Landi Renzo

Governance Information • Mar 31, 2022

LANDI RENZO S.p.A.

REPORT

ON CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE

pursuant to article 123-bis of the Consolidated Finance Act

(traditional administration and control model)

Issuer: Landi Renzo S.p.A.

Web Site: www.landirenzogroup.com

Financial period covered by the Report: year ended 31 December 2021

Date of approval of the Report: 29 March 2022

TABLE OF CONTENTS

1.		ISSUER PROFILE 6
2.		INFORMATION ON THE OWNERSHIP STRUCTURE (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 1, OF THE CONSOLIDATED FINANCE ACT) AS AT 31 DECEMBER 2021 6
3.		COMPLIANCE 13
4.		BOARD OF DIRECTORS 13
	4.1.	ROLE OF THE BOARD OF DIRECTORS 13
	4.2.	APPOINTMENT AND REPLACEMENT OF DIRECTORS (PURSUANT TO ARTICLE 123- BIS, SUBSECTION 1, LETTER L) OF THE CONSOLIDATED FINANCE ACT) 17
	4.3.	COMPOSITION (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2, LETTERS D) AND D-BIS) OF THE CONSOLIDATED FINANCE ACT) 20
	4.4.	OPERATION OF THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2, LETTER D) OF THE CONSOLIDATED FINANCE ACT) 28
	4.5.	ROLE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS 30
	4.6.	EXECUTIVE DIRECTORS 33
	4.7.	INDEPENDENT DIRECTORS 39
	4.8.	LEAD INDEPENDENT DIRECTOR 40
	4.9.	GENERAL MANAGER 40
5.		MANAGEMENT OF CORPORATE INFORMATION 42
6. 7.	43	COMMITTEES WITHIN THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2(D), OF THE CONSOLIDATED FINANCE ACT) 43 SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS - APPOINTMENTS COMMITTEE
	7.1.	SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS 43
	7.2.	APPOINTMENTS COMMITTEE 44
8.		REMUNERATION OF DIRECTORS – REMUNERATION COMMITTEE 44
	8.1.	DIRECTORS REMUNERATION 44
	8.2.	REMUNERATION COMMITTEE 45
9.		AUDIT AND RISK MANAGEMENT SYSTEM – AUDIT AND RISK COMMITTEE 46
	9.1.	CHIEF EXECUTIVE OFFICER 50
	9.2.	AUDIT AND RISK COMMITTEE 51
	9.3.	HEAD OF THE INTERNAL AUDIT FUNCTION 54
	9.4.	COMPLIANCE MODEL PURSUANT TO LEGISLATIVE DECREE 231/2001 57
	9.5.	AUDITING FIRM 58
	9.6.	EXECUTIVE IN CHARGE OF PREPARING CORPORATE ACCOUNTING DOCUMENTS AND OTHER CORPORATE ROLES AND FUNCTIONS 58
	9.7.	CO-ORDINATION OF PERSONS INVOLVED IN THE INTERNAL AUDIT AND RISK MANAGEMENT SYSTEM 59

10.	DIRECTORS' INTERESTS AND TRANSACTIONS WITH RELATED PARTIES 59
11.	BOARD OF STATUTORY AUDITORS 60
11.1.	APPOINTMENT AND REPLACEMENT 60
11.2.	COMPOSITION AND ACTIVITY OF THE BOARD OF STATUTORY AUDITORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTIONS 2, Letter D) and D-bis) OF THE CONSOLIDATED FINANCE ACT) 63
12.	RELATIONS WITH SHAREHOLDERS 68
13.	SHAREHOLDERS' MEETINGS 69
14.	FURTHER CORPORATE GOVERNANCE PRACTICES (PURSUANT TO ART. 123-BIS, SUBSECTION 2(A) SECOND PART OF THE CONSOLIDATED FINANCE ACT) 71
15.	CHANGES SINCE THE CLOSING OF THE REFERENCE PERIOD 71
16.	CONSIDERATIONS ON THE LETTER DATED 3 DECEMBER 2021 FROM THE PRESIDENT OF THE CORPORATE GOVERNANCE COMMITTEE 71
	TABLE 1: INFORMATION ON OWNERSHIP STRUCTURE AT THE DATE OF THIS REPORT 75
	TABLE 2: STRUCTURE OF THE BOARD OF DIRECTORS AND OF THE COMMITTEES 76
	TABLE 3: STRUCTURE OF BOARD OF STATUTORY AUDITORS 78

GLOSSARY

Below is a list of the main terms used in this Report and their definitions. Unless otherwise specified, those terms and definitions shall have the meaning indicated below. Additional terms used in the Report have the meaning allocated to them and indicated in this document. Full reference is made to the definitions of directors, executive directors, chief executive officer (CEO), management body, supervisory body, concentrated ownership and sustainable success contained in the CG Code.

Board of Statutory Auditors: the Issuer's Board of Statutory Auditors.

Board or Board of Directors: the Issuer's Board of Directors.

Borsa Italiana: Borsa Italiana S.p.A..

Civil Code: the Italian Civil Code.

Code/CG Code: the corporate governance code for listed companies approved by the Corporate Governance Committee in January 2020, publicly available on the Corporate Governance Committee website at http://www.borsaitaliana.it/comitato-corporate-governance/codice/codice.htm.

Committee/CG Committee/Corporate Governance Committee: the Italian Corporate Governance Committee for listed companies, promoted by Borsa Italiana S.p.A., ABI, Ania, Assogestioni, Assonime and Confindustria.

Consob Market Regulations: the regulations issued by Consob by virtue of Resolution 20249 of 2017 (and subsequent amendments) regarding legislation for the stock markets.

Consolidated Finance Act: Legislative Decree 58 of 24 February 1998 (the Italian Consolidated Finance Act), as amended.

Instructions to the Stock Market Regulations: the instructions to the regulations of Borsa Italiana.

Issuer, Landi Renzo or the Company: Landi Renzo S.p.A..

Issuers' Regulations: the regulations issued by Consob by virtue of Resolution 11971/1999 (and subsequent amendments) regarding legislation for issuers.

Period: the financial period covered by the Report, i.e. the financial year ended on 31 December 2021.

Related Party Transactions Regulations: the Regulations issued by Consob by virtue of Resolution 17221 of 12 March 2010 (and subsequent amendments) regarding transactions with related parties.

Remuneration Report: the report on the remuneration policy and on compensation paid, that the Company is required to prepare and publish in accordance with Article 123-ter Consolidated Finance Act and 84-quater of the Consob Issuer's Regulations.

Report: this report on corporate governance and the structure of ownership that companies are obliged to prepare in accordance with Article 123-bis of the Consolidated Finance Act for the reference Period.

Stock Market Regulations: the regulations of the stock markets organised and managed by Borsa Italiana.

1. ISSUER PROFILE

The Issuer has adopted a traditional system of governance based on the presence of three bodies: the Shareholders' Meeting, the Board of Directors and the Board of Auditors. The auditing of the accounts is entrusted by law to an auditing firm. The Issuer adheres to the CG Code, in accordance with the method described below.

The Issuer falls within the definition of small and medium-sized businesses (PMIs) under Article 1(1)(w)-quater. 1 of the Consolidated Finance Act and Article 2-ter of the Issuers' Regulations, having recorded in the Period an average market capitalisation of Euro 108,000,000. The Issuer also falls within the scope of the definition of "ownership concentration", whilst it does not qualify as a "large company" pursuant to the CG Code.

The Issuer has, as mandatorily required, published a non-financial declaration pursuant to Legislative Decree 245/2016. This non-financial declaration has been included in the annual financial report, available on the Issuer's website at the following link: https://www.landirenzogroup.com/it/bilanci_relazioni.

On determining its strategic, business and financial plans, as well as its guidelines for the internal audit and risk management system and remuneration policy, the Board of Directors included in its assessments those risks that may be of relevance in the context of medium-long term sustainability, in consideration of the interests of all of the Issuer's other stakeholders. The Company has always operated with a view to sustainable mobility and it recognises the importance of its ability to pursue the creation of value over the long-term, whilst also taking account of the interests of its shareholders. It therefore considers sustainability to be an integral and key part of the definition of its business strategies. In this context, the remuneration policy adopted by the Company is centred on its pursuit of sustainable success and it ensures that there is a significant link between compensation paid to executive directors and the achievement of targets, consisting of the creation of value over the long-term for shareholders and for the Company as a whole. For further information on procedures for the inclusion of sustainable success in the Company strategies please refer to Section 4.1, and to Section 8 of the remuneration policies and Section 9 of the internal audit and risk management system.

The following sections provide information regarding the ownership structure and describe the relative and actual methods of implementation that the Company has already adopted, namely the changes that the Company is pursuing with respect to the compliance model outlined in the CG Code.

This Report, prepared in accordance with the regulatory requirements laid down for companies listed on Euronext Milan, organised and managed by Borsa Italiana, together with all the documents referred to herein, may be downloaded from the Company's website www.landirenzogroup.com/it/, Investors section.

2. INFORMATION ON THE OWNERSHIP STRUCTURE (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 1, OF THE CONSOLIDATED FINANCE ACT) AS AT 31 DECEMBER 2021

This section 2 has been prepared pursuant to the terms and effects of Article 123-bis, subsection 1, of the Consolidated Finance Act. It should be noted that (i) any information required by the aforesaid Article 123-bis, subsection 1, letter i) of the Consolidated Finance Act is provided in the report on the remuneration policy and compensation paid and published

pursuant to Article123-ter of the Consolidated Finance Act, (ii) the information required by the aforesaid Article 123-bis, subsection 1, letter l) of the Consolidated Finance Act is provided in the chapter of the Report dealing with the Board of Directors (Section 4.1), and finally, (iii) the other information required by article 123-bis of the Consolidated Finance Act that is not mentioned in this section 2, is to be understood as not applicable to the Company.

(a). Shareholding structure (pursuant to article 123-bis, subsection 1, letter a) of the Consolidated Finance Act)

Landi Renzo's share capital is equal to Euro 11,250,000, fully subscribed and paid up, and consists of 112,500,000 ordinary shares with a nominal value of Euro 0.10 each (the "Shares"), traded on Euronext Milan organised and managed by Borsa Italiana. This information is also shown in table 1 attached to the Report. As of the date of this Report, no special classes of shares have been issued, such as shares without voting rights or with limited voting rights, nor other securities granting the right to subscribe newly issued shares.

(b). Restrictions on the transfer of securities (pursuant to article 123-bis, subsection 1, letter b) of the Consolidated Finance Act)

As of the date of this Report, the Shares are freely transferable by deed inter vivos and/or by succession mortis causa and are subject to the circulation regime envisaged for shares issued by listed companies registered under Italian law.

(c). Significant shareholdings (pursuant to article 123-bis, subsection 1, letter c) of the Consolidated Finance Act)

As of the date of this Report, on the basis of the records in the shareholders' book and in the light of the notifications received under Article 120 of the Consolidated Finance Act, the following parties, directly or indirectly, own more than 5% of the Company shares (this information is also presented in table 1, attached to this Report.

Declarant	Direct shareholder	% of issued shares	% of shares with voting rights
Trust Landi (trust regulated by Jersey law, in which trustee is Stefano Landi)	Girefin S.p.A. Gireimm S.r.l.	68.712 5.587	68.712 5.587
Aerius Investment Holding AG	Aerius Investment Holding AG	8.356	8.356

(d) Securities to which special rights are attached (pursuant to article 123 bis, subsection 1, letter d) of the Consolidated Finance Act)

As of the date of this Report, the Company's Shares are registered, freely transferable and indivisible. Without prejudice to the provisions below on loyalty shares' increased voting rights, each share confers the same proprietary and administrative rights in accordance with the applicable provisions of law and of the articles of association.

On 24 April 2015, Landi Renzo's Shareholders' Meeting amended the Company's articles of association in order to introduce a loyalty shares mechanism giving rise to increased voting rights for such shares (as provided by article 20, first paragraph, of law decree no. 91 of 24 June 2014, converted by law no. 116 of 11 August 2014), whereby, if a shareholder is registered in the specific register kept by the Company for a certain number of shares, after a vesting period of 24 months, the shareholder will be entitled to a double vote in relation to such shares.

At the following meeting held on 27 August 2015, the Company's Board of Directors approved the Rules on loyalty shares giving rise to increased voting rights which govern, inter alia, the procedures for requesting registration in the dedicated special list provided under article 127-quinquies, paragraph 2, of the Consolidated Finance Act.

On 8 May 2020, the extraordinary Shareholders' Meeting resolved to amend article 6 bis of the articles of association in order to align the statutory discipline regarding increased voting rights to Consob's recent interpretative stance, expressed in notice no. 0214548 of 18 April 2019. According to such an interpretation, statutory autonomy is not granted any discretion in defining the legal and factual preconditions leading to an increase in voting rights, since such preconditions are already defined by the legislator, as well as limited to the instances in which the shares of the company: a) are registered in a specific register and b) were held by the same party for an uninterrupted period (at least twenty-four months) starting from the date of registration in the specific register.

Therefore, on 15 May 2020, the Board of Directors resolved to amend the Rules regarding increased voting rights, in order to render such provisions consistent with the new articles of association. The amendments are aimed at ensuring that the right to increased voting rights is granted automatically, upon expiry of the twenty-four months uninterrupted holding period of the shares, starting from the registration in the specific register kept by the Company pursuant to article 127-quinquies, paragraph 2, of the Consolidated Finance Act, without the need for such a circumstance to be acknowledged by a specific notice of the intermediary authorized to keep the accounts on which financial instruments are registered.

Further details are available on the Company's website http://www.landirenzogroup.com/it/maggiorazione_del_voto.

Pursuant to article 127-quinquies of the Consolidated Finance Act, and implementing the provisions of the Company's by-laws, on 7 November 2017, increased voting rights were granted in relation to 61,495,130 and 5,000,000 ordinary shares of Landi Renzo, owned respectively by Girefin S.p.A. and by Gireimm S.r.l. and, respectively, on 8 January 2018, 7 September 2018 and 7 October 2019, in relation to additional 700 ordinary shares of Landi Renzo, 5,000 ordinary shares of Landi Renzo, and additional 1000 ordinary shares of Landi Renzo. During the Period, there were no increases to voting rights.

Pursuant to article 6-ter of the Company's articles of association, increased voting rights do not affect any other right other than voting rights, to which shareholders are entitled and may exercise by virtue of their ownership in the corporate capital, and similarly, among other things, they do not affect the calculation of the percentage of

corporate capital owned for the submission of slates of candidates for membership in the company's bodies, for exercise of liability actions pursuant to article 2393-bis of the Civil Code, and the percentage of corporate capital required to challenge, for any reason, the resolutions of the Shareholders' Meeting.

As of the date of this Report, the number of Landi Renzo's shares is 112,500,000, corresponding to 179,001,830 voting rights at the Company's ordinary and extraordinary Shareholders' Meeting.

(e) Employees' shareholdings: mechanism for the exercise of voting rights (pursuant to article 123-bis, subsection 1, letter e) of the Consolidated Finance Act)

As of the date of this Report, there are no arrangements for employees to hold shares in the Company.

Information regarding the performance shares plan 2019-2021, approved by the Shareholders' Meeting on 29 April 2019, is set out in the relevant section of the report on the remuneration policy and compensation paid published pursuant to article 123 ter of the Consolidated Finance Act.

(f) Restrictions on voting rights (pursuant to article 123-bis, subsection 1, letter f) of the Consolidated Finance Act)

As of the date of this Report, there are no restrictions on voting rights.

(g) Shareholders' agreements (pursuant to article 123-bis, subsection 1, letter g) of the Consolidated Finance Act)

As of the date of this Report, the Company is not aware of any agreements among Shareholders as per Article 122 of the Consolidated Finance Act.

It should be noted that, on March 15, 2022, the controlling shareholders of the Company — Girefin S.p.A and Gireimm S.r.l. — entered into a non-binding term sheet with Itaca Equity Holding S.p.A., laying the basis of a transaction whereby the latter will acquire a minority interest in the share capital of the Company, as long-period investor, to support the Company's expansion in both the compression and the automotive segments. The main shareholder of Itaca Equity Holding is Tamburi Investment Partners. The transaction involves a coinvestment by the Company's CEO.

(h) Change of control clauses (pursuant to article 123-bis, subsection 1, letter h) of the Consolidated Finance Act) and provisions of the articles of association on Tender Offers (OPA) (pursuant to Articles 104, subsection 1-ter and 104-bis, subsection 1).

As of the date of this Report, neither the Company nor its subsidiaries have stipulated any important agreements that take effect, are amended or are terminated in the event of any change in the Issuer's major shareholder, with the exception of:

a financing agreement entered into on 26 June 2019 by the Issuer, as "borrower", and a pool of banks, each as "lender" (the "Loan Agreement").

The Loan Agreement was executed with the aim, inter alia, to improve the financial indebtedness profile of the Issuer and cancel the Issuer's financial indebtedness arising out of the optimisation agreement (the "Optimisation Agreement") originally executed on 27 March 2017 by the banking institutions, the Issuer and its subsidiaries A.E.B. S.p.A. (later merged by absorption into Landi Renzo effective as from 21 December 2017), Eighteen Sound S.r.l. and Sound&Vision S.r.l. (later transferred to B&C Speakers S.p.A. on 11 December 2017), Safe S.p.A., Lovato Gas S.p.A. (later merged by absorption into Landi Renzo effective as from 1 December 2020) and Emmegas S.r.l. (later merged by absorption into Landi Renzo effective as from 30 October 2018). Following execution of the Loan Agreement, the Optimisation Agreement was terminated on 26 June 2019;

• a financing agreement entered into on 30 July 2020 by the Issuer, as borrower, and a pool of banks, each as "lender" (the "SACE Loan Agreement"), whereby the lending banks granted the Issuer a loan assisted by a specific warranty by SACE S.p.A., pursuant to Decree Law no. 23 of 8 April 2020 (converted by law no. 40 of 5 June 2020), providing "Urgent measures on access to credit and tax compliance for businesses, special powers in strategic sectors, as well as measures on health and labour, extension of administrative and procedural deadlines". The SACE Loan Agreement was signed in order to sustain the liquidity and financing needs of the Issuer; and
• an unsecured financing agreement entered into on 6 March 2020 by the Issuer, as borrower, and BPER Banca S.p.A., as lender (the "BPER Loan Agreement"); and
• a subsidised financing agreement, unassisted by any guarantees, for companies under Article 37 of Decree-Law No 41/2021 and the decree of the Minister for Economic Development of 5 July 2021, containing measures on State Aid in support of the economy during the current COVID-19 emergency, entered into by the Issuer and the Italian Agency for Inward Investment and Economic Development (Agenzia Nazionale per l'attuazione degli investimenti e lo sviluppo d'impresa S.p.A. "Invitalia"), pursuant to a resolution admitting the Issuer to the subsidies under the above decrees, issued by Invitalia on 28 February 2022 (the "Invitalia Loan Agreement")

The Loan Agreement and the SACE Loan Agreement provide that the lender banks will have the right to be repaid early in case (i) Mr Stefano Landi, Ms Giovannina Domenichini and Ms Silvia Landi together cease to hold -- directly or indirectly (also through fiduciary companies, trusts or similar vehicles) – at least 66.7% of the voting share capital in Girefin S.p.A., or, although holding at least 66.7% in Girefin S.p.A.'s corporate capital, they cease to exercise control over Girefin S.p.A. within the meaning of Article 93 of the Consolidated Finance Act; and/or (ii) Girefin S.p.A. ceases to hold – directly or indirectly – at least 66.7% of the voting share capital in Gireimm S.r.l., or, although holding at least 66.7% of Gireimm S.r.l.'s share capital, it ceases to exercise control over Gireimm S.r.l. within the meaning of Article 93 of the Consolidated Finance Act; and/or (iii) Mr Stefano Landi (including through trustees, trusts or similar vehicles), through Gireimm S.r.l. and Girefin S.p.A. jointly, ceases to hold – directly or indirectly – at least 50.1% of the Company's shares with voting rights, or, although holding at

least 50.1% in the Company's share capital, he ceases to exercise control over the Company within the meaning of Article 93 of the Consolidated Finance Act.

The BPER Loan Agreement provides that BPER Banca S.p.A. will have the right to be repaid early in case Girefin S.p.A. ceases to hold, directly, at least 51% of the corporate capital of the Issuer.

The Invitalia Loan Agreement provides that Invitalia will be entitled to revoke all or part of the subsidies granted, to terminate the Invitalia Loan Agreement and to obtain the repayment, as a lump-sum, of sums previously drawn down - net of any amounts previously repaid - together with outstanding interest accrued, plus default interest, if the Issuer makes de facto or legal changes to the ownership structure of the company in the absence of prior consent from Invitalia.

With regard to public tender and exchange offers, the Company articles of association do not provide for any departure from provisions concerning the passivity rule under Article 104, subsections 1 and 1-bis of the Consolidated Finance Act or for the application of the breakthrough rules under Article 104-bis, subsections 2 and 3 of the Consolidated Finance Act.

(i) Delegated powers to increase share capital, and authorisations to purchase treasury shares (pursuant to article 123-bis, subsection 1, letter m) of the Consolidated Finance Act)

The Shareholders' Meeting of 29 April 2021 authorised the Board of Directors, and the Managing Director acting on behalf of the said Board, also through its own attorneys appointed for this purpose, pursuant to, and for the purposes of, article 2357 of the Civil Code, to purchase Company's treasury shares, in quantities, at the price, and under the terms and conditions reported below:

• the shares may be purchased on one or more occasions, within the 18 months following the date of the shareholders' meeting's resolution, within the limits of the reserves available and profit available for distribution shown in the last approved financial statements, and will be recorded in the accounts in accordance with the legislative provisions and applicable accounting principles, i.e., in accordance with the provisions of article 144-bis of the Issuers' Regulations and article 132 of the Consolidated Finance Act, and in accordance with the provisions of the Stock Market Regulations and of all other applicable regulations, including those established by Regulation (EU) No. 596/2014 of the European Parliament and the Council of 16 April 2014 and its EU and national implementing regulations, including among others the assignment to the shareholders, proportionally to shares owned by each, of a put option to be exercised within a term to be set in the resolution of the Shareholders' Meeting that approves the purchase plan;
• the purchase price of each share shall be no more than 20% higher or lower than the reference price recorded by the securities on the Stock Market in the session preceding each transaction and in any event shall not exceed the higher of the price of the last independent transaction and the price of the

highest current, independent purchase offer in the trading venue where the purchase is made, even when the shares are traded in various trading venues;

the maximum number of shares purchased may not have an aggregate nominal value, including any shares held by the subsidiaries, higher than onefifth of the share capital, taking into account for this purpose also any shares owned by subsidiaries.

