Piovan — Earnings Release 2023

Sep 12, 2023

Press Release

THE BOD OF PIOVAN S.P.A. APPROVES THE CONSOLIDATED HALF-YEAR FINANCIAL REPORT AS OF JUNE 30, 2023

RECORD PERFORMANCE FOR PIOVAN GROUP IN THE FIRST HALF OF 2023 WITH TOTAL REVENUE AND OTHER INCOME REACHING € 290.1 MILLION, UP 21.9% ON THE PREVIOUS YEAR (+15.0% ON AN ORGANIC BASIS) AND AN ADJUSTED EBITDA EQUAL TO € 37.7 MILLION (13.0% OF REVENUE AND OTHER INCOME), INCREASING BY 37.9% ON THE SAME PERIOD OF 2022 (+32.6% ON AN ORGANIC BASIS).

• Consolidated revenue and other income of € 290.1 million, growing by 21.9% on June 30, 2022 (+15.0% on a like-for-like consolidation basis);
• Consolidated Adjusted EBITDA of € 37.7 million (13.0% margin), increasing by 37.9% on June 30, 2022 (+32.6% on a like-for-like consolidation basis and excluding the impact of certain nonrecurring items);
• Consolidated Operating Profit (EBIT) of € 32.5 million (11.2% margin) excluding the effects of IPEG Purchase Price Allocation ("PPA"), increasing by € 10.8 million (+49.7%) on June 30, 2022;
• Consolidated Net Profit of € 21.8 million (7.5% margin), increasing by € 6.9 million (+45.7%) on June 30, 2022;
• Consolidated Net Financial Position is negative for € 102.6 million. Excluding the effects of the application of IFRS 16, the consolidated net financial position as of June 30, 2023 would amount to negative € 84.7 million.

Santa Maria di Sala (Venice), September 12, 2023 – The Board of Directors of Piovan S.p.A. ("Piovan" or the "Company") today reviewed and approved the Consolidated Half-Year Financial Report as of June 30, 2023.

"The growth in revenues and - above all - the marked improvement in profitability achieved in the first half of 2023 can mainly be attributed to the good balance of our business portfolio, both in terms of end-markets and geographies, to the implementation of our strategy always focused on the needs of our customers, and to the first positive results deriving from the integration of the Group in North America" declares Nicola Piovan, Executive Chairman of Piovan S.p.A.

"The Group also confirms its ability to seize the opportunities arising from the ecological transition, both by contributing to the circular economy in the packaging sector and the development of technological solutions that enable the reduction of fossil fuels in electric mobility. Solutions that require an increasingly innovationoriented approach, which has always been part of our DNA" adds Filippo Zuppichin, Chief Executive Officer of Piovan S.p.A.

	Economic performance indicators				Changes
(amounts in €'000)	First half-year 2023	% on total revenues and other income	First half-year 2022 (1)	% on total revenues and other income	2023 vs 2022	%
Revenue	285,437	98.4%	231,995	97.5%	53,442	23.0%
Other revenue and income	4,695	1.6%	6,058	2.5%	(1,363)	(22.5%)
TOTAL REVENUE AND OTHER INCOME	290,132	100.0%	238,052	100.0%	52,080	21.9%
Adjusted EBITDA	37,677	13.0%	27,323	11.5%	10,354	37.9%
EBITDA	37,458	12.9%	26,710	11.2%	10,748	40.2%
OPERATING PROFIT	30,572	10.5%	18,582	7.8%	11,990	64.5%
PROFIT BEFORE TAXES	31,544	10.9%	21,481	9.0%	10,063	46.8%
Income taxes	9,703	3.3%	6,494	2.7%	3,209	49.4%
NET PROFIT	21,840	7.5%	14,987	6.3%	6,853	45.7%
Attributable to:
Owners of the parent	22,610	7.8%	14,848	6.2%
Non-controlling interests	(769)	(0.3%)	139	0.1%
Basic earnings per share	0.44		0.30
Diluted earnings per share	0.44		0.29

The consolidated key financial highlights of the 2023 first half follow:

(1) For the purposes of comparison, the statement of profit and loss figures for H1 2022 have been restated compared to the Half-Year Financial Report at June 30, 2022, following the definitive purchase price allocation for the IPEG group. Income taxes and the Net profit were restated.

