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 September 30, 2020

HIGHLIGHTS OF THE THIRD QUARTER OF 2020

In the third quarter of 2020 the SAES® Group achieved consolidated net revenues equal to €39 million, substantially in line with those achieved in the second quarter of 2020 (€39.8 million).

Likewise the second quarter of 2020, also the third quarter was negatively impacted by the effects of the Covid-19 pandemic, that hit in particular the medical segment of Nitinol, penalized by the elective surgeries postponements. The industrial SMAs segment was negatively affected by Covid-19 as well, in addition to the effect of international tensions between USA and China.

	Address of Principal Executive Offices:
Registered with the Milan Court Companies Register no. 00774910152	Viale Italia, 77 – 20045 Lainate (Milan), Italy
Additional periodic financial information as at September 30, 2020
HIGHLIGHTS OF THE THIRD QUARTER OF 2020 In the third quarter of 2020 the SAES® Group achieved consolidated net revenues equal to €39 million,
substantially in line with those achieved in the second quarter of 2020 (€39.8 million). Likewise the second quarter of 2020, also the third quarter was negatively impacted by the effects of the Covid
19 pandemic, that hit in particular the medical segment of Nitinol, penalized by the elective surgeries
postponements. The industrial SMAs segment was negatively affected by Covid-19 as well, in addition to the effect of international tensions between USA and China.

Thousands of euro (except %)

Business	1Q 2020	2Q 2020	3Q 2020
Security & Defense	4,608	4,916	3,357
Electronic Devices	4,168	3,534	5,222
Healthcare Diagnostics	1,665	1,087	874
	1,053	893	583
Lamps
Thermal Insulated Devices	962	712	550
Sintered Components for Electronic Devices & Lasers	2,073	1,660	1,788
SMA Industrial	3,875	2,333	2,248
Divisione Metallurgy	18,404	15,135	14,622
Solutions for Vacuum Systems	2,442	2,917	3,012
Divisione Vacuum Technology	2,442	2,917	3,012
Nitinol for Medical Devices	21,579	18,566	16,442
Divisione Medical	21,579	18,566	16,442
Functional Dispensable Products	4,275	749	3,405
Divisione Specialty Chemicals	4,275	749	3,405
Advanced Coatings Divisione Advanced Packaging	2,585 2,585	2,447 2,447	1,516 1,516

The comparison between the third and the second quarter of 2020 highlights the strongly penalizing exchange rate effect (-4.3%), attributable to the US dollar devaluation. Excluding such effect, revenues would have increased by 2.2% (€0.9 million).

SAES Group – Additional periodic financial information as at September 30, 2020



Thousands of euro (except %)
			Total	Organic	Exchange rate
Business	3Q 2020	2Q 2020	difference	change	effect
			(%)	(%)	(%)
Security & Defense	3,357	4,916	-31.7%	-29.1%	-2.6%
Electronic Devices	5,222	3,534	47.8%	54.0%	-6.2%
Healthcare Diagnostics	874	1,087	-19.6%	-17.2%	-2.4%
Lamps	583	893	-34.7%	-32.2%	-2.5%
Thermal Insulated Devices	550	712	-22.8%	-19.1%	-3.7%
Sintered Components for Electronic Devices & Lasers	1,788	1,660	7.7%	14.3%	-6.6%
SMA Industrial	2,248	2,333	-3.6%	-1.0%	-2.6%
Metallurgy Division	14,622	15,135	-3.4%	0.5%	-3.9%
Solutions for Vacuum Systems	3,012	2,917	3.3%	6.2%	-2.9%
Vacuum Technology Division	3,012	2,917	3.3%	6.2%	-2.9%

Nitinol for Medical Devices	16,442	18,566	-11.4%	-6.0%	-5.4%
Medical Division	16,442	18,566	-11.4%	-6.0%	-5.4%
Functional Dispensable Products	3,405	749	354.6%	357.8%	-3.2%
Specialty Chemicals Division	3,405	749	354.6%	357.8%	-3.2%
Advanced Coatings	1,516	2,447	-38.0%	-38.0%	0.0%
Advanced Packaging Division	1,516	2,447	-38.0%	-38.0%	0.0%
Total Net Sales	38,997	39,814	-2.1%	2.2%	-4.3%
In relation to the third quarter of 2019, net consolidated revenues compare to a figure equal to €49 million (- 20.4%). That difference was due for -2.9% to the negative exchange rate effect (-€1.4 million) and for -17.5% to
an organic decrease (-€8.5 million). The organic decrease was mainly concentrated in the Medical Division (-

24.3%), as well as in the Industrial SMAs segment (-55.7%), which respectively suffered of the effect of the
pandemic and of the geopolitical tensions between USA and China.
Also the Specialty Chemicals Division recorded an organic decrease (-31.5%) due to a different timing in sales,
as well the Advanced Packaging Division (-33.2%), penalized by the completion of the phase-out of metalized
products, confirming the strategy of repositioning the offering on lacquered products with a higher added value.

Thousands of euro (except %)
			Total	Organic	Exchange rate
	3Q 2020	3Q 2019	difference	change	effect

Business
			(%)	(%)	(%)
Security & Defense	3,357	3,505	-4.2%	-0.9%	-3.3%
Electronic Devices	5,222	3,610	44.7%	50.0%	-5.3%
Healthcare Diagnostics	874	1,023	-14.6%	-12.5%	-2.1%
Lamps	583	995	-41.4%	-39.4%	-2.0%

Advanced Coatings	1,516	2,447	-38.0%	-38.0%	0.0%


In relation to the third quarter of 2019, net consolidated revenues compare to a figure equal to €49 million (- 20.4%). That difference was due for -2.9% to the negative exchange rate effect (-€1.4 million) and for -17.5% to an organic decrease (-€8.5 million). The organic decrease was mainly concentrated in the Medical Division (- 24.3%), as well as in the Industrial SMAs segment (-55.7%), which respectively suffered of the effect of the pandemic and of the geopolitical tensions between USA and China. Also the Specialty Chemicals Division recorded an organic decrease (-31.5%) due to a different timing in sales, as well the Advanced Packaging Division (-33.2%), penalized by the completion of the phase-out of metalized products, confirming the strategy of repositioning the offering on lacquered products with a higher added value.
Thousands of euro (except %)			Total difference (%)	Organic change (%)	Exchange rate effect (%)
Security & Defense	3,357	3,505	-4.2%	-0.9%	-3.3%
Electronic Devices	5,222	3,610	44.7%	50.0%	-5.3%
Healthcare Diagnostics	874	1,023	-14.6%	-12.5%	-2.1%
Lamps	583	995	-41.4%	-39.4%	-2.0%
Thermal Insulated Devices	550	697	-21.1%	-17.9%	-3.2%
Sintered Components for Electronic Devices & Lasers	1,788	1,819	-1.7%	3.3%	-5.0%
SMA Industrial	2,248	5,186	-56.7%	-55.7%	-1.0%
Metallurgy Division	14,622	16,835	-13.1%	-10.0%	-3.1%
Solutions for Vacuum Systems	3,012	2,024	48.8%	52.4%	-3.6%
Vacuum Technology Division	3,012	2,024	48.8%	52.4%	-3.6%
Nitinol for Medical Devices	16,442	22,836	-28.0%	-24.3%	-3.7%
Medical Division	16,442	22,836	-28.0%	-24.3%	-3.7%
Functional Dispensable Products	3,405	5,000	-31.9%	-31.5%	-0.4%
Specialty Chemicals Division	3,405	5,000	-31.9%	-31.5%	-0.4%
Advanced Coatings	1,516	2,269	-33.2%	-33.2%	0.0%
Advanced Packaging Division	1,516	2,269	-33.2%	-33.2%	0.0%
Total Net Sales	38,997	48,964	-20.4%	-17.5%	-2.9%

Including also the revenues of the joint ventures¹ , the total revenues of the Group were equal to €41 million in the third quarter of 2020, substantially in line with the second quarter of 2020 (€42 million). The comparison with the third quarter of 2019 shows a decrease in total revenues equal to -21.4% (€41 million compared to €52.2 million in the third quarter of 2019), mainly due to the decrease in consolidated revenues (-20.4%) and to the

¹ Actuator Solutions (50%), SAES RIAL Vacuum S.r.l. (49%) and Flexterra (46.73%).

Thousands of euro

SAES Group – Additional periodic financial information as at September 30, 2020


decrease in the revenues of Actuator Solutions (-49.2%), despite higher sales of the joint venture SAES RIAL
Vacuum S.r.l. (+45.7%).
Thousands of euro
	3Q 2020	2Q 2020	Difference
Consolidated sales	38,997	39,814	(817)
50% sales of the joint venture Actuator Solutions	1,460	1,701	(241)
49% sales of the joint venture SAES RIAL Vacuum S.r.l.	797	692	105
46.73% sales of the joint venture Flexterra	1	9	(8)
Intercompany eliminations	(195)	(166)	(29)
Other adjustments	(10)	(21)	11
Total revenues of the Group	41,050	42,029	(979)
Thousands of euro
	3Q 2020	3Q 2019	Difference


Consolidated sales	38,997	48,964	(9,967)
50% sales of the joint venture Actuator Solutions	1,460	2,876	(1,416)
49% sales of the joint venture SAES RIAL Vacuum S.r.l.	797	547	250
46.73% sales of the joint venture Flexterra Intercompany eliminations	1 (195)	1 (144)	0 (51)

50% sales of the joint venture Actuator Solutions	1,460	1,701	(241)
49% sales of the joint venture SAES RIAL Vacuum S.r.l.	797	692	105
46.73% sales of the joint venture Flexterra	1	9	(8)
Intercompany eliminations	(195)	(166)	(29)
Other adjustments	(10)	(21)	11

Thousands of euro


50% sales of the joint venture Actuator Solutions	1,460	2,876	(1,416)
49% sales of the joint venture SAES RIAL Vacuum S.r.l.	797	547	250
46.73% sales of the joint venture Flexterra	1	1	0
Intercompany eliminations	(195)	(144)	(51)
Other adjustments	(10)	(16)	6

Consolidated gross profit² amounted to €16 million in the third quarter of 2020, compared to €22.7 million in the corresponding period of 2019. The sharp decline (-29.6%) was mainly due to lower sales, especially in the Medical Division and in the SMA Industrial sector. The decrease in the gross margin³ , down from 46.4% in the third quarter of 2019 to 41% in the current quarter, was also attributable to the lower revenues in those businesses and to the consequent lower economies of scale.

Compared to the second quarter of 2020, consolidated gross profit decreased by 10.5% (from €17.9 million to €16 million), while the gross margin decreased from 44.9% to 41%, due to the already mentioned decrease in sales in the medical business, to which it has to be added the dilutive effect of the higher sales of advanced getters for consumer electronics applications (Specialty Chemicals Division), characterized by a lower margin than the average one of the Group.

Consolidated operating profit amounted to €2.9 million in the quarter, down both compared to €9.5 million in the corresponding period of the previous year and to €4.3 million in the second quarter of 2020. In both cases, the decrease was a consequence of the contraction in gross profit, against substantially unchanged operating expenses.

Consolidated EBITDA⁴ amounted to €5.7 million (14.7% of consolidated revenues) in the third quarter of 2020, compared to €11.9 million (24.4% of revenues) in the third quarter of 2019 and to €7.1 million (17.8% of revenues) in the second quarter of 2020: also in the case of EBITDA, the reduction was mainly attributable to the aforementioned decrease in gross profit.

² Calculated as the difference between net revenues and industrial costs directly and indirectly attributable to the products sold.

