Share capital €178,464,000 fully paid up Registered office: Piazza Vilfredo Pareto, 3 – 46100 Mantova Mantova Register of Companies – Tax code and VAT registration number 07918540019

Half-Yearly Financial Report of the Immsi Group as of 30 June 2023

This Half-Yearly Financial Report as of 30 June 2023 has been translated into English solely for the convenience of the international reader. In the event of conflict or inconsistency between the terms used in the Italian version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the sole official document.

COMPANY BOARDS………………………………………………………….……	page	4
HALF-YEARLY FINANCIAL REPORT OF THE IMMSI GROUP.…………………	page	6
IMMSI GROUP
- Condensed Interim Financial Statements as of 30 June 2023…………………………	page	37
- Notes to the Financial Statements as of 30 June 2023	page	43
- List of companies included in the consolidated financial statements and investments	page	95
CERTIFICATION OF THE CONDENSED INTERIM FINANCIAL STATEMENTS
PURSUANT TO ARTICLE 154-BIS of LEGISLATIVE DECREE 58/98………………	page	98
AUDITORS' REPORT…………………………………………………………	page	99

This document was approved by the Board of Directors of Immsi S.p.A. on 5 September 2023 and is available for the public to consult at the Registered Office of the Company, in the centralised storage system and on the Issuer's website www.immsi.it (section: "Investors/Financial statements and reports/2023") according to legislation.

COMPANY BOARDS

The Board of Directors and the Board of Statutory Auditors of Immsi S.p.A. were appointed by shareholders' resolution of 30 April 2021 and will remain in office until the date the Shareholders' Meeting is convened to approve the financial statements for the year ending 31 December 2023.

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BOARD OF DIRECTORS

Roberto Colaninno *	Chairman
Daniele Discepolo	Deputy Chairman
Michele Colaninno	Chief Executive Officer
Matteo Colaninno **	Director
Ruggero Magnoni	Director
Gianpiero Succi	Director
Patrizia De Pasquale	Director
Paola Mignani	Director
Alessandra Simonotto	Director
Giulia Molteni	Director
Rosanna Ricci	Director
Piercarlo Rossi	Director

BOARD OF STATUTORY AUDITORS

Antonella Giachetti Chairman Alessandro Lai Statutory Auditor Giovanni Barbara Statutory Auditor Gianmarco Losi Alternate Auditor Filippo Dami Alternate Auditor

INDEPENDENT AUDITORS

Deloitte & Touche S.p.A. 2021 - 2029

GENERAL MANAGER

Michele Colaninno

* Died on 18 August 2023

** Appointed on 5 September 2023 Chairman of the Board of Directors

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Immsi Group

Company Boards

In accordance with the principles of Corporate Governance recommended by the Corporate Governance Code (January 2020 version), and pursuant to Legislative Decree 231/01, the Board of Directors has established the following bodies:

RISK AND SUSTAINABILITY COMMITTEE

____________________________________________________________________________________________________ Daniele Discepolo Chairman Paola Mignani Rosanna Ricci

RELATED-PARTY COMMITTEE

Rosanna Ricci Chairman Paola Mignani Patrizia De Pasquale

COMPLIANCE COMMITTEE

Marco Reboa Chairman Giovanni Barbara Maurizio Strozzi

APPOINTMENT PROPOSAL AND REMUNERATION COMMITTEE

Daniele Discepolo Chairman Paola Mignani Rosanna Ricci

LEAD INDEPENDENT DIRECTOR

Daniele Discepolo

CHIEF EXECUTIVE OFFICER

Michele Colaninno

INTERNAL AUDIT MANAGER

Maurizio Strozzi

MANAGER IN CHARGE OF PREPARING THE COMPANY ACCOUNTS

Stefano Tenucci

INVESTOR RELATOR

Stefano Tenucci

All information on powers reserved for the Board of Directors, the authority granted to the Chairman and CEO, as well as functions of various Committees of the Board of Directors, is available in the Governance section of the Issuer's website www.immsi.it.

____________________________________________________________________________________________________

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Immsi Group

Company Boards

____________________________________________________________________________________________________

Half-Yearly Financial Report of the Immsi Group

The Half-Yearly Financial Report for the six months to 30 June 2023 was prepared in accordance with article 154-ter of Legislative Decree 58/1998 as amended, and the Consob Regulation on Issuers.

This Report was prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union, and according to IAS 34 – Interim Financial Reporting, applying the same accounting standards as those adopted when preparing the Consolidated Financial Statements as of 31 December 2022 of the Immsi Group – the "Group" – (to which reference is made for further details), excluding the indications in the Accounting standards and measurement criteria section, if applicable. The information in this Report is not therefore similar to the information of complete financial statements prepared in accordance with IAS 1.

The Group also considered IASB amendments and interpretations applicable as from 1 January 2023 (for more details, reference is made to the Notes to this document), and the interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"), formerly the Standing Interpretations Committee ("SIC").

Health emergency – Covid-19

The epidemiological situation related to the spread of Covid-19 has recently improved and in May 2023, the World Health Organization declared the end of the global health emergency. The Group is closely monitoring developments in the situation and has taken all possible precautions to guarantee employees' health at its offices and its commitments made with the sales network and with customers.

Russia – Ukraine Crisis

The Immsi Group is following the development of the crisis between Russia and Ukraine very closely. In fact, the conflict is generating increases in the costs of raw materials and energy, with significant repercussions on the world economy and on rising inflation, leading central banks in Western countries to start raising interest rates.

The extreme geographical diversification of the Group's sales and purchases means that it has essentially no exposure in the conflict area.

In particular, in the industrial sector, the indirect impacts of the conflict during the first half of the year concerned an increase in the cost of energy, which mainly impacted the European plants of the Piaggio group, and an increase in the cost of raw materials that was partially mitigated by agreements with suppliers, as well as inflationary effects and the increase in interest rates.

Given the current uncertain market environment, the Group's management will continue to constantly monitor the development of the conflict and its direct and indirect effects on the financial statements.

Information on operations

The first half of 2023 for the Immsi Group was characterised by a very positive performance overall, with volumes and financial indicators up on the corresponding period of the previous year.

All indicators were up on the figures for the first half of 2022: turnover increased by 10.2%, EBITDA by 22.8% and net profit, including the portion attributable to non-controlling interests, was €47.1 million in the first half of 2023, compared to €34.4 million in the same period of 2022.

Net financial debt as of 30 June 2023 was equal to €767.2 million, up on the figure for the first half of the previous year (€758.3 million) and at 31 December 2022 (€731.7 million).

Earnings for the period report different trends with reference to the sectors comprising the Group, based on the different business trends of the period in question.

For a clearer interpretation, the following is reported on a preliminary basis:

The "property and holding sector" consolidated the financial position and performance of Immsi S.p.A., Immsi Audit S.c. a r.l., ISM Investimenti S.p.A., Is Molas S.p.A., RCN Finanziaria S.p.A., Apuliae S.r.l. in liquidation and Pietra S.r.l. in liquidation;
the "industrial sector" includes the companies owned by the Piaggio group, while
the "marine sector" includes Intermarine S.p.A..

Some of the main summary data of the Immsi Group, divided by segment of activity, are reported below.

In thousands of Euros	Property and holding sector	as a %	Industrial sector	as a %	Marine sector	as a %	Immsi Group	as a %
Net revenues	1,548		1,172,048		13,843		1,187,439
Operating income before depreciation and amortisation (EBITDA)	-3,916	n/m	191,158	16.3%	-3,831	-27.7%	183,411	15.4%
Operating income (EBIT)	-4,544	n/m	117,580	10.0%	-4,531	-32.7%	108,505	9.1%
Profit before tax	-13,103	n/m	98,163	8.4%	-6,956	-50.2%	78,104	6.6%
Profit (loss) for the period including minority interests	-12,376	n/m	64,788	5.5%	-5,339	-38.6%	47,073	4.0%
Group earnings for the period (which may be consolidated)	-9,326	n/m	32,766	2.8%	-3,871	-28.0%	19,568	1.6%
Net debt Personnel (number)	-314,276 81		-384,428 6,441		-68,537 214		-767,241 6,736

Immsi Group as of 30 June 2023

The same table referring to the first half of the previous year is presented below. A comparison between the two periods is made in the specific comment presented below regarding each business sector:

Immsi Group as of 30 June 2022

In thousands of Euros	Property and holding sector	as a %	Industrial sector	as a %	Marine sector	as a %	Immsi Group	as a %
Net revenues	1,550		1,053,078		22,893		1,077,521
Operating income before depreciation and amortisation (EBITDA)	-2,821	n/m	152,185	14.5%	46	0.2%	149,410	13.9%
Operating income (EBIT)	-3,395	n/m	85,778	8.1%	-1,147	-5.0%	81,236	7.5%
Profit before tax	-9,702	n/m	72,884	6.9%	-2,313	-10.1%	60,869	5.6%
Profit (loss) for the period including minority interests	-8,978	n/m	45,188	4.3%	-1,813	-7.9%	34,397	3.2%
Group earnings for the period (which may be consolidated)	-6,752	n/m	22,790	2.2%	-1,315	-5.7%	14,723	1.4%
Net debt	-304,600		-397,406		-56,251		-758,257
Personnel (number)	98		6,762		228		7,088

It should be noted that the data given in the preceding tables refer to results that can be consolidated, that is, in particular, net of the intergroup revenues and costs and the dividends from subsidiaries.

Alternative non-GAAP performance indicators

To facilitate understanding of the Immsi Group's economic and financial performance, in accordance with ESMA recommendations on alternative performance measures (ESMA/2015/1415), this Report contains some indicators which, although not set out under IFRS ("Non-GAAP Measures"), derive from IFRS financial measures.

These indicators are presented to allow a better assessment of the Group's operating performance and consist of those monitored by management, but should not be considered as an alternative to IFRS measures. They are identical to those contained in the Annual Report and Financial Statements as of 31 December 2022 and in the periodical quarterly reports of the Immsi Group.

It should also be noted that the methods for calculating these measures might not be the same as those adopted by other operators, as they are not specifically governed by the reference accounting standards and therefore might not be sufficiently comparable.

In particular, the following alternative performance indicators have been used:

• EBITDA: defined as operating income before amortisation/depreciation and impairment costs of intangible assets and plant, property and equipment, as reported in the consolidated income statement;

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• Net debt (or net financial position): equal to financial liabilities (current and non-current) including trade payables and other non-current payables that include a significant component of implicit (or explicit) finance, minus cash and cash equivalents, and current financial receivables (ESMA Guidance 2021/32-382-1138). On the other hand, as determined by the Immsi Group, net financial debt does not consider derivative financial instruments designated as hedging and non-hedging, fair value adjustments of the related hedged items and related accruals, fair value adjustments of financial liabilities, payables and accruals for interest accrued on bank loans, interest accrued on loans to third party shareholders.

A detailed table highlighting the items that contribute to the indicator is included in this Report.

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Immsi Group

Condensed Interim Financial Statements and Notes

The property and holding sector

In thousands of Euros	30.06.2023	as a %	30.06.2022	as a %	Change	as a %
Net revenues	1,548		1,550		-2	-0.1%
Operating income before depreciation and amortisation (EBITDA)	-3,916	n/m	-2,821	n/m	-1,095	-38.8%
Operating income (EBIT)	-4,544	n/m	-3,395	n/m	-1,149	-33.8%
Profit before tax	-13,103	n/m	-9,702	n/m	-3,401	-35.1%
Profit (loss) for the period including minority interests	-12,376	n/m	-8,978	n/m	-3,398	-37.8%
Group earnings for the period (which may be consolidated)	-9,326	n/m	-6,752	n/m	-2,574	-38.1%
Net debt	-314,276		-304,600		-9,676	-3.2%
Personnel (number)	81		98		-17	-17.3%

The "property and holding sector" consolidated the financial position and performance of Immsi S.p.A., Immsi Audit S.c.a r.l., ISM Investimenti S.p.A., Is Molas S.p.A., Apuliae S.r.l. in liquidation, Pietra S.r.l. in liquidation and RCN Finanziaria S.p.A.

Overall, the property and holding sector reported a net loss for consolidation purposes in the first half of 2023 of approximately €9.3 million, which was worse than the loss recorded in the same period of the previous year and mainly related to the increase in the cost of debt.

The net debt of the sector was negative for €314.3 million, up both from -€304.6 million as of 30 June 2022 and -€300.9 million as of 31 December 2022, mainly due to the greater use of bank debt also aimed at financing the renovation of the hotel complex of Is Molas S.p.A..

The Parent Company Immsi S.p.A. recorded a net profit for the period of approximately €15.9 million, compared to €10.3 million as of 30 June 2022; the increase is mainly due to higher dividends distributed by the subsidiary Piaggio & C. S.p.A. during the first half of 2023 (€17.9 million) compared with the same period of the previous year (€11.7 million), net of the higher cost of bank debt, which increased by approximately €3.2 million compared to the first half of 2022.

Net debt, including intragroup eliminations, amounted to a negative €8.5 million, compared with a net debt of €0.5 million as of 31 December 2022, mainly due to the dividends paid by Immsi S.p.A. in May 2023 (€13.3 million) and, as mentioned, the interest expense incurred in the first half of the year, which had an impact of approximately €7 million, was only partially offset by the Piaggio dividends referred to above.

The shareholders' equity of the Parent Company Immsi S.p.A. as of 30 June 2023 amounted to €360.3 million, up on the year-end figure of €355.5 million. The change was mainly due to the result for the period offset by the aforementioned dividend distribution and the fair value adjustment of the Unicredit shares held in the portfolio, recognised in the relevant equity reserve.

