Fiera Milano Spa · MIL:FM
Fiera Milano Spa — FY2014 Earnings Presentation
39 slides from Fiera Milano Spa's earnings presentation, Mar 23, 2015
Slide 1: FY 2014 Consolidated Results and 2015-2018 Industrial Plan
www.fieramilano.it FY 2014 Consolidated Results and the strategic guidelines of the 2015-2018 Industrial Plan Fiera Milano Group Conference Call – 23 March 2015 1
Slide 2: Contents
Contents WEANO BS
Slide 3: FY2014 highlights
FY2014 highlights 2014 results reflected not only a less favourable Italian exhibition calendar compared to the previous year but also the prolonged slowdown in the domestic market and were also impacted by the write-down of the trademarks of some trade publications, as well as some non-recurring
Slide 4: Weak Italian economy did not support exhibition industry in the last years
Weak Italian economy did not support exhibition industry in the last years Industrial production Household consumption Italy GDP trend in Italy expenditure Italy Real GDP change (yoy %) Industrial production (€bn) Final consumption expenditures of households (€bn) 3 880 1 020 2 1.7 840 1 000 ‐3% 1 0
Slide 5: Italian exhibition calendar
Italian exhibition calendar Net sq. metres of exhibition space Exhibitions FY14 FY13 Annual exhibitions Directly organised 178,165 198,925 Organised by 3rd parties 716,345 757,085 Total annual exhibitions 894,510 956,010 Biennial exhibitions Directly organised 14,330 199,335 Organised by 3rd parties
Slide 6: Italian exhibitions
Italian exhibitions Italian exhibitions FY14 FY13 Revenues (€'000) 181,098 194,583 Gross operating result (€'000) (12,894) (5,124) % on revenues -7.1% -2.6% Net operating result (€'000) (18,312) (11,806) % on revenues -10.1% -6.1% The decrease in revenues reflected the trend in exhibition space oc
Slide 7: Foreign exhibition calendar
Foreign exhibition calendar Net sq. metres of exhibition space Exhibitions FY14 FY13 Annual exhibitions China 283,345 292,360 Brazil 30,620 30,850 Turkey 25,075 18,880 India 20,550 13,730 South Africa 11,425 11,355 Russia 2,600 1,210 Thailand 2,500 1,500 Total annual exhibitions 376,115 369,885 Bien
Slide 8: Foreign exhibitions
Foreign exhibitions FY14 FY13 Foreign exhibitions restated* Revenues (€'000) 18,786 15,274 Gross operating result (€'000) 1,088 2,798 % on revenues 5.8% 18.3% Net operating result (€'000) (118) 1,644 % on revenues -0.6% 10.8% * Some figures in the Consolidated Financial Statements at 31 December 201
Slide 9: Stand-fitting services
Stand-fitting services Stand-fitting services FY14 FY13 Revenues (€'000) 33,389 33,594 Gross operating result (€'000) 1,895 1,605 % on revenues 5.7% 4.8% Net operating result (€'000) 365 (215) % on revenues 1.1% -0.6% Despite the less favorable exhibition calendar, revenues were basically stable r
Slide 10: Media
Media Media FY14 FY13 Revenues (€'000) 12,334 11,958 Gross operating result (€'000) 415 277 % on revenues 3.4% 2.3% Net operating result (€'000) (4,120) (7,335) % on revenues -33.4% -61.3% The improved revenues and gross operating result were mainly due to higher poster advertising revenues from t
Slide 11: Congresses
Congresses Congresses FY14 FY13 Revenues (€'000) 37,835 24,546 Gross operating result (€'000) 6,045 2,532 % on revenues 16.0% 10.3% Net operating result (€'000) 3,373 566 % on revenues 8.9% 2.3% The increase in revenues and margins was mainly due to the use of the MiCo Congress Centre for meetings
Slide 12: Consolidated Income Statement
Consolidated Income Statement FY14 FY13 Consolidated Income Statement (€'000) restated* Revenues 245,457 245,057 Gross operating result (3,338) 2,155 Margin (%) -1.4% 0.9% Net operating result (EBIT) (18,793) (17,087) Margin (%) -7.7% -7.0% Profit/(loss) before income tax (23,692) (20,932) Margin (%
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 31/12/14 31/12/13 Consolidated Statement of Financial Position (€'000) restated* Non-current assets 204,730 209,402 Net working capital (44,135) (49,186) Gross capital employed 160,595 160,216 Non-current liabilities 19,240 20,929 Total net capital employ
Slide 14: Consolidated Net Financial Position
