Zignago Vetro — Earnings Release 2020

Nov 6, 2020

PRESS RELEASE

In accordance with Consob Resolution 11971/99 and subsequent amendments and supplements

ZIGNAGO VETRO S.P.A.

Board of Directors of Zignago Vetro S.p.A. approves the 2020 Third Quarter Report

Results significantly improve in Q3, despite impacts of ongoing COVID-19 pandemic, with revenues and earnings significantly recovering.

Revenues decreased 4.2% in the first nine months, against 6.3% in the half-year, with the EBITDA margin rising to 25.6% from 24.9% in the first six months.

Strong progress made on the sustainability strategic objectives (ESG).

Group 9M 2020 Key Financial Highlights

• Revenues of Euro 302.2 million (-4.2% on 2019), of which exports account for 30.5%. Revenues in Q3 2020 stable on Q3 2019 and up 20.9% on Q2 2020.
• EBITDA of Euro 77.3 million (25.6% margin, -11.9%). In Q3 2020 totalling Euro 28.4 million (26.9% margin, -9.6% on Q3 2019 and up 27.1% on Q2 2020).
• EBIT of Euro 36.6 million (12.1% margin, -25%).
• Group profit of Euro 24.3 million (8.1% margin, -31.7%), including unrealised exchange rate losses on inter-company loan for Euro 2.6 million. In Q3 2020 amounting to Euro 10.4 million (9.8% margin, -21.5% on Q3 2019 and up 59.2% on Q2 2020), including exchange rate losses of Euro 0.8 million.

Cash generation, before investments, of Euro 63.6 million (21.1% of revenues). In Q3 2020, this totalled Euro 20.2 million.

Net financial debt of Euro 255.9 million (Euro 266.8 million at 30 June 2020).

Fossalta di Portogruaro, 6 November 2020 – The Board of Directors of Zignago Vetro S.p.A – a company listed on the STAR segment of the Italian Stock Exchange - in a meeting held today chaired by Paolo Giacobbo, approved the Interim Report at 30 September 2020.

Company profile

The Zignago Vetro Group companies produce high quality glass containers for the Food and Beverage, Cosmetics and Perfumery industries and Speciality Glass bottles for wines and spirits, for the domestic and international markets. The Group is also engaged in other sectors offering synergies with its core business particularly the collection and treatment of raw glass for subsequent reuse.

9M 2020 Zignago Vetro Group Operating Performance

The recovery on Group markets emerging in the latter weeks of the first half of the year continued in Q3 2020. Food container demand in particular developed strongly in Italy and in Europe, with the recovery in other segments such as liquors and beverages continuing in the wake of encouraging signals in the latter months of the first half of the year.

The Cosmetics and Perfumery market globally, despite the ongoing COVID-19 pandemic and continued social distancing and mobility restrictions, saw signs of an uneven recovery in demand, with the online channels performing better than traditional distribution, while travel retail however remains substantially stalled.

All Group companies continued to operate as normal, returning good results, while maintaining all appropriate prevention and protection measures against the ongoing COVID-19 emergency. In particular, in the third quarter, consolidated revenues grew approx. 21% over the second quarter, with the operating margin recovering significantly (+27%).

Strategic Sustainability Objectives (ESG)

At 30 September 2020, the Group had comfortably achieved the ESG objectives set for 2020, particularly in terms of the management of raw materials, energy efficiency and emissions.

Considerable water resource management improvements were achieved, although the ambitious 2020 objective has not yet been met due to the slowdown of some technical interventions due to COVID-19 related difficulties.

Among the significant events, we highlight the certification activities and the spending commitments on social and environmental initiatives, including support for COVID-19 emergency public health initiatives.

