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Saes Getters

Earnings Release May 13, 2021

4297_rns_2021-05-13_a2f22eed-702a-4ec0-9745-0331e39de0ba.pdf

Earnings Release

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The present is the English translation of the Italian official report. For any difference between the two texts, the Italian text shall prevail.

SAES GETTERS S.p.A.

Capital Stock Euro 12,220,000 fully paid-in Address of Principal Executive Offices: Viale Italia, 77 – 20045 Lainate (Milan), Italy Registered with the Milan Court Companies Register no. 00774910152

Additional periodic financial information as at March 31, 2021

HIGHLIGHTS OF THE FIRST QUARTER OF 2021

In the first quarter of 2021 the SAES® Group achieved consolidated net revenues equal to €41 million, compared to €49.3 million in the corresponding quarter of 2020.

However, the comparison is not significant, due to the still limited impact of the Covid-19 crisis on the revenues of 1Q 2020, as well as the negative exchange rate effect. Excluding the latter (-5.4%), the Group recorded an organic decrease in revenues equal to -11.3%, distributed in all the Divisions, with the exception of the Vacuum Technology Division (vacuum systems), favored by the recovery of investments in the sector of particle accelerators. The most significant organic decreases in absolute term were recorded in the following businesses: in the Nitinol sector (Medical Division), penalized by the postponement of elective therapies, due to the persistence of the pandemic; in that of shape memory alloys for industrial applications (Metallurgy Division), due to US-China tensions; in the Specialty Chemicals Division, due to supply advances in the first quarter of 2020, to secure stocks in anticipation of Covid-19. In the Advanced Packaging Division, the decrease was exclusively attributable to the phase-out of the more traditional metallized products, completed only at the end of the first half of 2020. Business 1Q 2021 1Q 2020

compared to €49.3 million in the corresponding quarter of 2020.
However, the comparison is not significant, due to the still limited impact of the Covid-19 crisis on the revenues
of 1Q 2020, as well as the negative exchange rate effect. Excluding the latter (-5.4%), the Group recorded an
organic decrease in revenues equal to -11.3%, distributed in all the Divisions, with the exception of the Vacuum
Technology Division (vacuum systems), favored by the recovery of investments in the sector of particle
accelerators. The most significant organic decreases in absolute term were recorded in the following businesses:
in the Nitinol sector (Medical Division), penalized by the postponement of elective therapies, due to the
persistence of the pandemic; in that of shape memory alloys for industrial applications (Metallurgy Division),
due to US-China tensions; in the Specialty Chemicals Division, due to supply advances in the first quarter of
2020, to secure stocks in anticipation of Covid-19. In the Advanced Packaging Division, the decrease was
exclusively attributable to the phase-out of the more traditional metallized products, completed only at the end of
the first half of 2020.
Thousands of euro (except %)
Total Organic Exchange
difference change rate
(%) (%) effect
(%)
Security & Defense 4,290 4,608 -6.9% -0.3% -6.6%
Electronic Devices 3,421 4,168 -17.9% -14.2% -3.7%
Healthcare Diagnostics 1,219 1,665 -26.8% -23.9% -2.9%
Lamps 829 1,053 -21.3% -18.3% -3.0%
Thermal Insulated Devices 931 962 -3.2% 3.8% -7.0%
Sintered Components for Electronic Devices & Lasers 1,900 2,073 -8.3% 0.2% -8.5%
SMA Industrial 2,846 3,875 -26.6% -24.2% -2.4%
Metallurgy Division 15,436 18,404 -16.1% -11.3% -4.8%
Solutions for Vacuum Systems 3,182 2,442 30.3% 34.3% -4.0%
Vacuum Technology Division 3,182 2,442 30.3% 34.3% -4.0%
Nitinol for Medical Devices 17,985 21,579 -16.7% -15.0% -1.7%
Medical Division 17,985 21,579 -16.7% -15.0% -1.7%
Functional Dispensable Products 2,736 4,275 -36.0% -35.0% -1.0%
2,736 4,275 -36.0% -35.0% -1.0%
Specialty Chemicals Division 2,585 -34.3% -34.3% 0.0%
Advanced Coatings 1,699
Advanced Packaging Division 1,699 2,585 -34.3% -34.3% 0.0%

In the comparison between the first quarter of 2021 and the fourth quarter of 2020 (net revenues up by 1.1%), please note the penalizing effect of exchange rates (-0.8%), net of which the organic growth was equal to +1.9% (€0.7 million in absolute terms).

Compared to the fourth quarter of 2020, most of the Divisions recorded growing revenues. The greatest increases in absolute terms occurred in the Medical Division (organic growth of +6.8%), which further consolidated the signals of recovery in the final market, already evident at the end of 2020, and in the Advanced Packaging Division whose net revenues, exclusively denominated in euro, substantially doubled (+91.5%), mainly thanks to the first orders of new lacquered products sampled in 2020 and to the fact that the fourth quarter usually records some physiological lower sales compared to other periods of the year. Within the Metallurgy Division (organic growth equal to +4.5%), please note the organic growth of the Industrial SMA sector (+17.1%), thanks to the recovery of the demand in the luxury sector, against a substantial stability of the other markets. Also the medical diagnostics sector (Healthcare Diagnostics) recorded a strong organic growth (+47.6%), thanks to the restoration of orders at standard levels, after the decrease in the second half of 2020 due to stock advances in the first part of the year. In the Sintered Components for Electronic Devices & Lasers sector the organic growth compared to the fourth quarter 2020 (+17.7%) was mainly due to the increase in sales of heat sinks for lasers (defense application), while in the thermal insulation sector (Thermal Insulated Devices) the organic growth (+21.6%) was due to the recovery, driven by the Chinese market, of the demand in the vacuum bottles market, after the sharp slowdown in 2020 due to the Covid-19 crisis. Finally, please note a slight economic recovery in the lamp sector (Lamps). Business 1Q 2021 4Q 2020

(defense application), while in the thermal insulation sector (Thermal Insulated Devices) the organic growth
(+21.6%) was due to the recovery, driven by the Chinese market, of the demand in the vacuum bottles market,
after the sharp slowdown in 2020 due to the Covid-19 crisis. Finally, please note a slight economic recovery in
the lamp sector (Lamps).
Still within the Metallurgy Division, the security and defense sector (Security & Defense) showed a substantial
stability (organic decrease equal to -2.1%), while the Electronic Devices sector was down (organic decrease
equal to -15.3%), due to the saturation of the thermo-scanner market.
In the first quarter of the current year, compared to the fourth quarter of 2020, the Vacuum Technology
Division (organic decrease of -22.1%) and the Specialty Chemicals Division (organic decrease of -27%) were
down: both Divisions were penalized compared to a fourth quarter recording exceptionally high sales (the
former, in both analytical instrumentation and particle accelerators; the latter, in consumer electronics
applications).
Thousands of euro (except %)
Total
difference
(%)
Organic
change
(%)
Exchange rate
effect
(%)
Security & Defense 4,290 4,418 -2.9% -2.1% -0.8%
Electronic Devices 3,421 4,056 -15.7% -15.3% -0.4%
Healthcare Diagnostics 1,219 830 46.9% 47.6% -0.7%
Lamps 829 719 15.3% 15.9% -0.6%
Thermal Insulated Devices 931 777 19.8% 21.6% -1.8%
Sintered Components for Electronic Devices & Lasers 1,900 1,631 16.5% 17.7% -1.2%
SMA Industrial 2,846 2,438 16.7% 17.1% -0.4%
Metallurgy Division 15,436 14,869 3.8% 4.5% -0.7%
Solutions for Vacuum Systems 3,182 4,108 -22.5% -22.1% -0.4%
Vacuum Technology Division 3,182 4,108 -22.5% -22.1% -0.4%
Nitinol for Medical Devices 17,985 16,992 5.8% 6.8% -1.0%
Medical Division 17,985 16,992 5.8% 6.8% -1.0%
Functional Dispensable Products 2,736 3,751 -27.1% -27.0% -0.1%
Specialty Chemicals Division 2,736 3,751 -27.1% -27.0% -0.1%
Advanced Coatings 1,699 887 91.5% 91.5% 0.0%
Advanced Packaging Division 1,699 887 91.5% 91.5% 0.0%
Total Net Sales 41,038 40,607 1.1% 1.9% -0.8%

1 Calculated as the difference between net sales and industrial costs directly and indirectly attributable to the products sold.

