Abitare In S p A : Financial Statements 2022_ENG

STILISTI URBANI - MADE IN MILANO

ANNUAL FINANCIAL REPORT AS AT 30 SEPTEMBER 2022

STILISTI URBANI - MADE IN MILANO

STILISTI URBANI

MADE IN MILANO

SUMMARY

1. Management and control bodies
2. Group Structure

1. Letter to Shareholder
2. Highlights

13. This is us

A brief introduction to the company, from its origins to today

14. E-commerce

The first integrated platform e-commerce platform for residential new construction residential real estate

16. …and Homizy

Vision, Mission and Strategy of Homizy.

20. Iconic projects

Abitare In and the search for 'beauty':

• Abitare in Maggiolina
• Milano City Village
• Trilogy Towers
• Palazzo Naviglio
• Olimpia Garden
• Savona 105
• Porta Navilgio Grande
• The Units
• Lambrate Twin Palace
• Palazzo Sintesy
• BalduccioDodici

Report on

Management

as at 30.09.2022

___________________

50. Report on Corpo- rate Governance and Ownership Structures 2022

as at 30.09.2022

112. Consolidated Financial Report

as at 30.09.2022

118. Note to the

Consolidated Financial Report

186. Financial

Statements

al 30.09.2022

192. Notes to the Financial Statements

206. Notes to key items of the Statement

of Financial Position

222. Notes to key items in the Income Statement

AbitareIn S.p.A.

Address

Head Office:

Viale Umbria, 32

Milano

Tel: [phone]

[e-mail]

www.abitareinspa.com

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This document, in PDF format, does not constitute fulfilment of the obligations arising from Directive 2004/109/EC (the "Transpar- ency Directive") and the Delegated Regulation (EU) 2019/815 (the "ESEF Regulation" - European Single Electronic Format) for which a special XHTML format was developed.

Management and control bodies

Board of Directors

Luigi Francesco Gozzini	Chairman and Chief Executive Officer
Marco Claudio Grillo	Chief Executive Officer
Mario Benito Mazzoleni	Independent Board member
Giuseppe Carlo Vegas	Independent Board member
Nicla Picchi	Independent Board member
Eleonora Reni	Board member

Board of Statutory Auditors

Ivano Passoni	Chairman
Marco Dorizzi	Standing statutory auditor
Matteo Ceravolo	Standing statutory auditor
Fanny Butera	Substitute statutory auditor
Mariateresa Giangreco	Substitute statutory auditor
Auditing firm	BDO Italia S.p.A.
Manager in charge of preparing	Cristiano Contini
the accounting documents

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Group structure as at 30 september 2022

Abitare in Maggiolina S.r.l.

Milano City Village S.r.l.

Trilogy Towers S.r.l.

Palazzo Naviglio S.r.l.

Savona 105 S.r.l.

Porta Naviglio Grande S.r.l.

TheUnits S.r.l.

Lambrate Twin Palace S.r.l.

Abitare In Development 5 S.r.l.

MyCity S.r.l.

Homizy S.p.A.

Abitare In Development 3 S.r.l., Abitare In Development 4 S.r.l.,

Abitare In Development 6 S.r.l, Abitare In Development 7 S.r.l. ,

Milano Progetti S.r.l., Mivivi S.r.l., Smartcity S.r.l., City Zeden

S.r.l., Volaplana S.r.l., Deametra S.r.l., Immaginare S.r.l., Creare

S.r.l., Hommi S.r.l., Housenow S.r.l., Accursio S.r.l., Citynow S.r.l.,

Ziro S.r.l.

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Disclaimer

These yearly financial statements, and in particular the sections entitled "Outlook" and "Main risks and uncertainties to which the Abitare In Group is exposed", contain forward-looking statements. These statements are based on the Group's cur-rent expectations and projections of future events and, by their nature, are subject to an intrinsic component of risk and uncer-tainty. They refer to events and depend on circumstances that may, or may not, happen or occur in the future. Actual results may differ from those contained in these statements due to a variety of factors, such as volatility in capital and financial mar-kets, changes in macroeconomic conditions and economic growth and other changes in business conditions, changes in legisla-tion and on the institutional scenario and many other factors, including possible developments in the Covid-19 pandemic, most of which are outside the control of the Group.

