Servizi Italia

Quarterly Report • Aug 29, 2024

Half-year Financial Report

as at 30 June 2024

SERVIZI ITALIA S.P.A.

Via S. Pietro, 59/B 43019 Castellina di Soragna (PR) – ITALY Tel. +39 0521 598511 – sede@si-servizitalia.com www.servizitaliagroup.com

Table of Contents

GENERAL INFORMATION

Company officers and corporate informaঞon 3
Group structure 4

INTERIM REPORT 5
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HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE GROUP AS AT 30 JUNE 2024

Accounঞng schedules 18
Explanatory Notes 22

CERTIFICATION OF THE HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PURSUANT TO ART. 154 BIS OF ITALIAN LEGISLATIVE DECREE 59/98 ............................... 48

INDEPENDENT AUDITORS' REPORT ............................................................................................... 49

COMPANY OFFICERS AND CORPORATE INFORMATION

Board of Directors (in office unঞl approval of the Separate Financial Statements as at 31 December 2026)

Name and Surname	Posiঞon
Roberto Olivi (*)	Chairman
Ilaria Eugeniani (*)	Deputy Chairwoman
Michele Magagna (*)	Director
Umberto Zuliani (1)	Director
(1) Roberta Labanঞ	Independent Director
Benede'a Pinna (1)(2)	Independent Director
Antonio Arisঞde Mastrangelo	Independent Director
(1) Member of the Governance and Related Parঞes Commi'ee; (2) Lead Independent Director

(*) Members of the Execuঞve Commiee

Board of Statutory Auditors (in office unঞl approval of the Separate Financial Statements as at 31 December 2025)

Name and Surname	Posiঞon
Antonino Girelli	Chairman
Gianfranco Milanesi	Standing auditor
Elena Ioম	Standing auditor
Lorenzo Keller	Alternate auditor
Valeria Gasperini	Alternate auditor

Supervisory Body (in office unঞl 2 February 2025)

Name and Surname	Posiঞon
Veronica Camellini	Chairwoman
Antonio Ciriello	Member
Elena Martelli	Member

Independent Auditors (in office unঞl approval of the Separate Financial Statements as at 31 December 2032) PriceWaterhouseCoopers S.p.A. – Piazza Tre Torri, 2 - 20145 Milan

Registered offices and company informaঞon

Servizi Italia S.p.A. Via S. Pietro, 59/b – 43019 Castellina di Soragna (Parma) – Italy Tel. +390524598511, Fax +390524598232, website: www.servizitaliagroup.com; Share Capital: Euro 31,809,451 fully paid-up Tax code and Parma Register of Companies no. 08531760158; Cerঞfied email: si-servizitalia@postacert.cedacri.it Founded: 1986 Lisঞng segment: Euronext STAR Milan Ordinary Share ISIN codes: IT0003814537, BLOOMBERG: SRI IM, REUTERS: SRI.MI LEI Code: 815600C8F6D5ACBA9F86

Investor Relaঞons

Pietro Gilioম (IRM) e-mail: investor@si-servizitalia.com – Tel. +390524598511, Fax +390524598232

GROUP STRUCTURE

Servizi Italia S.p.A., with registered office in Castellina di Soragna (Parma, Italy), listed in the Euronext STAR Milan segment of the EXM, is the leading Italian operator in the supply of integrated services for the rental, washing and sterilisaঞon of texঞles and surgical instruments for hospital faciliঞes. With a technologically advanced producঞon plaorm broken down into laundering faciliঞes, texঞle sterilisaঞon centres, surgical instrument sterilisaঞon centres and numerous wardrobes, the Company and its Italian and overseas subsidiaries forming the Servizi Italia Group, mainly provide their broad and diversified range of services for public and private healthcare faciliঞes in central and northern Italy, in the state of São Paulo in Brazil, in Turkey, India, Albania and Morocco.

As at 30 June 2024, the Servizi Italia Group included the following companies:

Company name Parent Company and Subsidiaries	Registered office		Share capital	Interest of equity investment
Servizi Italia S.p.A.	Castellina di Soragna (Parma) – Italy	EUR	31,809,451	Parent Company
Ekolav S.r.l.	Lastra a Signa (Florence) – Italy	EUR	100,000	100%
Wash Service S.r.l.	Castellina di Soragna (Parma) – Italy	EUR	10,000	90%
Steritek S.p.A.	Malagnino (Cremona) – Italy	EUR	134,500	95%
San Marঞno 2000 S.c.r.l.	Genoa – Italy	EUR	10,000	60%
SRI Empreendimentos e Parঞcipações L.t.d.a.	City of São Paulo, State of São Paulo – Brazil	BRL	217,757,982	100%
Lavsim Higienização Têxঞl S.A.	São Roque, State of São Paulo – Brazil	BRL	32,330,000	100%(*)
Maxlav Lavanderia Especializada S.A.	Jaguariúna, State of São Paulo – Brazil	BRL	2,825,060	100%(*)
Vida Lavanderias Especializada S.A.	São Roque, State of São Paulo – Brazil	BRL	3,600,000	100%(*)
Aqualav Serviços De Higienização Ltda	Vila Idalina, Poá, State of São Paulo – Brazil	BRL	15,400,000	100%(*)
Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ	Ankara – Turkey	TRY	85,000,000	55%
Ergülteks Temizlik Teksঞl Ltd. Sঞ.	Smyrna – Turkey	TRY	1,700,000	57.5%(**)
Ankateks Tur. Teks. Tem.Sanve TIC. A.s. – Olimpos Laundry Teks.Tem. Hizm. Ve Tur. San. Tic. LTD.Sঞ IS Ortakligi	Antalya –Turkey	TRY	10,000	51%(**)

(*) held through SRI Empreendimentos e Parࢼcipações Ltda

(**) held through Ankateks Turizm İnşaat Teksࢼl Temizleme Sanayi ve Ticaret Ltd Şirkeࢼ

Below are the associates and jointly-controlled companies, measured using the equity method in the consolidated financial statements:

Company name Associates and Jointly-Controlled Companies	Registered office		Share capital	Interest of equity investment
Shubhram Hospital Soluঞons Private Ltd.	New Delhi – India	INR	362,219,020	51%
Servizi Sanitari Integraঞ Marocco S.a.r.l.	Casablanca – Morocco	MAD	122,000	51%
SAS Sterilizasyon Servisleri A.Ş.	Istanbul – Turkey	TRY	36,553,000	51%
Arezzo Servizi S.c.r.l.	Arezzo – Italy	EUR	10,000	50%
PSIS S.r.l.	Padua – Italy	EUR	10,000,000	50%
Steril Piemonte S.r.l.	Turin – Italy	EUR	1,000,000	50%
AMG S.r.l.	Busca (Cuneo) – Italy	EUR	100,000	50%
Finanza & Progeম S.p.A.	Vicenza – Italy	EUR	550,000	50%
Iniziaঞve Produমve Piemontesi S.r.l.	Turin – Italy	EUR	2,500,000	37.63%
Piemonte Servizi Sanitari S.c.r.l.	Turin – Italy	EUR	10,000	30%(*)
Saniservice Sh.p.k.	Tirana – Albania	LEK	2,745,600	30%
Brixia S.r.l.	Milan – Italy	EUR	10,000	23%
Tecnoconsulঞng S.r.l.	Scandicci (Florence) – Italy	EUR	10,000	33%

(*) The 15.05% indirect shareholding held through Iniziaࢼve Produve Piemontesi S.r.l. should be added to this.

INTERIM REPORT

This consolidated half-year financial report as at 30 June 2024 was prepared in compliance with the Internaঞonal Financial Reporঞng Standards (hereina[er "IFRS" or "Internaঞonal Accounঞng Standards") endorsed by the European Commission, in force as at 30 June 2024, and was dra[ed pursuant to Art. 154-ter of Italian Legislaঞve Decree no. 58 of 24 February 1998 and in compliance with CONSOB Regulaঞon no. 11971 of 14 May 1999 and subsequent amendments.

This half-year financial report includes the half-year condensed consolidated financial statements as at 30 June 2024 prepared in compliance with IAS 34 on interim financial reporঞng, as approved by Regulaঞon (EC) no. 1606/2002. In order to also allow for a beer evaluaঞon of the economic and financial performance, the following summary tables show some "Alternaঞve performance indicators", not provided by the IFRS Internaঞonal Accounঞng Standards. The footnotes of said tables indicate the calculaঞon method used and the composiঞon of these raঞos, in line with the guidelines of the European Securiঞes and Market Authority (ESMA).

Main consolidated income statement figures

The table below presents a comparison of the main consolidated income statement figures as at 30 June 2024 with the figures as at 30 June 2023 (in thousands of Euros).

(thousands of Euros)	30 June 2024	30 June 2023	Change	% change
Revenues	147,153	143,846	3,307	2.3%
EBITDA(a)	38,914	36,115	2,799
EBITDA %	26.4%	25.1%		1.3%
Operaঞng profit (EBIT)	10,671	7,363	3,308
Operaࢼng profit (EBIT) %	7.3%	5.1%		2.2%
Profit (loss)	4,179	2,882	1,297
Profit (loss) %	2.8%	2.0%		0.8%

(a) Group management has defined EBITDA as the difference between the value of sales and services and operating costs before depreciation, amortisation, write-downs, impairment and provisions.

Main consolidated statement of financial position figures

The table below presents a comparison of the main consolidated statement of financial posiঞon figures as at 30 June 2024 with the figures as at 31 December 2023 (in thousands of Euros):

(thousands of Euros)	30 June 2024	31 December 2023	Change	% change
Net operaঞng working capital(a)	5,355	(3,246)	8,601	-265.0%
Other current assets/liabiliঞes(b)	(10,358)	(11,194)	836	-7.5%
Net working capital	(5,003)	(14,440)	9,437	-65.4%
Non-current assets – medium/long-term provisions	273,854	269,683	4,171	1.5%
of which Rights of use under IFRS 16	27,693	28,246	(553)	-2.0%
Net invested capital	268,851	255,243	13,608	5.3%
Shareholders' equity (B)	140,995	138,543	2,452	1.8%
Net financial debt(d) (A)	127,856	116,700	11,156	9.6%
of which Financial liabiliࢼes under IFRS 16	30,457	31,370	(913)	-2.9%
Net invested capital(c)	268,851	255,243	13,608	5.3%
Gearing [A/(A+B)]	47.6%	45.7%
Debt/Equity (A/B)	90.7%	84.2%

(a) Net operating working capital is not an accounting measurement under the IFRSs endorsed by the European Union. The Group management has defined net operating working capital as the algebraic sum of inventories, trade receivables and trade payables.

(b) Other current assets/liabilities are calculated as the difference between other current assets, current tax receivables, current tax payables, other current financial liabilities, the other current liabilities and the current portion of the provision for risks and charges.

(c) The Group management has defined net invested capital as the sum of Shareholders' equity and net financial debt.

(d) The Group management has defined net financial debt as the sum of amounts Due to banks and other lenders net of Cash and cash equivalents and Current financial receivables.

Main consolidated cash flow figures

The table below presents a comparison between the main consolidated cash flow figures as at 30 June 2024 and as at 30 June 2023 (in thousands of Euros).

(thousands of Euros)	30 June 2024	30 June 2023	Change
Cash flow generated (absorbed) by operaঞons	22,375	21,457	918
Net cash flow generated (absorbed) by investment acঞviঞes	(29,399)	(25,109)	(4,290)
Net cash flow generated (absorbed) by financing acঞviঞes	6,451	(3,128)	9,579
Increase/(decrease) in cash and cash equivalents	(573)	(6,780)	6,207
Opening cash and cash equivalents	4,731	18,165	(13,434)
Effect of exchange rate fluctuaঞons	57	(3)	60
Closing cash and cash equivalents	4,101	11,388	(7,287)

Company information and business performance

In the first half of 2024, consolidated revenues of the Servizi Italia Group amounted to Euro 147,153 thousand, an increase of 2.3% (3.3% at constant exchange rates) compared to the first half of 2023. Please note the following as regards revenues from sales and services by sector in the comparison between the first half of 2024 and the first half of 2023:

• Revenues from wash-hire services (which in absolute terms represent 74.4% of the Group's revenues) rose from Euro 107,688 thousand in the first six months of 2023 to Euro 109,423 thousand in the same period of 2024, recording an increase of 1.6% (or 2.9% at constant exchange rates), supported both by wash-hire in Italy (+0.4%) and by a rapid recovery deriving from the price adjustment in the Turkey area (+34.6%, or +67.3% at constant exchange rates). The Italy area over the comparison period records certain customers lost in the Marche area, more than offset by excellent performance by the other Italian areas in which the Group operates.
• Revenues from linen sterilisaঞon services (Steril B) (which in absolute terms represent 6.9% of the Group's revenues) went from Euro 9,686 thousand in the first half of 2023 to Euro 10,119 thousand with an increase of 4.5%. The increase is mainly due to the release of the excess porঞon of the medical devices payback fund for Euro 833 thousand, which has a one-off effect and consequent to the rulings of the Consঞtuঞonal Court no. 139/24 and 140/24 as beer specified in the paragraph "Informaঞon on ongoing proceedings". Net of this effect, there would be a negaঞve change of Euro 400 thousand or -4.1% mainly due to contracts concluded in the Veneto area in the second half of 2023.
• Revenues from surgical instrument sterilisaঞon services (Steril C) (which in absolute terms represent 18.8% of the Group's revenues) rose from Euro 26,472 thousand in 2023 to Euro 27,611 thousand in 2024, with an increase of 4.3%, equal to Euro 1,139 thousand mainly due to higher operaঞng acঞviঞes recorded in the period in the Italy area.

The graph below shows the details of revenue by business line.

The table below shows revenues from sales and services of the Servizi Italia Group by region, broken down by geographical area, for the periods ending on 30 June 2024 and 2023:

(thousands of Euros)	30 June 2024	%	30 June 2023	%	% change	% Organic change	% Exchange rate change
Revenues - Italy	126,255	85.8%	124,363	86.5%	1.5%	1.5%	0.0%
Revenues - Turkey	5,579	3.8%	4,144	2.9%	34.6%	67.3%	-32.7%
Revenues - Brazil	15,319	10.4%	15,339	10.7%	-0.1%	0.0%	-0.2%
Sales revenues	147,153	100.0%	143,846	100.0%	2.3%	3.3%	-1.0%

Consolidated EBITDA went from Euro 36,115 thousand in the first six months of 2023 to Euro 38,914 in the same period of 2024, with an EBITDA margin growing by 130 bps, from 25.1% to 26.4% of revenues or an increase in absolute value of 7.8%. During the period, there was a decrease in the impact of costs for raw materials of 0.6%, and in absolute value of 3.7%, driven primarily by lower markeঞng of disposable material and personal protecঞve equipment. Costs for services recorded a 5.7% decrease in absolute value during the period, i.e. an improvement in the EBITDA margin of 2.7%, primarily due to the decrease with respect to the comparison period of gas costs (Euro -2,745 thousand or -2.0% relaঞve incidence) and electricity (Euro -900 thousand or -0.7% relaঞve incidence). Also note that the first half of 2023 included the benefit of the tax receivable in the Italy area of Euro 1,953 thousand, recorded under other revenues and absent in the first half of 2024. Personnel expense increased in terms of incidence on revenues (+0.7%) compared to the previous period, and were also up in absolute value (+4.6%), predominantly as a result of salary adjustments applied in the Italy area upon entry into force of the new Naঞonal Collecঞve Labour Agreement starঞng from March and December 2023 as well as June 2024. During the period, operaঞng margins decreased in the Brazil area (EBITDA margin going from 23.3% to 20.5%), partly due to the start-up phase of the sterilisaঞon plant in São Paulo and to higher personnel expense recorded during the period, while there was a significant recovery in margins in the Turkey area (EBITDA margin going from 27.7% to 33.2%) mainly due to the inflaঞonary adjustment of contract prices.

