HALF-YEARLY REPORT AT 30 JUNE 2025

Group structure and corporate bodies
Interim Report on Operations	বা
Annexes to the Interim Report on Operations	12
Half-Yearly Condensed Consolidated Financial Statements	19
Consolidated statement of financial position	20
Consolidated income statement	21
Consolidated statement of comprehensive income	22
Consolidated statement of cash flows	28
Statement of changes in consolidated shareholders' equity	24
Explanatory notes	25
Certification of the Half-Yearly Condensed Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98	52

Independent auditors' report

GROUP STRUCTURE AND CORPORATE BODIES Group structure

Parent company

SABAF S.p.A.

Registered and administrative office: (Brescia) REA.: Tax Code: Share capital at 30 June 2025: Web site:

Via dei Carpini 1 - 25035 Ospitaletto

Brescia 347512 03244470179 €12,686,795 fully paid in www.sabafgroup.com

Subsidiaries and equity interest attributable to the Group

Companies consolidated on a line-by-line basis
Faringosi Hinges S.r.l.	Italy	100%
Sabaf do Brasil Ltda. (Sabaf Brazil)	Brazil	100%
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf Turkey)	Turkey	100%
Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China)	China	100%
A.R.C. S.r.l.	Italy	100%
Sabaf India Private Limited (Sabaf India)	India	100%
Sabaf Mexico Appliance Components S.A. de c.v. (Sabaf Mexico)	Mexico	100%
C.M.I. S.r.l.	Italy	100%
C.G.D. S.r.l.	Italy	100%
P.G.A S.r.l.	Italy	100%
Sabaf America Inc. (Sabaf America)	U.S.A.	100%
Mansfield Engineered Components LLC (MEC)	U.S.A.	51%

Corporate bodies

Board of Directors

Chairman	Claudio Bulgarelli
Chief Executive Officer	Pietro Iotti
Director	Gianluca Beschi
Director	Alessandro Potestà
Director	Cinzia Saleri
Director (*)	Laura Ciambellotti
Director (*)	Francesca Michela Maurelli
Director (*)	Federica Menichetti
Director (*)	Daniela Toscani
(*) independent directors

Board of Statutory Auditors

Chairwoman	Alessandra Tronconi
Statutory Auditor	Maria Alessandra Zunino de Pignier
Statutory Auditor	Mauro Giorgio Vivenzi

Independent auditors

EY S.p.A.

INTERIM REPORT ON OPERATIONS

Introduction

This Half-Yearly Financial Report for the six months ended 30 June 2025 has been prepared pursuant to Article 154-ter of Legislative Decree no. 58/1998 and in accordance with the applicable international financial reporting standards endorsed specifically, IAS 34 Interim Financial Reporting. The half-year figures at 30 June 2025 and 30 June 2024 and for the six-month period then ended were reviewed by EY S.p.A., the financial figures at 31 December 2024, shown for comparative purposes, were audited by EY S.p.A.

The business

The Sabaf Group is active in the production of components for household appliances and is one of the world's leading manufacturers of components for gas cooking appliances. In reference market therefore consists of manufacturers of household appliances.

Sabaf's product range focuses on the following main lines:
· Gas components, made up of:
- Valves and thermostats, with or without thermoelectric safety devices: the components that regulate the flow of gas to the burner;
- Burners: these are the components that, via the mixing of gas with air and combustion of the gas used, produce one or more rings of flame;
- Accessories: other components that complete the range, aimed particularly at making it possible to light and control the flame.
· Hinges: these components enable the smooth and balanced movement of appliance doors when they are opened or closed.
· Electronic components for household appliances, such as electronic control boards,
timers and display and nower units for section of timers and display and power units for ovens, refrigerators, freezers, hoods and other products.
· Electromagnetic induction cooking components: complete kits including all
components for hob operation components for hob operation.

The Sabaf Group currently has fifteen production plants: Ospitaletto (Brescia), Bareggio (Milan), Campodarsego (Padua), Crespellano (Bologna - two plants), Bareggio
Jundia), (Brazil), Manisa, (Turkey, turnal manus (Bologna - two plants), Fabriano (Ancona), Jundiai (Brazil), Manisa (Turkey - two - two - two plants), Tabrano (Ancona),
Myszkow (Poland) Hosur (India) San Luis Batanbul (Turkey), Kunshan (China), Myszkow (Poland), Hosur (India), San Luis Potosi (Mexico) Tulksy), Kulishan
Myszkow (Poland), Hosur (India), San Luis Potosi (Mexico) and Mansfield (USA),

Economic performance

The economic results for the first half of 2025 and the second quarter of 2025 are presented and commented on below on a normalised basis, i.e. adjusted for the effects of the application of IAS 29 - the hyperinflation accounting standard - with reference to the financial statements of the subsidiary Sabaf Turkey. This representation allows a better understanding of the Group's performance and a more accurate comparison with previous periods.

First half of 2025

Half-year results Data in thousands of €	H1 2025	H1 2024	2025-2024 change	% change	12 MONTHES 2024
Sales revenue Hyperinflation - Turkey Normalised revenue	143.000 2.738	144,677 (1,566)	(1,677) 2,627	-1.2% +1.8%	285,091 (8,126) 276,965
	145,738	143,111
FBITDA EBITDA % Hyperinflation - Turkey	20,237 14.2 1,090	23,674 16.4 (734)	(3,437)	-14.5%	43.704 15.3 (3,306)
Normalised EBITDA	21,327	22,940	(1,613)	-7.0%	40,398
Normalised EBITDA%	14.6	16.0			14.6
EBIT EBIT % Hyperinflation – Turkey	7.832 5.5 3,233	12.394 8.6 1,099	(4,562)	-36.8%	17,739 6.2 3,465
Normalised EBIT	11,065	13,493	(2,428)	-18.0%	21,204
Normalised EBIT %	7.6	9.4			7.7
Net profit Net result % Hyperinflation - Turkey	5.239 3.7 1,459	8.363 5.8 1,779	(3,124)	-37.4%	6,928 2.4 9.022
Normalised result of the Group	6,698	10,142	(3,444)	-34.0%	15,950
Normalised result %	4.6	7.1			5.8

In the first half of 2025, the Sabaf Group achieved normalised sales revenue of €145.7 million, up 1.8% compared to €143.1 million in the first half of 2024 (+2.2% at equal exchange rates).

Normalised EBITDA for the first half of 2025 was €21.3 million (14.6% of sales), down by 7% compared to the figure of €22.9 million (16%) in the first half of 2024.

Normalised EBIT was €11.1 million (7.6%), down 18% compared to €13.5 million (9.4%) in the first half of 2024.

In view of the positive performance of MEC - the US company in which the Group acquired 51% in 2023 - the value of the put option granted to the minority shareholders for the 49% stake was adjusted as at 30 June 2025, the price of which is correlated to MEC's results in the two years preceding the exercise of the option. The related financial liability (now €12.9

million) increased by €1.4 million, resulting from the net effect of financial expenses amounting to €2.9 million and foreign exchange gains of €1.5 million.

Normalised net profit for the period was €6.7 million (€10.1 million in the first half of 2024).

Quarterly results Data in thousands of €	Q2 2025 (*)	01 2025	% change	02 2025 (*)	02 2024 (*)	% change

Sales revenue	69.353	73,647	-5.8	69.353	75,816	-8.5
Hyperinflation - Turkey	1,790	948		1,790	(1,703)
Normalised revenue	71,143	74,595	-4.6	71,143	74,113	-4.0
EBITDA	9,987	10,250	-2.6	9,987	13,106	-23.8
EBITDA %	14.4	13.9		144	17.3
Hyperinflation - Turkey	918	172		918	(719)
Normalised EBUDA	10,905	10,422	+4.6	10,905	12,387	=12.0
Normalised EBITDA %	15.3	14.0		15.3	16.7
EBIT	3,970	3.862	+2.8	3.970	7,421	-46.5
EBIT %	5.7	5.2		5.7	9.8
Hyperinflation - Turkey	1,850	1,382		1,850	260
Normalised EBIT	5,820	5,244	+11.0	5,820	7.681	-24-2
Normalised EBIT %	8.2	7.0		8.2	10.4
Group net result	1.449	3,790	-61.8	1.449	4.093	-64 6
Net result %	2.1	5.1		2.1	5.4
Hyperinflation - Turkey	1,739	(281)		1,739	1,354
Normalised result of the
Group	3,188	3,509	-9.1	3,188	5,447	-41.5
Normalised result %	4.5	4.7		4.5	7.3

Second quarter of 2025

(*) unaudited figures

In the second quarter, uncertainties in the international political and macroeconomic scenarios dampened the upward trend in demand that had emerged at the beginning of the year.

The Group recorded normalised sales of €71.1 million, down by 4.6% compared to €74.6 million for the first quarter of 2025 and 4% compared to €74.1 million in the second quarter of 2024 (-2.4% at equal exchange rates).

Normalised EBITDA for the second quarter was €10.9 million (15.3% of turnover), up by 4.6% compared to the figure of €10.4 million (14%) in the first quarter of 2025. In comparison with the second quarter of 2024 (€12.4 million, 16.7%) there was a 12% decrease.

Normalised EBIT was €5.8 million (8.2%), up 11% compared to €5.2 million in the first quarter of 2025 (7%) and down 24.2% to €7.7 million in the second quarter of 2024 (10.4%).

Normalised net profit for the period was €3.2 million (€3.5 million in the first quarter of 2025 and €5.4 million in the second quarter of 2024).

Data in thousands of €		30/06/2025 31/12/2024 30/06/2024
Non-current assets	171.120	177.663	181.619
Current assets 1	147,645	142,200	149.925
Current liabilities2	74,658)	(63,953)	(73,213)
Net working capital	72.987	78.247	76.712
Provisions for risks and charges, post-employment benefits, deferred taxes, other non-current payables	(8,558)	(8,285)	(9,278)
Net invested capital	235,549	247,625	249,053
Short-term net financial position Medium/long-term net financial position Net financial debt	(3,958) (75,459) (79,417)	(11,026) (62,855) (73,881)	8.160 (82,923) (74,763)
Shareholders' equity	156 139	178 720	174 290

Financial position, cash flows and financial debt at 30 June 2025

Cash flows for the financial year are summarised in the table below:

Data in thousands of €	H12025	2024	191120224
Opening liquidity	30,641	36,353	36,353
Operating cash flow	19.687	27,033	13,693
Cash flow from investments	(12,130)	(14,706)	(6,152)
Free cash flow	7,557	12,327	7.541
Cash flow from financing activities	6.751	(7,899)	(10,545)
Payment of dividends	(7,534)	(8,663)	(7,229)
Treasury share transactions	(1,262)	(211)
Foreign exchange differences	(2,483)	(1,266)	(575)
Cash flow for the period	3,029	(5,712)	(10,808)
Closing liquidity	33,670	30,641	25,545

In the first half of 2025, operations generated cash flows of €19.7 million. At 30 June 2025, the impact of the net working capital3 on revenue was 25.5% compared to 26.5% at 30 June 2024 and 27.4% at the end of 2024.

Net investments for the half-year came to € 12.1 million (€6.2 million in the first half of 2024 and € 14.7 million for 2024). For 2025, the Group plans to invest approximately € 18 million.

As at 30 June 2025, net financial debt was €79.4 million (€73.9 million as at 31 December 2024 and €74.8 million as at 30 June 2024), against a consolidated equity of €156.1 million. Net financial debt at 30 June 2025 includes the financial liability of €12.9 million related to the recognition of the put option granted to the minority shareholders of MEC (US company in which Sabaf acquired 51% in July 2023) and the financial liabilities of €6 million recognised in accordance with IFRS 16 (€5.6 million related to operating leases and €0.4 million related to finance leases).

