Fiera Milano

Earnings Release • Jul 31, 2019

FIERA MILANO GROUP 1 st Half 2019 Consolidated Results

CONFERENCE CALL – 31 July 2019

Highlights

Financial Results

Business outlook

HIGHLIGHTS

In the first half 2019, the positive business performance, far higher than the 2017 comparable period, significantly offset the less favourable exhibition calendar of the period

Key figures (€m)	1H19	of which IFRS 16 impact	1H18	1H17
Revenues	153.9		157.7	133.9
EBITDA	62.4	24.2	46.1	11.9
EBIT	39.6	4.0	43.1	8.4
Profit	24.1	(2.2)	31.7	5.6

Key figures (€m)	30/06/19	31/12/18	31/12/17
Net cash (pre-IFRS16)	(58.0)	(23.7)	0.8

Income statement and statement of financial position figures for the first half 2019 included the effects of the new accounting standard IFRS 16 – Leases

ACHIEVEMENTS

• On 17 July 2019 Fiera Milano signed a preliminary binding contract for the acquisition of 60% of the company MADE Eventi S.r.l., organiser of the international biennial architecture and construction exhibition MADE expo
• On 9 July 2019 the exhibition trademark Cartoomics, in the comics, gaming and entertainment sector, was acquired
• On 29 May 2019 Fiera Milano and the Controlling Shareholder Fondazione Fiera Milano, owner of the exhibition sites, signed an agreement for the rental fee of the fieramilanocity exhibition site regarding a Euro 1.5 million/year reduction, on the previous rental fee of Euro 2.9 million a year, starting from 1 June 2019
• As part of the plan to streamline the Group's corporate structure, on 6 June 2019, a deed was drawn up for the reverse merger of the Brazilian subsidiary Eurofairs International Consultoria e Participações Ltda, into its 100% owned subsidiary CIPA Fiera Milano Publicações e Eventos Ltda

ITALIAN EXHIBITIONS

• Annual exhibitions: absence of ENCI winner and Tempo di Libri
• Biennial exhibitions: presence of Tuttofood and absence of Mostra Convegno Expocomfort
• Multi-year exhibitions: absence of The Innovation Alliance

ITALIAN EXHIBITION BUSINESS

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Italian Exhibition Business	1H19	1H18
Revenues (€m)	129.2	138.6
EBITDA (€m)	52.3	43.0
% on revenues	40.5%	31.0%
EBIT (€m)	32.2	41.1
% on revenues	24.9%	29.6%

• The trend of revenues is mainly attributable to the exhibition calendar
• The trend of EBITDA is primarily related to the IFRS 16 effect (Euro 22.2 million) and to the good commercial performance that has partially compensated the effects of the less favorable exhibition calendar in the period under review

FOREIGN EXHIBITION BUSINESS

Foreign Exhibition Business	1H19	1H18
Revenues (€m)	3.1	2.7
EBITDA (€m)	2.5	1.8
% on revenues	80.7%	68.5%
EBIT (€m)	2.3	1.6
% on revenues	73.2%	61.0%

• 13 exhibitions (12 in 1H18) and 171,225 net square metres of exhibition space in 1H19 (148,955 square metres in 1H18)
• The trend in revenues reflected the presence of the biennial exhibition Reatech in Brazil
• Margins benefitted from the higher results of the Chinese joint venture

Media	1H19	1H18
Revenues (€m)	5.8	6.2
EBITDA (€m)	0.8	0.7
% on revenues	14.1%	10.8%
EBIT (€m)	0.7	0.5
% on revenues	12.1%	8.7%

• The trend in revenues was mainly attributable to lower billboard advertising because of the different exhibition calendar
• The improvement in margins was mainly due to the optimization of costs for producing technical publications

CONGRESSES

Congresses	1H19	1H18
Revenues (€m)	21.2	15.5
EBITDA (€m) % on revenues	6.8 32.0%	0.6 3.9%
EBIT (€m)	4.4	(0.1)
% on revenues	20.8%	-0.5%

• The year-on-year increase in revenues reflected the presence of important international congresses
• EBITDA benefitted from the improvement in revenues and the IFRS 16 effect (Euro 1.9 million)

NET FINANCIAL POSITION

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

The improvement in the net financial position pre-IFRS16 is attributable to the positive cash flow in the period and advances for exhibitions that will take place in later months, partially offset by the dividend payment

Business outlook

BUSINESS OUTLOOK

• The results of the first semester, and especially of the second quarter, were ahead of expectations
• With reference to the second half, it should be noted that the third quarter will feature the normal suspension of exhibition activity in the summer months and the postponement of an important biannual exhibition to October
• In the fourth quarter the business performance is estimated to be very positive also thanks to the presence of the biennial organized exhibition HOST, that is expected to reach a new record edition
• The results of the first semester and the expected performance of operations in the second semester have led to an upgrade of the forecast for full-year EBITDA: this is now expected to be in the range of Euro 96-100 million, compared to the previously communicated target of Euro 84-88 million

FORWARD-LOOKING STATEMENT

Data and information herewith set forth are extracted from the press release relating to Fiera Milano Consolidated Half-Year Financial Report to 30 June 2019 filed with the Italian authorities regulating exchanges and securities and disseminated concomitantly with this presentation.

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 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 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.

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

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

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FINANCIAL OVERVIEW – INCOME STATEMENT

Consolidated Income Statement (€m)	1H19	1H18
Revenues	153.9	157.7
Cost of materials	1.4	1.5
Cost of services	66.6	64.7
Costs for use of 3rd-party assets	0.3	25.5
Personnel expenses	24.2	23.2
Other operating expenses	2.5	2.4
Total operating costs	95.0	117.2
Other income	1.3	1.9
Results of equity-accounted companies	2.4	4.3
Allowance for doubtful accounts and other provisions	0.2	0.5
EBITDA	62.4	46.1
Depreciation and amortisation	22.8	3.0
Adjustments to asset values	0.0	0.0
EBIT	39.6	43.1
Financial income/(expenses)	(6.8)	(0.0)
Valuation of financial assets	0.0	0.0
Profit before income tax	32.7	43.1
Income tax	8.6	11.4
Profit	24.1	31.7
of which attributable to Shareholders of the controlling entity	24.1	31.8

FINANCIAL OVERVIEW – STATEMENT OF FINANCIAL POSITION

Consolidated Statement of Financial Position (€m)	30/06/19	31/12/18
Non-current assets	636.9	148.4
Net working capital	(91.5)	(73.1)
Gross capital employed	545.3	75.3
Non-current liabilities	17.2	16.9
Total net capital employed	528.2	58.4
Equity	96.9	82.1
Net financial position	431.3	(23.7)
Equity and net financial position	528.2	58.4