2 Calculated as the ratio between gross profit and consolidated revenues.

Compared to the fourth quarter of 2020, gross profit and gross margin were stable (€15.9 million and 39.1% in the last quarter of 2020). In particular, please note that the increase in margins in the Metallurgy Division (thanks to increased economies of scale) and in the Advanced Packaging and Specialty Chemicals Divisions (different product mix) offset the decrease in the Medical Division (production inefficiencies due to the duplication of the tube department in Bethel) and in the Vacuum Technology Division (as a consequence of lower sales).

Consolidated operating income amounted to €2.2 million (5.5% of revenues) in the first quarter of 2021, compared to an operating income of €6.8 million (13.9% of revenues) in the first quarter of the previous year: also in this case the two figures are not comparable as the decrease was exclusively due to the different impact of Covid-19 on the sales in the two periods.

However, compared to the fourth quarter of 2020, both the operating income and the operating margin were stable (€2.3 million and 5.6% in the last quarter of 2020).

Consolidated EBITDA3 was equal to €5 million (12.2% of revenues), decreased when compared to €9.4 million (19% of revenues) in the corresponding quarter of 2020, but equal to that of the fourth quarter of 2020, both in absolute and in percentage terms.

Consolidated net income of the first quarter of 2021 was positive and equal to €1.4 million and included the positive result of the financial management equal to +€0.3 million. Instead the corresponding period of 2020, despite a much higher operating income, ended with a loss (-€5.1 million) because it was penalized by the decrease (-€10.3 million) of the fair value of the securities portfolio, due to Covid-19.

Please note that in the fourth quarter of 2020 consolidated net income was equal to €1.7 million.

The consolidated net financial position was positive and equal to €92.4 million as at March 31, 2021 and compares with a positive net financial position equal to €95.7 million as at December 31, 2020. The decrease was mainly attributable to the increase in the net working capital, mainly due to higher trade receivables (as a result of higher sales in the Medical Division and in the Advanced Packaging one in the first quarter of 2021) and to the increase in inventory (in anticipation of higher sales in the months to come). Finally, please note a capex equal to -€3.1 million.

The quarter started below expectations, but starting from March the first signs of recovery appeared and they will gradually consolidate in the months to come.

3 EBITDA is not deemed as an accounting measure under International Financial Reporting Standards (IFRSs); however, we believe that EBITDA is an important parameter for measuring the Group's performance and therefore it is presented as an alternative indicator. Since its calculation is not regulated by applicable accounting standards, the method applied by the Group may not be homogeneous with the ones adopted by other Groups. EBITDA is calculated as "Earnings before interests, taxes, depreciation and amortization".

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of profit or loss

SAES Group – Additional periodic financial information as at March 31, 2021
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated statement of profit or loss
Thousands of euro
1Q 2021 1Q 2020
Total net sales 41,038 49,285
Cost of sales (25,123) (28,927)
Gross profit 15,915 20,358
R&D expenses (2,828) (2,574)
Selling expenses (2,911) (3,035)
G&A expenses (7,881) (7,312)
Total operating expenses (13,620) (12,921)
Other income (expenses), net (57) (596)
Operating income (loss) 2,238 6,841
Interest and other financial income, net 491 (10,246)
Write-down of financial receivables and other financial assets (168) (120)
Income (loss) from equity method evalueted companies 2 (571)
Foreign exchange gains (losses), net (73) 41
Income (loss) before taxes 2,490 (4,055)
Income taxes (1,109) (1,019)
Net income (loss) from continued operations 1,381 (5,074)
Income (loss) from discontinued operations 0 0
Net income (loss) before minority interest 1,381 (5,074)
Net income (loss) pertaining to minority interest 0 0
Net income (loss) pertaining to the Group 1,381 (5,074)
Consolidated statement of other comprehensive income
Thousands of euro
1Q 2021 1Q 2020
Net income (loss) for the period from continued operations 1,381 (5,074)
Exchange differences on translation of foreign operations 5,357 2,831
Exchange differences on equity method evaluated companies 0 206
Total exchange differences 5,357 3,037
Total components that will be reclassified to the profit (loss) in the future 5,357 3,037

Consolidated statement of other comprehensive income

Write-down of financial receivables and other financial assets (168) (120)
Income (loss) from equity method evalueted companies 2 (571)
Foreign exchange gains (losses), net (73) 41
Income taxes (1,109) (1,019)
Income (loss) from discontinued operations 0 0
Net income (loss) pertaining to minority interest 0 0
Thousands of euro
Net income (loss) for the period from continued operations 1,381 (5,074)
Exchange differences on translation of foreign operations 5,357 2,831
Exchange differences on equity method evaluated companies 0 206
Total exchange differences 5,357 3,037
Total components that will be reclassified to the profit (loss) in the future 5,357 3,037
Other comprehensive income (loss), net of taxes 5,357 3,037
Total comprehensive income (loss), net of taxes 6,738 (2,037)
attributable to:
- Equity holders of the Parent Company 6,738 (2,037)

Consolidated Statement of Financial Position

SAES Group – Additional periodic financial information as at March 31, 2021
Consolidated Statement of Financial Position
Thousands of euro
March 31, December 31,
2021 2020
Property, plant and equipment, net 76,042 73,353
Intangible assets 42,504 41,165
Right of use 5,040 5,415
Securities 134,554 134,087
Other non current assets 14,545 13,984
Current assets 158,929 156,781
Total Assets 431,614 424,785
Shareholders' equity 244,900 238,162
Minority interest in consolidated 0 0
Total Shareholders' Equity 244,900 238,162
Non current liabilities 116,373 115,821
Current liabilities 70,341 70,802
Total Liabilities and Shareholders' Equity 431,614 424,785
Consolidated Cash Flows Statement
Thousands of euro
1Q 2021 1Q 2020

Consolidated Cash Flows Statement

1Q 2021 1Q 2020
Net income (loss) from continued operations 1,381 (5,074)
Current income taxes 998 1,665
Change in deferred income taxes 111 (646)
Depreciation, amortization and write down of non current assets 2,770 2,544
Net loss (gain) on disposal of fixed assets (1) 1
Interest and other financial (income) expenses, net (325) 10,937
Other non-monetary costs (revenues) (828) (578)
4,106 8,849
Change in operating assets and liabilities (5,458) (7,954)
Payments of termination indemnities and similar obligations (66) (35)
Financial income received, net of payment of interests (8) (221)
Taxes paid (309) (340)
Net cash provided by (used by) operating activities (1,735) 299
Purchase of tangible and intangible assets, net of proceeds from sales (3,095) (3,186)
Purchase of securities, net of disinvestments 213 (784)
Income from securities, net of management fees 626 547
Purchase of other investments (26) 0
Cash flows provided by (used by) investing activities (2,282) (3,423)
Proceeds from financial liabilities, net of repayments 1,448 411
Interests receipts on financial receivables from related parties 1 1
Dividends payment 0 0
Interests and other expenses paid on loans (365) (313)
Repayment of financial liabilities for leased assets (interests included) (627) (554)
Other financial liabilities/assets 0 40
Cash flows provided by (used by) financing activities 457 (415)
Effect of exchange rate differences 1,404 768
Increase (decrease) in cash and cash equivalents (2,156) (2,771)
Cash and cash equivalents at the beginning of the period 30,700 48,521
Cash and cash equivalents at the end of the period 28,544 45,750

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting Principles, Methods and Structure of the Group

This document has been prepared applying the international accounting standards (IFRS) and in accordance with article 2.2.3, paragraph 3, of the Regulation of the Markets organized and managed by Borsa Italiana S.p.A. Concerning the content, please make reference to the pre-existing article 154-ter, paragraph 5, of "Financial Consolidation Act", also in the light of what clarified by ESMA in the Q&A on the Directive 2004/109/CE.

The additional periodic information is consistent with the accounting principles that govern the preparation of the annual and consolidated financial statements, insofar as they are applicable. Evaluation procedures adopted in the additional periodic financial information are substantially similar to those usually applied to prepare the annual and consolidated financial statements.

In relation to the changes in the scope of consolidation occurred during the first quarter of 2021, please note that on March 31, 2021, the establishment of a branch of SAES Coated Films S.p.A. in Freiburg - Germany was completed (registration number HRD723906), in line with the strategy of the company that is committed to improving its presence in strategic markets, in order to boost new business opportunities. This decision was approved by the Board of Directors of SAES Coated Films S.p.A. held on November 26, 2020.

