Informazione Regolamentata n. 2251-24-2021		Data/Ora Ricezione 10 Settembre 2021 12:17:55
Societa'	:	GVS
Identificativo Informazione Regolamentata	:	151695
Nome utilizzatore	:	GVSN02 - Mario Saccone
Tipologia	:	1.2
Data/Ora Ricezione	:	10 Settembre 2021 12:17:55
Data/Ora Inizio Diffusione presunta	:	10 Settembre 2021 12:17:56
Oggetto	:	Press release - GVS S.p.A._1H 2021 results
Testo del comunicato

GVS S.p.A. - The BoD of GVS S.p.A. approves the first half 2021 results

PRESS RELEASE

GVS APPROVES CONSOLIDATED RESULTS TO 30 JUNE 2021

REVENUES UP 29.7%, EBITDA MARGIN AT 37.9%

GVS Group KPIs for the first six months of 2021 compared to the same period in 2020:

Revenues of 189.7 million euro, up 29.7% compared to 146.3 million euro;
Adjusted EBITDA¹ amounted to 71.9 million euro (+30.4%) compared to 55.1 million euro, with 37.9% margin on revenues. EBITDA amounted to 71.6 million euro (+44.1%) compared to 49.7 million euro, with 37.7% margin on revenues;
Adjusted EBIT² amounted to 63.1 million euro (+31.7%) compared to 47.9 million euro, with 33.3% margin on revenues. EBIT amounted to 61.0 million euro (+50.6%) compared to 40.5 million euro, with 32.2% margin on revenues;
Adjusted Net Profit³ was 50.0 million euro (+52.7%) compared to 32.7 million euro. Net Profit was 48.2 million euro (+78.3%) compared to 27.0 million euro;
Positive Net Financial Position of 30.1 million euro compared to a positive position of 31.6 million euro at 31 December 2020.

Zola Predosa (BO), 10 September 2021 - The Board of Directors of GVS S.p.A., a leading provider of advanced filtration solutions for highly critical applications, met today in Zola Predosa (BO) and approved the consolidated results at 30 June 2021, which have been prepared in accordance with IFRS international accounting standards.

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Massimo Scagliarini, CEO of GVS, commented: "The results achieved in the first half of 2021 are further confirmation of the quality of the work done and the growth opportunities we have seized by preparing early for the expected acceleration in the Healthcare & Life Sciences division. The first six months showed substantial revenue growth compared to the same period last year, driven mainly by this division. The next few months will see us engaged in the integration process with the RPB Group, specialised in the design and production of SAR and PAPR respiratory protection, acquired last August. Growth through acquisitions and the expansion of distribution centres will be central to our development strategy and, as always, our objective will be to anticipate trends in order to be ready to compete successfully on the reference markets".

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² This indicates the period result (EBIT) adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses relating to the IPO, costs of relocating the production site in England and the amortisation of intangible assets recognised at the time of the PPA. 3 Indicates the net period result adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses relating to the IPO, costs of relocating the production site in England and the amortisation of intangible assets recognised at the time of the PPA, net of related tax effects.

1 This indicates the period result (EBITDA) adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as residual expenses relating to the IPO and costs of relocating the production site in England.

ANALYSIS OF THE GROUP'S ECONOMICS

At 30 June 2021, GVS achieved consolidated revenues of 189.7 million euro, up 29.7% compared to the 146.3 million euro recorded in the same period of 2020.

The strong increase in sales is attributable to the growth of the Healthcare & Life Sciences division, not only due to the confirmation of the growth of the "Healthcare Air & Gas" business, but also for the resumption of a sustained growth trend in the "Laboratory" business and the "Healthcare Liquid" business which, in addition, benefit from the effects of the acquisitions completed in 2020.

The Energy & Mobility division shows a growth rate of 26.2% compared to the same period in 2020, mainly for the "Safety & Electronics" and "Sport & Utility" businesses, thus confirming the return to a pre-pandemic level of orders. At the same time, "Personal Safety" and the "Healthcare Air & Gas" business maintained excellent sales figures, despite the expected decline in products affected by healthcare emergencies and the delay in the transition from disposable products to products less linked to emergencies.

