ITE Group PLC

Interim Results6 months ended 31st March 2005

ITE Group plc – Interim Results March 2005

1

• Founded in 1991

• Over 600 staff

• 14 Corporate offices

• Over 140 B2B trade exhibitions and events p.a.

• Events in 15 countries

• Emerging and developing markets focus

ITE In Brief

2

ITE Group plc – Interim highlights

• Turnover: £22.7 million (2004: £20.2 million) up 12%

• Headline profit before tax of £3.8 million (2004: £2.1million)

• Cash reserves: £38.0 million (2004: £29.4 million) up 30%

• Increased interim dividend of 0.9p per share (2004:0.55p)

• Up to £30m Share buy-back later this year

• Strong trading performance in ten leading H1events

- 14% growth in space sales and 17% growth in revenue

• Successful expansion of Mosbuild into new facility

• Strong forward sales for the second half of the year

3

ITE Group plc – 2005 Interim Financial Highlights

6 months Ended 6 months Ended

31 March 2005 31 March 2004

UnauditedUnaudited

Turnover up 12% £22.7m £20.2m

Gross Margin 38%36%

Gross Profit up 22% £8.6m£7.2m

Operating expenses (£6.0m)(£5.6m)

Contribution from associates £0.3m£0.1m

Net interest receipts £0.9m£0.4m

Headline profit before tax £3.8m£2.1m

Diluted Headline EPS 1.0p0.6p

Dividend per share 0.9p0.55p

* All figures above stated before amortisation

4

ITE Group plc – Cash Flow

6 months to 6 months to

31 March 200531 March 2004

UnauditedUnaudited

£m£m

Net Cash Flow from Operations 14.29.2

Net Interest & Dividends Received 1.30.3

Taxation (4.5)(2.0)

Capital Expenditure & Financial Investment 0.3(0.1)

Acquisitions / Disposals (2.3)1.8

Dividends Paid (4.6)(3.0)__________

4.46.2

Issue of Shares 0.11.0

__________

Increase in Cash 4.57.2

__________

5

ITE Group plc – Consolidated Balance Sheet

31 March 2005 31 March 2004Unaudited £’m Unaudited £’m

FIXED ASSETS• Goodwill 30.5 27.0• Tangible Assets 1.8 2.0• Associates & Investments 1.2 1.1

_____ _____33.5

30.1

CURRENT ASSETS• Debtors due within 1 year 22.6 16.9

due after 1 year 2.7 3.0• Cash 38.0 29.4

_____ _____63.3

49.3

CREDITORS• Deferred Revenue & Creditors 49.3 38.7• Deferred Consideration & Provisions 1.5 0.9• Proposed Dividend 2.6 1.5

_____ _____53.4

41.1

_____ _____NET ASSETS 43.4 38.3

_____ _____

ITE Group plc – Sales Analysis

6

Square metres000’s

Revenue

£m

Gross profits

£m

First Half 2004

85.3 20.2 7.2

Timing differences

(6.7) (0.9) (0.4)

Core growth

7.8 1.2 1.0

New events launched 9.1 1.8 0.1

Acquisitions 6.5 1.6 0.8

Non - recurring

(5.0) (1.2) (0.1)

First half 2005

97.0 22.7 8.6

ITE Group plc - Currency Exposure

7

• ITE revalues monetary assets monthly

Exchange Rates Unhedged at Forward 30 Sept ‘04 31 Mar ‘05 31 Mar ‘05 Cover

Euro 1.46 1.46 € - €16m @ 1.45

US Dollar 1.80 1.88 $2.7m $ -

Other £2.1m* £ -

* Sterling equivalent• 2005 Proforma sales analysis

Proforma Av. Sales Av. Sales

2005 sales % of Revenue Rate HI 2005 Rate 2004

Euro based £42.5m 59% 1.47 1.44

US Dollar based £24m 33% 1.85 1.69

Other £6m 8%

8

ITE Group plc - IFRS accounting

Timetable for IFRS accounting

• ITE will adopt IFRS Accounting for 2005 – 06

• IFRS Reconciliation for Financial Year 2005 Report

Main changes for ITE will be

•IFRS2 Share based payments to be costed by fair value at date of grant

•IFRS 3 Acquisitions use fair value allocated over identifiable assets

•IFRS 3 Goodwill not amortised but tested for impairment

•IAS 14 More detailed presentation on segmental reporting

•IAS 39 Derivatives – hedge accounting

9

ITE Group plc – Top Ten H1 Events

Area (m2) Area (m2)

