GEFRAN GROUP HALF-YEARLY FINANCIAL REPORT AS AT 30 JUNE 2026

GEFRAN GROUP

Half-yearly financial report as at 30 June 2026

2 Half-yearly financial report as at 30 June 2026

Gefran Group 3 Table of Contents Highlights ................................ ................................ ................................ ................................ .................... 5 Corporate Bodies ................................ ................................ ................................ ................................ ........... 6 Key consolidated income statement and statement of financial position figures ................................ .......... 7 Report on operations – Profile of the Group ................................ ................................ ........................... 9 Group Structure ................................ ................................ ................................ ................................ ........... 10 Gefran Group Activities ................................ ................................ ................................ ................................ 11 Research and development ................................ ................................ ................................ ......................... 11 Information on shareholders and stock performance ................................ ................................ .................. 14 Dealings with related parties ................................ ................................ ................................ ....................... 16 Alternative performance indicators ................................ ................................ ................................ .............. 17 Disclosure simplification ................................ ................................ ................................ .............................. 18 Report on operations - Information on activities ................................ ................................ .................. 19 Gefran consolidated results ................................ ................................ ................................ ......................... 20 Business areas ................................ ................................ ................................ ................................ ............ 32 1. Sensors business ................................ ................................ ................................ ................................ 32 2. Automation components ................................ ................................ ................................ ...................... 34 Investments ................................ ................................ ................................ ................................ ................. 37 Human resources ................................ ................................ ................................ ................................ ........ 38 Significant events during the first half of 2026 ................................ ................................ ............................. 39 Significant events following the first half of 2026 ................................ ................................ ......................... 40 Outlook ................................ ................................ ................................ ................................ ......................... 40 Own shares ................................ ................................ ................................ ................................ .................. 41 Report on operations – Disclosure of risks and uncertainties ................................ ............................ 43 1. Risks associated with countries and markets ................................ ................................ ...................... 49 2. Financial Risks ................................ ................................ ................................ ................................ ..... 51 3. Strategic Risks ................................ ................................ ................................ ................................ ..... 53 4. Governance and integrity risks ................................ ................................ ................................ ............ 55 5. Operating risks and reporting risks ................................ ................................ ................................ ...... 55 6. Legal and compliance risks ................................ ................................ ................................ ................. 56 7. IT risks ................................ ................................ ................................ ................................ ................. 57 8. Risks associated with human resources ................................ ................................ ............................. 57 9. ESG Risks ................................ ................................ ................................ ................................ ............ 58 Condensed half -yearly consolidated financial statements ................................ ................................ .. 61 Consolidated financial statements ................................ ................................ ................................ ............... 62 Specific explanatory notes to the accounts ................................ ................................ ................................ . 67 Attachments ................................ ................................ ................................ ................................ ............... 109 Certification of consolidated financial statements pursuant to Article 81 -ter of Consob regulation no. 11971 dated 14 May 1999, as amended ................................ ................................ ................................ .............. 112 External auditors’ report on the condensed half -yearly consolidated financial statements .......... 113

4 Half-yearly financial report as at 30 June 2026

Gefran Group 5

Highlights

6 Half-yearly financial report as at 30 June 2026

Corporate Bodies

Board of Directors Chairwoman Maria Chiara Franceschetti Vice Chairwoman Giovanna Franceschetti Chief Executive Officer Marcello Perini Director Andrea Franceschetti Director Alessandra Maraffini (*) Director Enrico Zampedri (*) Director Cristina Mollis (*) Director Giorgio Metta (*) Director Carlo Paris (*) (*) Independent directors pursuant to the Consolidated Law on Finance (TUF) and the Corporate Governance Code Board of Statutory Auditors Chairman Giorgio Alberti Standing auditor Roberta dell ’Apa Standing auditor Luisa Anselmi Deputy auditor Simona Bonomelli Deputy auditor Simonetta Ciocchi

Control and Risks Committee

- Alessandra Maraffini

- Carlo Paris

- Enrico Zampedri Appointments and Remuneration Committee

- Cristina Mollis

- Giorgio Metta

- Enrico Zampedri

Sustainability Committee

- Giovanna Franceschetti

- Marcello Perini

- Cristina Mollis

External Auditor

On 23 April 2024, the ordinary Shareholders ’ Meeting of Gefran S.p.A. engaged the External Auditor Deloitte & Touche S.p.A. to audit the annual financial statements of Gefran S.p.A., as well as the consolidated financial statements, the sustainability report and the consolidated half -yearly report o f the Gefran Group for a period of nine years until the approval of the financial statements for 2033, in accordance with Italian Legislative Decree no. 39/2010.

Gefran Group 7 Key consolidated income statement and statement of financial position figures

Group income statement highlights (Euro /000) 30 June 2026 30 June 2025 2Q 2026 2Q 2025

Revenues 73,815 100.0% 72,155 100.0% 37,483 100.0% 35,713 100.0% Profit 13,182 17.9% 13,764 19.1% 6,117 16.3% 5,928 16.6%

EBIT 8,993 12.2% 9,780 13.6% 4,022 10.7% 3,913 11.0%

Profit (loss) before tax 9,182 12.4% 9,022 12.5% 4,024 10.7% 3,399 9.5% Net profit (loss) 6,744 9.1% 6,632 9.2% 3,037 8.1% 2,547 7.1% Group Net profit (loss) 6,744 9.1% 6,618 9.2% 3,037 8.1% 2,533 7.1% Third parties Net profit (loss) - 0.0% 14 0.0% - 0.0% 14 0.0%

Group statement of financial position highlights (Euro /000) 30 June 2026 31 December 2025

Invested capital from operations 77,111 67,987 Net working capital 23,201 19,627 Shareholders ’ equity 102,661 100,829 Net debt relating to operations 25,550 32,842

(Euro /000) 30 June 2026 30 June 2025

Operating cash flow from operations 9,071 10,335 Investments in operations 8,058 3,088

8 Half-yearly financial report as at 30 June 2026

Gefran Group 9

Report on operations – Profile of the Group

10 Half-yearly financial report as at 30 June 2026

Group Structure

Gefran S.p.A.

Parent Company

Gefran Inc.

(USA - 100%)

Gefran Brasil Eletroeletrônica Ltda. (*) (Brazil - 100%) Gefran Deutschland GmbH (Germany - 100%) Gefran France S.A.

(France - 99.9%) Gefran Asia Pte. Ltd.

(Singapore - 100%) Gefran Automation Technology (Shanghai) Co. Ltd.

(China - 100%) Gefran UK Ltd.

(Great Britain - 100%) Axel S.r.l.

(Italy - 15%) Gefran Schweiz AG (Switzerland - 100%) Gefran Benelux N.V.

(Belgium - 100%) Gefran Soluzioni S.r.l.

(Italy - 100%)

Production Unit

Commercial Branch

(*) Gefran India and Gefran Brasil indirectly through Gefran Schweiz AG Elettropiemme S.r.l.

(Italy - 100%) Gefran India Private Ltd. (*) (India - 100%) 40Factory S.r.l.

(Italy – 22%) Robot At Work S.r.l.

(Italy – 24.83%) CZ Elettronica S.r.l.

(Italy - 100%)

Gefran Group 11 Gefran Group Activities The Gefran Group ’s business is centred around two main business areas: industrial sensors and automation components.

Design, production and commercialization activities are carried out through various sales channels, offering a complete range of products and solutions that can be applied in multiple automation sectors. About 67% of revenues are generated abroad.

Sensors business

The sensors business offers a complete range of products for measuring four physical parameters of position, pressure, force and temperature - which are used in many industrial sectors.

Gefran stands out for its technological leadership, creating in -house the primary elements, offering a complete range that is unique in the world and occupying leading positions worldwide for some product families. The sensors business generates about 77% of its revenues abroad.

Automation components

The automation components business develops around three main product lines that are widely used in the control of industrial processes: instrumentation, power control and automation platforms (operator panels, PLC, I/O modules). In addition to the supply of products, Gefran offers its customers the possibility of designing the entire automation solution, providing “tailor -made ” and “turnkey ” solutions, thanks to a strategic partnership both during the design and production stages.

Gefran stands out for its expertise in hardware and software acquired in over thirty years of experience. Gefran is one of the main Italian manufacturers in these product lines and generates around 43% of its business revenues through exports.

Research and development The Gefran Group invests significant financial and human resources in product research and development. In the first half of 2026 , about 6.1% of revenues were invested in these activities, which are considered strategic to maintain high technological and innovative levels in products, ensuring the competitiveness required by the market.

Research and development is mainly concentrated in Italy and managed by the technical area. It includes development of new technologies, evolution of the characteristics of existing products, product certification in addition to the design of custom produc ts at the request of specific customers. The activities carried out in the laboratories of the Group ’s historic headquarters in Provaglio d ’Iseo (BS) are now complemented by the technological hub dedicated to force and deformation sensors at the laboratories of the Swiss branch Gefran Schweiz AG, a new R&S office dedicated to magnetostrictive sensors in the new laboratories of the German branc h Gefran Deutschland GmbH, located near Stuttgart, as well as an R&S function at the Chinese production branch Gefran Automation Technology.

The cost of technical personnel involved in these activities, as well as for consultancy and the purchase of materials used for testing, is charged in full to the income statement, except for costs that are capitalised according to the conditions set out i n IAS 38. Costs identified for capitalisation and that meet the above requirements are indirectly suspended by a revenue entry under “Increases for internal work ” in the income statement.

12 Half-yearly financial report as at 30 June 2026 In the first half of 2026, the technical area of the Sensors business pursued research and development activities with a view to further expanding the product offering, focusing on the range dedicated to mobile hydraulics and the digital connectivity of sensors for use in Industry 4.0 architecture. These development s were consistent with the main business drivers identified by the

Group, specifically:

• focus on strategic vertical markets and specific segments: mobile machinery (in particular:

railways and agriculture), plastics (polymers, machinery);

• global reliability and compliance: products developed to meet strict international standards, increasing credibility in the most regulated sectors (rail, explosion -proof);

• continuous technological innovation: technology upgrades and expansion of the range of sensors with a view to operator safety;

• customer -centric design: sensors designed to easily integrate with solutions already installed on the market.

Specifically, at the beginning of the year, Gefran launched its new TPLA low -pressure sensor, based on silicon piezoresistive technology, introducing this technology for the first time in the Group ’s products. The sensor is intended for industrial applications that require accurate low-pressure measurements (up to a few mbar), such as packaging, food & pharma, industrial printers, dispensers and extrusion blow moulding.

During the first quarter of 2026, the new SIL2 - and PLd -certified GSH Safety wired sensor family, compliant with EN ISO 13849 -1, EN IEC 62061 and IEC 61508 functional safety standards, was officially launched. The certification covers models GSH -S (linear position measurement) and GSH -

A (linear position and tilt angle measurement). The new versions maintain full fit, form and function compatibility with existing GSH sensors, making it easier to integrate and certify customer machines.

The range is mainly in tended for the mobile machinery market and for applications that require sensors that are certified for functional safety.

For the sake of completeness, it is added, also in the mobile machinery market, that the development activities aimed at obtaining safety certifications (SIL2 and PLd) also for the GRA/GRN rotary sensors and the GIB inclinometers sensors will continue in 2 026.

This initiative, which involves a significant part of Gefran ’s sensor portfolio, represents an important step in the evolution of our offering dedicated to mobile applications and concretely demonstrates our strategy aimed at strengthening the Group ’s positioning in this market. Our aim is to provide customers with an ever -wider range of certified solutions for functional safety that can support the regulatory requirements of the most advanced applications and guarantee the highest standards of machin e reliability and safety.

As regards the plastic and metal markets, the product development roadmap has been mainly focused on the evolution of the magnetostrictive sensor family. In 2025, a completely new technological platform was developed that will lead to the launch, in the se cond half of 2026, of a series of models designed to operate in the most demanding industrial conditions.

The new sensors will offer benchmark performance in terms of precision, speed and robustness, with sampling frequencies of up to 5 kHz and a vibration resistance of up to 30 g @ 2 kHz, as well as integrating advanced communication interfaces such as IO -Link and SSI.

These innovations have been developed to meet the requirements of the most demanding applications in the plastics and metalworking sectors, ensuring ever higher levels of reliability, productivity and integration in modern industrial automation systems.

Gefran Group 13 During the first half of 2026, research and development activities for automation components were focused on three main strategic directions:

• algorithm review and modelling, aimed at improving the accuracy of controls;

• the development of power products, with the aim of increasing their current capacity up to and beyond 900 A;

• the evolution of RTE protocols, aimed at increasing the speed of communication and the quantity of information exchanged between devices.

In particular, with reference to the G -Mation automation platform (launched in May 2025), the new G-Mation W55 operator panels were launched on the market (January 2026), supporting both the operator page display technology implemented by the machine appli cations already available on the market and the new full web technology that represents the future of the platform.

In this regard, the first version of the web editor for the GF Project application development software was developed in the first half of 2026, allowing for the generation of web pages for machine control.

This editor will be released in the second half o f the year and will allow Gefran customers to create web-based operator pages, thus exploiting the full potential of the G -Mation platform. Also in the first half of the year, the cybersecurity certification process for the G -Mation platform was launched, aimed at ensuring and demonstrating the platform ’s full compliance with the requirements of the Cyber Resilience Act (in force from December 2027).

In the power control sector, the first half of 2026 was mainly dedicated to supporting and consolidating the new series of advanced GRC power controllers, which were launched in the last months of 2025 and well received by the market. At the same time, the development of new platform sizes and functionalities was launched, including integrated smart load management (GSLM) and new diagnostic functionalities based on the Digital Twin concept.

Activities to complete the range of GRZ three -phase static relays also continued, with the introduction of analogue control and diagnostic functions for detecting partial load breakage.

The activities to develop the GPC series were also particularly significant. Through a structured programme of experimental tests and validation, the maximum current that can be managed by the devices was increased from 600 A to 870 A. The new high -current models will be available for sale from October 2026.

At the beginning of 2026, the first local Research and Development unit was established at the Shanghai headquarters of Gefran Automation Technology. The unit focuses specifically on static units.

In this context, a cost -optimised version of the GQ single -phase static relay, called GQe, was designed, mainly for the Asian plastics and electricity distribution markets. The product was presented at the Chinaplast 2026 trade fair and its commercial launch is scheduled for September 2026.

As part of process control, the communication options of the Performance series continued to be expanded, culminating in the release of the PROFINET protocol, which expands the possibilities of integration in modern industrial automation systems. The main activities of the Research and Development team are however focused on creating the new modular and expandable control platform, designed to manage from 2 to 64 control channels. The new architecture will provide the technological basis to support the grow th and consolidation of applications in the Semiconductor, Plastics and Metal & Glass vertical markets, ensuring greater flexibility, scalability and configuration capacity compared to currently available solutions.

14 Half-yearly financial report as at 30 June 2026 Information on shareholders and stock

performance

On 30 June 2026, the subscribed and paid -up share capital was 14,400,000.00 Euro, divided into 14,400,000 ordinary shares, with a nominal value of 1.00 Euro per share. No further financial instruments have been issued.

STRUCTURE OF SHARE CAPITAL

Type of

shares No. of shares % of share capital Listed Rights and

obligations

Ordinary

shares 14,400,000 100 Euronext STAR

MILAN ordinary

Shareholder structure

The Parent Company Gefran S.p.A. has been listed on the Milan Stock Exchange since 9 June 1998, and in 2001 joined the STAR (Segmento Titoli con Alti Requisiti) segment of the Automated Stock Market for small to mid -sized companies that meet specific transparency, liquidity and corporate governance requirements. On 31 January 2005 this segment was renamed ALL STARS , taking on the name FTSE Italia STAR following the 1 June 2009 merger of Borsa Italiana with the London Stock Exchange before being given its current name, Euronext STAR Milan .

As a result of the transaction that took place on 19 September 2025, Anima SGR now holds a significant stake in Gefran S.p.A., the Parent Company of the Gefran Group.

Gefran Group 15 Share performance and volumes traded The performance of the stock and volumes traded in the last 12 months are summarised below:

16 Half-yearly financial report as at 30 June 2026 Dealings with related parties On 12 November 2010, the Board of Directors of Gefran S.p.A. approved the Internal Procedure for Dealings with Related Parties , in accordance with Consob Resolution no. 17221 of 12 March 2010. The procedure in question was subsequently updated to implement the new provisions of EU Directive 2017/828 (so -called “Shareholders ’ Rights II ”), which was transposed into Italian law by Italian Legislative Decree no. 49 of 2019, with regard to primary legislation, and by Consob Resolution no. 21624 of 10 December 2020, with regard to secondary legislation.

This document, the current version of which was approved on 12 February 2026 by the Board of Directors of Gefran S.p.A., is published in the section “Investor/Governance/Documents, procedures and shareholders ’ agreements ” of the Company ’s website, available at https://www.gefran.com/governance/documents -and-procedures/ .

The Procedure is based, inter alia, on the following general principles:

- ensuring the essential and procedural transparency and probity of dealings with related

parties;

- providing the Board of Directors and the Board of Statutory Auditors with an appropriate assessment, decision -making and control tool regarding transactions with related parties.

It is structured as follows:

- First section : definitions (related parties, significant and insignificant transactions, transactions of negligible amount, etc.).

- Second section : procedures to approve significant and insignificant transactions, exemptions.

- Third section : obligations to disclose and supervise compliance with the procedure.

Please refer to Note 30 of the Specific explanatory notes to the condensed half -yearly consolidated financial statements for details of the transactions between Group companies and related parties.

Gefran Group 17 Alternative performance indicators In addition to the standard financial schedules and indicators required under IFRS, this document includes reclassified schedules and alternative performance indicators. These are intended to enable a better assessment of the Group ’s economic and financial management. However, these tables and indicators must not be considered as a substitute for those required under IFRS.

Specifically, the alternative indicators used in the notes to the income statement are:

- Added value : the direct margin resulting from revenues, including only direct material, gross of other production costs, such as personnel costs, costs for services and other

miscellaneous costs;

- EBITDA : EBIT before depreciation, amortisation and impairment. The purpose of this indicator is to present the Group ’s operating profitability before the main non -monetary

items;

- EBIT : EBIT before financial management and taxes. The purpose of this indicator is to present the Group ’s operating profitability.

The alternative indicators used in the notes to the reclassified statement of financial position include:

- Net non -current assets : the algebraic sum of the following items in the statement of

financial position:

o Goodwill

o Intangible assets o Property, plant, machinery and tools o Shareholdings valued at equity o Equity investments in other companies o Receivables and other non -current assets o Deferred tax assets

- Working capital : the algebraic sum of the following items in the statement of financial

position:

o Inventories

o Trade receivables o Trade payables o Other assets o Tax receivables o Current provisions o Tax payables o Other liabilities

- Net invested capital : the algebraic sum of net fixed assets, working capital and provisions

- Net financial position : the algebraic sum of the following items:

o Medium to long -term financial payables o Short -term financial payables o Financial liabilities for derivatives o Financial assets for derivatives o Non-current financial assets o Cash and cash equivalents and short -term financial receivables

18 Half-yearly financial report as at 30 June 2026

Disclosure simplification

On 1 October 2012, the Board of Directors of Gefran S.p.A. resolved to make the election for disclosure simplification envisaged in article 70, paragraph 8, and article 71, paragraph 1 -bis, of Consob Regulation no. 11971/1999 as amended.

Gefran Group 19

Report on operations -

Information on activities

20 Half-yearly financial report as at 30 June 2026 Gefran consolidated results Consolidated income statement for the second quarter The income statement for the second quarter of 2026 is shown below, in comparison with the income statement for the same period in 2025.

2Q 2026 2Q 2025 Change 2026 -2025 (Euro /000) Total Total Value %

a Revenues 37,483 35,713 1,770 5.0% b Increases for internal work 690 520 170 32.7% c Consumption of materials and products 11,396 11,215 181 1.6% d Added Value (a+b -c) 26,777 25,018 1,759 7.0% e Other operating costs 6,530 5,790 740 12.8% f Personnel costs 14,130 13,300 830 6.2% g EBITDA (d -e-f) 6,117 5,928 189 3.2% h Depreciation, amortisation and impairment 2,095 2,015 80 4.0% i EBIT (g -h) 4,022 3,913 109 2.8% l Gains/(Losses) from financial assets and liabilities (8) (505) 497 98.4% m Gains/(Losses) from shareholdings valued at equity 10 (9) 19 211.1% n Profit (loss) before tax (i±l±m) 4,024 3,399 625 18.4% o Taxes (987) (852) (135) -15.8% p Net profit (loss) (n±o) 3,037 2,547 490 19.2%

Attributable to:

Group 3,037 2,533 504 19.9% Third parties - 14 (14) -100.0% Revenues in the second quarter of 2026 amounted to 37,483 thousand Euro, as compared to 35,713 thousand Euro in the same period of the previous year, up by 1,770 thousand Euro (equal to 5.0%).

Exchange rate fluctuations had a negative effect on the quarter, estima ted at 484 thousand Euro.

Net of this effect, revenues would therefore increase by 6.3% compared with the comparative quarter.

An analysis of order intake for the quarter, amounting to 38,648 thousand Euro, shows a total 11.6% increase compared with the figure for the same quarter of 2025, mainly due to orders received for the product lines in the automation components segment (wh ich posted a 29.1% increase compared with the second quarter of 2025). Order intake data for the sensors segment was positive, albeit to a lesser extent (up 2.8% compared with the same quarter of the previous year).

The table below shows a breakdown of revenues in the second quarter by geographical region.

Gefran Group 21 (Euro /000) 2Q 2026 2Q 2025 Change 2026 -2025 Value % Value % Value %

Italy 12,362 33.0% 11,672 32.7% 690 5.9%

European

Union 8,619 23.0% 8,681 24.3% (62) -0.7% Europe non -EU 1,011 2.7% 979 2.7% 32 3.3% North America 3,155 8.4% 3,243 9.1% (88) -2.7% South America 1,532 4.1% 1,463 4.1% 69 4.7% Asia 10,735 28.6% 9,617 26.9% 1,118 11.6% Rest of the world 69 0.2% 58 0.2% 11 19.0% Total 37,483 100% 35,713 100% 1,770 5.0%

The breakdown of revenues for the quarter by geographical region shows an increase in revenues generated on the domestic market (5.9% compared with the second quarter of 2025). Good performance was also recorded in Asia (11.6 % growth in revenues compared to the second quarter of 20 25), despite the area being affected by exchange rate fluctuations (net of this effect, the increase would be 15.2 %). Revenues in America, another area served by the Group, were essentially in line with the comparative quarter, and were also affected by t he negative impact of the exchange rate trend (without this effect, a 2.7% increase would be recorded).

Below is a breakdown of revenues in the second quarter by business area in comparison with the same period in the previous year.

(Euro /000) 2Q 2026 2Q 2025 Change 2026 -2025 Value % Value % Value %

Sensors 24,121 64.4% 23,471 65.7% 650 2.8%

Automation

components 15,974 42.6% 14,308 40.1% 1,666 11.6% Eliminations (2,612) -7.0% (2,066) -5.8% (546) 26.4% Total 37,483 100% 35,713 100% 1,770 5.0%

22 Half-yearly financial report as at 30 June 2026 Revenues generated by the automation components segment increased (by 11.6%) compared to the second quarter of 20 25. This segment includes the operations of CZ Elettronica S.r.l., which joined the Gefran Group in April 2025 and is now fully operational. Revenues generated by the sensors segment during the quarter were also higher (by 2.8%) than the comparative period . For further details, see the Business areas section.

Increases for internal work in the second quarter of 2026 amounted to 690 thousand Euro (520 thousand Euro in the second quarter of 2025 ). This item represents the new product development costs incurred in the period that have been capitalised.

Added value in the quarter amounted to 26,777 thousand Euro (25,018 thousand Euro in the same quarter of 2025), corresponding to 71.4% of revenues (70.1% in the second quarter of 2025). The growth in added value, totalling 1,759 thousand Euro, is mainly attributable to the increase in sales (to which CZ Elettronica S.r.l., which joined the Group in April 2025 and is now fully integrated, also contributed). Average margins also improved, due to a different product and geographical mix compared with the same period in the previous year.

Other operating costs in the second quarter of 2026 amounted to 6,530 thousand Euro, an increase of 740 thousand Euro over the figure for the second quarter of 2025, absorbing 17.4% of revenues (16.2% in the second quarter of 2025). Overall, the change is due to higher costs for maintenance, advertising and trade fairs, travel, as well as greater use of outsourced processing and services. Part of the increase is offset by lower costs for staff sel ection.

Personnel costs in the quarter, equal to 14,130 thousand Euro, were 830 thousand Euro higher than in the comparative period of 2025, when they totalled 13,300 thousand Euro. They absorbed 37.7% of revenues (37.2% in the second quarter of 2025 ). For details on the workforce and its changes, please see the Human Resources section.

EBITDA in the second quarter of 2026 amounted to 6,117 thousand Euro (5,928 thousand Euro in the same quarter of 2025), posting a 189 thousand Euro increase over the second quarter of 2025.

It corresponds to 16.3% of revenues (16.6% of revenues in the second qua rter of 2025). Operating costs, which are higher than those recorded in the comparative period, are offset by the higher added value, in view of the increase in revenues in the quarter.

Depreciation, amortisation and impairment amounted to 2,095 thousand Euro, compared with 2,015 thousand Euro in the same period of the previous year, reflecting an increase of 80 thousand Euro.

EBIT in the second quarter of 2026 was positive by 4,022 thousand Euro (10.7% of revenues), as compared to an EBIT of 3,913 thousand Euro in the same period in 2025 (11.0% of revenues), an increase of 109 thousand Euro. The change is essentially the result of the same dynamics illustrated for EBITDA.

