GEFRAN GROUP

Interim report as at 31 March 2025

Gefran Group 1

Corporate Bodies 4
Key consolidated income statement and statement of financial position figures 5
Group Structure 6
Gefran Group Activities 7
Information on shareholders and stock performance 7
Alternative performance indicators 10
Disclosure simplification 11
Group performance in the first quarter of 2025 11
Reclassified consolidated statement of financial position as at 31 March 2025 15
Consolidated cash flow statement as at 31 March 2025 17
Investments 19
Human resources 20
Significant events in the first quarter of 2025 21
Significant events following the close of the first quarter of 2025 22
Outlook 23
Own shares 23
Dealings with related parties 24
Business areas 26
1. Sensors 26
2. Automation components 28
Consolidated financial statements 30
Specific explanatory notes to the accounts 35
Annexes 49
Declaration of the executive in charge of financial reporting 54

Corporate Bodies

Board of Directors

Vice Chairman Andrea Franceschetti Chief Executive Officer Marcello Perini Director Enrico Zampedri (*) Director Cristina Mollis (*) Director Giorgio Metta (*) Director Luigi Franceschetti

Chairwoman Maria Chiara Franceschetti Vice Chairwoman Giovanna Franceschetti Director Alessandra Maraffini (*)

(*) Independent directors pursuant to the Consolidated Law on Finance (TUF) and the Corporate Governance Code

Board of Statutory Auditors

Chairman Giorgio Alberti Standing auditor Roberta dell'Apa Standing auditor Luisa Anselmi

Deputy auditor Simona Bonomelli Deputy auditor Simonetta Ciocchi

Control and Risks Committee

Alessandra Maraffini
Luigi Franceschetti
Enrico Zampedri

Appointments and Remuneration Committee

Cristina Mollis
Giorgio Metta
Enrico Zampedri

Sustainability Committee

Giovanna Franceschetti
Marcello Perini
Cristina Mollis

External auditor

Deloitte & Touche S.p.A.

With the approval of the annual financial statements ending 31 December 2024, the External Auditor PricewaterhouseCoopers S.p.A., appointed for the period 2016-2024, ceased to hold office. On 23 April 2024, the ordinary Shareholders' Meeting of Gefran S.p.A. engaged the External Auditor Deloitte & Touche S.p.A. to audit the annual financial statements of Gefran S.p.A., as well as the consolidated financial statements (including the Sustainability Report) and the consolidated halfyearly report of the Gefran Group for a period of nine years (2025-2033), i.e. until the approval of the financial statements for 2033, in accordance with Italian Legislative Decree no. 39/2010.

Key consolidated income statement and statement of financial position figures

Group income statement highlights

(Euro /000)	31 March 2025		31 March 2024
Revenues	36,442	100.0%	34,156	100.0%
Profit	7,836	21.5%	7,128	20.9%
EBIT	5,867	16.1%	5,107	15.0%
Profit (loss) before tax	5,623	15.4%	5,164	15.1%
Group net profit (loss)	4,085	11.2%	3,808	11.1%

Group statement of financial position highlights

(Euro /000)	31 March 2025	31 December 2024
Invested capital from operations	73,170	65,183
Net working capital	24,980	20,216
Shareholders' equity	102,671	99,338
Net debt relating to operations	29,501	34,155

(Euro /000)	31 March 2025	31 March 2024

Operating cash flow from operations	1,472	2,963
Investments in operations	1,220	1,390

Group Structure

Gefran Group Activities

The Gefran Group's business is centred around two main business areas: industrial sensors and automation components.

Design, production and commercialization activities are carried out through various sales channels, offering a complete range of "tailor-made" and "turnkey" products and solutions in multiple automation sectors. About 69% of revenues are generated abroad.

Sensors

The sensors business offers a complete range of products for measuring four physical parameters of position, pressure, force and temperature - which are used in many industrial sectors.

Gefran stands out for its technological leadership, creating in-house the primary elements, offering a complete range that is unique in the world and occupying leading positions worldwide for some product families. The sensors business generates about 77% of its revenues abroad.

Automation components

The automation components business develops around three main product lines that are widely used in the control of industrial processes: instrumentation, power control and automation platforms (operator panels, PLC, I/O modules). In addition to the supply of products, Gefran offers its customers the possibility of designing the entire automation solution, providing "tailor-made" and "turnkey" solutions, thanks to a strategic partnership both during the design and production stages.

Gefran stands out for its expertise in hardware and software acquired in over thirty years of experience. Gefran is one of the main Italian manufacturers in these product lines and generates around 46% of its business revenues through exports.

Information on shareholders and stock performance

On 31 March 2025, the subscribed and paid-up share capital was 14,400,000.00 Euro, divided into 14,400,000 ordinary shares, with a nominal value of 1.00 Euro per share. No further financial instruments have been issued.

