Isagro S p A : , BOD APPROVES 1Q 2021 FINANCIAL RESULTS

PRESS RELEASE

ISAGRO BOD APPROVES THE QUARTERLY RESULTS AS OF MARCH 31ST, 2021

• Revenues from Agropharma and Services: +37% vs. 1Q 2020 (49.3 Euro million vs. 35.9 Euro million)
• EBITDA adjusted (excl. effect of conditions precedent): positive for 7.9 Euro million vs. 4.3 million of 1Q 2020
• Consolidated EBITDA: positive for 5.6 Euro million (vs. the 1Q 2020 value of 4.3 million)
• Net result: profit of 2.4 Euro million (vs. the 1Q 2020 value of 0.6 million)
• Net Financial Position: net cash equal to 17.6 Euro million (vs. the net cash of 21.4 million as of December 31st, 2020 and the NFP at debt as of March 31st, 2020 of 39.4 million)

Milan, May 13th, 2021 - The Board of Directors of Isagro S.p.A. approved today the Consolidated Interim Result Report as of March 31st, 2021, which will be made available to the public following the terms and the modalities of the applicable Laws.

New business model of Isagro and integration in Gowan Group

Starting from the second half of 2019 and throughout 2020, Isagro actively worked at the implementation of its new business model, today fully operating even if not yet completed, implying a specific focus on the development of market positions and products/formulations related to "Bio-Copper" (i.e. products of biological/natural origin and copper-based products, the latter ones belonging to inorganic chemicals), also through acquisitions financed through the divestment of no longer strategic assets. This led to an important turning point in the financial structure of Isagro starting from October 2020, with e Net financial position as of March 31st, 2021 at credit for 17.6 Euro million (value already net of 2.3 Euro million attributable to the accounting principle IFRS 16). At the same time, the Group is experiencing an increasing phase of its turnover, which in the first quarter of 2021 grew by 37% vs. 1Q 2020: this led to a Net Result which, excluding the extraordinary items relating to the disposal of assets linked to countries under embargo by the United States government, moved from the value of 0.6 Euro million in 1Q 2020 to the value of 4.7 Euro million in 1Q 2021 (equal to 2.4 million net of the extraordinary items). In fact, regarding the above, it shall be remembered that on March 6th, 2021 Piemme S.r.l.'s Shareholders (company that indirectly holds, through the sub holding Holdisa S.r.l., the majority of Ordinary Shares of Isagro S.p.A.) signed a binding Agreement with Gowan (current minority shareholder of Holdisa, holding 49% of capital stock), to sell their quotas in Piemme and Ordinary and Growth Shares of Isagro to Gowan itself, with Closing to take place on May 14, 2021. Following such change of control Growth Shares shall be converted into Ordinary Shares in the ratio 1:1 and Gowan will run a mandatory tender offer at 2.76 euro per share, with a subsequent delisting of Isagro.

The above transaction and the related valorization of Isagro represent a recognition of the important work carried out by Group's management in particular in the last two years and of the fact, repeatedly brought to the attention of the Market, that the past stock prices underestimated the real value of Isagro.

It is believed that the integration of Isagro Group within the Gowan Group will bring numerous benefits in terms of synergies and enhancement of skills and know-how of Isagro itself.

1Q 2021 consolidated dataIn 1Q 2021, Isagro registered:

• Revenues from Agropharma and Services growing by 37% to 49.3 Euro million vs. 35.9 million of 1Q 2020;
• an EBITDA adjusted, i.e., excluding the non-recurring allowances related to the implementation of the conditions precedent, positive for 7.9 Euro million vs. the value of 4.3 million of 1Q 2020;
• a Consolidated EBITDA positive for 5.6 Euro million vs. the value of 4.3 million of 1Q 2020;
• a Net result positive for 2.4 Euro million vs. the profit of 0.6 million of 1Q 2020;
• a Net financial position at credit (cash) for 17.6 Euro million (vs. the Net cash of 21.4 Euro million as of December 31st, 2020 and the Net financial position at debt for 39.4 Euro million as of March 31st, 2020), of which 2.3 Euro million due to the application of the accounting principle IFRS 16-Leases, and a debt/equity ratio of -0.16. Excluding the amount linked to IFRS 16, the Net financial position as at March 31st, 2021 would be equal to 19.9 Euro million cash, with a debt/equity ratio of -0.18.

