LET'S MOVE FOR A BETTER WORLD

2023 Consolidated Non-Financial Statement

2023 Consolidated Non-Financial Statement

INDEX CONTENTS

Letter from the Chairperson 3

Letter from the Chairperson
Guide to the Statement
ESG highlights

2023 Consolidated Non-Financial Statement

6.2 Technogym University
Technogym ecosystem: tailor-made training based on artificial intelligence

Personal wellbeing

7.1 Our vision and management model
7.2 The Group's people
7.3 Growth and development
7.4 Remuneration
7.5 Working 4 Wellness
166 7.6 Engagement with workers' representatives
7.7 Workplace health and safety
Working 4 Wellness: wellbeing starts with us Technogym people: the importance of people

Letter from the Chairperson 5

9.1 Energy consumption
9.2 Water consumption
9.3 Waste management
9.4 Environmental impact of products and approach to packaging
Table of areas covered by the Decree – GRI standards
GRI-referenced table ("in accordance with GRI 2021")
Report of the Independent Auditors

Letter from the Chairperson

A long time ago in 1993, when our industry was dominated by the American stereotype of fitness focusing on hedonism and image, Technogym launched a new vision called "Wellness". It was based on a more Italian approach to life, founded on the notion of mens sana in corpore sano (healthy mind, healthy body) advocated by the ancient Romans, calling for regular physical activity, a healthy diet, and a positive mental approach. It was nothing short of a revolution and it made it possible for us to transform fitness into a social business, combining growth and profit with keeping people healthy: from looking good to feeling good, from appealing to a small number of super-fit enthusiasts to the potential to get the entire population involved.

Today, more than ever, awareness of the social and economic benefits of wellness and healthy lifestyles is strong and rooted at all levels, and our vision, which comes from afar, is increasingly topical and contemporary. 'Health is Wealth': health is wealth and wealth is health. Technogym's sustainability policy has strong synergies with its corporate mission: to disseminate the wellness lifestyle globally in order to promote regular physical exercise and healthy lifestyles, thereby improving people's quality of life. Wellness is a balance between body, mind and nutrition: this philosophy of life guides the company's strategic objectives and reflects its commitment to building shared value with all stakeholders.

The close correlation between business strategy and sustainability is what guides the Group in its decisions and actions, which are designed to meet people's health needs. The wellness of the end user and, consequently of the community, is at the heart of the Group's objectives throughout the entire life cycle of its wellness solutions. This combination of factors highlights the uniqueness of our business model and allows for strategic alignment with some of the United Nations Sustainable Development Goals (SDGs). One of the targets of Goal 3 'Good Health and Wellbeing' refers to the objective of reducing by one third by 2030 premature mortality from non-communicable diseases through prevention and treatment and promoting mental health and wellbeing": it is clear that Techogym contributes to achieving this objective.

This document summarises the path we have undertaken, a path of facts and goals that guide our business in the sustainable creation of value for all our stakeholders.

Let's Move for a Better World.

Nerio Alessandri

Guide to the Statement

The Consolidated Non-Financial Statement (NFS) was prepared pursuant to Articles 3 and 4 of Legislative Decree 254/2016 and taking as reference the "Sustainability Reporting Standards" defined by the Global Reporting Initiative (GRI). Technogym S.p.A. has drafted this report in accordance with the GRI Standards for the period 1 January to 31 December 2023, in line with the financial reporting.

In drafting the document, the recommendations notified by the European Securities and Markets Authority (ESMA) in October 2023 regarding disclosure pursuant to Article 8 of the Taxonomy Regulation and issues related to climate change were taken into account. ESMA emphasises the importance of ensuring transparency of reporting on issues that have a direct impact on climate change such as energy and emissions, as aspects that will acquire further significance with the entry into force of the Corporate Sustainability Reporting Directive (CSRD). In particular, ESMA stresses the importance of setting targets relating to climate change.

The NFS also includes the information required by Article 8 of Regulation (EU) 2020/852 of 18 June 2020 (the "Taxonomy Regulation") and delegated Regulations (EU) 2021/2178, 2021/2139, 2023/2485 and 2023/2486 connected with it.

The reporting scope includes Technogym S.p.A. and all the fully consolidated companies in the Consolidated Financial Statement. Any limitations of this scope for individual figures have been indicated, with reasons given based on materiality criteria. Specifically, the environmental and health and safety data reported refer to Technogym S.p.A. and Technogym EE S.r.o. as they are the sites that have the most significant impacts for the Group.

It should be noted that one revision was made to the 2021 and 2022 data relating to the calculation of GHG Scope 2 emissions (location-based approach) relating to Technogym EE. To ensure the transparency and complete comparability of the data, it was considered appropriate to perform the calculations over the three-year period using the emission factors published by AIB; consequently, the values for 2021 and 2022, calculated using the TERNA factors, were revised with a resulting reduction in the reported emissions.

Reporting is carried out annually; where possible, comparisons with 2021 and 2022 have been included. The non-financial data in this Non-Financial Statement takes into account the topics and detailed disclosures in the GRI Standards which are needed for a complete, coherent picture of the economic, environmental and social impacts of the Group's activities. The data also complies with the disclosure obligations in Italian Legislative Decree 254/2016. The sections on the individual topics contain information about managing the material topic, as required by the GRI Standards. They also include details of active company procedures and policies, and of the key performance indicators.

At the end of the document is a table summarising the scope of the Decree, the material topics and the related GRI Standards, together with a table containing a breakdown of the indicators.

In terms of the process, company departments were directly involved in the materiality analysis so that they could update or confirm the material issues. A "financial materiality" exercise was carried out for the first time in early 2024; however, for the financial year 2023, only the issues highlighted in the "impact materiality" process and detailed in the chapter "Sustainability at Technogym" are considered material. The data was collected by the central departments of Technogym S.p.A., which consolidated the data received from the various local offices.

This document was submitted for approval by the Board of Directors of Technogym S.p.A. on 25 March 2024. The independent auditing of the Non-Financial Report was entrusted to PricewaterhouseCoopers S.p.A. and concluded with the issue of the Independent Auditors' Report on the Consolidated Non-Financial Statement, pursuant to Article 3 of Legislative Decree 254/2016 and Article 5 of Consob Regulation 20267. The limited audit of the NFS carried out by the auditing firm does not extend to the information, provided pursuant to the Taxonomy Regulation, in the "Taxonomy" paragraph in the "Sustainable Value" section of the NFS. The NFS and the report relating to the limited audit are published on the company's website, in the sustainability section, after approval by the Board of Directors.

Contact: [email protected]

2023 Consolidated Non-Financial Statement

Guide to the Statement 11

ESG HIGHLIGHTS

Sustainability and Corporate Governance System

12 2023 Consolidated Non-Financial Statement

Sustainability and Corporate

Governance System

of the Board of Directors and the Board of Auditors approved in 2022

Diversity & Inclusion policy for all employees approved in 2023

Sustainability Policy

approved in 2021

Sustainability Operating plan updated in 2022

Letter from the Chairperson 13

Customer focus

Training hours

14,992 provided to Headquarters, subsidiaries and distributors

Approx.

14 2023 Consolidated Non-Financial Statement

45,000 training sessions delivered to trainers worldwide

Responsible innovation and design

100% of projects tested during the design phase

14 scientific productions with Technogym products in 2023

seminars or webinars that the scientific area organised or participated in to promote physical exercise and the wellness experience in 2023

Letter from the Chairperson 15

Personal wellbeing

16 2023 Consolidated Non-Financial Statement

[Compared to 95% in 2022]

[Compared to 79% in 2022]

81% Technogym EE permanent contracts

Health and Safety Policy approved in 2023

Letter from the Chairperson 17

The Supply Chain

86% suppliers with registered office in Italy

[In 2022, 74% of suppliers had offices in Italy]

14 ESG audits carried out in 2023

18 2023 Consolidated Non-Financial Statement

Purchases from Italy

Purchases from Europe (excluding Italy)

Purchases from the Rest of the World

Environmental welfare

Energy consumption and emissions

20 2023 Consolidated Non-Financial Statement

2,639 tonnes of CO2 eScope 1 emissions in 2023

[Compared to 2,704 tonnes of CO2 e emitted in 2022]

Technogym does not use chemical substances in the phase-in and phase-out process. It also requires its suppliers to comply with REACH and RoHS regulations. That said, work began internally in 2020, which led to the strengthening of Technogym's commitment, in 2021, to managing waste from chemical substances and preparations (at the reporting date, the policy in question was finalised and adopted by the Group).

Letter from the Chairperson 21

Management of waste, products and packaging

22 2023 Consolidated Non-Financial Statement

Packaging paper and cardboard from recycled and certified sources

Letter from the Chairperson 23

FSC- (Forest Stewardship Council) certified sources and PEFC (Programme for the Endorsement of Forest Certification schemes) and FITOK-certified wood

1 THE TECHNOGYM BRAND

1 The Technogym brand

AN ALL-ITALIAN STORY 1.1

The Technogym brand was created in 1983 when Nerio Alessandri, a young industrial designer and sports enthusiast, designed and built his first piece of fitness equipment in his garage in Cesena, aged just 22. It was a hack squat machine, designed to enable squat exercises to be performed in a guided and safer way. Since then, Technogym has become known for its strong focus on safety and accident prevention, and for its easy-to-use, welldesigned products. The brand name Technogym combines Alessandri's two passions: technology (Techno) and sport (Gym).

In the early 1980s, Europe's fitness industry was still considered a small niche market. Gyms, often equipped with very rudimentary machines, were mainly the preserve of bodybuilders. Nerio Alessandri sensed that there was a growing need for technologically and functionally superior physical exercise equipment that respected consumers' health. He also saw that the fitness industry could potentially appeal to a wider, more diversified public, as society gradually realised the importance of physical exercise in mental and physical health and wellness.

"Wellness" is a lifestyle promoted by Technogym, aimed at improving quality of life through education and regular physical activity, a balanced diet, and a positive mental attitude. During the early 1990s, while the muscle-bound stereotype of fitness personified by Jane Fonda and Sylvester Stallone was all the rage in the USA, in Romagna Nerio Alessandri was launching a new vision: Wellness, an all-Italian lifestyle whose roots lie in the Roman concept of mens sana in corpore sano. It was nothing short of a revolution, which transformed a business based on hedonism into a social one, from looking good to feeling good, from attracting only a small number of super-fit gym enthusiasts to the possibility of embracing the whole population.

Today, 40 years on, Technogym is recognised worldwide as a leader in the supply of technologies, services and design products for the fitness, wellness, sports and health sector, thanks to its complete range of cardio, strength and functional training equipment, services (after sales, training and consultancy, interior design, marketing support and finance) and work-out content, plus a digital cloud platform that allows users to connect with their wellness experience anywhere, using Technogym products or mobile devices.

The offer of Technogym branded products has broadened over the years, covering all market segments belonging to both the BtoB and BtoC channels. Worldwide, Technogym products are used in 85,000 Wellness centres and more than 400,000 homes.

Alessandri household - garage

The Technogym brand

28 2023 Consolidated Non-Financial Statement

Technogym is present in all the major global markets. In 2023, around 90% of company sales occurred outside Italy and roughly 45% outside Europe. The group recorded growth in all the world's geographical areas during 2023, except for APAC, which was affected by the international macroeconomic situation in China in the first half of the year. Notable results were achieved in Europe, driven by significant growth in the UK and Spain and in the EMEA area.

The Technogym brand 29

Milestones in Technogym's history

30 2023 Consolidated Non-Financial Statement

The Technogym brand 31

first Wellness district designed to enhance people's quality of life and well-being.

Milestones in Technogym's history

32 2023 Consolidated Non-Financial Statement Board of directors' report

headquarters, research centre, factory and Wellness Centre, and is open to customers, partners and influencers from

all over the world.

2012

Technogym launches Technogym Ride, the indoor training bike designed together with cycling champions which,

Technogym introduces the new Excite line: the revolutionary range of fully-connected cardio training equipment with the innovative Technogym Live interface, offering users a completely new training experience customised to their passions and targets. 2020 2021 2022 with just one log-in, allows users to connect to the most popular apps among cyclists. Technogym introduces Biostrength, the new Technogym strength training line that adapts to the user thanks to a patented technology based on artificial intelligence and scientific research.

Starting from the "Wellness on the go" strategy, which saw the development of a seamless and integrated digital ecosystem consisting of smart equipment, Mywellness cloud and apps, offering a custom training experience - in 2019, Technogym unveils the Technogym Live platform, offering training experiences and group classes run by trainers from all over the world on Technogym equipment at home, at the gym, in hotels and at work.

2019

Technogym Bike is the first product integrated with the Live platform, to access the best indoor cycling classes of fitness studios around the world live or on demand.

Technogym is Official Supplier to the Olympic Games for the eighth time, at Tokyo 2020. In June, the Technogym App is launched on the market, the application that offers customised workouts with ondemand videos with the best trainers, allowing users to train at home, in the gym, at the office, while travelling and outdoors, thanks to the smart coach.

In October, Technogym and Dior announce their partnership to create exclusive limitededition fitness products available in Dior Vibe pop-up stores.

The Technogym brand Board of directors' report – First section 33

Technogym presents Technogym Run, the first treadmill for cardio and strength training that offers a wide range of on-demand training modes and programmes.

2023

Technogym is named Official Supplier to the Paris 2024 Olympic Games for the ninth time.

Technogym Village hosts the arrival of the ninth stage of the Giro d'Italia.

2023 Consolidated Non-Financial Statement

VISION AND STRATEGY 1.2

Technogym's mission is to help people live better through regular physical exercise, by way of a vision aiming "To be the world's leading Wellness Solutions Provider".

Wellness as a lifestyle can bring important benefits to society by improving people's quality of life, reducing government expenditure on healthcare, boosting corporate productivity, and respecting the environment. The belief in wellness as a social responsibility guides and unites our company.

Based on this concept, Technogym strives to be recognised as a landmark in its industry, promoting an authentic lifestyle by creating customised solutions for private customers and fitness professionals. It is more than just equipment: it is also about services, content, devices and networking solutions.

Strategy

Technogym's goal is to offer people safe, customised training experiences for fitness, sport and health. The company pursues this goal by implementing a strategy based on three core pillars: Wellness on the go, brand development and global presence in the market.

THE BUSINESS MODEL AND TOTAL WELLNESS SOLUTION

1.3

The description gives a snapshot of our business model, considering the services and activities related to the five main areas of the Decree. For more information, see the individual chapters.
Framework of Decree 254/2016, Art. 3 para. (1), Legislative Decree 254/2016. Technogym's business model consists of four main phases ¹ : Product Research and Development; Production; Distribution; and Service. The aim of this model is to create and offer a customised total wellness solution, to meet the wellness and health needs of end users. The health and safety of customers and products is present along the entire value chain. Technogym aims to offer solutions that create functional benefits for end users, without neglecting its attention to design and the use of innovative materials, to guarantee a safe, quality user experience² .

At every stage of the Technogym operating model, it is one of the pillars of our strategy to develop and consolidate our position in the fitness market and in the wellness industry as a whole. Over time, this has contributed significantly to making Technogym a distinctive brand, which is recognised worldwide for its quality, innovation and Italian design. Sports industry partnerships are a cornerstone of the marketing and communications strategy.

36 2023 Consolidated Non-Financial Statement

Framework of Decree 254/2016, Art. 3 para. 1(b); Art. 3 para. 2(e).
Framework of Decree 254/2016, Art. 3 para. 2(c).
Framework of Decree 254/2016, Article 3, paragraph 1 - Environmental issues; Article 3, paragraph 2, subparagraphs a, b, c.

Framework of Decree 254/2016, Art. 3 para. 2(d); and Art. 3 para. 2(f).

For this reason, the Group works closely with its key strategic suppliers, forging long-term relations and periodically assessing their performance on environmental and social issues and compliance with related laws and regulations, with the aim of guaranteeing a stable supply chain³ .

Attention to people's wellbeing is also evident in the provision of safe working environments ⁴ particularly for the production activities carried out in the Cesena and Malý Krtíš (Slovakia) plants . Technogym also manages environmental issues ⁵ during the production phase by way of an Environmental Management System that continually checks and monitors consumption.

In addition to the areas of the Decree affecting specific phases of the production process, personnel management and the fight against corruption are cross-company areas managed all along the value chain⁶ .

TOTAL WELLNESS SOLUTION

Technogym's unique offer is the Total Wellness Solution, a bespoke wellness solution for professionals and end users alike. It includes:

› equipment
› networking apps, devices & content
› services
› media content

Equipment

Technogym boasts a complete range of cutting-edge equipment for cardio, strength, functional and group training. All machines are specially designed to meet the needs of the different market segments. Most of the equipment is connected or connectible to the internet. We are constantly committed to developing new products and technologies to offer safe, effective and engaging training.

Networking Apps, Devices & Content

Thanks to the Mywellness open platform, integrated with equipment, apps and portable devices, fitness professionals and users can stay in touch wherever they are. It offers complete lifestyle management that builds customer loyalty and business opportunities. Operators can make use of a wide range of professional applications to increase their potential, while users can engage with the Technogym Live console, which offers a huge ondemand library of video content, such as live classes, one-to-one cardio or strength training sessions, athletic training routines, core exercises or virtual courses set in the countryside or in the city.

Services

› Interior Design
› Financial Services
› After Sales

Media Content

In 2022, Technogym introduced new content, via Technogym Live - the revolutionary Technogym platform that offers a fully customised training experience with on-demand content, training sessions led by trainers, and training programmes for achieving fitness goals, available on all Technogym equipment fitted with a screen and on the Technogym app, enabling users to access — with a freemium model — the expanding and continuously updated Technogym training library.

After the launch in 2021, the Technogym app, which guides users in obtaining the best results in the shortest period of time with personalised training programmes and libraries of on-demand content, continued to gain popularity around the world. Following its success in Europe, in February 2022, it was launched in the United States. In 2022, to enrich and personalise the user's training experience, new content relating to mindfulness and nutrition, to achieve balance between mind and body, was added to the Technogym app. Since November 2022, users have been able to access their favourite Apple Music playlists in a completely seamless way, directly from the workouts on the app, thanks to its integration with the Apple platform. Moreover, if you have any Technogym home fitness equipment, you can access your Apple Music playlists via the Technogym Live app directly from your iPad.

SUSTAINABLE VALUE 1.4

[201-1]

The economic value generated and distributed displays a company's ability to produce wealth for its stakeholders.

Technogym believes economic growth to be an integral part of its strategy, which is why it is committed to creating long-term value for all its stakeholders. The economic value generated by Technogym in 2023 was €831,487.89 thousand, while the economic value distributed was €700,085.52 thousand, an increase of 11% on 2022.

Topic area	2021 (thousands of Euro)	2022 (thousands of Euro)	2023 (thousands of Euro)
Economic value generated	623,409.74	748,925.48	831,487.89
Economic value distributed	520,177.55	638,421.19	700,085.52
Operating costs - suppliers	364,175.02	463,475.01	503,323.67
Personnel	135,180.75	151,329.93	167,666.10
Lenders	1,519.13	1,879.41	2,619.81
Public Administration	19,125.61	21,613.72	25,715.80
Community	177.04	123.12	760.14
Economic value retained	63,064.59	63,587.15	73,639.53

The table above shows the economic value generated and distributed, and how it has been divided up between the various stakeholders:

› suppliers
› personnel
› investors
› public administration
› lenders
› community

More information on the assets and liabilities, results and cash flows, and tax credits received from the government, can be found in the relevant sections of the Separate Financial Statements.

2023 economic value

The largest share was allocated to the suppliers and operating costs item in 2023 and is equal to 71.89%. The share allocated to personnel, consisting of salaries, wages, social security contributions and benefits, is 23.95%, making it the second largest amount of economic value distributed. The share of value allocated to the Public Administration in the form of taxes and duties represents 3.67% of the economic value produced. Lenders receive 0.37% of the economic value distributed. The portion of economic value distributed to the community, equal to 0.11%, relates to the activities of the Wellness Foundation.

Approach to tax transparency

[DMA 207, 207-1, 207-2, 207-3]

The Group recognises its responsibilities towards investors, governments, suppliers, employees and the communities in which it operates. This is also reflected in its approach to taxes, which seeks a permanent balance between regulatory requirements, business activities and ethical and social aspects.

Technogym's management of tax risk takes into account the Organisation and Management Model, particularly in view of Article 25 quinquiesdecies, which invokes the Group's liability should certain tax offences be committed.

The Group has updated its 231 Model — after having assessed the specific risk — and stepped up its oversight in line with the OECD's Tax Control Framework.

Note also that, while updating the Model, and in relation to the new Special Section on tax offences, in 2020 the existing protocols were reviewed and assessed to ensure that they can deal with offences such as receiving stolen goods, money laundering, self-laundering and bribery (whether of individuals or the public administration)⁷ .

Approved by the Board of Directors in early 2021.

Technogym has for a long time adopted procedures for recording, measuring, managing and controlling risk, compliance with which is ensured at all levels of the business. It is also committed to carrying out monitoring and will activate the necessary corrective measures if any failings or critical issues are discovered. There are channels established by the 231 Model through which stakeholders can report any tax transparency issues. The process of calculating taxes derives from the concept of a true and fair view of the financial statements, in accordance with the relevant accounting standards. The Technogym Group operates in full compliance with the principle of legality. It applies the tax legislation of the countries in which the Group entities are present, accurately, and in full compliance with the dictates and the purpose of the local legislation relating to the subject concerned. Moreover, the Group does not engage in domestic or transnational conduct or operations that entail undue tax advantages, which result in artificial arrangements, which do not reflect the economic reality or are in any way contrary to the purposes or the spirit of the provisions of the tax regime in question and that may generate distortion of the tax level in the respective jurisdictions. It should be noted that the monitoring of regulatory updates on tax matters is also carried out, along with the completion and transmission of tax returns in compliance with the time frames and methods prescribed by law. The administrative and tax management processes include aspects linked to:

› the identification and regular updating of the main and significant areas of tax risk;
› the mapping and updating of the accounting schedule and the preparation of same in accordance with the tax rules applicable to the individual cases in question;
› the regular review of the tax treatment associated with the main and biggest asset and liability transactions recorded by the Administration Department;
› the checking of the methods used to recognise operating events and the related taxation when calculating the taxes to be recognised in the financial statements, and of the preparation of the tax return;
› the methods of managing transactions with the Group's foreign companies and the annual preparation of documents on transfer prices.

In addition to the above, an application for a prior agreement under which to define the methods and criteria for calculating the free competition value of the transactions between Technogym and the Group's other foreign companies was submitted to the Italian Revenue Agency. At the moment, discussions between the parties are still ongoing in order to conclude the signing of the agreement. This will provide upstream certainty regarding the criteria and methods used to determine transfer prices. Technogym then entered into a prior agreement with the Italian Revenue Agency for access to the Patent Box tax relief system for the five-year period 2015-2019; it applied for it to be renewed solely in relation to the intangible assets still eligible for tax relief for the five-year period 2020-2024, thereby securing eligibility for the aforementioned procedure.

With regard to customs issues, Technogym has obtained AEO (Authorized Economic Operator) status under EU law; the system of procedures and controls implemented to manage customs-related issues is subject to regular checks by the customs authority.

With regard to governance, clear roles and responsibilities for the different sections of the organisation have been defined in relation to tax risks. Lastly, the Group's supervisory body checks, by way of regular meetings with managers, that the procedures in place are being applied properly and that transaction documents are being correctly and consistently stored.

INFORMATION PURSUANT TO ARTICLE 8 PURSUANT TO EU REGULATION 2020/852

In the section below, the Technogym Group, as a company subject to EU Regulation 2016/254 relating to the obligation to publish a Non-Financial Declaration, reports the information required by EU Regulation 2020/852.

The Taxonomy Regulation identifies uniform criteria at EU level for defining eco-sustainable economic activities in relation to six environmental objectives:

1. mitigation of climate change (CCM);
1. adaptation to climate change (CCA);
1. sustainable use and protection of waters and marine resources (WTR);
1. transition towards a circular economy (CE);
1. prevention and reduction of pollution (PPC);
1. protection and restoration of biodiversity and eco-systems (BIO).

For FY 2023, reporting is envisaged for the CapEx, OpEx and turnover KPIs, as defined by Delegated Regulation (EU) 2021/2178 as amended by Regulation (EU) 2023/2486, associated with activities defined as eligible and aligned with the climate mitigation and adaptation objectives. In addition, this is the first year for which reporting on eligibility alone is also required for the additional four environmental objectives.

An eligible activity relating to the mitigation and adaptation objectives corresponds to any activity that is specifically included in the list of economic activities in Annexes I and II of Delegated Regulation (EU) 2021/2139 as amended by Delegated Regulation (EU) 2023/2485 regardless of whether that economic activity meets one or all of the technical screening criteria established. The eligible activities relating to the four additional environmental objectives are listed in Annexes I to IV of Delegated Regulation (EU) 2023/2486; these allow the activities associated with the sustainable use and protection of water, transition towards a circular economy and reduction of pollution, and the protection and restoration of biodiversity and ecosystems, to be determined respectively.

Aligned activities correspond to the eco-sustainable activities pursuant to Article 3 of Regulation (EU) 2020/852 which jointly meet the following criteria:

› substantial contribution to one or more of the environmental objectives;
› do no significant harm to any of the other environmental objectives (the "DNSH" principle⁸ );
› compliance with the minimum safeguarding guarantees 9.

In order to comply with the Regulation, the Technogym Group launched a procedure to review its activities carried out in 2023. The process was structured in three main phases:

› identification of eligible activities;
› identification of aligned activities;
› calculation of the turnover, CapEx and OpEx KPIs.

The Technogym Group carried out an analysis of its economic activities, assessing their consistency with the descriptions in Reg. (EU) 2021/2139, Reg. (EU) 2023/2485 and Reg. (EU) 2023/2486 in relation to its business activities and those associated with its corporate operations.

Following this preliminary screening, carried out following a prudential approach, the taxonomy-eligible economic activities were defined. The activities mapped in the table shown below refer to the Technogym Group.

#	ACTIVITIES PURSUANT TO REGULATION (EU) 2021/2139 AND REG. (EU) 2023/2485	TECHNOGYM ACTIVITIES
CCM 7.3	Installation, maintenance and repair of energy efficiency equipment	Installation and replacement of energy-efficient light sources. In 2023, a new LED lighting system was installed for office and production spaces.
CCM 9.1	Research, development and innovation close to the market	Studies have been carried out to analyse the carbon footprint of the main products.

To complete the analysis carried out in compliance with Regulation (EU) 2020/852, verification of the alignment of the eligible activities involves an assessment of the activities in light of the substantial contribution criteria, "DNSH" criteria and the minimum safeguarding guarantees criterion.

With reference to the minimum safeguarding guarantees criterion pursuant to Article 18 of Regulation (EU) 2020/852, the assessment was carried out taking into account compliance with the main international guidelines on human rights (including workers' and consumers' rights), corruption, taxation and fair competition. As stated in the Code of Ethics, Technogym operates with the utmost respect and observance of the value of the individual and of human and workers' rights as enshrined in national and international conventions and declarations, including the United Nations (UN) Universal Declaration of Human Rights and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work, as well as operating in full compliance with applicable laws and regulations.

The procedure involved an analysis of the substantial contribution and "DNSH" (Do No Significant Harm) criteria. As mentioned earlier, the former are for verifying that the activity brings a concrete benefit to the relevant environmental objectives; the latter, on the other hand, aim to establish that none of the other objectives are negatively impacted.

"Do No Significant Harm".

To assess compliance with the minimum safeguarding guarantees, reference can be made to the following guidelines: OECD Guidelines for Multinational Enterprises, UN Guiding Principles on Business and Human Rights, International Labour Organisation's (ILO) declaration on Fundamental Rights and Principles at Work, the eight ILO core conventions, International Bill of Human Rights.

With regard to the objectives impacted by the activities identified, some of the substantial contribution criteria were met. Lastly, the technical screening criteria of Delegated Regulation (EU) 2021/2139, as amended by Reg. (EU) 2023/2485, and Reg (EU) 2023/2486 relating to the eligible activities identified by the Technogym Group stipulate a solid climate risk assessment to examine the significance of transition and physical risks to economic activity. For the purposes of the analysis, Technogym evaluated the classification of the climaterelated hazards, shown in Appendix A of Annexes I and II of Reg. (EU) 2021/2139 and Annex III of Reg. (EU) 2023/2486. The company does not consider these risks to be significant in relation to the scope of the eligible activities; however, to date, a structured and quantitative analysis has not been conducted in this regard.

As a result of this analysis and considerations, which were carried out following a prudential approach, none of the eligible activities are taxonomy-aligned.

Information about the accounting values used in the calculation of the KPIs

The KPIs were calculated in line with the accounting criteria defined in Annex I of Delegated Regulation (EU) 2021/2178 and subsequent amendments provided for in Reg. (EU) 2023/2486. The table below summarises the indicators relating to eligible activities with regard to all six environmental objectives ¹⁰.

Further details can be found in the attached tables stipulated by the Regulation.

2023
#	ELIGIBLE ACTIVITIES PURSUANT TO EU REG. (EU) 2020/852	Revenues	CapEx	OpEx
CCM 7.3	Installation, maintenance and repair of energy efficiency equipment	0.00%	0.61%	0.00%
CCM 9.1	Research, development and innovation close to the market	0.00%	0.09%	0.32%
	TOTAL	0.00%	0.70%	0.32%

The denominator of the KPIs corresponds to the items listed below, while the numerator corresponds to the portion of the denominator that meets the appropriate criteria shown in the Delegated Regulations.

With regard to the turnover indicator, revenues pursuant to article 2, point 5 of EU directive 2013/34 were considered in calculating the denominator. Turnover includes revenues recognised in accordance with International Accounting Standard (IAS) 1, point 82 (a), adopted with regulation (EC) 1126/2008 of the Commission¹¹ .