STRUCTURE OF SHARE CAPITAL
Type of No. of % of share Rights and Listed shares shares capital obligations
Ordinary shares	14,400,000	100	Euronext STAR MILAN	ordinary

Gefran S.p.A. Shareholder Structure

Parent company Gefran S.p.A. has been listed on the Milan Stock Exchange since 9 June 1998, and in 2001 joined the "STAR" (Segmento Titoli con Alti Requisiti) segment of the Automated Stock Market for small to mid-sized companies that meet specific transparency, liquidity and corporate governance requirements. On 31 January 2005 this segment was renamed ALL STARS, taking on the name FTSE Italia STAR following the 1 June 2009 merger of Borsa Italiana with the London Stock Exchange before being given its current name, Euronext STAR Milan.

The performance of the stock and volumes traded in the last 12 months are summarised below:

Alternative performance indicators

In addition to the standard financial schedules and indicators required under IFRS, this document includes some reclassified schedules and alternative performance indicators. These are intended to enable a better assessment of the Group's economic and financial management. However, these tables and indicators must not be considered as a substitute for those required under IFRS.

Specifically, the alternative indicators used in the notes to the income statement are:

Added value: the direct margin resulting from revenues, including only direct materials, gross of other production costs, such as personnel costs, services and other miscellaneous costs;
EBITDA: this is EBIT before depreciation/amortisation and impairment. The purpose of this indicator is to present the Group's operating profitability before the main non-monetary items;
EBIT: operating result before financial management and taxes. The purpose of this indicator is to present the Group's operating profitability.

Alternative indicators used in the notes to the reclassified statement of financial position are:

Net non-current assets: the algebraic sum of the following items in the statement of financial position:
- o Goodwill
- o Intangible assets
- o Property, plant, machinery and tools
- o Shareholdings valued at equity
- o Equity investments in other companies
- o Receivables and other non-current assets
- o Deferred tax assets
Working capital: the algebraic sum of the following items in the statement of financial position:
- o Inventories
- o Trade receivables
- o Trade payables
- o Other assets
- o Tax receivables
- o Current provisions
- o Tax payables
- o Other liabilities
Net invested capital: the algebraic sum of net fixed assets, working capital and provisions
Net financial position: the algebraic sum of the following items:
- o Medium to long-term financial payables
- o Short-term financial payables
- o Financial liabilities for derivatives
- o Financial assets for derivatives
- o Non-current financial assets
- o Cash and cash equivalents and short-term financial receivables

Disclosure simplification

On 1 October 2012, the Board of Directors of Gefran S.p.A. resolved to make use of disclosure simplification provided for in Article 70, paragraph 8, and Article 71, paragraph 1-bis, of Consob Regulation no. 11971/1999 as amended.

Group performance in the first quarter of 2025

The income statement for the first quarter of 2025 is shown below, in comparison with the income statement for the same period in the fiscal year 2024.

		1Q 2025	1Q 2024	Change 2025-2024
	(Euro /000)	Total	Total	Value	%

a	Revenues	36,442	34,156	2,286	6.7%
b	Increases for internal work	397	474	(77)	-16.2%
c	Consumption of materials and products	10,152	10,081	71	0.7%
d	Added Value (a+b-c)	26,687	24,549	2,138	8.7%
e	Other operating costs	6,155	5,538	617	11.1%
f	Personnel costs	12,696	11,883	813	6.8%
g	EBITDA (d-e-f)	7,836	7,128	708	9.9%
h	Depreciation, amortisation and impairment	1,969	2,021	(52)	-2.6%
i	EBIT (g-h)	5,867	5,107	760	14.9%
l	Gains (losses) from financial assets/liabilities	(248)	55	(303)	550.9%
m	Gains (losses) from shareholdings valued at equity	4	2	2	100.0%
n	Profit (loss) before tax (i±l±m)	5,623	5,164	459	8.9%
o	Taxes	(1,538)	(1,356)	(182)	-13.4%
p	Group net profit (loss) (n±o)	4,085	3,808	277	7.3%

Revenues in the first quarter of 2025 amounted to 36,442 thousand Euro, as compared to 34,156 thousand Euro in the same period of the previous year, up by 2,286 thousand Euro (equal to 6.7%). It should be noted that the exchange rate effect is negligible and thus does not have a significant impact on the change.

Analysing the order intake for the first quarter of 2025, compared to the figure for the same period in 2024, there was an increase (overall 3.8%), driven by an increase in orders collected for the sensors business (+6,8%). For the automation components business, order intake was slightly lower than the first quarter of the previous year (-1.2%).

The backlog at the end of the first quarter reflects an increase compared to the figure at 31 December 2024 (+5.1%) though a decrease when compared to the same figure at 31 March 2024 (-7.4%).

The table below presents a breakdown of revenues in the first quarter by geographical region:

(Euro /000)	1Q 2025		1Q 2024		Change 2025-2024
	Value	%	Value	%	Value	%

Italy	11,427	31.4%	11,081	32.4%	346	3.1%
European Union	10,020	27.5%	8,972	26.3%	1,048	11.7%
Europe non-EU	1,001	2.7%	991	2.9%	10	1.0%
North America	3,381	9.3%	3,023	8.9%	358	11.8%
South America	1,640	4.5%	1,617	4.7%	23	1.4%
Asia	8,794	24.1%	8,331	24.4%	463	5.6%
Rest of the world	179	0.5%	141	0.4%	38	27.0%
Total	36,442	100%	34,156	100%	2,286	6.7%

The breakdown of revenues for the quarter by geographical region shows good performance in all areas in which the Group operates, with double-digit percentage increases compared to the figure for the first quarter of 2024 in Europe (overall +10.6%). Revenues increased also in America (overall +8.2%), Asia (+5.6%) and the national market (+3.1%).

