Bio-on board of directors approves Draft Budget and IAS/IFRS Consolidated Financial Statement at 31 December 2018

• Consolidated revenues of 51 million Euro at 31 December 2018 compared to 11 million Euro at 31 December 2017;
• EBITDA of 42 million Euro at 31 December 2018 compared to 7 million Euro at 31 December 2017;
• EBIT of 40 million Euro at 31 December 2018 compared to 6 million Euro at 31 December 2017;
• Net income of 12 million Euro at 31 December 2018 compared to 5 million Euro at 31 December 2017;
• Negative net financial position (debt) of 23 million Euro compared to 24 million Euro (assets) in 2017 and shareholders equity of 59 million Euro compared to 47 million Euro at 31 December 2017;

Bologna (Italy), 30 March 2019 – The board of directors of Bio-On S.p.A., listed on the AIM Italia market and operating in the high quality bioplastic sector that produces, conducts applied research and develops modern industrial biofermentation technologies in the field of new eco-sustainable and completely naturally biodegradable materials, which met on 30 March 2019, approved the draft budget and the IAS/IFRS Consolidated Financial Statement of the year ending 31 December 2018.

The value of production is 51 million Euro; the EBITDA is 42 million Euro and the net income is 12 million Euro.

The operative results, in net improvement on the previous year, are in line with the 2017-2020 industrial plan and reflect Bio-on's ability to execute clear strategies and make investments to boost its effects.

The main economic and financial data consolidated at 31 December 2018 is indicated below. Consolidated data is given as it does not shift significantly away from the values stated in the annual report of 31 December 2018.

Detail in thousands of Euro

The financial position data is as follows:

• Fixed assets 69,843 thousand Euro compared to 8,417 thousand Euro in 2017.
• Net working capital 13,152 thousand Euro compared to 15,761 thousand Euro in 2017.
• Net Invested Capital of 81,803 thousand Euro, inclusive of net working capital values of 13,152 thousand Euro, rose by 58,606 thousand Euro compared to 2017 data (23,197 thousand Euro) as a consequence of investments in fixed assets during the year.
• Group Shareholders Equity of 59,263 thousand Euro rose by 11,840 thousand Euro compared to 31 December 2017 (47,423 thousand Euro).
• The front-end net financial position at 31/12/2018 is positive (assets) by 830 thousand Euro, compared to a front-end net financial position at 31/12/2017 positive (assets) by 39,148 thousand Euro.

Of the results achieved in 2018, we highlight the performance of the EBITDA, which reaches approximately 42 million Euro and accounts for 83% of revenues, a considerable increase on the forecasts (approximately 50%, which is currently the minimum objective) confirming the company's outstanding performance. Debt (NFP) is temporarily higher than the plan values due to the effect of major and strategic investments made by the company in line with the implementation of its short-medium term plans.

Net income, up 87% on the previous year, did not rise in proportion to the higher revenues due to Bio-on's equity investment in special purpose vehicles (New.Co. in joint venture with sector leaders) founded during the year to develop the finished and speciality products market. Investing in the special purpose vehicles of international leaders in the various sectors in which Bio-on is expanding - from fertilisers to tobacco, cosmetics, organic electronics and food packaging - will drive the growth and affirmation on the market of new exclusive products, designed and made with Bio-on bioplastic.

The special purpose vehicles strategy will enable Bio-On's recurring revenues to rise thanks to the generation of running royalties which, in addition to earnings from licensing and product sales (of which 13 million already collected in the first quarter of 2019), will guarantee an economic return on the current investments already confirmed for 2019.

We also highlight that, in 2018, the company further strengthened its patents portfolio, considerably increasing the number of registrations.

This ongoing activity is the result of major investments in research and development, which are the solid foundation for industrial growth in the years to come. The company is adapting to this growth by increasing its staff numbers, which in 2018 tripled to 84, most of whom are employed at the new production plant at Castel San Pietro Terme (BO).

The board of directors, which proposed investing the year's profit in equity reserves, also states that it has appointed the Chairman to call the Ordinary Shareholders' Meeting at the Bio-on S.p.A. registered office for a combined meeting on 30 April 2019, to rule on the approval of the financial statement at 31 December 2018.

Significant events and operations occurring after 31 December 2018 include:

• The presentation by Unilever and Bio-on of "My Kai”, the new line of ultra-green sun creams, the world's first product created using cosmetic ingredients developed by Bio-on. Production of the innovative sun cream line was completed successfully in March (2019) and is sold by Unilever in various distribution channels (in-store and online) from spring 2019.

            This major milestone is the result of a strategic collaboration launched with Unilever in 2018, which also includes the launch of other products over the course of 2019.

• Start of work to expand the CNS laboratories (Cosmetics, Nanomedicine and Smart Materials) at the Castel San Pietro Terme industrial area.
• Start of preparations to expand production over the course of 2019 at the Castel San Pietro Terme industrial area.

The company's Draft Budget and Consolidated Financial Statement are subject to audit currently being completed and will be made available according to law at the registered office in Via Dante Alighieri 7/b, San Giorgio di Piano (BO), in Borsa Italiana SpA and in the Investor Relations section of the website www.bio-on.it, and will be subject to the approval of the Shareholders' Meeting to be held on 30 April 2019. This press release is available in the Investor Relations section of the company website www.bio-on.it. The summarised statement of financial position at 31 December 2018 and the reclassified income statement of the parent company Bio-on S.p.A. is attached.

                          Reclassified income statement

                        Reclassified balance sheet

Bio-on S.p.A.
Bio-on S.p.A. is an Italian Intellectual Property Company (IPC) operating on an international scale.  Listed on the AIM segment of Borsa Italiana since 2014, Bio-on licenses and manufacturers the world's most innovative bioplastics, conducting applied research and developing advanced bio-fermentation technologies, and cutting-edge natural and sustainable chemicals for the future. Bio-on's biopolymers, PHAs or polyhydroxyalkanoates, are made from renewable plant sources with no competition with food supply chains, including molasses and sugar beet and sugar cane syrups, fruit and potato waste, carbohydrates, glycerol, waste frying oil and even carbon dioxide in the atmosphere. Bio-on bioplastics, called Minerv PHAs, have the same thermo-mechanical properties as conventional oil-based plastics with the advantage of being completely eco-sustainable: 100% natural and 100% biodegradable, as certified by Vincotte and by USDA (United States Department of Agriculture). The great versatility of PHAs means Bio-on can produce Minerv PHAs bioplastic in microscopic dimensions to replace the invisible microbeads used in cosmetics products, in professional SLS 3D printers, fragrances, animal feed and many other applications. To promptly meet the exponentially rising and increasingly diversified demand, Bio-on, which is already working alongside big multinationals to develop alternatives to conventional plastics, operates through six Business Units: Bio-on Plants, RAF, Recovery And Fermentation, CNS (Cosmetic, Nanomedicine & Smart Materials), SMD (Structural Materials Developments), fdm (Fashion Development Material) and ENG (Engineering).

www.bio-on.it
Press information: Bio-on – Simona Vecchies - +39 335 1245190 press@bio-on.it – Twitter @BioOnBioplastic

Attachment

• CS_80_BIO-ON_30_03_2019_CDA_E_ok