SAES Getters : The Board of Directors approved the consolidated results of the first quarter of 2017

PRESS RELEASE

• Consolidated revenues equal to €58.7 million, up by 28.5% compared to €45.7 million in Q1 2016
• Total revenues of the Group equal to €62.1 million, up by 29.6% compared to €47.9 million in Q1 2016
• Consolidated gross profit equal to €24.9 million, up by 24.2% compared to €20 million in Q1 2016
• Consolidated operating income equal to €9.5 million, significantly increased (+46.5%) compared to €6.5 million in Q1 2016
• Consolidated EBITDA equal to €11.8 million (or 20.1%) compared to €8.5 million (or 18.7%) in Q1 2016
• Adjusted EBITDA equal to €12 million (or 20.4% of consolidated revenues)
• Consolidated net income equal to €5.8 million, almost doubled when compared to €3 million in Q1 2016
• Net financial position significantly improved (-€25.2 million compared to -€33.8 million at the end of 2016)

The Board of Directors of SAES Getters S.p.A., gathered today in Lainate (MI), approved the consolidated results of the first quarter of 2017 (January 1 - March 31).

"There is a strong satisfaction for the results of the first quarter of 2017, that confirm the positive trend of the previous year and are in line with our expectations" - Eng. Massimo della Porta, President of SAES Getters S.p.A. said. - "We expect to maintain such trend and results also in the next quarters, in which we will be deeply committed to the development of the new business initiatives".

In the first quarter of 2017 the SAES® Group achieved consolidated net revenues equal to €58.7 million, up by 28.5% compared to the figure of the first quarter of 2016, equal to €45.7 million. The exchange rate effect was equal to

+3.5%, mainly thanks to the strengthening of the US dollar against the euro. Considering the same scope of consolidation, the organic growth amounted to +17.6%, while the acquisition of Metalvuoto S.p.A., completed at the end of last year, generated in the first quarter of 2017 revenues equal to €3.4 million (+7.4% was the increase in revenues related to the change in the scope of consolidation).

The organic growth was mainly concentrated in the gas purification sector (Systems for Gas Purification & Handling Business), driven by the investments in China for new semiconductor fabs, as well as in the sector of Nitinol for medical devices (Nitinol for Medical Devices Business) confirming the positive trend of the previous year.

1 Total revenues of the Group are achieved by incorporating with the proportional method, instead of the equity method, the 50% joint venture Actuator Solutions and the joint venture SAES RIAL Vacuum S.r.l., of which SAES owns 49% of the share capital.

The strong growth of consolidated revenues enabled the increase (+24.2%) of the consolidated gross profit2, equal to

€24.9 million in the first quarter of 2017, compared to €20 million in the corresponding period of 2016. The gross margin3 was equal to 42.4%, slightly decreased compared to 43.9% in the first quarter of 2016, due to the dilution following the consolidation of the newly acquired Metalvuoto S.p.A., currently characterized by a different structure of production variable costs compared to that of the traditional perimeter of the Group.

By excluding the non recurring costs (around €0.2 million) for severance and for the retention plan addressed to strategic employees of Memry GmbH, whose liquidation was announced at the end of 2016, the adjusted EBITDA5 was equal to €12 million in the first quarter of 2017 ( 20.4% of consolidated revenues).

The net financial position as at March 31, 2017 was equal to -€25.2 million, showing a significant improvement compared to the end of 2016 (-€33.8 million) thanks to the positive trend of the operating activities, as well as to the reabsorption of the net working capital, mainly in the gas purification sector, although the level of the net working capital remains high, to support the growth expected in the next months.

For further details, please refer to the following sections of this press release.

Relevant events occurred in the first quarter of 2017

On January 10, 2017 the company Flexterra Taiwan Corporation Ltd., wholly owned by Flexterra, Inc. (USA), was established. The new company is headquartered in Zhubey City (Taiwan).

