Fiera Milano

Investor Presentation • Apr 11, 2019

Fiera Milano Group Mid & small in London

London, 11 April 2019

Index

1.0 Group overview 2.0 Strategic Plan 2018–2022 3.0 Financial overview 4.0 Closing remarks

1.0

Group overview

Fiera Milano is the market leader in Italy and one of the world's leading operators across the entire value chain of the exhibition industry

Italian Exhibitions

Fiera Milano organises proprietary exhibitions providing exhibition space and services directly to exhibitors; it also uses exhibition sites to host exhibitions for third parties

Congresses

Management of one of most modern convention centre in Europe and the only one capable of hosting up to 18,000 delegates

Hospitality

Assisting its customers travel arrangements through accommodation services, site location, flight tickets, Visa procedures, transfers, train tickets

Stand fitting services

Concept design & engineering, exhibitions & booths, including shell scheme area, lounges, public space and outdoor structures

Media

Online and offline content and publishing services, management courses, event organisation

Foreign Exhibitions

Outside domestic market, organiser of exhibitions in Brazil, South Africa and China

1.1 An integrated business model

Figures refer to FY2018

35,615 Exhibitors

of which 7,750 abroad

169

Congresses

271,246 participants

79 Exhibitions of which 27 abroad

127

Number of training events

12

Number of publishing portal

399,000 sqm

Gross Exhibition Capacity

345,000 sqm fieramilano 54,000 sqm fieramilanocity

1.2 Fiera Milano highlights

31.9 million

Consolidated EBITDA

360,000 sqm

Stand fitted and furnished

696

Group permanent employees

of which 97 abroad

1,972,175 sqm

Net Exhibition Space Occupied

of which 466,795 sqm abroad

10 (570,000 copies)

Number of technical publications

247 million

Consolidated revenues

1.3

Key milestones of Fiera Milano Group to date

2015

Expo Milano

Fiera Milano acquires Ipack-Ima and supports Expo 2015

2008 2012

Internationalization

Fiera Milano expands in international markets, entering the Indian, Chinese, South African, Brazilian and Russian markets

2018

Strategic Plan

Fiera Milano presents the 2018-2022 Strategic Plan

1.4 Strong position worldwide

The number one exhibition entity in Italy and one of the main exhibition entities worldwide in terms of gross indoor exhibition space

1.4 Strong position worldwide

* Source: UFI – December 2018 ** Source: AMR International Globex Report 2018

Top exhibition sites worldwide*

('000 sqm)

Top exhibition companies in Italy** ('000 sqm)

Exhibition	Industry	Frequency	Sq. Meters	Number of exhibitors
Salone del Mobile / Eurocucina / Salone del Bagno	Furniture and furnishing	Annual/Biennial	220,440	1,360
HOST	Horeca	Biennial	137,005	2,060
The Innovation Alliance	Processing and packaging machinery	Multi-year	136,435	2,515
The MICAM (Spring and Autumn)	Textile, clothing & accessories	Biannual	125,895	2,635
HOMI (I and II semester)	Homeware and gift	Biannual	121,165	2,445
EMO	Industrial machinery	Multi-year	116,995	1,540
Mostra Convegno Expocomfort	Building and related furniture	Biennial	115,400	1,570
ITMA	Textile machinery	Multi-year	109,570	1,690
Eicma Moto	Vehicles and related equipment	Annual	101,770	560
Lineapelle (I and II semester)	Leather	Biannual	98,245	2,260
Tuttofood	Food	Biennial	64,770	1,235
Artigiano in fiera	Art and crafted products	Annual	59,170	1,540

Italian exhibitions portfolio: main events

* Data based on most recent exhibitions hosted prior to 31 December 2018

1.6 Exhibition portfolio

A well diversified PORTFOLIO OF EXHIBITIONS, almost entirely B2B

The Group is strong in DYNAMIC MARKETS (with sound growth expectations and where the "Made in Italy" label has appeal)

