ITE Group PLC: Interim results six months to 31 March 2007 - - PowerPoint PPT Presentation

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ite group plc interim results six months to 31 march 2007
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ITE Group PLC: Interim results six months to 31 March 2007 - - PowerPoint PPT Presentation

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ITE Group PLC: Interim results six months to 31 March 2007 Highlights Highlights Financials E Finan cials Exhi hibiti bition ons Secto s Sectors Reg s Regions T s Tradin ing U g Update Fut te Future

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SLIDE 1
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Highlights – Six months to 31 March 2007

  • Revenue
  • up 14% on a like for like basis
  • Headline profit before tax
  • up 30% on a like for like basis
  • Interim dividend increased to 1.3p per share
  • up 30%
  • Continuing strong exhibitions demand in Russia and CIS
  • ITE agrees terms of new Almaty long term agreement to 2017
  • ‘Super’ Mosbuild/Mosbuild+ in April of 85,000m²
  • up 25%
  • Rolling share buyback programme
  • CEO search progressing well
  • Forward sales for 2007 up in excess of 15% (on like for like basis)

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Highlights Highlights Finan Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 3

Financial Highlights – Six months to 31 March 2007

31% 30%

  • Tax rate

£14.9m 1.0p £3.7m £0.4m £3.3m 38% £26.2m 2006 2006 £0.6m

  • Net interest receipts

Up 29% like for like basis £5.0m

  • Operating profit pre amortisation

Strong cash generation Up 30% on like for like basis Up 14% on like for like basis £37.4m 1.5p £5.5m 38% £31.3m 2007 2007

  • Net cash
  • Headline diluted EPS
  • Headline profit before tax
  • Gross profit margins
  • Revenue

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Highlights Highlights Fina Financials ncials Exhi Exhibi biti tions S

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 4

Summary Profit & Loss Account

0.1 0.1 Other operating income (0.1)

  • Contribution from associates

(6.7) (7.2) Net administrative expense (before amortisation) 1.0p 1.3p Interim dividend per share 1.0p 1.5p Diluted Headline EPS 3.7 3.7 5.5 5.5 He Headline profit before adline profit before ta tax (0.2) (0.3) Other finance income / costs 0.6 0.8 Net interest receipts 3.3 3.3 5.0 5.0 Operating profit (before Operating profit (before am amor

  • rtisation)

tisation) 9.9 12.0 Gross Profit 26. 26.2 31. 31.3 Rev Revenue nue 31 Ma 31 Mar 20 2006 06 Una Unaudited £’ £’m 31 Ma 31 Mar 20 2007 07 Unaud Unaudited £’m £’m

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Highlights Highlights Finan Financials cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 5

Consolidated Balance Sheet

2.4 1.6 4.0 30 30.1 1.3 2.2 3.5 40 40.3 NON NON CURRE CURRENT T LIABILITIES LIABILITIES

  • Provisions
  • Deferred tax

NE NET ASSETS T ASSETS 55.8 55.8 67.7 67.7 CURR RRENT LI ENT LIABILITE ABILITES

  • Deferred revenue & creditors

29.3 14.9 44.2 27.0 37.4 64.4 CURR RRENT AS ENT ASSETS TS

  • Debtors due within 1 year
  • Cash

32.8 7.5 1.2 1.0 3.2 45.7 34.4 7.3 1.4 1.4 2.6 47.1 NON NON C CURR RRENT T ASSETS

  • Goodwill
  • Intangible assets
  • Tangible assets
  • Associates & investments
  • Venue advances and loans

31 Ma 31 Mar 20 2006 06 Una Unaudited £’ £’m 31 Ma 31 Mar 20 2007 07 Una Unaudited £‘ £‘m

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Highlights Highlights Finan Financials cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

  • £40.7m
  • £26.5m
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SLIDE 6

Cash Flow

1.1 1.7 Issue of shares/ESOT 2.0 16.0 Net increase in cash (1.1)

