Gvs — Investor Presentation 2022

Sep 6, 2022

GVS SPA

06.09.2022

Agenda

1	YTD Jun 2022 Outlook
2	Company Presentation
	Appendix: Additional Materials

Sales: 166,6 M€ +17% on the normalized (net Disp. Mask) H1 2021 and +14% on H2 2021.

• HC&LS positive trend with +2% on H1 2021 and +11% on H2 2021.
• E&M stable on the H1 2021 and with a +23% on the H2 2021.
• H&S +273% on the H1 2021, due to the RPB addition, and +17% on the H2 2021.

Adjusted EBITDA: 40 M€ and 24% of Adjusted EBITDA Margin

• H1 2022 Adj EBITDA Margin slightly higher than H2 2021, absorbing all the variables from the scenario (inflactions, freights cost, energy cost, labor cost increase,…) but still reflecting the growth of the organizational structure.

NFP: 396 M€ of Net Financial Position.

• 40 M€ of net operative cash generation.
• STT Acquisition in February 2022.
• Haemotronic Acquisition in June 2022.
• Right of Use about 24 M€, including 14M€ from HT consolidation.

Leverage KPI: Debt/Equity 1,2 e NFP/EBITDA 4,2 on proforma basis

• The two key financial KPI reached the higher level due to the M&A activities concentration.
• 15 days of HT and 4 months of STT need of a proforma recalculation.

YTD Jun 2022 Evolution of Sales

TOTAL Normalized SALES YTD Jun 2022: 166,6 M€ +14% vs H2 2021 and +17% vs H1 2021

The Healthcare & Lifesciences division is growing on H1 2021 (+2%) and more on the H2 2021 absorbing the slow down of the Air&Gas business with the Liquid business growth due to the organic trend and the M&A addition.

The Energy & Mobility division increases 23% on H2 2021, orders with positive trend for the H2 2022.

The Health & Safety division reflects the seasonability of the blasting business in the SAR product Family (RPB business) registered in the Q1 2022 and the delay of the dust mask of GVS professional business but with positive signals in terms of POs starting from June.

YTD Jun 2022 Evolution of Main Financials

• H1 2022 impacted by the addition of RPB acquisition, STT acquisition (4 months) and half month of Haemotronic acquisition.
• H2 2021 impacted by the addition of RPB acquisition (4 months) and a residual part of the Covid related extraordinary sales
• H1 2021 impacted by the extraordinary sales generated by the Covid 19 needs.
• Normalization: Sales and EBITDA less the extraordinary impact generated by Covid 19.

Key Financial Highlights — EBITDA and EBIT

Adjusted EBITDA:

• H1 2022 adjusted EBITDA slightely improved vs the H2 2021 due to:
• Positive management of price increase and improvement of variable cost incidence, as a reference H1 2021 had the same raw material incidence of H1 2022 in a like for like analisys. The overall growth of the variable cost incidence is due to the RPB higher material incidence in their business model.
• Flat values of service costs and other operating expenses.
• Labor cost incidence is still decreasing in terms of Direct cost but also increasing in terms of commercial and managerial structure costs to face the business growth for the future.

Adjusted EBIT:

• EBIT has been adjusted for PPA related amortization, increased by the RPB and STT additions, too early for HT acquisition, other than non-recurring income and costs already adjusted in the EBITDA.

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

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 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

• About 9 M€ as Capex, excluding 3,7 M€ of one off capex due to the new plant in China and extraordinary activities for M&A, with a trend in line with normal ongoing activity of the Group and expectations.
• TWC is still higher in value than the year end 2021, also considering it net of the last acquisitions contribution, with a consequent increase of the incidence on LTM sales due to the inventory management strategy to face the supply chain risks and to prevent inflactionary impact.
• R&D expenses are increasing YoY about 10%.

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

Key Financial Highlights — Net Financial Position

NFP increased up to 396M€ due to the concentration of the last three acquisitions;

Leverage on a proforma basis about 4,2x, with a covenant waiver for the H1 2022 measurement period.

The expectation is to recover the covenant level for the year end 2022 (<3,5x).

Cash Conversion on 78% excluding the one off capex related to the new plant in China.

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

Key Financial Highlights — Net Financial Position

NFP has increased due to the last HT acquisition up to 395,9 M€:

.

• STT Acquisition 60,8M€ cash + 7,7 M€ as NPV of future earn-out. HT Acquisition 207M€ Cash + 28,4 as NPV of future earn-out.
• Operative Cash flow generation about 40 M€ in the period with partial absorption from TWC for short term inventories policies (net of the STT and HT impact).
• About 1,4 M€ of Equity cash out due to the end of the buyback process in January.

VISIBILITY ON FUTURE PERFORMANCE AND H2 FOCUS

GVS is on track with the long term vision.

The stand alone forecasts confirm the 2022 expectations with a level near to the one reached in 2021, with a slight growth in sales and a diluition in terms of EBITDA margin.

