As at September 30, 2018

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1 PRESS RELEASE 30 NOVEMBER 2018 Italeaf: Interim report as at 30 September 2018 The Board of Directors approved the results as at 30 September NAV equal to Euro 17.4 million. Ebitda of Euro 0.84 million. Net result equal to Euro 0.1 million Revenues amounted to Euro 2.1 million (Euro 16.4 million in the consolidated financial statements). EBITDA amounted to Euro 0.83 million (Euro 1.2 million in the consolidated financial statements) EBIT amounted to Euro 0.5 million (Euro 2.5 million in the consolidated financial statements). The EBT amounts to Euro 0.5 million (Euro 2.5 million in the consolidated financial statements) Net result of Euro 0.1 million (Euro 4.5 million in the consolidated financial statements) Shareholders' equity of Euro 27.7 million (Euro 24 million in the consolidated financial statements) NFP of Euro 17.6 million (Euro 77.5 million in the consolidated financial statements) NAV equal to approximately Euro 17.4 million; NAV per share Euro 1.01 The Board of Directors of Italeaf, holding company and first Italian company builder, active in the cleantech and smart innovation sectors, listed on Nasdaq First North, approved today the Interim report as at 30 September Financial highlights* in Euro As at September 30, 2018 As at September 30, 2017 Change % Revenues from sales and services 2,075,617 2,654, % EBITDA 830, , % EBIT 468, ,441 n.a. EBT -130, , % Net profit/(loss) -114, , % As at December 31, 2017 Shareholders equity 27,737,869 27,803, % Total net financial debt 17,577,517 16,878, % *Separated Interim Report prepared in accordance with accounting principles ITALIAN GAAP Italeaf's NAV was Euro 17.4 million as at 30 September 2018 (-27.8%; Euro 24.1 million as at 31 December 2017); Nav per share Euro The full version of the Interim Report as at 30 September 2018 will be published in English on the Company's website and published in West Corporation InPublic Release Publishing. This press release is also available on the Company website:

2 Italeaf SpA is obliged to make public this information pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at CET on 30 November Certified Adviser Mangold Fondkommission AB, +46 (0) , is the Certified Adviser of Italeaf SpA on Nasdaq First North. For further information please contact: Claudio Borgna CFO Italeaf S.p.A. Italeaf SpA, established in December 2010, is a holding company and a business accelerator for companies and startups in the areas of innovation and cleantech. Italeaf operates as a company builder, promoting the creation and development of industrial startups in the fields of cleantech, smart energy and technological innovation. Italeaf has headquarters and plants in Italy at Nera Montoro (Narni), Terni, Milano and Lecce; has international offices in London and Hong Kong. The company controls the smart energy company TerniEnergia, listed on the MTA of the Italian Stock Exchange, Skyrobotic, active in the business development and manufacture of civil and commercial drones in mini and micro classes for the professional market, Numanova, operating in the field of innovative metallurgy and additive manufacturing, and Italeaf RE, a real estate company. Italeaf holds, among others, a minority stake in Vitruviano LAB, a research center active in the R&D sector for special materials, green chemistry, digital transformation and cleantech.

3 e CONSOLIDATE FINANCIAL REPORT AS AT SEPTEMBER 30, 2018 ITALEAF GROUP 1

4 Italeaf in brief Vision We turn technological start-ups into successful global companies, through a company builder business model. Business concept Italeaf selects or creates new initiatives in cleantech and innovative industrial sectors. We offer to technological start-ups and innovative companies an integrated approach that puts together services, mentoring, expertise, instruments, and facilities, and namely, everything aimed transforming business ideas into real business. We provide initial equity and corporate assistance to launch our start-ups, making it possible for them to become sizeable businesses generating revenues, sharing profits, while operating within acceptable risk parameters. CORPORATE DETAILS Italeaf SPA Registered Office: Strada dello Stabilimento 1, Narni (TR) Authorised, issued and paid-up share capital: Euro 17,444,000 Terni Register of Companies: n BRANCHED AND OFFICES Narni Strada dello Stabilimento, 1 Milan Corso Magenta, 85 Terni Via Casale, 4 London 78/79 New Bond Street, United Kingdom Hong Kong Unit 905-6, 9th Floor, Fook Yip Building Kwai Fung Crescent, Kwai Chung - N.T. Hong Kong S.A.R. Objective The Company's investment policy is to generate returns, in the form of both capital appreciation and income to shareholders, through investing in a portfolio of businesses. While not limited geographically, the Company, in view of the background and experience of its management, is focused on investing the majority of capital in businesses operating in Europe, with a particular emphasis on Italy. Investments outside Europe are considered where the board believes the opportunities are particularly attractive. The Company is interested in investing in businesses with underlying themes of strategic market position and strong growth. Building net asset value The net asset value amounted to Euro 17.4 million at the end of September Dividend policy Our dividend policy is to distribute a large percentage of the dividends received from the subsidiaries, as well as to provide a return on other net assets in line with returns achieved in the equity market. BOARD OF DIRECTORS Chairman Stefano Neri Managing directors Monica Federici Indipendent directors Domenico De Marinis Board of Statutory Auditors Fausto Sciamanna (Chairman) Andrea Bellucci Caterina Brescia Independent Auditors EY SPA 2

5 CONTENTS MANAGEMENT REPORT... 4 BUSINESS AND MISSION... 4 NET ASSET VALUE AND STATEMENTS FOR THE PARENT COMPANY... 5 OUR INVESTMENTS... 9 TERNIENERGIA... 9 SKYROBOTIC NUMANOVA GROUP S ORGANIZATION KEY EVENTS FOR FINANCIAL STATEMENTS STATEMENT OF CONSOLIDATED FINANCIAL POSITION CONSOLIDATED INCOME STATEMENT CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONSOLIDATED STATEMENT OF CASH FLOWS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

