Fiera Milano Group. STAR Conference 2010 Presentation. London, 5 October 2010

Transcription

1 Fiera Milano Group STAR Conference 2010 Presentation London, 5 October 2010

2 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Strategy and Actions Section 4. 1 st Half 2010 Financial Highlights Section 5. Business Outlook STAR Conference 2010 Presentation 2

3 Fiera Milano in brief The Group is the leading operator in Italy and one of the leading operators in the World in the entire value chain of the exhibition industry About 300 million of consolidated sales Approximately 30,000 exhibitors per year Two venues for a total of 388,000 gross sqm indoor space (+ 60,000 outdoor) making it the second largest venue worldwide Average of million net sq meters rented out per year in Italy Average of 70 exhibitions hosted per year in Italy 5 million visitors, of which about 30% professional 15 exhibitions organised in China and India through the joint venture with Deutsche Messe About 700 employees Company Overview 3

4 Operating segments ECO - Exhibition and Congress Organisation Direct organisation of exhibitions and congresses VRS - Venues and Related Services Fiera Milano acts as a facility manager renting out space and related services to exhibition organisers 27% 53% 20% VAS - Value Added Services Provider of services: stand fittings, food and beverage, ICT services and technical publishing % on 1H10 gross sales Company Overview 4

5 Company Overview Integrated and Customer Oriented Business Model Market Exhibitors Organisers Buyers and professionals Consumers Potential clients Multi-channel Communication & Business Development 5 Facility Management Exhibition Management Congress Centre Management Stand fittings Multimedia communication (convention management, web communication, technical publishing) ICT services High Tech and 2 nd biggest site in the world

6 Group Structure Including operating companies as at 30 June 2010 Company Overview 6

7 Mission and Strategy Fiera Milano aims to become the leading international exhibition company in the world, providing its customers with an excellent range of services Focus on core business through a strong customer orientation Internationalisation increase foreign exhibitors and visitor participation support customers in reaching new foreign markets export top-level exhibitions to fast-growing countries conquer new countries through partnerships and acquisitions in the organisation sector Company Overview 7

8 Shareholders' structure Market Float, 24.15% Treasury Shares, 1.97% BPM, 2.62% Fondazione Cariplo, 2.42% CCIAA Milano, 6.78% Fondazione Fiera 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 Source: Shareholders register and communications received pursuant to art.120 of Leg.Decree no. 58/98 as at 15 April 2010 Company Overview 8

9 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Strategy and Actions Section 4. 1 st Half 2010 Financial Highlights Section 5. Business Outlook STAR Conference 2010 Presentation 9

10 Global Exhibition Market Source: UFI, The Global Association of the Exhibition Industry Estimates year 2008 Market and Business Model 10

11 International Exhibitions in Europe Italy is the second country in Europe for net sqm rented out Others* 14% Italy 24% Spain 11% Fiera Milano is the first for net sqm rented out Paris data are the sum of different exhibition sites France 13% Germany 38% * Estimates 1,532,139 1,435,614 1,205,033 1,193,465 1,140, , , , , ,021 Source: Cermes Bocconi, 2010 Data refer to Fiera Milano Paris Hanover Düsseldorf Frankfurt Madrid München Köln Bologna Nürnberg Market and Business Model 11

12 Fiera Milano Positioning Fiera Milano in Italy Fiera Milano in a world context First 5 Exhibition Sites in Italy Gross Indoor Capacity (Sqm '000) First 10 Exhibition Sites in the World Gross Indoor Capacity (Sqm '000) Fiera Milano (Rho site) 345 Bologna 200 Verona 137 Roma 126 Rimini 109 Source: CERMES Bocconi 2010 and Web Sites 1 Hanover Fiera Milano (Rho site) China Import & Export Fair Complex Guangzhou Frankfurt Köln Düsseldorf McCormick Place Chicago Valencia Paris Expo Porte de Versailles Crocus Expo IEC Moscow 214 Source: AUMA, January 2009 The physical size of Fiera Milano exhibition sites is: the largest in Italy the 2 nd largest in the World Market and Business Model 12

