ITE Group plc Preliminary Results. Year ended 30 September 2015

Transcription

1 ITE Group plc Preliminary Results Year ended 30 September 2015

2 Overview Group revenues 136m; HPBT 47.2m In line with market expectations Russia hit by oil prices and currency Russian profits impact - 12m before biennials Good performance ex Russia Chinacoat and ABEC Strong cost control Gross margin maintained at 46% Increased geographic diversification Breakbulk, Eurasia Rail and Africa Oil Week Dividend held at 7.4p Cover more than 2x

3 Forward Look m of revenues booked FY16 Circa 57% of consensus revenues L4L volumes and revenues down 10% Russia H1 trading still catching up' Central Asia reflecting low oil price Asia and Turkey trading strongly L4L revenues and volumes up First time impact of 2015 M&A to come Breakbulk, Africa Oil Week, ABEC Focus on organic development and small M&A In industry verticals, in Asia Strong Q1 performance from Asia Chinacoat and ABEC

4 Financial Results Section 1 Year ended 30 September 2015

5 Financial Results 5 Financial Highlights for the year to 30 September 2015 Introduction: Revenue 135.8m 174.8m -22% FX gain 5.9m 4.0m Underlying trading - 20m FX impact - 22m Biennial/timing - 3m Acquisitions + 6m Use of natural hedging Gross Margin 46% 46% Strong cost management Headline profit before tax 47.2m 60.3m -22% Headline diluted EPS 15.3p 20.2p Small equity raise for AOW Dividend per share 7.4p 7.4p Dividend cover 2.1x

6 Revenue M Financial Results 6 Revenue Bridge (2014 to 2015) 180 m RUB 17.6 TRY 1.5 UAH 1.1 Other m Russia 17.5 Central Asia (3.5) (21.7) (20.0) Net Biennial & Timing FX Impact Underlying Trading Acquisitions 2015

7 Financial Results 7 Gross Margin 46% in both years Analysis of costs % of Revenue % of Revenue Venue (incl. stand construction) 28% 27% Staff 13% 14% Marketing & Onsite 13% 13% Actions Flex venue to volumes sold Reduced commissions and review of staffing levels Review of all supplier costs

8 Headline PBT M Financial Results 8 Headline PBT Bridge (2014 to 2015) 70 FX on revenue FX on costs ( 21.7m) 15.2m 60 Operating profit 3.7m Financing ( 1.1m) (6.5) 2.6 (12.5) Headline PBT Net Biennial & Timing Net onceoff forex FX Impact 2015 Acquisitions (net of overheads) Underlying Trading 2015 Headline PBT

9 Financial Results 9 Net Debt Bridge (2014 to 2015) (18.7) Net working capital drain 4m Non cash 6m Breakbulk Eurasia Rail Africa Oil Week Comtrans Other 25.3m 6.0m 16.0m 3.2m 5.1m 0 (6.6) (10) (20) (30) (40) Placing m Financing - 2.3m Capex - 1.7m FX - 1.4m Minority dividends - 0.3m (50) (60) (14.8) 37.0 (25.3) (55.6) 6.3 (52.4) (70) Net Debt Sept 14 Cash Flow from Operations Dividends & Tax Acquisitions & Def Con Other Net Debt Sept 15

10 Financial Results Balance Sheet 10 Net Debt 52m 1 x EBITDA Facilities - 100m Term - 31/3/19 Net 30 Nov 2015 (post ABEC) 65m Less than 1m of Def Con in next 12 months Maximum = 2 x EBITDA

11 Financial Results Balance Sheet 11 m 20 Translation loss B/S Gain 0 Revenue 22 Profit Currency Average Translation Rate FY 15 (YTD) % change FY 14 Profit Impact Full Year RUB 85-47% 5.6m Euro Sales average 1.30 (-9% yoy all in trading result) Euro hedged forward 55m at Introducing more sterling and USD invoicing now accounts for 25% of sales

12 Financial Results 12 Trading Update 2016 Contracted Revenue %* 49%* 60%* 59% * 57% ** % % booked to 27 th November (at actual event rates or 27 th Nov rates for future events) 93m (of 172.3m) 95m (of 192.3m) 106m (of 174.8m) 81m (of 135.8m) 77m 73m (of 133.3m)** Event Financial Year * % booked to 27 Nov at actual event rates. Expressed as a % of actual revenue ** FY 2016 % of Full year revenue is based on consensus forecast of 133.3m

