SICIT S p A : 14 May 2021 – The Board of Directors of SICIT Group approves the additional consolidated periodic financial information as of 31 March 2021

THE BOARD OF DIRECTORS OF SICIT GROUP APPROVES THE ADDITIONAL CONSOLIDATED PERIODIC FINANCIAL INFORMATION AS OF 31 MARCH 2021

• Consolidated revenues of approx. € 22.0 mln (approx. € 19.7 mln in the first three months of
  2020, +11.9%)
• Adjusted consolidated EBITDA1 of approx. € 9.4 mln or 42.5% of revenues (€ 8.0 mln in Q120, +17.7%)
• Adjusted consolidated net profit2 of approx. € 6.4 mln (€ 5.2 mln in Q120, +22.6%)
• Consolidated net cash3 at 31 March 2021 approx. € 19.2 mln (€ 20.5 mln at 31 December 2020)

Chiampo (VI), 14 May 2021 - SICIT Group S.p.A. (the "Company" or "SICIT"), listed on the Mercato Telematico Azionario (MTA) - STAR Segment - of Borsa Italiana S.p.A., announces that the Board of Directors, which met today, reviewed and approved the additional consolidated periodic financial information as at 31 March

2021.

Massimo Neresini, CEO of SICIT, said: "In the first three months of the year we recorded double-digit increases in revenues, EBITDA and net profit. These results are very satisfactory and confirm the positive trend of the past year. The data show that the construction industry, and consequently our plaster retardants, are slowly recovering from the 2020 downturn due to the Coronavirus pandemic. Our main business area, agricultural biostimulants, is also still growing strongly in the first quarter of 2021. Animal fat also performed very well in the first quarter, due both to higher volumes and the upward trend in product prices. We recall that the last days of March 2020 had already been impacted by the total lockdown that affected tanning companies, resulting in a decrease in raw materials to be processed for fat production. During the quarter, our industrial investment plan and the expansion of the research laboratories continued, as well as the gradual but steady enlargement of the workforce. These factors, together with the high levels of production efficiency, have enabled the Group to achieve the excellent margins reported".

Consolidated revenue

In the first three months of 2021, SICIT generated revenue of € 22.0 million, an increase of € 2.3 million (+11.9%) compared to the first three months of 2020 (€ 19.7 million). The exchange rate effect was slightly negative (- 0.3%).

This growth concerned both biostimulants for agriculture (€ 2 million, +17%) and animal fat for the production of electricity generation biofuels (+ € 0.6 million, +29.4%), as well as revenues from services for the collection of tanning residues (+ € 0.1 million, +13.3%).

While the growth in revenues from biostimulants was mainly driven by higher volumes, which rose by +15.1%, the growth in revenues from animal fat benefited from both higher volumes (up +9.3%) and the positive trend in average sales prices (up +18.4%). The higher fat sales are also due to the higher volumes of raw materials processed in Q121 compared to the first three months of 2020, when the activities of the tanneries in the Vicenza

1. Operating profit (EBIT) before depreciation, amortisation and impairment of fixed assets, non-recurring costs and revenues.
2. Net profit before non-recurring costs and revenues, warrant valuation costs and revenues, related tax effect, non-recurring tax gains and expenses.
3. Cash and cash equivalents net of current financial liabilities and non-current financial liabilities, excluding warrant debt as this does not constitute a potential outflow for the Company.

district were temporarily suspended from the last days of March, following the Prime Ministerial Decree of 22 March 2020, with a consequent reduction in the raw materials processed by the Company.

On the other hand, retardants for the plaster industry (- € 0.4 million, -10.1%) are slowing, due to the continuing effects of the Covid emergency on the global construction market. On this point, sales of retardants had been exceptionally high in Q1 2020 (+19.6% compared to Q1 2019), due to stockpiling by customers in view of foreseeable Covid lockdowns. In this sense, retardant sales in Q1 2021, when compared to Q1 2019 (€ 3.6 million - last pre-pandemic year), were up a significant +7.6%.

Growth also affected almost all geographical areas: Europe (including Italy, +3.8%, of which Italy +17.8% and other European countries -3.8%), APAC (+28.9%), Americas (+2.9%) and the Rest of the World (Middle East and Africa, +92.5%).

