UBM CAPITAL MARKETS DAY

Transcription

1 UBM CAPITAL MARKETS DAY

2 Capital Markets Day Introduction Disclaimer This presentation contains statements which are not based on current or historical fact and which are forward looking in nature. These forward looking statements reflect knowledge and information available at the date of preparation of this presentation and the Company undertakes no obligation to update these forward looking statements. Such forward looking statements are subject to known and unknown risks and uncertainties facing the Group including, without limitation, those risks described in this presentation, and other unknown future events and circumstances which can cause results and developments to differ materially from those anticipated. Nothing in this presentation should be construed as a profit forecast. 01

3 Capital Markets Day Introduction Agenda Introduction EMEA Americas Tim Cobbold & Marina Wyatt John van der Valk & Chris Kilbee Scott Shulman & Mike Alic 14:00 14:15 14:15 14:45 14:45 15:15 Booth Visits Living Events First 15:15 16:00 Asia Closing Remarks & Q&A Jime Essink & Ian Roberts 16:00 16:30 Tim Cobbold 16:30 16:45 Drinks + Further Booth Time 16:45 17:45 2

4 Capital Markets Day Introduction Context for the day No selective disclosure No update on current trading Financial Information reflects the way divisions operate and collaborate No specific financial detail on individual events 3

5 Capital Markets Day Introduction Events First focus on shareholder value Growth The world s leading B2B events company Attractive margin Best platform Reshaping UBM Revenue 26% 16% 22% 5% 16% Adjusted Operating Profit* 8% 58% 84% 73% 92% Exiting 2013 Exiting 2016** Exiting 2013 Exiting 2016** PRN OMS Events Adjusted operating profit margin* 23.5% 27.2%*** Attractive market and strong UBM position UBM Commitments FOCUS Accelerating organic growth Further margin improvement 4 * Operating profit excluding amortisation of intangible assets arising on acquisitions, exceptional items and share of taxation on joint ventures and associates ** Pro-forma for Allworld 2016 *** 2016 continuing (excluding Allworld)

6 Capital Markets Day Introduction Living Events First Accelerating Growth & Improving Margin Majors focus* Regional breadth* Sector diversity* 14% EMEA & ROW 16% North America 38% Resources 4.1% Transport & Logistics 6.3% Technology 10.1% Adv Manuf 8.6% Bus Services & Infras 8.0% 783m** Pharma & Bio 9.9% Fashion 17.0% 86% Emerging Markets 46% Lifestyle & Brands 11.7% Life Sciences & Healthcare 3.5% Food, Hospitality & Leisure Jewellery & Gem 12.1% 8.7% Growth Attractive margin Best platform Agile growth Customer insight and innovation Operational Excellence Standardised technology & data High performance culture 5 * Events (biennials averaged over 2 years) including Allworld

7 John van der Valk MD, UBM EMEA Amsterdam Chris Kilbee Group Brand Director, Pharma

8 Capital Markets Day UBM EMEA Today s team John van der Valk Managing Director UBM EMEA Amsterdam Chris Kilbee Group Brand Director, Pharma UBM EMEA Amsterdam 4 years with UBM as MD of Amsterdam Member of EMEA Board 20 years experience in the Events and wider Media Industry MD for VNU Exhibitions Europe GM Nielsen Business Media in NY VP Corporate Development VNU/Nielsen 14 years with UBM 4 years UBM Amsterdam 10 years UBM EMEA Built Environment MD of BE Media - Group Director of Property - Commercial Director, Property 4 years with The Builder Group 7

9 Capital Markets Day UBM EMEA Reshaping EMEA for growth Revenues* 206m 35 major annuals 8 major biennials 2016 revenues** Events OMS Events OMS OMS increasingly aligned 8 * Revenue figures including ijvs ** Revenue figures include ijvs and biennials have been averaged over L2Y

10 Capital Markets Day UBM EMEA Strong brands serving a diverse portfolio of sectors and geographies Pharma & Biochem Sectors Geography Business Services & Infrastructure Food, Hospitality & Leisure 2016 Revenues* 2016 Revenues* Transport & Logistics Pharma & Biochem. Business Services & Infrastructure. Food, Hospitality & Leisure. Transport & Logistics. Other Europe UK Middle East Other 9 * Revenue figures include ijvs and biennials have been averaged over L2Y

