Franchetti S p A : FY2023 Results Approved

FY2023 RESULTS APPROVED

Strong growth in value of production (+44.1% YoY) and margins, with EBITDA up 37.8%.

Focus on digital infrastructure and "cloud-ready" software.

PROPOSED DIVIDEND DISTRIBUTION OF €0.05 PER SHARE

Consolidated financial highlights at December 31, 2023:

• ● Value of production: Euro 7.0 million, +44.1% (2022: Euro 4.9 million)

• ● EBITDA: Euro 2.5 million, +37.8% (2022: Euro 1.8 million)

• ● Net profit: Euro 1.2 million, up slightly (3.6%) on 2022

• ● Net financial position: Euro 0,4 million (debt) compared to Euro 0,2

  million (cash positive) in 2022

• ● Order backlog (hard backlog) at December 31, 2023 of Euro 34.2 million with visibility to 2027 (+4.9% compared to Euro 32.6 million at

  30/11/2023).

  Orders with a signed contract underlying them are included in the backlog.

Arzignano (VI), March 28, 2024 - The Board of Directors of Franchetti S.p.A. ("Franchetti" or the "Company" or the "Group," Ticker BIT: FCH), a company listed on the Euronext Growth Milan segment of the Italian Stock Exchange and parent of the multinational software development and engineering design Group of the same name, a pioneer in planning, diagnosis and treatment for the safety and predictive planning of maintenance for network infrastructure, particularly bridges and viaducts, met today. The meeting, chaired by Paolo Franchetti, approved the parent company's draft Financial Statements and reviewed the Consolidated Financial Statements at December 31, 2023.

Paolo Franchetti, Chairperson and CEO of Franchetti S.p.A:

"Closing a fiscal year delivering growth never fails to provide great satisfaction. The numbers that the Board reviewed today not only reflect our growth, but are also testament to our ability to develop a solid and resilient business. Heartened by this, we look to the future aware of the need - felt especially keenly in Italy, but also inEurope more widely and the countries in which we operate - to modernize infrastructure. This is a requirement that is becoming a strategic priority for an increasing number of governments. Ensuring that bridges, viaducts and road networks are sustainable requires an approach that combines engineering skills with digital technologies. Our software offers unparalleled scalability, allowing thousands of facilities to be addressed simultaneously, facilities whose data we have collected over more than 25 years.

To support this aspect of our uniqueness, we will continue to invest in digital infrastructure and R&D, especially to make sure our software can be adapted to "cloud-ready" architectures. I am also proud to have been able to launch the Franchetti Academy in early 2024. This seeks to position itself an international center of specialisation and excellence for professionals looking to pursue a career in predictive maintenance."

Consolidated Financial Highlights at December 31, 2023

Income Statement

Value of production totaled Euro 7.0 million, up 44.1% from Euro 4.9 million to December 31, 2022.

Breaking down the value of production:

The value of production in Italy stands at Euro 5,591,821 (79.6% of the total), compared to Euro 3,035,000 in the same period in 2022, while the figure for Brazil is Euro 1,428,302 (20.4% of the total), compared to Euro 1,837,000 in the same period in 2022.

These results are mainly attributable to the steady and gradual increase in the engineering performance demands of the target sector. In 2023, the Italian, European, and global markets for maintenance of major road infrastructure worked on increasing levels of business, and the Company's specific expertise allowed it to benefit from the leadership position achieved by the Group. The domestic market generated considerable leverage in the area of large infrastructure maintenance. As this effect is a result of aging infrastructure, and largely independent of National Recovery and Resilience Plan funding, it is likely to continue for an extended period.

The Company's commercial efforts have also continued as it seeks to expand both the number of contracts and its customer base. In this ever-changing market which, on the one hand, is witnessing an unstoppable process of infrastructure digitalization (IoT), and on the other hand the development of technologies to prevent risks related to their ageing, Franchetti is investing to maintain the elevated levels of innovation in existing software and to develop new solutions, assisting its clients in managing their assets, including through strategic alliances with leading players in the sector.

After expensing production costs of Euro 4.5 million - an item which is mainly affected by increased service costs relating to external suppliers and expenses for personnel (74 staff at December 31, 2024), EBITDA stood at Euro 2.5 million, a 37.8% increase on Euro 1.8 million in 2022. After depreciation and amortization of approx. Euro 0.5 million, Operating Profit (EBIT) stands at Euro 2.0 million, up 24.8% on Euro 1.6 million in 2022. Pre-tax profit was Euro 1.9 million, up 21.4% from Euro 1.5 million in 2022.

