Italmobiliare S p A : First half 2022 results reviewed by board of directors

PRESS RELEASE

FIRST HALF 2022 RESULTS REVIEWED BY BOARD OF DIRECTORS

• ITALMOBILIARE S.p.A.
• • Italmobiliare continues its strategy of expanding its investment portfolio and supporting situations of Italian excellence with the closing of capital investment in Bene Assicurazioni and the acquisition of SIDI Sport, an iconic brand in the world of cycling and motorcycling footwear, in July 2022.
  • Italmobiliare's NAV at June 30, 2022 was 1,975.1 million euro (2,082.1 million euro at December 31, 2021), after the payment of dividends for a total of 59.2 million euro and taxes of 21 million euro.
  • The NAV of the portfolio companies increased to 1,274.4 million euro, mainly as a result of the acquisition of Bene Assicurazioni, and was stable on a like-for-like basis (net of dividend distributions and new investments in the first half), despite the increase in the discount rates used in equity investment valuation.
  • NAV per share is 46.71 euro (-2.29% compared with December 31, 2021), gross of total dividend distribution of 1.40 euro per share.
  • During the half year, the overall results of the Portfolio Companies - which represent 64.5% of the NAV - showed revenues of 843.8 million euro, up by 19% compared with the first half of the previous year.
  • EBITDA of the portfolio companies for the half year comes to 93.8 million euro (-25% compared with the same period of 2021), mainly due to the neutralization of some positive contingent factors which had a positive impact the first half of last year and to the negative impact on the margins linked to the increase in raw material costs which is expected to be at least partially offset during the second half of the year.
  • At June 30, 2022 the net financial position of Italmobiliare S.p.A. was showing a positive balance of 220.7 million euro (337.5 million euro at December 31, 2021).

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Milan, July 28, 2022. Italmobiliare's Board of Directors has reviewed and approved the interim report at June 30, 2022.

At the end of the half year, Italmobiliare's NAV amounts to 1,975.1 million euro (2,082.1 million euro at December 31, 2021), with the variance related in particular to the distribution of dividends for 59.2 million euro; the payment of taxes of 21 million euro and overheads of 11.4 million euro; the negative performance of listed investments (HeidelbergCement AG -8.9 million euro), trading -12.4 million euro and other equity investments - 9.5 million euro; a positive performance by the Private Equity Funds for 13.6 million euro (including a positive exchange rate delta of 9.6 million euro). On a like-for-like basis compared with the previous year, the value of the Portfolio Companies net of dividend distributions and new investments in the first half (in particular the acquisition of Bene Assicurazioni for 41 million euro) is stable.

At June 30, 2022, Italmobiliare's NAV per share amounts to 46.71 euro (-2.29% compared with December 31, 2021), gross of total dividend distribution of 1.40 euro per share. For Italmobiliare S.p.A., the first half of 2022 closed with a positive result of 55.7 million euro (41.7 million euro at June 30, 2021).

"Even in a context of persistently high uncertainty, the figures for the first half of this year are substantially in line with budget, except for the exceptional drought that impacted Italgen's results - underlines the Chief Executive Officer Carlo Pesenti - and they confirm the value of our highly diversified portfolio, characterised by pro-active and organic risk management, implementation of the highest standards in corporate governance procedures and stringent financial discipline. The integration of ESG policies, objectives and plans as a characterising element of Italmobiliare's activity as a holding company is the precondition for pursuing ambitious development trajectories for our Portfolio Companies, even in complex times like these, without renouncing new acquisitions in line with the mission to support Italian excellence, as evidenced by the agreement just signed for the acquisition of Sidi".

