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Fiera Milano

Quarterly Report Oct 26, 2015

4073_ir_2015-10-26_ca16f83b-224f-48e9-9ede-e2978f9005d4.pdf

Quarterly Report

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Co nsolida ated In at 30 nterim M Septem Manage mber 20 ement R 015 Report

(3 3rd Quarte er 2015)

T This document is available in th he Investor Rela www.fieram ations section o milano.it of the Company website,

O Companies R Reg Operational and Register, Tax c gistered office d administrativ Share Capita ode and VAT Fiera Milan : Piazzale Car ve office: SS d al: Euro 42,147 no. 13194800 no SpA lo Magno, 1 del Sempione, 7,437.00 fully 0150 – Econom 20149 Milan , 28 - 20017 R paid up mic Administra Rho (Milan) ative Register 1623812

Rho (Milan), 26 O October 2015 5

Contents

CORPORATE BODIES AND INDEPENDENT AUDIT FIRM page 3
BUSINESS MODEL page 4
GROUP STRUCTURE page 5
REPORT ON OPERATIONS IN THE THIRD QUARTER 2015

Summary of results and significant events during the quarter
page 6

Net financial position
page 11

Information by operating segment and by geographic area
page 12

Group personnel
page 16
SIGNIFICANT EVENTS AFTER THE END OF THE QUARTER page 17
BUSINESS OUTLOOK AND EVALUATION OF THE BUSINESS AS A GOING CONCERN page 17
ACCOUNTING CRITERIA page 18
FINANCIAL STATEMENTS

Consolidated income statement
page 19

Reclassified consolidated statement of financial position
page 20

Comments on the capital and financial position
page 21
DECLARATION OF THE MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S
FINANCIAL STATEMENTS
page 22
ATTACHMENT 1
List of companies included in the area of consolidation and other equity
investments at 30 September 2015
page 23

__________________________________________________________________________________

Corporate Bodies and Independent Audit Firm

______________________________________________________________________________

BOARD OF DIRECTORS

Roberto Rettani Chairperson*° Licia Ronzulli Vice Chairperson *° Corrado Arturo Peraboni Chief Executive Officer Joyce Victoria Bigio Director*° Renato Borghi Director° Pier Andrea Chevallard Director*° Vincenza Patrizia Rutigliano Director*° Romeo Robiglio Director

Attilio Fontana Deputy Vice Chairperson *°

* Independent director under the Self-Regulatory Code of the Italian stock exchange.

° Independent director under Article 148, paragraph 3 of Legislative Decree no. 58 of 24 February 1998.

CONTROL AND RISK COMMITTEE REMUNERATION COMMITTEE

Joyce Victoria Bigio Attilio Fontana Renato Borghi Romeo Robiglio Vincenza Patrizia Rutigliano Licia Ronzulli


Federica Nolli Chairperson Pier Andrea Chevallard Antonio Guastoni Statutory Auditor Federica Nolli Carmine Pallino Statutory Auditor Ugo Lecis Francesca Maria D'Alessandro Substitute Auditor Alessandro Carlo Galli Substitute Auditor

BOARD OF STATUTORY AUDITORS SUPERVISORY BOARD under Legislative decree 231/01

MANAGER RESPONSIBLE FOR PREPARING THE COMPANY'S FINANCIAL STATEMENTS UNDER LAW 262/2005

Flaminio Oggioni

The Board of Directors and the Board of Statutory Auditors were appointed at the Shareholders' Meeting of 29 April 2015 and their mandates expire with the Shareholders' Meeting to approve the Financial Statements at 31 December 2017.

The Board of Directors is invested with the widest powers for the ordinary and extraordinary management of the Company, excluding only those which by law are the preserve of the Shareholders' Meeting.

The Chairman, in addition to legally representing the Company and performing the duties as required by law and by the Company's articles of association, also, in conjunction with the Chief Executive Officer, has the following responsibilities: relations with shareholders, national and international institutional relations, internationalisation activities, strategic and innovative initiatives, coordinating the work of the Board of Directors for the appointment of new Directors, verification of the implementation of the Board of Directors' resolutions and supervision of the internal audit.

The Chief Executive Officer has ordinary and extraordinary administrative powers, except for those relating to certain specific matters that include the acquisition or disposal of investments, obtaining loans that exceed 30% of the Company's equity, the stipulation of contracts for assets, excluding leases for the conduct of Company business of less than six years duration, approval of the budget for the year, and the grant of guarantees to third parties.

AUDIT FIRM

Reconta Ernst & Young SpA

The mandate, given by the Shareholders' Meeting of 29 April 2014, is for the financial years 2014-2022.

Business model

The Fiera Milano Group is involved in all the characteristic phases of the exhibition and congress sector and is one of the leading international integrated companies in this sector.

__________________________________________________________________________

Its operating segments are:

  • Italian Exhibitions: this segment covers all activities for the organisation and hosting of exhibitions and other events in Italy through the use, promotion and offer of furnished exhibition spaces, of project support, and of ancillary services. This segment includes all activities associated with exhibitions (including end services for exhibitors and visitors):
  • that are directly organised by the Group or in partnership with third-parties;
  • organised by third parties, through the hiring out of spaces and services.
  • Foreign Exhibitions: this segment covers all activities for the organisation of exhibitions and other events abroad through the use, promotion and offer of furnished exhibition spaces, of project support, and of ancillary services. Specifically this segment includes all activities associated with exhibitions (including end services for exhibitors and visitors) that are directly organised by the Group or in partnership with third-parties.
  • Stand-fitting services: this segment covers stand-fitting services, technical services and all exhibition site services for exhibitions and congresses.
  • Media: this segment covers the production of content and supply of on line and off line publishing services, as well as those associated with the organisation of events and congresses.
  • Congresses: this segment covers the management of conferences and events, as well as destination management services.

Group structu re

Report on operations in the third quarter 2015

Summary of results and significant events during the quarter

The following table gives the main figures of the Group for the third quarter 2015 with comparable data for the same quarter and the nine-month period of the previous year, as well as figures for the full year 2014.

Full year
at 31/12/14
restated
Fiera Milano Group
Summary of key figures
(A mo unts in € ' 000)
3rd Quarter
at 30/09/15
3rd Quarter
at 30/09/14
restated
9 months
at 30/09/15
9 months
at 30/09/14
restated
242,711 Revenues from sales and services 46,848 51,939 228,380 189,535
(3,159) Gross operating result (a) (9,536) (2,132) 17,179 3,173
(18,345) Net operating result (EBIT) (12,217) (5,236) 557 (5,446)
(23,216) Profit/(loss) before income tax from continuing operations (14,068) (6,139) (3,444) (8,959)
(476) Profit/(loss) before income tax from discontinued operations 9 (163) (1,988) (553)
(23,692) Profit/(loss) before income tax (14,059) (6,302) (5,432) (9,512)
(23,456) - Attributable to the shareholders of the controlling entity (14,080) (6,212) (4,654) (8,866)
(236) - Attributable to non-controlling interests 21 (90) (778) (646)
(8,506) Cash flow before income tax for the Group and non-controlling interests (b) (11,378) (3,198) 11,190 (893)
141,355 Net capital employed (c) 96,474 154,526 96,474 154,526
covered by:
17,034 Equity attributable to the Group 13,378 * 26,392 * 13,378 * 26,392 *
2,654 Non-controlling interests 349 * 2,189 * 349 * 2,189 *
121,667 Net financial debt/(cash) 82,747 125,945 82,747 125,945
8,515 Investments 2,248 1,061 4,898 7,594
807 Employees (no. of permanent employees at the end of period) 797 821 797 821
* includes pre-tax result for the period
(a) Gross operating result is the result before depreciation and amortisation, adjustments to asset values and other provisions.
(b) Cash flow is the sum of the result for the period, depreciation and amortisation and provisions.
(c) Net capital employed is the sum of non-current assets, non-current liabilities and net working capital.

