Poligrafica S Faustino S p A : August 27,2021 - Results as at June 30, 2021 approved

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Poligrafica S. Faustino S.p.A .:

results at 30 June 2021 approved

Revenues: Euro 26.54 million (Euro 24.63 million at 30 June 2020)

EBITDA: Euro 1.62 million (Euro 1.42 million at 30 June 2020)

EBIT: Euro 0.45 million (Euro 0.43 million at 30 June 2020)

Net result: Euro 0.14 million (Euro 0.22 million at 30 June 2020)

Net Financial Position: Euro 4.19 million (Euro 5.63 million at March 31, 2021)

Summary consolidated economic data as at 30 June 2021

(in Euro/000)	30/06/2021		30/06/2020
Revenues from sales	26.541			24.626
Gross operating result (EBITDA)	1.620			1.423
Net operating result (EBIT)		453			426
Net income		143			223
Consolidated Net Financial Position
(in Euro/000)			30/06/2021	31/03/2021	31/12/2020
Cash and cash equivalents and short-term debt		15.236		15.362		13.254
Net medium / long-term debt			(19.422)		(20.989)		(19.616)
Total Net Financial Position			(4.186)		(5.627)		(6.362)

Castrezzato, August 27, 2021

The Board of Directors of Poligrafica S. Faustino, a company listed on the STAR segment of the Italian Stock Exchange active in communication technology services, today approved the half-yearly financial report as at 30 June 2021, subject to limited audit.

The consolidated economic and financial results and an analysis, in summary, by sector of activity are illustrated below.

Consolidated results as at 30 June 2021

Sales revenues amounted to Euro 26.54 million, up by 7.78% compared to the first half of 2020 (Euro 24.63 million) which was penalized more by the lockdown situation. Sales on foreign markets (almost entirely in the euro area) amounted to Euro 4.27 million in the first half of 2021 (16.1% of sales) and recorded an increase of 13.8% compared to the first half of 2020 (Euro 3.75 million equal to 15.2% of sales).

The gross operating margin (EBITDA), equal to Euro 1.62 million, marks an increase of 13.8% compared to 30 June 2020 (Euro 1.42 million). Despite a recovery in business volume, the overall gross operating margin is substantially in line in percentage terms with the figure

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for the same period of the previous year and is subject to an increase in the incidence of raw materials, personnel costs and other net operating costs not adequately offset by savings on services. The operating result (EBIT) is equal to Euro 0.45 million, up by 6.34% compared to Euro 0.43 million at 30 June 2020, after total depreciation of Euro 1.17 million, an increase compared to Euro 1.00 million at 30 June 2020.

Net profit amounted to € 0.14 million, a decrease compared to € 0.22 million at 30 June 2020 due to higher depreciation and financial charges related to the significant investments made.

The Net Financial Position is equal to Euro 4.19 million, a decrease compared to Euro 5.63 million at March 31, 2021.

The Group is carrying out new investments and in particular during the first half of 2021 it incurred a cost of Euro 1.71 million, largely for plant and machinery. Modest increases in intangible assets also involved management software.

Analysis of "Total revenues" by sector of activity

(in Euro/000)	30/06/2021	30/06/2020
Graphic Productive Area	17.823	16.865
Commercial Area	8.792	7.906
Total revenues and operating income	26.615	24.771

The Graphic Production sector, which includes the activities of the Parent Company and Sanfaustino Label S.r.l., recorded a recovery in sales of 5.9%. Despite this indicator, there is no sign of recovery in operating margins and, on the contrary, the impact of higher depreciation and the increase in financial charges significantly reduce EBIT (approximately - 47%) and reset the final result.

The Commercial sector, which refers to the subsidiary Linkonline S.r.l., which specializes in the marketing of consumer products for the office, records sales up by 11.6% as a result of the partial recovery of production and commercial activities. Against this preliminary consideration, the other indicators recorded overall margins recoveries even if not significant in absolute value.

Own shares

As of June 30, 2021, the Parent Company owns no. 62,903 treasury shares, equal to 5.599% of the n. 1,123,483 shares constituting the entire share capital, registered at a cost of € 369,337. Own shares did not change during the period.

Significant events subsequent to the end of the period

There are no significant events following the end of the half year that could have an impact on the data and considerations covered by this press release.

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Foreseeable evolution on management

In the preparation of this summary half-yearly report, the main financial and operational risks to which the Group is exposed were analyzed, in order to assess, in particular, the impact of the effects deriving from the spread of Covid-19.

The evolution of the pandemic led to new government measures that resulted in a new lockdown in April 2021 which, albeit for a lesser duration and with less restrictions than in spring 2020, resulted in a partial blockade of activities. This had an impact on the performance of the first half of 2021, partially slowing down the expected recovery in volumes, and, although in the immediate future, we cannot make certain forecasts on the final result for the year. we believe that the effects of the pandemic will have an economic impact also in the second half of 2021 and for a good part of 2022.

The company still has risk mitigation actions in place to protect employees which involved the increase in health and hygiene procedures.