Lastly, it should be noted that in preparing this Interim Report as of 30 June 2023, the Parent Company did not carry out any specific impairment analyses on the carrying amount of investments held in fully consolidated companies as these investments and any changes arising from the related impairment tests would have been fully eliminated on consolidation.

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Immsi Group Condensed Interim Financial Statements and Notes

With regard to the property initiatives of the subsidiary Is Molas S.p.A., important extraordinary maintenance works were carried out in the first half of 2023 on the existing tourist and hotel facilities to adapt the services to the standards of the identified customer target. The company continued business activities to identify possible buyers, also international, and it decided to allow the mockup villas to be rented out again in 2023 (as in previous years) in order to allow end customers – including any investors – to better understand the product and the associated services offered (e.g. wellness and home catering), so as to be able to assess their profitability. The subsidiary is successfully continuing activities to sell the "Le Ginestre" property complex, which consisted of 50 residential units (residences) and several parking spaces, with the aim of rationalising its property portfolio.

Revenues from tourism, hotels and golf activities in the first six months of 2023 (equal to €1.5 million) were in line with the same period of the previous year. In fact, the decrease recorded in the tourism/hotel sector due to the postponed opening of the hotel compared to the previous year, was entirely offset by the higher sales of the property units of the "Le Ginestre" complex compared to the first 6 months of 2022 (as of 30 June 2023, a total of 30 units of the "Le Ginestre" complex had been sold).

In terms of margins, Is Molas S.p.A. recorded an operating loss of approximately €1.7 million and a net loss for consolidation purposes of €2.7 million, the latter result worsening compared to the corresponding period of 2022 mainly due to the increase in financial charges.

The net debt of Is Molas S.p.A. came to €83.8 million, with a cash absorption of approximately €5.5 million, compared to 31 December 2022 (when it was equal to €78.3 million) mainly due to the cash flow absorbed by investments for hotel renovation works at the Club House and the Beach Club.

With reference to the Pietra Ligure project, following the preliminary agreement signed last July 2021, the direct parent company Pietra S.r.l, signed the closing of the sale agreement with Chorus Life Pietra Ligure S.p.A. (a wholly-owned subsidiary of Polifin S.p.A.), for a total consideration of €30 million for the entire equity investment held in Pietra Ligure S.r.l., into which the Pietra Ligure real estate complex, with the relevant Planning Permission, has been transferred. The contract for the sale of the equity investment was executed in June 2022 and generated an operating gain of about €2.2 million at consolidated level. Following the completion of this sale, the process of putting Pietra S.r.l. into liquidation was started and was completed on 27 July 2023, with the Shareholders' Meeting approval of the related liquidation report.

With reference to the subsidiary Apuliae S.r.l., which has been subject to voluntary liquidation proceedings since April 2023, there are no further updates in addition to the information provided in the Immsi Group Directors' Report and Financial Statements as of 31 December 2022, to which reference should be made. As of 30 June 2023, the company posted a substantial break-even position and net debt that was more or less unchanged compared to 31 December 2022, at a negative value of €1 million.

The other major companies falling within the property and holding sector also include RCN Finanziaria S.p.A. and ISM Investimenti S.p.A.. With reference to main financial data of the company:

• RCN Finanziaria S.p.A., in which Immsi S.p.A. holds 72.51% and Intermarine S.p.A. is the sole member, recorded a net loss for consolidation purposes for the Immsi Group of approximately €3.8 million (up on the figure of approximately €1.9 million recorded in the first half of 2022, mainly due to the increase in interest rates) and net financial debt of €129.3 million as of 30 June 2023, largely unchanged compared to 31 December 2022;

• ISM Investimenti S.p.A., owned by Immsi S.p.A. with a 72.64% stake and parent of Is Molas S.p.A. with a 92.59% stake, recorded a net loss for consolidation purposes for the Immsi Group of approximately €0.8 million parent companies, down by approximately €1.6 million compared with the first half of the previous year. In this regard, in April 2022, Immsi S.p.A. and Intesa Sanpaolo S.p.A. signed a framework agreement to guarantee a future capital stability for ISM Investimenti S.p.A. that would stop interest accruing on the shareholder loans granted and on the Immsi credit line disbursed, binding ISM Investimenti S.p.A. to pay it in the future if certain liquidity events, specified in the agreement, were to occur at ISM Investimenti S.p.A. that would imply sufficient funds to fully cover all suspended interest. Finally, it should be noted that net financial debt as of 30 June 2023, equal to €92.8 million, was substantially in line with the figure as of 31 December 2022.

In thousands of Euros	30.06.2023	as a %	30.06.2022	as a %	Change	as a %
Net revenues	1,172,048		1,053,078		118,970	11.3%
Operating income before depreciation and amortisation (EBITDA)	191,158	16.3%	152,185	14.5%	38,973	25.6%
Operating income (EBIT)	117,580	10.0%	85,778	8.1%	31,802	37.1%
Profit before tax	98,163	8.4%	72,884	6.9%	25,279	34.7%
Profit (loss) for the period including minority interests	64,788	5.5%	45,188	4.3%	19,600	43.4%
Group earnings for the period (which may be consolidated)	32,766	2.8%	22,790	2.2%	9,976	43.8%
Net debt Personnel (number)	-384,428 6,441		-397,406 6,762		12,978 -321	3.3% -4.7%

Industrial sector: Piaggio group

In terms of consolidated turnover, the Piaggio group ended the first half of 2023 with net revenues up 11.3% compared to the same period in 2022.

In terms of geographical areas, the increase affected all markets: EMEA and Americas (+13.7%), India, (+20.0%; +27.5% at constant exchange rates) while Asia Pacific declined slightly (-1.0%; +0.6% at constant exchange rates).

As regards the product type, the growth concerned both two-wheeler vehicles (+9.2%) and commercial vehicles (+21.8%). As a result, the percentage of commercial vehicles accounting for overall turnover went up from 16.8% in the first half of 2022 to the current figure of 18.4%; vice versa, the percentage of two-wheeler vehicles fell from 83.2% in the first six months of 2022 to the current figure of 81.6%.

During the first half of 2023, the Piaggio group sold 324,600 vehicles worldwide, recording an increase of 1.2% compared to the first six months of the previous year, when vehicles sold amounted to 320,600. The growth recorded in Western markets offset the decline of Asian markets.

Regarding product type, sales of Commercial Vehicles went up (+16.6%), while sales of Two-Wheeler Vehicles declined (-1.5%).

Operating income before depreciation, amortisation and impairment costs (EBITDA) of the Piaggio group increased and was equal to €191.2 million as of 30 June 2023 (€152.2 million in the first half of 2022). In relation to turnover, EBITDA was equal to 16.3% (14.5% in the first half of 2022). Operating income (EBIT), which amounted to €117.6 million, also showed a clear improvement compared to the first half of 2022 (€85.8 million); in relation to turnover, EBIT was equal to 10.0% (8.1% in the first half of 2022).

The result of financial activities recorded net charges of €19.4 million (€12.3 million as of 30 June 2022), worsening compared to the first six months of the previous year, mainly due to the increase in interest rates on debt, partially mitigated by the positive impact of currency management.

Net profit stood at €64.8 million (5.5% of turnover), up on the figure for the same period of the previous financial year, when it amounted to €45.2 million (4.3% of turnover).

Net financial debt as of 30 June 2023 of the Piaggio group was equal to €384 million, compared to €368.2 million as of 31 December 2022. The increase of approximately €16.2 million is mainly due to the seasonal nature of two-wheelers which, as is well-known, uses resources in the first part of the year and generates them in the second half.

Net financial debt however decreased by approximately €13.0 million compared to 30 June 2022.

The market

Two-wheeler business

In the first six months of 2023, the Piaggio group sold a total of 267,400 two-wheeler vehicles worldwide, accounting for a net turnover equal to approximately €956.1 million, including spare parts and accessories (€84.2 million, +14.0%).

Overall, volumes decreased by 1.5% while turnover increased by 9.2%.

All markets showed positive trends except India (-31.7% volumes; -28.0% turnover; -23.3% at constant exchange rates) and Asia Pacific (-0.7% volumes; -1.0% turnover; -0.6% at constant exchange rates).

Commercial Vehicles business

During the first six months of 2023, the Commercial Vehicles business generated a turnover of approximately €215.9 million, up by 21.8% compared to the same period of the previous year. Growth was mainly concentrated in the India CGU (+34.7%; +43.1% at constant exchange rates).

The Indian affiliate Piaggio Vehicles Private Limited (PVPL) sold 46,659 three-wheelers on the Indian market (31,645 in the first six months of 2022). The growth in three-wheeler vehicles with electric engines was considerable, going up from 2,194 units in the first half of 2022 to 10,504 units in the current half-year. The Indian affiliate also exported 3,809 three-wheeler vehicles (10,412 in the first half of 2022).

EMEA markets, on the other hand, reported contrasting trends. The increases in turnover of the Americas (+9.6%) and Emea (+1.5%) more than offset the decline in Italy (-1.6%). With regard to volumes, however, the negative performance of the Italian market (-16.7%) and remaining EMEA markets (-7.9%) was only partially offset by the growth of the US market (+4.0%).

The Marine sector: Intermarine

In thousands of Euros	30.06.2023	as a %	30.06.2022	as a %	Change	as a %
Net revenues	13,843		22,893		-9,050	-39.5%
Operating income before depreciation and amortisation (EBITDA)	-3,831	-27.7%	46	0.2%	-3,877	-8428.3%
Operating income (EBIT)	-4,531	-32.7%	-1,147	-5.0%	-3,384	-295.0%
Profit before tax	-6,956	-50.2%	-2,313	-10.1%	-4,643	-200.7%
Profit (loss) for the period including minority interests	-5,339	-38.6%	-1,813	-7.9%	-3,526	-194.5%
Group earnings for the period (which may be consolidated)	-3,871	-28.0%	-1,315	-5.7%	-2,557	-194.5%
Net debt	-68,537		-56,251		-12,286	-21.8%
Personnel (number)	214		228		-14	-6.1%

With reference to the economic data of the marine sector, the first half of 2023 saw a decrease of 39.5% in net revenues (composed of turnover and changes in contract work in progress) compared with the same period of the previous year; this figure stood at €13.8 million, compared with €22.9 million in the first half of 2022.

Production progress, including completion of construction and deliveries, included:

the Defence division, with €6.6 million (18.2 million in the first half of 2022), mainly attributable to progress with job orders for the modernisation of Gaeta Class minesweepers for the Italian Navy, the feasibility studies and experimental tests on new-generation minesweepers and the Temporary Support contract for the special patrol units of the same Navy;.
the Fast Ferries and Yachts divisions, with a total of €7.2 million (4.7 million during the first half of 2022), mainly relating to activities at the Messina shipyard for the design and construction of passenger units.

This resulted in a negative EBIT in the first half of 2023 of €4.5 million (-€1.1 million in the corresponding period of 2022), and a pre-tax loss of €7 million, up from the €2.3 million recorded in the first half of 2022. The net loss for consolidation purposes for the Immsi Group amounted to €3.9 million as of 30 June 2023, compared to a loss of €1.3 million recorded in the first half of 2022.

The total value of the orders portfolio of the company amounted to €34.3 million as of 30 June 2023, referring to the remaining part of existing contracts still to be developed in terms of revenues.

As for capital, net financial debt, equal to €68.5 million as of 30 June 2023, was up slightly compared to the balance as of 31 December 2022 and 30 June 2022, equal to €62.5 and €56.3 million respectively.

Financial situation and financial performance

As described above, in the first six months of 2023, the Immsi Group's economic ratios showed an improvement on the corresponding period of the previous year.

As of 30 June 2023 the structure of the Immsi Group was that attached to this Half-Yearly Financial Report, to which reference is made. The scope of consolidation changed as follows:

the consolidated portion of shareholders' equity of the Piaggio group, which amounted to 50.57% as of 30 June 2023, was equal to 50.57% as of 31 December 2022 and 50.43% as of 30 June 2022. The changes are due to the cancellation of 3,521,595 treasury shares and the buyback of 42,000 treasury shares by the subsidiary Piaggio & C. S.p.A.;
on 14 June 2022, the direct subsidiary Pietra S.r.l. (77.78% owned by Immsi S.p.A. and 22.22% by Intesa Sanpaolo S.p.A.), signed the definitive contract with Chorus Life Pietra Ligure S.p.A. (wholly owned by Polifin S.p.A.) for the sale of the entire equity investment held directly in Pietra Ligure S.r.l.. The resulting liquidation activities of the company Pietra S.r.l. ended on 27 July 2023 with the approval by the Shareholders' Meeting of the related liquidation report.

For further details of changes, see section B of the Notes.

The Group prepares reclassified figures as well as the financial statement schedules required by law. A short description of the main balance sheet and income statement items is provided below the reclassified schedules. Further information on these items may be found in the Notes to the consolidated financial statements. Specific notes referring to the mandatory schedule items are omitted since the main aggregates coincide.

Financial performance of the Group

The below reclassified consolidated income statement of the Immsi Group is classified by the nature of the income components.

