Half-yearly report at 30 June 2026

HALF -YEARLY REPORT

AT 30 JUNE 2026

Sabaf Group | 2026 Half -Yearly Report 2

TABLE OF CONTENTS

Group structure and corporate bodies 3

Interim Report on Operations 4

Annexes to the Interim Report on Operations 13 Condensed Consolidated Interim Financial Statements 20 Consolidated statement of financial position 21 Consolidated income statement 22 Consolidated statement of comprehensive income 23 Consolidated statement of cash flows 24 Statement of changes in consolidated shareholders'

equity 25

Notes to the condensed consolidated interim financial statements 26

Certification of the Condensed Consolidated Interim Financial Statements pursuant to Article 154 -bis of Legislative Decree no. 58/98 54 Independent auditors' report

GROUP STRUCTURE AND CORPORATE BODIES

Sabaf Group | 2026 Half -Yearly Report 3 Group structure

Parent company

SABAF S.p.A.

Registered and administrative office: Via dei Carpini 1 - 25035 Ospitaletto (Brescia) REA.: Brescia 347512 Tax Code: 03244470179 Share capital at 30 June 2026: €12,686,795 fully paid in Web site: www.sabafgroup.com Subsidiaries and equity interest attributable to the Group Companies consolidated on a line -by-line basis Faringosi Hinges S.r.l. Italy 100% Sabaf do Brasil Ltda. (Sabaf Brazil) Brazil 100% Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf Turkey) Turkey 100% Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China) China 100% A.R.C. S.r.l. Italy 100% Sabaf India Private Limited (Sabaf India) India 100% Sabaf Mexico Appliance Components S.A. de c.v. (Sabaf Mexico) Mexico 100% C.M.I. S.r.l. Italy 100% C.G.D. S.r.l. Italy 100% P.G.A S.r.l. Italy 100% Sabaf America Inc. (Sabaf America) U.S.A. 100% Mansfield Engineered Components LLC (MEC) U.S.A. 51%

Corporate bodies

Board of Directors Chairman Claudio Bulgarelli Chief Executive Officer Gianluca Beschi Director Alessandro Potestà Director Christian Richard Prinoth Director Cinzia Saleri Director (*) Laura Ciambellotti Director (*) Francesca Michela Maurelli Director (*) Federica Menichetti Director (*) Daniela Toscani (*) independent directors

Board of Statutory Auditors Chairwoman Alessandra Tronconi Statutory Auditor Maria Alessandra Zunino de Pignier Statutory Auditor Mauro Giorgio Vivenzi

Independent auditors EY S.p.A.

Sabaf Group | 2026 Half -Yearly Report 4

INTERIM REPORT ON OPERATIONS

Sabaf Group | 2026 Half -Yearly Report 5 INTERIM REPORT ON OPERATIONS

Introduction

This Half -Yearly Financial Report for the six months ended 30 June 2026 has been prepared pursuant to Article 154 -ter of Legislative Decree no. 58/1998 and in accordance with the applicable international financial reporting standards endorsed by the EU, specifically, IAS 34 Interim Financial Reporting . The half -year figures at 30 June 2026 and 30 June 2025 and for the six -month period then ended were reviewed by EY S.p.A., the financial figures at 31 December 2025, shown for comparative purposes, were audited by EY S.p.A.

The business

The Sabaf Group is active in the production of components for household appliances and is one of the world’s leading manufacturers of components for gas cooking appliances. Its reference market therefore consists of manufacturers of household appliances.

Sabaf’s product range focuses on the following main lines:

• Gas components, made up of:

- Valves and thermostats, with or without thermoelectric safety devices: the components that regulate the flow of gas to the burner;

- Burners: these are the components that, via the mixing of gas with air and combustion of the gas used, produce one or more rings of flame;

- Accessories: other components that complete the range, aimed particularly at making it possible to light and control the flame.

• Hinges: these components enable the smooth and balanced movement of appliance doors when they are opened or closed.

• Electronic components for domestic appliances, including control boards, timers, display units and power supplies for ovens, refrigerators, freezers and cooker hoods.

The range also encompasses electromagnetic induction cooking components, featuring comple te kits with all parts required for hob operation.

The Sabaf Group currently has fifteen production plants: Ospitaletto (Brescia), Bareggio (Milan), Campodarsego (Padua), Crespellano (Bologna - two plants), Fabriano (Ancona), Jundiaì (Brazil), Manisa (Turkey – two plants), Istanbul (Turkey), Kunshan (China ), Myszkow (Poland), Hosur (India), San Luis Potosì (Mexico) and Mansfield (US).

Sabaf Group | 2026 Half -Yearly Report 6 Economic performance

The economic results for the first half of 2026 and the second quarter of 2026 are presented and commented on below on a normalised basis, i.e. adjusted for the effects of the application of IAS 29 - the hyperinflation accounting standard - with reference to the financial statements of the subsidiary Sabaf Turkey. This representation allows a better understanding of the Group's performance and a more accurate comparison with previous periods.

First half of 2026

Half -year results Data in thousands of € H1 2026 H1 2025 2026 -2025 change % change 12

MONTHS

2025

Sales revenue 144,666 143,000 1,666 +1.2% 278,201 Hyperinflation – Turkey (1,050) 2,738 1,035 Normalised revenue 143,616 145,738 (2,122) -1.5% 279,236

EBITDA 20,851 20,237 614 +3.0% 40,780

EBITDA % 14.4 14.2 14.7

Hyperinflation – Turkey (641) 1,090 570 Normalised EBITDA 20,210 21,327 (1,117) -5.2% 41,350 Normalised EBITDA % 14.1 14.6 14.8

EBIT 7,955 7,832 123 +1.6% 16,163

EBIT % 5.5 5.5 5.8

Hyperinflation – Turkey 2,060 3,233 4,986 Normalised EBIT 10,015 11,065 (1,050) -9.5% 21,149 Normalised EBIT % 7.0 7.6 7.6

Profit/(loss) for the period (937) 5,239 (6,176) -117.9% 5,180 Profit/(loss) % -0.6 3.7 1.9 Hyperinflation – Turkey 4,417 1,459 7,696 Normalised result of the Group 3,480 6,698 (3,218) -48.0% 12,876 Normalised result % 2.4 4.6 4.6

In the first half of 2026, the Sabaf Group achieved normalised sales revenue of €143.6 million, down 1.5% compared to €145.7 million in the first half of 2025 (up 0.4% at constant exchange rates).

Sales in Europe and South America performed well compared with the first half of 2025, growing by 5.6% and 6.8%, respectively. Sales in Asia and Oceania also rose (+7.7%);

although the volumes involved were modest, this reflects the benefits of the Group’s operations in the Indian market, which offers significant potential for growth and where the Group has a production plant of its own. By contrast, sales fell in Turkey ( -10.4%), affected by the difficulties faced by some local customers and the weakness o f the domestic market, and in the Africa and Middle East region ( -18.2%), which is more exposed to geopolitical tensions. In North America, revenue fell by 4.3% at current exchange rates, whilst it showed moderate growth at constant exchange rates (+1.7%) thanks to higher production volumes at the Mexican plant.

Sabaf Group | 2026 Half -Yearly Report 7 With respect to product division, revenue from gas components was essentially stable compared with the first half of 2025 (+0.1%). Hinges recorded a slight fall in sales at current exchange rates ( -1.9%), but showed moderate growth at constant exchange rat es (+1.3%). The decline in the electronic components segment was more pronounced ( -

10.4%). Against this backdrop, the Group continues to pursue its product diversification strategy, gradually phasing out less competitive items while developing new solution s for both the household appliance sector and other areas of application.

Normalised EBITDA for the first half of 2026 amounted to €20.2 million (14.1% of sales), down 5.2% compared with €21.3 million (14.6%) in the first half of 2025 due to the adverse impact of exchange rates (in particular the weakening of the US dollar). The decline was partly offset by improved operational efficiency. Against a backdrop of broadly stable selling prices, the impact of rising raw material and energy costs was mitigated by the hedging measures put in place.

Normalised EBIT was €10 million (7%), down 9.5% compared to €11.1 million (7.6%) in the first half of 2025.

Given the positive performance of MEC - the US company in which the Group acquired a 51% stake in 2023 - the value of the put option granted to the minority shareholders for a 49% stake was adjusted at 30 June 2026. The related price is pegged to MEC's res ults for the two years preceding the exercise of the option. The related financial liability (now €19.1 million) increased by €4 .1 million, with financial expenses of €3.6 million and foreign exchange losses of €0.5 million being recognised in the income s tatement.

Normalised net profit for the period was €3.5 million (€6.7 million in the first half of 2025).

Sabaf Group | 2026 Half -Yearly Report 8 Second quarter of 2026

Quarterly results

Data in thousands of € Q2

2026 (*) Q1

2026 % change Q2

2026 (*) Q2

2025 (*) % change

Sales revenue 74,280 70,386 +5.5% 74,280 69,353 +7.1% Hyperinflation – Turkey (647) (403) (647) 1,790 Normalised revenue 73,633 69,983 +5.2% 73,633 71,143 +3.5%

EBITDA 11,129 9,722 +14.5% 11,129 9,987 +11.4%

EBITDA % 15.0 13.8 15.0 14.4

Hyperinflation – Turkey (436) (205) (436) 918 Normalised EBITDA 10,693 9,517 +12.4% 10,693 10,905 -1.9% Normalised EBITDA % 14.5 13.6 14.5 15.3

EBIT 4,642 3,313 +40.1% 4,642 3,970 +16.9%

EBIT % 6.2 4.7 6.2 5.7

Hyperinflation – Turkey 903 1,157 903 1,850 Normalised EBIT 5,545 4,470 +24.0% 5,545 5,820 -4.7% Normalised EBIT % 7.5 6.4 7.5 8.2

Group profit/(loss) (2,003) 1,066 -287.9% (2,003) 1,449 -238.2% Profit/(loss) % -2.7 1.5 -2.7 2.1 Hyperinflation – Turkey 2,876 1,541 2,876 1,739 Normalised result of the Group 873 2,607 -66.5% 873 3,188 -72.6% Normalised result % 1.2 3.7 1.2 4.5 (*) unaudited figures In the second quarter of 2026, the Group recorded a positive trend, characterised by a gradual improvement in performance and the favourable development of key operating indicators.

