Activity report 2011
02
“whatever happens, always keep your clients happy”
03
Eric Everard Executive Chairman Artexis Group
04
How to realize growth and value in a challenging market In difficult times, Artexis Group manages to outperform the market. Indeed, the balance sheets of the past three years show a solid increase in revenues and profits, despite the aftereffects of the financial crisis. ‘There is no big secret to the way we grow our business’, says Eric Everard. ‘Our main principles are very simple. Don’t get distracted by short-term market cycles. Look ahead. Concentrate on your core business. Switch to a sustainable business model. And whatever happens, always keep your clients happy.’ What’s the strategy of Artexis in respect to mergers and acquisitions? ‘Our mission is to bring people and companies together at inspiring fairs and congresses. We are constantly looking for new opportunities to fulfil this mission and to strengthen our core business. In the Belgian market, the segment of construction and renovation is of high strategic importance to us. We have a leading share in this market through our fairs in Ghent and Antwerp, which are aimed at private builders and home owners. In July 2010 we acquired 100% of the shares of Habitat & Développement, which organizes two yearly construction fairs in Namur: Bois & Habitat and Energie & Habitat. These events fit like a glove in our existing portfolio. Our aim is to further expand these fairs and to develop similar formulas in other regions or countries. For instance, in Antwerp we already organized Hout & Habitat, a ‘clone’ of Bois & Habitat with wood construction as the main theme.’ ‘easyFairs, our subsidiary which specializes in time- and cost-efficient professional fairs, has also been growing through strategic take-overs. They acquired 100% of Fairtec and 51% of Eventos Ome. Fairtec, based in Antwerp, organizes professional fairs for the industrial sector. easyFairs and Fairtec complete each other because their activities are highly complementary. Eventos Ome is based in Madrid and has an impressive track-record in e-commerce and e-marketing events. In Spain, their fairs are a standard of reference. Now we’re exploring the possibility to ‘clone’ their formulas in other countries.’
05
‘Our takeover of Jack Sobel, a real estate company, should be regarded as a long-term investment strategy. We now own an office building in the commercial heart of Brussels, which should guarantee a steady flow of rental payments. Moreover, we already managed to rent out almost all of the available office space (5000 square meters) directly after signing the deal.’ ‘The sale of Hello Agency, an agency specializing in retail marketing and advertising, complies with our strategy to concentrate on our core business. We simply didn’t see enough possibilities to create valuable synergies between Hello Agency and other units of Artexis Group.’ ‘If you look at the current balance sheet, you’ll notice that the sale of Hello Agency has had a positive impact on our financial health. It’s this operation that accounts for the recent, giant leap in our cash position.’ Are you happy with the results of the past financial year? ‘I don’t believe that we should isolate the results of one financial year, because we clearly committed ourselves to a long-term business strategy. I’d rather compare the results of the last three years to determine the main trend. If you look at the bigger picture, you will have to acknowledge that Artexis Group is heading in the right direction. From 2009 to 2012 there’s a clear and positive trend: a neat increase in revenues and profits, combined with a sharp improvement of the debt ratio. Our staff number has also slightly increased, due to the expansion of our activities. Why then was there no increase in the recurring revenues in 2010-11? ‘In 2010 we sold three interior decoration fairs to Fisa, the organizer of Batibouw. As a result, Cocoon, Sfeer and InWonen were cut out of our portfolio and this had an impact on our turn-over. So first you see a stagnation of the recurring revenues on 30 June 2010 due to the transfer of the interior decoration fairs, but then on 30 June 2011, you can notice an increase in these recurring revenues of more than 10%.’ ‘More importantly, you see a constant progress in the recurring EBITDA over the three past financial years. By focusing all our efforts on our core business, we managed to boost our profitability and to remain on the growth path.’ Eric Everard, Executive Chairman Artexis Group
21.763
+4,0%
15.000 20.000 10.000
06
30 JUNE
30 JUNE
2009
Figures
10.000 15.000
30 JUNE
70.000 60.000 65.000
64.162 64.162 64.162
-0,6%
-0,6% -0,6%
70.656
63.805
+10,7%
63.805 63.805
+10,7%
70.656 70.656
30 JUNE
30 JUNE
2009
45.000 50.000 50.000 30 JUNE
30 JUNE
2009
30 JUNE
2010
2011
30 JUNE
30 JUNE
2009 30 JUNE 2009
6.000 7.000
5.340
7.000 5.000 6.000 6.000 4.000 5.000
1.000
+24,6%
27.388 41.096 27.388
+24,6%
25.107 30 JUNE 25.107 27.388 2009
30%
Current liabilities
20%
30 JUNE
2010 30 JUNE 2010
2011 30 JUNE 2011
EBITDA Artexis Group 7.0001000s) (€
2.000 1.000
41.096
40% 10%
10%
40.000
3.000 1.000 2.000
+24,6%
46.843
37.966
46.843
5.475 28.353
29.947
37.966 28.353
46.843 29.947
26.441
31.274
30 JUNE 26.441 28.353 2010
30 JUNE 31.274 29.947 2011
50% 20%
55.000
4.000 2.000 3.000
5.475
100% 70% 50%
60% 30% 10%
50.000 55.000
5.000 3.000 4.000
2011
70%
80% 60%
70% 40% 20%
60.000
40.000
30 JUNE
2010
Capital and reserves & liabilities 100% 80% 5.475 37.966 (€90%1000s)41.096
80% 50% 30%
55.000 60.000
45.000
2011
10.000
90% 60% 40%
+10,7%
65.000
40.000 45.000
30 JUNE
2010
90%
Revenues Artexis Group (€ 1000s)
75.000
75.000 65.000 70.000
2011
30 JUNE
2009
100%
70.000 75.000
30 JUNE
2010
+92,3%
2.777 2.777 2.777
5.340 5.340
Capital and liabilities from discontinued activities
30 JUNE Capitals and reserves
2009
25.107liabilities Current
30 JUNE
Non current liabilities 2010
26.441 31.274 activities Capital and liabilities from discontinued
Capitals and reserves 30 JUNE
Non current liabilities 30 JUNE
2009
30 JUNE
2010
2011
Current liabilities
Capital and liabilities from discontinued activities
Capitals and reserves
Non current liabilities
Personel Growth Artexis Group 300
6.220 +16,5%
+16,5%
6.220 6.220
+16,5%
250 300
283
-5,3%
268
+8,6%
-5,3%
268
+8,6%
-5,3%
268
+8,6%
283
200 250 150 200 300
+92,3%
283
100 150 250
+92,3%
30 JUNE
2011
291 291
291
50 100 200
50 150 30 JUNE
30 JUNE
2009
30 JUNE
2010
30 JUNE
30 JUNE
2009
2011
2010
30 JUNE
2011
100 30 JUNE
30 JUNE
2009 30 JUNE 2009
2011 30 JUNE 2011
Equity - Artexis Group’s Share (€ 1000s)
30.000
+24,6%
30.000 25.000
21.763
+24,6%
+19,8%
22.639
+19,8%
27.113 27.113
2011
Owners’ 2009 equity - debts 2010 Artexis Group (€ 1000s)
2011
30 JUNE
30 JUNE
+4,0%
22.639 22.639
90% 100% 80% 90% 70% 80% 60%
+4,0%
+24,6%
21.763 21.763
20.000
+19,8%
100% 70% 50%
80% 50% 30% 70% 40% 20%
15.000
60% 30% 10%
15.000 10.000
50% 20% 30 JUNE
2009
30 JUNE
2010
30 JUNE
2011
10.000 30 JUNE
2009 2009 30 JUNE
30 JUNE