11 Capital Markets Day UBM EMEA UBM EMEA key priorities Drive organic growth at Pharma & Food Sales & Marketing Excellence Improve efficiency in UK High-quality bolt-on opportunities 10

12 11 UBM s Pharma portfolio

13 Capital Markets Day UBM EMEA Pharma A key market for UBM Global Pharma Market ($bn) 1, , CAGR Total 4.4% MEA 7.0% E. Europe 7.0% W. Europe 2.7% Asia 5.4% Americas 4.0% Pharma & Biochem: 44% of EMEA 12% of UBM Global Health expenditure to reach $9,689bn by 2021, 5.4% CAGR Global Pharma grew by 4.4% CAGR ( ) UBM Pharma grew by 11.5% CAGR ( ) 12 Source: Business Monitor International Worldwide Pharmaceutical Market Forecasts 2016

14 Capital Markets Day UBM EMEA Growth through supply chain coverage Fine & Specialty Chemicals Major exhibitors Drug Discovery Drug Development Manufacturing Ingredients Manufacturing of Finished Dosage Major visitors Packaging & Machinery Contract services 13

15 Capital Markets Day UBM EMEA Growth through geographic expansion

16 Capital Markets Day UBM EMEA Case studies: New Launches Enhanced customer insight and market research Greater discipline with new launch activity Launched at CPhI Worldwide in 2016 Market expected to grow at 8.7% CAGR from 2015 to 2020 Attractive segment for API manufacturers FDF growing faster than market in 2016 and 2017 Global roll-out plan in place US is the largest Pharma market Market expected to grow at 4% CAGR Competitive market but no platform for the whole value chain Leveraging the reach of Life Sciences New launch process 15

17 Capital Markets Day UBM EMEA Quality visitors deliver ROI for our exhibitors CPhI Worldwide Statistics 71% OF ALL VISITORS HAVE PURCHASING POWER CEO/ COO/ President/ Board Director Manager with Staff Senior Management REGIONAL SPLIT 57% 43% EUROPE ROW 25% Manager without Staff 13% 1-in-3 PURCHASES WILL BE INFLUENCED BY A VISIT TO CPhI WORLDWIDE 23% 21% 16% Non management 15% AT CPhI WORLDWIDE 3.1m AVERAGE ANNUAL BUDGET PER DEPARTMENT 16

18 Capital Markets Day UBM EMEA Growth through experience improvements New Brand leaders Customer Insight Content teams to drive engagement Supplier Finder tool 62k searches in 3 days at CPhI Worldwide an enabler for visitor and exhibitors Customer Services and Sales Ops teams Sales account management Touchplan improving rebook experience 17

19 Capital Markets Day UBM EMEA UBM EMEA key priorities Drive organic growth at Pharma & Food Sales & Marketing Excellence Improve efficiency in UK High-quality bolt-on opportunities Organic growth + margin improvement 18

20 UBM Americas Living Events first Scott Schulman CEO, UBM Americas Mike Alic Head of Fashion

21 Capital Markets Day UBM Americas Today s team Scott Schulman CEO UBM Americas Mike Alic MD of Fashion UBM Americas 25+ years working in information industries Booz Allen Hamilton consulting Dow Jones Wall Street Journal Factiva Rodale B2B and B2C business portfolios across all media formats, digital, events; also had leadership roles in sales, marketing and strategy 23 years working in information and events industries, including 10 years with Advanstar prior to UBM acquisition Key player in building the fashion portfolio Part of team responsible for integrating Advanstar into UBM 20

22 Capital Markets Day UBM Americas UBM Americas the market leader US B2B Exhibitions Market Share Revenues* $589m 1,325 employees 3 countries 20 offices Informa Reed Exhibitions Emerald UBM 21 Source: AMR 2016 Globex Report * 2016 including ijvs

23 Capital Markets Day UBM Americas Growth through acquisition Revenues* $589m 57 major annuals 1 major biennials 2016 Revenues** Events OMS OMS - Life Sciences Now all OMS aligned except Life Sciences 22 * $ revenue figures including ijvs ** Revenue figures include ijvs and biennials have been averaged over L2Y