With regard to the investment in the EUREKA! Venture capital fund, on February 25, 2021, an additional payment of €37 thousand was made, including both the portion of commissions and management fees, and the portion of an investment made by the fund in an innovative start-up, a spin-off of the NEST laboratory of the Scuola Normale Superiore di Pisa and of the Centro Nazionale delle Ricerche, that has developed a point-ofcare diagnostic system based on nanotechnological devices with an acoustic surface wave for the detection of molecules, focusing on the detection of brain trauma.

Relevant events occurred in the first quarter of 2021

On February 12, 2021 the SAES Group announced the submission of an offer for the acquisition of 100% of the share capital of Strumenti Scientifici Cinel S.r.l. (CINEL), a consolidated international player in the sector of components and scientific equipment for synchrotrons and particle accelerators, based in the province of Padua. The price offered is equal to around €19 million, to be paid to CINEL shareholders in a single tranche and in cash, the latter already available to SAES. This consideration was defined by calculating the equity value, determined by algebraically adding the net financial position (NFP) as at December 31, 2020 to the enterprise value (equal to 8 times the EBITDA obtained as the arithmetic average of the EBITDA resulting from the approved financial statements related to the years 2019 and 2020, eventually adjusted for non-recurring items). The difference between the values of NFP and net working capital (NWC) at the closing date, compared to that at December 31, 2020, will determine a price adjustment.

The spaces currently used by CINEL, already sold to another company, will be leased through the signing of a specific contract lasting six years and tacitly renewable at the same conditions for at least the same period, for a total annual rent of €0.1 million.

The closing of the transaction is currently expected by the end of the second quarter of 2021.

The aim of the acquisition, for SAES, is to strengthen its competitive position in the vacuum sector, through an expansion of its product range for particle accelerators and synchrotrons, with products that are entirely Italian and at the forefront on a global scale.

CINEL recorded net revenues of approximately €7.6 million in 2020, with an EBITDA margin of 32.4%. In 2019, revenues were equal to €6.7 million, with an EBITDA margin of 23.2%. As at December 31, 2020, the company's shareholders equity amounted to €2.9 million, while the net financial position was positive for approximately €2.8 million. The company employs around 35 people.

***

The Group's economic result will continue to be influenced by the trend in the exchange rate of the euro against the US dollar. In order to preserve the margin from the exchange rate fluctuations, on March 9, 2021, forward sale contracts on the dollar were signed for a notional value of \$6.7 million, with an average forward exchange rate of 1.1957 against the euro. These contracts will extend throughout the remaining part of 2021.

Subsequent to March 31, 2021 no further forward contracts have been entered into.

Net Sales by Business and by Geographic Location of Customers

Metallurgy Division
Security & Defence Getters and metal dispensers for electronic vacuum devices
Electronic Devices Getters for microelectronic, micromechanical systems (MEMS) and sensors
Healthcare Diagnostics Getters for X-ray tubes used in image diagnostic systems
Thermal Insulated Devices Products for thermal insulation
Lamps Getters and metal dispensers used in discharge lamps and fluorescent lamps
Sintered Components for Electronic
Devices and Lasers
solid-state devices Cathodes and materials for thermal dissipation in electronic tubes, lasers and
SMA Industrial Shape memory alloys actuator devices for the industrial sector (domotics, white
goods industry, consumer electronics, healthcare, automotive and luxury sector)
Vacuum Technology Division
Solutions for Vacuum Systems research and in particle accelerators Getter pumps for vacuum systems that find application in the industrial sector, in
Medical Division
Nitinol for Medical Devices Nitinol raw material and components for the biomedical sector
Specialty Chemicals Division
Functional Dispensable Products optoelectronics, photonics and mobile sector Getter materials integrated in polymeric matrices for OLED applications,
Advanced Packaging Division
Advanced Coatings Lacquers and advanced plastic films for the sustainable packaging sector
Thousands of euro (except %)
Business 1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
Vacuum Technology Division
Solutions for Vacuum Systems Getter pumps for vacuum systems that find application in the industrial sector, in
research and in particle accelerators
Medical Division
Nitinol for Medical Devices Nitinol raw material and components for the biomedical sector
Specialty Chemicals Division
Functional Dispensable Products Getter materials integrated in polymeric matrices for OLED applications,
optoelectronics, photonics and mobile sector
Advanced Packaging Division
Advanced Coatings Lacquers and advanced plastic films for the sustainable packaging sector
Thousands of euro (except %)
Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
Security & Defense 4,290 4,608 -6.9% -0.3% -6.6%
Electronic Devices 3,421 4,168 -17.9% -14.2% -3.7%
Healthcare Diagnostics 1,219 1,665 -26.8% -23.9% -2.9%
Lamps 829 1,053 -21.3% -18.3% -3.0%
Thermal Insulated Devices 931 962 -3.2% 3.8% -7.0%
Sintered Components for Electronic Devices & Lasers 1,900 2,073 -8.3% 0.2% -8.5%
SMA Industrial 2,846 3,875 -26.6% -24.2% -2.4%
Metallurgy Division 15,436 18,404 -16.1% -11.3% -4.8%
Solutions for Vacuum Systems 3,182 2,442 30.3% 34.3% -4.0%
Vacuum Technology Division 3,182 2,442 30.3% 34.3% -4.0%
Nitinol for Medical Devices 17,985 21,579 -16.7% -15.0% -1.7%
Medical Division 17,985 21,579 -16.7% -15.0% -1.7%
Functional Dispensable Products 2,736 4,275 -36.0% -35.0% -1.0%
Specialty Chemicals Division 2,736 4,275 -36.0% -35.0% -1.0%
Advanced Coatings 1,699 2,585 -34.3% -34.3% 0.0%
Advanced Packaging Division 1,699 2,585 -34.3% -34.3% 0.0%
Total Net Sales 41,038 49,285 -16.7% -11.3% -5.4%
SAES Group – Additional periodic financial information as at March 31, 2021
Consolidated Net Sales by Geographic Location of Customer
Thousands of euro
Geographic Area 1Q 2021 1Q 2020
Italy
European countries
1,211
7,920
1,269
9,814
North America 23,198 25,195
Japan 1,936 1,698
South Korea 501 391
China 4,795 8,662
Rest of Asia
Rest of the World
1,064
413
1,884
372

Consolidated Net Sales by Geographic Location of Customer

However, the comparison is not significant, due to the still limited impact of the Covid-19 crisis on the revenues of 1Q 2020, as well as the negative exchange rate effect. Excluding the latter (-5.4%), the Group recorded an organic decrease in revenues equal to -11.3%, distributed in all the Divisions, with the exception of the Vacuum Technology Division (vacuum systems), favored by the recovery of investments in the sector of particle accelerators. The most significant organic decreases in absolute term were recorded in the following businesses: in the Nitinol sector (Medical Division), penalized by the postponement of elective therapies, due to the persistence of the pandemic; in that of shape memory alloys for industrial applications (Metallurgy Division), due to US-China tensions; in the Specialty Chemicals Division, due to supply advances in the first quarter of 2020, to secure stocks in anticipation of Covid-19. In the Advanced Packaging Division, the decrease was exclusively attributable to the phase-out of the more traditional metallized products, completed only at the end of the first half of 2020. 1Q 2021 1Q 2020 Difference Consolidated sales 41,038 49,285 (8,247)

