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An Introduction to Hyve Group plc
December 2019
› Our Senior Executive team p3
› Our business model p4
› Market overview p7
› 2017 strategic review p10
› Transformation delivered p18
› TAG financials p30
› FY19 results p39
› Appendices p46
Contents
/ 2Introduction to Hyve Group plc – December 2019
/ 3Introduction to Hyve Group plc – December 2019
Mark Shashoua – Chief Executive Officer
› Appointed CEO in September 2016
› Previously CEO of i2i Events Group, (events arm of
Ascential) from 2011, led the professionalisation
and diversification of the business, turning it from
double-digit CAGR decline to one of consistent
organic CAGR growth
› Second-generation and prominent figure in the international events
industry
› From 2001, he was a co-founder and Chief Executive Officer of
Expomedia Group Plc and from 2009-2011, Mark was the operating
partner of Advent International, a leading private equity fund
› One of the founding members of the Hyve group (then ITE) which
grew organically from 3 people to over 800 and 80 shows. He led the
floatation of the business in 1998 as CEO, and was a board director
until 1999.
Andrew Beach – Chief Financial Officer
› Appointed CFO in October 2016 and is Chairman of
Hyve’s Risk Committee
› Previously the Chief Financial and Operating
Officer of Ebiquity plc, spent nine years overseeing
the rapid expansion of the business to 20 offices in
14 markets, employing over 900 staff
› Prior to joining Ebiquity, he spent nine years at PwC as part of the
Entertainment and Media assurance practice where he qualified as a
Chartered Accountant (ICAEW) in 2000
› Andrew headed up the PwC UK Publishing sector knowledge network
and managed a portfolio of large media clients
Our Senior Executive Team
Our business model
/ 4Introduction to Hyve Group plc – December 2019
Connecting peopleOur business model
/ 5Introduction to Hyve Group plc – December 2019
EXHIBITORSuse our events to satisfy all of their marketing needs: to transact, market their brand, launch a product, educate the sector, deploy thought leadership or steer their industry.
VISITORScome to our events to
learn, experience, develop their skills,
find inspiration, meet new contacts or buy products.
Hyve Group provides market-leading , face-to-face platforms where communities can come together to achieve all of this within a high-
quality exhibition experience.
Our business model
Our revenue is generated through multiple streams
87% of our revenue is generated from exhibitors, with each exhibitor paying for floor space at an event, and many taking technical services (such as stand construction and furniture).
Usually, visitors attend for free (with a few exceptions). Some events benefit from sponsorship revenue.
We do things the Hyve way so exhibitors, visitors and sponsors choose us
MARKET-LEADING:We focus on market-leadingevents, so that we have the highest value propositionfor exhibitors and visitors
CONTENT-DRIVEN:We supply thought-provokingcontent thatattracts highquality visitorsand raises theprofile of ourevents
MUST-ATTEND:We offer the best of everything toensure we are the one event that our customers choose to put in their calendars
OUTSTANDINGCUSTOMEREXPERIENCE:We have arelentless focus on improvingevery part ofthe customerexperience and tailoring our communicationwith them
RETURN ONINVESTMENT:Our customersuccess teammakes sureexhibitors achieve their event goals so that they comeback next time
80%
7%
6%7% Exhibitor space
Technical services
Sponsorship
Other (including conference delegates)
Revenue streams managed the Hyve way
/ 6Introduction to Hyve Group plc – December 2019
Market overview
/ 7Introduction to Hyve Group plc – December 2019
/ 8
Market overview
Overview of the events industryCompetition
› M&A consolidation in traditional event organisers
› New market entrants focussing on sectors which are being disrupted
› Online business communities and DIY meet-up platforms challenging the traditional model
› Impact of new technologies - augmented reality, facial recognition, improved analytics tools provide opportunities to increase engagement, create better products and drive better ROI and ROT for customers 184
229
234
307
369
424
456
678
1625
1976
GL Events
Deutsche Messe
Hyve
Messe Dusseldorf
Messe Munich
Comexposium
Clarion
Messe Frankfurt
Reed Exhibitions
Informa
Top 10 international organisers by organising revenues, 2018, million USD1
1 Source: Organiser’s financial reports; AMR International, Globex 20192 Pre acquisition of Ascential and Mining Indaba. FY19 result approx. $285m
Introduction to Hyve Group plc – December 2019
2
/ 9Introduction to Hyve Group plc – December 2019
Global exhibition market forecast
› Steady growth is forecast (4% CAGR to 2023), driven by stable underlying economies and consistent demand for face-to-face business interactions
› AMR International predict that face-to-face interactions enabled by exhibitions will remain a critical channel for buyers and sellers
› They further predict that alternative online channels will remain complementary, and may become sources of enhanced visitor and exhibitor experience.
