Fiera Milano

Investor Presentation • Feb 23, 2021

Fiera Milano Group Strategic Plan 2021-2025

CONN.E.C.T 2025

Connections, Exhibitions, Community, Transformation

Agenda

01. Fiera Milano: initial setting and recent performance

• 02. Market and competitive scenario
• 03. Fiera Milano's strategic positioning and guidelines in the New Normal
• 04. Fiera Milano's 2021-25 targets and projections
• 05. Back-up Strategic framework
• 06. Back-up ESG Strategy and actions

2

Fiera Milano: initial setting and recent performance

Fiera Milano shows a history of growth of more than 100 years

Source: Fiera Milano, Roland Berger analysis

Milan, February 23rd Fiera Milano Group – CONN.E.C.T 2025 , 2021

Fiera Milano is currently active in 4 businesses

Source: Fiera Milano, Roland Berger analysis

Fiera Milano is the leading Italian operator in the Exhibition industry – Covid-19 crisis in 2020 interrupted 2017-19 growth trend

Key highlights

• 2017-19: significant profitability improvement mainly linked to cost efficiencies; constant net sold area
• 2020: abrupt interruption of growth trend, with most events cancelled due to Covid-19 crisis – 74% revenue reduction and sharp reduction in EBITDA, down to EUR 10m

1) Preliminary

Source: Fiera Milano, Roland Berger analysis

Milan, February 23rd Fiera Milano Group – CONN.E.C.T 2025 , 2021

Market and competitive scenario

After Covid-19 impact, in 2020 Exhibition market dropped by 68% in revenues compared to 2019

Exhibition market size – Main 14 countries [2015-20E; USD bn]

Estimated decline in mkt size – Main 14 countries [2020 vs '19]

Source: AMR International, Fiera Milano, Roland Berger analysis

Main industry reports highlight different recovery paths for different geographical areas, with '22 still below '19; Italy with slower expected recovery

Expected market trend in 2022 vs. 2019

Key highlights

• Overall assumption for 2022 is that pandemic crisis will be contained and that most of events will be running
• Individual recovery rates affected by country-specific drivers
• Lower expected GDP recovery and high dependence on SMEs to drive slower Italian ramp-up

Considering recent context evolution (i.e. vaccine release), a faster ramp-up can be expected for Italy

Key highlights

• Depicted scenario (-42%) represents a hard case assuming depressed international travel and social distancing enforced through 2022
• Considering latest evolutions (e.g. vaccine release), a milder case is considered
• Specific players' performances driven by business model (underlying industries, international exposure, ..)

Source: AMR International, Fiera Milano, Roland Berger analysis

Exhibitions market rebound to pre-Covid levels expected in '24 for Europe and US, possibly '23 for Asia – Global congresses recovery expected already in '23

Key highlights

Europe & US:

• No events in Q1 2021, expected recovery start in Q2
• No international exhibitions in Q2
• Recovery in events and attendance in Q3-Q4

Asia:

• Progressive recovery in Asia in Q1-Q2 and in H2 2021
• Limited international attendance vs. pre-Covid levels for 2021

COVID-19 outbreak driving emerging trends for the exhibition industry

Health & safety as priority

Hybrid & digital events • Ensure consumer safety with respect to events and gatherings

• Technological investments in venues to follow safety regulations
• Vaccine release and distribution in Q1-Q2 2021 to limit virus spreading
• Increased importance of Digital in the exhibition industry after Covid-19 crisis
• Expected role of Digital as complementary solution within a Phygital environment; substitutive role less likely in the long term

Government financial support

• Government support and financial aids to sustain the exhibition industry

• Supporting venues highly strategic to the recovery, as the exhibition value chain is critical in terms of potential GDP creation

Regulatory environment

• Social distancing measures and restrictions to international travel expected to soften after vaccine release

Source: Press review, Mergermarket, Roland Berger analysis, Fiera Milano

Fiera Milano has one of the largest venues in the exhibition market, but with lower levels of internationalization and direct organization of events

Selection of key players in the Exhibition Industry

1) Based on 2019 exchange rates: 1 EUR = 0.88 GBP, 1.12 USD); 2) Calculated as aggregate of Informa Markets, Connect and Tech BUs;

3) Considering only Rho venue; 4) Calculated evenly weighting international revenue share 2018 (50% international revenues on total = 100), avg. % international exhibitors 2018 and avg % of international visitors 2018

Source: UFI, AUMA, Statistics Report Emeca 2018, Roland Berger analysis, Fiera Milano