The indicators for the period are presented in Annex 9

Zignago Vetro Group 9M Key Financial Highlights (*)

	9M 2020 (in Euro millions)	9M 2019 (in Euro millions)	Cge.%
Revenues	302.2	315.4	- 4.2%
EBITDA	77.3	87.7	- 11.9%
EBIT	36.6	48.8	- 25.0%
Operating Profit	36.7	49.0	- 25.1%
Profit before taxes	32.1	46.3	- 30.6%
Group Profit	24.3	35.6	-31.7%
	9M 2020 (in Euro millions)	9M 2019 (in Euro millions)
Free cash flow (before investments)	63.6	57.6
Payments on fixed assets	(28.5)	(65.3)
Free cash flow net (see pages 4 & 5)	35.1	(7.7)
	30.09.2020 (in Euro millions)	30.09.2019 (in Euro millions)
Financial debt	(318.4)	(302.2)
Liquidity	62.5	39.1
Net financial debt	(255.9)	(263.1)

(*) The figures and the subsequent comments concerning the consolidated figures were based on the management view of the Group business, which provides for the proportional consolidation of the joint venture, in continuity with the accounting policies adopted until 31 December 2013. Following the entry into force of the new "IFRS 11 – Joint Arrangements" and "IAS 28 – Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method, as is the case for Julia Vitrum SpA from 31 December 2019, and should be recognised in the consolidated financial statements at equity.

The income statement, the statement of comprehensive income, the statement of financial position, the statement of cash flows and the statement of changes in equity of the Zignago Vetro Group at 30 September 2020 and 2019 and at 31 December 2019, prepared according to international accounting standards in force from 1 January 2014, are reported respectively at attachments 4, 5, 6, 7 and 8 of this press release.

Consolidated Revenues in the first nine months of 2020 amounted to Euro 302.2 million compared to Euro 315.4 million in the same period of the previous year (- 4.2%). Export sales in the January-September 2020 period amounted to Euro 92.2 million, 30.5% of revenues (-18.5% on Euro 113.2 million in the first nine months of 2019: 35.9% of revenues).

Consolidated EBITDA in 9M 2020 amounted to Euro 77.3 million, down 11.9% on 9M 2019 (Euro 87.7 million), with a margin of 25.6% (27.8% in 9M 2019).

The consolidated EBIT in the first nine months was Euro 36.6 million (-25% compared to Euro 48.8 million in 2019), with a margin of 12.1% (15.4% in 9M 2019).

The Group profit in the first nine months of 2020 was Euro 24.3 million, compared to Euro 35.6 million in the first nine months of 2019 (-31.7%) – a margin of 8.1% (11.3% in 9M 2019) and was impacted by unrealised exchange rate losses on an inter-company loan of Euro 2.6 million.

Net capital expenditure in the first nine months 2020 by Group companies totalled Euro 23.7 million (Euro 45.8 million in 9M 2019). Payments on fixed assets totalled Euro 28.5 million in 9M 2020, compared to Euro 65.3 million in 9M 2019.

The Group generated Free cash flow in the period, before payments on fixed assets, of Euro 63.6 million (Euro 57.6 million in the first nine months of 2019); after payments on fixed assets for Euro 28.5 million and dividends of Euro 37 million, the free cash flow was +Euro 35.1 million, compared to -Euro -7.7 million at 30 September 2019.

The Group net financial debt at 30 September 2020 was Euro 255.9 million, compared to Euro 251.4 million at 31 December 2019 (Euro 263.1 million at 30 September 2019). The net debt reduced Euro 11 million in the third quarter of 2020. Group liquidity at 30 September 2020 was Euro 62.4 million, compared to Euro 39.1 million at 30 September 2019 and Euro 48.9 million at 31 December 2019. Liquidity improved Euro 8 million in the third quarter of 2020.

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Zignago Vetro Group Q3 Key Financial Highlights

	Q3 2020 (in Euro millions)	Q3 2019 (in Euro millions)	Cge. %
Revenues	105.8	105.8	0%
EBITDA	28.4	31.4	- 9.6%
EBIT	14.7	18.0	- 18.7%
Operating Profit	14.6	18.1	- 19.3%
Profit before taxes	13.4	16.6	- 19.6%
Group Net Profit	10.4	13.2	- 21.5%

Consolidated Revenues in the third quarter of 2020 amounted to Euro 105.8 million, unchanged on the same period of the previous year. Export sales amounted to Euro 30 million (Euro 37.9 million in 2019: -21%). Q3 2020 revenues were up 20.9% on the preceding quarter.

