MCH on the way: "Exhibition formats must change".

Bernd Stadlwieser did not mince his words at the start of the press conference on August 8: "The MCH Group has many successful years behind it. But it has suffered from market changes and management mistakes since 2016." He also said, necessarily after three years of uncertainty among customers, shareholders and the public: "We're not in such a bad position."

His relative optimism relates to the core business "Exhibitions" and to the growth field of Live Marketing Solutions. "Experience", the core business of MCH Live Marketing Solutions, is the big growth field in the USA, where they own the service provider mc2. Bernd Stadlwieser sees growth opportunities in this market, the American and the Asian. Another growing business field is the congress business, which opens doors for the other MCH Group activities. 

Bernd Stadlwieser named a three-point plan: Industrial trade fairs such as Swissbau or Ilmac are stable, they are to be strengthened, in the area of Business:to:Business the cost:benefit ratio for exhibitors is to be increased and public trade fairs must be "reinvented", must offer more experiences.

Bernd Stadlwieser has made the most of his first weeks in office since June 15. "Innovation and digitization will be very much at the center. But it is also necessary to increase efficiency. It will be difficult to find the balance between restructuring and innovation."

Asked whether further layoffs are to be expected, he said: "Efficiency means not only employees, but above all processes. With Art Basel, we are far ahead in digital. This know-how is now to be transformed to our other trade fairs. We have only done that marginally so far. Trade show formats have to change. The extension of trade fairs is massively important. The dichotomy of live versus digital no longer exists."

Basel and Zurich are first-class locations, he says. "But we have missed out on internationalization to some extent," says Bernd Stadlwieser. With the exception of the expansion of Art Basel - the world's leading fair - to Miami Beach (pictured) and Hong Kong, as well as the acquisition of Masterpiece London and its expansion to Hong Kong, this area was lacking. The exhibition market in the U.S. (where they acquired service provider mc2) and Asia is very stable, he said. "We are missing this market, I am positive that we can expand in the U.S., we will have to invest," he says.

The MCH Group, just like the international exhibition business in general, is undergoing a transformation. "But we are in the next phase," says Bernd Stadlwieser. At MCH headquarters, they are working on the strategy, on new business fields and on business plans. The MCH Group has called in management consultants McKinsey for this purpose. "They're fast," says Bernd Stadlwieser. He wants to arrive at strategic decisions quickly; time is a competitive element. "We want to go into implementation at the beginning of 2020. That looks good."

Judging on the basis of Bernd Stadlwieser's appearance: A new dynamic is perceptible at the MCH Group. It is necessary, but not self-evident. Other organizers, also abroad, show themselves (still) immobile and contribute to the decline of famous exhibitions. This inertia seems to have been overcome in Basel.

The flagship Baselworld will take place in 2020 and probably beyond. Exhibit & More, which was taken over years ago and whose trade shows are disappearing or declining almost without exception, will be integrated into the Swiss trade show organization and disappear as an independent entity. The Grand Basel for enthusiast cars launched in 2018 will also be stopped. The majority of it has already been written off.

One of the key questions surrounding the MCH Group is what to do next with the exhibition centers in Basel and Zurich, which are expensive to maintain. Bernd Stadlwieser (Fig.) said ambiguously that he did not yet want to take a final position on this issue, but he did insinuate: "Our hall capacity utilization is only slightly below the average in Europe. But we ask ourselves: who is the best owner of our infrastructure?" In plain language: the exhibition halls will either be sold (have to be) or spun off into an operating company. The good news on this: no further extraordinary write-downs will be necessary on the exhibition halls in Basel and Zurich.

Bernd Stadelwieser was positive, open, transparent. He talked about all the burning issues of the MCH Group. He is a good communicator, which is a psychological advantage for a listed company. Incidentally, the stock exchange, or rather the satisfaction of shareholders, ran like a red thread through Bernd Stadlwieser's reflections and was an expression of the mood of optimism in Basel, including the signal of cooperation with McKinsey. Since the beginning of 2019, even before Bernd Stadlwieser took office, the share price has risen from 18.80 to 22.60 - and on the day of his media appearance it rose further to 23.80. "But we have to be prepared for a long-term horizon."