2023

2022

REVENUES

6,152,164 4,742,811

VALUE OF PRODUCTION EBITDA

7,020,123 4,872,923

2,535,483 1,839,393

EBITDA Margin EBIT

EBIT Margin PROFIT

41% 2,028,895 33% 1,243,204

39% 1,625,322 34% 1,200,337

Balance Sheet

Net Working Capital amounted to Euro 4.7 million, compared to Euro 2.7 million as of December 31, 2022.The increase is due to an increase in trade receivables (rising from Euro 3.7 million in 2022 to Euro 5.8 million in 2023) and trade payables, which increased from Euro 0.8 million to Euro 1.3 million.

As regards inventories (Euro 0.9 million in 2023 compared to Euro 0.1 million in 2022), we note that in the year the parent company Franchetti S.p.A. decided to change the methodology used to value inventories. These are no longer valued using the cost method but at estimated realizable value. The criteria adopted in thevaluation of individual items led to a recognition of values that was not significantly different from the current costs of assets recognizable at the end of the fiscal year (Article 2426, item 10 of the Civil Code).

Net Financial Debt stood at Euro 0,4 million (debt) compared to Euro 0,2 million (cash positive) at December 31, 2022. Specifically, current financial payables rose to 2.8 million, up from Euro 1.7 million at December 31, 2022, while non-current financial payables decreased to Euro 0,2 million (Euro 0,4 at December 31, 2022).

Shareholders' Equity totaled Euro 6.6 million, up from Euro 4.6 million at December 31, 2022. The figure incorporates the payment of dividends in May 2023, for a total of Euro 68,330.

For further details on the changes in the period, see the Directors' Report on the Franchetti Group S.p.A. consolidated financial statements at December 31, 2023.

Significant events in the period

• ● On May 2 (later corrected in the press release of May 3), executing the resolution of the Extraordinary Shareholders' Meeting of September 5, 2022, and in accordance with the "2022-2025 Franchetti Warrants" Regulations, Franchetti set May 22, 2023 as the Coupon Date (coupon No. 2) for the second tranche of the "2022-2025 Franchetti Warrants". This entails the allocation to all shareholders of a maximum of 958,250 Warrants, in the ratio of 1 Warrant for every 4 ordinary shares.

• ● On May 10, Franchetti announced that it had completed the acquisition of 67% of the share capital of Gallo Technics S.r.l. Gallo Technics S.r.l. is a newly established company based in Padua. It brings together the historical client list, experience and engineering tradition of engineers Cesare and Sebastiano Gallo's more than 50 years in the field and those of their father Domenico before them. Before the establishment of Gallo Technics, the brothers both practiced as individual professionals.

• ● On May 24, the allocated process for the second tranche of the "2022-2025 Franchetti Warrants," with coupon date of May 22, 2023, was completed, with 958,250 Warrants being allocated free of charge to all shareholders in the ratio of 1 warrant for every 4 ordinary shares held. These Warrants are traded on Euronext Growth Milan, identified by ISIN Code (IT0005508558) and fully

fungible with the "2022-2025 Franchetti Warrants".

• ● On September 6, Franchetti announced the appointment of Gianluca Del Fabbro as General Manager of the Group. Mr. Del Fabbro assumed the position effective September 18, 2023.

• ● On September 29, Franchetti S.p.A. informed the relevant offices of Consob that the KID for the "2022-2025 Franchetti Warrants" (ISIN code IT0005508558) had been updated, as required by current regulations.

• ● On the same date, the Company announced that holders of the "2022-2025 Franchetti Warrants" (ISIN code IT0005508558), would be able to request their exercise from October 2, 2023 and until October 16, 2023 inclusive (the "First Exercise Period").

• ● On October 16, the Company announced that, on the same date, the first exercise period of the "2022-2025 Franchetti Warrants" (ISIN IT0005508558), covering the period between October 2 and October 16, 2023, inclusive (the "First Exercise Period"), had concluded. During this period, 157,250 Warrants were exercised and consequently 157,250 ordinary Franchetti shares were subscribed to, without indication of par value, at a price of Euro 3.30 per share, in the ratio of 1 (one) Conversion Share for every 1 (one) Warrant held, with regular dividend entitlement and the same characteristics as the Franchetti Ordinary Shares traded on the Euronext Growth Milan on the date of issue of the Conversion Shares, for a total value of Euro 518,925.00. Franchetti Holding S.r.l., the majority shareholder and headed by Mr. Franchetti, the Company's Chairperson and Chief Executive Officer, proceeded to exercise 152,000 Warrants, for a total value of Euro 501,600.

