Tessellis S p A : Group 2022 Sustainability Report

2SB

TESSELLIS Group

2022 Sustainability Report

Consolidated Non-Financial Statement pursuant to Legislative Decree No. 254/2016a

Index

4

Dear All,

2022 was a particularly significant year for us, following the merger of Linkem Retail Sr.l., the commercial unit of the Linkem Group (now OpNet), into Tiscali S.p.A., which was finalised on 1 August 2022. The purpose of the merger was to integrate the two companies into a single corporate and commercial entity so as to create synergies, consolidate and strengthen the market position.

The new name we have given to the merged Group, Tessellis, which means mosaic in Latin, well represents our values of inclusion and appreciation of diversity and our desire to harmoniously unite the pieces of the Group's various souls.

For each of the five fundamental pillars of our sixth social report - technological innovation, customers, people, environmental impact, and governance - I would like to briefly highlight a few initiatives that describe us more than others.

Technological Innovation

In 2022, thanks to the agreements in place with the main wholesale operators and the recent merger with Linkem, Tessellis has expanded its coverage in the different Ultrabroadband technologies, strengthening its position and being able to offer the best connection technology available, anytime, and anywhere, at the same price for everyone without distinction of geographical areas.

With a view to actively contributing to the country's democratic digitalisation processes, we have started a path to acCompany Italian schools towards the digital transition, proposing solutions for new learning environments dedicated to primary and secondary schools, based on the guidelines of the 'Scuola 4.0' ministerial plan.

The Group has also initiated a series of collaborations with a number of Italian municipalities for the transfer of technology in the smart city area and the digital transition of the local public administration. In particular, we took part, as a technology partner and provider of 5G solutions for the Municipalities of Pesaro and Campobasso, in MIMIT's call for tenders 2022 'Emerging Technology Houses': the two proposals promoted by our Group are among the seven initiatives that have received funding within the government's programme to support 5G technologies.

Customers

Providing citizens with fast and quality connectivity services, as well as developing solutions that meet the specific needs of each customer, innovative and secure, are priorities in the Group's strategy. In the second half of the year, we created a caring team with a specific focus on prevention, retention, and migration of the customer base towards the best available technological profile, and from October 2022 we entrusted customer care exclusively to the Group's proprietary customer care, in order to make management processes even more efficient. In addition to this, to guarantee the Customer greater timeliness and autonomy in handling the simplest requests, in 2022 we introduced 2 new assistance channels: the VoiceBot and the Chatbot, systems based on artificial intelligence that, by interpreting natural language, can provide timely answers to requests made by Customers.

5

People

The new Company resulting from the merger faces the challenge of integrating the experiences and cultural backgrounds of its people: we have therefore entrusted the Human Resources department, rebranded People Value, with the task of fostering the construction of a new corporate culture that gives each resource the opportunity to develop his or her skills, in line with the needs of the business.

A fixed point in our approach to personnel management was that of not envisaging any redundancies after the merger: not only were all resources absorbed within the new functional perimeters, but the internalisation of customer service activities carried out by outsourcers led to the hiring of 31 people who had permanent employment contracts with the outsourcers.

In addition, we ended the solidarity contract, which applied to 488 employees with an average reduction in working hours of 20%, in advance to 31 May 2022, thus enabling full payback.

In a Company context of strong focus on issues of plurality and inclusion, the 'Regenerated by Work' project fits in, offering job opportunities and consequent social reintegration to people serving prison sentences. Tessellis has set up three workshops for modem regeneration and in addition to the workshops already activated at the prisons of Lecce and Rebibbia, a third one will be opened at the Cagliari Uta prison in July 2022. The 10 inmates involved in Lecce and the 6 inmates involved in Rebibbia were thus joined by 8 inmates from Cagliari Uta, who were included in the Tessellis workforce with a fixed-term contract after an evaluation training course.

Environmental Sustainability

In 2022, Tessellis was able to further improve its energy efficiency targets, despite the absence of new investments, by exploiting the contribution from the optimisation of interventions carried out in previous years.

In terms of sustainable mobility, the Company inherited an ambitious project undertaken by Linkem, aimed at optimising the Company car fleet through the replacement of diesel-powered vehicles with hybrid/electric vehicles, in order to significantly reduce CO2 emissions.