On the same occasion the Shareholders' Meeting also resolved:

• under Article 2357-ter, subsection 1, of the Civil Code, to authorise the Board of Directors to dispose, in whole or in part, without any time limits, of its treasury shares in portfolio, possibly even before having completed the purchases, where permitted under applicable EU and national law and regulations; shares may be sold, on one or more occasions, also through offerings to the public and/or the Shareholders, on regulated markets and/or unregulated markets, or off-market, also by offering them to the public and/or to Shareholders, by institutional placement, by placement of purchase coupons and/or warrants or as a consideration for acquisitions or public swap offers at a price that must not be more than 20% lower or higher than the reference price recorded by the security on the Stock Market in the session preceding each transaction; nevertheless, these price limits will not apply if the shares are sold or assigned for no consideration to employees, including executives, executive directors or collaborators of Landi Renzo and its subsidiaries in the context of remuneration plans based on the assignment of financial instruments pursuant to Article 114-bis of the Consolidated Finance Act as an incentive to them;
• under Article 2357-ter, subsection 3, of the Civil Code, to authorise the Board of Directors to make all the accounting entries necessary or opportune, as regards transactions involving treasury shares, in compliance with those legal provisions in force and with the applicable accounting principles.

The term of validity of the authorisation approved by the Shareholders' Meeting of 29 April 2021 will therefore expire on 29 October 2022.

As of the date of this Report, the Company has neither purchased nor disposed of any treasury shares.

(l) Management and coordination (pursuant to articles 2497 et seq. of the Civil Code)

Landi Renzo deems that Girefin S.p.A. does not carry out management and coordination activities, operating as the former does completely free of any entrepreneurial or corporate control by the latter controlling company. For example, Landi Renzo independently manages its treasury and business relations with customers and suppliers, and independently establishes its own industrial plans and/or budgets.

The information requested by Article 123-bis, first paragraph, letter i), of the Consolidated Finance Act (benefits for directors in case of resignation, dismissal or termination of employment following public tender offers) is contained in the section of the Report devoted to the remuneration policy (Section 8.1).

The information requested under Article 123-bis, first paragraph, letter l), first part of the Consolidated Finance Act (appointment and replacement of directors if different from requirements under laws and regulations) is illustrated in the section of the Report devoted to the Board of Directors (Section 4.2)

The information requested by Article 123-bis, first paragraph, letter l) second part of the Consolidated Finance Act (changes to the articles of association other than those required under the laws and regulations) is described in the section of the Report devoted to the Shareholders' Meeting (Section 13).

3. COMPLIANCE

Landi Renzo has complied with the provisions and recommendations of the CG Code drafted by the Corporate Governance Committee, publicly available on the Corporate Governance Committee's website at page http://www.borsaitaliana.it/comitato-corporategovernance/codice/codice.htm.

The Issuer continues to comply with the Code, save for some limited discrepancies that have been duly disclosed as provided by the Code.

Neither the Issuer nor its subsidiaries of strategic importance, are subject to provisions of any laws other than Italian law affecting the Issuer's corporate governance structure.

4. BOARD OF DIRECTORS

4.1. ROLE OF THE BOARD OF DIRECTORS

The Board of Directors is the corporate body responsible for the governance of the Company and has the powers assigned to it by law and by the articles of association. It is organised and operates in such a way as to ensure the effective and efficient performance of its duties. Its Directors act and adopt resolutions knowledgeably and autonomously, in pursuit of the aim of creating value for the Company's Shareholders and reporting management performance at Shareholders' Meetings.

The Board of Directors acts in pursuit of sustainable success for the Issuer, focusing on the creation of value for shareholders over the medium-long term.

In fact, the Board of Directors plays a central role in the context of the company organisation and it is responsible for determining and pursuing the strategic, business and financial objectives for the Company, as well as verifying the existence of the controls necessary to monitor performance by the Company.

In accordance with article 18 of the Company articles of association, the Board of Directors is vested with the widest powers for the day-to-day and extraordinary management of the Company and has the power to carry out all the acts it considers expedient or helpful for the

achievement of its corporate purpose, only excluding those for which the Shareholders' Meeting is solely responsible by law or under the articles of association.

The Board of Directors is also vested with responsibility for the following:

• (i) merger resolutions in the cases contemplated in Articles 2505 and 2505-bis of the Civil Code, including those mentioned for demergers in Article 2506-ter of the Civil Code;
• (ii) opening and closing secondary offices;
• (iii) reducing the share capital in the event of the withdrawal of a shareholder;
• (iv) adapting the articles of association in accordance with new provisions of law;
• (v) identifying the Directors with the power to represent the Company;
• (vi) moving the registered office within the country; and
• (vii) appointing and discharging the executive in charge of preparing corporate accounting documents.

Pursuant to Article 17 of the articles of association, the quorum for the Board of Directors is the majority of its members in office and it takes valid decisions by way of a favourable vote of the absolute majority of directors in attendance. In case of an equality of votes, the chairman of the meeting shall have the casting vote.

Pursuant to Article 19 of the articles of association, the Board of Directors can appoint an executive committee, choosing the members of that committee from amongst its own members and establishing the number of members and their tasks, save for those statutorily reserved to the Board. The Board may also appoint one or more managing directors, chosen from amongst its members and vested, jointly or severally, with all or part of the Board's tasks, save for those statutorily reserved to the Board. The Board of Directors may also establish internal advisory or steering committees, establishing the number of members of those committees and the functions allocated to them, in accordance with laws applicable to joint stock companies listed on regulated markets.

The Board of Directors may also delegate the execution of corporate resolutions to one or more directors.

The Board of Directors appoints an executive responsible for the preparation of accounting documents, chosen from amongst managers of the company with proven accounting and financial experience, granting them adequate powers and the resources to carry out their tasks in accordance with the law. In accordance with Article 154-bis, subsection 4 of the Consolidated Finance Act, the Board of Directors ensures that the executive in charge of preparing corporate accounting documents has sufficient powers and resources to perform the duties assigned to him/her by law and that administrative and accounting procedures are observed in actual practice

In urgent circumstances relating to transactions with related parties that are not under the responsibility, or subject to the authorisation, of the shareholders' meeting, the Board of

Directors will have the right to approve these transactions even where they are implemented through subsidiaries, departing from the customary provisions of the internal guidelines for related-party transactions adopted by the Company, subject to compliance with and at the conditions set out in the guidelines.

With the assistance of internal board committees, the Board of Directors is also responsible for the following activities:

• examining and approving the business plan for the Issuer and its group, also based upon analysis of matters relevant to the generation of value over the long-term;
• periodic monitoring of the implementation of the business plan, and assessment of general performance, making periodic comparisons between results achieved and those programmed;
• defining the nature and level of risk compatible with the strategic objectives of the Issuer, including in its assessments all elements that may be of relevance in the context of sustainable success for the Issuer;
• defining the corporate governance system for the Issuer and for the structure of its group;
• evaluating the adequacy of the organisational, management and accounting structure of the Issuer and its subsidiaries of strategic relevance, with particular reference to the internal audit and risk management system. Please refer to Section 9 for detailed information;
• resolving on transactions by the Issuer and its subsidiaries, that are of significant strategic, economic or financial relevance for the Issuer, establishing the general criteria for the identification of transactions of material relevance;
• adopting, upon proposal by the Chairman and in agreement with the Managing Director, a procedure for the internal management and external communication of documents and information relating to the Issuer, with particular reference to privileged information. Please refer to Section 5 for detailed information.

For the purpose of implementing Article 4 of the SG Code, at a meeting held on 15 March 2021 the Board of Directors completed a successful review of the size, composition and workings of the Board of Directors, the Audit and Risk Committee and the Remuneration Committee, including in relation to independent directors. To this end, starting from 2018, all Directors in office are asked each year to complete a questionnaire to evaluate the workings and efficiency of the Board of Directors and of the Committees, as well as their size and composition. The results following the completion of the questionnaire are submitted to the Board of Directors by the Managing Director in charge of the board review, to ensure its efficacy. The results of this self-evaluation questionnaire are also brought to the attention of the Remuneration Committee and the Audit and Risk Committee in relation to matters for which they are respectively responsible.

Moreover, at the meeting on 15 March 2021, the Board of Directors, also on the basis of reports from the executive manager in charge of supervising the internal audit and risk management system and from the Chairman of the Audit and Risk Committee, reviewed the adequacy of the

general organisational, administrative and accounting structure of the Issuer and that of its strategically relevant subsidiaries, in relation to the internal audit system and the management of conflicts of interest and has approved the Company's overall system of governance. In addition to the delegation of powers and functions, including provision for the formation of committees within the Board of Directors, of which further mention will be made below, this system also includes rules of procedure governing transactions with related parties and transactions in which a Director has an interest. The Issuer's Board of Directors has also identified the subsidiaries that are strategically relevant based on criteria which take into account the revenues, independence of production, research, development and innovation of products, as well as the range of products, the positioning of the product and of the brand. In light of the above-mentioned criteria, the Board of Directors identified Landi Renzo Polska Sp.Zo.o as a strategically relevant company.

The Board of Directors evaluated general performance in operations, with regard in particular to the information received from the Company's delegated bodies and periodically comparing the results achieved with those forecasted.

The Board of Directors examined and approved in advance the transactions of significant strategic, economic and financial importance for the Issuer, carried out by the Issuer and its subsidiaries.

Section 9 below includes information regarding the procedure followed by the Board in carrying out intra-group transactions and transactions with other related parties.

The Board of Directors adopted qualitative and quantitative criteria to identify its own and its subsidiaries' significant transactions. Qualitative criteria refer to transactions concerning the acquisition or disposal of holdings, the setting up of new companies and/or joint ventures, of business units, assets and contributions in kind, corporate investments and/or divestiture, the raising of loans, the entry into and/or exit from geographical markets and/or strategic types of business. Quantitative criteria refer to transactions other than those described above, whose value exceeds the quantitative limit of the powers conferred to the Managing Director.

The Board of Directors adopts resolutions on the significant transactions identified as above, both of a qualitative and quantitative nature, based on the information and reports provided from time to time by the Managing Director.

Article 14 of the articles of association of the Company states that the Directors are subject to the non-competition rule laid down in Article 2390 of the Civil Code unless they are exonerated from this rule by the Shareholders' Meeting. As of the date of this Report, the Shareholders' Meeting has not given permission for any exceptions to the non-competition rule.

During the 2021 financial year the Board of Directors did not consider it necessary or advisable to prepare reasoned proposals to submit to the Shareholders' Meeting for the definition of a corporate governance system that is more functional to company requirements. For further information please refer to Section 13 of this Report.

On 12 November 2021 the Board of Directors approved the policy for the management of dialogue with all shareholders. For further information please refer to Section 12 of this Report.

Below is a description of further duties for the Board of Directors regarding: its composition (Paragraph 4.3), operation (Paragraph 4.4), appointment and self-assessment (Paragraphs 4.2 and 7.1), remuneration policy (Paragraph 8); internal audit and risk management system (Paragraph 9).

4.2. APPOINTMENT AND REPLACEMENT OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 1, LETTER L) OF THE CONSOLIDATED FINANCE ACT)

The Shareholders' Meeting establishes the number of members of the Board of Directors, at the time of their appointment, within those limits set out in subsection 4.3 below. The directors shall hold office for a period of no more than three financial years, and they may be re-elected.

Under Article 14 of the Company's articles of association, regarding the appointment and replacement of the Board of Directors and/or its members, establishes that the members of the Board of Directors are elected from lists of candidates according to the following procedures, in compliance with legislation, including regulatory, on gender balance in force at the time. Shareholders holding, even jointly, at least 2.5% of the share capital representing shares that confer voting rights at shareholders' meetings held to deliberate the appointment of the members of the governing body, or such other proportion of the share capital as may be determined at any one time by Consob, in accordance with the rules applicable to the Company, may present a list of candidates, the number of which shall not be greater than the number of directors to be elected, where candidates are listed in a progressive order. This level of ownership is consistent with that determined by Article 144-quater of the Issuers' Regulations for companies with a market capitalisation of up to Euro 1 billion. The notice calling the shareholders' meeting will state the level of ownership required to present a list of candidates.

Each shareholder, the shareholders adhering to a shareholders' agreement relevant under Article 122 of the Consolidated Finance Act, the parent company, the subsidiary companies and companies subject to joint control, may not present or join in the presentation of more than one list, not even through a third party or a trust company, nor may they vote for different lists, and each candidate may only stand in one list, otherwise they will be adjudged ineligible. Candidatures and votes expressed in breach of this restriction shall not be attributed to any list.

Lists must be deposited at the Company's registered office at least 25 (twenty-five) days prior to the date scheduled for the Shareholders' Meeting, without prejudice to other forms of publicity provided for by law, including regulatory provisions, in force at the time. The notice calling the shareholders' meeting will provide instructions to allow remote deposit of the list by distance communication. Ownership of the amount of shares required to present a list must be proven with the methods and at the terms required under the law and regulatory provisions in force at the time. Should mandatory gender allocation criteria be applicable, each list that presents at least 3 (three) candidates shall include a number of candidates of the least represented gender equal to the minimum requested by applicable law and regulatory provisions in force at the time. Those documents provided for by article 14 of the Issuer's articles of association and by the applicable provisions of law and regulations shall be presented together with each list.

Within the above terms, the following must be deposited together with each list: (i) information regarding the identity of the shareholders that presented the list and the percentage of ownership they hold in the aggregate; (ii) the declarations whereby each candidate accepts to be a candidate and attests, under his or her own responsibility, that no circumstances giving rise to his or her ineligibility or incompatibility exists and that he or she meets all the requisites under the law to accept the office; (iii) any candidate's declaration whereby the candidate attests, under his or her own responsibility, that he or she meets the independence requirements in accordance with applicable laws and regulations; and (iv) the curricula vitae of each candidate, containing exhaustive information on the candidate's personal and professional background, and listing any offices held by the candidate on the governing or

supervisory bodies of other companies. Those lists presented without observing the aforesaid provisions shall be deemed as not presented.

Each eligible person has the right to vote for one list. When voting has been completed, those candidates from the two lists who have obtained the greatest number of votes shall be elected, according to the following principles:

• (a) from the list that has obtained the highest number of votes (the "Majority List"), the same number of directors shall be elected as make up the Board of Directors, as established beforehand by the Shareholders' Meeting, minus one; members are taken, in accordance with the said numerical limitation, on the basis of the numerical order in which they appear in the list;
• (b) from the list that has obtained the second largest number of votes, provided that it is not connected in any manner, even indirectly, with the shareholders that presented or voted for the Majority List (the "Minority List"), one Director is taken, and that Director shall be the one who appears first, in numerical order, on that list.

The candidate chosen as number one candidate on the Majority List shall be elected Chairperson of the Board of Directors.

Unless otherwise provided for, in the event of parity of votes, the senior candidate shall be elected.

In the event that following the election of candidates in the aforesaid manner, a number of independent directors have not been appointed, in accordance with the provisions of the law governing auditors, equal to the minimum number established by law in relation to the overall number of members of the Board of Directors, then the first non-independent candidate elected in numerical order from the Majority List, shall be replaced by the first independent candidate (in numerical order) not elected taken from the same list, or in the absence thereof, by the first independent candidate (in numerical order) not elected taken from the other lists, according to the number of votes that each candidate has obtained. This replacement procedure shall be followed until the number of independent directors – pursuant to the legal provisions governing statutory auditors - elected to the Board of Directors is at least equal to the legal minimum. Finally, should this procedure fail to provide the aforesaid result, then replacement shall be established by a resolution passed by the relative majority of the Shareholders' Meeting, subject to the presentation of candidates possessing the aforesaid requirements.

In addition, in the event that following the election of candidates in the aforesaid manner, a composition of the Board of Directors has not been reached in accordance with the provisions of the law on gender balance in force at the time, then the last candidate of the most represented gender elected in a numerical order from the Majority List shall be replaced by the first candidate of the less represented gender (in numerical order) not elected taken from the same list, or in the absence thereof, by the first candidate of the less represented gender (in numerical order) not elected from the other lists, according to the number of votes that each candidate has obtained. This replacement procedure shall be followed until a composition of the Board of Directors is reached which complies with the laws on gender balance in force at the time. Finally, should this procedure fail to provide the aforesaid result, then replacement shall be established by a resolution passed by the relative majority of the Shareholders' Meeting, subject to the presentation of candidates belonging to the less represented gender.

Should the first two or more lists obtain the same number of votes, then the shareholders' Meeting shall vote again, this time for those lists only. The same rule shall apply in the event of parity between those lists coming second in terms of numbers of votes that are not connected, directly or indirectly, with those shareholders who have presented or voted for the competing list.

In the event of further parity between lists, the list presented by shareholders possessing the majority shareholding, or subordinately by the list presented by the greatest number of shareholders, shall prevail. In all aforementioned cases, the composition of directors shall secure compliance with the aforesaid requirement of gender balance, where so required by law provisions and regulations in force at the time.

In the event of only one list, or no list, being presented, the Shareholders' Meeting shall decide according to the majorities established by law, without having to observe the abovementioned procedure, without prejudice for compliance with the gender balance requirement specified above, where required by law provisions and regulations in force.

For the purpose of the division of those directors to be elected, no account shall be taken of lists that have failed to gain a percentage of votes at least equal to one half of the number required by the present articles of association, or by Consob, for the presentation thereof.

If, during the course of the year, one or more Directors are missing, then in order to ensure that the majority continues to be constituted by directors appointed by the Shareholders' Meeting, the following procedure shall be followed, in accordance with article 2386 of the Civil Code:

• (a) the Board of Directors shall arrange for the replacement of the missing director from among those belonging to the same list as the latter, and the Shareholders' Meeting shall vote, in accordance with the legally-required majorities, in observance of the same principle;
• (b) in the event that the aforesaid list does not contain candidates not previously elected, or candidates with the called-for requirements, or for any reason it is not possible to observe (a) above, then the Board of Directors shall arrange for the replacement, and the Shareholders' Meeting shall vote for said replacement, in accordance with the legal majorities of those without a list vote.

In any case, the Board of Directors and the Shareholders' Meeting shall proceed to make the appointment in order to ensure the minimum number of independent directors required by the law in force at the time, subject to compliance with the aforementioned gender balance requirement, where so prescribed by law and regulatory provisions in force at the time.

However, should the majority of directors cease to exist, then the entire Board of Directors shall be deemed as having resigned, with effect from its reconstitution.

At least one of the members of the Board of Directors, or two if the Board is composed of more than seven members (or of a different minimum number required by the applicable regulation), shall satisfy the criteria of independence called for in the case of statutory auditors by the law and regulatory provisions in force at the time.

The independent director, pursuant to the provisions of the law governing statutory auditors, who subsequent to his/her appointment, no longer satisfies the requirements of independence,

shall immediately notify the Board of Directors of this circumstance, and shall no longer hold office. A director's loss of independence, as defined above, shall not automatically lead to loss of office if the said requirement is satisfied by the minimum number of directors as established by the laws in force, or by the codes of conduct that the Company has declared it abides by.

It should be noted that the Board of Directors, having considered the structure and the size of the Issuer's Group, has not adopted any succession plan for executive directors as it deems that the replacement procedures adopted are adequate to guarantee the continuity and certainty of corporate governance.

At the date of this Report, there are no provisions of the articles of association that admit the presentation of a list by the outgoing Board for the renewal of the management body, and the Board of Directors terminating at the date of approval of the financial statements at 21 December 2021, has not submitted a list for that purpose.

Please refer to Section 7 for information on the role of the Board of Directors and the board committees in processes for the self-assessment, appointment and succession of directors.

4.3. COMPOSITION (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2, LETTERS D) AND D-BIS) OF THE CONSOLIDATED FINANCE ACT)

Under Article 14 of the articles of association, the Company is governed by a Board of Directors comprised of five to nine members, who need not be shareholders, as previously decided by the Shareholders' Meeting at the times of the appointment of the Board of Directors.

On 29 April 2019 the Shareholders' Meeting appointed the Board of Directors, setting the number of its members at nine. The Directors will serve until the approval of the financial statements for the period ending on 31 December 2021.

The members of the Board of Directors have been elected from two different lists: a) eight Directors were elected from list number 1), presented jointly by the majority shareholders Girefin S.p.A. and Gireimm S.r.l., while b) one Director was elected from list number 2), presented by the minority Shareholders Aerius Investment Holding AG.

List number 1) set out the following candidates:

• Stefano Landi, born in Reggio Emilia, on 30 June 1958, Chairman;
• Cristiano Musi, born in Parma on 27 April 1974, Director;
• Giovannina Domenichini, born in Casina (Reggio Emilia), on 6 August 1934, Director;
• Silvia Landi, born in Reggio Emilia, on 8 June 1960, Director;
• Vincenzo Russi, born in Lanciano, on 1 January 1959, Independent Director;
• Sara Fornasiero, born in Merate (Lecco), on 9 September 1968, Independent Director;
• Paolo Emanuele Maria Ferrero, born in Turin on 13 February 1955, Director;
• Angelo Iori, born in Reggio Emilia, on 11 December 1954, Director; and

Ivano Accorsi, born in Correggio (Reggio Emilia), on 14 July 1938, Independent Director;

List number 2) set out the following candidates:

• Anton Karl, born in Mistelbach (Austria), on 16 March 1976, Independent Director; and
• Mark Kerekes, born in Lienz (Austria), on 30 May 1976, Director;

The candidates from list number 1) were elected with 132,990,260 favourable votes, whilst the candidate from list number 2) was elected with 13,101,545 favourable votes. With regard to the proposed lists, no dissenting votes were cast. The voting share capital in attendance at the shareholders' meeting represented 81.62% of the entire share capital.

Please note that, as communicated to the public by means of a press release on 19 October 2020, during the Period, Mr. Anton Karl resigned from the office of director of Landi Renzo because of work responsibilities which were incompatible with the commitments required for the performance of his duties. On the date of the resignation, Mr. Anton Karl was a nonexecutive and independent member of the Board of Directors, and he did not hold any office within the internal committees of Landi Renzo.