³Calculated as the ratio between gross profit and consolidated net revenues

⁴ 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".

SAES Group – Additional periodic financial information as at September 30, 2020


Thousands of euro
	3Q 2020	3Q 2019
Operating income (loss)	2,872	9,478

Depreciation & amortization	2,776	2,449
Write-down of assets	56	0
Bad debt provision accrual (release)	41	1
EBITDA	5,745	11,928
% on sales	14.7%	24.4%
Thousands of euro
	3Q 2020	2Q 2020
Operating income (loss)	2,872	4,302

Depreciation & amortization Write-down of assets	2,776 56	2,652 115
Bad debt provision accrual (release)	41	20

Thousands of euro

Thousands of euro







Thousands of euro
	3Q 2020	2Q 2020
Operating income (loss)	2,872	4,302
Depreciation & amortization	2,776	2,652
Write-down of assets	56	115
Bad debt provision accrual (release)	41	20
EBITDA	5,745	7,089
% on sales	14.7%	17.8%

Consolidated net income amounted to €2.7 million (6.9% of consolidated revenues) in the third quarter of 2020 and this figure included revenues on securities in portfolio totaling €2.1 million (income from evaluation at fair value equal to €1.5 million, as well as coupon income of €0.6 million). In the third quarter of 2019, net income was equal to €8.7 million (17.8% of revenues), while in the second quarter of 2020 it was equal to €5.5 million (13.8% of revenues).

Consolidated net financial position as at September 30, 2020 was positive and equal to €94 million, slightly down compared to €95.6 as at June 30, 2020: the slight decrease, despite the partial recovery of the fair value of securities (+€1.5 million) and the cash flows from operations (+€2.1 million), was mainly a consequence of the recognition of notional financial debts (-€2.5 million) for new leasing contracts (in particular, the lease of the new Milan offices), as well as the capex (-€2.2 million) and the negative exchange rate effect (about -€0.9 million). Please also note coupon collections equal to +€0.6 million and the outlay related to the investment in the EUREKA! venture capital Fund equal to -€0.3 million.

The results of the third quarter are in line with previously announced expectations. In the fourth quarter we begin to see an initial recovery in the medical sector.

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of profit or loss

SAES Group – Additional periodic financial information as at September 30, 2020



CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of profit or loss
Thousands of euro
	3Q 2020	3Q 2019
Total net sales	38,997	48,964
Cost of sales	(23,003)	(26,241)
Gross profit	15,994	22,723
R&D expenses	(2,506)	(2,733)
Selling expenses	(2,525)	(3,155)
G&A expenses Write-down of trade receivables	(7,976) (41)	(7,310) (1)
Total operating expenses	(13,048)	(13,199)
Other income (expenses), net	(74)	(46)
Operating income (loss)	2,872	9,478
Interest and other financial income, net	1,687	2,570
Write-down of financial receivables and other financial assets	(121)	(121)
Income (loss) from equity method evalueted companies	(576)	(343)
Foreign exchange gains (losses), net	(203)	87
Income (loss) before taxes	3,659	11,671
Income taxes	(964)	(2,914)
Net income (loss) from continued operations Income (loss) from discontinued operations	2,695 0	8,757 (34)
Net income (loss) before minority interest	2,695	8,723
Net income (loss) pertaining to minority interest	0	0
Net income (loss) pertaining to the Group	2,695	8,723
Consolidated statement of other comprehensive income
Thousands of euro
	3Q 2020	3Q 2019
Net income (loss) for the period from continued operations	2,695	8,757

Exchange differences on translation of foreign operations	(4,892)	4,545
Exchange differences on equity method evaluated companies	(324)	380
Total exchange differences	(5,216)	4,925
Total components that will be reclassified to the profit (loss) in the future	(5,216)	4,925
Reversal of currency conversion reserve after the liquidation of equity method evaluated companies	278	0
Total components that have been reclassified to the profit (loss)	278	0

Consolidated statement of other comprehensive income

Interest and other financial income, net	1,687	2,570
Write-down of financial receivables and other financial assets	(121)	(121)

Foreign exchange gains (losses), net	(203)	87

Income taxes	(964)	(2,914)





Consolidated statement of other comprehensive income Thousands of euro



Exchange differences on translation of foreign operations	(4,892)	4,545
Exchange differences on equity method evaluated companies	(324)	380
Total exchange differences	(5,216)	4,925
Total components that will be reclassified to the profit (loss) in the future	(5,216)	4,925
Reversal of currency conversion reserve after the liquidation of equity method evaluated companies	278	0
Total components that have been reclassified to the profit (loss)	278	0
Other comprehensive income (loss), net of taxes - continued operations	(4,938)	4,925
Total comprehensive income (loss), net of taxes - continued operations	(2,243)	13,682
Net income (loss) for the period from discontinued operations	0	(34)
Total comprehensive income (loss), net of taxes -discontinued operations	0	(34)
Total comprehensive income (loss), net of taxes	(2,243)	13,648
attributable to:
- Equity holders of the Parent Company	(2,243)	13,648
- Minority interests	0	0

Consolidated Statement of Financial Position

		SAES Group – Additional periodic financial information as at September 30, 2020



Consolidated Statement of Financial Position
Thousands of euro
	September 30,	December 31,
	2020	2019
Property, plant and equipment, net	72,862	70,893
Intangible assets	42,989	45,216
Right of use	5,635	4,617
Securities	131,315	134,673
Other non current assets	14,328	15,775
Current assets	161,684	171,393
Total Assets	428,813	442,567
Shareholders' equity	241,745	252,530
Minority interest in consolidated subsidiaries	0	0
Total Shareholders' Equity	241,745	252,530
Non current liabilities Current liabilities	121,337 65,731	122,621 67,416
Total Liabilities and Shareholders' Equity	428,813	442,567

Consolidated Cash Flows Statement
Thousands of euro

		3Q 2020	3Q 2019
Net income (loss) from continued operations		2,695	8,757
Net income (loss) from discontinued operations		0	(34)
Current income taxes		1,326	1,581
Change in deferred income taxes		(361)	1,322
Depreciation, amortization and write down of non current assets		2,832	2,449
Net loss (gain) on disposal of fixed assets		(12)	0

Consolidated Cash Flows Statement

	September 30,	December 31,
	2020	2019
Property, plant and equipment, net	72,862	70,893
Intangible assets	42,989	45,216
Right of use	5,635	4,617
Securities	131,315	134,673
Other non current assets	14,328	15,775
Current assets	161,684	171,393

Shareholders' equity	241,745	252,530
Minority interest in consolidated subsidiaries	0	0

Non current liabilities	121,337	122,621
Current liabilities	65,731	67,416
Total Liabilities and Shareholders' Equity	428,813	442,567
Consolidated Cash Flows Statement
Thousands of euro
		3Q 2020	3Q 2019
Net income (loss) from continued operations		2,695	8,757
Net income (loss) from discontinued operations Current income taxes		0 1,326	(34) 1,581
Change in deferred income taxes		(361)	1,322
Depreciation, amortization and write down of non current assets		2,832	2,449
Net loss (gain) on disposal of fixed assets		(12)	0
Net gain on purification business disposal		0	34
Interest and other financial (income) expenses, net		(989)	(2,106)
Other non-monetary costs (revenues)		1,700	2,067
		7,191	14,070
Change in operating assets and liabilities		(911)	203
Payments of termination indemnities and similar obligations			(43) (145)
Financial income received, net of payment of interests		(48)	(63)
Taxes paid		(3,623)	(2,049)
Net cash provided by (used by) operating activities		2,566	12,016
Purchase of tangible and intangible assets, net of proceeds from sales		(2,225)	(6,832)
Sale of intellectual property to related parties		0	0
Adjustment on consideration for the purification business disposal		0	(4)
Purchase of securities, net of disinvestments		663	51
Income from securities, net of management fees		533	488
Advances paid for the purchase of investments		0	0
Purchase of other investments		(282)	0
Cash flows provided by (used by) investing activities		(1,311)	(6,297)
Proceeds from financial liabilities, net of repayments		4,864	(732)
Financial receivables repaid (granted) from related parties		(2,562)	0
Interests receipts on financial receivables from related parties			0 0

Dividends payment		0	0
Interests and other expenses paid on loans		(388)	(408)
Repayment of financial liabilities for leased assets (interests included)		(536)	(450)
Purchase of treasury shares and related accessory costs		0	0
Other financial liabilities/assets		(20)	(6)
Cash flows provided by (used by) financing activities		1,358	(1,596)
Effect of exchange rate differences		(1,033)	1,109
Increase (decrease) in cash and cash equivalents		1,580	5,232
Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		31,189	41,866
		32,769	47,098

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 third quarter of 2020, please note that the liquidation process of the companies Actuator Solutions Taiwan Co., Ltd. and Actuator Solutions (Shenzhen) Co., Ltd., wholly owned by Actuator Solutions GmbH and in liquidation since the end of 2019, was completed in September 2020.

Relevant events occurred in the third quarter of 2020

On June 22, 2020, a seven-year rental agreement was signed by the Parent Company, with effect from July 1, 2020, renewable for other seven years under the same conditions, to rent a real estate for office use in Milan, in Piazza Castello 13, intended for the Corporate and Management activities. The annual rent when fully operational was set at €350 thousand, reduced in the first two years of the rental, to facilitate the initial phase.

On July 12, 2020, the revocation of the liquidation status of the company E.T.C. S.r.l., approved by the Shareholders' Meeting of April 15, 2020, took effect. In addition, on that date the company name of E.T.C. S.r.l. has been changed into SAES Innovative Packaging S.r.l. and the corporate purpose of the company has been modified, allowing the direct or indirect assumption of interests or shareholdings in the field of packaging and the scouting of new technologies in the same sector.

With reference to the investment in the EUREKA! venture capital Fund, on July 14, 2020 an amount equal to €118 thousand was paid as subscription fees, set-up costs and management fees for the period July 1 - September 30, 2020. The first investment, with the relative call-up of funds for approximately €164 thousand by SAES, was finalized on September 16, 2020.

On July 16, 2020 SAES Getters International Luxembourg S.A. signed a \$3 million convertible loan in favor of the Flexterra, Inc. joint venture, to be repaid in cash at the end of a predetermined period of one year (maturity date) or before that date, upon the occurrence of certain relevant events, including the liquidation of Flexterra and the change of control. The loan will accrue an annual interest of 8%. The repayment, in addition to cash, may take place in the form of equity should Flexterra make use of a qualified capital increase of at least \$6 million before the maturity date. In that case, SAES Getters International Luxembourg S.A. will obtain a number of new shares equal to the quotient obtained by dividing the balance of the loan at the conversion date for a value equal to 80% of the price per share paid by the other shareholders at the time of the qualified capital increase.

On August 10, 2020, the relative majority shareholder S.G.G. Holding S.p.A. acquired no. 35,000 ordinary shares of SAES Getters S.p.A. in the market. Following this purchase, S.G.G. Holding S.p.A. holds 34.44% of the total ordinary shares, against 45.01% of the voting rights.

On September 3, 2020, during the CIBUS FORUM exhibition at Fiere di Parma, SAES Coated Films S.p.A. and Novamont S.p.A., a leading company in the production of bio-plastics, presented a new project in partnership for the traceability of compostable products, aimed at solving the problem of transferring unsuitable materials to composting plants. In particular, the project focuses on the development of special markers that, inserted into the Novamont's Mater-Bi polymer, will release an optical signal that will allow the identification of suitable materials for composting and the scrap of non-compostable ones. Industrial plants will thus be able to benefit from a higher process efficiency, as well as guarantee a higher purity of the compost.

