Servizi Italia

Quarterly Report • May 14, 2024

Interim Report on Operations

as at 31 March 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

1	Company Officers And Corporate Information	3
2	Group structure	4
3	Directors' report on operations	5
4	Accounting Schedules	11
5	Notes	13
	5.1 Introduction	13
5.2 Performance by business segment and geographical area 13
5.3 Notes on the main changes in the statement of financial position 15
	5.4 Note on the main changes in the income statement	21
5.5 Consolidated net financial position 23

1 COMPANY OFFICERS AND CORPORATE INFORMATION

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

Name and Surname	Position
Roberto Olivi (*)	Chairman
Ilaria Eugeniani(*)	Deputy Chairwoman
Michele Magagna(*)	Director
Umberto Zuliani(1)	Director
Roberta Labanti (1)	Independent Director
Benedetta Pinna (1) (2)	Independent Director
Antonio Aristide Mastrangelo	Independent Director

(1) Member of the Governance and Related Parties Committee; (2) Lead Independent Director

(*) Members of the Executive Committee

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

Name and Surname	Position
Antonino Girelli	Chairman
Gianfranco Milanesi	Standing auditor
Elena Iotti	Standing auditor
Lorenzo Keller	Alternate Auditor
Valeria Gasperini	Alternate auditor

Supervisory Body (in office until 2 February 2025)

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

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

Registered offices and company information

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; Certified email: si-servizitalia@postacert.cedacri.it Founded: 1986 Listing segment: Euronext STAR Milan Ordinary Share ISIN codes: IT0003814537, BLOOMBERG: SRI IM, REUTERS: SRI.MI LEI Code: 815600C8F6D5ACBA9F86

Investor Relations

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

2 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 sterilisation of textiles and surgical instruments for hospital facilities. With a technologically advanced production platform broken down into laundering facilities, textile sterilisation centres, surgical instrument sterilisation 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 facilities in central and northern Italy, in the state of São Paulo in Brazil, in Turkey, India, Albania and Morocco.

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. San Martino 2000 S.c.r.l.	Malagnino (Cremona) – Italy Genoa – Italy	EUR EUR	134,500 10,000	95% 60%
SRI Empreendimentos e Participações L.t.d.a.	City of São Paulo, State of São Paulo - Brazil	BRL	217,757,982	100%
Lavsim Higienização Têxtil 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 Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi	Ankara – Turkey	TRY	85,000,000	55%
Ergülteks Temizlik Tekstil Ltd. Sti. Ankateks Tur. Teks. Tem.Sanve TIC. A.s. –	Ankara – Turkey	TRY	1,700,000	57.5%(**)
Olimpos Laundry Teks.Tem. Hizm. Ve Tur. San. Tic. LTD.Sti IS Ortakligi	Antalya –Turkey	TRY	10,000	51%(**)

As at 31 March 2024, the Servizi Italia Group included the following companies:

(*) Held through SRI Empreendimentos e Participações Ltda

(**) Held through Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi

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 Solutions Private Ltd.	New Delhi – India	INR	362,219,020	51%
Servizi Sanitari Integrati 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 (CN) – Italy	EUR	100,000	50%
Finanza & Progetti S.p.A.	Vicenza – Italy	EUR	550,000	50%
Iniziative Produttive 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%
Tecnoconsulting S.r.l.	Scandicci (FI) - Italy	EUR	10,000	33%
(*) The 15.05% indirect shareholding held through Iniziative Produttive Piemontesi S.r.l. should be added to this.

3 DIRECTORS' REPORT ON OPERATIONS

This Interim Report as at 31 March 2024 has been prepared in compliance with the International Accounting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and approved by the European Union, and must be read together with the information provided in the consolidated financial statements as at 31 December 2023. In order to allow for a better evaluation of the economic and financial performance, the following summary tables show some "Alternative performance indicators", not provided by the IFRS International Accounting Standards. The footnotes of said tables indicate the calculation method used and the composition of these ratios, in line with the guidelines of the European Securities and Markets Authority (ESMA).

Main consolidated income statement figures

The table below presents a comparison of the main consolidated income statement figures as at 31 March 2024 with the results as at 31 March 2023 (in thousands of Euros):

31 March 2024	31 March 2023	Change	Change %
73,408	72,555	853	1.2%
18,972	18,014	958
25.8%	24.8%		1.0%
5,013	3,604	1,409
6.8%	5.0%		1.8%
2,412	2,311	101
3.3%	3.2%		0.1%

(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 position figures as at 31 March 2024 with the figures as at 31 December 2023 (in thousands of Euros):

(thousands of Euros)	31 March 2024	31 December 2023	Change	Change %
Net operating working capital(a)	3,645	(3,246)	6,891	-212.3%
Other current assets/liabilities(b)	(6,993)	(11,194)	4,201	-37.5%
Net working capital	(3,348)	(14,440)	11,092	-76.8%
Non-current assets – medium/long-term provisions	272,565	269,683	2,882	1.1%
of which Rights of use under IFRS 16	27,766	28,246	(480)	-1.7%
Net invested capital	269,217	255,243	13,974	5.5%
Shareholders' equity (B)	140,986	138,543	2,443	1.8%
Net financial debt(d) (A)	128,231	116,700	11,531	9.9%
of which Financial liabilities under IFRS 16	30,734	31,370	(636)	-2.0%
Net invested capital(c)	269,217	255,243	13,974	5.5%
Gearing [A/(A+B)]	47.6%	45.7%
Debt/Equity (A/B)	91.0%	84.2%

(a) Net operating working capital is not an accounting measurement under the IFRSs endorsed by the European Union. The Company 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 and other current liabilities.

