Opportunities and Threats in ASEAN exhibition market

Jimé Essink, President & CEO of UBM Asia

TCEB Exhibition Forum 2011

Bangkok, 20 January 2011

Topics

• Brief introduction on UBM Asia• Exhibition market worldwide and in Asia• Focus on SE Asia• Opportunities/Risks for Thailand• Discussion

UBM Asia offices

Tokyo (56)

Bangkok (41)

Mumbai (136)

New Delhi (17)

Chennai (2)Bangalore (6)

Chengdu (1)

Hong Kong (178)

Shanghai (197)

Beijing (20)

Taipei (9)Guangzhou (80)

Singapore (10)

Seoul (8) Japan

China

Thailand

India

Hangzhou (59)

UBM Asia 3

TurkeyIstanbul (21)

Hyderabad (1)

Korea

Singapore

Taiwan

More than 800 staff in 17 offices all over Asia

44UBM Asia 4UBM Events in Asia

UBM Asia: Leading B2B media operations throughout the region

UBM Asia has subsidiaries in 10 countries and regions and organises eventsin 25 cities. • Offices in Hong Kong, Shanghai, Beijing, Guangzhou, Hangzhou, Chengdu, Tokyo,

Seoul, Taipei, Singapore, Bangkok, Mumbai, New Delhi, Bangalore, Chennai, Istanbul and New York

• Over 800 staff

• 150 events (130 exhibitions)• 34 publications• 12 B2B vertical portals• A million plus customers,

including exhibitors, visitors, conference delegates, advertisers, subscribers and portal members

55UBM Asia 5

History of UBM Asia

First establishment of UBM Asia, with headquarters in Hong Kong.Combination of transfer of pre-existing Asian B2B exhibitions from parent company and three acquisitions: two leading Asian exhibition organisers and a publishing company, all based in Hong Kong.

Acquisition of KSS, a leading Japanese B2B publisher and exhibition organiser by UBM Japan. Acquisition of Japan Jewellery FairSet up UBM China (Guangzhou), the first wholly-owned company in China.

Through organic growth and acquisitions, UBM Asia is long established as the leading commercial exhibition organiser in Asia, with related publications and on-line media.

Acquisition of majority share of Sinoexpo, the leading commercial exhibition organiser in Shanghai. UBM Sinoexpo continues to be jointly run by UBM Asia and the original owner.

Further acquisitions of individual exhibitions by UBM Sinoexpo in China followed, such as Hotelex, a hotel equipment exhibition, and China Ceramic Fair, now part of our Expo Build China.

Acquisition of a majority share, with our Italian partner BolognaFiere, of the Guangzhou Beauty Expo.

Established a new company in India, UBM India.

Acquisition of China International Optoelectronic Expo in Shenzhen, the world’s largest optoelectronic event(now part of eMedia Asia, a UBM JV)

Acquisition of Sign China & LED China and formed UBM Trust in Guangzhou.

Acquisition of Children-Baby-Maternity Products Expo and set up UBM China (Hangzhou) office

Acquisition of Istanbul Jewelry Show and formed UBM Rotaforte

5UBM Asia

19942001- 2005 2007

2010

19981999-2000

20062009

Continuous organic growth and more than 50 new launches and acquisitions

6

UBM Asia: Revenue development

241

182

68 72 76 8492

111124

155 160 173

0

50

100

150

200

250

300

ACT00 ACT01 ACT02 ACT03 ACT04 ACT05 ACT06 ACT07 ACT08 ACT09 3QF10 BUD11

Year

US

$'m

9/11 SARS H1N1 Flu Global Recession

7

UBM Asia: Revenue by geographical region

0

20,000

40,000

60,000

80,000

100,000

ACT05 ACT06 ACT07 ACT08 ACT09 3QF10 BUD11

Year

US

$'m

Hong Kong China Japan India SE - Asia Others

88UBM Asia

UBM Asia: Top 20 events by revenue

Product Sector Net exhibition space(SQM)

