Fiera Milano Spa · MIL:FM
Fiera Milano Spa — STAR Conference 2014
41 slides from Fiera Milano Spa's conference presentation, Mar 26, 2014
Slide 1: Fiera Milano Group STAR Conference Presentation
Fiera Milano Group Presentation STAR Conference Presentation Milan, 26 March 2014
Slide 2: Contents
Contents • Market and company overview • Financials • Strategy • Closing remarks • Appendix 2
Slide 3: Fiera Milano in brief
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) Fiera Milano is a successful
Slide 4: Fiera Milano mission
Fiera Milano mission Fiera Milano offers a means for companies to grow and become more international It contributes to economic growth It promotes socio-economic improvement in the region in which it is based The Company’s aims are: to feature among the leading global companies in the exhibition sec
Slide 5: Estimated economic imprint of Fiera Milano's operations
Estimated economic imprint of Fiera Milano’s operations ECONOMIC FOOTPRINT IN THE REGION Euro 4.3 billion Energy 3% Agriculture, Mining Hotels And Construction 2% Commerce 3% 34% Transport 12% Manufacturing 16% Business and other services The ratio between the revenues of the 30% organiser and total
Slide 6: Fiera Milano's market position
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 Gross Indoor Gross Indoor Leading Exhibition Sites Capacity Top 10 Exhibitions Sites Capacity in Italy (sq m. '000) in the World (sq m
Slide 7: Exhibition market
Exhibition market Source: AMR International Globex Report The exhibition industry is strongly linked to the performance of the underlying economy with a lag of 6-12 months In 2009 the market plummeted by 14% due to the global financial crisis Since 2007 the European exhibition sector has suffered fr
Slide 8: Exhibition market by country
Exhibition market by country * Germany is like-for-like growth Source: AMR International Globex Report 8
Slide 9: Fiera Milano in the macroeconomy
Fiera Milano in the macroeconomy 2008-2009 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 t
Slide 10: Decisive cost rationalisation initiatives
Decisive cost rationalisation initiatives ACTION UNDERTAKEN Rationalisation of site management costs Labour cost containment initiatives Corporate reorganisation: merger of similar and synergistic companies Centralisation of departments: shared Group services Renegotiation of rent of the Rho exhibit
Slide 11: Rental contract
Rental contract On 14 March 2014 Fiera Milano and the Controlling Shareholder Fondazione Fiera Milano, owner of the exhibition sites in Rho and Milan, reached an agreement on the rent of the exhibition sites Rho site the rent will be Euro 24.4 million in the second half 2014 and Euro 38.8 million pe
Slide 12: After 6 years and over Euro 40 million invested
After 6 years and over Euro 40 million invested… Fiera Milano is a successful organiser of exhibitions in fast-growing countries RUSSIA since 2011 THAILAND* since 2013 No. exhibitions: 1 No. exhibitions: 1 Employees: 3 CHINA** since 2008 No. exhibitions: 20 Employees: 86 59 exhibitions organised abr
Slide 13: Synergies across continents
Synergies across continents Own exhibitions exported from Italy HOMI to: Brazil (São Paulo since 2012) Russia (Moscow since 2012) Food Hospitality World to: India (Bangalore since 2012; Mumbai since 2012) China (Guangzhou since 2012) Brazil (São Paulo since 2013) and South Africa (Cape Tow
Slide 14: Financials
Contents • Market and company overview • Financials • Strategy • Closing remarks • Appendix 14
Slide 15: Exhibition space rented out
Exhibition space rented out (‘000 sq m) 1,818 1,830 1,739 1,694 15
Slide 16: Consolidated revenues
Consolidated revenues 2012 Revenues by operating segment 16 Gross of adjustments for inter-segment transactions
Slide 17: Consolidated Income Statement
Consolidated Income Statement Income Statement (€'000) FY13 FY12 Revenues 258,142 263,408 Gross operating result 3,333 17,933 Gross operating margin (%) 1.3% 6.8% Net operating result (EBIT) (15,966) 2,105 Net operating margin (%) -6.2% 0.8% Profit/(loss) before income tax (19,634) (1,098) Profit/(l
Slide 18: Significant growth in foreign activities
Significant growth in foreign activities 59 43 59 exhibitions organised abroad 33 in 8 countries in 2013 19 15 15 0 +19% CAGR in net exhibition space in 2008-2013 18
Slide 19: Strategy
Contents • Market and company overview • Financials • Strategy • Closing remarks • Appendix 19
Slide 20: Strategic guidelines
Strategic guidelines Fiera Milano is focused on its core business with the strategic aim of consolidating its leadership position and expanding further in foreign markets The strategic guidelines of the Group are: Strengthening the exhibition portfolio in Italy through the launch of new exhibitions
