Investor Presentation • Nov 19, 2018
Investor Presentation
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Mid & Small in Milan
Milan, 19 November 2018
Strategic Plan 2018-2022
Fiera Milano is the market leader in Italy and one of the world's leading operators across the entire value chain of the exhibition industry
Italian Exhibitions: Fiera Milano organises proprietary exhibitions providing exhibition space and services directly to exhibitors; it also uses exhibition sites to host exhibitions for third parties
Congresses: management of one of most modern convention centre in Europe and the only one capable of hosting up to 18,000 delegates Hospitality: assisting its customers travel arrangements through accommodation services, site location, flight tickets, Visa procedures, transfers, train tickets
Stand fitting services: concept design & engineering, exhibitions & booths, including shell scheme area, lounges, public space and outdoor structures
Media: online and offline content and publishing services, management courses, event organisation
Foreign Exhibitions: outside domestic market, organiser of exhibitions in Brazil, South Africa, China and India
Total gross exhibition capacity 399,000 sqm of which 345,000 sqm fieramilano site 54,000 sqm fieramilanocity site
Net exhibition space occupied 1,888,965 sqm of which 371,760 sqm abroad
Number of exhibitions 83 of which 29 abroad
Number of exhibitors 36,385 of which 8,600 abroad
Consolidated revenues* Euro 256 million (+24% vs. 2016)
Group permanent employees 693 of which 100 abroad
Congresses 165 congresses 345,000 participants
Number of training events 114
Number of technical publications 10 (580,000 copies)
Number of publishing portals
10
Stand fittings
160,000 sqm fitted and furnished
The number one exhibition entity in Italy and one of the main exhibition entities worldwide in terms of gross indoor exhibition space
| Exhibition | Industry | Frequency | Sq. Meters | Number of exhibitors |
|---|---|---|---|---|
| Salone del Mobile / Eurocucina / Salone del Bagno |
Furniture and furnishing | Annual/Biennial | 220,415 | 1,360 |
| HOST | Horeca | Biennial | 137,005 | 2,060 |
| The Innovation Alliance | Processing and packaging machinery | Multi-year | 136,435 | 2,515 |
| The MICAM (Spring and Autumn) | Textile, clothing & accessories | Biannual | 125,995 | 2,635 |
| HOMI (I and II semester) | Homeware and gift | Biannual | 121,165 | 2,455 |
| EMO | Industrial machinery | Multi-year | 116,995 | 1,540 |
| Mostra Convegno Expocomfort |
Building and related furniture | Biennial | 115,400 | 1,570 |
| ITMA | Textile machinery | Multi-year | 109,570 | 1,690 |
| Eicma Moto |
Vehicles and related equipment | Annual | 109,160 | 695 |
| Lineapelle (I and II semester) |
Leather | Biannual | 99,340 | 2,260 |
| Tuttofood | Food | Biennial | 64,770 | 1,235 |
| Made Expo | Architecture, design and building | Biennial | 52,515 | 800 |
MICO WELL-RANKED AMONG TOP EUROPEAN CONGRESSES PLAYERS
Exhibitions
A well diversified portfolio of exhibitions, almost entirely B2B
The Group is strong in dynamic markets (with sound growth expectations and where the "Made in Italy" label has appeal)
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Fondazione Fiera Milano is a non-profit private law foundation, whose corporate mission is the development of the exhibition sector in Italy and abroad
Group overview
Updated as at 23 April 2018
High visibility on revenues due to long-term contracts with organisers
Main financial clauses in the contractual agreements with organisers:
The Group has structural negative NWC
Exhibition market expected to keep growing at 4% CAGR
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Maximize venue potential
Invest in core industry sectors
Build on human capital
• Develop geo-clones of top owned brands leveraging partnerships (Focus on China & USA)
Create a smarter venue Step up organization
• Full service, eco-compatible and innovative infrastructure
• Enhanced organization, empowered governance and integrated systems
Data-rich venue Highest safety standards
Environmental Sustainability & Innovation
Best-in-class sustainable venue (eg. solar roof coverings)
Maximum accessibility for suppliers, exhibitors & visitors
Operational Excellence
