DIASORIN : BOARD OF DIRECTORS APPROVES FIRST HALF 2019 RESULTS. GROWTH IN REVENUES AND PROFITABILITY

DIASORIN BOARD OF DIRECTORS APPROVES FIRST HALF 2019 RESULTS

GROWTH IN REVENUES AND PROFITABILITY

FIRST HALF 2019 RESULTS

REVENUES: € 350.3 million, +5.8% (+3.7% at CER).

Acceleration in sales in Q2 2019 (+6.0% at CER), driven by CLIA panel, net of Vitamin D, (+13.2% at CER) and molecular diagnostics (+26.1% at CER). Positive impact of foreign exchange rates on sales amounting to about € 6.9 million.

EBITDA: € 139.3 million, +8.6% (+6.0% at CER), equal to 39.8% of Group revenues (39.6% at CER).

Result driven by the upward trend in the Gross Profit, following a sharp increase in the sale of specialty tests and the favorable channel mix, with higher revenues in countries where the Group has a direct presence versus countries where the Group operates through third-party distributors.

EBIT: € 110.2 million, +7.0%, equal to 31.5% of Group revenues.

NET PROFIT: € 84.0 million, +3.9%, equal to 24.0% of Group revenues.

NET FINANCIAL POSITION: +€ 62.0 million at June 30, 2019 (+€ 75.3 million at December 31, 2018). IFRS 16 first adoption led to a negative contribution equal to € 29.8 million; net of this effect, NFP would be positive by € 91.8 million, an increase of € 16.5 million compared to the balance at year-end 2018.

FREE CASH FLOW: € 69.5 million in H1 2019 (€ 69.2 million in H1 2018). It is worth to highlight the one-off exit tax impact on Q2 2019 following the divestment of the Irish business activities.

LIAISON/LIAISON XL: net placements of +212 units in H1 2019 (+250 LIAISON XL and -38 LIAISON), for an overall total of 8,061 units at June 30, 2019.

2019 GUIDANCE AT CER CONFIRMED:

 REVENUES: growth between 5.0% and 8.0%.

 EBITDA MARGIN: incidence on Group revenues comparable to 2018 EBITDA margin result.

1

Saluggia (Italy), July 31, 2019 - The Board of Directors of DiaSorin S.p.A. (FTSE MIB: DIA), a global leader in the production of diagnostic tests, meeting today in Saluggia under the Chairmanship of Mr. Gustavo Denegri, reviewed and approved H1 2019 consolidated economic and financial results.

Amounts in million of euros			H1			change
	2018		2019		amount	%	%
					@ current	@ CER
Revenues			331.2		350.3		+19.1	+5.8%	+3.7%
CLIA tests			217.2		236.6		+19.4	+9.0%	+7.1%
ELISA tests			46.1		48.2		+2.1	+4.6%	+2.7%
Molecular tests			29.3		30.8		+1.5	+5.1%	-0.9%
Instruments sales and other revenues		38.6		34.6		-4.0	-10.4%	-11.0%
EBITDA			128.2		139.3		+11.1	+8.6%	+6.0%
	EBITDA margin		38.7%		39.8%		+105 bps
EBIT			103.0		110.2		+7.2	+7.0%
	EBIT margin		31.1%		31.5%		+35 bps
Net profit			80.9		84.0		+3.1	+3.9%
Amounts in million of euros		Q2			change
2018		2019		am ount	%	%
					@ current	@ CER
Revenues			166.7		179.5		+12.8	+7.7%	+6.0%
CLIA tests			111.2		122.9		+11.7	+10.5%	+8.9%
ELISA tests			24.1	25.2	+1.0	+4.3%	+2.6%
Molecular tests			11.0	14.6	+3.6	+32.8%	+26.1%
Instruments sales and other revenues	20.3	16.8	-3.5	-17.4%	-17.2%
EBITDA			64.9		71.7		+6.9	+10.6%	+8.6%
	EBITDA margin	38.9%		40.0%		+105 bps
EBIT			52.3		57.2		+5.0	+9.5%
	EBIT margin	31.4%		31.9%		+52 bps
Net profit			42.5	43.6	+1.1	+2.5%

MAIN HIGHLIGHTS

PRESENTATION OF THE 2019-2022INDUSTRIAL PLAN: On June 11, 2019, DiaSorin presented its new Industrial Plan, outlining the strategic drivers over the next 4 years and providing its 2019-2022 guidance. Additional information is available in the Investor Relations section at www.diasoringroup.com.

