1st Quarter - SAES Getters

SAES Getters Group – First Quarter 2005 – Report on OperationsSAES GETTERS S.p.A.Capital Stock Euro 12,220,000 fully paid-inAddress of Principal Executive Offices:Viale Italia, 77 – 20020 Lainate (Milan), ItalyRegistered with the Milan Court Companies Register no. 00774910152Report on Operations – 1 st Quarter 2005Quarterly report as of March 31, 2005 has been prepared according to the internationalaccounting standards (IFRS).Quarterly consolidated net sales were €32.4 million compared to €36.5 million in the year-agoperiod, reflecting a decrease by 11.2% (-8.7% excluding the exchange rate effect).Consolidated net income was €4 million compared to €4.8 million in the year-ago period,including the capital gain related to the sale of the business line of Molecular Analytics, Inc.Excluding non recurring items, consolidated net income would have been equal to €4.3million, compared to €4.2 million in the first quarter 2004.Sales of components for liquid crystal displays further increased, becoming for the first timethe largest business area, also higher than the cathode ray tubes business area. Regarding thecathode ray tube market, on the contrary, a reduction in sales affected particularly the plant inLainate. The Company is evaluating possible actions to adapt to the market scenario.As from January 1, 2005, as a result of the new business strategy and the Group's reducedpresence in activities related to semiconductors, a reorganization of some business areas hasbeen implemented. In particular, the Equipment Business Unit has been included within theIndustrial Applications Business Unit as a Business Area and renamed Semiconductors.Furthermore, also further to the introduction of the new international accounting principlesIFRS, corporate costs and research and development costs related to the diversification in theadvanced materials market have been disclosed separately with respect to the InformationDisplays and Industrial Applications Business Units.1

SAES Getters Group – First Quarter 2005 – Report on OperationsCONSOLIDATED FINANCIAL STATEMENTSSaes Getters S.p.A. and Subsidiaries - Consolidated Income StatementThousands of euroThree months ended March 31 2005 2004Total net sales 32,428 36,525Cost of sales (15,629) (19,508)Gross profit 16,799 17,017R & D expenses (3,269) (3,321)Selling expenses (3,456) (3,952)G&A expenses (3,295) (3,300)Total operating expenses (10,020) (10,573)Other income (expenses), net (440) 341Operating income 6,339 6,785Interest and other financial income, net 317 315Foreign exchange gains (losses), net 311 342Income before taxes 6,967 7,442Income taxes (2,922) (2,633)Net income 4,045 4,809Saes Getters S.p.A. and Subsidiaries - Consolidated Income Statement per Business UnitThousands of euro1 st qr.2005Total1 st qr.2004InformationDisplays1 st qr.20051 st qr.2004IndustrialApplications1 st qr.20051 st qr.2004Advanced Materials& Corporate Costs1 st qr. 1 st qr.2005 2004Total net sales 32,428 36,525 19,034 20,374 13,284 16,151 110 0Cost of sales (15,629) (19,508) (7,498) (8,770) (7,889) (10,649) (242) (89)Gross profit (loss) 16,799 17,017 11,536 11,604 5,395 5,502 (132) (89)% on net sales 51.8% 46.6% 60.6% 57.0% 40.6% 34.1% -120.0% -Operating expenses andother income/expenses (10,460) (10,232) (4,028) (3,610) (4,143) (4,978) (2,289) (1,644)Operating income (loss) 6,339 6,785 7,508 7,994 1,252 524 (2,421) (1,733)% on net sales 19.5% 18.6% 39.4% 39.2% 9.4% 3.2% -2,200.9% -Saes Getters S.p.A. and Subsidiaries - Consolidated Income per ShareEuro20051 st qr.*20041 st qr.**Net income per ordinary share 0.1803 0.2079Net income per savings share 0.1803 0.2079* Calculated with reference to 22,731,969 shares** Calculated with reference to 23,500,000 shares2

