1. OUTLOOK
More events are scheduled to take place in 2016 than in un-
even years. HMC aims to continue its profitable growth and
to break even over a two-year period by 2025. To this end, a
strategy entitled ROAD TO 2025 was developed describing
the challenges, goals and fields of action. Growth will be pri-
marily achieved through the expansion of HMC’s own trade
fairs, the acquisition of profitable guest events and the up-
coming revitalisation of the CCH. Collaborations with other
trade fair organisers in and outside Germany will also be con-
sidered and larger numbers of events will be acquired for the
uneven years where possible.
The CCH will be modernised and expanded in 2017, 2018
and the first half of 2019, so that from mid-2019 onwards a
“new” CCH will be able to meet future requirements.
2. EARNINGS
HMC expects revenue of EUR 104.3 million for the 2016
financial year, which means that revenue is anticipated to
increase by around 4.4 percent compared with the reference
year.
Owing to the significant financing costs for leasing the Neue
Messe property, the high maintenance expenses for Halls B1
to B4 as well as the costs arising from the financing and de-
preciation of CCH’s expansion, the company expects to post
a net loss before loss absorption of around EUR 8 million for
2016. Property costs will continue to have a negative impact
on earnings in the coming years. Higher losses are also ex-
pected in the future, particularly for uneven years.
HGV will absorb the losses that are expected for the next
years within the scope of the existing profit and loss transfer
agreement.
3. RISK REPORT
RISK MANAGEMENT
HMC maintains a risk management system that enables
timely and systematic analyses and assessments of the com-
pany’s exposure to risk as well as the development of per-
tinent countermeasures. These analyses and assessments
concern both strategic and operational risks.
In terms of its future development, at this time HMC is una-
ware of any risks that might jeopardise the company as a go-
ing concern.
No events of special importance that would have resulted in
a material change in the presentation of the company’s net
assets, financial position and results of operations occurred
after the close of the financial year.
Hamburg, 17 March 2016
BERND AUFDERHEIDE DR. ULLA KOPP
President and Chief Financial
Chief Executive Officer (CEO) Officer (CFO)
D. OUTLOOK, RISKS AND OPPORTUNITIES
52 HAMBURG MESSE UND CONGRESS Annual Report 2015