FINANCIAL PRESENTATION

Sabaf | 27th March 2025

STAR CONFERENCE 2025

I. COMPANY PROFILE
II. LATEST STRATEGIC MOVES
III. FINANCIAL PERFORMANCE
IV. SUSTAINABILITY

COMPANY PROFILE

Sabaf Group: product range evolution in 4 Business Units

SINCE 2000, further expansion since 2019 SINCE 2022

HINGES

Ovens
Dishwashers
Washing machines
Refrigerators
Special applications
Small compartments
Catering appliances

Sabaf Group: evolution

5 acquisitions in the last 8 years 3 greenfield plants in the last 3 years

Sabaf Group: leading producer of components for household appliances and company evolution in 4 Business Units

Sabaf Group: industrial footprint

2018: 7 production plants
2024: 15 production plants (6 in Italy and 9 abroad)

SABAF TURKEY (2 PLANTS) (296 employees) Burners, valves, hinges and Electronics

OKIDA ELEKTRONIK (202 employees) Electronics for household appliances

SABAF APPLIANCE COMPONENTS (KUNSHAN) (8 employees) Wok burners

SABAF INDIA (35 employees) Valves and burners

SABAF S.P.A. (519 employees) Valves and thermostats Standard burners Special burners ARC S.R.L. (21 employees) Professional burners FARINGOSI-HINGES S.R.L. (44 employees) Oven hinges Dishwasher hinges CMI ITALY (2 PLANTS) (132 employees) Oven hinges Dishwasher hinges PGA (41 employees) Electronics for household appliances SABAF MEXICO (66 employees) MANSFIELD (152 employees) Oven hinges Washing machines hinges Refrigerators hinges

CMI POLAND (84 employees) Dishwasher hinges

SABAF BRASIL (117 employees) Standard burners Special burners

Burners

Why investing in Sabaf

Strategy for value creation

Sabaf Group Main shareholders

Cinzia Saleri S.a.p.A. Quaestio SGR Paloma Rheem Investments Fintel S.r.l. Treasury Shares 9.73 % Montinvest S.r.l.

Pietro Iotti, Sabaf CEO, owns 2.24% of voting rights

LATEST STRATEGIC MOVES

Latest strategic moves

Sabaf India

Sales start	2Q 2023
Investment	€ 5.2 million in 3 years
Division	Gas: production of valves and burners for the domestic market
Production capacity	€ 6 million (scalable)

Market characterized by:

strong growth
customization
competitive price requests
12M 2024: revenues € 2.3 million
2025: sales growth

Completion of the entire production process of valves by 1H 2025

Sabaf Mexico

Sales start	1H 2024
Investment	€ 12 million in 2021-2023
Division	Gas: production of burners for NA market
Production capacity	€ 9 million (scalable)

May 2024: start of sales to Mabe July 2024: start of sales to Whirlpool

Fast poduction ramp-up, working on 3 shifts

12M 2024: revenues € 3 million

Budget 2025: revenues € 7 million

Project start	2021
Sales start	1H 2024
Investment	About €6.2 million in R&D in the period 2021 – 2024

Sabaf has developed its own project know-how (proprietary patents, software and hardware)

Creation of innovative products which better meet manufacturers' needs and new consumer trends.

Implementation of new features (Assisted cooking additional functions: water boiling sensor and controlled frying) The project flexibility will enable Sabaf to offer customised products to its clients

The Group benefits from the expertise gained from the acquisitions of Okida and P.G.A. where part of the induction cooking components are produced

Team of more than 60 electronic engineers

Q2 2024: one of the major multinational groups started to produce under Sabaf license Q3 2024: delivery of samples to 9 customers for testing

Q4 2024 and Q1 2025: expected start of sales to many customers

FINANCIAL PERFORMANCE

Context analysis and Sabaf positioning

Market

Tariffs

Greater penetration of Turkish and Chinese players in the European market

Reduction in end-users purchasing power

The last 2 years highlighted the difficulty of some competitors, which could open opportunities for M&Aand allow us to gain market shares Competitors

The first economic policy measures taken by the new US administration have created international tensions, the effects of which are difficult to predict

Direct manufacturing presence in the USA (MEC in Ohio)
Sabaf Mexico's production is mainly intended for manufacturers in the Mexican territory
FCA delivery terms for customers
Turkey looks not to be impacted by US duties

The geographical diversification of Sabaf's industrial footprint mitigates the risks associated with tariffs/trade barriers, thanks to the presence of production plants in all key reference markets

2024 | Market trends

Europe

• After several quarters characterized by market weakness, signs of recovery are emerging. Industry shipments +1% in 4Q 2024

