2022 Operating Budget Financial Impact Update Due To COVID-19

· - With attendance being lower there will be lower ancillary revenue such as parking and show services. - There will be additional costs and procedures associated with the delivery of food and beverage due to COVID-19, and as well due to the anticipated reduction of attendance, revenue, and the associated commission the Board receives will be lower. · - Tenants will experience the same trends as the Board and as such the Board anticipates lower services revenue from tenants. - There is still volatility associated with the economy and as such non-essential costs have been delayed/deferred, and discretionary expenditures such as travel, training, etc. has been reduced. COVID-19 costs include both ongoing day to day service costs, as well as restart, recover and rebuild costs. Since our submission, due to the omicron variant the pandemic continued and there were additional cancellations / postponement of events through the period January to April 2022, which was not anticipated at the time of the budget. This impacted the Tenants operations as well. Exhibition Place met with City Financial Planning Department and advised of the impact this would have on our 2022 Operating Budget, as well as the Boards cash shortfall requirements in late fall. 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 the start of the pandemic, given the rise in concern over COVID-19, staff have been monitoring its cash flow from operations daily and have put a hold on all non-essential costs and discretionary expenditures such as travel, training, etc. The Board/City approved 2022 operating budget is a Budget Loss of ($3.300) million. The estimated impact from COVID-19 to the Boards operating budget as at April 30, 2022 is an additional pressure of ($1.600) million for an overall forecasted net loss of ($4.900) million before any City funding. The Boards approved 2022 Budget prepared in August 2021 included the assumption that events as well as tenants' operations would become normal and starting to reopen in January 1, 2022, which did not occur. The additional pressure of ($1.600) million from lost business on the Boards operations and resultant cash flow is a continued 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.