Biesse

Earnings Release • May 12, 2021

Consolidated Quarterly Report as at 31 March 2021 approved

amounts in millions of euros	IQ '21	IQ '20	delta %	IQ '19
Net Sales - Turnover	161.4	147.7	+9.3%	169.0
Gross Operating Profit (EBITDA)	20.5	12.4	+65.9%	18.9
Operating Profit (EBIT)	11.3	5.4	+110.9%	10.7
Net Result	6.8	2.1		5.6
Net Financial Position (without IFRS16 effects)	82.1 cash positive	0.0		9.9 cash positive

Pesaro, 12 May 2021 – The Board of Directors of Biesse S.p.A., a company listed on Borsa Italiana's "STAR" segment, today approved its Consolidated Report for the first quarter of 2021.

In the period 1/1/21 – 31/3/21, the Biesse Group recorded:

• consolidated net revenues of 161.4 million euros (+9.3% less than in the same period in 2020)

• added value of 76.4 million euros (+21.7% less than in the same period in 2020), 47.3% of revenues

• EBITDA of 20.5 million euros (+65.9% compared to the same period in 2020), 12.7% of revenues

• EBIT of 11.3 million euros (+110.9% compared to the same period in 2020), 7.0% of revenues

• profit before taxes of 9.4 million euros, 5.8% of revenues (2.5% in the same period in 2020)

• net profit of 6.8 million euros, 4.2% of revenues (1.4% in the same period in 2020) with a tax rate of 27.6% (43.3% in March 2020).

The Group's Net Financial Position at 31 March 2021 -even though taking into account the estimated effects of IFRS 16- was positive at 60.1 million euros. This means that gross of these effects, the Group's Net Financial

Position would have been positive at 82.1 million euros which is the positive difference compared to the Net Financial Position for the same period of the previous year, using the same calculation principle. From the beginning of 2021, net cash generation is 10.4 million euros, while compared to March 2019, the NFP (always pro-forma of the IFRS16 effects) is an improvement of 72.2 million euros.

Operating net working capital amounted to 29.0 million euros (27.7 million at the end of December 2020). Net invested capital was 163.5 million euros. Shareholders' equity was 223.7 million euros.

Orders

At the end of the first quarter 2021, significant increase of +57.2% in the Group's order intake (machines) compared to the previous year. Positive sign of +19.2% also compared to the first quarter 2019. The order backlog (253 million euros - machines) has increased 18.6% since the end of 2020. It also improves compared to March 2020 (+34%) and March 2019 (+13.4%).

Revenue breakdown (by business segment – geographical area)

The wood division (69.5%) remained larger than glass and stone (18.3%) and mechatronics (14.6%).

The percentages by geographical macro-area at the end of March 2021 are as follows: the Italian market accounted for 16.1% of turnover (13.8% in March 2020)

• Western Europe 50.1% (45.4% in the first quarter of 2020)
• Eastern Europe 16.6% (19.7% in the first quarter of 2020)
• North America 17.3% (19.9% in the first quarter of 2020)
• Asia Pacific 13.5% (12.4% in the first quarter of 2020)
• Rest of World 2.5% (2.6% in the first quarter of 2020)

Related Parties Procedure – Incentive Plan LTI

The Board of Directors also approved the New Procedure regulating transactions with Related Parties as well as the New Long-Term Incentive Plan (LTI) for the period 2021-2023.

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On the sidelines of today's meeting the Group C.E.O. Roberto Selci commented:

The results approved today, within a framework of persistent instability and uncertainty due to the continuation of the negative effects of the pandemic, are undoubtedly promising for the rest of the year and testify to the soundness of the choices made. We are pleased to note the increase in volumes, the improvement in margins in both absolute as well as percentage of revenues terms - and, above all, the cash generation. Net profit has actually more than tripled with respect to 12 months ago.

The virtuous evolution of the order intake and backlog is an important confirmation of the positive momentum the Biesse Group is experiencing. We even expressly evaluated the current first quarter against the comparable 2019 period, precisely to eliminate the impacts of what has occurred during the past 12 months and compare ourselves with a pre-pandemic period.

We recently communicated the strengthening of our international structure, which demonstrates that our development plans have not been slowed down in any way. Our innate propensity for export leads us to follow all the international dynamics and every growth opportunity worldwide very carefully, which we will not fail to seize if there are the conditions and premises consistent with our development plan."

"The Financial Reporting Officer (Group CFO Pierre La Tour) declares that, pursuant to paragraph 2, article 154 bis of the Consolidated Law on Finance, the accounting information in this press release corresponds to the results in the accounting documents, books and other records."

The Consolidated Quarterly Report will be duly filed at the registered office (available on our corporate website www.biessegroup.com Investor Relations area) and on the authorised storage website as provided for by current legislation.