13 Exhibitions Portfolio The Company hosts a diversified and well-balanced portfolio of exhibitions average of 70 exhibitions hosted per year (about 90% are B2B) a very wide range of sectors is represented, especially those where Italian companies are particularly strong and that are connected with Made in Italy portfolio of exhibitions gives some resilience to the economic cycle for many small companies operating in fragmented sectors, trade exhibitions represent the main opportunity to promote their products and services to the market Textiles, clothing & accessories 19.7% Sport - Leisure Health and Environment 6.5% 0.6% Industrial machinery 18.0% Vehicles and related equipments 8.5% Various 0.5% Food - Catering 2.5% Commerce - Services 8,3% Electronics, electrical Communication & Office engineering and energies 0.5% 1.2% Building and related furniture 5.7% Furniture and furnishing 12.2% Antiques and crafted products 4.2% Homeware and gifts 11.6% Data based on sqm rented out in FY2009 in Italy Market and Business Model 13

14 Exhibitions Portfolio: main events Exhibition Sq.metres* Number Industry Frequency ('000) of exhibitors* - Salone del mobile Furniture and furnishing Annual 209 1,560 - Macef primavera + Macef autunno/bijoux Homeware and gifts Annual 181 2,955 - Micam (Spring) + Micam (Autumn) Textiles, clothing & accessories Annual 143 2,940 - Mostra Convegno Expocomfort Building and related furniture Biennial 133 1,500 - Eicma Moto + Eicma Bici Vehicles and related equipments Annual EMO Industrial machinery Multi-year 96 1,415 - Host Commerce - Services Biennial 86 1,055 - Made Expo Architecture, design and building Annual 81 1,355 - Bimu Industrial machinery Biennial Plast Industrial machinery Multi-year 60 1,025 - CPHI Health and Environment Multi-year 58 1,400 - Artigiano in fiera Antiques and crafted products Annual 58 1,630 - Transpotec Vehicles and related equipments Biennial Ipack-Ima Industrial machinery Multi-year Bit Sport - Leisure Annual Milano Unica (Spring) + Milano Unica (Autumn) Textiles, clothing & accessories Annual Mido Textiles, clothing & accessories Annual Xylexpo Industrial machinery Biennial The calendar of biennial and multi-year events creates fluctuations in annual revenues Most exhibitions take place in the first-half of the year * Most recent exhibitions hosted in Italy prior to 30 June 2010 Market and Business Model 14

15 Favourable Payment Cycle Main financial features of the contractual agreements with organisers: standard contract guarantee (minimum guaranteed) significant advance payments treasury management services on behalf of organisers Group s structural negative NWC Advance payments minus FM fees FM SPA Organisers Advance payments (on avg. 6 months for annual, 12 months for biennial) Invoice Exhibitors Commercial relationship Market and Business Model 15

16 Internationalisation Fiera Milano operates in China and India through a strategic alliance with Deutsche Messe AG, leader in Europe and owner of the Hanover exhibition centre. The partnership is managed through HM Global, a German company (51% Deutsche Messe AG and 49% Fiera Milano), which organised exhibitions for more than 170,000 net sq meters and had sales of 14.4 million with a gross operating result of 3.8 million in 2009 On 30 July 2010 Fiera Milano signed a letter of intent to acquire 75% of the share capital of Grupo Cipa, a well-known exhibition company in the Brazilian market with a portfolio of 14 exhibitions (ca. 100,000 gross square metres of exhibition space rented out) and an excellent position, in particular in the safety and security sectors and in the technology sector Ongoing efforts to export top-level exhibitions to fast-growing countries with local partners, starting from Russia Market and Business Model 16

17 Congresses The Group deals with the organisation of congresses, conventions, conferences and events through the management of four congress halls: MIC - Milano Convention Center (Milan) Stella Polare Congress Center (Rho) Villa Erba (Como) MoMeC, Montecitorio Meeting Center (Rome) Fiera Milano will host the largest international Congress Centre in Europe with 18,000 seats as from 2011 following the widening of MIC Market and Business Model 17

18 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Strategy and Actions Section 4. 1 st Half 2010 Financial Highlights Section 5. Business Outlook STAR Conference 2010 Presentation 18

19 Strategy and Future Developments Organisers Offer excellent infrastructure, strengthen and develop top-level services to attract operators Exhibitors Fiera Milano as an integrated communication tool, as well as a support in doing business Buyers and professionals Enabling them to find the best market operators to develop their business Product Develop and strengthen exhibitions in the leading Italian industrial sectors (i.e. lifestyle, technology, design, fashion, food) Services Development and provision of any quality turnkey services (from basic to integrated) Venue management Increase rotation through new exhibitions and new uses for the site Strategy and Actions 19

20 Growth Initiatives Advanced contacts with potential new exhibition organisers from Italy and abroad Business Development Maximisation of exhibition space Internationalisation in fast-growing markets Optimization of existing exhibitions Rationalisation and cost reduction Company restructuring Improved efficiency of energy and facility management services Strategy and Actions 20

