Share capital €178,464,000 fully paid up Registered office: Piazza Vilfredo Pareto, 3 – 46100 Mantova Mantova Register of Companies – Tax code and VAT registration number 07918540019

Half-Yearly Financial Report of the Immsi Group at 30 June 2024

This Half-Yearly Financial Report at 30 June 2024 has been translated into English solely for the convenience of the international reader. In the event of conflict or inconsistency between the terms used in the Italian version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the sole official document.

COMPANY BOARDS………………………………………………………….……	page	4
HALF-YEARLY FINANCIAL REPORT OF THE IMMSI GROUP.…………………….	page	7
IMMSI GROUP
- Condensed Interim Financial Statements as at 30 June 2024…………………………	page	37
- Notes to the Consolidated Financial Statements as at 30 June 2024	page	43
- List of companies included in the consolidated financial statements and investments	page	97
CERTIFICATION OF THE CONDENSED INTERIM FINANCIAL STATEMENTS
PURSUANT TO ARTICLE 154-BIS of LEGISLATIVE DECREE 58/98………………	page	100
AUDITORS' REPORT…………………………………………………………	page	101

This document was approved by the Board of Directors of Immsi S.p.A. on 5 September 2024 and is available for the public to consult at the Registered Office of the Company, in the centralised storage system and on the Issuer's website www.immsi.it (section: "Investors/Financial statements and reports/2024") in accordance with law.

COMPANY BOARDS

The Board of Directors and the Audit Committee of Immsi S.p.A. in office at the date of presentation of this report will remain in office until the date the Shareholders' Meeting is convened to approve the financial statements for the year ending 31 December 2026.

____________________________________________________________________________________________________

BOARD OF DIRECTORS

Matteo Colaninno	Chairman
Daniele Discepolo	Deputy Chairman
Michele Colaninno	Chief Executive Officer
Giovanni Barbara	Director
Fabrizio Quarta	Director
Gianpiero Succi	Director
Ruggero Magnoni	Director
Giulia Molteni	Director
Anna Lucia Muserra	Director
Rosanna Ricci	Director
Alessandra Simonotto	Director
Patrizia De Pasquale	Director

____________________________________________________________________________________________________

AUDIT COMMITTEE

Giovanni Barbara Chairman Anna Lucia Muserra Daniele Discepolo

INDEPENDENT AUDITORS

Deloitte & Touche S.p.A. 2021 - 2029

GENERAL MANAGER

Michele Colaninno

In accordance with the principles of Corporate Governance recommended by the Corporate Governance Code (January 2020 version), and pursuant to Legislative Decree 231/01, the Board of Directors has established the following bodies:

~ 4 ~ Immsi Group Company Boards

RISK AND SUSTAINABILITY COMMITTEE

____________________________________________________________________________________________________ Daniele Discepolo Chairman Anna Lucia Muserra Giovanni Barbara

RELATED-PARTY COMMITTEE

Rosanna Ricci Chairman Daniele Discepolo Patrizia De Pasquale

APPOINTMENT PROPOSAL AND REMUNERATION COMMITTEE

____________________________________________________________________________________________________ Daniele Discepolo Chairman Giovanni Barbara Rosanna Ricci

COMPLIANCE COMMITTEE

Marco Reboa Chairman Giovanni Barbara Maurizio Strozzi

WHISTLEBLOWING COMMITTEE

____________________________________________________________________________________________________ Marco Reboa Chairman Giovanni Barbara Maurizio Strozzi

LEAD INDEPENDENT DIRECTOR

____________________________________________________________________________________________________ Daniele Discepolo

CHIEF EXECUTIVE OFFICER

____________________________________________________________________________________________________ Michele Colaninno

INTERNAL AUDIT MANAGER

____________________________________________________________________________________________________ Maurizio Strozzi

MANAGER IN CHARGE OF PREPARING THE COMPANY ACCOUNTS

____________________________________________________________________________________________________ Stefano Tenucci

INVESTOR RELATOR

____________________________________________________________________________________________________ Stefano Tenucci

All information on powers reserved for the Board of Directors, the authority granted to the Chairman and CEO, as well as functions of various Committees of the Board of Directors, is available in the Governance section of the Issuer's website www.immsi.it.

~ 5 ~ Immsi Group Company Boards

____________________________________________________________________________________________________

The Shareholders' Meeting of Immsi S.p.A. held on 29 April 2024 approved:

• the proposals for amendments to the Articles of Association relating to the adoption of the so-called one-tier administration and control model, which will have a Board of Directors responsible for the management function, and an Audit Committee, set up within the Board itself, with control functions;

• further amendments to the Articles of Association, also in line with the most recent practices and guidelines, for which reference should be made to the relevant explanatory report (see the Issuer's website www.immsi.it, Governance section).

The adoption of the one-tier system is instrumental in further improving the profitable and timely synergy between the management and control functions, to the benefit of the Company and all its stakeholders, and confirms, once again, Immsi's constant focus on complying with international best practices in terms of governance, as this model is the most widely used by issuers listed on European and international stock markets.

Half-Yearly Financial Report of the Immsi Group

The Half-Yearly Financial Report for the six months to 30 June 2024 was prepared in accordance with article 154-ter of Legislative Decree 58/1998 as amended, and the Consob Regulation on Issuers.

This Report was prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union, and according to IAS 34 – Interim Financial Reporting, applying the same accounting standards as those adopted when preparing the Consolidated Financial Statements as at 31 December 2023 of the Immsi Group – the "Group" – (to which reference is made for further details), excluding the indications in the Accounting standards and measurement criteria section, if applicable. The information in this Report is not therefore similar to the information of complete financial statements prepared in accordance with IAS 1.

The Group also considered IASB amendments and interpretations applicable as from 1 January 2024 (for more details, reference is made to the Notes to this document), and the interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"), formerly the Standing Interpretations Committee ("SIC").

Information on operations

The Immsi Group closed the first half of 2024 consolidating very positive margin levels, although the slowdown in some markets (particularly Asia and America) led to a drop in revenues. Net sales amounted to €1,013.8 million, down 14.3% compared to the same period of 2023, EBIT at 30 June 2024 was down 12.4%, but as a percentage of turnover amounted to 9.4%, an improvement of 0.2% compared to the same period of the previous year (9.2% at 30 June 2024); Net profit, including the share of non-controlling interests, amounted to €32.2 million in the first six months of 2024, compared to a profit of €47.1 million at 30 June 2023.

Net financial debt at 30 June 2024 amounted to €817.8 million, a decrease of approximately €9.6 million compared to 31 December 2023 (€827.4 million).

Earnings for the period report different trends with reference to the sectors comprising the Group, based on the different business trends of the period in question.

For a clearer interpretation, the following is reported on a preliminary basis:

The "property and holding sector" consolidated the financial position and performance of Immsi S.p.A., Immsi Audit S.c.a r.l., ISM Investimenti S.p.A., Is Molas S.p.A., Apuliae S.r.l. in liquidation and RCN Finanziaria S.p.A., as well as intergroup eliminations;
the "industrial sector" includes the companies owned by the Piaggio group, while
the "marine sector" includes Intermarine S.p.A.

Some of the main summary data of the Immsi Group, divided by segment of activity, are reported below.

Immsi Group as at 30 June 2024

	Property and holding	as a %	Industrial sector	as a %	Marine sector	as a %	Immsi Group	as a %
In thousands of Euros	sector
Net revenues	1,115		990,298		22,356		1,013,769
Operating income before depreciation and amortisation (EBITDA)	-3,985	n/m	173,772	17.5%	-3,617	-16.2%	166,170	16.4%
Operating income (EBIT)	-4,818	n/m	104,094	10.5%	-4,173	-18.7%	95,103	9.4%
Profit before tax	-15,618	n/m	77,776	7.9%	-6,949	-31.1%	55,209	5.4%
Profit (loss) for the period including minority interests	-14,582	n/m	52,110	5.3%	-5,339	-23.9%	32,189	3.2%
Group earnings for the period (which may be consolidated)	-11,025	n/m	26,382	2.7%	-3,871	-17.3%	11,486	1.1%
Net debt	-324,286		-407,964		-85,519		-817,769
Personnel (number)	99		6,206		215		6,520

The same table referring to the first half of the previous year is presented below. A comparison between the two periods is made in the specific comment presented below regarding each business sector:

Immsi Group as at 30 June 2023

	Property and holding	as a %	Industrial sector	as a %	Marine sector	as a %	Immsi Group	as a %
In thousands of Euros	sector
Net revenues (*)	1,548		1,167,176		13,843		1,182,567
Operating income before depreciation and amortisation (EBITDA)	-3,916	n/m	191,158	16.4%	-3,831	-27.7%	183,411	15.5%
Operating income (EBIT)	-4,544	n/m	117,580	10.1%	-4,531	-32.7%	108,505	9.2%
Profit before tax	-13,103	n/m	98,163	8.4%	-6,956	-50.2%	78,104	6.6%
Profit (loss) for the period including minority interests	-12,376	n/m	64,788	5.6%	-5,339	-38.6%	47,073	4.0%
Group earnings for the period (which may be consolidated)	-9,326	n/m	32,766	2.8%	-3,871	-28.0%	19,568	1.7%
Net debt	-314,276		-384,428		-68,537		-767,241
Personnel (number)	81		6,441		214		6,736

(*) with reference to the industrial sector, following the contractual changes made from 2024 to the sell-out promotions for the Indian market, the costs of the aforementioned promotions, previously allocated to the provision of services, are now allocated as a deduction of revenues. Although the value is to be considered negligible, €4,872 thousand was reclassified from cost of services to lower revenue in the first half of 2023, in order to allow for a better comparability with 2024 figures.

It should be noted that the data given in the preceding tables refer to results that can be consolidated, that is, in particular, net of the intergroup revenues and costs and the dividends from subsidiaries.

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Alternative non-GAAP performance indicators

To facilitate understanding of the Immsi Group's economic and financial performance, in accordance with ESMA recommendations on alternative performance measures (ESMA/2015/1415), this Report contains some indicators which, although not set out under IFRS ("Non-GAAP Measures"), derive from IFRS financial measures.

These indicators are presented to allow a better assessment of the Group's operating performance and consist of those monitored by management, but should not be considered as an alternative to IFRS measures. They are identical to those contained in the Annual Report and Financial Statements as at 31 December 2023 and in the periodical quarterly reports of the Immsi Group.

It should also be noted that the methods for calculating these measures might not be the same as those adopted by other operators, as they are not specifically governed by the reference accounting standards and therefore might not be sufficiently comparable.

In particular, the following alternative performance indicators have been used:

EBITDA: defined as operating income before amortisation/depreciation and impairment costs of intangible assets and plant, property and equipment, as reported in the consolidated income statement;
Net debt (or net financial position): equal to financial liabilities (current and non-current) including trade payables and other non-current payables that include a significant component of implicit (or explicit) finance, minus cash and cash equivalents, and current financial receivables (ESMA Guidance 2021/32-382-1138). On the other hand, as determined by the Immsi Group, net financial debt does not consider derivative financial instruments designated as hedging and non-hedging, fair value adjustments of the related hedged items and related accruals, fair value adjustments of financial liabilities, payables and accruals for interest accrued on bank loans, interest accrued on loans to third party shareholders.

A detailed table highlighting the items that contribute to the indicator is included in this Report.

30.06.2024 as a % 30.06.2023 as a % Change as a % In thousands of Euros Net revenues 1,115 1,548 -433 -28.0% Operating income before depreciation and amortisation (EBITDA) -3,985 n/m -3,916 n/m -69 -1.8% Operating income (EBIT) -4,818 n/m -4,544 n/m -274 -6.0% Profit before tax -15,618 n/m -13,103 n/m -2,515 -19.2% Profit (loss) for the period including minority interests -14,582 n/m -12,376 n/m -2,206 -17.8% Group earnings for the period (which may be consolidated) -11,025 n/m -9,326 n/m -1,699 -18.2% Net debt -324,286 -314,276 -10,010 -3.2% Personnel (number) 99 81 18 22.2%

The property and holding sector

The "property and holding sector" consolidated the financial position and performance of Immsi S.p.A., Immsi Audit S.c.a r.l., ISM Investimenti S.p.A., Is Molas S.p.A., Apuliae S.r.l. in liquidation and RCN Finanziaria S.p.A.

Overall, the property and holding sector reported a net loss for consolidation purposes in the first half of 2024 of approximately €11 million, which was worse than the loss recorded in the same period of the previous year and mainly related to the increase in the cost of debt.

Net debt of the sector was negative at €324.3 million, up on the figure of -€314.3 million at 30 June 2023 and -€314.8 million at 31 December 2023.

The Parent Company Immsi S.p.A. recorded a net profit for the period of approximately €11.8 million, compared to a profit of €15.9 million at 30 June 2023; the decrease is mainly due to lower dividends received from the subsidiary Piaggio & C. S.p.A. (-€3.6 million) and higher net financial borrowing costs incurred (+€0.6 million).

Net debt, as defined by the Company, including intergroup eliminations, at 30 June 2024 WAS €10.9 million negative, compared to €11.9 million negative at 31 December 2023, influenced by inflows of €9.5 million in March 2024, for the sale of all Unicredit shares held in the portfolio, partially offset by the payment of financial borrowing costs for the period.

The shareholders' equity of the Parent Company Immsi S.p.A. as at 30 June 2024 amounted to €362.3 million, up on the year-end figure of €356.4 million. The change was mainly due to the result for the period offset by the dividend distribution and the positive variation compared to 31 December 2023 in the fair value of Unicredit shares sold in the first half of 2024, recognised in the relevant equity reserve.

