Biesse — Interim / Quarterly Report 2022

Jul 29, 2022

Consolidated Interim Report as at 30 June 2022 approved

• Group Backlog 386 million euros
• Net revenues more than 419 million euros (+18.3% vs June 2021)
• EBITDA 53.7 million euros margin 12.8% (+30.9% vs June 2021)
• Net Profit 19.4 million euros

amounts in millions of euros	1st Half 2022	2nd Quarter 2022	1st Half 2021
net revenues	419.1	222.5	354.1
gross operating profit (EBITDA)	53.7	27.6	41.0
net operating profit (EBIT)	33.3	18.1	19.7*
net profit	19.4	9.6	28.4**
net financial position	85.0 positive		113,1 positive

* before positive non-recurring events for 14 million euros - **after positive non-recurring events for 14 million euros

Pesaro, 29 July 2022

The Board of Directors of Biesse S.p.A. - a company listed on the Euronext STAR Milan segment - approved the consolidated financial report for the first half of 2022 during the meeting held in Pesaro today. In the period 1/1/22 – 30/6/22, the Biesse Group recorded:

Economic data:

• o consolidated net revenues of 419.1 million euros (+18.3% compared to the same period in 2021)
• o added value of 181.6 million euros (+14.8% compared to the same period in 2021), 43.3% of revenues
• o EBITDA of 53.7 million euros (+30.9% compared to the same period in 2021), 12.8% of revenues (11.6% in June 2021)
• o operating profit (EBIT) of 33.3 million euros, 7.9% of revenues (5.6% in June 2021) in June 2021 EBIT -after non-recurring events- 33.7 million euros
• o profit before taxes of 29.0 million euros, 6.9% of revenues (9.0% in June 2021)
• o net profit of 19.4 million euros, 4.6% of revenues (8.0% in June 2021)
  • tax rate of 33.1%

Financial Position

At 30 June 2022, the Net Financial Position is positive by 85 million euros (without IFRS 16 effects, the Net Financial Position would be positive for 107.1 million euros). On 25 May a gross dividend was paid of 0.624 per share with a total payout of 17.1 million euros.

Without taking into account the dividends paid, compared to the same period last year there is a decrease of 11.0 million euros, while compared to the end of 2021 - using the same criterion (without the dividends paid) - the figure to 30 June 2022 shows a decrease of 22.5 million euros.

Balance Sheet

As at the end of June 2022, operating working capital amounted to 28.5 million euros (6.8% of revenues). Shareholders' equity was 253.7 million euros (242.3 million euros in June 2021) Net Invested Capital was 168.7 million euros (129.9 million euros in June 2021).

Orders - Personnel

In a highly unstable and uncertain environment, the Group's order intake (machinery) only contracted by 6.3% compared to the same period in 2021.

The Group's order backlog (machinery) at 30 June 2022 rose to 386 million euros, +40.7% compared to June 2021 and +1.1% compared to December 2021, with an average production visibility of more than 6 months. The total number of Biesse Group employees at the end of the first half of 2022 is 4,310. Compared to December 2021, the number of employees (not counting temporary workers) is 2.09% lower.

Revenue Breakdown

The machines and systems segment dominates with 90.7% compared to 9.3% (net of eliminations) in the Mechatronics segment.

From the geographical point of view, the domestic market accounted for 25.7% of turnover (16.7% as at June 2021) This is the breakdown (incidence on the consolidated financial statements) of revenues by geographical macroarea:

• Western Europe 53.7% (49.9% in the first half of 2021) including Italy
• Eastern Europe 14.4% (16.7% in the first half of 2021)
• North America 17.2% (17.0% in the first half of 2021)
• Asia Pacific 11.7% (13.4% in the first half of 2021)
• Rest of World 3.0% (3.0% in the first half of 2021)

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

Notice of filing half-yearly report

Tomorrow 30 July, the Consolidated Half-Yearly Report at 30 June 2022, as approved by the current Board of Directors and containing the certification issued by the independent auditors Deloitte & Touche S.p.A., 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 . A corresponding notice will be published in ILSOLE24ORE newspaper on 30/7.

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 half 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.

2022 expectations

The results achieved in the first half 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, Group CFO Pierre La Tour commented:

"The results approved today depict an undoubtedly positive situation, but it's necessary to maintain a cautious attitude for the immediate future. In the recent months there has been a slowdown in demand as a result of the conflict in Ukraine, persistent pandemic conditions extreme volatility in the financial markets and the evident persistence of unfavourable conditions on raw materials and logistic, which are obvious distorting factors that will inevitably affect our results. We are suffering from the negative repercussions of the sanctions applied to the countries involved in the conflict in Eastern Europe; economic sanctions -as such – also have negative repercussions on the way we do business and therefore on our short-term prospects.

