Tesmec S p A : The BoD approved draft Financial Statement at 31.12.2020 and Consolidated Financial Statement 31.12.2020

TESMEC S.P.A.: THE BOARD OF DIRECTORS APPROVED THE FINANCIAL STATEMENTS AND THE 2020 CONSOLIDATED FINANCIAL STATEMENTS, THAT CONFIRMED 2020 GUIDANCE AND THE IMPROVEMENT OF THE NET FINANCIAL POSITION

Main consolidated proforma1 results of 2020:

• • Revenues: Euro 172.8 million proforma compared to Euro 199.6 million proforma as at 31 December 2019. The non-proforma revenues amounted to Euro 170.6 million compared to Euro 200.6 million no proforma as at 31 December 2019.

• • EBITDA2: Euro 22.9 million proforma compared to Euro 30.0 million proforma as at 31 December 2019.

  The non-proforma EBITDA amounted to Euro 21.0 million compared to Euro 27.4 million as at 31

  December 2019.

• • EBIT: negative Euro 0.6 million compared to Euro 6.4 million proforma as at 31 December 2019. This result was impacted by the amortization related to the 4Service fleet, by faster depreciation criteria and full depreciation rates despite the months of non-use related to the COVID-19 situation. The non-proforma EBIT was negative Euro 0.9 million as at 31 December 2020 compared to Euro 8.4 million as at 31 December 2019.

• • Net result: negative Euro 6.5 million proforma compared to net profit of Euro 1.6 million as at 31

  December 2019, affected by Euro 3.3 million of foreign exchange losses, mainly foreign exchange accruals. The non-proforma net results amounted to negative Euro 6.8 million compared to net profit of Euro 3.0 million as at 31 December 2019.

• • Net financial indebtedness: Euro 104.4 million or without considering the positive impact of the share capital increase Euro 129.1 million, with an improvement both compared to Euro 130.9 million as at 31

  December 2019 and to Euro 137.8 million as at 30 September 2020;

• • Total order backlog: Euro 282.4 million (compared to Euro 188.0 million as at 31 December 2019 and to Euro 238.0 million as at 30 September 2020).

Other resolutions:

• • The Board of Directors approved the Consolidated Disclosure of non-financial information for 2020 in accordance with Italian Legislative Decree no. 254/2016.

• • The Shareholders' Meeting was convened on 22 April 2021 in virtual mode.

1 The pro-forma results were prepared for illustrative purposes only, and were obtained by making appropriate pro-forma adjustments to the historical data to retroactively highlight the effects of the 4Service Group's transaction, as if this transaction had occurred on 1st January 2020, instead of on 23 April 2020. The pro-forma results therefore include the result of the 4Service Group on annual basis, instead of just the results achieved within the perimeter of the Tesmec Group from the date of first consolidation (April 23, 2020).

2 The EBITDA is represented by the operating income gross of amortization/depreciation. The EBITDA thus defined represents a measurement used by Company management to monitor and assess the company's operating performance. EBITDA is not recognized as a measure of performance by the IFRS and therefore is not to be considered an alternative measurement for assessing the performance of the Group's operating income. As the

composition of EBITDA is not governed by the reference accounting standards, the criterion for determination applied by the Group may not be in line with the criterion adopted by others and is therefore not comparable.

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Grassobbio (Bergamo - Italy), 12 March 2021 - Tesmec S.p.A. (MTA, STAR: TES) ("Tesmec" or the "Company"), at the head of a group leader in the market of technologies for infrastructures (overhead, underground and railway networks) related to the transport of energy, data and materials (oil and derivatives, gas and water), and of technologies in surface mining, convened today and chaired by Ambrogio Caccia Dominioni, examined and approved the Financial Statements and the Consolidated Financial Statements as at 31 December 2020, that confirmed the 2020 guidance and the guidelines of the 2020-2023 Business Plan, despite a first half of 2020 negatively affected by the spread of the COVID-19 pandemic and the consequent actions taken by public authorities to contain it.