Report on the management of group AbitareIn

The AbitareIn Group specialises in implementing urban regeneration and redevelopment residential projects involving the purchase of disused or abandoned properties, their demolition and the construc-tion of new residential complexes (both phases that are entirely outsourced through tender contracts) and, finally, their marketing. The Group mainly addresses families who buy a home to live in, focusing its development activities, in particular, on the semi-central and semi-peripheral areas of the city of Mi-lan, whose selection

• the result of careful research within a portfolio of opportunities outlined by an Is-suer's internal team - is based on the socio-economic fabric, demographics and the supply and demand relationship.

Starting at the end of 2019, the Group launched the project called "Homizy". Homizy nowadays is an innovative SME, 70.7% owned by the parent company Abitare In S.p.A., dedicated to the development of a new strategic line of business, namely the development and rental of residential properties through so- called co-living solutions, listed on the Euronext Growth Milan market, in the Professional segment.

In particular, Homizy aims to offer young people, aged between 20 and 35, who relocate from their places of origin to a different city to pursue their career path or who want to fly the nest to become more inde- pendent, a living solution that guarantees efficiency in management and maintenance, innova-tive services and spaces for socialising.

Pursuant to IFRS 8, no information is provided in relation to operating segments as this is not deemed to be material.

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Letter to Shareholders

Luigi Francesco Gozzini

Presidente

Cari azionisti,

In un contesto macro-econmico ancora caratterizzato da incertezze e complessità, l'esercizio 2022 della no- stra Società si chiude con risultati in linea con le aspet- tative, a valle di 12 mesi in cui abbiamo ulteriormente rafforzato la nostra posizione sul mercato milanese e posto le basi per continuare nel nostro percorso di cre- scita.

Siamo molto lieti di confermare, come prima cosa, la conclusione dei lavori su due dei nostri progetti, Milano City Village e Palazzo Naviglio, e l'avvio dei rogiti per la consegna definitiva ai nostri clienti. Con l'aggiunta della fine dei lavori di Trilogy Towers, prevista per l'ini- zio del 2023, nei prossimioltre 300 famiglie entreranno nella loro nuova casa, che abbiamo progettato e realiz- zato con cura e attenzione per soddisfare le esigenze di ciascuno di loro.

Nel corso dell'esercizio abbiamo inoltre proseguito con la commercializzazione di altri nostri progetti (ad oggi sono 12 i progetti commercializzati dalla nascita di Abi- tareIn), in un momento di mercato che si conferma molto positivo. Difatti, non solo la casa continua a rive- stire un ruolo centrale nelle priorità delle famiglie, ma la nostra Città, Milano, conferma la sua dinamicità unica, con volumi che si attesteranno, secondo le pre- visioni, a circa 30.000 compravendite alla fine del 2022.

Nel mese di September abbiamo portato a termine un'altra rilevante operazione, ovvero la cessione dell'operazione di via Cadolini Ex-Plasmon a un prima- rio operatore del mercato, Supernova, per il corrispet- tivo di 72 milioni di euro.

Marco Claudio Grillo

Amministratore Delegato

Riteniamo che la conclusione di questa operazione, ol- tre ad avere un importante ritorno di tipo economico e finanziario, rappresenti una dimostrazione concreta del valore della Società, evidenziando, in maniera inequi- vocabile, la nostra capacità di operare positivamente sul tessuto urbano, recuperando siti in stato di abban- dono e trasformandoli in progetti che possono essere valorizzati con successo nelle diverse fasi di sviluppo.

Siamo inoltre molto orgogliosi di un altro importante risultato raggiunto nel corso dell'anno: nel mese di ot- tobre, la Società si è classificata per il secondo anno di seguito tra le prime 100 aziende italiane nell'edizione 2022 del Sustainability Award, il prestigioso premio as- segnato da Kon Group e Credit Suisse, con la collabo- razione scientifico istituzionale di Altis - Alta Scuola di Formazione dell'Università Cattolica del Sacro Cuore e la collaborazione tecnica di RepRisk.