6 MANAGEMENT REPORT BUSINESS AND MISSION Italeaf is an Italian investment company and company builder that aims to transform technological start-ups into global companies. Italeaf identifies industrial initiatives within the cleantech sector and within the sphere of innovative industrial production, where the Company can leverage its strong expertise and track record. In supporting new start-ups, Italeaf aims to replicate the success of TerniEnergia, a company established in 2005 and listed on the Italian Stock Exchange in Since the IPO after its start-up, TerniEnergia has become a leading global company in the field of renewable energy, waste management, and energy efficiency, with a market cap of over Euro 80 million. With the creation of subsidiaries in London and Hong Kong, Italeaf intends to give an international flavor to its business, broadening the spectrum of the activity of scouting and looking for innovative companies. The company has invested in three new industrial initiatives: GreenLed Industry, operating in innovative industrial lighting production; Skyrobotic, active in the production of commercial and civil drones; and WiSave, a producer of smart devices for the remote control of energy consumption. Italeaf strives to develop an ideal environment to foster creation and growth of new companies, through three lines of business: 1. Company Builder: we co-found start-ups with direct investments, a proven business model and a strong focus on execution. Italeaf concentrates its activities on clearly defined market segments, such as the cleantech sector. We provide innovative incubation services with seed investments to create a breeding ground for a highly skilled company network. 2. Holding: we manage our investment portfolio and we provide centralized service activities to our Group companies (finance, treasury, IT, legal, corporate communication and logistics for administrative, managerial and commercial support) to facilitate value creation and growth for the portfolio companies. 3. Real Estate: we use our strategic infrastructure, logistics and business eco-system to support the companies industrial needs. In particular, we are creating (with the consultative input of the Politecnico di Milano University) an eco industrial park in our facilities in the center of Italy. We own and manage an industrial area with a total area of about 24 hectares and co-working space of 1,800 square meters. Each of these activities is functional to the others; our approach is something completely new compared to traditional incubators and other venture capital firms. The track record gained over the years (with the listing of TerniEnergia and TerniGreen on the Italian Stock Exchange and the constant value creation for shareholders) is proof of our passion and expertise. The Company capitalization and its majority stake in TerniEnergia, listed on the Borsa Italiana's STAR segment (which entails rigorous requirements), are factors to mitigate the risk that is normally associated with start-up businesses.value creation through industrial innovation is what we have achieved in recent years. Now, we intend to offer our vision to the market with a strong international expansion project. The listing of Italeaf on NASDAQ OMX First North is therefore an important starting point for innovatively responding to the new challenges of global change. 4

7 NET ASSET VALUE AND STATEMENTS FOR THE PARENT COMPANY NET ASSET VALUE At the end of September 2018, net asset value amounted to Euro 19.1 million. NAV ITALEAF (Euro/000) Notes Tangible Assets: REAL ESTATE PROPERTY (Nera Montoro & Maratta) 19,092 Book Value Controlling stake in: 42.19% stake in TerniEnergia* 8, % stake in Skyrobotic 2,058 Book value Calculated on the share price as at September 30, 2018 (Euro 0.41) 85,58% stake in Numanova 3,125 Based on the price of latest funding round Minority stake**: 2,597 Book value GROSS ASSET VALUE 35,018 Net Financial Indebtedness (17,578) As at September 30, 2018 NET ASSET VALUE AS SEPTEMBER 30, ,440 NAV PER SHARE AS SEPTEMBER 30, 2018 ( ) 1.02 * 45,44% of voting rights ** 50% stake in Opera Power (JV), the value the business unit of industrial water management in Italeaf RE and 10.67% stake in Vitruviano Lab The NAV of Italeaf primarily consists of the investments in TerniEnergia and in the start-stup companies (Skyrobotic and Numanova). NAV at September 30, 2018 amounted to Euro 17,440 million. The value of the equity investment in TerniEnergia corresponds to the share value as at September 30, 2018, considering that the company is listed on Borsa Italiana. At the end of September 2018, Italeaf owned 19,867,102 ordinary shares, corresponding to 42.19% of the share capital and the 45.44% of the voting rights. The balance of real estate property includes Euro 2.5 million representing 100% of the share capital of the subsidiary Italeaf RE Srl, which was established from the partial, non-proportional spin-off of Greenled Industry SpA. The equity of the new company consists of the value of the industrial facilities, located in the Nera Montoro facility, previously owned by Greenled Industry SpA. The value of Numanova was calculated on the last share capital increase value in which new shareholders subscribed newly issued shares. 5

8 STATEMENTS FOR THE ITALEAF PARENT COMPANY The separate financial statements of the parent company Italeaf were prepared according to the rules applicable to an Italian company listed on a multi-lateral trading platform (MTF), such as NASDAQ OMX First North (First North). Hence, while the Italeaf consolidated financial statements were prepared according to international accounting standards, considering that said financial statements include the consolidated data of TerniEnergia Group, listed on the MTA segment of Borsa Italiana, and therefore, prepared according to IFRS. The Italeaf separate financial statements were prepared in accordance with Italian accounting standards. The table below shows the data of the separate financial statements prepared according to Italian accounting standards as at September 30, 2018: in As at September, 30 As at December, 31 Change Change % Intangible assets 155, ,547 (235,730) (60.2)% Tangible assets 21,315,968 21,480,860 (164,892) (0.8)% Financial assets and other att. 28,308,867 28,177, , % Fixed Assets 49,780,652 50,049,931 (269,279) (0.5)% Inventories n.a. Trade receivables 348, ,123 (168,932) (32.7)% other activities 3,907,636 2,756,438 1,151, % Trade payables (1,801,073) (1,751,271) (49,802) 2.8% Other liabilities (1,960,191) (1,930,647) (29,544) 1.5% Net working capital 494,563 (408,357) 902,920 n.a. Provisions and other non-commercial (4,959,829) (4,959,332) (497) 0.0% Net Invested Capital 45,315,386 44,682, , % Shareholders Equity 27,737,869 27,803,967 (66,098) n.a. Net current financial position 17,577,517 16,878, , % Non-current net financial position n.a. Total net financial position 17,577,517 16,878, ,242 n.a. Net Invested Capital 45,315,386 44,682, , % Tangible assets represents the value of the industrial site at Nera Montoro, the incubator at Maratta, as well as a some industrial plants present at the Nera Montoro site. Financial assets include the book value of the controlling interests in TerniEnergia (Euro million), in Skyrobotic (Euro 2.06 million), in Numanova (Euro 2.8 million) and Italeaf RE (Euro 4.56 million); the account also includes the value of a Joint Venture called Opera Power Srl which holds of a PV plant of of about 1 MWp and the value of 10.67% in Vitruviano Lab Srl. The Net Financial Position amounted to Euro million. The current financial position includes a short-term credit line, amounting to Euro 4.0 million, collateralized by the pledge of TerniEnergia shares; the rest of the debt relates mainly to mid term loans. 6

