PRESIDENT LETTER TO STAKEHOLDERS

Only six months have passed since the publication of the second Sustainability Report and since then we have continued our Sustainability Journey, the journey towards an ever greater sustainability that is not only environmental, but also economic and social, in line with the ESG principles promoted by the European Union and with the objectives of the 2030 Agenda. There are several initiatives that we have carried out in this direction and that lead us today to proudly publish the third Sustainability Report of Gruppo Mastrotto On this occasion, we decided to have our document certified by a third party, to give a strong signal to the market and our customers not only of transparency, but also of determination in pursuing the ambitious objectives we have set ourselves.

The implementation of our Sustainability Plan has affected all sectors of the company in recent months, from the product to the processes, from human resources to the relationship with the territory. To document our actions in an even more concrete and transparent way, on the occasion of Lineapelle, last February, we presented the Sustainability Passport, a document that summarises what the Group has achieved in this area and through which we wanted to extend an invitation to the entire fashion chain and our stakeholders, to join us in this journey towards sustainability, in the belief that only through a serious and shared commitment on the part of the entire supply chain, it is possible to ensure sustainable development for future generations.

We have joined the United Nations Global Compact, the largest strategic corporate citizenship initiative in the world in which more than 18,000 companies from 160 countries around the world have taken part to date and we have confirmed the Carbon Neutrality of scope 1 and 2 of Gruppo Mastrotto Express - the world’s largest logistics hub of leathers in ready delivery. Another important step was the patenting activity, which led to the creation of "Reviva", the innovative material, GRS (Global Recycle Standard) certified, dedicated to the world of fashion, which arises from the reuse of our waste: scraps of finished leather, and which in this way completes the circularity of the process of using of by-product of our tanning cycle. We have also obtained the new LEATHER STANDARD environmental certification by OEKO-TEX®, recognised worldwide for leather and leather goods, which guarantees the purchase of safe products for the health of people and the environment.

These are some of the stages of our commitment to making production processes in our sector, the tanning sector, increasingly sustainable, which today represents an exemplary case of circular economy in which a waste of the food industry - the skin - is ennobled and transformed into one of the products that symbolise excellence and quality of Made in Italy in the world . This report, however, is also about people and territory. In the first case, we continued to consolidate our welfare system, further increasing training hours and services aimed at the well-being of our employees and their families. In the second one, we continued to support in different formsfrom donations to the support of specific initiatives - the places that saw us born and grow as a company.

Finally, we have decided to reserve a part of the document for actions taken also by our foreign offices, because we want to represent the entirety of our Group, which has extended the same principles to the entire organisation.

A heartfelt thank you from the Board of Directors and my staff to all the work team that participated in the drafting of this Budget, which allows us to look to the past by consolidating the goals achieved and to the future with the conviction that we have taken the right path. Our Sustainability Journey is just the beginning.

President of Gruppo Mastrotto

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