Group revenues rise to EUR 412 Million. Consolidated net income after tax: EUR 58 Million. 70 per cent international exhibitors at the Group’s proprietary events in Düsseldorf. Roadmap MD 2030: focus on expanding the international Portfolio.
The Messe Düsseldorf Group concluded the 2014 financial year with a net result that exceeded expectations. Due to the trade fair cycle, 2014 featured a large number of events, with a sales revenue of EUR 411.5 million (2013: EUR 322.9 million). The Group as a whole achieved EUR 57.7 million net profit after tax (2013: EUR 14 million). Around EUR 111.8 million revenue was achieved by the Group outside Germany, i.e. nearly the level of the previous year. Russia (EUR 45.9 million) remained the most important foreign market, followed by the Czech Republic (EUR 33.3 million) and China (EUR 16.9 million). In all, the foreign share of the Group’s revenues was 26 per cent (2013: 35 per cent).
In line with the trade fair cycle, Messe Düsseldorf GmbH’s revenue rose to approx. EUR 348 million (previous year: approx. EUR 258 million). Proprietary events in Düsseldorf accounted for approx. EUR 277 million (2013: EUR 195 million), while guest events and other revenues were about EUR 29 million (213: EUR 18 million). During the past financial year the biggest revenue drivers in Düsseldorf were the number-one events interpack, EuroShop, MEDICA, ProWein, glasstec, boot, wire, Tube and CARAVAN SALON, which greatly stimulated their respective industries for future developments. The annual GmbH results after tax were approx. EUR 51 million (2013: EUR 11 million). The share of international business, implemented directly by the GmbH, was approx. EUR 42 million (2013: EUR 45 million). The revenue drivers were Collection Première Moscow, interplastica, METALLOOBRABOTKA, ZDRAVOOKHRANENIYE, UPAKOVKA / UPAK ITALIA and Chinaplas.
Werner M. Dornscheidt, President & Chief Executive Officer of Messe Düsseldorf GmbH, sees the result as confirming the Group’s strategy: “Our capacity for action is due to our business success as the worldwide number one in the organisation of capital goods trade fairs and our non-subsidised business activities. This has enabled us to stay on course in the face of tough competition and a challenging economic environment. This ultimately benefits our owners through positive socioeconomic effects.”
Sustainable business secured by sound financial and asset Position
Compared with the previous year, the total assets of the Messe Düsseldorf Group decreased by 4.8 per cent, to EUR 644 million. The main reason was the receipt of fewer advance payments and liabilities – a reduction in preparation for 2015, which is a weaker year in the trade fair cycle. Another result was a decrease in the Group’s liquid funds to approx. EUR 126 million. The asset situation continues to be characterised by fixed assets at 74.9 per cent of the balance sheet total. On the liabilities side the Group’s equity increased from EUR 375 million to EUR 427 million. This was an equity ratio of 66.3 per cent (2013: 55.4 per cent).
Upon recommendation of the Supervisory Board the General Meeting decided to issue a dividend in the amount of EUR 14.827 million.
As in previous years, a major emphasis was placed on optimising the Düsseldorf Exhibition Centre in 2014. The complete refurbishment of all halls and customer premises should be completed by 2030. The investment total is EUR 600 million, generated in the Group’s own strength.
“The only way we can keep developing our national and international business,” says Dornscheidt, “is by being a powerful partner in industry, by creating confidence in our expertise as event organisers and by making the required investment decisions. This means that we need to stay financially independent in the future.”
The high level of internationalism shows that Düsseldorf is a venue with world class quality.
In all, Messe Düsseldorf GmbH held 21 proprietary events and 15 guest events at its home base. Filling 1.32 million square metres of net hall space (previous year: 979,346 square metres), 31,269 exhibitors (2013: 25,126) showcased their innovative products and services to around 1.4 million visitors (previous year: 1.2 million). Conventions attracted over half a million visitors.