The breakdown of revenues for the first quarter by business area is presented below in comparison with the same period in the previous year:

(Euro /000)	1Q 2025		1Q 2024		Change 2025-2024
	Value	%	Value	%	Value	%

Sensors	23,757	65.2%	21,386	62.6%	2,371	11.1%
Automation components	14,764	40.5%	14,595	42.7%	169	1.2%
Eliminations	(2,079)	-5.7%	(1,825)	-5.3%	(254)	13.9%
Total	36,442	100%	34,156	100%	2,286	6.7%

Compared to the previous first quarter, revenues from the sensors segment increased overall by 11.1% in all the geographical regions reached by this business. As regards the automation components segment, growth was more limited (1.2%), essentially confirming the trend of the previous year. For further details, see the Business areas section.

Increases for internal work in the first quarter of 2025 amounted to 397 thousand Euro, down by 77 thousand Euro compared with the figure for the same period in the previous year. This item mainly represents the new product development costs incurred in the period that have been capitalised.

Added value in the quarter amounted to 26,687 thousand Euro (24,549 thousand Euro in the same quarter in 2024), corresponding to 73.2% of revenues and higher than the figure for 31 March 2024 (+1.4%). The growth in added value totals 2,138 thousand Euro, is mainly due to higher revenues and higher margins and is related to the different product and geography mix compared to the same period in the previous year.

Other operating costs in the first quarter of 2025 amounted to 6,155 thousand Euro, an increase of 617 thousand Euro over the figure for the first quarter of 2024, absorbing 16.9% of revenues (16.2% in the same quarter in the previous year). The change is the result of higher costs for professional and consulting services (especially administrative and management consultancy), as well as for advertising and trade fairs, travel, and personnel training and search costs.

Personnel costs in the quarter, equal to 12,696 thousand Euro, were 813 thousand Euro higher than in the comparative period of the previous year, when they totalled 11,883 thousand Euro. The percentage of revenues was 34.8% (34.8% also in Q1 2024). The increase in these costs (in absolute terms), compared to Q1 2024, is the result of workforce increase: the average number of employees in the first quarter of 2025 was 710 compared to 670 in the same period of the previous year. For further details, see the Human resources section.

EBITDA in the first quarter of 2025 was positive by 7,836 thousand Euro (7,128 thousand Euro in the same quarter of 2024), corresponding to 21.5% of revenues (20.9% of revenues in the same quarter of 2024), which was 708 thousand Euro higher than in the same quarter of the previous year. The higher added value generated by higher sales compared to Q1 2024 was partially offset by higher operating costs.

The item depreciation, amortisation and impairment totalled 1,969 thousand Euro in the quarter, as compared with 2,021 thousand Euro in the same period in the previous year, a decrease of 52 thousand Euro.

EBIT in the first quarter of 2025 was positive at 5,867 thousand Euro (16.1% of revenues), compared with 5,107 thousand Euro in the same period of 2024 (15.0% of revenues), an increase of 760 thousand Euro. The change is essentially the result of the same dynamics illustrated for EBITDA.

Losses from financial assets/liabilities in the first quarter of 2025 totalled 248 thousand Euro (in the first quarter of 2024, income totalling 55 thousand Euro was posted), and included:

financial income of 273 thousand Euro, including 269 Euro deriving from liquidity management (overall comprising 335 thousand Euro in the first quarter of 2024);
financial charges linked with the Group's indebtedness, totalling 191 thousand Euro, down over the first quarter of 2024 (totalling 321 thousand Euro);
exchange losses from foreign currency transactions of 308 thousand Euro (the figure for the first quarter of the previous year was positive at 32 thousand Euro).

Gains from shareholdings valued at equity reflect the results reported by Axel S.r.l. and amount to 4 thousand Euro. Gains in the first quarter of 2024 totalled 2 thousand Euro.

Taxes had a total negative balance of 1,538 thousand Euro in the quarter (as compared to a total negative balance of 1,356 thousand Euro in the first quarter of 2024). They consist of:

negative current taxes of 1,595 thousand Euro (negative for the amount of 1.489 thousand Euro in the first quarter of 2024);
deferred tax assets and liabilities, on the whole positive by 57 thousand Euro (positive by 133 thousand Euro in the first quarter of the previous year).

The Group net profit in the first quarter of 2025 was positive at 4,085 thousand Euro, compared with a net profit of 3,808 thousand Euro as at 31 March 2024. The change, positive by 277 thousand Euro, pertains to the EBIT increase, partially offset by financial and tax operations.

