GL events — Interim / Quarterly Report 2021

Jul 22, 2021

H1 2021 RESULTS IMPACTED BY THE HEALTH CRISIS

UPTURN IN CHINA

CASH POSITION STRENGTHENED

GL EVENTS (ISIN: FR0000066672 - TICKER: GLO), THE INTEGRATED EVENT INDUSTRY GROUP, ANNOUNCES ITS 2021 FIRST-HALF RESULTS.

The interim financial statements for the 2021 first half were approved by GL events' Board of Directors on 22 July 2021. The auditors have completed their limited audit review and their report is in the process of being issued.

Olivier Ginon, Chairman-CEO of GL events, commented: "The Group continued to demonstrate its resilience and ability to adapt in the first six months of 2021. In addition to implementing efficient health protocols, in China we exceeded levels of business reached in 2019 and continued to adapt our service offerings in Europe where business resumed in June.

We have also continued adapt our financial structure. Our cost reduction efforts, the optimization of business assets through equity partnerships and government relief measures allowed us to reinforce our cash position at 30 June 2021.

In France, the announcements by the French President concerning the "health pass" represent an opportunity for our businesses. They strengthen the outlook for a recovery by our businesses with the end of restrictions on the size of public gatherings.

I would like to thank our employees for their exemplary behaviour since the beginning of this crisis and all our partners who remain faithful to the Group."

In €m	30/06/2021	30/06/2020	30/06/2021 pre-IFRS 16	30/06/2020 pre-IFRS 16
Revenue	209.8	266.8	209.8	266.8
EBITDA (1)	22.2	3.0	-2.4	-21.5
EBITDA margin (%)	10.6%	1.1%	-1.2%	-8.1%
Current operating income	-23.7	-43.0	-28.0	-46.7
Current operating margin (%)	-11.3%	-16.1%	-13.3%	-17.5%
Net income	-29.3	-34.2	-27.7	-32.8
Net income attributable to Group shareholders	-31.4	-31.5	-30.1	-30.4
Net margin	-15.0%	-11.8%	-14.4%	-11.4%

(1): Definitions are provided at the end of the press release.

At 30 June 2021, revenue for the first six months reached €209.8 million, continuing to be impacted by the health crisis (-21.4% from one year earlier). The second quarter achieved growth of nearly 118% in relation to Q1 2021, highlighting the gradual recovery of business within an improving health situation in the first half.

EBITDA in consequence increased significantly in relation to H1 2020, despite the drop in revenue. This result benefited from the significant and lasting cost-saving measures, aid provided by different European governments and the strong momentum of businesses in Asia. GL events achieved additional savings in fixed costs which reached €83 million for the first six months. These savings were based in part, on government COVID-19 relief measures (furlough schemes , partial compensation for fixed costs and compensation for lost ticket sales), and, in part, on very rigorous management of resources (travel expenses, rent, energy, fees and communication expenses). On that basis, pre-IFRS 16 EBITDA showed a loss of -€2.4 million (vs. +€22.2 million post-IFRS 16) and pre-IFRS 16 current operating income a loss of - €28.0 million (-€23.7 million post-IFRS 16).

Pre-IFRS 16 net financial expense was down from 30 June 2020 (-€7.1 million vs. -€5.7 million) reflecting a decrease in investment income and foreign exchange gains and losses.

The pre-IFRS 16 net loss amounted to -€27.7 million (vs. -€32.8 million in H1 2020). After non-controlling interests, pre-IFRS 16 net income attributable to Group equity holders amounted to -€30.1 million, remaining stable in relation to the prior year despite a decrease in revenue.

