Interpump S p A : 2021 Financial Results

THE BOARD OF DIRECTORS APPROVES 2021 CONSOLIDATED RESULTS 1

Net Sales: € 1,604.3 million, up by 23.9% compared to € 1,294.4 million of 2020

EBITDA: € 379.8 million, up by 29.1% compared to € 294.1 million of 2020

and with an EBITDA margin of 23.7% (22.7% in 2020)

Normalised Consolidated Net Profit: € 216.4 million, up by 47,5%

compared to € 146.7 million of 2020

Free Cash Flow: € 133.8 million compared to € 203.8 million of 2020

(after € 106.7 million of CAPEX)

Net Financial Position: € 494.9 million compared to € 269.5 million as of 31 December 2020

(after € 321.4 million of acquisitions, € 29.5 million of dividends paid and € 22.4 million of treasury shares purchases)

PROPOSED DIVIDEND of € 0.28 (€ 0.26 in Financial Year 2020)

APPROVAL OF CONSOLIDATED NON-FINANCIAL STATEMENT

AUTHORIZATION TO SHARE BUY-BACK

APPROVAL OF THREE-YEAR INCENTIVE PLAN

Sant'Ilario d'Enza (RE), 18 March 2022 - The Board of Directors of Interpump Group S.p.A. met today and chaired by Mr. Fulvio Montipò approved the draft of 2021 separated financial statements and 2021

consolidated results.2

1. Prepared according ESEF format
2. It's recalled that in 2021 financial year for the first time the following companies were consolidated: for the entire period
   DZ Trasmissioni (acquired on 14th January 2021) and Suministros Franquesa (acquired in 2020 but not consolidated due to its lack of relevance), for IV quarter White Drive Products (acquired on 1st October 2021) and for the two months November- December Berma (acquired on 11st November 2021). Please take note of the different consolidation period of Servizi

1

2021 CONSOLIDATED RESULTS

Net sales

In 2021, net sales totaled 1,604.3 million euro, up by 23.9% compared to 1,294.4 million euro of 2020: by business sector, Hydraulics increased by 28.6% while Water-Jetting by 13.9%.

Organically3 Group increased by 20.1%, with Hydraulics and Water-Jetting up by 22.8% and 14.4% respectively.

Profitability

EBITDA amounted to 379.8 million euro, with a growth of 29.1% compared to 294.1 million euro of 2020; EBITDA margin was equal to 23.7% of sales with respect of 22.7% of previous period.

Into details of Group divisions, EBITDA of Hydraulic was 246.9 million euro, up by 34.6% compared to 183,5 million euro of 2020 and with an EBITDA margin which grew from 20.8% to 21.7% while Water- Jetting EBITDA was equal to 132.8 million, with an increase by 20.1% compared to 110.6 million of previous period and an EBITDA margin of 28% (26.7% in 2020).

EBIT was 295.0 million euro, up by 42.1% compared to 207.7 million euro in 2020 and an EBIT margin of 18.4% of sales (16.0% of sales)

Group net profit for 2021 was 198.6 million euro, up by 14.6% compared to 173.3 million of 2020. This amount reflects the adjustment of the value of put options on non-controlling interests held in subsidiaries4 and the conservative partial reversal, implemented following a legislative change approved on 23rd December 2021, of the effect of the deferred tax asset recognition related to the franking of Parent Company goodwill as well as the revaluation of trademarks5. Excluding these two effects, normalized6 Group net profit was equal to 216.4 million euro, with a growth of 47.5% compared to 146.7 million euro of previous period.

Basic earnings per share increased from € 1.596 of 2020 to 1.837 of 2021.

Industriali (acquired on 21st July 2020) which in the previous financial year was consolidated for II half while in 2021 was consolidated for the entire period.

1. Variation at constant perimeter and exchange rate
2. For a negative impact of € 18.3 million euro in the fiscal year
3. In details, the Parent Company goodwill franking was recorded in the Financial Statements of December 31, 2020, and the trademarks revaluation - solely for fiscal purpose - in the Interim Financial Report as of June 30, 2021: these entries and the related subsequent partial reversal had a positive net impact equal to € 0.5 million in 2021
4. Net profit normalization refers to the sterilization of the two accounting events above explained

At December 31, 2021, capital employed was equal 1,901.0 million compared to 1,482.2 million euro at December 31, 2020, mainly as a result of the important acquisitions made.

ROCE was 15.5% compared to 14.0% in 2020 while ROE was 15% versus 15.1% in 2020.

Balance sheet figures as of 31 December 2021

Net Cash from Operation was equal to € 317.8 million euro, up by 39.0% compared to € 228.6 million euro of 2020 while Free Cash Flow amounted in 133.8 million euro versus € 203.8 million of the previous period due to the higher CAPEX and net working capital increase driven by strong growth.

Net debt as of December 31,2021 was 494.9 million euro compared to 269.5 million euro at the end of 2020: the increase was mainly due to the acquisitions done in the period - White Drive and Berma -, which originated an increase of 321.4 million euro. Dividends totaling 29.5 million euro were also paid during the year and purchases of treasury shares amounted to 22.4 million euro.

