The Board of Directors of MARR approves the consolidated financial statements as at 31 December 2020.

Rimini, 15 March 2021 –The Board of Directors of MARR S.p.A. (Milan: MARR.MI), the leading company in Italy in the sale and distribution of food products to the foodservice sector, today approved the consolidated financial statements and the draft of the MARR S.p.A. financial statements for the 2020 business year, that will be submitted to the Shareholders’ Meeting on 28 April.

The Board of Directors once again expressed its gratitude to all of the employees and collaborators who with great professionalism and commitment are managing these difficult times and who, after one year of the pandemic emergency, are still showing a high level of involvement and strong motivation to better manage the recovery in business activities. The various levels of the management team have shown sensitivity and skill in managing resources, especially during the most difficult times, ensuring flexibility and rapidity in their responses during the closures and re-openings caused by the various national and local health dispositions enforced.

MARR has defined a clear approach – restated at the beginning of the pandemic and adjusted to suit the changes in context during the course of the last year – which is being concretely implemented to pursue its strategic guidelines:

i. enhancing liquidity, at the end of 2020, MARR exceeded 250 million in liquidity, doubling the levels at the start of the pandemic, also thanks to the support of its shareholders, the trust of the financial institutions, the careful management of all the components of the working capital and a selective approach to investments, favouring those oriented towards growth;

ii. proper management of operating costs, achieved by intervening on the fixed costs and the optimisation of the management of the logistical and distribution network in a flexible manner during the various phases of the pandemic, always with the aim of maintaining client support and service;

iii. consolidating its leadership position and relationship with the Market, ensuring a high standard of service for its professional partners/clients, in full respect of the health laws and regulations throughout the production chain, capable of satisfying and guaranteeing the final consumer. From the viewpoint of client service, the initiatives for the monetisation of the government contributions (for example management of the “holiday bonus” and “rent bonus”) should also be mentioned, as should the offer of local and Made in Italy products which, in addition to valorising the quality ofItalian food products, has been useful in obtaining the “Production Chain Bonus” by clients. The client remains the focal point of MARR, through an integrated approach based on “phygital marketing” initiatives, in other words those with a balance between the “physical” approach and “digital” tools;

iv. identifying new business opportunities with specific regard to the forms of service (take away, food delivery) and product lines (for example packaging, sanitisers, disinfectants, food ready to eat) that have been strengthened during the pandemic;

v. further enhancement of MARR’s competitive position as a result of the expected consolidation of the Market once the pandemic emergency has been overcome. In this consolidation process, which will benefit the more structured operators, MARR, consistently with its leadership role, will make the most of the opportunities to enhance its offer and presence to further raise its level of service. From this viewpoint, the recent acquisition of the activities of processing and marketing of seafood products (especially fresh) of the Verrini Group is further confirmation of MARR’s role of market aggregator. This operation represents a major opportunity to continue to enhance the offer of fresh seafood products, a type of product fostering client loyalty which is the basis of the specialisation strategy implemented over the years by MARR. Again with a view to territorial growth and enhancement, the beginning of the next quarter is expected to see the opening of a new branch in Catania. This branch will be destined to improve coverage in eastern Sicily, and consequently increase the level of service offered in a highly tourist-oriented area with significant prospects of growth;

vi. ESG, as market leader, MARR has always focused closely on sustainability and intends to implement an increasing number of initiatives in this regard. Examples of this are the MSC and ASC certifications for the chain of custody of sustainable fishing and fish farming respectively and the voluntary certification of the process of control over the sustainable seafood production line, which has recently been integrated in respect of the criteria for the conditions of increased animal wellbeing in fish farming systems (www.marr.it/sostenibilita/pesca-sostenibile).

These strategic guidelines are the reference point for the management of the various phases of the pandemic and also for the expected recovery of out-of-home food consumption.

In a context of normality, which it is hoped will be more the case in the second half of 2021, Italians will return to enjoying out-of-home food consumption as a key part of their social lives and Italy will return to being one of the most sought after tourist destinations for foreigners, with Italian food once again being one of the more attractive elements.

Confirmation of this was seen in the early part of last February which, as a result of the momentary easing of the restrictions, showed a significant recovery in activities for clients in the foodservice sector, confirming the reactivity of out-of-home consumption that had already been observed in the third quarter of 2020. Such trends are proof that once the health conditions allow it, out-of-home food consumption will return to being an important item of expenditure for Italians.

The 2020 business year closed with total consolidated revenues of 1,073.7 million Euros (1,695.8 million in 2019), with a decrease in the second half of the year of 30.6% (compared to the same period in 2019), an improvement on -43.6% in the first six months of 2020.

The EBITDA reached 39.4 million Euros, compared to 128.5 million in 2019, and was affected by the reduction in revenues and margins, also due to the different sales mix in terms of clientele. The reduction in margin was partly mitigated by the interventions on the fixed operating costs implemented without lessening closeness to the clients. Of the measures implemented, those involving part of the workforce concerned the careful use of the various employment law tools available, with a consequent containment of the cost of employment.

The EBIT was 2.8 million Euros (99.1 million in 2019) and was also affected by the prudential policy of provision for bad debts, with provisions in 2020 of 19.3 million Euros and an incidence of 1.8% on the total revenues, highlighting an increase of 6 million compared to 13.3 million in 2019 (0.8% of the total revenues).

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