Thousands of euro

persistence of the pandemic; in that of shape memory alloys for industrial applications (Metallurgy Division),
due to US-China tensions; in the Specialty Chemicals Division, due to supply advances in the first quarter of
2020, to secure stocks in anticipation of Covid-19. In the Advanced Packaging Division, the decrease was
exclusively attributable to the phase-out of the more traditional metallized products, completed only at the end of
the first half of 2020.
in the Nitinol sector (Medical Division), penalized by the postponement of elective therapies, due to the
By including also the revenues of the joint ventures4
compared to €51.5 million in the first quarter of 2020. The decrease was due only to the reduction in
consolidated revenues. In fact, please note the higher revenues of the joint venture SAES RIAL Vacuum S.r.l.
and the substantially stable revenues of the joint venture Actuator Solutions GmbH.
, total revenues of the Group were equal to €43.6 million,
Thousands of euro
50% sales of the joint venture Actuator Solutions 2,163 2,239 (76)
49% sales of the joint venture SAES RIAL Vacuum S.r.l. 626 176 450
46.73% sales of the joint venture Flexterra 0 14 (14)
Intercompany eliminations (267) (251) (16)
Other adjustments 84 30 54
Total revenues of the Group 43,644 51,493 (7,849)
Information by operating segment
Consolidated statement of profit or loss by Division
Metallurgy Vacuum Technology Division Medical
Division
Specialty Chemicals Division Advanced Packaging Division Not Allocated TOTAL
Thousands of euro 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020
Division
1Q 2021
1Q 2020
1Q 2021
21,579 2,736 4,275 1,699
(1,591)
2,585 0 0 41,038 49,285
(28,927)
Total net sales 15,436 18,404 3,182 2,442 17,985 (2,336) (276) 0 (25,123)
Cost of sales
Gross profit (loss)
(7,405)
8,031
(8,831)
9,573
(1,619)
1,563
(1,009)
1,433
(12,238)
5,747
(13,550)
8,029
(1,994)
742
(3,201)
1,074
108 249 (276) 0 15,915 20,358

Information by operating segment

Specialty Chemicals Division Advanced Packaging Division Not Allocated

4 Actuator Solutions (50%), SAES RIAL Vacuum S.r.l. (49%) and Flexterra (46.73%).

Metallurgy Division

Consolidated revenues of the Metallurgy Division amounted to €15.4 million in the first quarter of 2021, down by -16.1% compared to €18.4 million in the corresponding quarter of 2020. The currency trend recorded a negative exchange rate effect equal to -4.8%, net of which revenues organically decreased by 11.3%.

The organic decrease was mainly concentrated in the SMA Industrial sector (-24.2%), negatively affected by the international tensions between the US and China, that penalized the sales for consumer electronics applications in the telecom sector. Instead, the Electronic Devices sector (organic decrease equal to -14.2%) suffered the effect of the saturation of the thermo-scanner market related to the Covid-19 pandemic. In medical diagnostics (Healthcare Diagnostics), the organic decrease (-23.9%) was mainly attributable to higher sales concentrated in the first quarter of 2020 in anticipation of the Covid-19 crisis. Finally, the structural contraction of the lamp sector continued (organic decrease of -18.3%). All the other sectors were aligned or substantially stable.

The table below shows the revenues in the first quarter of 2021 related to the different businesses, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2020.

Thousands of euro (except %)
Business 1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
Security & Defense 4,290 4,608 -6.9% -0.3% -6.6%
Electronic Devices 3,421 4,168 -17.9% -14.2% -3.7%
Healthcare Diagnostics 1,219 1,665 -26.8% -23.9% -2.9%
Lamps 829 1,053 -21.3% -18.3% -3.0%
Thermal Insulated Devices 931 962 -3.2% 3.8% -7.0%
Sintered Components for Electronic Devices & Lasers 1,900 2,073 -8.3% 0.2% -8.5%
SMA Industrial 2,846 3,875 -26.6% -24.2% -2.4%
Metallurgy Division 15,436 18,404 -16.1% -11.3% -4.8%

Gross profit of the Metallurgy Division was equal to €8 million in the first quarter of 2021, compared to €9.6 million in the corresponding period of 2020, down (-16.1%) due to lower sales. The gross margin was unchanged (52%) in the two quarters.

Vacuum Technology Division

million in the corresponding period of 2020, down (-16.1%) due to lower sales. The gross margin was
unchanged (52%) in the two quarters.
Operating income of the Metallurgy Division was equal to €5.2 million, compared to €6.6 million in the first
quarter of 2020, down (-21.2%) due to the lower gross profit, with operating expenses almost unchanged (-
3.9%). The operating margin decreased from 36% to 33.8%.
Vacuum Technology Division
Consolidated revenues of the Vacuum Technology Division were equal to €3.2 million in the first quarter of
2021, up by 30.3% compared to €2.4 million in the corresponding period of 2020. The exchange rate effect was
negative and equal to -4%, net of which sales organically increased by +34.3%.
The excellent result was due to the continued growth in the sales of pumps and products for analytical
instrumentation and particle accelerators.
The table below shows the revenues in the first quarter of 2021, with evidence of the exchange rate effect and of
the organic change compared to the corresponding period of 2020.
Thousands of euro (except %)
Business 1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
Solutions for Vacuum Systems 3,182 2,442 30.3% 34.3% -4.0%
Vacuum Technology Division 3,182 2,442 30.3% 34.3% -4.0%
9

Gross profit of the Vacuum Technology Division was equal to €1.6 million in the first quarter of 2021, up by 9.1% compared to €1.4 million in the first quarter of 2020. Despite the increase in sales and the consequent increase in gross profit, the gross margin decreased from 58.7% to 49.1 %, due to the different product mix.

Medical Division

Operating income of the Vacuum Technology Division amounted to €0.6 million, compared to €0.5 million in
the first quarter of 2020 (+23.1%): the increase in the operating income was in line to that of the gross profit in
absolute terms, with stable operating expenses. The operating margin slightly decreased from 20.9% to 19.7%.
Medical Division
Consolidated revenues of the Medical Division were equal to €18 million in the first quarter of 2021, down
when compared to €21.6 million in the corresponding period of 2020. The exchange rate effect was negative (-
1.7%), net of which the organic decrease was equal to -15%.
The comparison with the first quarter of 2020 is not significant, as the first three months of the previous year had
not suffered any slowdown due to the pandemic. In fact, please note that the slowdown in the demand by
hospitals for medical devices for the suspension of deferrable interventions (elective surgery) in order to
concentrate resources on Covid-19 cases, started only in the last part of the first quarter of 2020, but continued in
1Q 2021, albeit with some signs of recovery.
The table below shows the revenues in the first quarter of 2021, with evidence of the exchange rate effect and of
the organic change compared to the corresponding period of 2020.
Thousands of euro (except %)
Business 1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
Nitinol for Medical Devices 17,985 21,579 -16.7% -15.0% -1.7%
Medical Division 17,985 21,579 -16.7% -15.0% -1.7%
Gross profit of the Medical Division was equal to €5.7 million in the first quarter of 2021, compared to €8
million in the corresponding period of 2020, while the gross margin went from 37.2% to 32%, penalized by
lower sales and the consequent lower economies of scale.

The operating income of the Medical Division was equal to €3.6 million (20.1% of revenues), compared to €5.8 million (26.8% of revenues) in the first quarter of 2020, showing a decrease in line with that of the gross profit.

Specialty Chemicals Division

Consolidated revenues of the Specialty Chemicals Division were equal to €2.7 million in the first quarter of 2021, compared to €4.3 million in the corresponding period of 2020. The exchange rate effect was negative and equal to -1%, net of which the organic decrease was equal to -35%.

Also in this case the comparison is not significant, due to advances in supplies in the business of advanced components for consumer electronics applications in the first quarter of 2020, both to face the Covid-19 crisis and in anticipation of the temporary interruption of production for scheduled extraordinary maintenance activities. On the other hand, please note the increase in sales of dispensable dryers for passive matrix OLED displays and also used in pulse oximeter displays, as well as the first sales of advanced getters for the active protection of advanced sensors and transducers for the 5G market and for the autonomous driving.

The table below shows the revenues in the first quarter of 2021, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2020.

SAES Group – Additional periodic financial information as at March 31, 2021
Business 1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
2,736 4,275 -36.0% -35.0% (%)
-1.0%
2,736 4,275 -36.0% -35.0% -1.0%
Thousands of euro (except %)
Functional Dispensable Products
Specialty Chemicals Division
Gross profit of the Specialty Chemicals Division was equal to €0.7 million in the first quarter of 2021,
compared to €1.1 million in the corresponding period of 2020. The gross margin increased from 25.1% to

Advanced Packaging Division

The table below shows the revenues in the first quarter of 2021, with evidence of the exchange rate effect and of
the organic change compared to the corresponding period of 2020.
Thousands of euro (except %)
Business
1Q 2021 1Q 2020 Total
difference
(%)
Organic
change
(%)
Exchange
rate
effect
(%)
The decrease was exclusively attributable to the phase-out of metallized products completed at the end of the
first half of 2020; considering only lacquered products, sales grew by over 8% and already included some new
products sampled at the end of the previous year.
Consolidated revenues of the Advanced Packaging Division were equal to €1.7 million in the first quarter of
2021, compared to €2.6 million the first quarter of 2020.
Sales were exclusively denominated in euro.
Advanced Packaging Division
The operating income of the Specialty Chemical Division was equal to €0.3 million (9.4% of revenues),
compared to €0.6 million (12.9% of revenues) in the first quarter of 2020: the decrease was in line with that of
the gross profit, while operating expenses were stable.

