Medica S p A : 30.03.2022 19.00 - Medica S.p.A. - Approval of the 2021 results

MEDICA S.p.A.

Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALYTel. [phone] Fax [phone] e-mail:[e-mail] page:www.medica.itInternational:

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Press release

MEDICA S.P.A.

APPROVAL OF THE FINANCIAL STATEMENTS AND THE CONSOLIDATED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

DESPITE THE PERSISTENCE OF THE PANDEMIC, THE GROUP REALIZED

GROWING RESULTS COMPARED TO 2020

SUMMARY DATA
Consolidated Net Revenues	Euro 43,8 million (-1%)
EBITDA1	Euro 9,9 million (+4%)
EBIT2	Euro 5,8 million (+4%)
Net Result	Euro 5,0 million (+29%)
NFP positive	Euro 10,8 million (negative of Euro 3,1 million as at 31 december 2020)

Medolla (MO), 30 march 2022 - The Board of Directors of Medica S.p.A., an integrated Italian biomedical and MedTech group with a strong international footprint, approved the financial statements and the consolidated financial statements as at 31 December 2021, with a consolidated net profit of Euro 5.0 million, a significant increase compared to the consolidated net profit realized in 2020, equal to Euro 3.8 million (+29%).

Commenting the Group's performance, the President Luciano Fecondini said: "I am very satisfied with the excellent results achieved in 2021; despite the difficulties encountered due to the persistence of the pandemic, with uncertainties in the delivery of materials from suppliers and a decline in the first half of the revenues of the Water Division, to which was added the stop of the plant of our main sterilization service provider, occurred mainly in the last period of the year, the 2021 ranks first as the highest Ebitda, Ebit and Net Result in the history of Medica, driven mainly by a strong acceleration in the Acute & Aferesis and Automation division; our DNA in development and innovation has allowed us to brilliantly face a complex year, characterized by the Covid emergency, also thanks to the contribution of our employees and collaborators and the stable relationships with our business partners, and has further strengthened our solid foundations for medium-long term growth".

• 1 the amount includes the effect from the costs occurred for the capital increase

• 2 the amount includes the effect from the costs occurred for the capital increase

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Capitale sociale € 4.223.250,00 i.v. - Registro Ditte/REA n° 229672 - Registro Imprese di Modena n° 01604300366 Iscrizione Registro Nazionale Produttori A.E.E. n. IT08020000003645

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MEDICA S.p.A.

Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALYTel. [phone] Fax [phone] e-mail:[e-mail] page:www.medica.itInternational:

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Operating performance

The result for the year is characterized by very diversified situations in the broad product portfolio of the group.

The sustained growth in sales of products (machines and filters) for apheresis on the German market and beyond continues; important growth in the product lines for kidney and liver transplantation and in the tubing sets supporting laser surgery of the eye.

In addition, we completed and then invoiced a major apheresis machine development project for a world-leading company in this business and obtained the CE mark. This project, being Medica contractually the manufacturer of the machines, will allow to benefit from a recurring revenue starting from 2022.The trend is also positive for other niche products with important margins such as plasma filters and plasma fractionators.

The strong increase in sales of electromedical equipment will also guarantee a growth in the sale of dedicated disposables in future years.

Regarding the Water Division, it should be noted that the hospital purification of water has been strongly affected by the pandemic that has removed part of the resources normally allocated to the microbiological purification of water.

This dynamic caused a decreasing in the business line, which began in the last months of 2020 and continued in the first half of 2021. However, during the second half of 2021 there were significant signs of recovery generating good expectations for 2022.

In general, there has been a global decreasing in the dialysis market, as the pandemic has particularly affected hemodialysis patients.

Medica has also been affected by this decline in volumes of dialysis filters and dialysis lines.

Economic performance

The item "Revenues from sales and services" of Euro 43.8 million in 2021, shows a decrease of Euro 0.3 million (1%) compared to 2020. The 2021 turnover trend was mainly characterized by a significant growth in the Acute & Aferesis business lines, which went from 7.1 million euros in 2020 to 9.2 million euros in 2021 (+31%), and Tecnoideal Automation which, also thanks to the contribution of the newly acquired THF Srl starting from 1 July 2021 for about 1.3 million euros, went from 8.8 million euros to 12.0 million euros (+37%). Growth was also recorded, even if more contained, in the Menfis division (up by Euro 0.1 million, +13%) and in the performing of services and other activities (up by Euro 0.8 million, +50%). On the other hand, the other business lines decreased (overall reduction of Euro 6.5 million, -26%); in particular, the Water Division, which went from 4.8 million euros in 2020 to 3.5 million euros in 2021 (-27%), saw important signs of recovery already from the second half of 2021 with a revenues of about 2.1 million euros, compared to that realized in the first half of 2021, equal to 1.4 million euros (+47%).