SAES Getters Group – First Quarter 2005 – Report on OperationsSaes Getters S.p.A. and Subsidiaries – Consolidated Balance SheetThousands of euroMar 31, 2005 Dec 31, 2004Property, plant and equipment, net 60,448 59,769Intangible assets, net 3,285 3,586Other non current assets 9,736 10,063Current assets 145,765 142,260Total Assets 219,234 215,678Shareholders’ equity 173,275 169,250Non current liabilities 17,793 16,493Current liabilities 28,166 29,935Total Liabilities and Shareholders’ Equity 219,234 215,678Saes Getters S.p.A. and Subsidiaries - Consolidated Net Financial PositionThousands of euroMar 31, 2005 Jan 1, 2005Financial assetsCash and banks 91,445 87,511Other current assets* 0 0Total current assets 91,445 87,511Total non current assets 0 0Total financial assets 91,445 87,511Financial liabilitiesBank overdraft 1,003 3,111Current portion of long term debt 252 255Total current liabilities 1,255 3,366Long term debt, net of current portion 3,691 3,691Total non current liabilities 3,691 3,691Total financial liabilities 4,946 7,057Net financial position 86,499 80,454* The Company has adopted the possibility allowed by the IFRS 1 to define the transition date to the IAS32 and 39 as from January 1, 2005. Therefore, treasury shares have been deducted from net equity as fromJanuary 1, 2005.3

SAES Getters Group – First Quarter 2005 – Report on OperationsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSAccounting Principles and MethodsOn the basis of EC Regulation no. 1606/2002, as from the 2005 financial year, Companieswhose shares are traded on a European regulated market are required to adopt theinternational accounting standards (IFRS, previously called IAS) in the preparation ofconsolidated financial statements.The Quarterly Report has been prepared in accordance with Article 82 and Article 82 – bis ofthe “Regulations for the implementation of the Legislative Decree No. 58 of February 24,1998 on the activities of issuers of securities” (Consob Resolution No. 11971 of May 14,1999, as amended), amended by the Consob Resolution No. 14990 of April 14, 2005.Pursuant to the above mentioned Article 82, the Quarterly Report has been prepared applyingfor evaluations the international accounting standards (IFRS) according to the content statedby Exhibit 3D of the same Regulations. Therefore the Quarterly Report as of March 31, 2005has not been prepared according to the accounting standard concerning disclosure in interimreports (IAS 34 “Interim financial reporting”).According to the international accounting standard IFRS 1 “First-time adoption ofInternational Financial Reporting Standards”, the first annual or interim financial statementsprepared in compliance with the international accounting standards include at least one yearof compared information under the same standards.In the first time adoption of international accounting standards IFRS the Company tookadvantage of the following possibilities allowed by the IFRS 1:- to define the transition date for the IAS 32 (“Financial Instruments: Disclosure andPresentation”) and IAS 39 (“Financial Instruments: Recognition and Measurement”)as from January 1, 2005. Therefore comparative data reported for the previous perioddo not consider the impact of such standards;- possibility of avoiding retrospective application of IFRS 3 (“Business Combinations”)to companies or business assets acquisitions made before the date of transition toIFRS;- booking of cumulative actuarial gains and losses on employee benefits existing at thetransition date to IFRS, while the “corridor approach” will be applied, as indicated byIAS 19, for actuarial gains and losses originated as from January 1, 2004;- cumulative translation differences arising from the consolidation of foreignsubsidiaries are deemed to be zero as of January 1, 2004. Gains or losses from anypossible future disposal of foreign subsidiaries will include only translationdifferences originated after the date of transition to IFRS;- adoption of the fair value option as deemed cost for some categories of fixed assetswhich were revaluated during previous years.The application of IAS 32 and IAS 39 determined an adjustment of the net equity openingbalance as of January 1, 2005 related to the following items:- Treasury shares: reclassified as a reduction of the net equity (€2,505 thousand);4

