Neodecortech — Interim / Quarterly Report 2025

Aug 6, 2025

Consolidated Half-Year Report at 30 June 2025

Financial Statements prepared in accordance with IAS/IFRS

Amounts in Euro

Neodecortech S.p.A. Via Provinciale 2 24040 Filago, Bergamo

Tel +39 035996111 Fax +39 035995225 info@neodecortech.it

Tax Code and Company Register 00725270151 VAT CODE IT 02833670165 R.E.A. BG - 193331

Share Capital € 18,804,209.37 fully paid up www.neodecortech.it

Table of Contents

Consolidated Half-Year Report at 30 June 2025 ____________ 1
The Neodecortech Group ____________ 5
Corporate bodies ____________ 6
Group structure ______________ 8
Financial highlights of the Neodecortech Group _______ 9
Directors' Report on Operations ____________ 14
Impacts from the conflict in Ukraine _________ 16
The international economic environment ___________ 16
Relevant segment and comments on operations ___________ 19
Key balance sheet, financial and income figures __________ 21
Consolidated results of the Neodecortech Group ___________ 22
Reclassified consolidated income statement ________ 22
Reclassified consolidated statement of financial position ___________ 24
Key results by operating segment ___________ 26
Main Alternative Performance Measures (APMs) ___________ 31
Main risks and uncertainties to which Neodecortech S.p.A. and the Group are exposed _____ 32
Corporate Governance _____________ 37
Related party transactions __________ 38
Capital expenditure __________ 38
Research & Development ___________ 38
Information on the environment, safety and health and, more generally, on ESG topics _____ 39
Human resources and organization _________ 42
Atypical and/or unusual transactions during the year ________ 43
Significant events after 30 June 2025 ________ 43
Compliance with the simplified system under Articles 70 and 71 of the Issuer Regulation ____ 43
Treasury shares and shares of the Parent Company ________ 43
Other information ___________ 43
Business and market outlook ______________ 44
Condensed consolidated half-year financial statements at 30 June 2025 ________ 47
Consolidated income statement at 30 June 2025 ___________ 48
Consolidated statement of comprehensive income at 30 June 2025 ________ 48
Consolidated statement of financial position at 30 June 2025 _______ 49
Consolidated statement of changes in equity at 30 June 2025 _______ 50
Consolidated statement of cash flows at 30 June 2025 ______ 51

Explanatory Notes to the Consolidated Financial Statements of the Group ______ 53
Entity preparing the consolidated financial statements _______ 54
General criteria for the preparation of the consolidated financial statements ________ 54
Consolidation methods _____________ 55
Subjective evaluations and use of estimates ________ 57
Segment reporting __________ 59
Management of financial risks ______________ 62
Consolidated income statement ____________ 65
Assets ______________ 70
Liabilities ____________ 78
Other supplementary information ___________ 88

The Neodecortech Group

Corporate bodies

Board of Directors (1) Chairman Gianluca Valentini Director, Chief Executive Officer Luigi Cologni Executive Director Massimo Giorgilli Non-Executive Director Vittoria Giustiniani Independent Non-Executive Director Cinzia Morelli* Independent Non-Executive Director Francesco Megali* Independent Non-Executive Director Monica Girardi*

(*) Independent Director pursuant to Article 148 of the TUF and Article 2 of the Corporate Governance Code adopted by the Corporate Governance Committee of Borsa Italiana S.p.A. to which the Company adheres.

Board of Statutory Auditors (2)

Chair Edda Delon Alternate Auditor Pier Paolo Gori

Financial Reporting Manager (3) Marina Fumagalli

Committees (4) Remuneration and Appointments Committee Monica Girardi (Chair)

Control, Risk and Sustainability Committee Francesco Megali (Chairman)

Standing Auditor Stefano Santucci Standing Auditor Federica Menichetti Alternate Auditor Riccardo Losi

Vittoria Giustiniani Cinzia Morelli

Related Party Committee Cinzia Morelli (Chair)

Lead Independent Director (5) Francesco Megali

Cinzia Morelli Vittoria Giustiniani

Monica Girardi Francesco Megali

Supervisory Board (6) Ettore Raspadori (Chairman) Federica Menichetti (7) Laura Bellezza

Independent Auditors (8) BDO Italia S.p.A.

(1) The Board of Directors of Neodecortech S.p.A. in office was appointed on 29 April 2025 and will remain in office for three financial years until the Shareholders' Meeting called to approve the financial statements for the year ending 31 December 2027.

(2) The Company's Board of Statutory Auditors was appointed on 27 April 2023 and will remain in office until the date of the Shareholders' Meeting called to approve the financial statements for the year ended 31 December 2025.

(3) Marina Fumagalli was appointed by the Board of Directors on 07 February 2023 as the Financial Reporting Manager pursuant to Article 154-bis of the TUF.

(4) The Board of Directors of Neodecortech S.p.A. resolved on 29 April 2025 to establish (i) a Remuneration and Appointments Committee; (ii) a Control, Risk and Sustainability Committee; (iii) a Related Party Committee.

(5) The Board of Directors of Neodecortech S.p.A. passed a resolution on 5 May 2023 appointing Mr. Raspadori and Ms. Menichetti as members of the Supervisory Board of the Company for three financial years, therefore, until the Shareholders' Meeting called to approve the financial statements for the year ending 31 December 2025. On 05 May 2023, the Board of Directors appointed Laura Bellezza as a member of the SB of the Company.

(6) Ms. Menichetti also holds the position of standing auditor of Neodecortech S.p.A.

(7) The nine-year statutory audit assignment pursuant to Article 17 of Legislative Decree 39/2010 of the Italian Civil Code for the financial years 2020-2028 was granted by the Ordinary Shareholders' Meeting on 9 December 2019.

Group structure

The Group's structure at 30 June 2025 and at 31 December 2024 is shown below.

Neodecortech S.p.A.	100%	Bio Energia Guarcino S.r.l. Cartiere di Guarcino S.p.A. 100%
	100%	NDT energy S.r.l. (dormant)
	70%	Changzhou NDT new material technology company Ltd
		(Acquired on 15 May 2024)

At 30 June 2025, the Group companies are:

NDT

Neodecortech S.p.A. ("NDT" or "Parent Company")

registered and operating offices in Filago (BG) and other operating offices in Casoli d'Atri (TE), heads up the core business of the Group and is active in the printing and impregnation of paper, in the printing and finishing of thermoplastic film, and in "laminates" produced mainly at the Casoli headquarters. Neodecortech's goal is to act as a highly proactive decoration partner for its customers in the interior design and flooring industry, through constant monitoring and interpretation of new stylistic trends.

The Parent Company performs the following functions for its subsidiaries:

• (i) legal and corporate affairs,
• (ii) administration and investments,
• (iii) strategic planning and business development,
• (iv) Internal Audit, Compliance & Risk Management.

CDG

Cartiere di Guarcino S.p.A. (CDG)

registered office in Guarcino (FR), specializes in the production of decorative papers that subsequently undergo other stages of processing: printing or directly impregnation with thermosetting resins and hot pressing. The company operates on the national and international markets through a network of agents.

BEG

Bio Energia Guarcino S.r.l. (BEG)

registered office in Guarcino (FR), owns the cogeneration plant in operation since May 2010 for the selfproduction of electrical and thermal energy powered by renewable sources that satisfies a large part of the energy needs of CDG.

NDTe

NDT energy S.r.l. (NDTe)

established on 19 October 2022, registered office in Filago (BG) and operating offices in Casoli di Atri (TE), currently dormant and awaiting authorization to operate a WtE plant, capable of reusing process waste and meeting a large part of the energy needs of the adjacent NDT "laminates" division.

NDTchina

Changzhou NDT new material technology company Ltd (NDT china)

established in 2023, registered office in Changzhou - China and acquired 70% on 15 May 2024. It markets printed decorative paper sold on the local and Far East markets.

Financial highlights of the Neodecortech Group

Income statement

The table below shows the main consolidated income statement figures:

(Euro thousands)	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Revenue from sales and services	90,425	100.0%	85,285	100.0%	5,140	6.0%
Other revenue	919	1.0%	1,015	1.2%	(96)	(9.5%)
Total revenue	91,344	101.0%	86,300	101.2%	5,044	5.8%
EBITDA	9,237	10.2%	6,880	8.1%	2,357	34.3%
Amortization and depreciation	4,856	5.4%	4,399	5.2%	457	10.4%
Allocations	35	0.0%	36	0.0%	(1)	0.0%
EBIT	4,346	4.8%	2,445	2.9%	1,901	77.8%
Profit for the year	2,767	3.1%	1,205	1.4%	1,562	129.6%

For comments on changes, see the paragraph "CONSOLIDATED INCOME STATEMENT" in the Directors' Report on Operations.

Financial results

The table below shows the main consolidated financial indicators:

(Euro thousands)	30 JUNE 2025	31 DECEMBER 2024	Chg. % chg.
Net Working Capital	47,333	42,491	4,842 11.4%
Equity	81,059	80,725	334 0.4%
Net Financial Debt	(36,708)	(33,093)	3,615 (10.9%)

For comments on changes, reference should be made to the section "RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION" in this Directors' Report on Operations.

Below are the balance sheet figures at 30 June 2025 versus 30 June 2024.

(Euro thousands)	30 JUNE 2025	30 JUNE 2024	Chg.	% chg.
Net Working Capital	47,333	47,036	297	0.6%
Equity	81,059	78,306	2,753	3.5%
Net Financial Debt	(36,708)	(38,482)	(1,774)	4.6%

Net financial debt decreased by € 1.8 million versus 30 June 2024 from € 38.5 million to € 36.7 million.

At 30 June 2024, the value was impacted by the non-collection of maximization receivables and GMPs totaling € 19 million versus € 10.5 million at 30 June 2025, of which € 1.6 million related to the reinstatement of fixed costs under the so-called "Maximization Scheme" and € 8.9 million under the "Guaranteed Minimum Prices" scheme. Net of these effects, the NFP in 2025 was affected by cash outflows used to finance working capital, particularly inventory, and by the planned investments in the 2025 budget, including for the new ERP system.

The table below shows consolidated revenue by operating segment.

(Euro thousands)	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Printed Decorative Paper Division	34,926	39%	35,350	41%	(424)	(1.2%)
Decorative Paper Division	27,735	31%	31,541	37%	(3,806)	(12.1%)
Guarcino Energy Division	27,689	31%	18,380	22%	9,309	50.6%
Casoli Energy Division	0	0%	0	0%	0	0.0%
NDT China Division	75	0%	14	0%	61	435.7%
Total	90,425	100%	85,285	100%	5,140	6.0%

For comments on the performance of each division, see the section "KEY RESULTS BY OPERATING SEGMENT" in the Directors' Report on Operations.

The table below shows consolidated revenue by geographical area:

(Euro thousands)	30 JUNE 2025		% 30 JUNE 2024	%	Chg.	% chg.
		27.4%		33.7%	(3,977)	(13.8%)
Italy Europe	24,745 31,602	34.9%	28,722 32,590	38.2%	(989)	(3.0%)
Asia	2,157	2.4%	585	0.7%	1,571	268.6%
Middle East	361	0.4%	324	0.4%	37	11.6%
America	3,424	3.8%	3,929	4.6%	(505)	(12.9%)
Africa	447	0.5%	754	0.9%	(307)	(40.7%)
Energy Division	27,689	30.6%	18,380	21.6%	9,309	50.6%
Total	90,425	100.0%	85,285	100.0%	5,140	6.0%

Assuming the contribution to revenue from the Energy Division is considered separately, both the table and the chart show that the steepest decline occurred in the Italian market. In Europe, by contrast, sales in the Decorative Paper Division and Printed Decorative Paper Division remained broadly stable. Sales in the Asian market increased, partly as a result of the acquisition of the Loma Srl business unit last year. The decrease in America can be attributed to the general decline in demand in the flooring industry, which affected a major North American customer.

Directors' Report on Operations

Shareholders,

Submitted to your attention are the Consolidated Half-Year Financial Statements at 30 June 2025 of the Neodecortech Group (hereinafter also "the Group"), prepared in accordance with the IAS/IFRS international accounting standards and accompanied by this Report, outlining the Group's performance in first half 2025 as well as the future outlook.

The period under review closes with a consolidated profit of € 2,767 thousand (€ 1,205 thousand at 30 June 2024), after amortization, depreciation and provisions of € 4,891 thousand (€ 4,435 thousand at 30 June 2024), and income tax of € 409 thousand (€ 167 thousand at 30 June 2024).

This Report, drawn up with amounts expressed in Euro thousands, is presented together with the consolidated half-year financial statements in order to provide income, financial and operating information of the Group.

Below are the trends, uncertainties, demands, commitments or known facts that could be reasonably expected to affect the Group's outlook.

Impacts from the conflict in Ukraine

With regard to the CONSOB notices of 7 March 2022 and of 19 May 2022, aimed at compliance with the restrictive measures adopted by the EU in response to the Russian military aggression in Ukraine and its potential effects on the company's business, it should be noted that the Company is complying with all the measures introduced by the European Union. The Group has implemented and reinforced specific business continuity plans from an IT standpoint.

All Group Companies are fully operational.

The international economic environment

The ECB paper dated June 2025 on macroeconomic projections shows the following.

The outlook for euro area economic growth is clouded by trade tensions and elevated global uncertainty. For 2025 as a whole, these effects are seen to be partly compensated by stronger than expected economic activity in the first quarter, which likely reflects in part the frontloading of exports in anticipation of higher tariffs. In the medium term, economic activity is seen to be supported by the recently announced new fiscal measures. The baseline assumes that US tariffs on EU goods, which have increased to 10%, will remain in place over the entire projection horizon. An agreement in principle was reached on 27.07, setting general US duties toward EU goods at 15%. Together with the elevated trade policy uncertainty and the recent appreciation of the euro, the higher tariffs will weigh on euro area exports and investment, and, to a lesser extent, on consumption.

By contrast, new government spending on infrastructure and defence, mainly in Germany, should bolster euro area domestic demand from 2026. Overall, the conditions remain in place for euro area GDP growth to strengthen over the projection horizon. In particular, rising real wages and employment, less restrictive financing conditions – mainly reflecting recent monetary policy decisions – and a rebound in foreign demand later in the horizon should all support a gradual recovery. Annual average real GDP growth is expected to be 0.9% in 2025, 1.1% in 2026 and 1.3% in 2027.

Compared with the March 2025 ECB staff macroeconomic projections, the outlook for GDP growth is unrevised for 2025, reflecting better than expected incoming data which are seen to be largely offset by the effects of the trade tensions and the appreciation of the euro exchange rate. The trade tensions and the stronger exchange rate have resulted in a downward revision to growth for 2026, while growth is unrevised for 2027.

While headline inflation, as measured by the Harmonized Index of Consumer Prices (HICP), is likely to stay below 2% in the near term, it is expected to return to target in the medium term. Inflation is projected to decline in the course of 2025 and to reach a trough of 1.4% in the first quarter of 2026, before returning to 2.0% in 2027. The decline in headline inflation over 2025 is seen to be driven in part by negative energy inflation following the recent decline in oil prices and wholesale natural gas prices. Energy inflation is expected to remain negative until 2027 when new climate change mitigation measures come into effect in the context of the new Emissions Trading System (ETS2). Following a temporary increase in the second quarter of 2025, food inflation is expected to fall to rates slightly above 2% in 2027. HICP inflation excluding energy and food (HICPX) is expected to decline, driven by the services component, as the effects of delayed price adjustments for some items fade out, wage pressures recede, and lower energy prices feed through the pricing chain. Wage growth should continue to follow its downward path as pressures to recoup past real wage losses fade. Coupled with a recovery in productivity growth, this is expected to lead to significantly slower unit labour cost growth. External price pressures, as reflected in import prices, are expected to remain moderate assuming that EU tariff policies remain unchanged, with some downward pressure stemming from the stronger euro and the decline in energy commodity prices over recent months. Compared with the March 2025 projections, the outlook for headline HICP inflation is revised down by 0.3 percentage points for both 2025 and 2026 on account of lower energy commodity price assumptions and the appreciation of the euro, while it is unrevised for 2027. [...]

Euro area economic activity increased by 0.3% in the first quarter of 2025, surprising slightly to the upside compared with the March projections, mainly owing to a strong impulse from the frontloading of exports. Domestic demand, driven by private consumption, likely made a positive contribution to growth in the first quarter, as did net trade. Real GDP growth was 0.1 percentage points above the rate foreseen in the March projections, mostly owing to the stronger than expected exports. Across sectors, industrial activity likely picked up in the first quarter, supported by a recovery in demand for goods owing to improving real incomes and frontloading of purchases in anticipation of tariffs, while activity in the services sector likely continued to increase.

Note: Historical data may differ from Eurostat's latest publications. The vertical line indicates the start of the current projection horizon. The ranges shown around the central projections provide a measure of the degree of uncertainty and are symmetric by construction. They are based on past projection errors, after adjustment for outliers. The bands, from darkest to lightest, depict the 30%, 60% and 90% probabilities that the outcome of real GDP growth will fall within the respective intervals.

Growth is expected to slow in the second and third quarters of 2025, as the unwinding of the frontloading of exports in the first quarter is compounded by new tariffs and by significant trade policy uncertainty.

In the medium term real GDP growth is expected to strengthen, supported by improving real disposable income, the gradual decline in uncertainty and a recovery in foreign demand as adverse tariff effects fade. [...] Investment is projected to gradually strengthen over the projection horizon, mostly reflecting a gradual dissipation of uncertainty, the deployment of Next Generation EU (NGEU) funds and improving demand conditions. In addition to the weakness in foreign demand, trade policy uncertainty (via weaker global investment and an unfavourable composition of foreign demand with respect to euro area exports), together with the appreciation of the euro compounding the protracted euro area competitiveness issues, implies continued losses in export market shares.

[...] Recently announced measures related to defence and infrastructure spending should bolster growth in the medium term.

[...] The impact of past monetary policy tightening on growth is estimated to have peaked in 2024 and is expected to fade over the projection horizon, supported by the decline in policy rates.

[...] Compared with last March projections, real GDP growth is unrevised for 2025 and 2027, but has been revised down slightly for 2026.

[...] Housing investment is estimated to have returned to positive growth in the first quarter of 2025, with momentum expected to strengthen somewhat over the projection horizon on the back of more favourable financing conditions and rising household real incomes. After a prolonged downturn that began in the second quarter of 2022, housing investment is estimated to have picked up again in the first quarter of 2025 and is expected to continue to grow in the coming quarters. The recovery in housing investment reflects improved housing demand, as also evidenced by the recent upturn in the number of building permits granted for residential buildings, and is attributable to the steady decline in mortgage rates since the end of 2023, supported by continued growth in household real income. Against the backdrop of reviving housing demand, housing investment growth is projected to strengthen in 2026 and 2027.

Weakened by high uncertainty in the short run, business investment is seen to gradually recover in the medium term as uncertainty declines, economic activity improves, and national and EU policies take effect.

[...] Headline inflation is expected to moderate and to average 2.0% in 2025 and 1.6% in 2026, before returning to 2.0% in 2027.

[...] Energy inflation is projected to remain negative until the end of 2026 and then to rebound in 2027 owing to climate change-related fiscal measures. [...] Alternative paths for oil and gas commodity prices suggest risks for inflation are overall tilted to the upside.

⁽source: https://www.ecb.europa.eu/press/projections/html/ecb.projections202506_eurosystemstaff~16a68fbaf4.it.html)

Relevant segment and comments on operations

While the macroeconomic outlook points to a slight recovery in residential construction, this has not yet materialized in the decorative surfaces sector for the furniture and furnishings market - covering both furniture and flooring - which remained largely steady in first half 2025. Incoming order flow met expectations for both Neodecortech and Cartiere di Guarcino, confirming the ongoing non-recovery phase already witnessed in second half 2024.

In first half 2025, prices of certain key raw materials for the Group, such as titanium dioxide and plastic films, remained basically steady versus second half 2024, confirming a sideways trend that has already persisted for several quarters.

The trend differed for pulp, which after rising since September 2023 began to stabilize only in second quarter 2025, though prices remained above pre-2023 levels; for animal fat, prices increased in first 4 months 2025 versus December 2024, then declined in May and June 2025, closing the period with a total increase of +5% versus 2024.

Energy carrier costs rose in the first two months of the year, peaked in February, and declined from March onward. The forward price for the second half of the year is broadly aligned with price levels at end first half. This trend continues to place pressure on operating margins, particularly for the most energy-intensive production entities (Cartiere and, to a lesser extent, Neodecortech).

With regard in particular to Cartiere di Guarcino, the Group's most energy-intensive company, it continued to operate according to the scheduled production plan that calls for maintenance-related stoppages during the year and was always fully operational. This thanks also to the supply of electricity by the subsidiary Bio Energia Guarcino, which operates an internal network with respect to Cartiere and was able to mitigate the effects of the energy crisis and ensure full uninterrupted production.

Bio Energia Guarcino (BEG) continues to operate under the temporary Guaranteed Minimum Prices (GMP) scheme.

Under this framework, the Power Plant has been operating at full capacity alongside Cartiere di Guarcino, benefiting from the Guaranteed Minimum Prices (GMP) scheme and supporting Cartiere on both the power and steam supply side.

