Fiera Milano Group 2011-2014 2014 Industrial Plan Enrico Pazzali Chief Executive Officer STAR Conference Milan, 22 March 2011
Contents 2010 Achievements ew Business Segments & Industrial Plan Financial Targets Closing Remarks Appendices 2
2010 Achievements Return to profitability et profit of 2.1 mn (2009: loss of 3.7 mn) Operating result of 20.4 mn unchanged y-on-y despite a 16% fall in revenues due to less favourable exhibition calendar Material Cut reduction in operating operating costs costs (-18%) with Operating greater costs cost down efficiency 18% with in the cost management efficiencies of in the management of exhibition site site and and in personnel costs ew exhibitions and repositioning of existing exhibitions >60,000 net sq m of new exhibitions, Macef increased in size and profitability, continuing support from the Controlling Shareholder to increase exhibitor loyalty 3 2010 Achievements
Mission and Strategy Fiera Milano aims to become the leading exhibition company in the world Core Business strengthening the exhibition portfolio 4 2010 Achievements Internationalisation
2011-2014 2014 Strategic Priorities Consistent strategy exploiting key strengths Enhance the exhibition portfolio Further internationalisation Expand the range of services Media Company integration and growth Business Development ICT Increase customer loyalty 5 2010 Achievements Increased profitability
Contents 2010 Achievements ew Business Segments & Industrial Plan Financial Targets Closing Remarks Appendices 6
ew Operating Segments Venue and Exhibitions Rent of space and related services to exhibition organisers and direct organisation of exhibitions Services Stand fitting services Congresses Management of conventions and congresses Media Company A multimedia and multi-channel communications system including printed publications, internet and conferences 7 ew Business Segments & Industrial Plan
Plan: Enhance the Exhibition Portfolio Exhibition portfolio ew events to account for 18% of total rented space by 2014 ew exhibitions organised by third parties (e.g. In-cosmetics, in the beauty sector, SPOSA, in the fashion sector) Augment existing exhibitions with new sectors (AbitaMI for Macef, BtoBio for Tuttofood) Launch of e.tech in energy, electrical systems and lighting Increase foreign exhibitors through a newco with Promos Develop new exhibitions launched in 2010 Reposition own exhibitions (e.g. BIT, Transpotec) Services to increase value added Comprehensive data-profiling of both exhibitors and visitors to facilitate effective meetings (matchmaking) Enhance e-commerce sales services to exhibitors Other events Concerts and other events to increase the rotation rate of the exhibition site in summer period 8 ew Business Segments & Industrial Plan
Tools to Increase Value Added Synergies among exhibitions Sector analysis Comparative analysis Overlap analysis Historical trends Geographical analysis Target identification Customer Database CRM Loyalty programs Prospective acquisitions Market penetration activities Communication Promotion Qualitative and quantitative research 9 ew Business Segments & Industrial Plan
Target Growth in et Exhibition Space of fieramilano and fieramilanocity ( 000 sq m) 1,795 1,875 1,855 1,509 1,560 240 360 340 62 195 1,447 1,365 1,555 1,515 1,515 2010A 2011E 2012E 2013E 2014E 10 ew Business Segments & Industrial Plan Actual exhibitions ew exhibitions
Congresses The new Congress Centre will be the largest in Europe expanded from 5,500 seats to 18,000 auditorium expanded from 2,000 seats to 4,500 from 35 meeting rooms with seating for 20-800 to 73 rooms with seating for 20-2,000 increase from 11,500 sq.m of ancillary exhibition space to 54,000 sq.m May 2011 launch: 21st European Congress of Clinical Microbiology and Infectious Diseases A wide portfolio of International congresses scheduled until 2016 11 ew Business Segments & Industrial Plan
Growth in Congresses by 2014 143 187 13 17 20 31 37 46 38 225 10 11 3 27 14 34 57 44 11 20 4 9 73 93 107 Previous Centre ew Congress Centre Total Other Centres Total 50-500 seats 500-1,000 seats 1,000-3,000 seats > 3,000 seats 12 ew Business Segments & Industrial Plan