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 of Italmobiliare to stimulate and encourage that quantum leap that is needed more than ever in times of acute uncertainty. In the food sector Caffè Borbone and Capitelli closed the half year with revenues up on the first half of 2021, but with EBITDA down because of the short- term impact of raw material costs on production margins. In the energy sector, Italgen is suffering from the extreme drought that characterised the period with EBITDA in sharp decline; AGN Energia posted an increase in revenue due to the higher cost of LPG and EBITDA down, again due to the increase in raw material costs. In the industrial sector, Iseo has done well, with revenue up and EBITDA substantially constant despite the increase in raw material costs. Tecnica Group closed the period with good results, even though they do not fully reflect the high order backlog, which shows excellent potential for the rest of the year. Officina Profumo-Farmaceutica di Santa Maria Novella is growing strongly compared with 2021 (+61%), mainly thanks to direct retail sales. Casa della Salute has grown significantly in terms of both revenue and EBITDA, while Callmewine closed the half year with revenue down by 7% compared with the first half of 2021, which benefited from the higher domestic consumption of wine during the lock-down.

In March 2022 Italmobiliare and Clessidra made a 22.99% co-investment in Archimede S.p.A., the parent of Formula Impresoft S.p.A., which is active in the IT sector.

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Milan, July 28, 2022 - The Board of Directors of Italmobiliare S.p.A. today reviewed and approved the consolidated interim financial statements at June 30, 2022.

NET ASSET VALUE (NAV)

PORTFOLIO COMPANIES 1,274.39 64.53%

OTHER

INVESTMENTS

135.38

6.85%

LISTED EQUITY
INVESTMENTS
29.80
1.50%			PRIVATE EQUITY
FINANCIAL ASSETS,			FUNDS AND CO-
PROPERTY AND	INVESTMENTS
TRADING, CASH AND
RELATED ASSETS	216.79
CASH EQUIVALENTS
48.97	10.98%
269.73
2.48%
13.66%

The Net Asset Value (NAV) of Italmobiliare at June 30, 2022, excluding treasury shares, amounted to 1,975.1 million euro (2,082.1 at December 31, 2021).

The main changes in NAV are due to distribution of dividends for 59.2 million euro; tax payments for 21 million euro and holding operating costs for 11.4 million euro; negative performance of listed equity investments (HeidelbergCement AG -8.9 million euro), trading activities for 12.4 million euro and other investments for 9.6 million euro; partially offset by the positive performance of private equity funds for 13.6 million euro (including a positive exchange rate difference of 9.5 million euro).

In particular, as regards the Portfolio Companies, the NAV value of 1,274.4 million euro was influenced by the acquisition of Bene Assicurazioni (41 million euro), the capital increases or payments on capital account for Casa della Salute (4.3 million euro), Clessidra Holding (4.5 million euro) and Callmewine (4.5 million euro), partially offset by dividend distribution for 39.5 million euro (with the exception of Sirap Gema, which has been reclassified to "Financial assets, trading, cash and cash equivalents", as it now only has the liquidity from the divestment of its assets).

At June 30, 2022 the NAV per share of Italmobiliare S.p.A., excluding treasury shares, amounts to 46.71 euro.

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SUMMARY OF RESULTS

For Italmobiliare S.p.A.,the first half of 2022 closed with a positive result of 55.7 million euro (41.7 million euro at June 30, 2021).

Net income and charges from equity investments are positive for 66.9 million euro, up compared to the 30.1 million euro at June 30, 2021, mainly because of higher dividends approved. Note that this change is mainly attributable to the subsidiaries Sirap Gema and Caffè Borbone, which approved the distribution of dividends for 60 million euro and for 30 million euro respectively.

Net gains on investments of cash and cash equivalents show a positive balance of 2.2 million euro (positive for 29.9 million euro at June 30, 2021). The change is mainly due to the lower performance of private equity funds and the negative performance of investment funds compared with the previous period.

Other income and expense are negative for 13.6 million euro (-14.5 million euro at June 30, 2021), substantially in line with the previous period.

