Italian Exhibition S p A : 2021 ANNUAL FINANCIAL REPORT

2021 ANNUAL FINANCIAL REPORT

ITALIAN EXHIBITION GROUP S.p.A.

Via Emilia 155 - 47921 Rimini

Share capital € 52,214,897 fully paid-in

Rimini Register of Companies no. 00139440408 REA 224453

VAT no. and tax code 00139440408

Index

Index..........................................................................................................................3

IEG Group structure.................................................................................................5

Administration and Control Bodies of Italian Exhibition Group S.p.A. .............. 7

Directors' Report on Operations .......................................................................... 10

PERFORMANCE AND ANALYSIS OF THE MAIN RESULTS AS AT 31 DECEMBER 2021 .................................. 11

ANALYSIS OF CONSOLIDATED RECLASSIFIED INCOME STATEMENT DATA ................................................. 14

ANALYSIS OF RECLASSIFIED CONSOLIDATED BALANCE SHEET FIGURES ................................................. 19

ANALYSIS OF THE CONSOLIDATED NET FINANCIAL POSITION .................................................................. 20

CONSOLIDATED CASH FLOW STATEMENT ............................................................................................ 22

INVESTMENTS ...................................................................................................................................... 23

PARENT COMPANY ITALIAN EXHIBITION GROUP S.P.A .......................................................................... 24

RECLASSIFIED INCOME STATEMENT DATA OF ITALIAN EXHIBITION GROUP S.P.A . ................................... 24

RECLASSIFIED BALANCE SHEET DATA OF ITALIAN EXHIBITION GROUP S.P.A . ........................................ 25

NET FINANCIAL POSITION OF ITALIAN EXHIBITION GROUP S.P.A . ........................................................... 26

CASH FLOW STATEMENT OF ITALIAN EXHIBITION GROUP S.P.A . ........................................................... 27

RELATIONS WITH SUBSIDIARIES, ASSOCIATED COMPANIES AND PARENT COMPANIES .............................. 28

RESEARCH AND DEVELOPMENT ............................................................................................................ 31

RISKS CONNECTED TO THE EXTERNAL CONTEXT ................................................................................... 31

RISKS CONNECTED TO THE INTERNAL CONTEXT .................................................................................... 32

INFORMATION ON TREASURY SHARES AND PARENT COMPANY SHARES ................................................. 34

INFORMATION ON HUMAN RESOURCES .................................................................................................. 34

INFORMATION ON THE ENVIRONMENT .................................................................................................... 35

INFORMATION ON THE ADMINISTRATIVE LIABILITY OF COMPANIES AND PERSONAL DATA PROCESSING ...... 36

SIGNIFICANT EVENTS AFTER THE YEAR-END CLOSING AND BUSINESS OUTLOOK ...................................... 36

ALLOCATION OF THE PROFIT FOR THE YEAR .......................................................................................... 38

Consolidated Financial Statements as at 31 December 2021 .......................... 39

CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................................................................... 40

CONSOLIDATED INCOME STATEMENT ................................................................................................... 42

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .................................................................... 43

CONSOLIDATED CASH FLOW STATEMENT ............................................................................................ 45

GENERAL INFORMATION ...................................................................................................................... 47

STRUCTURE AND CONTENTS OF THE FINANCIAL STATEMENTS ................................................................ 48

GOING CONCERN ................................................................................................................................. 49

MEASUREMENT CRITERIA ..................................................................................................................... 50

USE OF ESTIMATES .............................................................................................................................. 61

SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS .................................................................. 62

FINANCIAL RISK MANAGEMENT ............................................................................................................. 62

OPERATING SEGMENTS ........................................................................................................................ 67

CONSOLIDATION PRINCIPLES ............................................................................................................... 67

SCOPE OF CONSOLIDATION AND CHANGES ............................................................................................ 69

BUSINESS COMBINATIONS .................................................................................................................... 70

IFRS ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS APPLIED FROM 1 JANUARY 2021

OR APPLICABLE IN ADVANCE ................................................................................................................ 71

NEW IFRS AND IFRIC ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS NOT YET

APPLICABLE AND NOT ADOPTED EARLY BY THE IEG GROUP .................................................................. 71

COMMENTS ON MAIN ASSET ITEMS ........................................................................................................ 73

COMMENTS ON THE MAIN ITEMS OF LIABILITIES AND SHAREHOLDERS' EQUITY ........................................ 84

COMMENTS ON MAIN ITEMS OF THE CONSOLIDATED INCOME STATEMENT ................................................ 96

ANNEX 1 ........................................................................................................................................... 104

Statement relating to the Consolidated Financial Statements pursuant to art.

154 bis, paragraph 5 of Italian Legislative Decree no. 58/1998 ................... 106

STATEMENT RELATING TO THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO ART. 154 BIS,

PARAGRAPH 5 OF ITALIAN LEGISLATIVE DECREE NO. 58/1998 ............................................................ 107

Independent Auditors' Report to the Consolidated Financial Statements .... 108

Separate Financial Statements as at 31/12/2021 ........................................... 116

STATEMENT OF FINANCIAL POSITION ................................................................................................. 117

STATEMENT OF COMPREHENSIVE INCOME .......................................................................................... 120

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY ......................................................................... 121

CASH FLOW STATEMENT ................................................................................................................... 122

GENERAL INFORMATION .................................................................................................................... 124

STRUCTURE AND CONTENTS OF THE FINANCIAL STATEMENTS .............................................................. 125

GOING CONCERN ............................................................................................................................... 126

MEASUREMENT CRITERIA ................................................................................................................... 127

USE OF ESTIMATES ............................................................................................................................ 138

SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS ................................................................ 139

FINANCIAL RISK MANAGEMENT ........................................................................................................... 140

IFRS ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS APPLIED FROM 1 JANUARY 2021

OR APPLICABLE IN ADVANCE .............................................................................................................. 144

NEW IFRS AND IFRIC ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS NOT YET

APPLICABLE AND NOT ADOPTED EARLY BY IEG .................................................................................. 144

COMMENTS ON MAIN ASSET ITEMS ...................................................................................................... 146

COMMENTS ON THE MAIN ITEMS OF LIABILITIES AND SHAREHOLDERS' EQUITY ...................................... 159

COMMENTS ON THE MAIN ITEMS OF THE INCOME STATEMENT ............................................................... 170

ADDITIONAL INFORMATION ................................................................................................................. 176

Statement relating to the Separate Financial Statements pursuant to art. 154

bis, paragraph 5 of Italian Legislative Decree no. 58/1998 ........................... 178

STATEMENT RELATING TO THE SEPARATE FINANCIAL STATEMENTS PURSUANT TO ART. 154 BIS,

PARAGRAPH 5 OF ITALIAN LEGISLATIVE DECREE NO. 58/1998 ............................................................ 179

Independent Auditors' Report to the Separate Financial Statements ............ 180

Board of Statutory Auditors' Report .................................................................. 189

IEG Group structure