Experience
Enhanced Customer
Shortest time to customer Seamless customer experience
18
Strategic targets do not reflect and/or include any effect from M&A activity
Yearly Net Profit expected positive throughout period of strategic plan
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Full-year EBITDA: -1% to +6% ('16 vs. '17) 9M 2018 EBITDA: € 41.1m (vs. € 0.7m in 9M 2017) Recurring costs addressed +3pp profitability through efficiencies Upgrade of 2018 EBITDA target from € 17m to € 28-30m
Exhib. performance 2017 vs previous edition Sicurezza +39% sqm (+47% visitors) Host +3% sqm (+31% visitors)
In 2018 successful first edition of The Innovation Alliance (150,000 visitors of which 27% international) Return to the STAR segment on 30 April 2018 FMG Stock performance +109%1 vs. end 2017
to e-commerce packaging in China
Restructuring plan launched in Brazil Recovery in profitability in South Africa Strengthening of the Chinese portfolio through the acquisition of new exhibitions Launch of the new E-PACK TECH event, dedicated
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We have a strong leadership trust We have a clear definition of the ingredients for our success
We are on track In the execution of our strategic plan We have completed the new organisation, started our investments and are strengthening our portfolio of exhibitions abroad
We will not be caged by our venue We'll seek most promising opportunities where they are
We take our social responsibility seriously We will actively ensure our business will have a sustainable impact
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 reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
None of the company, its affiliates, or its representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
This document includes forward-looking statements. These forward-looking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a results of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.
This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
The Manager responsible for preparing the company's financial reports, Marco Pacini, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this document corresponds to the document results, books and accounting records.
For further information, please contact: Investor Relations Department Tel +39 02.4997.7816/7911 email: [email protected]
Fiera Milano SpA S.S. del Sempione 28 20017 Rho (Milano) - Italia www.fieramilano.it
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| FY17 restated* |
Consolidated Income Statement (€m) |
9M18 | 9M17 restated* |
|---|---|---|---|
| 256 3 |
Revenues | 193 3 |
177 4 |
| 3 2 |
Cost of materials |
1 9 |
2 5 |
| 133 3 |
Cost of services |
83 9 |
100 7 |
| 49 9 |
Costs for of 3rd-party assets use |
37 8 |
37 4 |
| 48 9 |
Personnel expenses |
33 6 |
33 8 |
| 5 4 |
Other operating expenses |
3 0 |
3 8 |
| 240 7 |
Total operating costs |
160 2 |
178 3 |
| 2 6 |
Other income |
2 1 |
1 9 |
| 2 6 |
of Results equity-accounted companies |
6 8 |
1 7 |
| 8 5 |
Allowance for doubtful and other provisions accounts |
1 0 |
2 0 |
| 15 1 |
EBITDA | 41 1 |
0 7 |
| 6 8 |
Depreciation and amortisation |
4 5 |
1 5 |
| 2 9 |
Adjustments values to asset |
0 0 |
0 0 |
| 5 4 |
EBIT | 36 6 |
(4 5) |
| (0 8) |
Financial income/(expenses) |
(0 1) |
(0 8) |
| 4 6 |
Profit/loss before income tax |
36 5 |
(5 3) |
| 4 3 |
Shareholders of which attributable of the controlling entity to |
36 8 |
(5 4) |
* Starting with the Consolidated Financial Statements at 31 December 2017, operating profitability is calculated as EBITDA; therefore the 2017 figures, which showed the gross operating profit, have been restated to reflect this reclassification. The figures for 2017 also reflect the application of the new standard IFRS 15 from 1 January 2018.
| Consolidated Statement of Financial Position (€m) |
30/09/18 | 31/12/17 |
|---|---|---|
| Non-current assets |
150 7 |
151 5 |
| Net working capital |
(59 3) |
(74 3) |
| Gross capital employed |
91 4 |
77 3 |
| Non-current liabilities |
13 3 |
13 4 |
| Total capital employed net |
78 1 |
63 8 |
| Equity | 99 7 |
63 0 |
| financial position Net |
(21 6) |
0 8 |
| Equity and financial position net |
78 1 |
63 8 |
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