Record sales for MCH Group
22.03.11 08:41

- Operating income of CHF 368.3 million-record sales despite a difficult setting
- Group profit of CHF 37.4 million- above-average profit margin for the sector
- Expansion of products and services - a further strengthening of the group's market position

With operating income of CHF 368.3 million (2009: CHF 283.2 million), the MCH Group has posted a consolidated result for 2010 with an EBITDA of CHF 78.3 million (CHF 61.1 million) and a group profit of CHF 37.4 million (CHF 19.9 million). Investments totalling CHF 98.6 million (CHF 22.7 million) were made, of which CHF 81.6 million were for the new building project in Basel. The consolidated total assets at the end of the year under review are CHF 645.3 million, with borrowed capital of CHF 392.7 million and equity capital of CHF 252.6 million. The equity ratio is 39.1 %. The MCH Group's registered share price rose by 20.8% in the year under review, from CHF 39.50 to CHF 47.70.

The MCH Group is thus able to post a gratifying result for 2010, despite what are still difficult underlying conditions. It has achieved the highest income in the group's history. As was to be expected, the profit is somewhat below the exceptional record year of 2007 but has been stepped up considerably by comparison with the two previous years. The profit margin of 10.2% constitutes an outstanding value in an industry comparison.

This remarkable increase compared with the previous two years can be attributed to a range of factors: the strong market position of the MCH Group and its products and services; the expansion of the exhibition and infrastructure portfolio through the integration of Beaulieu Exploitation SA and Exhibit & More AG in the company group; the extremely busy exhibition schedule due to the individual exhibition rotas, including Swissbau, Holz and Ilmac; and, finally, the initial signs of an economic recovery. To take a look at the individual business fields:

MCH Exhibitions: the majority of MCH exhibitions - and particularly the internationally leading world shows of BASELWORLD, Art Basel and Art Basel Miami Beach - ran in a highly gratifying manner, demonstrating their key importance as industry platforms. A considerable amount of the increased income in this business field was due to the staging of exhibitions which are not scheduled for every year, plus the new activities in Lausanne. MCH Exhibitions boosted its income by 28% compared with the previous year, accounting for 72.0% of overall income in 2010.

MCH Infrastructure: the consequences of the crisis years are still being felt in the field of third-party events, and fewer and/or less elaborate events were held in the year under review. This business field too, however, is benefitting from the new location of Beaulieu Lausanne and accounted for 8.1% of overall income in 2010. Income in this business field was up 36% by comparison with the previous year.

MCH Event Services: a clear upward trend emerged in this business field, which was the one that was hardest hit and most directly affected by the consequences of the economic crisis. The economic recovery of the automotive industry and the financial sector, in particular, had a positive impact on the order volume for the service companies. This business field accounted for 19.9% of overall income, with its income rising by 35% compared with the previous year.


Expansion of business activity

One of the most significant results of the past year was the acquisition of a majority shareholding - currently of around 92% - in Beaulieu Exploitation SA. This key strategic move into Western Switzerland has created a high potential for expanding the group's range of products and services. It has already proved possible to implement initial initiatives in Lausanne on a tangible and successful basis - including the further development of the concept for Gastronomia, the re-launching of the Salon des Métiers et de la Formation along the same lines as the Career Choices Exhibition in Zurich and the complementing of IFAS and the Safety and Security fair through corresponding "sister events" in Lausanne.

In 2010, the MCH Group was involved in a total of 76 exhibitions - 37 MCH exhibitions and joint ventures, and also 39 guest events. It registered some 17,500 exhibiting companies and 2,185,000 visitors. Seventy-three of these exhibitions were held in Basel, Zurich and Lausanne. These three locations additionally hosted a further 750 events (congresses, exhibitions, general meetings, company events, concerts and musicals, etc.).


Strong market position

"The good result highlights our group's performance capability and the strong market position of our products and services", says CEO René Kamm in respect of the 2010 result. "The MCH Group currently holds a remarkable market position. This is the result of the successful implementation of the group's strategy over the past few years. Investments in the group's development, its infrastructure offerings and, in particular, in the further development of its products and services, are paying off." This should not, however, be allowed to conceal the fact that the economic situation still remains difficult, stresses René Kamm. "It is now a matter of maintaining our position on streamlined markets, which still constitutes a great challenge."


Motions to the General Meeting

The Board of Directors will submit a proposal to the General Meeting on 13 May 2011 for payment of a dividend of 5%.
In addition, the Board of Directors will submit a proposal to the General Meeting for Rolando Benedick, Heini Brugger and René C. Jäggi to be confirmed in office as members of the Board of Directors of MCH Group Ltd. for a further two years.

 
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