Revenue analysis

Revenue

In the first half of 2023, Piovan Group revenue totaled € 285.4 million, with a strong growth on € 232.0 million in the first half of 2022, increasing by +23%.

Recognizing the effect of the acquisition of IPEG group retroactively to January 1, 2022, Piovan Group revenue in the first half of 2022 would have been equal to € 245.6 million, increasing by +16.2% in 2023.

Revenue calculated on a like-for-like basis (i.e. average exchange rate in the first half of 2022) would have decreased by € 1.1 million at € 284.3 million and showing a growth of 22.5% compared to the first half of 2022. The exchange effect on revenue was mainly due to the trends of the US dollar against the Euro and, to a lesser extent, to trends in the Renminbi.

Revenue by Business Segment

€/000	H1 2023	%	H1 2022 (*)	%	H1 2023 vs H1 2022	%
Technical Polymers	223,531	78.3%	175,533	75.7%	47,998	27.3%
Food & Industrial Applications	18,599	6.5%	23,230	10.0%	(4,631)	(19.9%)
Services	43,307	15.2%	33,232	14.3%	10,075	30.3%
Revenue	285,437	100.0%	231,995	100.0%	53,442	23.0%

(*) H1 2022 includes IPEG group for just 5 months. Furthermore, it should be noted that, in order to better reflect the current configuration of products sold and services provided by Piovan Group, also following the acquisition of IPEG group, the nomenclatures of the reference markets have been redefined compared to previous financial communications.

For what concerns the dynamic of revenue by Business Segment in the first half of 2023, it should be noted that:

• Technical Polymers Systems revenue increased by 27.3%, driven by good performances in all the geographical areas. In particular, the increase is attributable to (i) the increased use of recycled materials in rigid packaging, a sector in which the Group is a leader, (ii) the good performance of the Automotive sector, whereby the transition to electric models requires a significant transformation of metal components into technical polymers; and to (iii) investments in new pipelines, and more generally in high technical content components;
• Food & Industrial Applications Systems revenue decreased compared to the first half of 2022 due to the timing of development of a number of projects, mainly in the North American market, that are to be completed in the second half of 2023, and to the collection of orders for powder processing systems in the Technical Polymers market, which took some production capacity away from food powder processing systems in the Food & Industrial Applications market;
• the Services market reported revenue growth of 30.3% on the same period of the previous year, confirming the development expectations of the Group, which is also focusing on growth in this market.

€/000	H1 2023	%	H1 2022 (*)	%	H1 2023 vs H1 2022	%
EMEA	94,127	33.0%	88,021	37.9%	6,106	6.9%
ASIA	32,637	11.4%	19,823	8.5%	12,814	64.6%
NORTH AMERICA	148,814	52.1%	116,871	50.4%	31,943	27.3%
SOUTH AMERICA	9,859	3.5%	7,280	3.1%	2,579	35.4%
Revenue	285,437	100.0%	231,995	100.0%	53,442	23.0%

Revenue by region

(*) H1 2022 includes IPEG group for just 5 months.

Revenue in North America mainly grew as a result of the increased market shares, the good performances of the subsidiary Pelletron US and of the food area, and in part also driven by the positive impact of the EUR/USD exchange rate.

Growth in Asia, up by 64.6%, shows signs of recovery in the Asian market, also thanks to the winning of some major orders at the end of 2022 and early 2023, which had seen a slowdown in the first part of 2022 following the lockdowns in the first part of the year related to the re-emergence of COVID outbreaks.

Performance in Europe, while positive, reflects the fact that major projects underway in the food area had a final destination of North America and are developed in Europe. Finally, South America continued to perform well, with growth of 35.4%.

Other revenues and income

Other revenues and income decreased by 22.5% on the first half of 2022. This aggregate included a number of operating grants in 2022. Recognizing the effect of the acquisition of IPEG group retroactively to January 1, 2022, Other revenue and income for Piovan Group in 2022 would have been equal to € 6.8 million (-30.6%).

Total revenues and other income

In the first half of 2023, therefore, Total revenues and other income of Piovan Group amounted to € 290.1 million, growing strongly compared to € 238.1 million in the first half of 2022 (+21.9%). Recognizing the effect of the acquisition of IPEG group retroactively to January 1, 2022, the amount of revenues and other income of Piovan Group in 2022 would have been equal to € 252.3 million, increasing by 15.0% in 2023.

