GVS S p A : approves consolidated results to 30 June 2021 revenues up 29.7%, EBITDA margin at 37.9%

PRESS RELEASE

GVS APPROVES CONSOLIDATED RESULTS TO 30 JUNE 2021

REVENUES UP 29.7%, EBITDA MARGIN AT 37.9%

GVS Group KPIs for the first six months of 2021 compared to the same period in 2020:

• Revenues of 189.7 million euro, up 29.7% compared to 146.3 million euro;
• Adjusted EBITDA1 amounted to 71.9 million euro (+30.4%) compared to 55.1 million euro, with 37.9% margin on revenues. EBITDA amounted to 71.6 million euro (+44.1%) compared to 49.7 million euro, with 37.7% margin on revenues;
• Adjusted EBIT2 amounted to 63.1 million euro (+31.7%) compared to 47.9 million euro, with 33.3% margin on revenues. EBIT amounted to 61.0 million euro (+50.6%) compared to 40.5 million euro, with 32.2% margin on revenues;
• Adjusted Net Profit3 was 50.0 million euro (+52.7%) compared to 32.7 million euro. Net Profit was 48.2 million euro (+78.3%) compared to 27.0 million euro;
• Positive Net Financial Position of 30.1 million euro compared to a positive position of 31.6 million euro at 31 December 2020.

Zola Predosa (BO), 10 September 2021 - The Board of Directors of GVS S.p.A., a leading provider of advanced filtration solutions for highly critical applications, met today in Zola Predosa (BO) and approved the consolidated results at 30 June 2021, which have been prepared in accordance with IFRS international accounting standards.

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Massimo Scagliarini, CEO of GVS, commented: "The results achieved in the first half of 2021 are further confirmation of the quality of the work done and the growth opportunities we have seized by preparing early for the expected acceleration in the Healthcare & Life Sciences division. The first six months showed substantial revenue growth compared to the same period last year, driven mainly by this division. The next few months will see us engaged in the integration process with the RPB Group, specialised in the design and production of SAR and PAPR respiratory protection, acquired last August. Growth through acquisitions and the expansion of distribution centres will be central to our development strategy and, as always, our objective will be to anticipate trends in order to be ready to compete successfully on the reference markets".

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1 This indicates the period result (EBITDA) adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as residual expenses relating to the IPO and costs of relocating the production site in England.

2 This indicates the period result (EBIT) adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses relating to the IPO, costs of relocating the production site in England and the amortisation of intangible assets recognised at the time of the PPA. 3 Indicates the net period result adjusted for operating income and expenses which, by nature, are reasonably expected not to recur in future periods, linked, in particular, to the sale of the Chinese plant in Suzhou and the relocation of the same production site as well as expenses relating to the IPO, costs of relocating the production site in England and the amortisation of intangible assets recognised at the time of the PPA, net of related tax effects.

ANALYSIS OF THE GROUP'S ECONOMICS

At 30 June 2021, GVS achieved consolidated revenues of 189.7 million euro, up 29.7% compared to the 146.3 million euro recorded in the same period of 2020.

The strong increase in sales is attributable to the growth of the Healthcare & Life Sciences division, not only due to the confirmation of the growth of the "Healthcare Air & Gas" business, but also for the resumption of a sustained growth trend in the "Laboratory" business and the "Healthcare Liquid" business which, in addition, benefit from the effects of the acquisitions completed in 2020.

The Energy & Mobility division shows a growth rate of 26.2% compared to the same period in 2020, mainly for the "Safety & Electronics" and "Sport & Utility" businesses, thus confirming the return to a pre-pandemic level of orders. At the same time, "Personal Safety" and the "Healthcare Air & Gas" business maintained excellent sales figures, despite the expected decline in products affected by healthcare emergencies and the delay in the transition from disposable products to products less linked to emergencies.

In terms of performance and breakdown of revenues from contracts with customers at 30 June 2021:

• the Healthcare & Life Sciences division, which accounts for 49.6% of the total, grew by approximately 38.4% compared to the same period of 2020;
• the Energy & Mobility division, which accounts for 20.5% of the total, recorded an increase of approximately 26.2% compared to the same period of 2020;
• the Health & Safety division, which accounts for 29.9% of the total, rose by approximately 19.4% compared to the same period of 2020.