The Chairman and CEO Ambrogio Caccia Dominioni commented as follows: "We closed the year 2020 with results in line with the forecasts of the 2020-2023 Business Plan. The important order acquisition, recorded during a certainly complicated year, allows us to confirm the expectations for 2021, even though we are aware that we still have an extremely challenging period ahead of us. 2020 was a year that changed our habits and our way of working defining a new, more digital and connected perspective. The Group's efforts in technological innovation, digital transformation and the search for ever greater environmental sustainability are solid foundations that drive us towards robust and sustainable future growth."

MAIN CONSOLIDATED RESULTS AS AT 31 DECEMBER 2020

Proforma revenues amounted to Euro 172,8 million as at 31 December 2020, confirming the closing forecast provided to the market by the Group in the 2020-2023 Business Plan, compared to proforma Euro 199.6 million as at 31 December 2019 and to non-proforma Euro 200.7 million. The non-proforma revenues amounted to Euro 170.6 million as at 31 December 2020. The variation compared to 2019, generated during the first half of the year, is mainly due to the slowdown in production activities following the health emergency from COVID-19, to the stops of the movement of goods and the consequent lockdown.

Results at 31 December

Revenues from sales and services

(Euro in thousands)	2020 PF	2020	2019 PF	2019	Change	Change
2020 PF vs	2020 vs 2019
2019
Trencher	102,608	100,444	124,231	125,306	-18.1%	-19.8%
Effect on Consolidated Revenues	59.4%	58.9%	62.2%	62.4%
Ferroviario	26,399	26,399	31,116	31,116	-15.2%	-15.2%
Effect on Consolidated Revenues	15.3%	15.5%	15.6%	15.5%
Energy	43,812	43,812	44,244	44,244	-1.0%	-1.0%
Effect on Consolidated Revenues	25.4%	25.7%	22.2%	22.0%
Consolidated	172,819	170,655	199,591	200,666	-13.9%	-15.0%
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In detail, the proforma revenues of the Trencher sector, including the rental activity of the 4Service Group, amount to Euro 102.6 million, with a decrease of 18.1% compared to Euro 125.3 million as at 31 December 2019. This performance was affected by the slowdown in logistics and rental activities, as well as by the production and transport blocks in the first half of the year following the health emergency from COVID-19. During the third quarter the impact was stabilized thanks to the return to full operation and it allowed the Group to achieve the targets announced for the fourth quarter, despite the uncertainty in USA due to political instability linked to the election of the new President of the United States of America. The non-proforma revenues of the Trencher sector were Euro 100.4 million. The commercial activities did not have significant contractions, and, in fact, the confirmed order backlog of the Trencher sector amounted to Euro 84.6 million as at 31 December 2020 (compared to Euro 65.1 million at 31 December 2019).

The Railway sector recorded Revenues as at 31 December 2020 of Euro 26.4 million, with a decrease of 15.2% compared to the Euro 31.1 million as at 31 December 2019. This trend is essentially due to the slowdown in activities and the temporary closure of the Monopoli plant in March and April following the health emergency from COVID-19. During the third quarter, production levels maintained full operation ensuring better performance than last year, the fourth quarter is in line with the expectations of the period, but with some orders with lower margins that impacted on the performance of the quarter. Also in this sector there was no reduction in commercial activities: the confirmed order backlog was, in fact, equal to Euro 121.6 million as at 31 December 2020 (compared to Euro 88.9 million as at 31 December 2019). This growth is mainly due to the award of the RFI - Rete Ferroviaria Italiana SpA - tender for the production of vehicles for the diagnostic of the railway network.

With reference to the Energy sector, Revenues as at 31 December 2020 were Euro 43.8 million, with a decrease of 1% compared to Euro 44.2 million as at 31 December 2019. In particular, the Stringing segment recorded revenues of Euro 30.3 million, compared to Euro 31.9 million as at 31 December 2019, with a reduction in turnover due to the slowdown and blocks of production activities from March to the first days of May following the health emergency from COVID-19. The Energy Automation segment recorded revenues of Euro 13.5 million compared to Euro 12.3 million as at 31 December 2019, recovering in the third quarter the gap generated by the slowdown of production and transport blocks of the first half and, therefore, confirming the growth expectations in the fourth quarter. The third quarter recorded a better performance than last year, confirming the improvement trend and the year-end outlook. The commercial activities of the two segments have had a strong push and in fact the confirmed order backlog amounted to Euro 76,2 million (compared to Euro 30.4 million as at 30 December 2019), 54.0 of which related to the Energy Automation segment.