Normalised sales stood at €73.6 million, up by 5.2% compared to €70 million in the first quarter of 2026 and by 3.5% compared to €71.1 million in the second quarter of 2025 (up 4.4% at constant exchange rates).

Europe, North and South America and Asia all recorded an increase in sales, driven by the strategic measures taken by management to consolidate the business and develop further commercial opportunities. The Africa and Middle East region also showed signs o f recovery during the second quarter, thus partially offsetting the decline in sales recorded in the first quarter of the year due to geopolitical instability.

Normalised EBITDA for the second quarter was €10.7 million (14.5% of turnover), up by 12.4% compared to the figure of €9.5 million (13.6%) in the first quarter of 2026, having benefited from increased operations in the period. Compared with the second quar ter of 2025 (€10.9 million, 15.3%), there was a 1.9% decrease due to unfavourable exchange rate fluctuations.

Normalised EBIT was €5.5 million (7.5%), up 24% compared to €4.5 million in the first quarter of 2026 (6.4%) and down 4.7% compared to €5.8 million in the second quarter of 2025 (8.2%).

Normalised net profit for the period was €0.9 million (€2.6 million in the first quarter of 2026 and €3.2 million in the second quarter of 2025).

Sabaf Group | 2026 Half -Yearly Report 9 Financial position, cash flows and financial debt at 30 June 2026

Data in thousands of € 30/06/2026 31/12/202

5 30/06/202

5

Non -current assets 168,350 163,809 168,764 Current assets1 164,509 142,631 150,001 Current liabilities2 (80,670) (62,849) (74,658) Net working capital3 83,839 79,782 75,343 Provisions for risks and charges, post -employment benefits, deferred taxes, other non -current payables (11,338) (8,593) (8,558) Net invested capital 240,851 234,998 235,549

Short -term net financial position (4,644) (1,498) (3,958) Medium/long -term net financial position (80,512) (73,712) (75,459) Net financial debt (85,156) (75,210) (79,417)

Shareholders’ equity 155,695 159,788 156,132

Cash flows for the financial year are summarised in the table below:

Data in thousands of € 30/06/2026 31/12/2025 30/06/202 5

Opening liquidity 34,536 30,641 30,641

Operating cash flow 15,425 35,088 19,687 Cash flow from investments (9,152) (17,955) (12,130) Free cash flow 6,273 17,133 7,557

Cash flow from financing activities 9,810 781 6,751 Payment of dividends (8,004) (7,949) (7,534) Treasury share transactions (1,179) (1,879) (1,262) Foreign exchange differences (1,352) (4,191) (2,483) Cash flow for the period 5,548 3,895 3,029

Closing liquidity 40,084 34,536 33,670

In the first half of 2026, operations generated cash flows of €6.3 million. At 30 June 2026, the impact of the net working capital3 on revenue was 29% compared to 26.3% at 30 June 2025 and 28.7% at the end of 2025.

Net investments for the period came to €9.2 million (€12.1 million in the first half of 2025 and €18 million for 2025). For 2026, the Group plans to invest approximately €16 million.

At 30 June 2026, net financial debt was €85.2 million (€75.2 million at 31 December 2025 and €79.4 million at 30 June 2025), against consolidated equity of €155.7 million. The net financial debt at 30 June 2026 includes the financial liability of €19.1 mil lion related to the recognition of the put option granted to the non -controlling investors of MEC and the lease liabilities of €6 million recognised in accordance with IFRS 16 (€5.8 million related to operating leases and €0.2 million related to finance le ases).

1 Sum of Inventories, Trade receivables, Tax receivables and Other current receivables 2 Sum of Trade payables, Tax payables and Other liabilities 3 Difference between current assets and current liabilities

Sabaf Group | 2026 Half -Yearly Report 10 Intra -group and related party transactions

Intragroup transactions are part of the normal course of business for the group companies and are conducted on an arm’s length basis.

During the period, no related party transactions were carried out other than said intra -

group transactions.

Risk factors related to the segment in which the Group operates and main risks and uncertainties for the remainder of 2026

Risks related to international geopolitical situation The ongoing complexity of the geopolitical landscape is causing high economic uncertainty and fuelling significant market volatility. This situation is affecting market confidence, with the risk of a prolonged period of weak macroeconomic conditions. In particular, escalating conflicts and tensions in the Middle East could fuel instability and give rise to further geopolitical complexities.

While the Group and its primary customers have limited exposure to the affected areas, management constantly monitors potential operational impacts, particularly regarding energy and supply chain costs. These efforts also factor in the Group’s proven track record of passing on material cost increases to selling prices.

Tariff barriers

The Group's manufacturing footprint, with plants located in all major markets, including the US, significantly mitigates the potential impacts from the introduction of trade tariffs or export restrictions by national or supranational bodies. Any tariff or customs barriers could affect international economic growth.

Climate change and energy transition The Sabaf Group follows a business development path that aims to reduce the environmental impact of its own operations and that of its value chain, and gives due consideration to the risks and opportunities related to climate change. The double materiality assessment identified three transition risks, while no material physical risks emerged.

The first risk relates to the need to adapt to market expectations regarding sustainability, e.g. through the implementation of effective decarbonisation strategies. It is becoming increasingly common for appliance manufacturers to involve their suppliers on environmental matters, specifically climate change. Companies that develop concrete plans to reduce their environmental impact can improve their competitiveness, consolidate their position in their target markets and, more generally, strengthen stakehol der relations.

The second risk is the management of CO 2 emissions along the entire production chain, an increasingly important factor in meeting market demands. Emissions management facilitates the monitoring of environmental performance and enables comprehensive communication, in line with customer and invest or expectations.

The third risk concerns the adaptation of companies to changing environmental regulations, such as Carbon Free, RoHS and CBAM regulations. The evolving regulatory

Sabaf Group | 2026 Half -Yearly Report 11 framework requires constant updating and rapid adaptation, both to ensure compliance, and to seize opportunities for operational efficiency and consolidate market presence.

In order to address stakeholder requirements and new climate and sustainability reporting regulations, in 2023 the Group launched a carbon management and climate change mitigation pathway that includes the identification of specific drivers of decarbonisation. In particular, the Sabaf Gr oup has developed a transition plan for climate change mitigation - approved by the Board of Directors of Sabaf S.p.A. on 18 December 2025 - aimed at supporting the gradual reduction of Scope 1 and Scope 2 greenhouse gas emissions and consistent with the integration of climate objectives into the Group’s strategy.

For additional information, reference should be made to the Consolidated Sustainability Statement included in the 2025 Report on Operations, with respect to which no significant changes occurred.

The Sabaf Group is also exposed to various risk factors, attributable to the macro -

categories described below:

Risks of external context Risks deriving from the external context in which Sabaf operates, which could have a negative impact on the economic and financial sustainability of the business in the medium/long -term. The most significant risks in this category are related to general economic conditions, trend in demand and product competition.

Strategic risks

Strategic risks that could negatively impact Sabaf's medium -term performance, including, for example, risks related to low profitability of certain product lines and the risks arising from the mismatch between market needs and product innovation.

Operational risks

Risks of suffering losses due to inadequate or malfunctioning processes, human resources and information systems. This category includes financial risks (e.g. losses deriving from the volatility of the price of raw materials and from fluctuations in exchan ge rates), risks related to production processes (e.g. product liability, saturation level of production capacity), organisational risks (e.g. loss of key staff and expertise and/or the difficulty of replacing them) and Information Technology risks.

ESG risks

Risks associated with environmental, social and governance (ESG) issues, including climate change and energy transition.

Legal and compliance risks Risks related to Sabaf's contractual liabilities and compliance with the regulations applicable to the Group, including: Legislative Decree 231/2001, Law 262/2005, HSE regulations, regulations applicable to listed companies, tax regulations, labour regulat ions, international trade regulations and intellectual property regulations.

Sabaf Group | 2026 Half -Yearly Report 12 The Report on Operations at 31 December 2025 and the 2025 Consolidated Sustainability Statement, to which reference should be made, describe in detail these risks and the related risk management actions currently in progress.

Significant events after the end of the half -year

No significant events occurred after 30 June 2026.

Outlook for the current year

The current order backlog points to moderate sales growth for the current year, supported by the steady progress of organic growth initiatives in the second half of the year.

In order to maintain operational profitability in the face of the expected higher costs of key raw materials and energy, the Group has adjusted its price lists and has also launched further initiatives aimed at improving operational efficiency.

For the Board of Directors

The Chairman

Claudio Bulgarelli

Ospitaletto, 08 September 2026

Sabaf Group | 2026 Half -Yearly Report 13 Annexes to the Interim Report on Operations

Normalised revenue by geographical area (€/000)

Normalised half -year revenue H1 2026 % H1 2025 % % change 2025 FY % Europe (excluding Turkey) 44,810 31.3% 42,446 29.1% +5.6% 81,384 29.1% Turkey 32,450 22.6% 36,229 24.9% -10.4% 66,615 23.9% North America 31,766 22.1% 33,187 22.8% -4.3% 64,876 23.2% South America 19,600 13.6% 18,350 12.6% +6.8% 37,998 13.6% Africa and Middle East 5,466 3.8% 6,686 4.6% -18.2% 11,469 4.1% Asia and Oceania 9,524 6.6% 8,840 6.1% +7.7% 16,894 6.1% Total 143,616 100% 145,738 100% -1.5% 279,236 100%

Normalised quarterly

revenue Q2

2026* % Q2

2025* % % change 2025 FY % Europe (excluding Turkey) 21,958 29.8% 21,296 29.9% +3.1% 81,384 29.1% Turkey 16,400 22.3% 17,001 23.9% -3.5% 66,615 23.9% North America 16,498 22.4% 16,657 23.4% -1.0% 64,876 23.2% South America 10,001 13.6% 8,988 12.6% +11.3% 37,998 13.6% Africa and Middle East 3,397 4.6% 2,608 3.7% +30.3% 11,469 4.1% Asia and Oceania 5,379 7.3% 4,593 6.5% +17.1% 16,894 6.1% Total 73,633 100% 71,143 100% +3.5% 279,236 100%

Normalised turnover by product line

Normalised half -year revenue H1 2026 % H1 2025 % % change 2025 FY % Gas parts 86,353 60.1% 86,300 59.2% +0.1% 165,695 59.3% Hinges 46,061 32.1% 46,930 32.2% -1.9% 90,164 32.3% Electronic components 11,202 7.8% 12,508 8.6% -10.4% 23,377 8.4% Total 143,616 100% 145,738 100% -1.5% 279,236 100%