Adjusted EBITDA1 is 71.9 million euro (+30.4%) compared to 55.1 million euro at 30 June 2020, and shows a margin on revenues of 37.9% compared to 37.7% in the first six months of 2020. This increase, on a like-for-like profitability basis, is the result of higher volumes and a positive sales mix. EBITDA amounted to 71.6 million euro (+44.1%) compared to 49.7 million euro, with 37.7% margin on revenues.

Adjusted EBIT2 was 63.1 million euro (+31.7%) compared to 47.9 million euro in the same period of the previous year, with a 33.3% margin on sales compared to 32.8% in the first six months of 2020, despite the increase of 1.6 million euro in depreciation and amortisation compared to the same period of the previous year, mainly due to the acceleration of the investment plans made by the Group in 2020, to cope with the necessary increase in production capacity. EBIT amounted to 61.0 million euro (+50.6%) compared to 40.5 million euro, with 32.2% margin on revenues.

Net financial expense (net of foreign exchange gains and losses) amounted to approximately 1.1 million euro, registering a decrease of approximately 0.8 million euro with respect to the same period of the previous year, primarily due to the reduction in interest on loans following the decrease in residual debt and the closing and signing of new loans at more advantageous economic conditions in the second half of 2020.

The Adjusted Net Result3 was 50.0 million euro, up from 32.7 million euro in the first six months of 2020. Net Profit was 48.2 million euro (+78.3%) compared to 27.0 million euro in the same period of 2020.

The Net Financial Position at 30 June 2021 was a positive 30.1 million euro, compared to 31.6 million euro at 31 December 2020.The net change of 1.5 million euro is mainly due to the combined effect

of cash generated from operations net of capital expenditures and cash used to pay dividends and financial expenses.

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SIGNIFICANT EVENTS OCCURRING IN THE FIRST HALF OF 2021.

In January 2021, the subsidiary GVS Technology (Suzhou) Co. Ltd. transferred ownership of its production site in Suzhou to the Chinese Public Authority, recording an extraordinary capital gain of approximately 1.91 million euro. At the same time, while on the one hand contributions obtained from the Chinese government for the relocation of the same production site amounting to 0.21 million euro were recorded in the consolidated income statement, on the other, a provision was made for charges for the relocation of the same plant for 0.92 million euro. According to the agreements reached, in fact, the company will continue to operate there, free of charge, until relocation to a new production site is completed. The timing of the investment in the new production site and the transfer of production and warehousing will be agreed between the parties at a later date, in order to avoid any break in the production and marketing of products.

The period ended 30 June 2021 was still very severely impacted by the Covid-19 (commonly known as "Coronavirus") pandemic. Continuing on from last year, the Group has continued to adopt organisational measures and procedures to ensure the continuation of production and management activities, so as to guarantee compliance with the commitments with its customers, in full respect of the health of its employees and collaborators.

SUBSEQUENT EVENTS

On 28 July 2021, the Board of Directors approved the sale of the equity investment in GVS Patrimonio immobiliare Srl, held by GVS Microfiltrazione, to GVS Real Estate Srl. This transaction will be financed by GVS Real Estate Srl, which will pay the sale price and provide GVS Patrimonio Immobiliare with the amount necessary to extinguish its current debt position with GVS S.p.A.

On 31 August 2021, the GVS Group acquired 100% of the share capital of the RPB Group specialising in the design and manufacture of respiratory protection, including compressed air respirators and air-purifying powered respirators. In particular, GVS NA Holding Inc. (100% owned by GVS S.p.A.) has acquired 100% of the share capital of the American companies Goodman Brands LLC and Abretec Group LLC, while GVS S.p.A. has acquired 100% of the share capital of RPB Safety Limited (a New Zealand company). The purchase price was set at a maximum of 194.4 million dollar. The transaction provides for an upfront payment of approximately 150 million dollar for the acquisition of 100% of the share capital, and a possible earn-out of 44.4 million dollar (maximum value), the payment of which, expected in 2022, will be proportionally related to the achievement of the RPB Group's 2021 adjusted EBITDA targets. In order to finance the operation, GVS has signed a 5-year loan agreement for 150 million euro with a pool of lending banks: Mediobanca - Banca di Credito Finanziario S.p.A., which also acts as agent, Unicredit S.p.A. and Crédit Agricole Italia S.p.A.