1 Hong Kong Jewellery & Gem Fair (September) Fashion 62,722

2 Furniture China Lifestyle 115,729

3 Cosmoprof Asia Lifestyle 31,089

4 Marintec China (2009 biennial event) Trade & Transportation 26,367

5 CPhI and P-MEC China Ingredients 45,018

6 Hong Kong Jewellery & Gem Fair (June) Fashion 24,210

7 CPhI and P-MEC India Ingredients 24,096

8 APLF - Materials, Manufacturing & Technology Fashion 12,145

9 Sign China Other 30,927

10 APLF - Fashion Access, Spring Fashion 9,673

11 Hotelex Shanghai Lifestyle 30,838

12 All China Leather Exhibition Fashion 10,281

13 Children-Baby-Maternity Products Expo Lifestyle 25,645

14 Health Ingredients Japan Ingredients 7,614

15 Asia's Fashion Jewellery & Accessories Fair (June) Fashion 8,625

16 Sea Japan (biennial event) Lifestyle 4,621

17 Tokyo Health Industry Show Health 5,760

18 CPhI Japan Ingredients 4,240

19 China International Boat Show Lifestyle 9,707

20 Asia's Fashion Jewellery & Accessories Fair (September) Fashion 6,183

9

Global exhibitions: a $29 billion marketExhibitions market by geography Exhibitions market by operator

$bn % Events & venues

Events only

Asia is US$ 3.4 billion and only 12% of world market

Percentage of world GDP

11UBM Asia

Size of the exhibition business in Asia

Trade fair market by estimated revenues, 2009Market No. of exhibitions identified Estimated annualised revenue

(US$ millions)Annual revenue per fair

(US$ millions)

China 514 1,136.3 2.2

Hong KongMacau

8815

331.424.5

3.71.6

Greater China 1,492.2

Japan 326 816.1 2.5

Korea 154 228.3 1.4

Australia 166 176.0 1.0

India 112 157.2 1.4

Thailand 75 149.4 2.0

Singapore 74 93.1 1.2

Taiwan 63 86.5 1.3

Malaysia 43 75.8 1.7

Indonesia 43 43.5 1.0

Vietnam 47 42.0 0.8

Pakistan 26 18.2 0.7

Philippines 36 15.8 0.4

Total 1,782 3,394.1 1.9

Source: The Trade Fair Industry in Asia Report (6th Edition 2010) by Business Strategies Group

Total SE Asia is US$ 420m, 12.5% of total market. China is 33.5% and India is 5%.

UBM Asia 11

12UBM Asia

Southeast Asia

12

Population (mn) : 593GDP : US$1.8 trillion (India is US$1.24 trillion) GDP per capita : US$2,995

13UBM Asia

Southeast Asia (ASEAN)• 10 economies: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the

Philippines, Singapore, Thailand and Vietnam.

• Asean Economic Community (AEC): common market by 2015. Free flow of goods, services, capital and people

• Free trade agreements with China and India

• Potential to develop SE Asia regional events

– More interest from international and local exhibitors– More overseas visitors from SE Asia and outside SE Asia

• Which country in SE Asia is best placed to take advantage??

13

Singapore

14

Population (mn) : 4.8GDP : US$181.9 bnGDP per capita : US$37,600

Singapore market

• Mature market• Moderate decline in 2008 and 2009, growth expectation in 2010 and

2011• Limited home market, competition from Hong Kong and Bangkok

• The Sands Expo and Convention Center at Marina Bay Sands will boost Singapore as a destination for conferences and exhibitions

• Singapore Tourism Board is very active in promoting the exhibition industry

• No competition from government • Excellent venues/infrastructure

15

Singapore: Top 6 exhibition organisers’ market share

16

Total market in 2009 (US$ million): 93

Malaysia

17

Population (mn) : 27GDP : US$193 bnGDP per capita : US$7,029

Malaysian market

• Quite a mature market, sandwiched between Singapore and Bangkok as stronger developed exhibition markets

• Small domestic market• Good venues, but rather small (total 80,000 m2 gross versus Thailand

200,000 m2)• Good infrastructure and suppliers• Associations play mostly a supportive role• Government does not organise exhibitions• Set up MyCEB (Malaysia Convention and Exhibition Bureau) to

coordinate MICE promotions:

– In 2009: incentive of US$28,000 per event > 300 foreign visitors• International events in Malaysia > 500 foreign visitors are exempted from

profit tax!

