This document has been translated into English for the convenience of readers outside Italy. The original Italian document should be considered the authoritative version.

Date of issue: 11 September 2025 This report is available online in the "Investors" section of the website www.eurotech.com

EUROTECH S.p.A. Registered offices: Via Fratelli Solari 3/A, Amaro (Udine), Italy Share capital: €9,657,277.25 fully paid in Tax code and Udine Company Register no.: 01791330309

Corporate Bodies 5
Information for shareholders 6
Management report 7
Introduction 7
Performance highlights 7
The Eurotech Group 9
Statement of financial position16
Investments and research & development 19
Competitive scenario, outlook and future growth strategy 19
Treasury shares of the Parent Company owned by the Parent Company or subsidiaries 19
Disclosure on sovereign exposure 20
Regulatory simplification process based on Consob resolution no. 18079/201220
Corporate governance information 20
Unusual and/or atypical transactions 20
Other information 20
Events after the reporting period21
Condensed consolidated half-year financial statements at 30 June 2025 22
Consolidated statement of financial position 22
Consolidated income statement23
Consolidated statement of comprehensive income 23
Consolidated statement of changes in equity 24
Consolidated cash flow statement 25
Explanatory notes to the financial statements 26
A – Corporate information26
B – Reporting policies and IFRS compliance26
C – Scope of consolidation 28
D – Segment reporting 29
E – Breakdown of main items of the statement of financial position30
1 – Intangible assets 31
2 – Property, plant and equipment34
3 – Equity investments in affiliates and other companies 35
4 - Inventories 37
5 – Trade receivables 38
6 – Tax receivables and payables38
7 – Other current assets39
8 – Other current financial assets39
9 – Cash and cash equivalents 40
10 – Net financial position40
11 – Equity 41
12 – Basic and diluted earnings (losses) per share42
13 – Financial liabilities 43
14 – Employee benefits 43
15 – Provisions for risks and charges44
16 – Trade payables 45
17 – Other current liabilities 45
18 — Payables for business combinations 46
F – Breakdown of the main income statement items 47
19 – Costs of raw and auxiliary materials and consumables47
20 – Other operating costs net of cost adjustments 47
21 – Service costs 48
22 – Payroll costs 48
23 – Cost adjustments for internally generated non-current assets49
24 – Other income49

25 – Depreciation, amortisation and write-downs 49
26 – Financial income and charges 50
27 – Income tax for the period50
28 – Statement of comprehensive income51
G – Other information 52
29 – Related-party transactions52
30 – Financial risk management: objectives and criteria 52
31 – Derivatives 55
32 – Share-based payments 55
33 – Non-recurring costs and revenues59
34 – Events after the reporting period59
35 – Seasonality of business activities 60
Certification of the Condensed Consolidated Half-Year Financial Statements 61
Independent Auditor's Report 63

Corporate Bodies

Board of Directors
Chairman	Luca di Giacomo
Deputy Chairman	Aldo Fumagalli 1 3
Chief Executive Officer	Massimo Milan
Director	Laura Amadesi 1 2 3 4 5
Director	Davide Albino Carando 1
Director	Michela Costa 1 2 3 4 5
Director	Tiziana Olivieri 1 2 4 5

The current Board of Directors was appointed by the Ordinary Shareholders' Meeting on 27 April 2023, supplemented by the Ordinary Shareholders' Meeting on 15 October 2024, with regard to the appointment of Director Davide Albino Carando, and on 28 April 2025, with regard to the appointment of Director Tiziana Olivieri. Subsequently, the Board of Directors meeting of 5 June 2025, co-opted Director Massimo Milan, appointed concurrently as Chief Executive Officer, and the Board of Directors meeting of 23 June 2025, co-opted Director Laura Amadesi. In addition, the Shareholders' Meeting of 28 April 2025, resolved to reduce the number of directors from nine to seven.

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Board of Statutory Auditors
Chairman	Fabio Monti
Statutory Auditor	Laura Briganti
Statutory Auditor	Daniela Savi
Alternate Auditor	Clara Carbone
Alternate Auditor	Daniele Englaro

The Board of Statutory Auditors currently in office was appointed by shareholders at the Annual General Meeting of 27 April 2023, and will remain in office until approval of the 2025 financial statements.

Independent Auditor

Ernst & Young

The independent auditor was appointed for the period 2023-2031 by shareholders at the Annual General Meeting of 27 April 2023.

Corporate name and registered offices of the Parent Company
Eurotech S.p.A.
Via Fratelli Solari 3/A
33020 Amaro (Udine), Italy
Udine Company
Register No. 01791330309

¹ Non-executive Directors.

² Independent directors pursuant to the Corporate Governance Code drawn up by the Corporate Governance Committee for Listed Companies.

³ Member of the Control and Risk Committee

⁴ Member of the Related Party Transactions Committee

⁵ Member of the Remuneration and Appointments Committee

Information for shareholders

The ordinary shares of Eurotech S.p.A., the Parent Company of the Eurotech Group, have been listed since 30 November 2005 in the Euronext Star Milan segment of the Euronext Milan market organised and managed by Borsa Italiana S.p.A.

Share capital of Eurotech S.p.A. at 30 June 2025

Share capital	€9,657,277.25
Number of ordinary shares (without nominal unit value specified)	38,629,109
Number of savings shares	-
Number of Eurotech S.p.A. ordinary treasury shares	240,606
Stock market capitalisation (based on the average share price in June 2025)	€40 million
Stock market capitalisation (based on the share price on 30 June 2025)	€40 million

Performance of Eurotech S.p.A. shares

Relative performance EUROTECH S.p.A. 01.01.2025 – 30.06.2025

Management report

Introduction

The consolidated financial statements of Eurotech Group were prepared in accordance with IFRS international accounting standards issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to Art. 6 of EC Regulation 1606/2002 of the European Parliament and European Council of 19 July 2002.

These condensed consolidated half-year financial statements at 30 June 2025 were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting", Art. 154-ter of the Consolidated Law on Finance as well as the relevant Consob provisions. This condensed consolidated half-year financial statements are subject to a limited audit according to the criteria recommended by Consob. The condensed consolidated half-year financial statements do not contain all the information and notes required for drafting the consolidated annual financial statements and therefore these financial statements must be read together with the consolidated annual financial statements at 31 December 2024.

Unless otherwise stated, data are expressed in thousands of euro.

Performance highlights

Financial data

	H1 2025	%	H1 2024	%	% change
(€'000)
OPERATING RESULTS

SALES REVENUES	21.483	100,0%	29.261	100,0%	-26,6%
GROSS PROFIT MARGIN	10.588	49,3%	14.540	49,7%	-27,2%

EBITDA ADJ	(4.047)	-18,8%	(3.081)	-10,5%	-31,4%
Non recurring costs	(1.236)	-5,8%	(409)	-1,4%	-202,2%
EBITDA	(5.283)	-24,6%	(3.490)	-11,9%	-51,4%
EBIT	(7.718)	-35,9%	(5.838)	-20,0%	-32,2%
PROFIT (LOSS) BEFORE TAXES	(8.219)	-38,3%	(5.573)	-19,0%	-47,5%
GROUP NET PROFIT (LOSS) FOR THE PERIOD	(7.564)	-35,2%	(5.511)	-18,8%	-37,3%

Statement of financial position data

€'000 HIGHLIGHTS	at June 30, 2025	at December 31, 2024	at June 30, 2024

Non-current assets	71.419	73.075	95.423
- of which net intangible assets	60.886	62.425	83.101
- of which net tangible assets	7.759	8.367	6.658
Current assets	34.935	38.292	45.361
TOTAL ASSETS	106.354	111.367	140.784
Group shareholders' equity	56.046	60.664	86.121
Non-current liabilities	22.471	24.246	16.505
Current liabilities	27.837	26.457	38.158
TOTAL LIABILITIES AND EQUITY	106.354	111.367	140.784

€'000	at June 30, 2025	at December 31, 2024	at June 30, 2024

(NET FINANCIAL POSITION) NET DEBT	18.696	20.400	23.289
NET WORKING CAPITAL	9.516	14.684	20.315
NET INVESTED CAPITAL *	74.742	81.064	109.410
CASH FLOW DATA

Cash flow generated (used) in operations	191	4.277	(366)
Cash flow generated (used) in investment activities	(1.616)	(4.959)	(2.055)

Cash flow generated (absorbed) by financial assets	2.492	(4.182)	(2.818)
Net foreign exchange difference	(823)	(394)	(556)
TOTAL CASH FLOW	244	(5.258)	(5.795)

(*) Non-current, non-financial assets, inclusive of equity investments in associates and other companies and net working capital, minus noncurrent, non-financial liabilities.

Number of employees

	at June 30,	at December 31,	at June 30,
	2025	2024	2024
EMPLOYEES	321	361	378

Revenues by geographic business area

		North America		Europe		Asia		Correction, reversal and elimination		Total
	H1 2025	H1 2024	H1 2025	H1 2024	H1 2025	H1 2024	H1 2025	H1 2024	H1 2025	H1 2024
Third party Sales	1.353	5.201	12.232	17.000	7.898	7.060	0	0	21.483	29.261
Infra-sector Sales	1	72	993	3.171	0	12	( 994)	( 3.255)	0	0
Total Sales revenues	1.354	5.273	13.225	20.171	7.898	7.072	( 994)	( 3.255)	21.483	29.261

Summary of the results

The Eurotech Group

Eurotech is a global company with a strong international focus, which generates sales on three continents. It is a Group that has operating offices in Europe, North America and Japan, led and coordinated by its headquarters in Italy.

Eurotech has a long tradition spanning more than 30 years in the design and manufacture of embedded computers for special applications, where the ability of computers to withstand hostile environments and the need for continuous, uninterrupted operation are the determining factors. This is a high-value, low-volume niche market that has enabled the company to maintain a gross margin above the industry average over the years. For the past four years, Eurotech has been accelerating its move towards Edge Computing and Industrial IoT, with significant investments in its open-source software integrated with edge hardware, and in the differentiating

OT cybersecurity certifications that characterize its portfolio. As a result, the historic embedded computer business is being run on a "run for cash" basis.

The factors that characterize Eurotech in the Industrial IoT landscape are as follows:

Eurotech's technology resolves the conflict between Operational Technology (OT) and Information Technology (IT) at the Edge, thanks to integrated solutions that combine hardware and software; this conflict is unanimously recognized as the number one obstacle to the implementation of IoT projects by companies;
Plug&Play connectivity to field assets, which speeds up implementation times and reduces costs;
Thanks to its relationships with big names in IT such as Microsoft, Amazon, and Red Hat, Eurotech is able to provide certified connectivity to all major cloud platforms, reducing the time and risks of integration in a typical IoT project using these platforms to almost zero;

Eurotech's connection and integration technology has been designed and implemented using the best cybersecurity solutions and is certified according to the latest international standards (IEC 62443-4-1 and IEC 62443-4-2).

Today, the Group's offering is modular, with different levels of hardware and software integration, and is structured as follows:

Embedded PCs in the form of boards and subsystems, which represent Eurotech's historical offering and are purely hardware products with only the operating system integrated;
Industrial PCs (IPCs), which represent the main offering of InoNet Computer GmbH, the German subsidiary acquired in September 2022;
Edge gateways, i.e., devices that enable communication between assets operating in the field and data platforms in the cloud, both public and private;
Edge computers, i.e., rugged computing units located in the field, close to the assets and dedicated to the local processing of the data they generate;
Edge AI appliances, i.e., systems with integrated high-performance hardware and software for secure and remotely controllable processing of Artificial Intelligence algorithms directly in the field, eliminating unnecessary and costly data transfers to centralized servers;
Software for integration between Operational Technology and Information Technology: the "Everyware Software Framework" (ESF) edge framework on the OT side and the "Everyware Cloud" (EC) integration platform on the IT side.

The sectors in which the Group has historically generated most of its revenue are industry and transportation, followed by medical. More recently, the new offering of integrated hardware and software for industrial IoT applications has enabled the Group to enter new sectors, such as energy. From a strategic point of view, the Group's current choice is to focus on four vertical markets that combine greater size and higher growth rates in the coming years: industrial automation, transportation & off-road, medical, and renewable energy & energygas-water networks.

Company name	Business activity	Share capital	Group share
Parent company Eurotech S.p.A.	It operates in the Edge Computer and Industrial IoT	€9,657,277.25
	market, with primary focus on the Italian and EMEA markets. In terms of organisation, it performs the role of industrial holding coordinating all subsidiaries of the Eurotech Group.
	Subsidiaries and consolidated companies on a line-by-line basis
E-Tech USA Inc.	Holding company that controls 100% of Eurotech Inc.	\$8,000,000	100.00%
EthLab S.r.l.	Service company for research and development on behalf of the Group	€115,000	100.00%

At 30 June 2025, the Eurotech Group consisted of the following companies:

Eurotech France S.A.S.	It operates in the French market, focusing on the IoT market in particular	€795,522	100.00%
Eurotech Inc.	It operates in the US market with a focus on the industrial, medical and transport sectors	\$26,500,000	100.00%
Eurotech Ltd.	It operates mainly in the United Kingdom and in Northern Europe	£33,333	100.00%
I.P.S. Sistemi Programmabili S.r.l. in liquidation	Operates in the Italian market under the IPS brand	€51,480	100.00%
InoNet Computer GmbH	It operates under the InoNet brand in the DATCH market, providing highly reliable, powerful and robust industrial PCs	€250,000	100.00%
Advanet Inc.	It operates in the Japanese market with a focus on the industrial, medical and transport sectors	¥72,440,000 90.00% (1)

(1) For purposes of consolidation, it is considered as 100% owned, since Advanet Inc. holds the remaining 10% in the form of treasury shares.

Operating performance

		H1 2025	%	H1 2024	%	% change
(€'000)
OPERATING RESULTS

SALES REVENUES		21.483	100,0%	29.261	100,0%	-26,6%
GROSS PROFIT MARGIN	(*)	10.588	49,3%	14.540	49,7%	-27,2%
EBITDA ADJ	(****)	(4.047)	-18,8%	(3.081)	-10,5%	-31,4%
Non recurring costs		(1.236)	-5,8%	(409)	-1,4%	-202,2%
EBITDA	(**)	(5.283)	-24,6%	(3.490)	-11,9%	-51,4%
EBIT	(***)	(7.718)	-35,9%	(5.838)	-20,0%	-32,2%
PROFIT (LOSS) BEFORE TAXES		(8.219)	-38,3%	(5.573)	-19,0%	-47,5%
GROUP NET PROFIT (LOSS) FOR THE PERIOD		(7.564)	-35,2%	(5.511)	-18,8%	-37,3%

(*) Gross profit margin is the difference between revenues from sales of goods and services and use of raw materials.

(**) EBITDA, an intermediate figure, is earnings before amortisation, depreciation and impairment of non-current assets, financial income and expenses, the valuations of affiliates at equity and of income taxes for the period. This is a measure used by the Group to monitor and assess operating performance. Since the composition of EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.
(***) Operating profit (EBIT) is gross of investments in associates according to the equity method, of financial income and charges, and income tax for the period.
(****) The ADJ. EBITDA incorporates the EBITDA structure just defined above and isolates the cost and/or revenue components considered non-recurring by management. This is a measure used by the Group to monitor and assess its operating performance, net of any non-recurring costs or revenues that therefore do not occur frequently in the ordinary course of business. Since the composition of ADJ. EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.

Sales revenues for the first half of the year remain strongly affected by the factors already highlighted in the first quarter, with particular reference to the low order intake in the second half of 2024, due in particular to the crisis in the industrial sector in Europe, with a collapse in industrial production in Germany. Despite this, order intake for 2025 is encouraging and the backlog for the second half of the year allows us to estimate that the second six months of the year will exceed the turnover recorded in the first six months.

