VAA Vista Alegre Atlantis SGPS : 3rd Quarter Report 2021

Interim Financial Reporting

3rd quarter of

2021

(IFRS)

(Unaudited)

INTERIM FINANCIAL REPORT (January to September 2021)

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

2/33

INTERIM FINANCIAL REPORT (January to September 2021)

Interim Financial Reporting

VAA - Vista Alegre Atlantis SGPS, S.S., hereby presents its accounts for the period from January to September 2021, 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 (2020 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

In the third quarter of 2021, in a context of stabilising the social, economic and financial impacts of COVID-19, the results of Grupo Vista Alegre showed a remarkable capacity for recovery, compared with the second quarter.

Turnover in the first nine months of 2021 was 80.0 million euros, an increase of 5.6% compared to the same period in the previous year. The weight of foreign markets maintained its upward trend,

reaching 64.7 million euros, representing 80.8% of the Grupo Vista Alegre's turnover.

Consolidated Sales per Segment and per Markets

								T €
		January to September 2021		January to September 2020
Segments
		DM	FM	Total		DM	FM	Total
Porcelain and related products		9,369	18,063	27,432	7,619	10,810	18,429
Earthenware		3,048	5,595	8,643	2,529	3,059	5,589
Stoneware		954	35,305	36,259	1,263	42,532	43,795
Crystal and Glass		2,026	5,687	7,713	1,968	6,044	8,012
Total	15,397	64,650	80,047	13,379	62,446	75,825

The turnover of Grupo Vista Alegre has been recovering in a steady and sustainable way, reaching 30.5 million euros in the third quarter.

The Retail channel maintained good performance during the third quarter, achieving sales of 7 million euros, up from 5.5 million euros in the same period of 2020. In cumulative terms, the Online channel continues to grow and recorded 68% higher sales compared to the same period last year.

3/33

INTERIM FINANCIAL REPORT (January to September 2021)

2. Results

Despite closing the brand's shops for much of this period, Grupo Vista Alegre's consolidated results for the first nine months of 2021 showed a stronger performance than in the same period of the previous year, with turnover reaching 80 million euros (6% up on the same period of 2020) and EBITDA standing at 14.7 million euros (representing a 44% improvement on the EBITDA achieved in the same period of 2020). The EBITDA Margin recovered further in this last quarter reaching 21.7%,

0.4 pp higher than in 2019, the pre-pandemic year, confirming Vista Alegre's excellent economic recovery.

Consolidated Results

								M€
Headings	1Q 2021	2Q 2021	3Q 2021	9M 2021	3Q 2020	9M 2020	Variation 9M
Value	%
Turnover	19.0	30.6	30.5	80.0	33.2	75.8	4.2	5.6%
E B I T D A	1.2	6.9	6.6	14.7	6.1	10.2	4.5	44.1%
EBITDA Margin	6.2%	22.6%	21.7%	18.4%	18.5%	13.5%		4.9 %
Operating Income	-2.1	3.8	3.5	5.3	3.1	1.0	4.3	410%
Operating Margin	-10.8%	12.6%	11.5%	6.6%	9.2%	1.4%		5.2 %
Income before taxes	-3.4	2.6	2.2	1.4	1.7	-2.9	4.3	148%
Income tax	1.1	-0.8	-1.1	-0.8	-0.7	0.6
Net income	-2.3	1.8	1.1	0.6	1.0	-2.4	3.0	127%
Investment				3.7		3.3	0.4	12.1%

The company recorded a positive operating result of 5.3 million euros (exceeding the operating result of the same period the year before by 410%) and a positive net result of 0.6 million euros, contrasting with the negative result recorded in 2020 in the same period (a net loss of 2.4 million euros).

Grupo Vista Alegre is positive about the performance outlook of its business, given the level of orders in hand and the progressive increase in the level of confidence of the public, in part the result of growing rates of vaccination and the resulting recovery in retail traffic and commercial activity.

3. Investments

Grupo Vista Alegre's investments until the third quarter rose to 3.7 million euros. The purpose of this investment was related essentially to maintaining and replacing equipment, with a view to modernising, improving energy efficiency, updating packaging lines and consequently increasing productivity.

Ílhavo, 30th of November 2021

The Board of Directors

________________________________________________

4/33

INTERIM FINANCIAL REPORT (January to September 2021)

Net income for the financial year

Consolidated Statements of Financial Position on the 30th of September 2021 and 31st of December 2020

				T €
	Notes	30-09-2021	31-12-2020
ASSETS
Non-current assets
Tangible fixed assets	5	129,835	134,050
Goodwill		4,711	4,711
Investment properties	7	938	930
Intangible Assets	6	2,145	1,621
Financial investments	8	683	683
Use rights assets	9	6,591	7,506
Deferred taxes	10		4,926	4,896
Total non-current assets		149,828	154,397
Current assets
Inventories	11	44,369	43,008
Accounts receivable and others	12	17,592	13,214
State and other public entities	18	547	1,353
Cash and cash equivalents			15,638	17,501
Total current assets			78,147	75,077
TOTAL ASSETS			227,975	229,473

SHARE CAPITAL
Equity	13
Treasury capital	13
Issue premiums	13
Supplementary benefits	13
Reserves and retained earnings	14
Net income for the financial year
Equity excluding non-controlling interests
Non-controlling interests
Total equity
LIABILITIES
Non-current liabilities
Loans obtained	15
Subsidies	19
Lease liabilities	9
Provisions	17
Provisions f	or pensions	17
Deferred taxes	10
Total non-current assets
Current liabilities

134,120 134,120

-2-2

24,280 24,280

38,182 38,182

-131,672-128,785

629 -2,507

65,537 65,288

1,103 1,107

66,640 66,395

85,726 77,366

6,338 6,663

4,770 5,349

238 238

1,046 1,138

8,922 8,778

107,040 99,532

	Loans obtained	15	17,591	20,562
	Lease liabilities	9	2,315	2,475
	Accounts payable and other debts	16	33,220	38,935
	State and other public entities	18		1,169	1,574
	Total non-current assets			54,295	63,546
	Total liabilities			161,335	163,078
	TOTAL EQUITY AND LIABILITIES		227,975	229,473

5/33