Abitare In S p A : Approval of interim Directors' report as at 31 December 2021

ABITAREIN: THE BOARD OF DIRECTORS APPROVES THE INTERIM DIRECTORS' REPORT AS AT

31 DECEMBER 2021

(1st QUARTER OF THE FINANCIAL YEAR)

CONSOLIDATED REVENUE EQUAL TO EURO 35.5 MLN

CONSOLIDATED ADJ EBT1 EQUAL TO EURO 8.7 MLN

THE INCREASE IN CONSTRUCTION COSTS FOR CONSTRUCTION CAUSED BY THE SHORTAGE

OF RAW MATERIALS IS RECOGNISED IN THE FINANCIAL STATEMENTS

CONFIRMED THE POSTPONEMENT TO THE FISCAL YEAR 2023 OF THE DELIVERY OF THE 420 APARTMENTS OF THE PROJECTS MILANO CITY VILLAGE, PALAZZO NAVIGLIO AND TRILOGY TOWERS

THE MAIN MARKET TRENDS ARE CONFIRMED: GROWING DEMAND, INSUFFICIENT SUPPLY

AND HOUSE PRICES INCREASING SHARPLY

FINANCIAL HIGHLIGHTS (consolidated figures as at 31 December 2021 - prepared in accordance with IFRS international accounting standards)

• CONSOLIDATED REVENUE EQUAL TO EURO 35.5 MLN (Euro 44.0 mln as at 31/12/2020). Revenue net of purchases of new areas amounts to Euro 19.3 mln (Euro 16.6 mln as at 31/12/2020)
• CONSOLIDATED ADJ1 EBT EQUAL TO EURO 8.7 MLN (Euro 3.1 mln as at 31/12/2020)
• GROUP'S CONSOLIDATED NET PROFIT EQUAL TO EURO 7.7 MLN (Euro 2.9 mln as at 31/12/2020)
• NET FINANCIAL POSITION EQUAL TO EURO 84.4 MLN (Euro 75.1 mln as at 30/09/2021), Euro 68.6 mln net of the Euro 15.8 mln invested to purchase new areas

• Adjusted due to higher notional costs (Euro 0.4 million) as a result of applying IFRS 2 in relation to the allocation of the Stock Grant established in favour of the management

Abitare In S.p.A.

Registered office: Via degli Olivetani 10/12, 20123 Milan - Operating Headquarters: Viale Umbria 32, 20135 Milan Company listed on STAR segment of the MTA - Italian Equities Market (ticker ABT.MI) - VAT no. 09281610965 - Tel. +39 / 02 - 67 02 550

[e-mail] - [e-mail]

Share capital Euro 132,654.06 fully paid in - Share premium reserve: € 40,743,804

• GROUP CONSOLIDATED EQUITY EQUAL TO EURO 84.5 MLN (Euro 72.4 mln as at 30/09/2021)

HIGHLIGHTS AT THE CURRENT DATE

• Pipeline, property under development: 300,000 square meters of net saleable area for 3,318 standard-size units2 (of which 317 of social housing)
• Average net saleable area purchase cost: Euro 551/m2 of net saleable area
• Order book: 618 standard-size units3 for Euro 254 mln (net of the units delivered)
• Down payments/deposits based on preliminary conveyance agreements signed: Euro 79 million
• Standard-sizeunits3 delivered: 381 for Euro 121 mln
• Mortgages and loans approved: Euro 249.6 mln of which Euro 109 million used

Milan, 14 February 2022 - The Board of Directors of AbitareIn S.p.A., a leading Milan based company operating in residential development, listed on the Euronext Milan market, Euronext STAR Milan segment, today approved the consolidated Interim Directors' Report as at 31 December 2021, relating to the first quarter of the year (please note that the Company ends its financial year on 30 September).

Marco Grillo, CEO of the Company, commented: "The residential market in our city continues to grow, in terms of both volumes and sales prices, even exceeding pre-pandemic figures. The adjustment of our business strategies to the new economic context and the introduction of the new "micro-campaign" commercial methodology will allow us to better align the sales prices of the apartments with the potential prices of a fast-growing market while reducing the time to delivery for customers.