Reclassifications of the economic figures of 2019

Metallurgy Division (that coincides with the previous Industrial operating sector, excluding the Solutions for Vacuum Systems Business, the Functional Chemical Systems Business and the advanced getters for the electronic consumers market, the latter previously classified within the Electronic Devices Business);
Vacuum Technology Division (coinciding with the Solutions for Vacuum Systems Business operating unit, included in the Industrial operating sector);
Medical Division (unchanged);
Specialty Chemicals Division (that means advanced getters for the electronic consumers market, classified within the Electronic Devices Business in the previous year, in addition to the Functional Chemical Systems sector and the Flexterra business, the latter previously not allocated);

	As at September 30, 2020 the Group has no forward sale contracts in place.
Reclassifications of the economic figures of 2019
"Divisions"): included in the Industrial operating sector); - Medical Division (unchanged); sector and the Flexterra business, the latter previously not allocated); - Advanced Packaging Division (unchanged). homogeneous comparison with 2020. Reclassifications of the income statement figures as of September 30, 2019 Thousands of euro Metallurgy Division	Starting from January 1, 2020, the Group is organized into the following technological areas of competence (or - Metallurgy Division (that coincides with the previous Industrial operating sector, excluding the Solutions for Vacuum Systems Business, the Functional Chemical Systems Business and the advanced getters for the electronic consumers market, the latter previously classified within the Electronic Devices Business); - Vacuum Technology Division (coinciding with the Solutions for Vacuum Systems Business operating unit, - Specialty Chemicals Division (that means advanced getters for the electronic consumers market, classified within the Electronic Devices Business in the previous year, in addition to the Functional Chemical Systems The economic figures of 2019 have been reclassified according to the new operating structure, to allow a Vacuum Technology Medical Specialty Chemicals Advanced Packaging Not Allocated TOTAL Division Division Division Division
9M 2019 reclassified 9M 2019 Reclass. 9M 2019 Total net sales 66,059 (16,007) 50,052 0 Cost of sales (32,636) 9,019 (23,617) 0 Gross profit (loss) 33,423 (6,988) 26,435 0 Operating expenses and other income (expenses) (12,140) 3,973 (8,167) 0 Operating income (loss) 21,283 (3,015) 18,268 0	9M 2019 reclassified 9M 2019 reclassified 9M 2019 reclassified 9M 2019 reclassified 9M 2019 reclassified Reclass. 9M 2019 Reclass. 9M 2019 Reclass. 9M 2019 Reclass. 9M 2019 Reclass. 9M 2019 Reclass. 7,546 7,546 64,108 0 64,108 0 8,461 8,461 7,284 0 7,284 0 0 0 137,451 (3,366) (3,366) (37,581) 0 (37,581) 0 (5,653) (5,653) (6,691) 0 (6,691) 0 0 0 (76,908) 4,180 4,180 26,527 0 26,527 0 2,808 2,808 593 0 593 0 0 0 60,543 (2,726) (2,726) (7,143) 0 (7,143) 0 1,046 1,046 (2,615) 0 (2,615) (15,755) (2,293) (18,048) (37,653) 1,454 1,454 19,384 0 19,384 0 3,854 3,854 (2,022) 0 (2,022) (15,755) (2,293) (18,048) 22,890	9M 2019 reclassified 0 137,451 0 (76,908) 0 60,543 0 (37,653) 0 22,890
Reclassifications of the income statement figures of third quarter 2019 Thousands of euro Metallurgy Division 3Q 2019 reclassified 3Q 2019 Reclass. 3Q 2019 Total net sales 23,859 (7,024) 16,835 0 Cost of sales (11,254) 3,648 (7,606) 0 Gross profit (loss) 12,605 (3,376) 9,229 0 Operating expenses and other income (expenses) (4,036) 1,403 (2,633) 0 Operating income (loss) 8,569 (1,973) 6,596 0 Net Sales by Business and by Geographic Location of Customers	Vacuum Technology Medical Specialty Chemicals Advanced Packaging Not Allocated TOTAL Division Division Division Division 3Q 2019 reclassified 3Q 2019 reclassified 3Q 2019 reclassified 3Q 2019 reclassified 3Q 2019 reclassified Reclass. 3Q 2019 Reclass. 3Q 2019 Reclass. 3Q 2019 Reclass. 3Q 2019 Reclass. 3Q 2019 Reclass. 2,024 2,024 22,836 0 22,836 0 5,000 5,000 2,269 0 2,269 0 0 0 48,964 (697) (697) (12,851) 0 (12,851) 0 (2,951) (2,951) (2,136) 0 (2,136) 0 0 0 (26,241) 1,327 1,327 9,985 0 9,985 0 2,049 2,049 133 0 133 0 0 0 22,723 (831) (831) (2,587) 0 (2,587) 0 (554) (554) (876) 0 (876) (5,746) (18) (5,764) (13,245) 496 496 7,398 0 7,398 0 1,495 1,495 (743) 0 (743) (5,746) (18) (5,764) 9,478	3Q 2019 reclassified 0 48,964 0 (26,241) 0 22,723 0 (13,245) 0 9,478
Metallurgy Division
Security & Defence	Getters and metal dispensers for electronic vacuum devices

							Specialty Chemicals Division			Advanced Packaging Division			Not Allocated

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	Cathodes and materials for thermal dissipation in electronic tubes, lasers and solid-state devices
SMA Industrial	Shape memory alloys actuator devices for the industrial sector (domotics, white goods industry, consumer electronics, automotive and luxury sector)
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 organic and hybrid electronics, photonics and implantable medical devices
Advanced Packaging Division
Advanced Coatings	Lacquers and advanced plastic films for the sustainable packaging sector

Thousands of euro (except %)

SAES Group – Additional periodic financial information as at September 30, 2020 Thousands of euro (except %)


				Total	Organic	Exchange rate
Business	3Q 2020		3Q 2019	difference	change	effect
				(%)	(%)	(%)
Security & Defense		3,357	3,505	-4.2%	-0.9%	-3.3%
Electronic Devices		5,222	3,610	44.7%	50.0%	-5.3%
Healthcare Diagnostics Lamps		874 583	1,023 995	-14.6% -41.4%	-12.5% -39.4%	-2.1% -2.0%

Thermal Insulated Devices		550	697	-21.1%	-17.9%	-3.2%
Sintered Components for Electronic Devices & Lasers SMA Industrial		1,788 2,248	1,819 5,186	-1.7% -56.7%	3.3% -55.7%	-5.0% -1.0%
Metallurgy Division		14,622	16,835	-13.1%	-10.0%	-3.1%
Solutions for Vacuum Systems		3,012	2,024	48.8%	52.4%	-3.6%
Vacuum Technology Division		3,012	2,024	48.8%	52.4%	-3.6%
Nitinol for Medical Devices		16,442	22,836	-28.0%	-24.3%	-3.7%
Medical Division		16,442	22,836	-28.0%	-24.3%	-3.7%
Functional Dispensable Products		3,405	5,000	-31.9%	-31.5%	-0.4%
Specialty Chemicals Division		3,405	5,000	-31.9%	-31.5%	-0.4%
Advanced Coatings		1,516	2,269	-33.2%	-33.2%	0.0%
Advanced Packaging Division		1,516	2,269	-33.2%	-33.2%	0.0%
Total Net Sales		38,997	48,964	-20.4%	-17.5%	-2.9%

Consolidated Net Sales by Geographic Location of Customer
Thousands of euro
Geographic Area	3Q 2020	3Q 2019
Italy	740		1,057
European countries	6,851		7,754
North America	22,151		25,579
Japan	1,443		1,428
South Korea	494		409
China	6,192 840		10,952 1,520
			265
Rest of Asia Rest of the World	286

Thousands of euro Consolidated Net Sales by Geographic Location of Customer

Italy	740	1,057
European countries	6,851	7,754
North America	22,151	25,579
Japan	1,443	1,428
South Korea	494	409

Rest of Asia	840	1,520
Rest of the World	286	265

In relation to the third quarter of 2019, net consolidated revenues compare to a figure equal to €49 million (- 20.4%). That difference was due for -2.9% to the negative exchange rate effect (-€1.4 million) and for -17.5% to an organic decrease (-€8.5 million). The organic decrease was mainly concentrated in the Medical Division (- 24.3%), as well as in the Industrial SMAs segment (-55.7%), which respectively suffered of the effect of the pandemic and of the geopolitical tensions between USA and China.

Also the Specialty Chemicals Division recorded an organic decrease (-31.5%) due to a different timing in sales, as well the Advanced Packaging Division (-33.2%), penalized by the completion of the phase-out of metalized products, confirming the strategy of repositioning the offering on lacquered products with a higher added value.

Including also the revenues of the joint ventures⁵ , the total revenues of the Group were equal to €41 million in the third quarter of 2020. The comparison with the third quarter of 2019 shows a decrease in total revenues equal to -21.4% (€41 million compared to €52.2 million in the third quarter of 2019), mainly due to the decrease in consolidated revenues (-20.4%) and to the decrease in the revenues of Actuator Solutions (-49.2%), despite higher sales of the joint venture SAES RIAL Vacuum S.r.l. (+45.7%).

⁵ Actuator Solutions (50%), SAES RIAL Vacuum S.r.l. (49%) and Flexterra (46.73%).

SAES Group – Additional periodic financial information as at September 30, 2020


Thousands of euro

	3Q 2020	3Q 2019	Difference
Consolidated sales	38,997	48,964	(9,967)
50% sales of the joint venture Actuator Solutions	1,460	2,876	(1,416)
49% sales of the joint venture SAES RIAL Vacuum S.r.l. 46.73% sales of the joint venture Flexterra	797 1	547 1	250 0
Intercompany eliminations	(195)	(144)	(51)
Other adjustments	(10)	(16)	6
Total revenues of the Group	41,050	52,228	(11,178)

Information by operating segment
Consolidated statement of profit or loss by Business Unit
Thousands of euro Metallurgy Vacuum Technology Division Division	Medical Specialty Chemicals Division Division	Advanced Packaging Division	Not Allocated TOTAL
3Q 2020 3Q 2019 3Q 2020 3Q 2019	3Q 2020 3Q 2019 3Q 2020 3Q 2019	3Q 2020 3Q 2019	3Q 2020 3Q 2019 3Q 2020
Total net sales 14,622 16,835 3,012 2,024 Cost of sales (7,722) (7,606) (1,146) (697)	16,442 22,836 3,405 (10,336) (12,851) (2,365)	5,000 1,516 2,269 (2,951) (1,432) (2,136)	0 0 38,997 (2) 0 (23,003)
Gross profit (loss) 6,900 9,229 1,866 1,327 Operating expenses and other income (expenses) (2,617) (2,633) (832) (831)	6,106 9,985 1,040 (1,926) (2,587) (446)	2,049 84 133 (554) (679) (876)	(2) 0 15,994 (6,622) (5,764) (13,122)
Operating income (loss) 4,283 6,596 1,034 496	4,180 7,398 594	1,495 (595) (743)	(6,624) (5,764) 2,872
Metallurgy Division

Consolidated revenues of the Metallurgy Division were equal to €14.6 million in the third quarter of 2020,
compared to €16.8 million in the corresponding quarter of 2019 (-13.1%). The trend of the euro against the main

Information by operating segment

						Specialty Chemicals Division		Advanced Packaging Division

Metallurgy Division

Consolidated revenues of the Metallurgy Division were equal to €14.6 million in the third quarter of 2020, compared to €16.8 million in the corresponding quarter of 2019 (-13.1%). The trend of the euro against the main foreign currencies resulted in a negative exchange rate effect equal to -3.1%, net of which sales decreased organically by 10%.

