SICIT S p A : 9M 2020 consolidated results’ presentation (Nov. 16th, 2020 conference call)

A TRUSTWORTHY PARTNER WITH AN OUTSTANDING ITALIAN ENVIRONMENT

FRIENDLY HISTORY APPRECIATED THROUGHOUT THE WORLD

3Q 2020 Financial results

13 November 2020

KEY FINANCIAL HIGHLIGHTS (1)

	Revenue growth		EBITDA adj(2) margin	Net result adj(3) margin			Net cash(4)			Capex
+11.5%		38.7%		23.7%					21.2 million			11.1 million
		48.2		16.1	18.7	9.3	11.4		29.3						11.1
43.2
									21.2
																5.2
						38.7%
				37.2%		21.7%	23.7%
				30.9.19	30.9.20
				30.9.19	30.9.20		31.12.19	30.9.20		30.9.19	30.9.20
30.9.19	30.9.20

• Strong financial results in 3Q20 confirm the positive trend of the first half 2020 notwithstanding the difficult environment
• Organization responsiveness to deal with COVID-19 effects, safeguarding workers and assuring supply to customers
• Revenue growth reflecting underlying contribution mainly from biostimulants and animal fat
• Retardants suffer customers' factories shutdown both in 2Q and 3Q after the increase of revenue in 1Q driven by customers' stockpiling at start of COVID-19 lockdowns
• Robust capex at €11.1m to support future expansion and operation flexibility (focus on ri-esterification plant and granules plant in 3Q)
• Net cash at €21.2m at 30 September 2020 after payment of €8.8m of dividends

1. Euro million
2. EBIT before amortisation/depreciation and impairment losses, non-recurring costs and revenue, including Sicit Chemitech S.p.A.'s EBITDA for the period January-April (consolidated as of 2 May 2019)
3. Before non-recurring costs and revenue, costs and revenue from warrant measurement, the related tax

effect and the financial performance of Sicit Chemitech for the period January-April 2019 (consolidated as of 2 May 2019).

(4) Excluding financial liabilities for warrant

3Q 2020 Financial results

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REVENUES BREAKDOWN

Breakdown by sector		Breakdown by region
Other Services	Americas	MEA
1%	5%
2%
Fat		13%

10%

Retardants	Agriculture	APAC	Europe
23%
61%	27%	58%

SECTOR

• Agriculture products: continuous strong focus of key accounts to develop SICIT products in ASIA and LATAM.
• Retardants: continues the shut-down of certain customers in 3Q20. Negative outlook for the full year due to deterioration of macro- scenario
• Fat: recover of volumes in 3Q20 after the drop suffered in 2Q20 as a consequence of Covid and tanneries shut-down. Stable selling prices in 3Q20 compared to 2Q20. Total volumes at 30.9.20 still below the 30.9.19
• Services: volumes lost in 2Q20 due to temporary shut-down of tanneries almost fully recovered in 3Q20.

REGION

(in Euro million)	30.9.19	30.9.20	Var.	Var. %
Products for agriculture	23.4	29.3	5.8	25.0%
Retardants	12.3	11.2	(1.1)	(8.8%)
Fat	4.6	5.0	0.4	8.4%
Other industrial products	0.6	0.4	(0.2)	(36.8%)
Total products	40.9	45.9	4.9	12.1%
Services	2.3	2.3	0.0	0.7%
Totale revenues	43.2	48.2	5.0	11.5%

(in Euro million)	30.9.19	30.9.20	Var.	Var. %
Italy	9.7	10.6	0.8	8.6%
Europe (w/o Italy)	14.0	14.4	0.4	2.7%
APAC	11.4	13.8	2.5	21.6%
North America	2.3	2.4	0.0	2.0%
LATAM	2.2	3.4	1.1	50.2%
MEA	1.3	1.4	0.1	8.3%
Total products	40.9	45.9	4.9	12.1%

• Europe/APAC positively influenced by Agriculture products, confirming the positive trend of the last twelve months
• LATAM driven by Agriculture products
• North America outperforming in the retardants sector (potential negative impact from Covid in 4Q20).

3Q 2020 Financial results

3

PROFIT AND LOSS

Euro million	30.9.20	%	30.9.19	%	Var.	%
Revenue	48.2	100.0%	43.2	100.0%	5.0	11.5%
Gross profit	21.9	45.4%	18.1	41.8%	3.8	20.9%
Selling	(2.8)	(5.8%)	(2.8)	(6.4%)	(0.0)	0.7%
R&D	(1.1)	(2.2%)	(1.1)	(2.6%)	0.1	(6.8%)
G&A	(3.2)	(6.6%)	(2.8)	(6.6%)	(0.3)	11.7%
Other income (net)	0.2	0.4%	0.4	1.0%	(0.2)	(56.4%)
Operating profit	15.0	31.2%	11.8	27.2%	3.3	27.7%
Non recurring	(1.9)	(4.0%)	(10.8)	(25.0%)	8.9	(82.1%)
EBIT	13.1	27.2%	0.9	2.2%	12.1	1289.5%
Net financial	(5.6)	(11.6%)	5.2	12.1%	(10.8)	(403.0%)
EBT	7.5	15.5%	6.2	14.2%	1.3	21.3%
Taxes	(1.6)	(3.4%)	(4.1)	(9.5%)	2.5	(60.0%)
Net result	5.9	12.1%	2.1	4.8%	3.8	182.3%
Net result adjusted (1)	11.4	23.7%	9.3	21.6%	2.1	22.5%
EBITDA adjusted (2)	18.7	38.7%	16.1	37.2%	2.6	16.2%

1. Before non-recurring costs and revenue, costs and revenue from warrant measurement, the related tax effect and the financial performance of Sicit Chemitech for the period January-April 2019 (consolidated as of 2 May 2019)
2. EBIT before amortisation/depreciation and impairment losses, non-recurring costs and revenue, including Sicit Chemitech S.p.A.'s EBITDA for the period January-April (consolidated as of 2 May 2019)

Reported data at 30.9.19 does not include Sicit Chemitech results for the period Jan-Apr (included in adjusted Net result and adjusted EBITDA for comparison purposes).

• Gross profit:strong margin improvement in 3Q20 driven by (i) better mix of sales, (ii) efficiencies achieved in operations (iii) sales volumes increase that allowed a better leverage effect, (iv) production volumes increase that allowed ad better absorption of fixed costs (no under- absorption of fixed costs as occurred in 2Q20).
• Opex:stable selling and R&D
• G&A:cost increase mainly driven by strengthening of governance and recurring consultancies post listing process
• Non recurring:at 30.9.20 include advisory costs for translisting to MTA (€1.0m), bonuses to management team related to the translisting process (€0.2m), donations to Vicenza and Milan hospitals related to Covid emergency (€0.6m) and other Covid-related costs (€0.1m). At 30.9.19 non recurring refer to listing costs accounted for, according to IFRS2 (€10.2m, non monetary and non relevant for tax purposes) and consultancies for SICIT 2000-SprintItaly merger and AIM listing (€0.6m).
• Net financial:include mainly the change in fair value of the SICIT warrant (- €5.5m at 30.9.20, +€5.2m at 30.9.19). These income/costs are just figurative and have not cash out-flow and tax effects.

3Q 2020 Financial results

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