Normalised quarterly

revenue Q2

2026* % Q2

2025* % % change 2025 FY % Gas parts 45,155 61.3% 41,956 59.0% +7.6% 165,695 59.3% Hinges 23,050 31.3% 22,807 32.1% +1.1% 90,164 32.3% Electronic components 5,428 7.4% 6,380 9.0% -14.9% 23,377 8.4% Total 73,633 100% 71,143 100% +3.5% 279,236 100%

(*) unaudited figures

Sabaf Group | 2026 Half -Yearly Report 14 Reconciliation of the consolidated income statement at 30 June 2026

(€/000) H1

2026 IAS29 effect H1 2026

Normalised

INCOME STATEMENT COMPONENTS

OPERATING REVENUE AND INCOME

Revenue 144,666 (1,050) 143,616 Other income 6,091 (32) 6,059 Total operating revenue and income 150,757 (1,082) 149,675 -

OPERATING COSTS -

Materials (75,624) 261 (75,363) Change in inventories 8,604 (125) 8,479 Services (25,955) 86 (25,869) Personnel costs (37,358) 218 (37,140) Other operating costs (922) 1 (921) Costs for capitalised in -house work 1,349 - 1,349 Total operating costs (129,906) 441 (129,465) -

OPERATING PROFIT BEFORE DEPRECIATION AND

AMORTISATION, CAPITAL GAINS/LOSSES, AND

IMPA IRMENT LOSSES/REVERSALS OF

IMPAIRMENT LOSSES OF NON -CURRENT ASSETS 20,851 (641) 20,210

Amortisation/depreciation (12,891) 2,701 (10,190) Capital gains on disposals of non -current assets (5) - (5) Impairment losses on non -current assets - - -

EBIT 7,955 2,060 10,015

Financial income 536 (6) 530 Financial expenses (5,467) 3 (5,464) Net income/(charges) from hyperinflation 340 (340) -

Exchange rate gains and losses 1,554 (41) 1,513

PROFIT BEFORE TAXES 4,918 1,676 6,594

Income taxes (4,946) 2,741 (2,205)

PROFIT/(LOSS) FOR THE PERIOD (28) 4,417 4,389

of which:

Minority interests 909 - 909

PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP (937) 4,417 3,480

Sabaf Group | 2026 Half -Yearly Report 15 Reconciliation of the consolidated income statement at 30 June 2025

(€/000) H1

2025 IAS29 effect H1 2025

Normalised

INCOME STATEMENT COMPONENTS

OPERATING REVENUE AND INCOME

Revenue 143,000 2,738 145,738 Other income 5,435 71 5,506 Total operating revenue and income 148,435 2,809 151,244

OPERATING COSTS

Materials (71,876) (1,001) (72,877) Change in inventories 6,737 40 6,777 Services (26,310) (252) (26,562) Personnel costs (37,103) (505) (37,608) Other operating costs (718) (1) (719) Costs for capitalised in -house work 1,072 - 1,072 Total operating costs (128,198) (1,719) (129,917)

OPERATING PROFIT BEFORE DEPRECIATION AND

AMORTISATION, CAPITAL GAINS/LOSSES, AND

IMPA IRMENT LOSSES/REVERSALS OF

IMPAIRMENT LOSSES OF NON -CURRENT ASSETS 20,237 1,090 21,327

Amortisation/depreciation (12,309) 2,143 (10,166) Capital gains on disposals of non -current assets 13 - 13 Impairment losses on non -current assets (109) - (109)

EBIT 7,832 3,233 11,065

Financial income 341 8 349 Financial expenses (4,732) (5) (4,737) Net income/(charges) from hyperinflation 2,535 (2,535) -

Exchange rate gains and losses 1,351 271 1,622

PROFIT BEFORE TAXES 7,327 972 8,299

Income taxes (1,219) 487 (732)

NET PROFIT FOR THE PERIOD 6,108 1,459 7,567

of which:

Minority interests 869 - 869

PROFIT ATTRIBUTABLE TO THE GROUP 5,239 1,459 6,698

Reconciliation of the Consolidated Income Statement for the Second Quarter

2026*

Sabaf Group | 2026 Half -Yearly Report 16

(€/000) Q2

2026 IAS29 effect Q2 2026

Normalised

INCOME STATEMENT COMPONENTS

OPERATING REVENUE AND INCOME

Revenue 74,280 (647) 73,633 Other income 3,390 (20) 3,370 Total operating revenue and income 77,670 (667) 77,003 -

OPERATING COSTS -

Materials (38,537) 114 (38,423) Change in inventories 3,520 (67) 3,453 Services (13,096) 47 (13,049) Personnel costs (18,392) 136 (18,256) Other operating costs (810) 1 (809) Costs for capitalised in -house work 774 - 774 Total operating costs (66,541) 231 (66,310)

OPERATING PROFIT BEFORE DEPRECIATION AND

AMORTISATION, CAPITAL GAINS/LOSSES, AND

IMPA IRMENT LOSSES/REVERSALS OF

IMPAIRMENT LOSSES OF NON -CURRENT ASSETS 11,129 (436) 10,693

Amortisation/depreciation (6,449) 1,339 (5,110) Capital gains on disposals of non -current assets (38) - (38) Impairment losses on non -current assets - - -

EBIT 4,642 903 5,545

Financial income 268 (4) 264 Financial expenses (4,396) 2 (4,394) Net income/(charges) from hyperinflation 1,176 (1,176) -

Exchange rate gains and losses 969 (16) 953

PROFIT BEFORE TAXES 2,659 (291) 2,368

Income taxes (4,148) 3,167 (981)

PROFIT/(LOSS) FOR THE PERIOD (1,489) 2,876 1,387

of which:

Minority interests 514 - 514

PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP (2,003) 2,876 873

(*) unaudited figures

Sabaf Group | 2026 Half -Yearly Report 17 Reconciliation of the Consolidated Income Statement for the Second Quarter

2025*

(€/000) Q2

2025 IAS29 effect Q2 2025

Normalised

INCOME STATEMENT COMPONENTS

OPERATING REVENUE AND INCOME

Revenue 69,353 1,790 71,143 Other income 2,372 51 2,423 Total operating revenue and income 71,725 1,841 73,566

OPERATING COSTS

Materials (34,838) (661) (35,499) Change in inventories 4,530 220 4,750 Services (13,359) (163) (13,522) Personnel costs (18,194) (321) (18,515) Other operating costs (290) 2 (288) Costs for capitalised in -house work 413 - 413 Total operating costs (61,738) (923) (62,661)

OPERATING PROFIT BEFORE DEPRECIATION AND

AMORTISATION, CAPITAL GAINS/LOSSES, AND

IMPA IRMENT LOSSES/REVERSALS OF

IMPAIRMENT LOSSES OF NON -CURRENT ASSETS 9,987 918 10,905

Amortisation/depreciation (6,031) 932 (5,099) Capital gains on disposals of non -current assets 11 - 11 Impairment losses on non -current assets 3 - 3

EBIT 3,970 1,850 5,820

Financial income 141 7 148 Financial expenses (3,542) (4) (3,546) Net income/(charges) from hyperinflation 689 (689) -

Exchange rate gains and losses 792 189 981

PROFIT BEFORE TAXES 2,050 1,353 3,403

Income taxes (166) 386 220

NET PROFIT FOR THE PERIOD 1,884 1,739 3,623

of which:

Minority interests 435 - 435

PROFIT ATTRIBUTABLE TO THE GROUP 1,449 1,739 3,188

(*) unaudited figures

Consolidated statement of financial position

Sabaf Group | 2026 Half -Yearly Report 18

(€/000) 30/06/202

6 31/03/202

6 31/12/202

5 30/06/202

5

ASSETS

NON -CURRENT ASSETS

Property, plant and equipment 106,006 104,744 102,185 104,004 Investment property 521 541 408 493 Intangible assets 54,846 55,292 54,443 56,457 Equity investments 86 86 86 86 Non -current receivables 446 1,064 984 989 Deferred tax assets 6,445 6,518 5,703 6,735 Total non -current assets 168,350 168,245 163,809 168,764

CURRENT ASSETS

Inventories 70,824 67,462 61,791 65,336 Trade receivables 73,939 69,175 63,524 69,631 Tax receivables 14,183 13,272 14,023 11,438 Other current receivables 5,563 4,936 3,293 3,596 Current financial assets 4,496 3,424 3,994 1,656 Cash and cash equivalents 40,084 43,979 34,536 33,670 Total current assets 209,089 202,248 181,161 185,327

ASSETS HELD FOR SALE - - - -

TOTAL ASSETS 377,439 370,493 344,970 354,091

SHAREHOLDERS' EQUITY AND LIABILITIES

SHAREHOLDERS’ EQUITY

Share capital 12,687 12,687 12,687 12,687 Retained earnings, Other reserves 76,191 85,672 73,042 77,853 IAS 29 reserve 59,551 58,477 60,993 52,818 Net profit for the period (937) 1,066 5,180 5,239 Total equity interest pertaining to the Parent Company 147,492 157,902 151,902 148,597 Minority interests 8,203 7,609 7,886 7,535 Total shareholders’ equity 155,695 165,511 159,788 156,132

NON -CURRENT LIABILITIES

Loans 80,512 85,676 73,712 75,459 Post -employment benefits and retirement provisions 4,147 4,069 3,855 4,005 Provisions for risks and charges 757 763 848 327 Deferred tax liabilities 6,434 3,968 3,890 4,117 Other non -current payables - - - 109 Total non -current liabilities 91,850 94,476 82,305 84,017

CURRENT LIABILITIES

Loans 30,098 25,518 25,042 26,260 Other financial liabilities 19,126 15,476 14,986 13,024 Trade payables 52,539 44,935 39,585 51,212 Tax payables 7,724 5,914 5,295 4,296 Other payables 20,407 18,663 17,969 19,150 Total current liabilities 129,894 110,506 102,877 113,942

LIABILITIES HELD FOR SALE - - - -

TOTAL LIABILITIES AND SHAREHOLDERS'

EQUITY 377,439 370,493 344,970 354,091

Consolidated Income Statement

Sabaf Group | 2026 Half -Yearly Report 19

(€/000) Q2 2026 (*) Q2 2025 (*) H1 2026 H1 2025

OPERATING REVENUE AND INCOME

Revenue 74,280 69,353 144,666 143,000 Other income 3,390 2,372 6,091 5,435 Total operating revenue and income 77,670 71,725 150,757 148,435