An organic growth was recorded only in the following businesses:

the electronic devices sector (Electronic Device Business, +50%), driven by infrared applications in thermal sensors for temperature measurements and thermography, also favored by the recent Covid-19 crisis;
the Sintered Components for Electronic Devices & Lasers Business (+3.3%), thanks to higher sales in the thermal dissipation sector for semiconductor lasers, that offset a decrease in the electron-emitting products segment, penalized by the Covid-19 pandemic and by production capacity issues, which limited shipments. All the other sectors recorded an organic decrease:
the sector of shape memory alloys for industrial applications (SMA Industrial Business, -55.7%), was penalized by the Covid-19 effect on the automotive sector and by the combined effect of Covid-19 and of the international tensions in the consumer electronics sector;
the security and defense sector (Security & Defense Business, -0.9%), was substantially stable, thanks to the sales of getter components for infrared sensors and night vision systems for defense applications;
the medical diagnostics business (Healthcare Diagnostics Business, -12.5%), was down for the slowdown in demand for porous getters for diagnostic imaging systems, because of the production of stock in the first six months of the year;
the thermal insulation sector (Thermal Insulated Devices Business, -17.9%) and the lamp business (Lamps Business, -39.4%) continued to decrease, the former due to the slowdown in the demand for vacuum bottles and insulated pipes for oil applications due to Covid-19; the latter because of the structural crisis in the market for fluorescent and discharge intensity lamps.

The table below shows the revenues in the third quarter of 2020 related to the various business areas, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019.

SAES Group – Additional periodic financial information as at September 30, 2020
			Total	Organic	Exchange rate
Thousands of euro (except %) Business	3Q 2020	3Q 2019	difference	change	effect
			(%)	(%)	(%)
Security & Defense	3,357	3,505	-4.2%	-0.9%	-3.3%
Electronic Devices	5,222	3,610	44.7%	50.0%	-5.3%
Healthcare Diagnostics	874	1,023	-14.6%	-12.5%	-2.1%
Lamps	583	995	-41.4%	-39.4%	-2.0%
Thermal Insulated Devices Sintered Components for Electronic Devices & Lasers	550 1,788	697 1,819	-21.1% -1.7%	-17.9% 3.3%
SMA Industrial	2,248	5,186	-56.7%	-55.7%	-3.2% -5.0% -1.0%

Vacuum Technology Division

Thousands of euro (except %)
------------------------------	--	--

Gross profit of the Metallurgy Division was equal to €6.9 million, compared to €9.2 million in the third quarter of 2019. The gross margin decreased from 54.8% to 47.2%. The decrease in both absolute value and percentage terms of revenues was almost entirely attributable to the industrial SMA sector, heavily penalized by the Covid 19 effect, as well as by the aforementioned international tensions.
Operating income of the Metallurgy Division amounted to €4.3 million, down by -35.1% compared to €6.6 million in the third quarter of 2019, due to the reduction in both revenues and gross profit, against unchanged operating expenses. The operating margin was also down, from 39.2% to 29.3%.
Vacuum Technology Division
Consolidated revenues of the Vacuum Technology Division amounted to €3 million in the third quarter of 2020, up by 48.8% compared to €2 million in the corresponding quarter of 2019. The exchange rate effect was negative and equal at -3.6%, net of which sales organically increased by 52.4%: the third quarter benefited from higher sales in the particle accelerators and electronic microscopes sectors, as well as from the recovery in sales of pumps to research laboratories, mainly in China. The table below shows the revenues in the third quarter of 2020, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019. Thousands of euro (except %)
Business			Total	Organic	Exchange rate
	3Q 2020	3Q 2019	difference	change	effect

Solutions for Vacuum Systems	3,012	2,024	(%) 48.8%	(%) 52.4%	(%) -3.6%

Gross profit of the Vacuum Technology Division amounted to €1.9 million in the third quarter of 2020, showing a strong growth (+40.6%) compared to €1.3 million in the corresponding period of 2019. Instead the gross margin was slightly down (from 65.6% to 62%), due to a different product mix.

Operating income of the Vacuum Technology Division was equal to €1 million, doubled compared to €0.5 million in the third quarter of 2019, as a result of the increase in revenues. The operating margin increased from 24.5% to 34.3%.

Medical Division

Consolidated revenues of the Medical Division amounted to €16.4 million in the third quarter of 2020, down by 28% compared to €22.8 million in the corresponding period of 2019. The exchange rate effect was negative and equal to -3.7%, net of which the organic variation was equal to -24.3%, mainly as a consequence of the strong reduction in the demand for medical devices following the suspension of elective surgeries by hospitals in order to focus resources on Covid-19 cases.

The table below shows the revenues in the third quarter of 2020, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019.

	SAES Group – Additional periodic financial information as at September 30, 2020




Thousands of euro (except %)
			Total	Organic	Exchange rate
Business	3Q 2020	3Q 2019	difference	change	effect
			(%)	(%)	(%)
Nitinol for Medical Devices	16,442	22,836	-28.0%	-24.3%	-3.7%

Gross profit of the Medical Division was equal to €6.1 million, down by 38.8% compared to €10 million in the third quarter of 2019, mainly due to the effect of the Covid-19 pandemic on revenues and to the costs related to the construction of a new tube production department in Bethel. Again, for the aforementioned reasons, the gross margin decreased from 43.7% to 37.1%

The third quarter of 2020 ended with an operating income equal to €4.2 million, compared to €7.4 million in the corresponding period of the previous year: despite the favorable effect of exchange rates on operating expenses in dollars, both the operating income and the operating margin (from 32.4% to 25.4%) decreased, as a consequence of the decrease in gross profit.

Specialty Chemicals Division

Consolidated revenues of the Specialty Chemicals Division were equal to €3.4 million in the third quarter of 2020, compared to €5 million in the corresponding period of 2019. The exchange rate effect was negligible (- 0.4%). The organic decrease, equal to -31.5%, was due to the different timing of orders in the segment of advanced components for the consumer electronics market. However, the latter recorded a significant recovery compared to the second quarter of 2020, with nine-month sales substantially in line with those of the previous year. In the sector of dispensable products for passive matrix OLED applications, the consolidation trend was confirmed, with regular orders of dispensable dryers in China and Taiwan. Business 3Q 2020 3Q 2019

The table below shows the revenues in the third quarter of 2020, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019.

			Total difference (%)	Organic change (%)	Exchange rate effect (%)
Functional Dispensable Products	3,405	5,000	-31.9%	-31.5%	-0.4%
Specialty Chemicals Division	3,405	5,000	-31.9%	-31.5%	-0.4%

Thousands of euro (except %)

Gross profit of the Specialty Chemicals Division was equal to €1 million in the third quarter of 2020, compared to €2 million in the corresponding period of 2019, following the decrease in revenues. The gross margin decreased from 41% to 30.5%, penalized by the increased commercial pressure, as well as by the already mentioned decrease in revenues.

Operating income of the Specialty Chemicals Division amounted to €0.6 million compared to €1.5 million in the third quarter of 2019, while the operating margin decreased from 29.9% to 17.4%: the decrease in gross profit was also reflected in the operating indicators, only partially offset by a slight reduction in general and administrative expenses.

Advanced Packaging Division

Consolidated revenues of the Advanced Packaging Division in the third quarter of 2020 amounted to €1.5 million, compared to €2.3 million in the corresponding period of 2019. The two figures are not comparable, since the offer of the third quarter of this year no longer included traditional metallized products, whose production was suspended at the end of June. In fact, sales in the third quarter of 2020 are completely attributable to innovative lacquered products, intended for recyclable and compostable applications, for which a significant double-digit growth was recorded compared to the third quarter of 2019.

	SAES Group – Additional periodic financial information as at September 30, 2020




The table below shows the revenues in the third quarter of 2020, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019.

Thousands of euro (except %)
			Total	Organic	Exchange rate
Business	3Q 2020	3Q 2019	difference	change	effect
Advanced Coatings	1,516	2,269	(%) -33.2%	(%) -33.2%	(%) 0.0%

Gross profit of the Advanced Packaging Division was equal to €84 thousand (5.5% of revenues), compared to €133 thousand (5.9% of revenues) in the corresponding period of 2019. Despite the decrease in sales, the gross margin was substantially unchanged, thanks to the replacement of metallized products with lacquered ones, characterized by a higher industrial added value.

The third quarter of 2020 ended with an operating loss of -€0.6 million, more limited compared to -€0.7 million euro in the corresponding quarter of the previous year as a result of the reduction in operating expenses, in particular selling expenses, which reflected the trend in revenues.

Not Allocated Costs

It includes costs related to basic research processes, aimed at the diversification into 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).

Operating costs amounted to €6.6 million in the third quarter of 2020, compared to €5.7 million in the corresponding period of the previous year. The increase was mainly attributable to the extraordinary expenses⁶ that the Group had to incur for the Covid-19 pandemic (about €0.2 million) and consultancy costs, especially in the IT area for the implementation of new information systems.

Economic results of the third quarter of 2020

Consolidated gross profit⁷ amounted to €16 million in the third quarter of 2020, compared to €22.7 million in the corresponding period of 2019. The sharp decline (-29.6%) was mainly due to lower sales, especially in the Medical Division and in the SMA Industrial sector. The decrease in the gross margin⁸ , down from 46.4% in the third quarter of 2019 to 41% in the current quarter, was also attributable to the lower revenues in those businesses and to the consequent lower economies of scale.

Consolidated operating profit amounted to €2.9 million in the quarter, down compared to €9.5 million in the corresponding period of the previous year, as consequence of the contraction in gross profit, against substantially unchanged operating expenses.

Consolidated EBITDA⁹ amounted to €5.7 million (14.7% of consolidated revenues) in the third quarter of 2020, compared to €11.9 million (24.4% of revenues) in the third quarter of 2019: also in the case of EBITDA, the reduction was mainly attributable to the aforementioned decrease in gross profit.

6 In particular, costs of sanitation and adaptation of accesses and spaces in order to guarantee the safety of workers, as well as health costs for prevention and consultancy and training costs linked to the pandemic.

⁷ Calculated as the difference between net revenues and industrial costs directly and indirectly attributable to the products sold.

⁸Calculated as the ratio between gross profit and consolidated net revenues

⁹ 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".

SAES Group – Additional periodic financial information as at September 30, 2020


Thousands of euro
	3Q 2020	3Q 2019
Operating income (loss)	2,872	9,478
Depreciation & amortization	2,776	2,449
Write-down of assets	56	0
Bad debt provision accrual (release)	41	1
EBITDA % on sales	5,745 14.7%	11,928 24.4%

Consolidated operating expenses were equal €13 million (33.5% of revenues) in the third quarter of 2020, compared to €13.2 million (27% of revenues) in the corresponding period of 2019: the decrease in selling expenses (lower travel expenses and lower marketing costs as a result of the Covid-19 pandemic, as well as a reduction in commissions to third parties and transport costs, due to lower revenues) was offset by higher general and administrative expenses (higher consultancy costs in the IT area, as well as extraordinary expenses for the management of the Covid-19 emergency¹⁰).

The net balance of the other income (expenses) was negative and equal to -€74 thousand and it didn't show any significant change compared to the negative balance equal to -€46 thousand in the corresponding quarter of 2019.

The net balance of financial income and expenses was positive and equal to €1.6 million, compared to a positive balance of €2.4 million in the corresponding period of 2019. The decrease was mainly attributable to the lower income deriving from the fair value evaluation of the securities in portfolio (total income of €1.5 million in the third quarter of 2020 and €2.3 million in the corresponding period of 2019).

