2020 Operating Budget Financial Impact Update Due to COVID-19

In addition to the cancellation of shows/meetings, Tenants such as Liberty Grand, QE Theatre, Aqua Dolce Resto Venue and Medieval Times have been completely closed while other tenants have opened in very limited capacity and therefore the loss of related ancillary revenue, such as Parking and Show Services result from their closure. 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 the majority of events up to December 31, 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 cash shortfall requirements. Show Organizers and Meeting Planners of these cancelled events and conventions are requesting a full refund of their space rental fees due to Force Majeure. The Board approved 2020 Operating Budget is a surplus of $500,000. As at October 31, 2020 the forecasted impact from COVID-19 to the Boards 2020 Operating Budget before funding from the City is a pressure of $16.479 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. The Board has previously received a report on the 2020 operating results updates from the impact of COVID-19 at its meeting of June 24, September 18, and now at the December 8, 2020 Board meeting. This report will be the last update for 2020 until the Board received the final 2020 audited financial statements in 2021 which will reflect actual performance.