Consolidated EBITDA in the third quarter of 2020 totalled Euro 28.4 million, a decrease of 9.6% compared to the same period in the previous year (Euro 31.4 million). The EBITDA margin was 26.9% (29.7% in the third quarter of 2019). Q3 EBITDA increased 27.1% on the preceding quarter.

The consolidated EBIT amounted to Euro 14.7 million (-18.7% compared to Euro 18.0 million in the third quarter of 2019), with a margin of 13.9% (17.1%).

The profit for the quarter increased 59.2% on the preceding quarter. The unrealised exchange rate effect in the quarter on the inter-company loan was a loss of Euro 0.8 million.

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Outlook

The markets again in October showed further signs of stabilisation, although it is currently too early to predict whether the recent virus outbreak will interrupt the ongoing recovery.

Within this general environment (excluding pandemic-related impacts which are unforeseeable), it is expected that the recovery in the third quarter shall continue into the final part of the year.

In addition, it is expected that the Group is currently able to manage this period of turbulence while maintaining a solid and balanced financial situation.

No other significant events after 30 September 2020 occurred.

There were no atypical and/or unusual transactions for the period ended 30 September 2020 as defined by Consob Communication DEM/6064293.

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Declaration

The Executive Responsible for Financial Reporting, Mr. Roberto Celot, 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.

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Interim Financial Report at 30 September 2020

The Interim Financial Report at 30 September 2020 will be made available to the public as soon as available and in accordance with law at the registered office of the company and on the company website www.gruppozignagovetro.com

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This press release is available on the website: www.gruppozignagovetro.com

For further information: Roberto Celot Chief Financial Officer & Investor Relations Manager Zignago Vetro S.p.A. 0421-246111 r.celot@zignagovetro.com

All the figures in the Consolidated Reclassified Income Statement and Statement of Financial Position (attachments 1, 2 and 3) reported below were prepared on the basis of management's view which considers the proportional consolidation of joint ventures appropriate, in line with the approach taken until 31 December 2013. Following the entry into force of the new "IFRS 11 – Joint Arrangements" and "IAS 28 – Interests in associates and joint ventures" the accounting policies changed for the consolidation of the joint ventures of the Zignago Vetro Group. In particular, from 1 January 2014 the joint ventures in Vetri Speciali SpA and Vetreco Srl may not be consolidated under the proportional method, as is the case from 1 January 2020 for Julia Vitrum SpA, and should be recognised in the consolidated financial statements at equity.

The statement of financial position, the income statement, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity of the Zignago Vetro Group at 30 September 2020 and 31 December and 30 September 2019, prepared in accordance with the accounting standards in force from 1 January 2014, are reported respectively in the subsequent attachments 4, 5, 6, 7 and 8.

ATTACHMENT 1

Zignago Vetro Group Reclassified Consolidated Income Statement (*)

(Management's view based on the accounting standards in force from 31 December 2013)

	9M 2020		9M 2019		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues Changes in finished and semi	302,187	100.0%	315,449	100.0%	(4.2%)
finished products and work in progress	9,074	3.0%	11,218	3.6%	(19.1%)
Internal production of fixed assets	1,084	0.4%	1,675	0.5%	(35.3%)
Value of production	312,345	103.4%	328,342	104.1%	(4.9%)
Cost of goods and services	(168,123)	(55.7%)	(171,367)	(54.3%)	(1.9%)
Value added	144,222	47.7%	156,975	49.8%	(8.1%)
Personnel expense	(66,894)	(22.1%)	(69,248)	(22.0%)	(3.4%)
EBITDA	77,328	25.6%	87,727	27.8%	(11.9%)
Amortisation & Depreciation	(39,977)	(13.2%)	(38,032)	(12.1%)	5.1%
Accruals to provisions	(776)	(0.3%)	(935)	(0.3%)	(17.0%)
EBIT Net recurring non-operating	36,575	12.1%	48,760	15.4%	(25.0%)
income (charges)	120	(0.1%)	223	0.1%	n.a.
Net non-recurring income	9	0.0%	---	---	n.a.
O perating Profit	36,704	12.1%	48,983	15.5%	(25.1%)
Net financial expense	(2,161)	(0.7%)	(2,075)	(0.8%)	4.1%
Net exchange rate gains/(losses)	(2,401)	(0.8%)	(621)	---	n.a.
Profit before taxes	32,142	10.6%	46,287	14.7%	(30.6%)
Income taxes (Tax-rate 9M 2020: 24.2%) (Tax-rate 9M 2019: 23.3%)	(7,770)	(2.5%)	(10,776)	(3.4%)	(27.9%)
(Profit) Loss non-con. int.	(25)	n.a.	123	n.a.	n.a.
Profit for the period	24,347	8.1%	35,634	11.3%	(31.7%)