In terms of performance and breakdown of revenues from contracts with customers at 30 June 2021:

the Healthcare & Life Sciences division, which accounts for 49.6% of the total, grew by approximately 38.4% compared to the same period of 2020;
the Energy & Mobility division, which accounts for 20.5% of the total, recorded an increase of approximately 26.2% compared to the same period of 2020;
the Health & Safety division, which accounts for 29.9% of the total, rose by approximately 19.4% compared to the same period of 2020.

Adjusted EBITDA1 is 71.9 million euro (+30.4%) compared to 55.1 million euro at 30 June 2020, and shows a margin on revenues of 37.9% compared to 37.7% in the first six months of 2020. This increase, on a like-for-like profitability basis, is the result of higher volumes and a positive sales mix. EBITDA amounted to 71.6 million euro (+44.1%) compared to 49.7 million euro, with 37.7% margin on revenues.

Adjusted EBIT² was 63.1 million euro (+31.7%) compared to 47.9 million euro in the same period of the previous year, with a 33.3% margin on sales compared to 32.8% in the first six months of 2020, despite the increase of 1.6 million euro in depreciation and amortisation compared to the same period of the previous year, mainly due to the acceleration of the investment plans made by the Group in 2020, to cope with the necessary increase in production capacity. EBIT amounted to 61.0 million euro (+50.6%) compared to 40.5 million euro, with 32.2% margin on revenues.

Net financial expense (net of foreign exchange gains and losses) amounted to approximately 1.1 million euro, registering a decrease of approximately 0.8 million euro with respect to the same period of the previous year, primarily due to the reduction in interest on loans following the decrease in residual debt and the closing and signing of new loans at more advantageous economic conditions in the second half of 2020.

The Adjusted Net Result³ was 50.0 million euro, up from 32.7 million euro in the first six months of 2020. Net Profit was 48.2 million euro (+78.3%) compared to 27.0 million euro in the same period of 2020.

The Net Financial Position at 30 June 2021 was a positive 30.1 million euro, compared to 31.6 million euro at 31 December 2020. The net change of 1.5 million euro is mainly due to the combined effect

of cash generated from operations net of capital expenditures and cash used to pay dividends and financial expenses.

***

SIGNIFICANT EVENTS OCCURRING IN THE FIRST HALF OF 2021.

In January 2021, the subsidiary GVS Technology (Suzhou) Co. Ltd. transferred ownership of its production site in Suzhou to the Chinese Public Authority, recording an extraordinary capital gain of approximately 1.91 million euro. At the same time, while on the one hand contributions obtained from the Chinese government for the relocation of the same production site amounting to 0.21 million euro were recorded in the consolidated income statement, on the other, a provision was made for charges for the relocation of the same plant for 0.92 million euro. According to the agreements reached, in fact, the company will continue to operate there, free of charge, until relocation to a new production site is completed. The timing of the investment in the new production site and the transfer of production and warehousing will be agreed between the parties at a later date, in order to avoid any break in the production and marketing of products.

The period ended 30 June 2021 was still very severely impacted by the Covid-19 (commonly known as "Coronavirus") pandemic. Continuing on from last year, the Group has continued to adopt organisational measures and procedures to ensure the continuation of production and management activities, so as to guarantee compliance with the commitments with its customers, in full respect of the health of its employees and collaborators.

SUBSEQUENT EVENTS

On 28 July 2021, the Board of Directors approved the sale of the equity investment in GVS Patrimonio immobiliare Srl, held by GVS Microfiltrazione, to GVS Real Estate Srl. This transaction will be financed by GVS Real Estate Srl, which will pay the sale price and provide GVS Patrimonio Immobiliare with the amount necessary to extinguish its current debt position with GVS S.p.A.

