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

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 re 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) 1

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Highlights Fina Financials ncials Exhi Exhibi biti tions S ons Sector ors R s Regi gion ons T s Tradin ing U g Upda date Fut te Future re Financial Highlights – Six months to 31 March 2007 2007 2007 2006 2006 • Revenue £31.3m £26.2m Up 14% on like for like basis • Gross profit margins 38% 38% • Operating profit pre amortisation £5.0m £3.3m Up 29% like for like basis • Net interest receipts £0.6m £0.4m • Headline profit before tax £5.5m £3.7m Up 30% on like for like basis • Tax rate 30% 31% • Headline diluted EPS 1.5p 1.0p • Net cash £37.4m £14.9m Strong cash generation 2

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Highlights Finan Financials cials Exhi hibiti bition ons Secto s Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Summary Profit & Loss Account 31 Mar 20 31 Ma 2007 07 31 Ma 31 Mar 20 2006 06 Unaudited Unaud Unaudited Una £’m £’m £’ £’m Revenue Rev nue 31.3 31. 26. 26.2 Gross Profit 12.0 9.9 Other operating income 0.1 0.1 Net administrative expense (before amortisation) (7.2) (6.7) Operating profit (before Operating profit (before am amor ortisation) tisation) 5.0 5.0 3.3 3.3 Contribution from associates - (0.1) Net interest receipts 0.8 0.6 Other finance income / costs (0.3) (0.2) He Headline profit before adline profit before ta tax 5.5 5.5 3.7 3.7 Diluted Headline EPS 1.5p 1.0p Interim dividend per share 1.3p 1.0p 3

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Finan Highlights Financials cials Exhi hibiti bition ons Secto s Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Consolidated Balance Sheet 31 Ma 31 Mar 20 2007 07 31 Ma 31 Mar 20 2006 06 Una Unaudited Unaudited Una £‘ £‘m £’m £’ NON C NON CURR RRENT T ASSETS • Goodwill 34.4 32.8 • Intangible assets 7.3 7.5 • Tangible assets 1.4 1.2 • Associates & investments 1.4 1.0 • Venue advances and loans 2.6 3.2 47.1 45.7 CURR RRENT AS ENT ASSETS TS • Debtors due within 1 year 27.0 29.3 • Cash 37.4 14.9 64.4 44.2 - £40.7m - £26.5m CURR RRENT LI ENT LIABILITE ABILITES • Deferred revenue & creditors 67.7 55.8 67.7 55.8 NON NON CURRE CURRENT T LIABILITIES LIABILITIES • Provisions 1.3 2.4 • Deferred tax 2.2 1.6 3.5 4.0 NE NET ASSETS T ASSETS 40 40.3 30 30.1 4

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Highlights Finan Financials cials Exhi hibiti bition ons Secto s Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Cash Flow 31 Mar 20 31 Ma 2007 07 31 Ma 31 Mar 20 2006 06 Unaudited Una Una Unaudited £‘ £‘m £’ £’m Net cash flow from operations 24.4 17.6 Net interest + dividend receipts 0.6 0.4 Taxation (3.3) (4.4) ‘Free C ‘Free Cash sh Flow’ Flow’ 21.7 21. 13.6 13. Capital expenditure (0.4) (0.2) Net loans – venue & other (0.7) (6.8) Acquisitions - (1.1) Dividends Paid (6.3) (4.6) 14.3 0.9 Issue of shares/ESOT 1.7 1.1 Net increase in cash 16.0 2.0 5

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Highlights Finan Financials cials Exhi hibiti bition ons Secto s Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Currency Exposure 2006 c 2006 currenc ncy & sa y & sales % of International Av. Sales Av. Sales 2006 sales Revenue Sales Rate 2007 Rate 2006 Euro £53.0m 64% £35m 1.48 1.47 US Dollar £18.4m 22% £4m 1.90 1.80 Other £11.0m 14% £11m £50m = 61% ITE ITE’s monetary ass etary assets ts Exchange Rates UK Monetary Assets UK Forward 30 Sept’06 31 Mar’07 31 Mar’07 Cover Euro 1.48 1.47 €(0.8)m €42m - €6m at 1.43 - €24m at 1.45 - €12m at 1.48 US Dollar 1.88 1.96 $3.0m 6

