Fiera Milano : Board of Directors approves the Consolidated financial statements at 31 December 2020

FIERA MILANO: BOARD OF DIRECTORS APPROVES

THE CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 20201

Results for the year impacted by the prolonged suspension of exhibitions and congresses due to the Covid-19 health emergency

• ▪ Revenues of Euro 73.6 million compared to Euro 279.7 million in 2019

• ▪ EBITDA of Euro 10.4 million compared to Euro 106.1 million in 2019, within the range (Euro 8-12 million) indicated to the market last December

• ▪ EBIT of Euro -34.3 million compared to Euro 59.6 million in 2019

• ▪ Net loss of Euro 34.2 million, compared to a net profit of Euro 34.3 million in 2019

• ▪ Net financial position, before IFRS 16 effects: net debt of Euro 23.9 million compared to a net cash position of Euro 68.3 million at 31 December 2019.

Milan, 15 March 2021. The Board of Directors of Fiera Milano S.p.A. ("Fiera Milano"), which met today under the chairmanship of Carlo Bonomi, approved the preliminary separate financial statements for 2020, which will be submitted for approval by the Shareholders' Meeting, as well as the consolidated financial statements for the year ended 31 December 2020. The Company also announced the appointment of Mario Franci as Chief Revenue Officer as of 6 April.

The Chief Executive Officer and General Manager of Fiera Milano, Luca Palermo, said: "We have come to the end of a year in which operations and, therefore, economic and financial results were severely affected by the prolonged suspension of exhibitions and congresses. Last February we presented the CONN.E.C.T. 2025 Strategic Plan, in which we set out the guidelines that over the coming years will lead us to compete in a fast-changing market and further establish Fiera Milano as a key player in the sector. While the course of the pandemic and the timetable of the vaccination program mean the short-term scenario is uncertain, our new plan lays the foundations for the reopening. New loans totalling Euro 82 million also allow us to improve our financial flexibility while we await a return to normal operations and will support the execution of the Strategic Plan."

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1 The income statement, balance sheet and cash flows for 2020 reflect the effects of the IFRS 16 accounting standard introduced starting from last year on the accounting of leases mainly relating, in the case of Fiera Milano, to lease agreeme nts for the exhibition sites and the congress centre. It should be noted that the Company, for reasons of greater transparency, also continues to provide data on the net financial position before the application of IFRS 16 as this is a reference parameter for financial analysts.

FIERA MILANO CONSOLIDATED FINANCIAL STATEMENTS

• ▪ ECONOMIC AND FINANCIAL PERFORMANCE FOR THE YEAR

The Group's business has seasonal elements due to exhibitions that are held on a biennial or multi-year basis.

It should be noted that the 2020 preliminary results were announced to the market on 22 February at the same time as the approval of the 2021-2025 Strategic Plan.

Revenues from sales and services amounted to Euro 73.6 million, down Euro 206.1 million compared to 2019. The fall in revenues is attributable to the significant changes in the exhibition and congress calendar due to the course of the pandemic, as mentioned above, which caused the cancellation of numerous events and a reduced format of those held in September and October. We also note the absence of biennial exhibitions held in "odd numbered years".

EBITDA stood at Euro 10.4 million, down Euro 95.6 million compared to Euro 106.1 million in 2019, within the range of Euro 8-12 million communicated to the market in December. The contraction is mainly due to the trend in revenues. This effect was partially offset by significant cost containment measures implemented from March, relating in particular to the management of exhibition sites and personnel. During December, Fiera Milano and Fondazione Fiera Milano agreed a temporary reduction in rent for the Milan and Rho exhibition sites and of the "MiCo" congress centre for 2020, worth a total Euro 14 million. This was allocated proportionally to the individual rental agreements in place between Fondazione Fiera Milano, Fiera Milano and Fiera Milano Congressi. The impact of IFRS 16 on EBITDA was positive at Euro 47.3 million, compared to Euro 47.7 million last year.

EBIT was negative at Euro 34.3 million, down Euro 93.9 million euros compared to Euro 59.6 million in 2019. The negative change reflects the trend in EBITDA. The positive impact of IFRS 16 on EBIT was Euro 7.8 million, essentially unchanged compared to the figure recorded in the previous year.

The Group recorded a net loss of Euro 34.2 million euros, compared to a net profit of Euro 34.3 million in 2019, including a Euro 3.7 million negative impact due to application of IFRS 16 (Euro 4.6 million in the previous year).

• ▪ PERFORMANCE BY OPERATING SEGMENTS

During 2020, 21 exhibitions were held in the fieramilano and fieramilanocity exhibition sites (52 in 2019) , as well as 5 congresses with related exhibition space (50 in 2019). Net square metres of exhibition space totalled 350,855 compared to 1,534,400 in 2019, while the number of exhibitors fell from 30,190 in 2019 to 7,060.

Eighteen exhibitions were held abroad (28 in 2019), for a total of 287,375 net square metres of exhibition space (511,230 in 2019) with 5,070 exhibitors (9,630 in 2019).

Revenues from sales and services, before elimination of inter-segment transactions, amounted to Euro 76.9 million compared to Euro 290.3 million in 2019. In total, 82.8% of revenues were generated by the Italian Exhibitions Business, 1.5% by the Foreign Exhibitions Business, 8.3% by the Media segment and the remaining 7.4% by the Congress segment.

