Fiera Milano

Investor Presentation • Nov 11, 2020

CONFERENCE CALL – 11 November 2020

FIERA MILANO GROUP 3 rd Quarter 2020 Consolidated Results

1. Highlights 2. Financial results 3. Business outlook

Highlights 1.0

Q3 and 9M20 results were affected by the prolonged suspension of exhibition activities from 23 February due to the Covid-19 pandemic.

Events resumed in September but with lower attendance figures.

1.1 Highlights

9 Months 2020

• 9M20 revenues of Euro 67.3 million (Euro 183.9 million in 9M19)
• 9M20 EBITDA: Euro 4.7 million (Euro 64.4 million in 9M19)
• 9M20 EBIT: Euro -28.9 million (Euro 30.4 million in 9M19)
• 9M20 Pre-tax result: Euro -38.8 million (Euro 20.3 million in 9M19)
• Net debt (pre-IFRS 16) Euro 13.5 million at 30 June 2020 (net cash 20.2 million at 30 June 2020 and 68.3 million at 31 December 2019)

Q3 2020

• Q320 revenues of Euro 11.3 million (Euro 30.1 million in Q319)
• Q320 EBITDA: Euro -5.8 million (Euro 2.0 million in Q319)
• Q320 EBIT: Euro -17.0 million (Euro -9.2 million in Q319)
• Q320 Pre-tax result: Euro -20.2 million (Euro -12.4 million in Q319)
• Net exhibition space occupied in Italy: 63,290 square metres (6% from directly organised exhibitions), compared to 158,105 square metres in Q319

1.2 Events after the end of the period

• Prime Ministerial Decree (DPCM) of 18 October stopped conventions and congresses (excluding those that are held remotely).

• Prime Ministerial Decree (DPCM) of 24 October stopped all trade fairs (both domestic and international events).
• Prime Ministerial Decree (DPCM) of 3 November extended the suspensions of all exhibition activities until 3 December.
• Fiera Milano is preparing a new business plan to adapt its growth and development pathway to the changing scenario and to be able to compete successfully in the "New Normal".
• The plan will be presented to the market in early 2021.

Development of a new business plan

New suspension of exhibition activity (both trade fairs and congresses) until 3 December 2020

Financial results 2.0

• Suspension of activity in July and August.
• The exhibitions held in Italy in September were of reduced size and showed lower attendance (in terms of exhibitors, visitors, etc.) compared to their previous editions.

Italian Exhibition Business (€m)	3Q20	3Q19	9M20	9M19
Revenues	10.3	22.9	59.7	152.1
EBITDA	(4.4)	(0.6)	7.4	51.7
% on revenues	neg.	neg.	12.5%	34.0%
EBIT	(14.2)	(10.4)	(22.1)	21.7
% on revenues	neg.	neg.	neg.	14.3%

2.2 Italian Exhibition Business

• The year-on-year trend in revenues was affected by the suspension of exhibition activities from the end of February to the beginning of September, which led to several cancellations (e.g. Salone del Mobile, Mido, Mostra Convegno Expocomfort) and the absence of biennial exhibitions (Tuttofood, Made and Transpotec Logitec).
• Activities resumed in September with 7 exhibitions (of which 6 were physical events) but with reduced size and attendance.
• The change in EBITDA was primarily related to the trend in revenues, partially offset by actions taken to reduce the cost base.

Foreign Exhibition Business (€m)	3Q20	3Q19	9M20	9M19
Revenues	0.0	0.2	1.1	3.3
EBITDA	(0.1)	1.0	(1.1)	3.5
% on revenues	neg.	n.m.	neg.	104.9%
EBIT	(0.1)	0.9	(1.3)	3.1
% on revenues	neg.	n.m.	neg.	94.4%

2.3 Foreign Exhibition Business

• The year-on-year trend in revenues mainly reflected the impact of Covid-19 on the Brazilian exhibition calendar.
• EBITDA was affected by lower results from the joint venture activities in China, where exhibitions resumed in August.

Media (€m)	3Q20	3Q19	9M20	9M19
Revenues	1.3	1.9	4.7	7.7
EBITDA	(0.3)	(0.1)	(0.1)	0.7
% on revenues	neg.	neg.	neg.	8.8%
EBIT	(0.3)	(0.2)	(0.1)	0.5
% on revenues	neg.	neg.	neg.	6.6%

2.4 Media

• The change in revenues was mainly related to lower billboard and technical publications revenues, due to both cancelled fairs and the reduced size of the exhibitions held.
• The change in EBITDA primarily reflected the trend in revenues.

