PR 3Q 2021

PRESS RELEASE

In accordance with Consob Resolution 11971/99 and subsequent

amendments and supplements

ZIGNAGO VETRO S.P.A.

Board of Directors of Zignago Vetro S.p.A. approves the 2021 Third Quarter Report

Zignago Vetro Group revenue growth and significantly improved results continue in 9M 2021: strong 2019 (pre-COVID-19) levels and performances surpassed

• Revenues of Euro 354.1 million (+17.2% on 2020), of which exports account for 30.2%. Q3 2021 revenues up on Q3 2020 (+14.5%).
• EBITDA of Euro 95.5 million (27% margin, +23.5%). In Q3 2021 amounting to Euro 35.5 million (27.7% revenue margin, +18.0% on Q3 2020).
• EBIT of Euro 54.6 million (15.4% margin, + 49.4%).
• Group Profit of Euro 43.8 million (12.4% margin, +80.0%).
  In Q3 2021 totalling Euro 15.1 million (12.5% revenue margin, +45.6% on Q3 2020).

Cash generation, before investments, of Euro 86.9 million (24.5% of revenues). In Q3 2021 amounting to Euro 38.3 million (31.6% revenue margin, +18.3% on Q3 2020).

Net financial debt of Euro 261.0 million (Euro 255.9 million at 30 September 2020).

Sustainability indicators (ESG) generally improving and close to the targets set for 2021

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Fossalta di Portogruaro, 5 November 2021 - The Board of Directors of Zignago Vetro S.p.A - a company listed on the STAR segment of the Italian Stock Exchange - in a meeting held today chaired by Paolo Giacobbo, approved the Interim Report at 30 September 2021.

Company profile

The Zignago Vetro Group companies produce high quality glass containers for the Food and Beverage, Cosmetics and Perfumery industries and Speciality Glass bottles for wines and spirits, for the domestic and international markets. The Group is also engaged in other sectors offering synergies with its core business - particularly the collection and treatment of raw glass for subsequent reuse.

9M 2021 Zignago Vetro Group Operating Performance

All markets on which the Group companies operate in the first nine months featured robust demand.

In particular, their strength and ability to rebound was evident in Q3 2021, thanks also to the gradual lifting of government restrictions, which facilitated a return to social interaction, thereby benefitting beverage and food consumption, particularly on the Ho.Re.Ca. channel - both in Italy and overseas - and of cosmetics and perfumery. In the latter sector, on which the pandemic has had the most long-lasting effects, the luxury goods segments also saw a strong rebound, partly due to the re-stocking along the supply chain.

The glass container segment is benefiting from the increasing focus among users, consumers and public opinion on glass as an excellent packaging material for its characteristics of healthiness, sturdiness, conservation, recyclability and sustainability.

Against this backdrop, the Group reported in the third quarter a further sharp rise in turnover, with the various segments outperforming growth estimates, alongside good margins and despite the irregular inflationary patterns on the markets over recent months.

In order to cope with forecast demand levels and the consequent production requirements, capex continued to be rolled out to expand capacity, which is expected to come on stream by the middle of next year.

Furthermore, during the quarter construction of the plant of the subsidiary Julia Vitrum plant was completed, with operations starting up in September. The facility significantly boosts the capacity to recycle and reuse raw glass from separated waste collection. With this new plant, the Zignago Vetro Group is one of the leaders in the recovery and reuse of raw glass in Italy, with a presence in the North-East, the Centre and the South of the country, and with almost total reuse of raw glass at the glass plant located nearby - thus putting in place a real and true circular and sustainable economy project.

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Again in Q3 2021, all Group companies continued to operate as normal, with results improving, although logistical problems worsened in the period across all segments, with difficulties particularly in terms of sourcing containers and carriers.

All appropriate prevention and protection measures against the ongoing emergency remain in place. Again in the third quarter, there were no significant impacts from the COVID-19 outbreak.

Zignago Vetro Group 9M Key Financial Highlights(*)

	9M 2021	9M 2020	Cge. %	9M 2019	Cge.%
	(in Euro millions)	(in Euro millions)	2021/2020	(in Euro millions)	2021/2019
Revenues	354.1	302.2	+ 17.2%	315.4	+ 12.3%
EBITDA	95.5	77.3	+ 23.5%	87.7	+ 8.9%
EBIT	54.6	36.6	+ 49.4%	48.8	+ 11.9%
Operating Profit	55.3	36.7	+ 50.6%	49.0	+ 12.9%
Profit before taxes	54.4	32.1	+ 69.3 %	46.3	+ 17.5%
Group Profit	43.8	24.3	+ 80.0%	35.6	+ 23.0%

