Fine Foods & Pharmaceuticals Ntm

Investor Presentation • Oct 21, 2019

Investor Presentation

AIM Conference, London – 21 October 2019

Disclaimer

This document has been prepared by Fine Foods & Pharmaceuticals N.T.M. S.p.A. for the sole purpose described herein. The information herein is provided on a strictly confidential basis. By receiving this document the recipient undertakes with the Company to maintain the contents of the document and the document itself strictly confidential. This document may not be copied, distributed or reproduced in whole or in part, nor passed to any third party without the written consent of the Company.

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The information contained in this document, unless otherwise specified is only current as of the date of this document. Unless otherwise stated in this document, the information contained herein is based on management information and estimates. This presentation includes certain forward looking statements, projections, objectives and estimates reflecting the current views of the management of the Company with respect to future events. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements as a prediction of actual results. All forward-looking statements included herein are based on information available to the Company as of the date hereof. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information contained herein is subject to change without notice and past performance is not indicative of future results. The Company may alter, modify or otherwise change in any manner the content of this document, without obligation to notify any person of such revision or changes.

H1 2019 results: very robust sales & profit growth

REVENUES EBITDA* NET INCOME € 83.1 mln (+18%) € 11.2 mln (+19%) € 3.2 mln (+15%)

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Fine Foods & Pharmaceuticals N.T.M. S.p.A. ("Fine Foods") is a CDMO (Contract Development & Manufacturing Organization) of solid oral forms, for the Nutraceutical and Pharmaceutical industries

Fine Foods deliberately holds no proprietary brands, in order to maintain healthy partnerships and an integer image with its clients

Established in 1984 in Brembate (Bergamo), Fine Foods has grown steadily over time becoming a leader in its reference market

A history of continuous growth, innovation and fruitful client relationships: revenues have grown from 50€m in 2009 to 139€m in 2018, reaching a 2018 EBITDA equal to 18.7€m, mostly organically

H1 19 results show strong sales growth (+18%) thanks to both Business Units performances; profitability benefits from turnover increase (EBITDA + 19%)

PHARMACEUTICALS

Examples of Products Manufactured for Reference Clients

Source: Company data

Acquisition and Retention of Key Loyal Customers

RETAINED KEY CLIENTS ACQUIRED BEFORE 2002 AND ADDED SEVERAL NEW ONES AFTERWARDS

Source: Companydata

Fine Foods Key Figures

(1) 52€m revenues invoiced in Italy, of which 33€m delivered abroad | (2) SKUs means "Stock-Keeping Units", namely single product codes

The European Nutraceuticals market has shown high, steady growth, and is expected to accelerate in coming years

EUROPEAN NUTRACEUTICALS MARKET VALUE EUROPEAN VITAMINS & DIETARY SUPPLEMENTS MARKET VALUE

The Vitamins & Dietary Supplements segment has consistently shown strong growth in the last 5 years, expected to continue in coming years. CDMO-driven development and manufacturing, mostly outsourced

Source: Euromonitor

Focus on European Pharmaceuticals Market and CDMO

Source: Euromonitor, Farmindustria, Prometeia | Note: CDMO – Contract Development Manufacturing Organization

Performance Relative to Reference End-Markets

Nutraceuticals and Pharmaceuticals markets show high steady growth and resilience during recessions

Fine Foods has substantially outgrown its reference end-markets in the last decade, with 2018 sales at 2.8 x the 2009level¹

Sources: Euromonitor; Company data

Methodology: the three variables' time series are divided by their respective 2009 value (the basis) and multiplied by a factor of 100; the considered variables are Fine Foods revenues, European Nutraceuticals – Vitamins & Dietary Supplements segment size and European Pharmaceuticals market size

Fine Foods' Special Attention to Human Resources

Source: CompanyData

Fine Foods' Sustainability Framework

Continuously enhanced quality and sustainability management corroborates Fine Foods' reputation with clients In 2018 only, Fine Foods passed successfully 27 audits from customers and authorities

FINE FOODS GUARANTEES THE HIGHTEST QUALITY AND RELIABILITY ALONG ALL THE STEPS OF THE PROCESS

Source: CompanyData

Strong sales growth in H1 2019

13 Source: Company Data

EBITDA increased by 19%

* 1.2 €m adjustment for Business Combination costs

** 1.4 €m adjustment :

• 0.8 €m for plants expansion start-up costs
• 0.6 €m for Nembro plant closing and production transfer costs

Consistent Improvements in Profitability

Healthy Capital Allocation

31.7

NET WORKING CAPITAL CAPEX

Change in inventories is mainly due to significant order backlog: 20 €m turnover achieved in July