On 31 August 2021, the GVS Group acquired 100% of the share capital of the RPB Group specialising in the design and manufacture of respiratory protection, including compressed air respirators and air-purifying powered respirators. In particular, GVS NA Holding Inc. (100% owned by GVS S.p.A.) has acquired 100% of the share capital of the American companies Goodman Brands LLC and Abretec Group LLC, while GVS S.p.A. has acquired 100% of the share capital of RPB Safety Limited (a New Zealand company). The purchase price was set at a maximum of 194.4 million dollar. The transaction provides for an upfront payment of approximately 150 million dollar for the acquisition of 100% of the share capital, and a possible earn-out of 44.4 million dollar (maximum value), the payment of which, expected in 2022, will be proportionally related to the achievement of the RPB Group's 2021 adjusted EBITDA targets. In order to finance the operation, GVS has signed a 5-year loan agreement for 150 million euro with a pool of lending banks: Mediobanca - Banca di Credito Finanziario S.p.A., which also acts as agent, Unicredit S.p.A. and Crédit Agricole Italia S.p.A.

BUSINESS OUTLOOK

For the remainder of 2021, the GVS Group will continue to work on an organic consolidation of the results obtained to date thanks to a rebalancing of the product portfolio mix that will allow it to

consolidate the extraordinary growth recorded in 2020 and in the first half of 2021, maintaining a high focus on timeliness in responding to the demands of the market and of its clients with an increasing sensitivity to the active management of ESG issues. Following the results of the first half of 2021 and, depending on the amount of revenue from contracts with customers already achieved and the order backlog acquired to date, current expectations for the year-end are in a range of 340 - 350 million euro, including the 4-month contribution from RPB, acquired on 31 August 2021, which will offset part of the delay due to a slower transition of the Health & Safety division compared to initial forecasts. The EBITDA margin achieved in the first half of 2021 is expected to trend towards normalisation in the second half, with the overall result expected to be in the range of 32 to 35%. The above forecasts are linked to orders already in the portfolio and contracts under negotiation for all divisions, in a scenario of progressive normalisation of the effects of the pandemic and positive impact of the vaccination policies of the various countries. As a result, the expected level of revenues is supported by all the Group's divisions: Healthcare & Life Sciences, Health & Safety and Energy & Mobility. Due to the uncertainty connected with the occurrence of any future event, it cannot be excluded that there may be deviations, even significant, between the actual values and the abovementioned values.

DECLARATION PURSUANT TO ART. 154-BIS, PARAGRAPH TWO OF THE CONSOLIDATED LAW ON INTERMEDIATION (TUF) The Manager responsible for preparing the company's financial reports, Emanuele Stanco, declares, pursuant to Article 154-bis, second paragraph of Legislative Decree 58/98, that the accounting information contained in this press release corresponds to the results in the Company's documents, books and accounting records.

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CONFERENCE CALL

Financial results for the first six months of 2021 will be presented on Friday 10 September at 16:30 CET during a conference call held by the Group's Senior Management.

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The conference call can be followed in webcast mode by connecting through the following URL https://87399.choruscall.eu/links/gvs210910.html

As an alternative to the webcast mode, you can participate in the conference call by calling one of the following numbers:

ITALY: +39 02 805 88 11

UK: + 44 121 281 8003

USA: +1 718 7058794

The presentation given by the Senior Management will be available before the beginning of the conference call on the authorised storage mechanism eMarket SDIR, managed by Spafid SpA, as well as on the Company's website www.gvs.com (in the Investor Relations/Financial Presentations section).

The Interim Consolidated Financial Statements at 30 June 2021 will be made available to the public at the Company's registered office and at Borsa Italiana, as well as on the website www.gvs.com "Investor Relations/Financial Statements" in accordance with the law.

This press release is available on the regulated information dissemination system eMarket SDIR, managed by Spafid SpA, as well as on the Company's website www.gvs.com (in the Investor Relations/Press releases section).