• No. of apartments, considering an average surface area of 92 m2 for the marketing in unrestricted building and 82 m2 for social housing. The actual number of apartments built and for which contracts have been signed - without prejudice to the combined floor area (m2) - may vary depending on the custom size of the real estate units

Abitare In S.p.A.

Registered office: Via degli Olivetani 10/12, 20123 Milan - Operating Headquarters: Viale Umbria 32, 20135 Milan Company listed on STAR segment of the MTA - Italian Equities Market (ticker ABT.MI) - VAT no. 09281610965 - Tel. +39 / 02 - 67 02 550

[e-mail] - [e-mail]

Share capital Euro 132,654.06 fully paid in - Share premium reserve: € 40,743,804

Our mission, in the current context where there is still a huge gap between supply and demand for houses, is to continue to offer a quality product, at affordable prices, for Milanese families."

Luigi Gozzini, Chairman, continued: "The first quarter of the year is still characterised by the effects of the health emergency. The increase in costs to procure raw materials that is affecting construction companies is a daily topic. Our aim is to continue to support the supply chain and ensure that our customers receive a quality product in the times agreed.

We are very proud of our product, which makes a real contribution to the renovation of an outdated, non-performing and highly polluting housing stock, which poses a real challenge for the future of our country. In addition, thanks to the high standards followed to build them, our projects allow access to those opportunities offered by the various tax benefits granted for this very purpose."

Summary of the main consolidated economic and financial results as at 31 December 2021

The first quarter of the year ended with CONSOLIDATED REVENUE equal to Euro 35.5 mln (Euro

44 mln in the same period of the previous year), deriving from:

• Euro 10 mln change in inventory for progress of works, net of discharge due to delivery (consequent to notarial deed) of apartments to customers (negative for Euro 4.8 mln in the first quarter of the previous year);
• Euro 9 mln in Sales Revenue deriving from notarial deeds for the real estate units (Euro
• 1. mln in the first quarter of the previous year);
• Euro 16.2 mln change in inventory due to the purchase of new real estate complexes (Euro
• 1. mln in the first quarter of the previous year).

Production progress is equal to Euro 19.5 mln (Euro 13.5 mln in the first quarter of the previous year).

CONSOLIDATED ADJ 3 EBT amounts to Euro 8.7 million. The EBT figure was prudentially adjusted downwards to take account of the increase in the construction costs on construction sites scheduled for delivery in the coming 15 months. The adjustment, totalling about Euro 5.6 mln, is mainly due to the agreements finalised with the contractors on these construction sites in order to support the production chain and guarantee customers the delivery of a quality product without any further deadline slippages.

• Adjusted due to higher notional costs (Euro 0.4 million) as a result of applying IFRS 2 in relation to the allocation of the Stock Grant established in favour of the management

Abitare In S.p.A.

Registered office: Via degli Olivetani 10/12, 20123 Milan - Operating Headquarters: Viale Umbria 32, 20135 Milan Company listed on STAR segment of the MTA - Italian Equities Market (ticker ABT.MI) - VAT no. 09281610965 - Tel. +39 / 02 - 67 02 550

[e-mail] - [e-mail]

Share capital Euro 132,654.06 fully paid in - Share premium reserve: € 40,743,804

The EBT figure includes the financial income from the IPO of the subsidiary Homizy S.p.A., for Euro 5.9 mln.

The EBT is also increased, by Euro 1.9 mln, by income not deriving from operating activities, given by the capital gain from the re-measurement at fair value of the equity investment in Tecma Solutions S.p.A.

The CONSOLIDATED NET FINANCIAL POSITION is equal to Euro 84.4 mln (Euro 75.1 mln as at 30 September 2021), an increase of Euro 9.3 mln compared to 30/09/2021, versus total investments of Euro 32.6 mln, comprising Euro 15.8 mln for purchase of new areas and Euro

16.8 mln for work on orders in progress (progress of construction sites). Net of investments to purchase new areas, the consolidated NFP would have amounted to Euro 68.6 mln.