Lastly, it should be noted that in preparing this Interim Report as at 30 June 2024, the Parent Company did not carry out any specific impairment analyses on the carrying amount of investments held in fully consolidated companies as these investments and any changes arising from the related impairment tests would have been fully eliminated on consolidation.

Concerning the real estate initiatives of the subsidiary Is Molas S.p.A.during the second quarter of 2023 and the first half of 2024, the Company completed important works for extraordinary maintenance, energy efficiency and the renovation of its existing tourist-hotel facilities. The

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renovation works impacted the remaining rooms that were not subject to works in the previous year and were completed, according to schedule, with the opening of the Hotel on 1 June 2024. The investment will make it possible to offer a product that is more effective and more attractive by the standards of the target customers identified. The company continued business activities to identify possible buyers, also international, and it decided to allow the mock-up villas to be rented out again in 2024 (as in previous years) in order to allow end customers – including any investors – to better understand the product and the associated services offered (e.g. wellness and home catering), so as to be able to assess their profitability. In this regard, it should be noted that during the first quarter of 2024, an intermediary of high standing in the Luxury sector was exclusively appointed for the sale and short rental of the villas that have been built so far. The subsidiary is continuing activities to sell the "Le Ginestre" property complex, consisting of 50 residential units and several parking spaces, with the aim of rationalising its property portfolio. As at 30 June 2024, a total of 37 units had ben sold.

Net revenues for the six months ended 30 June 2024 amounted to €1,115 thousand, a decrease of €434 thousand compared to the corresponding amount recognised in the first half of 2023. The decrease is mainly due to fewer sales of real estate units at the 'Le Ginestre' property complex in the first half of 2024 (4 units sold in the first six months of 2024 compared to 11 units sold in the corresponding period of the previous year).

In terms of margins, Is Molas S.p.A. recorded an operating loss of approximately €1.9 million and a net loss for consolidation purposes of €3.2 million, the latter result worsening compared to the corresponding period of 2023 mainly due to the increase in net financial borrowing costs.

The net debt of Is Molas S.p.A. came to €93.5 million, with a cash absorption of approximately €5.2 million, compared to 31 December 2023 (when it was equal to €88.3 million) mainly due to the cash flow absorbed by investments for hotel and tourist facility renovation works.

With reference to the subsidiary Apuliae S.r.l., in liquidation, there are no further updates since the Report of Directors and Financial Statements of the Immsi Group at 31 December 2023, to which reference is made. As at 30 June 2024, the company's income statement showed a loss of €64 thousand (in line with the figure for the same period in 2023) and net debt was virtually unchanged from the figure as at 31 December 2023 and negative by approximately €1 million.

The other major companies falling within the property and holding sector also include RCN Finanziaria S.p.A. and ISM Investimenti S.p.A.. With reference to main financial data of the company:

• RCN Finanziaria S.p.A., in which Immsi S.p.A. holds 72.51% and Intermarine S.p.A. is the sole member, recorded a net loss for consolidation purposes for the Immsi Group as at 30 June 2024 of approximately €4.3 million (deteriorating by approximately €0.5 million compared to 30 June 2023 mainly due to the higher incidence of borrowing costs), and a net financial debt of €138 million as at 30 June 2024, compared to €132.7 million as at 31 December 2023.

During March 2024, the parent company Immsi S.p.A., with the aim of recapitalising RCN Finanziaria S.p.A., waived financial receivables due from the subsidiary for a nominal value of €10.5 million, allocating them to a special reserve for the future capital increase of Immsi.

• ISM Investimenti S.p.A., owned by Immsi S.p.A. with a 72.64% stake and parent of Is Molas S.p.A. with a 92.59% stake, recorded a net loss for consolidation purposes for the Immsi Group of approximately €0.9 million in the first half of 2024, down by approximately €0.1 million compared to the figure as at 30 June 2023. Net financial debt as at 30 June 2024 was equal to €80.8 million, compared to €81 million as at 31 December 2023.

During March 2024, the parent company Immsi S.p.A., with the aim of recapitalising ISM Investimenti S.p.A., waived financial receivables due from the subsidiary for a nominal value of €8.5 million, allocating them to a special reserve for the future capital increase of Immsi.

Industrial sector: Piaggio group

In thousands of Euros	30.06.2024	as a %	30.06.2023	as a %	Change	as a %
Net revenues (*)	990,298		1,167,176		-176,878	-15.2%
Operating income before depreciation and amortisation (EBITDA)	173,772	17.5%	191,158	16.4%	-17,386	-9.1%
Operating income (EBIT)	104,094	10.5%	117,580	10.1%	-13,486	-11.5%
Profit before tax	77,776	7.9%	98,163	8.4%	-20,387	-20.8%
Profit (loss) for the period including minority interests	52,110	5.3%	64,788	5.6%	-12,678	-19.6%
Group earnings for the period (which may be consolidated)	26,382	2.7%	32,766	2.8%	-6,383	-19.5%
Net debt	-407,964		-384,428		-23,536	-6.1%
Personnel (number)	6,206		6,441		-235	-3.6%

In terms of consolidated turnover, the Piaggio group ended the first half of 2024 with net revenues down on the same period of 2023 (-15.2%). It should be recalled that in the first half of 2023, the Piaggio group recorded its best results in terms of turnover since its listing.

The decrease affected the EMEA and Americas markets (-12.1%) and Asia Pacific (-38.9%; -36.7% at constant exchange rates) while the Indian market reported a growth trend (+3.9%; +5.2% at constant exchange rates).

As regards product type, the decline concerned Two-Wheeler vehicles to a greater extent (-17.5%) than Commercial Vehicles (-4.8%). As a result, the percentage of Commercial Vehicles accounting for overall turnover went up from 18.2% in the first half of 2023 to the current figure of 20.4%; vice versa, the percentage of Two-Wheeler vehicles fell from 81.8% in the first six months of 2023 to the current figure of 79.6%.

During the first half of 2024, the Piaggio Group sold 270,100 vehicles worldwide, recording a decrease of 16.8% compared to the first six months of the previous year, when 324,600 vehicles were sold. Only the Indian market showed a positive trend.

Regarding product type, sales of Commercial Vehicles went up (+3.1%), while sales of Two-Wheeler Vehicles declined (-21.0%).

Consolidated EBITDA decreased and amounted to €173.8 million as at 30 June 2024 (€191.2 million in the first half of 2023). In relation to turnover, EBITDA grew and was equal to 17.5% (16.4% in the first half of 2023).

Operating income (EBIT) amounted to €104.1 million as at 30 June 2024, also down on the first six months of 2023; in relation to turnover, EBIT was equal to 10.5% (10.1% in the first half of 2023).

Financing activities showed a net expense of €26.3 million (€19.4 million as at 30 June 2023). The deterioration is mainly due to the rise in interest rates on debt, mainly related to the new bond issue in October 2023, exacerbated by the negative impact of currency management.

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Income taxes for the period are estimated to be €25.7 million, equivalent to 33% of profit before tax.

Net profit stood at €52.1 million (5.3% of turnover), down on the figure for the same period of the previous year which amounted to €64.8 million (5.6% of turnover).

Net financial debt as at 30 June 2024 was equal to €408 million, compared to €434 million as at 31 December 2023. The decrease of approximately €26 million is related to the positive trend in operations.

Net financial debt increased by approximately €23.6 million compared to 30 June 2023.

The market

Two-wheeler business

In the first six months of 2024, the Piaggio Group sold a total of 211,200 two-wheeler vehicles worldwide, accounting for a net turnover equal to approximately €788 million, including spare parts and accessories (€80.9 million, -3.9%).

Overall, volumes decreased by 21.0% and turnover by 17.5% compared to 30 June 2023.

Specifically, in the first half of 2024 all markets recorded negative trends, compared to the corresponding period of the previous year, with the exception of India (-3.0% volumes); +10.4% turnover; +11.8% at constant exchange rates).

Commercial Vehicles business

During the first six months of 2024, the Commercial vehicles business generated a turnover of approximately €202.3 million, down by 4.8% compared to the same period of the previous year.

The decline recorded by the EMEA & Americas area (-19.9%) was only partially offset by the growth in India (+2.9%); +4.1% at constant exchange rates).

EMEA markets, on the other hand, reported contrasting trends. The increases in turnover in the Americas (+39.5%) were more than cancelled out in absolute terms by the decrease in the Emea area (-24.5%).

The Indian affiliate Piaggio Vehicles Private Limited (PVPL) sold 47,762 three-wheelers on the Indian market (46,659 in the first six months of 2023). Sales of three-wheeler vehicles with electric engines decreased, from 10,504 units in the first half of 2023 to 9,393 units in the current half-year.

As at 30 June 2024, the Indian affiliate had exported 4,447 three-wheeler vehicles (3,809 in the first half of 2023).

The Marine sector: Intermarine

In thousands of Euros	30.06.2024	as a %	30.06.2023	as a %	Change	as a %
Net revenues	22,356		13,843		8,513	61.5%
Operating income before depreciation and amortisation (EBITDA)	-3,617	-16.2%	-3,831	-27.7%	214	5.6%
Operating income (EBIT)	-4,173	-18.7%	-4,531	-32.7%	358	7.9%
Profit before tax	-6,949	-31.1%	-6,956	-50.2%	7	0.1%
Profit (loss) for the period including minority interests	-5,339	-23.9%	-5,339	-38.6%	0	0.0%
Group earnings for the period (which may be consolidated)	-3,871	-17.3%	-3,871	-28.0%	0	0.0%
Net debt	-85,519		-68,537		-16,982	-24.8%
Personnel (number)	215		214		1	0.5%

With reference to the economic data of the marine sector, the first half of 2023 saw an increase in net revenues (composed of turnover and changes in contract work in progress) compared with the same period of the previous year; this figure stood at €22.4 million, compared to €13.8 million in the first half of 2023.

Production progress, including completion of construction and deliveries, included:

the Defence division, with €15.3 million (€6.6 million in the first half of 2023), mainly attributable to progress with the job order for the modernisation of Gaeta Class minesweepers for the Italian Navy, as well as the development of studies and experimental tests on new-generation minesweepers for the same Navy, and activities for repairs/refitting/modernisation of the Navy's Termoli-class minesweepers;
The Fast Ferries and Yacht divisions, with a total of €7.1 million (€7.2 million in the first half of 2023), for the construction of a first passenger vessel and start of a second unit for a leading shipowner on the Italian market, as well as the design work for a job order with the Fire Brigade.

This resulted in a negative EBIT in the first half of 2024 of €4.2 million (an improvement of approximately €0.3 million in the corresponding period of 2023), and a pre-tax loss of €7 million, and a net loss for consolidation purposes for the Immsi Group equal to €3.9 million negative, aligned with the figure recorded in the first half of 2023.

In the first half of 2024, the direct parent company RCN Finanziaria S.p.A., with the aim of recapitalising Intermarine S.p.A., waived financial receivables due from the subsidiary for a nominal value of €6.7 million, allocating them to a special reserve for the future capital increase of RCN.

The total value of the orders portfolio of the company amounted to €74 million as at 30 June 2024, referring to the remaining part of existing contracts still to be developed in terms of revenues. This value does not include the contract signed on 26 July 2024 by Intermarine S.p.A. and Leonardo S.p.A., as a temporary joint venture, with NAVARM for the supply of five New-Generation Coastal Minesweepers and related logistic support worth approximately €1.6 billion, of which Intermarine S.p.A.'s share is approximately €1.2 billion. For further details in this regard, please refer to the section below 'Subsequent events and operating outlook'.

As for capital, net financial debt, equal to €85.5 million as at 30 June 2024, was up compared to the balance as at 31 December 2023 and as at 30 June 2023, equal to €78.6 and €68.5 million respectively, mainly due to investments (€10.2 million in the first half of 2024) to expand the production site at Sarzana.

Financial situation and financial performance

As described above, in the first six months of 2024, the Immsi Group's economic ratios decreased compared to the corresponding period of the previous year.

For the purposes of consolidation, the financial statements as at 30 June 2024 of companies included in the scope of consolidation, appropriately modified and reclassified, where necessary, to bring them in line with international accounting standards and uniform classification criteria used by the Group, were used. The scope of consolidation includes the companies in which the Parent Company, directly or indirectly, owns more than half of the voting rights exercisable in Shareholders' Meetings, or has the power to control or direct voting rights by means of contractual or by-law clauses, or can appoint the majority of the members of the Boards of Directors. Excluded from the

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line-by-line consolidation are non-operating subsidiaries or those with low operating levels as their influence on the final result of the Group is insignificant.

As at 30 June 2024, the scope of consolidation was unchanged compared to 31 December 2023, while compared to 30 June 2023:

• the portion of the Piaggio group's consolidated shareholders' equity as at 30 June 2024 was 50.63%, up from 50.57% as at 30 June 2023. The change is the result of the cancellation of 3,521,595 treasury shares held by the company (keeping the share capital unchanged) and the purchase by the subsidiary Piaggio & C. S.p.A. of 426,161 treasury shares; events that occurred during the 2023 financial year;

• With the Shareholders' Meeting's approval of the financial statements for liquidation purposes, the liquidation of the direct subsidiary Pietra S.r.l. (77.78% owned by Immsi S.p.A. and 22.22% owned by Intesa Sanpaolo S.p.A.) was finalised on 27 July 2023.

These changes are limited and did not affect the comparability of the balance sheet and income statement between the two reporting periods.

For further details of changes, see section B of the Notes.

