Item - 2026.EP25.1

The Chief Executive Officer, Exhibition Place, recommends that the Board of Governors of Exhibition Place:

1. Approve the 2027 Operating Budget attached as Appendix A.

2. Direct the Chief Executive Officer to submit the 2027 Operating Budget to the City Financial Planning Division as part of the 2027 Budget Process.

3. Approve a one-time principal repayment of the conference centre loan of up to $5.000 million on December 1, 2026.

Toronto, North America’s 4th largest City is home to Exhibition Place. The site currently hosts more than 2,000 events annually with approximately 5.50 million visitors per year for exhibitions, conventions, events, entertainment, sports and other activities. Exhibition Place is evolving into a year-round destination, offering a broad range of events and experiences. The location is accessible and pedestrian-friendly, attracting visitors from local neighborhoods, across Canada, and internationally.

The Exhibition Place Strategic Plan is transitioning from the 2022–2026 framework to a comprehensive, multi-year Exhibition Place Vision Plan, endorsed in principle by the Board of Governors. The Vision Plan will provide a new strategic framework to collaborate with clients, tenants, stakeholders, partners, residents, and visitors to transform Exhibition Place into a more connected, accessible, and vibrant year-round destination.

2027 Budget

On June 1, 2026, Mayor Chow and Budget Chief Councillor Carroll issued budget directions to all City divisions, agencies, boards, and commissions, emphasizing the effective delivery of priority services, long-term financial sustainability, and the identification of operating efficiencies to support a balanced 2027 budget. Accordingly, all divisions and agencies are required to develop their 2027 operating budget submissions based on a 0% net budget increase.

After accounting for a $2.200 million surplus remittance to the City for general use purposes and assuming a $5.000 million lump-sum payment to be made to City of Toronto on December 1, 2026, to reduce the Conference Centre City loan principal. The Exhibition Place Conference Centre Reserve Fund is projected to have a balance of $5.940 million at year-end 2026. The reserve fund serves as a key funding source for both state-of-good-repair capital requirements and Conference Centre loan repayments.

The latest findings from the Global Exhibition Barometer research concluded in June 2026 by UFI, with respects to the Global Association of the Exhibition highlights the continued resilience of the global exhibition industry despite geopolitical uncertainty. At the time of the survey, 90% of companies outside the Gulf Cooperation Council (GCC) reported little to no anticipated impact from developments in the Middle East. The industry outlook remains positive, with 27% of companies expecting annual revenue growth above 5% and 38% forecasting stable revenues. Strong 2025 performance is reflected in 37% of companies reporting operating profit growth exceeding 10%, while 50% maintained stable profits. Looking ahead, domestic economic conditions remain the primary short-term concern, while global economic trends are viewed as the key medium-term challenge. Meanwhile, AI adoption continues to accelerate across the industry, driving innovation and operational efficiency.

Despite all the challenges from bouncing back after the pandemic and the current state of home economy, our operation is progressing very well; our events revenue, optimistically continues to grow, following same trends as other businesses in the same industry.

Schedule A

The proposed 2027 Operating Budget will result in a net loss (i.e. net expenditure) of $0.700 million.

*Projection based on 9-Month Variance. 2026 forecast includes contribution from FIFA World Cup 2026 and other one-off large events.

**YOY comparison based on approved positions. The reduction YOY is due to FIFA.

*** 2025 actual net expenditures exclude 0.45 million fundings support received from City post pandemic

The 2027 Operating Budget submission for Exhibition Place is aligned with recent operating performance and prior year experience. As of September 30, 2026, Exhibition Place has projected a year-end net surplus of $2.200 million, which is consistent with the approved 2026 Operating Budget. The projected net surplus is primarily attributable to incremental revenues from one-time large-scale events, partially offset by lower net naming rights revenue. In addition, $9.192 million has been allocated to address critical priorities, including $4.192 million for the replacement of aging equipment and backlog repairs, and $5.000 million for anticipated Conference Centre loan principal repayments to City.

Management has made every effort to minimize 2027 base budget pressures while maintaining current service levels and advancing strategic objectives. The budget incorporates all available revenue opportunities, including fee increases and volume-based adjustments, to support a balanced and sustainable financial plan.