interim results 2013 for pdf - ite group plc results presentation...financial highlights for the six...

Interim Results Six months ended 31 March 2013Six months ended 31 March 2013

Introduction

Highlights

Good underlying revenue + profit growth L4L 10% +

g g

Expansion into S.E. Asia

ABEC trading results on track for FY13

First deals completed

Profit INR 250mg

Good April results L4L 8%

Strong cash position

Revenues booked for year £174m

£22m @ 31 March

L4L 8%

2 ITE Group plc ‐ Interim Results for the six months ended 31 March 2013

01

2013 Financial Results2013 Financial Results

ITE Group plc ‐ Interim Results for the six months ended 31 March 2013

Financial Highlights for the Six Months to 31st March 2013Financial Results

a c a g g ts o t e S o t s to 3 st a c 0 3

2013 2012

Organic +£6.5m Acquisitions +£1.5mNet Biennial ‐£3.9m

Organic +£6.5m Acquisitions +£1.5mNet Biennial ‐£3.9m

Revenue £69.4m £68.6m

Gross profit margin 37% 39% Biennial impact

Timing ‐£3.3mTiming ‐£3.3m

Administrative expenses £16.4m £13.7m Staff, investment, transaction costs

Headline profit before tax £11.1m £13.1m L4L + 11%

Interim dividend per share 2.3p 2.1p + 10%


Headline PBT Bridge – Six Months to 31 March 2013Financial Results

g

14

PolygraphinterWoodexPaperex

PolygraphinterWoodexPaperex

H1 → H2: £0.9mH1 → H2: £0.9m13.1 (2.4)

(1.2)

£M

12

0.5

1.8 (0.7)

1011.1

6

8

£M

2

4

Mar 12 Headline

PBT

Net biennial effect

Timing Acquisitions Organic growth

Net admin/FX/associates

Mar 13 Headline

PBT


Cash Flow Bridge – Six Months to 31 March 2013Financial Results

g

70+7% to

shareholders+7% to

shareholders

62.1

39.7 (10.7)

ABEC £14.0mTrade‐Link £4.4mABEC £14.0mTrade‐Link £4.4m

60

50

£M

(19.3)(2.5)

30

40

13.021.7

1.5

10

20

Net cash Sept 12

Cash flow from

operations

Tax Acquisitions & deferred

consideration

Net cash Mar 13

Dividends Other


Sales and Yield AnalysisFinancial Results

y

Metres RevenueGrossProfit

Yield

000s £m £m Per m²

Results from Events 368 68.0 26.7

2012 Non annual 2012 (34) (5.6) (2.4)

Recurring Events 334 62.4 24.3 187

2013

Acquisitions 12 1.5 0.5

Timing differences (28) (3.3) (1.2)

Organic growth 12 6.7 1.8

i 330 6 3 2 20Recurring Events 330 67.3 25.4 204

2013Non annual 2013 23 1.7 0.0

R l f E 353 69 0 25 4

7

Results from Events 353 69.0 25.4


Currency & HedgingFinancial Results

y g g

C 2013 (F) % 2012 %

Average Sales Translation Rate

Currency 2013 (F) % 2012 %2013YTD

2012Full Year

EUR 36 54 1.20 1.17 ‐ 2.5% dilution

RUB 37 21 49 47

GBP 7 7 1.0 1.0

YTL 8 8 2 83 2 82

‐ 4% dilution

YTL 8 8 2.83 2.82

Other 12 10

1 £0 35 1 R bl £0 351 cent = £0.35m : 1 Ruble = £0.35m

Balanced currency exposure ⅓ Euro ⅓ Ruble ⅓ other


Forward cover 2013 – 2016 : €93m @ €1.19 : £1

Financial results

April Eventsp

2013 (m2) 2012 (m2) +/‐ %

MosBuild 68 500 66 100 + 4%MosBuild 68,500 66,100 + 4%

Turkeybuild 36,200 36,100 ‐

TransRussia 11,300 10,100 + 12%

Moscow International Protection + Security

11,400 10,000 + 14%


Trading Update – 2013 Contracted RevenueFinancial Results

Acquisitions weightAcquisitions weightg p

90

100

95%

£156m £174m

Acquisitions weightevent portfolio towards Spring

Acquisitions weightevent portfolio towards Spring

62.1

70

oked

vent year) 80

90

83% 85% 83%

91%

84%

95%£91m £99m £94m £130m

(11.6)

