Best trade fair year of any trade fair company with its own site. Düsseldorf events business stable: Strong economic impetus for city and region. CEO Werner M. Dornscheidt: “Sustainable business cushions impact of recession and makes us fit for the future.”
Best trade fair year of any trade fair company with its own site
Düsseldorf events business stable: Strong economic impetus for city and region
CEO Werner M. Dornscheidt: “Sustainable business cushions impact of recession and makes us fit for the future.”
2008 was Messe Düsseldorf’s strongest year ever in terms of sales. “Our sales figure of some €496 million is the highest ever achieved by a German trade fair company with its own site,” said Werner M. Dornscheidt, President and CEO of Messe Düsseldorf GmbH. Exhibitor and visitor numbers likewise set new records. Dornscheidt: “With a cash flow of nearly €99 million, the company is financially healthy and delivered major economic impetus to the city and the region in 2008. It is now a matter of consolidating what has been achieved for our home base in subsequent years and pressing ahead with our global strategy.”
Record earnings in cyclically exceptional business year 2008
Messe Düsseldorf boosted consolidated sales by €142 million or 40 percent in 2008 to some €496 million (2007: €354 million) and generated a consolidated net profit of €66 million (2007: just over €33 million). The largest sales increase was achieved by Messe Düsseldorf GmbH with sales of almost €397 million (2007: €259 million). This represents growth of €138 million or 53 percent on the previous year (which is not comparable due to the events cycle). With net income in this exceptional trade fair year exceeding €60 million, Messe Düsseldorf GmbH more than doubled its previous best net income recorded in 2002 (approximately €30 million).
Sales of some €325 million (2007: €195 million) were generated from proprietary events at the Düsseldorf site as well as €22 million (2007: €20 million) from guest events and other sales. A substantial share of sales was accounted for by the four-yearly drupa and the three-yearly interpack, both of which take up the entire Trade Fair Center. Other major sales drivers were MEDICA, EuroShop, boot, glasstec and wire & Tube, which together made up about 30 percent of total sales.
Record figures for Düsseldorf events
Düsseldorf hosted 25 proprietary events and 15 guest and partner events in 2008. A total of 32,488 (2007: 27,704) exhibitors presented their offerings to 1,964,032 (2007: 1,424,013) visitors. Hall space rented out was increased to 1,488 million square metres (2007: 1,065 million square metres). The proportion of foreign exhibitors was again very high at 56 percent, while the share of foreign visitors increased by 8 percentage points to 37 percent. Proprietary events staged by Messe Düsseldorf GmbH had an even broader international reach, with 61 percent of exhibitors and 39 percent of visitors coming from abroad. In terms of events, drupa, EuroShop, interpack and wire & Tube each reached high levels with roughly 60 percent international visitors. The 2008 congress and event year saw 1,793,000 visitors attend 3,386 events staged by DüsseldorfCongress on 338 days.
2008 Messe Düsseldorf GmbH’s most successful year abroad
In its international trade fair activities, Messe Düsseldorf GmbH looks back on its most successful business year to date with 45 events on commission, 21 proprietary events and participations as well as more than 70 sales promotion events. The proportion of sales accounted for by international trade fair activities carried out by Messe Düsseldorf GmbH itself increased by 17.9 percent in 2008 to over €49 million (2007: €42 million). In total, Messe Düsseldorf GmbH boosted international sales by 43 percent over the last five years. The strongest foreign markets continue to be the CIS states, China and India, where around 88 percent of sales were generated in 2008. Key sales drivers comprised Collection Première Moscow, INTERPLASTICA, METALLOOBRABOTKA, UPAKOVKA/UPAK ITALIA, CHINAPLAS, as well as wire and Tube China.
International Group companies beat sales targets
Messe Düsseldorf GmbH’s foreign subsidiaries and affiliates attained or exceeded their sales targets. Veletrhy Brno a. s. generated a net after-tax profit of over €4 million (2007: €2.5 million) on sales in excess of €68 million (2007: €64 million). The company thus fully met its sales and earnings targets. In line with the events cycle, Messe Düsseldorf North America Inc. increased sales by €1.6 million to €4.5 million. Net profit climbed to some €916,000 (2007: approximately €277,000). As budgeted, sales at Singapore-based Messe Düsseldorf ASIA Pte. Ltd. dropped in 2008 to €2.4 million (2007: €4.2 million) and net profit to some €133,000 (2007: about €272,000). Net profit at OOO Messe Düsseldorf Moscow was on a par with the previous year at €1.1 million, while the company’s sales were 5 percent up on the previous year at €8.1 million. As a result of the events cycle, Messe Düsseldorf China Ltd. achieved a substantial 50 percent sales boost. Sales increased past the €8 million mark and net profit to €1.5 million (2007: around €704,000).
Domestic subsidiaries master challenges
The IGEDO Company slightly increased sales in 2008 to €33.8 million (2007: €33.1 million). While events in Düsseldorf showed a minor drop in sales, international sales were boosted to more than 40 percent and the company generated a net profit of some €44,000 (2007: some €105,000). Sales at DüsseldorfCongress Veranstaltungsgesellschaft mbH matched the previous year’s level with €22.3 million in 2008 (2007: €22.5 million) as a result of the high level of utilisation at the Düsseldorf Trade Fair Center. Net profit fell to approximately €85,000 (2007: around €291,000). DüsseldorfCongress is one of the few congress centers in Germany that generates a profit and hence major synergies for the city. Düsseldorf Fashion House Verwaltungsgesellschaft mbH was renamed in 2008 Messeturm Düsseldorf Verwaltungsgesellschaft mbH. Due to the sale of Fashion House I and Fashion House II in summer 2007, rental income fell from €7.6 million to €2.8 million in 2008. After reversal of a reserve, net profit increased to €8.2 million (2007: approximately €362,000).
Outlook
2009 will be an exceptionally weak year in sales and earnings for the Messe Düsseldorf Group as a result of the events cycle with no major fairs scheduled during the year. The global financial and economic crisis will also impact Messe Düsseldorf GmbH’s trade fair cycle going forward. Risk provision of €5 million has therefore been included in the budget for 2009. Messe Düsseldorf GmbH will also cut expenditure by €5 million in 2009 alone, primarily by means of cost discipline. Messe Düsseldorf GmbH will make use of the relatively small number of events in 2009 to further improve the fairgrounds for customers. Major projects in 2009/2010 include the refurbishment of Hall 5 in Düsseldorf costing around €34.3 million as well as the completion during 2009 of Pavilion P at Brno.
The Messe Düsseldorf Group
With sales of €496 million in 2008, the Messe Düsseldorf Group is the most successful German trade fair company and the most successful trade fair company with its own site in the world. In this exceptional year, 32,488 exhibitors presented their offerings to nearly two million visitors. The Messe Düsseldorf Group is one of the world’s leading export platforms with over 50 trade fairs, including 23 world No. 1 events, in five areas of expertise – machinery, plant and equipment, retail and trade, skilled trades and services, medicine and health, fashion and lifestyle, and leisure – at Düsseldorf and some 120 proprietary events and participations abroad. Messe Düsseldorf GmbH also has the most international capital goods fairs: Almost 60 percent of exhibitors and over 50 percent of visitors to Düsseldorf come from abroad, and customers from a total of 151 countries attend our Düsseldorf events. The Group’s global corporate network includes 66 foreign representative offices serving 117 countries and competence centres in nine countries. The Group workforce averaged 1,503 employees in 2008.
Messe Düsseldorf GmbH
