2016 Annual Press Conference by the NürnbergMesse Group

Statement by Peter Ottmann, CEO NürnbergMesse Group

Ladies and gentlemen,

In July, within the framework of the Annual Results Press Conference, we had spoken of the “NürnbergMesse value-added”. In relation to our events, the economic effects and the company itself. This continues to remain the core of our activities – what drives us forward. And, as a result, the NürnbergMesse value-added in its various facets will also be the subject here today.

To this day, we have all jointly increased this value-added. Because 2016 was for us the record year, which really exceeds all dimensions! It is really a bit like on Christmas Eve: we had expected it, no doubt. It is then all the nicer when you see how predictions become reality. And our ambitious assumptions were even surpassed once again. So here now our probable summary of the 2016 event year for the NürnbergMesse Group:
–Firstly: we will attain a new record level of turnover and, according to current calculations, achieve “275 million Euro plus X”. Our financial department is already working hard on calculating the extent of X, but the result is certain: record turnover for NürnbergMesse!
–Secondly: our event portfolio is a potential record-breaker and represents the stable basis of our success – the best example: for the first time the exhibitor stand space has exceeded 1,000.000 m² in one year.
–Thirdly: our events are consolidating their position worldwide. For the first time, the number of our exhibitors has exceeded the 30,000 threshold – and has indeed clearly done so with over 32,000.
–And fourthly: the world comes together here with us. Because there are also new record figures as far as the international share of exhibitors and visitors for the NürnbergMesse Group is concerned. We have never been more international with our events!

These four record figures are the quintessence of our 2016 event year, which even here, with a total of 172 events, just missed out on another superlative (2013: 174). In this connection, incidentally, our growth rates are also sparkling: in terms of “exhibitors”, “trade visitors” and “exhibition space”, we are currently growing at four percent in the international and national trade fair and exhibition segment.

Following on from this, we will now present to you what the individual reasons for this were, which themes will be coming soon and how things will continue for NürnbergMesse in the coming years. Voilà:

Let's first start with the selection of events at our home base, in other words here in Nuremberg: when we take a look at the 15 international trade fairs and exhibitions held this year – in other words EUROGUSS, BIOFACH and VIVANESS, embedded world, Enforce Tac, IWA Outdoor Classics, FENSTERBAU FRONTALE and HOLZ-HANDWERK, POWTECH, Interzoo, GaLaBau, FachPack, Chillventa, it-sa and BrauBeviale – then it becomes apparent: the concepts of the individual events are so closely tailored to the customers and the market, that in each case we ensure sustainable sector relevance. At the end of the day, at our trade fairs and exhibitions, we bring together the clientele, which in “marketing jargon” is always so soberly described as “decision-makers”. But for us, our customers are more than that – they are the decisive barometer showing us where we are currently at and how things will continue from here. That is why we are cultivating this dialogue intensively, because particularly in these times of increasing digitization in business processes, we are convinced: only when we present the “Number 1 or 2” event for the respective community, will we also have the “raison d’etre” permanently. And we are really doing everything to achieve this!

Strategically, we will place exactly this concept at the forefront of our activities and measures and in future position our trade fairs and exhibitions even more strongly in the form of product families. What does that mean? We can use two examples to clearly illustrate this:

BrauBeviale is the beverage industry’s equipment show in Nuremberg. It is so to speak the mother of our new “Beviale family”, which also has other offshoots in Moscow, Shanghai and soon Milan, too.

Second example: the “BIOFACH family”. In Nuremberg, the World’s Leading Trade Fair for Organic Food and long established – next year incidentally with “Germany as the Country of the Year” – and worldwide with numerous successful export variations, be it India, China or Japan, be it in the USA or Brazil.

This product family strategy offers numerous opportunities for our strategic customers, because they appreciate us due to our leading trade fairs and exhibitions in Nuremberg. With this “Line Extension”, we are ensuring a high degree of “recognition” and opening up the respective markets directly through our sales and marketing platforms locally. I'm certain that in future there will be further product families under the NürnbergMesse umbrella, because this internationalization strategy is very well accepted by our customers and very successful in practical application.

In the national trade fairs and exhibitions category, we are delighted with Perimeter Protection and FeuerTRUTZ. The latter has even reached the stage where we are concerning ourselves with the “Line Extension” theme. But we will be pleased to tell you even more about this later, when we will be talking mainly about the FSIE!

We can also present an all-round positive summary for the guest events and NürnbergConvention. The best example of this: tomorrow with RETRO CLASSICS BAVARIA there will even be another premiere – and what a premiere! This new format is opening in no less than four exhibition halls and thus graphically underlining how mature Nuremberg is for the “Vintage and Classic” theme.

And in terms of content, this, particularly in times of records for NürnbergMesse, is the deep forward pass also enabling us to “stay on the ball” as a successful exhibition company. That is why particularly due to these successes, we have launched an innovation and investment offensive of a new dimension which will secure the lasting success of NürnbergMesse – and in the best case even help to further extend it.

