Zignago Vetro S p A : Press Release H1 2022

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 2022 Half-Year Report

Revenues rise sharply in H1 2022, with sales volumes up significantly.

Strong margin recovery in Q2 (EBITDA at 24.1%).

Record EBITDA and net profit, despite inflationary environment.

• Revenues of Euro 299.6 million (+28.6% on Euro 233.0 million in 2021), of which exports account for 30.6%;
• EBITDA of Euro 64.1 million (21.4% margin, +3.5%);
• Net Profit of Euro 31.1 million (10.4% margin, +8.2%).

Operating cash generation, before investments, of Euro 48.3 million (Euro 48.6 million in H1 2021).

Net financial debt of Euro 288.7 million (Euro 274.0 million at 30 June 2021), following an investment outlay of Euro 52.3 million (mainly for new plant) and for dividends of Euro 35.4 million.

Zignago Vetro is strongly committed to the continuous improvement of its sustainability profile and related ESG ratings.

Zignago Vetro Group Key Financial Highlights (*)

	H1	H1	Cge.%
	2022	2021
	(in Euro millions)	(in Euro millions)
Revenues	299.6	233.0		+28.6%
EBITDA	64.1	61.9		+3.5%
EBIT	34.0	34.9		(2.5%)
Operating Profit	36.1	35.4		+1.9%
Profit before taxes	41.4	35.5		+16.7%
Group Net Profit	31.1	28.7		+8.2%

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		30.06.2022	30.06.2021	31.12.2021
		(in Euro millions)	(in Euro millions)	(in Euro millions)
Capital expenditure	44.6	33.8	83.8
Free cash flow
∙	after investments	(6.0)	13.8	48.6
∙	before investments	48.3	48.6	120.0
(further details on page 3)
Financial debt	(386.3)	(342.5)	(381.5)
Liquidity	97.6	68.5	131.0
Net financial debt	(288.7)	(274.0)	(250.5)

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 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 2022 and 2021 and at 31 December 2021, 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, 28 July 2022 - 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 Mr. Nicolò Marzotto, approved the Group 2022 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. The Group is also strongly committed to the recovery and reuse of cullet, and is a leading operator in this sector in Italy. Glass is the only material that is 100% recyclable, infinitely and guaranteeing the new container is always of the same quality.

Zignago Vetro Group operating performance

The Group company markets in H1 2022 saw very strong demand, mainly due to buoyant end- consumption and particularly in Europe for Beverages and Food and in the US and China for Cosmetics and Perfumery - specifically in the "skincare" and "color cosmetic" sectors.

Container supply in Europe however continued to lag demand in the second quarter, partly as a result of the production shutdown at certain plant due to the Russia-Ukraine conflict. The significant pressure on production costs also continued in the quarter - and particularly on energy. This inflationary environment led to consequent increases in sales prices in the period.

Against this backdrop, all Group Companies again returned extremely significant sales growth in Q2, driven mainly by the price effect, with volumes impacted by low levels of inventory. In fact, these sharp major production factor cost rises prompted the Group companies to gradually increase sales prices, which in Q2 - together with the energy cost optimisation and production efficiency measures - allowed for a partial recovery of the margin.

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During the first half of the year, the parent company completed the project to modernise and expand its production capacity to serve all market sectors, with production beginning on the new furnace from July. This startup involved the simultaneous shutdown of an existing plant, which affected product availability at the end of the period. The increased production capacity will however support a recovery from the second half of the year.

The growing demand for glass reflects the increasing focus and appreciation among users, consumers and public opinion in terms of this material as an excellent choice for packaging, in view of its singular characteristics of healthiness, sturdiness, conservation, recyclability and sustainability.

It should be noted that during 2022 the ongoing conflict between Russia and Ukraine did not have a substantial impact on the Group's activities.

In June, Zignago Vetro S.p.A. launched the share buy-back program as per the authorisation granted by the Shareholders' Meeting on 29 April 2022 and in the context of the motion passed by the Company's Board of Directors on 21 June 2022. At 30 June 2022, the number of treasury shares purchased was 60,200, with a countervalue of Euro 0.7 million. As of today's date, Zignago Vetro S.p.A. holds 369,175 treasury shares, equal to 0.42% of the share capital.

