Gvs — Investor Presentation 2021

Nov 10, 2021

GVS SPA

NOV 2021

Agenda

1	YTD Sep 2021 Outlook
2	Company Presentation
	Appendix: Additional Materials

Sales: 258 M€ in line with the same period of 2020

• Q3 2021 weaker quarter of the year vs the higher historical level reached in Q3 2020
• FY2021 Revenues expected at approx. 345 M€ with significant recovery in Q4

EBITDA: 33,3% of Adjusted EBITDA Margin

• YTD 2021 Adjusted EBITDA at € 85,9 million
• 3Q 2021 Adj EBITDA Margin, impacted by a different sales mix, higher inventories with av. cost valorization and by an increase of personnel costs as percentage on sales due to the strengthening of the Group structure
• Adj EBITDA Margin: Q1 at 41,7%; Q2 at 33,4%, Q3 on the lower level for this year at 20,6%, Q4 expected at about 32% to reach ~33% in FY2021

NFP: 127,6 M€ of Net Financial Position.

• 72 M€ of net operative cash generation
• RPB Acquisition in August 2021 for 158 M€ (129,2 cash + 28,9 earn out).
• Right of Use about 11 M€

Leverage KPI: Debt/Equity 0,4 e NFP/EBITDA 1 (Just one month of RPB)

• The two key financial KPI are solid and coherent with expectations.

YTD Sep 2021 EVOLUTION OF SALES

TOTAL SALES YTD Sep 2021: 258 M€ in line with 9M 2020

The Healthcare & Lifesciences and Energy & Mobility Divisions keep a positive trend of growth compared with the previous year.

The Health & Safety Division reflects the reduction due to the transition in a post Covid 19 scenario which affects the Personal Safety:

• Reduction of sales for disposable mask (FFP3) due to the positive trend of the vaccination program;
• Delay in the expected growth for professional mask due to the overstock realized in the market.

Key Financial Highlights — EBITDA and EBIT

ADJUSTED EBITDA1 (€M) KEY COMMENTS

Adjusted EBITDA:

• YTD Sep 2021 adjusted EBITDA reduced vs the YTD Sep 2020, due to:
  • the mix of product sold;
  • the increase of finish products inventories, with av. cost valorization;
  • The increase of structure cost in terms of service and people costs
• Adjustment for a residual cost for the IPO, the expenses related to the RPB acquisition and the GVS China sale of the building facility due to the moving in the new location (Governement Agreement) plus accruals for UK and China relocation.

Adjusted EBIT:

• EBIT has been adjusted for PPA related amortization, other than non-recurring income and costs already adjusted in the EBITDA.
• YTD Sep 2021 adjusted EBIT margin at 28,1% vs 36% YTD Sep 2020.

Note: margins calculated on revenues from contracts with customers excluding other income. Please refer to Appendix for further details on adjustments

1. Adjusted for non recurring costs / income;

2. Adjusted for non recurring costs / income and PPA related amortization.

Key Financial Highlights — Net Income, Fin. Exp. & Taxes

• The tax rate (calculated as percentage of EBT) shows a trend of reduction vs the same period of 2020, but the final effect will be defined only with the FY final tax declarations and final year accruals.
• YTD Sep 2021 Adjusted Group Net Income margin at 23,1% vs 24,7% YTD Sep 2020.

1. Adjusted for non-recurring costs / income and relative fiscal impact, PPA related amortization and related fiscal impact and alignment of tax rates due to fiscal reforms.

Key Financial Highlights — CapEx, TWC and R&D

Note: Capex and R&D % of revenues calculated on revenues from contracts with customers excluding other income 1. Exclude investments in financial assets; 2 Includes R&D expenses included in income statement and capitalized costs

R&D2 (€M) KEY COMMENTS % on LTM Sales

• About 11,5 M€ as Capex, net of extraordinary activities, related to the new production lines and maintenance, with a trend in line with the normal ongoing of the Group and expectations.
• TWC is increasing in value on year end 2020, also due to the last acquisition consolidation (about 12 M€), with a consequent increase of the incidence on LTM sales due to the slow down between Q3 2021 vs Q3 2020.
• R&D expenses are increasing YoY about 7%.

