Intek S p A : The BoD of Intek Group SpA has approved the draft financial stamements for the year 2021

Registered office: 20121 Milan (MI) - Foro Buonaparte 44

Share capital Euro 335.069.387,15, fully paid-up Tax Code and Milan Companies Register no. 00931330583www.itkgroup.it

PRESS RELEASE

THE BOARD OF DIRECTORS OF INTEK GROUP SPA HAS APPROVED THE DRAFT SEPARATE AND

CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2021.

• - Profit for the year of Euro 65.3 million (profit of Euro 3.3 million in 20201). This profit, resulting from fair value measurement, will be allocated to the legal reserve as well as an unavailable reserve pursuant to article 6 of Italian Legislative Decree 38/2005.

• - Equity of Euro 551.7 million (Euro 503.9 million as at 31 December 2020).

• - Negative Net Financial Position of Euro 93.6 million (negative by Euro 67.4 million as at 31 December 2020).

• - The amounts in the separate and consolidated financial statements for the year 2021 are identical, as there are no subsidiaries consolidated line-by-line.

•  PERFORMANCE OF PRIMARY INVESTMENTS:

  • - For KME SE, in the course of 2021 and the early months of 2022, significant transactions were carried out in order to implement the KME group's strategy of concentrating on copper and copper alloy rolled products, in which the group is the European leader and intends to focus its energy and future growth, given the appealing growth rates expected for the main reference markets. The cash in from M&A transactions allowed the early partial repayment, by the end of April 2022, for Euro 190 million of the KME SE Bond maturing in 2023; as of today, Euro 175 million of the early repayment has been already completed.

    In 2021, the KME group's results showed significant growth: revenues from sales amounting to Euro 2,172.5 million (+14.4% compared to 2020); revenues from sales net of raw materials equal to Euro 537.1 million (+13.8% compared to 2020); EBITDA of Euro 95.5 million (+27.2% compared to 2020).

  • - Culti Milano SpA continues to grow in its reference markets, particularly in Italy and Asia, including through the launch of a joint venture in China. In 2021, the Culti Milano group indeed reached, at consolidated level, revenue of Euro 21.0 million (+55.5% compared to 2020) and EBITDA of Euro 5.0 million (+56.2% compared to 2020).

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Milan, 31 March 2022 - The Board of Directors of Intek Group SpA, a diversified investment holding company, today approved the parent company's draft financial statements as at 31 December 2021, the consolidated financial statements and the Report on corporate governance and ownership structure prepared pursuant to article 123-bis of Italy's Consolidated Law on Finance (TUF, Testo Unico sulla Finanza) and the Report on Remuneration prepared pursuant to article 123-ter of the TUF.

1

Certain data relating to 2020 were restated to retroactively consider the effects of an update of the "Fair vale measurement policy" applied to "Investments in equity interests and fund units". Specifically, this amendment relates to the elimination of the provision according to which no changes in the carrying amount of investments are recognised when the result of their valuation was different, in absolute value, from the carrying amount prior to the valuation by less than 1.5%. This elimination entailed a reduction of Euro 3.2 million on the result for the year 2020 and the value of shareholders' equity as at 31 December 2020, with reference to both the separate and consolidated financial statements.

For more details, please refer to the press release of 18 February.

The Annual Financial Report as at 31 December 2021, inclusive of the above-mentioned reports as well as the reports of the Independent Auditors and the Board of Statutory Auditors, will be made public within legal terms and will be available at the registered office as well as on the websitewww.itkgroup.it and the authorised storage system "eMarket STORAGE" (www.emarketstorage.com).

* * *

Most significant events occurred in 2021 and the first quarter of 2022

The main events characterising the operations of Intek and its investees in 2021 and in the early months of 2022 are described below.

• (i) Enhancement activities in the copper industry

  In this area, in the course of 2021 and the early months of 2022, significant transactions were carried out in order to implement the KME group's strategy of concentrating on copper and copper alloy rolled products, in which the group is the European leader and intends to focus its energy and future growth, given the appealing growth rates expected for the main reference markets.

  In January 2022, the agreement was executed with Paragon Partners GmbH ("Paragon"), a German private equity fund, for the transfer of control of the Special Products business. The agreement was the base for the creation of a company 55% held by Paragon and 45% by KME, to which the above-mentioned business was transferred. This transaction enabled KME to benefit from the contribution of financial resources for roughly Euro 200 million, after the repayment of around Euro 20 million in intragroup loans, relating to working capital, and after granting a Euro 32 million loan which will be repaid by the newly-established company.

