agenda - tarsus group · aaitf thailand ü gess indonesia ü h2 2015 replications 7 total...
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Agenda ■ Overview
■ 2015 focus and performance
■ Financial and operational highlights
■ Strategy update
■ Outlook
■ Summary
■ Q&A
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overview ■ Strong operational and financial results
■ Emerging Markets and US producing strong organic growth
■ Encouraging performance from replications with strong launch plan
■ Strategic acquisitions of PAINWeek and AMB (July)
■ France disposal - Further reduction in exposure to Eurozone in line with stated strategy (July)
■ Bookings 15% ahead with very encouraging outlook for larger events
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2015 focusDELIVERING THE THREE KEY PILLARS OF THE ‘QUICKENING THE PACE’ STRATEGY
■ Organic growth – revenue + visitors
■ Replications
■ Selective strategic acquisitions
COMPLETION OF STRATEGIC REPOSITIONING ■ Increase Emerging Markets and US exposure
■ Reduce Eurozone exposure
TRANSITIONING THE MEDICAL DIVISION
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financial and operational highlights
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Financial Summary
■ Record financial performance
■ Organic revenue growth of 14%
■ Adjusted PBT/EPS growth strong
■ Dividend up 4% to 2.5p
■ Gearing of 1.8x net debt : EBITDA
■ Good cash flow conversion
■ Bank facilities increased to £75m and extended to 2020
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2015 2014 2013 2015 V 2013
Group Revenue £34.0m £23.1m £26.0m 31%
Adjusted PBT £5.5m £3.0m £3.9m 39%
Adjusted Tax Rate 15% 16% 15% -
Adjusted EPS 3.4p 1.5p 2.6p 31%
Interim Dividend 2.5p 2.4p 2.3p 9%
Net Debt £43.5m £34.7m £29.2m 49%
Financial Overview
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Financial trends
5
4
3
2
10
0
5
4
3
2
10
0
1.0p
2.2p2.6p
EPS Dividend
2.3p
1.5p
2.4p
3.4p
2.5p
H1 2012 H1 2012H1 2013 H1 2013H1 2014 H1 2014H1 2015 H1 2015
Pence Pence
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Revenue bridge
2014
34
32
30
28
26
24
22
20
FX Biennials Acquisitions
Launches
Organic Growth 2015
23.10.6
4.5
£’m
2.5
3.4 34.0
9
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net debt bridge
Dec ‘14
60
50
40
30
20
10
0Share
purchasesAcquisitions Dividends Interest
& TaxCashflow
from operations
Jun ‘15
10.12.33.5
8.4
1.038.443.5
£’m
10
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france ■ Disposal of French business for €9.2m in July - 8 x EBIT multiple
■ Subject to shareholder approval
■ Impairment charge £1.8m
■ Completes Tarsus portfolio transformation started in 2010
■ Proceeds used to strengthen Tarsus balance sheet and fund further expansion in core territories
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2015 2014 2013 2015 V 2013
Biennial revenue £5.0m - £4.2m 19%
Annual revenue £12.7m £11.1m £8.1m 57%
Total £17.7m £11.1m £12.3m 44%
Operating profit £4.9m £2.8m £3.3m 45%
emerging markets
ORGANIC GROWTH ■ Turkey remains strong – Asansor + Komatek
■ GESS and GPP in Dubai performed solidly ■ Hope revenues ahead in China; SIUF showed good progress
■ Expo Manufactura in line
REPLICATIONS ■ GESS in Mexico City performed solidly; Jakarta to follow in H2
■ Successful launch of Big 5 in Jakarta
ACQUISITIONS ■ 50% of AMB acquired in SE Asia
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2015 2014 2013 2015 V 2013
Biennial revenue - - - -
Annual revenue £9.7m £6.7m £8.3m 17%
Total £9.7m £6.7m £8.3m 17%
Operating profit £2.6m £2.0m £2.6m -
usa
ORGANIC GROWTH ■ Off Price - good visitor growth ■ Further progress in Medical repositioning ■ Established events performing as expected
REPLICATIONS ■ Cardio regional shows held in Atlanta and Dallas
ACQUISITIONS ■ South Beach performed ahead of expectations
■ PAINWeek – final pillar of preventative medicine
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■ First SBS show performed ahead of expectations
■ PAINWeek addition completes the Medical Division footprint
■ Cardio regional replications successfully launched
■ Large MCII events performing well
■ Education - new brands gaining traction (on line positive)
■ Transition plans on track
Growth
Education
72%
2013
MCII MCII
Cardio
PAINWeek
SBS
2014pro-forma
25%
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
medical
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2015 2014 2013 2015 V 2013
Biennial revenue £0.8m - £0.7m 14%
Annual revenue £5.7m £5.3m £4.7m 21%
Total £6.5m £5.3m £5.4m 20%
Operating profit £0.2m £0.3m £(0.1)m -
europe
ORGANIC GROWTH ■ 3D Printshow showed good progress at established events in London & New York
■ Labelexpo outlook promising
REPLICATIONS ■ New 3D Print events successfully launched in Berlin and Madrid
■ Further new 3D Print events in H2 in California and Dubai