This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.

Key Financial Highlights — Net Financial Position

NET FIN. INDEBTEDNESS (€M) AND CASH CONVERSION1

NFP has increased due to the last RPB acquisition up to 127,6M€:

• RPB Acquisition 129,2M€ cash + 28,9 M€ as future earn out.
• Operative Cash flow generation about 72 M€ in the period with higher absorption from NWC for taxes and short term inventories policies.

Cash Conversion improved in the YTD 2021 to 82% .

1. Cash conversion calculates as (Adjusted EBITDA- Ordinary Capex)/Adjusted EBITDA). Capex exclude M&A investments. .

VISIBILITY ON FY 2021 PERFORMANCE

Strong 4Q quarter recovery expected in terms of turnover and profitability FY2021 Sales at ~ 345 M€

Note: Division and sub-division figures rounded to first decimal point

VISIBILITY ON FY 2021 PERFORMANCE

We expect a full year EBITDA margin of ~ 33%.

Q4 main trends:

• 1. Continuous Healthcare and Lifescience and Energy and Mobility positive trend
• 2. Stronger Personal Safety both for disposable and professional mask.
• 3. Industrial structure costs optimization.

Note: Division and sub-division figures rounded to first decimal point

UPDATE ON GVS BUSINESS

Agenda

1	YTD Sep 2021 Outlook
2	Company Presentation
	Appendix: Additional Materials

BOARD OF DIRECTOR

Grazia Valentini Chairman

Massimo Scagliarini CEO

Marco Scagliarini VP Energy & Mobility

Matteo Viola COO

Mario Saccone CFO

Nadia Buttignol Indipendent Director

Arabella Caporello Indipendent Director

Alessandro Nasi Indipendent Director

Michela Schizzi Indipendent Director

KEY PEOPLE

Massimo Scagliarini CEO 36 years in GVS

• In GVS since 1985, started as Sales Manager and currently serves as CEO
• Holds a diploma in Accounting

Marco Scagliarini VP Energy & Mobility 36 years in GVS

• Held several managerial position in GVS
• Currently CEO of GVS Real Estate

Luca Querzè Research & Development VP 23 years in GVS

• In GVS since 1998 covering different managerial roles
• MSc Engineering from University of Bologna, MBA from Profingest, Bologna

Mario Saccone CFO 25 years in GVS

Luca Zanini

Life Sciences

VP Healthcare &

21 years in GVS

Paola Musuraca

New Entry in GVS

Corporate HR

Director

• MBA from Profingest Management School, Bologna, Italy
• MSc in Economics from University Federico II, Naples

• In GVS since 2000

• Previously a sales manager in Comar Condensatori and in SMS srl were he started his career

• Master'sdegree in Management Engineering – Bologna University

• More than10 years experiece in HR development and management

Matteo Viola COO 12 years in GVS

• In GVS since 2008, started as controller and currently serves as COO
• MSc in Economics from University of Parma

Pierre Dizier VP Health & Safety 7 years in GVS

• MSC in International Business and Finance from Université de la Méditerrannée (Marseille)
• 17 years experience in Personal Safety

GVS provides advanced filtration solution for critical application in Highly-regulated end markets

GVS economic and production improvement over the last 40 years

1979 1984 1989 1994 1999 2004 2009 2012 2015 2018 2019 2020

This document and all its contents are property of GVS. All unauthorised use, reproduction or distribution of this document or the information contained in it, by anyone other than GVS, is severely forbidden.