Consolidated Net Financial Position 31/12/14 31/12/13 Consolidated Net Financial Position (€'000) restated * Cash (including bank balances) 12,276 11,416 Other cash equivalents - - Securities held for trading - - Cash & cash equivalents 12,276 11,416 Current financial assets - 635 Current bank borro
Slide 15: Fiera Milano SpA
Fiera Milano SpA • The difficult economic environment in Italy and the unfavourable exhibition calendar had an impact on the results of the Parent Company in 2014: the net loss was Euro 30.7 million • The net loss also reflected Euro 14.9 million of impairment charges for investments in the subsidia
Slide 16: Contents
Contents WEANO BS
Slide 17: The global exhibition market is growing
The global exhibition market is growing Mature markets have also returned to growth after a period of stagnation Global exhibition organizing market (US$ bn) CAGR CAGR 35 '09-'11 '11-'13 30 3.4% 28.1 27.0 25.7 24.6 24.7 Emerging 10.0% 8.1% 25 6.6 6.2 Markets1 4.7 5.7 5.1 20 Slight slowdown in growth
Slide 18: Italy was the only large exhibition market that fell in 2011-2013
Italy was the only large exhibition market that fell in 2011-2013 Global exhibition market 2013 by country, in $bn 11.8 Revenue in $bn 12 9 6.6 6 3 2.3 1.7 1.6 1.6 0.9 0.8 0.8 0 US Germany China France UK Russia Italy Brazil RoW CAGR 11–13 3.9 10.5 8.1 3.3 -0.3 9.9 -9.5 5.4 5.2 in % Source: AMR inte
Slide 19: Three main trends in the trade fair industry
Three main trends in the trade fair industry 2 Internationalization Growing share of business from international events for key market players • Leveraging on geo-cloning of successful domestic exhibitions 1 One-stop shop 3 Digital services Leadership in industry sector in Increased use of digital E
Slide 20: Outlook: main industry sources project significant growth in the next five years
Outlook: main industry sources project significant growth in the next five years AMR market estimate and forecast Global exhibition organizing market (US$ bn) 45 Forecast 40 4.7% 35.3 35 33.7 32.4 3.4% 30.7 Emerging 30 29.3 9,6 28.1 8,9 Markets 27.0 8,3 25.7 7,7 25 24.6 24.7 7,1 6,6 6,2 4,7 5,1 5,7
Slide 21: The exhibition industry expects a slow recovery in the Italian market
The exhibition industry expects a slow recovery in the Italian market in the next five years Based on assumption of modest economic Italian exhibition organizing market (US$ bn) recovery in Italy 1.5 Forecast 1.1 -6.9% 1.1 1.6% 1.0 1.0 1.0 1.0 0.9 0.9 0.8 0.9 0.8 Italy is expected 0.5 by industry ex
Slide 22: Fiera Milano strategic plan 2015-2018: the three main pillars
Fiera Milano strategic plan 2015-2018: the three main pillars Return to profitable growth Creare valore per l'azionista Maximize shareholder value in the medium term 1 2 3 Build a Take Maximize portfolio of international potential of leading business to ancillary exhibitions the next level businesse
Slide 23: First strategic pillar: Build a portfolio of leading exhibitions
First strategic pillar: Build a portfolio of leading exhibitions Main elements Establish leadership of proprietary fairs with high potential • Consolidate leadership of HOST through completion of offer (e.g. ice‐cream & bread‐making machinery) and increase the presence of international exhibitors 1
Slide 24: Most Italian exhibitions are organized by venue operators or trade associations
Most Italian exhibitions are organized by venue operators or national trade associations Top 10 exhibitions in Italy by net exhibition space (sqm, 2014) Venue Organizer I Saloni 219,000 Milan COSMIT HOMI (MACEF) 140,000 Milan Fiera Milano MICAM 136,000 Milan A.N.C.I. SERVIZI Mostra Conv. Expoconfort
Slide 25: Large-scale growth potential identified in three sectors
Large-scale growth potential indentified in three sectors of Fiera Milano's exhibition portfolio 25
Slide 26: Tuttofood third exhibition in EU within food segment by size
Tuttofood third exhibition in EU within food segment by size, but growing fast Top five exhibitions for food segment Total net exhibition space (last available edition - k sqm) 200 152 150 9 118 100 40 143 701 6 552 50 5 45 8 Institutional 78 64 Product 50 37 categories 0 Anuga Sial Tuttofood Alimen