In addition, we report the growth in the revenues of electromedical equipment, which from Euro 4.1 million in 2020 reached Euro 4.6 million in 2021 (+0.5 Euro million, +12%).

UNI CEI EN ISO 9001:2015

Capitale sociale € 4.223.250,00 i.v. - Registro Ditte/REA n° 229672 - Registro Imprese di Modena n° 01604300366 Iscrizione Registro Nazionale Produttori A.E.E. n. IT08020000003645

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MEDICA S.p.A.

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The different mix of revenues achieved in 2021 compared to 2020, in favour of the business lines with higher margins, in addition to the contribution of THF Srl for Euro 0.2 million, contributed significantly to the growth of EBITDA 2021 compared to 2020

(+Euro 0.4 million, +4%) despite the strengthening of the Group's workforce in 2021 and the occurrence of some non-recurring consulting costs. The growth in EBITDA drove the growth in EBIT (+Euro 0.2 million, +4%). It should be noted that the EBITDA and EBIT amounts include non-capitalized costs related to the IPO (Euro 74 thousand) as well as the amortization of the capitalized portion (Euro 40 thousand).

The 2021 tax charge is significantly improved compared to 2020 both because of the super ACE deriving from the share capital increase that took place in 2021, which generated a tax benefit of Euro 180 thousand, and as a result of higher deferred taxes assets accounted for in 2021 compared to 2020, mainly on investment grants and provisions.

Financial performance

The significant improvement in the net financial position, which went from a net debt of Euro 3.1 million in 2020 to a net cash of Euro 10.8 million in 2021, is mainly due to the collection, net of listing costs, of the capital increase of Euro 17.2 million, the positive cash flow deriving from operations of Euro 4.3 million and the negative cash flow deriving from investments, equal to Euro 7.6 million (which includes Euro 2.3 million for the purchase of THF Srl net of the acquired active NFP and extraordinary investments for new buildings and machinery in the two subsidiaries Sar-med and Medica Mediterranèe, for Euro 3.4 million).

Net of cash in from the capital increase and cash out for extraordinary investments, operating free cash flow was positive at Euro 2.4 million.

Significant events in 2021

On April 28, 2021, the Company, through its subsidiary Tecnoideal Srl sole quote-holder, purchased 100% of the shares of THF Srl, based in Marzolara (PR) - Italy, for a contribution of 2,500 thousand euros. The company operates in the design and manufacture of special machines for radiofrequency or thermal pulse welding for plastic films, applied to various products including medical ones (typically blood bags or fluid bags to be sterilized). With this acquisition, declares president Fecondini Luciano, "we plan to expand our technological offer by adding the sector of welding machines for medical films and approach new industrial markets".

In July 2021 our notified body KIWA Cermet obtained European accreditation for the MDA (Medical Device Regulation), a fundamental step to allow the normal operation of Medica in the future regarding the registration of its medical products.

UNI CEI EN ISO 9001:2015

Capitale sociale € 4.223.250,00 i.v. - Registro Ditte/REA n° 229672 - Registro Imprese di Modena n° 01604300366 Iscrizione Registro Nazionale Produttori A.E.E. n. IT08020000003645

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MEDICA S.p.A.

Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALYTel. [phone] Fax [phone] e-mail:[e-mail] page:www.medica.itInternational:

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During the year, a total of 7 practices were approved, including important changes to existing medical devices and the introduction of new types of medical devices on our CE Certificate. This is a clear indicator of the potential for further development of the Group's revenues.

