Fiera Milano — Call Transcript 2021

May 10, 2021

CONFERENCE CALL – 10 May 2021

FIERA MILANO GROUP 1 st Quarter 2021 Consolidated Results

1. Highlights 2. Financial results 3. Business outlook

Highlights 1.0

1.1 Highlights

• Q1 2021 results reflected the suspension of exhibition activities due to the COVID-19 pandemic
• The lack of revenues negatively affected profitability and led to a loss before tax of Euro 23.2m

• Net Financial Debt before IFRS 16 effects increased by Euro 23.6m to Euro 47.5m compared to 23.9m at the end of 2020

• the new CONN.E.C.T. 2025 strategic plan sets out the path that will guide the Company in the coming years, with the aim of competing successfully in the "new normal"

• Trade fair and congress calendars were adjusted, exploiting every useful "time window" in H2 2021
• In China, the activity is currying out under normal conditions
• 4

Although business was suspended in the first quarter in Italy, Fiera Milano has laid the foundations for a quick and robust resumption of activities:

plan sets out the path that will guide the Company in the coming years,	KEY FIGURES (€m)	Q1 2021	Q1 2020 (*)
with the aim of competing	Revenues	1.5	47.6
successfully in the "new normal"	EBITDA	(9.9)	15.0
	EBIT	(21.0)	3.8
• Trade fair and congress calendars	Profit (loss) before tax	(23.2)	(0.1)
were adjusted, exploiting every useful "time window" in H2 2021	KEY FIGURES (€m)	Q1 2021	FY 2020
• In China, the activity is currying out	Net debt (net cash) pre IFRS16	47.5	23.9
under normal conditions
Conference Call 10 May 2021	(*) In the first two months of 2020 the activity was carried out under normal conditions

Financial results 2.0

2.1 Italian exhibition business

• Revenues were affected by the suspension of the business due to COVID-19 restrictions. The exhibition calendar saw some adjustments in Q1 2021
• The change in EBITDA was mainly due to the trend in revenues, which was partially offset by the actions taken to reduce the cost base

	Italian Exhibition Business (€m)	Q1 2021	Q1 2020 (*)
	Revenues	0.9	42.3
exhibition	EBITDA	(8.6)	15.1
	% on revenues	neg.	35.6%
	EBIT	(18.5)	5.2
business	% on revenues	neg.	12.2%
	• Revenues were affected by the due to COVID-19 restrictions. some adjustments in Q1 2021 The change in EBITDA was • revenues, which was partially to reduce the cost base	suspension of the business The exhibition calendar mainly due to the trend offset by the actions taken
Conference Call 10 May 2021	Gross of adjustments for inter-segment transactions

2.2 Foreign exhibition business

• The contraction in revenues reflected the effect of Covid-19 on exhibition calendar in Brazil and South Africa
• The improvement in EBITDA was due to the positive result of the joint venture in China (JV with Deutsche Messe AG), whose activity in Q1 2020 was halted as a result of the Covid-19 emergency, which hit the country from January 2020

	Foreign Exhibition Business (€m)	Q1 2021	Q1 2020 (*)
exhibition	Revenues	0.0	1.1
	EBITDA	0.1	(0.1)
	% on revenues	n.m.	neg.
business	EBIT	0.0	(0.2)
	% on revenues	n.m.	neg.
	The contraction in revenues • Covid-19 on exhibition calendar Africa The improvement in EBITDA • result of the joint venture in Messe AG), whose activity in Q1 result of the Covid-19 emergency, from January 2020	reflected the in Brazil was due to China (JV with 2020 was which hit	effect of and South the positive Deutsche halted as a the country
Conference Call 10 May 2021	Gross of adjustments for inter-segment transactions

2.3 Media

• The change in revenue was due to the cancellation of exhibitions during the quarter
• The change in margins was primarily due to the trend in revenues
• In Q1 2021 the publishing business was sold to Quine Srl, a publishing company specialising in technical magazines

		Media (€m)	Q1 2021	Q1 2020 (*)
		Revenues	0.3	2.1
		EBITDA	(0.5)	(0.2)
		% on revenues	neg.	neg.
		EBIT	(0.5)	(0.3)
		% on revenues	neg.	neg.
	•	The change in revenue was due exhibitions during the quarter	to the	cancellation of
	•	The change in margins was revenues	primarily due to	the trend in
	•	In Q1 2021 the publishing business Srl, a publishing company magazines	was sold specialising in	to Quine technical
Conference Call 10 May 2021		Gross of adjustments for inter-segment transactions

2.4 Congresses

• The decline in revenues was due to the absence of events as a result of the suspension of congress activities
• The change in EBITDA was primarily due to the trend in revenues

	Congresses (€m)	Q1 2021	Q1 2020 (*)
	Revenues	0.5	4.0
	EBITDA	(0.9)	0.3
	% on revenues	neg.	8.5%
	EBIT	(2.1)	(0.9)
	% on revenues	neg.	neg.
	The decline in revenues was • events as a result of the activities • The change in EBITDA was revenues	due to the suspension of primarily due to	absence of congress the trend in
Conference Call 10 May 2021	Gross of adjustments for inter-segment transactions