Following stable operating expenses, the operating loss went from -€0.6 million to -€0.7 million.

Not Allocated Costs

It includes the costs related to basic research projects, aimed at diversification in innovative businesses, as well as corporate costs (costs that cannot be directly attributed or reasonably allocated to any business sector, but that refer to the Group as a whole).

The unallocated cost of goods sold, equal to a total of -€0.3 million, mainly refers to costs related to a project for the renovation and modernization of some production departments at the Lainate site, currently under completion.

Total unallocated operating costs amounted to -€6.4 million in the first quarter of 2021, compared to -€5.5 million in the corresponding period of 2020. The increase was mainly concentrated in G&A expenses (especially higher IT and IP consultancy costs and higher sanitation costs due to Covid-19).

Finally, please note costs for Covid-19 donations equal to €0.5 million under the item "other net income (expenses)" in the first quarter of 2020.

Economic results of the first quarter of 2021

Consolidated gross profit was equal to €15.9 million in the first quarter of 2021, compared to €20.4 million in the corresponding period of 2020, while the gross margin was 38.8% compared to 41.3%. However, as previously reported, the comparison is not significant due to the still limited impact of the Covid-19 crisis in the first quarter of 2020.

Compared to the fourth quarter of 2020, gross profit and gross margin were stable (€15.9 million and 39.1% in the last quarter of 2020). In particular, please note that the increase in margins in the Metallurgy Division (thanks to increased economies of scale) and in the Advanced Packaging and Specialty Chemicals Divisions (different product mix) offset the decrease in the Medical Division (production inefficiencies due to the duplication of the tube department in Bethel) and in the Vacuum Technology Division (as a consequence of lower sales). 1Q 2021 1Q 2020 4Q 2020

first quarter of 2020.
Compared to the fourth quarter of 2020, gross profit and gross margin were stable (€15.9 million and 39.1% in
the last quarter of 2020). In particular, please note that the increase in margins in the Metallurgy Division
(thanks to increased economies of scale) and in the Advanced Packaging and Specialty Chemicals Divisions
(different product mix) offset the decrease in the Medical Division (production inefficiencies due to the
duplication of the tube department in Bethel) and in the Vacuum Technology Division (as a consequence of
lower sales).
Consolidated operating income amounted to €2.2 million (5.5% of revenues) in the first quarter of 2021,
compared to an operating income of €6.8 million (13.9% of revenues) in the first quarter of the previous year:
also in this case the two figures are not comparable as the decrease was exclusively due to the different impact of
Covid-19 on the sales in the two periods.
However, compared to the fourth quarter of 2020, both the operating income and the operating margin were
stable (€2.3 million and 5.6% in the last quarter of 2020).
Consolidated EBITDA was equal to €5 million (12.2% of revenues), decreased when compared to €9.4 million
(19% of revenues) in the corresponding quarter of 2020, but equal to that of the fourth quarter of 2020, both in
absolute and in percentage terms.
Thousands of euro
1Q 2021 1Q 2020 4Q 2020
Operating income (loss) 2,238 6,841 2,259
Depreciation & amortization (2,763) (2,544) (2,757)
Write-down of assets (7) 0 5
Bad debt provision accrual (release) 1 1 4
EBITDA 5,007 9,384 5,007
% on sales 12.2% 19.0% 12.3%
Consolidated operating expenses were equal to €13.6 million (33.2% of revenues) in the first quarter of 2021,
compared to €12.9 million (26.2% of revenues) in the corresponding period of the previous year. Net of the
exchange rate effect (-€0.3 million), the increase in the first quarter of 2021 (equal to approximately €1 million)
was concentrated in G&A expenses (especially higher consultancy costs of the Parent Company in the IT and IP

Consolidated operating expenses were equal to €13.6 million (33.2% of revenues) in the first quarter of 2021, compared to €12.9 million (26.2% of revenues) in the corresponding period of the previous year. Net of the exchange rate effect (-€0.3 million), the increase in the first quarter of 2021 (equal to approximately €1 million) was concentrated in G&A expenses (especially higher consultancy costs of the Parent Company in the IT and IP areas and higher costs of the US subsidiaries for the recruiting of new staff, as well as higher costs of sanitation due to Covid-19) and in R&D (in particular, innovation projects of the Parent Company).

The net balance of other income (expenses) was substantially nil (negative for -€57 thousand) in the first quarter of 2021, compared to a negative figure equal to -€0.6 million in the corresponding quarter of 2020, including the aforementioned Covid-19 donation made by the Parent Company equal to €0.5 million.

The sum of the exchange rate differences recorded a slightly negative balance equal to -€73 thousand in the first quarter of 2021(mainly attributable to losses resulting from the fair value valuation of forward contracts entered into to hedge commercial transactions in dollars expected for the remaining part of 2021); this amount must be compared with a value of +€41 thousand (exchange rate differences on commercial transactions in dollars, including intra-group ones) in the first quarter of the previous year.

The net balance of financial income and expenses was positive for +€0.3 million (mainly net income on securities equal to +€0.8 million, as well as interest and bank commissions equal to -€0.3 million). The figure compared with a negative value of -€10.4 million (mainly, devaluation of the securities in the portfolio due to the Covid-19 financial crisis) in the first quarter of the previous year.

The result deriving from the valuation with the equity method of the joint ventures was positive and equal to +€2 thousand in the first quarter of 2021 and it was fully attributable to the joint venture SAES RIAL Vacuum S.r.l. In the corresponding period of 2020, the loss amounted to a total of -€0.6 million, mainly attributable to the Flexterra joint venture.

Consolidated net income before taxes was positive and equal to +€2.5 million in the first quarter of 2021, compared to a negative balance of -€4.1 million in the first quarter of 2020.

Income taxes amounted to €1.1 million in the first quarter of 2021, compared to €1 million in the first quarter of 2020, and mainly included the taxes of the US companies. Please note that in the current quarter the income before taxes was positive compared to a loss in 1Q 2020, but the taxes were substantially aligned in absolute terms, since SAES Investments S.A., in the first quarter of 2020, had not prudently recognized deferred tax assets on the losses recorded on the securities due to the Covid-19 impact.

Consolidated net income was positive and equal to +€1.4 million in the first quarter of 2021, compared to a negative consolidated net income result of -€5.1 million in the corresponding quarter of the previous year.

Consolidated statement of profit or loss

SAES Group – Additional periodic financial information as at March 31, 2021
Consolidated statement of profit or loss
Thousands of euro
1Q 2021 4Q 2020
Total net sales 41,038 40,607
Cost of sales (25,123) (24,711)
Gross profit 15,915 15,896
R&D expenses (2,828) (2,632)
Selling expenses (2,911) (2,860)
G&A expenses (7,881) (8,377)
Total operating expenses (13,620) (13,869)
Other income (expenses), net (57) 232
Operating income (loss) 2,238 2,259
Interest and other financial income, net 491 3,343
Write-down of financial receivables and other financial assets (168) (2,657)
Income (loss) from equity method evalueted companies 2 (244)
Foreign exchange gains (losses), net (73) (245)
Income (loss) before taxes 2,490 1,865
Income taxes (1,109) (211)
Net income (loss) from continued operations 1,381 1,654
Income (loss) from discontinued operations 0 0
Net income (loss) before minority interest 1,381 1,654
Net income (loss) pertaining to minority interest 0 0
Net income (loss) pertaining to the Group 1,381 1,654
Consolidated statement of other comprehensive income
Thousands of euro
1Q 2021 4Q 2020
Net income (loss) for the period from continued operations 1,381 1,654
Exchange differences on translation of foreign operations 5,357 (4,868)
Exchange differences on equity method evaluated companies 0 (319)
Total exchange differences 5,357 (5,187)
0
Equity transaction costs related to equity method evaluated companies
Total components that will be reclassified to the profit (loss) in the future
0
5,357
(5,187)

