Doing Business in the European Union

The German Trade Show Model

Tradeshow Week & IAEE Conference

Düsseldorf, October 4, 2007

Doing Business in Germany

Doing Business in Germany

� General Information on Germany

� Trade Shows in Germany

General Information Macro�economic significance Quality Characteristics of Trade Shows in Germany Capacities of the German Trade Show Centers Organizers of Trade Shows and Exhibitions

� Trade Shows by US and GB Organizers in Germany

� Messe Düsseldorf – The Group of Companies

� Messe Düsseldorf – Facts & Figures

� Messe Düsseldorf – The Venue

� Düsseldorf – The City

GermanyComparison Western Europe* � USA

9,809,000 sq km9,809,000 sq km

Source: Fischer Weltalmanach 2006

4,327,247 sq km4,327,247 sq km

GermanyComparison Germany – USA:Germany has nearly the same size as Montana

Montana380,848 sq km

Bavaria

Saarland

Rheinland

Pfalz

NRW

Schleswig

HolsteinMecklenburg

VorpommernHambur

g

Mecklenburg

Vorpommern

Germany357,027 sq km

� Located in the center of Europe.

� ‚World champion in exports‘.

� Highly developed infrastructure (more than 7,500 miles of highways).

� An attractive place for investment in Europe.

Germany General Information

� Area: 357,027 sq km

� Population: 82.3 million inhabitants (as of 2006)

� Density: 231 inhabitants per sq km

� Capital: Berlin

� GDP: 2,897,8 billion US$ (as of 2006)

� GDP per capita: 35,183 US$ (as of 2006)

� Main Industries: iron steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food & beverage, shipbuilding

Germany Facts & Figures

GermanyNapoleon arrives in Düsseldorf and visits ‚the Trade Show‘

Trade Shows in GermanyGeneral Information

� Germany is the unrivaled No. 1 worldwide in organizing international trade shows.

� Two thirds of the world’s leading trade shows take place in Germany.

� In the international competition, German trade shows are regarded as particularlyefficient, innovative and most wide ranging.

� In Germany, about 150 international trade shows and exhibitions with up to170,000 exhibitors and between 9 and 10 million visitors take place every year.

� In addition to the international trade shows there is a dense network of regionaltrade and consumer shows with about 50,000 exhibitors and 7 million visitors peryear.

� Furthermore, the German trade show venues annually see about 10,000 B 2 Bconferences and congresses with another 2.5 million attendees. An increasinglinking of tade shows and conference activities is evident.

Trade Shows in GermanyMacro�economic Significance

� Trade shows and exhibitions – together with supporting conferences andcongresses are one of the pillars of the German economy.

� Five of the world’s ten top trade show companies in terms of turnover havetheir headquarters in Germany.

� The German trade show organizers have an annual turnover of around 2.5billion Euros.

� The macro economic production effects reach 23 billion Euros.

� The German trade show business itself guarantees around 100,000 full timejobs; the organization of trade shows and exhibitions indirectly affects around 250,000 jobs.

Trade Shows in GermanyMacro�economic Significance

� The German trade show industry is one of the leading service industries.

� Trade shows and exhibitions are one of the most important marketing tools aswell as the key impulse generators for Germany’s international trade in goods andservices.

� The German trade show companies are increasingly developing into comprehensivemarketing partners for industry.

Trade Shows in GermanyQuality Characteristics of Trade Shows in Germany

� Internationality

� Global exhibitor and visitor marketing

� Excellent price / benefit ratio

� Leading quality of exhibition centers and infrastructure

� Long term cooperation of market partners

� Location at the heart of Europe

� Leading standard in trade show service

� High level of professionalism

� Intensive competitive situation � efficient trade show business

Trade Shows in GermanyQuality Characteristics of Trade Shows in Germany

Internationality:

� More than 50 % of the exhibitors come from abroad – two thirds of whichcome from countries outside Europe.

� In 2006 altogether 6 % more foreign exhibitors took part in German tradeshows than in 2005.

� High number of participants from South , East and Central Asia: in comparisonto 2005, in 2006 22 % more exhibitors from these regions took part in Germantrade shows.

