Panariagroup Industrie Ceramiche S p A : Quarterly Report as of March 31st, 2020 - h. 15.00

INTERIM REPORT ON OPERATIONS AS AT 31 March 2020

Panariagroup Industrie Ceramiche Spa

Panariagroup Industrie Ceramiche S.p.A. - Via Panaria Bassa 22/A - 41034 Finale Emilia (MO)

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CONTENTS

1. STRUCTURE OF THE GROUP
2. DIRECTORS AND OFFICERS Board of Directors
   Board of Statutory Auditors Independent Auditors
3. INCOME STATEMENT, BALANCE SHEET AND FINANCIAL POSITION
4. 1. Income Statement - Comparison between 31/3/2020 and 31/3/2019
   2. Reclassified Balance Sheet
   3. Net Financial Position
5. NOTES TO THE FINANCIAL STATEMENTS
6. 1. Accounting policies and criteria adopted
   2. Scope of consolidation
   3. Comments on the operating performance
7. BUSINESS OUTLOOK
8. SIGNIFICANT EVENTS AFTER THE CLOSE OF THE QUARTER

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Panariagroup is an Italian multinational leader in innovation and beauty.

OUR MISSION

We specialise in the manufacturing and sale of ceramic tiles to promote beauty and innovation.

• Our team generates sustainable value for shareholders, employees and business partners, in compliance with the company's corporate environment.
• Our focus is on research and innovation to serve the beauty and quality of our products.
• Our goal is to meet our private and professional clients' high expectations of wellness and aesthetics, in both buildings and architecture.

OUR VALUES

TECHNOLOGICAL LEADERSHIP

We constantly invest in research, technologies and state‐of‐the‐art facilities to meet every architectural and interior design need with innovative solutions, capable of becoming the industry benchmark.

AESTHETIC QUALITY AND EXCELLENCE

We tenaciously pursue industrial excellence, from quality raw materials to process efficiency, to obtain products that combine absolute aesthetic value with the highest level of technical performance.

RESPONSIBILITY

We always place people and quality of life at the centre of our attention, with safe, environmentally‐ sustainable products and by operating with the utmost respect for those who work with us.

RELIABILITY

The guarantee of a Group which, from its family roots in the ceramic district of Sassuolo to its listing on the Milan Stock Exchange, has grown to become a solid international company, which operates throughout the world whilst maintaining an Italian core.

Panariagroup is a leading manufacturer of ceramics tiles for floors and walls. It has over 1,700 employees, 10,000 customers, 6 manufacturing plants (3 in Italy, 2 in Portugal and 1 in the United States) and a presence, through its broad and extensive sales network, in over 130 countries worldwide.

Specialising in the production of porcelain tiles and laminate, the Group is positioned in the premium and luxury market through its eight brand names: Panaria, Lea, Cotto d'Este, Blustyle, Florida Tile, Margres, Love Tiles and Bellissimo, which are capable of satisfying a diversified customer base that is attentive to the technical and aesthetic quality of its products.

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1.STRUCTURE OF THE GROUP

The structure of the Group as at 31 March 2020 is as follows:

The Group is organized in 4 main Business Units:

Italy Business Unit

The Parent Company is Panariagroup Industrie Ceramiche S.p.A., with registered office in Finale Emilia, Modena (Italy), with share capital of Euro 22,677,645.50.

Panariagroup produces and sells ceramic tiles for floor and wall coverings under four distinctive brand names: Panaria, Lea, Cotto d'Este and Blustyle. All brands are focused on the high‐end and deluxe market segment and mainly sell porcelain stoneware product lines, both in Italy and abroad.

Montanari Ceramiche S.r.l., with registered office in Finale Emilia (Italy), share capital of Euro 48,000, wholly owned by Panariagroup Industrie Ceramiche S.p.A. This company runs a retail outlet for ceramic tiles.

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USA Business Unit

Panariagroup USA Inc.,with registered office in Delaware, USA, share capital of USD 65,500,000, wholly owned by Panariagroup Industrie Ceramiche S.p.A.

It owns 100% interests both in Florida Tile Inc. and Lea North America LLC.

This company markets Panaria branded products on the North American market.

Florida Tile Inc., with registered office in Delaware, USA, share capital of USD 34,000,000, wholly owned by Panariagroup USA Inc., produces and sells ceramic tiles in the USA through three main channels: its own distribution network (24 stores), independent distributors and large distribution (Home Centers).

