FIERA MILANO APPROVES THE 2021-2025 STRATEGIC PLAN “CONN.E.C.T. 2025”
22/02/2021
STRATEGY
▪ Development activity focused on four strategic directions to become a leading European hub with an international presence:
- complementary and synergistic offer of traditional and digital services capable of enhancing the customer journey of exhibitors and visitors through a “phygital” experience and the development of a permanent information hub to support supply chain communities;
- strengthening of the portfolio of proprietary and third-party exhibitions;
- consolidation of leadership in the congress sector;
- attractiveness and safety of the exhibition and congress sites.
▪ Focus on sustainability as a tool for value creation for all Stakeholders.
▪ Solid enabling factors represented by the enhancement of human capital, a commercial and product approach aimed at excellence, digital transformation and major investments aimed at increasing the management efficiency and competitiveness of the sites.
ECONOMIC AND FINANCIAL TARGETS AT 2025
▪ In 2025, expected revenues in a range between Euro 290 and 310 million and EBITDA in a range between Euro 110 and 120 million, higher than the 2019 levels, despite a decrease in exhibition space (-12%) compared to 2019.
▪ Significant cash generation leading to net cash1 , estimated at between Euro 75 and 85 million at the end of the Plan, making it possible to evaluate M&A opportunities and shareholder remuneration.
▪ Investments of Euro 115-125 million are planned for the period, Euro 90-100 million of which are forecast to be made by the Fondazione Fiera Milano to improve the attractiveness and safety of the exhibition and congress sites.
ECONOMIC AND FINANCIAL TARGETS AT 2021
▪ The restart of onsite exhibitions in Q2 2021 is foreseen to generate a total yearly revenue of Euro 180-200 million, an EBITDA in a range of Euro 40 and 50 million and a net financial position1, between Euro 5 and -5 million. If, on the other hand, on site exhibitions do not start until September 2021, due to the prolonged pandemic, there would be a negative impact in terms of margins and net financial debt estimated at around Euro 5 million.
INCENTIVE PLAN (LTI) 2021-2022
▪ Approval of the guidelines of the new LTI Incentive Plan for executives with strategic responsibilities and other key managers to support the achievement of the Plan’s targets.
PRELIMINARY 2020 RESULTS
▪ Revenues of Euro 74 million, EBITDA of Euro 10.4 million and net financial debt1 of Euro 24 million.
EURO 20 MILLION LOAN FROM CASSA DEPOSITI E PRESTITI
▪ A five-year loan agreement for Euro 20 million with Cassa Depositi e Prestiti S.p.A., backed by SACE's "Garanzia Italia", was signed.