BUSINESS DEVELOPMENT

 LIAISON XS: commercial presentation of the new CLIA analyzer available in the European market from the second half of 2019. LIAISON XS, which is planned to be launched within 2020 in the U.S. and 2021 in China, aims at expanding the Group commercial presence in small and medium-sized laboratories.

 COLLABORATION WITH QIAGEN: extension of the agreement on the use of QuantiFERON technology for the development of an innovative solution to diagnose Lyme disease in its early stage, as well as in the later stages of the infection, through the combined use of the test under development with those already existing in the DiaSorin CLIA catalogue.

PRODUCT DEVELOPMENT

 IMMUNODIAGNOSTICS: expansion of the anemia panel through the launch of Vitamin B12 and Folate tests and of the Gastrointestinal Infections panel through the launch of Elastase-1 in Europe and in the U.S..

 MOLECULAR DIAGNOSTICS: launch of VZV Direct Kit in the U.S. for the detection of Varicella-Zoster Virus (VZV) from cerebrospinal fluid.

2

COMMENT ON RESULTS

The foreign exchange market trend in H1'19 highlighted a depreciation of the Euro against the U.S. Dollar, Chinese Yuan, Mexican peso and British pound when compared to H1'18. Conversely, the Euro appreciated vis-à-vis the Brazilian real and Australian dollar.

Euro

CONSOLIDATE D REVENUES

U.S.	Brazilian	Chinese	Australian	Mexican		British
Dollar	Real	Yuan	Dollar	Peso		Pound
-6.7%	+4.8%	-0.5%	+2.0%	-6.2%		-0.7%
					Source: Banca d'Italia

Revenues: € 350.3 million in H1'19, +5.8% (+3.7% at CER) compared to H1'18.

Positive trend in CLIA sales, net of Vitamin D. Conversely, molecular diagnostics sales growth was negatively affected by Q1'19 flu test performance, as a result of an unfavorable comparison with the previous year, which was characterized by an exceptionally severe flu season. It should be noted that revenues from the other molecular tests recorded a growth of more than 30% in the period.

In H1'19, foreign exchange rates had a positive impact of about € 6.9 million on Group revenues. Sales trend as follows:

 CLIA tests, net of Vitamin D: +11.7% (+10.5% at CER)

 Vitamin D (CLIA): +1.0% (-2.6% at CER)

 ELISA tests: +4.6% (+2.7% at CER)

 Molecular tests: +5.1% (-0.9% at CER)

 Instruments sales and other revenues: -10.4%(-11.0% at CER)

Net balance of units installed in H1'19 was +212 units (+250 LIAISON XL and -38 LIAISON), increasing the total number of installed instruments to 8,061 units (of which 4,251 LIAISON XL, equal to ca. 53% of the total installed base).

Revenues in Q2'19 were € 179.5 million, +7.7% (+6.0% at CER) compared to Q2'18, as a result of the upward trend in CLIA sales, net of Vitamin D, and in molecular diagnostics, not affected by flu test seasonality and consequently recording a growth of more than 20% at CER.

In Q2'19, foreign exchange rates had a positive impact of about € 2.8 million on Group revenues. Sales trend as follows:

 CLIA tests, net of Vitamin D: +14.2% (+13.2% at constant exchange rates)

 Vitamin D (CLIA): +0,0% (-3.1% at CER)

 ELISA tests: +4.3% (+2.6% at CER)

 Molecular tests: +32.8% (+26.1% at CER)

 Instruments sales and other revenues: -17.4%(-17.2% at CER)

3

REVENUES BY GEOGRAPHY

The following provides the breakdown of the Group consolidated revenues by geographic area.

