13.05.2021 18:55 - The BoD of Piovan S.p.A. approves the periodic financial information as of 31.03.2021

Press Release

THE BOD OF PIOVAN S.P.A. APPROVES THE PERIODIC FINANCIAL INFORMATION AS OF MARCH 31, 2021

The Board of Directors of Piovan S.p.A. today approved the financial results of the first quarter of 2021:

• Consolidated revenue of € 64.8 million, improving 23.9% on March 31, 2020 (+15.0% at like-for- like consolidation basis, +28.5% at like-for-like exchange rates);
• Consolidated EBITDA of € 9.1 million (14.0% margin), +50.1% on March 31, 2020 (+40.7% at like- for-like consolidation basis);
• Consolidated Operating Profit (EBIT) of € 7.2 million (11.2% margin), +50.1% on March 31, 2020;
• Consolidated Net Profit of € 5.5 million (8.5% margin), +108.6% on March 31, 2020;
• Positive Consolidated Net Financial Position of € 5.6 million, improving € 12.9 million on March 31, 2020. Excluding the effects of the application of the IFRS 16, the consolidated net financial position at March 31, 2021 would amount to € 15.7 million, improving of € 15 million compared to € 0.7 million at March 31, 2020.

Santa Maria di Sala (VE), May 13, 2021 - The Board of Directors of Piovan S.p.A. ("Piovan" or the "Company") today reviewed and approved the Periodic Financial Information as of March 31, 2021.

The consolidated key financial highlights of the 2021 first quarter follow:

						Economic performance indicators			Changes
	(amounts in €'000)
			First			% on total			First			% on total			2021 vs
				quarter			revenues and			quarter			revenues and					%
												2020
				2021			other income			2020			other income
	Revenue	64,081	98.9%		51,282	98.0%	12,799			25.0%
	Other revenue and income	732	1.1%		1,045	2.0%	(313)			(29.9%)
	TOTAL REVENUE AND OTHER	64,814	100.0%		52,327	100.0%	12,487			23.9%
INCOME
	EBITDA	9,090	14.0%		6,057 (*)	11.6%	3,033			50.1%
OPERATING PROFIT	7,233	11.2%		4,820	9.2%	2,413			50.1%
PROFIT BEFORE TAXES	7,635	11.8%		4,252	8.1%	3,384			79.6%
Income taxes	2,121	3.3%		1,607	3.1%	514			31.9%
NET PROFIT	5,515	8.5%		2,644	5.1%	2,870			108.6%
Attributable to:
Owners of the parent	5,549	8.6%		2,743	5.2%
Non-controlling interests	(35)	(0.1%)		(98)	(0.2%)
Basic earnings per share	0.11				0.05
Diluted earnings per share	0.11				0.05

1. EBITDA in the first quarter of 2020 (indicated in the Periodic Financial Statements at March 31, 2020 at € 6,082 thousand) was restated net of
   "Provisions" for comparability with the 2021 figure, following a change to the indicators definition.

Revenue overview

Consolidated revenue (and other income)

Piovan Group reports revenue and other income of € 64.8 million in the first three months of 2021, improving 23.9% from € 52.3 million in the first three months of 2020.

Excluding revenues recognized by Doteco Group, consolidated from October 2020, total revenues and other income in the first three months of 2021 amounted to € 60.2 million, up 15.01% on the same period of 2020.

In terms of revenue only, in the first three months of 2021 Piovan Group revenue was €64.1 million, improving 25.0% on €51.3 million in the first three months of 2020.

Revenue calculated on a like-for-like basis (i.e. at the average exchange rate for the first quarter of 2020) would have improved by € 1.8 million at € 65.9 million, confirming growth of 28.5% compared to the first three months of 2020. Revenue was in fact mainly impacted by a negative effect from US Dollar and Brazilian Real movements.

Revenue by Market

		First quarter			First quarter			Change			% Change
		2021			2020
Plastic	45,832		42,418		3,414		8.0%
Food & non plastic	9,970		2,144		7,826		365.0%
Services	8,279		6,720		1,559		23.2%
Revenue	64,081	51,282		12,799	25.0%

Revenue by market in the first three months of 2021 indicates:

• Plastic revenue grew 8% on the same period of the previous year, despite the reduced contribution of Penta S.r.l., which focused mainly on the Food segment in the quarter; the contribution from the acquisition of Doteco was € 3.9 million;
• Food & non-plastic revenue was significantly up on the same period of the previous year (+365%), thanks to the completion in the quarter of a number of major orders begun in 2020;
• Services market reported revenue growth of 23.2% on the same period of the previous year. Revenue margin slightly decreased on the previous period due to Food segment growth, which has a lower margin than spare parts.

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Revenue by region

		First quarter			First quarter			Change			% Change
		2021			2020
EMEA	45,078		28,883		16,195		56.1%
ASIA	5,590		7,197		(1,607)	-22.3%
NORTH AMERICA	9,698		12,637		(2,939)	-23.3%
SOUTH AMERICA	3,715		2,565		1,150		44.9%
Revenue	64,081	51,282		12,799	25.0%

EMEA revenue was up 56.1% (70.3% of total revenue), mainly owing to the Food segment and the acquisition of Doteco.