On 13 November 2020, the Board of Directors, with a resolution approved by the Board of Statutory Auditors, appointed Mr. Dario Patrizio Melpignano as non-executive and independent director of the Company, via cooptation (cooptazione) pursuant to Article 2386 of the Civil Code. The appointment was approved by the management body considering the fact that the Director leaving the office, Mr. Anton Karl, was elected from the minority list submitted by Aerius Holding AG, which just included one additional candidate, who was not willing to accept the office of Director of Landi Renzo. Upon his appointment, Mr. Dario Patrizio Melpignano declared and attested, under his own responsibility, that no circumstances giving rise to his ineligibility or incompatibility existed, that he met all the requirements under the law to accept the office, including good standing requirements (requisiti di onorabilità) and the independence requirements called for in the case of statutory auditors. The co-opted Director shall remain in office until the next Shareholders' Meeting.

Therefore, as of the date of this Report, the Board of Directors of the Company has nine members. The members of the Board of Directors serving as of the date of this Report are shown in the table below (for additional information, see table 2, attached to this Report).

Full surname	Title	Place and date of birth	Director Type	Audit and Risk Committee	Remuneration Committee
	Stefano Landi Chairman of the Board of Directors	Reggio Emilia, 30 June 1958	Executive
Cristiano Musi Managing	Director	Parma, 27 April 1974	Executive
Giovanna Domenichini	Honorary Chair of the Board of Directors	Casina (Reggio Emilia), 6 August 1934	Non-Executive
Silvia Landi	Director	Reggio Emilia, 8 June 1960	Non-Executive

Vincenzo Russi	Director	Lanciano, 1 January 1959	Non-Executive and Independent1	Member	Member
Sara Fornasiero	Director	Merate (Lecco), 9 September 1968	Non-Executive and Independent1	Chair	Chair
Paolo Ferrero Director		Torino, 13 February 1955	Non-Executive
Angelo Iori	Director	Reggio Emilia, 11 December 1954	Non -Executive	Member	Member
Dario Patrizio Melpignano	Director	Milano, 15 January 1968	Non-Executive and Independent1

Directors Sara Fornasiero, Vincenzo Russi, and Dario Patrizio Melpignano meet the qualifications required for Independent Directors, in accordance with Article 148 of the Consolidated Finance Act and Article 2 of the CG Code.

The purpose of the presence of three Independent Directors is to provide further safeguards of good corporate governance by means of discussion and debate among all the Directors. The contribution made by the Independent Directors also allows the Board to verify that cases of potential conflict between the interests of the Company and its majority shareholder are evaluated with an appropriate degree of independent judgment.

The members of the Board of Directors of the less represented gender are one-third of the members of the Board of Directors.

All members of the Board of Directors are domiciled at the Company's registered office by virtue of their office. There is a family relationship between Directors Giovannina Domenichini, Stefano Landi and Silvia Landi, in that Stefano Landi and Silvia Landi are Giovannina Domenichini's children.

Each Director's personal and professional history are briefly set out below in accordance with Article 144-decies of the Issuers' Regulations.

Stefano Landi. A shareholder of the Issuer, he was Managing Director from 1987 to 2010. From 24 April 2013 until 28 April 2017 he served both as Managing Director and as Chairman of the Board of Directors, in addition to holding offices in other companies of the Landi Renzo group and since April 2017 he has been serving as Chairman of the Board of Directors. In 2006 the specialised press included Stefano Landi among the top ten managers in the automotive sector and in December 2010 he received the award of E&Y "Entrepreneur of the Year". From July 2010 to July 2013 he was in office as President of the Industrial Association of the Province of Reggio Emilia, from January 2014 to December 2020 he was in office as Chairman of Reggio Emilia Chamber of Commerce and in December 2020 he was appointed as Extraordinary Commissioner of Reggio Emilia Chamber of Commerce. He also holds the office of director in Safe S.p.A. and Safe&Cec S.r.l. and is Chairman of Metatron.

Cristiano Musi. Was awarded a degree in law by the University of Parma and later earned an MBA from the Business School of the Milan Politecnico University. He started his professional career in marketing, working in several companies, and then joining an international investment

1 Independent as per Article 148 of the Consolidated Finance Act and Article 2 of the CG Code.

bank after his MBA. From 2005 to 2011, Mr. Musi worked for international and national banks, progressing in his profession, which focused mainly on business finance and structured finance. In 2012 he was appointed general manager of Dulevo International S.p.A. and Lampogas S.p.A., where he was responsible for coordinating the first phase of the reorganisation until the change of control caused by the purchase by a leading international private equity fund. Following this change of control, Mr. Musi became a member of the board of directors of Lampogas' holding company and general manager of the group, serving as Chairman, Managing Director, and Director of several of the group subsidiaries. In December 2016, he was elected as general manager (direttore generale) of Landi Renzo and remained in charge until April 2017, when he was appointed Managing Director. At present, he is also Managing Director of Safe S.p.A. and of Safe&Cec S.r.l. and Director of Metatron.

Giovannina Domenichini. In 1954 Giovannina Domenichini founded Officine Renzo Landi together with her husband. Subsequently, following the Issuer's incorporation, she took on the position of Sole Director and in 1987 became the Chair of the Board of Directors. Since 22 April 2010 she has been non-executive Honorary Chairman of the Board of Directors. In 1990 she was awarded the honour of Commendatore dell'ordine al merito della Repubblica Italiana and, on 19 October 2011, the honour of Cavaliere del Lavoro.

Silvia Landi. She has been an employee of the Issuer since 1978, and in the role as public relations officer since 1987. Silvia Landi also has served as a member of the Board of Directors of Girefin S.p.A. since 2002.

Vincenzo Russi. Co-Founder and Chiex Executive Officer of e-Novia S.p.A., the "Farm of Enterprises" founded in Milan in 2015, which generated more than 30 business projects, among which eShock S.r.l., BluBrake S.r.l., Y.Share S.r.l., SmartRobots S.r.l., YAPE S.r.l., HiRide S.r.l., Weart S.r.l and BLIMP S.r.l.. These are all innovative Italian businesses with an international presence in the areas of Collaborative Mobility, Humanized Machines and Augmented Human. He has been working in the ICT sector for more than 35 years, and for more than 20 he devoted himself to management consulting and business management. He was also Chief Digital Officer of Messaggerie Italiane, the first Italian group in book publishing and distribution, and Vice President of eDigita, first digital distribution platform for Italian book publishing. Previously, he was Chief Operating and Technology Officer at CEFRIEL, and then General Manager, as well as professor at the International MBA of the School of Management of the Politecnico di Milano and of Software Engineering at Politecnico di Torino, Chiex Executive Officer at Fila Corp. in Boston, Partner of Ernst & Young Consulting and Vice President at Capgemini. He commenced his career in the laboratories of Selenia Spazio and, later, in the international laboratories of Olivetti in Italy and in Silicon Valley.

Sara Fornasiero. At present, she holds the office of Statutory Auditor of Leonardo S.p.A., Chairman of the Board of Statutory Auditors and of the Supervisory Body ("Organismo di Vigilanza") of Arnoldo Mondadori Editore S.p.A., Alternate Auditor of Avio S.p.A. and UnipolSai Assicurazioni S.p.A.. She is Auditor of Alenia Aermacchi S.p.A., of Atos Italia S.p.A. of Bricoman Italia S.r.l., of Fondazione Conad ETS, Leonardo Logistics S.pA. and of MBDA Italia S.p.A., and a member of the Supervisory Body ("Organismo di Vigilanza") of Alenia Aermacchi S.p.A., Atos Italia S.p.A., Bricoman Italia S.r.l. and Philips Espresso Industries S.r.l.. Selfemployed since 2016, she is involved in projects in the field of sustainability, corporate governance, risk management, anti-bribery and corruption, and sustainability projects for listed and unlisted companies. Since 1995 she has been enrolled in the Register of Auditors and since 1996 she has been enrolled in the National Register of Certified Chartered Accountants

and Auditors in Milan. She is a member of the Italian Association of Internal Auditors (AIIA), NedCommunity (community of non-executive and independent directors), co-chair of the Reflection Group "Women, Diversity and Disruption" ("Donne, Diversity e Disruption") and associate of Fuori Quota (not-for-profit organisation that brings together women who are involved in proactive actions for the empowerment of female talent). She is also a member of the "Governance of Listed Companies" and "Compliance and Organisational Models" committees of the Board of Certified Chartered Accountants and Auditors of Milan. With a degree in Economics from the Università Cattolica del Sacro Cuore in Milan, she began her work experience in KPMG S.p.A. in 1993 as statutory auditor; from 1995 to 1998 in the due diligence field; from 1998 to 2001 in the Forensic Accounting department; from 2001 in the Corporate Responsibility/Sustainability department; and from 2004 in the Risk & Compliance department. From 2006 to 2015 she was a part of the KPMG Quality & Risk Management function as Senior Manager.

Paolo Ferrero. With a degree in mechanical engineering from the Politecnico di Torino, he acquired extensive experience in the automotive sector, having worked in numerous roles internationally. Throughout his career, Paolo Ferrero was responsible for the development and industrialisation of several types of transmissions and many diesel, gasoline and gas motors used both in passenger cars and mid-heavy duty vehicles. After starting in the racing sector (in Abarth, a division of the Fiat Group) he was Chief Executive Officer and General Manager for Italy of the joint-venture Powertrain between Fiat and General Motors (2001-2005), Vice President for engineering of Fiat Powertrain Technologies (2006-2008), Powertrain Senior Vice President of Chrysler (2009-2011), General Manager for Mercosur and Vice President of Product Engineering for South America of Fiat-Chrysler Powertrain (2011-2014). Paolo Ferrero has also held various offices on boards of companies of the FIAT Group. Following practice in advising and consultancy services, in 2017 he joined the Landi Renzo group, as Chief Technology Officer and Vice President for Strategic Business Development. Commencing from the beginning of the Period he has continued to collaborate with the Issuer as Automotive Independent Senior Advisor in support of the Chairman and Managing Director for strategies and special projects.

Angelo Iori. After completing his studies in accounting in 1974, he began his professional career with the Issuer in the administrative and commercial area in the automotive and car LPG and CNG systems industry. In 1979 Angelo Iori continued his activity at Autosonik S.p.A. and in 1985 he re-joined the Company as sales and marketing manager until 2003. In 2004 he was appointed CEO of MED S.p.A., a company in the Landi Renzo group incorporated in 2010. From 2010 to 2013 he dealt with activities in the field of operations for both the Issuer and Lovato Gas S.p.A. (merged by absorption in Landi Renzo with effectiveness as of 1 December 2020), also holding the position of director of operations for the Landi Renzo group. From 2014 to 2016 he was Sales and Marketing Aftermarket Director at the Issuer and at Lovato Gas S.p.A., A.E.B. S.p.A. and Emmegas S.r.l.

Dario Patrizio Melpignano. Formerly co-founder and director of DNM (which later became Inferentia DNM and then FullSix), one of the main European operators in the digital sector in the 2000s, from 2007 he devoted himself to the creation of a platform named Neosperience Cloud, functional to the creation of omnichannel services which innovate the so-called digital experience. His initial objective with Neosperience Could was to overcome the limitations of the fragmented smartphone market, allowing apps to be developed easily from a single design. Since 2011, he has developed the platform in order to transform business marketing and sales, democratizing the creation of apps and web services for a wide range of different uses, winning

the Red Herring Top 100 (firs in Europe and then worldwide), gaining international recognition from Gartner Cool and winning the QUID Innovation Italy and Gran Prix Pubblicità Italia awards. In 2016 he co-founded Neosurance, a spin-off of Neosperience dedicated to the insurtech sector, which became in less than one year the reference for innovation in the insurance sector in Europe, winning numerous awards. In 2017 he co-founded Bikevo, a sportech start-up dedicated to training cyclists, as well as WizKey, dedicated to legal-tech for the blockchainintegrated sale and purchase of credits. In 2018 he embarked on an ambitious development path aimed at the blending of empathy in technology through artificial intelligence. Neosperience is included among the new pioneers of AI and listed as the only European benchmark, along with Adobe, IBM and Microsoft. On 20 February 2019, Neosperience makes its debut on the Italian stock exchange in an IPO that registers a 38,6% increase on the first day. During 2020, the company's development accelerated with a number of acquisitions of software vendors which were homogeneous in their values and complementary in their offerings, creating the largest national hub dedicated to the development of application solutions in the digital field. With the defeatcovid.org project, he donates to the global community the first machine learning model that automates the diagnosis of Covid-19 from radiographic reports, subsequently building on such an experience with the launch of a business unit of the company dedicated to healthtech. On continuing his activities he is involved in an ambitious project with Neosperience intended to support an increasing number of companies in Italy and abroad in the creation of their digital products and in the optimization of operational processes using digital platforms and advanced Artificial Intelligence and Machine Learning techniques.

From the closing date of the Period there have been no changes in the membership of the Company's Board of Directors.

To be noted that, as to diversity policies pursuant to Article 123-bis, paragraph 2(d-bis) of the Consolidated Finance Act, on 14 March 2019, the Board of Directors of the Company has approved a diversity policy applicable to the Board of Directors, which includes the following principles:

• gender diversity within the Board of Directors must be consistent with the applicable regulations and therefore must ensure that at least one third of the members are members of the less represented gender;
• each member must meet the requirements of good character under Decree of the Ministry of Justice no. 162 of 30 March 2000, and Article 148(4) of the Consolidated Finance Act, as incorporated by reference in Article 147-quinquies of the Consolidated Finance Act;
• at least one of the members of the Board of Directors, or at least two if the Board of Directors has more than seven members (or any such other minimum number provided for by applicable law), must meet the independence requirements;
• executive directors cannot serve in office as (a) an executive director of another listed company, whether Italian or foreign, bank or financial company, or (b) non-executive director or statutory auditor (or member of another supervisory body) in more than three of the foregoing companies;
• in addition to the office held in the Company, a non-executive director cannot hold office: (a) as executive director of another listed company, whether Italian or foreign, bank or financial company and non-executive director or statutory auditor (or member of another supervisory body) in more than three of the foregoing companies, or (b) as non-executive director or statutory auditor in more than six of the foregoing companies;

• each member must not have any of the reasons for ineligibility, incompatibility or expiry, under Article 14 of the Company articles of association and the applicable provisions of law, including Article 17(5) of Legislative Decree no. 39 of 27 January 2010 on legal audit; and
• to ensure a plurality of approaches and views, as well as an adequate degree of efficiency when analysing the items and subject matters on the agenda, the members should have an adequate degree of diversity and heterogeneity in terms of age, skills and experience; professionals who are sufficiently familiar with the peculiar issues affecting listed companies and international groups as well as professionals who have a strong connection to the industrial sector in which the Company operates should be favoured to the extent possible.

The Company believes that fostering gender parity and offering equal opportunities is one of the key components of the corporate structure and, to such end, gives great importance to the professional growth and personal achievements of each member of its organisation. The Company promotes conditions for an inclusive working environment, open to diversity, both in terms of recruitment and in its operating structure, so as to obtain a corporate organization which focuses on equal job opportunities and equal treatment at every level (for example facilitating the use of part-time workers and smart-working where requested or necessary). The Company also guarantees gender-diversity at all levels of the company structure, maintaining equal pay for different genders. During the 2022 financial year the Company also intends to continue to evaluate whether additional specific measures should be adopted aiming to further coordinate such components.

Full name	Company in which an external position is held	Title
Giovannina Domenichini	Girefin S.p.A.	Chairman of the Board of Directors
	Immobiliare L.D. Parma S.r.l.	Sole Director
Stefano Landi	Girefin S.p.A.	Managing Director
	Gireimm S.r.l.	Sole Director
	Safe S.p.A.	Director
	Safe&Cec S.r.l.	Director
	Società Agricola BIOGUSS S.r.l.	Chairman of the Board of Directors
	Fondazione Museo Antonio Ligabue	Director
	IMW Industries Ltd	Director
	Metatron	Chairman
Cristiano Musi	Safe S.p.A.	Managing Director
	Safe&Cec S.r.l.	Managing Director
	Landi Renzo Polska	Director
	Landi Renzo PAK	Director
	Landi Renzo Beijing	Director
	IMW Industries Ltd	Managing Director
	Metatron	Director
Silvia Landi	Girefin S.p.A.	Director
Vincenzo Russi	e-Novia S.p.A.	Managing Director
	Blubrake S.r.l.	Chairman and Managing Director
	Blimp S.r.l.	Chairman and Managing Director
	e-Shock S.r.l.	Chairman and Managing Director
	Esion S.r.l.	Sole Director
	Existo S.r.l.	Sole Director
	Feel-0 S.r.l.	Sole Director
	Hiride Suspension S.r.l.	Chairman and Managing Director
	Measy S.r.l.	Sole Director
	Huxelerate S.r.l.	Chairman and Managing Director

The table below shows the managerial and auditing positions held in listed and unlisted companies by member of the Company's Board of Directors as of 31 December 2021.

Angelo Iori	No office held
Paolo Ferrero	No office held
	Safe S.p.A.	Member of the Supervisory Board
	Philips Espresso Industries S.r.l.	Member of the Supervisory Board
	MBDA Italia S.p.A.	Standing Auditor
	Fondazione CONAD ETS	Standing Auditor
		Supervisory Board
	Bricoman Italia S.r.l.	Standing Auditor and Chairman of the
	UnipolSai Assicurazioni S.p.A.	Alternate Auditor
	La Scala Società tra Avvocati p.A	Alternate Auditor
	Leonardo Logistics S.p.A.	Standing Auditor
	Avio S.p.A.	Alternate Auditor
		Supervisory Board
	Atos Italia S.p.A.	Standing Auditor and Member of the
		Board
		Auditors and Member of the Supervisory
	Arnoldo Mondadori Editore S.p.A.	Chairman of the Board of Statutory
	Area Lamaro S.p.A.	Alternate Auditor
		Supervisor Board
Sara Fornasiero	Leonardo S.p.A. Alenia Aermacchi S.p.A.	Standing Auditor Standing Auditor and member of
	Neos S.r.l.	Chairman and Managing Director
	WizKey S.p.A.	Director
	Bikevo S.r.l.	Director
	Neosurance S.r.l.	Director
	Value China S.r.l.	Chairman and Managing Director
	Neosperience US	Chairman and Managing Director
	NeosVoc S.r.l.	Chairman and Managing Director
	AdChange S.r.l.	Chairman and Managing Director
	Myti S.r.l.	Chairman and Managing Director
	WorkUp S.r.l.	Chairman and Managing Director
	HOK Group S.r.l.	Chairman and Managing Director
Dario Melpignano	Neosperience S.p.A	Chairman and Managing Director
	Y.Share S.r.l.	Chairman and Managing Director
	Yaxe S.r.l.	Chairman of the Board of Directors
	Winnica S.r.l.	Sole Director
	Yape S.r.l	Chairman and Managing Director
	Weart S.r.l.	Chairman and Managing Director
	Wahu S.r.l.	Chairman and Managing Director
	Stem S.r.l.	Chairman and Managing Director
	Shiftic S.r.l.	Sole Director
	Smart Robots S.r.l.	Chairman and Managing Director

With regard to provisions of the CG Code under Recommendation 15, which provides that that Board of Directors issues guidance regarding the maximum number of management or audit positions in other listed companies, or large-size companies, that may be considered compatible with the effective performance of the role of director of the company, in consideration of the commitment involved in the role, the Board of Directors, in the meeting of 15 March 2021 adopted the following general criteria.

• 1. an executive director shall not hold (a) the office of executive director in another Italian or foreign listed company, banking or finance house; or (b) the office of non-executive director or auditor (or member of other control bodies) in more than three of the aforesaid companies; and
• 1. a non-executive director should not hold, in addition to the office held in the Company: (a) the office of executive director in more than one of the aforesaid companies and the office of non-executive director or auditor (or member of other control bodies) in more

than three of the aforesaid companies; or (b) the office of non-executive director or auditor in more than six of the aforesaid companies.

It should be also noted that the limitation on the number of offices does not apply to offices held in companies of the Landi Renzo group.

Should the aforesaid limit be exceeded, the directors shall inform the Board of Directors forthwith, which shall assess the situation in light of the interests of the Company and shall invite the Director to take any decision stemming therefrom.

In order to maintain adequate knowledge of the business segment in which the Company is active, the directors receive, information and updates, periodically or at any time as necessary, on the business segment in which the Issuer operates, on the principles for proper risk management, and reference regulations, including through documents prepared by the Company or on the initiative of internal departments or functions. In particular, following appointment of the Board of Directors and the Board of Statutory Auditors currently in office, on 29 April 2019, a board induction session was held to provide insight into the industry and market dynamics as well as on current business context and perspectives. Moreover, on 11 November 2019 and 3 March 2020, focus sessions were held for the members of the Remuneration Committee in which legal advisors to the Company described the contents of the Shareholders' Rights Directive II, and the consequent changes to the Consolidated Finance Act and other national laws and regulations. Moreover, on 13 November 2020, legal advisors to the Company held an induction for the members of the Board of Directors and the Board of Statutory Auditors concerning the new Corporate Governance Code approved by the Corporate Governance Committee on 31 January 2020. Lastly, on 16 February 2021, legal advisors to the Company held a specific induction for members of the internal committees in the Board of Directors, concerning the innovations brought by the Shareholders' Rights Directive II and by the new Corporate Governance Code. During the Period, in addition to specific induction training sessions, updates and clarifications were also provided during the Board of Directors' meetings on the business sector in which the Issuer operates and on the applicable regulations, where considered worthy of further elaboration by the Board of Directors.

4.4. OPERATION OF THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2, LETTER D) OF THE CONSOLIDATED FINANCE ACT)

On 15 March 2021, the Board of Directors adopted regulations for the purpose of defining rules for the operation of the board and its committees. The Board of Directors periodically verifies the adequacy of those regulations, and any revisions made are subject to an opinion from the Audit and Risk Committee.

Any discussions and resolutions by the Board of Directors are set out in minutes. Minutes are prepared in the Italian language, signed by the Chairman and the Secretary for the meeting (and/or by the Notary where provided by law). Where possible the minutes are distributed in preliminary draft form upon commencement of the board works, with an invitation to highlight any observations during the board meeting, so that the final version of the minutes can be approved by the Board of Directors during the same meeting.

With reference to pre-meeting information, prior to individual meetings the Chairman ensures, with the support of the Secretary, that adequate information on items to be examined is provided.

Supporting documents are made available – where possible – at least 3 days prior to the relative board meeting, and as far in advance as permitted by the circumstances.