The definition of the CapEx KPI included increases to tangible and intangible assets during the year before depreciation/amortisation, write-downs and any revaluations, including those arising from revaluations and reductions in value for the year in question, and excluding changes in the fair value12.

To define the denominator of the OpEx KPI, non-capitalised direct costs relating to research and development, maintenance and repairs were included, as well as any other direct expenses relating to the day-to-day maintenance of property, plant and equipment necessary to ensure the continuous and effective functioning of these assets ¹³.

In accordance with point 1.1.1. defined in Delegated Regulation (EU) 2021/2178.
In accordance with point 1.1.2. defined in Delegated Regulation (EU) 2021/2178.
In accordance with point 1.1.3. defined in Delegated Regulation (EU) 2021/2178.

A summary of the cost items included in the numerator of the indicators is shown below for each activity considered.

› 7.3 Installation, maintenance and repair of energy efficiency equipment: costs relating to the maintenance and repair of the buildings were considered.
› 9.1 Research, development and innovation close to the market: costs relating to research and study activities for carbon footprint analysis (non-capitalised direct costs relating to research and development) were considered.

SUSTAINABILITY AT TECHNOGYM 2

2 Sustainability at Technogym

This Non-Financial Statement (NFS) meets the legal requirements set out in Italian Legislative Decree 254/2016. The purpose of this section is to give key information about Technogym's strategic and operational approach, its activities and principal environmental and social performance, and to clarify the Group's commitment to sustainability, based on the United Nations' Sustainable Development Goals.

Technogym's approach to sustainability has strong synergies with its corporate mission. Our aim is to disseminate the Wellness Lifestyle globally with a view to promoting regular physical exercise and healthy lifestyles and improving people's quality of life. Wellness, the corporate philosophy of Technogym, is key to defining our strategic objectives. It reflects our commitment to building shared value with all stakeholders. The close correlation between business strategy and sustainability is what guides the Group in its decisions and actions which are designed to meet people's health requirements and needs. The wellbeing of end users and, therefore, of the community as a whole, is central to our corporate objectives, and it starts at the product design phase. We maintain this focus throughout the production process, through to the after sales and marketing stages. This combination of factors makes our business model unique, and fosters our strategic alignment with the United Nations Sustainable Development Goals (SDGs).

Technogym contributes to achieving Goal 3 "Good Health and Wellbeing", with specific reference to Target 3.4. "By 2030, reduce by one-third premature mortality from noncommunicable diseases through prevention and treatment and promote mental health and wellbeing". On the strength of the Group's contribution to ESG and its desire to align its company strategy with the SDGs, Technogym has outlined clear sustainability objectives and commitments in a dedicated policy.

In 2023, EcoVadis, one of the world's leading agencies for business sustainability ratings, awarded Technogym the silver medal. EcoVadis ratings demonstrate a company's efficiency in integrating sustainability principles into its operating and management system. Assessment is based on 4 categories: Environment, Labour and Human Rights, Ethics and Sustainable Procurement. Technogym obtained the silver medal due, in particular, to the excellent results recognised for the management of environmental issues and issues related to labour and human rights.

2.1

Although not strictly defined in the Sustainability Policy, Technogym monitors and selects its suppliers through periodic due diligence activities. See Chapter 8 for more information.

15.

A point of reference is the European guidelines on sustainable finance, particularly the recommendations issued by the Task Force on Climate-Related Financial Disclosures (TCFD).

ESG PRIORITIES AND COMMITMENTS

Technogym approved its Sustainability Policy in 202114, with commitments through to 2025. The policy includes three main commitments relating to:

› opportunities to create value starting from the Group's core business;
› sustainable innovation to increasingly guide choices towards the responsible management of risks relating to climate change ¹⁵;
› wellbeing of the communityin which it operates and of the stakeholders with which Technogym collaborates and dialogues.

During 2023 Technogym continued with its commitment, in line with the path embarked on in previous years, to improve the Group's level of information and commitment regarding issues related to climate change, diversity and inclusion, and a responsible business approach. The sustainability plan was also updated and defined, which outlines and implements the commitments defined in the Policy.

Furthermore, in 2023, with the aim of strengthening awareness of sustainability issues, work on the drafting of a "vademecum" for the whole company was started. The document, which will be finalised and disseminated during 2024, aims to raise awareness of sustainability issues and provide a clear and immediate snapshot of the actions carried out by Technogym.

In addition, with the aim of further strengthening sustainability management, a formal procedure was drafted during the year to govern the reporting process of the relevant topics in the Non-Financial Statement. This document, which will be adopted over the next year, formalises the information collection process and assigns responsibilities for data management and quality.

Technogym ESG commitments through to 2025

Sustainability Plan

Technogym's sustainability plan was prepared taking into account its sustainability policy and the material topics that arose from a materiality analysis. Moreover, in view of the rapidly changing regulations, account was taken of the existing regulatory requirements and future trends and of any new projects for a sustainable approach that Technogym is in the process of defining.

The aim of the plan is to have a tool that makes it possible to communicate the company's strategic vision of sustainability, promote organisational synergies and foster a culture of sustainability for increasingly joined-up thinking.

For the Wellness Lifestyle For All commitment, three (3) objectives have been identified:

› to promote wellness as a social opportunity by encouraging physical exercise as a way of fighting obesity and inactivity;
› to encourage local and global partnerships aimed at promoting wellness and quality of life;
› to strive to be recognised as the leading wellness solutions provider in the world.

These three important objectives are, in turn, broken down into courses of action, which culminate in a definition of specific actions to be undertaken. Some of the priority targets associated with the Wellness Lifestyle For All include, for example, the sponsorship of a scientific publication to highlight the benefits of regular physical exercise to the general public, the promotion of wellness via Technogym's participation in important national sporting events in geographic areas with high potential, and the redefinition of medical products via software coach initiatives.

The second commitment Responsible Innovation and Design has also been broken down into three associated goals, which define its characteristics. These are:

› to use natural resources along the entire value chain responsibly, applying the best innovations from a research and development perspective;
› to ensure cutting-edge production with excellent design, applying the principles of the circular economy to the design and manufacturing of products;
› to establish product lines with a high aesthetic value but a low environmental impact.

The main actions identified as priorities to achieve the set objectives range from the design of low-energy products and the promotion of sustainable industrial practices on the path towards decarbonisation. Consideration is also given to initiatives related to the fight against climate change, but also to increasing the number of second-life products reintroduced on the market, and to adopting the principles of the circular economy and the greater use of recycled materials in the design phase. Some of these initiatives will be in partnership with third parties.

Lastly, four objectives have been defined for the Wellness for the Community commitment:

› to support the communities in which Technogym is present and make wellness accessible to all;
› to roll out the Wellness Valley worldwide, bearing in mind the particular features of each region, in order to develop a wellbeing community;
› to support fitness professionals in disseminating wellness in their communities;
› to encourage entrepreneurial spirit and expertise along the entire supply chain, fostering local and regional development while complying with, and upholding workers' and human rights.

To pursue the objectives set, two courses of action have been defined and various initiatives assessed as priorities, such as the definition of an advanced welfare plan, distributed to the whole Group, which allows for positive effects on people, the definition of specific concrete objectives to strengthen gender-responsive policies, practices and organisational culture, and an increase in strategic suppliers assessed according to the principles of sustainability and responsible supply practices.

At the end of 2023, the Sustainability Plan was updated with the aim of reviewing the monitoring indicators in line with the targets and assessing progress against individual objectives.

MATERIAL TOPICS 2.2

[GRI 3]

In order to comply with Italian Legislative Decree 254/2016, and in line with the 2021 GRI Sustainability Reporting Standards, businesses need to identify key issues based on the main environmental, social and governance impacts that the activities carried out generate or could generate, and their substantial influence on the assessments and decisions of stakeholders.

Technogym is focused on its stakeholders and holds a variety of engagement initiatives each year, such as: ad hoc meetings with the financial community and business community, aimed at discovering the expectations and needs of investors and business partners; participation in scientific conferences in collaboration with scientific bodies and institutions; sports events; and channels to engage with end users to monitor customer satisfaction. Involving the various stakeholders is an essential process for Technogym so that it can benefit from the contributions that these individuals and entities can make.

Our stakeholders

Materiality analysis is carried out as part of ESG reporting, aimed at identifying the environmental, social, economic and governance aspects that are considered relevant and significant for Technogym's business and its stakeholders.

These topics are defined as "material" as they are associated with the most significant impacts (positive or negative, actual or potential, short-term or long-term) that the company's activities can (or could) generate on the economy, the environment and people, including impacts on the human rights of the same¹⁶.

A structured process was launched to identify the main social, environmental and governance impacts that Technogym's activities generate or could generate, which made it possible to define the organisation's internal and external reference context in detail. This process was carried out in the following phases::

› conducting benchmark analysis on a sample of competitor, peer and comparable companies;
› examining existing internal documents;
› assessing the main international standards and frameworks adopted in sustainability reporting (GRI Standards, SASB, TCFD, etc.).

Once this first phase was completed, the impacts identified were grouped together based on their mutual similarity to obtain a smaller list of 19 ESG topics to be assessed by some of the company's main categories of stakeholders. These topics, in turn, were attributed to six areas of sustainability: responsible supply chain management, corporate governance system, personal wellness solutions and the promotion of the wellness lifestyle, employee wellbeing, global brand leader in wellness, and lifetime customer care.

Next, in order to select the ESG topics and impacts that were really material for Technogym, an appropriate online questionnaire was circulated. Based on their knowledge of Technogym and the context to which it belongs, stakeholders (employees, suppliers, investors) were asked to evaluate, assigning a score from 1 to 5, the proposed impacts in the light of two criteria, as required by GRI Standard 3:

› the likelihood that Technogym will determine or contribute to the identified impacts;
› the scale of positive impacts and the severity for negative ones.

By aggregating the values attributed to both criteria, it was possible to calculate the degree of significance of each topic and sort the topics, from the most relevant to the least significant, based on the score obtained.

In order to identify the ESG topics and impacts that were really material for Technogym, a "materiality threshold" was determined, equal to the average of the final assessments assigned to each topic. The results of the materiality analysis were examined and discussed by Technogym's management: following these comparisons, it was deemed appropriate to consider additional material topics in order to ensure complete coverage of the company's social, environmental, economic and governance aspects.

The table below describes, for each topic identified as material for Technogym, the main impacts generated by the company's activities on the economy, the environment and individuals, including their impacts on human rights.

16.

This approach, defined as "impact materiality" is based on the adoption of an "inside-out" perspective, in that it focuses on the impacts that the company's activities generate on the socioeconomic context in which the organisation operates, and is the exact opposite of the "outside-in" perspective associated with the concept of "financial materiality". The "double materiality" model, introduced by the new Corporate Sustainability Reporting Directive (CSRD), will require this approach to be integrated with the "outside-in" perspective of "financial materiality", which focuses on the nature and extent of the economic and financial impacts (whether positive or negative) that a more or less effective management of ESG issues by the organisation could have on its performance, competitive positioning and enterprise value.

AREA	MATERIAL TOPICS	DESCRIPTION	IMPACTS
Corporate governance system	Ethics and integrity in the conduct of business	Commitment to ensuring good corporate governance based on the highest standards of ethics, integrity and compliance with laws and regulations (e.g. Code of Ethics). The commitment also includes the training of its own people about the ethical principles adopted and the actions undertaken to reduce conflicts of interest.	› Availability of investment/capital for the benefit of each company and the economic ecosystem in which Technogym operates. › Wellbeing and prosperity of the key stakeholders with whom Technogym interacts.
	Governance and risk management	Management of risks relating to market conditions, reputation risks and the protection of the distinctive features of the Technogym brand, environmental risks.	› Protection of the legality and prevention of unlawful conduct. › Compliance (including voluntary compliance) with economic, environmental and social laws and regulations in force. › Wellbeing and prosperity of the key stakeholders with whom Technogym interacts.
	Anti-corruption	Commitment to the fight against active and passive corruption through an adequate assessment of the risks involved and the adoption of appropriate safeguards aimed at mitigating them, including the provision of specific training on the topic and the adoption of mechanisms for reporting potential irregularities or illegal behaviour.	› Protection of the legality and prevention of unlawful conduct.
Global brand-leader in wellness	Protection of trademark and intellectual property	Protection of the brand from plagiarism, while also enhancing the brand through specific actions.	› Sensitivity and awareness of customers and the market to ESG issues. › Market availability of products and services with high environmental and social performance.
	International growth and consolidation	Creation of short-, medium- and long term economic value based on strong economic and financial performance that ensures financial stability and income protection.	› Market availability of products and services with high environmental and social performance. › Wellbeing and prosperity of the key stakeholders with whom Technogym interacts, particularly those who strongly depend on the organisation to carry out their own activities. › Stable employment for the company's staff and opportunities for each employee to fully realise their potential.
Personal wellness solutions for each person and promotion of wellness lifestyle	Capacity to guarantee safe, high performance products	Implementation of policies and actions that guarantee the safety of products offered to customers, while bearing in mind environmental and social aspects in their design.	› Safeguarding of the safety and fundamental rights of customers and of all individuals with whom the organisation interacts. Compliance (including voluntary compliance) with environmental and social laws and regulations in force.
	Design innovation in product development	Creation of increasingly innovative solutions by continuously investing in research and development that lead to an increase in technical capabilities and the use of cutting-edge technologies to offer more and more sustainable and well-designed services to customers.	› Propensity for innovation and investment, with the resulting strengthening of the organisation's competitive positioning. › Ability to identify new market opportunities and capitalising on them, responding to customers' real needs. › Ability to transition in a timely and efficient manner to technologies with low emissions and low environmental impacts.

AREA	MATERIAL TOPICS	DESCRIPTION	IMPACTS
Sustainable product and supply chain management		Responsible supply chain management in terms of selection policies and procedures and/or monitoring according to economic, social and environmental	› Contribution to the achievement of the Sustainable Development Goals (SDGs) of the UN's 2030 Agenda, with positive environmental, social and economic impacts.
		criteria.	› Market availability of products and services with high environmental and social performance.
	Safeguarding standards in the supply chain		› Compliance (including voluntary compliance) with economic, environmental and social laws and regulations in force.
			› Management of environmental and social impacts along the chain.
			› Wellbeing and prosperity of all individuals along the chain.
	Circular economy	Implementation of the principles of the circular economy (reduce, reuse, recycle) in the company business model in order to reduce dependence on virgin raw materials and limit the waste of	› Prosperity of the main stakeholders with whom the organisation interacts in terms of the availability of resources in natural systems and ease of access to them.
		resources.	› Customer health and well-being, in terms of the absence of toxic materials and substances in the products offered by the company.
			› Compliance (including voluntary compliance) with environmental laws and regulations in force.
			› Reduction in the amount of non-recyclable waste generated.
			› Less use of virgin materials and consequent safeguarding of natural resources.
	Data protection and cybersecurity	Maximum responsibility in managing the personal and sensitive data of customers and users.	› Security of the data of customers and users who use the platforms made available by Technogym.
			› Possibility for professional operators, following the customer's consent, to access in complete security the data provided on the platforms made available by Technogym.
			› Ability to prevent and manage IT security incidents.
Lifetime Customer Care	Customer centricity and experience caring	Active listening to customers and investment in innovation using an omni-channel approach to facilitate and improve the customer's shopping experience.	› Market availability of products and services with high environmental and social performance.
			› Effective contribution to satisfying customers' real requirements and needs.
			› Contribution to the achievement of the Sustainable Development Goals (SDGs) of the UN's 2030 Agenda, with positive or negative environmental, social and economic impacts.

AREA	MATERIAL TOPICS	DESCRIPTION	IMPACTS
Employee wellbeing	Diversity and equal opportunities	Respecting and valuing diversity by enhancing the heritage of multiculturalism, experiences and characteristics of people by developing policies of inclusion, non-discrimination and managing diversity for minorities (e.g. disability, gender, age, ethnicity, sex, religion); the issue includes equal pay for equal roles.	› Safeguarding of the fundamental rights of members of staff and of all individuals with whom the organisation interacts. › Stable employment and wellbeing for the company's staff. › Opportunities for each employee to fully realise their potential.
	Employee training and career development	Promotion of professional development programmes and personal training courses for the organisation's employees, aimed at enhancing skills and consolidating professionalism via employee appraisals.	› Opportunities for each employee to fully realise their potential.
	Merit-based pay and bonus systems	Enhancement of individual potential, including via the development of merit based pay and bonus systems.	› Opportunities for each employee to fully realise their potential. › Protection of the psychological and physical wellness of employees.
	Respect for human rights and the protection of workers	Development of fair working conditions and policies to ensure equal opportunities, by eliminating all forms of discrimination and creating conditions that encourage diversity and promote dignity at work.	› The wellbeing and prosperity of the key stakeholders with whom the organisation interacts. › Compliance (including voluntary compliance) with laws and regulations in force regarding human rights. › Safeguarding of the fundamental rights of members of staff and of all individuals with whom the organisation interacts. › Sensitivity and awareness of all stakeholders regarding human rights.

The 2023 materiality analysis confirms all the material topics identified in the previous year with the addition of three more, namely "Circular Economy", "Fight against Corruption" and "Data Protection & Cybersecurity".

Based on these considerations, this document summarises all the topics that were found to be material according to the impact materiality approach. All the minimum areas covered by the Decree (reported in the Table of Areas covered by the Decree – GRI Standards) have, however, been included, while the creation of financial and economic value is dealt with in this document and detailed more fully in the annual financial report.

For the sake of completeness, it should be noted that in the early months of 2024 Technogym also launched a first internal "financial materiality ¹⁷" exercise. The aim of the analysis was to investigate the impacts, risks and opportunities that the environmental and social sphere generates (or could generate) for Technogym. From the next reporting year, the findings from the financial materiality exercise will be taken into account, together with the results of the impact materiality results, to identify the material topics.

The financial materiality exercise had no impact on the identification of the material topics reported in the 2023 NFS.

3CORPORATE GOVERNANCE SYSTEM

3 Corporate Governance System

GOVERNANCE BODIES 3.1

Technogym's Corporate Governance system conforms to the Corporate Governance Code for Listed Companies published by Borsa Italiana S.p.A., and to national and international best practice.

Technogym's governance model, as provided for in its articles of association, is the traditional form of administration and control consisting of the following bodies:

› Meeting of Shareholders;
› the Board of Directors (BoD), from which a Chairperson and Chief Executive Officer, a Vice-Chairperson and an Executive Director are appointed;
› the Board of Statutory Auditors.

The Board is supported by three internal committees: the Risks, Control and Sustainability Committee, the Appointments and Remuneration Committee and the Related Parties Committee. These Committees play an advisory role in their own fields.

The company is managed by a Board of Directors elected by the Shareholders' Meeting, comprising a number of members, established by the Shareholders' Meeting prior to appointment, of between seven and fifteen. The elected directors remain in post for three financial years, or for a period established at the time of appointment by the Shareholders' Meeting, and may be re-elected. All directors must meet the requirements of eligibility, professionalism and integrity stipulated by law and other applicable provisions. At least two directors must also meet the requirements of independence. The Board of Directors assesses the independence of its members each year, pursuant to the provisions of the TUF (Consolidated Finance Law) and the Corporate Governance Code, and on the basis of additional criteria set by the Board. Should any conflict of interest situations arise, such circumstances ¹⁸ are communicated to the interested parties and assessed by the relevant corporate bodies, if within their area of responsibility. In compliance with the legislative and regulatory provisions applicable to listed companies, the Shareholders' Meeting appoints the Board of Directors on the basis of lists submitted by shareholders, in line with the procedure. Moreover, for the period of application of the legislation on gender balance, each list which presents three or more candidates must include candidates of both genders such that at least two-fifths (rounded up) of the candidates belong to the less represented gender.

As anticipated, at the meeting held on 11 May 2016, the BoD set up the Committee for Transactions with Related Parties and approved the Procedure for Transactions with Related Parties (subsequently supplemented and amended, also in implementation of the regulatory changes), with the aim of regulating the execution of transactions with related parties, to ensure their transparency, and substantive and procedural correctness.

18.

The following circumstances are also considered in this context: cross-participation within the Board of Directors; cross-shareholdings with suppliers and other stakeholders; existence of controlling shareholders; related parties, their relationships, transactions and outstanding balances.

The composition of the Board of Directors by gender and age group is detailed in the attached graphics.

The company's Board of Directors ¹⁹ has 11 members, of whom five are women and six men, as follows: Nerio Alessandri, Chairperson and Chef Executive, Pierluigi Alessandri, Vice Chairperson, Erica Alessandri, Francesca Bellettini, Carlo Capelli (Director with specific responsibilities), Maurizio Cereda, Chiara Dorigotti, Melissa Ferretti Peretti, Vincenzo Giannelli, Maria Cecilia La Manna (Lead Independent Director) and Luca Martines. [405-1]

The Chairperson also holds the position of Chief Executive Officer. By virtue of this title and his central role in corporate management and in defining the related strategies and medium- to long-term objectives, the Board of Directors has conferred on him the proxies and powers specified in Section 4.6 of the Corporate Governance Report. The CEO reports periodically, at least every three months, to the Board of Directors and the Board of Statutory Auditors on general management trends, the outlook, and the most significant transactions, and on the exercise of its delegated powers. Conflicts of interest situations are prevented and mitigated thanks also to a governance system where the internal board committees, which each carry out, according to their area of responsibility, a preliminary examination of issues relevant to the management of the company, are made up of directors with the necessary independence requirements stipulated under existing legislation. These are the Appointments and Remuneration Committee and the Related Party Transactions Committee, which both comprise 100% independent directors, and the Control, Risks and Sustainability Committee, in which two-thirds of the directors are independent. Moreover, under its articles of association, some matters of strategic importance for the company are reserved to the exclusive competence of the BoD and the shareholders' meeting.

In compliance with the recommendations of the Corporate Governance Code, the company's Board of Directors approved the diversity policy of the Board of Directors and the Board of Statutory Auditors ("Diversity Policy"20) on 7 March 2022. Its aim is to define criteria and guidelines, albeit non-binding, in order to ensure a diverse and inclusive composition of its corporate and governance bodies, in line with the applicable legal provisions, the articles of association and the values that have always characterised Technogym.

The company has a governance system based on management policies that underpin all the corporate and operating processes. In order to implement its management policies, the company has adopted a set of procedures that guide the main company processes (e.g. finance, control, operations, commercial, R&D). To ensure correct application of the procedures, Technogym has adopted an internal control and risk management system in accordance with the recommendations set out in the Corporate Governance Code and in line with best practices. The result is a coordinated and unitary system of rules, procedures and organisational structures designed to allow, via an appropriate process of identifying, measuring, managing and monitoring the main risks relating to the company and its subsidiaries, sound and proper management of the company, in line with its strategic objectives.

Pursuant to existing legislation for companies with shares listed on regulated markets, and in accordance with the recommendations of the Corporate Governance Code, the Board of Directors plays a central role in the company's governance system. Specifically, sustainability topics are always included in the company's business model in a natural and organic way, being an integral part of the wellness philosophy that constitutes the guiding criterion for the company's and group's actions, strategies and corporate processes. The Board of Directors, assisted by the Control, Risks and Sustainability Committee, supervises the initiatives aimed at pursuing the sustainable success of the company, including those designed to achieve the objectives of the Sustainability Policy, the implementation of which is scrupulously monitored.

The Risks, Control and Sustainability Committee provides advice and proposals regarding sustainability to the Board of Directors. Specifically, the Committee assists the BoD, via analysis, proposals and advice, in carrying out assessments and making decisions relating to sustainability and in overseeing the achievement of the sustainability objectives set.

Should critical situations occur, the Chief Executive Officer, through traditional communication channels, informs the relevant corporate functions set up as controls, the Risks, Control and Sustainability Committee, the Supervisory Body, and the BoD, which will adopt the decisions deemed most appropriate in relation to the nature and severity of the critical situation reported. No critical situations were notified to the highest governance body in 2023.

The Board of Directors defines the practical guidelines for the internal control and risk management system. The Risks, Control and Sustainability Committee continuously monitors the activities designed to manage the main risk components of the company's business, by analysing the risk analysis and mapping processes in order to obtain a broader and more integrated risk management model. Controls and checks are carried out annually.

The BoD has approved a policy to manage dialogue with shareholders and investors. The company has internal control systems (such as Internal Audit, the Supervisory Body and a DPO), which each provide feedback and collect any notifications, according to their area of responsibility. In accordance with existing legislation, a system for anonymous reporting of any violations (whistleblowing) 21 . has also been implemented.

Measures taken to advance the collective knowledge, capabilities and experience of the highest governance body relating to sustainable development include planned meetings of the Risks, Control and Sustainability Committee and the Board of Directors: managers responsible for ESG issues are periodically invited to these meetings to inform the Directors about the development of projects and initiatives in the ESG area and the implementation of the provisions of the Sustainability Policy approved by the Board. The Board of Directors

The Diversity Policy is available on the company's website, corporate. technogym.com, in the Regulations and Procedures section.
In 2023, only one report was received, which was dealt with in accordance with the defined procedure.

regularly, and at least every three years, assesses its work via a self-assessment process in order to objectively analyse its functioning, reflect on its work, and share observations and suggestions for improving its operations. This self-assessment also concerns the involvement and role of the BoD in relation to ESG issues.

For more information about the corporate governance system, please see the Report on Corporate Governance and Ownership, online at (https://corporate.technogym.com/it/governance/assemblea-degli-azionisti)

Code of Ethics

[Art. 3 para. 1(a), Italian Legislative Decree 254/16 – Management Model]

"It is Technogym's intention to conduct business not only by observing the laws, but with fairness regardless of the laws"

The Code of Ethics is the primary reference document for our approach to business ethics. It sets out the principles of the Technogym corporate culture. Its guiding values and rules are intended to guide the company's actions towards its main stakeholders, and towards society as a whole. These values reflect the body of internal regulations aimed at preventing inappropriate conduct that does not comply with the company's directives.

The Code applies to the entire scope of Technogym S.p.A.

Technogym also requires that the company's stakeholders act in accordance with the general principles of the Code. To achieve this, specific clauses are included in the model contracts used in the Group's relations with third parties, who are required to comply with the provisions of the Code in their own activities and organisation.

The Code is a fundamental, integral part of the Organisation, Management and Control Model (the "Model"), adopted by Technogym, as required by Italian Legislative Decree 231/2001.

The issue of the Model required an assessment of our pre-existing organisational model, to identify the activities that could give rise to the offences defined in the Decree, and to establish controls on sensitive activities in order to bring the Model into line with the control principles of Italian Legislative Decree 231/2001 and therefore prevent the committing of offences. The 231 Model contains all the principles and operating procedures intended to prevent the committing of offences and to promote responsible conduct by everyone operating on the Group's behalf, in accordance with the principles of legitimacy, fairness and transparency.

The company's processes are also periodically audited by our Internal Audit function in order to verify the level of risk related to the committing of offences under 231 legislation, and the efficiency of the controls put in place to limit this risk. During the second half of 2023, the characteristics of the management system for confidential reports imposed by Legislative Decree 24 of 10 March 2023 concerning "the protection of persons who report violations of Union law and containing provisions concerning the protection of persons who report violations of national regulatory provisions" ("whistleblowing") were incorporated into the Model. In compliance with the provisions of the Decree – and also due to the new wording of art. 6, paragraph 2-bis, of Legislative Decree 231/2001 – Technogym has adapted and integrated the internal reporting channels previously implemented for the management of any reports of unlawful conduct, as indicated by art. 3 of the Decree, adopting a specific internal procedure and appointing the Reports Management Committee. Also during the

second half of 2023, with reference to predicate offences, the updated Model transposes Legislative Decree 105/2023, which entered into force on 9 October 2023, and which introduced into the list of offences "Interference with the tender process (bid-rigging)" (art. 353 of the Criminal Code), "Interference with the procedure for selecting contractors" (art. 353-bis of the Criminal Code), and "Fraudulent transfer of values" (art. 512-bis of the Criminal Code).

In addition to updating the Model with regard to legal provisions, the project involved a thorough review of the areas and activities potentially exposed to the risk of predicate offences under Italian Legislative Decree 231/01 being committed; the Model was also updated with regard to changes in the company's organisation and the prevention protocols provided for by the Technogym Group's compliance rules. The work also involved simplifying and streamlining the document in relation to the definition of specific protocols aimed at facilitating consulting and audit activities.

The results of this process are presented to the Supervisory Body, which is tasked with monitoring compliance and the effective application of the 231 Model and the Code of Ethics. The Supervisory Body has three members:

› Andrea Ciani (Chairperson and Independent Member);
› Riccardo Pinza (Director of Technogym S.p.A. until May 2021);
› Giuliano Boccanegra (Internal Audit Manager of Technogym S.p.A.).

To support the Supervisory Body in its monitoring, a dedicated email account has been set up ([email protected]) to report actual or suspected violations. Alternatively, reports can be sent by ordinary mail. The Supervisory Body analyses and investigates these reports. The Supervisory Body is also responsible for periodically checking that the Code of Ethics and its contents are applied and respected in order to highlight the need for adaptation, as the law evolves.

In 2023, the Code of Ethics ²² was revised to define the commitments relating to the management of sustainability, and diversity and inclusion, in greater detail. The update of the Code was approved by the Board of Directors on 3 March 2023. The document confirms and reinforces the Group's commitment to pursuing responsible conduct, including with regard to environmental, social and human rights issues.

To raise awareness of the principles and contents of the Code of Ethics and the Model, and the related implementing procedures, the Group has scheduled the launch of training initiatives, which vary in depth depending on the role held, to ensure ongoing alignment on anti-corruption issues and the Code of Ethics. Communication and training on the principles and content of the Model and the Code of Ethics is provided by the departmental managers, who identify the best way to access the training experience, as directed by the Supervisory Body.