Fiera Milano's strategic positioning and guidelines in the New Normal

03

Purpose Creating a world of opportunities for businesses and individuals through our European Hub in Milan and beyond and our global network

Be the leading smart hybrid platform for innovative, sustainable and business-relevant events, with a European Hub and a Global reach

Mission

To achieve this goal, Fiera Milano is on the verge of business model transformation

	Current state	Ambition
Target products	(B2B)	(B2B and Corporate events) (B2C)
Geographies
Key partners	> Organizers of hosted exhibitions	> Organizers + Service providers + International partners
Channels
Key assets	> Physical venue as main core asset	> Physical venue + Digital platform + Service partners
Core competencies	> Venue management + Event scouting	> Venue management + Event scouting + Event management & organization + Digital
Revenue model	> Venue valorization	> Venue valorization + Value-added services
Cost model	> > % Fixed (e.g. Venue) % Variable (e.g. Partner)	> > % Fixed % Variable
Overall business model	Venue for business matchmaking among exhibitors and visitors through organized or hosted events	Leading hybrid platform for innovative and effective events, with a European Hub and a Global reach
Source: Fiera Milano, Roland Berger Fiera Milano Group –	Italy International Physical CONN.E.C.T 2025	Digital Milan, February 23rd, 2021

Strategic Framework

Key pillars

Source: Fiera Milano, Roland Berger

FMG strategic plan is based on business excellence, scaling and transformation around the 4 main business areas

Source: Fiera Milano, Roland Berger

Fiera Milano Group defined strategic goals for each key business area

Services and contents platform

Capture full potential of both traditional and digital services through a platformdriven business model

Exhibitions organization

Strengthen portfolio of organized exhibitions by focusing on internationalization and new concepts

Venue

Secure and enhance hosted exhibitions and venue occupancy through strategic alliances with organizers and by attracting new exhibitions

Consolidate and expand congresses positioning by leveraging the venue,

Congresses

developing strategic alliances and being the enabler for phygital events

Source: Fiera Milano, Roland Berger

Services & Contents platform

Create and leverage a one-stop-shop platform-driven business model

Business model

Move from a traditional silos-driven business model to a one-stop-shop platform-driven business model through physical & digital touch points and by leveraging a flexible and scalable model

Source: Fiera Milano, Roland Berger

Exhibitions organization

leading players Re-positioning and scale-up

• Recover performances and grow own exhibitions; example: exploit Host's international positioning to develop partnerships with leading players involving TuttoFood (focus on scale) and Homi (focus on exhibition repositioning)

Internationalization

• Increase share of international exhibitors/ buyers in Italy
• Become the reference Made-in-Italy global platform
• Foster international geo-cloning of key events in most attractive global markets

New Concepts

• Launch new (co-)organized B2B exhibitions in attractive and anti-cyclical market segments (e.g. Life science, Greentech, Ebusiness) and B2C exhibitions

Source: Fiera Milano, Roland Berger

Re-positioning and scale-up framework1)

Venue

Maximize venue exploitation

Main initiatives

Develop alliances to consolidate portfolio (e.g. simultaneous and colocated combination of leading events in strategic industries)

Support Hosted exhibitions' performance recovery/ improvement (e.g. roadshow-support, management of administrative and sales offices)

Scouting and attraction of new exhibitions (e.g. international exhibitions, B2C events)

Implement safety measures to attract visitors and buyers in the New Normal

FM will also leverage its competencies in Venue management to provide services to other Venues

Congresses

Exploit state-of-the art congress center to foster FM's growth path and enhance positioning

FM to become the main leading congress center in Europe by leveraging a state-of-the-art venue

Main initiatives

Collaborate with other national and international venues for Joint Business Development

Bring into the market a reconfigured integrated, safe and sustainable venue to attract world-class events

Consolidate and reinforce Milano City Convention Bureau in collaboration with local institutions to promote Milan as a top-EU destination

Offer state-of-the-art digital technologies (e.g. HD video recording and streaming) to enable the Phygital congress

Source: Fiera Milano, Roland Berger

Fiera Milano Group - Strategic Plan 2021-2025 Milan, February 23 22 rd, 2021

In a 1st strategic phase, focus on business excellence, scaling-up and on preparing for business transformation, that is then realized in a 2nd phase

Source: Fiera Milano, Roland Berger

HR transformation, Commercial & Product Development excellence, digital transformation and investment on the venue are key enablers to meet the ambition Enablers

Source: Fiera Milano, Roland Berger

Key strategic enablers related to evolution of resources / competencies, processes, digital and physical infrastructures