Reclassified consolidated statement of financial position as at 31 March 2025

The Gefran Group's reclassified consolidated statement of financial position as at 31 March 2025 may be broken down as follows:

	31 March 2025			31 December 2024
(Euro /000)	Value	%	Value	%

Intangible assets	13,266	18.1	13,330	20.5
Tangible assets	40,557	55.4	41,368	63.5
Other non-current assets	9,090	12.4	5,058	7.8
Net non-current assets	62,913	86.0	59,756	91.7

Inventories	16,307	22.3	15,747	24.2
Trade receivables	28,029	38.3	23,264	35.7
Trade payables	(19,356)	(26.5)	(18,795)	(28.8)
Other assets/liabilities	(10,365)	(14.2)	(10,460)	(16.0)
Working capital	14,615	20.0	9,756	15.0
Provisions for risks and future liabilities	(1,258)	(1.7)	(1,265)	(1.9)
Deferred tax provisions	(899)	(1.2)	(933)	(1.4)
Employee benefits	(2,201)	(3.0)	(2,131)	(3.3)

Net invested capital	73,170	100.0	65,183	100.0
Shareholders' equity	102,671	140.3	99,338	152.4
Non-current financial payables	15,039	20.6	16,269	25.0
Current financial payables	5,176	7.1	5,173	7.9
Financial payables for IFRS 16 leases (current and non-current)	3,824	5.2	3,859	5.9
Financial liabilities for derivatives (current and non-current)	264	0.4	311	0.5
Financial assets for derivatives (current and non-current)	(24)	(0.0)	(34)	(0.1)
Other non-current financial investments	(104)	(0.1)	(104)	(0.2)
Cash and cash equivalents and current financial receivables	(53,676)	(73.4)	(59,629)	(91.5)
Net debt relating to operations	(29,501)	(40.3)	(34,155)	(52.4)
Total sources of financing	73,170	100.0	65,183	100.0

Net non-current assets as at 31 March 2025 totalled 62,913 thousand Euro, as compared with 59,756 thousand Euro as at 31 December 2024. The main changes are indicated below:

intangible assets, equal to 13,266 thousand Euro, decreased overall by 64 thousand Euro. This change includes the capitalisation of development costs (376 thousand Euro) and new investments (105 thousand Euro), as well as decreases due to amortisation in the period (426 thousand Euro). The change in exchange rates had a negative impact on the item amounting to 116 thousand Euro overall;
tangible assets, equal to 40,557 thousand Euro, decreased compared to 31 December 2024 by 811 thousand Euro. Investments during the first three months of 2025 (739 thousand Euro) were offset by depreciation in the period (1,212 thousand Euro). This item also includes the value of the right-of-use assets recognised in accordance with IFRS 16. The total increased, compared to the closing figure of the previous year, following the renewals or signing of new contracts (333 thousand Euro), offset by depreciation (331 thousand Euro) and decreases

due to advance termination of contracts (15 thousand Euro). Lastly, the net effect of exchange-rate changes was negative at 327 thousand Euro overall;

other non-current assets at 31 March 2025 amounted to 9,090 thousand Euro (5,058 thousand Euro at 31 December 2024), up by 4,032 thousand Euro.

Working capital as at 31 March 2025 totalled 14,615 thousand Euro, compared to 9,756 thousand Euro as at 31 December 2024, reflecting a total net increase of 4,859 thousand Euro overall. The main changes are illustrated below:

inventories changed from 15,747 thousand Euro on 31 December 2024 to 16,307 thousand Euro on 31 March 2025, a net increase of 560 thousand Euro. There was a net decrease in raw materials stocks (479 thousand Euro), against an increase in semi-finished products and finished products (540 thousand Euro and 499 thousand Euro, respectively), to meet requests for delivery to customers scheduled for the following quarter; the change includes the exchange rate effect, which was negative overall by 117 thousand Euro;
trade receivables amounted to 28.029 thousand Euro, an increase of 4.765 thousand Euro compared to 31 December 2024, reflecting the growth in revenues; the Group analyses receivables in a timely manner, considering various factors (geographical region, business area, solvency of individual customers). These checks have not identified any positions that might jeopardise their collectability;
trade payables totalled 19,356 thousand Euro, up by 561 thousand Euro compared to 31 December 2024;
other net assets and liabilities as at 31 March 2025 were negative by a total of 10,365 thousand Euro (negative by 10,460 thousand Euro as at 31 December 2024). They include, among other items, payables to employees and social security institutions, as well as direct and indirect tax receivables and payables.

The provisions for risks and future liabilities totalled 1,258 thousand Euro and were essentially aligned with the figure for 31 December 2024, when they amounted to 1,265 thousand Euro. This item includes provisions for legal disputes (specifically, a lawsuit is currently pending against a former employee of the subsidiary Gefran Brasil), miscellaneous risks and the provision for product warranties.

Employee benefits amounted to 2.201 thousand Euro, compared with 2.131 thousand Euro on 31 December 2024. This item includes the post-employment benefit reserve (2,131 thousand Euro), in addition to residual payables to employees who have signed agreements that protect the Company from competing activities (so-called Non-competition agreements, 70 thousand Euro).

Shareholders' equity as at 31 March 2025 amounted to 102,671 thousand Euro, up 3,333 thousand Euro over the end of the 2024 fiscal year. The increase is mainly related to the positive result for the period, equal to 4,085 thousand Euro, reduced only in part by the change in the translation reserve, negative by 769 thousand Euro.

