Fiera Milano Group Presentation. South Europe & Switzerland Midcap Event Paris, 25 October 2012

Transcription

1 Fiera Milano Group Presentation South Europe & Switzerland Midcap Event Paris, 25 October 2012

2 Contents Company overview Achievements Strategy Closing remarks Appendices 2

3 Fiera Milano in brief The Group is the market leader in Italy and one of the world s leading operators across the entire value chain of the exhibition industry It has two venues in Milan with a total of 388,000 gross sq m of indoor space (+ 60,000 sq m of outdoor space) In 2011 it hosted 95 exhibitions in Italy and abroad with more than 40,000 exhibitors and over five million visitors, of which 30% were business people In 2011 it rented out 1.8 million net sq m of exhibition space in Italy and abroad At 30 June 2012, it had 697 employees (of which 103 abroad) 3

4 What is Fiera Milano? Fiera Milano is a tool for the economic development of a country FOR EXHIBITING COMPANIES a market and sector reference point, a commercial tool for competing, a business school to measure oneself against one s competitors, an event for the exchange of ideas and where one can increase sector know-how The deepening crisis and economic globalisation have resulted in a trend towards exhibition internationalisation Partnering companies in the complex process of penetrating and establishing themselves in new international markets: promoting the exports of participating companies FOR THE ECONOMY OF THE COUNTRY and region: strategic advantage and rotation of wealth a direct contributor to GDP (the revenues from exhibitions) an indirect gain generated by a multiplier effect a knock-on effect on the domestic economy (expenses sustained by exhibitors and visitors/exhibition group activities) 4

5 European exhibition market overview Since 2007 the exhibition sector has suffered from strong competition due to the growth in exhibition space in , the result of increased investments by exhibition centres Geographic breakdown of increased supply ( ) 000 gross sq m of exhibition space GERMANY - supply of sq m: flat - demand for sq m: -2% SWITZERLAND - supply of sq m: +11% - demand for sq m: -20% % change Italy % France % Spain % Germany % Switzerland % Portugal % Netherlands % Belgium % Total 2,769 2,808 2,949 3,146 3,230 17% ITALY - supply of sq m: +27% - demand for sq m: -8% FRANCE - supply of sq m: +29% - demand for sq m: -12% SPAIN - supply of sq m: +23% - demand for sq m: -17% Geographical breakdown of decline in demand ( ) 000 gross sq m of exhibition space sold % change Italy 7,885 7,833 7,277 8% France 9,701 9,696 8,580 12% Spain 5,673 6,059 4,711 17% Germany 4,304 4,421 4,224 2% Switzerland 1,659 1,808 1,322 20% Portugal % Netherlands 1,206 1,360 1,224 1% Belgium 1, ,062 8% 5 SOURCE: EMECA; Germany includes Frankfurt and Nuremberg Total 32,207 32,705 28,859 10%

6 Fiera Milano in the macroeconomy INCREASED IMPACT OF THE ECONOMIC CRISIS ON EXHIBITION ACTIVITY (a risk of reduction in the life cycle of exhibitions and potential cancellations) - INCREASED COMPETITION AMONGST EXHIBITION VENUES (exhibition space exceeds demand) How Fiera Milano reacted to the macroeconomic and competitive environment - Developing international alliances and acquisitions Fiera Milano is becoming a multi-national entity - Rationalising the offer and creative revamping of exhibition content An increase in service content and no longer just a seller of space (a commodity) but offering an event rich in experience in which to confront competition and reach specific demand - Support and incentive initiatives to encourage participation at Italian exhibitions and aimed at increasing exhibitor loyalty 6

7 Fiera Milano s market position Fiera Milano is the European leader for net sq m of exhibition space rented out to international exhibitions Fiera Milano has the highest rotation rate (gross sq m rented out/gross indoor exhibition capacity) Main European Exhibition Sites Rotation Rate Source: Cermes Bocconi, Data refer to Fiera Milano 8.2 Hanover 5.2 Frankfurt 6.1 Fira Barcelona Gran Via 6.6 Valencia 3.3 Source: EMECA, July Data refer to