In April and May 2023, Internal Audit worked with the HR function to prepare two training sessions for the Constructors Committee; these were held on 19 April and 4 May. The training focused on the current legislation and the sustainability projects initiated by Technogym, as well as an in-depth study of the risks deriving from the legislation on the administrative liability of entities (Legislative Decree 231/01).

In addition, in the last few months of 2023, further training sessions were prepared for Technogym employees concerning the new regulations on whistleblowing, the Code of Ethics and the update of the Organisational Model pursuant to Legislative Decree 231/01. The training sessions will be delivered in 2024.

Available on the website: www.technogym.com. The Code of Ethics and Whistleblowing policy apply to the whole Group.

The fight against corruption

[Art. 3 para. 2(f), Italian Legislative Decree 254/16 – Anti-corruption]

"Always represent Technogym with dignity and transparency" [DMA 205]

Technogym's commitment to promoting integrity and discipline within the company also reflects a real commitment to preventing the risk of active or passive corruption, in other words, actions that could undermine confidence or distort fair competition between market operators.

The Group's commitment to fighting corruption is based on adopting and effectively implementing a Model at national level, and globally, on promoting anti-bribery and anticorruption guidelines. Building a structured, organic system of procedures and controls limits the risk of active or passive corruption offences.

Within the context of the Model, sensitive activities have been identified. These include: negotiations, stipulating and agreeing contracts for the sale of goods and services to private individuals; selecting sales agents and managing relations with agents; the selection, negotiation and stipulation of partner agreements (traders, distributors and developers); the procurement of goods, services or consultancy services; dealing with gifts and donations, sponsorships; managing the bonus system. [Art. 3 para. 1(c), Italian Legislative Decree 254/16 – Risks]

Relationships with the public administration are given specific attention, in the form of a general system of controls, with additional checks on activities identified as sensitive, such as the execution, negotiation and conclusion of contracts for the sale of goods and services with public entities in Italy and abroad, through public tenders and/or private negotiations. The Code of Ethics also deals with the topic of donations, benefits and other utilities, and specifies in a clear, unequivocal way the limits beyond which gifts are not considered acceptable.

The training programme on ethics and fairness includes a specific module on the fight against corruption. This illustrates the legal requirements, and describes Technogym's policies in this area.

There were no verified episodes of corruption in 2023 or 2022. [205-3]

Respect for market rules

"Technogym recognises competition as a key component of development and socio-economic progress at local level" [DMA 206]

CONTROL TOOLS

Code of Ethnics

231 Model

The Group acts in accordance with national anti-trust laws and does not deny, withhold or delay any information that may be required by anti-trust authorities during their inspections. The Group actively collaborates with any preliminary investigation procedures.

The Group takes care to ensure that general conditions on freedom of enterprise are respected. When conducting its business, Technogym allows economic operators to access the market and to compete. At the same time, we protect our customers by promoting improvements in service quality and by maintaining a fair ratio between price and the level of the product or service being offered. To promote compliance with the rules of fair competition, the Code of Ethics expressly clarifies the behaviour expected from people in the Group. All employees are required to comply with fair competition and anti-trust regulations.

If any employees or partners become aware of practices that impede fair market

CONTROL TOOLS

Code of Ethnics
231 Model
Technogym Vision Book
Code of Conduct

competition, they must report the practices to their line managers, who in turn must report any anti-competitive conduct to the relevant supervisory body. Establishing relationships with competitors of Technogym S.p.A. in order to reach agreements on pricing, quantities or other contractual terms, entering into agreements or written or verbal understandings with our competitors, or entering into agreements for the participation in competitive procedures or the sharing-out of markets or supply sources would be considered unfair practices. Finally, Technogym sells its products and services based on their merits and benefits, without unfairly disparaging the products and services of its competitors.

INTEGRATED RISK MANAGEMENT 3.2

The aim of risk management is to preserve the efficiency and profitability of the Group's businesses, along the entire value chain. The governance body responsible for the Group's risk management approach is the Risks, Control and Sustainability Committee, most of whose members meet the independence requirements as indicated in the Code of Self-Governance. This Committee supports the Board of Directors in its assessments and decisions on the system of internal controls and risk management, and with decisions regarding the approval of the periodic financial reports.

In accordance with the Code of Self-Governance, the Committee performs the following functions: it provides opinions on specific aspects of identifying major risks; it examines the periodic reports on the internal controls and risk management assessment, as well as the particularly important reports of the Internal Audit department; and it reports to the Board of Directors at least once every six months on its work, as well as on the adequacy of the internal controls and risk management system.

For more information about the corporate governance system, please see the Corporate Governance Report, which is also available on the website (http://corporate.org)..

Note also that, in order to strengthen the Group's ability to control impacts and risks in all company processes, in 2023 the company continued its activities relating to the definition and implementation of an Enterprise Risk Management (ERM) system. Specifically, in 2023 the company worked to disseminate the risk management and monitoring culture in line with the principles described in the Risk Policy; the aim was to promote and support the adoption of a "risk-based approach" for the conduct of the company's activities, create a common framework to identify and classify corporate risks, define behaviours and actions to mitigate them, provide an adequate monitoring and management system, as well as define the role and responsibilities of the individual parties involved (risk owners). The Technogym Risk Model (TRM) is a model for classifying risks into categories, grouped into three main areas:

› "Strategic Risk", risks deriving from changes in the business context or from inaccurate business decisions, the inadequate implementation of decisions and a poor response to changes in the environment;
› ""Operational Business Support Risk", risks linked to inadequacies or malfunctions in the business support processes;
› "Operational Core Business Risk", risks linked to inadequacies or malfunctions in the core business processes.

Categorising risks in this way makes it easier to identify and analyse key risks, while establishing a common language for risk management across the whole organisation, which can be coordinated with the various corporate management systems we use. By using the TRM, Technogym can provide a dynamic, structured response to the specific corporate activities and processes, which evolve according to the nature and type of the identified risk events, and the evolution of the company's business and/or organisational structure. The ERM project makes it possible to:

› promptly identify and anticipate the main risks that prevent the fulfilment of business, strategic and operational targets;
› promote informed decision-making processes;
› convert threats into opportunities and competitive advantages.

In 2020, the most significant projects concerning enterprise risk management (ERM) included implementing cybersecurity oversight to prevent and manage any IT security incidents.

During 2023, the Group completed the update of the ERM risk register in order to bring the risk assessments in line with the company's operations. The update was carried out via the mapping of processes and related risks in close co-operation with the risk owners. The risk register ensures a structured approach to identifying and managing risks across the whole organisation, including in sustainability-related areas (environmental, social and governance).

With specific reference to environmental, social, personnel management, human rights and anti-corruption issues (Decree 254/16), Technogym has launched a process to integrate ESG (Environmental, Social and Governance) risks within the management systems used to control these areas23. In 2021, Technogym approved the policy on managing chemical substances to ensure constant attention to, and monitoring of issues that affect the environment and health and safety in relation to the use of chemical substances in operations and along the entire value chain.

ESG risks are covered in the sections on relevant topics. Below is a table summarising the sources used in relation to risk management in the various areas. The review of the Integrated Policy, as described in the following section, has strengthened the control of risks relating to health, safety, the environment and energy.

No significant risks were detected, with regard to the Group's production operations.

DECREE AREA	PRINCIPAL POTENTIAL RISKS	CONTROL SYSTEMS AND TOOLS
Environmental aspects	Inadequate management of waste, the temporary storage facility at the production site, and the transfer of waste to third parties for transport/disposal/recycling	Code of Ethics Integrated Policy of Management Systems ISO 9001, ISO 13485, ISO 14001 and ISO 27001. ISO 45001, ISO 50001 ISO 14001 Environmental Management System
	High generation and inadequate containment of greenhouse gas emissions and polluting atmospheric emissions caused by production operations along the supply chain
	Land, subsoil and water contamination caused by production operations along the supply chain	231 Management Model
Social aspects	Accidents, including major accidents, which may occur on the production sites Malfunctioning, construction defects or non-conformities with product technical and contractual specifications Malfunction of equipment due to inadequate installation and/or maintenance Failure to respond to requests/needs/ expectations of customers and the potential market Lack of transparency in customer communications (marketing, labelling) Inadequate management of information systems and information security	Code of Ethics Integrated Policy of Management Systems ISO 9001, ISO 13485, ISO 14001, ISO 27001, ISO 45001 and ISO 50001 ISO 9001 Quality Management System ISO 45001 Occupational Health and Safety Management System ISO 13485 Quality Management System – Medical devices ISO 2700rmation Security Management System GSP Procedure
	Inadequate collection, storage and processing of personal data Failure to respond to changes in customer preferences and failure to appreciate new trends	User manual and service manual Data protection statement for the Technogym website and Mywellness® account Information Security Policy Policy on the use of email, Internet, company digital tools and remote computer controls Lead Generation Policy Global Data Protection Policy Retention and cancellation policy for Mywellness® cloud DE&I Policy
Aspects relevant to personnel	Discrimination against employees Loss of key skills for implementing the strategy	Code of Ethics ISO 45001 Occupational Health and Safety Management System Global Team Development (GTD) Manual

DECREE AREA	PRINCIPAL POTENTIAL RISKS	CONTROL SYSTEMS AND TOOLS
	Inadequate working conditions, for example cases of child labour, insalubriousness of	Code of Ethics
	working environment, possible discrimination against personal health and safety, lack	231 Management Model
Respect for human rights	of freedom of association and collective bargaining	ISO 45001 Occupational Health and Safety Management System
		Contractual clause for the acknowledgement and acceptance of the Code of Ethics and 231 Management Model
		Supplier assessment checklist
	Inadequate negotiation, stipulation and execution of contracts for the sale of goods	Code of Ethics
	and services to private individuals	231 Management Model
Anti-corruption	Inadequate selection, negotiation and stipulation of agreements with partners (e.g.	Technogym Vision Book
	traders and distributors) and suppliers	Integrated Management System and related procedures for the rating, qualification
	Inadequate management of economic and financial transactions	and selection of suppliers, management of procurement and suppliers
	Inadequate management of relations with directors, employees or third parties involved in legal proceedings

With regard to social aspects, product development is controlled by the GSP process, whereas the standards applicable to process management are those for which the company has been certified, starting with the benchmark quality standards, ISO 9001 and ISO 13485. Technogym also works with its scientific partners to guarantee the benefits of machines used to support rehabilitation programmes.

As far as environmental issues are concerned, the main areas of potential risk relate to the Group's production operations, as the plant in Cesena only assembles components produced by suppliers. Both plants are controlled by a certified ISO 14001 Environment Management System.

With regard to human rights aspects, there are no significant risks, given the type of company. Regarding the supply chain, 86% of suppliers are based in Italy, ensuring compliance with current legislation. Moreover, as Technogym has adopted a structured supply chain assessment process, on-site audits and checks 24 .are carried out to ensure continuous monitoring.

See Chapter 8 "The supply chain" for more details.

24.

Systems for the management of company activities

[Art. 3 para. 1(a), Italian Legislative Decree 254/16 – Management Model]

Technogym considers that certified management systems are vitally important in supporting the manufacture of outstanding products and services, which are designed to achieve full, unconditional customer satisfaction that fully respect people and the environment, with a view to continuous improvement. ISO 9001 quality certification was first obtained for the Italian plant in 2000. ISO 14001 environmental certification followed in 2003, with OHSAS 18001 health and safety certification in 2006, transitioning to the new ISO 45001 standard in 2018. Driven by the constant desire to improve efficiency and standardise its processes, the Group launched a project to integrate its management

systems in the second half of 2017. This was completed in 2018, resulting in the Integrated Management System, named the Total Wellness Management System. The project has improved the standardisation of processes and the procedural system that governs these processes, with efficiency gains in terms of economic resources and the commitment of staff who are personally involved in these processes. Specifically, the system includes the following management systems certifications: Quality (ISO 9001:2015), Medical Devices (ISO 13485:2016); the Environment (ISO 14001:2015); Energy (ISO 50001) and Occupational Health and Safety (ISO 45001:2018) relative to aspects of design, production, installation and servicing of wellness and functional rehabilitation equipment for Technogym S.p.A. and Technogym Eastern Europe. In addition, ISO 27001 certification relating to the Information Security Management System was also obtained, with Mywellness as the sphere of application. For more information, see the chapter, "Customer focus"

With the new Integrated Management System, Technogym has reviewed the integrated policy which sets out the guidelines of the Group regarding quality, health and safety, environment and energy. This is a commitment to pursue sustainability by first evaluating all risks, then eliminating them and converting them into opportunities.

Corporate Governance System 71

4WELLNESS FOR THE COMMUNITY

4 Wellness for the community

[Art. 3 para. 1, Italian Legislative Decree 254/16 – Social issues]

THE BENEFITS OF WELLNESS 4.1

In 2006, for the first time in human history the World Health Organisation announced that the number of obese people in the world now exceeds the number of malnourished people. Wellness is a social opportunity for all: for governments to cut their healthcare bills, for companies to benefit from employing more creative, more productive workers, and for ordinary people to improve their lifestyles and health. This was the idea behind the Wellness Foundation, the non-profit organisation created in 2003 by Nerio Alessandri, with the goal of sharing his twenty years' experience in the fitness, wellness and health sector to create a more sustainable society by promoting wellness and a healthy lifestyle. Internationally, thanks to the commitment of Nerio Alessandri and the Wellness Foundation, Wellness® became a topic of debate at the World Economic Forum in Davos, and was also the subject of a United Nations event in New York. In its own region of Romagna, the Wellness Foundation launched the Wellness Valley project, which aims to create the first Wellness district in the world, capitalising on the natural DNA of the Romagna region and on wellness as an economic (tourism, food, technology) and social (health and prevention) opportunity for the area. Technogym contributes to the achievement of Goal 3 "Health and Wellbeing" via its commitment to research and development and to promoting the wellness culture through educational and instructional activities; moreover, the innovation it applies to the technologies it uses helps to improve the quality of life and the wellbeing of the community and the planet, both of which are crucial for achieving Goal 11 "Sustainable cities and communities".

PROMOTING THE WELLNESS CULTURE 4.2

For years, Technogym has supported a number of cultural and educational activities to promote wellness as a social opportunity and encourage regular physical exercise in partnership with many national industry associations (ANIF in Italy, UK Active, NL Actief, Fitness Australia, etc). In total, it has invested around €100,000 to support a host of national initiatives. At supranational level, Technogym has for years been the reference partner of European industry association EuropeActive (which it supports with an investment of around €70,000) and IHRSA, an association of fitness clubs based in the US and operating globally, with an investment of USD 25,000. Moreover, the company makes its own contribution to international economic events, such as the World Economic Forum in Davos. In this context, Chairperson Nerio Alessandri is one of the promoters of the working group dedicated to issues of health and quality of life.

During 2023, Technogym participated in numerous trade fairs and industry events around the world, which once again took place in person after the pandemic. At the same time, the company organised numerous online events and seminars, along with the physical events, so that it could continue its activities of disseminating cultural and scientific information and

maintain contact with its customers and stakeholders. Known worldwide as "The Wellness Company", the Group's business model is teamed with a strong sense of social responsibility focused on the idea of exercise as medicine, and on promoting the Wellness lifestyle as an important social opportunity for governments, businesses and the public.

NATIONAL AND INTERNATIONAL INITIATIVES

Exercise is Medicine Initiative

The historical partnership between Technogym and the American College of Sports Medicine continues. Technogym is a Main Partner of the "Exercise is Medicine" initiative, which aims to promote, at global level, the role of regular physical exercise as a real medicine for a number of disorders. Indeed, there is a wealth of scientific evidence on the therapeutic benefits of exercise in the treatment of many metabolic and chronic diseases, such as diabetes and high blood pressure.

Global Health & Fitness Alliance Partnership

Within the framework of the historic partnership with the IHRSA – the global industry association of fitness clubs based in the United States and active globally – in 2023 Technogym joined the Global Health & Fitness Alliance as a Main Partner in 2023. The aim of the Alliance is to promote the role and impact of the wellness sector on people's health and advocate the introduction of measures that support and encourage a more widespread promotion of regular physical exercise.

Sponsorship of the "EuropeActive" Annual Publication

For some years, Technogym has been a sponsor of the annual publication of EuropeActive, a European professional association, which has a dual objective: on the one hand, to raise awareness among Institutions of the impact of the wellness and fitness sector in terms of better health and wellbeing of people and, on the other, to create a culture and training for industry operators and managers.

In 2023, the first "Exercise for Health Summit" was held in Madrid, organised by EuropeActive and attended by the World Health Organisation – where Technogym and the Wellness Foundation launched the new book "Exercise is Medicine, a quick guide to prescribing exercise".

The publication is targeted in particular at the international medical community; its aim is to promote the prescription of physical exercise by doctors, by providing accurate and scientifically sound guidelines. Fifteen years after the first version, the guide dedicates a chapter to the healthy population and addresses the main non-communicable chronic diseases: hypertension, cardiovascular diseases, type 2 diabetes, overweight and obesity, cancers, osteoporosis, depression; for each illness it reports a summary of the scientific evidence and provides precise recommendations in terms of type of exercise, frequency, intensity and duration.

INITIATIVES IN THE WELLNESS VALLEY REGION

The promotion of wellness as a social and economic opportunity for Romagna, and Cesena in particular, is a priority in Technogym's social responsibility strategy. This priority is put in place through a programme of dedicated activities and initiatives involving Technogym, the main promoter and supporter in the wider context of the Wellness Valley project. In the fields of education and training, Technogym makes its expertise and tangible economic investments available to a whole host of local entities, to disseminate the culture of a wellness lifestyle in various sectors. In 2023, based on its experience gained in the first Welfare District, the "Milano Wellness City 2030" project was launched. During the year, the Wellness Foundation completed a detailed study on the state of wellness in Milan, which captures multiple dimensions: demographic and economic trends, health and lifestyles, territory and infrastructure. From the data collected, Milan appears to have good policies, a strong focus by institutions on wellbeing and quality of life, a concrete commitment to achieving the 2030 sustainable mobility goals and a broad range of opportunities for its citizens. However, the ageing of the population and unhealthy lifestyles, combined with the increase in obesity and overweight – even among the very young – and the consequent increase in chronic diseases, are generating an unsustainable increase in healthcare spending, as well as having a substantial impact on quality of life

Ahead of the Milano-Cortina 2026 Olympics, the Wellness Foundation has therefore launched a forward-looking project to disseminate a new culture oriented towards healthy lifestyles and prevention, involving expert stakeholders, including universities, foundations, hospitals, institutions, sports clubs and businesses.

WELLNESS VALLEY ACTIVITIES IN 2023

Wellness Valley Workshop

The findings of the Wellness Valley Report were presented at the Wellness Valley Workshop, attended by the Minister for Sports and Youth, Andrea Abodi; the President of the Emilia-Romagna Region, Stefano Bonaccini; and the Rector of the University of Bologna, Giovanni Molari. The findings highlighted the impact of the project on health, economic development, tourism and skills. The research showed that:

› in Romagna, 55% of the population is active compared with the Italian average of 46%
› the percentage of inactive adults is 16% compared with 31% for the national average
› 35% of doctors in the Region prescribe physical activity as treatment, compared with the national average of 29%
› the percentage of people over 65 at risk of disability due to chronic diseases in Romagna is 9.6%, compared to the Italian average of 17.1%
› the Wellness sector in Romagna recorded economic growth of 31% in the 2011-2021 period despite the temporary fall caused by the pandemic.

The Wellness Valley Report is prepared by the Observatory for the Study and Analysis of Wellness Valley, an independent body made up of experts and professionals from various bodies.

Wellness Week

From 16 to 24 September, "Wellness Week, the week of movement and healthy lifestyles" was held throughout Romagna, an event promoted by the Wellness Foundation and the Emilia-Romagna Region with the support of the University of Bologna and the Regional Education Authority for Emilia-Romagna. This extensive calendar of over 300 sport and fitness, outdoor movement, healthy eating, psychophysical wellbeing and wellness culture initiatives, offered by more than 80 Wellness Valley stakeholders, allowed visitors to discover Romagna as a region of excellence and expertise in wellbeing and quality of life.

Events on offer included numerous activities organised by the CUSB in the Alma Gyms the new gyms on the campuses of the Universities of Cesena, Forlì and Rimini - held on the International Day of University Sport (20 September); "Cesena in Wellness", a consolidated event at the Cesena Racecourse Club that attracts thousands of people every year, involving the gyms and sports centres in the region; and "Wellness Valley Walks", an event that brings together all the Romagna walking groups with a series of walks in the various cities. Also noteworthy is the commitment of various primary and secondary schools in Romagna, which involved more than 1,700 children and young people in wellness activities during school hours.

"Chi si muove, si ama!" - campaign to promote physical activity

An important new event at the 2023 edition of Wellness Week was the launch of an innovative campaign to promote physical exercise, created by the Wellness Foundation, together with the Emilia-Romagna Region and Ausl Romagna, in collaboration with the professional associations of doctors and pharmacists in the provinces of Forlì-Cesena, Ravenna and Rimini, and Agifar.

The campaign is a fully-fledged part of the Regional Prevention Plan 2021-2025 and is a collective effort (over 700 primary care doctors in Romagna involved) to encourage the most inactive people, in the 40-60 age group, to move more to improve their quality of life and prevent the onset of chronic diseases. The campaign is the result of a unique alliance with GPs, together with local pharmacies, health clinics and walking groups within the Emilia-Romagna Region's "Health Map", as well as an extensive network of gyms, swimming pools and sports centres in the area.

Wellness Congress

The goal for both the medical world and the general public is no longer just to live longer, but to do so in an active and healthy way: exercise is the key to growing old while staying healthy and fit (healthy longevity). This was the central theme of the 25th edition of the Wellness Congress, organised by the Wellness Foundation and held on 6 October at Technogym Village.

Aimed mainly at the world of health, the Wellness Congress 2023 brought together participants from 13 countries and hosted distinguished speakers such as Marco Cardinale, Executive Director of Scientific Research, Aspetar (Qatar), Matthew Kampert, Sports Medicine Specialist and Director of the Exercise Medicine for Endocrinology & Metabolism Institute, Cleveland Clinic (USA), Alberto Mantovani, Scientific Director, Istituto Clinico Humanitas and Emeritus Professor, Humanitas University (Italy), Robert Newton, Professor of Exercise Medicine, Edith Cowan University and Founding Director of Exercise Medicine Research Institute at ECU (Australia).

Wellness Valley Observatory

Working groups at the Observatory for the Study and Analysis of Wellness Valley continued their work. The independent body, set up by the Region in 2018 under the Wellness Valley Protocol signed by the Wellness Foundation with the Emilia-Romagna region and the University of Bologna, aims to measure and report the effects of projects undertaken in the region to promote healthy lifestyles. The Observatory's working group, encompassing multidisciplinary skills — health economics, epidemiology, tourism and event economics, statistics, sociology, sport management and technology development — helped produce the fourth edition of the Wellness Valley Report, published by the Wellness Foundation in January 2023.

The Report has been widely disseminated at Italian and European level, helping to raise awareness among organisations and institutions about the importance of wellness for the creation of healthier and more sustainable communities.

Exercise is Medicine – guide to the prescription of physical exercise

As a result of the partnership with the Wellness Foundation, a new edition of the book "Exercise is Medicine" was published in 2023. The volume, printed in Italian and English, is a valuable guide for all medical practitioners for prescribing physical exercise for the treatment of the most common chronic diseases, such as diabetes, hypertension, cardiovascular diseases, cancer, osteoporosis, depression. Emilia-Romagna is the first region in Italy and one of the first regions in Europe to have introduced, in 2014, the prescribing of physical exercise in medical prescriptions for the prevention and treatment of the main chronic diseases. The publication of "Exercise is Medicine" was received with great interest by representatives of regional health, as well as by professionals from various scientific societies, including FADOI and ANMCO, which collaborate with the Wellness Foundation. The publication was officially launched in November 2023 in Madrid at the first international "Exercise for Health Summit" promoted by EuropeActive.

Research Project at the PRIME Centre in Cesena

The research project launched in collaboration with IRST, the Cancer Research Institute of Medola, continues at the PRIME Centre in Cesena, the first Prevention, Rehabilitation and Integrated Medicine centre in Italy. This first-class facility was inaugurated by the Oncology Institute of Romagna in 2021 and is an expression of the quality of life culture in the region where the Wellness Valley is located. The PRIME Centre offers new treatment pathways for cancer patients based on prescribed physical exercise, which is monitored, as a valuable adjunct to treatment. Its partners include the Wellness Foundation and Technogym, which contributed with the donation of its equipment and digital technologies, enabling patients to follow accurate, customised training programmes. There are currently over 100 cancer patients involved and over 500 services provided thanks to a team of professionals specialising in physical exercise.

Let's Move for a Better World

36 years. No, this is not the age of the writer but the time we spend sitting down during our lives. Working at a desk, driving, exhausting times on the sofa. All this can be summed up in one word: inactivity.

modes of transport and growing urbanisation. Both conditions associated with excess weight involve risk, whether that be high or low, and there are numerous major repercussions on our health.

Owing to the characteristics of the problem and its spread, inactivity has become a "social scourge" and a high cost for society and governments: it not only has a severe negative impact in the form of direct costs for the health system, but also has a high indirect cost in terms of the increase in sick leave, incapacity for work and premature deaths.

It is estimated that for a population of 10 million people, of whom half are insufficiently active, the cost of inactivity is €910 million a year. Globesity is the epidemic of the 21st century - the "public enemy no. 1" that WHO seeks to eradicate. The Organisation's main recommendations are: at least 150 minutes of physical activity a week for adults and 60 minutes a day for children and young people.

Let's Move for a Better World is the result of Technogym's 35-plus years' commitment to the promotion of wellness throughout the world. The campaign is an opportunity to create a more sustainable society based on personal health, and the education of the younger generations is a fundamental starting point for achieving the common goal.

In 2014, in line with its mission, Technogym launched the global campaign Let's Move for a Better World. The aim of the initiative is to raise awareness among communities about inactivity and obesity, while promoting physical exercise as the ideal way of combating them. What's more, it does it in an engaging and fun way!

"Wellness is a social opportunity for all: for governments, to cut their healthcare bills, for companies, to benefit from employing more creative and productive workers, and for ordinary people, to improve their lifestyles and health. It is our wish and our hope that we continue to contribute to the promotion of wellness, as the more people who adopt a wellness lifestyle the better the world will be. This philosophy is the social mission on which we base our daily commitment."

Nerio Alessandri, CEO and Founder of Technogym

In the last 30 years, the global phenomenon of obesity has increased to staggering levels. Some figures may help us understand the extent of the problem. There are more people in the world today who are overweight or obese than those suffering from malnutrition. This is true all over the world except for a few Sub-Saharan areas in Africa and Asia.

Along with the cultural and technological developments that have led us to where we are today, human beings have regressed in terms of physical activity. We are a far cry from our ancestors who ran and moved to live. If all goes well, we exercise at best a couple of times a week and often we don't do it well. The main cause of excess weight and obesity is the imbalance between calories consumed and calories burned. The phenomenon is certainly very complex and, equally, the causes that generate it are intertwined. We can underline two macro-causes at global level: the increasing consumption of calorific foods that are high in fats, and the increase in activity due to sedentary jobs,

TECHNOGYM HAS FOR A LONG TIME PROPOSED PHYSICAL ACTIVITY AS A MEANS OF PREVENTION AND A MEDICINE FOR THE HEALTH OF THE POPULATION. THE RESPONSE TO A SEDENTARY LIFE IS AN ACTIVE LIFE, A LIFE OF WELLNESS. PHYSICAL EXERCISE IS CERTAINLY THE GUIDING FORCE BEHIND THE WELLNESS PHILOSOPHY BUT IT IS MORE THAN THAT.

LET'S MOVE FOR A BETTER WORLD, TECHNOGYM'S SOCIAL CAMPAIGN THAT HAS FOR MANY YEARS INVOLVED FITNESS CLUBS FROM ALL OVER THE WORLD

Technogym

The Wellness Valley: from Romagna to the whole world

WE PROMOTE A CULTURE OF WELLBEING AND A LIFESTYLE CENTRED ON PEOPLE AND THEIR HEALTH AND HAPPINESS

Wellness Valley, the first place in the world dedicated to wellness expertise, is a visionary project founded in Romagna in 2003. The aim of the project was twofold: to invest in people's wellbeing and to create opportunities for economic growth. This is now a strategy that has been adopted worldwide.

Never has health been more at the centre of our minds and at the top of the global agenda. Keeping well and adopting a healthy lifestyle have become priorities for everyone, no matter where they live or how old they are. We now have firsthand experience of the need to keep our minds and bodies healthy so that we can face up to the most difficult challenges.

Technogym has been at the forefront of the health debate for more than 20 years because of its commitment to promoting a healthy lifestyle, based on three pillars: regular physical activity, a healthy diet and a positive mental attitude. Our mission is to help create a more sustainable world and help people live well by combating inactivity, which has long been recognised as the fourthbiggest killer in the world and a contributory factor to the most common chronic diseases. To combat the inactivity epidemic, in 2018, the World Health Organisation published its first "Global Action Plan on Physical Activity". As early as 15 years before this critical declaration, a project was launched in Romagna that seemed little more than a pipe dream but is now recognised the world over: Wellness Valley, an initiative of the Wellness Foundation, a non-profit organisation whose mission is to promote the benefits of a wellness lifestyle. Thanks to this visionary initiative, Romagna has established itself as the world's leading area of expertise for wellbeing and quality of life, making use of local assets to create a system that goes well beyond merely promoting physical exercise.

