Bumper Exhibition Year gives Messe Düsseldorf a Significant Rise in Turnover
Bumper Exhibition Year gives Messe Düsseldorf a Significant Rise in Turnover
Group turnover rises to Euro 410 Million; Messe Düsseldorf GmbH turnover higher than planned; Post-tax result for the GmbH at a high level for cyclical reasons; Freedom from subsidies forms basis for further Investments; Position confirmed as Düsseldorf’s most important promoter of trade;
The Messe Düsseldorf Group can look back on a successful financial year in 2014. The entire group achieved turnover worth Euro 410 m (previous year Euro 323 m). The turnover of Messe Düsseldorf GmbH is some 4% higher than planned standing at Euro 340 m (previous year Euro 258 m), Euro 44 m of which was generated abroad. Messe Düsseldorf GmbH calculates an annual post-tax surplus of over Euro 30 m (previous year Euro 10.9 m).
Due to the positive development of turnover and costs as well as positive equity earnings the 2014 annual result for Messe Düsseldorf GmbH is higher than planned. This lays the foundations for continued successful business development and new investments. For 2015 a weakening of turnover to approx. Euro 230 m is expected for cyclical reasons. “Thanks to convincing cost management and freedom from subsidies we were able to increase our exhibition results in 2014. We are very satisfied,” says trade fair boss Werner M. Dornscheidt. “The highlight in 2014 was interpack with 6% more visitors and sold-out exhibition space – which was a first. Our other events in Düsseldorf were also able to post growth,” said Dornscheidt. As in previous years, the profits will be channelled into the modernisation of Düsseldorf exhibition centre and the further development of content for global trade fair portfolios.
Commenting on this Dornscheidt said: “Competition among trade fair organisers, especially in Germany, is becoming harder and harder. Unfortunately, it is also considerably distorted by the sometimes large subsidies from public sources.” Messe Düsseldorf, he said, is one of just two companies that works without subsidies generating investments from its own sources. In specific terms, by year end 2014 the company built from scratch or modernised 9 of 19 halls. This year the work will be continued on 2 other halls. In addition, the CCD Süd Congress Center is to be gradually modernised over the next few years. By 2030 Messe Düsseldorf wants to complete renovation on the exhibition centre. This means from 2015 to 2030 the amount to be invested in renovation and new building work stands at some Euro 600 m.
Financial year 2014: leading world trade fairs in Düsseldorf boost turnover. Internationality rises again. The largest generators of turnover in the year just ending were the N°.1 events interpack, EuroShop, MEDICA, ProWein, glasstec, boot, wire/Tube and CARAVAN SALON. Celebrating its premiere in December and running parallel to Valve World Expo was PUMP SUMMIT. A total of 34 events were held at the Düsseldorf exhibition centre in 2014 (previous year 27), of these 19 were proprietary events and 15 were partner/guest events. Some 31,000 exhibitors and 1.4 m visitors took part in the fairs in Düsseldorf and impressively confirmed the relevance of trade fairs as a marketing tool.
“Though exhibitors and trade visitors are also visitors to the city,” delights Dornscheidt. “interpack alone attracted almost 10,000 more trade visitors.” An increase in exhibitor and visitor numbers, he says, also benefits the location. Dornscheidt continues: “A rise in turnover for Messe Düsseldorf is a kind of barometer for turnover boosts for companies in Düsseldorf.” Visitors to trade fairs in Düsseldorf in an average trade fair year spend a total of Euro 600 m, 50% of which goes on food and hotels. Add to this Euro 207 m spent by exhibitors on accommodation, food and private purchases and Euro 242 m exhibitor outlay on stand construction. Obviously, this spending primarily benefits Düsseldorf and the region.
The proportion of international exhibitors at proprietary events in Düsseldorf was once again strikingly high and also improved reaching an average of 69.4% (previously 67.1%). “We see the high level of international exhibitors and the ever growing number of decision-makers as a key quality feature at our events,” explains Dornscheidt. In particular, ProWein (82%), MEDICA (77%), the world’s largest medical forum, wire/Tube, international trade fairs for cable, wire and tubes as well as interpack, the world’s leading fair for packaging technology (all 75%) impressively proved this. The proportion of foreign visitors rose to an average of 37.3% (previously 36%). The highest figures here were achieved by interpack at 66% and retail technology trade fair EuroShop with 63% of foreign visitors.
“Foreign exhibitors and visitors, in particular, spend a lot of money in connection with trade fair participations and stimulate the domestic economy in this way,” explains Dornscheidt. “They obviously expect their interests to be treated fairly in return.” Specifically, hotel prices during trade fairs were often at the focus of criticism. “Euro 1,500 for a 3-star room, as reported during MEDICA, is sure to be an exception,” comments Dornscheidt. From Düsseldorf’s perspective it would certainly be regretful if trade fair visitors had to opt for alternatives in neighbouring towns due to high accommodation costs. For this reason, he says, Messe Düsseldorf offers fair options during exhibition periods in cooperation with partners and welcomes the development of hotel capacities in the city.
