SITI B&T S p A : Approval of the Draft Financial Statements and Consolidated Financial Statements of SITI B&T as at 31 December 2020

PRESS RELEASE

2020 results better than expected: ready to seize recovery opportunities

Approval of the Draft Financial Statements and Consolidated Financial Statements of SITI B&T as at 31 December 2020: revenues at 142 million, EBITDA at 11 million

Despite the pandemic and difficulties in the sector,

results were better than expected

Consolidated results

• Consolidated sales revenue of Euro 142.3 million, Euro 175.1 million in 2019
• Consolidated EBITDA of Euro 11.0 million, Euro 18.7 million in 2019
• Consolidated net loss of Euro 2.5 million, profit of Euro 3.1 million in 2019
• Consolidated Net Financial Position of Euro 54.8 million (Euro 59.1 million as at 31st December 2019); Euro 34.9 million excluding the effects of the application of IFRS 16
• Over Euro 5 million invested in R&D
• The Shareholders' Meeting convened for the approval of the 2020 Financial Statements in a single call on 30th April 2021.

Formigine (Modena), 31st March 2021 - The Board of Directors of SITI-B&TGroup S.p.A., a complete plant manufacturer serving the global ceramic industry, listed on the AIM Italia market (Ticker: SITI), approved the draft Annual Financial Statements today for the year ended 31st December 2020, prepared in accordance with national accounting standards, as well as the Consolidated Financial Statements for 2020 prepared in accordance with international accounting standards (IAS/IFRS).

Fabio Tarozzi, Chief Executive Officer of SITI-B&T Group, comments: "The year 2020 was an extraordinary year for everyone, in which our Group had

to bring out all its best qualities, human and professional alike, so that we could provide the market with our usual service and attention, even in the most difficult moments of the pandemic. The resilience demonstrated by our companies has allowed them to overcome the acute phase of the crisis with better than expected economic results and even achieve positive financial results, while waiting to seize the opportunities that the current recovery is offering."

KEY CONSOLIDATED RESULTS

The Value of Revenues at the end of 2020 amounted to Euro 142.3 million, down 18.8% compared to Euro 175.1 million in 2019. The extraordinary health crisis that hit 2020, which came after a 2019 that had recorded a negative economic situation for the entire ceramic machinery and equipment sector, squeezed volumes to an extraordinary degree. The recovery in orders in the second half of the year only partially offset the effects of the blockage in the first months of the year.

The direct presence on global markets with its network of service branches enabled the Group to maintain its market share and in particular to increase Customer Service revenue to Euro 65.8 million (+8.7%) (it was Euro 60.6 million in 2019).

Consolidated EBITDA was Euro 11.0 million (7.7% of sales revenue), compared to Euro 18.7 million in 2019 manifested the Group's resilience to adverse market conditions, thanks to fixed cost efficiencies.

The consolidated Operating Result (EBIT) at 31 December 2020 amounted to Euro 0.4 million, compared to Euro 8.5 million recorded in 2019.

The Consolidated Net Result for 2020 was a loss of Euro 2.5 million compared to Euro 3.1 million in the previous year (of which Euro 2.9 million pertaining to the Group).

The consolidated Net Financial Position at 31st December 2020 amounted to Euro 54.8 million compared to Euro 59.1 million at 31st December 2019 highlighting a cash generation of Euro 4.3 million, after investments of Euro 14.7 million, including the payment of the portion at closing of the Diatex shares for Euro 6 million.

Prior to the application of IFRS 16, the consolidated Net Financial Position was Euro 34.9 million compared to Euro 37.6 million at 31st December 2019.

RESEARCH AND DEVELOPMENT

Despite the extraordinary health crisis that forced the structure to work in smart working mode or in any case in difficult operating conditions for several months, the Group continued with determination and tenacity its R&D programmes with strategic projects in order to present the markets with technological solutions that stimulate demand and contribute to a solid recovery.

The development of technological innovations was made possible thanks to an R&D staff of more than 60 people and an investment of more than Euro 5 million in 2020, equal to 3.5% of turnover, of which Euro 2.7 million was spent during the year. Amortisation of capitalised development costs amounted to Euro 2.6 million in 2020. The Group currently holds about 200 industrial patents.

KEY RESULTS OF THE PARENT COMPANY SITI-B&T GROUP S.p.A.1

The Revenues of SITI-B&T GROUP S.p.A. for 2020 amounted to Euro 71.6 million, down from Euro 117.1 million in 2019.

The Net Result of SITI-B&T GROUP S.p.A. for 2020 was a loss of Euro 2.3 million compared to a profit of Euro 1.6 million in 2019.