At the Cagliari site of Sa Illetta, which is located in an area of great naturalistic value, an awareness- raising campaign was launched for all personnel to maintain their vehicles in efficient working order, in order to avoid any contamination of the soil resulting from leaks of lubricating oil, fuel and other pollutants.

On the occasion of World Earth Day in April 2022, the Tiscali.it portal has launched an initiative aimed at spreading the message of the importance of environmental protection in a concrete way: in collaboration with 'The Greenest', a project of the Swiss Institute for Disruptive Innovation (Sidi), it has donated to its readers the possibility of planting a tree free of charge up to a maximum of 50,000 trees in total.

6

Governance

Tessellis is constantly committed to ensuring conditions of fairness and transparency in the conduct of business and corporate activities, to protect its position and image and the expectations of all its stakeholders.

Among the various strategies put in place within the supply chain, in 2022 we have confirmed our commitment to use mainly national and, where possible, local suppliers. Starting next year, we will implement a new supplier evaluation process based on reliable criteria that include environmental sustainability.

Please, read more about the details of our sustainability report on the following pages.

Happy reading.

The Chief Executive Officer

Davide Rota

7

Methodological Note

Tessellis S.p.A. (hereinafter also referred to as "Tessellis"), as a public interest entity (pursuant to Article 16, paragraph 1, of Legislative Decree No. 39 of 27 January 2010) falls within the scope of Legislative Decree No. 254/2016, which transposes Directive 2014/95/EU on non-financial reporting. Hence, in order to comply with the obligations as set forth in Articles No. 3 and 4 of the aforementioned Legislative Decree, Tessellis is required to prepare a Consolidated Non- Financial Statement describing the initiatives and main results in terms of sustainability performance achieved during the financial year 2022. This document represents the first Consolidated Non-Financial Statement (hereinafter referred to as the "DNF" or "Sustainability Report") of the Tessellis Group (hereinafter also referred to as "Tessellis" or the "Group").

It should be noted that, following the analysis of the relevance of the issues provided for by Article No. 3 of Legislative No. 254/2016 and in consideration of the specific characteristics of the business, the issues concerning human rights, water consumption and polluting emissions into the atmosphere, not included in greenhouse gas emissions, were not considered relevant in order to ensure the understanding of the Group's activity, its performance, its results and the impact it produces; therefore, they are not dealt with within this document.

As provided for in Article No. 5 of Legislative Decree No. 254/16, this document constitutes a separate report, marked with the appropriate wording, in order to relate it to the Consolidated Non-Financial Statement required by the regulations. The DNF 2022 was prepared in accordance with the GRI Sustainability Reporting Standards (2021) published by the Global Reporting Initiative (GRI). In the appendix to the document, a table of reported GRI indicators can be found. The reported contents have been defined from the results of a materiality analysis, carried out in 2022 following changes in the Group's structure and at a regulatory level, which identified the material aspects for the Group and its stakeholders, and which is contained within the document.

Tessellis considers the Sustainability Report a fundamental tool for dialogue with its stakeholders, to disclose its work in the CSR field and to open a dialogue with them.

The DNF economic data and financial information refer (in particular the data in the sections "Directly generated and distributed economic value" and "EU Taxonomy of Sustainable Economic Activities") to all subsidiaries and companies consolidated on a line-by-line basis in the Group's Consolidated Financial Statements as at 31 December 2022. In particular, the Consolidated Financial Statements as at 31 December 2022 include the economic and financial results from the date of first consolidation, i.e., 1 August 2022. For further details, please refer to the 2022 Consolidated Financial Report.

The scope of information relating to social and environmental data in the 2022 Sustainability Report consists only of Tiscali Italia S.p.A. (hereinafter also referred to as "Tiscali") and refers to the entire reporting period (1 January 2022 - 31 December 2022). Any variations with respect to what is stated are appropriately indicated in a note or within the text.

