Dear shareholders,
the year 2012 ended, for the financial markets, with a general feeling of positivity that twelve months ago almost no one had. the structural problems of the major economies have not been resolved, But the risk of default or "systemic collapse" that many took for certain in 2011 and in 2012, now seem disappeared.
TIP management has never believed in such scenarios and the company continued to operate and invest within the established plans, regardless of fears and other interferences; we are therefore very

pleased about the results achieved so far.

We begin as usual with the analysis of TIP stock performance, the only disappointing aspect of the recent past, since the shares, despite the good results of the company, remained in line with the levels of
2011 year-end. But since such price had a very positive performance in the past, the cumulative amount of the performance for the last 2-3 years is more than satisfactory and the medium term outperformance
with respect to the reference indexes remains constant.

T IP stock from 1.1.2010 vs. some reference inde xes

1.70

1.50

1.30

1.10

0.90

0.70

0.50

TIP

+28,9%

FTSE Europe

Small Cap

+24,1% STOXX Europe

Small 200

+18,0% MSCI Small Cap

Europe

+15,9% HSBC Euro

Smaller Comp.

+5,0%

FTSE Italia STAR

-3,8%

MSCI EUR Finance

-14,8%

FTSE Italia Small

Cap

-44,4%

TIP MSCI EUR Finance

MSCI Small Cap Europe FTSE Italia STAR

FTSE Italia Small Cap HSBC European Smaller Companies

STOXX Europe Small 200 FTSE Europe Small Cap

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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Moreover TIP had a good level of dividend distribution in the last years and has continued to buy treasury shares, for a global amount

of 6,3 million euro during only the 2012.

The good composition of the portfolio investments, the available liquidity and the positive performance of the advisory division, however, would have "deserved" - and in our opinion, deserve - a different appreciation from the market. We are not for the moment in the position of precisely quantifying the net shareholders equity as at December 31, 2012, but we have updated the market value of equity investments for the listed companies; such value has increased bymore than 35 million euro with respect to December 31, 2011, with anincrease of about 20%, but TIP share price remained stable. It is useless to go back to the fact that various criteria (such as those based on NAV - Net Asset Value) adopted by many analysts are not applicable "tout court" for an activity such as ours, but pointing out certain contradictions is, especially in this moment, a must.

The "total return" (stock performance, effect of the purchases of treasury shares, dividends, reserves and warrants distribution) from the beginning of 2010 can be estimated above 35%, always with a limited implicit risk level. in the same period FTSE Mib lost more than

25%.
Therefore we hope that in the future - possibly in the near future - the share price will correspond, in a more coherent way, with the fundamental elements that the company incorporates. This is essential in order to continue to give you those satisfactions that TIP, since its establishment, has been able to guarantee to its shareholders.
During 2012 there were major movements of shares among shareholders, of which we have sometimes been an active part. Among the reasons for the disposals of TIP shares is the fact that during the last years it has been among the best stocks in the portfolio of many
shareholders and some of them have now decided to take cash-in the

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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profit. Someone needed resources for their companies and others are rebalancing their investments. On the other side many shareholders have significantly increased their share in the company and new shareholders have joined us. TIP management has continued to

increase its stake.

TIP trading volumes have also increased, making TIP one of the most liquid mid-cap companies in the Italian Stock Exchange; This should attract new investors that, until now, could not invest in TIP shares because of
constraints in terms of volume.

D A I LY A V E R A G E V O LU ME

Given the improved "sentiment" towards our country we are intensifying meetings with potential investors in order to illustrate agroup as TIP that in any case represents a good "proxy" of industrial

excellence.

- Investments and divestments -

Since 2010 TIP has invested, including the promoted club deals, approximately 350 million euro and has become one of the major Italian financial investors on the mid-size segment. Certainly the first

one for minority stakes.

in ten years TIP has invested (Including direct investments and club deals) slightly less than one billion euro; the exited investments (47 out of a total of 61 investments) achieved capital gains in about 75%

of the cases.

During 2012 we increased our stake in AMPLIFON, BEE TEAM (now BE), BOLZONI, D'AMICO, INTERPUMP, NOEMALIFE, MONRIF and SERVIZI ITALIA; in many cases TIP has promoted, led and sometimes guaranteed capital increase transactions, all designed to support acquisitions and / or
strategic investments. The last two capital increases, Servizi Italia

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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and d'Amico, provided investors with a return of over 50%in just a few months. This has to be interpreted as a strong signal of the undervaluation of many Italian mid Cap companies and of the positive role of a partner like TIP.

in 2012 we also made some divestments, with the aim of continuing the policy of rationalizing our portfolio. We exited from the capital of DE' LONGHI, DIASORIN, IMA, NH HOTELES and ZIGNAGO VETRO; All thisdivestments have achieved capital gains. We continue to believe in the prospects of these companies, but we preferred to focus on investments of bigger size and in order to be prepared to carry on new

relevant transactions.

