Labomar — Investor Presentation 2021

Oct 20, 2021

INVESTOR DAYS

19th /20th October2021 Hotel Relais Villa Cornér della Regina - Cavasagra (Treviso)

1. VISION & MISSION 2. LABOMAR IN ITS REFERENCE MARKET 3. LABOMAR GROWTH PATH 4. HOW LABOMAR SUPPORTS ITS GROWTH

1. VISION & MISSION 2. LABOMAR IN ITS REFERENCE MARKET 3. LABOMAR GROWTH PATH 4. HOW LABOMAR SUPPORTS ITS GROWTH

VISION

WE IMPROVE WELL-BEING AND THE QUALITY OF PEOPLE LIFE

MISSION

WE WORK TOGETHER WITH PASSION, TO CONCEIVE AND MANUFACTURE PRODUCTS AND SERVICES FOR WELL-BEING, IN RESPECT OF THE ENVIRONMENT

WE INNOVATE WITH COURAGE, PROUD TO BELONG TO A GREAT FAMILY

VISION & MISSION

WELL OUR VALUES

VISION & MISSION

CUSTOMER ORIENTATION

WE STRONGLY BELIEVE IN SUSTAINABILITY

SUSTAINABILITY

OUR GOAL FOR 2022*

* depending on the Certifying Body availability, SOURCE: Management

SUSTAINABILITY - 1ST LABOMAR IMPACT REPORT

LABOMAR

SUSTAINABILITY - 1ST LABOMAR IMPACT REPORT

SHARED BENEFIT GOALS:

commitment transparency environment

ethics quality effectiveness

beauty culture, social territory

welfare community respect

1. VISION & MISSION 2. LABOMAR IN ITS REFERENCE MARKET 3. LABOMAR GROWTH PATH 4. HOW LABOMAR SUPPORTS ITS GROWTH

a buoyant sector, with some clear trends…

• 1. SOURCE: PWC Report "Vitamins & Dietary Supplements Market Overview" July 2020
• 1. According to Federsalus, which tracks also sales on the Parapharmacy and Large Scale Retail Trade channels, the Italian market has reached a size of 3.3 €B in 2018.
• 1. SOURCE: Federsalus Report "Il Mercato degli integratori" July 2021

THE SECTOR HAS REACHED A SIZE OF ALMOST 4 €B(3)

the nutraceutical end-market keeps registering attractive growth rates on the tail-wind of tangible mega-trends

TRENDS

Italy is the largest nutraceutical market in the European union and the

…temporarily affected by the Pandemic

LABOMAR's business model COVID-19 market adversities

Most of our products are promoted by companies using Medical Representatives networks to Prescribers or Pharmacists

Impossibility to visit regularly Prescribers and Pharmacists by Medical Representatives, limited activity in Pharma Retail

Most of our products are promoted in Pharmacies thanks to pharmacist's advice

Pharmacy Retailers were strictly focused on Covid -19 related Products (i.e. face masks)

Cough&Cold and Probiotics segments represent 25% of Labomar Total Turnover

Strong temporary reduction of sell out due to mask use and social distance rules determining:

• reduction in cough&cold pathologies
• reduction in all hygiene associated infections (i.e. diarrhea in children)

Labomar acts as a "Make to Order" Company Customer's fear to "miss out" determined some overstock situation

LABOMAR's business model COVID-19 market adversities

…temporarily affected by the Pandemic

Labomar R&D is focused on long term and high value New Projects

Most of big pharma Customers decided to postpone new market launches from 2021 to 2022

A very huge range of different products realized (orders backlog with confirmed prices)

Difficulties in supply of raw materials and unfavorable prices evolution

LABOMAR's business model COVID-19 market adversities

…temporarily affected by the Pandemic

HOW DID LABOMAR FACE THE PANDEMIC?

with more reactive Customers

• increase R&D Projects in therapeutical areas as:

• Sleep and stress disorders

• Gastroenterology
• Cardiovascular

To support a greater complexity and dimension and to maximize synergies with Importfab, Welcare and Labiotre Top Management enforcement