Analysis of Group economic results

EBITDA

In the first half of 2023, EBITDA totaled € 37.5 million, an increase of 40.2% compared to € 26.7 million in the first half of 2022 (12.9% margin on total revenues and other income vs. 11.2% in the first half of 2022).

Recognizing the effect of the acquisition of IPEG group retroactively to January 1, 2022, EBITDA in the first half of 2022 would have been equal to € 27.8 million, increasing by 34.7% in 2023.

The growth in EBITDA reflects certain non-recurring costs incurred for activities related to the integration of IPEG group and certain additional costs related to a contract in the food market for a subsidiary.

Adjusted EBITDA

In the first half of 2023, Adjusted EBITDA totaled € 37.7 million (excluding certain non-recurring components or non-core activities), for a margin on total revenues and other income of 13.0%, increasing by 37.9% compared to Adj. EBITDA in the first half of 2022.

Recognizing the effect of the acquisition of IPEG group retroactively to January 1, 2022, Piovan Group Adj. EBITDA in the first half of 2022 would have been equal to € 28.4 million, increasing +32.6% in 2023.

EBIT

In the first half of 2023, EBIT totaled € 30.6 million, up from € 18.6 million in the first half of 2022.

EBIT, therefore, reflects the effects of the PPA of IPEG, which alone included the recognition of amortization of intangible assets of € 2.0 million in the first half of 2023 (€ 3.1 million in the first half of 2022).

The EBIT margin on total revenues and other income is equal to 10.5%, improving with respect to the previous year (7.8%). Excluding the effects of the PPA as described above, EBIT would have been equal to € 32.5

million, for a margin on total revenues and other income of 11.2% (€ 21.7 million in the first half of 2022, for a margin of 9.1% on total revenues and other income).

As described above, the growth in EBIT reflects certain non-recurring costs incurred in the period for activities related to the integration of IPEG group and certain additional costs related to an order of a subsidiary.

Net Profit

The Net Profit in the first half of 2023 was equal to € 21.8 million, increasing on € 15.0 million for the same period of the previous year. The margin on total revenue and other income was equal to 7.5% (6.3% in the first half of 2022).

Net profit in the first half of 2023 benefited from the gain on the transfer of control of Toba PNC. As of the date on which the sale was finalized, the deconsolidated company had negative equity of € 2.6 million (of which € 1.3 million related to minority interests).

Excluding the amortization of the PPA of IPEG, equal to € 2.0 million (€ 3.1 million in the first half of 2022), its related fiscal effect equal to € 0.4 million (€ 0.6 million in the first half of 2022) and the gain on the sale of Toba PNC, net profit would have been equal to € 22.0 million (€ 17.5 million in the first half of 2022), for a margin on revenues and other income of 7.6% (7.3% in the first half of 2022). It is also reminded that the net profit in the first half of 2022 benefited from a positive effect of € 3.3 million due to the favorable trend of the dollar against the euro.

Earnings per share

Earnings per share was equal to € 0.44 as of June 30, 2023, compared to € 0.30 as of June 30, 2022.

Group Balance Sheet items overview

Consolidated Net Financial Position

The consolidated net financial position at June 30, 2023 was negative and equal to € 102.6 million, improving if compared to June 30, 2022 – when it was negative and equal to € 117.6 million – and decreasing if compared to a negative one equal to € 88.1 million at December 31, 2022, absorbing net cash in the amount of € 14.5 million, which was mainly attributable to the dividends resolved and paid by the Parent Company in May 2023 (about € 10.2 million) and the investments made in the semester (about € 4.5 million).

