Interim results july 2018 quickening the pace 2 DRIVING SCALE & MOMENTUM
agenda Overview Financial and operational highlights Strategy update Outlook Summary Q&A WWW.TARSUS.COM 2
overview Strong ongoing organic growth Visitor growth +13% Revenue growth +12% Launch programme delivering Full year bookings up 10% Encouraging outlook for the full year WWW.TARSUS.COM 3
financial & operational highlights WWW.TARSUS.COM WWW.TARSUS.COM 4
financial highlights Strong financial performance Revenues heavily second half weighted Good underlying like-for-like revenue growth of 12% Interim dividend up 10% to 3.3p Net debt of 94.7m at 30 June 2018 Gearing on track to return to long term target range by year end (1.5-2.0 x net debt: EBITDA) WWW.TARSUS.COM 5
financial overview 2018 2017 2016 2018 v 2016 GROUP REVENUE 35.6m 39.8m 27.0m 32% ADJUSTED PBT 5.8m 6.8m 4.0m 45% ADJUSTED TAX RATE 18% 16% 15% ADJUSTED EPS 2.8p 3.5p 2.8p 0% INTERIM DIVIDEND 3.3p 3.0p 2.7p 22% NET DEBT 94.7m 85.3m 57.3m WWW.TARSUS.COM 6
revenue drivers 42 40 38 39.8m 4.2m 36 34 1.6m 1.9m 3.6m 35.6m 32 30 2017 Biennials Phasing FX Growth 2018 WWW.TARSUS.COM 7
eps bridge 4 3 2.8p 1.0p 0.9p 2.8p 2 0.1p 1 0 2016 Event timing FX Growth 2018 WWW.TARSUS.COM 8
net debt bridge 105 100 95 3.7m 4.1m 1.1m 3.5m 94.7m 90 85 84.8m 4.5m 80 75 Last Year Acquisitions Dividends Interest & Tax Exceptional costs Cashflow from Ops Current Year WWW.TARSUS.COM 9
net debt Net debt at 30 June 2018 94.7m Represents gearing of 2.36x net debt: EBITDA Long term target remains 1.5-2.0x Year end target approx. 2.0x WWW.TARSUS.COM 10
results by geography WWW.TARSUS.COM WWW.TARSUS.COM 11
revenue by segment profit by segment 40 40 35 35 30 30 25 25,m 20 15,m 20 15 10 10 5 5 0 2016 2018 0 2016 2018 Americas EMEA Asia Americas EMEA Asia WWW.TARSUS.COM 12
ASIA 2018 2017 2016 2018 v 2016 ANNUAL REVENUE 15.3m 13.1m 7.7m 99% ADJUSTED PROFIT 6.5m 5.0m 1.9m 242% Strong trading in China led by Shenzhen events Hometex particularly strong SE Asia trading in line with expectations (H2 weighted) Good trading in prospect for second half WWW.TARSUS.COM 13
americas 2018 2017 2016 2018 v 2016 ANNUAL REVENUE 15.2m 16.3m 12.2m 25% ADJUSTED PROFIT 2.9m 3.0m 4.3m (33%) Strong second half and full year Connect performing well (H2 weighted) Off Price event solid Medical division revenues continue growth trend (Painweekend phasing) Expo Manufactura strong in Mexico (no Plastimagen in 2018) WWW.TARSUS.COM 14
emea 2018 2017 2016 2018 v 2016 BIENNIAL REVENUE - 4.2m - - ANNUAL REVENUE 5.2m 6.3m 7.1m (27%) TOTAL 5.2m 10.5m 7.1m (27%) ADJUSTED PROFIT 0.1m 2.2m 0.5m (80%) Dubai events performed well Turkey trading slow in H1 (mainly smaller shows and Turkish Lira weaker) Strong trading in prospect for Turkey in second half WWW.TARSUS.COM 15
strategy update WWW.TARSUS.COM WWW.TARSUS.COM 16
strategy overview - QTp2 Quickening the Pace 2 - Driving Scale and Momentum Builds on successful Quickening the Pace: Evolution Focus on: Peer leading growth Building scale at event level Driving strong shareholder returns Strategy to take Tarsus through to 2021 WWW.TARSUS.COM 17
Delivering on Quickening the Pace 3 PILLARS ORGANIC GROWTH REVENUE AND BUYERS LAUNCHES ACQUISITIONS BOLT-ONS WWW.TARSUS.COM 18
strategic progress Good momentum in organic growth Visitor/buyer programme delivering Building scale in the portfolio Launch programme delivering Acquisitions in Connect and Mexico SIUF minority purchased Management team scaling to support growth WWW.TARSUS.COM 19
