Abitare In S p A : Annual Report 2023 ENG

STILISTI URBANI - MADE IN MILANO

ANNUAL FINANCIAL REPORT AS AT 30 SEPTEMBER 2023

STILISTI URBANI

MADE IN MILANO

SUMMARY

1. Management and control bodies
2. Group Structure

1. Letter to Shareholder
2. Highlights

13. This is us

A brief introduction to the company, from its origins to today

14. Home Configurator

The first platform for online customisation of real estate new-build residential properties

15. Homizy built to share

Vision, Mission and Strategy of Homizy.

18. Iconic projects

AbitareIn and the search for 'beauty':

• AbitareIn Maggiolina
• Milano City Village
• Trilogy Towers
• Palazzo Naviglio
• Olimpia Garden
• Savona 105
• Porta Navilgio Grande
• The Units
• Lambrate Twin Palace
• Palazzo Sintesy
• BalduccioDodici
• Frigia 7
• PalazzoGre
• Corte Naviglio
• Corte dei Principi

Report on Management

AS AT 30.09.2023

34. Report on Management

as at 30.09.2023

52. Report on Corporate Governance and Ownership Structures 2023

112. Consolidated Financial Report

AS AT 30.09.2023

118. Note to the Consolidated Financial Report

186. Financial Statements

AS AT 30.09.2023

192. Notes to the Financial Statements

206. Notes to key items of the Statement of Financial Position

222. Notes to key items in the In- come Statement

AbitareIn S.p.A.

Address

Head Office:

Viale Umbria, 32

Milano

Tel: [phone]

[e-mail]

www.abitareinspa.com

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This document, in PDF format, does not constitute fulfilment of the obligations arising from Directive 2004/109/EC (the "Transpar- ency Directive") and the Delegated Regulation (EU) 2019/815 (the "ESEF Regulation" - European Single Electronic Format) for which a special XHTML format was developed.

Management and control bodies

Board of Directors

Luigi Francesco Gozzini	Chairman and Chief Executive Officer
Marco Claudio Grillo	Chief Executive Officer
Mario Benito Mazzoleni	Independent Board member
Giuseppe Carlo Vegas	Independent Board member
Nicla Picchi	Independent Board member
Eleonora Reni	Board member

Board of Statutory Auditors

Ivano Passoni	Chairman
Marco Dorizzi	Standing statutory auditor
Matteo Ceravolo	Standing statutory auditor
Fanny Butera	Substitute statutory auditor
Mariateresa Giangreco	Substitute statutory auditor
Auditing firm	BDO Italia S.p.A.
Manager in charge of preparing	Cristiano Contini
the accounting documents

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Group structure as at 30 september 2023

AbitareIn Maggiolina S.r.l.

Milano City Village S.r.l.

Trilogy Towers S.r.l.

Palazzo Naviglio S.r.l.

Savona 105 S.r.l.

Porta Naviglio Grande S.r.l.

TheUnits S.r.l.

Lambrate Twin Palace S.r.l.

AbitareIn Development 5 S.r.l.

MyCity S.r.l.

Homizy Siiq S.p.A.

AbitareIn Development 3 S.r.l., AbitareIn Development

4 S.r.l., AbitareIn Development 6 S.r.l, AbitareIn

Development 7 S.r.l. , Mivivi S.r.l., Smartcity Siinq

S.r.l., City Zeden S.r.l., Volaplana S.r.l., Deametra Siinq

S.r.l., Immaginare S.r.l., Creare S.r.l., Hommi S.r.l.,

Housenow S.r.l., Accursio S.r.l., Citynow S.r.l., Ziro

S.r.l., Costruire In S.r.l., New Tacito S.r.l., Edimi S.r.l.,

Hub32 S.r.l., MyTime S.r.l., Just Home S.r.l.

