Pininfarina S p A : GROUP – INTERIM FINANCIAL REPORT AT 30 JUNE 2022

PRESS RELEASE

(Translation from the Italian original which remains the definitive version)

Pininfarina Group Interim financial report

Reference markets, Coronavirus and going concern issues

Information required by Consob pursuant to art. 114 of Legislative decree no. 58/98

Outlook for 2022

Cambiano, 3 August 2022 - The Board of Directors of Pininfarina S.p.A., chaired by Paolo Pininfarina, met today and approved the Group's interim financial report for the first six months of 2022.

The key financial figures of the Pininfarina Group at 30 June 2022 and the relevant comparative figures are as follows:

(€/million)	H1 2022	H1 2021	2021	Variation*
Revenue	34.8	31.9		2.9
Ebitda	1.7	1.1		0.6
Ebit	-0.4	-1.0		0.6
Loss for the period	-1.3	-1.7		0.4
Net Financial position	4.4	6.1	6.9	-2.5
Equity	39.4	35.9	40.2	-0.8

* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2021.

EBITDA is the operating profit or loss gross of amortisation, depreciation and provisions. EBIT is the operating profit or loss.

Pursuant to article 154-bis. 2 of the Consolidated finance act, the manager in charge of financial reporting, Roberta Miniotti, states that the financial disclosures provided in this press release are consistent with the relevant documentation, ledgers and accounting records.

Pininfarina Group, the Coronavirus and the reference market

The conditions of the Pininfarina Group's reference market for the first half of 2022 were better than those of the corresponding period of one year earlier.

The growth of about 9% in the value of production at 30 June 2022 compared to the 2021 figure was mainly achieved in Italy, United States and China, while the activities in Germany, on the other hand, showed a decrease of about 11%.

Turning to the performance of the various group companies and operating margins: Pininfarina S.p.A.'s revenue rose by roughly 7% over 2021, still recording an operating loss but in strong improvement compared to the corresponding period of 2021. In Germany, Pininfarina Deutschland recorded a negative trend in revenue, reducing however its operating loss thanks to lower workforce and operating expenses. Pininfarina of America's revenue rose by roughly 47% compared to the corresponding period of 2021 with an increase of the operating result. The Chinese operations, run by Pininfarina Shanghai, slowed down due to shutdowns imposed to prevent a new spread of the Covid-19 pandemic and recorded an increased in revenue by 21%, which, however, is matched by a negative operating result of €0.3 million (profit of €0.4 million at 30 June 2021). Pininfarina Engineering S.r.l. in liquidation, company no longer operating since the last quarter 2020 and without employees, is waiting to complete the liquidation process, which it is expected to take place by the end of the year.

During the period, with the exception of the chinese market, there were no other Covid-19pandemic-induced closures or activity limitations.

With regard to the current geopolitical context characterised by the Russia-Ukraine conflict, the Pininfarina Group sales to countries affected by the current war are immaterial and the effect of their suspension is minimal. The macroeconomic scenario is likely to be adversely impacted by a significant increase in energy

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PRESS RELEASE

and commodity prices. In this regard, it is expected that the Group, not being a large user of these resources, may only experience negative impacts indirectly and limitedly in the short term.

Cash flows

The Group's cash and cash equivalents (€27 million) decreased by €2.4 million compared to 31 December 2021, mainly due to working capital trends. The Group paid off all its bank overdrafts. Its non-current bank loans and borrowings increased by €0.6 million, mostly due to the parent's unrealised interest expense arising from amortised-cost accounting.

Neither the parent, Pininfarina S.p.A., nor its subsidiary Pininfarina Engineering S.r.l. in liquidation availed themselves of the loans provided for by the measures approved by the Italian government to support companies or granted by banks. There were no interventions in favour of other companies of the group.

