In the future of Fiera Milano there is an expansion plan that moves along two directions: organic growth through a strengthening of the exhibition portfolio and physical and digital services and entry into the entertainment business, and growth through external lines , with the ambition of making acquisitions not only in Italy but also abroad. “The ambition that we declare today in our plan is to scale and become one of the top five European operators” (from the current ninth place), stated the CEO, Francesco Conci, opening the presentation of the 2024-2027 strategic plan in small Gerolamo theater, in Piazza Beccaria in Milan, which saw the presence (in the audience) of president Carlo Bonomi. The common thread of this growth plan is the integrated sustainability of the business as a lever for development and competitive advantage at an international level.
In economic terms, revenues are expected in 2027 in a range between 355 and 375 million euros from 283.3 in 2023, with an Ebitda estimated between 120 and 130 million euros (from 97 in 2023). “Starting from 2025 we intend to position ourselves steadily above 300 million in revenues – explained the CFO, Massimo De Tullio – Between 284 million in 2023 and the expected range of 355-375 in 2027, the expected CAGR is 7%, a growth decidedly higher than that of the Italian exhibition industry expected in 2019-25 of the order of 2%”.
The expansion plan provides, in detail, a strengthening of the exhibition portfolio, with three new fairs by 2027, one of which will soon be held in the sector of technologies and solutions for the decarbonisation of industrial processes and the others “in the healthy, longevity, artificial intelligence, all themes that see man at the centre.” But also the attraction of two international traveling fairs in Milan, important “for the related industries and the volumes they move”. Alongside this, the development of the entertainment business is planned with the aim of starting at least 15 outdoor events every year and around 30 indoor events in 2027, leading the sector to account for 1% of the overall turnover at the end of the plan. In parallel, Fiera Milano aims to become an integrated service provider with both a physical and digital offering which at the end of the plan will lead the sector to account for 29% of total turnover (from 28th 2023, with a CAGR of 6.8% ).
The turnover growth included in the plan (in absolute value between 71 and 91 million euros compared to last year), explained the CFO, “is mainly organic while the inorganic component within the turnover growth is worth around 15- 16% and is linked to the M&A operation that is in the pipeline.” The operation for which there is “a letter of intent and due diligence activities underway” concerns a stand-fitting services company not only in the exhibition sector and should be completed by the end of the year.
But this is only the first operation. In fact, solid cash generation is expected over the plan period, with overall financial availability expected between 151 and 171 million euros over the plan period. Of these, at least 40 million euros will go to shareholders in dividends (10 million per year starting from this), while the remaining liquidity, quantified between 111 and 131 million euros, will be directed to supporting company growth through external lines . “An important scouting activity has already begun – said De Tullio – The M&A operations are important because they are the ones that will guarantee us not only a further change of scale compared to that which will allow organic growth but also to set in motion an exponential mechanism. We are looking at leading event organizers who may be in Italy or abroad and above all we are looking at the acquisition of controlling shares. We do not want organizers with a static portfolio while the geographical areas we are interested in will be the most important ones for the exhibition sector, therefore Europe and the USA and those with the highest growth potential, in particular the Gulf and Saudi Arabia”. In this regard, the company specified that a “further use of debt to finance potential strategic acquisitions” is not excluded. Furthermore, over the course of the plan, total investments of 88 million euros are planned, of which 35 million euros will be supported by the Fiera Milano Foundation for the development of infrastructure works.