The net financial position at 31 March 2025 was positive and amounted to 29.501 thousand Euro, compared with the figure recorded at the end of the previous year, which was positive by 34.155 thousand Euro.

The total comprises net short-term cash and cash equivalents of 47,268 thousand Euro and net medium/long-term debt of 17,767 thousand Euro.

This item also includes the effect of applying IFRS 16, leading to the recording of financial payables in the amount of 3,824 thousand Euro as at 31 March 2025, of which 1,232 thousand Euro reclassified as current and 2,592 thousand Euro as non-current (overall 3,859 thousand Euro as at 31 December 2024, of which 1,195 thousand Euro reclassified as current and 2,664 thousand Euro as medium/long-term).

No new loans were arranged during the first three months of 2025.

The change in net financial position, down by 4,654 thousand Euro compared to 31 December 2024, mainly reflects the positive cash flow generated by ordinary operations (1,472 thousand Euro), as fully absorbed by the disbursements for technical investments made during the first three months of the year (1,220 thousand Euro), and for the acquisition, described in Significant events in the first quarter of 2025, of the shareholding in 40Factory S.r.l. (4 thousand Euro), as well as by the payment of taxes and rentals (overall 1,197 thousand Euro).

(Euro /000)	31 March 2025	31 December 2024	Change

Cash and cash equivalents and current financial receivables	53,676	59,629	(5,953)
Current financial payables	(5,176)	(5,173)	(3)
Current financial payables for IFRS 16 leases	(1,232)	(1,195)	(37)
(Debt)/short-term cash and cash equivalents	47,268	53,261	(5,993)
Non-current financial payables	(15,039)	(16,269)	1,230
Non-current financial payables for IFRS 16 leases	(2,592)	(2,664)	72
Non-current financial liabilities for derivatives	(264)	(311)	47
Non-current financial assets for derivatives	24	34	(10)
Other non-current financial investments	104	104	-
(Debt)/medium-/long-term cash and cash equivalents	(17,767)	(19,106)	1,339

Net financial position	29,501	34,155	(4,654)

This item is analysed in detail below:

It should be noted that the "Net financial position" table includes "Other non-current financial investments" (totalling 104 thousand Euro) which comprise, among other things, the item "Financial pre-paid expenses" in the amount of 4 thousand Euro (4 thousand Euro at 31 December 2024). Net of this item and for the purposes of Regulation (EU) 2017/1129, the positive net financial position as at 31 March 2025 was positive at 29,497 thousand Euro, while at 31 December 2024 it was positive at 34,151 thousand Euro.

Consolidated cash flow statement as at 31 March 2025

The Gefran Group's consolidated cash flow statement as at 31 March 2025 showed a negative net change in cash at hand of 5,953 thousand Euro (it was negative and amounted to 1.268 thousand Euro as at 31 March 2024). The change was as follows:

(Euro /000)	31 March 2025	31 March 2024
A) Cash and cash equivalents at the start of the period	59,629	57,159
B) Cash flow generated by (used in) operations in the period	1,472	2,963
C) Cash flow generated by (used in) investment activities	(5,211)	(1,387)
D) Free Cash Flow (B+C)	(3,739)	1,576
E) Cash flow generated by (used in) financing activities	(2,311)	(2,763)
F) Cash flow from continuing operations (D+E)	(6,050)	(1,187)
G) Exchange rate translation differences on cash at hand	97	(81)
H) Net change in cash at hand (F+G)	(5,953)	(1,268)
I) Cash and cash equivalents at the end of the period (A+H)	53,676	55,891

The cash flow generated by operations in the period was positive overall at 1,472 thousand Euro; specifically, operations during the period to the end of the first quarter of 2025, netted of the effect of provisions, depreciation/amortisation, and financial entries, generated cash of 8,349 thousand Euro (7,789 thousand Euro in the first quarter of 2024), while the net change in other assets and liabilities in the same period absorbed 1,413 thousand Euro (absorption of 559 thousand Euro in the period to the end of the first quarter of 2024) and the management of working capital generated 5,376 thousand Euro (3,934 thousand Euro in the same period of the previous year). The changes in provisions (risks and future liabilities, deferred taxes) absorbed 88 thousand Euro (343 thousand Euro in the first three months of 2024).

With regard to investment activities, in the first quarter of 2025 disbursements of 1,220 thousand Euro were recorded for the technical investments made (1,390 thousand Euro in the first three months of 2024). It should also be noted that, as described in Significant events in the first quarter of 2025, an investment agreement was concluded for the acquisition of a 22% stake in 40Factory S.r.l., leading to a liquidity disbursement of 4,000 thousand Euro.

Free cash flow (operating cash flow net of investing activities) at the end of the quarter amounted to negative 3,739 thousand Euro (positive 1,576 thousand Euro at 31 March 2024).

Financing activities absorbed resources totalling 2,311 thousand Euro (a total of 2,763 thousand Euro in the first quarter of 2024), of which 1,228 thousand Euro related to the repayment of noncurrent financial payables (2,504 thousand Euro as of 31 March 2024).