¹ Sum of Inventories, Trade receivables, Tax receivables and Other current receivables

² Sum of Trade payables, Tax payables and Other liabilities

³ Difference between current assets and current liabilities

Intra-group and related party transactions

Transactions with related parties, including intra-group transactions, have not been qualified as atypical or unusual, as they fallong than group transactions, nave not been
These transactions are renusual, as they fall under the normal course of Group op These transactions are regulated at arm's length conditions.

Related-party transactions other than intra-group transactions are described in the Explanatory Notes to the half-yearly condensed consolidated financial statements, which also show to what extent related- party transactions affected financial statements, while

Risk factors related to the segment in which the Group operates and main risks

and uncertainties for the remainder of 2005 and uncertainties for the remainder of 2025

Risks related to the conflicts in Ukraine and in the Middle East

In relation to the conflict between Ukraine and Russia, it is noted that the Group has an insignificant direct exposure to the markets of Russia, Belarus and Ukraine. However, these are markets supplied by some of the Sabaf Group's customers, who are exposed to these markets to varying degrees.

In October 2023, the war that broke out between Israel and Hamas led to a further increase in global geopolitical tensions. The Group has not identified any significant risks related to this conflict as it does not operate in the affected areas.

In general, the economic recovery that characterised the early post-pandemic period has come to an end and the short to medium term outlook remains uncertain and diffeult to assess, with the possibility of a continuation of a weak macroeconomic situation. The Group continuously monitors the macroeconomic environment and its impact on the business.

Tariff barriers

The recent tightening of US customs policies has led to an increase in tariffs. Specifically at the date of this Report and in a framework that is subject to further developments - the tariffs on the European Union (15%) and general tariffs on steel and aluminium (50%) have a major effect for the Sabaf Group.

The Group's exports to the United States are modest (€10.7 million in the first half of 2025) and refer to products for which customers have no alternative local supplies. The Group's manufacturing footprint, with plants located in all major markets, including the United States, is a further factor that mitigates the risk associated with tariff arriers.

However, in the medium term, the US administration's policies are likely to result in higher inflation in the US, which could affect demand from end consumers.

Climate change and energy transition

The Sabaf Group follows a business development path that aims to reduce the environmental impact of its own operations and that of its value chains to reduce the consideration to the risks and opportunities related to climate change. The double materiality assessment identified three transition risks, while no material physical risks e emerged.

The first risk relates to the need to adapt to market expectations regarding sustainability, e.g. through the implementation of effective decarbonisation strategies. It is becoming

increasingly common for appliance manufacturers to involve their suppliers on environmental matters, specifically climate change. Companies that develop concrete plans to reduce their environmental impact can improve their competitiveness, consolidate their position in their target markets and, more generally, strengthen stakeholder relations.

The second risk is the management of CO2 emissions along the entire production chain, an increasingly important factor in meeting market demands. Emissions management facilitates the monitoring of environmental performance and enables comprehensive communication, in line with customer and investor expectations.

The third risk concerns the adaptation of companies to changing environmental regulations, such as Carbon Free, RoHS and CBAM regulations. The evolving regulatory framework requires constant updating and rapid adaptation, both to ensure compliance, and to seize opportunities for operational efficiency and consolidate market presence.

In order to address stakeholder requirements and sustainability reporting regulations, in 2023 the Group launched a carbon management and climate change mitigation pathway that includes the identification of specific drivers of decarbonisation. These drivers will form the basis for the formalisation of a transition plan, which the Group aims to define by 2025.

For additional information, reference should be made to the Consolidated Sustainability Statement included in the 2024 Report on Operations, with respect to which no significant changes occurred.

The Sabaf Group is also exposed to various risk factors, attributable to the macrocategories described below:

Risks of external context

Risks deriving from the external context in which Sabaf operates, which could have a negative impact on the economic and financial sustainability of the business in the medium/long-term. The most significant risks in this category are related to general economic conditions, trend in demand and product competition.

Strategic risks

Strategic risks that could negatively impact Sabaf's medium-term performance, including, for example, risks related to low profitability of certain product lines and the risks arising from the mismatch between market needs and product innovation.

Operational risks

Risks of suffering losses due to inadequate or malfunctioning processes, human resources and information systems. This category includes financial risks (e.g. losses deriving from the volatility of the price of raw materials and from fluctuations in exchange rates), risks related to production processes (e.g. product liability, saturation level of production capacity), organisational risks (e.g. loss of key staff and expertise and/or the difficulty of replacing them) and Information Technology risks.

Legal and compliance risks

Risks related to Sabaf's contractual liabilities and compliance with the regulations applicable to the Group, including: Legislative Decree 231/2001, Law 262/2005, HSE regulations, regulations applicable to listed companies, tax regulations, labour regulations, international trade regulations and intellectual property regulations.

The Report on Operations at 31 December 2024, to which reference should be made, describes in detail these risks and the related risk management actions that are currently being implemented.

Significant events after the end of the half-year

No significant events occurred after 30 June 2025.

Outlook for the current year

The Group's current order book shows a slightly positive sales trend for the current year. In the second half of the year, demand is expected to be stable, with volumes below historical averages, affected by the critical international political and macroeconomic scenario.

For the Board of Directors The Chairman Claudio Bulgarelli

Ospitaletto, 4 September 2025

Annexes to the Interim Report on Operations

Normalised half-year revenue (€ / 000)	H1 2025	0/0	H1 2024	0/0	% change	2022 BEY
Europe (excluding Turkey)	42.446	29.1%	41.492	29.0%	+2.3%	79.036
Turkey	36.229	24.9%	36,853	25.8%	-1.7%	70.459
North America	33.187	22.8%	30.437	21.3%	+9.0%	60,088
South America	18,350	12.6%	17,620	12.3%	+4.1%	35,654
Africa and Middle East	6,686	4.6%	9.236	6.5%	-27.6%	15.190
Asia and Oceania	8,840	6.1%	7.473	5.2%	+18.3%	16,538
Ilotal	145,738	100%	143,111	100%	+1.8%	276,965

Normalised turnover by geographical area

Normalised quarterly revembe (€ /000)	02 2025*	0/0	02 2024*	0/0	% change	2024 FY
Europe (excluding Turkey)	21,296	29.9%	20,834	28.1%	+2.2%	79.036
Turkey	17,001	23.9%	18.467	24.9%	-7.9%	70.459
North America	16,657	23.4%	15.779	21.3%	+5.6%	60,088
South America	8,988	12.6%	10.660	14.4%	-15.7%	35,654
Africa and Middle East	2,608	3.7%	4.292	5.8%	-39.2%	15.190
Asia and Oceania	4.593	6.5%	4.081	5.5%	+12.5%	16.538
Itotal	71,143	100%	74,113	100%	-4.0%	276,965

Normalised turnover by product line

Normalised half-year revenue (€ /000)	H1 2025	0/0	H1 2024	0/0	% change	2024 FSY
Gas parts	86,300	59.2%	84.754	59.2%	+1.8%	164,081
Hinges	46,930	32.2%	43.932	30.7%	46.8%	86,627
Electronic components	12,390	8.5%	14.194	9.9%	-12.7%	25,783
Induction	118	0.1%	231	0.2%	-48.9%	474
Total	145.738	100%	143,111	100%	+1.8%	276,965
Normalised quarterly	02		02

48 WASSESSAN WAS WASSES A WORDS A WAS revenue (€ / 000)	02 2025*	00	02 2024*	0/0	% change	2024 137
Gas parts	41,956	59.0%	44.129	59.5%	-4.90%	164.081
Hinges	22,807	32.1%	23.001	31.0%	-0.8%0	86,627
Electronic components	6,274	8.8%	6.832	9.3%	-8.2%	25,783
Induction	106	0.1%	151	0.2%	-29.8%0	474
Total	71,143	100%	74,113	100%	-4.0%	276,965

(*) unaudited figures

Reconciliation of the consolidated income statement at 30 June 2025

(€ / 000) INCOME STATEMENT COMPONENTS	ISI1 2025	TAS 29 effect	H1 2025 Normalised
OPERATING REVENUE AND INCOME
Revenue	143,000	2,738	145,738
Other income	5,435	71	5,506
Total operating revenue and income	148,435	2,809	151,244
OPERATING COSTS
Materials	(71,876)	(1,001)	(72,877)
Change in inventories	6,737	40	6,777
Services	(26,310)	(252)	(26,562)
Personnel costs	(37,103)	(505)	(37,608)
Other operating costs	(718)	(1)	(719)
Costs for capitalised in-house work	1,072		1,072
Total operating costs	(128,198)	(1,719)	(129,917)
OPERATING PROFIT BETORE DEPRECIATION AND AMORTISATION, CAPITAL GAINS/LOSSES, AND IMPARIMENT LOSSES/REVERSALS OF IMPAIRMENT LOSSES OF NON-CURRENT ASSETS	20,237	1,090	21,327
Amortisation/depreciation	(12,309)	2.143	(10,166)
Capital gains on disposals of non-current assets	13		13
Impairment losses on non-current assets	(109)		(109)
EBU	7,832	3,233	11,065
Financial income	341	8	349
Financial expenses	(4,732)	(5)	(4,737)
Net income / (charges) from hyperinflation	2,535	(2,535)
Exchange rate gains and losses	1.351	271	1,622
PROFIT BEFORE TAXES	7,327	972	8,299
Income taxes	(1,219)	487	(732)
NET PROFIT FOR THE PERCOD of which:	6,108	1,459	7,567
Minority interests	869		869
PROFIT ATTRIBUTABLE TO THE GROUP	5.289	1.459	6.698

Reconciliation of the consolidated income statement at 30 June 2024

(€ /000) INCOME STATEMENT COMPONENTS	IJ 1 20224	IAS 29 effect	H1 2024 Normalised

OPERATING REVENUE AND INCOME
Revenue	144,677	(1,566)	143,111
Other income	4,638	(39)	4,599
Total operating revenue and income	149,315	(1,605)	147,710
OPERATING COSTS
Materials	(71,296)	652	(70,644)
Change in inventories	5,313	(170)	5,143
Services	(25,284)	160	(25,124)
Personnel costs	(34,735)	228	(34,507)
Other operating costs	(1,163)	1	(1,162)
Costs for capitalised in-house work	1,524		1,524
Total operating costs	(125,641)	871	(124,770)
OPERATING PROFIT BEFORE DEPRECIATION
AND AMORTISATION, CAPITAL GAINS/LOSSES, AND IMPARIMENT	23,674	(734)	22,940
LOSSES REVERSALS OF IMPAIRCIENT TOSSES OF NON-CURRENT ASSETS

Amortisation/depreciation	(11,327)	1,789	(9,538)
Capital gains on disposals of non-current assets	55	ರ್ಗ	ਰੇਰੇ
Impairment losses on non-current assets	(8)		(8)
EBIT	12,394	1,099	13,493
Financial income	1,648	(9)	1,639
Financial expenses	(2,334)	(3)	(2,337)
Net income/(charges) from hyperinflation	(1,119)	1,119
Exchange rate gains and losses	864	(21)	843
PROFIT BEFORE TAXES	11,453	2,185	13,638
Income taxes	(2,625)	(406)	(3,031)
MET PROFIT FOR THE PERIOD	8,828	1,779	10,607
of which: Minority interests	465		465
PROFIT ATTRIBUTABLE TO THE GROUP	8,363	1,779	10,142