2004/2005 2003/2004

Moscow International Travel and Tourism Russia 19,300 17,000

Kazakhstan Oil & Gas Kazakhstan 7,400 6,200

Ingredients Russia Russia 5,500 4,700

MODA UK Spring UK 12,100 10,300

TransRussia Russia 4,600 3,100

Moscow International Sports Show Russia 3,300 4,000

Kievbuild Ukraine 5,000 4,100

Public Health Ukraine 3,500 n.a.

Informatica Technology (ITC) Ukraine 3,000 n.a.

Worldfood Ukraine Ukraine 2,400 2,800

0

5000

10000

15000

20000

25000

2000/ 01 2001/ 02 2002/ 03 2003/ 04 2004/ 05

Financial Year

Met

res

sq

10

ITE Group plc - Top 5 ranked by gross profit

MITT

Moda UK

TransRussia

KIOGE

Ingredients Russia

11

ITE Group plc –Share buyback

5

10

15

20

25

30

20

01

20

02

Cash Balances (£M)

16.3

40

35

20

03

20

04

Inte

rim

20

05

17.7

22.1

33.5

38.0

• Group’s debt capacity circa £50m

• Acquisition programme can be accommodated

• Post tax yield on cash 3.5%

• Earnings accretive – circa 0.3p per share

12

ITE Group plc – Trading Update

Sales at 13th May 2005

• £64.1m of sales booked for full year.(£53. 3m sales booked at the same time last year).

• 88% of market expectations for 2004/05 sales now booked (92% same time last year)

• Like for like forward bookings for the remainder of 2005 and for FY 2006 both show improvement of 10%+ on last year’s equivalent figures

13

Trading Update & Developments

• Moscow International Travel – space up 13% / revenue up 6%

• TransRussia rebound from 3,100m² to 4,600m²

• Competitive launch against Moscow Sports

• Successful expansion of Mosbuild into Crocus in April

• Crocus expands space to 90,000m² gross for 2006

• Location issue – Autosalon 2006

ITE Group plc – RussiaMoscow, St Petersburg

14

Trading Update & Developments

• Kazakhstan Oil & Gas event

• - Exhibition expands into new pavilion

• - Revenue up by 10% overall

• 9 successful new launches in Caspian Region

• Baku Oil & Gas acquisition well placed

• Strong growth prospects in Uzbekistan

ITE Group plc - Central AsiaKazakhstan, Azerbaijan, Uzbekistan

15

Trading Update & Developments

• Acquired Informatica Technology & Public Health events grow 20% (m²)

• Kievbuild growth 20% (m²)

• Political instability affects Worldfood Ukraine

• ITF: • Successful Auto Shows

• Re – focussing of textile clothing show

• New initiative for furnishing event

ITE Group plc - Ukraine, Turkey

16

Trading Update & Developments

• Successful Spring Moda UK Event up 16% in sales (m²)

• Fashion Extras title acquired – exhibition potential

• RAS Publications integration – revenue targets achieved

ITE Group plc - UK

• More of the same…primary focus on organic growth in core markets

• Excellent growth prospects in existing markets

• Vigilence in existing key markets – no complacency

• Close co-operation with venues in all markets

• More m2 on existing events

• Active new launch program – New themes, established markets – Established themes, new markets

• Opportunistic bolt-on acquisitions - Sector or market fit

ITE Group plc - Strategy

17

18

Appendices

I Shareholder structure

II Gross profit by location

III Gross profit by industry

IV ITE’s Local infrastructure strength

V Venue prepayments and loans

VI International venue space

VII Cash profile of Business

VIII Cost of exhibiting

ITE Group plc – Interim Results 31 March 2005

19

ITE Group plc – Shareholder Structure May 2005 Appendix I

% No of Shares

(millions)

