Preliminary Results Year ended 30th September 2010 Preliminary Results...2010-2013 €100m @ €1.15: £1 +5% Effect of Recession ITE Group plc – Preliminary Results for the year

Preliminary Results Year ended 30th September 2010

ITE Group Plc

Highlights for the year to 30 September 2010

Page 1ITE Group plc – Preliminary Results for the year ended 30th September 2010

Financial Results 2010 2009

Revenue £113.5m £116.7mHeadline profit before tax £36.6m £45.8mDividend 5.7p 5.5pCash at 30 September £23.0m £23.1m

Economies moved from recession to recovery over the year

£20m - business and brand expansion: India, Ukraine, Turkey

Strong working capital inflow in year : £50m

Good prospects for cyclical rebound 2011-14

L4L sales for 2011: 10% +

£39.5m ex biennial & forex


2010 FINANCIAL RESULTS

Financial Highlights for the year to 30 September 2010


2010 2009

Audited Audited

Turnover £113.5m £116.7m

Gross profit margin 49% 52%

Headline profit before tax £36.6m £45.8m

Tax rate 23% 26% Lower underlying rates & planning

Headline diluted EPS 11.6p 14.2p

Dividend per share 5.7p 5.5p Continued progressive policy

Acquisitions + £ 8mFx + £ 4mBiennial - £ 5mNet trading - £10m

Biennial - 1.5%Acquisition effect -1%

2009 to 2010 Headline PBT Bridge


45.8 (2.1)(4.0)

(4.3)

(1.8) 3.0 36.6

25

35

45

55

2009 Headline PBT Foreign exchange turnaround

Biennial Effect of Recession Overheads, Financing receipts & Associates

Acquisitions 2010 Headline PBT

Hea

dlin

e PB

T £M

Cash Flow – 2009 to 2010 Cash Bridge


Aqua-therm €15.0mIndia £3.4mGlobal £1.1m Other £3.7m

Turkey £8.0m136% of Headline PBT

23.1

49.7 (1.1) (7.4)

(9.2)

(18.6)

(13.3)

23.0

0

10

20

30

40

50

60

70

80

90

2009 Cashflow from Operations

Net Financing, Forex, Divs from Associates

& Capex

Tax Venue Prepayments Acquisitions & Def Consideration

Dividends 2010

Cas

hflo

w -

£M

£93

Sales and Yields Analysis


Metres RevenueGrossProfit Yield

000s £m £m Per m²

2009 Results from Events 423 116 60

Non annual 2009 (17) (7) (5)

2009 Recurring Events 406 109 55 £268

Acquisitions 88 8 3

Net other (52) (8) (4)

2010 Recurring Events 442 109 54 £247

Non annual 2010 49 3 1

2010 Results from Events 491 112 55

£285 ex acquisitions

Currency and hedging

ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 7

Currencyof sale

2010 %

Average sales rate

2010 2009

EUR 72 1.15 1.21

GBP 11 1.0 1.0

RUB 5 47 46.5

Other 12

Forward cover2010-2013

€100m @ €1.15: £1

+5%

Effect of Recession


24,400

1,300

3,100

3,300

4,800

800

8,700

2,500

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

2008 v 2010 Net SqmTop 10 Events

2010 2010 difference from 2008

62,700

19,500

21,000

34,100

7,900

14,200

7,400

6,400

4,600

5,100

Trading update – 2011 contracted revenue


* Based on consensus revenue of £130m

£40m£52m £56m

£70m

£54m

£74m

0

10

20

30

40

50

60

70

80

90

100

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011*

%

£m Sales booking

% Booked of full year revenue after 2 months trading.

