F I L A Fabbrica Italiana Lapis ed Affini S p A : November - CET 6.00 PM - PR 9M 2020 Results

PRESS RELEASE

BOD OF F.I.L.A. S.P.A. APPROVES 9M 2020 RESULTS

REVENUE OF EURO 471.3 MILLION (-10.7% AT LIKE-FOR-LIKE EXCHANGE RATES)

FINE ART, HOBBY & DIGITAL +13.8%, PARTICULARLY IN NORTH AMERICA AND

EUROPE, PICKING UP IN Q3

SCHOOL & OFFICE -19.6%, OF WHICH APPROX. 60% DUE TO CONTINUED LOCKDOWN

IN INDIA AND MEXICO

ADJUSTED EBITDA OF EURO 78.1 MILLION (-12.4%AT LIKE-FOR-LIKE

EXCHANGE RATES)

SIGNIFICANT IMPROVEMENT IN Q3 TO EURO 31.9 MILLION (+6.6%) AND QUARTERLY MARGIN ON REVENUES OF 18.7%, COMPARED TO 16.2% IN SAME PERIOD OF 2019, THANKS TO FINE ART, HOBBY & DIGITAL GROWTH AND FIXED COSTS CONTAINMENT

IMPROVED NET BANK DEBT OVER LAST 12 MONTHS FOR EURO 70.8 MILLION,

EXCLUDING OUTLAY FOR ACQUISITION OF ARCHES®

AND INCLUDING EXCHANGE GAINS

• Revenue in 9M 2020 of Euro 471.3 million, -12.0% on the same period of the previous year (Euro 535.9 million in 9M 2019), -10.7% at like-for-like exchange rates; organic Fine Arts growth of 13.8%, significantly picking up in Q3, mainly on the North American and European markets, was partially offset by the School & Office contraction (-19.6%), of which approx. 60% in India and Mexico due to COVID-19 outbreak and consequent lockdown, despite gradual recovery in Europe in Q3;
• Adjusted EBITDA net of IFRS 16 effects in 9M 2020 of Euro 78.1 million, -11.5%(-12.4% at like-for-like exchange rates) compared to 9M 2019 (Euro 88.2 million), due to impacts of COVID-19 and consequent lockdown on volumes, mainly in India and Mexico; margin of 16.6% improves on same period of the previous year (16.5% in 9M 2019), thanks to growing contribution of Fine Art segment to revenues, boosting EBITDA to Euro 31.9 million and margin to 18.7% in Q3 2020 (Euro 29.9 million and 16.2% in Q3 2019) and key management initiatives to contain fixed costs;

• Adjusted Group Net Profit, excluding IFRS 16 effects, in 9M 2020 of Euro 21.5 million, compared to Euro 33.1 million in the same period of the previous year. The contraction was mainly due to the decrease in EBITDA and higher financial expense, exclusively due to exchange losses;
• Net Bank Debt falls Euro 23.0 million in the last 12 months, despite the outlay of Euro 43.6 million for the acquisition of ARCHES® and Euro 4.2 million for related consulting and other fees, with exchange gains of Euro 22.5 million. Over the last 12 months, it has therefore decreased Euro 70.8 million;
• Free Cash Flow to Equity worse by Euro 13.2 million compared to 9M 2019, although in line with expectations, due to contraction in EBITDA, consultancy costs and expenses for acquisition of ARCHES® and increased inventory levels, mainly in North America and Mexico due to the impacts on sales related to the back-to-school delay caused by COVID-19;
• The available liquidity and existing bank lines appear adequate to cover the current and future operating requirements of the F.I.L.A. Group. It was negotiated in advance with the structured debt lending banks that no default shall be linked to any failure to comply with the financial covenants at December 2020 ("holiday covenants");
• At September 30, the Group's plant are all operational, in accordance with the regulations for each country, although not at fully capacity in view of individual production demands.
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Pero, November 13, 2020 - The Board of Directors of F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. ("F.I.L.A." or the "Company"), listed on the Milan Stock Exchange, STAR Segment, ISIN code IT0004967292, today discussed and approved the consolidated results at September 30, 2020, prepared according to IFRS.

F.I.L.A. - a Company which operates in the creativity tools market - producing design, colouring, writing and modelling objects - reports 9M 2020 revenue of Euro 471.3 million, down 12.0% (- 10.7% net of exchange effects).