GVS evolved from a small healthcare components supplier into a global diversified filtration group

15 M&A TRANSACTIONS SINCE 2009

Adding capabilities and strengthening presence across China, the UK and North America

Divisions and Products Line

Diversified blue-chip client base

Over 4,600 customers, long-tenured relationship with top clients

1. Excluding €3.2m other income not attributable to single categories; 2. Most of them are GVS clients.

GVS's divisions differentiate for an integrated and highly synergistic business model

Our success is based on strong focus on innovation and customer satisfaction

QUALITY CERTIFICATION

GVS has obtained several Quality Certification, from several Certifiation Body

"

The ability to do business in an innovative and sustainable way, to facilitate the ecological transition and to enhance the value of people, are one of the pillars of GVS Group's strategy. "

STRATEGIC PILLAR	COMMITMENT	TARGET	3 HEALTH
	INNOVATE TO PROMOTE SAFETY AND WELL-BEING	IMPROVE THE PROTECTION LEVEL OF OUR PPE AND PROMOTE AWARENESS AND BEST PRACTISES IN ALL WORK ENVIRONMENTS	-M/C
INNOVATIVE AND SUSTAINABLE BUSINESS	WE BRING INNOVATION IN HEALTHCARE USING SCIENCE	DEVELOP AND DELIVER HEALTHCARE DEVICE AND COMPONENTS THAT COMBINE THE SAFETY OF SINGLE-USE WITH RESPONSIBLE CONSUMPTION OF NATURAL RESOURCES. DESIGN AND DEVELOP POLYMERIC MEMBRANES OBTAINED BY MORE ENVIRONAMENTAL FRIENDLY SOLVENT.	O ECONOMIC GROWTH
	INNOVATION TO BRING THE ENERGY OF THE MOBILITY INTO THE FUTURE	DEVELOP EFFICIENT MEMBRANES AND SEPARATORS THAT SAVE ENERGY CONSUMPTION IN THE CUSTOMER'S APPLICATION	INDUSTRY, INNOVATION AND INFRASTRUCTURE,
FACILITATE THE ECOLOGICAL TRANSITION	CARBON NEUTRALITY BY 2040	REDUCE BY 30% THE GHG INTENSITY BY 2030, WITH RESPECT TO 2020 LEVEL	12 CONSUMPTION AND PRODUCTI
	SAFE AND HEALTHY WORKPLACE	ALL PLANT 45001 CERTIFIED	13 CLIMATE
ENHANCE THE VALUE OF PEOPLE	INCLUSIVE WORKPLACE	NO DISCRIMINATION FOR DIVERSITY IN HIRING, REMUNERATION AND CAREER PATHS

Agenda

1	YTD Sep 2021 Outlook
2	Company Overview
	Appendix: Additional Materials

Key Financial Highlights — Income Statement

YTD 2021 (€m)	YTD Sep 2020A	YTD Sep 2021A	Var. %
Healthcare & Life Sciences	115,4	136,2	18,0%
Growth %
Energy & Mobility	47,3	55.0	16.3%
Growth %
Health & Safety	95,5	66.8	-30,1%
Growth %
Revenues from contracts with customers	258,2	258,0	-0,1%
Other Income	1,2	3,6
Total Revenues	259,4	261,6	0,9%
Raw Materials	(61,4)	(68,2)
Personnel	(71,5)	(76,3)
Cost of Services	(25,8)	(27,7)
Other Costs	(2,2)	(4,3)
EBITDA	98,5	85,0	-13,7%
Margin (%)	38%	33%
Non recurring costs (income)	5,6	0,9
Adjusted EBITDA	104,1	85,9	-17,5%
Margin (%)	40,3%	33,3%
D&A and write-offs	(14,1)	(16,1)
o/w PPA related amortization	(2,9)	(2,7)
EBIT	84,3	68,9	-18,3%
Margin (%)	33%	27%
Adjusted EBIT	92,9	72,6	-21,9%
Margin (%)	36,0%	28,1%
Net Financial Expenses net of FX gains/(losses)	(2,9)	(1,4)
FX gains/(losses)	(6,3)	6,0
EBT	75,1	73,4	-2,3%
Margin (%)	29,1%	28,5%
laxes	(17,9)	(17,1)
o/w Non recurring inc./cost tax effect	(1,8)	(0,5)
Net Income	57,3	56,3	-1,6%
Margin (%)	22,2%	21,8%
Adjusted Net Income	64,0	59,5	-7,0%
Margin (%)	24,8%	23,1%