Reconciliation of the Consolidated Income Statement for the Second Quarter 2025*

(€ /000) INCOME STATEMENT COMPONENTS	02 2025	Hyperinflation TAS 29	Q2 2025 Normalised
OPERATING REVENUE AND INCOME
Revenue	69,353	1,790	71,143
Other income	2,372	51	2,423
Total operating revenue and income	71,725	1,841	73,566
OPERATING COSTS
Materials	(34,838)	(661)	(35,499)
Change in inventories	4,530	220	4,750
Services	(13,359)	(163)	(13,522)
Personnel costs	(18,194)	(321)	(18,515)
Other operating costs	(290)	2	(288)
Costs for capitalised in-house work	413		413
Total operating costs	(61,738)	(923)	(62,661)
AND AMORTISATION, CAPITAL GAINS/LOSSES, AND IMPARIMENT LOSSES/REVERSALS OF IMPAIRMENT LOSSES OF NON-CURRENT ASSETS Amortisation/depreciation Capital gains on disposals of non-current assets Impairment losses on non-current assets	9,987 (6,031) 11 3	918 932	10,905 (5,099) 11 3
EBUF	3,970	1,850	5,820
Financial income
Financial expenses	141	7	148
Net income/(charges) from hyperinflation	(3,542)	(4)	(3,546)
Exchange rate gains and losses	689 792	(689) 189	981
PROFIT BEFORE TAXES	2,050	1,353	3,403
Income taxes	(166)	386	220
NET PROFIT FOR THE PERIOD of which:	1,884	1,789	3,623
Minority interests	435		435
PROFIT ATTRIBUTABLE TO THE GROUP	1,449	1,739	3,188

(*) unaudited figures

Reconciliation of the Consolidated Income Statement for the Second Quarter 2024*

(€ / 000) INCOME STATEMENT COMPONENTS	Q2 2024	Hyperinflation TAS29	Q2 2024 Normalised
OPERATING REVENUE AND INCOME
Revenue	75,816	(1,703)	74,113
Other income	2,500	(46)	2,454
Total operating revenue and income	78,316	(1,749)	76,567
OPERATING COSTS
Materials	(37,985)	689	(37,296)
Change in inventories	3,595	(78)	3,517
Services	(13,236)	174	(13,062)
Personnel costs	(17,633)	241	(17,392)
Other operating costs	(746)	2	(744)
Costs for capitalised in-house work	795	2	797
Total operating costs	(65,210)	1.030	(64,180)
OPERATING PRODITIBERO REDDER RECIALION
AND AMORTISATION, CAPITAL
GAINS/LOSSES, AND IMPARIMENT LOSSES/REVERSALS OF IMPAIRMENT	13,106	(719)	12,387
LOSSES OF NON-CURRENT ASSETS
Amortisation/depreciation	(5,689)	941	(4,748)
Capital gains on disposals of non-current assets	12	38	50
Impairment losses on non-current assets	(8)		(8)
EBOT	7,421	260	7,681
Financial income	997	(ਰ)	988
Financial expenses	(1,263)	(4)	(1,267)
Net income / (charges) from hyperinflation	(1,460)	1,460
Exchange rate gains and losses	110	(22)	88
PROFIT BEFORE TAXES	5,805	1,685	7,490
Income taxes	(1,445)	(331)	(1,776)
NET PROFIT FOR THE PERIOD	4,360	1,354	5,714
of which: Minority interests	267		267
PROFIT ATTRIBUTABLE TO THE GROUP	4,093	1,354	5,447

(*) unaudited figures

Consolidated statement of financial position

Consolidated statement of illiancial position	30/06/2025 31/03/2025 31/12/2024 30/06/2024
(€ / 000)
ASSETS
NON-CURRENT ASSETS
	104,004	106,142	105,539	106,712
Property, plant and equipment	493	515	537	580
Investment property	56,457	59.137	60,136	60,427
Intangible assets	86	86	86	86
Equity investments Non-current receivables	රිපිටි	ਰੇ ਕੇਰੇ	905	1,133
Deferred tax assets	9,090	10,101	10.460	12,681
Total non-current assets	171,120	176,930	177,663	181,619
CURRENT ASSETS			63,132	65,624
Inventories	65,336	63,402	64,837	71,105
Trade receivables	69,631	68,395	9,909	8,663
Tax receivables	9,082	8,972	4,322	4,533
Other current receivables	3,596	4,911	3,120	9,370
Current financial assets	1,656	2,296	30,641	25,545
Cash and cash equivalents	33,670	34,490	175,961	184,840
Total current assets	182,971	182,466
ASSETS HELD FOR SALE
TOTAL ASSETS	354,091	359,396	353,624	366,459
SHAREHOLDERS' EQUITY AND LIABILITIES

SHAREHOLDERS' EQUITY	12,687	12,687	12,687	12,687
Share capital	77.853	95,201	88,528	93,910
Retained earnings, Other reserves	52,818	51,501	57,661	50,757
IAS 29 reserve	5,239	3,790	6,928	8,363
Net profit for the period	148,597	163,179	165,804	165,717
Total equity interest pertaining to the Parent Company	7.535	8,050	7,940	8,573
Minority interests	156,132	171,229	173,744	174,290
Total shareholders' equity
NON-CURRENT LIABILITIES		66,761	62,855	71,396
Loans	75,459			11,527
Other financial liabilities		4,097	4,049	3,832
Post-employment benefits and retirement provisions	4,005	330	320	327
Provisions for risks and charges	327	4,283	3,807	4,901
Deferred tax liabilities	4,117	103	109	218
Other non-current payables	109	75,580	71,140	92,201
Total non-current liabilities	84,017
CURRENT LIABILITIES		29,347	33,234	26,575
Loans	26,260	11,288	11,553	180
Other financial liabilities	13,024	48,296	41,681	51,034
Trade payables	51,212	5,562	4,794	3,497
Tax payables	4,296	18,094	17,478	18,682
Other payables	19,150	112,587	108,740	99,968
Total current liabilities	113,942
LIABILITIES HELD FOR SALE TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	354,091	359,396	353,624	366,459

Consolidated Income Statement

(€ / 000)	02 2025 (*)	Q2 2024 (*)	H1 2025	HO1 2024
OPERATING REVENUE AND INCOME
Revenue	69,353	75,816	143,000	144,677
Other income	2,372	2,500	5,435	4,638
Total operating revenue and income	71,725	78,316	148,435	149,315
OPERATING COSTS
Materials	(34,838)	(37,985)	(71,876)	(71,296)
Change in inventories	4,530	3,595	6,737	5.313
Services	(13,359)	(13,236)	(26,310)	(25,284)
Personnel costs	(18,194)	(17,633)	(37,103)	(34,735)
Other operating costs	(290)	(746)	(718)	(1,163)
Costs for capitalised in-house work	413	795	1,072	1,524
Total operating costs	(61,738)	(65,210)	(128,198)	(125,641)
OPERATING PROFIT BEFORE DEPRECIATION & AMORTISATION,
CAPITAL GAINS/LOSSES AND IMPAIRMENT LOSSES/REVERSALS OF IMPAIRMENT LOSSES ON NON-	9,987	13,106	20,237	23,674
CURRENT ASSETS (EBITDA)
Amortisation/depreciation	(6,031)	(5,689)	(12,309)	(11,327)
Capital gains/(losses) on disposals of non- current assets	11	12	13	55
Impairment losses/reversal of impairment losses on non-current assets	3	(8)	(109)	(8)
OPERATING PROFIT (EBIT)	3,970	7,421	7,832	12,394
Financial income	141	997	341	1,648
Financial expenses	(3,542)	(1,263)	(4,732)	(2,334)
Net income / (charges) from hyperinflation	689	(1,460)	2,535	(1,119)
Exchange rate gains and losses	792	110	1.351	864
PROFIT BEFORE TAXES	2,050	5,805	7,327	11,453
Income taxes	(166)	(1,445)	(1,219)	(2,625)
PROFIT FOR THE YEAR	1,884	4,360	6,108	8,828
of which Minority interests	435	267	869	465
PROFIT ATTRIBUTABLE TO THE GROUP	1,449	4,093	5,239	8,363

(*) unaudited figures

HALF-YEARLY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2025

Sabaf Group | 2025 Half-Yearly Report

Consolidated statement of financial position

(€ / 000) ASSETS	Notes	30/06/2025	31/12/2024
NON-CURRENT ASSETS
Property, plant and equipment	1	104,005	105,539
Investment property	2	493	537
Intangible assets	3	56,457	60,136
Equity investments	বা	86	86
Non-current receivables	5	පිළිබ	905
Deferred tax assets	23	9,090	10,460
Total non-current assets		171,120	177,663
CURRENT ASSETS
Inventories	હ	65,336	63,132
Trade receivables	7	69,631	64,837
Tax receivables	8	9,082	9,909
Other current receivables	இ	3,596	4,322
Current financial assets	10	1,656	3,120
Cash and cash equivalents	11	33,670	30,641
Total current assets		182,971	175,961
ASSETS HELD FOR SALE
TOTAL ASSETTS		354,091	353,624

SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital	12	12,687	12,687
Retained earnings, Other reserves	13	77,853	88,528
Reserve IAS29		52,818	57,661
Net profit for the period		5,239	6,928
Total equity interest pertaining to the Parent Company		148,597	165,804
Minority interests		7,535	7,940
Total shareholders' equity		156,132	173,744
NON-CURRENT LIABILITIES
Loans	14	75,459	62,855
Post-employment benefits and retirement provisions	16	4,005	4,049
Provisions for risks and charges	17	327	320
Deferred tax liabilities	23	4,117	3,807
Other non-current payables	18	109	105
Total non-current liabilities		84,017	71,140
CURRENT LIABILITIES
Loans	14	26.260	33,234
Other financial liabilities	15	13,024	11,553
Trade payables	19	51,212	41,681
Tax payables	20	4,296	4,794
Other payables	21	19,150	17,478
Total current liabilities		113,942	108,740
LIABILITIES HELD FOR SALE
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		354,091	353,624

Consolidated income statement

(€ / 000)	Notes	H1 2025	H1 2024

OPERATING REVENUE AND INCOME	24	143,000	144,677
Revenue	25	5,435	4,638
Other income		148,435	149,315
Total operating revenue and income
OPERATING COSTS	26	(71,876)	(71,296)
Materials		6,737	5,313
Change in inventories		(26,310)	(25,284)
Services	27	(37,103)	(34,735)
Personnel costs	28	(718)	(1,163)
Other operating costs	29	1,072	1,524
Costs for capitalised in-house work			(125,641)
Total operating costs		(128,198)
OPERATING PROFIT BEFORE DEPRECIATION & AMORTISATION, CAPITAL GAINS/LOSSES AND			23,674
IMPAIRMENT LOSSES/REVERSALS OF IMPAIRMENT LOSSES ON NON-CURRENT ASSETS (EBITDA)		20,237
		(12,309)	(11,327)
Amortisation/depreciation		13	55
Capital gains / (losses) on disposals of non-current assets			(8)
Write-downs/write-backs of non-current assets		(109)
		7,832	12,394
OPERATING PROFIT (EBIT)
	30	341	1,648
Financial income	31	(4,732)	(2,334)
Financial expenses	32	2,535	(1,119)
Net income/(charges) from hyperinflation	33	1,351	864
Exchange rate gains and losses			11,453
PROFIT BEFORE TAXES		7,327
Income taxes	84	(1,219)	(2,625)
		6,108	8,828
PROFIT FOR THE PERIOD
of which Minority interests		869	465
PROFIT ATTRIBUTABLE TO THE GROUP		5,239	8,363
(in €)	35	0.420	0.670
Basic earnings per share Diluted earnings per share	35	0.420	0.670

Consolidated statement of comprehensive income

(€ / 000) NET PROFIT FOR THE PERIOD	HT 2025 6.108	HS 2024 8,828
Total profits/losses that will be subsequently reclassified under profit (loss) for the period:
Forex differences due to translation of financial statements in foreign currencies	(19,597)	(6,943)
Hedge accounting effect of derivative financial instruments Tax effect	103	(79)

