MCE - MOSTRA CONVEGNO EXPOCOMFORT 23-27 March 2010 Fiera

International Sales Force Convention MCE - MOSTRA CONVEGNO EXPOCOMFORT 23-27 March 2010 Fiera Milano Exhibition Centre Milan, 15 January 2009 Strictly confidential Strictly confidential MCE 2008 RESULTS The results of MCE 2008 confirms MCE’s international role: Numbers: 167,000 visitors, including 40,000 from abroad 157,000 net sqm occupied over the entire area of the new Fiera Milano Exhibition Centre 2,500 exhibitors, including 960 from abroad Trends: +17% Visitors from abroad, confirming MCE’s international vocation +3% companies visiting MCE 92% of visitors said to be satisfied with MCE 2008 2 Strictly confidential EXHIBITORS MCE 2008 RESULTS All the leading companies in the sector regularly attend MCE. 2500 companies, of which 960 from abroad, exhibited their products with a large rate of satisfaction: more than 70% of them confirmed their satisfaction with the business activity and with the number and quality of visitors met. The overall satisfaction rate is even higher than for MCE 2006. OVERALL SATISFACTION PARTICIPATION 2008 (N=403) 2006 (N=511) 2008 (N=403) FUTURE 2006 (N=511) Very satisfied Fairly satisfied Neither satisfied nor dissatisfied Fairly dissatisfied Very dissatisfied Tns Infratest source 16% 20% 61% 55% 11% 13% 8% 8% 4% 4% Certainly yes Probably yes Maybe, not sure Probably not Certainly not 3% 4% 1% 1% 14% 12% 32% 27% 50% 56% TOP 2 BOXES:   2008: 77% 2006: 75% TOP 2 BOXES:   2008: 82% 2006: 83% 3 Strictly confidential EXHIBITORS: CUSTOMER SATISFACTION Exhibitors: beyond 70% of satisfaction 80 70 60 50 40 30 20 10 0 77 73 71 77 1 Overall satisfaction: very + somewhat satisfied Against last edition: very + somewhat satisfied Number of visitors: very + somewhat satisfied Visitor credentials: very + somewhat satisfied 4 Strictly confidential VISITORS MCE 2008 RESULTS 2008 158.000 people + 9.000 returned visitors 167.000 visits 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 -1,76% 170,00 0 167,00 0 2006 2008 The increase in the number of international visitors (+17%) covered the light drop of the internal market, registering a total decrease of 1,76% 5 Strictly confidential VISITORS Mostra Convegno Expocomfort is targeted at Italian and foreign professionals; at major buyers, contractors, builders, distributors, architects, designers, engineers, health experts and showroom managers, who, in an international context, come into contact with classic products and design, traditional materials and eco-compatible ones and find out about market situations and new trends. 6 Strictly confidential VISITORS: CUSTOMER SATISFACTION Visitors are more and more satisfied with their visits to the show, thus the 93% has declared they will come back also for MCE 2010 90 80 70 60 50 40 30 20 10 0 92 86 85 1 Overall satisfaction: very + somewhat satisfied Against last edition: very + somewhat satisfied Amount of business conducted: very + somewhat satisfied 7 Strictly confidential VISITORS PROFILE MCE 2008 VISITORS STATISTICS 1. Installation / Maintenance 2. Buyer 37,53% 27,18% a. b. c. d. e. f. g. h. 3. a. b. c. d. e. 4. a. b. c. d. 5. 6. Buyer GDO Wholesalers Building Distribution Building Company / Contractor Manufacturer Pubblic Administration Hotellerie Professionals Professionals Architect Engineer Geometer Condominium Administrator Point of sale Point of sale Owner Show Room/Store Manager Counter Employee Agent University / School/ Research Institute 9,15% 1,26% 6,44% 0,05% 2,61% 6,73% 0,66% 0,26% 12,47% 2,06% 1,54% 7,22% 1,22% 0,44% 18,16% 9,64% 5,11% 1,70% 1,71% 3,28% 1,38% 8 Strictly confidential MCE PROFILE Mostra Convegno Expocomfort in its 37^ edition represents 50 years of history confirming it as the world’s most important event in the civil and industrial plant engineering. World leader, now more innovative than ever before, MCE anticipates new market scenarios, but above all it creates the ideal conditions for bringing together supply and demand. The new MCE leitmotiv is the Emotional Technology, the technology that is able to emotion, the