9 in The first nine months of 2018 The first nine months of 2017 Change Change % Net revenues from sales and services 2,075,617 2,654,574 (578,957) (21.8)% Production costs (1,049,827) (1,537,325) 487,498 (31.7)% Added value 1,025,790 1,117,249 (91,459) (8.2)% Personnel costs (195,043) (524,768) 329,725 (62.8)% EBITDA 830, , , % Amortization, depreciation, provisions and write-downs (362,312) (459,040) 96,728 (21.1)% EBIT 468, , ,994 n.a Financial income and charges (598,604) (489,107) (109,497) 22.4% Pre-tax result (130,169) (355,666) 225,497 (63.4)% Income taxes (15,611) (89,748) 74,137 (82.6)% Net profit for the period (114,558) (265,918) 151,360 (56.9)% Revenues refer to service contracts between Italeaf and subsidiaries for availability of offices and industrial buildings, accounting and tax services, and so forth. The revenues also includes the remuneration on the guarantees given by Italeaf to TerniEnergia (Euro 0.9 million) in favor of certain banks that have financed TerniEnergia, taking account that it is an operating activity for the company. The costs relate mainly to personnel and the operation of the industrial site at Nera Montoro. Financial income and expenses includes: cost of financial debt (Euro 0.6 million). 7

10 STATEMENTS FOR THE ITALEAF GROUP in Euro As at September 30, As at December 31, Change Change % Intangible assets 33,581,299 35,488,340 (1,907,041) (5.4)% Tangible assets 27,048,484 82,875,372 (55,826,889) (67.4)% Financial assets and other att. 23,144,511 34,720,710 (11,576,200) (33.3)% Fixed Assets 83,774, ,084,423 (69,310,129) (45.3)% Inventories 10,594,056 13,941,717 (3,347,660) (24.0)% Trade receivables 12,585,920 35,965,999 (23,380,079) (65.0)% other activities 5,447,249 16,523,013 (11,075,764) (67.0)% Trade payables (27,386,642) (54,247,907) 26,861,265 (49.5)% Other liabilities (25,160,584) (21,217,665) (3,942,920) 18.6% Net working capital (23,920,001) (9,034,843) (14,885,158) n.a Provisions and other non-commercial (18,040,715) (25,369,298) 7,328,583 (28.9)% Net Invested Capital 41,813, ,680,282 (76,866,704) (64.8)% Shareholders Equity 23,972,954 25,942,791 (1,969,837) (7.6)% Net current financial position 78,073,179 68,680,203 9,392, % Non-current net financial position 1,982,233 38,498,834 (36,516,601) (94.9)% Total net financial position 80,055, ,179,036 (27,123,624) (25.3)% (Assets) Net liabilities held for sale (62,214,788) (14,441,545) (47,773,244) n.a Net Invested Capital 41,813, ,680,282 (76,866,704) (64.8)% in Euro As at September 30, 2018 As at September 30, 2017 Change Change % Net revenues from sales and services 16,360,149 20,410,986 (4,050,837) (19.8)% Production costs (4,819,709) (8,113,500) 3,293,791 (40.6)% Added value 11,540,441 12,297,486 (757,045) (6.2)% Personnel costs (10,301,342) (12,276,508) 1,975,166 (16.1)% EBITDA 1,239,099 20,978 1,218,120 n.a Amortization, depreciation, provisions and write-downs (3,763,688) (4,461,141) 697,453 (15.6)% EBIT (2,524,589) (4,440,162) 1,915,573 (43.1)% Financial income and charges (2,901,783) (2,848,403) (53,380) 1.9% Portions of results attributable to the JV (34,802) (103,098) 68,296 n.a. EBT (5,461,174) (7,391,664) 1,930,489 n.a. Income taxes 1,035,129 3,397,758 (2,362,629) (69.5)% Ongoing activities result (4,426,045) (3,993,905) (432,140) 10.8% Asset for sales net result (40,845) (4,241,049) 4,200,204 (99.0)% Net profit for the period (4,466,890) (8,234,954) 3,768,063 (45.8)% 8

11 OUR INVESTMENTS TERNIENERGIA OVERVIEW Italeaf has a 42.19% shareholding in TerniEnergia and 45.44% of the voting rights. TerniEnergia established in September 2005 and part of the Italeaf Group, is the first Italian global technological enabler, committed to bringing energy solutions and efficient recovery of integrated and sustainable resources to the world. Organized into two strategic business lines (Assets and Smart solutions and services), with about 300 employees and a geographical presence worldwide, with operative and commercial offices, TerniEnergia develops innovative solutions, products and services based on digital and industrial technologies for the energy supply chain, grids, smart mobility, industrial automation and the recovery of marginal resources. TerniEnergia, also through its subsidiaries (Softeco Sismat, Greenled Industry, GreenAsm, GreenAsm, Purify, Wisave, Ant Energy), pursues the objectives of increasing energy production from renewable sources, saving energy and reducing emissions and actively participates in the energy revolution of distributed power generation and smart grids, with innovative digital solutions. TerniEnergia is the ideal partner for large utilities, distribution operators and network operators, energy producers, public administrations, industrial customers and investors who intend to realize large projects for the production of renewable energy, modern systems and plants with high energy efficiency, solutions for the management and maintenance of infrastructure and electrical installations. TerniEnergia is completing its transformation from a leader in the international photovoltaic market into a smart energy company and technological enabler for the sustainable use of resources through a complete commercial offer of solutions, the development and supply of digital technologies and the creation of "intelligent" services and solutions aimed at public and private customers in emerging sectors. TerniEnergia is listed on the MTA of Borsa Italiana. 9

