Fiera Milano

Investor Presentation • Nov 14, 2019

CONFERENCE CALL – 14 November 2019

FIERA MILANO GROUP 3 rd Quarter 2019 Consolidated Results

1. Highlights 2. Financial Results 3. Business outlook

Highlights 1.

Key figures (€m)	9M19	of which IFRS 16 impact	9M18	9M17
Revenues	183.9		193.3	177.4
EBITDA	64.4	36.0	41.1	0.7
EBIT	30.4	5.9	36.6	(4.5)
Profit/loss before income tax	20.3	(4.4)	36.5	(5.3)

1.1 Highlights

The 3 rd Quarter includes a structurally weak period for the exhibition business since activities stop in Italy during the summer months

• Compared to 2018, postponement of an important exhibition to the last quarter 2019, partially offset by a positive business performance of congresses
• Improvement of results compared to 2017, a comparable period for the exhibition calendar

In the first nine months 2019

• A different exhibition calendar compared to 2018, partially offset by good performance of business
• Well-performing business together with cost reductions compared to 2017, a comparable period

Key figures (€m)	3Q19	of which IFRS 16 impact	3Q18	3Q17
Revenues	30.1		35.6	43.5
EBITDA	2.0	11.8	(5.0)	(11.2)
EBIT	(9.2)	1.9	(6.5)	(12.9)
Profit/loss before income tax	(12.4)	(1.4)	(6.5)	(13.0)

Financial Results 2.

Exhibitions (Net sq. Metres)	3Q19	3Q18
Directly organised	33,255	40,145
Organised by 3rd parties	116,620	156,210
Total annual exhibitions	149,875	196,355
Total exhibitions	149,875	196,355
Congresses with related exhibition area	8,245	11,675
Total	158,120	208,030

2.1 Italian Exhibitions

• Traditional suspension of business activities in July and August
• Postponement of Lineapelle to the 4Q

Italian Exhibition Business	3Q19	3Q18	9M19	9M18
Revenues (€m)	22.9	29.1	152.1	167.7
EBITDA (€m)	(0.6)	(5.7)	51.7	37.3
% on revenues	-2.6%	-19.5%	34.0%	22.2%
EBIT (€m)	(10.4)	(6.7)	21.7	34.4
% on revenues	-45.5%	-22.8%	14.3%	20.5%

2.2

Italian Exhibition Business

• The year-on-year change in quarterly revenues and results mainly reflected the exhibition calendar; the IFRS 16 effect on EBITDA is equal to Euro 10.8 million
• The year-on-year trend in revenues and margins in the first nine months is primarily related to the different exhibition calendar (absence of The Innovation Alliance, Mostra Convegno Expocomfort, Lineapelle, partially offset by the presence of Tuttofood and Made Expo) and the commercial growth of exhibitions, together with higher sales of ancillary services; the IFRS 16 effect on EBITDA is equal to Euro 32.9 million

Foreign Exhibition Business	3Q19	3Q18	9M19	9M18
Revenues (€m)	0.2	2.3	3.3	5.0
EBITDA (€m)	1.0	2.1	3.5	3.9
% on revenues	461.3%	89.9%	104.9%	78.4%
EBIT (€m)	0.9	2.0	3.1	3.6
% on revenues	406.6%	86.0%	94.4%	72.6%

2.3

Foreign Exhibition Business

• 147,445 net square metres of exhibition space covered in 3Q19 (157,050 square metres in 3Q18) because of the absence of the biennial exhibition Fesqua in Brazil
• The year-on-year change in quarterly revenues and margins mainly reflected the exhibition calendar in Brazil
• In the first nine months of the year, the year-on-year change in revenues was mainly due to the Brazilian business; EBITDA benefited from higher results of the Chinese subsidiary

Media	3Q19	3Q18	9M19	9M18
Revenues (€m)	1.9	2.3	7.7	8.5
EBITDA (€m)	(0.1)	0.1	0.7	0.7
% on revenues	-7.1%	3.0%	8.8%	8.7%
EBIT (€m)	(0.2)	0.0	0.5	0.5
% on revenues	-10.0%	0.2%	6.6%	6.4%

2.4 Media

• The year-on-year change in revenues and results for the quarter was due to the different exhibition calendar and lower training events
• Results for the first nine months of 2019 benefited from the optimization of costs for producing technical publications

Revenues (€m)	6.2	3.3	27.3	18.8
EBITDA (€m)	1.8	(1.5)	8.6	(0.9)
% on revenues	29.4%	-45.2%	31.4%	-4.7%
EBIT (€m)	0.6	(1.8)	5.0	(1.9)
% on revenues	10.0%	-55.5%	18.4%	-10.2%

