Biesse — Earnings Release 2022

Oct 28, 2022

Consolidated Financial Results at 30 September 2022 approved

• Group backlog 372 mln euro (+27.8% vs september 2021)
• Net sales growing up to 613.4 mln euro in first the 9 months (+16.4% vs september 2021)
• Rising even the EBITDA 70.8 mln euro (+14.4% vs september 2021)
• Net Profit 24.8 mln euro (35.4 mln euro september 2021)

(in Euro million)	IIIQ '22	IIIQ '21	9 months '22	9 months '21
Consolidated Net sales	194.3	172.9	613.4	527.0
EBITDA (gross operating profit)	17.1	20.9	70.8	61.9
EBIT (net operating profit)	9.3*	12.0*	42.6*	31.7*
Net Profit	5.4**	7.0**	24.8**	35.4**
Net Financial Position	79.6 positive	113.2 positive	79.6 positive	113.2 positive

* before non-recurring items **post non-recurring items

Pesaro, 28 October 2022

The Board of Directors of Biesse S.p.A. - a company listed on the Euronext STAR Milan segment - approved the consolidated financial report at 30 September 2022 during the meeting held in Pesaro today.

Economic data – 2022 progressive 9 months:

• o Consolidated net revenues 613.4 mln euro (+16.4% compared to the same period 2021)
• o Added value 255.7 mln euro (+10.1% compared to the same period 2021) incidence on sales 41.7%
• o EBITDA 70.8 mln euro (+14.4% compared to the same period 2021) incidence on sales 11.5% (11.7% at the end of September 2021)
• o EBIT 42.6 mln euro before non-recurring items (+34.2% compared to the same period 2021) incidence on sales 6.9% (6.0% at the end of September 2021)
• o profit before taxes of 36.0 mln euro, 5.9% of revenues (41.2 mln euro 7.8% incidence at the end of September 2021)
• o net profit of 24.8 mln euro, 4.0% of revenues (35.4 mln euro 6.7% incidence at the end of September 2021)
• progressive tax rate 31.2%

Economic data – 2022 Third Quarter:

• o Consolidated net revenues 194.3 mln euro (+12.4% compared to the same period 2021)
• o Added value 74.2 mln euro (+0.1% compared to the period 2021) incidence on sales 38.2%
• o EBITDA 17.1 mln euro incidence on sales 8.8% (20.9 mln of euro 12.1% at the end of September 2021)
• o EBIT before non-recurring items 9.3 mln euro incidence on sales 4.8% (12 mln of euro 6.9% at the end of September 2021)
• o Profit before taxes 7.1 mln euro incidence on sales 3.6% (9.4 mln of euro 5.4% at the end of September 2021)
• o Net profit 5.4 mln euro incidence on sales 2.8% (7 mln euro 4.0% at the end of September 2021) tax rate 23,3%

Financial Position

At 30 September 2022, the Net Financial Position is positive by 79.6 mln euro (without IFRS 16 effects, the Net Financial Position would be positive for 100.9 mln euro).

Compared to the same period last year there is a decrease of 33.6 million euros, while compared to the end of 2021 the negative delta is of 45.0 mln euro mainly motivated by actions to ensure a sustained level of supply. Both negative deltas already include the payment of dividends for 17 mln euro. At the end 30 June 2022 the Net Financial Position was positive for 85 mln euro.

Balance Sheet

As at the end of September 2022, operating working capital amounted to 44.5 mln euro (7.2% of revenues). Shareholders' equity was 261.4 mln euro (250.5 mln euro in September 2021) Net Invested Capital was 182.0 mln euro (137.3 mln euro in September 2021).

ZBIESSEGROUP

Orders - Personnel

In a highly unstable and uncertain environment, the Group's order intake (machinery) in the 9 months 2022 contracted by 9.9% compared to the same period 2021 (progressive of 9 months). The third quarter 2022 is lower by 17.7% compared to the third quarter 2021.

The Group backlog (machines) at 30 September 2022 rose to 372 mln of euro (+27.8% compared to September 2021 and -1.5% compared to December 2021. Less 3.7% compared to June 2022, with an average production visibility that actually is more than 7 months. The total number of Group employees at the end of the IIIQ 2022 is 3,691. Compared to December 2021 this number of Biesse Group employees is lower by 3.6% not counting temporary workers.

Revenue Breakdown

The machines and systems segment dominates with 90.8 compared to 9.2% (net of eliminations) in the Mechatronics segment.

From the geographical point of view, the domestic market accounted for 24.8% of turnover (17.8% as at September 2021)

This is the breakdown (incidence on the consolidated financial statements) of revenues by geographical macroarea:

• Western Europe 53.0% (50.3% at 30 september 2021) including Italy
• Eastern Europe 13.4% (16.6% at 30 september 2021)
• North America 18.7% (17.3% at 30 september 2021)
• Asia Pacific 12.2% (13.1% at 30 september 2021)
• Rest of World 2.7% (2.8% at 30 september 2021)

Despite the exposure to countries involved in the conflict in Ukraine remains not relevant (<3 pct of the backlog), the Group is closely monitoring its activities in the area.

Notice of filing half-yearly report

The 28 October 2022, the Consolidated Report at 30 September 2022, as approved by the current Board of Directors will be filed at the registered office of Biesse at Via della Meccanica 16, Pesaro.

