Mittel S p A : approves the consolidated half-year financial statements at 30 june 2023

Registered office in Milan - Via Borromei no. 5

Share Capital € 87,907,017 fully paid-in

Business Register of Milan no. 00742640154

www.mittel.it

PRESS RELEASE

BOARD OF DIRECTORS APPROVES CONSOLIDATED HALF-YEARLY REPORT AS AT 30 JUNE 2023

GROUP NET PROFIT INCREASED TO EUR 45.4 MILLION DUE TO THE CAPITAL GAIN REALISED ON THE SALE OF GRUPPO ZAFFIRO AND THE POSITIVE CONTRIBUTION OF INVESTEE COMPANIES

REVERSAL OF THE CONSOLIDATED NET FINANCIAL POSITION, POSITIVE FOR EUR 80 MILLION

GROUP SHAREHOLDERS' EQUITY INCREASED TO EUR 254.4 MILLION (EUR 3.13 PER SHARE)

• Group net profit of EUR 45.4 million, thanks to the important result achieved with the completion of the sale of the Zaffiro Group, for a consideration of EUR 42 million, and the robust performance in the half-year period of the Group's other investment verticals. The Group's net profit, net of the Zaffiro transaction, would have amounted to EUR 3.6 million.
• Consolidated revenue of EUR 67.3 million (EUR 73.2 million as at 30 June 2022), thanks to the solid performance of the industrial subsidiaries and in particular of the companies in the Bathroom Furnishings sector, which contributed to the consolidated data with revenue of EUR 38.0 million (EUR 40.5 million as at 30 June 2022), and the Automotive sector, which recorded revenue of EUR 22.5 million (EUR 20.6 million as at 30 June 2022).
• Operating EBITDA for the period amounts to EUR 6.5 million (EUR 8.0 million as at 30 June 2022), with continued high margins in the Bathroom Furnishings sector, which contributes EUR
• 1. million to the margin (EUR 8.8 million as at 30 June 2022), and with further recovery in the Automotive sector, which records EBITDA of EUR 2.6 million (EUR 2.4 million as at 30 June 2022).
• Group shareholders' equity of EUR 254.4 million (EUR 3.13 per share), a net increase compared to Euro 219.6 million as at 31 December 2022 due to the net effect of the profit for the period and the dividend of EUR 10 million (EUR 0.12 per share) distributed in the half-year.
• Net financial position of Mittel and the holding system positive for EUR 77.4 million, a sharp increase compared to EUR 53.3 million as of 31 December 2022. Consolidated net financial position (excluding financial liabilities as per IFRS 16) is positive for EUR 79.9 million, a strong improvement compared to EUR 6.4 million as at 31 December 2022, which also incorporates the significant positive net financial position of the Bathroom Furnishings segment. Accounting consolidated net financial position (including effect of IFRS 16 liabilities) is positive for EUR
• 1. million, compared to EUR 271.0 million recorded as at 31 December 2022 (which incorporated the significant IFRS 16 liabilities of the RSA segment).
• In June, an investment was made in a real estate project in Milan/Via Cavriana, in a high- potential area characterised by extensive green areas and urban gardens, and in July further expansion of the investment portfolio in diversified sectors, with the purchase of Gruppo Finestre, specialised in the production and distribution of windows and doors; both investments fit perfectly into the Group's sustainable development plans.
• The Group's results over the next few months, thanks also to the contribution of the new business segment to the Group's earnings results, should confirm, consistent with the difficult market environment, the important growth path achieved to date as a dynamic and efficient industrial holding company, with a strong focus on further enhancing the significant investments made in recent years and on further development strategies, and with the goal of creating sustainable long-term value for shareholders and all stakeholders.

*** *** ***

Milan, 27th September 2023 - The Board of Directors of Mittel S.p.A., which met today under the chairmanship of Mr. Marco Giovanni Colacicco, examined and approved the Consolidated Half-Yearly Financial Report as at 30 June 2023.

Directors' report on Operations

The first half of 2023 marked a further fundamental step in the Group's growth path, i.e. the completion of the sale of the Zaffiro Group, which took place on 28 June 2023. Exit from the Zaffiro Group took place upon completion of a successful build-up process, which was carried out within the nursing home sector during the timeframe in which Mittel held the investment. This process has led the investee to establish itself as one of the most important operators in the sector at national level, moving from the original 8 facilities managed (for about 900 beds) to the current 31 facilities (for about 2,600 beds).

