Italmobiliare S p A : First half 2021 results reviewed by Board of Directors

PRESS RELEASE

FIRST HALF 2021 RESULTS REVIEWED BY BOARD OF DIRECTORS

• ITALMOBILIARE S.p.A.

• At June 30, 2021, the NAV of Italmobiliare exceeds 2 billion euro (1,838.2 million euro at December 31, 2020), with the NAV of the Portfolio Companies rising to 1,252.8 million (+130.7 million euro on December 31, 2020). The total change also reflects the increase in the market value of the investment in HeidelbergCement AG (+10.6 million euro), of the other listed investments (+5.5 million euro) and of the private equity funds (+18.2 million euro), net of dividends paid out.
• The NAV per share amounts to 47.31 euro, an increase of 10.31% compared with the end of 2020, gross of dividends paid (+8.65% net of the dividend of 0.65 euro per share).
• During the half year, the overall performance of the Portfolio Companies, which represent more than 60% of NAV, showed a decidedly positive result compared with both 2020 and 2019 prior to Covid.
• All of the companies closed the half year with a growth of over 15% on 2020 (with the exception of Sirap, penalised by the loss in intragroup revenues) with revenue higher than the same period in 2019 and a rising GOP. The Officina Profumo-Farmaceutica di Santa Maria Novella, which has had another less than brilliant result in the retail segment because of the pandemic, was the only exception.
• For Italmobiliare S.p.A., revenue increased during the half year mainly due to the increase in dividends approved or collected from investee companies and the positive results from the financial assets.
• The consolidated financial position at June 30, 2021 was a positive balance of 354.5 million euro, compared with 320.8 million euro at the end of December 2020.
• At a consolidated level, revenue came to 232.7 million euro (155.6 million at June 30, 2020) and the profit to 117.4 million (1.4 million in the first half of 2020).

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Milan, July 29, 2021. Italmobiliare's Board of Directors has reviewed and approved the interim report at June 30, 2021. At the end of the half year, the NAV of Italmobiliare was equal to 2 billion euro or 2,000.2 million euro (1,838.2 million euro at December 31, 2020), with a change linked in particular to the increase in Portfolio Companies (+130.7 million euro, already net of dividend distributed for 27.1 million euro) of HeidelbergCement AG (+10.6 million euro) and other listed investments (+5.5 million euro) and Private Equity fund (+18.2 million euro). In absolute terms, the greatest increase is linked to Caffè Borbone, while, in relative terms, the company that sees its NAV grow more than at the end of 2020 is Tecnica Group, which shows that it has overcome the problems caused by the pandemic. All the other portfolio companies are either growing or substantially stable. At

June 30, 2021, the NAV per share of Italmobiliare S.p.A. amounted to 47.31 euro, an increase of 8.65% compared with December 31, 2020 (after paying a dividend of 0.65 euro per share), or 10.31% gross of the dividend distribution.

For Italmobiliare S.p.A., the first half of 2021 closed with a positive result of 41.7 million euro (negative for 16.6 million euro at June 30, 2020).

"Achieving a symbolic and important goal such as a NAV of two billion euro - says Chief Executive Officer Carlo Pesenti - highlights the solid and continuous growth of the portfolio companies, as is the value of Italmobiliare's support, capable of enhancing the excellences that our country expresses, even in scenarios of considerable uncertainty, and of providing the tools for governance, operational excellence, financial flexibility and effective risk management so that they can best exploit the emerging economic, technological and consumption trends which are being accelerated considerably by the pandemic experience. Italmobiliare's strategy, which is increasingly characterised by the integration of ESG best practices in the development plans of its investee companies, traces the path -from commitment to values to daily operations- with coherence and effectiveness and reflects the European and international focus on the ecological and energy transition of business activities".