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Finan Highlights Financials cials Exhibitions Exhibitions Secto Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Sales & Yields Square Square Gros Gross s Average Average Metres Metres Revenue Rev nue Profit Pro it Yield Yield ‘000 ‘000 £m £m £m £m £m² £m First half 2006* 123.1 25.3 9.6 £206m² Timing differences 9.9 1.3 0.6 Core event growth 27.8 3.4 1.4 Acquisitions 2.3 0.4 0.1 First half 2007* 163.1 30.4 11.7 £186m2 • Disproportionate effect on H 1 yield Change AgriHort growth £9 • H 2 yield up on a like for like basis Timing £4 Other £7 £20 * excluding Publishing activity 7

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Finan Highlights Financials cials Exhibitions Exhibitions Secto Sectors Reg s Regions T s Tradin ing U g Update Fut te Future re Key exhibitions (May 2007) Rank Event 2007 2006 Location m² sold m² sold 1 MosBuild 40,000 34,700 Moscow MosBuild+ 45,000 33,500 85,000 68,200 * 2 Moscow International Oil & Gas Moscow June 15,600 3 Moscow International Travel & Tourism (MITT) Moscow 18,600 19,600 4 World Food Moscow Moscow Sept 22,200 5 MODA UK (Spring & Autum) U.K. Spr only 18,000 33,000 6 Kazakhstan Oil & Gas exhibition Kazakhstan 9,600 7,900 7 Expoelectronica Moscow 9,000 9,000 8 Baltic Building Week St Petersburg Sept 10,200 9 Moscow International Motor Show Moscow Sept 17,700 10 Kazbuild (Spring & Autumn) Kazakhstan Spr only 4,900 14,900 Top 10 events contribution to gross profit 70% * 2005 figure / bi-ennial event 8

ITE Group PLC: Interim results – six months to 31 March 2007 Highlights Finan Highlights Financials Ex cials Exhibition hibitions s Secto Sectors Regio egions ns Tradi Trading Updat Update F Futur ture Pro-forma Revenue by Sector and Region 2007 (2006) Construction & Interiors 36% (35%) Other Oil & Gas 6% (7%) 15% (10%) Pharmaceutical & Healthcare 4% (5%) Travel & Leisure 10% (11% ) Fashion 7% (8%) Technology & Motor F o o d & D r i n k Telecoms & Transport 6% (6%) 1 1 % ( 1 2 % ) 5% (6%) Russia 66% (61%) Rest of the World 1% (1%) South & Eastern Europe 8% (10%) Western Europe 8% (10%) Central Asia 17% (18%) 9

ITE Group PLC: Interim results – six months to 31 March 2007 Hig Highlig lights Finan hts Financials E cials Exhi hibiti bition ons Secto s Sectors Reg s Regions s Tradi Trading Updat Update Future Futu Russia: Moscow, St Petersburg 2007 2007 • Early delivery of Pavilion 8 at Expocentr assists Mosbuild • Strong April trading: - Mosbuild 40,000m²+ Up 25% - 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 2007 2006 • Mosbuild & Mosbuild+ net 5% price increases for 2008 • No increase of venue cost at Expocentr for 2008; 3% increase Crocus m² ‘000s 46 42 • TransRussia and MIPS re-location to Expocentr Revenue £m 11.5 10.5 • St. Petersburg – flat trading 10

ITE Group PLC: Interim results – six months to 31 March 2007 Highlig Hig lights Finan hts Financials E cials Exhi hibiti bition ons Secto s Sectors Reg s Regions s Tradi Trading Updat Update Future Futu 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 / Geor Azerbaijan / Georgia gia • BakuBuild +30% • Autoshow +45% • Venue space in Azerbaijan – an ongoing issue Uzbeki bekistan an 2007 2006 • Uzbuild, Automotor, Worldfood all good growth from low base m² ‘000s 36.1 27.2 • New pavilion prospect • Oil & Gas growth 10%+ Revenue £m 7.8 6.1 11