Market overview
1 Market size represents the size of the 14 main geographic markets analysed by AMR International and the six SEA countries added in 2017 Excludes ‘Rest of the World’ Source: AMR International, Globex 2019
28.5 29.6 31.0 32.2 34.0 35.3
2018 2019 2020 2021 2022 2023
Overall market forecast 2018-2023, $b1
4% CAGR
2017 strategic review
/ 10Introduction to Hyve Group plc – December 2019
/ 11
Historical context prior to TAG programme2017 strategic review
Introduction to Hyve Group plc – December 2019
› Exhibitors demand Return on Investment
› Visitors demand Return on Time
› Greater emphasis on learning and networking within a business community
FY13 FY14 FY15 FY16
Headline operating profit Costs
Revenue decline and unsustainable margins
29%36%35%31%
£134m£136m
£175m£192m
-11%CAGR
Changing customer expectations
/ 12
Portfolio challenges prior to TAG programme
/ 12Introduction to Hyve Group plc – December 2019
› The portfolio had additional challenges beyond market conditions
› A number of events had underperformed the market
› There were some obvious stars to offset these challenges
Event performance vs underlying market
-100%
-90%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-50.0 -40.0 -30.0 -20.0 -10.0 0.0 10.0 20.0 30.0 40.0 50.0
Hyve Event Space Growth (%), 2014-16 CAGR
Un
derlyin
gM
arket Gro
wth
(%), 2
01
4-1
5
Underperformingthe market
Outperforming the market
2017 strategic review
/ 13
The May 2017 Portfolio: Events Ranked by Revenue
/ 13Introduction to Hyve Group plc – December 2019
85%Core Events Revenue
2017 strategic review
Philosophies2017 strategic review
/ 14Introduction to Hyve Group plc – December 2019
Retention-led business enabled by technology
Content-led –high on relevance
Market leading events – ROI / ROT
Customer insight and data
Customer service
Strong sales and marketing performance based culture
2017 strategic review
Hyve view of the exhibitions industry
/ 15Introduction to Hyve Group plc – December 2019
Disrupters of Existing Shows(show formats or industry niches)
Product-led
Developed Market Regional Specialists
Emerging Markets Specialists
Global Portfolio
RegionalPlayers
Our vision
2017 strategic review
“To create the world’s leading portfolio ofcontent-driven, must-attend eventsdelivering an outstanding experience
and ROI for our customers.”
