The Board of Directors approves the Interim management report at 31 March 2018

31/05/2018

Strong growth in all first quarter 2018 financial and economic figures.

2018 EBITDA expected in the upper part of the Euro 15-17 million range already communicated due to the strong performance of the exhibitions held in the first quarter.

Revenues of Euro 77.3 million, a 24% increase compared to the figure of Euro 62.1 million in the first quarter of 2017

EBITDA of Euro 19.7 million, a significant improvement compared to the figure of Euro 8.1 million in the first quarter of 2017

  •  EBIT of Euro 18.2 million compared to Euro 6.4 million in the first quarter of 2017

  • Profit before taxes of Euro 18.1 million compared to Euro 6.2 million in the first quarter of 2017
  • Net cash of Euro 20.6 million, compared to net debt of Euro 0.8 million at 31 December 2017, which also reflected the positive trend in working capital

The 2018-2022 Business Plan will be presented on 23 May 2018

Milan, 11 May 2018. The Board of Directors of Fiera Milano S.p.A., meeting under its Chairperson, Mr Lorenzo Caprio, approved the Consolidated Interim Management Report for the First Quarter 2018.

The Chief Executive Officer and General Manager of Fiera Milano, Mr Fabrizio Curci, commented: “The positive performance of the exhibitions in the first quarter, the more favourable exhibition calendar in the first part of the year and the positive impact of the cost restructuring have afforded us particular satisfaction. The better than expected results means that guidance for full-year 2018 EBITDA is expected to be in the upper part of the previously stated range. Confirmation that we are on the right path also came from the recent re-admission of our shares to the STAR segment of the Italian stock market.”

There was a considerable year-on-year increase in the first quarter 2018 results of the Fiera Milano Group. This improvement was mainly attributable to the more favourable exhibition calendar and to the commercial success of the exhibitions and the consequent increase in sales of related services. The ongoing cost restructuring also had a positive impact.

The Board of Directors has appointed Mr Marco Pacini, CFO of Fiera Milano Group, as the Manager responsible for the Company financial statements from the date of publication of the Interim Management Report for the First Quarter 2018.

Lastly, the Board of Directors, using the mandate given it by the Shareholders' Meeting of 23 April 2018 and on the proposal of the Appointments and Remuneration Committee, approved the rules for implementation of the Performance Share Plan 2018-2019, which also identify the beneficiaries of the Plan and the allocation of the variable component of remuneration to the latter. 

■ FIRST QUARTER RESULTS
Revenues from sales and services were Euro 77.3 million, an increase of 24% compared to

the figure of Euro 62.1 million in the first quarter 2017.

EBITDA was Euro 19.7 million compared to Euro 8.1 million in the first quarter of 2017; the increase reflected mainly the higher revenues and the effects of the cost restructuring that were, in part, offset by higher employee costs for the variable component of remuneration.

The net operating result (EBIT) was Euro 18.2 million compared to Euro 6.4 million in the first quarter of 2017 and reflected the increase in EBITDA.

Profit before taxes was Euro 18.1 million compared to Euro 6.2 million in the first quarter of 2017.

Cash flow before taxes (calculated as the profit before taxes plus depreciation, amortisation, provisions and impairment charges) was Euro 19.7 million compared to Euro 8.6 million in the first quarter of 2017.

■ RESULTS BY OPERATING SEGMENT

In the quarter under review, seventeen exhibitions and eight congresses with related exhibition space were held in the fieramilano and fieramilanocity sites covering a total of 529,190 net square metres of exhibition space, compared to 467,275 net square metres in the same quarter of 2017. The number of exhibitors rose from 9,385 in first quarter 2017 to 11,090 in first quarter 2018. Fiera Milano organised four exhibitions abroad in the period under review covering a total of 95,380 net square metres of exhibition space (82,435 net square metres in first quarter 2017) with 1,865 exhibitors (1,795 in first quarter 2017).

Revenues from sales and services, before elimination of inter-segment transactions, totalled Euro 91.9 million, an increase of 25% compared to the figure of Euro 73.4 million in the first quarter of 2017.

  • Italian Exhibitions had revenues of Euro 68.9 million (+25% compared to the first quarter 2017). EBITDA was Euro 16.8 million (Euro 7.4 million in first quarter 2017) and EBIT was Euro 16.2 million (Euro 6.6 million in first quarter 2017).

  • Foreign Exhibitions generated revenues of Euro 0.9 million compared to a figure of Euro 0.5 million in the first quarter of 2017. EBITDA was Euro 1.8 million (Euro 0.9 million in first quarter 2017) and benefited from improved results in South Africa and from other income for damages paid to the Brazilian subsidiary following settlement of a legal dispute. EBIT was Euro 1.7 million (Euro 0.7 million in first quarter 2017).

  • Stand-fitting Services had revenues of Euro 12.7 million, an increase compared to the figure of Euro 9.8 million in the first quarter of 2017 that reflected the more favourable exhibition calendar. EBITDA was Euro 1.3 million (Euro 0.6 million in first quarter 2017) and EBIT was Euro 1.0 million (Euro 0.1 million in first quarter 2017).

  • The Media segment had revenues of Euro 2.9 million, up 19% year-on-year, due to higher billboard and sponsorship revenues. EBITDA was Euro 0.1 million (a negative figure of Euro 0.3 million in first quarter 2017) and EBIT was breakeven (a negative figure of Euro 0.4 million in first quarter 2017). 

  • NET FINANCIAL POSITION: At 31 March 2018, the Group had net cash of Euro 20.6 million compared to net debt of Euro 0.8 million at 31 December 2017. The improvement in the net financial position was from the positive operating cash flow generated in the period under review and from advance payments as, in coming months, the exhibition calendar includes some important exhibitions. The improvement was, in part, offset by the advance payment of the six-monthly rent for the exhibition sites.
  • BUSINESS OUTLOOK: The positive business trend has also been confirmed by the exhibitions held after the end of the first quarter. In particular, the Salone del Mobile had a new record edition.
  • Following the good performance of the exhibitions in the first quarter, 2018 EBITDA is expected to be in the upper part of the previously stated range of Euro 15-17 million; this is higher than the figure for the previous financial year and will be achieved also through the cost restructuring and despite the less favourable exhibition calendar in Italy in the absence of some important directly organised biennial exhibitions. 

    This press release contains forward-looking statements. These statements are based on the current expectations and assumptions of the Group regarding future events and by their very nature are subject to certain risks and uncertainties. The actual results could differ materially from those contained in these statements for a variety of factors that include changes in general economic and business conditions, continued volatility and a further deterioration in the capital and financial markets and many other factors, the majority of which are outside the control of the Group.

Attachments (not subject to legal audit):
Consolidated Income Statement
Reclassified Consolidated Statement of Financial Position

 

For further information:

Investor Relations Fiera Milano S.p.A. Gianna La Rana Tel +39 0249977816 gianna.larana@fieramilano.it www.fieramilano.it

Ufficio Stampa Fiera Milano S.p.A. Gabriele De Giorgi Tel +39 0249977428/76077 gabriele.degiorgi@fieramilano.it www.fieramilano.it

Image Building Giuliana Paoletti, Vanessa Corallino Tel +39 02 89011300 fieramilano@imagebuilding.it 

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