The consolidated operaঞng result (EBIT) went from Euro 7,363 thousand during the first six months of 2023 (5.1% compared to the turnover for the period) to Euro 10,671 thousand during the same

period in 2024 (7.3% compared to the revenues for the period), mainly due to the dynamics already described in the comment on the change in revenues and EBITDA; a reducঞon in depreciaঞon, amorঞsaঞon and impairment was also recorded (Euro -509 thousand or -0.8% in terms of relaঞve incidence).

Financial management showed an increase in financial expenses of Euro 1,682 thousand compared to the same period of the previous year, mainly due to the sharp increase in interest rates applied by the interbank system in the Eurozone and interest rates in the Turkey area.

Taxes for the period are negaঞve for Euro 1,397 thousand, with an incidence on the pre-tax result of 25.1% and mainly concern current taxes for the period.

Therefore, the consolidated interim financial statements as at 30 June 2024 closed with a net profit of Euro 4,179 thousand compared to the net profit of Euro 2,882 thousand for the same period of 2023.

Transactions with parent companies and associates

Servizi Italia S.p.A.'s transacঞons with subsidiaries, associates, jointly-controlled companies and parent companies mainly relate to: (i) dealings associated with commercial service agreements; (ii) financial dealings, represented by loans. These transacঞons are described in detail in the explanatory notes to the Financial Statements, in secঞon 8.

It should also be noted that, following the Regulaঞon adopted by Consob with Resoluঞon no. 17221 of 12 March 2010, as amended, on 24 November 2010 the Board of Directors approved, and subsequently updated, most recently on 25 June 2021, the Regulaঞon for Related Party Transacঞons, published on the company's website.

Information on treasury shares and/or shareholdings in parent companies

As at 30 June 2024, the company held 2,650,739 treasury shares, equal to 8.33% of the share capital, as a result of the purchases and sales made on the market regulated and managed by Borsa Italiana. On 5 August 2024, the Company announced that up unঞl 2 August 2024 it had acquired 2,666,452 treasury shares on the market regulated and managed by Borsa Italiana, equal to 8.38% of the share capital.

Significant events and transactions

On 27 March 2024, the Board of Directors of Servizi Italia approved the merger by incorporaঞon of the wholly-owned subsidiary Ekolav S.r.l., operaঞng on the Italian market in the linen wash-hire sector for healthcare and social welfare faciliঞes. This merger is part of a corporate simplificaঞon and reorganisaঞon process launched by the merging enঞty with the aim of pursuing greater producঞon synergies – in consideraঞon of commercial prospects and with a view to harmonising and opঞmising customer service – as well as containment of overheads. The merger deed was signed on 10 June 2024 and will take effect with respect to third parঞes on the legal effecঞve date on 1 July 2024.

On 22 April 2024, the ordinary session of the Shareholders' Meeঞng:

approved the financial statements of the Parent Company closed as at 31 December 2023;

• approved the distribuঞon to Shareholders of an ordinary single dividend, gross of the legal withholdings, equal to Euro 0.03 for the shares in circulaঞon, with the exclusion of the treasury shares in the porolio, for a maximum amount of Euro 954,283.53;
• resolved the authorisaঞon to purchase and dispose of treasury shares, as proposed by the Board of Directors. The resoluঞon authorised the purchase of a maximum of 6,361,890 ordinary shares with nominal value of Euro 1.00 each, corresponding to one-fi[h of the Company's share capital (taking into account the shares already held by the Company) for a period 18 months from the meeঞng date, while the duraঞon of the authorisaঞon for disposal of the treasury shares has no ঞme limits;
• approved the remuneraঞon policy of Servizi Italia S.p.A.;
• appointed the independent auditors PriceWaterhouseCoopers S.p.A. for the statutory audit of the accounts for the nine-year period 2024-2032, approving the related resoluঞon proposal formulated by the Board of Directors, which matches the first preference contained in the reasoned Recommendaঞon of the Board of Statutory Auditors;
• resolved the renewal of the Board of Directors for the three-year period 2024-2026, also determining the relaঞve remuneraঞon. All the members of the Board of Directors, with the excepঞon of Director Antonio Arisঞde Mastrangelo, were taken from the list submied by the majority Shareholder Aurum S.p.A., holder of a stake of approximately 62.42% of the share capital, which received votes in favour of approximately 91.88% of the shares represented at the Shareholders' Meeঞng; Director Antonio Arisঞde Mastrangelo was taken from the list submied by the minority Shareholder Everest S.r.l., holder of a 5.03% stake of the share capital.

On 22 April 2024, the Board of Directors of Servizi Italia S.p.A. assigned management powers to an Execuঞve Commiee, composed of Roberto Olivi (Chairman of the Board of Directors and of the Execuঞve Commiee), Ilaria Eugeniani (Director, appointed Deputy Chair of the Board of Directors and of the Execuঞve Commiee) and Michele Magagna (Director), assisted by the General Manager Andrea Gozzi. Subsequently, it established the Governance and Related Parঞes Commiee, responsible for remuneraঞon, appointments, control and risks and transacঞons with related parঞes, composed of Benedea Pinna as Chair (Independent Director), Roberta Labanঞ (Independent Director) and Umberto Zuliani (Non-execuঞve Director). Lastly, the Board appointed Director Benedea Pinna as Lead Independent Director and the Chair Roberto Olivi as Director in charge of the Internal Control and Risk Management System.

On 15 May 2024, with reference to the preliminary contract relaঞng to the purchase by Servizi Italia S.p.A. of a business unit assigned to the decontaminaঞon and sterilisaঞon services of Steris S.p.A., for which appropriate disclosure was provided on 10 October 2023, Servizi Italia S.p.A. availed itself of the contractually agreed right of withdrawal as a result of the loss of interest in carrying out the transacঞon. The right of withdrawal does not entail any indemnity or repayment by Servizi Italia S.p.A. in favour of Steris S.p.A.

The main characterisঞcs of the awarded contracts, which have an annual contract value of more than Euro 50 thousand, are provided below:

Customer	Service provided	Duraঞon years	Contract value per year (thousands of Euros)
Comprehensive community Oltradige Bassa Atesina*	Wash-hire service for nursing homes	2	80
Municipality of Florence*	Integrated linen wash-hire service	27 months	169
Azienda Regionale per l'Innovazione e gli Acquisঞ - Lot 1*	Integrated linen wash-hire service	5	7,248
Azienda Regionale per l'Innovazione e gli Acquisঞ - Lot 2*	Integrated linen wash-hire service	5	6,936
Azienda Regionale per l'Innovazione e gli Acquisঞ - Lot 3*	Integrated linen wash-hire service	5	6,145
Azienda Regionale per l'Innovazione e gli Acquisঞ - Lot 4*	Integrated linen wash-hire service	5	6,067
ASST Spedali Civili di Brescia*	Surgical instruments sterilisaঞon and central service management	8	2,113
AO San Camillo Forlanini of Rome*	Supply of operaঞng theatre devices and Non Woven Fabric	1	1,543

* renewed

** new customer

The contracts that ended during the reference period are outlined below:

Customer	Service provided	Contract value per year (Thousands of Euros)
GESAT Scarl – Pistoia Hospital	Wash-hire	1,003
Marche Contracts – Jesi/Senigallia (former ASUR Marche Hospital units of Jesi and Senigallia)	Wash-hire	2,025
Marche Contracts – Fano Territory (former ASUR Marche Area Vasta 1)	Wash-hire	322
Marche Contracts – Fano (former Santa Croce Hospital in Fano)	Wash-hire	915

Significant events after the end of the half

On 4 July 2024, by exercising its call opঞon, Servizi Italia acquired the remaining 10.0% of the share capital of Wash Service S.r.l., company operaঞng mainly in Northern Italy in the offer of wash and hire services of flat linen, guest linen and staff clothing of hospital faciliঞes, nursing homes and reঞrement faciliঞes, thus achieving ownership of the enঞre share capital of the company. The consideraঞon for 10.0% of the share capital of Wash Service S.r.l. was equal to Euro 391 thousand. For addiঞonal informaঞon, see the appropriate press release.

Business outlook

The results achieved by the Group in the first half of 2024 conঞnue with the excellent performance of the 2023 financial year. Consolidaঞon of the customer porolio, careful management of operaঞons and the posiঞve trend in energy commodity prices contributed posiঞvely to the results achieved both in absolute and relaঞve terms. More incisive than in the comparison period was certainly the cost of money resulঞng from the interest rates applied by the interbank system, an element that is not directly controllable through management leverage but a fundamental variable that is constantly monitored in order to ensure stable financial evoluঞon of the business in the upcoming future. In the medium-term strategy, the Group expects an organic consolidaঞon of its leadership posiঞon in the Italian and foreign market and a conঞnuous search for opঞmisaঞon and efficiencies. Although in a geopoliঞcal context that is difficult to interpret and subject to high volaঞlity with regard to fundamentals, with a trend in interest rates that is hopefully decreasing, although in

the medium term, the Group will conঞnue to work to achieve objecঞves and respect the commitments assumed, maintaining a solid capital posiঞon through an adequate financial balance and a good credit raঞng with banking insঞtuঞons.

Derivatives

As at 30 June 2024, the Group does not have any derivaঞve financial instrument management policies. Some companies not wholly-owned and therefore not consolidated on a line-by-line basis have taken out derivaঞve financial instruments to hedge the risk of fluctuaঞons in interest rates on loans taken out as part of project financing, given the significant amount of financial commitments undertaken and the over ten-year duraঞon of the same. The economic and financial effects of such derivaঞves are incorporated into the valuaঞons of equity investments in the companies that hold them.

Risk management information

The Group has developed a model based on an integrated and adequate risk management and internal control system. All main risks arising from the "core business" were idenঞfied, measured and managed, using the process of analysis of the risks according to the principles of the new COSO-ERM framework (Commiee of Sponsoring Organizaঞon of the Treadway Commission) - (Enterprise Risk Management):

• governance and risk culture;
• strategy and definition of risk targets;
• risk analysis;
• risk information, communication and reporting;
• monitoring of the performance of the risk model.

The ERM Framework supports the correct achievement of company objecঞves and consists of five interrelated components, which interact with the mission, vision and core values and determine the performance of the enঞre organisaঞon.

The model adopted by the Group is aimed at ensuring the conঞnuity of the organizaঞon and the adequacy of its processes, acঞviঞes and performance in terms of:

1. Business objecঞves:

2. achievement of objectives set within company strategies;

3. effective and efficient use of organisational resources.

2. Governance objecঞves:

• ensuring the reliability, accuracy, trustworthiness and timeliness of financial reporting;
• preservation of the company assets;
• compliance with laws, regulations, contracts, ethical and company rules;
• protection of ethical and social responsibilities;
• sustainable success.

The Board of Directors, through the Director in charge of the Internal Control and Risk Management System and the Head of Internal Audit, has implemented special processes to idenঞfy the responsibiliঞes for the control of risks, so as to ensure the soundness and the conঞnuity of the business in the long term. To this end, an internal control system has been set up to monitor the risks associated with the acঞvity. In parঞcular, this control system is reflected in the internal rules

of the Group and of the different companies subject to coordinaঞon and control through the documentaঞon of the Servizi Italian compliance program (e.g., Model 231/01, Code of Ethics, Servizi Italia Compliance Program consisঞng of group policies inspired by law, recommendaঞons and internaঞonal best pracঞces, code of conducts, procedures, rules and formats which provide prevenঞve supervision to sensiঞve processes in terms of offence issues). The internal risk control system of the Servizi Italia Group is divided into three levels:

• 1. first level: the operaঞng units idenঞfy, assess, monitor, miঞgate and report the risks deriving from the ordinary business acঞvity, ensuring that operaঞons are in line with the risk limits and targets assigned;
• 1. second level: the company funcঞons involved in the controls (such as the risk management, legal and compliance funcঞons), arranged in relaঞon to the company's size, sector, complexity and risk profile, aimed at monitoring and managing typical corporate risks (strategic, operaঞonal, compliance, financial and reporঞng);
• 1. third level: Internal Audiঞng, which reports directly to the Board of Directors also with the contribuঞon of the Local Unit Representaঞves, for the subsidiaries of strategic significance –, assesses the suitability of the overall internal control and risk management system to ensure the effecঞveness and efficiency of processes, the safeguarding of company assets, the reliability and integrity of accounঞng and management informaঞon, compliance with internal and external regulaঞons and management instrucঞons.

For the performance of its acঞviঞes, the Internal Auditor submits to the Board of Directors a plan of the acঞviঞes, which describes the audits planned in line with the risks associated to the acঞviঞes aimed at achievement of the business objecঞves.The results of the acঞviঞes carried out, on a halfyearly basis, are brought to the aenঞon of the Director in charge of the Internal Control and Risk Management System, of the Control and Risks Commiee, of the Board of Directors (also through the Control and Risks Commiee) and of the Board of Statutory Auditors; the criঞcal elements found during the controls are, on the other hand, promptly reported to the competent company structures for the implementaঞon of any improvement acঞon.

The Servizi Italia Group, aware of its mission and corporate policy, pursues the objecঞve of promptly monitoring the risks idenঞfied in all acঞviঞes, which is an essenঞal condiঞon to preserve the trust of stakeholders and to ensure the sustainability of the business over ঞme, so contribuঞng to the sustainable success of the Company and Servizi Italia Group.

The risk control process is common to all control funcঞons, in line with reference best pracঞces; the different types of risks are defined in the "Guidelines of the SCIGR", and the relaঞve Corporate Risks Map, which is subject to periodic updaঞng at least once a year.

The Guidelines and the Risks Map represent the Group's Risk Appeঞte Framework (hereina[er, in brief, also "RAF"), i.e., the key instrument with which the Board of Directors defines the propensity to risk, tolerance thresholds, sustainable risk limits, risk governance policies and the framework of related organisaঞonal processes. The RAF, the Risks Map and, therefore, the internal regulaঞons on risk management also consider aspects related to the management of the risks of a social, environmental and economic nature (ESG).

Information on ongoing proceedings

The Parent Company has proceedings in progress before the Court of Modena for the administrative liability of legal entities – pursuant to Italian Legislative Decree no. 231/2001 – for an alleged violation of Article 319 of the Italian Criminal Code, with reference to the awarding of a tender issued by AOU Policlinico di Modena for a nine-year "Global Service" contract, through resolution of 19.12.2008 to the RTI (temporary joint consortium) established by Coopservice Soc.Coop.p.A., in its capacity as lead contractor, and by other companies including Servizi Italia S.p.A., Padana Everest S.r.l. and Lavanderia Industriale ZBM S.p.A. (companies subsequently merged by incorporation into Servizi Italia S.p.A.) as principals. It should be noted that, at the hearing on 16 February 2021, the Court of Modena ruled in favour of the Chairman, Mr. Roberto Olivi and Messrs. Enea Righi and Luciano Facchini, former directors with powers of representation of Servizi Italia, ruling that the case must not proceed by reason of statute of limitations with consequent extinguishment of the alleged offence. Therefore, the proceedings continue exclusively against the entities so as to initiate the investigation also in terms of the non-existence of the predicate offence already declared statute barred in relation to the predicate offences referred to in Italian Legislative Decree no. 231 of 2001. In this context, on 28 May 2024, a hearing for discussion was scheduled, then deferred on its own motion to 4 March 2025. On 29 April 2024, the Public Prosecutor filed written conclusions, on which basis Servizi Italia requested acquittal because the fact did not exist.

