Svas Biosana S p A : Approval of the financial statements at 31 December 2022

PRESS RELEASE

THE BOARD OF DIRECTORS OF SVAS BIOSANA APPROVES

THE FINANCIAL STATEMENTS AND THE CONSOLIDATED FINANCIAL STATEMENTS AT 31

DECEMBER 2022

THE GROUP CONSOLIDATES ITS GROWTH TREND AND STRENGTHENS

ITS COMPETITIVE POSITION IN THE MARKET

SVAS APPROVES THE ALLOCATION OF THE PROFIT FOR THE YEAR AND

CALLS THE ORDINARY SHAREHOLDERS' MEETING

• Consolidated Revenues: €97.2 million (+19.9% YoY)
• Consolidated1 EBITDA: €11.9 million (+11.7% YoY); EBITDA Margin: 12.2%
• Consolidated EBIT: €6.3 million (+8.4% YoY); EBIT Margin 6.4%
• Consolidated Net Profit: €3.6 million, up 13.0% on 2021
• Group Net Financial Position (NFP) cash negative for €21.7 million (cash negative for €17.0 million in 2021)

Somma Vesuviana (Naples) 14 April 2023 - Svas Biosana S.p.A., (the "Group" or "SVAS"), a leading player in the production and distribution of medical devices for public and private healthcare facilities, and listed on Euronext Growth Milan, a multilateral trading system organised and managed by Borsa Italiana S.p.A. which focuses on small and medium-sized companies with high growth potential, unveils that the Board of Directors met today to examine and approve the consolidated financial statements and the financial statements at 31 December 2022 to be submitted to the Shareholders convened in an Ordinary Meeting on 16 May 2023 on first call and, if necessary, on second call on 17 May.

According to Umberto Perillo, CEO of Svas Biosana: "2022 was a very challenging year for the Group due to the well-known geopolitical events, the generalised increase in costs and supply chain bottlenecks. However,

1 EBITDA (Earnings Before Interest Taxes Depreciation and Amortisation or gross operating profit (loss)) is the profit (loss) before financial income and expenses, income taxes, accruals, amortisation and depreciation of fixed assets and write-down of receivables. EBITDA is the indicator used by the Group to monitor and assess the operating performance of the business. EBITDA is not identified as an accounting measure under the Italian reporting standards. Therefore, it is not to be considered as an alternative measure for assessing the Group's operating performance. As the composition of EBITDA is not regulated by the relevant reporting standards, the calculation criteria applied by the Group may differ from those adopted by other entities and, therefore, may not be comparable with them.

Specifically, the largest increase in revenues was achieved by the Mark Medical business unit (marketing of specialised medical devices in Eastern Europe), which contributed €32.8 million (+20% on 2021).

The SVAS business unit (marketing of medical devices, specialities and commodities in Italy) recorded revenues of €20.7 million, up 12% YoY.

The Farmex business unit (production and marketing of incontinence aids and cotton products) grew 7% on 2021, with revenues of €29.6 million.

The Medical business unit (production and marketing of medical devices, custom packs and advanced dressings) contributed €9.2 million, up 8% on 2021.

Finally, in the second half of 2022, the Bormia business unit earned revenues of €6.6 million, accounting for 7% of total turnover.

Geographically speaking, 60% of revenues (+9% on 2021) were generated in Italy and 40% abroad (+43% on 2021), confirming the Group's good international standing.

Production revenues amount to €102.3 million, up 25.5% YoY compared to €81.5 million in 2021.

EBITDA (gross operating profit) amount to €11.9 million, up by 11.7% on €10.6 million in 2021, with an EBITDA margin of 12.2% on revenues.

EBIT (operating profit) amount to €6.3 million, up by 8.4% on €5.8 million in 2021, with an EBIT margin of 6.4% on revenues.

The net profit for the year amounts to €3.6 million (up 13.0% from €3.2 million in 2021).

The net financial position is cash negative for €21.7 million compared to €17.0 million at 31 December 2021. This figure must be considered in the light of the acquisition of Bormia d.o.o. in 2022.

Shareholders' equity amounts to €54.5 million, up €3.5 million on €51.0 million at 31 December 2021.

Financial Statements of the Parent

Sales revenues amount to €55.4 million, up 7.8% on €51.4 million in 2021.

Production revenues amount to €60.4 million, up 16.9% on €51.7 million for 2021.

EBITDA (gross operating profit) amount to €5.9 million, down 2.2% on €6.0 million in 2021, with an EBITDA margin of 10.6% on revenues.

EBIT (operating profit) amounts to €2.2 million, down 20.6% on €2.8 million in 2021), with an EBIT margin of 4% on revenues.

The net profit for the year amounts to €0.8 million (down 28.8% from €1.1 million in 2021). The decrease in the net profit for the year and the main profitability indicators is due to the sharp increase in the cost of raw materials and energy, partly offset by the greater efficiency of the general structure and production facilities and by the decision to accrue a €0.3 million provision for the risk related to the Payback scheme for the medical devices sector, which was activated in 2022 with retroactive effect for the 2015-2018 period.

