DiaSorin S.p.a. Annual Financial Report Via Crescentino snc - 13040 Saluggia (VC) December 31, 2020 Codice Fiscale e Iscrizione Registro delle Imprese di Vercelli n. 13144290155 Annual Financial Report December 31, 2020 DiaSorin S.p.a. Via Crescentino snc - 13040 Saluggia (VC) Codice Fiscale e Iscrizione Registro delle Imprese di Vercelli n. 13144290155 Annual Financial Report Letter to shareholders 4 Independent auditors’ report on the consolidated non-financial statement of the DiaSorin Group 186 Report on operations 6 Motion to approve the financial statements Board of Directors & Control Bodies 8 and appropriate the 2020 net profit 190 Our business 16 Consolidated financial statements Table Strategy 18 at December 31, 2020 and December 31, 2019 of the DiaSorin Group 192 of contents Research and development 19 Consolidated income statement 192 Technological platforms 20 Consolidated comprehensive income statement 193 Testing kits 20 Consolidated statement of financial position 194 Focus on immunodiagnostic platforms 22 Consolidated statement of cash flows 195 Focus on molecular diagnostics technology 24 Statement of changes in consolidated shareholders’ equity 196 Interview with Luigi Cicchese - Corporate Vice President, Systems and Engineering 26 Notes to the consolidated financial statements for the years ended December 31, 2020 and December 31, 2019 198 Focus on the immunodiagnostic menu 30 General information and scope of consolidation 198 Interview with Fabrizio bonelli – Chief Scientific Officer 32 Annex I: list of equity investments with the supplemental disclosures Focus on the molecular diagnostic menu 34 required by Consob communication no. Dem/6064293 256 Interview with Giulia Minnucci – Molecular R&D Director Europe 36 Annex II: disclosure required pursuant to article 149-duodecies of the Consob issuers’ regulations 258 Research and development costs and investments 38 Certification of the statutory financial statements 259 DiaSorin, culture of excellence Interview with Stefano Ronchi - Senior Corporate Vp Human Resources 44 Statutory financial statements of DiaSorin S.p.a. at December 31, 2020 and at December 31, 2019 260 Stock ownership 48 Income statement 260 Performance of the DiaSorin stock in 2020 49 Comprehensive income statement 260 Financial communications and investor relations 50 Statement of financial position 261 Consolidated financial highlights 52 Statement of cash flows 263 Financial highlights of the Group’s parent company 53 Statement of changes in shareholders’ equity 264 Overview of the Group’s performance in 2020 and comparison with 2019 54 Notes to the financial statements of DiaSorin S.p.a. Macroeconomic scenario and the foreign exchange market 54 at December 31, 2020 and December 31, 2019 270 Overview of 2020 for the DiaSorin Group 56 Annex III: disclosure required pursuant to article 149-duodecies Review of the Group’s operating performance and financial position 58 of the Consob’s issuers’ regulations 325 Foreword 58 Certification of the statutory financial statements 326 Income statement for the years 2020 and 2019 58 Board of the statutory auditors’ report 327 Independent auditors’ report 345 Transactions resulting from non-recurring, atypical and/or unusual operations 65 Main risks and uncertainties to which DiaSorin s.P.A and the Group are exposed 65 Significant events occurring after December 31, 2019 and business outlook 67 Review of the operating performance and financial position of DiaSorin S.p.a. 67 Foreword 67 Income statement 2020 and comparison with 2019 67 Statement of financial position of the Group’s parent company at December 31, 2020 70 Related-party transactions 73 Consolidated non-financial statement at December 31, 2020, pursuant to legislative decree no. 254/2016 127 3 Annual Financial Report tests available in healthcare settings closer I am extremely proud to report Dear Shareholders, to patients while maintaining the highest another successful year where our Group delivered strong financial quality and reliability. In September, we results with record revenues, profitability and cash generation. signed a strategic partnership with MeMed - 2020 was a year that we will never forget. A year marked by the an innovative Israeli startup - to work together Letter to pandemic that forced the world to find a new balance against a on the launch of a test differentiating between backdrop of radical social and economic changes. Shareholders bacterial and viral infections on our platforms. The mix of entrepreneurial spirit and managerial capability that has All the initiatives undertaken in the year always set DiaSorin apart allowed us to provide innovative tests to spur us on to do even more for laboratories, support the fight against SARS-CoV-2. We are proud of the role we diagnostics and patients in 2021. We played in facing this emergency. are aware of our responsibility towards Our researchers developed high-quality COVID-19 diagnostic tests them, and this encourages us to strive for adopted worldwide. We launched 2 molecular diagnostic tests excellence in everything we do. and 3 immunodiagnostic tests, confirming our role in terms of In such a challenging year, I feel it is my duty innovation and excellence. And our excellence was rewarded both to thank the Group’s management team who by large sales volumes and by several governments, hospitals and steadfastly rose to the test along with the over commercial laboratories that chose our tests. 2,000 people who make DiaSorin unique. The Furthermore, our commitment to research and innovation was also responsibility, perseverance and dedication of acknowledged through BARDA funding, as proof of our Group’s their work, have touched the lives of millions of reliability and quality of our work. people around the world. Every second 10 lives The year just ended confirmed the critical role of scientific research come into contact with one of our tests, receiving The year just and diagnostics in our society. Research has, in fact, provided concrete responses that can impact their lives. ended confirmed precise diagnostic tools for the detection of COVID-19 infection and Last but not least, Dear Shareholders, let me research itself will bring us back to normality. express my gratitude to you, for placing your the critical role The fight has not been won yet and we are aware that there is still trust in us again in 2020, inspiring us to further of scientific much to be done. grow the DiaSorin Group as an international and innovative diagnostic player. research and However, 2020 for us was not just a year marked by COVID. We continued to work on several projects. Among these, it is diagnostics in our worth mentioning the project in partnership with QIAGEN for the society. Research determination of Latent Tuberculosis that, after an initial setback due to the spread of the pandemic in Europe and in the United has, in fact, States, gained momentum again in the second half of 2020. provided precise In the year just ended we received approval to market all our The Chairman Hepatitis and HIV tests in the United States, thus becoming one of Gustavo Denegri diagnostic tools the two players in the U.S. to provide a fully automated test panel for the detection of for Hepatitis and Retrovirus. At an industrial level, we confirmed our determination to expand COVID-19 infection into the Chinese market, extending the existing Chinese Joint- and research itself Venture to Shanghai Baoshan District Government, with the aim of establishing the Group’s first manufacturing and research facility in will bring us back to China positioning us as a local producer of high quality diagnostic normality. tests and thus allowing us to access new market opportunities reserved to local manufacturing companies. Lastly, in 2020 we kept our business development on track, through new strategic partnership agreements, such as the exclusive licensing agreement signed with TTP in March for the development of a “Point-of-Care” molecular platform that will make our molecular 5 Report on Operations 6 Annual Financial Report Board of Directors (appointed on April 24, 2019) Independent Auditors PricewaterhouseCoopers S.p.a. Chairman Gustavo Denegri Committees Deputy Chairman Michele Denegri (1) Board of Directors Chief Executive Officer Carlo Rosa Control, Risks and Sustainability Franco Moscetti (Chairman) & Control Bodies Directors Giancarlo Boschetti Committee Giancarlo Boschetti Stefano Altara Roberta Somati Chen Menachem Even Compensation and Nominating Giuseppe Alessandria (Chairman) (2) Franco Moscetti Committee Michele Denegri (2) (3) Giuseppe Alessandria Elisa Corghi Roberta Somati (2) Related-Party Committee Franco Moscetti (Chairman) Fiorella Altruda (2) Giuseppe Alessandria Francesca Pasinelli (2) Roberta Somati Monica Tardivo (2) Luca Melindo Tullia Todros (2) Elisa Corghi (2) Board of Statutory Auditors Chairman Monica Mannino Statutory Auditors Ottavia Alfano Matteo Michele Sutera (1) General Manager Alternates Romina Guglielmetti (2) Independent Director Cristian Tundo (3) Lead Independent Director 9 Annual Financial Report Chen Menachem Even CCO | Carlo Rosa |CEO 11 Annual Financial Report DiaSorin Companies, worldwide 26 4 branches, 6 manufacturing INNOVATION facilities 5 R&D facilities Worldwide More than 200 people dedicated to research 2000 and development Employees of innovative solutions Germany | Dietzenbach INTENATIONAL USA | Stillwater Direct presence United Kingdom | Dartford in 24 countries and through distributors in 93 countries Italy