Tamburi Investment Partners S p A : Letter to the Shareholders

Dear Shareholders,

this year I have preferred to defer the sending of the usual letter for a few weeks, because of the wartime we are currently experiencing which clearly leads to overthinking rather than do or stimulate eco-nomic-financial analyses, and because talking about 2021 seems now anachronistic. However, on the occasion of the shareholders' meeting is a duty.

It is a bit of a pity, for TIP, to have to put the year of the record of eve-rything on the back burner, but it was "right" to do so compared to the immensely more important factors. The outcome of the war in Ukraine is still uncertain and the consequences of the situation that has arisen even more difficult to predict. But we must go on with the activity and we do it, with the usual enthusiasm and commitment, despite the difficul-ties of this particular moment.

The heart of the group, the investee companies, had an excellent 2021, almost for all of them better than 2019, demonstrating a truly com- forting underlying solidity of the respective businesses and an impres- sive resilience. So the first aspect to be underlined, once again, is that our 3 billion investments, which as known rise to 5 billion including the club deals, have been well allocated. And that, as of 1 January 2022, we were entering this incredibly "strange" year with over one and a half billion in capital gains compared to book values. Another record.

The chart comparing TIP stock to the major ten-year indices:

TIP STOCK VS DIFFERENT INDEXES FROM 22/4/2012 TO 22/4/2022

12,5

10,5

+464.5%

8,5

IT Star +409.7%

Nasdaq +335.6%

6,5

S&P 500 +215.8%

4,5

Dow Jones +164.4%

MSCI Eur +77.0% 2,5

FTSE MIB +75.3%

0,5

For TIP shareholders the Total Return, i.e. the figure that encompasses everything that has contributed to creating value over the decade, as of April 22, 2022 is 531.2%, which corresponds to an annual average of 53.1%. This result is truly encouraging both in absolute value and - perhaps even more - in relative terms considering that - in light of our portfolio diversification level - the implicit risk in investing in a stock like ours can be considered very low. And the same performance from the beginning of 2022 to date proves excellent resilience.

Last year we proudly announced that the TIP stock target prices were around 9 euros. During 2021, the share exceeded 10 euros and still, de-spite the many and significant setbacks the markets have experienced, and it still retain its value to around 9. Also dividend paid.

This year we thought it appropriate to compare TIP stock performance also with the main European listed industrial holding companies.

10 years performance of TIP stock vs the main

European industrial holding

INVESTOR AB 511,6%

TIP 464,5%

SOFINA 424,8%

AKER ASA 371,4%

EXOR NV 317,3%

EURAZEO SE 224,7%

INDUSTRIVARDEN AB 164,0%

WENDEL 79,6%

As of April 22, 2022, source: Bloomberg

In general, structural terms, TIP has not changed in the last 12/18 months.

The group's corporate structure is as shown in the graph below and, in terms of aggregate investments, the figures have remained very similar, also because the most significant innovation of 2021, i.e. the start-up of Itaca's operations, has not so far - I would say "fortunately", givenwhat has happened in recent months - allowed us to realize any invest-ment and the only transaction announced by Itaca - the investment in Landi Renzo Group - is expected to be executed in the second half of 2022.

Listed companies

Listed companies

Worldwide leader

European leader

Italian leader

Unlisted companies

StarTIP

Tamburi Investment Partners S.p.A.

Considering the value of TIP group, despite the uncertainties of the pe-riod, our estimates of N.I.V. - Net Intrinsic Value - i.e. the usual internal calculation of the aggregate assessment of the portfolio companies according to internally developed business plans, amounts - net of debts - to over 13 euros per share. The average analyst' consensus ontarget price who cover TIP stock is currently equal to 12.2 euro, a mi-nor variance comparing to the NIV, a difference that has decreased con-siderably in recent years. Therefore the "discount" remains high.

In fact, it is very difficult to carry out weighted and demonstrable as-sessments in periods characterized by a lack of raw materials and com-ponents as it has never occurred before, combined with massive diffi-culties in finding personnel at all levels which, in turns, is based on a geopolitical situation that could potentially generate reductions in turnover and margins. Given our own internal perspective, we con-stantly update business plans, review them both strategically and fi-nancially case-by-case trying to adapt values to the actual or possible evolutions of the portfolio companies.

In terms of potential risk and therefore diversification, the following table shows the updated breakdown of the NIV by industry sector and by "duration" of the portfolio companies.

NET INTRINSIC VALUE

NIV by industry NIV by year of investment

NFP: 432 MLN

2,4 BILLION

EURO

> 13 EURO PER

SHARE

In these analyses it should be remembered that the most surprising thing about the negative trends that have characterised the last thirty years has been the post-crisis fast rebound. Likewise, even the post-Covid re-covery (or at least what we have been able to see from mid-2020 on-wards, until what has been noticed in recent months) has been positively

VIN per settore

VIN per vintage

marked both by its sharpness and speed. Andin this context it would seem logical imagine that the strength of the new growth could be amplified through geo-political and supply shortages normalization.

What is certain is that the order backlog of all the industrial portfo-lio companies is very high and does not tend to decline, even if the most recent 2022 and 2023 estimates on GDP seem to heavily resize the previ-ous expected growth.

THE GENERAL CONTEXT

A year ago I wrote:

"Given the industrial context that we can observe among entrepreneurs as shareholders, investee companies and others, close to us, we are of-ten asked what is our feeling about the future of the economy and the evolution of the industrial system of our country. Being able to have, today, the serenity to formulate considerations following the appoint-ment of Mario Draghi as Prime Minister helps a lot".

"In any corner of the world there are no doubts regarding the great qualities of the person and on his proven competences, so it is clear that Italy is currently in a fantastic situation: very significant economic funds coming from Europe, a moment of objective recovery at interna-tional level given the certainty that the vaccinations in progress will allow a restart of commercial exchanges perhaps even in a stronger way than expected until a few months ago, a prestige, a set of skills and an authority that few times an Italian Prime Minister has had, these are all ingredients that "must" lead to a supposed extremely positive turn- ing points for the future of the entire Italian industrial system. "

It seems to me that facts have proved the correctness of such state-ments. The Draghi government has shown fantastic strength and credi-bility. The reconfirmation of President Mattarella has further strengthened the worth of these statements and there is no doubt that the whole world has continued to look at Italy with a level of serious-ness and trustworthiness that has been lacking for years. And we are all benefiting from these aspects, even though a part of politics keeps pretending not to have the willing to give the right value to this