Following the application of IFRS 5, the divestment of the subsidiary Interteks on 27 July 2015 required some of the figures in the consolidated financial statements at 31 December 2014 and in the interim consolidated financial statements at 30 September 2014 to be restated for comparative purposes.

For structural reasons the third quarter of the financial year is loss-making for Fiera Milano Group as it is marked by low levels of business during the summer months of July and August. The presence of one-off events in the same quarter of the preceding financial year, such as the meetings for Italy's six-month presidency of the European Union that were held at the MiCo Congress Centre, the increase in Parent Company costs in the quarter under review due to some redundancy payments, the variable component of employee remuneration, as well as the variable rental charge for the fieramilano exhibition site resulted in lower revenues and a decline in the gross operating result compared to the same period of 2014, and generated higher losses. The Italian exhibition business increased in the quarter due to the exhibition HOMI, whilst outside Italy, there was a decrease in the Brazilian business mainly due to the less favourable exhibition calendar in the quarter under review.

The Group generated revenues of Euro 5.349 million in the quarter from contracts linked to Expo 2015 of which Euro 3.028 million was from the Parent Company for the contract under which Fiera Milano rented areas within the exhibition site totalling approximately 120,000 square metres to Expo 2015 for vehicle circulation and parking and Euro 2.321 million was from the subsidiary Fiera Milano Congressi for managing the Expo 2015 Congress Centre and Auditorium.

On 31 July 2015, an Extraordinary Shareholders' Meeting approved a share capital increase on a paid basis and in divisible form for a total maximum amount, inclusive of any share premium, of Euro 70 million to be offered to all holders of shares in the Company in accordance with Article 2441, paragraph 1 of the Italian Civil Code, through the issue of new ordinary shares with normal entitlement and identical in character to the shares already in circulation at the time of issue. The share capital increase is to be carried out within a period of 12 months from the date of approval granted by the Extraordinary Meeting. The Extraordinary Shareholders' Meeting also granted the Board of Directors the necessary powers to determine, in the period prior to the start of the rights issue, the definitive amount of the capital increase, the number of shares to be issued, the ratio at which they will be offered to existing shareholders, and the timing of the share capital increase.

The share capital increase will provide new financial resources to support the Group investment and development plan. Furthermore, the share capital increase should help achieve the required improvement in the capital position of the Company so that it can avoid the provisions under Article 2446, paragraph 2 of the Italian Civil Code whilst, at the same time, strengthening shareholders' funds and reducing financial leverage.

On 20 July 2015, Fondazione Fiera Milano, the controlling shareholder of Fiera Milano with a shareholding of 62.062%, gave a binding agreement to exercise all its rights to subscribe and pay for its quota of the new shares. Furthermore, at the Extraordinary Shareholders' Meeting on 31 July 2015 that approved the share capital increase, Fondazione Fiera Milano formally stated its intention to pay in cash for its quota of the share capital increase and not to offset the amount by using the debits in the current account held by Fiera Milano with Fondazione Fiera Milano.

On 23 July 2015, the Parent Company finalised the acquisition of 100% of Ipack-Ima SpA and paid the vendor Centrexpo SpA Euro 2.500 million and the net cash position of the company acquired. Ipack-Ima SpA owns the following trademarks and already organises the trade exhibitions associated with these trademarks in the Fiera Milano exhibition site: Ipack-Ima (triennial), one of the world's leading events for food and non-food processing and packaging technologies; Meat-Tech (triennial), an exhibition for processing and packaging in the meat industry; Dairytech (triennial), an exhibition for treatment and packaging technologies in the dairy sector; Fruit Innovation (biennial), an exhibition for technology and services in the fruit and vegetable sector (of which Fiera Milano owns 50%); Intralogistica, a triennial exhibition for corporate internal logistics plant and equipment (50% owned by Deutsche Messe).

On 27 July 2015, the Parent Company sold its 60% shareholding in the Turkish subsidiary Interteks Uluslararasi Fuarcilik A.S. Turkey is no longer considered a strategic country for the Group given the downgrading of future growth expectations for the local exhibition sector.

On 29 July 2015, Euro 0.600 million was paid as part of the share capital increase of Fiera Milano Exhibitions Africa Pty Ltd.

The business of the Group suffers from seasonality due to exhibitions that have a biennial and multiannual frequency. Moreover, the absence of exhibitions in Italy in July and August have a significant impact on the results of the third quarter. Given the seasonal nature of the Group's activities, the revenues and results reported in individual quarters cannot be extrapolated to calculate the full-year figures and may vary substantially from one quarter to the next.

A detailed analysis of the results for the third quarter 2015 and for the nine-month period at 30 September 2015 reveals the following trends:

Revenues from sales and services totalled Euro 46.848 million, a 10% decline compared to the same quarter of the preceding financial year (Euro 51.939 million). The decrease was mainly due to the presence in the same period of 2014 of the meetings for Italy's six-month presidency of the European Union that were held at the MiCo Congress Centre and of the biennial exhibition Fesqua in Brazil. This was in part compensated by revenues from contracts linked to Expo 2015. In the first nine months of 2015 revenues from sales and services totalled Euro 228.380 million, an increase of 20% compared to the same period of 2014 Euro 189.535 million). The higher revenues reflected the more favourable exhibition calendar which, in the period under review, included the directly organised biennial exhibition Tuttofood, the hosted exhibition Made Expo, and the triennial exhibitions Ipack-Ima and Plast. There were also positive performances from the stand-fitting and congress segments due to the contracts linked to Expo 2015. These positive events were offset by the

absence of the important biennial exhibition Mostra Convegno Expocomfort and by the fall in exhibition space occupied in Brazil.

The main changes were as follows:

  • Annual exhibitions organised by the Group in Italy (+5,970 square metres): the increase was mainly due to an increase in the exhibition space occupied by the biannual exhibition HOMI II semester (+6,005 square metres);
  • Annual exhibitions organised by third parties in Italy (-1,785 square metres): the figure was in line with that of the third quarter 2014;
  • Biennial exhibitions organised by third parties in Italy (+1,130 square metres): the increase reflects the presence of Chem Med, a biennial exhibition that falls in unevennumbered years;
  • Congresses with related exhibition space (-75 square metres): this was almost unchanged compared to the same quarter of 2014;
  • Annual exhibitions organised by the Group abroad (+675 square metres): the figure was in line with that of the third quarter 2014;
  • Biennial exhibitions organised by the Group abroad (-12,335 square metres): this figure mainly reflected the absence of Fesqua-Vitech in Brazil (-13,845 square metres).