In January 2019, Servizi Italia was awarded, as principal, the RTI (temporary grouping of companies) formed by Coopservice Soc. Coop p.a., Servizi Italia S.p.A. and others, in relaঞon to the contract for the assignment of the management of integrated support services to the person at the University Hospital of Bologna for a period of six years and for an annual value, limited to Servizi Italia's share, equal to approximately Euro 4 million. On 20 August 2020, the Council of State unexpectedly overturned the previous rulings of the Regional Administraঞve Court and of the Council of State which, by cancelling the request for suspension by the plainঞff, had allowed the temporary grouping of companies of which Servizi Italia is a party to take over during the month of February 2020 in the provision of the service following the award. In view of this last ruling, acঞng in the name and on behalf of the above menঞoned temporary grouping of companies, pursuant to Arঞcle 395 of the Italian Code of Civil Procedure and to Arঞcle 106 of the Italian Code of Administraঞve Procedure, the parent company unsuccessfully proposed an appeal for revocaঞon before the Council of State. To date, an appeal is pending before the Supreme Court of Cassaঞon for lack of jurisdicঞon.

Since December 2022, Servizi Italia S.p.A. iniঞated a judicial protecঞon acঞon – sঞll pending – before the Lazio Regional Administraঞve Court, challenging: i) the Ministerial Decree of 6 July 2022 adopted by the Minister of Health, in agreement with the Minister of Economy and Finance, which cerঞfied the exceeding of expenditure limits on medical devices at naঞonal and regional level for the years 2015, 2016, 2017 and 2018; ii) the Ministerial Decree of 6 October 2022, adopted by the Minister of Health, in agreement with the Minister of Economy and Finance, who adopted the guidelines in preparaঞon for the issue of regional and provincial Payback measures, as well as iii) the consequenঞal Payback measures which some Regions, to varying degrees, have imposed on Servizi Italia with respect to the remediaঞon of expenditure limits. It should be noted that one of the main issues raised before the competent judicial body relates to the breach of the terms established pursuant to of Arঞcle 9-ter, paragraph 8, of Italian Law Decree 78/2015, according to which expenditure overruns should be ascertained and declared by 30 September of each year, hence: i) the illegiঞmacy of the Italian Decree of 6 July 2022, which established that expenditure ceilings had been exceeded, with macroscopic delays compared to the said deadlines and ii) the concomitant unconsঞtuঞonality of the acts and rules that allowed the retroacঞve applicaঞon of the Payback measure; this is Arঞcle 9-ter of Italian Law Decree 78/2015 as amended by Arঞcle 1, paragraph 557 of Italian Law no. 145 of 30

December 2018, in conjuncঞon with Arঞcle 18 of Italian Law Decree no. 115 of 9 August 2022 ( "Aiuঞ-bis Decree" - Aid-bis Decree), converted with Italian Law no. 221 of 21 September 2022. It should also be noted that on 24 November 2023, the Lazio Regional Administraঞve Court, in a similar ruling, raised an objecঞon before the Consঞtuঞonal Court to the consঞtuঞonal illegiঞmacy of Arঞcle 9-ter of Italian Law Decree no. 78, by contrast with Arঞcles 3, 23, 41 and 117 of the Italian Consঞtuঞon and consequently ordered the suspension of procedures.

Similarly, with an appeal filed on 31 July 2023, the Campania Region promoted issues of consঞtuঞonal legiঞmacy of Arঞcle 8, paragraphs 1, 2, 3 and 6, of Italian Law Decree no. 34 (Urgent measures to support households and businesses for the purchase of electricity and natural gas, as well as in relaঞon to health and tax compliance), converted, with amendments, into Italian Law no. 56, with reference to Arঞcles 3, 5, 32, 77, 97, 117, third and fourth paragraphs, 118, 119 and 120 of the Italian Consঞtuঞon. These instrucঞons were challenged with regard to the part that sets up a provision of Euro 1,085,000 thousand to cover the exceeding, for the years 2015, 2016, 2017 and 2018, of the spending limits imposed on the regions and autonomous provinces for the purchase of medical devices (Arঞcle 8, paragraph 1), that establishes the allocaঞon criteria (Arঞcle 8, paragraph 2), that establishes a facilitated mechanism for companies idenঞfied as suppliers obliged to contribute to the selement of the overspend which, with regard to the regional or provincial measures relaঞng to this idenঞficaঞon, have not iniঞated disputes or have abandoned them (Arঞcle 8, paragraph 3), and that in this case promotes the access of these companies to credit (Arঞcle 8, paragraph 6).

Both excepঞons were the subject of a ruling by the Consঞtuঞonal Court.

And so in parঞcular: with ruling no. 140/2024, filed on 22 July 2024 for the purposes of publicaঞon in the Official Gazee, the Council declared unfounded, with regard to the 2015-2018 four year period, the issues of consঞtuঞonality of Arঞcle 9-ter of Italian Law Decree 78/2015 converted with amendments into Italian Law 125/2015; with ruling no. 139/2024, made on 19 June 2024 and filed on 22 July 2024 for the purposes of publicaঞon in the Official Gazee, on the other hand, the Council declared the consঞtuঞonal illegiঞmacy of Arঞcle 8, paragraph 3, of Italian Law Decree no. 34 dated 30 March 2023, converted with amendments into Italian Law no. 56 dated 30 May 2023, in the part in which it does not extend to all companies supplying medical devices the reducঞon to 48% of the quota determined by the regional and provincial measures pursuant to Arঞcle 9-ter, paragraph 9-bis, of Italian Law Decree no. 78 of 19 June 2015, converted with amendments into the law of 6 August 2015, with consequent lapse of the procedures and terms idenঞfied by the same Arঞcle 8, paragraph 3, of the Italian Law Decree of 30 March 2023 as converted.

At present, therefore, a risk profile related to the 2015-2018 four-year period emerges exclusively limited to a charge not exceeding 48% of the request for compensaঞon communicated by the respecঞve Regions for the period referred to above. In light of these consideraঞons, the Parent Company decided to write-off the porঞon pertaining to the aforemenঞoned period considered at present to be in excess of a total amount of Euro 833 thousand.

Despite what has been indicated above, given the complexity of the issues raised, which do not perfectly coincide with the scope of the rulings of the Council, it should be emphasised that it is not possible at the moment to make forecasts regarding the outcome of the judicial protecঞon. For the esঞmate concerning the Payback issue, please refer to the Provisions for risks and charges secঞon.

The Group, having carried out the necessary verificaঞons and assessed with the support of its legal consultants, on the one hand, the soundness of its defensive arguments and, on the other, the uncertainty and unreliability of the current esঞmate of possible economic damage, has not yet decided to make provisions in the financial statements, without prejudice to what has been specified above with regard to medical devices payback.

Risk Factors

In order to minimise different types of risks to which it is exposed, the Group has adopted ঞme scales and control methods that allow company management to monitor risks and to appropriately inform the Director in charge of the internal control system and (also through him) the Board of Directors.

Without prejudice to the principle of conঞnuous monitoring and considering the characterisঞcs of the Group's acঞviঞes, a review of the risk assessment indicates that the Group has been able to achieve the desired miঞgaঞon of the primary operaঞonal, financial, strategic and compliance risks idenঞfied by taking the planned organisaঞonal and operaঞng measures and implemenঞng and documenঞng control points within company processes.

The Servizi Italia Group's acঞviঞes are exposed to various risk types, including interest rate fluctuaঞons and credit, liquidity and cash flow risks. To minimise such risks, the Group has adopted ঞmescales and control methods which allow the company management to monitor risks and inform the Board of Directors so that it may approve all transacঞons involving a commitment by the Group with respect to third-party lenders.

Other information

Servizi Italia S.p.A., pursuant to Arঞcle 3 of the Consob Resoluঞon no. 18079 of 20 January 2012, decided to join the out-put regime set forth in Arঞcles 70, paragraph 8, and 71, paragraph 1-bis, of the Consob Regulaঞons n. 11971/99 (as amended), availing itself of the right to derogate from the obligaঞon to publish the informaঞon documents as set forth in annex 3B of the above menঞoned Consob Regulaঞons when carrying out significant merging, demerging, share capital increases through contribuঞons in kind, acquisiঞons and transfer operaঞons.

With reference to the changes made to the regulatory framework in 2016, Servizi Italia S.p.A. publishes the addiঞonal periodical informaঞon, meeঞng the obligaঞons specified for the issuers listed in the Euronext STAR Milan segment in Art. 2.2.3, par. 3, of the Regulaঞons for the Markets organised and managed by Borsa Italiana S.p.A. and in the noঞce no. 7578 issued by Borsa Italiana on 21 April 2016.

Human resources and industrial relations

The Servizi Italia Group's total employees, including those of the consolidated companies, were as follows as at 30 June 2024:

Company	Execuঞves	Middle managers	White-collar staff	Blue collar staff	Total
Servizi Italia S.p.A.	11	28	193	1,596	1,828
San Marঞno 2000 S.c.r.l.	-	-	-	-	-
Steritek S.p.A.	-	-	30	-	30
Wash Service S.r.l.	-	-	7	39	46
Ekolav S.r.l.	-	-	8	64	72
SRI Empreendimentos e Parঞcipações Ltd	-	-	-	-	-
Lavsim Higienização Têxঞl S.A.	1	4	63	501	569
Maxlav Lavanderia Especializada S.A.	-	-	38	384	422
Vida Lavanderias Especializada S.A.	-	-	-	5	5
Aqualav Serviços De Higienização Ltda	-	-	18	238	256
Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret	2	-	4	148	154
Ltd Şirkeঞ
Ergülteks Temizlik Teksঞl Ltd. Sঞ.	1	-	2	98	101
Ankateks Tur. Teks. Tem.Sanve TIC. A.s. – Olimpos
Laundry Teks.Tem. Hizm. Ve Tur. San. Tic. LTD.Sঞ IS	-	-	-	5	5
Ortakligi
TOTAL	15	32	363	3,078	3,488

In the first part of 2024, the Parent Company set the renewal of the 2nd level agreement as one of its prioriঞes in the management of industrial relaঞons. In light of the changed market situaঞon and the reduced uncertainঞes on energy costs, the Parent Company would have assessed a renewal on a two-year or three-year basis, however, at the request of the trade unions, it was agreed to wait unঞl 2025, in order to renew not only the economic part of the agreement, but also the regulatory one. The company accepted the trade union requests and therefore the negoঞaঞon concerned the definiঞon of a transiঞonal agreement, only for the year 2024, in line with what had already occurred last year. The negoঞaঞons ended on 8 May with the signature of the agreement at the Naঞonal Coordinaঞon meeঞng, which was held at the Castellina headquarters. The agreement does not envisage substanঞal changes with respect to the previous one, in its structure and in its indicators, apart from the numerical tables updated to the current year.

With reference to the exercise of the right of withdrawal by Servizi Italia with regard to the acquisiঞon of the business unit responsible for decontaminaঞon and sterilisaঞon services of Steris S.p.A., it was not necessary to pursue further trade union issues. In fact, it should be noted that in relaঞon to the aforemenঞoned transacঞon, the procedure and the relaঞve agreement had been iniঞated pursuant to Arঞcle 47 of Italian Law 428/90.

With reference to the merger of the company Ekolav S.r.l., to which reference is made in the paragraph Significant events and transacࢼons, the HR structure managed the procedure envisaged by Arঞcle 47 of Italian Law 428/90. From the point of view of operaঞons at the producঞon sites, threeyear agreements on flexibility and breaks were signed at the Castellina and Florence plants.

Training and development

The first half of 2024 saw the launch of several significant training and/or development courses with two specific objecঞves. The first series of iniঞaঞves aimed at increasing or updaঞng the technical knowledge or skills of the human capital of the structure, in parঞcular: in the operaঞons area, an educaঞon and training program was acঞvated, aimed at creaঞng new maintenance personnel roles internally by using internal operaঞng resources. The second purpose is that relaঞng to organisaঞonal and personal development. In this area the beginning of 2024 saw the launch of two major projects: "Skills Assessment" and "Cybersecurity Awareness" in order to increase internal awareness on the subject of IT security, acঞng proacঞvely in the event of possible aacks.

Servizi Italia and the financial markets

From 22 June 2009, the Servizi Italia (SRI.MI) share has been traded on the Euronext STAR Milan segment. The main share and stock exchange data as at 30 June 2024 are disclosed below along with share volume and price (in euro) trends:

Share and stock exchange data	30 June 2024
No. of shares making up the share capital	31,809,451
Price at IPO: 4 April 2007	Euro 8.50
Price as at 30 June 2024	Euro 1.82
Maximum price during the period	Euro 1.94
Minimum price during the period	Euro 1.50
Average price during the period	Euro 1.75
Volumes traded during the period	6,420,303
Average volumes during the period	50,955

During the reference period, on 22 May 2024 the investor relaঞons team parঞcipated to the "TP ICAP Midcap Conference 2024" in Paris and remained available for individual and group calls with anyone interested in obtaining informaঞon and expanding their acঞviঞes and business.

In addiঞon to the research study by specialist Intermonte SIM, the Group also appointed Tp Icap Midcap Partners (Appointed rep by Louis Capital Markets UK, LLP).

The Chairman of the Board of Directors (Roberto Olivi)

HALF-YEAR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF THE SERVIZI ITALIA GROUP AS AT 30 JUNE 2024

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(thousands of Euros)	Note	30 June	of which with related	31 December	of which with related
		2024	parࢼes (Note 8)	2023	parࢼes (Note 8)
ASSETS
Non-current assets
Property, plant and equipment	6.1	169,608	17,635	166,473	19,343
Intangible assets	6.2	2,918	-	3,057	-
Goodwill	6.3	60,597	-	61,438	-
Equity-accounted investments	6.4	35,770	-	33,023	-
Equity investments in other companies		2,938	-	2,938	-
Financial receivables		7,170	6,629	6,037	5,100
Deferred tax assets	6.5	11,828	-	12,467	-
Other assets		2,150	-	2,531	-
Total non-current assets		292,979		287,964
Current assets
Inventories		8,796	-	9,244	-
Trade receivables	6.6	77,151	10,467	75,141	8,232
Current tax receivables		2,216	-	2,018	-
Financial receivables		6,103	4,242	8,156	6,943
Other assets	6.7	11,037	-	11,753	-
Cash and cash equivalents		4,101	-	4,731	-
Total current assets		109,404		111,043
TOTAL ASSETS		402,383		399,007
SHAREHOLDERS' EQUITY AND LIABILITIES
Group shareholders' equity
Share capital		29,159	-	29,302	-
Other reserves and retained earnings		104,132	-	100,801	-
Profit (loss) for the period		3,998	-	5,463	-
Total shareholders' equity a'ributable to shareholders of the parent company		137,289		135,566
Total shareholders' equity a'ributable to non-controlling interests		3,706		2,977
TOTAL SHAREHOLDERS' EQUITY	6.8	140,995		138,543
LIABILITIES
Non-current liabiliঞes
Due to banks and other lenders	6.9	74,321	17,498	66,385	19,484
Deferred tax liabiliঞes	6.10	3,285	-	2,933	-
Employee benefits	6.11	7,358	-	7,389	-
Provisions for risks and charges	6.12	8,012	-	7,494	-
Other financial liabiliঞes	6.14	470	-	465	-
Total non-current liabiliঞes		93,446		84,666
Current liabiliঞes
Due to banks and other lenders	6.9	63,739	2,201	63,202	2,340
Trade payables	6.13	80,592	7,040	87,631	8,152
Current tax payables Employee benefits		1,151 -	- -	626 -	- -
Other financial liabiliঞes	6.14	404	-	416	-
Provisions for risks and charges	6.12	837	-	1,783	-
Other payables	6.15	21,219	-	22,140	-
Total current liabiliঞes		167,942		175,798
TOTAL LIABILITIES		261,388		260,464
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		402,383		399,007