Adjusted consolidated EBITDA4

Adjusted consolidated EBITDA amounted to € 9.4 million at 31 March 2021 (42.5% of revenues), an increase of € 1.4 million (+17.7%) compared to the first three months of 2020 (€ 8.0 million, 40.4% of revenues).

The absolute increase is mainly due to the growth of revenues and the related margin, partially offset by the rise in some fixed production costs, including: (i) personnel, partly related to a slight increase in the workforce (+ 3 FTEs), overtime and shift surcharges, as well as the provision for incentive plan expenses (MBO and 2020-2022 incentive plan, approved and accounted for in 2020 only from the second half of the year), (ii) industrial maintenance, due to a different phasing expected in 2021 compared to 2020 when some costs were postponed at the beginning of the COVID-19 pandemic in Italy, in addition to the natural and expected increase in costs related to the expansion of production facilities, (iii) variable commercial costs, mainly in logistics, and (iv) R&D costs, linked to the development of new products. Adjusted EBITDA increased as a percentage of revenues (42.5%) compared to the first three months of 2020 (40.4%), due to the positive price effect of animal fat mentioned above and to higher production and sales volumes, which enabled better absorption of fixed costs.

Adjusted EBITDA does not include non-recurring costs of € 0.16 million in the first three months of 2021, including non-recurring tax advisory services for the preparation of documentation for Patent Box tax relief with reference to the 2015-2019 tax periods (€ 0.1 million) and the temporary overlap of the position of country manager of the subsidiary Sicit USA Inc. (€ 0.06 million). In the first three months of 2020, non-recurring costs amounted to € 0.4 million for non-recurring consultancy for the transition from AIM Italia to MTA-STAR.

Adjusted consolidated net profit5

Adjusted consolidated net profit grew substantially in line with adjusted EBITDA (+€ 1.2 million, +22.6%) and amounted to € 6.4 million at 31 March 2021 (€ 5.2 million in the first three months of 2020).

The adjusted net result does not include, besides the tax effects relating to non-recurring costs described in the previous paragraph, the tax gains from the redemption of the deficit arising from the merger with SprintItaly S.p.A. (approx. € 0.3 million in the first quarter of 2021) which, in accordance with IFRS, had been recognised entirely in FY 2020 (but whose tax benefit in terms of lower current taxes will be seen over the five 2021-2025 tax periods).

1. Operating profit (EBIT) before depreciation, amortisation and impairment of fixed assets, non-recurring costs and revenues.
2. Net profit before non-recurring expenses and revenues, non-operating income from change in the fair value of warrants, and the tax effect of the previous points. The 2019 figures include, for comparison, SICIT Chemitech S.p.A. from 1 January 2019.

Consolidated available funds6

Consolidated available funds amounted to € 19.2 million at 31 March 2021 (€ 20.5 million at 31 December 2020). Operating cash flows in the first three months of 2021 were positive by € 3.6 million before net investments of €

4.1 million, non-recurring costs of € 0.2 million and the purchase of treasury stock for a total value of approximately € 0.6 million.

Convertibility of SICIT Group warrants and effects on shareholders' equity, financial liabilities for warrants

Following the acceleration clause provided for in the SICIT Group Warrant Regulations, the terms of convertibility of the warrants into ordinary shares of the Company changed, but the contractual terms remained unaltered. From 1 March 2021, the warrants are convertible into ordinary Company shares at a fixed ratio (0.2713), in exchange for a fixed amount of cash (€ 0.1 per share). These warrants, which were accounted for as a financial liability until 28 February 2021 and measured at fair value at the reporting date, were therefore classified from 1 March 2021 as an equity instrument by reclassifying their fair value net of deferred taxes.

Investments

In line with its growth plan, in the first three months of 2021 SICIT continued investments initiated in previous periods and aimed at improving processes and products and expanding production capacity. Among the most significant are:

• completion of the expansion of the agronomic and chemical laboratories at the Arzignano site, to improve and enhance R&D into new products, alongside its customers;
• continued construction of the new warehouse at the Arzignano site;
• completion of the animal fat refining and re-esterification plant in order to obtain a high quality biofuel.

