Fiera Milano 1 st Quarter 2008 Financial Results. Conference Call 15 May 2008

Transcription

1 Fiera Milano 1 st Quarter 2008 Financial Results Conference Call 15 May 2008

2 Contents Section 1. Section 2. Major Events after quarter-end Section 3. Outlook for FY2008 Contents 2

3 Section 1

4 1 st Quarter 2008 Financial Highlights 1 st Quarter 2008 featured the typical strongest quarter of the year and in particular: debut of the MADE Expo exhibition (architecture, design and building sector): 107 thousand net sqm the spring edition of Macef: 125 thousand net sqm the presence of the biennial exhibition Mostra Convegno Expocomfort: 161 thousand net sqm 670 thousand net square metres of exhibition space sold (31% directly organised) up 27.8% from 524 net square metres in 1Q07, also because of the different calendar exhibition Consolidated revenues at mn vs mn in 1Q07 (6.3% YoY) Higher sales from space and services to organisers and exhibitors that offset the decrease in the exhibition organisation due to the lower share of exhibitions directly organised Gross Operating Margin (GOM) of 32.6 mn vs mn in 1Q07 Strong improvement mainly thanks to higher sales from space and services and the lump-sum from Reed Net Operating Margin (NOM) of 29.4 mn vs mn in 1Q07 4

5 Main Events in the period In January acquisition of 49% stake of HM Global (for 8.8 mn cash and 2.6 mn in five deferred instalments) and start of Fiera Milano activities in China through a well known company organising successful professional exhibitions (11 in the current year) In January early dissolution of the joint venture with the Reed Group in Fiera Milano International Reed payment of a lump-sum of 7.65 mn to Fiera Milano Fiera Milano acquisition of 47% of Fiera Milano International ( 0.56 mn) Fiera Milano and Foundation approval of contribution to Fiera Milano of the trademarks branch (including mainly MACEF, MIART, TUTTOFOOD and LIFT) owned by the Foundation against a reserved capital increase. Definition of trademarks branch value ranges: for Fiera Milano from 60.7 mn to 64.9 mn for the Foundation from 61.3 mn to 67.7 mn BoD approval of the project for creation of an international congress centre at fieramilanocity, on condition that the investment will be borne by the Foundation Start of the procedure to merge by incorporation the subsidiary SIFA in Fiera Milano International to rationalise the group structure At the end of March the Bureau International des Expositions (BIE) assignment of the 2015 Expo to Milan enhanced international visibility as an important accelerator of the internationalisation processes to increase awareness of Fiera Milano exhibitions abroad Fiera Milano will be able to assure know-how and services before and during the Expo 5

6 Consolidated Profit & Loss FY07 Profit & Loss ( '000) 1Q08 1Q07 302,536 Net Consolidated Revenues 109, ,195 7,131 Gross Operating Margin (GOM) 32,617 17, % GOM margin (%) 29.7% 17.2% (10,985) Net Operating Margin (NOM) 29,391 13, % NOM margin (%) 26.8% 13.1% (10,824) Pre-tax profit/(loss) from continuing operations 29,139 13,518 1,396 Pre-tax profit/(loss) from discontinued operations - 1,396 (9,428) Total pre-tax profit/(loss) 29,139 14, % Pre-tax profit/(loss) margin (%) 26.6% 14.5% (11,630) Group's pre-tax profit/(loss) 27,845 11, % Group's pre-tax profit/(loss) margin (%) 25.4% 11.5% 2,202 Minorities' pre-tax profit/(loss) 1,294 3, % Minorities' pre-tax profit/(loss) margin (%) 1.2% 3.0% 6

7 Venues and Related Services (rounded-off figures) 1Q08 1Q07 Total net sqm rented out 669, ,200 of which directly organised 210, ,900 of which organised by 3rd parties 459, ,300 Revenues ( '000) 65,235 52,974 Gross Operating Margin ( '000) 22,901 9,082 % on revenues 35.1% 17.1% Net Operating Margin ( '000) 21,076 7,469 % on revenues 32.3% 14.1% Increase in sales mainly because of biennial exhibitions (Mostra Convegno Expoconfort) and debut of Made Expo Strong improvement in profitability thanks to higher sales and the lump-sum from the Reed group Gross of adjustments for inter-segment transactions 7

8 Value-Added Services (rounded-off figures) 1Q08 1Q07 Revenues ( '000) 21,537 18,857 Gross Operating Margin ( '000) 2,860 3,074 % on revenues 13.3% 16.3% Net Operating Margin ( '000) 2,125 2,462 % on revenues 9.9% 13.1% Higher sales from the catering, stand fitting and technical publishing sectors also because of the acquisition of the Technology company branch Slight decrease in margins mainly related to the stand fitting sector Gross of adjustments for inter-segment transactions 8

