preliminary results ite group plc preliminary results september- with… · financial results ite...

Preliminary Results

Year ended 30 September

2011

ITE Group Plc

Highlights for the year to 30 September 2011

2

Strong organic growth : revenue + 18% L4L

Financial Results 2011 2010

Revenue £155.5m £113.5m

Headline profit before tax £51.4m £36.6m

Dividend 6.1p 5.7p

Cash at 30 September £5.5m £23.0m

£50m - business and brand acquisitions in Russia & Turkey

Strong working capital inflow in year: + £65m

£42.2m (+15%) L4L

L4L forward bookings for 2012: + 8%

Progressive dividend

ITE Group plc – Preliminary Results for the year ended 30 September

2011

2011 FINANCIAL RESULTS

3

01

2011 2010

Audited Audited

Revenue £155.5m £113.5m

Gross profit margin 48% 49%

Headline profit before tax £51.4m £36.6m

Tax rate 21% 23%

Headline diluted EPS 16.6p 11.6p

Dividend per share 6.1p 5.7p

Financial Highlights for the year

to 30 September 2011

4

Financial Results

Net trading + £ 19m

Acquisitions + £ 16m

Biennial + £ 7m


2011

Lower underlying

rates & planning

Biennial + 1.5%

Acquisition effect - 1.0%

Core trading -1.5%

2010 to 2011 Headline PBT Bridge

5

Financial Results


2011

36.6

4.7

5.6

7.6 (3.1)

51.4

0

10

20

30

40

50

60

2010 Headline PBT Biennial effect Acquisitions net of overheads Growth from core business Overheads, Financing & Fx 2011 Headline PBT

He

ad

lin

e P

BT

£M

Cash Flow - 2010 to 2011 Cash Bridge

6

127% of

Headline PBT

MVK £27.4m

Krasnodar £4.6m

YAPI £12.5m

Financial Results


2011

23.0

65.1

(3.5)

(11.6)

(6.9)

(46.5)

(14.1)

5.5

0

10

20

30

40

50

60

70

80

90

2010 Cashflow from Operations

Acquisitions less cash acquired

Venue Prepayments Tax Dividends Other 2011

Ca

sh

flo

w -

£M

Sales and Yield Analysis

7

Metres RevenueGross

ProfitYield

000s £m £m Per m²

2010Results from Events 491 112 55

Non annual 2010 (57) (5) (1)

2010 Recurring Events 434 107 54 £247

2011

Acquisitions 90 16 7 £178

Net growth 63 19 8 £302

Recurring Events 587 142 69 £242

2011Non annual 2011 57 12 6

Results from Events 644 154 75

£253 ex

acquisitions

Financial Results


2011

9,500

1,300

3,300

3,700

6,600

2,200

4,100

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1. Mosbuild

2. Mitt

3. WFM

4. Moda

5. Kioge

6. Aquatherm Kiev

7. Transrussia

8. Interstroyexpo

9. Uitt

10. Expoelectronica

2010 2011 shortfall relative to 2008 2010 2011 shortfall relative to 2008

100% +

Extent of Recovery

8

2008 v 2011 Net Sqm - Top 10 Events

Financial Results


2011

100% +

Currency and hedging

9

Currency

of sale

2011 Average sales rate

2011 2010

EUR 61% 1.15 1.15

GBP 8% 1.0 1.0

RUB 19% 47 47

USD 4% 1.61 1.56

Other 8%

Euro revenues decrease- better matching of revenue + costs

Ruble revenues increase - MVK + Krasnodar events

Forward cover – 2012- 2014 - €108m @ €1.17: £1

72% in 2010

5% in 2010

Financial Results


2011

0

10

20

30

40

50

60

70

80

90

100

FY2008 FY2009 FY2010 FY2011 FY2012

Trading update – 2012 contracted revenue

10

£m Sales booking

%

% Booked of

consensus

revenues at

time of

preliminary

announcement

£56m£70m

£54m

£93m£74m

*vs. market expectation of £165.4m

*

Financial Results


2011

54% 56% 52% 56% 56%

DIVISIONAL ANALYSIS

11

01 02

Business Review

12

SUMMARY – Revenues for the year ended 30 September

2011

£m

2010

£m

%

change

%

Like-for-Like

change

Russia 105.6 66.1 +60% +25%

Central Asia & Caucasus 21.9 19.6 +11% +11%

Eastern & Southern Europe 17.9 15.3 +17% +11%

UK & Western Europe 9.0 8.2 +9% +9%

Rest of World 1.1 4.3 -75% -66%

Total 155.5 113.5 +37% +18%

01 Divisional Analysis

LNG16 £2.9m

(Algeria)


