International sales continue to grow — outstanding profit ratio — ongoing growth expected in 2007

In 2006, Messe Frankfurt continued its stable course of growth both in Germany and abroad. “With record sales of EUR 406.1 million (2005: EUR 379 million), we even managed to slightly exceed our target,” remarked Michael von Zitzewitz, Chairman of the Board of Management, at the company's annual results press conference. Ongoing, sustainable growth at its Frankfurt location played a major role in this achievement. “Without expanding and modernising our successful home base, a successful international network would not be possible,” emphasised von Zitzewitz.
Messe Frankfurt's business abroad is a reliable factor in the positive financial results and has more than doubled in the past five years. In the most recent financial year, consolidated sales of EUR 88 million were achieved outside Germany, a new record high. This means business abroad accounted for 22 percent of the company's overall sales.

Highest profit in company history

Profit before income tax once again increased to EUR 48.2 million (2005: EUR 40.7 million). Annual net income reached EUR 27.5 million (2005: EUR 22.4 million), with a return on equity of 8.4 percent. Messe Frankfurt GmbH is the only German trade fair organiser to distribute profits to its shareholders, some EUR 13 million once again this year.

Operating profit on an EBITDA basis (earnings before interest, taxes, depreciation and amortization) is a strong indicator of profitability. This year Messe Frankfurt posted an EBITDA of EUR 102.3 million, the best results in the history of the company (2005: EUR 88.4 million). Cash flow reached EUR 76.1 million. Michael von Zitzewitz commented: “Strong cash flow is a key indicator of our internal financial strength, since as in the past, we are committed to financing our own investments without the assistance of our shareholders. By no means can this be taken for granted in the German exhibition industry.”

Strong performance of domestic and international events — record numbers of exhibitors — continued increase in international participation

In the 2006 financial year, Messe Frankfurt and its subsidiaries organised 110 fairs and exhibitions around the globe. Some 68,000 exhibitors and 2.7 million visitors were registered, with more than two million square metres of exhibition space being booked. An additional 226 conferences, conventions and other events took place in Frankfurt, attracting 492,000 visitors. Messe Frankfurt's events were attended by some 3.2 million visitors in total.

38 fairs were hosted at the Frankfurt exhibition grounds, including 19 events organised by Messe Frankfurt itself. These in-house events attracted some 25,200 exhibitors and 895,000 visitors. Approximately one million square metres of net exhibition space were booked.

An important hallmark of flagship fairs in Frankfurt, their high share of international exhibitors and visitors, once again improved. Michael von Zitzewitz emphasized that more than two-thirds of exhibitors at the Frankfurt exhibition site, some 70 percent, originate from outside Germany. “Nearly 50 percent of our foreign exhibitors come from Asia.” Germany remains the strongest exhibitor country by far, with 7,400 exhibitors and 428,000 square metres of exhibition space.

International visitors also play a key role in Frankfurt, according to von Zitzewitz: “40 percent of visitors to Messe Frankfurt's own events originate from abroad.” These figures make it clear how important internationalisation is for the Frankfurt location. The share of both international exhibitors and visitors is significantly higher than the average in the German exhibition industry.
In 2006, Messe Frankfurt witnessed record numbers of exhibitors and visitors at its 64 fairs abroad, including 13 new events. The number of exhibiting companies increased 9.7 percent to reach approximately 20,700. Visitor figures also improved to reach some 919,000 (2005: 915,000).

First international cooperation to organise a guest fair

Guest fairs are a permanent feature in Frankfurt. Following contract renewals for Achema and the Frankfurt Book Fair in 2006, the company is pleased to announce that Demat GmbH has extended the framework agreement for Euromold, Messe Frankfurt's fourth-largest guest fair, for another five years. “This represents a major achievement not only for us but for the entire Rhine-Main region as well, which will benefit from the high-calibre image, exhibitors and visitors of these fairs,” said von Zitzewitz. Messe Frankfurt and Demat GmbH also plan to cooperate abroad in the future. With the conceptual planning and sales assistance of Demat GmbH, Messe Frankfurt Hong Kong will stage Asiamold, the Chinese version of Euromold, from 27 to 29 September in Guangzhou.

Major progress in modernisation of Frankfurt exhibition grounds

Von Zitzewitz reported that site expansion and modernisation are proceeding according to plan. The largest construction project in the next two years involves the new Hall 11, with the laying of the foundation stone scheduled for mid-September. “The investment costs of EUR 170 million will come from our own funds,” explained the Chairman of the Board of Management. The hall and the associated new West entrance are scheduled to be completed in late May 2009. Contractors Max Bögl/Lausser will construct the complex of buildings, according to a design by the architectural offices of Hascher Jehle (Berlin).

Designed to meet the demands of modern logistics, the new Cargo Center will be opened to coincide with IAA 2007. The Emser Brücke bridge will be completed by the end of June, following some two-and-a-half years of construction. This bridge will allow direct access to the motorway. Costs for the ramp structure including a return loop and the new South Gate amount to EUR 12 million. Reconstruction work for the Festhalle will conclude in November 2007, approximately two years after its start.

2007 financial year off to a strong start with even more visitors and increased internationality

Michael von Zitzewitz was very positive about the first half of the current financial year: “We are pleased about higher numbers of visitors, an even greater share of international participants, and the debut of at least ten new events abroad planned to date.” Von Zitzewitz emphasised that Messe Frankfurt will continue to pursue the goal of stable, profitable and sustainable growth in the coming years. “In light of increasing international competition, success can only be achieved through economic strength, far-sighted planning, flexibility and innovations,” he concluded.

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