PRESS RELEASE

INDUSTRIAL PARTNERSHIP BETWEEN LABOMAR AND SESA GROUP

LABOMAR AND VAR GROUP SIGN PARTNERSHIP AGREEMENT

FOR THE DEVELOPMENT OF DIGITAL E-COMMERCE PLATFORMS ON THE CHINESE

MARKET FOR NUTRACEUTICAL PRODUCTS

Empoli (FI), September 7, 2021

Labomar SpA (AIM Ticker: LBM), an Italian-based international nutraceutical enterprise, and Sesa ("SESA"

  • SES.MI), reference player in Italy in technological innovation and digital services for the business segment, through its subsidiary Var Group SpA, active in the Software and System Integration sector, have signed a partnership agreement for the development of Chinese market digital e-commerce platforms for Nutraceutical products. The agreement involves the establishment of a Newco whose majority will be owned by Labomar and participated by Var Group which will develop the partnership project under the LaboVar brand.

The partnership will focus on the development of an e-commerce platform on the Chinese digital market for Labomar's Nutraceutical products (food supplements, cosmetics and well-being products).

The digital sales platform will be developed by Adiacent, a Sesa Group company operating in the customer experience and digital marketing sector, specialised in digital e-commerce platforms and digital marketing for international enterprises on the Chinese market, thanks to the long-standing partnership with Alibaba and a direct presence in China through a team of Chinese mother-tongue staff based in Shanghai. The start up of operations and the consequent first revenues are expected to occur in the First Half of 2022.

The partnership is an opportunity to operate on one of the largest marketplaces in the world (China), bringing top-quality products and a business model focused on digital sales platforms, such as Tmall (marketplace leader in China for online business-to-consumer retail, owned by the Alibaba Group) and Wechat (Tencent Group), through mini-programs - proprietary tailor-madee-commerce solutions - developed by Adiacent China for leading international customers.

The Adiacent China team has recently been enriched with resources and specializations thanks to the acquisition of Fireworks in the first half of 2021, doubling the size of the workforce, with about 40 Chinese mother-tongue and international staff based in Shanghai.

"I am very satisfied with the launch of this collaboration with such a highly-respected and experienced technological partner as Sesa Group: it will allow Labomar to gain a foothold on such a large market as the Far East, quickly and flexibly, mirroring our company's "modus operandi". We at the same time will be able to quickly tap into the potential of this area. LaboVar will allow us to test our ability to penetrate the Asian markets, which report very strong growth in personal care products. The Chinese consumers, in particular, are young and very oriented to European food supplements: we want to precisely meet this customers need", stated Walter Bertin, founder and CEO of Labomar.

"We are happy to collaborate with such a dynamic and internationally-focused enterprise as Labomar. Through the partnership with Labomar, we further pursue our objective of supporting Italian and European enterprises in bringing top-quality products to one of the world's largest digital market, extending our expertise and specialisations into an industrial sector with strong growth potential", stated Francesca Moriani, CEO of Var Group.

"Adiacent will support the international development of Labomar, thanks to the strong specialisation gained through the strategic partnership with the Alibaba Group and our established presence in China, with a team

SeSa S.p.A. headquarters in Empoli (Florence), Via della Piovola 138, Share Capital Euro 37,126,927.50 f.p.,

VAT number, Fiscal and number on the Florence Company Register 07116910964

Ph. Number: 00 39 0571 997444; website www.sesa.it

of specialist staff based in Shanghai and using the Tmall platform, a marketplace leader in China for business- to-consumer online retail, owned by the Alibaba Group. Our role as Digital Marketing Enabler on the Chinese market is further strengthened, supporting the quality of European and "Made in Italy" products", stated Paola Castellacci, CEO of Adiacent.

"We continue to grow sustainably by enabling the digital transformation of Italian and European businesses. The partnership with Labomar - an Italian enterprise focused on sustainable international growth - is an example of how Sesa Group, thanks to ongoing investment in expertise and innovation, supports leading industrial customers in the critical phases of their development on the overseas digital markets, in particular China - the largest globally - pooling the specialisations recently brought to the Group with the acquisition of

Fireworks", stated Alessandro Fabbroni, CEO of Sesa.