Statement by Dr. Roland Fleck, CEO NürnbergMesse Group

We could also sum up this offensive with the handy “10+1” formula – because in 2017, it will be a matter of ten new event themes and the mega theme of “Investments in the exhibition centre”.

So with that let us proceed to the ten new events which we will now be successively rolling out:

In Nuremberg, we will be starting in 2017 for the first time with MT-Connect, the new medical technology fair, which right from the start has been devised hand-in-hand with sector connoisseurs and interdisciplinary experts. It is an outstanding example of how a relevant new trade fair theme can be created from a congress, the MedTech Summit, highly regarded in the sector, and a strong trade partner, the Forum MedTech Pharma. As a result, in our view, this has led to the creation of the ideal meeting point – in the best possible regional location in Medical Valley – for players from the suppliers’ and contractors’ sectors in the medical technology field, from research and development, industry and medicine along with associations and politicians. So please make a note already of 21 and 22 June 2017 in the calendar for MT-Connect!

In addition, on 2 and 3 March 2017, we will be addressing the currently hotly-discussed issue of “drones”. “U.T.SEC – Unmanned Technologies & Security Expo and Conference – the trade fair for security by and against unmanned technologies” is the official title and, in terms of contents, everything at the exhibition centre will then be completely focused on the technical and legal aspects involving the use of and defence against drones and similar airborne devices. Exciting synergies are guaranteed because U.T.SEC is being held in combination with the IWA OutdoorClassics and Enforce Tac trade fairs, where a total of over 1,600 exhibitors and 50,000 trade visitors are expected.

This new “Nuremberg event trio” is rounded off by Net.Law.S – the conference for legal affairs, society and industry in the digital world. The new format will be mainly scientifically supported by Professor Hilgendorf from the RobotRecht research department at the University of Würzburg. In terms of contents, Net.Law.S is thus closing the gap, which has previously hardly been covered by the Internet of Things or global digitization – namely the entire spectrum, starting with the opportunities presented by Industry 4.0, E-Health and Smart Mobility and ending with questions such as “Who is actually responsible?” or “Who accepts liability in an emergency scenario?”. We are definitely already looking forward to the start of Net.Law.S on 21 and 22 February here at the exhibition centre.

So much for the theme of “new events in Nuremberg”. More than two thirds of the new features and developments will however be happening for us abroad in 2017. Here, therefore the compact overview of our new international themes for you:

In Brazil, in João Picolo, there is not only a new, committed Managing Director at our subsidiary, but at the same time also three new event themes. A week ago we presented this trio to Brazilian journalists and received predominantly positive feedback. Specifically this means:
–In 2017, we will be organizing the “Brasil Cycle Fair” in São Paulo and thus the largest event in Central and Southern America on the “bicycle” theme. 200 million inhabitants want to get out and about – and that means that each year in Brazil around four and a half million new bicycles are purchased – the bicycle is thus definitely also an interesting economic factor.
–In addition, we will once again be devoting ourselves to the “pets” theme – and in actual fact under the “American Winner” title, the largest event in Northern, Central and Southern America for cats – you could almost say “Brazil’s search for the super cat”! Pets are enormously important in Brazil and here we see clear synergies with our existing event “PET South America”.
–And thirdly: The URB Trade Show – URB for short – which has been in existence since 2013, has now developed into the relevant platform for all things skaters, streetwear and sneakers. Here, in 2017, we will for the first time assume management of the event and, as a result, not only address trend themes, but at the same time, also offer something exciting for the sixth largest textile producer worldwide and the rapidly developing fashion sector in Brazil.

Last week, we felt it once again in Brazil: after the blues of recent years, the country is urgently longing for the end of the economic slump and looking at our Brazilian subsidiary, we are definitely more positive here than just one year ago! The three new themes are making a considerable contribution to this.

From South America we will take a leap to Asia. Our subsidiary in India is developing splendidly and recently we announced in Mumbai: “Light, cameras, action”. What we mean by that is the acquisition of Broadcast India Show. As a new own event, it is strengthening not only the position of NürnbergMesse India as a whole, but in particular, as the technical “feeder fair for Bollywood”, offers considerable potential, particularly as far as the international opening of the industry is concerned. As for India, we are on a very good course and are sure that there will continue to be positive growth opportunities here!

In addition, we have something in the event of fire – namely “FIRE & SECURITY INDIA EXPO”: from 23 to 25 February 2017, for the first time, FIRE & SECURITY INDIA EXPO, in Greater Noida, Delhi, will be held. The fair is taking place parallel to the ACREX India and FENSTERBAU FRONTALE INDIA trade fairs and, as a result, is switching annually between the Delhi, Bangalore and Mumbai locations. The FIRE& SECURITY INDIA EXPO is being jointly staged with the Indian “FIRE AND SECURITY ASSOCIATION OF INDIA” and is thematically based on FeuerTRUTZ held in Nuremberg and also partially on Perimeter Protection.

