Highlights and Achievements

Transcription

1 Fiera Milano Group 1 st Half 2011 Consolidated Results Conference Call 29 July 2011

2 Contents Highlights and Achievements Financial Results Business Outlook 2

3 Highlights Fiera Milano 1st half 2011 results in line with targets of the Industrial Plan In Italy exhibition space at 722,875 net square meters, compared to 922,490 in 1H10, mainly reflecting the absence of MostraConvegno Expocomfort and the postponement of Made Expo (for a total of ca. 214,000 net sq meters) but with a strong increase in exhibition space abroad (+71%) Revenues of million (vs million in 1H10) Significant reduction in operating costs (-6.2%) with greater cost efficiencies in the management of the exhibition site and personnel expenses Gross operating result of 20.0 million (vs 21.6 million in 1H10) Improvement in net operating result to 15.3 million from 14.9 million in 1H10 Net Profit of 7.7 million (vs 8.0 million in 1H10) Reduction in net financial debt to 70.2 million at 30 June 2011 ( 84.2 million at 31 December 2010) 741 employees at 30 June 2011, compared to 696 at 31 December 2010 following acquisition of the Brazilian Company CIPA FM 3 Business Outlook

4 Achievements Results consistent with the strategic priorities of the Industrial Plan Exhibitions Internationalisation Completion of the merger of the subsidiary Rassegne into the parent company to ensure further business growth and greater operating efficiency Increased profitability of Macef (lifestyle sector) and Tuttofood (food sector) Successful concerts to increase the rotation rate of the exhibition site in summer months On 27 January, acquisition of the Brazilian exhibition organiser CIPA FM completed Incorporation of Fiera Milano India Private Ltd with launch of Motor Match scheduled for October 2011 Incorporation of OOO Russia; launch of Macef Russia in partnership with a local partner in 2012 Congresses Successful opening of Europe s newest and largest congress centre, MiCo, with two big international congresses 4 Highlights and Achievements

5 Achievements Media On 24 June the Board of Directors approved the merger by incorporation of the 100%-owned subsidiaries, Expopage SpA and Business International SpA, into Fiera Milano Editore SpA to provide an integrated offer to the market Personnel In July the Parent Company started an exit procedure for 62 employees. Under the restructuring plan an agreement should be reached with the trade unions or, should an agreement fail to be reached, the redundancies will be carried out in accordance with enacted law Anti crisis Initiatives Ongoing initiatives to increase exhibitor loyalty also with the support of the controlling shareholder, Fondazione Fiera Milano: 6.66 million in first half 2011 ( 7.8 million in 1H10) 5 Highlights and Achievements

6 Contents Highlights and Achievements Financial Results Business Outlook 6

7 New Operating Segments Exhibitions Rent of space and related services to exhibition organisers and direct organisation of exhibitions Services Stand fitting services Congresses Management of conventions and congresses Media A multimedia and multi-channel communications system including printed publications, internet and conferences 7

8 Italian Exhibition Calendar ('000) Net sq. metres of exhibition space N. exhibitors Exhibitions 1H11 1H10 1H11 1H10 Annual exhibitions Directly organised 176, ,125 2,660 2,800 Organised by 3rd parties 390, ,815 6,395 7,560 Total annual exhibitions 566, ,940 9,055 10,360 Biennial exhibitions Directly organised 40,280 11, Organised by 3rd parties 70, , ,505 Total biennial exhibitions 110, ,305 1,740 2,785 Multi-year exhibitions Organised by 3rd parties 12, Total multi-year exhibitions 12, Total exhibitions 689, ,245 11,195 13,145 Congresses with related exhibition area 33,040 11,245 1, Total 722, ,490 12,712 13,810 Postponement of the annual exhibition Made Expo and absence of the biennial exhibition Mostra Convegno Expocomfort New exhibitions: Frameart, Cartexpo, Smap Expo and BtoBio Expo Positive performance of the biennial exhibition Tuttofood 8 Financial Results

9 Foreign Exhibition Calendar ('000) Net sq. metres of exhibition space N. exhibitors Exhibitions 1H11 1H10 1H11 1H10 Annual exhibitions Directly organised in China 65,195 57,265 1,352 1,400 Directly organised in Brazil 24, Total annual exhibitions 89,220 57, ,961 1,400 Biennial exhibitions Directly organised in China 14,505 3, Directly organised in India Directly organised in Brazil Total biennial exhibitions 16,275 3, Multi-year exhibitions Directly organised in China 0 1, Total multi-year exhibitions 0 1, Total 105,495 61,605 2,397 1,613 Higher exhibition space occupied by Chinese exhibitions, in particular the annual exhibition Chinafloor Domotex Shanghai h and the biennial i exhibition WoodMac China Additional contribution from Brazilian exhibitions (main ones: Exposec and Reatech) 9 Financial Results