The item included coupon income (€0.5 million in both periods, net of management fees) as well as interest expense on short and long-term loans and bank commissions on the credit lines held by the Italian companies of the Group (€0.5 million in the third quarter of 2020, compared to €0.4 million in the corresponding period of 2019).

In the current quarter, the result deriving from the evaluation with the equity method of the joint ventures was overall negative and equal to -€0.6 million (attributable both to the joint venture Flexterra for -€0.4 million and to the joint venture SAES RIAL Vacuum S.r.l. for +€0.1 million and also including the release to the income statement, equal to -€0.3 million, of the conversion reserve following the liquidation of the Asian subsidiaries of Actuator Solutions GmbH). This figure compares with a negative result equal to -€0.3 million in the corresponding quarter of 2019 (attributable both to the joint venture Flexterra for -€0.5 million and to the joint venture SAES RIAL Vacuum S.r.l. for +€0.2 million).

The sum of the exchange rate differences recorded a negative balance amounting to -€0.2 million in the third quarter of 2020, compared to a positive balance equal to +€0.1 million in the corresponding period of 2019. Both results were mainly attributable to the effect of the fluctuations of the dollar against the euro on commercial transactions, also intra-group ones.

Consolidated income before taxes amounted to €3.7 million in the third quarter of 2020, strongly decreased compared to €11.7 million in the third quarter of 2019, mainly due to the decrease in gross profit and to the lower income from financial management activities.

Income taxes amounted to €1 million in the quarter, compared to €2.9 million in the corresponding period of the 2019, in line with the decrease in the operating results.

Consolidated net income was equal to €2.7 million (6.9% of consolidated revenues) in the third quarter of 2020, compared to a net income of €8.7 million (17.8% of consolidated revenues) in the third quarter of 2019.

¹⁰ Extraordinary expenses of approximately €0.2 million in the third quarter of 2020.

Net financial position

Net financial position
Consolidated net financial position as at September 30, 2020 was positive and equal to €94 million and
compares with a net consolidated financial position as at 31 December 2019 equal to €115.3 million. The
decrease (-€21.3 million) was attributable to the write-down of securities in the portfolio (-€4.9 million), to
investments in tangible and intangible assets (-€9.2 million), as well as to the disbursement for dividends paid at
the end of April 2020 (-€9.2 million) and to the notional financial payables for new leasing contracts entered into
during the period (-€2.8 million). These negative items were only partially offset by the operating cash flow (+€4.3 million).
In addition, please note that investment activities included monetary income from securities (+€1.9 million), net
of management fees paid in the period (-€0.2 million) and the investment in the EUREKA! venture capital Fund
(-€0.3 million). Finally, exchange rates negatively contributed for an amount of -€0.9 million.

Consolidated Net Financial Position
Thousands of euro
	September 30,	June 30,	March 31,	December 31,
	2020	2020	2020	2019
Cash on hands	12	11	10	11
Cash equivalents	32,912	31,212	45,941	48,623
Cash and cash equivalents	32,924	31,223	45,951	48,634
Related parties financial assets, current	2,606	1	0	1
Securities - short term	69,798	70,125	67,767	70,779
Current financial assets	72,404	70,126	67,767	70,780
Bank overdraft	(33,223)	(27,066)	(27,282)	(27,195)
Current portion of long term debt	(5,231)	(5,237)	(5,629)	(5,365)
Derivative financial instruments	(39)	(40)	(47)	(50)
Other current financial liabilities	(1,344)	(1,679)	(1,889)	(900)
Current financial liabilities for leases	(1,957)	(1,771)	(1,882)	(1,876)
Current financial liabilities	(41,794)	(35,793)	(36,729)	(35,386)
Current net financial position	63,534	65,556	76,989	84,028
Related parties financial assets, non current	49	49	49	49
Securities - long term	131,415	130,236	128,129	134,673
Non current financial assets	131,464	130,285	128,178	134,722
Long term debt, net of current portion	(97,309)	(98,125)	(99,933)	(100,724)
Non current financial liabilities for leases	(3,700)	(2,072)	(2,436)	(2,710)
Non current financial liabilities	(101,009)	(100,197)	(102,369)	(103,434)
Non current net financial position	30,455	30,088	25,809	31,288
	93,989	95,644
Net financial position			102,798	115,316

Consolidated Net Financial Position

The slight decrease compared to June 30, 2020, despite the partial recovery of the fair value of securities (+€1.5 million) and the cash flows from operations (+€2.1 million), was mainly a consequence of the recognition of notional financial debts (-€2.5 million) for new leasing contracts (in particular, the lease of the new Milan offices), as well as the capex (-€2.2 million) and the negative exchange rate effect (about -€0.9 million). Please also note coupon collections equal to +€0.6 million and the outlay related to the investment in the EUREKA! venture capital Fund equal to -€0.3 million.

JANUARY – SEPTEMBER 2020

Net Sales by Business and by Geographic Location of Customers

Consolidated revenues amounted to €128.1 million in the first nine months of 2020, down by 6.8% compared to €137.5 million in the corresponding period of 2019. The exchange rate effect was slightly negative (-0.1%); the organic decrease was equal to -6.7%.

The decrease was mainly concentrated in the Medical Division, penalized by the postponement of elective surgeries due to Covid-19 and in the industrial SMA sector (within the Metallurgy Division), which suffered a negative impact due to the pandemic, in addition to the effect of the geopolitical tensions between USA and

China. These significant reductions were only partially offset by increases, even significant ones, recorded in the security and defense sector (getters for infrared sensors and night vision systems) and in the electronic devices sector (getters for thermal sensors for measuring temperature and thermography, whose sales were favored by the Covid-19 crisis). Also the Vacuum Technology Division ended the first nine months with a revenue increase, driven by higher sales in the particle accelerator and analytical instrumentation sectors. The table below shows the revenues in the first nine months of 2020 related to the various business areas, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2019. Thousands of euro (except %)



Business	9M 2020	9M 2019	Total difference	Organic change	Exchange rate effect
			(%)	(%)	(%)
Security & Defense	12,881	9,870	30.5%	30.9%	-0.4%
Electronic Devices	12,924	11,117	16.3%	16.9%	-0.6%
Healthcare Diagnostics		3,626 3,473	4.4%	4.4%	0.0%
Lamps		2,529 3,269	-22.6%	-22.5%	-0.1%
Thermal Insulated Devices		2,224 2,530	-12.1%	-12.4%	0.3%
Sintered Components for Electronic Devices & Lasers		5,521 6,361	-13.2%	-13.1%	-0.1%
SMA Industrial		8,456 13,432	-37.0%	-36.9%	-0.1%
Metallurgy Division	48,161	50,052	-3.8%	-3.6%	-0.2%
Solutions for Vacuum Systems		8,371 7,546	10.9%	10.9%	0.0%
Vacuum Technology Division		8,371 7,546	10.9%	10.9%	0.0%
Nitinol for Medical Devices	56,587	64,108	-11.7%	-11.6%	-0.1%
Medical Division	56,587	64,108	-11.7%	-11.6%	-0.1%
Functional Dispensable Products		8,429 8,461	-0.4%	-0.4%	0.0%
Specialty Chemicals Division		8,429 8,461	-0.4%	-0.4%	0.0%
Advanced Coatings		6,548 7,284	-10.1%	-10.1%	0.0%
Advanced Packaging Division Total Net Sales	128,096	6,548 7,284 137,451	-10.1% -6.8%	-10.1% -6.7%	0.0% -0.1%

Consolidated Net Sales by Geographic Location of Customer Thousands of euro
Geographic Area	9M 2020	9M 2019

Italy European countries	2,748	2,740
	24,175 70,533	25,202 77,438
	5,366	4,073
North America		1,010
Japan
South Korea	1,370
China	19,043	22,237
Rest of Asia Rest of the World	3,727 1,134	3,602 1,149

Thousands of euro (except %)

Consolidated Net Sales by Geographic Location of Customer

Italy	2,748	2,740
European countries	24,175	25,202
North America	70,533	77,438
Japan	5,366	4,073
South Korea	1,370	1,010
China	19,043	22,237
Rest of Asia	3,727	3,602
Rest of the World	1,134	1,149

Thousands of euro

Consolidated Net Sales by Geographic Location of Customer
Thousands of euro

Italy	2,748	2,740
European countries	24,175	25,202
North America	70,533	77,438
Japan	5,366	4,073
South Korea	1,370	1,010
China	19,043	22,237
Rest of Asia	3,727	3,602
	1,134	1,149
Rest of the World
Total revenues of the Group were equal to €134.6 million in the first nine months of 2020, compared to €146.5 million in the first nine months of 2019, down by 8.1% mainly due to the reduction in consolidated revenues (- 6.8%) and to the decrease in the turnover of Actuator Solutions (-35.4%), despite the higher sales of the joint venture SAES RIAL Vacuum S.r.l. (+48%).
Thousands of euro
		9M 2020	9M 2019	Difference
Consolidated sales		128,096	137,451	(9,355)

50% sales of the joint venture Actuator Solutions		5,400	8,364	(2,964)
49% sales of the joint venture SAES RIAL Vacuum S.r.l.		1,665	1,125	540
46.73% sales of the joint venture Flexterra		24	7	17
Intercompany eliminations		(613)	(424)	(189)
Other adjustments Total revenues of the Group		0 134,572	(50) 146,473	50 (11,901)

Information by operating segment

		SAES Group – Additional periodic financial information as at September 30, 2020






Information by operating segment

Consolidated statement of profit or loss by Business Unit Thousands of euro
	Metallurgy	Vacuum Technology Division	Medical	Specialty Chemicals Division	Advanced Packaging Division	Not Allocated		TOTAL
	Division		Division
Total net sales	9M 2020 9M 2019 48,161 50,052	9M 2020 9M 2019 8,371 7,546	9M 2020 9M 2019 56,587 64,108	9M 2020 9M 2019 8,429 8,461	9M 2020 9M 2019 6,548 7,284	9M 2020 0	9M 2019 9M 2020 0 128,096	9M 2019 137,451
Cost of sales	(24,176) (23,617)	(3,220) (3,366)	(34,630) (37,581)	(5,993) (5,653)	(5,855) (6,691)	(5)	0 (73,879)	(76,908)
Gross profit (loss)	23,985 26,435	5,151 4,180	21,957 26,527	2,436 2,808	693 593	(5)	0 54,217	60,543
Operating expenses and other income (expenses) Operating income (loss)	(8,481) (8,167) 15,504 18,268	(2,700) (2,726) 2,451 1,454	(6,219) (7,143) 15,738 19,384	(1,287) 1,046 1,149 3,854	(2,413) (2,615) (1,720) (2,022)	(19,102) (19,107)	(18,048) (40,202) (18,048) 14,015	(37,653) 22,890

Economic results of the first nine months of 2020


Consolidated gross profit amounted to €54.2 million in the first nine months of 2020, compared to €60.5
million in the corresponding months of 2019. The decrease (-10.4%) was due to the aforementioned lower sales,

Economic results of the first nine months of 2020

Consolidated gross profit amounted to €54.2 million in the first nine months of 2020, compared to €60.5 million in the corresponding months of 2019. The decrease (-10.4%) was due to the aforementioned lower sales, mainly in the Medical Division and in the SMA sector for industrial applications (within the Metallurgy Division). For the same reasons, also the gross margin decreased from 44% to 42.3%; in addition, please note a decrease in the gross margin of the Specialty Chemicals Division, penalized by the increased commercial pressure in the consumer electronics business.