With the focus on new trade fair and exhibition themes, let us remain in Asia and take a look towards China. There, in a few weeks, we will be celebrating the 10th anniversary of our subsidiary in Shanghai and – we can reveal this much to you now: there is more positive news to bring you. In this connection, we would also like to warmly welcome our Managing Director in China, Darren Guo. He has been in charge of our up-and-coming Asian subsidiary since March 2015 and with a high level of commitment, sparkling ideas and that necessary little bit of luck, has brought fresh impetus to the company. His latest creation is “Greenery & Landscaping China”, sister event of the successful GaLaBau in Nuremberg. Together with partner SLAGTA (Shanghai Landscape Architecture and Gardening Trade Association), it is our aim to get the flowers blooming from 7 to 9 June 2017 in Shanghai. All other news about China will then follow in March 2017!

So, and after this small trip around the world, back to Europe – to be more exact, to “Bella Italia”: our colleagues in Milan have been doing a fantastic job for years and have made a considerable contribution to ensuring that Italy is the number one exhibitor nation at the exhibition centre Nuremberg. It was however always a great wish of Managing Director Stefania Calcaterra to at some stage also hold an own event locally. Now her wish is being fulfilled – and it answers to the name “Craft Beer Italy”. With our partners Doemens and VLB, for the first time on 22 and 23 November 2017, at the Talent Garden Milano Calabiana, we will be bringing together the interested trade clientele connected with the “Craft Beer” theme – starting with raw materials and technologies right up to logistics solutions or marketing ideas for the beverage sector. There is no denying that in terms of the event’s contents, there are certain parallels to BrauBeviale. We are looking forward to this premiere in Milan!

At the beginning we had indeed spoken about the “10+1” success formula. These ten new events are sending out a clear signal to the market that with this innovation offensive NürnbergMesse is offering value-added in the form of new event formats and thus continuing the growth course already embarked upon.

But the truth also means that it is not always simply new additions, but that it only makes good sense when value-added is also generated in terms of quality. That is why we have been conducting active portfolio management for five years; which has resulted in events also being removed from the program. What is decisive for us here in this connection is a look at the balance – and in this case, after half a decade, it looks a bit like a handball game with a score of 22:7 and this is – similar to our neighbours, who as we know, play in the ARENA handball Bundesliga – simply a good sign.

With this innovation offensive in the form of new events, we are laying down a foundation for the further growth of the company: only when we repeatedly renew our trade fair and exhibition portfolio, can we achieve record years such as 2016. Over 275 million Euro turnover is a clear signal! But: in addition to “innovations”, “investments” are also absolutely essential in order to keep NürnbergMesse on a successful course:

Because with our “10+1” success formula, the “1” stands for the mega theme of “investments in the exhibition centre”. It is possible that while travelling to today's press conference you may have seen construction cranes and towering mounds of sand? At the end of the day, it is clear: the new Hall 3C is currently on schedule and on budget and we are optimistic about being able to officially commission it as planned in autumn 2018. But until then there is still a great deal of work ahead of us.

As we know, between today and the completion of Hall 3C in autumn 2018, 2017 lies before us. And this year – perhaps particularly due to the record-breaking year of 2016 – poses an additional challenge for us. Why? Anyone who is involved with trade fairs and exhibitions knows that a trade fair rotation is always based on the innovation cycles of the respective sector. Similar to waves in the water they overlap each other – or they do not. The latter is unfortunately the case every twelve years and similar to the situation that last occurred in 2005 or will occur again next time in 2029, in 2017 a large number of our major international trade fairs and exhibitions in Nuremberg will be taking a scheduled break for one financial year. This particularly affects the second half of 2017, because for example three key autumn events alone will not be taking place. In 2017, we will in other words be well below the turnover level of 2015. All this has however been planned in the long-term and to that extent is not surprising.

In 2018, all the international trade fairs and exhibitions will then take place once again as scheduled. Internally we are therefore talking about the “planned V” constellation in relation to the 2016 to 2018 financial years. That means: following the record year of 2016, it is now necessary in economic and business terms to cross a valley, before in 2018, once again as planned – we will be well above the highly symbolic mark of a quarter of a billion Euro turnover.

But now we are firstly closing what has by far been the most successful year in our corporate history and doing so with sparkling success figures:
–For the first time in the company's history over one quarter of a billion Euro turnover.
–For the first time in the company’s history over 1 million net square metres of rented exhibition space.
–For the first time in the company’s history more than 30,000 exhibitors.
–And with new record figures for the international exhibitors and visitors – here too this is unparalleled in our company’s history.

In a few weeks’ time, 2017 will begin and we are expecting an exciting business year in another sense: with ten new event formats, progress on the construction of Hall 3C and, at the same time, continually increasing internationalization – in Nuremberg among the exhibitors and visitors, globally through our events. What the 2017 advent calendar will then have in store, we will be pleased to reveal to you in twelve months’ time.

Before then we wish you and your families a peaceful, reflective holiday period, many thanks for the trust and cooperation this year and all the best for 2017!


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