24 Capital Markets Day UBM Americas Strong in major sectors Fashion 2016 Revenues* Tech Life Sciences Fashion. Technology. Life Sciences & Healthcare. Advanced Manufacturing Advanced Manufacturing. Business Services & Infrastructure. Other Brazil.. Mexico 23 * Revenue figures include ijvs and biennials have been averaged over L2Y

25 Capital Markets Day UBM Americas UBM Americas key priorities Exploiting scale & unifying the business Pivoting to growth at individual event level Responding to changes in Fashion market Implementing EF at operational level High-quality bolt-on opportunities 24

26 Capital Markets Day UBM Americas Exploiting strength in growth sectors Tech Advanced Manufacturing 25

27 Capital Markets Day UBM Americas Pivoting to growth & driving performance Agile growth Customer insight and innovation Operational Excellence Standardised technology & data High performance culture Event plans Bolt-on acquisitions Enhanced market understanding Event experience Optimising CRM platforms Web-platform standardisation Unified organisation Geo-adapts Platform for rapid integration of acquisitions Sales Excellence 26

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29 Capital Markets Day UBM Americas Critical to the fashion industry 28

30 Capital Markets Day UBM Americas Our strong market position Women s Leader in all major segments 6 7x larger than next competitor Men s Footwear Sourcing New York, Las Vegas 24 show brands, 61 shows in 10 annual marketplaces 18k exhibitors, 210k attendees annually 29

31 Capital Markets Day UBM Americas US Fashion A large and changing market Total Fashion Market* Apparel Sales only by type 2017F CAGR F Total 380 2% vs 15 Specialty stores 104 1% Total 213 2% Family clothing stores 105 1% Brands via wholesale 52% 3% Department stores 67-3% Brands direct to consumer 10% 9% Warehouse clubs & superstores Online retail USD billions % 14% Retail private label 38% -1% 30 Sources: IBIS World, NPD, UBM estimates, * Apparel, accessories, and footwear

32 Capital Markets Day UBM Americas Opportunity to grow Exhibitors Visitors Proportion of US enterprises who attend UBM Fashion Events 23% 14% 14% 24% 20% Women's Men's Footwear Apparel, accessories, & footwear retailers Online retailers Brands Total # of US enterprises: 20,000 11,000 7, ,000 11, Sources: UBM data, US Commerce Department, Internet Retailer. Online retailers = estimate of pure-play online retailers who sell apparel, accessories or footwear.

33 Capital Markets Day UBM Americas How we are responding Leveraging our leadership position Deepening market penetration Children s Outdoor & active Online retailers Improving relevance Education Content Exploiting growth opportunities Adjacent opportunities Home, beauty and lifestyle International Inspiration Fashion = Challenging but opportunities available 32

34 Capital Markets Day UBM Americas UBM Americas key priorities Exploiting scale & unifying the business Pivoting to growth at individual event level Responding to changes in Fashion market Implementing EF at operational level High-quality bolt-on opportunities Organic growth + margin improvement 33

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36 Capital Markets Day Interval Booth Visits 45 mins 35

37 Jime Essink CEO, UBM Asia Ian Roberts MD, Allworld

38 Capital Markets Day UBM Asia Today s team Jime Essink CEO UBM Asia Ian Roberts Joint MD, UBM Allworld Dutch national, based in Hong Kong 25 years experience in event industry 7 years as MD Miller Freeman Netherlands (now UBM EMEA) 9 years as MD and CEO of VNU Exhibitions Europe and VNU Exhibitions Asia 9 years as CEO of UBM Asia 20 years with Allworld 7 years as MD in Malaysia 5 years as MD in Indonesia 4 years as MD of Allworld Group Now responsible for Allworld SE Asia Moving back to Singapore 37

39 Capital Markets Day UBM Asia UBM Asia - the clear market leader Emerging Markets B2B Exhibitions Market Share Revenues* $486m 1,600 employees 14 countries 26 offices Global Sources Allworld Dragon Messe Frankfurt HKTDC CFTC Reed UBM Asia 38 Source: BSG The Trade Fair Industry in Asia 2016, AMR Globex 2016, Messe Frankfurt Annual Report Reed Exhibitions revenue above reflects total Reed events revenue in Emerging Markets. CCPIT (ranked by BSG as the 6 th largest operator in Asia) revenue not available and therefore not presented above. * 2016 including Allworld & ijvs