  • Acquisitions

(4.6) 0.9 (6.3) 14.3 Dividends Paid (6.8) (0.7) Net loans – venue & other (0.2) (0.4) Capital expenditure 13. 13.6 21. 21.7 ‘Free ‘Free C Cash sh Flow’ Flow’ (4.4) (3.3) Taxation 0.4 0.6 Net interest + dividend receipts 17.6 24.4 Net cash flow from operations 31 Ma 31 Mar 20 2006 06 Una Unaudited £’ £’m 31 Ma 31 Mar 20 2007 07 Una Unaudited £‘ £‘m

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Highlights Highlights Finan Financials cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 7

Currency Exposure

= 61% £11m £50m 14% £11.0m Other 1.80 1.90 £4m 22% £18.4m US Dollar 1.47 1.48 £35m 64% £53.0m Euro

  • Av. Sales

Rate 2006

  • Av. Sales

Rate 2007 International Sales % of Revenue 2006 sales 2006 2006 c currenc ncy & sa y & sales

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Highlights Highlights Finan Financials cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

UK Forward UK Monetary Assets Exchange Rates $3.0m 1.96 1.88 US Dollar

  • €6m at 1.43
  • €24m at 1.45
  • €12m at 1.48

€42m €(0.8)m 1.47 1.48 Euro Cover 31 Mar’07 31 Mar’07 30 Sept’06 ITE ITE’s monetary ass etary assets ts

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SLIDE 8

Sales & Yields 7

Highlights Finan Highlights Financials cials Exhibitions Exhibitions Secto Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re

ITE Group PLC: Interim results – six months to 31 March 2007

11.7 0.1 1.4 0.6 9.6 Gros Gross s Pro Profit it £m £m £206m² 25.3 123.1 First half 2006*

  • Disproportionate effect on H1 yield
  • H2 yield up on a like for like basis

* excluding Publishing activity £186m2 30.4 163.1 First half 2007* 0.4 2.3 Acquisitions 3.4 27.8 Core event growth 1.3 9.9 Timing differences Average Average Yield Yield £m £m² Rev Revenue nue £m £m Square Square Metres Metres ‘000 ‘000

£9 £4 £7 £20 Change AgriHort growth Timing Other

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SLIDE 9

Key exhibitions (May 2007) 8

Highlights Finan Highlights Financials cials Exhibitions Exhibitions Secto Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re

ITE Group PLC: Interim results – six months to 31 March 2007

15,600 June Moscow Moscow International Oil & Gas 2

Spr only 4,900

Sept Sept 9,000 9,600

Spr only 18,000

Sept 18,600 40,000 45,000 85,000 2007 m² sold 19,600 Moscow Moscow International Travel & Tourism (MITT) 3

70%

Top 10 events contribution to gross profit * 2005 figure / bi-ennial event 10,200 St Petersburg Baltic Building Week 8 9,000 Moscow Expoelectronica 7 7,900 Kazakhstan Kazakhstan Oil & Gas exhibition 6 14,900 Kazakhstan Kazbuild (Spring & Autumn) 10 17,700 Moscow Moscow International Motor Show 9 33,000 U.K. MODA UK (Spring & Autum) 5 22,200 Moscow World Food Moscow 4 34,700 33,500 68,200 MosBuild MosBuild+ 1 2006 m² sold Location Event Rank

*

Moscow

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SLIDE 10

Pro-forma Revenue by Sector and Region 2007 (2006) 9

Highlights Finan Highlights Financials Ex cials Exhibition hibitions s Secto Sectors Regio egions ns Tradi Trading Updat Update F Futur ture

ITE Group PLC: Interim results – six months to 31 March 2007

Construction & Interiors 36% (35%) Oil & Gas 15% (10%) Travel & Leisure 10% (11% ) F

  • d

& D r i n k 1 1 % ( 1 2 % ) Other 6% (7%) Technology & Telecoms 5% (6%) Fashion 7% (8%) Motor & Transport 6% (6%) Russia 66% (61%) Western Europe 8% (10%) South & Eastern Europe 8% (10%)