	9M 2021	9M 2020
(in Euro millions)(in Euro millions)
Free cash flow (before investments)	86.9	61.8
Payments on investments	(59.9)	(28.5)
Free cash flow net	27.0	33.3
(further details on page 4)
	30.09.2021	30.09.2020
(in Euro millions)(in Euro millions)
Financial debt	(330.0)	(318.4)
Liquidity	69.0	62.5
Net financial debt	(261.0)	(255.9)

1. The figures and the subsequent comments concerning the consolidated figures were based on the management view of the Group business, which provides for the proportional consolidation of the joint venture, in continuity with the accounting policies adopted until 31 December 2013. Following the entry into force of the new "IFRS 11 - Joint Arrangements" and "IAS 28 - Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method, as is the case for Julia Vitrum SpA from 31 December 2019, and should be recognised in the consolidated financial statements at equity.
   The income statement, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the statement of changes in equity of the Zignago Vetro Group at 30 September 2021 and 2020 and at 31 December 2020, prepared according to international accounting standards in force from 1 January 2014, are reported respectively at attachments 4, 5, 6, 7 and 8 of this press release.

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Consolidated Revenues in the first nine months of 2021 amounted to Euro 354.1 million compared to Euro 302.2 million in the same period of the previous year (+17.2%). Export sales in the January-September 2021 period amounted to Euro

106.8 million, 30.2% of revenues (up 15.8% on Euro 92.2 million in the first nine months of 2020: 30.5% of revenues).

Consolidated EBITDA in 9M 2021 amounted to Euro 95.5 million, up 23.5% on 9M 2020 (Euro 77.3 million), with a margin of 27.0% (25.6% in 9M 2020).

Consolidated EBIT in the first nine months was Euro 54.6 million (up 49.4% compared to Euro 36.6 million in 2020), with a margin of 15.4% (12.1% in 9M 2020).

The Group profit in the first nine months of 2021 was Euro 43.8 million, compared to Euro 24.3 million in the first nine months of 2020 (+80.0%) - a margin of 12.4% (8.1% in 9M 2020).

Net capital expenditure in the first nine months 2021 by Group companies totalled Euro 59.9 million (Euro 23.7 million in 9M 2020). Payments on fixed assets totalled Euro 59.9 million in 9M 2021, compared to Euro 28.5 million in 9M 2020.

The Group generated Free cash flow in the period, before payments on fixed assets, of Euro 86.9 million (Euro 61.8 million in the first nine months of 2020); after payments on fixed assets for Euro 59.9 million and dividends of Euro 31.6 million, the free cash flow was +Euro 27.0 million, compared to +Euro 33.3 million at 30 September 2020.

The Group net financial debt at 30 September 2021 was Euro 261.0 million, compared to Euro 257.2 million at 31 December 2020 (Euro 255.9 million at 30 September 2020). The net debt reduced Euro 13.0 million in the third quarter of 2021.

Group liquidity at 30 September 2021 was Euro 69.0 million, compared to Euro

62.5 million at 30 September 2020 and Euro 51.5 million at 31 December 2020.

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Zignago Vetro Group Q3 Key Financial Highlights

	Q3 2021	Q3 2020	Cge.
	(in Euro millions)	(in Euro millions)	%
Revenues	121.1	105.8	+ 14.5%
EBITDA	33.5	28.4	+ 18.0%
EBIT	19.7	14.7	+ 34.4%
Operating Profit	19.9	14.6	+ 36.1%
Profit before taxes	18.9	13.4	+ 41.3%
Group Profit	15.1	10.4	+ 45.6%

Consolidated revenues in the third quarter of 2021 amounted to Euro 121.1 million, +14.5% compared to Euro 105.8 million in the same period of the previous year. Export sales amounted to Euro 36.1 million (Euro 30.0 million in 2020: +20.4%).

Consolidated EBITDA in the third quarter of 2021 totalled Euro 33.5 million, up 18.0% on the same period in the previous year (Euro 28.4 million). The EBITDA margin was 27.7% (26.9% in the third quarter of 2020).

Consolidated EBIT amounted to Euro 19.7 million (+34.4% compared to Euro 14.7 million in the third quarter of 2020), with a margin of 16.3% (compared to 13.9%).

The profit for the quarter increased 45.6% on the preceding quarter.

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Outlook

The growing confidence among operators and the ever-increasing appreciation of glass among users and consumers are factors which further support the consolidated development of the glass container market.

On the basis of market indications emerging over recent months and the backlogs of the various Group companies, the strong performance to date is expected to continue in the fourth quarter, despite a number of difficulties on the logistics chain.

Irregular inflationary patterns over recent months may continue to condition the markets in the near future, inevitably leading to sales price adjustments.

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