Fiera Milano Spa · MIL:FM
Fiera Milano Spa — STAR Conference 2015
47 slides from Fiera Milano Spa's conference presentation, Mar 24, 2015
Slide 1: Fiera Milano Group - STAR Conference 2015
www.fieramilano.it STAR Conference 2015 Fiera Milano Group Milan, 24 March 2015 1
Slide 2: Contents
Contents 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 Total gross exhibition space: Net exhibition space occupied: 388,000 square metres 1,634,425 square metres of which of which 414,300 square
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 exhibi
Slide 5: 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 t
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 In the World In Italy 449 359 345 340 345 284 262 243 242 240 231 237 152 109 Source: AUMA, January 2014 Source: EMECA, July 2014 6
Slide 7: 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 8: Global presence
Global presence Fiera Milano is a successful organiser of exhibitions in fast-growing countries RUSSIA THAILAND* No. exhibitions: 1 No. exhibitions: 1 Employees: 3 CHINA** No. exhibitions: 21 Employees: 85 62 exhibitions organised abroad in 2014 ITALY INDIA** No. exhibitions: 51 No. exhibitions:10 E
Slide 9: Shareholder structure
Shareholder structure Fiera Milano is controlled by Fondazione Fiera Milano, a non-profit private law foundation, whose corporate mission is the development of the exhibition sector in Italy and abroad 9 Source: Shareholders’ register as at 29 April 2014 and communications received pursuant to art.
Slide 10: 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 11: 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 12: Italy was the only large exhibition market that fell in 2011-2013
Italy was the only large exhibition market that fell in 2011-2013 Source: AMR international Globex report 2014 12
Slide 13: Contents
Contents 13
Slide 14: 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 15: 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 16: Slow recovery expected in the Italian market in the next five years
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 17: 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 18: 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 19: 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 20: Large-scale growth potential identified in three sectors
Large-scale growth potential indentified in three sectors of Fiera Milano's exhibition portfolio 20
Slide 21: HOST with strong leadership position in Europe within hospitality sector
HOST with strong leadership position in Europe within hospitality sector Top five exhibitions for hospitality segment Total net exhibition space (last available edition - k sqm) Hospitality fairs 150 Specialized fairs 101 Bread & Bakery 100 Furniture for 81 Relevant presence of hospitality F&B categ
Slide 22: TUTTOFOOD third exhibition in EU within food segment
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 23: 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 24: 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 25: 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 26: 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 27: Stand fitting growth driven by increased penetration and external markets
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 28: Development of Digital business
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 29: 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 30: 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% In 2015, the Group should benefit not only from the economic recovery in Italy, now conside
Slide 31: Contents
Contents 31
Slide 32: Exhibition space rented out in Italy
Exhibition space rented out in Italy, affected by weak economy and calendar (‘000 sq m) 1,509 1,531 1,476 1,334 27 12 1,220 283 108 299 14 295 324 17 275 1,183 1,236 1,073 996 928 2010 2011 2012 2013 2014 Annual Biennial Multi-year 32
Slide 33: Significant growth in foreign activities
Significant growth in foreign activities 62 exhibitions organised abroad in 7 countries in 2014 +16% CAGR in net exhibition space in 2008-2014 33
Slide 34: Revenues
Revenues Consolidated revenues (€ million) 2014 Revenues by operating segment Figures have been adjusted following the adoption of the new IFRS 11 Joint arrangements Gross of adjustments for inter-segment transactions figures 34
Slide 35: 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 36: 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 37: 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
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Slide 39: Fiera Milano history
Fiera Milano history 1920 1922 1960-1970 1980 Eight entrepreneurs Fiera Milano Campionaria Fiera Campionaria grows Fiera Campionaria becomes organise the first trade fair Internazionale (“Ente at a fast pace becoming “Fiera d’Aprile”. In addition to in Milan aimed at showing Autonomo”) is set up by
Slide 40: Italian exhibition portfolio: main events
Italian exhibition portfolio: main events Sq.metres Number Exhibition Industry Frequency ('000) of exhibitors Salone del m obile + Eurocucina + Salone del Bagno Furniture and furnishing Annual 219 1,520 HOMI (Spring) + HOMI (Autum n) Hom ew are and gifts Annual 140 2,330 Micam (Spring) + Micam (Autu
Slide 41: 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 42: Congresses
Congresses Fiera Milano Congressi 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, ancil
Slide 43: 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 44: 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
Slide 45: 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 46: Forward-Looking Statements
Forward-Looking Statements This document has been prepared by Fiera Milano SpA 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 rel
Slide 47: 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 47