Lea North America LLC., with registered office in Delaware, USA, share capital of USD 20,000, wholly owned by Panariagroup USA Inc.

This company markets Lea branded products on the North American market.

Portugal Business Unit

Gres Panaria Portugal S.A, with registered office in Chousa Nova, Ilhavo (Portugal), share capital of Euro 16,500,000, subscribed and paid in, wholly owned by Panariagroup Industrie Ceramiche S.p.A.

Gres Panaria Portugal produces ceramic tiles for floors and walls under two separate brand names, Margres and Love Tiles, both aimed at the main European markets.

India Business Unit

Panariagroup Industrie Ceramiche S.p.A., with registered office in Ahmedabd ( India) , with share capital of INR 189.330.000, controlled by Panariagroup for 100,00%.

The company sells in Asia tile product with brand "Bellissimo".

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3.INCOME STATEMENT, BALANCE SHEET AND FINANCIAL POSITION

3.1 Income Statement: Comparison 31 March 2020 - 31 March 2019(in thousands of Euro)

The Balances at 31st March 2019 have been restated in respect with what shown in the 1Q Interim Report 2019, in agreement with the first Group Consolidated Financial Statement presented on 31stDecember 2019, to be considered as first‐time adoption of IFRS 16 criteria.

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3.2 Reclassified Balance Sheet (in thousands of Euro)

The Balances at 31st March 2019 have been restated in respect with what shown in the 1Q Interim Report 2019, in agreement with the first Group Consolidated Financial Statement presented on 31stDecember 2019, to be considered as first‐time adoption of IFRS 16 criteria.

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4.NOTES TO THE FINANCIAL STATEMENTS

4.1 Accounting policies and criteria adopted

This interim report on operations is drafted in accordance with art. 154‐ter of Legislative Decree 58/1998 (Consolidated Law on Finance), of the Issuers' Regulation issued by Consob.

As regards the provisions on the conditions applied to the listing of parent companies, incorporated companies or companies regulated under the laws of Countries outside of the European Union and which have a significant impact on the consolidated financial statements, it should be noted that:

• As at 31 March 2020, 4 of the companies controlled by Panariagroup come under these regulations: Panariagroup USA Inc., Florida Tile Inc. Lea North America LLC. and Panariagroup India
• Adequate procedures have been adopted to ensure thorough compliance with the new rules (art. 36 of Market Regulations issued by Consob).

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and approved by the European Union, as well as with the provisions issued in implementation of article 9 of Legislative Decree no. 38/2005.

The term IFRS is understood as including all of the international accounting standards ("IAS"), suitably revised, and all of the interpretations by the International Financial Reporting Interpretations Committee ("IFRIC"), previously named the Standing Interpretations Committee ("SIC").

This Interim Report was not audited.

The amounts are indicated and commented on in thousands of Euro, except where indicated otherwise.

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4.2 Scope of consolidation

The scope of consolidation includes:

• Panariagroup Industrie Ceramiche S.p.A.Parent Company
• Gres Panaria Portugal S.A.wholly‐owned
• Panariagroup USA Inc.wholly‐owned
• Florida Tile Inc.wholly‐owned
• Lea North America LLC.wholly‐owned
• Montanari Ceramiche S.r.l.wholly‐owned
• Panariagroup India Industrie Ceramiche Pvt Ltdwholly‐owned

The consolidation area is unchanged if compared with 31stDecember 2019, while it is different from 31stMarch 2019.

At 31stMarch 2019, the Participation in the Indian Company was equal to 50%, as result of a Joint‐Venture agreement, and therefore the accounting representation was based, at that date, on the "Equity Method".

Starting from 1stAugust, identified as Acquisition Date as foreseen by IFRS 10 and IFRS 3, the Company is fully consolidated.

We highlight that the incidence of the acquired Company on the Total Assets and on the Revenues of the Group is lower than 0,5%.

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4.3 Comments on the operating performance

Summary of Income Statement ‐ Figures as at 31 March 2020 (in thousands of Euro)

In short, the results of the period are as follows:

• Consolidatedrevenuestotalled Euro 92.5 million, a drop of 4.0%compared to March 2019.
• Thegross operating profitwas Euro 7.0 million(Euro 7.4 million as at 31 March 2019).
• Thenet operating losscame to Euro 1.6 million(loss of Euro 0.9 million as at 31 March 2019).
• Theconsolidated net resultwas a loss of Euro 1.7 million(loss of Euro 1.1 million as at 31 March 2019).

