1. No category

Quickening the Pace
Annual Results Presentation - March 2015
Agenda
■■ 2014 highlights
■■ Financial and operating review
■■ Strategy
■■ Outlook
■■ Summary
■■ Q&A
2
2014 Highlights
■■ Strong growth delivered
■■ like-for-like revenue 10%
■■ visitors 6%
■■ Good performances from major
events
■■ Quickening the Pace
■■ accelerating replications
■■ strategic acquisitions
■■ Balance sheet to deliver growth
■■ banking facilities extended to 2019
3
Financial and
operating review
Financial overview
2014
2013
2012
2014 v
2012
Group Revenue
£60.6m
£75.9m
£51.5m
+18%
Adjusted PBT
£17.0m
£24.2m
£14.8m
+15%
Adjusted Tax Rate
15%
15%
15%
Adjusted EPS
12.7p
20.0p
12.2p
Dividend
7.80p7.30p6.80p+15%
Net debt
£38.4m
5
£28.6m
£15.7m
+4%
revenue bridge
80
£75.9m
70
£6.0m
60
£4.6m
£60.6m
Organic Growth
2014 Revenue
£8.2m
£4.0m
50
40
£30.1m
30
20
10
2013 Revenue
2013 Biennials
2014 Biennials
Acquisitions
6
FX Impact
Financial results by geography –
Emerging markets
2014
2013
2012
2014 v 2012
Biennial revenue
£4.3m
£21.1m
£4.2m
2%
Annual revenue
£19.4m
£16.0m
£14.4m
35%
Total revenue
£23.7m
£37.1m
£18.6m
27%
Operating profit
£7.3m
£14.0m
£5.4m
35%
7
Emerging Markets –
operating review
TURKEY
■■ Like for like revenues up ahead of
expectations
■■ Large events all performed well
DUBAI
■■ GESS and MEBA both strong
CHINA
■■ Hope revenues well ahead
■■ AAITF relocated to Shenzhen successfully
■■ SIUF acquired and performed strongly
in its first edition
8
Emerging Markets –
operating review
MEXICO
■■ Plastimagen and Expo Manufactura ahead
of expectations
■■ Portfolio of six events
INDONESIA
■■ PTIA infrastructure events strong
■■ AAITF and Zuchex replications launched
■■ JV launched for Big 5 with DMG Events
for 2015
■■ Portfolio of eight events
9
Financial results by geography – usa
2014
2013
2012
2014 v 2012
Biennial revenue
£5.1m
-
£4.5m
13%
Annual revenue
£19.5m
£18.7m
£18.1m
8%
Total revenue
£24.6m
£18.7m
£22.6m
9%
Operating profit
£11.7m
£8.8m
£11.0m
6%
10
us – operating review
OFF-PRICE
■■ Solid revenue performance
■■ Venue extended in Las Vegas until 2019
LABELEXPO
■■ Group’s largest event in 2014.
■■ Strong revenue and visitor growth
■■ Record re-bookings for 2016 event
MEDICAL
■■ Orlando and Las Vegas shows both had
record revenues and attendance
■■ Education revenues below 2013 levels
■■ Successful MMI launch central to
repositioning towards mainstream market
■■ Cardio performed well in its first edition
11
Financial results by geography – europe
2014
2013
2012
2014 v 2012
Biennial revenue
-
£9.0m
-
-
Annual revenue
£12.3m
£11.1m
£10.3m
19%
Total revenue
£12.3m
£20.1m
£10.3m
19%
Operating profit
£1.2m
£4.8m
£1.1m
9%
12
europe –
operating review
ACQUISITION OF 3D PRINT
■■ Good first events in London and Paris
■■ Integration progressing well
■■ Aggressive launch plan for 2015
FRANCE
■■ Trading broadly flat on 2013
■■ 18% of French business agreed to be sold to
management
13
EXCEPTIONAL ITEMS
■■ Cost of corporate transactions (£2.3m)
■■ Reduction of estimate on
put/call options ■■ Net exceptional costs 14
£0.2m
(£2.1m)
net debt bridge
70
£2.2m
60
£8.2m
50
£38.4m
£23.8m
40
30
£3.4m
£18.2m
£28.6m
20
£9.6m
10
0
Dec ‘13
Share Proceeds
Acquisitions
and financing
Dividends
Interest & Tax
15
Exceptionals
Cashflow
from
operations
Dec ‘14
Financial review summary
■■ Strong financial performance despite
currency headwind
■■ Good underlying revenue growth
of 10% like-for-like
■■ Dividend up 7% to 7.8p
■■ Gearing of 1.7x net debt: EBITDA
(historic 24 months)
■■ Good cash flow conversion
■■ Total bank facilities £60m extended to
2019
16
Strategy update
Differentiating Tarsus
■■ Entrepreneurial management culture
■■ Markets in transition
■■ Geographic footprint - targeting
specific markets
■■ Quality of assets
18
Quickening
the pace
■■ Focus on accelerating EPS growth
■■ Driven by market-leading portfolio in
high growth economies
■■ Strong focus on organic growth
■■ Increase visitor/exhibitor numbers
■■ Replicate major brands across geographic
footprint
■■ Small strategic acquisitions
19
Quickening the pace
Target
2014
2013
5-10%pa
ü
ü
Increasing share of
revenues from US and
EM
75%
ü
ü
Visitor growth
5%
ü
ü
Accelerating EPS growth
20
