Informazione Regolamentata n. 0957-22-2023		Data/Ora Ricezione 09 Maggio 2023 11:54:51	Euronext Milan
Societa'	:	DIASORIN
Identificativo Informazione Regolamentata	:	176567
Nome utilizzatore	:	DIASORINN02 - Ragazzo
Tipologia	:	2.4; REGEM
Data/Ora Ricezione	:	09 Maggio 2023 11:54:51
Data/Ora Inizio Diffusione presunta	:	09 Maggio 2023 11:54:52
Oggetto	:	FOR FISCAL YEAR 2023	Q1'23 REVENUES CONFIRM GUIDANCE
Testo del comunicato

Vedi allegato.

Q1'23 REVENUES CONFIRM GUIDANCE FOR FISCAL YEAR 2023

REVENUES: € 290 MILLION, -19% (-18% AT CONSTANT PERIMETER¹ )
ADJUSTED² EBITDA³ : € 98 MILLION, -35%, EQUAL TO 34% OF GROUP REVENUES
CONFIRMED GUIDANCE FOR FISCAL YEAR 2023

Saluggia (Italy), May 9, 2023 - The Board of Directors of DiaSorin S.p.A. (FTSE MIB: DIA), examined and approved the consolidated economic and financial results of the first quarter 2023.

Amounts in million of euros	Q 1		change
	2022	2023	amount	% @ current	% @ CER
Revenues	357.6	289.6	-68.0	-19.0%	-20.6%
ex-COVID Immunodiagnostics	159.7	171.8	+12.1	+7.6%	+6.3%
ex-COVID Molecular Diagnostics	46.4	50.7	+4.3	+9.3%	+5.5%
Licensed Technologies	54.7	45.9	-8.8	-16.1%	-19.0%
COVID	96.7	21.2	-75.6	-78.1%	-78.5%
Revenues at constant perimeter1	347.5	285.1	-62.4	-18.0%	-19.6%
Adjusted2 EBITDA3	149.8	97.5	-52.3	-34.9%	-35.6%
Adjusted 2 EBITDA 3 margin	41.9%	33.7%	-822 bps
EBITDA3	146.6	92.7	-53.9	-36.7%	-37.5%
EBITDA 3 margin	41.0%	32.0%	-898 bps
Adjusted2 EBIT	126.2	74.8	-51.4	-40.7%
Adjusted 2 EBIT margin	35.3%	25.8%	-945 bps
EBIT	113.6	60.3	-53.4	-47.0%
EBIT margin	31.8%	20.8%	-1,097 bps
Adjusted2 net profit	96.4	58.5	-37.8	-39.3%
Adjusted 2 Net profit on Revenues	27.0%	20.2%	-674 bps
Net profit	82.3	41.7	-40.6	-49.3%
Net profit on Revenues	23.0%	14.4%	-861 bps

COMMENTS ON ECONOMIC RESULTS

REVENUES: € 290 million, -19% (-21% at CER). At constant perimeter¹ , the change is -18% (-20% at CER) and, net of COVID and molecular respiratory business, the change is +3% at CER.

The following are the revenue trends of the different business lines:

Ex-COVID Immunodiagnostics: € 172 million, +8% (+6% at CER), driven by the increase of CLIA test sales (+9% at CER) which largely offset the expected decrease in sales of Vitamin D, ELISA panel and instruments. Noteworthy is the excellent performance of the European and North American markets and the negative performance recorded in the Chinese market.
Ex-COVID Molecular Diagnostics: € 51 million, +9% (+6% at CER), as a result of both the positive performance of non-respiratory (+4% at CER) and respiratory panels (+9% at CER).
Licensed Technologies: € 46 million, -16% (-19% at CER), as a consequence of the different perimeter¹ , the expected delay in instrument sales due to shortages of some electronic components and the pattern of some major orders from strategic partners. At constant perimeter¹ , the revenue performance would have been -7% (-11% at CER).
COVID: € 21 million, in line with expectations and equal to -78% at current and constant exchange rates.

¹Excluding the Flow Cytometry business, divested in February 2023.

² With reference to the indicators Adjusted Gross Margin, Adjusted EBITDA, Adjusted EBIT, and Adjusted Net Income, please refer to the table at the end of this Press Release.