Investments

The total gross technical investments made by the Group during the first quarter of 2025 amounted to 1,220 thousand Euro (1,390 Euro in the first quarter of 2024) and related to:

production and laboratory facilities, machinery and tools for the Group's Italian plants, totalling 574 thousand Euro (at 31 March 2024, a total of 31 thousand Euro had been invested), including 412 thousand Euro for the production departments of the sensors business in the Parent Company;
production and laboratory facilities, machinery and tools for the plants of the Group's foreign subsidiaries for a total of 72 thousand Euro, of which 52 thousand Euro in China to reinforce the production lines of the sensors business (as at 31 March 2024, a total of 332 thousand Euro had been invested abroad, of which 210 thousand Euro in the United States and 118 Euro in China);
upgrading of industrial buildings for a total of 32 thousand Euro, all for the foreign subsidiaries (as at 31 March 2024, 535 thousand Euro had been invested in the upgrading of buildings, including 141 thousand Euro in the Parent Company Gefran S.p.A. and 357 thousand Euro in the US subsidiary);
renewal of electronic office machines and Information Technology systems equipment used within the Group, totalling 62 thousand (33 thousand Euro as at 31 March 2024);
capitalisation of costs incurred in the period for new product development, totalling 376 thousand Euro (426 thousand Euro in the first quarter of 2024);
investments in intangible assets amounting to 105 thousand Euro, mainly related to management software licences and SAP ERP development (other intangible assets totalling 32 thousand Euro were recognised in the first three months of 2024).

Investments are listed below by type and geographical region:

(Euro /000)	31 March 2025	31 March 2024

Intangible assets	481	458
Tangible assets	739	932
Total	1,220	1,390

	31 March 2025		31 March 2024
(Euro /000)	intangible assets and goodwill	tangible assets	intangible assets and goodwill	tangible assets

Italy	470	539	457	195
European Union	-	20	-	25
Europe non-EU	9	17	-	1
North America	-	4	-	569
South America	2	29	1	3
Asia	-	130	-	139
Total	481	739	458	932

Human resources

Workforce

The Group's workforce at 31 March 2025 totalled 720 persons, up by 21 since the end of 2024 and by 33 since 31 March 2024. Changes in the first three months of 2025 were as follows:

33 people were included in the Group, including 11 manual workers and 22 clerical staff;
12 people left the Group, including 1 manual workers and 11 clerical staff.

The change includes the stabilisation of 10 temporary workers (in Italy), which took place in early 2025.

As a result of the change in the first quarter, the Group's turnover rate, calculated on the average number of employees of 710, is 6.3%.

Significant events in the first quarter of 2025

On 31 January 2025 Gefran S.p.A. signed an investment agreement to acquire a minority stake in 40Factory S.r.l. with operational headquarters in Piacenza, a tech scale-up that offers manufacturers of industrial machines and end-users an Industrial loT (Internet of Things) platform for the collection and use of plant data and that also owns a generative artificial intelligence system dedicated to providing support in the use of industrial machines.

The operation is based on an awareness of the strategic importance of data for modern manufacturing companies. Their collection, management, and analysis are essential to optimize processes, improve efficiency, and support decisions. Indeed, thanks to the expertise and IoT services of 40Factory, Gefran is developing its ability to process and transform data collected in the field into more valuable information for customers, further strengthening its role as a strategic partner in the digital and sustainable transformation of production processes.

On 13 February 2025, the Board of Directors of Gefran S.p.A. examined the preliminary consolidated results at 31 December 2024.
On 13 March 2025, the Board of Directors of Gefran S.p.A. unanimously approved the annual financial statements, the consolidated financial statements and the Sustainability Report as at 31 December 2024.

The Board of Directors also resolved to propose to the Shareholders' Meeting the distribution of a dividend of 0.43 Euro per share in circulation (not including own shares), through use of the necessary amount of the retained earnings reserve.

Moreover, the Board of Directors resolved to propose to the Shareholders' Meeting to allocate part of the net profit for 2024 to a specific reserve pursuant to Article 1, para. 436 – 444 of Law No. 207 of 30 December 2024, and to allocate the remaining part of 2024 profit to the retained earnings reserve, in line with the Group's value creation strategy for its shareholders, safeguarding the Group's growth.

During the same meeting, the Board resolved to propose to the Shareholders' Meeting approval of the authorisation to purchase and dispose of, on one or more occasions, a maximum of 1,440,000.00 ordinary shares in the Company, equal to 10% of its share capital. The authorisation was requested for a period of 18 months from the date of the shareholders' resolution.

On 18 March 2025, Gefran S.p.A. signed an investment agreement to acquire a majority stake in CZ Elettronica S.r.l., together with its subsidiary Mecatronica S.r.l., both based in the province of Vicenza.

The agreement provides for Gefran's entry into the shareholding structure of CZ Elettronica S.r.l. through the sale of shares, following which Gefran S.p.A. will hold a 60% stake in the share capital for a total consideration of 870,000 Euro.

CZ Elettronica S.r.l. specializes in the development of custom turnkey plant solutions for the steel, textile and plastic sectors, and manufactures systems for regulating industrial motorization, standing out on the market for its constant innovation, its use of the most modern digital technologies and its team of highly qualified technicians.

With this operation, Gefran integrates and enriches its wealth of expertise by strengthening its ability to offer tailor-made application solutions to its customers.