8 Fiera Milano s market position Fiera Milano is the largest exhibition entity in Italy and among the largest in the world in terms of Gross Indoor Exhibition Capacity First 5 Exhibition Sites in Italy Gross Indoor Capacity (Sq m '000) First 10 Exhibition Sites in the World Gross Indoor Capacity (Sq m.000) Fiera Milano (Rho site) 345 Bologna 200 Verona 152 Roma 119 Rimini 109 Source: EMECA, July Data refer to 2011 Hanover 467 Frankfurt 356 Fiera Milano (Rho site) 345 China Import & Fair Complex Guangzhou 340 Cologne Exhibition Grounds 284 Düsseldorf Exhibition Grounds 263 Paris Nord Villepinte 243 McCormick Place Chicago 241 Fira Barcelona Gran Via 240 Valencia 231 Source: AUMA, January

9 Group structure FOREIGN EXHIBITIONS ITALIAN EXHIBITIONS Direct organisation of exhibitions Rent of space and related services to exhibition organisers and direct organisation of exhibitions CONGRESSES Management of conventions and congresses MEDIA A multimedia and multi-channel communications system including printed publications, internet and conferences STAND-FITTING SERVICES Stand-fitting services 9

10 Italian and foreign exhibitions In Italy Fiera Milano hosts exhibitions operating as a «facility manager» through the management of the exhibition sites of fieramilano and fieramilanocity, promoting and making equipped show areas available, also offering design support and correlated services to third party organisers and directly organises its own exhibitions providing exhibition space and services directly to exhibitors Abroad the Group: operates only as a direct organizer in seven countries through its direct presence or through joint ventures or partnerships with local operators The calendar of biennial and multi-year exhibitions creates fluctuations in annual and quarterly revenues 10

11 Global presence Fiera Milano is a successful organiser of exhibitions in BRIC countries RUSSIA since 2011 No. exhibitions: 1 CHINA since 2008 No. exhibitions: 15 a portfolio of 63 exhibitions organized abroad SINGAPORE since 2012 No. exhibitions: 1 BRAZIL since 2011 No. exhibitions: ITALY No. exhibitions: 80 SOUTH AFRICA since 2012 No. exhibitions: 3 INDIA since 2008 No. exhibitions: 8 TURKEY since 2012 No. exhibitions: 12

12 Congresses Fiera Milano is active in the organisation of congresses, conventions and conferences through the management of Europe s newest and largest congress centre, MiCo, Milano Congressi: 18,000 seats, an auditorium with 4,500 seats, 73 rooms with seating for from 20 to 2,000, ancillary exhibition space of 54,000 sq m The Group also manages: Stella Polare Congress Center (Rho) Momec, the executive business suite in Rome The Company runs over 500 events a year ranging from big international congresses and conventions to gala dinners and product launches 12

13 Stand-fitting services and Media The subsidiary Nolostand offers stand-fitting services, technical services and all exhibition site services for exhibitions and congresses The Group produces content and supplies on line and off line publishing services, as well those associated with the organisation of events and congresses. This segment includes the following sectors: publishing and digital services events and training 13

14 Favourable payment cycle Main financial clauses in the contractual agreements with organisers: standard contract guarantee (minimum guaranteed) significant advance payments treasury management services on behalf of organisers The Group has structural negative NWC Advance payments minus FM fees FM SpA Organisers Advance payments (on average 6 months ahead for annual and 12 months ahead for biennial events) Exhibitors Commercial relationship 14

15 Shareholder structure Treasury shares 2.18% Free float, 24.26% BPM 2.62% Fondazione Cariplo 2.42% CCIAA Milano 6.46% Ente Autonomo Fiera Internazionale di Milano, 62.06% 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 15 Updated as at 27 April 2012

16 Contents Company overview Achievements Strategy Closing remarks Appendices 16

17 Results for the period M Gross operating margin Net financial debt/gross operating profit 6.9% 8.2% 11.1% Increase in Gross operating margin Reduction in Net financial debt/gross operating profit Return to a dividend distribution in 2012: Euro 0.20 per share 17