Additionally, as of December 31,2021 the Group had commitments for the acquisition of stakes in subsidiaries totaling 77.8 million euro (62.7 million euro as of 31 December 2020).

At December 31, 2021 Interpump Group S.p.A. held 2,480,643 treasury shares, representing 2.278% of share capital, purchased at an average cost of € 32.3556 each.

Events occurring after the end of the year and business outlook

No atypical or unusual transactions have been carried out after December 31,2021 that would call for changes to these consolidated financial statements.

During 2021 a remarkable recovery of the global economy occurred driven by the easing of the strict pandemic countermeasures and the vaccine campaign acceleration, and it was sustained by national plans aimed to support infrastructural, energy transition and digitisation development projects too. The strong recovery went along with a material inflationary trend driven mostly by energy and raw material price increase and repeated disruptions of the supply chain. Towards the end of 2021, some central banks showed confidence in the economic recovery and began withdrawing some monetary stimulus measures, also with a view to containing rising inflation.

2021 results testify the Group capability to both proactively and seamlessly serving its customers and efficiently managing its industrial footprint. This is evidenced by the business results exceeding the pre pandemic level with a significant improvement in margins.

2022 outset appears to confirm this positive trend evolution, also in view of the remarkable demand increase after previous year strong performance, with earnings also supported by the ability to implement pricing policies which should consent to contain inflation-driven cost pressures.

Notwithstanding future positive expectations of economic growth and Interpump confidence to be able to express itself on the usual levels of excellence, for the short period some uncertainties remain present, also due to ongoing inflationary trends driven by supply chain disruptions, by growing raw material and energy prices and by pandemic evolution. Increasing geopolitical tensions and negative impacts from Ukraine military conflict, despite that Interpump Group direct exposure towards involved countries is limited, are notwithstanding additional instability sources and discontinuity elements for global economy activities.

APPROVAL OF 2021 FINANCIAL STATEMENTS

The Board of Directors therefore resolved to call the Annual Shareholder's Meeting convened, in a single call on April 29th, 2022, for the approval of 2021 Financial Statements

DIVIDEND PROPOSAL

Based on the results for 2021, the Board of Directors will recommend to the forthcoming Annual General Meeting that a dividend of €0.28 per share be distributed, (28 euro cents) compared to the one of € 0.26 euros (26 euro cents) of 2020. If approved, the dividend will be paid out on May 25th, 2022, with ex- dividend date (detachment of coupon n° 29) on May 23rd (record date May 24th).7

SUSTAINABILITY UPDATE

Today results of the ESG8 mapping, analyzing and benchmark activity, started some months ago by a new dedicated team coordinated by the Control, Risk & Sustainability Committees, were presented to the Board of Directors.

1. For tax purposes, the dividend shall be considered originating from reserves accumulated after the financial year which included 31 December 2007, and within the financial year which included 31 December 2016.
2. Environmental, Social and Governance

CONSOLIDATED NON-FINANCIAL STATEMENT

The Board of Directors approved the Consolidated Disclosure of Non-financial Information (DNF) complying with Legislative Decree 254/16, with specific regard to environmental, social and personnel aspect, respect for human rights and the fight against active and passive corruption.

The DNF will be made available within the same terms set forth for the 2021 Financial Statements.

REPORT ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURES and REPORT ON REMUNERATION POLICY AND COMPENSATION PAID

Pursuant to article 123-bis of the Consolidated Finance Act (TUF), the Board approved the Report on Corporate Governance and Ownership Structures for Financial Year 2021.

In addition, pursuant to article 123-ter of TUF the Board approved the second section of the "Report on remuneration policy and compensation paid" of Interpump Group S.p.A. and resolved to submit it to the April 29th, 2022, forthcoming Annual Shareholders' Meeting to express an advisory opinion according to article 123-ter, article 6 of TUF, notwithstanding that the first section of Remuneration Policy of the above-mentioned Report remains unchanged.

Both documents will be published and advertised in accordance with the law.

AUTHORIZATION TO BUY BACK TREASURY SHARES

The forthcoming Shareholding Meeting of April 29th, 2022, convened in ordinary and extraordinary session in accordance with the law, will be requested to authorize the buy-back dispose of treasury shares.

In particular, it will be proposed to the Shareholding Meeting to withdraw the current authorization and to authorize a new one until October 2023 with the following terms.

The buy-back authorization - to be implemented through purchase on regulated markets or public purchase or exchange offer in accordance with the terms and conditions set forth by the regulations governing the organization and management of these market - has an object a maximum treasury shares as consented by the law with a buyback price between € 0.52 (52 euro cents) and € 85.00 ( eighty five euro). The authorization has a maximum term of 18 months by the Shareholders' approval date. Purposes of the buy-back and dispose authorization requested are investment opportunities, securities price stabilization in low liquidity market phase, exchange driven by acquisitions and/or commercial agreement with strategic partners and the execution of actual or future incentive plans (for additional details please refers to the Directors' Report prepared pursuant to article 125-ter of TUF will be made available within the terms provided in accordance with the law)