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

(d) The 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.

Company information and business performance

As at 31 March 2024, consolidated revenues of the Servizi Italia Group amounted to Euro 73,408 thousand, an increase of 1.2% (+3.4% at constant exchange rates) compared to as at 31 March 2023. Please note the following as regards revenue from sales and services by sector for 31 March 2024 compared to 31 March 2023:

• Revenues from wash-hire services (which in absolute terms represent 74.9% of the Group's revenues) rose from Euro 54,357 thousand in the first three months of 2023 to Euro 55,009 thousand in the same period of 2024, recording an increase of 1.2% (or 4.2% at constant exchange rates), due to growth recorded in both Brazil (+6.6% or 2.8% at constant exchange rates) and Turkey (+2.2%, or 71.2% at constant exchange rates). The Italy area recorded growth of 0.3% over the comparison period as a result of 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 6.3% of the Group's revenues) fell from Euro 4,951 thousand in the first three months of 2023 to Euro 4,659 thousand, with a decrease of 5.9%, mainly due to discontinued contracts in the Veneto area during the second half of 2023.
• Revenues from surgical instrument sterilisation services (Steril C) (which in absolute terms represent 18.7% of the Group's revenues) rose from Euro 13,247 thousand in 2023 to Euro 13,740 thousand in 2024, with an increase of 3.7%, equal to Euro 493 thousand mainly due to higher operating activities recorded in the period in the Italy area.

Consolidated EBITDA went from Euro 18,014 thousand in the first three months of 2023 to Euro 18,972 thousand in the same period of 2024, with an EBITDA margin growing by 100 bps, from 24.8% to 25.8% of revenues or an increase in absolute value of 5.3%. During the period, there was a decrease in the impact of costs for raw materials of 0.3%, and in absolute value of 2.3%, driven primarily by lower marketing of disposable material and personal protective equipment. Costs for services recorded a 9.3% decrease in absolute value during the period, i.e. an improvement in the EBITDA margin of 3.8%, primarily due to the decrease with respect to the comparison period of gas costs (Euro -2,379 thousand or - 3.3% relative incidence) and electricity (Euro -625 thousand or -0.9% relative incidence). Also note that first quarter of 2023 included the benefit of the tax receivable in the Italy area of Euro 1,537 thousand, recorded under other revenues and absent in the first quarter of 2024. Personnel costs increased in terms of incidence on turnover (+1.3%) compared to the previous period and were also up in absolute value (+5.3%), predominantly as a result of salary adjustments applied in the Italy area upon entry into force of the new National Labour Contractual Agreement starting from March and December 2023. During the period, operating margins decreased in the Brazil area (EBITDA margin going from 25.2% to 21.6%), partly due to the start-up phase of the sterilisation plant in São Paulo and to higher personnel costs recorded during the period, while there was a significant recovery in margins in the Turkey area (EBITDA margin going from 25.7% to 35.3%) mainly due to the inflationary adjustment of contract prices.

The consolidated operating result (EBIT) went from Euro 3,604 thousand during the first three months of 2023 (5.0% compared to the turnover for the period) to Euro 5,013 thousand during the same period in 2024 (6.8% compared to the turnover for the period), mainly due to the dynamics already described in the comment on the change in turnover and EBITDA; a reduction in depreciation, amortisation and impairment was also recorded (Euro -451 thousand or -0.9% in terms of relative incidence).

Financial management showed an increase in financial expenses of Euro 1,297 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.

Income taxes for the period amounted to negative Euro 621 thousand, with an incidence on the pretax result of 20.5%, and mainly concern the recognition in the income statement of current taxes, as well as the release of deferred tax assets allocated for previous tax losses.

Therefore, the consolidated interim financial statements as at 31 March 2024 closed with a net profit of Euro 2,412 thousand, compared to the net profit of Euro 2,311 thousand for the same period of the previous year.

Significant events and transactions

On 27 March 2024, the Board of Directors of Servizi Italia approved the merger by incorporation of the wholly-owned subsidiary Ekolav S.r.l., operating on the Italian market in the linen wash-hire sector for healthcare and social welfare facilities. This merger is part of a corporate simplification and reorganisation process launched by the merging entity with the aim of pursuing greater production synergies - in consideration of commercial prospects and with a view to harmonising and optimising customer service - as well as containment of overheads. The merger is not subject to the approval of other bodies and will take effect with respect to third parties from the date on which the last of the registrations prescribed by Article 2504 of the Italian Civil Code or from any other subsequent date established in the merger deed, whose stipulation is reasonably expected by the current year 2024.

