IVS S A : March 31st, 2021 – IVS Group S.A. – Report on Corporate Governance

REPORT ON CORPORATE GOVERNANCE AND

OWNERSHIP STRUCTURE

IVS GROUP S.A.

REPORT ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE

pursuant to Article 123-bis of Italian Law n. 58/1998 (TUF)

and Article 68-ter of Luxembourg Law n. 12/2002

related to the

financial year ended on December 31st 2020

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REPORT ON CORPORATE GOVERNANCE AND

OWNERSHIP STRUCTURE

DEFINITIONS .................................................................................................................................................................	4
1. COMPANY PROFILE ..............................................................................................................................................	8

2. INFORMATION ON OWNERSHIP STRUCTURE at 31 December 2020 (in accordance with art. 123-bis,

paragraph 1, TUF). ..........................................................................................................................................................	8
a)	Capital structure (in accordance with art. 123-bis, paragraph 1, clause a), TUF) ..............................................	8
Capital structure:................................................................................................................................................................	8
b)	Restrictions on the transfer of securities (in accordance with art. 123-bis, paragraph 1, clause b), TUF) ......	9
c)	Significant holdings (in accordance with art. 123-bis, paragraph 1, clause c) TUF). ........................................	9
d)	Securities with special control rights (in accordance with art. 123-bis, paragraph 1, clause d) TUF) .................	10

1. Employee share scheme: mechanism for the exercise of voting rights (in accordance with art. 123-bis,

paragraph 1, clause e), TUF) ..........................................................................................................................................	10
f)	Restrictions on voting rights (in accordance with art. 123-bis, paragraph 1, clause f) TUF) ...........................	10
g)	Shareholders agreements (in accordance with art. 123-bis, paragraph 1, clause g) TUF)...............................	11

1. "Change of control" clauses (in accordance with art. 123-bis, paragraph 1, clause h), TUF) and statutory

provisions on takeover bids (in accordance with articles 104, paragraph 1-ter and 104-bis, paragraph 1) ............

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1. Delegated powers regarding share capital increases and authorization to the buy-back (in accordance with

art. 123-bis, paragraph 1, clause m), TUF) ...................................................................................................................	12
l) Management and coordination activity (in accordance with art. 2497 et seq Italian Civil Code) ......................	12
3. COMPLIANCE (in accordance with art. 123-bis, paragraph 2, clause a) TUF) ......................................................	13
4.	BOARD OF DIRECTORS .....................................................................................................................................	13
4.1.		Appointment and replacement (in accordance with art. 123-bis, paragraph 1, clause l), TUF)............................	13
4.2.		Composition (in accordance with art. 123-bis, paragraph 2, clause d) and d-bis), TUF) ............................	14
4.3.		Role of the Board of Directors (in accordance with art. 123-bis, paragraph 2, clause d) TUF) ....................	20
4.4.		Delegated bodies..................................................................................................................................................	21
a)		Executive Directors..............................................................................................................................................	22
b)		Chairman of the Board of Directors ...................................................................................................................	22
c)	Chief Executive Officers..........................................................................................................................................	22
d)		Chief Financial Officer .......................................................................................................................................	23
4.5.		Other Executive Directors ...................................................................................................................................	23
4.6.		Non-Executive Directors.....................................................................................................................................	23
4.6.1.	Independent Directors .....................................................................................................................................	23
5. TREATMENT OF CORPORATE INFORMATION .........................................................................................	24
5.1.		Internal management and disclosure of privileged information ......................................................................	24
5.2.		Internal Dealing.....................................................................................................................................................	24
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REPORT ON CORPORATE GOVERNANCE AND

OWNERSHIP STRUCTURE

6. INTERNAL COMMITTEES OF THE BOARD (in accordance with art. 123-bis, paragraph 2, clause d),

TUF) .................................................................................................................................................................................