CONSOLIDATED INCOME STATEMENT

(thousands of Euros)	Note	30 June 2024	of which with related parࢼes (Note 8)	30 June 2023	of which with related parࢼes (Note 8)
Sales revenues	7.1	147,153	8,358	143,846	8,153
Other income	7.2	3,002	333	4,760	384
Raw materials and consumables	7.3	(13,514)	(80)	(14,028)	(84)
Costs for services	7.4	(47,884)	(9,846)	(50,759)	(9,640)
Personnel expense	7.5	(48,976)	(45)	(46,806)	(18)
Other costs		(867)	(46)	(898)	(46)
Depreciaঞon/amorঞsaঞon, impairment and provisions	7.6	(28,243)	(1,080)	(28,752)	(1,113)
Operaঞng profit		10,671		7,363
Financial income	7.7	731	366	570	348
Financial expenses	7.7	(6,922)	(613)	(5,240)	(567)
Income/(expense) from equity investments		177	-	356	-
Revaluaঞon/impairment of equity-accounted investments	6.4	919	-	(134)	-
Profit before tax		5,576		2,915
Current and deferred taxes	7.8	(1,397)		(33)
Profit (loss) for the period		4,179		2,882
of which: Porঞon a'ributable to shareholders of the parent company		3,998		2,661
Porঞon a'ributable to non-controlling interests		181		221
Basic earnings/(losses) per share (in Euros)	7.9	0.14		0.09
Diluted earnings/(losses) per share (in Euros)	7.9	0.14		0.09

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(thousands of Euros)	Note	30 June 2024	30 June 2023
Profit (loss) for the period		4,179	2,882
Other comprehensive income that will not be reclassified to the Income Statement
Actuarial gains (losses) on defined benefit plans		-	-
Income taxes on other comprehensive income		-	-
Other comprehensive income that may be reclassified to the Income Statement
Gains (losses) from conversion of foreign financial statements	6.8	(3,951)	(676)
Porঞon of comprehensive income of the equity-accounted investments	6.4	121	84
Income taxes on other comprehensive income		-	-
Total other comprehensive income a[er taxes		(3,830)	(760)
Total comprehensive income for the period		349	2,122
of which: Porঞon a'ributable to shareholders of the parent company		362	2,705
Porঞon a'ributable to non-controlling interests		(13)	(583)

CONSOLIDATED CASH FLOW STATEMENT

(thousands of Euros)	Note	as at 30 June 2024	of which with related parࢼes (Note 8)	as at 30 June 2023	of which with related parࢼes (Note 8)
Cash flow generated (absorbed) by operaࢼons
Profit (loss) before tax		5,576	-	2,915	-
Payment of current taxes		(109)	-	(41)	-
Amorঞsaঞon/depreciaঞon	7.6	27,986	-	28,302	-
Impairment and provisions	7.6	257	-	450	-
(Revaluaঞon)/impairment of investments	6.4	(1,096)	-	(222)	-
Gains/losses on disposal		(437)	-	(238)	-
Interest income and expense accrued	7.7	6,192	-	4,669	-
Interest income collected		52	-	401	-
Interest expense paid		(4,777)	-	(4,249)	-
Interest paid on liabiliঞes for leases		(1,028)	(613)	(943)	(567)
Provisions for employee benefits	6.11	422	-	420	-
		33,038		31,464
(Increase)/decrease in inventories		212		(51)
(Increase)/decrease in trade receivables	6.6	(5,278)	(2,235)	(12,002)	(3,061)
Increase/(decrease) in trade payables	6.13	(4,190)	(1,112)	1,621	(45)
Increase/(decrease) in other assets and liabiliঞes		(969)	-	841	-
Se'lement of employee benefits	6.11	(438)	-	(416)	-
Cash flow generated (absorbed) by operaঞons		22,375		21,457
Net cash flow generated (absorbed) by investment acࢼviࢼes in:
Intangible assets	6.2	(312)	-	(238)	-
Property, plant and equipment	6.1	(30,346)	-	(24,602)	-
Dividends received		409	-	37	-
(Acquisiঞons)/Disposals		-	-	-	-
Equity investments	6.4	850	-	(306)	-
Net cash flow generated (absorbed) by investment acঞviঞes		(29,399)		(25,109)
Cash flow generated (absorbed) by financing acࢼviࢼes in:
Financial receivables		21	(30)	(365)	149
Dividends paid	6.8	(888)	-	(12)	-
Net (purchase)/sales of treasury shares	6.8	(247)	-	(71)	-
Share capital increase (payments by minority shareholders)		-	-	-	-
Current due to banks and other lenders	6.9	2,858	-	(4,607)	-
Non-current due to banks and other lenders	6.9	6,645	-	3,815	-
Reimbursement of liabiliঞes for leases		(1,938)	(940)	(1,888)	(974)
Cash flow generated (absorbed) by financing acঞviঞes		6,451		(3,128)
(Increase)/decrease in cash and cash equivalents		(573)		(6,780)
Opening cash and cash equivalents		4,731		18,165
Effect of exchange rate fluctuaঞons		57		(3)
Closing cash and cash equivalents		4,101		11,388
Increase/(decrease) in cash and cash equivalents		(573)		(6,780)

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY

(thousands of Euros)	Share capital	Share premium reserve	Legal reserve	Retained earnings	Translaঞon reserve	Profit (loss) for the period	Reserves and profit (loss) of non controllin g interests	Total Shareholders' Equity
Balance as at 1 January 2023	29,432	49,439	6,618	75,205	(34,057)	3,833	3,003	133,473
Allocaঞon of profit from the previous year	-	-	-	3,833	-	(3,833)	-	-
Distribuঞon of dividends	-	-	-	-	-	-	(12)	(12)
Treasury share transacঞons	(53)	(18)	-	-	-	-	-	(71)
High inflaঞon effect in Turkey	-	-	-	506	-	-	415	921
Profit (loss) for the period	-	-	-	-	-	2,661	221	2,882
Other components of comprehensive income	-	-	-	(84)	128	-	(804)	(760)
Balance as at 30 June 2023	29,379	49,421	6,618	79,460	(33,929)	2,661	2,823	136,433

(thousands of Euros)	Share capital	Share premium reserve	Legal reserve	Retained earnings	Translaঞo n reserve	Profit (loss) for the period	Reserves and profit (loss) of non controlling interests	Total Shareholders' Equity
Balance as at 1 January 2024	29,302	49,400	6,618	79,849	(35,067)	5,463	2,977	138,543
Allocaঞon of profit from the previous year	-	-	-	4,587	-	(4,587)	-	-
Distribuঞon of dividends	-	-	-	-	-	(876)	(12)	(888)
Treasury share transacঞons	(143)	(104)	-	-	-	-	-	(247)
High inflaঞon effect in Turkey	-	-	-	2,484	-	-	754	3,238
Profit (loss) for the period	-	-	-	-	-	3,998	181	4,179
Other components of comprehensive income	-	-	-	121	(3,757)	-	(194)	(3,830)
Balance as at 30 June 2024	29,159	49,296	6,618	87,041	(38,824)	3,998	3,706	140,995

EXPLANATORY NOTES

1 Introduction

These half-year condensed consolidated financial statements as at 30 June 2024 of the Servizi Italia Group, subject to limited review, have been prepared in compliance with Art. 154 ter of Italian Legislaঞve Decree 58/1999 as amended as well as the Internaঞonal Financial Reporঞng Standards (IFRS) issued by the Internaঞonal Accounঞng Standards Board (IASB), on the basis of the text published in the Official Journal of the European Communiঞes (OJEC). These half-year financial statements have been prepared in "condensed" form as established by IAS 34, and therefore do not include all the informaঞon normally included in the annual financial statements and must therefore be read together with the Group's consolidated financial statements as at 31 December 2023.

The half-year condensed consolidated financial statements include the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial posiঞon, the statement of changes in consolidated shareholders' equity, the consolidated cash flow statement and the notes, in line with the requirements of IFRS.

The half-year condensed consolidated financial statements were dra[ed in compliance with the IFRS issued by the Internaঞonal Accounঞng Standards Board and approved by the European Union at the ঞme of dra[ing of these financial statements. IFRS mean also all revised internaঞonal accounঞng standards (IAS) and all interpretaঞons of the Internaঞonal Interpretaঞons Commiee (IFRIC), previously known as the Standing Interpretaঞons Commiee (SIC).

IFRS accounting standards, amendments and interpretations applied as from 1 January 2024

The following IFRS accounঞng standards, amendments and interpretaঞons were applied for the first ঞme by the Group starঞng on 1 January 2024:

• On 23 January 2020, the IASB published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current" and on 31 October 2022 it published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". The purpose of these amendments is to clarify how to classify payables and other short or long-term liabilities. In addition, the amendments also improve the information that entities must provide when their right to defer the settlement of a liability for at least 12 months is subject to compliance with specific parameters (i.e. covenants).
• On 22 September 2022, the IASB published an amendment called "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to assess the lease liability deriving from a sale & leaseback transaction so as not to recognise an income or a loss that refers to the withheld right of use.
• On 25 May 2023, the IASB published an amendment called "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional information on reverse factoring agreements that allow users of financial statements to assess how financial agreements with

suppliers may affect the entity's liabilities and cash flows and to understand the effect of such agreements on the entity's exposure to liquidity risk.

The adopঞon of these amendments did not impact the consolidated financial statements of the Group.

IFRS accounঞng standards, amendments and interpretaঞons sঞll not approved by the European Union.

At the reference date of this document, the European Union competent bodies had not yet concluded the approval process needed for the adopঞon of the amendments and standards described below.

• On 30 May 2024, the IASB published the document "Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7". The document clarifies some problemaঞc aspects that were idenঞfied by the post-implementaঞon review of IFRS 9, including the accounঞng treatment of financial assets whose returns vary upon achievement of ESG objecঞves (i.e. green bonds). In parঞcular, the amendments aim to:
  • o Clarify the classificaঞon of financial assets with variable returns and linked to environmental, social and corporate governance (ESG) objecঞves and the criteria to be used for the assessment of the SPPI test;
  • o determine that the date of selement of the liabiliঞes through electronic payment systems is that on which the liabiliঞes is seled. However, an enঞty is permied to adopt an accounঞng policy to allow for the eliminaঞon of a financial liability before delivering liquidity on the selement date in the presence of certain specific condiঞons.

With these amendments, the IASB has also introduced addiঞonal reporঞng requirements with regard, in parঞcular, to investments in equity instruments designated at FVOCI. The amendments will apply for financial statements for periods starঞng on or a[er 1 January 2026. Directors do not expect any significant effect on the consolidated financial statements of the Group when this amendment is adopted.

• On 9 April 2024, the IASB published a new standard IFRS 18 Presentaࢼon and Disclosure in Financial Statements which will replace IAS 1 Presentaࢼon of Financial Statements. The new standard aims to improve the presentaঞon of the main financial statements and introduces important changes with reference to the income statement. In parঞcular, the new standard requires to:
  • o Classify revenues and costs into three new categories (operaঞng secঞon, investment secঞon and financial secঞon), in addiঞon to the taxes and disconঞnued operaঞons categories already present in the income statement;
  • o Present two new sub-totals, the operaঞng result and the result before interest and taxes (i.e. EBIT).

The new standard also:

• o Requires more informaঞon on the performance indicators defined by management;
• o introduces new criteria for combining and unbundling informaঞon; and, introduces some changes to the cash flow statement, including the requirement to use the operaঞng result as a starঞng point for the presentaঞon of the cash flow statement prepared with the indirect method and the eliminaঞon of some classificaঞon opঞons of some currently exisঞng items (such as, for example, interest paid, interest collected, dividends paid and dividends collected).

The new standard will come into effect as from 1 January 2027, though early applicaঞon is permied. The directors are currently assessing the possible effects of the introducঞon of this new standard on the Group's consolidated financial statements.

• On 15 August 2023, the IASB published an amendment called "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". This document requires entities to apply a methodology to be applied consistently in order to verify whether one currency can be converted into another and, when this is not possible, how to determine the exchange rate to be used and the information to be provided in the explanatory notes. The amendment will apply as from 1 January 2025, though early adoption is allowed. Directors do not expect any significant effect on the consolidated financial statements of the Group when this amendment is adopted.
• On 9 May 2024, the IASB published a new standard "IFRS 19 Subsidiaries without Public Accountability: Disclosures". The new standard introduces some simplifications with reference to the disclosures required by other IAS-IFRS standards. This standard can be applied by an entity that meets the following main criteria:
  • o It is a subsidiary;
  • o It has not issued equity or debt instruments listed on a market and is not in the process of issuing them;
  • o It has a parent company that prepares consolidated financial statements in compliance with IFRS.

The new standard will come into effect as from 1 January 2027, though early application is permitted. Directors do not expect any significant effect on the consolidated financial statements of the Group when this amendment is adopted.

1.1 Core Business

The Group primarily works in the domesঞc market as well as in the State of São Paulo (Brazil), Albania, India, Morocco, and Turkey, in supplying integrated rental, washing and sterilisaঞon services for texঞles and surgical instruments to social/welfare and public and private hospital faciliঞes. In parঞcular, the services provided by the Group consist of:

• Wash-hire: this includes (i) planning and provision of integrated hire, reconditioning (disinfection, washing, finishing and packaging) and logistics (pick-up and distribution to usage centres) services for textile items, mattresses and accessories, (ii) rental and washing of high visibility "118" emergency service items and (iii) logistics, transport and management of hospital linen storage facilities;
• Linen sterilisation (Steril B): this includes the planning and rental of sterile medical devices for operating theatres (linens for operating theatres and scrubs) packed in kits for the operating theatre, in cotton or in re-usable technical fabric, as well as personal protection equipment (gloves, masks);
• Sterilisation of surgical instruments (Steril C): this includes (i) the design and supply of washing, packaging and sterilisation services for surgical instruments (owned or rented) as well as accessories for operating theatres, (ii) the design, installation and renovation of sterilisation centres and, (iii) system validation and control services for sterilisation processes and surgical instrument washing systems.

2 The Company as part of a group

Servizi Italia S.p.A. is a subsidiary of the Coopservice S.Coop.p.A. group, with registered offices in Reggio Emilia, which holds a controlling shareholding via the Company Aurum S.p.A., which therefore indirectly controls the Servizi Italia Group.

Servizi Italia S.p.A. is not subject to the management and co-ordinaঞon acঞviঞes of either the direct parent company Aurum S.p.A. or the indirect parent company Coopservice S.Coop.p.A. In fact, Servizi Italia S.p.A. operates under condiঞons of corporate and entrepreneurial autonomy in commercial dealings with its customers and suppliers and independently defines its industrial plans and/or budgets. Furthermore, Servizi Italia S.p.A., in compliance with the provisions of Italian Law no. 262 dated 28 December 2005, has adopted all the necessary measures which permit it not to be subject to management and co-ordinaঞon acঞviঞes.

3 Consolidation principles and accounting standards

3.1 Consolidation principles

The half-year condensed consolidated financial statements as at 30 June 2024 include the financial statements of Servizi Italia S.p.A. and of the companies over which it exercises direct or indirect control, beginning on the date on which it is acquired and unঞl the date on which it is no longer held. Investments in associates and jointly controlled companies (joint ventures) are measured using the equity method, while jointly controlled acঞviঞes (joint operaঞons) are recorded by recognising the porঞon of the assets and liabiliঞes, costs and revenues that pertain thereto, directly into the financial statements of the company that is party to the agreements.

The financial statements consolidated line-by-line were dra[ed as at 30 June 2024, are those appropriately prepared and approved by the administraঞve bodies, and have been adjusted as required to bring them into line with the accounঞng standards of Servizi Italia S.p.A.

