preliminary results year ended 30th september 2010 preliminary results...2010-2013 €100m @...
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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
Page 2ITE Group plc – Preliminary Results for the year ended 30th September 2010
2010 FINANCIAL RESULTS
Financial Highlights for the year to 30 September 2010
Page 3ITE Group plc – Preliminary Results for the year ended 30th 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
Page 4ITE Group plc – Preliminary Results for the year ended 30th September 2010
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
Page 5ITE Group plc – Preliminary Results for the year ended 30th September 2010
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
Page 6ITE Group plc – Preliminary Results for the year ended 30th September 2010
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 8
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 9
* 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%
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 10
Divisional Analysis
Revenue by sector and region 2010
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 11
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 12
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 13
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 14
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 15
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
Revenue £19.6m £19.0m
Eastern and Southern Europe
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 16
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
Revenue £15.3m £9.6m
UK / Rest of World
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 17
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
Revenue £12.5m £7.2m
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 18
STRATEGY
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 19
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 20
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 21
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 22
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 23
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 24
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 25
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 26
APPENDICES
Contents
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 27
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 28
% 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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 29
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)
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 30
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 31
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
ITE Group plc – Preliminary Results for the year ended 30th September 2010 Page 32
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