The sale resulted in a gross capital gain (compared to the value of the original investment) of EUR 28.5 million (amount equal to the difference between the sale price of EUR 42 million and the purchase value of the equity interest equal to EUR 13.5 million) and the recognition in the consolidated financial statements of a positive impact on profit attributable to the Group of EUR 45.4 million. At the same time as the aforementioned sale, Mittel also collected from the Zaffiro Group an amount of EUR 26.6 million, by way of repayment of principal and interest on shareholder loans previously granted to it for a principal amount of EUR 25 million. Therefore, the overall transaction led to the collection of financial resources of EUR 68.6 million, in addition to the elimination, at the level of the consolidated financial statements, of the extremely significant negative contribution of the net financial position of the Zaffiro Group, equal to EUR

271.5 million as at 31 December 2022 (amount significantly affected by the application of IFRS 16, equal to EUR 243.6 million). The overall positive impact on the consolidated accounting net financial position was therefore EUR 340.1 million.

With regard to the general market context in which the Mittel Group operated, in the first half of the year the restrictive monetary policy measures implemented by the monetary authorities as early as 2022 continued, against a further intensification of inflationary dynamics recorded after the outbreak of the Russian-Ukrainian conflict. The significant increase in interest rates continued throughout the reporting period and also after the reporting date, with inevitable impacts on the trend in industrial production and consumption. However, the solidity consistently demonstrated in recent years in the industrial sectors in which the Group operates (Bathroom Furnishings, Automotive and Clothing) has allowed a solid financial and operational stability, limiting, on the whole, the negative impacts on the consolidated economic results achieved (net of significant positive contribution of the deconsolidation of the Zaffiro Group) in the half- year ended 30 June 2023.

In particular, the Bathroom Furnishings sector recorded a total turnover of EUR 38.0 million in the half of the year (EUR 40.5 million in the comparison period), maintaining high company margins (IFRS 16 net EBITDA of EUR 7.4 million, compared to EUR 8.8 million in the comparison period) and confirming the high cash generation capacity. After an extremely positive first quarter in terms of turnover, the companies recorded a slowdown in the second quarter. In the particular market context resulting from the inflationary dynamics of the last period and the consequent monetary policy decisions, in anticipation of the general economic slowdown predicted for the coming quarters, it is important to highlight the production and commercial synergies that the companies are continuing to achieve. Their impact will continue to grow in the near future and the process has now made it possible to configure the investees in the sector as an integrated Group able to offer diversified and complementary products on different customer segments and on different geographic markets. These aspects, together with the level of industrial, economic and financial solidity achieved with the continuous business growth recorded in recent years thanks to Mittel's investment strategy, should be suitable to limit the negative impacts of the current macroeconomic context in the coming quarters, confirming the important ability to create value in this vertical, demonstrated in recent years and attained through the active and direct management of the investment and the strong commitment of an industrial nature.

In the first half of 2023, the Automotive sector confirmed the operational recovery recorded in 2022 (after a very difficult year 2021 and despite the impacts of the outbreak of the Russian-Ukrainian conflict). The investee IMC achieved a turnover of EUR 22.5 million (compared to EUR 20.6 million in the comparison half-year and to EUR 38.6 million for the entire year 2022 and EUR 29.8 million for the entire year 2021), thanks to the constant business attention paid to the opportunities that arise in the current market context, also consequently to IMC's high reliability compared to its sector competitors, in terms of industrial

capacity and economic and financial solidity (also made possible by its being part of the Mittel Group). EBITDA before IFRS 16 amounted to EUR 2.6 million, compared to EUR 2.4 million in the comparison half-year, EUR 3.6 million for the entire 2022 and EUR 1.4 million for the entire 2021.

The Clothing sector recorded a turnover of EUR 5.8 million as at 30 June 2023 (in line with the comparison period) and a negative EBITDA before IFRS 16 of EUR 0.7 million (negative EUR 0.4 million in the comparison period). As is known, the sector investee will generate its profit margins in the second half of the year, given the seasonal nature of the Ciesse Piumini brand, and also thanks to the contribution to the margins of the first collection under the new management of the Jeckerson brand, which until now has only contributed through the royalties accrued to licensees and the sales made by the two outlets used for the valuation of the inventories acquired together with the brand.

With regard to the non-core assets in the portfolio, after the steady results already achieved in the process of realisation of these assets in previous years (including the last important collections in the real estate sector in 2022, including those relating to the Regina Teodolinda-Como and Metauro-Milano contracts), no particularly significant collections were recorded in the first half of the year, which could, on the other hand, occur in the second half of the year, depending on the possible developments in certain important credit and equity items held.