The trend in the first quarter of 2020 was conditioned by the progressive spread of the Covid‐19 epidemic, which led to significant economic repercussions, initially limited to Asian areas and then spreading to Europe.

The performance of the Group's turnover was also clearly affected by the progression of the virus, with an actual drop in sales in the Italian market, as well as with significant declines in other European countries (in particular Spain and France) in March 2020, after the first two months of the year had been characterised by a slight growth in turnover compared to the previous year.

Despite the global spread of the phenomenon, the diversification of turnover made it possible to contain the loss of turnover in the quarter; while the Italian Business Unit suffered significantly the negative effects with a drop in sales (‐10%), the Portuguese and the American Business Units were able to achieve growth of 3% and 2% respectively.

The drop in turnover was accompanied by a reduction in the volumes produced following the government measures that imposed in Italy, also for our sector, the closure of production activities in the last ten days of March.

The overall effect of the decrease in sales and production was a reduction in the Production Value of Euro 9.3 million, equal to 9.1%.

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With these preliminary remarks, the decrease in the Gross Operating Profit of "only" Euro 0.5 million, with an improvement in percentage terms (from 7.3% to 7.5% on the Production Value) is to be considered a positive result overall, to which some exogenous and endogenous factors contributed.

The most important exogenous positive factor was undoubtedly the drop in gas and electricity tariffs, already widely expected and which led to a significant drop in unit production costs.

Positive endogenous factors were equally important, determined by the actions taken by the Group in commercial, logistics and production terms.

Firstly, the safeguarding of sales margins was confirmed, with the application of an increase on the 2020 price lists, accompanied by a rigid application of the discount commercial policies applied to customers.

Also in commercial terms, activities continued for a more targeted use of promotional tools, in addition to a significant downward revision of spending budgets, following the expectations of a decline in 2020 turnover, related to the effects of Covid‐19 on consumption.

Excellent results are also the result of incisive measures implemented to reduce production costs; in this regard, of particular importance are the savings deriving from the optimisation of the formulation of mixes and glazes and from greater standardisation, in terms of formats and thicknesses, of the products in the catalog.

A further element of improvement was represented by the increase in the use of internal processing lines (grinding and sanding), thanks to the investments made in 2019 and careful production planning.

The main financial indicators (Net Working Capital, Net Financial Position) maintained levels close to as recorded in the first quarter of 2019; an exception are Non‐Current Assets, in sharp decline, as effect of the planned reduction in investments in 2019 and the temporary block of the planned interventions in the first quarter of 2020, pending greater certainty on the medium‐term economic effects of the pandemic in progress.

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Consolidated Revenues

Revenuesdecreased by Euro 3.9 million compared to the first quarter of 2019, with a negative change of 4.0%.

The turnover trend was clearly affected by the impacts of Covid‐19 on the economic system; after the first two months, which closed slightly up on the same period of the previous year (+0.6%), signs of a slowdown in consumption were evident in March 2020 alone, with a drop in turnover of 12.1%, concentrated on the Italian Business Unit (‐23.4% in the month).

Principal markets

European marketsremained substantially stable, with a drop in turnover of less than 1%.

In line with as recorded in 2019, good results were confirmed in Germany, Austria and Eastern European Markets.

Instead, France and Spain, among the countries most affected by the Coronavirus, suffered significant drops. The impact of the European markets on total revenues was 39%.

Turnover on the US marketgrew by 2.8% in Euros.

The result is positive, in consideration of low American consumption; in particular, outstanding results were recorded for the companies Panariagroup USA and Lea North America, with Florida Tile, attesting to the turnover levels of the previous year.

In the first quarter, the economic effects of the pandemic were not visible in the US market, which occurred with a delay compared to Europe.

The impact of the US market on total revenues was 35%.

The Italian marketis the one in which the Group was most penalised by the spread of the Coronavirus; after the first two months, closed in line with the previous year, March alone, due to the lock‐down imposed on people and businesses for health purposes, recorded a drop of 40%, bringing the overall performance in the quarter to ‐15%.

The impact of the Italian market on total revenues was 17%.

In theother markets (Asia, Canada, South America, Oceania and Africa), there was an overall negative result, with a drop of 17%.

In the face of a positive trend in Africa and stationary in Oceania, the Asian area suffered a significant decline in turnover (‐27%).

As is known, the spread of contagion began precisely in these areas, which therefore were the first to show the effects, also economic, of this phenomenon.