40 Capital Markets Day UBM Asia Strong growth record Revenues* $486m 53 major Annuals 24 major biennials 2016 Revenues** * $ revenue figures including ijvs Events OMS Allworld Events OMS Very little OMS 100% aligned ** Revenue figures include ijvs and Allworld, and biennials have been averaged over L2Y

41 Capital Markets Day UBM Asia UBM Asia key priorities Maximise growth from high-growth geographies & sectors High-quality bolt-on opportunities Sales & Marketing Excellence Complete Allworld integration 40

42 Capital Markets Day UBM Asia High-growth geographies 2016 Revenues* Bahrain China India Middle East Japan SE Asia Other 41 * Revenue figures include ijvs and Allworld and biennials have been averaged over L2Y

43 Capital Markets Day UBM Asia Long-term growth sectors Lifestyle 2016 Revenues* Jewellery Lifestyle & Brands Jewellery & Gem Food, Hospitality & Leisure Pharma & Biochem Advanced Manufacturing Resources Other Food, Hospitality & Leisure Pharma & Biochem 42 * Revenue figures include ijvs and Allworld and biennials have been averaged over L2Y

44 Capital Markets Day UBM Asia Top events positioned for growth Innovative new space expansion Response to competition made us stronger 43

45 Capital Markets Day UBM Asia Events First in Action: Driving growth & improving margin Agile growth Customer insight and innovation Operational Excellence Standardised technology & data High performance culture Allworld acquisition Event plans Discontinued /stopped 30 events Discipline around new launches Further bolt-on opportunities Standardised framework and KPI s for customer survey Improve customer experience based on outcomes customer journey mapping Alibaba pilots Marketing Excellence training Standardising sales process Sales Excellence training Cleaving events Procurement project begun in HK Planning of salesforce deployment Enhanced use of Oracle MI New LT incentives 44

46 Capital Markets Day UBM Asia Allworld an attractive acquisition Strategic rationale Geographic fit Sector fit Growth profile 7.3% CAGR last 10 Years AW Singapore Food, Hospitality & Leisure excellent Perfect strategic fit Attractive returns - Investment as expected - Synergy confidence - Integration on track China & HK + Indonesia Middle East Malaysia Thailand Vietnam Myanmar South Korea Advanced Manufacturing Resources - O&G Tech Jewellery excellent New Some Good 45

47 Capital Markets Day UBM Asia Allworld a quality portfolio Geography Sector International 13% 20% 7% 4% 17% 2016 Revenues* 12% 2016 Revenues* 38% 44% 2016 Revenues* 56% 10% 24% 17% 16% 20% China & HK Singapore Indonesia Malaysia Rest of SE Asia Middle East 46 * Biennials have been averaged over L2Y Food, Hospitality & Leisure Resources Advanced Manufacturing Business Services & Infrastructure Technology Jewellery & Gem Lifestyle & Brands International Local

48 Capital Markets Day UBM Asia Key brands in the portfolio Food, Hospitality & Leisure Advanced Manufacturing Oil & Gas Technology 47

49 Capital Markets Day UBM Asia Opportunities to enhance growth Leverage of UBM Brands: Expansion of Food and Hotel Portfolio Leverage of UBM Infrastructure and Resources: Global Database/Network Access Leverage of UBM Expertise: Value Based Pricing Implementation 48

50 Capital Markets Day UBM Asia Integration on track Detailed plans - Implementation on track - New ideas Delivering ROI 49

51 Capital Markets Day UBM Asia UBM Asia key priorities Maximise growth from high-growth geographies & sectors High-quality bolt-on opportunities Sales & Marketing Excellence Complete Allworld integration Organic growth + margin improvement 50

52 51 Presentation Title

53 Capital Markets Day Closing remarks Events First Confidence for the future Events Industry Attractive growth dynamic 92% Events Quality Portfolio 2017 & beyond Accelerating organic growth Consolidation opportunities Geog. Sector Further margin improvement High margins Strong cash flow EVENTS FIRST Allworld integration 52

54 Presentation Title

55 Capital Markets Day - Appendix Total Group Revenue 931m Revenue 2016 m Division ** - Americas Asia EMEA ijv elimination (76) Total Group 863 Allworld*** 68 Total Group inc Allworld * Events OMS Allworld * Revenue figures include AllWorld ** Please note divisional revenues do not marry up with usual geographic disclosure *** Proforma 2016 calendar year revenues