organic growth - launches WWW.TARSUS.COM WWW.TARSUS.COM 20
organic growth - launches 9 new launches in H1 2018 Launch portfolio now stands at 49 Expected to deliver increasing share of total group revenue for FY2018 As events scale financial returns are accelerating WWW.TARSUS.COM 21
launch portfolio +9 +8 (14) 46 49 2017 Launch H1 2018 Launch planned H2 2018 Closed 2018 WWW.TARSUS.COM 22
launch portfolio - progression 2015 2016 2017 2018 H1 H2 Total NEW LAUNCHES 15 10 28 9 8 17 REPEATED - 8 18 7 19 26 TOTAL 15 18 46 16 27 43* SHARE OF GROUP REVENUE 2% 3% 4% 9% 9% *Portfolio includes an additional six events running in 2019 WWW.TARSUS.COM 23
launch portfolio - revenue build up,m 9 8 7 6 5 4 3 2 1 0 2015 2016 2017 2018* *Estimated net profit trend 2014 2015 2016 2017 2018 WWW.TARSUS.COM 24
launch CASe study - labelexpo bangkok Planning started Spring 2015 Show announced February 2017 Held May 2018 Net square metres - 4,000+ Revenue - 1m+ Contribution - positive year one WWW.TARSUS.COM 25
acquisitions WWW.TARSUS.COM WWW.TARSUS.COM 26
acquisitions Key component of QTP2 strategy Markets in transition in key geographies Manage risk by stepped acquisition process Add value with organic growth including launches Disciplined financial approach Track record of adding value WWW.TARSUS.COM 27
Mexico Expo Restaurantes Annual event in June in Mexico City Focus on food, beverages and equipment for restaurant industry June event up 19% on 2017 Integrated into EJK JV WWW.TARSUS.COM 28
Connect etourism Purchased by Connect Annual event held in San Francisco in October Focussed on travel industry marketing professionals Founded in 2000 Integration into Connect going well WWW.TARSUS.COM 29
china - siuf Purchase of further 25% - total stake now 75% New Tarsus appointed General Manager in place Strategy to buy in joint venture minority interests WWW.TARSUS.COM 30
outlook WWW.TARSUS.COM WWW.TARSUS.COM 31
outlook Full year bookings tracking up 10% like-for-like Heavily second half weighted H2 busy with replication / launch activity Encouraging outlook for full year WWW.TARSUS.COM 32
summary WWW.TARSUS.COM WWW.TARSUS.COM 33
summary Strong operational and financial results Good strategic progress - launch programme delivering Encouraging outlook for full year WWW.TARSUS.COM 34
q&a WWW.TARSUS.COM WWW.TARSUS.COM 35
glossary ADJUSTED PROFIT BEFORE TAX: Calculated using profit before tax adjusted for exceptional items, share option charges / credits, amortisation charges, impairment of intangibles, profit / loss on disposal of intangibles and tangible fixed assets and unwinding of discount. ADJUSTED EPS: Calculated using profit after tax attributable to equity shareholders adjusted for exceptional items, share option charges / credits, amortisation charges, impairment of intangibles, profit / loss on disposal of intangibles and tangible fixed assets and unwinding discount. LIKE-FOR-LIKE: Calculated using constant exchange rates adjusted for biennial events, excluding acquisitions impacting for the first time in 2018 and nonrecurring products and items. GEARING: Calculated using net debt divided by EBITDA average of the previous two years, including acquisitions as if they were owned throughout the 24 month period. EBITDA: Calculated using adjusted profit before tax before depreciation charge. WWW.TARSUS.COM 36
thank you WWW.TARSUS.COM 37