The transmission/availability of documents is coordinated by the Secretary, in agreement with the executive in charge of preparing corporate accounting documents, to the extent competent. Documents that are not already publicly available, are normally classified as "confidential". In order to ensure the confidentiality of information and documents provided, they are normally made available on a dedicated platform, access to which is reserved exclusively to Directors and Statutory Auditors. If a Director and/or Auditor is identified as a "related party" for the Company in relation to a transaction under assessment by the Board of Directors, access to the platform by that Director and/or Auditor will be prevented with respect to documents concerning the transaction with the related party. If the circumstances so require, pre-meeting information will be sent to the Directors and to the Auditors directly, by e-mail.

Non-executive Directors receive an adequate flow of information coordinated by the Chairman with the support of the Secretary, for the purpose of the correct performance of the tasks and responsibilities of the management body. This information flow is normally guaranteed during meetings of the Board of Directors. When the circumstances so require, the Chairman assesses the advisability of transmitting additional documents or organising meetings in the interim, including informal meetings, prior to board meetings, with individual Directors, managers, employees or advisors to the Company. Any requests for additional data, documents and information made outside meetings of the Board of Directors are addressed to the Chairman of the Board and to the Secretary, who ensure that a response is provided using procedures suitable for ensuring that the research and information processes function correctly.

In carrying out its duties, the Board of Directors examines the information it receives from the delegated bodies, also asking these bodies for clarification, further details or additional data that it considers necessary or appropriate. To this end, at least quarterly, the Managing Director provides the Board of Directors with adequate information regarding general management performance and its foreseeable prospects and on the most significant transactions carried out by the Company or its subsidiaries.

Although the Articles of association do not stipulate a minimum frequency of meetings, it is now the practice for the Board of Directors to meet at least once a quarter on the occasion of the approval of the interim financial statements. Board Meetings are scheduled on the basis of a calendar approved at the beginning of the year in order to help to ensure that as many members as possible attend. The corporate calendar may be consulted on the Company's website, in the Investors section.

During the Period, the Board of Directors held nine meetings, each lasting approximately 95 minutes on average; the overall attendance was equal to 88%. The attendance percentage regarding each Director is specified in the table reported at the end of the Report. The members of the Board of Statutory Auditors took part in all meetings of the Board of Directors.

At least eight meetings are scheduled for the current financial period, of which four have been held on 9 February, 3 March, 15 March and 29 March 2022.

The meetings of the Board of Directors can be attended also by non-members of the Board of Directors, upon invitation. Specifically, they are regularly attended by executives of the Issuer and the Landi Renzo group, whose attendance provides a contribution to the necessary in-

depth review of the items on the agenda. All the meetings held during the financial period were attended by executives of the Issuer.

Directors and Auditors receive the papers and information necessary to enable them to express themselves knowledgeably on the subjects submitted for their examination and approval, with a suitable amount of time in advance of the meeting. The work of the Board of Directors is organised by the Chairman, who ensures that each item on the agenda is given the time necessary for a constructive debate.

The Company generally deems sufficient that the documentation be sent three days in advance and this term was complied with during the Period.

4.5. ROLE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

The Chairman of the Board of Directors, Mr Stefano Landi, collaborates in the manner that he deems advisable with the Managing Director, the Lead Independent Director, the Chairpersons of Board Committees and the Chairperson of the Board of Statutory Auditors, facilitating communication between the various corporate bodies and managing the effective operation of board works. Moreover, with the support of the Secretary, he organises ventures intended to provide all members of the Board of Directors and of the Board of Statutory Auditors with adequate updates on the business sectors in which the Company operates and on the reference legal and regulatory framework.

In particular, the Chairman is - together with the Managing Director - the first recipient of proposed items to be included on the agenda and of documents in support of board resolutions which are distributed to directors and auditors of the Issuer suitably in advance, in accordance with the provisions of the Board of Directors Regulations described under Paragraph 4.4. above.

The Chairman always establishes the order of discussion of items on the agenda, following the order indicated in the notice of call. The proposal of board resolutions is normally formulated by the Chairman, without prejudice to the possibility for each Director to suggest alternative formulations.

On the basis of the Board of Directors Regulations, prior to individual meetings the Chairman, with the support of the Secretary, ensures that adequate information is provided on matters to be examined and coordinates the adequate flow of information with non-executive Directors, to ensure the correct performance of the tasks and responsibilities of the management body.

Where the circumstances so require, the Chairman assesses the advisability of transmitting additional documents or organising meetings, including informal meetings held prior to board meetings, with individual Directors, managers, employees or advisors to the Company. Any requests for additional data, documents and information made outside meetings of the Board of Directors are addressed to the Chairman of the Board and to the Secretary, who ensure that a response is provided using procedures suitable for ensuring that the research and information processes can function correctly.

The Chairman may, at own initiative or upon a request by individual Directors, invite employees of the Company and/or group to attend meetings, or persons from outside the Company (such as advisors or experts), where necessary in relation to items on the agenda.

In particular, in order to enable directors to acquire adequate information on the governance of the Company, in agreement with the Chairman and with the support of the Secretary, the Managing Director ensures that managers responsible for departments and areas with competence for items on the agenda are available to participate in those meetings, where requested. Those persons are present at board meetings solely for the discussion of items for which they are competent and are bound by confidentiality commitments provided for board meetings. During the Period the chief financial officer (CFO) of the Company was regularly invited to participate in meetings of the Board of Directors, and upon invitation by the Managing Director provided the necessary additional information on matters within his/her field of competence.

Finally, the Chairman is also responsible, with the support of the Secretary, for the coordination of activities by Board committees with those of the Board, for the organisation of induction ventures and for ensuring transparency in the Board of Directors' self-assessment process. For further information on the coordination of committee works and on the board self-assessment please refer to Sections 6 and 7.

In particular, following the appointment of the Board of Directors and of the Board of Statutory Auditors currently in office, on 29 April 2019 a board induction session was held, intended to provide knowledge of the business sector and of market dynamics as well as the current business context and prospects. Moreover, on 11 November 2019 and 3 March 2020, followup sessions were held for members of the Remuneration Committee during which legal advisors to the Company illustrated the content of the Shareholders' Rights Directive II, as well as the consequent amendments to the Consolidated Finance Act and other domestic laws and regulations. On 13 November 2020, the Company lawyers held a follow-up session for members of the Board of Directors and of the Board of Statutory Auditors on the new Corporate Governance Code, approved by the Corporate Governance Committee on 31 January 2020, and on the main changes introduced by the code. Finally, on 16 February 2021, the Company legal advisors held a specific induction session for members of committees within the Board of Directors, dealing with the main changes introduced by the Shareholders' Rights Directive II and the new Corporate Governance Code. During the Period, in addition to specific induction training sessions, during board meetings updates and clarifications were also provided on the sector in which the Issuer operates and on reference regulations, where considered necessary for in-depth analysis by the Board.

Board Secretary

The Board of Directors appoints and removes the Secretary, upon proposal by the Chairman, who may be chosen from persons outside the Board of Directors and who are not bound by an employment relationship with the Company.

On 15 March 2021, in accordance with Recommendation No 18 of the CG Code, dott. Fiorenzo Oliva was appointed as secretary of the Board of Directors.

The Secretary remains in office pending:

• removal by the Board of Directors;

• resignation, without prejudice to the fact that resignation by the Secretary will take effect commencing from the first of the following dates (i) 30 business days after the resignation of the Secretary, and (ii) the day on which the Board of Directors has appointed a new Secretary; or pending
• verification by the Board of Directors, by way of a resolution, of the continuing inability for the Secretary to carry out his or her functions.

Any person who is in the situations provided by Article 2382 Italian Civil Code may not be appointed as Secretary.

The Secretary possesses adequate knowledge of and experience in accounting, financial and corporate matters, also with reference to rules applicable to companies admitted for trading on Euronext Milan.

The Secretary is attributed the following duties:

• support to the Chairman in the performance of activities for the coordination of board and shareholder meeting works and in particular:
• (a) preparation of the draft notices calling meetings of the Board of Directors;
• (b) preparation of the draft minutes of meetings of the Board of Directors:
• (c) monitoring of the correct and timely performance of pre-meeting information processes, managing – also with the support of the responsible internal departments – the platform on which documents and information will be uploaded prior to board meetings and identifying the most suitable operating procedures for the purpose of facilitating the requirements of accessibility, confidentiality and integrity of information, during its distribution to corporate bodies;
• (d) collaborating in the organisation of board and shareholder meetings, verifying that managers of the Company and/or of the group and/or any external advisors responsible for functions that have competence over any items on the agenda participate in those meetings – if requested by the Chairman;
• (e) upon indication by the Chairman, managing any requests for additional data, documents and information made by Directors and Auditors, outside meetings of the Board of Directors;
• (f) coordinating the collection of information and documents which must be acquired in the context of the process for the self-assessment of the Board of Directors and Board of Statutory Auditors;
• (g) coordinating the keeping and revision of records of minutes of the Board of Directors and Shareholders' meetings;
• (h) maintaining regular contact with the executive responsible for the preparation of company accounting documents in order to coordinate company clerical activities with that executive;
• (i) coordinating communication by the Chairman with the Board of Statutory Auditors and internal board committees, in the forms requested by the Chairman;
• (l) monitoring rules applicable to the Company, including provisions for companies admitted to trading on Euronext Milan (including the STAR segment) in order to report to the Chairman on the need to:

• amend and revise internal company documents (such as but not limited to the company articles of association, the Board of Directors Regulations, the procedure for the management of regulated information, related party transactions regulations, internal dealing procedure) or other governance practices adopted by the Company in line with the CG Code; and/or;
• organise ventures for the purpose of providing all members of the Board of Directors and of the Board of Statutory Auditors with adequate updates on the business sectors in which the Company operates and on the reference legal and regulatory framework.

On performing their functions, the Secretary may make recourse to external advisors appointed and retained by the Company for the supply of specific services (e.g. lawyers, translators, providers of services for the management of corporate records etc.).

4.6. EXECUTIVE DIRECTORS

Managing Directors

The Board of Directors' Meeting of 29 April 2019 vested the Managing Director, Cristiano Musi, with the powers necessary for the day-to-day management of the Company.

The following are Cristiano Musi's principal duties, together with the ceilings for the amounts and issues in respect of the powers bestowed:

• a) the preparation of suitable proposals relating to strategy, budgets, business plan and organisational structure to be submitted to the Board of Directors, after review by the Chairman;
• b) the supervision, subject to his full decisional power and responsibility, directly and/or indirectly through chosen collaborators, without prejudice to the personal responsibility of the latter, of the Company's productive sector, in all its direct and indirect aspects, technical, marketing and financial sectors;
• c) the stipulation, amendment and termination of leasehold agreements with terms of less than 9 years, of leasing agreements including those for real estate, of rental and gratuitous loan agreements for moveable properties and real estate, for a sum of no more than Euro 5,000,000 per agreement with powers to sign the same agreements with the terms and conditions that will be established; the payment and collection of the agreed prices, and the receipting and completion of any other related procedures;
• d) the stipulation, amendment and termination of mandates for professional services for the litigation and arbitration matters described below at (p) and (q), for maximum fees of Euro 250,000 per each proceeding;
• e) the purchase, subscription for, transfer or swapping of shares, quotas, bonds or other financial instruments and holdings in other companies up to Euro 5,000,000 per transaction, jointly with the Chairman;

• f) the purchase, subscription for, transfer or swapping of shares, quotas, bonds or other financial instruments of other companies exclusively as part of the ordinary management of the Company's financial liquidity;
• g) the registration of trademarks and patents, the utilisation of industrial property rights, and all those measures required by the patenting procedure, such as the submission of applications for corrections, amendments, extensions of confidentiality and divisions; the submission, and the defending against, administrative actions, interferences and administrative appeals; and in general, any actions required in order to apply for, obtain and preserve patents; the signature of any documents required in order to exercise the abovementioned powers granted; the appointment, for such purpose, of patent representatives in Italy and abroad, bestowing upon said persons the respective powers;
• h) the purchase and sale of the title of ownership and/or licences and/or granting the right to use pertaining to patents, trademarks, models and any intellectual property rights related to the corporate purpose, jointly with the Chairman of the Board of Directors;
• i) the performance of all banking transactions including the taking out of new credit lines and short, medium and long-term loans, obtaining credit in a current account, credit requests in general, even in the form of debenture loans, the constitution of deposits of securities for custody or administration – for an amount no greater than Euro 10,000,000 per single transaction; as well as to carry out transactions on the credit lines within the above limits per transaction and may also terminate relations;
• j) the hiring and firing of executives (excluding the general manager (direttore generale)), middle managers and office staff, and the establishment of their duties and remuneration in accordance with the legal and regulatory provisions in force at the time;
• k) the signing of correspondence and any other document requiring the Company's signature and with regard to any business coming within the delegated powers;
• l) the management of (i) institutional and other communication; and (ii) institutional investor relations, in each case for the Company as well as for the group to which the Company belongs;
• m) the representation of the Company vis-à-vis Health and Social Insurance Bodies, and the fulfilment of those obligations arising from the labour law provisions in force at the time, in particular as far as regards insurance, benefit and other contributions;
• n) the representation of the Company vis-à-vis trade union and business organisations, and before employment offices and arbitration boards, with the power to reach settlements;
• o) the representation of the Company in legal proceedings (either as plaintiff or defendant), at any level or stage of judgement (for or against), before any Court in Italy or abroad, including the Supreme Court of Cassation, the Court of Auditors, the Council of State, the Constitutional Court, the Court of Appeal, the Courts, the Office of the Justice of the Peace, and for any civil, criminal and/or administrative proceedings;

• p) the representation of the Company before all levels of tax court, and any Jurisdictional Tax Authority, together with the appointment of duly qualified lawyers, accountants, attorneys as required by law, subject to the limitations set out in (d) above;
• q) the submission of protests and the application for injunctions; bringing preventive and enforcement proceedings; participation in bankruptcy and insolvency proceedings, lodging claims and declaring the truthfulness thereof; proposing and accepting real offers; bringing administrative and judicial proceedings before any level and kind of court, including the Court of Cassation and Appeal; submissions to arbitration and the reaching of friendly settlements; the appointment of lawyers, arbitrators, barristers and experts, the revocation of their powers, and their replacement, subject to the limitations set out in (d) above; replying to questioning, deferring, referring and responding to oaths; the submission and signing of any claims, briefs or documents; agreeing, settling and mediating legal dispute; discontinuing legal proceedings and accepting discontinuance thereof; the performance of anything else required – all powers deemed duly conferred for such purpose – in order to fully represent the Company before the court;
• r) the signing of declarations in respect of direct and indirect taxes, and taxes generally, forms and questionnaires, the acceptance and rejection of assessments, conclusion of agreements and settlements, the challenge of actions, presentation of applications, appeals, complaints, briefs and documents before any tax office or commission, of any kind or level;
• s) the making of decisions regarding the exercise of voting rights in meetings of the shareholders of subsidiaries and/or part-owned companies;
• t) the delegation, by granting specific powers of attorney, of any and all of the aboveattributed powers to the person(s) deemed most appropriate based on professional skill and capability;
• u) the management, guidance, organisation and the control of all aspects pertaining to workplace health and safety, in all of the productive units and in other places of work of the Company, and for this purpose, is considered an "Employer" within the meaning of Legislative Decree 81/2008 as subsequently amended and supplemented, with powers to execute, in this capacity, any document, carry out any formalities or any action necessary to comply with the above-mentioned legislative decree and all of the regulations and provisions regarding workplace health and hygiene and safety, the prevention, protection and safeguard with respect to workers' psychological and physical well-being, and the protection of the environment, with full financial independence and independent spending authority in executing these powers. More specifically, by way of example, but not limited thereto, the Managing Director has the following powers:
  • the implementation, also through the competent internal and external advisory bodies, of any additional, amending, supplementing laws and regulations adopted, or which may be adopted, regarding the safety of workers, prevention of accidents and protection of hygiene in the workplace, and performance of any obligations envisaged under the above-mentioned laws and regulations;

• the assessment of risks, drafting of the relevant risk assessment document (DVR), and appointment of risk prevention and protection department (RSPP) manager;
• the delegation, by granting specific powers of attorney, of the functions and powers attributed under this power of attorney, which may be delegated under Legislative Decree 81/2008, to the person(s) deemed most appropriate based on professional skill and capacity to ensure the prompt and constant performance, using the utmost diligence, of the workplace health and safety obligations envisaged, granting them spending authority and the management, organisation and control powers required by the nature of the duties, and authorising, as appropriate, the sub-delegation of specific duties by them to other persons;
• the revocation of the powers of attorney described at the above di paragraph;
• to ensure financial coverage for all activities which exceed the managerial and financial independence of the delegates pursuant to the above sub-paragraphs and which are deemed necessary and appropriate to comply with laws and regulations, and oversee the delegates in terms of their capabilities and correct performance of the duties assigned to them, also by adopting and effectively implementing the verification and control model under article 30 of Legislative Decree 81/2008 and Legislative Decree 231/2001;
• the representation of the Company before Public Administrations, public and private offices and entities to carry out any actions and operations necessary to obtain permits, licences, and other authorisations generally related to the performance of the Company's business, and in particular, related to the health and safety of workers;
• v) in performing the functions in subparagraph (u) above, the decision and implementation of organisational choices and expenses with full powers and discretion, including of a financial nature and with independent spending authority, with the Managing Director or his delegates or any sub-delegates assuming, each within the limits of his/her functions and powers, any criminal liability arising from any breach of the applicable obligations with regard to the health and safety of workers, the protection and safeguard of the environment, and the protection of personal data, and conferred with the relative resolution;
• w) the power, in exercising the functions in subparagraph (u) above, to revoke powers of attorney, proxies, and generally any other appointment granted as of the date hereof by the Company within its organisational structure, pertaining to functions and powers in relation to worker health and safety, environmental safeguard and protection, and protection of personal information;
• x) the power to commit the company in relation to the parties that may be delegated by him and any sub-delegates, to the maximum extent permitted under the law -- to indemnify each of them regarding any cost or expense that they may incur as a consequence of taking on the responsibilities regarding the health and safety of the workers, the safeguarding of the environment and of personal data, except for cases of fraud (dolo) and/or gross negligence (colpa grave);
• y) the office of director charged with the system of internal audit and risk management.

By virtue of the powers vested upon him by the Board of Directors, the Managing Director, Cristiano Musi, qualifies as the person mainly responsible for corporate governance (chief executive officer). It should also be noted that no interlocking situation occurs with regard to Cristiano Musi.

The legal representation of the Company, before any authority with respect to, and to independently sign, any document or declaration pursuant to article 21 of the Company articles of association, without restriction other than pursuant to the articles of association or law, pertains to the Managing Director Cristiano Musi.

With respect to the powers granted to Cristiano Musi as General Manager, please refer to paragraph 4.9 below.

Chairman of the Board of Directors

The Chairman of the Board of Directors Mr Stefano Landi, who holds the position of trustee of the Landi Trust, which indirectly exercises control over the Issuer, is vested with the legal representation, severally, of the company.

The following are the management powers granted on 29 April 2019 by the Board of Directors to Stefano Landi, in his capacity as Chairman of the Board of Directors, together with the ceilings for the amounts and issues in respect of the powers bestowed:

• a) the calling of the meetings of the Board of Directors and procuring that, reasonably in advance of the meeting (except in cases of urgency), the members of the Board of Directors are provided with the documents and the information necessary to allow the Board of Directors to knowledgeably discuss the issues submitted to the Board of Directors for review and approval;
• b) the coordination of the activities of the Board of Directors and the leadership at its meetings;
• c) the receipt of the proposals prepared by the Managing Director and the authority to express to the Board of Directors his opinion in terms of the objectives, strategies, policies and macro-organisational choices of the Company and of the group to which it belongs;
• d) the coordination of the growth strategy for the Company and for the group to which it belongs, both organically and externally, on the basis of the proposals submitted by the Managing Director;
• e) the monitoring the implementation of the resolutions approved by the Board of Directors;
• f) the coordination of the institutional communication activities for the Company and for the group to which it belongs;
• g) the stipulation, amendment and termination of leasehold agreements with terms of less than 9 years, of leasing agreements including those for real estate, of rental and gratuitous loan agreements for moveable properties and real estate, each for a sum of

no more than Euro 5,000,000 per agreement with powers to sign the same agreements with the terms and conditions that will be established;

• h) the purchase, subscription for, transfer or swapping of shares, quotas, bonds or other financial instruments and holdings in other companies up to Euro 5,000,000 per transaction, jointly with the Managing Director;
• i) the purchase and sale of the title of ownership and/or licences and/or granting the right to use pertaining to patents, trademarks, models and any intellectual property rights related to the corporate purpose, jointly with the Managing Director;
• j) the performance of all banking transactions including the taking out of new credit lines and short, medium and long-term loans, obtaining credit in a current account, credit requests in general, even in the form of debenture loans, the constitution of deposits of securities for custody or administration – for an amount no greater than Euro 10,000,000 per single transaction. The Chairman of the Board of Directors may carry out transactions on the credit lines within the above limits per transaction and may also terminate relations;
• k) the issue of sureties, guarantees and patronage letters to subsidiaries, for sums of up to Euro 10,000,000 per transaction;
• l) the signing of correspondence and any other document requiring the Company's signature and with regard to any business coming within the delegated powers;
• m) the delegation, by granting specific powers of attorney, of any and all of the aboveattributed powers to the person(s) he deems most appropriate based on professional skill and capability;
• n) the power to commit the company, regarding the parties that may be delegated by him and any sub-delegates, to the maximum extent permitted under the law, to indemnify each of them regarding any cost or expense that they may incur as a consequence of taking on the responsibilities regarding the health and safety of the workers, the safeguarding of the environment and of personal data, except for cases of fraud (dolo) and/or gross negligence (colpa grave).

Reporting to the Board of Directors

At least every quarter, the Managing Director provides the Board of Directors with adequate information regarding general management performance and its foreseeable prospects, as well as regarding the transactions carried out by the Company and its subsidiaries that are of the greatest importance by size and characteristics.

The Directors report to the Board of Auditors in good time, and in any event at least every quarter, at Board of Directors' Meetings or meetings of the Executive Committee, if one has been appointed, or also in the form of a written memorandum to the Chairman of the Board of Auditors, on the activities performed and the transactions carried out by the Company and its subsidiaries that are of the greatest economic and financial importance and of the greatest significance for the Company's assets, in order to enable the Board of Auditors to assess whether the transactions that have been resolved and implemented comply with the law and the articles of association or are not, on the other hand, clearly imprudent and in conflict with

the resolutions passed by the Shareholders' Meeting, or are such as to impair the integrity of the Company's assets.