Pininfarina S.p.A.'s financial debt

The parent has continued to meet its obligations, without undue distress, including those under the debt rescheduling agreement (2016-2025) with certain banks. Such agreement provides for just one financial covenant (consolidated equity at a minimum of €30 million), compliance with which is assessed at 31 March each year up until repayment of the loan. At 31 March 2022, the covenant had been complied with. Should the minimum equity threshold not be complied with, the agreement would not be automatically terminated, as it provides for specific remedies and the lending banks can also waive their right to take action. The Mahindra Group has provided a surety that is enforceable if the parent fails to meet its obligations under the rescheduling agreement.

Going concern issues

The estimated effects of Covid-19 on the period 1 January - 30 June 2022

In the first half of 2022, the Group was affected by downturns in activities due to the lock down period in China between the end of March and the beginning of June to face a new wave of the Coronavirus pandemic. Taking into consideration the revenue, the reduction in the first half of 2022 compared to the forecast in relation to the aforementioned market is estimated to be largely due to the effects of the lock down.

Group's performance, outlook and going concern issues

In their comments on the 2021 figures, the directors had explained that, in an environment of weak reference markets, caused by the continuation of the negative economic cycle of the global automotive industry and the Covid-19 pandemic, the parent is tackling three closely related issues:

• maintaining an appropriate level of liquidity for the Group's requirements;
• protecting the capitalisation level required by the law and bank agreements;
• creating the conditions for restoring profitability as soon as possible.

At the reporting date, the Group net financial position was €4.4 million, comprising cash and cash equivalents of €27 million and loans and borrowings of €20.2 million, whose current portion amounts to €3.6 million. According to the 12-month cash budget prepared by the directors, the parent's and Group's financial resources at the reporting date should be adequate to cover the expected operating requirements, including the outlays necessary to complete the winding up procedure of Pininfarina Engineering S.r.l. in liquidation and to repay the current portion of loans and borrowings when they become due.

The parent must monitor its equity at consolidation level closely, not only in order to comply with the requirements of the Italian Civil Code governing share capital protection. Indeed, the only financial covenant

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provided for by the existing debt restructuring agreement is a minimum level of €30 million of consolidated equity, compliance with which is assessed at 31 March each year (at 31 March 2022, the covenant had been complied with). Considering the Group's performance in the first six months of 2022, there are no reasons to believe that compliance with the financial covenant at the next assessment date of 31 March 2023 is at risk. The Mahindra Group - which recently has provided financial support by injecting resources of 20 million euros as part of the capital increase operation finalized in 2021 - has provided a surety that is enforceable if the parent fails to meet its obligations under the rescheduling agreement.

In order to tackle their performance issues and return to a profit-making position, considering the market performance of the last years and currently foreseeable outlook, the parent and the Group adopted various measures in 2020 and 2021, including the winding up of the subsidiary Pininfarina Engineering S.r.l., given the market conditions and its no longer sustainable performance; implementation of a redundancy plan for Pininfarina Deutschland GmbH, involving 46 people (approximately 20% of its workforce); reduction of the number of direct and indirect staff working at Pininfarina S.p.A., in order to bring the professional skills and number of resources into line with the current market requirements and a plan to reduce operating expense and overheads, also by increasing resort to outsourcing in some cases.

Moreover, the Group developed new commercial projects to better tailor its services to the continuous changes in market demand.

The figures at H1 2022 confirm the improvement of Operating profit margins started in 2021 and the soundness of the actions taken in this respect in the previous year, substantially in line with the expectations. Although in an environment still characterized by profiles of uncertainty, business opportunities and prices offered were stable, in line with the trend envisaged by the directors for this year.

In this scenario, the directors checked whether the previously-prepared financial projections, which are based on the positive effects of the restructuring and refocusing actions undertaken by the Group and the use of operating cash flows in 2022, were still valid. The H1 2022 figures show the continuous improvement in the operating performance compared to the previous year, even though still negative. Despite the significant financial improvements compared to the previous years, the restructuring and refocusing process will still require significant efforts in terms of sales volumes, cost containment and costs to win future contracts.