In thousands of Euros	30.06.2023		30.06.2022		Change
Net revenues	1,187,439	100%	1,077,521	100%	109,918	10.2%
Costs for materials	752,242	63.3%	688,035	63.9%	64,207	9.3%
Costs for services, leases and rentals	165,512	13.9%	159,979	14.8%	5,533	3.5%
Employee costs	150,210	12.6%	143,126	13.3%	7,084	4.9%
Other operating income	84,502	7.1%	78,858	7.3%	5,644	7.2%
Net reversals (write-downs) of trade and other
receivables	-2,262	-0.2%	-1,976	-0.2%	-250	-12.7%
Other operating costs	18,304	1.5%	13,853	1.3%	4,487	32.4%
OPERATING EARNINGS BEFORE AMORTISATION AND DEPRECIATION
(EBITDA)	183,411	15.4%	149,410	13.9%	34,001	22.8%
Depreciation and impairment costs of plant,
property and equipment	33,933	2.9%	30,587	2.8%	3,346	10.9%
Impairment of goodwill	0	-	0	-	0	-
Amortisation and impairment costs of intangible
assets with a finite useful life	40,973	3.5%	37,587	3.5%	3,386	9.0%
OPERATING INCOME (EBIT)	108,505	9.1%	81,236	7.5%	27,269	33.6%
Income/(loss) from investments	139	0.0%	-80	0.0%	219	-
Financial income	16,097	1.4%	26,981	2.5%	-10,884	-40.3%
Borrowing costs	46,637	3.9%	47,268	4.4%	-631	-1.3%
PROFIT BEFORE TAX	78,104	6.6%	60,869	5.6%	17,235	28.3%
Taxes	31,031	2.6%	26,472	2.5%	4,559	17.2%
PROFIT (LOSS) FOR THE PERIOD FROM
CONTINUING OPERATIONS	47,073	4.0%	34,397	3.2%	12,676	36.9%
Gain (loss) from assets held for sale or disposal	0	-	0	-	0	-
PROFIT (LOSS) FOR THE PERIOD INCLUDING
MINORITY INTERESTS	47,073	4.0%	34,397	3.2%	12,676	36.9%
Earnings for the period attributable to non
controlling interests	27,505	2.3%	19,674	1.8%	7,831	39.8%
GROUP PROFIT (LOSS) FOR THE PERIOD	19,568	1.6%	14,723	1.4%	4,845	32.9%

The Immsi Group's consolidated net revenues increased by approximately €109.9 million (+10.2%) to around €1,187.4 million, mainly due to the contribution of the industrial sector (approximately €1,172.0 million) and the marine sector (approximately €13.8 million). Net revenues from the property and holding sector, equal to around €1.5 million, were in line with the same period of the previous year.

Operating costs and other consolidated Group net costs in the first half of 2023 totalled €1,004.0 million (equal to 84.6% of net revenues), of which €980.9 million relating to the Piaggio group (83.7% of Piaggio group net revenues).

Costs for materials totalled €752.2 million, equal to 63.3% of net revenues. The cost relating to the industrial sector amounted to €744.4 million, equal to 63.5% of net revenues of the sector.

Employee costs totalled €150.2 million, equal to 12.6% of net revenues. The largest part, €141.9 million (12.1% of net revenues of the sector), is attributable to the Piaggio group. The average paid workforce amounted to 6,693 employees compared to 6,748 in the first half of 2022, mainly attributable to the industrial sector. Average employee numbers were affected by seasonal workers in the summer (on fixed-term employment contracts). The Group effectively hires temporary staff to

~ 16 ~

cover peaks in demand typical of the summer months.

EBITDA in the first half of 2023 was approximately €183.4 million, equal to 15.4% of net revenues, compared to €149.4 million in the first half of 2022 (13.9% of net revenues for the period), an increase of €34.0 million (+22.8%).

Depreciation and amortisation for the period stood at €74.9 million (of which €73.6 million relative to the industrial sector), representing 6.3% of turnover, in line with the figure for the first half of 2022. Depreciation of property, plant and equipment amounted to €33.9 million (+€3.3 million compared to the figure for the first half of 2022), while amortisation of intangibles, excluding value adjustments on goodwill, totalled €41.0 million (€37.6 million in the first half of 2022).

EBIT amounted to €108.5 million (+€27.3 million compared to the first half of 2022), equal to 9.1% of net revenues, improving on the figure of 7.5% for the same period of 2022.

EBIT did not include any impairment of goodwill in the first six months of 2022, nor in the same period of the previous year. In particular, as described in the Notes to the consolidated financial statements as of 30 June 2023 (paragraph F1 "Intangible assets"), with reference to goodwill for the GCU relating to the Piaggio Group, Immsi Group management analysed the projection of current and forward-looking result flows with reference to the current year and compared them with the budget and plan data approved at the beginning of 2023 by the Board of Directors of Piaggio for the various geographical areas in which it operates. The outcome of this audit did not require the impairment test to be updated, the results of which are therefore still considered valid as of 30 June 2023, also in consideration of the extent of the cover existing at that date.

Also with reference to goodwill relating to the Intermarine CGU, Immsi Group management, verifying that the results achieved by the company are in line for the first half of 2023 with the 2023-2027 forecast figures approved by the subsidiary's Board of Directors on 10 March 2023 and in light of the update of the main parameters contributing to the determination of the WACC which showed an increase in the same compared to 31 December 2022 not exceeding 0.2%, considered that there was no need to proceed with an update of the impairment test conducted for the purposes of the 2022 consolidated financial statements, thus confirming the relative results, also in consideration of the extent of the cover existing at that date.

Considering that the abovementioned analyses conducted by the Immsi Group cash-generating unit were also determined based on estimates, the Group cannot guarantee that there will be no goodwill impairment losses in future periods. Owing to the current climate of uncertainty on core and financial markets, the various factors – both inside and outside the cash-generating units identified – used in preparing the above estimates could be revised in the future. the Group will constantly monitor these factors and the possible existence of future impairment losses.

Net financial expense amounted to a negative €30.4 million, equal to 2.6% of the Group's net revenues (compared to a net expense of €20.4 million in the first half of 2022), and consists of negative balances of €19.4 million relating to the industrial sector (compared to -€12.9 million in the first half of 2022), €2.4 million relating to the marine sector (compared to €1.2 million in the first half of 2022) and €8.6 million relating to the property and holding sector (up on €6.3 million in the first half of 2022). The net balance of financial management worsened compared to the first six months of the previous year, mainly as a result of higher interest rates on debt, partially mitigated by the positive impact of currency management.

Profit before tax stood at €78.1 million as of 30 June 2023, or 6.6% of net revenues, compared to €60.9 million (5.6% of net revenues) as of 30 June 2022, with the industrial sector contributing a profit of €98.2 million, the marine sector a loss of €7.0 million and the property and holding sector a loss of €13.1 million.

Taxes for the period totalled approximately €31.0 million, compared to 26.5 million as of 30 June 2022.

Net profit for the period, after taxation and net of non-controlling interests, totalled €19.6 million (1.6% of net revenues), an improvement on the figure of €14.7 million as of 30 June 2022.

Reclassified statement of financial position of the Group

In thousands of Euros	30.06.2023	as a %	31.12.2022	as a %	30.06.2022	as a %

Current assets:
Cash and cash equivalents	267,484	11.0%	263,577	11.1%	251,174	10.4%
Financial assets	0	0.0%	0	0.0%	0	0.0%
Operating activities	734,770	30.2%	653,509	27.6%	720,385	29.9%
Total current assets	1,002,254	41.2%	917,086	38.7%	971,559	40.3%

Non-current assets:
Financial assets	0	0.0%	0	0.0%	0	0.0%
Intangible assets	900,847	37.0%	897,337	37.9%	891,599	37.0%
Property, plant and	365,115	15.0%	369,668	15.6%	368,935	15.3%
equipment
Other assets	166,809	6.9%	186,229	7.9%	176,382	7.3%
Total non-current assets	1,432,771	58.8%	1,453,234	61.3%	1,436,916	59.7%
TOTAL ASSETS	2,435,025	100.0%	2,370,320	100.0%	2,408,475	100.0%

Current liabilities:
Financial liabilities	458,543	18.8%	400,096	16.9%	420,175	17.4%
Operating liabilities	909,884	37.4%	895,063	37.8%	919,441	38.2%
Total current liabilities	1,368,427	56.2%	1,295,159	54.6%	1,339,616	55.6%

Non-current liabilities:
Financial liabilities	576,182	23.7%	595,176	25.1%	589,256	24.5%
Other non-current liabilities	71,921	3.0%	71,129	3.0%	70,718	2.9%
Total non-current liabilities	648,103	26.6%	666,305	28.1%	659,974	27.4%
TOTAL LIABILITIES	2,016,530	82.8%	1,961,464	82.8%	1,999,590	83.0%
TOTAL SHAREHOLDERS' EQUITY	418,495	17.2%	408,856	17.2%	408,885	17.0%
TOTAL LIABILITIES AND	2,435,025	100.0%	2,370,320	100.0%	2,408,475	100.0%
SHAREHOLDERS' EQUITY

Current assets as of 30 June 2023 amounted to €1,002.3 million, up €85.2 million compared to 31 December 2022, and up €30.7 million compared to 30 June 2022. The increase compared to the end of 2022 is attributable to the growth in trade and other receivables (+€76.2 million), mainly referring to the Piaggio group, due to the seasonality of the business, and to cash and cash equivalents (+€3.9 million).

Non-current assets as of 30 June 2023 stood at €1,432.8 million against 1,453.2 million as of 31 December 2022, a decrease equal to €20.5 million.

In particular, among non-current assets, intangible assets amounted to €900.8 million, up by €3.5 million compared to 31 December 2022, mainly due to the capitalisation in the industrial sector of development costs and know-how for new products and new engines. Plant, property and equipment amounted to €365.1 million (decrease of €4.6 million compared to the end of 2022) and other assets amounted to €166.8 million (compared to €186.2 million at the end of 2022), mainly impacted by the reduction in the deferred taxes of Piaggio.

Current liabilities as of 30 June 2023 amounted to €1,368.4 million, an increase compared to 31 December 2022 of €73.3 million, compared to the increase mainly in operating liabilities (+€14.8 million), and financial liabilities from €400.1 million to €458.5 million.

Non-current liabilities as of 30 June 2023 stood at €648.1 million, down by approximately €18.2 million from €666.3 million as of 31 December 2022. Consolidated shareholders' equity attributable to the Group and non-controlling interests totalled €418.5 million as of 30 June 2023, of which €177.3 million was attributable to non-controlling interests.

In thousands of Euros	30.06.2023	as a %	31.12.2022	as a %	30.06.2022	as a %

Current operating assets	734,770	58.4%	653,509	53.9%	720,385	58.2%
Current operating liabilities	-909,884	-72.3%	-895,063	-73.9%	-919,441	-74.3%
Net operating working capital	-175,114	-13.9%	-241,554	-19.9%	-199,056	-16.1%

Intangible assets	900,847	71.6%	897,337	74.1%	891,599	72.0%
Property, plant and	365,115	29.0%	369,668	30.5%	368,935	29.8%
equipment
Other assets	166,809	13.3%	186,229	15.4%	176,382	14.2%
Capital employed	1,257,657	100.0%	1,211,680	100.0%	1,237,860	100.0%

Non-current non-financial liabilities	71,921	5.7%	71,129	5.9%	70,718	5.7%
Capital and reserves of non	177,349	14.1%	168,591	13.9%	173,320	14.0%
controlling interests
Consolidated Group shareholders' equity	241,146	19.2%	240,265	19.8%	235,565	19.0%
Total non-financial sources	490,416	39.0%	479,985	39.6%	479,603	38.7%
Net Financial debt	767,241	61.0%	731,695	60.4%	758,257	61.3%

An analysis of capital employed and its financial cover is presented below:

The following table shows the change in the net financial position for the period:

In thousands of Euros	30.06.2023	31.12.2022	30.06.2022
Cash generated internally	161,244	233,896	129,810
Change in net working capital	-92,299	-6,815	-46,316
Net cash flow generated from operations	68,945	227,081	83,494
Payment of dividends by the Parent Company	-13,281	-10,216	-10,216
Payment of dividends to non-controlling interests by Group companies	-17,528	-26,504	-11,547
Acquisition of intangible assets	-45,091	-88,904	-39,269
Purchase of property, plant and equipment	-25,834	-65,567	-28,397
Net decrease from property disposals	296	16,004	16,382
Acquisition of non-controlling investments, net of disposal	0	-8	-8
Other net movements	-3,053	-19,348	-4,463
Change in net financial position	-35,546	32,538	5,976
Initial net financial position	-731,695	-764,233	-764,233
Closing net financial position	-767,241	-731,695	-758,257

Net financial debt went up from €731.7 million as of 31 December 2022 to 767.2 million as of 30 June 2023, mainly due to cash generated internally (+€161.2 million), more than offset by the working capital dynamics (-€92.3 million), net investments in property, plant and equipment and intangible assets for the period, (-€70.6 million), mainly referring to the Piaggio group and dividends paid to noncontrolling interests (-€30.8 million).

Net debt – analysed below and compared with the same figures as of 31 December 2022, is presented in accordance with the ESMA guidelines 32-382-1138 of 4 March 2021, adjusted as of 30 June 2023, as follows: financial assets and liabilities arising from the assessment at fair value, designated hedging and non-hedging derivative financial instruments, the fair value adjustment of the related hedged items, equal to €0.6 million; payables and accrued interest accrued on bank borrowings for a total of €5.0 million; interest accrued on loans to minority shareholders totalling €6.3 million.