Losses from financial assets/liabilities in the second quarter of 2026 amounted to 8 thousand Euro (in the second quarter of 2025, losses of 505 thousand Euro were recorded), including:

- financial income of 145 thousand Euro, including 141 Euro deriving from cash management (overall 184 thousand Euro in the second quarter of 2025);

- financial charges linked with the Group ’s indebtedness of 149 thousand Euro, which were lower than in the second quarter of 2025, when they totalled 217 thousand Euro;

- exchange gains from foreign currency transactions of 21 thousand Euro, compared with the second quarter of 2025 when losses were recorded in the amount of 449 thousand Euro.

Gefran Group 23 Gains from shareholdings valued at equity in the quarter, amounting to 10 thousand Euro, reflect the results reported by the subsidiary Axel S.r.l. Losses charged in the second quarter of 2025 totalled 9 thousand Euro.

Taxes during the quarter had a negative balance on the whole and amounted to 987 thousand Euro (on the whole negative by 852 thousand Euro in the second quarter of 2025). They consist of:

- negative current taxes of 978 thousand Euro (negative for the amount of 858 thousand Euro in the second quarter of 2025);

- deferred tax assets and liabilities, on the whole negative for the amount of 9 thousand Euro (positive for the amount of 6 thousand Euro in the second quarter of 2025).

The net profit in the second quarter of 2026 amounted to 3,037 thousand Euro, compared with a profit of 2,547 thousand Euro in the same period of the previous year. The change, positive by 490 thousand Euro, pertains to the EBIT increase and to financial operations, onl y partially affected by tax operations.

It should be noted that the net profit for the second quarter of 2026 is entirely attributable to the Gefran Group, following the acquisition of the remaining 40% of the shares in CZ Elettronica S.r.l on 23 February 2026 (the consideration of 580 Euro was recognised among payables at 31 December 2025, in accordance with IAS 32, cancelling minority interests). On the other hand, with reference to the acquisition of 60% of the shares in CZ Elettronica S.r.l. in April 2025, a minority interest of 14 thousand Euro was recorded in the second quarter of 2025.

Progressive Consolidated Income Statement The Group ’s results at 30 June 2026 are shown below, compared with those reported at 30 June 2025.

30 June

2026 30 June 2025 Change 2026 -2025 (Euro /000) Total Total Value %

a Revenues 73,815 72,155 1,660 2.3% b Increases for internal work 1,310 917 393 42.9% c Consumption of materials and products 21,585 21,367 218 1.0% d Added Value (a+b -c) 53,540 51,705 1,835 3.5% e Other operating costs 12,812 11,945 867 7.3% f Personnel costs 27,546 25,996 1,550 6.0% g EBITDA (d -e-f) 13,182 13,764 (582) -4.2% h Depreciation, amortisation and impairment 4,189 3,984 205 5.1% i EBIT (g -h) 8,993 9,780 (787) -8.0% l Gains/(Losses) from financial assets and liabilities 174 (753) 927 123.1% m Gains/(Losses) from shareholdings valued at equity 15 (5) 20 -400.0% n Profit (loss) before tax (i±l±m) 9,182 9,022 160 1.8% o Taxes (2,438) (2,390) (48) -2.0% p Net profit (loss) (n±o) 6,744 6,632 112 1.7%

Attributable to:

Group 6,744 6,618 126 1.9% Third parties - 14 (14) -100.0%

24 Half-yearly financial report as at 30 June 2026 Revenues at 30 June 2026 amounted to 73,815 thousand Euro, compared to 72,155 thousand Euro at 30 June 2025, up by 1,660 thousand Euro (2.3% ). The change reflects the negative effect of foreign currency trends, estimated at 958 thousand Euro. Net of this effect, there would be a more substantial increase in revenues compared to the comparative period (3.6%), only partly due to the higher reven ues contributed by the subsidiary CZ Elettronica S.r.l. (up by 337 thousand Euro compared to the first half of 2025), which joined the Gefran Group in April 2025 and is now fully integrated.

Order intake in the first half of 2026 amounted to 75,936 thousand Euro. When analysing the data compared to the same period in 2025, a total 5.2% increase can be noted, attributable to an increase in orders received for the product lines of the automation components segment (a 16.1% increase compared to the data for the first half of 2025 , also thanks to the contribution of 1,614 thousand Euro made by the higher orders received by the subsidiary CZ Elettronica S.r.l., which joined the Gefran Group in the second quarter of 2025). For the product lines in the sensor segment, order intake was slightly below the first half of 2025 (down 0.6%).

The backlog at the end of the first half is indicative of growth, both compared with the figure at 31 December 2025 (+8,6%) and with the same figure at 30 June 2025 (+10.7%).

The table below shows a breakdown of revenues in the first half by geographical region.

(Euro /000) 30 June 2026 30 June 2025 Change 2026 -2025

Value %

Value % Value %

Italy 24,054 32.6% 23,099 32.0% 955 4.1% European Union 18,166 24.6% 18,701 25.9% (535) -2.9% Europe non -EU 2,505 3.4% 1,980 2.7% 525 26.5% North America 6,188 8.4% 6,624 9.2% (436) -6.6% South America 3,044 4.1% 3,103 4.3% (59) -1.9% Asia 19,715 26.7% 18,411 25.5% 1,304 7.1% Rest of the world 143 0.2% 237 0.3% (94) -39.7% Total 73,815 100% 72,155 100% 1,660 2.3%

Gefran Group 25 The breakdown of revenues in the first half by geographical region confirms the trend already seen in 2025, with an increase in revenues generated on the domestic market (4.1% higher than on 30 June 2025). Growth was also recorded in Asia (7.1 % of revenues compared to the first half of 2025), despite the area being particularly affected by exchange rate fluctuations (net of this effect, the increase would be 10.6 %). Revenues in the Americas declined during the quarter: this is another area served by the Group that is affected by adv erse currency fluctuations (the overall decrease was 5.1% which, however, without this effect, would be more limited to 2%). Finally, the increase in revenues in non -EU European countries (Great Britain in particular) allowed the Group to close the gap res ulting from the contraction in the EU area.

Below is a breakdown of revenues by business area in comparison with the same period in the previous year.

(Euro /000) 30 June 2026 30 June 2025 Change 2026 -2025 Value % Value % Value %

Sensors 47,862 64.8% 47,228 65.5% 634 1.3%

Automation

components 31,091 42.1% 29,072 40.3% 2,019 6.9% Eliminations (5,138) -7.0% (4,145) -5.7% (993) 24.0% Total 73,815 100% 72,155 100% 1,660 2.3% Revenues generated by the automation components segment increased by 6.9% compared to the first half of 2025. This segment includes the operations of CZ Elettronica S.r.l., which joined the Gefran Group in April 2025 and thus contributed to the increase. R evenues generated by the sensors segment also increased, albeit more slightly (1.3%). For further details, see the Business areas section.

Increases for internal work amounted to 1,310 thousand Euro, up by 393 thousand Euro over the figure recorded in the first half of 2025. This item mainly relates to new product development costs, incurred by the Gefran Group ’s research and development centres and subsequently capitalised.

Added value at 30 June 2026 amounted to 53,540 thousand Euro, corresponding to 72.5% of revenues (51,705 thousand Euro in the same period of 2025, or 71.7% of revenues), resulting in a 0.9% increase. Said growth in added value was determined by both the increase in higher sales revenues and better margins, resulting from the different product and geographical mix compared to the first half of 2025. The great er capitalisations and the contribution of CZ Elettronica S.r.l. (acquired in April 2025) also had a positive impact on the overall change in the item compared to the same period of the previous year.

Other operating costs amounted to 12,812 thousand Euro, an increase of 867 thousand Euro over the figure for the first half of 2025, absorbing 17.4% of revenues (16.6% in the same half of the previous year). The change is due to higher costs for outsourced processing and services, for maintenanc e, advertising and trade fairs, travel and professional consulting. The lower costs of recruitment services partially offset the deficit.

Personnel costs in the half -year, equal to 27,546 thousand Euro, increased by 1,550 thousand Euro compared to the same period in the previous year, when this item amounted to 25,996 thousand Euro. As a percentage of revenues, the ratio was 37.3% (36.0% in the first half of 2025). The increase in these costs over the comparative period is attributable to an increase in the workforce to strengthen the functions supporting the execution of the Group ’s strategy. Gefran now has 741 employees (average for the half -year), while the average number of employees in the same period of the previous year was 722. For further details, see the Human resources section.

26 Half-yearly financial report as at 30 June 2026 EBITDA as at 30 June 2026 was positive by 13,182 thousand Euro (13,764 thousand Euro in the first half of 2025) and corresponds to 17.9% of revenues (19.1% of revenues as at 30 June 2025).

The decrease compared with the same period of the previous year (totallin g 582 thousand Euro) is essentially due to higher operating costs than in the comparative period, as described above.

Depreciation, amortisation and impairment amounted to 4,189 thousand Euro, compared with 3,984 thousand Euro in the same period of 2025, reflecting an increase of 205 thousand Euro.

EBIT in the period ended 30 June 2026 was positive at 8,993 thousand Euro (12.2% of revenues), compared with 9,780 thousand Euro at 30 June 2025 (13.6% of revenues), a decrease of 787 thousand Euro. The change is the result of the same dynamics illustrated for EBITDA, with the increase in depreciation/amortisation also contributing to it and further eroding the operating margin.

Financial assets/liabilities in the first half of 2026 posted income totalling 174 thousand Euro (at 30 June 2025 costs totalling 753 thousand Euro were entered), and included:

- financial income of 311 thousand Euro, essentially deriving from liquidity management (totalling 457 thousand Euro in the first half of 2025);

- financial charges linked with the Group ’s indebtedness, totalling 307 thousand Euro, down over the first half of 2025 (408 thousand Euro);

- exchange gains from foreign currency transactions of 177 thousand Euro (the figure for the first half of the previous year was negative at 757 thousand Euro).

Income from shareholdings valued at equity reflects the results achieved by the affiliate Axel S.r.l.

and totalled 15 thousand Euro (costs totalling 5 thousand Euro were recorded in the first half of 2025).

Taxes were negative overall and amounted to 2,438 thousand Euro (negative overall by 2,390 thousand Euro in the first half of 2025). They consist of:

- negative current taxes of 2,570 thousand Euro (2,453 thousand Euro in the first half of 2025);

- deferred tax assets and liabilities, on the whole positive for the amount of 132 thousand Euro (positive for the amount of 63 thousand Euro at 30 June 2025).

The Group net profit at 30 June 2026 amounted to 6,744 thousand Euro, compared with a profit of 6,632 thousand Euro as at 30 June 2025. The change, positive by 112 thousand Euro, relates to the performance of financial management, which offsets the decrease in EBIT.

It should also be noted that the net profit for the first half of 2026 is entirely attributable to the Gefran Group, following the acquisition of the remaining 40% of the shares in CZ Elettronica S.r.l on 23 February 2026 (the consideration of 580 Euro was recognised among payables at 31 December 2025, in accordance with IAS 32, cancelling minority interests). On the other hand, with reference to the acquisition of 60% of the shares in CZ Elettronica S.r.l. in April 2025, a minority interest of 14 thousand Euro was recorded in the first half of 2025.

Gefran Group 27 Reclassified consolidated statement of financial position at 30 June 2026 The Gefran Group ’s reclassified consolidated statement of financial position at 30 June 2026 is

presented below:

(Euro /000) 30 June 2026 31 December 2025 Value % Value %

Intangible assets 14,686 19.0 14,060 20.7 Tangible assets 46,407 60.2 41,961 61.7 Other non -current assets 9,003 11.7 8,851 13.0 Net non -current assets 70,096 90.9 64,872 95.4

Inventories 17,656 22.9 15,182 22.3 Trade receivables 31,135 40.4 26,016 38.3 Trade payables (25,590) (33.2) (21,571) (31.7) Other assets/liabilities (11,726) (15.2) (12,163) (17.9) Working capital 11,475 14.9 7,464 11.0

Provisions for risks and future liabilities (1,166) (1.5) (1,156) (1.7) Deferred tax provisions (1,011) (1.3) (985) (1.4) Employee benefits (2,283) (3.0) (2,208) (3.2)

Net invested capital 77,111 100.0 67,987 100.0

Group Shareholders ’ equity 102,661 133.1 100,829 148.3 Shareholders ’ equity of minority interests - - - -

Shareholders ’ equity 102,661 133.1 100,829 148.3

Non-current financial payables 9,640 12.5 11,697 17.2 Current financial payables 4,558 5.9 4,921 7.2 Financial payables for IFRS 16 leases (current and non -current) 3,602 4.7 3,609 5.3 Financial liabilities for derivatives (current and non -current) 66 0.1 178 0.3 Financial assets for derivatives (current and non -current) - - (5) (0.0) Other non -current financial investments (100) (0.1) (102) (0.2) Cash and cash equivalents and current financial receivables (43,316) (56.2) (53,140) (78.2) Net debt relating to operations (25,550) (33.1) (32,842) (48.3)

Total sources of financing 77,111 100.0 67,987 100.0 Net non -current assets at 30 June 2026 totalled 70,096 thousand Euro, compared with 64,872 thousand Euro at 31 December 2025. The individual items are described below.

Intangible assets, equal to 14,686 thousand Euro, increased overall by 626 thousand Euro. This change includes the capitalisation of development costs (1,238 thousand Euro) and new investments (296 thousand Euro), as well as decreases due to amortisation (1,007 thousand Euro). Exchange rate fluctuations had a net positive effect of 101 thousand Euro.

28 Half-yearly financial report as at 30 June 2026 Tangible assets, equal to 46,407 thousand Euro, increased compared to 31 December 2025 by 4,446 thousand Euro. Investments during the first six months of the year (6,524 thousand Euro) were offset by depreciation in the period (2,480 thousand Euro). This item also includes the value of the right of use recognised in accordance with IFRS 16. The tota l figure increased, compared to the closing figure of the previous period, as a result of the signing of new contracts or their renewal (726 thousand Euro), offset by depreciation (702 thousand Euro) and decreases due to advance termination of contracts (7 1 thousand Euro). Exchange rate fluctuations had a net positive effect overall of 380 thousand Euro.

Other non -current assets at 30 June 2026 amounted to 9,003 thousand Euro (8,851 thousand Euro at 31 December 2025), up by 152 thousand Euro.

Working capital at 30 June 2026 totalled 11,475 thousand Euro, compared to 7,464 thousand Euro at 31 December 2025, reflecting a total increase of 4,011 thousand Euro. The main changes in the individual items are shown below.

Inventories rose from 15,182 thousand Euro on 31 December 2025 to 17,656 thousand Euro on 30 June 2026, posting a net increase of 2,474 thousand Euro. Raw material stocks increased (618 thousand Euro) as well as those of semi -finished products and finished products (1,170 thousand Euro and 686 thousand Euro, respectively) to adequately meet requests for delivery to customers scheduled for the following quarter; the change includes the exchange rate effect, which was positive overall by 308 thousand Euro.

Trade receivables totalled 31,135 thousand Euro, an increase of 5,119 thousand Euro compared to 31 December 2025 , reflecting the growth in revenues in the half -year compared to revenues in the third and fourth quarters of the previous year. The Group analyses receivables in a timely manner, considering various factors (geographical region, business area, solvency of individual customers).

These checks have not identified any positions that might jeopardise their collectability.

Trade payables totalled 25,590 thousand Euro, up by 4,019 thousand Euro compared to 31 December 2025.

Other net liabilities at 30 June 2026 totalled 11,726 thousand Euro (12,163 thousand Euro at 31 December 2025). They include, among other items, payables to employees and social security institutions, as well as direct and indirect tax receivables and payables.

The provisions for risks and future liabilities totalled 1,166 thousand Euro and were essentially aligned with the figure for 31 December 2025 , when they amounted to 1,156 thousand Euro. This item includes the product warranty provision as well as funds for legal disputes and miscellaneous risks.

Employee benefits amounted to 2,283 thousand Euro, compared with 2,208 thousand Euro on 31 December 2025 . This item includes the post -employment benefit reserve (2,231 thousand Euro), in addition to residual payables to employees who have signed agreements that protect the Company from competing activities, known as Non -competition agreements (52 thousand Eu ro).

Shareholders ’ equity at 30 June 2026 amounted to 102,661 thousand Euro, up by 1,832 thousand Euro since the end of 2025. The change is driven by the recognition of the profit for the period, amounting to 6,744 thousand Euro, and by the movement of the translation reserve, positive for 1,127 thousand Euro. The payment of dividends on the results of the previous year, for 6,107 thousand Euro, absorbs part of the increase.

Gefran Group 29 The following schedule reconciles the shareholders ’ equity and result for the period of the Parent Company with the related amounts reported in the consolidated financial statements:

(Euro /000) 30 June 2026 31 December 2025

Shareholders ’

equity Result for the period Shareholders ’ equity Result for

the period

Parent Company shareholders ’ equity and operating result 90,187 7,944 88,283 10,107 Shareholders ’ equity and operating result of the consolidated companies 41,192 2,888 41,143 4,965 Elimination of the carrying value of consolidated investments (31,556) - (31,405) 181 Goodwill 3,896 3,881 Elimination of the effects of transactions conducted between consolidated companies (1,058) (4,088) (1,073) (5,384) Group share of shareholders ’ equity and operating result 102,661 6,744 100,829 9,869

Minorities ’ share of shareholders ’ equity and operating result - - - -

Shareholders ’ equity and operating result 102,661 6,744 100,829 9,869

The net financial position at 30 June 2026 was positive and amounted to 25,550 thousand Euro, compared with the figure recorded at the end of the previous year, which was positive by 32,842 thousand Euro.

The total comprises short -term cash and cash equivalents of 37,529 thousand Euro and medium/long -term debt of 11,979 thousand Euro.

This item also includes the effect of applying IFRS 16, leading to the recording of financial payables in the amount of 3,602 thousand Euro as at 30 June 2026, of which 1,229 thousand Euro reclassified as current and 2,373 thousand Euro as non -current (ove rall 3,609 thousand Euro as at 31 December 2025, of which 1,230 thousand Euro as short -term and 2,379 thousand Euro as medium/long -term).

No new loans were arranged during the first six months of the year.

The change in net financial position, down by 7,292 thousand Euro compared to 31 December 2025 , mainly reflects the positive cashflow generated by ordinary operations (9,071 thousand Euro), absorbed by the disbursements for the technical investments made during the first six months of the year (8,058 thousand Euro) and by the price pad for the acqu isition of the residual 40% of the shares in CZ Elettronica S.r.l. (580 thousand Euro), as a result of which Gefran now holds 100% of the Company (operation described in the Significant events during the first half of 2026 ). The payment of dividends (6,107 thousand Euro), taxes (1,006 thousand Euro), leases and interest (752 thousand Euro and 251 thousand Euro, respectively) contributed to the decrease in financial resources. In addition to the flows described above, the ch ange in the Group ’s available financial position as at 30 June 2026 includes the positive effect of the exchange rate difference for foreign currencies compared with the previous year (estimated overall at 468 thousand Euro).

30 Half-yearly financial report as at 30 June 2026 This item is analysed below:

(Euro /000) 30 June 2026 31 December 2025 Change

Cash and cash equivalents and current financial receivables 43,316 53,140 (9,824) Current financial payables (4,558) (4,921) 363 Current financial payables for IFRS 16 leases (1,229) (1,230) 1 (Debt)/short -term cash and cash equivalents 37,529 46,989 (9,460)

Non-current financial payables (9,640) (11,697) 2,057 Non-current financial payables for IFRS 16 leases (2,373) (2,379) 6 Non-current financial liabilities for derivatives (66) (178) 112 Non-current financial assets for derivatives - 5 (5) Other non -current financial investments 100 102 (2) (Debt)/medium -/long -term cash and cash equivalents (11,979) (14,147) 2,168

Net financial position 25,550 32,842 (7,292) It should be noted that the “Net financial position ” table includes “Other non -current financial investments ” which comprise, among other things, the item “Financial pre -paid expenses ” (nil at 30 June 2026 and equal to 2 thousand Euro at 31 December 2025). Net of this item and for the purposes of Regulation (EU) 2017/1129, the positive net financial position as at 30 June 2026 was positive at 25,550 thousand Euro, while at 31 December 2 025 it was positive at 32,840 thousand Euro.

Consolidated cash flow statement for the period ended 30 June 2026 The Gefran Group ’s consolidated cash flow statement as at 30 June 2026 showed a negative net change in cash at hand of 9,824 thousand Euro (it was negative and amounted to 9,396 thousand Euro as at 30 June 2025). The change was as follows:

Gefran Group 31 (Euro /000) 30 June 2026 30 June 2025

A) Cash and cash equivalents at the start of the period 53,140 59,629

B) Cash flow generated by (used in) operations in the period 9,071 10,335

C) Cash flow generated by (used in) investment activities (8,682) (7,820)

D) Free Cash Flow (B+C) 389 2,515

E) Cash flow generated by (used in) financing activities (10,681) (10,763)

F) Cash flow from continuing operations (D+E) (10,292) (8,248)

G) Exchange rate translation differences on cash at hand 468 (1,148)

H) Net change in cash at hand (F+G) (9,824) (9,396)

I) Cash and cash equivalents at the end of the period (A+H) 43,316 50,233 Cash flow from operations for the period was positive overall at 9,071 thousand Euro; in particular, operations in the first half of 2026, netted of the effect of provisions, depreciation/amortisation and financial items, generated cash of 14,510 thousand Euro (14,749 thousand Euro in the first half of 2025). In the same period, the net change in other assets and liabilities absorbed resources of 1,209 thousand Euro (compared with 1,078 thousand Euro in the first half of 2025 ), and the management of working capital absorbed cash on hand of 3,962 thousand Euro (compared with 3,013 thousand Euro in the same period of the previous year). The changes in provisions (risks and future liabilities, deferred taxes) absorbed 268 thousan d Euro in cash (320 thousand Euro in the first six months of 2025).

With regard to investing activities, investments of 8,058 thousand Euro were made in the first half of 2026 (3,088 thousand Euro in the first six months of 2025 ). It should also be noted that, as described under Significant events during the first half of 2026 , Gefran S.p.A. exercised the option already provided for in the agreements with the sellers, by acquiring the remaining 40% of the shares in CZ Elettronica S.r.l., thereby holding 100% of the Company, for a consideration of 580 thousand Euro.

In the light of the effects described above, free cash flow (operating cash flow net of investing activities) at the end of the half year amounted to positive 389 thousand Euro (positive 2,515 thousand Euro at 30 June 2025).

Financing activities absorbed resources totalling 10,681 thousand Euro (a total of 10,763 thousand Euro in the first half of 2025), of which 2,562 thousand Euro related to the repayment of non -current financial payables (2,557 thousand Euro as of 30 June 2 025) and 6,107 thousand Euro for dividend payment (an amount in line with the figure recorded in the first half of 2025).

32 Half-yearly financial report as at 30 June 2026

Business areas

The following sections comment on the performance of the individual business areas. To ensure correct interpretation of figures relating to the individual activities, it should be noted that:

- the business represents the sum of revenues and related costs of the Parent Company Gefran S.p.A. and of the Group subsidiaries;

- the figures for each business are provided gross of internal trade between different

businesses;

- the costs of central functions, which mainly pertain to Gefran S.p.A., are fully allocated to the businesses, where possible, and quantified according to actual use; they are otherwise divided according to economic -technical criteria.

Please refer to Note 10 of the Specific explanatory notes to the condensed half -yearly consolidated financial statements for an examination of the consolidated statement of financial position by business area.

1. Sensors business

Summary results

The table below shows the key economic figures:

(Euro /000) 30 June 2026 30 June 2025 Change 2026 -

2025 2Q 2026 2Q 2025 Change 2026 -

2025

Value % Value %

Revenues 47,862 47,228 634 1.3% 24,121 23,471 650 2.8%

EBITDA 9,911 11,437 (1,526) -13.3% 4,883 5,377 (494) -9.2%

% of revenues 20.7% 24.2%

20.2% 22.9%

EBIT 7,549 9,123 (1,574) -17.3% 3,692 4,210 (518) -12.3%

% of revenues 15.8% 19.3%

15.3% 17.9%

The revenues of the sensors business are analysed by geographical region below:

(Euro /000) 30 June 2026 30 June 2025 Change 2026 - 2025 Value % Value % Value %

Italy 11,140 23.3% 10,189 21.6% 951 9.3% Europe 13,936 29.1% 14,096 29.8% (160) -1.1% America 6,339 13.2% 7,050 14.9% (711) -10.1% Asia 16,366 34.2% 15,725 33.3% 641 4.1% Rest of the world 81 0.2% 168 0.4% (87) -51.8% Total 47,862 100% 47,228 100% 634 1.3%

Gefran Group 33

Business performance

Revenues from the business as at 30 June 2026 amounted to 47,862 thousand Euro, an increase compared to the figure as at 30 June 2025, which amounted to 47,228 thousand Euro, recording a percentage increase of 1.3% . Revenues from industrial pressure product ranges increased by 13.6% compared with the first half of the previous year, while sales of the Position and Melt lines decreased by 1.4% and 7.6%, respectively. It should also be noted that exchange rate fluctua tions had a negative impact on revenues in the first half of the year which, excluding this effect, would be 3% higher than in the same period of the previous year.

Analysing the various geographical regions, the sensors business posted a 9.3% increase in national revenues and a 4.1% increase in the Asia area (which, net of the negative effect of exchange rate fluctuations, would rise to 7.8%). Revenues went down, com pared to the first half of 2025, in Europe (by 1.1%) and America (by 10.1% overall, a deficit that is reduced to 7% when excluding the negative effect of currency trends).