Regarding NDT Energy S.r.l., on 4 February 2025 it obtained a permit for the construction and operation of a coincineration waste-to-energy plant for non-hazardous special waste in the Municipality of Atri (TE) Stracca - Industrial Zone (plant code AU-TE-043, Resolution No. DPC026/25). On 3 April 2025, the Municipality of Atri appealed to the Regional Administrative Court against the decision made by the Abruzzo Region. The Company is awaiting the decision from the TAR, which will meet in Council Chamber next 3 September.

Key balance sheet, financial and income figures

Consolidated results of the Neodecortech Group

Reclassified consolidated income statement

(Euro thousands)	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Revenue from sales and services	90,425	100.0%	85,285	100.0%	5,140	6.0%
Changes in work in progress, semi-finished and finished
products	3,166	3.5%	734	0.9%	2,432	331.3%
Other revenue	919	1.0%	1,015	1.2%	(96)	(9.5%)
Value of Production	94,510	104.5%	87,034	102.1%	7,476	8.6%
Raw and ancillary materials and consum.	(60,471)	(66.9%)	(55,610)	(65.2%)	(4,861)	8.7%
Other operating expense	(13,163)	(14.6%)	(13,399)	(15.7%)	236	(1.8%)
Value Added	20,876	23.1%	18,025	21.1%	2,851	15.8%
Personnel expense	(11,639)	(12.9%)	(11,145)	(13.1%)	(494)	4.4%
EBITDA	9,237	10.2%	6,880	8.1%	2,357	34.3%
Amortization and depreciation	(4,856)	(5.4%)	(4,399)	(5.2%)	(457)	10.4%
Allocations	(35)	(0.0%)	(36)	(0.0%)	1	(2.8%)
EBIT	4,346	4.8%	2,445	2.9%	1,901	77.8%
Financial expense	(1,439)	(1.6%)	(1,339)	(1.6%)	(100)	7.5%
Financial income	269	0.3%	266	0.3%	3	1.1%
Profit/(loss) before tax	3,176	3.5%	1,372	1.6%	1,804	131.5%
Income tax	(409)	(0.5%)	(167)	(0.2%)	(242)	144.9%
Profit/(loss) for the year	2,767	3.1%	1,205	1.4%	1,562	129.6%
Of which Group profit/(loss) for the year	2,800	3.1%	1,216	1.4%
Of which Profit/(loss) for the year of non-controlling interests	(33)	(0.0%)	(11)	(0.0%)

Revenue from sales and services at 30 June 2025 increased by € 5,140 thousand (+6.0%) versus first half 2024. Regarding the furniture and flooring sector, in which Neodecortech and Cartiera di Guarcino operate, despite some very modest signs of recovery, the order backlog remained basically steady in first half 2025 versus end 2024. This reflects the absence of a demand recovery following its decline that began in spring 2022. Revenue of these two companies was impacted by a further reduction in unit prices as well as a decline in volumes. In fact, in first half 2025, the steepest market decline occurred in Italy (-13.8%), while the rest of Europe recorded a smaller contraction (-3.0%). Residual markets showed growth in Asia/Middle East (+>100%) but declines in Africa and the Americas. However, the reduction in sales had been anticipated and aligned with the 2025 forecast. The Energy Division, namely Bio Energia Guarcino, recorded a revenue increase of approximately € 7 million, due to ARERA resolutions (No. 306/2024/R/eel of 23/07/2024 and No. 518/2024/R/eel of 03/12/2024), as well as higher volumes.

The € +2,432 thousand increase in Change in finished products was linked to certain sales that shifted into July.

The 8.7% increase in consumption of raw and ancillary materials reflects both the 6.0% rise in sales and the overall growth in inventory. The % on sales and service revenue rose from 65.2% in 2024 to 66.9% in 2025.

Other operating expense decreased (-1.8% or € 236 thousand) versus first half 2024. This item primarily includes costs for energy, gas, and other utilities.

Personnel expense totaled € 11,639 thousand, up moderately (+4.4%) in absolute terms versus € 11,145 thousand at 30 June 2024, but down as a percentage of revenue.

Versus first half 2024, the EBITDA margin was 10.2% (€ 9,237 thousand) of net sales, up from 8.1% at 30 June 2024 (€ 6,880 thousand): a performance above expectations.

Amortization and depreciation was up versus the first half of the prior year, due to intangible expenditure (ERP) that came into operation during 2025. Expenditure made by the Group amounted to € 4,020 thousand versus € 3,130 thousand at 30 June 2024.

Provisions refers to the allocation to the provision for supplementary agents' indemnity.

EBIT was up by € 1,901 thousand versus 30 June 2024, accounting for 4.8%.

Financial items totaled € -100 thousand versus 30 June 2024, accounted for 1.3% of revenue, and were consistent with the prior year: they benefited from lower nominal rates but were impacted by foreign exchange hedges that offset the effects of interest rate reductions.

Income tax for the period amounted to € 409 thousand, with the Group's theoretical tax rate at approximately 12.8%, benefiting from the effects of tax consolidation with Finanziaria Valentini S.p.A..

Net Profit amounted to € 2,767 thousand, accounting for 3.1% on revenue versus € 1,205 thousand at 30 June 2024, or 1.4%. The net profit includes a € 33 thousand loss attributable to minority interests relating to the 30% stake in the Chinese company acquired in 2024 and owned by a third-party shareholder.

Reclassified consolidated statement of financial position

(Euro thousands)	30 JUNE 2025	31 DECEMBER 2024	Chg.	% chg.
Trade receivables	25,963	35,713	(9,750)	(27.3%)
Inventory	47,816	40,049	7,767	19.4%
Trade payables	(33,791)	(29,952)	(3,839)	12.8%
Operating NWC	39,988	45,810	(5,822)	(12.7%)
Other current receivables	12,361	3,081	9,280	301.2%
Receivables from tax consolidation	348	348	-	0.0%
Tax receivables	5,541	1,989	3,552	178.6%
Other current payables	(9,772)	(7,462)	(2,310)	31.0%
Tax payables	(916)	(1,244)	328	(26.4%)
Payables from tax consolidation	(217)	(31)	(186)	600.0%
Net Working Capital	47,333	42,491	4,842	11.4%
Tangible fixed assets	73,767	74,480	(713)	(1.0%)
Intangible fixed assets	3,190	3,317	(127)	(3.8%)
Non-current financial assets	481	512	(31)	(6.1%)
Other non-current assets	375	359	16	4.5%
Fixed assets	77,813	78,668	(855)	(1.1%)
Post-employment benefits	(1,925)	(2,091)	166	(7.9%)
Provisions for risks and charges	(1,069)	(771)	(298)	38.7%
Deferred tax assets and liabilities	(4,385)	(4,479)	94	(2.1%)
Net Capital Employed	117,767	113,818	3,949	3.5%
Equity	81,059	80,725	334	0.4%
Cash funds	(5,485)	(12,483)	6,998	(56.1%)
Other current financial receivables	-	(81)	81	0.0%
Current financial liabilities	26,438	25,689	749	2.9%
Non-current financial liabilities	15,755	19,968	(4,213)	(21.1%)
Net Financial Debt	36,708	33,093	3,615	10.9%
Equity and Net Financial Debt	117,767	113,818	3,949	3.5%

Consolidated net working capital at 30 June 2025 amounted to € 47,333 thousand, while at 31 December 2024 it amounted to € 42,491 thousand (€ +4,842 thousand, of which € -5,822 thousand in operating NWC). The main combined effects contributing to the increase in NWC are: (i) the decrease in trade receivables offset by the increase in other current receivables, due to the GMP billing cycle, which at 31 December 2024 included receivables for invoices issued and collected in early 2025, whereas at 30 June 2025, advances for the current half-year were invoiced and collected, and estimated allocations for the December 2023 - June 2025 settlement are reported under other receivables; and (ii) the € 7,767 thousand increase in inventory, linked to sales postponed to the next half-year and advance purchases of certain strategic raw materials.

The change in tangible fixed assets is explained by the new capital expenditure made in line with plan, net of depreciation. Capital expenditure in tangible fixed assets refers mostly to (i) new machinery and the upgrading of existing machinery in the parent company Neodecortech; (ii) actions to increase the efficiency of paper machines and to optimize plants in Cartiere di Guarcino; and (iii) maintenance expenditure in Bio Energia Guarcino.

The change in intangible fixed assets is related to the ERP system change, which went live on 1 January 2025 and is currently being finalized.

Equity was affected mainly by allocation of profit for the period and by the dividend distribution in May 2025. The minority share refers to 30% of the Chinese company acquired in 2024 and owned by a third-party shareholder.

Consolidated net financial debt at 30 June 2025 versus 31 December 2024 and 30 June 2024 is shown below:

(Euro thousands)	30 JUNE 2025	31 DECEMBER 2024	30 JUNE 2024 Chg.		Chg.
A. Cash funds	(5,485)	(12,483)	6,998	(6,322)	837
B. Cash and cash equivalents	0	0	0	0	0
C. Other current financial assets	0	(82)	82	(6)	6
D. Cash (A) + (B) + (C)	(5,485)	(12,565)	7,080	(6,328)	843
E. Current financial debt	17,363	16,226	1,137	12,700	4,663
F. Current portion of non-current debt	9,075	9,464	(389)	8,885	190
G. Current financial debt (E)+(F)	26,438	25,690	748	21,585	4,853
H. Net current financial debt (G)-(D)	20,953	13,125	7,828	15,257	5,696
I. Non-current financial debt	15,755	19,968	(4,213)	23,225	(7,470)
J. Debt instruments	0	0	0	0	0
K. Trade payables and other non-current payables	0	0	0	0	0
L. Non-current financial debt (I)+(J)+(K)	15,755	19,968	(4,213)	23,225	(7,470)
M. Total financial debt (H)+(L)	36,708	33,093	3,615	38,482	(1,774)

Consolidated net financial debt at 30 June 2025 amounted to € 36,708 thousand (€ 33,093 thousand at 31 December 2024). The increase of € 3,615 thousand was due mainly to the reduction in available cash used to fund ongoing expenditure and working capital for both Neodecortech and the subsidiary Cartiere di Guarcino. Regarding the subsidiary BEG, during 2025 the "guaranteed minimum prices" scheme was regularized, which provides for advances at 60 days (transferable to the factor) and annual settlements. This had a positive impact on the Company's financial debt, which at 31 December 2024 had been affected by the non-collection of approximately € 16.8 million in receivables from the GSE.

Net financial debt decreased versus 30 June 2024, from € 38.5 million to € 36.7 million, a reduction of € 1.8 million. At 30 June 2024, the value was impacted by the non-collection of maximization receivables and GMPs totaling € 19 million, versus € 10.5 million at 30 June 2025, of which € 1.6 million related to the reinstatement of fixed costs under the socalled "maximization scheme" and € 8.9 million under the "guaranteed minimum prices" scheme. Net of these effects, the NFP in 2025 was affected by cash outflows used to finance working capital, particularly inventory, and by the planned investments in the 2025 budget, including for the new ERP system.

As a result, there is currently no indication that the only covenant in the CDG subsidiary's loan might not be met.

Key results by operating segment

To provide adequate disclosure on the nature and characteristics of revenue under IFRS 8, a breakdown is provided below.

The following tables show the changes in the main income statement and balance sheet indicators between 30 June 2025 and 30 June 2024, broken down by operating segment and gross of intercompany items (see the segment reporting in the Notes to the Financial Statements for figures net of intercompany items).

Income Statement

(Euro thousands)	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Printed Decorative Paper Division
Revenue from sales and services	34,926	100.0%	35,350	100.0%	(424)	(1.2%)
EBITDA	2,612	7.5%	3,262	9.2%	(650)	(19.9%)
EBIT	746	2.1%	1,677	4.7%	(931)	(55.5%)
Profit (loss) for the year	2,804	8.0%	1,216	3.4%	1,588	>100.0%
Decorative Paper Division
Revenue from sales and services	35,908	100.0%	40,848	100.0%	(4,940)	(12.1%)
EBITDA	2,646	7.4%	2,105	5.2%	541	25.7%
EBIT	1,143	3.2%	756	1.9%	387	51.2%
Profit (loss) for the year	2,384	6.6%	(4)	0.0%	2,388	(>100.0%)
BEG Energy Division
Revenue from sales and services	27,971	100.0%	20,540	100.0%	7,431	36.2%
EBITDA	4,123	14.7%	1,567	7.6%	2,556	>100.0%
EBIT	2,730	9.8%	182	0.9%	2,548	>100.0%
Profit (loss) for the year	2,158	7.7%	(75)	(0.4%)	2,233	>100.0%
NDTe Energy Division
Revenue from sales and services	0	0.0%	0	0.0%	0	0.0%
EBITDA	(27)	0.0%	(17)	0.0%	(10)	58.8%
EBIT	(27)	0.0%	(17)	0.0%	(10)	58.8%
Profit (loss) for the year	(27)	0.0%	(17)	0.0%	(10)	58.8%
NDT China Division
Revenue from sales and services	115	100%	14	100%	101	>100.0%
EBITDA	(68)	(59.1%)	(33)	(>100.0%)	(35)	>100.0%
EBIT	(88)	(76.5%)	(36)	(>100.0%)	(52)	>100.0%
Profit (loss) for the year	(112)	(97.4%)	(36)	(>100.0%)	(76)	>100.0%

Statement of financial position

(Euro thousands)	30 JUNE 2025	31 DECEMBER 2024	Chg.	% chg.	30 JUNE 2024
Printed Decorative Paper Division
Operating NWC	16,548	13,907	2,641	19.0%	15,226
Net Working Capital	12,015	9,280	2,735	29.5%	10,263
Equity	81,162	80,818	344	0.4%	78,298
Net Financial Debt	9,431	7,210	2,221	30.8%	4,758
Decorative Paper Division
Operating NWC	24,209	19,606	4,603	23.5%	20,546
Net Working Capital	22,663	17,922	4,741	26.5%	19,199
Equity	46,966	46,707	259	0.6%	42,958
Net Financial Debt	24,066	16,581	7,485	45.1%	21,500
BEG Energy Division
Operating NWC	(331)	12,702	(13,033)	(>100.0%)	(459)
Net Working Capital	13,238	15,842	(2,604)	(16.4%)	17,856
Equity	12,351	10,192	2,159	21.2%	11,175
Net Financial Debt	3,329	9,516	(6,187)	(65.0%)	12,528
NDTe Energy Division
Operating NWC	(14)	(14)	0	0.0%	(27)
Net Working Capital	6	2	4	200.0%	(18)
Equity	84	111	(27)	(24.3%)	130
Net Financial Debt	(53)	(84)	31	(36.9%)	(123)
NDT China Division
Operating NWC	(257)	(264)	7	(2.7%)	(11)
Net Working Capital	(421)	(428)	7	(1.6%)	(94)
Equity	(181)	(126)	(55)	43.7%	27
Net Financial Debt	(65)	(130)	65	(50.0%)	53

Decorative Paper Division - Neodecortech

As previously noted, the slight recovery in residential construction has not yet translated into increased demand for furniture. The Company's order backlog remains steady overall. More specifically, printed PVC, printed paper, and impregnated products are the families still struggling to recover, while both laminates and EOStp, though below expectations, continue to show growth. Overall, the change in sales was a modest -1.2% versus first half 2024, representing a decrease of € -424 thousand, due to both lower volumes and reduced prices.

Versus first half 2024, margin performance was negatively affected by market pressures, some sales postponed to July, and higher utility costs, leading to a decline in the EBITDA margin from 8.9% to 7.1%. This value was also impacted by

increased personnel expense following implementation of the new national contract. Other operating costs remained steady versus the first half of the prior year.

Net profit at 30 June 2025 was € 2,804 thousand, with a 7.4% revenue margin, versus € 1,216 thousand at 30 June 2024 (3.3% margin). The current year's figure includes € 2,354 thousand of positive effect from the equity measurement of the investment in the subsidiary CDG, which itself benefited from the equity measurement of the subsidiary BEG.

Versus 31 December 2024, the increase in NWC of € +2,735 thousand is attributable to the combined effect of the increase in trade receivables/payables of € -626 thousand and the increase in inventory of € 3,342 thousand due to a few shipment delays into July. These effects were offset by a € -624 thousand decrease in other current payables and tax receivables, due to the recognition of benefits tied to 5.0 tax receivables and an increase in VAT receivables.

The change in equity reflects both the increase from the profit allocation for the period and the reduction following the dividend distribution in May 2025.

The € 2,222 thousand increase in net financial debt versus 31 December 2024 was due mainly to expenditure funded with the Company's cash, as well as the rise in working capital described above.

Paper Division - Cartiere di Guarcino

At Cartiere di Guarcino, revenue performance followed a similar pattern to Neodecortech, though slightly more pronounced. Revenue decreased by -12.1% versus first half 2024, totaling € -4,939 thousand, due to a combination of lower volumes, a changed mix favouring backer papers with lower unit prices, and a slight increase in selling prices.

Other revenue at 30 June 2025 amounted to € 414 thousand, in line with the prior year.

As far as raw material trends are concerned, the pulp market in first half 2025 continued the growth that started in the latter part of 2024 and then retraced in second quarter 2025. Cumulative pulp cost increases were approximately 6% for short fibre and approximately 23% for long fibre.

Titanium dioxide prices declined slightly in Q1 due to weak demand and strong product availability. In Q2, the announced price hikes underperformed expectations, resulting in average increases of € 30/50 versus the initially proposed € 150/200. In Q3, prices are expected to decline further due to continued weak demand and ample product availability in the European market, despite Tronox's announced closure of its plant in the Netherlands. Demand in China also remains weak, with prices sharply declining and once again competitive with the European market, despite the application of approved EU anti-dumping tariffs.

Below are the gross price trends of the combination of Short Fibre pulp and Long Fibre pulp (FOEX readings) typical of printing base paper and Titanium Dioxide (Source ICS).

Source FOEX

Source ICS

Given the weakness in demand across its target market, the Company was only partly able to pass on the increase in raw material costs to end customers. Conversely, it benefited from the contribution of the subsidiary BEG in the form of a lower energy cost burden, resulting in higher EBITDA, which rose to 7.4% of net sales (versus 5.2% at 30 June 2024), with an increase of € 504 thousand versus first half 2024.

Net profit at 30 June 2025 amounted to € +2,383 thousand versus a result of € -5 thousand at 30 June 2024, representing a margin of 6.6%. The 1° half 2025 figure included a € +2,077 thousand positive impact from the equity measurement of the investment in BEG, whereas the 2024 result was affected by a € -155 thousand write-down on the investment in BEG.

Net financial debt increased by +7,478 thousand versus 31 December 2024. The increase was required to finance working capital, particularly the titanium dioxide inventory at period-end, as well as expenditure planned in the 2025 forecast.

On 28 April 2025, the subsidiary Cartiere di Guarcino signed a notarial deed for a Conditional Loan agreement under the Sustainable Growth Fund - Circular Economy. The agreement covers € 999,999.97 at a subsidized rate and € 400,000.00 at an ordinary rate.

Bio Energia Guarcino Division

In 2025, the ordinary GRIN incentive is € 71.94/MWh, up versus the figure of 2024. In 2025, the temporary guaranteed minimum prices (GMP) scheme governed by ARERA Resolution 306/2024 remains in force.

Energy and gas prices rose in the first two months of the year, peaking in February, then declined starting in March (PUN went from € 150/MWh in February to € 94/MWh in May, then rose again to € 114/MWh in June, while gas fell from € 53/MWh in February to € 39/MWh in June).

The forward price for second half 2025 is broadly aligned with price levels at end first half.

The fuel mix used in the first half was as follows: 19% RUCO, 23% refined vegetable oils, 57% animal fats, and diesel limited to approximately 1%.

In first 4 months 2025, the animal fats market increased versus December 2024, before declining in May and June 2025. The overall effect was a +5% increase, driven mainly by fats with higher FFA content.

EBITDA at 30 June 2025 came to € 4,123 thousand, up versus 30 June 2024 (€ 1,567 thousand). The increase was due to a +7% improvement in the production regime and more timely GMP revenue recognition versus 30 June 2024, following ARERA Resolutions No. 306/2024/R/eel of 23/07/2024 and No. 518/2024/R/eel of 03/12/2024.

At 30 June 2025, profit amounted to € 2,158 thousand versus a loss of € 75 thousand at 30 June 2024.

At 30 June 2025, net financial debt stood at € 3,329 thousand, a decrease of € -6,187 thousand versus 31 December 2024, due mainly to the GSE's implementation of the payment-on-account system for accrued GMPs.

Main Alternative Performance Measures (APMs)

The European Securities and Market Authority (ESMA) has published guidelines on Alternative Performance Measures ("APMs") for listed issuers.

The APMs constitute information used by Management and investors to analyze the trends and performance of the Group, which are directly derived from the financial statements, even though not required by IAS/IFRS. These measures, used by the Group continuously and consistently for several years now, are relevant to assist Management and investors in analyzing the Group's performance. Investors should not consider these APMs as substitutes, but rather as additional information to the figures included in the financial statements. It should be noted that the APMs as defined may not be comparable to APMs of a similar name used by other listed groups.