• • The Italian Exhibitions Business saw revenues of Euro 63.6 million compared to Euro 235.3 million in 2019. The difference is mainly attributable to the cancellation of important

exhibitions, including the annual Salone del Mobile, Mido, Eicma and the biennial "even numbered years" Mostra Convegno Expocomfort, and some events taking place in reduced form, such as the directly organised HOMI Fashion & Jewels, the hosted Micam autumn and Bimu. The absence of the biennial "odd numbered year" exhibitions Host, Made Expo, Tuttofood and Transpotec Logitec should also be noted. EBITDA, equal to Euro 11.3 million (Euro 90.6 million euros in 2019), was impacted by the dynamics of revenues described above and takes into account the cost containment measures implemented during the year and the temporary reduction of the rents for the Milan and Rho exhibition sites. EBIT was negative Euro 28.1 million (positive Euro 50.7 million in 2019).

• • The Foreign Exhibitions Business sector recorded revenues of Euro 1.2 million compared to Euro 4.3 million in 2019, due to the suspension of exhibition activities because of the pandemic and the postponement of the Exposec event in Brazil to 2021. EBITDA was negative Euro 0.8 million (positive Euro 3.3 million in 2019). The change reflects the trend in revenues and the lower earnings of the joint venture in China (whose operations resumed from August), accounted for using the equity method. EBIT was negative Euro 1.1 million (positive Euro 2.9 million in 2019).

• • The Media sector recorded revenues of Euro 6.4 million (Euro 11.1 million in 2019). The contraction is mainly due to the course of the pandemic, which affected billboard advertising and digital services revenues, because the events held delivered less revenues and others were cancelled. There was also a lower sale from the Business International division's publications and events. EBITDA was equal to Euro 19 thousand (Euro 0.8 million in 2019) while EBIT was negative Euro 71 thousand (negative Euro 0.6 million in 2019). It should be remembered that in 2019 there were write-downs on publications equal to Euro 1.2 million.

• • The Congress sector posted revenues of Euro 5.7 million compared to Euro 39.7 million in 2019. This decrease is attributable to the change in the calendar of congress events starting from March due to the onset of the Covid-19 pandemic. In particular, the repositioning of important events in 2021 and subsequent years, including ICTAM, ENIT, Emerson, World Routes and ERA EDTA, should be noted. EBITDA was negative Euro 35 thousand (positive Euro 11.3 million in 2019). EBIT was negative Euro 5.0 million (positive Euro 6.6 million in 2019.

• ▪ CONSOLIDATED NET FINANCIAL POSITION

The net financial position at 31 December 2020, before the effects of IFRS 16, showed a net financial debt of Euro 23.9 million compared to a net cash position of Euro 68.3 million at 31 December 2019. The deterioration is mainly attributable to the aforementioned limited operations caused by the pandemic. Net financial debt including the IFRS 16 lease liability amounted to Euro 473.4 million (Euro 405.1 million at 31 December 2019).

FINANCIAL STATEMENTS OF THE PARENT COMPANY FIERA MILANO S.P.A.

The Parent Company Fiera Milano S.p.A. achieved revenues of Euro 63.0 million euros (Euro 230.0 million in 2019) and a net loss of Euro 24.8 million compared to a net profit of Euro 32.8 million in 2019.

• ▪ EVENTS AFTER THE END OF THE FINANCIAL YEAR

On 25 January 2021, Fiera Milano Media S.p.A. signed a preliminary contract for the sale of the publishing business unit to Quine Srl, a publisher specialising in technical magazines in the engineering, mechanical, food and construction sectors. The sale, which relates to the specialised publications in the Tech, Ho.Re.Ca and ICT sectors, staff and agents, was finalised on 23 February 2021 with the signing of the definitive contract effective from 1 March 2021. The agreed price for the sale of the branch is equal to the difference between assets and liabilities as resulting from the BU's balance sheet, whose goodwill was determined at Euro 1.3 million. The value of goodwill may undergo an adjustment, upon the occurrence of certain conditions, not exceeding Euro 300 thousand. The price will be paid in three instalments, the first on the date of signing the final contract, the second by 31 July 2021 and the third by 31 January 2022.

In February 2021, two 5-year loans were signed with a pool of banks (Euro 55 million) and a loan with Cassa Depositi e Prestiti S.p.A. (Euro 20 million), with 24 months' grace for a total of Euro 75 million, all backed by SACE's "Italy guarantee" on 90% of the amount disbursed. The resources available to the Group also include an additional Euro 7 million obtained from resources in Fund 394/81 from SIMEST and expiring on 31/12/2027, which bring the total amount of new funding to Euro 82 million.

On 22 February, the Board of Directors approved the 2021-2025 Strategic Plan called CONN.E.C.T. 2025 (Connections, Exhibitions, Community, Transformation), which aims to respond effectively to the impact of the pandemic, outlining future scenarios and identifying the key factors for successfully competing in a "New Normal" context, where technological innovation and digital transformation will play a leading role. CONN.E.C.T. 2025 attaches considerable importance to sustainability issues, setting specific objectives linked to ESG parameters alongside the traditional earnings and financial targets.

On 2 March 2021, Prime Minister Mario Draghi signed the new decree laying down measures to combat the pandemic and prevent the spread of Covid-19. The decree will be in force until 6 April 2021 and confirms the suspension of exhibition and congress activities.

• ▪ BUSINESS OUTLOOK

The extreme uncertainty about the course of the pandemic means forecasting for the current year is complex and highly uncertain. On one hand, the start of vaccination campaigns in most advanced countries is a real step forward in the fight to eradicate the virus. On the other, the recent spread of Covid-19 variants (e.g. English, Brazilian, South African) brings fresh uncertainty, the extent of which is still to be fully assessed. Because of this situation, it is not possible to make an exact judgement as to when there might be a return to exhibition and congress operations. This is currently forecast for May-June of the current year, as the government measures on the reopening of the exhibition facilities hinge on how the pandemic develops.