The consolidaঞon criteria are the same as those applied in the Group's consolidated financial statements as at 31 December 2023.

3.2 Scope of consolidation

The scope of consolidaঞon includes the following subsidiaries (consolidated line-by-line):

Percenta Percentag Share ge of e of capital investme investmen (thousands) Registered Offices Currency as at 30 nt t June as at 30 as at 31 2024 June December 2024 2023 San Marঞno 2000 S.c.r.l. Genoa – Italy EUR 10 60.0% 60.0% Steritek S.p.A. Malagnino (Cremona) – Italy EUR 134 95.0% 95.0% Ankateks Turizm İnşaat Teksঞl Temizleme Ankara – Turkey TRY 85,000 55.0% 55.0% Sanayi ve Ticaret Ltd Şirkeঞ Ergülteks Temizlik Teksঞl Ltd. Sঞ.* Smyrna – Turkey TRY 1,700 57.5% 57.5% Ankateks Tur. Teks. Tem.Sanve TIC. A.s. – Olimpos Laundry Teks.Tem. Hizm. Ve Tur. Antalya – Turkey TRY 10 51.0% 51.0% San. Tic. LTD.Sঞ IS Ortakligi SRI Empreendimentos e Parঞcipacoes LTDA São Paulo – Brazil BRL 217,758 100.0% 100.0% Lavsim Higienização Têxঞl S.A. São Roque, State of São Paulo – Brazil BRL 32,330 100.0% 100.0%
	Maxlav Lavanderia Especializada S.A.*	Jaguariúna, State of São Paulo – Brazil	BRL	2,825	100.0%	100.0%
Vida Lavanderias Especializada S.A.* São Roque, State of São Paulo – Brazil BRL 3,600 100.0% 100.0%

Aqualav Serviços De Higienização Ltda*	Vila Idalina, Poá, State of São Paulo – Brazil	BRL	15,400	100.0%	100.0%
Ekolav S.r.l.	Lastra a Signa (Florence) – Italy	EUR	100	100.0%	100.0%
Wash Service S.r.l.	Castellina di Soragna (Parma) – Italy	EUR	10	90.0%	90.0%

* Held through SRI Empreendimentos e Parঞcipações Ltda

** Held through Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ

Investments in associates and jointly-controlled companies are measured using the equity method.

(thousands)	Registered Offices	Currency	Share capital as at 30 June 2024	Percentage of investment as at 30 June 2024	Percentage of investment as at 31 December 2023
Arezzo Servizi S.c.r.l.	Arezzo – Italy	EUR	10	50%	50%
PSIS S.r.l.	Padua – Italy	EUR	10,000	50%	50%
Steril Piemonte S.c.r.l.	Turin – Italy	EUR	1,000	50%	50%
AMG S.r.l.	Busca (Cuneo) – Italy	EUR	100	50%	50%
Iniziaঞve Produমve Piemontesi S.r.l.	Turin – Italy	EUR	2,500	37.63%	37.63%
Piemonte Servizi Sanitari S.c.r.l.	Turin – Italy	EUR	10	30%(*)	30%(*)
SAS Sterilizasyon Servisleri A. Ş.	Istanbul – Turkey	TRY	36,553	51%	51%
Shubhram Hospital Soluঞons Private Ltd.	New Delhi – India	INR	362,219	51%	51%
Finanza & Progeম S.p.A.	Vicenza – Italy	EUR	550	50%	50%
Brixia S.r.l.	Milan – Italy	EUR	10	23%	23%
Saniservice Sh.p.k.	Tirana – Albania	LEK	2,746	30%	30%
Tecnoconsulঞng S.r.l.	Scandicci (Florence) – Italy	EUR	10	33%	33%
Servizi Sanitari Integraঞ Marocco S.a.r.l.	Casablanca – Morocco	MAD	122	51%	51%

(*) The 15.05% indirect shareholding held through Iniziaঞve Produমve Piemontesi S.r.l. should be added to this.

For the consolidaঞon of the companies preparing financial statements in a currency other than the funcঞonal currency used in the consolidated financial statements of the Servizi Italia Group, the following Euro conversion rates were used (it should be noted that, by virtue of the applicaঞon of the IAS 29 internaঞonal standard with regard to hyperinflaঞon, the exchange rate used for the conversion of the economic values of the Turkish companies is the final exchange rate as at 30 June 2024):

Currency	Average exchange rate as at 30 June 2024	Average exchange rate as at 30 June 2023	Final exchange rate as at 30 June 2024	Final exchange rate as at 31 Dec. 2023	Final exchange rate as at 30 June 2023
Brazilian Real (R\$)	5.4922	5.4827	5.8915	5.3618	5.2788
Turkish Lira (TL)	34.2364	21.5662	35.1868	32.6531	28.3193
Albanese Lek (LEK)	102.2890	112.8250	100.3700	103.7900	106.4900
Indian Rupee (INR)	89.9862	88.8443	89.2495	91.9045	89.2065
Moroccan Dirham (MAD)	10.8325	11.0208	10.6550	10.9280	10.7560

3.3 Accounting standards and basis of preparation

The accounঞng standards and basis of preparaঞon, reported in the introducঞon to the Notes to the financial statements, are the same as those used to prepare the consolidated financial statements as at 31 December 2023, which should be referred to for a descripঞon, with the excepঞon of the IFRS standards, amendments and interpretaঞons applied for the first ঞme as at 1 January 2024 and described, together with the effects on the half-year condensed consolidated financial statements, in the introducঞon to these Notes.

The half-year condensed consolidated financial statements as at 30 June 2024 were dra[ed on the basis of the going concern assumpঞon.

4 Risk management policy

The Servizi Italia Group's financial risk management is carried out centrally within the framework of specific organisaঞonal direcঞves governing the management of financial risks and the control of all transacঞons relevant to the composiঞon of financial and/or trade assets and liabiliঞes.

The Servizi Italia Group's acঞviঞes are exposed to various risk types, including interest rate fluctuaঞons and credit, liquidity, cash flow risks and currency-type risks.

To minimise such risks, the Servizi Italia Group has adopted ঞmescales and control methods, which allow the company management to monitor this risk and inform the Board of Directors so that it may approve all transacঞons involving a commitment by the Company with respect to third parঞes.

The principal internal and external risks to which the Group is exposed are described in the directors' report accompanying the separate financial statements as at 31 December 2023. A descripঞon of market risks and the relaঞve hedging policies is provided below.

4.1 Type of risks hedged

Exchange rate risk

The investments in Brazil, Turkey, India, Albania and Morocco have posiঞoned the Group in an internaঞonal context, exposing it to exchange rate risk generated by fluctuaঞons in the Euro/Real, Euro/Turkish Lira, Euro/Indian Rupee, Euro/Albanian Lek and Euro/Moroccan Dirham exchange rates.

The assessment of exchange rate risk weights the risk of currency fluctuaঞons with the size and ঞme distribuঞon of the cash flows expressed in foreign currency and with the cost of possible hedging transacঞons. The assessments, taking into account the fact that no capital repatriaঞon is expected from abroad in the short term, have led to the decision not to hedge against currency risk.

Credit risk

The credit risk is constantly monitored by means of periodic processing of past due situaঞons which are subject to the analysis of the Group's financial structure. The Group is also equipped with recovery procedures for doubul receivables and avails itself of the assistance of legal advisors in the event of disputes being established.

In light of the fact that customers are predominantly public companies, default risk is deemed low. However, these customers have extended payment ঞmes which depend on loans received by the local health units, the hospitals and the Regions. Currently, the average days sales outstanding are 96.

Trade receivables shown in the financial statements are adjusted for expected losses according to a model that refers to an expected loss for the enঞre life of trade receivables in compliance with the simplified approach envisaged by IFRS 9. The expected loss rates applied are substanঞally in line with those indicated in the consolidated financial statements as at 31 December 2023.

Liquidity risk

To correctly manage liquidity risk, an adequate level of cash and cash equivalents must be maintained. In light of the predominantly public nature of the group's customers and the average collecঞon ঞmes,

cash and cash equivalents are obtained primarily from accounts receivable financing and, to a lesser extent, from medium-term, unsecured credit lines. The Group also uses factoring without recourse.

Interest rate risk

The Group's net financial debt primarily comprises short-term payables which, as at 30 June 2024, represent approximately 53.8% of its debt, at an average annual rate, in relaঞon to the short-term payable to banks, of around 6.41%. With regard to the global financial crisis, the Group is monitoring the market and assessing the appropriateness of taking out rate hedging transacঞons in order to limit the negaঞve impacts of changes in interest rates on the consolidated income statement. The table below demonstrates the effect that would be generated by a 0.5% increase or decrease in rates (in thousands of Euros).

(thousands of Euros)	0.5% rate increase		0.5% rate decrease
	30 June 2024	31 December 2023	30 June 2024	31 December 2023
Financial receivables	+26	+53	(26)	(53)
Financial payables	+307	+450	(307)	(450)
Factoring of receivables	+196	+439	(196)	(439)

4.2 Fair value information

Financial assets and financial liabiliঞes are recognised at amorঞsed cost. Shareholdings in other companies relate to investments of a strategic and producঞon nature, all of which are in fact held in relaঞon to the management of contracts or licences.

These equity investments usually cannot be freely transferred to third parঞes, since they are subject to rules and agreements that in pracঞce prevent their free circulaঞon. The equity investments in other companies are recognised at fair value if there is an acঞve market for the securiঞes representaঞve of these equity investments. The profits or the losses deriving from changes in the fair value are recognised directly in the income statement. If an acঞve market is not available, which is the case for all equity investments held by the Company as at 30 June 2024, equity investments in other companies are recognised at the cost of purchase or set-up, reduced for any impairment or capital refund, as best esঞmate of the fair value.

The Group does not hold financial instruments measured at fair value with an acঞve market. Therefore, no classificaঞon based on input quality is provided.

5 Segment reporting

The Servizi Italia Group's segment reporঞng is organised as follows:

• Wash-hire: this includes (i) planning and provision of integrated hire, reconditioning (disinfection, washing, finishing and packaging) and logistics (pick-up and distribution to usage centres) services for textile items, mattresses and accessories, (ii) rental and washing of high visibility "118" emergency service items and (iii) logistics, transport and management of hospital linen storage facilities;
• Linen sterilisation (Steril B): this includes the planning and rental of sterile medical devices for operating theatres (linens for operating theatres and scrubs) packed in kits for the operating theatre, in cotton or in re-usable technical fabric, as well as personal protection equipment (gloves, masks);

Sterilisation of surgical instruments (Steril C): this includes (i) the design and supply of washing, packaging and sterilisation services for surgical instruments (owned or rented) as well as accessories for operating theatres, (ii) the design, installation and renovation of sterilisation centres and, (iii) system validation and control services for sterilisation processes and surgical instrument washing systems.

In terms of geographical areas, please note that the Servizi Italia Group:

• operates in Italian territory, with the exception of the Brazilian companies Lavsim Higienização Têxtil S.A., Maxlav Lavanderia Especializada S.A., Vida Lavanderias Especializada S.A. and Aqualav Serviços De Higienização Ltda held through the subsidiary SRI Empreendimentos e Participações Ltda, as well as the Turkish companies Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi, Ergülteks Temizlik Tekstil Ltd. Sti. and Ankateks Tur. Teks. Tem.Sanve TIC. A.s. – Olimpos Laundry Teks.Tem. Hizm. Ve Tur. San. Tic. LTD.Sti IS Ortakligi.
• mainly offers the same types of services in each geographical area in Italy and abroad.

As a result, informaঞon is not presented by geographical area, with the excepঞon of revenues, which are broken down by region in paragraph 7.1.

The Servizi Italia Group considers the breakdown by business area to be more significant. The core business areas are idenঞfied based on how the Group is managed, how management responsibiliঞes are aributed and how business reporঞng is analysed by the management.

(thousands of Euros)	Half-year ended as at 30 June 2024
	Wash-hire	Steril B (Linen Sterilisaঞon)	Steril C (Surgical Instruments Sterilisaঞon)	Total
Revenues from sales and services	109,423	10,119	27,611	147,153
Other income	1,737	122	1,143	3,002
Raw materials and materials	(8,548)	(2,613)	(2,353)	(13,514)
Costs for services	(39,078)	(1,672)	(7,134)	(47,884)
Personnel expense	(34,853)	(3,086)	(11,037)	(48,976)
Other costs	(714)	(26)	(127)	(867)
EBITDA(a)	27,967	2,844	8,103	38,914
Depreciaঞon, amorঞsaঞon and impairment	(24,660)	(1,092)	(2,491)	(28,243)
Operaঞng profit (EBIT)	3,307	1,752	5,612	10,671
Financial income and expenses and income and expenses from equity investments in other companies				(5,095)
Profit before tax				5,576
Tax				(1,397)
Profit (loss) for the period				4,179
Of which porঞon a'ributable to the shareholders of the parent company				3,998
Of which porঞon a'ributable to non-controlling interests				181

(a) EBITDA is not an accounঞng measurement under the IFRSs endorsed by the European Union. Group management has defined EBITDA as the difference between the value of sales and services and operaঞng costs before depreciaঞon, amorঞsaঞon, writedowns, impairment and provisions.

(thousands of Euros)	Half-year ended as at 30 June 2023
	Wash hire	Steril B (Linen Sterilisaঞon)	Steril C (Surgical Instruments Sterilisaঞon)	Total
Revenues from sales and services	107,688	9,686	26,472	143,846
Other income	3,555	191	1,014	4,760
Raw materials and materials	(8,853)	(2,893)	(2,282)	(14,028)
Costs for services	(41,841)	(1,931)	(6,987)	(50,759)
Personnel expense	(33,339)	(3,172)	(10,295)	(46,806)
Other costs	(746)	(33)	(119)	(898)
EBITDA (a)	26,464	1,848	7,803	36,115
Depreciaঞon, amorঞsaঞon and impairment	(25,326)	(1,226)	(2,200)	(28,752)
Operaঞng profit (EBIT)	1,138	622	5,603	7,363
Financial income and expenses and income and expenses from equity investments in other companies				(4,448)
Profit before tax				2,915
Tax				(33)
Profit (loss) for the period				2,882
Of which porঞon a'ributable to shareholders of the parent				2,661
Of which porঞon a'ributable to non-controlling interests				221

(a) EBITDA is not an accounting measurement under the IFRSs endorsed by the European Union. Group management has defined EBITDA as the difference between the value of sales and services and operating costs before depreciation, amortisation, writedowns, impairment and provisions.

Revenues from wash-hire services (which in absolute terms represent 74.4% of the Group's revenues) rose from Euro 107,688 thousand in the first six months of 2023 to Euro 109,423 thousand in the same period of 2024, recording an increase of 1.6% (or 2.9% at constant exchange rates), supported both by wash-hire in Italy (+0.4%) and by a rapid recovery deriving from the price adjustment in the Turkey area (+34.6%, or +67.3% at constant exchange rates). The Italy area over the comparison period records certain customers lost in the Marche area, more than offset by excellent performance by the other Italian areas in which the Group operates.

Revenues from linen sterilisation services (Steril B) (which in absolute terms represent 6.9% of the Group's revenues) went from Euro 9,686 thousand in the first half of 2023 to Euro 10,119 thousand with an increase of 4.5%. The increase is mainly due to the release of the excess portion of the medical devices payback fund for Euro 833 thousand, which has a one-off effect and consequent to the rulings of the Constitutional Court no. 139/24 and 140/24 as better specified in the paragraph "Information on ongoing proceedings". Net of this effect, there would be a negative change of Euro 400 thousand or -4.1% mainly due to contracts concluded in the Veneto area in the second half of 2023.

