Introducing the Fiera Milano Group. Milan January 2008

Transcription

1 Introducing the Fiera Milano Group Milan January 2008

2 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Financial Highlights Section 4. Strategy and Future Developments Introduction 2

3 Section 1 Company Overview

4 Fiera Milano at a Glance The Group is the leading operator in Italy and one of the leading operators in the World in the entire value chain of tradeshow and exhibition industry The Group operates in: Venues & Related Services (VRS) - hosting exhibitions and other events, promoting and providing equipped exhibition spaces, and also offering design support and related services Value Added Services (VAS) - supply of services in connection mainly with the exhibition and congress segment Exhibition & Congress Organisation (ECO) - organisation of trade and consumer exhibitions and congresses ECO 41% 9M 07 GROSS SALES VAS 16% VRS 43% Two venues for 375,000* gross sqm indoor (+ 60,000 outdoor) Average of 1.7 million net sqm rented per year More than 300 million of consolidated sales About 80 exhibitions hosted per year, of which more than 40% directly organised by the Group Approximately 30,000 exhibitors per year About 700 employees Company Overview 4 * Expected in October 2008

5 Group Structure Company Overview 5 Including operating companies

6 Integrated Business Model Venue Owner Venues & Related Services (VRS) Space + Related Services Facility Manager Value Added Services (VAS) Value Added Services Exhibition & Congress Organization (ECO) Organisers Exhibitors Visitors Space rented out Commercial Relationship Value Added Services (i.e. Exhibitions, Stands, Catering, Publishing ) Company Overview 6

7 Significant contribution to Development & Growth Scientific and Industrial Research Scientific results Publishing Congresses Exhibitions Events Disseminating the scientific results Sharing the scientific results Applying the scientific results (from scientific results to products) Creating a brand identity F I E R A M I L A N O G R O U P Company Overview 7

8 The Group economic impact The Group economic impact on Lombardy is estimated equal to 4.3 billion, Energy 3% Agriculture 2% Construction 3% Transport 12% Manufacturing 16% Hotels and commerce 34% B2B services and other services 30% of which 1.9 billion (44% of the total) directly originated by exhibitors and visitors Others 0.4% B2B services 25% Exhibiting Services 39% Other services 2% Logistics Telecom 3% 1% Manufacturing 6% Construction 2% Services to people 61% Hotels and commerce 47% Transport 14% Company Overview 8 Source: CERTeT- Bocconi, 2003

9 History s-70s 80s 90s today Company Overview Eight entrepreneurs organise the first trade fair in Milan, aiming at showing sample products to close commercial agreements. Fiera Milano Campionaria Internazionale ( Ente Autonomo ) is set up by the committee of the eight entrepreneurs and obtains the charity status Fiera Campionaria grows at a fast pace, representing the marketplace for Made in Italy products Fiera Campionaria becomes Fiera d Aprile. Besides the traditional annual trade fair, the first sector exhibitions are launched. Since 1991, the fair calendar has only sector based exhibitions In 1997 Ente Autonomo increases the exhibition capacity by opening three new pavilions located in an industrial area next to Fiera (the Portello area) Since February 2000, Ente Autonomo acts as Fondazione di diritto privato ( Fondazione ) and, in July 2000, sets up and spins off Fiera Milano ( FM ), a new company active in exhibition venue management and related services. In October 2000 FM starts its activities FM acquires the previously rented trade fair business from Fondazione In December 2002 Listing on the Italian Stock Exchange In 2005 opening of the Rho exhibition complex FM acquires some important organisers in Italy (Fiera Milano International, Fiera Milano ExpoCTS, Fiera Milano Tech) FM develops value added services (i.e. technical publishing, catering, stand fittings, Internet) 9

