GVS S p A : approves consolidated results as at 31 March 2021

PRESS RELEASE

GVS APPROVES CONSOLIDATED RESULTS AS AT 31 MARCH 2021

REVENUES UP 71% AND STRONG GROWTH IN GROUP PROFITABILITY

Key performance indicators of the GVS Group for the first three months of 2021 compared to the same period of 2020:

• Revenues of €103 million, up 71% from €60.2 million;
• Normalised EBITDA1 of €42.9 million (+126.6%) compared to €18.9 million, with a margin on revenues of 41.7%. EBITDA amounted to €43.1 million (+146.6%) compared to €17.5 million, with an EBITDA margin of 41.9%;
• Normalised EBIT2 of EUR 38.8 million (+150%) compared to EUR 15.5 million. EBIT amounted to €38.1 million (+191%) compared to €13.1 million, with an EBIT margin of 36.9%;
• Normalised Net Profit3 amounted to EUR 32 million (+201.7%) compared to EUR 10.6 million.
  Net profit of €31.4 million (+261.8%) compared to €8.7 million;
• Positive Net Financial Position of EUR 54.8 million compared to positive position of EUR 31.6 million at 31 December 2020.

Zola Predosa (BO), 10 May 2021 - The Board of Directors of GVS S.p.A., a leading supplier of advanced filtration solutions for highly critical applications, met today in Zola Predosa (BO) and approved the consolidated results as at 31 March 2021 prepared in accordance with IFRS.

"The results achieved in the first quarter of 2021 are a further demonstration of the quality of the work carried out in the last period to prepare us for a phase of new normality," commented Massimo Scagliarini, CEO of GVS. "We are committed to seizing opportunities related to market changes and have increased our production capacity to prepare for the expected acceleration in the HealthCare Liquid sub-division in view of regular hospital activities recovery. The coming months will still be influenced by the context we are experiencing, but our team has shown that it is capable of handling such changes and complexities. We will continue to strive for an overall strengthening of our achievements and the extraordinary growth recorded in 2020 and the first 3 months of 2021, by keeping our focus on market opportunities and our ability to respond promptly to the demands of consumers and our clients, and by devoting increasing attention to ESG issues. As always, our aim is

1 It indicates the result for the period adjusted for operating income and expenses which, due to their nature, are reasonably expected not to recur in future periods; for the year 2020 these are mainly related to IPO-related expenses, while for 2021 related to the sale of the Chinese plant in Suzhou and the relocation of the same production site in addition to expenses related to the IPO

2 It indicates the net profit for the period adjusted for operating income and expenses which, due to their nature, are reasonably expected not to recur in future periods; for the year 2020 these are mainly related to IPO-related expenses and amortisation of intangible assets recognised under PPA, while for 2021 related to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses related to the IPO and the amortization of intangible assets recorded in the PPA

3 It indicates the net profit for the period adjusted for operating income and expenses which, due to their nature, are reasonably expected not to recur in future periods; for the year 2020 these are mainly related to IPO-related expenses and amortisation of intangible assets recognised under PPA, both net of related tax effects, while for 2021 related to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses related to the IPO and the amortization of intangible assets recorded in the PPA, net of the related tax effects

to look ahead and anticipate trends in order to be ready to compete successfully in the marketplace now and in future."

ANALYSIS OF THE GROUP'S ECONOMIC MANAGEMENT

As of 31 March 2021, GVS achieved consolidated revenues of 103 million euros, up 71% from 60.2 million euros recorded in the same period of 2020.

The sharp increase in sales is attributable to the growth of the Healthcare & Life Sciences division, due not only to the continued growth of the "Healthcare Air & Gas" business, but also to the resumption of a sustained growth trend in the "Laboratory" business and the "Healthcare Liquid" business which, in addition to absorbing the effects of the acquisitions realised in 2020, recorded a recovery in the businesses that during the past year had had growth below their historical trend due to related delays linked to the effects of the pandemic, businesses regarding traditional health treatments.

The Health & Safety division also continued the significant sales trend linked to the growth of the "Personal Safety" business in Q1 2021, while the Energy & Mobility division is substantially in line with the values of the first quarter of 2020, thus continuing the return for the period to a level of orders prior to the pandemic.

In terms of performance and breakdown of revenues from contracts with customers as of 31 March 2021:

• the Healthcare & Life Sciences division, which accounts for 43.6% of the total, grew by around 59% compared to the same period in 2020;
• the Energy & Mobility division, which accounts for 19% of the total, declined by around 3.3% compared to the same period in 2020;
• the Health & Safety division has reached 37.4% of the total, recording an increase of 227.4% compared to the same period in 2020.

Normalised EBITDA1 is at €42.9 million (+126.6%) compared to 31 March 2020, when it was €18.9 million, with a margin on revenues of 41.7% compared to 31.5% in the first three months of 2020. This increase sustains the level of profitability achieved in the second half of 2020, even in the face of a partial change in the sales mix and the positive absorption of the turbulence scenario for procurement policies linked to the scarcity of certain raw materials. EBITDA amounted to EUR 43.1 million (+146.6%) compared to EUR 17.5 million, with an EBITDA margin of 41.9%.