2010 2010 30 JUNE
21.364 +24,6%
21.364
30 JUNE
2011 2011 30 JUNE
40% 10% 30% 20% 10%
19.298
22.788
19.298
22.788
19.298 26.441
22.788 31.274
26.441
31.274
+24,6%
90% 60% 40%
+4,0%
20.000 15.000
10.000
30 JUNE
2010
100%
27.113
25.000
30 JUNE
2009 50
30 JUNE
30.000
25.000 20.000
30 JUNE
30 JUNE
2010 30 JUNE 2010
21.364 25.107 +24,6%
25.107 30 JUNE
2009 Debts 30 JUNE 25.107 2009 equity Owners’
30 JUNE
30 JUNE
2010
2011
26.441
31.274
2010
2011
30 JUNE
30 JUNE
Debts Owners’ equity 30 JUNE
2009
30 JUNE
2010
30 JUNE
2011
07
Consolidated income statement Financial year to 30 june 2011 (€ 1000s) 30/06
30/06
30/06
2011
Var ( %)
2010
Var ( %)
2009
REVENUES
72.056
5,0 %
68,635
7,0 %
64,162
Sales
69,165
9,5%
63.147
0,8%
62.630
Other operating income
2.891
-47,3%
5.488
258,2%
1.532
CHARGES
69.351
9,1%
63.549
-2,0%
64.842
Cost of sales
17.320
20,8%
14.339
1,5%
14.121
Other goods and services
31.368
2,5%
30.603
-5,6%
32.403
Employee expenses
17.804
15,0%
15.480
4,2%
14.861
Depreciation and provisions
2.859
-8,6%
3.127
-9,5%
3.457
OPERATING PROFIT - EBIT
2.705
-46,8%
5.086
-
-680
EBITDA
5.564
-32,3%
8.213
195,8%
2.777
08
Consolidated balance sheet Financial year to 30 june 2011 (€ 1000s) 30/06
ASSETS
30/06
30/06
2011
Var ( %)
2010
Var ( %)
2009
NON CURRENT ASSETS
65.143
12,1%
58.114
-4,8%
61.025
Tangible fixed assets
43.250
11,6%
38.751
-3,8%
40.271
Intangible fixed assets
18.327
16,2%
15.768
3,5%
15.228
Deferred tax assets
3.246
0,9%
3.217
-34,9%
4.941
320
-15,3%
378
-35,4%
585
42.671
26,0%
33.874
4,0%
32.566
0
-
0
-100,0%
399
Trade and other receivables
23.763
8,9%
21.828
-23,0%
28.330
Cash and cash equivalents
18.908
57,0%
12.046
213,9%
3.837
250
-96,0%
6.247
-
0
108.064
10,0%
98.235
5,0%
93.591
Fixed financial assets
CURRENT ASSETS Stocks
ASSETS FROM DISCONTINUED ACTIVITIES
TOTAL ASSETS
09
Consolidated balance sheet Financial year to 30 june 2011 (€ 1000s) 30/06
30/06
30/06
2011
Var ( %)
2010
Var ( %)
2009
AL CAPITAL AND RESERVES
31.274
18,3%
26.441
5,3%
25.107
Capital and reserves - Group’s share
27.113
19,8%
22.639
4,0%
21.763
Minority interests
4.161
9,4%
3.802
13,7%
3.344
NON CURRENT LIABILITIES
29.947
5,6%
28.353
3,5%
27.388
Interest-bearing loans
19.350
-
18.650
-2,3%
19.086
Deferred and latent tax liabilities
9.799
6,3%
9.215
15,0%
8.010
798
63,5%
488
67,1%
292
CURRENT LIABILITIES
46.843
23,4%
37.966
-7,6%
41.096
Interest-bearing loans
3.438
430,6%
648
-71,6%
2.278
Trade and other creditors
43.405
16,3%
37.318
-3,9%
38.818
0
-100,0%
5.475
-
0
108.064
10,0%
98.235
5,0%
93.591
EQUITY AND LIABILITIES
Other fixed liabilities
CAPITAL AND LIABILITIES FROM DISCONTINUED ACTIVITIES
TOTAL CAPITAL AND LIABILITIES
The condensed financial information presented in this section represents an abstract of the annual accounts and the consolidated accounts of Artexis Group SA as approved by the General Assembly and filed with the National Bank of Belgium. These financial statements were drawn up in accordance with the Belgian GAAP (generally accepted accounting principles) and the IFRS standards respectively. The statutory auditor, Ernst & Young Réviseurs d’entreprises scrl, represented by Eric Golenvaux, always certified that it had no reservations concerning the annual accounts and the consolidated accounts. However, in order to make it possible to compare this financial information, the results relating to Hello Agency (a subsidiary the group has sold) for the financial periods closed at 30/6/2007 and at 30/6/2008 have been reworked.
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