€/000	30.06.2023	31.12.2022	30.06.2022
A. Cash	52,678	74,365	104,480
B. Cash equivalents	14,500	20,000	-
C. Other current financial assets	6,599	6,815	1,525
D. Liquidity (A+B+C)	73,777	101,180	106,005
E. Current financial debt (including debt instruments, but excluding current portion of non-current financial debt)	(23,747)	(10,504)	(31,044)
F. Current portion of non-current financial debt	(38,258)	(32,692)	(26,578)
G. Current financial indebtedness (E+F)	(62,005)	(43,196)	(57,623)
H. Net current financial indebtedness (G-D)	11,772	57,984	48,382
I. Non-current financial debt (excluding current portion and debt instruments)	(112,022)	(142,770)	(142,465)
J. Debt instruments	-	-	-
K. Non-current trade and other payables	(2,328)	(3,295)	(23,541)
L. Non-current financial indebtedness (I+J+K)	(114,350)	(146,065)	(166,006)
M. Total net financial position (H+L)	(102,578)	(88,081)	(117,624)

Excluding the effects of the application of IFRS 16, the Group's net financial position at June 30, 2023 would amount to negative € 84.7 million, compared to a negative value of € 70.2 million at December 31, 2022, absorbing net cash in the amount of 14.5 million.

The item "Current financial debt (including debt instruments but excluding current portion of non-current financial debt)" includes the fair value measurement of the earn-out (previously included within "Non Current financial debt") in the amount of USD 21.8 million (€ 20.1 million at June 30, 2023 and € 20.4 million at December 31, 2022), equal to its maximum contractual value, which is expected to be paid in 2024 to the selling shareholders of IPEG Inc., in accordance with contractual obligations.

Investments for the first half of 2023 totaled € 4.5 million (€ 1,6 million in the first half of 2022), of which non-recurring investments equal to € 2.6 million. Among the investments made, it is recalled the project to expand the production facility of the subsidiary FEA, which began in 2022, for which the first phase was completed in July 2023 and the workforce relocated accordingly, and for which all work is scheduled to be completed by the third quarter of 2023.

The net financial position includes medium/long-term loans, mainly relating to the parent company Piovan S.p.A. (the "Parent Company") and entirely subscribed in Euro, for € 135.2 million, of which € 38.2 million repayable within 12 months and the remaining € 97.0 million medium/long-term.

As reported previously, it is reminded that, in January 2022, in order to complete the IPEG acquisition, a 6 year € 100 million fixed-rate loan bearing annual interest of 1.335% was obtained.

Significant events occurred during the first half of 2023

Doteco Inc.

On January 1, 2023, Doteco S.p.A. sold its equity interest in Doteco Inc. to IPEG Inc.. This transaction, which had no impact on the consolidated financial statements, falls within the scope of a broader process of reorganization and streamlining that Piovan Group initiated following the acquisition of the American group IPEG.

Sale of Toba Pnc

On January 31, 2023, the sale was completed to non-controlling interests of a 41% stake held by Piovan S.p.A. in Toba Pnc. As a result, Piovan S.p.A. now holds a 10% interest in Toba Pnc. The Group will be continuing to operate in Korea by way of both the non-controlling interest in Toba Pnc and a direct presence in the country, development of which is ongoing.

Establishing of Piovan Indonesia

On January 6, 2023, the Group established a new commercial branch in Indonesia – PT Piovan Technology Indonesia – to be able to serve locally and more directly clients in that country.

Resignation of a director

On January 26, 2023, the director Marco Stevanato resigned for personal reasons. Mr. Stevanato was a nonindependent, non-executive director and held no additional positions on the Company's committees. There are no indemnities or other benefits payable as a result of his conclusion of office. On March 21, 2023, Mr. Maurizio Bazzo was co-opted to the Board and was then confirmed by the Shareholders' AGM of April 27, 2023, establishing that he shall remain in office until the conclusion of mandate of the other currently serving directors, and therefore until the Shareholders' AGM called to approve the financial statements at December 31, 2023.

Acquisition of some assets from ProTec Polymer Processing GmbH

On March 14, 2023, Piovan Group, by way of the subsidiary FDM GmbH, purchased from ProTec Polymer Processing GmbH a number of assets attributable to the Materials Handling, Dosing and Recycling markets with the goal of developing the Service/post-sale market and expanding market share with the OEM leader on the German market.

Dividends distribution

On April 27, 2023, the Shareholders' AGM approved the distribution of a dividend for € 10,206,492.20 (€ 0.20 per share with profit rights, excluding the treasury shares of the Company). The dividend was paid out from May 17, 2023, with coupon date of May 15, 2023 and record date of May 16, 2023.