SAES Getters Group – First Quarter 2005 – Report on Operations- Derivatives financial instruments: increase by €1,162 thousand of the net equity due tothe accounting at fair value.The Quarterly Report is consistent with the accounting principles that will be used for thepreparation of annual consolidated financial statements for the first time starting from 2005,insofar as they are applicable.Estimates procedures adopted to prepare the Quarterly Report are substantially similar tothose normally applicable in the preparation of annual consolidated financial statementsstarting from 2005.No changes in the consolidation area occurred in the first quarter of 2005.To be noticed that quarterly reports are unaudited.Net Sales by Business Area and by Geographic Location of CustomerSaes Getters S.p.A. and Subsidiaries - Consolidated Net Sales per Business AreaThousands of euro (except %)Business Area 20051 st qr.20041 st qr.Totaldifference(%)Price-qtyeffect(%)Exchangerate effect(%)Cathode Ray Tubes 8,740 11,223 -22.1% -18.5% -3.6%Flat Panel Displays 10,294 9,151 12.5% 13.2% -0.7%Subtotal Information Displays 19,034 20,374 -6.6% -4.6% -2.0%Lamps 2,899 3,086 -6.1% -4.7% -1.4%Electronic Devices 3,048 2,696 13.1% 15.4% -2.3%Vacuum Systems and ThermalInsulation 1,419 1,575 -9.9% -7.1% -2.8%Semiconductors 5,918 8,794 -32.7% -28.1% -4.6%Subtotal Industrial Applications 13,284 16,151 -17.8% -14.6% -3.2%Subtotal Advanced Materials 110 0 n.a. n.a. n.a.Total Net Sales 32,428 36,525 -11.2% -8.7% -2.5%Index:Information Displays Business UnitCathode Ray TubesBarium getters for cathode ray tubesFlat Panel DisplaysGetters and metal dispensers for flat panel displaysIndustrial Applications Business UnitLampsGetters and metal dispensers used in discharge lamps and fluorescentlampsElectronic DevicesGetters and metal dispensers for electron vacuum devicesVacuum Systems and Thermal Pumps for vacuum systems and products for thermal insulationInsulationSemiconductorsGas purifier systems for semiconductor industry and other industriesand installations for the telecommunications industryAdvanced Materials Business Development UnitAdvanced MaterialsGetters for microelectronic and micromechanical systems, opticalcrystals, shape memory alloys and metalorganic precursors5

SAES Getters Group – First Quarter 2005 – Report on OperationsSaes Getters S.p.A. and Subsidiaries - Consolidated Net Sales by Geographic Location of CustomerThousands of euro20051 st qr.20041 st qr.Italy 140 395Other EU and European countries 5,564 6,254North America 5,470 6,685Japan 9,030 7,511Asia (excluding Japan) 11,632 14,976Rest of the World 592 704Total Net Sales 32,428 36,525Consolidated net sales were €32.4 million compared to €36.5 million in the year-ago period,reflecting a decrease by 11.2% ∗ (-8.7% excluding the exchange rate effect).Information Displays Business UnitConsolidated revenues of the Information Displays Business Unit were €19 million inthe first quarter 2005, compared to €20.4 million in the same period one year-ago,representing a decrease by 6.6% (-4.6% net of exchange rate effect).In particular, net sales of the Cathode Ray Tubes Business Area decreased by 22.1% to€8.7 million from €11.2 million in the same period one year-ago. Sales net of theexchange rate effect drop by 18.5% because of the reduction in the cathode ray tubemarket. The strengthening of the euro mainly with respect to the US dollar caused anegative exchange rate effect by 3.6%.Revenues of the Flat Panel Displays Business Area were €10.3 million with respect to€9.2 million in the first quarter 2004, reflecting an increase by 12.5%. The rise wasmainly due to a stronger demand of mercury dispensers for cold cathode lamps used asback-lighting of liquid crystal displays (+13.2%). The exchange rate effect was negativeby 0.7%.Gross profit for the Information Displays Business Unit was €11.5 million in the firstquarter of 2005 basically stable compared to €11.6 million in the same period of 2004.Operating income for the Information Displays Business Unit was equal to €7.5million in the first quarter of 2005 compared to €8 million in the corresponding quarterof 2004.∗ To be noticed the exit from the analytical technologies business area and quality assurance and quality controlservices related to semiconductors in 2004 (sales equal to €2.3 million in the first quarter 2004).6