18 Achievements in Italy initiatives taken to increase exhibitor loyalty and offset the effects of the economic crisis In 2011 Tuttofood (food sector) becomes the leading exhibition in the food sector in Italy occupying more than 40,000 sq m - launch of the new sector BtoBio dedicated to the professional organic sector Host (hospitality sector): +10% in net exhibition space, a record 125,000 visitors, 34% from outside Italy From 2013 new exhibitions: Solarexpo, an international exhibition on renewable energy, and Made in Steel, an exhibition for the iron and steel industry In 2015 Fiera Milano will host ITMA the world's largest itinerant international exhibition in the textile machinery industry Launch of a new pret à porter show for women in collaboration with Pitti Immagine, leader in the Italian fashion sector Successful concerts help increase Group activities in the summer months, including the Heineken Jammin Festival in 2012 with 30,000 attendees 18 In May 2011, the successful opening of Europe s newest and largest congress centre, MiCo Milano Congressi. Leading international congresses and events have included Euretina (European congress on Ophthalmology) with 19,500 attendees and World Congress on Pain with 9,000 attendees HP convention with 5,000 attendees and SAP convention with 9,000 attendees

19 2008-the present: strong international development A portfolio of 63 exhibitions held abroad achieved by: January 2008: a joint venture agreement with Deutsche Messe AG (owner of the Hanover exhibition site) to develop together exhibitions in China and India January 2011: acquisition of 75% of the share capital of Grupo Cipa, a successful exhibition company in the Brazilian market (particularly for exhibitions in the safety & security and technology sectors) July 2011: Fiera Milano India Private Ltd becomes operational in New Delhi to launch both proprietary exhibitions and exhibitions organised in conjunction with leading local operators July 2011: OOO Fiera Milano becomes operational in Moscow to launch both proprietary exhibitions and exhibitions organised in conjunction with leading local operators December 2011: the joint venture Milan International Exhibition Srl is set up with the Milan Chamber of Commerce to carry out promotional marketing for the Fiera Milano Group outside Italy and to increase the presence of international exhibitors in Italy and abroad January 2012: acquisition by the subsidiary Hannover Milano Fairs India of 50% of the share capital of Global Fairs & Media August 2012: acquisition of 60% of the share capital of Interteks, a leader in the Turkish market August 2012: acquisition of 75% of the share capital of Cape Gourmet Food Festival, a leading exhibition company in South Africa in the Food & Beverage sector 19

20 A growing international presence 2008 C I 2012 Commercial network Presence with foreign companies Presence in partnership with a local operator 20 S

21 Synergies across continents Exhibitions exported from Italy MACEF to: Brazil (São Paulo 2012), Russia (Moscow 2012) Food Hospitality World to: India (Bangalore 2012; Mumbai 2012; Calcutta/Goa 2013), China (Guangzhou 2012) and Brazil (São Paulo 2013) Sposaitalia to: Turkey (Si sposa Istanbul 2013) Exhibitions exported from Brazil Reatech to: Italy (Reatech 2012), Singapore (Rehab Tech Asia 2013) and in Turkey (Rehabtech Turkey 2013) 21

22 Significant growth in foreign activities Number of exhibitions organised abroad: 0 in 2007, 33 in 2011, 43 in 2012E, 58 in 2013E 22 Italy Abroad

23 Rationalisation Cost savings of about 20% in the management of the exhibition site (maintenance, energy, security services, cleaning) in the period Reduction of about 200 employees in Italian Group companies in the period mainly following a widereaching reorganisation and restructuring Radical Group rationalisation: from 13 subsidiaries at 31 December 2008 to three subsidiaries in Italy today and a sharp reduction in directors 23

24 Contents Company overview Achievements Strategy Closing remarks Appendices 24

25 Strategy The Group s strategy aims to: Increase its internationalisation and consolidate its existing presence abroad Creat value by renegotiating the rental lease for the exhibition site Enhance its collaboration with Expo

