FOR IMMEDIATE RELEASE
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Messe Düsseldorf North America
150 North Michigan Avenue
Chicago, IL 60601
MESSE DÜSSELDORF 2015 RESULTS: EURO 300 MILLION EXPECTED GROUP REVENUE
The Messe Düsseldorf Group continued its success in 2015: in a year with a lower number of events due to the trade fair cycle, the Group expects a sales figure of approximately Euro 300 million (compared to Euro 412 million in 2014). In 2016, it will again see another upswing due to the staging of the No. trade fairs drupa and K and consolidated Group sales are expected to increase to about Euro 400 million.
In 2015, the sales of Messe Düsseldorf were approximately 2% above plan and amounted to Euro 250 million (2014: Euro 348 million), of which Euro 39 million were generated abroad. The operative international business of the Messe Düsseldorf Group amounts to about Euro 93 million (2014: Euro 112 million). “Due to the strategic development of our international portfolio, about 30% of our sales are now generated outside Germany”, explained Werner M. Dornscheidt, President and CEO of Messe Düsseldorf.
Messe Düsseldorf expects to post annual net profits of approximately Euro 26 million (2014: Euro 51.1 million). A one-time “special effect” of Euro 22 million is the result of the sale of Veletrhy Brno a.s. Without this non-recurring effect, the earnings of Messe Düsseldorf amount to Euro 4 million.
Compared to the previous year, the lower annual net profit is primarily due to a lower number of events in the 2015 trade fair year. “As a result of the high number of events in 2016, we expect an increase of our annual net profit to more than Euro 50 million for the coming financial year”, said Werner M. Dornscheidt.
National and international:
Impressive event portfolio as the basis for success
The largest revenue drivers in Düsseldorf were the leading events MEDICA, ProWein, A+A and boot as well as the trade fair quartet GIFA/METEC/THERMPROCESS/NEWCAST. Internationally, the CPM events and the interplastica trade fair in Moscow generated the biggest revenue for the Group. The thematic expertise of Messe Düsseldorf and its export in connection with the trade fair company‘s worldwide portfolio is and will be the guarantee for the successful development of Messe Düsseldorf and the Messe Düsseldorf Group.
At its home base Düsseldorf (Germany), the company organized 30 events (2014: 34), 18 of which were own events and 12 partner or guest events. About 25,700 exhibitors and 1.1 million visitors attended the events in Düsseldorf and confirmed the importance of trade fairs as a marketing tool.
The share of international exhibitors at the company‘s own events in Düsseldorf was again significantly high and increased to about 69% (previous events: 67.2%). “The high level of internationality at our events and the steadily increasing number of decision-makers confirm the world-class quality of Düsseldorf as a trade fair venue”, stated Werner M. Dornscheidt. Events such as NEWCAST (85%), ProWein (84% percent) and MEDICA (78%) were impressive proof. With around 26%, the share of international trade visitors almost reached the level of previous events. The highest shares were recorded at NEWCAST with 66% and MEDICA with a 61% share of foreign visitors.
91 own events and participations abroad
Russia remains an important international market for Messe Düsseldorf
Messe Düsseldorf takes a positive view of its international business development. About Euro 93 million were generated abroad in 2015, with the subsidiaries in Brno (Czech Republic) contributing Euro 32 million, the Moscow and Singapore subsidiaries Euro 7 million each. The contribution of the Igedo Company amounted to Euro 10 million. Overall, Messe Düsseldorf organized 91 own events and participations (2014: 93). In 2016, 97 events and participations are scheduled to take place abroad.
In the Czech Republic, the stated goal for 2015 was the sale of shares in the Brno subsidiary, Veletrhy Brno a.s. Werner M. Dornscheidt commented: “The decision to sell our shares is the appropriate business decision to respond to the changed market situation. Changes in the Central and Eastern European markets - partly triggered by the financial and economic crisis – have led to a stronger regionalization of the trade fair business.” Messe Düsseldorf was in the process of repositioning its international activities and intends to show even greater commitment in the Asian, North American and South American economic regions. The Brno and Düsseldorf trade fair companies continue to be associated as partners.