Even though the situation still makes it difficult to offer a thoughtful and detailed assessment of the future, we can confirm the overall solidity of the portfolio and the ability to seize opportunities to enhance synergies, to strengthen best practices already in place and to open up new opportunities offered by structural changes. In particular, in the food sector, Caffè Borbone confirms its growth trajectory and Capitelli is growing in terms of both revenue and gross operating profit. In the energy sector, Italgen closed a decidedly positive half year, Autogas also turned in a positive performance, which in addition to the growth in revenue and gross operating profit, also posted good cash generation during the period. In the industrial sector, neutralising some contingent factors, the first half year of the "new" Sirap (after selling its main assets in February and April 2021) is essentially in line with the same period of the previous year. Iseo has done very well, demonstrating that it has overcome the problems that it had due to the initial impact of Covid. Tecnica Group closes the period with positive performances and results that are decidedly better than 2020 and well above even pre-Covid levels, although the difficulties affecting the sector of winter brands in Europe. Officina Profumo-Farmaceutica di Santa Maria Novella closes the half year up on 2020, while still suffering the difficulties of the retail business due to the restrictions caused by the pandemic. The companies that entered the portfolio at the end of 2020 (Casa della Salute and Callmewine) continue to demonstrate their growth potential.

In March 2021 Italmobiliare, already an investor in the Clessidra Capital Partners 3 fund, participated as one of the fund's co-investors in the operation which saw the acquisition by the Clessidra Capital Partners 3 fund of a majority stake in Botter, a Venetian company that is one of the major exporters of Italian wine in the world, owned by the Botter family and DeA Capital. After June 30, part of the co-investment in the Clessidra IV fund was sold. In June 2021 Italmobiliare signed a commitment to the first closing of 75 million euro of the Clessidra Capital Partners 4 fund.

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Milan, July 29, 2021 - The Board of Directors of Italmobiliare S.p.A. today reviewed and approved the consolidated interim financial statements at June 30.

NET ASSET VALUE (NAV)

NAV 3 0 J U N E , 2 0 2 1 - %

NAV 30/06/2021	2,000.22
NAV 31/12/2020	1,838.25

The Net Asset Value (NAV) of Italmobiliare at June 30, 2021, excluding treasury shares, amounted to 2,000.2 million (1,838.2 million at December 31, 2020).

The main changes in NAV are due to the increase in the fair value of the portfolio companies (+ 130.7 million euro, net of dividends paid of 27.1 million euro), of HeidelbergCement AG (+10.6 million euro) and of the other listed investments (+5.5 million euro mainly attributable to the investment in the finance company Fin.Priv. which holds shares in Mediobanca) and of the private equity funds (+18.2 million euro).

In particular, as regards the Portfolio Companies, the greatest increase in absolute terms is linked to Caffè Borbone, while, in relative terms, the company that sees its NAV grow more than at the end of 2020 is Tecnica Group, which shows that in the first half of 2021 it has overcome the problems caused by the initial impact of the pandemic. All the other portfolio companies are either growing or substantially stable.

At June 30, 2021 the NAV per share of Italmobiliare S.p.A., excluding treasury shares, amounts to 47.31 euro.

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SUMMARY OF RESULTS

For Italmobiliare S.p.A., the first half of 2021 closed with a positive result of 41.7 million euro (negative for 16.6 million euro at June 30, 2020).

Net income and charges from equity investments are positive for 30.1 million euro, up on the 8.6 million euro at June 30, 2020, mainly because of higher dividends collected or approved (+21.0 million euro, mainly due to postponement in 2020 of the distribution of dividends by Caffè Borbone following the Covid-19 risk, which were then distributed in the second half of 2020). Furthermore, there were write-downs of equity investments for 0.5 million euro in 2020 (zero in 2021).

Net gains on investments of cash and cash equivalents show a positive balance of 29.9 million euro (negative for 10.9 million euro at June 30, 2020). The change is mainly due to the positive performance of trading investments and investment funds which in 2020 were penalized by the negative performance of international markets because of the pandemic.