The impact of the "other markets" on total revenues was 9%.

The turnover of the Group's foreign marketsis therefore equal to 83%of the total, with the share of non‐ European marketsequal to 44%of total turnover.

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Geographical diversification, an important characteristic of our Group, from a commercial, logistical and production point of view, represents, especially at this time, an element of particular relevance.

It is true that we are witnessing a worldwide phenomenon, where no area can be considered protected from health and economic risk. However, it is equally true that the spread is happening in different ways and at different times, allowing to reduce, at least in a temporal perspective, the effects that are impacting the various areas from time to time.

Performance of the Group Divisions

The Italian Business Unitis the one that, in the first quarter, evidently suffered the negative effects of the viral phenomenon, with a 10% drop in turnover (‐23% in March alone).

At first, the negative effects concerned the Asian markets, which already showed a significant drop in February, with further worsening in March.

Subsequently, the spread in European areas led to an actual collapse in sales in the Italian market and a significant drop in turnover in France and Spain, among the most affected countries together with our country, while other important markets have remained stable, such as Germany, where economic activity continued without significant interruptions despite the epidemic.

The Portuguese Business Unitrecorded growth of 3%.

Fortunately, Portugal has not been particularly affected by the pandemic; therefore, there has been only a slight slowdown in this area, in the presence of precautionary health measures that have however affected the performance of the local economy.

In Europe, the significant drop in the main reference market (France) was offset by the positive trends in Austria and Germany. Lastly, there was excellent growth in Africa; this area is characterised, for European exporters, by large orders and not by a constant flow of sales to local distributors, hence with rather fluctuating trends.

The United States Business Unithad sales growth of 2% in Euros, in a declining market context (‐12% of consumption, according to data provided by TCNA, the sector association in the USA).

In the first quarter, the companies Panariagroup USA and Lea North America had particularly positive results. They market the Panaria and Lea brand products in the United States respectively.

As far as Florida Tile is concerned, there is a trend substantially aligned with the results of the first quarter of 2019.

The "Home Center" channel is confirming its solidity, with sales above the predetermined Budget levels, which also foresee an increasing trend in turnover during the year due to the start‐up of some new lines in the customer's stores on national scale.

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The Branches channel substantially confirmed the sales of the previous year; the direct presence on the territory of these commercial organisations makes it possible to effectively monitor the market shares, which are difficult to attack by competitors that do not have their own networks of stores.

In the channel of independent distributors, difficulties continue to emerge, despite the attenuation of the competitive pressure deriving from the application of anti‐dumping duties to Chinese producers; in this regard, it is noted that the latest available data (referring to February 2020), show a real zeroing of imports from China, confirming the effectiveness of the measure, which, however, at the moment seems to have benefited above all competitors from other Asian countries (primarily, India and Turkey).

Operating results

Gross operating profitcame to Euro 7.0 million, representing 7.5% of the Production Value (Euro 7.4 million as at 31 March 2019, equal to 7.3% of the Production Value).

The economic result was significantly affected by the direct and indirect impacts of Covid‐19, which led to both a reduction in turnover and a consequent slowdown in production compared to the first quarter, with an overall drop in Production Value of Euro 9.3 million (‐9%).

In this perspective, the reduction in the Gross Operating Profit of "only" Euro 0.5 million, with an improvement in the % of the Gross Operating Profit on the Production Value (from 7.3% to 7.5%) is to be considered an appreciated result and determined by a series of factors that made it possible to partially balance the negative effects of the reduction in turnover and production.

First of all, despite this particular macro‐economic context, there was a slight increase in average prices, deriving from the increases in sales lists and the application of a rigorous commercial policy aimed at preserving margins.

In terms of costs, the effects of the reduction in gas tariffs (‐20%) and electricity tariffs (‐10%) were finally visible, with a significant impact on unit production costs.

With regard to production costs, there were also good results from the actions taken to optimise the cost of the mixes and glazes and savings resulting from the lesser use of external processes, made possible by investments in the "manufacturing" departments of the previous year and careful management of production planning.

As regards commercial costs, once the effective extent of the viral phenomenon was ascertained, the budgets were promptly modified, with reference both to the purchase of promotional material, and to the participation in fair events and meetings, as well as presentation calendar of the new collections; these effects will be visible already form the next quarter.

Net operating lossamounted to Euro 1.6 million (loss of Euro 0.9 million as at 31 March 2019).

