SergeFerrari : Half yearly financial reports and audit reports/limited reviews / Half yearly financial report

2022 Half-year Financial Report

2022 Half-year Financial Report

SERGEFERRARI GROUP

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Half-year Financial Report

January 1 - June 30, 2022

(Article L. 451-1-2 III of the French Monetary and Financial Code

Articles 222-4 et seq. of the AMF General Regulation)

SergeFerrari Group

Limited liability company with capital of €4,919,703.60

Headquarters: ZI de La Tour du Pin - 38110 Saint Jean de Soudain, France 382 870 277 Vienne Commercial Register

This financial report relates to the six months ended June 30, 2022 and was prepared in accordance with the provisions of Article L. 451-1-2 III of the French Monetary and Financial Code and Articles 222- 4 et seq. of the French Financial Markets Authority ("AMF") General Regulation.

It was disclosed and made available in line with the provisions of Article 221-3 of the AMF General Regulation and may be viewed at www.sergeferraribourse.com.

Contents
Statement by the person responsible for the half-year financial report	p	3
Half-year activity report	p	4
First half 2022 results	p	4
Description of the main risks and uncertainties	p	5
Related party transactions	p	5
Half-year condensed consolidated financial statements	p 6
Statement of financial position	p	7
Consolidated income statement	p 8
Statement of comprehensive income	p 9
Statement of changes in consolidated equity	p 10
Consolidated statement of cash flows	p 11
Notes to the half-year condensed consolidated financial statements	p 12
Statutory Auditors' Report on the
2022 half-year financial report	p 31

2022 Half-year Financial Report

SERGEFERRARI GROUP

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STATEMENT BY THE PERSON RESPONSIBLE FOR THE HALF-YEAR FINANCIAL REPORT

I hereby certify that, to the best of my knowledge, the condensed consolidated financial statements for the six months ended June 30, 2022 have been prepared in accordance with applicable accounting principles and present a fair view of the assets and liabilities, financial position and earnings of the Company and all of the companies included in the consolidation scope. I also certify that the half-year activity report presents a fair view of the main events occurring during the first six months of the year, the impact thereof on the half-year financial statements and the main related party transactions, as well as a description of the main risks and main uncertainties for the remaining six months of the year.

Saint Jean de Soudain

September 5, 2022

Sébastien Baril

Chairman of the Executive Board

2022 Half-year Financial Report

SERGEFERRARI GROUP

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HALF-YEAR ACTIVITY REPORT

Consolidated financial statements on which a limited review was performed

€m		H1 2022	H1 2021	Change
Revenues	170.0	144.7	+18%
REBIT1	16.1	14.5	+11%
Operating income	15.9	14.0	+13%
Net income, Group share	10.3	8.7	+17%

Brisk business on strategic markets

SergeFerrari Group recorded first half 2022 revenues of €170.0 million, up 18% at current consolidation scope and exchange rates and up 15.9% at constant consolidation scope and exchange rates, despite a challenging comparison base (record sales volume generated in first half 2021). Growth was fueled by continuing strong demand on the Group's main markets, mainly driven by:

• continued buoyancy in the residential home sector, particularly in the solar protection business, and a booming home furniture market driving sales for the furniture and marine business;
• recovery in the event and hospitality market served by the modular structures business.

The Group was able to leverage these growth drivers on the strength of its positioning in strategic markets, despite supply issues and strain on production capacity impacting Q2 2022 deliveries.

Firm response to supply cost inflation

Against a backdrop of high inflation in input costs, SergeFerrari Group posted REBIT of €16.1 million, up 11% versus H1 2021. The Group succeeded in mitigating the impact of rising raw material prices by passing part of the increase onto its selling prices, while continuing to tightly manage structural costs.

Accordingly, operating income amounted to €15.9 million versus €14.1 in H1 2021. Finally, boosted by the reduction in cost of debt and favorable currency movements, net income, Group share came to €10.3 million, up 17% from €8.7 million in H1 2021.

Rock-solid financial position
	€m		June 30, 2022	Dec 31, 2021
	Net debt	(82.5)	(54.8)
	Net (debt)/cash (excl. IFRS 16)	(55.6)	(26.4)
	Shareholders' equity, Group share	123.1	109.1

SergeFerrari Group generated first half 2022 free cash flow of €27.8 million versus €24.4 million in first half 2021. Accordingly, the net debt figure used to calculate covenant ratios (excluding the impact of IFRS 16) was €56 million, representing approximately 42% of Group shareholders' equity.

1 REBIT = Operating income +/- restructuring costs +/- accounting impact of acquisition purchase price allocation (PPA) operations

2022 Half-year Financial Report

SERGEFERRARI GROUP

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Outlook

The Company confirms its 2022 target of €335 million in consolidated revenues. The Group will remain particularly vigilant with regard to the availability of energy sources and developments in energy prices over the coming months. SergeFerrari Group remains confident in its ability to continue to grow amid a volatile environment hampered by constraints, thanks to its broad geographical footprint spanning over 80 countries and the potential offered by its four strategic markets.

Description of main risks and uncertainties

The Group has updated its risk map, in particular by upgrading the risks related to energy costs and the availability of energy sources in line with geopolitical developments.

Related party transactions

Principal transactions with related parties are described in Note 32 to the half-year condensed consolidated financial statements.

There have been no changes to the related party transactions described in the last annual report that could have had a material impact on the issuer's financial position or earnings for the first half of the current fiscal year.

2022 Half-year Financial Report

SERGEFERRARI GROUP

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