Our efforts are also focused on the consolidation of support actions in the face of the partial recovery and on the planning of commercial strategies that allow to contain any further negative impacts on margins.

The continuation of the effects of the pandemic, the growing incidence of the cost of raw materials, and other events of lesser importance, have had the consequence that the expected results will have to be partially reduced, also in light of the fact that the second half is usually more affected of seasonal factors.

In conclusion, despite the foregoing, we are confident that we will maintain a substantial economic and financial balance in the current year

Overall, no critical issues emerged from the analysis conducted that could have significant impacts on the economic and financial situation of the Group, on the pursuit of its objectives and in general such as to compromise business continuity.

The manager in charge of preparing the corporate accounting documents, Rag. Maurizia Frigoli, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documentary results, books and accounting records.

COMPANY CONTACTS

Investor Relations Manager

Anna Lambiase

IR TOP, Investor Relations Experts Tel. [phone] www.irtop.comE-mail:[e-mail]

Company Affairs Department Tel. [phone] E-mail: [e-mail]: www.psf.it

Poligrafica S. Faustino (Reuters: PSF.MI) company quoted on the MTA Market - STAR Segment Italian Stock Exchange, is a Group which is specialized in publishing services and that integrates skills in communications, printing, packaging & labels, web, electronic document management and e-procurement. The Group Sanfaustino works like a network able to offer the study, design and implementation of media and promotion strategies, acquisition, loyalty, direct, incentive travel, corporate, management of flows and data processing, e- Procurement, in web strategy and electronic document management.

Specialist: Integrae Sim S.p.A. - www.psf.it

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CONSOLIDATED TOTAL INCOME STATEMENTS AS AT 30 JUNE 2021

(in Euro/000)

		1st Half 2021	1st Half
		2020
OPERATING REVENUES
Sales		26.541	24.626
Other operating income and revenues	74	145
Total operating revenues and income	26.615	24.771
OPERATING COSTS
Materials		(16.272)	(14.692)
Change in inventory		570	472
Services		(5.186)	(5.669)
Payroll costs		(2.899)	(2.521)
- less costs for capitalized in-house work	0	0
Other net operating (costs) revenues	(1.208)	(938)
Total operating costs		(24.995)	(23.348)
EBITDA		1.620	1.423
Amortization		(1.167)	(997)
Write-down/write backs of non-current assets (Goodwill)		-
EBIT		453	426
Financial income		2	1
Financial expenses		(160)	(111)
BEFORE TAX RESULT		295	316
Income taxes		(152)	(93)
NET RESULT FOR THE PERIOD		143	223
Proceeds allocated to equity		52	0
Costs attributable to equity		0	(46)
Reclassification adjustments for costs made in previous year	0	0
Total profit (loss)		195	177
Attributable to:
Controlling shareholders		195	177
Minority interest		0	0
PROFIT PER SHARE
No. ordinary shares		1.123.483	1.123.483
No. average ordinary shares		1.123.483	1.123.483
Basis profit (loss) per share	**in euro**	0,173	0,158
Diluted profit (loss) per share	**in euro**	0,173	0,158

It should be noted that at the end of the half year 2021 there were no. 12 hedging derivative contracts, the effects of which are reflected in the changes in shareholders' equity. The basic earnings per share is therefore equal to the ratio between the net profit for the year attributable to the Group and the average number of ordinary shares. The diluted earnings per share coincides with the basic earnings as the Parent Company has not issued bonds or other instruments convertible into financial instruments representing capital.

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CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2021

(in Euro/000)

STATEMENT OF FINANCIAL AND COMPLETION ACCOUNTS POSITION	30/06/21	31/12/20
ASSETS
NON CURRENT ASSETS
Property, plant and equipment (including rights of use)	9.214	8.708
Intangible assets (*)	1.087	1.143
Equity investments	3	3
Other non-current assets	211	259
Deferred tax assets	1.180	1.202
Total non-current assets	11.695	11.315
CURRENT ASSETS
Inventories	3.946	3.376
Trade receivables	15.891	16.307
Tax receivables	582	1.173
Other receivables	758	854
Current financial assets	0	0
Cash and banks	21.502	19.716
Total current assets	42.679	41.426
TOTAL ASSETS	54.374	52.741
NET EQUITY AND LIABILITIES	30/06/21	31/12/20
NET EQUITY
Share capital	6.162	6.162
Other reserves	610	610
Own shares (-)	(369)	(369)
Retained earnings	3.072	2.877
Total Group Equity	9.475	9.280
Minority Interests	0	0
Total Net Equity	9.475	9.280
NON CURRENT LIABILITIES
Loans	19.422	19.616
Employee severance indemnity and retirement reserves	921	950
Deferred tax liabilities	234	104
Other	0	0
Total non-current liabilities	20.577	20.670
CURRENT LIABILITIES
Loans	6.266	6.462
Trade payables	15.423	14.815
Tax payables	1.177	318
Other payables	1.456	1.196
Total current liabilities	24.322	22.791
TOTAL NET EQUITY AND LIABILITIES	54.374	52.741