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

Customer	Service provided	Contract value per year (thousands of Euros)
GESAT Scarl - Pistoia Hospital	Wash-hire	1,003
Marche Area 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 first quarter

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

• approved the financial statements of the Parent Company closed on 31 December 2023;
• approved the distribution to Shareholders of an ordinary single dividend, gross of the legal withholdings, equal to Euro 0.03 for the shares in circulation, with the exclusion of the treasury shares in the portfolio, for a maximum amount of Euro 954,283.53;
• resolved the authorisation to purchase and dispose of treasury shares, as proposed by the Board of Directors. The resolution authorised the purchase of a maximum of 6,361,890 ordinary shares with nominal value of Euro 1.00 each, corresponding to one-fifth of the Company's share capital (taking into account the shares already held by the Company) for a period 18 months from the meeting date, while the duration of the authorisation for disposal of the treasury shares has no time limits;

• approved the remuneration 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 resolution proposal formulated by the Board of Directors, which matches the first preference contained in the reasoned Recommendation of the Board of Statutory Auditors;
• resolved the renewal of the Board of Directors for the three-year period 2024-2026, also determining the relative remuneration. All the members of the Board of Directors, with the exception of Director Antonio Aristide Mastrangelo, were taken from the list submitted 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' Meeting; Director Antonio Aristide Mastrangelo was taken from the list submitted 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 Executive Committee, composed of Roberto Olivi (Chairman of the Board of Directors and of the Executive Committee), Ilaria Eugeniani (Director, appointed Deputy Chair of the Board of Directors and of the Executive Committee) and Michele Magagna (Director), assisted by the General Manager Andrea Gozzi. Subsequently, it established the Governance and Related-Party Committee, responsible for remuneration, appointments, control and risks and transactions with related parties, composed of Benedetta Pinna as Chair (Independent Director), Roberta Labanti (Independent Director) and Umberto Zuliani (Non-executive Director). Lastly, the Board appointed the Director Benedetta Pinna as Lead Independent Director and the Chair Roberto Olivi as Director in charge of the Internal Control and Risk Management System.

Business outlook

The results achieved in the first quarter of 2024 carry on with the excellent performance of the 2023 financial year. Consolidation of the customer portfolio, careful management of operations and the positive trend in energy commodity prices contributed positively to the results achieved both in absolute and relative terms. More incisive than in the comparison period was certainly the cost of money resulting 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 so as to ensure stable financial evolution of the business in the upcoming future. In the medium-term strategy, the Group expects an organic consolidation of its leadership position in the Italian and foreign market and a continuous search for optimisation and efficiencies. Although in a geopolitical context of difficult interpretationand with a trend in interest rates that is hopefully decreasing, although in the medium term, the Group will continue to work to achieve objectives and respect the commitments assumed, maintaining a solid capital position through an adequate financial balance and a good credit rating with banking institutions.

Servizi Italia and the financial markets

Since 22 June 2009, the Company's stock has been traded on the Euronext STAR Milan segment of Euronext Milan (EXM). The main share and stock exchange data as at 31 March 2024 are disclosed below along with share volume and price trends (in Euros):

Share and stock exchange data	31 March 2024
No. of shares making up the share capital	31,809,451
Price at IPO: 4 April 2007	Euro 8.50
Price as at 29 March 2024	Euro 1.71
Maximum price during the period	Euro 1.91
Minimum price during the period	Euro 1.50
Average price during the period	Euro 1.69
Volumes traded during the period	5,623,322
Average volumes during the period	89,259

Share volumes and Prices as at 31 March 2024

During the reference period, the investor relations team remained available for individual and group calls with anyone interested in obtaining information and expanding their activities and business. In addition to the research study by specialist Intermonte SIM, the Group also appointed Tp Icap Midcap Partners (Appointed rep by Louis Capital Markets UK, LLP).

Other information

On 10 October 2023, as already communicated, Servizi Italia and Steris S.p.A. (the "Parties") signed an agreement through which they committed to respectively purchase and sell the business unit of Steris S.p.A. (the "Transaction") active in the sterilisation of surgical instruments in Italy. By express contractual provision, completion of the transaction was subject to the condition precedent, among other things, of obtaining authorisation by the Italian Competition Authority ("AGCM"). On 18

October 2023, Servizi Italia voluntarily communicated the Transaction to the aforementioned Authority. The Transaction was subsequently found subject to an obligation to notify the AGCM pursuant to the aforementioned Article 16, paragraph 1 bis of Law 287/90 relating to the reporting of so-called sub-threshold transactions. In particular, on 6 December 2023 the AGCM sent Servizi Italia a request for formal notice of the Transaction. On 26 March 2024 the AGCM then started phase two of the investigation. The related proceedings, still in progress, will presumably be concluded by next June.

Servizi Italia S.p.A., pursuant to Article 3 of the Consob Resolution no. 18079 of 20 January 2012, decided to join the out-put regime set forth in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Consob Regulations n. 11971/99 (as amended and integrated), availing itself of the right to derogate from the obligation to publish the information documents as set forth in annex 3B of the above mentioned Consob Regulations when carrying out significant merging, demerging, share capital increases through contributions in kind, acquisitions and transfer operations.

With reference to the changes made to the regulatory framework in 2016, Servizi Italia S.p.A. publishes the additional periodical information, meeting the obligations envisaged for the issuers listed in the STAR segment as specified in Article 2.2.3, paragraph 3, of the Regulations for the Markets organised and managed by Borsa Italiana S.p.A. and in the notice No. 7578 issued by Borsa Italiana on 21 April 2016.

