Zignago Vetro — Interim / Quarterly Report 2023

Aug 9, 2023

Interim Financial Report at 30 June 2023

Interim Financial Report at 30 June 2023

Zignago Vetro SpA

Registered office: Fossalta di Portogruaro (VE), Via Ita Marzotto 8 Share capital Euro 8,932,000.00, subscribed and paid-in for Euro 8,926,308 Tax and Venice Company Register No.: 00717800247

www.zignagovetro.com

ZIGNAGO VETRO GROUP STRUCTURE 5
COMPANY BODIES 6
THE ZIGNAGO VETRO GROUP 8
THE COMPANY 28
THE CONSOLIDATED COMPANIES 33
Significant events after 30 June 2023 57
Outlook 57
Statement of financial position 60
Income Statement 61
Statement of Comprehensive Income 62
Statement of Cash Flows 63
Statement of changes in Equity 64
NOTES TO THE FINANCIAL STATEMENTS 66
Statement of the Condensed Interim Consolidated Financial Statements as per Article 81-ter of CONSOB Regulation No. 11971 of 14 May 1999 and subsequent
modifications and integrations 108
INDEPENDENT AUDITORS' REPORT 110

ZIGNAGO VETRO GROUP STRUCTURE AT 28 JULY 2023

ACTIVITIES AND SHAREHOLDINGS

COMPANY BODIES

BOARD OF DIRECTORS BOARD OF STATUTORY AUDITORS

in office for the three-year period 2022 - 2024 in office for the three-year period 2022 - 2024

vice chairperson Andrea Manetti Franco Moscetti

chief executive officer Cesare Conti Roberto Cardini Tognin Roberta

directors Alessia Antonelli Supervisory Board Roberta Benaglia __________________________________ Daniela Manzoni Nicola Campana Gaetano Marzotto Luca Marzotto Stefano Marzotto Barbara Ravera

Control and Risks and Independent Auditors Sustainability Committee for the 2016 - 2024 period

Alessia Antonelli Luca Marzotto Giorgina Gallo

Remuneration Committee Roberto Celot

Daniela Manzoni Stefano Marzotto general manager Franco Moscetti Michele Pezza

Committee for Transactions commercial management with Related Parties Biagio Costantini

Alessia Antonelli Roberta Benaglia technical manager

Lead Independent Director

Franco Moscetti

chairperson statutory auditors Nicolò Marzotto Alberta Gervasio - chairperson Carlo Pesce

alternate auditors

Ferdinando Businaro Alessandro Bentsik - chairperson Giorgina Gallo Massimiliano Agnetti

KPMG SpA

Management

chief financial officer of the Group and investor relations manager

_____________________________ Stefano Bortoli

Barbara Ravera Sergio Pregliasco

Interim Directors' Report

THE ZIGNAGO VETRO GROUP

The Zignago Vetro Group operates in the production and marketing of high quality hollow glass containers prevalently for the Food and Beverage, Cosmetics and Perfumery and "Specialty Glass" sectors (highly customised glass containers in small batches, typically used for wine, liquors and oils).

The Zignago Vetro Group operates in the market with a business-to-business model, supplying containers to its clients, which are then used in their respective industrial activities. Specifically, in the Italian market, the Group is one of the leading producers and distributors of glass containers for the food and beverage sector, while at international level it has a strong market share in the cosmetics and perfumery and specialty glass sectors.

* * *

The Annual and Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board ("IASB") and endorsed by the European Union in accordance with Regulation No. 1606/2002 ("IFRS").

In particular, the condensed interim consolidated financial statements of the Group at 30 June 2023 (hereafter the "Condensed Interim Financial Statements") are prepared in accordance with IAS 34 "Interim Reporting" and Article 154-ter of the CFA, following the summary form permitted under the standard. The Condensed Interim Financial Statements therefore do not include all the information published in the annual report and must be read together with the financial statements at 31 December 2022 for full and complete disclosure of the Group financial position, results of operations and cash flow.

The accounting policies adopted for the preparation of the Condensed Interim Financial Statements are the same as those utilised for the consolidated financial statements of the Zignago Vetro Group for the year ended 31 December 2022, except for the adoption of the new standards, amendments and interpretations approved by the IASB and endorsed for adoption in Europe and obligatory for accounting periods beginning 1 January 2023.

We recall that IFRS 11 - Joint arrangements, applicable for the Group from 1 January 2014, replaces IAS 31 Interests in Joint Ventures and SIC 13 Jointly Controlled Entities – Non-Monetary Contributions by Venturers, and identifies, on the basis of the rights and obligations of the participants, two types of agreements - joint operations and joint ventures - and governs the consequent accounting treatment to be adopted for recognition in the financial statements, removing the option to consolidate jointly controlled companies proportionally and requiring jointly controlled companies defined as joint ventures to be recognised using the equity method.

In the condensed interim consolidated financial statements of the Group at 30 June 2023 and the comparative financial statements at 30 June 2022 and the financial statements at 31 December 2022, the Group recognised the investments held in Vetri Speciali, Vetreco and Julia Vitrum, which are classified as joint venture under the equity method, instead of the proportional consolidation method.

However, in the Directors' Report the figures (and the subsequent comments) are based on the "management view of the Group business", which provides for the proportional consolidation of joint ventures, in continuity with the accounting policies adopted until 31 December 2013. These figures however must not be considered as an alternative to those provided for by IFRS, but rather exclusively for supplementary disclosure and reflective of management's view of the business.

For this purpose, a reconciliation of the Statement of Financial Position and of the Income Statement, prepared according to IFRS in force from 1 January 2014 and those in force at 31 December 2013, is provided in the Directors' Report.

Pursuant to CONSOB communication DEM 6064293 of July 28, 2006 and ESMA/2015/1415 recommendations on alternative performance indicators utilised by the Parent - which although not specifically defined by IAS/IFRS are considered particularly useful to monitor the business performance we provide the following information:

• net financial debt is defined by the Company as the sum of current loans and borrowings, cash and cash equivalents and non-current loans and borrowings, net of cash and cash equivalents and current financial assets. This net figure is the same as the net financial position as per CONSOB communication No. DEM/6064293 of 28 July 2006;
• value of production: the Company defines this as the arithmetical sum of revenues, the change in finished products, semi-finished products, and work-in-progress and the internal work capitalised;
• value added: the Company defines this as the difference between value of production and raw materials consumed (purchase costs plus or minus the change in raw materials and service costs);
• EBITDA: the Company defines this as a difference between value added and personnel expense (including those of temporary workers), plus the effect of the measurement of joint ventures using the equity method. EBITDA is a measure utilised by the issuer to monitor and measure operating performance although it is not an accounting measure under IFRS. The measurement criteria of this indicator may not be in line with that utilised by other entities and therefore it may not be entirely comparable.

Within this context, the issuer utilised a calculation model in line with its core business which included the effects deriving from the application of IFRS 11. The Company considers the results deriving from its equity investments in joint ventures as operating items and non-financial items of the Group's business, related to a clearly defined investment strategy and as such classified within the Groups interim operating results;

• EBIT: the Company defines this as the difference between Ebitda and depreciation & amortisation of property, plant and equipment and intangible assets and accruals to the provision for impairment;

• operating profit: this performance measure is also contained in IFRS and is defined as the difference between EBIT and the net balance of non-recurring operating costs and income. We point out that this latter item includes incidental income and costs, capital gains and losses on sales of assets, insurance compensation and other minor positive and negative items;

• free cash flow: the Company defines this as the sum of the cash flows from operating activities and cash flows from investing activities.

The figures reported in the Directors' Report and in the tables of the Notes are shown in thousands of Euro for greater clarity.

The amounts in the Directors' Report are expressed in millions of Euro, while those in the Notes are stated in thousands of Euro.

* * *

The Zignago Vetro Group, according to management's view, operates through seven Business Units, each being a separate legal entity. Given this, information concerning the operating performance of the various business segments and geographical areas (segment reporting as per IFRS 8) is included in the illustration of the financial reporting data for each company and is an integral part of this Directors' Report.

Segment reporting which coincides with the various legal entities is provided below, independently of the respective consolidation method applied.

Disclosure by region is not considered appropriate for the Group. The operating segments ("Business Units") are identified as follows:

• Zignago Vetro SpA: this Business Unit carries out the production of glass containers for food and beverages and for cosmetics and perfumery;
• Zignago Vetro Polska SA: this Business Unit undertakes the production of a wide range of customised containers for cosmetic and perfumery containers and also for food and beverage niche markets worldwide;
• Zignago Vetro Brosse SAS: this Business Unit carries out the production of glass containers for perfumes;
• Vetri Speciali SpA: this Business Unit includes the production of specialty containers, principally for wine, vinegar and olive oil;
• Zignago Glass USA Inc.: this Business Unit carries out the sales promotion of glass containers for food and beverages and for cosmetics and perfumery in North America;
• Tre-Ve Srl: this Business Unit is engaged in the marketing of glass containers, mainly in Italy;
• Verreries du Sud Est Sarl: this Business Unit is engaged in the marketing of glass containers, mainly in Italy;
• Vetreco Srl, Vetro Revet Srl and Julia Vitrum SpA: these Business Units are engaged in the processing of raw glass into the finished material ready for use by glassmakers;
• Nuova RO-CO Srl, Officina Meccanica Garbellini Srl and Italian Glass Moulds Srl: this Business Unit is engaged in the marketing and regeneration of glass container moulds.

The consolidation scope of the Zignago Vetro Group at 30 June 2023 and at 31 December 2022 was as follows:

• Zignago Vetro SpA (parent)

The companies consolidated using the line-by-line method are as follows:

• Zignago Vetro Brosse SAS,
• Zignago Vetro Polska S.A.,
• Zignago Glass USA Inc.,
• Vetro Revet Srl,
• Italian Glass Moulds Srl Entry into the consolidation scope from 01.10.2022.

The companies valued under the equity method are the following:

• Vetri Speciali SpA and its subsidiaries Tre-Ve Srl, Verreries du Sud Est Sarl, Nuova RO-CO Srl and Officina Meccanica Garbellini Srl;
• Vetreco Srl
• Julia Vitrum SpA

The basis of consolidation and measurement criteria, including the equity investments held by Zignago Vetro S.p.A. are outlined in the paragraph "accounting principles and measurement criteria" in the notes to the consolidated financial statements.

In the Directors' Report, as previously stated, the figures are based on the "management view of the Group business", which provides for the proportional consolidation of joint ventures, in continuity with the accounting policies adopted until 31 December 2013.

Legally-required audit

The appointment for the legally-required audit of the Annual Financial Statements and the review of the condensed interim financial statements was awarded to KPMG SpA for the 2016-2024 period.

Significant events in the first half of 2023

Distribution of dividends

The Shareholders' Meeting of Zignago Vetro SpA on 4 May 2023 approved the distribution of a dividend of Euro 0.60 per share, totalling Euro 53.3 million, with payment date of 17 May 2023.

Treasury shares

On 4 May 2023, the Shareholders' Meeting of Zignago Vetro SpA revoked, for the part not executed, the resolution granted in favour of the Board of Directors to purchase and sell treasury shares, as approved by the Shareholders' Meeting of 29 April 2022 and authorised the Board of Directors to purchase and sell treasury shares for a maximum number not exceeding the total nominal amount, including any shares held by subsidiaries, corresponding to one-fifth of the share capital. The new authorisation is proposed for a period of 18 months, commencing from 4 May 2023. The minimum purchase price shall not be less than 20%, and the maximum price not more than 20%, of the share price registered on the trading day prior to each transaction; the sale price shall not be 20% higher or lower than the share price registered on the trading day prior to each transaction. These price limits will not be applied where the sale of shares is to employees, including management, executive directors and consultants of Zignago Vetro and its subsidiaries in relation to incentive stock option plans.

In H1 2023, 128,644 shares were purchased.

At 30 June 2023, the company therefore had in portfolio 589,998 treasury shares, corresponding to 0.661% of the share capital, purchased for Euro 4.83 million.

Operating performance

Following the significant growth of 2022, Beverage and Food container demand was sustained in the first half of 2023, while however normalising in the second quarter. This has allowed the Group companies to replenish inventory levels, which at the end of 2022 had fallen to very low levels.

Global Cosmetics and Perfumery markets demand generally remained strong across all segments, and particularly for the major cosmetic brands and Premium perfumery, driven both by the better quality levels demanded on the US and by growth on the Chinese market.

We consider the trend outlined above to reflect the normal short-term fluctuations that are a feature of the glass container market, which, moreover, continues to demonstrate great solidity. The market's medium to long-term growth characteristics and the strong prospects for the use of glass as a packaging material that is increasingly appreciated, both by users and consumers, remain absolutely unchanged. This fact demonstrates the greater focus and appreciation that public opinion reserves for this extraordinary material, as an excellent choice for packaging, in view of its singular characteristics of healthiness, sturdiness, conservation, recyclability and sustainability.

Consolidated revenues in the first half of 2023 amounted to Euro 384.8 million, up 28.4% on the same period in the previous year (Euro 299.6 million).

Materials and external services in H1 2023, including changes in inventories and internal production, amounted to Euro 207.4 million, compared to Euro 184.9 million in the first half of 2022 (+12.2%). These costs on revenues decreased from 61.7% to 53.9%.

The consolidated added value in the first half of 2023 was Euro 177.4 million, compared to Euro 114.7 million in the same period of the previous year (+54.6%). They accounted for 46.1% of revenues (compared to 38.3%).

Personnel expense in the first half of 2023 amounted to Euro 57 million compared to Euro 50.6 million in the first half of 2022 (+12.6%). The increase is related to wage cost movements. It accounted for 14.8% of revenues in H1 2023 (reducing on 16.9% in H1 2022).

Consolidated EBITDA in the first half year of 2023 was Euro 120.4 million compared to Euro 64.1 million in the same period of 2022 (+87.8%), a 31.3% revenue margin (21.4% in H1 2022).

Consolidated EBIT in H1 2023 totalled Euro 85.6 million, compared to Euro 34 million in the first half of 2022. The EBIT margin was 22.3% (11.4% in the first half of 2022).

The consolidated operating profit in the first half of 2023 increased on the same period in the previous year (respectively Euro 87.1 million and Euro 36.1 million). The revenue margin was 22.6% in the first half of 2023, compared to 12% in H1 2022.

The consolidated profit before tax for the period was Euro 83.2 million, compared to Euro 41.4 million in the same period of the previous year. The revenue margin was 21.6% in the first six months of 2023, compared to 13.8% in H1 2022.

The tax rate in the period was 10.1% compared to 24.6% in H1 2022.

The consolidated net profit in H1 2023 was Euro 74.6 million, compared to Euro 31.1 million in the same period of the previous year. The revenue margin was 19.4%, compared to 10.4% in 2022.

The cash flow generated from the profit and amortisation/depreciation in H1 2023 amounted to Euro 108.5 million, compared to Euro 47.8 million in the same period of the previous year (increasing Euro 60.7 million).

The key data of the Zignago Vetro Group reclassified consolidated income statement in H1 2023, compared with the same period of the previous year, according to management's view as described previously, are shown below.

	H1 2023	H1 2022			Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	384,760	100.0%	299,629	100.0%	28.4%
Changes in finished and semi-finished products and work in progress Internal production of fixed assets	10,493 1,220	2.7% 0.3%	(1,652) 1,833	(0.5)% 0.6%	n.a. (33.4)%
Value of production	396,473	103.0%	299,810	100.1%	32.2%
Cost of goods and services	(219,090)	(56.9)%	(185,080)	(61.8)%	18.4%
Value added	177,383	46.1%	114,730	38.3%	54.6%
Personnel expenses	(57,025)	(14.8)%	(50,629)	(16.9)%	12.6%
EBITDA	120,358	31.3%	64,101	21.4%	87.8%
Amortisation and depreciation Accruals to provisions	(33,880) (845)	(8.8)% (0.2)%	(29,624) (433)	(9.9)% (0.1)%	14.4% 95.2%
EBIT	85,633	22.3%	34,044	11.4%	151.5%
Net recurring non-operating income	1,497	0.3%	2,029	0.6%	(26.2)%
EBIT	87,130	22.6%	36,073	12.0%	141.5%
Net financial expense	(5,256)	(1.4)%	5,627	1.9%	n.a.
Net exchange rate gains/(losses)	1,371	0.4%	(278)	(0.1)%	n.a.
Profit before taxes	83,245	21.6%	41,422	13.8%	101.0%
Income taxes (Tax-rate 2023: 10.1%) (Tax-rate 2022: 24.6%)	(8,424)	(2.2)%	(10,180)	(3.3)%	(17.2)%
(Profit) Loss non-con. int.	(185)	(0.0)%	(154)	(0.1)%	20.1%
Group Profit for the period	74,636	19.4%	31,088	10.4%	140.1%

Consolidated net revenues for H1 2023 and 2022 were as follows:

(Euro thousands)	H1 2023	H1 2022	Change %
Zignago Vetro SpA	213,895	165,241	29.4%
Zignago Vetro Brosse S.a.s.	41,777	26,958	55.0%
Vetri Speciali SpA (*)	94,876	78,191	21.3%
Zignago Vetro Polska S.a.	48,172	36,068	33.6%
Zignago Glass USA Inc.	1,159	759	52.7%
Vetro Revet Srl	9,057	6,124	47.9%
Vetreco Srl (*)	6,586	4,406	49.5%
Julia Vitrum SpA (*)	6,458	3,610	78.9%
Italian Glass Moulds Srl	2,130	0	n.a.
Total aggregate	424,110	321,357	32.0%
Elimination of inter-company revenues	(39,350)	(21,728)	81.1%
Total consolidated	384,760	299,629	28.4%

Consolidated revenues by geographic segment outside of Italy for the first half of 2023 and 2022 were broken down as follows:

(Euro thousands)	H1 2023	H1 2022	Change %
E.U.	99,056	70,125	41.3%
Other countries	23,690	21,665	9.3%
Total	122,746	91,790	33.7%

Consolidated revenues outside Italy for the first half 2023 amounted to Euro 122.7 million, compared to Euro 91.8 million in the first half of 2022 (+33.7%) and account for 31.9% of total revenues (30.6% in the first half 2022). The breakdown by Company was as follows:

(Euro thousands)	H1 2023	H1 2022	Change %
Zignago Vetro SpA	36,050	29,250	23.2%
Zignago Vetro Brosse S.a.s.	38,639	24,639	56.8%
Zignago Vetro Polska S.a.	27,919	21,829	27.9%
Zignago Glass USA Inc.	1,071	505	112.1%
Italian Glass Moulds Srl	188	0	n.a.
Vetri Speciali SpA (*)	18,879	15,567	21.3%
Total	122,746	91,790	33.7%
% of total revenues	31.9%	30.6%

The contribution to the consolidated profit for the first half of 2023 and 2022 of each of the Companies included in the consolidation scope was as follows:

(Euro thousands)	H1 2023	H1 2022	Change %
Zignago Vetro SpA	56,613	26,483	113.8%
Zignago Vetro Brosse Sas	(370)	775	n.a.
Vetri Speciali SpA (*)	30,925	15,082	105.0%
Zignago Vetro Polska Sa	9,862	1,858	n.a.
Zignago Glass USA Inc.	58	132	(56.1)%
Vetro Revet Srl	377	315	19.7%
Vetreco Srl (*)	69	51	35.3%
Julia Vitrum Spa (*)	393	234	67.9%
Italian Glass Moulds Srl	(322)	0	n.a.
Total aggregate	97,605	44,930	117.2%
Consolidation adjustments	(22,969)	(13,842)	65.9%
Group Profit	74,636	31,088	140.1%

* For Group share

The consolidation adjustments relate principally to the elimination of the Vetri Speciali SpA dividends (Euro 22.6 million in 2023, Euro 13.7 million in 2022) and items concerning the proportional consolidation of the non-subsidiary companies (*).