Consolidated revenues for the first six months of 2025 amounted to €21.48 million, compared to €29.26 million in the first half of 2024. The decrease in turnover from one period to the next was 26.6%, an improvement compared to the 31.0% decrease recorded in the first quarter. At constant exchange rates, the change is essentially identical: -26.8%.

Revenues in the Edge AIoT segment remain the most significant, accounting for 59.2% of the total compared to 56.8% in the first six months of 2024; the traditional embedded business continued to decline, particularly due to the reduction in the United States, which was only partially offset by an increase in revenues in Japan.

Looking at the breakdown of revenues by geographic area of the Group's activities, the European area is the most significant with 56.9% of the total figure (H1 2024: 58.1%); the Japanese area is in second place with a contribution of 36.8% (H1 2024: 24.1%); lastly, the US area accounts for the remaining 6.3% (H1 2024: 17.8%).

The gross profit margin for the period amounted to €10.59 million, with an incidence on revenues of 49.3%. In percentage terms, this compares with 50.7% in the twelve months of 2024 and with a value of 49.7% in the first half of 2024.

The margin remained stable compared to the first half of 2024 and also compared to the first quarter of 2025, when it was 49.6%, due to a substantially consistent mix of products sold, combined with constant control of the costs of purchased components.

Operating costs in the first six months of the fiscal year, before adjustments made for internal increases in development activities of €1.52 million (€1.80 million in the first half of 2024), amounted to €17.69 million, compared to €20.11 million in the first half of 2024. Net of non-recurring costs of €1.24 million (€0.4 in the first half of 2024), total operating costs for the first half of the year amounted to €16.45 million. The reduction from the first six months of 2023 is thus €1.27 million, which becomes €1.68 million net of non-recurring costs. The reduction in operating costs was therefore considerable compared to the first six months of 2024: €2.42 million (-12%), which becomes €3.25 million (-16.5%) net of non-recurring costs.

Non-recurring costs, reported in the income statement for the first half of 2025, relate to the Group's reorganization activities and concern three aspects in particular: one-off personnel costs related to workforce reduction, certain service costs incurred to facilitate and speed up this reorganization, and the portion relating to the severance pay granted to the Chief Executive Officer upon his departure in June 2025. In the first half of 2024, costs mainly related to personnel costs for workforce reorganization and, in part, to certain related service costs.

At historical exchange rates, there is a decrease in operating costs of 12.0%, which would be 12.2% at constant exchange rates. The reduction in operating costs has had its greatest impact in the United States, where a major reorganization took place between 2024 and 2025, affecting both staff and some of the services used locally. Other legal entities have also optimized the costs of their local operating structures and, where permitted, social safety nets have been used and agreements have been reached on salary reductions. As of June 30, 2025, there were 321 employees (361 as of December 31, 2024, and 378 as of June 30, 2024), with an average for the period of 347 (386 in the first half of 2024). Personnel costs, net of non-recurring costs, fell from €11.87 million (€11.91 million at constant exchange rates) to €10.33 million, a reduction of 13.0%. Including non-recurring costs, the change is 9.6%.

Gross operating costs as a percentage of revenues, due to the low level of revenues in the first half of the year, amounted to 81.9% (76.6% net of non-recurring costs) compared to 68.7% (67.3% net of non-recurring costs) in the first half of 2024.

Adjusted EBITDA i.e., net of non-recurring costs, amounted to €4.05 million (-35.5% of revenues) in the first six months of 2025, compared to €3.08 million (-10.5% of revenues) in the first six months of 2024. EBITDA for the first six months of 2025, considering non-recurring income statement items, amounted to €-5.28 million (-24.6% of revenues) compared to €-3.49 million (-11.9% of revenues) for the first six months of 2024.

In the first half, EBIT, i.e. the operating result, was €-7.72 million (-35.9% of revenues) compared to €-5.84 million in the first six months of 2024. In addition to the above, this performance reflects also the depreciation and the amortisation recognised in the income statement in the first six months of 2025.

The recognition of amortisation, depreciation and impairment of intangible assets and of property, plant and equipment had a €2.43 million impact compared to €2.35 million in the same period of 2024.

In the first six months of 2024, financial management recorded a loss of €0.50 million, compared with a gain of €0.27 million in the first half of 2024. The value for 2025 was affected by the different currency trend, which resulted in a negative net exchange rate effect of €0.06 million compared to a value, again positive, of €0.43 million in 2024 and by the recognition of financial income and interest income of €0.03 million referring for €0.40 million to the adjustment of the value of the liability recorded in the financial statements in 2022 as an earn-out for the acquisition of InoNet Computer GmbH.. Financial management relating to interest accounted for €0.41 million, a lower value compared to the first half of 2024 (€0.56 million) mainly due to the interest rates decrease on loans payable contracted at a floating rate and not subject to hedging policies.

Pre-tax loss was €8.22 million compared to a still negative result of €5.57 million in the first six months of 2024.

Estimated taxes, calculated based on the rates established for the year, were a positive €0.66 million and mainly relate to the recognition of deferred tax assets on the results for the period of the German (€0.4 million) and Japanese (€0.16 million) companies, whose business plans provide for recoverability by the end of the year. No deferred tax assets were recognized on the results for the period of the Italian, American, and British companies, pending the definition of the Group's new business plan, which will support the identification of future taxable income..

The net result for the Group was €-7.56 million (it was negative for €5.51 million in the first six months of 2024) and its ratio to revenue was -35.2%.

Breakdown by geographic area

As indicated in the explanatory notes to the consolidated financial statements for the year ended December 31, 2024, the Group oversees a single line of business known as "Modules and Platforms", which comprises a) embedded computing modules and systems for industrial, transport, medical and energy uses; b) Edge computers featuring low power consumption and high performances, to be used both in Internet of Things (IoT) solutions and to create applications where Artificial Intelligence (AI) algorithms are used; c) software frameworks and platforms for IoT applications.

The segment reporting is presented based on the geographic area in which the various Group companies operate and are currently monitored. This is defined by the location of goods and operations carried out by individual Group companies. The geographic areas identified within the Group are: North America, Europe and Asia.

The development in revenues, including intersectoral revenues, and margins by individual geographic area and the relative changes in the periods under review are set out below.

(€' 000)	North America		Europe		Asia		Correction, reversal and elimination			Total
	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change
Third party Sales	1.353	5.201		12.232	17.000		7.898	7.060		0	0		21.483	29.261
Infra-sector Sales	1	72		993	3.171		0	12		( 994)	( 3.255)		0	0
Total Sales revenues	1.354		5.273 -74,3%	13.225		20.171 -34,4%	7.898		7.072 11,7%	( 994)		( 3.255) -69,5%	21.483		29.261 -26,6%
Gross profit	173		2.119 -91,8%	2.727		9.471 -71,2%	1.282		3.794 -66,2%	6.406		( 844) -859,0%	10.588	14.540	-27,2%
Gross profit margin - %	12,8%	40,2%		20,6%	47,0%		16,2%	53,6%					49,3%	49,7%
EBITDA													( 5.283)		( 3.490) -251,4%
EBITDA margin - %													-24,6%	-11,9%
EBIT													( 7.718)		( 5.838) -232,2%
EBIT margin - %													-35,9%	-20,0%

Revenues in the North America business area amounted to €1.35 million in the first half of 2025, down 74.3% from €5.27 million in the first half of 2024. . This reduction is the result of a combination of two factors: a different distribution of turnover across the various quarters in 2025 compared to 2024 and a reduction in oneoff sales of end-of-life products recorded in the first six months of last year.

The European business area showed a 34.4% decline in the half-year comparison, from €20.17 million in the first half of 2024 to €13.22 million in the first half of 2025. This performance is a consequence of the negative trend in orders, particularly in the second half of 2024. The order backlog suggests a partial recovery of the gap in the second half of the year.

As in previous years, the European area has the highest turnover in the Edge AIoT sector, which recorded an increase of approximately 7% in percentage terms, thus accounting for almost all of the turnover generated by this area.

The Asia business area showed an increase of 11.7%, from €7.07 million to €7.90 million, mainly due to a different distribution of revenues across the various quarters of the year compared to 2024.

The breakdown of revenues by type, which also in application of IFRS 15 represents the disclosure of disaggregated revenues, is as follows:

	FY 2025	%	FY 2024	%	% change
(€' 000)
SALES BY TYPE
Industrial revenues	17.622	82,0%	25.242	86,3%	-30,2%
Services revenues	3.861	18,0%	4.019	13,7%	-3,9%
TOTALE SALES AND SERVICE REVENUES	21.483	100,0%	29.261	100,0%	-26,6%

Based on the type of revenue, industrial revenue suffered the most significant decline. The reduction in service revenues was significantly more modest, falling by 3.9% year-on-year, attributable to lower customization related to engineering services for embedded projects for specific customers, while recurring revenues from software and professional services provided in the initial phases of new IoT projects remained constant.

The regional breakdown of revenues by customer location is shown below:

(€' 000) BREAKDOWN BY GEOGRAPHIC AREA	H1 2025	%	H1 2024	%	% change
European Union	10.526	49,0%	15.056	51,5%	-30,1%
United States	1.304	6,1%	4.867	16,6%	-73,2%
Japan	7.882	36,7%	7.026	24,0%	12,2%
Other	1.771	8,2%	2.312	7,9%	-23,4%
TOTAL SALES AND SERVICE REVENUES	21.483	100,0%	29.261	100,0%	-26,6%

Based on the breakdown of revenues by geographical area of the customer, it should be noted that revenues in the territory of the European Union remain predominant despite a reduction of 30.1%, with an incidence of 49.0% on total revenues in the first half year of 2025.

Despite a decrease of 12.2% in revenues, the Japan area is the second most significant area of the Group with an incidence of 36.7% (24.0% in the first half of 2024).

Finally, following the reduction in turnover in the two periods compared, the US area accounted for 6.1% (16.6% in the first half of 2024).

The remaining geographical areas accounted for 8.2% of total turnover in the first half of 2025 (7.9% in the first half of 2024).

Statement of financial position

Non-current assets

(€'000)	Notes	at June 30, 2025	at December 31, 2024	Changes
Intangible assets	1	60.886	62.425	( 1.539)
Property, Plant and equipment	2	7.759	8.367	( 608)
Investments in affiliate companies	3	4	4	-
Investments in other companies	3	138	152	( 14)
Deferred tax assets	27	2.177	1.647	530
Other non-current assets		455	480	( 25)
Total non-current assets		71.419	73.075	( 1.656)

The Non-current assets item decreased from €73.07 million in the financial year 2024 to €71.42 million in the first half of 2025. The difference mainly reflects changes in intangible assets and property, plant and equipment arising from the different conversion ratio for financial statements in foreign currency, depreciation for the period as well as the investments made.

The Group's main investments are made in the following macro items:

(€'000)	at June 30, 2025	at June 30, 2024	Changes
Intangible assets	1.617	1.793	( 176)
Property, plant and equipment	474	445	29
Investments	-	-	-
TOTAL MAIN INVESTMENTS	2.091	2.238	( 147)

Current assets

(€'000)	at June 30, 2025	at December 31, 2024	Changes
Inventories	16.515	17.141	( 626)
Trade receivables	9.501	12.405	( 2.904)
Income tax receivables	693	934	( 241)
Other current assets	1.789	1.498	291
Other current financial assets	12	115	( 103)
Derivative instruments	11	29	( 18)
Cash & cash equivalents	6.414	6.170	244
Total current assets	34.935	38.292	( 3.357)

Current assets decreased compared to 31 December 2024: from €38.29 million at 31 December 2024 to €34.93 million at 30 June 2025.

The most significant items that have undergone changes are inventories and trade receivables, both of which have decreased.

The reduction in inventories is mainly due to write-offs made to adjust the value of stocks to their estimated realizable value.

The reduction in receivables is due to the collection of trade receivables generated in the fourth quarter of 2024 and to the volume of uncollected turnover generated in the half-year, which was lower than that generated in the first half of 2024.

Net working capital

Net working capital shows the following evolution in the period:

(€'000)	at June 30, 2025 (b)	at December 31, 2024 (a)	at June 30, 2024	Changes (b-a)
Inventories	16.515	17.141	21.798	(626)
Trade receivables	9.501	12.405	14.377	(2.904)
Income tax receivables	693	934	1.454	(241)
Other current assets	1.789	1.498	1.918	291
Current assets	28.498	31.978	39.547	(3.480)
Trade payables	(10.297)	(9.040)	(11.733)	(1.257)
Trade payables from affiliates companies	(349)	(399)	(348)	50
Income tax liabilities	(733)	(953)	(837)	220
Other current liabilities	(7.603)	(6.902)	(6.314)	(701)
Current liabilities	(18.982)	(17.294)	(19.232)	(1.688)
Net working capital	9.516	14.684	20.315	(5.168)

The reduction in working capital compared to 31 December 2024 is mainly due to a higher reduction in current assets than in current liabilities. In particular, against a reduction in trade receivables of €2.90 million and inventories of €0.63 million, trade payables to thirds and to affiliated companies increased by a total of €1.21 million.

Net working capital as a rolling ratio of revenues in the last twelve months was 18.5%, compared to 24.8% at 31 December 2024 and 27.0% at 30 June 2024. The twelve-month figure is in line with the threshold value of 20%, which is the target set by management.

Net financial position

The following table shows the composition of the net financial position at the end of each period indicated, represented as defined by Consob notice no. 5/21 of 29 April 2021, which refers to the Guidelines of the European Securities and Markets Authority (ESMA), issued on 15 July 2020 and effective from 5 May 2021.

(€'000)		at June 30, 2025	at December 31, 2024	at June 30, 2024
Cash	A	6.414	6.170	5.633
Cash equivalents	B	-	-	-
Other current financial assets	C	23	144	181
Cash equivalent	D=A+B+C	6.437	6.314	5.814
Current financial debt	E	4.261	6.808	8.249
Current portion of non-current financial debt	F	4.479	2.240	10.336
Other current financial liabilities	G	115	115	341
Short-term financial position	H=E+F+G	8.855	9.163	18.926
Short-term net financial position	I=H-D	2.418	2.849	13.112
Non current financial debt	J	16.278	17.551	10.177
Debt instrument	K	-	-	-
Trade payables and other non-current payables	L	-	-	-
Medium-/long-term net financial position	M=J+K+L	16.278	17.551	10.177
(NET FINANCIAL POSITION) NET DEBT ESMA	N=I+M	18.696	20.400	23.289

The consolidated net financial position as at 30 June 2025 amounted to a net financial debt of €18.70 million, an improvement of €1.70 million compared to a net financial debt of €20.40 million as at 31 December 2024. With reference to liquidity, which amounted to €6.41 million, during the period under review, cash flow from operating activities amounted to €0.19 million and cash flow from financing activities amounted to €2.49 million, while €1.62 million was used for investments.

For the sake of clarity, cash generated from financing activities is the result of capital contributions of €5 million by the relative majority shareholder Emera Srl, from new loans of €2.07 million net of repayments of short- and medium-term loans, which amounted to €4.06 million.

Cash flows

(€'000)		at June 30, 2025	at June 30, 2024
Cash flow generated (used) in operations	A	191	( 366)
Cash flow generated (used) in investment activities	B	( 1.616)	( 2.055)
Cash flow generated (absorbed) by financial assets	C	2.492	( 2.818)
Net foreign exchange difference	D	( 823)	( 556)
Increases (decreases) in cash & cash equivalents	E=A+B+C+D	244	( 5.795)
Opening amount in cash & cash equivalents		6.170	11.428
Cash & cash equivalents at end of period		6.414	5.633

Investments and research & development

At 30 June 2025, technical investments (property, plant and equipment) in buildings, plants, equipment and instruments amounted to €182 thousand, while investments in other assets amounted to €44 thousand In addition, during the first half of the year, the Group purchased software licenses related to production for €39 thousand. Furthermore, contracts with usage rights were renewed for €248 thousand.