³EBITDA is defined as the "Operating Result", gross of amortization and depreciation of intangible and tangible assets. EBITDA is a measure used by the Company to monitor and evaluate the Group's operating performance and is not defined as an accounting measure in IFRS and therefore shall not be considered an alternative measure for assessing the Group's operating result performance. Since the composition of EBITDA is not regulated by the reference accounting standards, the criterion of determination applied by the Group may not be homogeneous with that adopted by other operators and/or groups and therefore may not be comparable

The following is the revenue performance by geographic area, net of the contribution of COVID products:

North America Direct: € 127 million, +1% (-3% at CER); net of Flow Cytometry business, the increase amounted to +4% (in line with Q1 2022 at CER).

Excellent performance of the immunodiagnostic business (+10% at CER), as a consequence of the strong growth in sales of CLIA tests net of vitamin D (+15% at CER), driven by the success of the strategy aimed at increasing penetration in the US hospital segment. This growth was partially offset by the expected negative trend in Vitamin D test sales. The Molecular Diagnostics business grew by 4% at CER due to the positive performance of non-respiratory panels, partially offset by lower sales of respiratory panels as a result of a flu season concentrated in the last months of 2022. The Licensed Technologies business decreased by 22% at CER due to the different perimeter¹ , the expected delay in instrument sales as a result of shortages of some electronic components, and the pattern of some major orders from

strategic partners.

Europe Direct: € 96 million, +8% (+9% at CER). Growth was mainly driven by the good performance of the immunodiagnostics business (+10% at CER) and the molecular diagnostics business.

Notably, CLIA revenues net of vitamin D grew 14% at CER, led by the performance of specialty testing.

On the other hand, the Licensed Technologies business recorded a negative trend (-22% at CER), mainly due to the different scope of consolidation¹ , while that of the molecular business was positive.

Rest of the World: € 45 million, -3% (-4% a CER), primarily due to the expected decline in revenues recorded in the Chinese market (due to the impacts of COVID).

ADJUSTED² GROSS PROFIT: € 192 million, -19%, equal to 66% of revenues, in line with that recorded in the same period of the previous year, despite the reduction in sales of COVID products, thanks to initiatives implemented to contain costs and synergies from the Luminex integration.

ADJUSTED²EBITDA³ : € 98 million, -35% (-36% at CER), equal to 34% of revenues at current and constant exchange rates. The reduction in profitability compared to Q1 2022 (42%) is mainly a consequence of lower COVID revenues which, in Q1 last year, had recorded the highest value in 2022 (€ 97 million), and the resulting reduction in operating leverage.

ADJUSTED² EBIT: € 75 million, -41%; equal to 26% of revenues.

NET FINANCIAL EXPENSES: € 6 million (€ 7 million in Q1 2022); net of financial expenses related to the debt instruments and convertible issued to finance the Luminex acquisition transaction, Q1 2023 would record net financial income of € 1 million.

INCOME TAXES: € 12 million, with a 23% tax rate, in line with that recorded in Q1 2022; net of estimated tax effects on adjustment items (detailed in the attachments section of this press release) taxes would amount to € 17 million (€ 28 million in Q1 2022).

ADJUSTED² NET PROFIT: € 59 million, -39%; equal to 20% of revenues (27% in Q1 2022).

COMMENTS ON FINANCIAL RESULTS

CONSOLIDATED NET FINANCIAL DEBT: -€ 849 million (-€ 907 million at December 31, 2022). The change, equal to +€ 58 million, is related to the operating cash flow generation during Q1 2023 and the proceeds relating to the sale of the Flow Cytometry business.

FREE CASH FLOW⁴ : € 28 million at March 31, 2023 (€ 116 million at March 31, 2022). The change is attributable to the decrease in EBITDA commented above and to the increase of working capital, as a consequence of some non-recurring events, such as the consolidation of the U.S. ERP systems (part of the Luminex integration process), the sale of the Flow Cytometry business and the higher italian-VAT credits deriving from the corporate retructuring in Italy, which took place in 2022.

These events are temporary and destined to subside over the next quarters of 2023.

⁴ Free Cash Flow equals net cash flow generated from operating activities including uses for investment and before payment of interest and acquisitions of companies and businesses.