OPERATING COSTS

Materials (38,537) (34,838) (75,624) (71,876) Change in inventories 3,520 4,530 8,604 6,737 Services (13,096) (13,359) (25,955) (26,310) Personnel costs (18,392) (18,194) (37,358) (37,103) Other operating costs (810) (290) (922) (718) Costs for capitalised in -house work 774 413 1,349 1,072 Total operating costs (66,541) (61,738) (129,906) (128,198)

OPERATING PROFIT BEFORE

DEPRECIATION & AMORTISATION,

CAPITAL GAINS/LOSSES AND

IMPAIRMENT LOSSES/REVERSALS OF

IMPAIRMENT LOSSES ON NON -

CURRENT ASSETS (EBITDA) 11,129 9,987 20,851 20,237

Amortisation/depreciation (6,449) (6,031) (12,891) (12,309) Capital gains/(losses) on disposals of non -

current assets (38) 11 (5) 13 Impairment losses/reversals of impairment losses on non -current assets - 3 - (109)

OPERATING PROFIT (EBIT) 4,642 3,970 7,955 7,832

Financial income 268 141 536 341 Financial expenses (4,396) (3,542) (5,467) (4,732) Net income/(charges) from hyperinflation 1,176 689 340 2,535 Exchange rate gains and losses 969 792 1,554 1,351

PROFIT BEFORE TAXES 2,659 2,050 4,918 7,327

Income taxes (4,148) (166) (4,946) (1,219)

PROFIT/(LOSS) FOR THE PERIOD (1,489) 1,884 (28) 6,108

of which

Minority interests 514 435 909 869

PROFIT/(LOSS) ATTRIBUTABLE TO

THE GROUP (2,003) 1,449 (937) 5,239

(*) unaudited figures

Sabaf Group | 2026 Half -Yearly Report 20 CONDENSED CONSOLIDATED INTERIM FINANCIAL

STATEMENTS AT 30 JUNE 2026

Sabaf Group | 2026 Half -Yearly Report 21 Consolidated statement of financial position

(€/000) Notes 30/06/2026 31/12/2025

ASSETS

NON -CURRENT ASSETS

Property, plant and equipment 1 106,006 102,185 Investment property 2 521 408 Intangible assets 3 54,846 54,443 Equity investments 4 86 86 Non -current receivables 5 446 984 Deferred tax assets 22 6,445 5,703 Total non -current assets 168,350 163,809

CURRENT ASSETS

Inventories 6 70,824 61,791 Trade receivables 7 73,939 63,524 Tax receivables 8 14,183 14,023 Other current receivables 9 5,563 3,293 Current financial assets 10 4,496 3,994 Cash and cash equivalents 11 40,084 34,536 Total current assets 209,089 181,161

ASSETS HELD FOR SALE - -

TOTAL ASSETS 377,439 344,970

SHAREHOLDERS' EQUITY AND LIABILITIES

SHAREHOLDERS’ EQUITY

Share capital 12 12,687 12,687 Retained earnings, Other reserves 13 76,191 73,042 Reserve IAS29 59,551 60,993 Net profit for the period (937) 5,180 Total equity interest pertaining to the Parent Company 147,492 151,902 Minority interests 8,203 7,886 Total shareholders’ equity 155,695 159,788

NON -CURRENT LIABILITIES

Loans 14 80,512 73,712 Post -employment benefits and retirement provisions 16 4,147 3,855 Provisions for risks and charges 17 757 848 Deferred tax liabilities 22 6,434 3,890 Total non -current liabilities 91,850 82,305

CURRENT LIABILITIES

Loans 14 30,098 25,042 Other financial liabilities 15 19,126 14,986 Trade payables 18 52,539 39,585 Tax payables 19 7,724 5,295 Other payables 20 20,407 17,969 Total current liabilities 129,894 102,877

LIABILITIES HELD FOR SALE - -

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 377,439 344,970

Sabaf Group | 2026 Half -Yearly Report 22 Consolidated income statement

(€/000) Notes H1 2026 H1 2025

OPERATING REVENUE AND INCOME

Revenue 23 144,666 143,000 Other income 24 6,091 5,435 Total operating revenue and income 150,757 148,435

OPERATING COSTS

Materials 25 (75,624) (71,876) Change in inventories 8,604 6,737 Services 26 (25,955) (26,310) Personnel costs 27 (37,358) (37,103) Other operating costs 28 (922) (718) Costs for capitalised in -house work 1,349 1,072 Total operating costs (129,906) (128,198)

OPERATING PROFIT BEFORE DEPRECIATION &

AMORTISATION, CAPITAL GAINS/LOSSES AND

IMPAIRMENT LOSSES/REVERSALS OF IMPAIRMENT

LOSSES ON NON -CURRENT ASSETS (EBITDA) 20,851 20,237

Amortisation/depreciation (12,891) (12,309) Capital gains/(losses) on disposals of non -current assets (5) 13 Impairment losses/reversals of impairment losses on non-current assets - (109)

OPERATING PROFIT (EBIT) 7,955 7,832

Financial income 29 536 341 Financial expenses 30 (5,467) (4,732) Net income/(charges) from hyperinflation 31 340 2,535 Exchange rate gains and losses 32 1,554 1,351

PROFIT BEFORE TAXES 4,918 7,327

Income taxes 33 (4,946) (1,219)

PROFIT/(LOSS) FOR THE PERIOD (28) 6,108

of which

Minority interests 909 869

PROFIT/(LOSS) ATTRIBUTABLE TO THE GROUP (937) 5,239

(in €)

Basic earnings per share 34 (0.076) 0.420 Diluted earnings per share 34 (0.076) 0.420

Sabaf Group | 2026 Half -Yearly Report 23 Consolidated statement of comprehensive income

(€/000)

H1 2026 H1 2025

PROFIT/(LOSS) FOR THE PERIOD (28) 6,108

Total profits/losses that will be subsequently reclassified under profit (loss) for the period:

Forex differences due to translation of financial statements in foreign currencies (1,187) (19,597) Hedge accounting effect of derivative financial instruments 166 103

Tax effect

Total other profits/(losses) net of taxes for the period (1,021) (19,494)

COMPREHENSIVE INCOME/(EXPENSE) (1,049) (13,386)

of which

Profit for the period attributable to minority interests 909 869 Foreign exchange difference from translation of financial statements of minority interests 268 (960)

MINORITY INTERESTS 1,177 (91)

COMPREHENSIVE INCOME/(EXPENSE)

ATTRIBUTABLE TO THE GROUP (2,226) (13,295)

Sabaf Group | 2026 Half -Yearly Report 24 Consolidated statement of cash flows

(€/000) H1 2026 H1 2025

Cash and cash equivalents at beginning of period 34,536 30,641

Profit/(loss) for the period (28) 6,108

Adjustments for:

- Depreciation and amortisation for the period 12,891 12,309

- Realised gains/losses 5 (13)

- Profits and losses from equity investments - -

- Impairment losses/Reversals of impairment losses on non -current assets - 109

- Revaluation IAS 29 4,417 1,459

- Financial income and expenses (508) 1,758

- IFRS 2 measurement stock grant plan (115) 389

- Income tax 4,946 1,219

- Non -monetary foreign exchange differences 553 (1,942) Change in post -employment benefits 292 (44) Change in risk provisions (91) 7

Change in trade receivables (9,701) (6,230) Change in inventories (8,433) (6,099) Change in trade payables 12,797 9,972 Change in net working capital (5,337) (2,357)

Change in other receivables and payables, deferred taxes 422 2,997 Payment of taxes (676) (1,146) Payment of financial expenses (1,873) (1,484) Collection of financial income 527 318 Cash flows from operations 15,425 19,687

Investments in non -current assets

- intangible (645) (1,423)

- tangible (8,565) (10,876)

- financial - -

Disposal of non -current assets 58 169 Cash flows from investment activities (9,152) (12,130)

Free cash flow 6,273 7,557

Repayment of loans (15,293) (26,054) New loans 25,379 31,454 Change in financial assets (276) 1,351 Purchase of treasury shares (1,179) (1,262) Payment of dividends (8,004) (7,534) Cash flows from financing activities 627 (2,045)

Foreign exchange differences (1,352) (2,483)

Net cash flows for the period 5,548 3,029

Cash and cash equivalents at end of period 40,084 33,670

Sabaf Group | 2026 Half -Yearly Report 25 Statement of changes in consolidated shareholders' equity

Share

capital Share

premium

reserve Legal

reserve Treasur

y shares Translatio n reserve IAS 29 reserve Post -

employme

nt benefit

reserve Other

reserves Profit for the

period Group

sharehold

ers' equity Minority

interests Sharehold

ers’ equity

(€/000)

Balance at 31 December 2024 12,687 26,160 2,482 (2,320) (93,143) 57,661 (364) 155,713 6,928 165,804 7,940 173,744 Allocation of 2024 profit

- carried forward 55 (55) - -

- dividends (347) (6,873) (7,220) (729) (7,949) IFRS 2 measurement Stock Grant 595 595 595 Treasury share transactions (1,879) (1,879) (1,879) Hyperinflation (IAS 29) 3,332 9,022 12,354 12,354

Change in translation reserve (23,141) (23,141) (984) (24,125) Other components of the total result 77 132 5,180 5,389 1,659 7,048 Total profit at 31 December 2025 (23,141) 77 132 5,180 (17,752) 675 (17,077)

Balance at 31 December 2025 12,687 26,160 2,537 (4,199) (116,284) 60,993 (287) 165,115 5,180 151,902 7,886 159,788 Allocation of 2025 profit

- carried forward - - -

- dividends (1,964) (5,180) (7,144) (860) (8,004) IFRS 2 measurement Stock Grant (115) (115) (115) Treasury share transactions (1,179) (1,179) (1,179) Hyperinflation (IAS 29) (1,442) 7,696 6,254 6,254

Change in translation reserve (1,455) (1,455) 268 (1,187) Other components of the total result 166 (937) (771) 909 138 Total profit at 30 June 2026 (1,455) 166 (937) (2,226) 1,177 (1,049)

Balance at 30 June 2026 12,687 26,160 2,537 (5,378) (117,739) 59,551 (287) 170,898 (937) 147,492 8,203 155,695 25

Sabaf Group | 2026 Half -Yearly Report

26 NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Basis of presentation and accounting policies used

The condensed consolidated interim financial statements at 30 June 2026 were prepared in accordance with IAS 34 on interim reports. These condensed half -year consolidated financial statements do not include all the information required for the annual finan cial report and must be read together with the financial statements for the year ended 31 December 2025. Reference to IFRS also includes all current International Accounting Standards (IAS). They have been prepared in euro, rounding amounts to the nearest thousand, and are compared with the interim and annual consolidated financial statements of the previous year, prepared according to the same standards. They consist of the consolidated statement of financial position, the consolidated income statement, th e consolidated statement of comprehensive income, the statement of changes in consolidated shareholders’ equity, the consolidated statement of cash flows and these notes.

