Franchi Umberto Marmi S p A : FUM - Half-yearly financial report as of June, 30 2022

HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

INDEX

COMPANY INFORMATION.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Composition of Corporate Boards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

INTERIM REPORT ON OPERATIONS ON THE FINANCIAL STATEMENTS AS OF 30 JUNE 2022.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

General information.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Half-yearlyreport.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Non-IFRSmeasures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Environmental Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Information relating to personnel relations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Secondary offices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Main risks and uncertainties to which the Company is exposed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Risk management and type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Financial risks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk related to the current global economic and financial situation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Operational Risks.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks associated with relations with suppliers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks related to the degree of concentration of customer relationships.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks associated with dependence on senior management and qualified personnel.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks related to trends in the construction sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risks associated with the reference regulatory framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risks associated with the failure to extend authorisations and/or concessions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risks associated with applicable tax legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Risks related to compliance with environmental legislation and in the field of occupational health and safety.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Research and development activities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Relations with subsidiaries, associates, parent companies and companies subject to the control of the latter.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Number and nominal value of treasury shares or stakes of parent companies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Number and nominal value of treasury shares or stakes in parent companies purchased or sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

Privacy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

HALF-YEARLYFINANCIAL REPORT JUNE 30, 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Statement of financial position

25

Income statement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Statement of other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Statement of changes in shareholders' equity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

EXPLANATORY NOTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Content and form of the Condensed half-yearly financial statements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Declaration of compliance and basis of preparation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Purchase Price Allocation CIOT New York Inc... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Estimates and assumptions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 IFRS Accounting Standards, amendments and interpretations adopted from January 1, 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IFRS accounting standards, amendments and interpretations approved by the European Union, not yet compulsorily applicable and not adopted in advance by the Company at June 30, 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IFRS accounting standards, amendments and interpretations not yet approved by the European Union.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Key Events in the First Half of 2022.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Notes on the Statement of financial position	36
Assets	36
1 - Intangible assets	36
2 - Property, plant and equipment	38
3 - Right of use	39
4	- Investments	39
5 - Other non-current assets	41
6	- Deferred tax assets	42
7 - Inventory	43
8	- Trade receivables	43
9	- Current financial assets	44
10 - Tax receivables.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
11 - Other current assets	45
12 -Cash and cash equivalents.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Liabilities and shareholders' equity	46
13 - Shareholders' equity	46
14 - Current and non-current portion of borrowings	47
15 - Current and non-current leases liabilities	48

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

16 - Current and non-current financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 17 - Defined benefit plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 18 - Deferred tax liabilities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 19 -Trade payables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 20 - Other current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Notes to the Income Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 21 - Revenues.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 22 - Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 23 - Purchase of raw materials, consumables, goods and changes in inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 24 - Costs for services.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 25 - Personnel costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 26 - Depreciation and amortization.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 27 - Financial income and expenses.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 28 - Income taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 29 - Basic earnings and diluted earnings per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 30 - Commitments, guarantees and contingent liabilities not recognised in the balance sheet.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 31 - Information relating to intercompany transactions and those with related parties .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 32 - Costs for Directors, Board of Statutory Auditors and Independent Auditors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 33 - Significant events occurring after the end of the period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Categories of financial assets and liabilities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Credit risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Liquidity risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Market risk.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Exchange rate risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Interest rate risk.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

REPORT OF THE INDEPENDENT AUDITOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

FRANCHI UMBERTO MARMI S.P.A.

COMPANY INFORMATION

TAX CODE 10283160967 - VAT NO. 10283160967

Head Office Via del Bravo 14- 54033 Carrara (MS)

R.E.A NO. MS - 139347

MASSA CARRARA Companies Register No. 10283160967

Fully paid up share capital € 6.923.625,79

www.fum.it/en/

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

Composition of Corporate Boards

Board of Directors

Alberto Franchi (Chairman)

Bernarda Franchi (Deputy Chairman)

Paolo Orlando Daviddi (Director)

Marco Galateri di Genola e Suniglia (Director)

Gianluca Cedro (Director)

Gualtiero Vanelli (Director)

Andrea Franchi (Director)

Davide Giovanetti (Director)

Maurizio Saravini (Director)

Maurizia Olga Leto di Priolo (Independent Director)

Roberto Lettieri (Independent Director)

Board of Statutory Auditors

Andrea Marche (Chairman of the Board of Statutory Auditors)

Alberto Dell'Amico (Standing Statutory Auditor)

Filippo Caleo (Standing Statutory Auditor)

Independent Auditor

Deloitte & Touche S.p.A.

Euronext Growth Advisor

Intesa Sanpaolo S.p.A.