48% 53% 51% 60% 48% 56%


Divisional Analysis

Revenue by sector and region 2010


ITE Group Revenue by Region

58%17%

14%

7% 4% Russia

Central Asia & Caucasus

Eastern & Southern Europe

UK & Western Europe

Rest of World

ITE Group Revenue by Sector

39%

12%12%

10%

7%

5%

15%Construction

Oil & Gas

Travel

Food & Drink

Fashion & Textiles

Motor & Transport

Other

Business Review


SUMMARY – Revenues for the year ended 30 September

2010£m

2009£m

% change

Russia 66.1 80.9 -18%

Central Asia & Caucasus 19.6 19.0 +3%

Eastern & Southern Europe 15.3 9.6 +60%

UK & Western Europe 8.2 7.0 +17%

Rest of World 4.3 0.2 -

Total 113.5 116.7 -3%

(net biennial - £6m )

(acquisitions + £7m)

GDP growth in ITE’s markets


2009* 2010* 2011*

• Russia (8%) 4% 4%

• Kazakhstan 1% 5% 5%

• Azerbaijan 9% 4% 2%

• Uzbekistan 8% 8% 7%

• Ukraine (15%) 4% 5%

• Turkey (5%) 8% 4%

• UK (5%) 2% 2%

• India 6% 10% 8%

*Source: IMF World Economic outlook database, Oct 2010

Russia


2010

L4L volume sales in Russia 14% down on 2009

Moscow recovery | regions following

Complementary acquisition of Global Expo - Moscow

Outlook

Good opportunities for expansion to new sectors

St. Petersburg – new larger venue planned for 2013

Novosibirsk – new larger venue under construction

2010 2009

m² ‘000 206 257

Revenue £66.1m £80.9m

Central Asia


2010

Kazakhstan – markets improving | construction slowly

Azerbaijan – new 28,000m2 venue opened in June 2010

Uzbekistan & Azerbaijan trading positively

Outlook

Aqua-therm opportunities in Kazakhstan and Azerbaijan

Competition for oil & gas conference

2010 2009

m² ‘000 60 61


Eastern and Southern Europe


2010

Ukraine flat now | Turkey growing

New sectors in Turkey - Food | Furnishings | Machinery | Gifts

Aqua-therm Kyiv - a market leading event

Outlook

Further expansion opportunities in both countries

New space in Istanbul at both leading venues!

Extension of venue agreement in Kyiv

2010 2009

m² ‘000 179 74


UK / Rest of World


2010

UK - Steady trading conditions

- Successful brand extension – lingerie & bubble

India - Good trading conditions

- Paperex | Lighting South Asia

Professional Conference Organiser (PCO)

- LNG 2010

Outlook

UK - Plans for new launch activity in fashion

India - New launches planned: food, construction

- Venue space restricting industry

PCO - SEA 2011

2010 2009

m² ‘000 47 31



STRATEGY


to strengthen and build on existing market leadership

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

to grow and improve portfolio of international brands

to invest in management development

Strategic Priorities


Market Leadership

MarketLeadership

Venue Relationships

International Sales Reach

Local Office Infrastructure

Brands

Brand Management

Event Investment

Staff Development

New Offices – Delhi

Theme Protection

Preferential Rates

New ISD

Investment in Staff

Plan for New Offices

MarketLeadership

Better Facilities

Pre‐payments


Expanding the Business Model

International Brands

‘New Market’‘In Market’

Joint Ventures

Launches

Acquisitions

Industrial Machinery

Aquatherm Moscow

MIMS

Krasnodar

Global Expo

ITFFood, Gifts, Furniture,

Machinery

India

EMITT

Aquatherm Kyiv

Siberia


Strategy Execution 2008 - 2010

Date Event Consideration Annual Revenue

March 2008 Siberian Fair €8.0m €5.5m

April 2008 Interstroyexpo €15.0m €2.0m

Jan 2009 EMITT €4.0m - €5.5m €2.6m

Nov 2009 India €4.0m €1.6m

Feb 2010 Split Associate 50% of Associate €5.0m

April 2010 Global Expo €1.8m €1.4m

April 2010 Aqua-therm €15m €4.0m

TOTAL €49m €22.1m

Sector expansion in market

New market

Existing market & sector


Trading through the cycle

Sqm‘000s Revenue

Gross profit

2008* Portfolio 500 £108m £55m

Organic Change (165) (£14m) (£6m)

Acquisitions 156 £18m £6m

2010* Portfolio 491 £112m £55m

*2008 and 2010 are biennial equivalents

Volume - £12m€:£ / costs +£6m

Outlook


Good economic growth in core regions

Good potential for cyclical recovery

Good strategic opportunities to extend the business model

Cash at 26 Nov – £25m + [gearing potential]