Authorization to acquire treasury shares

On April 27, 2023, the Shareholders' AGM conferred to the Board of Directors of the Company the authorization to purchase and dispose of treasury shares, subject to revocation of the previous authorization granted by the Shareholders' AGM on April 28, 2022, as detailed in the Directors' report published on the Company's website at www.piovan.com, in the Investors/Investor Relations/Shareholders' Meeting section.

New Long Term Incentive Plan

On April 27, 2023, the Shareholders' AGM approved the new stock grant plan for ordinary company shares, called the "2023-2025 Long Term Incentive Plan" (the "Plan"). The Plan is organized into three cycles (the first for the 2023-2025 vesting period, the second for the 2024-2026 vesting period, and the third for the

2025-2027 vesting period) and, for each cycle, calls for the assignment of ordinary shares of Piovan S.p.A., under the terms and conditions specified in the Information Document published on the Company's website (www.piovan.com), to Executive Directors (excluding the Executive Chairperson) and Managers with Strategic Responsibilities, and additional individuals to be selected by the Chairperson of the Board of Directors from among the employees and/or contractors of the Company or subsidiary companies due to the strategic importance of the roles. It is underlined that the Plan's goals include one objective related to ESG topics.

Significant events occurred after June 30, 2023

No further significant events occurred after June 30, 2023.

Outlook

The Group confirms its desire to continue along the strategic path undertaken, focusing on increasing its contribution to the circular economy by developing products and solutions for the recycling value chain, increasing acquisitions, and working to achieve greater market share in the Food & Industrial Applications segment.

With regard to future acquisitions- and given the completion of the IPEG, Inc. acquisition on January 31, 2022 - it is reasonable to assume that the following months will continue to be dedicated to the strategic integration, defined in 2022, of this industrial group in order to take full advantage of the company's strategic potential, given also its importance within the Group.

Although the Group's focus is on reducing debt as a result of the above-mentioned operation, Piovan remains interested in companies with products/technologies that can expand the value chain served by the Group, and will continue to assess potential opportunities for acquisitions and external growth.

With regard to developments in European legislation concerning the production and use of plastic, there is a possibility of changes in the marketplace. In particular, legislation could promote the use of recycled plastic or biodegradable polymers at the expense of virgin, petroleum-based polymers.

For Piovan Group, this European legislation represents an opportunity to sell technologies developed in recent years for the automation, processing and screening of recycled and biodegradable plastics, sectors in which the Group has developed a strong leadership also thanks to several patents related to recycling and where it has a technological advantage over its competitors. The Company currently estimates that about 32.4% of the automations sold in the packaging, fiber and recycling segments are being used in order to make use of recycled material.

Since 2006, the Group has built hundreds of plastic recycling plants and thousands of systems that make it possible to create new products out of recycled plastic.

Piovan is already engaged at various levels in the process of change and is committed to providing solutions to the market for a circular economy, particularly in researching and developing advanced innovative

technologies - allowing customers to use recycled polymers and obtaining a quality product with low environmental impact, cutting CO2 emissions and the consumption of scarce resources.

Considering organic growth, on the strength of record performance in 2022 and a first half of 2023 which appears to confirm the performance in 2022, the Group looks to organic growth for the future with great optimism despite the uncertainties related to the geopolitical environment. Piovan Group has a presence in many geographical areas and in a diverse range of industries, which will certainly mitigate the overall risk, which mainly stems from the significant raising of interest rates by central banks and the persistent geopolitical uncertainties.

The order backlog at June 30, 2023 has not undergone significant changes compared to the data of the previous year, thanks to an order intake which, although slightly down on the previous year, was again at a satisfactory level and in line with the Group plan. In addition, supply chains are gradually normalizing.

Against these positive factors however, risks related to the ongoing Russia-Ukraine war persist, with its consequent impact on the economy, while the particularly high levels of inflation have forced central banks to considerably raise interest rates. Continuing this policy for too long may impact consumption and investment decisions.

***

Other Board of Directors' motions

Today, the Board of Directors also approved, among other matters, a number of new Group policies with reference to Environmental, Social and Governance ("ESG") issues, called "Tax Management Policy", "Diversity, Equity and Inclusion Policy", "Human Rights Policy", "Environmental Policy", "Health & Safety Policy" and "Working Hours Policy", which will be made available to the public on the corporate website www.piovan.com, Corporate Governance section.