SAES Getters Group – First Quarter 2005 – Report on OperationsIndustrial Applications Business UnitConsolidated revenues of the Industrial Applications Business Unit were €13.3 millionin the first quarter of 2005 with respect to €16.2 million in the same period one yearago,reflecting a decrease by 17.8% (-14.6% net of exchange rate effect). To be noticedthe exit from the analytical technologies business area and quality assurance and qualitycontrol services related to semiconductors in 2004 (sales equal to €2.3 million in thefirst quarter 2004).Revenues of the Lamps Business Area were €2.9 million with respect to €3.1 million inthe first quarter 2004, reflecting a reduction by 6.1%. Sales decreased mainly because oflower sales of components for discharge lamps (-4.7%) and the negative exchange rateeffect (-1.4%).Revenues from the Electronic Devices Business Area grew by 13.1% to €3 million from€2.7 million in the first quarter 2004. The growth net of exchange rate effect, equal to15.4%, was mainly due to higher sales of non evaporable getters for electronic tubesand opto-electronic devices. The exchange rate effect caused a decrease by 2.3%.Net sales of the Vacuum Systems and Thermal Insulation Business Area were €1.4million with respect to €1.6 million in the same period of the previous year. Thedecrease by 9.9% was due to lower sales of getters for thermal insulation (-7.1%) andthe negative exchange rate effect (-2.8%).Net sales of the Semiconductors Business Area was equal to €5.9 million compared to€8.8 million in the same period of 2004 (-32.7%). The decrease in sales was basicallydue to the exit from the analytical technologies business area and quality assurance andquality control services related to semiconductors.Gross profit for the Industrial Applications Business Unit was €5.4 million in the firstquarter of 2005 basically stable compared to €5.5 million in the same period of 2004.Operating income for the Industrial Applications Business Unit increased to €1.3million in the first quarter of 2005 from €0.5 million in the corresponding quarter of2004 mainly because of the restructurings in the Semiconductors Business Area. To benoticed that in the first quarter 2004 a capital gain was included with reference to thesale of the business line of IMS gas analyzers of Molecular Analytics, Inc. (renamedNew Trace Analytical, Inc).Advanced Materials Business Development Unit & Corporate CostsConsolidated revenues of the Advanced Materials Business Development Unit were€0.1 million in the first quarter of 2005.Gross loss for the Advanced Materials Business Development Unit was equal to €0.1million in the first quarter 2005.7

SAES Getters Group – First Quarter 2005 – Report on OperationsCorporate costs and operating costs for the Advanced Materials Business DevelopmentUnit in the first quarter of 2005 were €2.3 million, compared to €1.6 million in the yearagoperiod. To be noticed that in the first quarter 2005 some non recurring costs relatedto the voluntary conversion of savings shares into ordinary share that took place inJanuary 2005 were charged.Consolidated gross profit was equal to €16.8 million in the first quarter 2005, compared to€17 million in the same quarter of 2004. Consolidated gross profit in terms of sales was51.8% compared to 46.6% in the first quarter 2004.Total operating expenses were €10 million, compared to €10.6 million in the first quarter2004.Consolidated EBITDA was €9.3 million in the first quarter 2005 compared to €9.9 million inthe same quarter of 2004. Consolidated EBITDA in terms of sales was 28.6% compared to27% in the first quarter 2004.Consolidated operating income was €6.3 million in the three months ended March 31, 2005from €6.8 million in the year-ago period. The R.O.S. (Return on Sales) ratio was equal to19.5% in the first quarter 2005 compared to 18.6% in the same period of 2004.Income taxes were €2.9 million in the three months ended March 31, 2005, compared to €2.6million in the three months ended March 31, 2004. As a percentage of income before taxes,income taxes were 41.9% in the first quarter of 2005, compared to 35.4% in the first quarterof 2004. The increase was due to the different contribution of the economic results from theGroup Companies.Consolidated net income was €4 million in the first quarter 2005 compared to €4.8 million inthe correspondent quarter of 2004.Excluding non recurring items, consolidated net income would have been equal to €4.3million, compared to €4.2 million in the first quarter 2004.Net income per ordinary share and savings share was €0.1803 for the first quarter 2005,compared to €0.2079 in the year-ago period.The Group’s net financial position increased to €86.5 million as of March 31, 2005, from€80.5 million as of January 1, 2005. Cash flows provided by self-financing were equal to €7.4million. Investments in tangible fixed assets were equal to €2.4 million.Business performance outlookThe Company is confident on 2005 forecasts. In particular the Company forecasts an increasein sales of components for liquid crystal displays, against a decrease in sales of getters forcathode ray tubes, because of the maturity of the market. Possible actions will be evaluated to8

