Intek S p A : The BoD of Intek Group SpA has approved the draft financial stamements for the year 2020

Registered office: 20121 Milan (MI) - Foro Buonaparte 44

Share capital Euro 335,069,009.80, fully paid-up

Tax Code and Milan Companies Register no. 00931330583

www.itkgroup.it

PRESS RELEASE

THE BOARD OF DIRECTORS OF INTEK GROUP SPA HAS APPROVED THE DRAFT FINANCIAL STATEMENTS FOR THE YEAR 2020.

• • Profit for the year of Euro 6.5 million (loss of Euro 1.0 million in 2019).
  • Equity of Euro 507.2 million (Euro 500.8 million as at 31 December 2019).
  • Negative Net Financial Position of Euro 67.4 million (negative by Euro 49.2 million as at 31 December 2019).
  • Consolidated Financial Statements: profit of Euro 4.5 million and Equity of Euro 507.2 million (loss of Euro 1.9 million and equity of Euro 502.6 million in 2019).
• PERFORMANCE OF PRIMARY INVESTMENTS:
• • KME SE: revenues from sales amounting to Euro 1,882.4 million (-16.4% compared to 2019), revenues from sales net of raw materials equal to Euro 531.9 million (-11.3% compared to 2019) and EBITDA of Euro 75.1 million (-13.2% compared to 2019). Activities intended to increase the value of KME SE are under way, with the legal separation of the two Special and Copper businesses, making it possible to pursue individual enhancement paths and differentiated strategic solutions.
  • Culti Milano SpA continues to grow in its reference markets, particularly in Italy and Asia, including through a new acquisition. Pro-forma consolidated revenues of Euro
    15.3 million and EBITDA of Euro 3.6 million (+9.2% and +100%, respectively, compared to the pro-forma data from 2019).
• ORDINARY AND EXTRAORDINARY SHAREHOLDERS' MEETING CALLED FOR 7 AND 8 JUNE 2021 TO APPOINT THE NEW CORPORATE BODIES, APPROVE THE FINANCIAL STATEMENTS AND RENEW RESOLUTIONS FOR THE PUBLIC EXCHANGE OFFER ON INTEK GROUP SAVINGS SHARES.
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Milan, 26 April 2021 - The Board of Directors of Intek Group SpA, a diversified investment holding company, today approved the parent company's draft financial statements as at 31 December 2020, the consolidated financial statements and the Report on corporate governance and ownership structure prepared pursuant to article 123-bis of Italy's Consolidated Law on Finance (TUF, Testo Unico sulla Finanza).

The Annual Financial Report as at 31 December 2020, along with the Report on corporate governance and ownership structure, is expected to be made public, together with the reports of the Independent Auditors and the Board of Statutory Auditors, by 30 April 2021 and will be available at the registered office as well as on the website www.itkgroup.itand the authorised storage system "eMarket STORAGE" (www.emarketstorage.com).

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Most significant events occurred in 2020

The main events characterising the operations of Intek and its investees in 2020 and the initial months of 2021 are described below.

(i) Increasing the value of the copper sector

As of 1 July 2020, the "Special" and "Copper" businesses were legally separated within the company KME Germany GmbH & Co. KG. The two businesses are now part of KME Special Products GmbH & Co. KG and KME Germany GmbH (both direct subsidiaries of KME SE). The legal separation of the two businesses will allow for improved operations management and increase the management's focus, in addition to making it possible to pursue individual enhancement paths and differentiated strategic solutions.

Revenues from sales amounted to Euro 1,882.4 million (-16.4% compared to 2019), revenues from sales net of raw materials equalled Euro 531.9 million (-11.3% compared to 2019) and EBITDA came to Euro 75.1 million (-13.2% compared to 2019). Especially in the second part of the year, these data suffered from the consequences of the climate of uncertainty linked to the effects of the Covid-19 pandemic. The initial months of 2021 instead marked a decisive recovery in business volumes.

