VAA Vista Alegre Atlantis SG : S, S.A. informs about 3rd Quarter Results 2022

CUMULATIVE RESULTS

3RD QUARTER OF 2022

VAA - VISTA ALEGRE ATLANTIS SGPS, S.A.

Q3 2022 Earnings Announcement

10th of November 2022

Cumulative results up to 3rd trimester 2022

Highlights

• Turnover reached 103 million euroscumulative to September 2022, an increase of 28.3%compared to the previous year;
• Cumulative EBITDA of 14.9 million eurosrepresents an increase of 1.2%compared to the analogous period in 2020;
• Foreign markets represent 75.4%of turnover, predominantly sales to European countries;
• Consolidated net debt continues on the downward trajectory, reduced by
  6.5 million eurosin the first 9 months of 2022;

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Vista Alegre Atlantis, SGPS, S.A. * Public company * Head office: Lugar da Vista Alegre, Ílhavo * Registered with the Commercial Registry of

Ílhavo * Taxpayer no 500 978 654 * Share capital 134,120,048.00 Euros

Q3 2022 Earnings Announcement

10th of November 2022

Activity

The first nine months of 2022 were marked by a strong increase in the costs of energy, fuel and raw materials, as a result of the increase in inflation caused by the conflict between Russia and Ukraine, thus generating an increase in uncertainty in the macroeconomic context at a global level. However, in this adverse environment, Vista Alegre demonstrated resilience and adaptability, mitigating some of this negative impact, both through the development of a series of investments over recent years aimed at improving the efficiency of its processes and through more efficient management of consumption and means of production.

Cumulatively in the first 9 months of 2022 the cost of gas was 16.1 million euros, compared to 2.3 million euros in the same period of 2021, an increase of 13.8 million euros directly penalising the company's EBITDA and operating income. The strong volatility of the average price of gas contributed to this, reaching the highest price ever in the 3rd quarter, surpassing 300€/MWh, twice as high as in the 1st and 2nd quarters of 2022.

In cumulative terms, Vista Alegre reached a turnover of 103 million euros in September of 2022, registering an increase of 28.3% compared to the same period in 2021, mainly supported by sales growth in the Porcelain and Stoneware segments, although growth was evident in all business segments.

The international markets of Brazil and the United States of America, and the markets of the Netherlands, France, Spain and Germany in Europe, were the main contributors to sales in the foreign market, representing 75.4% of the turnover of Vista Alegre, with 77.5 million euros in sales.

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Vista Alegre Atlantis, SGPS, S.A. * Public company * Head office: Lugar da Vista Alegre, Ílhavo * Registered with the Commercial Registry of

Ílhavo * Taxpayer no 500 978 654 * Share capital 134,120,048.00 Euros

Q3 2022 Earnings Announcement

10th of November 2022

		T €
Porcelain and related products	34,601	27,432	26.1%
Earthenware	11,119	8,643	28.7%
Stoneware	46,062	36,259	27.0%
Crystal and Glass	10,934	7,713	41.8%
Total	102,717	80,047	28.3%

The Retail channels maintained good performance during the third quarter of 2022, achieving accumulated sales of 34.6 million euros, up from 26.4 million euros in the third quarter of 2021, thus recording an increase of 31%.

Results

Grupo Vista Alegre's consolidated results for the first nine months of 2022 showed a performance above that of the same period last year, with turnover reaching 103 million euros (28.3% up on the same period of 2021).

EBITDA stood at 14.9 million euros representing an improvement of 1.2% compared to the same period in 2021. It should be noted that the escalating conflict between Russia and Ukraine has accentuated inflationary pressure in Vista Alegre's main export market (Europe), with a direct impact on increased production costs, namely the cost of energy, logistics and raw materials, thereby adversely affecting the company's results.

		M€
			Variation (%)
Turnover	102.7	80.0	22.7	28.3%
E B I T D A	14.9	14.7	0.2	1.2%
EBITDA Margin	14.5%	18.4%		-3.9 pp
Operating Income	3.0	5.3	-2.3	-43.0%
Operating Margin	2.9%	6.6%		-3.7 pp
Income before taxes	-0.1	1.4	-1.5	-109%
Income tax	-0.2	-0.8
Net income	-0.3	0.6	-0.9	-146%

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Vista Alegre Atlantis, SGPS, S.A. * Public company * Head office: Lugar da Vista Alegre, Ílhavo * Registered with the Commercial Registry of

Ílhavo * Taxpayer no 500 978 654 * Share capital 134,120,048.00 Euros

Q3 2022 Earnings Announcement

10th of November 2022

The operating profit was a positive 3.0 million euros and a negative net profit of 0.3 million euros, below that of the same period last year (0.6 million euros), impacted by the increase in energy, fuel and raw material costs.

Debt

Grupo Vista Alegre, in the first nine months of 2022, reduced consolidated net debt by around 6.5 million euros compared to 31st of December 2021, maintaining a high level of cash and cash equivalents, thus indicating the solidity of its treasury:

Financial debt (bank loans, bond and leasing)	88,552	82,871	85,583	88,585
Operating debt (export remittances, confirming and factoring)	7,284	9,153	9,043	8,612
Operating lease (IFRS 16)		6,415		6,752		7,188		7,898
Consolidated debt	102,251	98,775	101,814	105,095
Cash and cash equivalents		-27,738		-22,046		-21,722		-24,079
Consolidated net debt	74,514	76,729	80,092	81,015
Grants to be converted		-5,848	-5,704	-5,704	-5,704
Consolidated net debt after converted prizes	68,665	71,025	74,388	75,312

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Vista Alegre Atlantis, SGPS, S.A. * Public company * Head office: Lugar da Vista Alegre, Ílhavo * Registered with the Commercial Registry of

Ílhavo * Taxpayer no 500 978 654 * Share capital 134,120,048.00 Euros