The table on the following page gives a summary of the net square metres of exhibition space occupied by the various Fiera Milano Group exhibitions and by congresses with related exhibition space.

Fiera Milano Group
Summary operating figures
3rd Quarter at 30/09/15 3rd Quarter at 30/09/14 Change
Organised
Total
by the Group
Total Organised
by the Group
Total Organised
by the Group
Number of exhibitions: 17 10 16 11 1 (1)
Italy 9 2 7 2 2 -
. annual 8 2 7 2 1 -
. biennial 1 - - - 1 -
. multi-annual - - - - - -
Foreign countries 8 8 9 9 (1) (1)
. annual 7 7 8 8 (1) (1)
. biennial 1 1 1 1 - -
. multi-annual - - - - - -
Number of congresses with related
exhibition space - Italy
7 - 4 - 3 -
Net sq.metres of exhibition space: 309,805 164,205 316,225 169,895 (6,420) (5,690)
Italy 212,015 66,415 206,775 60,445 5,240 5,970
. annual (a) 210,885 66,415 206,775 60,445 4,110 5,970
. biennial 1,130 - - - 1,130 -
. multi-annual - - - - - -
(a) of which congresses with related exhibition space 5,295 - 5,370 - (75) -
Foreign countries 97,790 97,790 109,450 109,450 (11,660) (11,660)
. annual 96,280 96,280 95,605 95,605 675 675
. biennial 1,510 1,510 13,845 13,845 (12,335) (12,335)
. multi-annual - - - - - -
Number of exhibitors: 6,440 2,725 6,105 2,210 335 515
Italy 5,100 1,385 5,100 1,205 - 180
. annual (b) 5,050 1,385 5,100 1,205 (50) 180
. biennial 50 - - - 50 -
. multi-annual - - - - - -
(b) of which congresses with related exhibition space 415 - 380 - 35 -
Foreign countries 1,340 1,340 1,005 1,005 335 335
. annual 1,295 1,295 720 720 575 575
. biennial 45 45 285 285 (240) (240)
. multi-annual - - - -

• The Gross operating loss for the quarter was Euro 9.536 million, a decrease of Euro 7.404 million compared to the figure for the same period of the previous financial year. The decrease is mainly attributable to the trend in revenues in the period and, in particular, to the decrease in the congress business described above although offset by revenues from contracts linked to Expo 2015 and the increase in Parent Company personnel expenses due to redundancy payments (Euro 0.516 million) and in the variable remuneration of employees (Euro 0.682 million). There was also a Euro 2.505 million increase in rental charges for the fieramilano exhibition site for the additional rent payable to Fondazione Fiera Milano resulting from the agreement that a percentage of the revenues generated by the Company in the 2015 financial year would be paid to Fondazione Fiera Milano were they to exceed the average generated in the three years 2012-2014. Under the agreement the Parent Company will pay additional rent equal to 15% of the aforementioned difference up to a maximum amount of Euro 10.000 million.

The gross operating profit for the first nine months of 2015 was Euro 17.179 million, an increase of Euro 14.006 million compared to the figure for the same period of the previous financial year. The improvement mainly reflected the trend in revenues in the period and the absence of extraordinary costs for the relaunch and internationalisation of the exhibition HOMI that were present in the same period of 2014. There was an increase in personnel expenses in the Parent Company due to an indemnity of Euro 1.461 million paid to the previous Chief Executive Officer when his mandate was not renewed, to higher costs for the variable component of employee remuneration (Euro 2.047 million), and to redundancy incentives paid in the period (Euro 1.350 million).

• The Net operating loss was Euro 12.217 million compared to a loss of Euro 5.236 million in third quarter 2014. The deterioration in this figure of Euro 6.981 million was mainly due to the increase in the gross operating loss.

In the first nine months of 2015, the net operating profit was Euro 0.557 million (a net operating loss of Euro 5.446 million at 30 September 2014). The increase in net operating profit reflected the increase in the gross operating profit but also adjustments to fair value taken on goodwill and on some trademarks following an indication of impairment. The impairment charges were for goodwill in the Brazilian subsidiary, the goodwill and trademarks of the South African subsidiary and for the Transpotec & Logitec exhibition trademark in the Parent Company. The circumstances surrounding these businesses were particularly negative causing forecasts for their results and growth expectations to be downgraded.

  • The Loss before income tax was Euro 14.059 million compared to a pre-tax loss of Euro 6.302 million in third quarter 2014. The loss before income tax attributable to the controlling shareholder was Euro 14.080 million (a pre-tax loss of Euro 6.212 million in the third quarter 2014) and there was a loss before income tax of Euro 0.021 million attributable to non-controlling interests (a pre-tax loss of Euro 0.090 million in the third quarter 2014).
  • Cash flow in the quarter (calculated as the pre-tax result plus depreciation, amortisation and provisions) was negative for Euro 11.378 million compared to a negative figure of Euro 3.198 million in the same quarter of the previous financial year.

Net financial position

The Group net financial position and its breakdown are shown in the following table.

Group Net Financial Position
31/12/14 (Amounts in € '000) 30/09/15 30/06/15 Change
12,276 A. Cash (including bank balances) 19,893 17,190 2,703
- B. Other cash equivalents - - -
- C. Securities held for trading - - -
12,276 D. Cash and cash equivalents (A+B+C) 19,893 17,190 2,703
- E. Current financial assets - - -
62,908 F. Current bank borrowings 23,501 34,192 (10,691)
19,986 G. Current portion of non-current debt 18,952 19,948 (996)
22,150 H. Other current financial liabilities 42,062 37,498 4,564
21,683 - H.1 of which Other current financial liabilities to the controlling shareholder 41,276 36,538 4,738
300 - H.2 of which Other current financial liabilities to other related parties - - -
105,044 I. Current financial debt (F+G+H) 84,515 91,638 (7,123)
92,768 J. Current net financial debt (cash) (I-E-D) 64,622 74,448 (9,826)
26,898 K. Non-current bank borrowings 15,970 16,996 (1,026)
- L. Debt securities in issue - - -
2,001 M. Other non-current liabilities 2,155 2,139 16
1,781 - M.2 of which Other non current liabilities to other related parties 1,827 1,812 15
28,899 N. Non-current financial debt (K+L+M) 18,125 19,135 (1,010)
121,667 Net financial debt/(cash) from continuing operations (J+N) 82,747 93,583 (10,836)
- Net financial debt/(cash) from discontinued operations - 784 (784)
121,667 O. Net financial debt/(cash) 82,747 94,367 (11,620)

Net debt at 30 September 2015 was Euro 82.747 million compared to Euro 94.367 million at 30 June 2015.

The Euro 11.620 million decrease in net debt was due to an increase in cash flow from working capital from advances and cash-in for exhibitions held in the quarter under review or due to be held in subsequent months (in particular, EMO and Host). This was in part offset by early payment to Fondazione Fiera Milano of the six-month rental charge for the fieramilano exhibition site.