2011

Russia

13

2011

Good economic recovery throughout Russia

Moscow strong + 26% L4L growth │regions following

Sector & geography expansion through MVK & Krasnodar

01

Outlook

Opportunities for regional synergies

Moscow venue situation │space constraints

Novosibirsk – new venue January 2012

2011 2010

m² ‘000 345 206

Revenue £105.6m £66.1m

Mosbuild 75% booked

Divisional Analysis


2011

Central Asia & Caucasus

14

2011

Kazakhstan – markets steadily improving

KIOGE – Purchase of Kazenergy Conference in Astana

Azerbaijan good growth in new venue: revenues + 39%

01

Outlook

Stable conditions for growth

Azerbaijan - more new launches

2011 2010

m² ‘000 67 60


Divisional Analysis


2011

Eastern and Southern Europe

15

2011

Ukraine & Turkey returning to growth

Acquisition of YAPI

Autoexpo acquisition gives sector expansion

01

Outlook

Further expansion opportunities in both countries

YAPI growth potential + ITE synergies

Integration of Ukrainian Autoexpo acquisition

2011 2010

m² ‘000 186 179


Divisional Analysis


2011

Good trading conditions

Extension into premium market - Scoop

Tough trading conditions

UK / Rest of World

16

2011

01

Outlook2011 2010

m² ‘000 47 47


MMMM │DelhiBuild

UK

INDIA

Further brand extension opportunities

UK

INDIA

Venue space restricting industry

Small acquisition opportunities

Divisional Analysis


2011

STRATEGY

17

01 02 03

Strategic Priorities

18

To strengthen and build on existing market leadership

To grow and improve portfolio of international brands

To invest in management development

01 02

To expand the business model ‘in market’ and ‘new market’

Strategy


2011

Expanding the Business Model

19

Expanding

Markets

New Regional

Brands

New International Brands

Expanding Sectors

Existing ITE

Markets & Sectors

Rosupack, Polygraphinter

Yugagro, Paperex

Woodex, Mebel/IMOB

India

Siberia

Krasnodar

‘Ge

o-c

lon

ing’

New launches

+ international sales + investment

UKChildrenswear,

Lingerie,

Designerwear

TurkeyFood, Construction,

Travel, Machinery,

Furnishings

UkraineMotors, Oil,

Logistics, HVAC

MoscowPackaging, Printing,

Furniture, Wood, Dairy

01 02 Strategy


2011

Future Developments

20

Russia regional strategy- ‘regional cloning’

Developing international sales for new sectors

Maximising YAPI potential

Talent development programme

New outbound offices in Asia

01 02 Strategy


2011

21

Acquisitions

Autoexpo

Events

YAPI

Consideration €32m

EBIT (annualised) €4m

Events M²

Construction Istanbul 35,000

Construction Izmir 6,000

Construction Ankara 4,000

M²

Motors 12,000

Travel 2,300

Commercial Vehicles 7,000

Construction 2,100

Oil & Gas/Logistics

(Small events)

4,000

01 02 Strategy


2011

Consideration €4.5m

EBIT (annualised) €0.9m

22

Acquisitions

Krasnodar

EventsM²

Construction Mar 10,000

Agriculture Nov 20,000

Furniture/Woodworking Apr 7,000

Food - wine Apr 2,000

Tourism Oct 2,500

MVK



Events M²

Furniture May 20,000

Packaging June 10,000

Printing* Oct 8,000

Woodex* Nov 7,000

PCV (pumps

etc) Oct 4,000

Analytica April 3,000

*Every 2 years only

01 02 Strategy


2011



Date Consideration Annual Revenue Detail

FY 2008 € 23m € 8m Novosibirsk Interstroyexpo

FY 2009 € 9m € 4m India Emitt- (Turkey)

FY 2010 € 16m € 10m ITF- (Turkey)

Global Expo- (Moscow)

Aquatherm-(Kiev)

Dec 2010 € 33m € 15m MVK- (Moscow)

March 2011 € 10m € 6m Krasnodar- (Southern Russia)

July 2011 € 32m € 8m YAPI- (Turkey)

Nov 2011 € 4m € 3m Autoexpo- (Ukraine)

Total €127m €54m

23

Sector expansion

in market

New market

Existing market

& sector

Strategy Execution 2008 - 2011

01 02 Strategy

* For 100%


2011

GDP growth in ITE’s markets

24

*Source: IMF World Economic outlook database, Sep 2011

2012* 2013*

Russia 4% 4%

Kazakhstan 6% 6%

Azerbaijan 7% 2%

Uzbekistan 7% 7%

Ukraine 5% 5%

Turkey 2% 3%

UK 2% 2%

India 8% 8%

01 02 Strategy


2011

A Good Record

25

Year ended 30 September

Growth

‘07 to ‘11

2007 2008 2009 2010 2011

Volume sales (‘000

sqm)455 500 423 491 644 42%

Revenue £’m 99 108 117 114 156 58%

PBT (Headline)