LABOMAR'S ROLE IN ITS SECTOR: A UNIQUE BUSINESS MODEL

A UNIQUE BUSINESS MODEL

A UNIQUE BUSINESS MODEL

CATEGORIES	LIQUIDS
Probiotics	SYRUP, SUSPENSION, EMULSION, NANOEMULSION, IONIZED WATER, EXTEMPORANEOUS SOL
Cough & Cold
Sleep & Stress disorders	TABLETS
Vitamins	CHEWABLE, SWALLOWABLE, MICROTABLES 3MM, SUBLINGUAL, FILM COVERED, MODIFIED RELEASE, MULTILAYER, GASTRO-RESISTANT
Cardiovascular
Gastroenterology	POWDERS SOLUBLE, ORODISPERSIBLE, GRANULATED, GASTRO-
Antioxidants	RESISTANT
Energy
Minerals	CAPSULES
FSMP	HARD CAPSULES, ANIMAL AND VEGETAL ORIGIN
Immune System
Laxatives	OTHER CREAMS, GELS, OINTMENTS, LOTIONS
Others

ALL PHARMACEUTICAL FORMS AND ALL THERAPEUTICS AREAS 1

RESULTS

CATEGORIES	TURNOVER 2020 %
Probiotics	15,54%
Cough & Cold	10,09%
Sleep & Stress disorders	6,98%
Vitamins	6,21%
Cardiovascular	4,81%
Gastroenterology	4,80%
Antioxidants	4,78%
Energy	4,51%
Minerals	3,86%
FSMP	3,78%
Immune System	3,71%
Laxatives	2,75%
Others	28,18%

RESULTS

PHARMACEUTICAL FORMS	TURNOVER 2020 %
Liquid	32,83%
Powder	21,50%
Tablets	21,29%
Capsules	10,00%
Others	14,38%

Note: Data only referred to Labomar stand alone (2020) SOURCE: Management

% IP Turnover 2020

70%

Turnover from IP Others

1.Only referred to Labomar stand alone 2.'BDM' means 'Business Development Manager'

SALES TEAM

with a unique salesforce for unparalleled client coverage1

1.Only referred to Labomar stand alone 2.'BDM' means 'Business Development Manager'

SALES TEAM

with a unique salesforce for unparalleled client coverage1

1. VISION & MISSION 2. LABOMAR IN ITS REFERENCE MARKET 3. LABOMAR GROWTH PATH 4. HOW LABOMAR SUPPORTS ITS GROWTH

* now LABOMAR NEXT srl

srl

LABOMAR

... and what were our strategic pillars of growth

1. At now, signed a partnership agreement with Sesa Spa. The New.Co. will be established in November, SOURCE: Management * now LABOMAR NEXT srl

LABOMAR IS BECOMING A SYSTEM INTEGRATOR TO OVERSEE THE ENTIRE VALUE CHAIN

THE VALUE CHAIN

THE VALUE CHAIN

LABOMAR

"THE VERTICAL FARM IS A WORLD-CHANGING INNOVATION WHOSE TIME HAS COME. THIS VISIONARY BOOK PROVIDES A BLUEPRINT FOR SECURING THE WORLD'S FOOD SUPPLY AND AT THE SAME TIME SOLVING ONE OF THE GRAVEST ENVIRONMENTAL CRISES FACING US TODAY."

$-STING$

THE VERTICAL FARM

FEEDING THE WORLD IN THE 21st CENTURY

DR. DICKSON DESPOMMIER

FOREWORD BY MAJORA CARTER,

MACARTHUR "GENIUS" FELLOW

an industry hitting many Sustainable Development Goals

FINANCIAL SUSTAINABILITY IS VERTICAL FARMING'S BOTTLENECK

6-YEAR MULTIDISCIPLINARY R&D PROCESS

BIOREACTORS: PLANTS EXPRESSING ACTIVE PRINCIPLES RELEVANT IN

FUNCTIONAL FOOD NUTRACEUTICALS COSMETICS PHARMACEUTICALS

LABOMAR

next generation nutraceutical ingredients

3 ONGOING R&D PROJECTS

medical Cannabis a functional dressing

a strategic integration upstream of the supply chain

THE VALUE CHAIN

Labiotre is an Italian company founded in 2011 with the aim of producing botanical extracts having a full control on the production chain, in order to guarantee the highest qualitative standards

from the deep knowledge of botany, Labiotre research and develop
innovative extraction methods that allows to make the most from the plants, while respecting their physiology

