2020

Consolidated Financial Statements

Independent Auditors' Report

(Pursuant to Articles 14 and 16 of Legislative Decree No. 39 of 27/1/2010)

The attached auditors' report and the related consolidated financial statements are in accordance with the original version in the Italian language filed at the registered office of Zignago Vetro SpA and published in accordance with law and, subsequent to this date, KPMG SpA has not undertaken any further audit work.

KPMG S.p.A. Revisione e organizzazione contabile Piazza Salvemini, 20 35131 PADOVA PD Telefono +39 049 8249101 Email [email protected] PEC [email protected]

(Translation from the Italian original which remains the definitive version)

Independent auditors' report pursuant to article 14 of Legislative decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no. 537 of 16 April 2014

To the shareholders of Zignago Vetro S.p.A.

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of the Zignago Vetro Group (the "Group"), which comprise the statement of financial position as at 31 December 2020, the income statement and statements of other comprehensive income, changes in equity and cash flows for the year then ended and notes thereto, which include a summary of the significant accounting policies.

In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Zignago Vetro Group as at 31 December 2020 and of its financial performance and cash flows for the year then ended in accordance with the International Financial Reporting Standards endorsed by the European Union and the Italian regulations implementing article 9 of Legislative decree no. 38/05.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilities under those standards are further described in the "Auditors' responsibilities for the audit of the consolidated financial statements" section of our report. We are independent of Zignago Vetro S.p.A. (the "Company") in accordance with the ethics and independence rules and standards applicable in Italy to audits of financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the consolidated financial statements of the current year.

KPMG S.p.A. e una società per azioni di diritto italiano e fa parte del KPMG di entità indipendenti affiliate a KPMG International Limited, società di diritto inglese

Ancona Bari Bergamo
Bologna Bolzano Brescia Catania Como Firenze Genova ecce Milano Napoli Novara Padova Palermo Parma Perugia Pescara Roma Torino Treviso Trieste Varese Veror

Società per azioni Capitale socia Euro 10.415.500.00 Lv. Registro Imprese Milano Monza Bnanza Lodi
e Codice Fiscale N. 00709600159 R.E.A. Milano N. 512867 Partita IVA 00709600159
VAT number IT00709600159 Sede legale: Via Vittor Pisani, 25 20124 Milano MI ITALIA

These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Recoverability of the investment in Vetri Speciali S.p.A.

Notes to the consolidated financial statements: section "Accounting policies - Interests in joint ventures" and note "4 - Equity-accounted investments"

Key audit matter	Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December 2020 include equity-accounted investments of €89.8 million, comprising the investment of €87.6 million in the joint venture Vetri Speciali S.p.A. (the "joint venture"), which is 50% held by the Company.	Our audit procedures included: - understanding the process adopted to test the joint venture's goodwill for impairment; understanding the process adopted to
The joint venture's equity used for its measurement includes goodwill attributable to the Company of €49.6 million.	prepare the 2021-2025 business plan approved by the joint venture's board of directors (the "2021-2025 plan") from which the expected cash flows used for impairment testing have been derived; analysing the reasonableness of the assumptions used by the joint venture's directors to prepare the 2021-2025 plan; - checking the actual figures at 31 December 2020, including the work
The joint venture calculated the recoverable amount of goodwill by estimating its value in use, using a method that discounts its expected cash flows. The model is very complex and entails the use of estimates which, by their very nature, are uncertain and subjective, about:
- the expected cash flows, calculated by taking into account the general economic performance and that of the joint venture's sector, the actual cash flows for recent years and the projected growth rates;	performed by the joint venture's auditors; - checking any discrepancies between the previous year business plans' figures and actual figures, in order to check the accuracy of the joint ventures' directors' estimation process .;
- the parameters used to calculate the discount rate. For the above reasons, we believe that recoverability of the investment in Vetri Speciali S.p.A. is a key audit matter.	comparing the cash flows used for impairment testing to the cash flows forecast in the joint venture's 2021-2025 plan and analysing any discrepancies;
	- involving experts of the KPMG network in the assessment of the reasonableness of the impairment testing model and related assumptions, including by means of comparison with external data and information;
	- assessing the appropriateness of the disclosures provided in the notes about the measurement of the investment in Votri Sneciali Sn A

Measurement of inventories

Notes to the consolidated financial statements: section "Accounting policies -Inventories" and note 8 "Inventories"