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Disclaimer

These yearly financial statements, and in particular the sections entitled "Outlook" and "Main risks and uncertainties to which the AbitareIn Group is exposed", contain forward-looking statements. These statements are based on the Group's cur-rent expectations and projections of future events and, by their nature, are subject to an intrinsic component of risk and uncer-tainty. They refer to events and depend on circumstances that may, or may not, happen or occur in the future. Actual results may differ from those contained in these statements due to a variety of factors, such as volatility in capital and financial mar-kets, changes in macroeconomic conditions and economic growth and other changes in business conditions, changes in legisla-tion and on the institutional scenario and many other factors, including possible developments in the Covid-19 pandemic, most of which are outside the control of the Group.

Letter to Shareholders

Luigi Francesco Gozzini		Marco Claudio Grillo
Presidente		Amministratore Delegato

Dear Shareholders,

Report on the management of group AbitareIn

The AbitareIn Group specialises in implementing urban regeneration and redevelopment residential projects involving the purchase of disused or abandoned properties, their demolition and the construction of new residential complexes (both phases that are entirely outsourced through tender contracts) and, finally, their marketing. The Group mainly addresses families who buy a home to live in, focusing its development activ- ities, in particular, on the semi-central and semi-peripheral areas of the city of Milan, whose selection - the result of careful research within a portfolio of opportunities outlined by an Is-suer's internal team - is based on the socio-economic fabric, demographics and the supply and demand relationship.

Starting at the end of 2019, the Group launched the project called "Homizy". Homizy nowadays is an innovative SME, 70.7% owned by the parent company AbitareIn S.p.A., dedicated to the development of a new strategic line of business, namely the development and rental of residential properties through so-calledco-living solutions, listed on the Euronext Growth Milan market, in the Professional segment.

In particular, Homizy aims to offer young people, aged between 20 and 35, who relocate from their places of origin to a different city to pursue their career path or who want to fly the nest to become more independ- ent, a living solution that guarantees efficiency in management and maintenance, innova-tive services and spaces for socialising.

Pursuant to IFRS 8, no information is provided in relation to operating segments as this is not deemed to be material.

Today, we present AbitareIn's Annual Report for the fiscal year 2023.

The results of this fiscal year represent the maturity level achieved by our company. It has been a year filled with activities and innovations within a context still characterized by uncertainties and complexities linked to the Eu- ropean and global macroeconomic situation.

During this fiscal period, we delivered over 400 apartments to as many families, finalizing the vast majority of notarial deeds for projects such as Milano City Village, Palazzo Naviglio, and Trilogy Towers. In a time of high borrowing costs, we substantially reduced the Group's debt (by over €100 million from the peak in December 2022) thanks to strong financial discipline. We utilized a debt structure that can be considered as "self-liquidat- ing," accessed only after reaching the break-even point in sales and repaid simultaneously upon the notarization of real estate units.

Today, we stand as a mature company, with steady results and a strong asset base, ready to seize significant market opportunities. These opportunities include low competition among operators, a focus on the energy efficiency of homes as mandated by the EU Directive known as the "Green Home," and the resilience of the residential sector.

As further evidence of this achieved maturity, during this fiscal period, we decided for the first time to allocate part of our results not only to the company's growth but also to directly remunerate our shareholders. This initiative includes the commencement of a stable dividend distribution and a substantial buy-back plan.

In November of this year, we also announced the expansion of our business model. AbitareIn will now operate as a service provider to third parties, leveraging our specialized expertise in the residential development sector. With this new business opportunity, AbitareIn will offer its technological platform and competencies to other operators for marketing and communication activities, optimizing products, fine-tuning floor plans, personalizing apartments, and providing customer care. Initiating this new form of collaboration with other operators marks a significant milestone in our business development. Over the years, we have invested heavily in innovation and specialization, and today, we have reached a level of maturity and expertise that enables us to offer our knowhow to third parties.