Total other profits/ (losses) net of taxes for the period	(19,494)	(7,022)
COMPERHENSIVE INCOME (EXPENSE)	(13,386)	1,806
of which
Net profit for the period attributable to minority interests	869	465
Foreign exchange difference from translation of financial statements of minority interests	(960)	268
MINORITY INTERESTS	(91)	738
COMPREHENSIVE INCOME (EXPENSE) ATTRIBUTABLE TO THE GROUP	(13,295)	1,078

Consolidated statement of cash flows

	HIT 2025	H1 2024
Cash and cash equivalents at beginning of period	30,641	36,353
Net profit / (loss) for the period	6,108	8,828
Adjustments for:
- Depreciation and amortisation for the period	12,309	11,327
- Realised gains/losses	(13)	(55)
- Profits and losses from equity investments		8
- Impairment losses / Reversals of impairment losses on non-current assets	109
- Revaluation IAS 29	1.459	1,779
- Financial income and expenses	1,758	(729)
- IFRS 2 measurement stock grant plan	389	(299)
- Income tax	1,219	2,625 374
- Non-monetary foreign exchange differences Change in post-employment benefits	(1,942) (44)	27
Change in risk provisions	7	(26)

Change in trade receivables	(6,230)	(15,745)
Change in inventories	(6,099)	(4,813)
Change in trade payables	9,972	8,730
Change in net working capital	(2,357)	(11,828)
Change in other receivables and payables, deferred taxes	2,997	3,495
Payment of taxes	(1,146)	(843)
Payment of financial expenses	(1,484)	(2,061)
Collection of financial income	318	1,071
Cash flows from operations	19,687	13,693
Investments in non-current assets
- intangible	(1,423)	(1,351)
- tangible	(10,876)	(5,061)
- financial
Disposal of non-current assets	169	260
Cash flows from investment activities	(12,130)	(6,152)
Free cash flow	7,557	7,541
Repayment of loans	(26,054)	(13,285)
New loans	31,454	5.474
Change in financial assets	1,351	(2,734)
Purchase of treasury shares	(1,262)
Payment of dividends	(7,534)	(7,229)
Cash flows from financing activities	(2,045)	(17,774)
Foreign exchange differences	(2,483)	(575)
Net cash flows for the period	3,029	(10,808)
Cash and cash equivalents at end of period	33,670	25,545

((- /000)	capital Share	premium reserve Share	reserve Legal	Treasury shares	Translatio n reserve	reserve IAS 29	employment reserve benefit Post-	reserves Other	Profit for the year	shareholders' Group equity	Minority interests	Shareholders' equity
Balance at 31 December 2023	12,687	26,160	2,307	(3,683)	(80.428)	48.649	(365)	153,665	3,103	162,095	8,293	170,388
FRS 2 measurement Stock Grant Allocation of 2023 profit - carried forward - dividends			175	1,574				(1,479) (3,848)	(2,928) (175)	(6,776) 95 -	(1,887)	(8,663) 95
I reasury share transactions Hyperinflation (1AS 29) Other changes				(211)		9,012		7,521 (7)		16,533 (211) (7)		16,533 (211) (7)
Other components of the total result Total profit at 31 December 2024 Change in translation reserve					(12,715) (12,715)		1	(139) (139)	6,928 6.928	(12,715) (5,925) 6,790	1,534 569 965	(12,146) (4,391) 7,755
Balance at 31 December 2024	12,687	26.160	2.482	(2,320)	(93,143)	57,661	(364)	155,713	6,928	165,804	7,940	173,744
Allocation of 2024 profit - dividends								(292)	(6,928)	(7,220)	(314)	(7,534)
IFRS 2 measurement Stock Grant Treasury share transactions Hyperinflation (IAS 29) Other changes				(1,262)		(4,843)		9,022 389 2		(1,262) 4,179 389 ನ		(1,262) 4.179 389 ਟ
Other components of the total result Change in translation reserve Total profit at 30 June 2025					(18,637) (18,637)			103 103	5,239 5,239	(18,637) (13,295) 5,342	(960) 869 (91)	(19,597) (13,386) 6,211
Balance at 30 June 2025	12,687	26,160	2,482	(3,582)	(11,780)	52.818	(364)	164,937	5,239	148,597	7,535	156,132

Statement of changes in consolidated shareholders' equity

Sabaf Group | 2025 Half-Yearly Report

ిన

EXPLANATORY NOTES

Basis of presentation and accounting policies used

The half-yearly condensed consolidated financial statements at 30 June 2025 were prepared in accordance with IAS 34 on interim reports. These condensed half-year consolidated financial statements do not include all the information required for the annual financial report and must be read together with the financial statements for the year ended 31 December 2024. Reference to IFRS also includes all current International Accounting Standards (IAS). They have been prepared in euro, rounding amounts to the nearest thousand, and are compared with the halfyearly and annual consolidated financial statements of the previous year, prepared according to the same standards. They consist of the consolidated statement of financial position, the consolidated income statement, the consolidated statement of comprehensive income, the statement of changes in consolidated shareholders' equity, the consolidated statement of cash flows and these explanatory notes.

The half-yearly consolidated financial statements have been prepared on a going concern basis with reference to which the Group assessed that it is a going concern in accordance with paragraphs 25 and 26 of IAS 1 and Art. 2423 bis of the Italian Civil Code, also due to the strong competitive position, positive profitability and solidity of the financial structure.

The consolidation policies, the criteria for translating foreign currency items, the accounting policies and the measurement criteria are the same as those used for preparing the financial statements at 31 December 2024, to which reference should be made for additional information. In order to reflect the higher degree of innovation in the induction sector compared to the other sectors in which the Group operates, as of these half-yearly consolidated financial statements the estimated useful life of development costs related to induction cooking projects has been set at 5 years (previously 10 years). In addition, based on developments in the reference market, as of these half-yearly consolidated financial statements the estimated useful life of the "Customer Relationships" allocated to the Electronic Components CGUs (carrying amount of €12,507 thousand at 30 June 2025) has been set at 10 years (previously 15 years). The adoption of the new standards and amendments effective from 1 January 2025 described below had no significant impact. The Group has not early adopted any new standards, interpretations or amendments issued but not yet in force.

New standards

Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates".

The amendments to IAS 21 specify how to assess whether a currency is exchangeable and how to determine a spot exchange rate if it is not. The amendments also require disclosure of information that enables users of financial statements to understand the impact of a currency not being exchangeable. These amendments had no impact on the Group's half-yearly condensed consolidated financial statements.

Financial statements

The Group has adopted the following formats:

current and non-current assets and current and non-current liabilities are stated separately in the statement of the financial position;
an income statement that expresses costs using a classification based on the nature of each item;
a comprehensive income statement, which records all changes in Other overall earnings (losses) during the year, generated by transactions other than those conducted with shareholders and based on specific IAS/IFRS standards;
a statement of cash flows that presents cash flows originating from operating activity, , using the indirect method.

Use of these formats permits the most meaningful representation of the Group's operating results, financial position and cash flows.

Scope of consolidation

The scope of consolidation at 30 June 2025 comprises the parent company Sabaf S.p.A. and the following companies controlled by Sabaf S.p.A., consolidated on a line-by-line basis:

Faringosi Hinges S.r.l.
Sabaf do Brasil Ltda (Sabaf Brazil)
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf Turkey)
Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China)
A.R.C. S.r.l.
Sabaf India Private Limited (India)
Sabaf Mexico Appliance Components (Sabaf Mexico)
C.M.I. S.r.l.
C.G.D. S.r.l.
P.G.A s.r.l.
Sabaf America Inc. (Sabaf America) ,
Mansfield Engineered Components LLC (MEC)

Control is the power to determine, directly or indirectly, the financial and management policies of an entity so as to obtain benefits from its activities. Subsidiaries are consolidated from the date on which control begins until the date on which control ceases.

With respect to 30 June 2024 and 31 December 2024, Sabaf U.S. is no longer included in the scope of consolidation, as it was dissolved.

The companies in which Sabaf S.p.A. simultaneously possess the following three elements are considered subsidiaries: (a) power over the company; (b) exposure or rights to variable returns resulting from involvement therein; (c) ability to affect the size of these returns by exercising power. If these subsidiaries exercise a significant influence, they are consolidated as from the date in which control begins until the date in which control ends so as to provide a correct representation of the Group's operating results, financial position and cash flows.

Consolidation criteria

The criteria applied for consolidation are as follows:

a) Assets and liabilities, income and costs in financial statements consolidated on a line-byline basis are incorporated into the Group financial statements, regardless of the entity of the equity interest concerned. In addition, the carrying value of equity interests is eliminated against the shareholders' equity relating to investee companies.
b) Positive differences arising from elimination of equity investments against the carrying value of shareholders' equity at the date of first-time consolidation are attributed to the higher values of assets and liabilities when possible and, for the remainder, to goodwill.
c) Payable/receivable and cost/revenue items between consolidated companies and profits/losses arising from intercompany transactions are eliminated.
d) If minority shareholders exist, the portion of shareholders' equity and net profit for the period pertaining to them is posted in specific items of the consolidated statement of financial position and income statement.

Conversion into euro of foreign-currency income statements and statements of financial position

Separate financial statements of each company belonging to the Group are prepared in the currency of the country in which that company operates (functional currency). For the purposes of the consolidated financial statements, the financial statement of each foreign entity is expressed in euro, which is the Group's functional currency and the reporting currency for the consolidated financial statements.

The balance sheet items in accounts expressed in currencies other than euro are converted by applying current end-of-year exchange rates. Income statement items are converted at average exchange rates for the period, with the exception of the financial statements of the two Turkish subsidiaries operating in an hyperinflationary economy whose income statements are converted by applying the end-of-year exchange rate as required by IAS 21 paragraph 42.b.

Foreign exchange differences arising from the comparison between opening shareholders' equity converted at current exchange rates and at historical exchange rates, together with the difference between the net result expressed at average and current exchange rates, are allocated to "Other Reserves" in shareholders' equity.

The exchange rates used for conversion into euro of the statements of financial position of the foreign subsidiaries, prepared in local currency, are shown in the following table:

Description of currency	Exchange rate in effect at 30/06/2025	Average exchange rate 01/01/2025 - 30/06/2025	Exchange rate in effect at 31/12/2024	Exchange rate in effect at 30/06/2024	Average exchange rate 01/01/2024 - 30/06/2024
Brazilian real	6.4384	6.2913	6.42530	5.8915	5.4922
Turkish lira	46.5682	41.0912	36.73720	35.1868	34.2364
Chinese renminbi	8.3970	7.9238	7.58330	7.7748	7.8011
Indian Rupee	100.5605	94.0693	88.93350	89.2495	89.9862
Mexican peso	22.0899	21.8035	21.55040	19.5654	18.5089
US Dollar	1.1720	1.0928	1.03890	1.0705	1.0813

Segment reporting

The Group's operating segments in accordance with IFRS 8 - Operating Segments are the business segments that generate revenue and costs, whose results are periodically assessed by top management in order to assess performance and decisions regarding resource allocation. The Group operating segments are the following:

gas parts (household and professional);
hinges;
electronic components;
components for induction cooking.

Use of estimates

The preparation of the half-yearly financial statements and the notes thereto in accordance with the IFRS requires the Directors to make estimates and assumptions that affect the carrying amount of revenue, costs, assets and liabilities of the half-yearly financial statements and the disclosures on contingent assets and liabilities at 30 June 2025. In the event that in future these estimates and assumptions, which are based on the Directors' best assessments, should deviate from actual circumstances, they will be amended appropriately at the time the circumstances change. Estimates and assumptions are regularly reviewed and the effects of each change immediately reflected in the income statement.

In these half-year consolidated financial statements, the calculation of the income taxes generated in Turkey is estimated in accordance with current tax legislation, which may be subject to further changes during the year.