	Amounts in millions of euros		H1			Change	%
		2018		2019	amount
							@ current		@ CER
	Europe and Africa		156.2		164.3	+8.1	+5.2%		+5.1%
	%on total revenues		47.2%		46.9%
	USA and Canada		93.2		101.2	+8.0	+8.6%		+1.6%
	%on total revenues		28.1%		28.9%
	Asia Pacific		60.7		64.7	+4.0	+6.6%		+6.3%
	%on total revenues		18.3%		18.5%
	Latin America		21.2		20.0	-1.1	-5.3%		-5.2%
	%on total revenues		6.4%		5.7%
	Total		331.2		350.3	+19.1	+5.8%		+3.7%
	Amounts in million of euros			Q2			Change	%
		2018		2019	amount
						@ current		@ CER
	Europe and Africa		79.1		82.3	+3.2	+4.1%		+4.1%
	%on total revenues		47.4%		45.9%
	USA and Canada		44.9		52.4	+7.5	+16.7%		+10.1%
	%on total revenues		26.9%		29.2%
	Asia Pacific		32.0		34.2	+2.2	+6.9%		+7.4%
	%on total revenues		19.2%		19.0%
	Latin America		10.8		10.6	-0.1	-1.3%		-2.0%
	%on total revenues		6.5%		5.9%
	Total		166.7		179.5	+12.8	+7.7%		+6.0%

Europe and Africa

Revenues in H1'19 were € 164.3 million, +5.2% (+5.1% at CER) compared to H1'18, mainly due to the positive trend in CLIA sales.

In Q2'19, revenues were € 82.3 million, +4.1% (+4.1% at CER), driven by the contribution from all the main geographies.

 Italy:

H1: +21.6% (local market: +2.7%)1; growth driven by the upward trend in CLIA sales, primarily Latent Tuberculosis, PCT and Gastrointestinal Infections.

Q2: +20.4%.

 Germany:

H1: +0.7% (local market: -2.4%)1; growth of CLIA sales, primarily Gastrointestinal Infections, Infectious Diseases and Hepatitis, partially offset by lower ELISA sales.

Q2: +1.3%.

 France:

H1: -3.3% (local market -1.0%)1, mainly due to the introduction of new policies that limit the public reimbursement of some specialty tests and to lower ELISA sales.

Q2: -6.3%.

 Distributors:

H1: -21.8% at CER, mainly due to the seasonality of some tenders and lower instruments sales.

Q2: -19.3% at CER.

USA and Canada

Revenues in H1'19 were € 101.2 million, +8.6% (+1.6% at CER) versus H1'18.

Continued growth in revenues from immunodiagnostic sales, equal to +9.9% (+2.8% at CER): it is worth to highlight the outstanding CLIA performance, net of Vitamin D (low double-digits growth at CER), partly

1 Source: latest EDMA available data	4

offset by a decline in Vitamin D sales.

Positive contribution from molecular diagnostics business, +5.5% (-1.5% at CER), affected by the negative trend in sales of flu tests in Q1'19, resulting from a moderate season compared to the positive peak registered last year. Net of flu tests, molecular diagnostic sales recorded a growth of more than 20% at CER.

In Q2'19, revenues were € 52.4 million, +16.7% (+10.1% at CER) versus the prior year. Strong performance of both CLIA panel, net of Vitamin D (+20% at CER), and molecular tests (no longer affected by the negative impact deriving from flu tests seasonality).

Asia Pacific

Revenues in H1'19 were € 64.7 million, +6.6% (+6.3% at CER) on the back of the steady growth of CLIA sales in China and positive sales trend in Australia.

In Q2'19, revenues were € 34.2 million, +6.9% (+7.4% at CER).  China:

H1: +10.7% in local currency; growth in revenues from CLIA tests, primarily Hepatitis, Prenatal Screening and Infectious Diseases panels along with the positive performance of Thyroid test.

Q2: +7.1% in local currency (CLIA growing low double digits; lower instruments sales and slowdown in ELISA tests).

 Australia:

H1: +10.7% in local currency; growth driven by positive trend in CLIA sales, particularly Gastrointestinal Infections, Prenatal Screening and Infectious Diseases. Molecular kits and instruments sales confirmed an upward trend.

Q2: +10.6% in local currency.

Latin America

Revenues in H1'19 were € 20.0 million, -5.3%(-5.2% at CER) due to the Brazilian market performance and reduced instruments sales in countries served through third-party distributors.

Revenues in Q2'19 were € 10.6 million, -1.3%(-2,0% at CER) versus Q2'18.  Brazil:

H1: -8.2% in local currency; the result was negatively affected by the decline in Vitamin D and ELISA Murex sales.

Q2: -2.5% in local currency.  Mexico:

H1: +11.0% in local currency; positive contribution from CLIA sales, mainly Infectious Diseases, Hepatitis and Autoimmunity.

Q2: +6.9% in local currency.  Distributors:

H1: -9.0% at CER; mainly due to lower instruments sales.

Q2: -5.8% at CER.

5