Falck Renewables S p A : First-half financial report at 30 June 2021

INTERIM FINANCIAL REPORT AT 30 JUNE

The English version is a courtesy translation. The original Italian document is the authoritative version and in case of any discrepancies between the Italian and the English version, the Italian version shall always prevail.

Interim Financial Report at 30 June 2021

Contents
1. Company officers ...............................................................................................................................................	4
2. Group presentation .............................................................................................................................................	5
2.1 Group structure.............................................................................................................................................	5
3. Consolidated financial highlights .......................................................................................................................	9
4. Interim Directors' report...................................................................................................................................	10
4.1. Falck Renewables Group operating and financial review.........................................................................	11
4.1.1 Falck Renewables Group profile ........................................................................................................	11
4.1.2 Regulatory framework ........................................................................................................................	12
4.1.3 Performance........................................................................................................................................	28
4.1.4 Non-financial performance indicators ................................................................................................	37
4.1.5 Share price performance .....................................................................................................................	37
4.1.6 Performance of the business sectors ...................................................................................................	38
4.1.7 Review of business for the first half of 2021......................................................................................	47
4.1.8 Environment, health, safety and sustainability ...................................................................................	49
4.1.9 Research and development activities ..................................................................................................	52
4.1.10 Risks and uncertainties .....................................................................................................................	52
4.1.11 Significant events after the balance sheet date..................................................................................	69
4.1.12 Evolution of the business activities during the year in progress.......................................................	69
4.2 Operating and financial review of Falck Renewables SpA........................................................................	70
4.2.1 Financial highlights.............................................................................................................................	70
4.2.2 Performance and review of business...................................................................................................	70
4.2.3 Employees...........................................................................................................................................	71
4.2.4 Capital expenditure .............................................................................................................................	71
4.2.5 Corporate governance .........................................................................................................................	71
4.2.6 Directors, statutory auditors, key managers and their interests ..........................................................	72
4.2.7 Related party transactions...................................................................................................................	72
4.2.8 Direction and coordination activities ..................................................................................................	72
4.2.9 Holdings of treasury shares or parent company shares.......................................................................	73
4.2.10 Purchases and sales of treasury shares or parent company shares during the course of the financial
year ..............................................................................................................................................................	73
4.2.11 Stock option and stock grant plans ...................................................................................................	73
4.2.12 Corporate governance .......................................................................................................................	74
4.2.13 Participation in the opt-out regime ...................................................................................................	74
4.2.14 Legislative decree 231/2001 .............................................................................................................	74
5. Condensed interim consolidated financial statements at 30 June 2021............................................................	75
5.1 Consolidated balance sheet ........................................................................................................................	76
5.3 Consolidated statement of comprehensive income ....................................................................................	78
5.4 Consolidated statement of cash flows ........................................................................................................	79

	5.5	Consolidated statement of changes in equity .............................................................................................	80
	5.6	Explanatory and supplementary notes to the financial statements.............................................................	81
	5.6.1 Basis of preparation of the consolidated financial statements ............................................................	81
	5.6.2 Consolidation perimeter......................................................................................................................	82
	5.6.3 Principles of consolidation..................................................................................................................	85
	5.6.4 Segment information...........................................................................................................................	86
	5.6.5 Financial Statement contents and movements ....................................................................................	88
	5.6.6 Income statement content and movements .......................................................................................	114
	5.7	Additional information on financial instruments................................................................................	126
6.	Supplementary information to the consolidated financial statements ............................................................	137
	6.1	List of equity investments in subsidiaries, associates and Joint Ventures..........................................	138
7.	Certification of the condensed interim reports as per article 81-ter of CONSOB Regulation no. 11971 of 14
May 1999, as amended .......................................................................................................................................	143
8.	Independent Auditors' Report ........................................................................................................................	145