During the year, the following patents or territorial extensions were filed and/or issued:

• a. "Artificial diuresis device" (HomHemo or AD1 or STB) filed in 2021

• b. "Device and diagnostic system and related production method", is the so-called Electronic Catheter filed in 2021, co-ownership with a public university institution c. "Hemodialysis machine equipped with a system for measuring the flow rate of a liquid and its method of operation" filed in 2020 but released in 2021 d. "Blood filtration machine equipped with a measuring system including optical sensors" filed in 2020 and extended with worldwide coverage e. "Method for the treatment of a liquid" filed in 2020 and extended to Europe in 2021

On November 1, 2021, we received from Borsa Italiana S.p.A. the admission to listing of Medica's ordinary shares on Euronext Growth Milan. The placement price was set at Euro 27.00 per share. As a result of the placement, the share capital of Medica increased from 3,538,100 shares to 4,223,250 ordinary shares without nominal value, of which 20.07% free float.

Main subsequent events

Since the end of the financial year, relations between the nations of Russia and Ukraine have deteriorated to such an extent that they have resulted in armed conflict. At the time of writing this note, the conflict is limited to the two nations, but since most Western countries, including Italy, have taken decisions of an economic nature aimed at imposing sanctions on the Russian Federation, repercussions on the economy of our country cannot be excluded.

Although the Company does not have direct business relations in the two countries, the progressive economic deterioration resulting from the economic sanctions and the consequences of the conflict could have an indirect impact on the Company that at present it is not possible to quantify or predict how such repercussions may be reflected on the financial statements of the next financial year, depending substantially on the duration of the conflict, its geographical and temporal extension and the consequent duration of economic sanctions.

Outlook for the current year

The Group will continue to work to give rapid responses to the needs of the market and its customers even if the current conditions of procurement of raw materials (plastics, metals, electronic components) put a strain on the programming of the various productions.

UNI CEI EN ISO 9001:2015

Capitale sociale € 4.223.250,00 i.v. - Registro Ditte/REA n° 229672 - Registro Imprese di Modena n° 01604300366 Iscrizione Registro Nazionale Produttori A.E.E. n. IT08020000003645

UNI CEI EN ISO 13485:2016

Partita IVA e Codice Fiscale 01604300366 - Identification Number IT 01604300366

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MEDICA S.p.A.

Via Degli Artigiani, 7 41036 MEDOLLA MODENA - ITALYTel. [phone] Fax [phone] e-mail:[e-mail] page:www.medica.itInternational:

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Added to this is the generalized increase in prices that greatly complicates industrial relations with both suppliers and customers. The group has a still unexpressed growth potential, but it is difficult in this context to estimate the results for 2022. On the one hand, the order books acquired to date and the market trends of our main products should lead us to achieve results for 2022 that improve compared to the 2021 financial year, on the other hand, the protracted pandemic, geopolitical and military tensions, and difficulties in finding raw materials can lead to negative deviations.

Results of the parent company Medica SpA

The parent company Medica SpA realized a turnover of Euro 34.4 million with a net profit of approximately Euro 2.0 million.

The Board of Directors will propose to the Shareholders' Meeting to allocate the net profit, equal to Euro 2,024,292 as follows:

- Euro 101,215 as a legal reserve

- Euro 1,923,077 as a statutory reserve.

Calling of the Medica SpA shareholders' meeting

The Board of Directors has resolved to call for 29 April 2022:

• • the Ordinary Shareholders' Meeting to approve the financial statements for the year ended 31 December 2021, the presentation of the consolidated financial statements, the allocation of profit for the year and the appointment of the Board of Statutory Auditors;

The documentation relating to the items on the agenda will be made available to the public at the registered office, on the websitewww.medica.itand on the website of Borsa Italiana, within the terms provided for by current legislation.

This Press Release is available on the Company's websitewww.medica.itin the Investors section. On March 31, 2022 at 11.00 am, the management will illustrate in audio-conference the results achieved by the Medical Group in 2021. Below are the phone numbers to connect to the audio conference:

Italy: [phone]

France: [phone] Germany: [phone] Switzerland: [phone]

UK: [phone]

USA: [phone]

UNI CEI EN ISO 9001:2015

Capitale sociale € 4.223.250,00 i.v. - Registro Ditte/REA n° 229672 - Registro Imprese di Modena n° 01604300366 Iscrizione Registro Nazionale Produttori A.E.E. n. IT08020000003645

UNI CEI EN ISO 13485:2016

Partita IVA e Codice Fiscale 01604300366 - Identification Number IT 01604300366

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