Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Fiera Milano result at the 31st March 2023 conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Vincenzo Cecere, Head of Investor Relations and Sustainability. Please go ahead, sir.
Good evening, everyone. Welcome and thank you for joining us today. This is Vincenzo Cecere speaking at Investor Relations and Sustainability, and I'm here with Francesco Conci, new CEO, and Andrea Maldi, CFO of Fiera Milano. The purpose of the call is to provide you with an update on Fiera Milano's Q1 2023 results. The presentation will be structured in four sections. During the first section, Mr. Francesco Conci will give you an overview of business and 2023 outlook. Then, Mr. Andrea Maldi will go through the divisional results and financial figures in greater detail. On a final note, an update on sustainability commitment will also be provided. At the end of the call, you will be invited for a Q&A session with management available for your questions.
As you may know, following the shareholders' meeting called for April 27, 2023, the new board of directors has been appointed, with Francesco Conci elected as the new CEO and General Manager of Fiera Milano. I would like to take this opportunity to introduce you to Mr. Francesco Conci, who has been working in Fiera Milano for more than 20 years with different responsibilities, from the Group Marketing Director to CEO of Fiera Milano Congressi. At this point, I'll leave the floor to Francesco Conci for a personal introduction and a general overview of the quarterly results. Please, Francesco, go ahead.
Good evening, everyone, and thank you for joining the call today. As Vincenzo mentioned before, I'm very familiar with the company, having been working in Fiera Milano for more than 20 years, both at Fiera Milano Congressi as Commercial Director first, Strategy Development Director later, and finally CEO, and at Fiera Milano as a Strategic Marketing Director. I'm honored to join the Board of Directors of Fiera Milano, and I'm convinced that, thanks also to the professional skills of all the management team, we will continue along the group path of growth by strengthening an international dimension and enriching the portfolio of owners and those in the division, leveraging the attractiveness of Milan and guaranteeing a high level of quality and sustainability of the exhibition district, in line with the strategic trajectory of the CONN.ECT 2025.
We are ready to face the challenges to seize the opportunity that will arise in the near future, with the belief that Fiera Milano will have to play an ever greater role in the development of Italian companies abroad and, thus, as an international hub, able to offer a unique platform for hosting global and outstanding events. Regarding the quarterly results, just an introductory message before leaving the floor to Andrea Maldi. With 15 exhibition halls, 30 congress events, more than 250,000 square meters occupied, revenue of EUR 48.1 million and EBITDA of EUR 8.9 million, Q1 2023 confirms the relaunch of Fiera Milano activities and the well-established beginning of 2023, with high appreciation both for participants, exhibitors, and buyers. In particular, this excellent result obtained by the fashion exhibition and the relaunch of BIT allow us to look ahead to 2023 in a positive way.
We have, in fact, a very rich exhibition calendar scheduled from the full year 2023 for more than 15 exhibitions in Italy, 20 abroad, 160 congresses covering all the strategic industries representing the excellence made in Italy and the world, for example, food, design, tourism, fashion, and machinery. Even if the industry is not immune to the difficulties of the macroeconomic scenario, Fiera Milano looks to the future with confidence, expecting to reach an EBITDA target of EUR 70 million, EUR 80 million as of 31st December 2023. Alongside economic financial objectives, the group's commitment to developing an increasingly sustainable business model continues. We have recently published our now new sustainability report, which I invite you to have a look at, and launched the first carbon footprint measurement for our international tourism exhibition BIT. At this point, I will leave the floor to Andrea for the business and financial review.
Thank you, Francesco, and good afternoon, everybody. Clearly, I will try to use next year's financial results for the first quarter of 2023. We are extremely satisfied with the results, the positive results that we've been able to achieve in Q1. We reached a level of EUR 48.1 million of revenues, which represents a significant increase to the comparison that we had with the Q1 2022. This is to be fair, to be represented in a fair way, because clearly, in 2022, first quarter, we have been facing the refacing of the calendar year of the events, given the Omicron pandemic development at that time. EBITDA is extremely positive as well. We reached a level of EUR 9 million, with a significant improvement again with the quarter, which is difficult to be compared in terms of performance.
At the same time, the net financial position is equally getting better, starting from the positive gain of EUR 30 million at the end of December 2022, reaching the level of EUR 37.5 million in the first quarter, with an improvement of about EUR 7 million. If we try to have a look at the way we're presenting our financial statement and the cash-generating units of the business model of Fiera Milano, you might remember that we try to segment our business into three categories: Italian exhibition business, which is clearly the main one in terms of financial and representing the core of the business, which is including all the Italian fair events. At this point, we can say that we reached the level of EUR 40 million revenue out of the EUR 48 million, with an EBITDA that stood at EUR 7.6 million + in the first quarter of 2023.
