Gl Events Sa · EURONEXT:GLO
Gl Events Sa — H1 2015 Earnings Presentation
48 slides from Gl Events Sa's earnings presentation, Sep 2, 2015
Slide 1: 2015 First-Half Results
EXPO MILANO 2015 2015 FIRST‐HALF RESULTS 1St HALF RESULTS / 2 SEPT 2015 / 1 2 SEPT. 2015
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared solely for information purposes, as a supplement to information rendered public elsewhere by GL events, to which readers are invited to refer. This presentation is not intended to be and shall not be construed as a solicitation or offer to buy or sell s
Slide 3: H1 Highlights
H1 HIGHLIGHTS Growth in first‐half sales (+0.5%) Very dynamic positions in France (+23%) and Europe (excluding France +11%) Continuing growth by business units : Venues: +12.9%; Exhibitions: +27.5% Operating margin above 8% in H1 PROFITABLE AND SUSTAINABLE GROWTH H1 2015 RESULTS
Slide 4: Excellent Momentum in First Half
EXCELLENT MOMENTUM IN FIRST HALF
Slide 5: Group Business Performance
GROUP BUSINESS PERFORMANCE H1 sales growth, coming after a 2014 first half that included €74m in revenue from the Football World Cup Limited translation/currency effects in H1 (€4.3m) Change Change Consolidated 2015 2014 2015 2014/201 2014/201 revenue(€m) (cc*) 5 5 (cc) Q1 219.3 250.2 247.4 +14.
Slide 6: Growth from the Live BU, excluding the Football World Cup effect
GROWTH FROM THE "LIVE" BU, EXCLUDING THE FOOTBALL WORLD CUP EFFECT Change Consolidated revenue(€m) 2014 2015 2014/2015 Q1 98.3 102.0 +3.8% Q2 159.2 119.6 -24.9% TOTAL 6 months 257.5 221.6 -14.0% Contraction contained in H1, with this business unit accounting for the entire 2014 base effect from th
Slide 7: Expo 2015 Milan
EXPO 2015 MILAN PRODUCTION AND MANAGEMENT OF PAVILIONS CUSTOMERS: Pavilions of Gabon, Morocco and France: boutique and restaurant management H1 2015 RESULTS
Slide 8: 2015 Toronto Pan-American Games
2015 TORONTO PAN‐AMERICAN GAMES CUSTOMER: ORGANIZING COMMITTEE • SERVICES: 34 sites equipped including the Olympic Village kitchen facilities H1 2015 RESULTS
Slide 9: Peru – IMF 2015
PERU – IMF 2015 MANAGEMENT OF THE EVENT, INSTALLATIONS, FURNITURE H1 2015 RESULTS
Slide 10: Solid Position of the Exhibitions Business Unit
SOLID POSITION OF THE "EXHIBITIONS" BUSINESS UNIT Change Consolidated revenue (€m) 2014 2015 2014/2015 Q1 63.1 82.0 +30.1% Q2 15.4 18.1 +16.9% TOTAL 6 months 78.5 100.1 +27.5% A particularly dynamic first quarter driven by the Lyon edition of SIRHA The Salon Industrie edition with growth of >10%
Slide 11: Be Positive / Lyon Eurexpo
BE POSITIVE / LYON EUREXPO H1 2015 RESULTS
Slide 12: Agromashexpo / Hungexpo
AGROMASHEXPO / HUNGEXPO H1 2015 RESULTS
Slide 13: Auto Moto Retro / Lingotto
AUTO MOTO RETRO / LINGOTTO H1 2015 RESULTS
Slide 14: Boat Show / Hungexpo
BOAT SHOW / HUNGEXPO H1 2015 RESULTS
Slide 15: Expo Casa / Lingotto Turin
EXPO CASA / LINGOTTO TURIN H1 2015 RESULTS
Slide 16: Continuing Growth from the Venues Business Unit
CONTINUING GROWTH FROM THE "VENUES" BUSINESS UNIT Change Consolidated revenue (€m) 2014 2015 2014/2015 Q1 57.9 66.2 +14.3% Q2 70.7 79.0 +11.7% TOTAL 6 months 128.7 145.2 +12.9% Q2 2015: Fourth consecutive quarter of double‐digit growth Bolstered by Strasbourg Evènements' integration in the Group
Slide 17: David Guetta / Riocentro
DAVID GUETTA / RIOCENTRO 1St HALF RESULTS / 2 SEPT 2015 / 17
Slide 18: Convention Coffely / Palais Brongniart
CONVENTION COFFELY / PALAIS BRONGNIART 1St HALF RESULTS / 2 SEPT 2015 / 18
Slide 19: Art & Design Fair / Congresium Ankara
ART & DESIGN FAIR / CONGRESIUM ANKARA 1St HALF RESULTS / 2 SEPT 2015 / 19