Business performance by operating segment and by geographic area

The key Group figures by operating segment and by geographic area are given in the following
table.
Summary of data by operating segment
and by geographic area
(Amounts in € '000)
3rd Quarter at 30/09/15 3rd Quarter at 30/09/14
restated
9 months at 30/09/15 9 months at 30/09/14
restated
Revenues from sales and services
- By operating segment: % % % %
. Italian Exhibitions 35,866 64.8 34,017 56.9 184,589 68.7 146,971 66.5
. Foreign Exhibitions 1,746 3.1 3,778 6.3 5,743 2.1 8,975 4.2
. Stand-fitting Services 7,943 14.3 7,249 12.1 43,159 16.1 28,735 13.0
. Media 2,591 4.7 2,395 4.0 9,337 3.5 8,936 4.0
. Congresses 7,285 13.1 12,357 20.7 25,694 9.6 27,248 12.3
Total revenues gross of adjustments for inter-segment transactions 55,431 100.0 59,796 100.0 268,522 100.0 220,865 100.0
. Adjustments for inter-segment transactions (8,583) (7,857) (40,142) (31,330)
Total revenues net of adjustments for inter-segment transactions 46,848 51,939 228,380 189,535
- By geographic area:
. Italy 45,290 96.7 48,162 92.7 223,158 97.7 180,565 95.3
. Foreign countries 1,558 3.3 3,777 7.3 5,222 2.3 8,970 4.7
Total 46,848 100.0 51,939 100.0 228,380 100.0 189,535 100.0
Gross operating result % % % %
- By operating segment: on
revenues
on
revenues
on
revenues
on
revenues
. Italian Exhibitions (9,167) -25.6 (5,851) -17.2 11,013 6.0 (3,240) -2.2
. Foreign Exhibitions (835) -47.8 17 0.4 (1,836) -32.0 (1,200) -13.4
. Stand-fitting Services 261 3.3 629 8.7 5,160 12.0 2,670 9.3
. Media (230) -8.9 (272) -11.4 (20) -0.2 (24) -0.3
. Congresses 425 5.8 3,342 27.0 2,860 11.1 4,917 18.0
. Adjustments for inter-segment transactions 10 3 2 50
Total (9,536) -20.4 (2,132) -4.1 17,179 7.5 3,173 1.7
- By geographic area:
. Italy (8,539) -18.9 (2,091) -4.3 19,435 8.7 4,494 2.5
. Foreign countries (997) -64.0 (41) -1.1 (2,256) -43.2 (1,321) -14.7
Total (9,536) -20.4 (2,132) -4.1 17,179 7.5 3,173 1.7
Net operating result (EBIT) % % % %
- By operating segment: on
revenues
on
revenues
on
revenues
on
revenues
. Italian Exhibitions (10,539) -29.4 (7,273) -21.4 4,682 2.5 (7,402) -5.0
. Foreign Exhibitions (888) -50.9 (198) -5.2 (9,271) -161.4 (1,891) -21.1
. Stand-fitting Services (175) -2.2 335 4.6 4,654 10.8 1,540 5.4
. Media (329) -12.7 (494) -20.6 (249) -2.7 (634) -7.1
. Congresses (282) -3.9 2,419 19.6 807 3.1 2,957 10.9
. Adjustments for inter-segment transactions (4) (25) (66) (16)
Total (12,217) -26.1 (5,236) -10.1 557 0.2 (5,446) -2.9
- By geographic area:
. Italy (11,153) -24.6 (4,952) -10.3 10,315 4.6 (3,351) -1.9
. Foreign countries (1,064) -68.3 (284) -7.5 (9,758) -186.9 (2,095) -23.4
Total (12,217) -26.1 (5,236) -10.1 557 0.2 -5,446 -2.9
Employees
(no. of permanent employees at the end of the period)
- By operating segment: % % % %
. Italian Exhibitions 458 57.5 439 53.5 458 57.5 439 53.5
. Foreign Exhibitions 159 19.9 197 24.0 159 19.9 197 24.0
. Stand-fitting Services 54 6.8 53 6.5 54 6.8 53 6.5
. Media 90 11.3 95 11.5 90 11.3 95 11.5
. Congresses 36 4.5 37 4.5 36 4.5 37 4.5
100.0
Total 797 100.0 821 100.0 797 100.0 821
- By geographic area:
. Italy
. Foreign countries
638
159
80.1
19.9
624
197
76.0
24.0
638
159
80.1
19.9
624
197
76.0
24.0
Total 797 100.0 821 100.0 797 100.0 821 100.0

Revenues from sales and services before elimination of transactions among the five business segments of the Group were Euro 55.431 million, a decrease of Euro 4.365 million compared to the figure of the third quarter 2014.

  • Revenues from Italian Exhibitions totalled Euro 35.866 million in the third quarter 2015, an increase of approximately 5% compared to the figure for the same period of the previous financial year (Euro 34.017 million). The figure generated by the demand for exhibition space in the quarter was in line with that of the previous year but was boosted by revenues from the contract with Expo 2015 for the rent of areas within the exhibition site for vehicle circulation and parking. The revenues for the first nine months of the financial year mainly reflected the more positive exhibition calendar, which, in the current financial year, included the directly organised biennial exhibition Tuttofood and the biennial hosted exhibition Made Expo, as well as the triennial exhibitions Ipack-Ima and Plast. The increase was, in part, eroded by the absence of the important biennial exhibition Mostra Convegno Expocomfort.

  • Revenues from Foreign Exhibitions totalled Euro 1.746 million in the quarter under review, a decrease of approximately 54% compared to the figure for the same quarter of the preceding financial year (Euro 3.778 million). The fall in revenues mainly reflected the different exhibition calendar in Brazil and the absence of the biennial exhibition Fesqua that falls in even-numbered years. There was a year-on-year decline in the figure for the first nine months due to the decrease in the third quarter and to the drop in demand for exhibition space in Brazil as a result of the slowdown in the Brazilian economy, in particular at Exposec and Reatech, as well as a decline in the South African subsidiary's results because of a weaker performance of both editions of the Good Food & Wine Show held in Cape Town and in Johannesburg.

  • Revenues from Stand-fitting Services were Euro 7.943 million, approximately 10% higher than the figure for the same period of 2014 (Euro 7.249 million). The increase was mainly due to higher volumes of stand-fitting services provided to other Group companies for the activities linked to Expo 2015 whilst revenues from exhibition stand-fitting services were in line with those for the third quarter of the previous financial year. The previously mentioned higher volumes in the quarter under review also positively affected the figure for the first nine months of the year, as did the more favourable exhibition calendar, which included the biennial exhibitions Tuttofood and Made Expo and the triennial exhibitions Ipack-Ima and Plast. However, it was negatively affected by lower stand-fitting volumes from the absence of the biennial exhibition Mostra Convegno Expocomfort that falls in even-numbered years.
  • Revenues in the Media segment totalled Euro 2.591 million in the quarter, an increase of 8% compared to the figure in the third quarter 2014 (Euro 2.395 million). The improvement in both the quarter under review and in the first nine months was due to higher revenues in the digital sector and to LED wall and online portal advertising.
  • Revenues from Congresses totalled Euro 7.285 million in the quarter compared to Euro 12.357 million in the same quarter of 2014. The decrease reflected the absence of the revenues of the third quarter 2014 generated by the use of the MiCo Congress Centre for meetings held during the Italian presidency of the European Union. In the figure for the first nine months of 2015 this was, in part, compensated by the revenues for the management of the Expo 2015 Congress Centre and Auditorium while the revenue figure for normal congress activity was almost unchanged year-on-year.

