2020 Operating Budget Financial Impact Update Due to COVID-19

The Boards operations are highly dependent on the cash flow and net income from our trade and consumer shows, conferences, conventions, socials, galas, meetings and tenants operations. Since early in March, given the rise in concern over COVID-19, staff has been monitoring its cash flow from operations on a daily basis and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc. Given the cancellation / postponement of all events up to June 30, 2020 Exhibition Place staff has been in constant communications with the City Managers Office and the City Financial Planning Department regarding financing opportunities to cover the Boards next 3-5 month cash shortfall requirements. Show Organizers of these cancelled events are requesting full refund of their space rental fees due to Force Majeure. The Board approved 2020 operating budget is a surplus of $500,000. The estimated impact from COVID-19 to the Boards operating budget as at May 31, 2020 is a reduction of net income/surplus of $14.497 million (Schedule A). The loss of net income and resultant cash flow is a concern not only to Exhibition Place, but also to the City of Toronto as the Board operates, manages and maintains Exhibition Place on behalf of the City, and the City is entitled to any surplus resulting from the Board's activities, and is responsible for any deficit the Board incurs.