Carraro Group: Draft Financial Statements for 2019 Approved by the Board of Directors.

The year shows a decrease in volumes linked to a generalised slowdown in the global economy and to an increase in de-stocking in India and the United States.

A good result was consolidated in terms of margins and net profit. The fixed costs structure allowed the Group to absorb significant drops in volumes, ensuring an adequate profitability profile.

The BoD approved a reorganisation project aimed at further supporting the Group's international growth.

• 2019 consolidated turnover at 548.8 million Euros, a 12% decrease compared to 624.1 million Euros as at 31.12.2018
• Consolidated EBITDA equal to 42.7 million Euros (7.8% of turnover) compared to 51.9 million Euros (8.3% of turnover) as at 31.12.2018
• Consolidated EBIT equal to 22.5 million Euros (4.1% of turnover) compared to 31.3 million Euros (5% of turnover) as at 31.12.2018
• Consolidated net profit equal to 8.1 million Euros (1.5% of turnover) compared to 12.2 million Euros (1.9% of turnover) as at 31.12.2018
• Consolidated net financial position as at 31.12.2019 negative for 123.6 million Euros, a decrease both compared to the 155.1 million Euros recorded at 30.06.2019 and compared to the 156.6 million Euros at 31.12.2018

At the beginning of March, the forecast for the entire year 2020 show a slight increase in volumes compared to last year.

Looking at the contingent situation, estimates in India and China remain unchanged while programming difficulties for Europe and the United States are recorded.

'Despite the drop in sales in 2019, a good result is consolidated in terms of margins and net profit. The structure of fixed costs allows us to absorb significant drops in volumes, ensuring an adequate profitability profile', comments Enrico Carraro, Chairman of the Group.

'The order book at the beginning of the year is potentially growing compared to expectations, above all thanks to the recovery of volumes in the Asian area, India and China in particular. - adds Enrico Carraro - At now, our factories are operating regularly and some delays recorded at the the beginning of this situation has been reabsorbed allowing the activities to continue efficiently. However, the uncertainty of the impact that could cause the spread of the Covid-19 virus globally remains strong'.

'During today's Board of Directors, an important reorganization of the Group was also aimed at further supporting our growth internationally. On the one hand Carraro Drivetech Italia SpA, will be the head of Italian companies and businesses, and on the other Carraro International SE, a company governed by European law, will head the International ones. This is a structure that will allow us to have greater efficiency in terms of organization and management ', closes Enrico Carraro.