The 2023-2028 Strategic Plan has been updated to take into account the important results achieved by the IEG Group during the 2022 and 2023 financial years, in which it exceeded the objectives defined in the 2022-2027 Strategic Plan prepared in a context in which the evolution of the post-pandemic exhibition market was still uncertain.
RIMINI – The Board of Directors of Italian Exhibition Group S.p.A., leading company in Italy in the organisation of international trade fair events and listed on Euronext Milan, a regulated market organized and managed by Borsa Italiana, met today under the chairmanship of Maurizio Renzo Ermeti and approved the 2023-2028 Strategic Plan.
Corrado Peraboni, CEO of Italian Exhibition Group, declared: “On the strength of the results achieved in 2023, which exceeded the targets set out in the 2022-2027 Plan, we are today presenting a Strategic Plan with even more ambitious objectives that envisages robust growth in Italy and international development, also through the consolidation of existing platforms. Our Plan fits into a favourable scenario for the trade fair market which, after the uncertainties linked to the pandemic, has resumed growing at a faster rate than in the past thanks to a renewed desire for aggregation and sharing. In this context we reaffirm the uniqueness of our business model as a #community catalyst & creator with the goal of positioning ourselves among the top international players in event organization with a turnover of over 300 million euros and with a continuous and sustainable value generation”.
Strategic Plan 2023-2028
The new plan confirms the effectiveness of the strategic direction previously defined, enriching it with new development guidelines that aim to accelerate organic growth through an important investment plan necessary to consolidate IEG’s role in the national and international exhibition scene, laying the foundations for further growth by external lines.
The 2023-2028 Strategic Plan confirms the uniqueness of the business model as a #Community Catalyst & Creator, i.e. a leader and innovator in the organisation of events, aimed at becoming dynamic and international experiences that give voice to emerging trends in the sector and unite increasingly large communities.
The plan aims to strengthen the IEG Group’s position as a global player through sustainable growth in turnover and margins capable of producing a solid cash generation to support investments, with a progressive financial leverage reduction.
Strategicdrivers 2023-2028
The strategy underlying the important acceleration of all economic-financial indicators during the 2023-2028. Plan period is based on the following pillars:
- Portfolio growth: An important driver for organic growth is the expansion of the existing portfolio, through investments in the exhibition centers of Rimini and Vicenza, to support the development of the main organized events already at saturation of the exhibition space (Ecomondo, VicenzaOro, Sigep). At the same time, the strategy aims to research and develop new sectors, which IEG, in its role as #community catalyst, provides to implement through spin-offs of existing events and through the development of new products, always scouting M&A opportunities.
- Consolidation of international expansion: The second pillar of the strategy is represented by the consolidation of international development, not only through the existing platforms through whose integration we are executing the 4×4 strategy, but also by developing new markets. The international strategy is also focused on the development of new markets through M&A operations and global partnerships, as well as the expansion of recent acquisitions.
- Value creation: The development of new business lines with high added value, in particular in the digital segment for the evolution of the exhibition experience, combined with the improvement of the margins of the “Services” division is another pillar of the development strategy which will contribute to strengthening the profitability of the Group. Value creation will also be supported by the integration of a sustainability strategy into the business plan, an accelerator of growth and a tool for value creation for our stakeholders.
The new Strategic Plan highlights a growth in all the main economic and financial indicators, in particular Revenues and EBITDA with CAGR 2023-2028 expected at +9% and +13% respectively, as well as a strengthening of the capital soundness with a progressive debt and financial leverage reduction during the plan, despite an important investment plan of approximately 172 million euros financed for approximately 70% through own resources and residually through bank debt, which will allow the Group to be able to seize further growth opportunities by external lines.
Pre-Closing 2023
The growth targets presented in the Strategic Plan are based on pre-closing results for the financial year 2023 that are positioned at the top end of the guidance range and show a strong growth in consolidated revenue expected to be around €210 million (+30% compared to the 162 million euros achieved in the financial year 2022 and +16% compared to the 2022-2027 plan target) and Adjusted EBITDA of 49 million euros (more than double compared to the €18 million achieved in 2022 and +29% compared to the 2022- 2027 plan target) with an Adjusted EBITDA Margin of 23%. back to pre-covid levels, one year earlier compared to the previous plantarget. The Net Financial Position is expected to stand at around 72 million euros, an improvement of 23 million euros compared to 94.8 million euros at December 31, 2022.
Guidance 2024 – Consolidated Data
▪ Revenues: 234-239 million euros
▪ Adjusted EBITDA: 56 – 58 million euros
▪ Adjusted EBITDA Margin: 24%
▪ Net Financial Position: 66 – 70 million euros
Business Data 2023-2028 – Consolidated Data
▪ Revenues 2028: ~ 323 million euros
▪ Adjusted EBITDA 2028: ~ 90 million euros
▪ Adjusted EBITDA Margin 2028: 28%
▪ Net Financial Position 2028: ~ 3 million euros
▪ Investment Plan 2023-28: 172 million euros
▪ Expected dividends 2023-28: ~16/21 million euros
▪ NFP/EBITDA 2023 – 28: <2x
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