REVENUE AND CURRENT OPERATING INCOME BY DIVISION

GL events Live (€m)	30/06/2021	30/06/2020
Revenue	131.0	157.4
Current operating income (pre-IFRS 16)	-17.1	-11.5
Operating margin (%)	-13.0%	-7.3%

GL EVENTS LIVE had revenue in the 2021 first half of €131.0 million, down 16.8% in relation to the same period in 2020 (-14.8% LFL).¹ ). This division benefited from the resilience of industrial activities such as Spaciotempo in France, or Aganto in the United Kingdom, the delivery of the Temporary Grand Palais and the gradual resumption of events in France (Dakar Rally, the Grand Prix of Le Castellet, Roland Garros, the Dior Haute Couture fashion show) and robust business activity of GL events Live Shenzhen (+15% at 30 June 2021 in relation to 30 June 2019). Cost rationalisation efforts are continuing: savings of €40 million were achieved in H1 2021 for this division compared to €32 million in H1 2020 (in relation to H1 2019).

GL events Exhibitions (€m)	30/06/2021	30/06/2020
Revenue	51.7	45.0
Current operating income (pre-IFRS 16)	17.9	-8.5
Operating margin (%)	34.7%	18.9%

GL EVENTS EXHIBITIONS had revenue in the first half of €51.7 million, up 14.8% (+15.4% LFL¹ ) reflecting the robust gains from Chinese exhibitions (CIEC, CACLP and Fashion Source) and the organisation in France of four exhibitions (CFIA in Rennes, SEPEM in Colmar, Tranoï and Fashion Rendez-vous Première Vision in Paris) in June. GL events Exhibitions demonstrated its position as market leader by organising the first B2B exhibition in Europe since September 2020. These first exhibitions provided an opportunity to test and validate the health protocols implemented by the teams for the organisation of events under reinforced security. Cost savings achieved by the division amounted to €6 million in relation to H1 2019 (versus €10 million at 30 June 2020 in relation to H1 2019).

¹ LFL: like-for-like defined as at constant structure and exchange rates (2021 exchange rates applied to 2020 revenue)

GL events Venues (€m)	30/06/2021	30/06/2020
Revenue	27.2	64.5
Current operating income (pre-IFRS 16)	-28.8	-26.7
Operating margin (%)	-106.1%	-41.4%

GL EVENTS VENUES had revenue of €27.2million, down 57.8% (-56.7% LFL¹ ), impacted by the administrative closures imposed by government-ordered closures for five months in Europe and six months in South America. During this period, the division has reinforced and adapted its service offering. In this way, certain spaces were converted into COVID-19 testing or vaccination centres or student exam centres. Broadcast studios also rapidly set up in 2020 provided new sources of revenue. In relation to H1 2019, the division generated savings of €35 million over the first half compared to €24 million at 31 December 2020.

A STABLE FINANCIAL STRUCTURE – CASH POSITION REINFORCED

GL events' cash position was strengthened despite the uncertain environment. Equity partnerships developed in the period (GL events Greater China, GL events Sports) highlight the investor interest in GL events businesses. At 30 June 2021, the Group's cash position thus stood at €462 million, up in relation to 31 December 2020, to which is added an undrawn government-backed credit line of €122 million. GL events was granted a covenant holiday for fiscal 2021 by its banking partners for bilateral debt with no changes in the contractual terms. The request with respect to the syndicated debt is currently under study. The Group will enter into negotiations with its bondholders to obtain waivers for the Euro Private Placement (Euro PP).

Ongoing cost-saving measures, tight controls over capital expenditures (€21 million in the first half) and inflows from equity partnerships (€87 million) contributed to reducing net debt to €662 million at 30 June 2021 compared to €681 million at 31 December 2020.

RECENT EVENTS

The Group's innovation-driven approach initiated in partnership with the Matrice Institute resulted in the development of four projects spearheaded by students benefiting from the support of Group teams. In addition, two intrapreneurial projects have also been spearheaded by internal interdisciplinary teams. The testing of the prototypes for these projects (CSR, digital) will begin in September 2021 at events organised by the Group. The Group's aim is to perpetuate and accelerate this approach by establishing an open innovation fund to support start-ups, strengthen the creation of content and accelerate the development of partnerships.

In China, after welcoming Nexus Point as a new shareholder of GL events Greater China, the Group was selected to acquire a 10% equity stake in Capital Exhibition Group (CEG).