***

CONFERENCE CALL

The results as of June 30, 2023 shall be presented to the financial community through a conference call to be held on September 13, 2023 at 10:30 AM CET. You may participate in the conference call by calling one of the following numbers or by connecting through the webcast linked below:

ITALY:	+39 028020911
UK:	+44 1 212818004
GERMANY:	+49 6917415712
FRANCE:	+33 170918704

SWITZERLAND:	+41 225954728
US (international local number)	+1 718 7058796
US (toll-free number)	+1 855 2656958
Link to the webcast: https://87399.choruscall.eu/links/piovan230913.html

Before the start of the conference call, a selection of slides shall be made available on the website www.piovan.com, in the Investors / Investor Relations / Presentations section.

*** This document contains "forward-looking statements" relating to future events and operating and financial results of Piovan Group. These statements by nature contain an element of risk and uncertainty in that they depend on future events and developments. The actual results may even diverge significantly from those announced, due to a range of factors.

The Executive Officer for Financial Reporting, Giovanni Rigodanza, declares in accordance with Article 154 bis, paragraph 2, of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the underlying accounting documents, records and accounting entries.

***

***

Consolidated Half-Year Financial Report as of June 30, 2023 will be filed in accordance with the time limit set out by law at the registered office of the Company (Via delle Industrie no. 16 – Santa Maria di Sala (Venice)) and at Borsa Italiana S.p.A., available to any person who submits a request, and will also be available on the website of the Company (www.piovan.com) as well as on the authorized storage mechanism ().

Piovan S.p.A. hereby announces that, in accordance with the laws and regulations in force, Consolidated Half-Year Financial Report as of June 30, 2023, as approved by the Board of Directors on September 12, 2023, has been filed, available to the public, at the registered office of the Company, on its website, (www.piovan.com) under the "Investors" / "Investor Relations"/"Financial statements" section, as well as on the authorized storage mechanism ().

***

FOR FURTHER DETAILS:

Piovan S.p.A. Investor Relations Giovanni Rigodanza ir@piovan.com Tel. 041 5799120

***

Piovan Group

Piovan Group is a global leader in the development and manufacturing of automation systems for the storage, conveying and processing of polymers, bio-resins, recycled plastic, food fluids, food and non-food powders. Over recent years, the Group has been particularly engaged in developing and producing automation systems for production processes for the bio-economies and circular economies for recycling and reusing plastic and for the production of plastics which are naturally compostable, tapping into cross selling opportunities.

***

The consolidated financial statements of Piovan Group follow.

CONSOLIDATED STATEMENTS OF EQUITY AND FINANCIAL POSITION

(€'000)

ASSETS	30.06.2023	31.12.2022
NON-CURRENT ASSETS
Property, plant and equipment	44,188	43,047
Right of Use	21,637	22,109
Intangible assets	124,539	128,297
Equity investments	11,839	10,832
Other non-current assets	605	574
Deferred tax assets	10,489	10,744
TOTAL NON-CURRENT ASSETS	213,297	215,603
CURRENT ASSETS
Inventories	88,653	90,188
Contract assets for work in progress	8,954	6,374
Trade receivables	88,959	89,771
Current financial assets	6,599	6,815
Tax receivables	7,586	5,469
Other current assets	12,594	13,156
Cash and cash equivalents	67,178	94,365
TOTAL CURRENT ASSETS	280,523	306,138
Assets held for sale and disposal groups		1,269
TOTAL ASSETS	493,820	523,010

