11.11.2020 20:30 - The BoD of Piovan SpA approves the Periodic Financial Information as of September 30, 2020

Press Release

THE BOARD OF DIRECTORS OF PIOVAN S.P.A. APPROVES THE PERIODIC FINANCIAL INFORMATION AS OF

SEPTEMBER 30, 2020

• Consolidated revenue of € 152.3 million, contracting 9.5% from € 168.2 million on September 30, 2019 (-7.4% at like-for-like exchange rates);
• EBITDA of € 20.0 million (13.2% margin), increasing 3.3% from € 19.4 million on September 30, 2019;
• Consolidated Operating Profit (EBIT) of € 15.9 million (10.5% margin), + 0.9% compared to € 15.8 million on September 30, 2019;
• Consolidated Net Profit of € 10.5 million (6.9% margin), compared to € 11.7 million on September 30, 2019;
• Pre-IFRS16 Consolidated Net Financial Position of € 10.4 million, improving by € 16.3 million on September 30, 2019;

Santa Maria di Sala (Venice), November 11, 2020 - The Board of Directors of Piovan S.p.A. ("Piovan" or the "Company") today reviewed and approved the Periodic Financial Information as of September 30, 2020.

"In an uncertain market environment due to the scenarios determined by the Covid 19 pandemic, we continue to record a good stability in volumes with an increase in margins, both in percentage and in absolute value. These figures, combined with the important acquisition of Doteco, make us think of a positive year-end and a 2021 recovery. Also in the third quarter the company continued the project of strengthening the equity and financial structure, a fundamental condition for any future aggregation processes." declares Nicola Piovan, Executive President.

The key financial highlights of the Periodic Financial Information as of September 30, 2020 follow:

				Nine months ended 30 September				Changes
	(amounts in €'000)
						% on total						% on total
				2020			revenues			2019			revenues			2020 vs 2019			%
						and other					and other
							income						income
	Revenue	149,421	98.1%	164,015		97.5%	(14,594)		(8.9%)
	Other revenue and income	2,849	1.9%	4,210		2.5%	(1,361)		(32.3%)
	TOTAL REVENUE AND OTHER INCOME	152,269	100.0%	168,225		100.0%	(15,955)		(9.5%)
	EBITDA	20,050	13.2%	19,416		11.5%	634		3.3%
OPERATING PROFIT	15,923	10.5%	15,780		9.4%	143		0.9%
PROFIT BEFORE TAXES	15,118	9.9%	16,280		9.7%	(1,162)		(7.1%)
Income taxes	4,625	3.0%	4,614		2.7%	11		0.2%
NET PROFIT	10,493	6.9%	11,665		6.9%	(1,172)		(10.0%)

There are no non-recurring amounts in the first nine months of 2020. The comparative figures at September 30, 2019 were stated at their total amounts. We highlight however that they included non-recurring revenues for a total of € 0.7 million and non-recurring costs for a total of € 0.8 million.

Revenue overview

Consolidated revenue (and other income)

In the first nine months of 2020 total revenues and other income of the Piovan Group amounted to € 152.3 million, down from € 168.2 million in the first nine months of 2019 (-9.5%).

In terms of revenue only, in the first nine months of 2020, Piovan Group revenue was € 149.4 million, reducing by 8.9% on € 164.0 million in the first nine months of 2019.

Revenue calculated on a like-for-like basis (i.e. at the first nine months of 2019 average exchange rate) would have been € 2.5 million higher at € 151.9 million and a decrease of approx. 7.4% on the first nine months of 2019. Revenue was in fact mainly impacted by a negative effect from Brazilian Real movements.

2020 third quarter revenue (€ 48.8 million) lightly decreased (-1.2%) if compared with 2020 second quarter (€ 49.4 million), but slightly above (+2.5%) if compared with 2019 third quarter (€ 47.6 million).

Revenue by Business Segment

	30.09.2020		30.09.2019	Change	% Change
Plastic	115,921		129,991	-14,070	-10.8%
Food & non plastic	13,469		12,539	930	7.4%
Services	20,031		21,485	-1,454	-6.8%
Revenue	149,421		164,015	-14,594	-8.9%

Revenue by market indicates:

• Plastic Systems revenue decreased compared to the same period of the previous year; this was substantially as a result of the mobility restrictions imposed to fight the COVID-19 outbreak, which, in particular during the second quarter 2020, reduced the possibility to perform installations and limited the collection of orders, with an impact on third quarter 2020 revenue.
• Food & non plastic system revenue are growing and increased if compared with the same period of previous year, thanks to a good backlog at the beginning of the year and to the order collection which increases on the basis of the increased customers and geographical areas operating in this business market.
• Services market shows lower revenue if compared with the same period of the last year. Again, in this case, the contraction is due to the mobility restrictions imposed during the second quarter to fight the pandemic outbreak, which did not allow for the normal provision of after-sales services to customers. Third quarter revenue are substantially positioned in line with expectations.