26 International strategy EXPORT PROPRIETARY EXHIBITIONS EXPORT EXHIBITIONS OWNED BY THIRD-PARTIES Export proprietary exhibitions to BRICS countries Bring foreign proprietary brands to Italy and to other target countries DEVELOP THE NETWORK FOR INTERNATIONAL ATTENDEES Use the Group s international platform to develop abroad the exhibitions organised by third-parties and hosted in Milan (e.g. Micam in China) CONSOLIDATE EXHIBITIONS IN BRICS COUNTRIES Consolidate the existing presence in BRICS countries and expand the portfolio of exhibitions Expand the presence of international exhibitors and buyers through a direct presence in the main European countries and through a network of marketing agents BUSINESS DEVELOPMENT Penetration of countries with strong economic growth through acquisitions, joint ventures and/or commercial partnerships 26

27 The future international presence of the Group Current presence of Fiera Milano abroad: Brazil, Russia, India, China, Singapore, South Africa, Turkey Potential new growth markets: USA, Mexico, Indonesia 27

28 The Peters Projection Map 28 Akademische Verlagsanstalt.

29 The Mercatore Projection Map 29

30 Pacific Centered Peters, Physical 30 Akademische Verlagsanstalt.

31 Rental contract The economic and sector environment that existed in 2003 when the first rental contract for the exhibition site was agreed has changed significantly The rent paid by Fiera Milano now represents ca. 25%* of revenues compared to an incidence of depreciation on revenues of between 6% and 12% for other Italian and main European exhibition sites The rental contract with the majority shareholder, Fondazione Fiera Milano, expires on 31 December 2014, with notice of cancellation to be given by 30 June 2013 Fiera Milano has started talks to renegotiate the terms of the contract 31 * Calculated on the revenues generated in the fieramilano exhibition site

32 Expo 2015 The Fiera Milano Group with its considerable know-how offers itself as a partner for Expo 2015 through: o an all-inclusive offer to design, coordinate, manage and organise the activities of participating countries for: the design and realisation of pavilions and exhibition areas the supply of services throughout the period of the event availability of business centres and meeting rooms congresses and events media and web marketing projects o The offer of exhibition sites when there are no exhibitions taking place Investments totalling Euro 2.6 billion are expected for the World Exhibition of which: Euro 1 billion of investments in Expo 2015 from foreign countries A Euro 1.3 billion investment agreed by the government Expo expects to receive Euro 300 million from companies 32

33 Contents Company overview Achievements Strategy Closing remarks Appendices 33

34 Closing remarks Leadership in the Italian and European trade show market with a wide and diversified portfolio of exhibitions, almost entirely B2B Presence in high growth countries (BRICS) and a strategy focused on further international development to capture the demand in dynamic countries and on developing systems to achieve synergies with flexible integration Higher operating margin due to increasing foreign activity Strong restructuring has also led to increased margins and a manageable debt position Upside potential from a possible renegotiation of the rental contract and from Expo

35 Contents Company overview Achievements Strategy Closing remarks Appendices 35

36 History s-70s 80s 90s today Eight entrepreneurs organise the first trade fair in Milan aimed at showing sample products to acquire commercial agreements. Fiera Milano Campionaria Internazionale ( Ente Autonomo ) is set up by the committee of eight entrepreneurs and obtains charitable status Fiera Campionaria grows at a fast pace becoming the market place for Made in Italy products Fiera Campionaria becomes Fiera d Aprile. In addition to the traditional annual trade fair, the first sector exhibitions are launched. Since 1991, the exhibition calendar includes 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) From February 2000, Ente Autonomo acts as a 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 FM is listed on the Italian Stock Exchange In 2005 the Rho exhibition complex opens and in 2008 the urban site is reorganised FM acquires some important exhibition organisers in Italy and develops services (trade publications, catering, stand fitting, internet) FM grows abroad in the BRIC countries 36

37 Italian exhibition portfolio: main events Exhibition Industry Frequency Sq.metres ('000) Number of exhibitors Salone del mobile Furniture and furnishing Annual 211 1,760 Macef primavera + Macef autunno/bijoux Homeware and gifts Annual 185 3,040 Micam (Spring) + Micam (Autumn) Textiles, clothing & accessories Annual 141 3,030 Mostra Convegno Expocomfort Building and related equipment Biennial 133 1,500 Eicma Moto Vehicles and related equipment Annual Made Expo Architecture, design and building Annual 98 1,465 EMO Industrial machinery Multi-year 96 1,415 Host Commerce - Services Biennial 95 1,165 Plast Industrial machinery Multi-year 60 1,025 Artigiano in fiera Antiques and craft products Annual 58 2, Data based on most recent exhibitions hosted prior to 31 December 2011