The Group Gross operating loss in the third quarter 2015 was Euro 9.536 million, a decrease compared to the figure for the third quarter 2014 (a loss of Euro 2.132 million). The breakdown was as follows:

  • Italian Exhibitions had a gross operating loss of Euro 9.167 million in the third quarter 2015 compared to a loss of Euro 5.851 million in the same quarter of 2014. The increased loss was mainly attributable to higher personnel expenses in the Parent Company for the increase in the variable component of remuneration and to some redundancy payments in the quarter, as well as higher rental charges for the fieramilano exhibition site resulting from the variable payment agreed for 2015 that is dependent on a certain level of revenues being reached.

The gross operating profit for the first nine months was Euro 11.013 million, an increase of Euro 14.253 million compared to the same period of the preceding financial year. This increase mainly reflected the aforementioned trend in exhibition space occupied in the period under review and the absence of the extraordinary costs for the relaunch and internationalisation of HOMI that were present in the first nine months figures in 2014. This positive effect was in part offset by the increase in personnel expenses in the Parent Company for the indemnity paid to the previous Chief Executive Officer when his mandate was not renewed, higher expenses for the variable component of personnel expenses, and redundancy payments in the period.

  • Foreign exhibitions generated a gross operating loss of Euro 0.835 million compared to a Euro 0.017 million gross operating profit in the same period of 2014. The deterioration reflected the aforementioned trend in exhibition space occupied and was aggravated by higher personnel expenses for redundancy payments that were part of the reorganisation of personnel in the Brazilian subsidiary Cipa. The fall in the figure for the first nine months reflected the trend in revenues.
  • Stand-fitting services had a gross operating profit of Euro 0.261 million compared to Euro 0.629 million in the same quarter of 2014. The decrease mainly reflected greater volumes of lower margin stand-fitting services which, on similar revenues, more than offset the positive effect from the contracts with Expo 2015. The year-on-year increase in the gross operating profit in the first nine months of the years reflected the trend in revenues described above.
  • Media had a gross operating loss of Euro 0.230 million, which was an improvement on the loss of Euro 0.272 million in the third quarter 2014. The increase in the figures for both the third quarter and for the first nine months reflected the increase in revenues but was negatively affected by costs for the start-up of new digital services.
  • Congresses had a gross operating profit of Euro 0.425 million that compared with Euro 3.342 million in the third quarter 2014. The decrease in the gross operating profit in the quarter and for the first nine months of the current financial year reflected the aforementioned trend in revenues.

The Net operating loss of the five operating segments totalled Euro 12.217 million in the third quarter compared to a net operating loss of Euro 5.236 million for the same quarter of 2014. The figure reflected the respective gross operating results of the segments. The figure for the first nine months also reflected the trend in the respective gross operating results of the segments but also the adjustment to the fair value taken in the first half results for goodwill in the Brazilian subsidiary, for goodwill and for the trademarks of the South African subsidiary, and for the trademark Transpotec & Logitec in the Parent Company.

The breakdown by geographic area in the third quarter shows revenues from foreign activities of Euro 1.558 million, a decrease of Euro 2.219 million compared to the same period of the previous financial year. The decrease was mainly attributable to the different exhibition calendar in Brazil and the absence of the biennial exhibition Fesqua that falls in even-numbered years. The gross operating loss was Euro 0.997 million, a deterioration compared to the gross operating loss of Euro 0.956 million in the third quarter 2014. The figure suffered from the trend in revenues and also from the costs for the reorganisation of the personnel in the Brazilian subsidiary Cipa. The net operating loss was Euro 1.064 million compared to a net operating loss of Euro 0.284 million in third quarter 2014.

During the quarter under review, nine exhibitions and seven congresses with related exhibition space were held in the two sites of fieramilano and fieramilanocity. Net exhibition space occupied totalled 212,015 square metres compared to 206,775 square metres in the same period of the previous financial year. The number of exhibitors was unchanged.

Exhibitions directly organised by the Group in Italy and abroad occupied total net exhibition space of 164,205 square metres, which equated to 53% of the total exhibition space occupied.

Details of exhibitions held in Italy are given in the table on the following page.

Italian exhibition portfolio
Net sq. metres of exhibition space Number of exhibitors
Annual Exhibitions: Quarter
at 30/09/15
Quarter
at 30/09/14
Quarter
at 30/09/13
Quarter
at 30/09/15
Quarter
at 30/09/14
Quarter
at 30/09/13
Directly organised
- HOMI II semester 63,845 57,840 59,860 1,265 1,055 1,185
- Milano Pret-à-Porter (Autumn) 2,570 2,605 2,165 120 150 110
Total annual exhibitions directly organised 66,415 60,445 62,025 1,385 1,205 1,295
Hosted
- LineaPelle II semester 43,800 41,665 - 1,170 1,125 -
- Milano Unica (Autumn) 19,205 18,915 19,810 410 420 435
- Mipel (September) 8,390 10,640 12,820 235 290 365
- Prima MU * 2,380 - - 55 - -
- Super (Autumn) 1,050 1,660 - 200 -
- The Micam (Autumn) 64,350 68,080 68,100 1,380 1,480 1,495
- Nuce (ex Life-Med) a) a) 2,000 a) a) 70
Total annual exhibitions hosted 139,175 140,960 102,730 3,250 3,515 2,365
Total annual Exhibitions 205,590 201,405 164,755 4,635 4,720 3,660
Biennial Exhibitions:
Directly organised
- Chem Med 1,130 - 2,470 50 - 80
Total biennial exhibitions hosted 1,130 - 2,470 50 - 80
Total biennial exhibitions 1,130 - 2,470 50 - 80
TOTAL EXHIBITIONS 206,720 201,405 167,225 4,685 4,720 3,740
- Congresses with related exhibition space 5,295 5,370 4,840 415 380 305
TOTAL 212,015 206,775 172,065 5,100 5,100 4,045

* First edition of this exhibition

a) The exhibition did not take place

During the third quarter 2015, eight exhibitions were held in exhibition sites abroad and the net exhibition space occupied totalled 97,790 square metres (in the third quarter 2014 the figure was 109,450 square metres). The number of exhibitors was 1,340 (1,005 in third quarter 2014).

Details of the exhibitions organised abroad are given in the following table.