Trade Shows in GermanyQuality Characteristics of Trade Shows in Germany

� 21% of the visitors come from companies with over 1,000 employees.

� The share of managing directors, board members or self employed businesspeople among trade visitors is 30%, among the foreign visitors it is even as high as 48%.

� 61% of the visitors – and even 75% of the foreign visitors are decision makers.

� Out of the 2.26 million German decision makers 85.6% visit trade shows.

Trade Shows in GermanyCapacities of the German Exhibition Centers

� In Germany there are 24 exhibition centers.

� Ten of the German exhibition centers have more than 1.1 million sq. ft. of hall capacity, six others have more than 550,000 sq. ft. of hall space.

� Together they offer a total of around 30 million sq. ft. of hall space.

� In 2006, the total capacity increased by 0.8% in comparison to 2005.According to current planning, it will continue to increase at 0.8% annuallyfor the next years. By the end of 2009, the total of hall space is expected toadd up to 31 million sq. ft. .

Trade Shows in GermanyCapacities of the German Exhibition Centers (Halls)

69,700 sqmFriedrichshafen

70,000 sqmBad Salzuflen

101,200 sqmLeipzig

105,200 sqmNeue Messe Stuttgart

110,000 sqmEssen

160,000 sqmNuremberg

160,000 sqmBerlin

180,000 sqmMunich

251,274 sqmDüsseldorf

284,000 sqmCologne

321,750 sqmFrankfurt (Main)

495,265 sqmHannover

Source: Auma

59,682 sqmHamburg

59,235 sqmDortmund

57,000 sqmAugsburg

18,000 sqmOffenbach

19,725 sqmOffenburg

21,500 sqmFreiburg

24,519 sqmSaarbrücken

30,000 sqmMunich (M,O,C)

38,400 sqmPirmasens

39,050 sqmBremen

40,160 sqmSinsheim

52,000 sqmKarlsruhe (Neue Messe)

130,060 sqmReliant Center Houston

180,000 sqmBologna Fiere

160,000 sqmBerlin

160,000 sqmNuremberg

120,000 sqmFiera del Levante Bari

122,000 sqmVeronafiere

125,950 sqmChina Complex Guangzhou

130,112 sqmGeorgia WCC Atlanta

131,100 sqmMessezentrum Basel

140,000 sqmIMPACT Bangkog

148,309 sqmFira Barcelona

150,000 sqmIFEMA Madrid

180,000 sqmMunich

186,000 sqmLas Vegas CC

190,875 sqmOrange County Orlando

200,000 sqmNEC Birmingham

206,000 sqmParis�Nord

227,380 sqmParis Expo

250,830 sqmMcCormick Place Chicago

251,274 sqmDüsseldorf

284,000 sqmCologne

321,754 sqmFrankfurt (Main)

345,000 sqmFiera Milano

495,265 sqmHannover

Trade Shows in GermanyCapacities of Exhibition Centers (Halls) worldwide

Source: Auma

Trade Shows in GermanyCapacities – 251,274 sqm gross > 14 Baseball Fields

Trade Shows in GermanyOrganizers of Trade Shows and Exhibitions

� Most German trade show companies are quasi public organizations.

� The 24 German trade show companies with exhibition centers of their own all are

operators of their respective venue organizers of trade shows and exhibitions and suppliers of all kinds of trade show related services.

� In order to coordinate common interests, in 2002, the trade show companies Messe Berlin, Messe Düsseldorf, Messe Frankfurt, Deutsche Messe Hannover, Köln Messe, Messe München and Messe Nürnberg set up a joint venture, the ‘GDG’.

� All together, around 100 trade show and exhibition organizers operate in Germany.

� International trade shows are staged by around 40 organizers.

