Saras S p A : First quarter 2021 Results

First Quarter 2021 results

11th May 2021

AGENDA

• Highlights and Scenario
• Segments Review
• Outlook 2021
• Financials
• Additional Information

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Important Notice

NON-GAAP MEASURE

ALTERNATIVE PERFORMANCE INDICATORS

With effect from Q4/19, the Group decided to update its accounting policy for the classification of derivative instruments in the reported results, classifying the realised and unrealised gains/losses on commodity and CO2 hedging derivatives within the Reported EBITDA, consistently with the entry of the purchase and sale of crude oil and products, against which they are realized and directly related, despite the recognition of the current value of the same as a counterpart of the income statement. In addition to the improvement objective mentioned above, this decision also stemmed from the options offered by IFRS 9.

In order to give a representation of the Group's operating performance that best reflects the most recent market dynamics, in line with the consolidated practice of the oil sector, the results at operating level and at the level of Comparable Net Result, non-accounting measures elaborated in this management report, are shown by evaluating the inventories on the basis of the FIFO method, however, excluding unrealized gains and losses on inventories deriving from scenario changes calculated by evaluating opening inventories (including the related derivatives) at the same unit values of closing inventories (when quantities rise in the period), and closing inventories at the same unit values of opening inventories (when quantities decrease in the period). Non-recurring items in terms of nature, materiality and frequency have been excluded from both the operating profit and the comparable net profit. The results thus calculated, which are referred to as "comparable", are not indicators defined

With effect from Q1/21 the Group decided to adopt a new segment reporting consistent with the change introduced by the transition from the CIP6 / 92 contract to the essentiality regime in the operating modes of the Sarlux plant, which takes into account the very high level of integration of the power plant with the refinery. The Group's activities are therefore represented in two segments: Industrial & Marketing, which includes integrated refining and power generation and Marketing, whose plants are highly integrated with refinery logistics. Also included in the segment are the activities previously included in the "Other Activities" segment, headed by the Group' companies Sartec and Reasar, whose technical services are also dedicated to refining. Renewable, which includes the activities previously included in the segment called "Wind", in line with the development plans in the field of photovoltaics and green hydrogen

In addition, in order to consistently represent the performance of the Group's activities, the historical financial results have been restated according to the new business segments identified as described above.

DISCLAIMER

Certain statements contained in this presentation are based on the belief of the Company, as well as factual assumptions made by any information available to the Company. In particular, forward-looking statements concerning the Company's future results of operations, financial condition, business strategies, plans and objectives, are forecasts and quantitative targets that involve known and unknown risks, uncertainties and other important factors that could cause the actual results and condition of the Company to differ materially from that expressed by such statements. This presentation has been prepared solely by the company.

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2 New Business Segments starting January 1st, 2021

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Q1/21 Highlights

EUR million	Q1/21	Q1/ 20
Reported EBITDA		(92.0)
Reported Net Result		(113.1)
Comparable EBITDA		56.7
Comparable Net Result		(0.4)
		March 31st 2021	December 31st 2020
Net Financial Position ante IFRS 16		(505)

Net Financial Position post IFRS 16	(545)

EBITDA comparable still affected by a weak macro environment with low middle distillates crack margins

EBITDA reported recovering thanks to the effect of oil price on stock inventory evaluation

Low EMC benchmark at -1.4 $/bl; Saras Industrial & Marketing premium at +4.8 $/bl

Effective Supply & Trading performances overweighted weak power operating performances

Net Financial Position (ante IFRS 16) at EUR -437 M (EUR -505 M as of December 31st , 2020) thanks to an improvement of the working

capital and first positive effects from the cost and investment reduction plan adopted for the year

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