BUSINESS HIGHLIGHTS

MOLECULAR DIAGNOSTICS: U.S. Food and Drug Administration 510(K) clearance of the Simplexa™ COVID-19 Flu A/B assay to detect Flu A, Flu B, and SARS-CoV-2 viruses in about an hour.

LICENSED TECHNOLOGIES: sale, in February 2023, of the assets related to the Flow Cytometry & Imaging business unit to Cytek® Biosciences – an operation in line with the strategic priorities communicated to the market following the acquisition of Luminex.

BEGINNING OF TREASURY SHARES PURCHASE PROGRAM

The Board of Directors approved the launch of a share buyback program on the basis of the authorization resolution approved by the Shareholders' Meeting on April 28, 2023, for the purposes envisaged by art. 5 of Regulation (EU) n. 596/2014 and, in particular, in order to fulfill the obligations deriving from the stock incentive program dedicated to key executives of DiaSorin S.p.A. and of the companies directly or indirectly controlled by it, called the "Stock Option Plan 2023 - DIASORIN S.p.A.", approved by the aformentioned Shareholders' Meeting, as well as serving the other various incentive plans approved by the Company. The purchases will be made according to the modalities and within the terms established by the aformentioned resolution of the Shareholders' Meeting, in compliance with the trading conditions set forth by art. 3 of (UE) Delegated regulation 2016/1052, for a maximum quantity of n. 610,000 ordinary shares of the Company, equal to 1.090% of the share capital, within the term of 18 months from the date of the aformentioned resolution of the Shareholders' Meeting, and therefore by October 28, 2024. The purchases will take place at a consideration not exceeding the highest price between the price of the last independent transaction and the price of the highest independent offer current in the trading venues where the purchase is made, it being understood that the unit price cannot in any case be lower by a minimum of 15% and higher by a maximum of 15% compared to the official DiaSorin share price of the trading session preceding each individual purchase transaction. In the case of purchases, DiaSorin will communicate the details of the purchases made and any other element required by the applicable legislation by the end of the seventh trading day following the execution date of the transaction. Any subsequent changes to the aforementioned purchase program and to the information already published will be promptly communicated by the Company. It should also be noted that as of today the Company holds no. 2,430,372 treasury shares in portfolio, equal to approximately 4.344% of the share capital. For any further details, please refer to the relative Explanatory Report of the Board of Directors pursuant to art. 125-ter Legislative Decree 58/1998, available on the Company's website www.diasoringroup.com (Section Governance/Shareholders' Meeting/2023).

2023 GUIDANCE AT 2022 CONSTANT EXCHANGE RATES

DiaSorin confirms the 2023 guidance as follows:

TOTAL REVENUES: approx. -14%
REVENUES AT CONSTANT PERIMETER¹ : approx. -11%, of which:
- Ex-COVID revenues, net of molecular respiratory business: +4% / +6%
- Molecular respiratory business revenues: approx. -20%
- COVID revenues: about € 60 million (approx. -75% compared to 2022)
EBITDA³ ADJUSTED² MARGIN⁵ : approx. 34%

Mr. Piergiorgio Pedron, the officer in charge of preparing the corporate accounting documents of DiaSorin S.p.A. declares that, pursuant to paragraph 2, Art. 154 bis of the Consolidated Law on Finance, to the best of his knowledge, the accounting information contained in this Press Release corresponds to the documental results, accounting books and records.

***

This press release is available to the public at the registered office of the Company and is also published on the Company's website (www.diasoringroup.com) under the section "Investors - Financial Corner - Press Releases" and on the centralized storage system named eMarket STORAGE at .

⁵ Ratio of Adjusted EBITDA to Revenues.

***

Q1 2023 results will be presented to the financial community during a conference call on Tuesday, May 9, 2023, at 3:00 P.M. CEST. To participate in the conference call, dial the following numbers:

From Italy + 39 02 8020911
From UK +44 1212 818004
From USA +1 718 7058796

Presentation slides will be made available under the section "Investors - Financial Corner - Presentations" on the Company's website (www.diasoringroup.com) and on the centralized storage system named eMarket STORAGE at prior to the beginning of the conference call.

***

Annex: Financial statements not subject to audit by the Group's Independent Auditors.