  An additional disposal was completed in February 2022 with the sale of the Wires business, which was added to KME portfolio following the acquisition of MKM. This transaction resulted in a cash in of approximately Euro 20 million plus the value of the metal stock.

  With respect to the Copper business, a production integration operation was carried out in June 2021 with S.A. Eredi Gnutti Metalli SpA ("EGM"), which resulted in the transfer to KME Italy SpA of the rolled business of EGM. The consideration of Euro 21.8 million was reinvested in full by EGM in the subscription of a KME Italy share capital increase, corresponding to 16% post-money. The transaction allowed to pool know-how, production capacity, distribution channels and logistics coverage, with a view to generating operating efficiencies and boosting market competitiveness while providing the highest quality service to customers.

  Additionally, also relating the Copper sector, the final contract was signed in February 2022 for the acquisition of part of the flat rolled products production segment of Aurubis AG. The perimeter of the transaction includes the FRP plant in Zutphen (Netherlands) and the slitting centres in Birmingham (United Kingdom), Dolný Kubín (Slovakia) and Mortara (Italy). This contract was finalised after the term sheet signed in August 2021, while the closing of the transaction, subject to several conditions precedent (including approval by the competent antitrust supervisory authorities), is expected during the summer 2022.

  The cash in from the M&A transactions allowed the early partial redemption, by the end of April 2022, for Euro 190 million of the KME SE Bond for a total of Euro 300 million maturing in 2023; as of today, Euro 175 million of the early repayment has been already completed.

  Revenues from sales amounted to Euro 2,172.5 million (+14.4% compared to 2020), revenues from sales net of raw materials equalled Euro 537.1 million (+13.8% compared to 2020) and EBITDA came to Euro 95.5 million (+27.2% compared to 2020).

• (ii) Culti Milano SpA

  In the course of 2021, Culti Milano and its subsidiaries marked significant commercial growth supported by remarkable income performance.

  In 2021, the Culti Milano group indeed reached, at consolidated level, revenue of Euro 21.0 million (Euro 13.5 million in 2020) and EBITDA of Euro 5.0 million (Euro 3.2 million in 2020).

  The Asian markets also contributed to these results, thanks to the operational launch of the joint venture established in Hong Kong with a local partner and the subsidiary in Shanghai, as well as

increased multichannel presence (the TMALL store, opened at the end of 2020, recorded more than 35 thousand purchases).

(iii) Extraordinary finance transactions

On 28 June 2021, "Intek Group S.p.A. 2021-2024 Warrants" were issued and assigned free of charge to all ordinary and savings shareholders, with a ratio of 0.4 warrant for every share held. Each warrant allows the subscription by 28 June 2024 of one Intek Group ordinary share at the fixed exercise price of Euro 0.40. A total of 172.9 million warrants were assigned which, if they are all exercised, will result in a share capital increase of Euro 69.2 million.

The voluntary total public exchange offer on Intek Group savings shares took place from 30 June to 23 July 2021. A total of 33.8 million savings shares were exchanged (equal to 67.41% of the share capital subject to the offer), all of which were subsequently cancelled. In exchange, 785,417 "Intek Group S.p.A. 2020 - 2025" Bonds were issued as consideration, for a total value of Euro 17.0 million.

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Summary of the Group's corporate structure at 31 December 2021

Intek Group held the following principal shareholdings as at 31 December 2021:

•  KME SE: head of a leading global group in the production and marketing of semi-finished copper and copper-alloy products, which is concentrating its activities in the Copper business, primarily rolled products, after the transfer of 55% of the Special Products business finalised in January 2022;

•  Culti Milano SpA: listed on the Euronext Growth Milan (formerly AIM Italia) market, increasingly geared towards personal well-being, aside from the consolidation of its traditional business in the environmental fragrance segment;

•  Intek Investimenti SpA: the corporate vehicle in which the investment and private equity activities of the Intek Group are now concentrated, with diversified and primarily non-controlling investments;

•  Ducati Energia SpA: non-controlling equity investment of Intek Group (6.77% of the share capital through ownership of all special shares issued) active in various, appealing business

segments (condensers, industrial power factor correction, railway signalling, measurement tools, sustainable mobility, Intelligent Transportation Systems).