SAES Getters Group – First Quarter 2005 – Report on Operationskeep adequate competitiveness. Other industrial markets in which the Group operates shouldconfirm stability or growth.Finally, development activities will continue with reference to advanced materials, some ofwhich are already in the stage of launch into the market.As from today Saes Getters S.p.A. and Saes Advanced Technologies S.p.A. entered into anagreement for the consolidated taxation with S.G.G. Holding S.p.A., Saes Getters S.p.A.’sparent company, exercising the option for the Group taxation under article 117 TUIR, witheffects under article 118 TUIR.The Group’s economic results for the period will continue to be influenced by the exchangerates of the Euro against the major currencies. The Group entered into foreign exchangecontracts to hedge its foreign exchange risk against US dollar.Lainate, Milan - Italy, May 12, 2005On behalf of the Board of DirectorsThe ChairmanPaolo della Porta9

SAES Getters Group – First Quarter 2005 – Report on OperationsAppendix pursuant to Article 82-bis of the “Regulations for the implementation of theLegislative Decree No. 58 of February 24, 1998 on the activities of issuers of securities”(Consob Resolution No. 11971 of May 14, 1999, as amended), enacted by the ConsobResolution No. 14990 of April 14, 2005.Pursuant to sub-section 4 of Art. 82-bis of the above mentioned Regulations, reconciliationsrequired by paragraphs no. 39 and 40 of IFRS 1 “First-time adoption of InternationalFinancial Reporting Standards”, including the disclosure on methods of preparation and itemsin the reconciliations, are reported below.Balance sheet and income statement reported under the layout required by the LegislativeDecree No. 127/1991 have been restated in short form to comply with the presentation criteriawhich will be adopted to prepare IFRS financial statements.The standards adopted in the reconciliations could be different from the internationalaccounting standards effective as of December 31, 2005, due to future stance of the EuropeanCommission on the approval of the standards or to the subsequent issue of new accountingstandards, interpretations or implementation guidances issued by the International AccountingStandards Board (IASB) or by the International Financial Reporting Interpretation Committee(IFRIC).Reconta Ernst & Young S.p.A.’s audit on such reconciliation as of the date of transition toIFRS and as of December 31, 2004 is ongoing.Consolidated Balance Sheet reconciliation table as of the date of transition to IFRS(January 1, 2004)Thousands of euroNotesJan 1, 2004Italian GaapDifferentaccountingstandards onopening net equityJan 1, 2004IFRS1 Property, plant and equipment, net 59,261 5,151 64,4122 Intangible assets, net 4,369 (30) 4,3393 Other non current assets 12,916 (1,925) 10,9914 Current assets 134,986 (3) 134,983Total Assets 211,532 3,193 214,7255 Shareholders’ equity 154,778 3,057 157,8356 Non current liabilities 12,862 136 12,998Current liabilities 43,892 - 43,892Total Liabilities and Shareholders’ Equity 211,532 3,193 214,72510

SAES Getters Group – First Quarter 2005 – Report on OperationsConsolidated Balance Sheet reconciliation table as of December 31, 2004Thousands of euroNotesDec 31, 2004Italian GaapDifferent accountingstandards on net equityas of Dec 31, 2004Dec 31, 2004IFRS1 Property, plant and equipment, net 54,929 4,840 59,7692 Intangible assets, net 3,604 (18) 3,5863 Other non current assets 11,937 (1,874) 10,0634 Current assets 142,016 244 142,260Total Assets 212,486 3,192 215,6785 Shareholders’ equity 166,187 3,063 169,2506 Non current liabilities 16,364 129 16,493Current liabilities 29,935 - 29,935Total Liabilities and Shareholders’ Equity 212,486 3,192 215,678Notes to the Consolidated Balance Sheet reconciliation1. Applying the finance method to leases, as required by IAS 17, the net book value oftangible fixed assets acquired by means of leases contracts by Italian Companies of theGroup was booked in the opening net equity prepared according to IFRS. As of December31, 2003 all leases contracts were terminated, financial liabilities were settled and theredemption of assets took place. According to Italian Gaap, no asset was booked until themoment of redemption in respect of financial leases, while disclosure on effects of thefinance method was in the notes to financial statements.2. Applying IAS 38, some installation and expansion costs which were booked as assetsunder Italian Gaap did not meet the conditions to recognize an intangible asset.3. Fiscal effect related to the adjustments for application of IFRS.4. Evaluation of construction contracts of the Parent Company based on the stage ofcompletion, as required by IAS 11, and write off of spare parts in inventory not allowed tobe booked as an asset under IAS 2.5. The effect of the transition to IFRS as of December 31, 2003 was booked in a net equityreserve, as required by IFRS 1.6. Applying IAS 19, defined benefit plans for employee benefits have been treated accordingto actuarial methodology. Such evaluation reduced the opening liability by €162 thousandat Group level. The same balance sheet line includes deferred tax liabilities booked on11