With reference to the variation of Revenues from Agropharma and Services vs. 1Q 2020, the higher sales of 1Q 2021 are mainly attributable to higher revenues achieved in copper, tetraconazole, delthametrine and biostimulants segments in the areas of EMEA, South America and South-East Asia. 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.

Perspectives

Isagro expects the recovery and growth of turnover started in 2020 to continue in 2021, with a Net Financial Position at credit at year-end.

Other information

• The Manager charged with preparing the company's financial reports, Ruggero Gambini, hereby certifies, pursuant to Article 154-bis, paragraph 2 of the Consolidated Law on Finance, that the financial information in this press release is consistent with the entries in the accounting books and records.

About Isagro

Isagro S.p.A., an independent company born in 1993 with Montecatini/Montedison origin, is listed on the Milan Stock Exchange since 2003. Initially based on the discovery and development of new chemical molecules, the last one being Fluindapyr, the Company leads today a Group offering agricultural solutions at low environmental impact, with a growth project focused on products of biological/natural origin and copper-based products as part of its new business model aimed also at capitalizing on the current product portfolio qualified for an integrated crop management.

In 2014 Isagro issued Growth Shares, an innovative category of special shares specifically conceived for companies having a Controlling Subject. Main characteristics of Growth Shares are the absence of voting rights, an extra-dividend vs. Ordinary Shares (20% in the case of Isagro) and the automatic conversion into Ordinary Shares in the ratio 1:1 in any case of loss of controlling stake by the Controlling Subject and/or of Mandatory Tender Offer.

	For more information:
Ruggero Gambini	Erjola Alushaj
Chief Financial Officer	Group Financial Planning &
Tel. [phone]	Coordination and IR Manager
	Tel. [phone]
www.isagro.com	[e-mail]

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CONSOLIDATED PROFIT & LOSS STATEMENT AS OF MARCH 31ST, 2021

	1° Quarter	1° Quarter	Differences	Year
(€ 000)	2021	2020	2020
Revenues from sales and services	49,288	35,869	+13,419	+37.4%	110,327
Other revenues and incomes	128	310	-182		1,629
Consumption of materials and external services	(32,231)	(26,572)	-5,659		(86,311)
Variations in inventories of products	(3,958)	553	-4,511		1,340
Costs capitalized for internal works	508	265	+243		1,500
Allowances and provisions	(2,519)	(349)	-2,170		(2,119)
Labor costs	(5,332)	(5,625)	+293		(21,651)
Bonus accruals	(244)	(158)	-86		(946)
EBITDA before non-recurring Incomes	5,640	4,293	+1,347		3,769
Non-recurring incomes	-	-	-		30,331
EBITDA	5,640	4,293	+1,347	+31.4%	34,100
% on Revenues	11.4%	12.0%			3.4%
Depreciation and amortization:
- tangible assets	(658)	(615)	-43		(2,430)
- intangible assets	(1,283)	(1,621)	+338		(5,911)
- right-of-use asset IFRS 16	(206)	(197)	-9		(793)
- write-down of tangible and intangible assets	(58)	(3)	-55		(1,044)
EBIT	3,435	1,857	+1,578	+85.0%	23,922
% on Revenues	7.0%	5.2%			21.7%
Interests, fees and financial discounts	(91)	(284)	+193		(990)
Exchange losses and derivatives	(90)	(360)	+270		(716)
Result before taxes	3,254	1,213	+2,041	N/S	22,216
Current and deferred taxes	(829)	(619)	-210		(6,267)
Net result of continuing operations	2,425	594	+1,831	N/S	15,949
Net result of discontinued operations	-	-	-		202
Net result	2,425	594	+1,831	N/S	16,151

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CONSOLIDATED BALANCE SHEET AS OF MARCH 31ST, 2021

