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Fiera Milano

Investor Presentation Nov 19, 2018

4073_ip_2018-11-19_cd64ef9d-9c7f-4d3b-b0c8-5dde3b2f5170.pdf

Investor Presentation

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Mid & Small in Milan

FIERA MILANO GROUP

Milan, 19 November 2018

Strategic Plan 2018-2022

Closing remarks

INTEGRATED BUSINESS MODEL

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, China and India

FIERA MILANO HIGHLIGHTS

Total gross exhibition capacity 399,000 sqm of which 345,000 sqm fieramilano site 54,000 sqm fieramilanocity site

Net exhibition space occupied 1,888,965 sqm of which 371,760 sqm abroad

Number of exhibitions 83 of which 29 abroad

Number of exhibitors 36,385 of which 8,600 abroad

Consolidated revenues* Euro 256 million (+24% vs. 2016)

Group permanent employees 693 of which 100 abroad

Group overview

Congresses 165 congresses 345,000 participants

Number of training events 114

Number of technical publications 10 (580,000 copies)

Number of publishing portals

10

Stand fittings

160,000 sqm fitted and furnished

KEY MILESTONES OF FIERA MILANO GROUP TO DATE

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

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

ITALIAN EXHIBITION PORTFOLIO: MAIN EVENTS

Exhibition Industry Frequency Sq. Meters Number of
exhibitors
Salone
del Mobile / Eurocucina
/ Salone
del Bagno
Furniture and furnishing Annual/Biennial 220,415 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 125,995 2,635
HOMI (I and II semester) Homeware and gift Biannual 121,165 2,455
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 109,160 695
Lineapelle
(I and II semester)
Leather Biannual 99,340 2,260
Tuttofood Food Biennial 64,770 1,235
Made Expo Architecture, design and building Biennial 52,515 800

MICO WELL-RANKED AMONG TOP EUROPEAN CONGRESSES PLAYERS

Exhibitions

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)

9

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

Ente Autonomo Fiera Internazionale di Milano Camera di Commercio Metropolitana di Milano-Monza-Brianza-Lodi Treasury shares Market Float 63.8% 6.5% 1.3% 28.4%

Group overview

Updated as at 23 April 2018

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

GLOBAL EXHIBITION MARKET 2011-2021

Exhibition market expected to keep growing at 4% CAGR

  1. 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); SEA countries market data available only for 2016 (0.6\$b) and forecasts for 2021 (0.9\$b) Note: EUR / \$ fixed 2016 = 0.904 Source: AMR international Globex report 2017

13

THREE EMERGING MACRO-TRENDS IN THE EXHIBITION MARKET

Exhibition market Digital and value added services Leadership in industry sector at regional level is a key success factor Growing share of business for key players from events outside domestic market • Leveraging on geo-cloning of successful domestic exhibitions • 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

THREE PRINCIPLES INSPIRED DEFINITION OF STRATEGIC PLAN

Maximize venue potential

Invest in core industry sectors

Build on human capital

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

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 & USA)

Create a smarter venue Step up organization

• Full service, eco-compatible and innovative infrastructure

• Enhanced organization, empowered governance and integrated systems

KEY AMBITION ENABLER

~€100M INVESTMENT PLAN BY THE CONTROLLING SHAREHOLDER FONDAZIONE FIERA MILANO TO ENHANCE THE VENUE

Safe & Smart District

Data-rich venue Highest safety standards

Environmental Sustainability & Innovation

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

Maximum accessibility for suppliers, exhibitors & visitors

Operational Excellence

Experience

Enhanced Customer

Shortest time to customer Seamless customer experience

~€30m already invested

18

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

  1. Restated

Yearly Net Profit expected positive throughout period of strategic plan

  1. Net of International sqm

19

SOME FACTS ALREADY IN THE BOOKS

New guidance and organization Guiding Principles

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

Profitability recovery

Full-year EBITDA: -1% to +6% ('16 vs. '17) 9M 2018 EBITDA: € 41.1m (vs. € 0.7m in 9M 2017) Recurring costs addressed +3pp profitability through efficiencies Upgrade of 2018 EBITDA target from € 17m to € 28-30m

Successful track record of key recent events

Exhib. performance 2017 vs previous edition Sicurezza +39% sqm (+47% visitors) Host +3% sqm (+31% visitors)

In 2018 successful first edition of The Innovation Alliance (150,000 visitors of which 27% international) Return to the STAR segment on 30 April 2018 FMG Stock performance +109%1 vs. end 2017

International footprint rationalized

to e-commerce packaging in China

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

20

Closing remarks

CLOSING REMARKS

We have a strong leadership trust We have a clear definition of the ingredients for our success

We are on track In the execution of our strategic plan We have completed the new organisation, started our investments and are strengthening our portfolio of exhibitions abroad

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.

For further information, please contact: Investor Relations Department Tel +39 02.4997.7816/7911 email: [email protected]

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

25

FINANCIAL OVERVIEW – INCOME STATEMENT

FY17
restated*
Consolidated
Income
Statement
(€m)
9M18 9M17
restated*
256
3
Revenues 193
3
177
4
3
2
Cost
of
materials
1
9
2
5
133
3
Cost
of
services
83
9
100
7
49
9
Costs
for
of
3rd-party
assets
use
37
8
37
4
48
9
Personnel
expenses
33
6
33
8
5
4
Other
operating
expenses
3
0
3
8
240
7
Total
operating
costs
160
2
178
3
2
6
Other
income
2
1
1
9
2
6
of
Results
equity-accounted
companies
6
8
1
7
8
5
Allowance
for
doubtful
and
other
provisions
accounts
1
0
2
0
15
1
EBITDA 41
1
0
7
6
8
Depreciation
and
amortisation
4
5
1
5
2
9
Adjustments
values
to
asset
0
0
0
0
5
4
EBIT 36
6
(4
5)
(0
8)
Financial
income/(expenses)
(0
1)
(0
8)
4
6
Profit/loss
before
income
tax
36
5
(5
3)
4
3
Shareholders
of
which
attributable
of
the
controlling
entity
to
36
8
(5
4)

* Starting with the Consolidated Financial Statements at 31 December 2017, operating profitability is calculated as EBITDA; therefore the 2017 figures, which showed the gross operating profit, have been restated to reflect this reclassification. The figures for 2017 also reflect the application of the new standard IFRS 15 from 1 January 2018.

FINANCIAL OVERVIEW – STATEMENT OF FINANCIAL POSITION

Consolidated
Statement
of
Financial
Position
(€m)
30/09/18 31/12/17
Non-current
assets
150
7
151
5
Net
working
capital
(59
3)
(74
3)
Gross
capital
employed
91
4
77
3
Non-current
liabilities
13
3
13
4
Total
capital
employed
net
78
1
63
8
Equity 99
7
63
0
financial
position
Net
(21
6)
0
8
Equity
and
financial
position
net
78
1
63
8

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