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Messe Düsseldorf Group sees record increase in profits

The Messe Düsseldorf Group closed the 2014 financial year with a net result exceeding expectations. Due to the trade fair cycle, 2014 featured a large number of events, with sales revenue of EUR 411.5 million (2013: EUR 322.9 million). The Group achieved EUR 57.7 million net profits after tax (2013: EUR 14 million).

Around EUR 111.8 million in revenue was generated by the Group outside Germany (almost the same level as in 2013). 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). Overall, the foreign share of the Group’s revenues was 26 percent (2013: 35 percent).

In line with the trade fair cycle, Messe Düsseldorf’s revenue increased to approx. EUR 348 million (previous year: approx. EUR 258 million). Own events in Düsseldorf, Germany 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 No. 1 trade fairs interpack, EuroShop, MEDICA, ProWein, glasstec, boot, wire, Tube and CARAVAN SALON. The annual company results after tax were about EUR 51 million (2013: EUR 11 million). The share of international business, implemented directly by Messe Düsseldorf, was about 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 & CEO of Messe Düsseldorf, considered the result as confirmation of the Group’s strategy:

“Our capability for action is due to our business success as the worldwide number one in the organization of capital goods trade fairs and our non-subsidized business activities. This has enabled us to stay on course when facing tough competition and challenging economic conditions. This ultimately benefits our owners through positive socio-economic effects.”

Sustainable business secured by solid financial and asset position

Compared with the previous year, the total assets of the Messe Düsseldorf Group in 2014 decreased by 4.8 percent to EUR 644 million due to fewer advance payments and liabilities received – 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 about EUR 126 million. The asset situation continues to be characterized by fixed assets at 74.9 percent 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 percent (2013: 55.4 percent).

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 optimizing the Düsseldorf Exhibition Center in 2014. The complete refurbishment of all halls and customer areas should be completed by 2030. The investment total is EUR 600 million, generated by the Messe Düsseldorf Group.

“The only way we can keep developing our national and international business,” said Werner M. Dornscheidt, “is by being a powerful partner in industry, by creating confidence in our expertise as event organizers and by making the required investment decisions. This means that we need to stay financially independent in the future.”

High level of internationality confirms Düsseldorf as a venue with world class quality

Overall, Messe Düsseldorf held 21 own events and 15 guest events at its home base in 2014. Filling 10.8 million square feet of net hall space (previous year: 10.5 million square feet), 31,269 exhibitors (2013: 25,126) showcased their innovative products and services to around 1.4 million visitors (previous year: 1.2 million). Congresses attracted over half a million visitors.

The share of international exhibitors at own events in Düsseldorf continued to be significant, averaging 70 percent (previous events: 68 percent). This high level of internationality was particularly noticeable at the wine trade fair ProWein (82.5 percent), the industrial valves and fittings trade show Valve World Expo (79.5 percent) and the medical device technology trade fair MEDICA (77.7 percent). The proportion of foreign trade visitors also increased for the events in Düsseldorf, reaching around 38 percent (previous events: 36 percent). The highest rates were achieved at the packaging trade show interpack (66 percent) and MEDICA (61.2 percent). “The global market quality of our events is increasingly also attracting more export-focused decision-makers,” states Werner M. Dornscheidt.

Expansion of the international event portfolio: product families

Messe Düsseldorf can also look back to a successful year in the international trade fair business – with a total of 36 contracted and 17 own and joint events. The majority of the events were held in Russia, China and India. In addition, 34 international events were organized by Trade Fairs Brno in the Czech Republic.

Focusing on the development of international events, the “Messe Düsseldorf 2030” concept was developed in 2014. “This way 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,” explains Werner M. Dornscheidt.

In 2014, the first MEDICAL WORLD AMERICAS was held in the U.S., with success results. Worldwide, in addition to MEDICA, the Group now has a total of eight other events for the medical device technology sector. 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), increasing the number of events in India in this segment to five. Both in China and Japan, satellite events of the conference exhibition ENERGY STORAGE EUROPE had their first staging. With this Messe Düsseldorf is 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. With Metal Middle East in Dubai held at the beginning of the year, Messe Düsseldorf placed 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 plans to organize a second trade fair for the plastics sector. In addition to the well established interplastica in Moscow, a new event will be held in the emerging economic region of Kazan (Tatarstan) in September this year: interplastica Kazan 2015, Trade Fair Plastic and Rubber, in conjunction with the Tatarstan Oil, Gas & Petrochemical Forum. The successful group of international packaging trade fairs will be developed further by Messe Düsseldorf in China to include the trade fair quartet of SWOP, the Shanghai World of Packaging. In November 2015 CHINAPHARM will for the first time be accompanied by PacPro Asia, FoodPex and BulkPex. Packaging was also the focus at the first staging of Bevtec Asia this year in Bangkok. Another successful launch in China was C-Star (retail sector) in mid-May, the first EuroShop offshoot at the exhibition venue in Shanghai. In April 2016, Messe Düsseldorf will launch ProWine Asia in Singapore for the dynamic south-east Asian wine market.

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 loss. After the second SAVE FOOD conference at interpack 2014, this project continued this year. The SAVE FOOD Meeting in May 2015 at Nestlé’s headquarters in Vevey, Switzerland attracted 173 partners from industry, FAO-registered NGOs and research institutions.

Forecast for 2015: EUR 301 million Group revenues as expected due to trade fair cycle

The outlook for Messe Düsseldorf’s current fiscal year is positive. “In 2015, which has a lower number of events due to our trade fair cycle, we are expecting Group revenues of around EUR 301 million,” remarks Werner M. 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 program includes a number of high-revenue events.

For information on any of the trade fairs in the worldwide program of the Messe Düsseldorf Group, contact Messe Düsseldorf North America, 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312) 781-5180; Fax: (312) 781-5188; E-mail: info@mdna.com; Visit our website http://www.mdna.com; Subscribe to our blog at http://blog.mdna.com; Follow us on twitter at http://twitter.com/mdnachicago

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