Adjusted EBITDA in 9M 2020 of Euro 78.1 million was down 11.5% on 9M 2019 (-12.4% at like- for-like exchange rates). The Adjusted Profit after extraordinary items, IFRS 16 effects and minorities is Euro 21.5 million, compared to Euro 33.1 million in 9M 2019.

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"The positive results in the first nine months of the year confirmed that, despite the outbreak of the COVID-19 pandemic globally, the Group's decision to invest in the Fine Art's segment - a key objective of the stock market listing - was central to the development and future growth of both revenue and margins. The Group reorganisation, mainly in this segment and which was a focus of 2018 and 2019, is now complete and the major personnel and financial commitment is now paying off, even within the current challenging operating environment. Mexico and India - extremely important markets for us - are still in lockdown, although the pandemic curve is decreasing and within a few weeks we expect schools to reopen and revenue and organic growth to fully recover. The Q3 results also confirm that March's guidance, issued in the middle of the COVID-19 emergency, seems very accurate and therefore reflects management's capacity to manage the business, the supply chain and costs, also thanks to the new Group ERP system" stated Massimo Candela CEO of F.I.L.A.. "The credit lines available from our long-standing financial partners, the cash flow generated and available cash, the commitment to continue over the coming years to improve the ratio between working capital and revenue, are all aspects indicating that the company can, once the COVID-19 emergency is behind us, continue on its strategic growth path".

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Adjusted operating performance net of IFRS 16 effects - F.I.L.A. GROUP

Revenue of Euro 471.3 million decreased on 9M 2019 by Euro 64.5 million (-12.0%). Net of exchange losses of Euro 7.4 million (mainly the depreciation of the Indian Rupee and the Central-

South American currencies), the organic contraction was Euro 57.1 million (-10.7%).

This decrease, improving on the first half of 2020 thanks to the partial reopening of schools in Europe and North America and the excellent Fine Art business performance in the third quarter, relates to the global contraction in consumption as a result of the COVID-19 pandemic and particularly the closure of schools, which extended far beyond initial expectations in India and Mexico, regions in which the schools-related business and the significant lack of alternative online sales channels are important factors. Looking to the geographical segments, this reduction mainly related to Asia for Euro 24.0 million (-37.6%),Central-South America for Euro 22.1 million (- 45.6%), Europe for Euro 7.1 million (-4.2%), North America for Euro 4.2 million (-1.6%) and was

partially offset for Euro 0.3 million (+14.4%) by the increase in the Rest of the World.

2020 Revenue includes from March 2020 that of Fila Arches for Euro 3.1 million, while 2019 Revenue included that from the "Superior" brand for Euro 5.4 million, which was sold in October

2019.

Other Revenue of Euro 6.2 million increased on the comparative period by Euro 0.8 million,mainly due to higher exchange gains on commercial transactions.

Operating costs in 9M 2020 of Euro 399.5 million decreased by Euro 53.6 million on the same period of 2019, due to the reduction in revenue and management's actions to contain commercial, marketing, administrative and personnel costs. The reduction of the latter was achieved also through the use of accrued holidays, mechanisms similar to the lay-off scheme and throughreducing the temporary workforce, where achievable.

EBITDA was Euro 78.1 million, down Euro 10.1 million on 2019 (-11.5%) although with the margin improving on the previous year as a combined effect of increased Fine Art business and the reduction in schools revenue in the lower-margin geographic areas (India and Mexico).

The EBITDA in 2020 includes from March 2020 that of Fila Arches for Euro 1.5 million, while 2019 EBITDA included that of the "Superior" brand for Euro 1.0 million, which was sold in October 2019.

The adjustment on the 9M 2020 EBITDA relates to non-recurring operating charges of approx. Euro 9.5 million, mainly for the charges concerning the transaction for the acquisition of the ARCHES® business unit, for Euro 4.7 million, the costs incurred to deal with the COVID-19 pandemic for Euro 3.0 million and, residually, reorganisation costs of the F.I.L.A. Group, particularly in North America for Euro 1.5 million.

EBIT of Euro 53.2 million decreased by Euro 12.1 million (-18.5%) compared to the first nine months of 2019, and includes amortisation, depreciation and write-downs of Euro 24.9 million, increasing by approx. Euro 2.0 million, mainly due to the increased amortisation and depreciation recorded in the period for the investments made, and the increase in accruals to cover the greater doubtful debt risk as a result of COVID-19.