21 2009 and 2010 Growth Actions In a highly competitive market strongly impacted by the economic crisis: New exhibitions Over 70,000 net square meters of new exhibitions in 2010 (CAVALLI a MILANO, World Football Show, InterCHARM Milano) Hosting the world's largest international itinerant exhibition in the textile machinery industry in 2015 Relaunch of exhibitions Internationalisation Growth in Macef, in the lifestyle sector, after a decline for eight consecutive editions and decreases in attendees at competing exhibitions Launch of e.tech for energy, electrical systems and lighting in 2011 The signature of a letter of intent for the acquisition of 75% of Grupo Cipa, a well-known company in Brazil Expo 2015 The signature of a memorandum of understanding for the supply of operational, administrative, ICT services and the organisation of congresses Strategy and Actions 21

22 2009 and 2010 Rationalisation Actions Overhead and direct costs New maintenance contract as of 1 July 2010 with savings of ca. 3 million per year Further cost savings in the management of the exhibition site (energy, security services, cleaning ) Personnel expenses Reduction of more than 60 employees following the merger of group companies operating in exhibition organisation Special subsidised redundancy scheme for 85 employees of the parent company (as of 1 October 2010) for 12 months Review of some clauses of the parent company employment contract Waiver of 1.8 million in remuneration by managers in 2010 Group shared services Group restructuring From 15 to 9 national Group companies with a significant decrease in the number of Directors Strategy and Actions 22

23 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Strategy and Actions Section 4. 1 st Half 2010 Financial Highlights Section 5. Business Outlook STAR Conference 2010 Presentation 23

24 Consolidated Profit & Loss FY09 Profit & Loss ( '000) 1H10 1H09 297,146 Revenues 148, , ,669 Operating costs 136, ,628 21,915 Other income 9,821 8,793 20,392 Gross operating result 21,642 25,753 6,9% Gross operating margin (%) 14,6% 14,8% 1st half cover what is the strongest period of the year but were impacted by the current economic stagnation and the reduction of exhibitors investments in marketing and communication -14% thanks to effective cost savings Including Fondazione s support for initiatives aimed at retaining exhibitors Unchanged margin (2,445) Net operating result (EBIT) 14,931 15,852-0,8% Net operating margin (%) 10,1% 9,1% (4,659) Profit/(loss) before income tax 13,893 14,315-1,6% Profit/(loss) before income tax margin (%) 9,4% 8,2% (3,663) Profit/(loss) 8,037 8,875-1,2% Profit/(loss) margin (%) 5,4% 5,1% (3,363) Profit/(loss) attributable to the Group 8,068 8,971-1,1% Profit/(loss) attributable to the Group margin (%) 5,4% 5,1% 1st Half 2010 Financial Highlights 24

25 Consolidated Balance Sheet Balance Sheet ( '000) 30/06/10 31/12/09 Non-current assets 213, ,272 Net working capital (28,913) (55,470) Gross capital employed 184, ,802 Non-current liabilities 38,874 38,468 Net capital employed continuing operations 146, ,334 Net capital employed discontinued operations Total net capital employed 146, ,459 Equity 70,897 62,571 Net financial position 75,218 62,888 Equity and net financial position 146, ,459 Increase in net debt mainly attributable to lower pre-payments for the different exhibition calendar 1st Half 2010 Financial Highlights 25

26 Contents Section 1. Company Overview Section 2. Market and Business Model Section 3. Strategy and Actions Section 4. 1 st Half 2010 Financial Highlights Section 5. Business Outlook STAR Conference 2010 Presentation 26

27 Business Outlook 2010 still impacted by the end of the crisis but recovery should lie ahead 2011 will benefit from new exhibitions (including InterCHARM, CAVALLI a MILANO, World Football Show, In-cosmetics) and the relaunch of the leading directly organised exhibitions Evaluation underway of strategic partnerships with international operators to reposition some exhibitions Strong commitment to host new exhibitions in coming years The new congress centre will be operational in 2011 with a long-term portfolio of international congresses Possible acquisitions of organisers in fast-growing countries Cost savings are expected both from actions already successfully taken and personnel reduction Further Group restructuring is under evaluation The collaboration and synergies with Expo 2015 represent future growth opportunities Tuttofood is expected to become the leading exhibition in the food sector in 2015 Business Outlook 27

28 Forward-Looking Statements Data and information herewith set forth are extracted from Fiera Milano s Half-yearly financial report at 30 June 2010 filed with Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation. 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 forwardlooking 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. 28

29 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