South America saw excellent growth at over 70% on the same period of the previous year, calculated at like- for-like exchange rates, and mainly related to the strong Food segment improvement.

Asian markets declined 22.3% on the same period of the previous year as a result of the temporary slowdown in South East Asia for the conclusion of a number of major orders.

The North American market declined 23.3% compared to the first three months of 2020, mainly due to the postponement to the second quarter of a number of orders in the United States and the still weak Mexican market.

Consolidated operating and net results

EBITDA

In the first three months of 2021, EBITDA was € 9.1 million, increasing 50.1% on € 6.1 million in the first three months of 2020, with a revenue and other income margin of 14.0% (11.6% in the same period of 2020).

Excluding the figures realized by Doteco Group for the purposes of comparison, EBITDA comes to € 8.5 million, reporting an increase of 40.73%.

Operating Profit

In the first three months of 2021, Operating Profit was €7.2 million, increasing 50.1% on €4.8 million in the same period of the previous year, with a revenue and other income margin of 11.2% (9.2 % in the same period of 2020).

Net Profit

In the first three months of 2021, Net Profit was €5.5 million, with a revenue and other income margin of 8.5%, increasing 108.6% on €2.6 million in the same period of the previous year.

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	First quarter 2021	First quarter 2020
Net Profit attributable to:
- owners of the parent company	5,549	2,743
- Non-controlling interests	(35)	(98)
Earnings per share
- basic	0.11	0.05
- diluted	0.11	0.05

Earnings per share

Earnings per share were € 0.11 on March 31, 2021, compared to € 0.05 on March 31, 2020.

Consolidated Equity Overview

Consolidated Net Financial Position

The consolidated net financial position at March 31, 2021 was positive and equal to € 5.6 million, compared to positive € 4.3 million at December 31, 2020 and to negative €7.3 at March 31, 2020, with net cash generated of €1.3 million, if compared with the end of 2020. Excluding the effects of the application of the IFRS 16 accounting standard, the consolidated net financial position at March 31, 2021 would amount to € 15.7 million (compared to € 13.6 million at December 31, 2020 and € 0.7 million at March 31, 2020).

Capital expenditures totalling € 0.2 million were made in the first quarter of 2021 (€ 0.6 million in the first quarter of 2020).

€/000	31.03.2021	31.12.2020	31.03.2020
A. Cash	22	21	18
B. Current accounts and post office deposits	87,878	87,431	49,559
C. Cash & cash equivalent (A+B)	87,900	87,452	49,577
D. Current financial assets	5,161	5,146	6,100
E. Current bank loans and borrowings	(22,000)	(21,305)	(23,013)
F. Current portion of non-current debt	(18,970)	(17,833)	(11,954)
G. Other current financial liabilities	(1,715)	(1,741)	(1,558)
H. Current financial position (E+F+G)	(42,685)	(40,879)	(36,524)
I. Net current financial position (H+C+D)	50,377	51,719	19,153
J. Long term loans	(35,740)	(38,262)	(19,601)
K. Bond issued	-	-	-
L. Other non-current financial liabilities	(9,042)	(9,117)	(6,823)
M. Non-current financial position (J+K+L)	(44,782)	(47,379)	(26,425)
N. Net financial position (I+M)	5,595	4,340	(7,272)
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Significant events occurred after March 31, 2020

On April 29, 2021, the Shareholders' AGM, in addition to approving the 2020 Annual Accounts and the distribution of dividends totalling € 6,620,809, renewed the corporate boards on the conclusion of office. The new Board of Directors and Board of Statutory Auditors shall remain in office until the approval of the 2023 Financial Statements.

Outlook

Continuing along the strategic path undertaken, the Group is focused on increasing its contribution to the circular economy by developing products and solutions for the recycling value chain, increasing acquisitions, and working to achieve greater market share in the Food & Non-plastic market.

Growth in acquisitions is driven by a desire to grow in specific geographical areas in which to improve commercial penetration and continue to develop a strategy that is as comprehensive and customer-centric as possible, with a particular focus on major customers distributed across the globe, thus ensuring the maintenance of its technology and service leadership. The Group is also looking to companies with products/technologies that can lengthen the value chain offered by the Group. The acquisition of Doteco S.p.A. in 2020 moves in this direction, since the Group will be able to combine Doteco's film dosing technologies with Piovan's feeding and storage automations to become a leader in turnkey systems in this segment.

The order backlog at March 31, 2021 was in line with Group expectations. The continuing strength of the most resilient markets (e.g. medical, flexible packaging) and the recovery underway in the most cyclical industries (e.g. automotive, construction) have enabled the Group to look to 2021 with optimism. The risk of restricted mobility and the continuing landscape of uncertainty leave open the possibility of slowdowns in new orders or in the execution of projects in backlog, particularly with reference to plant installations and start-up.

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Investor Relations

The Company announces that, with effect from June 1, 2021, the role of Investor Relations Officer will be entrusted to Giovanni Rigodanza, substituting Patrizia Tammaro Silva. Besides the role of Investor Relations Officer, Mr. Rigodanza will also have the responsibility of the M&A area of Piovan Group.

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CONFERENCE CALL

Results as of March 31, 2021 shall be presented to the financial community through a conference call to be held on May 14 at 03:00 PM CET. You can participate in the conference call by calling one of the following numbers or by connecting through the webcast:

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