Fiera Milano — Investor Presentation 2021

Mar 24, 2021

Fiera Milano Group

Virtual STAR Conference 2021 Spring edition

Agenda

01. Group overview

02. Market scenario

03. 2021-2025 Strategic Plan – CONN.E.C.T. 2025

04. 2021-2025 Targets & projections

05. FY 2020 Results

06. Back-up – Strategic framework

Group overview

Fiera Milano: a history of growth of more than 100 years

Source: Fiera Milano, Roland Berger analysis

STAR Conference – Spring edition (virtual) ³

The Group is active in 4 businesses

Source: Fiera Milano, Roland Berger analysis

March 24th STAR Conference – Spring edition (virtual) , 2021 ⁴

Fiera Milano is the leading Italian operator in the Exhibition industry – Covid-19 crisis in 2020 interrupted 2017-19 growth trend

Key highlights

• 2017-19: significant profitability improvement mainly linked to cost efficiencies; constant net sold area
• 2020: abrupt interruption of growth trend, with most events cancelled due to Covid-19 crisis – 74% revenue reduction and sharp reduction in EBITDA, down to EUR 10m

Source: Fiera Milano, Roland Berger analysis

March 24th STAR Conference – Spring edition (virtual) , 2021 ⁵

Fiera Milano has one of the largest venues in the exhibition market, but with lower levels of internationalization and direct organization of events

Selection of key players in the Exhibition Industry

1) Based on 2019 exchange rates: 1 EUR = 0.88 GBP, 1.12 USD); 2) Calculated as aggregate of Informa Markets, Connect and Tech BUs;

3) Considering only Rho venue; 4) Calculated evenly weighting international revenue share 2018 (50% international revenues on total = 100), avg. % international exhibitors 2018 and avg % of international visitors 2018

Source: UFI, AUMA, Statistics Report Emeca 2018, Roland Berger analysis, Fiera Milano

A well diversified portfolio almost entirely B2B and exposed to sectors where the label "Made in Italy" has strong appeal

Figures refer to net exhibition space rented out in Italy (average2017-2019)

March 24th STAR Conference – Spring edition (virtual) , 2021 ⁷

Fiera Milano a big impact on Italian economy

EUR 8.1 billion Total impact of Fiera Milano

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

STAR Conference – Spring edition (virtual) March 24th, 2021 ⁸

EUR 4.3 billion

of which in Lombardy

Italian exhibitors made EUR ≈ 47 bn sales in Fiera Milano fairs in 2019 – Export accounting for 38% of total revenues

Italian exhibitors sales at FM fairs by industry [2019; EUR m]

Food, Food Tech, Hospitality Fashion Industrial Machinery Other 3.6 Furniture, Total Furnishing, Design 17.7 6.4 2.8 3.7 1.2 Focus on export [2019; EUR m] Export accounts for 38% of total revenues generated by Italian exhibitors in FM

Source: Fondazione Fiera Milano, The European House Ambrosetti

Shareholder structure

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

Updated as at 30 June 2020

Market scenario

After Covid-19 impact, in 2020 Exhibition market dropped by 68% in revenues compared to 2019

Exhibition market size – Main 14 countries [2015-20E; USD bn]

Estimated decline in mkt size – Main 14 countries [2020 vs '19]

Source: AMR International, Fiera Milano, Roland Berger analysis

Exhibitions market rebound to pre-Covid levels expected in '24 for Europe and US, possibly '23 for Asia – Global congresses recovery expected already in '23

Key highlights

Europe & US:

• No events in Q1 2021, expected recovery start in Q2
• No international exhibitions in Q2
• Recovery in events and attendance in Q3-Q4

Asia:

• Progressive recovery in Asia in Q1-Q2 and in H2 2021
• Limited international attendance vs. pre-Covid levels for 2021

COVID-19 outbreak driving emerging trends for the exhibition industry

• Ensure consumer safety with respect to events and gatherings • Technological investments in venues to follow safety regulations Health & safety as priority

