Fiera Milano Presentation

Fiera Milano
UBM 4 th Small Caps Conference
Milan
22 November 2006
www.fieramilano.it

Forward-Looking Statements
This document has been prepared by Fiera Milano S.p.A. solely for information purposes
and for use in presentations of the Group. The information contained herein has not been
independently verified. No representation or warranty, express or implied, is made as to,
and no reliance should be placed on, the fairness, accuracy, completeness or correctness
of the information or opinions contained herein. None of the company, its affiliates, or its
representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising from any use of this document or its contents or otherwise arising in
connection with this document.
This document includes forward-looking statements. These forward-looking statements
express current expectations and projections about future events, involve predictions and
are subject to a number of factors that may influence the accuracy of the statements and
the projections upon which the statements are based. Prospective investors are cautioned
not to place undue reliance on these forward-looking statements because they involve
known and unknown risks, uncertainties and other factors which are, in many cases,
beyond our control. In light of these risks, uncertainties, and assumptions, the forwardlooking
events discussed in this document might not occur and no assurance can be given
that the anticipated results will be achieved. Actual events or results may differ materially
as a results of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks
and uncertainties include, but are not limited to increased competition and regulatory,
legislative and judicial developments that could cause actual results to vary materially from
future results indicated, expressed or implied in such forward-looking statements.
Moreover, any statements regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the future.
This document does not constitute an offer or invitation to purchase or subscribe for any
shares and no part of it shall form the basis of or be relied upon in connection with any
contract or commitment whatsoever.
By accepting this document, you agree to the foregoing.
1

Contents
Section 1. Fiera Milano – An Overview
Section 2. Key Operational & Financial Strengths
Section 3. Financial Highlights
Section 4. Outlook for the Full Year as at June 30 th , 2007
Appendix. Q1 2007 Financial Results
2

Section 1
Fiera Milano - An Overview

Fiera Milano – An Overview
Key figures (average of last 3 FYs)
Net square metres rented out: ~ 1.7 million
N. of exhibitions hosted per year: 78
N. of exhibitors: ~ 29,500
The Group is
the leading
operator in
Italy and one
of the leading
operators in
Europe in the
trade show
and exhibition
industry
Fiera Milano – An Overview
4

Industry Structure
Venue Owner
Venues
& Related
Services
(VRS)
Space + Related
Services
Facility
Manager
Value Added
Services
(VAS)
Value Added Services
Exhibition
& Congress
Organisation
(ECO)
Organisers Exhibitors Visitors
Space rented out
Commercial Relationship
Value Added Services (i.e. Stand Fittings, Catering, Publishing…)
Fiera Milano – An Overview
5

A Fully Integrated Business Model
FY05 and FY06 breakdown of Sales (before I/C adjustments) and Gross
Operating Margin (GOM) is represented below:
FY ends
June 30 th
FY05
€331m €34m
FY06
€477m €60m
36%
41%
37%
45%
24%
21%
23%
13%
40%
38%
40%
43%
-1%
Sales before I/C adj.
GOM
Sales before I/C adj.
GOM
VRS VAS ECO I/C adj.
Fiera Milano – An Overview
6
(Data are in accordance with IAS/IFRS)

Section 2
Key Operational &
Financial Strengths

A Leader in an Industry with High Entry Barriers
Fiera Milano is a
market leader in an
industry with high entry
barriers.
The physical size of its
exhibition sites is
almost unrivalled:
-the largest in Italy
-the 2 nd largest in the
World
(only 5% smaller than the 1 st )
First 3 Exhibition Sites
in Italy
Gross Indoor
Capacity (Sq.metres)
1 Fiera Milano (Two venues) 470,000
2 Bologna 180,000
3 Verona 122,000
First 10 Exhibition Sites
in the World
Gross Indoor
Capacity (Sq.metres)
1 Hanover 495,000
2 Fiera Milano (Two venues) 470,000
3 Frankfurt 322,000
4 Cologne 284,000
5 Paris-Nord (Villepinte+Le Bourget) 270,000
6 Dusseldorf 252,000
7 Valencia 231,000
8 Barcelona (Montjuic+Gran Vià M2) 229,000
9 Paris Expo 227,000
10 Chicago 204,000
Source: Auma, 2006 and exhibition sites’ websites
Key Operational Strengths
8