Inventory Trade Receivables Trade Payables

Capex support business expansion

Extraordinary Capex Intangibles Ordinary Capex Intangibles

• Extraordinary Capex Tangibles Ordinary Capex Tangibles

Net Financial Position Evolution from end-2018 to H1-2019

Strong PotentialGrowth, Organic and by M&A

• NEW PRODUCTION CAPACITY
• CDMO INDUSTRY TRENDS

CDMOs' clients want few, long-term, reliable relations, with a preference for nimble yet structured players

INORGANIC GROWTH IN ADJACENT MARKETS. MANY POTENTIAL TARGETS IN ITALY AND ABROAD

Along with the ongoing outsourcing trend in the Pharma industry, CDMOs have been acquiring manufacturing assets

ACQUISITION OF NEW TECHNOLOGIES (I.E. SEMI-SOLIDS, LIQUIDS) IN EXISTING END-MARKETS

Source: Management elaboration

Why Fine Foods?

• SOLID TRACK RECORDS
• ATTRACTIVE AND GROWING MARKETS
• LONG LASTING CUSTOMER'S RELATIONS
• IDEAL POSITIONING
• SUSTAINABLE BUSINESS MODEL
• SIGNIFICANT ORGANIC GROWTH
• STRONG FINANCIALS
• POTENTIAL INORGANIC GROWTH DRIVEN BY M&A

Source: Management elaboration

BACK-UP

Manufacturing Plants Geographical Footprint

Customer Concentration

2019 CUSTOMERS IN % OF TOTAL REVENUES

Source: Management elaboration on Companydata

Fine Foods Benchmarking Analysis

Fine Foods is the largest ItalianCDMO

Fine Foods is one of the few players active in both Pharmaceuticals and Nutraceuticals

In general, the largest European CDMOs are focused almost exclusively on Pharmaceuticals

SELECTED FINE FOODS' COMPETITORS AT ITALIAN LEVEL – 2017 REVENUES (€M)

* Listed companies | Note: Nutrilinea, Mipharm and Doppel are respectively controlled by the Private Equity investors White Bridge, Mandarin Capital and Trilantic Europe Source: Management elaboration on publicly retrievable selected information

European CDMO Pharmaceutical Landscape

Fine Foods' goal is to achieve premium European positioning, leveraging (i) its business mix and solid business model, and (ii) a strong financial position enabling inorganic growth

SELECTED FINE FOODS' COMPETITORS AT EUROPEAN LEVEL – 2017 REVENUES (€M)

^*Listed companies Source: Management elaboration on publicly retrievable selected information

Nutraceutical Plant Expansion - ZINGONIA

The operating complex covers a total area of 45,600sqm

• 18.1€m in CAPEX over the 2016-2018 period
• The planned expansion will increase the covered area by ca. 80%
• Completion by 2019

Pre-existing covered area: 15,900 sqm Final covered area: 28,700 sqm

Source: Company Data | Note: all squared-meters data have been approximated to the nearest hundreds

Pharmaceutical Plant Expansion – BREMBATE

The operating complex covers a total area of 20,700sqm

• 14.7€m in CAPEX over the 2016-2018 period
• The planned expansion will increase the covered area by ca. 120%
• Completion by 2019

Pre-existing covered area: 5,700 sqm Final covered area: 12,700 sqm

Source: Company Data | Note: all squared-meters data have been approximated to the nearest hundreds

Superior Technical Competence

77 employees dedicated to scientific activities, representing over 15% of total workforce

Source: CompanyData

Fine Foods Positioning in the Nutraceuticals Value Chain

Source: Management elaboration

Fine Foods Positioning in the Pharmaceuticals Value Chain

Source: Management elaboration

Attractive Revenues and EBITDA Growth Profile...

Profitability increase driven by an improved product mix and the optimization of production costs

Source: Company Data

…Leading to Consistent Improvements in Profitability

Steady net income growth

Source: Company Data

Healthy Capital Allocation

NET WORKING CAPITAL CAPEX

Efficient working capital management, with collection time structurally lower than payment time

Extraordinary Capex in Tangibles Ordinary Capex in Tangibles

(1) Adjusted adding back the effect of a stand-alone no-recourse ("pro soluto") 2017 factoring transaction of 5€m Note: the split between ordinary and expansionary capex was elaborated according to management accounts Source: Company Data

Shareholding Structure

Source: Management elaboration

Contacts

Fine Foods & Pharmaceuticals N.T.M. S.p.A.

Investor Relations Tel. +39 035 4821382 ir@finefoods.it

CDR Communication

IR Advisor Paola Buratti – paola.buratti@cdr-communication.it Media Relations Marianna Tremolada - marianna.tremolada@cdr-communication.it

Banca Akros S.p.A.

Nomad Viale Eginardo 29, Milano ecm@bancaakros.it