This document is made available on the company website www.biessegroup.com I.R. area and on the authorised storage site .

Conference Call

At 5 p.m. this afternoon, Biesse will hold a phone conference call to comment on the Group's achievements during the first 9 months of 2022. A short supporting presentation will be made available on the company website www.biessegroup.com, Investor Relations area, and filed in the storage area.

Also on the company website (I.R. area) are instructions how to connect to the conference call.

ZBIESSEGROUP

2022 expectations

The results achieved in the first 9 months are confirming our solid and strong positioning within the objectives and targets of the Three-Year Plan approved last year.

On the sidelines of today's Board of Directors meeting, the Group C.F.O. Pierre La Tour commented:

The persistent international uncertainties and instability do not allow us to project positive scenarios for the immediate future, despite the brilliant economic and financial performance achieved in the nine months of this year. The tensions concerning the main raw materials and the increased cost of energy are obvious distorting factors that

cannot but have impacts on our results. To complicate, the forecast of a substantial slowdown in demand and the reappearance of the inflation that may leads to increases in interest rates.

There are also inevitable negative repercussions - both direct and indirect - arising from the sanctions applied to the countries involved in the conflict in Eastern Europe, while it is becoming increasingly necessary to monitor epidemiological developments worldwide.

Internally, we are continuing with the implementation of the One Company project, because we believe that a reorganization of the Group structure also introduces greater flexibility stimulating rapid simplification of the business processes.

The permanently positive net financial position supports our decision to continue investing in the product development; we will invest in implementing new technical solutions that focus on increasing connectivity and automation."

"The Financial Reporting Officer (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."

Biesse is an international company that designs, manufactures and distributes systems and machines for processing wood, glass, stone, metal, plastic and composite materials for the furniture, housing & construction, automotive and aerospace sectors. Founded in Pesaro in 1969 by Giancarlo Selci, it has been listed in the STAR segment of Euronext Milan since 2001. It generates approximately 85% of its consolidated turnover abroad, operating in more than 160 countries, thanks to 13 production plants and a direct presence in the main world markets.

Its customers include industry-leading companies and prestigious Italian and international design brands. It currently has more than 4,200 employees.

ATTACHMENTS

Income Statement at 30 September 2022

	ATTACHMENTS
Income Statement at 30 September 2022
	30 September 2022	% on sales	30 Septmber 2021	% on sales	CHANGE %
Euro 000's
Revenue from sales and services	613,371	100.0%	526,993	100.0%	16.4%
Change in inventories, wip, semi-finished products and finished products	39,986	6.5%	24,126	4.6%	65.7%
Other Revenues	5,314	0.9%	3,924	0.7%	35.4%
Revenue	658,670	107.4%	555,044	105.3%	18.7%
Raw materials, consumables, supplies and goods	(289,982)	(47.3)%	(238,906)	(45.3)%	21.4%
Other operating costs	(112,946)	(18.4)%	(83,809)	(15.9)%	34.8%
Personnel expense	(184,955)	(30.2)%	(170,434)	(32.3)%	8.5%
Gross operating result	70,788	11.5%	61,895	11.7%	14.4%
Depreciation and amortisation	(24,358)	(4.0)%	(25,006)	(4.7)%	(2.6)%
Provisions	(3,839)	(0.6)%	(5,157)	(1.0)%	(25.6)%
Operating result before non recurring items	42,591	6.9%	31,731	6.0%	34.2%
Impairment losses and non recurring-items	1,568	0.3%	12,820	2.4%	(87.8)%
EBIT Operating result	44,158	7.2%	44,551	8.5%	(0.9)%
Financial income	729	0.1%	306	0.1%	138.1%
Financial expense	(1,778)	(0.3)%	(2,365)	(0.4)%	(24.8)%
Net exchange rate losses	(7,074)	(1.2)%	(1,359)	(0.3)%	-
Pre-tax result	36,035	5.9%	41,133	7.8%	(12.4)%
Income taxes	(11,234)	(1.8)%	(5,749)	(1.1)%	95.4%
		4.0%	35,384	6.7%	(29.9)%

Statement of Financial Position at 30 September 2022

Statement of Financial Position at 30 September 2022
	30 September	31 December
Euro 000's	2022	2021
Intangible assets	90,686	97,989
Property, plant and equipment	117,731	117,203
Financial assets	4,041	4,578
Non-current assets	212,459	219,770
Inventories	227,639	179,417
Trade receivables and contract assets	139,688	125,962
Trade payables	(181,183)	(186,660)
Contract liabilities	(141,593)	(127,093)
Net operating working capital	44,552	(8,375)
Post-employment benefits	(11,553)	(13,318)
Provision for risk and charges	(24,112)	(24,850)
Other net payables	(55,107)	(63,274)
Net deferred tax assets	15,623	14,660
Other net liabilities	(75,149)	(86,781)
Net invested capital	181,862	124,614
Share capital	27,403	27,393
Result for the previous year and other reserves	209,034	186,957
Result for the year	24,760	34,018
Non-controlling interests	242	849
Equity	261,439	249,217
	28,484	29,594
		(27,098)
Bank loans and borrowings and loans and borrowings from other financial backers
Other financial assets	(7,157)
Cash and cash equivalents Net financial indebtedness	(100,903) (79,577)	(127,099) (124,603)

Net Financial Position 30 September 2022