LIABILITIES AND EQUITY	30.06.2023	31.12.2022
EQUITY
Share capital	6,000	6,000
Legal reserve	1,200	1,200
Reserve for own shares in portfolio	(2,489)	(2,208)
Translation reserve	2,368	3,952
Other Reserves and retained earnings	114,225	89,579
Net profit (loss)	22,610	34,588
Equity attributable to the owners of the parent	143,914	133,111
Equity attributable to non-controlling interests	2,328	1,819
TOTAL EQUITY	146,242	134,930
NON-CURRENT LIABILITIES
Long-term loans	96,957	107,311
Non-current financial liabilities	15,065	35,459
Employee benefits plans	5,304	5,445
Provision for risks and charges	5,351	4,956
Non-current liabilities for options granted to non-controlling interest	-	-
Other non-current liabilities	2,328	3,295
Deferred tax liabilities	14,966	15,591
TOTAL NON-CURRENT LIABILITIES	139,971	172,057
CURRENT LIABILITIES
Current portion of long-term loans	38,258	32,692
Current bank loans and borrowings	274	7,001
Current financial liabilities	23,473	3,503
Trade payables	67,763	77,292
Advance from customers	36,019	50,248
Contract liabilities for work in progress	4,197	7,060
Current liabilities for options granted to non-controlling interests	481	481
Tax liabilities and social security contributions	10,370	11,285
Other current liabilities	26,772	23,092
TOTAL CURRENT LIABILITIES	207,607	212,654
Liabilities associated with assets held for sale		3,369
TOTAL LIABILITIES	347,578	388,080
TOTAL LIABILITIES AND EQUITY	493,820	523,010

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

(€'000)

CONSOLIDATED STATEMENT OF PROFIT AND LOSS	30.06.2023	30.06.2022 (1)
Revenues	285,437	231,995
Other revenues and income	4,695	6,058
TOTAL REVENUES AND OTHER INCOME	290,132	238,053
Costs of raw materials, components and goods and changes in inventories	130,479	105,670
Services	53,905	48,589
Personnel expenses	65,989	55,634
Other expenses	2,301	1,451
Amortization and depreciation	6,886	8,127
TOTAL COSTS	259,560	219,471
OPERATING PROFIT	30,572	18,582
Financial income	883	386
Financial Expenses	(1,746)	(1,380)
Net exchange rate gain (losses)	(639)	3,346
Gains (losses) on liabilities for option granted to non-controlling interests	-	-
Profit (losses) from equity investments carried at equity	1,136	547
Profit (losses) from disposals	1,337	-
PROFIT BEFORE TAXES	31,544	21,481
Income taxes	9,703	6,494
NET PROFIT	21,840	14,987
ATTRIBUTABLE TO:
Owners of the parent	22,610	14,848
Non-controlling interests	(769)	139
Earnings per share
Basic earnings per share (in Euros)	0.44	0.30
Diluted earnings per share (in Euros)	0.44	0.29

(1) For the purposes of comparison, the statement of profit and loss figures for H1 2022 have been restated compared to the Half-Year Financial Report at June 30, 2022, following the definitive purchase price allocation for the IPEG group. Income taxes and the Net profit were restated.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(€'000)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	30.06.2023	30.06.2022 (1)
Net profit	21,840	14,987
Items that may be subsequently reclassified to profit or loss:		-
- Exchange rate differences	(1,456)	8,623
Other items valued using the equity method	(127)	518
Items that may not be subsequently reclassified to profit or loss:		-
- Actuarial gains (losses) on employee benefits net of the tax effect		-
- Actuarial gains on agents' termination benefits net of the tax effect		-
Total Comprehensive income	20,257	24,128
attributable to:		-
- Owners of the parent	21,154	23,989
- Non-controlling interests	(769)	139

(1) For the purposes of comparison, the statement of profit and loss figures for H1 2022 have been restated compared to the Half-Year Financial Report at June 30, 2022, following the definitive purchase price allocation for the IPEG group. Income taxes and the Net profit were restated.

CONSOLIDATED STATEMENT OF CASH FLOW (€'000)