The key data of the reclassified consolidated income statement of the Zignago Vetro Group in H1 2023, compared with the same period of the previous year, based on the application of international accounting standards, and therefore IFRS 11, are illustrated below.

	H1 2023		H1 2022		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	286,541	100.0%	219,804	100.0%	30.4%
Changes in finished and semi-finished products and work in progress	7,322	2.6%	(974)	(0.4)%	n.a.
Internal production of fixed assets	1,220	0.4%	1,833	0.8%	(33.4)%
Value of production	295,083	103.0%	220,663	100.4%	33.7%
Cost of goods and services	(168,519)	(58.8)%	(144,337)	(65.7)%	16.8%
Value added	126,564	44.2%	76,326	34.7%	65.8%
Personnel expense	(43,702)	(15.3)%	(38,140)	(17.4)%	14.6%
Equity-accounted Joint Ventures	31,387	11.0%	15,367	7.0%	104.2%
EBITDA	114,249	39.9%	53,553	24.3%	113.3%
Amortisation and depreciation	(27,999)	(9.8)%	(23,846)	(10.8)%	17.4%
Accruals to provisions	(187)	(0.1)%	(185)	(0.1)%	1.1%
EBIT Other income (charges)	86,063 883	30.0% 0.3%	29,522 1,490	13.4% 0.7%	191.5% (40.7)%
EBIT	86,946	30.3%	31,012	14.1%	180.4%
Net financial expense Net exchange rate gains/(losses)	(4,495) 1,355	(1.6)% 0.5%	5,881 (295)	2.7% (0.1)%	n.a. n.a.
Profit before taxes	83,806	29.2%	36,598	16.7%	129.0%
Income taxes	(8,985)	(3.1)%	(5,356)	(2.5)%	67.8%
(Tax-rate 2023: 10.7%) (Tax-rate 2022: 14.6%.)
(Profit) Loss non-con. int.	(185)	(0.1)%	(154)	(0.1)%	20.1%
Group Profit for the period	74,636	26.0%	31,088	14.1%	140.1%

For a better understanding of the performances for H1 2023, stated in accordance with management's view, a reconciliation is provided below of the reclassified income from joint ventures measured using the equity method and that utilising the proportional consolidation criteria, as adopted by the Group until 31 December 2013.

					Proportional consolidation
	2023 IAS/ IFRS	Vetri Speciali SpA	Vetreco Srl	Julia Vitrum Spa	Adjustment to Parent principles	Neutralisation JV using the equity criteria	2023 pre IFRS 11 (manage ment view)
	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.
Revenues	286,541	94,876	6,586	6,458	(9,701)	0	384,760
Changes in finished and semi finished products and work in progress Internal production of fixed	7,322	2,907	192	72	0	0	10,493
assets	1,220	0	0	0	0	0	1,220
Value of production	295,083	97,783	6,778	6,530	(9,701)	0	396,473
Cost of goods and services	(168,519)	(48,933)	(6,032)	(5,307)	9,701	0	(219,090)
Value added	126,564	48,850	746	1,223	0	0	177,383
Personnel expense	(43,702)	(12,798)	(248)	(277)	0	0	(57,025)
Equity-accounted
Joint Ventures	31,387	0	0	0	0	(31,387)	0
EBITDA	114,249	36,052	498	946	0	(31,387)	120,358
Amortisation and depreciation	(27,999)	(5,210)	(266)	(405)	0	0	(33,880)
Accruals to provisions	(187)	(658)	0	0	0	0	(845)
EBIT	86,063	30,184	232	541	0	(31,387)	85,633
Other income (charges)	883	479	0	135	0	0	1,497
EBIT	86,946	30,663	232	676	0	(31,387)	87,130
Net financial expense	(4,495)	(499)	(95)	(167)	0	0	(5,256)
Net exchange rate gains/(losses)	1,355	16	0	0	0	0	1,371
Profit before taxes	83,806	30,180	137	509	0	(31,387)	83,245
Income taxes	(8,985)	745	(68)	(116)	0	0	(8,424)
Consolidated profit	74,821	30,925	69	393	0	(31,387)	74,821
(Profit) loss non-con. int.	(185)	0	0	0	0	0	(185)
Group Profit	74,636	30,925	69	393	0	(31,387)	74,636

Statement of financial position

The reclassified statement of financial position of the Zignago Vetro Group at 30 June 2023, prepared according to management's view as described previously, is presented in condensed form and compared with 31 December and 30 June 2022.

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	182,069		172,721		148,031
Other receivables	30,131		38,742		24,398
Inventories	152,019		137,161		114,989
Current non-financial payables	(166,828)		(155,442)		(146,522)
Payables on fixed assets	(9,235)		(14,585)		(13,586)
A) Working capital	188,156	31.2%	178,597	29.6%	127,310	23.0%
Net tangible and intangible assets	371,448		381,332		378,233
Goodwill	53,437		53,402		53,400
Other equity investments and non-current	20,280		18,832		17,055
assets Non-current provisions and non-financial payables	(29,465)		(29,693)		(23,233)
B) Net fixed capital	415,700	68.8%	423,873	70.4%	425,455	77.0%
A+B= Net capital employed	603,856	100.0%	602,470	100.0%	552,765	100.0%
Financed by:
Current loans and borrowings	105,551		128,326		147,322
Cash and cash equivalents	(97,142)		(106,329)		(97,908)
Current net debt	8,409	1.3%	21,997	3.6%	49,414	8.9%
Non-current loans and borrowings	252,748	41.9%	262,000	43.5%	239,299	43.3%
C) Net financial debt	261,157	43.2%	283,997	47.1%	288,713	52.2%
Opening Group equity	317,950		261,296		261,296
Dividends paid	(53,261)		(35,497)		(35,497)
Other equity changes	2,666		5,555		6,783
Group Profit for the period	74,636		86,596		31,088
D) Closing equity	341,991	56.7%	317,950	52.8%	263,670	47.7%
E) Non-controlling interest equity	708	0.1%	523	0.1%	382	0.1%
D+E = Group Equity	342,699	56.8%	318,473	52.9%	264,052	47.8%
C+D+E = Total financial debt and equity	603,856	100.0%	602,470	100.0%	552,765	100.0%

Working capital at 30 June 2023 increased overall by Euro 9.6 million on 31 December 2022.

Trade receivables increased Euro 9.3 million, with inventories increasing Euro 14.9 million and other receivables decreasing Euro 8.6 million. Current non-financial payables increased Euro 11.4 million. Payables on fixed assets decreased by Euro 5.4 million.

Net fixed capital at 30 June 2023 decreased on 31 December 2022 by Euro 8.2 million. In particular, in the period investments (Euro 29 million), net of disposals, were lower than depreciation (Euro 33.9 million).

Capital expenditure in the first half of 2023 amounted to Euro 23.6 million (Euro 48.2 million in H1 2022) and concerns:

• Zignago Vetro SpA for Euro 7.9 million and relating to the replacement and maintenance of plant, machinery and equipment and for the purchase of moulds (Euro 43.3 million in the same period of 2022) and to the construction of a new production plant;
• Zignago Vetro Brosse SAS for Euro 2.1 million (Euro 1.7 million in the first half of 2022), principally for plant and industrial equipment, including moulds;
• Vetri Speciali SpA and its subsidiaries for Euro 8.4 million (Euro 2.7 million in H1 2022), mainly for buildings and the scheduled replacement of plant and equipment;
• Zignago Vetro Polska for Euro 2.1 million (net of the currency effect of Euro 2.1 million) for new plant, in addition to equipment and moulds (Euro 1.2 million in H1 2022 for plant upgrading);
• Raw glass treatment business unit: Euro 0.5 million for new plant and equipment.
• Italian Glass Moulds Srl Euro 0.5 million for new machinery and equipment.

At 30 June 2023, the Zignago Vetro Group had 2,784 employees. At 31 December 2022, they numbered 2,778. The employees of Vetri Speciali SpA and Vetreco have been fully incorporated.

The composition of Group personnel at 30 June 2023 is shown in the table below.

Composition	Executives	White-collars	Blue-collars
Workforce	32	573	2,179
Average age	53	41	42
Years of service in Group Companies	14	15	15

Consolidated equity amounted to Euro 342 million at 30 June 2023 (at 31 December 2022: Euro 318.0 million; at 30 June 2022: Euro 263.7 million). The increase on 31 December 2022 is principally due to the distribution of dividends (Euro -53.3 million), the profit for the period (Euro +74.6 million), the cash in from the exercise of options on shares (Euro +2.2 million) and other minor changes.

The consolidated net financial debt at 30 June 2023 was Euro 261.2 million (31 December 2022: Euro 284 million; at 30 June 2022: Euro 288.7 million).

The cash flow movements in the consolidated net financial debt at 30 June 2023 and at 31 December 2022 and 30 June 2020 were as follows:

(Euro thousands)	30 June 2023	31 December 2022	30 June 2022
Net financial debt at 1 January	(283,997)	(250,546)	(250,546)
Self-financing:
- Group profit for the period	74,636	86,596	31,088
- amortisation & depreciation	33,880	60,790	29,624
- net change in provisions	(228)	7,960	1,500
- net gains (losses) from sale of property, plant and
equipment	(40)	(392)	(405)
	108,248	154,954	61,807
(Increase)/decrease in working capital	(4,209)	(64,957)	(12,671)
Net investments in property, plant and equipment	(28,996)	(87,582)	(54,307)
Net investments in intangible assets	(35)	11	13
Decrease (increase) of other medium/long term assets	(1,448)	(3,021)	(1,244)
Sales prices of property, plant and equipment	40	2,456	2,425
	(34,648)	(153,093)	(65,784)
Free cash flow	73,600	1,861	(3,977)
Dividends distribution	(53,261)	(35,497)	(35,427)
Acquisition of equity investments	0	(125)	0
IFRS 16	(350)	(5,665)	(5,630)
Acquisition of treasury shares	(2,006)	(1,726)	0
Effect on equity of translation of foreign currency
financial statements and other changes	4,857	7,701	6,867
	(50,760)	(35,312)	(34,190)
Increase of net financial debt	22,840	(33,451)	(38,167)
Net debt at end of period	(261,157)	(283,997)	(288,713)

The reclassified statement of financial position of the Zignago Vetro Group at 30 June 2023, according to IFRS in force at 30 June 2023, including the effects from IFRS 11, as from 1 January 2014, compared with 31 December 2022 and 30 June 2022, is reported below:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	140,416		130,529		112,461
Other receivables	20,222		32,619		15,103
Inventories	121,839		112,443		94,397
Current non-financial payables	(125,998)		(117,965)		(110,612)
Payables on fixed assets	(7,421)		(13,091)		(13,016)
A) Working capital	149,058	26.9%	144,535	26.2%	98,333	20.2%
Net tangible and intangible assets	275,903		288,579		285,473
Goodwill	2,709		2,674		2,672
Equity investments measured using the
equity method	127,885		119,394		100,821
Other equity investments and non-current	13,642		12,411		10,018
assets Non-current provisions and
non-financial payables	(14,668)		(15,161)		(9,976)
B) Net fixed capital	405,471	73.1%	407,897	73.8%	389,008	79.8%
A+B= Net capital employed	554,529	100.0%	552,432	100.0%	487,341	100.0%
Financed by:
Current loans and borrowings	75,784		99,070		108,107
Cash and cash equivalents	(69,524)		(91,435)		(86,366)
Current net debt	6,260	1.1%	7,635	1.4%	21,741	4.5%
Non-current loans and borrowings	205,570	37.1%	226,324	41.0%	201,548	41.4%
C) Net financial debt	211,830	38.2%	233,959	42.4%	223,289	45.7%
Opening Group equity	317,950		261,296		261,296
Dividends paid	(53,261)		(35,497)		(35,427)
Other equity changes	2,666		5,555		6,713
Group Profit for the period	74,636		86,596		31,088
D) Closing equity	341,991	61.7%	317,950	57.5%	263,670	54.1%
E) Non-controlling interest equity	708	0.1%	523	0.1%	382	0.1%
D)+E) Group Equity	342,699	61.8%	318,473	57.6%	264,052	54.3%
C+D+E = Total financial debt and equity	554,529	100.0%	552,432	100.0%	487,341	100.0%

For a better understanding of the statement of financial position at 30 June 2023, stated in accordance with management's view, a reconciliation is provided below of the financial position of joint ventures measured using the equity method and that utilising the proportional consolidation method, as adopted by the Group until 31 December 2013.

			Proport. con
	30.06.2023 IAS/IFRS	Vetri Speciali SpA	Vetreco Srl	Julia Vitrum Spa	Adjustment to Parent principles	Neutralisation JV using the equity criteria	30.06.2023 pre-IFRS 11 (management view)
	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.	Euro thou.
Trade receivables	140,416	41,221	1,372	3,337	(4,277)	0	182,069
Other receivables	20,222	6,860	2,110	939	0	0	30,131
Inventories	121,839	28,780	861	539	0	0	152,019
Current non-financial payables	(125,998)	(38,058)	(3,883)	(3,166)	4,277	0	(166,828)
Payables on fixed assets	(7,421)	(1,814)	0	0	0	0	(9,235)
A) Working capital	149,058	36,989	460	1,649	0	0	188,156
Net tangible and intangible assets	275,903	79,723	4,827	10,995	0	0	371,448
Goodwill	2,709	50,728	0	0	0	0	53,437
Equity investments measured using the equity method	127,885	0	0	0	0	(127,885)	0
Other equity investments and non current assets	13,642	5,012	201	1,425	0	0	20,280
Non-current provisions and non financial payables	(14,668)	(13,510)	(25)	(1,262)	0	0	(29,465)
B) Net fixed capital	405,471	121,953	5,003	11,158	0	(127,885)	415,700
A+B= Net capital employed	554,529	158,942	5,463	12,807	0	(127,885)	603,856
Financed by:
Current loans and borrowings	75,784	27,870	223	1,674	0	0	105,551
Cash and cash equivalents	(69,524)	(27,154)	26	(490)	0	0	(97,142)
Current net debt	6,260	716	249	1,184	0	0	8,409
Non-current loans and borrowings	205,570	33,950	2,741	10,487	0	0	252,748
C) Net financial debt	211,830	34,666	2,990	11,671	0	0	261,157
Opening equity	317,950	116,247	2,404	743	0	(119,394)	317,950
Dividends	(53,261)	(22,640)	0	0	0	22,640	(53,261)
Other equity changes	2,666	(256)	0	0	0	256	2,666
Profit for the period	74,636	30,925	69	393	0	(31,387)	74,636
D) Closing equity	341,991	124,276	2,473	1,136	0	(127,885)	341,991
E) Non-controlling interest equity	708	0	0	0	0	0	708
D)+E) Group Equity	342,699	124,276	2,473	1,136	0	(127,885)	342,699
C+D+E = Total financial debt and equity	554,529	158,942	5,463	12,807	0	(127,885)	603,856

Research, development and advertising costs

The companies of the Group undertook research and development focused on plant, process and product innovation which resulted in, among other developments, the use of new materials, the introduction of new products and the application of new technical-production solutions for the "food and beverages", "cosmetics and perfumery" and "special containers" sectors.

The Parent also carried out research and development for the design and introduction of new information management systems, including improvements to the process IT set up, in order to create more efficient and effective operating instruments.

Therefore, the Company availed of the tax credit under Law 190/2014, establishing this amount according to the methodologies communicated in the Tax Agency Circular.

Environmental information

In the first half of 2023, the commitment of the Zignago Vetro Group continued in the protection of the environment with the continual improvement of the policies of territorial protection and management of environmental issues with actions aimed to reduce atmospheric emissions and energy consumption in the utilisation of natural resources and the optimisation of the production cycle, while remaining continually attentive to new and future technology developed internationally.

Risks related to personnel, safety and management

The Companies of the Zignago Vetro Group implement plant management policies to minimise the risk of accidents ensuring high levels of security in line with best industrial practices, utilising insurance to guarantee an extensive degree of protection for company structures, third party risks and interruptions in production activity. The company trains and motivates the workforce to guarantee efficiency and normal operational continuity.

Personal data security and protection

With regards to the obligations under Regulation (EU) 679/2016 (European General Data Protection ("GDPR")), the Group companies adopted the technical and organisational measures necessary to ensure the confidentiality and protection of processed data as set out in Article 32 of the Regulation.

Financial instruments: Group objectives & policies and description of risks

The main financial instruments used by the Zignago Vetro Group consist of trade receivables and payables, cash & cash equivalents, bank borrowing and interest rate swap contracts.

As regards the Group's financial management, the cash flow from operating activities are considered to be consistent with objectives for repayment of existing debt and such as to assure appropriate financial balance and adequate return on equity via dividend flows.

At 30 June 2023 the Zignago Vetro SpA Group had undertaken interest rate swaps in order to hedge the interest rate risk on non-current loans undertaken by the parent Zignago Vetro SpA and by Zignago Vetro Polska. At the same date, we also indicate that Zignago Vetro SpA had in place commodity swap contracts to hedge against fluctuations in energy factors and currency hedging contracts (USD) to hedge against currency fluctuation risks. The mark-to-market of these derivatives at 30 June 2023 were as follows (in Euro):

Company	Underlying	Notional	Maturity	Market
		at the		value at
		reporting date		30.06.2023
Zignago Vetro SpA	Loan hedges - IRS	154,199,437	Beyond 12 months	9,348,172
Zignago Vetro SpA	Loan hedges - IRS	6,318,907	Within 12 months	135,839
Zignago Vetro SpA	Commodity hedges	7,825,173	Within 12 months	(575,866)
Zignago Vetro SpA	Foreign currency hedges	1,991,139	Within 12 months	170,473
Zignago Vetro Polska	Loan hedges - IRS	1,680,120	Within 12 months	92,640
Zignago Vetro Polska	Foreign currency hedges	10,820,000	Within 12 months	413,794
Total		182,834,776		9,585,052

The above-mentioned transactions were undertaken for hedging purposes. However these transactions do not comply with all the requirements of IFRS to qualify for hedge accounting. For these transactions Zignago Vetro SpA does not use the so-called hedge accounting method and records the economic effects of hedging directly to profit or loss.

We consider that the Zignago Vetro Group is not exposed to credit risk any higher than the industry average, given that most receivables relate to customers of well-established commercial reliability and that receivables are insured. Allowance for impairment has in any case been made to cover against any residual credit risks. We specify that such allowances were made in the period and in previous periods against specific positions involved in procedures or with longer past-due status than the Group companies' average collection times. Collective allowances for impairment have also been made for potential bad debts.

In relation to the currency risk, we report that the Group generally, in accordance with the Group policy up to the present moment, did not undertake currency hedging instruments; the only exception is a currency forward contract in view of contingent and temporary requirements. Therefore, the Group remains exposed to the currency risk on the assets and liabilities in foreign currencies at period-end, which is not considered significant. A number of Group subsidiaries are located in countries not within the Eurozone: the United States and Poland. As the Group's functional currency is the Euro, the income statements of these companies are translated into Euro at the average exchange rate and, on like-for-like basis for revenues and profit in the local currency, changes in the exchange rate may impact the value in Euro of revenues, costs and profit (loss).

Zignago Vetro SpA is exposed to fluctuations in some commodity prices, in particular those relating to energy factors, such as oil, gas and electricity utilised in the production process. In order to neutralise the price effect, as these fluctuations may significantly impact production costs, the Company undertakes hedging operations through the use of derivative financial instruments.

The Group's present reference market does not include areas possibly requiring country-risk management. Commercial operations substantially take place in western countries, primarily in the Euro and USD areas.

