Informa Plc · LSE:INF
Informa — Corporate Update (May 2013)
34 slides from Informa's corporate update, May 16, 2013
Slide 1: Analyst visit to Vitafoods
Analyst visit to Vitafoods May 16th 2013 Peter Rigby Adam Walker Richard Menzies-Gow Chief Executive Finance Director Investor Relations peter.rigby@informa.com adam.walker@informa.com richard.menzies-gow@informa.com 1
Slide 2: Timetable for the visit
Timetable for the visit • 10.30-11.30: Informa Events presentation – Adam Walker • 11.30-12.00: Vitafoods presentation – Peter Hall • 12.00-13.00: Vitafoods tour – Chris Lee • 13.00-14.00: Wrap up and lunch • 14.00: Finish 2
Slide 3: Informa Events
Informa Events Adam Walker Finance Director Informa plc 3
Slide 4: Informa Group financial summary
Informa Group financial summary • 2012 FY results • 7.7% EPS growth to 40.7p • 10.1% DPS growth to 18.5p • Net debt / EBITDA 2.1x • 18% of group revenue from EM • Q1 2013 trading as anticipated • Organic decline -3.6% • Flat underlying revenue growth • FY expectations unchanged 4
Slide 5: Informa Events & Training
Informa Events & Training Revenue by product 2012 • 2012 organic decline of 3% • Large events grew high single-digit • Small conference volume reduction • Corporate training weak • 27% of revenue emerging markets • Margin mix • Large events: high 20’s percent • Small conferences: single-digit to hig
Slide 6: Global event market
Global event market Global exhibition market split by region • Annual global exhibition market (Source: CEIR, AMR) • >30k exhibitions • 2.8m direct exhibiting companies Source: CEIR • 260m visitors Global exhibition organisers market share • Organiser revenue >£26bn Reed GL Events Messe Frankfurt •
Slide 7: Global event market: long-term attractions
Global event market: long-term attractions US B2B marketing spend • Digitisation has impacted frequency 35 30 and quality of customer engagement 25 20 • Value of face-to-face (F2F) 15 10 interaction has risen 5 0 • Marketing investment must now be 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2014F
Slide 8: Global event market: long-term attractions
Global event market: long-term attractions • Expansion of global exhibition space Increase in global exhibition space • Fragmentation = consolidation potential Number Total indoor of venues exhibition space • Economic value-add of events 2011 Increase since 2006 1197 +57 32.6m SQM +3.4m SQM (+12%) •
Slide 9: Informa Events: evolution of mix
Informa Events: evolution of mix Informa total event volume • Origins in small conferences 15000 • Challenge of managing the cycle 10000 • Acquisition of IIR in 2005 added 5000 significant expertise in large events 0 2007 2008 2009 2010 2011 2012 • Downturn accelerated a managed Informa Events reven
Slide 10: Dynamics of large events
Dynamics of large events Cumulative cash cycle of an exhibition • Exhibitions are transaction-led 2nd stage payment & venue payment • Difficult to establish First stage payment £000's Deposits paid • High barriers once established Visitor promotion On-site stand construction • Strong revenue visibil
Slide 11: Informa Events: large events
Informa Events: large events • >250 large events in 2012 Top 15 events in 2012 (alphabetical order) • 55 events >£1m revenue in 2012 Event ABF Franchising Sector Finance Location Sao Paulo Africa com TMT Cape Town • 44% E&T revenue from large events Anti-Aging Medicine W. Congress Healthcare Monaco
Slide 12: Dynamics of small conferences
Dynamics of small conferences • Conferences are content-led • Easy to launch • Lower barriers to entry • Often one-off events • Lower margin potential • Attractive cash dynamics • ROI more difficult to measure • Content focus and quality of speakers is key • Essential for developing the large events
Slide 13: Informa Events: geographic evolution
Informa Events: geographic evolution Events & Training revenue split 2012 • Global event reach North Emerging America • Emerging markets c27% of E&T markets 27% 25% revenue (FTSE classification) • Emerging markets >33% of events Other 14% Europe UK 26% revenue & >40% of large events 8% Key events bu
Slide 14: Informa Events: Launches and geo-cloning
Informa Events: Launches and geo-cloning • Aggressive schedule of new Geography of new launches & geo-clones: 2011/2 ROW UK Other launches & geo-clones each year emerging 6% 8% Europe 8% North markets 20% America • 19 in 2011 and 17 in 2012 6% Latam • Vitafoods South America 6% UAE 20% Asia • Cross
Slide 15: Informa Events: M&A trends