The definition of the main APMs used in this Directors' Report on Operations is given below:

• EBITDA and EBIT: alternative performance measures not defined by IAS/IFRS but used by Group Management to monitor and measure its performance, as they are not affected by volatility, due to the effects of the range of criteria for determining taxable income, the amount and characteristics of the capital employed and - for EBITDA - the amortization/depreciation policies. These measures are also commonly used by analysts and investors to assess company performance;

• ADJUSTED EBITDA and EBIT: a measure used by Management to strip EBITDA and EBIT of the effect of non-recurring cost and revenue components;

• ADJUSTED NET PROFIT: a measure used by Management to strip net profit of the effect of non-recurring cost and revenue components;

• OPERATING WORKING CAPITAL, NET WORKING CAPITAL, FIXED ASSETS and NET INVESTED CAPITAL Allow a better assessment of both the ability to meet short-term trade commitments through current trade assets and the consistency of the structure of loans and sources of financing in terms of time;
• NET FINANCIAL DEBT The sum of current and non-current financial debt net of cash, determined in accordance with ESMA Guideline 32-382-1138 dated 4 March 2021 and CONSOB's "Warning Notice no. 5/21" dated 29 April 2021.

Main risks and uncertainties to which Neodecortech S.p.A. and the Group are exposed

The Group's risk management is based on the principle of accountability that the risk is managed by the person in charge of the business process directly involved.

The main risks are reported and discussed at the top management level of the Group companies in order to create the conditions for their management, coverage, insurance and assessment of the residual risk.

Financial risks are managed within the framework of specific directives of an organizational nature that govern their management and the oversight of all transactions that are strictly relevant to the composition of assets and liabilities of a financial and trade nature. Risks are also monitored by means of a structured system (ERM) for all Group companies, with specific reporting to the relevant Board of Directors and, in aggregate form, to the Board of Directors of the Parent Company.

Below is an analysis of risks and the resulting uncertainties.

Non-financial risks

Risks associated with the general economic situation

As the Group operates in a global competitive scenario, its financial position, results and cash flows are affected by the general conditions and performance of the world economy, as well as by the continued Russian-Ukrainian conflict. Any negative economic cycle or political instability in one or more relevant geographical markets may influence the Company's performance and strategies and affect its future prospects in both the short and medium/long term. In order to alleviate risk, the Group operates both nationally and internationally, in order to diversify the source of its sales. This is to avoid both the concentration of sales from a single country and to adopt business strategies that allow it not to depend on customers located in high-risk countries. Specifically, in light of the Russian-Ukrainian conflict that broke out at end February 2022, the Group can attest that it has not carried out any development activities or invested in these countries, and purchases and sales in both Russia and Ukraine are negligible. Except for sales of Cartiere goods that are not embargoed. Still, the ongoing conflict has undeniably dampened the

consumption propensity of furniture and flooring buyers, impacting indirectly on the Group's results. The prevailing macroeconomic uncertainty has been further compounded by the Israeli-Palestinian conflict that broke out on 7 October 2023. Additionally, global geopolitical instability and trade tensions between economic blocs could lead to new or tighter customs duties and import/export restrictions, potentially affecting the Group's sourcing model and the competitiveness of its products in international markets. The Group constantly monitors developments in international regulations to anticipate critical issues and implement alternative trade and logistical strategies to mitigate the economic effects of protectionist scenarios.

Risks associated with the level of competitiveness and cyclicality in the segment

Demand trends are cyclical and vary according to the general economic conditions and the consumption propensity of end customers. An adverse trend in demand, or if the Group is not able to adapt effectively to the external market context, could have a significant negative impact on the Group's business prospects, as well as on its performance and financial situation. Most of the Group's revenue is generated in the decorative papers and industrial paper sectors. The Group competes primarily in Europe with other major

Risks associated with sales on international markets

Part of the Group's sales takes place outside the European Union. The Group is therefore exposed to the risks related to exposure to local economic and political conditions and to the possible implementation of restrictive import and/or export policies. The Group international groups. These markets are all highly competitive in terms of product quality, innovation and price. The Group has launched new product lines in order to seize new market segments that are more lucrative than traditional business; these new lines will not only allow it to acquire new customers, but also to expand sales and further strengthen its relationships with existing customers.

.

constantly monitors the development of political and financial risks associated with countries whose general economic and political situation could prove unstable in the future, in order to take possible mitigation actions.

Risks associated with fluctuations in the price of raw materials and of components

The Group's exposure (in particular the Paper and Energy Division) to the risk of an increase in prices of raw materials for production is definitely real. In order to manage this risk, the Group constantly monitors the market prices of the raw materials it procures for its activities in order to promptly anticipate any significant price increases, always keeping at least two suppliers that are able to supply the same quantity and quality of raw materials. In this context however, the Group does not carry out specific hedges against these risks but rather tends to implement targeted purchasing policies to ensure stability for periods normally of no less than a quarter. The technical methods of setting prices on the raw materials market, as well as the fierce level of competition in the Group's area of operation, do not always allow it to transfer all of the sudden and/or significant increases in procurement costs to sales prices.

Risks associated with the ability to propose innovative products

The success of the Group's activities depends on its ability to maintain or increase its share in its markets of operation and/or to expand into new markets through innovative, high-quality products that ensure adequate levels of profitability. Specifically, should the Group be unable to develop and offer innovative and competitive

products compared to those of its main competitors in terms of price and quality, the Group's market shares could shrink, impacting negatively on its business prospects, results and/or financial situation. The Group invests constantly in technological innovation in order to mitigate this risk. Investments in recent years have been channeled mainly into the new lacquering line for EOS products, the expansion of an embossing line for plastic films, the purchase of a new lamination line and a new impregnation line, and the purchase and engraving of cylinders, as well as work to maintain/upgrade existing process technologies which, at Cartiere, have escalated to an extraordinary scale.

Risks associated with the concentration of sales on a small number of customers and with production on order

Part of the Group's revenue is concentrated on a small number of customers. Production on order is strictly affected by relations with the Group's main customers, which can have a significant impact on revenue generation. Group revenue relates mainly to business on order, where prices are based on the production batch. The Group therefore bears the risk that the work required to complete individual job orders is higher than budgeted and that, consequently, expectations in terms of profit margins may be significantly lower. Additionally, production on order is subject to possible fluctuations in revenue in the short term. Consequently, the increase or decrease in revenue in a given period may not be indicative of revenue trends over the long term. In order to mitigate the resulting risk, the Group Companies have developed long-term relationships with their main customers based on trust and great focus on quality. The products developed become "niche" products, not just commodities. Decorations are developed, in some cases, ad hoc at the customer's request; the Group, therefore, adopts a loyalty system with this practice.

Risks associated with the compliance with environmental, health and safety regulations in the workplace

The Group is an industrial entity and, as such, is subject to laws and regulations governing the environment, health and safety in the workplace. Violations of the regulations applicable to these areas could result in restrictions on the Group's activities, the application of sanctions and/or claims for damages. In performing its activities, the Group is subject to strict environmental and health and worker protection legislation, applicable within the plants where production activities are carried out. In this regard, Neodecortech S.p.A. and its subsidiaries have obtained ISO 14001 environmental certification and ISO 45001 on health and safety in the workplace. As far as environmental protection is concerned, in accordance with applicable legislation, the Group has the burden of requesting and obtaining permits and authorizations to carry out its activities. Specifically, the Parent Company completed the initial steps for the renewal of the Integrated Environmental Authorization (AIA), with the last session of the services conference held on 15/10/2024. Meanwhile, the subsidiary Cartiere di Guarcino, with resolution no. G04146 of 11/04/2024, saw the Lazio Region positively conclude the services conference for the revision, validating the renewal of the A.I.A. for the Company. The Region issued provisions, and in compliance with them, Cartiere di Guarcino S.p.A. submitted updated technical documentation to the Region (and for information to ARPA Lazio), along with a synoptic overview of the fulfillment of these requirements. Additionally, production activities imply a controlled use of hazardous chemical materials that require a special system for their management and disposal. With regard to health and safety in the workplace, the Group is required to comply with laws and regulations (for instance, Legislative Decree no. 81 of 2008) aimed at mapping and managing risks, also with a view to preventing accidents. To this end, the Group has adopted policies and procedures to comply with regulatory provisions; the presence of requirements regarding safety, health and hygiene in the workplace

is secured thanks to the constant updating and implementation of the legally prescribed controls.

An additional environmental compliance risk is the entry into force of the European Regulation on Deforestation (EU Regulation 2023/1115 – EUDR), which requires companies to ensure that products placed on the European market are not sourced from supply chains linked to deforestation or forest degradation. Failure to comply with these requirements entails the risk of penalties and exclusion from the European market. The Group has initiated a review of its raw material sourcing (specifically wood-based products) and is implementing measures to ensure traceability and compliance with EUDR requirements by reinforcing its environmental due diligence system.

Risks associated with Management

The success of the Group depends to a large extent on the ability of its Executive Directors and other members of management to effectively manage the Group and its individual business areas.

The current governance structure of Neodecortech S.p.A. - with the presence of two Executive Directors who have longstanding experience in the specific line of business - allows management of operating discontinuities in the short term resulting, for instance, from a replacement of Managing Directors before the ordinary expiry of their office or resignation, thus ensuring continuity and stability in the management of the Company and the Group. Additionally, the Group has fitted itself with an effective organizational setup, which provides, for each department within the Companies, a manager with adequate powers to exercise the role.

Cyber Security Risk

With regard to cyber security, the Group is implementing all necessary actions to align its structure with the main national and international industry standards. Technological and organizational measures were recently put in place with the aim of: managing the threats to which the organization's network infrastructure and information systems are exposed, in

Climate Change Risk

a significant global challenge that can impact its business operationally, financially, and reputationally. The Group has initiated a structured process to analyze its environmental impacts and mitigation activities, focusing on identifying physical and transitional risks associated with climate change. Since 2021, Neodecortech has been working to assess climate change risks and opportunities as part of its broader sustainability program. This analytical process involves mapping both direct and indirect impacts on its plants and operations, continuously monitoring global environmental sustainability order to ensure a level of security appropriate to the existing risk; preventing incidents and minimizing their impact on the security of the network and information systems used for production and business, in order to ensure their continuity.

A business continuity/disaster recovery procedure is in place to deal with any unforeseen events.

regulations and trends, and assessing accounting estimates that may be affected by climate risks. Continuing this effort, Neodecortech has intensified its focus on monitoring and progressively reducing environmental impacts by adopting innovative technologies and optimizing production processes. At the same time, climate risk management has been incorporated into the Enterprise Risk Management (ERM) system, with ongoing assessments and monitoring of climate change risks. These risks are systematically addressed and integrated into corporate strategies, in alignment with CONSOB's

relevant principles and guidelines. Neodecortech ensures constant alignment between the financial and non-financial information disclosed in its financial statements and sustainability report. This approach improves the consistency and transparency of information, avoiding potential discrepancies (greenwashing) and providing stakeholders with a comprehensive view of the Group's environmental impacts and mitigation strategies.

Financial risks

Risks associated with financial requirements

Liquidity risk is normally defined as the risk that a company will be unable to meet its payment obligations due to the difficulty of raising funds (funding liquidity risk) or liquidating assets on the market (asset liquidity risk).

The Group efficiently manages its financial resources through a loan agreement between the Parent Company and its Subsidiaries in order to make surplus liquidity available, if necessary, to cover its requirements. Short-term bank credit lines are in line with commitments undertaken and planned, while medium-term loans guarantee adequate coverage for investments in fixed assets, keeping cash flows and the resulting liquidity generated in balance.

Thanks to the provision of low-interest loans obtained through emergency law decrees in 2020 and to a loan obtained in 2022 through a SupportItalia guarantee, in addition to two loans from SIMEST with a non-repayable portion to support Italian exporting companies sourcing from Ukraine and/or Russia and/or Belarus obtained in 2023 and 2024, the Company was able to redefine the maturities of its debt by lengthening its duration. Reference should be made for further details to the Directors' Report on Operations and to Note 25 "Noncurrent financial liabilities" and "Current financial liabilities".

Credit risk

The current assets of Group companies, with the exception of inventory, are primarily trade receivables. The Group presents different credit risk concentrations in its different relevant markets. While the Group has longstanding relationships with its main clients, changes in these relationships or in the business strategies of some of these clients could have negative effects on the results and

Currency risk

The Group is obviously exposed to market risks associated with fluctuations in exchange rates and interest rates. Exposure to exchange rate risks is related mainly to the procurement of certain raw materials (pulp and titanium dioxide) and, to a lesser extent, to the sale of products, which leads to cash financial position of the Group itself. The Group takes measures to carefully manage trade receivables in order to minimize collection time and credit risk, also adopting a policy of advance payments and guarantees, including the insurance of most receivables. To date, the Group has not encountered significant issues in the collection of trade receivables and does not expect to have a significant negative impact from this situation in the future.

flows denominated in currencies other than those of the production area (mainly US dollars). This exposes the Group to the risk of fluctuations in the Euro against the US dollar, against which specific exchange rate hedging policies are adopted, but not accounted for in hedge accounting.

Interest rate risk

The Group companies have in place - inter alia financial liabilities (loans) at floating rates. In order to alleviate the negative effects of a possible increase in interest rates, a hedging derivative (IRS - Interest Rate Swaps) is in place, accounted for using the fair value hedge accounting method. Specifically, at 30 June 2025, the Parent Company had an IRS in place relating to the mortgage loan agreement with BPM, with a notional value of € 2,862 thousand and a positive fair value of € +36 thousand (a positive € 67 thousand at 31 December 2024).

Corporate Governance

The Company has aligned its corporate governance system to the relevant provisions set out in Legislative Decree no. 58/1998 ("TUF"), and has adopted the Corporate Governance Code approved by the Corporate Governance Committee, published on 31 January 2020, applicable as from 1 January 2021 (the "Corporate Governance Code") and adopted by the Company on the same date.

Following the provision of Borsa Italiana for admission to the STAR segment dated 5 March 2021, trading of the Company's ordinary shares began on 15 March 2021 on the STAR segment of Euronext Milan organized and managed by Borsa Italiana.

The Company has a traditional management and control model in place, which envisages the presence of the Shareholders' Meeting, the Board of Directors, the Board of Statutory Auditors and the Independent Auditors (for further information, reference should be made to the chapter "CORPORATE BODIES" at the beginning of this Report).

At the meeting held on 24 March 2025, the Chairman of the Board of Directors submitted for discussion the recommendations set out in the communication from the Chairman of the Corporate Governance Committee of Borsa Italiana dated 17 December 2024, concerning (i) more effective application of the "comply or explain" principle; (ii) transparency regarding deviations from the Corporate Governance Code; (iii) the Board's active role in approving the business plan and promoting long-term value creation; (iv) efficient and timely management of pre-Board disclosure; (v) the definition of measurable targets in variable remuneration; and (vi) the rationale for granting broad management powers to the Chairman (the "Recommendations"); the Board of Directors discussed then took account of all the Recommendations and ascertained that the Company's governance is already aligned with most of them; the considerations made and any further initiatives will be formalized and reflected in the Report on Corporate Governance and Ownership Structure pursuant to Article 123 bis of the TUF.

The Shareholders' Meeting of 29 April 2025 of the Parent Company Neodecortech, pursuant to Article 123-ter, paragraph 3-ter, of Legislative Decree no. 58/1998, approved Section One of the Report on the Remuneration Policy and on Compensation Paid and, pursuant to Article 123-ter, paragraph 6, of the TUF, approved Section Two of the Report on the Remuneration Policy and on Compensation Paid.

For further information on the Company's corporate governance, reference should be made to the specific section on the Company website www.neodecortech.it,, Investors, Corporate Governance section.

Related party transactions

Following the transposition into Italian law of Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 (Shareholders Right Directive II), through Legislative Decree no. 49/2019, and in light of the CONSOB amendments with resolution no. 21624 of 10 December 2020 to the regulation containing provisions on related party transactions adopted by CONSOB with resolution no. 17221 of 12 March 2010, on 30 March 2023, the Board of Directors of the Company approved the update to the Related Party Transactions Procedure (the "RPT Procedure"), adopted by the Company on 25 June 2020 and amended on 10 December 2020 and on 28 June 2021.

The procedure aims to ensure full transparency and correctness of transactions carried out with Related Parties. The updated text of the Procedure for Transactions with Related Parties of Neodecortech S.p.A. is available on the Company website (www.neodecortech.it).

Reference should be made to the Explanatory Notes to the Consolidated Financial Statements, which provide a detailed comment on transactions with related parties; it should be noted that during the year under review, no atypical or unusual transactions were carried out with such parties and that business transactions with related parties, including those outside Group companies, were carried out at conditions corresponding to normal market value.

Capital expenditure

In first half 2025, capital expenditure in tangible and intangible fixed assets totaled € 4,027 thousand. € 1,341 thousand of this expenditure refers to the Parent Company and relates to new plant and machinery and the improvement and efficiency of existing ones, and, with regard to intangible fixed assets, for the change of the ERP system.

As for the subsidiaries, capital expenditure in tangible fixed assets amounted to € 2,638 thousand for Cartiere di Guarcino S.p.A., regarding actions to increase output and optimize plants, and € 26 thousand for Bio Energia Guarcino S.r.l..

All Group plants are continuing their 4.0 and 5.0 process revision actions to further strengthen the production process, with active control of critical variables and plant upgrading.

In first half 2025, work continued across all Group companies to complete the expenditure in intangible fixed assets for the new ERP system, which became operational on 1 January 2025.

Research & Development

Innovation has long been the driving force for the Neodecortech Group, shaping ideas, projects, products, and development processes. Fueled by research, this commitment to innovation fosters the development and sharing of knowledge, benefiting various market sectors.

In recent years, especially at Cartiere, the Group has in fact embarked on a path of product and market diversification, offering environmentally-sustainable solutions, also in consideration of recent European regulations, such as the SUP directive that establishes a ban on the sale of all single-use plastic products. In response to this law, Neodecortech is working on research projects to experiment lines of decorative papers for new applications and alternative uses, oriented towards environmental protection and produced using cutting-edge and highly efficient technologies, capable of generating productivity increases, lower pollution and lower production of waste, ensuring a sustainable product, from production to disposal.

Creative development is overseen by the Neodecortech Lab, which collaborates closely with the sample department. Equipped with digital printers and laboratory rotogravure machines, the sample department ensures meticulous sampling and matching to the sample, offering customers the highest reproduction quality plus fast work time.

Additionally, in 2022, the subsidiary Cartiere di Guarcino S.p.A. launched the European project PUSH2HEAT backed by the Horizon program, continued in 2025, which involves the formation of consortia of companies to promote new technologies within Member Countries. The primary objective of PUSH2HEAT is to develop, install, and monitor systems that can utilize waste heat (in the form of hot flue gas or hot water) generated by industrial processes and convert it into steam, i.e., higher enthalpy heat, by utilizing heat pumps. Cartiere di Guarcino takes part in the project as one of the chosen demonstration sites, where two machines (heat pump and mechanical steam re-compressor) will be installed to extract steam through heat contained in the cooling water of the Bio Energia Guarcino S.r.l. cogeneration plant. The project involves partial coverage of the costs of personnel involved and the activities required in the implementation of the machinery, up to the amount of € 734 thousand; the project is developed on a 4-year time horizon, starting from 01/10/2022. Until 30 June 2025, € 350 thousand of non-repayable co-financing was granted from the Horizon Project.

Cartiere di Guarcino S.p.A. continues the project on an innovative paper for food use, submitting on 10/12/2020 an aid application under the "Circular Economy" call pursuant to Ministerial Decree 05/08/2020 and DD 11/06/2020 20/06/2013, regarding the project on the "Study and development of an innovative paper for food use". On 23/01/2025, the MIMIT issued the Granting Decree, which provides for an allowable cost of up to € 2,000 thousand, a subsidized loan of € 1,000 thousand and a non-repayable grant of € 200 thousand.

Information on the environment, safety and health and, more generally, on ESG topics

Environment

Environmental impact is a crucial issue for the Neodecortech Group. As proof of this, the Parent Company, since 2007, has acquired a series of system certifications that offer its stakeholders tangible evidence of its commitment and of the transparency and correctness of its business activities.

This approach has also been gradually adopted by the subsidiaries Cartiere di Guarcino S.p.A. and Bio Energia Guarcino S.r.l.. Below is a list of the certifications obtained by each Group company. With regard to environmental targets and policies, in 2023 the Group continued with the implementation of the ESG 2021-2023 Plan adopted at the Board meeting in May and November 2021, and at the Board meeting in February 2024 approved the 2024-2026 ESG Plan.

Moreover, given the product sector in which the Group companies operate and their activities, there are no reports of specific activities and/or accidents with repercussions on the environment. During the year, the Group caused no environmental damage for which it was found guilty, nor was it imposed fines or penalties for environmental offences or damage.

Neodecortech UNI EN ISO 9001 (since 2009) - Quality System Certification UNI EN ISO 14001 (since 2007) - Environmental Certification - for the improvement of environmental performance BS HOSAS 18001 (2011 to 2019) - Certification related to occupational health and safety management UNI EN ISO 45001 (since 2020) - Certification related to occupational health and safety management

UNI EN ISO 50001 (since 2017) - Certification related to energy use efficiency and gradual improvement of energy performance

FSC® CHAIN CUSTODY (since 2010) - Certification related to the sustainability of the forests where the pulp used in the paper we employ is obtained from

MADE IN ITALY 100% (since 2015) - Supply Chain Certification

SUSTAINABILITY REPORT from 2016 to 2020

NON-FINANCIAL STATEMENT (since 2021) with limited assurance.