Order intake for the sensors business in the first half of 2026 , totalling 46,936 thousand Euro, decreased by 0.6% over the figure for the same period of 2025. The backlog at 30 June 2026 was 2.7% lower than at 30 June 2025 and 10.6% lower than the closing figure of 2025.

Turning to the second quarter, revenues amounted to 24,121 thousand Euro, up by 2.8% compared with the same period in 2025 when they totalled 23,471 thousand Euro. The figure for the quarter is also influenced by currency dynamics, without which the increase in revenues compared to the same previous quarter would be 4.5%. The geographical regions that contributed to the increase were Italy and Asia.

EBITDA for the period ended 30 June 2026 amounted to 9,911 thousand Euro (20.7% of the business unit ’s revenues), largely positive but still down by 1,526 thousand Euro compared with the period ended 30 June 2025, when it was 11,437 thousand Euro (24.2% of revenues). The change is essentially attributable to the decrease in added value, as a result of the different product and customer mix (type and geographical region), only partly offset by higher capitalisation of research and development costs, as we ll as the increase in business management costs (both personnel costs and other operating costs) to support strategy implementation.

34 Half-yearly financial report as at 30 June 2026 EBIT as at 30 June 2026 amounted to 7,549 thousand Euro, equal to 15.8% of revenues, compared with an EBIT of 9,123 thousand Euro in the previous year (19.3% of revenues), a decrease of 1,574 thousand Euro. The change in the figure for the first half of 2026 compared to the same period in the previous year was mainly due to the same dynamics illustrated for EBITDA.

Comparing the figures by quarter, EBIT in the second quarter of 2026 amounted to 3,692 thousand Euro (15.3% of revenues), compared with 4,210 thousand Euro (17.9% of revenues) in the same quarter of 2025.

Investments

Investments in the first half of 2026 relating to the sensors business totalled 3,387 thousand Euro, including 803 thousand Euro in investments in “Intangible assets ”, 652 thousand Euro of which relating to the capitalisation of research and development costs for new products. The remainder related to the purchase of software programmes and licences as well as to the development of the company ’s management software.

Increases in “Tangible assets ” totalled 2,584 thousand Euro. These included strengthening the business ’s production lines through the installation of new (production and laboratory) equipment and the increase in the efficiency of the production departments, as well as renovating the buildings hosting both productive and commercial activities (2,354 thousand Euro invested in the Parent Company Gefran S.p.A., of which 1,383 thousand Euro invested in the production departments and 928 thousand Euro in buildings and plants).

2. Automation components

Summary results

The table below shows the key economic figures:

(Euro /000) 30 June 2026 30 June 2025 Change 2026 -

2025 2Q 2026 2Q 2025 Change 2026 -

2025

Value % Value %

Revenues 31,091 29,072 2,019 6.9% 15,974 14,308 1,666 11.6%

EBITDA 3,271 2,327 944 40.6% 1,234 551 683 124.0%

% of revenues 10.5% 8.0%

7.7% 3.9%

EBIT 1,444 657 787 119.8% 330 (297) 627 211.1%

% of revenues 4.6% 2.3%

2.1% -2.1%

Gefran Group 35 The revenues of the automation components business are analysed by geographical region below:

(Euro /000) 30 June 2026 30 June 2025 Change 2026 - 2025 Value % Value % Value %

Italy 17,668 56.8% 16,714 57.5% 954 5.7% Europe 6,809 21.9% 6,655 22.9% 154 2.3% America 2,940 9.5% 2,713 9.3% 227 8.4% Asia 3,612 11.6% 2,921 10.0% 691 23.7% Rest of the world 62 0.2% 69 0.2% (7) -10.1% Total 31,091 100% 29,072 100% 2,019 6.9%

Business performance

The revenues of the business unit in the period to 30 June 2026 amounted to 31,091 thousand Euro, up by 6.9% compared with those for the period ended 30 June 2025, when they amounted to 29,072 thousand Euro.

The higher revenues generated by CZ Elettronica S.r.l., a company that joined the Gefran Group in April 2025 and that is now fully operational, contributed to such increase (by 1.1%). Its operations fall within those of the business unit in question. Overa ll, revenues increased with regard to the Solutions and Process Control (13.3%), Power Control (8,9%) and Instruments (3.8%) ranges, while those relating to Programmable Automation were aligned. Sales of commercial products declined (by 23.1%). Finally, it should be noted that exchange rate fluctuations in the first half of 2026 had a negative effect on this item (estimated at 0.6%).

In the analysis of revenues by geographical region, as in the sensors segment, automation components also recorded an increase in the domestic market (by 5,7%). Up on the first half of 2025 were also revenues in Europe (2.3%) and in Asia (23.7%, which would be 26% net of the effect of foreign currency fluctuations). The Americas recovered (up 8.4% in the half -year), with such recovery being more substantial when excluding the negative effect of exchange rates (11.2%).

Order intake during the first six months of the year amounted to 29,000 thousand Euro and was 16.1% higher than in the same period of 2025. The backlog as at 30 June 2026 was higher than as at 30 June 2025 (33.6%) and also when compared to the end of 2025 (48%).

36 Half-yearly financial report as at 30 June 2026 Turning to the second quarter, revenues amounted to 15,974 thousand Euro, up by 11.6% compared with the same period in 2025 when they totalled 14,308 thousand Euro. The increase is widespread across all the geographical regions covered by the business reve nues, in particular Italy, America and Asia.

EBITDA for the period ended 30 June 2026 rose to 3,271 thousand Euro (equal to 10.5% of revenues), which was an improvement of 944 thousand Euro over the figure reported at 30 June 2025 of 2,327 thousand Euro (8.0% of revenues). The change is a result of higher revenues and higher added value, only partly affected by the increase in personnel costs linked to workforce strengthening.

EBIT in the first half of 2026 was positive at 1,444 thousand Euro (4.6% of revenues). By comparison, EBIT in the period to 30 June 2025 was positive at 657 thousand Euro (2.3% of revenues), showing an increase of 787 thousand Euro. The change is essentially attributable to the same dynamics illustrated for EBITDA and to the increase in depreciation/amortisation.

Comparing the figures by quarter, EBIT in the second quarter of 2026 was positive by 330 thousand Euro (2.1% of revenues), compared with the negative figure of 297 thousand Euro ( -2.1% of revenues) in the second quarter of 2025.

Investments

Investments in the first six months of 2026 amounted to 4,671 thousand Euro. Investments in “Intangible assets ” amounted to 731 thousand Euro, of which 586 thousand Euro referred to the capitalisation of development costs for the new range of static units and programmable automation units. The remainder related to the purchase of software programmes and licences as well as to the development of the company ’s management software.

Investments in “Tangible assets ” amounted to 3,940 thousand Euro, of which 3,844 thousand Euro were made by the Parent Company Gefran S.p.A. These were mainly intended both for the introduction of production machinery, aimed at increasing the capacity and production efficiency required for new products (2 78 thousand Euro), and for the upgrading of buildings and plants (for a total of 3,543 thousand Euro), and in particular for the upgrading and expansion of the new production and technological hub in Provaglio d ’Iseo, which will host the business ’s operational activities from 2027.

Gefran Group 37

Investments

Technical investments made by the Group during the first six months of 2026 totalled 8,058 thousand Euro (3,088 thousand Euro in the first half of 2025) and relate to:

- production and laboratory facilities, machinery and tools for the Group ’s Italian plants, totalling 1,667 thousand Euro (1,347 thousand Euro at 30 June 2025) of which 1,661 thousand Euro in the Parent Company and, in particular, 1,362 thousand Euro for the production departments of the sensors business;

- production and laboratory facilities, machinery and tools for the Group ’s foreign plants, totalling 192 thousand Euro (93 thousand Euro at 30 June 2025);

- upgrading of the buildings housing the activities of the Parent Company Gefran S.p.A. for a total of 4,471 thousand Euro, of which 3,906 thousand Euro related to the renovation and expansion of a building already owned in Provaglio d ’Iseo, Via Stazione Vecchia, which will become in 2027 the new production and technological hub as well as the headquarters of the Gefran Group (in the first six months of 2025, 354 thousand Euro were invested in the Parent Company ’s buildings);

- upgrading of the buildings and improvements to the premises housing the subsidiaries for 115 thousand Euro, of which 83 thousand Euro invested in the commercial subsidiary Gefran Asia in Singapore (as at 30 June 2025, 45 thousand Euro had been invested in buildings

abroad);

- renewal of electronic office machines and IT systems totalling 133 thousand Euro (123 thousand Euro at 30 June 2025);

- capitalisation of costs incurred in the period for new product development, totalling 1,238 thousand Euro (861 thousand Euro in the first half of 2025);

- investments in intangible assets amounting to 238 thousand Euro, mainly related to management software licences and SAP ERP development (265 thousand Euro in the first six months of 2025).

The investments carried out by the Group are summarised below by type and geographical region:

(Euro /000) 30 June 2026 30 June 2025

Intangible assets 1,534 1,126 Tangible assets 6,524 1,962 Total 8,058 3,088

30 June 2026 30 June 2025 (Euro /000) intangible assets and goodwill tangible assets intangible assets and goodwill tangible assets

Italy 1,302 6,125 1,021 1,675 European Union - 3 4 46 Europe non -EU 174 11 99 29 North America - 32 - 4 South America - 32 2 42 Asia 58 321 - 166 Total 1,534 6,524 1,126 1,962

38 Half-yearly financial report as at 30 June 2026

Human resources

Workforce

The Group ’s workforce at 30 June2026 totalled 733 employees, a decrease of 11 compared with the figure at 30 June 2025. It is specified that the acquisition of CZ Elettronica S.r.l. in April 2025 brought 23 employees into the Group (at the acquisition date). Compare d to the exact figure at the end of 2025 (748 employees), the workforce decreased by 15 units. The changes in the first six months of 2026 are detailed below:

- 19 people joined the Group, including 4 manual workers and 15 clerical staff;

- 34 people left the Group, including 6 manual workers, 27 clerical staff and 1 executive.

This change includes the hiring in Italy, at the beginning of 2026, of 4 workers previously hired by the organisation under a temporary employment contract.

As a result of the change in the first half -year, the Group ’s turnover rate, calculated on the average number of employees of 741, is 7.2%.

Gefran Group 39 Significant events during the first half of 2026

- On 12 February 2026, the Board of Directors of Gefran S.p.A. examined the preliminary consolidated results at 31 December 2025.

- On 23 February 2026, Gefran S.p.A. exercised (in advance) the option already provided for in the agreements with the sellers, by acquiring the remaining 40% of the shares in CZ Elettronica S.r.l., for a consideration of 580 thousand Euro, thereby holding 1 00% of the Company. It should be noted that the amount was recognised under payables as at 31 December 2025, in accordance with IAS 32, eliminating the minority interests.

The transaction allows Gefran to fully consolidate its control and further strengthen the Group ’s industrial and technological positioning, enhancing the expertise and know -how of C.Z.

Elettronica S.r.l. and also promoting strategic -operational integration in the organisation.

- On 12 March 2026, the Board of Directors of Gefran S.p.A. unanimously approved the annual financial statements, the consolidated financial statements and the Sustainability Report as at 31 December 2025.

The Board of Directors also resolved to propose to the Shareholders ’ Meeting to distribute a dividend of 0.43 Euro for each of the outstanding shares (net of own shares), using the retained earnings reserve and to allocate the remaining part of the 2025 profit to the retained earnings reserve, in line with the strategy aim ed at generating value for shareholders while safeguarding the Group ’s growth.

On the same occasion, it was resolved to propose to the Shareholders ’ Meeting to approve the authorisation to purchase and dispose of, in one or more instalments, a number of ordinary shares in the Company up to a maximum of 1,440,000.00 shares (equal to 10% of the company ’s share capital). The authorisation was requested for a period of 18 months from the date of the shareholders ’ resolution.

- On 23 April 2026, the Ordinary Shareholders ’ Meeting of Gefran S.p.A. resolved to:

o Approve the 2025 annual financial statements and distribute an ordinary dividend, gross of withholding taxes provided for by law, of 0.43 Euro per eligible share, by using the retained earnings reserve (ex -dividend date 4 May 2026, record date 5 May 2026 a nd payment from 6 May 2026). The remainder of the profit for the period will be allocated to the retained earnings reserve.

o Appoint the Board of Directors for the three -year period 2026 -2028, setting the number of its members at 9, in line with the previous three -year period. Maria Chiara Franceschetti, Andrea Franceschetti, Giovanna Franceschetti, Marcello Perini, Alessandra Maraffini, Enrico Zampedri, Cristina Mollis and Giorgio Metta were appointed to the majority list while Carlo Paris was appointed to the minority list. The newly -established Board will remain in office until the approval of the financial statements as at 31 December 2028.

o Authorise the Board of Directors to purchase a maximum of 1,440,000 own shares with a nominal value of 1 Euro each, within 18 months from the date of the Shareholders ’ Meeting.

40 Half-yearly financial report as at 30 June 2026 The Meeting, pursuant to Article 123 -ter of the Consolidated Law on Finance, also held a binding vote that approved the Group ’s 2026 Remuneration Policy and also held an advisory and non -

binding vote that approved its 2026 Remuneration Report.

Following the Shareholders ’ Meeting, the new Board of Directors met and appointed Maria Chiara Franceschetti as Chairwoman thereof, Giovanna Franceschetti as Vice Chairwoman and Marcello Perini as Chief Executive Officer. Marcello Perini was appointed Chief Executive Officer also un der the Corporate Governance Code. At the meeting, the independence requirements of the newly appointed Board were also checked: non -executive directors Alessandra Maraffini, Cristina Mollis, Enrico Zampedri, Giorgio Metta and Carlo Paris met the independe nce requirements; the Lead Independent Director is Cristina Mollis.

- On 14 May 2026, the Board of Directors of Gefran S.p.A. unanimously approved the consolidated results of the Group at 31 March 2026.

Significant events following the first half of 2026 Nothing to report.

Outlook

The international macroeconomic context continues to be characterised by a highly complex and uncertain environment. In the first half of 2026, global growth proved to be more resilient than expected, driven by the expansion of investments and demand relat ed to digital technologies and artificial intelligence. However, growth is still affected by geopolitical tensions, the risks of fragmentation of international trade and the persistence of inflationary pressures linked to energy prices, which affect global supply chains and industrial investments. The International Monetary Fund estimates 3.0% global economic growth for 2026, with a 3.4% acceleration in 2027. There are also ongoing pressures on energy and commodity prices, which continue to represent a sour ce of uncertainty for the global economic outlook.

In the Euro area, economic activity is continuing at a moderate pace. Geopolitical tensions and rising energy prices have led to a deterioration in growth prospects and an increase in inflation, affecting the confidence of households and businesses. Accord ing to the latest published projections, Euro area GDP is expected to grow by 0.8% in 2026, 1.2% in 2027 and 1.5% in 2028, while inflation is expected to be 3.0% in 2026 and then gradually decline towards the 2% target in subsequent years.

As for Italy, the Bank of Italy highlights still positive but contained economic growth. After a 0.3% increase in GDP in the first quarter, economic activity slowed in the spring, affected by weaker investment and consumption dynamics, penalised by interna tional uncertainty and rising energy costs. In the baseline scenario, Italian GDP is expected to grow by 0.5% in 2026, 0.4% in 2027 and 0.9% in 2028. There are still signs of strength in the labour market, with high employment levels and an unemployment ra te at historic lows, while consumer inflation returned to around 3% in the second quarter, mainly due to the rise in energy prices. Exports held up well despite the weakening of demand from some geographical regions and the deterioration of the national en ergy balance.

Gefran Group 41 In the first half of 2026, the Group recorded revenue growth compared to the same period of the previous year, driven in particular by the positive performance in the second quarter, despite a negative contribution from foreign currencies.

From a geographical point of view, performance was differentiated: the Italian and Asian markets posted positive growth, while Europe saw contrasting dynamics, with favourable results in France and the United Kingdom and a slowdown in Germany and the Benel ux countries. The Americas, on the other hand, made a weaker contribution.

Overall, the first half of 2026 confirmed moderate growth in both revenues and order intake, driven in particular by the automation components business and the good performance of the Italian and Asian markets. The increase in added value partly absorbed t he increase in operating and personnel costs, maintaining a positive operating margin. Net profit for the half -year also improved slightly compared with the same period in the previous year, also benefiting from more favourable financial management.

In a macroeconomic context still characterised by elements of uncertainty and persistent geopolitical instability factors, the results achieved confirm the solidity of the Group and its ability to continue to be profitable. The implementation of the busine ss development and innovation plan is going ahead, in line with our strategic guidelines, to support progressive and sustainable growth in the medium term.

Based on the performance recorded in the first half of the year and the information currently available, the Group expects moderate revenue growth and positive margins in the coming months, despite an external environment that remains heterogeneous and cha racterised by risks related to the evolution of the geopolitical situation and the volatility of foreign exchange markets.

Own shares

As at 31 December 2025, Gefran S.p.A. held 198,405 shares, equal to 1.38% of the total, with an average book value of 8.6483 Euro per share, and a total value of 1,716 thousand Euro.

During the first six months of 2026, as at the date of this publication, no trading activities took place;

therefore, the situation is unchanged with respect to what is described above.

42 Half-yearly financial report as at 30 June 2026

Gefran Group 43

Report on operations – Disclosure of risks and

uncertainties

44 Half-yearly financial report as at 30 June 2026 In the course of its business, the Gefran Group is exposed to various risk factors, which, should they materialise, may have a significant effect on its economic, financial, operational and reputational situation as well as on the environment and on the he alth and safety of people.

The analysis of risk factors, along with an integrated assessment of their impact and likelihood of occurrence, are the prerequisite for the creation of value in the organisation: the ability to manage risks helps the Company to face its corporate and stra tegic choices with awareness and confidence, as well as helping to prevent negative impacts. Gefran has implemented a structured Enterprise Risk Management (ERM) system integrated into its business processes and organisational structures, connected with ac tions that contribute to the achievement of the Group ’s strategic objectives. The system is based on identifying focus areas and specific figures (Risk Owners & Action Owners), and on providing for the periodic identification, assessment, management and monitoring of the main risk factors. This activity allow s for the identification of situations that might jeopardise the achievement of objectives and for taking the appropriate decisions, aimed at mitigating exposure or the effects of the identified risk.

With the aim of increasing the integration between ERM activities and corporate processes and to ensure their constant alignment with (strategic, managerial and operational) decisions, ensuring long-term sustainability, Gefran has been constantly developin g its ERM model.

In particular, in 2025 the system was strengthened with the integration of Enterprise Risk Management and Double Materiality Assessment processes . This activity was carried out with the aim of enhancing the value of the analyses of Impacts, Risks and Opportunities, and enriching the different processes, favouring a more consistent and cross -cutting approach promoted to value creation over the long term. The integration made it possible to consolidate the relationship between the catalogue of company risks, sustainability targets, the policies adopted for the management of individual topics and materiality assessments. At the same time, all the eleme nts arising from the Double Materiality Assessment were incorporated into the risk model, ensuring a more inclusive and up-to-date representation of the IROs identified and assessed by the organisation, completed by reference topics and ESRS.

To better manage this integration, a tool for the collection and structured consultation of information was also developed, which now supports both the detailed analysis and the aggregated picture of the different risk categories.

Specifically, the model currently in force provides that, for each risk assessed, a connection is identified with further strategic elements, such as:

• the objectives potentially affected, with reference to both the Industrial Plan and the Sustainability Strategic Plan ;

• the topic -related pillars of the Strategic Sustainability Plan ;

• ESG risks ;

• the elements of the Double Materiality Assessment , if connected to the topic in the light of ESG issues and the evolution of sustainability reporting regulations (with reference to the Topical ESRS issued by EFRAG and in force from 1 January 2024);

• policies and actions , including the taking out of insurance policies , aimed at mitigation.

The said process of integration has contributed to improving the circularity of information, enabling the Company to have a more inclusive and coherent risk map, capable of representing more accurately the interconnection between company performance and su stainability.

Based on the model, the monitoring activity envisaged by the process was carried out during the first half of 2026.

Gefran Group 45 Enterprise Risk Management Policy The system is governed by the Enterprise Risk Management Policy (the ERM Policy) approved by the Board of Directors at its meeting on 8 November 2023 and last updated on 4 February 2026.

It defines the governance as well as the steps of the ERM process, providing the guidelines to execute the different steps. More spec ifically, this policy governs:

• the reference principles on which the ERM model is based;

• the roles and responsibilities of the functions and/or individuals involved in the ERM

process;

• the steps involved in the process of identifying, assessing and managing risks;

• the main information flows whose adoption enables adequate dissemination of risk information and informed decision -making.

Risk Governance

The functioning of the ERM system involves the structured participation of specific company roles and departments, as well as the involvement of the main supervisory bodies. In line with the recommendations of the Corporate Governance Code, the governance model governing the roles and responsibilities of the subjects and bodies involved in the process has been defined.

The Board of Directors (BoD) plays a primary role in the direction and oversight of the risk management system and specifically: (i) defines, in line with the organisation ’s strategies, the guidelines for risk management, so that the main risks pertaining to the Group are identified, measured, managed and monitored; (ii) periodically evaluates the adequacy and effectiveness of the risk management system with respect to the a ssumed risk profile and the changes affecting the Group ’s reference context; (iii) delves into the information relating to the risks that emerged during the risk assessment.

The Control and Risks Committee performs consultative, recommendatory and preparatory activities for the Board of Directors and the Chief Executive Office. Specifically: it (i) supports, with an adequate investigative activity, the assessments and decisions of the Board of Directors regarding the risk management system, and periodically reports on its adequacy; (ii) supports the Chief Executive Officer in fulfilling its tasks of design and implementation of the risk system; (iii) examines and discusses the summary document aimed at illus trating the main risks that have emerged to the Board of Directors.

The Chief Executive Officer (CEO) is responsible for establishing and maintaining the internal control and risk management system. Specifically, the Chief Executive Officer: (i) ensures the execution of the guidelines defined by the Board of Directors, promoting the establishment and main tenance of an effective ERM process and constantly verifying its adequacy with respect to the dynamics of operating conditions and the legislative and regulatory landscape; (ii) validates the ERM approach, methodology and related support tools, periodicall y evaluating any development lines; (iii) validates the results of the risk assessment; (iv) monitors, with the support of the Risk Management and Internal Audit Functions, the implementation status and effectiveness of the defined risk response strategies ; (v) periodically reports to the Board of Directors and the Risk Control Committee, with the support of the Risk Management Function, on the results of the risk assessment and, in general, on the evolution of the Group ’s overall risk profile and its consistency with the strategic objectives; (vi) evaluates the possible acceptance of risk.

46 Half-yearly financial report as at 30 June 2026 The Risk Management Function has the roles and responsibilities attributed to the Group ’s Legal and Corporate Affairs Department. Coordinating with the Chief Executive Officer, it is responsible for defining, implementing and maintaining an ERM methodology, promoting a systematic, structured and homogeneous process for identifying, measuring and managing risks. It conducts the risk assessment process, providing methodological support for the identification, analysis and management of risks. In addition, it periodically monitors the progress and effectiveness of the defined risk response strate gies, as well as the evolution of the organisation ’s risk profile.

Management (Risk Owners & Action Owners) has the primary responsibility for the identification, assessment and management of risks that pertain to its function or area of expertise. In addition to the Top Management of the Parent Company Gefran S.p.A., Management includes also the General Manager s of the subsidiaries who, depending on the evolution of the reference context, can be involved in the process. Specifically, each Risk Owner is therefore responsible for: (i) identifying and assessing the risks that may compromise the achievement of the Group ’s objectives, as well as its performance; (ii) proposing appropriate mitigation actions aimed at bringing the main corporate risks back to levels deemed “acceptable ”, also ensuring their implementation and periodic monitoring; (iii) identifying any support teams for the definition and implementation of the mitigation actions necessary to reduce or prevent the negative consequences of risks. Action Owners are instead responsible for ensuring that the mitigation actions proposed to mitigate risks are implemented in line with the defined deadlines.

The Internal Audit Function , within the scope of its assurance responsibilities, is responsible for independently verifying the operation and suitability of the risk management system. Specifically, it has the task of coordinating with the Risk Management Function with regard to the results of the Internal Audit activities carried out by enabling: (i) the monitoring of risks and the related mitigation actions that have emerged in the ERM field, favouring the identification of any deficiencies in the existing risk management system; (i i) the detection of additional unmapped risks in the ERM risk assessment phase and any deficiencies in the existing risk management system.

Enterprise Risk Management Process Stages The process conducted by Gefran involves several stages:

Periodic Risk Assessment It consists of the periodic updating of the Group ’s risk profile, which is achieved by reviewing previously mapped risks and by identifying new risks, through interviews with the Managers of the Parent Company and the main subsidiaries. The process of revising the risk catalogue is based on the results of the previous risk assessment, which are confirmed, modified and/or eliminated in order to provide an updated view of the risk profile. The assessment is repeated periodically (at least once a year) and takes into account the actions taken to mitigate risk s and the evolution of the contingent situation.

This allows the Board of Directors and management to assess knowledgeably those risk scenarios and take additional action to mitigate or manage significant exposures, thus strengthening governance and the Internal Control system.

Following the last risk assessment process carried out, there was a general strengthening of risk management safeguards, together with the identification of new emerging risk areas. This also allowed for the progressive alignment of the risk management mod el with the Plan and the execution of the defined strategy.