* * *

Pursuant to the Bank of Italy/ Consob /Isvap document No. 2 of 6 February 2009 and IAS 1.25-26, it is considered, based on the Group`s strong profitability, solid financial position and in spite of the current economic environment - shaped by the Covid-19 pandemic and the Russia-Ukraine conflict - that there are no uncertainties or risks on the going concern of the business.

Reconciliation between the Zignago Vetro Group and the Parent Zignago Vetro SpA profit for the period and equity

The reconciliation between the profit for the period and equity at 30 June 2023 of the Parent and the Consolidated profit for the period and equity are summarised below:

(Euro thousands)

	Net Result H1 2023	Equity H1 2023
Financial statements of the Parent	56,613	189,941
Consolidation adjustments:
interests in joint ventures measured using equity method	31,387	101,006
reversal of inter-group dividends	(22,640)	0
reversal of inter-company Profit goodwill on acquisition of ZVP SA and adjustment to year-end	(154)	(350)
exchange rate	0	692
consolidation effect of the investee Vetro Revet	0	2,017
consolidation effect of the investee Italian Glass Moulds	0	0
IFRS 16	0	(1)
Loan ZVP	10	(81)
Carrying amount of equity investments:	8,603	103,283
Zignago Vetro Brosse SAS	0	(4,000)
Zignago Glass USA Inc.	0	(189)
Zignago Vetro Polska Sa	0	(10,327)
Vetro Revet Srl	0	(3,030)
Italian Glass Moulds Srl	0	(125)
	0	(17,671)
Profit/(loss) and equity of the subsidiaries:
Zignago Vetro Brosse SAS	(370)	18,560
Zignago Glass USA Inc.	58	(277)
Zignago Vetro Polska Sa	9,862	47,894
Vetro Revet Srl	377	737
Italian Glass Moulds Srl	(322)	(476)
	9,605	66,438
(Profit) loss non-con. int.	(185)	708
Consolidated Financial Statements	74,636	342,699

* * * *

It is considered that the information provided, together with the information illustrated below and relating to the performance of the individual companies, represents a true, balanced and exhaustive analysis of the situation of the Group and of the results of operations, overall and in the various sectors, in accordance with the size and complexity of the Group's business operations.

For greater clarity, the result of operations and statement of financial position of the parent and subsidiaries are presented according to the contribution of each of them to the Condensed Interim Consolidated Financial Statements. They are shown according to normal reporting practices.

THE COMPANY

ZIGNAGO VETRO SPA

Registered office: Fossalta di Portogruaro (Ve) Business sector: glass containers

In the second quarter of 2023, Beverage and Food container demand overall reported good levels, although with signs of weakening, particularly towards the end of the period, following the reduction in orders by operators, who preferred to reduce inventory levels. This enabled the Company to build up inventories, which had reached very low levels. Sales in the period were also affected by a number of productions for colour changes, which became necessary to rebuild adequate inventory levels.

Cosmetic and Perfumery container market demand continued however to be strong across all segments, resulting in a saturation of production capacity by all European manufacturers, with consequent low levels of inventory. Demand was driven by the major cosmetics and Premium perfumery brands, supported by a shift from the "mass market" segment to the "premium" segment in the US, and by Chinese market growth.

Against this backdrop, Zignago Vetro increased revenues by almost 30%, driven by rising sales prices, as a reaction to significant inflationary pressure on production costs, in particular raw materials, while volumes were shaped by lower orders than expected towards the end of the period.

The Zignago Vetro SpA reclassified income statement for the first half of 2023 compared to the same period of the previous year is presented below.

	H1 2023	H1 2022			Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	213,895	100.0%	165,241	100.0%	29.4%
Changes in finished and semi-finished
products and work in progress	10,070	4.7%	(4,889)	(2.9)%	n.a.
Internal production of fixed assets	152	0.1%	1,833	1.1%	(91.7)%
Value of production	224,117	104.8%	162,185	98.2%	38.2%
Cost of goods and services	(134,580)	(62.9)%	(112,930)	(68.4)%	19.2%
Value added	89,537	41.9%	49,255	29.8%	81.8%
Personnel expenses	(25,031)	(11.7)%	(22,627)	(13.7)%	10.6%
EBITDA	64,506	30.2%	26,628	16.1%	142.2%
Amortisation and depreciation	(20,479)	(9.6)%	(17,039)	(10.3)%	20.2%
Accruals to provisions	(120)	(0.1)%	(120)	(0.1)%	0
EBIT	43,907	20.5%	9,469	5.7%	363.7%
Other income (charges)	591	0.3%	1,425	0.9%	(58.5)%
EBIT	44,498	20.8%	10,894	6.6%	308.5%
Investment income	22,640	10.6%	13,685	8.3%	65.4%
Net financial expense	(3,865)	(1.8)%	6,225	3.8%	n.a.
Net exchange rate gains/(losses)	76	0	85	0	(10.6)%
Profit before taxes	63,349	29.6%	30,889	18.7%	105.1%
Income taxes	(6,736)	(3.1)%	(4,406)	(2.7)%	52.9%
(Tax-rate 2023: 10.6%)
(Tax-rate 2022: 14.3%)
Profit for the period	56,613	26.5%	26,483	16.0%	113.8%

Revenues in the first half of 2023 of Euro 213.9 million grew 29.4% on the first half of the previous year (Euro 165.2 million). Sales of glass containers amounted to Euro 208 million, up 32.4% (Euro 157 million in the first half of 2022).

Exports increased in H1 2023 by 27.9% on the first half of the previous year, accounting for 19.2% of containers and accessories revenues (19.4% in 2022).

Revenues by geographic area, excluding sundry materials and services:

(Euro thousands)	H1 2023	H1 2022	Change %
Italy	172,877	133,180	29.8%
EU Europe (Italy excluded)	31,851	25,186	26.5%
Other areas	9,167	6,875	33.3%
Total	213,895	165,241	29.4%
of which export	41,018	32,061	27.9%
%	19.2%	19.4%

Raw material and service costs on revenues, net of changes in inventories and internal production, in H1 2023 were 58.1% compared to 70.2% in H1 2022 – amounting to Euro 124.4 million in H1 2023 and Euro 116 million in the first half of 2022.

The added value was 41.9% of revenues in the first half of 2023 compared to 29.8% in the first half of 2022.

Personnel expense increased 10.6% in H1 2023 compared to the same period of 2022. It accounted for 11.7% of revenues in the first half of 2023 (13.7% in H1 2022).

EBITDA totalled Euro 64.5 million in H1 2023, compared to Euro 26.6 million in the first half of 2022, a margin of 30.2% (16.1% in 2022).

EBIT in the first half of 2023 increased on the previous year (Euro 43.9 million compared to Euro 9.5 million), reporting a margin of 20.5% on revenues (5.7% in H1 2022).

Investment income in the first half of 2023 amounting to Euro 22.6 million comprises Vetri Speciali SpA dividends (Euro 13.7 million in 2022).

Net financial expense in H1 2023 amounted to Euro 3.9 million, compared to net income of Euro 6.2 million in the previous year, principally due to the fair value measurement of interest rate derivatives, which in the first half of 2022 resulted in net financial income of Euro 6.4 million.

The profit before taxes in H1 2023 was Euro 63.3 million, compared to Euro 30.9 million in H1 2022 (+Euro 32.5 million). The margin was 29.6%, compared to 18.7%.

The tax rate in the period, taking account of the largely exempt investment income in the separate financial statements of Zignago Vetro, was 10.6%, compared to 14.3% in H1 2022. The net profit in H1 2023 amounted to Euro 56.6 million, compared to Euro 26.5 million in the first half of 2022.

The cash flow generated from the profit for the period and amortisation/depreciation in the first half of the year amounted to Euro 77.1 million, compared to Euro 43.5 million in the first half of 2022 (Euro +33.6 million, +77.1%).

The reclassified statement of financial position of Zignago Vetro SpA at 30 June 2023 and 31 December 2022 and 30 June 2022 was as follows:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	114,112		108,382		93,067
Other receivables	13,086		27,001		11,319
Inventories	87,232		75,375		60,777
Current non-financial payables	(104,436)		(94,646)		(91,297)
Payables on fixed assets	(5,827)		(10,279)		(11,997)
A) Working capital	104,167	30.0%	105,833	29.3%	61,869	19.3%
Net tangible and intangible assets	203,158		215,355		214,617
Investments	44,550		44,550		44,425
Other equity investments and non-current	7,037		8,005		6,579
assets Non-current provisions and non-financial payables	(11,594)		(12,246)		(7,669)
B) Net fixed capital	243,151	70.0%	255,664	70.7%	257,952	80.7%
A+B= Net capital employed	347,318	100.0%	361,497	100.0%	319,821	100.0%
Financed by:
Current loans and borrowings	71,139		87,630		97,225
Cash and cash equivalents	(110,423)		(129,704)		(121,994)
Current net debt	(39,284) (11.3)%			(42,074) (11.6)%	(24,769)	(7.8)%
Non-current loans and borrowings	196,661	56.6%	217,469	60.1%	194,363	60.8%
C) Net financial debt	157,377	45.3%	175,395	48.5%	169,594	53.0%
Opening equity	186,102		152,807		152,807
Dividends paid	(53,261)		(35,427)		(35,427)
Profit for the period	56,613		62,383		26,483
Other changes	487		6,339		6,364
D) Closing equity	189,941	54.7%	186,102	51.5%	150,227	47.0%
C+D = Total Financial Debt and
Equity	347,318	100.0%	361,497	100.0%	319,821	100.0%

Working capital at 30 June 2023 decreased on 31 December 2022 by Euro 1.7 million (-1.6%). Trade receivables increased Euro 5.7 million on 31 December 2022, due to increased sales in the second quarter, with other receivables decreasing Euro 13.9 million, while inventories increased Euro 11.9 million compared to 31 December 2022. Current non-financial payables increased Euro 9.8 million compared to 31 December 2022, while fixed asset payables decreased Euro 4.5 million.

Net fixed capital at 30 June 2023 was Euro 12.5 million lower than 31 December 2022, mainly due to lower net investments (overall Euro 7.9 million) than amortisation and depreciation in the period (Euro 20.5 million).

The net capital employed at 30 June 2023 decreased by Euro 14.2 million compared to 31 December 2022.

Equity at 30 June 2023 increased on 31 December 2022 by Euro 3.8 million, mainly following the distribution of dividends for Euro 53.3 million, which was lower than the profit for the period of Euro 56.6 million and the cash in from the exercise of options on shares (Euro +2.3 million). In addition, we indicate the reduction in equity of Euro 2 million following the purchase of treasury shares, as outlined in the specific section of this report.

The net financial debt at 30 June 2023 was Euro 157.4 million, decreasing Euro 18 million on 31 December 2022. It includes approx. Euro 15.8 million for financial liabilities regarding leases according to the new IFRS 16 standard.

Employees of the Company at 30 June 2023 numbered 735, broken down as follows: 13 executives, 164 white-collar and 558 blue-collar.

At 31 December 2022, employees numbered 734: 13 executives, 163 white-collar and 558 blue-collar. At 30 June 2022, there were 721 employees, of which: 12 executives, 157 white-collar and 552 blue-collar.

Based on the available information and data, we expect Beverage and Food container orders by operators to gradually normalise over the coming months, partly due to the retail system's need to replenish inventories.

In the second half of the year, the Cosmetics and Perfumery container market is expected to remain dynamic, with demand at good levels, driven by the Premium segment and branded products.

The gradual normalisation of the cost of most inputs - particularly energy - may also lead to reviewed sales prices, with this process already partially underway. It is also expected that the cost of raw materials, in particular raw glass, which has not yet been impacted by price reductions, shall also decrease during the second half of the year. The second half margin shall however be affected by all these factors and is expected to remain at positive and unaltered levels.

THE CONSOLIDATED COMPANIES

Zignago Vetro Brosse SAS

Registered office: Vieux-Rouen-sur-Bresle (France) Business sector: glass bottles for luxury fragrances

Chairperson: Roberto Cardini General Manager: Celine Riviere

"Comité de Direction" Roberto Celot

Nicolò Marzotto Michele Pezza Sergio Pregliasco Giovanni Puri Purini

Luxury Cosmetic and Perfumery container demand was sustained in the first half of 2023, with end manufacturers forecasting higher sales than 2022, driven by the sell-out.

New launches appeared to decline in the second quarter due to a lack of production capacity, with the major brands therefore preferring to focus on recurring products.

The Caraffes market for luxury alcohol returned to pre-pandemic levels, also as a result of the recovery of the Chinese market.

The reclassified consolidated income statement of Zignago Vetro Brosse in H1 2023 compared to the same period of the previous year is shown below:

	H1 2023	H1 2022			Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	41,777	100.0%	26,958	100.0%	55.0%
Changes in finished and semi-finished
products and work in progress	(3,703)	(8.9)%	3,143	11.7%	n.a.
Value of production	38,074	91.1%	30,101	111.7%	26.5%
Cost of goods and services	(26,183)	(62.7)%	(17,807)	(66.1)%	47.0%
Value added	11,891	28.4%	12,294	45.6%	(3.3)%
Personnel expenses	(9,372)	(22.4)%	(8,619)	(32.0)%	8.7%
EBITDA	2,519	6.0%	3,675	13.6%	(31.5)%
Amortisation and depreciation	(2,722)	(6.5)%	(2,364)	(8.8)%	15.1%
Accruals to provisions	(33)	(0.1)%	(4)	---	n.a.
EBIT	(236)	(0.6)%	1,307	4.8%	n.a.
Net recurring non-operating income (charges)	3	---	0	0	n.a.
EBIT	(233)	(0.6)%	1,307	4.8%	n.a.
Net financial expenses	(281)	(0.7)%	(72)	(0.2)%	n.a.
Net exchange rate gains/(losses)	23	0.1%	0	0	---
Profit/(loss) before taxes	(491)	(1.2)%	1,235	4.6%	n.a.
Income taxes	121	0.3%	(460)	(1.7)%	n.a.
Profit/(loss) for the period	(370)	(0.9)%	775	2.9%	n.a.

Revenues in the first half of 2023 of Euro 42 million, up 55% on the same period of the previous year (Euro 27 million), in accordance with that described previously.

Revenues by geographic segment:

(Euro thousands)	H1 2023	H1 2022	Change %
Italy	2,921	2,292	27.4%
Europe (excluding Italy)	35,051	20,366	72.1%
Other countries	3,805	4,300	(11.5)%
Total	41,777	26,958	55.0%

Material costs and external services, including inventory changes, in the first half of 2023 were 71.5% of revenue, compared to 54.4% in the first half of 2022.

Personnel expenses in the first half of 2023 accounted for 22.4% of revenue, compared to 32% in the same period of 2022.

EBITDA in the first half of 2023 was Euro 2.5 million, compared to Euro 3.7 million in the same period of 2022. The margin was 6%, compared to 13.6%.

EBIT in H1 2023 was a loss of Euro 0.2 million (Euro 1.3 million in the first half of the previous year).

The result before taxes in H1 2023 was a loss of Euro 0.5 million (profit of Euro 1.2 million in the first half of 2022).

The net result in the period was a loss of Euro 0.4 million (profit of Euro 0.8 million in H1 2022).

The cash flow generated from the result for the period and amortisation/depreciation in the first half of 2023 and 2022 amounted to Euro 2.4 million and Euro 3.1 million respectively.

The reclassified statement of financial position of Zignago Vetro Brosse at 30 June 2023 and 31 December and 30 June 2022 was as follows:

	30.06.2023	31.12.2022			30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	19,917		15,559		12,281
Other receivables	3,054		1,681		1,644
Inventories	17,148		21,342		22,030
Current non-financial payables	(16,057)		(14,885)		(13,568)
Payables on fixed assets	(1,115)		(1,773)		(925)
A) Working capital	22,947	58.0%	21,924	55.9%	21,462	52.3%
Net tangible and intangible assets	16,141		16,771		20,900
Non fully consolidated eq. investments & other medium/long term assets	1,986		1,803		328
Non-current provisions and non-financial payables	(1,496)		(1,289)		(1,627)
B) Net fixed capital	16,631	42.0%	17,285	44.1%	19,601	47.7%
A+B= Net capital employed	39,578	100.0%	39,209	100.0%	41,063	100.0%
Financed by:
Current loans and borrowings	1,250		11,004		7,408
Cash and cash equivalents	(232)		(1,438)		(1,550)
Current net debt	1,018	2.6%	9,566	24.4%	5,858	14.2%
Non-current loans and borrowings	20,000	50.5%	10,750	27.4%	12,884	31.4%
C) Net financial debt	21,018	53.1%	20,316	51.8%	18,742	45.6%
Opening equity	18,893		21,546		21,546
Other equity changes	37		(157)		0
Profit/(loss) for the period	(370)		(2,496)		775
D) Closing equity	18,560	46.9%	18,893	48.2%	22,321	54.4%
C+D = Total financial debt
& equity	39,578	100.0%	39,209	100.0%	41,063	100.0%

Working capital at 30 June 2023 increased Euro 1 million compared to 31 December 2022 (Euro 4.4 million increase in trade receivables, Euro 1.4 million increase in other receivables, Euro 4.2 million decrease in inventories, Euro 1.2 million increase in non-financial payables and decrease in fixed asset payables of Euro 0.7 million).

Net fixed capital at 30 June 2023 decreased on 31 December 2022 by Euro 0.7 million, owing principally to investments (Euro 2.1 million) lower than amortisation/depreciation (Euro 2.7 million) and to the reclassification of some taxes to current assets.

The net financial debt amounted to Euro 21 million at 30 June 2023 (Euro 20.3 million at 31 December 2022 and Euro 18.7 million at 30 June 2022).

At 30 June 2023, there were 329 employees (at 31 December and 30 June 2022 respectively 327 and 325 employees).

Luxury Perfumery container demand in the second half of the year is expected to remain at the same levels as in the first half of the year.

The luxury Caraffes market is forecast to remain stable and at good levels.

Zignago Vetro Polska S.A.

Registered office: Trabkj (Poland) Business sector: glass containers

Chairperson: Roberto Cardini

"Management Board": Paolo Pacini - General Manager Roberto Celot Nicolò Marzotto Stefano Marzotto Michele Pezza Sergio Pregliasco Giovanni Puri Purini

"Supervisory Board": Paolo Nicolai - chairperson Stefano Perosa Carlo Pesce

In the first half of 2023, Cosmetic and Perfumery market demand remained strong, driven by the main brands and the perfumery market, which are seeking new production capacity. The Aircare segment however saw slowing demand, impacted by high stock levels.

The European Beverages and Food market however indicated signs of slowdown towards the end of the period, due to reduced orders by manufacturers, with a view to keeping inventory levels low, particularly among distributors.

The Zignago Vetro Polska SA reclassified income statement for the first half of 2023 compared to the same period of the previous year is shown below:

	H1 2023		H1 2022		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	48,172	100.0%	36,068	100.0%	33.6%
Change in finished and semi-finished products and work in progress	925	1.9%	604	1.7%	53.1%
Internal production of fixed assets	0	0	0	0	n.a.
Value of production	49,097	101.9%	36,672	101.7%	33.9%
Cost of goods and services	(26,463)	(54.9)%	(23,537)	(65.3)%	12.4%
Value added	22,634	47.0%	13,135	36.4%	72.3%
Personnel expenses	(7,385)	(15.3)%	(5,936)	(16.5)%	24.4%
EBITDA	15,249	31.7%	7,199	19.9%	111.8%
Amortisation and depreciation	(3,965)	(8.2)%	(4,199)	(11.6)%	(5.6)%
Accruals to provisions	(22)	(0.1)%	(52)	(0.1)%	(57.7)%
EBIT	11,262	23.4%	2,948	8.2%	282.0%
Net recurring non-operating income (charges)	143	0.3%	10	---	n.a.
EBIT	11,405	23.7%	2,958	8.2%	285.6%
Net financial expenses	(177)	(0.4)%	(225)	(0.6)%	(21.3)%
Net exchange rate gains/(losses)	1,256	2.6%	(391)	(1.1)%	n.a.
Profit before taxes	12,484	25.9%	2,342	6.5%	433.0%
Income taxes	(2,622)	(5.4)%	(484)	(1.3)%	441.7%
Profit for the period	9,862	20.5%	1,858	5.2%	430.8%

Revenues in H1 2023 totalled Euro 48.2 million, compared to Euro 36.1 million in H1 2022 (+33.6%).

