B&C Speakers S p A : 2021-05-14 INTERIM REPORT as at 31 March 2021

GRUPPO B&C SPEAKERS

INTERIM REPORT as at 31 March 2021

The Board of Directors of May, 14th 2021

INDICE

B&C SPEAKERS GROUP - CORPORATE BODIES ..................................................................	3
INTRODUCTION ...............................................................................................................	4
MAIN ASPECTS OF THE PERIOD FROM JANUARY TO MARCH 2021 .....................................	4
ECONOMIC, ASSET AND FINANCIAL MANAGEMENT RESULTS ............................................	4
STATEMENT OF CHANGES IN EQUITY ..............................................................................	10
NET FINANCIAL POSITION...............................................................................................	10
SIGNIFICANT EVENTS OCCURRING AFTER MARCH 31, 2021 .............................................	11
BUSINESS OUTLOOK FOR THE ENTIRE 2021 FISCAL YEAR .................................................	11
SHARE PERFORMANCE ...................................................................................................	12
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED INCOME STATEMENT RELATING TO
MARCH 31, 2021 ......................................................................................................	13
CERTIFICATION OF FINANCIAL REPORTING MANAGER PURSUANT TO ARTICLE 154-BIS,
PARAGRAPH 2 OF LEGISLATIVE DECREE NO. 58/1998. ...............................................	15

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• THE B&C SPEAKERS GROUP - Corporate bodies

Board of Directors
Chairperson:	Roberta Pecci
Chief Executive Officer:	Lorenzo Coppini
Director:	Alessandro Pancani
Director:	Francesco Spapperi
Independent Director:	Raffaele Cappiello
Independent Director:	Veronica Tonini
Independent Director:	Gabriella Egidi

Board of Auditors
Chairperson:	Riccardo Foglia Taverna
Regular Auditor:	Giovanni Mongelli
Regular Auditor:	Sara Nuzzaci
Alternate Auditor:	Diana Rizzo
Alternate Auditor:	Adriano Moracci

Financial Reporting Manager

Francesco Spapperi

Independent auditing firm

PricewaterhouseCoopers S.p.A.

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Introduction

The valuation and measurement criteria adopted in the preparation of the condensed consolidated financial statements at March 31, 2021, included in this interim management report, are those established by the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB) and adopted by the European Commission according to the procedure set out in Article 16 of the European Regulation n. 1606/2002 of the European Parliament and of the Council of 19 July 2002, with particular reference to IAS 34 concerning interim financial statements. These accounting standards are the same as those used for the preparation of the consolidated financial statements at December 31, 2020.

This interim report has not been audited.

Main aspects of the period from January to March 2021

During the first three months of 2021, the Parent Company continued the execution of the Buy-Back plan for its own shares. With reference to March 31, 2021, the treasury shares held amounted to n. 64,134 shares, representing 0.58% of the share capital.

Measures aimed at mitigating the economic and financial impact of the Covid-19 emergency

In continuity with what was has already described in the Separate and consolidated financial statements as at 31 December 2020, the Company maintained the cost containment and efficient financial management actions listed at the time.

The set of measures put in place is considered capable of guaranteeing liquidity and financial solidity to meet all the needs that may arise during the current crisis.

Regarding the health measures taken, the two Group production companies proceed with a continuous monitoring of the specific health protocol, which provides for the application of all the protection and containment measures established by the various rules and regulatory interventions (national and regional) which occurred during the period in question, representing the necessary precondition to allow the reopening of production activities, and also their continuation in a context of safety and respect for the workers' health.

Information on ownership structure

At the date of preparation of this report, official data indicate the following significant shareholders:

• Research & Development International S.r.l. which holds a 54.00% stake (Parent Company);
• Lazard Investissement Microcap which holds 3.59%;
• Berenger European Micro Cap holding 3.52%;
• First Capital S.p.A. which holds 3.20%.

Economic, Asset and Financial management results

This Interim Report at 31 March 2021 contains the information required by art. 154 ter of the T.U.F.

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The IFRS accounting standards used by the Group are the same as those applied in the preparation of the financial statements for the year ended on December 31, 2020, to whom they refer.

In particular, as required by IFRS, a provision was made for the carrying out of estimates and the formulation of assumptions, which are reflected in the determination of the carrying amounts of assets and liabilities, including potential assets and liabilities at the end of the period. These estimates and assumptions are used specifically for determining amortisation and depreciation, impairment testing of assets (including the measurement of receivables), provisions, employee benefits, deferred tax assets and liabilities. Therefore the final results could differ from these estimates and assumptions; moreover, the estimates and assumptions are reviewed and updated periodically and the effects of each change are immediately reflected in the financial statements.

Below are the financial statements and the explanatory notes to the statements. All values are expressed in euros, unless otherwise indicated. The financial, economic and asset data presented, are compared with the corresponding figures of 2020.

These financial statements, prepared in accordance with the requirements of art. 154 ter of the T.U.F., report the positive and negative components of income, the net financial position, divided between short, medium and long term items, as well as the Group's financial position. In view of this, the financial statements presented and the relative explanatory notes, were prepared for the sole purpose of compliance with the provisions of the aforementioned Issuer Regulations, are devoid of certain data and information that would be required for a complete representation of the financial position and the results of the Group for the quarter ended at September 30, 2020 in accordance with IFRS principles.

B&C Speakers is a key international entity in the production and marketing of "top quality professional loudspeakers"; owing to the nature and type of business carried on, the Group operates exclusively in this sector, both nationally and internationally.

Products are manufactured and assembled at the Italian production plant of the Parent Company and the subsidiary Eighteen Sound S.r.l., which also deals directly with marketing and sales in the various geographical areas covered.

Distribution in the US market is handled through the American subsidiary B&C Speakers NA LLC, which also offers support services for sales to local customers.

Distribution in the Brazilian market is handled through the subsidiary B&C Speakers Brasil LTDA.

Below is the table showing the Group's economic performance during the first three months of 2021 compared with the figures for the same period of 2020.

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