On January 20, February 13 and March 20, 2017 SAES Nitinol S.r.l. paid three further tranches (equal to €1 million each) of the total financing of €4.5 million in favor of the joint venture Actuator Solutions GmbH, on the basis of the loan agreement signed on November 28, 2016.

Changes in the Business structure organization

Following the acquisition of the control of Metalvuoto S.p.A., a significant player in the advanced packaging field, occurred at the end of 2016, a third Business Unit named "Solutions for Advanced Packaging" was established, in order to ensure a better information transparency.

Finally, please note the new segmentation of the Industrial Application Business Unit and the re-naming of some already existing operating segments, to better comply with the new organizational structure of the Group.

2 Calculated as the difference between net sales and industrial costs directly and indirectly attributable to the products sold.

3 Calculated as the ratio between gross profit and consolidated revenues.

4 EBITDA is not deemed as an accounting measure under International Financial Reporting Standards (IFRSs); however, we believe that EBITDA is an important parameter for measuring the Group's performance and therefore it is presented as an alternative indicator. Since its calculation is not regulated by applicable accounting standards, the method applied by the Group may not be homogeneous with the ones adopted by other Groups. EBITDA is calculated as "Earnings before interests, taxes, depreciation and amortization".

5 Adjusted EBITDA is meant to be the EBITDA itself, further adjusted to exclude non recurring items or anyway considered as not indicating the

current operating performance by the Management. As its calculation is not ruled by the IFRS principles, the method applied by the Group may be not homogeneous, and so far not comparable, with the ones applied by other Groups.

The figures related to 2016 were reclassified on the basis of the new organizational structure, to allow a homogeneous comparison with the current year.

Industrial Applications Business Unit

The trend of the euro against the major foreign currencies led to a positive exchange rate effect equal to +3.7%, net of which revenues organically increased by 22.9%.

The growth was mainly driven by the gas purification sector (Systems for Gas Purification & Handling Business), which recorded an organic growth of 41.9%, thanks to the investments in new semiconductors and displays fabs in Asia (particularly in China, Korea and Taiwan). The Electronic Devices Business also showed a growth (organic growth equal to +37%), thanks to higher sales of both film getters and traditional getters, favored by the more and more increasing penetration of the infrared technology for surveillance and industrial applications (such as monitoring of thermal dispersions and thermal regulation).

All the other sectors showed a substantial stability compared to the previous year, excluding the thermal insulation segment (Thermal Insulation Business) and the lamps segment (Getters & Dispensers for Lamps Business). In the former one, the decrease was mainly due to the weakness in the sales of insulation panels for the refrigeration market and of getters for vacuum bottles for the consumer market. The second one still recorded a structural decrease, in line with the last periods of 2016, due to the technological competition of LEDs towards fluorescent lamps.

The table below shows the revenues in the first quarter of 2017 related to the various business areas, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2016.

Thousands of euro (except %)

As a percentage of revenues, the gross margin decreased from 48.1% to 45.6%, penalized by a product mix with an increased absorption of raw materials, mainly in the sector of vacuum pumps. The gross margin of lamps business also decreased, in line with the already mentioned structural decrease in sales. All the other segments recorded a substantially stable gross margin.

Shape Memory Alloys (SMA) Business Unit

Compared to the first quarter of the previous year, the Nitinol for Medical Devices Business recorded an organic growth of 12.1%, in line with the trend of the previous year.

Instead, the Industrial SMAs segment (SMAs for Thermal and Electro Mechanical Devices Business) recorded an organic decrease (-10.7%), due to a temporary slow down in the sales of the luxury goods segment.

The table below shows the revenues in the first quarter of 2017 related to the various business areas, with evidence of the exchange rate effect and of the organic change compared to the corresponding period of 2016.

Thousands of euro (except %)

Solutions for Advanced Packaging Business Unit

The newly established "Solutions for Advanced Packaging Business Unit", which mainly comprises the newly acquired Metalvuoto S.p.A., recorded revenues equal to €3.4 million in the first quarter of 2017.

The first quarter of 2017 ended substantially in operating breakeven.