• The year-on-year increase in quarterly revenues and results mainly reflected the presence of The Lions international convention; the IFRS 16 effect on EBITDA is equal to Euro 1.0 million
• The year-on-year increase in first nine month revenues and results was due to the presence of international congresses and conventions; the IFRS 16 effect on EBITDA is equal to Euro 2.9 million

2.6 Net Financial Position

		31/12/18	Consolidated Net Financial Position (€m)	30/09/19	30/06/19
		28.4	Cash & cash equivalents	51.6	57.8
		0.0	Current financial assets	1.4	2.3
		0.0	Current bank borrowings	0.0	0.0
		3.5	Current portion of non-current debt	0.8	1.5
		1.3	Other current financial liabilities	0.6	0.6
		4.8	Current financial debt	1.4	2.1
		(23.6)	Net current financial debt (cash)	(51.7)	(57.9)
		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	(0.1)	(0.1)
		(23.7)	Net financial debt (cash) before IFRS 16 effects	(51.7)	(58.0)
		0.0	IFRS 16 financial effects	481.0	489.3
		(23.7)	Net financial debt/(cash) after IFRS 16 effects	429.3	431.3
	months
11

The net financial position pre-IFRS16 improved compared to the end of 2018 mainly as a result of the positive operating cash flow in the period, and decreased compared to the end of June 2019 due to the lack of events in the summer months

Business outlook 3.0

3.1 Business Outlook

• The positive operating performance was also confirmed by exhibitions held in Italy after the end of the quarter, particularly the biennial HOST exhibition The favourable trend in exhibitions allows the 2019 EBITDA to be estimated in the upper part of the range, announced previously, of Euro 96-100 million
• With reference to business forecasts for 2020 in the 2018-2022 Strategic Plan, the positive implementation of the plan allowed the target EBITDA to be raised in the range of Euro 71-75 ¹ million, compared to the previous range of Euro 61-65 ² million

¹The new target includes the effect of suspension of the costs of personnel involved in biennial and multi-year directly organised exhibitions, whose estimated value is around Euro 2 million

Data and information herewith set forth are extracted from the Fiera Milano Consolidated Interim Management Report to 30 September 2019 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

Revenues	30.1	35.6	183.9	193.3
Cost of materials	0.3	0.4	1.7	1.9
Cost of services	18.9	19.2	85.5	83.9
Costs for use of 3rd-party assets	0.1	12.4	0.4	37.8
Personnel expenses	10.3	10.4	34.5	33.6
Other operating expenses	0.5	0.6	3.0	3.0
Total operating costs	30.1	42.9	125.1	160.2
Other income	0.6	0.2	1.9	2.1
Results of equity-accounted companies	1.5	2.5	3.9	6.8
Allowance for doubtful accounts and other provisions	0.0	0.4	0.2	1.0
EBITDA	2.0	(5.0)	64.4	41.1
Depreciation and amortisation	11.2	1.5	34.0	4.5
Adjustments to asset values	0.0	0.0	0.0	0.0
EBIT	(9.2)	(6.5)	30.4	36.6
Financial income/(expenses)	(3.3)	(0.0)	(10.1)	(0.1)
Profit/loss before income tax	(12.4)	(6.5)	20.3	36.5

Consolidated Income Statement (€m)	3Q19	3Q18	9M19	9M18
Revenues	30.1	35.6	183.9	193.3
Cost of materials	0.3	0.4	1.7	1.9
Cost of services	18.9	19.2	85.5	83.9
Costs for use of 3rd-party assets	0.1	12.4	0.4	37.8
Personnel expenses	10.3	10.4	34.5	33.6
Other operating expenses	0.5	0.6	3.0	3.0
Total operating costs	30.1	42.9	125.1	160.2
Other income	0.6	0.2	1.9	2.1
Results of equity-accounted companies	1.5	2.5	3.9	6.8
Allowance for doubtful accounts and other provisions	0.0	0.4	0.2	1.0
EBITDA	2.0	(5.0)	64.4	41.1
Depreciation and amortisation	11.2	1.5	34.0	4.5
Adjustments to asset values	0.0	0.0	0.0	0.0
EBIT	(9.2)	(6.5)	30.4	36.6
Financial income/(expenses)	(3.3)	(0.0)	(10.1)	(0.1)
Profit/loss before income tax	(12.4)	(6.5)	20.3	36.5
of which attributable to Shareholders of the controlling entity	(12.4)	(6.4)	20.3	36.8

Financial overview – Income Statement

Consolidated Statement of Financial Position (€m)	30/09/19	31/12/18
Non-current assets	630.2	148.4
Net working capital	(90.7)	(73.1)
Gross capital employed	539.5	75.3
Non-current liabilities	17.1	16.9
Total net capital employed	522.4	58.4
Equity	93.1	82.1
Net financial position	429.3	(23.7)
Equity and net financial position	522.4	58.4

Financial overview – Statement of Financial Position