• Vaccine release and distribution in Q1-Q2 2021 to limit virus spreading

• Increased importance of Digital in the exhibition industry after Covid-19 crisis

• Expected role of Digital as complementary solution within a Phygital environment; substitutive role less likely in the long term

Government financial support

Hybrid & digital events

• Government support and financial aids to sustain the exhibition industry

• Supporting venues highly strategic to the recovery, as the exhibition value chain is critical in terms of potential GDP creation

Regulatory environment

• Social distancing measures and restrictions to international travel expected to soften after vaccine release

Source: Press review, Mergermarket, Roland Berger analysis, Fiera Milano

2021-2025 Strategic Plan

03

CONN.E.C.T. 2025 (Connections, Exhibitions, Community, Transformation)

Creating a world of opportunities for businesses and individuals through our European Hub in Milan and beyond and our global network

Be the leading smart hybrid platform for innovative, sustainable and business-relevant events, with a European Hub and a Global reach

Mission

Purpose

Strategic Framework

Key pillars

Source: Fiera Milano, Roland Berger

To achieve this goal, Fiera Milano is on the verge of business model transformation

	Current state	Ambition
Target products	(B2B)	(B2B and Corporate events) (B2C)
Geographies
Key partners	> Organizers of hosted exhibitions	> Organizers + Service providers + International partners
Channels
Key assets	> Physical venue as main core asset	> Physical venue + Digital platform + Service partners
Core competencies	> Venue management + Event scouting	> Venue management + Event scouting + Event management & organization + Digital
Revenue model	> Venue valorization	> Venue valorization + Value-added services
Cost model	> % Fixed (e.g. Venue) > % Variable (e.g. Partner)	> % Fixed > % Variable
Overall business model	Venue for business matchmaking among exhibitors and visitors through organized or hosted events	Leading hybrid platform for innovative and effective events, with a European Hub and a Global reach
Source: Fiera Milano, Roland Berger STAR Conference –	Italy International Physical Spring edition (virtual) March 24th, 2021	Digital

Fiera Milano Group defined strategic goals for each key business area

Services and contents platform

Capture full potential of both traditional and digital services through a platformdriven business model

Exhibitions organization

Strengthen portfolio of organized exhibitions by focusing on internationalization and new concepts

Venue

Secure and enhance hosted exhibitions and venue occupancy through strategic alliances with organizers and by attracting new exhibitions

Congresses

Consolidate and expand congresses positioning by leveraging the venue, developing strategic alliances and being the enabler for phygital events

Source: Fiera Milano, Roland Berger

Services & Contents platform

Create and leverage a one-stop-shop platform-driven business model

Business model

Move from a traditional silos-driven business model to a one-stop-shop platform-driven business model through physical & digital touch points and by leveraging a flexible and scalable model

Source: Fiera Milano, Roland Berger

Exhibitions organization

leading players Re-positioning and scale-up

• Recover performances and grow own exhibitions; example: exploit Host's international positioning to develop partnerships with leading players involving TuttoFood (focus on scale) and Homi (focus on exhibition repositioning)

Internationalization

• Increase share of international exhibitors/ buyers in Italy
• Become the reference Made-in-Italy global platform
• Foster international geo-cloning of key events in most attractive global markets

New Concepts

• Launch new (co-)organized B2B exhibitions in attractive and anti-cyclical market segments (e.g. Life science, Greentech, Ebusiness) and B2C exhibitions

Source: Fiera Milano, Roland Berger

Re-positioning and scale-up framework1)

Venue

Maximize venue exploitation

Main initiatives

Develop alliances to consolidate portfolio (e.g. simultaneous and colocated combination of leading events in strategic industries)

Support Hosted exhibitions' performance recovery/ improvement (e.g. roadshow-support, management of administrative and sales offices)

Scouting and attraction of new exhibitions (e.g. international exhibitions, B2C events)

Implement safety measures to attract visitors and buyers in the New Normal

FM will also leverage its competencies in Venue management to provide services to other Venues

Congresses

Exploit state-of-the art congress center to foster FM's growth path and enhance positioning