The condensed consolidated interim financial statements have been prepared on a going concern basis with reference to which the Group assessed that it is a going concern in accordance with paragraphs 25 and 26 of IAS 1 and Art. 2423 bis of the Italian Civi l Code, also due to the strong competitive position, positive profitability and solidity of the financial structure.

The consolidation policies, the criteria for translating foreign currency items, the accounting policies and the measurement criteria are the same as those used for preparing the financial statements at 31 December 2025, to which reference should be made f or additional information.

The adoption of the new standards and amendments effective from 1 January 2026 described below had no significant impact. The Group has not early adopted any new standards, interpretations or amendments issued but not yet in force.

New standards

Amendments to IFRS 9 and IFRS 7 'Classification and Measurement of Financial

Instruments'

On 30 May 2024, the IASB issued amendments to the classification and measurement of financial instruments. It clarifies when a financial liability is derecognised on the 'settlement date' and introduces an accounting policy option to derecognise financial liabilities settled through an electronic payment system before the settlement date if certain conditions are met.

Clarification was provided on how to measure the contractual cash flow characteristics of financial assets that include ESG and similar chara cteristics. In addition, the amendments clarify the treatment of non -recourse financial assets and contractually -bound instruments. The amendment to IFRS 7 requires additional disclosure for financial assets and liabilities with contractual terms that refe r to a contingent event (including those that are linked to ESG factors) and for equity instruments classified at fair value and recognised in other components of the comprehensive income statement. The amendments will become effective for annual periods b eginning on or after 1 January 2026, and entities may adopt the changes in the

Sabaf Group | 2026 Half -Yearly Report 27 classification of financial assets and related disclosures early. No significant impact is expected on the Group's condensed consolidated interim financial statements,

Annual cycle of improvements to IFRS accounting standards – Volume 11 In July 2024, the IASB issued nine amendments of limited scope as part of the regular maintenance of IFRS. The amendments include clarifications, simplifications, corrections or changes aimed at improving consistency in the standards: IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. The amendments will take effect for financial years beginning on or after 1 January 2026.

Early adoption is permitted, provided that adequate information is provided.

These changes are not expected to have a material impact on the Group’s condensed consolidated interim financial statements.

Amendments to IFRS 9 and IFRS 7 “Contracts referencing nature -dependent electricity” In December 2024, the IASB issued amendments to IFRS 9 and IFRS 7 relating to contracts for the purchase of electricity generated from natural sources. These amendments clarify the application of the requirements relating to the ‘ own use ’ exemption for contracts falling within its scope; they also amend the requirements for designating the hedged item in cash flow hedge accounting in relation to such contracts and introduce specific disclosure requirements.

The amendments will take effect for financial years beginning on or after 1 January 2026; early adoption is permitted, but appropriate disclosure must be provided. The amendments relating to the own -use exemption must be applied retrospectively, whilst tho se relating to hedge accounting must be applied prospectively to new designated hedging relationships from the date of initial application. The amendments to the disclosure requirements under IFRS 7 must be applied in conjunction with the amendments to IFR S 9.

Based on the analyses carried out, no significant impact is expected on the Group’s condensed consolidated interim financial statements.

Sabaf Group | 2026 Half -Yearly Report 28 Financial statements The Group has adopted the following formats:

- current and non -current assets and current and non -current liabilities are stated separately in the statement of the financial position;

- an income statement that expresses costs using a classification based on the nature of

each item;

- a comprehensive income statement, which records all changes in Other overall earnings (losses) during the year, generated by transactions other than those conducted with shareholders and based on specific IAS/IFRS standards;

- a statement of cash flows that presents cash flows originating from operating activity, using the indirect method.

Use of these formats permits the most meaningful representation of the Group’s operating results, financial position and cash flows.

In the statement of financial position as at 30 June 2026, tax incentive receivables relating to investments in property, plant and equipment in Turkey (€2,288 thousand) were recognised under “Tax receivables” rather than under “Deferred tax assets”, where they had previously been recognised, in order to ensure a more accurate presentation of the tax nature of these amounts. Accordingly, the receivables at 31 December 2025 (€2,982 thousand) have been reclassified under “Tax receivables” in the statement of financial position for comparative purposes.

Scope of consolidation The scope of consolidation at 30 June 2026 comprises the parent company Sabaf S.p.A. and the following companies controlled by Sabaf S.p.A., consolidated on a line -by-line basis:

- Faringosi Hinges S.r.l.

- Sabaf do Brasil Ltda (Sabaf Brazil)

- Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf Turkey)

- Sabaf Appliance Components (Kunshan) Co., Ltd. (Sabaf China)

- A.R.C. S.r.l.

- Sabaf India Private Limited ( Sabaf India)

- Sabaf Mexico Appliance Components (Sabaf Mexico)

- C.M.I. S.r.l.

- C.G.D. S.r.l.

- P.G.A s.r.l.

- Sabaf America Inc. (Sabaf America)

- Mansfield Engineered Components LLC (MEC)

Control is the power to determine, directly or indirectly, the financial and management policies of an entity so as to obtain benefits from its activities. Subsidiaries are consolidated from the date on which control begins until the date on which control ceases.

Compared with 30 June 2025 and 31 December 2025, the scope of consolidation is unchanged.

The companies in which Sabaf S.p.A. simultaneously possess the following three elements are considered subsidiaries: (a) power over the company; (b) exposure or rights to variable returns resulting from involvement therein; (c) ability to affect the size o f these returns by exercising power. If these subsidiaries exercise a significant influence, they are consolidated as from the date in which control begins until the date in which control ends so as to provide a correct representation of the Group’s operat ing results, financial position and cash flows.

Sabaf Group | 2026 Half -Yearly Report 29 Consolidation criteria

The criteria applied for consolidation are as follows:

a) Assets and liabilities, income and costs in financial statements consolidated on a line -by-

line basis are incorporated into the Group financial statements, regardless of the entity of the equity interest concerned. In addition, the carrying value of equity interests is eliminated against the shareholders’ equity relating to investee companies.

b) Positive differences arising from elimination of equity investments against the carrying value of shareholders’ equity at the date of first -time consolidation are attributed to the higher values of assets and liabilities when possible and, for the remainde r, to goodwill.

c) Payable/receivable and cost/revenue items between consolidated companies and profits/losses arising from intercompany transactions are eliminated.

d) If minority shareholders exist, the portion of shareholders’ equity and profit/loss for the period pertaining to them is posted in specific items of the consolidated statement of financial position and income statement.

Conversion into euro of foreign -currency income statements and statements of financial

position

Separate financial statements of each company belonging to the Group are prepared in the currency of the country in which that company operates (functional currency). For the purposes of the consolidated financial statements, the financial statement of eac h foreign entity is expressed in euro, which is the Group’s functional currency and the reporting currency for the consolidated financial statements.

The balance sheet items in accounts expressed in currencies other than euro are converted by applying current end -of-year exchange rates. Income statement items are translated at the average exchange rates for the period, with the exception of the financia l statements of the Turkish subsidiary which operates in an hyperinflationary economy. The latter’s income statement has been translated using the closing rate as required by IAS 21.42.b.

Foreign exchange differences arising from the comparison between opening shareholders’ equity translated at current exchange rates and at historical exchange rates, together with the difference between the profit/(loss) expressed at average and current exc hange rates, are allocated to “Other Reserves” in shareholders’ equity.

The exchange rates used for conversion into euro of the statements of financial position of the foreign subsidiaries, prepared in local currency, are shown in the following table:

Description of

currency Spot exchange

rate at

30/06/202 6 Average

exchange rate

01/01/2026 -

30/06/2026 Spot

exchange

rate

31/12/2025 Exchange

rate in effect at

30/06/2025 Average

exchange rate

01/01/2025 -

30/06/2025

Brazilian real 5.90030 6.01268 6.43640 6.4384 6.2913 Turkish lira 53.16420 52.06569 50.48380 46.5682 41.0912 Chinese renminbi 7.73140 8.00731 8.22620 8.3970 7.9238 Indian Rupee 107.85650 108.59444 105.59650 100.5605 94.0693 Mexican peso 19.90300 20.37544 21.11800 22.0899 21.8035 US Dollar 1.13940 1.16660 1.17500 1.1720 1.0928

Sabaf Group | 2026 Half -Yearly Report 30 Segment reporting

The Group’s operating segments in accordance with IFRS 8 - Operating Segments are the business segments that generate revenue and costs, whose results are periodically assessed by top management in order to assess performance and decisions regarding resour ce allocation.

The Group operating segments are the following:

- gas parts (household and professional);

- hinges;

- electronic components.

Effective from these condensed consolidated interim financial statements, the “induction cooking components” operating segment, previously reported separately in 2025, has been consolidated into the “Electronic components” operating segment. This change re flects the operational and organisational integration between the two segments.

Use of estimates

The preparation of the interim financial statements and the notes thereto in accordance with the IFRS requires the Directors to make estimates and assumptions that affect the carrying amount of revenue, costs, assets and liabilities of the interim financia l statements and the disclosures on contingent assets and liabilities at 30 June 2026. In the event that in future these estimates and assumptions, which are based on the Directors’ best assessments, should deviate from actual circumstances, they will be a mended appropriately at the time the circumstances change. Estimates and assumptions are regularly reviewed and the effects of each change immediately reflected in the income statement.

In these consolidated interim financial statements, the calculation of the income taxes generated in Turkey is estimated in accordance with current tax legislation, which may be subject to further changes during the year.

Furthermore, certain measurement processes, particularly the more complex ones such as the identification of any impairment losses on non -current assets, are generally carried out in full only as part of the preparation of the annual financial statements, when all information that could be necessary is available, except when there are impairment indicators that require an immediate impairment test.