Consolidated operating income amounted to €14 million (10.9% of consolidated revenues) in the first nine months of 2020, down when compared to €22.9 million (16.7% of consolidated revenues) in the corresponding period of the previous year. Excluding the non-recurring transactions recognized under the item "Other income (expenses), net", respectively as income in 2019 (capital gain from related party equal to +€2.3 million for the sale of OLET patents owned by E.T.C. S.r.l. in liquidation to the joint venture Flexterra, Inc.) and as expenses in the current period (donations to research institutions and hospitals to face the Covid-19 crisis, equal to approximately -€0.7 million), the reduction in consolidated operating profit would have been equal to €5.9 million (-28.7%): the decrease in gross profit was offset by the reduction in consolidated operating expenses (€39.4 million in the first nine months of 2020, compared to €40 million in the corresponding period of 2019). In particular, operating expenses decreased by -€0.6 million: the decrease was mainly concentrated in selling expenses (-12.4%, due to lower travel expenses and lower marketing costs as a result of the Covid-19 pandemic, as well as a reduction in commissions to third parties due to lower sales of SMA educated wires). There was also a slight organic decrease (-5.7%) in research and development expenses, due to lower consultancy and lower patent management costs. On the other hand, general and administrative expenses increased (+4.7%) due to extraordinary costs, equal to approximately €0.5 million, incurred for the management of the Covid-19 emergency (in particular, sanitation costs and adaptation of accesses and spaces in order to guarantee the safety of workers, as well as health prevention costs and consultancy and training costs). Excluding the latter, general and administrative expenses would have increased only by €0.5 million (higher consultancy costs, both for special projects and for the development of information systems, only partially offset by lower severance¹¹ and by the reduction of travel expenses and savings related to the reduced physical presence of staff, thanks to the use of smart working).

Consolidated EBITDA amounted to €22.2 million in the first nine months of 2020 (17.3% of revenues), compared to €29.9 million in the corresponding period of 2019 (21.7% of revenues): the reduction was attributable to both the aforementioned non-recurring revenue items in 2019 (capital gain from related party equal to +€2.3 million for the sale of the OLET patents owned by E.T.C. S.r.l. in liquidation to the joint venture Flexterra, Inc.) and non-recurring expenses recorded in the current period (donations to research institutions and hospitals to face the Covid-19 crisis, equal to about -€0.7 million), as well as to the decrease in gross profit.

¹¹ €0.3 million in 2019, related to the conclusion of the process to reduce the staff of the Parent Company that began at the end of 2018 following the sale of the purification business.

SAES Group – Additional periodic financial information as at September 30, 2020


Thousands of euro	9M 2020	9M 2019
Operating income (loss)	14,015	22,890
Depreciation & amortization	7,972	7,013
Write-down of assets	171	1
Bad debt provision accrual (release) EBITDA	60 22,218	(24) 29,880

The net balance of the other income (expenses) was negative and equal to -€0.8 million, compared to a positive balance equal to +€2.3 million in the first nine months of 2019. The negative change (-€3.1 million) was due to the expenses, equal to approximately -€0.7 million, for the Covid-19 donations, as well as to the extraordinary income recognized in 2019 (income from a related party, equal to +€2.3 million, for the sale of the OLET patents owned by E.T.C. S.r.l. in liquidation to Flexterra, Inc. and other extraordinary revenues, equal to approximately +€0.2 million, for insurance reimbursements and for the favorable closing of some legal disputes).

The net balance of financial income and expenses was negative and equal to -€4.9 million, compared to a positive balance of +€5.3 million in the corresponding period of 2019. The negative change (-€10.2 million) was mainly due to the reduction of the fair value of the securities portfolio due to the Covid-19 financial crisis (in the first nine months of 2019 the value of the securities had increased by +€4.7 million, while in the current period the fair value decreased by -€4.9 million).

In addition, please note the higher interest rates on short and long-term¹² loans and higher bank commissions (in total -€0.8 million), only partially offset by higher coupon income (+€0.3 million).

The loss deriving from the evaluation with the equity method of the joint ventures was overall equal to -€1.5 million (attributable to both the joint venture Flexterra for -€1.3 million and to the joint venture SAES RIAL Vacuum S.r.l. for +€0.1 million, as well as including the release into the income statement, equal to -€0.3 million, of the conversion reserve following the liquidation of the Asian subsidiaries of Actuator Solutions GmbH). This amount compares with a cost equal to -€1.4 million in the corresponding period of the previous year (attributable both to the joint venture Flexterra for -€1.6 million and to the joint venture SAES RIAL Vacuum S.r.l. for +€0, 2 million).

The sum of the exchange rate differences recorded a negative balance of -€0.2 million in the first nine months of 2020, compared to a substantially nil balance in the corresponding period of 2019 (+€56 thousand). Both balances, of an immaterial amount, were mainly attributable to the effect of the fluctuations of the dollar against the euro on commercial transactions, including intra-group ones.

Consolidated income before taxes amounted to €7.4 million in the first nine months of 2020, compared to €26.9 million in the corresponding period of 2019: the decrease was attributable both to the reduction in revenues and margins and to the aforementioned non-recurring items, that caused the decrease in the operating income, as well as the aforementioned reduction in the value of the securities portfolio.

Income taxes amounted to €4.3 million, compared with €9.1 million in the previous period, and mainly consisted of taxes of the US companies. The decrease compared to the previous year was mainly attributable to the reduction in US taxes due to lower taxable income and to the lower taxes of the subsidiary SAES Investments S.A., which ended the period with a tax loss due to the losses on securities caused by the Covid-19 crisis.

The Group's tax rate was equal to 57.8% (compared to 34% in the corresponding period of the previous year), still significant, since both the Parent Company and SAES Coated Films S.p.A., similarly to the previous year, ended the current period with a negative taxable income, not valued as deferred tax assets.

¹² Higher interest expenses related to the loan signed in April 2019 to cover the disbursement for the purchase of treasury shares.

SAES Group – Additional periodic financial information as at September 30, 2020
Net income from operating activities was equal to €3.1 million (2.4% of consolidated revenues) in the first nine months of 2020, compared to €17.7 million (12.9% of consolidated revenues) in the corresponding period of 2019.
The result from discontinued operations was equal to zero in the first nine months of 2020. In the corresponding period of 2019, the income from discontinued operations was equal to €0.1 million, mainly consisting of the positive adjustment on the sale price of the gas purification business, following the definition of the effective value of the tax credit of the sold companies SAES Getters USA, Inc. and SAES Pure Gas, Inc. resulting from the tax return for the period January 1 - June 24, 2018, presented in April 2019.
Consolidated net income amounted to €3.1 million in the first nine months of 2020, compared to €17.9 million in the corresponding period of 2019.
Consolidated statement of profit or loss Thousands of euro
	9M 2020	9M 2019
Total net sales	128,096	137,451
Cost of sales	(73,879)	(76,908)
Gross profit	54,217	60,543
R&D expenses Selling expenses	(7,789) (8,181)	(8,257) (9,432)
G&A expenses	(23,344)	(22,286)
Write-down of trade receivables	(60)	24
Total operating expenses	(39,374)	(39,951)
Other income (expenses), net Operating income (loss)	(828) 14,015	2,298 22,890
Interest and other financial income, net	(4,586)	5,586
Write-down of financial receivables and other financial assets	(308)	(279)
Income (loss) from equity method evalueted companies	(1,460)	(1,386)
Foreign exchange gains (losses), net	(232)	56
Income (loss) before taxes Income taxes	7,429 (4,296)	26,867 (9,146)
Net income (loss) from continued operations	3,133	17,721
Income (loss) from discontinued operations	0	142
Net income (loss) before minority interest	3,133	17,863
Net income (loss) pertaining to minority interest	0	0
Net income (loss) pertaining to the Group	3,133	17,863
Consolidated statement of other comprehensive income
Thousands of euro
Net income (loss) for the period from continued operations	9M 2020 3,133	9M 2019 17,721

Exchange differences on translation of foreign operations	(4,687)	5,065
Exchange differences on equity method evaluated companies	(311)	459
Total exchange differences	(4,998)	5,524
Total components that will be reclassified to the profit (loss) in the future	(4,998)	5,524
Reversal of currency conversion reserve after the liquidation of equity method evaluated companies	278	0
Total components that have been reclassified to the profit (loss)	278	0
Other comprehensive income (loss), net of taxes - continued operations	(4,720)	5,524
Total comprehensive income (loss), net of taxes - continued operations	(1,587)	23,245

Net income (loss) for the period from discontinued operations	0	142
Total comprehensive income (loss), net of taxes -discontinued operations	0	142
	(1,587)	23,387
Total comprehensive income (loss), net of taxes attributable to:

Consolidated statement of profit or loss

Consolidated Cash Flows Statement

	SAES Group – Additional periodic financial information as at September 30, 2020







Consolidated Cash Flows Statement
Thousands of euro
			9M 2020	9M 2019
Net income (loss) from continued operations			3,133	17,721
Net income (loss) from discontinued operations			0	142
Current income taxes			4,247	6,207
Change in deferred income taxes			50 8,143	2,872 7,014
Depreciation, amortization and write down of non current assets Net loss (gain) on disposal of fixed assets			(12)	(2,272)
Net gain on purification business disposal			0	(142)
Interest and other financial (income) expenses, net			6,355	(3,921)
Other non-monetary costs (revenues)			927	1,548
			22,843	29,169
Change in operating assets and liabilities			(11,939)	(6,772)
Payments of termination indemnities and similar obligations	(378)	(393)
Financial income received, net of payment of interests Taxes paid	(463) (4,717)	(123) (7,584)
			5,346	14,297
Net cash provided by (used by) operating activities Purchase of tangible and intangible assets, net of proceeds from sales			(9,158)	(17,785)
Sale of intellectual property to related parties			0	2,291
Adjustment on consideration for the purification business disposal			0	(387)
Purchase of securities, net of disinvestments			(768)	(100,415)
Income from securities, net of management fees			1,703	1,365
Advances paid for the purchase of investments			0	(1,100)
Purchase of other investments			(282)	0
Cash flows provided by (used by) investing activities			(8,505)	(116,031)
Proceeds from financial liabilities, net of repayments			2,883	88,801
Financial receivables repaid (granted) from related parties			(2,562)	0
Interests receipts on financial receivables from related parties Dividends payment			1 (9,198)	1 (16,580)
Interests and other expenses paid on loans			(1,042)	(523)
Repayment of financial liabilities for leased assets (interests included)			(1,666)	(1,150)
Purchase of treasury shares and related accessory costs			0	(93,382)
Other financial liabilities/assets			1	11
Cash flows provided by (used by) financing activities			(11,583)	(22,822)
Effect of exchange rate differences			(1,010)	1,259
Increase (decrease) in cash and cash equivalents			(15,752)	(123,297)
Cash and cash equivalents at the beginning of the period			48,521	170,395
Cash and cash equivalents at the end of the period			32,769	47,098
Consolidated net result per share

In the first nine months of 2020 the net income per ordinary share was equal to €0.16586 while that per savings
share was equal to €0.18249; in the first nine months of the previous year, net income amounted to €0.87319 per
ordinary share and €0.88982 per savings share.
Consolidated income (loss) per share
Euro

	9M 2020	9M 2019
Net income (loss) per ordinary share	0.16586	0.87319
Net income (loss) per savings share	0.18249	0.88982




		20

Consolidated net result per share

Consolidated income (loss) per share

	9M 2020	9M 2019
Net income (loss) per ordinary share	0.16586	0.87319
Net income (loss) per savings share	0.18249	0.88982

Impact of the Covid-19 epidemic on the results as at September 30, 2020

Covid-19 one-offs

	SAES Group – Additional periodic financial information as at September 30, 2020




Impact of the Covid-19 epidemic on the results as at September 30, 2020

Covid-19 one-offs
Thousands of euro			9M 2020
Covid-19 one-offs	Direct labor	Manufactoring	R&D expenses	Selling	G&A expenses	Total
Personnel cost	(110)	overhead (59)	(47)	expenses (12)	29	(199)
Maintenance and repairs					132	132
Material and office material					119	119
Transport, insurance, freight-direct					4	4
Consultant fees					133	133
Canteen, cleaning, vigilance Training					100 3	100 3
Total cost of sales and extraordinary operating expenses Covid-19	(110)	(59)	(47)	(12)	520	292
(*) The amount is composed by:
- CIGO savings in Lainate plant, for -55 thousands of euro;
- saving for USA governmental misures to support companies and families, for -186 thousands of euro;
- additional personnel costs, for 42 thousands of euro.
Thousands of euro
Covid-19 one-offs	9M 2020
Other income	9
Other expenses	(691)
Total other extraordinary income (expenses)	(682)
Covid-19


Performance of the joint ventures

Other expenses	(691)
Total other extraordinary income (expenses)	(682)
Covid-19

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. completed the liquidation process, which began at the end of fiscal year 2019, during the current quarter.