18

Malaysia: Top 5 exhibition organisers' market share

14%

11%

3%

3%

2%67%

MES

MIFF

Trade Link

ECMI

AMB Exhibition

Others

Total Gross Space Occupied: 467,500 sqm

The Philippines

20

Population (mn) : 91.9GDP : US$161 bnGDP per capita : US$1,752

The Philippines market

• Small domestic market• Limited venue space (Total 40,000m2 gross)• Government (CITEM) is involved in organising trade shows: export-

oriented but invite more and more local importers.• CITEM subsidised, so price competition with commercial organisers• No incentives from government• Associations also organise events, mostly low prized • Tedious process in clearing exhibition goods (Philippines is not a

member country of ATA Carnet)• No international organisers, mostly local organisers focusing on

consumer events

21

The Philippines: Top 5 exhibition organisers' market share(Mostly consumer shows)

13%

11%

9%

5%

5%

57%

Global Link

Worldbex

TIME

Premier Events Plus

CITEM

Others

Total Gross Space Occupied Year 2009: 180,000 sqm

Vietnam

23

Population (mn) : 87.2GDP : US$90 bnGDP per capita : US$1,032

Vietnam market

• Strong growth of economy, especially the manufacturing sector• Limited venue space and rental prices are high (total 45,000m2

gross)• License needed from Trade & Industry Department of the City, need

of a local partner• No rules, so risk licenses for same sectors at the same time• No government involvement in organising exhibitions, support is

only for overseas exhibitions• Limited association involvement• Low price of participation versus high costs• Strong need for information, few quality trade shows• Several international organisers are active in Vietnam

24

Vietnam: Top 5 exhibition organisers’ market share

5%3%

3%2%

2%

85%

IIR

SES

Chanchao

Reed Tradex & Adsales

Top Repute

Other

Total Gross Space Occupied: 282,500 sqm

Indonesia

26

Population (mn) : 237.5GDP : US$510.8 bnGDP per capita : US$2,150

Indonesia market• No internationa interest before: political instability and bombing threat • Change in political outlook• Stable GDP growth (5%)• Massive population: 240 million• Two reasonably good venues in Jakarta: Jakarta Convention Center

(20K gross m2) and Jakarta International Expo (25K gross m2)• At present: 51% by foreign-owned exhibition company (100% foreign-

owned was possible for a short period in 2010)• Corruption issue is there, but not much worse than in some other

countries• Exhibitions/face-to-face is important in Indonesian culture• No involvement/competition from government or associations• Mostly smaller local players

27

Indonesia: Top 5 exhibition organisers’ market share

28

Total market (US$ million): 43

Thailand

29

Population (mn) : 67GDP : US$273.2 bnGDP per capita : US$4,080

Thailand market

• Large and growing domestic market, export-related manufacturing is strong

• Excellent infrastructure: venues, airport, roads, hotels, contractors• Attractive location: excellent price/quality• TCEB plays an active role in promoting MICE: incentives for

bringing overseas exhibitors/visitors and “Better the Best Program”• Limited competition from associations

• Government (DEP) is active in exhibitions for finished products with subsidised rates. Competition with commercial organisers.

• Political instability: red/yellow conflict

30

Thailand : Top 6 exhibition organisers’ market share

44%

12%

6%

5%

3%

2%

28%

DEP

REED

UBM

BES

NEO

TTF

Others

Total Gross Space Occupied: 933,000 sqm

65%

17%

7%

4%3% 2% 2%

IMPACT

BITEC

QSNCC

Royal Paragon Hall

Central World

PSUICC

PEACH

Total Gross Space :209,905 sqm

Thailand: Exhibition venues

Going Green for the Future

10 - 25 November 2011

IMPACT Exhibition and Convention Center

BOI Fair 2011 Management: UBM Asia (Thailand)

The Pride of Thailand

Objectives:• To celebrate special year for His Majesty (the King)• To highlight the achievements of Thai industry and create a platform

to meet and do business• To build confidence in Thailand’s economy with special attention to

society and natural environment

Size:• Total exhibition space: 240,000 m2 gross• Total visitors: Five Million over 15 days

34

Floor Plan

Perspective

Royal Pavilion

Activity Stage at Lakeside Area

BOI FAIR 2011 at Night

Key Exhibitors

Toyota Motor Asian Honda Motor

Nissan Motor (Thailand) General Motors Thailand

Mitsubishi Motors (Thailand) Tri Petch Isuzu Sales

PTT Public Company Panasonic Management

Thai Samsung Sony Group Thailand

Hitachi Asia (Thailand) LG Electronics (Thailand)

Toshiba Thailand Double A 1991 PLC

Conclusions

• Thailand is very well placed to take a central role in ASEAN exhibition market, IF:

– Politically stable– Reduce activities of DEP– Continuous promotion by TCEB

• Singapore is the most serious contender in the short term• Indonesia could play an important role in the future• Other SE countries are too small and/or there are too many

restrictions affecting them in playing a significant role

41

jime.essink@ubm.com