10 Shareholders Structure Ente Autonomo Fiera Internazionale di Milano, 52.82% Market Float, 34.37% Treasury Shares, 1.52% * BPM, 2.52% Fondazione Cariplo, 3.30% CCIAA Milano, 5.47% Fiera Milano is controlled by Fondazione Fiera Milano, a private law foundation, whose corporate mission is the development of the exhibition sector in Italy and abroad Company Overview 10 Source: Shareholders Meeting as at June 26, 2007 * As at January 21, 2008

11 The Evolution of Fiera Milano Mission To our new role: to provider also of value-added services & exhibition and congress organiser TO BE THE GLOBAL LEADER, OFFERING THE OPPORTUNITY TO PEOPLE AND COMPANIES TO MEET PHISICALLY AND VIRTUALLY - FOR GROWING THE VALUE OF THEIR BUSINESS - THROUGH EXHIBITIONS, CONGRESSES, EVENTS, TRADE PRESS, WEB- SITES AND DATABASES From simple square metres provider... At the beginning 2000 IPO December 2002 From 2003 to 2006 From 2007 onwards Company Overview 11

12 Section 2 Market and Business Model

13 The Exhibition Market by Geographic Area North America 2005: 390 (+2.6%) 1992: 380 Europe 2005: 2,800 (+10.2%) 1995: 2,540 Asia 2005: 1,080 (+45.9%) 1995: 740 South America 2005: 210 (-8.7%) 1992: 230 Number of events is based on those listed by AUMA Europe represents the major exhibition market in the world with a steady growth and a trend towards differentiation and specialisation Asia is the area growing at the fastest pace Market and Business Model 13 Institute of Trade Fair Management Cologne, 2006

14 European Exhibition Market Italy is the second country in Europe per net sqm rented out for international exhibitions in Spain 11% UK 3% Others 10% Italy 25% France 13% Fiera Milano is the first for net sqm rented out Germany 38% 1,401,698 1,352,013 1,193,762 1,151,564 1,127, , , , , ,020 Fiera Milano Paris Hanover Frankfurt Dusseldorf Madrid Bologna Munchen Cologne Barcelona Paris data are the sum of different exhibition operators Market and Business Model 14 Source: Cermes Bocconi, October 2007

15 Two Exhibition Sites Market and Business Model 15

16 Fiera Milano Positioning The physical size of Fiera Milano exhibition sites is: the largest in Italy the 2 nd largest in the World (5% smaller than the 1 st ) First 3 Exhibition Sites in Italy Gross Indoor Capacity (Sqm '000) First 10 Exhibition Sites in the World Gross Indoor Capacity (Sqm '000) 1 Fiera Milano (Two venues) Bologna Verona 122 * 1 Hanover Fiera Milano (Two venues) Frankfurt Barcelona (Montjuic+Gran Vià) Paris-Nord (Villepinte+Le Bourget) Cologne Dusseldorf Valencia Paris Expo Chicago 204 * Market and Business Model 16 Source: AUMA, 2006 and exhibition site websites * Expected equal to 375,000 sqm in October 2008

17 Net sqm rented out - Frequency (Data in 000) FY ended June 30 th FY end Dec 31 st , , , , , , FY02 FY03 FY04 FY05 FY06 6M FY at FY07 E 1, , , , , of which directly organised 31% 22% 30% 43% 42% 33% 1,700 42% Market and Business Model Annual Biennial Multiannual 17 Rounded Figures