The Group prepares reclassified figures as well as the financial statement schedules required by law. A short description of the main balance sheet and income statement items is provided below the reclassified schedules. Further information on these items may be found in the Notes to the consolidated financial statements. Specific notes referring to the mandatory schedule items are omitted since the main aggregates coincide.

Financial performance of the Group

The below reclassified consolidated income statement of the Immsi Group is classified by the nature of the income components.

In thousands of Euros	30.06.2024		30.06.2023		Change
Net revenues (*)	1,013,769	100%	1,182,567	100%	-168,798	-14.3%
Costs for materials	622,064	61.4%	752,242	63.6%	-130,178	-17.3%
Costs for services, leases and rentals (*)	151,191	14.9%	160,640	13.6%	-9,449	-5.9%
Employee costs	149,870	14.8%	150,210	12.7%	-340	-0.2%
Other operating income	90,711	8.9%	84,502	7.1%	6,209	7.3%
Net reversals (write-downs) of trade	-1,338	-0.1%	-2,262	-0.2%	924	40.8%
and other receivables
Other operating costs	13,847	1.4%	18,304	1.5%	-4,457	-24.3%
OPERATING EARNINGS BEFORE AMORTISATION AND DEPRECIATION (EBITDA)	166,170	16.4%	183,411	15.5%	-17,241	-9.4%
Depreciation and impairment costs of plant, property and	33,207	3.3%	33,933	2.9%	-726	-2.1%
equipment
Impairment of goodwill	0	-	0	-	0	-
Amortisation and impairment costs of	37,860	3.7%	40,973	3.5%	-3,113	-7.6%
intangible assets with a finite life
OPERATING INCOME (EBIT)	95,103	9.4%	108,505	9.2%	-13,402	-12.4%
Income/(loss) from investments	-667	-0.1%	139	0.0%	-806	-
Financial income	7,452	0.7%	16,097	1.4%	-8,645	-53.7%
Borrowing costs	46,679	4.6%	46,637	3.9%	42	0.1%
PROFIT BEFORE TAX	55,209	5.4%	78,104	6.6%	-22,895	-29.3%
Taxes	23,020	2.3%	31,031	2.6%	-8,011	-25.8%
PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	32,189	3.2%	47,073	4.0%	-14,884	-31.6%
Profits or losses arising from assets held for sale	0	-	0	-	0	-
or termination
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS	32,189	3.2%	47,073	4.0%	-14,884	-31.6%
Earnings for the period attributable to non-controlling interests	20,703	2.0%	27,505	2.3%	-6,802	-24.7%
GROUP PROFIT (LOSS) FOR THE PERIOD	11,486	1.1%	19,568	1.7%	-8,082	-41.3%

The Immsi Group's consolidated net revenues as at 30 June 2024 decreased by approximately €168.8 million (-14.3%) to around €1,013.8 million, mainly due to the contribution of the industrial sector (approximately €990.3 million) and the marine sector (approximately €22.4 million). Net revenues from the property and holding sector, were equal to around €1.1 million.

Operating costs and other consolidated Group net costs in the first half of 2024 totalled €847.6 million (equal to 83.6% of net revenues), of which €816.5 million relating to the Piaggio group (82.5% of the Piaggio group's net revenues).

Costs for materials totalled €622.1 million, equal to 61.4% of net revenues. The cost relating to the industrial sector amounted to €611 million, equal to 61.7% of net revenues of the sector.

Employee costs totalled €149.9 million, equal to 14.8% of net revenues. The largest part, €141.1 million (14.2% of net revenues of the sector), is attributable to the Piaggio group. The average paid workforce amounted to 6,539 employees compared to 6,693 in the first half of 2023, mainly attributable to the industrial sector. Average employee numbers were affected by seasonal workers in the summer (on fixed-term employment contracts). The Group effectively hires temporary staff to cover peaks in demand typical of the summer months.

EBITDA in the first half of 2024 came to approximately €166.2 million, equal to 16.4% of net

~ 16 ~

revenues, down by approximately €17.2 million compared to €183.4 million in the first half of 2023 (15.5% of net revenues for the period).

Depreciation and amortisation for the period stood at €71.1 million (of which €69.7 million relative to the industrial sector), representing 7% of turnover, down on the figure of approximately €3.8 million compared to the first half of 2023. Depreciation of property, plant and equipment amounted to €33.2 million (-€0.7 million compared to the figure for the first half of 2023), while amortisation of intangibles, excluding value adjustments on goodwill, totalled €37.9 million (€41 million in the first half of 2023).

EBIT amounted to €95.1 million (-€13.4 million compared to the first half of 2023), equal to 9.4% of net revenues, improving slightly on the figure of 9.2% for the same period of the previous year.

EBIT did not include any impairment of goodwill in the first six months of 2024, nor in the same period of the previous year. In particular, as described in the Notes to the Consolidated Financial Statements as at 30 June 2024 (section F1 "Intangible Assets"), with reference to the goodwill of the CGU relative to the Piaggio group, the Directors, while still considering the plan approved by the Piaggio group on 23 February 2024 to be valid, based on the performance in the first half of 2024, prepared an updated stress test on the recoverability of Goodwill. The sensitivity analyses were prepared by applying the deviations observed in the first half of the year to the plan flows (July 2024 - December 2027) on a constant basis, while keeping the WACC discount rate and the growth rate 'g' used at 31 December 2023 unchanged, as they were still consistent with the information currently observable on the market. These analyses did not reveal any impairment losses, also considering the extent of the existing cover as at 31 December 2023.

Also with reference to the goodwill of the Intermarine CGU, the Immsi Group's management, considering the 2024-2028 forecast data approved by the subsidiary's Board of Directors on 13 March 2024 as still valid, and in light of the contract signed on 26 July 2024 by Intermarine S.p.A. and Leonardo S.p.A, as a temporary joint venture, with NAVARM for the supply of five New-Generation Coastal Minesweepers and related logistic support worth approximately €1.6 billion, of which Intermarine S.p.A.'s share is approximately €1.2 billion (values reflected in the forecast data approved as at 13 March 2024), also considering the extent of the existing cover as at 31 December 2023, did not identify any goodwill impairment indicators as at 30 June 2024; However, the analyses performed showed that the total discounted future cash flows of only the signed contracts currently in the portfolio are sufficient to guarantee the recoverability of the Net Capital Employed and the Goodwill of the Intermarine CGU as at 30 June 2024; Therefore, there was no need to update the impairment test conducted for the purposes of the consolidated financial statements as at 31 December 2023, thus confirming the relevant results.

Considering that the abovementioned analyses conducted by the Immsi Group cash-generating unit were also determined based on estimates, the Group cannot guarantee that there will be no goodwill impairment losses in future periods. Owing to the current climate of uncertainty on core and financial markets, the various factors – both inside and outside the cash-generating units identified – used in preparing the above estimates could be revised in the future. The Group will constantly monitor these factors and the possible existence of future impairment losses.

Net financial expense amounted to a negative €39.9 million, equal to 3.9% of the Group's net revenues (compared to a net expense of €30.4 million in the first half of 2023), and consists of negative balances of €26.3 million relating to the industrial sector (compared to -€19.4 million in the first half of 2023), €2.8 million relating to the marine sector (compared to €2.4 million in the first half of 2023) and €10.8 million relating to the property and holding sector (up on €8.6 million in the first half of 2023). The deterioration is mainly due to the rise in interest rates on debt, mainly related to the new Piaggio bond issue in October 2023, exacerbated by the negative impact of currency management.

Profit before tax stood at €55.2 million as at 30 June 2024, or 5.4% of net revenues, compared to

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€78.1 million (6.6% of net revenues) as at 30 June 2023, with the industrial sector contributing a profit of €77.8 million, the marine sector a loss of €6.9 million and the property and holding sector a loss of €15.6 million.

Taxes for the period totalled approximately €23 million, compared to €31 million as at 30 June 2023.

Net profit for the period, after taxation and net of non-controlling interests, totalled €11.5 million (1.1% of net revenues), down on the figure of €19.6 million as at 30 June 2023.

Reclassified statement of financial position of the Group

In thousands of Euros	30.06.2024	as a %	31.12.2023	as a %	30.06.2023	as a %

Current assets:
Cash and cash equivalents	327,059	12.9%	196,096	8.6%	267,484	11.0%
Financial assets	0	0.0%	6,205	0.3%	0	0.0%
Operating activities	711,519	28.1%	595,197	26.2%	734,770	30.2%
Total current assets	1,038,578	41.0%	797,498	35.1%	1,002,254	41.2%

Non-current assets:
Financial assets	0	0.0%	0	0.0%	0	0.0%
Intangible assets	936,601	37.0%	922,155	40.5%	900,847	37.0%
Property, plant and equipment	391,587	15.5%	376,055	16.5%	365,115	15.0%
Other assets	167,588	6.6%	179,428	7.9%	166,809	6.9%
Total non-current assets	1,495,776	59.0%	1,477,638	64.9%	1,432,771	58.8%
TOTAL ASSETS	2,534,354	100.0%	2,275,136	100.0%	2,435,025	100.0%

Current liabilities:
Financial liabilities	464,396	18.3%	439,543	-19.3%	458,543	18.8%
Operating liabilities	911,075	35.9%	782,706	34.4%	909,884	37.4%
Total current liabilities	1,375,471	54.3%	1,222,249	53.7%	1,368,427	56.2%

Non-current liabilities:
Financial liabilities	680,432	26.8%	590,121	25.9%	576,182	23.7%
Other non-current liabilities	67,348	2.7%	67,499	3.0%	71,921	3.0%
Total non-current liabilities	747,780	29.5%	657,620	28.9%	648,103	26.6%
TOTAL LIABILITIES	2,123,251	83.8%	1,879,869	82.6%	2,016,530	82.8%
TOTAL SHAREHOLDERS' EQUITY	411,103	16.2%	395,267	17.4%	418,495	17.2%
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,534,354	100.0%	2,275,136	100.0%	2,435,025	100.0%

Current assets as at 30 June 2024 amounted to €1,038.6 million, up €241.1 million compared to 31 December 2023, and up €36.3 million compared to 30 June 2023. The increase compared to the end of 2023 is attributable to the growth in operating activities trade (+€116.3 million), mainly due to the increase in trade and other receivables and inventories, referred in particular to the Piaggio group due to the seasonal nature of the business, and to the growth in cash and cash equivalents (+€131 million).

Non-current assets as at 30 June 2024 came to €1,495.8 million against €1,477.6 million as at 31 December 2023, an increase equal to €18.1 million.

In particular, among non-current assets, intangible assets amounted to €936.6 million, up by €14.4 million compared to 31 December 2023, mainly due to the capitalisation in the industrial sector of development costs and know-how for new products and new engines. Plant, property and equipment amounted to €391.6 million (increase of €15.5 million compared to the end of 2023) and other assets amounted to €167.6 million (compared to €179.4 million at the end of 2023), mainly impacted by the reduction in the deferred taxes of Piaggio.

Current liabilities as at 30 June 2024 amounted to €1,375.5 million, an increase compared to 31

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December 2023 of €153.2 million, compared to the increase mainly in operating liabilities (+€128.4 million), and financial liabilities from €439.5 million to €464.4 million.

Non-current liabilities as at 30 June 2024 came to €747.8 million, up by approximately €90.3 million from €657.6 million as at 31 December 2023. Consolidated shareholders' equity attributable to the Group and non-controlling interests totalled €411.1 million as at 30 June 2024, of which €180.1 million attributable to minority interests.

An analysis of capital employed and its financial cover is presented below:

In thousands of Euros	30.06.2024	as a %	31.12.2023	as a %	30.06.2023	as a %

Current operating assets	711,519	54.9%	595,197	46.1%	734,770	58.4%
Current operating liabilities	-911,075	-70.3%	-782,706	-60.7%	-909,884	-72.3%
Net operating working capital	-199,556	-15.4%	-187,509	-14.5%	-175,114	-13.9%

Intangible assets	936,601	72.3%	922,155	71.5%	900,847	71.6%
Property, plant and equipment	391,587	30.2%	376,055	29.1%	365,115	29.0%
Other assets	167,588	12.9%	179,428	13.9%	166,809	13.3%
Capital employed	1,296,220	100.0%	1,290,129	100.0%	1,257,657	100.0%

Non-current non-financial liabilities	67,348	5.2%	67,499	5.2%	71,921	5.7%
Capital and reserves of non-controlling interests	180,084	13.9%	166,427	12.9%	177,349	14.1%
Consolidated Group shareholders' equity	231,019	17.8%	228,840	17.7%	241,146	19.2%
Total non-financial sources	478,451	36.9%	462,766	35.9%	490,416	39.0%
Net Financial debt	817,769	63.1%	827,363	64.1%	767,241	61.0%

The following table shows the change in the net financial position for the period:

30.06.2024	31.12.2023	30.06.2023
		161,244
-25,475	-102,647	-92,299
107,577	138,640	68,945
		-13,281
		-17,528
		-45,091
		-25,834
		296
		0
		-3,053
9,594	-95,668	-35,546

		-731,695
-817,769	-827,363	-767,241
	133,049 -8,514 -13,990 -51,400 -35,545 607 9,466 1,393 -827,363	241,287 -18,389 -39,683 -108,566 -67,986 2,866 13 -2,563 -731,695

Net financial debt as at 30 June 2024 was equal to €817.8 million, down by €9.6 million compared to €827.4 million as at 31 December 2023, mainly due to cash generated internally (+€133 million) and the sale of Unicredit shares held in the portfolio by the parent company (+€9.5 million), partially offset by the dynamics of working capital (-€25.5 million), net investments in property, plant and equipment and intangible assets for the period (-€86.9 million), mainly relating to the Piaggio group, as well as dividends paid to non-controlling interests (-€22.5 million).