Regarding sales, after a decline in the first half of 2023 due to increased mortgage rates and media pressure regarding the alleged "high prices" of homes in the city, prompting families to postpone home purchases in anticipation of more favorable conditions, we are now witnessing a recovery. Between September and December, we sold apartments worth over €25 million. Moreover, we are investing in streamlining our products and production processes, leveraging available technologies more efficiently to enhance the competitiveness of our offerings.

LUIGI & MARCO

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Highlights

Statement of financial position highlights

at 30.09.2023

170 M €	83 M €
Value of inventory	Loan

Key non-financial indicators

at 13.12.2023

Development Pipeline

229,000 SQM3-4

Net saleable area

2.5171-5

Apartments

Order book

4551

Apartments

208.9 M €

Total value

Construction site progress

8301

Apartments delivered

3541

Apartments under construction

49%

Loan to Cost

550 €/M2

Net saleable area purchase cost

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Projects

3702

Preliminary contracts signed

65.6M €

Advances from contracted customers

295 M €

Units delivered (value)

169 M €

Pipelines under development (as at the date of approval of this

report)

As of today, the AbitareIn Group owns 17 areas in the city of Milan (in addition to an area under development in Rome in collaboration with the Techbau Group), totaling approximately 229,000 square meters of commercial development projects, equating to 2,517 typical apartments. These various initiatives are in different stages of development.

Among the apartments in the pipeline, marketing activities (utilizing micro-campaigns) are currently ongoing for the Lambrate Twin Palace, Palazzo Sintesy, Balduccio Dodici, Frigia 7, Palazzo Grè, and Corte Naviglio projects, totaling around 540 typical apartments.

Additionally, the marketing of the Corte dei Principi Project, an initiative carried out by the Techbau Group in collaboration with AbitareIn, is currently in progress.

As of today, the order book comprises over 455 apartments sold on a preliminary basis, amounting to a value of €208.9 million, with contracted advances (guaranteed by an insurance surety bond) totaling €65.6 million.

To date, the Group has delivered 830 apartments across the AbitareIn Poste, AbitareIn Maggiolina, Olimpia Garden, Milano City Village, Trilogy Towers, and Palazzo Naviglio projects, with an overall value of €295 million. Additionally, 354 apartments are currently under construction, valued at €169 million.

• No. of appartments considering an average size of 92 sqm for marketing in free building and 82 sqm for social housing. The number of appartments actually realised and of contracts signed, without prejudice to the overall size, may vary depending on the customi- sation of the size of the units.
  2 It may differ from the no. of appartments depending on the actual size of the appartments sold. In recent transactions AbitareIn has seen a significant and progressive increase in the average size of appartments sold.
  3 This includes 12,800 sqm of commercial space equal to 140 model appartments on which development in the co living formula through the subsidiary Homizy S.p.A. is being evaluated.
  4 Of which 26,000 sqm commercial of social housing.
  5 Of which 317 appartments in of social housing.
  6 Construction site that can be launched in 12 months.

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• No. of appartments assuming an average size of 92 sqm for the marketing of free building and 82 sqm for ERS. The number of flats actually built and of contracts signed, without prejudice to the overall square footage, may vary depending on the customisation of the cut of the units.

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Projects under development

17 projects under construction or marketing located in the

areas of Milan with the highest growth rate

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STILISTI URBANI

MADE IN MILANO

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This is us

Founded in 2015 by leveraging the collective experience of over 15 years from its founding partners, Luigi Gozzini and Marco Grillo, AbitareIn swiftly emerged as the leading company in the residential real estate development market in Milan, boasting a portfolio of 23 projects in the pipeline, totaling over XX apartments.

The fusion of deep industry know-how and a high degree of innovation, digitalization, and specialization gave rise to AbitareIn's new philosophy: Home By You. It revolves entirely around the concept of personalization while benefiting from the economies of scale inherent in an industri-

alized model. All made possible through a unique platform in our sector: the Home Configurator.