New Exhibition Site (rounded off figures in sq. metres)
Gross indoor capacity has increased by 35%
TODAY
TWO VENUES
470,000
+ 60,000 outdoor
+35%
YESTERDAY
ONE VENUE
348,000
125,000
Dismissed
Area
+
345,000
+ 60,000 outdoor
Key Operational Strengths
9

The first in Europe for space sold
Below it is shown the average amount of net sq. metres rented out for international
events in the first 10 exhibition sites in Europe - based on available data
Fiera Milano ranked first in Europe for net sq. metres rented out
Paris data are the sum of different exhibition sites
Fiera Milano is n.1 for space sold
1,512,175
1,454,406
1,234,587
1,106,094
986,381
901,036
770,797
727,178
582,258
438,334
Fiera Milano
Paris
Frankfurt
Dusseldorf
Hanover
Cologne
Bologna
Madrid
Barcelona
Valencia
Source: Cermes Bocconi, 2003
Key Operational Strengths
10
(Data based on average net sq. metres rented out in 2002-2003)

In a sector with a low Sensitivity to the Economic Cycle
Although demand for exhibition space can be influenced by economic
conditions, the exhibition industry is less cyclical than others, more prone
to the fluctuation of demand for advertising and promotional services
Economic sensitivity of trade shows and exhibitions is significantly lower
than that of the advertising business
Main reasons
The decision to participate is taken long time before the event,
especially for long-term biennial events
Participation to exhibitions is a vital tool to contact and communicate
with clients (not a mere promotional expense), providing resilience to
economic downturn (this is particularly evident for small and medium
companies)
Large exhibition centres with a diversified portfolio are less vulnerable to
market downturns as their performance is not linked to few sectors
Key Operational Strengths
11

A highly diversified exhibition portfolio
Fiera Milano’s exhibitions feature a well – diversified industry mix
Food - Catering
0.7%
Vehicles and related equipments
9.7%
Building and related furniture
7.8%
Furniture and furnishing
12.4%
Antiques and crafted products
3.5%
Sport - Leisure
4.6%
Health and Environment
2.5%
Homeware and gifts
13.9%
Chemistry
0.6%
Textiles, clothing & accessories
18.4%
Industrial machinery
16.5%
Commerce - Services
8.1%
Communication & Office
1.4%
Key Operational Strengths
12
(Data based on net sq. metres rented out in FY06)

Exhibition Portfolio - International and B2B
5%
12%
International exhibitions feature
> 15% Foreign Exhibitors or
> 8% Foreign Visitors or
> 4% Extra EU Visitors
International Exhibitions
95%
Local and Regional Exhibitions
B2B
B2C
88%
International Exhibitions are B2B Events
Key Operational Strengths
13
(Data based on net sq. metres rented out in FY06)

Favourable Payment Cycle
Main financial features of the contractual agreements with organisers are:
standard contracts guarantee (minimum guaranteed)
significant advance payments
treasury management service to organisers
Advance Payments
(minus FM fees)
FM SPA
Organisers
Advance payments
12 months for biennial)
Invoice
Exhibitors
Commercial relationship
(on avg. 6 months for annual,
Key Financial Strengths
14

Negative Net Working Capital
The Group features a structurally negative NWC
(Data in €m)
FY05
after taxes
Q106
before taxes
Q206
before taxes
Q306
before taxes
FY06
after taxes
Q107
before taxes
-43.4
-69.5
-66.8
-71.5 -73.4
-87.7
FY ends
June 30 th
Capital–redemption Insurance Policies, (previously classified as Working Capital under Italian GAAP) are recognized as
current financial assets and included in the Net Financial Position under IAS/IFRS
Key Financial Strengths
15
(Data are in accordance with IAS/IFRS)