CDP rating: B

Cartiere di Guarcino	UNI EN ISO 9001 (since 2017) - Quality System Certification
	UNI EN ISO 14001 (since 2012) - Environmental Certification - for the improvement of environmental performance
	BS HOSAS 18001 (2012 to 2018) - Certification related to occupational health and safety management
	UNI ISO 45001 (since 2019) - Certification related to occupational health and safety management
	UNI EN ISO 50001 (since 2018) - Certification related to energy use efficiency and gradual improvement of energy performance
	FSC® CHAIN CUSTODY (since 2010) - Certification related to the sustainability of the forests where the pulp used in the paper we employ is obtained from
	PEFC (since 2015) - Programme for Endorsement of Forest Certification
	CRADLE TO CRADLE (since 2025) - Product certification certifying commitment to a circular economy
Bio Energia Guarcino	UNI EN ISO 9001 (since 2017) - Quality System Certification
	UNI EN ISO 14001 (since 2012) - Environmental Certification - for the improvement of environmental performance
	BS HOSAS 18001 (2016 to 2018) - Certification related to occupational health and safety management
	UNI ISO 45001 (since 2019) - Certification related to occupational health and safety management

UNI EN ISO 50001 (since 2018) - Certification related to energy use efficiency and gradual improvement of energy performance

Safety and Health

The Group adopts all workplace health and safety measures and, in particular. has adopted all the safety protocols provided for, as explained in detail in the relevant paragraph on risks.

No particular critical issues and/or incidents were reported in this area. During the year, the Group caused no damage for which it was found guilty, nor was it imposed fines or penalties for offences or damage on health and safety.

ESG

Regarding climate risks, as outlined in the section "Main risks and uncertainties to which Neodecortech S.p.A. and the Group are exposed" and specifically related to Climate Change, the Group conducted a preliminary internal assessment to identify the extent and pervasiveness of these risks at both the actual and forecast levels. Possible impacts on estimates, changes in the useful life of assets, potential impairment of trade receivables, and other assets were analyzed. It is believed that, based on the business model and the analyses performed, the Group does not face significant exposures to environmental risks, particularly those related to climate change.

Commitment to social responsibility and territorial issues has long been an integral part of the principles and conduct of Group companies. These are geared towards maintaining high levels of safety, environmental protection, energy efficiency, and staff training, as well as raising awareness and involvement on social responsibility topics.

In 1° half 2025, as in prior years, there was no environmental damage for which any of the Group's companies was declared definitively liable.

More generally, regarding ESG topics, the Board of Directors of Neodecortech S.p.A. approved the new 2024-2026 ESG Action Plan in February 2024. This plan continues the scope of the 2021-2023 plan, maintaining continuity and commitment to sustainability.

The 2024-2026 ESG Action Plan focuses on strategic priorities such as combating climate change, improving water use efficiency, reducing and managing waste, and applying circular economy principles. Additionally, support for local communities continues, and the commitment to ethical and responsible supply chain management is strengthened. In this context, a new supplier analysis methodology has been implemented through the introduction of a Vendor Rating system. This system allows suppliers to be periodically evaluated based on sustainability criteria, particularly those related to human rights, environmental impact, and ethical business practices. This tool will help select and retain suppliers aligned with the Group's ESG goals and values.

In parallel, targeted training was initiated for managers and middle managers, aimed at raising their awareness and training on sustainability principles and ESG objectives. This will enable them to integrate these principles into their daily activities and strategic business decisions. The aim of this training is to ensure that all levels of management have full awareness of ESG topics and are able to implement and monitor initiatives that comply with these principles within the Group. Over the past year, significant achievements have been made in the area of ESG initiatives, further strengthening the commitment to sustainability and corporate responsibility.

The main actions include:

• Introduction of a control and audit system to ensure suppliers' compliance with the Code of Conduct, with a three-year audit plan (ESG Vendor Rating).
• Establishment of a cross-departmental role in product quality assurance at the Filago and Casoli locations.
• Update of materiality analysis with the involvement of suppliers and customers (presented to the Board of Directors in February 2024) and the voluntary implementation of the double materiality exercise.
• Development of environmental offset plans to maintain carbon neutrality for Scope 1 and 2, with partial coverage for 2024 through CER allowances.

In 2023, the Group achieved carbon neutrality for Scopes 1 and 2 for all its member companies.

Since 2016, based on 2015 figures, the Neodecortech Group has prepared the GRI-compliant Sustainability Report.

Starting from 2021, in a continued effort to increase its transparency also on data and events of a non-income, equity or financial nature, Neodecortech has chosen to implement its sustainability reporting, with the publication of the first consolidated non-financial statement (NFS) pursuant to Legislative Decree 254/2016, on a voluntary basis certified by a limited assurance by BDO Italia S.p.A., according to the criteria indicated by ISAE 3000 Revised.

Human resources and organization

There is no significant information relating to human resources that requires disclosure.

					30.06.2025	31 12 2024
PERSONNEL IN SERVICE	Printed Decorative Paper Division	Decorative Paper Division	Energy Division	NDT China Division	GROUP	GROUP
Executives	6	5	0	0	11	11
Managers/White collars	58	52	2	2	114	118
Blue collars	157	112	2	0	271	266
Trainees	1	2	0	0	3	3
Total	222	171	4	2	399	398

The Group's average headcount in first half 2025 was 399 units, in line with the number of units on the payroll at 31 December 2024. Additionally, 5 resources from Cartiere di Guarcino work on secondment at the subsidiary Bio Energia Guarcino.

To manage the drop in sales orders in first half 2025, the Group made use of CIGO: NDT zero hours and CDG 14,186 hours.

Atypical and/or unusual transactions during the year

In first half 2025, the Group did not carry out any significant transactions qualifying as non-recurring, atypical and/or unusual.

Significant events after 30 June 2025

On 2 July 2025, Neodecortech S.p.A. signed a new loan agreement with Banca Popolare di Sondrio totaling € 7 million, with a term of 84 months and a 12-month grace period, at the 3-month Euribor rate plus a 1% spread. The loan, guaranteed under the SACE Growth Convention, is intended to finance the investments planned in the Parent Company's business plan.

Compliance with the simplified system under Articles 70 and 71 of the Issuer Regulation

It should be noted that Neodecortech, pursuant to articles 70, paragraph 8 and 71, paragraph 1-bis, of the Regulation adopted by CONSOB through resolution no. 11971/1999, as supplemented and amended (the "Issuer Regulation"), complies with the opt-out system provided for by the above articles, availing itself of the right to depart from the obligations to publish the information documents envisaged in Annex 3B of the Issuer Regulation on the occasion of significant transactions relating to mergers, spin-offs and capital increases through contribution of assets in kind, acquisitions and transfers.

Treasury shares and shares of the Parent Company

Pursuant to Articles 2435-bis and 2428 of the Italian Civil Code, it should be noted that Neodecortech held no. 666,874 treasury shares at 30 June 2025 for a value of € 2,102,997.

The Shareholders' Meeting held on 29 April 2025 approved the additional purchase of ordinary shares of the Company, up to a maximum of 10% of the Company's share capital, equal to a maximum of no. 1,421,802 ordinary shares. The purchase of treasury shares may be made, in one or more tranches, within eighteen months.

From April to May 2025, Neodecortech continued with the purchase of additional treasury shares based on and within the limits of the above resolution.

At 30 June 2025 and during the six-month period, the Company did not hold and did not purchase shares in the parent company Finanziaria Valentini S.p.A..

Other information

Pursuant to paragraph 5 of Article 2497-bis of the Italian Civil Code, we certify that the Company is not subject to the direction and coordination of others.

The Shareholders' Meeting held on 29 April 2025 of the Parent Company Neodecortech S.p.A. approved the Financial Statements at 31 December 2024, allocating profit for the year of € 4,111,012.61 as follows:

• € 205,550.63 to the legal reserve;
• € 3,886,617.46 to the non-distributable revaluation reserve for investments recorded pursuant to Legislative Decree no. 38/05 Article 6, paragraph 1;
• € 18,844.52 to the extraordinary reserve;

The same Shareholders' Meeting resolved to distribute to shareholders an ordinary gross dividend of € 0.15 for each outstanding ordinary share, excluding treasury shares, with payment on 21 May 2025. The ex-dividend date is set for 19 May 2025 (No. 7, ISIN code IT0005275778), and the record date, which is the accounting day at the end of which the evidence of the accounts is authentic for the purposes of entitlement to payment of the dividend, is 20 May 2025.

Business and market outlook

The current geopolitical environment remains challenging, due to the ongoing Russian-Ukrainian war and the Israeli-Palestinian conflict, further compounded by tensions in other regions such as India-Pakistan and Thailand-Cambodia. Rising rivalry between global powers - particularly between the United States and China, but also between the United States and the European Union - adds to a climate of heightened uncertainty.

First half 2025 marked a pause in the downward trend in the order backlog that had affected both Neodecortech and Cartiere di Guarcino during the final months of 2024. Incoming orders have remained steady, aligning with the forecasts established. Nonetheless, making accurate predictions about the sales trend in the coming months continues to be difficult due to the uncertainties related to the application of tariffs between economic areas and the consequent effects within each of them. The geopolitical context we are experiencing is clearly having a strong impact on both consumer expectations regarding the propensity to purchase durable goods such as furniture, and on the markets for strategic raw materials used by the Group, with potential cost implications.

With regard to the trend of strategic raw materials, the following points apply to the individual business units: (i) for Neodecortech, the prices of strategic raw materials are expected to remain steady in second half 2025; (ii) for Cartiere di Guarcino, the raw material market shows mixed trends, with pulp rising in the first quarter, then retracing in the second quarter and closing the half-year with an increase of 60 USD in short fibre versus December 2024; by contrast, titanium dioxide declined in the first quarter and then showed signs of recovery in the second quarter; for the second half of the year, prices are expected to fall further in the third quarter before stabilizing or attempting a rebound in the fourth quarter; (iii) for Bio Energia Guarcino, bioliquids followed a generally steady trend during the reporting period, although their evolution will depend on possible macroeconomic signals as well as on trends in the relevant sectors, harvests, and stockpiles.

From a financial standpoint, despite the overall decline in interest rates and the resulting reduction in related financial expense, total financial expense increased in the consolidated financial statements due to the negative impact of foreign exchange hedging.

Lastly, the Group continues to pursue its sustainability policy through the implementation of various projects under the 2024 - 2026 ESG Plan, with a particular focus on reducing emissions, promoting circular use of materials, and advancing social initiatives.

With regard to the CONSOB notices of 7 March 2022, and subsequently of 19 May 2022, aimed at compliance with the restrictive measures adopted by the EU in response to the Russian military aggression in Ukraine, it should be noted that the Group is continuing to comply with all the measures introduced by the European Union. Additionally, from an IT point of view, the Group has adopted stringent business continuity plans, guaranteeing the full operation of back-ups, including offline solutions, to protect company systems and data from possible cyber-attacks, which could intensify as the Russian-Ukrainian conflict continues.

Each Division is analyzed more specifically below.

Decorative Paper Division - Neodecortech

In second half 2025, no major shifts in market sentiment are expected; demand remains subdued and competition intense within a still uncertain macroeconomic environment. While prices for key raw materials (paper, plastic films, resins, and inks) remain stable due to the static nature of the market, revenue continues to face downward pressure on price lists, hindering the desired margin recovery.

In this context, the product and sales mix is expected to gradually shift toward higher value-added offerings, particularly laminates and decorative plastic films, for which volume growth is anticipated. By contrast, performance of the "historical" paper-based products remains essentially flat.

The Company will continue to focus its resources on developing high-technical and high-quality solutions, alongside initiatives to streamline and rationalize its cost structure, in order to preserve profitability levels in a demand environment that remains challenging.

Paper Division - Cartiere di Guarcino

The customer order backlog at Cartiere improved versus both first half 2024 and 31 December 2024; however, considering the aforementioned domestic and international economic scenario, the future outlook should be approached with caution. Margins are particularly affected by tension in the prices of strategic raw materials, which, amid weak demand, complicate the ability to transfer these costs to end customers. This was considered in the development of expectations for 2025.

Energy Division - Bio Energia Guarcino

The BEG bioliquid power plant is included in the support framework for renewable energy production that ended in May 2025. Since 10 December 2023, it has benefited from the Guaranteed Minimum Prices (GMP) scheme under Article 5, paragraph 2 of Law Decree 181/2023, as defined by ARERA Resolution 306/2024.

The GMP scheme ensures the cost-effective operation of the power plant, due to the correlation of part of the reinstatement to the bioliquid market. the Milan grain association market or the Rotterdam market, depending on the type of bioliquid used. Regarding the bioliquid market, palm oil in particular, stricter environmental sustainability regulations were implemented starting in 2025. These regulations will include palm oil among those products subject to the EUDR and Low ILUC requirements. Soybean oil is also subject to EUDR regulations. BEG, for its part, is authorized to use and has been utilizing for several years now also bioliquids derived from animal and/or plant wastes, which are not directly impacted by these new regulations.

Filago (BG), 04 August 2025 For the Board of Directors The Chairman (Gianluca Valentini)

_________________________________

Condensed consolidated half-year financial statements at 30 June 2025

Consolidated income statement at 30 June 2025

(Euro thousands)	Notes	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Revenue from sales and services	1	90,425	100.0%	85,285	100.0%	5,140	6.0%
Changes in work in progress, semi-finished and finished	2
products		3,166	3.5%	734	0.9%	2,432	331.3%
Other revenue	3	919	1.0%	1,015	1.2%	(96)	(9.5%)
Value of Production		94,510	104.5%	87,034	102.1%	7,476	8.6%
Raw and ancillary materials and consum.	4	(60,471)	(66.9%)	(55,610)	(65.2%)	(4,861)	8.7%
Other operating expense	5	(13,163)	(14.6%)	(13,399)	(15.7%)	236	(1.8%)
Value Added		20,876	23.1%	18,025	21.1%	2,851	15.8%
Personnel expense	6	(11,639)	(12.9%)	(11,145)	(13.1%)	(494)	4.4%
EBITDA		9,237	10.2%	6,880	8.1%	2,357	34.3%
Amortization and depreciation	7	(4,856)	(5.4%)	(4,399)	(5.2%)	(457)	10.4%
Allocations	8	(35)	(0.0%)	(36)	(0.0%)	1	(2.8%)
EBIT		4,346	4.8%	2,445	2.9%	1,901	77.8%
Financial expense	9	(1,439)	(1.6%)	(1,339)	(1.6%)	(100)	7.5%
Financial income	10	269	0.3%	266	0.3%	3	1.1%
Profit/(loss) before tax		3,176	3.5%	1,372	1.6%	1,804	131.5%
Income tax	11	(409)	(0.5%)	(167)	(0.2%)	(242)	144.9%
Profit/(loss) for the year		2,767	3.1%	1,205	1.4%	1,562	129.6%
Of which Group profit/(loss) for the year		2,800		1,216
Of which Profit/(loss) for the year of non-controlling interests		(33)		(11)

Consolidated statement of comprehensive income at 30 June 2025

(Euro thousands)	30 JUNE 2025	30 JUNE 2024
Profit/(loss) for the year	2,767	1,205
Other items of the comprehensive income statement
Actuarial gains (losses) net of tax effect	3	53
Total items that will not be reclassified in the income statement for the
year	3	53
Gains/(losses) on cash flow hedging instruments	(24)	(9)
Total items that will or may be reclassified in the income statement for
the year	(24)	(9)
Total other items of the comprehensive income statement	(21)	44
Comprehensive income (loss) for the year	2,746	1,249
Profit for the year attributable to:
Shareholders of the Parent	2,779	1,260
Non-controlling interests	(33)	(11)
Earnings per share (in Euro):
Basic	0.21	0.09
Diluted	0.21	0.09

Consolidated statement of financial position at 30 June 2025

Assets	Notes	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
(Euro thousands)
Intangible assets	12	3,190	1.8%	3,317	1.9%	(127)	(3.8%)
Tangible assets	13	73,767	41.8%	74,480	42.9%	(713)	(1.0%)
Investments		0	0.0%	0	0.0%	0	0.0%
Other non-current assets	14	375	0.2%	358	0.2%	17	4.7%
Non-current financial receivables	15	481	0.3%	512	0.3%	(31)	(6.1%)
Deferred tax assets	16	1,008	0.6%	1,055	0.6%	(47)	(4.5%)
Non-current assets		78,821	44.7%	79,722	46.0%	(901)	(1.1%)
Inventory	17	47,816	27.1%	40,049	23.1%	7,767	19.4%
Trade receivables	18	25,963	14.7%	35,713	20.6%	(9,750)	(27.3%)
Receivables from tax consolidation	19	348	0.2%	348	0.2%	0	0.0%
Tax receivables	20	5,541	3.1%	1,989	1.1%	3,552	178.6%
Current financial receivables	15	0	0.0%	81	0.0%	(81)	(100%)
Other current receivables	21	12,355	7.0%	3,081	1.8%	9,274	301.0%
Cash funds	22	5,485	3.1%	12,483	7.2%	(6,998)	(56.1%)
Current assets		97,508	55.3%	93,744	54.0%	3,764	4.0%
Total assets		176,329	100.0%	173,466	100.0%	2,863	1.7%

Equity and liabilities		31
		30 JUNE 2025	%	DECEMBER 2024	%	Chg.	% chg.
(Euro thousands)
Share capital		18,804	10.7%	18,804	10.8%	0	0.0%
Share premium reserve		18,864	10.7%	18,864	10.9%	0	0.0%
Other reserves		31,937	18.1%	30,276	17.5%	1,661	5.5%
Prior years' profit (loss)		8,711	4.9%	8,761	5.1%	(50)	(0.6%)
Profit (loss) for the year		2,800	1.6%	4,057	2.3%	(1,257)	(31.0%)
Group equity		81,116	46.0%	80,762	46.6%	354	0.4%
Equity attributable to non-controlling interests		(23)	0.0%	43	0.0%	(66)	(153.5%)
Profit (loss) for the year attributable to non-controlling interests		(33)	0.0%	(80)	0.0%	47	(58.8%)
Total equity attributable to non-controlling interests		(57)	0.0%	(37)	0.0%	(20)	54.1%
Total equity	30	81,059	46.0%	80,725	46.5%	334	0.4%
Provisions for risks and charges	23	1,069	0.6%	771	0.4%	298	38.7%
Deferred tax	16	5,393	3.1%	5,534	3.2%	(141)	(2.5%)
Post-employment benefits	24	1,925	1.1%	2,091	1.2%	(166)	(7.9%)
Non-current financial liabilities	25	15,755	8.9%	19,968	11.5%	(4,213)	(21.1%)
Non-current liabilities		24,142	13.7%	28,364	16.4%	(4,222)	(14.9%)
Trade payables	26	33,794	19.2%	29,951	17.3%	3,843	12.8%
Payables from tax consolidation	27	217	0.1%	31	0.0%	186	600.0%
Tax payables	28	916	0.5%	1,244	0.7%	(328)	(26.4%)
Current financial liabilities	25	26,438	15.0%	25,689	14.8%	749	2.9%
Other current payables	29	9,763	5.5%	7,462	4.3%	2,301	30.8%
Current liabilities		71,128	40.3%	64,377	37.1%	6,751	10.5%

Total equity and liabilities	176,329	100.0%	173,466	100.0%	2,863	1.7%

Consolidated statement of changes in equity at 30 June 2025

	ATTRIBUTABLE TO THE SHAREHOLDERS OF THE PARENT
CONSOLIDATED FIGURES EURO THOUSANDS	NOTE S	SHARE CAPITA L	HEDGING AND TRANSLATIO N RESERVES	EQUITY RESERVE S	OTHER RESERVE S	TREASUR Y SHARES	PROFIT (LOSS) FOR THE YEAR	EQUITY	EQUITY NON CONTROLLIN G INTERESTS	TOTAL EQUITY
Balance at 01/01/2024	28	18,804	131	18,864	37,801	(986)	2,848	77,462	0	77,462
Other items of the comprehensive income
statement		0	(80)	0	27	0	0	(53)	0	(53)
Profit for the year		0	0	0	0	0	4,057	4,057	(80)	3,977
Total comprehensive income/loss for the
year		0	(80)	0	27	0	4,057	4,004	(80)	3,924
Dividend distribution		0	0	0	0	0	0	0	0	0
Allocation of prior year's profit (loss)		0	0	0	2,848	0	(2,848)	0	0	0
Other changes		0	(1)	0	(1)	(702)	0	(704)	43	(661)
Balance at 31/12/2024	28	18,804	50	18,864	40,675	(1,688)	4,057	80,762	(37)	80,725
Balance at 01/01/2025	28	18,804	50	18,864	40,675	(1,688)	4,057	80,762	(37)	80,725
Other items of the comprehensive income
statement		0	(24)	0	3	0	0	(21)	0	(21)
Profit for the year		0	0	0	0	0	2,800	2,800	(33)	2,767
Total comprehensive income/loss for the
year		0	(24)	0	3	0	2,800	2,779	(33)	2,746
Dividend distribution		0	0	0	(2,038)	0	0	(2,038)	0	(2,038)
Allocation of prior year's profit (loss)		0	0	0	4,057	0	(4,057)	0	0	0
Other changes		0	10	0	3	(400)	0	(387)	13	(374)
Balance at 30/06/2025	28	18,804	36	18,864	42,700	(2,088)	2,800	81,116	(57)	81,059

