Biesse

Earnings Release • Oct 25, 2024

2024 Consolidated Financial Results as of September 30 th approved

Conference call to comment the results postponed to Monday, October 28th

During its meeting held today, the Board of Directors of Biesse S.p.A. ("Biesse" or the "Company") – company listed at the Euronext STAR segment of Milan Stock Exchange – approved the Consolidated Financial Report for the third quarter of 2024.

Conference call to comment the approved Q3 2024 Financial Statements, originally planned for today at 4.30 p.m., has been postponed to Monday, 28 October 2024, 4.30 p.m. because of unexpected and undelayable commitments of the top management. The details needed for taking part in the conference call remain the same and are shared on the company's website www.biesse.com, Governance and Investors area.

In a still declining market, marginality remains positive despite the sales' reduction.

Consolidated results achieved by the Group in the first nine months of 2024:

• Consolidated net revenues of 560.8 million euros, (5.9%) compared to Q3 2023
• EBITDA of 44.0 million euros, (29.8%) compared to Q3 2023, 7.9% of revenues (10.5% in Q3 2023)
• EBIT, after non-recurring events, of 11.0 million euros, (61.0%) compared to 28.1 million euros recorded in Q3 2023, 2.0% of revenues (4.7% in Q3 2023)
• Net profit of 2.6 million euros, (83.9%) compared to Q3 2023, 0.5% of revenues (2.7% in Q3 2023)
• Tax rate 62.4% (33.0% in Q3 2023)

September 2024 (in € milion)	Q3 2024	Q3 2023	Variation Q3 2024 vs. Q3 2023
			(in € million)	In %
Consolidated Net Revenues	560.8	595.7	-34.9	-5.9%
EBITDA	44.0	62.7	-18.7	-29.8%
Operating result (EBIT)*	10.9	28.1	-17.2	-61.0%
Net Profit/Loss	2.6	15.9	-13.3	-83.9%
Net Financial Position (in € million) excluded IFRS16	+4.2	+109.9	-105.7	-96.2%
Net Financial Position (in € million)	-28.1	+90.1	-118.2	-131.2%

(*) after non-recurring events

Net Financial Position

As of 30th September 2024, the Group Net Financial Position was positive for 4.2 million euros. Including the impact of 32.3 million euros deriving from the application of IFRS16 the Net Financial Position results, considering this accounting principle, negative for 28.1 million euros.

Compared to the end of year 2023, the net financial position decreases by 121.0 million euros, mainly because of the financial disbursement for the acquisition of GMM Finance S.r.l., holding of the GMM Group, provisionally equal to 69 million euros, while the remaining part of the variation is related to the consolidation of the net financial debt of GMM Group, to the payment of dividends in May for a total amount of 3.8 million euros, as well as to the dynamics related to net working capital, despite the good results obtained in the operational management.

Balance sheet

Group Shareholders' Equity: 263.9 million euros Net Invested Capital: 291.9 million euros Net Operating Current Assets positive at 96.3 million euros

Quarterly Trend

Trend revenues and EBITDA by Quarter, in mil. €

biesse.com

Revenue breakdown

Geographically, the Group's sales breakdown by macro-area as of 30th September 2024 is:

• EMEA 63% (69% in Q3 2023)
• AMERICAS 23% (20% in Q3 2023)
• APAC 14% (11% in Q3 2023)

Comment

"The results achieved during the first nine months of 2024 and approved today – commented the Group CFO Nicola Sautto – bear testimony to how the prudent strategy pursued by Biesse remains the most appropriate to maintain a positive profitability in a really complex economic and financial scenario. In terms of revenues, the first nine months of 2024 has confirmed a decreasing trend, in line with our forecasts.

From a business point of view, the order portfolio at the end of September 2024 has been substantially in line versus year-end 2023, with a value of 276.0 million euros, positively influenced by the acquisition of GMM Group (while the value as of 31 December 2023 was equal to 278 million euros) in a context of general slowdown of order intake already begun in 2023, following the reduction of government incentives launched during the pandemic, particularly in the exceptionally stimulated Italian domestic market.

Despite the difficult context, we continue with determination the process of organizational transformation, in order to reach a sizing of company's structure adequate to the new model of business defined by the One Company project, and the rationalization of costs coherently with the volumes generated.