Trade Shows by US and GB Organizers in Germany

� The following US and GB based companies are operating in or from Germany:

• Centaur Exhibitions • CMP Information Ltd. • CWIEME Coil Windings

International Inc. • DMG World Media • easyFairs Ltd. • EDA Exhibitions

Ltd. • E.J.Krause & Associates Inc. Germany • Expomedia Events GmbH

• Horizon House Publications Inc. • IDG Communications Media AG • IMP

Events Ltd. • Life Plus Europe Ltd. • Mack Brooks Exhibitions Ltd. • OSGi

Alliance • PennWell Corporation • Penton Media GmbH • Recycler Publishing

& Events Ltd. • Reed Exhibitions Deutschland GmbH • Skybridge Events

Ltd. • Tarsus Ltd. • UKIP Media & Events • VNU Exhibitions Europe …

Messe Düsseldorf Group

� Founded: in 1947

� One of the most international trade show locations in the world.

� Over 40 trade shows in the events portfolio at the Düsseldorf venue, including 23

world No. 1 fairs (drupa, K, interpack, Medica, wire/Tube ....)

� In addition, around 80 trade shows staged outside Germany every year

� 40 years‘ + international trade shows experience worldwide

� 3,303,160 sq. ft. total exhibition space (halls + outdoor) at the Düsseldorf venue

� International network

� 13 subsidiaries and joint ventures

� 68 agencies abroad covering 108 countries

� 1,459 employees worldwide

Messe Düsseldorf Group

DüsseldorfMarketing & TourismusGmbH

Düsseldorf5,357%

DüsseldorfMarketing & TourismusGmbH

Düsseldorf5,357%

GEC�GermanExpositionCorp.Int. GmbHBerlin33,33%

GEC�GermanExpositionCorp.Int. GmbHBerlin33,33%

Düsseldorf Congress Veran�staltungsges.

mbHDüsseldorf

50%

Düsseldorf Congress Veran�staltungsges.

mbHDüsseldorf

50%

DüsseldorfFashion HouseVerwaltungsges. mbHDüsseldorf

50%

DüsseldorfFashion HouseVerwaltungsges. mbHDüsseldorf

50%

Velethry Brno a.s.

Brno60,4%

Velethry Brno a.s.

Brno60,4%

Messe DüsseldorfChina Ltd.

Hong Kong80%

Messe DüsseldorfChina Ltd.

Hong Kong80%

Messe Düsseldorf

ASIA Pte. Ltd.Singapore100%

Messe Düsseldorf

ASIA Pte. Ltd.Singapore100%

Messe DüsseldorfJapan Ltd.Tokyo100%

Messe DüsseldorfJapan Ltd.Tokyo100%

MesseDüsseldorf

IndiaPvt. Ltd. New Dehli100%

MesseDüsseldorf

IndiaPvt. Ltd. New Dehli100%

Vystavki Brno, o.o.o. Moskau 100%Brno INN a.s. Brno 74,17%Expo restaurace a.s. Brno 100%BVV Fair Travel spol. s.r.o. Brno 100%BVV spol. s.r.o. Brno 100%Kongresove centrum Brno a.s. Brno 66%BD EXPO spol. s.r.o. Budapest 75,10%CENTREX s.r.o. Budapest 25%Vlecka BVV spol. s.r.o. Brno 100%

Shanghai New International

Expo Center Co. Ltd.

Shanghai50%

Igedo Company

GmbH & Co.KG

Düsseldorf77,05%

Igedo Company

GmbH & Co.KG

Düsseldorf77,05%

MesseDüsseldorfMoskauOOO

Moscow100%

MesseDüsseldorfMoskauOOO

Moscow100%

MesseDüsseldorf

North America Inc.

Chicago100%

MesseDüsseldorf

North America Inc.