Today, this initiative involves more than 250 public and private local stakeholders - individuals primarily, but also businesses, institutions, communities, schools, universities and hospitality venues - that organise and promote programmes, projects and events to educate people on how a healthy lifestyle can prevent chronic illness. The results are tangible and constantly growing. Here are some key figures: In Romagna, 55% of the population is active compared with the Italian average of 46%, and the percentage of inactive adults is 16% compared with 31% for the national average. In 2014, Emilia-Romagna became the first region in Italy, and one of the first in Europe, to officially include the prescription of physical exercise in its healthcare system, and since 2015 it has organised the annual Wellness Week, a week of events and initiatives. In 2023, the Wellness Week included an extensive calendar of over 300 sport and fitness, outdoor movement, healthy eating, mental and physical wellbeing, and wellness culture initiatives, offered by more than 80 Wellness Valley stakeholders, enabling visitors to discover Romagna as a region of excellence and expertise in wellbeing and quality of life.

Events on offer included numerous activities organised by the CUSB in the Alma Gyms - the new gyms on the campuses of the Universities of Cesena, Forlì and Rimini - held on the International Day of University Sport (20 September); "Cesena in Wellness", a consolidated event at the Cesena Racecourse Club that attracts thousands of people every year, involving the gyms and sports centres in the region; and "Wellness Valley Walks", an event that brings together all the Romagna walking groups with a series of walks in the various cities. Also noteworthy is the commitment of various primary and secondary schools in Romagna, which involved more than 1,700 children and young people in wellness activities during school hours.

The culture of wellness has now become central not only to the wellbeing of individuals but also for the area. This awareness has given rise to innovative urban redevelopment and regeneration projects in Romagna's towns, with the aim of creating new spaces and infrastructure dedicated to sport and quality of life. A stand-out example is the Parco del Mare (Sea Park) in Rimini. This environmental and services infrastructure dedicated to wellbeing and outdoor physical exercise has completely revitalised the town's seafront, allowing both tourists and locals to work out with innovative Technogym equipment in the largest open-air gym in the Mediterranean region.

2023 Consolidated Non-Financial Statement

PEOPLE FIRST AND FOREMOST, BUT ALSO BUSINESSES, INSTITUTIONS, TOURISM AND COMMUNITIES AS A WHOLE ENJOY THE BENEFITS OF THE PROJECT, WHICH SINCE 2003 HAS MADE ROMAGNA THE WORLD'S LEADING AREA FOR EXPERTISE IN WELLBEING AND QUALITY OF LIFE

Nerio Alessandri, Founder of Wellness Valley and Chairperson of the Wellness Foundation

OUR MISSION IS TO HELP CREATE A MORE SUSTAINABLE WORLD BY COMBATING INACTIVITY

By leveraging its natural assets, Romagna has been able to create and attract many successful wellness events that have helped to enrich the local tourism sector. Today Wellness Valley offers an extensive calendar of sporting events from March to November, bringing new prosperity to the tourism industry and helping to consolidate the culture of sport among the population. In 2022, the ten main sporting events attracted over 500,000 attendances, generating an economic impact of over €63 million.

In this sense, the Wellness Valley is also a cultural district, an evolution of the concept of an industrial district first coined by the economist Alfred Marshall at the end of the 1800s as a benefit generated by concentrating small and medium-sized businesses in a small space.

A shift in focus has resulted in a shift from the industrial district to the cultural district, based on investment in research, knowledge-sharing, a longterm vision and sustainable actions. The promotion of a culture of wellbeing and a lifestyle centred on people and their health and happiness are at the core of this genuine wellness ecosystem. The success of Wellness Valley has made it a global case study: at the 2016 World Economic Forum in Davos, Wellness Valley was used in a study as an international benchmark for creating sustainable health systems. In 2017, the Wellness Foundation actively contributed to the implementation of the World Health Organization's Global Action Plan on Physical Activity 2018-2030, presenting the

best practices of Wellness Valley at civil society hearings in Geneva and New York. As part of the Health and Wellness Week at Expo Dubai 2020, Wellness Valley was presented as an example of a regional ecosystem that focuses on the health and quality of life of people at the initiative, "La medicina personalizzata: nuovi strumenti e politiche per la prevenzione, la diagnostica e la terapia". ("Personalised medicine: new tools and policies for prevention, diagnosis and therapy").

It is apparent that Wellness Valley, as a social innovation project centred on people and their quality of life, is also a template for some of the United Nations' Sustainable Development Goals for 2030, particularly those relating to health and wellbeing, and the creation of sustainable cities and communities and partnerships to help achieve these goals. We can talk about sustainability because the benefits of the wellness lifestyle extend to the economy and to society as a whole, shifting the focus of healthcare systems from cure to prevention and helping to promote sustainable transport and thus the health of the environment as well as the people who live in it.

5CUSTOMER FOCUS

5 Customer focus

THE WELLNESS EXPERIENCE 5.1

In line with its inspirational philosophy of wellness and its business offer of customised solutions, Technogym created the Technogym Village: the world's first wellness campus, conceived and designed to offer colleagues, customers, partners, institutions and the media a genuine wellness experience.

In addition to the production facility, the area dedicated to the Research and Innovation Centre and office space, there is the T-Wellness Centre, a large venue open to industry players from all over the world. It is a place for testing the latest products, participating in training activities and trying out the Total Wellness Solution. The T-Wellness Centre also includes a store open to the public, to purchase products for the home.

For Technogym, the wellness experience means satisfying a broad ecosystem of stakeholders through continually evolving dialogue, instruments and channels. The aim is to offer ever greater customisation and an overall improvement in the wellness experience for users, as well as new opportunities for fitness professionals to expand and retain their own customer base.

Digital innovation

Digital innovation is a fundamental part of Technogym's activities. Back in 1996, Technogym launched Wellness System, the first training management software, followed in 2002 by the launch of Wellness TV, the first on-board personal entertainment system; in 2007 by the first web-connected equipment; and in 2012 by Mywellness Cloud, the industry's first cloud platform. Today, Technogym's offer is defined by the Technogym Ecosystem, a unique ecosystem in the wellness sector that includes the most complete range of connected smart equipment, apps, services and digital training content for fitness, sport and health. The Technogym Ecosystem enables end users to access their customised training programme any time, anywhere (in the gym, at home, in hotels, at work, at the doctor's or outdoors) and sector operators to implement innovative business strategies to improve customer attraction and retention. The Technogym Ecosystem is an open platform that is fully compatible with the software applications already in use in the club (management, marketing programmes, body analysis stations), as well as with fitness equipment (from any manufacturer) and the main payment methods (Apple Pay, Google Pay, Stripe, Visa, Mastercard and others), apps and wearable devices used by the end user. Technogym Coach, the AI-based digital trainer, thus tracks the development and customisation of training for each individual and makes it possible to accurately group fitness club users on the basis of exercise preferences, habits and patterns (type of workout, favourite days of the week, average duration of sessions, etc.). By taking advantage of this data, operators can increase their retention and upselling rate by formulating effective and targeted communications and promotions, as well as stimulating healthy competition through challenges. Thanks to the Technogym Live platform, launched in 2020, the Technogym Ecosystem offers users a full range of on-demand video training

content (training sessions guided by a trainer, routines dedicated to specific objectives or outdoor immersive programmes) available on the equipment consoles or on the Technogym app. Today, more than 55 million people around the world partner with Technogym and about 25 million are registered with the Technogym Ecosystem. As part of the Technogym Ecosystem, in 2023 Technogym unveiled Biostrength, the new AI-based strength training line. By simply logging in to the, Technogym app, Biostrength automatically delivers a "precision training" experience that is completely customised to the needs, objectives and aspirations of each individual user, and which, thanks to artificial intelligence, evolves over time.

SUSTAINABLE CUSTOMER CARE 5.2

Effective, safe use of the machines does not just depend on their quality and condition when they leave the Technogym plant. The machines need to remain perfectly efficient over time, which is why Technogym provides long-term customer care, offering a complete range of services.

Customer services

The Total Wellness Solution offers services and programmes to give fitness professionals a wide range of tools to support their business, which ensure the satisfaction, loyalty and safety of end users over the long term. Specifically, the Group offers:

Our ecosystem of services incorporates a multitude of commercial and financial tools that allow Technogym to support businesses with customised solutions, helping them to grow and sustain their business. With such an extensive range of products and services, Technogym can offer its customers a combination of hardware, software and services as a one-stop shop.

Information and training on the correct use of machines

[Art. 3 para. 1, Italian Legislative Decree 254/16 – Social issues; Art. 3 para. 2(c), Italian Legislative Decree 254/16 – Health and safety]

Technogym deals with the communications related to the sale and use of its machines, to ensure they are used efficiently and safely.

As part of the product development process, which involves every department of the company according to its area of expertise, the Scientific Research and Innovation Department writes the instruction books and manuals delivered with the machines, and collaborates with the Marketing department to produce the messages used in the advertising campaigns and content, to ensure that the information is accurate, rigorous and scientifically correct.

Technogym is directly involved in training, to ensure that the machines are used properly and give users the benefits for which they were designed.

Training is offered to:

› Headquarters, Subsidiaries and Distributors: in 2023, a total of 14,992 product training hours were delivered at subsidiaries and headquarters; 92% of this was delivered at subsidiaries and the rest at headquarters. With regard to live classes, a total of 1,163 hours were delivered at subsidiaries. Product training was also delivered to distributors, comprising a total of 11,894 hours of online training and 53 hours of training via live classes. All content is also available in an online repository, accessible remotely by the whole of the sales network.
› Trainers are guided on how to best use the machines in order to create the best possible experience for end users in terms of efficiency and safety. Around 45,000 training sessions were delivered worldwide in 2023, most of which were managed remotely via e-learning (65%). A 28% increase in enrolments on courses was recorded in 2023 compared with 2022 and confirmed the positive trend in the number of certified new trainers in the database (+37%).

End user health and safety [DMA 416]

The After Sales service, which is managed by the Subsidiaries, Operations & Services Division, is based on modular service contracts aimed at ensuring the safe, efficient functioning of all machines throughout the life of the contract.

The service contract is of vital importance, as it ensures product quality, safety and reliability throughout the product's life cycle. The Group provides maintenance through its authorised service providers, who are contracted and managed by the local Technogym subsidiaries, some of whom have in-house technicians.

In 2023, there were 242 service providers, 65% of whom were single-client (up from 62% in 2022), 34% were businesses with a workforce of up to 10 employees, and the remaining 1% were businesses with more than 10 employees.

TOOLS

CONTROL

GSP Procedure

Service providers by company size

At global level, distribution for 2023 did not change dramatically, with 43% in the Americas, 42% in the EMEA region and 15% in Asia.

Service providers by geographical area

subsidiaries; for machines sold through distributors, the network of support services is The service contact can be activated on all machines sold through the Group's organised by the distributors themselves. Technogym provides training opportunities for service providers, giving them the operational tools and fundamental concepts they need to ensure the conformity and safety of products at all times. As proof of the Group's commitment, nearly 16,021 training hours were delivered in 2023. This number was made possible following the implementation of streaming delivery for the main product lines. ISO 21001:2018 certification for the training process was obtained in 2020, which is testament to the company's training infrastructure.

Total number of training hours delivered, per service provider, per geographical area

MANAGEMENT OF DATA 5.3

The new privacy governance structure approved by Technogym's Board of Directors on 7 March 2022 has been fully operational from this year. It is shown more clearly in the image below.

The following roles were included in the new structure:

a. The Privacy Committee with tasks of managing and coordinating privacy activities and performance.
b. Privacy Managers, i.e. those whose tasks, within their respective functional areas, are to ensure compliance with regulations and check that the rules identified by the company are correctly followed.
c. Internal Privacy Representatives, on the other hand, are the first point of contact for all privacy requirements and are identified within specific areas.

The organisational structure described above has therefore been strengthened to best assist the company, particularly in light of the processes relating to two important and sensitive areas of processing, namely: (a) Mywellness Platform and (b) Customer Data Platform.

a. Mywellness Platform

Mywellness Platform is the tool via which Technogym runs "Wellness on the go", introduced in previous years and now enhanced with latest-generation precision training systems. End users thus have the possibility of connecting to Technogym products at any time and anywhere and to receive customised workouts.

All the applications used on the Mywellness Platform, designed to increase customer engagement, supporting them in achieving their health and fitness goals, therefore involve the application of national legislation (Legislative Decree 196/2003, as amended by Legislative Decree 101 of 10 August 2018), European legislation (Reg. EU 679/2016 – GDPR) and international legislation, regarding the processing of personal data. It is therefore essential that the compliance structure identified above should continuously support all the product development, marketing and sales functions. In this respect, the updated organisational structure described above has proved to be more opportune and necessary than ever. Certification of compliance of the Mywellness platform with the ISO/IEC 27001:201325 was also confirmed in 2023 with regard to: The Information Security Management System for the development, maintenance and management processes of the MyWellness cloud platform. The processing of data carried out through the Mywellness platform was audited by an external lawyer who confirmed the soundness of the settings regarding the responsibilities and roles of the different people involved in the process. The Data Protection Impact Assessment (DPIA) created in 2018 is also being updated as a result of changes to some types of processing and the new requirements being introduced.

b. CRM and Customer Data Platform

The CRM is the database that collects data from Technogym's contacts (leads or prospects) and customers. In 2023, the platform used by Technogym that collects CRM data was enhanced with the addition of data from the MyWellness platform and the processing carried out through the Customer Data Platform. The latter is in turn a data processing system designed to create marketing initiatives or develop new products or services. It is therefore clear that this platform also requires constant and substantial monitoring by the IT, data compliance and security functions.

In summary, in addition to updating the organisational structure, the implications for the protection of personal data engendered by these initiatives were first addressed by duly updating the processing register, updating the Data Protection Impact Assessment (DPIA) for the Mywellness Platform and drafting one for the Customer Data Platform. These activities were also carried out with the support of external consultants and pro-veritate opinions. Subsequently, the Data Processing Agreements were updated both for cases in which Technogym is the external data processor, as it is for the Mywellness Platform, and when Technogym is the data controller and intends to outsource certain data processing activities to suppliers such as Salesforce, AWS, or Google, to name a few.

Technogym's privacy policy was also updated to include new types of processing relating to the release of specific product functionalities or drafted dedicated privacy policies, as in the case of the Technogym Corporate Club (TCC).

In general, the involvement of the DPO/RPD has been ongoing and formalised via a series of notes, minutes and actions that can be obtained from the DPO.

Two dedicated email addresses were also created ([email protected] and privacy@ technogym.com) to receive, respectively, requests from data subjects or from individuals outside the organisation or requests for support regarding data processing that come from within the Technogym group (for example, requests for clarification from sellers in the field engaged in commercial negotiations that require in-depth analysis of data processing topics, or from subsidiaries or distributors).

Certification covers the development, maintenance and management processes of the Mywellness platform, which are directed and coordinated centrally from the company's headquarters in Cesena.

c. A common factor

Lastly, for all aspects relating to the management of personal data, we confirm the measures that have already been introduced; these include an ongoing and comprehensive review of the process of obtaining consent, where required, the adoption of all organisational control tools including the continuous checking of the security requirements of all suppliers who process personal data on Technogym's behalf, and the specific training of staff who work on data management systems. With regard to accessing and using data, we continued to respond to the various requests from data subjects, including data deletion, portability and access requests.

In line with the provisions of Art. 29 of the GDPR, training continues for all persons involved in data processing work, with different programmes according to the various roles held in the company and the privacy organisation chart.

d. IT security aspects

In the latter part of 2023, a training and awareness course on cybersecurity issues was launched for all Technogym S.p.A. staff (who have e-mail accounts and/or company devices) with the support of a consultant of proven competence and professionalism. This support has also been extended to managing any cases of cyber fraud in which the company were to become a victim. Lastly, following the replacement of internal cameras with more advanced, multifunctional models, which began in 2022, a plan to renew the vehicle number plate reading system and access control barriers has been drawn up and will be implemented in the first half of 2024.

RESPONSIBLE INNOVATION AND DESIGN 6

6 Responsible innovation and design

The philosophy of wellness, the aim of which is to disseminate a culture of health and prevention through regular physical exercise, is a consistent feature of all Technogym's activities and is a strategic guideline in all product development operations. In terms of equipment, all Technogym products are designed and built to combine exercise efficiency with high accessibility and intensity modulation in order to involve the largest possible number of users, from sporty, trained people to beginners or people with specific needs. The Technogym product range also includes specific lines for rehabilitation and models that can meet the needs of users with functional limitations or particular physical conditions. Since its foundation in 1983, Technogym's guiding principle has been all-round innovation in products, processes, its digital ecosystem, sales, marketing and in every other area of the company.

Products are at the core of Technogym's innovation strategy. Our Research and Development area employs more than 200 professionals including engineers, sports physiologists, designers and software developers. It also collaborates with external medical practitioners, physiotherapists, architects, athletes and sports trainers.

Innovation is also linked to the ongoing study and improvement of the Technogym Ecosystem, the company's digital ecosystem that includes smart devices, the Mywellness platform and the mobile app, both for end users and for fitness professionals. This tool allows users to access all Technogym machines from their own customised programmes, so that the equipment will automatically adjust to the exercise level prescribed by the instructor or doctor. All training data is then saved on the cloud platform to allow users, trainers and doctors to analyse the exercise, keep track of progress and update the programme according to the specific requirements of each person. The platform therefore offers consumers "Wellness on the go", a personalised wellness experience any time, anywhere, be it at home, on a trip, at work, at the doctor's or outside.

PRODUCT DEVELOPMENT 6.1

[Art. 3 para. 1, Italian Legislative Decree 254/16 – Social issues; Art. 3 para. 2(c), Italian Legislative Decree 254/16 – Health and safety]

Technogym's offer is based on an ecosystem that includes products, digital technologies and services (in 2021, there were 305 models on sale, including 247 in the Equipment segment and 58 in Digital), designed to meet highly diversified needs, ranging from sport (training for professional and amateur athletes) through to fitness (for everyone who wants to stay fit and have fun) and health (rehabilitation and prevention programmes).

The development process is designed to manufacture products that offer efficient, safe exercise, with an attractive design that provides the user with a positive experience from an emotional as well as a functional point of view. Increasingly, the machines are supplied with a training method and interactive content to inform and motivate users, supporting them in achieving their goals in the shortest possible time. That is why product development, which

is governed by a specific procedure, is carried out jointly by the Research and Development, Scientific Research and Innovation and Product Marketing departments.

"Open innovation"

The process to develop new products and services starts from the study of the end user's needs and emerging sector trends. Ongoing analysis of the market, trends in similar and other sectors, and relations with industry opinion leaders in the sector and the scientific community, is fundamental. Besides ideas and concepts developed in-house, through the Research and Development and Scientific Research and Innovation departments, and thanks to a strategic network of top-level professionals operating in various areas of the company's business (health, fitness & sport), Technogym constantly sources ideas, trends and needs from various business sectors to use in developing new products.

Technogym is also open to spontaneous ideas from the public, which can be submitted by inventors, enthusiasts or simply end users on the relevant area of the company website. If the ideas are of interest, the Scientific Research and Innovation Department will contact the person who made the suggestion. The product development process defines the procedure used to evaluate external ideas. By using this approach, Technogym can seize opportunities for innovation, while offering full legal protection to the owner of the idea. A Feedback Report system is also in operation. This consists of periodic reports submitted by the local subsidiaries in order to share market trends and specific requirements emerging in each country.

Scientific approach [DMA 416]

A scientific approach is an integral part of Technogym's product development, and the company works with many experts in the field as well as with many Italian and international universities. It also collaborates in a highly structured way with sporting federations and professional teams for testing top-level athletes. These partnerships focus on the biomechanical and physiological analysis of products being developed, in order to certify their security and effectiveness and study the benefits for sport and health. For athletes, Technogym offers them training support using Technogym Lab technologies.

Both elite athletes and Technogym products under development are tested at the new Technogym Lab, equipped with cutting-edge technology, at the headquarters in Cesena. Scientific research in the area continues, with publications of scientific studies in indexed journals and the participation of Scientific Department managers as speakers at national and international conferences, both in person and online.

Exercise is Medicine

For the sixteenth year running, Technogym has been a global partner of 'Exercise is Medicine', an initiative set up in the United States, now developed globally, whose objective is to promote the prescription of physical exercise as a medicine by doctors for a number of diseases and to train trainers and industry operators to provide therapies in the form of physical exercise programmes. Technogym's involvement with the initiative included the publication of new documents, participation in the annual convention held in San Diego (California) and the organisation of events to train doctors and trainers in Italy and other parts of the world. Since 2019, it has stepped up the training held in partnership with ACSM, by organising webinars and publishing in-depth articles.

To reinforce its commitment to the science-based promotion of the benefits of wellness,

2023 Consolidated Non-Financial Statement

Technogym has donated physical exercise centres with the most advanced equipment and technology to the Oncology Centre of Romagna and the new Centre for Exercise Therapy at IUSM in Rome. In general, Technogym has engaged with more than 30 universities and research centres over the years, to evaluate proposed innovations. To date, Technogym has an intellectual property portfolio of more than 320 patents, 250 designs and 415 national and international trademarks, which include 29 patents, 19 designs and 16 trademarks registered.

+30 320

Universities and Research Centres Patents

250

415 Design Trademarks

Functionality and safety controls [DMA 416]

The development process for new products consists of a series of phases that require periodic verification of the functional, bio-mechanical and physiological value of the machines, their effects on end users, and their structural and functional reliability, in order to guarantee complete safety for end users.

Each development process is managed by a "platform", which is an interdisciplinary team in which each member manages various steps, according to specific procedures. The Quality Assurance Department is represented on this "platform" through the Product Quality Managers (PQM), and using methodological support they help to prepare the Quality Profile & Risk Assessment Report. These preliminary tools, which are preventive, are essential to highlight the most sensitive aspects of the product in terms of its safety and functionality, all with the aim of achieving unconditional customer satisfaction. Throughout the process, Technogym also carries out tests for all product development projects, to check the user experience, to make sure that the machines meet the user's expectations, and to ensure that exercises can be done safely, comfortably and enjoyably. The prevention of injury and the avoidance of risks to health, which may result from inappropriate posture or incorrect movements, are fundamental aspects in the design of the machines. [416-1]

Specific attention is paid to machines that can be used in rehabilitation programmes; Technogym has obtained UNI CEI EN ISO 14385 certification for the design, production, installation and servicing of functional rehabilitation equipment. On this basis, it controls the processes used to develop the machines, which will also require the involvement of scientific partners to ensure that the machine actually produces the benefits that support the rehabilitation programme. When selecting its materials, Technogym always complies with Italian and European regulations to avoid the use of substances that may be hazardous

to health. Full compliance with all regulations is ensured by means of a conformity check carried out using the procurement information system. This will highlight any non-compliance situations before the product is distributed on the market.

Attention is paid to the impacts on the health and safety of end users throughout the product development process through risk analysis assessments, medical/scientific and functional validations of the above-mentioned products. Lastly, improvement actions that offset the risks are generated on the products, ensuring safety and maximising the health benefits for end users. During the production process, checks and controls are carried out to ensure that the functional components and each machine meet the final project requirements approved during product development. Full tests are carried out on each machine at the end of the process to check that they are functioning correctly ²⁶. [416-2]

TECHNOGYM UNIVERSITY

Training has always played a major role in the solutions offered by Technogym ²⁷. The Technogym Village, which is at the centre of a network that reaches millions of people, promotes the wellness lifestyle for the benefit of the scientific community and fitness experts. The international subsidiaries also host conferences, seminars and workshops for fitness operators and professionals, organised by Technogym University, the educational arm of Technogym.

Training is also supported by a wide range of online and on-site courses, as well as specialist seminars held by university lecturers with proven experience. In this way, the Technogym University contributes to ongoing scientific debate and the exchange of ideas and projects among industry operators, doctors and researchers. These opportunities for meeting enhance and spread the culture of wellness, and foster a multidisciplinary approach in testing innovative and cutting-edge solutions.

Sharing the culture of wellness goes beyond the Technogym Village: in 2023, the Scientific Research and Innovation Department continued its scientific work with the publication of scientific studies in indexed journals and the participation of department managers at national and international conferences as speakers, both in person and online. Specifically, in 2023, 14 scientific productions (articles and abstracts) were produced, while the scientific area organised or participated in 28 seminars or webinars to promote physical exercise and the wellness experience. Lastly, Technogym has a close relationship with the University of Bologna, with which it has worked actively since its early years.

During the 1990s, with the inauguration of Romagna University Campuses, collaboration also increased on technical and scientific themes. During the 2017-2018 academic year, Bologna University, inspired by Technogym, started its two-year master's degree course "Wellness Culture: Sport, Health and Tourism" in English, with the aim of training professionals to develop and adopt strategies, projects and initiatives promoting wellness in all contexts: businesses, public organisations, cities, states, sports and cultural associations.

26.

In 2023, there were no nonconformity issues (during the design phase) related to health and safety impacts of products or services.

6.2

See the Customers chapter for information on training for branches, distributors and trainers.

Technogym Ecosystem: tailor-made training based on artificial intelligence

120

People's awareness of the benefits of regular physical exercise for health and prevention is increasing. Thanks to its unique ecosystem, Technogym can offer a fully customised training experience based on the needs, passions and aspirations of each individual and offer effective and engaging training experiences in fitness, sport and health.

and aspirations (in the gym, at home, in a hotel, at work, at the doctor's and on-the-go), while operators can significantly boost their business through accurate metrics, advanced profiling and Technogym Mywellness management software.

Today, over 25 million people are connected to the Technogym ecosystem in 22,000 wellness centres and over 400,000 private homes, proving that digital innovation has always been a part of Technogym's DNA. Way back in 1996, Technogym launched the Wellness System, the first software for managing training via its iconic yellow portable device, the TGS key. Since then until the launch in 2019 of the Technogym Live, platform, which offers a huge on-demand library of video content to choose from, there has been the introduction of the first TV screen on fitness equipment (2003), the first online fitness product in 2007, the creation of the first cloud platform ten years ago and the launch of the Technogym app in 2021.

Technogym App allows users to access a wide variety of programmes dedicated to fitness, sport and health, developed by a team of trainers and athletes specialising in various disciplines. Technogym Coach, the virtual intelligence that unites the entire Technogym Ecosystem, guides users step by step with customised workouts, the "Precision Programs", which are tailored to suit goals, progress, time and equipment, if available. Alternatively, the Technogym app offers the chance to train like a professional cyclist, runner, tennis player, golfer or skier with the "Signature Programs", dedicated to sport, and the product of Technogym's more than 30 years' experience as a flagship brand of the Olympics and sports champions around the world.

Thanks to the Technogym Live platform, you can access a wide range of on-demand video workouts: including sessions guided by the trainer, training routines designed for your main fitness, sport or health-related goals, and outdoor immersive routes that allow you to train in natural settings or in the most beautiful cities in the world.

Technogym Coach, the digital coach based on the artificial intelligence of the Technogym Ecosystem, provides "precision training", namely, a training experience that is completely customised to the needs, objectives and fitness of each individual user. Being fully customised, precision training leads to superior results in less time and ensures greater safety and motivation. Moreover, thanks to artificial intelligence, the program evolves over time with the

Training at the gym and on-demand workouts at home. A hybrid model is also now common in the fitness world, where sessions with your personal trainer are coupled with home fitness experiences. It's no surprise that some professionals have learned to combine virtual and face-to-face classes. Something that became necessary during the pandemic has quickly turned into an opportunity, allowing anyone to train when they're free, wherever they want. This has all been made possible thanks to technology, which has transformed the wellness sector: fitness services, from apps to video content, have become even more prolific, generating a combination of training and high-tech that has now become inseparable.

Over the years, Technogym has developed an ecosystem that is unique in the sector, consisting of connected smart equipment, software, apps, artificial intelligence, on-demand training content and digital services. Users can have a seamless experience, perfectly tailored to their goals, passions

TECHNOGYM HAS DEVELOPED AN ECOSYSTEM THAT IS UNIQUE IN THE SECTOR, CONSISTING OF CONNECTED SMART EQUIPMENT, SOFTWARE, APPS, ARTIFICIAL INTELLIGENCE, ON-DEMAND TRAINING CONTENT AND DIGITAL SERVICES

THE TECHNOGYM APP ALLOWS YOU TO ACHIEVE SUPERIOR RESULTS MORE QUICKLY. THANKS TO ITS AI-BASED COACH, IT OFFERS A FULLY CUSTOMISED WORKOUT EVERY DAY, ADAPTED TO THE PLACE WHERE IT WILL BE CARRIED OUT: IN THE GYM, AT HOME, IN THE HOTEL OR OUTDOORS. THE TECHNOGYM COACH ALSO CHANGES THE PROGRAM OVER TIME BASED ON PROGRESS AND FITNESS LEVEL.

user's progress and adapts according to the place and the equipment available.

In addition to a daily workout, the Technogym Coach proposes personalised meditations and food suggestions according to your objectives. You can also listen to audio content to alleviate stress or for sleep, relaxation or motivation, drawn from the app's extensive content library. The point is that wellbeing does not end with the workout.

A good night's sleep, balanced diet and stress management all play an important role in helping you to get the best out of each daily workout.

2023 Consolidated Non-Financial Statement

PERSONAL WELLBEING 7

7 Personal wellbeing

[ART. 3 (2 D), ITALIAN LEGISLATIVE DECREE 254/16 – ASPECTS RELEVANT TO PERSONNEL MANAGEMENT; ART. 3 (2) ITALIAN LEGISLATIVE DECREE 254/16E – HUMAN RIGHTS]

"Technogym is actively involved in building a positive, efficient environment within the company by engaging and motivating internal and external personnel, promoting collaboration and teamwork, facilitating the exchange of information and the transfer of know-how".