• Aberforth 12.4 35.7• Schroders 12.2 35.3 • Veronis Suhler Stevenson 10.7 30.9• Fidelity 7.5 21.7 • Ceyda Erem 6.8 19.5• Edward Strachan 5.0 14.4• Merrill Lynch 4.4 12.5 • ESOT 3.9 11.1• Scottish Widows 3.8 11.0• Barclays Global Investors 3.3 9.6 • UBS Global 3.2 9.3• Legal & General 2.7 7.8• Threadneedle 2.1 6.0• JP Morgan Fleming 2.0 5.9• Old Mutual 2.0 5.7• Other Management 0.1 0.2• Other Institutions and individuals 17.9 52.2

_____ _____Total shares in issue 100% 288.8

_____ _____

Options in the money at 93.5 pence 17.3

Options on issue not in the money NB: Management including ESOT 15.8% Management including options in the money 20.4%

20

ITE Group plc – Geographic Spread Appendix II2005 Pro-forma Gross Profit by Geographic Location of Event

2005 (2004) Gross Profit by Region

Western Europe9% (8%) Southern & Eastern

Europe4% (3%)

Central Asia12% (13%)

Russia72% (76%)

Rest of the World3% (0.2%)

21

ITE Group plc – By Industry Appendix III2005 Pro-forma Gross Profit by Industry Sector

2005 (2004) Gross Profit by Sector

Travel

12% (13%)

Food

11% (12%)

Other

6% (8%)

Oil & Gas

16% (9%)

Motor & Transport

7% (8%)

Fashion

5% (5%)IT & Telecoms

6% (5%)

Construction

37% (40%)

ITE Group plc - ITE’s Local Office Infrastructure Strength Appendix IV

       

Office Country Staff Events

      2004

Moscow Russia 119 36

St Petersburg Russia 60 12

Kyiv Ukraine 66 22

Almaty      

Astana Kazakstan 81 34

Atyrau      

Tbilisi Georgia 6 4

Tashkent Uzbekistan 25 8

Baku Azerbaijan 21 10

Istanbul Turkey 34 4

Johannesburg S. Africa 10 2

Hamburg Germany 26 na

Huddersfield UK 32 2

London / ROW   105 6

       

Total   585 140

       

ITF (50% owned) Turkey 93 12

22

23

Loans and Agreement Commitments

Dates £m

Venue Related

Moscow to 2010 -

St Petersburg to 2012 1.8

Almaty to 2010 0.9

Uzbekistan to 2011 0.1

Kyiv to 2011 1.4

Istanbul to 2025 -

Other 0.1

_____4.3

_____Other Loans

Prague 0.7

_____

5.0_____

ITE Group plc - Venue Prepayments & Loans Appendix V

24

ITE Group plc – International venue space Appendix VI

Gross m2 Gross m2 Gross m2 Gross m2

Expocentre 70,000 NEC 200,000 Nord 191,000 Cologne 285,000Crocus* 90,000 EXCEL 60,000 Versaille 151,000 Frankfurt 324,000Gostigny Dvor 5,000 ECO 100,000 CNIT 5,000 Berlin 160,000Olympiski 11,000 Louvre 19,000 Hanover 498,000VVC 20,000 Dusseldorf 233,000WTC 2,000 Nuvemburg 148,000

Munich 155,000198,000 360,000 366,000 1,803,000

* Projected for 2006 - 60,000m2 curently under construction

Moscow U.K. Paris Germany

ITE Group plc – Cash Profile of Business Appendix VIIFor a typical trade exhibition

Revenue

• 20% 12 months out• 40% 6-7 months out• 40% 2-3 months out

Costs

• 10% Staff throughout• 10% Promotion throughout• 25% Venue 2 months out• 10% Stand construction 0 months out• 45% Gross Profit

Exhibition 5000 m2 - £1M Revenue

0

100

200

300

400

500

600

-12 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0

Months to opening of exhibition

£'000s

Cumulative Cashflow

25

26

ITE Group plc – Cost of exhibiting Appendix VIII