On the other hand, it should be noted that during the half year, Mittel management identified an interesting investment opportunity in the real estate sector, located in Milan, in Via Cavriana, which led to the purchase by Mittel of 55% of the special purpose vehicle to which the asset to be developed belongs, for an initial investment pertaining to Mittel of EUR 7.7 million. This is an ambitious project (5 buildings for 12,500 square meters of commercial area) in an area with high potential, for the construction of a new and well-structured residential complex surrounded by greenery, in an area subject to intense redevelopment and featuring extensive green areas and urban orchards. The project therefore fits perfectly into the Group's sustainable development plans.

Lastly, with regard to the holding system, after the completion in recent years of the process of reducing structural costs both of an operational nature (personnel, consultancy, etc.) and of a financial nature (with the last partial early repayment of the 2017-2023 bond made in July 2021, following which there was a residual debt of EUR 15 million, subject to final repayment in July 2023), the sale of the Zaffiro Group marked a further substantial step in the comprehensive Mittel Group's turnaround process. This will make it possible in the future to continue with determination in the process of creating value and increasing the size of the Group, both by supporting the growth of existing investment verticals and by launching targeted investments in new verticals in which management can express better skills.

The significant financial resources collected through the sale transaction, which were added to those already available at the holding company level, immediately made it possible to make a new investment, completed after the end of the half-year. In July 2023, in fact, Mittel acquired the company Gruppo Finestre, thus accessing the sector of production and distribution of windows and doors with high quality technical performance. With this transaction, Mittel has further expanded its portfolio of investments in diversified sectors, continuing along the path of investing in Italian SMEs of excellence operating in global markets, aimed at the creation of sustainable long-term value for all shareholders and other stakeholder categories.

Group performance

The Group net profit for the year was EUR 45.4 million, incorporating the effects of the completion of the sale of the Zaffiro Group, which had a total impact on profit of EUR 41.8 million, deriving from: (i) consolidation of the investee until the date of sale, with a loss pertaining to the Group of EUR 2.5 million;

1. the profit from deconsolidation of EUR 47.9 million (the net effect of these two direct components is therefore EUR 45.4 million); (iii) the indirect effect due to the accrual of the variable remuneration payable to the management of Mittel, as envisaged by the remuneration policy in force, amounting to EUR 2.9 million; (iv) the additional indirect effect due to the accessory costs, of a tax and social security nature, related to the previous point, amounting to EUR 0.7 million.

Net of the important result achieved in the half-year with the completion of the sale of the Zaffiro Group, the Group's profit is EUR 3.6 million and confirms the robust performance, also in the first half of 2023, of the profit margins of core assets, attributable to the other investment verticals developed in recent years and present in the Group as at 30 June 2023 (Bathroom furnishings, Automotive and Clothing).

This result benefits above all from the important positive contribution of the Bathroom Furnishings sector, which has an EBITDA before IFRS 16 of EUR 7.4 million (EUR 8.8 million in the comparative half-year), in addition to the positive performance of the Automotive sector, which shows an EBITDA for the sector before IFRS 16 of EUR 2.6 million (EUR 2.4 million in the comparison period). On the other hand, the margin of the Clothing sector is not significant, which contributes with a negative EUR 0.7 million EBITDA before IFRS 16 (negative EUR 0.4 million in the comparison period) and which, as is known, will generate its profit margins in the second half of the year, given the seasonality of the investee Sport Fashion Service.

Consolidated revenues amounted to EUR 67.3 million (EUR 73.2 million in the comparison period, net of the contribution of the Zaffiro Group), thanks to the contribution of the industrial investees and in particular of the Bathroom Furnishings companies, which contribute to the consolidated data with a turnover of EUR

38.0 million (EUR 40.5 million in the comparison period), and the Automotive sector, which had a turnover of EUR 22.5 million (EUR 20.6 million in the comparison period).

Operating EBITDA for the period amounted to EUR 6.5 million (compared to EUR 8.0 million recorded in the comparison period net of the Zaffiro Group). The accounting EBITDA (which, however, does not incorporate the reversal of the lease payments reversed pursuant to IFRS 16, equal to EUR 1.7 million, and the correct allocation to the result from the disposal of the Zaffiro Group of the costs relating to the variable remuneration accrued by Mittel management as a result of the disposal, amounting to EUR 2.9 million, and the related tax and social security charges, amounting to EUR 0.7 million), amounting to EUR 4.6 million (EUR 9.6 million in the comparison period, net of the Zaffiro Group contribution).