2.5 Net Financial Position

10

	31/03/2021	31/12/2020
	71.0	20.4
	1.3	1.3
	49.0	49.0
	0.0	0.0
	1.1	1.7
	50.2	50.8
	(22.1)	29.0
	5.4	5.1
	74.6	0.0
	0.5	0.0
	69.6	(5.1)
effects	47.5	23.9
	445.7	449.6
fects	493.2	473.4

Consolidated Net Financial Position (€m)	31/03/2021	31/12/2020
Cash & cash equivalents	71.0	20.4
Current financial assets	1.3	1.3
Current bank borrowings	49.0	49.0
Current portion of non-current debt	0.0	0.0
Other current financial liabilities	1.1	1.7
Current financial debt	50.2	50.8
Current net financial debt (cash)	(22.1)	29.0
Non-current financial assets	5.4	5.1
Non-current bank borrowings	74.6	0.0
Other non-current liabilities	0.5	0.0
Non-current financial debt (cash)	69.6	(5.1)
Net financial debt (cash) before IFRS 16 effects	47.5	23.9
IFRS 16 financial effects	445.7	449.6
Net financial debt/(cash) after IFRS 16 effects	493.2	473.4
The change in net financial position was mainly due to the suspension	of exhibition	activities
Conference Call 10 May 2021

Business outlook 3.0

3.1 Business outlook (1)

• On April 22, the Italian's Government approved a decree ("Reopening Decree") gradually easing Italy's COVID-19 restrictions.
• The decree, which will be in force from Monday 26 April until the end of July, reintroduces a lower-risk area (called yellow zones), where measures are less severe as the risk of contagion is considered to be only moderate.
• According to the new decree, trade fairs will be able to resume from June 15, while congresses and conventions will be able to reopen from July 1, in yellow zones.
• Despite still being in a period of extreme uncertainty, the Company confirms the 2021 targets:

✓ EBITDA in the range of Euro 35-45 million

✓ Net Financial Position in the range of Euro 0-10 million assuming the resumption of activities in Q3 2021 (September)

3.1 Business outlook (2)

• This scenario takes into account that the impact on operating margins from the lower turnover expected from the 2021 edition of the Salone del Mobile and, prudently, from other scheduled exhibitions, can be offset by the effects of:
• ✓ cost containment actions
• ✓ government contributions under the "de minimis" scheme
• Fiera Milano is ready to restart by exploiting:
• ✓ the further developments of its platform in terms of new technological solutions and digital services
• ✓ a solid financial situation: Euro ~70 million of cash, and a further Euro 31 million of credit lines still not used

Data and information herewith set forth are extracted from the Fiera Milano Consolidated Interim Management report to 31 March 2021 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

14 Conference Call 10 May 2021

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
Cost of materials
Cost of services
Costs for use of 3rd-party assets
Personnel expenses
Other operating expenses
Total operating costs
Other income
Results of equity-accounted companies
Allowance for doubtful accounts an other provis
EBITDA
Depreciation and amortisation
Adjustments to asset values
EBI
Financial income/(expenses)
Valuation of financial assets
Profit/(loss) before income tax from continuing
Profit/(loss) before income tax from discontinue
Profit/loss before income tax
o/w attributable to the shareholders of the contr

Consolidated Income Statement (€m)	Q1 2021	Q1 2020 (*)
Revenues	1.5	47.6
Cost of materials	0.0	0.6
Cost of services	5.8	20.8
Costs for use of 3rd-party assets	0.1	0.2
Personnel expenses	7.6	10.8
Other operating expenses	0.4	0.7
Total operating costs	13.9	33.1
Other income	2.6	0.8
Results of equity-accounted companies	0.1	(0.1)
Allowance for doubtful accounts an other provisions	0.2	0.1
EBITDA	(9.9)	15.0
Depreciation and amortisation	11.2	11.3
Adjustments to asset values	0.0	0.0
EBIT	(21.0)	3.8
Financial income/(expenses)	(3.0)	(3.9)
Valuation of financial assets	0.0	0.0
Profit/(loss) before income tax from continuing operations	(24.0)	(0.1)
Profit/(loss) before income tax from discontinued operations	0.8	0.0
Profit/loss before income tax	(23.2)	(0.1)
o/w attributable to the shareholders of the controlling entity	(23.2)	(0.0)

Financial overview – Reclassified Statement of Financial Position

Reclassified Consolidated Statement of Financial Position (€m)	31/03/2021	31/12/2020
Non-current assets	583.0	593.8
Net working capital	(29.2)	(35.4)
Gross Capital Employed	553.8	558.4
Non current liabilities	21.0	21.7
Total net Capital Employed	532.8	536.7
Equity (*)	39.6	63.2
Net financial position	493.2	473.4
Equity and Net financial position	532.8	536.7
Net financial position pre-IFRS 16 effects (Net Cash)	47.5	23.9
(*) Equity at 31 March 2021 incudes pre-tax result for the period
Conference Call 10 May 2021