Tamburi Investment Partners S p A : Consolidated half-year financial report 2023 Tamburi Investment Partners Group

Consolidated half-year financial report 2023

Tamburi Investment Partners Group

We should all feel nothing but shame for the reputation that finance has earned itself in the last few years, but if you manage to guide healthy capital from successful businesses, long- term investors and the assets of families that wish to invest them intelligently in companies that want to grow, you are doing one of the most beneficial jobs in the world.

(TRANSLATION FROM THE ITALIAN ORIGINAL WHICH REMAINS THE DEFINITIVE VERSION)

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CONTENTS

Company Boards	3
Interim Directors' Report	4
Condensed consolidated half-year financial statements
Financial Statements	27

• Consolidated Income Statement
• Consolidated comprehensive income statement
• Consolidated statement of financial position
• Statement of changes in consolidated equity
• Consolidated cash flow statement

Explanatory notes to the condensed consolidated half-year financial statements as at 30 June 2023	33
Attachments	59

• Declaration of the Executive Officer for Financial Reporting
• Changes in investments measured at FVOCI
• Changes in investments measured by the equity method
• Independent auditor's report

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TAMBURI INVESTMENT PARTNERS GROUP

Company Boards

Board of Directors of Tamburi Investment Partners S.p.A.

Giovanni Tamburi	Chairperson and Chief Executive Officer
Alessandra Gritti	Vice Chairperson and Chief Executive Officer
Cesare d'Amico	Vice Chairperson
Claudio Berretti	Executive Director and General Manager
Isabella Ercole (1)(2)	Independent Director *
Giuseppe Ferrero (1)	Independent Director *
Sergio Marullo di Condojanni (1)	Independent Director *
Manuela Mezzetti (1)(2)	Independent Director *
Daniela Palestra (2)	Independent Director *
Paul Schapira	Independent Director *

Board of Statutory Auditors

Myriam Amato

Fabio Pasquini

Marzia Nicelli

Marina Mottura

Massimiliano Alberto Tonarini

Chairperson

Statutory Auditor

Statutory Auditor

Statutory Auditor Statutory Auditor

Independent Audit Firm

KPMG S.p.A.

Registered office

Via Pontaccio 10, Milan, Italy

1. Member of the Appointments and Remuneration Committee
2. Member of the Control and Risk, Related Parties and Sustainability Committee * In accordance with the Self-Governance Code

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TAMBURI INVESTMENT PARTNERS GROUP

Interim Directors' Report of the Tamburi Investment Partners as at 30 June 2023

The TIP group closed the first six months with a consolidated pro forma profit of Euro 64.7 million, more than double the result for the same six-month period of 2022, and with shareholders' equity of Euro 1.37 billion, after dividend distributions of approximately Euro 21.7 million and purchases of treasury shares of a further Euro 9.7 million.

The capital gains realised in the first half of 2023 relate to numerous disposals of equity investments, including the sale of one-third of the stake in Azimut/Benetti, a reduction in the investment in Prysmian and Fagerhult, and the sale of Ferrari shares.

The share in profits of associated companies in the first half of 2023, amounting to over Euro 34 million, is considerably higher than the Euro 25.3 million recorded in the first half of 2022, due to the positive and growing results of the investees IPGH (Interpump), ITH (SeSa), Elica, Limonta, OVS, Beta Utensili, Sant'Agata (Chiorino), Roche Bobois and Italian Design Brands. After successfully facing and overcoming the negative effects arising initially from the Covid epidemic and then from increases in raw material and energy costs, despite the uncertainties generated by ongoing geopolitical tensions and heightened concerns about economic trends, TIP's investees in the first half of 2023 further improved on the already excellent results for the first half of 2022.

Of particular note was the remarkable performance of Alpitour, a fast-growing group which during the period posted a positive first half-year EBITDA for the first time in its history. Aside from the seasonal nature of Alpitour's business, the economic results achieved so far and the group's order intake enable us to predict an extremely positive result for the current year and, even more importantly, a change that we believe to be structural - due in part to substantial investments made

• in the group's income statement.

The customary pro forma income statement for the period January 1 to 30 June 2023, prepared considering the basis of realised capital gains and losses and write-downs on investments in equity, is set out in the following table. As is well known, this system, which was in place until a few years ago, is considered to be much more meaningful in representing the reality of TIP's business.

The pro forma figures are commented on in the interim Directors' Report, while the notes provide information on the figures determined in accordance with IFRS.

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TAMBURI INVESTMENT PARTNERS GROUP

			Reclassification
		Reclassification	to income
		to income	statement of
		statement of	value
Consolidated Income	IFRS	capital gain	adjustments to
Statement	30/06/2023	(loss) realised	investments
(in Euro)
Total revenues	679,949
Purchases, service and other
costs	(1,800,052)
Personnel expenses	(13,875,638)
Amortisation	(184,379)
Operating profit/(loss)	(15,180,120)	0	0
Financial income	9,721,279	45,401,858
Financial charges	(10,139,795)
Share of profit/(loss)of
associated companies
measured under the equity
method	34,362,944
Adjustments to financial
assets	0		(373,025)
Profit/(loss)before taxes	18,764,308	45,401,858	(373,025)
Current and deferred taxes	1,071,988	(210,058)
Profit/(loss) of the period	19,836,296	45,191,800	(373,025)
Result attributable to
shareholders of the parent	19,541,420	45,191,800	(373,025)
Result for period
attributable to minorities	294,876	0	0

PRO FORMA

30/06/2023

679,949

(1,800,052)

(13,875,638)

(184,379)

(15,180,120)

55,123,137

(10,139,795)

34,362,944

(373,025)

63,793,141

861,930

64,655,070

64,360,195

294,876

PRO

FORMA

30/06/2022

923,105

(1,349,214)

(7,724,481)

(176,573)

(8,327,163)

16,529,844

(8,071,870)

25,285,435

(243,200)

25,173,046

(970,137)

24,202,909

20,829,951

3,372,958

The IFRS 9 income statement does not include capital gains in the period on equity investments and equity instruments of Euro 45.4 million.

Revenues from advisory activities were approximately Euro 0.7 million during the period.

As always, personnel costs are significantly influenced by the variable remuneration component for executive directors which, as is well known, are performance-related.

In addition to capital gains, financial income includes dividends of Euro 8.3 million, interest income of Euro 0.8 million and other income of Euro 0.6 million. Financial expenses mainly refer to interest accrued on bonds, amounting to approximately Euro 4 million, capital losses on bonds of Euro 2.3 million, other interest on loans of Euro 2.2 million, and negative value changes on value of derivative instruments amounting to Euro 1.5 million.

The consolidated net financial position of the TIP Group as at 30 June 2023, without taking into account financial assets considered from a management standpoint to be usable short-term liquidity, was negative at approximately Euro 480.2 million, compared to approximately Euro 419.3 million as at 31 December 2022. In the same period, total assets, at balance sheet values, increased from approximately Euro 1.67 billion to approximately Euro 1.90 billion. The change in the net financial position for the period essentially relates to the use of liquidity during the half-year to finalise equity investments, dividend distributions and the purchase of treasury shares, net of proceeds from divestments and dividend receipts.

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