Internally, the One Company project continues, with renewed determination, which is focused on the following directives: the simplification of business processes, the increasingly important structuring of markets, and the digitalisation of the Group.

From a financial point of view, we continue to have a very positive situation, which will be able to support growth both internally and externally. We will not give up investment in research and development, just as we will continue to expand and strengthen our international presence. The implementation of new technical solutions and the increasing connectivity of our products are an irreversible process and part of our DNA. We focus our attention on the concepts of sustainability and social responsibility, elements that generate concrete value and vehicles for improving our performance."

"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 a total of 4,310 employees.

ATTACHMENTS

Income Statement at 30 June 2022

	30 June 2022	% on sales	30 June 2021	% on sales	CHANGE %
Euro 000's
Revenue from sales and services	419,084	100.0%	354,117	100.0%	18.3%
Change in inventories, wip, semi-finished products and finished products	38,319	9.1%	18,183	5.1%	110.7%
Other Revenues	3,698	0.9%	2,296	0.6%	61.1%
Revenue	461,101	110.0%	374,596	105.8%	23.1%
Raw materials, consumables, supplies and goods	(207,060)	(49.4)%	(160,910)	(45.4)%	28.7%
Other operating costs	(72,489)	(17.3)%	(55,500)	(15.7)%	30.6%
Personnel expense	(127,859)	(30.5)%	(117,171)	(33.1)%	9.1%
Gross operating result	53,693	12.8%	41,014	11.6%	30.9%
Depreciation and amortisation	(16,317)	(3.9)%	(16,612)	(4.7)%	(1.8)%
Provisions	(4,111)	(1.0)%	(4,683)	(1.3)%	(12.2)%
Operating result before non recurring items	33,266	7.9%	19,719	5.6%	68.7%
Impairment losses and non recurring-items			13,999	4.0%
Operating result	33,266	7.9%	33,718	9.5%	(1.3)%
Financial income	288	0.1%	216	0.1%	33.3%
Financial expense	(1,253)	(0.3)%	(1,480)	(0.4)%	(15.3)%
Exchange rate income and expenses (net)	(3,327)	(0.8)%	(711)	(0.2)%
Pre-tax result	28,973	6.9%	31,743	9.0%	(8.7)%
Income taxes	(9,590)	(2.3)%	(3,317)	0.9%
Result for the period	19,383	4.6%	28,426	8.0%	(31.8)%

Statement of Financial Positions at 30 June 2022

	30 June	31 December
	2022	2021
Euro 000's
Intangible assets	93,898	97,989
Property, plant and equipment	118,587	117,203
Financial assets	3,995	4,578
Non-current assets	216,480	219,770
Inventories	227,123	179,417
Trade receivables and contract assets	148,874	125,962
Trade payables	(205,746)	(186,660)
Contract liabilities	(141,765)	(127,093)
Net operating working capital	28,486	(8,375)
Post-employment benefits	(11,723)	(13,318)
Provision for risk and charges	(25,403)	(24,850)
Other net payables	(54,741)	(63,274)
Net deferred tax assets	15,614	14,660
Other net liabilities	(76,252)	(86,781)
Net invested capital	168,714	124,614
Share capital	27,403	27,393
Profit for the previous year and other reserves	206,688	186,957
Result for the period	19,341	34,018
Non-controlling interests	247	849
Equity	253,679	249,217
Bank loans and borrowings and loans and borrowings from other financial backers	32,236	29,594
Other financial assets	(7,266)	(27,098)
Cash and cash equivalents	(109,935)	(127,099)
Net financial indebtedness	(84,965)	(124,603)
Total sources of funding	168,714	124,614

Net Financial Position 30 June 2022

Euro 000's	30th June 2022	31st March 2022	31st December 2021	30th June 2021
Financial assets:	117,201	136,539	154,197	178.143
Current financial assets	7,266	27,141	27,098	27,682
Cash and cash equivalents	109,935	109,398	127,099	150,461
Short-term financial lease payables	(8,524)	(7,194)	(7,384)	(7,876)
Short-term bank loans and borrowings and loans from other financial backers	(7,493)	(5,826)	(5,998)	(34,996)
Short-term net financial position	101,183	123,520	140,815	135,271
Medium/Long-term financial lease payables	(15,508)	(15,179)	(15,320)	(21,303)
Medium/Long-term bank loans and borrowings	(525)	(395)	(680)	(915)
Trade payables and other medium/long-term payables	(185)	(285)	(213)
Medium/Long-term net financial position	(16,218)	(15,859)	(16,212)	(22,218)
Total net financial position	84,965	107,661	124,603	113,053