Fiera Milano Spa · MIL:FM
Fiera Milano Spa — Virtual STAR Conference 2021 - Spring edition
47 slides from Fiera Milano Spa's conference presentation, Mar 24, 2021
Slide 1: Fiera Milano Group - Virtual STAR Conference 2021
Fiera Milano Group Virtual STAR Conference 2021 Spring edition March 24th, 2021
Slide 2: Agenda
Agenda 01. Group overview 02. Market scenario 03. 2021-2025 Strategic Plan – CONN.E.C.T. 2025 04. 2021-2025 Targets & projections 05. FY 2020 Results 06. Back-up – Strategic framework 1
Slide 3: Group overview
01 Group overview 2
Slide 4: Fiera Milano: a history of growth of more than 100 years
Fiera Milano: a history of growth of more than 100 years Turnaround and Foundation Spin off and listing Internationalization relaunch Eight entrepreneurs organize the Ente Autonomo Fiera Milano China, South Africa, Brazil Internal re-organization and first exhibition in Milan; in 1922, Ente spins of
Slide 5: The Group is active in businesses: Exhibitions, Services, Venue, Congresses
The Group is active in 4 businesses Exhibitions Services Venue Congresses organization Direct organization of Provision of services to Host of third party Direct management of one proprietary exhibitions, organizers, exhibitors and exhibitions, providing of the largest and most providing space to vi
Slide 6: Leading Italian operator in the Exhibition industry - Covid-19 crisis interrupted growth
Fiera Milano is the leading Italian operator in the Exhibition industry – Covid-19 crisis in 2020 interrupted 2017-19 growth trend In line with Italian market trend Key highlights +4% Covid-19 • 2017-19: significant -74% profitability improvement 256 247 280 Revenues mainly linked to cost [EUR m] 74
Slide 7: Selection of key players in the Exhibition Industry
Fiera Milano has one of the largest venues in the exhibition market, but with lower levels of internationalization and direct organization of events Selection of key players in the Exhibition Industry Revenues 2,2601) [EUR m, 2019] 1,447 1) 1,173 Venue play er 736 474 4741) 413 379 346 3221) Global
Slide 8: Well diversified portfolio almost entirely B2B, Made in Italy appeal
A well diversified portfolio almost entirely B2B and exposed to sectors where the label “Made in Italy” has strong appeal Tourism - Sport - Others; Food - Catering; Leisure; 2.7% 3.7% Furniture and 5.9% furnishing; Vehicles and 13.8% related equipment; 8.3% Art and crafted products; 3.6% Homeware an
Slide 9: Fiera Milano a big impact on Italian economy
Fiera Milano a big impact on Italian economy and… of which in Lombardy € 8.1 billion € 4.3 billion Total impact of Fiera Milano Effect generated by Fiera Milano: € 6.6 billion Contribution to public budget: € 1.5 billion This is the effect associated to suppliers, This is direct, indirect and induce
Slide 10: ...on its Italian exhibitors
…on its Italian exhibitors Revenues of Italian exhibitors from their participation at €17.5 billion in exports, equal to 38% of the annual Fiera Milano events in 2019: turnover generated through their participation in Fiera €46.6 billion, equal to approximately 6% of the overall Milano’s trade fairs
Slide 11: Shareholder structure
Shareholder structure Fondazione Fiera Milano is a non-profit private law foundation, whose corporate mission is the development of the exhibition sector in Italy and abroad Ente Autonomo Fiera Internazionale di Milano 63.8% Market Float 29.28% Treasury shares 0.38% Camera di Commercio Metropolitana
Slide 12: Market scenario
02 Market scenario 11
Slide 13: Exhibition market dropped by 68% in revenues in 2020
After Covid-19 impact, in 2020 Exhibition market dropped by 68% in revenues compared to 2019 Exhibition market size – Main 14 countries Estimated decline in mkt size – [2015-20E; USD bn] Main 14 countries [2020 vs '19] USA -72% China -51% +4% -68% Germany -68% 28.4 UK -72% 27.5 25.3 26.1 France -75%
Slide 14: Exhibitions market rebound expected in 2024 for Europe and US
Exhibitions market rebound to pre-Covid levels expected in '24 for Europe and US, possibly '23 for Asia – Global congresses recovery expected already in '23 Key highlights 2021 2022 2023 2024 … Europe & US: Q1 Q2 Q3 Q4 FY FY FY … • No events in Q1 2021, Exhibitions sector Outlook expected recovery s
Slide 15: 2021-2025 Strategic Plan
03 2021-2025 Strategic Plan CONN.E.C.T. 2025 (Connections, Exhibitions, Community, Transformation) 14
Slide 16: Purpose and Mission
Fiera Milano aims at becoming the leading reference platform in the exhibitions and congresses business in the New Normal Purpose Be the leading smart Creating a world of hybrid platform opportunities for for innovative, businesses and sustainable and individuals through business-relevant our Europe
Slide 17: Strategic Framework