During the period, the Group invested in industrial research and development and technological innovation for new products. Research resulted in the development of new products/applications in the field of highly integrated, low-consumption computers and systems, IoT framework and integration platform, Edge computers, intelligent sensors and embedded supercomputers. Moreover, technological innovation enabled the Company to achieve improvements in product quality in order to reduce production costs, with a resulting increase in business competitiveness. In the period, development activities were capitalised for an amount of €1.58 million (€1.80 million in the first half of 2024).

Competitive scenario, outlook and future growth strategy

The order backlog at the end of the first half of 2025 does not allow for long-term visibility. However, the existing backlog and opportunities identified with customers suggest that the second half of the year will see much higher revenues than the first, with growth in both the legacy business and the Edge AIoT business. Although to a lesser extent than in the past, shortages of certain niche electronic components remain and are expected to continue at least until the end of the year; despite this, overall availability is good. Attention to developments in the global scenario remains high: for geopolitical issues involving Europe, with the war in Ukraine still ongoing; for tariffs applied by the United States to other countries where the group operates or, indirectly, where our customers operate; and for the impact that the continuing conflict in the Middle East may have on the supply chains of our customers and suppliers.

On the organizational side, there is a particular focus on reducing operating costs in line with revenue trends: over the next six months, the effects of the rationalization measures completed in the various geographical areas will continue to be felt, with further cost reductions in 2025 and an effect also in 2026.

More generally, the strategic direction for the Group's growth continues to be based on the following points:

focus on markets that combine a larger size and a higher growth rate (CAGR);
addressing applications in difficult environments or with high reliability requirements, which require more solutions using rugged devices;
focus on vertical markets and sectors in which IT-OT integration is most valued;
create growth both organically and through external lines, i.e. through the acquisition of new entities;
leverage both global and local accelerating factors and forces of change:
- o Repatriation: switch AI processing from the cloud to the Edge
- o New & smart energy
- o Automation: increase process automation to improve efficiency

Treasury shares of the Parent Company owned by the Parent Company or subsidiaries

The Parent Company Eurotech S.p.A. held 240,606 treasury shares at the end of the reporting period. During the first half of 2025, no treasury shares of the Parent Company were purchased or sold on the market, nor were any shares assigned to employees under the existing performance plans.

Disclosure on sovereign exposure

Pursuant to Consob Communication no. DEM/11070007 of 5 August 2011 (a continuation of ESMA document 2011/266 of 28 July 2011) relating to disclosure in financial reports of the exposure of listed companies to sovereign debt, note that the Group does not hold sovereign debt securities.

Regulatory simplification process based on Consob resolution no. 18079/2012

Pursuant to Article 3 of Consob Resolution no. 18079 of 20 January 2012, Eurotech adopted the simplification (opt-out regime) procedure set out in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Regulation adopted by Consob with Resolution no. 11971 of 14 May 1999 as amended and supplemented. Therefore, it opts to derogate from the requirement to publish the information documents set out in Attachment 3B of this Consob Regulation for significant transactions such as mergers, spin-offs, capital increases via contributions in kind, acquisitions and sales.

Corporate governance information

The "Report on Corporate Governance and Ownership Structure" (hereinafter "Report") envisaged by Art. 123 bis of the Consolidated Law on Finance was prepared with reference to the year ended 31 December 2023 as an independent document, approved by the Board of Directors on 19 March 2024 and published on the Company's website at www.eurotech.com under the "Investors" section along with the financial statements.

The Report provides a general and complete overview of the corporate governance system adopted by Eurotech S.p.A. The Company's profile and the principles to which it refers are described. It contains information on the ownership structure and compliance with the Corporate Governance Code, including the principal governance policies applied and the main features of the internal control and risk management system. Furthermore, it includes a description of the functioning and composition of administrative and control bodies and their committees, roles, responsibilities and competencies.

The criteria for determining directors' compensation are described in the "Remuneration Report", drafted in compliance with the requirements envisaged by Art. 123-ter of the Consolidated Law on Finance and Art. 84 quater of the Consob Issuers' Regulation and published under the "Investors/Shareholders' Meeting" section of the Company's website.

Unusual and/or atypical transactions

Based on the information received from Group companies, no unusual or atypical transactions took place as defined by Consob in its communication no. 6064293 of 28 July 2006.

Other information

Russia-Ukraine conflict

The conflict between Russia and Ukraine, which has continued for over 3 years, continues to have important consequences at global level not only due to the serious humanitarian crisis that has ensued, but also due to the economic effects that are difficult to predict.

Although the Eurotech Group continues to have no relations with Ukraine and Russia, as it has no raw material suppliers and no production sites located in Russia and Ukraine, it cannot be excluded that a further escalation of the conflict could have unforeseeable effects on other neighbouring countries and an impact on procurement costs. The situation is closely monitored in order to be able to react promptly to any changes in the context

Israel – Palestine conflict

With regard to the conflict in the Middle East between Israel and Palestine, which arose at the beginning of October 2023, although there are no direct implications for the Group as there are no trade relations in that area, the general ramifications are still definitely uncertain and they should become more unstable over time. Also in this case, from an initial analysis, there could be impacts both in terms of cost volatility (e.g. energy) and in international trade relations. The situation remains monitored in order to take important remedial actions in the event of a worsening of the conflict or its territorial expansion.

Events after the reporting period

With the aim of supporting the achievement of the Eurotech Group's next objectives, without further increasing its exposure to credit institutions and at the same time strengthening the Company's capital structure, the relative majority shareholder, Emera S.r.l., after signing a commitment in January 2025 to make payments in exchange for a future capital increase of €6 million, which had already been paid in full by July, signed a further commitment in September 2025 to support the Group's cash requirements up to an additional amount of €6.5 million.

In addition, the directors, who last year received a mandate from the shareholders' meeting to carry out a capital increase, even in several tranches, up to a maximum of €20 million (to date executed for €2.5 million in conversion of future capital increase payments already made by Emera S.r.l.), have convened a shareholders' meeting for the 15 October 2025, in order to submit for shareholders' approval the amendment to the Articles of Association regarding the thresholds for the mandatory public tender offer (PTO), currently set at 30% of the share capital, with a request to raise this ratio to the maximum of 40% provided for by applicable regulations.

No other significant events occurred after the end of the half-year and up to 11 September 2025.

Condensed consolidated half-year financial statements at 30 June 2025

Consolidated statement of financial position

(€'000)	Notes	at June 30, 2025	of which at December 31, related 2024 parties	of which related parties
ASSETS
Intangible assets	1	60.886	62.425
Property, Plant and equipment	2	7.759	8.367
Investments in affiliate companies	3	4	4
Investments in other companies	3	138	152
Deferred tax assets	27	2.177	1.647
Other non-current assets		455	480
Total non-current assets		71.419	73.075
Inventories	4	16.515	17.141
Trade receivables	5	9.501	12.405
Income tax receivables	6	693	934
Other current assets	7	1.789	1.498
Other current financial assets	8	12	115
Derivative instruments	31	11	29
Cash & cash equivalents	9	6.414	6.170
Total current assets		34.935	38.292
Total assets		106.354	111.367
LIABILITIES AND EQUITY Share capital Reserves Share premium reserve Net profit (loss) for period Other reserves Group shareholders' equity	11	9.657 ( 84.169) 138.122 ( 7.564) ( 91.733) 56.046	8.879 ( 48.460) 136.400 ( 36.155) ( 84.615) 60.664
Equity attributable to minority interest	11	-	-
Total shareholders' equity	11	56.046	60.664

Medium-/long-term borrowing	13	16.278	17.551
Employee benefit obligations	14	2.242	2.331
Deferred tax liabilities	27	3.011	3.164
Other non-current liabilities	15	940	1.200
Total non-current liabilities		22.471	24.246
Trade payables	16	10.297	9.040
Trade payables from affiliates companies	16	349	349 399	399
Short-term borrowing	13	8.740	9.048
Income tax liabilities	6	733	953
Other current liabilities	17	7.603	6.902
Business combination liabilities	18	115	115
Total current liabilities		27.837	26.457
Total liabilities		50.308	50.703
Total liabilities and equity		106.354	111.367

Consolidated income statement

(Migliaia di Euro)	Notes	H1 2025	of which non recurrent	of which related parties	H1 2024	of which non recurrent	of which related parties
Revenues from sales of products and services		21.483		-	29.261		3
Other revenues	24	303			279
Operating costs:
Cost of materials	19	( 10.895)			( 14.721)
Service costs	21	( 6.020)	( 569)	( 171)	( 6.924)	( 116)
Lease & hire costs	20	( 351)			( 474)
Payroll costs	22	( 10.899)	( 568)		( 12.053)	( 182)	( 526)
Other provisions and other costs	20	( 422)	( 99)		( 663)	( 111)
Cost adjustments for in-house generation of non-current	20	1.518			1.805
Depreciation & amortisation	25	( 2.435)			( 2.263)
Asset impairment		-	-		( 85)	-
Operating profit		( 7.718)	( 1.236)		( 5.838)	( 409)
Finance expense	26	( 955)			( 1.403)
Finance income	26	454			1.668
Profit before taxes		( 8.219)			( 5.573)
Income tax	27	655			62
Net profit (loss)		( 7.564)			( 5.511)
Minority interest		-			-
Group net profit (loss) for period		( 7.564)			( 5.511)
Base earnings (losses) per share	12	(0,214)			(0,156)
Diluted earnings (losses) per share	12	(0,214)			(0,156)

Consolidated statement of comprehensive income

(€'000)	Notes	H1 2025	H1 2024
Net profit (loss) before minority inerest (A)		(7.564)	(5.511)
Other elements of the statement of comprehensive income
Other comprehensive income to be reclassified to profit or loss insubsequent periods:
Net profit/(loss) from Cash Flow Hedge	31	(18)	(31)
Foreign balance sheets conversion difference		679	(4.215)
Exchange differences on equity investments in foreign companies	11	(2.728)	522
After taxes net other comprehensive income to be reclassified to profit or loss in subsequent periods (B)		(2.067)	(3.724)
Comprehensive net result (A+B+C)		(9.631)	(9.235)
Comprehensive minority interest		-	-
Comprehensive Group net profit (loss) for period		(9.631)	(9.235)

Consolidated statement of changes in equity

(€'000)	Share capital	Legal reserve	Share premium reserve	Conversion reserve	Other reserves	Cash flow hedge reserve	Actuarial gains/(losses) on defined benefit plans reserve	Exchange rate differences reserve	Treasury shares	Profit (loss) for period	Group shareholder s' equity	Equity attributable to Minority interest	Total shareholder s' equity
Balance as at December 31, 2023	8.879	1.776	136.400	375	( 51.270)	102	( 543)	3.380	( 662)	( 3.118)	95.319	-	95.319
2023 Result allocation	-	-	-	-	( 3.118)	-	-	-	-	3.118	-	-	-
Profit (loss) as at December 31, 2024	-	-	-	-	-	-	-	-	-	( 36.155)	( 36.155)	-	( 36.155)
Comprehensive other profit (loss):
- Hedge transactions	-	-	-	-		( 73)	-	-	-	-	( 73)	-	( 73)
- Actuarial gains/(losses) on defined benefit plans for employees	-	-	-	-		-	30	-		-	30	-	30
- Foreign balance sheets conversion difference	-	-	-	( 2.562)	-			-	-	-	( 2.562)	-	( 2.562)
- Exchange differences on equity investments in foreign companies	-	-	-	-		-	-	1.231	-	-	1.231	-	1.231
Total Comprehensive result	-	-	-	( 2.562)	-	( 73)	30	1.231	-	( 36.155)	( 37.529)	-	( 37.529)
- Performance Share Plan	-	-	-	-	387	-	-	-	-	-	387	-	387
- Future capital increase payment				-	2.500	-			-		2.500		2.500
Change in consolidation area	-	-	-	-	( 13)	-	-	-	-	-	( 13)	-	( 13)
Balance as at December 31, 2024	8.879	1.776	136.400	( 2.187)	( 51.514)	29	( 513)	4.611	( 662)	( 36.155)	60.664	-	60.664

(€'000)	Share capital	Legal reserve	Share premium reserve	Conversion reserve	Other reserves	Cash flow hedge reserve	Actuarial gains/(losses) on defined benefit plans reserve	Exchange rate differences reserve	Treasury shares	Profit (loss) for period	Group shareholder s' equity	Equity attributable to Minority interest	Total shareholder s' equity
Balance as at December 31, 2024	8.879	1.776	136.400	( 2.187)	( 51.514)	29	( 513)	4.611	( 662)	( 36.155)	60.664	-	60.664
2024 Result allocation	-	-	-	-	( 36.155)	-	-	-	-	36.155	-	-	-
Profit (loss) as at June 30, 2025	-	-	-	-	-	-	-	-	-	( 7.564)	( 7.564)	-	( 7.564)
Comprehensive other profit (loss):
- Hedge transactions	-	-	-	-		( 18)	-	-	-	-	( 18)	-	( 18)
- Actuarial gains/(losses) on defined benefit plans for employees	-	-	-	-	( 22)	-	22	-		-	-	-	-
- Foreign balance sheets conversion difference	-	-	-	679	-			-	-	-	679	-	679
- Exchange differences on equity investments in foreign companies	-	-	-	-		-	-	( 2.728)	-	-	( 2.728)	-	( 2.728)
Total Comprehensive result	-	-	-	679	( 22)	( 18)	22	( 2.728)	-	( 7.564)	( 9.631)	-	( 9.631)
- Performance Share Plan	-	-	-	-	114	-	-	-	-	-	114	-	114
Increase of capital	778		1.722	-	( 2.601)	-			-		( 101)		( 101)
Future capital increase payment				-	5.000	-			-		5.000		5.000
Change in consolidation area	-	-	-	-	-	-	-	-	-	-	-	-	-

Balance as at June 30, 2025	9.657	1.776	138.122	( 1.508)	( 85.178)	11	( 491)	1.883	( 662)	( 7.564)	56.046	-	56.046

Consolidated cash flow statement

CONSOLIDATED CASH FLOW STATEMENT	Notes	at June 30, 2025	of which at June 30, related 2024	of which related
(€'000)			parties	parties
CASH FLOWS GENERATED BY OPERATIONS:
Group net profit (loss) for period		( 7.564)	( 5.511)
Adjustments to reconcile reported net profit with cash &
cash equivalents generated (used) in operations:
Depreciation & amortization intangible assets, property, plant and	25	2.435	2.348
Interest income	26	( 3)	( 2)
Interest expenses	26	416	566
Income taxes of the period	27	-	( 238)
Stock Grant expenses	22	114	37
Provision for (use of) long-term employee severance indemnities	14	( 89)	( 147)
Provision for (use of) risk provision	15	( 260)	58
(Provision for) / use of deferred tax asset / Provision for (use of) deferred tax liability	27	365	( 207)

Changes in current assets and liabilities
Trade receivables	5	2.529	(2) 4.917	(1)
Other current assets	7	21	( 26)
Inventories and contracts in process	4	198	( 510)
Trade payables	16	1.365	(32) 600	(264)
Other current liabilities	17	664	( 2.251)
Total adjustments and changes		7.755	5.145

Cash flow generated (used) in operations		191	( 366)

CASH FLOW FROM INVESTMENT ACTIVITIES:
Sales of tangible and intangible assets Interest income	1/2 30	82 3	4 2
Purchase of intangible fixed assets	1	( 1.617)	( 1.793)
Purchase of tangible fixed assets	2	( 226)	( 342)
Decreases (Increases) other financial assets	8	103	33
Net (investments) Divestments in long-term investments and non-current as		39	41

Cash flow generated (used) in investment activities		( 1.616)	( 2.055)
CASH FLOW FROM FINANCING ACTIVITIES:
Other changes in shareholders' equity	11	4.899	-
Loans taken	13	2.069	450
Interest paid		( 416)	( 566)
(Repaid) loans short and medium/long term	13	( 4.060)	( 2.702)
Cash flow generated (absorbed) by financial assets
		2.492	( 2.818)
Net foreign exchange difference		( 823)	( 556)

Increases (decreases) in cash & cash equivalents		244	( 5.795)

Opening amount in cash & cash equivalents	9	6.170	11.428
Cash & cash equivalents at end of period	9	6.414	5.633

Explanatory notes to the financial statements

A – Corporate information

The publication of the condensed consolidated half-year financial statements of Eurotech S.p.A. for the period ended 30 June 2025 was authorised by resolution of the Board of Directors on 11 September 2025. Eurotech S.p.A. is a joint-stock company incorporated and domiciled in Italy. The Group has its registered office in Amaro (UD), Italy.