Chicago100%

Messe Düsseldorf GmbHMesse Düsseldorf GmbH

U1 M

F 5/0

7

Chicago

Singapore

New Delhi

Tokyo

ShanghaiHong Kong

Moscow

Düsseldorf

Brno

Messe Düsseldorf GroupRight in the Heart of Growth�Markets worldwide

04/0

7 U

K M

F

Inter national

Markets

exhibitors & visitors

companies

Messe Düsseldorf GroupA two�way Strategy

M�PLAS 07Kuala LumpurVisitors 6,687

Exhibitors 158

M�PLAS 07Kuala LumpurVisitors 6,687

Exhibitors 158

TIPREX 06BangkokVisitors 7,573

Exhibitors 192

TIPREX 06BangkokVisitors 7,573

Exhibitors 192

K 04DüsseldorfVisitors 230,978

Exhibitors 2,904

K 04DüsseldorfVisitors 230,978

Exhibitors 2,904

Messe DüsseldorfCross�Selling No 1. Trade Show K

PLASTINDIA 06New DelhiVisitors 80,000

Exhibitors 1,290

PLASTINDIA 06New DelhiVisitors 80,000

Exhibitors 1,290

Arabplast 07DubaiVisitors 14,499

(incl. Techno/Tube)

Exhibitors 537

Arabplast 07DubaiVisitors 14,499

(incl. Techno/Tube)

Exhibitors 537

CHINAPLAS 06ShanghaiVisitors 59,812

Exhibitors 1,420

CHINAPLAS 06ShanghaiVisitors 59,812

Exhibitors 1,420

INTERPLASTICA 07MoscowVisitors 23,000

Exhibitors 507

INTERPLASTICA 07MoscowVisitors 23,000

Exhibitors 507

PLASTEX 06 BrnoVisitors 26,094

Exhibitors 189

PLASTEX 06 BrnoVisitors 26,094

Exhibitors 189

ASEANPLAS/ASEANRUBBER 05SingapurVisitors 7,956

Exhibitors 352

ASEANPLAS/ASEANRUBBER 05SingapurVisitors 7,956

Exhibitors 352

PLASTICS & RUBBERVIETNAM 07Ho�Chi�Minh�CityVisitors 486

Exhibitors 115

PLASTICS & RUBBERVIETNAM 07Ho�Chi�Minh�CityVisitors 486

Exhibitors 115

U1 M

F 5/0

7

Messe DüsseldorfCross�Selling No. 1 Trade Shows wire/Tube

wire/Tube 06DüsseldorfVisitors 68.828

Exhibitors 1.927

wire/Tube 06DüsseldorfVisitors 68.828

Exhibitors 1.927

wire/Tube 05Singapore Visitors 4.412

Exhibitors 284

wire/Tube 05Singapore Visitors 4.412

Exhibitors 284

wire/Tube China 06ShanghaiVisitors 30.131

Exhibitors 923

wire/Tube China 06ShanghaiVisitors 30.131

Exhibitors 923

Tube India 05HyderabadVisitors 3.800

Exhibitors 95

Tube India 05HyderabadVisitors 3.800

Exhibitors 95U1 M

F 5/0

7

TUBOTECH 07São PaulonewOct. 2 – 4, 2007

TUBOTECH 07São PaulonewOct. 2 – 4, 2007

Tekno/Tube Arabia 07DubaiVisitors 14.499(incl.ArabPlast)

Exhibitors 223

Tekno/Tube Arabia 07DubaiVisitors 14.499(incl.ArabPlast)

Exhibitors 223

Tube, Metallurgy, Aluminium 05Moscow

Exhibitors 304

Tube, Metallurgy, Aluminium 05Moscow

Exhibitors 304

wire Russia 05MoscowVisitors

Exhibitors 240

wire Russia 05MoscowVisitors

Exhibitors 240

together 12.000

Messe Düsseldorf GroupTrade Shows in Brno

� Thanks to Schengen, all borders will disappear.

WarsawBerlin

Düsseldorf

Poznań

München

Leipzig

Vienna

Budapest

Bratislava

Prague Brno

Ljubljana

Messe Düsseldorf GroupTrade Shows in Brno � Facts & Figures

� Gross exhibition space

192,000 sqm

� Capacity: up to 50,000

visitors per day

� 7,000 parking spaces

� Professional logistics

� Owners:

� 60.4% Messe Düsseldorf,

� 33.8% City of Brno

� 530 employees

� Annual turnover: 60 million Euros (2006)

� Organization of trade shows in co operation with professional associations.

� Exhibition services including stand construction.

� Many years of experience with trade shows abroad (Moscow, Düsseldorf….).