Consolidated statement of other comprehensive income

Thousands of euro

Total operating expenses (13,620) (13,869)
Other income (expenses), net (57) 232
Interest and other financial income, net 491 3,343
Write-down of financial receivables and other financial assets (168) (2,657)
Income (loss) from equity method evalueted companies 2 (244)
Foreign exchange gains (losses), net (73) (245)
Income taxes (1,109) (211)
Income (loss) from discontinued operations 0 0
Net income (loss) pertaining to minority interest 0 0
Consolidated statement of other comprehensive income
Thousands of euro
Net income (loss) for the period from continued operations 1,381 1,654
Exchange differences on translation of foreign operations 5,357 (4,868)
Exchange differences on equity method evaluated companies 0 (319)
Total exchange differences 5,357 (5,187)
Equity transaction costs related to equity method evaluated companies 0 0
Total components that will be reclassified to the profit (loss) in the future 5,357 (5,187)
Actuarial gain (loss) on defined benefit plans 0 79
Income taxes 0 (19)
Actuarial gain (loss) on defined benefit plans, net of taxes 0 60
Fair value variations on investments in other companies 0 (110)
Income taxes 0 0
Total components that will not be reclassified to the profit (loss) in the future 0 (50)
Reversal of currency conversion reserve after the liquidation of equity method evaluated companies 0 0
Total components that have been reclassified to the profit (loss) 0 0
Other comprehensive income (loss), net of taxes - continued operations 5,357 (5,237)
Total comprehensive income (loss), net of taxes 6,738 (3,583)
attributable to:
- Equity holders of the Parent Company 6,738 (3,583)
- Minority interests 0 0
Consolidated statement of profit or loss by Division
Thousands of euro Metallurgy
Medical
Advanced Packaging Division Not Allocated
TOTAL
Vacuum Technology Division
Specialty Chemicals Division
Division
Division
1Q 2021
4Q 2020
1Q 2021
4Q 2020
1Q 2021
4Q 2020
1Q 2021
4Q 2020
1Q 2021
4Q 2020
1Q 2021
4Q 2020
1Q 2021
Total net sales
Cost of sales
15,436
14,869
3,182
4,108
17,985
16,992
2,736
3,751
(7,405)
(7,573)
(1,619)
(1,762)
(12,238)
(11,002)
(1,994)
(2,902)
1,699
887
0
(1,591)
(1,035)
(276)
0
41,038
(437)
(25,123)
Gross profit (loss)
Operating expenses and other income (expenses)
8,031
7,296
1,563
2,346
5,747
5,990
742
849
(2,807)
(2,640)
(935)
(1,089)
(2,132)
(1,887)
(485)
(436)
108
(148)
(276)
(828)
(652)
(6,490)
(437)
15,915
(6,933)
(13,677)
Specialty Chemicals Division Advanced Packaging Division Not Allocated

Net financial position

Consolidated net financial position as at March 31, 2021 was positive and equal to €92.4 million compared to a positive consolidated net financial position equal to €95.7 million as at December 31, 2020. The first quarter ended with a negative operating management of -€1.3 million, penalized for -€5.1 million by the increase in the net working capital. The latter was mainly due to higher trade receivables (a consequence of the higher sales in the Medical and Advanced Packaging Divisions in the first quarter of 2021, compared to the last months of 2020) and to the increase in inventory, in anticipation of higher sales expected in the coming months. Finally, please note lower trade payables compared to those at December 31, 2020, with the latter including positions related to special projects of the Parent Company. Investment activities absorbed cash for -€2.4 million (capex equal to -€3.1 million, although offset by income on securities and a positive change in their fair value for a total of +€0.8 million). The financial management was negative and equal to -€0.6 million (mainly interest on bank loans and new leasing contracts). On the other hand, the exchange rate effect was positive for +€0.9 million, mainly due to the revaluation of both the dollar and the renminbi on the cash in these currencies compared to December 31, 2020. Cash and cash equivalents 28,653 30,678

Consolidated Net Financial Position

in the Medical and Advanced Packaging Divisions in the first quarter of 2021, compared to the last months of
2020) and to the increase in inventory, in anticipation of higher sales expected in the coming months. Finally,
please note lower trade payables compared to those at December 31, 2020, with the latter including positions
related to special projects of the Parent Company. Investment activities absorbed cash for -€2.4 million (capex
equal to -€3.1 million, although offset by income on securities and a positive change in their fair value for a total
of +€0.8 million). The financial management was negative and equal to -€0.6 million (mainly interest on bank
loans and new leasing contracts). On the other hand, the exchange rate effect was positive for +€0.9 million,
mainly due to the revaluation of both the dollar and the renminbi on the cash in these currencies compared to
December 31, 2020.
Consolidated Net Financial Position
Thousands of euro
March 31,
2021
December 31,
2020
Cash on hands 8 10
Cash equivalents 28,645 30,668
Cash and cash equivalents 28,653 30,678
Related parties financial assets, current 0 1
Securities - short term 70,120 70,661
Other current financial assets 0 11
Current financial assets 70,120 70,673
Bank overdraft (35,153) (32,514)
Current portion of long term debt (4,933) (5,199)
Derivative financial instruments (123) (32)
Other current financial liabilities (749) (1,001)
Current financial liabilities for leases (1,663) (1,932)
Current financial liabilities (42,621) (40,678)
Current net financial position 56,152 60,673
Related parties financial assets, non current 49 49
Securities - long term 134,554 134,087
Non current financial assets 134,603 134,136
Long term debt, net of current portion (94,987) (95,496)
Non current financial liabilities for leases (3,417) (3,571)
Non current financial liabilities (98,404) (99,067)
Non current net financial position 36,199 35,069
92,351 95,742

Consolidated net result per share

The net income per share amounted to €0.03330 per ordinary share and to €0.13855 per savings share in the first quarter of 2021. This figure compares with a net loss equal to -€0.27956 both for ordinary and savings share in the first quarter of 2020.

Consolidated income (loss) per share

SAES Group – Additional periodic financial information as at March 31, 2021
1Q 2021 1Q 2020
0.03330 (0.27956)
Consolidated income (loss) per share
Euro
Net income (loss) per ordinary share
Net income (loss) per savings share
0.13855 (0.27956)
Impact of the Covid-19 epidemic on the results as at March 31, 2021
Covid-19 one-offs

Impact of the Covid-19 epidemic on the results as at March 31, 2021

Covid-19 one-offs

SAES Group – Additional periodic financial information as at March 31, 2021
Consolidated income (loss) per share
Euro
Impact of the Covid-19 epidemic on the results as at March 31, 2021
Covid-19 one-offs
Thousands of euro 1Q 2021
Covid-19 one-offs Direct
labor
Manufacturing
overhead
R&D
expenses
Selling
expenses
G&A
expenses
Total
Personnel cost
Maintenance and repairs
Material and office material
(26) (11) (5) (2) 15
39
1
(29)
39
1
Transport, insurance, freight-direct
Consultant fees
Canteen, cleaning, vigilance
0
5
41
0
5
41
Training
Other costs
0
0
0
0
Total extraordinary cost of sales and
operating expenses Covid-19
(26) (11) (5) (2) 101 57
(*) The amount is composed by:
- savings for USA governmental misures to support companies and families, for -47 thousands of euro;
- additional personnel costs, for 18 thousands of euro.
Performance of the joint ventures

Performance of the joint ventures

Actuator Solutions

Actuator Solutions GmbH is based in Gunzenhausen (Germany) and is 50% jointly owned by SAES and Alfmeier Präzision, a German group operating in the fields of electronics and advanced plastic materials. This joint venture is focused on the development, production and commercialization of actuators using shape memory alloys in place of the engine. Its Asian subsidiaries Actuator Solutions Taiwan Co., Ltd. and Actuator Solutions (Shenzhen) Co., Ltd. have completed their liquidation process, started at the end of 2019, in 2020.

Actuator Solutions recorded net revenues equal to €4.3 million in the first quarter of 2021, compared to €4.5 million in the corresponding period of 2020. Despite the signs of recovery in the automotive market, revenues decreased by 3.4% in absolute terms, but the two periods are not comparable, since in the second half of 2020 Actuator Solutions sold a production line of actuators for the business seat comfort to its partner Alfmeier Präzision, renouncing to the sales, but receiving in exchange a commission on them, equal to the margin it would have earned had it continued the production activities. Therefore, this operation reduced the revenues of the joint venture in the automotive sector, replaced only by commissions, without any effect on the results. In addition, please note that the fees generated by the application development activities in the actuator sector almost doubled compared to the first quarter of 2020. Finally, in the first quarter of 2021, sales related to the development and assembly contract for Covid-19 rapid diagnostic test devices recorded revenues of approximately €0.7 million.