Eurotech is a Group active in the research, development, and marketing of miniaturised computers and highperformance computers featuring high energy capacity. Moreover, within this business line it provides complete solutions or blocks of solutions and products for the Internet of Things through intelligent devices and an intelligent proprietary connectivity and communications platform. For more information, see Note D.

B – Reporting policies and IFRS compliance

The consolidated annual financial statements of Eurotech Group were prepared in accordance with IFRS international accounting standards issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to Art. 6 of EC Regulation 1606/2002 of the European Parliament and European Council of 19 July 2002.

These condensed consolidated half-year financial statements for the six-month period ended 30 June 2025 were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting", Art. 154-ter of the Consolidated Law on Finance and subsequent amendments, as well as the relevant Consob provisions. These condensed consolidated half-year financial statements do not contain all the information and notes required for drafting the consolidated annual financial statements and therefore this report must be read together with the consolidated annual financial statements at 31 December 2024.

To prepare the interim financial statements, management must make estimates and assumptions that affect the values of revenues, costs, assets and liabilities in the financial statements and the disclosure of potential assets and liabilities at the interim reporting date. If in the future, these estimates and assumptions, which are based on management's best valuations, differ from the actual circumstances, they would be modified appropriately in the period in which the circumstances arise. For a more detailed description of the Group's most significant valuation processes, please refer to note "C – Discretionary valuations and relevant accounting estimates" in the consolidated financial statements at 31 December 2024.

Moreover, note that certain valuation processes, in particular, more complex ones, such as calculating any impairment of non-current assets, are generally carried out fully only upon drafting of the annual financial statements, when all necessary information is available, except in cases in which there are impairment indicators that require an immediate valuation of any losses in value.

Income taxes are recognised based on the best estimate of the weighted average rate expected for the entire year.

The accounting standards, consolidation principles, and valuation criteria adopted for the preparation of the condensed consolidated half-year financial statements are consistent with those used for the preparation of the consolidated financial statements at 31 December 2024. The sole exception is for the adoption of new accounting standards, amendments and interpretations in force from 1 January 2025.

Following are the standards, amendments and interpretations that became effective as of 1 January 2025 and that were applicable for the first time to the condensed consolidated half-year financial statements at 30 June 2025. The application of these standards had no particular impact on the consolidated financial statements of the Group since they regulate matters not present, or affect only financial reporting:

Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates - On November 12, 2024, Regulation (EU) No. 2024/2862 was issued, incorporating certain amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates. The amendments clarify how an entity should operate/calculate and how it should determine the spot exchange rate if a currency, although convertible, has a lack of convertibility (a relatively uncommon situation but one that could arise, for example, when authorities impose currency controls that prohibit currency exchange or limit the volume of transactions). In addition, the amendments require disclosures that enable users of financial statements to understand the impact of a currency not being freely convertible.

These amendments had no impact on the Group's half-yearly condensed consolidated financial statements.

The following is a brief description of the IFRS accounting standards, amendments, and interpretations that have not yet been endorsed by the European Union. As of the date of this document, the competent bodies of the European Union have not yet completed the endorsement process necessary for the adoption of the amendments and standards described below.

IFRS 18 Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for the presentation of the income statement, including specific totals and subtotals. Furthermore, entities will have to classify all costs and revenues within the income statement into four categories: operating, investing, financing, income taxes, and discontinued operations, where the first three categories are new.

The standard also requires disclosure based on the new definition of management-defined performance measures (MPMs), subtotals of costs and revenues, and includes new provisions for the aggregation and disaggregation of financial information based on the identified roles of Primary Financial Statements (PFS) and notes.

In addition, amendments have been made to IAS 7 Cash Flow Statements, which include changing the starting point for determining cash flows from operating activities using the indirect method from profit or loss to operating profit or loss and removing the option to classify cash flows from dividends and interest. Furthermore, consequential amendments have been made to several other accounting standards.

IFRS 18 and the amendments to other standards are effective for financial years beginning on or after 1 January 1 2027, but early application is permitted with disclosure. IFRS 18 will be applied retrospectively.

The Group is currently working to identify the impact that the amendments will have on the financial statements and notes to the financial statements.

IFRS 19 Subsidiaries without Public Accountability: Disclosure

In May 2024, the IASB issued IFRS 19, which allows eligible entities to opt for a reduction in their disclosure requirements while continuing to apply the provisions for recognition, measurement, and presentation in other IFRS accounting standards. To be eligible, at the end of the financial year, an entity must be a subsidiary as defined in IFRS 19, must not have public accountability, and must have a parent (ultimate or intermediate) that prepares consolidated financial statements, available to the public, prepared in accordance with IFRS accounting standards.

IFRS 19 will become effective for financial years beginning on or after 1 January 2027, with the possibility of early application.

As the Group's shares are publicly traded, the Group is not eligible for the application of IFRS 19.

The transition requirements clarify that an entity is not required to provide disclosures in interim financial statements for the first period of application of the amendments. Consequently, the amendments had no impact on the Group's condensed consolidated half-year financial statements.

The condensed consolidated half-year financial statements at 30 June 2025 are drawn up in euro, rounding amounts to the nearest thousand. They consist of the statement of financial position, the income statement, the statement of comprehensive income, the Consolidated statement of changes in Equity, the Consolidated statement of cash flows, and the following explanatory notes.

The data used for consolidation have been taken from the income statements and statements of financial position prepared by the Directors of individual subsidiaries. These figures have been appropriately amended and restated as necessary to align them with international accounting policies and with uniform Group-wide classification policies.

The condensed consolidated half-year financial statements were prepared in accordance with the general criteria of reliable and accurate presentation of the Group's financial position and results, as well as the cash flows, in compliance with the general principles of business continuity, accrual accounting, consistency of presentation, materiality and aggregation, prohibition of offsetting, and comparability of information.

Going concern

The Group's directors analyzed various internal and external factors (referring in this regard not only to the comments included in the management report, the information provided in the paragraphs on liquidity risk and subsequent events), also taking into account the current geopolitical situation, to identify the risks and uncertainties surrounding the adoption of the going concern assumption in the preparation of the condensed consolidated financial statements at June 30, 2025. In particular, the Group's performance in the first half of the year was analyzed, which, particularly for the Parent Company, showed lower than expected results in terms of revenues and margins. Although the approval of the Group's new business plan is expected at the end of the financial year, according to the procedures and timelines usually adopted by management, the directors updated a sensitivity analysis of the plan approved in March 2025 based on the information provided by the individual Group companies and the actions already taken in the first eight months of the year, as described in more detail in the section on impairment testing. The assumptions adopted in the sensitivity analyses carried out on the 2025-2029 plan, in order to obtain prospective cash flows updated as at the date of preparation of this financial report, highlighted the need to continue to rely on the support of financial institutions and shareholders in order to sustain the planned investments and, in general, the cash requirements identified by management. The analysis carried out by management, which examined the cash position of the Parent Company and Group companies over a time horizon of at least twelve months from the approval of the half-yearly report, considered the existing financial resources, as well as the credit lines granted and partially used by Group companies and the mitigation measures adopted, including the delegation of powers to the directors to carry out a capital increase of a further €17.5 million (after having already carried out a capital increase of €2.5 million in June 2025), and the related availability communicated by the relative majority shareholder to support the Company with additional payments towards a future capital increase of up to €6.5 million, it did not identify any significant uncertainties regarding the adoption of the going concern assumption for a period of at least twelve months from the reference date of these condensed consolidated half-year financial statements. This analysis highlighted the availability of sufficient financial resources to meet the commitments undertaken both for business operations and for existing loans, continuing interactions with lenders to obtain financial support consistent with prospective cash flows, which will be updated again with the preparation of the Group's new business plan.

C – Scope of consolidation

The condensed consolidated half-year financial statements include the half-year financial statements of the Parent Company, Eurotech S.p.A., and the Italian and foreign subsidiaries in which Eurotech directly or indirectly (through subsidiaries and affiliates) exercises control, makes financial and operating decisions and obtains the respective benefits.

Subsidiaries are consolidated from the date at which control is effectively transferred to the Group, and cease to be consolidated on the date at which control is transferred outside the Group.

The companies consolidated line-by-line in the basis of consolidation at 30 June 2025 are as follows:

Company name	Registered offices	Share capital

Parent company Eurotech S.p.A.	Via Fratelli Solari, 3/A – Amaro	€ 9,657,277
	(UD)

EthLab S.r.l.	Via Dante, 300 – Pergine Valsugana	€	115,000	100.00%
	(TN)
Eurotech Inc.	Columbia – MD (USA)		USD 26,500,000	100.00%
Eurotech Ltd.	Cambridge (UK)	GBP	33,333	100.00%
E-Tech USA Inc.	Columbia – MD (USA)	USD	8,000,000	100.00%
Eurotech France S.A.S.	Lyon (France)	EUR	795,522	100.00%
I.P.S. Sistemi Programmabili S.r.l. in	Via Fratelli Solari 3/A – Amaro	EUR	51,480	100.00%
liquidation	(Udine, Italy)
InoNet Computer GmbH	Taufkirchen (Germany)	EUR	250,000	100.00%
Advanet Inc.	Okayama (Japan)		JPY 72,440,000	90.00% (1)

Subsidiaries consolidated line-by-line

(1) Officially, the Group owns 90% of the company, but as Advanet holds 10% of the share capital in the form of treasury shares, it is fully consolidated.

Affiliates consolidated at equity
-----------------------------------	--	--

Rotowi Technologies S.p.A. in	Via Carlo Ghega, 15 – Trieste	21.31%
liquidation (formerly U.T.R.I. S.p.A.)

Other smaller companies
Kairos Autonomi Inc.	Sandy – UT (USA)	19.00%

As there were no changes in the period ending 30 June 2025 compared to the situation existing at 31 December 2024, it should be noted that in July the French company Eurotech France S.A.S. was liquidated.

The exchange rates used to convert the financial statements of foreign companies into the Eurotech Group's reference currency (euro) are presented in the following table and correspond to those issued by the Bank of Italy:

Currency	Average 6M 2025	As of June 30, 2025	Average 2024	As of December 31, 2024	Average 6M 2024	As of June 30, 2024
British pound sterling	0,84229	0,85550	0,84662	0,82918	0,85465	0,84638
Japanese Yen	162,11952	169,17000	163,85191	163,06000	164,46135	171,94000
USA Dollar	1,09275	1,17200	1,08238	1,03890	1,08125	1,07050

D – Segment reporting

For management purposes, the Group considers only one business sector as relevant: the "Modules and Platform" sector. Thus, the disclosure is provided for the sole identified sector, broken down on a geographical basis. The geographical areas are produced in relation to the various group entities and based on the criteria with which they are currently monitored by top management.

The Group's geographical areas are defined according to the localisation of Group assets and operations. They are: Europe, North America and Asia.

Management monitors the gross profit margin of the individual business units separately for the purposes of resources allocation and performance assessment.

	North America			Europe			Asia			Correction, reversal and elimination			Total
	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change	H1 2025	H1 2024	% YoY Change
Third party Sales	1.353	5.201		12.232	17.000		7.898	7.060		0	0		21.483	29.261
Infra-sector Sales	1	72		993	3.171		0	12		( 994)	( 3.255)		0	0
Total Sales revenues	1.354		5.273 -74,3%	13.225		20.171 -34,4%	7.898		7.072 11,7%	( 994)		( 3.255) -69,5%	21.483		29.261 -26,6%

With regard to the sales performance by geographic area, shown in the table above, to be noted is - as already mentioned - that the European area had a slight decrease while the other two geographic areas sustained more noticeable decreases.

The table below shows assets and investments in the Group's individual business segments at 30 June 2025 and 31 December 2024.

(€'000)	North America			Europe Asia			Correction, reversal and elimination		Total
	H1 2025	FY 2025	H1 2025	FY 2025	H1 2025	FY 2025	H1 2025	FY 2025	H1 2025	FY 2025
Assets and liabilites
Segment assets	2.777	5.660	71.763	75.080	57.656	60.444	-25.984	-29.958	106.212	111.226
Investments in subsidiaries non consolidated, associate & other
companies	112	126	30	30	0	0	0	0	142	156
Total assets	2.889	5.786	71.793	75.110	57.656	60.444	-25.984	-29.958	106.354	111.382
Segment liabilities	784	1.734	39.960	39.804	14.054	14.706	-4.490	-5.541	50.308	50.703
Total liabilities	784	1.734	39.960	39.804	14.054	14.706	-4.490	-5.541	50.308	50.703

Other segment information
Investments in tangible assets	0	6	168	393	306	2.633	0	0	474	3.032
Investments in intangible assets	0	0	1.458	3.110	159	107	0	0	1.617	3.217
Depreciation & amortisation	85	321	1.577	2.995	625	1.051	148	22.934	2.435	27.301

E – Breakdown of main items of the statement of financial position

1 – Intangible assets

The following table shows the changes in the historical cost and accumulated amortisation of intangible assets in the reporting period:

(€ '000)	DEVELOPMEN T COSTS	GOODWILL	SOFTWARE TRADEMARKS PATENTS	ASSETS UNDER CONSTRUC TION & ADVANCES	OTHER INTANGIBLE ASSETS	TOTAL INTANGIBLE ASSETS
Purchase or production cost	21.962	77.097	25.403	5.106	24.884	154.452
Previous years' impairment	( 1.514)	( 33.774)	( 8.443)	( 171)	-	( 43.902)
Previous years' amortisation	( 16.616)	-	( 8.203)	-	( 23.306)	( 48.125)
OPENING BALANCE 2025	3.832	43.323	8.757	4.935	1.578	62.425
Purchases / Additions	1.387	-	39	191	-	1.617
Changes in consolidation area	-	-	-	-	-	-
Disposals / Divestitures	( 77)	-	-	-	-	( 77)
Decreases due to business unit disposals	-	-	-	-	-	-
Other changes	( 149)	( 4.867)	( 1.114)	( 6)	( 975)	( 7.111)
Impairment in period	-	-	-	-	-	-
Transfers	2.474	-	-	( 2.474)	-	-
Amortisation in period	( 1.213)	-	( 245)	-	( 75)	( 1.533)
Reversal of cumulative amortisation	77	-	-	-	-	77
Other changes in cumulative impairment	39	3.515	620	-	-	4.174
Other changes in cumulative amortisation	94	-	248	-	972	1.314
TOTAL CHANGES 2025	2.632	( 1.352)	( 452)	( 2.289)	( 78)	( 1.539)
Purchase or production costs	25.597	72.230	24.328	2.817	23.909	148.881
Impairment	( 1.475)	( 30.259)	( 7.823)	( 171)	-	( 39.728)
Cumulative amortisation	( 17.658)	-	( 8.200)	-	( 22.409)	( 48.267)
CLOSING BALANCE 2025	6.464	41.971	8.305	2.646	1.500	60.886

The decrease of €1.54 million is attributable to a combination of new investments totalling €1.62 million, a negative foreign exchange variation of €1.63 million and amortisation of total €1.53 million registered in the first half-year. The total amount in fact went from €62.42 million last year to €60.89 million at the end of the first half of 2025.