2014 Strategic
progress
■■ Geographical footprint established
■■ Replications launched to drive
organic growth
■■ Acquisitions strengthening portfolio
■■ Management team expanded
21
aaitf
■■ 2014 show impacted due to venue
issues in Guangzhou
■■ Relocation of show to Shenzhen for
2015 onwards
■■ Good performance in recent 2015 event
■■ Focus on high growth areas:
■■ in-car electronics
■■ vehicle customization
■■ Brand extension into Indonesia (2014)
and Thailand (2015)
■■ Return to growth expected in 2016
22
aaitf
key event themes
electronics –
in car
entertainment
car
customisation
auto parts
23
equipment
Medical
■■ Year of transition in 2014
■■ Good progress with move into the
mainstream market
■■ MMI
■■ Cardio
■■ SBS
■■ Drive organic growth
■■ Replication opportunities in the US e.g. Cardio
regional events
■■ New education products
■■ Increased investment in organic growth
■■ Leverage databases acquired with Cardio and
SBS
■■ Look to complete ‘4 pillars’ of
preventative medicine with neurology
offering
24
strategy
moving into mainstream market
cardiovascular
cancer
endocrinology
neurology
cardio
south beach
symposium
Core product
of MMI
being
developed
4 pillars of preventative medicine
25
New replications
2014
2015
2016
AAITF
1
1
1
Cardio
-
3
-
3D Print Show
-
4
2
GESS
-
2
-
IPE
-
2
-
Zuchex
1
-
1
Labels
-
-
1
OFFPRICE
-
1
-
Total
2
13
5
26
Case study – 3D Print
3D Print
■■ Founded in 2012
■■ 2014 portfolio – London, Paris, New
York
■■ Visitors are engineers, product
designers, brands
■■ Consumer element
■■ Rapidly changing growth market – in
transition
■■ Synergies with the existing Tarsus
portfolio
■■ Vendor attracted by Tarsus’
entrepreneurial culture and ability to
work in partnership
28
3D Print with Tarsus
■■ Rapid expansion planned for 2015
■■ Four new shows
■■ Magazine launched
■■ Significant investment in the team
■■ Aiming to create the platform for the
3D/Additive Manufacturing industry
■■ Focus on B2B industrial verticals
29
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MADRID
MADRID
LONDON
BERLIN
PASADENA
BERLIN
BERLIN
Growth case study
– 3D Print NEW YORK
PARIS
MADRID
NEW YORK
NEW YORK
LONDON
LONDON
DUBAI
MADRID
MADRID
BERLIN
BERLIN
PASADENA
BERLIN
PASADENA
NEW YORK
NEW YORK
NEW YORK
LONDON
LONDON
PASADENA
PARIS
PARIS
PARIS
DUBAI
Outlook
outlook
■■ Outlook for 2015 is positive
■■ Strong start to year with shows so far
performing very well
■■ Like for like bookings tracking
+10% up – broad based
32
outlook –
US and Mexico
OFF-PRICE
■■ Expected to continue its solid growth
MEDICAL
■■ Large events tracking well
■■ First SBS event slightly ahead of
expectations
■■ Education business – work in progress
MEXICO
■■ EJ Krause JV continues to work well
■■ Manufactura in February performed well
■■ New events in 2015 - GESS and Industrial
Print
33
outlook –
Emerging Markets
TURKEY
■■ Bookings promising on larger shows
■■ First edition of Komatek following
acquisition on track
CHINA
■■ AAITF move to Shenzhen successful
■■ Good growth expected across the rest of
portfolio
DUBAI
■■ Good progress at GESS
■■ Airshow outlook very positive
34
outlook – Europe
LABELEXPO
■■ Well ahead of previous edition
3D PRINT
■■ Rapid expansion planned
■■ Early bookings have been strong
FRANCE
■■ Bookings tracking well
■■ Remain cautious overall
35
Summary
Continuing to Quicken
the Pace
■■ Strong financial and operational
performance in 2014
■■ Good organic growth supplemented
by strategic acquisitions
■■ Replication strategy accelerating
■■ Quickening the pace progressing well
■■ Outlook is positive with strong
bookings
37
Q&A
Appendices
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, profit on sale of subsidiary
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,
profit on sale of subsidiary and unwinding of discount.
Like-for-like revenue:
Calculated using constant exchange rates adjusted for biennial events, excluding acquisitions impacting for the first time
in 2014, prior year disposals and non-recurring products and items.
Gearing:
Calculated using net debt divided by EBITDA average of the previous two years.
EBITDA:
Calculated using ‘adjusted profit before tax’ before depreciation charge and interest.
39