12 KEY FIGURES FOR THE TERNIENERGIA GROUP AS AT SEPTEMBER 30, 2018 As at September,30 As at December,31 Change Change % Intangible assets 30,278,045 32,092,177 (1,814,132) (5.7)% Property, plant and equipment 1,677,898 59,590,962 (57,913,064) (97.2)% Financial fixed assets and other intangible assets 20,911,346 32,487,736 (11,576,390) (35.6)% Fixed Assets 52,867, ,170,875 (71,303,586) (57.4)% Inventories 10,473,354 13,843,569 (3,370,215) (24.3)% Trade receivables 14,893,772 35,289,654 (20,395,882) (57.8)% Other assets 4,880,746 16,076,441 (11,195,695) (69.6)% Trade payables (28,296,739) (54,098,698) 25,801,959 (47.7)% Other liabilities (23,887,126) (19,524,624) (4,362,502) 22.3% Net working capital (21,935,993) (8,413,659) (13,522,335) n.a. 0.0% Provisions and other non-trade liabilities (13,961,687) (19,374,854) 5,413,166 (27.9)% Net Invested Capital 16,969,609 96,382,362 (79,412,754) (82.4)% Shareholders Equity 18,713,230 21,034,123 (2,320,893) (11.0)% Current net financial position 59,854,415 64,654,119 (4,799,704) (7.4)% Non-current net financial position 25,135,665 (25,135,665) (100.0)% Total net financial position 59,854,415 89,789,784 (29,935,369) (33.3)% (Assets) Net liabilities held for sale (61,598,036) (14,441,545) (47,156,491) n.a. Net Invested Capital 16,969,609 96,382,362 (79,412,754) (82.4)% As at September, 30 As at September, 30 Change Change % Net revenues from sales and services 15,684,547 19,635,690 (3,951,143) (20.1)% Production costs (4,386,315) (8,008,138) 3,621,824 (45.2)% Added value 11,298,233 11,627,551 (329,319) (2.8)% Personnel costs (9,931,137) (11,584,232) 1,653,095 (14.3)% EBITDA 1,367,096 43,319 1,323,777 n.a. Amortization, depreciation, provisions and write-downs (3,119,245) (3,915,089) 795,844 (20.3)% EBIT (1,752,149) (3,871,770) 2,119,620 (54.7)% Financial income and charges (3,147,087) (3,224,366) 77,278 (2.4)% Portions of results attributable to the JV (34,802) (103,098) 68,296 (66.2)% Pre-tax result (4,934,039) (7,199,234) 2,265,195 (31.5)% Income taxes 941,870 3,304,462 (2,362,592) (71.5)% Result of ongoing activities (3,992,169) (3,894,771) (97,398) 2.5% Net result from assets held for sale (40,845) (4,241,049) 4,200,204 (99.0)% Net profit for the period (4,033,014) (8,135,820) 4,102,806 (50.4)% 10

13 SKYROBOTIC OVERVIEW As at September , Italeaf owns 68.61% of the share capital of Skyrobotic. The company was established on 20 December 2013 as a limited liability company, between the shareholders of Siralab Robotics S.r.l. and Italeaf S.p.A. The company combines the know-how and decades of experience in the sector of Siralab Robotics S.r.l., an advanced technology company, and the track record, operating experience and financial capacity of Italeaf S.p.A., a leading group in the cleantech and innovative industrial sectors. Skyrobotic is active in the planning, development and industrial production of systems for UAV and UAS remote piloting, becoming, in just more than one year from its creation, the reference Italian company for the remote piloting systems sector. From an industrial perspective, the company has recognised turnover of Euro 535 thousand through the sale of 16 remote piloting systems to leading operators in the sector, continuing at the same time to develop and engineer the product. The company achieved EN9100:2009 certification (equivalent in technical terms to AS 9100C and JISQ 9100:2009) for the facility at Nera Montoro, Italy, in the field of planning, production, and post-sales assistance of remote aircraft piloting systems. This is the result of a two-year investment in the processes of preparation and auditing performed by the business, which qualifies Skyrobotic as the first independent company to produce drones under 25 kg in Italy to be certified based on the strict criteria of European regulations that form a system for ensuring quality in the aeronautics sector. It is similar to AS 9100 in America and JISQ 9100 in Asia. The EN ISO 9100 qualification is specific to the aeronautics and space industry and fully encapsulates ISO 9001:2008 (certification obtained by Skyrobotic at the same time), but includes 30% more requirements and measurements that include documented control systems for processes used in developing, manufacturing and selling the products, and is applicable to manufacturers of aircraft and, increasingly, to their suppliers. On 4 March 2016, the Skyrobotic shareholders meeting unanimously resolved to carry out a share capital increase offered in option to current shareholders for Euro 250 thousand, in order to support the growth of business activities. Once the share capital increase is subscribed, Skyrobotic will have a share capital of Euro 2,750,000. The same shareholders meeting appointed a new Board of Directors, composed of Stefano Neri (Chairman), Spartaco Franconi (Deputy Chairman and CEO) and Roberto Cecchin (Director). On 30 December 2016, the Skyrobotic shareholders meeting unanimously resolved to carry out another share capital increase offered in option to current shareholders for Euro 250 thousand, in order to support the growth of business activities. Once the share capital increase is subscribed, Skyrobotic will have a share capital of Euro 3,000,

14 NUMANOVA OVERVIEW As of the drafting date of this report, Italeaf had an equity investment of 85,58% in Numanova. Numanova is an Italian company active in the production of high quality metal powders obtained from ferrous metal and non ferrous alloys to be used in Additive Manufacturing (3D printing), Metal Injection Molding (MIM), Hot Isostatic Pressing (HIP), PTA, laser cladding, sintering, for the most advanced industrial sectors such as aerospace, energy, automotive, mechanics, naval, biomedical, and luxury. The company will be equipped with the most advanced production technology of metal powders by atomization gas, vacuum induction casting ceramic-free. Plasma technologies and Electron Beam Melting processes will be also introduced as part of a fully integrated Value Chain based in Italy. Since 2010 the AM industry has been fastly proceeding well beyond its prototyping past, rapidly becoming a costeffective industrial production reality and a reference for next-generation mass customized applications. Total Additive Manufacturing sized 5.5 billion EURO in 2016, of which around 15-20% is represented by metal additive manufacturing. CAGR in the period 2013 to 2016 was in excess of 30%.Following this trend, major market observers agree to estimate a 2021 market around 25.5 billion EURO, of which around 15-20% is represented by metal additive manufacturing. 12