Gefran Group 47 The main areas and categories of risk identified include cybersecurity, artificial intelligence and innovation, geopolitical tensions, product sustainability and dependence on key figures, and in particular they concern:

• the adoption of new technologies (e.g., artificial intelligence) and new methods of quick working increase exposure to hacker attacks, an ever -evolving trend that can lead to disruptions in business operations and loss of sensitive data at ever increasing costs, as well as vulnerabilities of products with IT/OT functionalities;

• the importance of continuous investments in product innovation, to ensure alignment with the market ’s best technologies and support the pursuit of sustainability

objectives;

• dependence on key figures represents a potential risk factor in terms of operational continuity and know -how management; the organisation monitors this aspect by assessing the level of concentration of competences within key staff members, and by adopting measures aimed at promoting structured and shared management of company know -how and supporting process efficiency to ensure business continuity;

• the political and economic instability of the Countries in which the Group produces and recent protectionism policies and barriers to entry might damage the competitiveness of the Group ’s products, increasing production costs and adversely affecting the management of global supply chains, as well as creating difficulties in entering or staying on foreign markets.

The analysis showed that some of these areas were already considered within the Gefran risk catalogue; in these cases, the pre -existing risks were updated and integrated as necessary. For one of the new critical areas identified, a specific risk sheet was drawn up, thus ensuring a more complete and targeted coverage with respect to business requirements.

Periodic Risk Monitoring This involves monitoring the progress and implementation of mitigation actions against the most significant risks (so -called Tier 1 or Top Risks) identified during the previous risk assessment, as well as the evolution of risk exposure.

Reporting

During this stage, the results of the risk assessment are formalised and shared with Management and Supervisory bodies.

Assessment methodology and information flows In carrying out the periodic risk assessment, Management is required to use a common methodology, defined to identify and assess specific events in the most homogeneous manner; in particular, the following are assessed:

• probability of a certain event occurring within the time horizon of the Plan, measured on the basis of a scale from “improbable/remote ” risk (1) to “highly probable ” (4);

• impact : depending on the category, an estimate of the economic and financial, HSE, reputational impacts or of the repercussions for operations within the time horizon under consideration, measured on the basis of a scale from “insignificant ” (1) to “critical ” (4);

• level of risk management adequacy or of maturity and efficiency of existing risk management systems and processes, measured on the basis of a scale from “optimal ” (1) to “to be initiated ” (4).

48 Half-yearly financial report as at 30 June 2026 The results of risk exposure measurements are then represented in a 4x4 matrix (known as the Heat Map) which, combining the variables in question, provides an immediate overview of risk events considered particularly significant. The latter are then illust rated and discussed with all bodes of significance for the purposes of the Internal Control and risk management system, including the Board of Directors.

The mapped risks are broken down, depending on seriousness, into three categories (Tier 1, Tier 2 and Tier 3), taking into account both the risk in the abstract (the so -called inherent risk), and the mitigation effects of the internal control system (so -called residual risk). Both types have been evaluated. Comparing the residual risks and inherent risks reveals the safeguards, actions taken and the effectiveness of the internal control system .

The overview of the risks the Group is exposed to allows the Board of Directors and Management to reflect on the Group ’s propensity for risk and identify risk management strategies to be adopted, or assess which risks and priorities are considered to require new mitigation actions, or improvement or optimisation of ongoing ones, or simple monitoring of exposure over time.

To ensure the adequacy of the risk management system and assess its effectiveness, a reporting system is provided also for monitoring the mitigation actions taken by individual functions. Risk reporting and related information provides an authentic view of the strengths and weaknesses of risk management. The disclosure of this information to key Stakeholders also supports decision -making processes and increases transparency on risks that might affect the targets ’ achievement.

Systematic monitoring of the risks identified and assets to manage them according to established metrics enables timely and proactive responses.

Risk Model

The risks mapped are represented in the Risk Model by nature and classified in the different families,

outlined below:

In particular, risks include:

- Country/market risks arising from factors such as macroeconomic environment, changes in the regulatory and/or market environment, changes in economic or political stability in Countries or geographical regions;

- financial risks connected with the availability of funding, credit and liquidity management, and/or volatility of key market variables (e.g. commodity prices, interest rates, exchange rates);

EXTERNAL

STRATEGIC

INTERNAL

ESG

1.Country and

Market

2.Financial

3.Strategy

4.Governance and

Integrity

5.Operations and

Reporting

6.Legal and

Compliance

7.IT

8.Human resources

9.Environmental

10.Social

11.Governance

Gefran Group 49

- strategic risks connected with the company ’s strategic decisions regarding product portfolio, extraordinary operations, innovation, digital transformation, etc. which could influence the Group ’s performance;

- governance and integrity risks connected with Group/Company governance or with professionally incorrect behaviour which does not conform to the Company ’s ethical policy and could expose the Group to possible sanctions, undermining its reputation on

the market;

- operating risks and reporting risks connected with the efficacy/efficiency of company processes, with potential negative consequences for the Company ’s performance and operations, and/or connected with the possibility that planning, reporting and control processes may not be sufficient to assist Management with strategic decision -making and/or monitoring of the business;

- legal and compliance risks pertaining to management of legal and contractual aspects and conformity to national, international and industry laws and regulations applicable to

the Company;

- IT Risks connected with the adequacy of Information Technology systems for supporting the current and/or future requirements of the business, in terms of infrastructure, integrity, security and availability of data, information and information systems;

- human resources risks connected with the attraction, retention, availability, management and development of the resources and skills necessary to conduct business and management of trade union relations;

- ESG -specific risks tied to sustainability issues, divided among Environmental, Social and Governance risks.

Based on the economic and cash flows achieved in the last few years and available funds, and based on the results of ERM activities, there are currently no significant uncertainties that raise significant doubts as to the Company ’s ability to continue to operate as a going concern.

An overview of the main risk factors is provided below, classified according to the risk families described above.

1. Risks associated with countries and markets Risks associated with the general conditions of the economy The most recent projections and estimates on general economic performance and the markets, focused on the regions in which the Group operates, are presented in the Outlook section of this Report on Operations, to which reference is made.

In the context of the scenario described above and the essentially geopolitical uncertainties remaining for the future, it should be noted that the Group does not own strategic assets in the territories currently involved in hostilities and that sales in t hese regions are limited. Although the scenario is changeable, given current considerations, Gefran does not believe that ongoing hostilities will have a significant direct impact on its activities and, consequently, on its ability to generate income in ad dition to what has already been absorbed in the first half of the year.

Risks associated with the market structure and competitive pressure Gefran operates in open and highly competitive markets in terms of product quality, innovation, price competitiveness, product reliability and customer service to machinery manufacturers. In particular, large competitors may benefit from more favourable co st structures, typically as a result of

50 Half-yearly financial report as at 30 June 2026 economies of scale or the cost of factors that they can manage, allowing them to implement aggressive pricing policies.

The Group ’s success derives from its ability to focus on specific industrial sectors, concentrating on the solution of technological problems and the provision of a complete service, in order to provide added value to customers in the market niches in which it excel s.

In order to mitigate the impacts related to the market structure and competitive pressure, Gefran has strengthened its technical -commercial organisation by including specialised figures focused on innovation and emerging technological trends.

Should the Group prove unable to offer innovative products and solutions that can compete with its main competitors (in terms of price, quality, functionality) or should there be delays in the development of such products, sales volumes could decrease, wit h a negative impact on economic and financial results.

Although Gefran believes that it can adapt its cost structure if sales volumes (or prices) decrease, such an adjustment may not be sufficiently broad and timely, with the potential risk of negative effects on the Group ’s economic and financial situation.

Risks associated with changes in the regulatory framework Gefran, as a manufacturer of electronic products used in various application sectors and distributed globally, is subject to several laws and regulations as well as technical standards applying to the target sector or to specific applications (with particu lar reference to certifications).

Changes in regulations or certification standards may require adjustments, including significant costs, or temporarily suspend the marketing of the products concerned, with effects on revenue generation.

In addition, new regulatory provisions applying to the Group or its products, including at the international level, may impose stricter standards or limit the development of specific markets. This may entail costs to adapt production facilities or product characteristics, with possible negative impacts on the Group ’s business, operations and image, as well as on revenue generation.

The introduction of changes to or the tightening of the regulatory framework by national or community government bodies may affect the Group ’s economic results. This includes the introduction of increasingly stringent rules aimed at promoting sustainable business management and greater transparency on environmental impacts.

Operating through production plants in different countries, Gefran is also exposed to risks related to the evolution of occupational safety regulations, although it does not currently identify any areas that are not covered by its practices, operating proc edures and management policies.

Compliance with regulations and monitoring of their evolution are managed by the Corporate functions of the Parent Company Gefran S.p.A. through various active controls and with the local support of external consultants, coordinated by the General Manager of the branch. However, there may be delays in identifying regulatory changes, with negative impacts on the Group ’s operations and reputational value.

Country risk and instability risk A significant portion of the Group ’s production and sales activities is carried out outside the European Union, particularly in Asia, the US, Brazil and Switzerland. The Group is typically exposed to risks relating to the global scale of its operations, including those relating to:

Gefran Group 51

- exposure to local economic and political conditions;

- the implementation of protectionist policies, restricting imports and/or exports;

- operating in multiple tax regimes;

- the introduction of nationalist policies limiting or restricting foreign investment;

- possible disruptions in the supply chain.

Unfavourable political and/or economic developments in the countries in which the Group operates might adversely affect the Group ’s operations, its economic and financial results and future prospects, the extent of which would vary by country. Gefran has located its production lines in different geographical regions in order to effectively serve local markets and, at the same time, h ave alternative production lines, which can be activated to counter any localised instability and ensure operational continuity, albeit with possible delays or limitations.

In the light of political developments linked to the ongoing conflicts, Gefran has formally expressed its desire to terminate business relations with customers residing in Russia and Belarus. Noting that the Group does not possess strategic assets in those regions and that the volume of business affected is modest, this decision has not significantly affected the ability of the Group to generate revenues.

In addition, the conflict in the Middle East is a source of uncertainty that might affect the international economic environment, with possible repercussions on supply chains, energy costs, and market stability, leading to possible overall cost increases. At present, Gefran constantly monitors the situation and remains alert to any developments that might directly or indirectly affect its operations, taking the necessary measures to mitigate emerging risks.

2. Financial Risks Exchange rate risk The Gefran Group, operating globally, is exposed to risks related to exchange rate fluctuations, deriving from the currency dynamics of various countries.

Exposure to exchange rate risk is related to the presence of production activities in certain countries (concentrated in particular in Italy, Switzerland, the United States, China and Brazil), to flows of products transferred between the Group ’s production sites and commercial branches and to distribution activities in geographical regions outside the Eurozone (it should be noted that the Group ’s production areas in the United States, China and its assembly line in Brazil mainly serve the local market, with flows in the same currency).

This organisational structure generates cash flows denominated in currencies other than the euro (mainly US dollars, Chinese renminbi, Brazilian real, Indian rupee, Swiss franc and British pound sterling).

Exchange rate risk arises when future transactions or assets and liabilities already recorded in the statement of financial position are denominated in a currency other than the functional currency of the Company carrying out the operation. To manage excha nge rate risk, the Group uses what is known as Natural Hedging, seeking to level out incoming and outgoing flows in all currencies other than the Euro. In addition, if necessary, the Parent Company assesses the opportunity to engage in hedging operations o n the main currencies, by entering into forward contracts.

52 Half-yearly financial report as at 30 June 2026 Since it prepares its consolidated financial statements in Euro, fluctuations in the exchange rates used to translate the financial statements of subsidiaries, originally denominated in local currency, may affect the Group ’s consolidated results and financial position.

Interest rate risk Changes in interest rates affect the market value of the Group ’s financial assets and liabilities, as well as the net cost of financing recognised in the income statement. The interest rate risk is mainly generated by long -term financial debts and changes in the Euribor (to date, bank loans have been taken out by the Parent Company Gefran S.p.A. and, to a lesser extent, by Italian companies).

These are primarily variable rate loans that expose the Company to a risk associated with interest -

rate volatility (known as the cash flow risk). To limit exposure to this risk, the Parent Company evaluates and signs, where necessary, hedging contracts (so -called derivative contracts), specifically Interest Rate Swaps (IRS), which convert the variable rate to a fixed rate, or Interest Rate Caps (CAP), which set the maximum interest rate, thereby reducing the risk originating from interest -

rate volatility.

Given developments in the international political and monetary scenario, both domestically and internationally, the rise in interest rates represents a risk factor in the coming quarters, although this is limited by hedging contracts in place.

Risks associated with fluctuations in commodity prices Since the Group ’s production mainly involves mechanical, electronic and assembly processes, exposure to energy price fluctuations is limited. The Group is exposed to changes in basic commodity prices (e.g. metals) to a small extent, since such commodities represent a rath er small proportion of the overall product cost.

On the other hand, the Group purchases electronic and electromechanical components for the production of finished products. These materials are exposed to cyclical price variations, even significant ones, that could adversely affect the Group ’s results. During the first half of the year, just like in 2025, both prices and availability were relatively stable; therefore, this phenomenon did not have any significant effects. Thanks to careful and efficient management of the supply chain and logist ic-production processes within the organisation, any further price fluctuations are not expected to have significant impacts.

However, in a business context characterised by geopolitical tensions and/or unforeseeable events, such as rationing of critical raw materials by certain countries or the tightening of protectionist measures, this might lead to delays in the flow of goods, resulting in difficulties in ensuring continuity for customers and/or higher costs.

Risks associated with funding requirements and liquidity risk The Gefran Group ’s financial situation is subject to risks associated with the general performance of the economy and trends in the sectors in which the Group operates.

Gefran ’s capital structure is strong; in particular, own funds total 102.7 million Euro, while liabilities amount to 64.4 million Euro. Operational management in the first half of the year generated positive free cash flow of 0.4 million Euro, after investing a t otal of 8.6 million Euro (of which 8 million Euro in technical investments and 0.6 million Euro in acquisitions of company shares). At 30 June 2026, the net financial position was positive overall and equal to 25.6 million Euro, reflecting a reduction of 7.3 million Euro since the end of the previous year, also as a result of divided distribution in the amount of 6.1 million Euro.

Gefran Group 53 Most existing loan contracts were negotiated at variable rates, based on the Euribor, increased by an average spread of 0.92% over the last half year. The variable rate was turned into a fixed rate through the subscription, during the loan opening period, of Interest Rate Swap (IRS) hedging contracts at an average rate of 2.84% excluding spreads.

No new loans were arranged during 2026. Please refer to Note 17 of the Specific explanatory notes to the condensed half -yearly financial statements for further details on the Group ’s net financial position.

Credit risk

The Group has business relations with a large number of customers. Customer concentration is not high, since no customer accounts for more than 5% of total revenues.

Gefran grants its customers deferred payment conditions, which vary according to the market practices in individual countries. The solvency of all customers is monitored regularly and any risks are periodically covered by appropriate provisions. Despite th ese precautions, under current market conditions, it is possible that some customers may be unable to generate sufficient cash flow or access sufficient sources of funding, resulting in payment delays or failure to honour their obligations.

In accordance w ith IFRS 7.3.6a, all amounts presented in the financial statements represent the maximum exposure to credit risk.

Receivables are adjusted to their estimated realisable value by the allowance for doubtful receivables, which is determined pursuant to IFRS 9 with reference to the expected credit losses on each position. In particular, estimates are based on the best inf ormation available about past events, current economic conditions and forecasts for the future. The Group conducts its analyses using a risk matrix that takes into account geographical region, industry, and individual customer solvency.

Management consider s the forecasts generated to be reasonable and sustainable, despite the current climate of uncertainty.

3. Strategic Risks Risks associated with the implementation of the Group ’s strategy The ability to improve profitability and achieve the expected profit margins also depends on successful strategy implementation. Gefran ’s strategy is based on sustainable growth, which can be achieved through investments and projects for products, applications and geographical and vertical markets that lead to growth in profitability.

Gefran plans to focus its resources on the development of its core industrial business, favouring growth in strategic products and markets that guarantee volumes, and in which the Group has high skills and is a technological and market leader. Gefran conti nues to adapt its organisational structure, processes and its people ’s skills to strengthen its expertise in products, markets and applications.

Its strategy also aims to diversify its reference markets and customers, in order to limit the Group ’s exposure to the performance of a single market or customer.

Any difficulty in adequately increasing its commercial and application know -how relating to new vertical markets may cause a delay in business development, result in the loss of commercial opportunities and negatively affect the Group ’s competitiveness.

54 Half-yearly financial report as at 30 June 2026 Risks connected with delays in product/process innovation Gefran operates in a sector that is strongly influenced by technological innovation. The Group ’s approach to innovation is often customer -driven. This approach, where not balanced by the ability to anticipate and guide market needs, can limit the Group ’s ability to drive innovation.

Inadequate or delayed product/process/model innovation to anticipate and/or influence customers ’ demands might have negative repercussions, causing the Company to miss opportunities and sacrifice market shares, consequently impacting on revenue generation. The impact of this risk would increase should one or more competitors propose business models o r technologies that are more innovative than Gefran ’s.

In order to mitigate such impacts, the Group constantly invests to improve its operating processes, through the introduction of new safeguards, the reorganisation of production flows, digitisation and the strengthening of its organisation with the inclusio n of expert figures focused on innovative technological trends.

Risks linked to dependence on certain unique or critical suppliers The Group purchases components from a large number of suppliers. Electronic components (especially microprocessors, power semiconductors and memory chips) are directly supplied by leading global manufacturers or distributors.

Dependence on given component suppliers or on specific technological platforms might result in delays in production in some particular periods due to lack of supply and/or extra costs due to the need to search for alternative components in the market, spec ifically components. In fact, the electronic components market is marked by the saturation of production capacity, with the consequent need to use the production allocation process to assign the quantities of material available to its customers. Given the cyclical nature of this market, the few world players of active electronic components can suffer, in case of increased market demand.

To address various critical issues, Gefran has implemented a series of operating methods, including:

- the risk assessment of its entire supply chain, with the classification of suppliers by level of criticality, the definition of intervention priorities and the periodic monitoring of the equity -financial solidity of the most relevant suppliers (through a d edicated portal;

- the definition of alternative supply sources and contractual strategies for each source (e.g. multi -year contracts, dedicated warehouses);

- the involvement of the Purchasing function right from the development phase of new

products;

- periodic scouting activities to identify alternative suppliers and technologies, the review of single -source components through the E -Procurement platform and the qualification of alternative suppliers to mitigate the risk of supply discontinuance, reducin g dependence on a single supplier where possible.

Lastly, it is confirmed that the Group does not have direct supply relationships in countries currently involved in the ongoing conflicts. In this regard, Gefran complies with the applicable regulatory requirements and restrictive measures established by t he European Union and recommends that its suppliers comply with the same high standard.

Gefran Group 55 4. Governance and integrity risks Risks arising from ineffective Group coordination The proper implementation of company strategies requires sufficient coordination between the Parent Company and the Group ’s subsidiaries.

To allow meetings to be held between teams from the various Group entities, with the aim of favouring the coordination and pursuit of corporate objectives and/or the implementation of specific projects, the Company promotes the use of hardware and software solutions for organising digital meetings and conferences, to mitigate the risk of slowing down the progress of joint projects. This coordination is mainly ensured thanks to the action of figures responsible for vertical markets and key account management , who pursue shared objectives and promote integration between the various Group entities.

5. Operating risks and reporting risks Risks associated with product development, management and quality The Group ’s value chain covers all activities, including R&D, production, marketing, sales and technical support, all the way down to technical support. Defects or errors in these processes may cause product quality problems that can potentially affect the Group ’s results and financial position.

The quality of the product and of the process underlying its creation is of the utmost importance for Gefran. This is ensured through the activities of the integrated Quality, Safety and Environment function, which has Group -wide responsibilities; over the years, the function has been endowed with new resources and skills to ensure the proper supervision of this fundamental aspect.

In line with the practices of many operators in the sector, Gefran has arranged insurance policies deemed sufficient to protect against product liability risks. Furthermore, a specific product warranty provision is envisaged to cover these risks, in line w ith the volume of business and the historical occurrence of claims.

Nevertheless, should the insurance cover and the risk provision prove inadequate, the Group ’s economic and financial position might be adversely affected. In addition, the Group ’s involvement in disputes concerning product quality and any adverse rulings might expose the Group to reputational damage, which might also indirectly affect its economic and financial position.

Risks associated with operations at industrial facilities Gefran is a manufacturing company, so it is potentially exposed to the risk of production stoppages at one or more of its plants, due, for example, to machinery breakdowns, revocation or disputes regarding permits or licences from public authorities (e.g. following changes in the law), strikes or manpower unavailability, natural disasters, major disruptions to the supply of components or energy, sabotage or attack.

To date, there have been no significant interruptions of activity, except for the limited and temporary suspension of business in connection with the global Covid -19 health emergency; however, new future interruptions cannot be ruled out, and if they occur for lengthy periods, the Group ’s economic and financial position might be adversely affected if the losses exceed the amount currently covered by insurance policies.

56 Half-yearly financial report as at 30 June 2026 Moreover, to mitigate this risk, Gefran has developed plans for investment in plant and machinery, aiming for the digitalisation of processes, the expansion and reorganisation of productive areas and the hiring of new employees. Additionally, the uniformit y of production processes and use of the same bill of materials means, if required by external conditions, that production can be transferred to plants not specified in the standard operating processes. The localisation of production lines and the developm ent of local supply chains are being further strengthened.

In the event of serious emergencies (e.g. fire, earthquake or extreme weather events), Business Continuity Plans have been drawn up to ensure the continuity of production of certain products, and a disaster recovery system has been implemented to restore s ystems, data and infrastructure necessary for business, in order to reduce the impact of possible events.

It should also be noted that an assessment of (physical and transition) climate risks has been carried out, in accordance with ESRS E1 requirements, taking into account various internationally recognised climate scenarios, both with regard to Gefran produc tion sites and the supply chain. The assessment, carried out in the fourth quarter of 2024 and still deemed valid, shows that the Group is not particularly exposed to these risks (a topic discussed in the ESRS E1 Climate Change section of the 2025 Sustainability Report ).

6. Legal and compliance risks Legal risks and product liability In the context of the Group ’s core business, issues may arise linked to product defects and consequent civil liabilities towards customers or third parties. The Group is therefore exposed to the risk of product liability claims, provided for in the different countries in which it ope rates.

In line with the practices of many operators in the sector, Gefran has arranged insurance policies deemed sufficient to protect against product liability risks.

Nevertheless, should the insurance cover and risk provisions prove inadequate, the Group ’s economic and financial position might be adversely affected. In addition, the Group ’s involvement in legal disputes relating to product liability and any adverse rulings might expose Gefran to reputational damage, which might also affect its economic and financial position.

Risks related to the protection of exclusivity and intellectual property rights The Group believes that it has adopted an appropriate system to protect its intellectual property rights, though is exposed to the risk related to higher costs, related to any actions to be taken to defend those rights.

Furthermore, the intellectual property rights of third parties might inhibit or limit the Group ’s capacity to place new products on the market. These events might have an adverse impact on the development of the Group ’s business.

Gefran Group 57 7. IT risks Risks related to data security, IT systems and products with Information Technology/Operational Technology (Cybersecurity) functionalities The digitisation of processes, the adoption of new technologies, including those based on artificial intelligence, and new methods of smart working as well as the development of products incorporating IT/OT functionalities increase exposure to hacker attac ks, which can cause business interruptions and loss of sensitive data with increasing costs. In view of this increasing phenomenon (known as cyber crime) and its constant evolution, the Group is exposed to IT attacks that might compromise corporate data pu blished on the internet, its internal network or other company systems. Also with regard to products with functions that integrate digital functionalities, cyber crime phenomena may expose the Group and its customers to interruption in their operations, and possible damage to their trust relationships, as well as market compet itiveness and regulatory non -compliance, giving rise to higher costs.

The risk is considered partially mitigated as the critical systems adopted by the various Group entities (SAP ERP, email, etc.) are installed and managed directly by the Parent Company from a central location, where a control plan and risk assessment have been defined.

Gefran has placed a strong focus on cybersecurity, adopting procedures and systems to monitor and prevent attacks on the corporate network by hackers, arranging specific insurance cover as well as launching special training and awareness -raising initiative s on IT security issues.

Gefran conducts analyses on product development processes, paying particular attention to identifying possible connections with cybersecurity issues, in order to prevent and mitigate any related risks.

8. Risks associated with human resources Difficulty in attraction and retention of personnel The labour market is characterised by strong competition for skilled individuals, with demand significantly higher than supply. New generations have different expectations and criteria for choosing a company compared to the past.

In this context, the Group is exposed to the risk of attraction and retention if it fails to attract and promptly hire the necessary resources. This may make it unable to strengthen its teams within the required time, may increase the workload of the staff in the organisation and may call for operational reorganisations. These conditions may lead to inefficiencies and additional costs and reduce the company ’s ability to attract and retain talent, especially those with specialist and strategic skills.

Gefran has launched actions to increase its reputational value, engaging in projects aimed at creating a professional organisation to which it is desirable to belong. This goes beyond guaranteeing health and a safe working environment and, more generally, concerns the quality of life inside and outside the company, the training and development of talent, and the promotion of diversity as a value. Gefran ’s partnership with universities has also been strengthened, and attraction channels and processes have been consolidated.

58 Half-yearly financial report as at 30 June 2026 9. ESG Risks Environmental damage risks Although the Group ’s activities do not include the processing or treatment of materials or components to an extent representing a significant risk of pollution or, in any case, of environmental damage, the Group also pays special attention to environmental protection regulat ions.