ANNEXES

CONSOLIDATED INCOME STATEMENT

	Q1		Change
(Amounts in million of euros)	2022	2023	amount	%
Net Revenues	357.6	289.6	-68.0	-19.0%
Cost of sales	(122.8)	(97.7)	+25.1	-20.4%
Gross profit	234.8	191.9	-42.9	-18.3%
	65.7%	66.3%	+61 bps
Sales and marketing expenses	(68.5)	(72.6)	-4.1	+6.0%
Research and development costs	(22.4)	(23.3)	-0.9	+4.1%
General and administrative expenses	(27.8)	(28.8)	-1.0	+3.6%
Total operating expenses	(118.7)	(124.7)	-6.0	+5.1%
	33.2%	43.1%	+987 bps
Other operating income (expense)	(2.5)	(7.0)	-4.5	+178.4%
non recurring amount	(1.2)	(4.9)	-3.7	+299.4%
EBIT	113.6	60.3	-53.4	-47.0%
	31.8%	20.8%	-1,097 bps
Net financial income (expense)	(7.4)	(6.1)	+1.3	-18.0%
Profit before taxes	106.2	54.2	-52.0	-49.0%
Income taxes	(23.9)	(12.5)	+11.5	-47.9%
Net result	82.3	41.7	-40.6	-49.3%

EBITDA3	146.6	92.7	-53.9	-36.7%
	41.0%	32.0%	-898 bps

REVENUES BY GEOGRAPHY

	Q1		Change
Amounts in millions of euros	2022	2023	amount	%
				@ current	@ CER
North America Direct	125.1	126.9	+1.8	+1.4%	-2.7%
% on total revenues	35.0%	43.8%
Europe Direct	89.0	96.3	+7.4	+8.3%	+8.7%
% on total revenues	24.9%	33.3%
Rest of the World	46.8	45.2	-1.6	-3.4%	-4.4%
% on total revenues	13.1%	15.6%
COVID	96.7	21.2	-75.5	-78.1%	-78.5%
% on total revenues	27.0%	7.3%
Total	357.6	289.6	-68.0	-19.0%	-20.6%

REVENUES BY TECHNOLOGY

% of revenues contributed	Q1
	2022	2023	Change
Immunodiagnostics ex-COVID	44.7%	59.3%	+1,466 bps
Molecular Diagnostics ex-COVID	13.0%	17.6%	+464 bps
Licensed Technologies	15.3%	15.8%	+54 bps
COVID	27.0%	7.3%	-1,973 bps

CONSOLIDATED BALANCE SHEET

(Amounts in million of euros)	12/31/2022	03/31/2023	Change
Goodwill and intangibles assets	1,995.1	1,953.5	-41.6
Property, plant and equipment	268.4	260.1	-8.4
Other non-current assets	38.2	35.4	-2.8
Net working capital	434.0	424.5	-9.5
Other non-current liabilities	(309.4)	(297.6)	+11.7
Net Invested Capital	2,426.4	2,375.8	-50.5
Net Financial Debt	(906.6)	(848.6)	+58.0
Total shareholders' equity	1,519.8	1,527.2	+7.5

CONSOLIDATED STATEMENT OF CASH FLOWS

	Q1
(Amounts in million of euros)	2022	2023

Cash and cash equivalents at the beginning of the period	403.0	241.8
Cash provided by operating activities	134.4	41.2
Cash used in investing activities	(23.0)	(17.6)
Cash provided by the sale of Flow Cytometry business	-	39.2
Cash provided/(used) in financing activities	7.1	68.0

Net change in cash and cash equivalents	118.4	130.8
Cash and cash equivalents at the end of the period	521.5	372.6

OVERVIEW OF THE GROUP'S OPERATING PERFORMANCE AND FINANCIAL POSITION

This press release presents and comments on certain financial indicators that are not identified in the IFRS. These indicators, which are described below, are used to comment on the Group's business performance, in compliance with the requirements of Consob communication of 28 July 2006 (DEM 6064293), as subsequently amended and supplemented (Consob communication 0092543 of 3 December 2015, which incorporates the ESMA Guidelines ESMA/2015/1415).