Three main topics under focus for the next quarter:

Agenda

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

THE ONLY WAY TO SAY FILTRATION

Grazia Valentini Chairman

BOARD OF DIRECTORS

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
• 37 years in GVS
• Started as Sales Manager and currently serves as CEO

• Holds a diploma in Accounting

• 26 years in GVS

• MBA from Profingest Management School, Bologna, Italy

• MSc in Economics from University Federico II, Naples, Italy

• 13 years in GVS

• Started as controller in GVS, currently serves as COO
• MSc in Economics from University of Parma, Italy

Marco Scagliarini VP E&M

• 37 years in GVS

• Held several managerial position in GVS, currently CEO of GVS Real Estate and VP of Energy & Mobility

• Luca Zanini VP HC&LS

• 22 years in GVS
• He started his career as sales manager, previously at Comar Condensatori and then at SMS srl

• Currently serves as VP of Healthcare & Lifesciences

• Pierre Dizier VP H&S

• 8 years in GVS
• MSC in International Business and Finance from Université de la Méditerrannée, Marseille, France
• 17 years experience in Personal Safety

• Currently serves as VP of Health & Safety

• 24 years in GVS

• Covered different managerial roles in GVS, currently serves as VP Research and Development

• MSc Engineering from University of Bologna, Italy, MBA from Profingest, Bologna, Italy

• Paola Musuraca HR Director

• 1 year in GVS
• Master's degree in Management Engineering from University of Bologna, Italy
• More than 10 years experiece in HR development and management
• Currently serves as Corporate HR Director

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

*This graph excludes the sales of disposable masks which occurred as ^a result of the global pandemic, while mask sales in 2021 as a result of Covid-19 stood at € 338M.

Employees breakdown by geography - 2022

GVS has 20 production facilities, in several locations worldwide

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

17 M&A TRANSACTIONS SINCE 2009

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

Strong M&A team with track-record of execution and successful integration

DIVISIONS & PRODUCT LINES

DIVERSIFIED BLUE-CHIP CLIENT BASE

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 & 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 Certification Bodies

AN ESG-COMPLIANT ORGANIZATION

ENVIRONMENTAL	SOCIAL	GOVERNANCE
1	2	3
• UNI EN ISO 14001 certification for Environmental Management System (EMS) • Group environmental policy with annual objectives • Local for local production strategy to reduce transportation-related pollution • Constant effort in reducing the use of pollutiong materials • Sustainable packaging	• Support of a range local charitable and non-profit organizations • Christmas donations • Collaboration with Schools and Universities • Occupational Health and Safety certification	• Ethics Code • Board of Statutory auditors with 3 members guaranteeing protection of shareholders' rights • Supervisory board overseeing and controlling the governance system • Internal approval procedure with segregation of duty

AN ESG-COMPLIANT ORGANIZATION

"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."

Massimo Scagliarini, CEO GVS Group

STRATEGIC GOAL SETTINGS

STRATEGIC PILLAR	COMMITMENT	TARGET
	INNOVATE TO PROMOTE SAFETY AND WELL-BEING	IMPROVE THE PROTECTION LEVEL OF OUR PPE AND PROMOTE AWARENESS AND BEST PRACTISES IN ALL WORK ENVIRONMENTS
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 ENVIRONMENTAL FRIENDLY SOLVENT
	WE BRIDGE RELIABILITY WITH TOMORROW'S TECHNOLOGY	DEVELOP EFFICIENT MEMBRANES AND SEPARATORS THAT SAVE ENERGY CONSUMPTION IN THE CUSTOMER'S APPLICATION
FACILITATE THE ECOLOGICAL TRANSITION	CARBON NEUTRALITY BY 2040	REDUCE BY 30% THE GHG INTENSITY BY 2030, WITH RESPECT TO 2020 LEVEL
	SAFE AND HEALTHY WORKPLACE	ALL PLANT 45001 CERTIFIED
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

