Fiera Milano — Earnings Release 2018

Mar 12, 2019

FY2018 Consolidated Results

FIERA MILANO GROUP

CONFERENCE CALL – 12 March 2019

Business outlook

In 2018 strong improvement of consolidated economic and financial results despite a less favourable exhibition calendar

• Revenues: Euro 247.2 million (Euro 256.3 million in 2017)
• EBITDA: Euro 31.9 million, more than doubled compared to 2017, and higher than the target of Euro 28-30 million
• Profit: Euro 18.6 million (Euro 1.7 million in 2017)
• Net cash of Euro 23.7 million (net debt of Euro 0.8 million as at 31 December 2017), higher than expected (Euro 15-20 million)
• Proposal to the Shareholders' Meeting of a dividend distribution of Euro 0.13 per share

Business outlook

ITALIAN EXHIBITION BUSINESS

• Annual exhibitions: general positive performance
• Biennial exhibitions: presence of Mostra Convegno Expocomfort and absence of Host and Tuttofood
• Multi-year exhibitions: presence of Innovation Alliance, an event that for the first time brought together five exhibitions covering the entire processing and packaging supply chain

ITALIAN EXHIBITION BUSINESS

FY18	FY17 restated*
200.3	206.4
23.8	11.5
11.9%	5.6%
20.0	5.3
10.0%	2.6%

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

• The 2018 trend in revenues mainly reflected the absence of the directly organized exhibitions Host and Tuttofood, partially offset by the presence of The Innovation Alliance
• 2018 results benefited from the cost control measures

FOREIGN EXHIBITION BUSINESS

Foreign Exhibition Business	FY18	FY17
Revenues (€m)	7.8	5.1
EBITDA (€m)	3.7	0.1
% on revenues	47.2%	1.6%
EBIT (€m)	3.3	(0.4)
% on revenues	42.1%	-8.6%

• 466,795 net square meter (+9.4% vs 2017)
• The 2018 increase in revenues mainly reflected the presence of the biennial exhibition Fisp in Brazil
• 2018 margins benefited from the restructuring actions put in place in Brazil and South Africa

Media	FY18	FY17
Revenues (€m)	11.3	10.8
EBITDA (€m)	0.6	0.4
% on revenues	4.9%	3.8%
EBIT (€m)	(0.6)	(1.2)
% on revenues	-5.5%	-11.0%

• The 2018 increase in revenues and results were due to higher billboard advertising for the presence of Mostra Convegno Expocomfort, sponsorship revenues and digital services
• 2018 EBIT was affected by a write-down of the technical publications "Food & Beverage" (€0.5 million) and "Technology" (€0.5 million)

CONGRESSES

Congresses	FY18	FY17 restated*
Revenues (€m)	37.7	46.2
EBITDA (€m)	3.8	3.0
% on revenues	10.2%	6.5%
EBIT (€m)	2.5	1.7
% on revenues	6.5%	3.7%

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

• The 2018 trend in revenues reflected the absence of destination management services for the ERS congress
• EBITDA rose mainly thanks to the presence of the summit of the Organization for Security and Cooperation in Europe

NET FINANCIAL POSITION

Consolidated Net Financial Position (€m)	31/12/18	31/12/17
Cash & cash equivalents	28.4	17.9
Current financial assets	0.0	2.8
Current bank borrowings	0.0	0.7
Current portion of non-current debt	3.5	16.6
Other current financial liabilities	1.3	0.7
Current financial debt	4.8	18.0
Net current financial debt (cash)	(23.6)	(2.8)
Non-current financial assets	(0.1)	0.0
Non-current bank borrowings	0.0	3.5
Other non-current payables	0.0	0.0
Non-current net financial debt	(0.1)	3.5
Net financial debt (cash)	(23.7)	0.8

The improvement in the net financial position was due to the operating cash flow

Business outlook

BUSINESS OUTLOOK

• The business trend and management efficiencies have led to an upgrade of the target for full-year 2019 EBITDA of Euro 31-33 million of the 2018-2022 Strategic Plan: this is now expected to be in the range of Euro 36-40 million
• The Group has adopted the new IFRS 16 "Leasing" applicable to financial period beginning 1 January 2019: the EBITDA target for 2019 restated to reflect the new IFRS is in the range of Euro 84-88 million
• The recognition of the leases as of 1 January 2019 will result in an impact of around Euro 523 million on the net financial position, and a reclassification of lease expenses from operating expenses to amortization and financial expenses which is estimated to be around Euro 48 million

FORWARD-LOOKING STATEMENT

Data and information herewith set forth are extracted from the press release relating to Fiera Milano Consolidated Results to 31 December 2018 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 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)	FY18	FY17 restated*
Revenues	247.2	256.3
Cost of materials	2.4	3.2
Cost of services	114.1	133.3
Costs 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

* The figures for 2017 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)	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