Zignago Vetro Group

Reclassified Consolidated Income Statement (*)

(Management's view based on the accounting standards in force from 31 December 2013)

	Q3 2020		Q3 2019		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	105,760	100.0%	105,760	100.0%	0.0%
Changes in finished and semi-finished
products and work in progress	(322)	(0.3%)	5,113	4.8%	(106.3%)
Internal production of fixed assets	256	0.2%	144	0.1%	77.8%
Value of production	105,694	99.9%	111,017	104.9%	(4.8%)
Cost of goods and services	(56,013)	(52.9%)	(57,685)	(54.5%)	(2.9%)
Value added	49,681	47.0%	53,332	50.4%	(6.8%)
Personnel expense	(21,253)	(20.1%)	(21,898)	(20.7%)	(2.9%)
EBITDA	28,428	26.9%	31,434	29.7%	(9.6%)
Amortisation & Depreciation	(13,616)	(12.9%)	(13,054)	(12.3%)	4.3%
Accruals to provisions	(149)	(0.1%)	(343)	(0.3%)	(56.6%)
EBIT	14,663	13.9%	18,037	17.1%	(18.7%)
Net recurring non-operating income (charges)	(271)	(0.3%)	5 5	---	n.a.
Net non-recurring income	203	0.2%	---	---	n.a.
O perating Profit	14,595	13.8%	18,092	17.1%	(19.3%)
Net financial expense	(685)	(0.7%)	(460)	(0.4%)	48.9%
Net exchange rate gains/(losses)	(533)	(0.5%)	(1,004)	(1.0%)	(46.9%)
Profit before taxes	13,377	12.6%	16,628	15.7%	(19.6%)
Income taxes	(2,939)	(2.8%)	(3,327)	(3.1%)	(11.7%)
(Tax-rate Q3 2020: 22.0%)
(Tax-rate Q3 2019: 20.0%)
(Profit) Loss non-con. int.	(77)	0.0%	(99)	(0.1%)	(22.2%)
Profit for the period	10,361	9.8%	13,202	12.5%	(21.5%)

Zignago Vetro Group

Reclassified Consolidated Statement of Financial Position(*)

(Management's view based on the accounting standards in force from 31 December 2013)

		30.09.2020		30.06.2020	31.12.2019		30.09.2019
	Euro thou.	%	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	97,478		88,987		94,779		99,867
Other receivables	16,459		15,953		24,322		18,734
Inventories	121,483		120,935		109,379		109,909
Current non-financial payables	(101,661)		(96,054)		(94,907)		(95,749)
Payables on fixed assets	(6,719)		(5,459)		(11,562)		(6,134)
A) Working capital	127,040	27.4%	124,362	26.7%	122,011	25.8%	126,627	27.1%
Net tangible and intangible assets Goodwill	301,566 43,183		306,441 43,197		317,776 43,228		308,623 43,208
Other equity investments and non current assets	7,740		6,216		5,473		4,460
Non-current provisions and non financial payables	(15,100)		(15,241)		(15,196)		(16,170)
B) Net fixed capital	337,389	72.6%	340,613	73.3%	351,281	74.2%	340,121	72.9%
A+B= Net capital employed	464,429	100.0%	464,975	100.0%	473,292	100.0%	466,748	100.0%
Financed by:
Current loans and borrowings	116,077		144,509		153,703		168,170
Cash and cash equivalents	(62,451)		(54,425)		(48,876)		(39,116)
Current net debt	53,626	11.5%	90,084	19.4%	104,827	22.1%	129,054	27.6%
Non-current loans and borrowings	202,235	43.5%	176,741	38.0%	146,583	31.0%	134,023	28.7%
C) Net financial debt	255,861	55.1%	266,825	57.4%	251,410	53.1%	263,077	56.4%
Opening equity	221,946		221,946		200,132		200,132
Dividends paid in the period	(37,005)		(37,005)		(31,569)		(31,569)
Change in translation reserve & other eq. changes Profit	(681)		(661)		330		(412)
for the period	24,347		13,986		53,053		35,634
D) Group equity	208,607	44.9%	198,266	42.6%	221,946	46.9%	203,785	43.7%
E) Non-controlling interest equity	(39)	0.1%	(116)	(0.0%)	(64)	(0.0%)	(114)	(0.0%)
D+E) Total Consolidated Equity	208,568		198,150		221,882		203,671
C+D+E = Total financial debt and equity	464,429	100.0%	464,975	100.0%	473,292	100.0%	466,748	100.0%