H1 2022 (€m)	YTD Jun 2021A	H2 2021A	YTD Jun 2022A	YoY Var. %	Var. % H1 22 vs H2 21
Healthcare & Life Sciences	94,1	86,2	95,5	1,5%	10,8%
Energy & Mobility	39,0	31,7	38,9	-0,3%	22,7%
Health & Safety	8,6	27,6	32,2	274,4%	16,7%
Normalized Revenues	141,7	145,5	166,6	17,57%	14,48%
Covid related mask	48,0	2,9	0,0
Revenues from contracts with customers	189,7	148,4	166,6	-12,18%	12,24%
Other Income	2,9	2,0	1,6
Total Revenues	192,6	150,4	168,2	-12,71%	11,77%
Raw Materials	(46,6)	(49,5)	(52,4)
Personnel	(52,9)	(45,7)	(56,2)
Cost of Services	(18,0)	(18,6)	(21,0)
Other Costs	(3,6)	(1,8)	(2,1)
EBITDA	71,5	34,8	36,5	-49,0%	5,0%
Margin (%)	37,7%	23,4%	21,9%
Non recurring costs (income)	0,3	1,2	3,4
Adjusted EBITDA	71,8	36,0	39,9	-44,5%	10,7%
Margin (%)	37,9%	24,3%	24,0%
D&A and w rite-offs	(10,6)	(13,4)	(15,8)
o/w PPA related amortization	(1,8)	(3,6)	(4,7)
EBIT	61,0	21,4	20,7	-66,0%	-2,9%
Margin (%)	32,1%	14,4%	12,4%
Adjusted EBIT	63,1	26,2	28,8	-54,3%	10,2%
Margin (%)	33,3%	17,6%	17,3%
Net Financial Expenses net of FX gains/(losses)	(1,2)	(1,4)	(1,9)
o/w Non recurring financial expenses		0,6	0,7
FX gains/(losses)	2,6	7,4	23,6
EBT	62,4	27,3	42,5	-32,0%	55,4%
Margin (%)	32,9%	18,4%	25,5%
Taxes	(14,3)	(7,9)	(10,1)
o/w Non recurring inc./cost tax effect	(0,3)	0,5	(1,8)
Net Income	48,1	19,5	32,4	-32,7%	66,3%
Margin (%)	25,4%	13,1%	19,4%
Adjusted Net Income	50,0	24,7	39,4	-21,2%	59,3%
Margin (%)	26,4%	16,7%	23,7%

Key Financial Highlights — Adjustments Overview

E-MARKET SDIR
CERTIFIED

	YTD Giu	YTD Giu
H1 2022 (€m)	2021A	2022A

EBITDA	71,5	36,5
Capital gains from sale processes and leaseback	(2,2)
Start-up costs
Write-off of tax receivables
Personnel reorganization costs
Provisions to restructuring fund		1,4
Valuation of inventory at fair value		1,0
Transaction costs	1,4	1,0
M&A addition
Covid Related Normalization
IPO costs	1,0
Adjusted EBITDA	71,8	39,9
Margin (%)	37,9%	24,0%

EBIT	61,0	20,7
Non recurring costs (income)	0,3	3,4
PPA related amortization	1,8	4,7
Adjusted EBIT	63,1	28,8
Margin (%)	33,3%	17,3%

Group Net Income	48,1	32,4
Non recurring costs (income)	0,3	3,4
PPA related amortization	1,8	4,7
Non-recurring interest expenses (gains)	0,0	0,7
Fiscal impact of non-recurring interest expenses (gains)
Fiscal impact of amortization of intangible assets recorded under the PPA method & non recurring	(0,3)	(1,8)
Alignment of tax rates due to fiscal reforms
Adjusted Group Net Income	50,0	39,5
Margin (%)	26,4%	23,7%

Non recurring costs (income)

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

Key Financial Highlights — Balance Sheet

H1 2022 (€m)	2021	YTD Giu 2022A
Property Plant & Equipment	77,6	106,9
Intangible Assets	227,7	495,7
of Right use	10,4	20,9
Financial Fixed Assets	1,3	4,8
Fixed Net Assets	317,1	628,3
Inventories	72,4	113,6
Trade Receivables	53,0	73,4
Trade Payables	(23,8)	(48,5)
Trade Working Capital	101,5	138,5
Other Current / (Liabilities) Assets	(2,4)	(9,9)
Capital Net Working	99,2	128,6
Other Assets / (Liabilities)	(4,0)	(10,5)
Funds and Provisions	(9,0)	(13,4)
Net Invested Capital	403,2	733,0
Shareholders' Equity	295,3	337,1
Financial Debt	241,5	503,9
Lease Liabilities	11,5	24,0
equivalents1 (Cash & cash )	(145,2)	(131,9)
Net Financial Indebtedness	107,8	395,9
Net Financial Indebtedness / Adjusted LTM EBITDA	1x	5,21x
Financial / Adjusted Net Indebtedness LTM EBITDA on Proforma Base		4,15x
Total Sources	403,2	733,0

H1 2022 (€m)	2021	YTD Jun 2022A
Earning Before Tax	89,8	42,5
D&A	23,5	15,8
Others	(3,7)	(18,2)
Operative Cash Flow	109,6	40,0
Δ Trade Working Capital	(20,6)	(7,8)
Δ Other Current Liabilities	(33,6)	(4,1)
Operating Cash Flow	55,4	28,1
Ordinary Capex	(23,2)	(9,0)
Extraordinary Capex (new plant in China)	-	(3,7)
Free Cash Flow	32,2	15,5
M&A Invest.	(148,2)	(304,5)
Cash Flow net of extraordinary activities	(116,0)	(289,0)
Dividends	(22,7)	-
IPO	-	-
BuyBack	(3,4)	(1,4)
Others	2,7	2,2
Change in net debt	(139,4)	(288,2)
NFP Before of Period	31,6	(107,8)
NFP End of Period	(107,8)	(396,0)

• 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