Revenues include, in addition to glass containers, also decoration services and the contribution charged to clients for the creation of moulds for specific products and other services.

Revenue by region

(Euro thousands)	H1 2023	H1 2022	Change %
Italy	19,912	14,032	41.9%
Europe (excluding Italy)	23,970	17,972	33.4%
Other countries	4,290	4,064	5.6%
Total	48,172	36,068	33.6%

Materials and external services, including changes in inventories and internal production of fixed assets, amounted in the first six months of 2023 to Euro 25.5 million – 53% of revenues (Euro 22.9 million and 63.6% in H1 2022).

Personnel expense amounted to Euro 7.4 million and accounted for 15.3% of revenues (Euro 5.9 million also in 2022 and 16.5%).

EBITDA in H1 2023 amounted to Euro 15.2 million - 31.7% revenue margin (Euro 7.2 million in the same period of the previous year - 19.9% revenue margin).

EBIT totalled Euro 11.3 million in H1 2023, compared to Euro 2.9 million in H1 2022, with a 23.4% revenue margin, compared to 8.2% in the previous year.

The profit before taxes in H1 2023 was Euro 12.5 million. In the same period of 2022, it amounted to Euro 2.3 million.

The first half of 2023 reported a net profit of Euro 9.9 million, compared to Euro 1.9 million in H1 2022.

The cash flow generated by the profit for the period and amortisation/depreciation amounted to Euro 13.8 million, 28.7% of revenues (in H1 2022 Euro 6.1 million, 16.8% of revenues).

The reclassified statement of financial position of Zignago Vetro Polska SA at 30 June 2023 and 31 December 2022 and 30 June 2022 was as follows:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	19,016		13,725		12,744
Other receivables	1,467		983		758
Inventories	16,991		15,370		11,323
Current non-financial payables	(17,358)		(13,779)		(11,022)
Payables on fixed assets	(329)		(1,039)		(94)
A) Working capital	19,787	30.2%	15,260	25.9%	13,709	23.0%
Net tangible and intangible assets	42,063		41,809		43,175
Non fully consolidated eq. investments & other medium/long term assets	4,027		2,197		3,066
Non-current provisions and non-financial payables	(310)		(442)		(408)
B) Net fixed capital	45,780	69.8%	43,564	74.1%	45,833	77.0%
A+B= Net capital employed	65,567	100.0%	58,824	100.0%	59,542	100.0%
Financed by:
Current loans and borrowings	5,710		5,988		6,017
Cash and cash equivalents	(9,978)		(7,353)		(5,872)
Current net debt	(4,268)	(6.5)%	(1,365)	(2.3)%	145	0.2%
Non-current loans and borrowings	21,941	33.5%	24,515	41.7%	26,897	45.2%
C) Net financial debt (funds)	17,673	27.0%	23,150	39.4%	27,042	45.4%
Opening equity	35,674		31,286		31,286
Other equity changes	2,358		(554)		(644)
Profit for the period	9,862		4,942		1,858
D) Closing equity	47,894	73.0%	35,674	60.6%	32,500	54.6%
C+D = Total financial debt/(funds) and equity	65,567	100.0%	58,824	100.0%	59,542	100.0%

The working capital at 30 June 2023 increased Euro 4.5 million on 31 December 2022.

Net fixed capital amounted to Euro 45.8 million at 30 June 2023, increasing Euro 2.2 million on 31 December 2022, principally due to the currency effect on fixed assets, against amortisation/depreciation (Euro 4 million) higher than investments (Euro 2.1 million) and due to the increased value of non-fully consolidated equity investments and of other medium/long-term assets.

The debt at 30 June 2023 was Euro 17.7 million, while at 31 December 2022 and 30 June 2022 respectively was Euro 23.2 million and Euro 27 million.

At 30 June 2023 employees numbered 592, while at 31 December and 30 June 2022 respectively 590 and 640.

Based on the available information, Cosmetic and Perfumery market demand in the second half of the year is expected to remain at good levels, driven by the major brands.

For the Beverages and Food segment however, the weak demand seen over recent months is expected to continue, with a gradual recovery in the second half of the year.

Vetri Speciali SpA

Registered office: Trento – Via Manci, 5 Business sector: specialty glass containers

Chairperson: Stefano Marzotto Vice Chairperson: Vitaliano Torno Chief Executive Officer: Osvaldo Camarin Directors: Luca Marzotto Massimo Noviello Statutory Auditors: Lorenzo Buraggi - Chairperson Carlo Pesce

Marco Finetti

In the second quarter, special glass container demand remained at good levels, although amid signs of slowdown, in line with the broader beverage container market.

This was due to the possible softening of consumption on the one hand, while on the other due to the temporary slowdowns in orders, due to the reduction in inventory throughout the chain.

The reclassified income statement of Vetri Speciali SpA for H1 2023 compared to the same period of the previous year, for the share pertaining to Zignago Vetro SpA (50%), is summarised below:

	H1 2023		H1 2022		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	94,876	100.0%	78,191	100.0%	21.3%
Changes in finished and semi-finished products and work in progress	2,907	3.1%	(1,186)	(1.5)%	n.a.
Value of production	97,783	103.1%	77,005	98.5%	27.0%
Cost of goods and services	(48,933)	(51.6)%	(40,122)	(51.3)%	22.0%
Value added	48,850	51.5%	36,883	47.2%	32.4%
Personnel expenses	(12,798)	(13.5)%	(11,996)	(15.4)%	6.7%
EBITDA	36,052	38.0%	24,887	31.8%	44.9%
Amortisation and depreciation	(5,210)	(5.5)%	(5,118)	(6.5)%	1.8%
Accruals to provisions	(658)	(0.7)%	(248)	(0.3)%	165.3%
EBIT	30,184	31.8%	19,521	25.0%	54.6%
Net recurring non-operating income	479	0.5%	500	0.6%	(4.2)%
EBIT	30,663	32.3%	20,021	25.6%	53.2%
Net financial expense	(499)	(0.5)%	(171)	(0.2)%	191.8%
Net exchange rate gains/(losses)	16	0	17	0	(5.9)%
Profit before taxes	30,180	31.8%	19,867	25.4%	51.9%
Income taxes	745	0.8%	(4,785)	(6.1)%	(115.6)%
(Tax-rate 2023: n.a.)
(Tax-rate 2022: 24.1%)
Profit for the period	30,925	32.6%	15,082	19.3%	105.0%

The share of revenues in the first half of 2023 amounted to Euro 94.9 million, an increase of 21.3% compared to Euro 78.2 million in the first half of the previous year.

Exports accounted for 20.9% of revenues (19.9% in the same period of 2022).

Revenues by geographic segment:

(Euro thousands)	H1 2023	H1 2022	%
Italy	75,038	62,624	19.8%
Europe (excluding Italy)	13,752	9,487	45.0%
Other areas	6,086	6,080	0.1%
Total	94,876	78,191	21.3%
of which export	19,838	15,567	27.4%
%	20.9%	19.9%

The share of material costs and external services in the first half of 2023, including the changes in the share of inventory, account for 48.5% of revenues compared to 52.8% in the first half of 2022.

The share of personnel expenses in H1 2023 compared to the same period in 2022 increased by 6.7%, due to wage movements.

The share of EBITDA amounted to Euro 36.1 million in H1 2023, an increase of 44.9% compared to the same period of 2022 (Euro 24.9 million), and a margin of 38% on revenues (31.8% in H1 2022).

The share of EBIT in the period was Euro 30.1 million, up 54.6% (Euro 19.5 million in H1 2022), with a margin of 31.8% compared to 25%.

The profit before taxes amounted to Euro 30.2 million in the first half of 2023, up on Euro 19.9 million in the first half of 2022 and with a margin of 31.8% compared to 25.4%.

The tax rate in the first six months of 2023 was 2.5%, compared to 24.1% in H1 2022.

The profit in H1 2023 amounted to Euro 30.9 million, compared to Euro 15.1 million in the first half of 2022, with a H1 2023 margin of 32.6% (19.3% in H1 2022).

The cash flow generated from the profit for the period and amortisation/depreciation in the first half of the year amounted to Euro 36.1 million, compared to Euro 20.2 million in the same period of 2022.

The reclassified statement of financial position of Vetri Speciali SpA at 30 June 2023 and 31 December and 30 June 2022, for the share pertaining to Zignago Vetro SpA (50%), was as follows:

	30.06.2023	31.12.2022			30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	41,221		40,635		34,202
Other receivables	6,860		3,483		7,050
Inventories	28,780		23,476		18,698
Current non-financial payables	(38,058)		(34,213)		(32,382)
Payables on fixed assets	(1,814)		(1,494)		(570)
A) Working capital	36,989	23.3%	31,887	21.2%	26,998	18.3%
Net tangible and intangible assets	79,723		76,521		75,992
Goodwill	50,728		50,728		50,728
Other equity investments and non-current	5,012		4,862		5,764
assets Non-current provisions and non-financial
payables	(13,510)		(13,270)		(12,070)
B) Net fixed capital	121,953	76.7%	118,841	78.8%	120,414	81.7%
A+B= Net capital employed	158,942	100.0%	150,728	100.0%	147,412	100.0%
Financed by:
Current loans and borrowings	27,870		25,895		35,549
Cash and cash equivalents	(27,154)		(13,797)		(11,384)
Current net debt	716	0.4%	12,098	8.0%	24,165	16.4%
Non-current loans and borrowings	33,950	21.4%	22,383	14.9%	25,388	17.2%
C) Net financial debt	34,666	21.8%	34,481	22.9%	49,553	33.6%
Opening equity	116,247		95,411		95,411
Dividends	(22,640)		(13,755)		(13,685)
Other equity changes	(256)		(8)		1,051
Profit for the period	30,925		34,599		15,082
D) Closing equity	124,276	78.2%	116,247	77.1%	97,859	66.4%
C+D = Total financial debt and equity	158,942	100.0%	150,728	100.0%	147,412	100.0%

The portion of trade receivables at 30 June 2023 increased Euro 0.6 million on 31 December 2022 and Euro 7 million on 30 June 2022.

The share of inventories at 30 June 2023 increased Euro 5.3 million compared to 31 December 2022 and Euro 10.1 million compared to 30 June 2022.

The share of net fixed capital of Euro 122 million at 30 June 2023 was Euro 3.1 million higher than at 31 December 2022 and Euro 1.5 million higher than 30 June 2022, due to greater capital expenditure (Euro 8.4 million) than depreciation (Euro 5.2 million).

The share of debt at 30 June 2023 amounted to Euro 34.7 million, an increase of Euro 0.2 million on 31 December 2022 and decreasing Euro 14.9 million on 30 June 2022. During the period the portion of dividends paid was Euro 22.6 million (Euro 13.7 million in 2022).

At 30 June 2023 employees numbered 892 (100% of the data), while at 31 December and 30 June 2022 respectively 895 and 886.

The situation is expected to stabilise over the coming months, with a consequent recovery in consumption.

* * *

For completeness the reclassified consolidated income statement and statement of financial position of Vetri Speciali SpA (100% of the relative data) are presented below.

The reclassified consolidated income statement of Vetri Speciali SpA (100% of the data) for H1 2023 and H1 2022 is shown below:

	H1 2023		H1 2022
	Euro thou.	%	Euro thou.	%	%
Revenues	189,752	100.0%	156,381	100.0%	21.3%
Changes in finished and semi-finished products and work in progress	5,813	3.1%	(2,372)	(1.5)%	n.a.
Value of production	195,565	103.1%	154,009	98.5%	27.0%
Cost of goods and services	(97,865)	(51.6)%	(80,243)	(51.3)%	22.0%
Value added	97,700	51.5%	73,766	47.2%	32.4%
Personnel expenses	(25,596)	(13.5)%	(23,991)	(15.4)%	6.7%
EBITDA	72,104	38.0%	49,775	31.8%	44.9%
Amortisation and depreciation	(10,420)	(5.5)%	(10,236)	(6.5)%	1.8%
Accruals to provisions	(1,315)	(0.7)%	(495)	(0.3)%	165.7%
EBIT	60,369	31.8%	39,044	25.0%	54.6%
Net recurring non-operating income	957	0.5%	1,000	0.6%	(4.3)%
Operating Profit	61,326	32.3%	40,044	25.6%	53.1%
Net financial expense	(999)	(0.5)%	(343)	(0.2)%	191.3%
Net exchange rate gains/(losses)	31	0	33	0	(6.1)%
Profit before taxes	60,358	31.8%	39,734	25.4%	51.9%
Income taxes	1,490	0.8%	(9,574)	(6.1)%	(115.6)%
(Tax-rate 2023: n.a.)
(Tax-rate 2022: 24.1%) Profit for the period	61,848	32.6%	30,160	19.3%	105.1%

The reclassified consolidated statement of financial position of Vetri Speciali SpA (100% of the data) at 30 June 2023, 31 December 2022 and 30 June 2022 is summarised below:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	82,445		81,274		68,406
Other receivables	13,719		6,966		14,100
Inventories	57,559		46,952		37,396
Current non-financial payables	(76,115)		(68,426)		(64,764)
Payables on fixed assets	(3,627)		(2,987)		(1,140)
A) Working capital	73,981	23.3%	63,779	21.2%	53,998	18.3%
Net tangible and intangible assets	159,446		153,041		151,984
Goodwill	101,455		101,455		101,455
Other equity investments and non-current	10,023		9,724		11,527
assets Non-current provisions	(27,020)		(26,540)		(24,140)
and non-financial payables	243,904	76.7%	237,680	78.8%	240,826	81.7%
B) Net fixed capital	317,885	100.0%	301,459	100.0%	294,824	100.0%
A+B= Net capital employed
Financed by:	55,739		51,789		71,098
Current loans and borrowings	(54,307)		(27,594)		(22,768)
Cash and cash equivalents	1,432	0.4%	24,195	8.0%	48,330	16.4%
Current net debt	67,899	21.4%	44,766	14.9%	50,776	17.2%
Non-current loans and borrowings	69,331	21.8%	68,961	22.9%	99,106	33.6%
C) Net financial debt
Opening equity	232,498		190,826		190,826
Dividends	(45,281)		(27,510)		(27,370)
Other equity changes	(511)		(16)		2,102
Profit for the period	61,848		69,198		30,160
D) Closing equity	248,554	78.2%	232,498	77.1%	195,718	66.4%
C+D = Total financial debt and equity	317,885	100.0%	301,459	100.0%	294,824	100.0%

Raw glass treatment Business Unit

Companies included in the scope: Vetro Revet Srl (100%), Julia Vitrum Spa (40%), Vetreco Srl (30%)

In the first half of 2023, the Companies operating in this Business Unit reduced the amount of processed glass as a result of a reduction in the incoming flow of raw glass, due in particular to the sharp increase in its average procurement costs.

These costs, in fact, continued to rise also in the second quarter, affected also by the speculative environment emerging in the preceding quarters, in particular among certain operators.

A number of signs indicating an easing of these costs however emerged towards the end of the period.

The reclassified aggregate income statement of the Business Unit for H1 2023 and 2022 is reported below:

	H1 2023		H1 2022		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	22,101	100.0%	14,140	100.0%	56.3%
Changes in finished and semi-finished products and work in progress	538	2.4%	722	5.1%	(25.5)%
Value of production	22,639	102.4%	14,862	105.1%	52.3%
Cost of goods and services	(19,300)	(87.3)%	(12,055)	(85.2)%	60.1%
Value added	3,339	15.1%	2,807	19.9%	19.0%
Personnel expenses	(1,294)	(5.8)%	(1,230)	(8.7)%	5.2%
EBITDA	2,045	9.3%	1,577	11.2%	29.7%
Amortisation and depreciation	(912)	(4.1)%	(898)	(6.4)%	1.6%
Accruals to provisions	(12)	(0.1)%	(9)	(0.1)%	33.3%
EBIT	1,121	5.1%	670	4.7%	67.3%
Net recurring non-operating income (charges)	268	1.2%	94	0.7%	185.1%
Operating Profit	1,389	6.3%	764	5.4%	81.8%
Net financial expense	(358)	(1.7)%	(113)	(0.8)%	216.8%
Profit before taxes	1,031	4.6%	651	4.6%	58.4%
Income taxes	(192)	(0.9)%	(51)	(0.4)%	276.5%
(Tax-rate 2023: 18.6%)
(Tax-rate 2022: 7.8%)
Profit for the period	839	3.8%	600	4.2%	39.8%

In the first half of the year, the Business Unit reported revenues of Euro 22.1 million, principally concerning the sale of raw glass for furnaces, raw glass third party processing and metal waste sales.

The reclassified statement of financial position of the Business Unit at 30 June 2023 and 31 December and 30 June 2022 was as follows:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	9,273		9,439		8,200
Other receivables	4,429		4,062		3,427
Inventories	1,794		1,361		2,239
Current non-financial payables	(12,079)		(11,535)		(10,658)
Payables on fixed assets	0		0		0
A) Working capital	3,417	12.7%	3,327	12.2%	3,208	11.6%
Net tangible and intangible assets	23,490		23,907		24,592
Other equity investments and non-current	1,649		1,582		1,296
assets Non-current provisions and non-financial payables	(1,626)		(1,566)		(1,459)
B) Net fixed capital	23,513	87.3%	23,923	87.8%	24,429	88.4%
A+B= Net capital employed	26,930	100.0%	27,250	100.0%	27,637	100.0%
Financed by:
Current loans and borrowings	6,088		7,755		8,190
Cash and cash equivalents	(1,095)		(1,668)		(800)
Current net debt	4,993		6,087		7,390
Non-current loans and borrowings	16,141		16,206		15,763
C) Net financial debt	21,134	78.5%	22,293	81.8%	23,153	83.8%
Opening equity	4,957		3,884		3,884
Net result	839		1,073		600
D) Closing equity	5,796	21.5%	4,957	18.2%	4,484	16.2%
C+D = Total financial debt and equity	26,930	100.0%	27,250	100.0%	27,637	100.0%

Working capital amounted to Euro 3.4 million, increasing Euro 0.1 million on 31 December 2022, principally due to the increase in other receivables (Euro 0.3 million) and inventories (Euro 0.4 million), offset by the decrease in trade receivables (Euro 0.1 million) and the increase in current non-financial payables (Euro 0.6 million).

Net fixed capital at 30 June 2023 slightly reduced on 31 December 2022 (Euro 0.4 million), due to the depreciation provisioned (Euro 0.9 million) in excess of the investments made (Euro 0.5 million).

Net capital employed at 30 June 2023 decreased Euro 0.4 million compared to 31 December 2022.

The increase in equity at 30 June 2023 compared to 31 December 2022 was Euro 0.9 million, relating to the profit in the period.

The net financial debt at 30 June 2023 amounted to Euro 21.1 million, a decrease of Euro 1.2 million on 31 December 2022 (Euro 22.3 million).

The company workforce at 30 June 2023 numbered 83, in addition to 14 temporary staff. Employees at 31 December 2022 also numbered 83, unchanged compared to 30 June 2022.

The tensions on the raw glass supply market may continue in 2023, making the quantity of raw material available for processing and its cost uncertain.

The potential impact of this on company results could see a possible further increase in the sales price of furnace-ready glass.