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7. APPOINTMENT AND REMUNERATION COMMITTEE (in accordance with art. 123-bis, paragraph 2,

clause d), TUF). ................................................................................................................................................................	25
8.	REMUNERATION OF DIRECTORS .................................................................................................................	26
9.	INTERNAL CONTROL COMMITTEE .............................................................................................................	27
10.	THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM .....................................................	28
10.1	Director in charge of the internal control and risk management system .....................................................	29
10.2.	Internal audit manager and integrated system manager...................................................................................	29
10.3.	Organization, Management and Control Model in accordance with Legislative Decree No. 231/2001 .........	31
10.4.	Audit firm...........................................................................................................................................................	32
10.5	Manager in charge of drafting the Company's financial reports......................................................................	32

10.6 Guidelines for the internal control and risk management system (coordination between the parties

involved in the internal control and risk management system) ...................................................................................	32
11.	DIRECTORS' INTERESTS AND TRANSACTIONS WITH RELATED PARTIES ................................	33
12.	APPOINTMENT OF STATUTORY AUDITORS..............................................................................................	34

13. COMPOSITION AND FUNCTIONING OF THE BOARD OF STATUTORY AUDITORS (pursuant to

Article 123-bis, paragraph 2, clause d), of the TUF) .........................................................................................................	34
14.	RELATIONS WITH THE SHAREHOLDERS ..................................................................................................	34
15.	SHAREHOLDERS' MEETINGS.......................................................................................................................	34

16. ADDITIONAL CORPORATE GOVERNANCE PRACTICES (in accordance with article 123-bis,

paragraph 2, clause a) TUF)...........................................................................................................................................	36
17. CHANGES SINCE THE END OF THE FINANCIAL YEAR. .....................................................................	36

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REPORT ON CORPORATE GOVERNANCE AND

OWNERSHIP STRUCTURE

FOREWORD

The Company, having its registered office in the Grand Duchy of Luxembourg, is organized in compliance with applicable Luxembourg laws and regulations and governance practices pertaining to the Luxembourg legal system.

Furthermore, as the Company's stock are listed on the STAR segment of MTA (Mercato Telematico Azionario) of the Italian Stock Exchange Market organized and managed by Borsa Italiana S.p.A., it also subject to the Italian law as regards certain corporate disclosure obligations.

Legislation on corporate information transposes the relevant EU directives and therefore uniform in the various Member States. For this reason, in drafting this Report the Company has chosen to refer to both the Italian and the Luxembourg transposing laws as the reference regulatory sources.

Moreover, the Company is subject to the Borsa Italiana Rules and has chosen to abide by the Borsa Italiana Code prepared and approved by the Corporate Governance Committee set up by company's associations (ABI, ANIA, Assonime, Confindustria), by professional investors (Assogestioni) and by Borsa Italiana S.p.A.

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REPORT ON CORPORATE GOVERNANCE AND

OWNERSHIP STRUCTURE

DEFINITIONS

In this document, the following expressions have the meaning indicated below:

• "Annual General Meeting": the general meeting of Shareholders to be held on annual basis within six (6) months after the end of the precedent financial year.
• "Appointment and Remuneration Committee": the Company's committee in charge of the assignments ruled by the Borsa Italiana Code for both appointments and remuneration committees.
• "Articles of Association": the Company's Articles of Association approved upon its incorporation and subsequent amendments.
• "Beneficiaries": the persons designated as beneficiaries of the Incentive Plan.
• "Board of Directors" or "Board": the Company's Board of Directors.
• "Borsa Italiana": the Italian Stock Exchange Market organized and managed by Borsa Italiana S.p.A.
• "Borsa Italiana Code": the Corporate Governance Code for listed companies approved on March 14th 2006 by the Corporate Governance Committee as amended last in January 2020 and promoted by Borsa Italiana S.p.A., ABI, Ania, Assogestioni, Assonime and Confindustria and subsequent amendments.
• "Borsa Italiana Instructions": the Instructions to the Rules of the Markets organized and managed by Borsa Italiana S.p.A. and subsequent amendments.
• "Borsa Italiana Rules": the Rules of the Markets organized and managed by Borsa Italiana S.p.A. and subsequent amendments.
• "Chairman": the Chairman of the Board of Directors.
• "Chief Executive Officer" or "CEO": the director who, because of the delegations of powers received and the actual exercise of the latters, is the main responsible officer for the management of the Company.
• "Chief Financial Officer" or "CFO": the manager of the Company in charge of overseeing the management of financial activities and preparing financial reports.
• "Committees": jointly, the Appointment and Remuneration Committee and the Internal Control Committee.
• "Company" or "IVS" or the "Issuer": IVS Group S.A.
• "Consob" or "Commissione Nazionale per le Società e la Borsa": the Italian regulatory authority responsible for the stock exchange financial markets.
• "Consob Regulation on Issuers": Consob Regulation n. 11971 of May 14th 1999, implementing the provisions on issuers of TUF, and subsequent amendments.

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