In particular, Directors report on transactions in which they have an interest, either on their own account or on behalf of third parties, and on any atypical or unusual transactions or any transactions with related parties.

OTHER EXECUTIVE DIRECTORS

Other than Managing Director Cristiano Musi and the Chairman of the Board of Directors Stefano Landi, no members of the Board of Directors are executive directors.

4.7. INDEPENDENT DIRECTORS

The CG Code recommends that the management body should include at least two independent directors, other than the Chairman.

The current Board of Directors includes three directors, Sara Fornasiero, Vincenzo Russi, and Dario Patrizio Melpignano, who meet the independence requirements provided for by Stock Market Regulations and the CG code. Said directors meet the requirements set out in article 148, paragraph 3, of the Consolidated Finance Act. The number of independent directors, given the total number of members of the Board of Directors, is in line with the provisions of article 148 of the Consolidated Finance Act, the Instructions to the Stock Market Regulations (article I.A.2.10.6) and the CG Code.

The independent Directors Sara Fornasiero and Vincenzo Russi have identified themselves as independent directors in the lists for the appointment of the Board of Directors and, as far as the Issuer is aware, they have undertaken to preserve their independence during the term of their office. The Board of Directors and the Board of Statutory Auditors had verified the possession by Sara Fornasiero, Vincenzo Russi, and Anton Karl (who resigned during the Period) of the requirements of independence, on the first available occasion after their appointment, on the basis of the declarations these directors themselves made to this end.

In particular, at the meeting of 29 April 2019, the Board of Directors had carried out the due checks on compliance by the three non-executive directors Sara Fornasiero, Vincenzo Russi and Anton Karl (who resigned during the Period) with the aforesaid criteria of independence, based on the information provided by them. During the meeting, the Board of Statutory Auditors confirmed that it had performed all necessary checks as to the proper application by the Board of Directors of the criteria and the procedures adopted to assess the independence of its members.

On 13 March 2020, the Board of Directors also verified that each of the non-executive directors, Sara Fornasiero, Ivano Accorsi and Anton Karl (who resigned during the Period) met the requirements of independence, and subsequently confirmed the fulfilment of those requirements, also in accordance with the CG Code. During the meeting, the Board of Statutory Auditors confirmed that it had performed all necessary checks as to the proper application by the Board of Directors of the criteria and the procedures adopted to assess the independence of its members.

Following the resignation of Director Anton Karl, the Board of Directors, during the meeting of 13 November 2020, resolved to appoint as Director of the Company, by means of cooptation

("cooptazione") pursuant to Article 2386 of the Civil Code, Mr. Dario Patrizio Melpignano, and the resolution was approved by the Board of Statutory Auditors. Dario Patrizio Melpignano declared and attested, under his own responsibility, that he met the requirements provided, in order to be qualified as independent. During the meeting, the Board of Directors had carried out the due checks on the possession by Dario Patrizio Melpignano of the independence requirements, also based on the information provided by him. During the same meeting, the Board of Statutory Auditors confirmed that it had performed all necessary checks as to the proper application by the Board of Directors of the criteria and the procedures adopted to assess the independence of its members.

During the Period, the Board of Directors verified that each of the non-executive directors met the requirements of independence, also applying the assessment criteria provided by the CG Code.

On 15 March 2021, the Board of Directors defined the quantitative and qualitative criteria to be used in order to evaluate the significance of material circumstances pursuant to the Code for the purpose of evaluating the independence of directors, as provided by Recommendation No 7 of the Code.

During the Period, independent Directors met twice without the other Directors of the Company and the meetings were coordinated by the lead independent officer

4.8. LEAD INDEPENDENT DIRECTOR

On 29 April 2019, the Board of Directors meeting appointed independent director Ms Sara Fornasiero as lead independent director in accordance with Recommendation 13 of the CG Code. Non-executive directors and, specifically, independent directors, shall report to her for a better contribution to the activities and coordination of the Board of Directors.

The Board of Directors has considered it opportune to maintain the position of lead independent director, also at the time of the renewal of the company bodies, which you are reminded took place with the approval of the financial statements closed at 31 December 2018, because the Chairman was the trustee of the Landi Trust, governed by Jersey Law, which is the main shareholder of the company.

The lead independent director represents a point of reference and coordination for the applications and contributions of the non-executive Directors to improve the functioning of the Board of Directors, co-operates with the Chairman of the Board of Directors to ensure that directors receive complete and timely flows of information, and has powers to convene specific meetings of the independent directors to discuss matters considered to be of interest to the functioning of the Board of Directors and management of the company.

During the Period, the lead independent director actively participated to the meetings of the Board of Directors, coordinating as necessary and suitable, the requests and the contributions of the non-executive directors, and especially those of the independent directors.

4.9. GENERAL MANAGER

From 29 April 2019, in accordance with a resolution of the Board of Directors, the Managing Director Cristiano Musi is also in office as General Manager of the Company.

The following are the management powers granted on 29 April 2019 by the Board of Directors to Cristiano Musi, in his capacity as Manging Director, together with the ceilings for the amounts and issues in respect of the powers bestowed:

• a) purchases, sales, permutations and all other transactions involving the acquisition or sale of machinery, plant, equipment, vehicles, company products and movable property in general, including those recorded in public registers, for an amount of up to Euro 5,000,000 per transaction, agreeing upon the relevant conditions, prices and terms of payment;
• b) the acquisition of services, stocks, basic components and raw materials, semi-finished goods and materials required by the Company for its production;
• c) the handling of all bureaucracy and procedures concerning the importation of basic components and raw materials,
• d) the handling of the implementation and completion of all related measures, including those related to manufacturing and consumer taxes, inland revenue and state monopoly duties;
• e) the stipulation, amendment and termination of professional services agreements and consultancy agreements, for an amount of up to Euro 1,000,000;
• f) the stipulation, amendment and termination of agency, distribution, representation, brokerage and business procurement agreements, including those subject to sole agency, for the best possible placing of the Company's products;
• g) the stipulation, amendment and termination of contracts for industrial and commercial services, works, hire, supply, transport, storage and shipping, for a sum of no more than Euro 5,000,000 per transaction;
• h) purchases and sales, and any foreign currency transactions in general, within the framework of the currency regulations in force at the time;
• i) the performance of any actions and operations, vis-à-vis public administrations, public authorities and offices, required in order to obtain concessions, licences, permits and authorisations of any kind in general;
• j) any receipt and collection in any form, also by means of endorsement, of amounts, claims, payment orders, security deposits both from the issuing institution, public savings and loan bank, treasuries, the railway, post and telegraph offices, and any Italian or foreign public or private body, issuing valid receipts and releases;
• k) the endorsement, also for discounting and collection, demand and receipt of payment and issuance of receipts in respect of bills of exchange, cheques and money orders, including payment orders of the state treasury, regions, provinces, municipalities and any other public entity or any public fund; issuance of cheques on bank accounts, including liability accounts, of the Company within the credit limits granted by the bank to the Company;

• l) the demand and receipt of sums, receivables, interest, dividends, cheques and payment orders from whoever issues them in favour of the Company, including the sales and advance receipts, also in continuation, of receivables to financial institutions;
• m) the receipt from post and telegraph, customs, railway, shipping and transport companies and, generally, from any public office, any company or premise, of money orders, parcels, letters, including registered and insured letters with declarations of value, goods, money, etc., issuing receipts and releases;
• n) the stipulation and termination of insurance contracts of any kind, execution of relevant policies with powers to settle and request, in the case of a claim, the relevant indemnity, the issue of receipts to payors, settlement and payment of any other indemnities due to third parties in respect of any claim;
• o) the execution of correspondence and of any other document requiring the signature of the Company and relating to issues included in the delegated powers;
• p) the performance of all necessary filings at the Companies' Register and at any other competent office;
• q) the delegation, by way of specific powers of attorneys, of any and all powers listed above to any person he will deem most suitable in terms of expertise and professional skills.

With respect to the powers granted to Cristiano Musi as Managing Director, please refer to paragraph 4.5 above.

5. MANAGEMENT OF CORPORATE INFORMATION

The Company launched a procedure for the internal management and the public disclosure of inside information, implementing the provisions laid down in market abuse legislation, including the new provisions set out in Regulation (EU) No. 596/2014 of the European Parliament and the Council of 16 April 2014 on market abuse, Commission Delegated Regulation 2016/522 of 17 December 2015, and Commission Delegated Regulation 2016/523 of 10 March 2016, also establishing procedures for the registration of persons with access to inside information, last updated on 13 November 2018.

In general terms, the procedure vests the Managing Director, with the support of the executive in charge of preparing corporate accounting documents and of the Investor Relations Manager, with responsibility for the internal handling and the public disclosure of inside information. It provides specific sections devoted to the definition of inside information and the recipients of said procedure, the relevant methods of handling inside information, the obligations in terms of conduct of recipients, the identification of bodies in charge for managing and disclosing inside information to the public, the methods for disclosing inside information to the public and the approval process for press releases, the methods of handling market rumours, the rules to be applied in the event of late disclosure to the market or in the event of disclosure of inside information to third parties, the instructions for meetings with the media and the financial community, the rules to be adopted in market surveys, and the creation of a register of persons with access to inside information, the persons authorised to conduct relations with the public and the persons bound by confidentiality obligations.

In compliance with the provisions of market abuse law, the Company has adopted an Internal Dealing Code, drafted pursuant to Regulation (EU) No. 596/2014 of the European Parliament and the Council of 16 April 2014 and Articles 152-sexies et seq. of the Issuers' Regulations, lastly amended by the Board of Directors on 14 November 2017.

In accordance with this Code, a number of key personnel, understood as those with normal access to inside information and with the power to take management decisions that may affect the Company's trend and prospects, as well as the persons closely connected to them, are under an obligation to make disclosures to the market regarding transactions carried out on the listed securities issued by the Company.

The internal dealing code provides for ceilings and deadlines for market disclosures, with relative sanctions in line with the relevant Consob provisions. Said code also contains clauses governing the black-out period.

During the Period, the Company did not issue announcements concerning internal dealing.

During the Period, the Issuer conducted a training session for those structures principally exposed in handling market sensitive information, intended to refresh their knowledge of the relative risks and internal procedures.

1. COMMITTEES WITHIN THE BOARD OF DIRECTORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTION 2(D), OF THE CONSOLIDATED FINANCE ACT)

The Board of Directors has not set up any internal committees other than those provided for by the CG Code, other than the Committee for related-party transactions, in compliance with the provisions of the Related Party Transactions Regulations. In particular, at the date of this Report the Company has established the following committees within the Board of Directors:

• Remuneration Committee, please refer to Section 7.2;
• Audit and Risk Committee, please refer to Section 9.2;
• Committee for related party transactions, please refer to Section 10 of this Report.

The Company has not created any committee that performs the duties of two or more of the committees under the CG Code, nor has it reserved such duties to the Board of Directors as a whole, under the co-ordination of the Chairman, or divided these duties inconsistently with the provisions of CG Code.

1. SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS - APPOINTMENTS COMMITTEE

7.1. SELF-ASSESSMENT AND SUCCESSION OF DIRECTORS

Commencing from 2018, all directors in office are required to fill in, once a year, a questionnaire aimed at evaluating the functioning and efficiency of the Board of Directors and of the Committees, and their size and composition in accordance with the provisions of Article 4 of the CG Code.

The comments emerging from the questionnaire are brought to the attention of the Board of Directors by the Managing Director, who is responsible for supervising the board review process, in order to ensure its effectiveness. The results of the abovementioned questionnaire are also brought to the attention of the Remuneration Committee and the Audit and Risk Committee, for those matters for which each is respectively responsible.

In this regard, at a meeting held on 15 March 2021, the Board of Directors conducted a positive assessment of the size, composition and workings of the Board, of the Audit and Risk Committee and of the Remuneration Committee, also with reference to the component part represented by independent directors.

In consideration of the structure and size of the group to which the Issuer belongs, the Board of Directors has not adopted succession plans for executive directors as it considers the replacement procedures adopted suitable for ensuring continuity and certainty in corporate governance.

7.2. APPOINTMENTS COMMITTEE

The Board of Directors has decided not to set up an internal committee to manage proposals of appointments because, as of the date hereof, it has not yet deemed it necessary, especially taking into account the Landi Renzo group structure and the Company's ownership structure.

8. REMUNERATION OF DIRECTORS – REMUNERATION COMMITTEE

8.1. DIRECTORS REMUNERATION

As regards remuneration, under the articles of association the Shareholders' Meeting assigns the Board of Directors emoluments that may consist of a fixed and a variable portion throughout the term of its mandate. The variable portion is commensurate to the achievement of certain objectives and/or to the economic results attained by the Company.

As regards the variable portion of the remuneration, under Italian Stock Market Regulations, in order to enter the STAR segment, the Company is required to appoint an internal Remuneration Committee and to apply the principles and recommendations 25, 26, 27(a), 27(c) 29 and 31 of Article 5 of the CG Code.

See the report on the remuneration policy and compensation paid, published pursuant to Article 123-ter of the Consolidated Finance Act for information regarding the general remuneration policy, stock option incentive plans, and the compensation of executive directors, and executives with strategic responsibilities, and non-executive directors.

Directors' indemnity in the event of their resignation, dismissal or termination of employment following a takeover bid (pursuant to article 123-bis, subsection 1, letter i) of the Consolidated Finance Act)

Except as disclosed in the report on the remuneration policy and compensation paid published pursuant to Article 123-ter of the Consolidated Finance Act, as of the date of this Report, there are no agreements between the Company and the members of its Board of Directors that envisage the payment of indemnity in the event of their resignation, dismissal and/or termination

of employment without due cause, or in any case of termination of employment following a takeover bid.

8.2. REMUNERATION COMMITTEE

Composition and functioning of the Remuneration Committee (pursuant to article 123 bis, subsection 2, letter d) of the Consolidated Finance Act)

As of the date of this Report, the Remuneration Committee is comprised of three directors: Sara Fornasiero as Chairman and, and Vincenzo Russi, both of whom are Non-Executive and Independent Directors, and Angelo Iori, Non-Executive Director. Sara Fornasiero, Vincenzo Russi, and Angelo Iori have suitable knowledge of and experience in accounting and financial matters and in renumeration policies, deemed adequate by the Board of Directors at the time of their appointment. The members of the Remuneration Committee receive an annual gross remuneration for their work, as resolved by the Board of Directors on 29 April 2019.

The Remuneration Committee has its own internal rules, lastly updated on 15 March 2021. The works of the Committe are chaired and coordinated by the chairperson. Meetings are called by way of notice sent two calendar days' prior to the date scheduled for the meeting, or twentyfour hours prior to the meeting in case of urgency. Meetings of and resolutions by the Committee are set out in minutes signed by the Chairperson of the meeting and by the Secretary, where appointed, and the Chairperson of the Committee provides information thereof at the first subsequent meeting of the Board of Directors.

The Directors are required to abstain from participating in meetings of the Board of Directors when proposals relating to their compensation are being discussed.

During the Period, five meetings of the Remuneration Committee were held, each lasting on average 64 minutes. During the Period, Sara Fornasiero, Angelo Iori and Vincenzo Russi attended 100% of the meetings. Upon invitation of the Remuneration Committee and in relation to certain matters, the executives of the Company, other Directors and the Company' s advisors attended, without the right to vote, the meetings of the Remuneration Committee. The meetings of the Remuneration Committee were attended also by the members of the Board of Statutory Auditors. The members of the Remuneration Committee attended inductions during the Period, concerning the innovations brought by legislative decree 49/2019 implementing Directive 2017/828/UE "Shareholder Rights Directive II" ("SHRD II") and by the new Corporate Governance Code. For further information in respect to the induction trainings held throughout the Period, see Section 4.2 of this Report.

Considering the nature of the activity carried out by the Remuneration Committee, the Company elected not to provide the Committee with any predetermined spending amount, and to consider any spending requirements as they arise.

At least three meetings of the Remuneration Committee are planned for the current year, of which two were already held on 7 March and 29 March 2022. Minutes of the Remuneration Committee's meetings have been duly kept and the Chairman of the Committee reported thereon during the first following meeting of the Board of Directors.

For further information please refer to table 2 annexed to this Report.

Duties of the remuneration committee

The Remuneration Committee assists the Board of Directors in the preparation of the remuneration policy.

The Remuneration Committee is required to assist the Board of Directors in the preparation of the remuneration policy and to formulate proposals or express opinions to the Board of Directors, in the absence of those directly concerned if these are members of the Committee, regarding the remuneration of the Managing Director and those directors who hold particular positions and the setting of performance goals related to the variable component of said remuneration; it also periodically appraises the adequacy and overall accuracy of the remuneration policy for key executives, supervising their application and making general recommendations on the matter and monitors the application of the remuneration policy verifying, in particular, the actual achievement of the performance goals. In particular, during the Period the Remuneration Committee examined the implementation status of recommendations under the CG Code regarding remuneration, it reflected on the Remuneration Policy and the Remuneration Report, conducted assessments of the revision of its internal Regulations, formulated proposals to the Board of Directors on the fixed component part of remuneration for directors holding specific positions, for 2021.

On performing its duties, the Committee is entitled to access information necessary to perform its tasks, and to make recourse to the assistance of company functions or, at terms established by the Board of Directors, external advisors, at the expense of the Company, provided that they are adequately bound by the necessary confidentiality obligations and are not in any situation which could comprise their independence of opinion.

For additional information on the duties of the Remuneration Committee, see the relevant sections of the report on the remuneration policy and compensation paid published pursuant to Article 123-ter of the Consolidated Finance Act.

***

9. AUDIT AND RISK MANAGEMENT SYSTEM – AUDIT AND RISK COMMITTEE

The internal audit and risk management system is the collection of rules, procedures and organisational structures intended to allow the effective and efficient identification, measurement, management and monitoring of the principal risks, for the purpose of contributing to the sustainable success of the Issuer – in accordance with the Issuer's strategies.

The Stock Exchange Rules require, for the purpose of obtaining STAR qualification, that the Company appoints an internal audit and risk committee in accordance with recommendations 32(c), 33 and 35 under Article 6 of the CG Code.

The Board of Directors assesses the effectiveness of internal audit and risk management system and its adequacy in consideration of the characteristics of the company on a yearly basis. As a result of the analysis performed during the Period, the internal audit and risk management system was found to be effective and adequate in consideration of the characteristics of the company and the risk profile assumed.

In defining strategic, business and financial plans, the Board of Directors defined the nature and level of risk as compatible with the strategic objectives of the Issuer, including in its assessments all risks which may acquire relevance for sustainability of the Company's business in the medium-long term, and determined the guidelines for the internal audit and risk management system.

The guidelines provided by the Landi Renzo group's internal audit system, as established by the company's Board of Directors with the aid of the Audit and Risk Committee, perceive the internal audit system and risk management as a transversal process integrated with all corporate activities, based upon the international principles of Enterprise Risk Management (ERM). The internal audit system and risk management is designed to help the group achieve its own performance and profitability targets, obtain reliable economic-financial information and ensure conformity with the laws and regulations in force, thus avoiding damage to the company's image and financial losses. Within the framework of this process, particular importance is given to the identification of company objectives and to the classifications and management of those risks associated with these objectives, through the implementation of specific actions designed to contain such risks. Corporate risks may be of various kinds: strategic risks, operating risks (associated with the efficacy and efficiency of corporate operations), reporting risks (associated with the reliability of economic-financial information), and finally, compliance risks (concerning observance of the laws and regulations in force, thus avoiding financial losses and/or damage to the company's image). All risks may also be of an exogenous or endogenous nature vis-à-vis the Landi Renzo group.

The persons in charge of the various company departments identify and assess their respective risks, and see to identifying risk containment and reduction measures (so-called "primary line control").

The above activities are supplemented by the controls carried out by the Manager responsible for the preparation of corporate documents and his/her staff (the so-called "second-level control") and by the head of Internal Audit (the so-called "third-level control"), who assess, on an on-going basis, the effectiveness and efficiency of the internal audit system and risk management, through risk assessment, cyclical audit and follow-up management.

The following are details of the main structural elements on which the Company's internal audit system and risk management is based.

The structural features of the control environment

• Code of Ethics The Landi Renzo Group's Code of Ethics, approved in March 2008, sets out the principles and values underlying its way of doing business, together with the rules of conduct and implementation rules pertaining to said principles. The Code of Ethics is an integral part of the Organizational, Management and Control Model pursuant to Italian Legislative Decree 231/2001. The Code of Ethics, which is binding on the conduct of all the employees of the group, has been revised within the framework of the programme for the updating of 231 Model, following the introduction of the new crime of self-money laundering (art. 648-ter, 1, of the Italian Criminal Code). The new Code of Ethics is in force from 15 March 2021.
• Organisational structure The Landi Renzo group's general organisational arrangements are defined by a series of internal organisational communications issued

by the Human Resources Department, as recommended by the Managing Director. The Landi Renzo group's structure, the organisational charts and the organisational measures can be consulted by all employees on the Company's Intranet site;

Internal Audit function – The Landi Renzo group possesses an internal audit function with the scope of assessing, through continuous monitoring of the corporate risks and an ongoing program of audits, the soundness of the internal control system.

Instruments designed to safeguard operating targets

• Strategic planning, management control and reporting During the Period, the Landi Renzo group utilised a reporting instrument aimed at tracking the accounting figures and comparing them to the budget and forecasting figures. This reporting instrument also supports processing of "what if analysis" at a high degree of detail, processing different hypothetical scenarios on main items of the profit and loss accounts on a rolling basis over 12 months.
• Risk management system For those companies within the Landi Renzo group deemed to be of importance for this purpose a risk management system has been established, based on the principles of Enterprise Risk Management (ERM). This system includes management of risks relating to the financial data disclosure process pursuant to Article 123-bis, subsection 2(b) of the Consolidated Finance Act, the main characteristics of which are described in a separate paragraph below. This system has led to the identification of the risks related to the performance of the main corporate processes and the control actions to be undertaken in order to contain residual risks. The Landi Renzo group's main risks and uncertainties are listed in a special chapter of the Management Report;
• Company operating procedures system The administrative procedure manuals, drawn up in accordance with Italian Law 262/2005 on the safeguarding of savings, together with the working procedures and instructions issued by the Quality System, and finally the organisational guidelines issued by the Human Resources department, ensure the correct implementation of corporate guidelines, and thus the reduction of risks associated with the achievement of company objectives. The company operating procedures system was lastly updated during the Period.
• Information systems The Landi Renzo group's information system has been created using the very latest technologies and packages relating to an integrated ERP internal system (SAP). Use of the system is governed by a series of internal procedures that help improve safety, confidentiality and safeguard data, and the correct utilisation of the system by users.
• Human resources The Landi Renzo group possesses a formal procedure for the selection and hiring of personnel, and the planning and management of training. Pay policy, in keeping with best practices and the market, envisage a share of variable remuneration for senior managers and executives.