18 Exhibition Portfolio: Main Events The Company hosts a diversified and well-balanced portfolio of exhibitions average exhibitions hosted per year a very wide range of sectors is represented, especially those where Italian companies are particularly strong for several small companies operating in fragmented sectors, the exhibition represents the main opportunity to promote their products and services to the market Sqm Number Exhibition Industry Frequency ('000) of exhibitors - Macef primavera + Macef autunno/bijoux Homeware and gifts Annual 243 4,140 - Salone del mobile Furniture and furnishing Annual 211 1,820 - Mostra Convegno Expocomfort Building and related furniture Biennial 154 1,740 - Micam primavera + Micam autunno Textiles, clothing & accessories Annual 147 3,135 - Host Commerce - Services Biennial 98 1,400 - Transpotec Vehicles and related equipments Biennial Xylexpo Industrial machinery Biennial Eicma Moto Vehicles and related equipments Annual Plast Industrial machinery Multiannual 66 1,120 - Milano Unica autunno + Milano Unica primavera Textiles, clothing & accessories Annual 65 1,360 - Bimu Industrial machinery Biennial Ipack-Ima Industrial machinery Multiannual 64 1,060 - Bit Sport - Leisure Annual Mido Textiles, clothing & accessories Annual Artigiano in fiera Antiques and crafted products Annual 49 1,480 Market and Business Model 18

19 Exhibitions Portfolio per Sector A diversified portfolio of exhibitions supports a high level of resilience to the economic cycle Most relevant sectors are connected with the Made in Italy Building and related furniture 8% Food - Catering Vehicles and related 1% equipments 10% Sport - Leisure 5% Health and Environment 2% Textiles, clothing & accessories 19% Furniture and furnishing 12% Industrial machinery 16% Antiques and crafted products 3% Homeware and gifts 14% 1% Commerce - Services 8% Communication & Office 1% Chemistry Market and Business Model 19 Data based on net sqm rented out in FY as at June 30, 2006

20 Exhibitions Portfolio 12% 5% 88% B2B B2C 95% International Exhibitions Local and Regional Exhibitions International exhibitions feature > 15% Foreign Exhibitors or > 8% Foreign Visitors or > 4% Extra EU Visitors Market and Business Model 20 Data based on net sqm rented out in FY as at June 30, 2006

21 Congress Organisation The Group deals with the organisation of congresses, conventions, conferences and events through the management of three congress halls: MIC - Milano Convention Center (Milan) Stella Polare Congress Center (Rho) Villa Erba (Como) The Group operates through the following activities: management of events organised and/or commercialised by third parties management of congresses with annexed exhibition area Market and Business Model 21

22 Fiera Milano Abroad Network of Representatives abroad which covers 64 countries in the world The Network analyses the most promising markets and assists companies to penetrate them. In cooperation with exhibition organisers, regional and national institutions, the Group support joint participation of Italian companies in trade fairs all around the world, as well as trade missions, marketing activities and business partner researches Market and Business Model 22

23 Strategic Alliance with Deutsche Messe AG Fiera Milano operates in the development of the exhibition business in China, one of the fastest growing countries, through a strategic alliance with Deutsche Messe AG, leader in Europe and owner of the Hanover exhibition centre. The partnership, which can be extended also to India, is managed through a German master company (51% Deutsche Messe AG and 49% Fiera Milano). The cooperation between Fiera Milano and Deutsche Messe can be spread to other extra European markets (Russia, Brazil), through an Italian master company (51% Fiera Milano and 49% Deutsche Messe AG). Market and Business Model 23

24 Section 5 Financial Highlights

25 Consolidated Revenues (Data in m) FY ended June 30 th FY end Dec 31 st (10.3) (52.1) (69.1) (101.7) (28.2) (66.5) FY02 IT GAAP FY03 IT GAAP FY04 IT GAAP FY05 IFRS FY06 IFRS VRS+VAS VRS VAS ECO I/C Adjustments 6M FY at IFRS 9M FY07 IFRS Financial Highlights 25

26 Consolidated Gross Operating Margin (Data in m) 13.8% 16.3% % 56.8 FY ended June 30 th 13.0% % 59.9 FY end Dec 31 st Six months 2006 results affected by the unfavourable exhibition calendar, also due to the change of year-end financial statement date 3.4% (0.5) (22.8) (1.2) (18.5) Financial Highlights FY02 IT GAAP FY03 IT GAAP FY04 IT GAAP FY05 IFRS VRS+VAS VRS VAS ECO I/C Adjustments 26 FY06 IFRS (0.1) (4.1) (0.1) 6M FY at IFRS MARGIN % -21.4% 9M FY07 IFRS

