Fine Foods & Pharmaceuticals N T M S p A : THE BOARD APPROVED THE 30 SEPTEMBER 2021 INTERIM FINANCIAL REPORT

THE BOARD APPROVED THE 30 SEPTEMBER 2021

INTERIM FINANCIAL REPORT

FINE FOODS & PHARMACEUTICALS N.T.M. S.p.A. CLOSED

THE FIRST NINE MONTHS OF 2021:

REVENUES: €143.4 million (+17%)

ADJ EBITDA: €18.8 million (+15%)

ADJ EBIT: €9.2 million (+18%)

ADJ NET PROFIT: €10.5 million (+102%)

Verdellino, 12 November 2021

The Board of Directors of Fine Foods & Pharmaceuticals N.T.M. S.p.A. approved the Interim Financial Report as of 30 September 2021.

				***
			ADJ summary results
	Thousands of Euro		30/09/2021	30/09/2020	Difference	Difference in %
	Revenues		143,375	122,615	20,760	17%
	EBITDA	*	18,834	16,326	2,508	15%
	EBITDA Margin	*	13.1%	13.3%
	Net profit	**	10,462	5,181	5,281	102%
	Thousands of Euro		30/09/2021	31/12/2020	Difference
	Shareholders' equity		153,427	141,008	12,419
	Net Financial Position		(10,644)	(42,760)	32,117

• As of 30 September 2021, non-recurring charges totalling €852,000 were not included. As of 30 September 2020, non-recurring charges totalling €932,000 were not included.
• As of 30 September 2021, non-recurring financial charges totalling €12.7 million (with no tax effect),

related to the change in the fair value of the warrants fully settled as of 30 June 2021, and non-recurring charges totalling €852,000 (€614,000 net of the related tax effect) were not included.

As of 30 September 2020 non-recurring financial income totalling €3.7 million (with no tax effect)

and non-recurring charges totalling €932,000 (€672,000 net of the related tax effect) were not included.

1. Operating profit before depreciation, amortisation and impairment losses.
2. Ratio between EBITDA and revenues
3. Cash and cash equivalents and financial assets net of financial liabilities

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Sede legale: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail] Cap. Soc. € 22.770.445,02 i.v. - P.IVA IT 09320600969 - Registro Imprese e Cod.Fisc. 09320600969

• Revenues generated by the "Food" Business Unit: €106.4 million
• Revenues generated by the "Pharma" Business Unit: €28.2 million
• Revenues generate by the "Pharmatek" Business Unit: €8.8 million
• EBITDA* Margin: 13.1% (First nine months of 2020: 13.3%)
• The Net Financial Position was positive (net cash) with about € 10.6 million

The Board of Directors approved today the Interim Financial Report as of 30 September 2021.

The Board of Directors Chairman Marco Francesco Eigenmann, said:

"We are particularly pleased with our results for these nine months. Fine Foods reported a 17 per cent increase in revenues, adding the result of Pharmatek PMC, acquired last January, to an organic growth of 10 per cent, which was in line with our historical performance. Despite the continuing pandemic problems, the supply chain crisis and the unforeseen increase in energy costs, we look to the future with optimism, encouraged by the new opportunities and synergies that will arise from the newly acquired Euro Cosmetic."

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Sede legale: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail] Cap. Soc. € 22.770.445,02 i.v. - P.IVA IT 09320600969 - Registro Imprese e Cod.Fisc. 09320600969

30 SEPTEMBER 2021 INCOME STATEMENT AND BALANCE SHEET DATA

The Interim Financial Report as of 30 September 2021 is prepared under IAS/IFRS Accounting Standards, issued by the IASB (International Accounting Standards Board) and is not subject to audit. The consolidated financial statements include the results for the first nine months of the 2021 financial year for the newly acquired Pharmatek. Pharmatek is an unlisted company based in Cremosano (CR) specialising in the production of cosmetics, medical surgical aids and medical devices.

The manager responsible for preparing the company's financial reports - Pietro Bassani - declared, under Article 154-ter, paragraph 2, of Legislative Decree no. 58 of 24 February 1998, that the accounting information contained in the press release corresponds to the documented results, books and accounting records.

Thousands of Euro		30/09/2021 30/09/2020
Revenues		143,375	122,615
EBITDA	*	18,834	16,326
EBIT	*	9,193	7,791
Income before taxes	**	11,414	7,925
Net profit	**	10,462	5,181

• As of 30 September 2021, non-recurring charges totalling €852,000 were not included. As of 30 September 2020, non-recurring charges totalling €932,000 were not included.
• As of 30 September 2021, non-recurring financial charges totalling €12.7 million (with no tax effect),

related to the change in the fair value of the warrants fully settled as of 30 June 2021, and non-recurring charges totalling €852,000 (€614,000 net of the related tax effect) were not included.

As of 30 September 2020 non-recurring financial income totalling €3.7 million (with no tax effect)

and non-recurring charges totalling €932,000 (€672,000 net of the related tax effect) were not included.