Consolidated statement of cash flows at 30 June 2025

(Euro thousands)	30 JUNE 2025	30 JUNE 2024
Profit (loss) for the year	2,767	1,205
Income tax	496	357
Deferred/(prepaid) tax	(88)	(190)
Interest expense/(interest income)	1,275	1,278
(Dividends received)	0	0
(Gains)/losses from disposal of assets	(6)	5
1 Profit (loss) for the year before income tax, interest,	4,444	2,655
dividends and gains/losses from disposals
Adjustments for non-monetary items that had no
balancing entry in net working capital:
Allocation to post-employment benefits	26	21
Allocations to other provisions	56	91
Amortization and depreciation of fixed assets	4,856	4,399
Write-downs for impairment losses	0	0
Other adjustments for non-monetary items	(21)	(236)
2 Cash flow before changes in NWC	9,361	6,930
Changes in net working capital:
Decrease/(increase) in receivables from customers	9,525	(9,045)
Decrease/(increase) in inventory	(7,869)	(1,407)
Increase/(decrease) in payables to suppliers	4,065	373
Decrease/(increase) in other receivables	(12,774)	(6,032)
Increase/(decrease) in other payables	1,943	1,516
Other changes in net working capital	0	0
3 Cash flow after changes in NWC	4,251	(7,665)
Other adjustments:
Interest received/(paid)	(1,140)	(1,196)
(Income tax paid)	(190)	(100)
(Gains)/losses from disposal of assets	0	0
Dividends received	0	0
(Utilization of provisions)	44	(9)
(Utilization of provisions for post-employment benefits)	(195)	(39)
4 Cash flow after other adjustments	2,770	(9,009)
A Cash flow from operations	2,770	(9,009)
Tangible fixed assets	(3,717)	(2,339)
(Purchase)	(3,732)	(2,359)
Disposal	15	20
Intangible fixed assets	(288)	(770)
(Purchase)	(288)	(770)
Disposal	0	0
Financial fixed assets	0	(47)
(Purchase)	0	(59)
Disposal	0	13
Current financial assets	0	0
(Purchase)	0	0
Disposal	0	0
Proceeds from disposal of assets	6	(5)
B Cash flow from investing activities	(3,999)	(3,161)

Liabilities	(3,331)	6,758
Increase (decrease) in short-term bank payables	1,321	3,219
New loans	0	6,500
Repayment of loan	(4,652)	(2,961)
Financial liabilities to other lenders	0	0
Change in financial receivables from other lenders	0	0
Equity	(2,438)	(423)
Share capital increase	0	0
Sale (purchase) of treasury shares	(400)	(423)
Other changes in equity	(2,038)	0
C Cash flow from financing activities	(5,769)	6,335
Increase (decrease) in cash funds (A ± B ± C)	(6,998)	(5,835)
Cash funds at 1 January	12,483	12,157
Cash funds at 30 June	5,485	6,322

Explanatory Notes to the Consolidated Financial Statements of the Group

Entity preparing the consolidated financial statements

Neodecortech S.p.A. (hereinafter also the "Company", the "Parent Company" or the "Controlling Company") is a company incorporated under Italian law, with registered office in Filago (BG), Strada Provinciale 2, at the head of the Neodecortech Group (hereinafter also the "Group"). The Company website is: www.neodecortech.it.

The Group is active in the production and marketing of decorative papers for the industrial sectors of wood and furnishing accessories.

On 5 March 2021, Borsa Italiana, under provision no. 8746, assigned the ordinary shares and warrants of Neodecortech S.p.A. the STAR qualification as per the Company's application dated 4 March 2021. The first trading day on the STAR segment was 15 March 2021.

The publication of these condensed consolidated half-year financial statements was approved by the Directors on 2 August 2024.

BDO Italia S.p.A. is in charge of the statutory audit.

General criteria for the preparation of the consolidated financial statements

Statement of compliance with IAS-IFRS

These condensed consolidated half-year financial statements were prepared in compliance with the IAS-IFRS international accounting standards in force at 31 December 2024, as adopted by the European Union, as well as with the provisions issued in implementation of Article 9 of Legislative Decree no. 38/2005, and in particular in accordance with IAS 34 regarding interim financial statements. The IAS-IFRS also include all the revised international accounting standards (IAS) and all the interpretations issued by the IFRS Interpretation Committee (formerly IFRIC), previously known as SIC. The rules of national legislation implementing EU Directive 2013/34 also apply, provided they are consistent, to companies that prepare their financial statements in accordance with IAS-IFRS. Therefore, the financial statements implement the relevant provisions of the articles of the Italian Civil Code and the corresponding provisions of the TUF for listed companies concerning the Directors' Report on Operations, the Independent Auditors' Report and the publication of the financial statements. The consolidated financial statements and the notes thereto also include the details and additional information required by the articles of the Italian Civil Code concerning financial statements, insofar as they do not conflict with the provisions of IAS-IFRS, as well as the other CONSOB regulations and instructions concerning financial statements.

The financial statements were prepared on a going concern basis. The Group has, in fact, assessed that, despite the volatility of the general economic and financial environment marked by the conflict in Ukraine, there are no significant uncertainties surrounding its ability to continue operations, due also to its financial structure and the 2025 forecasts, as explained in the "Directors' Report on Operations".

Preparation criteria and functional currency

The consolidated accounts are prepared in accordance with the cost principle, with the exception of derivative financial instruments and financial assets, which are measured at fair value.

The presentation currency used in the consolidated financial statements is the Euro, which is the functional currency of the Parent Company, Neodecortech S.p.A., and its other subsidiaries. All the amounts contained in the financial statements and the notes are rounded to the nearest Euro unit, unless otherwise indicated

Financial statements and presentation criteria

The condensed consolidated half-year financial statements comprise the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity and the consolidated statement of cash flows, as well as the explanatory notes for the six months ended 30 June 2025.

Regarding the presentation of the financial statements, the Group opted for the following approach:

• current and non-current assets and current and non-current liabilities are shown separately in the statement of financial position. Current assets, which include cash and cash equivalents, are those intended to be realized, sold or consumed in the Group's normal operating cycle; current liabilities are those expected to be settled in the Group's normal operating cycle or in the twelve months following the end of the period;
• for the income statement, the analysis of costs is carried out based on the nature of the costs;
• for the statement of comprehensive income, the Group has chosen to present two statements: the first shows the traditional income statement components with the result for the period, while the second, starting from this result, shows in detail the other components, i.e. (i) changes in fair value of derivative financial instruments designated as hedge accounting, and (ii) the effects of the re-measurement of defined benefit plans;
• the statement of cash flows was prepared using the indirect method.

The accounting standards adopted in the preparation of the condensed consolidated half-year financial statements are the same as those used for the consolidated financial statements at 31 December 2024, with the exception of the adoption of the new standards and amendments effective as of 1 January 2025. The Group has not adopted in advance any new standards, interpretations or amendments issued but not yet in force.

An amendment applied for the first time in 2025 but had no impact on the Group's condensed consolidated half-year financial statements.

Lack of Exchangeability - Amendments to IAS 21: The amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates clarify how an entity should assess whether a currency is exchangeable and how to determine the spot exchange rate when it is not. The amendments also introduce disclosure requirements that allow financial statement users to understand how a non-exchangeable currency affects - or is expected to affect - the entity's operating results, financial position, and cash flows. The amendments take effect as of the years beginning on or after 1 January 2025. When applying the changes, the entity is not permitted to restate comparative information.

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

Consolidation methods

The consolidated financial statements were prepared on the basis of the financial statements at 30 June 2025 prepared by the Parent Company Neodecortech S.p.A. and the consolidated companies, in accordance with the accounting standards adopted by the Group.

The administrative period and the closing date for the preparation of the Consolidated Financial Statements correspond to those of the financial statements of the Parent Company and all consolidated companies.

Subsidiaries

Subsidiaries are those entities in which the Group is exposed to variable returns, or holds rights to those returns, arising from its relationship with those entities and at the same time has the ability to affect those returns by exercising its power.

The Group assesses entity control through the presence of three elements:

• power: current ability of the Group, deriving from substantive rights, to direct the relevant activities of the businesses that significantly affect the entity's returns;
• the Group's exposure to variability in the returns of the investee;
• correlation between power and returns, the Group has the ability to exercise its power to affect the returns from such relationship.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control is assumed until the date on which such control ceases.

Consolidation scope

The list of companies over which Neodecortech S.p.A. exercises control, and are therefore included in these consolidated financial statements, is shown in the table below:

Company name	Registered office	Share Capital	Consolidation method		% held
Cartiere di Guarcino S.p.A.	Guarcino (IT)	10,000,000 €		Full	100%
Bio Energia Guarcino S.r.l.*	Guarcino (IT)	1,100,000 €		Full	100%
NDT energy S.r.l.	Casoli di Atri (TE)	100,000 €		Full	100%
Changzhou NDT new material technology company Ltd	Changzhou (China)	2,000,000 CNY		Full	70%

* Controlled indirectly through Cartiere di Guarcino S.p.A.

Mention should be made as a change from the prior year of the inclusion of the Chinese-registered subsidiary Changzhou NDT new material technology company Ltd. in the consolidation scope.

In April 2025, the share capital of the Chinese subsidiary Changzhou NDT New Material Technology Company Ltd. was increased to CNY 2 million to support business development in the Chinese and Far East markets. Each shareholder contributed their respective portion, with no change in the shareholding structure.

The table below shows the reconciliation of Parent Company equity and profit for the period with the corresponding consolidated figures.

CONSOLIDATED FIGURES IN EURO THOUSANDS	EQUITY 30 JUNE 2025	PROFIT (LOSS) FOR THE YEAR 30 JUNE 2025	EQUITY 31 DECEMBER 2024	PROFIT (LOSS) FOR THE YEAR 31 DECEMBER 2024
Equity and profit for the period attributable to the parent company	81,162	2,804	80,818	4,111
Elimination of the carrying amount of consolidated investments:
Difference between carrying amount and pro-rata amount of equity	(1)		-
Currency translation difference	9		(1)
Pro-rata results of investees		4,436		7,184
Cancellation of write-downs/write-backs of investments		(4,327)		(7,044)
Amortization of fair value of fixed assets (allocation of BEG goodwill)		(81)		(162)
Elimination of the effects of transactions between consolidated companies:
Intercompany profits included in the value of closing inventory	-	(27)	-	22
Intercompany profits on disposal of fixed assets	(54)	(5)	(54)	(54)
Equity and profit for the year attributable to the shareholders of the parent	81,116	2,800	80,762	4,057
Non-controlling interests	(57)	(33)	(37)	(79)
Total equity	81,059	2,767	80,725	3,978

Subjective evaluations and use of estimates

The preparation of the financial statements and the notes thereto, in application of the IAS-IFRS, requires Management to make estimates and assumptions that affect the carrying amounts of assets and liabilities and disclosures on contingent assets and liabilities as of the reporting date, as well as the amount of revenue and costs in the reporting period presented. Estimates and assumptions used are based on experience and on other factors considered significant. Actual results may differ from these estimates. Estimates and assumptions are reviewed regularly and the effects of each variation therein are recognized in profit and loss in the period in which the estimate was revised. The effects of such revisions are reflected in the periods on which they have effect, i.e. both in the current period, and in future periods, if relevant.

To provide a better understanding of the Condensed Consolidated Half-Year Financial Statements, the following are the most significant estimates adopted in the process of their preparation, as they involve a high level of subjective judgments, assumptions and estimates relating to issues that are by their nature uncertain, especially in the current context of the conflict in Ukraine. Changes in the conditions underlying the judgments and assumptions made could have a material impact on subsequent results.

Measurement of receivables: receivables from clients are adjusted by the related allowance for doubtful accounts to take account of their recoverable value. The determination of the amount of the write-downs requires the directors to perform subjective evaluations based on past experience for similar receivables or current and historical past dues, closing rates, losses and collections, and to carefully monitor credit quality, especially in the current context of the COVID-19 pandemic and the Russian-Ukrainian conflict;

• Measurement of inventory: obsolescent inventory is periodically measured and written down if the net realizable value is lower than the carrying amount. Write-downs are calculated on the basis of Management's assumptions and estimates, based on their experience and sales forecasts;
• Measurement of deferred tax assets: deferred tax assets whose recovery in future years is considered highly probable - are measured on the basis of the expected taxable income in future years. The measurement of such expected taxable income depends on factors that may vary over time and have significant effects on the measurement of deferred tax assets;
• Income tax: the calculation of the Group's tax liability requires Management to measure transactions whose tax implications are not certain at the balance sheet date;
• Impairment of intangible and tangible assets with finite useful life: these assets undergo an impairment test to ascertain whether there has been an impairment, which must be recognized by means of a write-down, when there are indications of a difficulty in recovering the related net book value through use. Ascertainment of the existence of the above indicators requires the Directors to make subjective assessments based on information available within the Group and from the market, as well as statistics. Additionally, if it is determined that a potential impairment may have occurred, the Group determines it using appropriate measurement techniques. The proper identification of the elements pointing to the existence of a potential impairment, as well as the estimates used to determine them, depend on factors that may change over time and that are subject to uncertainties and the use of estimates (growth rates, rates of return on assets, and financial projections affected by external, non-controllable variables) that affect the valuations and estimates made by the Directors;
• Measurement of intangible and tangible assets with finite useful life: tangible and intangible assets with finite useful life are depreciated/amortized over the estimated useful life of the related assets. The useful life of the assets is determined by the Directors at the time the asset is acquired; it is based on historical experience for similar fixed assets, market conditions and anticipations of future events that could have an impact on the useful life. Therefore, the actual useful life may differ from the estimated useful life. The Group regularly assesses technological and industry changes to update the remaining useful life. This regular update could lead to a change in the amortization/depreciation period and therefore also in the amortization/depreciation charge for future years.
• Pension plans: the present value of the liability for pension benefits depends on a number of factors that are determined by actuarial methods using certain assumptions. The assumptions regard the discount rate, the expected return on the assets servicing the plan, the rates of future salary increases, and the mortality and resignation rates. Any change in the above assumptions could have significant effects on the liability for pension benefits;
• Valuation of risk provisions: the Group is subject to legal and tax lawsuits that may arise from complex and difficult issues, which are subject to a varying degree of uncertainty, including facts and circumstances underlying each case, jurisdiction and different applicable laws. Given the uncertainties underlying these issues, it is difficult to accurately predict the outlay that could arise from such disputes. Accordingly, after hearing the opinion of their legal and tax advisors and experts, the Directors recognize a liability from such disputes when they consider it probable that a financial outlay will occur and when the amount of the resulting losses can be reasonably estimated. This estimate implies the adoption of assumptions that depend on factors that may change over time and which could therefore have significant effects over the current estimates made by the Directors in preparing the Group's consolidated financial statements;
• Determination of fair value: the fair value of certain financial assets that are not listed on active markets is determined using measurement techniques. The Group uses measurement techniques that use inputs that are directly or indirectly observable in the market at year end, related to the assets being measured. While the

estimates of the abovementioned fair values are deemed reasonable, possible changes in the estimation factors on which the calculation of these values is based may produce different valuations.

Additionally, in the preparation of these consolidated half-year financial statements, the subjective assessments in the application of Group accounting standards and the main sources of estimation uncertainty were the same as those applied in the preparation of the consolidated financial statements for the year ended 31 December 2024.

Segment reporting

The Group's areas of operation, which constitute the segment reporting under IFRS 8, are as follows and correspond to the activities carried out by the Parent Company and its subsidiaries Cartiere di Guarcino S.p.A., Bio Energia Guarcino S.r.l., and Changzhou NDT New Material Technology Company Ltd.:

• Printed Decorative Paper Division Neodecortech S.p.A.
• Decorative Paper Division Cartiere di Guarcino S.p.A.
• Energy Division Bio Energia Guarcino S.r.l.
• China Division Changzhou NDT new material technology company Ltd

The Group's management and organizational structure reflects the segment reporting by business activity as described above. Operating segments are identified on the basis of the elements that the Group's highest decision-making level uses to make its decisions regarding the allocation of resources and the assessment of results.

The table below shows the segment figures relating to revenue and income and results at 30 June 2025 and, below, at 30 June 2024:

30 June 2025

(Euro thousands)	Printed Decorative Paper Division	% on	Revenue Decorative Paper Division	% on Revenue	BEG Energy Division	% on Revenue	NDTe Energy Division	% on Revenue	NDT China Division	% on Revenue	Aggregate	Eliminations and consolidation entries	Consolidated	% on Revenue
Revenue from sales and services	34,926	100.0%	35,908	100.0%	27,971	100.0%	0	0.0%	115	100.0%	98,920	8,495	90,425	100.0%
Changes in work in progress, semi-finished and finished products	2,161		1,005		0		0		0		3,166	0	3,166
Other revenue	857	6.2%	414	2.8%	-6	0.0%	0	0.0%	0	0.0%	1,265	346	919	3.5%
Value of Production	37,944	2.5% 108.6%	37,327	1.2% 104.0%	27,965	(0.0%) 100.0%	0	0.0% 0.0%	115	0.0% 100.0%	103,351	8,841	94,510	1.0% 104.5%
Raw and ancillary materials
and consumables	(22,846)	(65.4%)	(23,047)		(64.2%) (21,916)	(78.4%)	0	0.0%	(81)	(70.4%)	(67,889)	(7,418)	(60,471)	(66.9%)
Other operating expense	(6,134)	(17.6%)	(6,503)	(18.1%)	(1,677)	(6.0%)	(27)	0.0%	(57)	(49.6%)	(14,398)	(1,235)	(13,163)	(14.6%)
Value Added	8,964	25.7%	7,777	21.7%	4,372	15.6%	(27)	(0.0%)	(23)	(20.0%)	21,064	188	20,876	23.1%
Personnel expense	(6,352)	(18.2%)	(5,131)	(14.3%)	(250)	(0.9%)	0	0.0%	(46)	(40.0%)	(11,779)	(140)	(11,639)	(12.9%)
EBITDA	2,612	7.5%	2,646	7.4%	4,122	14.7%	(27)	(0.0%)	(69)	(60.0%)	9,285	48	9,237	10.2%
Amortization and depreciation	(1,831)	(5.2%)	(1,504)	(4.2%)	(1,393)	(5.0%)	0	0.0%	(19)	(16.5%)	(4,747)	109	(4,856)	(5.4%)
Allocations	(35)	(0.1%)	0	0.0%	0	0.0%	0	0.0%	0	0.0%	(35)	0	(35)	(0.0%)

EBIT	746	2.1%	1,142	3.2%	2,729	9.8%	(27)	(0.0%)	(88)	(76.5%)	4,503	157	4,346	4.8%
Financial expense	(341)	(1.0%)	(971)	(2.7%)	(323)	(1.2%)	0	0.0%	(24)	(20.9%)	(1,659)	(220)	(1,439)	(1.6%)
Financial income	2,421	6.9%	2,388	6.7%	7	0.0%	0	0.0%	0	0.0%	4,816	4,547	269	0.3%
Profit/(loss) before tax	2,826	8.1%	2,559	7.1%	2,413	8.6%	(27)	(0.0%)	(112)	(97.4%)	7,660	4,484	3,176	3.5%
Income tax	(22)	(0.1%)	(176)	(0.5%)	(255)	(0.9%)	0	0.0%	0	0.0%	(453)	(44)	(409)	(0.5%)
Profit/(loss) for the year	2,804	8.0%	2,383	6.6%	2,158	7.7%	(27)	(0.0%)	(112)	(97.4%)	7,207	4,440	2,767	3.1%

30 June 2024

(Euro thousands)	Printed Decorative Paper Division	% on	Revenue Decorative Paper Division	% on Revenue	Energy Division	% on Revenue	NDTe Energy Division	% on Revenue	NDT China Division	% on Revenue	Aggregate	Eliminations and consolidation entries	Consolidated	% on Revenue
Revenue from sales and
services	35,350	100.0%	40,847	100.0%	20,540	100.0%	0	0.0%	14	100.0%	96,751	11,466	85,285	100.0%
Changes in work in progress, semi-finished and finished products
	1,269	3.6%	(535)	(1.3%)	0	0.0%	0	0.0%	0	0.0%	734	0	734	0.9%
Other revenue	740	2.1%	497	1.2%	213	1.0%	0	0.0%	0	0.0%	1,449	434	1,015	1.2%
Value of Production	37,359	105.7%	40,809	99.9%	20,753	101.0%	0	0.0%	14	100.0%	98,934	11,900	87,034	102.1%
Raw and ancillary materials
and consumables	(22,180)	(62.7%)	(25,446)		(62.3%) (16,733)	(81.5%)	0	0.0%	(21)	(150.0%)	(64,380)	(8,770)	(55,610)	(65.2%)
Other operating expense	(5,828)	(16.5%)	(8,305)	(20.3%)	(2,221)	(10.8%)	(17)	(0.0%)	(12)	(85.7%)	(16,382)	(2,983)	(13,399)	(15.7%)
Value Added	9,351	26.5%	7,058	17.3%	1,799	8.8%	(17)	(0.0%)	(19)	(135.7%)	18,172	147	18,025	21.1%
Personnel expense	(6,089)	(17.2%)	(4,952)	(12.1%)	(232)	(1.1%)	0	0.0%	(14)	(100.0%)	(11,287)	(142)	(11,145)	(13.1%)
EBITDA	3,262	9.2%	2,106	5.2%	1,567	7.6%	(17)	(0.0%)	(33)	(235.7%)	6,885	5	6,880	8.1%
Amortization and depreciation	(1,549)	(4.4%)	(1,350)	(3.3%)	(1,385)	(6.7%)	0	0.0%	(3)	(21.4%)	(4,286)	113	(4,399)	(5.2%)
Allocations	(36)	(0.1%)	0	0.0%	0	0.0%	0	0.0%	0	0.0%	(36)	0	(36)	(0.0%)
EBIT	1,677	4.7%	756	1.9%	182	0.9%	(17)	(0.0%)	(36)	(257.1%)	2,563	118	2,445	2.9%
Financial expense	(479)	(1.4%)	(925)	(2.3%)	(373)	(1.8%)	0	0.0%	0	0.0%	(1,777)	(438)	(1,339)	(1.6%)
Financial income	261	0.7%	232	0.6%	6	0.0%	0	0.0%	0	0.0%	499	233	266	0.3%
Profit/(loss) before tax	1,459	4.1%	63	0.2%	-185	(0.9%)	(17)	(0.0%)	(36)	(257.1%)	1,285	(87)	1,372	1.6%
Income tax	(243)	(0.7%)	(68)	(0.2%)	110	0.5%	0	0.0%	0	0.0%	(201)	(34)	(167)	(0.2%)
Profit/(loss) for the year	1,216	3.4%	-5	(0.0%)	-75	(0.4%)	(17)	(0.0%)	(36)	(257.1%)	1,084	(121)	1,205	1.4%

At 30 June 2025, the table below shows revenue broken down by type of business.