Despite the crisis, Russia continues to be the international market generating the highest sales for Messe Düsseldorf. 57% of Messe Düsseldorf’s international sales were generated there. However, the recession, currency exchange losses and sanctions have impacted the Russian economy strongly and have also reached the trade fair market. “The tense situation in Russia left clear marks on the country’s trade fair market in 2015”, reported Wernder M. Dornscheidt.
Other important markets for Messe Düsseldorf in 2015 were India with a 10% share of international sales (2014: 6%), China with 8% (2014: 11%) and the United Arab Emirates with 6%.
2016 Focus: Further quality development of the No. 1 international trade fairs drupa and K
2016 will be an important year for the further development or repositioning of the international No. 1 trade fairs organized at Messe Düsseldorf’s home base. drupa, the No.1 international trade fair for print and crossmedia solutions (May 31 - June 10, 2016) will change to a three-year cycle after 2016 and thus accommodate the transformation of this industry due to digital developments. New applications, solutions and innovative technologies such as 3D printing, printed electronics or functional printing will become a major focus. For these reasons, drupa revised and extended its nomenclature and now addresses new target groups from the manufacturing industries. drupa 2016 is again sold out. All leading international manufacturers will be present and about 300,000 trade visitors are expected.
K, The World's No. 1 Trade Fair for Plastics and Rubber (October 19 – 26, 2016), will help to further intensify the dialogue between research and industry. Following its premiere in 2013, it will further expand the Science Campus with an increasing number of participating scientific organizations. Supplementing the presentations of universities, institutes and research institutions, the event will present topics such as “resource efficiency”, “Industry 4.0”, “new materials” and “lightweight construction”. The “Plastics shape the future” special show will presents the developments already taking shape today and the visions which can be achieved tomorrow.
Highlights in 2015
In China, the global Packaging & Processing portfolio was expanded by the new trade fair quartet swop – Shanghai World of Packaging. The retail technology trade fair C-star had a successful premiere last year in Shanghai. As an important international trading and contact platform in the growth markets of the Middle East and the United Arab Emirates, the Metal Middle East trade fair could position itself in Dubai. interplastica, the leading plastics trade fair in Russia, was held not only in Moscow but was also launched in the Kazan metropolitan area.
Highlights in 2016
In India, the new FoodPex India will complement the successfully established International PackTech India and drink technology trade fair duo in Mumbai. The portfolio of events hosted in connection with the ProWein No. 1 international trade fair is also growing: after the Düsseldorf event successfully expanded to China in 2013, a new wine trade fair will be held this year in Singapore: ProWine Asia. A satellite event of the Düsseldorf PUMP SUMMIT expert conference will take place as part of the PUMP SUMMIT AMERICAS in Houston for the first time.
Designing the future: Messe Düsseldorf 2030
With its focus on the development of international events, the company started implementing its “Messe Düsseldorf 2030” concept in 2015: “With this project, we will focus even more strongly on further developing our global portfolios and strengthening our international sales activities. And we also intend to further develop our leading global brands in Düsseldorf and our digital customer services”, explained Werner M. Dornscheidt. This means having the company react to the challenges and transformations of the digital age, especially digital transformation.
Freedom from subsidies and growth as the basis for further investments
Its solid annual net profits provide the basis for Messe Düsseldorf to undertake new investments, extend its event portfolio worldwide and thus consolidate its leading international position in the long run. “We continue to operate without any subsidies and grow organically”, underlined Werner M. Dornscheidt.
As in previous years, the majority of the operative cash flow will be used for to the modernization of the Düsseldorf exhibition center as well as the further development of the contents and operative development of the company’s global portfolio. Specifically, the company has completely rebuilt or modernized 10 of its 19 halls by the end of 2015. Work will continue on three further halls in 2016 and the gradual modernization of the CCD Süd Congress Center will continue in the years to come. Messe Düsseldorf plans to complete the modernization of its exhibition center until 2030. The planned investment total for all modernization and new construction projects will amount to about Euro 636 million. All investments were and will continue to be funded from the company‘s own resources.
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: email@example.com; Visit our web site http://www.mdna.com; Subscribe to our blog http://blog.mdna.com; Follow us on twitter at http://twitter.com/mdnachicago