North America

• 2Q, 3Q and 4Q 2024 industry shipments were positive (+7 in 4Q%). Resilient demand, but with an increasing shift towards lower prices

Source: Electrolux 4Q 2024 presentation

Strong growth in Latin America
Asia is recovering compared to 2023
Middle East and Africa affected by the geopolitical picture

2024 | EMEA Market trend vs. Sabaf Group

MARKET EMEA*


	2024		2024
Sales - Units	+1.8%	Adjusted sales in €	+7.7%

Good performance of Gas and Hinges divisions
Market share increase

2024 | Sabaf Group highlights

In this context Sabaf reported strong results

Direct presence in emerging countries
Product range expansion
Product innovation

allow the Group to gain market share and outperform the market

Thanks to its global industrial footprint and available production capacity, Sabaf is ready to respond to the expected recovery after a period of market weakness

	12M 2024	12M 2023	∆ vs. 2023
REVENUE adj	€ 277 mln		+15.8%
(on like for like basis) a - -	263,3 mln €	€ 239 mln	+10.1%
EBITDA adj	€ 40,4 mln		+22.2%
(on like for like basis) a - -	€ 38,8 mln	€ 33 mln	+17.4%
EBITDA MARGIN % adj	14.6%
(on like for like basis) a - -	14.7%	13.8%
EBIT MARGIN adj	€ 21.2 mln		+21.2%
(on like for like basis) a - -	20.2 mln €	€ 17.5 mln	+15.7%

Yearly adjusted¹ revenues and EBITDA

¹Adjusted income statement: results exclude the impact of the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) and, only for 2023 data the start-up costs of Sabaf India, Sabaf Mexico and the Induction division. This representation allows a better understanding of the Group's performance and of its comparison with previous periods.

Adjusted income statement¹ - 12 months 2024

€ x 000	12 MONTHS 2024		12 MONTHS 2023		% Δ 12M 24 - 12M 23
Revenue Other income Total operating and income revenue	276 965 , 10 739 , 287 704 ,	100% 3.9%	239 086 , 9 036 , 248 122 ,	100% 3.8%	+15.8%
Consumption Personnel costs Other operating costs EBITDA	(129 391) , (69 225) , (48 690) , 40 398 ,	(46.7%) (25.0%) (17.6%) 14.6%	(116 008) , (57 809) , (41 258) , 33 047 ,	(48.5%) (24.2%) (17.3%) 13.8%	+22.2%
Depreciation Gain/losses on fixed assets Write-downs/write-backs of non-current assets EBIT	(19 089) , 1 (106) 21 204 ,	(6.9%) 0.0% (0.0%) 7.7%	(17 071) , 1 520 , - 17 496 ,	(7.1%) 0.6% 0.0% 7.3%	+21.2%
Non financial expense Exchange gains and losses rate Profits and losses from equity investments EBT	(2 278) , 1 351 , (8) 20 269 ,	(0.8%) 0.5% (0.0%) 7.3%	(3 334) , (2 169) , - 11 993 ,	(1.4%) (0.9%) 0.0% 5.0%	+69.0%
Income taxes NET PROFIT FOR THE PERIOD	(3 354) , 16 915 ,	(1.2%) 6.1%	2 438 , 14 431 ,	1.0% 6.0%	+17.2%
Minority interests PROFIT TO GROUP ATTRIBUTABLE THE	965 15 950 ,	0.3% 5.8%	277 14 154 ,	0.1% 5.9%	+12.7%

Income statement reconciliation reported – adjusted¹ - 12 months 2024

€ x 000	12 MONTHS	2024	12 MONTHS	2023	% Δ 12M24 - 12M23
Revenue	285 091 ,	0% 100	237 949 ,	0% 100	8% +19
Start-up sales	-		(23)
Hyperinflation - Turkey	(8 126) ,		1 160 ,
Adjusted revenue	276 965 ,	100.0%	239 086 ,	100.0%	+15.8%

EBITDA	43 704 ,	15 3%	29 612 ,	12 4%	+47 6%
Start-up costs	-		2 649 ,
Hyperinflation - Turkey	(3 306) ,		786
Adjusted EBITDA	40 398 ,	14.6%	33 047 ,	13.8%	+22.2%

EBIT	17 739 ,	2% 6	11 062 ,	6% 4	4% +60
Start-up costs	-		3 724 ,
Hyperinflation - Turkey	3 465 ,		2 710 ,
Adjusted EBIT	21 204 ,	7.7%	17 496 ,	7.3%	+21.2%

result Net	6 928 ,	4% 2	3 103 ,	3% 1	3% +123
Start-up costs	-		3 530 ,
Hyperinflation - Turkey	9 022 ,		7 521 ,
Adjusted Net result	15 950 ,	5.8%	14 154 ,	5.9%	+12.7%