The Group equity as at 30 June 2023 amounted to EUR 254.4 million, an increase of EUR 34.8 million compared to EUR 219.6 million as at 31 December 2022. The net increase is mainly explained by the result for the period (including the important contribution of the deconsolidation of the Zaffiro Group), equal to EUR 45.4 million, net of the dividend distributed by Mittel at the beginning of the half-year, equal to EUR 10 million.

The net operating financial position of Mittel and the holding system, excluding the contribution of industrial investees to IFRS 16 liabilities and including bridge loans to industrial investee companies, was a positive EUR 77,4 million (a positive EUR 53.3 million as at 31 December 2022). The further clear improvement is mainly due to the completion of the sale of the Zaffiro Group, with the consequent collection of the equity component (equal to EUR 42 million, to which the actual translation into cash of the bridge loan component previously granted by Mittel is to be added), already included in the operational NFP of the original holding system for EUR 26 million), only partially offset by the cash absorption mainly related to the dividend distributed at the beginning of the half-year by Mittel, equal to EUR 10 million, and the investment of EUR 7.7 million made in June in the real estate sector, with the purchase of a majority stake in an important real estate initiative in Milan, which will be developed starting in the next few months.

The consolidated net financial position, excluding financial payables recognised pursuant to IFRS 16 in relation to rights of use on lease contracts, became significantly positive in the half-year, standing at EUR

79.9 million (negative for EUR 6.4 million as at 31 December 2022). During the period, the significant financial exposure of the Nursing Home sector was eliminated, subject to deconsolidation at the end of the half-year, which frees the Group from a significant financial exposure and which allows the Group to have, in the current market context characterised by strong criticalities in terms of interest rates and availability of funding sources, significant financial resources to be allocated to new strategic investments.

Lastly, the consolidated accounting net financial position was positive for EUR 60.7 million, compared to the negative EUR 271.0 million recorded as at 31 December 2022, incorporating, in addition to the factors described above, the deconsolidation of the IFRS 16 liabilities of the Nursing Home sector that, as is known, were related to the long-term lease agreements that characterise the sector in question.

Financial highlights of the Group

The economic, equity and financial tables below are shown in reclassified form with respect to those contained in subsequent paragraphs, in order to highlight certain intermediate results and the equity and financial aggregates deemed most significant for understanding the Group's operating performance. These amounts, even though not provided for by IFRS/IAS, are supplied in compliance with the indications in Consob Communication no. 6064293 of 28 July 2006 and CESR Recommendation dated 3 November 2005 (CESR/05-178b).

This report contains several financial ratios, deriving from the financial statements, which provide an overview of the Group's economic, equity and financial performance. Details of economic items not taken directly from the financial statements, and comments and evaluations, help to better qualify the trends in the different values.

In relation to the sale of the Zaffiro Group, which took place at the end of the half-year, the income statement shows in a single item, relating to the result of discontinued operations, the contribution of these activities to the consolidated net result. The item includes both the result for the period up to the date of sale, and the result deriving from the deconsolidation. As required by IFRS 5, the contribution to the consolidated result of discontinued operations in the comparison period was also shown in the same item. Therefore, the income statement for the period of comparison differs, due to this reclassification, from the original one published.

Main economic figures of the Group

(Thousands of Euro)	30.06.2023		30.06.2022 (*)
Revenue and other income	71,147		76,652
Increases (decreases) in inventories	1,949		405
Net revenue	73,096		77,057
Purchases, provision of services, sundry costs	(51,580)		(52,048)
Personnel costs	(16,938)		(15,438)
Operating costs	(68,519)		(67,486)
Operating margin (EBITDA)	4,578		9,571
Amortisation/depreciation, allocations and adjustments to	(4,658)		(4,250)
non-current assets
Share of income (loss) of investments	(474)		-
Operating result (EBIT)	(554)		5,321
Profit (loss) from financial management	633	(588)
Result of management and valuation of financial assets and	(105)		(1,611)
receivables
Profit (loss) from trading of financial assets	-		(72)
Profit (loss) before taxes	(25)		3,050
Taxes	(424)		(405)
Profit (loss) from continuing operations	(449)		2,645
Profit (loss) from discontinued operations	44,409		(3,630)
Net profit (loss) for the year	43,959		(985)
Profit (loss) pertaining to non-controlling interests	(1,397)		(1,393)
Profit (loss) pertaining to the Group	45,356		409

(*) values restated for application of IFRS 5

For greater clarity, the following table restates EBITDA to show the effective margin for the half-year, determined by eliminating: (i) the reversal of lease payments incorporated in the accounting amounts in application of IFRS 16; (ii) the impact of the cost relating to the variable remuneration accrued for the sale of the Zaffiro Group by the Mittel management, as envisaged by the company's remuneration policy; (iii) ancillary charges of a tax and social security nature accrued on the items referred to in the previous point.