Moreover, we are evaluating to accelerate the main projects involved in the three-year plan 2024-2026, between them new technical solutions with an ever increasing connectivity and automation, in the absolute conviction of the goodness of the initiatives and with the aim to achieve as soon as possible the benefits included in the plan itself.

We are working to prepare the sustainability statements in full compliance with the legislative requirements and to make them integral part of our management report, guaranteeing transparency and adherence to the ESG principles for a major uniformity and comparability of the information shared with our stakeholders.

Our financial position, which remains solid even after the acquisition of GMM Group and the results obtained up to now, represents an important baseline to sustain our expansion.

Significant difficulties persist in forecasting external phenomena impacting on demand, as enduring restrictive monetary policies that are directly impacting interest rates and which only recently have recorded signs of loosening, reduction of government incentives and sharpening international tensions.

For the next quarter, we forecast a trend of the revenues and of the main economic indicators substantially in line with the other three quarters of the year".

Conference Call

Biesse will hold a conference call on Monday 28 October 2024 at 4.30 p.m. to comment on the approved Q3 2024 Financial Statements. The supporting presentation will be available on the corporate website www.biesse.com, Governance and Investors area. The same presentation will also be made available on the official storage website .

The details needed for taking part in the conference call in question are on the company's website, in the section dedicated to investors.

"The Financial Reporting Officer (Nicola Sautto) 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"

BIESSE - We are an international company that manufactures integrated lines and machines to process wood, glass, stone, plastic and composite materials. Founded in Italy in 1969 and listed in the Euronext STAR segment of the Italian Stock Exchange, we support the business evolution of our customers in the furniture & construction, automotive and aerospace sectors. Today, about 80% of our consolidated turnover is achieved abroad by an evergrowing global network with 3 manufacturing areas and showrooms in 19 countries. Thanks to our rooted competence embodied by 4.100 employees, we empower the imagination of industry leading companies and prestigious names in Italian and international design to make the potential of any material shine.

Nicola Sautto Chief Financial Officer and Investor Relator T +39 0721 439439 M +39 334 640 5271 nicola.sautto@biesse.com

Alternative performance indicators

Management uses some performance indicators, which are not identified as accounting measures under the IFRS (non-GAAP measures), to better assess Biesse's performance. The criterion applied by Biesse to set these indicators might not be the same as that adopted by other groups, and the indicators might not be comparable with those set by the latter. These performance indicators, which were set in compliance with the Guidelines on performance indicators issued by ESMA/2015/1415 and adopted by CONSOB with its communication No. 92543 of 3 December 2015, refer to performance in the accounting period covered by this Business Plan and the previous years used for comparison. Performance indicators are to be regarded as complementary to and not a substitute for financial data prepared in accordance with IFRS. Hereafter is a description of the main indicators adopted.

Value Added

This indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, costs and revenues arising from transactions that Management considers as non-recurring relative to Biesse's ordinary operations, as well as personnel expense.

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation)

This indicator is defined as the Profit (Loss) for the period before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, as well as costs and revenues arising from transactions that Management considers as non-recurring relative to Biesse's ordinary operations.

Operating Profit or EBIT (Earnings Before Interest and Taxes)

This indicator is defined as Profit (Loss) for the year before income taxes, financial income and expenses, and foreign exchange losses and gains.

Net Operating Working Capital:

This indicator is calculated as the total of Inventories, Trade receivables and Contract assets, net of Trade payables and Contract liabilities.

Net Working Capital

This indicator is calculated as the total of Net Operating Working Capital and other Current Assets and Liabilities, including Provisions for short-term risks and charges.

Net Invested Capital

This indicator represents the total of Current and Non-Current Assets, excluding financial assets, net of Current and Non-Current Liabilities, excluding financial liabilities.

Net financial position

This indicator is calculated in compliance with the provisions contained in Communication No. 5/21 of 29 April 2021 issued by Consob, which refers to the ESMA Recommendations of 4 March 2021.