Note: margins calculated on revenues from contracts with customers excluding other income

Key Financial Highlights — Adjustments Overview

Non recurring costs
(income)

EBIT	84,3	68.9
Non recurring costs (income)	5,7	0.9
PPA related amortization	2,9	2,7
Adjusted EBIT	92,9	72,6
Margin (%)	36.0%	28.1%

Group Net Income	57,3	56,3
Non recurring costs (income)	5.7	0.9
PPA related amortization	2.9	2.7
Non-recurring interest expenses (gains)
Fiscal impact of non-recurring interest expenses (gains)
Fiscal impact of amortization of intangible assets recorded under the PPA method & non recurring Alignment of tax rates due to fiscal reforms	(1,8)	(0,5)
Adjusted Group Net Income	64,0	59.5
Margin (%)	24.8%	23,1%

Note: margins calculated on revenues from contracts with customers excluding other income.

No. of Cattle. 1 ELEGILE GEOLE I FE
YTD 2021 (€m)	2020	YTD Sep 2020A	YTD Sep 2021A
Property Plant & Equipment	82,5	66,6	77,8
Intangible Assets	77,4	94,5	236,8
Right of use	8,4	9,4	9,8
Financial Fixed Assets	0,9	0,9	0,9
Net Fixed Assets	169,2	171,5	325,3
Inventories	46,0	46,0	74,2
Trade Receivables	52,1	66,1	48,3
Trade Payables	(25,6)	(31,9)	(23,5)
Trade Working Capital	72,5	80,2	99,0
Other Current Assets / (Liabilities)	(26,7)	(22,8)	(6,3)
Net Working Capital	45,8	57,3	92,7
Other Assets / (Liabilities)	1,4	0,6	0,7
Funds and Provisions	(5,5)	(4,3)	(7,0)
Net Invested Capital	211,0	225,2	411,6
Shareholders' Equity	242,7	224,0	284,0
Financial Debt	89,5	108,3	253,2
Lease Liabilities	8,8	9,1	10,9
(Cash & cash equivalents')	(129,9)	(116,2)	(136,5)
Net Financial Indebtedness	(31,6)	1,2	127,6
Net Financial Indebtedness / Adjusted LTM EBITDA	-0,2x	Ox	1x
Total Sources	211.1	225.2	411.6

Key Financial Highlights — Balance Sheet

¹ Includes also the item Current Financial Assets.

YTD 2021 (€m)	YTD Sep 2021A
Adjusted EBIIDA	85.9
Taxes	(17,1)
A Net Working Capital	(35,3)
Net Capex (incl. Financial assets)	(15,5)
Operating Cash Flow	18,0
Net financial results	(1,4)
Extraordinary items	5.0
M&A Cash Out & Earn Out	(158,1)
A Funds and other minors	0.1
△ Equity	(22,8)
Change in net debt	(159,2
BoP	31.6
EOP	(127.6)

• Financial Overview slides present consolidated and division financial information of GVS S.p.A. and its reporting units
• The financial information has been prepared in accordance to IFRS
• Due to rounding, numbers expressed in millions throughout this section may differ from those expressed precisely to the totals
• EBITDA is defined as the sum of net income, taxes, net financial expenses, depreciation and amortization and net impairment losses on financial assets

DISCLAIMER

Pursuant to art. 154-bis, paragraph 2, of the Italian Unified Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at GVS S.p.A., Emanuele Stanco, declares that the accounting information contained herein correspond to document results, books and accounting records.

This presentation contains certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on GVS S.p.A.'s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of GVS S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price, and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. GVS S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by GVS S.p.A. or any of its subsidiaries, in Italy pursuant to Section 1, let t) letter (t) of Legislative Decree no. 58 of February 24, 1998, or in any other country or state.

The information contained in this presentation does not purport to be comprehensive and has not been independently verified by any independent third party. The reader should consult any further disclosures GVS may make in documents it files with the Italian Securities and Exchange Commission and with the Italian Stock Exchange