Internationalisation China Develop the JV with Deutsche Messe Launch new events (e.g. Motormatch) BRIC Countries India Brazil Develop the JV with Deutsche Messe Export own exhibitions (Host and Tuttofood) Develop new events (e.g. Motormatch) Build on recent acquisition of 75% of Grupo Cipa Export own exhibitions (Macef, Host and Tuttofood) Attract exhibitors to Italy Export Grupo Cipa exhibitions (e.g. Reatech) Launch new events (e.g. Motormatch) Russia Export own exhibitions (Macef) Other Countries Cooperate with local partners to export own exhibitions and launch new events 13 ew Business Segments & Industrial Plan
Internationalisation et Exhibition Space ( 000 sq m) 2,045 2,150 2,160 1,694 1,775 250 275 305 185 215 1,509 1,560 1,795 1,875 1,855 2010A 2011E 2012E 2013E 2014E 2010 Gross Operating Profit Data related to the JV with Deutsche Messe corresponds to 100% of total 2014 Gross Operating Profit 9% 17% 14 Italy ew Business Segments & Industrial Plan International activities
Services Expansion olostand operates in the fragmented stand-fitting market As market leader olostand will grow the services it offers to include: in-house exhibition site supply chain services (e.g forklift truck hire, temporary warehousing, transportation) infrastructure-related services (electrical, water and lighting equipment) Customer target will expand to include other stand fitters 15 ew Business Segments & Industrial Plan
Service Company Positioning Value to the Customer Supply chain Pavilions services Fitting Operational Loop Transport Handling & hospitality Equipment & plant management Technical services Rentals Stand building Operational loop Target 90% Stand builders 10% Exhibitors 90% Stand builders 10% Exhibitors 80% Organizers/Exhibitors 20% Stand builders Expected market share P Planning mob/demob Transport hire Assembly/ Dismantling Porterage Electrical equipment Water equipment Rigging services Rigging truss Design furniture Industrial furniture Design Assembly Offer P Transport P Surveillance Heating equipment Lighting Stand fitting components Assistance P Handling P Hospitality stand fitting Compressed air Audio/Visual P Technological equipment Dismantling P Temporary warehousing X Other Other Other P Other Other Legend: Internal offer P Partnership 16 ew Business Segments & Industrial Plan
Media Company Targets To become the second largest media company in exhibition-linked specialist media services through the merger of Fiera Milano Editore, Business International and Expopage To provide customers with a wide range of communication services through a multichannel platform (web, print and face to face) To leverage on the remarkable growth of the web segment 17 ew Business Segments & Industrial Plan
Media Company Integrated Offer On-line services will build on existing sites/portals to provide an integrated offer www.expopage.net www.businessinternational.it www.fieramilanoeditore.it Media Company Portal Sites Portals Banking & Insurance Pharma Telco & Media Public Administration Food Technology Energy Real Estate/Constru ction Function Contents Services AFC Exhibitions Marketing Services Information Technology Marketing & Sales Procurement Supply Chain & Logistics Community/etworking Content/Seminars/Congresses Human Resources 18 ew Business Segments & Industrial Plan
Contents 2010 Achievements ew Business Segments & Industrial Plan Financial Targets Closing Remarks Appendices 19
Consolidated Revenues ( m)( 248 292 348 FY10A FY11E Average FYs 12-14E 20 Financial Targets
Consolidated Gross Operating Profit ( m)( 12.5% 8.2% 9.3% 43 20 27 FY10A FY11E Average FYs 12-14E 21 Financial Targets Gross Operating Profit GOM %
Enhanced Financial Flexibility BBB et Debt/Gross Operating Profit 2.5 0.6 FY11E FY14E 22 Financial Targets
Contents 2010 Achievements ew Business Segments & Industrial Plan Financial Targets Closing Remarks Appendices 23
Closing Remarks Strong improvement in profitability Average 2011-2014 targets: Revenues +35% and Gross operating margin increasing from 8.2% to ca. 11.8% Return Material to reduction remuneration in operating of Shareholders costs (-18%) with greater cost efficiency in the management of the exhibition site and in personnel The net financial position and cash flow generation should ensure the Group can take advantage of M&A opportunities Return to positive net profit of 2.1 million (loss of 3.7 million in 2009) 24 Closing Remarks
Contents 2010 Achievements ew Business Segments & Industrial Plan Financial Targets Closing Remarks Appendices 25