The overall adjustment of the EBIT was Euro 9.5 million, resulting from the aforementioned effects on the EBITDA.

Net Financial Expense increased by Euro 6.4 million, mainly due to greater negative currency effects on financial transactions.

The adjustment to Net Financial Expense refers to the financial expense incurred by the Parent F.I.L.A. S.p.A. for the signing of a new loan to support the M&A transaction.

Group adjusted income taxes totalled Euro 8.5 million.

Net of the profit attributable to non-controlling interests, the F.I.L.A. Group Adjusted Net Profit in 9M 2020 was Euro 21.5 million, compared to Euro 33.1 million in the same period of the previous year.

The adjustment to the 9M 2020 Profit attributable to the owners of the parent concerns the aforementioned adjustments, net of the tax effect.

Statement of Financial Position review - F.I.L.A. Group

The F.I.L.A. Group's Net Invested Capital in 9M 2020 of Euro 910.5 million, comprises Net Fixed Assets of Euro 628.2 million (increasing on December 31, 2019 by Euro 7.9 million), Net Working Capital of Euro 343.0 million (increasing on December 31, 2019 by Euro 48.1 million) and Other Non-Current Assets/Liabilities of approx. Euro 19.4 million (increasing on December 31, 2019 by Euro 1.1 million), net of Provisions of Euro 80.1 million (Euro 78.0 million at December 31, 2019).

Intangible Assets increased on December 31, 2019 by approx. Euro 19.0 million, mainly due to the acquisition of the business unit of the ARCHES® brand products, which generated Goodwill of Euro 21.2 million, Brands of Euro 12.4 million and Customer Relationships of Euro 10.4 million. The above intangible assets were measured through Purchase Price Allocation, carried out as per the applicable reporting standards. In addition were recorded net investments of Euro 1.4 million, principally by the parent F.I.L.A. S.p.A. (Euro 1.2 million) for the installation of the SAP system, amortisation in the period of Euro 11.1 million and exchange losses in the period of Euro 15.4 million.

Property, plant and equipment decreased on December 31, 2019 by Euro 10.8 million, mainly due to the decrease of Euro 5.0 million for "Buildings" and of Euro 4.4 million for "Plant and Machinery".

Net investments in Property, Plant and Equipment in the period amounted to Euro 6.7 million and were principally undertaken by DOMS Industries Pvt Ltd (India) and Dixon Ticonderoga Company (U.S.A.), Grupo F.I.L.A. - Dixon, S.A. de C.V. (Mexico) and Canson SAS (France) for the extension and development of the local production and logistics sites. In addition, an M&A related increase of Euro 4.3 million is recorded, including Euro 13 thousand of notary fees. The movement is offset by depreciation of Euro 12.3 million and exchange losses of Euro 4.8 million.

Financial assets decreased by Euro 0.2 million compared to December 31, 2019 and mainly concerned financial receivables.

The increase in Net Working Capital of Euro 48.1 million relates to the following:

• Inventories - increasing Euro 12.8 million, mainly due to the net increase in stock at the F.I.L.A. Group, for Euro 24.7 million, in particular North America, Mexico and France, in line with the contraction in revenue and the postponed fulfilment of orders to subsequent quarters, due to the COVID-19 pandemic, in addition to the impact of the change in the consolidation scope of Euro 2.7 million during the period. This increase was significantly offset by exchange losses of approx. Euro 14.6 million;
• Trade Receivables and Other Receivables - increasing Euro 33.5 million due to the seasonality of the F.I.L.A. Group's business, although to a lesser extent than normally due to the contraction and deferment of revenue to the subsequent quarters of the year due to the COVID-19 pandemic. This trend mainly concerned F.I.L.A. S.p.A., Dixon Ticonderoga Company (U.S.A.), and Fila Iberia (Spain) and was offset by net exchange losses of Euro 12.9 million;
• Trade Payables and Other Payables - reducing Euro 4.3 million, mainly due to the decrease in VAT payables of Euro 2.5 million and a decrease in other payables of Euro 1.7 million.