* * *

Italian Glass Moulds Srl

Registered office: Portogruaro - Via Mattei, 13 Operating sector: production and maintenance of moulds

Chairperson:	Roberto Cardini
Vice Chairperson:	Roberto Celot
Directors:	Michele Pezza Alessandro Piovan – General Manager
Statutory Auditors:	Andrea Manetti - chairperson Rodolfo Pesce Marco Prandin

IGM operates in a key area of glass container production and boasts modern facilities, its own technologies and an established and significant know-how.

The reclassified income statement to 3 June 2023 of Italian Glass Moulds Srl, compared to the half-year to 30 June 2022, is presented below:

	H1 2023		H1 2022		Changes
	Euro thou.	%	Euro thou.	%	%
Revenues	2,130	100.0%	0		n.a.
Changes in finished and semi-finished products and work in progress	(31)	(1.5)%	0		n.a.
					n.a.
Value of production	2,099	98.5%	0		n.a.
Cost of goods and services	(1,160)	(54.5)%	0		n.a.
Value added	939	44.1%	0		n.a.
Personnel expenses	(908)	(42.6)%	0		n.a.
EBITDA	31	1.5%	0		n.a.
Amortisation and depreciation	(519)	(24.4)%	0		n.a.
Accruals to provisions	0	0	0		n.a.
EBIT	(488)	(22.9)%	0		n.a.
Net recurring non-operating income	13	0.6%	0		n.a.
Operating Profit/(loss)	(475)	(22.3)%	0		n.a.
Net financial expense	(49)	(2.3)%	0		n.a.
Net exchange rate gains/(losses)	0	0	0		n.a.
Profit/(loss) before taxes	(524)	(24.6)%	0		n.a.
Income taxes	202	9.6%	0		n.a.
Profit/(loss) for the period	(322)	(15.1)%	0		n.a.

The reclassified statement of financial position of Italian Glass Moulds Srl at 30 June 2023 and 31 December 2022 and 30 June 2022 was as follows:

	30.06.2023		31.12.2022		30.06.2022
	Euro thou.	%	Euro thou.	%	Euro thou.	%
Trade receivables	695		306		0
Other receivables	1,183		1,482		0
Inventories	524		509		0
Current non-financial payables	(1,096)		(1,757)		0
Payables on fixed assets	(150)		0		0
A) Working capital	1,156	14.2%	540	7.1%	0
Net tangible and intangible assets	7,618		7,750		0
Other equity investments and non-current assets	300		175		0
Non-current provisions and non-financial payables	(929)		(880)		0
B) Net fixed capital	6,989	85.8%	7,045	92.9%	0
A+B= Net capital employed	8,145	100.0%	7,585	100.0%	0
Financed by:
Current loans and borrowings	5,141		4,601		0
Cash and cash equivalents	(223)		(247)		0
Current net debt	4,918	60.4%	4,354	57.4%	0
Non-current loans and borrowings	3,703	45.5%	3,385	44.6%	0
C) Net financial debt	8,621	105.8%	7,739	102.0%	0
Opening equity	(154)		0		0
Dividends	0		0		0
Other equity changes	0		83		0
Profit/(loss) for the period	(322)		(237)		0
D) Closing equity	(476)	(5.8)%	(154)	(2.0)%	0
C+D = Total financial debt and equity	8,145	100.0%	7,585	100.0%	0

Atypical and/or unusual transactions

There were no atypical and/or unusual transactions for the period ended 30 June 2022 as defined by Consob Communication DEM/6064293.

Significant events after 30 June 2023

There were no significant events after 30 June 2023.

Outlook

Based on the available information, we expect Beverage and Food container withdrawals by operators to gradually normalise over the coming months, partly due to the retail system's need to replenish inventories, while the Cosmetics and Perfumery container market will remain dynamic, with demand at good levels, driven by the Premium segment and branded products.

We remain confident in the strength and positive medium to long-term outlook for the glass container market, which shall follow the established historical trend.

A gradual normalisation of the cost of most production factors also appears increasingly likely, and in particular of energy, while raw material costs - which remain high (particularly raw glass) - should show signs of reduction over the coming months. The margin outlook for the second half of the year will therefore be shaped by the development of all these factors and remain unchanged and positive.

An awareness of market development, so as to optimise production capacity utilisation to serve demand, the modernisation and upgrading of facilities, the ongoing drive for greater productivity, the efficient use of resources - particularly energy - and cost containment continue to be key areas of focus for the Group companies.

In addition, the Group is strongly committed to continuously improving its sustainability profile through a focus on investment, production factor utilisation and operating processes, aware of the importance of this aspect for the increasing adoption of glass in the near future.

The medium/long-term glass container sector outlook, and of the Group in particular, remains unaltered and positive, confirming the consolidated development trajectory that the glass container market has historically shown and that appears increasingly robust due to the growing appreciation of glass among users and consumers.

Fossalta di Portogruaro, 28 July 2023

For the Board of Directors The Chairperson Mr. Nicolò Marzotto

Interim Directors' Report

Condensed Interim Consolidated Financial Statements

Consolidated Financial Statements

Statement of financial position

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022	Note
ASSETS
Non-current assets
Property, plant and equipment	273,934	285,938	283,428	(1)
Goodwill	2,709	2,674	2,672	(2)
Intangible assets	1,969	2,641	2,045
Equity investments measured using the equity method	127,885	119,394	100,821	(3)
Equity investments	388	389	388
Other non-current assets	6,283	6,188	6,175	(4)
Deferred tax assets	6,971	5,834	3,455
Total non-current assets	420,139	423,058	398,984
Current assets
Inventories	121,839	112,443	94,397	(5)
Trade receivables	140,416	130,529	112,461	(6)
Other current assets	11,358	13,913	9,522	(7)
Current tax receivables	8,864	18,706	5,581
Other current financial assets	16,438	11,391	0	(8)
Cash and cash equivalents	69,524	91,435	86,366	(9)
Total current assets	368,439	378,417	308,327
TOTAL ASSETS	788,578	801,475	707,311
EQUITY & LIABILITIES
EQUITY
Share capital	8,926	8,895	8,890
Reserves	49,331	46,887	45,905
Acquisition of treasury shares	(4,825)	(2,819)	(1,807)
Retained earnings	213,923	178,391	179,594
Group Profit	74,636	86,596	31,088
TOTAL GROUP EQUITY	341,991	317,950	263,670
NON-CONTROLLING INT. EQUITY	708	523	382
TOTAL EQUITY	342,699	318,473	264,052	(10)
LIABILITIES
Non-current liabilities
Provisions for risks and charges	2,422	2,455	2,723	(11)
Post-employment benefit provision	4,216	4,215	3,936	(12)
Non-current loans and borrowings	205,570	226,324	201,548	(13)
Other non-current liabilities	5,635	6,246	1,255	(14)
Deferred tax liabilities	2,395	2,245	2,062
Total non-current liabilities	220,238	241,485	211,524
Current liabilities
Bank loans & borrowings and current portion of non
current loans & borrowings	92,222	110,461	108,107	(15)
Trade and other payables	99,319	105,977	94,728	(16)
Other current liabilities	32,194	24,556	24,973	(17)
Current tax payables	1,906	523	3,927	(18)
Total current liabilities	225,641	241,517	231,735
TOTAL LIABILITIES	445,879	483,002	443,259
TOTAL EQUITY AND LIABILITIES	788,578	801,475	707,311

Income Statement

(Euro thousands)	H1 2023	H1 2022	Note
Revenues	286,541	219,804	(19)
Raw materials, ancillaries, consumables and goods
	(61,431)	(52,965)	(20)
Service costs	(97,861)	(90,929)	(21)
Personnel expense	(43,702)	(38,140)	(22)
Amortisation and depreciation	(27,999)	(23,846)	(23)
Impairment of fixed assets	0	0
Other operating expenses	(2,154)	(1,905)
Other operating income	2,165	3,626
Equity-accounted joint
ventures	31,387	15,367	(3)
EBIT	86,946	31,012
Financial income	439	6,873
Financial expenses	(4,934)	(992)	(24)
Net exchange rate gains/(losses)	1,355	(295)	(25)
Profit before taxes	83,806	36,598
Income taxes	(8,985)	(5,356)	(26)
Net result for the period	74,821	31,242
Non-controlling interests loss (profit)	(185)	(154)
Group Profit	74,636	31,088
Earnings per share:
Basic earnings per share	* 0.842	* 0.351
Diluted earnings per share	* 0.836	* 0.350

Statement of Comprehensive Income

(Euro thousands)		H1 2023	H1 2022
Net result for the period		74,821	31,242
Items that will be subsequently reclassified to profit or loss
Translation difference for foreign operations		2,398	(701)
Tax effect		0	0
Share of profits/losses recognised to equity by equity-accounted companies		(256)	1,089
Total items that will be subsequently reclassified to profit or loss
	A)	2,142	388
Items that will not be subsequently reclassified to profit or loss
Actuarial gains/(losses) on defined benefit plans		0	0
Tax effect		0	0
Total items that will not be subsequently
reclassified to profit or loss	B)	0	0
Total other comprehensive income statement items, net of taxes	A+B)	2,142	388
Total comprehensive income for the period		76,963	31,630

Statement of Cash Flows

(Euro thousands)		H1 2023	H1 2022
CASH FLOW FROM OPERATING ACTIVITIES:
Net result for the period		74,821	31,242
Adjustments to reconcile net profit with cash flow generated from operating activities
Amortisation and depreciation		27,999	23,840
Impairment of property, plant and machinery		0	0
Losses/(gains) on sale of property, plant & equipment		(40)	(405)
Share-based payment settled with equity instruments		226	(605)
Provision adjustments		(33)	590
Financial income		(439)	(6,346)
Financial expenses		4,934	465
Net exchange rate gains/(losses)		(1,355)	295
Income taxes		8,985	(2,710)
Equity-accounted joint ventures		(31,387)	(15,367)
Changes in operating assets and liabilities:
Decrease/(increase) in trade receivables		(9,887)	(17,928)
Decrease/(increase) in other current assets		2,555	(2,737)
Decrease/(increase) in inventories		(9,396)	(1,608)
Increase/(decrease) in trade & other payables		(988)	19,203
Increase (decrease) in other current liabilities		7,638	2,794
Change in other non-current assets and liabilities		549	1,144
Total adjustments and changes		(639)	625
Dividends distributed by equity-accounted joint ventures		22,640	13,685
Interest paid in the period		0	0
Net Cash Flows from operating activities	(A)	96,822	45,552
CASH FLOW FROM INVESTING ACTIVITIES:
Gross investments in intangible assets		(35)	(73)
Gross investments in property, plant and equipment		(13,207)	(46,225)
Increase/(decrease) in payables for purchases of non-current assets		(5,670)	(5,328)
Sales price of property, plant and equipment		40	2,424
Investments in financial assets		(6,784)	0
Acquisition of subsidiaries, net of liquidity acquired		0	0
Net cash flow used in investing activities	(B)	(25,656)	(49,202)
CASH FLOWS FROM FINANCING ACTIVITIES:
Acquisition of treasury shares		(2,006)	(714)
Proceeds from the exercise of stock options		2,267	6,522
Interest paid in the period		(4,713)	(598)
Interest received in the period		305	8
New financing		28,472	37,682
Decrease in bank payables		(63,830)	(33,385)
Repayment leases liabilities		(1,985)	(1,845)
Dividends distribution		(53,261)	(35,427)
Net cash flow used in financing activities	(C)	(94,751)	(27,757)
Change in assets and liabilities items due to translation effect	(D)	1,674	237
Net change in cash and cash equivalents		(21,911)	(31,170)
Cash & cash equivalents at beginning of period	(A+B+	91,435	117,536

Statement of changes in Equity

	Share capital	Legal reserve	Revaluation reserve	Other reserves	Capital paid-in	Treasury shares	Translation reserve	Actuarial gains/(losses) on deferred benefit plans	Retained earnings	Profit	Total Group equity	Total non-controlling interest equity	Total consolidated equity
Balance at 31 December 2021	8,800	1,760	27,334	16,087	157	(1,093)	(2,930)	(1,173)	152,335	60,019	261,296	228	261,524
Profit (Loss)	0	0	0	0	0	0	0	0	0	31,088	31,088	154	31,242
Profit (loss) recognised directly to equity	0	0	0	1,089	0	0	(701)	0	0	0	388	0	388
Total Comp. Income (expense)	0	0	0	1,089	0	0	(701)	0	0	31,088	31,476	154	31,630
Allocation of result	0	0	0	0	0	0	0	0	60,019	(60,019)	0	0	0
Sale of treasury shares	0	0	0	0	0	0	0	0	0	0	0	0	0
IFRS 2	0	0	0	590	0	0	0	0	0	0	590	0	590
Other changes	0	0	0	(3)	0	0	0	0	0	0	(3)	0	(3)
Share issue	90	0	0	6,432	0	0	0	0	0	0	6,522	0	6,522
Re-acquisition of treasury shares	0	0	0	0	0	(714)	0	0	0	0	(714)	0	(714)
Movement non-controlling interests eq.	0	0	0	0	0	0	0	0	0	0	0	0	0
Distribution dividends	0	0	0	0	0	0	0	0	(35,497)	0	(35,497)	0	(35,497)
Balance at 30 June 2022	8,890	1,760	27,334	24,195	157	(1,807)	(3,631)	(1,173)	176,857	31,088	263,670	382	264,052
Profit (Loss)	0	0	0	0	0	0	0	0	0	55,508	55,508	141	55,649
Profit (loss) recognised directly to equity	0	0	0	(1,089)	0	0	82	183	0	0	(824)	0	(824)
Total Comp. Income (expense)	0	0	0	(1,089)	0	0	82	183	0	55,508	54,684	141	54,825
Allocation of result	0	0	0	0	0	0	0	0	0	0	0	0	0
Acquisition of treasury shares	0	0	0	0	0	(1,012)	0	0	0	0	(1,012)	0	(1,012)
IFRS 2	0	0	0	(2,527)	0	0	0	0	2,732	0	205	0	205
Other changes	0	0	0	3	0	0	0	0	0	0	3	0	3
Share issue	5	0	0	395	0	0	0	0	0	0	400	0	400
Movement non-controlling interests eq.	0	0	0	0	0	0	0	0	0	0	0	0	0
Distribution dividends	0	0	0	0	0	0	0	0	0	0	0	0	0
Balance at 31 December 2022	8,895	1,760	27,334	20,977	157	(2,819)	(3,549)	(990)	179,589	86,596	317,950	523	318,473
Profit (Loss)	0	0	0	0	0	0	0	0	0	74,636	74,636	185	74,821
Profit (loss) recognised directly to equity	0	0	0	(256)	0	0	2,398	0	0	0	2,142	0	2,142
Total Comp. Income (expense)	0	0	0	(256)	0	0	2,398	0	0	74,636	76,778	185	76,963
Allocation of result	0	0	0	0	0	0	0	0	86,596	(86,596)	0	0	0
Acquisition of treasury shares	0	0	0	0	0	(2,006)	0	0	0	0	(2,006)	0	(2,006)
IFRS 2	0	0	0	226	0	0	0	0	0	0	226	0	226
Other changes	0	0	0	37	0	0	0	0	0	0	37	0	37
Share issue	31	0	0	2,236	0	0	0	0	0	0	2,267	0	2,267
Re-acquisition of treasury shares	0	0	0	0	0	0	0	0	0	0	0	0	0
Movement non-controlling interests eq.	0	0	0	0	0	0	0	0	0	0	0	0	0
Distribution dividends	0	0	0	0	0	0	0	0	(53,261)	0	(53,261)	0	(53,261)
Balance at 30 June 2023	8,926	1,760	27,334	23,220	157	(4,825)	(1,151)	(990)	212,924	74,636	341,991	708	342,699

Notes to the financial statements

NOTES TO THE FINANCIAL STATEMENTS

SUMMARY OF THE IFRS INTERNATIONAL ACCOUNTING STANDARDS USED FOR THE PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2023

Group activities

Zignago Vetro SpA is a joint stock company limited by shares domiciled at Fossalta di Portogruaro via Ita Marzotto No. 8.

The publication of the condensed interim consolidated financial statements at 30 June 2023 of Zignago Vetro S.p.A. was approved by the Board of Directors on 28 July 2023.

General preparation criteria

The condensed interim consolidated financial statements at 30 June 2023 and for the period ended at that date are presented in accordance with IAS 34 – Interim financial reporting, which relates to the reporting of interim financial information and data (the "Condensed Interim Consolidated Financial Statements"). Accounting standard IAS 34 provides for a minimum level of information significantly lower than that required by IFRS, where information has already been published on the complete Financial Statements prepared in accordance with IFRS.

Therefore, the present condensed interim consolidated financial statements, which were prepared in "condensed" form and include the minimum disclosures required by IAS 34, should be read together with the Group consolidated financial statements for the year ended 31 December 2022, prepared in accordance with the International Accounting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and approved by the European Union. IFRS include all the revised international accounting standards (IAS) and all interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"), previously known as the Standing Interpretations Committee ("SIC").

The Condensed Interim Consolidated Financial Statements at 30 June 2023 consist of the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of cash flows, the statement of changes in equity and these notes.

List of documents applicable as of financial statements for fiscal years beginning 1 January 2023

The accounting policies adopted for the preparation of the interim financial statements at 30 June 2023 are the same as those utilised for the consolidated financial statements of the Zignago Vetro Group at 31 December 2022, except for the adoption of new standards and interpretations approved by the IASB and endorsed in Europe. This table below presents the recent changes to IFRS Accounting Standards applicable from the fiscal year, coinciding with the calendar year, beginning 1 January 2023.

Document title	Issued date	Effective date	Endorsement date	EU Regulation and publication date
IFRS 17 - Insurance contracts (including amendments published in June 2020)	May 2017 June 2020	1 January 2023	19 November 2021	(EC) 2021/2036 November 23, 2021
Definition of accounting estimates (Amendments to IAS 8)	February 2021	1 January 2023	2 March 2022	(EU) 2022/357 3 March 2022
Disclosure of accounting policies (Amendments to IAS 1[2])	February 2021	1 January 2023	2 March 2022	(EU) 2022/357 3 March 2022
Deferred taxes related to assets and liabilities arising from a single transaction (Amendments to IAS 12)	May 2021	1 January 2023	11 August 2022	(EU) 2022/1392 12 August 2022
Initial application of IFRS 17 and IFRS 9 - Comparative information (Amendments to IFRS 17)	December 2021	1 January 2023	8 September 2022	(EU) 2022/1491 September 9, 2022
International Tax Reform - Rules of the Pillar 2 model (Amendments to IAS 12)	May 2023	23 May 2023	TBD	TDB

[2] The document published by the IASB includes amendments to 'IFRS Practice Statements 2 - Making Materiality Judgements' which was not subject to EU endorsement as it is not an accounting standard or interpretation.

Document title	Issued date by the IASB	Effective date of the IASB document	Expected endorsement date by EU
Classification of liabilities as current or non-current (Amendments to IAS 1) and Non current liabilities with covenants (Amendments to IAS 1)	January 2020 July 2020 October 2022	1 January 2024	TBD
Lease liability in a sale and leaseback (Amendments to IFRS 16)	September 2022	1 January 2024	TBD
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)	May 2023	1 January 2024	TBD

List of documents applicable as of financial statements for fiscal years beginning 1 January 2024

The Group will adopt these new standards and amendments and is assessing potential impacts on the consolidated financial statements. These concern amendments to standards and/or interpretations which are not expected to have any significant impacts on the Group consolidated financial statements.

List of documents not subject to EU endorsement

Below we report the IFRS, interpretations and amendments to existing accounting policies and interpretations, or specific provisions within the standards and interpretations approved by the IASB, which have not yet been endorsed for adoption in Europe at the approval date of these consolidated financial statements.