Informa Events: M&A trends • Global exhibition market highly Recent track record of events acquisitions fragmented Number of Average EBITDA 1st year tax deals multiple paid (x) adjusted ROI (%) 2010 9 6.2 12.4 • Competition for assets not as fierce as 2011 6 7.0 10.9 2012 4 6.1 12.6 one might think
Slide 16: Informa Events: Brazil case study
Informa Events: Brazil case study • Small conference business since 1990’s • Buy and build strategy on large events • Acquisition of BTS and Ibratexpo in 2011 • Portfolio of leading exhibitions • Food, furniture, franchising, printing etc • Close to £100m investment into the region • Now one of the
Slide 17: Brazil: Agrishow 2013
Brazil: Agrishow 2013 • Food sector booming in Brazil • Largest agricultural show in Latam • >400k sqm gross / 240k sqm net • >120,000 visitors from 67 countries • BRL 3bn of credit letters issued pre-show 17
Slide 18: Informa Events: vertical strength
Informa Events: vertical strength • Industry health a key growth driver for an exhibition • Focus on multi-platform strength across industry verticals • Global reach through geo-cloning and digital publishing • Leverage knowledge, contacts, brands across the group • Vertical strengths: Top 20 events
Slide 19: Agri-Food & Commodities
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Slide 20: Anti-Aging & Beauty
Anti-Aging & Beauty BEYOND. BEAUTY EVENTS ¢@ EuroMediCom Vitafoods The global nutraceutical event 14-16 May 2013 Geneva EUROPE BEYOND BEAUTY EVENTS EXHIBITION & CONGRESS 1 * ANTI-AGING MEDICINE WORLD CONGRESS Aesthetic Dermatology and Surgery Preventive and Anti-Aging Medicine, Medical Spa MONTE CAR
Slide 21: Telecoms & Media
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Slide 22: Future ambitions for Informa Events
Future ambitions for Informa Events • Leverage vertical strengths • Leverage scale opportunities • Leverage economic value of events • Leverage data, technology and customer relationships • Conference format innovation – improve attendee experience • Event websites, booking, registration, social med
Slide 23: Summary
Summary • Events is a core business for Informa • Deep expertise across large events and conferences • Rebalancing of the portfolio is ongoing • Attractive M&A opportunities • Exciting emerging markets opportunity • Multi-platform vertical strength is a competitive advantage • Quality of earnings im
Slide 24: Vitafoods Overview
Vitafoods Overview 16th May 2013 Peter Hall Managing Director peter.hall@informa.com 24
Slide 25: What is Vitafoods?
What is Vitafoods? • Nutraceutical not Pharmaceutical Food ingredients Nutraceuticals • Key issues: • Obesity, ageing, heart health • Key drivers: • Affluent consumer, education / awareness, rising healthcare costs • Market predictions: • Growth at 7% until 2015 to $48.8bn (Source: Datamonitor) 25
Slide 26: Visitor profile
Visitor profile Ingredients and raw materials Dietary supplements Pharmaceuticals Health food Food and beverages Natural & herbal medicines Cosmetic & body products Animal nutrition Other (Allowing for multiple responses) Manufacturer 45% @ Distributor 32% @ import/export 20% © Research /scientific
Slide 27: Visitor profile
Visitor profile Top 10 visitor interest areas (Allowing for multiple responses) ACave Viternins Antioxidants «= “progucs’ = “feeds = 308% 275% 268% 23.8% 2 ® Sh \ informa bringing knowledge to life
Slide 28: The Vitafoods Team
The Vitafoods Team • Portfolio Director • Sales team • 6 UK, 1 Singapore • Marketing team • 5 UK, 1 Singapore, 2 Brazil • Operations Manager • FTE = 17 • Group Revenue >£5m • Profit Margin >50% 28
Slide 29: Key milestones
Key milestones • 1997 – Vitafoods launched • 1999 – Vitafoods moved to Palexpo, Geneva • 2003 – Vitafoods acquired by IIR / Informa – Revenue (<£1m) • 2003 – Vitafoods Conference launched • 2005 – FPE launched as a feature area within Vitafoods • 2006 – FPE launched as a separate show co-located wit
Slide 30: Floor plan evolution since Vitafoods moved to Palexpo
Floor plan evolution since Vitafoods moved to Palexpo 2013: 600 exhibitors 12,000 visitors from 91 countries 30
Slide 31: Vitafoods revenue growth since acquisition
Vitafoods revenue growth since acquisition • 90% of visitors rate VF excellent or good • 92% of exhibitors objectives met or exceeded • €347,000 = av. Sales per exhibitor GBP '000 Vitafoods FPE Combined 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 31
Slide 32: The Future
The Future • Strong Vitafoods rebookings for 2014 • Vitafoods South Africa • Russia • Confexes • Publishing / Editorial • Pet • Beauty 32
Slide 33: Vitafoods – Guided tour
Vitafoods – Guided tour Chris Lee Portfolio Director Informa IIR Exhibitions 33
Slide 34: Thank you.
Thank you. 34