Net debt – analysed below and compared with the same figures as at 31 December 2023, is presented in accordance with the ESMA guidelines 32-382-1138 of 4 March 2021, adjusted as at 30 June 2024, as follows: financial assets and liabilities arising from the assessment at fair value, designated hedging and non-hedging derivative financial instruments, the fair value adjustment of the related hedged items, equal to €0.3 million; payables and accrued interest accrued on bank borrowings for a total of €10.3 million; interest and accruals on loans to minority shareholders totalling €7.1 million.

In thousands of Euros	30.06.2024	31.12.2023	30.06.2023

A Cash and cash equivalents	-327,059	-196,096	-267,484
B Cash equivalents	0	0	0
C. Other financial assets	0	-6,205	0
D Total liquidity (A + B + C)	-327,059	-202,301	-267,484

E Current financial payables (including debt instruments, but not including
current portion of non-current financial debt)
- Bonds	0	0	0
- Payables due to banks	274,234	255,979	268,239
- Lease liabilities	9,975	10,629	8,781
- Amounts due to other lenders	69,235	55,798	66,091
F Current portion of non-current financial debt	110,952	117,137	115,432
G Total current financial debt (E + F)	464,396	439,543	458,543

H Net current financial debt (G + D)	137,337	237,242	191,059

I Non-current financial debt (excluding current portion and
debt instruments
- Payables due to banks	411,932	322,567	309,752
- Lease liabilities	22,296	21,548	19,778
- Amounts due to other lenders	71	106	141
J Debt instruments	246,133	245,900	246,511
K Trade payables and other non-current payables	0	0	0
L Non-current financial debt (I + J + K)	680,432	590,121	576,182

M Net financial debt (H + L)	817,769	827,363	767,241

With reference to the breakdown of debt, compared to 31 December 2023, short-term net financial debt decreased from a balance of €237.2 million to a balance of €137.3 million (i.e. -€99.9 million), with an increase in medium-to-long term financial debt from €590.1 million to €680.4 million (+€90.3 million). Further details are provided in the section "G2 – Financial Liabilities" of the Notes to the condensed interim financial statements.

Immsi Group

Research, development and innovation activities

The Immsi Group carries out research, development and innovation activities through the Piaggio group which, in the first half of 2024, continued its commitment to maintaining technological leadership in the sector, and through subsidiary Intermarine S.p.A., whose research and development activities mainly concern new projects for vessels and prototypes, production technologies, plant innovations and innovative materials.

For an in-depth analysis of the projects supported by the Group and the resources allocated to them, readers are referred to the section on Products and Services in the Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 of the Immsi Group as at 31 December 2023 and the section on the Product Dimension of the Consolidated Non-Financial Statement pursuant to Legislative Decree 254/2016 of the Piaggio group as at 31 December 2023.

Risk factors

Due to the nature of its business, the Group is exposed to different types of risks. For this reason, the Group has developed procedures at both the Parent Company level and in its main subsidiaries to manage risks, with a methodology based on Enterprise Risk Management (ERM) in the most exposed areas. These risks are identified at a strategic, external, operational and financial level, and also take into consideration sustainability issues, in particular so-called "ESG" (Environmental, Social and Governance related) risks, i.e. those related to environmental factors, personnel, social aspects and human rights and the fight against active and passive corruption. Details are provided in the 2023 Consolidated Non-Financial Statement.

Strategic risks

Reputational and Corporate Social Responsibility risk – In carrying out its operations, the Group could be exposed to stakeholders' perception of the Group and its reputation and their loyalty changing for the worse because of the disclosure of detrimental information or due to sustainability requirements in the Non-financial Statement published by Immsi S.p.A. and Piaggio & C. S.p.A., not being met, as regards economic, environmental, social and product-related aspects.

In particular, the Piaggio group has implemented tools to monitor brand perception and customer satisfaction to deal with this risk.

Risks related to defining strategies – In defining its strategic objectives, the Group could make errors of judgment with a consequent impact on its image and financial performance.

Risks related to adopting strategies – In carrying out its operations, the Group could be exposed to risks from the wrong or incomplete adoption of strategies, with a consequent negative impact on achieving the Group's strategic objectives. Periodic monitoring to verify any deviations from previously established objectives makes it possible to reduce the impact of these risks.

External risks

Risks associated with the macroeconomic and geopolitical context – The Group, and the Piaggio group in particular, is exposed to risks deriving from the characteristics and evolutionary dynamics of the economic cycle and the national and international political context. To mitigate any negative effects arising from the macroeconomic and geopolitical context, it continued its strategic vision, diversifying operations at international level - in particular in Asia where growth rates of economies are still high, and consolidating the competitive positioning of its products.

The conflict between Russia and Ukraine has had major worldwide consequences for the economic

~ 21 ~

effects on global markets, especially in terms of increased transport costs, raw material prices and energy prices. The geographical diversification of the Group's sales and purchases means that it has essentially no exposure in the conflict area. The indirect impacts of the conflict mainly concerned the increase in the cost of energy, especially for European plants, and the increase in the cost of raw materials, mitigated for the Piaggio group in part by the agreements entered into with suppliers. The conflict in the Middle East is having an impact on trade flows. In particular, possible attacks on ships transiting the Red Sea have led to a drastic reduction in traffic in the Suez Canal and a diversion of trade routes, with a consequent increase in costs and times related to the transport of supplies and the distribution of products. The direct impacts on the Group are currently limited, mitigated by selecting local suppliers and by the efficiency of the systems used for the planning and logistics process.

Risks related to consumer purchasing habits – The success of the Group's products depends on its ability to manufacture products that cater for consumer's tastes and – with particular reference to the Piaggio group – can meet their needs for mobility.

With reference to the subsidiary Intermarine, however, the success of the company in the different lines of business in which it operates depends on the ability to offer innovative and high quality products that guarantee the performance demanded by customers, in terms of lower fuel consumption, higher performance, greater passenger transport capacity, greater cruising comfort, handling and safety of the vessels used, among other things, in the defence and control of territories. The risk could derive from the uncertainties of fitting out the new prototypes and the lack of funds and programmes to renew the fleet on the part of Italian and international shipowners. In this respect, shipowners will now be able to verify and use the availability of financial resources under the NRRP. Levering customer expectations and emerging needs, with reference to its product range and customer experience is essential for the Piaggio group to maintain a competitive edge. Through market analysis, focus groups, concept and product testing, investments in research, development and innovation and sharing its roadmap with suppliers and partners, Piaggio aims to capitalise on emerging market trends to renew its own product range. Customer feedback enables Piaggio to evaluate customer satisfaction levels and fine-tune its own sales and after-sales service model.

Risks associated with the high degree of market competition – In addition, the Group is exposed to the actions of competitors that, through technological innovation or replacement products, could obtain products with better quality standards and streamline costs, offering products at more competitive prices.

In the industrial sector, the Piaggio group has tried to tackle this risk, which could have a negative impact on the financial position and performance of the Group, by manufacturing high quality products that are innovative, reliable and safe, and by consolidating its presence in the geographic segments where it operates.

With reference to the marine sector, and the mine sweeping platforms segment, Intermarine has a considerable technological edge over the competition, while the Fast Ferries division is affected in particular by a context in which the owners prefer carrying out repairs on operating vessels rather than investing in new constructions. It has become apparent in the recent period that activities and prospects in the Fast Ferries market are reviving, in the light of the recent requests for tenders received from private shipowners and invitations to tender.

Risk related to the regulatory and legal framework – Numerous national and international laws and regulations on safety, noise levels, consumption and the emission of pollutant gases apply, in particular to Piaggio products. Strict regulations on atmospheric emissions, waste disposal, the drainage and disposal of water and other pollutants also apply to the group's production sites, as do reporting obligations on sustainability.

Unfavourable changes in the regulatory and/or legal framework at a national and international level could mean that products can no longer be sold on the market, forcing manufacturers to invest to renew their product ranges and/or renovate/upgrade production plants.

To deal with these risks, the Piaggio group has always invested in research and development into innovative products, anticipating any restrictions on current regulations. Moreover, the Piaggio group is not only a member of Confindustria, but also of important national and international associations in the automotive sector, such as ACEM (chaired by Michele Colaninno), ANFIA and ANCMA, which represent and protect the economic, technical and regulatory interests of the automotive sector in institutional and political dimensions, and with the authorities, bodies and associations responsible, at national and international level, for industrial policy and the individual and collective mobility of persons and goods.

Finally, the Piaggio group, as one of the sector's leading manufacturers, is often requested to be represented on parliamentary committees appointed to discuss and formulate new laws.

Intermarine is also a member of important trade associations such as Confindustria La Spezia and Messina as well as the AIAD Federation representing Italian Aerospace, Defence and Security Companies.

Risks related to natural events - The global scenario of the coming years depicts an increasing intensification of extreme weather phenomena and risks related to climate change with the consequent need for increased attention and protection in this regard. As part of the assessment of risks related to climate change, the Piaggio group has not currently identified as relevant risks related to the inability to achieve strategic objectives due to changes in the external context (also taking into account possible impacts on the supply chain) and possible inadequate management of atmospheric emissions.

The process of identifying these risks, as well as the assessments of their relevance and significance, were conducted both on the basis of the internal context as well as on the basis of the dynamics of the reference market, and current regulations.

At a strategic level, the Piaggio group intends in any event to pursue the integration of sustainable development principles into its vision and business model in an increasingly precise and consistent way, which includes the preparation of its Decarbonisation Plan. With this Plan, the Group, and in particular Piaggio, has confirmed its commitment to sustainability, defining concrete actions to contribute to achieving the climate targets set by the European Union.

In this context it should be noted that the Piaggio group operates through industrial plants located in Italy, India, Vietnam and Indonesia. These sites could be affected by natural events, such as earthquakes, typhoons, flooding and other catastrophes that may damage sites and also slow down/interrupt production and sales.

In this respect, in 2023 the Piaggio group, with the support of a leading consulting firm, carried out a climate risk analysis for the plants in Pontedera (Italy) and Baramati (India). This analysis did not highlight any critical issues related to climatic factors for either production site.

Potential impacts related to the physical risks associated with climate change are managed by the Group and in particular by the Piaggio group and the subsidiary Intermarine S.p.A. through the continuous renovation of facilities, and also through the stipulation of specific insurance cover divided among the various sites according to their relative importance.

Specifically, with reference to Piaggio, the outcome of the above assessments on the relevance of climate change risks was also duly taken into account in the process of defining the assumptions adopted to prepare the Business Plan, as better described in the notes to the consolidated financial statements of the Piaggio group, in the section on goodwill.

Risks related to the pandemic - If a pandemic spreads and measures are adopted by various governments to contain the virus, the Group's businesses could be negatively affected in terms of decreasing revenues, margins and cash flows.

In particular, the Piaggio group could have an impact on:

~ 23 ~

❏ the procurement chain: suppliers might no longer be able to produce/deliver the components necessary to supply production sites;

❏ production activities: the Group might no longer be able to use the workforce, following government regulations limiting personal movement, or it might be impossible for the company to guarantee a healthy, protected work environment;

❏ the distribution of products: measures to contain the spread of the virus could require sales outlets to be closed, or the Group might not be able to supply the sales network.

the Piaggio group has tried and is trying to deal with this risk, which could negatively affect the group's financial position and performance following a possible decrease in revenues, profitability and cash flows, thanks to a global sourcing policy, a production capacity distributed across different continents and a sales network present in over 100 nations.

The Group carefully monitors the development of the health situation and implements all precautions to ensure the health and safety of employees within its plants and to be able to fulfil all its commitments.

Risk related to the adoption of new technologies – The risk related to the adoption of new technologies is associated above all with the Piaggio group, which is exposed to risk arising from the difficulty of keeping abreast with new technologies, both in terms of products and the production process. To deal with this risk, on the one hand, as regards products, the R&D centres in Pontedera, Noale and the PADc (Piaggio Advance Design Center) in Pasadena carry out research, development and the testing of new technological solutions, such as those dedicated to electric vehicles, through strategic partnerships in some cases. Piaggio Fast Forward in Boston is also studying innovative solutions to anticipate and respond to the mobility needs of the future.

As regards the production process, Piaggio has operational areas dedicated to the study and implementation of new solutions to improve the performance of production facilities, with particular attention paid to sustainability and energy efficiency aspects.

Risks related to the sales network – The Piaggio group's business is closely related to the sales network's ability to guarantee end customers a high quality sales and after-sales service, to build a relationship of trust and lasting. The Piaggio group ensures these levels are maintained by defining compliance with certain technical/professional standards in contracts, offering training for sales and after-sales staff and implementing periodic controls, reinforced by new IT systems designed to improve network monitoring activities and therefore the level of customer service.

Operating risks

Product-related risks – The Group has to deal with risks related to product defects due to nonconforming quality and safety levels.

The risk for the Piaggio group refers to consequent recall campaigns, that would expose the group to: the costs of managing campaigns, replacing vehicles, claims for compensation and above all if faults are not managed correctly and/or are recurrent, damage to its reputation. A product nonconformity may be due to potential errors and/or omissions of suppliers, or internal processes (i.e. during product development, production, quality control).

To mitigate these risks, the Piaggio group has established a Quality Control system, it tests products during various stages of the production process and carefully sources its suppliers based on technical/professional standards. The quality provided by the group is also guaranteed by obtaining and maintaining quality management system certification at global level (ISO 9001). The Piaggio group has also defined plans to manage recall events and has taken out insurance to protect the group against events attributable to product defects.

