SeSa S p A : Half-Year Financial Report at 31 October 2021

Half-Year

Financial

Report

31 October 2021

Contents

Interim Report on operations .................................................................................................................................................................	3
Management and auditing boards of Sesa SpA.......................................................................................................................................................................	4
Highlights of the Group's income statement and balance sheet .......................................................................................................................................	5
Main Group financial ratios.............................................................................................................................................................................................................	6
Sesa Group Structure as of 31 October 2021............................................................................................................................................................................	7
Foreword ...............................................................................................................................................................................................................................................	8
Alternative Performance Indicators ..............................................................................................................................................................................................	9
Significant events during the period..........................................................................................................................................................................................	10
Operating conditions and development of the Group's structure and Business ........................................................................................................	12
Performance of operations............................................................................................................................................................................................................	20
Corporate Governance....................................................................................................................................................................................................................	34
Treasury shares..................................................................................................................................................................................................................................	34
Relations with subsidiaries, associated companies, parent companies and affiliates ................................................................................................	35
Human resources and sustainable growth...............................................................................................................................................................................	35
Staff.......................................................................................................................................................................................................................................................	35
Hiring....................................................................................................................................................................................................................................................	36
Training and Development of resources...................................................................................................................................................................................	36
Main risks and uncertainties to which the Group and Sesa SpA are exposed..............................................................................................................	38
Significant events occurring after the end of the half-year................................................................................................................................................	41
Business outlook...............................................................................................................................................................................................................................	41
Condensed Consolidated Half-Year Financial Statements at 31 October 2021....................................................................................	42
Consolidated Income Statement.................................................................................................................................................................................................	43
Consolidated Statement of Comprehensive Income ............................................................................................................................................................	43
Consolidated Statement of Financial Position ........................................................................................................................................................................	44
Consolidated Statement of Cash Flows.....................................................................................................................................................................................	45
Consolidated Statement of Changes in Shareholders' Equity............................................................................................................................................	46
Notes to the Condensed Consolidated Half-Year Financial Statements ........................................................................................................................	47

Certification of the Condensed Consolidated Half-Year Financial Statements pursuant to article 154 bis, para. 5 of Legislative Decree

58/98.....................................................................................................................................................................................................................................................	71
Independent Auditor's Report......................................................................................................................................................................................................	72

2

Interim Report on operations

Management and auditing boards of Sesa SpA

Board of Directors		Expiry
Paolo Castellacci	Chairman	approval of financial statements 30 April 2024
Alessandro Fabbroni	Chief Executive Officer	approval of financial statements 30 April 2024
Giovanni Moriani	Executive Deputy Chairman	approval of financial statements 30 April 2024
Moreno Gaini	Executive Deputy Chairman	approval of financial statements 30 April 2024
Claudio Berretti	Non-Executive Director	approval of financial statements 30 April 2024
Angelica Pelizzari	Non-Executive Director	approval of financial statements 30 April 2024
Giuseppe Cerati	Independent Director	approval of financial statements 30 April 2024
Chiara Pieragnoli	Independent Director	approval of financial statements 30 April 2024
Giovanna Zanotti	Independent Director	approval of financial statements 30 April 2024
Angela Oggionni	Independent Director	approval of financial statements 30 April 2024

The Chief Executive Officer, Mr. Alessandro Fabbroni, is delegated the administrative powers relating to the corporate functions and management of equity investments The Executive Deputy Chairman, Moreno Gaini, is delegated powers of financial management

The Executive Deputy Chairman, Giovanni Moriani is delegated powers of technical management and as Chief Technology Officer

Corporate Governance Bodies

Management Control Committee		Expiry
Giuseppe Cerati	Chairman	approval of financial statements 30 April 2024
Giovanna Zanotti	Member	approval of financial statements 30 April 2024
Chiara Pieragnoli	Member	approval of financial statements 30 April 2024

The Management Control Committee also performs the role of the Control and Risks and Related Parties Committee and that of the Supervisory Board Director assigned to Internal Control. Alessandro Fabbroni. Head of the Internal Auditing activity, Michele Ferri

Remuneration Committee		Expiry
Angela Oggionni	Chairman	approval of financial statements 30 April 2024
Giovanna Zanotti	Member	approval of financial statements 30 April 2024
Claudio Berretti	Member	approval of financial statements 30 April 2024

Independent Auditors				Expiry
Company appointed to independently audit		PricewaterhouseCoopers SpA		approval of financial statements 30 April 2022
the accounts
Head of Finance, Planning & Control, Francesco Billi
Listing Market
Euronext, Milan					STAR segment
Share Capital (in EUR)					37,126,927.50
Number of ordinary shares issued					15,494,590
Portion of share capital held by the controlling shareholder ITH S.p.A.		52.81%
Specialist Operator					Intermonte Sim SpA
Head of the Investor Relations activity and Corporate Counsel Conxi Palmero

4

Highlights of the Group's income statement and balance sheet

Consolidated earnings and financial data for the periods ended 31 October of each year
(Euro thousands)	2021		2020	2019	2018	2017
Revenues	1,024,779		883,159	764,960	643,770	560,557
Total revenues and other income	1,036,700		889,280	770,202	648,208	564,912
EBITDA (Earnings before interest, tax, depreciation and	73,272		53,566	40,034	30,144	25,846
amortisation)
Adjusted Operating Result (EBIT)1	56,183		39,075	29,764	22,681	20,297
EBIT (Operating Result)	50,532		35,725	27,766	21,462	19,380
Profit (loss) before taxes	47,326		34,286	25,967	19,638	17,971
Net profit	33,968		24,392	18,076	13,684	12,429
Net profit attributable to the Group	31,811		21,817	16,000	11,996	10,853
Adjusted Earnings After Tax (EAT) attributable to the	35,833		24,202	17,422	12,864	11,506
Group1
Consolidated balance sheet figures as of 31 October of each year
(Euro thousands)	2021		2020	2019	2018	2017
Total Net Invested Capital	253,055		249,246	234,516	211,810	203,776
Total Shareholders' Equity	286,627		272,326	236,465	213,612	201,650
- attributable to the Group	267,159		253,089	222,580	203,249	192,699
- attributable to non-controlling interests	19,468		19,237	13,885	10,363	8,951
Net Financial Position Reported (Net Liquidity)	(33,572)		(23,080)	(1,949)	(1,802)	2,126
Net Financial Position (Net Liquidity)2	(170,868)		(101,653)	(43,649)	(23,446)	(14,023)
Consolidated income ratios for financial periods ending 31 October of each year
	2021		2020	2019	2018	2017
EBITDA / Total revenues and other income	7.1%		6.0%	5.2%	4.7%	4.6%
EBIT / Total revenues and other income (ROS)	4.9%		4.0%	3.6%	3.3%	3.5%
EAT attributable to the Group/ Total revenues and other	3.1%		2.7%	2.3%	2.0%	2.0%
income
Personnel at Group level
(units or thousands)	2021		2020	2019	2018	2017
Personnel at period end	3,714		3,073	2,054	1,756	1,479
Average workforce for the period	3,578		2,810	1,977	1,618	1,453

1. Adjusted Ebit before amortisation and depreciation of Client lists and Know-how recorded following the Purchase Price Allocation (PPA). Adjusted Net profit attributable to the Group gross of amortisation and depreciation of Client lists and Know-how recorded following the Purchase Price Allocation (PPA), net of tax effect
2. Adjusted NFP, not including payables and commitments for non-interest-bearing deferred payments for corporate acquisitions (Earn Outs, Put Options, deferred prices) and liabilities recorded in accordance to IFRS 16.

5