In geographic terms, Tesmec Group keeps the percentage distribution of sales in line with the 2019 financial year with a focus in Italy, Europe and North America.

Proforma EBITDA was Euro 22.9 million as at 31 December 2020, in the median of the 2020 forecasts provided to the market, compared to proforma Euro 30.0 million as at 31 December 2019. After facing a first half of the year characterized by a decrease of margins due to the reduction in turnover - following the health emergency from COVID-19 - and having started the necessary actions in order to contain costs and improve the efficiency of the company structure, during the third and fourth quarters the Group achieved the expected and communicated margins. To be noted the impact of the rental activity that has higher margins and that allowed to mitigate the lacked sales in the period and the negative performance of the railway

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segment related to the execution of some orders with low margins. Non-proforma EBITDA was Euro 21.0 million as at 31 December 2020, compared to non-proforma Euro 27.4 million as at 31 December 2019.

The proforma EBIT of Tesmec Group was negative Euro 0.6 million as at 31 December 2020 compared to Euro 6.4 million proforma as at 31 December 2019. This result was impacted by the amortization related to the 4Service fleet, by faster depreciation criteria and full depreciation rates despite the months of non-use related to the COVID-19 situation. The non-proforma EBIT was negative Euro 0.9 million as at 31 December 2020 compared to Euro 8.4 million as at 31 December 2019.

The Net Financial Expenses of the Tesmec Group were Euro 8.0 million as at 31 December 2020, compared to Euro 4.2 million as at 31 December 2019. This change was due to exchange rate losses for an amount of Euro 3.3 million, mainly foreign exchange accruals, worse compared to the trend of September due to the negative performance of the USD and to the uncertainty in the US context during the last quarter. To be noted that, at the time of this press release, this change would be positive of about Euro 1.5 million due to the USD trend and linked currencies in the first quarter of 2021. The non-proforma Net Financial Expenses were Euro 8.2 million.

The proforma Net result as at 31 December 2020 amounted to negative Euro 6.5 million, compared to Euro 1.6 million proforma as at 31 December 2019. The non-proforma Net result was negative Euro 6.8 million compared to Euro 3.0 million as at 31 December 2019.

Net financial indebtedness was Euro 104.4 million, without the positive impact of the share capital increase it would have been Euro 129.1 million, improving both compared to Euro 130.9 million as at 31 December 2019 and to Euro 137.8 million as at 30 September 2020, thanks to the operational management. The net financial indebtedness has Euro 22.1 million of financial liabilities relating to rights of use (IFRS 16).

Based on the results of the financial statements and as already reported in the "Prospectus relating to the Rights Issue Offer of the Tesmec S.p.A., a financial covenant related to the Net Financial Position / EBITDA ratio is not respected for six banks. This covenant breach resulted in the short-term accrual of Euro 10.0 million for the residual medium-long term portions of loans of Euro 15.4 million. The company promptly started the procedures to get the waiver for the year 2020 with all the banks and, at present, has already got some waivers and believes that the others will be granted within the strictly needed technical times.

The Total Order Backlog of the Tesmec Group as at 31 December 2020 amounted to Euro 282.4 million - Euro 84.6 million of referring to the Trencher segment, Euro 121.6 million to the Railway segment and Euro 76.2 million to the Energy segment - with an increase both compared to Euro 188.0 million as at 31 December 2019 and to Euro 238 million as at 30 September 2020. The order backlog shows a significant improvement because the Group operates in sectors having a positive trend in the medium term and thanks to the final award of the RFI tender related to the supply of vehicles for the diagnostic of the railway infrastructure, already provisional awarded in 2020.

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