Fiera Milano — Call Transcript 2021

Mar 15, 2021

CONFERENCE CALL – 15 March 2021

FIERA MILANO GROUP FY 2020 Consolidated Results

1. Highlights

• 1. Financial results
• 1. Events after the end of the period
• 1. Business outlook

Highlights 1.0

1.1 Highlights

4

• Onsite trade fairs and congresses suspended from 23 February
• Temporary restart of activity in September/October but with low attendance figures
• EBITDA benefiting from the agreement with Fondazione Fiera Milano (landlord) on the reduction of rent for the Rho and Milan exhibition sites and the "MiCo" congress centre for a total value of Euro 14 million

FY 2020 results negatively affected by the prolonged suspension of exhibition activities due to the Covid-19 pandemic Conference Call 15th March 2021 KEY FIGURES (€m) FY 2020

KEY FIGURES (€m)	FY 2020	FY 2019	FY 2018
Net debt (net cash) pre IFRS16	23.9	(68.3)	(23.7)

		of which IFRS 16 impact	FY 2019	FY 2018
Revenues	73.6		279.7	247.2
EBITDA	10.4	47.3	106.1	31.9
EBIT	(34.3)	7.8	59.6	25.1
Net Profit / (Net Loss)	(34.2)	-3.7	34.3	18.6

Financial results 2.0

2.1 Italian exhibitions

• The exhibition calendar saw significant adjustments in 2020. Events were first re-scheduled in later months of the year and then major trade fairs – such as Il Salone del Mobile, Mostra Convegno Expocomfort, MIDO, EICMA – were cancelled.
• Exhibitions held in September and October (such as HOMI Fashion&Jewels, Micam and Bimu) were of reduced size
• Absence of biennial exhibitions HOST, Made Expo, Tuttofood and Transpotec Logitec

2.2 Italian exhibition business

Gross of adjustments for inter-segment transactions ⁷ Conference Call 15th March 2021

• The trend in revenues was affected by very limited activity (4 months: January, February, September and October)
• The change in EBITDA was mainly related to the trend in revenues, which was partially offset by the actions taken to reduce the cost base and by the renegotiation of the lease agreements with Fondazione Fiera Milano

Italian Exhibition Business (€m)	FY 2020	FY 2019
Revenues	63.6	235.3
EBITDA	11.3	90.6
% on revenues	18%	38.5%
EBIT	(28.1)	50.7
% on revenues	neg.	21.6%

2.3 Foreign exhibition

business

Gross of adjustments for inter-segment transactions 8 Conference Call 15th March 2021

• The contraction in revenues mainly reflected the effect of Covid-19 on the Brazilian exhibition calendar
• The EBITDA was affected by the decline in revenues and lower results from the joint venture activities in China (JV with Deutsche Messe AG), where exhibitions restarted in August 2020

Foreign Exhibition Business (€m)	FY 2020	FY 2019
Revenues	1.2	4.3
EBITDA	(0.8)	3.3
% on revenues	neg.	78.1%
EBIT	(1.1)	2.9
% on revenues	neg.	68.2%

2.4 Media

Gross of adjustments for inter-segment transactions ⁹ Conference Call 15th March 2021

• The decline in revenues was primarily related to lower billboard and technical publications revenue due to both cancellations of fairs and the reduced size of those exhibitions that were held
• The contraction in Margins was caused by the drop in revenues only partially offset by cost cutting actions. It should also be noted that in 2019 EBIT was pulled lower by a Euro 1.2 million write-down

Media (€m)	FY 2020	FY 2019
Revenues	6.4	11.1
EBITDA	0.0	0.8
% on revenues	0.3%	7.3%
EBIT	(0.1)	(0.6)
% on revenues	neg.	neg.

2.5 Congresses

Gross of adjustments for inter-segment transactions 10 Conference Call 15th March 2021

• The year-on-year trend in revenues and margins reflected the change in the congress calendar as a result of the Covid-19 emergency with several events cancelled or postponed to 2021

Congresses (€m)	FY 2020	FY 2019
Revenues	5.7	39.7
EBITDA	(0.0)	11.3
% on revenues	neg.	28.6%
EBIT	(5.0)	6.6
% on revenues	neg.	16.5%

2.6 Net Financial Position

The change in net financial position was mainly due to the suspension of exhibition activities

11 Conference Call 15th March 2021

Consolidated Net Financial Position (€m)	FY 2020	FY 2019
Cash & cash equivalents	20.4	68.0
Current financial assets	1.3	1.3
Current bank borrowings	49.0	0.0
Current portion of non-current debt	0.0	0.0
Other current financial liabilities	1.7	1.1
Current financial debt	50.8	1.1
Net current financial debt (cash)	29.0	(68.3)
Non-current financial assets	5.1	0.1
Other non-current payables	0.0	0.0
Non-current financial debt (cash)	(5.1)	(0.1)
Net financial debt (cash) before IFRS 16 effects	23.9	(68.3)
IFRS 16 financial effects	449.6	473.4
Net financial debt/(cash) after IFRS 16 effects	473.4	405.1