Industrial machinery 14.1%

Art and crafted products 3.6%

Commerce - Services 9.7%

Textiles, clothing & accessories 20.0%

Others 2.6%

Food - Catering 3.6% Vehicles and related equipment 8.2%

Building - plant design - energy 9.0%

Furniture and furnishing 14.0%

Homeware and gifts 7.2%

Tourism - Sport - Leisure 8.0%

1.7 Shareholder structure

Market Float 28.4%

Treasury shares 1.3%

Camera di Commercio Metropolitana di Milano-Monza-Brianza-Lodi 6.5%

Ente Autonomo Fiera Internazionale di Milano 63.8%

Fondazione Fiera Milano is a non-profit private law foundation, whose corporate mission is the development of the exhibition sector in Italy and abroad

* Advance payments (on average 6 months ahead for annual and 12 months ahead for biennial events)

1.8 Long Term Visibility and Favourable Payment Cycle

High visibility on revenues due to long-term contracts with organisers

Main financial clauses in the contractual agreements with organisers:

• standard contract guarantee (minimum guaranteed)
• significant advance payments
• treasury management services on behalf of organisers

The Group has structural negative NWC

1.9 A big impact in the Italian economy

Effect generated by Fiera Milano: € 6.6 billion

This is the effect associated to suppliers, investments, payments of salaries and the expenses of the exhibitors and the visitors/delegates associated with the exhibitions

Contribution to public budget: € 1.5 billion

This is direct, indirect and induced contribution to the public budget through different taxes: VAT, Income tax, tax on profits and other taxes

Source: "Study of the socio-economic impact, Fiera Milano" - March 2019 KPMG, on 2017 data

€ 8.1 billion

Total impact of Fiera Milano

€ 4.3 billion of which in Lombardy

1.10 Our CSR commitment

Maximisation of energy efficiency in the management of venues

Reduction of environmental impacts of the Group

Raising security and control levels in order to protect the safety, health and integrity of the exhibition sites users

CEO and board level responsibility

Individual performance plan of top management linked to at least one CSR goal

Promote change management

Continuous promotion of culture and dissemination of ethics, legality and anti-corruption

2.0

2.1 Global exhibition market 2013-2022 Exhibition market expected to grow at 5% CAGR

* Emerging include: Brazil, China, Gulf Cooperation Council, India, Indonesia, Mexico, Russia, Turkey, Hong Kong Note: Totals exclude SEA countries (Singapore, Malaysia, Thailand, Philippines, Vietnam, Macau) Source: AMR International Globex report 2018

2.2 Three emerging macro-trends in the exhibition market

Leadership in industry sector at regional level is a key success factor

• Exhibitors and visitors increasingly tend to attend only tier 1 exhibitions
• As a consequence, consolidation trend accelerating among key market players

Increased use of digital products to complete exhibition offer

• Driving customer understanding
• Only secondary source of revenue

Growing share of business for key players from events outside domestic market

• Leveraging on geo-cloning of successful domestic exhibitions

2.3 Three principles inspired definition of Strategic Plan

Maximize venue potential

Invest on core industry sectors

Build on human capital

2.4 Fiera Milano Group strategy

Enrich portfolio of hosted exhibitions & congresses

• Attract new leading/high potential exhibitions
• Support organizers to expand their exhibitions
• Optimize saturation with new activities
• Attract leading congresses

Capture full potential of services

• Boost stand fitting
• Push Destination management
• Expand media services

Create a smarter venue

• Full service, eco-compatible and innovative infrastructure

Grow portfolio of leading owned exhibition

• Foster Host & Tuttofood
• Strengthen HOMI
• Leverage organic growth
• Develop attractive niches

Expand international exhibitions

• Develop geo-clones of top owned brands leveraging partnerships (Focus on China)