The gross margin (also not comparable with that of 2020) was equal to 33.4% in the first quarter of 2021, compared to 19.2% in the corresponding period of 2020, due to the different supply mix and to the higher incidence of revenues from application developments which, together with the Covid-19 rapid test assembly activities (the latter not yet started in 1Q 2020), were characterized by higher margins compared to the automotive seat comfort core business.

The increase (+€0.6 million) in gross profit made it possible to end the period with a net income of €0.7 million, compared to a substantially breakeven result (€85 thousand) in the first quarter of 2020.

SAES Group – Additional periodic financial information as at March 31, 2021
Thousands of euro
Actuator Solutions 1Q 2021 1Q 2020
100% 100%
Total net sales 4,326 4,478
Cost of sales
Gross profit
(2,881)
1,445
(3,616)
862
% on sales 33.4% 19.2%
Total operating expenses (602) (631)
Other income (expenses), net 9 15
Foreign exchange gains (losses), net (10) (19)
Income taxes (1) 14
Net income (loss) 701 85
Operating income (loss)
Interests and other financial income, net
The share pertaining to the SAES Group in the result of this joint venture for the first quarter of 2021 was equal
to +€0.4 million (+€42 thousand in the first quarter of 2020), but it was not recorded by the Group as the
shareholders' equity of the joint venture is still negative for over €2 million5
% on sales 852
19.7%
(140)
246
5.5%
(156)
, against a stake of SAES in Actuator
Solutions that has already been completely canceled.
Thousands of euro Actuator Solutions - SAES Group interest (50%)
Actuator Solutions March 31,
2021
December 31,
2020
Statement of financial position 50% 50%
Non current assets 2,897 3,012
2,188
5,085
1,809
Current assets 4,821
Total Assets
Non current liabilities
Current liabilities
4,236
3,209
4,306
3,226
Total operating expenses (602) (631)
Other income (expenses), net 9 15
Interests and other financial income, net (140) (156)
Foreign exchange gains (losses), net (10) (19)
Income taxes (1) 14
The share pertaining to the SAES Group in the result of this joint venture for the first quarter of 2021 was equal
to +€0.4 million (+€42 thousand in the first quarter of 2020), but it was not recorded by the Group as the
shareholders' equity of the joint venture is still negative for over €2 million5
Solutions that has already been completely canceled.
Actuator Solutions - SAES Group interest (50%)
Thousands of euro
Actuator Solutions
March 31, December 31, , against a stake of SAES in Actuator
2021 2020
Statement of financial position 50% 50%
Non current assets 2,897 3,012
Current assets
Total Assets
2,188
5,085
1,809
4,821
Non current liabilities 4,236 4,306
Current liabilities 3,209 3,226
Total Liabilities 7,445 7,532
Capital Stock, Reserves and Retained Earnings (2,711) (2,970)
Net income (loss) for the period 351 189
Other comprehensive income (loss) for the period (*) 0 70
Total Equity (2,360) (2,711)
(*) Currency translation differences arising from the conversion in euro of the financial statements of Actuator Solutions
Taiwan Co., Ltd. and Actuator Solutions (Shenzhen) Co., Ltd. from January 1, 2020 to the liquidation date
(September 2020), as well as the conversion reserve release into P&L after the liquidation of the two Asian
subsidiaries.
Actuator Solutions 1Q 2021 1Q 2020
Statement of profit or loss 50% 50%
Total net sales 2,163 2,239
Cost of sales (1,441) (1,808)
Gross profit 722 431
Total operating expenses (301) (316)
Other income (expenses), net 5 8
Operating income (loss) 426 123
Interests and other financial income, net (70) (78)
Foreign exchange gains (losses), net (5) (10)
Income taxes 0 7
2021 2020
Non current assets 2,897 3,012
Current assets 2,188 1,809
Non current liabilities 4,236 4,306
Current liabilities 3,209 3,226
Capital Stock, Reserves and Retained Earnings (2,711) (2,970)
Net income (loss) for the period 351 189
Taiwan Co., Ltd. and Actuator Solutions (Shenzhen) Co., Ltd. from January 1, 2020 to the liquidation date
(September 2020), as well as the conversion reserve release into P&L after the liquidation of the two Asian
subsidiaries.
Statement of profit or loss 50% 50%
Total net sales 2,163 2,239
Cost of sales (1,441) (1,808)
Gross profit 722 431
Total operating expenses (301) (316)
Other income (expenses), net 5 8
Operating income (loss) 426 123
Interests and other financial income, net (70) (78)
Foreign exchange gains (losses), net (5) (10)
Income taxes 0 7
Net income (loss) 351 42
Exchange differences 0 2
Total comprehensive income (loss) for the period 351 44

5 Pro-quota amount at 50%.

SAES RIAL Vacuum S.r.l.

SAES RIAL Vacuum S.r.l., established at the end of 2015, is jointly controlled by SAES Getters S.p.A. (49%) and Rodofil S.r.l. (51%). The company specializes in the design and production of vacuum chambers for accelerators, synchrotrons and colliders and combines SAES expertise in the field of materials, vacuum and innovation to the highest degree, with the experience of design, assembly and fine mechanical processing of Rodofil, in order to offer products of absolute excellence and quality and to compete successfully in the international markets. SAES RIAL Vacuum S.r.l. 1Q 2021 1Q 2020 100% 100%

SAES RIAL Vacuum S.r.l. ended the first quarter of 2021 with revenues equal to €1.3 million, significantly up compared to €0.4 million in the corresponding period of 2020 that instead had been characterized by the delay of some important research projects, also due to the Covid-19 pandemic.

However, the strong incidence of the cost of sales penalized the current quarter, which ended substantially at breakeven (+€4 thousand, compared to -€171 thousand in the first quarter of 2020).

SAES RIAL Vacuum S.r.l., established at the end of 2015, is jointly controlled by SAES Getters S.p.A. (49%)
and Rodofil S.r.l. (51%). The company specializes in the design and production of vacuum chambers for
accelerators, synchrotrons and colliders and combines SAES expertise in the field of materials, vacuum and
innovation to the highest degree, with the experience of design, assembly and fine mechanical processing of
Rodofil, in order to offer products of absolute excellence and quality and to compete successfully in the
SAES RIAL Vacuum S.r.l. ended the first quarter of 2021 with revenues equal to €1.3 million, significantly up
compared to €0.4 million in the corresponding period of 2020 that instead had been characterized by the delay of
However, the strong incidence of the cost of sales penalized the current quarter, which ended substantially at
breakeven (+€4 thousand, compared to -€171 thousand in the first quarter of 2020).
Thousands of euro
SAES RIAL Vacuum S.r.l. 1Q 2021 1Q 2020
Total net sales 100%
1,278
100%
359
Cost of sales (1,184) (459)
Gross profit 94 (100)
% on sales 7.4% -27.9%
Total operating expenses (163) (127)
Other income (expenses), net 78 13
Operating income (loss) 9 (214)
% on sales 0.7% -59.6%
Interests and other financial income, net (6) (11)
Foreign exchange gains (losses), net 1 0
Income taxes 0 54

The share pertaining to the SAES Group in the result of this joint venture for the first quarter of 2021 was equal to +€2 thousand (compared to -€84 thousand in the corresponding period of 2020).