On the other hand, with regard to the impacts on the Group's result, it should be noted that, with the sale of the Zaffiro Group, the overall effect of IFRS 16 on this figure is not significant and therefore does not require a similar reconciliation. Moreover, as required by IFRS 5, the economic contribution (gross of third parties) of the assets attributable to the Zaffiro Group (including the result from deconsolidation) is already separately shown in a specific financial statement item (with the exception of the indirect impacts highlighted in the previous table).

On the other hand, with regard to the impacts on the Group's result, it should be noted that, with the sale of the Zaffiro Group, the overall effect of IFRS 16 on this figure is not significant and therefore does not require a similar reconciliation. Moreover, as required by IFRS 5, the economic contribution (gross of third parties) of the assets attributable to the Zaffiro Group (including the result from deconsolidation) is already separately shown in a specific financial statement item (with the exception of the indirect impacts highlighted in the previous table).

Before moving on to analyse the most significant individual items of the consolidated income statement, it should be noted that in the half-year, despite the negative impacts deriving from the current market context, the industrial sectors contributed to generating a significant level of consolidated revenues, equal to EUR 67.3 million (EUR 73.2 million in the comparison period, net of the contribution of the Zaffiro Group), and a significant consolidated operating margin of EUR 6.5 million (EUR 8.0 million in the comparison period, net of the Zaffiro Group contribution), deriving from the following net sector contributions:

• Design: EBITDA before IFRS 16 equal to EUR 7.4 million (EUR 8.8 million in the comparison half-year), with margins maintained high by the sector investees (Ceramica Cielo, Galassia and Disegno Ceramica), despite a slowdown in turnover recorded, in the current macroeconomic context, in the second quarter, after an extremely positive first quarter;
• Automotive: EBITDA before IFRS 16 of EUR 2.6 million (EUR 2.4 million as at 30 June 2022), confirming the operational recovery recorded in 2022, after a very difficult 2021 and despite the impacts of the difficult geopolitical and market situation.
• Clothing: EBITDA before IFRS 16 negative for EUR 0.7 million (negative for EUR 0.4 million in the comparison period), with the sector that will produce its profit margins in the second half of the year, given the seasonality of the investee Sport Fashion Service;
• Real Estate: negative EBITDA of EUR 0.4 million (negative for EUR 0.3 million as at 30 June 2022), with an unremarkable half-year in terms of sales, after an important development in recent years;
• Equity and investments: negative EBITDA before IFRS 16 of EUR 2.3 million (negative for EUR 2.5 million in the comparison period), which, starting from the last few financial years, benefits from the strong reduction in holding costs realised in recent years.

Details on the most significant items are presented below.

• Revenue and other income: this reclassified item includes the financial statement items for revenue and other income, which, as at 30 June 2023 had a balance of EUR 71.1 million (EUR
  76.7 million in the comparison period). This balance was the combined result of the following factors:
• 1. revenue recognition of EUR 67,3 million (EUR 73,2 million as at 30 June 2022); the following sectors primarily contributed to this total:
  2. • the Design sector (Ceramica Cielo, Galassia and Disegno Ceramica) for EUR 38.0 million (EUR 40.5 million in the comparison period);
     • the Automotive sector (IMC) for EUR 22,5 million (EUR 20.6 million in the comparison period)
     • the Clothing sector for EUR 5.8 million (value in line with the comparison period);
     • the Real Estate sector for EUR 1.0 million (EUR 6.3 million in the comparison period);
  3. the recognition of other income for EUR 3.8 million (EUR 3.4 million in the comparison period), mainly attributable to the Design sector for EUR 2.7 million.
• Increases (decreases) in inventories: the positive contribution recorded during the period, amounting to EUR 1.9 million (EUR 0.4 million in the comparison period), is due to the net effect of:
• 1. the net increase in inventories of the Clothing sector for EUR 2.3 million (EUR 3.3 million in the comparison period)
  2. increase of the Design sector for EUR 0.5 million (EUR 0.7 million in the comparison period);
  3. the net decrease of the Automotive sector for EUR 0.1 million (net increase of EUR 0.5 million in the comparison period):
  4. the reduction for offloading of selling costs of property inventories for EUR 0.9 million (EUR 6.0 million as at 30 June 2022);