This is mainly given to the representation that we've been able to have, as Francesco was mentioning, 13 exhibitions within that period. We have been able to lead more than 250,000 square meters in the first quarter. The main events that took place during the quarter in terms of Italian exhibition have been HOMI, PTE, the Promotion Trade Exhibition. At the same time, we had the fashion industry that has been represented by Milano Unica, with 394 companies represented in terms of exhibitions, MIDO, which is the International eyewear fair, which welcomed more than 1,000 exhibitors at the same time, from over 150 countries. This is clearly the reason behind the fact that the Italian exhibition business raised the level of more than 100% compared to Q1 2022.
If we look at the second segment division, which is the foreign business, basically, we are pretty much aligned to what we did last year. Clearly, Q1 is not representing entirely the evolution of the foreign business because most of the activities which are coming from our joint venture with the German guys of Koelnmesse is going to be represented in the second part of the year, in which we are going to have 90% of the events that are going to be planned in Shanghai, in China, and the other districts of China with the German partners. This is going to have a value more or less at year-end of EUR 2.5 million of EBITDA, while in this quarter, we can still commend the fact that we reached significant results with our fair events in Cape Town.
We have also a positive effect of the start of the different events in Brazil, which clearly took place in the first quarter, but unfortunately, we had to support an increased, even if not significant at group level, an increased size of cost in Brazil. If we look clearly at the third division, which is extremely important for Fiera Milano for the group, we are talking about congresses. Congresses are reaching the level of EUR 8.8 million in Q1 2023, with an EBITDA which moved from a negative of EUR 0.9 million, -EUR 1 million in 2022, to a positive of EUR 2 million in the first quarter. Clearly, again, we are talking about more than 30 congress events that took place during the first quarter of 2023.
I think that if we move into the financial review, I'd like to specifically comment on the net financial position, which is clearly an important element of evaluation of what we're doing in terms of businesses. As we discussed briefly, we moved from the positive EUR 30 million of net financial position to EUR 37.5 million, being able in the quarter to generate more than EUR 7.7 million of Free Cash Flow. This is mainly coming from this +EUR 7.7 million of Free Cash Flow; it's mainly coming clearly from a negative impact of the application of Fiera Milano 2016 in terms of cash out for the rent of our venues. At the same time, a positive effect of almost EUR 16.2 million coming from a very favorable working capital, given the increase of the amount injected in terms of advance payment and the reduced of liabilities in terms of debtors and suppliers.
These two effects have been able to generate an operating cash flow of EUR 11.3 million, impacted then by the side of the financial figures and moving to a Free Cash Flow of EUR 7.7 million. I think that this is mainly the clear narrative of the financial of Q1. We have been able to represent the fact that in terms of ratio, our current assets versus current liabilities is moving on the range around 0.7-0.8, so almost close to the number one level, which is clearly demonstrating the capability of financing, of stability and of financing clearly our liabilities and our assets. In terms of equity plus non-current liabilities versus fixed assets, we are still in the range of one as well, which is clearly another significant important element of financial stability and good leverage of structure in our balance sheet.
Before moving to the Q&A section, I give the stage to Vincenzo for describing our continued journey and improved journey into the sustainability path.
Thanks, Andrea. Just a closing remark on sustainability. Alongside economic financial objectives, the group's commitment to developing an increasingly sustainable business model continues. We have recently published our new Sustainability Report, which includes the 2022 performance and the medium to long-term strategic sustainability plan for 2025. The document is available on the company website, and we invite you to have a look at the document. In February, we performed the first carbon footprint measurement of BIT, the international tourism exhibition, which aimed to reduce the environmental impacts coming from the different phases of the exhibition. Finally, we are proud to have joined the United Nations Global Compact, which encourages companies to actively promote the principle of ethical conduct and responsible business. I believe we have concluded with the presentation, and we can start with the Q&A session. Thank you.
Thank you. This is the Chorus Call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. To remove yourself from the question queue, please press star and two. We kindly ask to use handsets when asking questions. Anyone who has a question may press star and one at this time. The first question is from Emanuele Gallazzi with EQUITA. Please go ahead.
Good evening, everybody. First of all, it's very good to speak with you, Francesco. You were really clear on the future strategy of Fiera Milano consistently with the CONN.ECT 25 business plan, but I was wondering if you could share a little bit more on your view on future Fiera Milano strategy. My second question is on the guidance for 2023. I just would like to understand how comfortable you are with the midpoint of the EBITDA guidance and if you can give us a sort of updated guidance for the financial position at 2023 year-end. Thank you.
Thank you. Nice to meet you. The group strategy will continue to be focused on the four strategic areas which represent the foundation of the CONN.ECT 2025 strategic plan. First of all, strengthening of the portfolio of owned exhibitions by expanding their international reach and launching new concepts to resilient sectors linked to the promised macro trends. Two, expanding the number of hosted events and occupation of spaces through strategic alliances and partnerships. Three, consolidation of leadership in the congress business, leveraging one of the most modern and largest congress centers in Europe. Four, promotion of traditional and digital services through a platform-based model.
We will continue along the group path of growth by strengthening its international dimension and enriching the portfolio of owned and hosted exhibitions, leveraging all the attractiveness of Milan and guaranteeing a high level of quality and sustainability of exhibition districts in line with the strategic trajectory of the CONN.ECT 2025. During the course of the year, we will present the market an update of the CONN.ECT 2025 plan in order to provide you with a more advanced picture of the business in terms of new market dynamics and new initiative launches.
