Hyve Group plc Annual Report 2020 and Accounts Reset, renew, evolve. Hyve Group plc Annual Report and Accounts 2020 In this report Strategic report Our performance in 2020 02 Group overview 1 04 Our response to COVID-19 Revenue Like-for-like revenue growth 06 Restarting in-person events (£m) (%) 08 Chief Executive Officer’s statement 2020 105.1 2020 (11) 12 Chairman’s statement 2019 220.7 2019 7 14 Business model 2018 175.7 2018 11 16 Our strategy 2017 152.6 2017 5 24 Principal risks and uncertainties 2016 134.4 2016 (8) 28 Going concern and viability statement 30 Chief Finance & Operations Officer’s statement Headline diluted earnings per share1,2 Headline (loss)/profit before tax1 40 Key performance indicators (p) (£m) 42 Divisional trading summary 46 Section 172(1) statement 2020 (13.6) 2020 (18.7) 50 Our people and values 2019 27.8 2019 50.4 52 Corporate social responsibility 2018 27.5 2018 35.4 54 Non-financial information 2017 28.6 2017 31.6 Governance 2016 37.4 2016 36.5 56 Governance at a glance (Loss)/profit before tax Adjusted net debt1 58 Board of Directors (£m) (£m) 60 Corporate governance report 2020 (312.9) 2020 67.7 64 Directors’ report 67 Audit Committee report 2019 8.7 2019 111.7 71 Risk Committee report 2018 (3.7) 2018 82.7 72 Nomination Committee report 2017 (3.2) 2017 49.7 74 Remuneration Committee report 2016 (4.1) 2016 59.1 77 Directors’ remuneration report 1 In accordance with the ESMA Guidelines on Alternative Performance Measures (APMs) issued by 90 Directors’ responsibilities statement the European Securities and Markets Authority (ESMA), additional information is provided on APMs used by the Group in the Glossary. In the reporting of financial information, the Group uses Financial statements certain measures that are not required under International Financial Reporting Standards (IFRS). These additional measures provide additional information on the performance of the business and 92 Independent auditor’s report trends to stakeholders and are defined in the Glossary. 100 Consolidated income statement 2 Headline diluted earnings per share for 2016 and 2017 have been restated for the bonus elements of the rights issues in July 2018 and May 2020. Headline diluted earnings per share for 2018 and 2019 101 Consolidated statement of have been restated for the bonus element of the rights issue in May 2020. comprehensive income 102 Consolidated statement of changes in equity 103 Consolidated statement of financial position 104 Consolidated cash flow statement How we are restarting 105 Notes to the consolidated accounts 146 Company statement of financial position events in some regions 147 Company statement of changes in equity We have worked with major venues, 148 Notes to the Company accounts industry bodies, national health authorities and other event organisers to drive 155 Glossary international standards of event safety 158 Shareholder information while simultaneously launching our 160 Directors, advisers and other information own Safe & Secure standards. 57 events held Read more | p.06 The Strategic report was approved by the Board in FY20 and signed on its behalf by Mark Shashoua, Chief Executive Officer, on 1 December 2020. Mark Shashoua Learn more about Hyve at: hyve.group Strategic report Governance Financial statements Looking ahead Hyve’s market-leading events are ideally placed to service the pent-up demand for learning, networking and trading while stimulating the global economy. Read about how we’re securing our recovery through responding p.18 to evolving customer needs. hyve.group 01 Group overview Who we are Hyve Group plc is a next-generation events business, powering global industry communities. We create unmissable experiences, where customers from all corners of the globe share extraordinary moments and shape industry innovation. Our market-leading in-person events offer our customers unbeatable return on investment and time. Each event provides access to the latest insights and trends, thought-provoking content and countless opportunities to learn, network and trade. Where business is personal, where meetings move markets and where today's leaders inspire tomorrow’s. The impact of COVID-19 As a global provider of in-person events, Hyve has been significantly impacted by COVID-19, both in terms of varying local restrictions on business events and by international travel constraints. Read about how we have responded to the pandemic and the work we have done to ensure we weather the crisis and emerge stronger. Read more | p.04 02 Hyve Group plc Annual Report and Accounts 2020 Strategic report Governance Financial statements Events in 2020 57 67 events ran events were in FY20 cancelled due to COVID-19 3 events were postponed to FY21 due to COVID-19 Our geographic reach 2019 2020 Total 2020 revenue Global Brands UK Russia £105.1m £31.8m £24.7m £21.8m 30% 24% 21% 100% Asia £17.1m 16% Central Eastern Asia & Southern £5.7m Europe 5% £4.0m 4% hyve.group 03 Our response to COVID-19 Four steps to protect our business We responded quickly and We initiated Project Fortress in March 2020, a We are in control of our cash flows, allowing team which met weekly and was formed of us to be at the forefront of recovery once decisively once the pandemic senior, global Hyve leaders led by CEO Mark in-person events recommence globally, struck, securing a strong Shashoua. In addition, the Board met on a and we have clear visibility of cash funding weekly basis to review the global impact, throughout FY21 and into 2022. financial and operational strategy and Group financial position. position to weather the We have worked with venues and suppliers COVID-19 crisis. and have proactively engaged with banks and insurance providers to maximise cost savings and liquidity. 1 Respond 2 decisively Create financial stability • Established Project Fortress – a senior, global team, led by the CEO, to manage all aspects of the impact of COVID-19 • Modelled a reasonable worst-case scenario assuming no events would take place prior to 1 January 2021, except in China • Further steps taken • Initiated our rolling postponement and • Debt repayment deferrals obtained to reduce costs and cancellation plan for November 2020 and 2021, subject conserve cash to receiving insurance proceeds • Conducted a review of every cost • First insurance payout across the Group with particular focus • Covenants waived up to and including of £12.9m received on venue liability and minimising space March 2022 requirements • Secured a shareholder- • Fully drew down on our available £250m backed rights issue, raising debt facilities to provide financial security £126.6m to strengthen our >17m balance sheet >10m Confirmed cases worldwide impact of COVID-19 is more severe >6m than expected <1m >3m by economists MAR APR MAY JUN JUL 04 Hyve Group plc Annual Report and Accounts 2020 Strategic report Governance Financial statements 3 Restart & restructure 4 • Second restructure of UK business, merging Global Look ahead Brands and UK divisions and • Disposed of event streamlining HQ functions due to portfolio in Azerbaijan prolonged impact of COVID-19 and Uzbekistan for a total on western economies consideration of up to • Management of our cost base £9.5m, payable over • Insurance receipts reach £22.0m has reduced monthly operational a number of years cash cost from £16m in FY19 to • Achieved annualised cost savings • First Hyve events restart £10–11m in FY21 of £44m, compared with an initial in China and Ukraine target of £9m • Net monthly cash cost, which assumes a level of income from • Costs avoided through not running customer and insurance receipts, events, delivering total in-year cost is expected to be £4m–5m savings of £63m • Hyve events restart in Russia >63m >46m >33m >25m • Hyve events restart in Turkey • Further insurance claims of £11.5m confirmed, pending receipt AUG SEP OCT NOV DEC COVID-19 data source: John Hopkins University, Center for Systems Science and Engineering. hyve.group 05 Restarting in-person events Safely resuming our events We believe in the power of Our Safe & Secure in-person events and know 48% standards that the best advancements of companies believe that the absence of live Hyve is taking a leading role in the development events has negatively impacted their ability of plans which will allow the safest possible in business, industry and to generate new business1 return to in-person events for customers and humanity arise from people colleagues, while not compromising on quality. coming together to learn, We have developed our in-house Safe & Secure network and trade. standards, which are an evolution of our already 86% market-leading health and safety measures. of exhibitors prefer in-person events over We are in constant communication with our digital with regards to networking1 We will display our Safe & Secure stamp customers, and the vast majority tell us that on marketing materials and signage to let they can’t wait for our events to resume. customers know the new measures have been applied. To date, we have been able to restart events 1 UFI & Explori: Global Recovery Insights 2020. in Russia, China, Ukraine and Turkey and we To develop these standards, we have worked continue to monitor the evolving situation in alongside industry bodies Association of Event the rest of the regions we work in. Organisers (AEO) and Global Association of the Exhibition Industry (UFI), as well as with national health authorities, governments, major venues and other event organisers. 06 Hyve Group plc Annual Report and Accounts 2020