38 Italian exhibition portfolio by sector Data are based on average space rented out in 2009FY FY Tourism -Sport - Leisure 8% Cosmetics and Chemistry 2% Textiles, Clothing, Accessories 15% Industrial machinery 18% Vehicles and related equipment 7% Food - Catering 3% Furniture 12% Antiques and Craft products 3% Homeware and Gifts 11% Electronics, Electrical engineering, Security 2% Building - Installations - Energy 11% Commerce - Services 8% Communication & Office 0,4% The Company hosts a diversified and well-balanced portfolio of exhibitions most exhibitions are B2B a very wide range of sectors is represented, especially those connected with Made in Italy the portfolio of exhibitions gives some resilience to the economic cycle for many small companies trade exhibitions represent the main opportunity to promote their products and services 38

39 Foreign exhibition sectors BRAZIL Safety and Security, vehicle and relative equipment, construction, green energy, gas&bio fuels, food beverage and hospitality, mechanical technology, homeware and gifts, rehabilitation CHINA Mechanical technology, vehicle and relative equipment, energy, industrial automation, tourism, robotics, electrical and mechanical engineering, food beverage and hospitality INDIA Mechanical and electrical technology, food beverage and hospitality, vehicle and relative equipment, information engineering RUSSIA Homeware and gifts SINGAPORE SOUTH AFRICA TURKEY Rehabilitation Food and beverage Beauty and personal care, home and garden, hospitality, sailing and logistics 39

40 Consolidated Income Statement FY11 Income Statement ( '000) 1H12 1H11 278,000 Revenues 160, ,565 30,917 Gross operating result 30,730 20, % Gross operating margin (%) 19.1% 14.3% 15,518 Net operating result (EBIT) 24,665 15, % Net operating margin (%) 15.4% 10.9% 12,716 Profit before income tax 22,484 13, % Profit before tax margin (%) 14.0% 9.8% 5,149 Profit 13,946 7, % Profit margin (%) 8.7% 5.5% 4,927 -attributable to equity owners of the parent company 13,988 7, % Profit attributable to equity owners of the parent company margin (%) 8.7% 5.5% 222 -attributable to non-controlling interests (42) % Profit/(loss) attributable to non-controlling interests margin (%) 0.0% 0.0% 40

41 Reclassified Consolidated Balance Sheet Balance Sheet ( '000) 30/06/12 31/12/11 Non-current assets 210, ,617 Net working capital (41,267) (65,228) Gross capital employed 169, ,389 Non-current liabilities 30,190 27,503 Total net capital employed 139, ,886 Net equity 75,055 70,666 Net financial position 64,108 52,220 Net equity and net financial position 139, ,886 41

42 Net Financial Position Net Financial Position ( '000) 30/06/12 31/12/11 Cash (including bank balances) 14,902 19,865 Other cash equivalents - - Securities held for trading - - Cash & cash equivalents 14,902 19,865 Current financial assets 2,135 3,451 Current bank payables 63,114 54,817 Current portion of non-current debt 4,920 5,395 Other current financial payables - - Current financial debt 68,034 60,212 Current net financial debt (cash) 50,997 36,896 Non-current bank payables 13,111 15,324 Debt securities on issue - - Other non-current payables - - Non-current net financial debt 13,111 15,324 Net financial debt (cash) 64,108 52, The increase in net financial debt reflects the dividend distribution made by the Parent Company and investments made in the semester, as well as the payment of earn-outs for the acquisitions of Cipa FM and Hannover Milano Global Germany GmbH; this was partly compensated by operating cash flow that was positive despite the trend in pre-payments from exhibitors for future exhibitions

43 Forward-Looking Statements 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. The Manager responsible for preparing the company s financial reports Flaminio Oggioni declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this document corresponds to the document results, books and accounting records. 43

44 For further information, please contact: Gianna La Rana Investor Relations Manager Fiera Milano SpA Strada Statale del Sempione, Rho (Milano) - ITALY Tel: / investor.relations@fieramilano.it