Fine Foods & Pharmaceuticals N T M S p A : THE BOARD OF DIRECTORS APPROVES THE 30 JUNE 2020 HALF-YEAR FINANCIAL REPORT

THE BOARD OF DIRECTORS APPROVES THE 30 JUNE

2020 HALF-YEAR FINANCIAL REPORT

€ 75 million revenues

due to postponing some orders in the portfolio to the second half of the

year because of COVID 19

Adj Ebitda Margin at 13%

in line with the historical trend of recent years

€ 3.6 million Adj Net profit

despite the slight downturn, the result was very positive

Q3-20 Revenues at +22%

compared to the same period in 2019

Verdellino, 29 September 2020

The Board of Directors of Fine Foods & Pharmaceuticals N.T.M. S.p.A. Board of Directors approves the 30 June 2020 Half-year Financial Report.

***

ADJ summary results

Thousands of Euro		1st Half 2020	1st Half 2019	Difference	Difference in %
Revenues		75,350	83,141	(7,790)	(9%)
EBITDA	*	9,800	11,150	(1,350)	(12%)
EBITDA Margin	*	13%	13.4%
Net profit	*	3,637	4,210	(573)	(14%)

Thousands of Euro	30/06/2020	31/12/2019	Difference
Shareholders' equity	146,133	148,291	(2,157)
Net Financial Position	(34,868)	(39,778)	4,909

* The first half of 2020 does not include non-recurring charges totalling € 0.7 million. (€ 0.5 million net of the tax effect).

The first half of 2019 does not include non-recurring charges totalling € 1.4 million. (€ 1 million net of the tax effect).

(1) Operating profit before amortisation and depreciation of intangible and tangible fixed assets and write-downs

(2) Ratio between EBITDA and revenues

(3) Liquid and financial assets net of payables to banks and medium/long-term loans

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

Registered office: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail]

Share Capital Euro 22,590,304 fully paid-up - VAT number EN 09320600969 - Companies Register and tax code 09320600969

• Revenues generated by the "Food" Business Unit: € 54.1 million (first half-year of 2019: €
• 1. million; -14%)
• Revenues generated by the "Pharma" Business Unit: € 21.2 million (first half-year of 2019: €
  20 million; + 6%)
• EBITDA* Margin: 13.0% (first half-year of 2019: 13.4%)
• The Net Financial Position maintained its financial solidity and was positive (net cash) by €
• 1. million against a value of € 39.8 million at 31 December 2019
• YTD Sales at the end of September are up compared to the same period of the previous year
• Historical annual revenues growth trend expected for 2020

The Board of Directors of Fine Foods & Pharmaceuticals N.T.M. S.p.A. - a company listed on AIM Italia and the leading independent Italian company in the Contract Development and Manufacturing Organisation (CDMO) of solid oral forms for the pharmaceutical and nutraceutical industries - today approved the 30 June 2020 Half-year Financial Report.

The Chief Executive Officer, Giorgio Ferraris, commented:

"Nothing better than the opening sentence of a famous book of Charles Dickens can describe the trend in the first half of 2020: "It was the best of times; it was the worst of times." The beginning of the year was particularly challenging since the plants are close to Bergamo and many employees live in Val Seriana, in the epicentre of the worst pandemic in decades. Despite this, the company reacted brilliantly to overcome the crisis, and now we can look positively to the year-end. Fine Foods confirmed the commitment to employees' safety by implementing measures to contain COVID-19 as early as the second half of February, regardless of cost. Once again employees' reliability, willingness and spirit of belonging made the difference. Activities were slowed, and many orders were moved to the second half of the year with the consequence, of a decrease in revenues compared to the first half of 2019. However, the efficiency measures implemented in the new plants towards the end of 2019 allowed us to contain the loss of margins caused by COVID-related inefficiencies, including a high incidence of indirect personnel on the lower turnover. Despite the difficulties of the first half of the year, the considerable growth in turnover in the third quarter and strong expected sales in the fourth quarter give us hope for a positive year-end. For a cohesive group, I do not think there is a stronger emotion than victory in a difficult battle, so if our expectations are met, we will be able to hold our heads high and say: "It was the best of times"."