(Euro thousands)	Printed Decorative Paper Division	Decorative Paper Division	Energia Guarcino Division	NDT China Division	Aggregate
Revenue from the sale of goods	31,035	34,702		115	65,852
Revenue from services	3,891	1,206			5,097
Revenue from the sale of electricity and steam			6,859		6,859
Revenue from ordinary incentives			5,526		5,526
Guaranteed Minimum Prices			15,586		15,586
Total by segment	34,926	35,908	27,971	115	98,920

The table below shows segment balance sheet and financial position figures at 30 June 2025 and, below, at 31 December 2024:

30 June 2025

(Euro thousands)	Printed Decorative Paper Division	Decorative Paper Division	BEG Energy Division	NDTe Energy Division	NDT China	Aggregate	Eliminations and consolidation entries	Consolidated
Intangible assets	1,967	1,097	126	0	54	3,244	(54)	3,190
Tangible assets	31,970	39,255	2,282	25	121	73,653	114	73,767
Investments	46,930	12,431	0	0	0	59,361	(59,361)	0
Other non-current assets/financial receivables	389	467	0	0	0	856	0	856
Deferred tax assets	596	198	167	0	0	961	47	1,008
Non-current assets	81,852	53,448	2,575	25	175	138,075	(59,254)	78,821
Inventory	12,798	30,831	4,354	0	0	47,983	(167)	47,816
Trade receivables	12,843	9,912	3,165	0	15	25,935	28	25,963
Receivables from tax consolidation	13	0	335	0	0	348	0	348
Tax receivables	1,765	577	3,172	21	6	5,541	0	5,541
Current financial receivables	170	0	35	0	0	205	(205)	0
Other receivables	653	1,095	10,607	0	0	12,355	0	12,355
Cash funds	1,473	2,434	1,459	53	66	5,485	0	5,485
Current assets	29,715	44,849	23,127	74	87	97,852	(344)	97,508
Assets	111,567	98,297	25,702	99	262	235,927	(59,598)	176,329
Equity	81,162	46,966	12,351	84	(181)	140,382	(59,323)	81,059
Provisions for risks and charges	376	805	20	0	0	1,201	(132)	1,069
Deferred tax	2,332	2,951	77	0	0	5,360	33	5,393
Post-employment benefits	565	1,323	37	0	0	1,925	0	1,925
Non-current financial liabilities	5,179	10,576	0	0	0	15,755	0	15,755
Non-current liabilities	8,452	15,655	134	0	0	24,241	(99)	24,142
Trade payables	9,091	16,538	7,850	14	272	33,765	29	33,794
Payables from tax consolidation	45	109	63	0	0	217	0	217
Tax payables	182	382	351	1	0	916	0	916
Current financial liabilities	5,895	15,925	4,823	0	0	26,643	(205)	26,438
Other current payables	6,740	2,722	130	0	171	9,763	0	9,763
Current liabilities	21,953	35,676	13,217	15	443	71,304	(176)	71,128
Equity and liabilities	111,567	98,297	25,702	99	262	235,927	(59,598)	176,329

31 December 2024

(Euro thousands)	Printed Decorative Paper Division	Decorative Paper Division	BEG Energy Division	NDTe Energy Division	NDT China	Aggregate	Eliminations and consolidation entries	Consolidated
Intangible assets	2,093	1,083	141	0	54	3,371	(54)	3,317
Tangible assets	32,339	38,136	3,635	25	118	74,253	227	74,480
Investments	46,727	10,353	0	0	0	57,080	(57,080)	0
Other non-current assets/financial receivables	404	467	0	0	0	871	(1)	870
Deferred tax assets	520	198	302	0	0	1,020	35	1,055
Non-current assets	82,083	50,237	4,078	25	172	136,595	(56,873)	79,722
Inventory	9,455	27,356	3,365	0	0	40,176	(127)	40,049

Trade receivables	11,718	6,626	18,714	0	6	37,064	(1,351)	35,713
Receivables from tax consolidation	13	0	335	0	0	348	0	348
Tax receivables	530	31	1,406	17	5	1,989	0	1,989
Current financial receivables	4,216	6,090	0	0	0	10,306	(10,225)	81
Other receivables	430	945	1,781	0	0	3,156	(75)	3,081
Cash funds	1,629	8,927	1,714	84	129	12,483	0	12,483
Current assets	27,991	49,975	27,315	101	140	105,522	(11,778)	93,744
Assets	110,074	100,212	31,393	126	312	242,117	(68,651)	173,466
						0
Equity	80,818	46,707	10,192	111	(126)	137,702	(56,977)	80,725
Provisions for risks and charges	296	542	20	0	0	858	(87)	771
Deferred tax	2,346	2,968	155	0	0	5,469	65	5,534
Post-employment benefits	693	1,362	36	0	0	2,091	0	2,091
Non-current financial liabilities	7,334	12,634	0	0	0	19,968	0	19,968
Non-current liabilities	10,669	17,506	211	0	0	28,386	(22)	28,364
Trade payables	7,264	14,378	9,376	14	272	31,304	(1,353)	29,951
Payables from tax consolidation	0	31	0	0	0	31	0	31
Tax payables	645	335	263	1	0	1,244	0	1,244
Current financial liabilities	5,722	18,962	11,230	0	0	35,914	(10,225)	25,689
Other current payables	4,956	2,293	121	0	166	7,536	(74)	7,462
Current liabilities	18,587	35,999	20,990	15	438	76,029	(11,652)	64,377
Equity and liabilities	110,074	100,212	31,393	126	312	242,117	(68,651)	173,466

Management of financial risks

The Board of Directors of Neodecortech S.p.A. adopts a consistent policy with a view to reducing the financial risks the Neodecortech Group is exposed to in the course of business.

As the Group's activities are essentially industrial, the use of instruments is limited to transactions to hedge the risks connected with its operations, thus excluding speculative policies or policies that pursue purely financial profit objectives.

The financial instruments applicable to the sector are only those that allow for the funding and use of the financial means required to carry out operations. Therefore, the amounts, terms and maturities of the financial instruments must be appropriate to the operations they are linked to.

Liquidity risk

In connection to its debt position, the Group is exposed to liquidity risk, namely the risk of being unable to raise the funds required to service and repay existing loans.

In order to minimize this risk, the Treasury and Credit area puts these activities in place:

• ongoing assessment of forecast financial requirements in order to put in place the necessary actions in a timely manner;
• negotiation of appropriate credit facilities;
• the correct composition of net financial debt, i.e. to finance capital expenditure using medium/long-term debt (in addition to equity), while covering net working capital requirements using short-term lines of credit;
• inclusion of Group companies in loan agreements in order to optimize any excess liquidity among companies.

Reference should be made to the Directors' Report on Operations and to Note 25 "Non-current financial liabilities" and "Current financial liabilities" for further details of the loans taken out.

At 30 June 2025, the Group has an outstanding loan agreement containing covenants tied to compliance with financial or capital ratios.

Credit risk

The Group is subject to credit risk relating to the sales of products in its core markets. The policies set out the criteria for establishing customer creditworthiness, credit facilities and related risk containment measures. The policies also envisage the assignment of responsibilities for approving any breaches of such limits and for preparing management reports.

The review of overdue receivables provides the following analysis by due date:

Trade receivables	Overall total	Total falling due	Total past due	Past due 0 - 30	Past due 31 - 60	Past due 61 - 90	Past due 91 - 120	Past due over 120
30 JUNE 2025	26,572	19,548	7,024	5,668	87	259	22	988
Trade receivables	Overall total	Total falling due	Total past due	Past due 0 - 30	Past due 31 - 60	Past due 61 - 90	Past due 91 - 120	Past due over 120
31 DECEMBER 2024	36,322	31,465	4,858	3,831	213	(22)	6	830

As the Group's exposure to customers is represented mainly by receivables from companies in the furniture and flooring sector, it is reasonable to estimate that there are no noteworthy solvency risks. Special cases are systematically reviewed and, where deemed necessary, a specific provision for impairment is made.

Also included in past dues between 0-30 days are mainly collection of cash orders due on 30 June 2025, but credited by the bank on the first business day of the following month.

The general risk associated with overall exposure to customers is assessed on a statistical basis, by reviewing the historical series of insolvencies and realized losses per year, to which average percentages of probable uncollectability are associated, in connection to the age of the receivable.

Changes in the provision for doubtful accounts at 30 June 2025 are shown below:

	Provision for doubtful accounts
(Euro thousands)
	31 DECEMBER 2024	Allocations	Utilization	Release	30 JUNE 2025
Changes in Provision for Doubtful Accounts	609	0	0	0		609
Total provision for doubtful accounts	609	0	0	0		609

Actions aimed at limiting risk include the continued controls made in the year to assess and analyze the higher risk situations on a monthly basis, and the implementation of credit insurance policies at Neodecortech S.p.A. and Cartiere di Guarcino S.p.A. in the manner deemed appropriate.

Exchange rate risk

By focusing its sales on the Italian and European markets of the Euro zone, the Group is exposed to the risk of fluctuations in exchange rates to a limited extent and primarily in relation to the purchase of certain raw materials (pulp and titanium dioxide), whose transactions are partly denominated in currencies other than the Euro, primarily in US dollars.

At 30 June 2025, the subsidiary Cartiere di Guarcino S.p.A. held forward purchase contracts in US dollars with a notional value of € 3,513 thousand, showing a negative fair value of € -263 thousand (fair value of € +81 thousand at 31 December 2024).

Interest rate risk

The risk is represented by the likelihood that the value or future cash-flows of a financial instrument - in particular, current account overdrafts, bank advances and loans - may vary parallel to changes in interest rates. Total medium/long-term loans at 30 June 2025 amounted to € 24,326 thousand, of which approximately 73% are at floating rate not hedged by derivative contracts.

To mitigate the above risk, the Parent Company entered into an Interest Rate Swap contract relating to the outstanding mortgage loan with BPM, with a notional value of € 2,862 thousand and a positive fair value of € 36 thousand at 30 June 2025 (positive € 67 thousand at 31 December 2024).

Fair value hierarchy and classes of financial instruments

In order to determine and document the fair value of financial instruments, use was made of the following hierarchy based on different valuation techniques:

• Level 1: the data used in the measurements are represented by quoted prices on markets where assets and liabilities identical to those being measured are traded;
• Level 2: the data used in the measurements, other than the quoted prices referred to in Level 1, are observable for the financial asset or liability, either directly (prices) or indirectly (derived from prices);
• Level 3: non-observable data; if observable data are unavailable and, therefore, there is a modest or non-existent market activity for the assets and liabilities being measured.

It should be noted that in choosing the measurement techniques to use, the Group has followed the following hierarchy:

• use of prices recorded in markets (even if not active) of identical (Recent Transactions) or similar instruments (Comparable Approach);
• measurement techniques based primarily on observable market inputs;
• measurement techniques based primarily on unobservable inputs corroborated by market data.

At 30 June 2025, the Group measured the fair value of derivative financial instruments using inputs that resulted in the financial instruments being categorized in Level 2 of the fair value hierarchy. No changes were reported during the period in the different levels of fair value.

With regard to the classes of financial instruments, as in prior years, the derivatives indicated above represent the only category of financial instruments measured at fair value. Other financial assets and liabilities are measured using the amortized cost method.

Information on the fair value of derivative financial instruments

The following information is provided on the fair value of derivative financial instruments in place at 30 June 2025:

• Currency Rate Hedging contract against the fluctuation risk of the US dollar entered into by Cartiere di Guarcino S.p.A. - Notional value at 30 June 2025 USD 3,513 thousand - Fair value at 30 June 2025 € -263 thousand (fair value +81 thousand at 31 December 2024);
• Interest Rate Swap Contract hedging the risk of interest rate fluctuations entered into by Neodecortech S.p.A. Notional value at 30 June 2025 € 2,862,106 - Fair value at 30 June 2025 € +35,633 (€ +66,767 at 31 December 2024);

In 2020, five loan agreements were also concluded for a total of € 10,000 thousand, underlying which there are embedded derivatives (floor at zero on Euribor rate). For four of these, for a total of € 8,000 thousand, the embedded derivatives are active at 30 June 2025, and have therefore been separated and measured and, at the same date, have a negative fair value lower than € 100.

Consolidated income statement

1. REVENUE FROM SALES AND SERVICES

The table below provides a breakdown of this item for first half 2025 versus first half 2024:

Revenue from sales and services
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Revenue from sales	86,088	95.2	80,632	94.5	5,456	6.8
Services	4,337	4.8	4,653	5.5	(316)	(6.8)
Total revenue from sales and services	90,425	100.0	85,285	100.0	5,140	6.0

In order to provide adequate disclosure of the nature and characteristics of revenue, see the comments appearing in the Directors' Report on Operations.

It should be noted that services consist mainly of the item "Impregnation under contract work" of the Parent Company for the amount of approximately € 3,885 thousand at 30 June 2025 (€ 3,907 thousand at 30 June 2024).

2. CHANGES IN SEMI-FINISHED AND FINISHED PRODUCTS

Inventory closes with a positive € 3,166 thousand at 30 June 2025 versus a positive change of € 734 thousand at 30 June 2024, related mainly to the postponement of certain sales to second half 2025.

3. OTHER REVENUE AND INCOME

Other revenue and income
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Contingent assets	51	5.5	100	9.9	-49	(49.0)
Sale of raw materials and packaging	3	0.3	13	1.3	(10)	(76.9)
Exchange rate gains	219	23.8	48	4.7	171	356.3
Gains	11	1.2	0	0.0	11	0.0
Insurance reimbursements	39	4.2	7	0.7	32	457.1
Other revenue	596	64.9	847	83.4	(251)	(29.6)
Total other revenue and income	919	100.0	1,015	100.0	-96	-9.5

Other revenue at 30 June 2025 includes the reversal of plant grants of € 231 thousand of the parent company, € 84 thousand in statutory grants of the subsidiary CDG, and chargebacks for € 163 thousand.

4. RAW AND ANCILLARY MATERIALS AND CONSUMABLES

Raw and ancillary materials and consumables
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Raw and ancillary materials and consumables	59,522	98.4	54,621	98.2	4,901	9.0
Packaging materials	949	1.6	989	1.8	(40)	(4.0)
Total raw materials	60,471	100.0	55,610	100.0	4,861	8.7

The increase in consumption of raw and ancillary materials slightly outpaced the growth in sales (+9.0%) and was related to the inventory increase. Including this effect, the change is consistent, confirming overall stability in raw material prices.

5. OTHER OPERATING EXPENSE

Other operating expense
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Utilities	4,174	31.7	3,644	27.2	530	14.5
Sundry industrial services	1,959	14.9	2,385	17.8	(426)	(17.9)
Transport	1,751	13.3	2,122	15.8	(371)	(17.5)
Other services	1,328	10.1	1,134	8.5	194	17.1
Consultancy	783	5.9	893	6.7	(110)	(12.3)
Fees to Directors and Board of Statutory Auditors	596	4.5	565	4.2	31	5.5
Insurance	596	4.5	657	4.9	(61)	(9.3)
Bonuses and commissions	510	3.9	576	4.3	(66)	(11.5)
Tax and duties	445	3.4	390	2.9	55	14.1
Advertising and marketing	413	3.1	279	2.1	134	48.0
Exchange rate losses	155	1.2	17	0.1	138	811.8
Travel expense	147	1.1	95	0.7	52	54.7
Bank commissions	108	0.8	165	1.2	(57)	(34.5)
Rentals and other	86	0.7	137	1.0	(51)	(37.2)
External processing	82	0.6	8	0.1	74	925.0
Rental expense	10	0.1	4	0.0	6	150.0
Other operating expense	10	0.1	38	0.3	(28)	(73.7)
Reimbursements to employees	5	0.0	14	0.1	(9)	(64.3)
Capital losses	5	0.0	5	0.0	0	0.0
Gifts	0	0.0	0	0.0	0	0.0
Contingent liabilities	0	0.0	271	2.0	(271)	(100.0)
Total Other Operating Expense	13,163	100.0	13,399	100.0	(236)	(1.8)

Other operating expense remained essentially steady versus the prior year.

6. PERSONNEL EXPENSE

	Personnel expense
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Wages and salaries	8,527	73.3	8,030	72.1	497	6.2
Social security charges	2,491	21.4	2,467	22.1	24	1.0
Post-employment benefits	529	4.5	521	4.7	8	1.5
Other personnel expense	92	0.8	127	1.1	(35)	(27.6)
Total personnel expense	11,639	100.0	11,145	100.0	494	4.4

Personnel expense increased slightly by € 494 thousand versus 30 June 2024. Current staffing levels are considered adequate for corporate needs. To counter the decline in sales orders, in first half 2025, within the Group, Cartiere di Guarcino made use of 14,186 hours of CIGO.

7. AMORTIZATION AND DEPRECIATION

Amortization and depreciation
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Other intangible assets	415	8.5	95	2.2	320	336.8
Buildings	357	7.4	347	7.9	10	2.9
Leasehold improvements	773	15.9	690	15.7	83	12.0
Plant and equipment	2,717	56.0	2,699	61.4	18	0.7
Equipment	329	6.8	352	8.0	(23)	(6.5)
Other	265	5.5	216	4.9	49	22.7
Total amortization and depreciation	4,856	100.0	4,399	100.0	457	10.4

Amortization and depreciation at 30 June 2025 increased by € 457 thousand versus 30 June 2024, due mainly to higher amortization of intangible assets. The go-live of the new ERP system took place on 1 January 2025, triggering the start of amortization. New expenditure was made in line with the planned schedule.

8. ALLOCATIONS

	Allocations
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Provision for supplementary agents' indemnity	35	100.0	36	100.0	(1)	0.0
Total Allocations	35	100.0	36	100.0	(1)	(2.8)

9. FINANCIAL EXPENSE

	Financial expense
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Interest payable on A/C	203	14.1	327	24.4	(124)	(37.9)
Interest M/L Term Loans	575	40.0	703	52.5	(128)	(18.2)
Interest short-term loans	0	0.0	0	0.0	0	0
Interest from factoring	195	13.6	107	8.0	88	82.2
Interest from application of IAS/IFRS	38	2.6	39	2.9	(1)	(2.6)
Other interest expense	14	1.0	5	0.4	9	180.0
Other expense	4	0.3	50	3.7	(46)	(92.0)
Total interest expense	1,029	71.5	1,231	91.9	(202)	(16.4)
Lease interest	0	0.0	0	0.0	0	0.0
Currency losses	410	28.5	108	8.1	302	279.6
Total financial expense	1,439	100.0	1,339	100.0	100	7.5

At 30 June 2025, financial expense rose by € 100 thousand, due mainly to foreign exchange losses impacting the subsidiary Cartiere di Guarcino. This effect was offset by lower interest on utilized credit lines and an overall reduction in interest rates.

10. FINANCIAL INCOME

	Financial income
(Euro thousands)
	30 JUNE 2025	%	30 JUNE 2024	%	Chg.	% chg.
Interest income	10	3.7	42	15.8	(32)	(76.2)
Other income	30	11.2	109	41.0	(79)	(72.5)
Currency gains	229	85.1	115	43.2	114	99.1
Total financial income	269	100.0	266	100.0	3	1.1

11. INCOME TAX

	Income tax
(Euro thousands)
	30 JUNE 2025		30 JUNE 2024	%
Profit (loss) before tax	3,176		1,372
IRES for the year	341	10.7%	365	26.6%
Income from tax consolidation	(153)	(4.8%)	(213)	(15.5%)
IRES net of income from tax consolidation	188	5.9%	152	11.1%
IRAP for the year	308		206
Deferred tax assets	47		(3)
Deferred tax	(134)		(194)
Income tax relating to prior years and benefits	-		6
Income tax	409		167

Income tax for the period was recognized by applying the expected annual effective tax rate, in accordance with international accounting standards, to pre-tax profit for the first half.