Capital Exhibition Group (a 60%-State-owned company), is a Chinese event industry company operating mainly as a manager of venues, an organiser of exhibitions and hosting large events (institutional, sports, cultural, etc.). CEG has a portfolio of 15 sites (exhibition and convention centres) representing a total area of 1,000,000 sqm under management, and in particular top-tier sites such as the China National Convention Center and Beijing International Convention Center. Through this partnership, GL events wishes to strengthen its presence in the event industry sector in northern China, consolidate the CIEC exhibitions and position itself for the upcoming Winter Olympic Games in Beijing.

OUTLOOK

GL events is looking forward to a high level of activity in the fourth quarter, subject to the impact of the Delta variant and the continuing implementation of the vaccination campaign. The Group should benefit in this way from the rescheduling of the main events initially planned for the first half (SIRHA, Global Industries, Fairs…), momentum provided by the economic recovery and the impact of mega-events (Tokyo Olympic Games, the Dubai World Expo).

The announcements by the French government concerning the implementation of the "health pass" are positive and offer genuine prospects for a recovery and confidence.

In Europe, activity should be sustained for regional and national events, whereas restrictions will remain in force for international events and gatherings.

In Asia, the positive momentum seen in the first half is expected to continue and the absence of spectators at the Tokyo Olympic Games has no impact at the level of the Group's activity.

In South America, the recovery will be slower, with a risk that it will not be possible to host large-scale events before 2022.

Based on these assumptions and information provided by local teams, sales revenues estimated for 2021 are expected to approach €700 million which would result in positive net profit attributable to Group shareholders, including additional government aid for the coverage of fixed costs.

According to the evolution of the situation, the Group will provide updates about the impact of the decisions adopted by different governments to combat the COVID-19 epidemic.

NEXT PRESS RELEASE: Q3 2021 REVENUE – 13 OCTOBER 2021 (AFTER THE CLOSE OF TRADING)

DEFINITIONS

• EBITDA: (earnings before interest, taxes, depreciation and amortisation) or "gross operating profit" defined as current operating income + depreciation, amortisation and provisions

• Constant exchange rates: average exchange rate of N applied to the previous period (N-1)

• Constant structure
• o for acquisitions of the period: by adding to revenue of prior periods the sales of the acquired company
• o for disposals of the period: by subtracting from revenue of prior periods the sales of the company sold
• LFL: like-for-like defined as at constant structure and exchange rates (see the definitions above for "constant structure" and "constant exchange rates" )
• IFRS 16: restatement of leases, standard applicable as from 1 January 2019
• o measurement of leases in the balance sheet under assets (right-of-use assets), with the recognition of a corresponding debt under liabilities (lease liabilities)
• o A portion of lease payments is recognised under operating expenses ("amortisation") and a portion under financial expense ("cost of debt")
• o Covenants are determined excluding the application of this standard.

FOLLOW US ONLINE

www.gl-events.com www.gl-events.tv

About GL events: The Group is a world-class provider of integrated solutions and services for events operating across the three main market segments: conventions, conferences, congresses; cultural, sports and political events; trade shows / B2B and B2C exhibitions and consumer fairs. GL events' activities are organised into three major business divisions. GL events Live provides a complete range of services for corporate, institutional and sports events, and offers turnkey solutions from consulting and design to staging the event itself. GL events Exhibitions manages and coordinates the Group's portfolio of more than

300 proprietary trade fairs covering a wide range of sectors: food industry, culture, textiles/fashion, manufacturing… GL events Venues manages a network of 50 venues (convention and exhibition centres, concert halls and multi-purpose facilities) in France and international destinations.

Present on five continents with operations in more than 20 countries, GL events has 4,800 employees. GL events is listed on Euronext Paris, Compartment B (mid-caps).

INVESTOR RELATIONS MEDIA RELATIONS

Sylvain Bechet Tel.: +33 (0)4 72 31 54 20 infos.finance@gl-events.com

Stéphanie Stahr Tel.: +33 (0)1 53 48 80 57 stephanie.stahr@cic.fr

ISIN FR0000066672 - BLOOMBERG GLO FP - REUTERS GLTN.PA - FTSE 581 LEI 9695002PXZMQNBPY2P44