(ii) Culti Milano SpA

Culti Milano is accentuating its conversion into a company focusing on personal well- being (perfumes, personal hygiene, cosmetics), with the acquisition of the controlling holding of Bakel Srl (2019), a company whose business focuses on cosmetics products made from natural active ingredients, and Scent Company Srl (2020), a company active in olfactory branding. A joint venture was also launched in Hong Kong and a subsidiary was opened in Shanghai.

Culti and its subsidiaries recorded pro-forma consolidated turnover in 2020 of Euro

1. 15.3 million and a pro-forma consolidated EBITDA of Euro 3.6 million, compared to Euro 14 million and Euro 1.8 million, respectively, in 2019.

2. Extraordinary finance transactions

The new five-year2020-2025 Intek Group Bond for a total of Euro 75.9 million and with a fixed interest rate of 4.5% was issued in February 2020. Between the public subscription offer and the exchange offer on the previous Intek bonds, demand totalled Euro 92.6 million. This transaction made it possible to improve the configuration of Intek's debt by extending its maturity and reducing its cost.

The following are currently under way:

• the issue and assignment of free warrants to all shareholders (ordinary and savings) with an exercise price of Euro 0.40;
• the Public Exchange Offer on Intek Savings Shares, with the consideration of a 2020-2025 Intek Group bond with a nominal value of Euro 21.60 for every 43 savings shares.

These transactions were deferred pending the publication of the financial statement data and are expected to be completed by the end of July.

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Summary of the Group's corporate structure as at 31 December 2020

Intek Group holds the following primary shareholdings as at 31 December 2020:

• KME SE: head of a leading global group in the production and marketing of semi-finished
  copper and copper-alloy products, operating in two separate business segments: Special and Copper;
• Culti Milano SpA: listed on the AIM market, increasingly geared towards personal well- being, aside from the consolidation of its traditional business in the environmental fragrance segment;
• Intek Investimenti SpA: this is the corporate vehicle in which investment and private equity activities of the Intek Group are now concentrated, also with a focus on the topics of sustainability;
• Ducati Energia SpA: this is a non-controlling equity investment of Intek Group (6.67% of the share capital through all special shares) active in various, appealing business segments (condensers, industrial power factor correction, railway signalling, measurement tools, sustainable mobility, Intelligent Transportation Systems).

Compared to the situation as at 31 December 2019, the process of streamlining the Group corporate structure continued through the transactions described below:

• Disposal of equity investment in Ducati Energia SpA by Immobiliare Pictea Srl to Intek Group;
• Transfer to KME SE of the entire equity investment in Immobiliare Pictea Srl;
• Transfer to Intek Investimenti SpA of the equity investment in Isno 3 Srl in liquidazione;

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• Liquidation, closed on 31 March 2021, of I2 Capital Partners SGR SpA, a company that operated in the management of mutual investment funds.

The disposal of the equity investment in Ducati Energia by Immobiliare Pictea to Intek Group and the transfer of Immobiliare Pictea to KME SE are part of a broader project for the concentration of the real estate portfolio held in Italy by Intek and its subsidiaries. Also as part of this project, in April 2021 the shareholders' meetings of Immobiliare Pictea and KME Italy SpA approved the plan for the partial demerger of the real estate assets not strictly for business use with respect to the core business of KME Italy to Immobiliare Pictea. The demerger, with KME Italy's concentration purely in industrial activities relating to laminated copper products, may also be functional to business combinations with other industrial operators.