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Intek Group SpA financial highlights

Intek Group's financial highlights as at 31 December 2021, compared to 31 December 2020, can be summarised as follows:

Condensed separate statement of financial position

(in thousands of Euro)

31 Dec 2021

31 Dec 2020 (**)

KME	90.43%	510,875	90.09%
Culti Milano	4.49%	27,309	4.82%
Ducati Energia	2.60%	15,931	2.81%
Intek Investimenti	1.86%	10,241	1.81%
I2 Capital Partners SGR	0.00%	(104)	-0.02%
Other investments	0.31%	2,165	0.38%
Other assets/liabilities	0.31%	673	0.12%
Net investments	643,119	100.00%	567,090	100.00%
Outstanding bonds (*)	95,988	78,288
Net cash	(4,572)	(15,128)
Holding company net financial debt	91,416	14.21%	63,160	11.14%
Total shareholders' equity	551,703	85.79%	503,930	88.86%

581,546

28,904

16,700

11,984 -

1,995

1,990

Note: -	In the table, investments are shown net of financial receivable/payable transactions outstanding with the Intek
Group.
-	(*) including accruing interests.
-	(**) restated data - see footnote 1.

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Investments

The Net investments held by the Company amounted to Euro 643.1 million as at 31 December 2021 (Euro 567.1 million at the end of 2020), of which around 90% concentrated in KME SE.

This increase is linked to the positive effects of fair value measurements, particularly of KME SE (Euro 68.8 million) and Culti Milano (Euro 1.6 million).

Shareholders' equity

The holding company's shareholders' equity amounted to Euro 551.7 million, compared to Euro 503.9

million as at 31 December 2020; this change was caused, on the positive side, by the result for the year 2021 (Euro 65.3 million) and in the opposite direction by the overall effects of the voluntary public exchange offer on savings shares (Euro 17.9 million reduction in shareholders' equity).

Equity per share was Euro 1.38 (Euro 1.17 at the end of December 2020).

Financial management

Net financial debt to third parties (excluding intra-group loans and lease liabilities) totalled Euro 91.4

million as at 31 December 2021, compared to Euro 63.2 million as at 31 December 2020. The increase is primarily linked to the issue of "Intek Group S.p.A. 2020-2025" Bond as a result of the public exchange offer on the savings shares.

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Main Intek Group subsidiaries

KME

The investment in the Copper sector refers to the German subsidiary KME SE, and, as is well-known, for years now has been the Intek Group's core business.

31 Dec 2021	31 Dec 2020
KME SE investment	578,300	509,500
KME Germany Bet. GmbH investment	1,700	1,400
Other	1,546	(25)
Total KME	581,546	510,875

(in thousands of Euro)

The value of the equity investments increased due only to the effects of their fair value measurement.

The KME group boasts of a vast range of copper and copper-alloy products, as well as a particularly articulated and complex global organisational and production structure.

In the course of 2021, the KME Group was committed to several strategic transactions, the majority of which have already been completed, to both create and consolidate several businesses in a sector which for some years now has been affected by a process of rationalisation and concentration of the various markets undertaken by major global players.

In particular, the KME group's strategy is to concentrate on copper and copper-alloy rolled products, in which the group is the European leader and intends to focus its energy and future growth, given the appealing growth rates expected for the main reference markets. Another fundamental objective of the group is progressive deleveraging.

In this context, the KME Group has carried out both sale and purchase transactions, such as in the case of:

• - the acquisition of MKM, already in 2019, and the laminates business of S.A. Eredi Gnutti Metalli, concluded in June 2021 - both in the Copper business;

• - the transfer of 55% of the Special Products business to Paragon Partners GmbH ("Paragon"), a German private equity fund which manages roughly Euro 1.2 billion in assets, the closing of which took place in January 2022. This agreement, was the base for the creation of a new company 55% held by Paragon and 45% by KME, to which the business was transferred, enables KME to participate in the future value creation of the Special Products business;

• - the sale, completed in February 2022, of the Wires business, added to KME portfolio following the acquisition of MKM, which in 2021 recorded a turnover of Euro 87 million and employing around 190 people in the Hettstedt facility;

• - lastly, also in February 2022, was signed in the contract for the acquisition of part of the flat rolled products production segment of Aurubis AG. The perimeter of the transaction, which is expected to be completed during the summer 2022 (subject to the fulfilment of several conditions precedent), includes the FRP plant in Zutphen (Netherlands) and the slitting centres in Birmingham (United Kingdom), Dolný Kubín (Slovakia) and Mortara (Italy), for total turnover of roughly Euro 280 million and 360 employees.

At the end of February 2022, KME SE, as consequence of the M&A transactions mentioned above, decided to proceed, within the end of April 2022, with the early redemption for Euro 190 million of the Euro 300 million Bond maturing in 2023; as of today, Euro 175 million of the early repayment has been already completed.