july 2016 - tarsus...and plastimagen) 11 usa 2016 2015 2014 2016 v 2014 annual revenue £11.8m...

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2016 INTERIM RESULTS July 2016

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Page 1: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

2016 INTERIM RESULTSJuly 2016

Page 2: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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agenda ■ Overview

■ Financial and operational highlights

■ Strategy update

■ Outlook

■ Summary

■ Q&A

Page 3: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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

Page 4: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

Financial and operational highlights

Page 5: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 6: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 7: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 8: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 9: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 10: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

results by geography

Page 11: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 12: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 13: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 14: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

strategy update

Page 15: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 16: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

DIFFERENTIATING TARSUS

■ Entrepreneurial management culture

■ Markets in transition

■ Geographic footprint - targeting specific markets

■ Best in class assets

■ Visitor / buyer focus

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Page 17: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

financial themes ■ US$ assets

■ Minimal Euro exposure

■ GBP debt

■ Fixed interest rates

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Page 18: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

2016 Interim performance

target achieved

Accelerating EPS growth 5-10% pa ✔

Visitor Growth >5% ✔

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Page 19: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

Growth trends

2013 2014 2015 2016 H1

Visitor growth 8% 6% 9% 7%

Revenue growth 11% 10% 10% 11%

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Page 20: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 21: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 22: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 23: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

south east asia strategy

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Page 24: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 25: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

China ■ 2015 Government strategy

■ Tarsus focused on internal consumer driven markets

■ 3 key legs

■ Shanghai ■ Shenzhen ■ Second tier markets

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Page 26: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 27: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 28: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

OUTLOOK

Page 29: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 30: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

Summary

Page 31: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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Page 32: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

Q & A

Page 33: July 2016 - Tarsus...and Plastimagen) 11 USA 2016 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

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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