15 GROUP S ORGANIZATION 13

16 KEY EVENTS FOR 2018 SOLD BY TERNIENERGIA TWO ENERGY EFFICIENCY INTERVENTIONS TO FOSTER THE STRATEGIC REPOSITIONING On January 8, 2018, TerniEnergia has finalised and signed all the deeds relating to the sale of two energy efficiency interventions to Genera SpA, a 51% subsidiary of Genera Group Holdings B. V. and 49% owned by the IKAV Investments fund) active in investments in the energy efficiency sector. The two efficiency interventions transferred are related to the following: a lighting system of about 3,800 new high performance lighting points, with savings of over 1.1 GWh/year, realized on behalf of a cement factory in Sicily, already in operation; an intervention, almost completed, which involved the requalification of a historic building of about 12,500 square meters in the heart of Turin, with the renovation and insulation of the roof, the replacement of windows, the installation of an air conditioning system, the implementation of a new LED lighting system, the construction of an access control system, the installation and management of a Building Management System (BMS) for the integrated management of all services. The sale price of the first intervention amounts to Euro 480 thousand, and will be cash-settled by the current month of January. The second deed of sale provides for a price of Euro 1.7 million, which will be paid, for approximately Euro 1 million, through the assumption of payables to suppliers operating at the Turin worksite, for Euro 170,000 for works still to be carried out, which will be directly carried by the purchaser, and finally for Euro 528,000, paid in cash, of which Euro 385,000 by the current month of January, and Euro 71,500 at the plant test (and in any case no later than 15 April 2018) and the remaining Euro 71,500 at 12 months after the final test. The deeds provide that the transfer shall take effect from 29 December SOFTECO SISMAT (TERNIENERGIA GROUP) SIGNED A CONTRACT FOR TICKETING AND SMART PAYMENT SOLUTIONS FOR CARONTE & TOURIST On January 30, 2018, TerniEnergia announced that the Group s digital company Softeco Sismat has today signed a contract with Caronte & Tourist, leader in maritime connections to and from Sicily to Central Italy, for the development of a project to reorganise the Villa San Giovanni port terminal and the construction of a ticketing system at Villa Agip and connected automation. The contract provides solutions for ticketing, payment of tolls (smart payment) and access control for vehicle routing for a total amount of approximately Euro 2 million. The solutions developed by Softeco Sismat and based on the Adverto remote control system, the Group s proprietary technology, which has already been consolidated and operational for over 10 years in heterogeneous application contexts, envisage the activation of ticket sales systems for travel tickets, automatic payment of tolls and integrate complex access and transit management systems and automatic control of technological systems on field. All the systems in place will be integrated into a single remote control platform that will allow automatic interaction between them and monitoring of the entire system. The aim of the project is to automate and speed up toll payment and embarkation processes, thereby optimising resources and operational management costs. All the technological components proposed in the project by Softeco Sismat, which has been operating for over 30 years in the industrial automation sector, are positioned as leading technologies in the national and international field for this type of application. SKYROBOTIC DRONES OBTAINED ENAC CERTIFICATION FOR OVERFLYING CITIES AND CONGESTED AREAS On February 20, 2018, Skyrobotic has obtained project certification pursuant to art of the SAPR regulation from the Italian National Civil Aviation Authority (ENAC) for the SR-SF6c system. The certification requires a primary control and control system whose software complies with the aeronautical standards specified in the EUROCAE ED-12 specification at least at design reliability level D. Skyrobotic drones had already received from the Civil Aviation Authority project certification for series production pursuant to art of the SAPR regulation, which allowed operators to use drones, subject to authorisation by the competent Authority, in urban scenarios with safety restrictions. With the achievement of certification, Skyrobotic crowns a successful path in the pursuit of the most important sector qualifications: from the certification of aeronautical standard EN-9100 for the Nera Montoro (TR) plant, to the possibility of issuing project conformity certificates according to the art of the Civil Aviation Authority regulation, up to this last recognition, which marks a turning point for the entire Italian professional drones sector. With its own bouquet of qualifications, Skyrobotic takes the lead in the national producers sector, anticipates regulatory developments at European level and represents the ideal answer for leading operators in the professional, commercial, physical security and cybersecurity sectors at international level. Finally, the certification pursuant to art of the SAPR regulation is an indispensable condition for participation in tenders and tenders promoted by the main public apparatus for order and safety. 14