The Chairman of the Board of Directors

(Roberto Olivi)

4 ACCOUNTING SCHEDULES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(thousands of Euros)	31 March	31 December
ASSETS	2024	2023
Non-current assets
Property, plant and equipment	168,915	166,473
Intangible assets	2,895	3,057
Goodwill	61,241	61,438
Equity-accounted investments	34,344	33,023
Equity investments in other companies	2,938	2,938
Financial receivables	6,232	6,037
Deferred tax assets	12,262	12,467
Other assets	2,328	2,531
Total non-current assets	291,155	287,964
Current assets
Inventories	9,109	9,244
Trade receivables	80,534	75,141
Current tax receivables	2,135	2,018
Financial receivables	7,088	8,156
Other assets	14,697	11,753
Cash and cash equivalents	4,342	4,731
Total current assets	117,905	111,043
TOTAL ASSETS	409,060	399,007
SHAREHOLDERS' EQUITY AND LIABILITIES
Group shareholders' equity
Share capital	29,214	29,302
Other reserves and retained earnings	106,139	100,801
Profit (loss) for the period	2,189	5,463
Total shareholders' equity attributable to shareholders of the parent
company	137,542	135,566
Total shareholders' equity attributable to non-controlling interests	3,444	2,977
TOTAL SHAREHOLDERS' EQUITY	140,986	138,543
LIABILITIES
Non-current liabilities
Due to banks and other lenders	80,208	66,385
Deferred tax liabilities	3,055	2,933
Employee benefits	7,216	7,389
Provisions for risks and charges	7,851	7,494
Other financial liabilities	468	465
Total non-current liabilities	98,798	84,666
Current liabilities
Due to banks and other lenders	59,453	63,202
Trade payables	85,998	87,631
Current tax payables	904	626
Employee benefits	-	-
Other financial liabilities	418	416
Provisions for risks and charges	1,722	1,783
Other payables	20,781	22,140
Total current liabilities	169,276	175,798
TOTAL LIABILITIES	268,074	260,464
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	409,060	399,007

CONSOLIDATED INCOME STATEMENT

(thousands of Euros)	31 March 2024	31 March 2023
Sales revenues	73,408	72,555
Other income	1,463	2,853
Raw materials and consumables	(6,875)	(7,038)
Costs for services	(24,177)	(26,670)
Personnel expense	(24,464)	(23,241)
Other costs	(383)	(445)
Depreciation/amortisation, impairment and provisions	(13,959)	(14,410)
Operating profit	5,013	3,604
Financial income	365	317
Financial expenses	(3,347)	(2,050)
Income/(expense) from equity investments	-	-
Revaluation/impairment of equity-accounted investments	1,002	385
Profit before tax	3,033	2,256
Current and deferred taxes	(621)	55
Profit (loss) for the period	2,412	2,311
of which: Portion attributable to shareholders of the parent company	2,189	2,052
Attributable to non-controlling interests	223	259

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(thousands of Euros)	31 March 2024	31 March 2023
Profit (loss) for the period	2,412	2,311
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	(917)	429
Portion of comprehensive income of the investments measured using the equity method	160	(119)
Income taxes on other comprehensive income	-	-
Total other comprehensive income after taxes	(757)	310
Total comprehensive income for the period	1,655	2,621
of which: Portion attributable to shareholders of the parent company	1,608	2,479
Attributable to non-controlling interests	47	142

CONSOLIDATED NET FINANCIAL POSITION

(thousands of Euros)	31 March 2024	31 December 2023	31 March 2023
Cash and cash equivalents in hand	46	59	25
Cash at bank	4,296	4,672	4,542
Cash and cash equivalents	4,342	4,731	4,567
Current financial receivables	7,088	8,156	7,138
Current due to banks and other lenders	(59,453)	(63,202)	(80,277)
of which Financial liabilities under IFRS 16	(3,789)	(3,852)	(3,677)
Current net financial debt	(52,365)	(55,046)	(73,139)
Non-current due to banks and other lenders	(80,208)	(66,385)	(67,404)
of which Financial liabilities under IFRS 16	(26,945)	(27,518)	(28,866)
Non-current net financial debt	(80,208)	(66,385)	(67,404)
Net financial debt	(128,231)	(116,700)	(135,976)

5 NOTES

5.1 Introduction

The Interim Report on Operations as at 31 March 2024 has been prepared in compliance with Art. 154-ter of the Consolidated Law on Finance.

The accounting standards and criteria adopted for the preparation of this Interim Report on Operations as at 31 March 2024, not subject to audit, are the same as those used for the preparation of the annual financial statements as at 31 December 2023, to which reference should be made for their description, with the exception of the IFRS standards, amendments and interpretations applied for the first time on 1 January 2024. The consolidated subsidiaries are San Martino 2000 S.c.r.l., Steritek S.p.A., Wash Service S.r.l., Ekolav S.r.l., SRI Empreendimentos e Participações Ltda (parent company of the companies: Lavsim Higienização Têxtil S.A., Maxlav Lavanderia Especializada S.A., Vida Lavanderias Especializada S.A., Aqualav Serviços De Higienização Ltda) and Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Anonim Şirketi (parent company of the companies: 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).

The estimation criteria used to prepare the Interim Report are basically the same as those applied in the Annual Financial Statements.

This Interim Report on Operations is approved by the Board of Directors on 14 May 2024.