Gefran has implemented a series of controls and monitoring to identify and prevent risks related to safety and environment, and has prepared and disseminated the “Health, Safety and Environment System ” management policy at every level of the organisation. As a guarantee of the appropriate management methods implemented, the Group ’s main Italian companies obtained ISO 14001:2015 Environmental Management System certification in 2023, which has now been extended to the Group ’s production foreign subsidiaries in China, the United States and Switzerland (third -party audits conducted in December 2025 and January 2026).

If potential liabilities deriving from environmental damage arise, the Group may have recourse on the insurance policies taken out to cover such effects.

Health and safety risks Risk assessment is essential to protect the health and safety of our workers. Gefran is constantly committed to mapping the operating risks that might arise in the various business sectors, so as to define opportunities and take action to minimise these ri sks wherever possible.

Protecting health and safety is essential for Gefran. Confirming the importance of these issues, the organisation has established an integrated “Quality, Safety and Environment ” function that still operates today, drawing on Group -wide expertise. The policy for the “Health, Safety and Environment System ”, which defines guiding principles in these areas, has also been signed and disseminated throughout the Group.

As a guarantee of the appropriate management methods implemented, the Group ’s Italian companies have obtained ISO 45001:2018 Occupational Health and Safety Management System certification, which has now been extended to the Group ’s production foreign subsidiaries in China, the United States and Switzerland (third -party audits conducted in December 2025 and January 2026).

Risk of non -compliance with adequate labour standards in the supply chain Gefran purchases some raw materials and semi -finished products required for its production from suppliers outside the Group. For this reason, it is exposed to the risk that the same standards of compliance with the rights of workers guaranteed by the Group are not guaranteed in the supply chain and this risk is greater in some of the geographical regions in which the Group operates.

This might result in accidents leading to disruption of the supply chain and, therefore, impacts on business continuity, as well as possible impacts on its reputation.

To this end, Gefran has modified the accreditation process for new suppliers, requesting the signing of the Sustainability Pact, a document which requires compliance with certain sustainability principles (guarantee of a healthy and safe working environmen t, respect for human rights in working conditions and discrimination, fight against corruption, etc.). Today the Group is striving to extend its sustainability commitments to an ever larger share of its supply chain.

Gefran Group 59

Ethical risks

The Gefran Group has always been committed to applying and observing rigorous ethical and moral principles when conducting its internal and external activities, in full compliance with the laws in force and market regulations. The adoption of the Code of E thics and Conduct, updated by the Board of Directors at its 10 March 2022 meeting, the related internal compliance procedures put in place and the controls adopted guarantee a healthy, safe and efficient working environment for employees and an approach in tended to ensure complete respect for external Stakeholders. The Group believes that ethics in business management must be pursued alongside financial growth, and the Code is therefore an explicit point of reference for everyone working with the Group.

On 10 March 2022, Gefran approved the “Policy for managing dialogue with shareholders and investors ” (known as Engagement Code), in accordance with the Corporate Governance Code approved by the Italian Corporate Governance Committee. The adoption of this policy, aimed at regulating and promoting dialogue with shareholders and institutional analysts, is c onsistent with one of the principles that has always characterised the Company: encouraging honest dialogue with Stakeholders with a view to creating value in the medium to long term.

Respect for people and appreciation of their skills, protection of diversity and equal opportunities are the ethical principles inspiring the Group ’s HR Policy and expressed in the “People in Gefran ” policy, which applies to the Group as a whole, and the “Sustainability Pact ” required of suppliers.

The Group has also effectively adopted an Organisational, Management and Control Model pursuant to Italian Legislative Decree no. 231/2001 (known as the Organisational Model). The Organisational Model, drawn up on the basis of the Confindustria Guidelines, is periodically updated in line with the evolution of the legislation. At least annually, Gefran carries out the updating of the risk assessment 231 activity, with the aim of evaluating changes in the Company ’s risk profile and of incorporating any organisational changes or the introduction of new “predicate offences ” or changes thereto. This activity is carried out both through interviews with the functions involved and through document analysis.

The Group believes that this is not only a regulatory obligation, but also a source of growth and wealth generation and has therefore fully restructured its activities and internal procedures to prevent the offences set out in this regulation from being co mmitted. The Supervisory Body established by the Board of Directors performs its duties constantly and professionally, guaranteed by the presence of two professionals with excellent knowledge of administrative and process control systems.

It is stipulated that the Group conducts the bulk of its business with private customers, which do not directly or indirectly belong to government organisations or public agencies, and rarely takes part in public tenders or funded projects. This further li mits the risks of reputational or economic damage resulting from unacceptable ethical conduct.

In this context, to ensure that appropriate management methods are implemented, an Integrated Management System has been implemented, certified according to the SA 8000:2014 Social Accountability standard, in the Group ’s Italian companies, and the process will be gradually extended to the Group ’s foreign production subsidiaries. The project to extend the integrated management system is continuing towards the main production branches abroad, based on the model developed on Italian companies.

60 Half-yearly financial report as at 30 June 2026

Gefran Group 61

Condensed half -yearly consolidated financial statements

62 Half-yearly financial report as at 30 June 2026 Consolidated financial statements Statement of profit/(loss) for the period (Euro /000) Progressive Notes 30 June 2026 30 June 2025

Revenues from product sales 21 72,958 71,534 of which related parties: 30 60 -

Other revenues and income 22 857 621 Increases for internal work 12,13 1,310 917

TOTAL REVENUES 75,125 73,072

Change in inventories 16 2,166 180 Costs of raw materials and accessories 23 (23,751) (21,547) of which related parties: 30 (351) (373) Service costs 24 (12,215) (11,560) of which related parties: 30 (163) (160) Miscellaneous management costs - (531) (449) Other operating income - 21 89 Personnel costs 25 (27,546) (25,996) of which related parties: 30 (56) (53) (Impairment)/Reversal of trade and other receivables 16 (87) (25) Amortisation and impairment of intangible assets 26 (1,007) (869) Depreciation and impairment of tangible assets 26 (2,480) (2,437) Depreciation rights of use 26 (702) (678)

EBIT 8,993 9,780

Gains from financial assets 27 717 686 Losses from financial liabilities 27 (543) (1,439) (Losses)/Gains from shareholdings valued at equity 15 15 (5)

PROFIT (LOSS) BEFORE TAX 9,182 9,022

Current taxes 28 (2,570) (2,453) Deferred tax assets and liabilities 28 132 63

TOTAL TAXES (2,438) (2,390)

NET PROFIT (LOSS) FOR THE PERIOD 6,744 6,632

Attributable to:

Group - 6,744 6,618 Third parties - - 14

Earnings per share Progressive (Euro) Notes 30 June 2026 30 June 2025 Basic earnings per ordinary share 19 0.47 0.47 Diluted earnings per ordinary share 19 0.47 0.47

Gefran Group 63 Statement of profit/(loss) and other items of comprehensive income

(Euro /000) Progressive Notes 30 June 2026 30 June 2025

NET PROFIT (LOSS) FOR THE PERIOD 6,744 6,632

Items that will not subsequently be reclassified in the statement of profit/(loss) for the period

- equity investments in other companies 15 (15) (14)

Items that will or could subsequently be reclassified in the statement of profit/(loss) for the period

- conversion of foreign companies ’ financial statements 18 1,127 (2,418)

- fair value of cash flow hedging derivatives 18 82 (13)

Total changes, net of tax effect 1,194 (2,445)

Comprehensive result for the period 7,938 4,187

Attributable to:

Group - 7,938 4,173 Third parties - - 14

64 Half-yearly financial report as at 30 June 2026 Statement of financial position (Euro /000) Notes 30 June 2026 31 December 2025

NON -CURRENT ASSETS

Goodwill 11 5,996 5,918 Intangible assets 12 8,690 8,142 Property, plant, machinery and tools 13 42,865 38,466 of which related parties: 30 983 345 Usage rights 14 3,542 3,495 Shareholdings valued at equity 15 4,791 4,776 Equity investments in other companies - 1,770 1,785 Receivables and other non -current assets - 134 88 Deferred tax assets 28 2,308 2,202 Non-current financial assets for derivatives 17 - 5 Other non -current financial investments 17 100 102

TOTAL NON -CURRENT ASSETS 70,196 64,979

CURRENT ASSETS

Inventories 16 17,656 15,182 Trade receivables 16 31,135 26,016 of which related parties: 30 3 135 Other receivables and assets - 4,087 3,526 Current tax receivables - 706 697 Cash and cash equivalents 17 43,316 53,140

TOTAL CURRENT ASSETS 96,900 98,561

TOTAL ASSETS 167,096 163,540

SHAREHOLDERS ’ EQUITY

Share capital 18 14,400 14,400 Reserves 18 81,517 76,560 Profit / (Loss) for the year 18 6,744 9,869 Group Shareholders ’ equity 18 102,661 100,829 Shareholders ’ equity of minority interests 18 - -

TOTAL SHAREHOLDERS ’ EQUITY 102,661 100,829

NON -CURRENT LIABILITIES

Non-current financial payables 17 9,640 11,697 Non-current financial payables for IFRS 16 leases 17 2,373 2,379 Non-current financial liabilities for derivatives 17 66 178 Employee benefits - 2,283 2,208 Non-current provisions 20 413 463 Deferred tax provisions 28 1,011 985

TOTAL NON -CURRENT LIABILITIES 15,786 17,910

CURRENT LIABILITIES

Current financial payables 17 4,558 4,921 Current financial payables for IFRS 16 leases 17 1,229 1,230 Trade payables 16 25,590 21,571 of which related parties: 30 865 558 Current provisions 20 753 693 Current tax payables - 2,090 1,025 Other payables and liabilities 28 14,429 15,361

TOTAL CURRENT LIABILITIES 48,649 44,801

TOTAL LIABILITIES 64,435 62,711

TOTAL SHAREHOLDERS ’ EQUITY AND LIABILITIES 167,096 163,540

Gefran Group 65 Consolidated cash flow statement (Euro /000) Notes 30 June 2026 30 June

2025

(A) CASH AND CASH EQUIVALENTS AT THE START OF THE PERIOD 53,140 59,629

B) CASH FLOW GENERATED BY (USED IN) OPERATIONS IN THE PERIOD

Net profit (loss) for the period 6,744 6,632 Depreciation, amortisation and impairment 26 4,189 3,984 Provisions (Releases) 16,20 1,316 985 Capital (Gains)/Losses on the sale of non -current assets 12,13 12 -

Net result from financial operations 27 (189) 758 Taxes 28 2,438 2,390 Change in provisions for risks and future liabilities 20 (269) (320) Change in other assets and liabilities - (1,209) (1,078) Change in deferred taxes 28 1 (3) Change in trade receivables 16 (4,876) (3,422) of which related parties: 30 132 -

Change in inventories 16 (3,041) (874) Change in trade payables 16 3,955 1,283 of which related parties: 30 307 67

TOTAL 9,071 10,335

C) CASH FLOW GENERATED BY (USED IN) INVESTMENT ACTIVITIES

Investments in:

- Property, plant & equipment and intangible assets 12,13 (8,058) (3,088) of which related parties: 30 (983) (98)

- Equity investments and securities 15 - (4,000)

- Acquisitions net of acquired cash - (580) (739)

- Financial receivables - (46) (15) Disposal of non -current assets 12,13 2 22

TOTAL (8,682) (7,820)

D) FREE CASH FLOW (B+C) 389 2,515

E) CASH FLOW GENERATED BY (USED IN) FINANCING ACTIVITIES

Repayment of financial payables 17 (2,562) (2,557) Increase (decrease) in current financial payables 17 (3) 1 Outgoing cash flow due to IFRS 16 17 (752) (605) Taxes paid 28 (1,006) (1,442) Interest paid 27 (287) (380) Interest received 27 36 327 Dividends paid 18 (6,107) (6,107)

TOTAL (10,681) (10,763)

F) CASH FLOW FROM CONTINUING OPERATIONS (D+E) (10,292) (8,248)

G) Exchange rate translation differences on cash at hand 17 468 (1,148)

H) NET CHANGE IN CASH AT HAND (F+G) (9,824) (9,396)

I) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (A+H) 43,316 50,233

66 Half-yearly financial report as at 30 June 2026 Statement of changes in shareholders ’ equity Overall EC reserves (Euro /000) Notes

Share capital

Capital reserves

Consolidation reserve

Other reserves

Retained profit /(loss) Fair value measurement

reserve

Currency translation reserve

Other reserves

Profit/(loss) for the year Group Total shareholders ’

equity

Shareholders ’ equity of

minority interests

Total shareholders ’ equity

Balance at

1 January

2025 14,400 21,926 10,106 8,501 29,556 (168) 4,257 (382) 11,142 99,338 - 99,338

Destination

of profit 2024

- Other

reserves and

provisions 18 - - 920 8,178 2,044 - - - (11,142) - - -

- Dividends 18 - - - - (6,107) - - - - (6,107) - (6,107)

Income/

(Expenses)

recognised

at equity 18 - - - - - (27) - - - (27) - (27)

Change in

translation

reserve 18 - - - - - - (2,418) - - (2,418) - (2,418)

Other

changes 18 - - 1 - - - - - - 1 477 478

Profit 30

June 2025 18 - - - - - - - - 6,618 6,618 14 6,632

Balance at

30 June

2025 14,400 21,926 11,027 16,679 25,493 (195) 1,839 (382) 6,618 97,405 491 97,896

Balance at

1 January

2026 14,400 21,926 11,026 16,605 25,493 (121) 1,939 (308) 9,869 100,829 - 100,829

Destination

of profit 2025

- Other

reserves and

provisions 18 - - (238) - 10,107 - - - (9,869) - - -

- Dividends 18 - - - - (6,107) - - - - (6,107) - (6,107)

Income/

(Expenses)

recognised

at equity 18 - - - - - 67 - - - 67 - 67

Change in

translation

reserve 18 - - - - - - 1,127 - - 1,127 - 1,127

Other

changes 18 - - 1 - - - - - - 1 - 1

Profit 30

giugno 2026 18 - - - - - - - - 6,744 6,744 - 6,744

Balance at

30 June

2026 14,400 21,926 10,789 16,605 29,493 (54) 3,066 (308) 6,744 102,661 - 102,661

Gefran Group 67 Specific explanatory notes to the accounts 1. General information, form and content Gefran S.p.A. is incorporated and located at Via Sebina 74, Provaglio d ’Iseo (BS).

The Group ’s main activities are described in the Report on Operations, in the Gefran Group Activities section.

This half -yearly financial report of the Gefran Group for the period ended 30 June 2026 was approved, and its publication was authorised, by the Board of Directors, on 6 August 2026.

2. Form and content The condensed half -yearly consolidated financial statements of the Gefran Group have been prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the European Union and, in particular, according to IAS 34.

They comprise the financial statements of Gefran S.p.A., its subsidiaries and its direct and indirect affiliates, approved by their respective Boards of Directors. The consolidated companies have adopted international accounting standards, with the excepti on of a number of companies whose financial statements have been restated in accordance with IAS/IFRS for the purposes of the Group ’s condensed half -yearly consolidated financial statements.

The limited legal audit of the condensed half -yearly consolidated financial statements was carried out by Deloitte & Touche S.p.A.

These condensed half -yearly consolidated financial statements are presented in Euro (EUR), the functional currency of most Group companies. Unless otherwise stated, all amounts are expressed in thousands of Euro.

For details on the seasonal nature of the Group ’s operations, please refer to the attached Consolidated income statement by quarter .

3. Accounting schedules The Gefran Group has adopted:

- a statement of financial position, according to which assets and liabilities are separated into current and non -current categories;

- a statement of profit/(loss) for the year, in which costs are categorised by nature;

- a statement of profit/(loss) for the year and other items of comprehensive income, which shows income and charges posted directly to shareholders ’ equity, net of tax effects;

- the cash flow statement prepared using the indirect method, which adjusts the pre -tax profit for the period to eliminate the effects of non -monetary transactions, any deferral or allocation from previous or future operating collections or payments, and rev enues or costs associated with the cash flows deriving from investment or financing activities; with a view to greater transparency, the Company has chosen to present the cash flow statement in a format that better represents its own dynamics, starting wit h net profit for the period and then eliminating the taxes charged to the income statement, rather than starting with the pre -tax profit.

68 Half-yearly financial report as at 30 June 2026 With reference to Consob resolution 15519 of 27 July 2006, amounts referring to transactions with related parties and non -recurring items, if any, are classified separately from the relevant items in the statement of financial position and income statement .

4. Consolidation principles and measurement criteria The consolidation principles and measurement criteria adopted for the preparation of this half -yearly financial report at 30 June 2026 are consistent with those adopted to prepare the annual financial report at 31 December 2025.

With reference to Consob communication no. DEM/11070007 of 5 August 2011, it is also recalled that the Group ’s portfolio does not contain any bonds issued by central or local governments or government agencies and is therefore not exposed to risks generated by market fluctuations. The consolidated half -yearly financial report was prepared using the general histor ical cost criterion, adjusted as required for the valuation of certain financial instruments.

With reference to Consob Communication 0003907 of 19 January 2015, note “Goodwill ” includes the required information and, specifically, the references to external information and the sensitivity analysis needed to measure certain financial instruments.

With reference to Consob Communication 0092543 dated 3 December 2015, it is noted that the Report on operations follows the ESMA guidelines (ESMA/2015/1415) for the disclosures needed to ensure the comparability, reliability and understandability of the Al ternative Performance Indicators.

With reference to Consob communication no. 0007780 of 28 January 2016, it is noted that the impact of market conditions on the information disclosed in the financial statements was considered in the Directors ’ Report on Operations. We also note that the application of IFRS 13 “Fair Value Measurement ” by Gefran did not involve significant changes to the financial statements.

It should also be noted that the Company has applied the amendment “Deferred Tax related to Assets and Liabilities arising from a Single Transaction ” issued by the IASB on 7 May 2021 and referring to IAS 12 “Income Taxes ”. The application is effective from 1 January 2023 and the effects have been detected from the first comparative year presented (modified retrospective basis).

Finally, with reference to the amendment called “International Tax Reform -Pillar Two Model Rules -

Amendments to IAS 12 (the Amendments) ” published by the IASB on 23 May 2023, it should be noted that the rules of the Pillar Two Model Rules apply to multinational groups with revenues in their Consolidated Financial Statements exceeding 750 million Euro, in at least two of the four previous financial years. For this reason as well, all the amendments related to the so -called “Global Antibase Erosion Model Rules ”, including the one published by the IASB on 23 May 2023 and aimed at simplifying deferred tax accounting, are not applicable to the Gefran Group.

Gefran Group 69 5. Change in consolidation scope The scope of consolidation as at 30 June 2026 is un changed from both that of 30 June 2025 and of 31 December 2025 .

6. Accounting standards, amendments and interpretations applied since 1 January 2026 The new IFRS standards, amendments and interpretations that came into effect on 1 January 2026 are as follows:

- Amendment to the “Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 ”, published on 30 May 2024, which introduced clarifications on the classification and measurement of financial assets, including some cases relating to financial instruments with characteristics linked to the achievement of ESG objectives. The application of this amendment did not have a significant impact on the Group ’s consolidated financial statements, as the cases covered thereby are absent or not relevant.

- Amendment entitled “Contracts Referencing Nature -dependent Electricity – Amendments to IFRS 9 and IFRS 7 ”, published on 18 December 2024, aimed at improving the accounting and reporting of certain types of contracts for the purchase of electricity from renewable sources. The application of the amendment did not have a significant effect on the Group ’s consolidated financial statements.

- Package of amendments described in the document “Annual Improvements Volume 11 ” published on 18 July 2024, containing amendments of limited scope to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 aimed at clarifying certain application aspects and improving consistency between international accounting standards. The adoption of these chan ges did not have a significant impact on the Group ’s consolidated financial statements.

7. Accounting standards, amendments and interpretations not yet applicable or not applied in advance The following are new IFRS standards, amendments and interpretations approved by the IASB and endorsed by the European Union, but not yet mandatorily applicable, for which the Gefran Group has not opted for early adoption:

- New IFRS 18 “Presentation and Disclosure in Financial Statements ”, published on 9 April 2024, replacing IAS 1 “Presentation of Financial Statements ” with the aim of improving the presentation of financial statements. The new standard introduced significant changes to the presentation of the income statement, new disclosure requirements relating to management -

defined performance measures and further gu idance on the aggregation and disaggregation of financial information. The Group has analysed the main impacts arising from the introduction of the new standard, with particular reference to the structure of its consolidated income statement and the identi fication of any performance indicators relevant for reporting purposes, and has launched a project to adapt its financial reporting processes to the new requirements. The application of IFRS 18 is expected to have mainly presentation and disclosure effects , with no impact on consolidated economic, equity and financial results. The principle will be applicable from the financial years starting on or after 1 January 2027 and Gefran has decided not to take advantage of the early application option.

70 Half-yearly financial report as at 30 June 2026 In addition, the following standards have been approved by the IASB, but have not yet been endorsed by the European Union and will thus become effective in the future:

- New IFRS 19 “Subsidiaries without Public Accountability: Disclosures ”, which introduced a simplified disclosure regime for the individual financial statements of subsidiaries meeting specific requirements and preparing their financial statements in accordance with IFRS Accounting Standards. The principle will be applicable from the financial years starting on or after 1 January 2027, with the possibility of early adoption. The standard will not have any effect on the Group ’s consolidated financial statements; however, assessments are currently underway regarding its possible application to the financial statements of the subsidiaries of Gefran S.p.A. that meet the characteristics described in the standard.

- Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency ”, published on 13 November 2025, which provided clarification on the translation of financial statements when the presentation currency belongs to a hyperinflationary economy and the functional currency does not belong to that economy. The standard is expe cted to come into force for the financial years beginning on or after 1 January 2027, with the possibility of early adoption.

Based on the preliminary analyses carried out, no significant impacts are expected on the Group ’s consolidated financial statements.

- The new IFRS 20 “Regulatory Assets and Regulatory Liabilities ”, published on 27 May 2026, is applicable to entities operating in sectors subject to specific regulatory pricing mechanisms.

Based on the preliminary analyses carried out, the Group does not believe that the standard can have a significant effect on its c onsolidated financial statements, given the nature of the activities carried out.

- Amendments to IAS 28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures ”, published by EFRAG on 27 June 2026. The amendments clarified the scope of the fair value option for investments in associates and joint ventures. The Group is assessing the effects of the new amendment, which are not expected to be significant at this ti me.

8. Main decisions in the application of accounting standards and uncertainties when

making estimates

The Group makes estimates and assumptions to measure certain items when preparing the condensed half -yearly financial statements and related explanatory notes in accordance with IAS/IFRS. These are based on historical experience and uncertain but realistic assumptions that are assessed regularly and, if necessary, updated, with effect on the income statement for the period and prospectively. The uncertainty inherent in these assessments may lead to misalignment between the estimates made and recognition in the financial statements of the actual effects of the forecasted events.

The following processes require management to make accounting estimates, and for which a change in the underlying conditions could have a significant impact on the consolidated financial data:

Inventory allowance

Inventories are stated at their purchase cost (measured using the weighted average cost method) or, if lower, their net realisable value. The inventory allowance is needed to align the value of inventories with their estimated realisable value: inventories are analysed to identify slow -moving items, so as to recognise a provision that reflects their potential obsolescence.

Gefran Group 71 Provision for doubtful receivables The provision for doubtful receivables reflects Management ’s estimates regarding the recoverability of receivables from customers. This assessment is based on past experience and an analysis of situations faced with known or probable collection risks.

Regarding the introduction of IFRS 9, and particularly the method for impairment of financial investments, the Group adopts the method for determination of the reserve to be used for coverage of losses on receivables, taking into account the losses expecte d throughout the life of the receivable, as required by the standard.

Goodwill and intangible assets with an indefinite life These are measured periodically using impairment tests, with the aim of determining their present value and recognising any differences with respect to their carrying amounts; for details, see the Specific explanatory notes to the accounts .

Employee benefits and no -competition agreements The provisions for post -employment benefits and no -competition agreements are recorded in the financial statements and remeasured annually by external actuaries who inter alia make assumptions about the discount rate, inflation and demographic assumptions; for details, see the Specific explanatory notes to the accounts .

Deferred tax assets The recoverability of deferred tax assets is periodically evaluated, based on the results achieved and on the industrial plans prepared by Management.

Current and non -current provisions Provisions are made for risks that will probably have an adverse outcome. The provisions recorded in the financial statements reflect management ’s best estimate of the risk at that time. This estimate entails the adoption of assumptions that depend on factors that may change over time and that could, therefore, have a significant effect on the current estimates made by Management in preparing the Group’s consolidated financial statements.

With regard to the assessment of the risks associated with the Group ’s activities, Gefran assesses the effects of ongoing climate change, reporting the results of these assessments under Main risks and uncertainties to which the Gefran Group is exposed , as well as in the ESRS E1 Climate change section of the Sustainability Report included in the Report on Operations as at 31 December 2025. In particular, the assessments carried out on physical and transition climate risks, based on several scenarios, ensure the reasonable resilience of assets and the sustainability of the Group ’s activities in the short, medium and long term. Changes in scenarios may of course have different effects, but they are currently considered not likely. The assessment considered the Group ’s production sites, sales offices and main suppliers, and did not reveal any significant financial effects.

At present, no factors related to climate change that might affect the recoverability of goodwill, and no impairment indicators that may affect the recoverability of non -current assets with a finite useful life, have been identified. The assessments made to date on potential legislative or regulatory changes relating to climate change do not establish the need to allocate funds for any liabilities lin ked to environmental risks.