Furthermore, certain measurement processes, particularly the more complex ones such as the identification of any impairment losses on non-current assets, are generally carried out in full only as part of the preparation of the annual financial statements, when all information that could be necessary is available, except when there are impairment indicators that require an immediate impairment test.

Hyperinflation - Turkey: application of IAS 29

In the half-yearly condensed consolidated financial statements at 30 June 2025, IAS 29 was applied with reference to the subsidiary Sabaf Turkey. The effect related to the re-measurement of non-monetary assets and liabilities, equity items and income statement items in the first half of 2025 was recognised in a separate item in the income statement under financial income and expenses. The related tax effect was recognised in taxes for the period.

The cumulative levels of general consumer price indices are shown below:

Consumer price index		Value at 31/12/2024 Value at 30/06/2025	Change
TURKSTAT	2,684.55	3.132.17	+16.67%
Consumer price index		Value at 31/12/2023 Value at 31/12/2024	Change
TURKSTAT	1,859.38	2.684.55	+44.38%
Consumer price index		Value at 31/12/2023	Change
TURKSTAT	1.859.38	2.319.29	+24.73%

Effects of the application of the hyperinflation on the Consolidated Statement of Financial

Position

	30/06/2025	Hyperinflation effect	30/06/2025 with Hyperinflation effect
(E/000)	139.206	31,914	171,120
Total non-current assets		806	182,971
Total current assets	182,165		354.091
Total assets	321,371	32,720
Total shareholders' equity	123.412	32,720	156.132
	84,017		84.017
Total non-current liabilities	113,942	1	113,942
Total current liabilities
Total liabilities and shareholders'	321,371	32,720	354.091

equity equity
Effects of the application of the hyperinflation on the Consolidated Income Statement

	GMT 2025	Hyperinflation elitect	6 months 2025 with Hyperinflation effect
(( /000)		(2,809)	148,435
Operating revenue and income	151.244		128,198)
Operating costs	(129,917)	1,719
	21,327	(1,090)	20.237
EBITDA	11,065	(3,233)	7.832
EBIT		(972)	7,327
Profit before taxes	8,299		(1,219)
Income taxes	(732)	(487)
	869		869
Minority interests		(1,459)	5,239
Net result for the period	6,698

Comments on the main items of the statement of financial position

1. PROPERTY, PLANT AND EQUIPMENT

	Property	Plant and	Other assets	Assets under	l otal
		equipment		construction
Cost
At 31 December 2024	80,791	275,177	76,382	3.839	436,189
Increases	558	2,881	1.779	6.307	11.525
Reclassifications		1,602	194	(1,805)	(9)
Disposals	(274)	(1,432)	(18)	(5)	(1,729)
Monetary revaluation (IAS 29)	1,187	3,890	1,399		6,476
Forex differences	(2,757)	7,577)	(2,440)	(206)	(12,980)
At 30 June 2025	79,505	274,541	77,296	8,130	439,472
Accumulated depreciation At 31 December 2024	36,619	228,422	65,609	-	330,650

Increases	1.648	5.578	2,309	-	9.535
Write-downs		109			109
Disposals	(274)	(1,138)	(85)		(1,497)
Monetary revaluation (IAS 29)	468	2,074	1,004		3,546
Forex differences	(991)	4,147)	(1,738)	-	(6,876)
At 30 June 2025	37,470	230,898	67,099	-	335,467
Carrying amount
At 31 December 2024	44,172	46,755	10.773	3,839	105,539
At 30 June 2025	42,035	43,643	10,197	8,130	104,005

The investments during the period were aimed at the Group's organic growth in terms of internationalisation and product innovation, as well as optimising the efficiency and automation of production processes. They included those related to the fourth die-casting island at the Mexican plant. Assets under construction include:

· the construction of a 2.5 MW photovoltaic plant at the Ospitaletto factory (€2,189 thousand);
· the replacement of the current die-casting waste treatment system at the Ospitaletto plant (electric evaporator) with a chemical-physical treatment system, which will significantly reduce the associated energy consumption (€347 thousand).

Decreases mainly relate to the disposal of machinery no longer in use.

Assets under construction include machinery under construction and advance payments to suppliers of capital equipment.

The carrying amount of the item "Property" is made up as follows:

	30/06/2025	31/12/2024	Change
.and	9.298	9,527	(229
Indistrial huilding	32.737	34,645	1,908
Total	42,035	44,172	14,151

Changes in property, plant and equipment resulting from the application of IFRS 16 are shown below:

	Property	Plant and equipment	Other assets	l'otal
At 31 December 2024	5,508		1,028	6,543
Increases	193	-	383	576
Monetary revaluation (IAS 29)	233	=		233
Decreases		-	(77)	(77)
Reclassifications	(40)	=		(40)
Depreciation	(681)	(7)	(170)	(858)
Foreign exchange differences	493)	-		(493)
At 30 June 2025	4,720		1,164	5,884

At 30 June 2025, the Group found no endogenous indicators of impairment of its property, plant and equipment. Consequently, no impairment test was carried out.

2. INVESTMENT PROPERTY

Cost
At 31 December 2024	1,606
Increases
Disposals
At 30 June 2025	1,606
Accumulated depreciation and impairment losses
At 31 December 2024	1,069
Depreciation for the period	44
Derecognition due to disposal
At 30 June 2025	1,113
Carrying amount
At 31 December 2024	537
At 30 June 2025	493

Disposals during the period resulted in capital gains totalling €31 thousand.

Changes in investment property resulting from the application of IFRS 16 are shown below:

40



20
20

This item includes non-operating buildings owned by the Group: these are mainly properties for residential use, located in Ospitaletto near Sabaf S.p.A.'s headquarters, held for rental or sale.

At 30 June 2025, the Group found no endogenous or exogenous indicators of impairment of its investment property. Consequently, no impairment test was carried out.

3. INTANGIBLE ASSETS

	Goodwill	Patents, software	Development	Other	Total
		and	costs	intangible
		know-how		assets
Cost
At 31 December 2024	38,271	11,801	14,924	34,186	99,182
Increases		445	965	13	1.423
Decreases		(2)			(2)
Reclassifications		579	(566)	(8)	5
Monetary revaluation (IAS 29)	2,531	124	-	1,640	4,295
Forex differences	(3,961)	(197)	(8)	(2,929)	(7,095)
At 30 June 2025	36,841	12,750	15,315	32,902	97,808
Accumulated amortisation
At 31 December 2024	7,461	10,853	6,969	13,763	39,046
Increases		270	855	1,660	2,785
Decreases
Reclassifications
Monetary revaluation (IAS 29)		109	-	776	885
Forex differences		(176)		(1,189)	(1,365)
At 30 June 2025	7,461	11,056	7,824	15,010	41,351
Carrying amount
At 31 December 2024	30,810	948	7,955	20,423	60.136
At 30 June 2025	29,380	1,694	7,491	17,892	56,457

Goodwill

In accordance with IAS 36, goodwill is allocated to cash-generating units ("CGUs") identified on the basis of operating segments and legal entities that correspond to the acquired businesses. The CGUs to which goodwill has been allocated are shown below:

ceu	31/12/2024	Revaluation IAS 29	Forex differences	30/06/2025
Professional burners	1,770	1	: I	1,770
Electronic components	18,299	2.531	(3,865)	16,965
PGA electronic components	1,804	. T		1,804
Hinges	4,414	1		4,414
C.M.I. hinges	3,680	t	1	3,680
MEC hinges	843	T	(96)	747
Total	30,810	2,531	(3,961)	29,380

The Group tests goodwill for impairment at least once a year or more frequently it there are The Group tests goodwill for impartient at least of each of through value of use, by discounting expected cash flows.

discounting expected cash ilows.
At 31 December 2024, the Group had performed an impairment test on the gognised At 31 December 2024, the Group had penomics an Inficit information, reference should
in the period 2025-2027, using a plan for each CGU. For further information 2024, in the period 2020-2027, assing as a statements at 31 December 2024.

During the preparation of these half-yearly condensed consolidated financial statements, an During the preparation of these flair-yearly any impairses onsidering both external
analysis was carried out in order to identify any imparimes were carried out affalysis was carried outparticular, the following activities were carried out:

= and that for the first half of 2024;
and that for the inst half of 2024,
confirmation of the expected results for future years, as per the 2025-2027 plans drawn
t the expected results for interest took of the ti up by management during the impairment test at 31 December 2024;
up by management during the inpairment to f assets allocated to individual CGUs at 30
analysis of changes in the carrying amounts of assets allocated to individual CGUs at 30 June 2025, compared to 31 December 2024;
June 2025, compared to 51 December 2025, of the rates that formed the basis for analysis of the trend, in the mist han of 2005, of the impairment test at 31 December 2024
(Wacc); (Wacc);
= review of the sensitivity analyses performed as part of the impairment tests at 31 December 2024;
December 2024;
analysis of market trends and the evolution of the context in which the Group operates;
of market trends and the evolution of the entire Sabaf Group
= analysis of mance tromic performance of the entire Sabaf Group.

Finally, the Group assessed the relationship between the market capitalisation (€184.7 million), Finally, the Group assessed the Group's shareholders' equity at 30 June 2025 (€148.6 million),
and the carrying amount of the Group's shareholders' equity at 30 June 2025 (€1 which shows a largely positive difference.

The financial performance of the "Electronic Components" CGU were lower than the budget. The financial performance of the impairment test at 31 December 2024 was updated Therefore, the most recent data available. This analysis, which was approved by the Board of based on the most recent data available. This affect of the new estimates is more than offset. Directors on 4 September 2023, silovs that (Fel.7 million compared to 31 December 2024).
by the reduction in net invested capital (Fel.7 million compared to the CGU, by the reduction in Their Invested Capital (Capital (C ... ) ... .............................................................................................................

The analyses carried out on all other CGUs confirmed that there were no elements indicating a The analyses carried out on all only Coos conf the company's assets. Therefore, there was no
possible reduction in the recoverable anount of 30. June 2025 possible reduction update any impairment tests at 30 June 2025.

Development costs

Development costs
Development costs mainly refer to the development of new products to extend the range and Development costs mainly releit on cooking sector (carrying amount at 30 June 2025: €5.166
features offered within the induction cooking sector up to develop the project know features offered within the induction cooking best (cam was set up to develop the project know-how inthousand). To this end, a specific project team was set up to develop t house, with patents, proprietary software and hardware.

Other intangible assets

Other intangible assets
Other intangible assets mainly refer to the purchase price allocation carried out following the Other infangible assets manny relev to the personer 2018), of C.M.I. S.r.l. (in July 2019), of P.G.A. (in
acquisition of Okida Elektronik (in September 2018), of C.M.I. S.r.l October 2022) and of MEC (in July 2023).

The carrying amount of other intangible assets is broken down as follows;

	30/06/2025	31/12/2024	Change
Customer relationship	12.507	14,351	(1,844)
Brand	3.271	3,518	(247)
Know-how	400	567	(167)
Patents	1.508	1.776	(268)
Other	206	211	(5)
Total	17.892	20.423	(2,531

With respect to patents, software, development costs and other intangible assets, no internal and external indicators that would require the performance of an impairment test were identified.

4. EQUITY INVESTMENTS

	30/06/2025	31/12/2024	Change
Other equity investments	86	ರಗ
liotal	86	86

5. NON-CURRENT RECEIVABLES

	30/06/2025	31/12/2024	Change
Tax receivables	153	63	90
Guarantee deposits	191	197	6)
Receivables from former P.G.A. shareholders	645	645
Total	989	905	84

Tax receivables relate to indirect taxes expected to be recovered after 30 June 2026. Receivables from former P.G.A. shareholders, already agreed upon between the parties and discounted, refer to compensation obligations envisaged upon the occurrence of certain events (liabilities incurred by P.G.A.) regulated by the acquisition agreement.