2

Revenue by region

	30.09.2020	30.09.2019	Change	% Change
EMEA	94,211	100,799	-6,588	-6.5%
ASIA	17,972	20,794	-2,822	-13.6%
NORTH AMERICA	29,643	34,056	-4,413	-13.0%
SOUTH AMERICA	7,595	8,366	-771	-9.2%
Revenue	149,421	164,015	-14,594	-8.90%

Asian revenues were impacted by COVID-19, which led to the closure for three weeks in the first quarter of the year (four weeks considering the holiday period for the Chinese New Year) of the facility in China.

EMEA revenues were impacted by the mobility restrictions imposed from the end of February, initially in Italy and thereafter in the rest of Europe, which slowed and imposed greater difficulties on the start-up of delivered systems and also the deliveries themselves.

North and South America region are also affected by a slowdown linked to the ongoing pandemic.

Consolidated operating and net results

EBITDA

EBITDA margin improved both in absolute term and as a percentage of total revenue, reaching € 20.0 million, increasing of 3.3% compared to € 19.4 million of the same period of 2019, with a percentage of total revenue moving from 11.5% in 2019 to 13.2% in 2020, benefiting from some optimization and cost containment measures undertaken during the year. In particular, with reference to the personnel costs, utilization of previous accrued holidays has been incentivized and with reference to the Italian subsidiaries only, from March on, they appealed to the lay-off scheme; foreign subsidiaries have adopted similar measures.

Operating Profit

Operating Profit was € 15.9 million, increasing 0.9% on € 15.8 million in the same period of the previous year, with a revenue and other income margin of 10.5% (9.4% in the same period of 2019).

Net Profit

Net profit was € 10.5 million, with a revenue and other income margin of 6.9%, down on € 11.7 million in the same period of the previous year.

3

	2020	2019
Net Profit attributable to:
- owners of the parent company	11,070	11,742
- Non-controlling interests	(577)	(76)
Earnings per share
- basic	0.22	0.23
- diluted	0.22	0.23

Earnings per share

Earnings per share were € 0.22 on September 30, 2020, compared to € 0.23 on September 30, 2019.

Consolidated Equity Overview

Consolidated Net Financial Position

The consolidated net financial position at September 30, 2020 (pre-IFRS 16 application) was a cash position of € 10.4 million, compared to € 6.9 million at December 31, 2019 and a debt position of € 5.9 million at September 30, 2019.

€/000	30.09.2020	31.12.2019	30.09.2019
A. Cash	17	15	19
B. Current accounts and post office deposits	62,148	59,108	38,193
C. Cash & cash equivalent (A+B)	62,165	59,123	38,212
D. Current financial assets	5,239	6,319	6,342
E. Current bank loans and borrowings	(23,011)	(25,026)	(23,008)
F. Current portion of non-current debt	(11,402)	(11,961)	(9,408)
G. Other current financial liabilities*	(160)	(189)	(220)
H. Current financial position (E+F+G)	(34,574)	(37,176)	(32,636)
I. Net current financial position (H+C+D)	32,830	28,267	11,918
J. Long term loans	(22,046)	(20,939)	(17,395)
K. Bond issued	-	-
L. Other non-current financial liabilities*	(378)	(404)	(436)
M. Non-current financial position (J+K+L)	(22,424)	(21,343)	(17,831)
N. Net financial position (I+M) before IFRS16	10,407	6,924	(5,913)
€/000	30.09.2020	31.12.2019	30.09.2019
IFRS16 - Lease - impact	(7,581)	(7,864)	(5,236)
Current portion	(1,643)	(1,537)	(1,042)
Non-current portion	(5,939)	(6,327)	(4,194)
N. Net financial position (N+IFRS 16 impact)	2,825	(940)	(11,149)

• The captions "Other current and non-current financial liabilities" in the table above do not include the effect related to the application of IFRS 16, which is indicate below.

4