9M19
27.3
8.6
31.4%
5.0
18.4%

Congresses

• The year-on-year trend in revenues and EBITDA reflected the change in the congress calendar caused by the Covid-19 emergency, with several events postponed to 2021.

2.6 Net financial position

The change in net financial position was mainly due to the suspension of exhibition activities and subsequent lower advanced payments

31/12/2019	Consolidated Net Financial Position (€m)	30/09/2020	30/06/2020
68.0	Cash & cash equivalents	27.6	39.2
1.3	Current financial assets	1.3	1.7
0.0	Current bank borrowings	35.0	24.9
0.0	Current portion of non-current debt	0.0	0.0
1.1	Other current financial liabilities	12.3	0.4
1.1	Current financial debt	47.3	25.4
(68.3)	Net current financial debt (cash)	18.4	(15.5)
0.1	Non-current financial assets	0.1	0.1
0.0	Other non-current payables	0.0	0.0
(0.1)	Non-current financial debt	(4.8)	(4.7)
(68.3)	Net financial debt (cash) before IFRS 16 effects	13.5	(20.2)
473.4	IFRS 16 financial effects	462.1	469.8
405.1	Net financial debt/(cash) after IFRS 16 effects	475.6	449.6

Business outlook 3.0

3.1 Business outlook

• Although September saw the resumption of in -person events, the worsening of the health emergency due to a rapid rise in Covid -19 cases in Italy and elsewhere has led to new restrictions being put in place.
• In Italy, recent government regulations initially confirmed the possibility of holding exhibitions and congresses but subsequently suspended conventions and congresses (except if held remotely) and then all exhibitions.
• Against this highly uncertain and changeable environment, the Company has taken further cost reduction actions affecting both site management and staff, and through widespread adoption of remote working.
• The adoption of these measures, together with the effect of the probable reduction in rents for the Rho and Milan sites, subject to negotiation with Fondazione Fiera Milano, will make it possible to have a positive impact on the result for the current year .

Data and information herewith set forth are extracted from the Fiera Milano Press Release relating to Consolidated Interim Management report to 30 September 2020 filed with the Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation.

This document has been prepared by Fiera Milano S.p.A. 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 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 forwardlooking 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 results 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.

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.

Forward-looking statement

For further information, please contact: Investor Relations Department Tel +39 02.4997.7816/7911 email: investor.relations@fieramilano.it

Fiera Milano S.p.A. S.S. del Sempione 28 20017 Rho (Milano) - Italia www.fieramilano.it

BACK-UP

Financial overview – Income Statement

Revenues	11.3	30.1	67.3
Cost of materials	0.3	0.3	1.6
Cost of services	9.3	18.9	38.6
Costs for use of 3rd-party assets	0.1	0.1	0.3
Personnel expenses	7.3	10.3	24.5
Other operating expenses	0.6	0.5	1.9
Total operating costs	17.5	30.1	66.9
Other income	0.5	0.6	1.7
Results of equity-accounted companies	(0.0)	1.5	(0.8)
Allowance for doubtful accounts an other provisions	0.1	(0.0)	(3.4)
EBITDA	(5.8)	2.0	4.7
Depreciation and amortisation	11.1	11.2	33.6
Adjustments to asset values	0.0	0.0	0.0
EBIT	(17.0)	(9.2)	(28.9)
Financial income/(expenses)	(3.2)	(3.3)	(10.0)
Valuation of financial assets	0.0	0.0	0.0
Profit/loss before income tax	(20.2)	(12.4)	(38.8)
o/w attributable to the shareholders of the controlling entity	(20.1)	(12.4)	(38.6)

Financial overview – Reclassified Statement of Financial Position

31/12/2019
	Reclassified Consolidated Statement of Financial Position (€m)	30/09/2020	30/06/2020
622.5	Non-current assets	590.4	604.0
(87.7)	Net working capital	(35.1)	(52.9)
534.8	Gross capital employed	555.3	551.2
21.9	Non current liabilities	20.9	16.4
512.9	Total net capital employed	534.5	534.8
107.9	Equity (*)	58.9	85.2
405.1	Net financial position	475.6	449.6
512.9	Equity and net financial position	534.5	534.8