LABOMAR

each Labiotre extract or fraction embodies a set of peculiarities that make it optimal for a specific formulation. This feature allows the customer to choose the most appropriate category for the final preparation among the different categories of products offered

SOURCE: www.labiotre.com

ed	Botanical substrates fermented by	Studied extracts with standardization
	anaerobial microorganisms	in peculiar active molecules

FOCUS ON SOFT-GELS

A totally new plant, built with the highest quality standards, that offers flexibility of the batch sizes, thanks to the different production lines, and liability thanks to the deep expertees of the technicians

other products:

• Granulated dried extracts
• Soft extracts
• Fluid extracts and hydroalcoholic tinctures
• Hydroglyceric extracts
• Glycolic extracts
• Liposoluble extracts
• Glycerine macerateds

a Highway for presence in North America

THE VALUE CHAIN

IMPORTFAB is a well-established contract manufacturer in Canada, since 1990. Reliable reference point in the manufacturing and packaging ofsemi-solid and liquid products. Essentially, a benchmark for modern, efficient production, assured through the use of highly performing equipment.

www.importfab.com

PHARMACEUTICAL FORMULATIONS

• Semi-solids

• Liquids and suspensions

NUTRACEUTICAL DIETARY SUPPLEMENT MANUFACTURING

• Liquid nutraceuticals and dietary supplements
• Liquid homeopathic products
• Organic skin-care products

COSMETIC AND COSMECEUTICAL PRODUCTS

A VERY PRESTIGIOUS CLIENT PORTFOLIO:

• PALADIN LABS INC.
• GALDERMA (NESTLE' GROUP)
• ALUMIERMD COSMETICS
• DORMER LABORATORIES INC.
• PHARMASCIENCE
• PHARMASCIENCE INTERNATIONAL

QUEBEC WAS ONE OF CANADA REGIONS MOST AFFECTED BY THE PANDEMIC:

Stricter anti Covid-19 rules (in retail too), manufacturing shut down for cosmetic products Significant public contribution to maintain job security and support the crisis

Delayed of Raw Materials and primary packaging components (especially API or primary packaging)

Delay of production from 1° Half to 2° Half 2021

Labomar Synergies with Importfab:

OPPORTUNITIES FOR A FURTHER DEVELOPMENT OF THE EUROPEAN MARKET, THROUGH IMPORTFAB PRODUCTIONS, IN THE FIELD OF FUNCTIONAL COSMETICS

OPPORTUNITIES TO REACH NEW MARKETS, SUCH AS NORTH AMERICA, THANKS TO IMPORTFAB PRODUCTIONS AND ITS CERTIFICATION (SANTE' CANADA AND FDA)

A BOOST FOR INTERNATIONALIZATION AND COMPLEMENTARY BUSINESS

THE VALUE CHAIN

AND LESIONS RELATED TO HYGIENE AND PATHOLOGIES"

Marco Grespigna

$\mathbf{0}$

of yearly turnover is invested in R&D and production capacity.

than

LABOMAR

Company founded in

Patented Products for Skin Care and Wound care

$\rightarrow$ Our Company's values:

ITALIAN DNA

INTERNATIONAL SPIRIT

LABOMAR

INNOVATION

SUSTAINABILITY

INTERNAL R&D AND PRODUCTION

Italy as an opportunity to improve our turnover:

• HOSPITAL

• RETAIL (PHARMACIES)
• WHOLESALERS-COOP
• HOSPITAL DISTRIBUTORS

HOMECARE

PHARMACY

and the rest of the world

new countries in 2021: Greece, Albania, Oman, Iran

proprietary technology

FORMAT	MEDICAL DEVICES	DISINFECTANTS	COSMETICS
Creams
Gel
Bandages
Liquid solutions / lotions
Pre-soaked wipes (single or multi packs)
Pre-soaked gloves (single or multi packs)

A CLEAR SYNERGY WITH LABOMAR AS FULL SERVICE CONTRACT MANUFACTURING COMPANY

Welcare Industries is able to support business partners in:

• ·Product development
• •Regulatory assessments
• •Manufacturing
• •Marketing and communication assistance
• .National and international commercial support

UNI CEI EN ISO 13485: 2016 Medical Device Quality Management Systems

UNI EN ISO 9001: 2015 Quality Management Systems

UNI EN ISO 14001: 2015 Environmental Management Systems

UMI CEI EN 150 13495: 2016

This international standard identifies the requirements of the Quality Management System that requlates one or more stages -of the life - cycle of the Medical Devices, including their design, development, production and distribution.