Section 3
Financial Highlights

Net Sq. Metres rented out – Frequency (rounded off data)
(Data in ‘000)
1,648.5 1,632.7 1,704.8 1,373.9 2,011.3
179.9
14.7
540.3
191.7
366.9
144.2
504.8
8.1
305.8
609.3
1,093.5
1,074.1
1,055.8
1,060.0
1,222.1
FY02 FY03 FY04 FY05 FY06
Annual Biennial Multiannual
Financial Highlights
17

Net Sq. Metres rented out – Directly Organised vs. Hosted Exhibitions
(Data in ’000)
1,648.5 1,632.7 1,704.8 1,373.9 2,011.3
31%
22%
30%
43%
42%
69%
78%
70%
57%
58%
FY02 FY03 FY04 FY05 FY06
% net sq. metres organised by 3rd parties % net sq. metres directly organised
Financial Highlights
18

Consolidated Revenues
(Data in €m)
FY ends
June 30 th
375.0
291.6 261.7
175.7
219.1
116.9
119.8
108.9
141.4
54.7
78.5
141.4
174.7
226.8
132.5
192.1
0
(10.3)
(52.1)
(69.1)
(101.7)
FY02 FY03 FY04 FY05 FY06
IT GAAP
IT GAAP IT GAAP IFRS
IFRS
Financial Highlights
VRS+VAS VRS VAS ECO I/C Adjustments
19

Consolidated Gross Operating Margin
(Data in €m)
19.5%
FY ends
June 30 th
16.3%
16.0%
13.8%
56.8
13.0%
59.9
35.8
22.4
34.1
26.7
19.4
8.9
14.0
8.0
26.9
34.4
7.3
25.8
19.4
12.8
(0.5)
Financial Highlights
FY02 FY03 FY04 FY05 FY06
IT GAAP
IT GAAP IT GAAP IFRS
IFRS
VRS+VAS VRS VAS ECO I/C Adjustments MARGIN %
20

Consolidated Net Operating Margin
(Data in €m)
FY ends
June 30 th
12.1%
11.4%
42.8
8.2%
8.7%
35.3
8.4%
23.7
19.2
17.9
21.9
0.8
11.7
4.9
11.3
11.7
14.3
17.4
1.5
9.1
18.2
0.1
FY02 FY03 FY04 FY05 FY06
IT GAAP
IT GAAP IT GAAP IFRS
IFRS
VRS+VAS VRS VAS ECO I/C Adjustments MARGIN %
Financial Highlights
21

Section 4
Outlook for the Full Year
as at June 30 th , 2007

Outlook for FY07
The exhibition agenda for the current year is affected by the seasonality that
characterises “odd-numbered” years
Thus far, forecasts indicate that total net exhibition space should be between 1.6
and 1.7 million square metres
The Group is strongly involved in setting up three new exhibitions related to
industries which are currently not included in its portfolio: construction, food and
health
These exhibitions shall be held in the second half of the financial year
The full rent for the new site in Rho will be paid this financial year for the first time
ever
Outlook for FY07
23

Appendix
Q1 2007 Financial Results

Q1 07 Results - Highlights
Q1 07 feels the effect of the summer break – as usual
No exhibitions in July and August
but features intensive exhibition activity in September
320,400 net sq. metres occupied (+22.4% YoY) due to:
285,330 net sq. metres for annual exhibitions (+9% YoY)
biennial exhibitions (Bias & Fluidtrans): 35,070 net sq. metres in total
Fashion shows brought forward from October to September
Consolidated revenues at €60.3m vs. €51.1m in Q1 06 (+17.9% YoY)
Negative Gross Operating Margin (GOM) of €3.6m, but improved vs. Q1 06 loss of €4.4m
positive performance (GOM of +€163K against a loss of €1m in Q1 06) of stand fitting
companies (VAS segment)
higher exhibition margins offsetting ∼€4.3m rent increase for the 2 exhibition sites for
the parent company (VRS segment)
Negative Net Operating Margin of €7.9m vs. a loss of €7.1m in Q1 06 due to
higher depreciations (up to €4.3m from €2.8m in Q1 06) related to expenditure for the new
Rho exhibition site + new IT system
Pre-tax Loss of €8m vs. a loss of €6.9m in Q1 06
Q1 2007 Financial Results
25

