F I L A Fabbrica Italiana Lapis ed Affini S p A : .I.L.A. S.p.A. Interim inancial Report at September 30 2022

Interim Financial Report

September 30, 2022

F.I.L.A. GROUP

INTERIM FINANCIAL REPORT

AT SEPTEMBER 30, 2022

F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A.

Via XXV Aprile 5 Pero (MI)

Interim Financial Report
September 30, 2022
CONTENTS
I - Interim Directors' Report ..........................................................................................................................	3
Corporate Bodies ...........................................................................................................................................	3
Overview of the F.I.L.A. Group ....................................................................................................................	4
Key events in the period ................................................................................................................................	6
Key Financial Highlights...............................................................................................................................	9
F.I.L.A. Group's Financial Highlights ........................................................................................................	13
Adjusted financial performance...............................................................................................................	13
Business seasonality ................................................................................................................................	15
Statement of Financial Position ...............................................................................................................	16
Financial overview ..................................................................................................................................	19
Segment reporting .......................................................................................................................................	22
Business Segments - Statement of financial position .............................................................................	23
Business Segments - Income Statement .................................................................................................	24
Business Segments - Other Information .................................................................................................	25
Subsequent events .......................................................................................................................................	26
Outlook ........................................................................................................................................................	26
Treasury shares ............................................................................................................................................	26
Accounting policies .....................................................................................................................................	27
II - Consolidated Financial Statements of the F.I.L.A. Group at September 30, 2022 ...........................	28
Consolidated Financial Statements..............................................................................................................	28
Statement of Financial Position ...............................................................................................................	28
Statement of Comprehensive Income ......................................................................................................	29
Statement of changes in Equity ...............................................................................................................	30
Consolidated Statement of Cash Flows ...................................................................................................	31
Attachments .................................................................................................................................................	33
Attachment 1 - List of companies included in the consolidation scope and other equity investments .......	33
Attachment 2 - Business combinations .......................................................................................................	34
Transactions relating to Atypical and/or Unusual Operations.....................................................................	36
Statement of the Manager in Charge - Interim Financial Report ................................................................	37

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Interim Financial Report

September 30, 2022

DIRECTORS' REPORT

AT SEPTEMBER 30, 2022

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Interim Financial Report

September 30, 2022

I - Interim Directors' Report

Corporate Bodies

Board of Directors
Chairperson (*)	Giovanni Gorno Tempini
Honorary Chairperson	Alberto Candela
Chief Executive Officer (**)	Massimo Candela
Executive Director (**)	Luca Pelosin
Non-executive Director	Annalisa Matilde Barbera
Non-executive Director (*)	Giorgina Gallo
Non-executive Director (*)	Carlo Paris
Non-executive Director (*)	Donatella Sciuto

1. Independent director in accordance with Article 148 of the Consolidated Finance Act and Article 3 of the Code of Conduct. (**) Executive Director

Control, Risks and Related Parties Committee

Donatella Sciuto

Annalisa Matilde Barbera

Carlo Paris

Remuneration Committee

	Carlo Paris
	Annalisa Matilde Barbera
	Giorgina Gallo
Board of Statutory Auditors
Chairperson	Gianfranco Consorti
Standing Auditor	Sonia Ferrero
Standing Auditor	Pietro Michele Villa
Alternate Auditor	Stefano Amoroso
Independent Auditors	KPMG S.p.A.

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Interim Financial Report

September 30, 2022

Overview of the F.I.L.A. Group

The F.I.L.A. Group operates in the creativity tools market, producing and marketing colouring, design, modelling, writing and painting objects, such as pencils, crayons, modelling clay, chalk, oil colours, acrylics, watercolours, paints and paper for the fine arts, school and leisure.

The F.I.L.A. Group at September 30, 2022 operates through 22 production facilities and 35 subsidiaries across the globe and employs approx. 10,900 people, becoming a pinnacle for creative solutions in many countries with brands such as GIOTTO, DAS, LYRA, Canson, Maimeri, Daler-Rowney Lukas, Ticonderoga, Pacon, Strathmore, Princeton and Arches.

Founded in Florence in 1920 by two noble Tuscan families, della Gherardesca and Marchesi Antinori, F.I.L.A. S.p.A. (hereafter also the "Parent") has achieved strong international growth in the past 20 years, supported by a series of strategic acquisitions. Over the years, the Parent has acquired: (i) the Italian firm Adica Pongo in 1994, a leading producer of modelling clay for children; (ii) the Spanish firm Spanish Fila Hispania S.L. (formerly Papeleria Mediterranea S.L.) in 1997, the Group's former exclusive distributor in Spain; (iii) the French firm Omyacolor S.A. in 2000, a leading manufacturer of modelling putties and clays; (iv) the U.S. Dixon Ticonderoga Group in 2005, a leading producer and distributor of pencils in North America, with subsidiaries operating on the Canadian, Mexican, Chinese and European markets; (v) the German LYRA Group in 2008, which allowed the Group to enter the German, Scandinavian and Eastern Asian markets; (vi) the business unit operated by Lapiceria Mexicana in 2010, one of the main local competitors in the budget coloured and graphite pencils market; and (vii) the business unit operated by Maimeri S.p.A. in 2014, a manufacturer and distributor of paints and accessories for fine arts. In addition to these operations, on the conclusion of an initiative which began with the acquisition of a significant influence in 2011, control of the Indian company DOMS Industries Pvt Ltd. was acquired in 2015 (viii). In 2016, the F.I.L.A. Group focused upon development through strategic Art&Craft sector acquisitions, seeking to become the leading market player. On February 3, 2016, F.I.L.A. S.p.A. acquired control of the Daler-Rowney Lukas Group, an illustrious brand producing and distributing materials and accessories on the arts and crafts market since 1783, with a direct presence in the United Kingdom, the Dominican Republic, Germany and the USA (ix). In September 2016, the F.I.L.A. Group acquired the entire share capital of St. Cuthberts Holding Limited and the operating company St. Cuthberts Mill Limited, a highly-renowned English paper mill, founded in 1907, located in the south-west of England and involved in the production of high quality artist's papers (x). In October 2016, F.I.L.A. S.p.A. acquired the Canson Group, founded in 1557 by the Montgolfier family, with headquarters in Annonay in France, production facilities in France and conversion and distribution centres in Italy, France, China, Australia and Brazil. Canson products are available in over 120 countries and the brand is the most respected globally involved in the production and distribution of high added value paper for the fine arts, design, leisure and schools, but also for artists' editions and technical and digital drawing materials (xi).

In June 2018, F.I.L.A. S.p.A., through its US subsidiary Dixon Ticonderoga Co. (U.S.A.), consolidated its role 4