Strategic Framework Key pillars Enablers HR Transformation & Organizational Alignment Services & contents Exhibitions Commercial and Product platform organization Development excellence Congresses Venue Digital transformation Investment on the Venue and continuous improvement Source: Fiera Milano, R
Slide 18: Strategic goals for each key business area
Fiera Milano Group defined strategic goals for each key business area Services and Exhibitions Venue Congresses contents platform organization Capture full potential Strengthen portfolio of Secure and enhance Consolidate and expand of both traditional and organized exhibitions hosted exhibitions and
Slide 19: Services & Contents platform
Services & Contents platform Create and leverage a one-stop-shop platform-driven business model Value proposition Fiera Milano to develop a holistic network of high-end 3rd-party suppliers of services and connecting them to clients by leveraging a "phygital" business landscape Key pillars Services o
Slide 20: Exhibitions organization
Exhibitions organization Re-positioning and scale-up framework1) Strengthen current portfolio Partnerships with Increase size, national/ international relevance and Re-positioning and scale-up leading players attractiveness • Recover performances and grow own exhibitions; example: exploit Host's int
Slide 21: Venue
Venue Main initiatives Maximize venue exploitation Develop alliances to consolidate Services Exhibitions portfolio (e.g. simultaneous and co- (traditional organization located combination of leading events and digital) in strategic industries) Venue Support Hosted exhibitions' Occupancy performance
Slide 22: Congresses
Congresses Main initiatives Exploit state-of-the art congress center to foster FM's growth path and enhance positioning Collaborate with other national and international venues for Joint Business Development FM to become the main leading congress center in Europe by leveraging a state-of-the-art ven
Slide 23: Key strategic enablers
Key strategic enablers related to evolution of resources / competencies, processes, digital and physical infrastructures Enablers and Goals Commercial and HR Transformation & Product Investments on the Organizational Digital Venue & continuous Development transformation Alignment improvement excelle
Slide 24: EUR 90-100m investments on the venue and CapEx plan
≈ EUR 90-100m investments on the venue backed by FFM together with EUR ≈ 25m by Fiera Milano – Focus on Digital, Sustainability, Ops Excellence and Customers CapEx plan [2021-25; EUR m] ≈ 25 115-125 Investments on the Venue Backed by FFM 90-100 10% 15% Incl. EUR ≈ 10-15 25% m of digital transformati
Slide 25: Committed to ambitious sustainability goals
FMG committed to pursue ambitious sustainability goals, responsibly creating value for customers and industries, for its people and for communities Key ESG Environment People/ Human Social Fighting Corruption Human Rights and Dimensions Capital Sustainable SCM 1 SDGs GOALS > Develop > Enhance human
Slide 26: 2021-2025 targets & projections
04 2021-2025 targets & projections 25
Slide 27: 2025 targets: revenues, EBITDA and net cash
In '25, FMG expected to achieve EUR ≈ 290-310 m revenues and EUR ≈ 110-120 m EBITDA; net cash projected to a range of EUR ≈ 75-85 m by '25 Key financials 2019-25 – Overview Remarks • Exhibitions assumed to restart in Revenues EBITDA1) Net Financial Position2) Q2 2021, assuming successful [EUR m] [EU
Slide 28: Digital transformation and services drive EBITDA and sold area trend
Digital transformation and focus on services are key drivers to overachieve 2019 EBITDA in 2025 despite an expected reduction in sold area EBITDA1) and Sold Area trend 2021-2025 Remarks [EUR m, SQM m] • Continued recovery over the period 2021-2025 110 – 120 106 • Expectation of a like-for-like 2) 85
Slide 29: Alternative scenario: exhibition restart in September
Exhibition restart in September vs May 2021 would mainly impact 2021 revenues and EBITDA and cumulative cash generation Key financials 2021-25 – Alternative scenario Revenues EBITDA1) Net Financial Position2) [EUR m] [EUR m] [EUR m] 290-310 110-120 5-(5) 10-0 180-200 160-180 40-50 35-45 (70)-(80) (7
Slide 30: Additional opportunities and potential risks
Additional opportunities have been identified and could be leveraged by FMG to gain full potential; potential risks mainly coming from exogenous factors Potential EBITDA impact Commercial agreements/ key partnerships in exhibition sector M&A Upsides / Opportunities New organized exhibitions/ new con
Slide 31: Specific ESG targets
On top of financial targets, FMG set specific ESG targets ESG Dimension KPI Actual 20191) Target 2025 > % electric energy from Environment renewables 12% 50% > % employees included in People & performance and leadership Human Capital management (PLM) with at 20% 100% least one ESG goal > % employees