Document title	Issued date by the IASB	Effective date of the IASB document	Expected endorsement date by EU
Standards
IFRS 14 Regulatory Deferral Accounts	January 2014	1 January 2016	Postponed pending the new accounting standard on "rate-regulated activities".
Amendments
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)	September 2014	Postponed until the completion of the IASB project on the equity method	Endorsement process postponed pending the conclusion of the IASB project on the equity method

The Group will adopt these new standards and amendments, according to the scheduled application date and will evaluate the potential impacts on the consolidated financial statements, where they have been approved by the European Union.

The statement of financial position is presented in comparative form with 31 December 2022 and 30 June 2020. The results reported were consistent in the three periods presented and show the consolidated statement of financial position of the Zignago Vetro Group, with the full consolidation of Zignago Vetro Brosse SAS, Zignago Vetro Polska SA, Vetro Revet Srl, Italian Glass Moulds Srl and Zignago Glass Usa Inc. and application of the equity method to Vetri Speciali SpA, Vetreco Srl and Julia Vitrum SpA.

These Condensed Interim Consolidated Half-Year Financial Statements of the Zignago Group as at and for the six months ended 30 June 2023 were prepared under the historical cost method, except for investments in financial assets and in derivative instruments, which are recorded at fair value.

They were prepared in Euro, the currency of the area in which the Group operates. All the amounts reported in the statements and notes to the condensed consolidated half-year financial statements are expressed in thousands of Euro, unless otherwise indicated.

Consolidation scope and basis of consolidation

The main consolidation criteria adopted were as follows:

• the elimination of the carrying amount of equity investments against the recognition of the assets and liabilities of the subsidiary according to the line-by-line method or at equity;
• the recognition of any possible non-controlling interest in equity;
• the elimination of all intergroup transactions, consisting of payables and receivables, sales and purchases, and unrealised profits and losses.

The assets and liabilities, charges and income of the companies consolidated under the line-by-line method are fully included in the consolidated financial statements; the book value of the investments is eliminated against the corresponding fraction of the equity of the subsidiaries.

At the control acquisition date, the equity of the investees is established attributing to the relevant assets and liabilities their present value. Any positive difference between the acquisition cost and the fair value of the net assets acquired is recorded in the asset account "Goodwill"; if negative, it is recognised to the statement of profit and loss.

The share of the equity and of profit and loss for the period relating to non-controlling interests is recognised in specific accounts in equity and in profit and loss. In the case of full control not being acquired the noncontrolling interest equity is established based on the share of the present value attributable to the assets and liabilities at the date of acquisition of control, excluding any attributable goodwill (so-called partial goodwill method). Alternatively, in the case of full control not being acquired, the entire amount of goodwill (negative goodwill) generated by the acquisition is recorded considering therefore also the shareholding of non-controlling interests (so-called full goodwill method); they are expressed at their overall fair value including therefore the share of goodwill (negative goodwill). The goodwill calculation method (negative goodwill) is chosen on a case by case basis for each business combination.

With regard to equity investments acquired subsequent to the acquisition of control (non-controlling interest acquisitions), any difference between the acquisition cost and the corresponding portion of equity acquired is recognised to equity; similarly the effects from the sale of the non-controlling share without loss of control are recognised to equity.

If the acquisition value of the investments is above the pro-rata value of the equity of the investment, the positive difference is attributed, where possible, to the net assets acquired based on the fair value of the same while the residual is recorded in the account "Goodwill".

Goodwill is not amortised but is subject to verification, at least annually, of an impairment test when events or changes occur indicating that the carrying value can no longer be recovered. The goodwill is stated at cost net of any impairment losses.

The half-year financial statements of the subsidiaries utilised for the preparation of the condensed consolidated half-year financial statements are those approved by the respective Board of Directors. The data of the consolidated companies are adjusted, where necessary, in line with the accounting principles utilised by the Parent, which are in accordance with the IFRS adopted by the European Union.

The companies included in the consolidation scope at 30 June 2023 and 2022 and at 31 December 2022 are shown below; the percentage holdings refer to 30 June 2023.

CONSOLIDATION SCOPE

Consolidated Companies	Registered Office	Share capital	Percentage holding
(Euro)		(in local currency)	of the Group
Zignago Vetro SpA (Parent)	Fossalta di Portogruaro (VE)	8,926,308	---
Companies consolidated using the line-by-line method:
Zignago Vetro Brosse SAS	Vieux-Rouen-sur-Bresle (France)	4,000,000	100%
Zignago Vetro Polska SA	Trabkj (Poland)	PNL 3,594,000	100%
Zignago Glass USA Inc.	New York (U.S.A.)	USD 200,000	100%
Vetro Revet Srl	Empoli (FI)	402,000	51%
Italian Glass Moulds Srl	Portogruaro (VE)	100,000	100%
Equity-accounted investees:
Vetri Speciali SpA and subsidiaries	Trento (TN)	10,062,400	50%
Vetreco Srl	Supino (FR)	400,000	30%
Julia Vitrum	S. Vito al Tagliamento (PN)	625,000	40%

Translation of financial statements in currencies other than the Euro

The rules for the translation of financial statements of Companies which operate in a currency other than the Euro are the following:

• the assets and the liabilities were translated using the exchange rate at the balance sheet date;
• the costs and revenues, and income and charges, were translated using the average exchange rate for the period;
• the "Translation reserve" includes both the exchange rate differences generated from the translation of foreign currency profit and loss items and at a rate different from the closing rate exchange, and also those generated from the translation of opening equity at a closing rate exchange which is a different from the closing exchange;
• goodwill related to the acquisition of a foreign entity is treated as assets and liabilities of the foreign entity and translated at the closing date.

For the conversion of the Financial Statements expressed in foreign currencies, the rates indicated in the following table are applied (foreign currency for every 1 Euro).

Description	USD	PLN
	US Dollar	Polish Zloty
Average exchange rate:
- January/June 2023		1.0805	4.6243
- January/December 2022		1.0534	4.6858
- January/June 2022		1.0937	4.6351
Closing exchange rate at:
- 30 June 2023		1.0866	4.4388
- 31 December 2022		1.0666	4.6808
- 30 June 2022		1.0387	4.6904

Use of estimates

The preparation of the Condensed Interim Consolidated Financial Statements and the relative notes in application of IFRS require that management make estimates and assumptions on the values of the assets and liabilities in the consolidated half-year report and on the information relating to the assets and potential liabilities at the balance sheet date. The actual results may differ from those estimated. The estimates are used to value the doubtful debt and inventory obsolescence provisions, depreciation and amortisation, write-downs of assets, variable incentive and remuneration systems, deferred taxes, other provisions and funds and customer liabilities for packaging returns and the relative lease assets and liabilities.

The estimates and assumptions are reviewed periodically and the effects of all variations are immediately recognized in the statement of profit and loss.

The subjective relevant assessments of company management in applying the Group accounting policies and the main sources of uncertainty upon estimates were the same as those for the preparation of the consolidated financial statements for the year ended 31 December 2022. Compared to the consolidated financial statements at 31 December 2022, Management updated the valuations and estimates in light of the events in the first half of 2023, the forecast figures and the best available forecasts.

IFRS 13 requires that the financial instruments measured at fair value are classified based on three fair value hierarchy levels which reflect the significance of the input utilised in the determination of fair value. Based on the standard, the three fair value levels are as follows:

• Level 1 of fair value: the measurement inputs of the instruments are listed prices for identical instruments in active markets with access at the measurement date;
• Level 2 of fair value: the measurement inputs of the instruments are different than the prices listed at the previous point, which are directly or indirectly observable on the market;
• Level 3 of fair value: the measurement inputs of the instruments are not based on observable market data.

As indicated by the regulation, the hierarchy of the approaches adopted for the determination of all financial instruments (shares, units, bonds and derivatives), attributes priority to official prices available on active market for the assets and liabilities to be measured and, in their absence, to the measurement of assets and liabilities based on significant quotations, where they refer to similar assets and liabilities. On a residual basis, measurement techniques may be utilised based on non-observable inputs, and, therefore, more discretional.

Assets and liabilities valued at fair value on a recurring basis: breakdown by fair value level

The following table shows the assets and liabilities measured at fair value at 30 June 2023 by fair value hierarchy level.

	Book		Fair Value Level
	Value	1	2	3	Total
Financial assets not measured at Fair Value
Cash and cash equivalents (*)	69,524	---	---	69,524	69,524
Trade receivables (*)	140,416	---	---	140,416	140,416
Financial assets measured at Fair Value Other receivables for TEE (white certificates) Hedges	--- 9,654	--- ---	--- 9,654	--- ---	--- 9,654
Financial liabilities not measured at Fair Value
Non-current loans and borrowings(*)	205,570	---	---	205,570	205,570
Lease liabilities (IFRS 16)	17,675	---	---	17,675	17,675
Bank loans & borrowings and current portion of non-current loans & borrowings	92,222	---	576	91,646	92,222
Other non-current payables (*)	5,635	---	---	5,635	5,635
Trade and other payables (*)	99,319	---	---	99,319	99,319

(*) The amounts refer to current financial assets and liabilities whose book value reasonably approximates fair value, which consequently has not been stated.

NOTES TO THE MAIN STATEMENT OF FINANCIAL POSITION ACCOUNTS

NON-CURRENT ASSETS

	30.06.2023	31.12.2022	30.06.2022
1 – Property, plant and equipment	273,934	285,938	283,428

Property, plant and equipment at 30 June 2023 amounted to Euro 273,934 thousand, after depreciation in the period of Euro 28 million and capital expenditure of Euro 13.6 million, net of fixed assets in progress items (gross of disposals in the period).

The table below shows the historical cost, accumulated depreciation and carrying amount of property, plant and equipment in the two periods:

(Euro thousands)			Balance at 30.06.2023			Balance at 30.06.2022
	Historic	Write-down	Accum.	Net	Historic	Accum.	Net
	Cost	Provision	Depreciation	Value	Cost	Depreciation	Value
Land & buildings	140,867	0	(51,512)	89,355	114,857	(45,056)	69,801
Right-of-use IFRS 16	30,333	0	(12,814)	17,519	28,716	(7,473)	21,243
Plant & machinery	449,591	0	(312,029)	137,562	376,129	(278,066)	98,063
Industrial and commercial equipment	99,019	0	(89,334)	9,685	88,024	(83,927)	4,097
Other assets	11,715	0	(8,918)	2,797	15,940	(13,013)	2,927
Assets in progress	17,016	0	0	17,016	87,297	0	87,297
Total	748,541	0	(474,607)	273,934	710,963	(427,535)	283,428

(Euro thousands)	Balance at 01.01.2023	Acquisitions & capitalisations	Reclassifications	Write downs	Decreases	Depreciation	Exchange rate differences	Balance at 30.06.2023
Land & buildings	91,098	0	0	0	(54)	(2,772)	1,083	89,355
Right-of-use IFRS 16	18,848	1,271	0	0	0	(2,600)	0	17,519
Plant & machinery	153,244	757	175	0	(106)	(17,317)	809	137,562
Industrial & commercial equipment	13,183	538	0	0	(16)	(4,111)	91	9,685
Other assets	2,854	448	0	0	(18)	(523)	36	2,797
Assets in progress and advances	6,711	10,404	(175)	0	0	0	76	17,016
Total	285,938	13,418	0	0	(194)	(27,323)	2,095	273,934

Assets in progress mainly concern ordinary investments at the Zignago Vetro Spa and Zignago Vetro Brosse Sas production sites.

	30.06.2023	31.12.2022	30.06.2022
2 - Goodwill	2,709	2,674	2,672

The Euro 2,709 thousand recognised as goodwill at 30 June 2023 reflects the higher value paid for the acquisition of Zignago Vetro Polska SA (Euro 692 thousand) and Vetro Revet Srl (Euro 2,017 thousand).

Goodwill comprises Euro 2,017 thousand regarding the gain paid for the acquisition by Zignago Vetro Spa of the 51% stake in Vetro Revet Srl.

The goodwill arises from the possibility to ensure the procurement of recycled glass in Tuscany in service of the adjacent Empoli facility.

The performance of the company Vetro Revet in the first half of 2023 indicates that goodwill was not impaired in the period, also in view of the earnings outlook for the second half of the year and next year. This goodwill was therefore not subject to an impairment test.

3 - Investments in companies valued	30.06.2023	31.12.2022	30.06.2022
at equity	127,885	119,394	100,821

The Group has three investments in jointly controlled companies:

• Vetri Speciali SpA and subsidiaries
• Vetreco Srl;
• Julia Vitrum SpA

Vetri Speciali SpA derives from a corporate restructuring operation undertaken in 2004 and is involved in the production and sale of specialty glass containers. The company's registered offices are at via Manci 5, Trento. Production is carried out at the Spini di Gardolo (TN), Pergine Valsugana (TN), Ormelle (TV) and San Vito al Tagliamento (PN) facilities.

The JV is a strategic investment for the Group, undertaken as part of the production diversification pursued by the Parent.

The Zignago Group holds 50% of ordinary company shares; all shares guarantee equal rights. In 2023, the Company distributed dividends totalling Euro 45.3 million to shareholders.

Vetreco Srl is an Italian limited company domiciled in Supino (FR), incorporated in July 2010 as a joint venture, involved in the processing of raw glass and the supply of cullet ready for re-use in production.

The investment percentage of Zignago Vetro SpA is 30%.

Julia Vitrum SpA is an Italian company domiciled in San Vito al Tagliamento (PN), incorporated in April 2019 as a joint venture, involved in the processing of raw glass and the supply of cullet ready for re-use in production.

Zignago Vetro SpA's holding is 40%, reducing from the previous 50% due to the entry of a new institutional shareholder.

The valuation of the joint ventures at equity and the movements in the period are summarised below:

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Value of Vetri Speciali SpA investment in Zignago Vetro	25,320	25,320	25,320
Vetri Speciali NE at 100%	248,554	232,498	195,718
Vetri Speciali NE at 50%	124,276	116,247	97,859
Difference between value of investment and share of Equity of
the subsidiary	98,956	90,927	72,539
Valuation using the equity method of Vetri Speciali investment
Share of equity	124,295	116,266	97,878
Uniform accounting principles	(19)	(19)	(19)
Total valuation using the equity method	124,276	116,247	97,859
Increase/(decrease) of carrying amount of investment compared to valuation using the equity method
	98,956	90,927	72,539
Movement in valuation using the equity method
Valuation using the equity method at beginning of period	116,247	95,413	95,413
Profit: pro quota	30,925	34,599	15,082
Other statement of comprehensive income items in period:
Effect of IAS 19 and other changes	(256)	(80)	1,049
Dividends	(22,640)	(13,685)	(13,685)
Uniform accounting principles	0	0	0
Valuation under the equity method at end of period
	124,276	116,247	97,859
P&L effect of valuation using the equity method of the
investment	30,925	34,599	15,082

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Value of Vetreco Srl investment in Zignago Vetro	1,059	1,059	1,059
Vetreco NE at 100% Vetreco NE at 30%	8,239 2,473	8,005 2,404	7,548 2,266
Difference between value of investment and share of Equity of the subsidiary	1,414	1,345	1,207
Valuation using the equity method of Vetreco Srl investment
Share of equity	2,473	2,404	2,266
Uniform accounting principles	0	0	0
Total valuation using the equity method	2,473	2,404	2,266
Increase/(decrease) of carrying amount of investment compared to valuation using the equity method	1,414	1,345	1,207
Movement in valuation using the equity method
Valuation using the equity method at beginning of period	2,404	2,215	2,215
Profit: pro quota	69	189	51
Other statement of comprehensive income items in period: Other changes Increase of share capital portion Uniform accounting principles	0	0	0
Valuation under the equity method at end of period	2,473	2,404	2,266
P&L effect of valuation using the equity method of the investment	69	189	51

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Value of Julia Vitrum Spa investment in Zignago Vetro	500	500	500
Julia Vitrum Equity at 100%	2,838	1,854	1,739
Julia Vitrum Equity at 40%	1,136	743	696
Difference between value of investment and share of Equity of the subsidiary	636	243	196
Valuation using the equity method of Julia Vitrum Spa investment
Share of equity	1,136	743	696
Uniform accounting principles	0	0	0
Total valuation using the equity method	1,136	743	696
Increase/(decrease) of carrying amount of investment compared to valuation using the equity method	636	243	196
Movement in valuation using the equity method
Valuation using the equity method at beginning of period	743
Profit: pro quota Other statement of comprehensive income items in period:	393	462 281	462 234
IAS 19 effect Increase of share capital portion Uniform accounting principles	0	0	0
Valuation under the equity method at end of period	1,136	743	696
P&L effect of valuation using the equity method of the investment	393	281	234

The key financial and performance indicators of the jointly-controlled companies recognised to the consolidated financial statements and valued at equity are also reported.

These figures relate also to the Parent interim reporting date and incorporate the totality of investments held. All investments operate on a going concern basis.

The statement of financial position and statement of profit and loss of Vetri Speciali SpA is summarised below:

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Goodwill	101,455	101,455	101,455
Other non-current assets	169,469	162,765	163,511
Non-current assets	270,924	264,220	264,966
Cash and cash equivalents	54,307	27,594	22,768
Other current assets	153,723	135,192	119,902
Current assets	208,030	162,786	142,670
TOTAL ASSETS	478,954	427,006	407,636
Capital and Reserves	248,554	232,498	195,718
Equity	248,554	232,498	195,718
Non-current loans and borrowings	67,899	44,766	50,776
Other non-current liabilities	27,020	26,540	24,140
Non-current liabilities	94,919	71,306	74,916
Bank loans & borrowings and current portion of
medium/long-term loans	55,739	51,789	71,098
Other current liabilities	79,742	71,413	65,904
Current liabilities	135,481	123,202	137,002
TOTAL LIABILITIES	478,954	427,006	407,636

(Euro thousands)	H1 2023	H1 2022
Revenues Costs of production	189,752	156,381
Amortisation and depreciation	(118,006) (10,420)	(106,101) (10,236)
Operating Result Financial income	61,326 335	40,044 33
Financial expense Exchange rate gains/(losses)	(1,334) 31	(376) 33
Result before taxes	60,358	39,734
Income taxes	1,490	(9,574)
Profit for the period	61,848	30,160
Other positive (negative) components of statement of comprehensive income	0	0
Total comprehensive income	61,848	30,160

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Other non-current assets	16,757	17,454	17,424
Non-current assets	16,757	17,454	17,424
Cash and cash equivalents	(87)	872	23
Other current assets	14,475	15,017	14,922
Current assets	14,388	15,889	14,945
TOTAL ASSETS	31,145	33,343	32,369
Capital and Reserves	8,239	8,006	7,548
Equity	8,239	8,006	7,548
Other non-current liabilities	9,219	9,214	10,731
Non-current liabilities	9,219	9,214	10,731
Bank loans & borrowings and current portion of
medium/long-term loans	743	3,840	2,777
Other current liabilities	12,944	12,283	11,313
Current liabilities	13,687	16,123	14,090
TOTAL LIABILITIES	31,145	33,343	32,369

The statement of financial position and income statement of Vetreco Srl is summarised below:

(Euro thousands)	H1 2023	H1 2022
Revenues	21,953	14,685
Costs of production	(20,291)	(13,361)
Amortisation and depreciation	(888)	(887)
Operating Result	774	437
Financial expense	(316)	(177)
Result before taxes	458	260
Income taxes	(225)	(89)
Profit for the period	233	171
Other positive (negative) components of statement of comprehensive income	0	0
Total comprehensive income	233	171

(Euro thousands)	30.06.2023	31.12.2022	30.06.2022
Other non-current assets	31,051	31,385	32,031
Non-current assets	31,051	31,385	32,031
Cash and cash equivalents	1,226	2,087	378
Other current assets	12,034	12,853	10,095
Current assets	13,260	14,940	10,473
TOTAL ASSETS	44,311	46,325	42,504
Capital and Reserves	2,838	1,854	1,739
Equity	2,838	1,854	1,739
Other non-current liabilities	29,373	29,474	25,827
Non-current liabilities	29,373	29,474	25,827
Bank loans & borrowings and current portion of
medium/long-term loans	4,184	5,522	7,082
Other current liabilities	7,916	9,475	7,856
Current liabilities	12,100	14,997	14,938
TOTAL LIABILITIES	44,311	46,325	42,504

The statement of financial position and income statement of Julia Vitrum Spa is summarised below:

(Euro thousands)	30.06.2023	30.06.2022
Revenues	16,146	9,024
Costs of production	(13,444)	(7,350)
Amortisation and depreciation	(1,012)	(985)
Operating Result	1,690	689
Financial income/expense	(417)	(76)
Result before taxes	1,273	613
Income taxes	(289)	(29)
Profit for the period	984	584
Other positive (negative) components of statement of comprehensive income	0	0
Total comprehensive income	984	584

All three joint ventures are quoted and a fair value deriving from a quoted market price is not available for any of them.