1. Operating profit before depreciation, amortisation and impairment losses.
2. Operating profit

ADJ Profit and loss figures

Revenues for the first nine months of 2021 were approximately €143.4 million with an increase of 17% compared to €122.6 million in the first nine months of 2020. Revenues generated by the newly acquired Pharmatek amounted to €8.8 million, consequently the Group's growth is mostly organic and attributable to the excellent performance of the parent company Fine Foods (turnover +10% compared to the previous period).

EBITDA* amounted to €18.8 million and recorded an increase of €2.5 million compared to the previous period, keeping its percentage on revenues substantially consistent (from 13.3% to 13.1%).

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Sede legale: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail] Cap. Soc. € 22.770.445,02 i.v. - P.IVA IT 09320600969 - Registro Imprese e Cod.Fisc. 09320600969

EBIT* amounted to approximately €9.2 million, with an increase compared to the first nine months of 2020, when it was €7.8 million; the EBIT margin was in line with 30 September 2020 - 6.4%.

Income before taxes** reached €11.4 million as of 30 September 2021 compared to €7.9 million in the previous period and Net Profit** reached €10.5 million compared to €5.2 million as of 30 September 2020.

Balance Sheet Data

	Thousands of Euro	30/09/2021	31/12/2020
	Fixed assets	110,801	95,280
	Net Trade Working Capital	30,224	9,585
	Other receivables and payables	3,125	(5,555)
	Employee benefits	(1,366)	(1,063)
	Net Invested Capital	142,784	98,248
	Shareholders' equity	153,427	141,008
	Net Financial Position	(10,644)	(42,760)

Fixed assets increased by approximately €15.5 million compared to 31 December 2020; this increase is mainly attributable to the goodwill generated by the acquisition of Pharmatek (€12.6 million) which was recorded in the consolidated financial statements. The increase was also due to the rights of use and other intangible assets contributed by the newly acquired company (€3.8 million as of 30 September 2021).

Net Trade Working Capital as of 30 September 2021 was €30.2 million compared to €9.6 million at the end of the previous year. This is mainly due to higher trade receivables, which are structurally higher in the interim reports (increase of €12.7 million, of which €3.3 million contributed by Pharmatek) and higher Inventories for raw materials procurement (increase of €8.3 million, of which €1.4 million contributed by the Pharmatek subsidiary). Trade payables recorded an increase, which partially offset the growth in the above-mentioned assets (increase of €0.3).

Other Receivables and Payables showed a positive balance of approximately €3.1 million as of 30 September 2021 compared to the negative balance at the end of the previous year (negative balance of €5.6 million). This was mainly due to an increase in Other non-financial assets, including the VAT Receivable and a reduction in Other financial liabilities, including the IRES liability, which was unallocated by the Parent Company as of 30 September 2021 due to a negative pre-tax result.

Shareholders' equity confirmed the company solidity with an increase of approximately €12.4 million compared to the previous year-end despite the purchase of treasury shares for €6.2 million and the

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Sede legale: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail] Cap. Soc. € 22.770.445,02 i.v. - P.IVA IT 09320600969 - Registro Imprese e Cod.Fisc. 09320600969

distribution of dividends of €3.2 million. The increase in Equity is mainly generated by the conversion of listed and unlisted warrants.

The Net Financial Position stood at a positive value (net cash) of approximately €10.6 million, down from the previous year mainly due to the acquisition of Pharmatek, which had an impact of €17.2 million on the Group's NFP.

SIGNIFICANT EVENTS AFTER THE PERIOD-END

On 08 October 2021 Fine Foods & Pharmaceuticals N.T.M. S.p.A. acquired a controlling stake in Euro Cosmestic S.p.A., taking over approximately 72.9% of the share capital, worth €26,815,961. The Company obtained a credit line from Intesa San Paolo S.p.A. for short-term financing, valid until 31 March 2022, for €27 million. In the coming months, the above credit line will be converted into a structured medium-term loan. Euro Cosmetic shares are listed on Euronext Growth Milan, organised and managed by Borsa Italiana S.p.A. As a result, the Fine Foods' obligation to launch a takeover bid for the remaining 1,286,800 shares of Euro Cosmetic was met. The bid consideration will be €8.6 per ordinary share.

On 11 November 2021 Fine Foods & Pharmaceuticals N.T.M. S.p.A. acquired a plot of land located in the municipalities of Brembate (BG) and Filago (BG) with a registered surface area of approximately 100,000 sqm for approximately €3 million.

BUSINESS OUTLOOK

Fine Foods' revenues as of 30 September 2021 were up compared to the corresponding period in 2020 at Group level and on a like-for-like basis. In spite of the difficulties caused by the SARS-CoV-2 virus outbreak and the consequent social and health situation, and the worldwide problems linked to the procurement of raw materials and the sharp increases in energy costs - the effects of which will impact the last months of 2021 and the 2022 financial year -, the Board of Directors believes that, for the 2021 financial year and future financial years, revenue growth, at Group level, can remain in line with the historical trend and accompanied by a progressive improvement in expected margins.

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Sede legale: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail] Cap. Soc. € 22.770.445,02 i.v. - P.IVA IT 09320600969 - Registro Imprese e Cod.Fisc. 09320600969