GVS Group:

The GVS Group is one of the world's leading manufacturers of filter solutions for applications in the Healthcare & Life Sciences, Energy & Mobility and Health & Safety sectors. In addition to the corporate office in Bologna, GVS currently has 15 plants in Italy, the United Kingdom, Brazil, the United States, China, Mexico, Romania and Puerto Rico and 18 sales offices located across the world. In the year ended 31 December 2020, the GVS Group recorded revenue from contracts with customers of 363 million euro and adjusted EBITDA of 144 million euro.

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Contacts

Investor Relations GVS S.p.A. Mario Saccone CFO [email protected] Francesca Cocco IR Consultant - Lerxi Consulting – [email protected]

Media Relations Image Building [email protected]

+39 02 89011300

Consolidated income statement

	Half-year ended 30 June
(In thousands of euro)	2021	2020
Revenues from contracts with customers	189,721	146,333
Other revenues and income	2.932	રતે રહ્યારે હતું જ
Total revenues	192,653	147,031
Purchases and consumption of raw materials, semi-products and finished products	(46,587)	(35,273)
Personnel costs	(52,897)	(44,045)
Service costs	(18,047)	(16,775)
Other operating costs	(3,563)	(1,280)
EBITDA	71,559	49,658
Net write downs of financial assets	(248)	(122)
Amortisation, depreciation and write downs	(10,306)	(9,040)
Operating profit (EBIT)	61,005	40,495
Financial income	2,620	75
Financial expense	(1,181)	(4,654)
Profit (loss) before tax	62,444	35,916
Income tax expense	(14,286)	(8,909)
Net profit	48,158	27,008
Group's share	48.154	27,002
Minority share	4	5
Basic net profit per share	0.28	0.27
Diluted net profit per share	0.27	0.27

Cert. N. 9190 GVS 1

Via Roma, 50 - 40069 Zola Predosa (Bologna) - Italy Tel. +39 051 6176311 - Fax +39 051 6176200 - e-mail: [email protected] - www.gvs.com Cap. Soc. € 1.750.000 int. vers. - C.F. 03636630372 - P. Iva 00644831208 R.E.A. 0305386/BO - Reg. Imprese 45539/BO - Mecc. BO 012048

GVS S.p.A.

Mod 3065 rev 01

ISO 13485
Cert, N. 9124 GVS 3

Consolidated statement of financial position

(In thousands of euro)	At 30 June 2021	At 31 December 2020
ASSIBITS
Non-current assets
Intangible assets	92,716	90,979
Assets represented by usage rights	9,791	8,438
Property, plant and equipment	73,098	68,925
Pre-paid tax assets	4,501	4,568
Non-current financial assets	1,072	968
Non-current derivative financial instruments	21
Total non-current assets	181,199	173,878
Current assets
Inventories	56,151	46,048
Trade receivables	52,168	52,084
Assets from contracts with customers	2,867	1,753
Current tax assets	2,962	202
Other receivables and current assets	11,347	8,299
Current financial assets	5,162	5,026
Cash on hand	119,475	125,068
Total current assets	250,132	238,480
TOTAL ASSETTS	431,331	412,358
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital	1,750	1,750
Reserves	223,685	162,854
Net profit	48,154	78,063
Group shareholders' equity	273,589	242,667
Minorities' shareholders' equity	33	30
Total equity	273,622	242,697
Non-current liabilities
Non-current financial liabilities	61,903	69,728
Non-current leasing liabilities	6,790	5,471
Deferred tax liabilities	3,926	3,167
Provisions for employee benefits	4,553	4,499
Provisions for risks and charges	2,463	1,000
Non-current derivative financial instruments	26	107
Total non-current liabilities	79,661	83,972
Current liabilities
Current financial liabilities	22,322	19,673
Current leasing liabilities	3,476	3,495
Trade payables	24,202	25,585
Liabilities from contracts with customers	5,547	4,894
Current tax liabilities	5,892	14,485
Other current payables and liabilities	16,609	17,557
Total current liabilities	78,048	85,689
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	431,331	412,358

Net

Cert. N. 9190 GVS 1

Tel. +39 051 6176311 - Fax +39 051 6176200 - e-mail: [email protected] - www.gvs.com Cap. Soc. € 1.750.000 int. vers. - C.F. 03636630372 - P. Iva 00644831208 R.E.A. 0305386/BO - Reg. Imprese 45539/BO - Mecc. BO 012048