The main companies of the Neodecortech Group (specifically Neodecortech S.p.A., Cartiere di Guarcino S.p.A., and Bio Energia Guarcino S.r.l.) participate in the national tax consolidation scheme (Article 117 et seq. TUIR), with Finanziaria Valentini S.p.A. as the consolidating company. Income from tax consolidation was also recognized for the six-month period.

The total tax burden (IRES and IRAP) on pre-tax profit was 5.9%, up from 2.9% at 31 December 2024. This increase reflects higher accrued tax, due mainly to the Group's improved operating margins, which led to a larger tax base.

The change in deferred taxation was due mainly to temporary differences related to asset adjustment provisions, provisions for risks and charges, the inventory obsolescence provision, and directors' fees resolved but not yet paid.

Assets

12. INTANGIBLE ASSETS

	Intangible fixed assets
(Euro thousands)
	Balance at 31.12.2024	Acquisitions Disposals		Amortization Write	back/Write downs	Other changes	Balance at 30.06.2025
Other intangible fixed assets	1,037	132	0	(415)	0	2,390	3,144
Fixed assets under construction and advances	2,280	156	0	0	0	(2,390)	46
Total intangible fixed assets	3,317	288	0	(415)	0	0	3,190

Increases in intangible assets include capitalization deriving from the change in the management system currently in use for group companies currently in progress.

Below is a breakdown of assets under construction by category.

	Intangible fixed assets under construction and advances
(Euro thousands)	Amount at 30.06.2025	Amount at 31.12.2024	Chg.	% chg.
Other intangible assets	46	2,281	(2,233)	(97.9)
Total intangible fixed assets under construction and advances	46	2,281	(2,233)	(97.9)

13. TANGIBLE ASSETS

Tangible assets at 30 June 2025 amounted to € 73,767 thousand versus € 74,480 thousand at 31 December 2024. The breakdown and changes versus the prior year are shown below.

Mention should be made that the table also shows the rights of use arising from existing lease contracts under IFRS 16.

	Tangible fixed assets
(Euro thousands)
	Historical cost 31.12.2024*	Depreciation provision 31.12.2024	NBV at 31.12.2024	Historical cost 30.06.2025	Depreciation provision 30.06.2025	NBV at 30.06.2025
Land	12,487	0	12,487	12,487	0	12,487
Buildings	27,948	(9,616)	18,332	28,016	(9,973)	18,043
Leasehold improvements	11,577	(9,949)	1,628	11,577	(10,721)	856
Plant and equipment	129,999	(94,303)	35,696	132,376	(97,011)	35,365
Equipment	16,409	(14,868)	1,541	16,849	(15,195)	1,654
Other	6,575	(5,175)	1,400	6,668	(5,441)	1,227
Fixed assets under construction and advances	3,396	0	3,396	4,135	0	4,135
Total tangible fixed assets	208,391	(133,911)	74,480	212,108	(138,341)	73,767

Below is a breakdown of assets under construction by category.

	Tangible fixed assets under construction and advances
(Euro thousands)	Amount at 30.06.2025	Amount at 31.12.2024	Chg.	% chg.
Buildings	376	376	0	0.0
Plant and equipment	3,759	3,020	739	24.5
Equipment	0	0	0	0.0
Other	0	0	0	0.0
Total tangible fixed assets under construction and advances	4,135	3,396	739	21.8

Changes in assets and the related provision are shown below, including both assets under construction allocated to the pertaining categories and rights of use.

	Tangible fixed assets
(Euro thousands)
	Historical cost 31.12.2024	Write back/Write down (prior years)	Acquisitions	Divestment/ Disposals	Other changes	Historical cost 30.06.2025
Land	2,251	10,236	0	0	0	12,487
Buildings	18,197	9,751	68	0	0	28,016
Leasehold improvements	11,577	0	0	0	0	11,577

Plant and equipment	129,968	31	250	(15)	2,143	132,377
Equipment	16,409	0	440	0	0	16,849
Other	6,574	1	93	0	0	6,668
Fixed assets under construction and advances	3,396	0	2,881	0	(2,143)	4,134
Total historical cost	188,372	20,019	3,732	(15)	0	212,108

(Euro thousands)	Depreciation provision 31.12.2024	Write back/Write down (prior years)	Depreciation	Divestment/ Disposals	Other changes	Depreciation provision 30.06.2025
Land	0	0	0	0	0	0
Buildings	(9,615)	0	(357)	0	0	(9,972)
Leasehold improvements	(9,949)	0	(772)	0	0	(10,721)
Plant and equipment	(94,298)	0	(2,717)	9	0	(97,006)
Equipment	(14,873)	0	(329)	0	0	(15,202)
Other	(5,176)	0	(266)	0	2	(5,441)
Total accumulated depreciation	(133,910)	0	(4,441)	9	2	(138,341)

Total acquisitions, amounting to € 3,732 thousand, refer for € 1,207 thousand to the Parent Company and relate to new cylinders, new machinery and the improvement and efficiency of existing ones.

For Cartiere di Guarcino, expenditure in tangible fixed assets totaled € 2,497 thousand and was aimed at improving productivity and optimizing facilities.

All of the Group plants are continuing their 4.0 and 5.0 process management actions to further strengthen the production process, with active control of critical variables and plant upgrading.

Below are details of the allocation of the rights of use within the classes of tangible fixed assets.

	Rights of Use
(Euro thousands)
	Historical	Depreciation	NBV at
	cost	provision	30.06.2025
	30.06.2025	30.06.2025
Buildings	306	(198)	108
Other	810	(449)	361
Total Rights of Use	1,116	(647)	469

The changes are shown below.

	Rights of Use
(Euro thousands)

	Historical cost 31.12.2024	Write back/Write down (prior years)	Acquisitions	Disposals	Other changes	Historical cost 30.06.2025
Buildings	237	0	69	0	0	306
Other	760	0	50	0	0	810
Total Rights of Use	997	0	119	0	0	1,116

(Euro thousands)	Depreciation provision 31.12.2024	Write back/Write down (prior years)	Depreciation	Disposals	Other changes	Depreciation provision 30.06.2025
Buildings	(165)	0	(33)	0	0	(198)
Other	(384)	0	(65)	0	0	(449)
Total provision for depreciation of rights of use	(549)	0	(98)	0	0	(647)

The rights of use at 30 June 2025 refer to buildings used by employees or for guesthouse use and long-term rental cars.

Below are details of the properties and tangible assets on which mortgages are held:

• with regard to Neodecortech:

in favour of Banco BPM S.p.A., a mortgage of € 24,000 thousand on the loan taken out on 26 May 2017; a mortgage on the industrial property complex owned by the Issuer located in Filago (BG), Via Provinciale 2;

• with regard to Cartiere di Guarcino:

in favour of Monte dei Paschi di Siena S.p.A., a mortgage of € 12,000 thousand on a loan taken out on 30 June 2010; a mortgage on the industrial property complex owned by the company located in Guarcino (FR), Via Madonna di Loreto 2.

14. OTHER NON-CURRENT ASSETS

At 30 June 2025, other non-current assets amounted to € 375 thousand versus € 358 thousand at 31 December 2024 and consisted mainly of: (i) offsettable 4.0 tax receivables beyond the next year for € 321 thousand; (ii) security deposits paid by Group companies for a total of € 32 thousand, for various purposes with regard to utilities and lease contracts on buildings where Group companies are headquartered.

15. CURRENT AND NON-CURRENT FINANCIAL RECEIVABLES

Current and non-current financial receivables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Long-term derivatives	36	7.5	67	11.3	(31)	(46.3%)
From the related party ISFRE	445	92.5	445	75.0	-	-
Total non-current financial receivables	481	100	512	86.3	(31)	(6.1)

Short-term derivatives	0	0.0	81	13.7	(81)	0.0
Total current financial receivables	0	0.0	81	13.7	(81)	0.0
Total current and non-current financial receivables	481	100.0	593	100.0	(112.0)	(18.9)

"Non-current financial receivables" at 30 June 2025, amounting to € 445 thousand, includes the receivable claimed by the subsidiary Cartiere di Guarcino from the related party ISFRE in liquidation, which remained unchanged and for which a specific risk provision was already set aside owing to collection difficulties (see the section on provisions for risks and charges in the Explanatory Notes).

16. DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and liabilities
(Euro thousands)
	30 JUNE 2025	Change recognized in Income Statement	Change recognized in Statement of Comprehensive Income	31 DECEMBER 2024	Chg.	% chg.
Directors' fees approved and not paid	162	64	0	98	64	65.3%
Allocations to provisions for write-downs and risks	173	0	0	173	0	0.0%
Allocation to the provision for inventory obsolescence	125	5	0	120	5	4.2%
Taxation on profit in stock	47	11		35	11	31.8%
Tax recovery on adjustment of start-up and expansion costs	0	0	0	0	0	0.0%
Tax recovery on adjustment of plant and machinery depreciation	189	(4)	0	193	(4)	(2.1%)
Deferred tax on derivative contracts	0	0	0	0	0	0.0%
Deferred tax on employee benefits	1	0	1	0	1	0.0%
Prior-year tax losses transferred to the consolidated side	173	0	0	173	0	0.0%
Prior-year tax losses (BEG)	0	(124)	0	124	(124)	(100.0%)
Other	138	1	(2)	139	(1)	(0.7%)
Deferred tax assets	1,008	(47)	(1)	1,055	(48)	(4.5%)
Deferred tax on statutory revaluations	5,193	(19)	0	5,212	(19)	(0.4%)
Deferred tax on assets (BEG)	33	(33)	0	65	(33)	(50.0%)
Valuation exchange gains	0	0	0	0	0	0.0%
Finance lease assets	134	(83)	0	217	(83)	(38.2%)
Deferred tax on employee benefits	24	0	(1)	24	0	0.0%
Other	9	1	(7)	16	(7)	(43.8%)
Deferred tax liabilities	5,393	(134)	(8)	5,534	(142)	(2.6%)

Management has recognized deferred tax assets up to the value which it considers their recovery likely for. In determining the items, results forecasts for subsequent years were taken into account. Deferred tax assets totaled € 1,008 thousand and reflect temporary differences between financial statement and tax amounts. At 30 June 2025, deferred tax amounted to € 5,393 thousand. Deferred tax refers mainly to the temporary differences between the statutory value and the fiscal value emerging from the statutory revaluations made at the time on the properties owned.

17. INVENTORY FOR RAW MATERIALS AND FINISHED PRODUCTS

	Inventory
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Raw and ancillary materials and consumables	25,417	53.2	20,464	51.1	4,953	24.2
Work in progress	804	1.7	172	0.4	632	367.4
Finished products	22,765	47.6	20,562	51.3	2,203	10.7
Advances	0	0.0	0	0.0	-	-
Provision for inventory obsolescence	(1,170)	(2.4)	(1,149)	(3)	(21)	0.0
Total inventory	47,816	100.0	40,049	100.0	7,767	19.4

Inventory for raw materials refers mainly to inks, paper and impregnation material for Neodecortech, pulp and Titanium Dioxide for Cartiere di Guarcino and animal by-products for Bio Energia Guarcino. Inventory levels at 30 June 2025 were sharply higher versus 31 December 2024, due mainly to delayed sales in second half 2025 and purchasing policies of strategic raw materials.

Changes in the provision for inventory obsolescence for first half 2025, which was set aside to alleviate the risk associated with the slow turnover of certain specific products, are shown below.

Provision for inventory obsolescence
(Euro thousands)
	31 DECEMBER 2024 Allocations		Utilization	Release	30 JUNE 2025
Changes in provision for inventory obsolescence	1,149	21	0	0	1,170
Total provision for inventory obsolescence	1,149	129	0	0	1,170

18. TRADE RECEIVABLES

	Trade receivables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Trade receivables	26,572	102.3	36,322	101.7	(9,750)	(26.8)
Provision for doubtful accounts	(609)	(2.3)	(609)	(1.7)	0	0.0

Total trade receivables	25,963	100.0	35,713	100.0	(9,750)	(27.3)

Changes in the provision for doubtful accounts are shown below:

Provision for doubtful accounts
(Euro thousands)
	31 DECEMBER 2024 Allocations		Utilization	Release	30 JUNE 2025
Changes in Provision for Doubtful Accounts	609	0	0	0	609
Total provision for doubtful accounts	609	0	0	0	609

With regard to trade receivables, use was made of the assignment without recourse to a factoring company, made for a number of customers by the Group companies. The balance at 31 December 2024 included receivables for maximization and GMP from the subsidiary BEG that were collected in early 2025.

The provision for doubtful accounts was determined in accordance with IFRS 9.

19. RECEIVABLES FROM TAX CONSOLIDATION

This item, amounting to € 348 thousand, refers to the Group companies' tax consolidation receivable, mainly related to withholding tax applied by GSE on incentives paid to the subsidiary Bio Energia Guarcino S.r.l.. See the Income Tax section of the Income Statement in these Notes.

20. TAX RECEIVABLES

	Tax receivables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
VAT	4,581	82.7	1,450	72.9	3,131	215.9
IRES	0	0.0	0	0.0	0	0.0
IRAP	0	0.0	26	1.3	(26)	(100.0)
Withholdings a/c	0	0.0	0.0	0.0	0	0.0
Other tax receivables	960	17.3	513	25.8	447	87.1
Total tax receivables	5,541	100.0	1,989	100.0	3,552	178.6

The largest amount of the balance refers to the VAT receivable of the subsidiary Bio Energia Guarcino, which is generally in a credit position, and which is requested for reimbursement on a quarterly basis and assigned without recourse to a factoring company.

Other tax receivables refer to tax credits ("Art bonus", 4.0 and 5.0 investment) that may be used for offsetting within the next year.

21. OTHER CURRENT RECEIVABLES

	Other current receivables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Advances to suppliers	4	0.0	41	1.3	-37	-90.2
Accrued income and deferred expense	766	6.2	396	12.9	370	93.4
Other	11,585	93.8	2,644	85.8	8,941	338.2
Total current receivables	12,355	100.0	3,081	100.0	9,274	301.0

Accrued income and deferred expense refers mainly to accruals for insurance premiums and maintenance fees;

"Other" includes Bio Energia Guarcino receivables of € 10,494 thousand for maximization grants and GMP (Guaranteed Minimum Prices) in addition to withholdings from GSE not yet accrued.

The item also includes receivables from INPS and INAIL for Neodecortech (€ 188 thousand).

22. CASH FUNDS

	Cash funds
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Bank and post office deposits	5,474	99.8	12,472	99.9	(6,998)	(56.1)
Cash and valuables on hand	11	0.2	11	0.1	-	-
Total cash funds	5,485	100.0	12,483	100.0	(6,998)	(56.1)

This item consists of cash and bank current account deposits. There are no restraints or restrictions on cash funds. Current accounts and postal deposits are classified as current assets, highly liquid and convertible into cash, with an exchange rate risk that is considered not material.

See the Statement of Cash Flows for an analysis of changes in cash funds.

Liabilities

23. PROVISIONS FOR RISKS AND CHARGES

Provision for risks and charges
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Provision for supplementary agents' indemnity	342	32.0	307	39.8	35	11.5
Embedded derivatives	263	24.6	0	0.0	263	0.0
ISFRE	444	41.5	445	57.6	(1)	(0.2)
Provision for tax risks	20	1.9	20	2.6	0	0.2
Total provisions for risks and charges	1,069	100.0	771	100.0	298	38.6

Changes in the provision for supplementary agents' indemnity and the provision for risks and charges are shown below:

	Provision for risks and charges
(Euro thousands)
	31 DECEMBER 2024	Allocations	Utilization	Release	30 JUNE 2025
Movement of provision for supplementary agents'
indemnity	307	35	0	0	342
Embedded derivatives	0	263	0	0	263
ISFRE	445	0	0	0	445
Provision for tax risks	20	0	0	0	20
Total provision for risks and charges	771	429	(131)	0	1,069

The provision for supplementary agents' indemnity for Italian and EU agents is set aside to cover specific risks from potential interruptions to agency contracts.

Additionally, the provisions for risks and charges include:

• € 444 thousand referring to a provision for risks set aside to write down the financial receivable due from ISFRE in liquidation owned by Cartiere di Guarcino;
• € 20 thousand referring to the subsidiary Bio Energia Guarcino for tax liabilities with the Revenue Agency.

24. POST-EMPLOYMENT BENEFITS

	Post-employment benefits
(Euro thousands)
	31 DECEMBER 2024	Allocations	Utilization	Discounting	30 JUNE 2025
Provision for post-employment benefits	2,193	26	(195)	0	2,024
Actuarial valuation of post-employment benefits (IAS 19)	(102)	0	0	3	(99)
Total post-employment benefits	2,091	26	(195)	3	1,925

The balance refers to the severance indemnity of Neodecortech, Cartiere di Guarcino and Bio Energia di Guarcino. These liabilities qualify as defined benefit plans under IAS 19 and were therefore subject to actuarial calculation by an independent expert.

The defined benefit plans were updated to reflect their market value at 30 June 2025.

With regard to the discounting back of the Employee Severance Indemnity, the relevant actuarial model is based on various demographic and economic assumptions. For some of the assumptions used, where possible, explicit reference has been made to the direct experience of the Company and the Group, for others best practice has been taken into account. The technical and economic bases used are shown below.

Below are the technical economic bases.

	30.06.2025
Annual discount rate	3.21%
Annual inflation rate	2.00%
Annual rate of increase in severance
termination	3.00%
Annual rate of salary increase	1.00%

The table below shows the technical demographic basis.

Death	ISTAT 2022
Disability	INPS tables by age and gender
Retirement	100% upon meeting AGO requirements

Lastly, the annual turnover frequencies and severance indemnity advances.

	30.06.2025
Advances Frequency	3.00%
Turnover Frequency	1.00%

25. CURRENT AND NON-CURRENT FINANCIAL LIABILITIES

Current and non-current financial liabilities
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Unsecured loans	13,363	31.7	16,883	37.0	(3,520)	(20.8)
Mortgage loans	1,445	3.4	2,155	4.7	(710)	(32.9)
Non-current lease payables	947	2.2	0	0.0	947	0.0
Currency derivatives	0	0.0	930	0.0	(930)	0.0
Total non-current financial liabilities	15,755	37.3	19,968	43.7	(4,213)	(21.1)
Payables to banks A/C	17,099	40.5	15,938	34.9	1,161	7.3
Current portion of unsecured loans	7,262	17.2	7,446	16.3	(184)	(2.5)
Current portion of mortgage loans	1,656	3.9	1,880	4.1	(224)	(11.9)
Accrued interest expense	265	0.6	287	0.6	(22)	(7.7)
Current lease payables	156	0.4	138	0.3	18	13.0
Total current financial liabilities	26,438	62.7	25,689	56.3	749	2.9
Total financial liabilities	42,193	100.0	45,657	100.0	(3,464)	(7.6)

Loan installments were repaid regularly during the year. Bank payables refer to the use of short-term lines of the Group in order to support the operations of the Companies.

Current and non-current lease obligations include:

Financial liabilities relating to the rights of use of Neodecortech S.p.A. and Cartiere di Guarcino S.p.A. shown in the table below.

(Euro thousands)	Balance at 01.01.2025	Payments	Other changes	Balance at 30.06.2025
Buildings	72	16	20	108
Other	376	32	(47)	361
TOTAL	448	48	(27)	469

The change in unsecured and mortgage loans was directly attributable to loan repayments and new disbursements; no new loans were taken out during the six-month period.

Below are the details of the Group's loans:

Neodecortech

Original BPM mortgage loan of € 12,000 thousand, residual balance of € 2,858 thousand at 30 June 2025 divided into current and non-current portions;

• BPM S.p.A. € 2,500 thousand, for 72 months (quarterly instalments) and a residual balance at 30 June 2025 of € 540 thousand divided into current and non-current portions - 80% FGPMI guarantee;
• BPM S.p.A. € 2,500 thousand, for 72 months (quarterly instalments) and a residual balance at 30 June 2025 of € 543 thousand divided into current and non-current portions - 90% FGPMI guarantee;
• BANCA POPOLARE DI SONDRIO € 5,000 thousand, for 60 months (monthly instalments) and a residual balance at 30 June 2025 of € 3,515 thousand divided into current and non-current portions;
• SIMEST facility measure "Support for Italian exporting companies sourcing from Ukraine and/or Russia and/or Belarus" of € 1,000 thousand, for 72 months (half-year installments), with a residual balance of € 600 thousand at 30 June 2025 (portion classified as low-interest loan).
• BPER € 2,000 thousand, for 36 months (monthly instalments) and a residual balance at 30 June 2025 of € 1,193 thousand divided into current and non-current portions.

