Servizi Italia S p A : The BoD of Servizi Italia approves the separate and consolidated financial statements as at 31 December 2021

PRESS RELEASE

14 March 2022

The Board of Directors of Servizi Italia approves the separate and

consolidated financial statements as at 31 December 2021

The year 2021, marked by the good performance of all the main economic and financial indicators,

closes with growth in margins compared to 2020 in all the operating segments in Italy

and with solid performance and organic growth in Brazil and Turkey.

Significant - but in line with expectations - impact of energy costs in the fourth quarter.

Full continuity of essential services and the highest level of security for all employees guaranteed.

• Consolidated Revenues equal to Euro 256.7 million (Euro 240.2 million in 2020)
• Consolidated EBITDA equal to Euro 64.9 million (Euro 57.9 million in 2020)
• Consolidated EBIT equal to Euro 9.8 million (Euro 3.9 million in 2020)
• Consolidated Net Profit equal to Euro 7.2 million (Euro 2.9 million in 2020)
• Net financial position equal to Euro 125.7 million (Euro 129.6 million as at 31 December 2020)

Castellina di Soragna (PR), Italy, 14 March 2022

The Board of Directors of Servizi Italia, a company listed on the Euronext STAR Milan of Borsa Italiana and leading operator in the outsourcing of hospital services in Italy, Brazil, Turkey, India, Albania, Morocco - today approved the Separate and Consolidated Financial Statements as at 31 December 2021.

"The year 2021 - said Roberto Olivi, Chairman of the Executive Committee of Servizi Italia - has once again demonstrated the solidity of Servizi Italia and its business model. The year ended with a marked improvement in all the performance indicators and segments in which the Group operates. While on one side the uncertainty linked to the pandemic crisis now seems to be behind us, the challenge that awaits us in the immediate future is linked to energy price increases, which will have a direct impact on the Group's operating margins from the last quarter of 2021. The solidity of our customer portfolio and the continuous search for operational efficiencies are the elements of strength to face the near future and preserve the value generated by supporting and protecting all stakeholders."

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CONSOLIDATED RESULTS AS AT 31 DECEMBER 2021

The consolidated turnover of the Servizi Italia Group amounted to Euro 256.7 million in 2021, up by

6.9% compared to 2020, with the following sector trends:

• Wash-hireservices - which accounts for 76.0% of Group's revenues and includes all activities relating to the washing, hire, collection and reconditioning of textile and mattress products - generated revenues in 2021 equal to Euro 195.1 million up by 7.8% (Euro 181.0 million in 2020), supported by the recovery of Italy and by the excellent organic growth in Brazil and Turkey, however offset by a negative exchange rate variation (-2.3%). With specific reference to Italy, the growth in revenues compared to the previous year is mainly linked to the new tenders in the north-eastern area, only partly mitigated by the drop in volumes and prices of some contracts and by the drop in the hotel and catering sector in the first part of the year. Revenues from Italy amounted to approximately Euro 0.8 million relating to Covid financial aid measures (Italian "Ristori"), obtained following ANAC resolution no. 540 of 1 July 2020.
• Textile sterilization services - which accounts for 7.1% of Group's revenues and includes all activities relating to sterilization of sterile sets and the supply of disposable items used in surgical procedures for setting up the operating field and dressing the medical team - recorded revenues in 2021 equal to Euro 18.2 million, with an increase of 1.1% coming from a growth in the textile sterilization service in relation to new tenders in the north-eastern area of Italy, only partly offset by a lower supply of non-woven fabric (TNT) compared with the previous year.
• Surgical instrument sterilization services - which represents 16.9% of total revenues and includes all activities related to the rental, sterilization, collection and reconditioning of surgical instruments - generated revenues in 2021 equal to Euro 43.3 million, with an increase of 5.4% mainly coming from some new orders in the north-eastern area of Italy, as well as the recovery of surgical activity compared to the previous year.
• For what concerns geographical distribution, revenues generated from foreign markets amounted to Euro 32.7 million (of which Euro 25.7 million relating to Brazil and Euro 7.0 million relating to Turkey) covering the 12.7% of Group's turnover (13.7% in 2020). In 2021, revenues coming from the Brazilian area were characterized by a positive organic growth in local currency (+7.9% compared to 2020), offset by a negative exchange rate translation effect of 8.2% (depreciation of the Brazilian Real against the Euro) leading to a negative change in the year of 0.3%. Turkey registers a double-digit organic revenue growth (up by 29.3%), offset by a negative

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exchange rate effect of 30.2% (depreciation of the Turkish lira against the Euro), resulting in a negative change in turnover of 0.9%.

Consolidated EBITDA increased from Euro 57.9 million in 2020 to Euro 64.9 million as at 31 December 2021, with the relative ratio increasing from 24.1% to 25.3% of revenues i.e. an absolute growth of 12.0%. This index growth is mainly supported by the recovery of the business in Italy, especially in relation to an operational management within the wash-hire segment, which was less penalized by the pandemic situation occurred in 2020 and the recovery of hospitalizations which, across the board, contributed to the recovery of margins on all operating segments. The Brazil area shows a positive performance (EBITDA margin of 30.6%), although weighed down in the last part of the year by an increase in costs for raw materials and utilities as well as costs incurred for the start-up phase of the sterilization segment, whose start is expected in 2022. The Turkey area, despite double-digit organic growth on the bottom line, recorded a drop in the EBITDA margin from 30.3% in 2020 to 21.9% in 2021. This contraction is due to the price increases recorded in the last quarter, which primarily impacted the consumption of materials and, even more significantly, energy costs. It should be noted that during the year a capital gain of Euro 1.5 million was recognised on the sale of the workwear business. During the year, there were also estimated charges of Euro 1,2 million relating to the restructuring process aimed at discontinuing production activities at Ariccia (RM) plant. Raw material costs had a lower incidence on turnover compared to the comparison period (-0.8%), mainly due to lower purchases of non-woven textile made on Steril B line in Italy. Service costs rose by 1.4%, primarily due to a change in the logistics and production structure regarding the management of laundry and wardrobes services linked to new tenders launched in north-eastern Italy, as well as the increase in utility costs registered in the last quarter in all the geographical areas where the Group operates. Personnel costs as a percentage of revenues are down by 0.2% compared with the previous year, whilst this item is up in absolute terms (+6.2%) due to an increase in the number of employees in Italy arising from the launch of new contracts, as well as reduced use of redundancy funds (Italian CIG) in 2021. Personnel costs also include costs for a total of Euro 0.6 million in relation to bonuses, not present in 2020.