7.1

OUR VISION AND MANAGEMENT MODEL

In all the contexts in which it operates, Technogym complies fully with national regulations and international conventions on workers' rights, rejecting any form of child labour or forced labour, and guaranteeing freedom of association for all its employees. Technogym makes sure that all employees sign contracts that comply with the laws in their respective countries. All Italian employees have contracts that meet the requirements of the national collective agreement on working hours ²⁸. [DMA 407, 408]

The Group has also put in place a set of internal rules and tools that govern Technogym's relationship with its employees. The aim of this is to enhance, stimulate and ensure employee wellbeing. The profile of our company, and the way it conducts its business, do not pose any risks to employees' human rights. Relations between the company and its staff, including the values applied in the workplace, are dealt with in more detail in the Code of Ethics. [DMA 412]

The Code of Ethics of Technogym S.p.A. outlines the company's commitments to its staff, both generally and with specific reference to recruitment, equal opportunities and the working environment. It also identifies the standards of behaviour that employees are expected to meet, in order to achieve the working environment defined in the Code. The Code of Ethics of Technogym S.p.A. requires all Managers to be involved in its application. "Managers" are the people responsible for one or more departments or areas within Technogym S.p.A. or its subsidiaries; a commitment to complying with these obligations therefore extends to all management holding roles of responsibility within the Group. Similarly, periodic training courses on the principles of the Code of Ethics are run for all staff.

Our internal Human Resources management procedure clearly expresses the principles that must be complied with by anyone required to supervise the work and career pathways of their team. All personnel who perform management activities are involved in specific training activities to better understand the role of a manager at Technogym. To build a stimulating, rewarding and inclusive working environment, Technogym is committed to sharing its corporate vision with all employees. This involves a number of training activities, manuals and an intranet available to all employees. All these actions are implemented to strengthen the Team's skills to face the biggest challenges of the future, with a specific focus on the digital transformation, in which the Human Resources function is front and centre.

Internationally, Belgium, Spain, Portugal, Germany and France have regional or sectoral collective agreements, while the Netherlands has a collective company agreement. In all other cases, contracts with individual employees include compliance with all the national regulations applicable in the country in question.

THE GROUP'S PEOPLE 7.2

The Group aims to encourage permanent employment, which strengthens employees' sense of belonging to the organisation.

In 2023, the Group had 2,285 employees, a marked increase compared with the previous year. The main reasons relate to the investments made in sales branches in 2023, which also saw the creation of two new subsidiaries (in Canada and Arabia) and the consolidation of TG Emirates within the Group.

At Technogym S.p.A., 97% of contracts are permanent, up from 2022, confirming the efforts being made to enhance its human capital skills. At Technogym EE, 81% of contracts are permanent, an increase on the figure in 2022 but still linked to the need to cover seasonal production peaks, requiring flexibility in the use of resources. For the rest of the world, the percentage of permanent contracts is stable compared with previous years and stands at 96%. [2-7]

Employees by contract type, full time and part time, and by gender 2023

With reference to salary levels, at the offices and Italian production site of Technogym S.p.A., 13% of personnel have a managerial role, 58% are clerical workers and 29% are manual workers. With regard to the rest of the world (sales branches and the Slovakian production site), 11% have a managerial role, 64% are office staff while 25% are manual workers. These percentages are very similar to those of the previous year except for that referring to employees of the subsidiaries which increased by three percentage points: the change is mainly due to the development of existing commercial subsidiaries, the creation of new subsidiaries and the inclusion of Emirates in the consolidated scope of Technogym.

Technogym S.p.A.

The staff turnover rate varies between offices and production sites. As sales are seasonal, flexible workforce management is necessary at the production site.
This is determined by the number of people leaving the organisation during the year, compared to the average headcount calculated on a monthly basis. Intercompany job rotation (international mobility) - seen as a strength in terms of the Group's internationalisation - was not considered in the turnover rate.

Overall, 499 people joined the Group in 2023, including 62 employees from TG Emirates. 357 people left the Group, the trends of which varied according to the geographical area ²⁹.[401-1]

In 2023, most new hires were once again in the 30-50 age group (57%), mainly in Technogym S.p.A. Although investment in this age group is still predominant, throughout the group there was a significant investment in the youngest age group (under 30 years of age), which stood at around 40%.

In terms of departures, although the percentage in the 30-50 age group was still higher in 2023, a significant decrease in the percentage of employees aged under 30 was noted (from 33% to 22%). There was also a slight increase of 5% in the over-50s, mainly due to retirements at the end of the year.

Turnover rate (departures) ³⁰

Technogym S.P.A.	8.2 8.1 % % 7.2 [2023] %	[2022] [2021]
Technogym EE	33.2 22.0 % % 28.9 % [2023]	[2022] [2021]
Subsidiaries	20.1 26.2 % % 24.8 % [2023]	[2022] [2021]

The turnover figures for 2023 reflect the different types of activity performed at the different subsidiaries. The negative turnover rate for Slovakia is falling sharply; in any case this percentage is mainly driven by specific trends concerning peaks in production that require an increase in the workforce at certain times of the year. In the sales branches, there was a significant drop in the turnover (-6.1%) compared with the previous year. The figure for Technogym S.p.A. is stable compared with 2022.

EMPLOYEES RECEIVING A PERFORMANCE APPRAISAL AT THE BEGINNING OF THE YEAR 2023 (BY GENDER AND JOB CATEGORY) RELATING TO 2022

Total number of eligible employees, 2022

Total number of employees appraised

Number of employees appraised

EMPLOYEES BY CONTRACT TYPE AND GENDER

Total headcount

Employees on permanent contracts

Employees on fixed term contracts

FULL-TIME AND PART-TIME EMPLOYEES, BY GENDER

Total headcount

Part-time workers

EMPLOYEES JOINING AND LEAVING THE ORGANISATION, BY GENDER

Total number of new employees hired during the year

Men

EMPLOYEES JOINING AND LEAVING THE ORGANISATION, BY GENDER

Employees leaving the organisation during the year

Men

GROWTH AND DEVELOPMENT 7.3

"Training and Development activities at Technogym are aimed at promoting individual skills, improving performance and corporate organisation, in order to achieve the business objectives."

To ensure that excellent results are achieved, it is fundamental to invest in developing resources by considering the capabilities and potential of individuals and the company's objectives. For Technogym, training and development are strategic levers in improving staff performance.

Training and development programmes represent a body of experiences that generate learning through an exchange of expertise (knowing), abilities (knowing how to do) and attitude (knowing how to be). [DMA 404]

Ongoing training and strengthening of skill set

Training is an important way to develop and consolidate skills, while promoting the Group's values and strategic expertise. For this reason the company organises training programmes through the Technogym University with its in-house trainers on the key company processes. It also provides cross-cutting training programmes based on developing soft skills or new expertise, mainly through external trainers, and information sessions on the Technogym culture, open to all staff.

Technogym offers an annual, structured training plan. At the start of each year, senior management, together with the HR Division, defines the key competencies to be developed and the training priorities for the year, in line with the strategic objectives, the Technogym Vision and the company skills model. The annual training plan implements the training needs of staff, reported by their line managers. These needs are identified during the appraisal process, the drafting of succession plans and individual development pathways.

Training is delivered in various forms: on-the job training, via the assignment of projects and new, challenging activities; continuous feedback; coaching and mentoring to support staff on a development programme, e-learning to ensure regular updating via self-training; and classroom-based training with seminars.

Training is categorised as follows:

› Technical and Managerial Training aimed at developing expertise for specific roles, including positions with a high managerial content and/or supervisory roles in order to develop interpersonal, communications and behavioural skills at all levels in the organisation;
› Commercial Training: for Sales and Marketing roles;
› Health and Safety Training: mandatory health and safety training for the company's health and safety officers.

2023 average training hours by grade and gender at Technogym S.p.A., TG EE and subsidiaries

In line with the company's values and in order to promote a leadership culture at all levels, training activities based on the Technogym Leadership model continued at the headquarters, involving all managers and team leaders, via classroom training, hands-on workshops and team coaching.

The training plan focused in particular on the development of interpersonal and sales skills, time and project management and compliance issues.

Training for blue-collar workers continued at the headquarters with the Scuola dei Mestieri (Skills School) Project. This involved new entrants in the production area, i.e. mainly temporary staff (temps), who do not fall within the scope of the figures included in the Sustainability Report.

Support for professional growth and development

Technogym's annual performance appraisal process enables training and development activities to be identified and implemented in order to improve performances, behaviours, and technical expertise, and to identify staff with potential and talent who are eligible for individual development plans.

Performance appraisal is a strategic process used by the company to measure and assess the fulfilment of individual targets and behaviours in each role.

100% of the workforce is eligible for appraisal, after being with the company for at least six months. In Slovakia, production operatives are appraised according to a local appraisal system based on criteria that meet the specific needs of production activities and roles.

The number of people appraised in 2022 was 1,271. For 2023, the only figures available were for the eligible employees, as the appraisal process ends in April 2024.

EMPLOYEES JOINING AND LEAVING THE ORGANISATION, BY AGE GROUP

Total number of new employees hired during the year

Aged 30 to 50

Under 30

Over 50

EMPLOYEES JOINING AND LEAVING THE ORGANISATION, BY AGE GROUP

Employees leaving the organisation during the year

Under 30

Over 50

ELIGIBLE EMPLOYEES FOR 2023

Total number of eligible employees in 2023

To ensure the sustainability of the organisation and to cover key roles, succession plans are drawn up annually. Based on these plans, development pathways are then designed, which in 2023 involved an increasing number of staff from all company areas.

Diversity and equal opportunities

The Code of Ethics sets out the commitment of Technogym S.p.A. to guaranteeing a workplace that is free from racial, cultural, ideological, sexual, physical, moral, religious or other forms of discrimination, and one that offers equal opportunities under equal conditions. [DMA 405; 406]

At every stage of the working relationship, the Group focuses on respect for diversity and equal opportunities and on preventing all forms of discrimination. ³¹

The Code of Ethics also specifies that company property, in particular IT equipment or online resources, must never be used for the committing of offences, for inducement to commit offences or for racial hatred, inciting violence or the violation of human rights.

There were no instances of discriminatory behaviours from 2016 to 2023. [406-1]

CONTROL TOOLS

Code of Ethnics GTD Manual

Personal wellbeing

2021 2022 2023

AVERAGE TRAINING HOURS BY JOB CATEGORY AND GENDER AT TECHNOGYM S.P.A.

Men

2021 2022 2023

AVERAGE TRAINING HOURS BY JOB CATEGORY AND GENDER AT TECHNOGYM EE³²

There are no commercial training activities in Slovakia, as the operations in this country are directly linked to production.

Men

AVERAGE TRAINING HOURS, PER JOB CATEGORY AND GENDER, FOR THE SUBSIDIARIES ³³ 27.8 20.0 23.7 25.1 — Total number 22.9 17.4 26.0 21.1 — 19.0 15.9 14.6 18.0 — Men Women Managers White-collar Blue-collar 2021 2022 2023

The "manual workers" category does not include training hours as there are no employees in the subsidiaries included in this category.

Men

Employees by professional category, gender and age

Finally, Technogym S.p.A. complies with the legal obligations applicable to the recruitment of people with disabilities, who are hired under direct agreements with local authorities and social cooperatives.

	2021	2022	2023
Number of employees with disabilities	27	27	25
Number of people provided for in the Provincial agreement (Art. 11)	0	0	1
Number of people employed under agreements with social cooperatives (Art. 22)	2	2	2
Number of employees hired, classified as disabled	0	3	6
Exemption quota recognised by the Provincial authority	23	26	24
Total Shortfall	0	0	0

EMPLOYEES BY PROFESSIONAL CATEGORY AND GENDER

Percentage of Operations Committee members (%)

Percentage of clerical staff (%)

Percentage of manual workers and equivalents (%)

EMPLOYEES BY PROFESSIONAL CATEGORY AND AGE GROUP

REMUNERATION 7.4

Technogym's remuneration policy is practically focused on aligning senior management's interests with those of the shareholders and with developing the human resources themselves. The primary aim is to attract, motivate and retain the best talent, essential for achieving business results.

Technogym is committed to offering fixed and variable remuneration in line with the external market that respects the job responsibilities of the role held, valuing individual skills as well as the professional experience of each employee. By analysing each role, it is possible to monitor internal fairness, checking the consistency of salary packages of employees of the same level, and external competitiveness with the market.

Based on performance appraisal criteria, business requirements and continuous feedback from the market, Technogym develops tailored career plans for its employees, enabling them to increase their salary.

The company's remuneration policy ensures fair treatment irrespective of gender or any other form of diversity.

In order to ensure business continuity and its legacy, Technogym develops retention and succession plans for key resources that are considered essential for business growth.

The short- and long-term variable components are based on the achievement of objectives aimed at the continuous growth of the business.

The objectives in both cases are defined according to the SMART principle, i.e. they are Specific, Measurable, Achievable, Relevant and Time-based.

The short-term variable component of remuneration is intended to reward the achievement of challenging targets and exceptional results aligned with the company's strategy. The short-term variable remuneration system is meritocratic and designed to represent a direct link between remuneration and corporate and individual performance results. It comprises a portion linked to short-term criteria (Management by Objectives, MBO) based on the achievement of annual Group and individual results. From the individual objectives, sustainability KPIs relating to the specific area of expertise can be determined as well as a portion linked to role-dependent criteria.

Long-term variable remuneration is only for key positions within the company, and is designed to align individual and corporate results with investor interests.

It can be seen that the company's remuneration policy is strongly linked to performance appraisal. Each year, a salary review is carried out after the performance appraisal process. This process aims to redefine the fixed and variable salary for each employee, based mainly on individual performance, as well as internal fairness and external market data (benchmarking).

The HR Managers and Department Managers carry out this process. HR management and the Department Manager define the salary percentage increase, the percentage of the population involved per area and the criteria for salary changes (see section 7.3 on growth and development).

The salary package paid to all employees may include benefits, defined on the basis of internal fairness criteria and external competitiveness, in addition to the amounts provided for under the Italian national collective agreement and in accordance with the foregoing.

To ensure the quality of the working environment and corporate culture, Technogym has launched "W4W" (Working for Wellness), comprising a series of wellness-related activities and services, via the introduction of company agreements with the region, tax advice, flexible working hours for the convenience of employees and their families, etc. (for more details of the Working for Wellness project, see section 7.5).

Description of remuneration policies for members of the highest governance body and the key managers

Fixed component

The fixed component of remuneration is consistent with the salaries identified by the company in line with the market and is structured in such a way as to appropriately remunerate the skills, commitment and activity performed on an ongoing basis by the key managers. The total fixed remuneration of key managers may also include housing allowances, and for key managers who hold the position of director in the subsidiaries, other compensation and allowances such as to appropriately remunerate the commitment required by the role.

Annual variable component

Key managers participate in the 2023 MBO annual incentive plan, as described in Section F.1.1 of the Remuneration report and/or one-off bonuses linked to exceptional results and/or specific non-recurring projects. For some of the key manager positions a stability plan may be drawn up that rewards long service in the company regardless of corporate or individual performance indicators. This is effected through the payment of bonuses at predetermined dates, which may not, however, exceed 25% of gross annual salary.

Medium- to long-term incentive plan

As a way of contributing to the creation of value in the medium to long term, key managers are also the beneficiaries of medium-term incentive plans. The company has three medium-term incentive plans in place: the first for the period 2021-2023, the second for the period 2022-2024 and the third for the period 2023-2025. In addition, a new medium-term incentive plan for 2024-2026, which will also be for managers with strategic responsibilities, will be submitted for approval in 2024. This will be based on the assignment of the right to receive free shares upon the achievement of certain company performance objectives ("2024-2026 Plan").

The main features of the 2024-2026 Plan awaiting approval are:

› performance objectives set in advance and identified in the company's economic and financial performance, calculated with reference to:
- Cumulative Net Profit for the period 2024-2026, and
- Cumulative Free Cash Flow for the period 2024-2026 (i.e. the total of the Group's Free Cash Flow for the three years included in the vesting period);
- an increase in 2026 in the percentage of the least represented gender (women) in management compared to 2023;
- a reduction by 2026 in the pay gap between the most represented gender and the least represented gender compared to 2023
› vesting period, a three-year period for the right to obtain shares arising from the vesting of the assigned right;
› binding non-transferability of the shares, a "lock-up" period of 12 months from the date of assignment of the shares relating to the plan, without prejudice to the option to sell the percentage of shares stipulated in the plan to provide for payment of taxes on the bonus accrued.

The beneficiaries of the 2024-2026 Plan will be identified by the Board of Directors from among other employees and staff of the company or the Group that hold roles that the company deems important.

Some of the managers with strategic responsibilities will also be recipients of the new longterm incentive plan called "Challenge", as described in Section F.1.3 of the Remuneration report.

Benefits

All key managers are also assigned a number of benefits, including a company car and mobile phone. All key managers also have the following insurance cover: D&O (Directors' and Officers' Liability Insurance), life policy, insurance for the reimbursement of medical expenses and occupational and other accidents

WORKING 4 WELLNESS 7.5

For over 40 years, Technogym's philosophy has been that the more people who enjoy physical and mental wellbeing, the better place the world will be: Let's Move for a Better World!

Once again this year, Technogym is committed to bringing about and actively promoting this change to the planet, starting with its most important resource: its people.

With this in mind, improvement work was carried out on a unique programme called "W4W" (Working for Wellness), which guarantees a high-quality working environment and corporate climate by offering people the chance to fully experience a wellness lifestyle in all areas of their daily lives.

Specifically, corporate wellness is one of the services of excellence in the W4W programme, offering all Technogym staff, both at headquarters and the 14 subsidiaries around the world, the chance to access the company's Wellness Centre or to take advantage of a specific welfare credit. The project also includes annual medical check-ups (welfare screening), physiotherapy services at the Wellness Centre, customised training and educational programmes.

The Corporate Wellness project also includes educational activities and workshops, which focus on different topics, including a positive mental attitude, healthy eating and team building, to provide people with the tools and experience they need to improve their lifestyle.

The "W4W" programme also provides the Technogym Restaurant: an in-house catering service that follows the "Eat Well, Eat Wellness" philosophy. Moreover, since 2019, the new T-Take Home service has been available, which allows all Technogym S.p.A. staff to book dinner directly from an app and take it home to enjoy a meal with their families.

In addition to corporate wellness, the W4W programme is also committed to enhancing various aspects of employees' personal life, in which context it offers special agreements, tax advice, supplementary health policies, summer centres and other welfare services.

Work-life balance

The balance between professional life and private life (defined as the "work-life balance") is a key element in the Working 4 Wellness project.

Personal wellbeing

To enhance and ensure the private life aspect, the supplementary company agreement contains a number of benefits, in addition to those stipulated by the legislation in force, to make life easier for employees.

For example, some of the main areas of application relate to:

› health: including various types of paid leave for specialist consultations for employees and their children;
› personal and family life: including optional maternity or paternity leave and finding a place for children in a nursery;
› transferable holidays: holidays may be transferred to a colleague to help out with parents, children, spouses, civil partners or co-living partners.

ENGAGEMENT WITH WORKERS' REPRESENTATIVES 7.6

"Technogym recognises the right of its staff to belong to trade unions, and protects their freedom of association and the opportunity to appoint their own representatives as defined in the Italian Constitution, the Workers' Charter, the current national collective agreement and other agreements"

In 2023, the new Supplementary Company Agreement was signed, confirming that relations with workers' representatives were constructive and conducive to inclusivity and maintaining a healthy working environment. In the new agreement, the utmost attention was paid to parental and family leave, maternity leave, medical check-ups and the right to study, as well as increasing the portion allocated to welfare. The objectives were also reviewed with a view to improving the safety of the working environment, production efficiency, product quality and customer service level.

Throughout the year, thanks to regular discussions, the main tools provided for in the existing supplementary agreement were applied, enabling efficient management of market requirements, continuous improvement and active participation in the achievement of corporate objectives. All Technogym S.p.A. employees are covered by collective bargaining agreements. [2-30]

OCCUPATIONAL HEALTH AND SAFETY 7.7

"Technogym is actively involved in building a positive, efficient environment within the social context in which it operates by engaging and motivating internal and external personnel, promoting collaboration and teamwork, facilitating the exchange of information and the transfer of know-how".

"A welcoming, clean, tidy and safe workplace encourages people to work to their best ability" [DMA 403]

Attention to health and safety in Technogym is part of its value chain. Focusing on and continually improving the workplace environment is not just a way for the company to comply with laws and regulations and reduce operational, financial and reputation risks, but also one of the levers via which it achieves its corporate mission. The Group strengthened its commitment by approving the Health and Safety Policy in 2023. For Technogym, the adoption of the Health and Safety Management System is one of the tools it uses to ensure the sustainability of its business. Ensuring the health and wellbeing of everyone, of all ages, promoting a healthy and safe workplace, in full compliance with the commitments of the UN Agenda 2030. For Technogym, engaging, motivating and empowering all stakeholders, employees, customers, suppliers, institutions and communities means an assumption of responsibility for the whole community.

The governance of these aspects combines with the wellbeing promoted by the organisation and is part of a wider-ranging project in the interests of staff and the external social context in which a company grows today and for which it becomes a reference point. Although there are several high-risk tasks (including those of workers working at height, and of electricians or workers using lifting equipment or handling and storing materials ³⁴ etc.), the Group has not experienced any serious accidents related to these risks, nor have its employees suffered any significant exposure to chemical and biological risks, and this is evidenced by the trend in accident data. In 2023, remedial action was taken following events that occurred, including the implementation of innovative technical measures and the redesign of certain work areas, which had an impact on efficiency, as well as the creation of work stations that promote the inclusion of all employees.

There were no cases of occupational illness recognised by INAIL in 2023. The careful design of workplaces, the analysis of processes, and the design and choice of large, well-lit spaces and equipment are conducive to the utmost compliance with applicable workplace health and safety regulations. Technogym's commitment to promoting the wellness of the Group's employees over and above the requirements of law is a key driver for the company in generating an extended value chain for its stakeholders and strengthening its sustainable business model. For Technogym, rules are not a limit, but an opportunity that gives it an advantage.

Since 2006, oversight of health and safety has also been ensured following the voluntary implementation of a BSOHSAS 18001-certified management system, which subsequently achieved ISO 45001 certification in 2018, covering all Technogym S.p.A. sites.

The ISO 45001 management system affects all employees ³⁵, including workers with temporary contracts and on-site contractors engaged in the most important processes.

The implementation of the management system ensures that organisational and technical measures can be monitored and special codified procedures applied, generating input for continuous improvement activities and introducing innovative systems to support employees and internal and external processes. The ISO 45001 standard was also implemented in the Technogym E.E. production site and the Technogym UK subsidiary in 2018, leading to certification of the Group as well as individual companies. Systematic internal and audits have made it possible to monitor and continually improve the system. Auditing is done on a sample basis, meaning that the internal and external workers, who are audited by way of an on-site interview, are a small percentage of the total. Around 10% of workers have been subject to internal audits and 5% to external audits. In 2023, as in previous years, Italian and international standards and norms were followed when implementing the processes. The culture of prevention, which has been consolidated over time, has brought out the resilience of the processes and the organisational ability of the staff, cushioning the impacts of the rapid change in procedures and daily operating methods caused by external emergencies such as the 2020 pandemic.

In 2023, the area in which Technogym headquarters is located was hit by a serious flood; however, the assets were not damaged due to effective protection tools, namely an innovative and sustainable site design, large rolling tanks, a collection basin and reinforced

At Technogym EE, the work of the painting and cleaning workers, and from 2018 also that of the upholstery workers, is considered high-risk.
For more information, see section 7.2

earth to support the embankment of the nearby stream. Faced with the impending event, the company remained in contact with the local civil protection services, promptly managing the preventive evacuation of the premises to ensure that employees returned home safely, in anticipation of the worsening emergency.

Technogym periodically defines objectives and areas for improvement to increase the effectiveness of its actions and efficiency of its organisation, in order to prevent incidents, accidents and occupational illnesses and create a safe, healthy environment, in line with staff expectations.

Our organisation is committed to improving its ability to pick up on any signs of weakness at all times, by monitoring a set of indicators used to control health and safety and identifying factors that emphasise the proactivity of the people who work in the Group. One of the core elements of the system is the promotion of a common culture of safety in the workplace and related skills by means of training initiatives, and each staff member is invited to become a health and safety champion and play an active part in improvement. Training is carried out across all areas, with a particular focus on production department workers as they have more exposure to accident risk. In 2023, together with the traditional tools for employee participation, the company app, Maturano le idee ("Ideas develop"), came into full use, a tool with which employees propose ideas for improvement in different areas, including health and safety. Suggestions and actions to be implemented are visible to all employees on the app, as well as on the physical notice board.

Health and safety training is an ongoing activity, supported by a company training programme. It starts as soon as someone joins the company, with the mandatory part linked to the State/Regions Agreement, and continues with on-the-job and other training relating to the operating roles. The entire health and safety training plan is included and regularly updated in line with the Risk Assessment Document (RAD). The plan is also extended to temporary staff and interns. In addition to the ongoing training process, a supervisory process is also carried out by supervisors, who have a tool called "supervisor's diary", which enables them to continuously train their colleagues on health and safety issues and on compliance with procedures. There is no retaliation for removing workers from dangerous situations: all managers have been trained on the updates of 81/2008, December 2021, which obliges them to suspend operations in potentially dangerous situations. Emergency plans constitute a further tool, via which workers are notified to stop work and leave the premises in the face of imminent danger without having to wait for authorisation at the sound of an alarm, or if earthquakes occur. In 2023, more than 3,852 training hours were delivered in Italy on health and safety issues, while in Slovakia, 2,751 hours were delivered ³⁶.

The tables with the figures relating to the health and safety training hours are available in the attachment

All employees and staff, primarily those operating at the production site, are trained to become involved in improvement and are encouraged to report any risks they may notice, following structured procedures. All reports of potential hazards are addressed, and specific action will be taken if actual risks are found. Technogym has developed a process for identifying hazards and assessing risks, which means it can apply an appropriate prevention and control system whenever necessary. Specifically, this process starts with data acquisition and analysis of the processes and activities, meaning that the hazards can be identified and the risks assessed. In this way, it is possible to identify and schedule suitable measures for taking the specific steps required as described in the graphic below.

In 2023, the first software-supported revision of the RAD was finalised; the tool allows a better and more accurate mapping of sub-processes and work equipment for risk assessment purposes. The tool facilitates consultation by the functions involved in the individual processes.

Once an incident has been reported or has occurred, more detailed analysis of the causes is carried out via an immediate inspection, interviews and immediate temporary actions. Weekly meetings are then held to track the progress of the activities with respect to the corrective actions identified. The process used to identify risks is described in the working method of the RAD. Notifications of potentially hazardous circumstances and situations revealed during workplace inspections are prioritised. If the priority is high, there is immediate intervention aimed at mitigating the risk in question and eliminating it when technically possible. The same method applies for medium and low priorities any time immediate action can be taken.

In the production departments, the structure of supervisors focusing on crossdepartmental continuous improvement was strengthened. For staff working in the production departments, there is a bonus system (included since 2003 in the company supplementary agreement) through which proactivity is encouraged, by measuring participation in the improvement process, including through notifications of potential danger and suggestions for improvement in health and safety. As well as enabling workers to play their part in the improvement process, this facility helps them to fulfil their legal and regulatory requirements, including reporting anything that may endanger their health or the health of others. Through this tool, the company and its staff work together to build, along with H&S governance, an effective prevention process. Every six months, a meeting is arranged for all production department staff, where the results for the period are announced, and the best ideas and reports that have led to improvements and contributed to health and safety prevention are rewarded. This activity is also carried out in small groups during the year. The technical approach is reinforced with an approach that takes account of the "human factor", which significantly affects the achievement of the expected result - its success or failure - by building over time a Group culture relating to risk perception. Training in this area enables workers to respond appropriately to a critical event.

Thanks to the participation of the various areas of the company, the organisation can take a proactive approach, and progress towards continuous improvement in relation to established indicators and cultural change. Everything described here takes place in an orderly, clean, well-organised, planned working environment, applying unique aesthetic criteria, in the knowledge that order promotes positive emotional and cognitive responses, improving the ability to concentrate and clarity of thought. For Italy, workers are represented by Workers' Safety Representatives, who are part of the company's Workers' Council. The workers' safety representatives have a specific number of hours to carry out the tasks assigned to them; they are also part of consultation and continual improvement groups that meet periodically.

In 2023, the meetings were held on a bi-weekly basis, strengthening the consultation and participation process of workers through their representatives with regard to emerging aspects of health and safety at work. In Italy, the number of accidents was stable in 2023, compared with the previous year, while the severity index was significantly reduced.

One area to which Technogym has always been committed is protecting the health of its workers and this is a cornerstone of the risk mitigation process. The occupational medicine service is outsourced. The Medical Officer comes into the headquarters every fortnight, is fully informed about the processes, and visits the workspaces whenever needed, to analyse work stations, in addition to the standard annual inspections required by law. Workers can contact the occupational health doctor directly by email or phone. In 2022, the Medical Officer implemented a secure website, where each employee can access their medical records, which are collected organically and generated at the time of their periodic health checks.

Communication via posters on the health and safety noticeboard at the industrial site and the noticeboards at the production site contain up-to-date information on the subject, while any communications or documents concerning health and safety feature plenty of visuals and images for ease of comprehension. Each employee can also view the health and safety management system documents on the dedicated section of the company's intranet. Information notices, training material and internal company procedures are considered part of the health and safety communications.

