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12-Dec-2014

For the fifth year in a row, no subsidies are needed

CEO Klaus Dittrich: "Trade-fair business in Munich is growing faster than the overall German market."


For the fifth year in a row, Messe München International will do without subsidies from its two main shareholders again in 2014. The State of Bavaria and the City of Munich will receive the company's profits as interest on their shareholder loans. "All of our events performed considerably better than planned. Trade-fair business in Munich is growing faster than the overall German market," explains Klaus Dittrich, Chairman and CEO of the company. "That shows the enormous potential that our company, Messe München, has to offer."

The facts:
According to projections, sales for the year 2014 will be EUR 220.1 million, which is EUR 5.3 million more than planned. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 40.4 million, or EUR 6.2 million more than planned. At the same time, Messe München pays some EUR 50 million per year in interest and principal repayments for the first phase of construction at the new trade-fair center.

Compared to other trade-fair organizers in Germany, once again the Munich-based company grew at a faster rate (source: AUMA): According to initial projections, the number of exhibitors and visitors nationwide increased by one percent, while the amount of exhibition space remained fairly constant. In Munich, the number of exhibitors was up by four percent, visitors were up by five percent, and exhibition space increased by three percent.

"Our trade fairs in Munich are running exceptionally well, and the Internationale Congresszentrum ICM and the MOC in Freimann were well booked," explains Klaus Dittrich. All in all, Messe München hosted 215 events this year with more than 1,789,000 visitors and nearly 32,800 exhibitors. Besides all the guest events in Munich, Messe München held 13 of its own trade fairs.

"Munich is one of the leading destinations for conventions worldwide and is ranked in the top five in Europe," says Dr. Reinhard Pfeiffer, Deputy CEO. "In Germany, we are number two after Berlin."

The ICM – Internationales Congress Center München hosted 85 events with some 127,000 visitors, the MOC Veranstaltungscenter München had 97 events with 330,000 visitors, and 20 guest events with 600,000 visitors were held at the trade-fair center.

Highlights in 2014
Trade fairs: In January, ISPO MUNICH once again confirmed its role as the world's leading platform for the entire sports industry. In May, IFAT, the world's leading trade fair for environmental technologies that is held every two years, broke all its records. Nearly 40,000 visitors (previous event: 29,650) attended analytica in April. AUTOMATICA's numbers increased considerably with more than 39,000 visitors (up 32 percent) and 724 exhibitors (684). Once again, EXPO REAL in October lived up to its reputation as the International Trade Fair for Property and Investment. The highlight in November was electronica, which—like Messe München—celebrated its 50th anniversary.

Conventions and conferences: "We are especially popular among physicians," says Dr. Reinhard Pfeiffer. For example, the European Respiratory Society and its 20,000 participants came to Munich in September. The next major conference is the meeting of the European Association for the Study of Diabetes in 2016, where some 20,000 attendees are expected. After that, the largest cardiology congress in the world will take place in the Bavarian capital again in 2018.

International business: All in all, the company organized 18 of its own trade fairs in countries other than Germany. bauma China in Shanghai at the end of November was extremely successful. For the first time ever, the newly acquired Indian Ceramics was held under the direction of Messe München in February. Once again, ISPO BEIJING proved that it is the most important platform for sports business in Asia. It had 30,000 visitors and 627 exhibitors, breaking all previous records. The first food & drink technology Africa, which Messe München held in Johannesburg in March, was a big success. seismic safety in Istanbul, a newly developed trade fair for earthquake resistance, celebrated its premiere in April. The company also purchased a new trade fair, i.e. India Lab Expo. Klaus Dittrich: "As you can see, the company's performance around the world is outstanding."

Two new halls including a small additional conference center
To keep up with this dynamic growth and give our customers the best platform possible, Messe München plans to build two new halls including a small conference area. The cost: EUR 105 million. Once Halls C5 and C6 are completed, it will mark the end of the final phase of construction of the trade-fair center, which opened in 1998. "We will finance construction entirely on our own and without subsidies from our shareholders," says Klaus Dittrich.

Messe München started with twelve halls at the new trade-fair center in 1998. Four additional halls followed during subsequent years. Dittrich: "When we hold our large trade fairs such as bauma, BAU, IFAT and ISPO, all 16 halls are already booked to capacity."

Construction will begin after bauma in the summer of 2016 and is expected to take two years. Together, the two new halls will have 20,000 square meters of space. As a result, Messe München will have a total of 18 halls with 200,000 square meters of exhibition space as of 2018. Add to that 425,000 square meters of outdoor exhibition space.

A small conference center with extremely flexible room configurations for up to 2,000 people will be built at the northeastern end of both halls. Conferences and meetings are now an increasingly important part of trade fairs and exhibitions.

Changes to the Management Board
As of January 1, 2015, Messe München will tackle its latest challenges with a restructured Management Board. After nearly 30 years at Messe München, Managing Director Eugen Egetenmeir is retiring at the end of 2014.

Besides Chairman and CEO Klaus Dittrich, Deputy CEO Dr. Reinhard Pfeiffer and Deputy Managing Director Gerhard Gerritzen, starting January 1, Stefan Rummel, Falk Senger and Monika Dech will join the Management Board. Ms. Dech is the first woman to serve on the Management Board at Messe München and will be a Deputy Managing Director.

Klaus Dittrich: "As a result, we are starting off the new year in 2015 with fresh strength and full of optimism."

  • Monika Dech

  • Falk Senger

  • Stefan Rummel