Actuator Solutions recorded net revenues equal to €10.8 million in the first nine months of 2020, down by 35.4% compared to €16.7 million in the first nine months of 2019: the automotive market, significantly penalized by the Covid-19 crisis in the first two quarters of 2020, showed signs of a slight recovery only in the current quarter. Finally, please note that the Covid-19 crisis also represented an opportunity for Actuator Solutions in the medical sector: thanks to a contract for the development, assembly and sale of devices for Covid-19 rapid diagnostic tests, revenues for a total value of approximately €1.5 million were recorded in the first nine months of 2020.

Net income of the first nine months of 2020 was positive and equal to +€0.4 million, compared to a loss of -€0.9 million in the corresponding period of 2019: despite the decrease in sales, the gross margin significantly improved, thanks both to the proceeds from engineering contracts signed with third parties, characterized by higher margins, and to the good margins of the medical business related to the Covid-19 pandemic; also operating expenses decreased following the closing-down of the business of the two Asian subsidiaries. Finally, please note, under the item "exchange rate differences", a negative amount of €150 thousand deriving from the release into the income statement of the translation reserve generated by the consolidation of the Asian subsidiaries, following their liquidation.

The loss at September 30, 2019 included extraordinary expenses of approximately €0.4 million (item "other income (expenses), net") related to a computer fraud suffered by the German parent company in the first part of the year.

The share of the SAES Group in the result of this joint venture amounted to +€0.2 million in the first nine months of 2020 (-€0.4 million in the first nine months of 2019) but it was not recorded by the Group as the shareholders' equity of Actuator Solutions GmbH is still negative for about €2.7 million¹³, against a stake of SAES in the joint venture already fully reduced to zero.

Please also note that as at December 31, 2019 a provision for risks of €0.6 million had been accrued, equal to the pro-quota financial resources necessary to Actuator Solutions in the following twenty-four months to continue its operating activities. At September 30, 2020, the provision had been used for about half of that amount.

During the first nine months of 2020, the financial receivable related to the interest accrued in the period on interest-bearing loans granted to the joint venture by SAES Nitinol S.r.l. in previous years, equal to €0.4 million, was written down because it was deemed difficult to recover.

¹³ Pro-quota amount at 50%.

Actuator Solutions - SAES Group interest (50%)

Thousands of euro

Actuator Solutions	September 30, 2020	December 31, 2019
Statement of financial position	50%	50%
Non current assets	3,119	3,488
Current assets	1,636	1,343
Total Assets	4,755	4,831
Non current liabilities	4,375	4,625
Current liabilities	3,073	3,176
Total Liabilities	7,448	7,801
Capital Stock, Reserves and Retained Earnings	(2,970)	(1,553)
Net income (loss) for the period	207	(1,408)
Other comprehensive income (loss) for the period (*)	70	(9)
Total Equity	(2,693)	(2,970)

Total Liabilities	7,448	7,801
Capital Stock, Reserves and Retained Earnings	(2,970)	(1,553)
Net income (loss) for the period	207	(1,408)
Other comprehensive income (loss) for the period (*)	70	(9)
Total Equity	(2,693)	(2,970)
(*) 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, as well as upon the conversion reserve release to P&L after the liquidation of the two asian companies.
Actuator Solutions	9M 2020	9M 2019
Statement of profit or loss	50%	50%
Total net sales	5,400	8,364
Cost of sales	(3,991)	(6,845)
Gross profit	1,409	1,520
Total operating expenses	(984)	(1,577)
Other income (expenses), net	87	(159)
Operating income (loss)	512	(216)
Interests and other financial income, net	(227)	(221)
Foreign exchange gains (losses), net	(82)	(12)
Income taxes	4	11
Net income (loss)	207	(437)
Exchange differences	(5)	2
Release of conversion reserve for liquidation of
subsidiaries	75	0
Total comprehensive income (loss) for the period	277	(435)

Prospetto dell'utile (perdita)	3Q 2020	3Q 2019
	50%	50%
Total net sales	1,460	2,876
Cost of sales	(1,128)	(2,373)
Gross profit	332	504
Total operating expenses	(339)	(530)
Other income (expenses), net	5	12
Operating income (loss)	(2)	(14)
Interests and other financial income, net	(75)	(74)
Foreign exchange gains (losses), net	(70)	14
Income taxes	(4)	12
Net income (loss)	(151)	(62)
Exchange differences	(7)	(8)
Release of conversion reserve for liquidation of

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 is specialized in the design and manufacturing of vacuum chambers for accelerators, synchrotrons and colliders and combines at the highest level the competences of SAES in the field of materials, vacuum applications and innovation, with the experience of Rodofil in the design, assembling and fine mechanical productions, with the aim of offering absolutely excellent quality products and of successfully competing in the international markets.

SAES RIAL Vacuum S.r.l. ended the first nine months of 2020 with sales equal to €3.4 million, up by 48.1% compared to €2.3 million in the corresponding period of 2019: after a first quarter of 2020 heavily penalized by the delay of some large research projects, also due to the Covid-19 pandemic, in the following quarters the

	SAES Group – Additional periodic financial information as at September 30, 2020
	turnover increased, returning to the initially expected progressive levels. Despite the increase in revenues, the decline in gross margin due to a different product mix caused a reduction in the net income, equal to €0.3 million in the first nine months of 2020, compared to €0.4 million as at September 30, 2019. Thousands of euro
	SAES RIAL Vacuum S.r.l.			9M 2020	9M 2019
				100%	100%
	Total net sales			3,398	2,295
	Cost of sales			(2,623)	(1,453)
	Gross profit			775	842
			% on sales	22.8%	36.7%
	Total operating expenses			(391)	(325)
	Other income (expenses), net			28	50
	Operating income (loss) % on sales			412	567
				12.1%	24.7%

	Interests and other financial income, net			(31)	(22)
	Foreign exchange gains (losses), net			0	0
	Income taxes			(91)	(152)
	Net income (loss)			290	393
	The share of the SAES Group in the result of this joint venture was equal to +€0.1 million in the first nine months of 2020 (+€0.2 million in the first nine months of 2019). SAES RIAL Vacuum S.r.l. - SAES Group interest (49%)
Thousands of euro	SAES RIAL Vacuum S.r.l.	September 30, 2020	December 31, 2019
Statement of financial position		49%	49%
Non current assets		309		325
Current assets		1,512		983
Total Assets		1,821		1,308
Non current liabilities		191		192
Current liabilities		1,037		665
Total Liabilities		1,228		857
Net income (loss) for the period	Capital Stock, Reserves and Retained Earnings	451	142	249 198

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

Total operating expenses			(391)	(325)
Other income (expenses), net			28	50


Interests and other financial income, net			(31)	(22)
Foreign exchange gains (losses), net			0	0
Income taxes			(91)	(152)


The share of the SAES Group in the result of this joint venture was equal to +€0.1 million in the first nine

months of 2020 (+€0.2 million in the first nine months of 2019).

SAES RIAL Vacuum S.r.l. - SAES Group interest (49%)
Thousands of euro
SAES RIAL Vacuum S.r.l.	September 30, 2020	December 31, 2019
Statement of financial position	49%	49%
Non current assets	309	325
Current assets	1,512	983
Total Assets	1,821	1,308
Non current liabilities	191	192
Current liabilities	1,037	665
Total Liabilities	1,228	857
Capital Stock, Reserves and Retained Earnings	451	249
Net income (loss) for the period		142 198
Other comprehensive income (loss) for the period (*)		0	4
Total Equity	593	451
(*) Actuarial differences on the employee severance indemnities (TFR), according to the IAS 19.
SAES RIAL Vacuum S.r.l.	9M 2020	9M 2019
Statement of profit or loss	49%	49%
Total net sales	1,665	1,125
Cost of sales	(1,285)	(712)
Gross profit	380	413
Total operating expenses	(192)	(159)
Other income (expenses), net	14	25
Operating income (loss)	202	279
Interests and other financial income, net	(15)	(11)
Foreign exchange gains (losses), net	0		0
Income taxes	(45)	(74)
Net income (loss)	142	193
Actuarial gain (loss) on defined benefit plans, net of taxes	0		0
Totale comprehensive income (loss) for the period	142	193

SAES Group – Additional periodic financial information as at September 30, 2020


SAES RIAL Vacuum S.r.l.	3Q 2020	3Q 2019
Statement of profit or loss	49%	49%
Total net sales	797	547

Cost of sales	(570)	(236)
Gross profit	227	311
Total operating expenses	(65)	(64)
Other income (expenses), net Operating income (loss)	3 165	6 253
Interests and other financial income, net	(8)	(4)
Foreign exchange gains (losses), net	0	0
Income taxes	(38)	(70)
Net income (loss)	119	178
Actuarial gain (loss) on defined benefit plans, net of taxes	0	0
Totale comprehensive income (loss) for the period	119	178

Flexterra
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 truly 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.

Already during 2019, the Flexterra project had made further progress, albeit with some delay compared to the original forecasts. In particular, the joint venture continued the development activities on its organic materials and received the qualification of its formulations by an important Taiwanese manufacturer of OTFTs (Organic Thin Film Transistors). The industrialization of the OTFTs, that required a longer time than that initially estimated, also due to the Covid-19 crisis, is at an advanced stage and the start of the production and sales activities is expected to begin at the end of the current year. Flexterra 9M 2020 9M 2019 100% 100%

Flexterra, qualified as a joint venture, ended the first nine months of 2020 with a net loss equal to -€3 million, compared to -€3.4 million in the corresponding period of 2019 (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).

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 truly flexible displays. Flexterra, Inc. fully controls Flexterra Taiwan Co., Ltd.

Already during 2019, the Flexterra project had made further progress, albeit with some delay compared to the original forecasts. In particular, the joint venture continued the development activities on its organic materials and received the qualification of its formulations by an important Taiwanese manufacturer of OTFTs (Organic Thin Film Transistors). The industrialization of the OTFTs, that required a longer time than that initially estimated, also due to the Covid-19 crisis, is at an advanced stage and the start of the production and sales Flexterra, qualified as a joint venture, ended the first nine months of 2020 with a net loss equal to -€3 million, compared to -€3.4 million in the corresponding period of 2019 (mainly costs for personnel employed in research activities and in general and administrative activities, consultancy fees, costs related to the management of
Thousands of euro
Flexterra	9M 2020 100%	9M 2019 100%
Total net sales	51	15
Cost of sales	(27)	(3)
Gross profit	24	12
% on sales	47.1%	80.0%

Total operating expenses	(3,090)	(3,384)
Other income (expenses), net	2	0
Operating income (loss)	(3,064)	(3,372)
% on sales	n.a.	n.a.
Interests and other financial income, net	(58)	2
Foreign exchange gains (losses), net	137	(41)
Income taxes	30	32

The share of the SAES Group in the result of this joint venture amounted to -€1.4 million in the first nine months of 2020 (-€1.6 million as at September 30, 2019).