On 20 March 2025, the investment agreement signed by Gefran S.p.A. on 31 January 2025 was finalised through a capital increase of 40Factory S.r.l., fully paid up and subscribed by Gefran S.p.A. for a total consideration of 4 million Euro (paid in cash, using its own funds), as a result of which Gefran S.p.A. now holds 22% of the share capital of 40Factory S.r.l.

Significant events following the close of the first quarter of 2025

On 1 April 2025, the Swiss subsidiary Sensomate AG adopted the new name Gefran Schweiz AG.
On 14 April 2025, the investment agreement signed by Gefran S.p.A. on 18 March 2025 was finalised through the sale of part of the share capital of CZ Elettronica S.r.l. to Gefran S.p.A., for a total consideration of 870 thousand Euro (paid in cash, using its own funds), as a result of which Gefran S.p.A. now holds 60% of the Company, together with its subsidiary Mecatronica S.r.l.
On 29 April 2024, the Ordinary Shareholders' Meeting of Gefran S.p.A. resolved to:
- o Approve the 2024 financial statements and distribute an ordinary dividend, gross of withholding taxes provided for by law, of 0.43 Euro per eligible share, by using retained earnings to the necessary extent (ex-dividend date 5 May 2025, record date 6 May 2025 and payment from 7 May 2025).
- o Approve the allocation of a portion of the profit for 2024, amounting to 8.2 million Euro, to a specific reserve pursuant to Article 1 (paragraphs 436-444) of Law no. 207 of 30 December 2024, and the allocation of the remaining portion of the profit for 2024, amounting to 2 million Euro, to the retained earnings reserve.
- o Authorise the Board of Directors to purchase a maximum of 1,440,000 own shares with a face value of 1 Euro each, within 18 months from the date of the Shareholders' Meeting.

The Shareholders' Meeting, pursuant to Article 123-ter of the Consolidated Law on Finance, also held a binding vote that approved the Group's 2025 Remuneration Policy and also held an advisory and non-binding vote that approved its 2024 Remuneration Report.

Outlook

2025 began with global growth being projected at 3.3% by the International Monetary Fund (in line with what was observed for 2024) for both the current year and the following one; the estimate has now necessarily been adjusted in the light of the latest developments in trade policies. According to the latest report (first published by the IMF at the end of April), global growth is forecast at 2.8% in 2025 and 3% in 2026, as a result of ongoing trade tensions and high political uncertainties, which can cause financial instability and negative impacts on the international monetary system. Inflation is forecast (overall) at 4.3% in 2025 and 3.6% in 2026 (with upgrades for advanced economies and downgrades for emerging economies).

With regard to the Eurozone, GDP is projected to grow by 0.8% in 2025, up from 0.9% in 2024, and then to rise to 1.2% in 2026.

In terms of the national scenario, the IMF estimates growth at 0.4% in 2025 (0.7% in 2024), supported by household consumption and public investment, returning to 0.8% in 2026.

In the first three months of the year, revenues grew in all geographical regions served by the Group. The increase in revenues and the maintenance of added value at good levels allowed for the increase in costs to be fully absorbed, generating higher margins than in the previous year.

The extraordinary operations relating to the shareholding in 40Factory and the acquisition of a majority stake in CZ Elettronica, as well as investments in product innovation and manufacturing processes, strengthen Gefran's position in the industrial automation industry.

Despite macroeconomic instability, the Group is confident in its capabilities, thanks to its vertical integration and global manufacturing presence. The outlook for the second quarter remains favourable, with an indication of moderately growing revenues and largely positive margins.

Own shares

As at 31 December 2024, Gefran S.p.A. held 198,405 shares, equal to 1.38% of the total, with an average book value of 8.6483 Euro per share, and a total value of 1,716 thousand Euro.

During the first three months of 2025, as at the date of this publication, no trading activities took place; therefore, the situation is unchanged with respect to what is described above.

Dealings with related parties

On 12 November 2010, the Board of Directors of Gefran S.p.A. approved the "Internal Procedure for Transactions with Related Parties", in accordance with Consob Resolution no. 17221 of 12 March 2010. The procedure in question was subsequently updated by the Board of Directors, on 24 June 2021, to implement the new provisions of EU Directive 2017/828 (so-called "Shareholders' Rights II"), which was transposed into Italian law by Decree no. 49/2019, with regard to primary legislation, and by Consob Resolution no. 21624 of 10 December 2020, with regard to the secondary legislation.

This document is published in the section "Investor Relations/Governance/Documents, procedures and shareholders' agreements" of the Company's website, available at https://www.gefran.com/governance/documents-and-procedures/.

The "Internal Procedure for Transactions with Related Parties" is based, inter alia, on the following general principles:

ensuring the essential and procedural transparency and probity of transactions with related parties;
providing the Board of Directors and the Board of Statutory Auditors with an appropriate assessment, decision-making and control tool regarding transactions with related parties.

It is structured as follows:

First section: definitions (related parties, significant and insignificant transactions, transactions of negligible amount, etc.).
Second section: procedures to approve significant and insignificant transactions, exemptions.
Third section: obligations to disclose and supervise compliance with the procedure.