17 GIANCARLO GRASSO APPOINTED CHAIRMAN OF SKYROBOTIC On February 20, 2018, Skyrobotic announced that the Board of Directors today appointed Giancarlo Grasso as the new Chairman of the Company. Mr. Grasso took the place of Stefano Neri, Chairman of the Italeaf Group and reference shareholder of the company, who has taken on the position of Vice Chairman. TERNIENERGIA RE-ENTERS INTO POSSESSION OF ALL THE SHARES OF THE JVS ENERGIA ALTERNATIVA AND SOLTER AND OF THE 50% OF THE JV SOL TARENTI On March 12, 2018, TerniEnergia returned into its possession of 100% of the share capital of the Joint Ventures Energia Alternativa and Solter and of the 50% of the JV Sol Tarenti, owners of photovoltaic plants in Italy for a total of approximately 21 MW. In particular, following the fulfilment of the termination conditions relative to the lack of consent to the sale by the leasing companies, TerniEnergia re-entered into possession, at the same value of the disposal, of the following stakes: 50% of the shareholdings in Energia Alternativa Srl (value of approximately Euro 6.1 million) and Solter Srl (approximately Euro 1.3 million), owners respectively of 12 photovoltaic plants with a total installed power of approximately 13.9 MW and 4 photovoltaic plants with a total installed power of approximately 3.8 MW, from L&T City Real Estate Ltd; 45% of the shareholdings in Sol Tarenti Srl (approximately Euro 1.5 million), owner of 4 photovoltaic plants with a total installed power of approximately 3.3 MW, from Ranalli Immobiliare Srl. It should be noted that the return of the above shares in the Group s full availability represents a favourable condition for the potential sale of the assets owned by the above mentioned companies. TERNIENERGIA SIGNED AN AGREEMENT FOR THE SALE OF 10 PHOTOVOLTAIC PLANTS FOR A TOTAL OF 11 MW On March 17, 2018 TerniEnergia has signed an agreement for the sale by TerniEnergia, through its subsidiaries Energia Alternativa S.r.l. and Solter S.r.l., of n. 10 photovoltaic plants in Italy with a total installed capacity of around 11 MW to a leading international investment operator. The transaction concerns the purchase and sale of assets that have meanwhile become wholly owned by Group, and not the acquisition of shares in SPV (special purpose vehicles owning plants), as well as a reduced perimeter of the plants being sold, on the basis of discretionary assessments by the Purchasers and negotiations between the parties. This results in a difference in absolute value between the total expected consideration and the amount related to today s transaction, but a substantial alignment of the average amounts per MW, also due to the tax credits which remain in the hands of the TerniEnergia Group, following the different method of sale. The agreement provides that the closing of the asset sale transaction will take place by and no later than 31 October 2018, subject to the incorporation of a Newco, into which the perimeter of the portfolio of plants subject to the transaction will be contributed. The shareholding in the newly incorporated special purpose vehicle will then be transferred to the Purchasers as soon as the acquisition contract is signed (closing). The total consideration for the Purchasers acquisition of 100% of the share capital of the newly formed company is, in fact, equal to approximately Euro 6.2 million (Equity Value). The transaction envisages the acquisition by the buyer of financial debts related to the plants for approximately Euro 27.8 million. The TerniEnergia Group will also retain the tax credits relating to the plants involved in the transaction, for an amount of approximately Euro 3.7 million. The sale price was determined on the basis of the algebraic sum of future cash flows and net working capital of the plants involved in the transaction as at 31 December A price adjustment mechanism is envisaged based on the evolution of the Net Working Capital between 31 December 2016 and the closing date. The Enterprise Value of the assets sold amounts to approximately Euro 34 million. The closing of the transaction is subject, among other conditions, to the obtainment (if necessary) of the consent of credit institutions, in the form of waivers, to the sale of photovoltaic assets and other technical and financial conditions typical of this type of transaction. TerniEnergia and the Purchasers were assisted by Orrick as legal advisor. For the assessment of the fairness of the agreed price, TerniEnergia received a fairness opinion from a leading specialized advisor. POSTPONED THE APPROVAL OF THE FINANCIAL STATEMENTS AS AT DECEMBER 31ST, 2017 On March 30, 2018 Italeaf announced that the Company has obtained authorisation from Nasdaq to approve the 2017 consolidated financial statements and the separate financial statements of the Parent Company beyond the three months from the end of the year as required by market regulations. As a result of this exemption, the Board of Directors for the approval of the yearly financial statements has been held on 27 April The Company underlined that the postponement was determined by the decision taken by TerniEnergia, the main company of the Italeaf Group, to use the faculty, provided for by Italian regulations, to approve the draft of the separate financial statements as at 31 December 2017 and the consolidated financial statements on next 27 April 2018, within four months of the end of the period. This decision was taken by TerniEnergia on the basis of the opportunity to complete, before the approval of the financial statements, the new recovery and relaunch plan, aimed at pursuing, in the medium term, the transformation of the 15