Enablers and Goals

HR Transformation & Organizational Alignment	Commercial and Product Development excellence	Digital transformation	Investments on the Venue & continuous improvement
> Deploy the right team and competencies to meet the ambition	> Set the right rules of the game	> Enable the platform business model and digital services	> Propose a top quality, efficient and sustainable venue
Key aspects
New Roles (e.g. Digital/ Business Transformation)	Integrated commercial processes	State-of-the-art systems (e.g. CRM, Finance, etc,)	Network 2.0 (Smart cameras, WiFi renovation)
New Resources (e.g. Digital)	Customer-centric approach	Fiera Milano Platform	Photovoltaic system
Training (e.g. market orientation, product dev., digital)	KPIs and incentives	Data Hub and analytics	Continuous improvement
	Dedicated resources and skills alignment (Organic development)	≈ EUR 10-15 m (CapEx '21-'25)	≈ EUR 90-100 m (CapEx '21-'25)
	Backed by Fiera Milano Group	Including resources for	Backed by Fondazione Fiera Milano
Source: Fiera Milano, Roland Berger		business experimentation
Fiera Milano Group – CONN.E.C.T 2025		Milan, February 23rd, 2021	25

Fiera Milano has already developed advanced solutions to be launched in '21

Source: Fiera Milano, Roland Berger

50% Operational excellence Enhanced customer experience 15% Safe and Smart District 25% 10% Sustainability and innovation Total investments Fondazione Fiera Milano 2021-25 Total investments Fiera Milano 2021-25 Total investments 2021-25 ≈ 25 90-100 115-125 Investments on the Venue Backed by FFM Incl. EUR ≈ 10-15 m of digital transformation

CapEx plan [2021-25; EUR m]

Source: Fiera Milano, Roland Berger

Source: Fiera Milano, Roland Berger

FMG committed to pursue ambitious sustainability goals, responsibly creating value for customers and industries, for its people and for communities

Source: Fiera Milano, Roland Berger Note: 1) Supply Chain Management

04

In '25, FMG expected to achieve EUR ≈ 290-310 m revenues and EUR ≈ 110-120 m EBITDA; net cash projected to a range of EUR ≈ 75-85 m by '25

• Exhibitions assumed to restart in Q2 2021, assuming successful containment of global pandemic
• In 2021, most of events traditionally held in H1 postponed to H2; since 2022, exhibitions calendar planned to follow traditional/ pre-covid scheduling
• Fiera Milano expected to overachieve 2019 EBITDA in 2025
• NFP projected to improve from a net debt of EUR 24 m in 2020 to a net cash in the range of EUR 75-85 m in 2025

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16; 3) Preliminary values

Milan, February 23rd Fiera Milano Group – CONN.E.C.T 2025 , 2021

Digital transformation and focus on services are key drivers to overachieve 2019 EBITDA in 2025 despite an expected reduction in sold area

EBITDA1) and Sold Area trend 2021-2025 [EUR m, SQM m]

Remarks

• Continued recovery over the period 2021-2025
• Expectation of a like-for-like2) contraction of sold areas Vs. 2019 by 42% in 2021 and by 12% in 2025
• Digital transformation and focus on services as key drivers to protect and enhance revenues per sqm and to recover profitability in spite of volume contraction

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals; 2) comparison performed considering average contraction in sold areas of exhibitions held in 2019, 2021 and 2025

Exhibition restart in September vs May 2021 would mainly impact 2021 revenues and EBITDA and cumulative cash generation

Key financials 2021-25 – Alternative scenario

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16

Milan, February 23rd Fiera Milano Group – CONN.E.C.T 2025 , 2021

Additional opportunities have been identified and could be leveraged by FMG to gain full potential; potential risks mainly coming from exogenous factors Potential EBITDA impact