97 of proprietary events and participations realised abroad. Impact of the Ukraine crisis on the trade fair business only slight. Messe Düsseldorf also views the development of its group subsidiaries positively. The lion’s share of proceeds was generated by its subsidiaries in Brno (Euro 38 m), Moscow (Euro 8 m) and China (Euro 6.3 m). A total of 97 proprietary events and participations were realised abroad, of these 35 by the subsidiary in Brno. In 2015 97 events and participations are also planned abroad.
Russia continues to be Messe Düsseldorf’s strongest foreign market in terms of event turnover. 69% of the company’s foreign turnover was generated here. The political tensions in Russia and the Ukraine in 2014 only slightly impacted the events in these countries. Ugol & Mining in the Ukraine was cancelled. Overall, the Russian events were able to conclude the year at the same level as previous events. “Obviously, the impact of EU sanctions is clearly visible,” says Dornscheidt. “However, our core expertise, the holding of capital goods fairs, is currently less affected by negative influences. Our partnerships are going well,” he adds. Nevertheless, we are not able to exclude long term drops in earnings due to the current uncertain climate.
Other key markets for Messe Düsseldorf in 2014 were China with an 11% foreign share in turnover (previous year 8%) as well as India with 6% (previous year 3%).
Outlook: strategic expansion of commercial activity. Development of the international event portfolio. Internationally Messe Düsseldorf continues on course for growth. Last year saw the founding in Turkey of a new event for health and safety in the workplace, TOS+H EXPO, while the USA was host to the medical technology fair MEDICAL WORLD AMERICAS for the first time. Both in China and Japan spin-offs of the conference trade fair Energy Storage celebrated their premieres. It was also particularly pleasing to see the development of the Food Processing & Packaging Exposyum held in its second edition in Nairobi, Kenya which was able to increase its exhibitor numbers from 21 to 65. Over 1,000 experts from Kenya and neighbouring East African states attended this combination of exhibition and symposium.
In 2015 the interpack family is to be extended on the Chinese market by the new trade fair quartet SWOP – Shanghai World of Packaging. The already established CHINA PHARM, the China International Pharmaceutical and Cosmetic Industry Exhibition, will now be flanked for the first time by the new exhibitions PacPro Asia, FoodPex and BulkPex. This will make SWOP an ideal platform for forging new business contacts on the Chinese market and sounding out partnership options. A spin-off to EuroShop due to kick off in Shanghai is C-Star 2015 in Shanghai. Furthermore, Messe Düsseldorf will be holding India SMART GRID Week in Bangalore as well as Metal Middle East in Dubai. New at the exhibition centre on the Rhine is EuroMold, the World Fair for Moldmaking and Tooling, Design and Application Development. This trade fair is moving from Frankfurt to Düsseldorf. The event will be held here for the first time from 22 to 25 September 2015.
The corporate group sees positive signs of development in Indonesia and Brazil. The founding of a Brazilian subsidiary is currently being discussed. Further discussions for possible collaboration in places such as Macau and Iran are also underway.
Development of the Corporate Strategy: Messe Düsseldorf 2030. “We are currently working on the ‘Messe Düsseldorf 2030’ concept,” reports Werner M. Dornscheidt. In focus here, he said, is the strategic expansion of business activities both nationally and internationally and optimisation of the global market quality of Düsseldorf events in terms of brand management and customer services. Dornscheidt: “Messe Düsseldorf sees itself as a partner of industry and works closely with its representatives to constantly optimise their events.” In this way it safeguards its portfolio at the home location.
The Messe Düsseldorf Group *: With Euro 410 m turnover in 2014 the Messe Düsseldorf Group was able to maintain its position as one of the most successful German trade fair companies. At the events in Düsseldorf this trade fair year saw some 31,000 exhibitors present their products to 1.4 trade visitors. Add to this more than half a million congress visitors. With some 50 trade fairs, including 24 N° 1 events in the five fields of expertise machines, plant and equipment, trade and services, medicine and health, fashion and lifestyle as well as leisure at the Düsseldorf location and some 80 to 100 of the company’s own events, participations and commissioned events abroad, the Messe Düsseldorf Group is one of the leading export platforms in the world. Here Messe Düsseldorf GmbH ranks N° 1 in terms of internationality at capital goods trade fairs. At proprietary events in the field of expertise machines, plant and equipment some 69% of exhibitors and 58% of trade visitors come to the Rhine from abroad while customers from a total of 162 countries attend trade fairs in Düsseldorf. Sales bases in 132 countries (71 foreign representatives) and competence centres in 7 countries form the global network of the corporate group. * All figures subject to the final balance