SAES RIAL Vacuum S.r.l. - SAES Group interest (49%)

Thousands of euro
-------------------
SAES Group – Additional periodic financial information as at March 31, 2021
SAES RIAL Vacuum S.r.l. - SAES Group interest (49%)
Thousands of euro
March 31, December 31,
SAES RIAL Vacuum S.r.l. 2021 2020
Statement of financial position 49% 49%
Non current assets 312 302
Current assets 1,632 1,695
Total Assets 1,944 1,997
Non current liabilities 191 201
Current liabilities 992 1,037
Total Liabilities 1,183 1,238
Capital Stock, Reserves and Retained Earnings 759
451
Net income (loss) for the period 2
309
Other comprehensive income (loss) for the period (*) 0
(1)
Total Equity 761 759
(*) Actuarial differences on the employee severance indemnities (TFR), according to the IAS 19.
SAES RIAL Vacuum S.r.l. 1Q 2021 1Q 2020
Statement of profit or loss 49% 49%
Total net sales 626 176
Cost of sales (580) (225)
Gross profit 46 (49)
Total operating expenses (80) (62)
38 6
Other income (expenses), net
Operating income (loss) 4 (105)
Interests and other financial income, net (3) (5)
Foreign exchange gains (losses), net 1 0
December 31,
2020
302
1,695
201
1,037
759
451
2
309
49%
176
(225)
(49)
(62)
6
(105)
(5)
0
26
(84)
0
(84)
Flexterra, Inc., based in Skokie (close to Chicago, Illinois, USA), was established at the end of 2016 as a

Flexterra

Flexterra, Inc., based in Skokie (close to Chicago, Illinois, USA), was established at the end of 2016 as a development start-up with the objective of designing, manufacturing and commercializing materials and components for the production of flexible displays. Flexterra, Inc. fully controls Flexterra Taiwan Co., Ltd. SAES currently holds 46.73% of the share capital of the joint venture Flexterra, Inc.

Flexterra, qualified as a joint venture, ended the first quarter of 2021 with a net loss equal to -€1.1 million, aligned to that of the corresponding period of 2020 (mainly, costs for personnel employed in research activities and in general and administrative activities, consultancy fees, costs related to the management of patents and amortization of intangible assets, including intellectual property).

Other income (expenses), net 38 6
Interests and other financial income, net (3) (5)
Foreign exchange gains (losses), net 1 0
0 26
Actuarial gain (loss) on defined benefit plans, net of taxes 0 0
Flexterra, Inc., based in Skokie (close to Chicago, Illinois, USA), was established at the end of 2016 as a
development start-up with the objective of designing, manufacturing and commercializing materials and
components for the production of flexible displays. Flexterra, Inc. fully controls Flexterra Taiwan Co., Ltd.
Flexterra, qualified as a joint venture, ended the first quarter of 2021 with a net loss equal to -€1.1 million,
aligned to that of the corresponding period of 2020 (mainly, costs for personnel employed in research activities
and in general and administrative activities, consultancy fees, costs related to the management of patents and
Thousands of euro
Flexterra
1Q 2021 1Q 2020
100% 100%
Total net sales 0 30
Cost of sales 0 (17)
Gross profit 0 13
% on sales n.a. 43.3%
Total operating expenses (1,023) (1,070)
Other income (expenses), net 4 0
Operating income (loss) (1,019) (1,057)
% on sales n.a. n.a.
Interests and other financial income, net (56) (4)
Foreign exchange gains (losses), net
Income taxes
(65)
10
(32)
11

Flexterra - SAES Group interest (46.73%)

SAES Group – Additional periodic financial information as at March 31, 2021
The share pertaining to the SAES Group in the result of the joint venture for the first quarter of 2021 was equal
to -€0.5 million (-€0.5 million also in the first quarter of 2020), but since SAES's investment in Flexterra was
already completely written off and as there is currently no legal or implicit obligation by the Group to
recapitalize it, in accordance with the provisions of IAS 28, the share of SAES in the net loss has not been
recognized by the Group as a liability.
Flexterra - SAES Group interest (46.73%)
Thousands of euro
Flexterra March 31, December 31,
2021 2020
Statement of financial position 46.73% 46.73%
Non current assets 5,792 5,628
Current assets 793 1,086
Total Assets 6,585 6,714
Non current liabilities 81 44
Current liabilities 1,445 1,343
Total Liabilities 1,526 1,387
Capital Stock, Reserves and Retained Earnings 5,154 7,595
Reserve for stock options plan 173 173
Net income (loss) for the period (528) (1,811)
Other comprehensive income (loss) for the period (*) 260 (630)
Total Equity 5,059 5,327
(*) Currency translation differences arising from the conversion in euro of the financial statements of Flexterra, Inc.
and of Flexterra Taiwan Co., Ltd.
Flexterra 1Q 2021 1Q 2020
Statement of profit or loss 46.73% 46.73%
Total net sales 0 14
Cost of sales 0 (8)
Gross profit 0 6
Total operating expenses (479) (500)
Other income (expenses), net
Operating income (loss)
2
(477)
0
(494)
Interests and other financial income, net
Foreign exchange gains (losses), net
(26)
(30)
(2)
(15)
March 31,
2021
December 31,
2020
Non current assets 5,792 5,628
Current assets 793 1,086
Non current liabilities 81 44
Current liabilities 1,445 1,343
Capital Stock, Reserves and Retained Earnings 5,154 7,595
Reserve for stock options plan 173 173
Net income (loss) for the period (528) (1,811)
(*) Currency translation differences arising from the conversion in euro of the financial statements of Flexterra, Inc.
and of Flexterra Taiwan Co., Ltd.
Statement of profit or loss 46.73% 46.73%
Total net sales 0 14
Cost of sales 0 (8)
Gross profit 0 6
Total operating expenses (479) (500)
Other income (expenses), net 2 0
Operating income (loss) (477) (494)
Interests and other financial income, net (26) (2)
Foreign exchange gains (losses), net (30) (15)
Income taxes 5 5
Net income (loss) (528) (506)
Exchange differences 260 206
SAES Group – Additional periodic financial information as at March 31, 2021
Total statement of profit or loss of the Group
Thousands of euro 1Q 2021
Consolidated profit or loss Intercoy eliminations & Intercoy eliminations & Intercoy eliminations & Total profit or loss
50% Actuator Solutions other adjustments 49% SAES RIAL Vacuum S.r.l. other adjustments 46.73% Flexterra other adjustments of the Group
Total net sales 41,038 2,163 (77) 626 (106) 0 43,644
Cost of sales (25,123) (1,441) 77 (580) 106 0 (26,961)
Gross profit
% on sales
15,915
38.8%
722 0 46 0 0 0 16,683
38.2%
Total operating expenses (13,620) (301) (80) (479) 19 (14,461)
Other income (expenses), net (57) 5 38 2 (12)
Operating income (loss) 2,238 426 0 4 0 (477) 19 2,210
% on sales 5.5% 5.1%
Interest and other financial income, net 323 (70) 59 (3) (26)
23
306
Income (loss) from equity method evaluated companies
Write-down of investments from equity method
2 0 (2) 0
0
evaluated companies 0 0 0 0
(73) (5) 0 1 (30) (107)
Foreign exchange gains (losses), net 2,490 351 59 2 (2) (533) 42 2,409
Income (loss) before taxes 0 0 5 (1,104)
Income taxes (1,109) 59 2 (2) (528) 42 1,305
Net income (loss) from continued operations 1,381 351 0
Income (loss) from assets held for sale and 0 (2) (528) 42 1,305
discontinued operations
Net income (loss) before minority interest
1,381 351 59 2 0
Net income (loss) pertaining to minority interest 0 42 1,305
Net income (loss) pertaining to the Group 1,381 351 59 2 (2) (528)
Significant events occurred after the end of the quarter
Please note that the fair value of the Group's securities portfolio, consisting mainly of buy&hold assets,
increased by approximately 0.07% at the end of April compared to its value at March 31, 2021.

Significant events occurred after the end of the quarter

Business outlook

A further consolidation of the signs of recovery already appeared in March is expected for the remaining part of the year.

***

It should be noted that the additional periodic financial information as at March 31, 2021 is unaudited.

***

Consob regulatory simplification process

Please note that, on November 13, 2012, the Board of Directors has approved, pursuant to article no. 3 of Consob resolution no.18079/2012, to adhere to the opt-out provisions as envisaged by article no.70, paragraph 8, and no. 71, paragraph 1-bis, of the Consob Regulation related to Issuer Companies, and it therefore avails itself of the right of making exceptions to the obligations to publish information documents required in connection with significant mergers, spin-offs and capital increases by contributions in kind, acquisitions and disposals.

***

The Officer Responsible for the preparation of corporate financial reports of SAES Getters S.p.A. certifies that, in accordance with the second subsection of article 154-bis, part IV, title III, second paragraph, section V-bis, of Legislative Decree February 24, 1998, no. 58, the financial information included in the present document corresponds to book of account and book-keeping entries.

The Officer Responsible for the preparation of corporate financial reports Giulio Canale

Milan, May 13, 2021

On behalf of the Board of Directors Dr Ing. Massimo della Porta President

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