Foreign Exhibition portfolio
Net sq. metres of exhibition space Number of exhibitors
Quarter
at 30/09/15
Quarter
at 30/09/14
Quarter
at 30/09/13
Quarter
at 30/09/15
Quarter
at 30/09/14
Quarter
at 30/09/13
Annual Exhibitions:
Exhibitions directly organised in China
- Food Hospitality World Guangzhou 3,015 c) 3,030 390 c) 320
- Industrial Automation Shenzhen 8,500 c) - 400 c) -
- Motor Show Chengdu 76,500 76,665 70,165 60 95 90
- The Micam Shanghai 2° semester a) 2,600 - a) 125 -
Total Exhibitions directly organised in China 88,015 79,265 73,195 850 220 410
Exhibitions directly organised in Turkey
- Art International Istanbul d) 3,830 2,255 d) 75 60
- Promoturk d) 4,115 - d) 70 -
Total Exhibitions directly organised in Turkey - 7,945 2,255 - 145 60
Exhibitions directly organised in South Africa
- Good Food & Wine Show Gauteng 3,360 3,300 4,185 210 180 260
- Good Food & Wine Show Durban b) - 2,690 b) - 155
Total Exhibitions directly organised in South Africa 3,360 3,300 6,875 210 180 415
Exhibitions directly organised in Thailand
- The China Products Show Bangkok
3,000 1,500 145 - 80
Total Exhibitions directly organised in Thailand 3,000 c)
-
1,500 145 - 80
Exhibitions directly organised in Brazil
- Enersolar 1,505 995 2,055 50 35 105
- The China Products Show Brasil 400 c) - 40 c) -
- Fippa-pet show a) 3,150 c) a) 110 c)
- Gospel a) 950 c) a) 30 c)
Total Exhibitions directly organised in Brazil 1,905 5,095 2,055 90 175 105
Total Annual Exhibitions 96,280 95,605 85,880 1,295 720 1,070
Biennial Exhibitions:
Exhibitions directly organised in Brazil
- Braseg 1,510 - 2,745 45 - 95
- Fesqua-Vitech - 13,845 - - 285 -
- Saie a) - 1,280 a) - 45
Total Exhibitions directly organised in Brazil 1,510 13,845 4,025 45 285 140
Total Biennial Exhibitions 1,510 13,845 4,025 45 285 140
TOTAL EXHIBITIONS 97,790 109,450 89,905 1,340 1,005 1,210
a) The exhibition did not take place

b) The exhibition will be held in subsequent quarters

c) The exhibition in previous years was held in different quarters

d) With the divestment of the subsidiary Interteks on 27 July 2015, the Group has exited the Turkish market

Group personnel

At 30 September 2015, Group employees totalled 797 and the breakdown compared to 30 June 2015 was as follows:

31/12/14 Permanent employees at the end of period
(units)
30/06/15
Total Italy Foreign
countries
Fully consolidated companies: Total 30/09/15
Foreign
countries
Italy
Total Italy Foreign
countries
46 39 7 Executives 44 40 4 45 38 7
698 583 115 Managers and white collar workers (including journalists) 694 598 96 699 579 120
744 622 122 Total 738
638
100
744 617 127
2 - 2 Equity-accounted companies (a):
Executives
2 - 2 2 - 2
61 - 61 White collar workers 57 - 57 58 - 58
63 - 63 Total 59 - 59 60 - 60
807 622 185 TOTAL
(a) the indicated data corresponds to the pro-quota of total employees
797 638 159 804 617 187

Compared to the figure at 30 June 2015, there was a net decrease of seven permanent employees. The decrease mainly reflects the combined effect of those that became part of the Group following the acquisition of Ipack-Ima SpA and those leaving following the reorganisation of the Brazilian subsidiary Cipa and the divestment of the Turkish company Interteks.

Significant events after the end of the quarter

On 16 October 2015, the newly acquired company Ipack-Ima SpA and Proma Pack Srl, a company belonging to UCIMA, the Association of Italian Manufacturers of Automatic Packing and Packaging Machinery, set up Ipack-Ima Srl. The latter is held 49% by Ipack-Ima SpA and 51% by Proma Pack Srl. As soon as the legal requirements have been fulfilled, Fiera Milano will confer its Ipack-Ima business division and UCIMA its Food Pack division to the new company. This partnership will result in the largest exhibition for processing and packaging technology in Italy.

Business outlook and evaluation of the business as a going concern

The results of the third quarter 2015 were in line with expectations. Current forecasts for the final part of the year are for a continuation in Italy of the positive trend of the first nine months mainly because of the important exhibitions that are in the calendar (these include the proprietary exhibition HOST and the multi-annual exhibition EMO). The forecasts for full-year 2015 point to consolidated revenues in excess of Euro 320 million and a gross operating profit of over Euro 28 million.

Although the third quarter Parent Company gross operating profit was in line with expectations, current estimates, which are reflected in the update of the provisional figures for full-year 2015, indicate that the adjustments made to the fair value of some of the foreign cash-generating units in the Consolidated Half-year Financial Statements as a result of the circumstances described above could mean a fair value adjustment to the same investments in the Parent Company accounts. This could mean that the target of restoring the equity of the Parent Company to above the two-third threshold required under Article 2446 of the Italian Civil Code will not be reached despite a positive equity position.

The share capital increase approved by the Extraordinary Shareholders' Meeting on 31 July 2015 will provide further financial support and ensure that the target of restoring the equity of the Parent Company to above the two-third threshold required under Article 2446 of the Italian Civil Code will be reached. At the same time, it will also strengthen the capital position and raise resources for the Group development plan.

However, the positive outcome of the share capital increase is dependent on shareholders subscribing and paying for the new shares following receipt of the necessary authorisations under enacted law, a process that has already commenced. On 20 July 2015, Fondazione Fiera Milano, the controlling shareholder of Fiera Milano with a shareholding of 62.062%, gave an binding agreement to exercise all its rights to subscribe and pay for its quota of the new shares. At the Extraordinary Shareholders' Meeting on 31 July 2015 that approved the share capital increase, Fondazione Fiera Milano formally stated its intention to pay in cash for its quota of the share capital increase and not to offset the amount by using the debits in the current account held by Fiera Milano with Fondazione Fiera Milano.

On the basis of the budget financial forecasts described above, the expected trend in working capital, the financial and capital position of the company, as well as the undertaking given by the controlling shareholder Fondazione Fiera Milano to subscribe to its quota of the share capital increase, the Third Quarter Financial Statements have been prepared on the principle that the business is a going concern.

Accounting criteria

The 2015 Third Quarter Consolidated Interim Management Report of the Fiera Milano Group has been prepared in accordance with Article 154-ter of Legislative Decree 58/1998 and in accordance with the Listing Rules issued by Consob ruling no. 11971 of 14 May 1999 and subsequent amendments and integrations.

___________________________________________________________________________

The financial, economic and equity data have been prepared in compliance with the disclosure and valuation requirements of the International Accounting Standards IAS/IFRS, issued by the International Accounting Standards Board (IASB) and endorsed by the European Union.

The measurement and recognition criteria used to prepare the Financial Statements for the Third Quarter 2015 are the same as those used for the Consolidated Financial Statements for the financial year at 31 December 2014, with the addition of the accounting standards endorsed by the European Union and applicable from 1 January 2015, to which reference should be made.

Following application of IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations, as a result of the divestment of the Turkish subsidiary Interteks on 27 July 2015 the figures in the income statement at 30 September 2014 and those for the full-year 2014 have been restated. Under IFRS 5 the results of the company, fair value adjustments to goodwill and to other assets are presented separately on the face of the income statement under Profit/(loss) from discontinued operations.