In thousands of Euros	30.06.2023	31.12.2022	30.06.2022
A Cash and cash equivalents	-267,484	-263,577	-251,174
B Cash equivalents	0	0	0
C. Other financial assets	0	0	0
D Total liquidity (A + B + C)	-267,484	-263,577	-251,174

E Current financial payables (including debt instruments, but not including

current portion of non-current financial debt)
- Bonds	0	0	0
- Payables due to banks	268,239	224,127	230,285
- Lease liabilities	8,781	11,611	8,923
- Amounts due to other lenders	66,091	59,077	57,541
F Current portion of non-current financial debt	115,432	105,281	123,426
G Total current financial debt (E + F)	458,543	400,096	420,175

H Net current financial debt (G + D)	191,059	136,519	169,001
I Non-current financial debt (excluding current portion and
debt instruments
- Payables due to banks	309,752	330,344	321,243
- Lease liabilities	19,778	18,920	22,911
- Amounts due to other lenders	141	176	211
J Debt instruments	246,511	245,736	244,891
K Trade payables and other non-current payables	0	0	0
L Non-current financial debt (I + J + K)	576,182	595,176	589,256
M Net financial debt (H + L)	767,241	731,695	758,257

With reference to the breakdown of debt, compared to 31 December 2022, short-term financial debt went up from a balance of €136.5 million to a balance of €191.1 million (i.e. +€54.5 million), with a decrease in medium-to-long term financial debt from €595.2 million to €576.2 million (-€19 million). Further details are provided in the section "G2 – Financial Liabilities" of the Notes to the condensed interim financial statements.

Research, development and innovation activities

The Immsi Group carries out research, development and innovation activities through the Piaggio group which, in the first half of 2023, continued its commitment to maintaining technological leadership in the sector, and through subsidiary Intermarine S.p.A., whose research and development activities mainly concern new projects for vessels and prototypes, production technologies, plant innovations and innovative materials.

For an in-depth analysis of the projects supported by the Group and the resources allocated to them, readers are referred to the section on Products and Services in the Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 of the Immsi Group as of 31 December 2022 and the section on the Product Dimension of the Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 of the Piaggio group as of 31 December 2022.

Risk factors

Due to the nature of its business, the Group is exposed to different types of risks. For this reason, the Group has developed procedures at both the Parent Company level and in its main subsidiaries to manage risks in the most exposed areas. These risks are identified at a strategic, external, operational and financial level, and also take into consideration sustainability issues, in particular socalled "ESG" (Environmental, Social and Governance related) risks, i.e. those related to environmental factors, personnel, social aspects and human rights and the fight against active and passive corruption. Details are provided in the 2022 Consolidated Non-Financial Statement.

Strategic risks

Reputational and Corporate Social Responsibility risk – In carrying out its operations, the Group could be exposed to stakeholders' perception of the Group and its reputation and their loyalty changing for the worse because of the disclosure of detrimental information or due to sustainability requirements in the Non-financial Statement published by Immsi S.p.A. and Piaggio & C. S.p.A., not being met, as regards economic, environmental, social and product-related aspects.

Risks related to defining strategies – In defining its strategic objectives, the Group could make errors of judgment with a consequent impact on its image and financial performance.

Risks related to adopting strategies – In carrying out its operations, the Group could be exposed to risks from the wrong or incomplete adoption of strategies, with a consequent negative impact on achieving the Group's strategic objectives.

External risks

Risks associated with the macroeconomic and geopolitical context – The Group, and the Piaggio group in particular, is exposed to risks deriving from the characteristics and evolutionary dynamics of the economic cycle and the national and international political context. To mitigate any negative effects arising from the macroeconomic and geopolitical context, it continued its strategic vision, diversifying operations at international level - in particular in Asia where growth rates of economies are still high, and consolidating the competitive positioning of its products.

The conflict between Russia and Ukraine has had major worldwide consequences for the economic effects on global markets, especially in terms of increased transport costs, raw material prices and energy prices. The geographical diversification of the Group's sales and purchases means that it has essentially no exposure in the conflict area. The indirect impacts of the conflict mainly concerned the increase in the cost of energy, especially for European plants, and the increase in the cost of raw materials, mitigated for the Piaggio group in part by the agreements entered into with suppliers. It is also reported that the extreme geographical diversification of the Group's sales and purchases means that it has essentially no exposure in the conflict area.

The Group is also constantly monitoring the restrictive measures that are gradually being decided in response to the crisis between Russia and Ukraine so as to comply fully with them.

Risks related to consumer purchasing habits – The success of the Group's products depends on its ability to manufacture products that cater for consumer's tastes and – with particular reference to the Piaggio group – can meet their needs for mobility.

With reference to the subsidiary Intermarine, however, the success of the company in the different lines of business in which it operates depends on the ability to offer innovative and high quality products that guarantee the performance demanded by customers, in terms of lower fuel consumption, higher performance, greater passenger transport capacity, greater cruising comfort, handling and safety of the vessels used, among other things, in the defence and control of territories. If the products of the Immsi Group companies were not appreciated by customers, revenues or, further to more aggressive sales policies in terms of discount drives, margins would be lower, and this would have a negative impact on the related economic and financial situation. To tackle this risk, the Group has always invested in research, development and innovation activities to enable it to optimally meet customer needs and anticipate market trends by introducing innovative products.

Levering customer expectations and emerging needs, with reference to its product range and customer experience is essential for the Piaggipo group to maintain a competitive edge. Through market analysis, focus groups, concept and product testing, investments in research, development and innovation and sharing its roadmap with suppliers and partners, Piaggio aims to capitalise on emerging market trends to renew its own product range. Customer feedback enables Piaggio to evaluate customer satisfaction levels and fine-tune its own sales and after-sales service model.

Risks associated with the high degree of market competition – In addition, the Group is exposed to the actions of competitors that, through technological innovation or replacement products, could obtain products with better quality standards and streamline costs, offering products at more competitive prices.

In the industrial sector, the Piaggio group has tried to tackle this risk, which could have a negative impact on the financial position and performance of the Group, by manufacturing high quality products that are innovative, reliable and safe, and by consolidating its presence in the geographic segments where it operates.

With reference to the marine sector, and the mine sweeping platforms segment, Intermarine has a considerable technological edge over the competition, while the Fast Ferries division is affected in particular by a context in which the owners prefer carrying out repairs on operating vessels rather than investing in new constructions. It has become apparent in the recent period that activities and prospects in the Fast Ferries market are reviving, in the light of the recent requests for tenders received from private shipowners and invitations to tender. The risk could derive from the uncertainties of fitting out the new prototypes and the lack of funds and programmes to renew the fleet on the part of Italian and international shipowners. In this respect, shipowners will now be able to verify and use the availability of financial resources under the NRP.

Risk related to the regulatory and legal framework – Numerous national and international laws and regulations on safety, noise levels, consumption and the emission of pollutant gases apply, in particular to Piaggio products. Strict regulations on atmospheric emissions, waste disposal, the drainage and disposal of water and other pollutants also apply to the group's production sites, as do reporting obligations on sustainability.

Unfavourable changes in the regulatory and/or legal framework at a national and international level could mean that products can no longer be sold on the market, forcing manufacturers to invest to renew their product ranges and/or renovate/upgrade production plants.

To deal with these risks, the Piaggio group has always invested in research and development into innovative products, anticipating any restrictions on current regulations. Moreover, the Piaggio group is not only a member of Confindustria (Confederation of Italian Industry), but also adheres to the most important national and international associations in the automotive sector, such as ACEM, ANFIA and ANCMA, which represent and protect the economic, technical and regulatory interests of the automotive sector in institutional and political forums, with authorities, entities and associations with national and international competence in industrial policy and individual and collective mobility of people and goods.

Finally, the Piaggio group, as one of the sector's leading manufacturers, is often requested to be represented on parliamentary committees appointed to discuss and formulate new laws.

Intermarine is also a member of important trade associations such as Confindustria La Spezia and Messina as well as the AIAD Federation representing Italian Aerospace, Defence and Security Companies.

Risks associated with natural events - As part of the assessment of risks related to climate change, the Piaggio group has not currently identified as relevant risks related to the inability to achieve strategic objectives due to changes in the external context (also taking into account possible impacts on the supply chain) and possible inadequate management of atmospheric emissions.

The process of identifying these risks, as well as the assessments of their relevance and significance, were conducted both on the basis of the internal context as well as on the basis of the dynamics of the reference market, and current regulations.

In this context, it should be noted, however, that as of today the Piaggio group has not yet set specific quantitative targets in terms of reducing greenhouse gas emissions, both direct and indirect. At a strategic level, the Piaggio group intends in any event to pursue the integration of sustainable development principles into its vision and business model in an increasingly precise and consistent way.

In this context it should be noted that the Piaggio group operates through industrial plants located in Italy, India, Vietnam and Indonesia. These sites could be affected by natural events, such as earthquakes, typhoons, flooding and other catastrophes that may damage sites and also slow down/interrupt production and sales.

In this respect, in 2022 the Piaggio group, with the support of a leading consulting firm, carried out a climate risk analysis for the plants in Pontedera (Italy) and Baramati (India). This analysis did not highlight any critical issues related to climatic factors for either production site.

Potential impacts related to the physical risks associated with climate change are managed by the Piaggio group through the continuous renovation of facilities as well as through the stipulation of specific insurance coverage divided among the various sites according to their relative importance.

The outcome of the above-mentioned assessments of the significance of climate change risks was also duly taken into account in the process of defining the assumptions adopted for the preparation of the Business Plan.

Risks related to the pandemic - If a pandemic spreads and measures are adopted by various governments to contain the virus, the Group's businesses could be negatively affected in terms of decreasing revenues, margins and cash flows.

In particular, the Piaggio group would have an impact on the supply chain, production activities and product distribution. Piaggio has tried and is trying to deal with this risk, which could negatively affect the group's financial position and performance following a possible decrease in revenues, profitability and cash flows, thanks to a global sourcing policy, a production capacity distributed on different continents and a sales network present in over 100 nations.

As far as the marine sector is concerned, a continuing Covid-19 health emergency would lead to the interruption or at least the slowdown of commercial programmes with potential customers. The Company believes that all the measures put in place to safeguard and protect the health of workers do not contain elements that could jeopardise the Company's business continuity.

Is Molas, impacted by the spread of the Covid-19 pandemic in terms of hotel opening, a general reduction in the flow of customers during opening periods and in the development of commercial contacts aimed at identifying potential customers of the real estate project, is also scrupulously following all the guidelines and requirements issued by the various authorities to protect its guests and employees.

The Group carefully monitors the development of the health situation and implements all precautions to ensure the health and safety of employees within its plants and to be able to fulfil all its commitments.

Risk related to the adoption of new technologies – The risk related to the adoption of new technologies is associated above all with the Piaggio group, which is exposed to risk arising from the difficulty of keeping abreast with new technologies, both in terms of products and the production process. To deal with this risk, on the one hand, as regards products, the R&D centres in Pontedera, Noale and the PADc (Piaggio Advance Design Center) in Pasadena carry out research, development and testing of new technological solutions, such as those dedicated to electric vehicles. Piaggio Fast Forward in Boston is also studying innovative solutions to anticipate and respond to the mobility needs of the future.

As regards the production process, Piaggio has operational areas dedicated to the study and implementation of new solutions to improve the performance of production facilities, with particular attention paid to sustainability and energy efficiency aspects.

Risks related to the sales network – The Piaggio group's business is closely related to the sales network's ability to guarantee end customers a high quality sales and after-sales service, to build a relationship of trust and lasting. The Piaggio group deals with this risk by defining compliance with certain technical/professional standards in contracts, and implementing periodic controls, reinforced by new IT systems designed to improve network monitoring activities and therefore the level of customer service.

Operating risks

Product-related risks – The Group has to deal with risks related to product defects due to nonconforming quality and safety levels.

The risk for the Piaggio group refers to consequent recall campaigns, that would expose the Piaggio group to: the costs of managing campaigns, replacing vehicles, claims for compensation and above all if faults are not managed correctly and/or are recurrent, damage to its reputation. A product nonconformity may be due to potential errors and/or omissions of suppliers, or internal processes (i.e. during product development, production, quality control).

To mitigate these risks, the Piaggio group has established a Quality Control system, it tests products during various stages of the production process and carefully sources its suppliers based on technical/professional standards. The Piaggio group has also defined plans to manage recall events and has taken out insurance to protect the group against events attributable to product defects.

To deal with product risk, the subsidiary Intermarine instead normally adopts a type of contract that also includes assistance and logistics packages which are formalised in agreements regulating acquired contracts.

Risks related to the production process/business continuity – The group is exposed to risk connected with possible interruptions to company production, due to the unavailability of raw materials or components, skilled labour, systems or other resources.

To deal with these risks, the Group has necessary maintenance plans, invests in upgrading machinery, has a flexible production capacity and sources from several suppliers of components to prevent the unavailability of one supplier affecting company production.

Moreover, the operating risks related to industrial sites in Italy and other countries, as regards the Piaggio group, are managed through specific insurance cover assigned to sites based on their relative importance.

Risks related to the supply chain In carrying out its operations, the Group sources raw materials, semi-finished products and components from a number of suppliers.

As regards the Piaggio group, operations are conditioned by the ability of its suppliers to guarantee the quality standards and specifications requested for products, as well as their delivery times. To mitigate these risks, the Piaggio group qualifies and periodically evaluates its suppliers based on professional/technical/financial criteria in line with international standards.

With reference to the marine sector, Intermarine acquires raw materials, contracts and services from a large number of external suppliers, that have specific competencies, in particular in ship fitting. The close cooperation between producers and suppliers is common in the fields where the company operates and, while it may lead to economic benefits in terms of lower costs and greater flexibility, it also means that companies must rely on these suppliers. Supplier difficulties could have a negative impact, causing interruptions in and/or delays to production activities, with the risk of not meeting deadlines.

Risks related to the environment and health and safety – The Group has production sites, research and development centres and sales offices in different nations and so is exposed to the risk of not being able to guarantee a safe working environment, with the risk of causing potential harm to property or people and exposing the Group to legal sanctions, lawsuits brought by employees, costs for compensation payments and reputational harm.

To mitigate these risks, the Piaggio group adopts a model that is based on environmental sustainability, in terms of safeguarding natural resources and the possibility that the ecosystem might absorb the direct and indirect impact of production activities. Specifically, the Piaggio group seeks to minimise the environmental impact of its industrial activities through careful definition of the technological transformation cycle and use of the best technologies and most modern methods of production.

