Annual Report & Accounts 2010

Annual Report & Accounts 2010 Annual Report & Accounts Annual Report & Accounts 2010 www.euromoneyplc.com Euromoney Institutional Investor plc Nestor House, Playhouse Yard, London EC4V 5EX Euromoney Institutional Investor PLC Euromoney Institutional Investor plc Euromoney Institutional Investor PLC Euromoney Institutional Investor PLC is listed on the London Stock Exchange and is a member of the FTSE 250 share index. It is a leading international business-to-business media group focused primarily on the international finance, metals and commodities sectors. It publishes more than 70 magazines, newsletters and journals, including Euromoney, Institutional Investor and Metal Bulletin. It also runs an extensive portfolio of conferences, seminars and training courses and is a leading provider of electronic information and data covering international finance, metals and commodities, and emerging markets. Its main offices are located in London, New York, Montreal and Hong Kong and more than a third of its revenues are derived from emerging markets. Our perfOrmance GrOup accOunts Highlights 01 Independent Auditors’ Report 46 Our Divisions 02 Consolidated Income Statement 47 Chairman’s Statement 04 Consolidated Statement of Comprehensive Income 48 Appendix to Chairman’s Statement — Consolidated Statement of Financial Position 49 Reconciliation of Group Income Consolidated Statement of Changes in Equity 50 Statement to Underlying Results 06 Consolidated Statement of Cash Flows 51 Directors’ Report 07 Note to the Consolidated Statement of Cash Flows 52 Notes to the Consolidated Financial Statements 53 euromoneyplc.com Our GOvernance Company accOunts Queen’s Award for Enterprise 2008 in the Directors and Advisors 20 Independent Auditors’ Company Report 101 International Category Corporate Governance 22 Company Balance Sheet 102 Corporate Social Responsibility 28 Notes to the Company Accounts 103 Claro Silk & Gloss Directors’ Remuneration Report 30 OtHer Claro is a white coated, wood-free paper and board range made from ECF pulp. Ideal for printing high quality Five Year Record 114 magazines, brochures, reports and accounts Financial Calendar and Shareholder Information 115 Euromoney Institutional Investor PLC Annual Report and Financial Statements 2010 Highlights “The resilience of subscription income combined with a good Record profits recovery in advertising and sponsorship revenues during the Highlights second half to produce a record profit, and this revenue growth has continued into the first quarter of the new financial year. Cash flows are strong and debt is falling rapidly to leave headroom for Our Performance increased investment in new products, most of them with digital platforms, as well as small strategic acquisitions. The external environment, however, continues to be threatened by sovereign debt problems in the eurozone and by the challenges facing financial institutions in developed countries. Those considerations apart, the group is well placed to continue to grow.” Padraic Fallon, Chairman Revenue Adjusted Operating Operating Profit £330m Profit* £82.1m Our Governance £100.1m 100.1 332.1 317.6 330.0 82.1 81.3 79.4 61.0 27.2 2008 2009 2010 2008 2009 2010 2008 2009 2010 Adjusted Profit Profit/(Loss) Adjusted Diluted Group Accounts before Tax* before Tax Earnings per share* £86.6m £71.4m 53.5p 86.6 71.4 53.5 44.4 67.3 63.0 40.4 37.4 2008 2009 2010 2008 (17.4) 2010 2008 2009 2010 2009 Diluted Earnings/(Loss) Dividend Net Debt Company Accounts per share 18.0p £128.8m 49.5p 49.5 19.25 18.0 172.0 165.1 40.4 14.0 128.8 2008 (6.7) 2010 2008 2009 2010 2008 2009 2010 2009 * See Reconciliation of Group Income Statement to underlying results on page 6. Euromoney Institutional Investor PLC Annual Report and Financial Statements 2010 01 20082.04 09/12/10 Proof 6 Our Divisions Financial PublisHing 23% Training 9% of group of group £76.6m Revenue Turnover £29.9m Revenue Turnover Financial publishing includes an extensive The training division runs a comprehensive portfolio of titles covering the international range of banking, finance and legal capital markets as well as a number of courses, both public and in-house, under specialist financial titles. Products include: the Euromoney and DC Gardner brands. magazines, newsletters, journals, surveys Courses are run all over the world for and research, directories, and books. A both financial institutions and corporates. selection of the company’s leading financial In addition, the company’s Boston-based brands includes: Euromoney, Institutional subsidiary, MIS, runs a wide range of Investor, EuroWeek, Latin Finance, courses for the audit and information Asiamoney, Global Investor, Project Finance, security market. Futures & Options World, Total Derivatives and the hedge fund titles EuroHedge, InvestHedge, AsiaHedge and AR. business PublisHing 18% of group Turnover £59.1m Revenue The business publishing division produces specialist magazines and other publications PRINCIPAL BRANDs covering the metals and mining, legal, telecoms and energy sectors. Its leading brands include: Metal Bulletin, American Metal Market; International Financial Law Review, International Tax Review and Managing Intellectual Property; Capacity; Petroleum Economist, World Oil and Hydrocarbon Processing. 