In April 2016, AbitareIn was listed on the Euronext Growth Milan market (formerly AIM Italia), and since March 1, 2021, it has been listed on the Euronext STAR Milan segment of the Euronext Milan market.

AbitareIn is dedicated to urban regeneration through the demolition of disused or abandoned buildings,

contributing to the enhancement of the city's housing fabric by creating new residential interventions focused on families. These projects are characterized by strong aspirational appeal and significant aesthetic and architectural impact.

Despite AbitareIn retaining in-house expertise for site selection, project design, and obtaining regulatory approvals - pillars of its distinctive identity - the actual construction phase of projects is entrusted, through contracts, to renowned construction opera- tors. This approach helps mitigate associated risks, supported by extensive technology use that allows the company to continuously monitor construction sites and intervene promptly when necessary..

Its real estate initiatives have consistently demonstrated exceptional performance, even during years of crisis. The company has developed and perfected its product and marketing strategy through robust branding activities and the use of cutting-edge technological tools and Customer Relationship Management (CRM) methodologies.

In 2022, AbitareIn introduced an innovative project: an e-commerce platform for the online sale of homes under construction. Through this platform, the company offers customers an extremely immersive and comprehensive purchasing experience, lev-

eraging innovative technological solutions: artificial intelligence from a virtual assistant available 24 hours a day, an online apartment configu- rator, the ability to virtually experience apartments through virtual reality tools in the showroom, the option for video conference appoint- ments, as well as the digitalization of all documental and contractual steps.

Thanks to its unique business model within the Italian landscape, Abi- tareIn has garnered support from

significant national and international players in both the real estate and financial sectors, who have become part of the company's shareholder base and have accompanied the company on its growth jour- ney. The Group's "compartmentalized" structure, combined with project marketing methods (sales preceding construction), ensure project self-financing and the company's asset solidity.

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Home Configurator, the first platform for online customization

The meeting of the visions of the founders, Luigi Gozzini and Marco Grillo, gave birth to AbitareIn S.p.A. and revolutionized the paradigm of residential development.

The two developers, aware of the importance of redefining the typical dynamics of the real estate sector, introduced processes of innovation, computerization, and industrialization into the residential sector similar to those in other industries, overcoming physical limitations thanks to the AbitareIn Corporate E-Commerce Platform dedicated to selling houses online. This technology, launched in 2022, allows the visualization of all AbitareIn's real estate proposals in a single web environment, selecting different housing solutions, requesting quotes, booking appointments at the physical showroom (also enhanced with digital hardware and software technologies), or in video mode, and making purchases online.

To meet the increasing demand of users oriented not only towards online purchases but also towards customiza-

tion, the Home Configurator was developed, an innovative and free tool that enables all customers to select finishes and configure their own home independently, thanks

to numerous customization options developed directly by our architects in collaboration with our part- ners.

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Homizy built to share

Homizy is the business line of the Group currently developing rental properties in Milan in the form of CO-

LIVING.

Homizy represents the residential application of the sharing economy: sharing of goods, spaces, and services to create new opportunities for social interaction, through pervasive use of technology, ensuring better management efficiency and resource optimization..

Mission

Transforming "living" into a SHARED EXPERIENCE

• by fostering connections between people.

Making everyone who has embarked on a personal

• and professional growth journey in Milan "FEEL AT HOME".

Target

THE TIPICAL CO-RESIDENT

• Indicative age between 20 and 35 years old
• Has embarked on a professional journey coming from a city other than Milan or, while working, is seeking independent housing compared to family
• Rents directly (B2C) or receives the room as a corporate benefit (B2B) - advantageous taxation
• Has an average income of less than 2,500 euros per month
• Is a user who is not yet considering the "step" of purchasing a house

THE PROFILE OF THE CO-RESIDENT

• They are experiencing the characteristics of a new, more fluid and dynamic work world that demands greater adaptability
• They are attentive to more dynamic housing solutions, integrated with key ancillary services, for a living experience better suited to their needs
• They are interested in solutions that foster cohesion, social interaction, and both personal and professional relationships
• This is likely their first house hunt, and they choose co- living not solely for economic reasons
• They anticipate an average stay of 9 to 12 months

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The Homizy product

Homizy concept

Ad hoc smart building

New trendy and smart residential complexes, specifically designed and built for a new rental

• model, ensuring efficiency in management and maintenance, innovative services, and socializa- tion spaces.