Slide 21: From MACEF to HOMI
From MACEF to… HOMI The first edition of HOMI was held in January 2014 on a gross exhibition space of 80,000 sq m with 1,500 national and international exhibitors and 94,000 visitors HOMI is the new international lifestyle exhibition, focusing on the person, his/her environment and his/her habits HO
Slide 22: The satellite format
FIERA MILANO LIVING HABITS HOME WELLNESS CONCEPT LAB FRAGRANCES & PERSONAL CARE HOBBY & WORK FASHION & JEWELS HOME TEXTILES GIFTS & EVENTS KID STYLE GARDEN & OUTDOOR
Slide 23: In order to operate at a global level you must see the world as it is
In order to operate at a global level you must see the world as it is WE MAY NOT BE AT THE CENTRE OF THE WORLD THE RELATIONSHIP BETWEEN COUNTRIES MAY DIFFER FROM HOW WE IMAGINE IT 23
Slide 24: International strategy
International strategy EXPORT EXPORT EXHIBITIONS PROPRIETARY EXHIBITIONS OWNED BY THIRD-PARTIES Export proprietary exhibitions to Use the Group’s international platform to fast-growing countries develop outside Italy those exhibitions Bring foreign proprietary brands to Italy organised by third-part
Slide 25: The future international presence of the Group
The future international presence of the Group EASTERN RUSSIA NORTH EUROPE AMERICA EU NORTH AFRICA CHINA SINGAPORE INDIA TURKEY SOUTH ASIA AMERICA Direct sales network MIDDLE SOUTH EAST Subsidiaries BRAZIL AFRICA Partnerships and JV Development areas 25
Slide 26: Expo 2015
Expo 2015 Investments totalling Euro 2.6 billion are expected - 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 EXPO 2015 S.p.A. Countries participating in EXPO 2015 F
Slide 27: Closing remarks
Contents • Market and company overview • Financials • Strategy • Closing remarks • Appendix 27
Slide 28: Closing remarks
Closing remarks Leadership in the Italian and European trade show market with a wide and diversified portfolio of exhibitions, almost entirely B2B Presence in fast-growing countries and a strategy focused on further international development to capture the demand in dynamic countries and on developi
Slide 29: Appendix
Contents • Market and company overview • Financials • Strategy • Closing remarks • Appendix 29
Slide 30: Fiera Milano history
Fiera Milano history 1920 1922 1960-1970 1980 Eight entrepreneurs Fiera Milano Campionaria Fiera Campionaria grows at Fiera Campionaria becomes organise the first trade fair Internazionale (“Ente a fast pace becoming the “Fiera d’Aprile”. In addition in Milan aimed at showing Autonomo”) is set up by
Slide 31: Group structure
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 MEDIA STAND-FITTING SERVICES A multimedia and multi-channel Management of conventions and communica
Slide 32: Italian and foreign exhibitions
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 thi
Slide 33: Congresses
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 exhibiti
Slide 34: Stand-fitting services and Media
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
Slide 35: Exhibition sectors by country
Exhibition sectors by country Italy Brazil China India Russia Singapore South Africa Turkey Thailand AGRICULTURE, FORESTRY, FISHERY ART AUTOMOBILES, MOTORCYCLES BEAUTY AND PERSONAL CARE BUSINESS SERVICES, RETAIL CONSTRUCTION, INFRASTRUCTURE ENERGY, OIL, GAS AUTOMATION AND ENGINEERING FOOD AND BEVERA
Slide 36: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position Statement of Financial Position (€'000) 31/12/13 31/12/12 Non-current assets 205,181 212,701 Net working capital (52,848) (46,734) Gross capital employed 152,333 165,967 Non-current liabilities 24,035 26,474 Net capital employed continuing operations 128,
Slide 37: Consolidated Net Financial Position
Consolidated Net Financial Position Net Financial Position (€'000) 31/12/13 31/12/12 Cash (including bank balances) 19,754 19,400 Other cash equivalents - - Securities held for trading - - Cash & cash equivalents 19,754 19,400 Current financial assets 324 - Current bank borrowings 42,706 62,842 Curr
Slide 38: Favourable payment cycle
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 S.
Slide 39: Shareholder structure
Shareholder structure 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 On 13 November 2012, 600,000 treasury shares (1.42% of the share capital) were placed with leading institutio
Slide 40: Forward-Looking Statements
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
Slide 41: For further information, please contact
For further information, please contact: Gianna La Rana Investor Relations Manager Camilla Cusi Investor Relations Fiera Milano S.p.A. Strada Statale del Sempione, 28 20017 Rho (Milan) - ITALY Tel: + 39 02 4997.7816/7911 E-mail: investor.relations@fieramilano.it www.fieramilano.it