Instruments designed to safeguard compliance targets

Corporate Ethics and Compliance Model pursuant to Italian Legislative Decree 231/2001 – See section 9.4 below.

• Accounting control model pursuant to Italian Law 262/2005 regarding the protection of savings which is made up of the Manuals of administrative procedures pursuant to Italian Law 262/2005 (hereinafter, the "Manuals") that formalise the role of process owners.
• The Manuals of administrative procedures are available for all the employees on the Company's intranet. Any significant procedural discrepancies, differences and/or departures are promptly notified to the executive appointed to draft corporate accounting documents, in order that the due corrective measures be taken.

Instruments designed to safeguard reporting targets

• Accounting information and financial reporting The aforesaid Manuals of administrative procedures pursuant to Italian Law 262/2005, together with the Landi Renzo group's Accounting Manual, safeguard the correct drafting and reporting of accounts and of statutory and consolidated financial statements;
• Inside information The procedures for the internal handling, and the communication to the outside world, of inside information are constantly updated, in order to maintain said procedures in line with Community directives on market abuse;
• Internal communications The head of Internal Audit has access to all information which is expedient for the performance of his/her duties. This aids the prompt acquisition of information concerning company management which, at the same time, is promptly analysed in order to identify the associated risks and, where deemed opportune, included in the economic-financial reporting.

Instruments for monitoring the internal audit system and risk management

The abovementioned instruments of control are monitored not only by those persons in charge of the various company departments, but also independently by the head of Internal Audit, who shall constantly monitor the effectiveness and efficacy of the internal audit system and risk management, through risk mapping, the performance of audits, and the subsequent management of the follow up.

Principal characteristics of the risk management system and internal audit system in relation to the financial reporting process pursuant to 123-bis, subsection 2(b) of the Consolidated Finance Act

Introduction

In relation to the financial reporting process, the risk management system should not be considered separately from the internal audit system, because they are both elements of the same system.

The aim of the risk management and internal audit system in relation to the financial reporting process is to guarantee the reliability, accuracy and timeliness of the same.

During the preparation of the latest audit plan by the internal Audit Function for the three-year period 2019-2021, the risks connected to the performance of the main corporate processes have been identified.

Description of the main characteristics of the risk management and audit system existing in relation to the financial reporting process

The monitoring and control activities are carried out on three levels:

• first-level control (the so-called "primary line control") inherent in the performance of operating processes and assigned on an on-going basis by the operating management/ process owner;
• second-level control, i.e., those checks performed by the manager in charge of the preparation of corporate accounting documents and his/her team, to monitor the risk management and control process in relation to the financial reporting process, securing consistency of the same with the company objectives;
• third-level control, i.e. on-going independent monitoring by the head of Internal Audit in relation to the effectiveness and efficiency of the internal audit system and risk management with respect to financial reporting process, through risk mapping, the conduct of audits and follow-up management.

Overall assessment of the suitability of the internal audit system and risk management

On the basis of the information and findings received with the support of investigations carried out by the Audit and Risk Committee, the head of Internal Audit, and the Supervisory Body pursuant to Italian Legislative Decree 231/2001, the Board of Directors believes that the Landi Renzo group's internal audit system and risk management is suitable and efficient and effectively operational, and thus apt to secure an acceptable level of overall risk in consideration of the business carried out by the company, the company's characteristics and the market in which it operates.

9.1. CHIEF EXECUTIVE OFFICER

At the 29 April 2019 meeting, the Board of Directors, with the approval of the Audit and Risk Committee, selected the Managing Director Cristiano Musi as the Executive Director in charge of establishing and maintaining the internal audit and risk management system.

The director in charge of the internal audit and risk management system: (a) identifies the major corporate risks, bearing in mind the nature of the business carried out by the Issuer and its subsidiaries, and submits them periodically for review to the Board of Directors; (b) implements the guidelines set by the Board of Directors, and sees to the planning, establishment and management of the internal audit and risk management system, and verifies on an on-going basis its overall suitability, effectiveness and efficiency; (c) procures that the system be adapted to the dynamics of operating conditions and to the legislative and regulatory framework; (d) entrusts the Internal Audit function to carry out controls on specific operational areas and on the compliance of corporate operations with internal policies and procedures, concurrently notifying thereof the Chairman of the Board of Directors, the Chairman of the Audit and Risk Committee and the Chairman of the Board of Statutory Auditors; and (e) promptly notifies the Audit and Risk Committee (or the Board of Directors) of any issues or problems found in performing its tasks or learnt in any way whatsoever, so that the Committee (or the Board of Directors) may take appropriate measures.

9.2. AUDIT AND RISK COMMITTEE

Composition and operation of the Audit and Risk Committee (in accordance with Article 123-bis, subsection 2, letter d) of the Consolidated Finance Act).

The Board of Directors ensures that its appraisals and decisions with regard to the internal audit and risk management system, the approval of the financial statements and half-year reports and the relations between the Issuer and the auditing firm are supported by satisfactory preliminary work. To this end, the Board of Directors set up an Audit and Risk Committee composed of Non-Executive Directors, the majority of whom are Independent Directors. At least one member of the Audit and Risk Committee should have satisfactory experience in accounting and financial matters, to be assessed by the Board of Directors at the time of his appointment.

As of the date of this Report, the Audit and Risk Committee is comprised of three directors: Sara Fornasiero as Chairman and Vincenzo Russi, both Non-Executive and Independent Directors, and Angelo Iori, Non-Executive Director. Sara Fornasiero, Vincenzo Russi and Angelo Iori have suitable knowledge of and experience in accounting and financial matters, as well as of a commercial and operational nature to enable them to have an organic view of the corporate risks.

The members of the Audit and Risk Committee receive an annual gross remuneration for their work, as resolved by the Board of Directors on 29 April 2019.

The Audit and Risk Committee has its own set of regulations, most recently updated on 15 March 2021. The works of the Committee are chaired and coordinated by the chairperson. Meetings are called by way of notice sent two calendar days' prior to the date scheduled for the meeting, or twenty-four hours prior the meeting in case of urgency. Meetings of and resolutions by the Committee are set out in minutes signed by the Chairman of the meeting and by the Secretary, where appointed, and the Chairperson of the Committee provides information thereof at the first subsequent meeting of the Board of Directors.

During the course of the Period, the Committee examined, inter alia, those activities pertaining to the internal audit and risk management system and the organisational Model provided for by Italian Legislative Decree 231/2001, and it provided the Board of Directors with assistance when called upon to do so.

During the Period, seven meetings of the Audit and Risk Committee were held, lasting on average 92 minutes each. During the Period, Sara Fornasiero, Vincenzo Russi and Angelo Iori took part in 100% of the meetings. Upon invitation of the Audit and Risk Committee and in relation to certain matters, the executives of the Company, other Directors and the Company' s advisors also attended, without the right to vote, the meetings of the Audit and Risk Committee. Meetings of the Audit and Risk Committee were also attended by the members of the Board of Statutory Auditors.

At least six meetings of the Audit and Risk Committee are planned for the current year and three of these were already held on 7 March, 14 March and 29 March 2022. Minutes of the Audit and Risk Committee's meetings have been duly kept and the Chairman of the Committee reported thereon during the first following meeting of the Board of Directors.

For additional information please refer to table 2 annexed to this Report.

Duties and powers of the Audit and Risk Committee

Upon receiving prior opinion of the Audit and Risk Committee, the Board of Directors:

• a) sets down the guidelines for the internal audit and risk management system so that the main risks faced by the Issuer and its subsidiaries are correctly identified and properly measured, managed and monitored, also deciding on the degree of compatibility of these risks with a corporate governance in line with the strategic objectives set;
• b) at least once a year assesses the adequacy of the internal audit and risk management systems in consideration of the characteristics of the company and its risk profile, as well as effectiveness of the same;
• c) at least once a year, approves the working plan prepared by the head of Internal Audit, having heard the Board of Statutory Auditors and the director in charge of the internal audit and risk management system;
• d) in its corporate governance report, describes the main features of the internal audit and risk management system and the procedures of coordination among the persons involved, expressing its opinion on the adequacy of the same;
• e) having heard the Board of Statutory Auditors, assesses the results laid down by the legal auditor in the letter of recommendations and in the report on the fundamental issues highlighted by the legal audit.

Moreover, the Board of Directors, at the proposal of the Director in charge of the internal audit and risk management system, having received the preliminary favourable opinion of the Audit and Risk Committee, and having heard the Board of Statutory Auditors:

• appoints or discharges the head of Internal Audit;
• ensure that he/she is endowed with resources adequate for the performance of his/her duties;
• sets his/her remuneration in line with the policies of the Company.

In addition to assisting the Board of Directors in the performance of the above duties, the Audit and Risk Committee:

• a) with the executive in charge of the preparation of the corporate accounting records and having heard the legal auditor and the Board of Statutory Auditors, verifies that accounting principles have been correctly followed and, in the case of groups, that they are consistent for the purposes of the consolidated financial statements;
• b) assesses the suitability of periodic financial and non-financial information for the purpose of correctly representing the business model and strategies of the Issuer and the impact of its business as well as performance achieved;
• c) expresses opinions regarding specific aspects involving the identification of the main corporate risks and supports evaluations and decisions by the Board relating to the management of risks arising out of detrimental events that it has become aware of;

• d) examines the content of periodic non-financial information which is relevant to the internal audit and risk management system;
• e) reviews periodic reports concerning the assessment of the internal control and risk management system, and periodic reports of particular relevance prepared by the Internal Audit function;
• f) monitors the independence, adequacy, effectiveness and efficiency of the Internal Audit function;
• g) may request the Internal Audit function to perform controls on specific operational areas, concurrently notifying the chairman of the Board of Statutory Auditors thereof;
• h) reports to the Board of Directors at least every six months on the occasions of the approval of the annual and half-year reports regarding the activities carried out and the adequacy of the internal audit and risk management system;
• i) supports, with adequate activity, the evaluations and decisions of the Board of Directors relating to the management of risks resulting from prejudicial facts that the Board of Directors has come to know.

During performance of its duties, the Audit and Risk Committee has the authority to access the company information and functions as necessary for it to perform its duties.

In the meetings held during the Period, the Committee focused in particular on the following:

• the criteria and findings relating to the application of impairment testing process to the value of equity investments in subsidiary companies;
• the quarterly and annual results in order to assess the proper application of accounting principles and consistency of the same for the purpose of drawing up the consolidated financial statements;
• the corporate governance report for the 2020 Period;
• the appointment of the Director in charge of the internal audit and risk management system;
• regular meetings with the Head of the Internal Audit;
• periodic reports and the working plan prepared by the head of Internal Audit;
• periodic meetings with the auditing firm and the Board of Statutory Auditors;
• updates of the main projects for the group to which the Issuer belongs, relating to regulatory and legislative compliance and accounting matters;
• periodic reports of the Supervisory Body pursuant to Legislative Decree 231/2001;
• updates of the Organizational, Management and Control Model pursuant to Legislative Decree 231/2001;

• reports on activities prepared by the Director in charge of the internal audit and risk management system;
• updates on the main litigation;
• assessment of the process concerning non-financial reporting;
• assessment of the adequacy of the internal audit and corporate risk management system; and
• the economic and financial condition of the group to which the Issuer belongs, holding meetings and consultations with the Managing Director and the Chief Financial Officer and other management and supervisory corporate bodies;
• the updates on the Covid-19 emergency received by the Director in charge of the internal audit.

In the exercise of its duties, the Audit and Risk Committee has the right to avail itself of external consultants and to have access to the corporate information and functions it needs to perform its duties.

Considering the nature of the activities of the Audit and Risk Committee, the Company has decided not to grant the committee a predefined expense limit, preferring to consider on a case by case basis the expenses that may be needed from time to time.

9.3. HEAD OF THE INTERNAL AUDIT FUNCTION

The Board of Directors, in the meeting of 20 June 2018 – upon proposal of the executive Director in charge of supervising the functioning of the internal audit system, having received the preliminary favourable opinion of the Audit and Risk Committee and having heard the Board of Statutory Auditors – had appointed Mr Filippo Alliney (formerly of counsel of Andersen Tax&Legal since 2017 and currently Sole Director of Alliney & Partners S.r.l.) as the Internal Audit Manager. This appointment was – upon proposal by the Executive Director in charge of supervising the functioning of the internal audit system and subject to the favourable opinion of the Audit and Risk Committee and having consulted with the Board of Statutory Auditors – confirmed by the Board of Directors at the meeting on 29 April 2019. At the same meeting, the Board also resolved to attribute to the Director in charge of supervising the functioning of the internal audit system daily compensation of Euro 1,050.00, plus VAT and social security contributions, for each day when he performs his duties, and to reimburse him for the expenses incurred in performance of the role.

The Internal Audit Manager, Filippo Alliney is not responsible for any area of operations and is not hierarchically under any operations area manager, including the Administration, Finance and Control department, so as to ensure greater independency, autonomy and professionalism and a wider consideration of the best practice in the market.

Mr Filippo Alliney satisfies the requirements of professionalism, independence and organization and lacks any corporate relationships with the Issuer.

The head of the Internal Audit function has, inter alia, the duty to verify that the internal audit system and risk management is always adequate, fully operational and functional and reports on his work to the Audit and Risk Committee, the Board of Auditors and the Director in charge of supervising the operation of the internal audit and risk management system.

The head of the Internal Audit function has access to all the information required for the performance of his duties, and has been provided with sufficient funds, for each year of his appointment, up to a maximum gross sum of Euro 50,000.

The activities of the head of the Internal Audit function, consistently with the three-year Landi Renzo group's audit plan approved by the Board of Directors on 12 March 2020 are aimed, through the audits and the participation in the company's activities, to express an assessment of the soundness of the internal control system.

Having overcome the emergency phase caused by the Covid-19 pandemic crisis and the consequent recourse to furlough schemes (cassa integrazione), which required a variation to the time-scale of the Audit Plan, the plan has recommenced its normal course commencing from the second quarter of 2021, with the completion of all audits originally programmed.

The nature and purpose of the Internal Audit function is to verify that the internal control system is effective in limiting corporate risks. In this scenario, the Internal Audit function's objective is twofold: on the one hand, of a formal nature, to ensure that market best practices are respected, to guarantee an adequate flow of information to the corporate bodies and confrontation with other control functions, and, on the other hand, of a substantive nature, through verifications, also through testing activities, on the audits existing within the corporate processes (assurance) or by the adequate management of development/operational adjustment projects (control design).

In carrying out the activities provided for in the audit plan, the Internal Audit function complies with the market practices referred to in the Regulations approved by the Board of Directors, interacting constructively with the stakeholders of the processes or of the activities under review.

The selection of the areas subject to audit takes place through a process of risk analysis and assessment (risk mapping) involving the management and audit bodies (i.e. the Internal Audit and Risk Committee, the Board of Statutory Auditors and the Supervisory Body) and the Issuer's management. Continuous interaction with those bodies and structures ensures that the risk assessment is subject to continual updates; consequently the audit plan may be subject to adjustments during the course of its works and using the same amount of resources.

At the beginning of 2022 the Internal Audit department conducted a review of risk mapping, originally conducted between the end of 2019 and the beginning of 2020, which was used to prepare the new Audit Plan.

In consideration of the changed perimeter of the group to which the Issuer belongs and of the imminent expiration of the mandate for the corporate bodies and for the Head of the Internal Audit Department (the latter expires in June 2022), the Audit Plan submitted to the Board of Directors only covers the current financial year. Three-year planning may return, commencing from the 2023 financial year, in accordance with guidelines indicated in the Audit Plan, save for

possible annual revisions in relation to the development of the corporate structure and related risks.

With regard to activities carried out during the Period, save for some improvements discussed with the heads of the Internal Audit department during assessments, the results of audits demonstrated as a whole that the audit controls are robust. The results of assessments were brought to the attention of the Audit and Control Committee, the Board of Statutory Auditors and the Supervisory Board.

The department also provided audit support in relation to certain organisational development activities, including: a broad ranging project for process improvement, the review of Data Protection documents, the adoption of internal regulations on the extension of Green-pass controls to private companies and finally, an appraisal was commenced with the Quality and Acquisitions departments regarding the monitoring of suppliers intended to activate a Vendor rating process.

Finally, the Internal Audit department has continued to monitor the Whistleblowing process, collecting any reports (two received during the Period), informing the Supervisory Board and monitoring the relative actions required, when necessary.

With regard to training activities, the Internal Audit department, together with the competent structures, carried out some training activities regarding:

• o Whistleblowing;
• o Anti-corruption;
• o Management of Material and privileged information.

The head of the Internal Audit function:

• verifies, on an on-going basis as well as in relation to specific needs and in compliance with International standards, the operations and the suitability of the internal audit and risk management system, through the three-year audit programme approved by the Board of Directors and based on a process for the structured analysis and prioritisation of the main risks;
• prepares the periodic reports setting forth adequate information on its activities, on the methods used to manage risks, on compliance with the predefined plans to contain risks, as well as a valuation of the suitability of the internal audit and risk management system, and submits them, with variable frequency, to the Chairmen of the Board of Statutory Auditors, Internal Audit and Risk Committee, and Board of Directors as well as the Director in charge of the internal audit and risk management system;
• prepares promptly reports on significant events, and submits them to the Chairmen of the Board of Statutory Auditors, Internal Audit and Risk Committee, and Board of Directors as well as the Director in charge of the internal audit and risk management system;

verifies, in the context of the audit plan, and together with the work performed by the external auditing advisor, the reliability of the information technology systems, including the accounting systems.

9.4. COMPLIANCE MODEL PURSUANT TO LEGISLATIVE DECREE 231/2001

The Board of Directors, in compliance with the terms laid down in Article 2.2.3, paragraph 3 (l) of the Stock Market Regulations, approved its Corporate Ethics and Compliance Model in accordance with Article 6 of Legislative Decree 231/2001 (the "Model"), as subsequently amended. The Model was drafted on the basis of the guidelines of the Italian Confederation of Industrialists' and in compliance with applicable legislation.

With the adoption and effective implementation of the Model, the Company will not be liable for offences committed by "top" managers and persons subject to their supervision and instructions.

The Model lays down a series of rules of conduct, procedures and control activities as well as a system of powers and delegated responsibilities whose purpose is to prevent the occurrence of the criminal offences expressly listed in Legislative Decree 231/2001. A disciplinary system has also been introduced to be applied in the event of breaches of the provisions of the Model.

In order to implement the Model, a supervisory body (the "Supervisory Body") was set up, with the functions contemplated in Article 6, subsection 1(b) of Legislative Decree 231/2001. The Supervisory Body is composed of Jean-Paule Castagno, as chairman, Sara Fornasiero and Domenico Sardano, who have been appointed for a term of office ending upon approval of the financial statements for the period ending on 31 December 2021.

Every six months, the Supervisory Body informs the Board of Directors in writing on the implementation and actual awareness of the Corporate Ethics and Compliance Model within each Company department.

The Model has been updated over the years in order to take into account changes introduced from time to time by lawmakers. In particular, at the meeting held on 28 August 2012, the Board of Directors acknowledged and approved a number of amendments to the Model aimed at including environmental crimes among conditions of corporate liability pursuant to Legislative Decree 231/2001. Later, on 27 August 2013, the Model was again updated following the entry into force of Law 190/2012 ("Measures for the repression of corruption"). A further update to the Model was approved by the Company's Board of Directors on 12 November 2015 in order to include the new criminal offence of self-money laundering (art. 648-ter of the Italian Criminal Code). Throughout 2019, the Company has asked the support of the Supervisory Board for updating the Model, in accordance with the new regulatory and organizational changes. During the meeting held on 15 March 2021, the Board of Directors approved the latest updates to the Model, concerning the General Section, the Code of Ethics and the Whistleblowing procedure. At 29 March 2022, the Board of Directors has approved the most recent updates to the Model, which concern the Special Section regarding market abuse, the environment, employment of foreign workers and health and safety in the workplace is still ongoing.

The Model has been published and circulated to all personnel, outside collaborators, customers, suppliers and partners.

Finally, again in the framework of the activities to be carried out in order to implement the Model, the Board of Directors adopted the Landi Renzo group's Code of Ethics, as last amended on 15 March 2021. In fact, as specified in the Italian Confederation of Industries guidelines, the adoption of ethical principles that have a role to play in the prevention of criminal offences is an essential element in a preventive control system. Specifically, the Landi Renzo Code of Ethics sets out corporate values and the combination of rights, duties and responsibilities of its addressees and provides for the imposing of sanctions, independently and autonomously of those laid down in the national collective labour agreement.

Pursuant to article IA.2.10.2, subsection 2, of the Instructions to the Stock Exchange Regulations, on 14 June 2019 the representative Mr Stefano Landi duly certified the Company's approval on 20 March 2008 of the Organizational, Management and Control Model pursuant to article 6 of Legislative Decree 231/2001 and the composition of the Supervisory Body. Said certification is part of the documentation requested annually by Borsa Italiana from those companies listed in the STAR segment, in order that they may remain listed as such.

During the Period, the Supervisory Body met seven times. As of the date hereof, the Board of Directors did not deem it necessary to vest the Board of Statutory Auditors with the functions of supervisory body.

9.5. AUDITING FIRM

On 29 April 2016, at the reasoned proposal of the Board of Auditors, the Shareholders' Meeting appointed the PriceWaterhouseCoopers S.p.A. firm of auditors, with head office at Via Monte Rosa 91, Milan, as the Company's auditors of the statutory and consolidated financial statements for the period 2016-2024 and to carry out limited audits of the Landi Renzo group's consolidated half-year reports during the same period.

On 16 October 2017, auditing firm PriceWaterhouseCoopers S.p.A. was also granted a mandate for a limited review, i.e., limited assurance, for the non -financial consolidated report pursuant to Legislative Decree 254/16 for the financial years from 2017 to 2024.

9.6. EXECUTIVE IN CHARGE OF PREPARING CORPORATE ACCOUNTING DOCUMENTS AND OTHER CORPORATE ROLES AND FUNCTIONS

Chief Financial Officer Paolo Cilloni, executive in charge of the Issuer's administration, finance and control department, was appointed, pursuant to article 154-bis of the Consolidated Finance Act, by the Board of Directors of the Company on 29 April 2019, with the approval of the Board of Auditors, as the Executive in charge of preparing corporate accounting documents, as he satisfies the requirements for the appointment and, in particular, has a proven expertise in accounting and finance, in line with the requirements of Article 24 of the articles of association.