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

Registered office: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail]

Share Capital Euro 22,590,304 fully paid-up - VAT number EN 09320600969 - Companies Register and tax code 09320600969

30 June 2020 INCOME STATEMENT AND BALANCE SHEET DATA

The 30 June 2020 Interim Financial Statements have been prepared under Italian accounting standards.

ADJ Profit and loss figures

Thousands of Euro		1st Half 2020	1st Half 2019
Revenues		75,350	83,141
EBITDA	*	9,800	11,150
EBIT	*	3,245	5,692
Income before taxes	*	4,872	5,879
Net profit	*	3,637	4,210

*The first half of 2020 does not include non-recurring charges totalling € 0.7 million (€ 0.5 million net of the tax effect)

The first half of 2019 does not include non-recurring and charges totalling € 1.4 million (€ 1 million net of the tax effect)

1. Operating profit before amortisation and depreciation of intangible and tangible fixed assets and write-downs
2. Operating profit equal to the difference between production value and costs

Revenues for the first half of 2020 were approximately € 75 million with a reduction of 9% compared to € 83 million in the first half of 2019. This variation is due to a short-term turnover contraction in the nutraceutical sector, which saw part of its revenues be postponed to the second half of the year. The revenues of the "Food" Business Unit amounted to € 54.1 million in the first half of 2020 compared to € 63.1 million in the first half of 2019 and showed a decrease of 14 per cent. The "Pharma" segment sales in the first half of 2020 reached € 21.2 million with an increase of six per cent compared to € 20 million in the first half of 2019.

EBITDA* amounted to approximately € 9.8 million and recorded a decrease of more than € 1.3 million compared to the same period of the previous year. However, the percentage of revenues is in line with the historical trend of 13 per cent.

EBIT* amounted to approximately € 3.2 million. This was a decrease compared to the previous year due to the full rate depreciation of the investments for the expansion of the Zingonia-Verdellino and Brembate production sites, which became operational in 2019.

Earnings before taxes* slightly decreased compared to the first half of 2019 thanks to the financial management contribution.

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

Registered office: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail]

Share Capital Euro 22,590,304 fully paid-up - VAT number EN 09320600969 - Companies Register and tax code 09320600969

Net Profit* closed at € 3.7 million, showing a slight decrease compared to the first half of 2019.

Balance Sheet Data

	Thousands of Euro	30/06/2020	31/12/2019
	Fixed assets	93,435	92,782
	Net Working Capital	23,492	18,973
	Other receivables and payables	(4,740)	(2,270)
	Severance Indemnity	(921)	(973)
	Net Invested Capital	111,265	108,513
	Shareholders' equity	146,133	148,291
	Net Financial Position	(34,868)	(39,778)

Fixed Assets recorded an increase of about € 0.7 million compared to 31 December 2019. This item includes investments of about € 6.5 million, which included new plant and machinery purchases, and depreciation of about € 5.9 million.

The increase in Net Working Capital was due to the rise in the "Trade receivables" item, generated by the postponement of some collections in the first few days of July. This was primarily offset by the higher balance of the "Trade payables" item.

The Other Receivables and Payables item showed a negative balance of about € 2.5 million compared to 31 December 2019, due to the VAT credit decrease and the postponement of payment of current taxes during the first half of the 2020 financial year.

Shareholders' equity amounted to € 146.1 million, compared to € 148.3 million at the end of the previous year. The slight decrease is due to the treasury share buyback programme and the distribution of dividends approved by the 30 April 2020 Shareholders' Meeting.

The Net Financial Position was positive (net cash), by about € 34.9 million. The excellent cash generation deriving from operations fully supported the new investments made and the movement of working capital. The change from the previous financial year is due to the ongoing buy-back programme and the distribution of dividends.

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

Registered office: 24040 Zingonia-Verdellino (BG) via Berlino, 39 - tel. [phone] fax [phone] - www.finefoods.it - E-mail:[e-mail]

Share Capital Euro 22,590,304 fully paid-up - VAT number EN 09320600969 - Companies Register and tax code 09320600969