Depreciation and amortisation, including that deriving from rights of use and provisions, have increased by Euro 0.2 million euro compared to the first quarter of 2019.

The incidence of financial expenses on the Production Value, equal to 0.9%, remains at low levels; in this regard, it is noted that slightly less than half of this cost consists of Interest expense on lease contracts, in application of IFRS 16.

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The Consolidated net resultwas a loss of Euro 1.7 million (loss of Euro ‐1.1 million as at 31 March 2019).

Analysis of the balance sheet

(in thousands of Euro)

Net Working Capital

Net Working Capital as at 31 March 2020 is slightly higher (+ 1%) compared to the first quarter of 2019 and up compared to the beginning of the year, due to the physiological seasonal trend of "Receivables from customers".

Despite the unexpected drop in volumes sold, the level of inventories decreased slightly in the first 3 months of 2020; a complete production shutdown of the three Italian factories in the last ten days of March was added to a budget production plan already directed towards a reduction in inventories, due to the lock‐down imposed by government provisions as measure to stop the spread of Coronavirus.

The awareness that a significant decline in sales will be likely in the coming months has already led to a drastic revision of the 2020 production plan, with the aim of significantly reducing inventories.

In particular, in addition to expecting a significant reduction in volumes, there will be focus towards optimising the range of products offered to customers, with a view to guaranteeing a high level of service on the most requested products, even in a lower production situation.

With reference to the other items that make up the Net Working Capital, we continue to record a healthy DSO ratio and a reduced incidence of overdue receivables.

We are paying particular attention to the evolution of commercial credit, in consideration of the foreseeable difficulties that our customers will also encounter in this difficult period, in particular in the Italian market.

The management of Net Working Capital will be a crucial factor for ensuring positive cash flows throughout 2020, in a context where a significant (and unpredictable until a few months ago) decline in sales and collections becomes increasingly probable.

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Non‐current assets (net of rights of use and leased assets)

Non‐current assets (net of rights of use and leased assets) decreased by Euro 1.9 million since the beginning of the year, due to the following:

• Investments in the period totalling Euro 2.4 million, of which Euro 1.0 million realised in Italy, Euro 0.7 million in Portugal and Euro 0.7 million in the United States.
• Amortisation and depreciation for the period of Euro 5.4 million.
• Higher value of fixed assets expressed in Euros of the US sub‐consolidation, due to the appreciation of the US currency with respect to the end of 2019, amounting to Euro 1.1 million.

The level of investments in the first quarter is significantly lower, both compared to previous years and compared to the budgets formulated at the beginning of the year.

In view of the worsening economic impacts linked to the Covid‐19 epidemic, most of the projects planned for 2020 have been temporarily "frozen", as a support measure for corporate liquidity and taking into account the high uncertainty regarding performance in the coming months.

At the same time, investment activities considered to be more strategic are continuing, aimed at improving the efficiency of the production plants and creating highly expanding product types.

Rights of Use for Leased Assets

This item was included in application of IFRS 16 and represents the value of the right to use the asset underlying the leasing contracts (rents and leases) for the duration of the contract.

It is important to underline that around 95% of the value refers to real estate leases that mainly concern the operating buildings (factories, warehouses and offices) used by Panariagroup Industrie Ceramiche S.p.A. and those used by Florida Tile Inc., including 24 direct sales stores.

With reference to buildings used as production plants and warehouses, the Group has entered into long‐ term contracts to ensure the right to use these assets and to be able to plan its industrial policy over a sufficiently long period of time.

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Net financial indebtedness

The following is a summary of cash flows, net of the effects of the application of IFRS 16 (amounts in millions of Euro):

The Net Financial Position, equal to a total of Euro 222.4 million, consists of Euro 116.0 million of "Financial debt" and Euro 106.4 million of "Liabilities for leased assets" and is down Euro 3.3 million compared to 31 March 2019.

The item "Liabilities for leased assets" was included in accordance with IFRS 16 and represents the value of the contractual commitments relating to leasing contracts in force at the closing date of the period and corresponds, in general, to the present value of future lease payments.

The level of the Net Financial Position has always been one of the major management objectives for the Group. However, the real economic shock we are witnessing makes it undoubtedly the main issue for the whole of 2020, placing it at the center of all operational decisions for the coming months.

Liabilities for Leased Assets ‐ IFRS 16

This item was included in accordance with IFRS 16 and represents the value of the contractual commitments relating to leasing contracts in force at the closing date of the period and corresponds, in general, to the present value of future lease payments.