Significant events during the first three months of 2021

These include: (i) agreement with MiSE for the financing of the Company's Agrifood project (see press release of 26 January 2021), (ii) obtaining the first ESG sustainability rating (see press release of 14 February 2021), (iii) conversion of special shares (see press releases of 26 February and 3 March 2021), (iv) attainment of Patent Box tax benefit for the years 2015-2019 (see press release of 22 February 2021), (v) implementation of the warrant acceleration clause (see press releases of 1, 3 and 5 March). The press releases are available in the Investor Relations / Price Sensitive Press Releases section at www.sicitgroup.com.

Significant events following the end of the period

The main events after the end of the quarter were:

1. the Communication pursuant to Article 102 of Legislative Decree 24/2/1998 no. 58 (TUF) and Article 37, paragpraph 1, of the Consob regulation adopted by resolution no. 11971 of 14 May 1999, with which Circular BidCo S.p.A. ("Bidder") announced its intention to make a voluntary tender offer ("Bid" or "Takeover Bid") pursuant to and in accordance with Articles 102 and 106, paragraph 4, of the TUF. For further details, please see the press release of 16 April 2021 and the Investor Relations / Takeover Bid section on the website www.sicitgroup.com;
2. the notice of expression of interest and non-binding offer concerning the intention to

launch a public tender offer for all the shares of the Company, subject to certain conditions, received from Syngenta Crop Protection AG and Valagro S.pA. (Syngenta

6 Cash and cash equivalents net of current financial liabilities and non-current financial liabilities, excluding warrant debt as this does not constitute a potential outflow for the Company.

Group). For further details, please see the press release of 5 May 2021. Finally, the Syngenta Group announced today that it has abandoned its intention to proceed with a voluntary tender offer for the shares of SICIT pursuant to articles 102 and 106, paragraph four, of the TUF.

Outlook on operations

The Group's performance as at 31 March 2021 shows revenue and margin growth compared to the first three months of 2020 substantially in line with expectations, albeit with a different mix among the agricultural/industrial/fat sectors.

The Group will also continue its investment plan in 2021 with the completion of the industrial and technical expansion at Arzignano and in particular the new warehouse, new laboratories, and progress on the new plant for granules and tablets, as well as its strategy of developing new products in close collaboration with its customers.

As regards business performance in 2021, growth in Q1 confirms the solid outlook in biostimulants, supported by the increasing focus on the sustainability of production systems. In the plaster retardants sector, demand could remain volatile, especially in the first half of the year. Lastly, the robust availability of raw materials recorded in Q1 2021, together with the reasonable expectation of no further lockdowns like those that occurred between the end of March and the end of April 2020 causing a temporary interruption in supply, allows us to confirm good growth prospects also in the animal fat sector.

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OTHER RESOLUTIONS OF THE BOARD OF DIRECTORS

Appointment of the financial and legal advisors

In relation to the voluntary tender offer on all the shares of SICIT promoted by Circular BidCo S.p.A., the Company informs that the Board of Directors has appointed Nomura Financial Products Europe GmbH Italian Branch as financial advisor and the law firm White & Case LLP as legal advisor. The independent directors, to the extent of their competence, have also appointed the law firm Galbiati, Sacchi e Associati as legal advisor and are in the process of appointing a financial advisor, whose appointment will be promptly communicated.

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Conference call

Due to the ongoing tender offer, as well as the potentially competing non-binding offer, as described above, the Company has decided to temporarily suspend its usual conference calls with analysts until completion of the aforementioned processes.

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The manager responsible for preparing the company's financial reports, Giampaolo Simionati, declares, pursuant to Article 154 bis, paragraph 2 of the Consolidated Law on Finance, that the accounting information contained in this press release is consistent with the underlying documents, books and accounting records.

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SICIT Group

Founded in 1960 in Chiampo (VI), SICIT was one of the first companies in the world to introduce protein hydrolysates of animal origin on the global biostimulant market. A pioneer of the circular economy, the company uses a process of hydrolysis of residues from the tanning industry to manufacture a high added value product for agriculture (biostimulants) and the plaster industry (retardants). Thanks to a qualified team, highly automated and technologically advanced production facilities, state-of-the-art laboratories and constant investment in R&D, SICIT has become an international reference point, supplying the main players in the agrochemical and industrial sectors.

Since June 2020 SICIT has been listed on the MTA, STAR Segment, of the Italian Stock Exchange.

Web:www.sicitgroup.com

LinkedIn:http://bit.ly/32Q1nrc

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