Q1 07 Consolidated Figures
FY ends
June 30 th
Profit & Loss (€'000) Q1 06 Q1 07
Change (%)
Net Consolidated Revenues 51,132 60,293
17.9%
Gross Operating Margin (GOM) (4,381) (3,633)
-17.1%
GOM margin (%) -8.6%
-6.0%
Net Operating Margin (NOM) (7,151) (7,941)
11.0%
NOM margin (%) -14.0%
-13.2%
Pre-tax profit/(loss) (6,955) (8,006)
15.1%
Pre-tax profit/(loss) margin (%) -13.6%
-13.3%
Group's pre-tax profit/(loss) (5,400) (6,973)
29.1%
Group's pre-tax profit/(loss) margin (%) -10.6%
-11.6%
Minorities' pre-tax profit/(loss) (1,555) (1,033)
-33.6%
Minorities' pre-tax profit/(loss) margin (%) -3.0%
-1.7%
Q1 2007 Financial Results
26

Q1 07 Financial Breakdown
FY ends
June 30 th
Q1 06 Q1 07 Change (%)
Total net sqm rented out 261,800 (*) 320,400 22.4%
of which organised by 3rd parties 149,500 (*) 194,550
of which directly organised 112,300 125,850
Revenues (€'000) 51,132 60,293 17.9%
VRS 24,787 32,043
VAS 19,125 18,900
ECO 21,659 28,644
Adjustment for transactions between business segments (14,439) (19,294)
Gross Operating Margin (€'000) (4,381) (3,633) -17.1%
% on revenues -8.6% -6.0%
VRS (3,180) (3,394)
% on revenues -12.8% -10.6%
VAS (1,010) 163
% on revenues -5.3% 0.9%
ECO (191) (512)
% on revenues -0.9% -1.8%
Adjustment for transactions between business segments - 110
Net Operating Margin (€'000) (7,151) (7,941) 11.0%
% on revenues -14.0% -13.2%
VRS (3,861) (5,474)
% on revenues -15.6% -17.1%
VAS (2,585) (1,502)
% on revenues -13.5% -7.9%
ECO (705) (1,373)
% on revenues -3.3% -4.8%
Adjustment for transactions between business segments - 408
Q1 2007 Financial Results
(*) Figures adjusted due to the final closure of statements of accounts for exhibitions and congresses
27

Consolidated Balance Sheet
FY ends
June 30 th
Balance Sheet (€'000) FY 06 Q1 07
after taxes
before taxes
Non-current assets 211,053 213,635
Net working capital (71,529) (73,443)
Gross capital employed 139,524 140,192
Non-current liabilities (32,554) (32,675)
Net capital employed 106,970 107,517
Shareholders' equity 143,588 135,774
Net financial position (cash) (*) (36,618) (28,257)
(*) NFP includes short-term cash investments made with premier insurance companies classified as current financial assets
Q1 2007 Financial Results
28

FY ends
June 30 th
Consolidated Net Financial Position
Consolidated Net Financial Position (€'000) FY 06 Q1 07
Cash 15,059 27,190
Other cash equivalents - -
Securities held for trading - -
Cash & cash equivalents 15,059 27,190
Current financial assets (*) 70,072 71,768
Current bank borrowings 13,436 36,572
Current portion of non-current debt 8,177 6,883
Other current financial liabilities 4,315 5,020
Current financial debt 25,928 48,475
Current net financial debt (cash) (59,203) (50,483)
Non-current bank borrowings 22,285 21,962
Debt securities on issue - -
Other non-current (receivables)/liabilities 300 264
Non-current net financial debt (cash) 22,585 22,226
Net financial debt (cash) (36,618) (28,257)
(*) They include short-term cash investments made with premier insurance companies
Q1 2007 Financial Results
29

For further information, please contact:
IR Department
Fiera Milano SpA
Strada Statale del Sempione, 28
20017 Rho (Milano) - ITALY
Tel: + 39 02 4997.7816/7911
E-mail: investor.relations@fieramilano.it
www.fieramilano.it