The increase in Provisions on December 31, 2019 of Euro 2.1 million principally concerns the:

• Increase in "Deferred tax liabilities" of Euro 4.2 million, principally due to the tax effect concerning "Intangible Assets", recognised as a result of the acquisition of the ARCHES® business unit for Euro 7.5 million. The change was offset by exchange gains of Euro 2.8 million;
• Decrease in Provisions for Risks and Charges of Euro 1.0 million, due to utilisations in the period, principally by the North American subsidiary;
• Reduction in "Employee benefits" of Euro 1.1 million, mainly due to the actuarial gains recorded by the company Daler Rowney Ltd (United Kingdom).

F.I.L.A. Group Equity of Euro 341.5 million, decreasing on December 31, 2019 by Euro 15.9 million. Net of the profit of the period of Euro 12.3 million (of which a loss of Euro 0.5 million concerning non-controlling interests), the residual movement mainly concerned the increase in the negative currency reserve of Euro 21.5 million and the decrease in the fair value hedge of the IRS derivatives for Euro 7.7 million, partially offset by the "Actuarial Profits/Losses" reserve of Euro 1.3 million.

The F.I.L.A. Group Net Financial Position at September 30, 2020 was a net debt of approx. Euro 569.0 million, increasing on December 31, 2019 by Euro 70.8 million.

The net cash flows absorbed in the first nine months of 2020 by Operating Activities amounted to Euro 10.0 million (in 9M 2019 a cash generation of Euro 12.4 million), due to:

• Generation of Euro 63.8 million (Euro 74.4 million at September 30, 2019) from cash flow from Operating profit, based on the difference between revenue and operating costs plus the remaining ordinary income components, excluding financial items;
• Outflows of Euro 73.8 million (outflow of approx. Euro 62.0 million in 9M 2019) attributable to Working Capital movements, primarily related to the increases in "Inventories" and "Trade Receivables and Other Receivables", partially offset by the decrease in "Trade Payables and Other Payables".

Investing activities absorbed liquidity of Euro 6.9 million (Euro 14.0 million in 9M 2019), mainly due to the use of cash for Euro 7.5 million (Euro 14.1 million in 9M 2019) for property, plant and equipment and intangible asset investment, particularly regarding DOMS Industries Pvt Ltd (India) and Dixon Ticonderoga Company (U.S.A.).

Cash flow from Financing Activities absorbed liquidity of Euro 16.8 million (absorption of Euro

22.0 million at September 30, 2019), mainly due to interest paid on loans and credit lines granted to Group companies.

Considering the currency effect from the translation of the net financial positions in currencies other than the Euro (positive for Euro 17.6 million), the negative adjustment to Mark to Market Hedging of Euro 7.6 million and the movement in the net debt due to the application of IFRS 16, equal to a negative Euro 6.3 million, and the negative impact generated by corporate transactions of Euro 43.6 million, due to the acquisition of the new business unit, the Group's Net Financial Position increased Euro 70.8 million (Euro - 131.0 million at September 30, 2019).

Significant events in 9M 2020 and subsequently

• On March 2, 2020, F.I.L.A.- Arches S.A.S., a French company wholly-owned by F.I.L.A, completed the purchase of the fine art business unit of the company specialised in fine art operating through the ARCHES® brand.
  For over 500 years, the ARCHES® brand has been one of the best-known global brands in the production and distribution of premium fine art paper. The company creates its products

utilising a particular "cylinder mould" technique which ensures the delivery of a highly crafted product and an inimitable natural appearance. Each production cycle is subject to numerous technical controls, which have always guaranteed the undisputed quality of the paper and its excellent brand reputation.

The total price, on a debt-freecash-free basis, paid by F.I.L.A. - Arches S.A.S. for the business unit was Euro 43.6 million. The acquisition was funded by amending the current medium/long-term loan contract, through the granting of new credit lines for Euro 15 million and the partial use of the RCF line for Euro 25 million, through its conversion into a medium/long-term credit line.