With regard to Group companies' dealings with related parties, in accordance with IAS 24 we provide below information for the first quarter of 2025 and2024.

Transactions with related parties are part of normal operations and the typical business of each entity involved and are carried out under normal market conditions. There have not been any atypical or unusual transactions.

With the specification that the economic and equity effects of infragroup transactions are eliminated in the consolidation process, the most significant transactions with related parties are listed below. These transactions have no material impact on the Group's economic and financial structure. They are summarised in the following tables:

(Euro /000)	Imet S.p.A.
Costs of raw materials and accessories
2024	(200)
2025	(178)

(Euro /000)	Climat S.r.l.
Service costs
2024	(52)
2025	(51)

(Euro /000) Climat S.r.l.	Imet S.p.A. Total

Property, plant, machinery and tools

2024	198	-	198
2025	6	-	6

Trade payables
2024	144	170	314
2025	116	217	333

It is also to be noted that transactions with related parties of an amount below 50 thousand Euro are not reported since, as per internal regulations, this amount has been identified as the threshold for identifying significant transactions.

With regard to dealings with subsidiaries, the Parent Company Gefran S.p.A. provided technical and administrative/management services and paid royalties to its subsidiaries totalling 961 thousand Euro under specific contracts (907 thousand Euro as of 31 March 2024).

Gefran S.p.A. provides a Group cash pooling service, including through the use of a "Zero Balance" Cash Pooling service, which involves all European subsidiaries.

None of the subsidiaries holds shares of the Parent Company or held them during the period.

Persons of strategic importance have been identified as members of the Executive Board of Directors of Gefran S.p.A. and of other Group companies, as well as executives with strategic responsibility, identified in the General Manager of Gefran S.p.A., as well as in the Chief Financial Officer, Chief People & Organisation Officer, Group Chief Technology Officer and Chief Sales Officer.

Business areas

The following sections comment on the performance of the individual business areas.

To ensure correct interpretation of figures relating to the individual activities, it should be noted that:

the business represents the sum of revenues and related costs of the Parent Company Gefran S.p.A. and of the Group subsidiaries;
the figures for each business are provided gross of internal trade between different businesses;
the costs of central functions, which mainly pertain to Gefran S.p.A., are fully allocated to the businesses, where possible, and quantified according to actual use; they are otherwise divided according to economic-technical criteria.

1.Sensors

Summary results

The table below shows the key economic figures:

			Change 2025 - 2024
(Euro /000)	31 March 2025	31 March 2024	Value	%

Revenues	23,757	21,386	2,371	11.1%
EBITDA	6,060	5,420	640	11.8%
% of revenues	25.5%	25.3%
EBIT	4,913	4,248	665	15.7%
% of revenues	20.7%	19.9%

The revenues of the sensors business are analysed by geographical region below:

	31 March 2025		31 March 2024		Change 2025 - 2024
(Euro /000)	Value	%	Value	%	Value	%

Italy	5,383	22.7%	4,770	22.3%	613	12.9%
Europe	7,241	30.5%	6,439	30.1%	802	12.5%
America	3,566	15.0%	3,113	14.6%	453	14.6%
Asia	7,445	31.3%	6,985	32.7%	460	6.6%
Rest of the world	122	0.5%	79	0.4%	43	54.4%
Total	23,757	100%	21,386	100%	2,371	11.1%

Business performance

Revenues from the business at 31 March 2025 amounted to 23,757 thousand Euro, up over the figure of 31 March 2024, equal to 21.386 thousand Euro, posting a growth rate of 11.1% (it should be noted that the exchange rate effect does not have a significant impact). In particular, revenue growth was driven by sales of melt, industrial pressure and position transducers product families.

From a geographical point of view, the increase in revenues in the quarter (compared with the same quarter of the previous year) was recorded in all areas served by the Group, with positive doubledigit percentage changes except for the Asia area, which in any case posted +6.6% compared with the first quarter of the previous year. With regard to other areas, after the decline recorded during 2024 (compared with the previous period), revenues from the business increased on the domestic market, in Europe and America by 12.9%, 12.5% and 14.6% respectively.

Positive signs were also recorded in orders received for the sensors business in the first quarter of 2025, totalling 24,288 thousand Euro, an increase over the figure for the same period of 2024 (+6.8%). The backlog at 31 March 2025 was lower (by 2.5%) than at 31 March 2024, though higher when compared to the closing figure of 2024 (by 2.6%).

EBITDA for the period ended 31 March 2025 amounted to 6,060 thousand Euro (25.5% of the business unit's revenues), largely positive and up by 640 thousand Euro compared with 31 March 2024, when it was 5,420 thousand Euro (25.3% of revenues). The change in EBITDA was essentially due to the increase in sales, which led to a consequent increase in added value, partly reduced by higher costs for the operational management of the business.

EBIT for the first quarter of 2025 amounted to 4,913 thousand Euro, equal to 20.7% of revenues, compared with an EBIT of 4,248 thousand Euro in the same period in the previous year (19.9% of revenues), an increase of 665 thousand Euro. The change in the figure for the first quarter of 2025 compared to the same period in the previous year was mainly due to the same dynamics illustrated for EBITDA.