/ 16Introduction to Hyve Group plc – December 2019
2017 strategic review
Transformation and Growth programme
Product-led Acquisitions
Managethe Portfolio
Create a Scalable Platform
Underpinned by a performance-led culture
TAG Programme
/ 17Introduction to Hyve Group plc – December 2019
Transformation delivered
/ 18Introduction to Hyve Group plc – December 2019
Transformation delivered
Scalable operating model created
/ 19Introduction to Hyve Group plc – December 2019
Invested in show operations
Built capability & talent
Built fit-for-purpose IT infrastructure & systems
Drove a performance culture
Created best practice functions & teams
Transformation delivered
Strengthened key commercial KPIs
/ 20Introduction to Hyve Group plc – December 2019
New customer service team helps exhibitors
maximise success
Systematic lead generation drives
growth
New business (FY18-19) increased by >25%
Exhibitor NPS (FY16-19) increased from +3 to +14;
industry average is -17*
New high quality content attracts
key visitors
Visitor NPS (FY16-19)increased from +14 to +28;
industry average is +7**
* UFI & Explori, Global Exhibitor Insights, November 2017 Edition**UFI & Explori, Global Visitor Insights, 2018/19 Edition
Managing the portfolioEvent Quality & Potential Higher Lower
GrowthMarket tailwind
MatureStable, mature market
ChallengedFacing market or competitive threat
Large>£1.0m revenue
Medium£0.5m-£1.0m revenue
Small<£0.5m revenue
Non-Core
Use full suite of transformational levers
Enable sales & marketing to drive volume growth
Invest in content and shows to drive great customer experience
Scal
e
Pricing, show value and content to drive yield and retention
Manage pro-actively, solve issues across commercial, content and operations
Top priority
Mediumpriority
Lowpriority
89 less profitable
shows discontinued since start of TAG
Successful disposal of TradeLink, ECMI and
ITE Expo (Russian non-core)
Continue to review all options for less
profitable shows
Onsite re-booking, sales commissions
Core
Transformation delivered
/ 21Introduction to Hyve Group plc – December 2019
Transformation delivered
Integration of acquisitions is complete
/ 22Preliminary results: year ended 30 September 2019
Focus on customer proposition between events
Operational integration with Africa Oil Week
Sector expansion in GermanyGrow international events to scale in ChinaLaunch hosted buyers programme Investigate new markets over the longer term
Re-edit events and add new sectorsVisitor acquisition teams to target online and major chains
Re-edit events to improve customer experienceFocus on key accountsGrow international events to scale Launch hosted buyers programmeInvestigate new markets over the longer term
Reinvesting half of the synergies to drive future growth
Integration
Synergies
Investment plans
1
1 Moda was an existing Hyve event
Transformation delivered
Targeted trajectory for recent acquisitions
/ 23Preliminary results: year ended 30 September 2019
Division Acquired events FY19 FY20 FY21
UK Ascential events Inherited trajectory Stabilise Grow
Global Brands Ascential events Inherited trajectory Grow Grow
Global Brands Mining Indaba Inherited trajectory Grow Grow
Investment plans
Quality of portfolio improved since launch of TAGTransformation delivered
/ 24Introduction to Hyve Group plc – December 2019
May 2017 Sep 2019
No. of events 269 130 52%
Revenue £134m2 £221m3 64%
Revenue per event £0.5m £1.7m 240%
269 events
130events
May 2017 Closed Divested Acquired Sep 2019
89
6515
Manage the portfolio
Product-led acquisitions
1
1 Launch of TAG, May 20172 FY16 reported revenue3 FY19 reported revenue
Transformation delivered
A more balanced geographical footprint
/ 25Introduction to Hyve Group plc – December 2019
12%
16%
14%
11%
47%
FY17 Revenue
ESE
Asia
Global Brands
Central Asia
23%
10%
9%
8%
28%
22%
FY19 Revenue
Russia
ESE
Asia
Global Brands
Central Asia
UK
Russia
Returned the business to sustainable growthTransformation delivered