5.2 Performance by business segment and geographical area

The revenue from sales and services of the Servizi Italia Group shown below divided by business line for the periods ending 31 March 2024 and 31 March 2023 show the following data and changes:

(thousands of Euros)	31 March 2024	%	31 March 2023	%	% change	% organic change	% exchange rate change
Wash-hire	55,009	74.9%	54,357	74.9%	1.2%	4.2%	-3.0%
Linen sterilisation (Steril B)	4,659	6.3%	4,951	6.8%	-5.9%	-5.9%	0.0%
Surgical instrument sterilisation (Steril C)	13,740	18.7%	13,247	18.3%	3.7%	3.7%	0.0%
Sales revenues	73,408	100.0%	72,555	100.0%	6.5%	8.1%	-1.6%

• Revenues from wash-hire services (which in absolute terms represent 74.9% of the Group's revenues) rose from Euro 54,357 thousand in the first three months of 2023 to Euro 55,009 thousand in the same period of 2024, recording an increase of 1.2% (or 4.2% at constant exchange rates), due to growth recorded in both Brazil (+6.6% or 2.8% at constant exchange rates) and Turkey (+2.2%, or 71.2% at constant exchange rates). The Italy area recorded growth of 0.3% over the comparison period as the aftermath of 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 6.3% of the Group's revenues) fell from Euro 4,951 thousand in the first three months of 2023 to Euro

4,659 thousand, with a decrease of 5.9%, mainly due to discontinued contracts in the Veneto area during the second half of 2023.

• Revenues from surgical instrument sterilisation services (Steril C) (which in absolute terms represent 18.7% of the Group's revenues) rose from Euro 13,247 thousand in 2023 to Euro 13,740 thousand in 2024, with an increase of 3.7%, equal to Euro 493 thousand mainly due to higher operating activities recorded in the period in the Italy area.

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

The revenue from sales and services of the Servizi Italia Group shown below divided by geographical area for the periods ending 31 March 2024 and 31 March 2023 show the following data and changes:

(thousands of Euros)	31 March 2024	%	31 March 2023	%	% change	% organic change	% exchange rate change
Italy	62,857	85.6%	62,542	86.2%	0.5%	0.5%	0.0%
Brazil	7,723	10.5%	7,245	10.0%	6.6%	2.8%	3.8%
Turkey	2,828	3.9%	2,768	3.8%	2.2%	71.2%	-69.0%
Sales revenues	73,408	100.0%	72,555	100.0%	1.2%	3.4%	-2.3%

5.3 Notes on the main changes in the statement of financial position

Property, plant and equipment

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

(thousands of Euros)	Land and buildings	Plant and machinery	Returnable assets	Equipment	Other assets	Fixed assets in progress	Total
Historical cost	45,311	164,047	36,177	73,287	175,886	11,984	506,692
Accumulated depreciation	(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
Translation differences	(82)	(355)	(11)	(8)	(152)	(42)	(650)
High inflation effect in Turkey	130	549	-	-	191	-	870
Increases	473	613	229	1,085	11,695	1,931	16,026
Decreases	-	(4)	-	-	(93)	(122)	(219)
Depreciation	(891)	(1,605)	(355)	(1,116)	(9,618)	-	(13,585)
Impairments (reinstatements)	-	-	-	-	-	-	-
Reclassifications	-	1,125	593	46	228	(1,992)	-
Balance as at 31 March 2024	28,325	42,859	7,631	11,649	66,692	11,759	168,915
Historical cost	45,819	165,556	36,735	74,273	187,284	11,759	521,426
Accumulated depreciation	(17,494)	(122,697)	(29,104)	(62,624)	(120,592)	-	(352,511)
Balance as at 31 March 2024	28,325	42,859	7,631	11,649	66,692	11,759	168,915

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

The item "High inflation effect in Turkey" refers to the application of IAS 29 accounting standard to the historical cost of property, plant and equipment of the companies Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi and Ergülteks Temizlik Tekstil Ltd. Sti.

The increases as at 31 March 2024 mainly refer to investments in linen, included in the item Other assets, equal to Euro 11,077 thousand of which 8,938 thousand relating to the Italy area and Euro 2,139 thousand relating to the Brazil area. These investments aim at an increasingly efficient management of the warehouse supplied, both in the case of a partial renewal of contracts and on occasion of the first supply for contracts acquired during the period in question.

The item Land and buildings recorded an increase of Euro 473 thousand mainly attributable to the change in the value of the right of use asset for the inflationary adjustment of lease contracts following the application of the IFRS 16 accounting standard.

The item Plant and equipment recorded an increase of Euro 613 thousand, mainly relating to the Italy area for Euro 334 thousand and in the Turkish area for Euro 225 thousand.

The item Industrial and commercial equipment shows increases of Euro 1,085 thousand, of which Euro 481 thousand relating to the purchase of surgical instruments for the initial supply for nine contracts and Euro 604 thousand for the purchase of industrial equipment.

The increases in item Fixed assets in progress relate to works on third-party assets still under construction as at 31 March 2024. The item Fixed assets in progress consists mainly of Euro 7,565 thousand in the Italy area, mainly relating to the surgical instrument sterilisation division, and Euro 4,182 thousand in the Brazil area, relating mainly to investments in the sterilisation centre in the São Paulo area.

Reclassifications show decreases of Euro 1,992 thousand mainly relating to the entry into operation of new plants and machinery by the Parent Company.

Intangible assets

This item changed as follows:

(thousands of Euros)	Trademarks, Software, Patents and Intellectual Property Rights	Customer contracts portfolio	Other intangible assets	Fixed assets in progress and advances	Total
Historical cost	8,828	8,367	525	310	18,030
Accumulated amortisation	(7,808)	(6,640)	(525)	-	(14,973)
Balance as at 1 January 2024	1,020	1,727	-	310	3,057
Translation differences	(2)	-	-	-	(2)
High inflation effect in Turkey	1	-	-	-	1
Increases	70	-	-	16	86
Decreases	-	-	-	(20)	(20)
Amortisation	(119)	(108)	-	-	(227)
Impairments (reinstatements)	-	-	-	-	-
Reclassifications	96	-	-	(96)	-
Balance as at 31 March 2024	1,066	1,619	-	210	2,895
Historical cost	8,989	8,367	521	210	18,087
Accumulated amortisation	(7,923)	(6,748)	(521)	-	(15,192)
Balance as at 31 March 2024	1,066	1,619	-	210	2,895

The increases in the item Trademarks, software, patents and intellectual property rights are mainly attributable to the purchase by the Italy area of software licences. In addition, please note the increase in item Fixed assets in progress and advances mainly relating to the purchase of new software licences by the Italy area.