Key audit matter	Audit procedures addressing the key audit matter
The consolidated financial statements at 31 December 2020 include inventories of €95.8	Our audit procedures included:
million, net of the allowance for inventory write-down of €12.5 million.	understanding the process for the measurement of inventories and the related IT environment and assessing the design and implementation of controls and procedures to assess the operating effectiveness of material controls:
Determining the allowance for finished product write-down is a complex accounting estimate, entailing a high level of judgement as it is affected by many factors, including:
- the characteristics of the group's business segment;	checking any discrepancies between the previous years' forecast and actual inventory write-downs and losses, in order to check the accuracy of the joint ventures' directors' estimation process;
- the subjectivity inherent in a specific batch measurement method;
slow-moving issues;	analysing the reasonableness of the assumptions used to measure the allowance for inventory write-down through discussion with the relevant
the products' strong customisation.
For the above reasons, we believe that the measurement of inventories is a key audit matter.	internal departments and checks of the supporting documentation; comparing the assumptions with historical figures and our knowledge of the Group and its operating environment;
	assessing the appropriateness of the disclosures provided in the notes about inventories.

Responsibilities of the directors and board of statutory auditors ("Collegio Sindacale") of Zignago Vetro S.p.A. for the consolidated financial statements

The directors are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with the International Financial Reporting Standards endorsed by the European Union and the Italian regulations implementing article 9 of Legislative decree no. 38/05 and, within the terms established by the Italian law, for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The directors are responsible for assessing the Group's ability to continue as a going concern and for the appropriate use of the going concern basis in the preparation of the consolidated financial statements and for the adequacy of the related disclosures. The use of this basis of accounting is appropriate unless the directors believe that the conditions for liquidating the Company or ceasing operations exist, or have no realistic alternative but to do so.

The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, the Group's financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA Italia will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISA Italia, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
obtain an understanding of internal control relevant to the audit in order to design 1 audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control;
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors;
conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern;
evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance, identified at the appropriate level required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with the ethics and independence rules and standards applicable in Italy and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are, therefore, the key audit matters. We describe these matters in our auditors' report.

Report on other legal and regulatory requirements

Opinion pursuant to article 14.2.e) of Legislative decree no. 39/10 and article 123-bis.4 of Legislative decree no. 58/98

The directors of Zignago Vetro S.p.A. are responsible for the preparation of the Group's directors' report and report on corporate governance and ownership structure at 31 December 2020 and for the consistency of such reports with the related consolidated financial statements and their compliance with the applicable law.

We have performed the procedures required by Standard on Auditing (SA Italia) 720B in order to express an opinion on the consistency of the directors' report and the specific information presented in the report on corporate governance and ownership structure indicated by article 123-bis 4 of Legislative decree no. 58/98 with the Group's consolidated financial statements at 31 December 2020 and their compliance with the applicable law and to state whether we have identified material misstatements.

In our opinion, the directors' report and the specific information presented in the report on corporate governance and ownership structure referred to above are consistent with the consolidated financial statements of the Zignago Vetro Group at 31 December 2020 and have been prepared in compliance with the applicable law.

With reference to the above statement required by article 14.2.e) of Legislative decree no. 39/10, based on our knowledge and understanding of the entity and its environment obtained through our audit, we have nothing to report.

Statement pursuant to article 4 of the Consob regulation implementing Legislative decree no. 254/16

The directors of Zignago Vetro S.p.A. are responsible for the preparation of a consolidated non-financial statement pursuant to Legislative decree no. 254/16. We have checked that the directors had approved such consolidated non-financial statement. In accordance with article 3.10 of Legislative decree no. 254/16, we attested the compliance of the non-financial statement separately.

Padua, 29 March 2021

KPMG S.p.A.

(signed on the original)

Silvia Di Francesco Director of Audit

ZIGNAGO VETRO SpA Sede: Fossalta di Portogruaro (VE), Via Ita Marzotto n. 8

AI assistant

Zignago Vetro Audit Report / Information 2020

4402_rns_2021-03-30_e09d0550-c9d4-4e49-b598-654595e164b6.pdf

Independent auditors' report pursuant to article 14 of Legislative decree no. 39 of 27 January 2010 and article 10 of Regulation (EU) no. 537 of 16 April 2014