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Quickening the Pace Trading update – January 2016

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Page 1: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Quickening the PaceTrading update – January 2016

Page 2: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Agenda ■ Operational review ■ Strategic update ■ Outlook ■ Summary ■ Q&A

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Page 3: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

OPERATIONAL REVIEW

Page 4: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Operational review ■ Record financial results ■ Like for like revenue growth at 10% ■ Major events performed well ■ Good progress made in portfolio development

■ 2 strategic acquisitions

■ 15 replications

■ Disposal of French portfolio ■ Balance sheet position strong

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Page 5: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Operational review- EMERGING MARKETSDubai airshow

■ Excellent performance

■ Strong revenue growth. Visitors up 9%

■ Good rebook for 2017 show

Turkey ■ Good performance across the portfolio with larger shows particularly strong

China ■ Hope revenues well ahead of 2014 ■ SIUF performed well ■ AAITF successfully transitioned to Shenzhen

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Page 6: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Operational review- EMERGING MARKETSMexico

■ Good performance from Expo Manufactura ■ GESS launch successful

Indonesia ■ Launch of GESS strong attendance ■ Successful launch of Big 5 JV ■ Investment in IIICE sales and marketing

AMB JV ■ Expands footprint in fast growth SE Asia markets

■ Successful events held in Cambodia, Myanmar and Philippines

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Page 7: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Operational review- USAOff-Price

■ Continued solid growth with revenue up 5%

Medical ■ Orlando and Las Vegas shows had record editions

■ SBS and PAINWeek performed well in their first editions

■ Business tracking in line with expectations overall

■ Growth initiatives gaining traction

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Page 8: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Operational review- EUROPE

■ Labelexpo record event with strong buyer growth

■ Labels publishing continues to impress ■ French business sold

3D Print ■ Aggressive launch program in 2015 ■ Integration completed ■ Consolidation into larger B2B events in 2016

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Page 9: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

FX exposure2016 PROFORMA REVENUE

USD TRY RMB IDR EUR GBP

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Page 10: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

NET DEBT ■ Net debt and cash flows in line with expectations

■ Includes payments for AMB and PAINWeek acquisitions and disposal of France

■ Gearing of 1.8 x EBITDA (historic 24 months basis)

■ Bank facilities increased to £75m and extended to 2020 with interest fixed

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Page 11: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

NET DEBT ■ Net debt and cash flows in line with expectations

■ Includes payments for AMB and PAINWeek acquisitions

■ Disposal of France adds [£3.0m] cash ■ Gearing of [1.7]x EBITDA (historic 24 months basis)

■ Bank facilities increased to £75m and extended to 2020

Strategic update

Page 12: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Quickening the Pace ■ Expanded opportunities for customers in growth markets

■ Increase Shareholder returns ■ Organic growth

■ Buyer attendance

■ Current portfolio

■ Replications ■ Markets in transition

■ Sectors

■ Geographies ■ Bolt on acquisitions

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Page 13: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Strategic progress ■ Geographical footprint completed – growth economies

■ Acquisitions of AMB and PAINWeek strengthening the portfolio

■ Disposal of French business ■ Replications supplementing organic growth ■ Strong growth in buyer attendance +9%

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Page 14: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

medical division ■ Footprint complete covering ‘4 Pillars’ of preventative medicine

■ Neurology, endocrinology, cardiovascular and oncology

■ PAINWeek fully integrated and performing very strongly

■ Major anti-aging shows and online educational products growing well

■ New initiatives driving further growth: ■ Central grant writing team ■ Cross working between business units ■ New Medical Technology event

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Page 15: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

organic replications gathering pace

E X P O M E X I C O 2 0 1 6

M o n t e r r e y

w w w . i n d u s t r i a l p r i n t e x p o . c o m

M é x i c o F e b r e r o 2 - 4

2015 Repeat 2016new

GESS ü ü -

3D/Additive ü ü ü

Cardio ü ü ü

OFFPRICE ü - -

Ind’lPrint ü ü ü

Zuchex ü - ü

Turkey ü ü -

Aerospace ü ü ü

AAITF ü - -

AMB - - ü

15 11 11

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Page 16: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Buyer programme ■ Key metric for Tarsus management at all levels ■ Growth rates

■ Industry Average - 3% ■ Tarsus Target - 5% ■ Achieved 2015 - 9%

■ Focused programme for every show ■ Implemented Salesforce ■ Best Practise project focussed on operations and marketing

■ Integration plan for acquisitions increases visitor focus

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Page 17: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

tarsus exchange

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Page 18: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Case study- LABELEXPO EUROPE

■ 1999 - 18,024 visitors ■ 2015 - 35,739 ■ Built extensive worldwide database of buyers ■ Global event programme drives visitors to big shows

■ Award winning marketing, design and PR team ■ Multi-lingual advertising campaign both print and online

■ Publications and websites addressing key industry topics

■ Credibility as leaders in the industry e.g. Labels Academy

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Page 19: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Labelexpo Brand ■ 1999 3 shows

■ 2015 10 shows

■ Strong global brand identity

■ Global customers leading expansion

■ Smaller shows driving visitor growth to bigger events

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Page 20: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Case study- ZUCHEX

■ 34,000 visitors +6% ■ 3,200 international visitors +12% ■ Rebranding campaign including modernising and internationalising the image/logo

■ Focus on event listings with partner websites ■ Partnerships with trade portals ■ Content led use of social media ■ Improved translation of promotional material ■ Cleansing of existing data and improved data capture

■ Increased international press activity ■ Earlier start to visitor campaign - clearer messaging to international audience

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Page 21: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

GESS brand ■ 2008 – 4,000 visitors

■ 2015 – 10,000 visitors

■ Launched 2008

■ Revenue growth at 22% CAGR

■ Strong brand identity

■ Global customers (Microsoft, Lego, etc)

■ Replication 2015 – Indonesia, Mexico

■ Continuing to explore replications

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Page 22: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

organic growth indonesiaExisting event

acquired in 2013New brands

added in 2014+2015Brand replications JV Launch

Visitors 2013 – 4,500 Visitors 2015 – 21,000

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Page 23: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Outlook

Page 24: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Outlook ■ Like for like bookings tracking +10% ■ “Quickening the pace” on track ■ Replication programme gaining momentum ■ 2017 rebook on larger events strong ■ Outlook for 2016 positive

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Page 25: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Summary ■ 2015 a record year ■ Good strategic progress ■ Portfolio reshape completed ■ Organic growth at 10%, replications delivered and complimentary acquisitions made

■ Buyer attendance +9% ■ Progressive dividend policy continues ■ Well positioned for 2016 with strong forward bookings

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Page 26: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Q&A

Page 27: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Appendix

Page 28: OPERATIONAL REVIEW · 2017-01-20 · Operational review - EMERGING MARKETS Dubai airshow Excellent performance Strong revenue growth. Visitors up 9% Good rebook for 2017 show Turkey

Macroeconomic assumptionsFX Rates for 2016

■ US$1.50 ■ Euro €1.35 ■ T Lira 4.30 ■ RMB 9.80 ■ IDR 20,500

GDP Growth rates ■ UK 2.6% ■ US 2.8% ■ Turkey 3.9% ■ China 7.0% ■ Indonesia 5.5%

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