• 1. the increase in property inventories for costs capitalised and other changes for EUR 0.1 million (EUR 1.9 million as at 30 June 2022).
• Costs for purchases, provision of services, sundry costs: this item, totalling EUR 51.6 million (EUR 52.0 million as at 30 June 2022), includes costs for purchases of EUR 31.4 million (EUR
• 1. million in the comparison period), costs for services of EUR 18.3 million (EUR 16.3 million as at 30 June 2022) and sundry costs of EUR 1.8 million (EUR 1.1 million in the comparison period). The main contributors to this item were the following sectors:
  1. the Design sector for EUR 23.3 million (EUR 24.4 million in the comparison period);
  2. the Automotive sector for EUR 15.9 million (EUR 15.3 million in the comparison period);
  3. the Clothing sector for EUR 7.3 million (EUR 8.5 million in the comparison period);
  4. the Real Estate sector for EUR 0.7 million (EUR 2.5 million in the comparison period), of which EUR 0.1 million to be read together with the increase in property inventories for capitalised costs (EUR 1.9 million in the comparison period);
  5. the Parent Company Mittel for EUR 4.5 million (EUR 1.3 million in the comparison period), of which EUR 2.9 million relating to the portion of the variable remuneration (accrued, as required by the remuneration policy, for the sale of the Zaffiro Group) referring to directors (EUR 2.3 million in gross remuneration and EUR 0.6 million in ancillary charges of a tax and contribution nature).
• Personnel costs: the item shows a balance of EUR 16.9 million (EUR 15.4 million as at 30 June 2022), of which EUR 10.2 million regarding the Design sector (EUR 10.1 million in the comparison period), EUR 3.4 million attributable to the Automotive sector (EUR 3.0 million in the comparison period), EUR 1.8 million relating to the Parent Company Mittel (EUR 1.0 million in the comparison period), of which EUR 0.7 million relating to the portion of the variable remuneration (accrued, as required by the remuneration policy, for the sale of the Zaffiro Group) referring to employees (EUR
• 1. million in gross remuneration and EUR 0.1 million in ancillary charges of a contribution nature) and EUR 1.6 million relating to the Clothing sector (EUR 1.3 million in the comparison period).
• Amortisation/depreciation, allocations and adjustments to non-current assets: the item showed a total balance as at 30 June 2023 of EUR 4.7 million (EUR 4.3 million as at 30 June 2022), due for EUR 1.5 million (EUR 1.4 million in the comparison period) to the amortisation/depreciation for rights of use recognised as a result of the application of IFRS 16; for the remaining portion the amortisation/depreciation refers to the tangible assets held by the operating companies (EUR 1.6 million for Automotive sector, EUR 1.3 million for Design sector and EUR 0.2 million for Clothing sector).
• Share of profit (loss) from investments: this item shows a negative balance of EUR 0.5 million, entirely attributable to the pro-rata consolidation of the negative result accrued in the half-year by the equity-consolidated subsidiary Mittel Generale Investimenti.
• Profit (loss) from financial management: this item shows an overall positive balance of EUR
• 1. million (negative EUR 0.6 million in the comparison period), explained by the net effect: (i) of financial income of EUR 1.8 million, of which EUR 1.3 million relating to the holding company (written down, however, for EUR 0.8 million in the item "Profit (loss) from management and valuation of financial assets"), accrued during the half-year on receivables and time deposits held, and EUR 0.4 million to the Design sector (attributable to the remuneration of the liquidity held by Ceramica Cielo and to a price adjustment item accrued on the purchase of Disegno Ceramica); (ii) financial expenses of EUR 1.2 million, of which EUR 0.3 million relating to financial expenses recognised in accordance with IFRS 16, EUR 0.3 million relating to the bank debt of the Automotive sector and EUR 0.3 million to the cost for the half-year of the residual portion of the Mittel bond (repaid in July 2023).
• Result of management and valuation of financial assets and receivables: this item contributed a negative EUR 0.1 million to the consolidated income statement (negative contribution of EUR 1.6 million in the comparison period) and is explained by the net effect of net value adjustments on loans for EUR 0.2 million (in turn explained by the net effect of write-downsfor EUR 0.8 million and a write-backof about EUR 0.6 million deriving from a collection made in the half-yearon a previously written down item) and reversals of impairment losses on financial assets for EUR 0.1 million (to align with the fair value on the reporting date).
• Taxes: the item shows a negative balance of EUR 0.4 million (in line with the comparison period) essentially attributable to IRAP for the half-year.