****

Labomar S.p.A., founded by Walter Bertin in Istrana (province of Treviso) in 1998, is a CDMO (Contract Development and Manufacturing Organization) engaged in the development and production of food supplements, medical devices, foods for special medical purposes and cosmetics for third parties. Its research team creates, develops and manufactures high added-value and innovative content nutraceutical products. Many of the supplements produced by Labomar leverage proprietary technologies which boost the bioavailability of the active ingredients, modulate their gastrointestinal absorption and improve their taste. Over more than 20 years, Labomar has built a business model which sets it apart from its competitors and generates value for all stakeholders, providing a high quality and productivity standard full service. The company boasts a well structured and cutting-edge research and development department, a commercial team which reacts quickly to market demands and a high level of product differentiation thanks to its proprietary patents and formulas.

Labomar reported in 2020 preliminary consolidated revenues of approx. Euro 61.1 million (at like-for-like exchange rates approx. Euro 61.5 million), up 26.3% (27.2% at like-for-like exchange rates) on 2019. The 2020 figure includes - for the first time - the revenues and margins of the Canadian ImportFab for a full year, acquired in October 2019. Labomar SpA's revenues in 2020 were approx. Euro 51.8 million (+10.2% vs 2019). In July 2021, Labomar acquired 63% of the Welcare Group. The Group comprises Welcare Industries S.p.A. and Welcare Research S.r.l., producers of medical devices for skincare, with its registered office in Orvieto. Labomar sincerely believes in operating as a business centred on sustainability and the well-being of the individual, the environment and the community. It has therefore amended it By-Laws to become a Benefit company. This new legal status, introduced in Italy in 2016, formalises the decision to develop a responsible, sustainable and transparent development model, which marries operating-earnings objectives with social and environmental aspects.

Sesa S.p.A., based in Empoli (FI), active on the whole national territory with presence over some foreign countries including Germany, Switzerland, Austria, France, Spain, Romania and China, is the holding of a Group which constitutes the reference player in Italy in technological innovation and digital services for the business segment, with consolidated revenues of approximately Euro 2,037 million and 3,500 employees as of April 30, 2021.

Sesa Group has the mission of offering technological solutions and digital transformation services to companies and organizations, supporting them in their innovation path. Thanks to the skills and specialization of its human resources, Sesa Group operates in the value-added segments of Information Technology, such as Collaboration, Cloud, Digital manufacturing, ERP & Vertical Solutions, Business Services, Digital Security, Customer Experience.

Sesa Group operates through four main business sectors:

  • VAD (Value Added Distribution) sector with revenues of about Euro 1,600 million and 425 human resources as of April 30, 2021;
  • SSI (Software and System Integration) sector with revenues of about Euro 480 million and 2,500 human resources as of April 30, 2021;
  • Business Services sector with revenues of about Euro 47 million and 410 human resources as of April 30, 2021;
  • Corporate sector with revenues of about Euro 20 million and 200 human resources as of April 30, 2021.

Sesa Group pursues a sustainable development policy for the benefit of its Stakeholders and has achieved in the period 2011-2021 a track record of continuous growth in employment, revenues (CAGR revenues 2011-2021 +10.6%) and profitability (CAGR Ebitda 2011-2021 +13.9%).

In 2021, the Company introduced sustainability in its bylaw and launched the B Corp certification process. Sesa S.p.A. is listed on the STAR segment of Borsa Italiana MTA Market (ISIN Code: IT0004729759).

SeSa S.p.A. headquarters in Empoli (Florence), Via della Piovola 138, Share Capital Euro 37,126,927.50 f.p.,

VAT number, Fiscal and number on the Florence Company Register 07116910964

Ph. Number: 00 39 0571 997444; website www.sesa.it

For Media Information

Labomar Investor Relations

Labomar Press Office

Claudio De Nadai - +39.0422.677203 - claudio.denadai@labomar.com

Thanai Bernardini - +39.335.7245418 - me@thanai.it

Alessandro Bozzi Valenti - +39.348.0090866

Mara Di Giorgio - +39 335 7737417 - mara@twin.services

- alessandro.valenti@thanai.it

For Media Information

For Financial Information

Community S.r.l.

Sesa S.p.A.

Giuliano Pasini

Conxi Palmero, Investor Relations Manager

+39 02 89404231 - sesa@communitygroup.it

+39 0571 997326 - investor@sesa.it

Idea Point S.r.l.

Alessandro Pasquinucci

+39 0571 997374 - info@ideapoint.it

SeSa S.p.A. headquarters in Empoli (Florence), Via della Piovola 138, Share Capital Euro 37,126,927.50 f.p.,

VAT number, Fiscal and number on the Florence Company Register 07116910964

Ph. Number: 00 39 0571 997444; website www.sesa.it

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SeSa S.p.A. published this content on 07 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 September 2021 07:21:02 UTC.