40

Revenu

e Bo

oat 10t

hMay of e

v

60

50

10

20

30

(a

10

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013*

* Based on 2013 consensus revenue of £183m


02

StrategyStrategy


Strategy


Expanding the Business ModelStrategy

p g

+ international sales + investment

International BrandsNew Sectors

IndiaABEC (Construction), Metallurgy, Paper

TurkeyFood Construction Travel

MoscowPackaging, Furniture, Dairy, Wood,

Printing

Established ITE

‘Geo‐cloning’

UKChildrenswear, Lingerie,

Designerwear

Food, Construction, Travel, Machinery Markets & Sectors

UkraineMotors, Oil, Logistics,

HVAC

Turkey India

S. E. AsiaChina

Expanding Markets

AsiaBeauty, Machinery


Growth of ITE’s Revenue BaseStrategy

2012 105 65 172

+ 17%

2011

2012

Revenues104

105

39

65

155

172

2010

Acquisitions

90 20 113 Biennial

Organic

2008

2009Financial Recession

105

98

2

11

110

117

2008

20 40 60 80 100 120 140 160 180 200

105 2 110

£m Revenue


£m Revenue

2012 Revenue by GeographyStrategy

y g p y

180

200

62.1

140

160

180

61.1

(11.6)

80

£M 120

100

Acquisitions

Organic35.1111.2

20

40

60 70.1

24 9

2.1

20 6 1 320

Russia Central Asia & Caucasus

Eastern & Southern Europe

UK & Western Europe

Rest of the World

Total

24.9

7.8

20.6

8.3

1.32.1


Return on InvestmentStrategy

2012 £12 14%

2011

2012

£63m

£12m 14%

18%

2010 £13m 26% 2012 Profits Capital invested

= ROI %

2008

2009

£17m

£10m 17%

11%2008

10 20 30 40 50 60 70

£17m 11%

Acquisition spend in year – including deferred consideration (£m)


q p y g ( )

Revenue DiversificationStrategy

2008 2012

32%43% 37%

29%

5%

Events by GP:15%

10%9%

20%


Primary Business ObjectivesStrategy

y j

• Create sustainable growth in headline EPS

• Create and maintain sustainable positions of market leadership in the exhibition business in high growth markets


ITE’s Growth 2008 ‐ 2012Strategy

£110.1m£172.3m(+57%)

Revenue

£37.1m£53.0m(+43%)

Headline Profit

(+43%)

10.1p16.9p(+67%)

Headline EPS


03

Divisional AnalysisDivisional Analysis


Divisional Analysis ‐ Six Months to 31 March 2013

Divisional Analysis

Divisional Analysis Six Months to 31 March 20132013 2012

Russia

i

Revenue Contribution

£40m £12.2m

Revenue Contribution

£40m £13.0m

C. Asia

S/E Europe

£11m £2.9m

£12m £1.9m

£12m £3.5m

£11m £2.1m

ROW

Group

£6m £1.5m

£69m (£7.4m)

£6m £1.3m

£69m (£6.8m)

Headline PBT £11.1m £13.1m


RussiaDivisional Analysis

2013 2012L4L revenue growth 16%MOSCOW

m² ‘000 161 183

Revenue £40m £40m

St.