Step up organization

• Enhanced organization, empowered governance and integrated systems

2.5 Key ambition enabler

Safe & Smart Distric

• Highest safety standards
• Data-rich venue

Environmental Sustainability & Innovation

• Best-in-class sustainable venue (eg. solar roof coverings)

Operational Excellence

• Maximum accessibility for suppliers,

exhibitors & visitors

Enhanced Customer Experience

• Shortest time to customer
• Seamless customer experience

~€100m investment plan by the controlling shareholder FONDAZIONE FIERA MILANO to enhance the venue

2.6 FMG Strategic Plan vs. recent trend

Strategic targets do not reflect and/or include any effect from M&A activity

Strategic Plan target € 260-280m average revenue and € 28-32m average EBITDA for next 5 yers

2.7 Strategic Plan will evolve in line with FMG seasonality

Yearly Net Profit expected positive throughout period of StrategicPlan

* Net of International sqm ** € 84-88 million following the application of IFRS 16 as of 1 January 2019

2.8 2018 achievements

Growth in economic and financial results

Profit: 0.7% to 7.5% ('17 vs. '18) Recurring costs addressed +5pp profitability through efficiencies Net cash 23.7 million as at 31 December 2018 Return to dividend: € 0.13 per share proposed to the Shareholders' meeting

New guidance and organization

Guiding Principles

• One group
• People engagement
• Execution exellence
• Market focus

Successful track record of key recent events

In 2018 successful first edition of The Innovation Alliance (150,000 visitors of which 27% international) CPHI in Milan in 2020 Return to the STAR segment on 30 April 2018 FMG Stock performance +162%* vs. end 2017

International footprint rationalized

Restructuring plan launched in Brazil Recovery in profitability in South Africa Strengthening of the Chinese portfolio through the acquisition of new exhibitions Launch of the new E-PACK TECH event, dedicated to e-commerce packaging in China

3.1 Income statement

* The figures for 2017 reflect the application of the new standard IFRS 15 from 1 January 2018

=17 restated*
256.3
3.2
133.3
49.9
48.9
5.4
240.7
2.6
2.6
5.8
15.1
6.8
2.9
5.4
(0.8)
0.0
4.6
2.9
1.7
1.6

Consolidated Income Statement (€m)	FY18	F17 restated*
Revenues	247.2	256.3
Cost of materials	2.4	3.2
Cost of service	114.1	133.3
Cost for use of 3rd-party assets	50.3	49.9
Personnel expenses	47.0	48.9
Other operating expenses	4.5	5.4
Total operating costs	218.4	240.7
Other income	2.8	2.6
Results of equity-accounted companies	5.2	2.6
Allowance for doubtful accounts and other provisions	5.0	5.8
EBITDA	31.9	15.1
Depreciation and amortisation	5.9	6.8
Adjustments to asset values	0.9	2.9
EBIT	25.1	5.4
Financial income/(expenses)	(0.1)	(0.8)
Valuation of financial assets	(0.0)	0.0
Profit/loss before income tax	24.9	4.6
Income tax	6.4	2.9
Profit/loss	18.6	1.7
of which attributable to Shareholders of the controlling entity	18.8	1.6

3.2 Statement of financial position

Consolidated Statement of Financial Position (€m)	31/12/18	31/12/17
Non-current assets	148.4	151.5
Net working capital	(73.1)	(74.3)
Gross capital employed	75.3	77.3
Non-current liabilities	16.9	13.4
Total net capital employed	58.4	63.8
Equity	82.1	63.0
Net financial position	(23.7)	0.8
Equity and net financial position	58.4	63.8

4.1 Closing remarks

We have a strong leadership trust

• We have a clear definition of the ingredients for our success

We are ahead in the execution of our strategic plan

• We have completed the turnaround process, started our investments and are strengthening our portfolio of exhibitions

We will not be caged by our venue

• We'll seek most promising opportunities

where they are

We take our social responsibility seriously

• We will actively ensure our business will have a sustainable impact

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 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.