The subsidiary Intermarine S.p.A. also adopts systems aimed at the most efficient management and monitoring of environmental and health and safety-related risks associated with its production activities. In particular, the shipyards at Sarzana and Messina have Environmental certification (Iso 14001), issued by RINA. Although not yet certified, all sites have also adopted the same Integrated Management System which also covers health and safety (ISO 45001).

The risks related to accidents/injuries sustained by personnel are mitigated by aligning processes, procedures and structures with applicable Occupational Safety laws, as well as best international standards.

These commitments are set out in the Codes of Ethics of Group companies.

For the Piaggio group, these commitments set out in the Code of Ethics and stated by top management in the group's "environmental policy" which is the basis for environmental certification (ISO 14001) and health and safety certification (ISO 45001 and BSOHSAS 18001) already awarded and maintained at production sites, is a mandatory benchmark for all company sites no matter where they are working.

Risks related to processes and procedures adopted – The Group is exposed to the risk of shortcomings in planning its company processes or errors and deficiencies in carrying out operations.

To deal with this risk, the Group has established a system of directives comprising organisational notices and Manuals/Policies, Management Procedures, Operating Procedures and Work Instructions. For the Piaggio group, all documents related to Group processes and procedures are part of the single Group Document Information System, with access that is regulated and managed on the company intranet.

Risks related to delays in the completion of orders – With particular reference to the subsidiary Intermarine S.p.A. operating in the marine industry, any delay in the completion of contracts in progress may lead to customers requesting penalties for late delivery where contractually agreed, with the risk of reducing the overall profitability of orders and reducing financial assets.

On the other hand, the company could pass on the effect of the impact on delivery times, for delays in deliveries and in completing services and for failing to pass tests, with the need to perform the tests again, to its subcontractors.

Risks related to human resources – The main risks the Group is exposed to concerning human resources management include the ability to recruit expertise, professionalism and experience necessary to achieve objectives. To offset these risks, the Group has established specific policies or practices for recruitment, career development, training, remuneration and talent management, which are adopted in all countries where it operates according to the same principles of merit, fairness and transparency, and focusing on aspects that are relevant for the local culture.

The employees of Group companies are protected by laws and collective labour contracts that guarantee them – through local and national representation – the right to be consulted on specific matters, including programmes related to the use of staff in accordance with ongoing job orders.

In Europe, the Piaggio group operates in an industrial context with a strong trade union presence, and is potentially exposed to the risk of strikes and interruptions to production activities.

In the recent past, the Group was not affected by major interruptions to production because of strikes. To avoid the risk of interruptions to production activities, as far as possible, the Group bases its relations with trade union organisations on dialogue.

Legal risks – The Group legally protects its products and brands throughout the world. In some countries where the Group operates, laws do not offer certain standards of protection for intellectual property rights. This circumstance could render the measures adopted by the Piaggio group in particular to protect itself from the unlawful use of these rights by third parties inadequate.

Within the framework of its operations, the Group is involved in legal and tax proceedings. As regards some of the proceedings, the Group could be in a position where it is not able to effectively quantify potential liabilities that could arise. A detailed analysis of the main disputes is provided in the specific section of the Report on Operations.

Risks related to internal offences – The Group is exposed to risks of its employees committing offences, such as fraud, active and passive corruption, acts of vandalism or damage that could have negative effects on its business results in the year, and also harm the image and integrity of the company and its reputation. To prevent these risks, the Group has adopted Models pursuant to Legislative Decree No. 231/2001 and Codes of Ethics which set out the principles and values the entire organisation takes inspiration from.

Risks related to financial disclosure – The Group is exposed to the risk of possible inadequacies in its procedures that are intended to ensure compliance with main Italian and foreign regulations applicable to financial disclosure, running the risk of receiving fines and other sanctions. In particular there is a risk that financial reporting for Group stakeholders is not accurate and reliable due to significant errors or the omission of material facts and that the Group provides disclosure required by applicable laws in a manner which is inadequate, inaccurate or untimely.

It should be noted that the control activity provided for by Law 262/2005, in addition to referring to the Parent Company, is also extended to the Group's most important subsidiaries. The Group also has an internal audit function, while the financial statements are audited by the Independent Auditors.

ICT system risks - With reference to this category, the main risk factors that could compromise the availability of the Group's ICT systems include cyber attacks, which could cause the possible interruption of production and sales support activities or compromise the confidentiality, integrity and availability of personal data managed by the Group.

To mitigate these risks, Piaggio group has adopted a centralised system of controls to improve the Group's IT security.

Other risks – In the specific case of the Parent Company Immsi S.p.A., in consideration of its nature as a holding company and the different phase of development and advancement of investments made both directly and through subsidiaries, its financial performance and profitability are strictly related to the financial performances of subsidiaries.

Financial risks

Risks related to insufficient cash flows and access to the credit market – At the end of the reporting period, the main sources of Group financing were:

debenture loans for a nominal amount of approximately €250 million issued by Piaggio & C. S.p.A.;
bank loans for a nominal amount of approximately €694.7 million. The type, rates and maturities of these loans are discussed in the Notes.

In addition, the Group has outstanding amounts due for leases, amounts due to subsidiaries not fully consolidated and amounts due to other lenders for an overall amount of approx. €94.8 million.

The Group is exposed to the risk arising from the production of cash flows that are not sufficient to guarantee Group payments due, with effects on adequate profitability and growth such as to guarantee the pursuit of strategic objectives. Moreover, this risk is connected with the difficulty the Group may have in obtaining loans or a worsening in conditions of loans necessary to support Group operations in appropriate time frames. The debt indicated above could also negatively affect Group operations in the future, limiting its capacity to obtain further financing or to obtain it at more favourable conditions. In particular, over the next 12 months, together with the short-term instalments of medium- and long-term loans, several short-term credit lines will expire, the renewal of which is crucial to be able to continue operating. A detailed examination of these lines is provided in the Notes.

To face this risk, the Group's cash flows and credit line needs are monitored constantly by management or, in the case of the Piaggio group, managed centrally under the control of the Piaggio group's Treasury Department, in order to guarantee an effective and efficient management of financial resources, as well as optimise the debt's maturity standpoint. The group also has undrawn credit lines, sufficient to enable it to manage with any unforeseen cash requirements. In addition, Piaggio & C., parent company of the Piaggio group, finances the temporary cash requirements of its subsidiaries through the direct provision of short-term loans regulated at market conditions or through guarantees.

To deal with this risk, Intermarine also monitors and strictly manages the company's cash flow and credit line needs with the aim of ensuring an effective and efficient management of financial resources as well as optimising the debt's maturity standpoint.

The Parent Company Immsi S.p.A. supports, where necessary, its subsidiaries in the "Property and Holding" and "Marine" sectors through credit lines in order to guarantee support for the implementation of their development plans.

Also with reference to the net financial indebtedness of the above-mentioned Sectors, reference should be made to the section of the Notes to the Financial Statements entitled "Accounting standards and measurement criteria".

Exchange rate risks – The Group, primarily through Piaggio group companies, undertakes operations in currencies other than the Euro and this exposes it to the risk of fluctuating exchange rates of different currencies. Exposure to business risk consists of envisaged payables and receivables in foreign currency, taken from the budget for sales and purchases reclassified by currency and accrued on a monthly basis. With reference to the Piaggio group, the policy is to hedge at least 66% of the exposure of each reference month. Exposure to the settlement risk consists of receivables and payables in foreign currency acquired in the accounting system at any moment. The hedge must at all times be equal to 100% of the import, export or net settlement exposure for each currency. During the first half of 2023, the exchange risk was managed in line with the policy, which aims to neutralise the possible negative effects of exchange rate changes on company cash-flow, by hedging the business risk which concerns changes in company profitability compared to the annual business budget on the basis of a key change (the so-called "budget change") and of the transaction risk, which concerns the differences between the exchange rate recorded in the financial statements for receivables or payables in foreign currency and that recorded in the related receipt or payment.

Interest rate risks – The Group has assets and liabilities which are sensitive to changes in interest rates and are necessary to manage liquidity and financial requirements. These assets and liabilities are subject to an interest rate risk and are hedged by derivatives or, where necessary, by specific fixed-rate loan agreements. For a more detailed description, please refer to the Notes to the Condensed Consolidated Interim Financial Statements.

Credit risk – The Group is exposed to the risk of late payments of receivables. This risk is connected with any downgrading of the credit rating of customers and consequent possibility of late payments, or the insolvency of customers and consequent failure to receive payments. To balance this risk, the Group evaluates the financial reliability of its business partners. The Group, in particular the companies Piaggio & C. S.p.A. and Intermarine S.p.A., also stipulates contracts with important Italian and foreign factoring companies for the sale of trade receivables without recourse.

Risks related to deleverage – This risk is connected with compliance with covenants and targets to reduce loans, to maintain a sustainable debt/equity balance.

To offset this risk, the measurement of financial covenants and other contract commitments is monitored by the Group on an ongoing basis.

Immsi Group

Condensed Interim Financial Statements and Notes

Human resources

As of 30 June 2023, the Immsi Group employed 6,736 staff, of which 81 in the property and holding sector, 6,441 in the industrial sector (Piaggio group) and 214 in the marine sector (Intermarine S.p.A.). The following tables divide resources by category and geographic segment:

Human resources by category

numbers	30.06.2023
	Property and	Industrial	Marine sector	Group total
	holding sector	sector
Senior management	4	113	7	124
Middle managers and white-collar workers	31	2,340	130	2,501
Blue-collar workers	46	3,988	77	4,111
TOTAL	81	6,441	214	6,736
numbers
	31.12.2022			Group total
	Property and holding sector	Industrial sector	Marine sector
Senior management	4	116	7	127
Middle managers and white-collar workers	24	2,284	132	2,440
Blue-collar workers	21	3,438	83	3,542
TOTAL	49	5,838	222	6,109

numbers	Changes
	Property and	Industrial	Marine sector	Group total
	holding sector	sector
Senior management	0	-3	0	-3
Middle managers and white-collar workers	7	56	-2	61
Blue-collar workers	25	550	-6	569
TOTAL	32	603	-8	627

Human resources by geographic segment

numbers	30.06.2023
	Property and	Industrial	Marine sector	Group total
	holding sector	sector
Italy	81	3,554	214	3,849
Rest of Europe	0	160	0	160
Rest of the world	0	2,727	0	2,727
TOTAL	81	6,441	214	6,736
numbers	31.12.2022
	Property and	Industrial	Marine sector	Group total
	holding sector	sector
Italy	49	2,989	222	3,260
Rest of Europe	0	159	0	159
Rest of the world	0	2,690	0	2,690
TOTAL	49	5,838	222	6,109
numbers		Changes
	Property and	Industrial	Marine sector	Group total
	holding sector	sector
Italy	32	565	-8	589
Rest of Europe	0	1	0	1
Rest of the world	0	37	0	37
TOTAL	32	603	-8	627

Immsi Group

Condensed Interim Financial Statements and Notes

Employee numbers were also affected by seasonal workers in the summer (on fixed-term employment contracts). The Group effectively hires temporary staff to cover peaks in demand typical of the summer months.

For further information on Group employees (such as remuneration and training policies, diversity and equal opportunities, safety, etc.), reference is made to the section on the Social Dimension in the Consolidated Non-Financial Statement at 31 December 2022 prepared pursuant to Legislative Decree 254/2016.

Stock options

As of 30 June 2023, Immsi S.p.A. had no existing stock option plan.

With reference also to the subsidiary Piaggio & C. S.p.A., as of 30 June 2023 there were no incentive plans based on the allocation of financial instruments.

Own shares

As of 30 June 2023, Immsi S.p.A. held no treasury shares. The share capital of Immsi S.p.A. is unchanged at €178,464,000.00, represented by 340,530,000 ordinary shares with no nominal value.

Furthermore, the Ordinary Shareholders' Meeting of Immsi S.p.A. of 28 April 2023 approved a plan for the purchase and disposal of ordinary shares of the Company, revoking the previous authorisation of the Ordinary Shareholders' Meeting of Immsi S.p.A. of 29 April 2022.

On 12 May 2023, following the aforementioned approval at the Shareholders' Meeting, the Board of Directors of Immsi S.p.A. resolved to start a treasury share purchase programme; this is a useful strategic investment opportunity for all purposes allowed under applicable laws, including those envisaged in Article 5 of Regulation (EU) 596/2014 (Market Abuse Regulation, "MAR") and in the practices permitted by Consob pursuant to Article 13 of the MAR, where applicable. Among these is the purpose of purchasing treasury shares with a view to their subsequent cancellation.

The purchase of shares connected with the adoption of the programme will be based on the procedures and limits established by the above-mentioned resolution of the shareholders' meeting and specifically:

the purchase may concern a maximum of 10,000,000 Immsi ordinary shares, with no nominal value indicated, for a maximum value of €10 million and, therefore, within the limits established by law (20% of the share capital, pursuant to Art. 2357, paragraph 3, of the Italian Civil Code);
the purchase of treasury shares must be within the limits of profit that may be distributed and available reserves as resulting from the last, also interim, financial statements approved at the time the operation takes place;
purchases of treasury shares will be made on the regulated market in such a way as to ensure equal treatment of shareholders pursuant to Article 132 of Legislative Decree 58/1998, with a gradual approach deemed appropriate to the interests of the Company and as permitted by current legislation, according to the procedures established in Article 144-bis, paragraph 1, letter b) of Consob Regulation 11971/1999, as subsequently amended. Purchases should also take into account the conditions relating to negotiation referenced in Article 3 of the Commission Delegated Regulation (EU) 1052/2016 ("Regulation 1052") in compliance with the MAR, as well as the practices accepted by Consob pursuant to Article 13 MAR, where applicable (i) to a consideration that is no higher than the price of the last independent transaction or the price of the highest independent offer currently available in the trading venues where the purchase is made (whichever is higher). The unit price cannot in any case be less than a minimum of 20%

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and a maximum of 10% higher than the arithmetic mean of the official Immsi share price in the ten trading days prior to each individual purchase; (ii) for volumes of more than 25% the average daily volume of Immsi S.p.A. shares traded on a regulated market on which the purchase is carried out, calculated according to the parameters as of Art. 3 of Regulation 1052;

• the purchase programme may also take place in several tranches, ending by 27 October 2024.