Hyperinflation - Turkey: application of IAS 29

In the condensed consolidated interim financial statements at 30 June 2026, IAS 29 was applied with reference to the subsidiary Sabaf Turkey. The effect related to the re -measurement of non -

monetary assets and liabilities, equity items and income statement items in the first half of 2026 was recognised in a separate item in the income statement under financial income and expenses. The related tax effect was recognised in taxes for the period.

The cumulative levels of general consumer price indices are shown below:

Consumer price index Value at 31/12/2025 Value at 30/06/2026 Change

TURKSTAT 3,513.87 4,137.92 +17.76%

Consumer price index Value at 31/12/2024 Value at 31/12/2025 Change

TURKSTAT 2,684.55 3,513.87 +30.89%

Consumer price index Value at 31/12/2023 Value at 31/12/2024 Change

TURKSTAT 1,859.38 2,684.55 +44.38%

Sabaf Group | 2026 Half -Yearly Report 31 Effects of the application of the hyperinflation on the Consolidated Statement of Financial Position (€/000) 30/06/2026 Hyperinflation

effect 30/06/2026

with Hyperinflation effect Total non -current assets 133,353 34,997 168,350 Total current assets 207,932 1,157 209,089 Total assets 341,285 36,154 377,439 Total shareholders’ equity 122,367 33,328 155,695 Total non -current liabilities 89,024 2,826 91,850 Total current liabilities 129,894 - 129,894 Total liabilities and shareholders' equity 341,285 36,154 377,439 Effects of the application of the hyperinflation on the Consolidated Income Statement

(€/000) 6M

2026 Hyperinflation

effect 6 months 2026 with Hyperinflation effect Operating revenue and income 149,675 1,082 150,757 Operating costs (129,465) (441) (129,906)

EBITDA 20,210 641 20,851

EBIT 10,015 (2,060) 7,955

Profit before taxes 6,594 (1,676) 4,918 Income taxes (2,205) (2,741) (4,946) Minority interests 909 - 909 Profit/(loss) for the period 3,480 (4,417) (937)

Sabaf Group | 2026 Half -Yearly Report 32 Comments on the main items of the statement of financial position

1. PROPERTY, PLANT AND EQUIPMENT

Property Plant and equipment Other assets Assets under

construction Total

Cost

At 31 December 2025 80,314 281,183 78,594 6,421 446,512 Increases 1,366 2,422 1,615 4,858 10,261 Reclassifications 13 4,431 (195) (4,339) (90) Disposals - (1,448) (199) - (1,647)

Monetary revaluation

(IAS 29) 1,514 4,902 1,776 - 8,192

Forex differences 218 457 96 (7) 764 At 30 June 2026 83,425 291,947 81,687 6,933 463,992

Accumulated

amortisation

At 31 December 2025 39,254 235,622 69,451 - 344,327 Increases 1,690 5,963 2,144 - 9,797 Disposals - (1,341) (95) - (1,436)

Monetary revaluation

(IAS 29) 660 3,009 1,440 - 5,109

Forex differences (31) 134 86 - 189 At 30 June 2026 41,573 243,387 73,026 - 357,986

Carrying amount

At 31 December 2025 41,060 45,561 9,143 6,421 102,185 At 30 June 2026 41,852 48,560 8,661 6,933 106,006

The investments during the period were aimed at the Group's organic growth in terms of internationalisation and product innovation, as well as optimising the efficiency and automation of production processes. Key investments include automated assembly mach inery for dishwasher hinges, moulds and equipment for new product industrialisation, and machinery designed to enhance production process flexibility.

Decreases mainly relate to the disposal of machinery no longer in use.

Assets under construction include machinery under construction and advance payments to suppliers of capital equipment.

The carrying amount of the item “Property” is made up as follows:

30/06/2026 31/12/2025 Change Land 9,469 9,313 156 Industrial buildings 32,383 31,747 636 Total 41,852 41,060 792

Changes in property, plant and equipment resulting from the application of IFRS 16 are shown

below:

Property Plant and equipment Other assets Total

Sabaf Group | 2026 Half -Yearly Report 33 At 31 December 2025 4,120 - 1,389 5,509 Increases 1,215 - 347 1,562 Monetary revaluation (IAS 29) 408 - - 408 Decreases - - (82) (82) Reclassifications - - - -

Amortisation/depreciation (721) - (187) (908) Foreign exchange differences (147) - - (147) At 30 June 2026 4,875 - 1,467 6,342

At 30 June 2026, the Group found no endogenous or exogenous indicators of impairment of its property, plant and equipment. Consequently, no impairment test was carried out.

2. INVESTMENT PROPERTY

Cost

At 31 December 2025 1,468

Increases 154

Disposals -

At 30 June 2026 1,622

Accumulated depreciation and

impairment losses

At 31 December 2025 1,060 Depreciations for the period 41 Derecognition due to disposal -

At 30 June 2026 1,101

Carrying amount

At 31 December 2025 408 At 30 June 2026 521

This item includes non -operating buildings owned by the Group: these are mainly properties for residential use, located in Ospitaletto near Sabaf S.p.A.’s headquarters, held for rental or sale.

Changes in investment property resulting from the application of IFRS 16 are shown below:

Investment

property

At 31 December 2025 -

Increases 154

Decreases -

Amortisation/depreciation (19)

At 30 June 2026 135

At 30 June 2026, the Group found no internal or external indicators of impairment of its investment property. Consequently, no impairment test was carried out.

3. INTANGIBLE ASSETS

Sabaf Group | 2026 Half -Yearly Report 34 Cost Goodwill Patents, software and know -how Development

costs Other

intangible

assets Total

At 31 December 2025 37,304 12,974 15,337 33,320 98,935 Increases - 233 356 56 645 Decreases - - - (3) (3) Reclassifications - 37 (66) 70 41

Monetary revaluation

(IAS 29) 2,939 171 - 2,002 5,112

Forex differences (856) (27) - (522) (1,405) At 30 June 2026 39,387 13,388 15,627 34,923 103,325

Accumulated

amortisation

At 31 December 2025 7,461 11,403 8,690 16,938 44,492 Increases - 316 883 1,855 3,054 Decreases - - - (1) (1) Reclassifications - 14 (14) - -

Monetary revaluation

(IAS 29) - 146 - 1,163 1,309

Forex differences - (22) - (353) (375) At 30 June 2026 7,461 11,857 9,559 19,602 48,479

Carrying amount

At 31 December 2025 29,843 1,571 6,647 16,382 54,443 At 30 June 2026 31,926 1,531 6,068 15,321 54,846

Goodwill

In accordance with IAS 36, goodwill is allocated to cash -generating units ("CGUs") identified on the basis of operating segments and legal entities that correspond to the acquired businesses.

The CGUs to which goodwill has been allocated are shown below:

CGU 31/12/2025 Revaluation IAS 29 Forex differences 30/06/2026

Professional

burners 1,770 - - 1,770

Electronic

components 17,428 2,939 (878) 19,489

PGA electronic

components 1,804 - - 1,804 Hinges 4,414 - - 4,414 C.M.I. hinges 3,680 - - 3,680 MEC hinges 747 - 22 769 Total 29,843 2,939 (856) 31,926 The Group tests goodwill for impairment at least once a year or more frequently if there are indications of impairment. Recoverable amount is determined through value of use, by discounting expected cash flows.

At 31 December 2025, the Group had performed an impairment test on the goodwill recognised in the period 2026 -2028, using a plan for each CGU. For further information, reference should be made to the consolidated financial statements at 31 December 2025.

Sabaf Group | 2026 Half -Yearly Report 35 During the preparation of these condensed consolidated interim financial statements, an analysis was carried out in order to identify any impairment indicators, considering both external and internal factors. In this respect, the following activities were carried out:

▪ an analysis of the Group’s operating environment, with a particular focus on evolving market trends and the Group’s strategic outlook;

▪ comparison of the actual financial performance for the first half of 2026 with the budget and that for the first half of 2025;

▪ review of the expected results for future years, as per the 2026 -2028 plans drawn up by management during the impairment test at 31 December 2025;

▪ analysis of changes in the carrying amounts of assets allocated to individual CGUs at 30 June 2026, compared to 31 December 2025;

▪ analysis of the trend, in the first half of 2026, of the parameters underlying the discount rate used to perform the impairment test at 31 December 2025 (WACC);

▪ review of the sensitivity analyses performed as part of the impairment tests at 31 December 2025.

The Group also assessed the relationship between the market capitalisation at 30 June 2026 (€158.8 million) and the carrying amount of the Group's shareholders' equity (€147.5 million), which shows a positive difference.

The above analyses confirmed that there were no elements indicating a possible reduction in the recoverable amount of the company's assets and therefore there was no need to prepare an impairment test at 30 June 2026, except for the “Electronic components” CGU. Indeed, the financial performance of this CGU in the first half of the year fell short of budget forecasts, mainly due to the deferral of certain complex projects initially scheduled for the first half of 2026 to subsequent years (2027 and 2028), and the weakness characterising the Turkish market. Furthermore, net invested capital increased as a result of the application of IAS 29 on hyperinflation. Consequently, the recoverability of the “Electronic Components” CGU was tested for impairment based on the most recent data available. The recoverable amount was calculated based on a discount rate (WACC) of 11.39% (11.24% in the impairment test carried out at 31 December 2025) and a growth rate (g) of 2.5%, unchanged from the 2025 impairment test. The foll owing activities were carried out to complete the analysis:

▪ a sensitivity analysis to test the recoverability of goodwill against changes in the basic assumptions used to determine the discounted flows. Specifically, the WACC, the g -rate and the EBITDA reduction that would lead to an impairment loss - while keeping all other underlying assumptions unchanged - are equal to 11.90%, 1.90% and -4.6%,

respectively;

▪ checking the recoverability of goodwill against possible increases and decreases of 50 bps in the WACC and 25 bps in the g -rate;

▪ checking the recoverability of goodwill against possible decreases of 10% and 20% in EBITDA.

The sensitivity analyses show a difference between recoverable amount and net invested capital ranging from +9.2 million to -€5.7 million. The analysis, approved by the Board of Directors on 8 September 2026, showed that the recoverable amount exceeded the carrying amount. Consequently, no goodwill impairment was required.

