Costamp S p A : INTERIM REPORT at 30/06/2021

Costamp Group S.p.A.

Via Giuseppe Verdi 6, 23844 Sirone (LC)

Share capital € 2.130.272,00 fully paid up

Tax code and registration number in the Lecco Register of Companies 01763310354

INTERIM REPORT at 30/06/2021

Dear Shareholders,

This Interim Management Report, prepared by the Board of Directors, includes the condensed interim consolidated financial statements at 30 June 2021, drafted in accordance with IAS 34, concerning interim financial reporting. The condensed interim consolidated financial statements at 30 June 2021 were drafted up in an "abbreviated" format and must therefore be read jointly with the consolidated financial statements of the Costamp Group for the year ended 31 December 2020, prepared in compliance with IFRS, without prejudice to the content of the section of the explanatory notes "accounting standards, amendments and interpretations applicable from 1 January 2021".

The condensed consolidated interim financial statements were drafted on the assumption of the Group's ability to do business as an operating entity. The Group believes that there are no economic, equity, financial and organizational indicators (as defined by paragraph 25 of the IAS 1 Principle) that give rise to uncertainties about the going concern.

This interim report must be read in conjunction with the accounting statements and related explanatory notes, integral parts of the condensed consolidated half-year financial statements.

Lastly, note that the alternative performance indicators used represent, on the one hand, a key to interpreting the results not provided for by the IAS/IFRS, and on the other hand, they should not be considered as a replacement of those outlined by the same principles.

Costamp Group S.p.A. closed the half-year period with a net profit of € 2,840,650.

To give an appropriate interpretation of the profit for the half year, it is necessary to refer to the external "Coronavirus" factor and the extraordinary transactions carried out in this situation:

Coronavirus

This situation at the relevant date (30 June 2021) of this report is still in the midst of its problem, the containment strategies appear different even if vaccines are being distributed, and therefore the only temporary solution is seen as the use of a limitation of the movement of people and this has prevented "physical" contacts with customers located in other European and non-European countries.

This aspect has its importance in the formulation of projects and smart working is not always able to adequately compensate for a lack of presence. The company has developed the contrast and protection plans that it had already set up regarding the health factor.

Extraordinary transaction Alunext S.r.l.

Alunext S.r.l. was established on 18 December 2020, through the contribution by Costamp Group S.p.A., of its Foundry Business Unit branch which includes multiple HPDC and LPDC technologies as well as the new Low Pressure Forging (LPF) technology.

On 29 January 2021, the industrial alliance dedicated to the production of aluminium alloy castings through Low Pressure Forging (LPF) technology was finalised with the company Streparava S.p.A., an

international player in the supply of components and systems for powertrain and chassis, through the acquisition of Streparava S.p.A. by Costamp Group S.p.A. of 51% of Alunext S.r.l.

This transaction allows Costamp and Streparava to operate jointly through Alunext and in synergy in the aluminium casting foundry sector, pooling Costamp's assets and technological capabilities with Streparava's technical, industrial and commercial know-how in automotive sector.

The joint initiative is part of the Costamp Group's growth and investment strategy, as a differential element to accelerate an increase in the Group's profitability and solidity.

The industrial alliance is based on the wish to provide the national and international market with a single reference point through the contribution of two highly specialised players in the automotive sector, able to integrate strong industrial expertise in the foundry field with in-depth knowledge techniques and a high capacity for commercial penetration. This combination will ensure a turnkey service and specific know-how at all levels of the automotive supply chain for the large pool of established and potential customers. Alunext, in particular, also intends to address the Premium Cars market, synergistically integrating the technical and technological skills of Costamp and Streparava.

Extraordinary transaction Costamp Real Estate S.p.A.

Costamp Real Estate S.p.A. was established on 16 June 2021 through the proportional partial demerger of Costamp Group S.p.A., in order to divide the operational activities carried out by the group headed by Costamp Group with respect to the real estate complex, bringing all the elements of its real estate assets, consisting of industrial buildings, and the related liabilities in favour of a newly established company.

As a result of the Demerger, the Costamp Group's book equity was reduced by the amount of 7,313,069 Euros, entirely from reserves, without any share capital reduction.

The transferred assets, to which the fixed plants, industrial buildings and prepaid taxes refer, were equal to 17,609,206 Euros net of accumulated depreciation, while the transferred liabilities, to which the financial debts linked to the real estate complex refer plus the Deferred taxes amounted to 10,296,137 Euros.

This transaction aims to obtain an efficiency of the logistics and related costs. Costamp Group will thus have greater flexibility in terms of use of production facilities, as it will be able to more easily evaluate how to structure production, freeing itself from the management of properties that may no longer be useful for its business.

Given the above, the result for the period indicates that the path followed is correct and that the profit of 2,840,650 Euros is to be considered more than satisfactory. A comparison of revenue for the first half of 2021 equal to 26.7 million is also highlighted. with the first half of 2020 equal to 24.9 million, which shows an increase of 7.3%.

As regards the Gross Operating Margin (EBITDA), it stood at 5.1 million Euros, with an EBITDA of 17.33% of revenue from sales and services, compared to 3.6 million Euros at 30 June 2020 at 14.65%.

The group has completed a new R&D project that will bear fruit starting in 2021.

The net financial position as at 30 June 2021 amounted to € -19.1 million while at 30 June 2020 it amounted to € -32.2 million, this improvement is mainly due to the extraordinary transactions the

company was engaged in during the first half of the year.

Note the liquidity of € 21,978 million at 30 June 2021 compared to € 10,717 million at 31 December 2020.

The condensed consolidated interim financial statements were drafted on the assumption of the Group's ability to do business as an operating entity. The Directors believe that, given shareholders' equity of € 19,992,333, given the cash and cash equivalents of € 21,978,010 and considering the large unused credit

lines available to date, as well as considering the further profitability recoveries expected and envisaged in the short/medium-term business plans, there are no economic, financial and organisational indicators (as defined by paragraph 25 of IAS 1 Principle) that give rise to uncertainties about business continuity.

The Explanatory Notes provide information relating to the illustration of the condensed consolidated interim financial statements at 30 June 2021; this report provides information regarding the Group's economic, equity and financial situation and information on operating performance.

COMPANY ORGANS

Board of Directors
Marco Corti	-	Chairman and Managing Director
Mario Pagani	-	Board Member
Aldo Alessandro Corti	-	Board Member
Carlo Corti	-	Board Member
Cesare Carbonchi	-	Board Member
Giacomo Maria Molteni	-	Board Member
Davide Corti	-	Board Member
In office until approval of the 2022 balance sheet
Board of Auditors
Paolo Antonio Comuzzi	-	Head Auditor
Lucilla Dodesini	-	Statutory Auditor
Piero Antonio Capitini	-	Statutory Auditor
Marzia Galli	-	Substitute Auditor
Cristiano Fracassi	-	Substitute Auditor
In office until approval of the 2022 balance sheet
External Auditors
Crowe AS Spa
In office until approval of the 2022 balance sheet

Nomad

Banca Intermobiliare di Investimenti e Gestioni Spa

THE ORGANISATIONAL STRUCTURE OF THE GROUP AT 30 JUNE 2021