13 Divisional Analysis Section 2 Year ended 30 September 2015

14 Divisional Analysis 14 Overview Revenue ( m) Contribution ( m) Revenue ( m) Contribution ( m) Russia Asia 4 4 RoW 15 2 Central Asia 27 9 S/E Europe 18 6 Once-off FX 6 Corporate O/H (11) Group HPBT (11)

15 Divisional Analysis 15 Russia Operating Review L4L volume sales down by 20% Average Ruble devaluation of circa 50% v. prior year Construction and Oil & Gas sectors hardest hit m² Revenue 72m 103m International business impacted heavily FY 16 negative L4L volume sales (mainly H1) MosBuild to hold at 38K sqm level Focus on maintaining margin

16 Divisional Analysis 16 Asia Operating Review Record results from ABEC New venue prospects improving Increased stake in ABEC to 60% Fully consolidated basis India m² * 94 Revenue 13m 14m Record Chinacoat result in FY16 New launch activity M&A supporting strategy Outbound sales potential China, Japan, Malaysia SE Asia / China Fully consolidated basis m² Revenue 18m 16m * Weaker biennial year

17 Divisional Analysis 17 RoW Operating Review Moda growth from new events Breakbulk performing ahead of expectations Poland strong growth from low base Fully consolidated basis m² Revenue 15m 12m Breakbulk continued strong performance expected in FY16 AOW solid performance Expansion prospects for fashion vertical

18 Divisional Analysis 18 Central Asia Operating Review L4L volume sales down 9% - mostly in H2 Kazakhstan & Uzbekistan traded positively until September Devaluation of currencies Manat Q2, Tenge Q m² Revenue 27m 34m FY16 to reflect effect of lower oil prices and devaluation -20% Russian meterage still under pressure

19 Divisional Analysis 19 Eastern & Southern Europe Operating Review L4L volume sales down circa 25% Ukraine Contribution from Ukraine only 2% of Group profits Decline over - visitors remain strong m² Revenue 3m 6m New launch activity L4L Volume up 5% - ex non-recurring events Turkey TurkeyBuild benefited from new venue space FY16 bookings strong +10% m² Revenue 15m 15m Outbound sales into Russia?

20 Strategy: Geographic Diversification through Industry Verticals Year ended 30 September 2015

21 Strategy Top Level 21 To develop and maintain industry leadership in exhibitions in emerging markets

22 Strategy Geographical Diversification of Revenues 22 FY12* 2% FY14* FY16 (indicative)* 16% 6% 6% 15% 18% 34% 11% 51% 15% 61% 17% 17% 13% 17% Increasing geographical diversification Russia Asia ESE CA ROW *including 100% of revenue from associates

23 Strategy 23 Acquisition Breakbulk Africa Oil Week* Eurasia Rail Date December 2014 March 2015 January 2015 Geography Global South Africa Turkey Sector Transport & Logistics Oil & Gas Transport & Logistics Consideration $40m 16m 10m Pre-acquisition EBIT $2.6m 4.9m - Event Size (m2) Houston 5,000 Cape Town 1,300 Istanbul 9,400 Antwerp 6,000 AIF conference Shanghai 3,200 * 50.1% acquired

24 Events in Asia 24 Beijing [25] Tokyo [1] Mumbai [220] Bangalore [10] Delhi [70] Chennai [10] Ho Chi Minh City [1] Kuala Lumpur [40] Shanghai [20] Hong Kong Guangzhou [25] [10] Total Revenue 2015 Pro forma 100% 3.9m 30.6m Jakarta [25]

25 Events in China 25 ChinaCoat & SF China Paints, coatings and surface finishing 50% owned 36,000 sqm Shanghai Guangzhou Breakbulk China Transport & logistics 100% owned 2,650 sqm The Hub Branded fashion 60% owned 250 sqm Total Revenue 2015 Pro forma 100% 0.8m 11.5m Fasteners (pending approval) Industrial fasteners & fixings 70% owned 17,000 sqm GDP 2016 Est 6%+