Zignago Vetro Group

Consolidated Income Statement (*)

(based on IAS in force from 1 January 2014)

Consolidated Income Statement

	Q3 2020	Q3 2019	9M 2020	9M 2019
(Euro thousands)
			-
Revenues	80,940	81,842	229,458	242,074
Raw material, ancillary,
consumables and goods	(16,718)	(13,700)	(40,441)	(41,522)
Service costs	(27,543)	(27,039)	(83,233)	(82,133)
Personnel expense	(16,095)	(16,901)	(51,373)	(53,499)
Amortisation & Depreciation	(11,015)	(10,772)	(32,767)	(31,420)
Other operating costs	(886)	(1,036)	(3,015)	(3,480)
Other operating income	159	258	881	920
Equity-accounted joint ventures	4,156	4,007	12,967	13,490
O perating Profit	12,998	16,659	32,477	44,430
Financial income	1 7	107	221	180
Financial expense	(589)	(463)	(2,082)	(1,910)
Net exchange rate gains/(losses)	(483)	(1,013)	(2,347)	(631)
Profit before taxes	11,943	15,290	28,269	42,069
Income taxes	(1,505)	(1,989)	(3,897)	(6,558)
Profit for the period	10,438	13,301	24,372	35,511
Non-controlling interests loss (profit)	(77)	(99)	(25)	123
Group Profit	10,361	13,202	24,347	35,634
Earnings per share:
Basic (and diluted) earnings per share	0.122	0.155	0.286	0.418

Zignago Vetro Group

Consolidated Statement of Comprehensive Income (*)

(based on IAS in force from January 1, 2014)

	Q3 2020	Q3 2019	9M 2020	9M 2019
(Euro thousands)
Profit for the period	- 10,361	13,301	- 24,347	35,511
Items that will be subsequently reclassified to profit or loss
Translation difference for foreign operations	(505)	(199)	(1,711)	(412)
Tax effect				---
	(505)	(199)	(1,711)	(412)
Total items that will be subsequently reclassified to profit or loss	(505)	(199)	(1,711)	(412)
Items that will not be subsequently reclassified to profit or loss
Actuarial gains/(losses) on defined benefit plans	---	---	---	---
Tax effect	---	---	---	---
	---	---	---	---
Total items that will not be subsequently reclassified to profit or loss	---	---	---	---
O ther comprehensive income (expense) for the year, net of taxes	(505)	(199)	(1,711)	(412)
Total comprehensive income for the period	9,856	13,102	22,636	35,099
Attributable to:
Owners of the parent	9,856	13,102	22,636	35,099
Non-controlling interests (Loss)	(77)	(99)	(25)	123
	9,779	13,003	22,611	35,222

Zignago Vetro Group

Consolidated Statement of Financial Position (*)

(based on IAS in force from 1 January 2014)