• Covid-19impacts:
  As known, since January 2020, on the Chinese market - and gradually from March 2020 across the rest of the world - the operating environment has been dominated by the spread of Covid-19 ("Coronavirus") and the resulting restrictive containment measures implemented by the public authorities of the countries affected. The current health emergency, in addition to the enormous social impacts, is having direct and indirect repercussions on the general economy and on the propensity to consume and invest, resulting in a generally uncertain environment.
  The F.I.L.A. Group monitored the developing situation in order to minimise its social, workplace health and safety, economic, financial and equity impacts, by drawing up and rolling out flexible and timely action plans. In particular, from the beginning the F.I.L.A. Group has worked tirelessly to ensure maximum health and safety levels for its employees, customers and suppliers. The Group promptly introduced a series of protective measures for personnel and activated its Crisis Response Protocol, immediately rolling out a series of measures at all levels of the organisation - both at headquarters and overseas - at the operational sites and at the production plant.
  In this regard, the Coronavirus related lockdown resulted in the closure of the Yixing facility from February 4 until February 21 and that of Kunshan from February 4 until February 28, the Indian facilities from March 22 until May 3, the Italian F.I.L.A. S.p.A. facilities from March 23 to April 10 and that of Industria Maimeri from March 16 to April 30, the Dominican Republic facilities from March 23 to April 3 and those in Mexico from April 6 to April 17.
  At the reporting date, the Group's plants are all operational, in accordance with the regulations for each country, although not at fully capacity in order to protect worker safety.

With the exception of India, where production and commercial activity was totally blocked for the entire month of April, shipments to customers have never stopped, although sometimes limited by logistical inefficiencies emerging during the lockdown period.

The majority of the Group companies updated their internal procedures to guarantee a safe workplace so as to minimise any infection risk, alternating, where possible, the physical presence of workers with remote working. All subsidiaries introduced all of the social security and corrective measures available to offset the drop in activity, such as containing all fixed costs related to activities not strictly necessary in 2020 and a similar deferment to 2021 of all those investments not considered strictly strategic in the current year.

Public aid has principally taken the form of social security schemes to contain labour costs (principally in Italy, France, Germany, United States and England), while there are no significant non-repayable grants. The impact on the business has mainly been a decrease in sales on the Chinese market in February and part of March, while the decrease in sales in the rest of the world has had a gradual impact only from the second half of March (we indicate the total blockage of the Indian market in April), with the exception of customers selling online and Major Retailers, where this impact was however minimal as the sales channels had been operative also in this period.

In the third quarter of 2020, the reopening of schools in Europe and North America, although not always with full physical attendance, allowed for a partial recovery of school- aged children product revenue, which did not materialise in India and Mexico due to the schools remaining closed and with the reopening date still not yet established. Fine art business unit revenue however has continued to consistently grow over the same period of the previous year.

With regard to potential financial stress scenarios, management has monitored and continues to monitor both the Group's current and future liquidity. In April, the first significant impacts on collection activities directly related to the worldwide spread of the Coronavirus became apparent. The Group therefore introduced a strict customer selection policy to limit future financial difficulties, limiting as much as possible exposure to customers considered most at risk and avoiding lengthening collection times where possible. In terms of suppliers, however, actions focused on identifying alternative sources of procurement in the case of any critical logistical or financial situations at the main suppliers; no significant criticalities have emerged to date however. No significant renegotiation of existing contracts with customers and suppliers is reported. At that date, the available liquidity appears adequate to cover current and future operating needs.

The medium/long-term debt of a nominal Euro 453 million is based on a bullet repayment plan (Euro 50.9 million in 2023 and Euro 253.8 million in 2024), with the amortizing part

settled through increasing instalments until maturity in 2023; the 2020 instalment amounts to Euro 11.9 million.

In addition, it was negotiated with the structured debt lending banks that no default shall be linked to any failure to comply with the financial covenants relating to the June 2020 and December 2020 tests ("holiday covenants"), while the margin to be used to calculate the interest shall continue to be that considering the financial statements for the year ended December 31, 2019 (in the case in which dividends are not distributed to shareholders of FI.L.A. S.p.A. during the second half of 2020). It is indicated however that at June 30, 2020 the financial covenants had been complied with.

The Group has carried out a further sensitivity analysis of the potential operating and financial impacts of the current crisis and has drafted a series of measures to limit these impacts, such as the containment of overheads and of the investments planned for 2020, described previously.

Consequently, as outlined above, the reduced expected revenue and the possible net working capital difficulties shall result in a reduced cash generation compared to the previous year, although these effects shall be offset by a number of actions taken by management, such as for example the postponement of certain non-strategic investments and the fixed costs containment.

It may be stated that Covid-19 to date has not halted or changed any of the Group's development plans and strategy, only acting to slow them.

The directors of F.I.L.A. S.p.A., considering the effects of the COVID-19 pandemic as a possible impairment indicator, in accordance with IAS 36 "Impairment of assets", in H1 2020 carried out an impairment test on goodwill and intangible assets with finite useful lives recognised in the financial statements in order to ascertain their recoverability. No impairment losses were recognised as a result.