With reference to the subsidiary Piaggio & C. S.p.A., as of 30 June 2023, the subsidiary held 42,000 treasury shares, equal to 0.0118% of shares issued.

Management and coordination

The parent company, Immsi S.p.A., gives reasons why management and coordination activities were not performed by its parent company Omniaholding S.p.A (also via the subsidiary Omniainvest S.p.A) in section 2, letter j), of the Report on Corporate Governance and Ownership as of 31 December 2022. Please refer to this for further information.

Related Party Transactions

Revenues, costs, payables and receivables as of 30 June 2023 involving parent, subsidiary and associate companies, refer to the sale of goods or services which are a part of normal operations of the Group.

Transactions are carried out at normal market values, depending on the characteristics of the goods and services provided.

Information on related-party transactions, including the information required by Consob communication no. DEM/6064293 of 28 July 2006, is presented in the notes to the Condensed consolidated interim financial statements as of 30 June 2023.

Disputes in progress

For information on disputes taking place at a Group level, reference is made to the Directors' Report on Operations of the Immsi Group as of 31 December 2022, in the section entitled "Disputes in progress", with the exception of more important aspects, which are reported below.

With reference to the property sector (Is Molas S.p.A.):

• In the lawsuit brought by Is Molas claiming compensation for damages suffered due to the breach by Italiana Costruzioni of the obligations deriving from signed contracts, it should be noted that on 10.05.2023 the hearing was held to examine the expert witness report, after extensive discussion and without all the parties agreeing on the acceptance of the settlement proposal formulated in the report, the Judge ended the hearing, stating that a judgement would be made after careful analysis of the documents.

On 16.05.2023, a copy of the Judge's order was sent, which, considering the request of the lawyers to renew the Expert Witness appointment as inadmissible, requested the parties to reach a settlement. This proposal was not successful, so the dispute is still ongoing.

• With regard to the Order of 21 May 2014 in which the Administrative Appeals Court rejected the request for suspension of the measure of the Municipality of Pula, which declared that there were insufficient elements to determine the forfeiture of the authorisations. The Administrative Appeals Court, in its ruling of 9 June 2016, declared the action brought by Italiana Costruzioni inadmissible and ordered the appellant to pay the costs of the proceedings in favour of the opposing parties. On 12 January 2017, Italiana Costruzioni was notified of its appeal to annul the Administrative Appeals Court ruling. On 14 February 2017 Is Molas filed the documents with the Council of State to oppose the appeal. The hearing for the discussion of the appeal was held on 26.01.2023; while on 02.05.2023 the judgment rejecting the appeal of Italiana Costruzioni and the order to pay the court costs was filed.

As regards the industrial sector (Piaggio group):

On 28.11.2022, the Court of Appeal of Florence partially upheld the grounds of the main appeal (i.e. of Piaggio) and incidental appeal (i.e. of Da Lio) and, as a result: (i) reduced the order for Piaggio, to pay the lesser amount of approximately €3 million in respect of "default interest and penalties on invoices paid late" compared with the previous amount of approximately €4.3 million (without prejudice to other items of the order); (ii) declared that the sum owed by Piaggio for unpaid invoices amounts to approximately €0.36 million and (iii) declared that (only) interest is to be calculated on the sums owed by Piaggio as a penalty for invoices paid late legal with effect from the judicial request rather than from the ruling. Piaggio appealed against the judgment before the Court of Cassation on 14 March 2023, which was followed by Da Lio's cross-appeal.
The company TAIZHOU ZHONGNENG appealed to the Court of Cassation, to which Piaggio filed a counter-appeal on 05.09.2019. The Court of Cassation then set a hearing for 22.11.2022, after which it ordered a new hearing, in public session, for 17.10.2023.
In its ruling of 18.01.2023, the Court of Appeal of Milan confirmed, in the appeal proceedings brought by Piaggio against the companies PEUGEOT MOTOCYCLES ITALIA S.p.A., MOTORKIT S.a.s. di Turcato Bruno e C., GI. PI. MOTOR di Bastianello Attilio and GMR MOTOR S.r.l. the first instance ruling. In particular, it (i) ruled out the existence of infringement of the three patents, deeming the objections of invalidity of EP'794, EP'016 and IT'114 raised by Peugeot to be disregarded, and (ii) rejected Piaggio's claims of infringement of the Community design and unfair competition, considering that the Court of First Instance was correct in its ruling on this point. As at 30.06.2023, no party had appealed to the Court of Cassation.
On 16.01.2023 the Court of Appeal of Milan ruled on the proceedings brought by PEUGEOT MOTOCYCLES S.a.s., Appeal rec. 3052/2021 (i.e.: the judgment of appeal on the joined cases of infringement and nullity) and: (i) upheld the first instance ruling with reference to the finding of validity of EP'612 and the existence of the literal infringement of claims 1, 2 and 5 of the patent by Metropolis (ii) upheld the measures of the injunction and withdrawal from the market ordered by the Court of First Instance but, unlike the first instance ruling, limited the order of withdrawal from the market only to Peugeot Motocycles Italia S. r.l. in liquidation (iii) also rejected Peugeot's sixth ground of appeal (iv) ordered the general order against Peugeot Motocycles Italia S.r.l. in liquidation (v) ordered, by separate order, the continuation of the case for the determination of the indemnifiable damage. The expert witness report is ongoing. In the meantime, Peugeot appealed before the Court of Cassation against the non-final ruling, which was followed by Piaggio's counter-appeal.

Piaggio also started legal action against PEUGEOT MOTOCYCLES S.a.S. before the Tribunal de Grande Instance in Paris. In a ruling of 07.09.2021, the Court of Paris ruled in favour of Piaggio ordering Peugeot Motocycles to pay compensation for damages amounting to €1.5 million, in addition to further fines and legal costs, ordering a ban on Peugeot Motocycles manufacturing, promoting, marketing, importing, exporting, using and / or possessing in French territory any three-wheeler scooter that uses the control system patented by Piaggio (including the Peugeot Metropolis). Piaggio appealed for the provisional enforceability of the first instance ruling with a hearing held on 08.02.2022. The Court rejected the application to grant Piaggio provisional enforceability with a decision on 8.03.2022. At the same time, Peugeot appealed against the ruling in the first instance and Piaggio appeared in the appeal proceedings. On 01.06.2022, Piaggio filed the first defence brief in which it insisted on rejecting the appeal presented by Peugeot. Peugeot has requested that a new expert witness report be arranged; the request was rejected on 10 January 2023. A final hearing was set for 29.05.2024, with a deadline of 14.11.2023 for filing final papers.
On 28 September 2022, Piaggio Fast Forward (PFF) was sued by Hood Park, LLC ("Hood") before the Business Litigation Session of the Superior Court of Massachusetts, located in Suffolk County, in civil action No.: 2284CV02233 BLS2. Piaggio Group Americas Inc. ("PGA") is also defendant as guarantor.

Hood owns a commercial property that PFF had planned to lease as its main operational headquarters. At Hood's request, PFF forwarded - via its broker - a copy of a page of the signed contract, but pointing out that PFF's acceptance of the entire contract would be subject to prior agreement on the termination clause now mentioned. Nevertheless, Hood asserted that this was now to be considered as signed and, therefore, binding. Hood then sued PFF (as well as PGA as guarantor) demanding payment of the full amount of the lease payments, amounting to USD 24,831,856.49 plus any multiplication, interest and all costs, including legal fees.

On 22 December 2022, the defendants PFF and PGA filed a motion to dismiss. The hearing, originally set for 10.01.2023, was then postponed to 20.03.2023 and then again to 01.05.2023. On 02.05.2023, the Court granted the defendants' motion to dismiss and, dismissed all claims of Hood Park, which failed to appeal this decision within the statutory time limit (30 days). Therefore, the litigation may be considered as concluded.

• On 7 December 2022, the French company SCOOTER CENTER S.à.r.l. notified Piaggio and Piaggio France of a writ of summons before the Tribunal de Commerce of Paris asking the two companies of the Piaggio group to be ordered to pay compensation for alleged damages caused by the (equally alleged) sudden termination of the sales concession agreement in place between Piaggio and the dealer Scooter Center without due notice. These damages were quantified in the court application at €4.15 million (plus legal costs). In the first hearing of 16.02.2023, the Judge set the dates for the proceedings, requesting the parties to consider a settlement and granted a deadline until 12.04.2023 for Piaggio to file its briefs. This deadline was then postponed to 24.05.2023. Piaggio therefore entered a plea and confirmed it wished to attempt settlement; similarly, Scooter centre has also stated that it wishes to proceed in the same way. Therefore, the judge granted the parties until 13.09.2023to conclude the settlement procedure. The conciliator has been appointed to set the date for the first meeting.

The amounts allocated by the Company for the potential risks deriving from the current disputes appear to be consistent with the predictable outcome of the disputes.

With reference to tax disputes involving Piaggio, it should be noted that the dispute concerning the notices of assessment for regional production tax and corporate income tax notified to Piaggio on 22.12.2017, both relating to the 2012 tax period and containing findings on transfer pricing, is pending before the Regional Tax Tribunal of Tuscany. In this regard, it should be noted that the company was successful in the first instance before the Florence Provincial Tax Commission with a ruling filed on 15 January 2020; the Revenue Agency appealed against this decision before the Provincial Tax Commission; while the company appeared in court on 02.12.2020. In a ruling of 13.02.2023, filed on 01.03.2023, the Provincial Tax Commission rejected the appeal filed by the Revenue Agency and confirmed the first instance ruling, which was favourable to the company. The deadlines for a possible appeal to the Court of Cassation by the Tax Agency are still pending.
With reference to PT Piaggio Indonesia, the Company has certain disputes outstanding relating to the 2015, 2017, 2018, 2019 and 2022 tax periods.

With regard to the dispute on Value Added Tax, the company filed an appeal on 4 May 2021 with the Tax Court and the first hearing was held on 22 October 2021. It should be noted that the dispute concerns not only the year 2015, but also the month of December 2014. The Tax Court ruled in favour of the Indonesian company in a judgment issued on 20 December 2022. The Indonesian tax authorities have not challenged this decision.

With respect to the 2017 period, the company filed an appeal with the Tax Court on 08.09.2020 against the transfer pricing and withholding tax notice. The Tax Court expressed an unfavourable opinion regarding the Company, which filed an appeal with the Supreme Court on 13 July 2022.

The total amount currently in question amounts to €0.1 million and where due (i.e. where not offset by the company's past losses) has already been paid in full to the Indonesian tax authorities in accordance with the regulations in force there.

As regards the 2018 tax period, the dispute, relating to transfer pricing, concerns a higher tax of about €0.2 million. On 17.09.2021, the company appealed against filed action against the notice of assessment before the Tax Court and is waiting for the decision.

In relation to the 2019 tax year, the Indonesian tax authorities reiterate the same transfer pricing challenges made in 2018, as well as the tax claim made in previous years in relation to Withholding taxes. The total amount currently under dispute amounts to approximately €0.9 million. The company filed an appeal against the assessment notice on 15.09.2022 before the Tax Court and is waiting for the decision.

In relation to the 2022 tax year, the dispute concerns the non-recognition of the duty exemption originally granted on certain imports of vehicles originating in Vietnam. The total amount currently under dispute amounts to approximately €0.5 million. Against this dispute, the company appealed to the Tax Court, which ruled in June 2023 against the company.

As regards the marine sector (Intermarine S.p.A), it is noted that:

• With reference to the arbitration initiated by the banks of Taiwan, the procedure was concluded with an award in favour of Intermarine. In particular, the Court of Arbitration, in the ruling of the partial award, rejected the claims of the Banks in their entirety; while on 07.06.2023 the Chamber of Arbitration issued the final award which ordered the full reimbursement of the legal costs of the proceedings in favour of Intermarine for a total of €1.9 million. On 29.06.2023, the Banks reimbursed this sum in favour of the company.

• For the disputes in which the company has been summoned to appear in court, with claims for compensation for alleged moral, biological and relational/existential damages due to the illness of former employees, for a total of €1.1 million, the preliminary investigation phases are underway and hearings have been held with the examination of witnesses for each party and in one case an expert witness report has been produced. Given the preliminary stages of the proceedings and the necessary defence actions by the lawyers assisting the company, it is not possible at present to predict the outcome of these proceedings.

Events occurring after 30 June 2023 and operating outlook

Despite the fact that forecasts remain complex due to the critical issues surrounding geopolitical tensions, the Immsi Group will continue to work to meet commitments and pursue margin and productivity targets, thanks to careful and efficient management of its economic and financial structure.

With reference to the tourism sector, the subsidiary Is Molas S.p.A., in particular, will continue activities aimed at marketing and renting the complex built, and at increasing the resort's customers in its new design proposal for accommodation, golf and the Is Molas Beach Club.

With regard to the operating outlook for the industrial sector, in this complex macroeconomic context, Piaggio has confirmed it is continuing to pursue margin and productivity targets in the management of production, logistics and procurement costs and in the management of all international markets in line with the first half of the year, thanks to a portfolio of iconic brands. Productivity improvements will offset the temporary slowdown in Asia, where growth rates of 23% have been consolidated over the past five years.