Relating to the goodwill which constitutes part of the book value attributed to the Vetri Speciali joint venture, it should be noted that this was separately subject to an impairment test by the directors of the joint venture Vetri Speciali SpA, as per IAS 36, for the financial statements at 31 December 2022.

The recoverability of this goodwill shall also be considered in any impairment tests on the value of the investment. In this regard, also at 30 June 2023, there was no indication of an impairment loss on the joint venture.

	30.06.2023	31.12.2022	30.06.2022
4 – Other non-current assets	6,283	6,188	6,175

The receivable mainly concerns guarantee deposits paid by Zignago Vetro Spa and advances paid by Zignago Vetro Polska Sa.

CURRENT ASSETS

	30.06.2023	31.12.2022	30.06.2022
5 - Inventories	121,839	112,443	94,397

The table below shows the composition of inventories:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Raw materials, ancillaries and consumables	28,695	28,005	23,692
Work-in-progress and semi-finished products	182	0	3,787
Finished products	104,368	93,345	76,000
Inventory obsolescence provision	(11,406)	(8,907)	(9,082)
Total	121,839	112,443	94,397

The increase in inventories reflects the business performance over the first six months; the increase in the inventory obsolescence reflects the increase in stock levels.

	30.06.2023	31.12.2022	30.06.2022
6 - Trade receivables	140,416	130,529	112,461

The table below illustrates the trade receivables and the relative doubtful debt provision:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Trade receivables - Italy	67,821	63,566	59,644
Trade receivables - Foreign	40,739	32,753	26,950
Bills	32,691	34,862	26,513
Doubtful debt provision	(835)	(652)	(646)
Total	140,416	130,529	112,461

Trade receivables increased due to the higher volume of monthly revenues in the final months of the period.

At 30 June 2023 and 31 December 2022, trade receivables that were overdue but not individually written down were as follows:

(Euro thousands)	Not overdue	under 30	30 - 60	60 - 90	beyond	Total
		days days	days	days
30 June 2023	117,020	17,691	2,394	2,247	1,064	140,416
31 December 2022	108,297	16,129	3,108	2,411	584	130,529
30 June 2022	93,940	13,952	1,719	1,800	1,050	112,461

The majority of the Group's receivables (approximately 70% of the total) are covered by insurance policies.

The Company does not have significant concentrations of credit risk at the balance sheet date.

The movements during the period in the doubtful debt provision were as follows:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Provision at beginning of period	652	596	596
Provisions	346	353	50
Utilisations	(163)	(297)	0
Total	835	652	646

The doubtful debt provision at 30 June 2023 amounted to Euro 835 thousand, subsequent to the allocation of an accrual of Euro 346 thousand. The utilisations refer mainly to Zignago Vetro Polska and Zignago Vetro Brosse.

The table below shows the breakdown of trade receivables by geographical segment:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Italy	101,533	99,153	87,041
E.U.	33,045	26,187	22,226
Other countries	5,838	5,189	3,194
Total	140,416	130,529	112,461

	30.06.2023	31.12.2022	30.06.2022
7 – Other current assets	11,358	13,913	9,522

The table below shows the composition of "Other current assets":

(Euro thousands)		Balance at	Balance at	Balance at
		30.06.2023	31.12.2022	30.06.2022
VAT receivables		8,772	12,088	8,419
Advances to social security institutions and receivables
from employees and agents		120	60	105
Other receivables		1,400	769	434
	sub)	10,292	12,917	8,958
Accrued income for:
- interest on bank deposits		0	0	0
- services		0	0	0
Prepayments:
- insurance premiums		468	600	139
- rent expenses and leases		190	190	190
- services		408	206	235
Total		11,358	13,913	9,522

"VAT receivables" reflect the taxes paid in relation to the investments of the Group companies. Other receivables mainly include receivables for public grants to be received of Zignago Vetro Brosse for Euro 1,280 thousand.

	30.06.2023	31.12.2022	30.06.2022
8 – Other current financial assets	16,438	11,391	0

The item refers to the fair value measurement of IRS interest rate derivatives of Euro 9,654 thousand and Euro 6,784 thousand for Fixed Income Government Bonds.

	30.06.2023	31.12.2022	30.06.2022
9 - Cash and cash equivalents	69,524	91,435	86,366

The table below shows the composition of cash and cash equivalents:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Time deposits	10,037	8,999	7,000
Bank and postal accounts	59,480	82,431	79,364
Cash and valuables in hand	7	5	2
Total	69,524	91,435	86,366

For the cash flow performance of the company, reference should be made to the half-year consolidated statement of cash flows.

EQUITY

	30.06.2023	31.12.2022	30.06.2022
10 - Group Equity	342,699	318,473	264,052

Equity at 30 June 2023 increased on 31 December 2022 by Euro 24,226 thousand, mainly due to the profit for the period (+Euro 74,636 thousand), the distribution of dividends (-Euro 53,261 thousand), the change in the translation reserve (+Euro 2,364 thousand) and the change in the IFRS 2 Reserve (+Euro 226 thousand), the purchase of treasury shares in the period for Euro 2,006 thousand and the cash in from the exercise of options on shares for Euro 2,267 thousand.

An analysis of the movements in consolidated equity is shown in the condensed consolidated half-year financial statements.

During the periods considered, non-controlling interest equity concerning the investment of the shareholder La Revet SpA in Vetro Revet Srl was 49%.

NON-CURRENT LIABILITIES

	30.06.2023	31.12.2022	30.06.2022
11 - Provisions for risks and charges	2,422	2,455	2,723

The table below shows the composition of the provisions for risks and charges:

	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Post-employment benefits provision	684	649	1,119
Provision for industrial risks	1,121	1,058	916
Agents' supplementary indemnity provision	264	264	252
Provision for contractual risks	353	484	436
Provision for emission trading risks	0	0	0
Total	2,422	2,455	2,723

	30.06.2023	31.12.2022	30.06.2022
12 – Post-employment	4,216	4,215	3,936
benefits

The table below shows the movements in the provision in the periods considered:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Balance at 1 January	4,215	3,909	3,909
Interest paid	49	35	19
Consolidation Italian Glass Moulds	0	839	0
Actuarial loss (profit)	10	(414)	34
Of which change in assumptions	0	660	0
Of which experience adjustments	0	(202)	0
Payments	(58)	(154)	(26)
Balance at 31 December	4,216	4,215	3,936

	30.06.2023	31.12.2022	30.06.2022
13 - Non-current loans and borrowings	205,570	226,324	201,548

The table below shows the composition of non-current loans and borrowings:

	(Euro thousands)	Balance at	Balance at	Balance at
		30.06.2023	31.12.2022	30.06.2022
(A)	Unsecured loan, nominal value Euro 40 million, BNL, Euribor 3 months variable rate, maturity 29 July 2023, repayment by quarterly instalments in arrears	1,995	5,985	9,975
(B)	Unicredit Spa loan, nominal value Euro 60 million, Euribor 3 months variable rate, maturity 20 December 2024, repayment by quarterly instalments	29,946	35,928	41,910
(C)	Banca Intesa SpA loan, nominal value Euro 40 million, Euribor 3 months variable rate, maturity 30 December 2022, repayment by half-yearly instalments	0	0	9,990
(D)	Banca Credit Agricole Friuladria SpA loan, nominal value Euro 10 million, Euribor 3 months variable rate, maturity 31 December 2023, repayment by half-yearly instalments	1,426	2,851	4,277
(E)	Banco BPM SpA loan, nominal value Euro 7 million, Euribor 3 months variable rate, maturity 30 June 2024, repayment by quarterly instalments	2,888	3,633	4,377
(F)	Cassa Depositi e Prestiti subsidised loan, nominal value Euro 7,990 thousand, fixed subsidised rate, 10-year duration, repayment by half-yearly instalments	4,462	5,383	3,794
(G)	BNL loan, nominal value Euro 2,283 thousand, Euribor 6 months variable rate, 10-year duration linked to point (F) above, repayment by half-yearly instalments	1,727	1,727	1,273
(H)	BNL loan, nominal value Euro 10 million, Euribor 3 months variable rate, maturity 7 May 2025, repayment by quarterly instalments	5,544	6,653	7,762
(I)	BPER loan, nominal value Euro 10 million, Euribor 3 months variable rate, maturity 18 June 2025, repayment by half yearly instalments	4,028	5,027	6,023
(J)	INTESA loan, nominal value Euro 25 million, Euribor 3 months variable rate, maturity 5 August 2025, repayment by half-yearly instalments	12,463	14,955	17,448
(K)	UBI loan, nominal value Euro 10 million, fixed rate at market conditions, maturity 15 April 2023, repayment by quarterly instalments	0	2,510	5,013
(L)	Intesa Sanpaolo loan, nominal value Euro 45 million, Euribor 3 months variable rate, maturity 31 May 2026, repayment by half-yearly instalments	26,919	31,406	35,892
(M)	BNL loan, nominal value Euro 30 million, Euribor 3 months variable rate, maturity 28 December 2026, repayment by quarterly instalments	24,664	28,187	29,946

(N)	Mediobanca loan, nominal value Euro 40 million, Euribor 3 months variable rate, maturity 28 October 2026, repayment by half-yearly instalments	31,122	35,511	39,900
(O)	Unicredit Spa loan, nominal value Euro 24 million, Euribor 3 months variable rate, maturity 28 March 2027, repayment by half-yearly instalments	19,142	21,535	23,928
(P)	Credit Agricole Friuladria SpA Bank loan, nominal value Euro 10 million, Euribor 6 months variable rate, maturity 24 August 2028, repayment by half-yearly instalments	9,975	9,972	9,970
(Q)	Banco BPM SpA loan, nominal value Euro 30 million, Euribor 3 months variable rate, maturity 30 September 2027, repayment by quarterly instalments	29,951	29,946	---
(R)	Banco Desio loan, nominal value Euro 3 million, Euribor 1 month variable rate, maturity 10 October 2025, repayment by monthly instalments	2,337	2,832	---
(S)	Deutsche Bank loan, nominal value Euro 30 million, Euribor 3 months variable rate, maturity 19 December 2027, repayment by quarterly instalments	26,946	29,940	---
(T)	Bper banca loan, nominal value Euro 30 million, Euribor 3 months variable rate, maturity 3 December 2028, repayment by quarterly instalments	28,472	0	0
(U)	Zignago Vetro Brosse Sas loan from French bank	0	0	634
(V)	Zignago Vetro Polska SA loans and finance leases	1,292	1,927	2,565
(W)	Vetro Revet Outstanding Loans	3,760	4,104	4,458
(Y)	Italian Glass Moulds Outstanding loans	4,632	4,786	0
	Total non-current loans & borrowings	273,691	284,799	259,135
	IFRS 16 Effect	17,675	19,240	21,415
	Less current portion	(85,796)	(77,715)	(79,002)
	Non-current portion	205,570	226,324	201,548

Financial payables of Euro 17,675 thousand concerning the leasing commitments undertaken by the Group are reported.

	30.06.2023	31.12.2022	30.06.2022
14 – Other non-current liabilities	5,635	6,246	1,255

The account includes at 30 June 2023 and 31 December and 30 June 2022 the deferred income recognised against the tax asset for investments in new machinery under Legislative Decree 91/2014, which is recognised to the income statement on the basis of the depreciation calculated on the investments.

CURRENT LIABILITIES

	30.06.2023	31.12.2022	30.06.2022
15 - Bank loans and borrowings	92,222	110,461	108,107
current portion

The table below shows the composition of bank payables and the current portion of non-current loans and borrowings:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Loan advances	2,040	16,973	20,352
Short-term loans	0	7,008	7,000
Current portion of medium/long-term loans	85,796	77,715	79,002
Advances on bank drafts	3,810	8,765	1,753
Bank loans and borrowings for mark to market	576	---	0
Total	92,222	110,461	108,107

For further details on leases and non-current loans, the current portion of which is included under bank loans and borrowings, reference should be made to the paragraph "Non-current loans and borrowings".

Reconciliation of financial liabilities deriving from loans

As required by IAS 7, the following table summarises the cash flows concerning financial and derivative liabilities arising in the year:

Item	31.12.2022	Cash	Non		30.06.2023
		flow	Cash Acquisition	Other
Bank borrowings - non-current	226,324	(19,189)	0	(1,565)	205,570
Other non-current financial liabilities	6,246	(611)	0	0	5,635
Non-current financial liabilities (A)	232,570	(19,800)	0	(1,565)	211,205
Bank borrowings - current	77,715	8,081	0	0	85,796
Bank overdrafts on borrowings for anticipation effects	8,190	(4,380)	0	0	3,810
Other current financial liabilities	24,556	(21,940)	0	0	2,616
Current financial liabilities (B)	110,461	(18,239)	0	0	92,222
Financial liabilities (A) + (B)	343,031	(38,039)	0	(1,565)	303,427

Finance lease payables IFRS 16

Lease liabilities amount to Euro 17,675 thousand and are comprised as follows:

Lease liabilities (Euro/1000)	Balance at 30.06.2023	Balance at 31.12.2022	Balance at 30.06.2022
Current lease liabilities	4,982	4,901	4,909
Non-current lease liabilities	12,693	14,339	16,506
Total	17,675	19,240	21,415

The movement in lease liabilities in 2023 is presented in the following table:

Lease liabilities
(Euro/1000)	30.06.2023	31.12.2022	30.06.2022
Opening balance	19,240	17,543	17,543
Initial adoption IFRS 16	0	0	0
Increases	420	6,014	5,630
Decreases	(1,985)	(4,317)	(1,758)
Financial expense	0	0	0
Conversion differences
Other movements	0	0	0
Final balance	17,675	19,240	21,415

Net Financial Position

The following table highlights the composition of the net financial debt at 30 June 2023, 31 December 2022 and 30 June 2022 in accordance with CONSOB communication No. DEM/6064293 of 28 July 2006:

	(Euro thousands)		30.06.2023	31.12.2022	30.06.2022
A	Cash and cash equivalents		69,524	91,435	86,366
B	Other liquidity		0	0	0
C	Other current financial assets		16,438	11,391	0
D	Liquidity	(A) + (B) + (C)	85,962	102,826	86,366
E.	Current financial debt		6,426	32,746	29,105
F.	Current portion of non-current debt		85,796	77,715	79,002
G	Current financial debt	(E) + (F)	92,222	110,461	108,107
H	Net current financial debt	(G) - (D)	6,260	7,635	21,741
I	Non-current financial payables		205,570	226,324	201,548
J.	Debt instruments		0	0	0
K	Trade payables and other non-current payables		0	0	0
L	Non-current debt	(I) + (J) + (K)	205,570	226,324	201,548
M	Total financial debt	(H) + (L)	211,830	233,959	223,289

	30.06.2023	31.12.2022	30.06.2022
16 - Trade and other payables	99,319	105,977	94,728

The table below shows the breakdown of trade payables by geographic area:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Italy	72,625	77,676	73,797
E.U.	26,323	27,801	20,582
Other countries	371	500	349
Total	99,319	105,977	94,728

Included among trade payables are capital expenditure payables of Euro 7,421 thousand at 30 June 2023 (Euro 13,016 thousand at 30 June 2022).

	30.06.2023	31.12.2022	30.06.2022
17 – Other current liabilities	32,194	24,556	24,973

The table below shows the composition of "Other current liabilities":

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Employee payables	20,525	17,362	16,621
Social security institutions	4,419	4,440	3,528
Employees and consultants withholding taxes	1,547	1,670	1,978
VAT payables	192	125	216
Current portion of tax credit on investments	291	304	304
Contribution payables	0	0	0
Customer advances	0	0	107
Other payables	1,676	655	2,219
Accrued liabilities and deferred income:
- employees	0	0	0
- energy grants	3,544	0	0
Total	32,194	24,556	24,973

	30.06.2023	31.12.2022	30.06.2022
18 - Current tax liabilities	1,906	523	3,927

Tax liabilities relate to income tax for the period for the Group Companies. The Parent Zignago Vetro SpA, where applicable, complied with the option exercised by its Parent Zignago Holding SpA in relation to the national fiscal consolidation.

EXPLANATORY NOTES TO THE MAIN INCOME STATEMENT ACCOUNTS

	H1 2023	H1 2022
19 - Revenues	286,541	219,804

The following table shows the breakdown of revenues by product line:

(Euro thousands)	H1 2023	H1 2022
Core business products	275,615	209,845
Various materials	2,166	1,251
Service revenue	3,328	2,502
Others	5,432	6,206
Total	286,541	219,804

Further information on revenues is reported in the Directors' Report.

Revenues by region are outlined in the table below:

(Euro thousands)	H1 2023	H1 2022
Italy	163,825	128,039
E.U.	98,795	70,099
Other countries	23,921	21,666
Total	286,541	219,804

	H1 2023	H1 2022
20- Raw materials, consumables	61,431	52,965
and goods

The table below shows the costs for raw materials, ancillaries, consumables and goods:

(Euro thousands)	H1 2023	H1 2022
Purchases Changes in inventories of raw materials, ancillaries, consumables and	69,730 2,665	51,655 (2,758)
finished goods Changes in inventory of work-in-progress, semi-finished & finished products	(10,964)	4,068
Total	61,431	52,965

	H1 2023	H1 2022
21 - Service costs	97,861	90,929

The following table shows service costs:

(Euro thousands)		H1 2023	H1 2022
Energy and industrial services		73,728	68,326
Transport and other trading costs		12,026	12,188
Conai Contribution		2,116	3,423
Other costs		9,991	6,992
Total		97,861	90,929
	H1 2023	H1 2022
22 - Personnel expense	43,702	38,140

The following table reports personnel expense:

(Euro thousands)	H1 2023	H1 2022
Wages and salaries	32,728	28,446
Social security expenses	9,737	8,514
Provision for defined contribution plans	1,237	1,180
Total	43,702	38,140

	H1 2023	H1 2022
23 - Amortisation & Depreciation	27,999	23,846

The following table reports amortisation & depreciation:

(Euro thousands)	H1 2023	H1 2022
Depreciation of fixed assets	27,323	23,323
Amortisation of intangible assets	676	523
Total	27,999	23,846

	H1 2023	H1 2022
24 - Financial expense	4,934	992

The following table shows financial expense:

(Euro thousands)	H1 2023	H1 2022
Interest on bank accounts	224	38
Loan interest	2,509	254
Financial expenses on interest rate hedges	0	5
Derivative fair value measurement effect	1,768	528
Others	433	167
Total	4,934	992

The increase in financial expense reflects the higher benchmark interest rates, which were significantly raised by the Central Banks from the end of 2022.

