Brembo S p A : H1 2021 RESULTS

Stezzano, 29 July 2021

BREMBO: H1 2021 REVENUES AT €1,360.8 MILLION, UP 43.1% (+46.5%

ON A LIKE-FOR-LIKE EXCHANGE RATE BASIS);

+2.8% COMPARED TO H1 2019.

Compared to H1 2020:

• Revenues amounted to €1,360.8 million (+43.1%)
• EBITDA at €270.2 million (EBITDA margin: 19.9%), EBIT at €165.8 million (EBIT margin: 12.2%)
• Net investments for the period amounted to €99.9 million
• Net financial debt €496.9 million (€290.2 million prior to the application of IFRS 16), down €100.6 million compared to 30 June 2020

H1 2021 results:

(€ million)	2021	2020	Change
Revenue	1,360.8	951.1	+43.1%
EBITDA	270.2	143.3	+88.6%
% of sales	19.9%	15.1%
EBIT	165.8	38.8	+327.4%
% of sales	12.2%	4.1%
Pre-tax profit	168.2	24.7	+581.7%
% of sales	12.4%	2.6%
Net profit	126.9	20.0	+536.0%
% of sales	9.3%	2.1%
	30.06.21	30.06.20	Change
Net financial	496.9	597.5	-100.6
debt
Net financial debt	290.2	407.2	-117.0
prior to IFRS 16
FTA

Brembo Chairman Alberto Bombassei stated:

"The results for the first half of 2021, approved today by the Board of Directors, consolidate the positive trend that began in the fourth quarter of the previous year. The first six months testify not only to Brembo's strong, immediate recovery after a difficult 2020, but also a return to growth for the Company, with revenues and net profit even exceeding those for the same period of 2019. All business segments and geographical areas in which Brembo operates reported double-digit growth compared to the first half of 2020.

Consistently with the strategy already announced, in the reporting period the Group acquired businesses in innovative sectors that reflect the new automotive-related megatrends.

Although the market remains uncertain overall, due to some external factors, the figures for the first half of the year allow us to look with confidence to 2021, in which we continue to invest. In the first months of the year, we announced the acquisition of the J.Juan group in Spain, a leader in the motorbike sector, with the aim of expanding our solutions portfolio. More recently, we have also announced the opening of Brembo Inspiration Lab, our first centre of excellence in the United States, in the Silicon Valley, to accelerate Brembo's digitalisation. These deals strengthen our natural propensity for innovation, which will continue to guide us in the future."

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H1 2021 Results

Brembo's Board of Directors chaired by Alberto Bombassei examined and approved the Group's half-year results at 30 June 2021.

In the first half of 2021, net consolidated revenues amounted to €1,360.8 million, up 43.1% (+46.5% on a like-for-like exchange rate basis) compared to the first half of the previous year.

On a like-for-like exchange rate and consolidation basis, following the inclusion into the consolidation scope of the Danish company SBS Friction, acquired effective 1 January 2021, the increase was 45.5%.

Compared to the first half of 2019 - a more homogeneous comparison in light of the effects of the Covid-19 pandemic - revenues for the first half of 2021 grew by 2.8%.

In the reporting period, all segments in which the Group operates reported a very positive performance: the car segment rose by 38.2%, motorbike applications by 82.9% (+72.4% on a like-for-like consolidation basis), applications for commercial vehicles by 45.2% and those for racing vehicles by 35.8% compared to the first half of 2020.

At geographical level, sales rose by 51.6% in Italy, 40.7% in Germany, 17.1% in France and 51.1% in the United Kingdom (+50.9% on a like-for-like exchange rate basis).

India grew by 74.4% (+88.6% on a like-for-like exchange rate basis), China by 44.6% (+46.0% on a like-for-like exchange rate basis) and Japan by 29.9% (+31.0% on a like-for-like exchange rate basis). The North American market (USA, Mexico and Canada) rose by 43.0% (+54.5% on a like- for-like exchange rate basis) and the South American market (Brazil and Argentina) grew by 49.1% (+76.1% on a like-for-like exchange rate basis).

In H1 2021, the cost of sales and other net operating costs amounted to €843.9 million, with a 62.0% ratio to sales, down in percentage terms compared to 63.9% for the same period of the previous year (€607.6 million).

Personnel expenses amounted to €254.3 million, with an 18.7% ratio to sales, decreasing compared to the same period of the previous year (21.2% of sales).

At 30 June 2021, workforce numbered 11,402 (of which 101 from the newly acquired SBS Friction), compared to 11,039 at 31 December 2020 and 11,408 at 31 March 2021.

EBITDA amounted to €270.2 million (EBITDA margin: 19.9%), compared to €143.3 million

(EBITDA margin: 15.1%) for H1 2020.

