Fiera Milano Spa · MIL:FM
Fiera Milano Spa — STAR Conference 2014
40 slides from Fiera Milano Spa's conference presentation, Oct 3, 2014
Slide 1: Fiera Milano Group
www.fieramilano.it STAR Conference 2014 – London Stock Exchange Fiera Milano Group London, 3 October 2014 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 Figures refer to FY2013 3
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 449 359 345 340 284 345 262 243 242 240 231 237 152 109 Source: AUMA, January 2014 Source: EMECA, July 2014 6
Slide 7: Exhibition market
Exhibition market 10% 5% 4% 5% 3% 1% 0% 2009 2010 2011 2012 2013 ‐5% -3% ‐10% -9% ‐15% -14% -13% ‐20% -16% Overall exhibition market Italian exhibition market Source: AMR International Globex report 2014 The exhibition industry is strongly linked to the performance of the underlying economy with a
Slide 8: 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
Slide 9: Decisive cost rationalisation initiatives
Decisive cost rationalisation initiatives Rationalisation of site management costs: renegotiation of Structural supply contracts, synergies between Group companies, -26% in 2009-2013 costs enhanced procedural efficiencies Significant structural interventions Rationalisation of the organisation
Slide 10: 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 11: Global presence
Global presence 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 abroad in 2013 SINGAPORE since 2012
Slide 12: 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 12 Source: Shareholders’ register as at 29 April 2014 and communications received pursuant to art.
Slide 13: Contents
Contents 13
Slide 14: Exhibition space rented out in Italy
Exhibition space rented out in Italy (‘000 sq m) 1,531 1,509 1,476 1,334 14
Slide 15: Significant growth in foreign activities
Significant growth in foreign activities 59 exhibitions organised abroad 59 in 8 countries in 2013 43 33 19 15 15 0 +19% CAGR in net exhibition space in 2008-2013 15
Slide 16: Revenues
Revenues 2013 Revenues by operating segment Figures have been adjusted following the adoption of the new IFRS 11 Joint arrangements Figures, gross of adjustments for inter-segment transactions, include revenues of Joint Ventures 16
Slide 17: Income Statement
Income Statement 2013 1H14 1H13 restated* Consolidated Income Statement (€'000) restated* 245,057 Revenues 138,582 132,725 2,155 Gross operating result 5,046 4,620 0.9% Gross operating margin (%) 3.6% 3.5% -17,087 Net operating result (EBIT) -570 1,117 -7.0% Net operating margin (%) -0.4% 0.8% -20,9
Slide 18: Net Financial Position
Net Financial Position 30/06/14 31/12/13 Consolidated Net Financial Position (€'000) restated * Cash (including bank balances) 13,178 11,416 Other cash equivalents - - Securities held for trading - - Cash & cash equivalents 13,178 11,416 Current financial assets 1,706 635 Current bank borrowings 51,
Slide 19: Contents
Contents 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 exhibition
Slide 21: From MACEF to… HOMI
From MACEF to… HOMI The first two editions of HOMI took place in January and September 2014 in an exhibition space of more than 140,000 net sq metres with 2,600 national and international exhibitors and selected buyers HOMI is the new international Lifestyle exhibition, focusing on the home and
Slide 22: The satellite format
The satellite format LIVING HABITS HOME WELLNESS CONCEPT LAB a -_ A FRAGRANCES & el PERSONAL CARE HOBBY i v & WORK ae eS Be ih FASHION & JEWELS GIFTS & EVENTS KID STYLE GARDEN & OUTDOOR
Slide 23: BIT
BIT Definition of a new format and Brand Image New segments are added to traditional Leisure sector (Mice, Luxury, Digital–Technology) New area dedicated to Sport & Active Holidays to increase B2C Visitors on Saturday New contents to offer to exhibitors and visitors (1st Tourism Congress, 1s
Slide 24: 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 24
Slide 25: International strategy
International strategy EXPORT EXPORT EXHIBTIONS 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-parti
Slide 26: Expo 2015
Expo 2015 EXPO 2015 S.p.A. Countries participating in EXPO 2015 Fiera Milano became an Official Partner for Operations of Expo Fiera Milano will offer local know-how and will supply a full 2015 range of top quality services: structural design and construction, facility management, catering and mar
Slide 27: Contents
Contents 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 deve
Slide 29: Appendix
WLAN BS
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: 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, ancill
Slide 32: 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 33: Italian exhibition portfolio: main events
Italian exhibition portfolio: main events Sq.metres Number Exhibition Industry Frequency ('000) of exhibitors Salone del mobile + Eurocucina + Salone del Bagno Furniture and furnishing Annual 219 1,520 HOMI first semester + Macef Autunno Bijoux Homeware and gifts Annual 142 2,460 Micam (Spring) + Mi
Slide 34: 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 35: Synergies across continents
Synergies across continents Own exhibitions exported from Italy HOMI to: Russia (Moscow since 2014) Food Hospitality World to: India (Bangalore since 2012; Mumbai since 2012) China (Guangzhou since 2012) Brazil (São Paulo since 2013) South Africa (Cape Town since 2014) Third-party exhibiti
Slide 36: 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 37: Rental contract
Rental contract On 31 March 2014 Fiera Milano and the Controlling Shareholder Fondazione Fiera Milano, owner of the exhibition sites in Rho and Milan, signed the leasing contracts of the exhibition sites Rho site the rent will be Euro 24.4 million in the second half 2014 and Euro 38.8 million
Slide 38: Statement of Financial Position
Statement of Financial Position 30/06/14 31/12/13 Consolidated Statement of Financial Position (€'000) restated* Non-current assets 209,193 209,402 Net working capital -39,941 -49,186 Gross capital employed 169,252 160,216 Non-current liabilities 21,524 20,929 Total net capital employed 147,728 139,
Slide 39: 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 40: 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: [email protected] www.fieramilano.it 40