VAA Vista Alegre Atlantis SGPS : 1st Half Report 2022

INTERIM FINANCIAL REPORTING
1ST SEMESTER OF 2022 (IFRS)	(UNAUDITED)

Interim Financial Report (January to June 2022)

	TABLE OF CONTENTS
INTERIM FINANCIAL REPORTING ....................................................................................................................................................	3
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ........................................................................................................................	6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................................................	11
1.	SEASONALITY OF OPERATIONS ...................................................................................................................................................	11
2.	CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN COMPANIES .....................................................................................................	11
3.	SEGMENT REPORTING..............................................................................................................................................................	11
4.	FINANCIAL INSTRUMENTS BY CLASS .............................................................................................................................................	17
5.	TANGIBLE FIXED ASSETS ...........................................................................................................................................................	19
6.	INTANGIBLE ASSETS.................................................................................................................................................................	20
7.	INVESTMENT PROPERTIES .........................................................................................................................................................	20
8.	FINANCIAL INVESTMENTS .........................................................................................................................................................	21
9.	USE RIGHTS ASSETS AND LEASE LIABILITIES ....................................................................................................................................	22
10.	INCOME TAX .........................................................................................................................................................................	24
11.	INVENTORIES.........................................................................................................................................................................	25
12.	ACCOUNTS RECEIVABLE AND OTHERS...........................................................................................................................................	25
13.	SHARE CAPITAL, TREASURY SHARES, ISSUE PREMIUMS AND OTHER EQUITY ............................................................................................	26
14.	RESERVES AND RETAINED EARNINGS............................................................................................................................................	27
15.	LOANS OBTAINED ...................................................................................................................................................................	27
16.	ACCOUNTS PAYABLE AND OTHER DEBTS .......................................................................................................................................	28
17.	PROVISIONS ..........................................................................................................................................................................	29
18.	STATE AND OTHER PUBLIC ENTITIES .............................................................................................................................................	31
19.	SUBSIDIES.............................................................................................................................................................................	31
20.	REVENUE .............................................................................................................................................................................	31
21.	EMPLOYEE COSTS ...................................................................................................................................................................	32
22.	EXTERNAL SUPPLIES AND SERVICES..............................................................................................................................................	32
23.	OTHER OPERATING INCOME AND EXPENSES ..................................................................................................................................	33
24.	FINANCIAL RESULTS.................................................................................................................................................................	33
25.	COMMITMENTS .....................................................................................................................................................................	34
26.	BALANCES AND TRANSACTIONS WITH RELATED PARTIES ...................................................................................................................	34
27.	SUBSEQUENT EVENTS ..............................................................................................................................................................	36
28.	COMPANIES INCLUDED IN THE CONSOLIDATION..............................................................................................................................	36

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Interim Financial Report (January to June 2022)

Interim Financial Reporting

VAA - Vista Alegre Atlantis SGPS, S.A., hereby presents its accounts for the period from January to June 2022, pursuant to regulation nº 5/2008, in accordance with IAS 34.

These interim financial statements were prepared based on the same accounting policies and calculation methods used in the preparation of the last annual financial statements (2021 financial year).

In this interim financial report, we only release notes which allow us to understand the changes in the financial position and performance of the company since the last annual report.

1. Activity Evolution

The first semester of 2022 was marked not merely by the ongoing impact of the Covid-19 pandemic, but also by an environment of great geopolitical uncertainty, with the invasion of Ukraine by the military forces of the Russian Federation in February. This exacerbated escalating prices in energy (mainly the cost of natural gas), fuel and raw materials.

In the first semester of 2022, Grupo Vista Alegre achieved a turnover of 67.8 million euros and an

EBITDA of 11.2 million euros. Foreign market represented 77.4% of Vista Alegre's turnover, with

52.5 million euros of sales.

The growth of revenues in the earthenware and stoneware segments are worth highlighting, representing an increase of 31% and 45%, respectively, in relation to the sales of the same period of the previous year.

Sales of porcelain reached 21.6 million euros, representing an increase of 25% compared to the previous year.

		T €
	January to	January to	Variation
Segments	June 2022	June 2021	(%)
	Total	Total	Total
Porcelain and related products	21,612	17,265	25%
Earthenware	7,342	5,617	31%
Stoneware	31,832	21,916	45%
Crystal and Glass	7,057	4,788	47%
Total	67,842	49,587	37%

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Interim Financial Report (January to June 2022)

Internationally, we would like to draw attention to the markets of The Netherlands, France, Spain and Germany, the largest contributors to sales of branded products.

2. Results

Grupo Vista Alegre consolidated results for the first semester of 2022 showed positive performance in terms of turnover, reaching 67.8 million euros (36.8% above the same period of 2021) and EBITDA reaching 11.2 million euros.

The recent energy crisis, aggravated by the conflict between Russia and Ukraine, caused a sharp rise in natural gas prices and a strong impact on the cost structure of Vista Alegre, in the order of 485%, compared to 2021, leading to a negative net result in the first semester.

Despite this adverse context, Vista Alegre has managed to mitigate some of this impact, thanks to investments over the last few years to improve efficiency in its processes and through more efficient management of the means of production and resource utilization. In addition, urgent government measures are expected to support the ceramics and glass industries, among the largest consumers of natural gas.

Consolidated Results

				M€
Headings	1S 2022	1S 2021	Var. 1S
Amount	%
Turnover	67.8	49.6	18.3	36.8%
E B I T D A	11.2	8.1	3.1	38.5%
EBITDA Margin	16.5%	16.3%		0.2 pp
Operating Income	2.2	1.8	0.4	23.9%
Operating Margin	3.3%	3.6%		-0.3 pp
Income before taxes	0.1	-0.8	0.9	107%
Income tax	-0.1	0.3
Net income	-0.1	-0.5	0.4	85%

The Grupo recorded a positive operating result of 2.2 million euros and a negative net result of -77 thousand euros.

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Interim Financial Report (January to June 2022)

3. Investments

In the first semester of 2022, investments made in the amount of 2.1 million euros were predominantly investments in replacement and maintenance of equipment.

Ílhavo, 31st of August 2022

The Board of Directors

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