To deal with product risk, the subsidiary Intermarine instead normally adopts a type of contract that also includes assistance and logistics packages which are formalised in agreements regulating acquired contracts.

Risks related to the production process/business continuity – The group is exposed to risk connected with possible interruptions to company production, due to the unavailability of raw materials or components, skilled labour, systems or other resources.

To deal with these risks, the Group has necessary maintenance plans, invests in upgrading machinery, has a flexible production capacity, prepares Disaster Recovery plans and sources from several suppliers of components to prevent the unavailability of one supplier affecting company production.

Moreover, the operating risks related to industrial sites in Italy and other countries, as regards the Piaggio group, are managed through specific insurance cover assigned to sites based on their relative importance.

Risks related to the supply chain In carrying out its operations, the Group sources raw materials, semi-finished products and components from a number of suppliers.

As regards the Piaggio group, operations are conditioned by the ability of its suppliers to guarantee the quality standards and specifications requested for products, as well as their delivery times. To mitigate these risks, the Piaggio group qualifies and periodically evaluates its suppliers based on professional/technical/financial criteria in line with international standards.

With reference to the marine sector, Intermarine acquires raw materials, contracts and services from a large number of external suppliers, that have specific competencies, in particular in ship fitting. The close cooperation between producers and suppliers is common in the fields where the company operates and, while it may lead to economic benefits in terms of lower costs and greater flexibility, it also means that companies must rely on these suppliers. Supplier difficulties could have a negative impact, causing interruptions in and/or delays to production activities, with the risk of not meeting deadlines.

Risks related to the environment and health and safety – The Group has production sites, research and development centres and sales offices in different nations and so is exposed to the risk of not being able to guarantee a safe working environment, with the risk of causing potential harm to property or people and exposing the Group to legal sanctions, lawsuits brought by employees, costs for compensation payments and reputational harm.

To mitigate these risks, the Piaggio group adopts a model that is based on environmental sustainability, in terms of safeguarding natural resources and the possibility that the ecosystem might

~ 25 ~

absorb the direct and indirect impact of production activities. Specifically, the Piaggio group seeks to minimise the environmental impact of its industrial activities through careful definition of the technological transformation cycle and use of the best technologies and most modern methods of production.

The risks related to accidents/injuries sustained by personnel are mitigated by aligning processes, procedures and structures with applicable Occupational Safety laws, as well as best international standards.

For the Piaggio group, these commitments, set out in the Code of Ethics and confirmed by top management in the Group's "environmental policy" which is the basis for environmental certification (ISO 14001) and health and safety certification (ISO 45001) already awarded and maintained at production sites, are in any case a mandatory benchmark for all company sites.

The subsidiary Intermarine S.p.A. also adopts systems aimed at the most efficient management and monitoring of environmental and health and safety-related risks associated with its production activities. In particular, the shipyards at Sarzana and Messina have Environmental certification (ISO 14001), issued by RINA. Although not yet certified, all sites have also adopted the same Integrated Management System which also covers health and safety (ISO 45001).

Risks related to processes and procedures adopted – The Group is exposed to the risk of shortcomings in planning its company processes or errors and deficiencies in carrying out operations.

To deal with this risk, the Group has established a system of directives comprising organisational notices and Manuals/Policies, Management Procedures, Operating Procedures and Work Instructions. For the Piaggio group, all documents related to Group processes and procedures are part of the single Group Document Information System, with access that is regulated and managed on the company intranet.

Risks related to delays in the completion of orders – With particular reference to the subsidiary Intermarine S.p.A. operating in the marine industry, any delay in the completion of contracts in progress may lead to customers requesting penalties for late delivery where contractually agreed, with the risk of reducing the overall profitability of orders and reducing financial assets.

On the other hand, the company could pass on the effect of the impact on delivery times, for delays in deliveries and in completing services and for failing to pass tests, with the need to perform the tests again, to its subcontractors.

Risks related to human resources – The main risks the Group is exposed to concerning human resources management include the ability to recruit expertise, professionalism and experience necessary to achieve objectives. To offset these risks, the Group has established specific policies or practices for recruitment, career development, training, remuneration and talent management, which are adopted in all countries where it operates according to the same principles of merit, fairness and transparency, and focusing on aspects that are relevant for the local culture.

The employees of Group companies are protected by laws and collective labour contracts that guarantee them – through local and national representation – the right to be consulted on specific matters, including programmes related to the use of staff in accordance with ongoing job orders.

In Europe, the Piaggio group operates in an industrial context with a strong trade union presence, and is potentially exposed to the risk of strikes and interruptions to production activities.

In the recent past, the Group was not affected by major interruptions to production because of strikes. To avoid the risk of interruptions to production activities, as far as possible, the Group bases its relations with trade union organisations on dialogue.

Legal risks – The Group legally protects its products and brands throughout the world. In some countries where the Group operates, laws do not offer certain standards of protection for intellectual

~ 26 ~

property rights. This circumstance could render the measures adopted by the Piaggio group in particular to protect itself from the unlawful use of these rights by third parties inadequate. Within the framework of its operations, the Group is involved in legal and tax proceedings. As regards some of the proceedings, the Group could be in a position where it is not able to effectively quantify potential liabilities that could arise. A detailed analysis of the main disputes is provided in the specific section of the Report on Operations.

Risks related to internal offences – The Group is exposed to risks of its employees committing offences, such as fraud, active and passive corruption, acts of vandalism or damage that could have negative effects on its business results in the year, and also harm the image and integrity of the company and its reputation. To prevent these risks, the Group has adopted Organisational Models pursuant to Legislative Decree 231/2001 (Compliance Programmes) and Codes of Ethics, which illustrate the principles and values inspiring the entire organisation, and has set up Whistleblowing platforms, which can be used to communicate information on serious wrongdoings relating to violations of the law and/or the internal control system, which have occurred or are very likely to occur within the Organisation.

Risks related to financial disclosure – The Group is exposed to the risk of possible inadequacies in its procedures that are intended to ensure compliance with main Italian and foreign regulations applicable to financial disclosure, running the risk of receiving fines and other sanctions. In particular, the Group is exposed to the risk that financial reporting for Group stakeholders is not accurate and reliable due to significant errors or the omission of material facts and that the Group provides disclosure required by applicable laws in a manner which is inadequate, inaccurate or untimely. It should be noted that the control activity provided for by Law 262/2005, in addition to referring to the Parent Company, is also extended to the Group's most important subsidiaries. The Group also has an internal audit function, while the financial statements are audited by the Independent Auditors.

ICT system risks - With reference to this category, the main risk factors that could compromise the availability of the Group's ICT systems include cyber attacks, which could cause the possible interruption of production and sales support activities or compromise the confidentiality, integrity and availability of personal data managed by the Group.

On a global level, there was an increase in cyber attacks during the year, both in number and intensity, which did not, however, cause any damage, particularly in the Piaggio group. In this context, continuous measures are taken to consolidate the centralised control system, aimed at improving IT security.

Other risks – In the specific case of the Parent Company Immsi S.p.A., in consideration of its nature as a holding company and the different phase of development and advancement of investments made both directly and through subsidiaries, its financial performance and profitability are strictly related to the financial performances of subsidiaries.

Financial risks

Risks related to insufficient cash flows and access to the credit market – At the end of the reporting period, the main sources of Group financing were:

debenture loans for a nominal amount of approximately €250 million issued by Piaggio & C. S.p.A.;
bank loans for a nominal amount of approximately €800.2 million. The type, rates and maturities of these loans are discussed in the Notes.

In addition, the Group has outstanding amounts due for leases, amounts due to subsidiaries not fully consolidated and amounts due to other lenders for an overall amount of approximately €101.6 million.

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The Immsi Group has undrawn credit lines of €450 million, available to meet any unforeseen cash requirements, of which €406 million referred to the Piaggio group.

The Group is exposed to the risk arising from the production of cash flows that are not sufficient to guarantee Group payments due, with effects on adequate profitability and growth such as to guarantee the pursuit of strategic objectives. Moreover, this risk is connected with the difficulty the Group may have in obtaining loans or a worsening in conditions of loans necessary to support Group operations in appropriate time frames. The debt indicated above could also negatively affect Group operations in the future, limiting its capacity to obtain further financing or to obtain it at more favourable conditions. In particular, over the next 12 months, together with the short-term instalments of medium- and long-term loans, several short-term credit lines will expire, the renewal of which is crucial to be able to continue operating. A detailed examination of these lines is provided in the Notes.

To face this risk, the Group's cash flows and credit line needs are monitored constantly by management or, in the case of the Piaggio group, managed centrally under the control of the Piaggio group's Treasury Department, in order to guarantee an effective and efficient management of financial resources, as well as optimise the debt's maturity standpoint.

The Piaggio group also has undrawn credit lines, sufficient to enable it to manage with any unforeseen cash requirements.

In addition, Piaggio & C., the parent company of the Piaggio group, finances the temporary cash needs of the group companies through the direct disbursement of short-term loans regulated at market conditions or through guarantees, and also provides for the transfer of receivables and supply chain financing or reverse factoring operations as specified in more detail in the valuation criteria of the notes to the 2023 consolidated financial statements.

To deal with this risk, Intermarine also monitors and strictly manages the company's cash flow and credit line needs with the aim of ensuring an effective and efficient management of financial resources as well as optimising the debt's maturity standpoint.

The Parent Company Immsi S.p.A. supports, where necessary, its subsidiaries in the "Property and Holding" and "Marine" sectors through credit lines in order to guarantee support for the implementation of their development plans.

Also with reference to the net financial indebtedness of the above-mentioned Sectors, reference should be made to the section of the Notes to the Financial Statements entitled "Accounting standards and measurement criteria".

Exchange rate risks – The Group, primarily through Piaggio group companies, undertakes operations in currencies other than the Euro and this exposes it to the risk of fluctuating exchange rates of different currencies. Exposure to business risk consists of envisaged payables and receivables in foreign currency, taken from the budget for sales and purchases reclassified by currency and accrued on a monthly basis. With reference to the Piaggio group, the policy is to hedge at least 66% of the exposure of each reference month. Exposure to the settlement risk consists of receivables and payables in foreign currency acquired in the accounting system at any moment. The hedge must at all times be equal to 100% of the import, export or net settlement exposure for each currency. Over the course of the year, the exchange risk has been managed in line with the current policy, which aims to neutralise the possible negative effects of exchange rate changes on company cash flow, by hedging the business risk, which concerns changes in company profitability in relation to the annual business budget on the basis of a key change (the so-called "budget change") and the settlement risk, which concerns the differences between the exchange rate recorded in the financial statements for receivables or payables in foreign currency and that recorded in the related receipt or payment.

Interest rate risks – The Group has assets and liabilities which are sensitive to changes in interest rates and are necessary to manage liquidity and financial requirements. These assets and liabilities

~ 28 ~

are subject to an interest rate risk and are hedged by derivatives or, where necessary, by specific fixed-rate loan agreements. For a more detailed description, please refer to the Notes to the Condensed Consolidated Interim Financial Statements.

Credit risk – The Group is exposed to the risk of late payments of receivables. This risk is connected with any downgrading of the credit rating of customers and consequent possibility of late payments, or the insolvency of customers and consequent failure to receive payments. To balance this risk, the Group evaluates the financial reliability of its business partners. The Group, in particular the companies Piaggio & C. S.p.A. and Intermarine S.p.A., also stipulates contracts with important Italian and foreign factoring companies for the sale of trade receivables without recourse.

Risks related to deleverage – This risk is connected with compliance with covenants and targets to reduce loans, to maintain a sustainable debt/equity balance.

To offset this risk, the measurement of financial covenants and other contract commitments is monitored by the Group on an ongoing basis.

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Immsi Group

Human resources

As at 30 June 2024, the Immsi Group employed 6,520 staff, of which 99 in the property and holding sector, 6,206 in the industrial sector (Piaggio group) and 215 in the marine sector (Intermarine S.p.A.). The following tables divide resources by category and geographic segment:

Human resources by category

numbers	30.06.2024
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Senior management	4	119	8	131
Middle managers and white-collar	34	2,308	130	2,472
workers
Blue-collar workers	61	3,779	77	3,917
TOTAL	99	6,206	215	6,520
numbers		31.12.2023
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Senior management	4	112	7	123
Middle managers and white-collar workers	27	2,319	127	2,473
Blue-collar workers	19	3,494	79	3,592
TOTAL	50	5,925	213	6,188
numbers	Changes
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Senior management	0	7	1	8
Middle managers and white-collar	7	-11	3	-1
workers
Blue-collar workers	42	285	-2	325
TOTAL	49	281	2	332

Human resources by geographic segment

numbers	30.06.2024
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Italy	99	3,341	215	3,655
Rest of Europe	0	259	0	259
Rest of the world	0	2,606	0	2,606
TOTAL	99	6,206	215	6,520
numbers	31.12.2023
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Italy	50	3,007	213	3,270
Rest of Europe	0	271	0	271
Rest of the world	0	2,647	0	2,647
TOTAL	50	5,925	213	6,188
numbers	Changes
	Property and	Industrial	Marine	Group
	holding sector	sector	sector	total
Italy	49	334	2	385
Rest of Europe	0	-12	0	-12
Rest of the world	0	-41	0	-41
TOTAL	49	281	2	332

Employee numbers were also affected by seasonal workers in the summer (on fixed-term employment contracts). The Group effectively hires temporary staff to cover peaks in demand typical of the summer months.