• Profit (loss) from discontinued operations: this item shows a balance of EUR 44.4 million (EUR 3.6 million in the comparison period), relating to the Nursing Home operating segment, subject to disposal in the half-year. The item is attributable to the net effect: (i) of the loss (until the date of sale) of EUR 4.1 million (EUR 2.5 million net of minority interests, equal to EUR 1.6 million, shown in the specific financial statement item); (ii) of the result from deconsolidation, equal to EUR 48.5 million. Therefore, the overall contribution to the Group result for the half-year from the Zaffiro Group is equal to EUR 46.0 million (EUR 45.4 million net of the effect of the intercompany items accrued by Mittel in the half-year on existing loans to the investee, fully repaid with the sale).
• Profit (loss) pertaining to non-controlling interests: shows a negative balance of EUR 1.4 million (value in line with the comparison period). The result is explained for negative EUR 1.6 million by the portion pertaining to minority interests of the loss of the Zaffiro Group and for the residual positive EUR 0.2 million to the portion pertaining to minority interests of the profit of the other investees not entirely held by Mittel.

Main financial and equity figures of the Group

As better detailed below, the composition of the aforementioned items, and in particular intangible assets and property, plant and equipment, reflects the effects of the acquisitions made in the previous years in the Nursing Home, Design, Automotive and Clothing sectors, net of significant reductions at the end of the half-year due to the deconsolidation of the Zaffiro Group. Conversely, the progress of the disposal of non-core assets has led to a reduction in the related items in the statement of financial position (investments, financial receivables and other non-current financial assets) in recent years.

Intangible assets amounted to EUR 61.6 million (EUR 109.7 million as at 31 December 2022). The item, almost entirely attributable to goodwill and trademarks, decreased by approximately EUR 48 million due to the deconsolidation of the Nursing Home sector, which in the comparison period contributed to the item with total goodwill of EUR 46.8 million and with the trademark registration value (equal to EUR 1.1 million). Goodwill relating to the acquisition of Ceramica Cielo S.p.A. (which took place in June 2017) amounted to EUR 5,6 million, augmented by EUR 4,3 million relating to the company's trademark. Furthermore, as regards the Design sector, goodwill is recognised relating to the acquisitions of: (i) Galassia S.r.l. for an amount of EUR 4.4 million, in addition to EUR 2.0 million relating to the company's trademark; (ii) Disegno Ceramica S.r.l., for an amount of EUR 2.1 million.

In addition, goodwill of EUR 19.3 million was booked for the acquisition of IMC S.p.A. at the end of 2017.

The acquisition of Sport Fashion Service S.r.l. in November 2019 resulted in the recognition, with continuity of values, of goodwill (EUR 18.4 million) and trademarks (EUR 1.8 million) recognised in the package for the initial IFRS consolidation of the company at the acquisition date.

Finally, the purchase value of the Jeckerson brand was recorded during 2021, equal to approximately EUR 3.4 million.

Property, plant and equipment amounted to EUR 54.1 million (EUR 302.1 million as at 31 December 2022), of which EUR 18.4 million for IFRS 16 rights of use (EUR 233.5 million in the comparison period, of which EUR 213.2 ceased consequently to the deconsolidation of the Nursing Home sector that was characterised, as known, by long-term lease contracts on properties used as residences). The residual portion of this item's balance, equal to EUR 35.7 million (EUR 68.6 million in the comparison period, of which EUR 30.5 million ceased consequently to the deconsolidation of the Zaffiro Group), was heavily influenced by the contribution from the Automotive sector, amounting to EUR 12.6 million (total amount, net of accumulated amortisation, the partial allocation of goodwill recognised at the time of the acquisition to IMC S.p.A.'s presses) and from the Design sector, which contributed EUR 21.9 million.

Investments measured using the equity method totalled EUR 3.0 million (EUR 3.5 million as at 31 December 2022) and refer to the investment held by the Parent Company Mittel S.p.A. in Mittel Generale Investimenti S.r.l., which decreased as a result of the pro-rata loss accrued in the year on investee consolidated at equity.

Non-currentfinancial assets amounted to EUR 27.3 million (EUR 27.6 million as at 31 December 2022) and refer: i) for EUR 15.8 million (value in line with that of the previous year) to non-current financial receivables, relating to credit positions held by the Parent Company; and ii) for EUR 11.5 million (EUR

11.7 million in the comparison period) to other non-current financial assets, represented mainly by shares in real estate UCITS held by the Parent Company and shares in investment vehicles held by Mittel S.p.A. and by the subsidiary Earchimede S.p.A.