9 Exhibition & Congress Organisation (rounded-off figures) 1Q08 1Q07 Revenues ( '000) 50,223 68,454 Gross Operating Margin ( '000) 6,856 5,608 % on revenues 13.7% 8.2% Net Operating Margin ( '000) 6,165 6,043 % on revenues 12.3% 8.8% Higher sales from congresses offset by the decrease in the exhibition organisation due to the lower share of exhibitions directly organised Improvement in profitability from all companies excluding Fiera Milano Tech due to the absence of the biennial exhibitions LivinLuce and Enermotive Gross of adjustments for inter-segment transactions 9

10 Consolidated Balance Sheet FY07 Balance Sheet ( '000) 1Q08 after taxes before taxes 197,621 Non-current assets 204,167 (85,616) Net working capital (67,845) 112,005 Gross capital employed 136,322 33,746 Non-current liabilities 35,187 78,259 Net capital employed - continuing operations 101,135 - Net capital employed - discontinued operations - 78,259 Total net capital employed 101,135 74,105 Shareholders' equity 101,385 4,154 Net financial position (cash) (*) - continuing operations (250) 4,154 Total Net financial position (cash) (*) (250) 78,259 Equity and Net financial position 101,135 (*) NFP includes short-term cash investments made with premier insurance companies classified as current financial assets 10

11 Consolidated Net Financial Position FY07 Consolidated Net Financial Position ( '000) 1Q08 17,378 Cash 20,742 - Other cash equivalents - - Securities held for trading - 17,378 Cash & cash equivalents 20,742 62,301 Current financial assets (*) 62,990 66,316 Current bank borrowings 63,717 6,673 Current portion of non-current debt 6,207 (1,076) Other current financial liabilities 1,126 71,913 Current financial debt 71,050 (7,766) Current net financial debt (cash) (12,682) 11,916 Non-current bank borrowings 12,430 - Debt securities on issue - 4 Other non-current (receivables)/liabilities 2 11,920 Non-current net financial debt (cash) 12,432 4,154 Net financial debt (cash) of continuing operations (250) 4,154 Total net financial debt (cash) (250) (*) They include short-term cash investments made with premier insurance companies Increase of net financial position due to cash movements for the exhibitions held in the quarter and afterwards (in particular the Salone del Mobile) Outlay for the acquisition of HM Global largely covered by cash-in of the lump-sum 7.65 mn paid by Reed 11

12 Section 2 Major Events after quarter-end

13 Major Events after quarter-end Signature of a contract for the acquisition from the Group E.S. of some well known publications in the hotel-restaurant-catering (ho.re.ca) sector: Mixer, Beverage & Grocery and Night Life, besides the publishing contracts for GBI - Grossisti Bevande Italia and some House Organ of important companies In 2007 the magazines reached sales of about 4.9 mn and EBITDA of over 1.4 mn Publications tied to HOST, in the field of professional hospitality, and TUTTOFOOD, in the agrifood sector, particularly important in view of Expo 2015 "feeding the planet" Price equal to 7.0 million in cash and three deferred instalments on the basis of the Gross Operating Margin in 2008, 2009 and 2010 (multiplied by a coefficient of 0.733) that cannot be less than 1,4 mn, 1.5 mn and 1.6 mn respectively The closing is expected to take place by the first half of July 2008 In April the Salone del Mobile exhibition (International Furniture Show) the world s most important exhibition in the furniture and design sector featured a record edition, with an all-time record in terms of visitors Major Events after quarter-end 13

14 Section 3 Outlook for FY2008

15 Outlook for FY2008 1Q08 results better than expected, good performance of exhibitions held after quarterend and the ongoing acquisition programme enable to consider foreseeable business progress confidently Full confirmation of full-year financial targets, i.e. a Gross Operating Margin of about 28 mn, saving occurrence of any extraordinary events outside the Group s control Outlook for FY

16 Forward-Looking Statements Data and information herewith set forth are extracted from Fiera Milano s report on the first quarter of 2008 filed with Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation. The Manager charged with preparing the Company s financial reports, Bruno Boffo, in compliance with the requirements of paragraph 2 of Article 154/2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), herewith declares that the financial disclosure contained in this document corresponds to documentary evidence, corporate books, and accounting records. 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 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. 16

17 Thank you for your attention 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: / investor.relations@fieramilano.it