72 Half-yearly financial report as at 30 June 2026 9. Financial instruments: supplementary disclosure pursuant to IFRS 7 The Group ’s activities are exposed to different types of risk: market risk (including exchange -rate risks, interest -rate risks and price risks), credit risk and liquidity risk. The Group ’s risk management strategy focuses on the unpredictability of markets and is intended to minimise the potential adverse impact on the Group ’s results. Certain types of risk are mitigated through the use of derivatives.

Coordination and monitoring of the main financial risks are centralised in the Group ’s Finance and Administration Department, as well as in the Purchasing function as regards price risk, in close collaboration with the Group ’s operating units. Risk management policies are approved by the Group ’s Administration, Finance and Control Department, which provides written guidelines for managing the risks listed above and using financial derivatives and other financial instruments. In the context of the sensitivity analyses described below, the effect on net profit and shareholders ’ equity is determined gross of the tax effect.

Exchange rate risks The Group is exposed to the exchange rate risk in relation to commercial transactions and cash on hand held in currencies other than the Euro, which is the Group ’s functional currency. Around 37% of sales are denominated in a different currency. Specifically, the Group is most exposed to the following exchange rates:

- Euro/RMB, about 18%, in relation to Gefran Automation Technology (operating in China);

- Euro/USD, about 9%, primarily in relation to the commercial relations of Gefran Automation Technology and Gefran Inc (operating in the United Stated), which are both foreign

subsidiaries;

- the remainder is divided between Euro/BRL, Euro/GBP, Euro/CHF, and Euro/INR.

With reference to the two main currencies, at 30 June 2026 trade receivables included 3,333 thousand US dollars and trade payables included 2,397 thousand US dollars (at 30 June 2025 , receivables included 1,194 thousand US dollars and payables included 557 US dollars); trade receivables also included 23,744 thousand Renminbi and trade payables also included 3,063 thousand Renminbi (at 30 June 2025, receivables included 21,195 thousand Renminbi and payables included 2,861 thousand Renminbi).

The sensitivity of the fair value of reported assets and liabilities to hypothetical and unexpected 5% and 10% exchange rate fluctuations is shown below:

30 June 2026 30 June 2025 (Euro /000) -5% +5% -5% +5% Chinese Renminbi 140 (127) 115 (104) U.S. Dollar 45 (41) 43 (39) Total 185 (168) 158 (143)

30 June 2026 30 June 2025 (Euro /000) -10% +10% -10% +10% Chinese Renminbi 297 (243) 242 (198) U.S. Dollar 95 (78) 91 (74) Total 392 (321) 333 (272) The sensitivity of the fair value of the net profit for the period to hypothetical and unexpected 5% and 10% shifts in the most significant exchange rates is shown below:

Gefran Group 73 30 June 2026 30 June 2025 (Euro /000) -5% +5% -5% +5% Chinese Renminbi 50 (46) 22 (20) U.S. Dollar 24 (22) 28 (25) Total 74 (68) 50 (45)

30 June 2026 30 June 2025 (Euro /000) -10% +10% -10% +10% Chinese Renminbi 106 (87) 46 (38) U.S. Dollar 51 (42) 58 (48) Total 157 (129) 104 (86)

The sensitivity of the fair value of shareholders ’ equity to hypothetical and unexpected 5% and 10% shifts in the most significant exchange rates is shown below:

30 June 2026 30 June 2025 (Euro /000) -5% +5% -5% +5% Chinese Renminbi 561 (508) 509 (461) U.S. Dollar 504 (456) 462 (418) Total 1,065 (964) 971 (879)

30 June 2026 30 June 2025 (Euro /000) -10% +10% -10% +10% Chinese Renminbi 1,185 (970) 1,075 (880) U.S. Dollar 1,064 (870) 975 (798) Total 2,249 (1,840) 2,050 (1,678)

Interest rate risk The interest rate risk to which the Group is exposed mainly originates from variable rate financial payables (totalling 13,162 thousand Euro at 30 June 2026), which expose the Group to a risk arising from interest rate volatility (cash flow risk). The Grou p’s Administration and Finance Department monitors the exposure to interest rate risk and proposes appropriate hedging strategies to contain the exposure within the limits defined and agreed in the Group ’s policies, using derivatives, Interest Rate Swaps (IRS) and Interest Rate Caps (CAP) when necessary.

The following sensitivity analysis shows the impact on consolidated net profit/(loss) of an interest rate increase/decrease of 100 basis points with respect to the spot interest rates at 30 June 2026 and 30 June 2025, while keeping other variables unchange d.

30 June 2026 30 June 2025 (Euro /000) (100) 100 (100) 100 Euribor 432 (432) 502 (502) Total 432 (432) 502 (502) The potential impacts reported above have been calculated on the basis of the net liabilities representing the most significant part of the Group ’s payables as of the date of this Annual financial report and calculating the effect of net financial charges on this amount resulting from changes in annual interest rates.

74 Half-yearly financial report as at 30 June 2026 The net liabilities considered in this analysis include variable -rate financial receivables and payables, cash on hand, and financial derivatives, the value of which is affected by interest rate fluctuations.

The table below analyses by maturity the carrying value at 30 June 2026 of the Group ’s financial instruments exposed to interest rate risk:

(Euro /000) <1 year 1 - 5 years >5 years old Total

Loans 4,367 9,603 37 14,007 Financial payables due to leasing under IFRS 16 1,229 1,926 447 3,602 Other accounts payable 41 - - 41 Account overdrafts 150 - - 150 Total liabilities 5,787 11,529 484 17,800 Cash in current accounts 43,301 - - 43,301 Total assets 43,301 - - 43,301 Total variable rate 37,514 (11,529) (484) 25,501 Unlike Net Financial Position figures, the amounts shown in the table above do not include the fair value of derivatives (negative at 66 thousand Euro), cash on hand (positive at 15 thousand Euro) and financial pre -paid expenses (positive at 100 thousand E uro).

The table below analyses by maturity the carrying value at 30 June 2025 of the Group ’s financial instruments exposed to the interest rate risk:

(Euro /000) <1 year 1 - 5 years >5 years old Total

Loans 5,123 13,710 - 18,833 Financial payables due to leasing under IFRS 16 1,230 2,287 296 3,813 Other accounts payable 92 - - 92 Total liabilities 6,447 15,997 296 22,740 Cash in current accounts 50,218 - - 50,218 Total assets 50,218 - - 50,218 Total variable rate 43,771 (15,997) (296) 27,478

Liquidity risk

Prudent management of liquidity risk arising from the Group ’s normal operations means that an appropriate level of cash on hand and short -term securities must be maintained, together with the possibility to draw funds from an appropriate amount of committed credit lines.

The Group ’s Administration and Finance Department monitors forecasts on the uses of the Group ’s liquidity reserves based on expected cash flows. The following table analyses the liquidity reserves available on the specified reporting dates.

Gefran Group 75 (Euro /000) 30 June 2026 31 December 2025 Change

Cash and cash equivalents 15 15 -

Cash in bank deposits 43,301 53,125 (9,824) Total liquidity 43,316 53,140 (9,824)

Multiple mixed credit lines 20,500 20,500 -

Cash flexibility credit lines 3,150 3,150 -

Credit lines on invoice 2,000 2,000 -

Total credit lines available 25,650 25,650 -

Total liquidity available 68,966 78,790 (9,824)

To complete the disclosure about financial risks, the following table reconciles the financial assets and liabilities reported in the Group ’s statement of financial position with those identified pursuant to IFRS 7 requirements.

(Euro /000) Level 1 Level 2 Level 3 Total

Available -for-sale assets and discontinued operations valued at fair value:

Shareholdings valued at fair value with a balancing item in other overall profit/(loss) 154 - 1,616 1,770 Hedging transactions - - - -

Total assets 154 - 1,616 1,770

Hedging transactions - (66) - (66) Total liabilities - (66) - (66) The following table reconciles the financial assets and liabilities reported in the Group ’s statement of financial position at 30 June 2025 with those identified pursuant to IFRS 7:

(Euro /000) Level 1 Level 2 Level 3 Total

Available -for-sale assets and discontinued operations valued at fair value:

Shareholdings valued at fair value with a balancing item in other overall profit/(loss) 187 - 1,609 1,796 Hedging transactions - 15 - 15 Total assets 187 15 1,609 1,811

Hedging transactions - (308) - (308) Total liabilities - (308) - (308) Level 1 : Fair values represented by the prices - listed in active markets (unadjusted) - of financial instruments identical to those being valued that may be accessed at the measurement date. These prices are defined as mark -to-market inputs as they provide a fai r value measurement based directly on official market prices, therefore without the need for any modification or adjustment. The change since 30 June 2025 reflects the decrease in the value of the shareholding in Woojin Plaimm Co Ltd.

by 33 thousand Euro.

76 Half-yearly financial report as at 30 June 2026 Level 2 : Fair values determined using measurement techniques based on variables that may be observed in active markets, which in this case include the measurement of interest rate and exchange rate hedges. As with the Level 1 inputs, the reference value is mark -to-market, i.e. the evaluation method whereby the value of a financial instrument or contract is systematically adjusted according to the current market prices.

Level 3 : Fair values determined using measurement techniques based on market variables that may not be observable, which in particular refer to equity investments in other companies not listed on international markets. This item mainly relates to the shareholding in Colombera S.p.A. (1,582 thousand Euro).

Credit risk

The Group grants its customers deferred payment conditions, which vary according to the market practices in individual countries. The solvency of all customers is monitored regularly and any risks are periodically covered by appropriate provisions. Despite these precautions, under current market conditions, it is possible that some customers may be unable to generate sufficient cash flow or access sufficient sources of funding, resulting in payment delays or failure to honour their obligations.

Receivables are adjusted to their estimated realisable value by the allowance for doubtful receivables, which is determined pursuant to IFRS 9 with reference to the expected credit losses on each position, taking account of past experience in each business area and geographical region.

The Group has developed estimates based on the best information available about past events, current economic conditions and forecasts for the future. The analyses conducted to determine the existence of this risk are based primarily on a few factors:

- the potential effects of extraordinary events (e.g. ongoing conflicts) on the economic system;

- the support measures implemented by governments;

- the recoverability of receivables following changes in the probability of default by customers.

With reference to this last point, the Group has performed analyses using a risk matrix that takes geographical region, business area and individual customer solvency into account.

Management considers the forecasts thus generated to be reasonable and sustainable despite the current climate of uncertainty.

Gefran Group 77 Gross trade receivables are analysed below at 30 June 2026 and 31 December 2025:

(Euro /000) Total

value Not

overdue Overdue

by up to 2

months Overdue

by 2 to 6

months Overdue

by 6 to 12

months Overdue

by more

than 12

months Receivables

individually

written

down

Gross trade receivables at 30 June 2026 32,268 27,744 2,327 957 41 186 1,013 Gross trade receivables at 31 December 2025 27,051 23,509 1,875 466 73 333 795 The Gefran Group has established formal procedures for granting credit limits and for credit collection by the credit function, in partnership with leading external law firms. All the procedures put in place are intended to reduce credit risk. The exposure to other forms of credit, such as financial receivables, is monitored constantly and reviewed monthly, or at least quarterly, in order to identify any losses or collection risks.

Risk of change in raw material prices Since the Group ’s production mainly involves mechanical, electronic and assembly processes, exposure to energy price fluctuations is limited. The Group is exposed to changes in basic commodity prices (e.g. metals) to a small extent, given that the product cost component r elated to these materials is very limited.

The purchase prices of key components are usually agreed with counterparties for the full year and reflected in the budget. The structured and formalised governance systems adopted by the Group mean that the margins earned can be analysed periodically.

As regards the recent rise in prices, also related to developments in the geopolitical situation, key factors were in -depth knowledge of the product and the synergy between the various company areas, which made it possible to promptly navigate new technolo gical roads, broaden the spectrum of choices and introduce new supply opportunities, in order to mitigate the effect of rising prices.

Fair value of financial instruments All financial instruments are recorded in the Group ’s financial statements at fair value. The carrying value of the financial liabilities measured at amortised cost is deemed to approximate their fair value at the reporting date.

The following table summarises the Group ’s net financial position, comparing fair value and carrying

value:

78 Half-yearly financial report as at 30 June 2026 carrying value fair value (Euro /000) 30 June 2026 31 December 2025 30 June 2026 31 December

2025

Financial assets

Cash and cash equivalents 15 15 15 15 Cash in bank deposits 43,301 53,125 43,301 53,125 Financial assets for derivatives - 5 - 5 Non-current financial investments 100 102 100 102 Total financial assets 43,416 53,247 43,416 53,247

Financial liabilities

Current portion of long -term debt (4,367) (4,872) (4,367) (4,872) Short -term bank debt (150) (4) (150) (4) Financial liabilities for derivatives (66) (178) (66) (178) Payables due to leasing contracts under IFRS 16 (3,602) (3,609) (3,602) (3,609) Other financial payables (41) (45) (41) (45) Non-current financial debt (9,640) (11,697) (9,640) (11,697) Total financial liabilities (17,866) (20,405) (17,866) (20,405) Total net financial position 25,550 32,842 25,550 32,842

10. Information by segment Primary segment – sector of activity The Gefran Group ’s organisational structure is divided into two sectors of activity: sensors and automation components. The economic trends and principal investments are discussed in the Report on Operations.

To ensure correct interpretation of figures relating to the individual activities, it should be noted that:

- the business represents the sum of revenues and related costs of the Parent Company Gefran S.p.A. and of the Group subsidiaries;

- the figures for each business are provided gross of trade between different

businesses;

- inter-sector sales (trade) are booked at transfer prices that are broadly in line with

market prices;

- the costs of central functions, which mainly pertain to Gefran S.p.A., are fully allocated to the businesses, where possible, and quantified according to actual use;

they are otherwise divided according to economic -technical criteria.

Gefran Group 79 Figures by business area (Euro /000) Sensors Automation components Eliminations Not divided 30 June

2026

a Revenues 47,862 31,091 (5,138) - 73,815 b Increases for internal work 699 611 - - 1,310 c Consumption of materials and products 14,661 12,062 (5,138) - 21,585 d Added Value (a+b -c) 33,900 19,640 - - 53,540 e Other operating costs 8,126 4,686 - - 12,812 f Personnel costs 15,863 11,683 - - 27,546 g EBITDA (d -e-f) 9,911 3,271 - - 13,182 h Depreciation, amortisation and impairment 2,362 1,827 - - 4,189 i EBIT (g -h) 7,549 1,444 - - 8,993 l Gains/(Losses) from financial assets and liabilities - - - 174 174 m Gains/(Losses) from shareholdings valued at equity - - - 15 15 n Profit (loss) before tax (i±l±m) 7,549 1,444 - 189 9,182 o Taxes - - - (2,438) (2,438) p Net profit (loss) (n±o) 7,549 1,444 - (2,249) 6,744

Attributable to:

Group 6,744

Third parties -

(Euro /000) Sensors Automation components Eliminations Not divided 30 June

2025

a Revenues 47,228 29,072 (4,145) - 72,155 b Increases for internal work 349 568 - - 917 c Consumption of materials and products 13,231 12,281 (4,145) - 21,367 d Added Value (a+b -c) 34,346 17,359 - - 51,705 e Other operating costs 7,576 4,369 - - 11,945 f Personnel costs 15,333 10,663 - - 25,996 g EBITDA (d -e-f) 11,437 2,327 - - 13,764 h Depreciation, amortisation and impairment 2,314 1,670 - - 3,984 i EBIT (g -h) 9,123 657 - - 9,780 l Gains/(Losses) from financial assets and liabilities - - - (753) (753) m Gains/(Losses) from shareholdings valued at equity - - - (5) (5) n Profit (loss) before tax (i±l±m) 9,123 657 - (758) 9,022 o Taxes - - - (2,390) (2,390) p Net profit (loss) (n±o) 9,123 657 - (3,148) 6,632

Attributable to:

Group 6,618

Third parties 14

80 Half-yearly financial report as at 30 June 2026 Statement of financial position figures by business area (Euro /000) Sensors Automation

components Not

divided 30 June 2026 Sensors Automation

components Not

divided 31

December

2025

Intangible assets 9,978 4,708 - 14,686 9,459 4,601 - 14,060 Tangible assets 26,824 19,583 - 46,407 25,347 16,614 - 41,961 Other non -current assets - - 9,003 9,003 - - 8,851 8,851 Net non -current assets 36,802 24,291 9,003 70,096 34,806 21,215 8,851 64,872

Inventories 9,487 8,169 - 17,656 8,087 7,095 - 15,182 Trade receivables 16,937 14,198 - 31,135 13,821 12,195 - 26,016 Trade payables (13,007) (12,583) - (25,590) (11,771) (9,800) - (21,571) Other assets/liabilities (5,632) (5,044) (1,050) (11,726) (5,939) (4,938) (1,286) (12,163) Working capital 7,785 4,740 (1,050) 11,475 4,198 4,552 (1,286) 7,464

Provisions for risks and future liabilities (597) (537) (32) (1,166) (567) (505) (84) (1,156) Deferred tax provisions - - (1,011) (1,011) - - (985) (985) Employee benefits (786) (1,497) - (2,283) (763) (1,445) - (2,208)

Net invested capital 43,204 26,997 6,910 77,111 37,674 23,817 6,496 67,987

Group Shareholders ’ equity - - 102,661 102,661 - - 100,829 100,829 Shareholders ’ equity of minority interests - - - - - - - -

Shareholders ’ equity 102,661 102,661 - - 100,829 100,829

Non-current financial payables - - 9,640 9,640 - - 11,697 11,697 Current financial payables - - 4,558 4,558 - - 4,921 4,921 Financial payables for IFRS 16 leases (current and non -

current) - - 3,602 3,602 - - 3,609 3,609 Financial liabilities for derivatives (current and non -

current) - - 66 66 - - 178 178 Financial assets for derivatives (current and non -current) - - - - - - (5) (5) Other non -current financial investments - - (100) (100) - - (102) (102) Cash and cash equivalents and current financial receivables - - (43,316) (43,316) - - (53,140) (53,140) Net debt relating to operations - - (25,550) (25,550) - - (32,842) (32,842)

Total sources of financing - - 77,111 77,111 - - 67,987 67,987

Gefran Group 81 Investments by business area (Euro /000) Sensors Automation

components Total

Intangible assets 803 731 1,534 Tangible assets 2,584 3,940 6,524 Total 3,387 4,671 8,058

Secondary segment - geographical region Revenues by geographical region (Euro /000) 30 June 2026 30 June 2025 Change %

Italy 23,301 22,586 715 3.2% European Union 18,066 18,600 (534) -2.9% Europe non -EU 2,505 1,980 525 26.5% North America 6,188 6,624 (436) -6.6% South America 3,044 3,103 (59) -1.9% Asia 19,711 18,404 1,307 7.1% Rest of the world 143 237 (94) -39.7% Total 72,958 71,534 1,424 2.0% Investments by geographical region 30 June 2026 30 June 2025 (Euro /000) intangible assets and goodwill tangible assets intangible assets and goodwill tangible assets

Italy 1,302 6,125 1,021 1,675 European Union - 3 4 46 Europe non -EU 174 11 99 29 North America - 32 - 4 South America - 32 2 42 Asia 58 321 - 166 Total 1,534 6,524 1,126 1,962 Non-current assets by geographical region (Euro /000) 30 June 2026 31 December 2025 Change %

Italy 51,490 47,344 4,146 8.8% European Union 2,845 2,600 245 9.4% Europe non -EU 3,190 3,113 77 2.5% North America 7,188 7,065 123 1.7% South America 667 621 46 7.4% Asia 4,816 4,236 580 13.7% Total 70,196 64,979 5,217 8.0%

82 Half-yearly financial report as at 30 June 2026

11. Goodwill

The “Goodwill ” item amounted to 5,996 thousand Euro at 30 June 2026, showing the following changes.

(Euro /000) 31 December 2025 Increases Decreases Exchange rate differences 30 June 2026

Gefran France S.A. 1,310 - - - 1,310 Gefran Inc. 2,499 - - 78 2,577 Gefran Schweiz AG 1,954 - - - 1,954 CZ Elettronica S.r.l. 155 - - - 155 Total 5,918 - - 78 5,996 During the first half of 2026, the difference in the value of goodwill relating to the US subsidiary Gefran Inc was recognised (positive at 78 thousand Euro).

The goodwill acquired on business combinations was allocated to specific Cash Generating Units for impairment testing purposes.

The carrying value of goodwill is analysed below:

(Euro /000) Year Goodwill France Goodwill USA Goodwill

Switzerland Goodwill

Italy Total

Sensors 2026 1,310 2,577 1,954 - 5,841 2025 1,310 2,499 1,954 - 5,763

Automation

components 2026 - - - 155 155 2025 - - - 155 155 Total 2026 1,310 2,577 1,954 155 5,996 2025 1,310 2,499 1,954 155 5,918 When determining value in use, Management considers the specific cash flows forecast in the Group ’s Plan plus the projected and terminal values, which represent the ability to generate cash flows beyond the explicit forecasting horizon.

In preparing the half -yearly financial report, impairment tests are performed on goodwill values in the presence of any impairment indicators.

When examining the possible presence of impairment indicators and developing its own assessments, Management took into account the plans of the companies that carry a goodwill as well as the results of the same and the operating cash flow generated by the Group, confirming the substantial absence of impairment indicators.

In addition, the relationship between stock market capitalization and the carrying value of the Group ’s shareholders ’ equity was also verified, which as of 30 June 2026 was largely positive.

12. Intangible assets This item comprises solely assets with a finite life. Their carrying amount rose from 8,142 thousand Euro at 31 December 2025 to 8,690 thousand Euro at 30 June 2026, as analysed below.

Gefran Group 83 Historical cost 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Development costs 19,331 21 - 479 - 19,831

Intellectual property

rights 9,146 29 - 23 33 9,231 Other assets 10,367 76 (82) 5 30 10,396 Assets in progress and payments on account 1,629 1,408 - (509) 1 2,529 Total 40,473 1,534 (82) (2) 64 41,987

Accumulated

depreciation 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Development costs 14,703 712 - - - 15,415

Intellectual property

rights 8,658 139 - - 31 8,828 Other assets 8,970 156 (82) - 10 9,054 Total 32,331 1,007 (82) - 41 33,297

Net value 31 December 2025 30 June 2026 Change

(Euro /000)

Development costs 4,628 4,416 (212) Intellectual property rights 488 403 (85) Other assets 1,397 1,342 (55) Assets in progress and payments on account 1,629 2,529 900 Total 8,142 8,690 548 The net carrying amount of development costs includes the capitalisation of costs incurred for the

following activities:

- 1,352 thousand Euro for the sensors segment, relating to mobile hydraulic lines, deformation sensors, pressure transducers, non -contact linear transducers, industrial and melt pressure;

- 3,064 thousand Euro for component lines for the ranges of regulators, power control and automation platforms.

These assets are estimated to have a useful life of 5 years.

Intellectual property rights comprise the costs incurred to purchase IT system management software and user licences for third -party software, as well as patents. These assets have a useful life of 3 years.

Assets in progress and payments on account include 2,127 thousand Euro in development costs, of which 99 thousand Euro which pertain to the automation components business and 1,228 thousand Euro to the sensors business, the benefits of which will be reflected in the income statement as from next y ear; therefore, they have not been amortised.

The item other assets mostly includes the costs incurred by the Parent Company Gefran S.p.A., both in the course of previous years as well as in the current one, to implement ERP SAP, Business Intelligence (BW), Customer Relationship Management (CRM) and other management softwa re programmes. These assets have a useful life of 5 years.

84 Half-yearly financial report as at 30 June 2026 The increase in the historical cost of intangible assets, totalling 1,534 thousand Euro in the first six months of 2026 , includes 1,238 thousand Euro on the capitalisation of internal costs (1,126 thousand Euro in the first half of 2025).

The changes during the first six months of 2025 are analysed below:

Historical cost 31 December 2024 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2025

(Euro /000)

Development costs 16,313 330 - 1,750 - 18,393

Intellectual property

rights 9,000 43 - 23 (45) 9,021 Other assets 9,589 44 - 38 (48) 9,623 Assets in progress and payments on account 2,875 709 - (1,815) 2 1,771 Total 37,777 1,126 - (4) (91) 38,808

Accumulated

depreciation 31 December 2024 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2025

(Euro /000)

Development costs 13,409 577 - - - 13,986

Intellectual property

rights 8,331 196 - - (43) 8,484 Other assets 8,788 96 - - (15) 8,869 Total 30,528 869 - - (58) 31,339

Net value 31 December 2024 30 June 2025 Change

(Euro /000)

Development costs 2,904 4,407 1,503 Intellectual property rights 669 537 (132) Other assets 801 754 (47) Assets in progress and payments on account 2,875 1,771 (1,104) Total 7,249 7,469 220

13. Property, plant, machinery and tools The item went from a net balance of 38,466 thousand Euro at 31 December 2025 to a net balance of 42,865 thousand Euro at 30 June 2026. The change is illustrated below.