Rest of the World 1% (1%)

Pharmaceutical & Healthcare 4% (5%) Central Asia 17% (18%)

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SLIDE 11

Russia: Moscow, St Petersburg

2007 2007

  • Early delivery of Pavilion 8 at Expocentr assists Mosbuild
  • Strong April trading:
  • Mosbuild 40,000m²+
  • Mosbuild+ 45,000m²+
  • 8% price increase secured at Mosbuild+
  • Expoelectronica up on yield and profits
  • Moscow Boats up 10% + venue saving
  • Moscow Security up 10%
  • Enhanced prospects for MIOGE / Worldfood

2008 2008

  • Nuremburg date line clash with Mosbuild in 2008
  • Mosbuild & Mosbuild+ net 5% price increases for 2008
  • No increase of venue cost at Expocentr for 2008; 3% increase Crocus
  • TransRussia and MIPS re-location to Expocentr
  • St. Petersburg – flat trading

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Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

Up 25% 11.5 46 2007 Revenue £m m² ‘000s 10.5 42 2006

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SLIDE 12

Central Asia & Caucasus: Kazakhstan, Uzbekistan, Azerbaijan

Kazakhstan Kazakhstan

  • New 10 year deal signed to 2017 – exclusivity rights / agreed prices
  • Growth of Kazbuild Spring (20%) & KIOGE (20%)
  • Good April result for Travel Show (+50%)
  • Small new pavilion for Autumn 2007

Azerbaijan / Azerbaijan / Geor Georgia gia

  • BakuBuild +30%
  • Autoshow +45%
  • Venue space in Azerbaijan – an ongoing issue

Uzbeki bekistan an

  • Uzbuild, Automotor, Worldfood all good growth from low base
  • New pavilion prospect
  • Oil & Gas growth 10%+

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Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

7.8 36.1 2007 Revenue £m m² ‘000s 6.1 27.2 2006

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SLIDE 13

Eastern & Southern Europe: Ukraine, Turkey

Ukraine Ukraine

  • Public Health +23%
  • AgriHort sells pavilion 3 – low yields
  • UITT +10%
  • Kievbuild consolidates

Turkey rkey

  • EUF - improved performance
  • ITF still struggling to replace Texgate profits
  • Ceyda Erem resigned from ITE Board

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Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

4.6 5.9 58.9 2007 Like for like Revenue £m Revenue £m m² ‘000s 4.4 4.4 37.5 2006

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SLIDE 14

Western Europe & Rest of the World

Uni United K King ngdo dom:

  • 100% owned from October 2006
  • MODA UK – status quo in a challenging environment
  • Footwear UK – 10% growth at lower yield
  • London Footwear – April cancellation
  • RAS Publishing Group – steady contribution

Euro Europe

  • WPC Madrid, Spain 2008 – improved prospects

R. R.O.W

  • Algeria: - Successful ALOGE – re-tendering for 2008

Mining & Construction prospects

  • China – 1,500m² West China Build launch

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Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

4.1 19.5 2007 Revenue £m m² ‘000s 4.1 17.8 2006

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SLIDE 15

Trading Update 14

Sales Sales

  • £85.8m of sales booked for full year 11May

(£69.5m of sales booked at same time last year)

  • 90% of consensus market expectations for 2006/07 now booked

(90% this time last year)

  • Like for like forward bookings for 2006/07 are up 15%+ compared with same time last year

Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 16

Outlook – Playing to our strengths

  • Core market dynamics strong - economies & exhibition business
  • Quality venue space increasing – Moscow, Kyiv, Almaty
  • Growth prospects strong
  • Organic growth remains priority – Grow existing events
  • New launches / new themes
  • New markets
  • Manage / develop venue relationships & opportunities
  • Bolt on acquisitions to supplement organic growth
  • Rolling share buyback programme from free cash flow
  • CEO search progressing well – preparation for seamless transition
  • Confident about prospects for full year