Accident index

		2021		2022		2023
Accident index	Technogym S.p.A.	Technogym EE	Technogym S.P.A.	Technogym EE	Technogym S.P.A.	Technogym EE
Employees:
Total hours worked	1,336,251	732,844	1,385,128	816,580	1,380,107	874,680
No. of accidents affecting employees (>1 day of absence)	9	3	5	2	6 36	1 37
Of which serious	0	0	1	0	0	0
Frequency index 38	6.74	4.09	3.61	2.45	4.35	1.14
No. of days lost due to injury	184	58	152	121	90	205
Severity rate 39	0.14	0.08	0.11	0.15	0.07	0.23
Non-employees:
Total hours worked	147,120	0	127,218	0	143,907	0
No. of accidents affecting employees (>1 day of absence)	5	0	1	0	1	0
Of which serious	0	0	0	0	0	0
Frequency index 40	33.99	0	7.86	0	6.95	0

Type of accident/injury: fall, slip, bump and trip. 37. Type of injury: fracture. 38. The indices are calculated by multiplying the number of work-related injuries by 1,000,000 and dividing by total hours worked. 39. The number of days lost due to injury is multiplied by 1,000 and divided by total hours worked. 40. The indices are calculated by multiplying the number of work-related injuries by 1,000,000 and dividing by total hours worked.

Non-employees by type of contract, broken down by gender and region⁴¹ [2-8]

2021
	Technogym S.p.A.		Technogym EE		Subsidiaries		Total
	Women	Men		Total Women	Men		Total Women	Men		Total Women	Men	Total
Interns and apprentices	8	9	17	0	0	—	3	1	4	11	10	21
Temporary workers	11	49	60	1	11	12	8	3	11	20	63	83
External staff (agents)	0	36	36	0	0	—	1	15	16	1	51	52
Total	19	94	113	1	11	12	12	19	31	32	124	156

2022
	Technogym S.p.A.			Technogym EE		Subsidiaries		Total
	Women	Men		Total Women	Men		Total Women	Men		Total Women	Men	Total
Interns and apprentices	5	3	8	0	0	0	4	1	5	9	4	13
Temporary workers	33	51	84	1	4	5	10	5	15	44	60	104
External staff (agents)	0	33	33	0	0	0	1	14	15	1	47	48
Total	38	87	125	1	4	5	15	20	35	54	111	165

2023
		Technogym S.p.A.			Technogym EE			Subsidiaries			Total
	Women	Men		Total Women	Men		Total Women	Men		Total Women	Men	Total
Interns and apprentices	8	12	20	0	0	0	3	2	5	11	14	25
Temporary workers	38	47	85	0	2	2	4	6	10	42	55	97
External staff (agents)	0	36	36	0	0	0	1	6	7	1	42	43
Total	46	95	141	0	2	2	8	14	22	54	111	165

41.

In Technogym S.p.A. temporary workers are mainly employed in the production area as assemblers, while in the subsidiaries they hold operational positions such as Customer Service and After Sales. These workers are used to cover and manage production peaks and to quickly replace back office operational roles.

Senior managers hired from the local community

[202-2]

Senior managers42 hired from the local43 community	FY 2021	FY 2022	FY 2023
No. of Senior Managers at the large operating sites 44 hired from the local community	31	37	34
Total number of Senior Managers	50	57	54
Percentage of Senior Managers at the large operating sites hired from the local community	62%	65%	63%

45.

42.

43.

44.

Key managers. (Italy).

Regions in which Technogym S.p.A. operates: Emilia-Romagna and Lombardy.

Cesena and Milan sites.

The remuneration values calculated on a full-time equivalent basis of Technogym S.p.A. employees are reported and compared. (key managers and whitecollar workers, excluding blue-collar workers) in force as at 31 December (2021, 2022, 2023). Remuneration values are expressed in euro and are gross values.

46.

The annual total ratio is calculated as the ratio of the annual total compensation of the organisation's highestpaid person to the median annual total compensation of all employees excluding the highest-paid individual.

47.

The remuneration values on a full-time equivalent basis of Technogym S.p.A. employees (managers and office staff, blue-collar workers) in post at 31 December (years 2021, 2022, 2023) are reported and compared. Remuneration values are expressed in euro and are gross values.

Remuneration⁴⁵

[2-21]

Annual total compensation ratio46	FY 2021	FY 2022	FY 2023
Annual total ratio	28.26	26.95	25.96

Annual total salary increase ratio	FY 2021	FY 2022	FY 2023
Percentage increase in the annual total salary of the highest-paid person in the organisation	0%	0%	0%
Median percentage increase in the annual total salaries of all employees (excluding the highest paid person)	0%	5%	4%
Annual total ratio	0	0	0
Remuneration for each professional category47	FY 2021	FY 2022	FY 2023
Ratio
Managers	0.79	0.84	0.79
Executives	0.88	0.92	0.92
White-collar	0.82	0.85	0.84
Blue-collar	0.93	0.93	0.93

The figures shown above are calculated as the ratio of the average remuneration of women to that of men for each professional category. The ratio for the key managers category decreased between 2022 and 2023, returning to its 2021 value. For the other categories, the ratio remains broadly unchanged.

2023 Consolidated Non-Financial Statement

PARENTAL LEAVE⁴⁸

[401-3]

Employees who were eligible for parental leave⁴⁹

Employees who took parental leave

Parental leave (optional leave) taken on a continuous basis.
Employees who had a child in the year under review and who therefore had the opportunity to take parental leave on a continuous basis.

*Gender as specified by the employee.

PARENTAL LEAVE⁵⁰ [401-3]

Employees who returned to work during the reporting period after taking parental leave

Employees who should have returned to work during the reporting period after taking parental leave

Parental leave (optional leave) taken on a continuous basis.

*Gender as specified by the employee.

Employees who have returned to work after taking parental leave and who are still employees of the organisation in the 12 months following their return

Employees who took parental leave

*Gender as specified by the employee.

Working 4 Wellness: wellbeing starts with us

Technogym has always made corporate wellness one of its cornerstones, promoting the physical and mental wellbeing of all its employees and supporting other brands in the development of corporate wellness programmes.

Above all, the wellness philosophy is a daily commitment we make to our colleagues: thanks to our working environment and T-Welfare, we put their quality of life and work at the centre of what we do every day.

Since 1993, we have put the wellbeing of people at the heart of our company philosophy, with a mission to spread the wellness culture around the world. There are now 55 million people globally who train with us every day in over 85,000 fitness centres and 400,000 homes. Above all, the wellness philosophy is a daily commitment we make to our colleagues: we are able to export this lifestyle around the world only because we believe in wellness and we want to be the first people to live it day in, day out, starting from our working environment. The working environment is where most of us spend a large part of the day. It has been proven that a working environment that is not only safe but comfortable, stimulating and optimised based on workers' needs contributes considerably to their mental and physical wellbeing.

From this point of view, the Technogym Village, opened in Cesena in 2012, is a unique example of wellbeing architecture. A concept dreamt up by Nerio Alessandri and Antonio Citterio, it is the first wellness campus in the world and an architectural representation of the company's

wellness philosophy. Mr Citterio was inspired by the concepts of sustainability and bioarchitecture to create an integrated wellbeing environment characterised by the successful fusion of elements such as light, atmosphere, sensations, colours and natural materials. The spaces have been designed on a human scale and to enable a whole series of activities to be carried out, going way beyond mere "production": the company's headquarters nowadays is a workplace, an industrial production plant, a meeting place, a training area and a wellbeing environment, all rolled into one.

We have implemented a corporate wellness programme within the Technogym Village in the interest of the health of all our employees. Our T-Welfare is the result of complementary action on three fronts, namely the three pillars of wellness: physical activity, healthy eating and a positive mental approach. Working 4 Wellness is our unique programme for employees' health that includes access to a cutting-edge gym and outdoor sports, choosing from a wide range of individual and group classes; free annual check-ups to assess the employee's health but also give them advice on how they can improve their physical and mental wellbeing; daily access to the T-Restaurant, the world's first wellness canteen, which offers a choice of three healthy menus every day based on the employee's dietary requirements. Our colleagues' health is also their families' health, which is why we love opening up to the outside world: our "Take Home" service lets employees pick up fresh, healthy meals from the canteen for their family to have at home in the evening. Relatives and friends of our employees are also welcome at our gym and in our outdoor spaces at the weekend or during some special events. When we talk about the working environment, we don't just mean the physical spaces; we also mean the wellbeing that comes from feeling at ease and spending time with others.

Nearly a decade after it was opened, the Technogym Village is still an innovative, peoplefocused workplace that acts as a benchmark for many firms who visit our campus every year in search of inspiration. The company has been recognised worldwide, by the media and through major awards, including "Best Place to Work", as a benchmark for the quality of its working environments and services for employees.

While Technogym is primarily committed to promoting the wellness of its employees, another of the brand's key areas of action is to provide

WORKING FOR WELLNESS IS OUR UNIQUE EMPLOYEE HEALTH PROGRAMME

Above all, the Wellness philosophy is a daily commitment we make to our colleagues

TECHNOGYM VILLAGE IS AN INNOVATIVE, PEOPLE-FOCUSED WORKPLACE THAT ACTS AS A BENCHMARK FOR MANY FIRMS WHO VISIT OUR CAMPUS EVERY YEAR TO LOOK FOR INSPIRATION

corporate wellness programmes to companies around the world (both national and multinational). To this end, Technogym is dedicated to structuring and managing all-round corporate wellness programmes, which, in addition to the product, provide a real support and assistance service, made possible by the company's 40 years of expertise.

The latest development in the corporate wellness project is Technogym Corporate Club, Technogym's digital platform dedicated wholly to corporate wellness. Technogym Corporate Club takes advantage of the features and premium content of the Technogym app and develops in synergy with the Technogym Ecosystem, the connected ecosystem that allows companies to offer their employees a vast library of training content to provide a fluid and extensive wellness experience.

Some of the industrial, financial, technology,

fashion and medical-pharmaceutical giants that already rely on Technogym to ensure that the wellness of their employees is in safe hands include Goldman Sachs, JP Morgan, Morgan Stanley, Ferrari, Apple, Google, Microsoft, Meta, Armani, Gucci, Bottega Veneta, Bosch, Vodafone, Cisco, Unilever, P&G, SAP, Salesforce, GlaxoSmithKline, Abbott and Novo Nordisk, Medtronic, to name but a few.

Technogym People: the importance of people

The success of a company depends on its ability to invest in skills, ideas and experience. Or to put it another way, people. At Technogym, we invest in ongoing training and personal development because we believe strongly that it is important to have a motivated team.

In a globalised, competitive market, the success of a company depends on its ability to attract talent. To be an industry leader, you have to invest in skills, ideas and experience. Or to put it another way, people. That is why today's businesses invest a lot of resources in implementing corporate policies that make them an attractive place to work, particularly in the eyes of young talent and qualified professionals. Since the 1990s, companies have invested in employer branding strategies to build a reputation as an ideal place for potential candidates to come and work. But what makes a company the ideal place for a young person fresh on the job market or a professional hoping to develop? Extensive research has found that the ideal company must tick boxes in all the following areas: working environment, welfare, opportunities for professional growth, ongoing training, the chance to take part in innovative projects and internationalisation. At Technogym, we have always paid a lot of attention to these areas because we believe in teamwork and in the importance of having a motivated group characterised by a strong sense of belonging.

In 2023, the group's workforce grew to over 2,300. We receive more than 10,000 CVs every year, which is testament to the attractiveness of the business. But the relationship of trust with an employee is renewed on a daily basis and requires constant attention. The Technogym Village is a unique workplace from this point of view, not only because of its innovative and sustainable architecture, but also because of its role as hub of ideas, information and cross-departmental expertise. The Village

is in constant talks with the most prestigious universities and research centres, and it is the home of innovation on a daily basis thanks to meetings with industry professionals, athletes, doctors, physios, architects and specialists in many other fields. Scientific research, product development and training are the three pillars on which Technogym has built and consolidated a new concept over the years, the concept of Open Innovation as a model for growth and a means for meeting the challenges of modern-day life.

The second key to developing individual skills and consolidating group values is ongoing training. This is why the Technogym University organises crosscutting training programmes aimed at developing soft skills or new expertise and information sessions on the Technogym culture, open to all staff. Alongside this offer is a structured annual training plan, which is drawn up each year together with Human Resources, setting out the overall training priorities and focusing on the training needs of the employees that emerged during the annual appraisals. Training is delivered in various forms, including on-the-job training (so that employees can learn through projects and new, challenging activities), continuous feedback, coaching and mentoring, and classes and seminars.

It is important to keep a new employee motivated. And that brings us to the third key word: mobility. A business must know how to communicate a vision of continuous personal and professional development. At Technogym, we have developed an annual appraisal process that enables us to identify and implement training and development activities in order to improve performance, behaviours and technical expertise, and to select the resources in which to invest by way of individual development plans. To ensure that key positions are covered, succession plans are drawn up every year and used as the basis for individual career paths: in 2022, these involved an increasing number of employees across all areas of the business. The same is true outside Italy. We are a business with an international mindset, with a presence in over 150 countries and we encourage the development of international induction courses for our staff. What unites us and makes us a great team is a passion for wellness and the desire to spread this philosophy around the world, which is why, above all, joining Technogym means signing up to our mission of creating a better world.

2023 Consolidated Non-Financial Statement

TO BE AN INDUSTRY LEADER YOU HAVE TO INVEST IN SKILLS, IDEAS AND EXPERIENCE. OR TO PUT IT ANOTHER WAY: PEOPLE

TECHNOGYM UNIVERSITY ORGANISES CROSS-CUTTING TRAINING PROGRAMMES AIMED AT DEVELOPING NEW SKILLS

Technogym University is our internal training academy, created to offer training programmes of excellence to Technogym employees at various levels in the organisation: from managerial training to technical product training and the various disciplines connected with the company's areas of activities.

Technogym University today aims to develop specific and cross-cutting skills in people thanks to its extensive programme of courses. Training is delivered in a blended way, including inperson courses, e-learning and webinars. These are provided using the dedicated spaces in the Technogym Village and our Campus, and with the support of a variety of cutting-edge tools and technologies.

Technogym University offers a training catalogue, training on reskilling and upskilling in line with company strategies, individual career development paths, programmes devoted to talents, the Scuola dei Mestieri (Skills School) and the T-Factory Catalogue dedicated to the production departments.

THE SUPPLY CHAIN 8

8 The supply chain

SNAPSHOT OF THE SUPPLY CHAIN 8.1

"To ensure the constant improvement and steady growth of its relationship with suppliers, Technogym has defined its reference values and specific policies for developing its supplier base"

The Group has always been committed to developing innovative, high-performance quality solutions. To continue this commitment, a close collaboration needs to be maintained with suppliers, particularly those who produce materials and technologies suitable for use in the fitness industry, even if they primarily operate in other sectors.

The fitness industry does not have its own production chain and frequently uses suppliers who mainly manufacture goods for other sectors. This means that materials and technologies need to be adapted to the requirements of fitness products.

In this context, Technogym has adopted an approach to supply chain management that favours continuous, two-way learning in order to constantly fulfil the new market demands. This means that long-term relationships need to be forged, particularly with suppliers of high-tech components, who make up a supply chain that is largely stable.

The following information relates to all purchases of supplies for Technogym S.p.A. (Headquarters and Italian plant) and Technogym EE S.r.o. (Slovakian plant), consisting entirely of raw materials and components necessary for manufacturing products.

Technogym's supply chain is divided into suppliers who provide "bill of materials" supplies, some of which are particularly strategic to Technogym's success, including those that contribute directly to product creation, and "indirect" suppliers who provide other services or materials, as well as the equipment used in production.

In 2023, purchases for production operations alone totalled €348,853,812.

In addition, Technogym S.p.A. and Technogym EE S.r.o. used a total of 1,007 ⁵¹ providers. In 2023, suppliers for almost all product categories. Increased slightly.

	2021	2022	2023
Total purchases for production activity (Euro)	282,617,209	335,984,857	348,853,812

51.

This number relates to the suppliers who generated sales of at least €10,000 with Technogym in the year under review. The top 100 suppliers account for around 80% of the total purchases.

14%

10%

Purchases from the Rest of the World

The supply chain is mainly based in Italy, where, in 2023, 86% of suppliers have a registered office. The remaining purchases are distributed across Europe (6%) and the rest of the world (almost 8%).

In Italy, Technogym mainly works with small and medium enterprises (SMEs) and local businesses ⁵³; in some cases it works with multinationals but most of them are still based in Italy. This allows us to work with companies operating in a heavily regulated, controlled environment, and to have frequent, direct contact with our suppliers, who ensure quality of work, respect for people and the protection of workplaces. Having said that, as mentioned in the Sustainability Policy, the Group encourages entrepreneurial spirit and expertise along the supply chain, encouraging local and regional development while complying with and upholding workers' and human rights.

Lastly, there are no labour-intensive operations in the Technogym supply chain. Technological advances over the years, and the forging of long-term relations, have also enabled suppliers to make investments designed to automate potentially important processes (for example, automated welding instead of manual welding).

SELECTION OF MATERIALS 8.2

Attention and care in the selection of materials is a very important part of the corporate sustainability policy. Technogym uses raw materials of different types and from multiple industrial sectors: the identification of environmental and social risks and impacts is a necessary step to manage the supply chain responsibly. Surveying and evaluating suppliers are the main monitoring tools with which the company expresses its ethical and responsible commitment at an economic, environmental and social level.

By designing its products in-house, Technogym adopts an autonomous approach, combining internal management with an awareness of global dynamics and thus demonstrating an ethical and responsible commitment at an economic, environmental and social level. The two key steps of Technogym's approach are the initial design and final definition of the products. The intermediate phase, however, namely production, is outsourced to leading processing companies in the technological and industrial sector.

Technogym's objective is to rely on responsible partners and suppliers, encouraging them to adopt the most up-to-date process solutions, which comply with the highest and most rigorous standards. It also prefers to enter partnerships with companies that comply with the sustainability certifications relating to the industrial area in question.

At the two plants in Cesena and Malý Krtíš (Slovakia) Technogym mainly manages the internal industrial processes. These processes, which include, for example, metalwork, painting, assembly, 100% testing, packaging, reflect the ideas defined and developed in the design phase.

Another fundamental aspect of supplier selection is the policy not to directly import minerals from areas affected by conflict.

Raw materials and production processes

Technogym attaches great importance to the materials used in its products, which is central to the company's sustainability policy. In addition to meeting the highest industry standards, given the wide spectrum of raw materials purchased and used, the company uses a global research system, relying on over 800 suppliers located in various regions around the world.

The term "local" indicates that the companies are based in Italy.

Suppliers by product category ⁵⁴ 911 934 1,007 54. Suppliers with an amount of over €10,000.

	2021	2022	2023
Total suppliers in category 1 (Metal Structures)	40	34	45
Total number of suppliers for category 2 (Machining)	90	58	95
Total suppliers in category 3 (Upholstery)	37	27	59
Total suppliers in category 4 Custom electronics	26	25	37
Total suppliers in category 5 (Plastics)	78	55	84
Total suppliers in category 6 Electromechanics/wiring/motors	47	33	39
Total suppliers in category 7 Powder coating	7	7	7
Total suppliers in category 8 Other 55	586	695	641

Purchases by product category ⁵⁶

Suppliers with an amount of over €10,000.

Total (euro)

2021 2022 2022 Total turnover for category 1 Metal Structures 61,421,368.60 80,567,387.20 81,366,311.58 Total turnover for category 2 Machining 35,617,551.13 26,990,204.51 32,928,186.50 Total turnover for category 3 Upholstery 15,429,039.77 17,821,219.93 23,869,840.78 Total turnover for category 4 Custom electronics 41,342,309.88 48,365,372.72 52,442,043.80 Total turnover for category 5 Plastics 41,871,343.09 40,999,131.81 45,959,362.12 Total turnover for category 6 Electromechanics/wiring/motors 15,265,266.81 13,113,596.49 13,535,780.19 Total turnover for category 7 Powder coating 4,174,010.62 5,462,953.92 5,628,461.29 Total turnover for category 8 Other ⁵⁵ 64,840,849.05 99,851,230.65 90,386,831.15

55.

As mentioned in the 2019 Non-Financial Statement, the process of reclassifying some of the product categories improved and streamlined control along the supply chain, making it clearer and more representative of the Group's core business: suppliers of products pertaining to pre-assembled mechanical units have been included in category 2 "Machining" (they were previously in category 1). Suppliers of custom electronics, electromechanical items, wiring and motors have been reclassified. Suppliers who were previously classified under product category 4, apart from specific products for custom electronics, have been grouped in product category 6, renamed "Electromechanical items, wiring and motors". The suppliers in category 6 Adhesives have been reclassified under category 5 Plastics.

346,116,816.41

The categories of raw materials purchased by Technogym include the following areas:

› FERROUS METALS: these are mainly carbon steel, stainless steels and all their derivatives. It is the most recycled material in the world, with an average of about 14 tons per second. 100% of the scrap steel is recycled without the loss of any property, contributing directly and indirectly to the conservation of natural resources. On this issue, Italy is the number one European country for the recycling of ferrous scrap metal.
› NON-FERROUS METALS: the category includes aluminium, copper cables, special metals. Copper and aluminium are eco-sustainable materials given the numerous advantages in terms of performance and environmental sustainability, and offer good durability. They can be completely recycled, recovered and reused once they come to the end of their life.
› PLASTIC MOULDED COMPONENTS: polycarbonate, polypropylene, ABS, nylon. These materials must have clear sustainability credentials, coming from a supply chain that ensures renewability and recycling. Nylon can also be recycled and reused up to seven times, ABS is easily recyclable if not contaminated by other types of non-compatible plastics, polycarbonates and polypropylene are highly recyclable.
› SOFT MATERIALS: fabrics, TNT, leather, imitation leather, rubber. Also in this case, the company policy provides for the choice of materials from recyclable and reusable sources, reducing the impact of production and relying on qualified and certified suppliers.

› WOOD COMPONENTS OR DERIVATIVES

› COMPONENTS FOR THE PACKAGING OF FINISHED PRODUCTS: corrugated cardboard, expanded or extruded polyethylene, plastic straps, wooden pallets.

The raw materials purchased from Technogym are subsequently put through the following production processes:

› electro-welding
› aluminium alloy castings and die castings
› mechanical processing
› aluminium extrusion
› mechanical assembly
› surface and heat treatments
› coatings
› moulding of plastics: thermoplastic injection, casting, compression
› thermoforming

Technogym's commitment to the choice of materials

Technogym's actions over the past decade have delivered on the company's commitment to material sustainability. Technogym has adopted a well-defined strategy, focusing on key aspects and setting medium- and long-term goals.

Specifically, it has focused its attention on:

› increased standardisation of products Using standard products on a large scale makes it possible to reduce consumption and hence impact, with efficiency gains in terms of economic resources;
› identifying opportunities to introduce materials that have an increasing percentage of recycled raw material. The increase in the use of recycled raw materials certified by

third parties has an impact on corporate sustainability.

› location of supplies. Reducing the distance between the supplier and the company helps reduce the environmental impact and increase sustainability, by reducing the amount of CO2 produced in transporting the supplies;
› identifying process solutions with a reduced environmental impact. A route that involves taking intermediate steps until the best possible solution for the company's economic needs and sustainability is achieved.

In recent years,Technogym has taken the necessary steps to increase the sustainability of the company and its products in order to advance rapidly into the future and support it with effective policies. The plan for the incorporation of recycled plastics, which integrates plastics of non-recycled origin (which are nevertheless necessary in the production process) fits into this context. Other initiatives include the exclusive use of recycled aluminium parts, the use of 80% water-based liquid coatings, the purchase of paper and cardboard packaging material that is 100% certified by the FSC (Forest Stewardship Council®) and PEFC wood packaging (which guarantees the use of certified paper made with cellulose or wood from forests managed in a fair and eco-sustainable way, from an environmental as well as an economic and social point of view).

The wide range of raw materials used inevitably involves the search for suppliers who contribute, through the certification of third-party companies, to the achievement of climate neutrality in the next few years. The calculation of the product's carbon footprint is based on the quantification of all greenhouse gas emissions throughout the product's life cycle: from the extraction of resources and raw materials to the last step of disposal once the life cycle is completed. This is a priority goal for Technogym via the reduction of its own and its suppliers' emissions, as well as by offsetting the CO2 produced in the industrial process.

As part of the path taken by Technogym, both its past and present choices have value, especially if they are included in a development framework for the future. The actions taken to check suppliers, which have the role of ensuring that the required standards are met, fit into this context. Another key aspect in the future will be the choice of supplies of fabrics and leathers that have a percentage of recycled material certified by TE (Textile exchange) and painting with a low temperature firing process.

Technogym decided to launch a structured ESG audit process on the supply chain to ensure consistency between the sustainable development strategies of its suppliers. Being sustainable does not only mean taking into account our work and our supplies, but understanding, via continuous and systematic interviews with suppliers, whether Technogym's vision corresponds to that of its stakeholders and suppliers and vice versa. It is not the company that is sustainable but the entire ecosystem that revolves around it. The methodology for carrying out audits (rating and sampling), development progress and coverage of suppliers will also be ensured. A rewarding method for implementing production processes will be promoted as a stimulus for eco-friendly technological development, along with the sharing of the supplier's ESG performance within the company to guide strategic choices.

The control and monitoring system for components and semi-finished products will require:

› a self-declaration for the supply of aluminium, ferrous materials;
› direct second party verification for the supply of plastic;
› third-party certification for fabrics and leathers (TE) and wood (FSC, PEFC).

CONTROL OF THE SUPPLY CHAIN 8.3

Supplier relationships is a strategic element. This is why Technogym uses selection and monitoring tools to control its supply chain, and also rates suppliers' performance to ensure they comply with current environmental and social legislation. [DMA 204]

Supplier selection and key contractual terms

Technogym's supplier selection and outsourcing process takes into account the company's directives and the applicable public tender procedures in accordance with current legislation. Selecting a supplier is a key process for achieving the Group's excellence targets. At the heart of the analysis are the technical and functional requirements, which are defined at the product development phase by the relevant departments.

The process of selecting a new supplier, which is regulated by the "Supplier Qualification

CONTROL TOOLS

Code of Ethnics
231 Model
"Supply management" procedure
Procedure for the "Management of obligations related to works and temporary contracts, and temporary mobile sites"
Procedure for "Supplier Qualification and Rating"
Procedure for the "Qualification of manufacturing and production approval processes"
ESG assessment.

and Rating procedure", includes a two-phase supply chain quality assessment.

Following the signing of a Non-Disclosure Agreement (NDA), the process to carry out a supply assessment is started. In the latter part of 2023, the assessment was reconfigured into two specific phases.

The initial assessment involves an analysis of the supplier's process. The quality and technical capability of the product is examined, considering, among other things, financial stability criteria, type of product supplied, checks carried out, available technologies, characteristics of the in-house R&D department responsible for designing specific components.

Subsequently, an analysis is carried out which has the sole aim of evaluating the maturity, safeguards and performance of the supplier in relation to ESG issues. The ESG Assessment was carried out on the basis of the Supplier Code of Conduct and will explore and verify the following issues.

	RESPECT FOR THE ENVIRONMENT AND SUSTAINABILITY	SUPPLIER TRANSPARENCY AND GOVERNANCE
› Child and forced labour	› Legislative compliance	› Traceability and data management	› Anti-corruption, conflict of interests
› Prohibition of	› Deforestation and		and anti
discrimination, equal opportunities, diversity	biodiversity	› Effective governance and business management	competitiveness
and inclusion	› Water conservation and management
› Fair pay and working
hours	› Waste management
› Health and safety in the workplace	› Chemical management
	› Energy efficiency and reduction of GHG emissions
	› Sustainable materials

The two types of analysis mentioned above will be carried out from 2024 on new suppliers and those that are already operational. The results of ESG assessments will be recorded on the Vendor Rating Portal.

Approved suppliers will be asked to sign a Quality Agreement and the General Conditions of Purchase (GCP), which will define the content of their contract. Suppliers are asked to

share Technogym's commitment to maintaining a socially responsible approach to workers, child labour, forced labour, health and safety, freedom of association, discrimination, working hours and pay.

In 2023, the Supplier Code of Conduct was drawn up, based on Technogym's Code of Ethics. The document, which will be approved in early 2024 will be delivered to the suppliers and, once signed, will be saved in the Vendor Rating Portal.

In addition, where necessary, suppliers are also asked to accept the REACH and RoHS standards, which ensure a higher level of protection for health and the environment, limiting the use of chemical substances in the production process and reducing the related risk.

With the REACH Directive, it is possible to obtain additional and more comprehensive information on the hazardous properties of products handled, the risks related to explosion, and the safety measures to adopt, while the RoHS Directive establishes restrictions on the use of certain hazardous substances in the manufacture of various types of electrical and electronic equipment. In addition, as also indicated in the chemical risk policy, approved in 2021, the procedure involves supplier audits using a checklist that takes into account aspects related to quality, environmental impact, workplace health and safety, the use of chemical substances and respect for human rights.

Monitoring of supplier relationships

The management of supplier relationships requires constant monitoring of performance. The tool used to support this process is the online portal GSC, which contains and manages all the vendor rating information.

The portal keeps an up-to-date record of every company in the supplier base (for example, details of their financial performance and the results of the ESG Assessment), as well as details of the relationship between each company and Technogym (delivery times, supply quality etc.). This data allows the system to give a brief assessment of each supplier and to monitor their performance.

Suppliers themselves can access the portal and see their own ratings so that they have constant feedback on the perceived quality and services they offer. [DMA 308; 414]

Technogym also deploys a system of periodic site audits to monitor supplier performance. These audits will cover:

› monitoring of suppliers' operations;
› checking on the continued existence of specific operational requirements;
› reporting any actual or potential discrepancies compared to environmental and social regulations, and the specific requirements imposed by the organisation;
› defining corrective actions to prevent any actual or potential discrepancies from reoccurring;
› tracking all supplier performance monitoring activities.

By carrying out site assessments, Technogym can also specifically evaluate:

› social aspects relating to working conditions, any instances of child labour, salubriousness of the workplace (lighting, cleanliness, etc.), freedom of association, the right to collective bargaining, discrimination, individual health and safety;
› environmental aspects: protecting the environment in relation to atmospheric emissions, waste water, contamination of soil, waste management.