Consolidated Statement of Cash Flow	30.06.2023	30.06.2022 (1) – (2)
OPERATING ACTIVITES
Net profit	21,840	14,987
Adjustments for:	-	-
Amortization and depreciation	6,886	8,127
Provision	1,976	1,283
Net non-monetary financial (income)	1,746	360
Change in employee benefits liabilities	(138)	(315)
(Plus) or minus from disposal of fixed assets and investments	-	-
Unrealized currency exchange rate (gains) losses	700	(3,342)
Non-monetary changes related to liabilities for options granted to non-controlling interests	-	-
Investment equity valuation	(1,136)	(547)
Other non-monetary variations	(31)	(459)
Taxes	9,703	6,495
Cash flows from operating activities before changes in net working capital	41,546	26,590
(Increase)/decrease in trade receivables	(348)	3,784
(Increase)/decrease in inventories	(460)	(13,328)
(Increase)/decrease in conctract assets and liabilities for work in progress	(5,476)	(4,341)
(Increase)/decrease in other current assets	(1,657)	(5,769)
Increase/(decrease) in trade payables	(8,575)	(1,053)
Increase/(decrease) in advance from customers	(13,818)	(3,170)
Increase/(decrease) in other current liabilities	(1,542)	(844)
(Increase)/decrease in non-current assets	(33)	(211)
Increase/(decrease) in non-current liabilities	127	1,855
Income taxes paid	(7,383)	(5,915)
CASH FLOWS FROM OPERATING ACTIVITIES (A)	2,381	(2,401)
INVESTING ACTIVITIES		-
Investments in property, plant and equipment	(3,742)	(1,294)
Disinvestments in property, plant and equipment	196	13
Investments in intangible assets	(780)	(217)
Disinvestments in intangible assets	-	42
Disinvestments/(investments) in financial assets	-	-
Disinvestments/(investments) in investments	-	-
Deferred price from the acquisition of controlling interest	-	-
Business combinations net of the acquired cash	-	(99,965)
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES (B)	(4,326)	(101,422)
FINANCING ACTIVITIES		-
Issuance of bank loans	10,000	109,688
Repayment of bank loans	(14,788)	(10,480)
Change in current bank loans and borrowings	(6,727)	(2,471)
Interests paid	(1,746)	(360)
Increase/(decrease) in other financial liabilities	(1,635)	(1,325)
Dividends paid	(10,206)	(5,193)
CASH FLOWS USED IN FINANCING ACTIVITIES (C)	(25,102)	89,859
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (A ± B ± C)	(27,047)	(13,964)
EFFECT OF EXCHANGE RATE CHANGES ON BALANCE OF CASH HELD IN FOREIGN CURRENCY	(140)	(61)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD (E)	94,365	118,505
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(27,187)	(13,964)
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (G=D+E+F)	67,178	104,480

(1) For the purposes of comparison, the statement of profit and loss figures for H1 2022 have been restated compared to the Half-Year Financial Report at June 30, 2022, following the definitive purchase price allocation for the IPEG group. Income taxes and the Net profit were restated.

(2) Restated as further explained in paragraph "Content, form and criteria for the preparation of the Condensed Half-Year Financial Statements at June 30, 2023".

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(€'000)

	Share Capital	Legal reserve	Treasury shares	Translation reserve	Other reserves and retained earnings	Profit for the year attributable to the owner of the parent (1)	Equity attributable to the owners of the parent (1)	Equity attributable to non controlling interests (1)	TOTAL EQUITY (1)
Balance at Jan, 1st, 2022	6,000	1,200	(2,250)	(1,104)	64,811	28,347	97,004	1,447	98,451
Allocation of prior year profit					28,347	(28,347)
Distribution of dividends					(5,093)		(5,093)	(100)	(5,193)
Incentive plans					222		222		222
Treasury shares			42		386		428		428
Translation reserve reclassification				(5)			(5)	5
Total comprehensive income (1)				9,141		14,848	23,989	139	24,128
Balance at June 30th, 2022 (1)	6,000	1,200	(2,208)	8,032	88,674	14,848	116,544	1,491	118,036

(1) For the purposes of comparison, the statement of profit and loss figures for H1 2022 have been restated compared to the Half-Year Financial Report at June 30, 2022, following the definitive purchase price allocation for the IPEG group. Income taxes and the Net profit were restated.

	Share Capital	Legal reserve	Treasury shares	Translation reserve	Other reserves and retained earnings	Profit for the year attributable to the owner of the parent	Equity attributable to the owners of the parent	Equity attributable to non controlling interests	TOTAL EQUITY
Balance at Jan, 1st, 2023	6,000	1,200	(2,208)	3,953	89,580	34,588	133,111	1,818	134,930
Allocation of prior year profit					34,588	(34,588)
Distribution of dividends					(10,206)		(10,206)		(10,206)
Incentive plans			(360)		(4)		(364)		(364)
Purchase of treasury shares			79		268		346		346
Disposals							-	1,279	1,279
Total comprehensive income				(1,583)		22,610	21,027	(769)	20,258
Balance at June 30th, 2023	6,000	1,200	(2,489)	2,370	114,225	22,610	143,914	2,328	146,242