News about Holding Messe Duesseldorf GmbH

Date: 22.05.2006

Messe Duesseldorf Group expands its global leadership in selected segments

Messe Duesseldorf Group ended the 2005 financial year significantly ahead of expectations with consolidated sales of some EUR 316 million. The individual financial statements show Messe Duesseldorf GmbH as having generated sales of more than EUR 236 million.

"Overall, the company has performed significantly better than expected in 2005, which has enabled us to further strengthen the group's position. We have also substantially outperformed the domestic and international targets that we set ourselves", said Werner Matthias Dornscheidt, President and CEO of Messe Duesseldorf GmbH, commenting on the year's performance. Capital goods-related fairs performed particularly well, with the interpack, MEDICA, EuroShop and GDS events accounting for half of net sales. Dornscheidt added, "As a key European trading platform, 2005 saw us demonstrate yet again our role as a broker of communications in global economic relationships".

Eighteen proprietary events as well as 16 jointly coordinated and guest events were staged at the Duesseldorf Trade Fair Center during 2005. A total of 26,281 exhibitors presented their products and services over a net exhibition space of 1,042,087 square meters to 1,321,098 visitors from all corners of the globe. Taking into account the 1,011,280 Duesseldorf Congress participants, the city extended a welcome to some 2.3 million visitors during 2005.

The performance of the international fairs, excluding foreign subsidiaries, reached new record levels during the financial year just ended. In total, 19 proprietary events (including joint events / cooperation arrangements), 54 events on commission and more than 120 sales promotion events were staged worldwide. Taking subsidiaries into account, Messe Duesseldorf Group staged 74 events overall (excluding events on commission). Along with Brno, Russia and China continue to be the strongest markets, accounting for a high proportion of international sales.

The international activities of Messe Duesseldorf in 2005 once again boosted the increasingly international reach of Duesseldorf-based events. Last year, 56 percent of exhibitors and 29 percent of visitors came from outside Germany. The frontrunners in terms of their share of non-German exhibitors were GDS in the spring of 2005 (84%), ProWein (72%), followed by MEDICA and interpack (66% respectively). With regard to the proportion of visitors from outside Germany, the leaders were GDS in autumn 2005 (59%), EuroShop (57%) and interpack (55%).

"Naturally, it is not easy to improve on exceptional years such as 2004. Especially during periods when fewer events are organised due to their staging cycles, it is all the more important to focus on one’s strengths. And, along with Duesseldorf's global No. 1 fairs, these strengths lie in pursuing a large-scale international presence", noted Lord Mayor Joachim Erwin, Chairman of the Supervisory Board of Messe Duesseldorf, commenting on the financial results. Erwin went on to say: "Following its success in generating additional sales to offset initial forecasts of losses, Messe Duesseldorf has ended the 2005 financial year with substantial profits, which is extremely good news for our trade tax. By offering innovative concepts both at home and abroad, the company has also further strengthened Duesseldorf’s position as a stimulus to the economy."

Due to the staging cycle of events, the 2006 financial year will be weaker in terms of sales and net income, with 41 proprietary and jointly coordinated events being held at the Duesseldorf Trade Fair Center. Messe Duesseldorf expects to welcome 22,000 exhibitors and one million visitors from around the world to its 28 proprietary events.

2006's highlights will include boot Duesseldorf, CPD DueSSELDORF, GDS, TOP HAIR INTERNATIONAL, BEAUTY INTERNATIONAL Duesseldorf, EuroCIS, ProWein, the wire & Tube trade fair duo, CARAVAN SALON DueSSELDORF, TourNatur, the InterMopro, InterMeat, InterCool and hogatec quartet, REHACARE INTERNATIONAL, glasstec, as well as the medical fairs MEDICA and ComPaMED.

Messe Duesseldorf is expanding its global product families by staging new events, which include PACK PRINT INTERNATIONAL - The international Packaging and Printing Exhibition for Asia, Bangkok, TUBOTECH, the International Tube, Fittings, Pipes, Valves and Components Fair in São Paulo and TEKNO / TUBE ARABIA, the International Trade Fair for Industrial Machines, Metalworking, Machine Tools, Tubes & Pipes in Dubai.

In cooperation with the Olma Messen St. Gallen trade fair company, Messe Duesseldorf is currently fine-tuning the most important European fair for nano and micro-technology, the NanoEurope fair & conference, and will be presenting Nano Europe Innovation Parks at selected Duesseldorf events from 2007. Current plans envisage the NanoEurope event alternating between Duesseldorf and St. Gallen on an annual basis starting in 2009. Erwin commented, "As a broker of expertise, Messe Duesseldorf's objective must be to cooperate with exhibitors in order to improve the conditions required for innovation and to strengthen Duesseldorf's position as an important technological center".

To ensure that it also maintains its leading position in the trade fair sector over the long term, Messe Duesseldorf Group is pursuing the following objectives, among others:

Systematic expansion of its global leadership in its key disciplines (printing / packaging / plastics / metallurgy / medicine / fashion & lifestyle),
Promotion of innovation by presenting new trends and technologies in a practical, hands-on context,
Expansion of its spectrum of services and further optimisation of its service-oriented approach under the guiding principle of "customers first".

Werner M. Dornscheidt concluded, "I would like to issue an appeal to those of our domestic competitors who operate their own exhibition centers and have substantially expanded their capacity in recent years. Only by charging adequate prices sufficient to cover costs can we hope to maximise the calibre of events and the level of international business contacts for our customers. Further pursuit of the price dumping policy adopted at other locations in Germany as a means of guaranteeing increased hall occupancy, frequently at the taxpayer's expense, will only serve to undermine the quality of global flagship fairs in Europe and simply strengthen the position of new trade fair locations in the emerging markets such as Asia. The most disheartening aspect of price-dumping for guest organisers and associations is that the trade fair customers are the ones who lose out. Exhibitors and visitors do not generally enjoy any price advantages ... despite the fact that, on average, Germany is already Europe's most cost-effective trade fair location due to its organisational and ownership structure! In my opinion, only those trade fair companies that are able to sustain themselves in the long run without public subsidies can justify their existence!”

Download of this Press Release and the
Statements by Mr. Herrn Erwin and Mr. Dornscheidt