Slide 32: Forward-looking statement
FORWARD-LOOKING STATEMENT • 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 re
Slide 33: FY 2020 results
05 FY 2020 results 32
Slide 34: Financial overview - Income Statement
Financial overview – Income Statement Remarks Consolidated Income Statement (€m) FY 2020 FY 2019 • FY 2020 results heavily Revenues 73.6 279.7 penalised by the prolonged Cost of materials 1.6 2.5 suspension of exhibition Cost of services 45.5 121.2 activities due to the Covid-19 Costs for use of 3rd
Slide 35: Financial overview - Reclassified Statement of Financial Position
Financial overview – Reclassified Statement of Financial Position Reclassified Consolidated Statement of Financial Position (€m) FY 2020 FY 2019 Non-current assets 593.8 622.5 Net working capital (35.4) (87.7) Gross Capital Employed 558.4 534.8 Non current liabilities 21.7 21.9 Total net Capital Emp
Slide 36: Net Financial Position
2.6 Net Financial Position Consolidated Net Financial Position (€m) FY 2020 FY 2019 Cash & cash equivalents 20.4 68.0 Current financial assets 1.3 1.3 Current bank borrowings 49.0 0.0 Current portion of non-current debt 0.0 0.0 Other current financial liabilities 1.7 1.1 Current financial debt 50.8
Slide 37: Back-up - Strategic Framework
06 Back-up – Strategic Framework 36
Slide 38: COVID-19 outbreak driving emerging trends for the exhibition industry
COVID-19 outbreak driving emerging trends for the exhibition industry • Ensure consumer safety with respect to events and gatherings Health & safety as priority • Technological investments in venues to follow safety regulations • Vaccine release and distribution in Q1-Q2 2021 to limit virus spreadin
Slide 39: Traditional services
Services & Contents Platform Traditional services Increase value capturing along the value chain Average exhib itors' spending b y service category [2019; %] Current Future Focus developments ≈ 15% ≈ 20 % ≈ 3% ≈ 10% Hospitality, Venue room and Freight Passengers rental board logistics transport Stan
Slide 40: Digital services
Services & Contents Platform Digital services Capture full potential from digital services Ambition : 15% incidence on Revenues1) Digital services: key axes Virtual / hybrid events Hybrid Data & 1 solutions 2 Information solutions 3 Transactional solutions • Digitalization of traditional services •
Slide 41: Contents community
Services & Contents Platform Contents community Create and animate an active community around Fiera Milano ecosystem through contents Strategic guideline Fiera Milano to develop a holistic community ecosystem living beyond the fair, both physically and digitally Audience/ partners Organizers Content
Slide 42: Outgoing internationalization strategy
Exhibitions organization Fiera Milano outgoing internationalization strategy is focused on few projects but with sizeable targets in attractive geographies and strategic industries Key 1st gate 2nd gate 3rd gate selection criteria Strategic goals Geographies / Industries Size Long list of internatio
Slide 43: Development of new sectors / concepts
Exhibitions organization Development of new sectors / concepts is the result of a structured process, aiming at identifying attractive opportunities Monitoring and Assessment and Feeding the pipeline of analysis of sectors prioritization of sectors opportunities Silver age and elderly care > Coheren
Slide 44: Advanced solutions to be launched in 2021
Fiera Milano has already developed advanced solutions to be launched in '21 Phygital touch-points 1 Organizer portal single portal to manage all services and exhibitor/ buyers' needs 2 Exhibitor portal single portal to manage all exhibition-related services 3 Fitter portal single portal to manage en
Slide 45: Strategic phases by business area
In a 1st strategic phase, focus on business excellence, scaling-up and on preparing for business transformation, that is then realized in a 2nd phase Strategic phases Excel, scale and prepare for Realize and exploit transformation transformation Enhance penetration in traditional services Services &
Slide 46: Italian exhibition revenues expected double digit growth 2021-25
Fiera Milano's annual and biennial exhibitions expected to achieve a positive double digit growth rate in 2021-25 Italian exhibition revenues breakdown 2021-25 [EUR m] CAGR 2021-'251) 11% 245 220 212 14 Multi-year 19 Biennial, 170 95 Biennial 19% 88 161 8 odd years 21 139 81 37 Biennial, 13 7% even
Slide 47: Thanks for your attention
Thanks for your attention For f urther inf ormation, please contact: Inv estor Relations Department Tel +39 02.4997.7816/7911 email: inv estor.relations@f ieramilano.it Fiera Milano S.p.A. Sede legale: Piazzale Carlo Magno 1, Registro Imprese di Milano 0123456789 T +39 01.2345.6789 20149 Milano, Ita
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