2
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
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
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
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
11
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
15
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
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%
portfolio transformation
Europe US EM
20%
47%33%
2009
15%
54%
31%
2015
20
21
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
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
23
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
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
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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
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
Q&A
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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