Biesse Group is multinational leader in technology for processing wood, glass, stone and advanced materials. It designs, manufactures and distributes machines, integrated systems and software for manufacturers of furniture, door/window frames and components for the constructions, ship-building and aerospace industries. The Group invests around 4% of its annual revenue in research and development and has registered over 200 patents. It operates through 12 industrial sites, 39 branches, 300 agents and selected dealers, exporting around 85% of its production. Its customers include some of the most prestigious names in Italian and international design. Founded in Pesaro in 1969 by Giancarlo Selci, Biesse has been listed in the STAR segment of the Italian Stock Exchange since June 2001. It actually has more than 4,160. employees distributed in the main sites based in Pesaro, Gradara, Padova, Villafranca (VR), Thiene (VI), Alzate Brianza (CO) and the foreign subsidiaries and representative offices in Europe, North America, Latin America, Middle and Far East, Asia and Oceania.

ACCOUNTING STATEMENTS

Profit & Loss- Income statement 31 March 2021

	31 March	% on sales	31 March	% on sales	CHANGE %
	2021		2020
Euro 000's
Revenue from sales and services	161,391	100.0%	147,661	100.0%	9.3%
Change in inventories, wip, semi-finished products and finished products	14,886	9.2%	(761)	(0.5)%	-
Other Revenues	1,113	0.7%	1,599	1.1%	(30.4)%
Revenue	177,390	109.9%	148,498	100.6%	19.5%
Raw materials, consumables, supplies and goods	(75,796)	(47.0)%	(58,690)	(39.7)%	29.1%
Other operating costs	(25,195)	(15.6)%	(27,056)	(18.3)%	(6.9)%
Added value	76,399	47.3%	62,752	42.5%	21.7%
Personnel expense	(55,860)	(34.6)%	(50,374)	(34.1)%	10.9%
Gross operating profit	20,539	12.7%	12,377	8.4%	65.9%
Depreciation and amortisation	(7,434)	(4.6)%	(8,378)	(5.7)%	(11.3)%
Provisions	(1,794)	(1.1)%	1,364	0.9%	-
Operating profit before non recurring items	11,310	7.0%	5,364	3.6%	110.9%
Impairment losses and non recurring-items			(42)	(0.0)%	(100.0)%
Operating profit	11,310	7.0%	5,322	3.6%	112.5%
Financial income	105	0.1%	254	0.2%	(58.8)%
Financial expense	(701)	(0.4)%	(739)	(0.5)%	(5.3)%
Net exchange rate losses	(1,300)	(0.8)%	(1,102)	(0.7)%	17.9%
Pre-tax profit	9,415	5.8%	3,734	2.5%	-
Income taxes	(2,599)	(1.6)%	(1,616)	(1.1)%	60.8%
Profit for the year	6,816	4.2%	2,117	1.4%	-

Balance Sheet 31 Marzo 2021

	31 March	31 December
	2021	2020
Euro 000's
Intangible assets	72,960	73,354
Property, plant and equipment	124,091	125,130
Financial assets	3,347	3,277
Non-current assets	200,398	201,761
Inventories	151,484	129,848
Trade receivables and contract assets	103,204	102,875
Trade payables	(145,566)	(132,790)
Contract liabilities	(80,170)	(72,189)
Net operating working capital	28,952	27,744
Post-employment benefits	(12,730)	(12,775)
Provision for risk and charges	(21,706)	(19,988)
Other net payables	(46,679)	(45,979)
Net deferred tax assets	15,292	14,508
Other net liabilities	(65,823)	(64,235)
Net invested capital	163,528	165,270
Share capital	27,393	27,393
Profit for the previous year and other reserves	188,672	184,099
Profit for the year	6,818	2,531
Non-controlling interests	783	790
Equity	223,667	214,812
Bank loans and borrowings and loans and borrowings from other financial backers	111,807	141,989
Other financial assets	(27,589)	(28,107)
Cash and cash equivalents	(144,357)	(163,425)
Net financial position (1)	(60,139)	(49,543)
Total sources of funding	163,528	165,270

Net Financial Position 31 Marzo 2021

Euro 000's	31st March	31st December	30th September	30th June	31st March
	2021	2020	2020	2020	2020
Financial assets:	(171,946)	(191,532)	(159,097)	(141,295)	(79,313)
Current financial assets	(27,589)	(28,107)	(24,111)	(22,618)	(3,652)
Cash and cash equivalents	(144,357)	(163,425)	(134,986)	(118,677)	(75,661)
Short-term financial lease payables	6,929	6,746	6,699	6,599	6,344
Short-term bank loans and borrowings and loans from other financial backers	41,101	68,763	37,077	55,804	16,211
Short-term net financial position	(123,917)	(116,023)	(115,320)	(78,890)	(56,756)
Medium/Long-term financial lease payables	22,939	23,526	23,914	25,188	26,858
Medium/Long-term bank loans and borrowings	40,838	42,954	94,560	76,292	54,564
Medium/Long-term net financial position	63,777	66,480	118,473	101,479	81,422
Total net financial position	(60,139)	(49,543)	3,152	22,587	24,663

Alberto Amurri IR & Financial Manager Biesse S.p.A. biessegroup.com sez. Investor Relations T: +39 0721439107, +39 335 1219556

alberto.amurri@biesse.com