ASSETS Non-current assets Property, plant and equipment 224,150 229,069 242,479 Goodwill 2,693 2,707 2,738 Intangible assets 1,939 2,092 2,402 Equity-accounted Joint Ventures 83,848 79,469 83,055 Equity investments 387 389 389 Other non-current assets 958 747 487 Deferred tax assets 3,948 4,325 4,044 Total non-current assets 317,923 318,798 335,594 Current assets Inventories 99,709 99,421 89,761 Trade receivables 77,747 68,605 78,022 Other current assets 10,752 12,408 14,705 Tax Assets 3,445 3,912 5,215 Cash and cash equivalents 53,083 47,585 44,805 Total current assets 244,736 231,931 232,508 TO TAL ASSETS 562,659 550,729 568,102 EQUITY & LIABILITIES EQ UITY Share capital 8,800 8,800 8,800 Reserves 40,465 39,733 39,356 Treasury share purchases (1,093) (1,093) (1,093) Retained earnings and profit for the period 136,088 136,840 121,830 Other equity items 24,347 13,986 53,053 TO TAL EQ UITY O WNERS O F THE PARENT 208,607 198,266 221,946	241,692 2,718 263 78,533 389 259 3,116 326,970
	88,857
	81,654
	14,621
	5,949
	31,954
	223,035
	550,005
	8,800
	39,890
	(1,093)
	120,554
	35,634
	203,785
NO N-CO NTRO LLING INT. EQ UITY (39) (116) (64)	(114)
TO TAL EQ UITY 208,568 198,150 221,882	203,671
LIABILITIES
Non-current liabilities
Provisions for risks and charges 3,900 3,967 3,963	4,462
Post-employment benefits 4,442 4,414 4,299	4,245
Non-current loans and borrowings 163,759 137,214 123,710	107,850
Other non-current liabilities 1,443 1,876 1,876	2,145
Deferred tax liabilities 2,207 2,212 2,230	2,079
Total non-current liabilities 175,751 149,683 136,078	120,781
Current liabilities Bank loans and borrowings
non-current portion 93,730 120,123 127,915	141,144
Trade and other payables 62,040 59,938 60,005	60,500
Other current liabilities 19,043 20,439 20,945	19,413
Current income taxes 3,527 2,396 1,257	4,496
Total current liabilities 178,340 202,896 210,122	225,553
TO TAL LIABILITIES 354,091 352,579 346,200	346,334
TO TAL EQ UITY AND LIABILITIES 562,659 550,729 568,082	550,005

Zignago Vetro Group

Consolidated Statement of Cash Flows (*)

(based on IAS in force from 1 January 2014)

(Euro thousands) 9M 2020 H1 2020 12 months 2019 CASH FLO W FRO M O PERATING ACTIVITIES: Profit before taxes 28,269 16,326 62,640 42,069 Adjustments to reconcile net profit with cash flow generated from operating activities: Amortisation & Depreciation 32,657 21,752 39,946 31,158 Losses/(gains) on sale of property, plant & equipment 7 2 7 2 (264) --- Accrual to allowance for impairment 4 4 4 4 188 466 Net changes to post-employment benefits 143 115 (230) (284) Net changes to other provisions (63) 4 (294) 205 Change in asset items due to translation effect 3,346 2,356 --- 887 Financial income and exchange rate gains 2,126 1,660 (1,550) 451 Financial expenses and exchange rate losses 2,082 1,493 2,236 2,541 Income taxes paid in the period 216 (249) (13,536) (7,152) Equity-accounted joint ventures (12,967) (8,811) (18,087) (13,490) Dividends distributed by equity-accounted joint ventures 12,377 12,377 10,213 10,213 Changes in operating assets and liabilities: Decrease/(increase) in trade receivables 231 9,373 (13,307) (17,217) Decrease/(increase) in other current assets 3,953 2,297 2,125 2,209 Decrease/(increase) in inventories (9,948) (9,680) (10,578) (9,674) Increase/(decrease) in trade & other payables 3,942 2,994 4,805 6,816 Increase/(decrease) in other current liabilities (1,902) (506) 1,018 (514) Change in other non-current assets and liabilities (906) (259) 158 646 Total adjustments and changes 35,403 35,032 2,843 7,261 (A) 63,672 51,358 65,483 49,330 Net Cash Flows from operating activities CASH FLO W FRO M INVESTING ACTIVITIES: Gross investments in intangible assets --- --- (2,974) (138) Gross investments in property, plant and equipment (18,167) (11,125) (46,346) (39,173) Increase/(decrease) in payables for purchases of non-current assets (1,907) (3,061) (17,548) (19,087) Equity investments 2 --- 2 --- Sales price of securities --- --- --- --- Sales price of property, plant and equipment 892 744 264 9 3 Net cash flow used in (B) (19,180) (13,442) (66,602) (58,305) investing activities CASH FLO WS FRO M FINANCING ACTIVITIES: Interest paid in the period, incl. currency effects (1,296) (1,073) (2,144) (2,367) Interest received in the period (2,339) (1,679) 864 (241) Net increase (decrease) of short-term bank payables (41,914) (10,234) 49,556 59,306 Net change non-current loans and borrowings 47,778 15,946 (3,498) (16,216) Distribution of dividends (37,005) (37,005) (31,569) (31,569) Other changes 304 115 --- 114 (C) (34,472) (33,930) 13,209 9,027 Net cash flow used in financing activities (D) (1,742) (1,206) 304 (436) Change in equity due to currency conversion effect Net change in cash and cash equivalents (A+B+C+D) 8,278 2,780 12,394 (384) Vetro Revet cash and cash equivalents 7 3 Cash & cash equivalents at beginning of period 44,805 44,805 32,338 32,338	(based on IAS in force from 1 January 2014)
					9M 2019
	Cash & cash equivalents at end of the period	53,083	47,585	44,805	31,954

