Reno De Medici S p A : Report Financial Half-yearly

Half-yearly

Financial

Report

06302021

NET REVENUES: €311.6 MILLION

(COMPARED WITH €290.1 MILLION AS AT JUNE 30, 2020)

GROSS OPERATING PROFIT (EBITDA): €17.4 MILLION (COMPARED WITH €42.3 MILLION AS AT JUNE 30, 2020)

OPERATING PROFIT (EBIT): €2.6 MILLION (COMPARED WITH €27.7 MILLION AS AT JUNE 30, 2020)

NET RESULT BEFORE DISCONTINUED OPERATIONS: PROFIT OF €0.8 MILLION (COMPARED WITH A PROFIT BEFORE DISCONTINUED OPERATIONS OF €20.4

MILLION AS AT JUNE 30, 2020)

NET PROFIT (LOSS) FOR THE PERIOD: NET PROFIT OF €3.4 MILLION (NET PROFIT OF €24.9 MILLION AS AT JUNE 30, 2020)

NET FINANCIAL POSITION: €9.6 MILLION (-€8.9 MILLION AT DECEMBER 31, 2020)

Reno De Medici S.p.A.

Milano, Viale Isonzo 25

Capitale sociale Euro 140.000.000

Codice fiscale e Partita IVA 00883670150

CONTENTS
1. BOARD OF DIRECTORS AND AUDITORS..............................................................................................................................	4
2. GROUP OPERATING COMPANIES AS AT JUNE 30, 2021.................................................................................................	5
3. INTRODUCTION............................................................................................................................................................................	6
4. DIRECTORS' REPORT ON OPERATIONS...............................................................................................................................	6
FINANCIAL PERFORMANCE - SECOND QUARTER 2021...................................................................................................	14
MAIN RISKS AND UNCERTAINTIES TO WHICH THE RENO DE MEDICI GROUP IS EXPOSED ..............................	15
OTHER INFORMATION ................................................................................................................................................................	16
RATIONALE......................................................................................................................................................................................	16
OUTLOOK .........................................................................................................................................................................................	19
INTRAGROUP AND RELATED-PARTY TRANSACTIONS ...................................................................................................	20
5. CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AS AT JUNE 30, 2021 ........................	23
5.1. CONSOLIDATED STATEMENT OF INCOME...................................................................................................................	23
5.2. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME...............................................................................	24
5.3. CONSOLIDATED STATEMENT OF FINANCIAL POSITION ........................................................................................	25
5.4. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY ................................................................................	27
5.5. CONSOLIDATED STATEMENT OF CASH FLOWS .........................................................................................................	28
5.6. NOTES TO THE FINANCIAL STATEMENTS....................................................................................................................	29
5.6.1 ACCOUNTING STANDARDS AND VALUATION CRITERIA......................................................................................	29
5.6.2 FINANCIAL RISK MANAGEMENT POLICY ...................................................................................................................	32
5.6.3 SCOPE OF CONSOLIDATION ............................................................................................................................................	36
5.6.4. NOTES TO THE FINANCIAL STATEMENTS FOR THE FIRST HALF OF 2021 ..................................................	38
SEGMENT INFORMATION...........................................................................................................................................................	38
1. REVENUES FROM SALES .........................................................................................................................................................	40
2. OTHER REVENUES AND INCOME.........................................................................................................................................	40
3. CHANGE IN INVENTORIES OF FINISHED GOODS ...........................................................................................................	40
4. COST OF RAW MATERIALS AND SERVICES......................................................................................................................	41
5. PERSONNEL COSTS...................................................................................................................................................................	41
6. OTHER OPERATING COSTS ...................................................................................................................................................	41
7. AMORTIZATION AND DEPRECIATION ..............................................................................................................................	42
8. NET FINANCIAL INCOME (EXPENSE) .................................................................................................................................	42
9. INCOME (LOSSES) FROM EQUITY INVESTMENTS .........................................................................................................	43
10. TAXES .........................................................................................................................................................................................	43
11. DISCONTINUED OPERATIONS ...........................................................................................................................................	43
12.	TANGIBLE FIXED ASSETS ...................................................................................................................................................	47
13. RIGHTS OF USE........................................................................................................................................................................	48
14. GOODWILL................................................................................................................................................................................	48
15.	INTANGIBLE FIXED ASSETS...............................................................................................................................................	48
16.	EQUITY INVESTMENTS........................................................................................................................................................	48
17.	TRADE RECEIVABLES AND RECEIVABLES FROM ASSOCIATES AND JOINT VENTURES...............................	49
18.	INVENTORIES..........................................................................................................................................................................	50
19.	OTHER RECEIVABLES (CURRENT AND NON-CURRENT).........................................................................................	50
20.	NET FINANCIAL POSITION.................................................................................................................................................	51
21. SHAREHOLDERS' EQUITY....................................................................................................................................................	57
22.	OTHER CURRENT PAYABLES AND OTHER PAYABLES TO ASSOCIATES AND JOINT VENTURES..............	57
23.	EMPLOYEE BENEFITS ..........................................................................................................................................................	57
24.	NON-CURRENT AND CURRENT PROVISIONS FOR RISKS AND CHARGES ..........................................................	58
25. CURRENT TRADE PAYABLES AND PAYABLES TO ASSOCIATES AND JOINT VENTURES...............................	58
26. NON-RECURRING TRANSACTIONS..................................................................................................................................	58

27. CONTINGENT LIABILITIES AND COMMITMENTS AND OTHER GUARANTEES GIVEN TO THIRD PARTIES

.......................................................................................................................................................................................................58

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5.7 RELATED-PARTY TRANSACTIONS...................................................................................................................................	59
5.8. LAWSUITS AND ARBITRATION PROCEEDINGS..........................................................................................................	61
5.9. SUBSEQUENT EVENTS .........................................................................................................................................................	61
6. LIST OF INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES ....................................................................................	63

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1. BOARD OF DIRECTORS AND AUDITORS

Board of Directors
Eric Laflamme	Chairman
Michele Bianchi	Chief Executive Officer
Allan Hogg	Director
Giulio Antonello	Director
Gloria Francesca Marino	Director
Laura Guazzoni	Director
Sara Rizzon	Director
Board of Statutory Auditors
Diana Rizzo	Director
Gian Carlo Russo Corvace	Statutory Auditor
Tiziana Masolini	Statutory Auditor
Domenico Maisano	Deputy Statutory Auditor
Alessandra Pederzoli	Deputy Statutory Auditor
Independent Auditors
PricewaterhouseCoopers S.p.A.

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2. GROUP OPERATING COMPANIES AS AT JUNE 30, 2021

The graph below summarizes the companies of the Reno De Medici Group ("RDM Group" or "Group").

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