technology for a better quality of life. Essential is the symbiosis between the technological and practical aspect of the product and the capability to emotion thanks to a high design quality. This responds to the needs of today’s new global lifestyles. Even more significant is the attendance of companies in the Next Energy sector, essence of MCE’s philosophy. This area is based on the concept of sustainable development universally acknowledged a prerequisite, in a synergy between man and environment. Next Energy is also a valuable opportunity for scientific learning, through events focusing on the main current themes. MCE presents Expobagno as a showcase driven by creative excellence that encompasses different business areas and professional disciplines: design, fashion, architecture, furnishings and wellness. A very prestigious window in which technology is combined with the concepts of beauty and wellbeing, in a context with a high emotional impact. 9 Strictly confidential VALUE PROPOSITION  Technology for a better quality of life. Innovation, comfort and attention for energy efficiency and saving issues. MCE is the unparalleled showcase of a technological and cultural evolution that opens new horizons for market developments. A technology that responds to the needs of today’s new and increasingly global lifestyles and to the awareness that economic development must go hand in hand with preserving energy resources. The key players come together to meet at MCE to define new standards for all sectors that contribute to improve the quality of life and working conditions in the areas inhabited by man: heating, air conditioning, refrigeration, plumbing technologies, water treatment, renewable energy, components and bathroom world.   10 Strictly confidential STRENGTHS AND OPPORTUNITIES Strengths: Complete product categories offer Presence of the bellwethers from all sectors Opportunities: Higher presence of international companies Development/growth of the Next Energy sector Leadership in the HVAC sector Acknowledgement as the leading technical and specialized trade fair Strong quality and quantity + increase of international visitors Milan as the best location for strong commercial area and exhibition centre Visitors - targets implementation and qualification Visitor oriented policy 11 Strictly confidential 2010 OBJECTIVES Further increase the attendance of Italian and foreigner professional visitors  Set off the technological innovations proposed by the exhibitors; with a particular focus on the production which is energy efficiency oriented  Encourage the participation of professional visitors from different market sectors  Highlight the innovation in every single section and develop the synergy among the different sectors  Multiply business opportunities 12 Strictly confidential 2010 FOCUSES  Next Energy: highlight of the technological innovations proposed by the exhibitors; with a particular focus on the production which is energy efficiency and saving oriented  Energy efficiency route  Event dedicated to planners  Confirmation of the Scientific Committee along with the involvement of the main trade associations and institutional bodies  High level technical seminars and congresses  Refrigeration further characterisation of the exhibition area inside the hall and focus on the trade visitors of the sector  Expobagno strengthening of the bathroom world as the preferred place for meeting the technicians of hydro-thermo-sanitary world  Internationalization and renovation boost  Dedicated communication  Show moments  Conferences a crammed series of specialised seminars, workshops, and conferences constitutes an important opportunity for professional upgrading and dialogue on current issues 13 Strictly confidential SECTORS MCE gathers the production of its exhibitors in 5 macro-areas, each of them with its own characteristic core HEATING Tradition and Progress COOLING Internationality and Innovation EXPOBAGNO Technology and Design WATER Technics ed Excellence NEXT ENERGY Sustainable efficiency 14 Strictly confidential MCE 2010 