35 / 79
through construction of a new multi-storey car
park.With professional planning in advance of the
measures with external specialists as well as by a
special controlling during the Koelnmesse 3.0
programme, the company has taken all steps to
keep the work of expansion from adversely
affecting events held there.
Market risks exist relative to extensions of event
contracts. Densely packed event schedules,
particularly in the spring and fall time windows,
may lead to scheduling conflicts. On the other
hand, there are opportunities associated with
self-generated and newly acquired events. In certain
market segments, there are also risks as a result of
increasing competitive pressure.
Particularly noticeable is the at times tight
situation in the hotel market with regard to
individual events, which can lead to capacity
bottlenecks and an associated competitive
Koelnmesse exhibitors and visitors.
Another risk factor for the trade fair programme is
the tense security situation in terms of internation-
al terrorism. Infrastructure such as airports, railway
stations and event centres are particularly in focus.
Koelnmesse responds to this with individual
security concepts and increased cooperation with
police and authorities in the context of its events in
Cologne.
Financial risks take the form of currency risks in the
event of wide fluctuations in the value of the Euro
relative to foreign currencies of the Koelnmesse
subsidiaries.
The sustained implementation of the reorganisation
measures carried out remains a major success
factor for the positive development of earnings and
for positive operating cash flow in the years ahead
The existing trade fairs and exhibitions at
Koelnmesse continue to develop in a positive
overall direction. New trade fairs are being organ-
ised and carried out in Germany and abroad. The
Cologne branding process demonstrates that
Koelnmesse, with events for the international
business community, is the most important aspect
for the attractiveness of Cologne as a business
location.
Over the medium term, the positive trend in events
is expected to lead to increasing sales and net
profits. From the management’s point of view, the
assumptions on which the expected developments
are based are subject to operational and economic
opportunities and risks.
The risk-opportunity management system in place
within the Koelnmesse consolidated companies
ensures that these opportunities and risks are
monitored and assessed promptly and systemati-
cally. Countermeasures will be introduced if and
wherever necessary. A distinction is made between
strategic, political/legal and technical risks, market
and financial risks, and the relevant opportunities.
In some cases, business risks are covered by
insurance plans.
Management sees fundamental strategic opportu-
nities in the location close to the city that is
attractive to exhibitors and visitors alike. The attrac-
tiveness of the complex is manifested and further
developed through the measures taken under the
Koelnmesse 3.0 investment programme. The
measures represent the most comprehensive
modernisation programme undertaken in the
history of Koelnmesse. Once work is complete in
the year 2030, Koelnmesse will offer the most
attractive, city-centre trade fair complex in the
world. Koelnmesse is tackling the challenges
concerning the parking and traffic situation
01. Assessment of opportunities and risks
IV. Outlook and assessment of opportunities and risks
Management Report 34/35