Investments made in the first six months of the year mainly relate to Group plans to develop new products, both on new IoT technologies and on products ordered to Edge computers and Edge AI.

The Other changes, Other changes, accumulated write-downs and Other changes, accumulated amortisation items refer to exchange differences accrued on the opening balances of the values expressed in foreign currencies whose net value is €1.62 thousand.

Goodwill refers to the higher value paid, upon acquisition of fully consolidated subsidiaries, in excess of the fair value of the assets and liabilities acquired. Goodwill is not amortised but is subject to impairment tests at least once a year.

In order to carry out the impairment test, the goodwill items and the assets with indefinite and definite useful lives, which were acquired through business combinations, were allocated to their respective cash-generating units, corresponding to the legal entity or Group of companies to which they refer to test for impairment.

The book value of goodwill and trademarks with indefinite useful lives allocated to each of the cash-generating units are as follows:

(€ '000)	at June 30, 2025		at December 31, 2024
Cash generating units	Goodwill	Trademark with an indefinite useful life	Goodwill	Trademark with an indefinite useful life
Advanet Inc.	32.965	6.260	34.200	6.494
InoNet Computer GmbH	5.221	-	5.221	-
Eurotech Ltd.	3.695	-	3.812	-
Other	90	-	90	-
TOTAL	41.971	6.260	43.323	6.494

The change in the values of Advanet Inc. and Eurotech Ltd. is attributable to the fact that these values are expressed in the functional currency of foreign operations and subsequently converted at each reporting date using the precise exchange rate on that date.

The Trademarks item includes the valuation of the "InoNet" trademark following the acquisition of the company of the same name which is subject to amortisation (the residual value as at 30 June 2025 is €1.742 thousand), and the "Advanet" trademark, which was recognised at the time of the acquisition of the Group of the same name, and which continues to be defined by the Directors as an asset with an indefinite life, as its use for commercial and production purposes is deemed to have no defined time limits, taking into account its characteristics and positioning in the Japanese market. As a result, this value (which as at 30 June 2025 amounted to €6,260 thousand) is not subject to amortisation but is subject at least annually to an impairment test.

Goodwill refers to the higher value recognised on the whole when fully-consolidated subsidiaries were acquired, in excess of the fair value of the assets and liabilities acquired from time to time.

The Group performs the impairment test at least annually on December 31 and when circumstances indicate the possibility of a reduction in the recoverable amount of goodwill and other assets with indefinite useful lives. The impairment test of goodwill and intangible assets with indefinite useful lives is based on the calculation of value in use.

In reviewing its impairment indicators, the Group considers, among other factors, the performance of the stock, the ratio of its market capitalization to its book equity, and the performance of sales volumes compared to budget forecasts.

During the first half of the year, the share price improved compared to 31 December 2024, and market capitalization rose from €27 million to €40 million (€40 million also at 30 June 2024). Although the current market capitalization is close to the Group's net equity of €56 million (€61 million as of 31 December 2024), the difference remains significant and may therefore indicate the existence of a potential impairment loss on goodwill, trademarks with indefinite useful lives, and, more generally, the Group's net assets.

In addition, the general trend of the market in which the Group operates and the global geopolitical situation have negatively affected sales compared to the forecasts in the latest business plan approved by the Board of Directors.

In light of these factors, and considering the changes that have taken place within the Parent Company's Board of Directors, as well as the values considered in the recent capital increase, the Directors performed an impairment test at 30 June 2025 for all CGUs to which intangible assets with indefinite useful lives are allocated. In order to verify any impairment of goodwill and other intangible assets with a finite useful life allocated to the various CGUs, the Directors' Parent company critically analyzed, as of 30 June 2025, the valuation processes conducted as of 31 December 2024, approved by the Board of Directors on 13 March 2025, which were also carried out with the support of independent experts. Again with the support of independent consultants (the same ones who carried out the analysis at 31 December 2024), based on the information available at the time, the economic and financial situations of the various CGUs at 30 June 2025 were analyzed, comparing them with the 2024 figures, the 2025 budget, and a year-end forecast carried out by the individual CGUs.

The recoverable amounts of the individual CGUs were determined based on the higher of the value in use, determined using the discounted cash flow (DCF) method, and the respective fair value. To calculate the relative value, the discounted cash flow projections resulting from a sensitivity plan compared to the one approved by the Parent Company's directors in March 2025 were used, while cash flows beyond the explicit horizon envisaged by the Plan and for the purposes of determining the terminal value were extrapolated using the perpetual annuity method based on the normalized cash flows of the fifth year of the approved plan. The plans were drawn up in their respective functional currencies and the resulting recoverable values were uniformly compared with the carrying amounts in currency referring to the various cash-generating units. The directors did not therefore proceed with the approval of a new multi-year plan, which will be updated in the coming months, also based on the recommendations that the new CEO will propose to the Board, but verified how the most recent closing forecasts for the 2025 financial year, the actions already undertaken in the first eight months of the year could affect and continue to be reasonably aligned with the explicit cash flows of the plan already approved by the Board of Directors for the years 2025-2029. In particular, slightly more conservative assumptions were made with regard to turnover and vertical production integration between group companies, and additional corrective measures already taken on operating costs compared to the approved plan and their effects over the course of the Plan were taken into account.

The growth rate "g" used to determine the terminal value, equal to that used for impairment purposes at 31 December 2024, was between 1.4% and 2.0%, depending on the average long-term inflation rate expected in the various reference markets (in detail: 1.4% for Japan, 1.9% for the UK, 2.0% for Germany, and finally 1.9% for Italy.). The discount rate (WACC - Weighted Average Cost of Capital) applied to prospective cash flows varies according to the different impact that the main business lines have on the Plan in the various years and has been weighted accordingly. The WACC therefore varies between 6.32% and 12.25%, calculated on the basis of the country in which the individual companies operate, the average debt structure of the sector in the various years of the Plan, and was determined net of the tax effect.

The development of the discount rate (WACC), taking into account changes during the six-month period, is shown below:

	ITA	JAP	GER	UK

	from 1,38% to
Risk free	2,97%	1,38%	2,53%	4,54%
Total Market Premium	5,31%	5,10%	5,40%	5,40%
	from 1.10 to	from 1,01 to		from 1.10 to
Beta unlevered	1.11	1.10	1.11	1.11
WACC	10,10%	6,39%	10,12%	11,79%
g rate	1,90%	1,40%	2,00%	1,90%

With reference to the growth rate "g" used to determine the terminal value, similar to the one envisaged as at 31 December 2024 (values ranging from 1.4% to 2.0%) is used, which is consistent with the inflation and GDP expectations of the countries in which the CGUs operate and also with reference to the terminal value itself, the same assumptions made for the impairment test carried out as at 31 December 2024 were used.

Based on the considerations made by management, even though the recoverable values of the CGUs are somewhat lower than those determined as at 31 December 2023, there is no need to write down the assets.

Further changes in interim results and discounting rates would lead to impairment in the Eurotech Inc, Advanet Inc and Eurotech LTD CGUs. In particular, the recoverability of the values of intangible assets related to the acquisition of the different CGUs appears to be contingent on the occurrence of any changes in the key assumptions assumed for the related estimate. The excess of carrying values over recoverable values would occur differently from CGU to CGU. In this regard, some sensitivity analyses were also prepared in order to assess the volatility of the results obtained consequent to the variation of some parameters considered in the valuation exercise, such as WACC and g-rate, WACC and EBITDA reduction over the Plan horizon. The sensitivity analyses carried out showed potential impairments in case of deterioration of even single of the above parameters. All other things being equal, the WACC of Terminal Value, which would result in an impairment situation is expected to be 10.1% with reference to the Consolidated Financial Statements, 7.5% percent for Advanet Inc., 13.3% for Eurotech Ltd. and 25.5% for InoNet Computer GmbH. Recognizing that, based on the still-expanding stage the individual CGUs are in, the terminal values are significant (up to 95% of value in use), assumptions were analyzed for even significant reductions in EBITDA values with other balance sheet elements held constant. Sensitivity analyses showed that, if other test conditions remained unchanged, a 8.4% reduction in consolidated EBITDA over the plan horizon would result in a decrease in value; Conversely, a 10% reduction on individual CGUs in the same indicator over the plan horizon would not result in any impairment of the CGUs Advanet Inc., Eurotech Ltd., and InoNet GmbH. Finally, the long-term growth assumptions were considered consistent with the latest impairment test carried out in March 2025, regarding the 2024 financial statements, using a value between 1.4% and 2.0% depending on the country of reference.

As part of the analysis conducted, the Directors moreover considered the consistency of the consolidated net assets, which include significant intangible assets (both with a finite and indefinite useful life), and the Group's market capitalization, which in recent weeks has shown greater variability and signs of recovery. In particular, the market value of the shares was considered both in the averages expressed by stock market prices and in the recent capital increase that the Board of Directors carried out on the basis of a mandate approved by the shareholders' meeting, converting into share capital a first tranche of the future capital increase payments with which the reference shareholder guaranteed financial support to the Group. The Directors, supported in this by the activities carried out by their advisors both in the context of the aforementioned capital increase and during the update of the impairment test at June 30, 2025, believe that the conclusions reached with the identification of the value in use of their consolidated net assets, which take in account the expectations derived from forecast data, are not fully represented in stock market prices, also in view of the difficulties encountered in recent periods, which lead investors to maintain a cautious view of the stock. However, they believe that, with the financial support guaranteed by shareholders, including through the implementation of the capital increases already approved, the reorganization measures initiated, combined with the renewed strategic guidelines that will be defined with the approval of the Group's new business plan, will enable a recovery in margins and value creation consistent with the recovery of the net assets currently recorded in the financial statements.

2 – Property, plant and equipment

The table below shows changes in the historical cost and accumulated depreciation and the value of the assets in the period under review:

(€ '000)	LAND AND BUILDINGS	PLANT AND MACHINERY	INDUSTRIAL & COMMERCIAL EQUIPMENT	OTHER ASSETS	ASSETS UNDER CONSTRUC TION & ADVANCES	RIGHT OF USE ASSETS	TOTAL PROPERTY, PLANT & EQUIPMENT
Purchase of production cost	2.177	4.081	4.764	4.360	1.509	5.676	22.567
Depreciation	-	-	-	-	-	-	-
Previous year's depreciation	( 656)	( 3.577)	( 4.371)	( 4.007)	-	( 1.589)	( 14.200)
OPENING BALANCE 2025	1.521	504	393	353	1.509	4.087	8.367
Purchases / Additions	-	16	138	44	28	248	474
Disposals / Divestitures	-	( 192)	( 13)	( 36)	( 37)	( 317)	( 595)
Other changes	( 2)	( 78)	( 67)	( 50)	( 53)	( 52)	( 302)
Transfers	-	1.406		11	( 1.417)		-
Depreciation in period	( 30)	( 141)	( 89)	( 91)	-	( 551)	( 902)
Reversal of cumulative depreciation	-	150	13	33	-	317	513
Transfers amortisation	-	-	-	-	-	-	-
Other changes in cumulative amortisation	1	68	60	47	-	28	204
TOTAL CHANGES 2025	( 31)	1.229	42	( 42)	( 1.479)	( 327)	( 608)
Purchase or production cost	2.175	5.233	4.822	4.329	30	5.555	22.144
Cumulative depreciation	( 685)	( 3.500)	( 4.387)	( 4.018)	-	( 1.795)	( 14.385)
CLOSING BALANCE 2025	1.490	1.733	435	311	30	3.760	7.759

The other purchases refer mainly to computers, office equipment, industrial equipment and cars.

Right-of-use assets includes mainly leases, in accordance with IFRS 16. Leases refer to the rents of industrial and commercial buildings as well as office areas and leases of office machines. During the first half of 2024, some contracts were extended, new ones were signed, some were closed and others were replaced with a new contact. The increases equal to €103 thousand. These assets, concerning the "Right of use", are depreciated on a straight line basis for the duration of the contract, taking account of the renewal/termination options. Depreciation recognised with reference to the "Rights of use" assets during the year amounted to a total of €551 thousand. The item "other changes", referring to both the cost and the value of the relative accumulated depreciation, shows the effect of the different exchange rate used to convert the values of foreign entities at 30 June 2025 compared to that applied at 31 December 2024. The total net value is negative and amounts to €98 thousand.

3 – Equity investments in affiliates and other companies

The table below shows changes in equity investments in affiliates and other companies in the reporting period:

	at June 30, 2025
(€'000)	INITIAL VALUE	OTHER		EOP VALUE % OWNERSHIP
Investments in non-consolidated subsidiaries:
Insulab S.r.l.	4		4	40,00%
Rotowi Technologies S.r.l. in liquidazione (ex U.T.R.I. S.p.A.)	-	-	-	21,32%
TOTAL INVESTMENTS IN ASSOCIATE COMPANIES	4	-	4
Investments in other companies (valuation at fair value on the Profit&Loss):
Consorzio Ecor' IT	2	-	2
Consorzio Aeneas	5	-	5
Consorzio Ditedi	19	-	19	7,69%
Kairos Autonomi	125	( 14)	111	19,00%
Others	1		1
TOTAL INVESTMENTS IN OTHER
COMPANIES	152	( 14)	138
TOTAL INVESTMENTS	156	( 14)	142

Rotowi Technologies S.r.l. in liquidation (formerly U.T.R.I. S.p.A.) was valued using the equity method and the percentage of ownership is equal to 21.32%.

The other changes in other companies relate to the exchange rate effect.

4 - Inventories

The table below shows the breakdown of inventories at the end of the relevant reporting periods:

(€'000)	at June 30, 2025	at December 31, 2024
Raw & auxiliary materials and consumables - gross	13.163	13.873
Inventory write-down provision	(2.836)	(2.524)
Raw & auxiliary materials and consumables - net	10.327	11.349
Work in process and semi-finished goods - gross	771	366
Inventory write-down provision	(74)	(101)
Work in process and semi-finished goods	697	265
Finished poducts and goods for resale - gross	8.177	8.298
Inventory write-down provision	(2.950)	(2.783)
Finished products and goods for resale - net	5.227	5.515
Advances	264	12
TOTAL INVENTORIES	16.515	17.141

Inventories at 30 June 2025 amounted to €16.52 million, net of the inventory write-down provision totalling €5.86 million and the decrease compared to 31 December 2024 is €0.63 million. The net increase in the inventory write-down provisions of €0.45 million is mainly due to the combined effect of provisions made during the period and utilizations following the disposal of inventory items that had previously been fully or partially written down. An effect of €0.26 million is due to the exchange rate effect compared to the two periods under comparison.

The following table shows the changes in inventory write-down provision in the periods under review:

(€'000)	at June 30, 2025	at December 31, 2024
OPENING BALANCE	5.408	4.984
Provisions	1.135	1.275
Other changes	(260)	82
Utilisation	(423)	(933)
CLOSING BALANCE	5.860	5.408

The "other changes" item represents the movements in values expressed in the functional currency of foreign operations and subsequently converted at each reporting date using the exchange rate on that date.

5 – Trade receivables

The table below shows the breakdown of trade receivables and the respective doubtful debt provision at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Trade receivables - customers	10.197	13.091
Trade receivables - realted paties	-	3
Doubtful debt provision	(696)	(689)
TOTAL TRADE RECEIVABLES	9.501	12.405

Note that, at the reporting date, the Group did not present significant concentrations of credit risk, as the Group has a number of customers located throughout the various geographic areas of business. The risk profile of customers is essentially similar to that identified and assessed in the past year. These receivables are expected to be collected within the next year. Trade receivables are non-interest bearing and generally fall due at 90/120 days.