On top of financial targets, FMG set specific ESG targets

Source: Fiera Milano, Roland Berger analysis

Fiera Milano Group – CONN.E.C.T 2025

Milan, February 23rd, 2021

FORWARD-LOOKING STATEMENT

• This document has been prepared by Fiera Milano SpA solely for information purposes and for use in presentations of the Group. The information contained herein has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein.
• None of the company, its affiliates, or its representatives and advisors shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
• This document includes forward-looking statements. These forward-looking statements express current expectations and projections about future events, involve predictions and are subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. Prospective investors are cautioned not to place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in many cases, beyond our control. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed in this document might not occur and no assurance can be given that the anticipated results will be achieved. Actual events or results may differ materially as a result of risks and uncertainties facing Fiera Milano and its subsidiaries. Such risks and uncertainties include, but are not limited to increased competition and regulatory, legislative and judicial developments that could cause actual results to vary materially from future results indicated, expressed or implied in such forward-looking statements. Moreover, any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future.
• More specifically, our forward-looking statements have been defined while economies, sectors and communities are being hit by the aftermaths of one of the most severe global outbreak of modern history, connected with the start of COVID-19 pandemic in early 2020.
• Within this context, our statements are supported by Roland Berger analysis on the likely evolution of general and business environment
• We believe that global pandemic will be contained in the course of 2021 thanks to massive deployment of available vaccines; as a result, we believe that physical exhibitions will start to be held again from Q2 2021 and that volumes will progressively recover to pre-COVID levels by 2024-2025.
• This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
• The Manager responsible for preparing the company's financial reports, Marco Pacini, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this document corresponds to the document results, books and accounting records.

05

Back-up – Strategic Framework

Services & Contents Platform

FM to increase value capturing along the value chain thanks to both traditional and digital services through a platform-driven business model

Strategic phases

Realize and exploit transformation Excel, scale and prepare for transformation

Enhance penetration in traditional services

• Enlarge and improve FM value capturing along the value chain by offering additional high value-added traditional services, mainly through 3rd-party partners, and lowering the focus and resources in low value-added services

• Preliminary focus on stands set-ups, in particular on customized stands

Develop digital services offering and build the platform business model

• Identify and prioritize customer needs by developing an attractive digital services offering

• Move from a traditional silos-driven business model to a one-stop-shop platform-driven business model by matching clients demand with a broad range of value-added services provided by 3rd-party partners

• through physical and digital touch points
• by leveraging a flexible and scalable model

Build and animate sector communities

• Develop a holistic community ecosystem where FM becomes a recognized reference player and the main orchestrator in specific sectors (e.g. Food and Hospitality)

• Content creation (webinars, sector analyses, …) and business facilitation (networking, matchmaking, …) are key pillars to maintain the community highly (e.g. # unique visitors) and continuously (i.e. all over the year) active

Source: Fiera Milano, Roland Berger

Traditional services

Increase value capturing along the value chain

Average exhibitors' spending by service category [2019; %]

Source: Fondazione Fiera Milano, Fiera Milano, Roland Berger analysis

Digital services

Capture full potential from digital services

Digital services: key axes Ambition : 15% incidence on Revenues1)

Virtual / hybrid events solutions

• Digitalization of traditional services and increased functionalities for hybrid events:
• Exhibitors/ Organizers portals
• Exhibition's websites & Adv.
• Business matching
• Virtual rooms/ booths
• age
• Connectivity
• Mobile APP
• Digital payments
• ….

Hybrid Data & Information solutions 1 2 3 Transactional solutions

• Development of new "pure digital" services such as Intelligence services:
• Data Analytics
• Trend barometer
• Development and intregration of digital contents within FM platform
• Interviews
• Webinars

• …

• Sector analysis

• Integration of transactional solutions within Fiera Milano platform to allow direct product procurement
• Enabled by partnerships with digital marketplace providers (no make)

Mix of digital services differentiated depending on ultimate needs addressed by each specific exhibition

(E.g. transactions-driven, information-driven, entertainment-driven)

Note. 1) % on area revenues Source: Fiera Milano, Roland Berger

Contents community

Create and animate an active community around Fiera Milano ecosystem through contents

Strategic guideline

Fiera Milano to develop a holistic community ecosystem living beyond the fair, both physically and digitally

Source: Fiera Milano, Roland Berger

Exhibitions organization

To boost exhibitions organization, FM to focus on strengthening current portfolio, internationalization and new concepts

Strategic phases

Realize and exploit transformation Excel, scale and prepare for transformation

Strengthen portfolio of organized exhibitions

Reposition suffering exhibitions (e.g. Homi) and scale-up exhibitions not yet at full potential (e.g. Tuttofood) by leveraging Hosts' point of strengths through partnerships with leading players

Strengthen international positioning

• Attract international visitors and exhibitors to current exhibitions and attract new international exhibitions

• Definition and development of an internal FM organizational structure focused on increasing international exposure

• Focus on few projects only with sizeable ambition targets in attractive geographies and strategic industries as key success factor for FM

New concepts: expand into attractive segments (B2B and B2C)

• Development of new B2B event concepts in sectors with positive expected outlook in 2020-25 to exploit business opportunities (Life Science, E-business and Green Tech are first potential targets)

• Development of B2C co-organized events targeting consumers, also to enhance and increase exploitation of the venue. Combination of exhibition and experience/ entertainment (e.g. sports, live performances, food, etc.) as potential concept to be further investigated