• ● On November 6 (later corrected in the communication of November 7), the Company filed with the Vicenza Companies Register the certificate of the change in capital following the allocation of 157,250 newly issued Franchetti S.p.A. Ordinary Shares, resulting from the exercise of 157,250 Warrants during the First Exercise Period of the "2022-2025 Franchetti Warrants" (ISIN Code: IT0005508558) between October 2, 2023 and October 16, 2023 inclusive.

Significant events after period-end

There have been no significant events since the period-end.

Group order portfolio and outlook

The Board of Directors today verified and updated the value of the order book withvisibility to 2027, which stands at Euro 34.2 million, prepared on the basis of Group management data. Based on the available information, order book and organizational structure, Group performance in the current year is expected to be in line with management expectations.

During the first quarter of 2024 - the developed production value is in line with expectations.

In terms of the M&A plan, in line with the information previously provided, in 2024 the Franchetti Group intends to continue its acquisition plan to integrate new technologies, specialized skills and excellence in markets that are already proprietary or adjacent to the current ones, with substantial growth objectives. Against a global geopolitical backdrop featuring a number of armed conflicts, Franchetti S.p.A.'s management and Independent Directors have not currently detected any short-term risks as the Company's business is not exposed in crisis areas.

Key Franchetti S.p.A. Results at December 31, 2023

Revenues from sales and services totaled Euro 5.0 million, up 46.3% from Euro 3.5 million in the previous year.

Value of production stands at Euro 5.6 million, up 62.6% from Euro 3.5 million to December 31, 2022.

EBITDA is Euro 2.0 million, up from Euro 1.1 million in 2022, while the EBITDA margin is 41%, an increase from 31% in 2022. After depreciation and amortization of approx. Euro 0.4 million, Operating Income (EBIT) stands at Euro 1.6 million, up 82.7% on Euro 0.9 million in 2022. Net profit is Euro 1.0 million, up from Euro 0.6 million in 2022.

Net Financial Debt was Euro 0.2 million (debt), compared to Euro -0.4 million (cash positive) at December 31, 2022. Specifically, financial payables totaled Euro 2.7 million (Euro 1.6 million at December 31, 2022).

Shareholders' Equity totaled Euro 5.5 million, up from Euro 4.0 million at December 31, 2022.

Proposal for the allocation of the result

The Board of Directors approved the proposal to the Shareholders' Meeting for the following allocation of the net profit of Euro 1,037,616:

• - dividend equal to Euro 0.05 per share, for a total value of Euro 349,512.50 (Record Date: 05.27.2024, Extachment Date: 05.28.2024, Payment Date: 05.29.2024);

• - Euro 1,573 million to the legal reserve;

• - Euro 686.530,50 a nuovo new.

2024 corporate events calendar update

The Company communicates the following addition to the calendar of corporate events for the 2024 financial year published on 16 January 2024:

4 April 2024 - Participation in the Investor Access Event Paris conference

Shareholders' Meeting Call

The Board of Directors has resolved to convene the Ordinary Shareholders' Meeting for 24 April 2024 on first call and, if necessary, on 29 April 2024 on second call, for the approval of the financial statements as at 31 December 2023 and the allocation of the profit of the financial year, as well as for the assignment of the statutory auditing of the accounts for the three-year period 2024-2026 and for the determination of the fee pursuant to Legislative Decree 39/2010.

The call notice and the relative documentation required by applicable regulations, including the 2023 Financial Statements, the Directors' Report, the Directors' Report on matters on the Agenda of the Shareholders' Meeting, the Board of Statutory Auditors' Report and the Independent Auditors' Report will be made available to the public, according to the provisions of the applicable regulations, at the Company's registered office and on its website athttps://www.franchetti.tech/governance#Assemblee and on the websitewww.borsaitaliana.it,in the "Shares/Documents" section.