FM to become the main leading congress center in Europe by leveraging a state-of-the-art venue

Credits: Filippo Ferrarese

Main initiatives

Collaborate with other national and international venues for Joint Business Development

Bring into the market a reconfigured integrated, safe and sustainable venue to attract world-class events

Consolidate and reinforce Milano City Convention Bureau in collaboration with local institutions to promote Milan as a top-EU destination

Offer state-of-the-art digital technologies (e.g. HD video recording and streaming) to enable the Phygital congress

Source: Fiera Milano, Roland Berger

In a 1st strategic phase, focus on business excellence, scaling-up and on preparing for business transformation, that is then realized in a 2nd phase

Source: Fiera Milano, Roland Berger

Key strategic enablers related to evolution of resources / competencies, processes, digital and physical infrastructures

Enablers and Goals

HR Transformation & Organizational Alignment	Commercial and Product Development excellence	Digital transformation	Investments on the Venue & continuous improvement
> Deploy the right team and competencies to meet the ambition	> Set the right rules of the game	> Enable the platform business model and digital services	> Propose a top quality, efficient and sustainable venue
Key aspects
New Roles (e.g. Digital/ Business Transformation)	Integrated commercial processes	State-of-the-art systems (e.g. CRM, Finance, etc,)	Network 2.0 (Smart cameras, WiFi renovation)
New Resources (e.g. Digital)	Customer-centric approach	Fiera Milano Platform	Photovoltaic system
Training (e.g. market orientation, product dev., digital)	KPIs and incentives	Data Hub and analytics	Continuous improvement
	Dedicated resources and skills alignment (Organic development)	≈ EUR 10-15 m (CapEx '21-'25)	≈ EUR 90-100 m (CapEx '21-'25)
	Backed by Fiera Milano Group	Including resources for	Backed by Fondazione Fiera Milano
Source: Fiera Milano, Roland Berger		business experimentation
STAR Conference – Spring edition (virtual)		March 24th, 2021	25

Fiera Milano has already developed advanced solutions ready to be launched

Source: Fiera Milano, Roland Berger

50% Operational excellence Enhanced customer experience 15% Safe and Smart District 25% 10% Sustainability and innovation Total investments Fondazione Fiera Milano 2021-25 Total investments Fiera Milano 2021-25 Total investments 2021-25 ≈ 25 90-100 115-125 Investments on the Venue Backed by FFM Incl. EUR ≈ 10-15 m of digital transformation

CapEx plan [2021-25; EUR m]

Source: Fiera Milano, Roland Berger

FMG committed to pursue ambitious sustainability goals, responsibly creating value for customers and industries, for its people and for communities

Note: 1) Supply Chain Management

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In '25, FMG expected to achieve EUR ≈ 290-310 m revenues and EUR ≈ 110-120 m EBITDA; net cash projected to a range of EUR ≈ 75-85 m by '25

• Exhibitions assumed to restart in Q2 2021, assuming successful containment of global pandemic
• In 2021, most of events traditionally held in H1 postponed to H2; since 2022, exhibitions calendar planned to follow traditional/ pre-covid scheduling
• Fiera Milano expected to overachieve 2019 EBITDA in 2025
• NFP projected to improve from a net debt of EUR 24 m in 2020 to a net cash in the range of EUR 75-85 m in 2025

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16; 3) Preliminary values

Digital transformation and focus on services are key drivers to overachieve 2019 EBITDA in 2025 despite an expected reduction in sold area

EBITDA1) and Sold Area trend 2021-2025 [EUR m, SQM m]

Remarks

• Continued recovery over the period 2021-2025
• Expectation of a like-for-like2) contraction of sold areas Vs. 2019 by 42% in 2021 and by 12% in 2025
• Digital transformation and focus on services as key drivers to protect and enhance revenues per sqm and to recover profitability in spite of volume contraction

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals; 2) comparison performed considering average contraction in sold areas of exhibitions held in 2019, 2021 and 2025