Development costs

Sabaf Group | 2026 Half -Yearly Report 36 Development costs mainly refer to the development of new products to extend the range and features offered within the induction cooking sector (carrying amount at 30 June 2026: €4,281 thousand). To this end, a specific project team was set up to develop th e project know -how in -

house, with patents, proprietary software and hardware.

Other intangible assets Other intangible assets mainly refer to the purchase price allocation carried out following the acquisition of Okida Elektronik (in September 2018), of C.M.I. S.r.l. (in July 2019), of P.G.A. (in October 2022) and of MEC (in July 2023).

The carrying amount of other intangible assets is broken down as follows:

30/06/2026 31/12/2025 Change Customer relationship 10,781 11,526 (745) Brand 3,001 3,118 (117) Know -how 239 289 (50) Patents 978 1,244 (266) Other 322 205 117 Total 15,321 16,382 (1,061)

With respect to patents, software, development costs and other intangible assets, no internal and external indicators that would require the performance of an impairment test were identified.

4. EQUITY INVESTMENTS

30/06/2026 31/12/2025 Change Other equity investments 86 86 -

Total 86 86 -

5. NON -CURRENT RECEIVABLES

30/06/2026 31/12/2025 Change Tax receivables 224 117 107 Guarantee deposits 222 196 26 Receivables from former P.G.A.

shareholders - 671 (671) Total 446 984 (538) Tax receivables relate to indirect taxes expected to be recovered after 30 June 2027.

Receivables from former P.G.A. shareholders have been reclassified as current receivables as, at the reporting date, they were due within one year.

Sabaf Group | 2026 Half -Yearly Report 37 6. INVENTORIES

30/06/2026 31/12/2025 Change Raw Materials 33,257 27,174 6,083 Semi -processed goods 17,681 16,601 1,080 Finished products 25,098 23,729 1,369 Provision for inventory write -downs (5,212) (5,713) 501 Total 70,824 61,791 9,033

The increase in inventories compared with 31 December is mainly attributable to the rise in raw materials, which was intended to ensure the continuity of supplies. The carrying amount of inventories at the reporting date also reflects the normal seasonalit y of the business.

At 30 June 2026, their carrying amount was adjusted based on an improved estimate of the idle capacity and obsolescence risk, measured by analysing slow and non -moving inventory.

7. TRADE RECEIVABLES

30/06/2026 31/12/2025 Change Total trade receivables 75,801 65,557 10,244 Bad debt provision (1,862) (2,033) 171 Net total 73,939 63,524 10,415

The increase in trade receivables at 30 June 2026 compared to 31 December 2025 is due to seasonality. There were no significant changes in the payment terms agreed with customers.

Trade receivables include insured receivables worth approximately €25 million (€22.3 million at 31 December 2025).

The breakdown of trade receivables by past due period is shown below:

30/06/2026 31/12/2025 Change Current receivables (not past due) 59,646 47,802 11,844 Outstanding up to 30 days 8,520 8,455 65 Outstanding from 30 to 60 days 3,301 5,206 (1,905) Outstanding from 60 to 90 days 1,046 2,368 (1,322) Outstanding for more than 90 days 3,288 1,726 1,562 Total 75,801 65,557 10,244

The bad debt provision was adjusted to the better estimate of the credit risk and expected loss at the end of the period. Changes during the period were as follows:

31/12/2025 2,033

Provisions 174

Uses/Releases (296)

Forex differences (49)

30/06/2026 1,862

Sabaf Group | 2026 Half -Yearly Report 38 8. TAX RECEIVABLES

30/06/2026 31/12/2025 Change For income tax 4,925 5,667 (742) For VAT and other sales taxes 8,941 8,219 722 Other tax credits 317 137 180 Total 14,183 14,023 160

At 30 June 2026, income tax receivables mainly include:

• €2,847 thousand relating to tax credits for investments in capital goods;

• €214 thousand relating to the tax credit for research and development;

• €635 thousand relating to the Patent Box tax credit for 2020 and 2021;

• advance payments on Italian income taxes: IRES for €482 thousand and IRAP for €104 thousand.

9. OTHER CURRENT RECEIVABLES

30/06/2026 31/12/2025 Change Advances to suppliers 1,840 1,382 458 Accrued income and prepaid expenses 2,213 1,030 1,183 Receivables from former P.G.A.

shareholders 685 - 685 Receivables from insurance companies 384 7 377 Credits to be received from suppliers 93 748 (655) Other 348 126 222 Total 5,563 3,293 2,270

The amounts to be received from suppliers mainly refer to bonuses paid to the Group for the attainment of purchasing objectives.

The increase in accrued income and prepaid expenses at 30 June 2026 compared to 31 December 2025 is due to the recognition of costs or revenues whose collection or payment occurs annually at the beginning or end of year, such as insurance premiums.

Receivables from former P.G.A. shareholders, already agreed upon between the parties and discounted, refer to compensation obligations envisaged upon the occurrence of certain events (liabilities incurred by P.G.A.) regulated by the acquisition agreement. Compared with 31 December 2025, these receivables have been reclassified from non -current receivables as they are due within one year at the reporting date.

10. CURRENT FINANCIAL ASSETS

30/06/2026 31/12/2025 Change Time deposits and other financial assets 4,041 3,738 303 Derivative instruments on interest rates 455 256 199 Total 4,496 3,994 502

Time deposits mainly refer to certain foreign subsidiaries; these are temporary investments of liquidity in excess of normal operations at better yields than ordinary deposits.

Derivatives refer to:

Sabaf Group | 2026 Half -Yearly Report 39 ▪ an interest rate swap (IRS) not designated as a cash flow hedge and therefore recognised at fair value through profit or loss, with "Financial income" as a balancing entry. This IRS has the same amount and maturity as an unsecured loan currently being repa id, the outstanding balance of which was €5,235 at 30 June 2026;

▪ six interest rate swaps (IRS) to which the Group applies hedge accounting, checking their compliance with the requirements of IFRS 9. These contracts have amounts and maturities that correspond to unsecured loans, the outstanding balance of which stood at €53,084 at 30 June 2026.

11. CASH AND CASH EQUIVALENTS

Cash and cash equivalents, which amounted to €40,084 thousand at 30 June 2026 (€34,536 thousand at 31 December 2025), consist of cash and bank current account balances of which €32,286 thousand related to the Italian group companies. Changes in cash and ca sh equivalents are analysed in the statement cash flows.

Sabaf Group | 2026 Half -Yearly Report 40 12. SHARE CAPITAL

Sabaf S.p.A.’s share capital at 30 June 2026 consists of 12,686,795 shares with a par value of €1.00 each and has not changed compared with 31 December 2025.

13. TREASURY SHARES AND OTHER RESERVES

Treasury shares

During the first half of the year, no treasury shares were sold. Pursuant to the shareholders’ meeting resolution of 29 April 2025 and under the share buyback program, the Company repurchased 86,732 treasury shares at an average price of €13.58 per share.

At 30 June 2026, Sabaf S.p.A. held 370,252 treasury shares (2.918% of the share capital), recognised as an adjustment to shareholders’ equity at a weighted average unit value of €14.52 (the closing stock market price of the Share at 30 June 2026 was €12.52 ). There were 12,316,543 outstanding shares at 30 June 2026.

Stock grant reserve "Retained earnings, other reserves" of €76,191 thousand (31 December 2025: €73,042 thousand) include the stock grant reserve of €875 thousand, which includes the 30 June 2026 measurement of the fair value of the rights assigned to receive shares of the Par ent Company relating to the 2024 – 2026 Stock Grant Plan, medium - and long -term incentive plan for directors and employees of the Sabaf Group. For additional information, reference should be made to note 38.

Cash Flow Hedge reserve The following table shows the change in the Cash Flow Hedge reserve related to the application of IFRS 9 on derivative contracts and referring to the recognition in equity of the effective part of the derivative contracts entered into to hedge the currency , interest rate and raw material price risk to which the Group applies hedge accounting. For additional information, reference should be made to notes 10 and 15.

Value at 31 December 2025 67 Change during the period 167 Value at 30 June 2026 234

14. LOANS

30/06/2026 31/12/2025

Current Non -current Total Current Non -current Total Bond issue - 29,808 29,808 - 29,790 29,790 Unsecured loans 28,234 46,450 74,684 21,181 40,254 61,435 Short -term bank loans - - - 2,000 - 2,000 Advances on bank receipts or invoices 17 - 17 82 - 82 Leases 1,722 4,254 5,976 1,600 3,668 5,268 Interest payable 92 - 92 179 - 179 Total 30,065 80,512 110,577 25,042 73,712 98,754

Changes in loans over the half -year are shown in the statement of cash flows.

Sabaf Group | 2026 Half -Yearly Report 41 In 2021, Sabaf S.p.A. issued a €30 million bond fully subscribed by PRICOA with a maturity of 10 years, an average life of 8 years and a fixed coupon of 1.85% per year. The loan has some covenants, defined with reference to the consolidated financial state ments at the reporting date and at 30 June each year, all complied with at 30 June 2026 and for which, according to the Group's business plan, compliance is also expected in subsequent years.

During the period, the Group took out new unsecured loans totalling €25 million in order to finance the investments made, support the growth strategy set out in the business plan and extend the average maturity of its debt, thereby optimising the maturity profile. All loan agreements have an original maturity of 5 years and are repayable in instalments.

Some unsecured loans include financial covenants which, at 30 June 2026, had been fully complied with and for which compliance is also expected at 31 December 2026.

To manage the interest rate risk, the bond issue and some unsecured loans were either fixed -

rate or hedged by IRS, with a total residual value of €62,038 thousand at 30 June 2026. The residual value of the unsecured loans taken out at a variable rate and n ot covered by IRS was €12,645 thousand.

The following table shows the changes in lease liabilities during the first half of 2026:

Lease liabilities at 31 December 2025 5,268 New agreements signed during the first half of 2026 896 Repayments during the first half of 2026 (168) Forex differences (20) Lease liabilities at 30 June 2026 5,976

Lease liabilities at 30 June 2026 include operating leases of €5,763 thousand and finance leases of €213 thousand, all recognised in accordance with IFRS 16.