Other income and expense are negative for 14.5 million euro (-19.1 million euro at June 30, 2020), down mainly because of higher extraordinary operating costs recorded in 2020 (5.8 million euro for MBO and LTI payments referring to the previous three years and donations). At June 30, 2021 the net financial position of Italmobiliare S.p.A. is showing a decrease of

59.96 million euro, going from 387.17 million euro at December 31, 2020 to 327.21 million euro at the end of June 2020. The main flows include the investment as co-investor of the Clessidra Capital Partners 3 fund in the acquisition of Casa Vinicola Botter Carlo & C. S.p.A., through Bacco (-43.6 million euro), the investment in private equity funds (- 23.9 million euro) and other investments (-19.5 million euro), partially offset by the sale of HeidelbergCement shares (+29.9 million euro). Equity at June 30, 2021 amounts to 1,315.3 million euro, 35.1 million euro up on December 31, 2020 (1,280.2 million euro).

At a consolidated level, the profit came to 117.4 million compared with 1.4 million euro at June 30, 2020. Compared with what was indicated in the quarterly report, due to a different accounting method (IFRS 10) of the consolidated capital gain generated by the sale of Sirap's assets to Faerch, the result of discontinued operations has been reduced to 65.9 million euro. The result attributable to the owners of the parent company was a profit of 107.1 million euro. The equity attributable to the owners of the parent company comes in at 1,413.8 million euro (1,330.4 million euro at December 31, 2020).

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Breakdown of consolidated profit by segment

(in millions of euro)	June 2021	June 2020
Business segments
Italmobiliare	41.7	(16.9)
Caffè Borbone	14.8	14.0
Sirap	70.0	2.2
Italgen	4.9	2.4
Capitelli	1.7	0.8
Officina Profumo-Farmaceutica di Santa Maria Novella	0.9	0.2
Casa della Salute	(0.1)	0.0
Callmewine	(0.1)	0.0
Tecnica Group	(1.0)	(6.6)
Autogas Nord - AGN Energia	6.6	2.2
Iseo	2.9	(1.2)
Other companies	(1.0)	1.0
Elimination of dividends and infragroup gains/losses	(34.2)	(6.2)
Profit/(loss) for the period attributable to owners of the parent company	107.1	(8.1)

The other main economic results of the Italmobiliare Group are: Revenue: 232.7 million on 155.6 million at June 30, 2020; Gross operating profit: 80.1 million (15.6 million); Operating profit: 69.1 million (7.9 million).

(2020 figures are reviewed on the basis of the exclusion of Sirap from the consolidation area).

PERFORMANCE OF THE

PORTFOLIO COMPANIES

Performance of the main Group companies

(in millions of euro)				Revenue				Gross operating profit (EBITDA)		Fcf1
		June 30		June 30				June 30		June 30			1st half
			Change %			Change %	2021
		2021		2020		2021		2020
									Actual
Italmobiliare		63.9		30.5	>100		45.9		(20.6)	>100	n.s.
Portfolio companies
Caffè Borbone		129.2		104.1	24.1		46.2		34.3	34.8	29.5
Officina Profumo-
Farmaceutica di Santa		12.1		10.5	15.5		3.8		2.8	37.2	4.2
Maria Novella
Sirap		34.5		35.4	(2.4)			0.2		0.9	(73.2)		n.s.
Italgen		18.3		13.5	35.2		8.7		5.0	75.5	3.4
Casa della Salute		12.5		6.6	90.2		1.6		0.4	>100	(8.3)
Capitelli		8.4		7.2	16.4		2.0		1.8	13.9	(0.2)
Callmewine		8.3		5.4	52.7		0.0		0.3	(85.1)		(1.4)
Tecnica Group		173.7		136.8	27.0		17.1		2.7	> 100	10.8
Autogas Nord - AGN		259.5		224.2	15.7		34.4		27.4	25.5	34.0
Energia
Iseo		78.6		57.5	36.7		12.0		4.0	>100	(0.9)
Total portfolio		735.1		601.2	22.3			126.0		79.6	58.3		71.1
companies

n.s.: not significant

As regards the Portfolio Companies, the first half year closes with a decidedly positive result if compared with both 2020 and 2019 prior to Covid. Looking at the pro-forma aggregate

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