Exhibition restart in September vs May 2021 would mainly impact 2021 revenues and EBITDA and cumulative cash generation

Key financials 2021-25 – Alternative scenario

May Sept

Source: Fiera Milano Note: 1) EBITDA values incorporate impacts of IFRS 16 (not including impact of venue rentals); 2) NFPs are calculated excluding impacts of IFRS 16

STAR Conference – Spring edition (virtual) March 24th, 2021 ³²

Exhibitions restart in:

Additional opportunities have been identified and could be leveraged by FMG to gain full potential; potential risks mainly coming from exogenous factors Potential EBITDA impact

On top of financial targets, FMG set specific ESG targets

Source: Fiera Milano, Roland Berger analysis

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 and advisors 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 result 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.
• More specifically, our forward-looking statements have been defined while economies, sectors and communities are being hit by the aftermaths of one of the most severe global outbreak of modern history, connected with the start of COVID-19 pandemic in early 2020.
• Within this context, our statements are supported by Roland Berger analysis on the likely evolution of general and business environment
• We believe that global pandemic will be contained in the course of 2021 thanks to massive deployment of available vaccines; as a result, we believe that physical exhibitions will start to be held again from Q2 2021 and that volumes will progressively recover to pre-COVID levels by 2024-2025.
• 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.

FY 2020 results

Financial overview – Income Statement

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

Remarks

• FY 2020 results heavily penalised by the prolonged suspension of exhibition activities due to the Covid-19 pandemic
• 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

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)

2.6 Net Financial Position

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

06

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Back-up – Strategic Framework

Traditional services

Increase value capturing along the value chain

Average exhibitors' spending by service category [2019; %]

Source: Fondazione Fiera Milano, Fiera Milano, Roland Berger analysis

Digital services

Capture full potential from digital services

Digital services: key axes Ambition : 15% incidence on Revenues1)

Virtual / hybrid events solutions

• Digitalization of traditional services and increased functionalities for hybrid events:
  • Exhibitors/ Organizers portals
  • Exhibition's websites & Adv.
  • Business matching
  • Virtual rooms/ booths
  • age
  • Connectivity
  • Mobile APP
  • Digital payments
  • ….

Hybrid Data & Information solutions 1 2 3 Transactional solutions

• Development of new "pure digital" services such as Intelligence services:
  • Data Analytics
  • Trend barometer
• Development and intregration of digital contents within FM platform
  • Interviews
  • Webinars

• …

• Sector analysis

• Integration of transactional solutions within Fiera Milano platform to allow direct product procurement
• Enabled by partnerships with digital marketplace providers (no make)

Mix of digital services differentiated depending on ultimate needs addressed by each specific exhibition

(E.g. transactions-driven, information-driven, entertainment-driven)

Note. 1) % on area revenues Source: Fiera Milano, Roland Berger

Contents community

Create and animate an active community around Fiera Milano ecosystem through contents

Strategic guideline

Fiera Milano to develop a holistic community ecosystem living beyond the fair, both physically and digitally

Source: Fiera Milano, Roland Berger

Exhibitions organization

Fiera Milano outgoing internationalization strategy is focused on few projects but with sizeable targets in attractive geographies and strategic industries

Development of new sectors / concepts is the result of a structured process, aiming at identifying attractive opportunities

Source: Fiera Milano, Roland Berger

Fiera Milano's annual and biennial exhibitions expected to achieve a positive double digit growth rate in 2021-25

Thanks for your attention

For further information, please contact: Investor Relations Department Tel +39 02.4997.7816/7911 email: investor.relations@fieramilano.it

Fiera Milano S.p.A. T +39 01.2345.6789 F +39 01.2345.6789 info@fieramilano.it fieramilano.it

Sede legale: Piazzale Carlo Magno 1, 20149 Milano, Italia Sede operativa e amministrativa: Strada Statale del Sempione 28, 20017 Rho (MI)

Registro Imprese di Milano 0123456789 REA MI 0123456 Capitale sociale Euro 0.123.456,00 P. IVA 0123456789