Slide 20: Noivias & Fiestas / Sao Paulo Expo
NOIVIAS & FIESTAS / SAO PAULO EXPO 1St HALF RESULTS / 2 SEPT 2015 / 20
Slide 21: Symphony of Games / La Mutualité
SYMPHONY OF GAMES / LA MUTUALITÉ 1St HALF RESULTS / 2 SEPT 2015 / 21
Slide 22: Profitable Growth
PROFITABLE GROWTH
Slide 23: Operating Margin Above 8%
OPERATING MARGIN ABOVE 8% H1 2014 €m H1 2015 Change restated* REVENUE 466.9 464.7 +0.5% Stable after H1 2014 marked by the Football World Cup effect (H1 2014: +8.6% vs. H1 2013) – PURCHASES AND EXTERNAL CHARGES (288.9) (285.8) +1.1% Development of subcontracting within the Group TAXES AND SIMILAR PA
Slide 24: Operating Margins by Business Unit
OPERATING MARGINS BY BUSINESS UNIT ▸ GL events Live: A base effect from the Football World Cup ‐ Operating margin slightly higher than in H1 2013 ▸ GL events Exhibitions: Bolstered by Sirha’s Lyon edition, growing contributions from the sites, margin up vs. H1 2013 ▸ GL events Venues: Strong revenue
Slide 25: Net Income Above €20m
NET INCOME ABOVE €20m H1 H1 2014 €m Change 2015 restated* GROUP OPERATING PROFIT 38.2 37.3 +2.5% NET FINANCIAL EXPENSE (6.4) (5.4) Debt mix Euro/Brazil GROUP PROFIT BEFORE INCOME TAX 31.9 31.9 - Income tax (10.8) (11.2) - Country effect mix NET INCOME OF FULLY 21.1 20.8 +1.6% CONSOLIDATED COMPANIES
Slide 26: Financial Structure
FINANCIAL STRUCTURE
Slide 27: Cash flow / sales: 7.9%, in line with recent Group standards
Cash flow /sales: 7.9%, in line with recent Group standards ▸ Change in WCR for Live (Cop20) and Exhibitions (Sirha), Net Source of Funds (negative WCR) stable at €91m ▸ Capital expenditures in the period of approximately €90m. Strategic decision to accelerate planning for construction/renovation of
Slide 28: A Solid Financial Structure
A SOLID FINANCIAL STRUCTURE • "Current" business-line related assets for events generating a net source of funds of €91.3 million, • and long-term assets for concessions (30- to 50-year terms) 2.85 at 31/12/201 31/12/2014 (€m) 30/06/2015 (€m) 4 Intangible assets Intangible assets Shareholders' 488.2
Slide 29: 1/3 of Debt Linked to Long-Term Assets
1/3 OF DEBT LINKED TO LONG‐TERM ASSETS €m Reported net debt (gearing 84%) 325.2 Work on Palais Brongniart (30 years) 10.4 Metz renovation work (30 years) 7.5 €122m Riocentro exhibition & convention centre (50 years) 23.9 Hôtel Rio (50 years) 47.5 São Paulo exhibition centre (30 years) 33.0 Net debt
Slide 30: Optimise the Turnover of Assets
OPTIMISE THE TURNOVER OF ASSETS Strategic decisions in the first half to set aside certain assets to be deployed for large events in the future ROCE: 5.8% in H1 2015 vs. 4.9% in H1 2014 Excluding the Rio Centro hotel and first outflows of Sao Paulo, the ROCE was 6.5% in H1 2015 vs. 5.3% in H1
Slide 31: Environment & Markets
ENVIRONMENT & MARKETS
Slide 32: A Favourable International Environment
A FAVOURABLE INTERNATIONAL ENVIRONMENT Regions with strong economic growth GDP 2015 2016 World +3.3% +3.8% Advanced economies +2.1% +2.4% US +2.5% +3% Euro Zone +1.5% +1.7% 82% of France +1.2% +1.5% revenue Italy +0.7% +1.2% Spain +3.1% +2.5% Emerging markets & +4.2% +4.7% developing economies Eme
Slide 33: Solid Business Drivers
SOLID BUSINESS DRIVERS Exhibitions, still with significant potential for "Trade show" media establishing its role as a development vehicle for generating business opportunities In France (approximately 50% of Group revenue), Average = 0.054% trade shows and consumer fairs (Médiamétrie / June 2
Slide 34: In Markets with Strong Barriers to Entry