/ 26Preliminary results: year ended 30 September 2019
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Headline operating profit Costs
Revenue and headline operating profit
29%36%35%31%
£134m£136m
£175m£192m
-11%CAGR
£153m£176m
£221m
23% 22% 25%
+18%CAGR
TAG
/ 27Introduction to Hyve Group plc – December 2019
MosBuild
Transformation delivered
TAG improvements since FY16
› MosBuild moved to Crocus Expo, Russia’s largest venue, from 2019
› Much improved content programme with Perfect Home, VR design lab and MosBuild TV
› Volume up >50%
› Exhibitor NPS up from -7.0 to +8.3
› Visitor NPS up from +7.0 to +26.0
FY19
FY19
Transformation delivered
Breakbulk Europe
/ 28Introduction to Hyve Group plc – December 2019
TAG improvements since FY16
› 37% more space sold
› Visitor NPS improved from +8 to +28
› Revenue per exhibitor up 55%
› Overall revenue up 67%
/ 28Preliminary results: year ended 30 September 2019
FY16
FY19
Transformation delivered
Africa Oil Week
/ 29Introduction to Hyve Group plc – December 2019
FY16*
FY20
*Hyve took full ownership of AOW in May 2017, i.e. FY17**Delegate NPS figures first recorded in FY18
TAG improvements since FY17*
› Delegate NPS (FY18-19)** improved from +18 to +32
› Paid delegates (FY17-19) up 33%
› Overall revenue (FY17-19) up 40%
TAG financials
/ 30Preliminary results: year ended 30 September 2019
TAG financials
One-off TAG programme investment
/ 31Preliminary results: year ended 30 September 2019
£20m
One-off Costs Mix
Capex Opex - ExceptionalBest Practice Infrastructure &
SystemsInvest in Show
OperationsPerformance Culture Capability & Talent
Investment by Transformation Lever
FY17 £6-7m FY18 £8-10m FY19 £4-6mPlan
FY18 £7.0m FY19 £4.2mFY20
forecast £3.8m
FY17 £5.0mActual
TAG financials
Ahead of plan on all TAG investment targets
1 Original plan delivery expected H2 FY21; revised to H1 FY21 / 32Preliminary results: year ended 30 September 2019
Target Original plan Revised Status
Positive ROI FY20 FY19 Delivered early
ROI > WACC FY21 FY20 Ahead
Cash payback FY21 FY21 Ahead1
TAG financials
“Create a scalable platform” targets ahead of plan
Positive ROI
Plan Within 3 years (FY20)
Update Within 2 years (FY19)
FY17 FY18 FY19 FY20 FY21 FY22
TAG plan Update
In-year net operating profit after tax (“NOPAT”)
Positive ROI in FY 2019
1
ROI > WACC1
Plan Within 4 years (FY21)
Update Within 3 years (FY20)
Cash Payback
Plan Within 4 years (FY21)
Update Within 3.5 years (FY21)
2
3
1 Based on May 2017 WACC / 33Preliminary results: year ended 30 September 2019
Industry-leading growth after years of decline
£192m
£175m
£136m £134m
£153m
£176m
£221m
£120m
£140m
£160m
£180m
£200m
£220m
£240m
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Revenue
LFL growth / (decline) -10% -12% -8% +5% +11% +7%
TAG financials
/ 34Preliminary results: year ended 30 September 2019
Sustainable margins
31%
35%36%
29%
23%22%
25%26%
27%
20%
25%
30%
35%
40%
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Operating profit margin
TAG investment period
City consensus
Reinvestment
TAG financials
/ 35Preliminary results: year ended 30 September 2019
Net debt within guidanceTAG Financials
/ 36Preliminary results: year ended 30 September 2019
1.41.3
2.0
1.9
1.4
1.0
0.5
1.0
1.5
2.0
2.5
FY16 FY17 FY18 FY19 FY20 FY21
Net debt :EBITDA
City consensus
TAG corridor 1.5x – 2.0x
Average cash conversion
FY17-19 > 100%
Operational delivery of TAGTAG financials
/ 37Preliminary results: year ended 30 September 2019
FY19 FY16 Variance
Yield
Average yield (per SQM)1
– TAG £252 £187 +35%
Average yield (per SQM)1
– Total £225 £183 +23%
Yield growth versus inflation +3% -13% +16pp
Revenue visibility
Onsite rebook 47% 0% >100%
Forward bookings 62%2 53%3 +9pp
Sales performance
Revenue per employee £177k £95k +86%
Revenue per exhibitor4
£7.4k £6.0k +23%
1 LFL event revenue / LFL sqm (excluding AOW conference)2 For FY20 at 1 Oct 2019 3 For FY17 at 1 Oct 20164 TAG events excluding AOW conference