EXHIBITORS & AREA BOOKED up to 9 January, 2009 SECTORS EXHIBITING AREA SQM 38.259,00 4.656,00 2.555,00 24.613,00 5.301,50 17.117,00 9.448,00 2097,50 1.085,00 total EXHIBITORS NO. 274 54 32 203 57 208 123 32 15 HEATING NEXT ENERGY WATER TREATMENT AIR CONDITIONING REFRIGERATION PUMPS&VALVES PLUMBING TECHNOLOGY IMPLEMENTS & TOOLS EXPOBAGNO 105.132,00 998 15 Strictly confidential MCE 2010 FOREIGN SALES SITUATION up to 9 January, 2009 SECTORS EXHIBITING AREA SQM 5.223,50 EXHIBITORS NO. 70 HEATING NEXT ENERGY WATER TREATMENT AIR CONDITIONING REFRIGERATION PUMPS&VALVES PLUMBING TECHNOLOGY IMPLEMENTS & TOOLS EXPOBAGNO 1.127,00 232,00 4.717,00 745,00 1.364,00 2.674,00 217,00 64,00 19 6 59 10 29 41 3 1 total 16.363,50 238 16 Strictly confidential MCE 2010 SALES SITUATION – ISF COUNTRIES up to 9 January, 2009 COUNTRY AGENT Target 2010 SQM % Belgium, Holland China China Cyprus Czech rep. France Germany Greece India Korea Poland Spain Exposervice CCCME CBCSA Lemonad Promotion Progress Partners Reed Exhibitions - ISG Reed Exhibitions - ISG Xl Adv. Communication Reed Exhibitions - ISG K. Fairs Polexpo Exhibition GPE 1.600,00 3.000,00 1.600,00 200,00 350,00 2.100,00 5.750,00 1.450,00 100,00 400,00 600,00 2.350,00 1.005,50 2.100,00 0 0 147,00 1.100,50 4.065,00 1.052,50 102,00 198,00 375,00 1.655,50 62,84 70,00 0,00 0,00 42,00 52,40 70,70 72,59 102,00 49,50 62,50 70,45 Taiwan Turkey Uk WES Chamber of Commerce Reed Exhibitions - ISG 520,00 2.300,00 700,00 23.720,00 17 156,00 1.105,00 309,00 13.371,00 30,00 48,04 44,14 Average 56,37 Strictly confidential SECTOR TREND IN ITALY In the next slide you can find the figures related to the market trend in Italy with a focus on MCE sectors (source Anima) 18 Strictly confidential SECTOR TREND IN ITALY 19 Strictly confidential SECTOR TREND IN ITALY 20 Strictly confidential COMPETITORS MCE has different competitors both in Italy and abroad; some are direct competitors because they cover all the sectors that are present in our show, some are indirect since they cover only 1 sector represented in MCE or have a small crossover with the production shown. The major competitors are: – ISH / FRANKFURT – 10/14 March 2009 it represents our direct benchmark being the only one on an international scale that has got the same commercial offer as MCE CHILLVENTA / NURNBERG – 13/15 October 2010 it is a vertical show with a strong focus on refrigeration so it competes with MCE only for cooling sector, it is characterized by a strong participation of international and qualified visitors . – – - CLIMATIZACION / MADRID – 24/27 February 2009 it is an horizontal event that covers all the technical sectors of MCE but the bathroom world. INTERCLIMA ELEC+ IDEOBAIN/ PARIS – 9/12 February 2010 Interclima is a complete show for the hydro-thermo-sanitary industry, very strategic for the internal market There are many other competitors, we would like to mention: CERSAIE / BOLOGNA – 29 September/3 October 2009 it is one of the best trade show of the sector, it has the entire bathroom world in terms of completeness of the commercial offer and in terms of bellwether participation. SOLAREXPO / VERONA – 7/9 May 2009 a vertical show, entirely dedicated to the renewable energy and energy efficiency and saving; it has a particular focus on the photovoltaic world. - 21 Strictly confidential COMPETITOR LANDSCAPE The graphic shows MCE positioning compared to the other competitors on the basis of the surface occupied (size of the circles), number of visitors (vertical axis), number of exhibitors (horizontal axis) Climatizacion ISH 300.000 MCE Interclima Chillventa 250.000 ISH 200.000 Visitors MCE 150.000 100.000 Interclima Climatizacion 50.000 Chillventa 0 0 500 1.000 1.500 2.000 2.500 3.000 Exhibitors Source -AUMA 22 Strictly confidential ASSOCIATIONS/PARTNERS  ANIMA (www.anima.it) - Federation of the Italian Associations of Mechanical and Engineering Industries – is the industrial organisation in the sector that represents mechanical and engineering companies within Confindustria employers association SACERT (www.sacert.eu) with the contribution of the Milan Province and the Municipal districts of Carugate and Melzo, is the association for the promotion of the energy efficiency in the building industry through actions for the development and implementation of the Energy Certification.   