IN MARKETS WITH STRONG BARRIERS TO ENTRY GL events, today a world‐class event services provider An established track record and reputation for technical know‐how The strength of a strategically targeted international network of operating bases A solid track record for every category of servi
Slide 35: Bases of Operations in Brazil Providing Potential for Sustainable Business Volume
BASES OF OPERATIONS IN BRAZIL PROVIDING POTENTIAL FOR SUSTAINABLE BUSINESS VOLUME. A firm commitment from governmental bodies to stimulate the trade show and consumer fair industry for "business development", "promoting local know‐how with international Groups" and the "dissemination of knowledge"
Slide 36: In Brazil, 2016 and Beyond
IN BRAZIL, 2016 AND BEYOND Secure revenue streams for BRL 500 from the Rio and Sao Paulo sites over the next three years from a mix of: Exclusive negotiations for projects with the organizer, participating countries and partners Important contracts signed for the provision of temporary install
Slide 37: Brazil – Rio 2016
BRAZIL – RIO 2016 RIOCENTRO, A MAJOR REGIONAL HUB FOR EVENTS H1 2015 RESULTS
Slide 38: Brazil – Rio 2016
BRAZIL – RIO 2016 RIOCENTRO, A MAJOR REGIONAL HUB FOR EVENTS H1 2015 RESULTS
Slide 39: Brazil – Rio 2016 – Test Events 2015
BRAZIL – RIO 2016 – TEST EVENTS 2015 SECURITY, CLEANING, F&B, SIGNAGE, AUDIO SYSTEMS CUSTOMER: CORIO (ORGANISING COMMITTEE) CUSTOMER: NBA HOUSE/OCTOGON •SERVICES: SHOW ROOM EQUIPMENT & FLOOR/WALL COVERINGS H1 2015 RESULTS
Slide 40: Brazil – Rio 2016: Contracts Signed or Being Finalized
BRAZIL – RIO 2016 CONTRACTS SIGNED OR IN THE PROCESS OF BEING FINALIZED CUSTOMER: CORIO •CONTRACT / REVENUE: STRUCTURES AND HOSPITALITY SERVICES PAVILION 6 F&B HOSPITALITY SERVICES IBC FURNITURE TENTS AND A/C NBA HOUSE RIOCENTRO OVERLAYS BBC, HOTEL H1 2015 RESULTS
Slide 41: Brazil – Rio 2016: Potential for Additional Contracts
BRAZIL – RIO 2016 POTENTIAL FOR ADDITIONAL CONTRACTS CUSTOMER: CORIO • FURNITURE / ATHLETES VILLAGE • FURNITURE & IFF FOR VENUES • HOSPITALITY SERVICES / FOOTBALL HOST CITIES • GRANDSTANDS • COMPANY TRANSPORTATION SERVICES CUSTOMER: RIO URBE • GRANDSTANDS / DEODORO SITE CUSTOMER: RIO DE JANEIRO CITY
Slide 42: Outlook & Guidance
OUTLOOK & GUIDANCE
Slide 43: Outlook
OUTLOOK Excellent commercial momentum driven by a balanced mix of products, businesses and geographic exposures Steady double‐digit growth from the Venues and Exhibitions business units A Live business unit bolstered by a reputation for event industry expertise and a calendar still offering a
Slide 44: Guidance
GUIDANCE 2015, another year of growth with a significant line‐up of events in the second half for all three business units GROWTH IN 2015 ACCOMPANIED BY CONTINUING COST EFFICIENCY MEASURES AND FOR 2016, EXPECTATIONS FOR EXCEEDING THE MILESTONE OF €1 BILLION IN REVENUE. H1 2015 RESULTS
Slide 45: Key Stock Market Data
KEY STOCK MARKET DATA
Slide 46: Share Price & Trading Activity / Dividend
SHARE PRICE & TRADING ACTIVITY /DIVIDEND Year 2013 2014 2015 Dividend per €0.60 €0.60 €0.60* share Share yield: 3.3%* * At 04/07/15, payment date H1 2015 RESULTS
Slide 47: Key Stock Market Data
KEY STOCK MARKET DATA Polygone SA NUMBER OF SHARES 22,653,920 Free float 50.5% (At 30/06/2015) 32.3% ISIN code: FR0000066672 Symbol: GLO Main index: CAC All shares Market: Segment B (Mid Caps) (Euronext Paris) CM‐CIC Eligibility for French Personal Equity Savings Plans Capital PEA/PEA‐PME): Yes Fina
Slide 48: 2015 First-Half Results
EXPO MILANO 2015 2015 FIRST‐HALF RESULTS 2 SEPT. 2015 1St HALF RESULTS / 2 SEPT 2015 / 48