Cartiere di Guarcino

• Original MPS mortgage loan of € 6,000 thousand, with a residual balance of € 205 thousand at 30 June 2025 (current portion);
• Medio Credito Centrale unsecured loan of € 1,128 thousand, residual balance of € 254 thousand at 30 June 2025 divided into current and non-current portions;
• Medio Credito Centrale unsecured loan of € 182 thousand, residual balance of € 37 thousand at 30 June 2025 divided into current and non-current portions;
• Banca POPSO unsecured loan of € 2,000 thousand 12-month grace period FGPMI 90% guarantee residual balance at 30 June 2025 of € 548 thousand divided into current and non-current portions;
• Banco DESIO e Brianza unsecured loan of € 1,000 thousand 12-month grace period MCC 90% guarantee residual balance at 30 June 2025 of € 283 thousand divided into current and non-current portions;
• Medio Credito Centrale unsecured loan of € 146 thousand, residual balance of € 37 thousand at 30 June 2025 divided into current and non-current portions;
• Unsecured loan approved in 2021 by Simest as part of the Capitalization Call to improve and safeguard the financial solidity of exporting companies, amounting to € 360 thousand, with a grace period of 24 months and a residual balance at 30 June 2025 of € 225 thousand;
• Banca MPS Capital Services unsecured loan of € 10,000 thousand 12-month grace period Sace guarantee under the Supportitalia measure, residual balance at 30 June 2025 of € 8,125 thousand divided into current and non-current portions.
• Banca POPSO unsecured loan resolved in 2024 of € 4,500 thousand, residual balance of € 3,608 thousand at 30 June 2025 divided into current and non-current portions.
• SIMEST unsecured loan facility measure "Support for Italian exporting companies sourcing from Ukraine and/or Russia and/or Belarus" of € 1,500 thousand, for 72 months (half-year installments), with a residual balance of € 1,500 thousand at 30 June 2025 (portion classified as low-interest loan).
• Conditional BPER loan signed on 28 April 2025 under the Sustainable Growth Fund Circular Economy includes € 999,999.97 at a subsidized rate and € 400,000.00 at an ordinary rate.

Bio Energia Guarcino

BPER unsecured loan of € 2,000 thousand - 12-month grace period - MCC 90% guarantee - residual balance at 30 June 2025 of € 252 thousand (current portion).

With regard to unsecured and mortgage loans, the table below shows the maturity bands:

	30 JUNE 2025	%	31 DECEMBER 2024	%
(Euro thousands)
Due within 1 year	8,918	36.7	9,326	32.9
Due within 5 years	15,220	62.6	18,663	65.8
Due beyond 5 years	188	0.7	375	1.3
Total	24,326	100.0	28,364	100.0

Neodecortech S.p.A. hedged the interest rate risk on the BPM loan by subscribing an interest rate swap (IRS). The fair value of this instrument, reclassified under "Non-current financial receivables" at 30 June 2025 came to a positive € 36 thousand (positive € 67 thousand at 31 December 2024).

The loan agreements shown above do not contain financial covenants, with the exception of the m/l term loan granted in December 2022 to Cartiere di Guarcino S.p.A. by MPS Capital Services S.p.A. of € 10 million - with Sace guarantee under the SupportItalia measure - which has a covenant on financial debt (debt/EBITDA ≤ 3.5) at 31 December 2024 that has been met.

From 1 January 2025 to 30 June 2025, interest rate movements had no material impact on the fair value of the Group's loans.

26. TRADE PAYABLES

Trade payables at 30 June 2025 amounted to € 37,794 thousand, up from € 29,951 thousand at 31 December 2024, reflecting higher sales and increased inventory levels.

There are no trade payables due beyond 12 months. The Directors believe that the book value of trade payables approximates their fair value.

27. PAYABLE FROM TAX CONSOLIDATION

The payable recorded at 30 June 2025 totaled € 217 thousand and referred to Neodecortech S.p.A. (€ 45 thousand), Cartiere di Guarcino S.p.A. (€ 109 thousand), and Bio Energia Guarcino S.r.l. (€ 63 thousand). See the paragraph "Income tax" in the Notes.

28. TAX PAYABLES

	Tax payables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
VAT	0	0.0	192	15.4	(192)	(100.0)
IRAP	477	52.1	279	22.4	198	71.0
Withholdings a/c	435	47.5	737	59.2	(302)	(41.0)
Other tax payables	4	0.4	36	2.9	(32)	(88.9)
Total tax payables	916	100.0	1,244	100.0	(328)	(26.4)

29. OTHER CURRENT PAYABLES

	Other current payables
(Euro thousands)
	30 JUNE 2025	%	31 DECEMBER 2024	%	Chg.	% chg.
Payables to social security institutions	1,680	17.2	1,656	22.2	24	1.4
Payables to employees	3,279	33.6	2,092	28.0	1,187	56.7
Advances received from customers	951	9.7	680	9.1	271	39.9
Accrued expense and deferred income	3,196	32.7	2,455	32.9	741	30.2
Other	657	6.7	579	7.8	78	13.5
Total other current payables	9,763	100.0	7,462	100.0	2,301	30.8

"Payables to employees" increased by € 1,187 thousand, due to the effect of the allocation of the thirteenth-month salary and bonuses to employees.

The change in accruals and deferrals of € 741 thousand is related mainly to the deferral of the share of plant 5.0 grant made by the Parent Company that will be reversed consistently with the depreciation of the plant itself.

"Other" refers mainly to the fixed and variable fees to directors.

30. EQUITY

Capital increases

There were no share capital increases in first half 2025.

Share Capital

At 30 June 2025, the share capital of Neodecortech S.p.A. amounted to € 18,804,209.37 and is divided into no. 14,218,021 ordinary shares with no par value.

Dividend payout

The shareholders' meeting of 29 April 2025 of the Parent Company Neodecortech S.p.A. approved the Financial Statements at 31 December 2024 and resolved to distribute a unit dividend - also taking into account the dividend related to the company's treasury shares - of 15 Euro cents for each ordinary share entitled to receive it, specifying that any change in the number of treasury shares held by the company at the time of distribution would not affect the unit dividend as determined above, but would instead increase or decrease the amount allocated to the extraordinary reserve.

On 21 May 2025, Neodecortech S.p.A. paid out dividends of € 2,038,353.15 (net of the portion related to treasury shares held at the time of distribution).

Details of other reserves

(Euro thousands)	30 JUNE 2025	31 DECEMBER 2024
Share capital	18,804	18,804
Share premium reserve	18,864	18,864
Treasury shares	(2,088)	(1,688)
Translation reserve	8	(1)
Other reserves and accumulated profit (loss), including profit (loss) for the year:	45,528	44,783
Legal reserve	2,991	2,785
Reserve for fair value adjustments of hedging derivatives	27	51
Revaluation reserves (including investments measured at equity)	26,392	22,489
Reserve for re-measurement of defined benefit plans for employees (IAS 19)	(9)	6
Miscellaneous reserves and accumulated profit (loss), including profit (loss) for the year	16,127	19,452
Total own EQ	81,116	80,762
Share capital and reserves, including non-controlling interests' profit (loss) for the period:	(57)	(37)
Total EQ	81,059	80,725

Treasury shares

At 30 June 2025, the Company held no. 666,874 treasury shares for the equivalent of € 2,102,997.

The Shareholders' Meeting held on 29 April 2025 approved the additional purchase of ordinary shares of the Company, up to a maximum of 10% of the Company's share capital, equal to a maximum of no. 1,421,802 ordinary shares. The purchase of treasury shares may be made, in one or more tranches, within eighteen months.

Earnings per share

Basic earnings per share are calculated by dividing the consolidated profit or loss for the period by the weighted average number of ordinary shares outstanding during the first half. Therefore, treasury shares held by the Group are excluded from the denominator.

Earnings per share	30 JUNE 2025	30 JUNE 2024
Net profit attributable to the shareholders (Euro thousands)	2,800	1,216
Weighted average number of shares outstanding (n./000)	13,638	13,934
Basic earnings per share	0.21	0.09
Diluted earnings per share	30 JUNE 2025	30 JUNE 2025
Net profit attributable to the shareholders (Euro thousands)	2,800	1,216
Weighted average number of shares outstanding (n./000)	13,638	13,934
Weighted average number of shares outstanding adjusted for dilution effect (n./000)	13,638	13,934
Diluted earnings per share (*)	0.21	0.09

* The Company has no potentially dilutive financial instruments and therefore the two indicators match.

31. COMMENTS ON THE MAIN ITEMS OF THE STATEMENT OF CASH FLOWS

The decrease in cash generated in the six months amounted to € 6,998 thousand, resulting in cash funds of € 5,485 thousand at 30 June 2025.

Starting from a profit before tax, interest, dividends, amortization and depreciation, provisions, gains/losses on disposals and other non-cash changes of € 4,444 thousand, the change in cash flow is related mainly to the events below.

The result reflected a sharp reduction in other receivables (€ 9,525 thousand), due mainly to the monetization of maximization and GMP receivables by Bio Energia Guarcino, offset by a € 12,774 thousand increase in other receivables, again linked to receivables accrued but not yet monetized by Bio Energia. There was also a sharp increase in inventory (€ 7,869 thousand). These movements generated a positive cash flow of € 2,770 thousand after changes in net working capital and other adjustments, versus a negative figure of € 9,009 thousand in 2024.

Capital expenditure, net of disposals, made during the year generated cash flow from investing activities of € 3,999 thousand.

Repayments of loans and leases reached € 4,652 thousand. Along with an increased reliance on short-term bank debt, as highlighted in the Directors' Report on Operations. No new loans were taken out during the six-month period.

Monetary changes in equity included the purchase of treasury shares, generating a negative cash flow of € 400 thousand, and the payment of dividends totaling € 2,038 thousand.

32. CONTINGENT LIABILITIES

Under the provisions of IAS 34:15B, the Group's contingent liabilities are shown below: there are no further contingent liabilities, except for those that generated allocations to "provisions for risks", described above.

33. RELATED PARTY TRANSACTIONS

Following the transposition into Italian law of Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 (Shareholders Right Directive II), through Legislative Decree no. 49/2019, and in light of the CONSOB amendments with resolution no. 21624 of 10 December 2020 to the regulation containing provisions on related party

transactions adopted by CONSOB with resolution no. 17221 of 12 March 2010, on 30 March 2023, the Board of Directors of the Company approved the update to the Related Party Transactions Procedure (the "RPT Procedure"), adopted by the Company on 25 June 2020 and amended on 10 December 2020 and on 28 June 2021.

The RPT Procedure, as last updated, is available on the website www.neodecortech.it Investors / Corporate governance / Documenti e assemblee / Procedure section.

Transactions carried out by Neodecortech S.p.A. and other Group companies with related parties, as identified by IAS 24, including transactions with subsidiaries, are neither atypical nor unusual and fall within the ordinary course of business of the Company. These transactions were carried out on market terms. It should be noted that transactions with subsidiaries are not shown as they are derecognized at the consolidation level, while transactions with related parties at 30 June 2024 are shown.

In accordance with the provisions of IAS 24, the following entities are considered Related Parties: (a) companies that directly or indirectly through one or more intermediate companies, control, or are controlled by, or are under common control with, the reporting entity; (b) associates; (c) natural persons who directly or indirectly have voting power in the reporting entity that gives them a dominant influence over the company and their immediate family members; (d) Key management personnel, i.e. those who have the power and responsibility for planning, directing and controlling the activities of the reporting entity, including directors and officers of the company and the immediate family members of such persons; (e) companies in which significant voting power is held, directly or indirectly, by any natural person described under c) or d) or over which such natural person can exercise significant influence. Case e) includes undertakings owned by the directors or major shareholders of the reporting entity and undertakings which have a key management personnel in common with the reporting entity.

With regard to the provisions of point 2) of the third paragraph of Article 2428 of the Italian Civil Code, it should be noted that the Company is controlled, through a 58.60% stake, by Finanziaria Valentini S.p.A.. Accordingly, the Company is part of a group of entities whose parent is "Finanziaria Valentini S.p.A." and whose sister companies are "Industrie Valentini S.p.A." and "Valinvest S.r.l.". Related parties also include "Valfina S.r.l." as it is directly or indirectly controlled by the Valentini Family.

The tables below summarize the existing transactions with these related parties at 30 June 2025:

Total	156	717	69	154
Bonelli Erede	0	0	69	0
Loma Srl	156	0	0	0
ISRFE Srl in liquid.	0	445	0	0
Finanziaria Valentini	0	272	0	154
	30 June 2025	30 June 2025	30 June 2025	30 June 2025
	Trade receivables	Financial receivables	Trade payables	Financial payables
(Euro thousands)

(Euro thousands)
	Revenue and income 30 June 2025	Costs and expense 30 June 2025
Finanziaria Valentini	154	0
Loma Srl	38	(138)

Bonelli Erede	0	(69)
Total	192	(207)

"Financial receivables", amounting to € 717 thousand, refers to a tax consolidation receivable of € 272 thousand regarding the subsidiary Bio Energia Guarcino S.r.l., in addition to € 444 thousand for a receivable regarding the subsidiary Cartiere di Guarcino S.p.A. from the related party ISFRE in liquidation, which remained unchanged and for which a provision for risks of an equal amount was set up owing to collection difficulties.

"Financial payables", amounting to € 154 thousand, relates to the payable for tax consolidation of the Parent Company.

Trade receivables include receivables for € 156 thousand from the business agreement between Neodecortech S.p.A. and Loma S.r.l., for the distribution of products of the parent company. Loma S.r.l. became a related party following appointment of one of the Parent Company's executives as "key management personnel".

Trade payables include € 69 thousand owed to BonelliErede for corporate consulting services.

Revenue and income, costs and expense relate to the agreements with Loma S.r.l. as mentioned above, and income from tax consolidation with Finanziaria Valentini.

The following table shows the fees to the Group's directors and key management personnel for first half 2025:

(Euro thousands)		(Euro thousands)
Subjects	Fees 30 June 2025

Subjects	Fees 30 June 2025	Subjects	Payable for fees 30 June 2025
Luigi Cologni	311	Luigi Cologni	264
Massimo Giorgilli	237	Massimo Giorgilli	207
Luca Peli	34	Luca Peli	34
Gianluca Valentini	46	Gianluca Valentini	7
Adriano Carlo Bianchi	11	Adriano Carlo Bianchi	3
Sara Bertolini	10	Sara Bertolini	0
Ida Altimare	11	Ida Altimare	0
Cinzia Morelli	17	Cinzia Morelli	0
Vittoria Giustiniani	15	Vittoria Giustiniani	8
Monica Girardi	6	Monica Girardi	0
Francesco Megali	7	Francesco Megali	0
Pietro Zanini	11	Pietro Zanini	6
Stefano Santucci	16	Stefano Santucci	8
Federica Menichetti	13	Federica Menichetti	14
Edda Delon	13	Edda Delon	13
Turchi Marco	6	Turchi Marco	6
Pannone Francesco	3	Pannone Francesco	3
Fallacara Francesco	3	Fallacara Francesco	3
Bellucci Giancarlo	3	Bellucci Giancarlo	0
Key management personnel	412	Key management personnel	200
Total	1,185	Total	776

34. SEASONALITY

The Group's industrial sectors of operation are not significantly affected by seasonality.

Other supplementary information

35. GUARANTEES GIVEN

Guarantees given by Neodecortech

The Parent Company issued guarantees in favour of the subsidiaries Cartiere di Guarcino S.p.A. and Bio Energia Guarcino S.r.l., and are up to a maximum of € 26,360,000 for short-term lines of credit for mixed use and export finance, granted to the latter by BPM, BPER, Monte dei Paschi di Siena and Credit Agricole, via "umbrella" credit facilities.

On 19 January 2021, Banco Popolare BPM S.p.A. issued a first-demand bank guarantee, in favour of Sonae Industria de Rivestimentos SA, for € 250 thousand, expiring on 30 April 2026, to guarantee the balance relating to the purchase of the new laminating machine for the production plant in Casoli d'Atri (TE), to be paid within 5 years, based on the business agreements. The guarantee at 30 June 2025 amounted to € 110,875.53.

On 07 November 2022, Neodecortech S.p.A. issued a letter of Patronage to Golden Agri-Resources Europe B.V. in favour of its subsidiary Bio Energia Guarcino S.r.l. to guarantee the supply of palm oil, up to a maximum of USD 16,000,000. At 30 June 2025, this guarantee was settled.

On 07 December 2022, Neodecortech S.p.A. issued a letter of Patronage to Axpo Italia S.p.A. in favour of its subsidiary Cartiere di Guarcino S.p.A. to guarantee the supply of natural gas, up to a maximum of € 2,000,000. At 30 June 2025, this letter of guarantee was settled.

On 28 April 2023, Neodecortech S.p.A. issued a letter of Patronage to Banco di Desio e Brianza S.p.A. in favour of the subsidiary Cartiere di Guarcino to guarantee various lines of credit up to a maximum of € 2,650,000 granted by the bank to Cartiere di Guarcino.

On 16 June 2023, Neodecortech S.p.A. issued a letter of Patronage to ITALPREFABBRICATI S.p.A. - Industria Italiana di Prefabbricati in favour of the subsidiary NDT energy S.r.l., to guarantee the payment of sums due from the contract for the supply of prefabricated structure on site (€ 154,000).

On 28 April 2025, Neodecortech S.p.A. issued a Letter of Patronage to BPER Banca S.p.A. in favour of its subsidiary Cartiere di Guarcino, to guarantee the credit lines related to the investment program under the "Circular Economy" tender, up to a maximum of € 1,399,999.97 granted by the bank to Cartiere di Guarcino.

Guarantees given by Cartiere di Guarcino

On 17/06/2025, Banca Popolare di Sondrio issued a first-demand bank guarantee for € 45 thousand in favour of LAZIO INNOVA S.p.A. to secure potential repayment of grants, aid, premiums, and related advances disbursed under EU directives, laws, decrees, and regulations.

Guarantees given by Bio Energia Guarcino

On 11 October 2018, BPER issued a guarantee in the interest of Bio Energia Guarcino S.r.l. in favour of Gatti up to a principal amount of € 400 thousand, extended until 28 February 2026.

On 17 October 2022, Compagnie Française d'Assurance pour le Commerce Exterieur S.A., issued, in the interest of Bio Energia Guarcino S.r.l., a guarantee of € 3,107 thousand in favour of the Customs and Monopolies Agency -

FROSINONE Office, expiring on 17/10/2025, with the object of: creation of an all-inclusive guarantee under Article 89, paragraph 5 of the Union Customs Code (UCC) to cover customs obligations related to multiple operations (import of palm oil), declarations or customs procedures put in place by Bio Energia Guarcino S.r.l..

36. EVENTS AFTER YEAR END

Reference should be made to the Directors' Report on Operations.

37. INFORMATION ON AGREEMENTS NOT RESULTING FROM THE STATEMENT OF FINANCIAL POSITION

Pursuant to Article 2427, point 22-ter, mention should be made that there are no agreements not shown in the statement of financial position that have significant risks or benefits and that are necessary to assess the Group's financial position, results of operations and cash flows.

38. INFORMATION ON ASSETS AND LOANS FOR A SPECIFIC TRANSACTION

With regard to the requirements of Articles 2447-bis to 2447-decies of the Italian Civil Code, it should be noted that during the period the Group did not allocate any assets or loans to any activity.

39. INFORMATION ON THE FEES TO THE BOARD OF DIRECTORS AND BOARD OF STATUTORY AUDITORS

In accordance with the law, the table below shows the total fees to the Directors and the Board of Statutory Auditors.

Qualification	30 JUNE 2025	30 JUNE 2024
Directors	494,529	341,318
Board of Statutory
Auditors	49,076	50,746

40. INFORMATION ON THE FEES TO THE INDEPENDENT AUDITORS

Details are provided below of the fees paid in first half 2025 by the Neodecortech Group to the independent auditors, BDO Italia S.p.A. and the companies belonging to its network, as required by CONSOB Resolution no. 11971 of 14 May 1999, Article 149-duodecies, paragraph 1:

	30 JUNE 2025	30 JUNE 2024
Auditing services	74,446	47,101
Provision of other activities with issuance of certification	4,725	0
Provision of other non-auditing services	0	0

Filago (BG), 04 August 2025

For the Board of Directors

The Chairman

(Gianluca Valentini)

_____________________________________

-

-

Signed Chief Executive Officer	Signed Financial Reporting Manager

Neodecortech S.p.A.

Review report on interim condensed consolidated financial statements as of June 30, 2025

This report has been translated into English from the original, which was prepared in Italian and represents the only authentic copy, solely for the convenience of international readers.

Report on review of the half-yearly condensed consolidated financial statements

To the shareholders of Neodecortech S.p.A.

Introduction

We have reviewed the accompanying half-yearly condensed consolidated financial statements of Neodecortech S.p.A. and subsidiaries (Neodecortech Group), which comprise the consolidated statement of financial position as of June 30, 2025, and the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flow for the six-month period then ended, and the related explanatory notes.

The Directors are responsible for the preparation of the half-yearly condensed consolidated financial statements in accordance with the International Accounting Standard applicable to the interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union. Our responsibility is to express a conclusion on the half-yearly condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with the criteria recommended by the Italian Regulatory Commission for Companies and the Stock Exchange ("Consob") for the review of the half-yearly financial statements under Resolution n° 10867 of July 31, 1997. A review of half-yearly condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

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

Milan, August 6, 2025

BDO Italia S.p.A.

Signed by

Giovanni Nicora Partner

Bari, Bologna, Brescia, Firenze, Genova, Milano, Napoli, Padova, Roma, Torino, Verona