business strengths

  • Subscription-based model

  • High renewal rate

  • Business has grown every quarter

  • Business is diversified across geographies and sectors (financial services only 42%)

  • Established local sales force globally; in 2002 sales force was 29 people, now 52 people (80% in Emerging Markets)

  • Diverse customer base

31


Q&A

32

32


Bashar Al-Rehany

Chief Executive Officer

BCA Research

33

33


Vision
Vision

The leading independentprovider of top-down,

macro economic investment research to financial institutions, corporations, governments and individuals globally

34

34


Overview
Overview

Founded in 1949 with The Bank Credit Analyst

Independent provider of global investment research

Coverage of all major asset classes and regions

Client accounts range significantly in spend

Current average account size increased 4 fold in 5 years

123 staff located in Montreal, London, New York, Hong Kong, San Francisco, Buenos Aires

35

35


Financials2
Financials

36

36


Research philosophy
Research Philosophy

Define big picture (macro) environment and key themes

“Connect the dots” - countries and asset classes

Key Ingredients:

Fundamentals

Technicals

Models

Judgement and intuition

Complementary objectives:

Thoughtful and leading edge research

Timely and accurate market calls

37

37



Products1
Products

Investment Strategy

Global Investment Strategy

U.S. Investment Strategy

European Investment Strategy

Emerging Markets Strategy

China Investment Strategy

The Bank Credit Analyst - Monthly

Daily Insights

Market Analysis

U.S. Equity Sector Strategy

Global Fixed Income Strategy

Foreign Exchange Strategy

U.S. Bond Strategy

Commodity and Energy Strategy

39

39



Business development philosophy
Business Development Philosophy

Accelerated Sales Development

Aggressive business development strategy

Established geographic expertise

Successful account managed model

Global sales presence with 50 sales professionals

9 cities including London, New York and Hong Kong

41

41


Clients and market1
Clients and Market

Clients Span Various Segments

Money management firms

Hedge funds

Brokerage firms

Banks and insurance companies

Corporate pension funds

Private investors

Governments

Sovereign funds

42

42


Clients and market2
Clients and Market

Geographic Client Distribution

43

43


Strategy and prospects
Strategy and Prospects

New product development

Commodities and Energy, fiscal 2007

Premium Service – launched October 2007

Global Equity product, fiscal 2009

Real Estate product, fiscal 2010

Research group development

Add breadth and depth

Develop more bench strength

Business development

Strategically locate sales people globally

Strong prospect pipeline

Improve historically low trial conversion rate

44

44


Strategy and prospects1
Strategy and Prospects

Leverage Euromoney relationship

Global presence

Telesales expertise for lead generation

BCA presence at conferences and events

Enhance content delivery platform

Webcasts

Teleconferences

BCA Portal

45

45


Business strengths2
Business Strengths

High-end value added research content

Strong brand and reputation

Editorial and business independence

Unique research philosophy

Global research perspective

Proprietary models and vast database of historical data

Subscription model – strong deferred revenues

Broad and diverse client base

Established sales force in all major markets

Historically demand has remained high in volatile markets

46

46


Q&A

47

47


Conclusion
Conclusion

  • Group more focused and more robust with higher quality earnings than 5 years ago

  • 5 year track record supports successful strategy for growth

  • Better downside protection from growing subscription businesses and more diverse sectors

  • Further cyclical balance from significant emerging market exposure

  • Strong balance sheet and highly cash generative

  • Well supported dividend strategy

  • Continue to invest in new products to drive growth

  • Growth strategy remains focused on investment in new products, leveraging the group’s strong brands and geographical expansion

  • Thank you and ….lunch

48


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