GVS S.p.A. Via Roma, 50 - 40069 Zola Predosa (Bologna) - Italy

Mod 3065 rev 01

CollATF 16949 Corporation Corporation 13485 Cert. N. 9124 GVS 3

Consolidated statement of cash flows

	Half-year ended 30 June
(In thousands of euro)	2021	2020
Profit (loss) before tax	62,444	35,916
- Adjustment for:
Amortisation, depreciation and write downs	10,306	9,040
Capital losses / (capital gains) from sale of assets	(1,937)	(28)
Financial charges / (proceeds)	(1,439)	4,579
Other non-monetary variations	2,938	୧୦୧
Cash flow generated / (absorbed) by operations before variations in net working capital	72,312	50,113
Change in inventories	(7,039)	(10,878)
Variation in trade receivables	(1,993)	(13,892)
Variation in trade payables	(2,259)	21,366
Variation in other assets and liabilities	(2,503)	3,059
Use of provisions for risks and charges and for employee benefits	(449)	(440)
Taxes paid	(24,746)	(3,618)
Net cash flow generated / (absorbed) by operations	33,323	45,709
Investment in tangible assets	(9,325)	(13,459)
Investment in intangible assets	(2,210)	(1,336)
Disposal of tangible assets	3,554	108
Investments in financial assets		(1,219)
Disinvestment in financial assets	17
Fee for BU acquisition net of cash and cash equivalents acquired		(10,532)
Net cash flow generated / (absorbed) by investment
	(7,964)	(26,438)
Opening of long-term financial payables	87	503
Repayment of long-term financial payables	(6,264)	(14,366)
Repayment of leasing payables	(1,798)	(2,027)
Financial charges paid	(1,836)	(1,775)
Financial proceeds collected	79	75
Net consideration for IPO		79,794
Dividends paid	(22,403)	(1,681)
Net cash flow generated/(absorbed) by financial assets	(32,134)	60,523
Total variation in cash on hand	(6,775)	79,795

Cash on hand at the start of the period	125,068	58,542
Total variation in cash on hand	(6,775)	79,795
Conversion differences on cash on hand	1,182	(791)
Cash on hand at the end of the period	110 475	127 516

Cert. N. 9190 GVS 1

Net

GVS S.p.A.

CollATF 16949 Corporation Corporation 13485 Cert. N. 9124 GVS 3

Mod 3065 rev 01

Consolidated Net Financial Position

	(In thousands of euro)	At 30 June 2021	At 31 December 2020
(A)	Cash on hand	119.475	125,068
(B)	Cash equivalents
(C)	Other current financial assets	5,162	5,026
(D)	Cash and cash equivalents (A) + (B) + (C)	124,637	130,093
(E) (F)	Current financial liabilities Current portion of non-current payables	4,391 21.407	4,063 19,106
(G)	Current financial debt (E) + (F)	25,798	23,168

(H)	Net current financial debt (D)-(G)	98,839	106,925

(1)	Non-current financial liabilities	68,693	75,199
(1)	Debt obligations	26	107
(K)	Commercial and other non-current liabilities
(L)	Non-current financial debt (I)+(J)+(K)	68,719	75,306

	(M) Total net financial debt (H)-(L)	30,120	31,619

(In thousands of euro)	At 30 June 2021	At 31 December 2020
(M) Total net financial debt	30,120	31,619

Non-current derivative financial instruments - assets	21
Financial payables for leasing (net)	10.194	8.815
Total net financial position	40.335	40.435

Cert. N. 9190 GVS 1

GVS S.p.A.

Mod 3065 rev 01

AI assistant

Gvs Earnings Release 2021

4164_er_2021-09-10_fb596adf-026b-43c7-9ce4-2c9fd044eb4a.pdf

PRESS RELEASE

GVS APPROVES CONSOLIDATED RESULTS TO 30 JUNE 2021