AICARR (www.aicarr.it) - is the cultural association for people who operate in the sectors of production plant technology, distribution and the use of heat energy in civil and industrial sectors, in energy savings problems and management control of the plants themselves . Aicarr belongs to REHVA- Federation of European HVAC Associations (www.rehva.eu). ANGAISA (www.angaisa.it) - National Association of Retailers of Sanitary Articles, Air conditioning, Floors, and Bathroom Furniture. ANGAISA brings together Wholesalers and Retailers in the Sector and belongs to the General Confederation of the Tourist Trade and Services and is a founder member of FEST (Federation Européenne des Grossistes en Appareil Sanitaires et de Chauffage). Its product skills extend to plant engineering and to finishing in building, with reference to sanitary items, plumbing, central heating, air conditioning and tiling. ASSISTAL (www.assistal.it) – is a business association in the sector belonging to Confindustria, which protects and represents builders of technology plants and industrial constructions. Founded in 1946, it groups together 1,500 businesses specialised in the design, supply, installation, management, and maintenance of plants. KYOTO CLUB (www.kyotoclub.org) - the Kyoto Club is an association founded in 1998 with the aim of creating a network to promote virtuous policies, so as to minimise the environmental impact of production processes connected to the life cycle of products and to promote renewable energy sources.    23 Strictly confidential WEB SITE www.mcexpocomfort.it The website offers a wide range of information and services on the show and it is a user friendly tool for exhibitors, visitors and journalists with a devoted area for each of these catagories. Exhibitors can enter with a personal password the private area and then easily download promotional material, technical forms, applications for sponsorship opportunities and subscribe to the newsletter. Other services available: highlights and latest news on the sector, exhibitors’list, travel and accommodation, conference programme, useful links… An important requalification of the visitors DB is actually in progress 24 Strictly confidential MSO MSO: Marketing & Sponsorship Opportunities MCE offers itself as partner in the planning of tailor-made co-marketing actions which respond to exhibitors demands and increase their visibility pre/during/post the exhibition by reaching selected targets thanks to a wide database of 500,000 contacts of which 159,000 with personal e-mail addresses. Among the others: direct mailings to a selected MCE visitors target, company banner or advertising messages on the MCE newsletter, online press releases, sponsorship of shopping bags, badge holders, rest areas…. The complete MSO document for MCE 2010 will be available shortly. Besides an example of a spot in the e-newsletter 25 Strictly confidential IMPORTANT DATES AND DEADLINES 26 Strictly confidential EXHIBITOR/STAND RENTAL FEE MCE 2010 STAND RENTAL FEES:  Registration fee euro 750,00 The registration fee has been reduced as the amount concerning the Insurance service is invoiced separately (last time this was included in the fee).  Stand rental fee Extra charges for:  2 open sides  3 open sides  4 open sides euro 199,00/sqm* euro 19,00/sqm euro 34,00/sqm euro 40,00/sqm 6,00€/sqm discount granted to MCE 2008 exhibitors registered within the rebooking deadline. The fees increased of about 6% compared with the last show, in consideration of the inflation impact over the two years. Please remember that it is compulsory to send back FORM 3 – COMMITTEE FOR THE PROTECTION OF INTELLECTUAL AND INDUSTRIAL PROPERTY – along with the registration form being it an integral part of the general regulation. 27 Strictly confidential LAYOUT 2010 28 Strictly confidential