2016 INTERIM RESULTSJuly 2016
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agenda ■ Overview
■ Financial and operational highlights
■ Strategy update
■ Outlook
■ Summary
■ Q&A
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Overview ■ Excellent operational and financial results
■ Continuing strong organic growth
■ Replications programme on track
■ Expanding portfolio in SE Asia
■ Purchase of minority shares (Life Media)
■ Bookings 10% ahead with promising outlook for larger events
Financial and operational highlights
Financial Summary ■ Strong financial performance
■ Good underlying revenue growth of 11% like-for-like
■ Dividend up 8% to 2.7p
■ Investment in PEP and purchase of minority shares
■ Gearing of 2.0x net debt : EBITDA
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Financial Overview2016 2015 2014
Group revenue £27.0m £29.0m £18.7m
Adjusted PBT £4.0m £5.1m £3.1m
Adjusted tax rate 15% 15% 16%
Adjusted EPS 2.8p 3.1p 1.6p
Interim dividend 2.7p 2.5p 2.4p
Net debt £57.3m £43.5m £34.7m
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Revenue Drivers
2015 2015 Biennial/ Timing
FX Acquisitions Organic 2016
£29.0m £6.2m
£0.5m
£2.6m £27.0m
40
35
30
25
20
15
0
£1.0m
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net debt
Dec’ 15 Foreign exchange
Dividends Interest & Tax
Exceptional costs
EBT purchases
Movements in FV swaps
Acquisitions Disposals Cashflow from
operations
June 16
£43.8m
£8.8m £1.2m
£3.0m
£1.4m
£2.3m
£0.8m£1.1m
£0.8m
£1.9m
£57.3m
60
58
56
54
52
50
48
46
44
42
40
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Net Debt ■ Net debt at 30 June 2016 £57.3m
■ Represents gearing of 2.0x net debt : EBITDA
■ Working capital inflows heavily H2 weighted
■ Target remains 1.5-2.0x
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results by geography
Emerging Markets2016 2015 2014
2016 v 2014
Biennial revenue - £5.0m - -
Annual revenue £14.0m £12.7m £11.1m 26%
Total £14.0m £17.7m £11.1m 26%
Operating profit £3.8m £4.9m £2.8m 38%
Organic Growth ■ Turkey – Ideal Homex strong performance
■ Good trading in China ■ AAITF performed well ■ SIUF good progress
■ Dubai GESS visitors +18% ■ Mexico in line (Expo Manufactura and Plastimagen)
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USA2016 2015 2014
2016 v 2014
Annual revenue £11.8m £9.7m £6.7m 74%
Operating profit £2.9m £2.6m £2.0m 39%
Organic Growth ■ Off Price Feb - good event ■ Medical division return to revenue growth
■ Established events and PAINWeek-ends performing well
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Europe2016 2015 2014
2016 v 2014
Annual revenue £1.2m £1.6m £0.9m 41%
Operating profit £0.0m £(0.1)m £0.4m -
Organic Growth ■ France disposed 2015 - excluded from comparatives
■ Additive Manufacturing show (Amsterdam) good progress
■ Labels publishing performing well
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strategy update
QUICKENING THE PACE ■ Focus on accelerating financial returns to shareholders
■ Market-leading portfolio built in high growth economies
■ Strong focus on organic growth
■ Like-for-like revenue growth ■ Increase visitor / buyer numbers ■ Replicate major brands across geographic
footprint
■ Small strategic acquisitions
■ Gradual buy-in of minority interests ■ Bolt-ons (where appropriate)
■ Active portfolio management
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DIFFERENTIATING TARSUS
■ Entrepreneurial management culture
■ Markets in transition
■ Geographic footprint - targeting specific markets
■ Best in class assets
■ Visitor / buyer focus
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financial themes ■ US$ assets
■ Minimal Euro exposure
■ GBP debt
■ Fixed interest rates
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2016 Interim performance
target achieved
Accelerating EPS growth 5-10% pa ✔
Visitor Growth >5% ✔
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Growth trends
2013 2014 2015 2016 H1
Visitor growth 8% 6% 9% 7%
Revenue growth 11% 10% 10% 11%
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STRATEGIC PROGRESS ■ Visitor / buyer programme – momentum continuing
■ Replication programme on track
■ Expansion of portfolio in SE Asia - PEP
■ Medical portfolio progressing
■ Buy-in of 30% minority in Life Media (Turkey)
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Replications gathering pace
E X P O M E X I C O 2 0 1 6
M o n t e r r e y
w w w . i n d u s t r i a l p r i n t e x p o . c o m
M é x i c o F e b r e r o 2 - 4
2015 2016 2017
GESS ü - ü
AdditiveManufacturing ü ü ü
Cardio ü ü ü
OFFPRICE ü - ü
Ind’lPrint ü - ü
Zuchex ü - ü
Turkey ü - ü
Aerospace ü ü ü
AAITF ü ü ü
AMB - ü ü
15 13 14
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PEP ■ Acquisition of 51% of PEP
■ Adds scale and opportunity in SE Asia
■ Provides platform in Philippines
■ Main show is Wofex, food and hospitality
■ Established in 2000; experienced and entrepreneurial management
■ Expansion opportunities include replication of infrastructure show
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south east asia strategy
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south east asia strategy Food Auto Infrastructure
Indonesia ü ü
Myanmar ü ü ü
Cambodia ü ü ü
Malaysia ü
Philippines ü ü ü
SriLanka ü
Vietnam ü
Laos ü
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China ■ 2015 Government strategy
■ Tarsus focused on internal consumer driven markets
■ 3 key legs
■ Shanghai ■ Shenzhen ■ Second tier markets
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Medical Division ■ Strategy to diversify and reposition gaining traction - revenues +5%
■ Large shows performing well
■ PAINWeekends strong performance
■ 80% of revenue derived from shows
■ Investment in organic development continues
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Turkey ■ Trading remains good
■ 11% of group revenues
■ Acquisitions of Life Media minority interest
■ Regional focus and position as trading gateway
■ Manufacturing/exports
■ 90% domestic customers
■ Mindful of political situation
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OUTLOOK
outlook ■ Overall current year bookings tracking 10% like-for-like
■ Bookings for larger shows strong
■ Group remains confident of strong performance for the year
■ Major 2017 biennial shows tracking well
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Summary
Summary ■ Strong operational and financial results
■ Achieving good strategic progress
■ Continued implementation of Quickening the Pace
■ Good organic growth ■ Replication portfolio – increasing
momentum ■ Well positioned for the future
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Q & A
GlossaryADJUSTED PROFIT BEFORE TAX: Calculated using profit before tax adjusted for exceptional items, share option charges / credits, losses on movements in fair value of unsettled derivative instruments, amortisation charges, impairment of intangibles, profit / loss on disposal of intangibles and tangible fixed assets, profit on sale of subsidiary and unwinding of discount – contingent consideration.
ADJUSTED EPS: Calculated using profit after tax attributable to equity shareholders adjusted for exceptional items, share option charges / credits, losses on movements in fair value of unsettled derivative instruments, amortisation charges, impairment of intangibles, profit / loss on disposal of intangibles and tangible fixed assets, profit on sale of subsidiary and unwinding discount – contingent consideration.
LIKE-FOR-LIKE: Calculated using constant exchange rates adjusted for biennial events, excluding acquisitions impacting for the first time in 2016, prior year disposals and non-recurring products and items.
GEARING: Calculated using net debt excluding derivatives divided by EBITDA average of the previous two years.
EBITDA: Calculated using ‘adjusted profit before tax’ before depreciation charge.
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