Subsequent events

As regards the lockdown following the COVID-19 pandemic, at the date of this report, the Group's plant are operational, in accordance with the regulations for each country, though not at full capacity in order to protect worker safety, in particular in India and Mexico.

Outlook

The 2020 outlook will be affected by the instability resulting from the outbreak of Covid-19, which was disclosed in the "Significant events in the period" section. The F.I.L.A. Group continues to monitor the developing situation in order to minimise its social and workplace health and safety impacts, in addition to the operating, equity and financial situation, by drawing up and rolling out flexible and timely action plans.

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The IFRS consolidated financial statements and separate financial statements extracted from the approved document are attached.

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The Manager in charge of Financial Reporting, Mr. Stefano De Rosa, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries.

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F.I.L.A. (Fabbrica Italiana Lapis ed Affini), founded in Florence in 1920 and managed since 1956 by the Candela family, is a highly consolidated, dynamic and innovative Italian industrial enterprise and continues to grow market share. In November 2015, F.I.L.A. listed on the STAR segment of the Milan Stock Exchange. The company, with revenue of Euro 687.4 million in 2019, has grown significantly over the last twenty years and has achieved a series of strategic acquisitions, including the Italian Adica Pongo, the US Dixon Ticonderoga Company and Pacon Group, the German LYRA, the Mexican Lapiceria Mexicana, the English Daler-Rowney Lukas and the French Canson, founded by the Montgolfier family in 1557.F.I.L.A. is an icon of Italian creativity globally through its colouring, drawing, modelling, writing and painting tools, thanks to brands such as Giotto, Tratto, Das, Didò, Pongo, Lyra, Doms, Maimeri , Daler-Rowney, Canson, Princeton, Strathmore and Arches. Since its foundation, F.I.L.A. has chosen to focus on growth through continuous innovation, both in technological and product terms, in order to enable individuals to express their ideas and talent through tools of exceptional quality. In addition, F.I.L.A. and the Group companies work together with the Institutions to support educational and cultural projects which promote creativity and expression among individuals and make culture accessible to all.

F.I.L.A. currently operates through 22 production facilities (of which 2 in Italy) and 35 subsidiaries across the globe and employs over 10,000 people.

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For further information:

Investor Relations F.I.L.A.

Stefano De Rosa - Investor Relations Officer Francesca Cocco - Investor Relations [e-mail]

([phone]

For financial communication:

Community Strategic Communications Advisers Tel. [phone] [e-mail]

F.I.L.A Press OfficeCantiere di Comunicazione

Eleonora Galli: ([phone] - mob: [phone] [e-mail]

Antonella Laudadio: ([phone]

Attachment 1 - F.I.L.A. Group Consolidated Income Statement

	September % core business	September % core business	Change
Euro millions	2020	revenue	2019	revenue	2020 - 2019
Revenue	471,129	100%	535,858	100%	(64,729)	-12,1%
Other Revenue	6,752		5,542		1,210	21,8%
Total Revenue	477,881		541,400		(63,519)	-11,7%
Total operating costs	(399,354)	-84,8%	(451,156)	-84,2%	51,802	11,5%
EBITDA	78,527	16,7%	90,244	16,8%	(11,717)	-13,0%
Amortisation, depreciation and write-downs	(32,941)	-7,0%	(30,753)	-5,7%	(2,188)	-7,1%
EBIT	45,586	9,7%	59,491	11,1%	(13,905)	-23,4%
Net financial charges	(27,744)	-5,9%	(21,088)	-3,9%	(6,656)	-31,6%
Pre-Tax Profit	17,842	3,8%	38,403	7,2%	(20,561)	-53,5%
Total income taxes	(5,514)	-1,2%	(11,916)	-2,2%	6,402	53,7%
Net profit - Continuing Operations	12,328	2,6%	26,486	4,9%	(14,158)	-53,5%
Net Profit for the period	12,328	2,6%	26,486	4,9%	(14,158)	-53,5%
Non-controlling interest profit	(0,461)	-0,1%	1,308	0,2%	(1,769)	-135,2%
F.I.L.A. Group Net Profit	12,789	2,7%	25,178	4,7%	(12,389)	-49,2%

Attachment 2 - F.I.L.A. Group Adjusted and net of the IFRS 16 effects Consolidated Income Statement