Trade receivables, net of the relative doubtful debt provision, decreased by €2.90 million compared to 31 December 2024. The decrease is mainly due to the different turnover generated in the months prior to the end of the reporting period and the trend in natural due dates of residual trade receivables at the end of June 2025, linked to the sales trend.

The receivables include €303 thousand in bank receipts presented subject to collection, but not yet due at the end of the period.

Receivables are shown after a doubtful debt provision of €0.68 million.

(€'000)	at June 30, 2025	at December 31, 2024
OPENING BALANCE	689	648
Provisioning	27	119
Other changes	(8)	5
Utilisation	(12)	(83)
CLOSING BALANCE	696	689

The net increase for the period was €7 thousand, due to the combined effect of the provision for the period for €27 thousand to adjust, individually, the value of receivables based on the expected losses on them, the utilisation of the provision for €12 thousand as the conditions for utilising the provision were met and a slight exchange rate effect for €8 thousand.

6 – Tax receivables and payables

Receivables for income taxes represent receivables from individual governments for direct taxation (IRES and income taxes in various countries), which should be recovered within the next year as well as receivables for withholdings made on dividends distributed to the Parent Company. Compared to 31 December 2024, this value decreased from €934 thousand to €693 thousand.

Income tax payables are made up of current taxes relating to the period still to liquidate and represent the amounts that the companies must pay to the tax authorities of the respective countries. They amounted to €733 thousand as at 30 June 2025. These payables are calculated according to the tax rates currently in force in each country. Foreign tax payables amounted to €533 thousand (2024: €451 thousand), those for Italian tax payables amounted to €200 thousand (null amount in 2024).

7 – Other current assets

The table below shows the breakdown of other current assets at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Advance payments to suppliers	107	186
Tax receivables	276	397
Other receivables	391	45
Accrued income and prepaid expenses	1.015	870
TOTAL OTHER CURRENT ASSETS	1.789	1.498

Tax receivables comprise mainly receivables for indirect tax (VAT). VAT receivables do not bear interest and are generally settled with the competent tax authority on a monthly basis.

Prepaid expenses relate to costs borne in advance for bank charges, maintenance fees, utilities, services and insurance.

8 – Other current financial assets

The "other current financial assets" item recorded under current assets amounted to €12 thousand with a decrease of €103 thousand compared to 31 December 2024 (€115 thousand).

The amount refers for €12 thousand to a multy-year insurance policy. The amount was reduced by €72 thousand due to the termination of an insurance policy and by €31 thousand following the termination of an investment in low-risk funds.

9 – Cash and cash equivalents

The table below shows the breakdown of cash and cash equivalents at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Bank and post office deposits	6.405	6.162
Cash and valuables in hand	9	8
TOTAL CASH & CASH EQUIVALENTS	6.414	6.170

Bank deposits are mostly on demand. The fair value of cash and cash equivalents was €6.40 million (€6.16 million at 31 December 2024).

Cash and cash equivalents increase by €0.24 million compared to 31 December 2024. For more information on cash and cash and cash equivalents, please refer to the cash flow statement and to the management report.

10 – Net financial position

The Group's net financial position as defined by the Consob notice no. 5/21 of 29 April 2021, which refers to the Guidelines of the European Securities and Markets Authority (ESMA), issued on 4 March 2021 and in force as from 5 May 2021 is as follows:

(€'000)		at June 30, 2025	at December 31, 2024
Cash	A	6.414	6.170
Cash equivalents	B	-	-
Other current financial assets	C	23	144
Cash equivalent	D=A+B+C	6.437	6.314
Current financial debt	E	4.261	6.808
Current portion of non-current financial debt	F	4.479	2.240
Other current financial liabilities	G	115	115
Short-term financial position	H=E+F+G	8.855	9.163
Short-term net financial position	I=H-D	2.418	2.849
Non current financial debt	J	16.278	17.551
Debt instrument	K	-	-
Trade payables and other non-current payables	L	-	-
Medium-/long-term net financial position	M=J+K+L	16.278	17.551
(NET FINANCIAL POSITION) NET DEBT ESMA	N=I+M	18.696	20.400

Net financial debt as at 30 June 20254 amounted to €18.70 million compared to €20.40 million as at 31 December 2024. The adoption of the IFRS 16 accounting standard meant the recognition by Group companies of financial liabilities for rights of use at 30 June 2025 equal to €3.96 million (€4.26 million at 31 December 2024).

The unique covenants present on a single loan can only be verified on the basis of year-end data.

11 – Equity

The table below shows the breakdown of equity at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Share capital	9.657	8.879
Reserves	( 84.169)	( 48.460)
Share premium reserve	138.122	136.400
Net profit (loss) for period	( 7.564)	( 36.155)
Other reserves	( 91.733)	( 84.615)
Group shareholders' equity	56.046	60.664
Equity attributable to minority interest	-	-
Total shareholders' equity	56.046	60.664

The share capital at 30 June 2025 was made up of 38,629,109 ordinary shares, fully subscribed and paid in, with no nominal value. On 23 June 2025, the Board of Directors, in partial execution of the mandate to increase the share capital conferred upon it by the Extraordinary Shareholders' Meeting of 15 October 2024, pursuant to Article 2443 of the Italian Civil Code, resolved to issue 3,113,325 new ordinary shares, increasing the share capital by €0.78 million.

The balance of the Issuer's legal reserve at 30 June 2025 amounted to €1.78 million.

The share premium reserve, which relates entirely to the Parent Company, is shown at a total amount of €138.12 million following the increase of €1.72 million during the period resulting from the conversion to capital and share premium reserve of the €2.5 million shareholder contribution made in 2024.

The negative translation reserve of €1,51 million is generated by inclusion in the condensed consolidated halfyear financial statements of the statements of financial position and income statements of US subsidiaries Eurotech Inc. and E-Tech USA Inc., as well as the UK subsidiary Eurotech Ltd. and the Japanese subsidiary Advanet Inc.

The "other reserves" item was negative for €85.18 million and consisted of the Parent Company's extraordinary reserve, formed by losses carried forward and undistributed profits in previous years, as well as other reserves of various origins. The change in the year is attributable to the allocation of 2024 results, the recognition of the Performance Share Plans as described in Explanatory Note 32 and from payments made during the period by shareholders for a future capital increase of €5 million and from the use of the reserve to increase the share capital and the share premium reserve, net of the costs incurred for the capital increase itself.

The cash flow hedge reserve, which includes cash flow hedge transactions pursuant to IFRS 9, was positive for €11 thousand and decreased by €18 thousand gross of the tax effect.

The foreign exchange reserve, which recognises – based on IAS 21 – foreign exchange differences relating to intragroup foreign-currency loans that constitute part of a net investment in foreign operations, was positive for €1.88 million, an increase of €2.73 million.

The Parent Company Eurotech S.p.A. held 240,606 treasury shares at the end of the reporting period. There were no changes during the six-month period.

12 – Basic and diluted earnings (losses) per share

Base earnings (losses) per share (EPS) are calculated taking into account the potential dilutive effect of convertible financial instruments, stock options, and other instruments that may result in the issuance of new ordinary shares. In particular, the calculation of diluted earnings per share at 30 June 2025 reflects the capital increase carried out on 23 June 2025 and the impact of the vesting of service conditions at the balance sheet date, relating to 57,000 shares, as part of the 'EUROTECH S.p.A. 2022-2024 Performance Share Plan'.

The tables below show earnings and information on the shares used to calculate the basic and diluted EPS.

	at June 30, 2025	at June 30, 2024
Net income (loss) attributable to parent
company shareholders	( 7.564.000)	( 5.511.000)
Weighted average number of ordinary shares including own shares	35.636.189	35.515.784
Own shares	( 240.606)	( 240.606)
Weighted average number of ordinary shares except own shares	35.395.583	35.275.178
Weighted average number of ordinary shares except own shares for share diluted	35.396.843	35.275.178
Net income (loss):
- per share	( 0,214)	( 0,156)

- per share diluted	( 0,214)	( 0,156)

13 – Financial liabilities

The table below shows the breakdown of short- and medium/long-term financial liabilities at 30 June 2025:

TYPE	COMPANY	BALANCE ON	SHORT TERM within	Total Medium and	Mid term Over 12	Long term Over 5 years	BALANCE ON
(€'000)		30.06.2025	12 months	long-term	months		31.12.2024
CURRENT OUTSTANDINGS - (a)		4.261	4.261	-	-	-	6.767
Lease liabilities		3.958	967	2.991	2.991	-	4.261
TOTAL OTHER FINANCINGS - (b)		3.958	967	2.991	2.991	-	4.261
Unsecured loans	Eurotech S.p.A.	11.951	2.180	9.771	9.567	215	11.990
Unsecured loans	Advanet Inc.	4.088	1.274	2.814	2.814	-	2.791
Mortgage loan	Eurotech S.p.A.	760	58	702	234	468	790
TOTAL BANK DEBT - (c)		16.799	3.512	13.287	12.615	683	15.571
TOTAL OTHER FINANCING AND BANK DEBT - [(b) + (c)]		20.757	4.479	16.278	15.606	683	19.832
TOTAL DEBT - [(a) + (b) + (c)]		25.018	8.740	16.278	15.606	683	26.599

In the first half of 2025, portions of medium/long-term loans falling due were paid in the amount of €0.84 million and new loans totalling €2.07 million were taken out by the Japanese company.

The item "other loans" includes a residual payable of €3.96 million (of which €2.99 million was medium-term) for leases accounted for in accordance with IFRS 16.

All existing bank loans as at 30 June 2025 are denominated in euro, with the exception of loans granted to the Japanese subsidiary, which are in Japanese yen, while the other loans, referring to liabilities tied to lease contracts, are expressed in three currencies, which are some of the reference currencies of the various Group companies (EUR, JPY and GBP).

14 – Employee benefits

The table below shows the breakdown of employee benefits at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Employees' leaving indemnity	340	343
Foreing Employees' leaving indemnity	1.902	1.988
TOTAL EMPLOYEES' BENEFITS	2.242	2.331

Defined-benefit plans

The Group has defined-benefit pension plans both in Italy and Japan, disbursed on or after termination of employment through defined contribution and defined benefit plans.

For the part of defined-contribution plans in which contributions are made to a separately administered fund, the Group's legal or constructive obligation is limited to the amount of contributions to be made.

In defined benefit plans, on the other hand, the adjustment of the net liability of the plans (net of any plan assets) is recognized in the income statement on the basis of actuarial assumptions on an accrual basis, consistent with the benefits required to be earned. The liability is valued by independent actuaries using models based on demographic assumptions, in relation to mortality and turnover rates of the target population, and financial assumptions, in relation to the discount rate reflecting the time value of money and the inflation rate.

The amount to be recognized as an expense in the income statement consists of the following elements:

the social security cost related to current employment benefits, charged to personnel costs;
- the interest cost, charged to financial expenses.

Actuarial gains or losses arising from revaluations of the net liability for defined benefit plans are recognized immediately in other comprehensive income.

The changes in the Italian and foreign "pension fund" items that are related to defined-benefit plans are as follows:

(€ '000)	Defined benefit plans
	Italy		Japan
	at June 30, 2025	31.12.2024	at June 30, 2025	31.12.2024
Projected benefit obligation at the beginning of the period	343	330	1.988	2.052
Current Service cost		20	101	169
Interest cost	3	5	-	25
Other changes			( 75)	( 93)
Pensions paid	( 6)	( 20)	( 112)	( 113)
Recognized actuarial gains or losses		8	-	( 52)
Projected benefit obligation at the end of the period	340	343	1.902	1.988

15 – Provisions for risks and charges

The table below shows the breakdown and changes in provisions for risks and charges at 30 June 2025 and 31 December 2024:

(€'000)	at December 31, 2024	Provision	Utilization	Other	at June 30, 2025
Selling agents' commission fund	30	-	(1)	-	29
Guarantee reserve	478	112	(101)	(22)	467
Busting depreciable asset	356	-	-	(11)	345
Other long therm risk provision	336	99	(336)	-	99

TOTAL FUNDS FOR COSTS AND FUTURE RISKS	1.200	211	( 438)	( 33)	940

The "selling agents' commission fund" is allocated based on the amounts envisaged by legislation and collective economic agreements regarding situations of interruption in the mandate given to agents. The effect of discounting the share of liabilities that will be liquidated beyond the next year is not expected to be significant.

The product warranty provision is allocated based on the expectations of the charges to be incurred for the fulfilment of the contractual warranty on products sold at year-end.

The "asset disposal reserve" was allocated in response to an obligation for future costs that the Japanese and English companies of the Group will incur in future years for the disposal, demolition, disassembly, and removal of a number of assets, and improvements to leased property, at the end of their useful lives or of the lease contract.

The "Other risks reserve" is allocated on the basis of expected costs to be incurred for risks related to legal disputes or transitional reorganisation agreements not yet settled. During the first six months of 2025, the fund existing at the end of 2024 was fully utilized as the amount for which the fund had been created was actually paid out and a new amount was allocated to cover risks for probable settlement agreements with employees.

16 – Trade payables

The table below shows the breakdown of trade payables at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Third parties Related companies	10.297 349	9.090 349
TOTAL TRADE PAYABLES	10.646	9.439

Trade payables at 30 June 2025 came to €10.65 million, an increase of €1.21 million compared to 31 December 2024. The effective increase comparing the values at constant exchange rates is €1.36 million. Trade payables are non-interest bearing and, on average, are settled 90-120 days after invoice date.

17 – Other current liabilities

The table below shows the breakdown of other current liabilities at 30 June 2025 and 31 December 2024:

(€'000)	at June 30, 2025	at December 31, 2024
Social contributions	555	741
Other	4.157	4.834
Advances from customers	1.389	789
Other tax liabilities	620	53
Accrued expanses	882	485
TOTAL OTHER CURRENT LIABILITIES	7.603	6.902

Other payables

(€'000)	at June 30, 2025	at December 31, 2024
Employees	1.276	661
Vacation pay	1.139	1.018
Directors	1.102	558
Statutory auditors	49	78
Other	591	2.519
TOTAL OTHER PAYABLES	4.157	4.834

The "other payables" item contains the amounts due to employees for compensation, holidays and leaves of absence accrued and not yet used at the reporting dates, as well as amounts due to directors and other miscellaneous payables.

The increase in the value relating to debts owed to directors is mainly due to the effect of recording the debt arising from the agreement signed on 5 June 2025 with the previous CEO, which will be settled in April 2026.

18 — Payables for business combinations

Payables for business combinations amounted to a total of €115 thousand (€115 thousand as at 31 December 2024) and are payables relating to the price to be paid to the former shareholders of the subsidiary InoNet Computer GmbH upon the occurrence of the conditions agreed in the purchase agreement in the form of shares of the parent company Eurotech S.p.A to be assigned within the next 12 months.

F – Breakdown of the main income statement items

With reference to the item Revenues, please refer to note D. Comments on the other main income statement items are provided below.

19 – Costs of raw and auxiliary materials and consumables

(€'000)	H1 2025	H1 2024
Purchases of raw materials, semi-finished and finished products	10.447	16.361
Changes in inventories of raw materials	681	( 1.227)
Change in inventories of semi-finished and finished products	( 233)	( 413)
TOTAL COST OF MATERIALS	10.895	14.721

Costs of raw and auxiliary materials and consumables show a decrease of 26.0% over the period under review, from €14.72 million in the first half of 2024 to €10.90 million in the first half of 2025. The decrease is related to the lower turnover achieved in the first half of 2024 compared to the previous period and is influenced by the different product mix. Consumption costs, decreased less than proportionally to the decline in revenues.