Guardando al futuro, oltre a rimanere sempre concen- trati sul monitoraggio del contesto macroeconomico e sui suoi sviluppi, il nostro obiettivo rimane quello di proseguire nel nostro percorso di crescita continuativa e sostenibile, mantenendo un impegno concreto e di lungo termine in ambito ESG e consolidando la nostra posizione di leadership nel mercato residenziale mila- nese, offrendo una living experience sempre più com- pleta e sostenibile, oltre che con la realizzazione di nuovi progetti residenziali destinati alla vendita, anche con lo sviluppo del progetto di co-living Homizy

Luigi & Marco

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Highlights

Statement of financial position highlights

at 30.09.2022

305 M €	121 M €	40%
Value of inventory	Loan	Loan to Cost

Pipelines under development (as at the date of approval of this

report)

As of today's date, the Group's development pipeline consists, net of the projects already completed and delivered, of 20 areas, for about 247,000 sqm, corresponding to about 2,680 type appartments1, located in various semi-central and semi-peripheral areas of the City of Milan.

Key non-financial indicators

at 13.12.2022

Development Pipeline

247.000 SQM 3-4

Net saleable area

2.6801-5

Apartments

Order book

7301

Apartments

320 M €

Total value

Construction site progress

4141

Apartments delivered

5771

Apartments under construction

580 €/M2

Net saleable area purchase cost

20

Projects

5712

Preliminary contracts signed

98 M €

Advances from contracted customers

133 M €

Units delivered (value)

252 M €

It should be noted that the pipeline size figures are considered net of the Via Cadolini (ex-Plasmon) devel- opment, which is the subject of a preliminary sale agreement for the consideration of Euro 72 million. Abi- tareIn, prior to the sale, carried out significant development activities both in terms of urban planning and environmental remediation.

Of the flats in the pipeline, to date 730 type appartments1 have been sold (on a preliminary basis), for a countervalue of Euro 320 mln, with contracted advances (guaranteed by a surety policy) amounting to Euro 98 mln, and 577 flats are currently under construction1.

Units delivered

To date, the Group has delivered 414 appartments1 (not included in the pipeline data) divided into the three projects Abitare In Poste, Abitare In Maggiolina and Olimpia Garden, for a value of Euro 133.2 mln.

The Residential in Milan

Over the past year, the Milanese residential market has continued to show strong interest, with the current potential inflationary trend providing a further boost. The first half of 2022 saw the volume of transactions register +17.5% compared to the first half of 2021, bringing to 30,000 the number of transactions expected at the end of this year. In terms of prices, the figures are also strongly positive: +8.3% year-on-year in the city, with new sales up 16.9%. In addition, the 'scarcity' effect on the product continues, in the face of very strong demand, with a consequent increase in sales prices.

Milan is also confirmed as one of the most interesting locations globally, as confirmed by the latest Global Real Estate Bubble Index released by UBS, according to which Milan represents one of the most interesting markets in which to invest.

• No. of appartments considering an average size of 92 sqm for marketing in free building and 82 sqm for social housing. The number of appartments actually realised and of contracts signed, without prejudice to the overall size, may vary depending on the customisation of the size of the units.
  2 It may differ from the no. of appartments depending on the actual size of the appartments sold. In recent transactions AbitareIn has seen a significant and progressive increase in the average size of appartments sold.
  3 This includes 12,800 sqm of commercial space equal to 140 model appartments on which development in the co living formula through the subsidiary Homizy S.p.A. is being evaluated.
  4 Of which 26,000 sqm commercial of social housing.
  5 Of which 317 appartments in of social housing.
  6 Construction site that can be launched in 12 months.

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• No. of appartments assuming an average size of 92 sqm for the marketing of free building and 82 sqm for ERS. The number of flats actually built and of contracts signed, without prejudice to the overall square footage, may vary depending on the customisation of the cut of the units.

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