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For further information on Group employees (such as remuneration and training policies, diversity and equal opportunities, safety, etc.), reference is made to the section on the Social Dimension in the Consolidated Non-Financial Statement at 31 December 2023 prepared pursuant to Legislative Decree 254/2016.

Stock options

As at 30 June 2024, Immsi S.p.A. had no existing stock option plan.

With reference also to the subsidiary Piaggio & C. S.p.A., as at 30 June 2024 there were no incentive plans based on the allocation of financial instruments.

Own shares

As at 30 June 2024, Immsi S.p.A. held no treasury shares. The share capital of Immsi S.p.A. is unchanged at €178,464,000.00, represented by 340,530,000 ordinary shares with no nominal value.

Furthermore, the Ordinary Shareholders' Meeting of Immsi S.p.A. of 29 April 2024 approved a plan for the purchase and disposal of ordinary shares of the Company, revoking the previous authorisation of the Ordinary Shareholders' Meeting of Immsi S.p.A. of 28 April 2023.

On 7 May 2024, following the aforementioned approval at the Shareholders' Meeting, the Board of Directors of Immsi S.p.A. resolved to start a treasury share purchase programme; this is a useful strategic investment opportunity for all purposes allowed under applicable laws, including those envisaged in Article 5 of Regulation (EU) 596/2014 (Market Abuse Regulation, "MAR") and in the practices permitted by Consob pursuant to Article 13 of the MAR, where applicable. Among these is the purpose of purchasing treasury shares with a view to their subsequent cancellation.

The purchase of shares connected with the adoption of the programme will be based on the procedures and limits established by the above-mentioned resolution of the shareholders' meeting and specifically:

the purchase may concern a maximum of 10,000,000 Immsi ordinary shares, with no nominal value indicated, for a maximum value of €10 million and, therefore, within the limits established by law (20% of the share capital, pursuant to Article 2357, paragraph 3, of the Italian Civil Code);
the purchase of treasury shares must be within the limits of profit that may be distributed and available reserves as resulting from the last, also interim, financial statements approved at the time the operation takes place;
purchases of treasury shares will be made on the regulated market in such a way as to ensure equal treatment of shareholders pursuant to Article 132 of Legislative Decree 58/1998, with a gradual approach deemed appropriate to the interests of the Company and as permitted by current legislation, according to the procedures established in Article 144-bis, paragraph 1, letter b) of Consob Regulation 11971/1999, as subsequently amended. Purchases should also take into account the conditions relating to negotiation referenced in Article 3 of the Commission Delegated Regulation (EU) 1052/2016 ("Regulation 1052") in compliance with the MAR, as well as the practices accepted by Consob pursuant to Article 13 MAR, where applicable (i) to a consideration that is no higher than the price of the last independent transaction or the price of the highest independent offer currently available in the trading venues where the purchase is made (whichever is higher). The unit price cannot in any case be less than a minimum of 20% and a maximum of 10% higher than the arithmetic mean of the official Immsi share price in the ten trading days prior to each individual purchase; (ii) for volumes of more than 25% the average

daily volume of Immsi S.p.A. shares traded on a regulated market on which the purchase is carried out, calculated according to the parameters as of Article 3 of Regulation 1052;

• the purchase programme may also take place in several tranches, ending by 28 October 2025.

With reference to the subsidiary Piaggio & C. S.p.A., as at 30 June 2024, the subsidiary held 426,161 treasury shares, equal to 0.1202% of shares issued.

Management and coordination

The parent company, Immsi S.p.A., gives reasons why management and coordination activities were not performed by its parent company Omniaholding S.p.A (also via the subsidiary Omniainvest S.p.A) in section 2, letter j), of the Report on Corporate Governance and Ownership as at 31 December 2023. Please refer to this for further information.

Related Party Transactions

Revenues, costs, payables and receivables as at 30 June 2024 involving parent, subsidiary and associate companies, refer to the sale of goods or services which are a part of normal operations of the Group.

Transactions are carried out at normal market values, depending on the characteristics of the goods and services provided.

Information on related-party transactions, including the information required by Consob communication no. DEM/6064293 of 28 July 2006, is presented in the notes to the Condensed consolidated interim financial statements as at 30 June 2024.

Disputes in progress

For information on disputes taking place at a Group level, reference is made to the Directors' Report on Operations of the Immsi Group as at 31 December 2023, in the section entitled "Disputes in progress", with the exception of more important aspects, which are reported below.

As regards the industrial sector (Piaggio group):

• The company TAIZHOU ZHONGNENG appealed to the Court of Cassation, to which Piaggio filed a counter-appeal on 5.09.2019. Following the hearing, on 17 October 2023, the Court of Cassation, with a ruling published on 29 November 2023, confirmed the protection of copyright on the shape of the Vespa and, as far as the trademark is concerned, instead referred the decision to the Court of Appeal of Turin.

TAIZHOU ZHONGNENG then resumed the proceedings before the Court of Appeal and Piaggio & C S.p.A. duly entered an appearance on 20.06.2024. At the hearing on 11 July 2024, the Judge adjourned the case to 2 October 2024, so that the case could be discussed in a joint hearing.

• On 16 January 2023, the Court of Appeal of Milan ruled on the proceedings brought by PEUGEOT MOTOCYCLES S.a.s. (appeal against the combined proceedings of infringement and invalidity) and: (i) upheld the first instance ruling with reference to the finding of validity of EP'612 and the existence of the literal infringement of claims 1, 2 and 5 of the patent by Metropolis (ii) upheld the measures of the injunction and withdrawal from the market ordered by the Court of First Instance but, unlike the first instance ruling, limited the order of withdrawal from the market only to Peugeot Motocycles Italia S. r.l. in liquidation (iii) also rejected Peugeot's sixth ground of appeal (iv) ordered the general order against Peugeot Motocycles Italia S.r.l. in liquidation (v) ordered, by

~ 32 ~

separate order, the continuation of the case for the determination of the indemnifiable damage. As part of the continuation of the second-instance proceedings, an expert's appraisal was provided, following which the hearing was held on 8 November 2023. On this occasion, the Court of Appeal granted the parties deadlines for the filing of their final written briefs (9 January 2024 and 29 January 2024, respectively for closing statements and rejoinders), with the oral hearing set for 24 April 2024. In the meantime, Peugeot appealed before the Court of Cassation against the non-final ruling, which was followed by Piaggio's counter-appeal. The appeal before the Court of Cassation as declared inadmissible on 17 April 2024.

In a ruling published on 31 May 2024, the Court of Appeal of Milan sentenced Peugeot Italia to pay compensation for the damages suffered by Piaggio, estimated as €872,000, plus interest and monetary revaluation, and Peugeot and Peugeot Italia to pay Piaggio's legal costs. The time limits for a possible appeal to the Court of Cassation against the sentence of 31 May 2024 are now pending.

Piaggio also started legal action against PEUGEOT MOTOCYCLES S.a.S. before the Tribunal de Grande Instance in Paris. In a ruling of 7 September 2021, the Court of Paris ruled in favour of Piaggio ordering Peugeot Motocycles to pay compensation for damages amounting to €1.5 million, in addition to further fines and legal costs, ordering a ban on Peugeot Motocycles manufacturing, promoting, marketing, importing, exporting, using and / or possessing in French territory any three-wheeler scooter that uses the control system patented by Piaggio (including the Peugeot Metropolis). Piaggio appealed for the provisional enforceability of the first instance ruling with a hearing held on 8 February 2022. The Court rejected the application to grant Piaggio provisional enforceability with a decision on 8.03.2022. At the same time, Peugeot appealed against the ruling in the first instance and Piaggio appeared in the appeal proceedings. On 1 June 2022, Piaggio filed the first defence in which it insisted on rejecting the appeal presented by Peugeot. Peugeot has requested that a new expert witness report be arranged; the request was rejected on 10 January 2023. The Court then set a hearing for 29 May 2024 for the closing argument, which was adjourned to 3 September 2024.
ALZA ITALIA S.r.l. served a writ of summons on Piaggio, requesting the Court of Florence to order the latter to pay compensation for damages allegedly suffered as a result of the seizure of vehicles, owned by Alza Italia, in 2021; according to the plaintiff, this seizure was due to the expert report on the counterfeiting of the vehicles requested from Piaggio by the acting customs authorities. The damages, allegedly suffered as a result of the seizure (and, indirectly, by Piaggio's expert report, considered by the plaintiff to be incorrect), consisted of the impossibility of starting and then continuing the marketing of the seized vehicle models, for a total amount quantified in the writ of summons of €13,078,515.87. Piaggio duly entered an appearance on 3 May 2024; the first hearing will take place on 10 December 2024.

The amounts allocated by the Company for the potential risks deriving from the current disputes appear to be consistent with the predictable outcome of the disputes.

With reference to tax disputes involving Piaggio & C. S.p.A., it should be noted that the dispute concerning the notices of assessment for regional production tax and corporate income tax notified to the company, on 22 December 2017, both relating to the 2012 tax period and containing findings on transfer pricing, is pending. In this regard, it is recalled that the company received a favourable ruling in both the first and second instance. The Attorney General's Office filed an appeal before the Court of Cassation against the second instance decision, which was notified to the company on 13 May 2024, while the latter filed a counter-appeal on 19 May 2024.
With reference to the Indian company, some disputes concerning different years from 2000 to 2022 are ongoing. In particular, with reference to direct taxes, disputes mainly arise from

~ 33 ~

assessments containing transfer pricing findings; while in the case of indirect taxes, the findings refer to the application of import duties and local trade taxes. Taking into account the positive indications of professionals appointed as counsel for the defence, no provision was made in the financial statements. The Indian company has already partly paid the amounts contested, as required by local laws, that will be paid back when proceedings are successfully concluded in its favour.

• With reference to PT Piaggio Indonesia, the company has certain disputes outstanding relating to the 2018, 2019, 2021, 2022 and 2023 tax periods.

In particular, the years disputed by the competent authorities mainly refer to aspects concerning the application of transfer pricing and withholding taxes on alleged payment flows.

With reference to the 2018 and 2019 tax periods, the company filed an appeal with the judicial authorities; a decision is pending.

For the 2021 tax year, the Indonesian tax authorities have filed the same transfer pricing findings as those of 2018 and 2019. The total amount currently under dispute comes to approximately €1 million.

As regards the 2022 tax year, the dispute concerns a higher tax amount of approximately €0.8 million.

Finally, in relation to the 2022 and 2023 tax periods, there are further disputes concerning the non-recognition of duty exemption on certain imports of vehicles originating from Vietnam. The total amount currently subject to disputes amounts to approximately €0.4 million for 2022 and €0.4 million for 2023. With reference to the dispute relating to 2022, the company appealed to the judicial authorities, which ruled against the company; the Indonesian company appealed against this decision. With reference to the finding for the 2023 tax period, the company filed an appeal with the judicial authorities; a decision is pending.

As regards the marine sector (Intermarine S.p.A), it is noted that:

• With reference to the appeal before the Court of Cassation in 2021 by Monte dei Paschi di Siena, against the appeal ruling of 2011 in favour of Intermarine for compounding interest, advance capitalisation of interest expense, advance calculation of interest with debit, annual interest expense rates higher than contractual rates, maximum overdraft fees and application of interest expense to levels different from those agreed, a hearing took place before the Court of Cassation in the first half of 2024, which referred the original sentence in favour of Intermarine to appeal.

Subsequent events and operating outlook

In the absence of further critical factors in the global macroeconomic framework, the Immsi Group will continue to work to meet its commitments and pursue its margin and productivity targets, thanks to the careful and efficient management of its economic and financial structure.

With reference to the property and holding sector, the subsidiary Is Molas S.p.A., in particular, will continue activities aimed at marketing and renting the complex built, and at increasing the resort's customers in its new design proposal for accommodation, golf and the Is Molas Beach Club.

With reference to the business outlook for the industrial sector, Piaggio, thanks to a portfolio of iconic brands, appreciated worldwide as Italian symbols of elegance, sporting style and high technology, confirmed the margins achieved in the last few months, for 2024, regardless of the possible temporary slowdown in some markets.

The current difficulties in international transport linked to the Israeli-Palestinian conflict and the related increase in costs and delivery times will continue to be dealt with through careful management and planning of stock levels and purchasing flows, while maintaining a constant focus on achieving greater efficiency.

In view of this, the investments planned for new products in the two-wheeler and commercial vehicle sectors and the consolidation of the commitment to ESG issues are confirmed. In Italy, major investment plans have been outlined for the next few years, so as to be ready also for the ongoing energy transition. The decision to verticalize the development and production of strategic assets will be key to dealing efficiently with new technologies.

With reference to the marine sector, on 26 July 2024 Intermarine S.p.A. and Leonardo S.p.A. signed - as a Temporary Joint Venture - with NAVARM - the Naval Armaments Directorate of the General Secretariat of Defence and the National Armaments Directorate, a contract for the supply of naval units for mine sweeping and clearance - Cacciamine Nuova Generazione Costieri (CNG/C) and related integrated logistic support, worth 1.6 billion for the construction of 5 units and around 1 billion in options for the completion of the programme.

With reference to the basic 'tranche', Intermarine's share is €1.165 billion, corresponding to approximately 73%, and Leonardo's is €0.430 billion, corresponding to approximately 27%. A similar breakdown also applies to the optional 'tranches'. Intermarine is the lead company, and will be the design authority for the Naval Units, supplying the platform system; Leonardo is the principal, design authority and supplier of the combat system.