Normalised EBIT2 was EUR 38.8 million (+150%) compared to the same period last year when it was EUR 15.5 million. EBIT amounted to EUR 38.1 million (+191%) compared to EUR 13.1 million, with an EBIT margin of 36.9%.

The Normalised Net Profit3 was €32 million, up from €10.6 million in the first three months of 2020. Net profit amounted to €31.4 million (+261.8%) compared to €8.7 million in the same period of 2020.

The Net Financial Position at 31 March 2021 was positive at EUR 54.8 million, compared to EUR 31.6 million at 31 December 2020. This result is attributable to cash generated by current operations net of investments made.

BUSINESS OUTLOOK

For the rest of 2021, the GVS Group will continue to strive for an organic consolidation of the results achieved to date, thanks to a rebalancing of the product portfolio mix that will enable it to consolidate the extraordinary growth occurring in 2020 and in the first quarter of 2021, keeping its focus high for timeliness in responding to market and client demands with an increasing sensitivity to active management of ESG issues. Downstream the positive closing of the first quarter of 2021 and based on the amount of revenues from contracts with existing customers and the order backlog acquired to date, GVS confirms year-end closing expectations, without considering the contribution of any new acquisitions, on a turnover level ranging between 345 - 370 million. The EBITDA margin achieved in the first quarter of 2021 is expected to move towards normalisation in the next quarters, with the overall result expected to be in the range of 32% to 35%. The above forecasts are related to orders already in the portfolio and contracts of the Healthcare & Life Sciences and Health & Safety divisions being negotiated, in a scenario of progressive normalization of the effects of the pandemic and the positive impact of the vaccination policies of different countries, while the orders forecasts for the whole of 2021 related to customers in the Energy & Mobility sector are estimated to gradually recover with respect to pre-pandemic levels. As a result, the expected level of revenues is supported by all the divisions of the Healthcare & Life Sciences, Health & Safety and Energy & Mobility Group. GVS also confirms its commitment to constant market monitoring in order to find and take advantage of M&A opportunities in order to contribute to a new acceleration in the Group's growth trends. Due to the randomness connected to the occurrence of any future event, it cannot be excluded that there may be deviations, even significant ones, from final values and the values mentioned above.

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DECLARATION PURSUANT TO ART. 154-BIS, PARAGRAPH 2, OF THE T.U.F.

The Manager responsible for the preparation of the Company's financial reports, Emanuele Stanco, hereby declares, pursuant to the second paragraph of Article 154 bis of Legislative Decree 58/98, that the accounting information contained in this press release corresponds to the results of accounting documents, journals and entries.

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CONFERENCE CALL

Financial results for the first three months of 2021 will be presented on Monday 10 May at 4:30 pm CET during a conference call of the Group's top management.

The conference call can be heard in webcast by connecting through the following URL https://87399.choruscall.eu/links/gvs210510.html

As an alternative to the webcast, you can take part in the conference call by calling one of the following numbers:

ITALY: [phone]

UK: + 44 121 281 8003

USA: [phone]

The presentation by top management will be available before the beginning of the conference call on the authorised storage mechanism eMarket SDIR, managed by Spafid S.p.A., as well as on the Company's website www.gvs.com (in the section Investor/Financial Documents/Presentations).

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The Consolidated Interim Financial Statements as at 31 March 2021 will be made available to the public at the Company's registered office and at the Italian Stock Exchange, as well as on the website www.gvs.com "Investor/Financial Documents/Financial Statements and Reports" within the terms of law.

This press release is available on the regulated information dissemination system eMarket SDIR, managed by Spafid S.p.A., as well as on the Company's website www.gvs.com (in the Investor/Press releases section).

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GVS GROUP:

The GVS Group is one of the world's leading suppliers of filter solutions for applications in the Healthcare & Life Sciences, Energy & Mobility and Health & Safety industries. In addition to its corporate headquarters in Bologna, GVS currently has 14 factories in Italy, the United Kingdom, Brazil, the United States, China, Mexico, Romania and Puerto Rico and 18 sales offices worldwide. In the financial year ended 31 December 2020, the GVS Group recorded revenues from contracts with clients of 363 million euros and a Normalised EBITDA of 144 million euros.

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Contact information

Investor Relations GVS S.p.A. - Mario Saccone - [e-mail]

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Consolidated income statement

	(In thousands of Euro)			Quarter ended March 31,
			2021			2020
	Revenue from contracts with customers	103.026		60.243
	Other income		2.438		317
	Total revenue			105.463			60.560
	Raw materials, work in progress and finished goods		(23.626)		(16.782)
	Personnel expenses		(27.609)		(18.693)
	Cost of services		(9.264)		(6.956)
	Other operating costs		(1.822)		(634)
	EBITDA			43.143			17.495
	Net impairment losses on financial assets		(56)		(62)
	Depreciation, amortization and impairment losses		(5.021)		(4.357)
	EBIT			38.066			13.076
	Finance income		3.934		52
	Finance costs		(524)		(1.605)
	Profit before income tax			41.476			11.523
	Income tax expense		(10.081)		(2.845)
	Net profit			31.395			8.678
	Of which GVS Group		31.394			8.676
	Of which non controlling interests			1			2
	Net result per share			0,18			0,26
	Diluited Net result per share			0,18			0,26