EVENTS AFTER THE END OF THE FINANCIAL YEAR

In March 2021, the acquisition of 70% of the shares of Mec Abrasives s.r.l. was formalised, with operational headquarters in Verona, active in the production of abrasives for polishing ceramic products, for a total value of Euro 1.2 million. The investment was made in line with the growth strategy in the ceramic finishing sector.

ALLOCATION OF THE PROFIT FOR THE YEAR

The financial statements at 31st December 2020 of SITI-B&T GROUP S.p.A. show a loss of Euro 2.5 million, which the Company's Board of Directors will propose to the Shareholders' Meeting to carry forward.

1 It is noted that SITI-B&T Group S.p.A. prepares its financial statements pursuant to articles 2424-bis and 2425-bis of the Italian Civil Code, according to the national accounting standards issued by the OIC (Italian Accounting Board).

CALL OF THE ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING

The Board of Directors delegated the Chairman, Fabio Tarozzi, to proceed with the formalities for convening the Ordinary and Extraordinary Shareholders' Meeting in a single call for 30th April 2021 for the approval of the 2020 Financial Statements and the amendments to the Articles of Association, necessary to bring the Articles of Association into line with the provisions of the AIM Issuers' Regulations. The full notice of the Shareholders' Meeting will be made available to the public within the terms of the law, while the documentation relating to the items on the agenda will be made available to the public at the company's registered office and on the website www.sitibt.com.

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With reference to the accounting figures outlined in this press release, it is noted that the statutory audit of said figures has not been completed by the Independent Auditors. The draft financial statements at 31st December 2020 will be available within the statutory deadlines at the registered office.

SITI-B&T Group

SITI-B&TGroup, listed on the AIM Italia market since March 2016, a manufacturer of complete plants serving the global ceramics industry, with a widespread presence in all markets, offers excellent technological solutions and innovative services, with a particular focus on energy efficiency and respect for the environment. The SITI-B&T Group operates through the following operating units: "Tile" (complete plants for tiles), Projecta Engineering and Digital Design (digital decorators and graphic designs), Ancora (plants for the surface finishing of ceramic products), Diatex (cutting and grinding tools), "B&T White" (complete plants for sanitary ware) and "B&T Quartz" (complete lines for bonded quartz).

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ISIN Code Ordinary Shares IT0005171936 - Alphanumeric Code SITI

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RECLASSIFIED CONSOLIDATED INCOM E STATEM ENT (€/000)	12.31.2020	%	12.31.2019	%
Sales revenues	142.294	100,0%	175.150	100,0%
Change in inventory of finished products	(5.309)	-3,7%	2.991	1,7%
Other operating revenues	12.365	8,7%	8.977	5,1%
Operating revenues	149.350	105,0%	187.118	106,8%
Consum ption	70.487	49,5%	86.837	49,6%
Operating costs	67.879	47,7%	81.321	46,4%
EBITDA BEFORE NON-RECURRING EXPENSES	10.984	7,7%	18.960	10,8%
Non-recurring costs	-	0,0%	(280)	-0,2%
EBITDA	10.984	7,7%	18.680	10,7%
Write-downs and Revaluations	890		-
Depreciation/am ortization	10.514	7,4%	10.155	5,8%
EBIT	(420)	-0,3%	8.525	4,9%
Financial incom e and expenses	(2.840)	-2,0%	(2.508)	-1,4%
Adjustm ent to Fair Value of financial instrum ents	-		(559)
Incom e and expenses from trans. in foreign currency	(497)	-0,3%	342	0,2%
PROFIT BEFORE TAXES	(3.757)	-2,6%	5.800	3,3%
Incom e taxes	(1.228)		2.704
FY PROFIT (LOSS)	(2.529)	-1,8%	3.096	1,8%
M inorities' FY profit (loss)	(3)		149
GROUP PROFIT (LOSS)	(2.526)		2.947

RECLASSIFIED CONSOLIDATED BALANCE SHEET (€/000)	12.31.2020	%	12.31.2019	%
Trade receivables	72.252		77.053
Inventory	86.120		92.782
Other receivables	17.255		12.818
Trade payables	(51.576)		(64.568)
Other payables	(40.015)		(25.583)
Net Working Capital	84.036	60,6%	92.502	63,3%
Tangible assets	29.878		30.504
Intangible assets	30.237		24.529
Other non-current assets	2.978		2.568
Other non-current financial receivables	40		38
Fixed capital	63.133	45,5%	57.639	39,5%
TFR and other non-current liabilities	8.538		4.038
Net Invested Capital	138.631	100,0%	146.103	100,0%
Sources of Funding
Net Financial Debt	54.848	39,6%	59.138	40,5%
M inorities' shareholders' equity	734	0,5%	739	0,5%
Group shareholders' equity	83.049	59,9%	86.226	59,0%
Total financing sources	138.631	100,0%	146.103	100,0%