6. INVENTORIES

	30/06/2025	31/12/2024	Change
Raw Materials	30.028	29.476	552
Semi-processed goods	17.123	17.442	(319)
Finished products	23.705	21,604	2.101
Provision for inventory write-downs	(5.520)	(5.390)	(130)
Total	65.336	63.132	2.204

At 30 June 2025, inventories were slightly up on the balance at 31 December 2024, due to the different seasonality and higher purchase prices of raw materials.

At 30 June 2025, their carrying amount was adjusted based on an improved estimate of the idle capacity and obsolescence risk, measured by analysing slow and non-moving inventory.

7. TRADE RECEIVABLES

	30/06/2025	31/12/2024	Change
l'otal trade receivables	70.630	65.891	4.739
Bad debt provision	(ggg)	1.054	55
Net total	69.631	64.887	4.794

The increase in trade receivables at 30 June 2025 compared to 31 December 2024 is due to seasonality. There were no significant changes in the payment terms agreed with customers.

Trade receivables include insured receivables worth approximately €28 million (€18.5 million at 31 December 2024).

The breakdown of trade receivables by past due period is shown below:

	30/06/2025	31/12/2024	Change
Current receivables (not past due)	58,258	49,638	8.890
Outstanding up to 30 days	8.503	9.856	(1,353)
Outstanding from 30 to 60 days	1.986	3,114	1,128)
Outstanding from 60 to 90 days	814	1.209	(395)
Outstanding for more than 90 days	1,069	2.344	1,275)
Total	70,630	65,891	4.151

The bad debt provision was adjusted to the better estimate of the credit risk and expected loss at the end of the period. Changes during the period were as follows:

31/12/2024	1,054
Provisions	11
Utilisation	-
Forex differences	(66
30/06/2025	999

8. TAX RECEIVABLES

	30/06/2025	31/12/2024	Change
For income tax	2.553	3.813	1,260)
For VAT and other sales taxes	6.483	5.997	486
Other tax credits	46	99	(53)
Total	9,082	9,909	827

At 30 June 2025, income tax receivables mainly include:

· €531 thousand relating to the tax credit for investments in capital goods;
· €79 thousand relating to the tax credit for research and development;
· €635 thousand related to the "Patent Box" tax credit for 2020 and 2021, following the prior agreement signed with the Tax Authorities in 2023;
advance payments on Italian income taxes: IRES for €720 thousand and IRAP for €185 . thousand.

9. OTHER CURRENT RECEIVABLES

	30/06/2025	31/12/2024	Change
Advances to suppliers	839	1.888	(1,049)
Credits to be received from suppliers	248	951	(703)
Accrued income and prepaid	1.873	1,197	676
expenses
Other	636	286	350
Total	3.596	4,322	(726)

Credits to be received from suppliers mainly refer to bonuses paid to the Group for the attainment of purchasing objectives.

The increase in accrued income and prepaid expenses at 30 June 2025 compared to 31 December 2024 is due to the recognition of costs or revenues whose collection or payment occurs annually at the beginning or end of year, such as insurance premiums.

	30/06/2025	31/12/2024	Change
Time deposits and other financial assets	1,268	2.744	.1,476)
Derivative instruments on interest rates	223	376	153)
Currency derivatives	143		143
Commodity derivatives	22		22
Total	1.656	3.120	(1,464)

10. CURRENT FINANCIAL ASSETS

Time deposits mainly refer to certain foreign subsidiaries; these are temporary investments of liquidity in excess of normal operations at better yields than ordinary deposits.

Derivative instruments on interest rates refer to an interest rate swap (IRS) whose amount and maturity coincides with an unsecured loan currently being repaid, whose residual balance at 30 June 2025 is €7,405 thousand. This derivative has not been designated as a cash flow hedge and, therefore, was recognised at fair value through profit or loss, with a balancing entry under "Financial income". Currency derivatives relate to forward sales contracts of US dollars, recognised in accordance with the hedge accounting method, to hedge Group sales expressed in that currency. Commodity derivatives, also recognised in accordance with the hedge accounting method, relate to a commodity swap entered into during the period to hedge the risk of fluctuations in the market price of aluminium. With respect to contracts recognised in accordance with the hedge accounting method, the Group checks compliance with the applicable requirements of IFRS 9 by recognising the effective portion of the hedge in a specific equity reserve (note 13).

11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents, which amounted to €33,670 thousand at 30 June 2025 (€30,641 thousand at 31 December 2024), consist of cash and bank current account balances of which €26,654 thousand related to the Italian group companies. Changes in the cash and cash equivalents are analysed in the statement cash flows.

12. SHARE CAPITAL

Sabaf S.p.A.'s share capital at 30 June 2025 consists of 12,686,795 shares with a par value of €1.00 each and has not changed compared with 31 December 2024.

13. TREASURY SHARES AND OTHER RESERVES

At 30 June 2025, Sabaf S.p.A. held 238,983 treasury shares (1.884% of the share capital), recognised as an adjustment to shareholders' equity at a weighted average unit value of € 14.99 (the closing stock market price of the Share at 30 June 2025 was €14.50). There were 12,477,812 outstanding shares at 30 June 2025.

Stock grant reserve

"Retained earnings, other reserves" of €77,853 thousand (31 December 2024: €88,528 thousand) include the stock grant reserve of €783 thousand, which includes the 30 June 2025 measurement of the fair value of the rights assigned to receive shares of the Parent Company relating to the 2024 - 2026 Stock Grant Plan, medium- and long-term incentive plan for directors and employees of the Sabaf Group. For additional information, reference should be made to note 39.

Cash Flow Hedge reserve

The following table shows the change in the Cash Flow Hedge reserve related to the application of IFRS 9 on derivative contracts and referring to the recognition in equity of the effective part of the derivative contracts entered into to hedge the currency, interest rate and raw material price risk to which the Group applies hedge accounting. For additional information, reference should be made to notes 10 and 15.

Value at 31 December 2024
Change during the period	169
Value at 30 June 2025

14. LOANS

	30/06/2025		31/12/2024
	Current	Non-current	Total	Current	Non-current	l'otal
Bond issue		29.773	29.773		29.755	29,755
Unsecured loans	19,328	41.430	60.758	18.508	28,246	46.754
Short-term bank loans	5.000		5,000	1,000	-	1,000
Advances on bank receipts or invoices	13		13	1.711		1,711
Leases	1.726	4,256	5,982	1.786	4.854	6,640
Interest payable	193		193	229		229
Total	26,260	75,459	101,719	33,234	62,855	96,089

Changes in loans over the half-year are shown in the statement of cash flows.

In 2021, Sabaf S.p.A. issued a €30 million bond fully subscribed by PRICOA with a maturity of 10 years, an average life of 8 years and a fixed coupon of 1.85% per year. The loan has some covenants, defined with reference to the consolidated financial statements at the reporting date

and at 30 June each year, all complied with at 30 June 2025 and for which, according to the Group's business plan, compliance is also expected in subsequent years.

During the first half of 2025, the Group took out new unsecured loans totalling €31 million to finance investments and extend the average term of its financial debt. All loan agreements have an original maturity of 5 years and are repayable in instalments.

Some unsecured loans include financial covenants which, at 30 June 2025, had been fully complied with and for which compliance is also expected at 31 December 2025.

To manage the interest rate risk, the bond issue and some unsecured loans were either fixedrate or hedged by IRS, with a total residual value of €76,952 thousand at 30 June 2025. On the other hand, the residual value of unsecured loans taken out at a variable rate and not covered by IRS was €13,579 thousand.

The following table shows the changes in lease liabilities during the first half of 2025:

Lease liabilities at 31 December 2024	6,640
New agreements signed during the first half of 2025	1.938
Repayments during the first half of 2025	2,150
Forex differences	446
Lease liabilities at 30 June 2025	5.982

Lease liabilities at 30 June 2025 include operating leases of €5,589 thousand and finance leases of €393 thousand, all recognised in accordance with IFRS 16.

15. OTHER FINANCIAL LIABILITIES

	30/06/2025		31/12/2024
	Current	Non-current	Current	Non-current
Option on MEC minorities	12.909		11.469
Derivative instruments on			84
interest rates	115
Total	13,024		11.553

As part of the acquisition of MEC, a call option in favour of Sabaf for the remaining 49% of the share capital, exercisable from 2028, and a put option in favour of the minority shareholders, exercisable from 2025 to 2028, were subscribed. The valuation of the residual share will be based on an Enterprise Value equal to 8 times MEC's average EBITDA of the two financial statements preceding the date of exercise of the relevant option, adjusted for the net financial position at that date. The assignment of an option to sell in the terms described above (put option) required the recording of a liability corresponding to the estimated redemption value, expected at the time of any exercise of the option. To this end, a financial liability of €11,469 thousand was recognised in the consolidated financial statements at 31 December 2024. As required by IFRS 9, the Group redetermined the estimated outlay based on MEC's most recent results and increased the liability by €1,440 thousand following the net effect of financial charges of €2,942 thousand and exchange gains of €1,502 thousand.

Derivative instruments refer to five interest rate swaps (IRS) entered into during the period with Derivative instruments refer to live intelest race stact are currently being repaid.
amounts and maturities coinciding with five and These derivatives were designated amounts and maturities collicialize with investigated in the secondance, with the hedge accounting whose residual balance at 30 June 2020 is e36,200 thousands with the hedge accounting
as cash flow hedges and therefore accounted for in accordance with the hedge accounting method (note 13).

16. POST-EMPLOYMENT BENEFITS AND RETIREMENT PROVISIONS

	30/06/2025	31/12/2024	Change
		4.049
Post-employment benefits	4.005		(44)
Total	4,005	4,049

17. PROVISIONS FOR RISKS AND CHARGES

	31/12/2024	Provisions	Utilisation	Exchange rate differences	30/06/2025
Provision for agents'	191	5	(12)	-	184
indemnities			(6)		54
Product guarantee fund	31	29	(8)		89
Provision for legal risks	98	1	(26)	1	327
Total	320	34

The provision for agents' indemnities covers amounts payable to agents if the Group terminates

the agency relationship the agency relationship.
The product guarantee fund covers the risk of returns or charges by customers for products

already sold. already sold.
The provision for legal risks, set aside for minor disputes, was partially released during the period given the settlement of some of the outstanding disputes.

The provisions for risks, which represent the estimate of future payments made based on
The provisions for risks, which represent the effect is considered negligible. The provisions for risks, which replesent the estause the effect is considered negligible.

18. OTHER NON-CURRENT LIABILITIES

	30/06/2025	31/12/2024	Change
Intal	00 1087	109

Other non-current liabilities refer to payables to the tax authorities, which will be paid in 2026.

19. TRADE PAYABLES

	30/06/2025	31/12/2024	Change
		41,681	9.531
Total	51,212

At 30 June 2025, there were no overdue payables of a significant amount and the Group did not a
nd and the country of any and secures blac receive any injunctions for overdue payables.

20. TAX PAYABLES

	30/06/2025	31/12/2024	Change
Income tax payables	1.312	1.118	(466)
Withholding taxes	1.677	1.664	13
Other tax payables	1.307	1.352	45
Total	4.296	4,794	(498)

21. OTHER CURRENT PAYABLES

	30/06/2025	31/12/2024	Change
To employees	9.062	6.978	2,084
To social security institutions	3.159	3,410	251
To agents	313	337	(24)
Advances from customers	1.359	884	475
Other current payables, accrued expenses and deferred income	5.257	5,869	(612)
Total	19,150	17,478	1,672

At 30 June 2025, payables due to employees included amounts for the thirteenth month's pay and for holidays accrued but not taken.