- Main investee companies -

Some of TIP portfolio companies showed record results during 2011. During the first 9 months of 2012 these companies achieved a growth in revenues and an increase in margins, even though in some cases the different perimeter connected to the completed acquisitions has contributed to such results. This should mean that, in absence of negative events - for which there are no hints - in 2012 these companies should further improve the excellent results reached in
2011.

These figures show, more than any other information or valuation, the level of excellence, uniqueness and dynamism of TIP investee companies, despite the well known general economic situation.

About 70% of TIP direct investments (in terms of investments intrinsic value)are concentrated in the following sectors: Technology, "Third age" and luxury; The level of excellence and the presence in such sectors could make TIP achieve good results also in 2013. And

beyond.

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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- Advisory division -

In 2012 the advisory division has achieved good results and the expected revenues should amount to slightly less than 5 million euro.Considering that at September 30 total revenues amounted toapproximately 2.5 million euro, the fourth quarter of the year has

confirmed the ability of TIP to close deals.

Given the worldwide decline in the Mergers and Acquisitions activity in 2011 and 2012, such result allows to include the advisory division of TIP among the leading Italian players in the mid-size company segment.
In 2012 most of the deals involved foreign clients or counterparts, reflecting the constant development of similar deals. TIP has benefited, more than in the past, from the contribution of foreign subsidiaries that operate in M&A financial advisory and of the
international network of M&A boutiques that was created years ago.
- The future -

If, as we have already mentioned, the worst feelings on the performance of international economies and in particular of Europe seem - and most likely are - overcome, this should represent a glimpse,in the future, for a good chance of further profits, even more so for

a group as TIP.

Since the main investee companies and the advisory division have shown positive behavior during non brilliant years for the economy, it would seem logical to imagine that the start of a more encouraging cycle
can lead to even better results, especially for who has invested a lot.

In the last years all the major investee companies have made highly strategic acquisitions and this is certainly prodromic to further

strengthened leadership positions, with obvious consequences on

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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their income statements and dividends to be distributed and - what is

more important for TIP - with further increase in their intrinsic value.

Many of these companies are still acquisitive, present a solid financial situation and will therefore be able to speed up their development projects. TIP's willingness to provide them with all the necessary support, both in financial and advisory fields, remains unchanged, possibly further enhanced by the improved outlook.
We continue to look for companies that have both ambitious and long term projects, in Italy and abroad.
With respect to what we mentioned in the letter of last year about the possibility to act as an aggregator of management companies related to private equity funds we had many contacts, but the poor quality of the portfolios we examined, the clear willingness of the management teams of perpetuating situations of uncertainty to investors rather than highlighting the real content and, not least, the habit of "bartering" with conventional values more than with the application of correct prices, has induced us to desist.
However It seems that some banking groups - as part of the review of their portfolios that has now become necessary - are considering to look for deals at market values, but we should see whether the internal bureaucracies, personal relationships and the capacities of the financial statements in terms potential write-downs, will allow such transactions.

Summarizing, for 2013:

1. TIP confirms its intention to continue the cycle of significant investments launched three years ago in order to continue to be a partner for the accelerated growth of European companies, possibly industry leaders eager to seek ambitious growth paths in terms of industrial development, always on a
very solid financial basis.

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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2. TIP intends to further increase its interaction with foreign countries through a more effective use of its international network and subsidiaries in Germany and Hong Kong, and also through further acquisitions outside Italy.
3. While conscious of the fact that to maximize the achievement of the intrinsic values of our investments it would be necessary to wait for a more general and structural improvement of the economic situation, TIP is starting to conceive more relevant divestment processes than those implemented in the recent past. This in order to further demonstrate the quality of the portfolio and the magnitude of the gains that are achievable, trying, as far as possible, to spread them over time.
Giovanni Tamburi Alessandra Gritti Claudio Berretti
Milan, January 31, 2013

T h e i n fo rm a ti o n c o n ta i n e d i n t hi s le tte r i s i n te n d e d fo r p u re ly i n fo rm a ti o n p urp o s e s ; thi s le tte r i n n o w a y c o n s ti tu te s s o li c i t a ti o n o f p ub li c i n v e s tm e n ts , n o r i n d i c a ti o n fo r e v e n t ua l b uy s .

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