According to the directors, given the current limited observation period of the benefits from the improvement actions put in place, there continues to be significant uncertainty about the achievement of the production volumes and improved profitability goals, as they depend on a prolonged recovery of the markets in which the Group and the parent - with particular attention to the German market - operate in the next few years, as well as on changes in the costs to win future contracts and procurement costs to maintain the conditions for them to continue to be profitable such also as to enable the Group to maintain the capitalization requirements of the Rescheduling agreement. Should the economic performance and, consequently, the financial results not be in line with the forecasts, the Company and the Group would have to seek alternative sources of financing, as well as acquire new capital resources; the foregoing configures the existence of a significant uncertainty that may cast material doubts about their ability to continue as going concerns.

Notwithstanding the above, the directors, after having carried out all relevant checks and evaluated the above uncertainty - also in light of the results of the mitigating actions put in place and of the results for H1 2022 - reasonably expect that the parent and the Group have sufficient resources available to continue their operations for the foreseeable future. Due to the above reasons, the directors deem it correct to prepare this interim financial report at 30 June 2022 on a going concern basis.

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Information required by Consob (the Italian Commission for listed companies and the stock exchange) pursuant to article 114.5 of Legislative decree no. 58/98

1. The net financial position of the Pininfarina Group and Pininfarina S.p.A., with separate classification of current and non-current items, are attached hereto;
2. The Group has no past-due liabilities (of a commercial, financial, tax or social security nature). No actions against the Group have been filed by creditors;
3. The Group's and parent's related party transactions are attached hereto. Except for a major trading transaction (supply of design and engineering services) between the parent and its indirect associate Automobili Pininfarina GmbH whose activities ended during the first half of the year, the related party transactions are substantially unchanged from those reported in the separate and consolidated financial statements at 31 December 2021. Revenue from related party transactions accounted for 4.9% of the Group's total revenue for the first six months of 2022, compared to 7.1% at 31 December 2021;
4. Under the existing Rescheduling Agreement between the parent and the banks, there is just one financial covenant, to be checked annually beginning from 31 March 2018: consolidated equity at a minimum level of €30 million. At 31 March 2022, it had been complied with. The Group has no further loans and borrowings carrying clauses that limit its use of financial resources;
5. On 23 March 2022, when the Board of Directors approved the 2021 annual financial report, Pininfarina S.p.A. announced that its outlook for 2022 was an increase in revenue compared to 2021. Other than the above, the parent has not disclosed any other financial forecasts.

Support and relief measures

In accordance with ESMA recommendations (Public Statement 32-63-972 of 20 May 2020), the support and relief measures already enjoyed in the first six months of 2022 or that will be enjoyed by the Group are summarised below:

• in Italy, the Covid-19-government-sponsoredlay-off scheme was not used by the italian companies;
• in Germany, the government-sponsoredlay-off scheme (Kurzarbeit) for 31 workers for a total of 6,192 hours.

The Group does not plan to continue to use the social shock absorbers made available by government in Italy and Germany.

The key financial figures of the parent, Pininfarina S.p.A., are summarised below:

(€/million)	H1 2022	H1 2021	2022	Variation*
Revenue	21.7	20.2		1.5
Ebitda	1.1	0.4		0.7
Ebit	-0.5	-1.3		0.8
Loss for the period	-1.1	-2.0		0.9
Net financial position	5.2	6.4	6.9	-1.7
Equity	50.6	46.5	51.4	-0.8

* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2021.

EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.

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Events after the reporting period

There are no significant events that occurred after the reporting date.

Outlook for 2022

Based on the current situation of the business sectors where the Pininfarina Group operates, its outlook for 2022 is an increase in revenue compared to 2021.

Contacts:

Pininfarina:

Francesco Fiordelisi, Investor Relations and Corporate communication, Phone [phone], [e-mail]

Carolina Mailander Comunicazione:

Carolina Mailander, [e-mail]

Stella Casazza, Phone [phone], [e-mail]

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