Filing of documentation

The documentation concerning the Financial Statements at December 31, 2023, required by the applicable regulation, shall be made available to the public at the registered office of the Issuer, and also published on the company websitewww.franchetti.tech,in the "Investor Relations/ Financial Statements and Reports" section, in accordance with law, and on the websitewww.borsaitaliana.it,in the Shares/Documents section.

Franchetti S.p.A.

Franchetti S.p.A. heads the Franchetti Group, a pioneer in the management, diagnostics and predictive maintenance of infrastructure (bridges and viaducts in particular). Founded in 2013 in Arzignano (VI), with subsidiaries in Brazil and Canada and operations in the US and India, Franchetti is an innovative SME that has worked on over 40,000 equivalent motorway and railway bridges worldwide. The Group boasts a technical and scientific track record that places it among the industry's leading international experts. Operations are broken into two main business lines: diagnosis and planning for infrastructure maintenance, with inspections and assessments, intervention planning and construction management and ICT services for the predictive programming of infrastructure maintenance. Franchetti has in fact developed two proprietary software programs that leverage the potential of artificial intelligence and predictive data analysis: Argan® can estimate an infrastructure's life cycle and automatically assess safety levels over time for a range of maintenance scenarios and contexts, Pathwork© ensures the optimized management of road and highway works on infrastructure and to support sustainable mobility, and SIDECHECK©, which can intelligently compare data collected regarding inspections, inspectors, schedules, and work estimates to ensure that the evaluation process is as objective and comprehensive as possible. With a workforce of 70 professionals, more than 90% of whom are engineering graduates, the Group achieved a Value of Production of Euro 7.0 million in 2023 (+42.9% on 2022) and EBITDA of Euro 2.5 million (+38.9% on 2022).

Contacts:

Issuer	Investor & Media Relations Advisor
Franchetti S.p.A.	TWIN
Tel. [phone]
[e-mail]	[e-mail]
Mara Di Giorgio || [phone]
Federico Bagatella|| [phone]
Chiara Bortolato || [phone]

Euronext Growth Advisor & Specialist: Integrae Sim S.p.A.||

+ 39 02 96 84 68 64

Consolidated Income Statement

(€)	31/12/2023	31/12/2022
Revenues	6,152,164	4,742,811
Change in inventories	768,236	(24,914)
Increases for internal work	18,911	-
Other operating revenues	80,812	155,026
VALUE OF PRODUCTION	7,020,123	4,872,923
Costs for raw materials and consumables	(141,989)	(92,533)
Costs for services	(2,924,711)	(2,188,893)
Costs for the use of third party assets	(281,635)	(189,966)
Personal	(955,517)	(432,011)
Various management costs	(180,788)	(130,127)
EBITDA	2,535,483	1,839,393
EBITDA Margin	41%	39%
Amortization of intangible assets	(489,936)	(195,271)
Depreciation of tangible fixed assets	(16,652)	(18,800)
EBIT	2,028,895	1,625,322
EBIT Margin	33%	34%
Financial income	23,295	14,778
Financial charges	(153,731)	(102,453)
Gains/(Losses) on foreign exchange	(27,496)	4,105
RESULT BEFORE TAXES	1,870,963	1,541,752
Income taxes	(627,759)	(341,415)
PROFIT	1,243,204	1,200,337

Consolidated Balance Sheet

(€)	31/12/2023	31/12/2022
Inventories	923,540	154,488
Commercial credits	5,768,623	3,673,083
Commercial debts	(1,341,899)	(846,272)
Commercial Working Capital	5,350,264	2,981,299
Other activities	1,192,709	1,081,421
Other Liabilities	(1,871,970)	(1,399,913)
Net Working Capital	4,671,003	2,662,807
Intangible assets	2,262,510	1,580,631
Tangible fixed assets	70,485	89,486
Financial fixed assets	31,702	159,136
Gross Invested Capital	7,035,700	4,492,060
TFR	(64,599)	(41,218)
Funds	-	-
Net Invested Capital	6,971,101	4,450,842
Short-term debts to banks	2,787,893	1,675,020
Medium and long-term debts to banks	233,161	403,619
Financial debts	3,021,054	2,078,639
Liquid assets	(2,602,278)	(2,234,329)
Other financial assets	-	-
Net financial debt	418,776	(155,690)
Social Capital	358,408	347,039
Reserves	4,950,713	3,059,156
Operating result	1,243,204	1,200,337
Total PN	6,552,325	4,606,532
Total sources	6,971,101	4,450,842