Gefran Group 85 Historical cost 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Land 3,787 - - - 18 3,805 Industrial buildings 36,327 363 - 138 323 37,151 Plant and machinery 46,756 505 (74) 418 332 47,937 Industrial and commercial equipment 18,828 113 (359) 170 20 18,772 Other assets 8,709 160 (228) 24 90 8,755 Assets in progress and payments on account 2,607 5,383 - (748) 10 7,252 Total 117,014 6,524 (661) 2 793 123,672

Accumulated

depreciation 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Industrial buildings 19,766 426 - - 97 20,289 Plant and machinery 34,901 1,314 (62) - 240 36,393 Industrial and commercial equipment 17,034 450 (358) - 13 17,139 Other assets 6,847 290 (227) - 76 6,986 Total 78,548 2,480 (647) - 426 80,807

Net value 31 December 2025 30 June 2026 Change

(Euro /000)

Land 3,787 3,805 18 Industrial buildings 16,561 16,862 301 Plant and machinery 11,855 11,544 (311) Industrial and commercial equipment 1,794 1,633 (161) Other assets 1,862 1,769 (93) Assets in progress and payments on account 2,607 7,252 4,645 Total 38,466 42,865 4,399 The historical cost increases of property, plant, machinery and tools in the first half of 2026 totalled 6,524 thousand Euro. The most significant changes relate to:

- production and laboratory facilities, machinery and tools for the Group ’s Italian plants, totalling 1,667 thousand Euro (of which 1,362 thousand Euro for the production departments of the sensors business in the Parent Company) and for the Group ’s foreign plants for a total of 192 thousand Euro;

- upgrading of the buildings housing the activities of the Parent Company Gefran S.p.A., for a total of 4,471 thousand Euro, of which 3,906 thousand Euro classified as assets in progress, related to the construction site of the new production and technological hub in Provaglio d’Iseo, Via Stazione Vecchia, which will become the Group ’s new headquarters in 2027 (renovation and expansion of a building already owned by the company);

- adaptation of the offices hosting the activities of the Group ’s subsidiaries for 57 thousand Euro;

- renewal of electronic office machines and equipment for IT systems totalling 133 thousand Euro.

86 Half-yearly financial report as at 30 June 2026 The increases described include 72 thousand Euro as internal capitalised costs (56 thousand Euro in the first six months of 2025).

The change in exchange rates had a positive effect on the item, amounting to 367 thousand Euro (negative by 904 thousand Euro at 30 March 2025).

The changes during the first six months of 2025 are reported below:

Historical cost 31

December

2024 Increases Decreases Reclassifications Change in

scope of

consolidation Exchange

rate

differences 30

June

2025

(Euro /000)

Land 3,863 - - - - (74) 3,789 Industrial buildings 36,499 3 - - - (768) 35,734 Plant and machinery 44,014 390 (4) 694 101 (573) 44,622

Industrial and

commercial

equipment 18,018 106 (5) 161 70 (11) 18,339 Other assets 8,103 154 (48) 58 423 (223) 8,467 Assets in progress and payments on account 1,443 1,309 (17) (909) - (8) 1,818 Total 111,940 1,962 (74) 4 594 (1,657) 112,769

Accumulated

depreciation 31

December

2024 Increases Decreases Reclassifications Change in

scope of

consolidation Exchange

rate

differences 30

June

2025

(Euro /000)

Industrial buildings 18,993 461 - - - (147) 19,307 Plant and machinery 32,839 1,292 - - 90 (429) 33,792

Industrial and

commercial

equipment 16,311 411 (8) - 70 (10) 16,774 Other assets 6,199 273 (44) - 414 (167) 6,675 Total 74,342 2,437 (52) - 574 (753) 76,548

Net value 31 December 2024 30 June 2025 Change

(Euro /000)

Land 3,863 3,789 (74) Industrial buildings 17,506 16,427 (1,079) Plant and machinery 11,175 10,830 (345) Industrial and commercial equipment 1,707 1,565 (142) Other assets 1,904 1,792 (112) Assets in progress and payments on account 1,443 1,818 375 Total 37,598 36,221 (1,377)

Gefran Group 87 14. Right -of-Use assets The value of “Right -of-Use assets ” at 30 June 2026 amounted to 3,542 thousand Euro, relating to the recognition of the value of leased assets, in accordance with accounting standard IFRS 16. The following is a summary of the transactions carried out in the first half of 2026.

Historical cost 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Real estate 5,615 334 (499) (187) 3 5,266 Vehicles 3,992 346 (441) (936) 40 3,001 Office machines 26 - - - - 26 Machinery and equipment 144 46 (40) - - 150 Total 9,777 726 (980) (1,123) 43 8,443

Accumulated

depreciation 31

December

2025 Increases Decreases Reclassifications Exchange

rate

differences 30 June

2026

(Euro /000)

Real estate 3,578 295 (490) (195) 5 3,193 Vehicles 2,615 389 (381) (1,009) 25 1,639 Office machines 14 3 - - - 17 Machinery and equipment 75 15 (38) - - 52 Total 6,282 702 (909) (1,204) 30 4,901

Net value 31 December 2025 30 June 2026 Change

(Euro /000)

Real estate 2,037 2,073 36 Vehicles 1,377 1,362 (15) Office machines 12 9 (3) Machinery and equipment 69 98 29 Total 3,495 3,542 47 As of 1 January 2026, the Group had a total of 168 contracts in place (covered by an initial analysis) for the leasing of vehicles, machinery, industrial equipment and electronic office machinery, as well as for the rental of real estate. Practical expedie nts allowed by the IASB have been employed, such as excluding contracts with a residual duration of less than 12 months and contracts for assets whose fair value is below the conventional threshold of 5 thousand US dollars (modest unit value). As of 30 June 2026, 179 contracts were outstanding of which, based on their value and duration:

- 165 contracts fell within the scope of application of IFRS 16;

- 14 contracts were excluded from the scope of application of the standard (8 for terms of less than 12 months and 6 for fair value considered insignificant).

The historical cost increases recorded in the year (totalling 726 thousand Euro) include new contracts signed, as well as the effect of the adjustment of contracts already in place and extended or for which new conditions have been defined. They are summar ized as follows:

88 Half-yearly financial report as at 30 June 2026

- real estate, for 334 thousand Euro, mainly relating to the renewal of the lease for the property housing the subsidiary Gefran France and the signing of a new lease for the offices of Gefran Asia, at the end of the previous one;

- vehicles, for the amount of 346 thousand Euro, which include both the effect of extensions and 17 new car rental contracts signed by the Group in the first six months of 2026, part of which replaces expired contracts.

As of 30 June 2026 , the historical cost decreased by 980 thousand Euro, only in part related to termination of vehicle rental agreements in advance of their original expiry date, for which a capital gain of 1 thousand Euro was recorded. This item also includes the write -off of vehicle rental agreements that expired before 31 December 2025, with zero carrying value, leading to a decrease in the historical cost and, in equal measure, the related depreciation provision.

Changes related to the first six months of 2025 are shown below:

Historical cost 31 December 2024 Increases Decreases Reclassifications Exchange

rate

differences 30 June 2025

(Euro /000)

Real estate 5,314 250 - - (107) 5,457 Vehicles 4,313 538 (212) - (25) 4,614 Office machines 26 - - - - 26

Machinery and

equipment 78 - - - - 78 Total 9,731 788 (212) - (132) 10,175

Accumulated

depreciation 31 December 2024 Increases Decreases Reclassifications Exchange

rate

differences 30 June 2025

(Euro /000)

Real estate 3,048 286 - - (53) 3,281 Vehicles 2,849 383 (107) - (23) 3,102 Office machines 9 3 - - - 12

Machinery and

equipment 55 6 - - - 61 Total 5,961 678 (107) - (76) 6,456

Net value 31 December 2024 30 June 2025 Change

(Euro /000)

Real estate 2,266 2,176 (90) Vehicles 1,464 1,512 48 Office machines 17 14 (3) Machinery and equipment 23 17 (6) Total 3,770 3,719 (51)

Gefran Group 89 15. Shareholdings valued at equity At 30 June 2026, the following equity investments were all registered in the Parent Company Gefran

S.p.A.:

(Euro /000) 30 June 2026 31 December 2025 Change

Axel S.r.l. Shareholding 15.00% 15.00% Via del Cannino, 3 Investment value 137 137 -

Crosio della Valle (VA) Adjustment provision 78 63 15 Net value 215 200 15

Robot At Work S.r.l. Shareholding 24.83% 24.83% Via Primo Maggio, 40/E Investment value 576 576 -

Rovato (BS) Adjustment provision - - -

Net value 576 576 -

40Factory S.r.l. Shareholding 22.00% 22.00% Via Vittore Calligari, 21 Investment value 4,000 4,000 -

Piacenza (PC) Adjustment provision - - -

Net value 4,000 4,000 -

Total 4,791 4,776 15 It should be noted that, in relation to the shareholding in Robot At Work S.r.l. (acquired in 2023 for a value of 576 thousand Euro as consideration for 24.83% of the company), just like the shareholding in 40Factory S.r.l. (acquired in the first quarter o f 2025 for a value of 4,000 Euro representing 22% of the share capital), the carrying amount is higher than the portion of shareholders ’ equity, since implicit goodwill arose for both companies at the time of their acquisition.

The change in the adjustment provision for the shareholding in Axel S.r.l. is exclusively due to the company ’s economic results.

16. Net working capital “Net Working Capital ” totalled 23,201 thousand Euro, compared with 19,627 thousand Euro as at 31 December 2025, and is analysed below:

(Euro /000) 30 June 2026 31 December 2025 Change

Inventories 17,656 15,182 2,474 Trade receivables 31,135 26,016 5,119 Trade payables (25,590) (21,571) (4,019) Net amount 23,201 19,627 3,574

The value of inventories at 30 June 2026 was 17,656 thousand Euro, up by 2,474 thousand Euro compared to 31 December 2025 . The change in exchange rates, which was positive at 308 thousand Euro, partly contributed to the increase. In general, the increase in inventories was intended to meet customer delivery requests scheduled for the following quarter. The economic impact of the change in inventories, compared to the closing figure of the previous period, showed an increase of 2,166 thousand Euro, since the average progressive exchange rate for the year is used for the economic recognition of events.

90 Half-yearly financial report as at 30 June 2026 The balance is analysed as follows:

(Euro /000) 30 June 2026 31 December 2025 Change

Raw materials, consumables and supplies 8,703 7,959 744 provision for impairment of raw materials (1,425) (1,299) (126) Work in progress and semi -finished products 7,235 5,952 1,283 provision for impairment of work in progress (636) (523) (113) Finished products and goods for resale 4,714 3,888 826 provision for impairment of finished products (935) (795) (140) Total 17,656 15,182 2,474 The gross value of inventories was 20,652 thousand Euro overall, up by 2,853 thousand Euro since the end of 2025.

The provision for obsolete and slow -moving inventories was adjusted as necessary during the first six months of 2026, resulting in specific provisions totalling 902 thousand Euro (695 thousand Euro in the first six months of 2025), while releases for surpl us were stated in the amount of 25 thousand Euro (no release recognised in the first half of 2025 ). The changes in the provision in the first half of 2026 and 2025 are shown below.

(Euro /000) 31

December

2025 Provisions Uses Releases Exchange

rate

differences 30 June

2026

Provision for impairment of inventory 2,617 902 (532) (25) 34 2,996

(Euro /000) 31

December

2024 Provisions Uses Releases Exchange

rate

differences 30 June

2025

Provision for impairment of inventory 3,122 695 (259) - (69) 3,489

Trade receivables amounted to 31,135 thousand Euro, compared to 26,016 thousand Euro as at 31 December 2025, up by 5,119 thousand Euro.

(Euro /000) 30 June 2026 31 December 2025 Change

Receivables from customers 32,268 27,051 5,217 Provision for doubtful receivables (1,133) (1,035) (98) Net amount 31,135 26,016 5,119 The increase, compared to the end of the previous year, is consistent with the increase in the number of average days for collection compared to the average of the previous period, as well as with the level of revenues generated in the first two quarters o f 2026, an increase compared to the last two quarters of the previous year.

Gefran Group 91 There is no significant concentration of sales to individual customers: this phenomenon involves less than 5% of Group revenues.

The Group monitors the receivables most at risk and also initiates appropriate legal action. The carrying value of trade receivables is deemed to approximate their fair value.

Receivables are adjusted to their estimated realisable value by the allowance for doubtful accounts, which is determined by analysing individual debtor positions and considering past experience in each business area and geographical region, as required by IFRS 9. The allowance was used in the quarter to cover losses on debt that can no longer be collected. The allowance represents an estimate of the current risk and showed the following changes in the first six months of 2026 and 2025.

(Euro /000) 31

December

2025 Provisions Uses Releases Exchange

rate

differences 30 June

2026

Provision for doubtful receivables 1,035 97 - (10) 11 1,133

(Euro /000) 31

December

2024 Provisions Uses Releases Exchange

rate

differences 30 June

2025

Provision for doubtful receivables 896 36 (11) (11) (5) 905

Trade payables amounted to 25,590 thousand Euro, compared to 21,571 thousand Euro at 31 December 2025, up by 4,019 thousand Euro. This item is analysed below:

(Euro /000) 30 June 2026 31 December 2025 Change

Payables to suppliers 21,482 18,397 3,085 Payables to suppliers for invoices to be received 4,108 3,174 934 Total 25,590 21,571 4,019

17. Net financial position The net financial position is analysed in the following table:

92 Half-yearly financial report as at 30 June 2026 (Euro /000) 30 June 2026 31 December

2025 Change

Cash and cash equivalents and current financial receivables 43,316 53,140 (9,824) Financial assets for derivatives - 5 (5) Other non -current financial investments 100 102 (2) Non-current financial payables (9,640) (11,697) 2,057 Non-current financial payables for IFRS 16 leases (2,373) (2,379) 6 Current financial payables (4,558) (4,921) 363 Current financial payables for IFRS 16 leases (1,229) (1,230) 1 Financial liabilities for derivatives (66) (178) 112 Total 25,550 32,842 (7,292) The net financial position at 30 June 2026 was positive by 25,550 thousand Euro, down by 7,292 thousand Euro since the end of 2025, when it was positive by 32,842 thousand Euro.

The change in net financial position mainly reflects the positive cashflow generated by ordinary operations (9,071 thousand Euro), absorbed by the disbursements for the technical investments made during the first six months of the year (8,058 thousand Euro ) and by the price paid for the acquisition of the residual 40% of the shares in CZ Elettronica S.r.l. (580 thousand Euro), as a result of which Gefran now holds 100% of the Company (operation described in the Significant events during the first half of 2026 ). The payment of dividends (6,107 thousand Euro), taxes (1,006 thousand Euro), leases and interest (752 thousand Euro and 251 thousand Euro, respectively) contributed to the decrease in financial resources. In addition to the flows described above, the change in the Group ’s available financial position as at 30 June 2026 includes the positive effect of the exchange rate difference for foreign currencies compared with the previous year (estimated overall at 468 thousand Euro).

Cash and cash equivalents amounted to 43,316 thousand Euro at 30 June 2026, compared to 53,140 thousand Euro at 31 December 2025. This item is analysed below:

(Euro /000) 30 June 2026 31 December 2025 Change

Cash in bank deposits 43,301 53,125 (9,824) Cash 15 15 -

Total 43,316 53,140 (9,824) The technical forms used at 30 June 2026 are shown below:

- maturities: collectible on demand;

- counterparty risk: deposits are made with leading banks;

- country risk: deposits are made in the countries in which Group companies have their registered offices.

In order to support its current assets, the Group has various credit lines available from banks and other financial institutions, mainly in the form of advances against invoices, cash flexibility and mixed credit lines totalling 26,650 thousand Euro. As of 30 June 2026 there was no use of these lines, so the remaining liquid assets are equal to the total amount granted. No fees are due if these lines are not used.

Gefran Group 93 Current financial payables as at 30 June 2026 posted a decrease in the amount of 363 thousand Euro compared to the end of 2025; they break down as follows:

(Euro /000) 30 June 2026 31 December 2025 Change

Current portion of debt 4,367 4,872 (505) Current overdrafts 150 4 146 Other payables 41 45 (4) Total 4,558 4,921 (363)

Non-current financial payables are analysed as follows:

Bank

(Euro /000) 30 June 2026 31 December 2025 Change

SIMEST 60 120 (60)

Crédit Agricole 5,080 6,208 (1,128)

BNL 4,164 4,996 (832)

SIMEST 298 297 1

SIMEST 38 76 (38)

Total 9,640 11,697 (2,057) The loans, detailed in the following table, have the following characteristics:

Bank

(Euro /000) Amount

disbursed Signing

date Balance at

30 June

2026 Of which

within 12

months Of

which

beyond

12 months Interest rate Maturity Repayment

method

entered into

by Gefran

S.p.A. (IT)

Intesa (ex UBI) 3,000 24Jul 20 252 252 - Euribor 6m + 1% 24Jul 26 half-yearly SIMEST 480 9Jul 21 180 120 60 Fixed 0.32% 31Dec

27 half-yearly

Crédit Agricole 13,000 29Sep 23 7,334 2,254 5,080 Euribor 3m + 0.88% 28Sep

29 quarterly

BNL 10,000 27Oct 23 5,828 1,664 4,164 Euribor 3m + 0.93% 27Oct 29 quarterly SIMEST 297 31Oct 25 298 - 298 Fixed 0.32% 31Oct 31 half-yearly

entered into

by Gefran

Soluzioni

S.r.l. (IT)

SIMEST 307 21May

21 115 77 38 Fixed 0.32% 31Dec

27 half-yearly

Total 14,007 4,367 9,640

It should be noted that the loan with Crédit Agricole requires compliance with a financial parameter (covenant), calculated at the consolidated level, and in particular the ratio of net financial debt (NFP) to EBITDA < 3.25x. Failure to comply with the rat io could result in the lending institution being entitled to demand repayment. The verification of contractual constraints is updated on a quarterly basis by the Administration, Finance and Control Director and, specifically, the ratio as at 30 June 2026 is largely respected. The loan, therefore, is represented according to the forms originally provided for in the contract.

94 Half-yearly financial report as at 30 June 2026 With the exception of the contract described above, none of the remaining loans outstanding at 30 June 2026 contains clauses requiring compliance with economic and financial requirements (covenants).

Management considers that the credit lines currently available, together with the cash flow generated by operations, will enable Gefran to meet its financial requirements resulting from investing activities, working capital management and the repayment of debt at its natural maturity.

Variable rate payables expose the Group to a risk arising from interest rate volatility. In this regard, the Group ’s Administration and Finance Department monitors the exposure to interest rate risk and proposes appropriate hedging strategies to contain the exposure within the limits defined and agreed in the Group ’s policies, using derivatives, Interest Rate Swaps (IRS) and Interest Rate Caps (CAP) when necessary. No new contracts were signed in the first half -year of 2026.

All derivatives outstanding at 30 June 2026 are stipulated by the Parent Company to hedge the interest rate risk on variable rate loans, which could occur in the event of a change in the Euribor. At 30 June 2026, no derivatives had been arranged to hedge exchange rate risk.

All derivatives were tested for effectiveness as at 30 June 2026, with positive results.

At 30 June 2026 there were no financial assets for derivatives , while the liabilities for derivatives amounted to 66 thousand Euro, due to the fair value of the individual contracts.

as at 30 June 2026 as at 31 December 2025 (Euro /000) Positive fair value Negative fair value Positive fair value Negative fair

value

Foreign exchange rate risk - - - -

Interest rate risk - (66) 5 (178) Total cash flow hedge - (66) 5 (178) The following details are provided on hedges, showing the related fair value, positive and negative

respectively:

Bank

(Euro /000) Notional

principal Signing

date Maturity Notional as at 30

June

2026 Derivative Fair

Value

as at 30

June

2026 Long

position rate Short

position rate

Intesa (ex UBI) 3,000 24Jul 20 24Jul 26 252 IRS - Fixed -0.115% Euribor 3m Total financial assets for derivatives – Interest rate risk -

Gefran Group 95

Bank

(Euro /000) Notional

principal Signing

date Maturity Notional as at 30

June

2026 Derivative Fair

Value

as at 30

June

2026 Long

position rate Short

position rate

BNL 10,000 29Jan 24 27Oct 29 5,828 IRS (41) Fixed 2,94% Euribor 3m

(Floor: 1.00%)

Crédit Agricole 13,000 12Jan 24 28Sep 29 7,334 IRS (25) Fixed 2,75% Euribor 3m Total financial liabilities for derivatives – Interest rate risk (66)

Financial payables for IFRS 16 leases (current and non -current) at 30 June 2026 amounted to 3,602 thousand Euro and reflect the application of IFRS 16, which requires the initial recognition of financial payables corresponding to the value of the RoU assets classified as non -current assets. Financial payables for leases under IFRS 16 are classified on the basis of their maturity as either current payables (due within one year), amounting to 1,229 thousand Euro, or non -current payables (due beyond one year), amounting to 2,373 thousand Euro.

Changes in this item in the first half of 2026 and 2025 are detailed below:

(Euro /000) 31

December

2025 Increases Decreases Reclassifications Exchange rate differences 30 June

2026

Leasing

payables under

IFRS 16 3,609 802 (890) 69 12 3,602

Total 3,609 802 (890) 69 12 3,602

(Euro /000) 31

December

2024 Increases Decreases Reclassifications Exchange rate differences 30 June

2025

Leasing

payables under

IFRS 16 3,859 836 (820) - (62) 3,813

Total 3,859 836 (820) - (62) 3,813

Lastly, a breakdown of financial debt, as per Esma and Consob regulations, is set out below:

96 Half-yearly financial report as at 30 June 2026 (Euro /000) 30 June 2026 31 December

2025 Change

A. Cash 43,316 53,140 (9,824) B. Cash equivalents - - -

C. Other current financial assets - - -

D. Cash and cash equivalents ( A ) + ( B ) + ( C ) 43,316 53,140 (9,824)

Current financial liabilities for derivatives - - -

Current financial payables (1,420) (1,279) (141) E. Current financial payables (1,420) (1,279) (141) F. Current portion of long -term debt (4,367) (4,872) 505 G. Total current financial debts (E) + (F) (5,787) (6,151) 364 H. Net current financial debt (I) + (D) 37,529 46,989 (9,460) I. Non -current financial debt (12,013) (14,076) 2,063 Non-current financial liabilities for derivatives (66) (178) 112 J. Financial debt instruments (66) (178) 112 K. Trade payables and Other non -current financial debts - - -

L. Non -current financial debt (I) + (J) + (K) (12,079) (14,254) 2,175

M. Total financial debt (H) + (L) 25,450 32,735 (7,285) of which to minorities: 25,450 32,735 (7,285)

18. Shareholders ’ equity Consolidated shareholders ’ equity is analysed as follows:

(Euro /000) 30 June 2026 31 December 2025 Change

Portion pertaining to the Group 102,661 100,829 1,832 Portion pertaining to minority interests - - -

Shareholders ’ equity 102,661 100,829 1,832 Shareholders ’ equity at 30 June 2026 was 102,661 thousand Euro, up by 1,832 thousand Euro compared with 31 December 2025.

The change is driven by the recognition of the profit for the period, amounting to 6,744 thousand Euro, and by the movement of the translation reserve, positive for 1,127 thousand Euro. The payment of dividends on the results of the previous year, for 6,107 thousand Euro, absorbs part of the increase.

Share capital amounts to 14,400 thousand Euro, represented by 14,400,000 ordinary shares with a nominal value of 1 Euro each.

As at 31 December 2025, Gefran S.p.A. held 198,405 own shares, equal to 1.38% of the total, with an average book value of 8.6483 Euro per share and a total value of 1,716 thousand Euro. During the first six months of 2026, as at the date of this publicatio n, no trading activities took place;

therefore, the situation is unchanged with respect to what is described above.

Gefran Group 97 The Company has not issued any convertible bonds.

See the Statement of changes in shareholders ’ equity for an analysis of changes in the equity reserves during the period.

The balances of the “Reserve for the measurement of securities at fair value ” and the “Reserve for the measurement of derivatives at fair value ” are shown below:

(Euro /000) 30 June 2026 31 December 2025 Change

Balance at 1 January 10 42 (32) Woojin Plaimm Co Ltd Shares (15) (32) 17 Tax effect - - -

Net amount (5) 10 (15)

(Euro /000) 30 June 2026 31 December 2025 Change

Balance at 1 January (131) (210) 79 Change in fair value derivatives 107 104 3 Tax effect (25) (25) -

Net amount (49) (131) 82

19. Earnings per share Basic and diluted earnings per share are shown in the table below:

30 June 2026 30 June 2025

Basic earnings per share

- Profit (loss) for the period pertaining to the Group (Euro/000) 6,744 6,618

- Average No. of ordinary shares (No./000,000) 14.202 14.202

- Basic earnings per ordinary share 0.475 0.466

Diluted earnings per share

- Profit (loss) for the period pertaining to the Group (Euro/000) 6,744 6,618

- Average No. of ordinary shares (No./000,000) 14.202 14.202

- Basic earnings per ordinary share 0.475 0.466

Average number of ordinary shares 14,201,595 14,201,595

For the purpose of calculating earnings per share, the net profit (loss) for the period of Gefran S.p.A.

is reconciled with that attributable to the Group in the schedule provided in the Gefran consolidated results section of the Report on Operations included in this Half -yearly Financial Report.

98 Half-yearly financial report as at 30 June 2026 20. Current and non -current provisions “Non-current provisions ” totalled 413 thousand Euro and break down as follows:

(Euro /000) 31

December

2025 Provisions Uses Releases Exchange

rate

differences 30 June

2026

Gefran S.p.A. risk provisions

- for legal disputes - 50 (31) (19) - -

- other provisions 50 (50) - - - -

Elettropiemme S.r.l. risk provisions

- other provisions 413 - - - - 413 Total 463 - (31) (19) - 413 The change relates to the use of a portion of the provision (31 thousand Euro) following the settlement of a dispute between Gefran S.p.A. and a former employee, which led to the release of the portion previously set aside (19 thousand Euro) which is now i n excess of what is needed.