(€ 000)	Mar. 31, 2021	Dec. 31, 2020	Differences	Mar. 31, 2020
Net fixed assets
Goodwill	4,128	4,181	-53		2,879
Other intangible assets	20,827	21,063	-236		46,477
Tangible assets	14,901	15,157	-256		15,213
Right-of-use asset IFRS 16	2,196	4,091	-1,895		4,367
Financial assets	3,724	3,140	+584		2,611
Other medium/long terms assets and liabilities	1,899	1,990	-91		6,983
Total net fixed assets	47,675	49,622	-1,947	-3.9%	78,530
Net current assets
Inventories	36,495	39,553	-3,058		40,171
Trade receivables	48,227	23,871	+24,356		36,624
Trade payables	(35,920)	(24,206)	-11,714		(29,012)
Subtotal Net working capital	48,802	39,218	+9,584		47,783
Current risk funds	(1,848)	(2,164)	+316		(1,721)
Other current assets and liabilities	(2,036)	(595)	-1,441		5,646
Subtotal Other assets and liabilities	(3,884)	(2,759)	-1,125		3,925
Total net current assets	44,918	36,459	+8,459	+23.2%	51,708
Invested capital	92,593	86,081	+6,512	+7.6%	130,238
Severance Indemnity Fund (S.I.F.)	(1,537)	(1,546)	+9	-0.6%	(1,730)
Net invested capital	91,056	84,535	+6,521	+7.7%	128,508
Total	91,056	84,535	+6,521	+7.7%	128,508
financed by:
Equity
Capital stock	24,961	24,961	-		24,961
Reserves and retained earnings	83,176	66,599	+16,577		65,375
Translation adjustment reserve	(1,885)	(1,799)	-86		(1,776)
Profit of the Group	2,425	16,151	-13,726		594
Total equity	108,677	105,912	+2,765	+2.6%	89,154
Net financial position
Medium/long term debts:
- due to banks	2,320	2,319	+1		25,942
- due to other lenders	814	814	-		1,135
- financial liabilities ex IFRS 16	1,589	3,481	-1,892		3,606
- other financial liabilities/(assets), IRS and trading	(2,503)	(2,503)	-		(2,467)
derivatives
Total medium/long terms financial debts	2,220	4,111	-1,891	-46.0%	28,216
Short-term debts:
- due to banks	2,744	5,293	-2,549		26,834
- due to other lenders	247	320	-73		319
- financial liabilities ex IFRS 16	715	761	-46		865
- other financial liabilities/(assets), IRS and trading	(99)	34	-133		(85)
derivatives
Total short-term financial debts	3,607	6,408	-2,801	-43.7%	27,933
Cash and cash equivalents	(23,448)	(31,896)	+8,448	-26.5%	(16,795)
Total net financial position	(17,621)	(21,377)	+3,756	-17.6%	39,354
Total	91,056	84,535	+6,521	+7.7%	128,508

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CONSOLIDATED CASH-FLOW STATEMENT OF JANUARY-MARCH 2021

(€ 000)	March 31,	March 31,
2021	2020
Cash and cash equivalents (as of January 1st)	31,896	46,581
Operating activities
Net profit of continuing operations	2,425	594
- Depreciation of tangible, intangible assets and right-of-use IFRS 16	2,214	2,493
- Losses in value of tangible and intangible assets	58	3
- Provisions to reserves (including employee indemnity)	244	160
- Provisions to incentive and retention plan	91	38
Subtotal Cash-Flow	5,032	3,288
- Net change in net current assets	(9,771)	(7,318)
- Net change in other assets/liabilities	1,301	480
- Use of funds (including employee indemnity)	(593)	(356)
Cash-flow for operating activities	(4,031)	(3,906)
Investment activities
- Investments in intangible assets	(1,105)	(720)
- Investments in tangible assets	(404)	(256)
- Cash-flow generated from the sale of discontinued operations	38	-
Cash-flow for investment activities	(1,471)	(976)
Financing activities
- Decrease in financial debts (current and non-current)	(2,978)	(24,976)
- Increase in financial receivables, derivatives and
other financial liabilities (current and non-current)	(166)	(1,178)
Cash-flow for financing activities	(3,144)	(26,154)
Translation adjustments changes	198	1,250
Cash-flow of the period	(8,448)	(29,786)
Cash-closing balance (as of March 31st)	23,448	16,795

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