Investor Presentation • Oct 23, 2018
Investor Presentation
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London, October 23rd 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
Group overview
Total gross exhibition capacity
401,000 sqm of which 345,000 sqm fieramilano site 56,000 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
165 congresses 345,000 participants
Number of training events 114
Number of technical publications 10 (580,000 copies)
Number of publishing portals
10
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
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)
Figures refer to net exhibition space rented out in Italy (average 2015-2017)
Food - Catering
Building - plant design - energy
Vehicles and related equipment
Furniture and furnishing
Homeware and gifts
Tourism - Sport - Leisure
3.4%
7.1%
8.0%
12.4%
6.8%
8.2%
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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
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)
Operational Excellence
Maximum accessibility for suppliers, exhibitors & visitors
Enhanced Customer Experience
Shortest time to customer Seamless customer experience
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Yearly Net Profit expected positive throughout period of strategic plan
Exhib. performance 2017 vs previous edition Sicurezza +39% sqm (+47% visitors) Host +3% sqm (+31% visitors) In H1 2018 successful first edition of The Innovation Alliance (150,000 visitors of which 27% international) Return to the STAR segment on Apr. 30th 2018 FMG Stock performance +87%1 vs. end 2017
Full-year EBITDA: -1% to +6% ('16 vs. '17) H1 2018 EBITDA: 46.1€m (vs. 11.9€m 2017) Recurring costs addressed +3pp profitability through efficiencies
Upgrade of 2018 EBITDA target from 17€m to 26€m
Restructuring plan launched in Brazil Recovery in profitability in South Africa Strengthening of the Chinese portfolio through the acquisition of new exhibitions
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) | 1H18 | 1H17 restated* |
|---|---|---|---|
| 256.3 | Revenues | 157.7 | 133.9 |
| 136.5 | Cost of materials and services | 66.2 | 71.4 |
| 49.9 | Costs for use of 3rd-party assets | 25.5 | 25.3 |
| 48.9 | Personnel expenses | 23.2 | 23.5 |
| 5.4 | Other operating expenses | 2.4 | 2.7 |
| 240.7 | Total operating costs | 117.2 | 122.9 |
| 2.6 | Other income | 1.9 | 1.3 |
| 2.6 | Results of equity-accounted companies | 4.3 | 1.3 |
| 5.8 | Allowance for doubtful accounts and other provisions | 0.5 | 1.7 |
| 15.1 | EBITDA | 46.1 | 11.9 |
| 6.8 | Depreciation and amortisation | 3.0 | 3.4 |
| 2.9 | Adjustments to asset values | 0.0 | 0.0 |
| 5.4 | EBIT | 43.1 | 8.4 |
| (0.8) | Financial income/(expenses) | (0.0) | (0.7) |
| 4.6 | Profit/loss before income tax | 43.1 | 7.7 |
| 2.9 | Income tax | 11.4 | 2.1 |
| 1.7 | Profit/loss | 31.7 | 5.6 |
| 1.6 | of which attributable to Shareholders of the controlling entity | 31.8 | 5.9 |
* Starting with the Consolidated Financial Statements at 31 December 2017, operating profitability is calculated as EBITDA; therefore the figures at 30 June 2017, 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) | 30/06/18 | 31/12/17 |
|---|---|---|
| Non-current assets | 149.7 | 151.5 |
| Net working capital | (67.9) | (74.3) |
| Gross capital employed | 81.9 | 77.3 |
| Non-current liabilities | 13.3 | 13.4 |
| Total net capital employed | 68.5 | 63.8 |
| Equity | 94.8 | 63.0 |
| Net financial position | (26.3) | 0.8 |
| Equity and net financial position | 68.5 | 63.8 |
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