BUSINESS OUTLOOK

For the remainder of 2021, the GVS Group will continue to work on an organic consolidation of the results obtained to date thanks to a rebalancing of the product portfolio mix that will allow it to

consolidate the extraordinary growth recorded in 2020 and in the first half of 2021, maintaining a high focus on timeliness in responding to the demands of the market and of its clients with an increasing sensitivity to the active management of ESG issues. Following the results of the first half of 2021 and, depending on the amount of revenue from contracts with customers already achieved and the order backlog acquired to date, current expectations for the year-end are in a range of 340 - 350 million euro, including the 4-month contribution from RPB, acquired on 31 August 2021, which will offset part of the delay due to a slower transition of the Health & Safety division compared to initial forecasts. The EBITDA margin achieved in the first half of 2021 is expected to trend towards normalisation in the second half, with the overall result expected to be in the range of 32 to 35%. The above forecasts are linked to orders already in the portfolio and contracts under negotiation for all divisions, in a scenario of progressive normalisation of the effects of the pandemic and positive impact of the vaccination policies of the various countries. As a result, the expected level of revenues is supported by all the Group's divisions: Healthcare & Life Sciences, Health & Safety and Energy & Mobility. Due to the uncertainty connected with the occurrence of any future event, it cannot be excluded that there may be deviations, even significant, between the actual values and the above- mentioned values.

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DECLARATION PURSUANT TO ART. 154-BIS, PARAGRAPH TWO OF THE CONSOLIDATED LAW ON INTERMEDIATION (TUF) The Manager responsible for preparing the company's financial reports, Emanuele Stanco, declares, pursuant to Article 154-bis,second paragraph of Legislative Decree 58/98, that the accounting information contained in this press release corresponds to the results in the Company's documents, books and accounting records.

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CONFERENCE CALL

Financial results for the first six months of 2021 will be presented on Friday 10 September at 16:30 CET during a conference call held by the Group's Senior Management.

The conference call can be followed in webcast mode by connecting through the following URL https://87399.choruscall.eu/links/gvs210910.html

As an alternative to the webcast mode, you can participate in the conference call by calling one of the following numbers:

ITALY: [phone]

UK: + 44 121 281 8003

USA: [phone]

The presentation given by the Senior Management will be available before the beginning of the conference call on the authorised storage mechanism eMarket SDIR, managed by Spafid SpA, as well as on the Company's website www.gvs.com (in the Investor Relations/Financial Presentations section).

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The Interim Consolidated Financial Statements at 30 June 2021 will be made available to the public at the Company's registered office and at Borsa Italiana, as well as on the website www.gvs.com"Investor Relations/Financial Statements" in accordance with the law.

This press release is available on the regulated information dissemination system eMarket SDIR, managed by Spafid SpA, as well as on the Company's website www.gvs.com(in the Investor Relations/Press releases section).

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GVS Group:

The GVS Group is one of the world's leading manufacturers of filter solutions for applications in the

Healthcare & Life Sciences, Energy & Mobility and Health & Safety sectors. In addition to the corporate office in Bologna, GVS currently has 15 plants in Italy, the United Kingdom, Brazil, the United States, China, Mexico, Romania and Puerto Rico and 18 sales offices located across the world. In the year ended 31 December 2020, the GVS Group recorded revenue from contracts with customers of 363 million euro and adjusted EBITDA of 144 million euro.

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Contacts

Investor Relations GVS S.p.A.

Mario Saccone [e-mail]

Francesca Cocco IR Consultant - Lerxi Consulting - [e-mail]

Media Relations

Image Building [e-mail]

[phone]