02 Euromoney Institutional Investor PLC Annual Report and Financial Statements 2010 20082.04 09/12/10 Proof 6 ConFerences DaTabases anD informaTiOn services anD seminars 23% 27% of group of group Our Divisions £78.8m Revenue Turnover £89.8m Revenue Turnover Our Performance The group runs a large number of The group provides a number of sponsored conferences and seminars for the subscription-based database and electronic international financial markets, mostly under information services for financial markets. the Euromoney, Institutional Investor, Metal Montreal based BCA Research is one of the Bulletin and IMN brands. Many of these world’s leading independent providers of conferences are the leading annual events global investment research. The company’s in their sector and provide sponsors with a US subsidiary, Internet Securities, Inc., high quality programme and speakers, and provides the world’s most comprehensive outstanding networking opportunities. Such service for news and data on global events include: The Global Borrowers and emerging markets under the Emerging Investors Forum; the Annual Global Hedge Markets Information Service (EMIS) brand, Our Governance Fund Summit; the European Airfinance and also includes CEIC, one of the leading Conference; the Islamic Finance Summit; the providers of time-series macro-economic Super Bowl of Indexing®; and Global ABS data for emerging markets. The company and ABS East for the asset-backed securities also offers global capital market databases market. In the energy sector, the group runs through a venture with its AIM-listed the world’s leading annual coal conferences, partner, Dealogic plc. Coaltrans and Coaltrans Asia; TelCap runs International Telecoms Week, the best meeting place worldwide for telecom carriers and service providers; and MIS runs a leading event for the information security sector in the US, InfoSec World. Group Accounts Company Accounts Euromoney Institutional Investor PLC Annual Report and Financial Statements 2010 Euromoney Institutional Investor PLC Annual Report and Financial Statements 2010 03 20082.04 09/12/10 Proof 6 chairman’s statement Padraic Fallon Your company’s revenues are growing as I We proved in the year before last – a very dangerous one in financial write, and the number of our colleagues is markets – that we could successfully defend our earnings in very tough conditions by quickly restructuring costs. The results for last year also growing as we invest for further growth. demonstrated how the company could perform when revenues began to The new financial year has begun well on the grow again. They also demonstrated how valuable a strong subscription back of the old, when we produced a 37% base can be when more volatile revenues are hit hard. Overall, on the increase in adjusted profits before tax to back of a 4% increase in revenues, the company delivered an increase £86.6 million, easily a record. Cash flows are in adjusted diluted earnings a share of 32% and, as promised, the total very strong, debt is falling rapidly, and there dividend, if the proposed final is approved, will be covered three times by earnings, to produce an increase of 28% to 18p a share. is more headroom for acquisitions that fit our strict criteria. After strong first half results, driven largely by the benefit of cost cuts made the year before, the second half brought an increase in revenues We cannot see far into this new financial year, yet through 41 years of of 16%, after an 8% fall in the first. This better than expected revenue Euromoney’s history we have seen how volatile markets can be, how performance helped to offset the group’s significant investment in new big financial institutions can fail, and how fast the business world can products and the online migration of its print businesses. The group’s change, so we continue with a strategy that increasingly rests on long- adjusted operating margin improved to 30% last year, against 25% term growth in emerging markets or, more accurately, in those outside in 2009. the OECD member countries. Net debt at September 30 was £128.8 million compared to £178.1 That strategy is one of providing the highest quality independent million at March 31. The sharp reduction in debt levels reflects the good research, information, data, events, and training, at an international second half revenue performance as well as the group’s rigorous debt level, increasingly from digital platforms and with a growing emphasis management and strong cash flows. Our net debt to EBITDA ratio fell to on subscription income. Its emphasis is on owning high quality products 1.3 times, against 1.9 times at March 31, similar to the level immediately that are valued in bad times as well as good, and are as resilient as before the acquisition of Metal Bulletin plc in 2006. we can make them, and we plan to add more of this type of product in 2011 than in any year I can remember.

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