£’m35.3 37 45.8 36.6 51.4 46%

Headline Diluted

EPS (pence)9.4 10.1 14.2 11.6 16.6 76%

01 02 Strategy


2011

+ 15%

compound

Outlook

26

Good economic growth in core markets │L4L + 8%

Focus on integration of new businesses

Strong balance sheet & cash flow

Opportunities for more ‘bolt-on’ expansions

01 02 Strategy


2011

Thank you

Q & A

28

APPENDICES

29

01 02 03 04

Shareholder structure at 27 October 2011

30

%No. of Shares

(millions)

BlackrockSchrodersScottish WidowsStandard LifeThreadneedle InvestmentsOld MutualLegal and GeneralState Street SecuritiesDirectors

ESOTOther Institutions and individuals

15.5%12.8%8.7%7.6%6.7%6.5%4.9%2.5%1.2%

3.2%30.4%

38.631.921.618.916.616.112.16.32.9

8.175.5

Total Shares in issue 100% 248.6

Options in the money: 0.2% 0.4m

Management including options in the money 1.4%

Free float 95.6%

Average daily trading volume (6 months) 0.4m

01 02 03 Appendices


2011

Key exhibitions (in 2011 gross profit order)

31

Rank Event Location 2011

m² sold

2010

m² sold

2009

m² sold

1 MosBuild & MosBuild+ Moscow 77,600 62,700 74,900

2 MIOGE Moscow 22,800 17,300

3 Moscow International Travel & Tourism (MITT) Moscow 21,000 19,500 20,200

4 World Food Moscow Moscow 22,800 21,000 16,300

5 MODA UK Birmingham 35,600 34,100 29,200

6 Kazakhstan Oil & Gas / conference Almaty 7,800 7,900 10,300

7 AquaTherm Kyiv 15,300 14,200 14,800*

8 Transrussia Moscow 8,700 7,400 7,300

9 Rosupack Moscow 11,500 9,459* 8,173*

10 Euroexpomebel Moscow 14,200 12,416* 11,800*

% of Gross Profit earned by Top 10 events

* not under ITE ownership

61%

01 02 03 Appendices


2011

Consolidated Balance Sheet

32

30-Sep-11

Audited £‘m30-Sep-10

Audited £‘m

Non Current Assets

•Goodwill & Intangibles 129.6 79.4

•Other non-current assets 8.8 9.8

138.4 89.2

Current Assets

• Debtors due within 1 year 52.8 39.9

• Cash (net of O/D) 5.5 23.0

58.3 62.9

Creditors

• Deferred Revenue & Creditors 97.2 70.5

• Deferred Consideration 4.1 1.8

• Deferred Tax 13.1 5.9

• Provisions 1.4 1.3

115.8 79.5

Net Assets 80.9 72.6

£30.6m£44.4m

01 02 03 Appendices


2011

Venue prepayments and loans

33

Venue Location

Prepayments

30 September 2011

Theme

Protection

Rates

Agreed

Expocentr Moscow - 2013 2013

Crocus Moscow £0.3m - -

Lenexpo St Petersburg £0.3m 2012 2012

Atakent Almaty £1.8m 2017 2017

IEC Kiev £1.8m 2014 2014

Uzexpocentr Tashkent £0.2m 2011 2011

CNR

Azerbaijan

Istanbul

Baku

£5.1m

£0.6m

2014

2015

2014

2015

TOTAL £10.1m

01 02 03 Appendices


2011

Revenue by sector and region 2011 (2010)


2011 34

ITE Group Revenue by Region ITE Group Revenue by Sector

01 02 03 Appendices

Construction-39% (39%)

Oil & Gas- 13% (12%)

Food- 10% (10%)

Travel- 9% (12%)

Motor- 4% (5%)

Fashion- 5% (7%)

Other- 20% (15%)

Russia- 68% (58%)

Central Asia and Caucasus-14% (17%)

Eastern and Southern Europe- 11% (14%)

UK and Western Europe-6% (7%)

Rest of World- 1% (4%)

ITE world

35

Offices in these locations

Events held in this territory

01 02 03 Appendices

1. Azerbaijan

2. China

3. Germany

4. Great Britain

5. Holland

6. India

7. Kazakhstan

8. Kyrgyzstan

9. Poland

10. Russia

11. Turkey

12. Turkmenistan

13. UAE

14. Ukraine

15. Uzbekistan


2011

preliminary results ite group plc preliminary results september- with… · financial results ite...

Documents