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

INTERIM REPORT ON OPERATIONS ON THE FINANCIAL STATEMENTS AS OF 30 JUNE 2022

General information

The Company is incorporated and domiciled in Carrara and governed by the laws of Italy. The Company has its registered office in Carrara (MS) - Via del Bravo 14.

The company, founded in 1971, is based in Carrara, country of origin of white marble, and has been operating in the stone industry for 50 years. It is active in the processing and marketing of blocks and slabs of Carrara marble, natural stone expression of "Made in Italy" and luxury, thanks to its special features and unique characteristics nationally and internationally.

Historically, the company was focused only on the marketing and processing of marble blocks and slabs mainly in the local area. Later on, it managed to pursue a policy of growth by expanding its activity on national and international markets, thanks to a constant professional commitment over the years, thus becoming one of the most important sector operators.

The company's products include marble blocks and slabs, different in colour and structure. The Company benefits from constant sources of supply, being able to rely on supply relationships consolidated over time with companies active in the extraction sector and thus being able to access the raw material extracted from quarries located in the Apuan-Versilian district. These relationships are also strengthened by the direct holding in some owning companies and/or quarry sites dealer and in mining companies in which stake is held directly or indirectly by controlling shareholders of the Company itself. The Company obtains its supplies from the largest and most productive quarries in the Apuan stone district, from which different kind of materials are extracted, considered to be among the most valuable in the area.

The diversification of supply sources allows the company to have access to the whole range of materials, thus permitting a careful selection of materials and the supply of a considerable quantity of constant quality material. The Company stands out for the care and the particular attention paid in the selection of materials by operating a constant control on the product quality through a rigorous monitoring every step of the working process, from the supply of raw materials to the marketing of blocks and slabs. As a matter of fact, the Company mainly works with valuable materials, as it uses Carrara marble.

The management believes that the high professional skills of the Company's workforce guarantees an excellent level in quality, also enhancing a rapid response to the customers' needs.

The activity of the Company is mainly held in a 60,000 square meters headquarters, where five modern sheds used as materials showrooms are located, and a building in which administrative offices are placed. In the historic headquarters of the Company, located in Via Canalie 10 in Carrara, the sawing of marble blocks mainly takes place.

Around the Company's headquarters three different buildings and a pavilion have been created. The formers are dedicated to the display of stone materials, the latter was built as a meeting room and a showroom for marble items, used both as exhibition space for pieces of furniture and design items, and as think tank for designers and open space for events.

In recent years, the Company has pursued a geographic diversification strategy by increasing its commercial position on international markets. In particular, the Company markets its products in various countries including, among others, China, the United States, Qatar, Turkey, the United Arab Emirates and Vietnam.

The Company also extended its commercial operations in Australia by acquiring 49% of the company Franchi Umberto Marmi Australia PTY Ltd in November 2019, in the Italian market by acquiring 50% of the shares of the company Ingegner Giulio Faggioni Soc. Consortile in January 2021 and 51% of the shares of the company Recovery Stone S.r.l. in December 2021, and in the US market by acquiring 33% of the shares of the company CIOT New York Inc. in December 2021.

The Company's customers are mainly major resellers (dealers) operating in the main national and international markets, including Daltile (United States), Antolini (Italy), Marmoles Arca (Mexico), CIOT (Canada).

Deloitte & Touche S.p.A. is the Independent Auditor.

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

The analysis of the Company's situation, its performance and its results are examined in the next paragraphs, dedicated to the market context, the products offered, the investments made and the main economic and financial indicators. The condensed half-yearly financial statements as of and for the six months ended June 30, 2022 (hereinafter the "Condensed half-yearly financial statements") were prepared in accordance with IAS 34 - Interim Financial Reporting ("IAS 34").

Half-yearly report

The Company's development path, slowed down due to the pandemic in 2020, restarted at full speed in 2021 and continues in 2022 despite the outbreak of the conflict between Russia and Ukraine which, at the moment, is not expected to have any impact, even indirect, on the operations of the Company.

Signals coming from foreign markets are reassuring and bode well for the coming months. It is important to underline that the company Ingegner Giulio Faggioni Carrara S.r.l., of which FUM holds 50%, contributed significantly to these results, confirming the validity of the strategy undertaken for positioning in the luxury segment. Further confirmation of the growth trend is expected for the next few months, thanks to important orders that have already partially materialized.

The Condensed half-yearly financial statements reported a profit for the period of Euro 9,278 thousand, after income taxes for Euro 4,866 thousand. The first half of 2021 reported a profit for the period of Euro 6,788 thousand. Compared to the previous period, the revenues increased by Euro 8,136 thousand (+24.4%). The growth recorded is essentially attributable to the recovery of almost all the geographical area in which the Company operates both in the blocks and slabs product line with a significant increase in revenues in Italy (+ 31.5%), in the Middle East1 (+273.4 %) and in the United States (+ 34.7%).