The proportion of international exhibitors at proprietary events in Düsseldorf itself continued to be significant, averaging 70 per cent (previous events: 68 per cent). This high level of internationalism was particularly in evidence at the wine trade fair ProWein (82.5 per cent), the industrial valves and fittings trade show Valve World Expo (79.5 per cent) and the medical device technology trade fair MEDICA (77.7 per cent). The proportion of foreign trade visitors also increased for proprietary events in Düsseldorf itself, reaching around 38 per cent (previous events: 36 per cent). The highest rates were achieved at interpack (66 per cent) and MEDICA (61.2 per cent). “The global market quality of our events is increasingly also attracting more export-focused decision-makers,” says Dornscheidt.
Expansion of the international event portfolio: product families
Messe Düsseldorf GmbH can also look back to a successful year in the international trade fair business – with a total of 36 contracted and 17 proprietary and joint events. The largest number of events were held in Russia, China and India. In addition, 34 international events were conducted by Trade Fairs Brno at its home base in the Czech Republic.
Focusing on the development of international events, a roadmap was set up in 2014, entitled Messe Düsseldorf 2030: “In this way,” says Dornscheidt, “we are putting an even greater emphasis on our international product families and on strengthening our international sales activities. But we also want to keep developing our global brands in Düsseldorf and our digital customer service.”
In 2014 the first MEDICAL WORLD AMERICAS was held in the United States, where it was highly successful. Worldwide, in addition to MEDICA, the Group now has a total of eight further events on the subject of medical device technology. Messe Düsseldorf’s international event portfolio on “Metals and Flow Technologies” was extended in 2014 to include the International Thermprocess Summit in Mumbai (ITPS Asia), so that the total number of trade fairs in India is now 5 in this segment. Both in China and Japan premières were celebrated at satellites of the conference exhibition ENERGY STORAGE EUROPE, which is currently represented in all 5 leading markets for renewable energies. Another positive début last year – this time on the Turkish market – was TOS+H EXPO, a new occupational health and safety event in Istanbul.
Outlook 2015: new events in other countries
The product portfolio will continue to develop further in 2015/2016. Metal Middle East in Dubai, which was held at the beginning of the year, meant the placement of an important international trade and contact platform on the attractive growth market of the Middle East and the United Arab Emirates. In Russia Messe Düsseldorf Moscow is planning to hold a second trade fair on the subject of plastics. Alongside interplastica in Moscow, which has been successful for many years, a further event will be held in the emerging economic region of Kazan (Tatarstan) in September this year: the interplastica Kazan 2015 Trade Fair Plastic and Rubber in conjunction with Tatarstan Oil, Gas & Petrochemical Forum. The successful group of international packaging trade fairs will be expanded by Messe Düsseldorf in China to include an entire trade fair quartet at SWOP, the Shanghai World of Packaging. In November 2015 CHINAPHARM will for the first time be accompanied by PacPro Asia, FoodPex and BulkPex. The packaging theme was also at the centre of attention at the first Bevtec Asia 2015 in Bangkok.
Another promising project is the corporate initiative SAVE FOOD, created by Messe Düsseldorf, interpack and the Food and Agriculture Organisation (FAO) with the aim of reducing worldwide food losses. After holding its second convention at interpack 2014, SAVE FOOD, it is expected to pursue new successful paths this year. For the first time the SAVE FOOD Meeting brought together 173 partners from industry, FAO-registered NGOs and research institutions. The event was held at Nestlé’s headquarters in Vevey, Switzerland, on 11 and 12 May.
Another successful launch in China was C-Star in mid-May, the first EuroShop offshoot at the exhibition venue in Shanghai. After receiving positive customer feedback, Messe Düsseldorf decided to run C-Star on an annual basis. April 2016 will see the launch of ProWine Asia in Singapore as a successful event on the dynamic south-east Asian wine market.
Forecast for 2015: EUR 301 million Group revenues, as expected under the trade fair cycle.
The mood at Messe Düsseldorf has so far been positive about the current fiscal year. “In 2015, which has a lower number of events under our trade fair cycle, we are expecting Group revenues of around EUR 301 million,” says Dornscheidt. “The first half of the year got off to a good start, and in the first quarter we recorded a rise in exhibitors and visitors compared with the previous events.” With its leading trade fairs ProWein, GIFA/METEC/THERMPROCESS/NEWCAST, CARAVAN SALON, A+A and MEDICA/COMPAMED, Düsseldorf’s 2015 programme comprises a number of high-revenue events.
Düsseldorf, 22 May 2015