The alternative performance indicators listed below should be used to supplement the information required by IFRS to help readers of the press release gain a more comprehensive understanding of the Group's economic, financial and operating position, by excluding the result of one-off elements for the Luminex acquisition and integration from the amortization deriving from the Purchase Price Allocation and the financial expenses related to the financing of the transaction, including their tax impact.

It should be noted that the calculation of these adjusted indicators could differ from those used by other companies

Q1 2022 ADJUSTED INDICATORS

(Amounts in million of Euro)	Gross Margin	EBITDA	EBIT	Net Profit
IFRS Financial Statements Measures	234.8	146.6	113.6	82.3
% on Revenues	65.7%	41.0%	31.8%	23.0%
Adjustments
Fair value measurement of the initial Luminex inventory	2.0	2.0	2.0	2.0
"One-off" Costs related to the integration and restructuring of Luminex	-	1.2	1.2	1.2
Depreciation of Luminex intangibles identified in the Purchase Price Allocation	-	-	9.4	9.4
Financial charges relating to debt instruments and to the convertible bond issued to finance the acquisition of Luminex net of hedging effects	-	-	-	5.9
Total adjustments before tax effect	2.0	3.2	12.5	18.4
Fiscal effect on adjustments	-	-	-	(4.3)
Total Adjustments	2.0	3.2	12.5	14.1
Adjusted Measures	236.8	149.8	126.2	96.4

Q1 2023 ADJUSTED INDICATORS

(amounts in million of Euro)	Gross Margin	EBITDA	EBIT	Net Profit
IFRS Financial Statements Measures	191.9	92.7	60.3	41.7
% on Revenues	66.3%	32.0%	20.8%	14.4%
Adjustments
"One-off" costs related to the integration and restructuring of Luminex and to the sale of Flow Cytometry	-	4.8	4.8	4.8
Depreciation of Luminex intangibles identified in the Purchase Price Allocation	-	-	9.8	9.8
Financial charges relating to debt instruments and to the convertible bond issued to finance the acquisition of Luminex net of hedging effects	-	-	-	7.3
Total adjustments before tax effect	-	4.8	14.6	21.8
Fiscal effect on adjustments				(5.0)
Total Adjustments	-	4.8	14.6	16.8
Adjusted Measures	191.9	97.5	74.8	58.5

OPERATING PERFORMANCE IN Q1 2023 AND COMPARISON WITH Q1 2022

(amounts in million of Euro)	3/31/2023	% on Revenues	3/31/2022	% on Revenues
Net Revenues	289.6	100.0%	357.6	100.0%
Cost of Sales	(97.7)	33.7%	(122.8)	34.3%
Gross Profit	191.9	66.3%	234.8	65.7%
Adjusted2 Gross Profit	191.9	66.3%	236.8	66.2%
Sales and marketing expenses	(72.6)	25.1%	(68.5)	19.2%
Research and development expenses	(23.3)	8.0%	(22.4)	6.3%
General and administrative expenses	(28.8)	9.9%	(27.8)	7.8%
Total operating expenses	(124.7)	43.1%	(118.7)	33.2%
Other operating income (expense)	(7.0)	2.4%	(2.5)	0.7%
EBIT	60.3	20.8%	113.6	31.8%
Adjusted2 EBIT	74.8	25.8%	126.2	35.3%
Net financial income (expense)	(6.1)	2.1%	(7.4)	2.1%
Profit before taxes	54.2	18.7%	106.2	29.7%
Income taxes	(12.5)	4.3%	(23.9)	6.7%
Net Profit	41.7	14.4%	82.3	23.0%
Adjusted2 Net Profit	58.5	20.2%	96.4	27.0%
EBITDA3	92.7	32.0%	146.6	41.0%
Adjusted2 EBITDA3	97.5	33.7%	149.8	41.9%

For additional information, please contact:

INVESTOR RELATIONS

Corporate Vice President Communication, ESG & Investor Relations Corporate Investor Relations & ESG Analyst [email protected] [email protected]

Riccardo Fava Eugenia Ragazzo

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Diasorin Earnings Release 2023

4129_10-q_2023-05-09_0321b5ea-3b77-47be-8f15-db9fa4942c22.pdf

Q1'23 REVENUES CONFIRM GUIDANCE FOR FISCAL YEAR 2023