EBIT was €165.8 million (EBIT margin: 12.2%) compared to €38.8 million (EBIT margin: 4.1%) for H1 2020.

Net interest and interest income from investments amounted in the period to €2.4 million (€14.1 million expense in H1 2020); this item includes exchange gains for €3.8 million (exchange losses for €7.6 million in H1 2020), interest expense for € 5.3 million (€6.6 million for H1 2020) and interest income from investments amounting to €3.9 million (€0.06 million in H1 2020).

Pre-tax profit was €168.2 million compared to €24.7 million for H1 2020.

Based on the tax rates applicable under current tax regulations in force in each country, estimated taxes amounted to €41.4 million (€4.5 million in H1 2020), with a tax rate of 24.6% compared to 18.2% for the same period of the previous year.

The reporting period ended with a net profit of €126.9 million, accounting for 9.3% of sales.

Net financial debt at 30 June 2021 amounted to €496.9 million, up €58.1 million compared to 31 March 2021 and down €100.6 million compared to 30 June 2020. Without the impact of IFRS 16, net financial debt would have been €290.2 million, up €61.1 million compared to 31 March 2021 and down €117.0 million compared to 30 June 2020.

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Brembo Inspiration Lab: the first centre of excellence in the Silicon Valley

On 19 July 2021, Brembo announced the opening of its first centre of excellence in the Silicon Valley, California (USA): an experimental lab focused on strengthening the Company's expertise in software development, data science and artificial intelligence, to accelerate the digitalization of the company. Brembo Inspiration Lab is set to become operational in the fourth quarter of 2021. It will also, and above all, welcome talented individuals from outside the sector of reference, thus supporting a combination of a virtuous mix of various skills for the benefit of the development of Brembo's future braking solutions.

With the opening of the new centre, Brembo expands its international presence and continues to grow in North America, where it has been present for over 30 years. It currently operates a production plant in Homer and the R&D centre in Plymouth, both in Michigan. The new centre of excellence will also be a point of reference for the technological and commercial development of Brembo's relationships with customers in the Silicon Valley.

Foreseeable Evolution

Order levels for the coming months remain solid; the Group is continuing to monitor the impacts of the shortage of electronic components on its customers' production chains. On the basis of the current scenario and its H1 results, for FY 2021 the Group expects an increase in revenues of between 20% and 25% compared to the previous year and an EBITDA margin in the region of 19.5%.

Pursuant to the applicable legislation in force, Brembo Group's Six Monthly Report at 30 June 2021, as approved by the Board of Directors today, will be made available to the public at the Company's registered office, and on the corporate website www.brembo.com, as well as in the authorised central storage mechanism at www.1info.it.

The manager in charge of the Company's financial reports Andrea Pazzi, declares, pursuant to paragraph 2 of Article 154- bis of Italy's Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Annexed hereto are the Statement of Income, the Statement of Financial Position and the Statement of Cash Flows.

Company contacts:

Matteo Tiraboschi	Roberto Cattaneo
Executive Deputy Chairman	Chief Communication Officer
Ph. [phone]	Ph. [phone]
	e-mail: [e-mail]
Laura Panseri
Head of Investor Relations
Ph. [phone]
e-mail: [e-mail]
www.brembo.com	www.brembo.com

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CONSOLIDATED STATEMENT OF INCOME