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Intek Group SpA highlights

Intek Group's financial highlights as at 31 December 2020, compared to 31 December 2019, can be summarised as follows:

(in thousands of Euro)	31 Dec 2020	31 Dec 2019
Copper	514,082	90.14%	494,434	86.69%
Culti	27,309	4.79%	13,646	2.39%
Ducati Energia	16,013	2.81%	16,000	2.81%
Intek Investimenti	10,241	1.80%	9,005	1.58%
Immobiliare Pictea	-	0.00%	16,741	2.94%
I2 Capital Partners SGR in liquidazione	(104)	-0.02%	32	0.01%
Other investments	2,165	0.38%	2,752	0.48%
Other assets/liabilities	634	0.11%	313	0.05%
Net investments	570,340	100.00%	552,923	100.00%
Outstanding bonds (*)	(78,288)		(106,000)
Net cash from third parties	15,128		53,914
Net financial debt of the holding company to third parties	(63,160)	-11.07%	(52,086)	-9.42%
Total equity	507,180	88.93%	500,837	90.58%
Notes:

1. • For improved comparability, the data relating to 2019 have been restated in order to better understand the effect of the disposal of Ducati Energia by Immobiliare Pictea to Intek Group and the transfer of Isno 3 to Intek Investimenti.
   • In the table, investments are showed net of any financial receivable/payable transactions outstanding with the Intek Group.
2. including accruing interests.
3. 
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Investments

The Net investments held by the Company amounted to Euro 570.3 million as at 31 December 2020 (Euro 552.9 million at the end of 2019), of which around 90% concentrated in KME SE.

The increase in the investment in KME SE is linked to the transfer of Immobiliare Pictea (Euro 19.7 million).

Culti Milano was up due to the effects of the positive valuation linked to result trends.

Equity

The holding company's equity amounted to Euro 507.2 million, compared to Euro 500.8 million as at 31 December 2019; the change, net of the buyback of treasury shares for Euro 0.2 million, was caused solely by the result for the year.

Equity per share was Euro 1.17 (1.15 at the end of December 2019).

Financial management

Net financial debt of the holding company to third parties (excluding intra-group loans and leasing liabilities) totalled Euro 63.2 million as at 31 December 2020. The balance as at 31 December 2019 was Euro 52.1 million.

At the end of December 2020, Intek Group had cash and cash equivalents of Euro 15.3 million.

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Extraordinary finance transactions

In the course of 2020 and the early months of 2021, Intek Group was involved in three related extraordinary finance transactions, two of which are still being carried out.

These include:

• the issue of the "Intek Group S.p.A. 2020-2025" bond in February 2020;
• the voluntary total public exchange offer on Intek Group SpA savings shares;
• the issue and assignment of warrants.

The "Intek Group S.p.A. 2020-2025" bond was issued through a voluntary partial public exchange offer on 2,354,253 bonds resulting from the "Intek Group S.p.A. 2015-2020" bond issue and a public subscription offer. For the two offers, requests amounted to Euro 92.6 million, against Euro

75.9 million offered. The financial resources from the Subscription Offer, together with those from the loan obtained from a credit institution for Euro 25.0 million and with the financial resources already held by Intek, allowed for the redemption of the 2015-2020 Bonds, maturing on 20 February 2020 and not used to participate in the Exchange Offer on Bonds. The "Intek Group S.p.A. 2020-2025" bond has characteristics similar to the previous "Intek Group S.p.A. 2015-2020" bond, except that the interest rate is 4.5% rather than 5%.

This transaction made it possible to improve the configuration of Intek's debt by extending its maturity and reducing its cost.

When the issue of the Bond was announced to the market, on 3 December 2019 the promotion of a voluntary total public exchange offer on the Savings Shares was also announced (the "Exchange Offer on Savings Shares" or the "Offer"), with consideration represented by 1 2020-2025 Bond, with a unit nominal value of Euro 21.60, for every 43 Savings Shares contributed, acquired for a total nominal value of up to roughly Euro 25.2 million. The Exchange Offer on Savings Shares was subject, first of all, to the issue as part of the two offers mentioned above of the 2020-2025 Bonds for a total amount of at least Euro 60.0 million and, in the second place, to the non-occurrence of the events pursuant to the MAC condition and the approval of the transaction by the Intek ordinary and extraordinary shareholders' meetings.

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