	September	% core business	September % core business	Change
NORMALIZED - Euro millions	2020	revenue	2019	revenue	2020 - 2019
Revenue	471,347	100%	535,858	100%	(64,511)	-12,0%
Other Revenue	6,198		5,430		0,768	14,1%
Total Revenue	477,545		541,287		(63,742)	-11,8%
Total operating costs	(399,483)	-84,8%	(453,131)	-84,6%	53,648	11,8%
EBITDA	78,062	16,6%	88,156	16,5%	(10,094)	-11,5%
Amortisation, depreciation and write-downs	(24,874)	-5,3%	(22,889)	-4,3%	(1,985)	-8,7%
EBIT	53,188	11,3%	65,267	12,2%	(12,079)	-18,5%
Net financial charges	(23,081)	-4,9%	(16,716)	-3,1%	(6,365)	-38,1%
Pre-Tax Profit	30,106	6,4%	48,551	9,1%	(18,445)	-38,0%
Total income taxes	(8,469)	-1,8%	(14,115)	-2,6%	5,646	40,0%
Net profit - Continuing Operations	21,637	4,6%	34,436	6,4%	(12,799)	-37,2%
Net Profit for the period	21,637	4,6%	34,436	6,4%	(12,799)	-37,2%
Non-controlling interest profit	0,179	0,0%	1,383	0,3%	(1,204)	-87,1%
F.I.L.A. Group Net Profit	21,458	4,6%	33,053	6,2%	(11,595)	-35,1%

Attachment 3 - F.I.L.A. Group Consolidated Statement of Financial Position

	September	December	Change
Euro millions	2020	2019	2020 - 2019
Intangible Assets	449,564	430,609	18,955
Property, plant & equipment	175,189	186,013	(10,824)
Financial assets	3,479	3,690	(0,211)

Net Fixed Assets	628,231	620,313	7,918
Other non Current Asset/Liabilities	19,398	18,347	1,051
Inventories	271,174	258,409	12,765
Trade and Other Receivables	174,801	141,339	33,462
Trade and Other Payables	(104,235)	(108,670)	4,435
Other Current Assets and Liabilities	1,330	3,800	(2,470)
Net Working Capital	342,980	294,880	48,100
Provisions	(80,136)	(78,039)	(2,097)
Net Capital Employed	910,473	855,501	54,972
Equity	(341,486)	(357,351)	15,865
Net Financial Position	(568,986)	(498,150)	(70,836)
Net Funding Sources	(910,473)	(855,501)	(54,972)

Attachment 4 - F.I.L.A. Group Consolidated Statement of Cash Flows

	September	September	Change
Euro millions	2020	2019	2020 - 2019
EBIT	43,718	57,749	(14,031)
Adjustments for non-cash items	25,583	25,270	0,313
Integrations for income taxes	(5,488)	(8,605)	3,117
Cash Flow from Operating Activities Before Changes in NWC	63,813	74,413	(10,600)
Change NWC	(73,839)	(61,991)	(11,848)
Change in Inventories	(24,594)	3,068	(27,662)
Change in Trade and Other Receivables	(48,770)	(53,465)	4,695
Change in Trade and Other Payables	1,334	(8,256)	9,590
Change in Other Current Assets/Liabilities	(1,809)	(3,339)	1,530
Cash Flow from Operating Activities	(10,025)	12,422	(22,447)
Investments in tangible and intangible assets	(7,501)	(14,069)	6,568
Interest Income	0,564	0,080	0,484
Cash Flow from Investing Activities	(6,937)	(13,988)	7,051
Change in Equity	(0,280)	(4,257)	3,977
Financial expenses	(16,546)	(17,735)	1,189
Cash Flow from Financing Activities	(16,826)	(21,993)	5,167
Exchange rate effect and other changes IFRS 16 effect included	(2,398)	(3,442)	0,127
Net cash flow from IFRS 16	5,238	5,234	0,311
Total Net Cash Flow	(30,948)	(21,767)	(9,181)
Effect of exchange losses	17,622	(14,642)	32,264
Mark to Market Hedging	(7,598)	(13,602)	6,004
Variation for IFRS 16 adoption	(6,313)	(78,206)	71,893
Effect of M&A Operation	(43,600)	(2,784)	(40,816)
Change in Net Financial Position	(70,836)	(131,001)	60,165