18 Company into a smart company and overcoming the current financial stress of the Group, based on strategic guidelines identified by the Board of Directors, as announced on 27 March Having taken note of these circumstances, Italeaf has decided to postpone the approval of the financial statements, as highlighted above, in order to be able to incorporate the results and the prospective elements of the TerniEnergia industrial plan. THE BOARD OF DIRECTORS OF TERNIENERGIA APPROVED THE RESULTS AS AT 31 DECEMBER 2017 On April , the Board of Directors of TerniEnergia S.p.A., smart company listed on STAR segment of Borsa Italiana and part of the Italeaf Group, approved the draft financial statements for the year ended as at December 31, 2017 and the consolidated financial statements of the Group. Strong impact on the results of exceptional and non-recurrent writedowns aimed at supporting the project for the turnaround of the Company and the disposal of photovoltaic and environmental assets, as provided for in the Recovery and Relaunch Plan. It follows the summary of the results: Revenues of Euro 64 million, -24 % (Euro 84.1 million as at 31/12/2016); EBITDA amounted to Euro 2.2 million, -87.1% (Euro 17.3 million as at 31/12/2016) with EBITDA margin of 3.5% (20.6% as at 31/12/2016); EBIT of Euro million, (Euro 8.1 million as at 31/12/2016), EBT of Euro million (Euro 2.4 million as at 31/12/2016); Net result amounted to million, (Euro 1.15 million as at 31/12/2016); Net Financial Position of Euro 89.8 million (Euro 93.9 million as at 31/12/2016); Net equity amounted to Euro 21 million (Euro 57.5 million as at 31/12/2016). The Board of Directors resolved to request the exit from the Star segment and the transition to the MTA in order to concentrate the management s efforts on the Recovery and relaunch plan. THE BOARD OF DIRECTORS OF ITALEAF APPROVED THE YEAR END REPORT FOR 2017 On April , the The Board of Directors of Italeaf has approved its financial report for Examined the strategic guidelines of the Group s business and recovery plan. Extraordinary transactions are planned to reduce and accelerate the repayment of the current bank exposure, business continuity and optimisation and rationalisation of Italeaf s operating and structural costs. It follows the summary of the results: Net asset value (NAV) of Euro 24.1 million (Euro 1.41 per share) as at 31 December 2017; Core shareholdings contributed to the Gross Asset Value during 2017 for Euro 21 million, of which Euro 12 million related to TerniEnergia (listed on the STAR segment of the Italian Stock Exchange). Consolidated net loss of Euro 40.8 million (a loss of Euro 0.9 million for Italeaf, the Group s Parent Company). Consolidated revenues of Euro 64.3 million (Euro 3.7 million for Italeaf, the Group s Parent Company). Consolidated NFP of Euro million (Euro 16.9 million for the Parent Company Italeaf); Consolidated shareholders equity of Euro 25.9 million (Euro 27.9 million for the Parent Company Italeaf). Paolo Sebastiani has resigned as Chairman and member of the Board of Statutory Auditors; Caterina Brescia new Auditor. THE BOARD OF DIRECTORS OF TERNIENERGIA APPROVED THE INTERIM FINANCIAL REPORT AS AT 31 MARCH 2018 On May the Board of Directors of TerniEnergia S.p.A., smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, approved the interim financial report as at 31 March Further to what was communicated on April 27, 2018, TerniEnergia informed that Borsa Italiana has provided that the shares of the Company will be transferred to the MTA following the voluntary request of TerniEnergia to exit from the MTA-STAR segment. For this reason, TerniEnergia will continue to provide periodic financial information in addition to the annual and half-yearly financial report, as required by Article 154-ter, paragraphs 1 and 2, of the TUF, in summary form although in compliance with Article. 82-ter of the italian Issuers Regulation. It follows the summary of the results: Revenues equal to Euro 8.5 million, -71.7% (Euro 29.9 million as at 31/3/2017); EBITDA of Euro 1.5 million, -55.3% (Euro 3.4 million as at 31/3/2017) with Ebitda Margin at 18% (11.4% as at 31/3/2017); EBIT of Euro -0.9 million (Euro 1.4 million as at 31 March 2017), Result before taxes (EBT) of Euro -3.1 million (Euro 0.1 million as at 31 March 2017); Net result equal to Euro -2.4 million (Euro 0.2 million as at 31 March 2017); Net Financial Position equal to Euro 97 million (Euro 89.8 million as at 31/12/2017); Net equity equal to Euro 19.7 million (Euro 21 million as at 31/12/2017). The Board of Directors resolved to propose to the Shareholders Meeting the reduction of the share capital to cover losses, the revocation of the Stock Grant Plan, the reduction of the maximum compensation for the Board of Directors and the appointment of a new independent director. SOFTECO SISMAT (TERNIENERGIA GROUP) WON CONTRACT FOR INNOVATIVE SMART MOBILITY SYSTEM AT VICENZA On May TerniEnergia, smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, announced that Softeco Sismat, the digital company of the Group, signed a contract for the supply of the flexible transport management and control system to SVT Società Vicentina Trasporti. The agreement for a total value of approximately Euro 280 thousand, provides for the implementation of an innovative integrated platform for planning rides at the request of users. 16

19 SOFTECO SISMAT (TERNIENERGIA GROUP) LEADS THE PROJECT GOSMART GENOVA SMART MOBILITY 2.0 FOR THE MANAGEMENT OF URBAN MOBILITY On May TerniEnergia, smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, announced that Softeco Sismat, the digital company of the Group, will lead the project GoSmart Genoa Smart Mobility 2.0, for sustainable and intelligent mobility, funded under the call for proposals POR FESR Axis 1 Research and Innovation Action Scope Safety and Quality of Life as per the ranking published by FILSE ( the Ligurian Financial Company for Economic Development, a technical entity that supports and assists the Liguria Regional Authority and other Ligurian local authorities in the planning, definition and implementation of policies and measures to support the Ligurian economic system. The project, which will last two years, will receive a total funding of over 0.9 million Euros, involves a cluster of companies as T Bridge S.p.A., TeMA S.r.l., Artys S.r.l. and Aitek S.p.A. and continues the long positive series of projects in the field of sustainable and intelligent mobility ( thanks to which the TerniEnergia Group, through the R&D of Softeco Sismat, presents itself as an international solution provider ( SOFTECO SISMAT (TERNIENERGIA GROUP) PARTICIPATES IN THE PICKUP PROJECT FOR EFFICIENT AND FLEXIBLE ENERGY MANAGEMENT IN URBAN DISTRICTS On May TerniEnergia, smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, announced that Softeco Sismat, the digital company of the Group, participates in the PICK-UP project (IoT Sensor Integration Platform for the Control of Energy KPIs in the Urban Area and the Planning of Energy Efficiency Interventions and Integration with Microgrid), funded under the call for proposals POR FESR Axis 1 Research and Innovation Action Scope Safety and Quality of Life as per the ranking published by FILSE ( the Ligurian Financial Company for Economic Development, a technical entity that supports and assists the Liguria Regional Authority and other Ligurian local authorities in the planning, definition and implementation of policies and measures to support the Ligurian economic system. The two-year project, leaad by Gruppo SIGLA srl, will receive a total grant of over Euro 1 million and involves, in addition to Softeco Sismat, Impara S.r.l., MAPS S.p.A., ABB S.p.a., Flairbit S.r.l. and Stam. The financing confirms the constant commitment of the company in the development of innovative solutions in the Energy & Environment field ( and in the continuous technological transfer in solutions for its customers ( INTERIM REPORT JANUARY-MARCH 2018 OF ITALEAF On May the Board of Directors of Italeaf approved the results as at 31 March NAV of Euro 22.7 million. Ebitda equal to Euro 0.36 million. Net result equal to Euro 41 thousand. It follows the summary of the results: Revenues amounted to 763 thousand ( 8.6 million for the Italeaf Group consolidated). EBITDA equal 361 thousand ( 1.35 million for the Italeaf Group consolidated). EBIT amounted to 219 thousand ( million for the Italeaf Group consolidated). EBT equal to 6 thousand ( -3.3 million for the Italeaf Group consolidated). Net result amounted to 41 thousand ( million for the Italeaf Group consolidated) Shareholders Equity amounted to 27.7 million ( 24.8 million for the Italeaf Group consolidated) NFP of 5 million ( million for the Italeaf Group consolidated). NAV equal to 22.7 million; NAV per share equal to SOFTECO SISMAT (TERNIENERGIA GROUP) LEADS THE VIRTUS PROJECT FOR A VIRTUAL POWER PLANT PROTOTYPE On June TerniEnergia, smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, announced that Softeco Sismat, the digital company of the Group, leads the VIRTUS project ( VIRTUal Management of distributed energy resources ) financed by the Ministry of Economic Development through the Cassa per i servizi energetici e ambientali (CSEA, for a total of Euro 1.1 million, of which Euro 550 thousand as part related to the activities carried out by Softeco. RESIGNATION OF THE VICE-PRESIDENT OF TERNIENERGIA MR GIULIO GALLAZZI On June The Board of Directors of TerniEnergia, smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, met today, took note of the resignation with immediate effect of the board member and vice-president of the Company, Mr. Giulio Gallazzi. The decision was taken by Mr. Gallazzi believing that a further presence in the Board of Directors of TerniEnergia could no longer bring added value to the Board works, disagreeing himself with the path that the Company intended to undertake, preferring solutions aimed at a disposal of owned assets to be combined with agreements for the restructuring of bank debt, postponing a possible strengthening of equity to a later stage; the latter action, considered by Mr. Gallazzi, however, essential and priority over any other action. 17