MITT flat / Aquatherm strongMOSCOW

Few events in H1

PETERSBURGGood growth in Industrial based events

L4L revenue growth 4%g

Wall bound events / new venue plans for 2016KRASNODAR

L4L revenue growth 21%NOVOSIBIRSK

L4L revenue growth 21%

Volume & yield growth in new venue

22

Looking forward... Good April trading results


Central AsiaDivisional Analysis

2013 2012L4L Revenue down 1%KAZAKHSTAN

m² ‘000 31 33

Revenue £11m £12m

AZERBAIJAN

KIOGE steadyKAZAKHSTAN

L4L revenue growth 34%AZERBAIJAN

Additional one‐off forum business

L4L revenue growth 3%g

Large timing differences in H1UZBEKISTAN

23

Looking forward... Steady growth


Eastern & Southern EuropeDivisional Analysis

p

2013 2012L4L revenue growth 8%UKRAINE

m² ‘000 136 123

Revenue £12m £11m

TURKEY

Acquired businesses well integratedUKRAINE

L4L revenue growth 4%TURKEY

Venue development delayed

24

Looking forward... More potential bolt–ons in Turkey


Rest of the WorldDivisional Analysis

2013 2012L4L revenue growth 5%UK

m² ‘000 30 29

Revenue £6m £6m

INDIA

Niche extensions trading wellUK

ABEC performing in line with expectations INDIA

Re‐focussing ITE’s existing business

Acquisitions in Malaysiaq y

New launches planned in AsiaASIA

25

Looking forward... New opportunities in India & Asia


GDP Growth in ITE’s MarketsDivisional Analysis

2013 GDP growth forecast %

2014GDP growth forecast %GDP growth forecast % GDP growth forecast %

Russia 3.3 3.8

Kazakhstan 5.5 5.7

Azerbaijan 4.1 5.8

Uzbekistan 7.0 6.5

Ukraine 0.0 2.8

Turkey 3.4 3.7

UK 0.7 1.5UK 0.7 1.5

India 5.7 6.2

Source: IMF World Economic Outlook Database, April 2013


Key messagesSummary

y g

Good trading conditions in core markets

Expansion into Asia underway – more to come

Portfolio synergies are gaining momentum

Strong balance sheet – cash today of £19m

Good pipeline visibility


Thank You


Q&AQ&A


04

AppendicesAppendices


Shareholder Structure at 27 April 2013Appendices

p

% No. of Shares(millions)

BlackrockSchrodersThreadneedle InvestmentsStandard LifeScottish Widows

14.9%11.6%6.8%6.4%6.1%

37.228.917.015.815.3

Legal and GeneralOld MutualDirectors

ESOTh d d d l

4.5%3.8%1.5%

1.8%

11.19.63.8

4.6Other Institutions and individuals 42.6% 105.8

Total Shares in issue 100% 249.1

Options in the money: 0.5% 1.25m

Management including options in the money 2.0%

Free float 96.2%

Average daily trading volume (6 months) 0 3m

31

Average daily trading volume (6 months) 0.3m


Key Exhibitions (in 2013 gross profit order)Appendices

y ( g p )

Rank Event Location 2013m² sold

2012m² soldm sold m sold

1 MosBuild Moscow 68,500 66,100

2 MIOGE Moscow June ‘13 22,800*

3 Moscow International Travel & Tourism (MITT) Moscow 19,500 20,000

4 World Food Moscow Moscow Sept ‘13 24,400

5 Turkeybuild (YAPI) Istanbul 36,200 36,100y ( ) , ,

6 MODA UK (Spring) Birmingham 18,300 17,300

* Last edition in 2011

Events by GP (2012):

45%31%

13%11%


13%

Consolidated Balance SheetAppendices

Mar‐13audited £‘m

Mar‐12audited £‘m

Non Current Assets

• Goodwill & Intangibles 137.5 131.6

• Other non‐current assets 23.9 9.2

161 4 140 8161.4 140.8

Current Assets

• Debtors due within 1 year 61.5 55.8

• Net Cash 21.7 16.4

83.2 72.2

Creditors

• Deferred Revenue & Creditors 136.8 115.6• Deferred Consideration 0 8 3 4

£75.3m £59.8m

Deferred Consideration 0.8 3.4• Deferred Tax 13.0 12.3

• Provisions 1.3 1.6

151.9 132.9

33

Net Assets 92.7 80.1


Venue Pre‐payments and LoansAppendices

p y

Venue Location

Prepayments

31 March 2013

Theme

Protection

Rates

Agreed

Expocentre Novosibirsk £2.4m 2021 2021

Atakent Almaty £1.0m 2017 2017

IEC Kiev £1.4m 2014 2014

Uzexpocentr Tashkent £0.3m 2019 2019

CNR Istanbul £1.0m 2014 2014

Expocentre Baku £0.4m 2015 2015

TOTAL £6.5m

34

*show specific


Future Consideration at March 2013Appendices

Deferred Consideration £m Financial Years

Jacket Required (UK) £0.5m 2014

Beautex (Ukraine) £0.3m 2013 & 2014

£0.8m

Puts & calls

Turkeybuild (20%) £10.1m 2013 & 2014

Summit £1m 2014 or 2015

Scoop (Moda) (60%) £1m 2014 or 2015

ABEC (for extra 32%) £15m 2016ABEC (for extra 32%) £15m 2016

Tradelink £1.2m 2015

ECMI £4.4m 2017 & 2019

£32.7m


Revenue by Sector & Region Forecast 2013 (2012) ActualAppendices

y g ( )

Russia

C l i

2013 2012

62% 61%Construction

Oil & Gas

2013 2012

37% 42%

13% 7%

Central Asia & Caucasus

15% 16%

Eastern & Southern Europe

15% 16%

UK & Western Europe

6% 6%

Food 10% 10%

Travel 8% 9%

Motor 5% 5%

Fashion 6% 6%pRest of the World

2% 1% IT& Medical

Other

5% 5%

16% 16%


interim results 2013 for pdf - ite group plc results presentation...financial highlights for the six...

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