Zignago Vetro Group

Statement of changes in Equity (*)

(based on IAS in force from 1 January 2014)

	Share capital	Legal reserve	reserve Revaluation	Other reserves	Capital paid-in	Treasury shares	Translation reserve	Actuarial profit/(loss) on ind. deferred benefit plans	Retained earnings	Profit for the period	interest equity Total non-controlling	Total consolidated equity
B a la n c e a t 3 0 Ju n e 2 0 19	8 , 8 0 0	1, 7 6 0	2 7 , 3 3 4	11, 5 9 2	15 7	(1, 0 9 3 )	(9 6 9 )	(9 2 2 )	12 2 , 2 2 9	2 2 , 4 3 2	(2 13 )	19 1, 10 7
Profit (Loss)	---	---	---	---	---	---	---	---	---	13,202	9 9	13,301
Othe r profits/(losse s), ne t of tax e ffe c t	---	---	---	(46)	---	---	(691)	---	---	---	---	(737)
Tota l Comp. Inc ome (e xpe nse )	---	---	---	(46)	---	---	(691)	---	---	13,202	9 9	12,564
Alloc a tion of re sult	---	---	---	---	---	---	---	---	---	---	---	---
B a la n c e a t 3 0 S e p te mb e r 2 0 19	8 , 8 0 0	1, 7 6 0	2 7 , 3 3 4	11, 5 4 6	15 7	(1, 0 9 3 )	(1, 6 6 0 )	(9 2 2 )	12 2 , 2 2 9	3 5 , 6 3 4	(114 )	2 0 3 , 6 7 1
Profit (Loss)	---	---	---	---	---	---	---	---	---	17,419	5 0	17,469
Othe r profits/(losse s), ne t of tax e ffe c t	---	---	---	---	---	---	---	(266)	---	---	---	(266)
Tota l Comp. Inc ome
(loss)	---	---	---	---	---	---	---	(266)	---	17,419	5 0	17,203
Othe r c ha nge s	---	---	---	691	---	---	716	---	(399)		---	1,008
Alloc a tion of non- c ontrolling inte re sts e q.	---	---	---	---	---	---	---	---	---	---	---	---
Distribution of divide nds	---	---	---	---	---	---	---	---	---	---	---	---
B a la n c e a t 3 1 De c e mb e r 2 0 19	8 , 8 0 0	1, 7 6 0	2 7 , 3 3 4	12 , 2 3 7	15 7	(1, 0 9 3 )	(9 4 4 )	(1, 18 8 )	12 1, 8 3 0	5 3 , 0 5 3	(6 4 )	2 2 1, 8 8 2
Profit (Loss)	---	---	---	---	---	---	---	---	---	13,986	(52)	13,934
Othe r profits/(losse s), ne t of tax
e ffe c t Tota l Comp. Inc ome	---	---	---	---	---	---	(1,206)	---	---	---	---	(1,206)
(e xpe nse )	---	---	---	---	---	---	(1,206)	---	---	13,986	(52)	12,728
Alloc a tion of re sult	---	---	---	---	---	---	---	---	53,053	(53,053)	---	---
Othe r c ha nge s	---	---	---	1,059	---	---	---	---	(1,038)	---	---	2 1
IFRS 2	---	---	---	524	---	---	---	---	---	---	---	524
Move me nt non- c ontrolling
inte re sts e q.	---	---	---	---	---	---	---	---	---	---	---	---
Distribution of divide nds	---	---	---	---	---	---	---	---	(37,005)	---	---	(37,005)
B a la n c e a t 3 0 Ju n e 2 0 2 0	8 , 8 0 0	1, 7 6 0	2 7 , 3 3 4	13 , 8 2 0	15 7	(1, 0 9 3 )	(2 , 15 0 )	(1, 18 8 )	13 6 , 8 4 0	13 , 9 8 6	(116 )	19 8 , 15 0
Profit (Loss)	---	---	---	---	---	---	---	---	---	10,361	7 7	10,438
Othe r profits/(losse s), ne t of tax e ffe c t	---	---	---	---	---	---	(505)	---	---	---	---	(505)
Tota l Comp. Inc ome
(e xpe nse )	---	---	---	---	---	---	(505)	---	---	10,361	7 7	9,933
Alloc a tion of re sult	---	---	---	---	---	---	---	---	---	---	---	---
Othe r c ha nge s	---	---	---	223	---	---	---	---	---	---	---	223
IFRS 2 Move me nt non- c ontrolling	---	---	---	262	---	---	---	---	---	---	---	262
inte re sts e q.	---	---	---	---	---	---	---	---	---	---	---	---
Distribution of divide nds	---	---	---	---	---	---	---	---	---	---	---	---
B a la n c e a t 3 0 Ju n e 2 0 2 0	8 , 8 0 0	1, 7 6 0	2 7 , 3 3 4	14 , 3 0 5	15 7	(1, 0 9 3 )	(2 , 6 5 5 )	(1, 18 8 )	13 6 , 8 4 0	2 4 , 3 4 7	(3 9 )	2 0 8 , 5 6 8