The markets in India, Europe and the United States remain positive despite the increase in interest rates over the past 12 months.

In view of this, the investments planned for new products in the two-wheeler and commercial vehicle sectors and the consolidation of Piaggio's commitment to ESG issues are confirmed.

With reference to Intermarine, production progress will be made in the next few months on job orders acquired, and commercial activities in all the company's business sectors will continue, seeking favourable business opportunities; management will continue to take all actions to keep costs down, and will carry out all activities necessary to obtain further job orders enabling it to increase its orders portfolio and consequently optimise and increase, where necessary, production capacity over the next few years.

Mantova, 5 September 2023 for the Board of Directors

Chief Executive Officer Michele Colaninno

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Immsi Group

Condensed Interim Financial Statements and Notes

Immsi Group

Condensed Interim Financial Statements

as of 30 June 2023

~ 37 ~

Immsi Group Condensed Interim Financial Statements and Notes

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2023

in thousands of Euros

ASSETS		30 June 2023	31 December 2022

NON-CURRENT ASSETS
Intangible assets Property, plant and equipment	F1 F2	900,847 365,115	897,337 369,668
Investment Property		0	0
Investments	F3	9,343	9,948
Other financial assets	F4	16	16
Tax receivables	F5	6,692	8,831
Deferred tax assets	F6	130,539	145,597
Trade receivables and other receivables	F7	20,219	21,837
TOTAL NON-CURRENT ASSETS		1,432,771	1,453,234

ASSETS HELD FOR DISPOSAL	F8	0	0
CURRENT ASSETS
Trade receivables and other receivables	F7	188,616	112,400
- of which with Related Parties		1,010	1,003
Tax receivables	F5	52,088	46,246
Inventories	F9	488,120	491,093
Other financial assets	F4	5,946	3,770
Cash and cash equivalents	F10	267,484	263,577
TOTAL CURRENT ASSETS		1,002,254	917,086
TOTAL ASSETS		2,435,025	2,370,320


LIABILITIES		30 June 2023	31 December 2022
SHAREHOLDERS' EQUITY
Consolidated Group shareholders' equity		241,146	240,265
Capital and reserves of non-controlling interests		177,349	168,591
TOTAL SHAREHOLDERS' EQUITY	G1	418,495	408,856

NON-CURRENT LIABILITIES
Financial liabilities - of which with Related Parties	G2	576,192 926	595,176 852
Trade payables and other payables	G3	15,730	15,603
Provisions for severance liabilities and similar obligations	G4	27,150	28,123
Other long-term provisions	G5	20,201	18,603
Deferred tax liabilities	G6	8,830	8,800
TOTAL NON-CURRENT LIABILITIES		648,103	666,305

LIABILITIES ON DISCONTINUED OPERATIONS	F9	0	0
CURRENT LIABILITIES
Financial liabilities	G2	463,890	405,443
- of which with Related Parties		402	374
Trade payables	G3	768,905	775,722
- of which with Related Parties		12,252	10,125
Current taxes		28,930	22,491
Other payables	G7
	G3	85,473	73,645
- of which with Related Parties		0	123
Current portion of other long-term provisions	G5	21,229	17,858
TOTAL CURRENT LIABILITIES		1,368,427	1,295,159
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		2,435,025	2,370,320

CONSOLIDATED INCOME STATEMENT AS OF 30 JUNE 2023

in thousands of Euros

		30.06.2023	30.06.2022
Net revenues	H1	1,187,439	1,077,521
- of which with Related Parties		5	0

Costs for materials	H2	752,242	688,035
- of which with Related Parties		15,506	26,120
Costs for services, leases and rentals	H3	165,512	159,979
- of which with Related Parties		395	344
Employee costs	H4	150,210	143,126
Depreciation and impairment costs of plant, property and equipment	H5	33,933	30,587
Impairment of goodwill		0	0
Amortisation and impairment costs of intangible assets with a finite useful life	H6	40,973	37,587
Other operating income	H7	84,502	78,858
- of which with Related Parties		160	232
Net reversals (impairment) of trade and other receivables	H8	(2,262)	(1,976)
Other operating costs	H9	18,304	13,853
- of which with Related Parties		2	0
OPERATING INCOME (EBIT)		108,505	81,236
Income/(loss) from investments	H10	139	(80)
Financial income	H11	16,097	26,981
Borrowing costs	H12	46,637	47,268
- of which with Related Parties		23	22
PROFIT BEFORE TAX		78,104	60,869
Taxes	H13	31,031	26,472
PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS		47,073	34,397
Gain (loss) from assets held for sale or disposal	H14	0	0
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS		47,073	34,397
Earnings for the period attributable to non-controlling interests		27,505	19,674
GROUP PROFIT (LOSS) FOR THE PERIOD	H15	19,568	14,723

EARNINGS PER SHARE

In Euros

From continuing and discontinued operations:	30.06.2023	30.06.2022
Basic	0.057	0.043
Diluted	0.057	0.043


From continuing operations:	30.06.2023	30.06.2022
Basic	0.057	0.043
Diluted	0.057	0.043

Average number of shares: 340,530,000 340,530,000

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS OF 30 JUNE 2023

in thousands of Euros

	30.06.2023	30.06.2022
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS	47,073	34,397
Items that will not be reclassified in the income statement Profit (loss) arising from the fair value measurement of assets and liabilities recognised in the statement of comprehensive income ("FVTOCI")	2,235	(1,252)
Actuarial gains (losses) on defined benefit plans	33	3,549
Total	2,268	2,297
Items that may be reclassified in the income statement Effective portion of profit (losses) from instruments to hedge cash flows Profit (loss) deriving from the translation of financial statements of foreign companies denominated in foreign currency	(5,905) (2,086)	(1,317) (416)
Share of subsidiaries/associates valued with the equity method	(744)	408
Total	(8,735)	(1,325)

Other Consolidated Comprehensive Income (Expense)	(6,467)	972

TOTAL COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD	40,606	35,369
Comprehensive income of minority interests	23,237	20,573
COMPREHENSIVE GROUP PROFIT (LOSS) FOR THE PERIOD	17,369	14,796

The values presented in the table are all stated net of the corresponding fiscal effect.

~ 40 ~

Immsi Group

Condensed Interim Financial Statements and Notes

STATEMENT OF CONSOLIDATED CASH FLOWS AS OF 30 JUNE 2023

in thousands of Euros

		30.06.2023	30.06.2022
Operating activities
Profit before tax		78,104	60,869
Depreciation of property, plant and equipment (including investment property)	H5	33,842	30,587
Amortisation of intangible assets	H6	40,973	37,167
Provisions for risks and for severance indemnity and similar obligations	H4 - H9	16,876	11,971
Write-downs (reversals of fair value measurements)	H7 – H8 – H9	2,300	1,706
Losses / (Gains) on the disposal of property, plant and equipment (including	H7 - H9	(2,187)	(164)
investment property)
Financial income	H11	(1,654)	(825)
Borrowing costs	H12	31,582	19,465
Amortisation of grants	H7	(3,080)	(3,144)
Portion of earnings before taxes of affiliated companies (and other companies	H10	(139)	80
valued using the equity method)
Change in working capital:
(Increase) / Decrease in trade receivables and other receivables	F7	(76,407)	(66,799)
(Increase)/Decrease in inventories	F9	2,973	(98,725)
Increase / (Decrease) in trade and other payables	G3	2,447	148,839
(Increase) / Decrease in contract work in progress	F7	(82)	2,469
Increase/(Decrease) in provisions for risks	G5	(6,704)	(9,427)
Increase / (Decrease) in provisions for severance liabilities and similar	G4	(6,324)	(6,463)
obligations
Other changes		(5,500)	(20,407)
Cash generated from operating activities		107,020	107,199
Interest paid		(26,411)	(16,568)
Taxes paid		(13,389)	(12,586)
Cash flow from operations		67,220	78,045

Investing activities
Acquisition of subsidiaries, net of cash and cash equivalents	F4	(158)	(3,552)
Investment in property, plant and equipment (including investment property)	F2	(25,834)	(28,397)
Sale price, or repayment value, of plant, property and equipment (including	F2	2,483	697
investment property)
Investment in intangible assets	F1	(45,091)	(39,269)
Sale price, or repayment value, of intangible assets	F1	43	24
Purchase of non-consolidated investments	F4	0	(8)
Collected interests		1,640	564
Sale price from assets held for sale or disposal (*)		0	15,535
Public grants collected		466	579
Cash flow from investing activities		(66,451)	(53,827)

Financing activities
Loans received	G2	121,386	60,499
Outflow for repayment of loans	G2	(80,080)	(101,842)
Reimbursement of rights of use	G2	(5,111)	(5,602)
Outflow for dividends paid to Parent company Shareholders	G1 - N	(13,281)	(10,216)
Outflow for dividends paid to non-controlling interests		(17,528)	(11,547)
Cash flow from financing activities		5,386	(68,708)

Increase / (Decrease) in cash and cash equivalents		6,155	(44,490)

Opening balance		263,513	290,361
Exchange differences		(2,184)	5,303
Closing balance		267,484	251,174

*) The amount as of 30 June 2022 corresponds to the receipt by Pietra S.r.l. of the final balance of €20 million from Chorus Life Pietra Ligure S.p.A. for the sale of the shareholding in Pietra Ligure S.r.l. net of the liquidation advance paid by Pietra S.r.l. to the minority shareholder Intesa Sanpaolo S.p.A. of approximately €4.5 million.

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY AS OF 30 JUNE 2023

in thousands of Euros

	Share capital	Reserves and retained earnings (losses)	Earnings for the period	Shareholders' equity attributable to the Group	Capital and reserves of non controlling interests	Shareholders' equity attributable to the Group and non controlling interests
Balances as of 31 December 2021	178,464	41,217	12,267	231,947	158,920	390,867
Allocation of Group earnings to the Legal Reserve				0		0
Allocation of Group earnings to Dividends			(10,216)	(10,216)	(11,547)	(21,763)
Allocation of Group earnings to Retained Earnings/Losses		2,051	(2,051)	0		0
Purchase of treasury shares by Piaggio & C. S.p.A.		(1,791)		(1,791)	(1,761)	(3,552)
Other changes		828		828	7,136	7,964
Overall earnings for the period		73	14,723	14,796	20,573	35,369
Balances as of 30 June 2022	178,464	42,377	14,723	235,564	173,321	408,885

	Share capital	Reserves and retained earnings (losses)	Earnings for the period	Shareholders' equity attributable to the Group	Capital and reserves of non controlling interests	Shareholders' equity attributable to the Group and non controlling interests
Balances as of 31 December 2022	178,464	34,713	27,087	240,265	168,591	408,856
Allocation of Group earnings to the Legal Reserve		1,022	(1,022)	0		0
Allocation of Group earnings to Dividends		0	(13,281)	(13,281)	(17,528)	(30,809)
Allocation of Group earnings to Retained Earnings/Losses		12,784	(12,784)	0		0
Purchase of treasury shares by Piaggio & C. S.p.A.		(80)		(80)	(78)	(158)
Other changes		(3,127)		(3,127)	3,127	0
Overall earnings for the period		(2,199)	19,568	17,369	23,237	40,606
Balances as of 30 June 2023	178,464	43,113	19,568	241,146	177,349	418,495

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 JUNE 2023

Note	Description
A	General aspects
B	Scope of consolidation
C	Consolidation principles
W	Accounting standards and measurement criteria
E	Segment reporting
F	Information on main assets
F1	Intangible assets
F2	Property, plant and equipment
F3	Investments
F4	Other financial assets
F5	Tax receivables
F6	Deferred tax assets
F7	Trade receivables and other receivables
F8	Assets/liabilities related to assets held for disposal
F9	Inventories
F10	Cash and cash equivalents
G	Information on main liabilities
G1	Shareholders' equity
G2	Financial liabilities
G3	Trade payables and other payables
G4	Provisions for severance liabilities and similar obligations
G5	Other long-term provisions
G6	Deferred tax liabilities
G7	Current taxes
H	Information on main Income Statement items
H1	Net revenues
H2	Costs for materials
H3	Costs for services, leases and rentals
H4	Employee costs
H5	Depreciation and impairment costs of plant, property and equipment
H6	Amortisation and impairment costs of intangible assets with a finite useful life
H7	Other operating income
H8	Net reversals (impairment) of trade and other receivables
H9	Other operating costs
H10	Income/(loss) from investments
H11	Financial income
H12	Borrowing costs
H13	Taxes
H14	Gain (loss) from assets held for disposal or sale
H15	Group profit/loss for the period
I	Commitments, risks and guarantees
L	Related Party Transactions
M	Net debt
N	Dividends paid
O	Earnings per share
P	Additional information on financial instruments

- A) - GENERAL ASPECTS

Immsi S.p.A. (the "Company" or the "Parent Company") is a limited company established under Italian law and has registered offices in Mantua - P.zza Vilfredo Pareto, 3 Centro Direzionale Boma. The main activities of the Company and its subsidiaries (the "Immsi Group" or the "Group"), and information on significant events after 30 June 2023 and operating outlook are described in the Half-Yearly Financial Report. As of 30 June 2023, Immsi S.p.A. was directly and indirectly controlled, pursuant to article 93 of the TUF, by Omniaholding S.p.A., a company wholly owned by the Colaninno family, through the subsidiary Omniainvest S.p.A.

The condensed interim financial statements of the Immsi Group include the financial statements of the Parent Company Immsi S.p.A. and the Italian and international companies directly and indirectly controlled by it, approved where required by the relevant corporate functions of the respective companies, suitably reclassified and adjusted where necessary to adapt them to the Group's accounting principles.