Reported results

Adjusted results

Adjusted sales by market

	MONTHS 12 2024	MONTHS 12 2023	∆
Europe	79	71	+10
(excluding	036	734	2%
Turkey)	,	,
Turkey	70	63	1%
	459	419	+11
	,	,
North America	60 088 ,	47 697 ,	0% +26
South America	35 654 ,	27 858 ,	0% +28
Africa and Middle East	15 190 ,	17 762 ,	5% -14
Asia	16	10	8%
and	538	616	+55
Oceania	,	,
Total	276	239	8%
	965	086	+15
	,	,

Adjusted sales by product

€ x 000

	12 MONTHS 2024	12 MONTHS 2023	∆
Gas	164,081	144,010	9% +13
Hinges	86,627	70,410	0% +23
Electronics	25,783	24,666	5% +4
Induction	474	-	n.a.
Total	276,965	239,086	8% +15

Balance Sheet - Reported

emarket sdir scorage
CERTIFIED

€ 000 x	31/12/2024	31/12/2023
Fixed assets	177 663 ,	181 167 ,
Inventories Trade receivables Tax receivables Other receivables current Trade payables Tax payables	63 132 , 64 837 , 9 909 , 4 322 , (41 681) , (4 794) ,	61 985 , 826 55 , 11 722 , 3 868 , (42 521) , (3 025) ,
Other payables working capital Net	(17 478) , 78 247 ,	(16 007) , 71 848 ,
Provisions for risks and severance indemnity	(8 285) ,	(9 477) ,
Capital Employed	247 625 ,	243 538 ,
Equity debt Net	173 744 , 73 881 ,	170 388 , 73 150 ,
Sources of finance	247 625 ,	243 538 ,

At 31 December 2024, the impact of the net working capital on revenue was 27.4% compared to 30.2% at the end of 2023

Net financial debt at 31 December 2024 €73.9 million (€73.2 million at 31 December 2023) includes €11.5 million related to the recognition of the put option granted to MEC minorities

Cash flow statement

€ 000 x	MONTHS 12 2024	MONTHS 12 2023
Cash the beginning of the period at	36 353 ,	20 923 ,
Net profit Depreciation Other income adjustments statement	7 893 , 22 932 , 11 936 ,	3 380 , 20 066 , 5 229 ,
Change in working capital net - Change in inventories - Change in receivables - Change payables in	(3 520) , (9 745) , (484) (13 749) ,	4 079 , 7 375 , 2 438 , 13 892 ,
Other changes in operating items	(1 979) ,	(2 715) ,
Operating cash flow	27 033 ,	39 852 ,
Investments of disposals , net Cash Flow Free	(14 706) , 12 327 ,	(16 942) , 22 910 ,
Cash flow from financial activity Own shares buyback Dividends Share capital increase Mansfield aquisition PGA acquisition Forex	(7 899) , (211) (8 663) , - - - (1 266) ,	(14 208) , (462) - 17 312 , (8 325) , (783) (1 014) ,
financial flow Net	(5 712) ,	15 430 ,
Cash the end of the period at	30 641 ,	36 353 ,

Dividends: on 28 May 2024 distribution of a gross ordinary dividend of €0.54 per share

Dividend 2025

2025 Dividend proposal

The Board of Directors will propose to the shareholders the distribution of a gross ordinary dividend of €0.58 per share (Cash out ~ € 7.2 million)

A gross dividend of €0.54 per share was paid in 2024

Outlook

Signs of recovery

After three years of widespread weakness in demand, the household appliances market appears to be heading for a gradual recovery in volumes, partly due to the stimulus in consumption and residential investment resulting from lower interest rates
There are, however, some reasons for uncertainty. The first economic policy measures taken by the new US administration have created international tensions, the effects of which are difficult to predict. Sabaf's global production structure, with the direct manufacturing presence in the United States enabled by the recent acquisition of MEC, mitigates the risks associated with the introduction of tariffs.

Positive Outlook for 2025

The Group expects sustained growth in 2025 as the benefits of the strategy outlined in the Business Plan (diversification of the offering, strengthening of the industrial footprint, development of group synergies and growth through acquisitions) is further materializing
In particular, an important contribution is expected from sales in North America, even thanks to the Mexican production plant that is constantly increasing volumes and expanding its product range. For all divisions, sales of new products - which will be partly customised for some customers - will begin and should help to strengthen market shares. The orders received in the first part of the year confirm this trend.
The Group is strengthening its efforts to improve margins through further efficiency measures, innovative projects and adjustments of price lists.