2010 v 2008: a stronger business base

ITE world


1. Algeria2. Azerbaijan3. China4. Georgia5. Germany 6. Great Britain7. Holland8. India9. Kazakhstan10. Kyrgyzstan

11. Poland12. Russia13. Spain14. Tajikistan15. Turkey16. Turkmenistan17. UAE18. Ukraine19. Uzbekistan

Offices in these locations Events held in this territory

1 13

6

5

7 11

1518

17

24

16

8

9

19

14 10

12

3


APPENDICES

Contents


I Shareholder Structure at 27 October 2010

II Key Management Team

III Top 10 Events

IV Group Balance Sheet

V Venue Prepayments and Loans

Shareholder structure at 27 October 2010


% No. of Shares(millions)

BlackrockSchrodersStandard LifeOld MutualScottish WidowsLegal and GeneralThreadneedle InvestmentsJ P MorganDirectors

ESOTOther Institutions and individuals

16.4%15.6%

6.0%6.0%5.5%5.2%4.6%3.1%2.9%

4.0%30.7%

40.738.714.814.813.712.811.5

7.77.1

10.076.5

Total Shares in issue 100% 248.3Options in the money: 0.2% 0.4m

Management including options in the money 3.3%

Free float 96.7%

Average daily trading volume (6 months) 0.8m

Management Team


Iain PatersonChairman

Russell TaylorCEO

Regional DirectorMoscow

General Director

Corporate Development

DirectorFinance Director

International sales DirectorMODARegional Director

Edward StrachanAlexander ShtalenkovSuzanne KingNeil Jones Andy BraidColette TebbuttStephen Keen

John PriceCompany Secretary

Key exhibitions (in 2010 gross profit order)


Rank Event Location 2010

m² sold

2009

m² sold

2008

m² sold

1 MosBuild & MosBuild+ Moscow 62,700 74,900 87,100

2 Moscow International Travel & Tourism (MITT) Moscow 19,500 20,200 20,800

3 World Food Moscow Moscow 21,000 16,300 24,100

4 MODA UK Birmingham 34,100 29,200 33,300

5 Kazakhstan Oil & Gas / conference Almaty 7,900 10,300 11,200

6 AcquaTherm Kyiv 14,200 14,800* 19,000*

7 Transrussia Moscow 7,400 7,300 8,200

8 Moscow International Protection and Security Moscow 6,600 6,400 6,400

9 Interstroyexpo St. Petersburg 6,400 10,100 15,100*

10 Expoelectronica Moscow 5,100 5,300 9,200

% of Gross Profit earned by Top 10 events

* not under ITE ownership

65%

Consolidated Balance Sheet


30-Sep-10Audited £‘m

30-Sep-09Audited £‘m

Non Current Assets•Goodwill & Intangibles 79.4 60.6•Other non-current assets 9.8 6.6

89.2 67.2

Current Assets• Debtors due within 1 year 39.9 35.1• Cash (net of O/D) 23.0 23.1

62.9 58.2Creditors• Deferred Revenue & Creditors 70.5 62.8• Deferred Consideration 1.8 1.1• Deferred Tax 5.9 4.1• Provisions 1.3 0.8

79.5 68.8

Net Assets 72.6 56.6

£27.7m£30.6m

Venue prepayments and loans


Venue LocationPrepayments

30 September 2010Theme

ProtectionRates

Agreed

Expocentr Moscow - 2013 2013

Crocus Moscow £1.2m 2015 2011

Lenexpo St Petersburg £0.4m 2012 2012

Atakent Almaty £0.7m 2017 2017

IEC Kiev £0.9m 2014 2014

Uzexpocentr Tashkent £0.3m 2011 2011

CNR Istanbul £7.0m 2014 2014

TOTAL £10.5m

Documents

Preliminary Results Year ended 30th September 2010 Preliminary Results...2010-2013 €100m @ €1.15: £1 +5% Effect of Recession ITE Group plc – Preliminary Results for the year