At June 30, 2022 the net financial position of Italmobiliare S.p.A. is showing a decrease of

116.8 million euro, going from 337.5 million euro at December 31, 2021 to 220.7 million euro at the end of June 2022, allocated for 66% to the Vontobel Fund which has a conservative risk profile consistent with the company's investment policies. The main flows include the investment in private equity funds, net of reimbursements (-14.7 million euro); the investment as co-investor of the Clessidra Capital Partners 4 in the capital of Archimede S.p.A. (Formula Impresoft) with an interest of 22.99% (-12 million euro); the investment in Bene Assicurazioni S.p.A. Società Benefit with an interest of 19.996% (-40 million euro), other investments (-20 million euro), and tax payments (-21 million euro). The payment of ordinary and extraordinary dividends was more than offset by dividends received from subsidiaries and associated companies.

Equity at June 30, 2022 amounts to 1,301.5 million euro, 19.3 million euro down compared to December 31, 2021 (1,320.8 million euro).

At a consolidated level, the profit came to 10.3 million compared with 117.4 million euro at June 30, 2021.

The result attributable to the owners of the parent company was a profit of 3.3 million euro. The equity attributable to the owners of the parent company comes in at 1,387.4 million euro (1,459.6 million euro at December 31, 2021).

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Breakdown of consolidated profit by segment

(in millions of euro)	June 2022	June 2021
Business segments
Italmobiliare	55.7	41.7
Caffè Borbone	10.8	14.8
Sirap	(2.2)	70.0
Italgen	(0.7)	4.9
Capitelli	0.6	1.7
Officina Profumo-Farmaceutica di Santa Maria Novella	1.1	0.9
Casa della Salute	(0.7)	(0.1)
Callmewine	(0.8)	(0.1)
Tecnica Group	(2.2)	(1.0)
AGN Energia	2.7	6.6
Iseo	2.4	2.9
Other companies	0.7	(1.0)
Elimination of dividends and intragroup gains/losses	(64.1)	(34.2)
Profit/(loss) for the period attributable to the Group	3.3	107.1

The other main economic results of the Italmobiliare Group are:

Revenue: 255.4 million on 232.7 million at June 30, 2021;

Gross operating profit: 37.8 million (80.1 million);

Operating profit: 22.0 million (69.1million).

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 %	2022
	2022		2021		2022		2021
							Actual
Italmobiliare	140.9		63.9	>100		103.5		45.9	>100		n.s.
Portfolio Companies
Caffè Borbone	134.0		129.2	3.7		33.9		46.2	(26.5)	8.0
Officina Profumo-Farmaceutica di	19.5		12.1	61.2		4.1		3.8	7.9	(1.0)
Santa Maria Novella
Italgen	22.3		18.3	21.8		0.9		8.7	(89.9)	(8.6)
Casa della Salute	16.6		12.5	32.8		2.5		1.6	56.3	(4.0)
Capitelli	9.7		8.4	15.4		1.6		2.0	(23.0)	0.2
Callmewine	7.7		8.3	(7.2)		(1.1)		0.0	n.s.	(3.0)
Tecnica Group	191.4		173.7	10.2		9.6		17.1	(43.6)	(21.0)
AGN Energia2	342.3		259.5	31.9		26.3		34.4	(23.5)	13.3
Iseo	84.6		78.6	7.6		11.4		12.0	(5.0)	(11.9)
Total Industrial Portfolio Companies	828.1		700.6	18.2		89.2		125.8	(29.1)	(28.0)
Clessidra Group	15.7		6.9	>100		4.6		(0.8)	>100		n.s.
Total Portfolio Companies3	843.8		707.5	19.3		93.8		125.0	(25.0)	(28.0)

1. Free Cash Flow is the difference between the net financial position at the end of the period and the net financial position at the end of the previous year, gross of dividends paid, capital increases or repayments, the impact of extraordinary operations and the effects of applying IFRS 16.
2. Note that during the first half of 2022 the extraordinary shareholders' meeting of the company approved the change in the company name from "Autogas Nord S.p.A." to "AGN Energia S.p.A."
3. The information in the table relates to the financial statements of each Group company regardless of the date of acquisition of control by Italmobiliare.

n.s. not significant

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