Revenues from surgical instrument sterilisaঞon services (Steril C) (which in absolute terms represent 18.8% of the Group's revenues) rose from Euro 26,472 thousand in 2023 to Euro 27,611 thousand in 2024, with an increase of 4.3%, equal to Euro 1,139 thousand mainly due to higher operaঞng acঞviঞes recorded in the period in the Italy area.

The graph below shows the breakdown of revenue by business line.

The informaঞon in the tables below represents the assets directly aributable to investments by business segment.

(thousands of Euros)	30 June 2024
	Wash hire	Steril B (Linen Sterilisaঞon)	Steril C (Surgical Instruments Sterilisaঞon)	Total
Total revenues from sales and services	109,423	10,119	27,611	147,153
Investments in property, plant and equipment and intangible assets	27,594	1,273	4,201	33,068
Depreciaঞon of property, plant and equipment and amorঞsaঞon of intangible assets	24,480	1,072	2,434	27,986
Net book value of property, plant and equipment and intangible assets	142,421	3,966	26,138	172,525

(thousands of Euros)	30 June 2023
	Wash-hire	Steril B (Linen Sterilisaঞon)	Steril C (Surgical Instruments Sterilisaঞon)	Total
Total revenues from sales and services	107,688	9,686	26,472	143,846
Investments in property, plant and equipment and intangible assets	25,210	1,033	2,863	29,105
Depreciaঞon of property, plant and equipment and amorঞsaঞon of intangible assets	25,002	1,192	2,108	28,302
Net book value of property, plant and equipment and intangible assets	143,931	3,393	21,821	169,145

5.1 Seasonality

The Group's economic and financial performance is not affected by parঞcular significant cyclical or seasonal trends.

6 Statement of Financial Position

6.1 Property, plant and equipment

Changes in property, plant and equipment and the associated accumulated depreciaঞon are shown in the table below.

(thousands of Euros)	Land and buildings	Plant and machinery	Returnable assets	Equipment	Other assets	Assets under construcঞon	Total
Historical cost	45,311	164,047	36,177	73,287	175,886	11,984	506,692
Accumulated depreciaঞon	(16,616)	(121,511)	(29,002)	(61,645)	(111,445)	-	(340,219)
Balance as at 1 January 2024	28,695	42,536	7,175	11,642	64,441	11,984	166,473
Translaঞon differences	(222)	(961)	(115)	(92)	(1,176)	(411)	(2,977)
High inflaঞon effect in Turkey	228	801	-	-	99	-	1,128
Increases	786	1,604	576	2,701	23,195	3,873	32,735
Decreases	-	(14)	-	(2)	(149)	(38)	(203)
Depreciaঞon	(1,787)	(3,266)	(753)	(2,317)	(19,425)	-	(27,548)
Impairments (reinstatements)	-	-	-	-	-	-	-
Reclassificaঞons	-	1,954	1,190	271	264	(3,679)	-
Other	-	-	-	-	-	-	-
Balance as at 30 June 2024	27,700	42,654	8,073	12,203	67,249	11,729	169,608
Historical cost	46,000	165,884	37,452	75,793	196,208	11,729	533,066
Accumulated depreciaঞon	(18,300)	(123,230)	(29,379)	(63,590)	(128,959)	-	(363,458)
Balance as at 30 June 2024	27,700	42,654	8,073	12,203	67,249	11,729	169,608

The item Translaঞon differences refers to the changes in exchange rates for the Brazilian companies (SIR Empreendimentos e Parঞcipações L.t.d.a., Lavsim Higienização Têxঞl S.A., Maxlav Lavanderia Especializada S.A., Vida Lavanderias Especializada S.A., Aqualav Serviços De Higienização Ltda) and for the Turkish companies (Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ, Ergülteks Temizlik Teksঞl Ltd. Sঞ.).

The item High inflaঞon effect in Turkey refers to the applicaঞon of IAS 29 to the historical cost of property, plant and equipment of the company Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ and Ergülteks Temizlik Teksঞl Ltd. Sঞ.

The increases in the first half of 2024 mainly refer to investments in linen for Euro 21,830 thousand included in the item Other assets of which Euro 16,716 thousand relaঞng to the Italy area and Euro 5,114 thousand relaঞng to the Brazil area. These investments aim at a more efficient management of the warehouse, both in the case of a parঞal renewal of contracts and on occasion of the first supply for contracts acquired during the period in quesঞon.

The item Land and buildings recorded an increase of Euro 786 thousand mainly aributable to the change in the value of the right of use asset for the inflaঞonary adjustment of lease contracts following the applicaঞon of the IFRS 16 accounঞng standard.

The item Plant and Equipment recorded an increase of Euro 1,604 thousand, mainly relaঞng to the plants in the Italy area for Euro 1,238 thousand, in the Brazil area for Euro 88 thousand and in the Turkish area for Euro 274 thousand.

The item Industrial and commercial equipment shows increases of Euro 2,701 thousand, of which Euro 1,001 thousand relaঞng to the purchase of surgical instruments for the iniঞal supply for new contracts acquired and Euro 1,700 thousand for the purchase of industrial equipment.

The increases in Assets under construction amounting to Euro 3,873 thousand relate to investment not yet operational, as well as works on third-party assets still in progress. At regional level, they are broken down for Euro 3,288 thousand in the Italy area, mainly relating to the wash-hire division, and for Euro 584 thousand in the Brazil area.

Reclassificaঞons show decreases of Euro 3,679 thousand mainly relaঞng to the entry into operaঞon of new plants and machinery at the Parent Company, as well as works on assets realised by the Parent Company.

The item "Assets under construcঞon" refers to the investments under way at the end of the first half and is composed as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Sterilisaঞon centre investments	4,583	4,258
Laundering facility investments	2,201	1,581
Investments on contracts	785	1,868
Investments at producঞon sites in Brazil	4,148	4,128
Investments at producঞon sites in Turkey	12	149
Total	11,729	11,984

The item Assets under construction shows an increase in the item Sterilisation centre investments mainly attributable to new investments made for the launch of new tenders related to sterilisation. Assets under construction in the Brazil area mainly refer to investments for the sterilisation plant located in the São Paulo area.

6.2 Intangible assets

This item changed as follows:

(thousands of Euros)	Trademarks, so[ware, patents and intellectual property rights	Customer contracts porolio	Other intangible assets	Assets under construcঞon and payments on account	Total
Historical cost	8,828	8,367	525	310	18,030
Accumulated amorঞsaঞon	(7,808)	(6,640)	(525)	-	(14,973)
Balance as at 1 January 2024	1,020	1,727	-	310	3,057
Translaঞon differences	(13)	-	-	-	(13)
High inflaঞon effect in Turkey	(1)	-	-	-	(1)
Increases	218	-	-	115	333
Decreases	(1)	-	-	(20)	(21)
Amorঞsaঞon	(251)	(186)	-	-	(437)
Impairments (reinstatements)	-	-	-	-	-
Reclassificaঞons	96	-	-	(96)	-
Balance as at 30 June 2024	1,068	1,541	-	309	2,918
Historical cost	9,080	8,367	478	309	18,234
Accumulated amorঞsaঞon	(8,012)	(6,826)	(478)	-	(15,316)
Balance as at 30 June 2024	1,068	1,541	-	309	2,918

The increases in the item Trademarks, so[ware, patents and intellectual property rights are mainly aributable to the purchase by the Parent Company of so[ware licences. In addiঞon, please note the increase in Assets under construcঞon and payments on account mainly relaঞng to the purchase of

new so[ware licences by the Parent Company. The item High inflaঞon effect in Turkey refers to the applicaঞon of IAS 29 to the historical cost of property, plant and equipment of the company Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ and Ergülteks Temizlik Teksঞl Ltd. Sঞ.

6.3 Goodwill

Goodwill is allocated to the Servizi Italia Group's cash generaঞng units idenঞfied on the basis of the geographical area, which reflects the areas of operaঞon of the companies acquired over the years. Goodwill is allocated by geographical area as follows:

(thousands of Euros)	as at 31 December 2023	Increases/ (Decreases)	Translaঞon differences	as at 30 June 2024
CGU Italy	51,668	-	-	51,668
CGU Turkey	2,098	-	(151)	1,947
CGU Brazil	7,672	-	(690)	6,982
Total	61,438	-	(841)	60,597

The change in the period is aributable to exchange differences from the translaঞon into Euros of goodwill arising from acquisiঞons in Brazil and Turkey.

With the excepঞon of the porঞon of goodwill relaঞng to the CGU Steritek (surgical instrument sterilisaঞon operaঞng segment), all other idenঞfied goodwill is included in the wash-hire operaঞng segment, as defined for the purposes of the sector reporঞng required by IFRS 8.

At the date of approval of these half-year consolidated financial statements, no facts or events have taken place that may indicate an impairment loss in the goodwill recognised and tested for impairment at the end of 2023.

6.4 Equity-accounted investments

The value of equity-accounted investments changed as follows:

(thousands of Euros)	Change as at 30 June 2024
	1 January 2024	Increases/(de creases)	High inflaঞon effect	OCI changes	Reinstatement /(impairment)	Translaঞon difference	30 June 2024
Associates and jointly controlled companies
Saniservice Sh.p.k.	1,105	-	-	-	193	41	1,339
Finanza & Progeম S.p.A.	19,049	-	-	121	548	-	19,718
Brixia S.r.l.	2,298	-	-	-	(48)	-	2,250
Arezzo Servizi S.c.r.l.	5	-	-	-	-	-	5
PSIS S.r.l.	4,891	-	-	-	326	-	5,217
Steril Piemonte S.r.l.	537	-	-	-	7	-	544
AMG S.r.l.	2,616	(232)	-	-	150	-	2,534
Iniziaঞve Produমve Piemontesi S.r.l.	1,335	-	-	-	110	-	1,445
Piemonte Servizi Sanitari S.c.r.l.	3	-	-	-	-	-	3
Servizi Sanitari Integraঞ Marocco S.a.r.l.	129	-	-	-	(2)	4	131
SAS Sterilizasyon Servisleri A.Ş.	640	-	1,649	-	(5)	(139)	2,145
Shubhram Hospital Soluঞons Private Limited	(4,581)	-	-	-	(381)	(140)	(5,102)
Tecnoconsulঞng S.r.l.	415	-	-	-	24	-	439
Total	28,442	(232)	1,649	121	922	(234)	30,668
of which provisions for risk and charges	(4,581)	-	-	-	(381)	(140)	(5,102)
of which equity investments in associates and jointly controlled companies	33,023	(232)	1,649	121	1,303	(94)	35,770

Reinstatements and impairments include the porঞons of profits and losses recorded by the investees in the half.

The item OCI changes, posiঞve for Euro 121 thousand, corresponds the porঞon aributable to the Servizi Italia Group, within the scope of applicaঞon of the equity method, of the change in fair value of hedging derivaঞves subscribed by the company Ospedal Grando S.p.A. (subsidiary of associate company Finanza e Progeম S.p.A.).

There is also a posiঞve effect of Euro 1,649 thousand on the company SAS Sterilizasyon Servisleri A.Ş. due to high inflaঞon in Turkey.

With reference to the equity investment in Shubhram Hospital Soluঞons Private Limited, in consideraঞon of the commitments made with the local Indian partner, the porঞon of the losses exceeding the value of the equity investment was booked to the item Provisions for risks and charges.

6.5 Deferred tax assets

This item changed as follows:

(thousands of Euros)	Lease contracts	Property, plant and equipment	Employee benefits	Previous tax losses/"ACE" carried forward	Other costs with deferred deducঞbility	Total
Deferred taxes as at 1 January 2024	566	476	-	8,850	2,575	12,467
Changes recognised in the income statement	27	31	-	(1,021)	564	(399)
Changes recognised in equity	-	-	-	-	-	-
Changes recognised in other comprehensive income	(14)	-	-	(14)	(212)	(240)
Deferred taxes as at 30 June 2024	579	507	-	7,815	2,927	11,828

There are no deferred tax assets not recognised in the financial statements as the temporary differences generated were deemed recoverable in future years. The item Previous tax losses mainly refers to the tax losses generated by the Parent Company, certain Italian subsidiaries and the Turkish company Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ.

Deferred tax assets relaঞng to lease contracts include Euro 392 thousand relaঞng to the effects deriving from the applicaঞon of IFRS 16 to acঞve contracts sঞpulated before 1 January 2019 (date of first applicaঞon of IFRS 16) by the Parent Company. As required by IAS 12, the gross effect of deferred tax assets and liabiliঞes is shown in the table below:

(thousands of Euros)	Details of allocaঞon - IFRS 16 deferred taxaঞon
Deferred tax assets as at 31 December 2023	3,863
Deferred tax liabiliঞes as at 31 December 2023	(3,483)
Net deferred tax assets as at 31 December 2023	380
Deferred taxes assets as at 30 June 2024	3,407
Deferred tax liabiliঞes as at 30 June 2024	(3,015)
Net deferred tax assets as at 30 June 2024	392

6.6 Trade receivables

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Due from third parঞes	67,772	67,585
Due from associates	8,209	6,487
Due from parent company	227	246
Due from companies under the control of the parent companies	943	823
Total	77,151	75,141

Due from third parties

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Due from customers	73,728	73,429
Bad debt provision	(5,956)	(5,844)
Total	67,772	67,585

The increase in the item Trade receivables is aributable to the increase in the level of sales revenues and a slight increase in the average collecঞon days.

During the half, the Servizi Italia Group carried out some transacঞons involving the disposal of the receivables described below:

• it transferred without recourse to Credemfactor S.p.A. Euro 14,910 thousand in trade receivables for a consideration of Euro 14,733 thousand;
• it transferred without recourse to Unicredit Factoring S.p.A. Euro 11,707 thousand in trade receivables for a consideration of Euro 11,582 thousand;
• it transferred without recourse to IFITALIA Euro 4,887 thousand in trade receivables for a consideration of Euro 4,841 thousand;
• it transferred without recourse to BPER Factor S.p.A. Euro 7,553 thousand in trade receivables for a consideration of Euro 7,485 thousand;
• it transferred without recourse to Banca Ifis S.p.A. Euro 137 thousand in trade receivables for a consideration of Euro 135 thousand.

The bad debt provision changed as follows:

(thousands of Euros)	Total
Balance as at 31 December 2023	5,844
Uঞlisaঞons	-
Adjustments	-
Provisions	112
Balance as at 30 June 2024	5,956

6.7 Other current assets

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Due from others	8,138	9,885
Prepayments	2,647	1,624
Guarantee deposits receivable	238	244
Accrued income	14	-
Total	11,037	11,753

The item Due from others is composed of the receivables of the company San Marঞno 2000 S.c.r.l. from the consorঞum company Servizi Ospedalieri S.p.A. in the amount of Euro 1,218 thousand, the VAT receivable pertaining to the Parent Company for Euro 3,833 thousand (Euro 4,558 thousand as at 31 December 2023) and, for the remaining part, mainly by advances and receivables from social security and welfare insঞtuঞons, all collectable within the year. Prepayments increased primarily as a result of rentals and insurance premiums that were recognised at the beginning of the year. The item guarantee deposits refers to energy uঞliঞes and rental contracts.

6.8 Shareholders' equity

As at 30 June 2024, the fully subscribed and paid-up share capital of Servizi Italia S.p.A. was broken down into 31,809,451 ordinary shares with a nominal amount of Euro 1 each. In the first half of 2024, the Parent Company purchased 142,987 treasury shares for Euro 247 thousand, equal to 0.45% of the share capital, with an average purchase price of Euro 1.72 per share. Following these transacঞons, as at 30 June 2024, the Parent Company held 2,650,739 treasury shares amounঞng to 8.33% of the share capital. The value of the treasury shares held as at 30 June 2024 of Euro 6,424 thousand was classified as a reducঞon in shareholders' equity. There was also a negaঞve effect of Euro 3,950 thousand on the translaঞon reserves in the equity of companies that prepare their financial statements in foreign currencies, mainly as a result of the depreciaঞon of the Brazilian Real and of the Turkish Lira, as well as the posiঞve effect of high inflaঞon in Turkey following the adopঞon of IAS 29 in the amount of Euro 3,238 thousand.