(euro million)	30.06.2021	30.06.2020	Change	%	Q2 '21	Q2 '20	Change	%
Revenue from contracts with customers	1,360.8	951.1	409.7	43.1%	685.7	375.2	310.5	82.8%
Other revenues and income	10.3	8.1	2.2	26.9%	6.5	3.9	2.6	68.2%
Costs for capitalised internal works	11.5	11.0	0.6	5.2%	4.8	4.9	(0.1)	-1.4%
Raw materials, consumables and goods	(608.8)	(431.4)	(177.4)	41.1%	(301.0)	(164.8)	(136.2)	82.6%
Income (expenses) from non-financial investments	7.6	1.9	5.8	305.6%	3.5	0.8	2.7	344.2%
Other operating costs	(257.0)	(195.4)	(61.6)	31.5%	(134.5)	(86.9)	(47.6)	54.8%
Personnel expenses	(254.3)	(202.1)	(52.2)	25.9%	(130.4)	(91.8)	(38.6)	42.1%
GROSS OPERATING INCOME	270.2	143.3	126.9	88.6%	134.6	41.3	93.3	226.1%
% of revenue from contracts with customer	19.9%	15.1%			19.6%	11.0%
Depreciation, amortisation and impairment losses	(104.4)	(104.5)	0.1	-0.1%	(52.5)	(52.8)	0.3	-0.6%
NET OPERATING INCOME	165.8	38.8	127.0	327.4%	82.1	(11.5)	93.6	-813.8%
% of revenue from contracts with customer	12.2%	4.1%			12.0%	-3.1%
Net interest income (expense) and interest income (expense) from investments	2.4	(14.1)	16.6	-117.3%	5.0	(6.3)	11.3	-180.4%
RESULT BEFORE TAXES	168.2	24.7	143.6	581.7%	87.2	(17.8)	104.9	-590.3%
% of revenue from contracts with customer	12.4%	2.6%			12.7%	-4.7%
Taxes	(41.4)	(4.5)	(36.9)	818.7%	(21.9)	8.5	(30.3)	-358.8%
Result from discontinued operations	(0.1)	0.1	(0.2)	-253.2%	(0.1)	(0.1)	0.0	33.3%
RESULT BEFORE MINORITY INTERESTS	126.8	20.2	106.6	526.4%	65.2	(9.4)	74.6	-795.4%
% of revenue from contracts with customer	9.3%	2.1%			9.5%	-2.5%
Minority interests	0.2	(0.3)	0.4	-159.1%	0.4	(0.5)	0.8	-184.3%
NET RESULT FOR THE PERIOD	126.9	20.0	107.0	536.0%	65.6	(9.8)	75.4	-767.4%
% of revenue from contracts with customer	9.3%	2.1%			9.6%	-2.6%
BASIC/DILUTED EARNINGS PER SHARE (euro)	0.39	0.06			0.20	(0.03)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(euro million)	30.06.2021	31.12.2020	Change
ASSETS
NON-CURRENT ASSETS
Property, plant, equipment and other equipment	998.6	975.8	22.8
Right of use assets	206.9	207.5	(0.6)
Development costs	96.1	92.3	3.8
Goodwill and other indefinite useful life assets	105.1	79.9	25.2
Other intangible assets	52.6	47.4	5.2
Shareholding valued using the equity method	46.6	43.9	2.7
Other financial assets (including investments in other companies and derivatives)	246.4	217.3	29.1
Receivables and other non-current assets	20.8	18.2	2.5
Deferred tax assets	74.0	76.7	(2.7)
TOTAL NON-CURRENT ASSETS	1,847.1	1,759.0	88.1
CURRENT ASSETS
Inventories	450.4	354.9	95.5
Trade receivables	492.6	385.4	107.1
Other receivables and current assets	123.7	119.3	4.4
Current financial assets and derivatives	1.3	1.9	(0.6)
Cash and cash equivalents	451.1	551.3	(100.2)
TOTAL CURRENT ASSETS	1,519.0	1,412.9	106.2
ASSETS FROM DISCONTINUED OPERATIONS	0.7	0.9	(0.1)
TOTAL ASSETS	3,366.9	3,172.7	194.1
EQUITY AND LIABILITIES
GROUP EQUITY
Share capital	34.7	34.7	0.0
Other reserves	77.0	37.4	39.6
Retained earnings/(losses)	1,331.2	1,241.4	89.9
Net result for the period	126.9	136.5	(9.6)
TOTAL GROUP EQUITY	1,569.9	1,450.1	119.9
TOTAL MINORITY INTERESTS	31.3	31.0	0.3
TOTAL EQUITY	1,601.2	1,481.0	120.2
NON-CURRENT LIABILITIES	433.4	548.2	(114.8)
Non-current payables to banks
Long-term lease liabilities	185.5	187.4	(1.9)
Other non-current financial payables and derivatives	0.7	1.0	(0.2)
Other non-current liabilities	1.9	14.9	(13.0)
Non-current provisions	37.6	43.0	(5.3)
Provisions for employee benefits	22.7	26.6	(3.9)
Deferred tax liabilities	28.2	26.4	1.7
TOTAL NON-CURRENT LIABILITIES		710.0		847.5	(137.5)
CURRENT LIABILITIES
Current payables to banks	305.8	176.0	129.8
Short-term lease liabilities	21.2	21.5	(0.2)
Other current financial payables and derivatives	2.6	3.8	(1.2)
Trade payables	542.6	474.9	67.7
Tax payables	8.4	7.4	1.0
Current provisions	0.2	1.9	(1.7)
Other current liabilities	174.7	158.6	16.1
TOTAL CURRENT LIABILITIES		1,055.6		844.1	211.5
LIABILITIES FROM DISCONTINUED OPERATIONS	0.1	0.1	(0.1)
TOTAL LIABILITIES		1,765.6		1,691.7	73.9
TOTAL EQUITY AND LIABILITIES	3,366.9	3,172.7	194.1

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