UMI EN 150 7001: 2015

This is the most popular stenderd for Quelity Menegement Systems. Over one million compenies across 180 countries are certified ISO 9001. The ISO (International Organization for Standardization) 9000 family of standards, is the only one used for

LABOMAR

The production of cellulose is an energy-intensive process, the timber used provides natural bio-energy to fuel the manufacturing plant.

Chemical Recovery

The energy requirement for the production of cellulose is covered by bioenergy derived from the wood itself.

A FOCUSED AND EFFECTIVE PORTFOLIO OF BRANDED PRODUCTS

A STRONG AND CLEAR SYNERGY BETWEEN LABOMAR AND WELCARE PORTFOLIO ON BRANDED PRODUCTS

LABOMAR

MOREOVER:

THE VALUE CHAIN

a new channel and a first step for Far East growth: a great opportunity to operate on one of the largest marketplaces in the world (China), bringing top-quality products and a business model focused on digital sales platforms

LABOVAR

WHO

Labomar and Sesa, reference player in Italy in technological innovation and digital services for the business segment, through its subsidiary Var Group SpA, active in the Software and System Integration sector

WHAT

partnership agreement for the development of Chinese market digital e-commerce platforms for Nutraceutical products. The agreement involves the establishment of a New.Co. (51% Labomar and 49%Var Group)

First revenues expected from 2H 2022

LABOVAR

NOT ONLY CROSS SELLING,

BUT ALSO GEOGRAPHICAL EXPANSION

GLOBAL REACH

1. VISION & MISSION 2. LABOMAR IN ITS REFERENCE MARKET 3. LABOMAR GROWTH PATH 4. HOW LABOMAR SUPPORTS ITS GROWTH

EFFICIENT NEW PRODUCTION CAPACITY

INNOVATOR DNA

ATTENTION TO HUMAN CAPITAL AND ORGANIZATION

GROWTH DRIVERS

strong growth sustained by:

ATTENTION TO HUMAN CAPITAL AND ORGANIZATION

HUMAN CAPITAL

Note: In 2020 Labomar consolidates only ImportFab. Welcare will be consolidated from July 1, 2021, SOURCE: Management Note: nr. of employees update at December, 2020. Number of external contractors not included, SOURCE: Management

HUMAN CAPITAL

HUMAN CAPITAL

Well balanced proportion between men and women (around 50% of distribution)

Young population: average age - 40 years

• Alignment of corporate values and personal values: development of Labomar Leadership Model for people and organization development
• Attract and recruit the best competences necessary for the development of the Company
• Identify and develop key people
• Engaging and retaining people: Communication, Wellness and Total Reward
• Performance improvement: continue to work with all the management to strengthen organization, processes, tools and behaviors
• Integration and standardization: activation of synergies and Group dynamics

HUMAN CAPITAL

CHALLENGES TO SUPPORT THE GROWTH

INNOVATOR DNA

INNOVATOR DNA

INNOVATOR DNA

LABOMAR R&D department goals are:

INCREASING BIOAVAILABILITY AND SOLUBILITY OF INGREDIENTS POORLY BIOAVAILABLE

IMPROVE PRODUCTS EFFICACY TO ENSURE TO THE CUSTOMER AND TO THE FINAL CONSUMER THE BEST USER EXPERIENCE THEY NEED

LABOMAR

PROPOSE QUALITY AND INNOVATIVE PRODUCTS WITH HIGH SCIENTIFIC KNOW-HOW LEVEL

LABOMAR R&D is specialized in PATENTS AND TECHNOLOGIES with the aims to improve DELIVERY OF POORLY ABSORBABLE SUBSTANCES

8 PLATFORM PATENTS

5 FORMULATION PATENTS

INNOVATOR DNA

We perform several clinical studies and produce scientific publications together with the most important Italian universities and clinical research organizations

Venezia

INNOVATOR DNA

EFFICIENT NEW PRODUCTION CAPACITY

NEW PRODUCTION CAPACITY

L6 is designed for Production and Operational Efficiency, through unification of functions (R&D+Production) and Area Specialization

NEW PRODUCTION CAPACITY

THANK YOU FOR YOUR ATTENTION!