Fiera Milano in brief The Group is the market leader in Italy and one of the world s 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) It hosts an average of 80 exhibitions p.a. in Italy and abroad It has more than 30,000 exhibitors p.a. It rents out an average of 1.9 million net sq m of exhibition space p.a., of which 10% in China and India It has ca. 700 employees 26 Appendices
Group Structure Venues and Exhibitions Congresses Media Company Services Foreign Exhibitions 100% 100% 100% 100% 100% 100% 75% 29.81% 58.5% 100% 49% Hannover Milano Global Germany Hannover Milano Fairs Shanghai ----------------------------------- Hannover Milano Fairs China 100% 99.9% Hannover Milano Fairs India 27 Appendices Including operating companies
Fiera Milano Positioning Fiera Milano is among the world s leading exhibitions sites in terms of Gross Indoor Capacity First 10 Exhibition Sites in the World Source: AUMA, January 2010 Gross Indoor Capacity (Sqm '000) Hanover 495,265 Frankfurt 345,697 Fiera Milano (Rho site) 345,000 Fair Complex Guangzhou 340,000 Köln 284,000 Düsseldorf 263,888 McCormick Place Chicago 248,141 Valencia 230,837 Paris Expo Porte de Versailles 227,380 Crocus Expo IEC Moscow 226,399 1,532,139 Fiera Milano is the European leader for net sqm rented out to international exhibitions 1,435,614 1,205,033 1,193,465 1,140,458 870,138 784,856 749,186 724,416 556,021 Fiera Milano Paris Hanover Düsseldorf Frankfurt Madrid München Köln Bologna ürnberg Source: Cermes Bocconi, 2010 - Data refer to 2007-2008 28 Appendices
Italian Exhibition Portfolio by Sector Health and Environment 2% Textiles, clothing & accessories 20% Sport - Leisure 10% Vehicles and related equipments 6% Food - Catering 1% Furniture and furnishing 14% Antiques and crafted products 5% Industrial machinery 6% Electronics, electrical engineering and energies 1% Building and related furniture 15% Homeware and gifts 14% Commerce - Services 5% Communication & Office 1% 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 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 29 Appendices Data based on sq m rented out in FY2010
Italian Exhibition Portfolio: Main Events Exhibition Sq.metres* umber Industry Frequency ('000) of exhibitors* Salone del mobile Furniture and furnishing Annual 209 1,560 Macef primavera + Macef autunno/bijoux Homeware and gifts Annual 190 2,955 Micam (Spring) + Micam (Autumn) Textiles, clothing & accessories Annual 142 2,940 Mostra Convegno Expocomfort Building and related furniture Biennial 133 1,500 EMO Industrial machinery Multi-year 96 1,415 Eicma Moto Vehicles and related equipments Annual 91 710 Host Commerce - Services Biennial 86 1,055 Made Expo Architecture, design and building Annual 81 1,355 Artigiano in fiera Antiques and crafted products Annual 60 1,630 Plast Industrial machinery Multi-year 60 1,025 30 Appendices Data based on most recent exhibitions hosted prior to 31 December 2010
Consolidated Income Statement (Amounts in '000) FY10 FY09 Revenues 248,358 297,146 Total operating expenses 245,489 298,669 Other income 17,561 21,915 Gross operating result 20,430 20,392 Gross operating margin (%) 8.2% 6.9% et operating result (EBIT) 2,336 (2,445) et operating margin (%) 0.9% -0.8% Profit/(loss) before income tax 207 (4,659) Profit/(loss) before income tax margin (%) 0.1% -1.6% Profit/(loss) 2,074 (3,663) Profit/(loss) margin (%) 0.8% -1.2% Profit/(loss) attributable to the Group 2,192 (3,363) Profit/(loss) attributable to the Group margin (%) 0.9% -1.1% Profit/(loss) attributable to Minorities (118) (300) Profit/(loss) attributable to Minorities margin (%) 0.0% -0.1% 31 Appendices
Reclassified Consolidated Balance Sheet (Amounts in '000) 31 Dec 2010 31 Dec 2009 on-current assets 200,430 206,997 et working capital (27,450) (55,470) Gross capital employed 172,980 151,527 on-current liabilities 24,448 26,193 et capital employed continuing operations 148,532 125,334 et capital employed discontinued operations - 125 Total net capital employed 148,532 125,459 Equity 64,305 62,571 et financial debt 84,227 62,888 Equity and net financial position 148,532 125,459 32 Appendices
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. o 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. one 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. 33
For further information, please contact: Gianna La Rana Investor Relations Manager Fiera Milano SpA Strada Statale del Sempione, 28 20017 Rho (Milano) - ITALY Tel: + 39 02 4997.7816/7911 E-mail: investor.relations@fieramilano.it www.fieramilano.it