The net financial position is cash negative for €16.9 million compared to €10.5 million at 31 December 2021. This figure must be considered in the light of the acquisition of Bormia d.o.o. in 2022.

Shareholders' equity amounts to €44.8 million, up €0.7 million on €44.1 million at 31 December 2021.

PROPOSED ALLOCATION OF THE NET PROFIT FOR THE YEAR AND PART OF THE AVAILABLE RESERVES

The Board of Directors resolved to propose that the shareholders allocate the net profit for the year of €760,842 as follows:

• €722,800 to the extraordinary reserve
• €38,042 to the legal reserve

KEY EVENTS OF THE YEAR

• On 7 January 2022, Banca Profilo S.p.A. and Illimity Bank S.p.A., as Joint Global Coordinator, fully exercised the Greenshoe option granted by Agrinvest S.r.l. to purchase 240,000 shares, accounting for 15% of the shares covered by the private placement.
• On 14 April 2022, the Board of Directors decided to launch the buyback programme for its own shares in compliance with the rules set out by the supervisory authorities, assigning this task to Banca Profilo S.p.A.. The shareholders approved the buyback programme on 19 November 2021 for a maximum amount of €2,000,000 and a duration of 18 months.
• The closing of the acquisition of Bormia d.o.o. ("Bormia") took place on 23 June 2022. Bormia distributes specialised medical devices to leading public and private customers in the Slovenian, Croatian, Serbian and Bosnian health care systems. The acquisition took place through Levante HC Holding, a wholly- owned subsidiary of Svas Biosana S.p.A., and was effective on 1 July 2022.

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

Nothing to report.

OUTLOOK

The macroeconomic outlook for the economic activity and inflation remains highly uncertain and depends crucially on the evolution of the Russian-Ukrainian conflict, the impact of the sanctions currently in place and possible further measures.

Asian is a source of some concern with respect to Taiwan and, more in general, with China's foreign policy stance which appears more active than in the past.

The disruptions currently affecting the supply of energy and raw materials and the negative effects on confidence caused by the conflict are expected to be temporary, with no significant impacts on global supply chains.

The public health emergency caused by the outbreak of the Covid pandemic now seems of little concern. The characteristics of the current variants and the massive vaccination campaign have considerably reduced the effects on economic activities and people's health. All economic activities have resumed their normal pace and expectations are very positive in general.

The growth recorded in the previous year continued in the first few months of 2023. Therefore, under the current conditions, the Group expects to continue developing both its commercial and business activities. Furthermore, it is confident of and firmly committed to its plans for 2023, both in terms of turnover and investments focusing on growth.

PROPOSED ASSIGNMENT OF THE ENGAGEMENT FOR THE STATUTORY AUDIT OF THE FINANCIAL STATEMENTS

Further to the expiry of the engagement - effective as of the approval of the financial statements at 31 December 2022 - assigned to PricewaterhouseCoopers S.p.A. to audit the Group's financial statements for the 2020-2022three-year period, at the next Ordinary Shareholders' Meeting, the Board of Directors will propose, based on the Board of Statutory Auditors' reasoned proposal, re-assigning the audit engagement to PricewaterhouseCoopers S.p.A. as per the engagement letter received from this company.

The engagement will cover the statutory audit of the Group's financial statements and consolidated financial statements as at and for the years ending 31 December 2023, 2024 and 2025.

CALLING OF THE ORDINARY SHAREHOLDERS' MEETING

The Board of Directors resolved to call the Ordinary Shareholders' Meeting in first call on 16 May 2023 and, if necessary, in second call on 17 May 2023 at the times and places that will be communicated in the notice of call to be published in accordance with the procedures and terms of law and the Articles of Association.

The notice of call of the Shareholders' Meeting will also indicate the procedures for participation in the meeting, with a view in particular to fulfilling the needs of the current emergency situation, its continuation, and in accordance with the provisions of the regulations currently in force.

* * * * * *

The annual financial report comprising the financial statements, the consolidated financial statements, the accompanying management reports, the reports of the independent auditors and the reports of the Board

of Statutory Auditors will be made available to the public, within the terms of the law, at the Group's

registered office and on the website www.svas.itin the Investor Relations/Financial Reports section, at the Italian Stock Exchange and on the eMarketSDIR storage mechanism (www.emarketstorage.com) within the terms provided for by applicable law. Any additional necessary documentation and information about the shareholders' meeting will also be made available on the company's website.

* * * * * *

The audit of the financial statements and the consolidated financial statements at 31 December 2022 is still in progress. Consequently, the reports of the independent auditors will be made available within the legal deadlines. Finally, the attached profit and loss accounts and balance sheets are reclassified and, as such, are not subject to audit.

* * * * * *

This press release can be found at Borsa Italiana, at the Group's registered office, and in the Investor Relations/Releases section of the website www.svas.it.

Svas Biosana uses the eMarket SDIR system, managed by Teleborsa S.r.l., with registered office at Piazza di Priscilla 4, 00199, Rome (www.emarketstorage.com), to disclose regulated information.