The contract is the result of significant investments in R&D for new materials and innovative, stateof-the-art production technologies. In particular, it follows on from intense preliminary studies carried out for the contract signed in 2021 between Intermarine and NAVARM for 'Risk Reduction Studies and the Design Definition of CNG Units'.

The start of the programme will enable the Italian Navy to have highly innovative minesweepers that, thanks to the most modern construction techniques and advanced combat system solutions capable of guaranteeing a high level of integration and automation of operations, will be unique worldwide in terms of operational capabilities and cutting-edge technologies in the specialised sector of assets for control, defence of the seabed and critical underwater infrastructures.

Intermarine's objectives are now focussed on developing the recently acquired contracts and once the required administrative procedures have been completed, on starting the important order with the Italian Navy, which guarantees a significant increase in the orders portfolio and consequently conditions that will optimise production capacity for the coming years. In addition, commercial activities will continue in all the company's operating segments, as it seeks further favourable market opportunities.

Mantova, 5 September 2024 for the Board of Directors

Chief Executive Officer Michele Colaninno

~ 36 ~

Immsi Group

Immsi Group

Condensed Interim Financial Statements

30 June 2024

~ 37 ~

Immsi Group

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024

in thousands of Euros

NON-CURRENT ASSETS
Intangible assets F1 Property, plant and equipment F2	936,601 391,587	922,155 376,055
Investment Property	0	0
Investments F3	7,922	8,502
Other financial assets F4	16	16
Tax receivables F5	8,611	9,689
Deferred tax assets F6	129,943	141,478
Trade receivables and other receivables F7	21,096	19,743
- of which with Related Parties	0	0
TOTAL NON-CURRENT ASSETS	1,495,776	1,477,638
ASSETS HELD FOR DISPOSAL F8	0	0

CURRENT ASSETS
Trade receivables and other receivables F7	211,780	127,866
- of which with Related Parties	1,011	971
Tax receivables F5	23,239	20,802
Inventories F9	476,500	439,659
Other financial assets F4	0	13,075
Cash and cash equivalents F10 TOTAL CURRENT ASSETS	327,059 1,038,578	196,096 797,498

TOTAL ASSETS	2,534,354	2,275,136


LIABILITIES	30 June 2024	31 December 2023
SHAREHOLDERS' EQUITY
Consolidated Group shareholders' equity	231,019	228,840
Capital and reserves of non-controlling interests	180,084	166,427
TOTAL SHAREHOLDERS' EQUITY G1	411,103	395,267

NON-CURRENT LIABILITIES
Financial liabilities G2	680,470	590,285
- of which with Related Parties Trade payables and other payables G3	847 12,360	1,052 12,340
Provisions for severance liabilities and similar obligations G4	26,470	27,512
Other long-term provisions G5	21,152	19,137
Deferred tax liabilities G6	7,328	8,346
TOTAL NON-CURRENT LIABILITIES	747,780	657,620

LIABILITIES ON DISCONTINUED OPERATIONS F9	0	0

CURRENT LIABILITIES
Financial liabilities G2 - of which with Related Parties	471,427 400	445,965 408
Trade payables G3	771,703	660,644
- of which with Related Parties	7,823	6,486
Current taxes G7	18,972	17,651
Other payables G3	95,342	80,714
- of which with Related Parties	8	111
Current portion of other long-term provisions G5	18,027	17,275
TOTAL CURRENT LIABILITIES	1,375,471	1,222,249

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,534,354	2,275,136

CONSOLIDATED INCOME STATEMENT AS AT 30 JUNE 2024

in thousands of Euros

		30.06.2024	30.06.2023
Net revenues (*)	H1	1,013,769	1,182,567
- of which with Related Parties		2	5

Costs for materials	H2	622,064	752,242
- of which with Related Parties		10,271	15,506
Costs for services, leases and rentals (*)	H3	151,191	160,640
- of which with Related Parties		210	395
Employee costs	H4	149,870	150,210
Depreciation and impairment costs of plant, property and equipment	H5	33,207	33,933
Impairment of goodwill		0	0
Amortisation and impairment costs of intangible assets with a finite useful life	H6	37,860	40,973
Other operating income	H7	90,711	84,502
- of which with Related Parties		102	160
Net reversals (impairment) of trade and other receivables	H8	(1,338)	(2,262)
Other operating costs	H9	13,847	18,304
- of which with Related Parties		5	2
OPERATING INCOME (EBIT)		95,103	108,505
Income/(loss) from investments	H10	(667)	139
Financial income	H11	7,452	16,097
Borrowing costs	H12	46,679	46,637
- of which with Related Parties		26	23
PROFIT BEFORE TAX		55,209	78,104
Taxes	H13	23,020	31,031
PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS		32,189	47,073
Gain (loss) from assets held for sale or disposal	H14	0	0
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS		32,189	47,073
Earnings for the period attributable to non-controlling interests		20,703	27,505
GROUP PROFIT (LOSS) FOR THE PERIOD	H15	11,486	19,568

EARNINGS PER SHARE

In Euros

From continuing and discontinued operations:	30.06.2024	30.06.2023
Basic Diluted	0.034 0.034	0.057 0.057

From continuing operations:	30.06.2024	30.06.2023
Basic Diluted	0.034 0.034	0.057 0.057

Average number of shares: 340,530,000 340,530,000

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AS AT 30 JUNE 2024

in thousands of Euros

	30.06.2024	30.06.2023
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS	32,189	47,073
Items that will not be reclassified in the income statement Profit (loss) arising from the fair value measurement of assets and liabilities recognised in the statement of comprehensive income ("FVTOCI")	2,597	2,235
Actuarial gains (losses) on defined benefit plans	685	33
Total	3,282	2,268
Items that may be reclassified in the income statement Effective portion of profit (losses) from instruments to hedge cash flows Profit (loss) deriving from the translation of financial statements of foreign companies denominated in foreign currency	1,063 1,719	(5,905) (2,086)
Share of subsidiaries/associates valued with the equity method	87	(744)
Total	2,869	(8,735)

Other Consolidated Comprehensive Income (Expense)	6,151	(6,467)

TOTAL COMPREHENSIVE PROFIT (LOSS) FOR THE PERIOD	38,340	40,606
Comprehensive income of minority interests	22,434	23,237
COMPREHENSIVE GROUP PROFIT (LOSS) FOR THE PERIOD	15,906	17,369

The values presented in the table are all stated net of the corresponding fiscal effect.

~ 40 ~

Immsi Group

STATEMENT OF CONSOLIDATED CASH FLOWS AS AT 30 JUNE 2024

in thousands of Euros

In thousands of Euros		30.06.2024	30.06.2023

Operating activities
Profit before tax		55,209	78,104
Depreciation of property, plant and equipment (including investment property)	H5	33,207	33,842
Amortisation of intangible assets	H6	37,860	40,973
Provisions for risks and for severance indemnity and similar obligations	H4 - H9	13,077	16,876
Write-downs (reversals of fair value measurements)	H7 – H8 –	1,338	2,300
	H9
Losses / (Gains) on the disposal of property, plant and equipment (including investment	H7 - H9	(579)	(2,187)
property)
Financial income	H11	(1,078)	(1,654)
Dividend income	H11	(34)	0
Borrowing costs	H12	39,022	31,582
Amortisation of grants	H7	(2,616)	(3,080)
Portion of earnings before taxes of affiliated companies (and other companies valued using	H10	667	(139)
the equity method)

Change in working capital:
(Increase) / Decrease in trade receivables and other receivables	F8	(71,581)	(76,407)
(Increase)/Decrease in inventories	F10	(36,841)	2,973
Increase / (Decrease) in trade and other payables	G3	118,522	2,447
(Increase) / Decrease in contract work in progress	F8	(15,023)	(82)
Increase/(Decrease) in provisions for risks	G5	(5,649)	(6,704)
Increase / (Decrease) in provisions for severance liabilities and similar obligations	G4	(5,492)	(6,324)
Other changes		(3,316)	(5,500)
Cash generated from operating activities		156,693	107,020
Interest paid		(32,988)	(26,411)
Taxes paid		(12,277)	(13,389)
Cash flow from operations		111,428	67,220

Investing activities
Acquisition of subsidiaries, net of cash and cash equivalents	F4	0	(158)
Investment in property, plant and equipment (including investment property)	F2	(35,545)	(25,834)
Sale price, or repayment value, of plant, property and equipment (including investment	F2	934	2,483
property)
Investment in intangible assets	F1	(51,400)	(45,091)
Sale price, or repayment value, of intangible assets	F1	42	43
Sale price of financial assets	F4	9,466	0
Collected interests		892	1,640
Public grants collected		772	466
Cash flow from investing activities		(74,839)	(66,451)

Financing activities
Change in other financial assets	F4	6,205	0
Loans received	G2	207,372	121,386
Outflow for repayment of loans	G2	(89,554)	(80,080)
Reimbursement of rights of use	G2	(5,464)	(5,111)
Outflow for dividends paid to Parent company Shareholders	G1 - N	(8,514)	(13,281)

Outflow for dividends paid to non-controlling interests		(13,990)	(17,528)
Cash flow from financing activities		96,055	5,386

Increase / (Decrease) in cash and cash equivalents		132,644	6,155
Opening balance		193,552	263,513

Exchange differences		847	(2,184)
Closing balance		327,043	267,484

CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY AS AT 30 JUNE 2024

in thousands of Euros

Share capital	Reserves and retained earnings (losses)	Earnings for the period	Shareholders' equity attributable to the Group	Capital and reserves of non controlling interests	Shareholders' equity attributable to the Group and non controlling interests
178,464	34,713	27,087	240,265	168,591	408,856
	1,022	(1,022)	0		0
	0	(13,281)	(13,281)	(17,528)	(30,809)
	12,784	(12,784)	0		0
	(80)		(80)	(78)	(158)
	(3,127)		(3,127)	3,127	0
	(2,199)	19,568	17,369	23,237	40,606
178,464	43,113	19,568	241,146	177,349	418,495

	Share capital	Reserves and retained earnings (losses)	Earnings for the period	Shareholders' equity attributable to the Group	Capital and reserves of non controlling interests	Shareholders' equity attributable to the Group and non controlling interests
Balances at 31 December 2023	178,464	31,294	19,082	228,841	166,426	395,267
Allocation of Group earnings to the Legal Reserve		824	(824)	0		0
Allocation of Group earnings to Dividends		0	(8,514)	(8,514)	(13,990)	(22,504)
Allocation of Group earnings to Retained Earnings/Losses		9,744	(9,744)	0		0
Other changes		(5,213)		(5,213)	5,213	0
Overall earnings for the period		4,420	11,486	15,906	22,434	38,340
Balances at 30 June 2024	178,464	41,069	11,486	231,019	180,084	411,103

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2024

Note	Description
A	General aspects
B	Scope of consolidation
C	Basis of consolidation
D	Accounting standards and measurement criteria
E	Segment reporting
F	Information on main assets
F1	Intangible assets
F2	Property, plant and equipment
F3	Investments
F4	Other financial assets
F5	Tax receivables
F6	Deferred tax assets
F7	Trade receivables and other receivables
F8	Assets/liabilities related to assets held for disposal
F9	Inventories
F10	Cash and cash equivalents
G	Information on main liabilities
G1	Shareholders' equity
G2	Financial liabilities
G3	Trade payables and other payables
G4	Provisions for severance liabilities and similar obligations
G5	Other long-term provisions
G6	Deferred tax liabilities
G7	Current taxes
H	Information on main Income Statement items
H1	Net revenues
H2	Costs for materials
H3	Costs for services, leases and rentals
H4	Employee costs
H5	Depreciation and impairment costs of plant, property and equipment
H6	Amortisation and impairment costs of intangible assets with a finite useful life
H7	Other operating income
H8	Net reversals (impairment) of trade and other receivables
H9	Other operating costs
H10	Income/(loss) from investments
H11	Financial income
H12	Borrowing costs
H13	Taxes
H14	Gain (loss) from assets held for disposal or sale
H15	Group profit/loss for the period
I	Commitments, risks and guarantees
L	Related Party Transactions
M	Net debt
N	Dividends paid
O	Earnings per share
P	Additional information on financial instruments

- A) - GENERAL ASPECTS

Immsi S.p.A. (the "Company" or the "Parent Company") is a limited company established under Italian law and has registered offices in Mantua - P.zza Vilfredo Pareto, 3 Centro Direzionale Boma. The main activities of the Company and its subsidiaries (the "Immsi Group" or the "Group"), and information on significant events after 30 June 2024 and operating outlook are described in the Half-Yearly Financial Report. As at 30 June 2024, Immsi S.p.A. was directly and indirectly controlled, pursuant to article 93 of the TUF, by Omniaholding S.p.A., a company wholly owned by the Colaninno family, through the subsidiary Omniainvest S.p.A.

The condensed interim financial statements of the Immsi Group include the financial statements of the Parent Company Immsi S.p.A. and the Italian and international companies directly and indirectly controlled by it, approved where required by the relevant corporate functions of the respective companies, suitably reclassified and adjusted where necessary to adapt them to the Group's accounting principles.

The financial statements are expressed in Euro since that is the currency in which most of the Group's transactions take place.

The amounts in the above schedules and in the Notes on the consolidated financial statements are stated in thousands of Euros (if not otherwise indicated).

It should be noted that the Group's business presents significant seasonal variations in sales over the course of the year, especially in the industrial sector and, to a limited extent, in the tourist-hotel sector.

These condensed consolidated interim financial statements are subject to limited review by the independent auditors Deloitte & Touche S.p.A. pursuant to the mandate granted by the Shareholders' Meeting on 14 May 2020 for the period 2021-2029.

COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS

These Condensed Interim Financial Statements have been drafted in compliance with the International Accounting Standards (IAS/IFRS) in force at that date, issued by the International Accounting Standards Board and endorsed by the European Commission, in particular IAS 34 "Interim Financial Reporting", as well as in compliance with the provisions established in Article 9 of Legislative Decree no. 38/2005 (CONSOB Resolution no. 15519 dated 27 July 2006 containing the "Provisions for the presentation of financial statements", CONSOB Resolution no. 15520 dated 27 July 2006 containing the "Changes and additions to the Regulation on Issuers adopted by Resolution no. 11971/99", CONSOB communication no. 6064293 of 28 July 2006 containing the "Corporate reporting required in accordance with Article 114, paragraph 5 of Legislative Decree 58/98").

The financial statements have been prepared on a going concern basis with reference to a future period of 12 months from 30 June 2024. In relation to the forecasts drawn up concerning the financial requirements, deriving mainly from investment activities and the management of net working capital, taking into account the credit lines maturing during the year and the financial commitments that the Company has undertaken to meet in order to support the development of its initiatives, the Directors have taken, and will take in the coming months, actions aimed at finding solutions that will guarantee financial balance, including the renewal of short-term credit lines, also taking into consideration the risk of a possible scenario of uncertainty on the stock markets, constantly monitored by Company Management, with possible consequences on the size of credit lines currently granted to the Company, largely guaranteed by Piaggio shares held by the latter. In this regard, it should be noted that the current share price of the Piaggio stock makes it possible to confirm the guarantees in place

for all related loans. Furthermore, as at 30 June 2024, approximately 7.5 million Piaggio shares remain free of guarantee and can therefore potentially be used to obtain new credit lines.

The preparation of the interim financial statements requires the company Management to make estimates and assumptions that affect, among other things, the reported amounts of revenues, expenses, assets and liabilities recorded and disclosure of contingent assets and liabilities at the date of the end of the period. If in the future such estimates and assumptions, made by management based on the best information available at the date of the consolidated interim financial statements, were to deviate from the actual circumstances, the original estimates and assumptions would be modified as appropriate in the period in which the circumstances occurred.

For a more detailed description of the most significant measurement methods of the Group, reference is made to the section "Accounting standards and measurement criteria – Use of estimates" in the Consolidated Financial Statements of the Immsi Group as at 31 December 2023.

In addition, some evaluative processes, particularly the more complex ones such as the determination of any losses in value of fixed assets ("impairment"), are generally carried out completely only at the time of drawing up the annual financial statements, when all the potentially necessary information is available, saving the cases in which there are indicators that require immediate evaluation of possible losses of value.

In this regard, it should be noted that when preparing this Half-Yearly Financial Report as at 30 June 2024, the Group's management carried out consolidated-level sensitivity analyses and specific calculations on the impairment tests concerning the carrying value of the goodwill recognised. These showed that there was no need to update the impairment test prepared and approved as at 31 December 2023 for any of the CGUs under assessment.

FORM AND CONTENT OF THE CONSOLIDATED FINANCIAL STATEMENTS

The Group has chosen to highlight all changes generated by transactions with non-shareholders within two statements reporting trends of the period, respectively named the "Consolidated Income Statement" and "Consolidated Statement of Comprehensive Income". These Condensed Interim Financial Statements are therefore composed of the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Cash Flow Statement and these Notes to the consolidated financial statements.

With reference to Consob Resolution no. 15519 of 27 July 2006 it is pointed out that, as regards the financial schedules, specific Income statement and Statement of financial position schedules have been inserted with the evidence of significant Related Party transactions.

No significant, non-recurring operations, as defined by Consob Communication DEM/6064293 of 28 July 2006 took place during the first half of 2023 and 2024.

Moreover, there were no significant atypical transactions during the first half of 2024 and of the corresponding period of the previous year, as defined in Consob Communication no. DEM/6037577 of 28 April 2006 and no. DEM/6064293 of 28 July 2006.

Consolidated income statement

The Consolidated income statement is presented with the items classified by nature. The overall Operating Income is shown, which includes all income and cost items, irrespective of their repetition or fact of falling outside normal operations, except for the items of financial operations included under Operating Income and Profit before tax. In addition, the income and cost items arising from assets that are held for disposal or sale, including any capital gains or losses net of the tax element, are recorded in a specific item of the consolidated statement of financial position which precedes profit (loss) for the period including minority interests.

~ 45 ~

Consolidated Statement of Comprehensive Income

The Consolidated Statement of Comprehensive Income is presented as provided for in IAS 1 revised. It requires income attributable to owners of the parent and to non-controlling interests to be recognised net of the corresponding tax effect. In this respect, it should be noted that on 16 June 2011, the IASB issued an amendment to IAS 1 – Presentation of financial statements to require entities to group all items presented in Other comprehensive income based on whether they are potentially reclassifiable to profit or loss.

Consolidated statement of financial position

The Consolidated statement of financial position is presented in opposite sections with separate indication of assets, liabilities, and shareholders' equity. In turn, assets and liabilities are reported in the Consolidated Financial Statements on the basis of their classification as current and non-current. In addition, assets held for sale and liabilities associated with assets held for sale are recognised in a separate item.

Consolidated Statement of Cash Flows

The Consolidated Statement of Cash Flows is divided into cash-flow generating areas. The Consolidated Statement of Cash Flows model adopted by the Immsi Group has been prepared using the indirect method. The cash and cash equivalents recorded in the Statement of Cash Flows include the Consolidated Statement of Financial Position balances for this item at the reporting date. Financial flows in foreign currency have been converted at the average exchange rate for the period. Income and costs related to interest, dividends received and income taxes are included in the cash flow generated from operations.

Statement of changes in consolidated shareholders' equity

The Statement of Changes in consolidated Shareholders' equity is presented as required by IAS 1 revised. It includes the total statement of comprehensive income while separately reporting the amounts attributable to owners of the Parent company as well as the quota pertaining to noncontrolling interests, the amounts of operations with shareholders acting in this capacity and potential effects of retrospective application or of the retroactive calculation pursuant to IAS 8. For each item, a reconciliation between the balance at the start and end of the period is presented.

Other information

The following exchange rates were used to translate the financial statements of companies included in the scope of consolidation into Euros:

	Exchange rate at 28 June 2024	Average exchange rate 1st half of 2024	Exchange rate at 31 December 2023	Average exchange rate 1st half of 2023
US Dollar	1.0705	1.08125	1.1050	1.08066
Pound Sterling	0.84638	0.854647	0.86905	0.876377
Indian Rupee	89.2495	89.98621	91.9045	88.84427
Singapore Dollars	1.4513	1.45606	1.4591	1.44403
Chinese Yuan	7.7748	7.80111	7.8509	7.48943
Japanese Yen	171.94	164.46135	156.33	145.76039
Vietnamese Dong	27,250.00	26,981.06349	26,808.00	25,425.00
Indonesian Rupiah	17,487.21	17,205.14730	17,079.71	16,275.09142
Brazilian Real	5.8915	5.49221	5.3618	5.48269

- B - SCOPE OF CONSOLIDATION

As at 30 June 2024, the Immsi Group structure was that attached at the end of these Notes. As at 30 June 2024, the scope of consolidation was unchanged compared to 31 December 2023, while compared to 30 June 2023:

the portion of the Piaggio group's consolidated shareholders' equity as at 30 June 2024 was 50.63%, up from 50.57% as at 30 June 2023. The change is the result of the cancellation of 3,521,595 treasury shares held by the company (keeping the share capital unchanged) and the purchase by the subsidiary Piaggio & C. S.p.A. of 426,161 treasury shares; events that occurred during the 2023 financial year;
With the Shareholders' Meeting's approval of the financial statements for liquidation purposes, the liquidation of the direct subsidiary Pietra S.r.l. (77.78% owned by Immsi S.p.A. and 22.22% owned by Intesa Sanpaolo S.p.A.) was finalised on 27 July 2023.

These changes are limited and did not affect the comparability of the balance sheet and income statement between the two reporting periods.

- C - CONSOLIDATION PRINCIPLES

In preparing these Condensed Interim Financial Statements of the Immsi Group, drawn up, as mentioned, in compliance with IAS 34 – Interim Financial Reporting, the accounting standards used to prepare the Consolidated Financial Statements as at 31 December 2023, to which reference is made for more details, were adopted, save for information in the next section on Accounting standards and measurement criteria.

Immsi Group

- D - ACCOUNTING STANDARDS AND MEASUREMENT CRITERIA

New IFRS accounting standards, amendments and interpretations adopted from 1 January 2024

The following IFRS accounting standards, amendments and interpretations were applied for the first time by the Group at 1 January 2024:

On 23 January 2020, the IASB published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Noncurrent" and on 31 October 2022 published an amendment called "Amendments to IAS 1 Presentation of Financial Statements: Non-Current Liabilities with Covenants". These amendments aim to clarify how to classify debts and other short or long term liabilities. In addition, the amendments also improve the information that an entity must provide when its right to defer the extinguishing of a liability for at least twelve months is subject to compliance with certain parameters (i.e. covenants).
On 22 September 2022, the IASB published an amendment called "Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback". The document requires the seller-lessee to measure the lease liability arising from a sale and leaseback transaction so as not to recognise an income or loss that relates to the retained right of use.
On 25 May 2023, the IASB published an amendment entitled "Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements". The document requires an entity to provide additional disclosures about reverse factoring arrangements that enable users of financial statements to evaluate how financial arrangements with suppliers may affect the entity's liabilities and cash flows and to understand the effect of those arrangements on the entity's exposure to liquidity risk.

The application of the new amendments did not have a significant impact on values or on the financial statements.

IFRS accounting standards, amendments and interpretations not yet endorsed by the European Union

At the reference date of this document, the competent bodies of the European Union had not yet completed the endorsement process necessary for the adoption of the amendments and principles described below.

On 15 August 2023, the IASB published "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". This amendment requires an entity to adopt a methodology to be applied in a consistent manner in order to verify whether one currency can be converted into another and clarifies, when this is not possible, how to determine the exchange rate to be used and the disclosure to be provided in the notes to the financial statements. The amendments will apply from 1 January 2025, but early adoption is permitted.
On 9 April 2024, the IASB published a new standard IFRS 18 Presentation and Disclosure in Financial Statements that will replace IAS 1 Presentation of Financial Statements. The new standard aims to improve the presentation of the main financial statements and introduces important changes with regard to the income statement. In particular, the new principle requires the following:
- o Classify revenues and expenses into three new categories (operating, investing and financing), in addition to the income taxes and discontinued operations categories already present;
- o Present two new sub-totals, operating profit and earnings before interest and taxes (i.e. EBIT).

~ 48 ~

The new standard also:

o Requires greater disclosure on the performance indicators defined by management;
o introduces new criteria for the aggregation and disaggregation of information; and
o introduces a number of changes to the format of the cash flow statement, including the requirement to use the operating result as the starting point for the presentation of the cash flow statement prepared under the indirect method and the elimination of certain classification options for some line items that currently exist (such as interest paid, interest received, dividends paid and dividends received).

The new standard will come into force on 1 January 2027, but earlier application is permitted.

On 30 May 2024, the IASB published 'Amendments to the Classification and Measurement of Financial Instruments-Amendments to IFRS 9 and IFRS 7'. The document clarifies a number of problematic issues that arose from the post-implementation review of IFRS 9, including the accounting treatment of financial assets whose returns vary when ESG objectives are met (i.e. green bonds). In particular, the amendments aim to:
- o clarify the classification of financial assets with variable returns and which are linked to environmental, social and corporate governance (ESG) objectives and the criteria to be used for the SPPI test;
- o determine that the date of settlement of liabilities through electronic payment systems is the date on which the liability is extinguished. However, an entity is permitted to adopt an accounting policy to allow a financial liability to be derecognised before delivering cash on the settlement date if certain specific conditions are met.

With these amendments, the IASB also introduced additional disclosure requirements with regard to investments in equity instruments designated at FVOCI.

The amendments will apply starting from financial statements for financial years commencing on or after 1 January 2026.

The Group will adopt these new standards, amendments and interpretations, based on the application date indicated, and will evaluate potential impact, when the standards, amendments and interpretations are endorsed by the European Union.

- E - SEGMENT REPORTING

The information for operating segments presented below reflects the internal reporting system used by management for making strategic decisions, as provided for by IFRS 8, in line with the management and control model used. Information is provided, where available, on the three identified segments: property and holding, industrial and marine.

Information by business areas

Income statement

	Property and holding	Industrial sector	Marine sector	Immsi Group
In thousands of Euros	sector
Net sales to third parties	1,115	990,298	22,356	1,013,769
NET REVENUES	1,115	990,298	22,356	1,013,769

OPERATING INCOME (EBIT)	-4,818	104,094	-4,173	95,103
Income/(loss) from investments	0	-667	0	-667
Financial income	15	7,376	61	7,452
Borrowing costs	10,815	33,027	2,837	46,679
PROFIT BEFORE TAX	-15,618	77,776	-6,949	55,209
Taxes	-1,036	25,666	-1,610	23,020
PROFIT (LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	-14,582	52,110	-5,339	32,189
Gain (loss) from assets held for sale or disposal	0	0	0	0
PROFIT (LOSS) FOR THE PERIOD INCLUDING MINORITY INTERESTS	-14,582	52,110	-5,339	32,189
Earnings for the period attributable to non-controlling interests	-3,557	25,728	-1,468	20,703
GROUP PROFIT (LOSS) FOR THE PERIOD	-11,025	26,382	-3,871	11,486