Consolidated operating income (EBIT) increased from Euro 3.9 million during 2020 (EBIT margin 1.6%) to Euro 9.8 million during the same period in 2021 (EBIT margin 3.8%), mainly as a result of the dynamics already described commenting the change in revenues and EBITDA. Provisions of Euro 0.35 million were recorded in year 2021 in line with the provisions of international accounting standard IAS 37 regarding onerous contracts.

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The Servizi Italia Group's consolidated financial statements as at 31 December 2021 closed with a net income of Euro 7.2 million, compared to Euro 2.9 million in the previous year.

The change in net financial debt, which passed from Euro 129.6 million as at 31 December 2020 to Euro

125.7 million as at 31 December 2021 includes, among other things: the collection of the price for the sale of the workwear division for approx. Euro 9.5 million; the investment in materials - primarily textiles and linen - to be introduced into the production process, for approx. Euro 58.0 million; the payment of the fourth installment of the price for Wash Service S.r.l. for Euro 0.5 million; financial contributions to joint ventures totaling Euro 2.0 million; the payment of other financial liabilities totaling Euro 1.8 million; and the purchase of treasury shares for Euro 1.0 million.

SERVIZI ITALIA S.P.A. RESULTS AS AT 31 DECEMBER 2021

In 2021 Servizi Italia S.p.A. achieved total revenues equal to Euro 211.7 million, up by 8.3% compared to 2020 turnover (Euro 195.6 million).

EBITDA 2021 amounted to Euro 51.4 million, with a relative incidence increasing from 22.1% to 24.3% of revenues, i.e. 19.0% growth in absolute value.

Operating profit (EBIT) 2021 amounted to Euro 6.5 million, compared to Euro -0.4 million in 2020.

Equity as at 31 December 2021 totalled Euro 121.7 million compared to Euro 121.1 million as at 31 December 2020.

The net financial position as at 31 December 2021 is equal to Euro 113.3 million, compared to Euro 117.0 million as at 31 December 2020.

ALLOCATION OF NET INCOME

The Board of Directors will propose the Shareholders' Meeting to allocate Euro 1.5 million as Reserve for valuation of equity investments using the equity method and carry forward the residual net income for the year. It also proposes to allocate Euro 0.2 million from the Reserve for valuation of equity investments using the equity method as retained earnings, as the restriction on non-distributability no longer applies.

Information on Covid-19

The Covid-19 viral pandemic has imposed the need to contain epidemiological development as much as possible, leading to changes in hospital procedures and activities with regard to hygiene standards for medical and nursing staff, wards and in-patients designated for the treatment of infections caused by the Coronavirus. All the activities of the Group, despite of operating in strict compliance with the

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relevant regulations, have been impacted by the evolution of the contingent situation. It is important to underline that, although in a context of recovery from an operational and economic point of view, there are still some uncertainties in relation to the possible impact of the new variants that could affect both the business evolution and the needs of stakeholders' needs the Group is operating with.

EVENTS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

As is well known, the escalation of tensions between Russia and Ukraine, resulting in the invasion of Ukrainian territory by the Russian army on 24 February 2022, is creating repercussions on international markets, both in terms of financial market trends and commodity prices. The Servizi Italia Group could be affected in the event of further volatility in energy prices, whilst no market and/or exchange rate risks are identified, as the Group has no commercial transactions with the countries involved. Also, in relation to the cost of energy, the risk could be reduced by the possibility of recouping this cost in the final price in relation to the introduction, in the tender contracts, of price revision clauses. The evolution of the situation is continuously monitored by company management.

As at 4 March 2022, the Company has purchased a total of 2,092,658 treasury shares, equal to 6.58% of the share capital, on the regulated market managed by Borsa Italiana S.p.A.

BUSINESS OUTLOOK

The results achieved in 2021 were better than expected. The good performance of the year comes from a lower impact of COVID-19 crisis, as well as from the strong recovery recorded in Italy, the consolidation of the positive operating results of the foreign companies and the organizational and production efficiency actions undertaken to mitigate the effects of the crisis in the Italian industrial laundry market.

The Group expects positive results for the 2022 financial year, albeit paying particular attention to the volatility of energy costs, which will be affected by the current destabilizing macroeconomic and geopolitical context. At the basis of the solidity elements to counter the present moment of uncertainty there is the Group's customer portfolio, which is expected not to be affected by direct impacts related to the "Donbass crisis" and, moreover, the Group does not operate directly with stakeholders involved in the economic restrictions decided by the European Council through Decision (EU) 2022/266 and Regulation (EU) 2022/263. The Group's medium-term strategy envisages organic consolidation of its leadership position in the Italian and foreign markets and ongoing research into optimization and efficiency in order to contain, among other things, the expected impact of rising energy prices and inflationary increases, especially in Brazil and Turkey. With regard to liquidity, net debt - after having

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