10 Exhibitions Exhibitions 1H11 1H10 Revenues ( '000) 115, ,169 Gross operating result ( '000) 15,846 17,418 % on revenues 13.7% 13.9% Net operating result ( '000) 14,130 13,708 % on revenues 12.2% 11.0% 1H11 revenues negatively affected by the different Italian exhibition calendar but positively affected by the higher contribution from foreign activities Gross operating margin in line with that of 1H10 in part thanks to a reduction in costs of services and personnel expenses and despite the lower amount for anti-crisis initiatives received from the Controlling shareholder Increase in net operating result due to lower amortisation 10 Gross of adjustments for inter-segment transactions Financial Results

11 Services Services 1H11 1H10 Revenues ( '000) 17,621 17,264 Gross operating result ( '000) 1,317 2,034 % on revenues 7.5% 11.8% Net operating result ( '000) % on revenues 0.4% 5.5% Lower gross operating result reflects a less favourable sales mix 11 Gross of adjustments for inter-segment transactions Financial Results

12 Media Media 1H11 1H10 Revenues ( '000) 10,201 11,762 Gross operating result ( '000) 879 1,863 % on revenues 8.6% 15.8% Net operating result ( '000) (152) 769 % on revenues -1.5% 6.5% Lower results due to lower sales of advertising and on-line services stemming from the different exhibition calendar 12 Gross of adjustments for inter-segment transactions Financial Results

13 Congresses Congresses 1H11 1H10 Revenues ( '000) 14,425 8,847 Gross operating result ( '000) 1, % on revenues 13.7% 3.7% Net operating result ( '000) 1,153 (551) % on revenues 8.0% -6.2% Strong improvement in sales and margins from the new congress centre, MiCo, following its inauguration i in May Gross of adjustments for inter-segment transactions Financial Results

14 Consolidated Income Statement FY10 Income Statement ( '000) 1H11 1H10 248,358 Revenues 139, ,096 20,430 Gross operating result 20,020 21, % Gross operating margin (%) 14.3% 14.6% 2,336 Net operating result (EBIT) 15,272 14, % Net operating margin (%) 10.9% 10.1% 207 Profit before income tax 13,655 13, % Profit before tax margin (%) 9.8% 98% 9.4% 2,074 Profit/(loss) 7,657 8, % Profit/(loss) margin (%) 5.5% 5.4% 2,192 -attributable to equity owners of the parent company 7,630 8, % Profit attributable to equity owners of the parent company margin (%) 5.5% 5.4% (118) -attributable to non-controlling interests 27 (31) 0.0% Profit/(loss) attributable to non-controlling interests margin (%) 0.0% 0.0% 14 Financial Results

15 Consolidated Balance Sheet Balance Sheet ( '000) 30/06/11 31/12/10 Non-current assets 211, ,430 Net working capital (42,494) (27,450) Gross capital employed 169, ,980 Non-current liabilities 27,388 24,448 Total net capital employed 141, ,532 Net equity 71,699 64,305 Net financial position 70,187 84,227 Net equity and net financial position 141, , Financial Results

16 Net Financial Position Net Financial Position ( '000) 30/06/11 31/12/10 Cash (including bank balances) 19,041 22,692 Other cash equivalents - - Securities held for trading - - Cash & cash equivalents 19,041 22,692 Current financial assets 4,029 3,905 Current bank payables 69, ,797 Current portion of non-current debt 5,367 1,322 Other current financial payables - - Current financial debt 75, ,119 Current net financial debt (cash) 52,165 81,522 Non-current bank payables 18,022 2,705 Debt securities on issue - - Other non-current payables - - Non-current net financial debt (cash) 18,022 2,705 Net financial debt (cash) 70,187 84, Decrease in net debt mainly attributable to the strong increase in operating cash flow with lower receivables and higher pre-payments only partially offset by the acquisition of CIPA FM Signature of a five-year financing agreement for up to 20 million to cover investments results in a movement of part of current debt to non-current debt Financial Results

17 Contents Highlights and Achievements Financial Results Business Outlook 17

18 Business Outlook In accordance with the strategic guidelines of the Industrial Plan, the Group will continue the initiatives aimed at strengthening the exhibition portfolio and increasing internationalisation Barring any unforeseen events beyond the control of the Group, the first semester results allow us to confirm the full-year target of gross operating profit of 27 million 18 Business Outlook

19 Forward-Looking Statements Data and information herewith set forth are extracted from Fiera Milano press release related to Half-year Financial Report at 30 June 2011 filed with Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation. This document has been prepared by Fiera Milano SpA solely l for information purposes and for use in presentations ti 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 Flaminio Oggioni 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. 19

20 For further information, please contact: Gianna La Rana Investor Relations Manager Camilla Cusi Investor Relations Fiera Milano SpA Strada Statale del Sempione, Rho (Milano) - ITALY Tel: /