Equity

Shareholders' equity went from Euro 157.3 million as at 31 December 2019 to Euro 157.1 million as at 31 March 2020, marking a decrease of Euro 0.2 million.

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5.BUSINESS OUTLOOK

The forecasts on the operating performance of the coming months cannot be separated from the Coronavirus phenomenon, which will certainly continue to heavily influence the whole of 2020, without current visibility of when we will be able to return to a normal situation.

In confirmation of this fact, it is reported that April 2020 alone ended with a 45% drop in turnover for the Group compared to the same month of the previous year, due to the continuation of the lock‐down in Italy and to the worsening of the situation in the United States. Production activity suffered an even more marked shutdown, with the total closure of the Italian factories and partial closure of the Portuguese ones.

The trend of the last two months has meant that the initial loss and uncertainty have been replaced by increased awareness of the severity of the situation, and this certainly results in a clearer idea of the actions to be taken.

The fundamental lines of the Group's activities for the coming months will essentially be two: the management of financial liquidity and the optimisation of the structure and processes, with the aim of resuming, at the end of the crisis, with renewed strength and energy.

The economic system has undergone a real shock, due to the extent, speed and spread of the phenomenon, in an unpredictable and non‐programmable manner; this is causing a liquidity crisis in all sectors, including ours, which risks having a domino effect, compromising even the most solid companies.

It is therefore necessary to mitigate this risk, implementing all possible actions to optimise financial flows.

In this perspective, one of the fundamental levers is the management of Net Working Capital, with particular attention to inventories and to trade receivables and payables.

The reduction in inventories represents an important source for recovering liquidity that is currently fixed; this objective necessarily passes through a significant reduction in the volumes produced. A detailed operational plan has been prepared to allow this objective to be achieved, without compromising the level of service for customers on the "best‐selling" collections.

It is equally important to achieve balance in terms of trade receivables and payables, to preserve the supply chain; this determines the need to find agreements in both areas that allow mutual support.

Another important lever is represented by a decisive and significant saving of non‐essential operating costs; in this sense, also in consideration of the current scarce receptivity of the market, the spending budgets of commercial costs have been considerably reduced.

The investment budget for 2020 has also been affected by a temporary suspension of many projects, leaving open only those deemed strategic for increasing competitiveness, essential for a more effective restart in 2021.

The Group is also making use of the support measures implemented by public institutions on personnel costs, which is allowing, at a time of significant slowdown in activities, to contain this kind of costs in all the Business Units.

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Another element of great importance is obviously the support of the financial system; in consideration of the extraordinary nature of the moment, the Group has requested the possibility of extending the amortisation plans for medium/long‐term loans in place, with reference to the instalments due in 2020, obtaining overall, positive and appreciated feedback from financial institutions.

In this context, we are operating, in all the Group's Business Units, to access medium‐long term forms of financing supported by government aid, while also observing, in particular in the Italian system, uncertainties regarding the timing and method of disbursement, while requests made in Portugal and the USA are at a more advanced stage.

In addition to the central issue of liquidity, we believe it is fundamental to seize the opportunity offered by this moment of "stasis" to review the business model even more in‐depth.

The initiatives that had already been undertaken, in particular in terms of industrial efficiency and the diversification of sales channels, will be in addition to other initiatives aimed at the optimisation of the product catalog, customer base, organisational structures, so we can be more ready, competitive and timely when the economy is able to restart.

We believe that when the emergency is over, markets can take on a new physiognomy in which the value increases of competitive factors that are already important, but that previously had not yet fully matured as primary.

We refer in particular to Sustainability, of which Panariagroup is a convinced interpreter, but also to the greater consideration by consumers of the intrinsic characteristics of the ceramic product compared to other alternative materials, thanks to its greater guarantees in terms of hygiene and cleanliness.

In this context, for example, we are observing particular interest in our Protect anti‐bacterial products with Microban technology, which are very much in demand.

In this moment of great uncertainty, we think that our Group, thanks to its history and experience, can represent a solid point of reference for suppliers, customers, and its personnel. Therefore, we feel a lot of responsibility in dealing with this global crisis that we are facing with a spirit of renewed energy and enthusiasm, to be even more leaders among the players in the sector at the end of the emergency.

6.SIGNIFICANT EVENTS AFTER THE CLOSE OF THE QUARTER

No significant events are to be reported.

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