The Board of Directors of Isagro S.p.A. approves 2020 financial results

Date:03-17-2021

The Board of Directors of Isagro S.p.A. approved the Drafted Financial Statements as of December 31^st, 2020, which will be made available to the public following the terms and the modalities of the applicable Laws.

2020 consolidated data

The 2020 consolidated data, which reflect the sale of Fluindapyr and the acquisition of Phoenix-Del (both completed in October) but do not still incorporate the “full year” effects of the initiatives of organizational efficiency recovery (which will continue in 2021 and will generate full contribution from 2022), highlight:

• Revenues from Agropharma and Services growing by 5% to 110.3 Euro million vs. 105.4 million of 2019 (the latter including 3.1 Euro million of revenues from M/L Agreements, activity discontinued in 2020);

• an EBITDA before extraordinary Incomes positive for 3.8 Euro million vs. the negative value of 2.6
  million of 2019;

• an EBITDA positive for 34.1 Euro million (of which 30.3 Euro million related to the capital gain realized with the sale of Fluindapyr in October 2020) vs. the negative value of 2.6 million of 2019;

• a Net result positive for 16.2 Euro million vs. the loss of 13.9 million of 2019;

• a Net financial position at credit (cash) for 21.4 Euro million (vs. the Net financial position at debt for 34.4 Euro million as of December 31^st, 2019), of which 4.2 Euro million due to the application of the accounting principle IFRS 16-Leases, and a debt/equity ratio of -0.20. Excluding the amount linked to IFRS 16, the Net financial position as at December 31^st, 2020 would be equal to 25.6 Euro million cash, with a debt/equity ratio of -0.24.
  

With reference to the 2020 variation of Revenues from Agropharma and Services vs. 2019, the higher sales are attributable to higher revenues achieved outside Italy and mainly in the Americas and Middle East and Africa, especially in the “Bio-Copper” segment, and, to a lower extent, to deltamethrin-based formulations. Isagro, with reference to the global critical situation due to the Covid-19 pandemic, has not experienced specific pressures in terms of lower sales on its product/customer segments.

The positive variation of EBITDA of 2020 vs. 2019 is attributable, on top of the higher margins from sales, also to an important reduction in fixed and R,I&D costs related to organic chemicals (which overall have led to savings in the period of 4.4 Euro million), which more than offset the lower margins related to Revenues from M/L Agreements for 3.1 Euro million (as said, present in 2019 but absent in 2020).

2020 parent company Isagro S.p.A. data

With reference to 2020 results of Isagro S.p.A., they are represented by:

• Revenues from Agropharma and Services equal to 92.2 Euro million vs. 94.7 million of 2019 (the latter included 3.1 Euro million of revenues from M/L Agreements, activity discontinued in 2020);

• an EBITDA of 29.5 Euro million (of which 30.0 Euro million relating to the capital gain realized with the sale of Fluindapyr in October 2020) vs. the negative value of 3.2 million of 2019;

• a Net result in profit for 14.1 Euro million vs. the profit of 17.2 million of 2019. It shall be highlighted that the profit of 2020 will be allocated as follows: (i) to the Legal Reserve for 0.5 Euro million and (ii) to “Retained earnings” for 13.6 Euro million to be posted, pursuant to Article 24 of the By-Laws, in a specific Equity Reserve. Furthermore, part of the Legal Reserve will be restricted, for 1.9 Euro million, following the realignment operation ex Article 110 of Legislative Decree 104/2020;

• an Equity of 107.5 Euro million vs. the value of 93.9 million as at December 31^st, 2019;

• a Net financial position at credit (cash) for 19.5 Euro million (vs. the Net financial position at debt of 30.4 Euro million as of December 31^st, 2019), of which 3.9 Euro million due to the application of the accounting principle IFRS 16-Leases, and a debt/equity ratio of -0.18. Excluding the amount linked to IFRS 16, the Net financial position as of December 31^st, 2020 would be equal to 23.4 Euro million cash, with a debt/equity ratio of -0.22.
  

Perspectives

Isagro expects the recovery and growth of turnover started in 2020 to continue in 2021. The Net Financial Position is still expected at credit at the end of 2021, before further acquisitions, strongly pursued.

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