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ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 17

Appendices

I Shareholder structure II Office Infrastructure III Management Team IV Venue prepayments and advances

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Ap Appen pendices ices

ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 18

Shareholder Structure at 30 April 2007

4% 9% 94% 100% 11.3% 11.2% 10.5% 7.2% 6.7% 5.2% 3.6% 3.5% 3.2% 3.2% 3.1% 3.1% 2.5% 2.5% 2.0% 0.1% 21.1% % 10.5m 23.6m 0.9m Options in the money: Management including options in the money & ESOT Free float Average daily trading volume (6 months) 260.9 Total Shares in issue 29.6 29.3 27.3 18.9 17.6 13.5 9.3 9.2 8.4 8.2 8.0 8.0 6.5 6.4 5.1 0.3 55.3

  • Barclays Global Investor
  • Black Rock
  • Schroders
  • Aberforth
  • Ceyda Erem
  • Fidelity
  • Framlington
  • Threadneedle Investments
  • Legal and General
  • Standard Life
  • Edward Strachan
  • Old Mutual Asset Managers
  • Globeflex Capital
  • JP Morgan
  • ESOT
  • Other Management
  • Other Institutions and individuals
  • No. of Shares

(millions)

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Appendix Appendix I

ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 19

18 ITE’s Local Office Infrastructure Strength

Appendix Appendix II

ITE Group PLC: Interim results – six months to 31 March 2007

17 37 Azerbaijan/Georgia Baku, Tbilisi 5 21 Africa/China/Iran Other 146 146 647 647 TOTAL TOTAL 14 61 Turkey ITF (50% owned)

  • 91

UK London 6 36 UK North England 28 102 Kazakhstan Almaty, Astana, Atyrau 23 69 Ukraine Kyiv 14 61 Russia St Petersburg 9 28 Turkey Istanbul

  • 28

Germany Hamburg 14 44 Uzbekistan/Tajikstan/Kyrgystan Tashkent, Bishkek 30 130 Russia Moscow 2006 2006 Events Events Staff Staff Cou Country try Office Office

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SLIDE 20

Management Team

42, joined ITE in 2005, formerly Managing Director for Dell distribution in Russia, formerly IBM Management General Director Alexander Shtalenkov 42, joined ITE in 2000. Based in Moscow, manages sales and

  • perations for Moscow/Ukraine

Sales & Operations Director Moscow/Ukraine Stephen Keen 42, managed operations for ITE in Russia, the CIS and the Caspian region since 1992 CIS Regional Director Edward Strachan ACA, 48, Joined ITE in 2003, formerly Finance Director at Earls Court Olympia Group and Air Miles International Group Finance Director Russell Taylor ACA, 42, joined ITE in 1998 as Deputy Finance Director, became Finance Director in May 2000 and CEO in Oct 2002 CEO Ian Tomkins 60, Non Executive Chairman since May 2002, former Board member at Enterprise Oil; Chairman of Sondex PLC and a number

  • f other non executive posts.

Chairman Iain Paterson

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Appendix Appendix III

ITE Group PLC: Interim results – six months to 31 March 2007

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SLIDE 21

Venue Prepayments & Advances

31March 2007 2.6 2.6 TOTAL to 2015 2010 2012 2011 2014 2017 Agreement Dates n/a 2008 2008 2012 2011 2012 2017 Prices Agreed to 0.2 0.1 Bulgaria Net reduction since 30 September 2006 £2.0m Other Loans 2.4 2.5

  • 0.6

0.2 1.1 0.5 0.4

  • 0.3

0.2 0.5 1.1 Moscow – Crocus Moscow – Expocentr

  • St. Petersburg

Uzbekistan Kyiv Almaty Venue Related > 1 year £m < 1 year £m

Appendix I Appendix IV

ITE Group PLC: Interim results – six months to 31 March 2007 20