On track to deliver our 3-year guidanceTAG financials
/ 38Preliminary results: year ended 30 September 2019
FY18 FY19 FY20
Revenue growth
Margin growth
EPS growth
FY19 results(12 months to 30 September 2019)
Preliminary results: year ended 30 September 2019 / 39
FY19 highlightsFY19 results
/ 40Preliminary results: year ended 30 September 2019
FY19 FY18
Revenue £220.7m £175.7m LFL growth 7%
Headline PBT £50.4m £35.4m LFL growth 16%
Operating profit margin 25.3% 22.0% Increase of 3.3pp
TAG costs one-off £4.2m £7.0m
Within guidanceongoing £8.0m £7.5m
Net debt £111.7m £82.7m <2x EBITDA, within guidance
Headline diluted EPS 4.9p 4.9p In line with expectations
Dividend 2.5p 2.5p Maintained at 2x EPS cover
Revenue bridgeFY19 results
/ 41Preliminary results: year ended 30 September 2019
(£6.0m)
(£5.3m)(£2.3m)
£47.9m
£10.7m
£175.7m
£220.7m
FY18 Net Biennial& Timing
Acquisitions& Disposals
Launches &Cancellations
FX Impact UnderlyingTrading
FY19
£m
Ascential/ Mining Indaba
62.5
ITE Expo (Russia)/ Central Asia/Other
(14.6)
£m
TRY (1.4)
RUB (0.8)
INR (0.5)
Other 0.4
£m
Russia 6.6
AOW 1.2
Breakbulk 0.6
Other 2.3
Top 10 TAG events drove higher revenue growth
25%Top 10 TAG
Rest of portfolio
LFL growthTOTAL 7%
LFL growth Top 10 TAG13%
Average yield Top 10 TAG £309/sqm1
Average yieldTOTAL £266/sqm1
FY19 results
/ 42Preliminary results: year ended 30 September 20191 Total group revenue / total group sqm (excluding AOW and Mining Indaba conferences)
Headline PBT bridgeFY19 results
/ 43Preliminary results: year ended 30 September 2019
(£0.4m)
(£0.5m)
(£4.2m)
£15.4m
£4.7m
£35.4m
£50.4m
FY18 Net Biennial& Timing
Acquisitions& Disposals
Launches &Cancellations
FX Impact UnderlyingTrading
FY19
£m
Revenue Translational (2.3)
Cost Translational 1.5
Translational (0.8)
Transactional (B/S) (3.4)
£m
Ascential/Mining Indaba
17.6
ITE Expo (Russia) / Central Asia / Other
(2.2)
FY19 results
Strong revenue visibility for FY20 as at 29 November 2019
/ 44Preliminary results: year ended 30 September 2019
£152m revenue booked
for FY201
Represents 66% of
consensus
LFL increase of 4%
Financial summaryFY19 results
/ 45Preliminary results: year ended 30 September 2019
Excellent FY20 revenue visibility
Strong LFL revenue growth; Top 10 TAG events double-digit
growth
Step change towards sustainable operating
margins
Profit growth significantly above
revenue growth
Appendices
/ 46Preliminary results: year ended 30 September 2019
Revenue by sectorAppendices
/ 47Preliminary results: year ended 30 September 2019
28%
16%
7%9%
7%
3%
10%
8%
6%6%
FY17
17%
15%
14%
8%8%
7%
7%
6%
5%
5%4% 4%
Build & Interiors
Retail
Food & Packaging
Education Technology
Fashion
Manufacturing Industrial Technology
Transport & Logistics
Connect
Energy
Travel & Tourism
Advanced Technologies
Beauty & Healthcare
FY19
Top 10 events by revenueAppendices
/ 48Preliminary results: year ended 30 September 2019
Event name Region
Spring Fair UK
MosBuild Russia
BETT (London) Global Brands
WorldFood Moscow Russia
Autumn Fair UK
CWIEME Berlin Global Brands
Mining Indaba Global Brands
MITT Russia
RosUpack Russia
Aquatherm Moscow Russia
Event name Region
MosBuild Russia
WorldFood Moscow Russia
MITT Russia
Aquatherm Moscow Russia
TurkeyBuild E/S Europe
Acetech Mumbai Asia
MIOGE Russia
RosUpack Russia
YugAgro Russia
Breakbulk Europe Global Brands
43%
Top 10 Rest of portfolio
35%
Top 10 Rest of portfolio
May 2017 (launch of TAG)September 2019
Banking facilityAppendices
£146m
£14m
At 30 September 2019
Drawn
Undrawn› Net debt - £111.7m
› Available Facility – £160m (and £30m accordion)
› Term loan £65m amortising at £17.5m / £17.5m / £30m; balance RCF
› Interest Rate – LIBOR + 2-2.75%
› 2.5x net debt:EBITDA covenant
› Term – November 2021
/ 49Preliminary results: year ended 30 September 2019
Consensus forecast1
Appendices
Consensus Minimum Maximum
2020
Turnover (£m) 230.7 227.0 237.2
Headline profit before tax (£m) 55.1 54.5 55.7
Headline diluted EPS (pence) 5.3 5.1 5.4