The Group also audits the suppliers' management systems such as ISO 9001, ISO 14001, ISO 45001, AITF 16949 (formerly ISO/TS 16949) and SA 8000, ISO 13485 Medical. In 2023,

The percentage is subject to annual changes related to the increase or decrease in the total number of suppliers. 20% of all suppliers were ISO 9001 ⁵⁷ certified. In Italy, where most suppliers are located, approximately 19% had ISO 9001 certification and over 5% ISO 14001 certification in 2023. In addition, 29 suppliers in Italy have adopted ISO 45001 certification and seven are SA 8000-certified.

Requesting certifications is an integral part of the global supplier assessment (part of the vendor rating system). In this way the Group can raise suppliers' awareness and encourage them to focus at all times on socio-economic issues, while supporting them on their pathway of continuous improvement.

In terms of the environmental and social impact, as the overwhelming majority of purchases come from companies based in Italy or Europe, our suppliers operate in a context that is heavily regulated and requires specific administration in managing these aspects.

Among other things, suppliers need to comply with the regulations in force in their own countries with regard to minimum pay, hours of work, payment of overtime, freedom of association and anti-discrimination policies.

As part of this process, 100% of new suppliers have been assessed taking into account their environmental and social impacts. In 2023, 15 audits were carried out and the findings did not reveal any negative environmental or social impacts.

[308-1; 308-2; 414-1; 414-2]

The supply chain 205

ENVIRONMENT

9 Environment ⁵⁸

[ART. 3 (2 A) ITALIAN LEGISLATIVE DECREE 254/16 – USE OF ENERGY RESOURCES; ART. 3 (2) ITALIAN LEGISLATIVE DECREE 254/16B – GREENHOUSE GAS EMISSIONS]

"The wellbeing of the population and the planet go hand in hand. In line with its mission of bringing wellness to the world, Technogym prioritises the health of our planet by selecting systems and behaviours that protect the environment and its natural resources".

In line with its wellness philosophy linked to the promotion of wellbeing, Technogym is continually committed to reducing its impact on the environment, which is an inextricable condition for ensuring people's health and quality of life. The Group primarily impacts the environment through its production operations. The plant in Cesena assembles components produced by suppliers, while the site at Malý Krtíš (Slovakia) produces most of the machine components in-house and also has its own welding and coating departments. The Group's other sites carry out service and commercial activities. The 231 Model identifies "sensitive" activities for the purposes of environmental regulatory compliance. These activities include waste production and disposal procedures, the management of systems that generate atmospheric emissions and waste water, the management of chemicals and fuels that could lead to land, subsoil or water contamination. ⁵⁹. To consolidate its monitoring and control system of significant environmental impacts with a view to preventing risks and continuously improving performance, in 2003, Technogym S.p.A. adopted an Environmental Management System certified according to ISO 14001, which covers all the company's activities. Since 2015, Technogym EE has held ISO 14001 certification for its operations in Slovakia ⁶⁰.

In 2018 Technogym set up an Integrated Management System, which includes certification to ISO 9001, ISO 14001, ISO 45001, ISO 50001 and ISO 13485. By defining a formal Environmental Policy, the System provides a framework for setting and reaching targets on quality, health and safety, and energy and environmental efficiency. It also represents our concrete commitment to pursuing sustainability by measuring and preventing risk. In view of the above, as mentioned in the preceding chapters, in 2021 Technogym redoubled its commitment to the management of chemical substances and preparations by way of a dedicated policy aimed at continually monitoring matters pertaining to the health and safety and environmental impacts of using chemicals in operations and along the entire value chain.

One of the fundamental cornerstones of Technogym's sustainability strategy is to constantly pursue Responsible Innovation and Design ⁶¹. This commitment, in addition to the focus on chemical risk, includes numerous actions, such as the promotion of sustainable industrial practices on the path towards decarbonisation and the design of low-energy products. Consideration is also given to initiatives relating to the adoption of the principles of the circular economy, the increase in second-life products reintroduced on the market, actions to combat climate change and energy efficiency (such as replacing lighting fixtures with more efficient alternatives, which was implemented in 2023).

For the purposes of the information in this chapter, the perimeter includes Technogym S.p.A. and Technogym EE. For Technogym S.p.A., this refers only to the consumption for the Technogym Village, which includes the Italian head office and the Cesena production site. Consumption of all subsidiaries (including the Italian branch) has not been included.

59.

The Technogym Group does not use chemical substances in the phase-in and phaseout process. As stated in the chapter on the supply chain, Technogym requires its suppliers to comply with the REACH and RoHS Directives.

The UK subsidiary also has ISO 9001, ISO 14001 and ISO 45001 certifications.
For more information, see Chapter 2. Sustainability at Technogym.

62.

Scope 1 emissions are direct emissions of greenhouse gases that come from sources that are owned or controlled by the company. For example, the amount of CO2 -equivalent produced from the combustion of natural gas used by the organisation falls under Scope 1 emissions. Scope 2 emissions refer to indirect greenhouse gas emissions resulting from the generation of electricity or thermal energy purchased by the company.

63.

Scope 3 emissions are the indirect emissions caused by the company's upstream and downstream activities, which are not covered by Scope 2. For example, emissions generated by the transport or use of products must be considered in this category.

In line with ESMA's recommendations in October 2023, although "climate change" is not a material topic for Technogym for the financial year under review, the company is committed to providing an increasingly accurate and comprehensive disclosure of its consumption and CO2 emissions, following the provisions of the GHG Protocol. As well as calculating Scope 1 and 2 emissions ⁶², it is proposed to calculate an estimate of Scope 3 emissions ⁶³ on a significant sample of suppliers. Turning to the monitoring of environment-related risks, Technogym carried out an initial double materiality exercise that also takes into account environmental risks and opportunities, and in particular those that are climate-related (the analysis was carried out in line with the guidelines of the Task Force on Climate-Related Financial Disclosures).

9.1 ENERGY CONSUMPTION

[DMA 302; 305]

The energy consumed by Technogym S.p.A. is only for heating, air conditioning, lighting and the running of electronic equipment. Although not classified as an energy-intensive company, Technogym S.p.A. has always been committed to energy saving initiatives. It conducted three energy diagnosis exercises in 2015, 2018 and 2022. In addition, the procedure for the adoption of ISO 50001 was also completed in 2018. However, Technogym East Europe, because of its production operations and following the energy diagnosis carried out in 2018, is classified as an energy-intensive company.

CONTROL TOOLS

Code of Ethnics

Integrated Environmental, Quality and Management Systems Policy ISO 9001, ISO 14001, ISO 45001 and ISO 50001

231 Model

As evidence of the Group's commitment to protecting the environment, the Technogym Village, which is home to the company's headquarters, was built in 2012 based on principles of bioarchitecture, which have enabled Technogym S.p.A. to obtain Energy Efficiency Certificates (EECs). The plant is north-facing and this allows it to exploit the natural thermal exchange, making the environment warmer in the winter and cooler in the summer months. The construction materials chosen provide a high level of thermal insulation, and the system of opening large windows in cooler hours reduces energy consumption.

The whole site is managed by a building energy management system, which controls all the energy consumption points in order to continuously improve the energy performance of the Technogym Village. As the system is fully automated, it can provide instant and historic data. The constant analysis of the consumption data supports efficient energy purchasing policies and the reduction of consumption.

The Group's strong growth is requiring greater efficiency in its processes and consumption. This is why the company regularly controls and monitors consumption, by implementing analysis and reduction projects. In 2023, the offices and production spaces of the Technogym Village underwent an extensive lighting relamping process. The initiative improves the energy efficiency of spaces, thereby reducing CO2 -equivalent emissions (estimated at an annual reduction of nearly 60% of greenhouse gas emissions on average).

The company's commitment to energy efficiency and the optimisation of energy quality led to the decision by Technogym S.p.A. to install a power quality improvement system in September 2021. The installation of the E-Power system, a hybrid passive inductive filter, made it possible to maximise the efficiency of the plant in terms of inductance level, reducing losses and disturbances. Important initiatives in recent years include transferring the warehouse for finished products manufactured at the Slovakian site from Portobuffolè (Treviso) to Malý Krtíš. This operation made it possible to improve and streamline logistics with positive effects on transport and distribution management. In particular, it was possible to eliminate the transport by articulated lorry of some 60,000 finished products manufactured in Slovakia to the Italian warehouse at Treviso, around 700 km away, with an average 3,000 journeys avoided (totalling 2,100,000 km), saving approximately 700,000 litres of diesel fuel, equal to the equivalent of 1,820.7 tonnes of CO2 generated.

Direct and indirect energy consumption (GJ) ⁶⁴

Overall, Technogym S.p.A.'s energy intensity has remained constant over the three years (6.79 in 2023). The Slovakian plant recorded a decrease in energy consumption against an increase in hours worked, obtaining an energy intensity of 26.33. This figure is the ratio between the overall energy consumption, equal to approximately 10.3 million kWh for Technogym S.p.A. and 12.5 million kWh for Technogym EE, and the hours worked. During 2023, the Slovakian plant recorded a continuous recovery in production compared with 2021, posting an increase of around 26%.

Owing to a malfunction of the supplier's digital meter, the figures relating to methane consumption for December 2023 have been estimated (the proportions are approximately half those of December 2022). Detailed information on the types of energy included in the calculation is shown in the attached tables.

64.

Energy intensity for Technogym S.p.A.

	Unit of measurement	2021	2022	2023
Energy intensity		6.80	6.53	6.79
Energy consumption 65	kWh	10,083,987.77	9,875,009.40	10,348,218.99
Total hours worked		1,483,371.05	1,512,345.50	1,524,014.00

The energy consumption figure in both tables was obtained from the sum of direct and indirect consumption. Detailed information on the types of energy included in the calculation is shown in the attached tables.

Energy intensity for Technogym EE

	Unit of measurement	2021	2022	2023
Energy intensity		34.64	29.75	26.33
Energy consumption 65	kWh	13,076,308.95	12,496,240.88	12,528,274.67
Total standard hours worked 66		377,517.00	422,602.00	475,866

Because of the different nature of the activities carried out by Technogym S.p.A. and Slovakia, the energy intensity for Technogym Slovakia was calculated for the three-year period, considering the number of standard hours and not the hours worked. Therefore, the figures between Italy and Slovakia are not comparable.

With regard to the activities to mitigate consumption mentioned above, initiatives are under way in both sites to reduce energy consumption through the installation of LED lights, which have at least the same functional features as the previous ones, with reduced consumption, as well as activities to reduce waste.

Actions to reduce impacts are also planned for the fleet of vehicles, by encouraging less polluting fuels. In 2023, out of a total of 117 company cars, 4 ran on methane; three electric cars were also introduced.

Logistics system

Technogym has a very detailed logistics structure that enables supply of the various component transportation channels from the suppliers to the company and of the finished products from the factories to the customers, wherever in the world they may be.

Technogym uses a network made up of the main players for the management of all inbound and outbound logistics activities. For imports and exports, goods are transported by land in Europe and by sea or air for intercontinental deliveries. Technogym has always been committed to developing logistics solutions that can ensure operational efficiency and compliance with delivery times, thereby ensuring high-quality logistics processes. In particular, exports are shipped to the warehouses of branches near the customer, and the machines are then sent on to the customer from there.

The distribution network also contains the distributors over which Technogym has no direct control because delivery is Ex Works. For this reason, only emissions for which the Group is directly responsible are included in the CO2 calculation. Moreover, only the most important suppliers have been considered. Taking into account emissions across the entire logistics system, there were 120,209.57 tonnes of CO2 -equivalent emissions in 2023. Tonnes of CO2 -equivalent reported for 2023 are not comparable with the figures reported in previous years as the sample of suppliers analysed decreased in number.

Inbound and outbound logistics ⁶⁷

Type of transport (tonnes of CO2 -equivalent)	2021	2022	2023
Air	1,617.70	1,970.92	383.14
Road	116,765.70	129,675.66	118,966.46
Sea	4,316.78	2,256.06	859.97
Rail	0.00	5.92	0.00
Total	122,700.18	133,908.56	120,209.57

9.2

were used.

67.

CO2

The 2023 figures represent emissions from seven key suppliers (nine were considered in 2022). For calculating the tonnes of

eq in 2023, the most up-to-date conversion factors from the Department for Environment Food & Rural Affairs (DEFRA), January 2023,

WATER CONSUMPTION

[303-1, 303-2, 303-3]

CONTROL

TOOLS

Integrated Environmental, Quality and Management Systems Policy ISO 9001, ISO 14001, ISO 45001 and ISO 50001

231 Model

Because of the type of activity carried out at the Technogym Village, its water consumption is not significant. In Italy, the production process does not require the use of water as it only has assembly lines and most of the water consumption is for civil use and the irrigation of the Technogym Village.

Drinking water comes from the mains, while the irrigation system for the Technogym Village grounds uses irrigation water supplied by the Consorzio Bonifica of Romagna. To prevent possible reductions in the flow rate of the Emilia-Romagnolo Canal (with direct withdrawal from

the River Po), which supplies water, via the Consorzio Bonifica agricultural consortium of Romagna, to irrigate the grounds of the Technogym Village, in August 2022 a water supply

Code of Ethnics

Water withdrawal by source ⁶⁸

^68.

The supply area for Technogym S.p.A. is considered to have high water stress. Technogym EE is located in a low risk area (Source: WRI Aqueduct 2019). Water stress refers to the ability or inability to meet human and environmental demand for water. For Technogym S.p.A. the water withdrawal refers to fresh water (≤1,000 mg/l of total dissolved solids). With reference to Technogym EE, the water withdrawal consists of drinking water for human consumption and groundwater required for the coating technology.

Environment 213

system was activated from the Cesena purifier to reduce the use of water from the Emiliano-Romagnolo Canal (to be used exclusively to irrigate farmland).

The environmental impacts associated with water resources are mainly related to the use of water for sanitary uses, for which consumption depends on the people present in the Technogym Village, such as employees and guests, the weather conditions affecting the air conditioning system used during the summer and the amount of water needed to irrigate the grounds of the Technogym Village. In order to minimise water waste, Technogym has arranged specific activities, including the daily monitoring of any leaks and service inefficiencies; remote checks of the sanitary and irrigation facilities; regular checks of the irrigation facilities; daily checks of leaks and malfunctions of irrigation facilities with visual checks; changes to irrigation programmes to optimise water consumption; and lastly, monitoring of consumption by means of regular meter readings. In terms of managing industrial discharge, Technogym complies with all the standards contained in the AUA (Autorizzazione Unica Ambientale, Integrated Environmental Authorisation) requirements. The Slovakian plant uses water for the coating system and tests all the water flowing in and out of the site. Under an agreement with the local Slovakian authorities, Technogym returns the wastewater to the local authorities. By carefully managing its water resources, Technogym discharges water with a low level of emissions and polluting substances, which helps the authorities to purify and drain it in accordance with the legal parameters.

The management of water resources and of the impacts associated with its discharge are governed by Slovakian Law 364/2004, which provides for surface water quality monitoring processes for developing sustainability and protection policies that become the basis of preparing drainage basin management plans. The process begun at the Slovakian plant helps to identify and assess the impacts associated with water resources and makes provision for special analysis to be performed on groundwater pollutants at an accredited laboratory. Moreover, with a view to managing water sustainably, a special procedure is planned to be adopted for issues linked to waste management, water and health and safety, a procedure that governs relationships between local and foreign suppliers and Technogym EE. The changes in consumption of drinking water at the Technogym Village for Technogym S.p.A. mainly refer to facilities for employees and guests and the use of the gym and showers, while the use of irrigation water is affected by changes in climate factors. In 2017, Technogym EE installed a heat pump, which reuses hot water, and has cut the consumption of water withdrawn from wells by almost half.

In addition, since 2019, as a result of discontinuing the use of water to cool washing during the coating process, the Slovakian plant has been more efficient in managing its withdrawal of groundwater. In 2022, a programme to replace the taps at the Slovakian plant was started to help reduce the consumption of water for sanitary facilities.

Total water withdrawal in 2023 was 91,093 million litres, of which 91.46% was attributable to Technogym S.p.A. Nearly all came from third-party water resources. Of the total water consumed, 78.41% was destined for irrigation and the rest for the gym and other services.

At Technogym EE, 5,131 million litres came from third-party water resources and 2,662 million litres from groundwater.

WASTE MANAGEMENT69 [DMA 306] 9.3

The figures in the document do not include waste collected and disposed of in common areas as this is managed by municipal bodies or other suppliers. The waste figures were calculated taking into account the digital loading and unloading register.

The Group follows national and local directives on the disposal of urban and special waste. Most of the waste collected separately consists of paper, cardboard, glass and organic waste. At the Slovakian plant, the production wastage and hazardous waste mainly consists of grinding and polishing materials, packaging and sludge.

Regular monitoring and constant improvement efforts to reduce waste are a particular focus for the Group. Technogym maximises the use of recyclable components in its packaging, by using wood and cardboard where possible as indicated in the final section on products and packaging. In 2021, Technogym S.p.A. obtained the Ecol design Award for its commitment to the environment by adopting models with high ecological efficiency. The recognition conferred on the company by Recycla S.p.A., which is given to the most virtuous companies in terms of waste management, shows the effectiveness of the environmental management system.

However, in 2023, there was an increase in waste produced (+27% compared to 2022) for both Technogym S.p.A. and the Slovakian headquarters. The increase mainly concerns non-hazardous waste.

Total weight of waste (tonne)

Total weight of hazardous waste (tonne)

Total weight of non-hazardous waste (tonne)

ENVIRONMENTAL IMPACT OF PRODUCTS AND APPROACH PACKAGING STRATEGY

70.

9.4

The catalogue contains 7 self powered machines: Excite Live 10" Human Powered Bike, Recline, Synchro, Vario, SkillRow, Group Cycle Ride and Group Cycle Connect.

The process refers to the Still Novo product.

72.

Machines not used in the Still Novo line, and production wastage, is given to third parties for transport and recovery in accordance with current legislation. All operations are traceable along their route, as indicated in the dedicated section.

Our focus on the environment also extends to our products. Our catalogue contains various self-powered machines ⁷⁰ that are not connected to mains electricity. They have a small generator connected to the parts of the machine that are set in motion by the user while exercising. The generator produces current which is used to power the machine, the display and the brake control system. Technogym also promotes its approach to the circular economy by way of the "Refurbish" service. The "sustainable refurbished products"⁷¹ process involves recovering equipment at the end of their first usage cycle. Each machine is carefully disassembled and the components separated by type. All metal components are recovered and only the visible parts are re-coated using water-based products. The electronic components are disassembled, overhauled, tested and used, where possible in the process or alternatively as spare parts ⁷².

This reduces the environmental impact and maximises the use of raw materials: in 2023, 50% of the eligible machines withdrawn were reconditioned. The process of reconditioning Technogym machines is in line with SDG 12 of the United Nations' Sustainable Development Goals.

The Group is committed to helping recover materials which would otherwise be sent to landfill. It ensures that all materials that cannot be recovered are separated appropriately. Environmental protection is an ongoing concern for the company, which always seeks the most effective ways to optimise possible impacts. For this reason, the responsible management of packaging is also an integral part of the Group's sustainability strategy.

As testament to this, Technogym responsibly procures its packaging only from suppliers that produce recycled paper and cardboard, with their materials coming from FSC (Forest Stewardship Council) certified and recycled sources and wood certified by the PEFC (Programme for the Endorsement of Forest Certification schemes) and FITOK, whose certifications of wood packaging are aimed at preventing the spread of harmful organisms that might have economic and environmental effects on the world's forests. Since 2020, 98% of the weight of materials that make up Technogym packaging is FSC- and PESC-certified. Aware of the possible excess waste material from product packaging, the Group has also adopted reusable containers, thus avoiding shipments with paper and cardboard packaging. Technogym's approach to responsible packaging management consists of four main actions

1. Packaging Redesign, the aims of which are:

› to reduce packaging weight, which has potential positive effects on resource consumption, carbon emissions associated with the procurement of materials, production and transportation, and taxes associated with EPR;
› to reduce over-packaging all along the supply chain;
› to minimise the use of mixed materials;
› to increase recycled content;
› to improve the percentage of recyclable, compostable and reusable packaging;
› to increase the use of environmentally friendly ink.

2. Responsible forestry certification - FSC

The Forest Stewardship Council is an international, not-for-profit NGO. FSC launched an internationally recognised forest certification system. The aim of this certification is to make sure forests are properly managed and derivative products are properly traced. The paper and certified materials are managed responsibly at every stage of the supply chain. The process includes criteria linked to respect for, and protection of the rights of indigenous people and of the local forest communities from where the timber is harvested.

3. Landfill biodegradable technology

Packaging bearing the 'OK compost INDUSTRIAL' label is guaranteed to be biodegradable in an industrial composting plant; this applies to all the components, inks and additives used in the processing of the product. The label is valid across Europe and guarantees that the certified product has been the subject of thorough studies and specific analysis, and that it meets the stringent requirements of standard UNI EN 13432: 2000 and conforms to the European packaging and packaging waste directive (94/62/CEE).

4. Recycling codes labelling

Technogym pays close attention to identifying the material from which a product is made, by using recycling codes. This system makes it easier to determine how it should be recycled.

Technogym Sustainable Packaging

ATTACHMENT 1

Environment 219

Total waste not directed to disposal (tonne) *

		Technogym S.p.A.				Technogym EE	Total
	2021	2022	2023	2021	2022	2023	2021	2022	2023
Total waste not directed to disposal (tonne)	855.08	691.08	864.54	300.46	319.64	456.04	1,155.54	1,010.71	1,320.57
Hazardous waste	18.43	21.34	33.64	3.09	1.13	1.34	21.52	22.47	34.98
Re-use	0.00	0.00	0.00	0.92	0.59	0.25	0.92	0.59	0.25
Recycling	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	1.09
Composting	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Recovery, including energy recovery	18.43	21.34	33.64	2.17	0.55	0.00	20.60	21.88	33.64
Non-hazardous waste	836.65	669.74	830.90	297.37	318.51	454.70	1,134.02	988.24	1,285.60
Re-use	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Recycling	0.00	0.00	0.00	287.41	306.55	451.60	287.41	306.55	451.60
Composting	0.00	0.00	0.00	3.31	4.60	3.10	3.31	4.60	3.10
Recovery, including energy recovery	836.65	669.74	830.90	6.65	7.35	0.00	843.30	677.09	830.90

Total waste directed to disposal (tonne) *

		Technogym S.p.A.			Technogym EE				Total
	2021	2022	2023	2021	2022	2023	2021	2022	2023
Total waste directed to disposal (tonne)	14.4	20.3	49.11	191.43	249.34	255.02	205.83	269.64	304.14
Hazardous waste	0.67	0.75	0.69	66.81	108.66	99.51	67.48	109.42	100.20
Incinerator	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Landfill	0.00	0.00	0.00	57.43	61.819	64.50	57.43	61.82	64.50
On-site storage	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Other 73 (water for washing)	0.67	0.75	0.69	9.38	46.845	35.01	10.05	47.60	35.70
Non-hazardous waste	13.73	19.54	48.42	124.62	140.67	155.51	138.35	160.22	203.94
Incinerator	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Landfill	0.00	0.00	0.00	122.95	137.853	147.30	122.95	137.85	147.30
On-site storage	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Other (water for washing)	13.73	19.54	48.42	1.67	2.82	8.22	15.40	22.36	56.64

* Waste management operations are conducted outside the physical boundaries and administrative control of the organisation

In 2023, Technogym S.p.A. recorded the disposal of particular special waste via certain facilities. Reports declare the activity to be in compliance with laws requiring that this waste be taken to landfill rather than recovered.

Direct and indirect energy consumption

			Technogym S.p.A.			Technogym EE	Total
Direct and indirect energy consumption (GJ)	2021	2022	2023	2021	2022	2023	2021	2022	2023
Direct consumption
Natural gas	10,519.15	9,387.26	7,821.94	31,761.71	29,560.24	29,722.58	42,280.86	38,947.49	37,544.53
Diesel	5,589.87	6,190.88	6,718.63	437.96	476.49	465.63	6,027.83	6,667.37	7184.25
Petrol	46.69	60.19	108.09	0.00	0.00	0.00	46.69	60.19	108.09
Methane	397.00	224.86	202.66 74	0.00	0.00	0.00	397.00	224.86	202.66
Total direct energy consumption	16,552.71	15,863.18	14,851.32	32,199.67	30,036.73	30,188.21	48,752.39	45,899.91	45,039.53
Indirect consumption
Electricity consumption	16,854.11	16,916.93	19,261.47	14,355.12	14,351.75	14,109.04	31,209.23	31,268.68	33,370.51
Energy consumption for heating	0.00	0.00	0.00	0.00	0.00	208.00	0.00	0.00	208.00
Energy consumption for cooling	2,895.53	2,769.92	3,140.80	519.92	597.99	596.54	3,415.45	3,367.91	3,737.34
Total indirect energy consumption	19,749.64	19,686.85	22,402.27	14,875.04	14,949.74	14,913.58	34,624.68	34,636.59	37,315.85
Of which from renewable sources 75	2,683.98	4,683.50	8,247.26	0.00	0.00	0.00	2,683.98	4,683.50	8,247.26
Total energy consumption	36,302.36	35,550.03	37,253.59	47,074.71	44,986.47	45,101.79	83,377.07	80,536.50	82,355.38

Direct and indirect CO2 emissions 76

		Technogym S.p.A.		Technogym EE					Total
CO2 e direct emissions (tCO2 e)	2021	2022	2023	2021	2022	2023	2021	2022	2023
Scope 177
Methane/ Natural gas	590.24	527.31	440.32	1,782.19	1,660.47	1,673.18	2,372.43	2,187.78	2,113.50
Diesel	417.81	463.27	474.26	32.73	35.66	32.87	450.54	498.92	507.13
Petrol	3.40	4.34	7.03	0.00	0.00	0.00	3.40	4.34	7.03
Methane	22.58	12.76	11.41	0.00	0.00	0.00	22.58	12.76	11.41
Total direct GHG emissions (Scope 1)	1,034.03	1,007.67	933.02	1,814.92	1,696.13	1706.05	2,848.95	2,703.79	2639.07

Owing to a malfunction of the supplier's digital meter, the estimated figures for methane consumption for December 2023 are approximately half those of December 2022
Calculation based on the percentage of energy generated from renewable sources as declared by the supplier. The composition of the energy mix for the production of electricity sold by the supplier was considered 76. The emission factors are subject to change with respect to the previous year. This may result in changes in values.
Source of 2023 emission factors: DEFRA 2023

			Technogym S.p.A.			Technogym EE78			Total
CO2 e indirect emissions (tCO2 e)	2021	2022	2023	2021	2022	2023	2021	2022	2023
Scope 2
Location based79: Mains electricity	2,420.44	1,154.58	1,652.74	659.90	625.62	615.04	3,080.34	1,780.20	2,267.78
Location based: Heating energy	0.00	0.00	0.00	0.00	0.00	9.07	0.00	0.00	9.07
Location based: Cooling energy	415.83	189.05	269.50	23.90	26.07	26.00	439.73	215.12	295.49
Total indirect GHG emissions (Scope 2)	2,836.27	1,343.63	1,922.24	683.80	651.68	650.11	3,520.07	1,995.31	2,572.35
Market-based80: Mains electricity	2,148.90	1,551.50	1,445.94	869.28	736.01	730.93	3,018.18	2,287.51	3,176.86
Market-based: Heating energy	0.00	0.00	0.00	0.00	0.00	10.78	0.00	0.00	10.78
Market-based: Cooling energy	369.18	351.30	398.84	31.48	30.67	30.90	400.66	381.96	429.73
Total indirect GHG emissions (Scope 2)	2,518.08	1,902.80	2844.7881	900.77	766.67	772.61	3,418.85	2,669.47	3,617.38

To ensure data comparability, the amount of CO2 emissions (location-based method) relating to Technogym EE was also recalculated for 2021 and 2022 using the emission factors published by AIB.
Source of 2023 emission factors: AIB, ISPRA 2023
Source of 2023 emission factors: AIB 2023.
The percentage of renewable energy declared by the supplier was not considered as it is not Guarantee of Origin GO-certified (as laid down by the GHG Protocol). The calculations were carried out ensuring the verifiability of data and transparency in the emission values.