20 – Other operating costs net of cost adjustments

(€'000)	H1 2025	H1 2024
Service costs	6.020	6.924
- of which non recurrent costs	569	116
Rent and leases	351	474
Payroll	10.899	12.053
- of which non recurrent costs	568	182
Accruals and other costs	422	663
- of which non recurrent costs	99	111
Cost adjustments for in-house generation of non-current assets	( 1.518)	( 1.805)
Operating costs net of cost adjustments	16.174	18.309

The "operating costs" item shown in the table above, net of cost adjustments for internal increases, decrease from €18.31 million in the first half of 2024 to €16.17 million in the first half of 2025. The cost for the use of third-party assets mainly refers to short-term leases (with a duration of less than twelve months) and/or of modest value.

The Other provisions and other costs item includes an allocation to the doubtful debt provision for €27 thousand and other provisions for various types of risks totalling €111 thousand.

21 – Service costs

(€'000)	H1 2025	H1 2024
Industrial services	2.040	2.398
Commercial services	705	1.093
General and administrative costs	3.275	3.433
Total costs of services	6.020	6.924

In the period under review, service costs recorded a decrease of 13.1%, from €6.92 million to €6.02 million; the ratio to revenues decreased from 23.7% in the first half of 2024 to 28.0% in the first half of 2025.

22 – Payroll costs

(€'000)	H1 2025	H1 2024
Wages, salaries and Social Security contributions	10.360	11.379
Costs of defined benefit plans	311	264
Other costs	228	410
Total personnel expenses	10.899	12.053

In the first half of the year, payroll costs decreased from €12.05 million (€11.91 million at constant exchange rates) to €10.90 million, a decrease of 9.6% at historical exchange rates. Net of non-recurring costs of €568 thousand in the first half of 2025 and €182 thousand in the first half of 2024, the reduction compared to the first half of 2024 would amount to 13.0%. The item salaries includes €114 thousand for the pro-rata temporis portion of the cost relating to Performance Share Plans, as discussed in note 32 (as of 30 Jun 2024, the amount recorded at cost was €37 thousand).

As the table below illustrates, the number of Group employees decreased at the end of the last period, down from 361 units at 2024 year-end to 321 units at the end of the first half of 2025.

On the basis of the average value, the reduction compared to 31 December 2024 is in line with what is described above, equal to 26 units, while compared to 30 June 2024 there was a decrease of 39 units due to the reorganisation carried out in all geographical areas, but mainly in the United States and England.

	Average	at June 30,	Average	at December 31,
2025	2025	2024	2024	2024
EMPLOYEES
Management	5,0	5	5,0	5	5
Manager	5,0	5	5,5	5	6
Clerical workers	235,8	211	260,9	255	260
Line workers	100,9	100	101,0	96	107
TOTAL	346,7	321	372,4	361	378

23 – Cost adjustments for internally generated non-current assets

Adjustments to costs for internal increases as of 30 June 2025 amounted to €1.52 million (€1.81 million as of 30 June 2024) and related entirely to the capitalization of internal personnel costs of €673 thousand (€629 thousand as of 30 June 2024), material consumption costs of € 62 thousand (€67 thousand as of 30 June 2024) and service costs of € 783 thousand (€1.109 thousand as of 30 June 2024), incurred for some new product development projects in the field of "Modules and Platform" modules and systems, Edge computers, Edge AI and in the field of SW platforms for the Internet of Things.

24 – Other income

	H1 2024
101	1
202	278

303	279
	H1 2025

The main effect of the composition of other income derives primarily from refunds and the utilization of risk provisions, while in 2024 the main item concerned the utilization of risk provisions.

25 – Depreciation, amortisation and write-downs

(€'000)	H1 2025	H1 2024
Amortisation of intangile assets	1.533	1.339
Amortisation of property, plant and equipment	902	924
Write-down of fixed assets	-	85
Total amortisation and depreciation	2.435	2.348

Depreciation, amortisation and impairment increased from €2.35 million in the first half of 2024 to €2.43 million in the first half of 2025. This change is due mainly to the higher amortisation of development costs that began their amortisation process. In the first half of 2025, as a result of the impairment test, it not became necessary to partially write-down some development projects.

26 – Financial income and charges

The Group's financial management is summarised as follows:

€'000	H1 2025	H1 2024
Exchange-rate losses	481	783
Interest expenses	373	517
Interest expenses on lease liabilities	43	49
Other finance expenses	58	54
Financial charges	955	1.403
Exchange-rate gains	418	1.213
Interest income	3	2
Gain on derivatives	18	50
Other finance income	15	403
Financial incomes	454	1.668

Net financial management worsened in the first six months of 2025 compared to the first six months of 2024 by from a positive €265 thousand to a negative €501 thousand.

Exchange rate fluctuations positively affected financial operations by €63 thousand (resulting in a positive effect of €430 thousand in the first six months of 2024). Interest expenses had an impact of €413 thousand in 2025, an improvement due to the interest rates movements compared to the impact of €564 thousand in 2024. Other financial income and charges amounted to a total of €25 thousand (€399 thousand in the first six months of 2024). In 2024, the main amount of other financial income, €399 thousand, derived from the adjustment of the business combination debt incurred for the acquisition of InoNet Computer GmbH.

27 – Income tax for the period

Income taxes as of 30 June 2025 show a net positive effect of €655 thousand (deriving from the net effect of current tax expenses of €22 thousand, income tax credits relating to previous years of €36 thousand and deferred tax income of €641 thousand) compared to a positive effect of €62 thousand at 30 June 2024 (deriving from the net effect of current tax expenses of €145 thousand and deferred tax income of €207 thousand), recording a positive change of €593 thousand. Deferred tax assets have been recognized mainly in relation to the German and Japanese subsidiaries, which expect to report a positive pre-tax result at the end of the year.

(€'000)	H1 2025	H1 2024
IRES (Italian corporate income tax)	-	-
IRAP (Italian Regional business tax)	9	-
Foreign current income taxes	13	145
Total current income tax	22	145
Net (prepaid) deferred taxes: Italy	(27)	-
Net (prepaid) deferred taxes: Non-italian	(614)	(207)
Net (prepaid) deferred taxes	(641)	(207)
TOTAL INCOME TAXES	(655)	(62)

Deferred tax assets as at 30 June 2025 amounted to €2.17 million (31 December 2024: €1.65 million) and were accounted for in previous years on a portion of tax losses that can be carried forward in future years, as well as inventory write-down provision, the doubtful debt provision and other deductible costs of previous years. In particular, with reference to deferred tax assets on tax losses, these were recognised in previous years to the extent that it is probable that there will be adequate future tax profits against which the losses can be used. The directors' assessment confirmed in the half-year relates to the possibility of having taxable profits in the coming years to cover the deferred tax assets recorded.

The amount of deferred tax liabilities at 30 June 2025 was €3.01 million (€3.16 million at 31 December 2024) and refers principally to the tax effects on the "Purchase Price Allocation" for trademarks with indefinite and definite useful lives and on the recognition of profits on exchange rates not realised. The decrease is mainly because of the booking of deferred taxes in the period, in addition to the forex effect on values expressed in USD and JPY and relating to the PPA values.

28 – Statement of comprehensive income

The Statement of comprehensive income includes:

the fair value valuation of derivative financial instruments, gross of the unrecognised tax effect, negative for €18 thousand (negative for €31 thousand in the first half of 2024);
the change in the negative translation reserve amounting to €679 thousand (negative effect of €4,215 thousand in the first half of 2024) mainly due to the change in the Euro/US Dollar and Euro/Japanese Yen exchange rate compared to the end of the previous year;
the change in the negative exchange rate difference reserve of €2.728 thousand (positive for €522 thousand in the first half of 2024) on the recognition of exchange rate differences (Euro/US Dollar) compared to the end of the previous year on intercompany loans in foreign currencies that are part of a net investment in a foreign operation.

G – Other information

29 – Related-party transactions

The condensed consolidated half-year financial statements include the half-year financial statements of Eurotech S.p.A. and the half-year financial statements of subsidiaries previously shown in the Explanatory note C.

The following table shows relationships with related parties, not eliminated on consolidation.

RELATED PARTIES
	Purchases from related parties	Payables from related parties
Other related parties
Insulab S.r.l.	171	349
Total	171	349
Total with related parties	171	349
% impact on line item	1,0%	3,3%

Transactions with the company Interlogica S.r.l., of which Eurotech S.p.a. holds 10% of the share capital, and those with Insulab, of which Eurotech S.p.A. holds 40% of the share capital, relate to technical services mainly related to software activities and are carried out in market values.

30 – Financial risk management: objectives and criteria

The Group's financial instruments, other than derivative contracts, include bank loans in the various technical forms, leases, as well as short-term and on-demand bank deposits. These instruments are intended to finance Group operations. The Group has several other receivable and payable financial instruments at its disposal, such as trade receivables and payables arising from operations and liquidity. The Group had also transactions in derivatives, mainly swap or collar transactions on interest rates. The objective is to manage interest rate risks caused by Group transactions and by its sources of finance.

In accordance with Group policies, no speculative derivatives have been entered into.

The main risks generated by Group financial instruments are interest rate risks, exchange risks, liquidity risks and credit risks. The Board of Directors has reviewed and agreed to the policies for managing these risks, as summarised below.

Interest rate risk

The Group's exposure to the risk of interest rate fluctuations involves mainly medium-term obligations taken on by the Group, featuring variable interest rates linked to various indices. The Group signed interest rate swap contracts that provided for recognition of a variable rate against payment of a fixed rate. The contract type is designated to hedge changes in the interest rates in place on certain loans, which are the subject of the financial optimization. Group policy is to maintain between 30% and 60% of its loans at a fixed rate. At 30 June 2025, approximately 40.2% of the Group's loans were fixed-rate loans (in the first half of 2024 the percentage was approximately 21.6%). The loans in place at the Japanese company were signed at fixed rates since it is more advantageous than those at variable rates.

Exchange rate risk

In view of the significant investment transactions in the US, Japan and the UK, with substantial foreign currency cash flows from operations and financial management, the Group's financial statements could be significantly affected by changes in the USD/EUR, JP¥/EUR and GBP/EUR exchange rates. During the reporting period, no foreign exchange hedges were executed because of the fluctuating USD, GBP and JP¥ flows, particularly taking into account that the individual subsidiaries tend to operate in their respective functional currencies in their respective core markets.

About 49.7% of the sales of goods and services (30 June 2024: 47.6%) and 39.1% (30 June 2024: 38.1%) of the Group's purchase costs of goods and operating costs are denominated in a currency other than the functional currency used by the Parent Company to prepare these condensed consolidated half-year financial statements.

Product and component price risk

Although normally, the Group is not significantly exposed to price risks, over the past 24 months, due to the lack of availability of some electronic components, there have been significant increases in the price of these components that affect the total cost of the finished product. Regular activities are carried out to minimise this price increase and to discuss with the customer a possible mark-up or top-up of the sales price.

Credit risk

The Group trades only with known and reliable customers. The Group's policy is to check the creditworthiness grade of customers that request extended payment arrangements. In addition, the balance of receivables is monitored during the year so that the amount of non-performing positions is not significant. Only some receivables from key customers are insured.

Financial assets, recorded by trading date, are recognised in the financial statements net of write-downs calculated according to the risk of counterparty default, taking into account the information available on the customer's level of solvency and historical data.

There is no significant concentration of credit risk in the Group, even though there have been occasions over the last 3 years in which an individual customer generated more than 10% of total revenues. In 2025, only one customer generated revenues exceeding 10% (but not exceeding 20%) of total revenues for the half-year, whereas in 2024 this did not occur.

Credit risk concerning other Group financial assets, which include cash and cash equivalents and financial instruments, presents a maximum risk equal to the book value of these assets in the event of insolvency of the counterparty.

Liquidity risk

Liquidity risk is linked to the difficulty of obtaining financial resources on acceptable economic terms, which are necessary for current operations and therefore for meeting commitments. Reference is also made to the considerations already expressed in the paragraph relating to assessments regarding the adoption of the going concern assumption.

Cash flows, financing requirements, and the liquidity of Group companies, although monitored at Group level, are managed locally.

The difficult economic and financial market environment requires particular attention to liquidity risk management and, in this regard, particular attention is paid to actions aimed at generating financial resources through operational management and maintaining an adequate level of available liquidity in order to achieve an adequate financial balance.

The Group's objective is to maintain a balance between preserving funds and flexibility through the use of overdrafts, loans, leases, recourse factoring, and the possible raising of own funds on the market.

Credit lines are adequate and are used on average between 70% and 80% of the total. The Group's policy is that no more than 40% of loans should mature within 12 months. As of 30 June 2025, 21.6% of the Group's financial debt will mature within one year (first half of 2024: 50.0% based on the balances of the original plans, but following the financial optimization defined in September 2024, the percentage was determined to be 10.4%).

The risk that the Group may have difficulty meeting its legal commitments for financial liabilities is linked to the trend in turnover and any timely corrective actions, considering the current net financial position and the structure of working capital, and is moderate. The Group systematically monitors liquidity risk by analyzing specific reports, and the current economic situation and uncertainties that periodically characterize the financial markets require particular attention to be paid to liquidity risk management. For this reason, actions are taken to generate financial resources through operational management and to maintain an adequate level of available liquidity in order to ensure normal operations and address strategic decisions in the coming years. The Group therefore plans to meet the needs arising from maturing debts and planned investments through cash flows from operations, available liquidity, the raising of own funds on the market, and, if necessary, bank loans, the restructuring or refinancing of existing loans, and other forms of funding.

A single existing loan provides for the annual measurement of financial parameters (known as covenants), failure to comply with which could result in the Group forfeiting the benefit of the term, with the consequence of having to manage its cash flows – including in terms of forward-looking assessments – with different and earlier maturities than those provided for in the original loan amortization schedules. Although only a limited portion of the company's debt includes explicit provisions for compliance with financial covenants, contractual conditions are also prevalent in other loan agreements that borrow the forfeiture of the benefit of the term from the presence of such provisions in other loan agreements (so-called cross-default clauses). The group therefore monitors the measurement of financial covenants in the preparation of periodic financial reports, as well as in the monitoring of forecast data. Existing loan agreements do not provide for the measurement of financial covenants as of 30 June 2025. In view of the expected performance for 31 December 2025, the directors will initiate appropriate discussions with the lender to define solutions consistent with the expected cash flows in the update of the business plan, which is expected to be approved by the end of the financial year. In the meantime, coverage of prospective cash flows over a period of at least 12 months is also guaranteed thanks to the support provided by the reference shareholder, pending the implementation of the mandate granted by the shareholders' meeting to the directors to complete the capital increase (currently paid up for €2.5 million out of a maximum value of €20 million).

Measurement of fair value and relative hierarchical valuation levels

All financial instruments recognised at fair value are classified within the following three categories:

Level 1: market price
Level 2: valuation techniques (based on observable market data)
Level 3: valuation techniques (not based on observable market data)

The fair value of derivatives and of loans obtained has been calculated by discounting expected cash flows to present value applying prevailing interest rates. The fair value of other financial assets was calculated using market interest rates. As IFRS 13 requires, for each of the financial assets and liabilities the company analysed the effect of their measurement at fair value. The measurement process refers to Level 3 of the fair value hierarchy, except for trading in derivatives as described in greater detail hereunder, and revealed no considerable differences compared to the book values at 30 June 2024 and the respective comparison figures.

At 30 June 2025, the Group held the following financial instruments measured at fair value:

(€'000)	Notional value at June 30, 2025	Fair value at June 30, 2025 (debit)	Fair value at June 30, 2025 (credit)	Notional value at December 31, 2024	Fair value at December 31, 2024 (debit)	Fair value at December 31, 2024 (credit)
Cash flow hedge
Contracts Interest Rate Swap (IRS)	794	11	0	1.380	29	0

All the assets and liabilities measured at fair value at 30 June 2025 are classified in Level 2 of the fair value hierarchy. In addition, during the first half of 2025 there were no transfers from Level 1 to Level 2 or Level 3, or vice versa.