	H1 2023	H1 2022
25 - Net exchange gains/(losses)	1,355	(295)

The following table breaks down exchange rate gains (losses), mainly stemming from the conversion into Euro of the loan granted by the parent Zignago Vetro Spa to the Polish subsidiary.

	H1 2023	H1 2022
26 - Income taxes	8,985	5,356

The table below shows the composition of the income taxes between deferred and current taxes:

(Euro thousands)	H1 2023	H1 2022
Current income taxes	10,132	4,767
Deferred tax (income)/charge	(1,147)	589
Total	8,985	5,356

OTHER INFORMATION

Earnings per share

The share capital of Zignago Vetro SpA at 30 June 2023 consists of 89,263,080 ordinary shares with a par value of Euro 0.10 each, fully subscribed and paid-in.

As outlined in the first part of this report Zignago Vetro SpA, in execution of its buy-back programmes, at 30 June 2023 held a total of 589,998 treasury shares for a total value of Euro 4.8 million. In the first half of 2023 and until the approval of this Half-Year Financial Report, treasury shares worth Euro 2 million were purchased (128,644 shares).

Information is shown below concerning the results for the period and the calculation of the basic and diluted earnings per share:

	Values at 30.06.2023	Values at 30.06.2022
Profit attributed to ordinary shareholders of the Parent for the basic earnings and the diluted earnings per share (in Euro thousands)	74,636	31,088
Average weighted number of ordinary shares, including treasury shares, for earnings per share	89,263,080	88,896,500
Weighted average number of treasury shares	(589,998)	(369,175)
Weighted average number of ordinary shares, excluding treasury shares, to calculate basic earnings per share	88,673,082	88,527,325
Earnings per share
- basic, for profit attributed to the ordinary shareholders of the parent	0.842	0.351
- diluted, for profit attributed to the ordinary shareholders of the parent	0.836	0.350

The basic earnings per share is calculated by dividing the profit attributable to the ordinary shareholders of the parent by the average weighted number of ordinary shares outstanding during the period, excluding the average weighted number of treasury shares.

No capital transactions which would have dilutive effects on the profits attributable to each share were noted.

Segment disclosure

Segment reporting which coincides with the various legal entities is provided below. The information on the secondary segment (geographic area) is not significant in relation to the Group. In particular, the Business Units identified are reported at pages 8 and 9.

The criteria applied for the identification of the segment reporting were based on, among other issues, the manner in which management directs the Group and attributes managerial responsibility. The segment disclosure is provided below:

(Euro thousands)				H1 2023
	Zignago	Zignago Vetro	Zignago Vetro	Zignago Glass	Vetro	Italian Glass	Consolidation	Consolidated
	Vetro SpA	Brosse SAS	Polska S.A.	USA Inc.	Revet Srl		Moulds Srl Adjustments
Revenues	213,895	41,777	48,172	1,159	9,057	2,130	(29,649)	286,541
Amortisation and depreciation	(20,479)	(2,722)	(3,965)	(1)	(241)	(519)	(72)	(27,999)
Operating result	44,498	(233)	11,405	84	481	(475)	31,186	86,946
Net Result	56,613	(370)	9,862	58	377	(322)	8,418	74,636
Assets	392,878	42,337	51,479	875	6,992	2,925	15,189	512,675
Liabilities	596,036	58,478	93,542	878	14,660	10,543	14,441	788,578
Investments in:
Intangible assets	749	654	361	0	1	204	0	1,969
Property, plant & equipment	202,409	15,487	41,702	3	7,667	7,414	(748)	273,934

(Euro thousands)					H1 2022
	Zignago	Zignago Vetro	Zignago Vetro	Zignago Glass	Vetro	Consolidation	Consolidated
	Vetro SpA	Brosse SAS	Polska S.A.	USA Inc.	Revet Srl	Adjustments
Revenues	165,241	26,958	36,068	759	6,124	(15,346)	219,804
Amortisation and	(17,039)	(2,364)	(4,199)	(2)	(238)	(4)	(23,846)
depreciation Operating result	10,894	1,307	2,958	138	357	15,358	31,012
Net Result	26,483	775	1,858	132	315	1,525	31,088
Assets	338,161	37,833	33,763	664	6,016	5,401	421,838
Liabilities	552,778	58,733	76,938	669	13,840	4,353	707,311
Investments in:
Intangible assets	1,411	185	446	0	3	0	2,045
Property, plant & equipment	213,206	20,715	42,729	5	7,821	(1,048)	283,428

Related party transactions

In accordance with Consob letter 6064293 of 28 July 2006, related party transactions are reported below. The table below shows the composition of the receivables of the Zignago Vetro Group with related party companies at the reporting date:

(Euro thousands)	Balance at 30.06.2023	Balance at 31.12.2022	Balance at 30.06.2022
Zignago Holding SpA	3	6,554	5,329
Santa Margherita SpA and its subsidiaries	1,281	826	2,047
Zignago Servizi Srl	5	0	4
Zignago Power Srl	238	238	239
La Vecchia Scarl	0	0
Multitecno Srl	4	4	4
Total receivables from related companies	1,531	7,622	7,623

The receivables from Zignago Holding SpA relate to the repayment of taxes for previous years, in relation to the Group tax consolidation, while the receivables from Santa Margherita and its subsidiaries derive from commercial operations.

The table below shows the composition of the payables of the Zignago Vetro Group with related party companies at the balance sheet date:

(Euro thousands)	Balance at	Balance at	Balance at
	30.06.2023	31.12.2022	30.06.2022
Zignago Power Srl	1,811	2,820	1,956
Zignago Servizi Srl	671	442	656
Santa Margherita SpA and its subsidiaries	170	93	131
Zignago Holding SpA	5,465	170	95
La Vecchia Scarl	109	216	97
Zignago Immobiliare Srl	44	62	29
Multitecno Srl	0	0	22
Total payables to related companies	8,270	3,803	2,986

The payables to Zignago Immobiliare Srl, La Vecchia Scarl and Zignago Servizi Srl are related to services received.

The payables to Zignago Power Srl relate to the purchase of electricity.

The table below shows the composition of the revenues of the Zignago Vetro Group from related parties in the period:

(Euro thousands)	H1 2023	H1 2022
Santa Margherita SpA and its subsidiaries	3,894	6,524
Zignago Immobiliare Srl	1	19
La Vecchia Scarl	0	1
Multitecno Srl	18	17
Zignago Power Srl	395	395
Zignago Servizi Srl	24	23
Zignago Holding Spa	12	12
Total revenues from related parties	4,344	6,991

The revenues from Santa Margherita SpA and its subsidiaries derive from commercial operations and from the sale of a warehouse for Euro 2.4 million. Zignago Power's revenues relate to an internal electricity supply agreement.

The table below shows the composition of the costs of the Zignago Vetro Group from related parties in the period:

(Euro thousands)	H1 2023	H1 2022
Zignago Power Srl	11,926	12,043
Zignago Servizi Srl	1,641	1,619
Zignago Holding SpA	309	232
La Vecchia Scarl	245	224
Santa Margherita SpA and its subsidiaries	314	175
Zignago Immobiliare Srl	1,357	1,017
Multitecno Srl	7	17
Costs capitalised for fixed asset acquisition
Zignago Power Srl	0	0
Zignago Immobiliare Srl	0	0
Santa Margherita SpA and its subsidiaries	0	0
Total costs from related companies	15,799	15,327

Stock option plan

The consolidated half-year financial statements at 30 June 2023 reflect the Stock Option Plan amounts, whose Regulation was approved by the Board of Directors of the company on 26 July 2019, and the 2022- 2024 Performance Shares Plan, approved on 21 June 2022.

The Stock Option Plan stipulates:

• that the options shall be exercised by the deadline of 31 December 2024
• a vesting period begins on the grant date and concludes on the maturity date
• the exercise price of these options is Euro 7.275 and permits the subscription to shares in the ratio of 1 ordinary share for each option exercised;
• the fair value of the Plan was estimated at the grant date using the Black-Scholes method, based on the following parameters:
• share price at the option assignment date of Euro 9.81;
• estimated life of the options equal to the period from the grant date to the estimated exercise date;
• forecast dividend yield 4%;
• unitary fair value Euro 2.07.

At 30 June 2023, 1,319,996 options had been granted, of which 1,263,080 exercised and 56,916 exercisable. The effects on the H1 2023 income statement were Euro 226 thousand, while in H1 2022 totalling Euro 344 thousand.

The Performance Shares plan approved by the Board of Directors on 21 June 2022 and approved by the Shareholders' Meeting on 28 July 2022 stipulates:

• a vesting period from 1 January 2022 to 31.12.2024;
• a maximum number of grantable shares of 109,500;
• the granting of Rights to Beneficiaries to receive free of charge treasury shares held by the Company is subject to the achievement of the following objectives:
• three targets related to the Zignago Vetro Group's operating-financial performance in the medium to long term with a combined weighting of 75%;
• three targets related to ESG issues with a total weighting of 25%:
• the unitary fair value at 29 July 2022 of Euro 12.38
• 20% of the allocated Shares will then be subject to a two-year Holding Period, during which they may not be subject to Transfer
• the effect on the income statement and equity at 30 June 2023 is Euro 226 thousand (at 30 June 2022 amounting to Euro 246 thousand).

As per IFRS 2, the plan outlined above is defined as Equity Settled.

Management of capital

The share capital includes the shares and the equity attributable to owners of the parent.

The primary capital management objective of the Group is to guarantee the maintenance of a strong credit rating in order to support operations and to maximise value for shareholders.

In order to achieve this objective, the management of Group capital aims, among other matters, to ensure compliance with covenants, related to interest bearing loans, based on financial performance indicators. Breaches in the covenants would permit the banks to request immediate repayment of the loans. There were no breaches of the covenants in the current year in relation to interest bearing loans for any of the Group companies.

The Zignago Vetro Group has payables to financial intermediaries and has a financial debt position related to the business development plan. The high generation of operating cash flows enables Group Companies not only to repay existing loans, but also to guarantee an adequate dividend to Shareholders and pursue a growth strategy.

In this context, the Group, in order to maintain or amend the capital structure, may pay dividends to Shareholders, acquire treasury shares on the market or issue new shares.

No substantial amendments were made to these objectives, to policies or to processes in the first half of 2022 and 2021 or for the year 2021.

Risk management policies

The Group will continue to prudently manage risks in all departments with careful monitoring in order to identify, reduce and eliminate such risk, therefore extensively protecting shareholder interests.

Currency risk

The currency risk is the risk that the fair value or the future cash flows of a financial instrument are altered following changes in exchange rates.

The exposure of the Group to changes in exchange rates principally concerns the operating activities of the Group (when revenues and costs are denominated in a currency other than the presentation currency of the Group).

Where these transactions are significant, the Group Companies assess the possibility of undertaking currency hedges in order to mitigate these fluctuations. During the period, the parent company entered into currency hedging transactions to hedge against the risk of exchange rate fluctuations; this is however an exception as the transactions entered into by Group companies in the non-functional currency are considered fundamentally insignificant.

Credit and country risks

The credit risk represents the exposure of the Group to potential losses deriving from non-compliance with obligations by trading partners; this activity is subject to ongoing monitoring within the normal management of business operations, in order to minimise the exposure to "counterparty" credit risk, also utilising appropriate insurance instruments to protect the solvency of the client or of the country risk in which this latter operates.

The Group Companies constantly assess political, social and economic risks in the areas in which they operate. No significant cases of non-fulfilment by trading partners have occurred and no significant credit risk by individual area and/or client exists.

The Group in fact only deals with established and reliable clients. Customers that request extensions of payment are subject to a credit rating check. Moreover, the collection of receivables is monitored during the year so that the exposure to losses is not substantial. Finally, in the case of new clients operating in non-EU countries, the Group companies obtain letters of credit and advance payments.

Interest rate risk

The interest rate risk is a risk that the fair value of the future cash streams of a financial instrument alters due to changes in market interest rates. The Companies of the Group are exposed to the risk of fluctuations in interest rates principally in relation to the non-current bank loans and borrowings, negotiated at floating interest rates, and amount to Euro 274 million. Where these risks are considered significant, the Companies of the Group undertake interest rate swaps in order to convert the floating rate of the non-current loans into fixed rates, which reduces the impact of the fluctuations in interest rates

Therefore, the Parent and Zignago Vetro Polska undertook interest rate swaps in order to hedge the interest rate risk on medium-long term loans for a notional value of Euro 163 million.

Risks related to the fluctuation in energy prices

The Group is exposed to fluctuations in energy purchase costs, a significant cost component in the glass sector. Where this risk is considered as significant, hedging operations may be undertaken in order to convert the variable cost into a fixed cost, which reduces the impact of fluctuations.

The supply of energy at Fossalta di Portogruaro of the Parent has been guaranteed by Zignago Power Srl, a company wholly-owned by the parent Zignago Holding SpA., which started up a natural biomass energy production plant. The risk concerning energy cost fluctuation is therefore greatly reduced.

In the first half of 2023, Zignago Vetro SpA had in place commodity swap contracts to hedge against fluctuations in energy factors.

The characteristics of the derivative contracts, their notional value and the market value at 30 June 2023, are as follows (in Euro):

Company	Underlying	Notional	Maturity	Market
		at the		value at
		reporting date		30.06.2023
Zignago Vetro SpA	Loan hedges - IRS	154,199,437	Beyond 12 months	9,348,172
Zignago Vetro SpA	Loan hedges - IRS	6,318,907	Within 12 months	135,839
Zignago Vetro SpA	Commodity hedges	7,825,173	Within 12 months	(575,866)
Zignago Vetro SpA	Foreign currency hedges	1,991,139	Within 12 months	170,473
Zignago Vetro Polska	Loan hedges - IRS	1,680,120	Within 12 months	92,640
Zignago Vetro Polska	Foreign currency hedges	10,820,000	Within 12 months	413,794
Total		182,834,776		9,585,052

Liquidity risk

The Group monitors the risk of a deficiency in liquidity utilising liquidity planning instruments. The Group objective is to maintain a balance between continuity of available funds, flexibility of utilisation through utilisation of instruments such as bank overdrafts, bank loans, finance leases and adequate remuneration of its liquidity, temporarily investing exclusively with banking counterparties.

In particular the profile of the financial liabilities at 30 June 2023, 31 December 2022 and 30 June 2022 on the basis of the non-discounted contractual payments, including trade payables and other current liabilities, is summarised as follows:

(Euro thousands)	30 June 2023
	Less than 3 months	From 3 to 12 months	From 1 to 5 years	Beyond	Total
Non-current loans and borrowings	0	0	205,570	0	205,570
Other non-current liabilities	0	0	5,635	0	5,635
Bank loans & borrowings and current portion of medium/long-term loans
	18,116	74,682	(576)	0	92,222
Trade and other payables	99,319	0	0	0	99,319
Other current liabilities	32,194	0	0	0	32,194
Current tax payables	0	1,906	0	0	1,906
Total	149,629	76,588	210,629	0	436,846

(Euro thousands)	30 June 2022
	Less than 3 months	From 3 to 12 months	From 1 to 5 years	Beyond	Total
Non-current loans and borrowings	0	0	201,548	0	201,548
Other non-current liabilities	0	0	1,255	0	1,255
Bank loans & borrowings and current portion of medium/long-term loans
	26,753	87,933	(6,579)	0	108,107
Trade and other payables	94,728	0	0	0	94,728
Other current liabilities	24,973	0	0	0	24,973
Current tax payables	0	3,927	0	0	3,927
Total	146,454	91,860	196,224	0	434,538

(Euro thousands)	31 December 2022
	Less than 3 months	From 3 to 12 months	From 1 to 5 years	Beyond	Total
Non-current loans and borrowings	0	0	226,324	0	226,324
Other non-current liabilities	0	0	6,246	0	6,246
Bank loans & borrowings and current portion of medium/long-term loans
	32,746	77,715	0	0	110,461
Trade and other payables	105,977	0	0	0	105,977
Other current liabilities	24,556	0	0	0	24,556
Current tax payables	0	523	0	0	523
Total	163,279	78,238	232,570	0	474,087

The terms and conditions of financial liabilities are listed below:

• There is no interest on trade payables and they are normally paid at 60 days;
• Other payables are normally paid within the month following recognition.

Support and subsidy measures

In the first half of 2023, against rising energy procurement costs, the parent availed of Government supports in the form of a tax credit.

Significant non-recurring events or transactions arising from atypical and/or unusual transactions

There were no significant non-recurring atypical and/or unusual transactions for the period ended 30 June 2023 as defined by Consob Communication DEM/6064293.

Statement as per Article 81-ter, CONSOB Regulation No. 11971/1999

Statement of the Condensed Interim Consolidated Financial Statements as per Article 81-ter of CONSOB Regulation No. 11971 of 14 May 1999 and subsequent modifications and integrations.

• 1) The undersigned Roberto Cardini, CEO, and Roberto Celot, Executive Officer for Financial Reporting of Zignago Vetro SpA, also in consideration of Article 154-bis, paragraphs 3 and 4, of Legislative Decree No. 58 of 24 February 1998 state:
• the accuracy of the information on company operations and
• the effective application,

of the administrative and accounting procedures for the condensed interim consolidated financial statements for the period from 1 January to 30 June 2023.

• 2) No significant aspect emerged concerning the above. The adequacy of the administrative and accounting procedures for the compilation of the condensed consolidated half-year financial statements at 30 June 2023 was evaluated through an Internal Control System based on the Internal Control – Integrated Framework model issued by the Committee of Sponsoring Organisations of the Treadway Commission which represents a standard framework generally accepted at international level.
• 3) We also declare that:
• 3.1) The condensed interim consolidated financial statements:
  • a) are drawn up in conformity with the applicable international accounting standards endorsed by the European Union in conformity with Regulation (EC) No. 1606/2002 of the European Parliament and the Commission of 19 July 2002;
  • b) corresponds to the underlying accounting documents and records;
  • c) provide a true and fair view of the financial position, financial performance and cash flows of the issuer and of the other companies in the consolidation scope.
• 3.2) The Directors' Report on operations includes a reliable analysis of the significant events in the first six months of the year and their impact on the condensed interim consolidated financial statements, with a description of the principal risks and uncertainties for the remaining six months. It also presents a reliable analysis of the significant transactions with related parties.

Fossalta di Portogruaro, 28 July 2023

Mr. Roberto Cardini Mr. Roberto Celot Chief Executive Officer Executive Officer for

Financial Reporting

Independent Auditors' Report on the Condensed Interim Consolidated Financial Statements

The attached auditors' report and the related condensed interim 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 it-fmauditaly@kpmg.it PEC kpmgspa@pec.kpmg.it

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

Report on review of condensed interim consolidated financial statements

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

Introduction

We have reviewed the accompanying condensed interim consolidated financial statements of the Zignago Vetro Group comprising the statement of financial position, income statement, statement of comprehensive income, statement of cash flows, statement of changes in equity and notes thereto, as at and for the six months ended 30 June 2023. The parent's directors are responsible for the preparation of these condensed interim consolidated financial statements in accordance with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union. Our responsibility is to express a conclusion on these condensed interim consolidated financial statements based on our review.

Scope of Review

We conducted our review in accordance with Consob (the Italian Commission for Listed Companies and the Stock Exchange) guidelines set out in Consob resolution no. 10867 dated 31 July 1997. A review of condensed interim consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the condensed interim consolidated financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed interim consolidated financial statements of the Zignago Vetro Group as at and for the six months ended 30 June 2023 have not been prepared, in all material respects, in accordance with the International

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Financial Reporting Standard applicable to interim financial reporting (IAS 34), endorsed by the European Union.

Padua, 4 August 2023

KPMG S.p.A.

(signed on the original)

Sara Zambon Director of Audit Interim Directors' Report

ZIGNAGO VETRO S.p.A. Registered office: Fossalta di Portogruaro (VE), Via Ita Marzotto 8