Consolidated Net Financial Position	31.12.2021	30.09.2021	Change
	amounts in Euro
A.	Cash and cash equivalents	14.425.024	13.778.285	646.739
B.	Means equivalent to cash and cash equivalents	-	-	-
C.	Other current financial assets	-	-	-
D.	Liquidity (A) + (B) + (C)	14.425.024	13.778.285	646.739
E	Current financial payables	-	-	-
F.	Current portion of non-current debt	19.494.017	16.710.663	2.783.354
G.	Current financial debt (E) + (F)	19.494.017	16.710.663	2.783.354
H.	Net current financial debt (G) - (D)	5.068.993	2.932.378	2.136.615
I.	Non-current financial payables	79.374.413	72.167.050	7.207.363
J.	Debt instruments	-	-	-
K.	Trade payables and other non-current payables	-	-	-
L.	Non-current financial debt (I) + (J) + (K)	79.374.413	72.167.050	7.207.363
M.	Total financial debt (H) + (L)	84.443.406	75.099.428	9.343.978

Development pipeline

As at the date of approval of this report, the AbitareIn Group is the owner or promissory buyer, net of the projects already finished and delivered, of 22 areas, corresponding to 300,000 square meters equivalent to over 3,300 standard-sizeapartments located in various semi-central areas of the City, in areas with high potential growth.

Of the more than 3,300 apartments in the pipeline, without considering the commercialization in progress, 618 apartments have already been sold (on a preliminary basis), for a value of € 254 mln, with contractual advances (guaranteed by an insurance surety policy) for € 79 mln.

Abitare In S.p.A.

Registered office: Via degli Olivetani 10/12, 20123 Milan - Operating Headquarters: Viale Umbria 32, 20135 Milan Company listed on STAR segment of the MTA - Italian Equities Market (ticker ABT.MI) - VAT no. 09281610965 - Tel. +39 / 02 - 67 02 550

[e-mail] - [e-mail]

Share capital Euro 132,654.06 fully paid in - Share premium reserve: € 40,743,804

The Group has delivered 381 apartments to date, divided into the three projects Abitare In Poste, Abitare In Maggiolina and Olimpia Garden, for a total value of € 121 mln, while 483 apartments are currently under construction.

The residential property market in Milan

In 2021, the housing market fully closed the 2020 gap, resuming that upward trend that had begun before the pandemic. In the third quarter of 2021, Milan recorded 6,125 conveyancing transactions, surpassing by far not only the volumes of the third quarter of 2020 (+23.4%), but also the figure for the same period in 2019 (+4.3%)4.

Last year also saw a generalised increase in prices (+4.1%)5,with new builds reaching an average sales price of Euro 5,798/m2 6, due to the development of an increasingly selective demand - which prefers the quality and performance that only new buildings can guarantee - combined with a structural supply shortage.

Forecasts for the near future also remain extremely positive: in Milan house prices will rise by another 4.2% by the end of 20227 (+6.5% for new builds8), alongside an increase in volumes, which are expected to reach 27,700 transactions in 20229.

Subsequent events

In the current period, AbitareIn will continue to work both on ongoing (and new) development sites and on obtaining the required authorisations, whilst also focussing constantly on scouting new areas to further consolidate its position of leadership in Milan.

In this regard, due to the direct and indirect effects of the pandemic emergency, the deliveries of the 420 apartments (for a total amount of € 180 mln) for the Milan City Village, Palazzo Naviglio and Trilogy Towers projects, originally planned for 2022, have been rescheduled for I half 2023 (Milano City Village e Palazzo Naviglio e for II half 2023 (Trilogy Towers).

The management also intends to adopt a sales strategy for new operations that involves the forward movement of certain commercialisations and the introduction of the so called "micro-

• OMI - Residential property market, statistics for the third quarter of 2021
  5 Nomisma Real Estate Market Observatory
  6 Observations of the Property Commission of the Chamber of Commerce of Milan, Monza Brianza, Lodi 7 Immobiliare.it
  8 Idealista.it
  9 Real Estate Scenarios - 2021 report on the real estate market of the Metropolitan City of Milan | A new Milan

Abitare In S.p.A.

Registered office: Via degli Olivetani 10/12, 20123 Milan - Operating Headquarters: Viale Umbria 32, 20135 Milan Company listed on STAR segment of the MTA - Italian Equities Market (ticker ABT.MI) - VAT no. 09281610965 - Tel. +39 / 02 - 67 02 550

[e-mail] - [e-mail]

Share capital Euro 132,654.06 fully paid in - Share premium reserve: € 40,743,804