20 TERNIENERGIA SHAREHOLDERS MEETING APPROVED 2017 FINANCIAL STATEMENTS; APPOINTMENT OF PAOLO PICCINI AS INDEPENDENT DIRECTOR On June The ordinary and extraordinary Shareholders Meeting of TerniEnergia S.p.A., smart company listed on MTA of Borsa Italiana and part of the Italeaf Group, met under Stefano Neri s chairmanship. It follows the main resolutions of the shareholders' meeting: Approval of the financial statements for the year ended 31 December 2017; Approval of the First Section of the Compensation Report pursuant to Article 123-ter of the Uniform Financial Code; Appointment of two co-opted directors: Paolo Allegretti and Stefania Bertolini; Appointment of a new independent director: Paolo Piccini, CEO of Liguria Digitale and manager with 30 years of experience in the field of information and communication technologies, defense and security in multinational technology sector; Determination of the total compensation of Directors; Revocation of the Stock Grant Plan approved on 2 May 2017; Provisions pursuant to Article 2446 of the Italian Civil Code. REPORTS OF THE INDEPENDENT AUDITORS On June the Independent Auditors EY SpA have been issued their opinion to accompany the Consolidated Annual Financial Report as at 31 December 2017 and the Separate Financial Statements as at 31 December 2017 of Italeaf SpA. The reports of the independent auditors EY concluded with the impossibility to express an opinion on the financial statements as at 31 December GIL CAPITAL LTD RENOUNCED THE ACQUISITION OF THE EPC AND O&M PV BUSINESS LINE OF TERNIENERGIA On June TerniEnergia informed that the transaction finalized to the sale of the business branch On site Engineering and Operations (EPC and photovoltaic O&M) from TerniEnergia to GIL Capital Ltd was not completed due to the failure to meet some of the requirements, with particular reference to those of a technical-legal nature, typical of this type of transactions ITALEAF S ANNUAL ORDINARY SHAREHOLDERS MEETING On June the Annual Ordinary Shareholders Meeting of Italeaf SpA, the holding company and first Italian company builder active in the cleantech and smart innovation sectors, listed on the NASDAQ First North of the Stockholm Stock Exchange, was held at the company s headquarters in Narni (TR). It follows the main resultions of the Shareholders Meeting: Approval of the Group s 2017 financial statements and 2017 consolidated financial statements; The 2017 operating loss will be carried forward; The Board of Directors confirmed for the three-year period; The Shareholders Meeting resolved to appoint the members of the Board of Statutory Auditors. Andrea Bellucci, as Chairman; Fausto Sciamanna, as Statutory Auditor; Caterina Brescia, as Statutory Auditor; Marco Chieruzzi, as Alternate Auditor; Andrea Sattin, as Alternate Auditor, for the three-year period TERNIENERGIA SOLD TWO ENERGY EFFICIENCY PROJECTS TO ESTRA CLIMA SRL On July 23, 2018 TerniEnergia, a smart company listed on the MTA of Borsa Italiana and part of the Italeaf Group, announced that it has finalized and signed all the deeds relating to the sale of two business units relating to energy efficiency interventions to Estra Clima Srl, a company of Estra Group, one of the leading player in the distribution and sale of natural gas in Central Italy, active in the sale and procurement of electricity, as well as in telecommunications, in the design and management of energy services and in the power generation from renewable sources. The company branches to be sold, with the relative financial and trade debts, refer to two energy efficiency lighting projects on behalf of two Tuscan municipalities, including the integrated management, ordinary and extraordinary maintenance of public lighting systems. The value of the two branches sold is equal to Euro 1.4 million gross of the debt relating to the financial lease on the plant of one of the two municipalities for Euro 0.45 million (inclusive of VAT) and trade debts for approximately Euro 0.25 million, as well as the value of some works to be carried out at charge of Estra Clima for approximately Euro 0.17 million. Payment will be made in cash: 90% of the collection, which is made up of the first three tranches, is subject to the fulfilment of the above conditions precedent, while the remaining 10% will be paid 6 months after the fulfilment of the above conditions. THE BOARD OF DIRECTORS ASSIGNED OPERATIONAL POWERS TO THE CHIEF EXECUTIVE OFFICER On July, Italeaf s Board of Directors met, for the first time after the renewal approved by the Shareholders Meeting, appointing Stefano Neri, Chairman, Monica Federici, Chief Executive Officer of the Company. The structure of proxies was also confirmed: to the Chairman the powers granted by law and the bylaws, the coordination of the Board of Directors and that of the Group s strategic activities; to the Chief Executive Officer, in brief, all the powers necessary to carry out acts pertaining to ordinary company business, with the exception of the powers reserved by law, and the bylaws to the Board of Directors, with a limit of Euro 500 thousand per individual transaction. The composition of the Board of Directors is completed by Domenico De Marinis, an independent director. 18