Thank you, Francesco. Emanuele, coming to your second question, which is more related, if I got it right, to the guidance for 2023 and in terms of net financial position, I think that despite there are still some elements of uncertainty related to macroeconomic context, mainly due to the fact that we need to take care of our inflation rate that is going to move in 2023, the war between Ukraine and Russia, the cost of energy that might increase still in the third quarter during the period in which the Italian government is going to stock for the gas in that period. Despite this kind of element of uncertainty, we are extremely positive. We seem to be able to deliver at least the midpoint of the guidance provided to the market during the budget session at the end of December 2022 for the year 2023, clearly.
As you know, we are now closing the first quarter in a very positive way. We are now having this call with you, but we are at the middle of May, for which we already know the results of such significant events like Salone del Mobile, and we have quite a good outlook on the way the main key events are going to take place in 2023, mainly referring to hosts and the second part of the fashion industry in the season of September, October. We have a good outlook on this, and we have a good expectation on the results of these key events, which are going to be extremely important for our P&L in 2023. That is why I'm stating the fact that we are extremely confident in terms of confirming the guidance in the range of the midpoint.
At the same time, for the net financial position, I think that the target of EUR 20.5 million is really achievable, probably without, let's say, moving into significant or creating expectation. I think that it might be even a bit better than what we expect to be for the year-end in terms of target.
Okay. Thank you very much. If I may, I have two questions. The first one is on, let's say, Fiera di Parma in the sense that we are basically two months after the closing. Can you just give us a sort of update on the strategy with Fiera di Parma? The second one is I have read a lot about the Winter Olympics in Milan and the involvement of your mission, the Fondazione. Can you just remind us what is the opportunity for Fiera Milano and what should be the potential impact from the Olympics?
Okay. Very clear, Emanuele. Thanks for your questions. Look, let me start from Fiera di Parma. As you know, as the market knows, we have been able to make the closing of Fiera di Parma and an A deal, getting an 18.5% of stake into the company of Fiera di Parma. While we are speaking right now, to the food, our main events in the food and agriculture industry are taking place right now with an extremely positive result in terms of exhibition, square meters sold, and in terms of visitors, which is clearly something that we were expecting, but we are even exceeding the results that were already in our budget.
The event is going to be formally held now in the months from Fiera di Parma, but as you can imagine, given the fact that it's taking place just after the closing, this event is being fully managed by the team of Fiera Milano in terms of realization and organization. We are extremely confident that given the synergy that we are going to create in terms of international exhibition, capability of working with Federalimentare, the future of TuttoFood, powered by Cibus in Fiera Milano is going to meet the financial described within the combined plan that is supporting the rationality of the operation of the M&A deal with Fiera di Parma. The fact that even this year, in 2022, the results are a bit better in terms of compared to the one expected. We are exceeding the recovery versus the pre-COVID size of TuttoFood.
This is a further boost that is providing support again to the deal that we made with Fiera di Parma. As you know, in Fiera di Parma, we are for sure transferring the going concern and the kind of strong governance with two board members from Fiera Milano, including the board of Fiera di Parma, and with, let's say, shareholders' agreement with other private shareholders for which we are going to manage the 51% of the shareholder quota of Fiera di Parma. This is clearly a strong point for which we try, and we are going to collaborate with them in terms of the development of the event here in our venue. I think that's it.
About the Olympic Games, you have heard from the press, of course, a memorandum of understanding as we sign towards the speed skating rink at Fiera Milano Rho for 2026.
The project involves the unification of pavilion 15 and 15 in a single unit for a total of 35,000 square meters of colored arc capable of hosting the 400-meter speed grandstand with around 6,000 seats, total visibility of the city squid. As well, training track, changing rooms, and further structure necessary for the organization. In the whole of 2024, 2024 will be dedicated to the creation of the media center. The structure, which is an environment sustainable, will be powered almost exclusively by the photovoltaic system, one of the largest installed in Europe, on the roofs of the exhibition hall, which today reaches a power of 12.1 megawatt peak and which will be expanded by 2024 up to 15 megawatt peak. Approximately 6,000 parking spaces for the public and 1,500 for staff and service personnel are available on the plant.
In addition to public infrastructure facilities such as the underground and the railway service, there will be a rent of approximately EUR 20 million, which will be offset by market rings that the Fondazione Fiera Milano recognized to Fondazione Milano Cortina. The project will create new business opportunities considering also the diversification of the use of the exhibition center, which will be increasingly competitive and international level.
Thank you. Thank you very much.
As a reminder, if you wish to register for a question, please press star and one on your telephone. Once again, if you wish to ask a question, you may press star and one on your telephone. Mr. Cecere, there are no more questions registered at this time. We're going to turn it back to you for the closing remarks.
Thank you, everybody, for participating. Should you have any other questions, do not hesitate to contact us at the investor relations email available on our website. Thank you very much.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephone.