Italmobiliare S p A : Quarterly financial results at September 30, 2022

Additional periodic financial reporting at

SEPTEMBER 30, 2022

Milan, November 9, 2022

ITALMOBILIARE

Società per Azioni

Head Office: Via Borgonuovo, 20

20121 Milan - Italy

Share Capital € 100,166,937

Milan Companies Register

Translation from the Italian original version, which remains the definitive one.

ADDITIONAL PERIODIC FINANCIAL INFORMATION AS OF SEPTEMBER 30, 2022

General Overview

INTRODUCTION

In accordance with the regulatory framework that transposed the EU Directive (Transparency Directive) into Italian law, Italmobiliare has been issuing quarterly information, focusing on information that gives a concise overview of its business.

In particular, the information relates to the main economic and financial indicators of the Group (revenues, interim economic results, net financial position and Net Asset Value) which are expressed in quantitative form consistently with the same information already provided in the Annual and Interim Reports.

The periodic financial information, together with a summary of the main events that occurred during the quarter and a comment on the performance of the main subsidiaries and associates of the Italmobiliare Group, are approved by the Board of Directors and published on the Company's website.

SIGNIFICANT EVENTS DURING THE PERIOD

On July 18, 2022 Italmobiliare signed a preliminary contract for the acquisition of 100% of SIDI Sport S.r.l. (through the newco FT4 S.r.l.). SIDI is an iconic Italian brand specialising in the production and sale of cycling and motorcycling footwear used by the most important professional and amateur athletes all over the world. In 2021, SIDI Sport posted revenue of 38 million euro and EBITDA of 7 million euro. On October 25, Italmobiliare finalised the agreement based on an enterprise value of 66 million euro, plus 20 million euro in net cash held by the company. The overall outlay of around 86 million euro consists of a net payment by Italmobiliare of 53.5 million euro with the rest of the loans (32.5 million euro) borrowed from Banco BPM: the overall loan is equal to 37 million euro, of which 2 million euro of a revolving credit facility (RCF) currently not drawn down.

NET ASSET VALUE

At September 30, 2022 the Net Asset Value (NAV) of Italmobiliare S.p.A., excluding treasury shares, was equal to 1,962.8 million euro, substantially in line with June 30, 2022 (1,975.1 million euro) and down by 119.3 million euro on December 31, 2021 (2,082.1 million euro), following the payment of 59.2 million euro of dividends.

At September 30, 2022 the NAV per share (excluding treasury shares) amounted to 46.4 euro and, in consideration of the payment of dividends of 1.40 euro per share, showed a decrease of approximately 3% compared with December 31, 2021.

(in millions of euro)	December 31	June 30		September 30		% of total
2021(*)	2022		2022
Portfolio Companies1	1,260.9	1,274.4		1.274.4		64.9%
Listed equity investments2	38.7	29.8		26.6		1.4%
Other equity investments3	124.8	135.4		148.1		7.5%
Private equity funds	188.5	216.8		205.9		10.5%
Properties and related assets	49.8	49.0		49.2		2.5%
Financial assets, trading, cash and cash equivalents (**)	419.3	269.7		258.6		13.2%
Total Net Asset Value4-5	2,082.1	1,975.1		1,962.8		100.0%

1. "Portfolio Companies" include the investments in Italgen S.p.A., Caffè Borbone S.r.l., Clessidra Holding S.p.A., Tecnica Group S.p.A., Iseo Serrature S.p.A., AGN Energia S.p.A., Capitelli S.r.l., Officina Profumo-Farmaceutica di Santa Maria Novella S.p.A., Callmewine S.r.l., Casa della Salute S.p.A. and Bene Assicurazioni S.p.A. Società Benefit.
2. "Listed equity investments" include the main shareholdings in listed companies (HeidelbergCement AG).
3. "Other equity investments" include the equity investment in Archimede S.p.A. (parent company of Formula Impresoft S.p.A.) for 12 million euro, while the rest of the investment (8 million euro) are included in "Financial assets, trading, cash and cash equivalents" as part of the loan granted to Archimede S.p.A. by Italmobiliare.
4. Note that the NAV of the Portfolio Companies has been affected by the dividends distributed and include the cash generated by the sale of a 5% stake in the share capital of Officina Profumo-Farmaceutica di Santa Maria Novella S.p.A. by FT2 S.r.l.
5. The criteria adopted for calculating NAV may be different from those adopted by other companies, so the figures may not be comparable.

1. Figures relating to 2021 differ from what was published because the investment in Sirap Gema S.r.l. was reclassified from "Portfolio Companies" to "Financial assets, trading, cash and cash equivalents" as the only asset still held by the subsidiary is a financial investment, not attributable to the business sold by Sirap Gema S.r.l.

1. Note that "Financial assets, trading, cash and cash equivalents" include the net financial position of the parent company Italmobiliare for 209.6 million euro (337.5 million euro at December 31, 2021) and the investment in Sirap Gema S.r.l. for 49 million euro (82 million euro at December 31, 2021).

Compared with December 31, 2021 the decrease of Net Asset Value for 119.3 million euro is mainly attributable to:

• distribution of dividends for 59.2 million euro;
• tax payments (16.1 million euro) and operating costs (17.1 million euro) for total 33.2 million euro;
• negative performance of listed equity investments (HeidelbergCement AG -12.1 million euro), trading activities for -12.4 million euro and other investments for -6.6 million euro;
• positive performance of private equity funds for 6.1 million euro (including exchange gains of 16.9 million euro).

The value of Portfolio Companies, net of dividend distributions and new investments made in the first nine months of 2022, remained stable on a like-for-like basis compared with the previous year.

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With regard to the Portfolio Companies, the increase of value compared with December 31, 2021 was due to the acquisition of Bene Assicurazioni (41 million euro) and the capital increases or capital payments for future capital increases 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 39.9 million euro (with the exception of Sirap Gema, which has been reclassified to "Financial assets, trading, cash and cash equivalents", as it now only owns the liquidity from the divestment of its assets).

"Other investments" amounted to 148.1 million euro. The increase was mainly due to the investment in Archimede S.p.A. (parent company of Formula Impresoft S.p.A.), as part of the co-investment along with the Clessidra Capital Partners 4 Fund (12 million euro), and to the capital increases or capital payments for future capital increases for Farmagorà (7.8 million euro) and Florence InvestCo (8.2 million euro), partially offset by a decrease in the fair value (6.6 million euro) of some listed investments, due to the negative financial market performances and to the disposals occurred during the first nine months of 2022 (against an increase in liquidity).

"Financial assets, trading, cash and cash equivalents" decreased by 127.9 million euro due to the above, namely: 59.2 million euro of dividends paid by Italmobiliare, 84.0 million euro of new investments, 11.3 million euro of investments in private equity funds and 33.2 million euro of tax payments (16.1 million euro) and operating costs (17.1 million euro). This change was partially offset by 73.9 million euro of dividends received. The remaining investment in Sirap Gema was reclassified under this item, as it now only owns liquidity awaiting to be distributed to the parent company.

The NAV value was determined in accordance with the guidelines communicated to the market and the specific procedures in place, taking into consideration:

• the market price at September 30, 2022 of the equity investments in listed companies;
• the value of unlisted companies determined by an independent expert at June 30, 2022 as reported in the Interim Financial Report, in line with the Company's guidelines on the calculation of NAV for which the Portfolio Companies are assessed twice a year, at the time of the Annual Report and of the Interim Report;

▪

▪

the market value of real estate assets;

the effect of deferred taxation.

Additional periodic financial reporting as of September 30, 2022 | 5

PERFORMANCE OF THE MAIN GROUP COMPANIES

PRO-FORMA AGGREGATE - YTD RESULTS AT SEPTEMBER 30, 2022

				Revenue				Gross operating profit (EBITDA)
(in millions of euro)		September 30		September 30	Change		September 30		September 30	Change
	2022		2021	%			2022		2021	%
Italmobiliare		145.2		97.4	49.1		89.6		71.5	25.4
Portfolio Companies
Caffè Borbone		192.9		186.7	3.3		48.2		67.1	(28.1)
Officina Profumo-Farmaceutica		31.3		20.1	55.6		7.1		6.9	2.8
di Santa Maria Novella
Italgen		36.7		29.8	23.1		3.0		15.3	(80.5)
Casa della Salute		23.7		18.4	28.6		2.9		2.3	24.0
Capitelli		14.1		12.4	13.7		2.0		3.0	(33.7)
Callmewine		10.8		11.5	(5.6)		(1.2)		(0.3)	n.s.
Tecnica Group		363.5		301.1	20.7		50.4		49.9	1.0
AGN Energia1		492.3		364.0	35.3		33.9		36.3	(6.6)
Iseo		120.0		111.8	7.4		14.6		17.7	(17.3)
Total Industrial Portfolio Companies		1,285.4		1,055.8	21.8		160.9		198.2	(18.9)
Clessidra Group		23.0		12.3	87.4		7.1		0.5	>100
Total Portfolio Companies2		1,308.4		1,068.0	22.5		167.9		198.7	(15.5)

1. Note that during the first nine months 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.".
2. 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

As regards Italmobiliare, revenue at September 30, 2022 was up mainly due to the increase in the dividends approved by subsidiaries, associates and other equity investments (+84.2 million euro compared with September 30, 2021) and to exchange gains on the private equity funds.

The increase in dividends and the exchange gains drove the growth of gross operating profit, which increased by 25.4% compared with the same period last year, despite the negative fair value performance of trading investments, mutual funds and private equity funds.

As regards the performances of the industrial portfolio companies, the first nine months of 2022 were influenced by the macroeconomic context, namely a contraction of the economy, and in particular by the general increase in the price of raw materials and its effects on costs, which are rising. Contingent factors also affected the performance of certain industrial portfolio companies: Italgen's output was affected by the ongoing drought; AGN Energia compares with a 2021 that benefited from the positive impact of the hedges made on the purchase cost of LPG; Tecnica Group's accounts do not yet reflect its excellent order backlog, which is showing significant growth compared with the previous year.

Looking at the pro-forma aggregate for the first nine months 2022:

• The revenue of the industrial portfolio companies amounted to 1,285.4 million euro, up 22% compared with the first nine months of the previous year. With the exception of the growth of AGN Energia and Italgen, which is attributable to contingent factors (growth in energy costs and pass- through revenues, respectively), with business volumes decreasing compared to the previous year, the growth of non-energy portfolio companies amounted to 14.3%.