Messe Düsseldorf GroupTrade Shows in Brno � Facts & Figures

Messe Düsseldorf GroupTrade Shows in Brno � Facts & Figures

� 50 international events

� 24 leading trade shows in Central Europe

� 43 leading trade shows in the Czech Republic

� Annually:

� 1.0 million visitors

� 12,500 exhibitors

� 500,000 sqm of net exhibition space

Messe Düsseldorf GroupTrade Shows in Brno � Facts & Figures

Profile of the expert visitors

� 5.8 % directors and company management

� 19.2 % middle management and business directors

� 34.2 % engineers, designers, IT specialists

� 48.7 % “decision makers“ with purchasing potential

� 7.1 % foreign visitors

Profile of exhibitors

� 4.0 % global corporations

� 7.9 % big domestic companies

� 88.1 % small and medium companies

� 26.0 % foreign companies

� 16.1 % new exhibitors

Messe Düsseldorf GroupTrade Shows Brno �Portfolio

Industrial machines, technologies and materials, transport

Information technologies, security, education

Agriculture, forestry, food industry

Fashion, clothing, shoes

Civil engineering, interiors, community sector

Medicine and healthcare

Travel and leisure

City of Düsseldorf

56.5%

Industrieterrains

Düsseldorf Reisholz AG

20%

Düsseldorf Chamber of Trades

1.75%

Düsseldorf Chamber of Industry

and Commerce

1.75%

08/0

4 U

K M

F

Messe DüsseldorfShareholders

20%State of North

Rhine Westfalia

0

50

100

150

200

250

300

350

71�75 76�80 81�85 86�90 91�95 96�00 01�05

Messe DüsseldorfTurnover Development 1971 � 2006

*Not included in 1995 figures: 36 € m for building work (cost passed on)

** Not included in 1996 figures: 24 € m for building work (cost passed on)

Average over 5 years

Annual developmentin group turnover

€ m

€ m

U1 M

F 7/0

7

2006304 Mio. €

33 54 78 129 167* 255** 304

Messe Düsseldorf Ranking of international Trade Show Organizers

767406

375304

252

232216

199

170168

157155

136142

171*

200

160*

250

212

189

Reed ExhibitionsMesse Frankfurt

Fiera Milano

Messe Düsseldorf

CMP Informationdmg world media

Deutsche Messe AG

KoelnmesseMesse München

IIR (excl. Informa)

GL Events

NEC BirminghamVNU Exhibitions

IFEMA Madrid

Messe BerlinComexpo

EMAP

Paris Expo

ExposiumMesse Schweiz

� German trade show venues

2006 sales in EUR million2006 sales in EUR million

Source: AUMA, *2005 sales

Messe Düsseldorf Trade Shows in Düsseldorf in 2006

15Partner & Guest Shows

22MD Trade Shows

37Trade Shows total

13,999from foreign countries

26,222Exhibitors total

326,562from foreign countries

1,297,026Visitors total

2,062,100Space Use net sqm

985,420Space rental net sqm

EventsEvents

ExhibitorsExhibitors

VisitorsVisitors

Space Space

U1 M

F 5/0

7

� MD trade shows

� Partner & guest shows

� MD trade shows

� Partner & guest shows�

1

Trade & ServicesEuroCisEuroShop®hogatec®IAM®iba®InterCool®InterMeat®InterMopro®ProWein®BEFA®BTSBerufe livedc düsseldorf contemporary

Electronic PartnerIMAOMDPSIREMAXREWETrau Dich!

Machinery, plant& equipmentdrupa®

GIFA®

glasstec®

interpack®

K®

METAV®

METEC®

NEWCAST®

THERMPROCESS®

Tube®

wire®

EMV

VISCOM

Fashion & LifestyleGDS®/GLS

global shoes &

accessories

BEAUTY

INTERNATIONAL®

TOP HAIR

INTERNATIONAL

IGEDO FASHION FAIRS

DüsseldorfLeisure

boot Düsseldorf

CARAVAN SALON®

TourNatur

04/0

7UK M

F

1No.1No.

1No.