M&A ■ French portfolio sold to management for €9.2m
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Strategy Update
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Strategy summary
■ Applying the elements of Quickening the Pace
■ Drive organic growth – revenue and visitors ■ Replicate established brands ■ Selective acquisitions to strengthen & scale the
proposition
■ Maximising the benefit of the Tarsus “Differentiators”
■ Entrepreneurial management culture ■ Passion ■ Speed
■ Markets in transition ■ Geographic footprint to target specific markets ■ Quality of assets (category killers)
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target h1 2015
Accelerating EPS growth 5-10% pa ü
Increasing share of revenues from US and EM >75% ü
Visitor Growth >5% ü
2015 interim performance
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growth trends
2013 2014 2015 h1
Visitor growth 8% 6% 9%
Revenue growth 11% 10% 14%
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portfolio transformation
Europe US EM
20%
47%33%
2009
15%
54%
31%
2015
20
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portfolio transformation
ShenzhenShenzhen
SOUTHEAST ASIA’S LEADING INTERNATIONAL TRADE SHOWS
2015-2016
CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SRI LANKA VIETNAM
DELIVERING BUSINESS ACROSS ASIA’S EMERGING MARKETS
US Medical
Disposals - France
Acquisitions
2014 2011
2012
2013
2014
2012
2013
2014
2015
2014
July 20152011
2012
2015
2014
Turkey SE Asia China Mexico
Global
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portfolio transformation
2009
100
90
80
70
60
50
40
30
20
10
0
Closed Disposals Launched Acquisitions 2015
61
13
Number of shows
9527
18
38
10
11
Acquired Brands
Acquired Territories
22
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AMB ■ Acquisition of 50% of AMB Group for estimated $13m
■ Established in 1996; very experienced and entrepreneurial management
■ Revenue $3.8m and PBT $2.2m in 2014
■ Major presence in Myanmar and Cambodia
■ Focusing on construction, food processing and automotive sectors
■ Expansion opportunities in Vietnam, Philippines, Laos and Sri Lanka
■ Adds significant scale and opportunity in key region
■ Doubles South East Asia portfolio
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SOUTHEAST ASIA’S LEADING INTERNATIONAL TRADE SHOWS
2015-2016
CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SRI LANKA VIETNAM
DELIVERING BUSINESS ACROSS ASIA’S EMERGING MARKETS
SOUTHEAST ASIA’S LEADING INTERNATIONAL TRADE SHOWS
2015-2016
CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SRI LANKA VIETNAM
DELIVERING BUSINESS ACROSS ASIA’S EMERGING MARKETS
SOUTHEAST ASIA’S LEADING INTERNATIONAL TRADE SHOWS
2015-2016
CAMBODIA LAOS MALAYSIA MYANMAR PHILIPPINES SRI LANKA VIETNAM
DELIVERING BUSINESS ACROSS ASIA’S EMERGING MARKETS
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organic growth indonesiaExisting show New brands Brand replications JV Launch
25
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organic replications gathering paceH1 2015 2015 2016
GESS Mexico ü ü
3D Madrid ü
3D Berlin/Amsterdam ü ü
Cardio Atlanta ü ü
Cardio Dallas ü ü
OFFPRICE Miami ü ü
Ind’l Print Turkey ü ü
Ind’l Print Mexico ü ü
H1 2015 REPLICATIONS 8 7
H2 2015
Zuchex Indonesia ü
3D California ü
3D Dubai ü
Cardio Las Vegas ü
MEBAA Morocco ü
AAITF Thailand ü
GESS Indonesia ü
H2 2015 REPLICATIONS 7
TOTAL REPLICATIONS 15
BangkokBangkok
SE Asia’s Auto Aftermarket ShowSE Asia’s Auto Aftermarket Show
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
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outlook
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outlook ■ Overall bookings tracking 15% ahead of 2014 (adj. for biennial events)
■ Major biennials Labelexpo Europe and Dubai Airshow strong
■ Turkey and Medical in line with expectations
■ Group remains confident of a strong full year performance
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Summary
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summary ■ Strong operational and financial results
■ Achieving stated targets - completed portfolio transformation
■ Delivering the Quickening the Pace strategy
■ Powerful organic growth ■ Replications – increasing momentum
■ Strengthened finances
■ Well positioned for further progress
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Q&A
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GlossaryADJUSTED 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 – contingent consideration.
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 discount – contingent consideration.
ORGANIC REVENUE GROWTH:Calculated using constant exchange rates adjusted for biennial events, excluding acquisitions impacting for the first time in 2015, 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.
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