Current provisions amounted to 753 thousand Euro at 30 June 2026 , up by 60 thousand Euro since 31 December 2025, as analysed below:

(Euro /000) 31

December

2025 Provisions Uses Releases Exchange

rate

differences 30 June

2026

FISC 31 1 - - - 32

Product warranty 662 184 (126) - 1 721 Total 693 185 (126) - 1 753 The change relates to the item “Product warranty ”, relating to the charges provided for repairs on products under warranty in the Parent Company Gefran S.p.A. and in the production subsidiaries;

during the first half of 2026, provisions were recorded for 185 thousand Euro against uses for 126 thousand Eu ro (there were no surplus releases). As of 30 June 2026, provisions have been verified as meeting needs, with a positive outcome.

The “FISC ” item mainly includes contractual treatments existing at the Parent Company Gefran S.p.A.

21. Revenues from product sales “Revenues from product sales ” during the period ended 30 June 2026 amounted to 72,958 thousand Euro, up 2% compared with those reported at 30 June 2025, which amounted to 71,534 thousand Euro. The increase is due to the higher revenues generated by the business of CZ Elettronica S.r.l .

(acquired in April 2025 and now fully operational), without which the increase compared to the first half of 2025 figure would be 1.5%.

Total revenues include revenues from services provided totalling 1,116 thousand Euro (1,271 thousand Euro as at 30 June 2025).

Revenues from sales and services are analysed by business area in the following table:

Gefran Group 99 (Euro /000) 30 June 2026 30 June 2025 Change %

Sensors 47,060 46,606 454 1.0% Automation components 25,898 24,928 970 3.9% Total 72,958 71,534 1,424 2.0% For comments on the performance of the various areas and geographical regions, please refer to the Gefran consolidated results section of the Report on Operations.

22. Other revenues and income Other operating revenues and income amounted to 857 thousand Euro, compared with 621 thousand Euro in the first half of 2025, as shown in the following table:

(Euro /000) 30 June 2026 30 June 2025 Change %

Recovery of company canteen expenses 13 13 - 0.0% Insurance reimbursements 75 - 75 n.s.

Government grants 4 18 (14) -77.8% Other income 765 590 175 29.7% Total 857 621 236 38.0% The item “Other income ” amounted to 765 thousand Euro, up by 175 thousand Euro compared to the figure recorded at 30 June 2025. It includes, among others, the chargebacks for R&D specifically requested by customers, as well as the recognition of tax credits for investing in assets, Industry 4.0 and Industry 5.0 (amounting to 447 thousand Euro in the first half of 2026 , while they amounted to 387 thousand Euro in the previous period), in addition to the contributions received from Fondimpresa (97 thousand Euro at 30 June 2026).

The item “Government grants ” amounting to 4 thousand Euro, went down by 14 thousand Euro on the figure for the first half of 2025, when it included, inter alia, grants for the installation of electric vehicle charging stations (investment made in the Parent Company Gefran S.p.A. in 2 024).

23. Costs of raw materials and accessories The costs of raw materials and accessories amounted to 23,751 thousand Euro, compared with 21,547 thousand Euro in the period ended 30 June 2025. The change is shown below:

(Euro /000) 30 June 2026 30 June 2025 Change

Raw materials and accessories 23,751 21,547 2,204 Total 23,751 21,547 2,204 The change, amounting to 2,204 thousand Euro, is due to the greater need for raw materials, in view of the increase in sales volumes compared to the first half of 2025.

100 Half-yearly financial report as at 30 June 2026 24. Service costs Service costs amounted to 12,215 thousand Euro, an overall increase of 655 thousand Euro compared with the total reported at 30 June 2025 of 11,560 thousand Euro. They are analysed

below:

(Euro /000) 30 June 2026 30 June 2025 Change

Services 11,792 11,195 597 Use of third -party assets 423 365 58 Total 12,215 11,560 655 With reference to the item “Services ”, the item posted an increase of 597 thousand Euro in the first half of 2026 compared to the same period in the previous year. Overall, the change is due to higher costs for advertising and trade fairs, for outsourced processing and services, for maintenance, software licences and travel, partly offset by lower personnel recruitme nt costs.

Following the adoption of IFRS 16, the lease instalments for the period no longer charged to the income statement as operating costs amounted to 752 thousand Euro (714 thousand Euro in the period ended 30 June 2025 ). Contracts that were excluded from the adoption of IFRS 16 based on the provisions of the principle itself, for which leasing fees are still recognised in the income statement, registered on 30 June 2026 costs for use of third -party assets in the amount of 423 thousand Euro (equal to 365 thousand Euro in the same period in 2025).

25. Personnel costs “Personnel costs ” amounted to 27,546 thousand Euro, with an increase against the value as at 30 June 2025 of 1,550 thousand Euro. The change is shown below:

(Euro /000) 30 June 2026 30 June 2025 Change

Salaries and wages 20,758 19,704 1,054 Social security contributions 5,487 5,082 405 Post-employment benefit reserve 1,195 1,107 88 Other costs 106 103 3 Total 27,546 25,996 1,550 At the end of the half -year period, the Group had 733 employees, as compared to 744 at 30 June 2025 and 748 at 31 December 2025 . During the first quarter of 2026, 4 temporary workers were stabilised in Italian companies (in the first quarter of 2025, 10 temporary workers were stabilised in Italy).

“Social security contributions ” include costs for defined contribution plans for management (Previndai and Azimut Previdenza pension plan) amounting to 67 thousand Euro (61 thousand Euro at 30 June 2025).

“Other costs ” (106 thousand Euro at 30 June 2026), include, among other items, restructuring costs resulting from the reorganisation of Group companies, as well as sales commissions recognised to employees.

Gefran Group 101 Comparing the first half of 2026 with the same period in 2025, the average number of Group employees has risen:

30 June 2026 30 June 2025 Change

Managers 16 14 2 Clerical staff 481 462 19 Manual workers 244 246 (2) Total 741 722 19

26. Depreciation, amortisation and impairment This item totalled 4,189 thousand Euro, compared to 3,984 thousand Euro in the first half of 2025.

It breaks down as follows:

(Euro /000) 30 June 2026 30 June 2025 Change

Intangible assets 1,007 869 138 Tangible assets 2,480 2,437 43 Usage rights 702 678 24 Total 4,189 3,984 205 As from 1 January 2019, this item includes the depreciation of RoU assets pursuant to IFRS 16.

The related charge for the period ended 30 June 2026 was 702 thousand Euro (678 thousand Euro reported at 30 June 2025).

“Depreciation, amortisation and impairment ” are analysed by sector of activity in the following table:

(Euro /000) 30 June 2026 30 June 2025 Change

Sensors 2,362 2,314 48 Automation components 1,827 1,670 157 Total 4,189 3,984 205

27. Gains (losses) from financial assets/liabilities The net gain of 174 thousand Euro compares with a net loss of 753 thousand Euro in the period ended 30 June 2025, as analysed below:

102 Half-yearly financial report as at 30 June 2026 (Euro /000) 30 June 2026 30 June 2025 Change

Cash management

Income from cash management 306 446 (140) Other financial income 5 11 (6) Medium -/long -term interest (281) (397) 116 Other financial charges (26) (11) (15) Total income (charges) from cash management 4 49 (45)

Currency transactions

Exchange rate gains 313 208 105 Positive currency valuation differences 93 19 74 Exchange rate losses (216) (705) 489 Negative currency valuation differences (13) (279) 266 Total other income (charges) from currency transactions 177 (757) 934

Other

Gains from financial instruments - 2 (2) Interest on financial payables due to leasing under IFRS 16 (7) (47) 40 Total other financial income (charges) (7) (45) 38

Gains (losses) from financial assets/liabilities 174 (753) 927 Cash management, which was positive overall as at 30 June 2026 , consists of income of 311 thousand Euro (457 thousand Euro as at 30 June 2025) and charges totalling 307 thousand Euro (408 thousand Euro as at 30 June 2025).

The balance of differences on currency transactions was positive, amounting to 177 thousand Euro compared with the first half of the previous year when it was negative by 757 thousand Euro. The change is primarily a result of the trend in exchange rates be tween the Euro and the Indian Rupee and the Chinese Renminbi.

The item “Other financial charges ” includes financial charges on financial payables resulting from application of the new accounting standard IFRS 16, worth 7 thousand Euro in the first six months of 2026 (47 thousand Euro at 30 June 2025).

28. Income taxes, deferred tax assets and deferred tax liabilities The “Taxes ” item was negative by 2,438 thousand Euro; this compares with a negative balance of 2,390 thousand Euro in the first half of 2025, and breaks down as follows:

Gefran Group 103 (Euro /000) 30 June 2026 30 June 2025 Change

Current taxes

IRES (corporate income tax) (1,469) (1,326) (143) IRAP (regional production tax) (194) (295) 101 Foreign taxes (907) (832) (75) Total current taxes (2,570) (2,453) (117)

Deferred tax assets and liabilities Deferred tax liabilities 3 2 1 Deferred tax assets 129 61 68 Total deferred tax assets and liabilities 132 63 69 Total taxes (2,438) (2,390) (48) Current taxes increased compared to the first half of 2025 (by a total of 117 thousand Euro).

Deferred taxes, overall positive and equal to 132 thousand Euro, arose mainly from the allocation of deferred tax assets recorded on the impairment of inventories in the Parent Company Gefran S.p.A.

It should also be noted that, in application of the amendment to IAS 12 “Income Taxes ” published by the IASB on 7 May 2021 and which came into effect on 1 January 2023, deferred tax assets were recognised in the first half of 2026 for a value of 1 thousand Euro (at 30 June 2025 deferred tax assets amounted to 13 thousand Euro). For the presentation in the statement of financial position, deferred tax assets and liabilities have been offset, as required by IAS 12.

The following table analyses the changes in deferred tax assets and deferred tax liabilities during the first half of 2026 and in the same period of the previous year:

104 Half-yearly financial report as at 30 June 2026

(Euro /000) 31 December 2025 Posted to the

income

statement Recognised in

shareholders ’

equity Exchange

rate

differences 30 June

2026

Deferred tax assets Impairment of inventories 384 144 - 3 531 Impairment of trade receivables 170 (16) - - 154 Impairment of assets 540 1 - - 541 Deductible losses to be brought forward 262 8 - - 270 Elimination of unrealised margins on inventories 374 51 - - 425 Provision for product warranty risk 167 17 - - 184 Provision for sundry risks 224 (77) - - 147 Fair value hedging 41 - (26) - 15 Other deferred tax assets 40 1 - - 41 Total deferred tax assets 2,202 129 (26) 3 2,308

Deferred tax liabilities Discounting post -employment benefits reserve (27) (7) - - (34) Other deferred tax liabilities (958) 10 - (29) (977) Total deferred tax liabilities (985) 3 - (29) (1,011)

Total 1,217 132 (26) (26) 1,297

Gefran Group 105 (Euro /000) 31 December 2024 Posted to the

income

statement Recognised in

shareholders ’

equity Exchange

rate

differences 30 June

2025

Deferred tax assets Impairment of inventories 610 91 - (4) 697 Impairment of trade receivables 185 (1) - (1) 183 Impairment of assets 540 (2) - - 538 Deductible losses to be brought forward 360 11 - (10) 361 Exchange rate fluctuations 6 (6) - - -

Elimination of unrealised margins on inventories 376 (38) - - 338 Provision for product warranty risk 202 (4) - - 198 Provision for sundry risks 30 (3) - (2) 31 Fair value hedging 66 - 4 - 70 Other deferred tax assets 21 13 - - 34 Total deferred tax assets 2,396 61 4 (17) 2,450

Deferred tax liabilities Discounting post -employment benefits reserve (14) - - - (14) Fair value measurement (1) 1 - - -

Other deferred tax liabilities (918) 1 - 102 (815) Total deferred tax liabilities (933) 2 - 102 (829)

Total 1,463 63 4 85 1,621

29. Guarantees granted, commitments and other contingent liabilities

a) Guarantees granted At 30 June 2026, the Group had granted guarantees for payables or commitments totalling 1,454 thousand Euro. These are summarised in the table below:

(Euro /000) 30 June 2026 31 December 2025

Sandrini Costruzioni 66 66 Sandrini Costruzioni 29 29 WEG Equipamentos Elétricos S.A. 1,150 1,150 SMS Group 67 67 SMS Group 67 67 SMS Group 25 25 SMS Group 50 50 Total 1,454 1,454

106 Half-yearly financial report as at 30 June 2026 The two sureties issued in favour of Sandrini Costruzioni guarantee the rent of the industrial property used by Elettropiemme S.r.l. under 2 leases: the first will expire on 31 January 2027 while the other will expire on 31 December 2029.

On 30 September 2022, with regard to the sale of the motion control business to the Brazilian group WEG, Gefran S.p.A. issued a bank guarantee to WEG Equipamentos Eléctricos S.A., expiring on 30 September 2026. This guarantee, originally signed for 2,300 t housand Euro, now amounts to 1,150 thousand Euro.

There are also bank guarantees covering the quality of the products supplied to SMS Group, a customer served by Elettropiemme S.r.l., totalling 209 thousand Euro, issued during 2025 with different maturities (67 thousand Euro on 13 July 2026, 67 thousand E uro on 13 January 2029, 25 thousand Euro on 31 July 2027 and 50 thousand Euro on 31 March 2028).

b) Legal proceedings and disputes The Parent Company and its subsidiaries may be involved in various legal proceedings and disputes.

It should be noted that there are currently no disputes in progress; therefore, no significant related liabilities are expected to be recognised.

c) Commitments

The Group has entered into contracts for the rental of buildings and the lease of equipment, electronic machinery and company vehicles. Pursuant to IFRS 16, the initial lease liability is capitalised as a RoU asset with a matching entry to Financial payabl es due to leasing under IFRS 16; see the relevant Specific explanatory notes to the accounts for more information.

As envisaged in this standard, certain contracts are excluded from the application of IFRS 16 as they satisfy the requirements for exclusion; lease instalments for those contracts totalling 423 thousand Euro were charged to the income statement in the firs t half of 2026 (365 thousand Euro in the first six months of 2025).

At 30 June 2026, the total value of the Group ’s commitments was 995 thousand Euro, for leasing and rental contracts expiring within the next five years, which do not fall within the scope of application of IFRS 16 (equal to 961 thousand Euro at 30 June 2025). This amount mainly refers to ancillary ser vices pertaining to contracts subject to IFRS 16, as well as to contracts for which, based on their value and duration, the above standard has not been applied.

30. Dealings with related parties In accordance with Consob resolution no. 17221 of 12 March 2010, the Gefran S.p.A. Board of Directors adopted the Regulation on related -party transactions, the current version of which was updated by the Board of Directors of Gefran S.p.A. on 12 February 2 026 and can be viewed on the Company ’s website in the section Investor/Governance/Shareholders ’ meetings (at https://www.gefran.com/governance/documents -and-procedures/).

Gefran Group 107 Transactions with related parties are part of normal operations and the typical business of each entity involved and are carried out under normal market conditions. There have not been any atypical or unusual transactions.

Noting that the economic and equity effects of consolidated intragroup transactions are eliminated in the consolidation process, the most significant1 dealings with related parties are listed below.

These transactions have no material impact on the Group ’s economic and financial structure. They are summarised in the following tables:

(Euro /000) Marfran S.r.l. Total

Revenues from product sales 2025 - -

2026 60 60

(Euro /000) Imet S.p.A. Total

Costs of raw materials and accessories 2025 (373) (373) 2026 (351) (351)

(Euro /000) Climat S.r.l. B. T. Schlaepfer Total

Service costs

2025 (106) (54) (160) 2026 (109) (54) (163)

(Euro /000) Climat S.r.l. Marfran S.r.l. Imet S.p.A. Total

Property, plant,

machinery and tools 2025 345 - - 345 2026 983 - - 983

Trade receivables

2025 - 135 - 135 2026 - 3 - 3

Trade payables

2025 335 - 223 558 2026 620 - 245 865

It should also be noted that employment relationships with related parties are active within Group companies, for a total amount of 56 thousand Euro at 30 December 2026 (53 thousand Euro at 30 June 2025).

1 As per internal regulations, the threshold of 50 thousand Euro identifies the most significant dealings; dealings of lower amounts are therefore not reported.

108 Half-yearly financial report as at 30 June 2026 In its dealings with its subsidiaries, the Parent Company Gefran S.p.A. provided technical and administrative/management services and paid royalties on behalf of the Group ’s operative subsidiaries totalling 1.9 million Euro under specific contracts (in line with the value at 30 June 2025).

Gefran S.p.A. provides a Group cash pooling service, partly through a “Zero Balance ” service, which involves all the European subsidiaries and the Singapore subsidiary.

None of the subsidiaries holds shares of the Parent Company or held them during the period.

In the first half of 2026, the Parent Company Gefran S.p.A. recognised dividends from subsidiaries amounting to 3.9 thousand Euro (3.8 million Euro in the first half of 2025).

Persons of strategic importance have been identified as members of the executive Board of Directors of Gefran S.p.A. and of other Group companies, as well as executives with strategic responsibility, identified in the following Group figures: Chief Financi al Officer, Chief People & Organization Officer, Chief Sales Officer, Chief Technology Officer, Sensors Unit Director and Chief Operation Officer.

31. Summary of public funds pursuant to Article 1, paragraphs 125 -129, Law no. 124/2017 In compliance with the transparency and publicity requirements provided for under Law no. 124 of 4 August 2017, Article 1, paragraphs 125 -129, which made it compulsory for companies to disclose “subsidies, contributions, and other economic advantages of any kind ” in the notes to the financial statements, the details of the relevant amounts are given below, in addition to what has already been published in the Italian national register of state aid – transparency of individual aid.

(Euro /000) Providing body Values at 30 June 2026

Industry 5.0 Tax credit Italian government 171 Industry 4.0 Tax credit Italian government -

Total 171

Provaglio d ’Iseo, 6 August 2026 For the Board of Directors

Chairwoman

Maria Chiara Franceschetti Chief Executive Officer

Marcello Perini

Gefran Group 109

Attachments

a) Consolidated income statement by quarter

(Euro /000) Q1 Q2 Q3 Q4 TOT Q1 Q2 TOT

2025 2025 2025 2025 2025 2026 2026 2026

a Revenues 36,442 35,713 32,975 33,834 138,964 36,332 37,483 73,815 b Increases for internal work 397 520 540 768 2,225 620 690 1,310 c Consumption of

materials and

products 10,152 11,215 9,509 10,839 41,715 10,189 11,396 21,585 d Added Value (a+b -c) 26,687 25,018 24,006 23,763 99,474 26,763 26,777 53,540 e Other operating costs 6,155 5,790 5,773 6,153 23,871 6,282 6,530 12,812 f Personnel costs 12,696 13,300 13,140 14,024 53,160 13,416 14,130 27,546 g EBITDA (d -e-f) 7,836 5,928 5,093 3,586 22,443 7,065 6,117 13,182

h Depreciation,

amortisation and

impairment 1,969 2,015 2,058 2,068 8,110 2,094 2,095 4,189 i EBIT (g -h) 5,867 3,913 3,035 1,518 14,333 4,971 4,022 8,993

l Gains/(Losses)

from financial

assets and

liabilities (248) (505) (115) 143 (725) 182 (8) 174

m Gains/(Losses)

from

shareholdings

valued at equity 4 (9) (1) 18 12 5 10 15 n Profit (loss)

before tax

(i±l±m) 5,623 3,399 2,919 1,679 13,620 5,158 4,024 9,182 o Taxes (1,538) (852) (751) (610) (3,751) (1,451) (987) (2,438) p Net profit (loss) (n±o) 4,085 2,547 2,168 1,069 9,869 3,707 3,037 6,744

Attributable to:

Group 4,085 2,533 2,152 1,099 9,869 3,707 3,037 6,744 Third parties - 14 16 (30) - - - -

110 Half-yearly financial report as at 30 June 2026 b) Exchange rates used to translate the financial statements of foreign companies

End-of-period exchange rates

Currency 30 June 2026 31 December 2025 Swiss Franc 0.9224 0.9314 Pound Sterling 0.8618 0.8726 U.S. Dollar 1.1394 1.1750 Brazilian Real 5.9003 6.4364 Chinese Renminbi 7.7314 8.2262 Indian Rupee 107.8565 105.5965

Average exchange rates in the period

Currency 30 June 2026 30 June 2025 2Q 2026 2Q 2025 Swiss Franc 0.9179 0.9414 0.9190 0.9369 Pound Sterling 0.8673 0.8423 0.8662 0.8490 U.S. Dollar 1.1670 1.0930 1.1633 1.1336 Brazilian Real 6.0118 6.2909 5.8670 6.4208 Chinese Renminbi 8.0099 7.9260 7.9134 8.1966 Indian Rupee 108.6187 94.0947 110.1216 97.0311

c) List of subsidiaries included in the scope of consolidation

Name Registered office Nation Currency Share capital Parent company % of

direct

ownership

Gefran UK Ltd. Warrington United Kingdom GBP 4,096,000 Gefran S.p.A. 100.00

Gefran Deutschland

GmbH Seligenstadt Germany EUR 365,000 Gefran S.p.A. 100.00 Gefran France S.A. Saint -Priest France EUR 800,000 Gefran S.p.A. 99.99 Gefran Benelux N.V. Geel Belgium EUR 344,000 Gefran S.p.A. 100.00 Gefran Inc. North Andover United States USD 1,900,070 Gefran S.p.A. 100.00

Gefran Brasil

Eletroeletrônica Ltda. San Paolo Brazil BRL 450,000 Gefran S.p.A. 99.90 Gefran Schweiz AG 0.10 Gefran India Private Ltd. Pune India INR 100,000,000 Gefran S.p.A. 95.00 Gefran Schweiz AG 5.00 Gefran Asia Pte. Ltd. Singapore Singapore EUR 3,359,369 Gefran S.p.A. 100.00

Gefran Automation

Technology (Shanghai)

Co. Ltd. Shanghai China (PRC) RMB 28,940,000 Gefran Asia Pte. Ltd. 100.00 Gefran Schweiz AG Aadorf Switzerland CHF 100,000 Gefran S.p.A. 100.00 Gefran Soluzioni S.r.l. Provaglio d ’Iseo Italy EUR 100,000 Gefran S.p.A. 100.00 Elettropiemme S.r.l. Trento Italy EUR 70,000 Gefran Soluzioni S.r.l. 100.00 CZ Elettronica S.r.l. Monticello Conte Otto Italy EUR 10,400 Gefran S.p.A. 100.00

Gefran Group 111 d) List of companies consolidated at equity

Name Registered

office Nation Currency Share capital Parent company % of

direct

ownership

Axel S.r.l. Crosio della Valle Italy EUR 26,008 Gefran S.p.A. 15.00 Robot At Work S.r.l. Rovato Italy EUR 14,500 Gefran S.p.A. 24.83 40Factory S.r.l. Piacenza Italy EUR 18,804 Gefran S.p.A. 22.00

e) List of other affiliates

Name Registered

office Nation Currency Share capital Parent company % of

direct

ownership

Colombera S.p.A. Iseo Italy EUR 8,788,230 Gefran S.p.A. 17.08 Woojin Plaimm Co Ltd Seoul South Korea WON 3,200,000,000 Gefran S.p.A. 0.75

CSMT GESTIONE

S.C.A.R.L. Brescia Italy EUR 1,400,000 Gefran S.p.A. 3.97

112 Half-yearly financial report as at 30 June 2026 Certification of consolidated financial statements pursuant to Article 81 -ter of Consob regulation no. 11971 dated 14 May 1999, as amended

The undersigned Marcello Perini , in his capacity as Chief Executive Officer, and Paolo Beccaria , as the Executive in charge of financial reporting of Gefran S.p.A., hereby certify, with due regard for the provisions of Article 154 -bis, paragraphs 3 and 4, of Decree 58 dated 24 February 1998:

- the adequacy, with respect to the Company ’s characteristics, and

- the effective application of the administrative and accounting procedures for the preparation of the consolidated financial statements in the first half of 2026.

There are no significant matters to report in this regard.

It is further certified that:

the condensed half-yearly consolidated financial statements :

- were prepared in accordance with the applicable international accounting standards endorsed by the European Union pursuant to Regulation (EC) no. 1606/2002 of the European Parliament and of the Council of 19 July 2002;

- correspond to the entries made in accounting ledgers and records;

- provide a true and accurate representation of the economic and financial situation of the issuer and all companies included in the scope of consolidation.

the Report on Operations contains a reliable analysis of operating performance, results and condition of the issuer and all companies included in the scope of consolidation, together with a description of the main risks and uncertainties to which they are exposed.

Provaglio d ’Iseo, 6 August 2026

Chief Executive Officer Executive in charge of financial reporting

Marcello Perini

Paolo Beccaria

Gefran Group 113

External auditors ’ report on the condensed half -yearly

consolidated financial

statements

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REPORT ON REVIEW OF THE HALF -YEARLY CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

To the Shareholders of Gefran S.p.A.

Introduction

We have reviewed the accompanying half -yearly condensed consolidated financial statements of Gefran S.p.A. and subsidiaries (the “Gefran Group”), which comprise the statement of financial position as of June 30, 2026 and the profit/(loss) statement, statem ent of comprehensive income, statement of changes in equity and cash flow statement for the six month period then ended, and the related explanatory notes. The Directors are responsible for the preparation of the half -yearly condensed consolidated financial statements in accordance with the International Accounting Standard applicable to the interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union. Our responsibility is to express a conclusion on the half -yearly condensed consolidated financial statements based on our review.

Scope of Review

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

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Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying half -yearly condensed consolidated financial statements of the Gefran Group as at June 30, 2026 are not prepared, in all material respects, in accordance with the International Accounting Standard applicable to the interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union.

DELOITTE & TOUCHE S.p.A.

Signed by

Andrea Restelli

Partner

Milan, Italy

August 7, 2026

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

Accordingly, only the original text in Italian language is authoritative.

116 Half-yearly financial report as at 30 June 202 6