EBITDA at June 30, 2022 was equal to Euro 16,529 thousand, with an increase of Euro 5,413 thousand compared to the first half year of 2021 (Euro 11,116 thousand). This trend is mainly attributable to the greater business volume achieved in the period and the gradual improvement in the mix of products sold which allowed an increase in margins. It should be noted that in the first half of 2022 the Company incurred costs of Euro 127 thousand relating to the proposed translisting operation on Euronext Milan, whose timing is still being assessed, whereas in the first half of 2021 it had incurred consultancy costs for Euro 627 thousand relating to the acquisition of the shares of the company Ingegner Giulio Faggioni Carrara S.c.a r.l..

Non-IFRS measures

This Report on Operations contains financial measures that are not recognized by IFRS. These measures are termed "non-IFRS measures" because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. Management uses such measures to assess the financial performance and liquidity of the businesses. Management believes that these and similar measures are used widely by certain investors, securities analysts and other interested parties as supplemental measures.

For a correct interpretation of these Non-IFRS measures, please note the following:

• the Non-IFRS measures are constructed from historical data and are not indicative of the future performance of the Company itself. Specifically, they come from the Condensed half-yearly financial statements as of and for the six months ended June 30, 2022 and are presented in comparison with the data from the Condensed half-yearly financial statements as of and for the six months ended June 30, 2021 and/or the annual financial statements for the year ended December 31, 2021.
• Non-IFRSmeasures are not measures whose determination is regulated by international accounting standards (IFRS) and, although derived from the Condensed half-yearly financial statements, they are not audited or reviewed.
• the Non-IFRS measures should not be considered as a substitute for the indicators required by the reference accounting standards (IFRS).
• the definitions of the Non-IFRS measures used by the Company, as they do not derive from the reference accounting standards, may not be uniform with those adopted by other groups and therefore comparable with them.
• the Non-IFRS measures used by the Company are processed with continuity and uniformity of definition.

1. Saudi Arabia, United Arab Emirates, Jordan, Kuwait, Oman and Qatar

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HALF-YEARLY FINANCIAL REPORT JUNE 30, 2022

Amounts in Euro thousands		Forthe six months period ended
June 30, 2022		June 30, 2021
EBITDA		16.529		11.116
EBITDA Margin		39,5%		33,2%
Adjusted EBITDA		16.845		12.854
Adjusted EBITDA Margin		40,3%		38,4%

Amounts in Euro thousands			As of
June 30, 2022		December31, 2021
Net Working Capital		52.244	34.697
Net Financial Indebtedness		37.201	22.460

Below are the reconciliation tables of the above indicators with the balance sheet items.

EBITDA - This indicator is used by the Company as a financial measure and represents a useful unit of measurement for assessing the underlying operating performance. EBITDA is calculated as profit for the period before income taxes, financial income and expenses, foreign exchange gains or losses, and depreciation and amortization.

The EBITDA Margin is a financial	measure that indicates the operating profitability of the Company and is calculated as EBITDA and divided by total
revenues and other income.
(Amounts in Euro thousand)		Forthe six months	Forthe six months	Change		% Change
	ended June 30, 2022	ended June 30, 20221
Profit for the period		9.278	6.788		2.490	36,7%
Income taxes		4.866	2.947		1.919	65,1%
Financial income		(723)	(24)		(699)	>100,0%
Financial expenses		216	724		(508)	(70,2%)
Foreign exchange (gains)/losses		(163)	(29)		(134)	>100,0%
Depreciation and amortisation		3.055	710		2.345	>100,0%
EBITDA		16.529	11.116		5.413	48,7%
EBITDA Margin		39,5%	33,2%		6,3%
(EBITDA/Total revenues and other income)

For the six months ended June 30, 2022, EBITDA was equal to Euro 16,529 thousand compared to Euro 11,116 thousand in the same period of the previous year. The increase is essentially attributable to the greater business volume achieved in the period and the gradual improvement in the mix of products sold which allowed an increase in margins, as well as represented by the improvement of 6 percentage points in the EBITDA Margin.

Adjusted EBITDA - is a unit of measurement for assessing the Company's operating performance. Adjusted EBITDA is calculated as the sum of profit for the period, foreign exchange gains or losses, financial income and expenses, depreciation and amortization and the effects of certain events and transactions that Management considered unrelated to the Company's operating performance.

With reference to the Adjusted EBITDA, the Company believes that the adjustment (which defines the Adjusted EBITDA) was made in order to represent the operating performance of the Company, net of the effects of certain events and transactions. This adjustment relating to certain income and expenses was necessary in order to ensure a better comparability of the historical data related to the periods under consideration, as they include

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