The Board of Directors' meeting of 29 April 2019 granted the Executive in charge of preparing corporate accounting documents, Mr Paolo Cilloni, sufficient resources and powers for him to perform his assigned duties, it being understood that the Managing Director is obliged to report on the matter to the Board of Directors and to ensure that such means and resources are provided and that administrative and accounting procedures are actually observed. In addition, the Board of Directors decided the remuneration the Executive concerned should receive for the performance of these duties.

9.7. CO-ORDINATION OF PERSONS INVOLVED IN THE INTERNAL AUDIT AND RISK MANAGEMENT SYSTEM

As of the date hereof, the Issuer has not considered the adoption of any specific procedure to co-ordinate the various persons involved in the internal audit and risk management system, as it deems that the bodies and various functions are adequately and efficiently integrated with one another, without duplicating any activity.

10. DIRECTORS' INTERESTS AND TRANSACTIONS WITH RELATED PARTIES

In compliance with the Related Party Transactions Regulations and its successive interpretation communications, the Board of Directors has (i) adopted a new internal procedure on 29 November 2010, setting forth the rules and principles to follow to ensure the transparency and fairness, in substance and procedure, of transactions with related parties entered into by Landi Renzo, directly, or through its direct or indirect subsidiaries, most recently revised on 30 June 2021 and (ii) on 29 April 2019 also appointed a Committee for related party transactions composed of two independent directors (Sara Fornasiero and Vincenzo Russi). In accordance with the Related Parties Regulation, the internal procedure was approved by the Board of Directors with the approval of the Committee for Related Party Transactions. Moreover, the internal procedure was most recently revised by the Board of Directors on 30 June 2021 in order to reflect amendments made to CONSOB resolution No 21264 of 10 December 2020. The above procedure applicable to related party transactions is available on the Company's website at www.landirenzogroup.com/it/, in the Investors section.

During the Period, three meetings of the Committee for Related Party Transactions were held for an average duration of 33 minutes and attended by Sara Fornasiero and Vincenzo Russi, further to the members of the Board of Statutory Auditors and the chief financial officer of the Company. The members of the Committee for Related Party Transactions performed induction activities in both 2020 and early 2021 concerning the innovations brought by the legislative decree 49/2019 implementing the SHRD II and by the new Corporate Governance Code. For further information about the induction training sessions held during the Period, see section 4.3 of this Report.

The related party transactions Committee is responsible for ensuring the substantial fairness of transactions with related parties and issuing an opinion on the interests of the company in carrying out the transaction as well as the financial appropriateness (convenienza) and fairness of the relevant conditions. In the case of transactions classified as having Lesser Importance, the Company may in any case precede with the transaction despite an unfavourable opinion of the Committee for related party transactions. In this event, information regarding the transactions approved in the relevant quarter must be provided to the public within fifteen days of the close of each financial quarter, despite the unfavourable opinion, specifying the reasons why the Company did not agree with the opinion of the Committee for related party transactions.

The Board of Directors is exclusively responsible for the approval of Transactions of Greater Importance and the Committee has a broader role. The Committee takes part in the negotiations phase of the transaction, during which it receives full and timely information from the delegated bodies and parties responsible for conducting the negotiations and may request additional information and provide any considerations. In addition, if the Committee for related party transactions gives an unfavourable opinion, the Board of Directors cannot approve the Transactions of Greater Importance.

In urgent circumstances relating to transactions with related parties that are not under the responsibility, or subject to the authorisation, of the shareholders' meeting, the Board of Directors will have the right to approve these transactions with related parties, even where they are implemented through subsidiaries, in derogation of the customary provisions of the internal procedure for related-party transactions adopted by the Company, subject to compliance with and at the conditions set out in the procedure.

On 15 March 2021, the Board of Directors adopted a single set of regulations to define the rules for the operation of that board and its committees, according to which meetings of the committee for related party transactions are subject, mutatis mutandis, to the provisions set out in Section 4.4 of this Report with reference to minuting and procedures for the management of pre-meeting information.

Considering the limited number of circumstances in which a Director has an interest, for his or her account or on behalf of a third party, and because of the adequate functioning of the procedure for related party transactions, the Board of Directors has determined it is not necessary to adopt additional operating solutions to define and to manage circumstances where a Director has an own or third-party interest, which circumstances will be analysed on a case-by-case basis by the Managing Director.

11. BOARD OF STATUTORY AUDITORS

11.1. APPOINTMENT AND REPLACEMENT

Under Article 22 of the Company's articles of association, the Board of Auditors is composed of three Standing and two Alternate Auditors, who can be re-elected.

The Board's functions, duties and term are as laid down by law. When the members of the Board are appointed, the Shareholders' Meeting determines their remuneration, also in the light of their participation in any internal committees. Auditors are entitled to the refund of the expenses they incur in the exercise of their functions.

The members of the Board of Auditors must satisfy the requisites of good character, professionalism and independence required under the law and regulations.

The members of the Board of Auditors are elected, in compliance with gender- balance law in force at the time, from lists presented by the shareholders, in which the candidates must be listed in progressive number order, so that the minority is assured the appointment of one Standing and one Alternate Auditor. The lists must not contain a higher number of candidates than those to be elected.

In addition, where mandatory gender allocation criteria apply, each list with at least three candidates (considering both sections) shall include a number of candidates of the less represented gender equal at least to the minimum number envisaged under applicable law and regulations in force at the time. Should the section of alternate auditors of these lists have at least two candidates, they shall be of different genders.

Shareholders holding, even jointly, at least 2.5% of the share capital representing shares that confer voting rights at shareholders' meetings held to deliberate the appointment of the

members of the governing body, or such other proportion of the share capital as may be determined from time to time by Consob, in accordance with the rules applicable to the Company, may present a list of candidates. The notice calling the shareholders' meeting will state the level of ownership required to present a list of candidates. Such percentage of ownership is consistent with that provided under Article 144-quater of the Issuers' Regulations for companies with market capitalisation of up to Euro 1 billion.

Each shareholder, the shareholders adhering to a shareholders' agreement relevant under Article 122 of the Consolidated Text, the parent company, the subsidiary companies and companies subject to joint control may not present or join in the presentation of more than one list, not even through a third party or a trust company, nor may they vote for different lists, and each candidate may only stand in one list, on pain of ineligibility. Candidatures and votes expressed in breach of this prohibition shall not be attributed to any list.

Lists must be deposited at the Company's registered office at least 25 days prior to the date scheduled as prescribed by law, including regulatory provisions, applicable at the time. The notice calling the shareholders' meeting will provide instructions to allow remote deposit of the list by distance communication. Ownership of the amount of shares required to present a list must be proven with the methods and at the terms required under the law and regulatory provisions in force at the time.

In the event that upon expiry of the term for the presentation of lists only one list has been presented, or only lists presented by shareholders connected with each other under the laws and regulations in force have been presented, it will be possible to present lists until the third day after that date of expiry. In this case, shareholders that, alone or with other shareholders, own overall treasury shares representing half of the share capital threshold specified in the above provisions, may present lists.

If no list is presented, the Shareholders' Meeting adopt resolutions by the statutory majority without observing the procedure described below, provided it complies with the gender-balance requirement specified above, where so required by law and regulatory provisions in force at the time.

In all cases, the following documents must be deposited together with each list and within the times specified above: (i) information regarding the shareholders presenting the list and the total number of shares they hold; (ii) declarations from the individual candidates to the effect that they agree to stand for election and that they certify, on their own responsibility, that there are no causes of their incompatibility or ineligibility, including the accumulation of positions in accordance with the applicable laws and regulations, and also that they satisfy any requirements that may be laid down for the positions involved; and (iii) CVs with full information regarding the personal and professional characteristics of each candidate, specifying the administration and auditing functions exercised in other companies. Lists presented by shareholders other than those holding, even jointly, a controlling or relative majority shareholding must also attach a certificate to the effect that there are no relationships connecting them with controlling or relative majority shareholders in accordance with the regulation in force. Lists presented that do not comply with these provisions shall be considered as not having been presented.

The procedure for the election of the Auditors is as follows:

• (a) from the list that has obtained the highest number of votes (the "Majority List"), two Standing and one Alternate Auditor are taken on the basis of the numerical order in which they appear in the list;
• (b) from the list that has obtained the second highest number of votes, provided that it is not connected in any manner, even indirectly, in accordance with the applicable laws and regulations, with the shareholders that presented or voted for the Majority List (the "Minority List"), the remaining Standing and the other Alternate Auditor are taken on the basis of the numerical order in which they appear in the list.

If the first two, or more than two, lists obtain an equal number of votes, a further ballot by the Shareholders' Meeting will take place, whereby only such lists will be voted for. The same rule applies in the event of an equal number of votes being cast for lists in second place, provided that they are not connected, even indirectly, in accordance with the laws and regulations in force.

In the event that the lists continue to obtain an equal number of votes, the list will prevail that is presented by the shareholders with more equity in the company, or, subordinately, the list that is presented by the greater number of shareholders. In all the events specified above, the composition of statutory auditors shall satisfy the aforementioned gender balance requirements, if so required by the law and regulatory provisions in force at the time.

If the above procedure does not ensure a composition of the Board of Statutory Auditors, in terms of standing members, which complies with the law on gender balance in force at the time, the last elected candidate of the most represented gender (in numerical order) in the Majority List shall be replaced by the first non-elected candidate of the less represented gender (in numerical order) of the same list, or in the absence thereof, by the first non-elected candidate of the less represented gender (in numerical order) of the other lists, based on the number of votes obtained by each of them. This procedure shall apply until a composition of the Board of Statutory Auditors is reached which complies with the law on gender balance in force at the time. Should this procedure not lead to the results specified above, the replacement will be made according to a resolution adopted by the Shareholders' meeting with the relative majority, subject to the presentation of candidates of the less represented gender.

The candidate elected in first place in the Minority List is appointed as the Chairman of the Board of Auditors.

Auditors lose office if they cease to satisfy the requirements laid down by law and in the articles of association.

In the event of the replacement of an Auditor elected from the Majority List, his place is taken by the first Alternate Auditor belonging to the same list as the replaced Auditor, or, if this does not secure compliance with the aforementioned gender balance requirement, the first alternate auditor who, following the numerical order in which the alternate auditors are listed, satisfies such requirement. Should the preceding provisions of this clause be not applicable, the replacement shall be made by the Shareholders' Meeting, which shall adopt resolutions with the majorities set forth by applicable law provisions, subject to the presentation of candidates of the less represented gender.

If Standing and/or Alternate Auditors need to be appointed to make up the number of members of the Board after the replacement of a Standing and/or Alternate Auditor elected in the Majority

List, the Shareholders' Meeting adopts a resolution by the statutory majority, should the application of the criteria set out in the preceding paragraph not result in the integration of the number of members of the Board, without prejudice to the aforementioned gender balance requirement, where so required by law and regulatory provisions in force at the time.

In the event of the replacement of an Auditor elected from the Minority List, his place is taken by the alternate auditor belonging to the same list of the replaced Auditor, or subordinately, by the candidate immediately following in the same list as that of the replaced Auditor, or, again subordinately, by the first candidate in the minority list that obtained the second highest number of votes, without prejudice to the aforementioned gender balance requirement, where so required by law and regulatory provisions in force at the time. In the absence thereof, the replacement shall be made by the Shareholders' meeting, which shall adopt resolutions with the relative majority and in compliance with the above requirements. This does not affect the fact that the Chairman of the Board of Auditors remains the Auditor from the Minority List.

If Standing and/or Alternate Auditors need to be appointed to make up the number of members of the Board after the replacement of a Statutory and/or Alternate Auditor elected in the Minority List, the Shareholders' Meeting adopts a resolution by the statutory relative majority, choosing from the candidates appearing in the list to which the Auditor to be replaced belonged, or appearing in the minority list that obtained the second highest number of votes, without prejudice to the aforementioned gender balance requirement, where so required by law and regulatory provisions in force at the time. In the absence thereof, the replacement shall be made by the Shareholders' meeting, which shall adopt resolutions with the relative majority and in compliance with the above requirements.

When the Shareholders' Meeting is called upon, in accordance with Article 2401, paragraph 1, of the Civil Code, to appoint or replace one of the Auditors elected from the Minority List, any votes cast by shareholders that hold a controlling or relative majority interest, even jointly, are not taken into consideration.

Board of Statutory Auditors' meetings may also be held by audio and video link in accordance with the procedures set forth in the Company Articles of association.

11.2. COMPOSITION AND ACTIVITY OF THE BOARD OF STATUTORY AUDITORS (PURSUANT TO ARTICLE 123-BIS, SUBSECTIONS 2, Letter D) and D-bis) OF THE CONSOLIDATED FINANCE ACT)

The Ordinary Shareholders' Meeting on 29 April 2019 appointed the Company's Board of Statutory Auditors, whose term will expire upon the approval of the financial statements at 31 December 2021.

The members of the Board of Statutory Auditors were elected on the basis of two different lists: (a) two Standing Auditors and one Alternate Auditor were elected from list number 1), presented jointly by the majority shareholders Girefin S.p.A. and Gireimm S.r.l., whilst (b) one Standing Auditor and one Alternate Auditor were elected from list number 2) presented by the minority shareholder Aerius Investment Holding AG.

List number 1) included the following candidates:

Diana Rizzo, born in Bologna, on 21 July 1959, Standing Auditor;

• Domenico Sardano, born in Genova, on 23 September 1970, Standing Auditor;
• Alessandro Levoni, born in Modena, on 17 May 1980, Standing Auditor;
• Marina Torelli, born in Modena, on 29 April 1961, Alternate Auditor; and
• Antonio Cherchi, born in Sassari on 7 September 1954, Alternate Auditor.

List number 2) included the following candidates:

• Fabio Zucchetti, born in Torino on 4 May 1966, Standing Auditor; and
• Gian Marco Amico di Meane, born in Torino on 28 April 1972, Alternate Auditor.

The candidates from the list number 1) were elected with 132,990,260 favourable votes and the candidates from the list number 2) were elected with the 13,101,545 favourable votes. No dissenting votes were cast in respect of the proposed lists. The voting share capital attending the meeting represented 81.62% of the share capital.

Full name	Title	Serving since	% attendance at Board
			of Auditors' Meetings
Fabio Zucchetti	Chairman of the Board	29 April 2019	100%
	of Auditors
Diana Rizzo	Standing Auditor	29 April 2019	100%
Domenico Sardano	Standing Auditor	29 April 2019	87%
Marina Torrelli	Alternate Auditor	29 April 2019	-
Gian Marco Amico di	Alternate Auditor	29 April 2019	-
Meane

As of the date of this Report, the Board of Statutory Auditors is composed as follows:

Members of the less represented gender constitute a third of the standing members and of the alternate members of the Board of Statutory Auditors.

The personal and professional history of each Auditor is briefly set out below, in accordance with Article 144-decies of the Issuers' Regulations.

Fabio Zucchetti. With a degree in Economics and Commerce from the University of Torino, he practices as a certified public accountant since 1993, specialising in corporate tax matters, advising national and international clients. He has served and currently serves as member of the Boards of Directors, Chairman or standing member of the Boards of Statutory Auditors, member of the risk committees and of the committees for related-party transactions in a number of companies, including companies part of international groups, holding companies, regulated companies and listed companies.

Diana Rizzo. With a degree in Economics and Commerce from the University of Modena, she has been practicing as Chartered Accountant since 1983, specialising in the economic, business, and corporate tax fields. She acted as Official Auditor and at present she works as Auditor enrolled in the relevant Register - in which she has been registered since its creation and as Auditor for Local Public Authorities. Since over 35 years, she has been collaborating

with the Courts of Modena and Bologna as expert witness in civil and criminal matters and as expert evaluator, and she also acts as receiver and judicial commissioner. She holds the office as statutory auditor in industrial companies and financial companies.

Domenico Sardano. With a degree in Economics and Commerce from the University of Genova, he worked from 1996 to 1997 as an auditor with the auditing firm of PriceWaterhouseCoopers. Since 1997 he performs his professional activity with the accounting firm Studio Sardano in Genova and in 2000 he became a Chartered Accountant, registering with the Board of Chartered Accountants of Genova. Mr. Sardano acts as Bankruptcy Trustee, Judicial Commissioner and Judicial Liquidator in various insolvency proceedings and often acts as Court-appointed Technical Expert for the Court of Genova. He has also worked with a number of private equity funds. In particular, since 2002 he has developed his professional activity also in the field of structuring private equity and venture capital transactions both by collaborating with some private equity funds, including foreign ones, and by intervening in corporate transactions in the design and/or structuring of private equity and venture capital transactions and more generally of M&A. From 2013 to 2016 he held office as a member of the Council of the Board of Chartered Accountants of Genova. Moreover, Mr. Sardano currently holds office of Statutory Auditor in several industrial companies.

Marina Torelli. With a degree in Economics and Commerce from the University of Modena, she is registered on the Board of Chartered Accountants since 1989 and on the Register of Auditors since 1995. She practices as auditor, and in addition to her legal and accounting audit activity in the context of her offices as statutory auditor for several companies, she also consults and advises on accounting, administrative, financial, contractual, corporate, audit, tax and tax litigations matters. She serves in office as auditor and statutory auditor in industrial and commercial companies. Furthermore, she is Chairman and Managing Director of an industrial company and director in Azienda Speciale di servizi di assistenza agli anziani, a company providing services to the elder.

Gian Marco Amico di Meane. With a degree in Economics and Commerce at the University of Torino, he has been registered with the Board of Chartered Accountants and the Board of Auditors since 2006. From 1997 to 1999 he worked as auditor for auditing firm PriceWaterhouseCoopers in London and Torino. From 1999 to 2004 he worked in the audit sector for Ernst & Young in Torino. Since 2004, he practices with the accounting and audit firm Studio Zucchetti, providing tax and corporate consultancy services, and managing his professional activities for corporates and personally. He currently serves as Chairman of the Board of Statutory Auditors, auditor and director of several industrial companies.

From the close of the Period there have been no changes in the membership of the Board of Statutory Auditors.

As to diversity policies pursuant to Article 123-bis, paragraph 2(d-bis) of the Consolidated Finance Act, on 14 March 2019 , the Board of Directors of the Company has approved a diversity policy applicable to the Board of Statutory Auditors, which includes the following principles:

each member must meet the requirements of good character and professionalism under Decree of the Ministry of Justice no. 162 of 30 March 2000, and Article 148(4) of the Consolidated Finance Act, as well as the independence requirements, and must not hold office as a member of the supervisory body in more than five listed issuers or widely-held

issuers, or hold office as a member of a management or supervisory body in joint stock companies, general partnerships or limited liability companies beyond the maximum limit, equal to six points calculated in accordance with the provisions of Schedule 5-bis, Table 1, of the Issuers' Regulations;

• each member must not have any of the reasons for ineligibility, incompatibility or expiry, under Article 22 of the Company articles of assocation and the applicable provisions of law, including Article 17(5) of Legislative Decree no. 39 of 27 January 2010 on legal audit;
• gender diversity within the Board of the Statutory Auditors must be consistent with the applicable regulations and therefore must ensure that at least one third of the members are members of the less represented gender;
• to ensure a plurality of approaches and views, as well as an adequate degree of efficiency when analyzing the items and subject matters on the agenda, the members should have an adequate degree of diversity and heterogeneity in terms of age, skills and experience, and the presence of professionals who are sufficiently familiar with the peculiar issues affecting listed companies and international groups as well as of professionals who have a strong connection to the industrial sector in which the Company operates should be favoured to the extent possible.

The table below shows the administrative and auditing positions held in listed and unlisted companies by members of the Company's Board of Auditors as of 31 December 2021 (for additional information, see table 3, attached to this Report).

Full name	Company for which the external work is carried out	Title
Fabio Zucchetti	Online SIM S.p.A.	Standing Auditor
	Hyva Capital Equipment S.r.l.	Sole Auditor
	ACB Group S.p.A.	Director
	AMUT S.p.A. Macchine per la lavorazione	Chairman of Board of Statutory Auditors
	delle materie plastiche
	Cesea S.r.l.	Sole Director
	Eredi Campidonico Spa	Director
	Megadyne S.p.A.	Standing Auditor
	Ersel Investimenti S.p.A.	Standing Auditor
	Ersel SIM S.p.A.	Standing Auditor
	Narval Investimenti Spa	Standing Auditor
	Baomarc S.p.A.	Standing Auditor
	Diageo Operations Italy S.p.A.	Director
	Diageo Italia S.p.A.	Director
	Finproject S.p.A.	Standing Auditor
	Padanaplast S.r.l.	Chairman of Board of Statutory Auditors
	Moretta S.s.	Quotaholder Director
	Manval S.s.	Quotaholder Director
	Susa S.s.	Quotaholder Director
	Imm.re Vincoma di AM Chiaberge & C	General partner
	Sas
	Simon Kucher Partners Italia srl	Standing Auditor
	Fudex Group Spa	Standing Auditor
	Banca Albertini Spa	Standing Auditor
	P&C Spa	Standing Auditor
	Imm.re Giorni di AM Chiaberge & C Sas	Limited Partner
Diana Rizzo	OWL S.p.A.	Alternate Auditor
	Autin S.p.A.	Alternate Auditor
	B&C SPEAKERS S.p.A.	Alternate Auditor
	Reno de Medici S.p.A.	Chariman of Board of Statutory Auditors

	Fin Twin S.p.A.	Alternate Auditor
	Finfloor S.p.A.	Alternate Auditor
	Florim Ceramiche S.p.A. socio unico	Alternate Auditor
	LB Officine Meccaniche S.p.A.	Standing Auditor
	TAS S.p.A.	Standing Auditor
	PLT Wind S.p.A.	Standing Auditor
		Chairman of Board of Statutory Auditors
	FinFirel S.p.A.
Domenico Sardano	Finoil S.p.A.	Standing Auditor
	Iplom S.p.A.	Standing Auditor
	Dulevo International S.p.A.	Standing Auditor and member of
		Supervisory Body
	AVM Energia S.p.A. in liquidazione Madonnina S.p.A. per l'Edilizia e	Standing Auditor Standing Auditor
	l'Agricoltura
	Safe S.p.A.	Standing Auditor
	Safe&Cec S.r.l.	Standing Auditor
	Ireos S.p.A.	Standing Auditor
	Centro Calor S.r.l.	Alternate Auditor
	Settala S.r.l.	Sole Auditor
	Tecnogas S.r.l.	Sole Auditor
	Synthesis Chimica S.r.l. RUPE – Residenza Universitaria delle	Sole Auditor Standing Auditor
	Peschiere S.p.A.
	Augusto Parodi Holding	Alternate Auditor
Marina Torelli	T.I.E. S.p.A.	Chairman of Board of Statutory Auditors
		– Auditor
	Assicura S.p.A.	Alternate Auditor
	Emiliana Conglomerati	Standing Auditor
	S.p.A.
	Tecom S.r.l. Firma S.r.l.	Sole Auditor Sole Auditor
	Beiplast S.r.l.	Sole Auditor
	Ciclamini S.r.l.	Sole Auditor
	Coop. Sociale Il Bettolino	Alternate Auditor
	Carpenfer S.p.A.	Alternate Auditor
	Lodi S.p.A.	Alternate Auditor
	C.M.E. S.r.l.	Chairman of the Board of Directors and
		Managing Director
	Società Agricola Bioguss S.r.l.	Sole Auditor
	Azienda Speciale i Millefiori	Director
	Villa Aurora S.r.l.	Sole Auditor
Gian Marco Amico	Amut S.p.A.	Standing Auditor
di Meane
	Bureau Van Dijk S.p.A. Diageo Italia S.p.A.	Standing Auditor Standing Auditor
	Diageo Operations Italy	Standing Auditor
	S.p.A.
	Futura S.r.l.	Director
	Industria Maimeri S.p.A.	Alternate Auditor
	Tecnologie Avanzate Srl	Standing Auditor
	CLN Spa	Standing Auditor
	Rudra Spa.	Standing Auditor
	Logitech Spa.	Standing Auditor
	O.M.S. S.p.A.	Sole Auditor
	Maider IBC S.r.l. Finprojec S.p.A	Chairman of Board of Statutory Auditors Alternate Auditor
	Megadyne S.p.A.	Alternate Auditor
	Sinterleghe S.r.l.	Sole External Auditor
	Pencil S.p.A.	Standing Auditor
	Valbormida S.p.A.	Standing Auditor

Fifteen meetings of the Board of Statutory Auditors were held during the Period, lasting in average 61 minutes each. At least ten meetings of the Board of Auditors are planned for the current year, of which seven were already held on 19 January, 3, 8, 15, 24, 25 and 28 March 2022. Percentages of attendance of individual Statutory Auditors are reported on the table at the end of the Report.