The item "High inflation effect in Turkey" refers to the application of IAS 29 accounting standard to the historical cost of intangible assets of the company Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi.

Goodwill

Goodwill is allocated to the Servizi Italia Group's cash generating units identified on the basis of a geographical criterium, which reflects the areas of operation of the companies acquired over the years.

In particular, goodwill is allocated by geographical area as follows:

(thousands of Euros)	as at 31 December 2023	Increases/ (Decreases)	Translation differences	as at 31 March 2024
CGU Italy	51,668	-	-	51,668
CGU Turkey	2,098	-	(138)	1,960
CGU Brazil	7,672	-	(59)	7,613
Total	61,438	-	(197)	61,241

The change in the period is exclusively attributable to exchange differences from the conversion into Euros of goodwill arising from acquisitions in Brazil and Turkey.

Apart from the portion of goodwill relating to CGU Steritek (surgical instrument sterilisation operating segment), all other identified goodwill is included in the wash hire operating segment, as defined for the purposes of the sector reporting required by IFRS 8.

At the date of approval of this Interim Report, 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.

Equity-accounted investments

This item changed as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Opening balance	28,442	29,674
Increases/(decreases)	-	(756)
Reclassifications	-	(1,500)
OCI changes	160	(626)
Revaluations/(impairment)	1,002	1,948
Translation differences	(134)	(298)
Closing balance	29,470	28,442
of which recognised among Provisions for risk and charges	(4,874)	(4,581)
of which recognised among Equity-accounted investments	34,344	33,023

The revaluations and write-downs include the portions of profits and losses recorded by the investees in the period.

The item OCI changes, positive for Euro 160 thousand, corresponds to the portion attributable to the Servizi Italia Group, within the scope of application of the equity method, of the change in fair value of hedging derivatives subscribed by the company Ospedal Grando S.p.A. (subsidiary of the associate company Finanza e Progetti S.p.A.).

With reference to the equity investment in Shubhram Hospital Solutions Private Limited, in consideration of the commitments assumed with the local Indian partner, the portion of the losses exceeding the value of the equity investment was booked to the item Provisions for risks and charges.

Other non-current assets

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Substitute tax Italian Decree Law 185/2008 subsequent years	338	507
Aqualav receivable in escrow account	1,484	1,496
Other non-current assets	505	528
Total	2,328	2,531

The change in the item is mainly due to the release to the income statement of the substitute taxes based on Article 15, paragraphs 10-12 of the Decree Law 185/08, paid in order to obtain the tax recognition of the goodwill values that emerged during the business combination. These substitute taxes were recognised as an advance on current taxes and entered into the Income Statement within the time frame when the company benefits from the tax deductions related to the respective goodwill amounts. The change in "Aqualav receivable in escrow account" is attributable to the depreciation of the exchange rate of the Real against the Euro.

Trade receivables

Trade receivables amounted to Euro 80,534 thousand as at 31 March 2024, up by Euro 5,393 thousand compared to 31 December 2023.

In the first quarter of 2024, the Servizi Italia Group carried out some transactions concerning the disposal of receivables for a total amount of Euro 19,989 thousand or a consideration of Euro 19,794 thousand.

Other current assets

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Due from others	11,533	9,885
Deferred income	2,917	1,624
Guarantee deposits receivable	241	244
Accrued income	6	-
Total	14,697	11,753

The item Receivables due from others is mainly composed of the VAT receivable requested for reimbursement for a total of Euro 6,525 thousand (Euro 4,654 as at 31 December 2023) and, for the remainder, mainly of advances and receivables from social security institutions, all due within the year. The item Deferred income increased primarily as a consequence of rentals and insurance premiums that were recognised at the beginning of the year. The item Guarantee deposits refers to energy utilities and rental contracts.

Shareholders' equity

As at 31 March 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 first quarter of 2024, the Parent Company purchased 87,550 treasury shares for Euro 146 thousand, equal to 0.46% of the share capital, with an average purchase price of Euro 1.67 per share. Following these transactions, the Company held 2,595,302 treasury shares amounting to 8.16% of the share capital as at 31 March 2024. The value of the treasury shares held as at 31 March 2024 of Euro 6,309 thousand was classified as a reduction in shareholders' equity.

There was a negative effect of Euro 917 thousand on the translation reserves in the equity of companies that prepare their financial statements in foreign currencies, as well as a positive effect of high inflation in Turkey following the adoption of IAS 29 in the amount of Euro 936 thousand.