Events after the end of the period 3.0

3.1 Events after the end of the period

Approval of 2021-2025 Strategic Plan

CONN.E.C.T 2025

13 Conference Call 15th March 2021

(Connections, Exhibitions, Community, Transformation)

• Strategic Plan 2021-2025 to respond effectively to the impacts of the pandemic, outlining future scenarios and identifying the key factors for successfully competing in a "New Normal" context, in which innovation technology and digital transformation will play a leading role
• New business model focused on four strategic directions to become a leading European hub with an international presence
• Solid enabling factors represented by the enhancement of human capital, a commercial and product approach aimed at excellence, digital transformation and major investments aimed at increasing management efficiency and site competitiveness
• Focus on Sustainability as a tool for value creation for all Stakeholders
• 2025 targets linked to both financial and ESG parameters

3.2 Events after the end of the period

New suspension of exhibition activity until 6 April 2021

Subscribed three new loans for a total amount of Euro 82 ml

• Higher financial flexibility to support the execution of the strategic plan
• ✓ Euro 55 million (maturity 31.12.2025) from a syndicate of Italian leading banks (Intesa Sanpaolo, Banco BPM, UniCredit) backed by a SACE guarantee
• ✓ Euro 20 million (maturity 31.12.2025) from Cassa Depositi e Prestiti backed by a SACE guarantee
• ✓ Euro 7 million (maturity 31.12.2027) from SIMESTwithin the framework of the 394/81 Fund
• Sale of Fiera Milano Media publishing business unit specialised in Tech, Ho.Re.Ca. and ICT magazines to Quine Srl for a price of Euro 1.3ml subject to some adjustments
• Prime Ministerial Decree (DPCM) on 2 March 2021 confirmed the suspension of onsite exhibitions until 6 April 2021

14 Conference Call 15th March 2021

Disposal of Fiera Milano Media publishing business

Business outlook 4.0

4.1 Business outlook

• The extreme uncertainty about how the pandemic will evolve makes forecasting for the current year complex and subject to great volatility. Therefore, two scenarios have been considered:
• 1) Restart of exhibitions in Q2 2021 (May)
• ✓ Revenue: Euro 180-200 million
• ✓ EBITDA: Euro 40-50 million
• ✓ Net Financial Position: Euro +5/-5 million
• 2) Restart of exhibitions in Q3 2021 (September)
• ✓ Revenue: Euro 160-180 million
• ✓ EBITDA: Euro 35-45 million
• ✓ Net Financial Position: Euro 0-10 million
• Both scenarios do not include the effects of a new revision of the lease agreements in place with Fondazione Fiera Milano and only marginally any government contributions under the "de minimis" scheme

Data and information herewith set forth are extracted from the Fiera Milano Press Release relating to Consolidated Results 31 December 2020 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

17 Conference Call 15th March 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 prov
EBITDA
Depreciation and amortisation
Adjustments to asset values
EBIT
Financial income/(expenses)
Valuation of financial assets
Profit/loss before income tax
Income Tax
Net Profit/loss
hy attributable to the chareholders of the cor

Consolidated Income Statement (€m)	FY 2020	FY 2019
Revenues	73.6	279.7
Cost of materials	1.6	2.5
Cost of services	45.5	121.2
Costs for use of 3rd-party assets	0.5	0.5
Personnel expenses	31.9	47.4
Other operating expenses	2.5	4.8
Total operating costs	81.9	176.4
Other income	16.9	2.4
Results of equity-accounted companies	0.5	3.8
Allowance for doubtful accounts an other provisions	(1.3)	3.5
EBITDA	10.4	106.1
Depreciation and amortisation	44.8	45.2
Adjustments to asset values	0.0	1.3
EBIT	(34.3)	59.6
Financial income/(expenses)	(12.7)	(13.4)
Valuation of financial assets	0.0	0.0
Profit/loss before income tax	(47.0)	46.2
Income Tax	(12.9)	11.9
Net Profit/loss	(34.2)	34.3
o/w attributable to the shareholders of the controlling entity	(33.9)	34.4

Conference Call 15th March 2021

Financial overview – Reclassified Statement of Financial Position

Reclassified Consolidated Statement of Financial Position (€m)	FY 2020	FY 2019
Non-current assets	593.8	622.5
Net working capital	(35.4)	(87.7)
Gross Capital Employed	558.4	534.8
Non current liabilities	21.7	21.9
Total net Capital Employed	536.7	512.9
Equity	63.2	107.9
Net financial position	473.4	405.1
Equity and Net financial position	536.7	512.9
Net financial position pre-IFRS 16 effects (Net Cash)	23.9	(68.3)