22. TOTAL FINANCIAL DEBT

		30/06/2025	31/12/2024	Change
A.	Cash	33.670	30.641	3,029
B.	Cash equivalents
C.	Other current financial assets	1,656	3,120	(1,464)
D.	Liquidity (A+B+C)	35,326	33,761	1,565
E.	Current financial payable	19,396	26,279	(6,883)
F.	Current portion of non-current financial debt	19,888	18,508	1,380
G.	Current financial debt (E+F)	39,284	44,787	(5,503)
H.	Net current financial debt (G-D)	3,958	11,026	(7,068)
I.	Non-current financial payable	45,686	33,100	12,586
J.	Debt instruments	29.773	29.755	18
K.	Trade payables and other non-current payables
L.	Non-current financial debt (I+J+K)	75,459	62,855	12,604
171.	Total financial debt (H+L)	79,417	73,881	5,536

The consolidated statement of cash flows, which shows the changes in cash and cash equivalents (sum of letters A. and B. of this statement), describes in detail the cash flows that led to the change in the net financial debt.

23. DEFERRED TAX ASSETS AND LIABILITIES

	30/06/2025	31/12/2024	Change
Deferred tax assets	9.090	10.460	1,011
Deferred tax liabilities	4,117	3.807
Net position	4,973	6.653	1,680

The table below analyses the nature of the temporary differences that determine the recognition of deferred tax liabilities and assets and changes during the period under review:

	Non-current tangible and intangible assets	Provisions, valne	Fair value of derivative adjustments instruments	Goodwill	Tax incentives	Tax losses	Actuarial evaluation of post- employment benefits	effect	Other temporary differences	Total
31/12/202 4	(1,254)	2,226	(92)	532	4,429	797	122	(1,308)	1,201	6,653
Through profit or loss	70	(610)	37	(89)	124	793	0	(131)	(174)	20
In shareholders' equity	0	0	(33)	0	0	0	0	0	0	(33)
Reclassificati on						(609)				(609)
Forex differences	(366)	(34)	0	0	(835)	0	0	276		(1,058)
30/06/202 5	(1,550)	1,582	(88)	443	3,618	981	122	(1,163)	1,028	4,973

Deferred taxes related to "non-current property, plant and equipment and intangible assets" arise from the difference between the related carrying amount and the amount calculated for tax purposes (purchase price allocation, tax revaluations made in previous years on Sabaf Turkey's assets, other differences).

Deferred tax assets relating to goodwill refer to the exemption of the carrying amount of the investment in Faringosi Hinges S.r.l. made in 2011 pursuant to Italian law Decree 98/2011, deductible in ten instalments starting in 2018.

Deferred tax assets relating to tax incentives are commensurate to investments made in Turkey, for which the Group will benefit from a direct tax deduction. The tax effects of the application of IAS 29 and hyperinflation according to the rules in Turkey are cumulatively shown in the column "Hyperinflation" and reflect the changed local regulations and the partial recognition of hyperinflation for tax purposes.

Comments on key income statement items

24. REVENUE

In the first half of 2025, revenue from sales totalled €143.000 million, down by 1.2% compared to €144.677 million in the same period of the previous year.

Please refer to the Interim Report on Operations for comments on the change in revenue.

Revenue	H1 2025	%	H1 2024	%	% change
Europe (excluding Turkey)	42,291	29.5%	41,700	28.8%	+1.4%
Turkey	33,698	23.6%	37,878	26.2%	-11.0%
North America	33,145	23.2%	30,629	21.2%	+8.2%
South America	18.418	12.9%	17.664	12.2%	+4.3%
Africa and Middle East	6,615	4.6%	9,299	6.4%	-28.9%
Asia and Oceania	8,833	6.2%	7.507	5.2%	+17.7%
Total	143,000	100%	144,677	100%	-1.2%

Revenue by geographical area

Revenue by product family

Revenue	H1 2025	0/0	H1 2024	0/0	% change
Gas parts	84.584	59.2%	85.756	59.2%	-1.4%
Hinges	46.521	32.5%	44.078	30.5%	+5.5%
Electronic components	11,777	8.2%	14.612	10.1%	-19 4%
Induction	118	0.1%	231	0.2%	-48.9%
Total	143,000	100%	144,677	100%	-1.2%

25. OTHER INCOME

	H1 2025	H1 2024	Change
Sale of trimmings and raw materials	2.674	2.513	161
Contingent income	385	221	164
Rental income	30	34	4)
Release of risk provisions	26	8	18
Other income	2.320	1,862	458
Total	5,435	4,638	797

Other income mainly includes compensation (€960 thousand), tax benefits for investments in capital goods and research and development (€494 thousand), Turkish government grants (€235 thousand) for the hiring of personnel, revenues from the sale of moulds and equipment (€134 thousand) and revenues from the sale of energy produced by photovoltaic plants (€45 thousand).

26. MATERIALS

	H1 2025	H1 2024	Change
ommodities and outsourced components	66.657	65.883
Consumables		5.413
Total	71,876	71,296	580

The costs for the purchase of materials in the first half of 2025 are substantially in line with those recorded in the same period of the previous year. During the first half of 2025, the trend of actual purchase prices for the main raw materials (aluminium alloys, steel and brass) had a negative impact of 0.5% on sales compared to the same period in 2024. Consumption (purchases plus change in inventories) as a percentage of sales was 45.6% in the first half of 2025 (unchanged from the first half of 2024).

27. COSTS FOR SERVICES

	H1 2025	H1 2024	Change
Outsourced processing	6.133	6,028	105
Natural gas and electricity	4,795	4.523	272
Maintenance	3.986	3,597	389
Advisory services	1.151	1,281	(130)
Transport and export expenses	3,000	2,664	336
Travel expenses and allowances	466	455	11
Directors' fees	587	601	(14)
Commissions	848	828	20
Insurance	695	582	113
Waste disposal	372	331	41
Canteen	608	603	5
Use of temporary agency workers	159	170	(11)
Other costs	3.510	3.621	(11)
Total	26,310	25,284	1,026

The main outsourced processing include hot moulding of brass and steel blanking as well as some mechanical processing and assembly. Other costs included expenses for the registration of patents, waste disposal, cleaning, leasing third-party assets and other minor charges.

28. PERSONNEL COSTS

	H1 2025	H1 2024	Change
Salaries and wages	25,152	22,782	2,370
Social Security costs	7,067	6.936	131
Post-employment benefits and supplementary pension	1.470	1,356	114
Temporary agency workers	2.691	3.327	636)
Stock grant plan	389	(299)	688
Other costs	334	633	(299)
Ilotal	37,103	34,735	2,368

The Group headcount at 30 June 2025 was 1,782 employees compared to 1,758 at 30 June 2024. The number of employees compared to the previous year increased by 24. The increase in personnel costs compared to the same period of the previous year is mainly due to the inflation trends of the period.

"Stock Grant Plan" of €389 thousand includes the recognition of the fair value of the rights assigned to receive shares of the Parent Company relating to the 2024 - 2026 Stock grant plan for the period, increasing personnel costs.

On the other hand, in the first half of 2024, the final recognition of the fair value of the previous 2021 - 2023 Stock grant plan was recognised as a reduction in personnel costs (€299 thousand). For additional information, reference should be made to notes 13 and 39.

29. OTHER OPERATING COSTS

	H1 2025	H1 2024	Change
Non-income related taxes and	329	340	(11)
duties
Contingent liabilities	171	176	(5)
Accruals to provisions	34		34
for risks and charges
Bad debt provision	11	381	(370)
Other operating costs	173	266	(83)
Total	718	1.163	(445

Non-income taxes chiefly relate to property tax.

30. FINANCIAL INCOME

	H1 2025	H1 2024	Change
Interest from time deposit	100	669	(569)
MEC option valuation adjustment (note 15)		568	(568)
Interest rate derivatives	ന	182	(179)
Interest from bank current accounts	208	209	(1)
Other financial income	30	20	10
Total	341	1,648	(1,307)

Interest from time deposits of €100 thousand related to interest accrued on time deposit accounts opened by certain foreign subsidiaries; these are temporary investments of liquidity in excess of normal operations at better yields than ordinary deposits.

31. INCOME/EXPENSES FROM HYPERINFLATION

	H1 2025	H1 2024	Change
Income from hyperinflation	2,535		2.535
Expenses from hypenntlation		1,119	1. 2 4 1
Total	2,535	1,119)	3,654

As from 2022, the effect of inflation accounting on the Turkish subsidiaries has been recognised in the financial statements. During the period, this resulted in the recognition of income of €2,535 thousand. For an appropriate and detailed analysis, please refer to the specific paragraph in the Explanatory Notes to these Financial Statements. The effects of applying IAS 29 to each item in the consolidated income statement are also shown in the annex to the Report on Operations.

32. FINANCIAL EXPENSES

	H1 2025	H1 2024	Change
MEC option valuation
adjustment (note 15)	2.942		2,942
Interest paid to banks	1.291	1.898	(607
Interest paid on leases and rents	156	162	(6)
Banking expenses	129	98	31
Other financial expense	214	176	37
Financial expenses	4,732	2,334	2,398

33. EXCHANGE RATE GAINS AND LOSSES

In the first half of 2025, the Group recognised net exchange rate gains of €1,351 thousand (€864 thousand in the same period of 2024). These include €1,502 thousand related to the adjustment of the carrying amount of the MEC option (note 15)

34. INCOME TAXES

	H1 2025	H1 2024	Change
Current taxes	1,199	2,302	1,103
Deferred tax liabilities	20	323	303
Total	1.219	2,625	1.406)

During the first half of the year, the Group recognised lower taxes in connection with the tax benefits generated by the investments made in Turkey (approximately €800 thousand).

35. EARNINGS PER SHARE

Basic and diluted EPS are calculated based on the following data:

Profit

	H1 2025	H1 2024

Net result for the period	U,LUJ	Shop

Number of shares

H1 2025	H1 2024
12,471,329	12,473,540
0	0
12,471,329	12,473,540
H1 2025	H1 2024
Euro	Euro
0.420	0.670
0.420	0.670

The number of shares for measuring the earnings per share was calculated net of the average number of shares in the portfolio.

36. DIVIDENDS

On 28 May 2025, a dividend of €0.58 per share was paid to shareholders (total dividends of €7,220 thousand), implementing the resolution to allocate the 2024 profit approved by Sabaf S.p.A. shareholders in their meeting on 29 April 2025.

37. INFORMATION BY BUSINESS SEGMENT

Below is the information by business segment for the first half of 2025 and 2024.

First half of 2025

	Gas parts (household and professional)	Hinges	Electronic components	Components Unallocated for induction cooking	revenues and costs	Trotal
Sales	86,300	46.930	12,390	118	(2,738)	143,000
Operating profit	8,356	5.937	1,258	(1,732)	(5,987)	7,832

First half of 2024

	Gas parts (household and professional)	Hinges	Electronic components	Components Unallocated tor induction cooking	revenues and costs	Total
Sales	84,754	43,932	14.194	231	1.566	144,677
Operating profit	8.850	4,139	2,838	(245)	(3,188)	12,394

38. RELATED PARTY TRANSACTIONS

Transactions between Sabaf S.p.A. and its consolidated subsidiaries have been eliminated from the consolidated financial statements and are not addressed in these notes. The table below illustrates the impact of all transactions between the Group and other related parties on the statement of financial position and income statement.

Impact of related party transactions or positions on items in the statement of financial position at 30 June 2025.

	Total financial statement item	Of which with related parties	Impact on the total
Trade payables	51.212		0.00%

Impact of related party transactions or positions on items in the statement of financial position at 30 June 2024.