SUSTAINABILITY

Solar power plant

Total CapEx: approximately €2.3 million
Will enable the production of electricity using solar photovoltaic technology, significantly contributing to the goal of climate change mitigation
Allows self-production of an estimated amount equal to 10-15% of the site's current energy consumption
Emissions reduction: ~ 10-15% (Scope 2 emissions from purchased and consumed electricity)
Saving: ~ € 0.5 million / year
The solar power plant will be operational form July ²⁰²⁵

Sabaf: a sustainable business

Sustainability in the Business plan 2024 - 2026

Sabaf's strategy and governance model are aimed towards ensuring long-term sustainable growth. For Sabaf, sustainability is primarily based on sharing values with its stakeholders; compliance with common values increases mutual trust and encourages knowledge development " "

ESG Performance - Corporate Governance

Remuneration policy

Environmental impact of different cooking fuels 1/3

About 30% of people on our planet, i.e. 2.5 billion people, are still relies on solid biomass fuels for cooking (wood, charcoal, animal dung, crop residues)

This population is mainly concentrated in Sub-Saharan Africa, where the unavailability of clean fuels affects 82% of the population, but significant percentages characterize also Central Asia, India, China, South-East Asia and Latin America

In addition to being harmful to the environment, the pollution produced by traditional fuels has important consequences on the health of users and families

5.5 billion people use fossil fuels (mainly natural gas and LPG) or electricity for cooking

Environmental impact of different cooking fuels 2/3

Environmental impact of different cooking fuels¹

The environmental impact was measured using a scientific standard method (the ReCiPE 2016), which is based on 3 impact categories:

damage to human health
damage to ecosystem quality
damage to resource availability

The environmental impact was highest in the case of coal cooking appliances (112) and lowest for LPG and methane cooking appliances (5 and 5.2 respectively).

Electric cooking appliances, with an impact of 9, highlighted an environmental impact equal to 180% of that deriving from gas hobs

Cooking through a gas hob instead of using firewood as cooking fuel, reduces the environmental impact by 80%

1 https://www.itjfs.com/index.php/ijfs/article/view/2170

Italian Journal of Food Science, 2022 – Environmental impact of the main household cooking systems – A survey, 2022 Alessio Cimini and Mauro Moresi, Università della Tuscia

Environmental impact of different cooking fuels 3/3

From the perspective of sustainable development, the reduction of the environmental impact resulting from cooking food will necessarily have to go through a dual strategy

Promote access to energy sources with lower impact for the population that still uses solid fuels

Favor electric cooking only where and when the energy production mix is characterized by a predominant component of green energy

An induction hob causes lower CO² emissions than a gas hob only if the electricity is produced with a % of renewable sources (and/or nuclear energy) higher than 70%

The Sabaf Group pursue a business development path consistent with the ecological transition plans:

Sabaf is investing to promote diffusion of gas cooking appliances in emerging countries, replacing traditional cooking methods with much higher environmental impact
At the same time, Sabaf is investing to enter the sector of induction cooking, the most efficient form of electric cooking, which is constantly growing in the European market, although such trend has slowed down in the last 3 years

A possible revolution - Hydrogen burners

The Sabaf Group actively takes part in research projects aimed at evaluating the feasibility of replacing natural gas (methane) with hydrogen as a source for gas cooking appliances

Burners operating with 100% hydrogen: laboratory tests and prototypes have confirmed the technical feasibility of these products

The possibility to use hydrogen on a large scale as a fuel has still to overcome important technological challenges, both in terms of its production and distribution

A possible solution in a relatively short time is the use of a mix of methane and hydrogen, through the existing distribution network

Hy4Heat project, promoted by the British government, concluded in 2022 with positive results

Pilot project in collaboration with the Colombian client Industrias Haceb → European Union Sustainability certification LCBA (Low Carbon and Circular Economy Business Action)

DISCLAIMER

Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially.

The Company's business is in the domestic appliance industry and its outlook is predominantly based on its interpretation of what it considers to be the key economic factors affecting this business. Forward-looking statements with regard to the Group's business involve a number of important factors that are subject to change, including: the many interrelated factors that affect consumer confidence and worldwide demand for durable goods; general economic conditions in the Group's markets; actions of competitors; commodity prices; interest rates and currency exchange rates; political and civil unrest; and other risks and uncertainties.

Pursuant to Article 154/2, paragraph 2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), the company's Financial Reporting Officer Gianluca Beschi declares that the financial disclosure contained in this financial presentation corresponds to the company's records, books and accounting entries.

For further information, please contact

Gianluca Beschi [email protected] Elena Gironi [email protected]

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