Zignago Vetro S p A : PR 1H 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 2021 Half-Year Report

Revenues and results significantly up in H1 2021 - outperforming H1 2019 (pre-COVID-19).

• Revenues of Euro 233.0 million (+18.6% on Euro 196.4 million in 2020), of which exports account for 30.4%;
• EBITDA of Euro 61.9 million, 26.6% margin (+26.7% on Euro 48.9 million, 24.9% margin in H1 2020);
• EBIT of Euro 34.9 million, 15.0% margin (+59.4% on Euro 21.9 million, 11.2% margin in H1 2020);
• Group Profit of Euro 28.7 million, 12.3% margin (+105.5% on Euro 14 million, 7.1% margin in H1 2020).

Cash generation, before investments, of Euro 48.6 million (Euro 43.4 million in H1 2020).

Net financial debt of Euro 274.0 million (Euro 266.8 million at 30 June 2020). General improvement of sustainability indicators (ESG).

Zignago Vetro Group Key Financial Highlights (*)

	H1	H1		Cge.%	H1
	2021	2020			2019
	(in Euro millions)	(in Euro millions)		(in Euro millions)
Revenues	233.0	196.4	+	18.6%	209.7
EBITDA	61.9	48.9	+	26.7%	56.3
EBIT	34.9	21.9	+	59.4%	30.7
Operating Profit	35.4	22.1	+	60.1%	30.9
Profit before taxes	35.5	18.8	+	89.2%	29.7
Group Profit	28.7	14.0	+ 105.5%	22.4

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		30.06.2021	30.06.2020	31.12.2020
		(in Euro millions)	(in Euro millions)	(in Euro millions)
Capital expenditure	33.8	15.0	42.7
Free cash flow
∙	after investments	13.8	22.3	49.8
∙	before investments	48.6	43.4	93.2
(further details on page 3)
Financial debt	(342.5)	(321.2)	(308.7)
Liquidity	68.5	54.4	51.5
Net financial debt	(274.0)	(266.8)	(257.2)

(*)

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 are not consolidated under the proportional method, but rather are recognised in the consolidated financial statements at equity.

The income statement, the statement of comprehensive income, the statement of financial position and the statement of cash flows of the Zignago Vetro Group at 30 June 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 3, 4, 5, 6 and 7 of this press release.

Fossalta di Portogruaro, 29 July 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 Group 2021 Half-YearReport.

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.

Zignago Vetro Group operating performance

The first half of the year saw a modest market recovery, which had emerged in the second half of 2020 and strengthened in Q2 2021.

Although differing among the various market segments and partly impacted by fears of an incomplete resolution of the pandemic, the recovery appeared however to encompass a broad range of product categories - from those mostly carried by the major retail chains - already seeing a recovery in H2 2020 - to Perfumery, the hardest hit segment which now appears to be on the path to recovery.

Against this backdrop, the Group - thanks to the flexibility and commitment of its workers, both individually and collectively and at all levels - has been able to significantly boost business volumes, not only against Q2 2020 (+40.8%), but also Q1 2021 (+11.8%), returning record quarterly and half-year results not only in terms of sales volumes, but also earnings. This development was reported by all business units.

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Although against the current economic climate, glass continues to prove to be an ever-more appreciated material among users and consumers for its features of healthiness, sturdiness, conservability and recyclability.

Again in Q2 2021, all Group companies continued to operate as normal, with results improving. All appropriate prevention and protection measures against the ongoing emergency remain in place. Again in the second quarter, there were no significant impacts from the COVID-19 outbreak.

Consolidated revenues in the first half of 2021 totalled Euro 233.0 million compared to Euro 196.4 million in the same period of the previous year (+18.6%). Export revenues totalled Euro 70.7 million, comprising 30.4% of revenues (Euro 62.3 million and 31.7% in H1 2020).

Consolidated EBITDA in the first half of 2021 amounted to Euro 61.9 million, +26.7% on H1 2020 (Euro 48.9 million), with a 26.6% margin (24.9% in H1 2020).

Consolidated EBIT was Euro 34.9 million (compared to Euro 21.9 million in the first half of 2020, +59.4%), with a margin of 15.0% (11.2% in the first half of 2020).

The consolidated Operating profit was Euro 35.4 million in H1 2021, compared to Euro 22.1 million in H1 2020 (+60.1%), with a 15.2% revenue margin (compared to 11.3%).

Consolidated Profit before taxes was Euro 35.5 million in H1 2021 (Euro 18.8 million in H1 2020, +89.2%), with a margin of 15.2% (9.6%).

Consolidated Profit in the first half of 2021 amounted to Euro 28.7 million, compared to Euro 14.0 million in H1 2020 (+105.5%) - a margin of 12.3% (7.1% in H1 2020).