Provisions for risks, employee severance indemnity and employee benefits amounted to EUR 5.7 million (EUR 9.1 million as at 31 December 2022). In particular, as at 30 June 2023, this item consisted of EUR 4.7 million for Provisions for personnel (EUR 8.1 million in the comparison period, an amount that included the contribution of the Zaffiro Group of EUR 2.9 million) and EUR 1.0 million for Provisions for risks and charges (EUR 1.6 million in the comparison period, which incorporated the contribution of the Zaffiro Group for EUR 0.4 million). The contributors to the item Provisions for personnel were from the Design sector (EUR 2.8 million), the Parent Company Mittel S.p.A. (EUR 1.1 million), the Automotive sector (EUR 0.4 million) and the Clothing sector (EUR 0.3 million). Provisions for risks and charges instead refer primarily to the Design sector (EUR 0.5 million), and the Clothing sector (EUR 0.3 million).

The item net tax assets (liabilities) was positive for EUR 10.5 million (EUR 19.4 million as at 31 December 2022), decreasing mainly due to the elimination of the contribution of the Nursing Home sector, amounting to EUR 8.9 million in the comparison period (amount mainly attributable to deferred tax assets recognised on this sector, mainly linked to IFRS 16 items and to a lesser extent to tax losses accrued in recent years). The item is composed of the sum of current tax assets of EUR 0.8 million (EUR 1.0 million as at 31 December 2022) and deferred tax assets of EUR 11.1 million (EUR 20.7 million in the comparison period), offset by deferred tax liabilities for EUR 1.2 million (EUR 1.8 million in the comparison period) and current tax liabilities for EUR 0.2 million (EUR 0.5 million in the comparison period).

Net working capital amounted to EUR 61.0 million (EUR 46.7 million as at 31 December 2022). The item is composed of: (i) the value of Inventories for EUR 67.9 million (EUR 55.7 million in the comparison period), attributable for EUR 35.6 million to property inventories (EUR 26.0 million in the comparison period), incorporating for EUR 10.4 million (amount including minority interests of 45%) the effects of the described purchase of the area under development located in Milan/Via Cavriana, for EUR 16.1 million to the Design sector (EUR 15.6 million in the comparison period), for EUR 7.3 million to the Automotive sector (EUR 7.4 million in the comparison period) and for EUR 8.8 million to the Clothing sector (EUR 6.5 million in the comparison period); (ii) sundry receivables and other current assets amounting to EUR 39.1 million (EUR 53.5 million in the comparison period. This amount also incorporated the contribution from the Nursing Home sectors for EUR 10.2 million), contributed mainly by the Design sector for EUR 22.4 (EUR 21.7 million as at 31 December 2022), the Automotive sector for EUR 9.6 million (EUR 8.4 million as at 31 December 2022) and the Clothing sector for EUR 3.6 million (EUR 11.8 million in the comparison period); and (iii) Sundry payables and other current liabilities for EUR 45.9 million (EUR 62.5 million in the comparison period). This amount also incorporated the contribution from the Nursing Home sector for EUR 22.5 million, contributed mainly by the Design sector for EUR 23.1 million (EUR 24.6 million as at

31 December 2022), the Automotive sector for EUR 10.8 million (EUR 11.5 million as at 31 December 2022) and the Clothing sector for EUR 4.7 million (EUR 5.3 million in the previous year).

As a result, net invested capital amounted to EUR 212.8 million (EUR 501.0 million as at 31 December 2022), a figure that includes, as previously explained, the rights of use recognised pursuant to IFRS 16 for a total of EUR 18.2 million (down sharply from the comparison period, when they amounted to EUR

233.5 million, mainly due to the deconsolidation of the Zaffiro Group. The invested capital is lower than the consolidated equity, equal to EUR 273.5 million from equity (EUR 230.0 million in the comparison period), in the presence of a positive net financial position of EUR 60.7 million (negative for EUR 271.0 million as at 31 December 2022), which in the comparison period was heavily influenced by the application of IFRS 16 (with financial lease payables totalling EUR 264.6 million, which decreased to EUR 19.2 million in the half-year due to the described deconsolidation of the Zaffiro Group).

Equity pertaining to the Group amounted to EUR 54.4 million (EUR 219.6 million as at 31 December 2022), while that pertaining to non-controlling interests amounted to EUR 19.1 million (EUR 19.4 million as at 31 December 2022).

Given the performance of consolidated equity and profit figures described above, the accounting net financial position is positive for EUR 60.7 million (negative for EUR 271.0 million as at 31 December 2022). Net of the impact of IFRS 16, the net financial position was positive for EUR 79.9 million, also a clear improvement compared to the negative EUR 6.4 million of the comparison period. The detailed breakdown of the item is provided below.

Statement relating to the net financial position