Medicine & HealthA+A®ComPaMED®MEDICA®REHACARE

INTERNATIONAL®INFO DENTALExpopharm

Trade Shows in Düsseldorf

�

Technical Services

� Stand Equipment

� Stand Construction

� AV Equipment� Telecommunications

� Electrical, Sanitary & Air Installations

� Suspended Ceilings

Business Services

� Conference Facilities � Press /VIP Club Facilities

� Organizer´s Offices

� Staff Agency

� Travel Agency

�Marketing Support � Courier Service

Logistics

� Forwarding Agencies

� Stand Security

� Stand Cleaning

� Waste Management� Parking Facilities

� Bus Shuttle

Supporting

�Facilities & Services

� Accommodation

� Travel Arrangements

� Special Events � Catering

� Doctor‘s Office

� Insurances

� ATM

„One�Stop�Shopping“Full�Service

forGuest Shows

„One�Stop�Shopping“Full�Service

forGuest Shows

Messe Düsseldorf – Your global PartnerServices for Partner� & Guest�Show Organizers

Messe DüsseldorfThe Venue

Düsseldorf

Messe Düsseldorf

Fast Connections

*Driving Time

Königsallee 15 min*Railway Station 15 min*

Airport 10 min*

Rhine

Old Town 15 min*

ICE Station 10 min*

Messe DüsseldorfTrade Shows, Conferences and Hotel in one Venue

Messe DüsseldorfThe Conference Center

CCD. South, ‚Stadthalle‘ and CCD.Pavilion

The three units CCD.South, ‚Stadthalle‘ and CCD.Pavilion which can be used either separately or jointly – are ideal locations for conferences, seminars and workshops but may as well be used for opening sessions or receptions:

� Representative entrance areas.

� 35 rooms for 20 to 2,100 persons.

� Capacities for up to 7,500 attendees.

� State of the art AV equipment.

� 57 meters of registration counters.

� 2 VIP apartments.

� Direct access to Hall No. 3.

Messe DüsseldorfEvent�Locations

LTU arena

CCD. Congress

Center Düsseldorf

CCD. Ost

museum kunst palastHalle 6

Halle 8

PhilipsHalle

ISS Dome

Messe Düsseldorf –No. 1 Trade Show Venue

22 44 66 88 1010 1212 hoursflight

hoursflight

DüsseldorfDüsseldorf

DüsseldorfFast Connections

DüsseldorfAirport Düsseldorf International

Airport Düsseldorf International

� 2 miles from the Messe Düsseldorf venue� driving time: 10 minutes� third largest airport in Germany� about 16 million passengers per year� 500 direct flights per day� 180 destinations (Germany, Europe, US, Asia)� 70 airlines

Only a stone‘s throw away:

Airport Düsseldorf International

DüsseldorfCatchment Area

Minsk

Bukarest

Sofia

Moscow

Kiew

Helsinki

Tallin

Riga

Vilnius

LisbonMadrid

Bern

RomTirana

Wien

Luxemburg

Paris

London

Dublin

Brussels

The Hague

Kopenhagen

OsloStockholm

Berlin

Prag

Athens

Budapest

Bratislava

Warsaw

Düsseldorf

ZagrebLjubljanaj

Sarajewor Belgrad

Skopje

30 miles

catchment area:

9 million people

90 miles

catchment area:

30 million people

300 miles

catchment area:

148 million people

08/0

4 U

K M

F

City of culture& science

DüsseldorfThe Global Village

Business City68,000 companies within the greaterDüsseldorf area including 5,000

subsidiaries of non

German companies

City of media, telecommunications and advertizing

40,000 hotel beds1,000 restaurants &

cafés

City of hospitality

Heinrich Heine

University, universities

of applied sciences,

museums, theaters,

opera house, galleries

There are 40,000 hotel rooms in a radius of 40 km � of which 16,000 are in Düsseldorf

2,725 rooms4,071 rooms5,951 rooms3,746 rooms

Hotel Room Capacity

More information: www.duesseldorf tourismus.de

DüsseldorfThe Global Village

Welcome !