27 Consolidated Net Operating Margin (Data in m) 8.2% FY ended June 30 th FY end Dec 31 st 12.1% 11.4% 8.7% 8.4% % (40.1) 3.9 (1.2) (3,1) (0.9) (23.5) (7.3) -37.7% (13.2) Financial Highlights FY02 IT GAAP FY03 IT GAAP FY04 IT GAAP FY05 IFRS VRS+VAS VRS VAS ECO I/C Adjustments 27 FY06 IFRS 6M FY at IFRS MARGIN % 9M FY07 IFRS

28 Favorable Payment Cycle Main financial features of the contractual agreements with organisers are: standard contracts guarantee (minimum guaranteed) significant advance payments treasury management service to organisers Advance Payments (minus FM fees) FM SPA Organisers Advance payments (on avg. 6 months for annual, 12 months for biennial) Invoice Exhibitors Commercial relationship Financial Highlights 28

29 Negative Net Working Capital (Data in m) A feature of the Group is its structural negative NWC 30 Jun Dec Jun Dec Jun 2007 (43.4) (71.5) (62.1) (55.1) (90.5) Financial Highlights FY ended June 30 th 29 FY ends Dec 31 st (Data are compliant with IAS/IFRS)

30 Balance Sheet Data (Data in m) Jun Dec Jun Net Capital Employed Net Financial Position Shareholders' Equity Financial Highlights 30 (Data are compliant with IAS/IFRS)

31 Section 6 Strategy and Future Developments

32 The Pillars of the Industrial Plan Development action & action on exhibition portfolio Enhance the value of the existing portfolio of exhibitions directly organised by the Group with - focus on most important exhibitions - acquisition of trademarks currently not owned - start-up/enhancement of exhibitions supported by trade associations - sale of non-strategic trademarks Strengthening Group internationalisation also via acquisitions of exhibitions Increase our presence in the congress sector and in technical publications Optimise utilisation of exhibition sites when not occupied by trade fairs via intensification of direct organisation of events Action to reduce costs Reconfiguration of exhibition space to improve the level of utilisation, reducing operational costs for exhibition facilities Personnel development (re-engineering process, new form of motivation, new cultural approach, training) with significant cost savings Reduction of the number of subsidiaries to achieve more effective governance Strategy and Future Developments 32

33 Expected net sqm to be rented out (Data in m) FY ends Dec 31 st FY08E Average FYs 09-11E Strategy and Future Developments 33

34 Expected Consolidated Revenues (Data in m) FY ends Dec 31 st FY08E Average FYs 09-11E Existing activities Action on exhibition portfolio + external growth Strategy and Future Developments 34

35 Expected Consolidated Gross Operating Margin (Data in m) FY ends Dec 31 st 11.4% % FY08E Average FYs 09-11E Existing activities Action on exhibition portfolio + external growth Strategy and Future Developments 35

36 Expected Consolidated Net Operating Margin (Data in m) FY ends Dec 31 st 7.6% % FY08E Average FYs 09-11E Existing activities Action on exhibition portfolio + external growth Strategy and Future Developments 36

37 Forward-Looking Statements The Manager charged with preparing the Company s financial reports, Bruno Boffo, in compliance with the requirements of paragraph 2 of Article 154/2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), herewith declares that the financial disclosure contained in this document corresponds to documentary evidence, corporate books, and accounting records. This document has been prepared by Fiera Milano S.p.A. solely for information purposes and for use in presentations of the Group. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the company, its affiliates, or its representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document includes forward-looking statements. These forward-looking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a results of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 37

38 Thank you for your attention For further information, please contact: Gianna La Rana Investor Relations Manager Camilla Cusi Investor Relations Fiera Milano SpA Strada Statale del Sempione, Rho (Milano) - ITALY Tel: / investor.relations@fieramilano.it