Slide 27: HOMI third exhibition in homeware segment
HOMI third exhibition in homeware segment Top five exhibitions for homeware segment Total net exhibition space (last 2 available editions1 - k sqm) 250 242 225 Tendence 200 150 140 Focused mainly on gift sector 100 Ambiente 64 55 50 0 Ambiente Maison&Objet HOMI Intergift Christmasworld (with Tendenc
Slide 28: Second strategic pillar: Take the international business to the next level
Second strategic pillar: Take the international business to the next level Main elements Build large‐scale geo‐clones of leading domestic exhibitions • Develop HOST and TUTTOFOOD geo‐clones through JVs with complementary exhibitions 2 • Develop geo‐clones of HOMI (Russia) and introduce the exhibitio
Slide 29: Geo-clones of leading domestic exhibitions
Geo-clones of leading domestic exhibitions Proprietary exhibitions exported from Italy HOMI to: Russia (Moscow) USA (New York) Food Hospitality World to: India (Bangalore; Mumbai) China (Guangzhou) Brazil (São Paulo) South Africa (Cape Town) Tuttofood to: USA (Chicago and San Francisco
Slide 30: Third strategic pillar: Maximize potential of ancillary businesses
Third strategic pillar: Maximize potential of ancillary businesses Main elements Boost stand‐fitting penetration • Increase penetration in the Rho and Fiera Milano city venues of standard fittings by 20% through a targeted go‐to‐market approach and product 3 innovation • Develop external markets (It
Slide 31: Stand fitting growth driven by increased penetration in Rho venue
Stand fitting growth driven by increased penetration in Rho venue and expansion into external markets Increase +20 p.p. of market share on small stands penetration in • Upgrade products through modernization of current design shell scheme and acquisition of new materials Increase market share on Ita
Slide 32: Development of Digital business introducing new products and partnering
Development of Digital business introducing new products and partnering with specialist operator Development/ introduction of new digital products and services to support organized fairs • Introduction of lead generation and branded contents in addition to display ads to increase monetization potent
Slide 33: Congresses business with potential to grow further
Congresses business with potential to grow further Increase current market share on large congresses (>3k participants) with higher service expenditure than smaller ones Focus on large • Potential to increase current market share on large events congress • Mico infrastructure able to host large even
Slide 34: 2015 financial targets (Euro mn)
2015 financial targets (Euro mn) In 2015, the first year of the 2015-2018 Industrial Plan, forecasts are for consolidated revenues of over Euro 330 million and a consolidated gross operating margin of 10% The first two months of 2015 have shown strong growth in results from operations: consolida
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Slide 36: Fiera Milano SpA Income Statement
Fiera Milano SpA Income Statement Fiera Milano SpA Income Statement (€'000) FY14 FY13 Revenues 181,098 194,523 Gross operating result (12,887) (4,989) Margin (%) -7.1% -2.6% Net operating result (EBIT) (18,315) (11,676) Margin (%) -10.1% -6.0% Profit/(loss) before income tax (35,901) (15,275) Margin
Slide 37: Fiera Milano SpA Statement of Financial Position
Fiera Milano SpA Statement of Financial Position Fiera Milano SpA Statement of Financial Position (€'000) 31/12/14 31/12/13 Non-current assets 193,906 209,262 Net working capital (42,298) (46,505) Gross capital employed 151,608 162,757 Non-current liabilities 7,631 9,047 Total net capital employed 1
Slide 38: Forward-Looking Statements
Forward-Looking Statements Data and information herewith set forth are extracted from the Fiera Milano Press Release issued on 20 March 2015 filed with Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation. This document has been prepared by Fi
Slide 39: Fiera Milano SpA
Fiera Milano SpA For further information, please contact: Gianna La Rana Investor Relations Manager Camilla Cusi Investor Relations 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 39