Due to banks and other lenders

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024			as at 31 December 2023
	Current	Non-current	Total	Current	Non-current	Total
Due to banks	55,178	53,170	108,348	59,209	38,867	98,076
Due to other lenders	4,275	27,038	31,313	3,993	27,518	31,511
Total	59,453	80,208	139,661	63,202	66,385	129,587

The portion of payables due within 12 months relating to the item Payables due to banks and other lenders shows an increase of Euro 3,749 thousand, going from Euro 59,209 thousand as at 31 December 2023 to Euro 55,178 thousand as at 31 March 2024. This decrease was primarily caused by lower recourse to self-liquidating credit lines. Non-current payables to banks and other lenders due within 12 months show an increase of Euro 13,823 thousand, going from Euro 66,385 thousand as at 31 December 2023 to Euro 80,208 thousand as at 31 March 2024. This change is mainly related to the reclassification of the loan instalments and to the taking out of a new mortgage by the Parent Company during the period.

Provisions for risks and charges

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Opening balance	9,277	8,483
Provisions	308	1,872
Payments/resolutions	(87)	(993)
Translation differences	75	(85)
Closing balance	9,573	9,277
Of which current	1,722	1,783
Of which non-current	7,851	7,494

The item includes the provision for coverage of losses on equity investments for Euro 4,874 thousand, which primarily refers to the valuation through equity method of the investment in Shubhram Hospital Solutions Private Limited, and corresponds to the portion of the losses exceeding the value of the equity investment that will be covered in consideration of the commitments assumed 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 308 thousand, of which Euro 203 thousand relate to the losses attributable to the Servizi Italia Group recorded by the equity investment in Shubhram Hospital Solutions Private Limited.

Other non-current financial liabilities

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Payable for Steritek S.p.A. put option	468	465
Total	468	465

Trade payables

The item is broken down as follows:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Due to suppliers	77,801	79,631
Due to associates	3,189	3,298
Due to parent company	4,513	4,660
Due to companies under the control of the parent companies	495	42
Total	85,998	87,631

Other current payables

The table below provides a breakdown of other current payables:

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023
Deferred income and accrued expenses	559	1,372
Payables due to social security and welfare institutions	5,032	6,072
Due to employees	11,934	10,688
Employee/professional IRPEF (personal income tax) payable	2,131	2,142
Other payables	1,125	1,866
Total	20,781	22,140

The change in the item is mainly related to the reduction in payables due to social security and welfare institutions, as it represented the payable due as at 31 December 2023, including the amounts related to thirteenth-month pay and bonuses.

5.4 Note on the main changes in the income statement

Raw materials and consumables

As at 31 March 2024, the consumption of raw materials amounted to Euro 6,875 thousand, down by Euro 163 thousand compared to the previous period, mainly as a result of lower costs incurred for the purchase of disposable products and PPE, following the discontinuation of certain contracts in the Veneto area. The period also saw higher costs incurred for consumables, fuel, and spare parts, which were adversely affected by the ongoing price increase dynamics. Consumption also refers to the purchase of washing and chemical products and packaging, for which there was a decrease in costs due to a reduction in purchase prices and optimisation of the range of products used.

Costs for services

The item is broken down as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
External laundering and other industrial services	8,653	8,231
Travel and transport	4,316	4,202
Utilities	4,310	7,390
Administrative costs	991	870
Consortium and sales costs	1,577	1,496
Personnel expense	900	830
Maintenance	2,205	2,358
Use of third-party assets	874	781
Other services	351	512
Total	24,177	26,670

The item Cost for services decreased by 9.3% year-on-year, or Euro 2,493 thousand, from Euro 26,670 thousand in the first quarter of 2023 to Euro 24,177 thousand in the same quarter of 2024. The decrease is also seen in terms of impact on revenues, which fell from 36.8% in the first quarter of 2023 to 32.9% in the first quarter of 2024, mainly as a result of lower costs incurred for utilities, which show a decrease of Euro 3,080 thousand compared to the same period of the previous year. The item External laundering and other industrial services recorded an increase of Euro 422 thousand, mainly due to greater use of external laundry and other services, also following new tenders with a different logistics and production structure with respect to the comparison period. Travel and transport costs show an increase of Euro 114 thousand compared to 31 March 2023, mainly generated by the persistence of higher tariffs applied by suppliers and the higher volumes handled with respect to the comparison period.

Personnel expense

The item is broken down as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
Costs for directors' fees	273	309
Salaries and wages	16,322	15,716
Temporary work	1,422	1,094
Social security charges	5,437	5,118
Employee severance indemnity	934	936
Other costs	76	68
Total	24,464	23,241

Servizi Italia Group – Interim Report on Operations as at 31 March 2024 Page 21 of 25

The item Personnel expense went from Euro 23,241 thousand as at 31 March 2023 to Euro 24,464 thousand as at 31 March 2024, recording an increase of Euro 1,223 thousand. The increase is mainly attributable to the Parent Company, considering the salary increases related to the entry into force of the new national collective agreement, and to the Turkey and Brazil areas, due to the inflation adjustments applied. In terms of relative incidence, there was an increase of 1.3% compared to the first quarter of 2023.

		Units as of 31 March
	2024	2023
Executives	15	18
Middle managers	32	39
White-collar staff	388	365
Blue-collar staff	3,065	3,087
Total	3,500	3,509

Depreciation, amortisation and impairment

The item is broken down as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
Amortisation of intangible assets	227	299
Depreciation of property, plant and equipment	13,585	13,826
Impairment and provisions	147	285
Total	13,959	14,410

The item Depreciation, amortisation and impairment recorded a decrease compared to the same period of the previous year of Euro 451 thousand, from Euro 14,410 thousand in the first quarter of 2023 to Euro 13,959 thousand in the same period of 2024, and the relative incidence decreased as well, from 19.9% in the first quarter of 2023 to 19.0% in the first quarter of 2024.