The 2015 Third Quarter Consolidated Financial Statements have been prepared on the basis of the accounting situation at 30 September 2015 as approved by the Boards of Directors of the companies included in the area of consolidation and prepared by Group companies within the area of consolidation. As regards comparable data, it should be noted that in preparing the Consolidated Interim Management Report at 30 September 2015 the tax charge has not been calculated, as permitted by the relevant Consob Rules.

It should also be noted that the methodologies used for estimates in the preparation of the Consolidated Interim Management Report at 30 September 2015 are substantially the same as those used to prepare the Annual Consolidated Financial Statements.

The list of companies included in the area of consolidation at 30 September 2015 is given in Attachment 1.

The present 2015 Third Quarter Consolidated Interim Management Report has not been subject to legal audit.

Financial Statements

Full year
at 31/12/14 restated
Consolidated Income Statement
(Amounts in €'000)
3rd Quarter
at 30/09/15
3rd Quarter
at 30/09/14 restated
9 months
at 30/09/15
9 months
at 30/09/14 restated
% % % % %
242,711
100
Revenues from sales and services 46,848 100 51,939
100
228,380
100
189,535
100
2,440
1.0
Cost of materials 472 1.0 599
1.2
4,404
1.9
2,085
1.1
135,388
55.8
Cost of services 27,402 58.5 29,096
56.0
114,894
50.3
101,801
53.7
57,781
23.8
Costs for use of third party assets 15,383 32.8 12,710
24.5
46,633
20.4
44,727
23.6
48,634
20.0
Personnel expenses 12,991 27.7 11,040
21.3
43,754
19.2
35,958
19.0
6,604
2.7
Other operating expenses 1,565 3.3 1,628
3.1
5,551
2.4
5,370
2.8
250,847
103.4
Total operating costs 57,813 123.4 55,073
106.0
215,236
94.2
189,941
100.2
3,529
1.5
Other income 766 1.6 938
1.8
2,200
1.0
2,552
1.3
1,448
0.6
Results of equity-accounted companies 663 1.4 64
0.1
1,835
0.8
1,027
0.5
(3,159)
-1.3
Gross operating result (9,536) -20.4 (2,132)
-4.1
17,179
7.5
3,173
1.7
13,328
5.5
Depreciation and amortisation 3,138 6.7 3,417
6.6
9,610
4.2
9,867
5.2
(1,779)
-0.7
Allowance for doubtful accounts and other provisions (uses) (174) -0.4 (313)
-0.6
(702)
-0.3
(1,254)
-0.7
3,637
1.5
Adjustments to asset values (283) -0.6 -
-
7,714
3.4
6
0.0
(18,345)
-7.6
Net operating result (EBIT) (12,217) -26.1 (5,236)
-10.1
557
0.2
(5,446)
-2.9
(4,871)
-2.0
Financial income/(expenses) (1,851) -4.0 (903)
-1.7
(4,001)
-1.8
(3,513)
-1.9
(23,216)
-9.6
Profit/(loss) before income tax from continuing operations (14,068) -30.0 (6,139)
-11.8
(3,444)
-1.5
(8,959)
-4.7
(476)
-0.2
Profit/(loss) before income tax from discontinued operations 9 0.0 (163)
-0.3
(1,988)
-0.9
(553)
-0.3
(23,692)
-9.8
Profit/(loss) before income tax: (14,059) -30.0 (6,302)
-12.1
(5,432)
-2.4
(9,512)
-5.0
(23,456)
-9.7
- attributable to the shareholders of the controlling entity (14,080) -30.1 (6,212)
-12.0
(4,654)
-2.0
(8,866)
-4.7
(236)
-0.1
- attributable to non-controlling interests 21 0.0 (90)
-0.2
(778)
-0.3
(646)
-0.3
(8,506)
-3.5
Cash flow before income tax for the Group and non-controlling interests (11,378) -24.3 (3,198)
-6.2
11,190
4.9
(893)
-0.5
Following the application of IFRS 5, the divestment of the subsidiary Interteks on 27 July 2015 required some of the figures in the consolidated financial statements at 31 December 2014 and in the interim consolidated financial statements at 30
September 2014 to be restated for comparative purposes.
Full year
at 31/12/14
Reclassified Consolidated Statement of Financial Position
(Amounts in €'000)
3rd Quarter
at 30/09/15
1st Half
at 30/06/15
Change
109,474 Goodwill and intangible assets with an indefinite useful life 103,679 102,505 1,174
41,584 Intangible assets with a finite useful life 31,564 35,030 (3,466)
18,438 Tangible fixed assets 16,073 16,968 (895)
35,234 Other non-current assets 36,431 32,422 4,009
204,730 A Non-current assets 187,747 186,925 822
5,028 Inventory 3,500 3,396 104
50,604 Trade and other receivables 83,407 99,681 (16,274)
55,632 B Current assets 86,907 103,077 (16,170)
36,160 Trade payables 46,884 53,925 (7,041)
39,641 Payments received on account 62,687 60,477 2,210
2,091 Tax liabilities 921 3,727 (2,806)
21,875 Provisions for risks and charges and other current liabilities 49,812 37,439 12,373
99,767 C Current liabilities 160,304 155,568 4,736
(44,135) D Net working capital (B - C) (73,397) (52,491) (20,906)
160,595 E Gross capital employed (A + D) 114,350 134,434 (20,084)
10,286 Employee benefit provisions 10,598 9,997 601
8,954 Provisions for risks and charges and other non-current liabilities 7,588 8,226 (638)
19,240 F Non-current liabilities 18,186 18,223 (37)
141,355 G NET CAPITAL EMPLOYED continuing operations (E - F) 96,164 116,211 (20,047)
- H NET CAPITAL EMPLOYED discontinued operations 310 784 (474)
141,355 TOTAL NET CAPITAL EMPLOYED (G + H) 96,474 116,995 (20,521)
covered by:
17,034 Equity attributable to the Group 13,378 * 22,288 (8,910)
2,654 Equity attributable to non-controlling interests 349 * 340 9
19,688 I Total equity 13,727 22,628 (8,901)
(12,276) Cash & cash equivalents (19,893) (17,190) (2,703)
105,044 Current financial (assets)/liabilities 84,515 91,638 (7,123)
28,899 Non-current financial (assets)/liabilities 18,125 19,135 (1,010)
121,667 Net financial position (continuing operations) 82,747 93,583 (10,836)
- Net financial position (discontinued operations) - 784 (784)
121,667 L Net financial position (TOTAL) 82,747 94,367 (11,620)
141,355 EQUITY AND NET FINANCIAL POSITION (I + L) 96,474 116,995 (20,521)
* includes pre-tax result for the period

Comments on the capital and financial position

Non-current assets totalled Euro 187.747 million at 30 September 2015, compared to Euro 186.925 million at 30 June 2015. The Euro 0.822 million increase was due to the net effect of investments of Euro 2.248 million, depreciation and amortisation of Euro 3.138 million, a negative foreign exchange translation effect of Euro 2.236 million, changes in equity accounted investments of Euro 0.663 million, an increase in tax assets of Euro 3.395 million for deferred tax assets, and a negative figure for other movements totalling Euro 0.110 million.

Net working capital moved from a negative figure of Euro 52.491 million at 30 June 2015 to a negative figure of Euro 73.397 million at 30 September 2015.