TABLE OF AREAS COVERED BY THE DECREE — GRI STANDARDS 10

10 Table of areas covered by the Decree – GRI Standards

DECREE AREA	MATERIAL TOPIC	NFS CHAPTER	REFERENCE TO OTHER DOCUMENT	GRI STANDARDS	RISKS	CONTROL TOOLS
Environmental aspects	Circular economy	Chapter 9. Environment		302 "Energy"; 303 "Water"; 305 "Emissions"; 306 "Waste"	Inadequate management of waste, temporary storage at the production site and the transfer of waste to third parties for transport/disposal/ recovery. High level of atmospheric emissions from production operations. Contamination of land, subsoil and water from the use of chemicals and fuels in the production operations.	•Code of Ethics •231 Model •Integrated Environmental, Quality and Management Systems Policy ISO 9001, ISO 14001, ISO 50001 and ISO 45001
Anti-corruption	Ethics and integrity in the conduct of business Governance and risk management Anti-corruption	Chapter 3. Corporate Governance System	See the Corporate Governance Report for more details.	GRI 205 "Anti corruption"	Inadequate negotiation, stipulation and execution of agreements for the sale of goods and services to private individuals. Inadequate selection, negotiation and stipulation of agreements with partners (traders and distributors) and suppliers. Inadequate management of economic and financial transactions. Inadequate management of relations with directors, employees or third parties involved in legal proceedings.	•Code of Ethics •231 Model •Technogym Vision Book •Code of Conduct

DECREE AREA	MATERIAL TOPIC	NFS CHAPTER	GRI STANDARDS	RISKS	CONTROL TOOLS
Social aspects	Capacity to guarantee safe, high performance products	Chapter 4. Wellness for the community	GRI 416 "Customer Health and Safety"	Accidents, including major accidents, which may occur at production sites.	•UNI CEI EN ISO 14385
					•GSP Procedure
	Customer centricity and experience caring	Chapter 5. Customer focus	GRI 418 "Customer privacy"	Malfunction of equipment due to inadequate installation and/or	•User manual
		Chapter 6. Responsible innovation and design		maintenance service.	•Service manual
				Malfunctioning, construction defects or non-conformities with product technical and contractual specifications.	•Privacy policy for the Technogym site and Mywellness account •Data Processing
					Agreement (template
				Failure to respond	for the Mywellness
				to requests/needs/	platform and for
				expectations of customers and the potential market.	managing Technogym suppliers)
				Lack of transparency in customer communications (marketing, labelling).	•"Information Security" Policy
				Inadequate management	•Lead Generation Policy
				of information systems and information security.	•Retention and
				Inadequate collection,	cancellation policy for Mywellness
				storage and processing of personal data.	•Launch of portability and cancellation
				Failure to respond to	system on the
				changes in customer preferences and failure to	Mywellness cloud platform
				appreciate new trends.	•ISO 27001 certification for the
					Mywellness platform
					•Health and Safety Policy

DECREE AREA	MATERIAL TOPIC	NFS CHAPTER	GRI STANDARDS	RISKS	CONTROL TOOLS
Social aspects and personnel management	Respect for human rights and the protection of workers Diversity and equal opportunities Employee training and career development Merit-based pay and bonus systems	Chapter 7. Well being of people	GRI 2-7 "Employees" GRI 2-8 "Non-employees" GRI 401 "Employment" GRI 403 "Workplace health and safety" GRI 404 "Training and education" GRI 405 "Diversity and equal opportunities" GRI 406 "Non-discrimination"	Discrimination against employees. Accidents, including major accidents, which may occur at production sites. Loss of key skills for implementing the strategy. Inadequate working conditions linked to cases of child labour, discrimination, salubriousness of the working environment, personnel health and safety. With regard to the Russia-Ukraine conflict, there are no specific risks to employees in Russia at present. However, Technogym is keeping a close eye on the potential implications of the geopolitical situation for its employees, and will intervene promptly, if	•Code of ethics •Technogym Vision Book •GTD Manual •Health and Safety Management Policy •UNI CEI EN ISO 45001 Management System • Health and Safety Policy
Respect for human rights	Safeguarding standards in the supply chain	Chapter 8. The supply chain	GRI 2-6 "Activities, value chain and other business relationships* GRI 308 "Supplier environmental assessment" GRI 414 "Supplier social assessment"	necessary. Inadequate working conditions linked to cases of child labour, discrimination, salubriousness of the working environment, personnel health and safety.	•Code of Ethics •231 Model •Contractual clauses for acknowledgement and acceptance of the Code of Ethics and 231 Management Model •"Supply Management" procedure • Procedure for the "Management of obligations related to works and temporary contracts, and temporary mobile sites" •Procedure for "Supplier Qualification and Rating" •"Qualification of manufacturing and production approval processes" procedure •Application for RoHS certification and compliance with REACH regulations" • Health and Safety Policy

MATERIAL TOPIC	NFS CHAPTER	GRI STANDARDS
International growth and consolidation	Chapter 1. The Technogym brand	GRI 201 "Economic performance"
Protection of trademark and intellectual property	Chapter 1. The Technogym brand	GRI 3-3 "Management of material topics"
Design innovation in product development	Chapter 6. Responsible innovation and design	GRI 3-3 "Management of material topics"
Data protection and cybersecurity	Chapter 5. Customer focus	GRI 418 "Customer privacy"

GRI-REFERENCED TABLE 11

11 GRI-referenced table

(IN ACCORDANCE WITH GRI 2021)

Statement of use			Technogym has drafted this Non-Financial Statement in accordance with the GRI Standards for the period 1 January to 31 December 2023
GRI 1 uses			GRI 1: Reporting principles (2021)
	GRI Standards - Applicable sectors		N/A
GRI STANDARDS	DISCLOSURE	NFS CHAPTER	REFERENCES	NOTES OR REASONS FOR OMISSION
GENERAL DISCLOSURES
	2-1 Organisational details		Reference is made to the Annual Report
	2-2 Entities included in the organisation's sustainability reporting	Guide to the Statement	Reference is made to the Annual Report	The reporting scope includes Technogym S.p.A. and all the fully consolidated companies in the Consolidated Financial Statement. Any limitations of this scope for individual figures have been indicated: Technogym UK Ltd; Technogym Germany Gmbh; Technogym E.E. SRO; Technogym Benelux BV; Technogym USA Corp.; Technogym Shanghai Int. Trading Co. Ltd.; Technogym Australia Pty Ltd; Technogym Japan Ltd.; Technogym International BV; Technogym Trading SA; FKB Equipamentos LTDA; Technogym France Sas; Technogym Asia Ltd; Sidea S.r.l; Technogym Portugal, Unipessoal Lda; TGB Srl; Amleto Aps; Wellness Partner Ltd; DWL Srl; TG Technogym SA; Technogym Saudi LLC; MyWellness Inc.; Technogym Emirates LLC; Technogym Arabia LLC.
GRI 2: General Disclosures 2021	2-3 Reporting period, frequency and contact point	Guide to the Statement
	2-4 Restatements of information			The figures for 2021 and 2022 in the "Suppliers by geographical area" graphic (Chapter 8) were recalculated considering only suppliers with an amount of over €10,000.
				The 2021 and 2022 figures used in the calculation of GHG Scope 2 emissions (location-based approach) for Technogym EE were recalculated using AIB emission factors.
	2-5 External assurance	Guide to the Statement		The selection of the external assurance supplier was made by requesting bids consistent with its needs.
	2-6 Activities, value chain and other business relationships	Chapter 1. The Technogym brand Chapter 8. The supply chain		The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants. There were no significant changes in the size, structure, ownership or supply chain.

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	REFERENCES	NOTES OR REASONS FOR OMISSION
	2-7 Employees	Chapter 7. Personal wellbeing
	2-8 Non-employees	Chapter 7. Personal wellbeing
	2-9 Governance structure and composition	Chapter 3. Corporate governance system	Reference is made to the Report on Corporate Governance and Ownership Structure for more details
	2-10 Nomination and selection of the highest governance body	Chapter 3. Corporate governance system
	2-11 Chair of the highest governance body	Chapter 3. Corporate governance system
	2-12 Role of the highest governance body in overseeing the management of impacts	Chapter 3. Corporate governance system
	2-13 Delegation of responsibility for managing impacts			The Chair of the Board of Directors performs a function of supervision and coordination of ESG activities.
GRI 2: General Disclosures 2021	2-14 Role of the highest governance body in sustainability reporting	Guide to the Statement
	2-15 Conflicts of interest	Chapter 3. Corporate governance system
	2-16 Communication of critical concerns	Chapter 3. Corporate governance system
	2-17 Collective knowledge of the highest governance body	Chapter 3. Corporate governance system
	2-18 Evaluation of the performance of the highest governance body	Chapter 3. Corporate governance system
	2-19 Remuneration policies	Chapter 7. Personal wellbeing	See the Report on the Remuneration and compensation policy
	2-20 Procedure for determining remuneration	Chapter 7. Personal wellbeing		The Remuneration Report is approved by the Appointments and Remuneration Committee and, immediately afterwards, by the Board of Directors.
	2-21 Annual total compensation ratio	Chapter 7. Personal wellbeing
	2-22 Statement on sustainable development strategy	Letter from the Chairperson

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	REFERENCES	NOTES OR REASONS FOR OMISSION
	2-23 Policy commitments	Chapter 2. Sustainability at Technogym	Reference is made to the Sustainability Policy	Technogym adopts a prudential approach to reducing the environmental impact of its production processes and products, according to principle 15 of the United Nations Rio Declaration (precautionary principle).
		Chapter 3. Corporate governance system
	2-24 Embedding policy commitments	Chapter 2. Sustainability at Technogym	Reference is made to the Sustainability Policy
		Chapter 3. Corporate governance system
GRI 2:	2-25 Processes to remediate negative impacts			To date, no critical situations have occurred. Should any occur, the Chief Executive Officer will refer to all control functions and to the Board of Directors, who will take the decisions deemed most appropriate.
General Disclosures 2021	2-26 Mechanisms for seeking advice and raising concerns	Chapter 3. Corporate governance system
	2-27 Compliance with laws and regulations			The organisation did not identify any significant cases of non-compliance with laws and regulations during the reporting period.
	2-28 Associations	Chapter 4. Wellness for the community
	2-29 Approach to stakeholder engagement	Chapter 2. Sustainability at Technogym
	2-30 Collective bargaining agreements	Chapter 7. Personal wellbeing
MATERIAL TOPICS
GRI 3: 2021 Material topics	3-1 Procedure for determining material topics	Chapter 2. Sustainability at Technogym
	3-2 List of material topics	Chapter 2. Sustainability at Technogym
	MATERIAL TOPIC: INTERNATIONAL GROWTH AND CONSOLIDATION
GRI 3: 2021 Material topics	3-3 Management of the material topic	Chapter 1. The Technogym brand
GRI 201: 2016 economic performance	201-1 Direct economic value generated and distributed	Chapter 1. The Technogym brand
GRI 201: 2016 economic performance	201-4 Financial assistance received from government	Chapter 1. The Technogym brand	Reference is made to the Separate Financial Statements.
GRI 202: Market presence 2016	202-2 Proportion of senior management hired from the local community	Chapter 7. Personal wellbeing

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	NOTES OR REASONS FOR OMISSION
MATERIAL TOPIC: ANTI-CORRUPTION
GRI 3: 2021 Material topics	3-3 Management of the material topic	Chapter 3. Corporate governance system
GRI 205: Anti-corruption 2016	205-3 Confirmed incidents of corruption and actions taken	Chapter 3. Corporate governance system
	MATERIAL TOPIC: ETHICS AND INTEGRITY IN THE CONDUCT OF BUSINESS
GRI 3: 2021 Material topics	3-3 Management of the material topic	Chapter 3. Corporate governance system
GRI 206: Anti-competitive Behaviour 2016	206-1 Legal actions for anti competitive behaviour, anti-trust and monopoly practices		During 2023, no legal actions relating to unfair competition or anti-trust activities were recorded.
	MATERIAL TOPIC: GOVERNANCE AND RISK MANAGEMENT
GRI 3: 2021 Material topics	3-3 Management of the material topic	Chapter 3. Corporate governance system
GRI 207: Tax 2019	207-1 Approach to tax	Chapter 1. The Technogym brand
GRI 207: Tax 2019	207-2 Tax governance, control and risk management	Chapter 1. The Technogym brand
GRI 207: Tax 2019	207-3 Stakeholder engagement and management of concerns related to tax	Chapter 1. The Technogym brand
GRI 207: Tax 2019	207-4 Country-by-country reporting		As regards country-by-country reporting (Decree 23 February 2017), Technogym — albeit not currently subject to this regulatory requirement — is organising itself to be ready to respond to the requirements of the Decree and to ensure suitable implementation in accordance with best practice.
ENVIRONMENT 80
GRI 3: 2021 Material topics	3-3 Management of the material topic	Chapter 9. Environment
GRI 302: Energy 2016	302-1 Energy consumed within the organisation	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 302: Energy 2016	302-3 Energy intensity	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 303: Water and Effluents 2018	303-1 Interactions with water as a shared resource	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.

Non-material topic, as indicated in chapter 2, but reported as indicated by the Decree.

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	NOTES OR REASONS FOR OMISSION
GRI 303: Water and Effluents 2018	303-2 Management of water discharge-related impacts	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 303: Water and Effluents 2018	303-3 Water withdrawal by source	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 305: Emissions 2016	305-1 a. "Direct greenhouse gas emissions (scope 1) per tonnes of CO2 "	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 305: Emissions 2016	305-2 a. "Greenhouse gas emissions from energy consumption (scope 2) per tonnes of CO2 "	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
MATERIAL TOPIC: CIRCULAR ECONOMY
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 8 The supply chain	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 306: Waste 2020	306-2 Management of significant waste-related impacts	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 306: Waste 2020	306-3 Waste generated	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 306: Waste 2020	306-4 Waste not directed to disposal	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.
GRI 306: Waste 2020	306-5 Waste directed to disposal	Chapter 9. Environment	The perimeter only includes Technogym S.p.A. and Technogym EE S.r.o. The subsidiaries have not been included as it was not possible to obtain data for the whole boundary as some subsidiaries have a supply system that does not allow reporting according to GRI.

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	REFERENCES	NOTES OR REASONS FOR OMISSION
	MATERIAL TOPIC: SAFEGUARDING STANDARDS IN THE SUPPLY CHAIN
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 8 The supply chain		The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants.
GRI 308: Supplier Environmental Assessment 2016	308-1 New suppliers that were screened using environmental criteria	Chapter 8 The supply chain		The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants.
GRI 308: Supplier Environmental Assessment 2016	308-2 a. Negative environmental impacts in the supply chain and	Chapter 8 The supply chain		Points a, b, c of this policy are reported and points d and e are omitted.
	measures taken		The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants.
	MATERIAL TOPIC: MERIT-BASED PAY AND BONUS SYSTEMS
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 7. Personal wellbeing
GRI 401: Employment 2016	401-1 New employee hires and employee turnover	Chapter 7. Personal wellbeing
GRI 401: Employment 2016	401-2 Expected benefits for full-time employees but not part-time or temporary employees	Chapter 7. Personal wellbeing
	MATERIAL TOPIC: RESPECT FOR HUMAN RIGHTS AND THE PROTECTION OF WORKERS
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 7. Personal wellbeing
GRI 401: Employment 2016	401-3 Parental leave	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	403-1 Occupational health and safety management system	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	403-2 Hazard identification, risk assessment, and incident investigation	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	403-3 Occupational health services	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	403-4 Worker participation, consultation, and com munication on occupa tional health and safety	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	GRI 403-5 Worker training on occupational health and safety	Chapter 7. Personal wellbeing		The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	NOTES OR REASONS FOR OMISSION
GRI 403: Occupational health and safety 2018	403-6 Promotion of worker health	Chapter 7. Personal wellbeing	The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Chapter 7. Personal wellbeing	The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	GRI 403-8 Workers covered by an occupational health and safety management system	Chapter 7. Personal wellbeing	The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	GRI 403-9 Work-related injuries	Chapter 7. Personal wellbeing	The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
GRI 403: Occupational health and safety 2018	GRI 403-10 Work-related ill health	Chapter 7. Personal wellbeing	The perimeter includes Technogym S.p.A. and Technogym EE where most of the activities and employees are concentrated. The figures relating to the subsidiaries are not currently available or relevant.
	MATERIAL TOPIC: EMPLOYEE TRAINING AND CAREER DEVELOPMENT
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 7. Personal wellbeing
GRI 404: Training and education 2016	404-1 Average hours of training per year per employee.	Chapter 7. Personal wellbeing
GRI 404: Training and education 2016	404-2 Programs for upgrading employee skills and transition assistance programs	Chapter 7. Personal wellbeing
GRI 404: Training and education 2016	404-3 Percentage of employees receiving regular performance and career development reviews	Chapter 7. Personal wellbeing	The perimeter for the subsidiaries does not include Russia as the figures are unavailable.
	MATERIAL TOPIC: DIVERSITY AND EQUAL OPPORTUNITIES
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 7. Personal wellbeing
GRI 405: Diversity and equal opportunities 2016	405-1 Diversity of governance bodies and employees	Chapter 3. Corporate Governance System
		Chapter 7. Personal wellbeing
GRI 406: Non	406-1	Chapter 7.

Personal wellbeing

discrimination 2016

Incidents of discrimination and corrective actions taken

GRI STANDARDS	DISCLOSURE	NFS CHAPTER	NOTES OR REASONS FOR OMISSION
	MATERIAL TOPIC: SAFEGUARDING STANDARDS IN THE SUPPLY CHAIN
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 8 The supply chain
GRI 414: Supplier social assessment 2016	414-1 New suppliers that were screened using social criteria	Chapter 8 The supply chain	The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants.
GRI 414: Supplier social assessment 2016	414-2 Negative social impacts in the supply chain and actions taken	Chapter 8 The supply chain	The subsidiaries are excluded from the perimeter as the production operations with the highest risks and impacts relate to the Italian and Slovakian plants.
	MATERIAL TOPIC: CAPACITY TO GUARANTEE SAFE, HIGH-PERFORMANCE PRODUCTS
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 6. Responsible innovation and design
GRI 416: Customer health and safety 2016	416-1 Incidents of non compliance concerning the health and safety impacts of products and services		100% of products tested during the design phase.
GRI 416: Customer Health and Safety 2016	416-2 Assessment of the health and safety impacts of product and service category	Chapter 6. Responsible innovation and design
	MATERIAL TOPIC: CUSTOMER CENTRICITY AND CARING EXPERIENCE
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 5 Customer focus
	MATERIAL TOPIC: DATA PROTECTION AND CYBERSECURITY
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 5 Customer focus
GRI 418: Customer Privacy 2016	418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data		In 2023, the total number of substantiated complaints received regarding customer privacy violations was zero.
	MATERIAL TOPIC: PROTECTION OF TRADEMARK AND INTELLECTUAL PROPERTY
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 1. The Technogym brand
		Chapter 8. The supply chain
	MATERIAL TOPIC: PRODUCT DESIGN INNOVATION
GRI 3: 2021 Material topics	3-3 Management of material topics	Chapter 6. Responsible innovation and design

ATTACHMENTS EU TAXONOMY, PURSUANT TO EU REG. 2020/852

240 2023 Consolidated Non-Financial Statement

ANNEX I: TURNOVER KPI

Financial year 2023		Year					Substantial contribution criteria	"DNSH"(Do No Significant Harm) criteria
Economic activities (1)	Code (2)	Turnover (3)	Share of turnover, 2023 (4)	Mitigation of climate change (5)	Adaptation to climate change (6)	Water (7)	Pollution (8)	Circular economy (9)	Biodiversity (10)	Mitigation of climate change (11)	Adaptation to climate change (12)	Water (13)	Pollution (14)	Circular economy (15)	Biodiversity (16)	Minimum Safeguards (17)	aligned (A.1.) or eligible Proportion of turnover (A.2.) to the taxonomy year 2022 (18)	Category: enabling activity (19)	Category: transitional activity (20)
		Euro	%	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	A	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Eco-sustainable activities (taxonomy-aligned)
Turnover of eco-sustainable activities (taxonomy-aligned) (A.1)	—	0.00	0.00%	0%	0%	0%	0%	0%	0%	—	—	—	—	—	—	—	0%
Of which enablers		0.00	0.00%	%	%	%	%	%	%	—	—	—	—	—	—	—	0%	A
Of which transitional		0.00	0.00%	%						—	—	—	—	—	—	—	0%		T
A.2. Activities that are taxonomy-eligible but not eco-sustainable (taxonomy-non-aligned activities)
				Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.
Turnover of activities that are taxonomy-eligible but not eco sustainable (taxonomy-non aligned activities) (A.2)	—	€0.00	0.00%	0%	0%	0%	0%	0%	0%								0%
A. Turnover of taxonomy eligible activities (A.1 + A.2)	—	€0.00	0.00%	0%	0%	0%	0%	0%	0%								0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of taxonomy-non eligible activities	—	€808,091,129.00	100%
Total	—	€808,091,129.00	100%

ANNEX II: CAPEX KPI

Financial year 2023		Year		Substantial contribution criteria						"DNSH"(Do No Significant Harm) criteria
Economic activities (1)	Code (2)	CapEx (3)	Share of CapEx, year 2023 (4)	Mitigation of climate change (5)	Adaptation to climate change (6)	Water (7)	Pollution (8)	Circular economy (9)	Biodiversity (10)	Mitigation of climate change (11)	Adaptation to climate change (12)	Water (13)	Pollution (14)	Circular economy (15)	Biodiversity (16)	Minimum Safeguards (17)	Proportion of CapEx aligned (A.1.) or eligible (A.2.) to the taxonomy year 2022 (18)	Category: enabling activity (19)	Category: transitional activity (20)
		Euro	%	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	A	T
	A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Eco-sustainable activities (taxonomy-aligned)
CapEx of eco-sustainable activities (taxonomy-aligned) (A.1)		€0.00	0.00%	0%	0%	0%	0%	0%	0%	—	—	—	—	—	—	—	0%
Of which enablers		€0.00	0.00%	0%	0%	0%	0%	0%	0%	—	—	—	—	—	—	—	0%	A
Of which transitional		€0.00	0.00%	0%						—	—	—	—	—	—	—	0%		T
A.2. Activities that are taxonomy-eligible but not eco-sustainable (taxonomy-non-aligned activities)
				Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.
Installation, maintenance and repair of energy efficiency devices	CCM 7.3	€214,848.12	0.61%	Elig.	Not elig.	Not elig.	Not elig.	Not elig.	Not elig.								0.04%
Research, development and innovation close to the market	CCM 9.1	€32,653.28	0.09%	Elig.	Not elig.	Not elig.	Not elig.	Not elig.	Not elig.								0.00%
CapEx of activities that are taxonomy-eligible but not eco sustainable (taxonomy-non aligned activities) (A.2)	—	€247,501.40	0.70%	0.70%	0%	0%	0%	0%	0%								0.08%
A. CapEx of taxonomy-eligible activities (A.1 + A.2)	—	€247,501.40	0.70%	0.70%	0%	0%	0%	0%	0%								0.08%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of taxonomy-non-eligible activities	—	€35,097,855.60	99.3%
Total	—	€35,345,357.00	100%

ANNEX III: OPEX KPI

Financial year 2023	Year			Substantial contribution criteria						"DNSH"(Do No Significant Harm) criteria
Economic activities (1)	Code (2)	OpEx (3)	Proportion of OpEx, year 2023 (4)	Mitigation of climate change (5)	Adaptation to climate change (6)	Water (7)	Pollution (8)	Circular economy (9)	Biodiversity (10)	Mitigation of climate change (11)	Adaptation to climate change (12)	Water (13)	Pollution (14)	Circular economy (15)	Biodiversity (16)	Minimum Safeguards (17)	aligned (A.1.) or eligible (A.2.) to the taxonomy Proportion of OpEx year 2022 (18)	Category: enabling activity (19)	Category: transitional activity (20)
		Euro	%	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N; Not elig.	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	A	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Eco-sustainable activities (taxonomy-aligned)
Turnover of eco-sustainable activities (taxonomy-aligned) (A.1)		€0.00	0.00%	0%	0%	0%	0%	0%	0%	—	—	—	—	—	—	—	0%
Of which enablers		€0.00	0%	0%	0%	0%	0%	0%	0%	—	—	—	—	—	—	—	0%	A
Of which transitional		€0.00	0%	0%						—	—	—	—	—	—	—	0%		T
A.2 Activities that are taxonomy-eligible but not eco-sustainable (taxonomy-non-aligned activities)
				Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.	Elig.; Not elig.
Research, development and innovation close to the market	CCM 9.1	€75,088.60	0.32%	Elig.	Not elig.	Not elig.	Not elig.	Not elig.	Not elig.								0.00%
Operating costs of activities that are taxonomy-eligible but not eco-sustainable (taxonomy-non-aligned activities) (A.2)		€75,088.60	0.32%	0.32%	0%	0%	0%	0%	0%								0.02%
A. OpEx of taxonomy-eligible activities (A.1 + A.2)		€75,088.60	0.32%	0.32%	0%	0%	0%	0%	0%								0.02%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Operating costs of taxonomy non-eligible activities		€23,463,875.02	98.63%
Total		€23,538,964.00	100%

MODELS PURSUANT TO ANNEX XII, DELEGATED REGULATION (EU) 2021/2178

ACTIVITIES RELATING TO NUCLEAR ENERGY
1	The company carries out, finances or has exposure to the research, development, demonstration and construction of innovative electricity generation plants that produce energy from nuclear processes with a minimum quantity of waste from the fuel cycle.	NO
2	The company carries out, finances or has exposure to the construction and safe operation of new nuclear installations for the generation of electricity or process heat, including for district heating purposes or for industrial processes such as hydrogen production, and improvements to their safety, with the help of the best available technologies.	NO
3	The company carries out, finances or has exposure to the safe operation of existing nuclear installations for the generation of electricity or process heat, including for district heating or industrial processes such as hydrogen production from nuclear power, and improvements to their safety.	NO
ACTIVITIES RELATING TO FOSSIL GASES
4	The company carries out, finances or has exposure to the construction or operation of electricity production plants that use fossil gas fuels.	NO
5	The company carries out, finances or has exposure to the construction, upgrading and operation of combined heat/cooling and electricity generation plants that use fossil gas fuels.	NO
6	The company carries out, finances or has exposure to the construction, upgrading and operation of heat generation plants that produce heat/cooling using fossil gas fuels.	NO

As it does not present any economic activities as laid down in Annexes I and II, sections 4.26, 4.27, 4.28, 4.29, 4.30 and 4.31 of Delegated Regulation (EU) 2021/2139 (i.e. activities relating to nuclear energy or fossil gases), the Technogym Group does not show models 2,3,4,5 of Annex XII of Delegated Regulation (EU) 2021/2187.

246 2023 Consolidated Non-Financial Statement

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12 Report of Independent Auditing Firm

2023 Consolidated Non-Financial Statement

Report of Independent Auditing Firm 253

Corporate data

Registered Office

Technogym S.p.A. Via Calcinaro, 2861 47521 Cesena (FC) – Italy

Legal Details

Authorised and subscribed share capital Euro 10,066,375 VAT number, Tax Code and CCIAA (Chamber of Commerce, Industry, Craft Trade and Agriculture) no.: 06250230965 Forlì Cesena Economic and Administrative Register no. 315187

Technogym stores

Cesena Via Calcinaro 2861 Milan Via Durini 1 New York Greene Street, 70 Los Angeles, 131 N Robertson Blvd Moscow Red Square 3, GUM, 3rd floor/3rd line Moscow Vremena Goda, Kutuzovsky Ave, 48 Saint Petersburg Bolshoy prospekt P.S. 49/18 London c/o Harrods, Brompton Road 87-135 Marbella Bulevard Principe Alfonso de Hohenlohe, Centro Comercial La Poveda locale Madrid Calle de Claudio Coello, 77

254 2023 Consolidated Non-Financial Statement

www.technogym.com

Investor Relations

[email protected]

Press Office

[email protected]

Report of Independent Auditing Firm 255

2023 Consolidated Non-Financial Statement

Technogym S.p.A.

Via Calcinaro, 2861 — 47521 Cesena (FC) Capitale sociale Euro 10.050.250 interamente versato Iscritta alla C.C.I.A.A. di Forlì Cesena al n. 315187 REA Registro Imprese, Codice Fiscale, P. IVA n. 06250230965

Registered with the Economic and Administrative Index, Companies' Register, Tax code, VAT number 06250230965

AI assistant

Technogym — Environmental & Social Information 2024

4494_sr_2024-04-15_0e95fe7b-882b-4f0e-b3b9-672941ec2656.pdf

LET'S MOVE FOR A BETTER WORLD

INDEX CONTENTS

The Technogym brand

Sustainability at Technogym

Corporate Governance System

Wellness for the community

Customer focus

Innovation and responsible design

Personal wellbeing

The supply chain

Letter from the Chairperson

Guide to the Statement

ESG HIGHLIGHTS

Sustainability and Corporate Governance System

Diversity & Inclusion policy for all employees approved in 2023

Customer focus

Training hours

Responsible innovation and design

100% of projects tested during the design phase

Personal wellbeing

The Supply Chain

Purchases from Italy

Purchases from Europe (excluding Italy)

Purchases from the Rest of the World

Environmental welfare

Energy consumption and emissions

2,639 tonnes of CO2 eScope 1 emissions in 2023

Management of waste, products and packaging

1 THE TECHNOGYM BRAND

1 The Technogym brand

AN ALL-ITALIAN STORY 1.1

Milestones in Technogym's history

Milestones in Technogym's history

VISION AND STRATEGY 1.2

Strategy

1.3

36 2023 Consolidated Non-Financial Statement

TOTAL WELLNESS SOLUTION

Equipment

Networking Apps, Devices & Content

Services

Media Content

SUSTAINABLE VALUE 1.4

[201-1]

2023 economic value

Approach to tax transparency

INFORMATION PURSUANT TO ARTICLE 8 PURSUANT TO EU REGULATION 2020/852

Information about the accounting values used in the calculation of the KPIs

SUSTAINABILITY AT TECHNOGYM 2

2 Sustainability at Technogym

2.1

ESG PRIORITIES AND COMMITMENTS

Technogym ESG commitments through to 2025

Sustainability Plan

MATERIAL TOPICS 2.2

3CORPORATE GOVERNANCE SYSTEM

3 Corporate Governance System

GOVERNANCE BODIES 3.1

Code of Ethics

"It is Technogym's intention to conduct business not only by observing the laws, but with fairness regardless of the laws"

The Code applies to the entire scope of Technogym S.p.A.

The fight against corruption

Respect for market rules

CONTROL TOOLS

CONTROL TOOLS

INTEGRATED RISK MANAGEMENT 3.2

Systems for the management of company activities

4WELLNESS FOR THE COMMUNITY

4 Wellness for the community

THE BENEFITS OF WELLNESS 4.1

PROMOTING THE WELLNESS CULTURE 4.2

NATIONAL AND INTERNATIONAL INITIATIVES

Exercise is Medicine Initiative

Global Health & Fitness Alliance Partnership

Sponsorship of the "EuropeActive" Annual Publication

INITIATIVES IN THE WELLNESS VALLEY REGION

WELLNESS VALLEY ACTIVITIES IN 2023

Technogym Environmental & Social Information 2024

Turnover rate (departures) ³⁰