31 – Derivatives

Fair value

From the comparison between the book value and the fair value by category of all of the Group's financial instruments recognised in the financial statements, there were no significant differences, other than those highlighted, that require disclosure.

Interest rate risk

Interest on financial instruments classified as variable-rate instruments is recalculated periodically during the financial year. Interest on financial instruments classified as fixed-rate instruments is kept constant until the maturity date of the instruments concerned.

Hedging

Cash flow hedges

As at 30 June 2024, the Group holds two interest rate swap contracts (for total notional residual amounts of €1.96 million) designated as instruments to hedge interest rate risk.

Interest rate swap contracts	Due date	Fixed rate	Floating rate	Market value (€'000) (€'000)
Euro 168.734,56	31 July 2025	-0,20%	Euribor 3 months	1
Euro 625.000,00	30 September 2026	-0,14%	Euribor 3 months	10
TOTAL				11

Interest rate swap contract conditions were negotiated to coincide with the conditions of the underlying commitments (simple hedging transaction).

The accounting treatment of these financial instruments in the reporting period entailed a decrease in shareholders' equity of €18 thousand and reduced the cash flow hedge reserve recognised directly in shareholders' equity to a positive value of €11 thousand.

32 – Share-based payments

"EUROTECH S.p.A. Performance Share Plan 2021-2023" (hereinafter "PSP 2021")

On 11 June 2021, the Shareholders' Meeting of the Company approved adoption of a new incentive plan solely for individuals who have a directorship position and/or an employment contract and/or a freelance collaboration or consultancy agreement with Eurotech S.p.A. or one of its subsidiaries and who have key functions in the Group organisation chart; the plan is called "EUROTECH S.p.A. Performance Share Plan 2021-2023".

The PSP 2021 provides that the beneficiaries identified by the Company's Board of Directors be assigned the right (known as Unit) to receive Eurotech S.p.A. shares free of charge (up to a maximum of 500,000 ordinary shares) provided that the Performance Objectives have been achieved on the respective Assignment Date and that the Relationship with the Company or with one of the Subsidiaries has been constant. The Objectives defined annually by the Board of Directors must:

a) up to two objectives be linked to the economic-financial performance of the Group in the medium-long term;
b) an objective be linked to the trend of the market price of the Shares in the medium-long term (Total Shareholder Return).

The assigned Units are subject to a Vesting period of 3 (three) years during which the assigned Units may not vest, except in the case of termination in the event of Good Leaver (for example: dismissed by the company not for just cause, death, the Beneficiary's retirement and loss of the condition of Subsidiary by the employer company of the Beneficiary). Subsequently, a portion equal to 20% of the vested shares will be subject to a lockup period of 2 (two) years.

With reference to the second cycle of the plan in which 454,612 units were allocated in 2022, the time period considered concerns the years 2022-2024 and the objectives identified (with target levels other than minimum and maximum) independent from each other are calculated in relation to the following values:

i the sum of the Group's consolidated EBITDA over the 3 years;
ii the consolidated turnover of the Group at the end of the 2024 financial year;
iii the performance of the Total Shareholder Return of the Eurotech Shares compared to the Total Shareholder Return of the shares of the companies belonging to the FTSE Italia STAR index.

The first two objectives are "non-market based" components (with a weight of 60% of the total rights assigned) while the third objective is a "market base" component (with a weight of 40% of the total rights assigned) linked the measurement of Eurotech performance in terms of TST with reference to the FTSE Italia STAR index.

With reference to the third cycle of the plan in which 500,000 units were allocated in 2023, the time period considered concerns the years 2023-2025 and the objectives identified (with target levels other than minimum and maximum) independent from each other are:

i the sum of the Group's consolidated EBITDA over the 3 years;
ii the consolidated turnover of the Group at the end of the 2025 financial year;
iii the performance of the Total Shareholder Return of the Eurotech Shares compared to the Total Shareholder Return of the shares of the companies belonging to the FTSE Italia STAR index.

No units were assigned in 2025 or 2024.

	Year 2025			Year 2024
	No. Units granted	Value of the assign units	Value of the units for the period	No. Units granted	Value of the assign units	Value of the units for the period
		(€'000)	(€'000)		(€'000)	(€'000)
Perfornance Share Plan 2021
Nr. Unit at the begining of the period	500.000	1.136	-	954.612	2.577	157
Nr. Unit Granted during period	-	-	-	-	-	-
Nr. Unit Cancelled during period	-	-	-	( 454.612)	( 1.441)	( 393)
Nr. Unit assigned during period	-	-	-	-	-	-
Nr. Unit Outstanding at the end of the period	500.000	1.136	-	500.000	1.136	( 236)

At the closing date of the consolidated half-year financial statements, the company did not record any effect on the income statement, as it is highly likely that the economic targets set for 2023 will not be achieved. Since the start of the plan, the total amount recorded in the income statement amounts to €157 thousand.

"EUROTECH S.p.A. 2022 Incentive Plan" (hereinafter referred to as "IP 2022")

On 28 April 2022, the Shareholders' Meeting of the Company approved adoption of a new incentive plan solely for individuals who have a directorship and/or a permanent employment relationship with Eurotech S.p.A. or one of its Subsidiaries; the plan is called "EUROTECH S.p.A. 2022 Incentive Plan".

The IP 2022 provides that the beneficiaries identified by the Company's Board of Directors be assigned the right (known as Unit) to receive Eurotech S.p.A. shares free of charge provided that on the Assignment Date they maintain a relationship with the Company or one of its subsidiaries. The Units assigned are subject to a retention period lasting 3 (three) years starting from the respective Assignment date; during the Retention Period, the assigned Units cannot accrue unless the contract is terminated as a good leaver (for example: dismissed by the company not for just cause, death, the Beneficiary's retirement and loss of the condition of Subsidiary by the employer company of the Beneficiary). Subsequently, a portion equal to 20% of the vested shares will be subject to a lock-up period of 1 (one) year.

During 2025, no units were assigned, but 17,000 units were canceled. At the end of the half-year financial statements, the company recorded a cost of €78 thousand in the income statement, with the corresponding amount recognized in shareholders' equity. Since the beginning of the plan, the total amount recorded in the income statement amounts to €550 thousand.

	Year 2025			Year 2024
	No. Units granted	Value of the assign units	Value of the units for the period	No. Units granted	Value of the assign units	Value of the units for the period
		(€'000)	(€'000)		(€'000)	(€'000)
Perfornance Share Plan 2022
Nr. Unit at the begining of the period	261.000	767	78	218.000	684	195
Nr. Unit Granted during period	-	-	-	58.000	131	42
Nr. Unit Cancelled during period	( 17.000)	( 41)	-	( 15.000)	( 48)	-
Nr. Unit assigned during period	-	-	-	-	-	-
Nr. Unit Outstanding at the end of the period	244.000	726	78	261.000	767	237

EUROTECH S.p.A. 2024-2026 Performance Share Plan (hereinafter "PPS 2024")

On 29 April 2024, the Company's Shareholders' Meeting approved the adoption of an incentive plan reserved for individuals who have an administrative and/or permanent employment relationship with Eurotech S.p.A. or one of its Subsidiaries. The plan is called the "2024-2026 EUROTECH S.p.A. Performance Share Plan."

The PPS 2024 provides that the beneficiaries, as identified by the Company's Board of Directors, will be assigned the right (known as a "Unit") to receive Eurotech S.p.A. shares free of charge (up to a maximum of 500,000 ordinary shares for each of the three Plan periods) provided that the Performance Targets have been achieved on the respective Allocation Date and that the relationship with the Company or one of its Subsidiaries has been continuous. The Targets defined annually by the Board of Directors must be:

a) up to two targets must be linked to the Group's medium- to long-term economic and financial performance; b) one target must be linked to the medium- to long-term performance of the market price of the Shares (Total Shareholder Return).

The Units assigned are subject to a vesting period of 3 (three) years during which the Units assigned cannot mature, except in the event of termination of employment in the case of a Good Leaver (for example: dismissal by the company without just cause, death, retirement of the Beneficiary, loss of subsidiary status by the Beneficiary's employer). Subsequently, 20% of the vested shares will be subject to a lock-up period of 2 (two) years.

With reference to the first cycle of the plan, which saw the allocation of 329,000 units in 2025, the period considered covers the financial years 2024-2026 and the identified objectives (with target levels other than minimum and maximum) independent of each other, are calculated in relation to the following figures:

i the sum of the Group's consolidated EBITDA over the three years;

ii the Group's consolidated turnover at the end of the 2026 financial year;

iii the performance of the Total Shareholder Return of Eurotech shares compared to the Total Shareholder Return of the shares of companies belonging to the FTSE Italia STAR index.

The first two targets are "non-market-based" components (with a weighting of 60% of the total rights assigned), while the third target is a "market-based" component (with a weighting of 40% of the total rights assigned) linked to the measurement of Eurotech's performance in terms of TST relative to the FTSE Italia STAR index.

During 2025, in addition to the allocation, some units were also canceled.

	Year 2025
	No. Units granted	Value of the assign units	Value of the units for the period
		(€'000)	(€'000)
Perfornance Share Plan 2022
Nr. Unit at the begining of the period	-	-	-
Nr. Unit Granted during period	449.000	336	21
Nr. Unit Cancelled during period	( 120.000)	( 90)	-
Nr. Unit assigned during period	-	-	-
Nr. Unit Outstanding at the end of the period	329.000	246	21

At the closing date of the consolidated half-year financial statements, the company recorded a cost in the income statement of €21 thousand, the counterpart of which was recorded in shareholders' equity. Since the beginning of the plan, the total amount recorded in the income statement amounts to €21 thousand.

EUROTECH S.p.A. 2025-2027 Retention Plan (hereinafter "PRE 2025-2027")

On 29 April 2024, the Company's Shareholders' Meeting approved the adoption of an incentive plan reserved for individuals who have an administrative and/or permanent employment relationship with Eurotech S.p.A. or one of its subsidiaries. The plan is called the "EUROTECH S.p.A. 2025-2027 Retention Plan."

The 2025-2027 PRE provides that the beneficiaries, as identified by the Company's Board of Directors, are assigned the right (known as a Unit) to receive Eurotech S.p.A. shares free of charge, provided that on the respective Allocation Date they have an existing relationship with the Company or one of its subsidiaries. The Units assigned are subject to a retention period of three (3) years starting from the respective Assignment Date; during the Retention Period, the Units assigned cannot mature, except in the case of termination of employment in the event of a Good Leaver (for example: dismissal by the company without just cause, death, retirement of the Beneficiary, loss of Subsidiary status by the company employing the Beneficiary). Subsequently, 20% of the vested shares will be subject to a lock-up period of one (1) year.

During 2025, 260,579 units were assigned. At the end of the half-year financial statements, the company recorded a cost of €15 thousand in the income statement, with the corresponding amount recognized in shareholders' equity. Since the start of the plan, the total amount recorded in the income statement amounts to €15 thousand.

	Year 2025
	No. Units granted	Value of the assign units	Value of the units for the period
		(€'000)	(€'000)
Perfornance Share Plan 2022
Nr. Unit at the begining of the period	-	-	-
Nr. Unit Granted during period	260.579	185	15
Nr. Unit Cancelled during period	-	-	-
Nr. Unit assigned during period	-	-	-
Nr. Unit Outstanding at the end of the period	260.579	185	15

33 – Non-recurring costs and revenues

Several Group companies during the first half of 2025, as was already the case in the first half of 2024 incurred costs that they considered to be non-recurring, compared to ordinary operations. In particular, these costs refer to personnel costs and provisions for risks related to the costs incurred and to be incurred with reference to the reorganisation of the local workforce and costs for services also incurred in support of the activities carried out for this reorganisation or of a non-recurring nature.

(€'000)	H1 2025	H1 2024
Service costs	569	116
Payroll	568	182
Accruals and other costs	99	111
Non-recurrent costs	1.236	409

34 – Events after the reporting period

As already reported in the disclosure on business continuity and liquidity risk, the directors have recently updated the forecast of expected cash flows over a period of at least 12 months, taking into account the lower performance achieved in the first few months of the year, but also factoring in the new contracts acquired and the measures to rationalize structural costs already completed. On the basis of the cash requirements identified by management, which will be further updated with the approval of the group's new business plan expected towards the end of the financial year, discussions continued with the reference shareholder Emera S.r.l., which has already provided financial support for the group's cash requirements during the half-year. The reference shareholder has therefore confirmed its willingness to support the Group's cash requirements up to an amount of €6.5 million, in addition to the payments already made towards a future capital increase.

The directors, who were authorized by the shareholders' meeting to carry out a capital increase, even in several tranches, up to a maximum of €20 million (to date, €2.5 million has been carried out in conversion of future capital increase payments already made by Emera S.r.l.), have convened a shareholders' meeting for October 15, 2025, in order to submit for approval by the shareholders the amendment to the Articles of Association regarding the thresholds for the mandatory public tender offer (PTO), currently set at 30% of the share capital, with a request to raise this ratio to the maximum of 40% provided for by the applicable regulations. No other significant events occurred after the end of the half-year and up to the date of approval.

35 – Seasonality of business activities

There are no significant seasonal trends in the sector in which the Group operates, even though historically the Group has a higher concentration of revenues in the second half of the year. These higher sales are mainly due to the scheduling of purchases by customers.

Amaro, 11 September 2025

On behalf of the Board of Directors The Chief Executive Officer Dr. Massimo Milan

Certification of the Condensed Consolidated Half-Year Financial Statements

Pursuant to Art. 154-bis, Paragraph 5 – Part IV, Title III, Chapter II, Section V-bis of Italian Legislative Decree no. 58 of 24 February 1998: "Consolidated Law on Finance, pursuant to Arts. 8 and 21 of Italian Law no. 52 of 6 February 1996".

1) We the undersigned, Dr. Massimo Milan, Chief Executive Officer, and Dr. Sandro Barazza, Financial Reporting Manager, for Eurotech S.p.A., pursuant to Art. 154-bis, paragraphs 3 and 4 of Italian Legislative Decree no. 58 of 24 February 1998 and subsequent amendments, hereby attest to:
- the adequacy in relation to the characteristics of the company and
- the effective application

of the administrative and accounting procedures for the preparation of the condensed consolidated halfyear financial statements for the period from 1 January 2025 to 30 June 2025.

2) Valuation of the adequacy of the administrative and accounting procedures for the formation of the consolidated half-year financial statements at 30 June 2025 is based on a model Eurotech defined in line with the CoSO framework (document in the CoSO Report) and also takes into account the document "Internal Control over Financial Reporting – Guidance for Smaller Public Companies", both prepared by the Committee of Sponsoring Organisations of the Treadway Commission that represent a generally accepted reference framework at international level. In this regard, no significant aspects emerged.
3) Moreover, we hereby attest that the condensed consolidated half-year financial statements:
- a) correspond to the results in the corporate books and accounting records;
- b) were prepared in compliance with the International Accounting Standards (IFRSs) recognised in the European Union pursuant to Regulation (EC) 1606/2002 of the European Parliament and the Council, dated 19 July 2002;
- c) provide a fair and true representation of the assets, liabilities, financial position and profit or loss of companies included in the consolidation.
4) The Interim Management Report contains references to the significant events that occurred in the first six months of the year and their impact on the condensed consolidated half-year financial statements, together with a description of the main risks and uncertainties for the remaining six months of the year, as well as information on relevant transactions with related parties.

Amaro (Udine), 11 September 2025

Eurotech S.p.A.

signed Massimo Milan signed Sandro Barazza

Chief Executive Officer Financial Reporting Manager

AI Terminal

Eurotech

4469_ir_2025-09-12_b7f05f23-1367-48b4-8cc1-c31e91b20818.pdf