	Total financial item	Of which with statement related parties	Impact on the total
Trade payables	51.034		0.00%

Impact of related party transactions or positions on income statement items at 30 June 2025

	l otal
	financial statement item	Of which with related parties	Impact on the total
Services	26,310		0.00%

Impact of related party transactions or positions on income statement items at 30 June 2024

I otal financial statement	Of which with	Impact on the total

	12	0.05%
	item 25,284	related parties

All transactions are regulated by specific contracts regulated at arm's length conditions,

39. SHARE-BASED PAYMENTS

2021 – 2023 Stock Grant Plan

Following the completion of the free share allocation plan approved by the shareholders in their meeting on 6 May 2021 for the period 2021-2023, during the first half of 2024, to reduce personnel costs by €299 thousand, the fair value of the rights granted to the beneficiaries for the period was recognised (note 28) and the related reserve recognised in the Group's shareholders' equity was released.

2024 - 2026 Stock Grant Plan

A plan for the free allocation of shares, approved by the Shareholders' Meeting of 8 May 2024, is in place. The related Regulations were approved by the Board of Directors on 18 June 2024. The main features of this Plan are summarised below.

Aim

The Plan aims to promote and pursue the involvement of the beneficiaries whose activities are considered relevant for the implementation of the content and the achievement of the objectives set out in the Business Plan, foster loyalty development and motivation of managers, by increasing their entrepreneurial approach as well as align the interests of management with those of the Company's shareholders more closely, with a view to promoting the sustainable success of the Company and the Group, achieve specific levels of growth and development, and the Group's sustainable objectives.

Purpose

The purpose of the Plan is the free allocation to the Beneficiaries of a maximum of 270,000 Options, each of which entitles them to receive free of charge, under the terms and conditions provided for by the Regulations of the relevant Plan, 1 Sabaf S.p.A. share.

The free allocation of Sabaf S.p.A. shares is conditional on the achievement, in whole or in part, with progressiveness, of the business targets related to the ROI and EBITDA and the social and environmental targets.

Beneficiaries

The Plan is intended for persons who hold or will hold key positions in the Company and/or its Subsidiaries, with reference to the implementation of the contents and the achievement of the objectives of the 2024 - 2026 Business Plan. A total of 263,000 Rights were allocated to the Beneficiaries already identified.

Deadline

The 2024 - 2026 Plan expires in 2027.

Accounting impacts and Fair Value measurement methods

In connection with this Plan, €389 thousand (note 28) was recognised under personnel costs during the period. An equity reserve of the same amount (note 13) was recognised as a balancing entry.

In line with the date on which the beneficiaries became aware of the assignment of the rights and terms of the plan, the grant date was set at 1 July 2024.

The main assumptions made at the beginning of the vesting period and the methods for determining the fair value at the end of the reporting period are illustrated below. The following economic and financial parameters were taken into account in determining the fair value per share at the start of the vesting period:

Share price on grant date adjusted for dividends	€16.60
Dividend yield	2.90%
Expected volatility per year	31.30%
Interest rate per year	3.10%

Based on the exercise right at the different dates established by the Plan Regulations and on the estimate of the expected probability of achieving the objectives for each reference period, the unitary fair value at 30 June 2025 was determined as follows:

Rights relating to objectives measured on ROI	Total value on ROI	9.80		3.43
	Rights on ROI	35%	Fair Value

Rights relating to objectives measured on EBITDA	6.33 Total value on EBITDA		Fair Value	2.85
	Rights on EBITDA	45%

Rights relating to ESG objectives training measured on personnel training Rights on "Personnel	Total value on "Personnel	14.02		0.70
	training"	5%	Fair Value

Rights relating to ESG objectives indicator' measured on safety indicator	Total value on "Satety	10.17	Fair Value	0.51
	Rights on "Safety indicator"	5%

8.86

Rights relating to ESG objectives	emissions"	13.73	Fair Value	1.37
measured on reduction of emissions.	Rights on "Reduction of emissions	10%

Fair value per share

40. SIGNIFICANT NON-RECURRING EVENTS AND TRANSACTIONS

Pursuant to Consob communication of 28 July 2006, the Group declares that no significant non-Pursuant to Colliob communication of 20 Consob communication itself were carried out during the first half of 2025.

41. SIGNIFICANT EVENTS AFTER THE END OF THE FIRST HALF-YEAR

There were no important events after the end of the first-half of 2025.

42. ATYPICAL AND/OR UNUSUAL TRANSACTIONS

Pursuant to Consob communication of 28 July 2006, the Group declares that no atypical and or Pursualit to Colliob communication of 20 as a sub communication itself were carried out during the first half of 2025.

43. COMMITMENTS

Guarantees issued

Guarantees Issued
The Sabaf Group issued sureties to guarantee consumer and mortgage loans granted by BPER I he Sabal Group issued surence to gaars.com
(formerly Ubi Banca) to Group employees for a total of €1,909 thousand (€2,135 thousand at 30 June 2024).

SCOPE OF CONSOLIDATION AT 30 June 2025

COMPANIES CONSOLIDATED USING THE FULL LINE-BY-LINE CONSOLIDATION METHOD

Company name	Registered offices	Share capital	Shareholders	0/0 ownership
Faringosi Hinges S.r.l.	Ospitaletto (BS)	EUR 90.000	Sabaf S.p.A.	100%
Sabaf do Brasil Ltda	Jundia) - São Paulo (Brazil)	BRL 53,348,061	Sabaf S.p.A.	100%
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirteki (Sabaf Turkey)	Manisa (Turkey)	TRY 1,306,029,421	Sabaf S.p.A.	100%
Sabaf Appliance Components I td.	Kunshan (China)	CNY 69,951,149	Sabaf S.p.A.	100%
Sabaf India Private Limited	Bangalore (India)	INR 311,666,338	Sabaf S.p.A.	100%
A.R.C. S.r.l.	Campodarsego (PD)	EUR 45,000	Sabaf S.p.A.	100%
Sabaf Mexico Appliance Components	San Louis Potosi (Mexico)	MXN 141,003,832	Sabaf S.p.A.	100%
C.M.I. Cerniere Meccaniche Industriali s.r.l.	Valsamoggia (BO)	EUR 1,000,000	Sabaf S.p.A.	100%
C.G.D. S.r.l.	Valsamoggia (BO)	EUR 26,000	C.M.I. S.r.L.	100%
P.G.A S.r.l.	Fabriano (AN)	EUR 100,000	Sabaf S.p.A.	100%
Sabaf America Inc.	Delaware (USA)	USD 4,000,000	Sabaf S.p.A.	100%
Mansfield Engineered Components LLC (MEC)	Mansfield (USA)	USD 2,823,248	Sabaf America	51%

Certification of the Half-Yearly Condensed Consolidated Financial Statements pursuant to Article 154-bis of Legislative Decree no. 58/98

The undersigned Pietro Iotti, CEO, and Gianluca Beschi, Financial reporting officer of SABAF S.p.A., confirm, also taking into account the provisions of Article 154-bis, paragraphs 3 and 4, of Legislative Decree No. 58 of 24 February 1998:

· the adequacy, in relation to the business characteristics and
the actual application

of the administrative and accounting procedures to draft the half-yearly condensed consolidated financial statements in the first half of 2025.

They also certify that:

· the half-yearly condensed consolidated financial statements:
- have been prepared in accordance with the international financial reporting standards endorsed by the EU in accordance with EC regulation 1606/2002 of the European Parliament and Council, of 19 July 2002;
- are consistent with accounting books and records;
- provide a true and fair view of the operating results, financial position ، and cash flows of the issuer and of the companies included in the consolidation;
· the interim report on operations includes a reliable analysis of the important events that occurred in the first six months of the year and their impact on the condensed consolidated interim financial statements, along with a description of the main risks and uncertainties for the six remaining months of the year. The interim report on operations also contains a reliable analysis of the information on significant transactions with related parties.

Ospitaletto, 4 September 2025

The Financial Reporting Officer Gianluca Beschi

Sabaf S.p.A.

Half-yearly condensed consolidated financial statements as of 30 June 2025

Review report on the half-yearly condensed consolidated financial statements

(Translation from the original Italian text)

EY S.p.A. Via Rodolfo Vantini, 38 25126 Brescia

Tel: +39 030 2896111 | +39 030 226326 ey.com

Review report on the half-yearly condensed consolidated financial statements (Translation from the original Italian text)

To the Shareholders of Sabaf S.p.A.

Introduction

We have reviewed the half-yearly condensed consolidated financial statements, comprising the consolidated statement of financial position, the consolidated income statement, the consolidated statement of comprehensive income, the statement of changes in consolidated shareholders' equity, the consolidated statement of cash flows and the related explanatory notes of Sabaf S.p.A. and its subsidiaries (the "Sabaf Group") as of 30 June 2025. The Directors of Sabaf S.p.A. are responsible for the preparation of the half-yearly condensed consolidated financial statements in conformity with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union. Our responsibility is to express a conclusion on these half-yearly condensed consolidated financial statements based on our review.

Scope of Review

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

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the half-yearly condensed consolidated financial statements of Sabaf Group as of 30 June 2025 are not prepared, in all material respects, in conformity with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union.

Brescia, 10 September 2025

EY S.p.A. Signed by: Marco Malaguti, Auditor

This report has been translated into the English language solely for the convenience of international readers

AI Terminal

Sabaf

4440_rns_2025-09-11_5a24c0b4-b4a0-4b58-bcb8-ad49050cf03d.pdf

HALF-YEARLY REPORT AT 30 JUNE 2025

TABLE OF CONTENTS

GROUP STRUCTURE AND CORPORATE BODIES Group structure

Parent company

SABAF S.p.A.

Subsidiaries and equity interest attributable to the Group

Corporate bodies

Board of Directors

Board of Statutory Auditors

Independent auditors

INTERIM REPORT ON OPERATIONS

INTERIM REPORT ON OPERATIONS

Introduction

The business

Economic performance

First half of 2025

Second quarter of 2025

Financial position, cash flows and financial debt at 30 June 2025

Intra-group and related party transactions

Risk factors related to the segment in which the Group operates and main risks

Risks related to the conflicts in Ukraine and in the Middle East

Tariff barriers

Climate change and energy transition

Risks of external context

Strategic risks

Operational risks

Legal and compliance risks

Significant events after the end of the half-year

Outlook for the current year

Annexes to the Interim Report on Operations

Normalised turnover by geographical area

Normalised turnover by product line

Reconciliation of the consolidated income statement at 30 June 2025

Reconciliation of the consolidated income statement at 30 June 2024

Reconciliation of the Consolidated Income Statement for the Second Quarter 2025*

Reconciliation of the Consolidated Income Statement for the Second Quarter 2024*

Consolidated statement of financial position

Consolidated Income Statement

HALF-YEARLY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2025

Consolidated statement of financial position

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of cash flows

EXPLANATORY NOTES

Basis of presentation and accounting policies used

New standards

Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates".

Financial statements

Scope of consolidation

Consolidation criteria

Conversion into euro of foreign-currency income statements and statements of financial position

Segment reporting

Use of estimates

Hyperinflation - Turkey: application of IAS 29

Position

Comments on the main items of the statement of financial position

1. PROPERTY, PLANT AND EQUIPMENT

2. INVESTMENT PROPERTY

3. INTANGIBLE ASSETS

Goodwill

Development costs

Other intangible assets

4. EQUITY INVESTMENTS

5. NON-CURRENT RECEIVABLES

6. INVENTORIES

7. TRADE RECEIVABLES

8. TAX RECEIVABLES

9. OTHER CURRENT RECEIVABLES

10. CURRENT FINANCIAL ASSETS

11. CASH AND CASH EQUIVALENTS

12. SHARE CAPITAL

13. TREASURY SHARES AND OTHER RESERVES

Stock grant reserve

Cash Flow Hedge reserve

14. LOANS

15. OTHER FINANCIAL LIABILITIES

16. POST-EMPLOYMENT BENEFITS AND RETIREMENT PROVISIONS