It should be noted that, although the Consolidated Shareholders' Equity of the Servizi Italia Group is higher than the share market capitalisaঞon as at 30 June 2024, it is considered recoverable in consideraঞon of the results of the impairment tests carried out as at 31 December 2023.

6.9 Due to banks and other lenders

(thousands of Euros)	as at 30 June 2024			as at 31 December 2023
	Current	Non-current	Total	Current	Non-current	Total
Due to banks	59,695	47,686	107,381	59,209	38,867	98,076
Due to other lenders	4,044	26,635	30,679	3,993	27,518	31,511
Total	63,739	74,321	138,060	63,202	66,385	129,587

The item is broken down as follows:

Due to banks

The porঞon of the payable falling due within 12 months relaঞng to the item Due to banks as at 30 June 2024 presents an increase compared to 31 December 2023 of Euro 486 thousand. The porঞon of the payable falling due beyond 12 months relaঞng to the item Due to banks as at 30 June 2024 shows an increase compared to 31 December 2023 of Euro 8,819 thousand due to the net effect of the repayment of the loan instalments due during the year and the taking out of a new loan in the period for Euro 22,400 thousand with CF+ S.p.A. The breakdown of Due to banks by maturity is provided below:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Maturity less than or equal to 6 months	48,258	48,469
Maturity between 6 and 12 months	11,437	10,740
Maturity between 1 and 5 years	47,686	38,368
More than 5 years	-	500
Total	107,381	98,076

Non-current due to banks are broken down by maturity as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Maturity between 1 to 2 years	18,180	15,862
Maturity between 2 and 5 years	29,506	22,505
More than 5 years	-	500
Total	47,686	38,867

Some medium/long-term loans are subject to financial covenants on data inferred from the consolidated financial statements at the end of the year; no obligaঞon to comply with financial covenants is envisaged as at 30 June 2024 except for the covenants in place on the loan granted by Unicredit S.p.a. which envisage half-yearly compliance with two raঞos, respecঞvely NFP/SE ≤ 2 and NFP/EBITDA ≤ 3, both met.

Due to other lenders

For the current porঞon, due to other lenders as at 30 June 2024 mainly relate to the payable of the Turkish companies, in addiঞon to financial payables relaঞng to lease contracts, represented in the financial statements according to IFRS 16, for Euro 3,861 thousand.

The non-current porঞon of the balance as at 30 June 2024 is aributable to financial payables relaঞng to lease contracts for Euro 26,596 thousand.

Due to other lenders are broken down by maturity below:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Maturity less than or equal to 6 months	1,554	2,598
Maturity between 6 and 12 months	2,490	1,395
Maturity between 1 and 5 years	13,747	13,701
More than 5 years	12,888	13,816
Total	30,679	31,511

Non-current due to other lenders are broken down by maturity as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Maturity between 1 to 2 years	3,679	3,658
Maturity between 2 and 5 years	10,068	10,044
More than 5 years	12,888	13,817
Total	26,635	27,518

6.10 Deferred tax liabilities

Deferred tax liabiliঞes are broken down below by nature of the ঞming differences that generated them:

(thousands of Euros)	Property, plant and equipment and intangible assets	Equity investments	Goodwill	Other	Inflaঞon effect in Turkey	Total
Deferred tax liabiliঞes as at 1 January 2024	280	3	1,752	-	898	2,933
Changes recognised in the income statement	100	-	16	25	75	216
Changes recognised in equity	-	-	-	-	142	142
Changes recognised in other comprehensive income	(6)	-	-	-	-	(6)
Deferred tax liabiliঞes as at 30 June 2024	374	3	1,768	25	1,115	3,285

There are no deferred taxes which have not been recognised, since the related payment is deemed unlikely.

6.11 Employee benefits

This item changed as follows:

(thousands of Euros)	Total
Iniঞal balance as at 1 January 2024	7,389
Provision	426
Financial expenses	-
Actuarial (gains)/losses	-
Transfers (to)/from other provisions	-
(Payments)	(422)
Translaঞon differences	(34)
Final balance as at 30 June 2024	7,358

6.12 Provisions for risks and charges

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Opening balance	9,277	8,483
Provisions	592	1,872
Payments/resoluঞons	(992)	(993)
Translaঞon differences	(28)	(85)
Closing balance	8,849	9,277
of which current porঞon	837	1,783
of which non-current porঞon	8,012	7,494

The item includes the provision for coverage of losses on equity investments for Euro 5,102 thousand, which refers to the equity investment in Shubhram Hospital Soluঞons Private Limited, and corresponds to the porঞon of the losses exceeding the value of the equity investment that will be covered in consideraঞon of the commitments made with the local partner for the development of business in the Indian market. It should also be noted that the provisions recognised in the period amounted to Euro 592 thousand, of which Euro 381 thousand relate to the losses aributable to the Servizi Italia Group recorded by the equity investment in Shubhram Hospital Soluঞons Private Limited, while approximately Euro 157 thousand were allocated to various items by the Parent Company. It should be noted that, as already commented in the paragraph "Informaঞon on ongoing proceedings", the Parent Company has released an amount equal to Euro 833 thousand relaঞng to the found porঞon in excess in accordance with rulings no. 139/2024 and 140/2024 of the Consঞtuঞonal Court, previously allocated to meet the selement request for Payback for medical devices for the years 2015-2018.

6.13 Trade payables

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Due to suppliers	74,779	79,631
Due to associates and jointly-controlled companies	2,605	3,298
Due to parent company	4,189	4,660
Due to companies under the control of the parent companies	19	42
Total	80,592	87,631

Trade payables decreased from Euro 87,631 thousand as at 31 December 2023 to Euro 80,592 thousand as at 30 June 2024, a decrease of Euro 7,039 thousand.

6.14 Other financial liabilities

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Payable for Steritek S.p.A. put opঞon	470	465
Payables to Wash Service S.r.l. shareholders	391	402
Deferred price Aqualav Serviços De Higienização Ltda	13	14
Total	874	881
of which non-current porঞon	470	465
of which current porঞon	404	416

The change in the item is primarily related to the capitalisaঞon of financial charges relaঞng to the discounঞng of the debt of the opঞons recorded. As already menঞoned in the paragraph "Significant events a[er the end of the half", on 4 July 2024 the Parent Company exercised the right of purchase opঞon in reference to 10% of the share capital of Wash Service S.r.l. and the related payable recognised as at 30 June 2024 was adjusted accordingly.

6.15 Other current payables

The table below provides a breakdown of other current liabiliঞes:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Deferred income and accrued expenses	764	1,372
Payables due to social security and welfare insঞtuঞons	5,178	6,072
Due to employees	12,473	10,688
Employee/professional IRPEF (personal income tax) payable	1,627	2,142
Other payables	1,177	1,866
Total	21,219	22,140

Due to employees

The item Due to employees increased compared to 31 December 2023, from Euro 10,688 thousand as at 31 December 2023 to Euro 12,473 thousand as at 30 June 2024.

Payables due to social security and welfare institutions

Payables due to social security and welfare insঞtuঞons include contribuঞons to INPS/INAIL/INPDAI (Naঞonal Social Security Insঞtuঞon/Italian Insঞtuঞon for Insurance Against Workplace Accidents/Naঞonal Welfare Insঞtute for Industrial Managerial Employees), all falling due within the year.

6.16 Net financial debt

The Group's net financial debt as at 30 June 2024, as at 31 December 2023 and as at 30 June 2023 is shown below:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023	as at 30 June 2023
Cash and cash equivalents in hand	111	59	29
Cash at bank	3,990	4,672	11,359
Cash and cash equivalents	4,101	4,731	11,388
Current financial receivables	6,103	8,156	7,149
Current due to banks and other lenders	(63,739)	(63,202)	(74,948)
of which Financial liabiliࢼes under IFRS 16	(3,861)	(3,852)	(3,684)
Current net financial debt	(57,636)	(55,046)	(67,799)
Non-current due to banks and other lenders	(74,321)	(66,385)	(68,641)
of which Financial liabiliࢼes under IFRS 16	(26,596)	(27,518)	(28,061)
Non-current net financial debt	(74,321)	(66,385)	(68,641)
Net financial debt	(127,856)	(116,700)	(125,052)

Please refer to the cash flow statement for the descripঞon of the cash flows generated by operaঞng, financing and investment acঞviঞes and the associated effects on the cash and cash equivalents. The consolidated net financial posiঞon increased from Euro 116,700 thousand as at 31 December 2023 to Euro 127,856 thousand as at 30 June 2024, a negaঞve change of Euro 11,156 thousand. The change in net financial debt as at 30 June 2024 compared to 31 December 2023 includes investments in materials, primarily texঞle linen products to be fed into the producঞon process, for approximately Euro 30.9 million, and the payment of the dividend on the result for the 2023 financial year for Euro 0.9 million. The change, in addiঞon to what has already been commented, is mainly due to a slight increase in the average collecঞon ঞmes and a simultaneous reducঞon in the average payment ঞmes recorded in the first half of 2024.

Also shown below is the total financial debt drawn up pursuant to the ESMA Recommendaঞon of 4 March 2021 which is applicable from 5 May 2021, in which the value of Other current financial liabiliঞes is recorded under the item Current financial debt and the value of Other non-current financial liabiliঞes is recorded under item Non-current trade and other payables, as well as the summary of the Group's direct and indirect financial debt.

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023	as at 30 June 2023
A. Cash	4,101	4,731	11,388
B. Cash equivalents	-	-
C. Other current financial assets	6,103	8,156	7,149
D. Liquidity (A)+(B)+(C)	10,204	12,887	18,537
E. Current financial debt (including debt instruments, but excluding current porঞon of non-current financial debt)	(35,594)	(37,169)	(47,357)
F. Current porঞon of non-current financial debt	(28,549)	(26,449)	(28,004)
of which Financial liabiliࢼes under IFRS 16	(3,861)	(3,852)	(3,684)
G. Current financial indebtedness (E)+(F)	(64,143)	(63,618)	(75,361)
H. Net current financial indebtedness (G)–(D)	(53,939)	(50,731)	(56,824)
I. Non-current financial debt (excluding current porঞon and debt instruments)	(74,321)	(66,385)	(68,641)
of which Financial liabiliࢼes under IFRS 16	(26,596)	(27,518)	(28,061)
J. Debt instruments	-	-	-
K. Non-current trade and other payables	(470)	(465)	(460)
L. Non-current financial indebtedness (I)+(J)+(K)	(74,791)	(66,850)	(69,101)
M. Total financial indebtedness (H)+(L)	(128,730)	(117,581)	(125,925)

6.17 Financial guarantee contracts

The table below lists the guarantees given by the Group, in place as at 30 June 2024 and as at 31 December 2023:

(thousands of Euros)	as at 30 June 2024	as at 31 December 2023
Guarantees issued by banks and insurance companies for tenders	78,771	78,273
Guarantees issued by banks and insurance companies for lease agreements and uঞliঞes	215	173
Guarantees issued by banks and insurance companies in favour of third parঞes	94,039	79,253
Owned assets held by third parঞes	162	159
Third party assets held at our faciliঞes	-	-
Pledge on Asolo Hospital Service S.p.A. shares given as loan guarantee	66	66
Pledge on Sesamo S.p.A. shares given as loan guarantee	237	237
Pledge on Prog.Este S.p.A. shares given as loan guarantee	1,212	1,212
Pledge on Progeni S.p.A. shares given as loan guarantee	76	76
Pledge on Synchron shares given as loan guarantee	344	344
Pledge on Futura S.r.l. quotas given as loan guarantee	9	9
Pledge on Summano Sanità shares given as loan guarantee	10	10
Total	175,141	159,812

Guarantees issued by banks and insurance companies for tenders: these were issued on behalf of the Group in favour of customers or potenঞal customers for parঞcipaঞon in tenders, to guarantee the correct execuঞon of the service.

Guarantees issued by banks and insurance companies for lease agreements and uঞliঞes: these were issued on behalf of the Group to guarantee the payment of lease instalments and invoices for the supply of electricity and gas.

Guarantees issued by banks and insurance companies in favour of third parঞes: these are guarantees issued to back the payment of the own porঞon of the project financing and guarantees issued in the interest of PSIS S.r.l., I.P.P. S.r.l., Gesteam S.r.l. and Shubhram Hospital Soluঞons Private Limited to back loan agreements. Mortgage loans on owned property: the Group has not granted liens on owned property and has no mortgage loans.

Pledge on shares of Asolo Hospital Service, Sesamo, Progeni, Prog.Este, Synchron, Futura and Summano Sanità to back the loans granted to project companies: this pledge was granted to the banks providing the project financing on the shares represenঞng the Group's interest in the special purpose enঞty.

7 Income statement

7.1 Sales revenues

The item is broken down as follows by business:

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
Wash-hire	109,423	107,688
Steril B (Linen Sterilisaঞon)	10,119	9,686
Steril C (Surgical Instruments Sterilisaঞon)	27,611	26,472
Sales revenues	147,153	143,846

Revenues and services by geographical area are broken down as follows:

(thousands of Euros)		Half-year ended as at 30 June
	2024	2023
Italy	126,255	124,363
Brazil	15,319	15,339
Turkey	5,579	4,144
Sales revenues	147,153	143,846

7.2 Other income

The item is broken down as follows:

(thousands of Euros)	as at 30 June 2024	as at 30 June 2023
Rental income	287	312
Capital gains from asset sale	445	242
Recovered costs pertaining to third parঞes	403	405
ATI income	803	771
Conঞngent assets/(liabiliঞes)	(12)	64
Recovered costs and sundry income	1055	994
Operaঞng grants	21	1,972
Total	3,002	4,760

The item "Other income" went from Euro 4,760 thousand as at 30 June 2023 to Euro 3,002 thousand as at 30 June 2024, recording a decrease of Euro 1,758 thousand. The decrease as at 30 June 2024 is mainly attributable to the item Operating grants which were recognised for the use of the electricity and gas tax credit benefit for the first and second quarter of 2023.

7.3 Raw materials and consumables

As at 30 June 2024, the consumpঞon of raw materials amounted to Euro 13,514 thousand, down by Euro 514 thousand compared to the previous period, mainly as a result of the lower costs incurred for the purchase of disposable products and PPE, following the exit of certain orders in the Veneto area, as well as the decrease in costs incurred for the purchase of washing and chemical products and packaging, due to a reducঞon in purchase prices and the opঞmisaঞon of the range of products used. Consumpঞon also refers to the purchase of consumables, fuels and spare parts.

7.4 Costs for services

The item is broken down as follows:

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
External laundering and other industrial services	17,435	16,888
Travel and transport	8,386	8,300
Uঞliঞes	8,314	12,014
Administraঞve costs	2,008	1,686
Consorঞum and sales costs	2,933	2,947
Personnel expense	1,842	1,662
Maintenance	4,652	4,572
Use of third-party assets	1,718	1,550
Other services	596	1,140
Total	47,884	50,759

Costs for services recorded a decrease of 5.7% compared to the same period of the previous year equal to Euro 2,875 thousand, going from Euro 50,759 thousand in the first half of 2023 to Euro 47,884 thousand in the first half of 2024. The decrease is also seen in terms of incidence on revenues, which went from 35.3% in the first half of 2023 to 32.7% in the first half of 2024, mainly as a result of lower costs incurred for uঞliঞes, which show a decrease of Euro 3,700 thousand compared to the same period of the previous year, or a decrease of 2.7% in terms of incidence on revenues.