Innovative and unique product

• To meet a new type of demand, anticipating market trends and aiming to quickly attain a lead- ing position in the industry.

AIn Know how and market segment

By leveraging economies of scale and AbitareIn's know-how, HZY introduces a product in Mi-

• lan priced between 650-900 € per unit, featuring an innovative «all-inclusive» formula. This comes at a market phase where supply is very limited and not in line with current market de- mands. The concepts of redeveloping semi-central and peripheral areas remain valid for AIn.

Homizy business model

How we do it

TECHNOLOGY

Homizy leverages the most innovative existing technologies both in development and for the subsequent daily management of buildings. It will harness the know-how of its parent company, AbitareIn, to acquire software enabling efficient management of every process.

USER FRIENDLY APP

Users will benefit from significant technological support through a dedicated app: access to rooms and common areas, contract management, payments, and maintenance, along with a social section and community, will all be entirely handled through the Homizy app.

ENERGY EFFICIENCY

Environmental sustainability is one of Homizy's priorities. The properties will be built in energy class A, with system solutions that allow a payback on consumption within 6-7 years.

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AbitareIn Maggiolina

RESERVED. LIGHTWEIGHT. REFINED.

AbitareIn Maggiolina is the second project carried out by AbitareIn, completed and delivered from 2020 onwards.

125 apartments distributed in the two buildings, Sky Tower and Maggiolina Gardens, originating from the complete regeneration of an abandoned and degraded area, which used to house the headquarters of the daily newspaper "Il Giorno".

In the AbitareIn Maggiolina project, architecture and nature merge and liaise to create a unique backdrop in the heart of the Maggiolina neighbourhood, known for its natural beauty spots on the Martesana and for its orchards and splendid villas.

The icon of the project is the system of suspended white floors, of an evident formal clarity, which rise one after the other, leaving free and flexible the space between them.

Each terrace becomes a supporting structure for nature to develop. A skilful alternation of hanging parapets gives a green tone to the outdoor private areas, transforming them into authentic high-rise gardens, irresistible features, corners of paradise to enjoy the Milan skyline from.

The materials used for the external cladding and the interiors also echo the effects and the forms of nature. All glazed components, from the generous openings to the parapets, soften the bulk of the two buildings - Sky Tower and Maggi- olina Gardens - making them light and contemporary.

Linking the residential development to the city, an enormous park offering a completely immersive experience: lawned and paved areas, environments where a range of shrubbery creates a natural backdrop.

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Milano City Village

DYNAMIC. MULTIFACETED. HARMONIUS.

The former industrial site at via Tacito was a perfect example of urban void, which has finally been given a brand new lease of life with the Milano City Village project.

The design concept takes inspiration from the square, as a centralising element, a catalyst of social interaction and an accelerator of relationships, a space placed at the centre, metaphorically and physically, of the built complex.

In keeping with the style of the typical Milanese inner courtyards, Milano City Village has its own internal space, a place where one can rediscover the essence of the human dimension.

A courtyard that is a square, a meeting place, a place of passage but also a space to relax in, in which to rediscover a sense of communion with oneself and the community.

In Milano City Village the mosaic effect of the facade features ample, deep loggias, jutting out here and there like delightful suspended terraces. The contrast between solids and voids enlivens the facades and creates a new architectural landscape: an urban scenario that was not there before, mending the tear between the consolidated historical city and the new city in expansion.

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