Group balance sheet and financial position

Group capital expenditure in the first half of 2021 amounted to Euro 33.8 million (Euro 15.0 million in H1 2020). Payments on fixed assets amounted to Euro 35.1 million in H1 2021 (Euro 21.0 million in H1 2020).

The Group generated Free cash flow in H1 2021, before payments on fixed assets, of Euro 48.6 million (Euro 43.4 million in the first half of 2020). Free cash flow, after payments on fixed assets and dividends of Euro 31.6 million, of Euro 13.8 million was generated, compared to Euro 22.3 million in H1 2020.

The Group net financial debt at 30 June 2021 was Euro 274.0 million, compared to Euro 257.2 million at 31 December 2020 (Euro 266.8 million at 30 June 2020).

Group liquidity totalled Euro 68.5 million at 30 June 2021, compared to Euro 51.5 million at the end of 2020 and Euro 54.4 million at 30 June 2020.

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Outlook and subsequent events.

On the basis of market indications emerging over recent months and the backlogs of the various Group companies, the strong performance reported in the first half of the year is expected to continue over the coming quarters.

The Group also, as already demonstrated, expects that it can handle the effects of any new restrictions related to the still ongoing COVID-19 pandemic.

There were no significant events after 30 June 2021.

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Approval of the new Engagement Policy Regulation.

The Board of Directors approved the Engagement Policy Regulation which will enter into force on September 1, 2021.

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Declaration

The Executive Responsible for Financial Reporting, Mr. Roberto Celot, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the underlying accounting documents, records and accounting entries.

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2021 Half-Year Report

The 2021 Half-Year Report will be made available to the public as soon as available and in accordance with law at the registered office of the company and on the company website www.zignagovetro.com

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This press release is available on the website: www. zignagovetro.com

For further information:

Roberto Celot

Chief Financial Officer &

Investor relations manager

Zignago Vetro S.p.A.

[e-mail]

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All the figures in the Consolidated Reclassified Income Statement and Statement of Financial Position (attachments 1 and 2) reported below were prepared on the basis of management's view which considers the proportional consolidation of joint ventures appropriate, in line with the approach taken 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 are not consolidated under the proportional method, but rather are recognised in the consolidated financial statements at equity.

The statement of financial position, the income statement, the statement of comprehensive income and the statement of cash flows of the Zignago Vetro Group at 30 June 2021 and 31 December and 30 June 2020 and the statement of changes in Equity, prepared in accordance with the accounting standards in force from 1 January 2014, are reported respectively in the subsequent attachments 3, 4, 5, 6 and 7.

ATTACHMENT 1

Zignago Vetro Group

Reclassified Consolidated Income Statement (unaudited)

(management point of view, based on accounting standards in force at 31 December 2013)

			H1 2021				H1 2020		Changes
	Euro thou.	%		Euro thou.	%	%
Revenues	233,010	100.0%	196,427	100.0%	18.6%
Changes in finished and semi-finished
products and work in progress	(2,785)	(1.2%)	9,396	4.8%		n.a.
Internal production of fixed assets and
contributions on investments	506		0.2%		828		0.4%		(38.9%)
Value of production	230,731	99.0%	206,651	105.2%	11.7%
Cost of goods and services	(121,200)		(52.0%)		(112,110)		(57.1%)		8.1%
Value added	109,531	47.0%	94,541	48.1%	15.9%
Personnel expense	(47,587)		(20.4%)		(45,641)		(23.2%)		4.3%
EBITDA	61,944	26.6%	48,900	24.9%	26.7%
Amortisation & depreciation	(26,522)	(11.4%)	(26,361)	(13.4%)	0.6%
Accruals to provisions	(488)		(0.2%)		(627)		(0.3%)		(22.2%)
EBIT	34,934	15.0%	21,912	11.2%	59.4%
Net recurring non-operating income	468		0.2%		197		0.1%		137.6%
Operating Profit	35,402	15.2%	22,109	11.3%	60.1%
Net financial expense	(658)	(0.3%)	(1,476)	(0.8%)	(55.4%)
Net exchange rate gains/(losses)	762		0.3%		(1,868)		(1.0%)		n.a.
Profit before taxes	35,506	15.2%	18,765	9.6%	89.2%
Income taxes	(6,753)	(2.9%)	(4,831)	(2.5%)	39.8%
(Tax-rate H1 2021: 19%)
(Tax-rate H1 2020: 25.7%)
(Profit) Loss non-con. int.	(12)		---		52		---		n.a.
Profit for the period	28,741	12.3%	13,986	7.1%	105.5%

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