In order to maintain an adequate knowledge of the segment in which the Company is active, periodically and at any time as necessary, the auditors receive information and updates on the segment in which the Issuer operates, on proper risk management criteria and on reference legislation, including through documents prepared by the Company.

The Chairman of the Board of Directors, also through the internal functions of the Company, ensures that the statutory auditors are able to participate to initiatives to allow them to acquire adequate knowledge of the sector in which the Company operates, of the company's dynamics and their evolution, and of the legislative and self-regulatory applicable frameworks. Further information on the induction training sessions held during the Period is set out in section 4.3 of this Report.

On being appointed, the members of the Board of Auditors declared, on their own responsibility, that they satisfied the independence criteria laid down in applicable laws and regulations.

The Board of Statutory Auditors, both during the Period and at the first meeting after the appointment of the Board of Statutory Auditors, verified continuing compliance of its members with independence requirements, in line with the criteria set out in the CG Code, and submitted the results of its assessment to the Board of Directors. Moreover, at the meeting on 29 April 2019, the Board of Directors verified that the members of the Board of Statutory Auditors met the independence requirements; given that it was the first verification following their appointment, a press release announcing the results was published on the same date.

The remuneration of Auditors is commensurate to the requisite commitment, the relevance of their function and the Company's characteristics in terms of size and business segment.

According to Recommendation No 37 of the CG Code, Auditors that have an interest, either on their own account or on behalf of third parties, in a certain transaction to be carried out by the Issuer must give the other Auditors and the Chairman of the Board of Directors prompt and full information regarding the nature, the terms, the origin and the scope of their interest.

The Board of Auditors satisfied itself concerning the independence of the auditing firm, verifying both compliance with the regulatory provisions governing the matter and the nature and extent of the services other than accounts audit provided to the Issuer and its subsidiaries by the auditing firm and the offices belonging to its network.

In carrying out its business, the Board of Auditors cooperated with the Audit and Risk Committee, the Supervisory Body and the head of the internal audit.

12. RELATIONS WITH SHAREHOLDERS

Access to information

The Issuer has set up a special section called "Investors" in its website, easily identifiable and accessible, which provides the information regarding the Issuer that is of importance to its Shareholders in order to enable them to exercise their rights knowledgeably.

Mr Paolo Cilloni (Chief Financial Officer of the group to which the Issuer belongs) has been made responsible for the management of relations with Shareholders, acting as Investor Relations Manager.

Dialogue with shareholders

On 12 November 2021, the Board of Directors, upon proposal by the Chairman formulated in agreement with the Managing Director, adopted a policy for the management of dialogue with shareholders, also in consideration of best practice in this area

The aim of the policy is that of encouraging transparency by the Company with respect to the financial community and markets, through the creation, retention and development of active investor confidence. The policy is limited to relationships between the company and investors and to pertinent matters, and therefore matters the responsibility of the Board of Directors and/or its Committees, with reference to corporate governance (including, specifically, the corporate governance system, the appointment, size, professionalism, independence, diversity and composition of the Board of Directors and of the board committees, the succession plan for the Managing Director and key executives), to social and environmental sustainability, to the remuneration policy for Directors and managers with strategic responsibility and to transactions with related parties.

Also in consideration of the individual matter under discussion, dialogue can take place – according to the situation and subject to evaluation by the Company - using one-way procedures i.e. ensuring that only investors illustrate to Directors their vision in relation to specific issues, or using a two-way procedure i.e. ensuring an actual exchange of information between investors and Directors, in a bilateral format and therefore with the participation, on each occasion, of one investor, or of the collective investors, with the simultaneous participation of various investors. Direct interaction between investors and the Board can take place using various procedures and can be commenced: a) upon written request by investors, to be addressed to the Investor Relator, using the contact references and procedures (e.g. e-mail) indicated on the Company website, or b) at the initiative of the Company by the Chairman, in agreement with the Managing Director, also upon request or at the initiative of the Board, through the organisation of collective or bilateral meetings with Investors, which one or more members of the Board may also participate in and, if necessary, with the support of company managers and/or competent company functions.

With the support of the Managing Director the Chairman informs the Board of Directors about developments in and the material content of dialogue with investors, at the first available meeting.

13. SHAREHOLDERS' MEETINGS

With regard to Shareholders' participation in Shareholders' Meetings, Article 11 of the Issuer's articles of association states: "Shareholders with voting rights may take part in Shareholders' Meetings if an attestation confirming their right to participate is provided in accordance with the

terms and conditions set out the laws and regulations from time to time applicable. Each person entitled to vote may be represented at Shareholders' Meetings by third parties by issuing a written proxy in conformity to and within the limits laid down by law. Notice of the proxy can be given to the company electronically, via certified e-mail sent to the company e-mail address set out in the notice calling the shareholders' meeting. The company does not designate a representative to whom to confer proxies from the shareholders".

The Company has decided not to adopt rules for Shareholders' Meetings since it considers that the powers vested by the articles of association in the Chairman of the Meeting, who is responsible for directing the proceedings, including the determination of the order and system of voting, enable the Chairman to ensure that the Meeting takes place in an orderly manner, moreover averting the risks and problems that could arise from a failure on the part of the Meeting to comply with regulatory provisions.

The Board of Directors calls an Ordinary Shareholders' Meeting at least once a year within 120 days after the end of the financial period, or within 180 days if the conditions required under the law are met.

The governing body also calls a Shareholders' Meeting with a single call, either Ordinary or Extraordinary, whenever it deems it appropriate to do so or as required by law, or at the request of at least two members of the Board of Statutory Auditors in accordance with the provisions of current legislation.

Shareholders' Meetings are called by means of a notice specifying the day, hour and venue of the meeting, a list of the items on the agenda, and the other information as required under the applicable law and regulations. The Meeting notice must be published, within the times laid down by the provisions of the applicable legislation, on the website of the Company and as may otherwise be required by the laws and regulations applicable from time to time.

Shareholders that, even jointly, represent at least one-fortieth of the share capital may request items to be added to the agenda, specifying in their request the additional subjects that they propose, or submit proposals on subjects already reflected in the items on the agenda, to the extent permitted, and at the terms and conditions, under the law. Persons entitled to vote may individually submit proposals to be resolved upon by the Shareholders' Meeting.

Requests to add items to the agenda as per the paragraph above, however, are not allowed with regard to matters on which the Shareholders' Meeting, by law, deliberates at the request of the Company Directors or on the basis of a project or report prepared by same, different than the report on the items on the agenda.

Within the terms set forth in the notice of a meeting, those entitled to vote can submit questions relating to the items on the agenda by certified electronic mail, using the specific company address set out for this purpose in the notice calling the Shareholders' Meeting.

The Company is not required to provide an answer if the relevant information is on the company website in a "question and answer format", or if it is so necessary to safeguard confidentiality and the interests of the company.

Both Ordinary and Extraordinary Shareholders' Meetings are at a single convening and are constituted and adopt valid resolutions by the statutory majorities.

The Chairman of the Shareholders' Meeting will ensure that each shareholder has the right to take the floor in relation to the items being discussed by coordinating speakers and managing the evolution of the meeting.

During the Shareholders' meeting, the Board of Directors reported on activities carried out and planned for the future, and took all the necessary steps to ensure that Shareholders were duly provided with the information required in order that they might knowingly take the decisions they were entitled to take. During the Period, five Directors took part in the Shareholders' Meeting.

During the course of the Period a Shareholders' Meeting was held on 30 April 2021 (a closeddoor meeting, through an intervention during the shareholders' meeting exclusively through the designated representative and in accordance with the provisions of Decree Law No 18 of 17 March 2020 on "measures to strengthen the national health service and economic support to families, workers and companies affected by the COVID-19 pandemic emergency" as subsequently amended and restated). The minutes of the meeting were duly published on the Company website and it involved the participation, in the prescribed forms, of six members of the Board in office (including the Chairman of the Board of Directors) and of all members of the Board of Statutory Auditors in office.

During the course of the Period, there were no significant variations in the composition of the Issuer's shareholding structure; the Board of Directors therefore deemed it unnecessary to consider proposing to the Shareholders' Meeting any amendments to the articles of association regarding the corporate model (traditional, one-tier, two-tier), the size, composition and appointment of the Board, and the term of office for its members, the structure of administrative and financial rights attached to shares and the percentages established for the exercise of actions and of the prerogatives safeguarding minority shareholders' interests.

14. FURTHER CORPORATE GOVERNANCE PRACTICES (PURSUANT TO ART. 123-BIS, SUBSECTION 2(A) SECOND PART OF THE CONSOLIDATED FINANCE ACT)

The Issuer has decided not to apply any practice for its corporate governance other than those described in the paragraphs above, and set forth as specific obligations by provisions of laws and/or regulations.

15. CHANGES SINCE THE CLOSING OF THE REFERENCE PERIOD

Save for matters indicated above, there are no additional material changes to the corporate governance system for the Company from the closing of the reference Period to the date of this Report.

16. CONSIDERATIONS ON THE LETTER DATED 3 DECEMBER 2021 FROM THE PRESIDENT OF THE CORPORATE GOVERNANCE COMMITTEE

The recommendations set out in the letter sent on 3 December 2021 by the President of the Corporate Governance Committee were submitted to the attention of the Board of Directors on 29 March 2022 and of the Board of Statutory Auditors on 29 March 2022, as well as to the attention of the Audit and Risk Committee and the Remuneration Committee, for those matters for which each is respectively responsible.

In relation to the first area of improvement identified in the letter and relating to the management of the sustainability of the business activities, the Board of Directors, in the context of determining the strategic, business and financial plans, as well as the guidelines for the internal audit, risk management and remuneration policy, included its assessment of the risk that may be important for the medium- to long-term sustainability. The Company, which has always been active in the field of sustainable motion, recognises that its ability to pursue the creation of value over the long term is very important, also taking into account the interest of the shareholders and therefore it deems sustainability to be fundamental when it determines the corporate and business strategy.

On 12 November 2021, the Board of Directors, upon proposal by the Chairman formulated in agreement with the Managing Director, adopted a policy for the management of dialogue with shareholders, also in consideration of best practice in this area. The aim of the policy is that of encouraging transparency by the Company with respect to the financial community and markets, through the creation, retention and development of active investor confidence. The policy is limited to relationships between the company and investors and to pertinent matters, and therefore matters the responsibility of the Board of Directors and/or its Committees, with reference to corporate governance (including, specifically, the corporate governance system, the appointment, size, professionalism, independence, diversity and composition of the Board of Directors and of the board committees, the succession plan for the Managing Director and key executives), to social and environmental sustainability, to the remuneration policy for Directors and managers with strategic responsibility and to transactions with related parties. Also in consideration of the individual matter under discussion, dialogue can take place – according to the situation and subject to evaluation by the Company, using one-way procedures i.e. ensuring that only investors illustrate to Directors their vision in relation to specific issues, or using a two-way procedure i.e. ensuring an actual exchange of information between investors and Directors, in a bilateral format and therefore with the participation, on each occasion, of one investor, or of the collective investors, with the simultaneous participation of various investors. Direct interaction between investors and the Board can take place using various procedures and can be commenced: a) upon written request by investors, to be addressed to the Investor Relator, using the contact references and procedures (e.g. e-mail) indicated on the Company website, or b) at the initiative of the Company by the Chairman, in agreement with the Managing Director, also upon request or at the initiative of the Board, through the organisation of collective or bilateral meetings with Investors, which one or more members of the Board may also participate in and, if necessary, with the support of company managers and/or competent company functions.

In relation to the second area of improvement identified in the letter and relating to proportionality, on the basis of provisions of the CG Code, the Company qualifies as a "concentrated ownership company" (i.e. a company in which one or more shareholders who participate in a shareholders' voting agreement directly or indirectly hold the majority of votes exercisable in ordinary shareholders' meetings). In consideration of the above, the Board has used certain flexibility options with respect to the provisions of the CG Code relating to concentrated ownership: in this regard please refer to paragraph 4.3 (with reference to the quantitative and qualitative composition of the Board of Directors) and to paragraph 7 (with reference to the Appointments Committee).

With regard to the third area for improvement identified in the abovementioned letter relating to information being made available before meetings, the Board of Directors – similarly to the previous financial year – found that the documents and information necessary to discuss and vote on the items on the agenda for the meetings of the Board of Directors are provided in due time before the date of the meetings (also taking into account the possible need for urgency in relation to certain matters). Generally, the Company believes that it is suitable that the documentation be provided at least three days in advance, and – during the Period – this timing was normally observed. In this respect, it is to be noted that pre-board meeting information has been made easier by the adoption of an IT platform, access to which is reserved exclusively to members of the Board of Directors and the Board of Statutory Auditors. The Board of Directors therefore found that the procedures currently adopted are suitable to ensure that pre-board meeting information is timely, duly complete and easy to use, as confirmed also by the results obtained from the self-evaluation questionnaire by the Directors, who expressed a very favourable opinion on the timing, transmission modalities and contents of the pre-board meeting information. These procedures have been reflected into the new regulation of the Board of Directors, which was adopted on 15 March 2021, in compliance with recommendation no. 11 of the CG Code. In this respect, it should be noted that, in the said Regulation, it is not envisaged that the terms for making available the documentation for the purposes of board resolution can me derogated for confidentiality purposes. Lastly, in the context of the appointment of the new members of the corporate bodies, the Board of Directors deemed suitable to maintain the role of Lead Independent Director, whose responsibilities include contributing to ensure that the Directors are provided with timely and complete information.

In relation to the fourth area for improvement identified in the above-mentioned letter on the appointment and succession of directors, Directors have expressed their full satisfaction with and appreciation of the size, composition and operation of the Board and its Committees. Moreover the Board of Directors decided (i) not to adopt any succession plan for executive directors, as the Issuer is not qualifiable as a large company, since it deems that the replacement procedures adopted are adequate to guarantee the continuity and certainty of corporate governance, and (ii) not to set up an internal committee to manage proposals of appointments because, as of the date hereof, it has not yet deemed it necessary, especially taking into account the Landi Renzo group structure and the Company's ownership structure and (iii) since the Issuer is qualifiable as a concentrated ownership company, that it need not, upon renewal of the Board, express an opinion on the quantitative and qualitative composition of the Board considered optimal.

In relation to the fifth area for improvement identified in the letter, on the remuneration policies, it should be noted that the policy adopted by the Company provides that executive directors holding offices with strategic responsibilities are granted a remuneration consisting of a fixed and a variable component (with the latter being a significant part of the overall remuneration), clearly distinguishing between the fixed component, the short- to medium-term variable component and the long-term variable component. The variable component represents a significant portion of the remuneration granted to directors, as well as directors with strategic responsibilities. Moreover, the variable component is incentivizing, as it conditions payment to the achievement of short-medium and long-term performance objectives, predetermined and clearly defined. The possibility to pay amounts which are not linked to predetermined parameters is limited to exceptional cases. The Board of Directors, as emerged during the selfevaluation, considers the amount of compensation paid to non-executive directors and to members of controlling bodies to be appropriate to the competence, professionalism and commitment required by their office. Also in light of the results of the self-evaluation

questionnaires, upon renewal of the company's bodies, the Company will evaluate whether it is appropriate to adapt the remuneration of committees' chairmen and directors who engage more intensively in governance to the workload required by their role and functions. Currently, termination benefits are only in place for the Managing Director and General Manager of the Company, Cristiano Musi; such benefits are payable on the basis of predetermined criteria and procedures. For further details on the general remuneration policy, the remuneration paid to executive and non-executive directors, as well as to directors with strategic responsibilities, see the report on the remuneration policy and compensation paid published pursuant to Article 123 bis of the Consolidated Finance Act, available for consultation on the Company's website at http://www.landirenzogroup.com/it, Investors section.

TABLES

TABLE 1: INFORMATION ON OWNERSHIP STRUCTURE AT THE DATE OF THIS REPORT

SHARE CAPITAL STRUCTURE

	No. of shares	% of share capital	Listed (specify markets)/ not listed	Rights and obligations
Ordinary shares	112,500,000	100%	Listed (Euronext Milan)	As per Civil Code and regulations
Shares with limited voting rights	-	-	-	-
Shares with no voting rights	-	-	-	-

MAJOR HOLDINGS

Declarant	Direct shareholder	% of issued shares	% of voting capital
Landi Trust (trust regulated by Jersey law, with Stefano Landi	Girefin S.p.A.	68.712	68.712
as trustee)	Gireimm S.r.l.	5.587	5.587
Aerius Investment Holding AG	Aerius Investment Holding AG	8.356	8.356

TABLE 2: STRUCTURE OF THE BOARD OF DIRECTORS AND OF THE COMMITTEES

BOARD OF DIRECTORS											AUDIT AND RISK COMMITTEE		REMUNER. COMMITTEE		RELATED PARTY TRANSACTIONS COMMITTEE
Office	Members	Year of birth	In office since	In office until	First appointed on	List (M/m) *	Exec.	Non exec.	Indip. under Self Reg. Code.	Indip. under Self Reg. Code.	** (%)	No. Of other offices held ***	****	**	****	**	****	**
Honorary Chair	Giovannina Domenichini	1934	Ordinary shareholders'. meeting of 29 April 2019		16/05/2007	M		x			0%	2
Managing Director	Cristiano Musi	1974			28/04/2017	M	x				100%	7
Chairman	Stefano Landi	1958			16/05/2007	M	x				100%	8
Director	Silvia Landi	1960		Approval . of financial statements	16/05/2007	M		x			89%	1
Director	Angelo Iori	1954			29/04/2016	M		x			100%	0	x	100%	x	100%	x
Director	Dario Patrizio Melpignano	1968		as at 31 December 2021	13/11/2020	m		x	x	x	100%	12
Director	Sara Fornasiero	1968			29/04/2016	M		x	x	x	100%	14	x	100%	x	100%	x	100%
Director	Vincenzo Russi	1959			29/04/2019	M		x	x	x	100%	19	x	100%	x	100%	x	100%
Director	Paolo Ferrero	1955			29/04/2019	M		x			100%	0
	Ownership required to present a list of candidates at the last election: 2.5%
	Number of meetings held during the period							BoD: 9				Audit and Risk Cmt: 7		Remun. Cmt: 5		RPT Cmt: 3

NOTE
*	This column shows whether member was elected from the majority shareholder list (M) or the minority shareholder list (m).
**	This column shows the percentage of (Board of Directors' and each committee's) meetings attended by the Director (number of attendances/number of meetings held during actual period of office of the person involved).
***	This column shows the number of offices held as Director or Auditor by the person concerned in other companies listed on regulated markets, including foreign markets, in financial companies, banks, insurance firms or large companies.
****	This column shows with an "X" which Director is a member of this Committee.

TABLE 3: STRUCTURE OF BOARD OF STATUTORY AUDITORS

BOARD OF STATUTORY AUDITORS
Office	Members	Year of Birth	In office since In office until		First appointed on	List (M/m) *	Independence under CG Code	** (%)	Number of other offices held***
Chairman	Fabio Zucchetti	1966			29/04/2019	m	x	100%	24
24	Diana Rizzo	1959	Ordinary shareholders'	Approval of	29/04/2016	M	x	100%	14
Standing Auditor	Domenico Sardano	1970	meeting on 29 April 2019	financial statements as at 31 December 2021	17/10/2017	M	x	87%	11
Alternate Auditor	Marina Torelli	1961			16/05/2007	M	x	N/A	14
Alternate Auditor	Gian Marco Amico di Meane	1972			29/04/2019	m	x	N/A	17
AUDITORS WHO CEASED OFFICE DURING REFERENCE PERIOD
		Ownership required to present a list of candidates at the last election: 2.5%
		Number of meetings held during the period: 15
		NOTE This column shows whether member was elected from the majority shareholder list (M) or the minority shareholder list (m). This column shows the percentage of Board of Statutory Auditors' meetings attended by the Auditor (number of attendances/number of meetings held during actual period of office of the person involved). ** This column shows the number of offices held as Director or Auditor by the person concerned bearing relevance for the purpose of Art. 148-bis of the Consolidated Finance Act.