Financial income and expense

Financial income is broken down as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
Bank interest income	10	3
Default interest	72	43
Interest income on loans to third-party companies	202	191
Other financial income	81	42
High inflation effect in Turkey	-	38
Exchange rate earnings	-	-
Total	365	317

Financial expenses are composed as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
Interest expense and bank commission	(1,955)	(1,053)
Interest and expense to other lenders	(196)	(200)
Financial expense on employee benefits	(41)	(52)

Servizi Italia Group – Interim Report on Operations as at 31 March 2024 Page 22 of 25

High inflation effect	(192)	-
Exchange rate losses	(15)	(153)
Other financial expenses	(948)	(592)
Total	(3,347)	(2,050)

Financial income increased from Euro 317 thousand as at 31 March 2023 to Euro 365 thousand as at 31 March 2024, showing a positive change of Euro 48 thousand.

Financial charges increased from Euro 2,050 thousand as at 31 March 2023 to Euro 3,347 thousand as at 31 March 2024, an increase of Euro 1,297 thousand mainly due to the increase in interest rates recorded with respect to outstanding loans from credit institutions in Italy and Turkey. Also note the reduction in exchange rate losses in the first quarter of 2024 due to the lower depreciation recorded primarily by the Turkish lira with respect to the comparison period. During the period, it was also noted the negative effect of the adjustments to non-monetary items deriving from the application of IAS 29 - Hyperinflation by the Turkish companies Ankateks Turizm İnşaat Tekstil Temizleme Sanayi ve Ticaret Ltd Şirketi and Ergülteks Temizlik Tekstil Ltd. Sti for Euro 192 thousand.

Current and deferred taxes

The item is broken down as follows:

(thousands of Euros)	from 1 January to 31 March
	2024	2023
Current taxes	391	359
Deferred tax (assets)/liabilities	230	(414)
Total	621	(55)

Taxes for the period are negative in the amount of Euro 621 thousand (positive for Euro 55 thousand as at 31 March 2023) and are mainly due to the recognition of current taxes, as well as the release to the income statement of deferred tax assets on the recovery of tax losses mainly attributable to the Parent Company.

5.5 Consolidated net financial position

(thousands of Euros)	31 March 2024	31 December 2023	31 March 2023
Cash and cash equivalents in hand	46	59	25
Cash at bank	4,296	4,672	4,542
Cash and cash equivalents	4,342	4,731	4,567
Current financial receivables	7,088	8,156	7,138
Current due to banks and other lenders	(59,453)	(63,202)	(80,277)
of which Financial liabilities under IFRS 16	(3,789)	(3,852)	(3,677)
Current net financial debt	(52,365)	(55,046)	(73,139)
Non-current due to banks and other lenders	(80,208)	(66,385)	(67,404)
of which Financial liabilities under IFRS 16	(26,945)	(27,518)	(28,866)
Non-current net financial debt	(80,208)	(66,385)	(67,404)
Net financial debt	(128,231)	(116,700)	(135,976)

The consolidated net financial position increased from Euro 116,700 thousand as at 31 December 2023 to Euro 128,231 thousand as at 31 March 2024, a positive change of Euro 11,530 thousand. The change in net financial debt as at 31 March 2024 compared to 31 December 2023 includes investments in materials, primarily textile linen products to be fed into the production process, for approximately Euro 15.4 million. The change, in addition to what has already been commented, is

mainly due to an increase in the average collection times and a simultaneous reduction in the average payment times recorded in the first quarter of 2024.

Also shown below is the total financial debt drawn up pursuant to the ESMA Recommendation of 4 March 2021 in which the value of "Other current financial liabilities" is recorded under the item "Current financial debt" and the value of "Other non-current financial liabilities", as well as the summary of the Group's direct and indirect financial debt is recorded under item "Trade and other non-current payables".

(thousands of Euros)	as at 31 March 2024	as at 31 December 2023	as at 31 March 2023
A. Cash and cash equivalents	4,342	4,731	4,567
B. Cash and cash equivalents	-	-	-
C. Other current financial assets	7,088	8,156	7,138
D. Cash and cash equivalents (A)+(B)+(C)	11,430	12,887	11,705
E. Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt)	(30,603)	(37,169)	(50,541)
F. Current portion of non-current borrowings	(29,267)	(26,449)	(29,750)
of which Financial liabilities under IFRS 16	(3,789)	(3,852)	(3,677)
G. Current financial debt (E) + (F)	(59,870)	(63,618)	(80,291)
H. Current net financial debt (G) - (D)	(48,440)	(50,731)	(68,586)
I. Non-currentfinancial debt (excluding the current portion and debt instruments)	(80,208)	(66,385)	(67,404)
of which Financial liabilities under IFRS 16	(26,945)	(27,518)	(28,866)
J. Debt instruments	-	-	-
K. Trade and other non-current payables	(468)	(465)	(855)
L. Non-current financial debt (I) + (J) + (K)	(80,676)	(66,850)	(68,259)
M. Net financial debt (H) + (L)	(129,116)	(117,581)	(136,845)

The Chairman of the Board of Directors

(Roberto Olivi)

––––––––––– o –––––––––––

The Financial Reporting Manager Angelo Minotta states pursuant to paragraph 2, Article 154 bis of the Consolidated Law on Finance that the accounting information presented in this document corresponds to the documented results, books and accounting entries. The Financial Reporting Manager

(Angelo Minotta)