Consolidated revenues in the first half of 2022 totalled Euro 299.6 million compared to Euro 233.0 million in the same period of the previous year (+28.6%). Export revenues totalled Euro 90.8 million, comprising 30.6 % of revenues (Euro 70.7 million and 30.4% in H1 2021).

Consolidated EBITDA in the first half of 2022 amounted to Euro 64.1 million, +3.5% on H1 2021 (Euro 61.9 million), with a 21.4% margin (26.6% in H1 2021).

Consolidated EBIT was Euro 34.0 million (compared to Euro 34.9 million in the first half of 2021, -2.5%), with a margin of 11.4% (15.0% in the first half of 2021).

The consolidated Operating profit was Euro 36.1 million in H1 2022, compared to Euro 35.4 million in H1 2021 (+1.9%), with a 12% revenue margin (compared to 15.2%).

Consolidated Profit before taxes was Euro 41.4 million in H1 2022 (Euro 35.5 million in H1 2021, +16.7%), with a margin of 13.8% (15.2%).

Consolidated Profit in the period was Euro 31.1 million, compared to Euro 28.7 million in H1 2021 (+8.2%) - a margin of 10.4% (12.3%).

Group balance sheet and financial position

Group capital expenditure in the first half of 2022 amounted to Euro 44.6 million (Euro 33.8 million in H1 2021). Payments on fixed assets amounted to Euro 52.3 million in H1 2022 (Euro 34.8 million in H1 2021).

The Group generated Free cash flow in H1 2022, before payments for investments and dividends of Euro 48.3 million (Euro 48.6 million in the first half of 2021). Free cash flow, after payments for investments (Euro 52.3 million) and dividends (Euro 35.4 million), of Euro - 6.0 million was absorbed, compared to a generation of Euro 13.8 million in H1 2021.

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The Group net financial debt at 30 June 2022 was Euro 288.7 million, compared to Euro 250.5 million at 31 December 2020 (Euro 274.0 million at 30 June 2021).

Group liquidity totalled Euro 97.6 million at 30 June 2022, compared to Euro 131.0 million at the end of 2020 and Euro 68.5 million at 30 June 2021.

Outlook and subsequent events.

On the basis of the information available, glass container demand over the coming quarters is expected to remain at good levels, on all the main sectors in which Group companies operate, confirming the assumptions supporting the consolidated development trajectory that the glass container market has historically shown and that appears increasingly robust due to the growing appreciation of glass among users and consumers.

Significant uncertainty still surrounds the fluctuating costs of the main production factors - particularly of energy - with possible impacts on the margin and the need for fresh sales price increases.

In light of these developments, the Group companies are taking all necessary actions in order to contain the impact of these inflationary pressures as much as possible. The modernisation and expansion of production capacity outlined above will supply greater quantities of product to satisfy the robust container demand and creates a significantly more efficient industrial entity, particularly from an energy perspective.

Despite the economic difficulties, the medium/long-term outlook for the glass container sector, and for the Group in particular, remains unchanged and positive.

There were no significant events after 30 June 2022.

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Other Motions

Today's Board of Directors' meeting of Zignago Vetro Spa also approved the 2022-2024 Performance Shares Plan, the Prospectus of which is already available at the Company's registered office, at the Company's website at www.zignagovetro.com, Investors section, and on the authorised storage mechanism 1Info at www.1info.it.

In this regard, the Prospectus identified the following parameters as the performance objectives of the Plan:

1. three targets related to the Zignago Vetro Group's operating-financial performance over the medium to long term, with a combined weighting of 75% (Revenues 25%, EBITDA 25%, ROI 25%);
2. three targets related to ESG issues with a total weighting of 25% - understood as maintenance or improvement of the current rating - (Ecovadis rating 9%, Sustainalytics rating 8%, MSCI rating 8%).
   Finally, it is recalled that the Board of Directors of Zignago Vetro S.p.A., at its meeting of 21 June 2022, in the context of the approval of the 2022 - 2024 Business Plan, identified the quantitative operating-financial targets related to the afore-mentioned Performance Share Plan targets.

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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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2022 Half-Year Report

The 2022 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 at www.zignagovetro.com, and at the authorised storage mechanism 1Info at www.1info.it.

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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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