PORTUGAL – Sonae Indústria’s results, since the second half of March and particularly in the second quarter of 2020, were significantly affected by the COVID-19 outbreak and the respective extraordinary containment measures imposed by the authorities in the different regions where it operates Sonae Indústria (Europe, North America and South Africa).

Consolidated turnover for the first half of the year reached 94.9 million euros, 18.4% less than in the same period of the previous year (-21.5 million euros), mainly due to lower sales volumes. The evolution of consolidated billing was clearly affected by the COVID-19 outbreak, with significant negative impacts in April (-44% compared to April 2019) and May (-34% compared to May 2019), but with a material recovery in June despite still being below last year’s level (-16% compared to June 2019). In 2Q-2020, consolidated turnover was 40.6 million euros, a decrease of approximately 13.7 million euros and 19.0 million euros compared to 1Q-2020 and 2Q-2019, respectively, due to the effects of the pandemic in the businesses of North America and Laminate Products and Components.

Recurring EBITDA for the first half of the year was 10.3 million euros, a reduction of 2.7 million euros compared to the same period of the previous year, mainly explained by the reduction in turnover. On a quarterly basis, recurring EBITDA in 2Q-2020 was around 5.0 million euros, a decrease of 3.3 million euros and 0.4 million euros, compared to 2Q-2019 and 1Q-2020 , respectively.

The recurring EBITDA margin in 2Q-2020 reached around 12.3%, a reduction of 1.6 percentage points compared to 2Q-2019, but an increase of 2.4 percentage points compared to 1Q-2020.

Given the high uncertainty regarding the intensity and duration of the COVID-19 pandemic and its impact on the economy, Sonae Indústria cannot accurately and reliably estimate the future effects on its results. The situation in recent months has been very dynamic, which makes any forecasting exercise very complex and speculative.