The item External laundering and other industrial services recorded an increase of Euro 547 thousand, mainly due to greater use of external laundry and other services, also following new tenders with a different logisঞcs and producঞon structure with respect to the comparison period.

7.5 Personnel expense

The item is broken down as follows:

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
Costs for directors' fees	526	594
Salaries and wages	32,674	31,600
Temporary work	2,881	2,154
Social security charges	10,870	10,431
Employee severance indemnity	1,865	1,897
Other costs	160	130
Total	48,976	46,806

The item Personnel expense went from Euro 46,806 thousand as at 30 June 2023 to Euro 46,976 thousand as at 30 June 2024, recording an increase of Euro 2,170 thousand. The increase is mainly aributable to the Parent Company, as a result of the salary increases related to the entry into force of the new naঞonal collecঞve agreement, and to the Turkey and Brazil areas, due to the inflaঞon adjustments applied. In terms of relaঞve incidence, there was an increase of 0.7% compared to the first half of 2023.

The average number of Group employees is shown in the following table:

		Personnel as at 30 June
	2024	2023
Execuঞves	15	18
Middle managers	31	39
White-collar staff	389	368
Blue-collar staff	3,054	3,095
Total	3,489	3,520

7.6 Depreciation/amortisation, impairment and provisions

The item is broken down as follows:

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
Amorঞsaঞon of intangible assets	437	614
Depreciaঞon of property, plant and equipment	27,549	27,688
Impairment and provisions	257	450
Total	28,243	28,752

The item Depreciaঞon, amorঞsaঞon, impairment and provisions recorded a decrease compared to the same period of the previous year of Euro 509 thousand, from Euro 28,752 thousand in the first half of 2023 to Euro 28,243 thousand in the first half of 2024, while the relaঞve incidence decreased, from 20.0% in the first half of 2023 to 19.2% in the first half of 2024.

7.7 Financial income and expenses

Financial income is broken down as follows:

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
Bank interest income	21	5
Default interest	149	96
Interest income on loans to third-party companies	404	393
Other financial income	157	76
Total	731	570

Financial expenses are composed as follows:

(thousands of Euros)		Half-year ended as at 30 June
	2024	2023
Interest expense and bank commission	(3,879)	(2,280)
Interest and expense to other lenders	(418)	(447)
High inflaঞon effect	(668)	(314)
Financial expenses on employee benefits	(83)	(104)
Exchange rate losses	(219)	(978)
Other financial expenses	(1,655)	(1,117)
Total	(6,922)	(5,240)

Financial income went from Euro 570 thousand as at 30 June 2023 to Euro 731 thousand as at 30 June 2024, showing a posiঞve change of Euro 161 thousand.

Financial expenses went from Euro 5,240 thousand as at 30 June 2023 to Euro 6,922 thousand as at 30 June 2024, an increase of Euro 1,682 thousand mainly due to the increase in interest rates recorded with respect to outstanding loans from credit insঞtuঞons in Italy and Turkey. Also note the reducঞon in exchange rate losses in the first half of 2024 due to the lower depreciaঞon recorded primarily by the Turkish lira with respect to the comparison period. During the period, it was also noted the negaঞve effect of the adjustments to non-monetary items deriving from the applicaঞon of IAS 29 - Hyperinflaঞon by the Turkish companies Ankateks Turizm İnşaat Teksঞl Temizleme Sanayi ve Ticaret Ltd Şirkeঞ and Ergülteks Temizlik Teksঞl Ltd. Sঞ for Euro 668 thousand as well as the write-down of financial interest income from the company Shubhram Hospital Soluঞons Private Ltd for a total of Euro 399 thousand.

7.8 Current and deferred taxes

The item is broken down as follows:

(thousands of Euros)		Half-year ended as at 30 June
	2024	2023
Current taxes	783	891
Deferred tax (assets)/liabiliঞes	614	(858)
Total	1,397	33

7.9 Earnings per share

Basic and diluted earnings per share are calculated in the tables below.

(thousands of Euros)	Half-year ended as at 30 June
	2024	2023
Profit/loss a'ributable to shareholders of the parent company	3,998	2,661
Average number of shares	29,213	29,417
Basic earnings/(losses) per share	0.14	0.09

(thousands of Euros)		Half-year ended as at 30 June
	2024	2023
Profit (loss) for the period a'ributable to the Group:	3,998	2,661
Average number of shares outstanding	29,213	29,417
Number of shares with diluঞve effect	-	-
Average number of shares used to calculate diluted EPS	29,213	29,417
Diluted earnings/(losses) per share	0.14	0.09

8 Transactions with group companies and related parties

The transacঞons of Servizi Italia S.p.A. with related parঞes are conducted in compliance with the applicable Regulaঞons governing transacঞons with related parঞes and concern primarily:

• dealings associated with commercial service agreements;
• financial dealings, represented by loans.

From an economic, equity and financial point of view, the main transacঞons consঞtute ordinary transacঞons conducted under condiঞons equivalent to market or standard condiঞons and are

regulated by the appropriate contracts. The amount recorded in the reference period was generated by the renewal of exisঞng contracts or contracts sঞpulated in the same period.

No new agreements were sঞpulated with related parঞes in the half year ended as at 30 June 2024 with a significant impact on the financial disclosures of the Servizi Italia Group.

The economic transacঞons with the related parঞes of the Servizi Italia Group as at 30 June 2024 are shown below:

(thousands of Euros)	30 June 2024
Economic transacࢼons	Sale of goods and services	Other income	Purchases of goods and services	Personne l expense	Purchases of property, plant and equipment and intangible assets	Other costs	Financial income	Financial expenses
Coopservice S.Coop.p.A. (parent company)	5	13	6,386	-	-	2	-	-
Aurum S.p.A. (parent company)	-	-	-	-	-	-	-	-
Arezzo Servizi S.c.r.l. (joint control)	-	6	505	-	-	-	10	-
Psis S.r.l. (joint control)	133	61	-	-	1	30	-	-
Amg S.r.l. (joint control)	-	4	233	-	-	-	-	-
Steril Piemonte S.r.l. (joint control)	-	-	-	-	-	-	-	-
Piemonte Servizi Sanitari S.c.r.l. (associate)	-	63	263	-	-	-	3	-
Iniziaঞve Produমve Piemontesi S.r.l. (associate)	13	22	363	-	-	-	1	-
SAS Sterilizasyon Servisleri A.Ş. (joint control)	-	-	-	-	-	-	-	-
Shubhram Hospital Soluঞons Private Limited (joint control)	-	-	-	-	-	-	118	-
Sanitary cleaning Sh.p.k. (joint control)	-	-	-	-	-	-	-	-
Saniservice Sh.p.k. (joint control)	194	60	-	-	-	-	103	-
Servizi Sanitari Integraঞ Marocco S.a.r.l. (joint control)	-	-	-	-	-	-	-	-
Finanza & Progeম S.p.A. (joint control)	-	6	-	-	-	-	117	-
Brixia S.r.l. (associate)	2,101	-	20	-	-	-	-	-
Tecnoconsulঞng S.r.l. (associate)	-	-	84	-	376	-	-	-
Focus S.p.A. (affiliated)	-	-	-	-	-	14	-	613
Isঞtuto di Vigilanza Coopservice (associate)	-	-	13	-	-	-	-	-
New Fleur S.r.l. (affiliated)	-	98	-	-	-	-	-	-
Ospedal Grando S.p.A. (related party)	5,621	-	91	-	-	-	-	-
Akan & Ankateks JV (associate)	291	-	-	45	-	-	-	-
Akan (related party)	-	-	2	-	-	-	-	-
Nimetsu & Ankateks JV (associate)	-	-	-	-	-	-	-	-
Atala (related party)	-	-	-	-	-	-	-	-
Ankor (related party)	-	-	-	-	-	-	-	-
Ozdortler (related party)	-	-	-	-	-	-	-	-
Oguzalp Ergul (related party)	-	-	-	-	-	-	14	-
Feleknaz Demir (related party)	-	-	-	-	-	-	-	-
Volkan Akan (related party)	-	-	-	-	-	-	-	-
Fevzi Cenk Kiliç (related party)	-	-	-	-	-	-	-	-
Olimpos (related party)	-	-	414	-	-	-	-	-
Total	8,358	333	8,374	45	377	46	366	613

As regards income statement transacঞons with related parঞes, aside from the figures shown above, Personnel expense as at 30 June 2024 includes Directors' fees of Euro 586 thousand (of which Euro 74 thousand for social security charges) and execuঞve personnel expense of Euro 1,366 thousand. In relaঞon to the company Focus S.p.A., it should be noted that the Group represented the lease payments for the period equal to Euro 1,553 thousand as amorঞsaঞon/depreciaঞon of rights of use equal to Euro 1,080 thousand and financial expenses equal to Euro 613 thousand, in accordance with the provisions of IFRS 16.

Transacঞons with related parঞes of the Servizi Italia Group with an impact on the statement of financial posiঞon as at 30 June 2024 are shown below:

(thousands of Euros)	30 June 2024
Statement of financial posiࢼon	Amount of trade receivables	Amount of trade payables	Amount of financial receivabl es	Amount of rights of use	Amount of financial payables	Amount of other liabiliঞes
Coopservice S.Coop.p.A. (parent company)	227	4,187	-	-	-	-
Aurum S.p.A. (parent company)	-	-	-	-	-	-
Arezzo Servizi S.c.r.l. (joint control)	6	598	490	-	-	-
Psis S.r.l. (joint control)	113	18	-	-	-	-
Amg S.r.l. (joint control)	8	555	-	-	-	-
Steril Piemonte S.r.l. (joint control)	-	-	250	-	-	-
Piemonte Servizi Sanitari S.c.r.l. (associate)	105	417	161	-	-	-
Iniziaঞve Produমve Piemontesi S.r.l. (associate)	49	402	54	-	-	-
SAS Sterilizasyon Servisleri A.Ş. (joint control)	-	-	-	-	-	-
Shubhram Hospital Soluঞons Private Limited (joint control)	-	-	4,195	-	-	-
Sanitary cleaning Sh.p.k. (joint control)	-	-	-	-	-	-
Saniservice Sh.p.k. (joint control)	686	-	2,444	-	-	-
Servizi Sanitari Integraঞ Marocco S.a.r.l. (joint control)	-	-	-	-	-	-
Finanza & Progeম S.p.A. (joint control)	393	-	3,207	-	-	-
Brixia S.r.l. (associate)	947	14	-	-	-	-
Tecnoconsulঞng Srl (associate)	-	399	-	-	-	-
Focus S.p.A. (affiliated)	-	-	-	17,635	19,459	-
Isঞtuto di Vigilanza Coopservice (associate)	-	15	-	-	-	-
New Fleur S.r.l. (affiliated)	896	11	-	-	-	-
Ospedal Grando S.p.A. (related party)	5,798	313	-	-	-	-
Akan & Ankateks JV (associate)	653	-	-	-	-	-
Akan (related party)	133	-	-	-	225	-
Nimetsu & Ankateks JV (associate)	-	-	-	-	-	-
Atala (related party)	239	-	-	-	-	-
Ankor (related party)	-	-	-	-	15	-
Ozdortler (related party)	-	-	-	-	-	-
Oguzalp Ergul (related party)	-	-	70	-	-	-
Feleknaz Demir (related party)	-	-	-	-	-	-
Volkan Akan (related party)	117	-	-	-	-	-
Fevzi Cenk Kiliç (related party)	97	-	-	-	-	-
Olimpos (related party)	-	111	-	-	-	-
Total	10,467	7,040	10,871	17,635	19,699	-

9 Company officers' fees

Economic transacঞons with the company officers as at 30 June 2024 are summarised below.

• Board of Directors: Euro 586 thousand (recognised as Personnel expense);
• Board of Statutory Auditors: Euro 46 thousand (recognised as Costs for services).

10 Income from non-recurring, atypical and/or unusual transactions

No income from non-recurring transacঞons was recorded during the half. During the half, no atypical and/or unusual transacঞons were entered into, as defined in Consob Communicaঞon no. 6064293 of 28 July 2006.

The Chairman of the Board of Directors (Roberto Olivi)

Certification of the half-year condensed financial statements pursuant to Art. 81-ter of Consob Regulation no. 11971 of 14 May 1999 as amended

Castellina di Soragna, 8 August 2024

• 1. In consideraঞon of the provisions of Art. 154-bis, paragraphs 3 and 4 of Italian Legislaঞve Decree no. 58 of 24 February 1998, the undersigned Roberto Olivi, in his capacity as Chairman of the Board of Directors, and Angelo Minoa, in his capacity as Financial Reporঞng Manager of Servizi Italia S.p.A., cerঞfy:
  2. the adequacy in relaঞon to the characterisঞcs of the business and;
  3. the effecঞve applicaঞon of the administraঞve and accounঞng procedures to prepare the half-year condensed consolidated financial statements from 1 January 2024 to 30 June 2024.
• 1. It is also cerঞfied that:
  2. 2.1. the half-year condensed financial statements:
     • a) have been prepared in compliance with the applicable internaঞonal accounঞng standards recognised in the European Community pursuant to Regulaঞon (EC) no. 1606/2002 of the European Parliament and of the Council, dated 19 July 2002;
     • b) correspond to the books and accounঞng entries;
     • c) provide a true and fair view of the financial posiঞon, income and cash flows of the Company and all the companies included in the scope of consolidaঞon.
  3. 2.2. The interim directors' report includes a reliable analysis of the significant events that took place in the first six months of the year and their impact on the half-year condensed financial statements, along with a descripঞon of the main risks and uncertainঞes for the remaining six months of the year. The interim directors' report also includes a reliable analysis of the informaঞon on related party transacঞons.

The Chairman of the Board of Directors Roberto Olivi

The Financial Reporঞng Manager Angelo Minoa

REVIEW REPORT ON CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

To the shareholders of Servizi Italia SpA

Foreword

We have reviewed the accompanying consolidated condensed interim financial statements of Servizi Italia SpA and its subsidiaries (the Servizi Italia Group) as of 30 June 2024, comprising the consolidated statement of financial position, consolidated income statement, consolidated statement of comprehensive income, statement of changes in consolidated shareholders' equity, consolidated cashflow statement and related explanatory notes. The directors of Servizi Italia Group are responsible for the preparation of the consolidated condensed interim financial statements in accordance with the international accounting standard applicable to interim financial reporting (IAS 34) as adopted by the European Union. Our responsibility is to express a conclusion on these consolidated condensed interim financial statements based on our review.

Scope of Review

We conducted our work in accordance with the criteria for a review recommended by Consob in Resolution No. 10867 of 31 July 1997. A review of consolidated condensed interim financial statements consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than a fullscope audit conducted in accordance with International Standards on Auditing (ISA Italia) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated condensed interim financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated condensed interim financial statements of Servizi Italia Group as of 30 June 2024 are not prepared, in all material respects, in accordance with the international accounting standard applicable to interim financial reporting (IAS 34) as adopted by the European Union.

Other Matters

The consolidated financial statements of Servizi Italia Group for the year ended 31 December 2023 and the consolidated condensed interim financial statements for the period ended 30 June 2023 were audited and reviewed, respectively, by other auditors, who on 27 March 2024 expressed an unmodified opinion on the consolidated financial statements, and on 10 August 2023 expressed an unmodified conclusion on the consolidated condensed interim financial statements.

Verona, 8 August 2024

PricewaterhouseCoopers SpA

Signed by

Alessandro Vincenzi (Partner)

This review report has been translated into the English language solely for the convenience of international readers. Accordingly, only the original text in Italian language is authoritative.