Zignago Vetro Group ATTACHMENT 9

ESG: main indicators and KPI's (*)

Topic	KPIs	2019	2020	30.09.20	2025
		actual	Objectives	actual	Strategic objectives:
Raw materials management	% of recycled glass of total raw materials	46.5%	49%	50.6%	53.2%
Energy	Energy consumption per tonne of glass produced	Cge.%: - 5.5%	Cge.%: - 1.7%	Cge.%: - 5.7%	Cge.%: - 6.7%
efficiency	% of electricity from renewable sources	40.60%	45%	45.8%	77.7%
Water resource management	Specific water consumption per tonne of glass produced	Cge.%: - 33.9%	Cge.%: - 25.5%	Cge.%: - 14.9% (Note A)	Cge.%: - 30%
Emissions	Specific CO2 emissions	Cge.%: - 5.7%	Cge.%: - 1.1%	Cge.%: - 7.3%	Cge.%: - 17.6%
Other				ISO 14001 in Poland: completion ● expected by December 2020	Maintain current certifications
	Group certifications	adoption ISO 14001 in Italy	adoption ISO 14001 in Poland	FSSC 22000 underway in Empoli, ● expected by mid-2021 and in Fossalta by 2022	Adopt following new certifications: ● ISO 45000 in Empoli by 2022 and in
				ISO 9001 in France underway and ● expected by 2021	Fossalta by 2024 ● ISO 50000 by 2025
		Ecovadis: Silver rating	Ecovadis: obtain Gold Ecovadis: being updated rating		Further improve Ecovadis and CDP scores
		CDP score B	CDP score A-	CDP being updated
	Social / environmental initiatives	over 10 projects supported	€ 100,000 budgeted for social/environmental support initiatives	Euro 230,000 (includes COVID-19 emergency aid)	€ 100,000 per year budgeted for this topic

Note A : Not all technical work carried due to COVID-19

(*) 2020 data not audited