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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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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)
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
Revenue £21.9m £19.6m
Divisional Analysis
ITE Group plc – Preliminary Results for the year ended 30 September
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
Revenue £17.9m £15.3m
Divisional Analysis
ITE Group plc – Preliminary Results for the year ended 30 September
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
Revenue £10.1m £12.5m
MMMM │DelhiBuild
UK
INDIA
Further brand extension opportunities
UK
INDIA
Venue space restricting industry
Small acquisition opportunities
Divisional Analysis
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
Consideration €33m
EBIT (annualised) €5m
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
ITE Group plc – Preliminary Results for the year ended 30 September
2011
Consideration €10m
EBIT (annualised) €2m
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%
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
2011
Revenue by sector and region 2011 (2010)
ITE Group plc – Preliminary Results for the year ended 30 September
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
ITE Group plc – Preliminary Results for the year ended 30 September
2011