The financial statements are expressed in Euro since that is the currency in which most of the Group's transactions take place.

The amounts in the above schedules and in the Notes on the consolidated financial statements are stated in thousands of Euros (if not otherwise indicated).

It should be noted that the Group's business presents significant seasonal variations in sales over the course of the year, especially in the industrial sector and, to a limited extent, in the tourist-hotel sector.

These condensed consolidated interim financial statements are subject to limited review by the independent auditors Deloitte & Touche S.p.A. pursuant to the mandate granted by the Shareholders' Meeting on 14 May 2020 for the period 2021-2029.

COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS

These Condensed Interim Financial Statements have been drafted in compliance with the International Accounting Standards (IAS/IFRS) in force at that date, issued by the International Accounting Standards Board and endorsed by the European Commission, in particular IAS 34 "Interim Financial Reporting", as well as in compliance with the provisions established in Article 9 of Legislative Decree no. 38/2005 (CONSOB Resolution no. 15519 dated 27 July 2006 containing the "Provisions for the presentation of financial statements", CONSOB Resolution no. 15520 dated 27 July 2006 containing the "Changes and additions to the Regulation on Issuers adopted by Resolution no. 11971/99", CONSOB communication no. 6064293 of 28 July 2006 containing the "Corporate reporting required in accordance with Article 114, paragraph 5 of Legislative Decree 58/98").

The financial statements have been prepared on a going concern basis with reference to a future period of 12 months from 30 June 2023. In relation to the forecasts drawn up concerning the financial requirements, deriving mainly from investment activities and the management of net working capital, taking into account the credit lines maturing during the year and the financial commitments that the Company has undertaken to meet in order to support the development of its initiatives, the Directors have taken, and will take in the coming months, actions aimed at finding solutions that will guarantee financial balance, including the renewal of short-term credit lines, also taking into consideration the risk of a possible scenario of uncertainty on the stock markets, constantly monitored by Company Management, with possible consequences on the size of credit lines currently granted to the Company, largely guaranteed by Piaggio shares held by the latter. In this regard, it should be noted that the current share price of the Piaggio stock makes it possible to confirm the guarantees in place

for all related loans. Furthermore, as of 30 June 2023, approximately 18.1 million Piaggio shares remain free of guarantee and can therefore potentially be used to obtain new credit lines.

The preparation of the interim financial statements requires the company Management to make estimates and assumptions that affect, among other things, the reported amounts of revenues, expenses, assets and liabilities recorded and disclosure of contingent assets and liabilities at the date of the end of the period. If in the future such estimates and assumptions, made by management based on the best information available at the date of the consolidated interim financial statements, were to deviate from the actual circumstances, the original estimates and assumptions would be modified as appropriate in the period in which the circumstances occurred.

For a more detailed description of the most significant measurement methods of the Group, reference is made to the section "Accounting standards and measurement criteria – Use of estimates" in the Consolidated Financial Statements of the Immsi Group as of 31 December 2022.

In addition, some evaluative processes, particularly the more complex ones such as the determination of any losses in value of fixed assets ("impairment"), are generally carried out completely only at the time of drawing up the annual financial statements, when all the potentially necessary information is available, saving the cases in which there are indicators that require immediate evaluation of possible losses of value.

In this regard, it should be noted that when preparing this Half-Yearly Financial Report as of 30 June 2023, the Group's management carried out consolidated-level sensitivity analyses and specific calculations on the impairment tests concerning the carrying value of the goodwill recognised. These showed that there was no need to update the impairment test prepared and approved as of 31 December 2022 for any of the CGUs under assessment.

FORM AND CONTENT OF THE CONSOLIDATED FINANCIAL STATEMENTS

The Group has chosen to highlight all changes generated by transactions with non-shareholders within two statements reporting trends of the period, respectively named the "Consolidated Income Statement" and "Consolidated Statement of Comprehensive Income". These Condensed Interim Financial Statements are therefore composed of the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Cash Flow Statement and these Notes to the consolidated financial statements.

With reference to Consob Resolution no. 15519 of 27 July 2006 it is pointed out that, as regards the financial schedules, specific Income statement and Statement of financial position schedules have been inserted with the evidence of significant Related Party transactions.

No significant, non-recurring operations, as defined by Consob Communication DEM/6064293 of 28 July 2006 took place during the first half of 2022 and 2023.

Moreover, there were no significant atypical transactions during the first half of 2023 and of the corresponding period of the previous year, as defined in Consob Communication no. DEM/6037577 of 28 April 2006 and no. DEM/6064293 of 28 July 2006.

Consolidated income statement

The Consolidated income statement is presented with the items classified by nature. The overall Operating Income is shown, which includes all income and cost items, irrespective of their repetition or fact of falling outside normal operations, except for the items of financial operations included under Operating Income and Profit before tax. In addition, the income and cost items arising from assets that are held for disposal or sale, including any capital gains or losses net of the tax element, are recorded in a specific item of the consolidated statement of financial position which precedes profit

~ 45 ~

(loss) for the period including minority interests.

Consolidated Statement of Comprehensive Income

The Consolidated Statement of Comprehensive Income is presented as provided for in IAS 1 revised. It requires income attributable to owners of the parent and to non-controlling interests to be recognised net of the corresponding tax effect. In this respect, it should be noted that on 16 June 2011, the IASB issued an amendment to IAS 1 – Presentation of financial statements to require entities to group all items presented in Other comprehensive income based on whether they are potentially reclassifiable to profit or loss.

Consolidated statement of financial position

The Consolidated statement of financial position is presented in opposite sections with separate indication of assets, liabilities, and shareholders' equity. In turn, assets and liabilities are reported in the Consolidated Financial Statements on the basis of their classification as current and non-current. In addition, assets held for sale and liabilities associated with assets held for sale are recognised in a separate item.

Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows is divided into cash-flow generating areas. The Consolidated Statement of Cash Flows model adopted by the Immsi Group has been prepared using the indirect method. The cash and cash equivalents recorded in the Statement of Cash Flows include the Consolidated Statement of Financial Position balances for this item at the reporting date. Financial flows in foreign currency have been converted at the average exchange rate for the period. Income and costs related to interest, dividends received and income taxes are included in the cash flow generated from operations.

Statement of changes in consolidated shareholders' equity

The Statement of Changes in consolidated Shareholders' equity is presented as required by IAS 1 revised. It includes the total statement of comprehensive income while separately reporting the amounts attributable to owners of the Parent company as well as the quota pertaining to noncontrolling interests, the amounts of operations with shareholders acting in this capacity and potential effects of retrospective application or of the retroactive calculation pursuant to IAS 8. For each item, a reconciliation between the balance at the start and end of the period is presented.

Other information

The following exchange rates were used to translate the financial statements of companies included in the scope of consolidation into Euros:

	Exchange rate as of 30 June 2023	Average exchange rate 1st half of 2023	Exchange rate as of 31 December 2022	Average exchange rate 1st half of 2022
US Dollar	1.0866	1.08066	1.0666	1.09339
Pound Sterling	0.85828	0.876377	0.88693	0.842397
Indian Rupee	89.2065	88.84427	88.1710	83.31790
Singapore Dollars	1.4732	1.44403	1.43	1.49208
Chinese Yuan	7.8983	7.48943	7.3582	7.08226
Croatian Kuna *	N.A.	N.A.	7.5345	7.54145
Japanese Yen	157.16	145.76039	140.66	134.30709
Vietnamese Dong	25,618.00	25,425.00	25,183.00	25,059.33071
Indonesian Rupiah	16,384.54	16,275.09142	16,519.82	15,798.55102
Brazilian Real	5.2788	5.48269	5.6386	5.55648

* Croatia joined the Euro area on 1 January 2023

- B - SCOPE OF CONSOLIDATION

As of 30 June 2023, the Immsi Group structure was that attached at the end of these Notes. The scope of consolidation as of 30 June 2023 had not significantly changed compared to the Consolidated Financial Statements as of 31 December 2022 and 30 June 2022:

the consolidated portion of shareholders' equity of the Piaggio group, which amounted to 50.57% as of 30 June 2023, was equal to 50.43% as of 30 June 2022, and 50.57% as of 31 December 2022. The changes are due to the cancellation of 3,521,595 treasury shares and the buyback of 42,000 treasury shares by the subsidiary Piaggio & C. S.p.A.;
on 14 June 2022, the direct subsidiary Pietra S.r.l. (77.78% owned by Immsi S.p.A. and 22.22% by Intesa Sanpaolo S.p.A.), signed the definitive contract with Chorus Life Pietra Ligure S.p.A. (wholly owned by Polifin S.p.A.) for the sale of the entire equity investment held directly in Pietra Ligure S.r.l..

These changes are limited and did not affect the comparability of the balance sheet and income statement between the two reporting periods.

- C - CONSOLIDATION PRINCIPLES

In preparing these Condensed Interim Financial Statements of the Immsi Group, drawn up, as mentioned, in compliance with IAS 34 – Interim Financial Reporting, the accounting standards used to prepare the Consolidated Financial Statements as of 31 December 2022, to which reference is made for more details, were adopted, save for information in the next section on Accounting standards and measurement criteria.

- D - ACCOUNTING STANDARDS AND MEASUREMENT CRITERIA

New accounting standards, amendments and interpretations adopted from 1 January 2023

• On 18 May 2017, the IASB published IFRS 17 - Insurance Contracts, which is intended to replace IFRS 4 - Insurance Contracts. The standard applies from 1 January 2023 but early

application is permitted, only for entities that apply IFRS 9 - Financial Instruments and IFRS 15 - Revenue from Contracts with Customers.

On 9 December 2021, the IASB published an amendment called "Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information". The amendment is a transition option relating to comparative information about financial assets presented at the date of initial application of IFRS 17. The amendment is intended to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and thus to improve the usefulness of comparative information for readers of financial statements. The amendments apply from 1 January 2023, together with the application of IFRS 17.
On 12 February 2021, the IASB published two amendments entitled "Disclosure of Accounting Policies—Amendments to IAS 1 and IFRS Practice Statement 2" and "Definition of Accounting Estimates—Amendments to IAS 8". The amendments are intended to improve the disclosure on accounting policy so as to provide more useful information to investors and other primary users of financial statements as well as to help companies distinguish changes in accounting estimates from changes in accounting policy. The amendments shall apply from 1 January 2023.
On 7 May 2021, the IASB published an amendment called "Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction". The document clarifies how deferred taxes should be accounted for on certain transactions that may generate assets and liabilities of equal amounts, such as leases and decommissioning obligations. The amendments shall apply from 1 January 2023.

The application of the new amendments did not have a significant impact on values or on the financial statements.

Accounting standards, amendments and interpretations not yet applicable

At the date of these Financial Statements, competent bodies of the European Union had not completed the approval process necessary for the application of the following accounting standards and amendments:

On 23 January 2020, the IASB published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current" and on 31 October 2022 published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". These documents aim to clarify how to classify debts and other short or long term liabilities. The amendments enter into force on 1 January 2024; although earlier application is permitted.
On 22 September 2022, the IASB published an amendment called "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to measure the lease liability arising from a sale and leaseback transaction so as not to recognise an income or loss that relates to the retained right of use. The amendments will apply from 1 January 2024, but early application is permitted.
On 23 May 2023, the IASB published an amendment called "Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules'. The document introduces a temporary exception to the recognition and disclosure requirements for deferred tax assets and liabilities related to the Pillar Two Model Rules and provides for specific disclosure requirements for entities affected by the relevant International Tax Reform. The document provides for the immediate application of the temporary exception, while the disclosure requirements will only be applicable to annual financial statements commencing on or after 1 January 2023, but not to interim financial statements with a closing date prior to 31 December 2023.

• On 25 May 2023, the IASB published an amendment entitled 'Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional disclosures about reverse factoring arrangements that enable users of financial statements to evaluate how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of those arrangements on the entity's exposure to liquidity risk. The amendments will apply from 1 January 2024, but early application is permitted.

The Group will adopt these new standards, amendments and interpretations, based on the application date indicated, and will evaluate potential impact, when the standards, amendments and interpretations are endorsed by the European Union.

~ 49 ~

- E - SEGMENT REPORTING

The information for operating segments presented below reflects the internal reporting system used by management for making strategic decisions, as provided for by IFRS 8, in line with the management and control model used. Information is provided, where available, on the three identified segments: property and holding, industrial and marine.

Information by business areas

Income statement

In thousands of Euros	Property and holding sector	Industrial sector	Marine sector	Immsi Group
Net sales to third parties	1,548	1,172,048	13,843	1,187,439
NET REVENUES	1,548	1,172,048	13,843	1,187,439

OPERATING INCOME (EBIT)	-4,544	117,580	-4,531	108,505
Income/(loss) from investments	0	139	0	139
Financial income	289	15,752	56	16,097
Borrowing costs	8,848	35,308	2,481	46,637
PROFIT BEFORE TAX	-13,103	98,163	-6,956	78,104
Taxes	-727	33,375	-1,617	31,031
PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	-12,376	64,788	-5,339	47,073
Gain (loss) from assets held for sale or disposal	0	0	0	0
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS	-12,376	64,788	-5,339	47,073
Earnings for the period attributable to non-controlling interests	-3,050	32,022	-1,468	27,505
GROUP PROFIT (LOSS) FOR THE PERIOD	-9,326	32,766	-3,871	19,568

Statement of Financial Position

In thousands of Euros	Property and holding sector	Industrial sector	Marine sector	Immsi Group

TOTAL ASSETS	289,154	2,011,914	133,957	2,435,025

TOTAL LIABILITIES	313,324	1,573,537	129,669	2,016,530