Source: Fiera Milano, Roland Berger

Exhibitions organization

Fiera Milano outgoing internationalization strategy is focused on few projects but with sizeable targets in attractive geographies and strategic industries

Source: Fiera Milano, Roland Berger

Development of new sectors / concepts is the result of a structured process, aiming at identifying attractive opportunities

Source: Fiera Milano, Roland Berger

Enforcement of safety measures, improvement of hosted exhibitions, promotion of alliances and increasing venue exploitation as key actions

Source: Fiera Milano, Roland Berger

Venue

Key initiatives have been identified to foster congress business growth path

Fiera Milano's annual and biennial exhibitions expected to achieve a positive double digit growth rate in 2021-25

06

Back-up – ESG Strategy and actions

Specific actions in progress or foreseen to achieve increased environmental sustainability

ESG Strategy and actions - Environment

1 Environment

Develop strategic management of environmental sustainability issues to minimize the Group's impact

• Measuring Scope 3 emissions

• All venues connected to the district heating

• LEDs hall lighting in all venues

• Silver LEED certification for the service centre, convention centre and office towers at the fieramilano district; LEED certification for MiCo congress centre

• 100% of electricity produced from renewable sources for MiCo congress centre

• Lauch of plastic-free project for fieramilanocity site and MiCo congress centre

• Micro-filtered water dispensers at the offices of fieramilano district and at the MiCo congress centre

• Compactors for the collection of PET plastic bottle along the central axis of fieramilano site

• Operational plan for the optimization of the waste management process

• Photovoltaic system at fieramilano site

• Green procurement

• Use of recyclable carpet

• Certifications extension

• Crisis Management Plan

• Promotion of sustainable mobility

Source: Fiera Milano, Roland Berger

Specific projects/ actions conceived or in progress to increase training, professional development and safety

ESG Strategy and actions - People / Human Capital

2 People / Human Capital

• Enhance human capital

• Protect the health and safety of workers and all people in Venues

• Promote diversity and equal opportunities

• Training plan on digitalization for employees

• Work-life balance: flexibility, social clauses, support for family life and parenthood welfare - "WellFair" online platform

• Professional training programs and Next Generation FM

• Great Place to Work ® certification

• Extension of Performance Leadership Management (PLM) plan and inclusion of CSR objectives

• Consolidation of succession and management continuity plan

• CSR awareness and development program for Group employees (Social Responsibility Contest)

• Launch of employer branding project

• Further initiatives on diversity and equal opportunities

• Digital Workplace: APP and Smart working

• Implementation of services to improve quality and greater job security

• Investment in health and safety

• Strengthening the safety culture and implementation of a management system

• Safety Plan

Source: Fiera Milano, Roland Berger

Actions are defined or in progress to improve relationships with external stakeholders (customers, extended communities)

ESG Strategy and actions - Social

3 Social

• Promote sustainability culture into the business

• Promote social and economic development

• Promote quality and customer satisfaction culture

• Customer Satisfaction Survey for services and own exhibitions through advanced systems

• Implementation of a claim management system to assess services sold and the quality of services provided

• Post-show debriefing process for all events

• Collection of left-over food

• CSR content development for own exhibitions

• Promoting social initiatives in the local area

• Implementation of corporate and social volunteering initiatives in the local area

• Urban apiary at MiCo congress centre

• Gold Healthy Venue certification for MiCo congress centre

Source: Fiera Milano, Roland Berger

Continued effort to be on the edge concerning fighting corruption and sustainable supply chain management

ESG Strategy and actions - Fighting Corruption; Human Rights & Sustainable SCM

4 Fighting Corruption

Develop and enforce policies to fight active and passive corruption

• Anti-corruption guidelines abroad

• Integrity due diligence for Italian and foreign suppliers

• Training for employees on anticorruption guidelines

• Definition and implementation of further processes such as anticorruption safeguards

5 Human Rights and Sust. SCM

• Prefer suppliers fulfilling ESG criteria

• Continuously combat undeclared and irregular work

• Optimization of the procedural framework

• Evolution of supplier qualification process considering fulfillment of ESG criteria

• Memorandum of understanding to prevent and combat undeclared and irregular work

• Reputational assessment and qualification process to Italian and foreign suppliers

• Implementation of the protocol and continuous commitment to combating the phenomenon of undeclared and irregular thirdparty work, and training on the subject

• Further improvement of supplier monitoring

Source: Fiera Milano, Roland Berger

Thanks for your attention