Net debt (£m) 91.1 83.6 97.4
2021
Turnover (£m) 240.3 235.6 248.6
Headline profit before tax (£m) 59.5 58.6 60.8
Headline diluted EPS (pence) 5.7 5.5 5.8
Net debt (£m) 68.5 49.2 82.6
1 Based on analyst forecast reports to 29 October 2019 / 50Preliminary results: year ended 30 September 2019
Shareholder structure as at 31 October 2019Appendices
Country of Shareholder % of Total Shares No. of Shares (millions)
RWC Partners UK 15.3 113.5
Brandes Investment Partners USA 11.4 84.4
Fidelity Management & Research UK, USA 9.1 67.5
Bestinver Asset Management Spain 5.2 38.5
BlackRock UK 4.9 36.1
Invesco Canada 4.6 34.1
Legal & General Investment Management UK 4.5 33.2
Amiral Gestion France 4.1 30.7
JO Hambro Capital Management UK 4.0 29.3
Vanguard Group USA 3.2 23.9
Directors 0.3 2.0
Other institutions and individuals 33.4 248.4
Total Shares in Issue 100 741.6
/ 51Preliminary results: year ended 30 September 2019
FY 2017 FY 2018 FY 2019
Create ‘best practice’ functions & teams
Invest in event operations
Build a ‘fit for purpose’IT infrastructure& systems
Drive a performance culture
Build capability & talent
TAG milestonesAppendices
/ 52Introduction to Hyve Group plc – December 2019
Design of the ‘Hyve way’
New event content deployed
Roll out of event ‘blueprint’
Roll out of dedicated specific training programmes
Implementation of the ‘Hyve way’
Setup of Customer Success team Implementation of value-based pricing methods
Setup of dedicated Content team
Review of performance structure
Development of Sales leadership
Standardisation of Performance Management
Systems design & development Systems deployed in phased waves
Launch of integrated sales and marketing systems
1st new hardware roll out Launch of ‘one view’ back office systems
Recruitment of key organisational roles
Product-led acquisitionsAppendices
Phase 1 Quick screening
Phase 2Thorough analysis
Phase 3Due diligence
Phase 4Transaction
Objective “be effective” “identify pearls” “don’t miss risk” “fair deal”
Activity Screen maximum # of shows...... employing set ofclear criteria
Assessment of concrete potential for Hyve
Strategic / market DDFinancial DDSynergy estimate
Integration planning
Final price negotiationDeal structuring (e.g. earnout)
M&A funnel
Example Screening Criteria
Size
Distinct Customer Value Proposition
Structurally Attractive Market for Exhibitions
High Growth Underlying Market
Organic Revenue Growthand Profit Margin
International Roll Out Potential
ROIC
EPS Accretion
/ 53Preliminary results: year ended 30 September 2019
Source of acquisitionsAppendices
Acquisitions likely to come from the following sources:
£143m1
(of £158.6m2)= 90% of
total revenue
Non-core assets (e.g. Mining Indaba acquisition by Hyve)
Bolt-on market-leading events which
will accelerate our geo-clone strategy
(e.g. Bett Brazil acquisition by
Ascential Events1)
Owner-operated founders looking for someone to take the
business to the next level (e.g. Money 2020
acquisition by Ascential Events)
/ 54Preliminary results: year ended 30 September 20191 Now owned by Hyve
Appendices
Ascential deal strategic rationale
£143m1
(of £158.6m2)= 90% of
total revenue
£200m3
(of £213.6m)= 94% of
consensus
£147m1
(of £220.7m2)= 67% of
total revenue
£143m1
(of £230.7m)= 62% of consensus
Product-led portfolio with global and
market leading brands
Further value through synergies
Significant potential under our management
as Core events
/ 55Preliminary results: year ended 30 September 2019
A more balanced portfolio for the enlarged group
Strong financial rationale; earnings enhancing in 2019
/ 56
Appendices
Mining Indaba acquisition
› Met the TAG acquisition criteria as the must-attend event in the African mining industry
› Strong strategic rationale and complementary to Africa Oil Week
› AOW and MI teams now merged to drive synergies
› Implementation of Hyve best practice will drive growth from FY20 onwards
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