Musikmesse and Prolight + Sound Opening Press Conference Frankfurt am Main, 11 March 2014

1. Musikmesse and Prolight + Sound Opening Press Conference Frankfurt am Main, 11 March 2014

2. Detlef Braun Member of the Board of Management of Messe Frankfurt GmbH

3. Musikmesse and Prolight + Sound 2014: the economic climate • The German economy: developed positively in 2013 Gross domestic product up by 0.5 percent compared to 2012 • Eurozone is recovering at a moderate rate – despite the highly heterogeneous nature of the individual member states • ‘ifo-Institut’ economic research institute forecasts a gradual upward trend for the world economy in 2014  Less restraint in terms of large-scale investments and private consumption

4. Event sector in the best economic light • Event-technology sector achieved a turnover of around € 3.5 billion in 2013 • Prognosis for 2014 positive with sales growth of up to 2 % for the German culture and creative sector

5. Driving forces of the sector: innovations + investments • Perfect events call for the very latest technology High level of demand • New requirements with regard to event safety and sustainability promote increased sales • Big orders expected against the background of major sporting events to be held in 2014

6. Successful platform for an innovative sector • Prolight + Sound 2014:897 exhibitors from 42 countries • All key players from the fields of audio, lighting, theatre and stage technology, as well as media technology, visual communication and systems integration, taking part • 64 percent of exhibitors come from outside Germany • Top 10: Great Britain, China, Italy, the USA, the Netherlands, Taiwan, Belgium, France, Spain, South Korea

7. Ups and downs in the musical instrument sector • IFH Retail: turnover of € 930 million musical instruments and sheet music in 2013 • More customers but lower sales in the music retail trade  retailers unable to take advantage of the good consumption climate in Germany • Top sellers: digital pianos, acoustic guitars, sheet music, trumpetsPoor sellers: recorders, electric guitars • Music retailers cautiously positive about 2014 • Musical instrument manufacturers particularly satisfied with export orders

8. Negative trend: fewer young people taking up an instrument • Retailers bemoan declining sales of instruments for beginners • Reason: fewer children and young people are being encouraged to take up an instrument deficits in music education will become visible

9. Situation in the sector reflected by development of exhibitor numbers • Musikmesse 2014: 1,345 exhibitors from 51 countries,a decline of 2 % compared to 2013 • Consolidation trends in the sector becoming visible • High level of internationality:68 percent of companies come from outside Germany • Top 8: USA, China, Italy, Great Britain, Spain, France, the Netherlands, Switzerland

10. Musikmesse and Prolight + Sound worldwide – leading trade fairs for live entertainment and event technology • Musikmesse increases its clout in the expanding Russian market via a joint venture with NAMM since 2012 and integration of Music Moscow in the autumn of 2013 • Music China sets new records in 2013:1,680 exhibitors (+5 %)68,621 visitors (+14 %) • Prolight + Sound China:414 exhibitors20,039 visitors

11. Cordelia von Gymnich Vice PresidentConsumer Goods & Entertainment Messe Frankfurt Exhibition GmbH

12. Impulses for business and social lifeProgramme of events helps promote music making and advanced training

13. Testing allowed: encouraging young people to take an interest in music making • Musikmesse ‘Music4Kids’ initiative introduces children to music making and rhythm in a playful way • Support for numerous other initiatives: • Class Music Making • Beginning with Music • School Jam finale at the fair • Presentation of the European School Music Award

14. Musikmesse – live! • Overture: PRG Live Entertainment Award • Awards for excellent musical instruments, for outstanding personalities in the world of music, for the best musical-instruments and pro-audio products, the best drummer, and the best pianist • Culture at Musikmesse: German Music Council and nmz music newspaper to present the ‘Musik-Gordi’, a negative award for disservices to culture • Musikbiz Lounge & Congress: business and culture platform brings together the musical instrument and music industries

15. Public Days at Musikmesse Friday Afternoon: • - Opening to the public on Friday afternoon • - Special tickets for all visitors from 14.00 hrs • - An additional 4,000 music aficionados came to Musikmesse 2013 Public Saturday: - Saturday the biggest public day with special events - All musical instruments can be handled and played - Numerous stars on the stages and the exhibition stands - Over 50 live acts

16. Musikmesse and Prolight + Sound: synergistic factors for the world of live entertainment • Production, Broadcast & Recording: ‘Quickfinder’ and online exhibitor search engine to around 200 exhibitors of both fairs whose products and services are used in an interdisciplinary way for production, broadcasting and recording • ‘Moving Picture Pavilion’: camera technology rounds off the spectrum in the broadcasting segment

17. Prolight + Sound: focus on event management and top theme of ‘event safety’ Eventplaza 12 to 15 March Conference and exhibition on innovations and solutions for event management I-ESC – 2nd International Conference on Event Safety For event decision makers Subject spectrum: technical safety, visitor protection and health and safety at work

18. Prof Christian Höppner Secretary General German Music Council

19. Gerhard A. Meinl Chairman Federal Association of German Musical Instrument Manufacturers

20. ‘Auf Wiedersehen’ at Musikmesse and Prolight + Soundin Frankfurt am Main from 12 to 15 March 2014 www.musikmesse.com www.prolight-sound.com