SAES Getters Group – First Quarter 2005 – Report on Operationsopening by an Italian Company of the Group relating to fiscal effect due to the applicationof IAS 17; such deferred tax liabilities amounted to €298 thousand on opening.Consolidated Income Statement reconciliation table as of December 31, 2004Thousands of euroNotes2004Italian GaapDifferentaccountingstandards2004IFRSTotal net sales 141,649 - 141,6491, 2, 3, 4 Cost of sales (69,913) 155 (69,758)Gross profit 71,736 155 71,8911 R & D expenses (13,428) (129) (13,557)3 Selling expenses (15,966) (3) (15,969)1, 4 G&A expenses (13,255) (72) (13,327)Total operating expenses (42,649) (204) (42,853)Other income (expenses), net (387) - (387)Operating income 28,700 (49) 28,651Interest and other financial income, net 1,473 - 1,473Foreign exchange gains (losses), net (1,133) - (1,133)Income before taxes 29,040 (49) 28,9915 Income taxes (12,899) 55 (12,844)Net income 16,141 6 16,147Consolidated Income Statement reconciliation table as of March 31, 2004Thousands of euro (Unaudited data)Notes20041 st qr.Italian Gaap*Differentaccountingstandards20041 st qr.IFRS*Total net sales 36,525 - 36,5251, 2, 3, 4 Cost of sales (19,480) (28) (19,508)Gross profit 17,045 (28) 17,0171 R & D expenses (3,288) (33) (3,321)3 Selling expenses (3,949) (3) (3,952)1, 4 G&A expenses (3,282) (18) (3,300)Total operating expenses (10,519) (54) (10,573)Other income (expenses), net 341 - 341Operating income 6,867 (82) 6,785Interest and other financial income, net 315 - 315Foreign exchange gains (losses), net 342 - 342Income before taxes 7,524 (82) 7,4425 Income taxes (2,765) 132 (2,633)Net income 4,759 50 4,80912

SAES Getters Group – First Quarter 2005 – Report on OperationsNotes to the Consolidated Income Statement reconciliation1. Applying the finance method to leases, as required by IAS 17, depreciation of tangiblefixed assets was booked according to their plans. According to Italian Gaap the rent wasbooked for the quota attributable to the period.Depreciation of tangibile fixed assets acquired by means of leases contracts are allocatedas follows in the income statement:Depreciation IAS 17 2004 20041 st qr.Cost of sales 110 30R & D expenses 129 33G&A expenses 78 19Total 317 82As of December 31, 2003 all leases contracts were terminated, as a consequence there wasno other impact due to the transition to IFRS.2. Applying IAS 11, construction contracts for the production of tangible assets are valued onthe basis of the stage of completion; the margin was considered according to accrual basisaccounting (€251 thousand for 2004 and €5 thousand for the first quarter of 2004).According to Italian Gaap, constructive contracts of the Parent Company were valued atcost and the margin was booked when invoiced.3. Applying IAS 19, defined benefit plans for employee benefits have been treated accordingto actuarial methodology. Income statement effect due to the involved Group Companies(Italian companies, Japanese subsidiary and Korean subsidiary) was €1 thousand for 2004.4. Amortization of installation and expansion costs written off in application of IAS 38 waseliminated. Amortization was allocated in cost of sales and general and administrativeexpenses and was €16 thousand for 2004 and €4 thousand for the first quarter of 2004.5. Income taxes line was affected by the fiscal effects of the above mentioned adjustmentsand by the impact of the tax rate applicable to the buyer when calculating deferred taxassets on consolidation adjustments to eliminate the intercompany profit in inventory, asper IAS 12. According to Italian Gaap, the tax rate of the country of the seller was applied.No significant impact on the 2004 cash flow statement due to IFRS transition is to be pointedout.13