Elica

Environmental & Social Information • Mar 27, 2020

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

TINFO

DIGITAL
SIGN

Elica S.p.A.

Consolidated non-financial statement as at and for the year ended 31 December 2019

(with independent auditors' report thereon)

KPMG S.p.A. 18 March 2020

KPMG S.p.A. Revisions e organizzazione cantabile Via 1 ° Maggio, 150/A 60131 ANCONA AN Telefono +39 071 2901140 Email it-fmauditaly@kpmg.it PEC kpmgspa@pec.kpmg.it

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

Independent auditors' report on the consolidated nonfinancial statement pursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 and article 5 of the Consob Regulation adopted with Resolution no. 20267 of 18 January 2018

To the board of directors of EL/CA S.p.A.

Pursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 (the "decree") and article 5 of the Consob (the Italian Commission for listed companies and the stock exchange) Regulation adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited assurance engagement on the 2019 consolidated non-financial statement of the ELICA Group (the "group") prepared in accordance with article 4 of the decree and approved by the board of directors on 12 March 2020 (the "NFS").

Responsibilities of the directors and board of statutory auditors ("Col/egio Sindacale'? ofEL/CA S.p.A. (the "parent'? for the NFS

The directors are responsible for the preparation of an NFS in accordance with articles 3 and 4 of the decree and the "Global Reporting Initiative Sustainability Reporting Standards" issued in 2016 by GRI - Global Reporting Initiative (the "GRI Standards").

The directors are also responsible, within the terms established by the Italian law, for such internal control as they determine is necessary to enable the preparation of a NFS that is free from material misstatement, whether due to fraud or error.

Moreover, the directors are responsible for the identification of the content of the NFS, considering the aspects indicated in article 3.1 of the decree and the group's business and characteristics, to the extent necessary to enable an understanding of the group's business, performance, results and the impacts it generates.

The directors' responsibility also includes the design of an internal model for the management and organisation of the group's activities, as well as, with reference to the aspects identified and disclosed in the NFS, the group's policies and the identification and management of the risks generated or borne.

The Col/egio Sindacale is responsible for overseeing, within the terms established by the Italian law, compliance with the decree's provisions.

KPMG S.p A e una societa per azioni di dirilto italiano e fa parte del network KPMG di entrta indipendenti affiliate a KPMG International Cooperative ('KPMG International'), entit8 di diritto svizzero

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Societa per azioni Capitale sociale Euro 10,345.200,00 i.v. Registro lmprese Milano e Codice Fiscale N. 00709600159 R.E.A. Milano N. 512867 Partila lVA 00709600159 VAT number IT00709600159 Sede legale: Via Vittor Pisani, 25 20124 Milano Ml !TALIA

ELICA Group Independent auditors' report 31 December 2019

Auditors' independence and quality control

We are independent in compliance with the independence and all other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our company applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains a system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditors' responsibilities

Our responsibility is to express a conclusion, based on the procedures performed, about the compliance of the NFS with the requirements of the decree and the GRI Standards. We carried out our work in accordance with the criteria established by "International Standard on Assurance Engagements 3000 (revised) - Assurance Engagements other than Audits or Reviews of Historical Financial Information" ("ISAE 3000 revised"), issued by the International Auditing and Assurance Standards Board applicable to limited assurance engagements. This standard requires that we plan and perform the engagement to obtain limited assurance about whether the NFS is free from material misstatement. A limited assurance engagement is less in scope than a reasonable assurance engagement carried out in accordance with ISAE 3000 revised. and consequently does not enable us to obtain assurance that we would become aware of all significant matters and events that might be identified in a reasonable assurance engagement.

The procedures we performed on the NFS are based on our professional judgement and include inquiries, primarily of the parent's personnel responsible for the preparation of the information presented in the NFS, documental analyses, recalculations and other evidence gathering procedures, as appropriate.

Specifically, we carried out the following procedures:

• 1. Analysing the material aspects based on the group's business and characteristics disclosed in the NFS, in order to assess the reasonableness of the identification process adopted on the basis of the provisions of article 3 of the decree and taking into account the reporting standards applied.
• 1. Analysing and assessing the identification criteria for the reporting scope, in order to check their compliance with the decree.
• 1. Comparing the financial disclosures presented in the NFS with those included in the group's consolidated financial statements.
• 1. Gaining an understanding of the following:
• the group's business management and organisational model, with reference to the management of the aspects set out in article 3 of the decree;
• the entity's policies in connection with the aspects set out in article 3 of the decree, the achieved results and the related key performance indicators;
• the main risks generated or borne in connection with the aspects set out in article 3 of the decree.

ELICA Group Independent auditors' report 31 December 2019

Moreover, we checked the above against the disclosures presented in the NFS and carried out the procedures described in point 5.a).

1. Understanding the processes underlying the generation, recording and management of the significant qualitative and quantitative information disclosed in the NFS.

Specifically, we held interviews and discussions with the parent's management personnel. We also performed selected procedures on documentation to gather information on the processes and procedures used to gather, combine, process and transmit non-financial data and information to the office that prepares the NFS.

Furthermore, with respect to significant information, considering the group's business and characteristics:

• at group and subsidiaries level:
• a) we held interviews and obtained supporting documentation to check the qualitative information presented in the NFS and, specifically, the business model, the policies applied and main risks for consistency with available evidence.
• b) we carried out analytical and limited procedures to check, on a sample basis, the correct aggregation of data in the quantitative information;
• we visited ELICA S.p.A. and AIRFORCE S.p.A., which we have selected on the basis of their business, contribution to the key performance indicators at consolidated level and location, to meet their management and obtain documentary evidence supporting the correct application of the procedures and methods used to calculate the indicators;

Conclusion

Based on the procedures performed, nothing has come to our attention that causes us to believe that the 2019 consolidated non-financial statement of the ELICA Group has not been prepared, in all material respects, in accordance with the requirements of articles 3 and 4 of the decree and the GRI Standards.

Ancona, 18 March 2020

KPMG S.p.A.

(signed on the original)

Gianluca Geminiani Director of Audit