The deterioration of Euro 20.906 million was due to the following:

  • (a) a Euro 16.170 million decrease in current assets that was mainly due to a Euro 16.274 million fall in Trade and other receivables. This decrease in receivables was due to lower levels of activity in the summer months and to the cash-in for receivables from exhibition organisers for events held in the quarter under review or to be held in coming months. This was, in part, offset by the increase in Parent Company prepaid expenses for the fourth quarter rental charges for the two exhibition sites, which were paid in advance in July.
  • (b) a Euro 4.736 million increase in current liabilities from the net effect of:
  • a reduction in Trade payables of Euro 7.041 million that reflected the lower business activity in the summer period;
  • an increase in pre-payments of Euro 2.210 million which was the net of increases for pre-payments invoiced to clients for exhibitions to be held in future quarters (in particular Host, ITMA, Simei, Eicma Moto, Salone del Mobile, and Emo) and a decrease in pre-payments for exhibitions held in the third quarter 2015 (in particular for HOMI II semester, the autumn edition of Micam and the biannual exhibition Lineapelle II semester);
  • a Euro 2.806 million decrease in Tax payables as the figure shown in the Financial Statements at 30 June 2015 included tax provisions that are not shown in the current financial statements as these are prepared gross of tax;
  • a Euro 12.373 million increase in Provisions for risks and charges and other current liabilities due to higher payables to exhibition organisers (in particular, for EMO).

At 30 September 2015, non-current liabilities totalled Euro 18.186 million compared to Euro 18.223 million at 30 June 2015.

Group equity at 30 September 2015 was Euro 13.378 million compared to Euro 22.288 million at 30 June 2015, a decrease of Euro 8.910 million that reflected the effect of the following:

  • a Euro 14.080 million decrease in the pre-tax profit for the period;
  • Euro 5.488 million for the inclusion of tax payables in the Financial Statements at 30 June 2015 that are not included in the present Financial Statements as these are prepared gross of tax;
  • a Euro 0.078 million increase for the remeasurement of defined benefit plans;
  • a Euro 0.396 million decrease in the translation reserve.

Equity attributable to non-controlling interests was Euro 0.349 million at 30 September 2015 compared to Euro 0.340 million at 30 June 2015. The Euro 0.009 million increase reflects:

  • a Euro 0.021 million increase in the result for the period;
  • a Euro 0.012 decrease in the translation reserve.

Information on the change in financial assets and liabilities is given in the section on the financial position.

Declaration of the Manager responsible for preparing the Company's financial statements

The Manager responsible for preparing the Company's financial statements, Flaminio Oggioni, in accordance with paragraph 2 of Article 154-bis of the Consolidated Finance Act, herewith declares that the accounting information in the present Interim Management Report is consistent with the Company's official documents, books and accounting records.

Shareholding %
Shareholding of Group companies
Indirectly
Directly
held
held by
through
Share capital
Group
Fiera
other Group
Main activity
(000) ()
total
Milano
companies
%
Company name and registered office
A) List of companies included in the area of consolidation
Parent Company
Fiera Milano SpA
Organisation and hosting
Milano, p.le Carlo Magno 1
of exhibitions in Italy
42,147
Fully consolidated companies
Fiera Milano Media SpA
Milan, p.le Carlo Magno 1
Media services
2,803
100
100
100 Fiera Milano SpA
Fiera Milano Congressi SpA
Management of
Milan, p.le Carlo Magno 1
congresses
2,000
100
100
100 Fiera Milano SpA
MiCo DMC S.r.l.
Management of
Milan, via G.Ripamonti 129
congresses
51 10
51
51 Fiera Milano Congressi SpA
Nolostand SpA
Milan, p.le Carlo Magno 1
Stand fitting services
7,500
100
100
100 Fiera Milano SpA
Ipack-Ima SpA
Organisation of
Milan, corso Sempione 4
exhibitions in Italy
100 200
100
100 Fiera Milano SpA
Eurofairs International Consultoria e Participações Ltda
99.98
Fiera Milano SpA
São Paulo Brasil,
Organisation of
na Avenida Angélica, nº 2350, Sala B, Consolação,
exhibitions abroad
R \$ 36,014
100
99.98
0.02
0.02 Nolostand SpA
CIPA Fiera Milano Publicações e Eventos Ltda
Organisation of
Eurofairs International
São Paulo Brasil, Av. Angelica
exhibitions abroad
R \$ 705
100
100
100
Fiera Milano India Pvt Ltd
Organisation of
New Delhi, Barakhamba Road, Connaught Place
exhibitions abroad
INR 20,000
99.99
99.99
99.99 Fiera Milano SpA
Limited Liability Company "Fiera Milano"
Organisation of
Moscow, 24 A/1 ul. B. Cherkizovskaya
exhibitions abroad
RUB 10,000
100
100
100 Fiera Milano SpA
Fiera Milano Exhibitions Africa Pty Ltd
Organisation of
exhibitions abroad
Cape Town, The Terraces, Steenberg Office Park, Tokai
ZAR 200
100
100
100 Fiera Milano SpA
Worldex (China) Exhibition & Promotion Ltd
Organisation of
Guangzhou, 538 Dezheng Bei Road, Yuexiu District
exhibitions abroad
CNY 6,000
75
75
75 Fiera Milano SpA
Haikou Worldex Milan Exhibition Co. Ltd
Organisation of
exhibitions abroad
Haikou, 12 Lantian Road West
CNY 200
74.25
99
99 Worldex Ltd
B) List of jointly controlled companies equity-accounted
Hannover Milano Global Germany GmbH
Organisation of
Hannover Germany, Messegelaende
exhibitions abroad
25
49
49
49 Fiera Milano SpA
Hannover Milano Fairs Shanghai Co. Ltd
Organisation of
Hannover Milano Global
Shanghai China, Pudong Office Tower
exhibitions abroad
USD 500
49
100
100
Germany GmbH
Hannover Milano Fairs China Ltd
Organisation of
Hannover Milano Global
Hong Kong China, Golden Gate Building
exhibitions abroad
HKD 10
49
100
100
Germany GmbH
Hannover Milano Fairs India Pvt Ltd
Organisation of
Hannover Milano Global
East Mumbai, Andheri
exhibitions abroad
INR 274,640
48.99
99.99
99.99
Germany GmbH
Global Fairs & Media Private Ltd
Organisation of
Hannover Milano Fairs India
New Delhi, Bahadur Shah Zafar Marg 9-10
exhibitions abroad
INR 207,523
24.5
50
50
Pvt Ltd
Milan International Exhibitions Srl under liquidation
Rho, S.S.Sempione 28
Other
120
20
20
20
Fiera Milano SpA
C) List of companies accounted at cost
Shareholding %
Shareholding of Group companies
Indirectly
Directly
held
held by
through
Share capital
Group
Fiera
other Group
(000) (
)
total
Milano
companies
%
Company name and registered office
Esperia SpA
Rose (Cosenza)
Other
1,403
2
2
2 Fiera Milano Media SpA
(*) Euro or other currencies as specifically indicated
Attachment 1
List of companies included in the area of consolidation and other equity investments at 30 September 2015
Consultoria e Participações Ltda

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