Financial statements Profit & Loss - Income Statement as of 30th September 2024

	30th September		30th September
	2024	%on sales	2023	% on sales	CHANGE %
Euro 000's
Revenue from sales and services	560 803	100.0%	595.656	100.0%	(5.9)%
Change in inventories, wip, semi-finished products and finished products	1,312	02%	(20,730)	(3.5)%	(106.3)%
Other Revenues	4,796	0.9%	4,348	0.7%	10.3%
Value of production	566,911	101.1%	579 273	972%	(2.1)%
Raw materials, consumables, supplies and goods	(223,139)	(39.8)%	(225,904)	(37.9)%	(12)%
Other operating costs	(115,904)	(20.7)%	(108,512)	(182)%	6.8%
Personnel expense	(183,826)	(32.8)%	(182,109)	(30.6)%	0.9%
Eblida Adjusto d	44,042	7.9%	62,748	10.5%	(29.8)%
Depreciation and amortisation	(26,978)	(4.8)%	(23,270)	(3.9)%	15.9%
Provisions	(2,583)	(0.5)%	(5,166)	(0.9)%	(50.0)%
Ebit adjusted	14,481	2.6%	34,311	5.8%	(57.8)%
Non recurring items	(3,531)	(0.6)%	(6,237)	(1.0)%6	(43.4)%
Ebit	10,950	2.0%	28,074	4.7%	(6 1.0)%
Financial income	2,102	0.4%	1,418	0.2%	48.2%
Financial expense	(4,759)	(0.8)%	(1,852)	(0.3)%	157.0%
Exchange rate income and expenses net	(1,447)	(0.3)%	(3,804)	(0.6)%	(62.0)%
Pro-tax result	6,846	1.2%	23,836	4.0 %	(71.3)%
Income taxes	(4,274)	(0.8)%	(7,888)	(1.3)%6	(45.8)%
Not result	2,572	0.5%	15 9 49	2.7%	(83.9)%

Balance Sheet as of 30th September 2024

Balance Sheet as of 30th September 2024
	30th Sep temb er 2024	31st Decemb er 2023
Euro 000's
Intangible assets	133,939	83,446
Property, plant and equipment	138,694	117,213
Financial assets	4,161	3,519
Non-current assets	276 ,79 4	20 4,179
Inventories	200,530	168,393
Trade receivables and contract assets	114,421	116,619
Trade payables	(120,868)	(135,281)
Contract liabilities	(97,770)	(108,049)
Net op erating working cap ital	9 6 ,313	41,6 82
Post-employment benefits	(12,670)	(10,041)
Provision for risk and charges	(36,469)	(37,512)
Other net payables	(43,598)	(47,175)
Net deferred tax assets	11,567	17,362
Other net liab ilities	(81,170 )	(77,36 5 )
Net invested cap ital	29 1,9 37	16 8,49 5
Share capital	27,403	27,403
Result for the previous year and other reserves	233,882	221,562
Net Result	2,572	12,483
Equity	26 3,85 6	26 1,448
Bank loans and borrowings and loans and borrowings from other financial backers	131,717	28,279
Other financial assets	(23,985)	(16,758)
Cash and cash equivalents	(79,651)	(104,473)
Net financial p osition	28,0 81	(9 2,9 5 3)
Total sources of funding	29 1,9 37	16 8,49 5

Net financial position as of 30th September 2024

Euro 000 s	3 Oth September 2024	30th June 2024	31ct March 2024	31st December 2023	30th September 2024
Financial assets:	403 636	404783	117,542	124231	116 498
Current financial assets	23,985	16,112	16.696	16,758	24,435
Cash and cash equivalents	79.651	85,671	100,846	104,473	95.063
Short-term financial lease payables	(10,257)	(9,882)	(0.111)	(7,027)	(6,252)
Short-term bank loans and borrowings and loans from other financial backers	(99,221)	(62 415)	(85,093)	(2,358)	(5,436)
Short-term not financial position	(5,842)	29,486	23,339	111,847	104 841
Medium/Long-term financial lease payables	(22,002)	(21,953)	(20.849)	(18,478)	(14,249)
Medium/Long-term bank loans and borrowings	(41)	(14,737)	(বি)	(264)	(284)
Trade payables and other medium/long-term payables	(406)	(206)	(142)	(152)	(163)
Medium / Long-term net financial position	(22,239)	(36,896)	(21,036)	(18,894)	(14 696)
Total net financial position	(28,081)	(7,411)	2,302	92,953	00 415