8

The Group has undergone substantial changes in the composition of its internal structure, starting from the incorporation, finalised on 1 August 2022, of the Linkem Retail S.r.l. unit of business into Tiscali Italia S.p.A. (hereinafter also referred to as the "Merger"). For further details, please refer to the 2022 Consolidated Financial Review. The purpose of the Merger was to integrate the Tessellis Group and the retail arm of the Linkem Group (now OpNet) into a single corporate and commercial entity in order to develop synergies, consolidate and strengthen its market position; as a result of the Merger, Tessellis has become the third largest operator in the fixed market and the first in the segment of Ultrabroadband access in FWA+FTTH technologies, consolidating its strategic positioning in the reference market.

The year 2022 saw a further enlargement of the consolidation scope following the acquisition of the companies listed below:

• Linkem Services S.r.l. and 3P Italia S.p.A. were contributed to the subsidiary Tiscali Italia S.p.A. on 1 August 2022 as a result of and as part of the Merger; with a subsequent transaction on 26 September 2022, the stake in 3P Italia S.p.A. was consolidated through the acquisition of a controlling stake;
• Veesible S.r.l., the Tessellis Group's advertising concessionaire, was incorporated on 27 October 2022 and is 75% owned by Tiscali Italia S.p.A..

The three companies mentioned above have not been included in the reporting of social and environmental data as they are not considered relevant to understanding the Tessellis Group's activities, its performance, results, and impact.

For the purpose of a correct representation of performance and to ensure the reliability of the data, the use of estimates has been limited as much as possible and, if present, they are appropriately reported.

This Consolidated Non-Financial Statement has been presented and approved by the Board of Directors of Tessellis on 11 May 2023.

This document was subjected to a limited assurance engagement in accordance with the criteria set forth in the International Standard on Assurance Engagements ISAE 3000 Revised by the appointed auditor Deloitte & Touche S.p.A.. The audit was carried out according to the procedures indicated in the "Report of the Independent Auditor" which can be found at the end of this document.

The Consolidated Non-Financial Statement is published on an annual basis.

This Consolidated Non-Financial Statement is available on the Company's website at www.tessellis.it, in the "Documents" - "Financial Statements and Reports" section. Hard copies are available at the Company's premises and can be requested by e-mail at the following address: ir@tiscali.com(Investor Relations).

9

1. Tessellis Group:

profile, mission, and values

Founded in 1998 as a small alternative telecommunications operator, Tessellis (formerly Tiscali S.p.A.) was the first operator, in 1999, to promote 'free' Internet in Italy and Western Europe, with the launch of an entirely free Internet connection service. Its listing on the stock exchange also dates back to 1999. Over the years, Tessellis has continued to distinguish itself for its ability to offer its customers quality internet connection services at competitive prices compared to the big Italian players.

In August 2022, the path that led to the merger between Tiscali S.p.A. and Linkem Retail S.r.l. was finalised, giving rise to a new industrial group that took the name Tessellis S.p.A.

Tessellis is a Smart Telco with one of the largest Fibre coverages available in Italy. Its business areas include Tiscali Italia, one of the leading national operators in the ultrabroadband segment in the most innovative and promising technologies: FWA (Fixed Wireless Access) and FTTH (Fibre To The Home).

There are three main areas of activity: Telco (fixed and mobile services), Media&Tech (tiscali.it portal and advertising concessionaire) and Future Communities (vertical platforms and services).

For Tessellis, the creation of value is a practice that involves the entire chain: from caring for people, an integral part of the Group's history, to supporting local communities, the relationship of trust with our customers, the passion for innovation, and the commitment to society in the broadest sense of the term.

1.1 Mission and values

Tessellis' Mission is to offer equal and free access to digital life for all. Thanks to our more than twenty years of experience as Internet pioneers and first movers, we want to continue to play a leading role in the digital revolution, with an ecosystem of projects, ideas, and business at the service of the growth of people and businesses.

Our values are as follows:

INNOVATION: We believe that technology can and should be a positive force and that innovation contributes to improving people's lives. We experience change as an opportunity for growth and are committed to creating value through industrial synergies. We operate with a long-term vision, each success for us is a piece in a mosaic of constantly evolving goals.

INTEGRITY: We take care of our employees and consumers. Our decisions and actions are guided by values such as transparency, honesty, and fairness. Always oriented towards a long- term perspective, we work with respect for customers, employees, suppliers, and shareholders and are and shareholders and are committed to the highest standards of quality, safety, and

10