Flexterra - SAES Group interest (46.73%)

Thousands of euro

Flexterra	September 30, 2020	December 31, 2019
Statement of financial position	46.73%	46.73%
Non current assets	6,066	6,837
Current assets	1,443	1,261
Total Assets	7,509	8,098
Non current liabilities	53	92
Current liabilities	1,393	255
Total Liabilities	1,446	347
Capital Stock, Reserves and Retained Earnings	7,595	9,465
Reserve for stock options plan	160	156
Net income (loss) for the period	(1,381)	(2,031)
Other comprehensive income (loss) for the period (*)	(311)	161
Total Equity	6,063	7,751

Current liabilities	1,393	255
Total Liabilities	1,446	347
Capital Stock, Reserves and Retained Earnings	7,595	9,465
Reserve for stock options plan	160	156
Net income (loss) for the period	(1,381)	(2,031)
Other comprehensive income (loss) for the period (*)	(311)	161
Total Equity	6,063	7,751
(*) Currency translation differences arising from the conversion in euro of the financial statements of Flexterra, Inc. and of Flexterra Taiwan Co., Ltd.
Flexterra	9M 2020	9M 2019
Statement of profit or loss	46.73%	46.73%
Total net sales	24	7
Cost of sales	(13)	(1)
Gross profit	11	6
Total operating expenses	(1,444)	(1,581)
Other income (expenses), net	1	0
Operating income (loss)	(1,432)	(1,575)
Interests and other financial income, net	(27)	1
Foreign exchange gains (losses), net	64	(20)
Income taxes	14	15
Net income (loss)	(1,381)	(1,579)
Exchange differences	(311)	459
Total comprehensive income (loss) for the period	(1,692)	(1,120)

Flexterra	3Q 2020	3Q 2019
Statement of profit or loss	46.73%	46.73%
Total net sales	1	1
Cost of sales	0	0
Gross profit	1	1
Total operating expenses	(448)	(526)
Other income (expenses), net	1	0
Operating income (loss)	(446)	(525)
Interests and other financial income, net	(23)	0
Foreign exchange gains (losses), net	29	0
Income taxes	4	4
	(436)	(521)
Net income (loss)
Exchange differences	(324)	380

46.73%	46.73%
	7
	(1)
	6
	(1,581)
	0
(1,432)	(1,575)
	1
	(20)
	15
(1,381)	(1,579)
	459
	(1,120)



	1
	0

	(526)
	0
	(525)
	0
29	0
4	4


(436) (324)	(521) 380
	24 (13) 11 (1,444) 1 (27) 64 14 (311) (1,692) 1 0 (448) 1 (446) (23)

	SAES Group – Additional periodic financial information as at September 30, 2020




Total statement of profit or loss of the Group Thousands of euro					9M 2020
	Consolidated profit or loss	50% Actuator Solutions	Intercoy eliminations & other adjustments	49% SAES RIAL Vacuum S.r.l.	Intercoy eliminations & other adjustments	46.73% Flexterra	Intercoy eliminations & other adjustments	Total profit or loss of the Group
Total net sales	128,096	5,400	(225)	1,665	(388)	24		134,572
Cost of sales Gross profit	(73,879) 54,217	(3,991) 1,409	225 0	(1,285) 380	388 0	(13) 11	0	(78,555) 56,017
% on sales	42.3%							41.6%
Total operating expenses Other income (expenses), net	(39,374) (828)	(984) 87		(192) 14		(1,444) 1	57	(41,937) (726)
Operating income (loss) % on sales	14,015 10.9%	512	0	202	0	(1,432)	57	13,354 9.9%
Interest and other financial income, net	(4,894)	(227)	180	(15)			(27)	(4,983)
Income (loss) from equity method evaluated companies Foreign exchange gains (losses), net	(1,460) (232)	(82)	278 (75)	0	(142)	64	1,324	0 (325)
Income (loss) before taxes	7,429	203	383	187	(142)	(1,395)	1,381	8,046
Income taxes Net income (loss) from continued operations	(4,296) 3,133	4 207	383	(45) 142	(142)	14 (1,381)	1,381	(4,323) 3,723
Income (loss) from assets held for sale and discontinued	0							0
operations Net income (loss) before minority interest	3,133	207	383	142	(142)	(1,381)	1,381	3,723
Net income (loss) pertaining to minority interest		0						0
Net income (loss) pertaining to the Group	3,133	207	383	142	(142)	(1,381)	1,381	3,723
Total statement of profit or loss of the Group
Thousands of euro					3Q 2020
	Consolidated profit or loss	50% Actuator Solutions	Intercoy eliminations & other adjustments	49% SAES RIAL Vacuum S.r.l.	Intercoy eliminations & other adjustments	46.73% Flexterra	Intercoy eliminations & other adjustments	Total profit or loss of the Group
Total net sales Cost of sales	38,997 (23,003)	1,460 (1,128)	(81) 81	797 (570)	(124) 124	1 0		41,050 (24,496)
Gross profit	15,994	332	0	227	0	1	0	16,554
% on sales Total operating expenses	41.0% (13,048)	(339)	0	(65)		(448)	19	40.3% (13,881)
Other income (expenses), net	(74)	5		3		1		(65)
Operating income (loss) % on sales	2,872 7.4%	(2)	0	165	0	(446)	19	2,608 6.4%
Interest and other financial income, net Income (loss) from equity method evaluated companies	1,566 (576)	(75)	61	(8) 278	(119)		(23)	1,521 417 0
Foreign exchange gains (losses), net	(203)	(70)	(75)			29		(319)
	3,659	(147)	264	157	(119)	(440)	436	3,810
Income (loss) before taxes
Income taxes Net income (loss) from continued operations	(964) 2,695	(4) (151)	264	(38) 119	(119)	4 (436)	436	(1,002) 2,808
Income (loss) from assets held for sale and discontinued operations	0							0

Total statement of profit or loss of the Group

Interest and other financial income, net	(4,894)	(227)	180	(15)			(27)	(4,983)





Income (loss) from assets held for sale and discontinued




Total statement of profit or loss of the Group Thousands of euro			Intercoy eliminations &	3Q 2020	Intercoy eliminations &		Intercoy eliminations &
								Total profit or loss
	Consolidated profit or loss	50% Actuator Solutions	other adjustments	49% SAES RIAL Vacuum S.r.l.	other adjustments	46.73% Flexterra	other adjustments


Gross profit	15,994	332	0	227	0	1	0	16,554
% on sales	41.0%							40.3%
Total operating expenses	(13,048)	(339)	0	(65)		(448)	19	(13,881)
Other income (expenses), net	(74)	5		3		1		(65)
Operating income (loss)	2,872	(2)	0	165	0	(446)	19	2,608
% on sales	7.4%							6.4%
Interest and other financial income, net	1,566	(75)	61	(8)			(23)	1,521
Income (loss) from equity method evaluated companies	(576)			278	(119)			417 0
Foreign exchange gains (losses), net	(203)	(70)	(75)			29		(319)
Income (loss) before taxes	3,659	(147)	264	157	(119)	(440)	436	3,810
Income taxes	(964)	(4)		(38)		4		(1,002)
Net income (loss) from continued operations Income (loss) from assets held for sale and discontinued	2,695 0	(151)	264	119	(119)	(436)	436	2,808 0
operations
Net income (loss) before minority interest	2,695	(151)	264	119	(119)	(436)	436	2,808
Net income (loss) pertaining to minority interest Net income (loss) pertaining to the Group	2,695	0 (151)	264	119	(119)	(436)	436	0 2,808

Significant events occurred after the end of the quarter

With reference to the investment completed in the EUREKA! venture capital Fund, on October 16, 2020, a further amount equal to €30 thousand was paid, including both the portion of commissions and management fees, and the share of an investment made by the fund in the printed electronics business.

On October 21, 2020, it was approved the transfer of 10% of the share capital of SAES Getters International Luxembourg S.A. from SAES Getters (Nanjing) Co., Ltd. to SAES Getters S.p.A. (already owner of 90% of the shares). The consideration related to the portion of the shares to be transferred was set at €4 million. The closing of the transaction, subject to the approval of the authorities of the People's Republic of China, is expected by December 31, 2020 and will not affect the Group's consolidated financial statements.

On October 27, 2020 SAES Getters S.p.A. signed a new agreement with the trade union representatives to define additional security measures in conjunction with the worsening of the Covid-19 pandemic. In particular, the agreement provides for the continuation of the smart working experimentation project started at the beginning of August and the extension of remote working to 35 employees for a total of 2/3 days a week. The aforementioned number of 35 employees is indicative and may be increased based on the evolution of the epidemiological situation. This agreement is valid until December 31, 2020, compatibly with the evolution of the pandemic.

On November 11, 2020 the Board of Directors of SAES Getters S.p.A. approved the amendments to the articles 14 and 22 of the Company's By-Laws to integrate the changes introduced by articles 147-ter, comma 1-ter and 148, comma 1-bis of the Legislative Decree no. 58/1998, referring to the gender quotas.

Please note that the fair value of the securities portfolio the Group, consisting mainly of buy&hold assets, increased by approximately 0.2% to date compared to the value at September 30, 2020.

Business outlook

In the fourth quarter there was an initial recovery in the medical market.

***

It should be noted that the additional periodic financial information as at September 30, 2020 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

Lainate, Milan - Italy, November 11, 2020

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

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Saes Getters

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SAES GETTERS S.p.A.

Additional periodic financial information as at September 30, 2020

HIGHLIGHTS OF THE THIRD QUARTER OF 2020

Thousands of euro

Thousands of euro

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of profit or loss

Consolidated statement of other comprehensive income

Consolidated Statement of Financial Position

Consolidated Cash Flows Statement

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting Principles, Methods and Structure of the Group

Relevant events occurred in the third quarter of 2020

Reclassifications of the economic figures of 2019

Net Sales by Business and by Geographic Location of Customers

Thousands of euro (except %)

Thousands of euro Consolidated Net Sales by Geographic Location of Customer

Information by operating segment

Metallurgy Division

Vacuum Technology Division

Medical Division

Specialty Chemicals Division

Advanced Packaging Division

Not Allocated Costs

Economic results of the third quarter of 2020

Net financial position

Consolidated Net Financial Position

JANUARY – SEPTEMBER 2020

Net Sales by Business and by Geographic Location of Customers

Thousands of euro (except %)

Consolidated Net Sales by Geographic Location of Customer

Thousands of euro

Information by operating segment

Economic results of the first nine months of 2020

Consolidated statement of profit or loss

Consolidated Cash Flows Statement

Consolidated net result per share

Consolidated income (loss) per share

Impact of the Covid-19 epidemic on the results as at September 30, 2020

Covid-19 one-offs

Performance of the joint ventures

Actuator Solutions

Actuator Solutions - SAES Group interest (50%)

SAES RIAL Vacuum S.r.l.

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

Flexterra

Flexterra - SAES Group interest (46.73%)

Significant events occurred after the end of the quarter

Business outlook

Consob regulatory simplification process

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