26 Events in India 26 ABEC Building, Education, Real Estate, Fashion 60% owned 104,000 sqm Mumbai Delhi ITEI Paper, Metals, Roofing 100% owned 6,000 sqm Bangalore Chennai Total Revenue 2015 Pro forma 100% 0.9m 13.0m GDP 2016 Est 7%+

27 Events in Asean 27 ECMI ITE Beauty, Laboratory 50% owned 10,000 sqm Ho Chi Minh City Kuala Lumpur Tradelink ITE Metals, Building 100% owned 14,000 sqm Debindo ITE Building 50% owned 18,000 sqm Total Revenue 2015 Pro forma 100% 2.2m 6.1m Jakarta GDP 2016 Est 5%+

28 Forward Key Messages 28 Trading in Russia is stabilising at a lower level First time impact of 2015 M&A to come Russia will be circa 40% of ITE s 2016 business Asia and Turkey are continuing to perform strongly Continuation of strategy further expansion in Asia

29 Thank you Questions & Answers Year ended 30 September 2015

30 Appendices Year ended 30 September 2015

31 Appendices 31 Shareholder Structure (as at 27 Oct 2015) Brandes Schroders Franklin Templeton Mason Hill Columbia Threadneedle SEB Mawer Fidelity Management & Research Legal and General Directors ESOT Other Institutions and individuals % No. of Shares (millions) Total Shares in issue Options in the money: Management including options in the money Free float (Excluding Directors & ESOT) 99.0 Average daily trading volume (6 months) 0.4

32 Appendices 32 Performance Analysis Metres Revenue Gross Profit 000s m m 2014 Results from events Non annual 2014 (70) (11) (3) Timing differences (15) (3) (1) Recurring Events Acquisitions FX translation - (22) (10) Net organic change (96) (20) (14) Eurasia Rail Breakbulk 2015 Non annual Timing differences Results from events

33 Appendices 33 Key exhibitions (in 2015 gross profit order) Rank Event Location 2015 m² sold 2014 m² sold 1 MosBuild Moscow 40,300 65,400 2 Moscow International Travel & Tourism (MITT) Moscow 16,300 20,000 3 World Food Moscow Moscow 22,600 25,800 4 TurkeyBuild (YAPI) Istanbul 40,000 36,300 5 MODA UK Birmingham 32,400 33,700 6 MIOGE Moscow 18,500 24,000* * 2013 edition Events by Revenue (2015) Top 1-5 Top 6-10 Top Rest 15% 18% 12% 55% Events by GP (2015) Top 1-5 Top 6-10 Top Rest 28% 23% 45% 34% 13% 15%

34 Appendices 34 Consolidated Balance Sheet Non Current Assets Sep-15 ( m) Sep-14 ( m) Goodwill & intangibles Other non-current assets Current Assets Trade debtors Prepayments Other current assets Net (debt)/cash (52.3) (14.8) (8.3) 34.1 Creditors Deferred revenue (49.8) (60.8) Trade & other payables (14.6) (16.7) Deferred consideration & put option liabilities (19.3) (6.4) Deferred tax (10.0) (10.9) Provisions (0.3) (0.4) (94.0) (95.2) Net Assets

35 Appendices 35 Future Consideration (at 2015) Deferred Consideration m Financial Years Breakbulk Summit Indobuild Paid Nov Puts & calls- cash settle m Financial Years ABEC (for extra 32%) Tradelink Indobuild ECMI Scoop (for 5% MI) & Paid Oct 15 - Paid Nov 15 Puts & calls equity settle m Financial Years AOW &

36 Appendices 36 Venue Relationships Venue Loans/Prepayments 30 Sept 2015 m Russia 4.3 Central Asia 0.3 Eastern & Southern Europe 1.8 Total 6.4

37 Appendices 2015 Revenue by Sector & Region 37 Revenue by Region Revenue by Sector 3% 11% 7% 9% 6% 7% 13% 6% 20% Russia (59%) Central Asia (19%) Eastern & Southern Europe (13%) Asia (3%) Rest of the World (6%) 53% Advanced Technologies (7%) Beauty & Healthcare (7%) 13% Build & Interiors (29%) Connect (7%) 9% Oil, Gas & Energy (7%) Fashion (7%) Food & Packaging (14%) Manufacturing & Industrial Technology (10%) Transport & Logistics (3%) Travel & Tourism (9%) 13% 4% 26% 2014 figures in brackets