15. OTHER FINANCIAL LIABILITIES

30/06/2026 31/12/2025

Current Non -current Current Non -current Option on MEC minorities 19,126 - 14,982 -

Derivative instruments on interest rates 18 - 4 -

Currency derivatives 15 - - -

Total 19,159 - 14,986 -

As part of the acquisition of MEC, a call option in favour of Sabaf for the remaining 49% of the share capital, exercisable from 2028, and a put option in favour of the minority shareholders, exercisable from 2025 to 2028, were subscribed. The valuation of the residual share will be based on an Enterprise Value equal to 8 times MEC's average EBITDA of the two financial statements preceding the date of exercise of the relevant option, adjusted for the net financial position at that date. The assignment of an option to sell in the terms described above (put option) required the recording of a liability corresponding to the estimated redemption value, expected at the time of any exercise of the option. To this end, a financial liability of €14,982 thousand was recognised in the consolidated financial statements at 31 December 2025. As required by IFRS 9 and based on MEC’s most recent results, the Group revised its estimated outlay to €19,126 thousand. This led to a €4,144 thousand increase in the liability, with the

Sabaf Group | 2026 Half -Yearly Report 42 recognition of a balancing entry of €3,591 thousand in financial expenses and exchange rate losses of €553 thousand.

Derivative instruments refer to an interest rate swap (IRS) entered into during the period with an amount and maturity coinciding with those of an unsecured loan, whose residual balance at 30 June 2026 was €5,000 thousand. “Currency derivatives” include th e fair value of forward contracts designated as hedges of forecast cash flows arising from sales in US dollars. These derivatives were designated as cash flow hedges and therefore recognised in accordance with the hedge accounting method (note 13).

16. POST -EMPLOYMENT BENEFITS AND RETIREMENT PROVISIONS

30/06/2026 31/12/2025 Change Post -employment benefits 4,147 3,855 292 Total 4,147 3,855 292

17. PROVISIONS FOR RISKS AND CHARGES

31/12/2025 Provisions

. Uses /

Releases Exchange

rate

differences 30/06/2026

Provision for agents’ indemnities 181 - (29) - 152 Product guarantee fund 60 - (15) - 45 Provision for legal risks 607 - (67) 20 560 Total 848 - (111) 20 757

The provision for agents’ indemnities covers amounts payable to agents if the Group terminates the agency relationship.

The product guarantee fund covers the risk of returns or charges by customers for products already sold.

The provision for legal risks includes accruals made in respect of disputes which arose in the ordinary course of business; these reflect the best estimate of the related contingent liabilities based on the information currently available. During the perio d, the provision was used by €22 thousand in order to settle minor disputes. It was released by €45 thousand as the conditions that had led to the accrual no longer applied.

The accruals to the provisions for risks are an estimate of future outlays, calculated in part on the basis of historical data.

During the first half of 2026, the Italian tax authorities (Bologna Provincial Directorate) conducted a tax audit at CMI, subsequently issuing transfer pricing findings for IRES and IRAP purposes regarding transactions between CMI and Sabaf Turkey. CMI ha s submitted technical defence briefs outlining why it considers the allegations unfounded, and has initiated an administrative settlement procedure. Depending on how the proceedings unfold, the Company reserves the right to determine the best defence strat egies, including potential litigation. Based on currently available information, the Group believes CMI’s position is supported by sound arguments demonstrating that the allegations are groundless. Consequently, no provision has been recognised in these co nsolidated interim financial statements.

Sabaf Group | 2026 Half -Yearly Report 43 18. TRADE PAYABLES

30/06/2026 31/12/2025 Change Total 52,539 39,585 12,954

At 30 June 2026, there were no overdue payables of a significant amount and the Group did not receive any injunctions for overdue payables. The increase in trade payables compared with 31 December 2025 is in line with the rise in the purchases of the perio d.

19. TAX PAYABLES

30/06/2026 31/12/2025 Change Income tax payables 2,640 384 2,256 Withholding taxes 647 1,392 (745) Other tax payables 4,546 3,519 1,027 Total 7,833 5,295 2,538

20. OTHER CURRENT PAYABLES

30/06/2026 31/12/2025 Change To employees 9,163 7,132 2,031 To social security institutions 3,393 3,572 (179) To agents 312 283 29 Advances from customers 1,400 639 761 Other current payables 6,139 6,343 (204) Total 20,407 17,969 2,438

At 30 June 2026, payables due to employees included amounts for the thirteenth month’s pay and for holidays accrued but not taken. Other current payables include accrued liabilities and deferred income totalling €5,619 thousand.

Sabaf Group | 2026 Half -Yearly Report 44 21. TOTAL FINANCIAL DEBT 30/06/2026 31/12/2025 Change A. Cash 40,084 34,536 5,548 B. Cash equivalents - - -

C. Other current financial assets 4,496 3,994 502 D. Liquidity (A+B+C) 44,580 38,530 6,050 E. Current financial payable 20,990 18,847 2,143 F. Current portion of non -current financial debt 28,234 21,181 7,053 G. Current financial debt (E+F) 49,224 40,028 9,196 H. Net current financial debt (G -D) 4,644 1,498 3,146 I. Non -current financial payable 50,704 43,922 6,782 J. Debt instruments 29,808 29,790 18 K. Trade payables and other non -current payables - - -

L. Non -current financial debt (I+J+K) 80,512 73,712 6,800 M. Total financial debt (H+L) 85,156 75,210 9,946

The consolidated statement of cash flows, which shows the changes in cash and cash equivalents (sum of letters A. and B. of this statement), describes in detail the cash flows that led to the change in the net financial debt.

22. DEFERRED TAX ASSETS AND LIABILITIES

30/06/2026 31/12/2025 Change Deferred tax assets 6,445 5,704 741 Deferred tax liabilities (6,433) (3,891) (2,542) Net position 12 1,813 (1,801)

The table below analyses the nature of the temporary differences that determine the recognition of deferred tax liabilities and assets and changes during the period under review:

Non -current

tangible and

intangible

assets Provisions,

value

adjustments Fair value of

derivative

instruments Goodwill

. Tax

incentives Tax

losses Actuarial

evaluation of post -

employment

benefits effect Other

temporary

differences Total

31/12/2025 (1,279) 2,245 (73) 355 - 188 118 76 183 1,813

Through profit

or loss 475 (196) - (90) - 753 - (2,683) 90 (1,651) In

shareholders'

equity - - (51) - - - - - - (51)

Forex

differences (54) (3) - - - - - (59) 17 (99) 30/06/2026 (858) 2,046 (124) 265 - 941 118 (2,666) 290 12

Deferred taxes related to “non -current property, plant and equipment and intangible assets” arise from the difference between the related carrying amount and the amount calculated for tax purposes (purchase price allocation, tax revaluations made in previo us years on Sabaf Turkey's assets, other differences).

Deferred tax assets relating to goodwill refer to the step -up in the tax basis of the investment in Faringosi Hinges S.r.l. made in 2011 pursuant to Decree Law 98/2011, deductible in ten instalments starting in 2018.

Sabaf Group | 2026 Half -Yearly Report 45 The tax effects of the application of IAS 29 and hyperinflation according to the rules in place in Turkey are cumulatively shown in the column "Hyperinflation". The impact on deferred taxes of the Turkish tax reform - effective in 2027 - was recognised at 30 June 2026 (note 33).

Sabaf Group | 2026 Half -Yearly Report 46 Comments on key income statement items

23. REVENUE

In the first half of 2026, revenue from sales totalled €144.666 million, up by 1.2% compared to €143.000 million in the same period of the previous year. Please refer to the Interim Report on Operations for comments on the change in revenue.

Revenue by geographical area

Revenue H1 2026 % H1 2025 % % change

Europe (excluding

Turkey) 44,992 31.0% 42,291 29.5% +6.4% Turkey 33,231 23.0% 33,698 23.6% -1.4% North America 31,838 22.0% 33,145 23.2% -3.9% South America 19,614 13.6% 18,418 12.9% +6.5% Africa and Middle East 5,449 3.8% 6,615 4.6% -17.6% Asia and Oceania 9,542 6.6% 8,833 6.2% +8.0% Total 144,666 100% 143,000 100% +1.2%

Revenue by product family

Revenue H1 2026 % H1 2025 % % change Gas parts 86,989 60.1% 84,584 59.2% +2.8% Hinges 46,290 32.0% 46,521 32.5% -0.5% Electronic components 11,387 7.9% 11,895 8.3% -4.3% Total 144,666 100% 143,000 100% +1.2%

24. OTHER INCOME

H1 2026 H1 2025 Change Sale of trimmings and raw materials 3,348 2,674 674 Contingent income 309 385 (76) Rental income 30 30 -

Release of risk provisions 285 26 259 Other income 2,119 2,320 (201) Total 6,091 5,435 656

Other income includes insurance compensation (€642 thousand), tax benefits for investments in capital goods and research and development (€529 thousand), Turkish government grants (€478 thousand) for the hiring of personnel, revenue from the sale of energy produced by photovoltaic plants (€49 thousand) and revenue from the sale of moulds and equipment (€26 thousand).

25. MATERIALS

H1 2026 H1 2025 Change Commodities and outsourced components 70,387 66,657 3,730 Consumables 5,237 5,219 18 Total 75,624 71,876 3,748

Sabaf Group | 2026 Half -Yearly Report 47 In the first half of 2026, costs for raw materials, components and consumables rose by 5% on the same period of the previously year, driven primarily by higher procurement volumes to ensure continuity of supply. The ratio of cost of sales (purchases net of inventory changes) to turnover remained broadly stable at 46.3% in the first half of 2026, compared to 45.6% in the same period of 2025.

During the first half of 2026, the Group successfully mitigated the impact of inflation on the cost of materials, thanks to its procurement strategy and fixed -price purchase contracts.

26. COSTS FOR SERVICES

H1 2026 H1 2025 Change Outsourced processing 5,725 6,133 (408) Natural gas and electricity 4,590 4,795 (205) Maintenance 4,426 3,986 440 Transport and export expenses 2,974 3,000 (26) Advisory services 1,116 1,151 (35) Insurance 739 695 44 Canteen 691 608 83 Directors’ fees 635 587 48 Commissions 504 848 (344) Travel expenses and allowances 392 466 (74) Waste disposal 343 372 (29) Use of temporary agency workers 70 159 (89) Other costs 3,750 3,510 240 Total 25,955 26,310 (355)

The main outsourced processing include hot moulding of brass and steel blanking as well as some mechanical processing and assembly. Other costs included expenses for the registration of patents, waste disposal, cleaning, leasing third -party assets and other minor charges.

27. PERSONNEL COSTS

H1 2026 H1 2025 Change Salaries and wages 26,556 25,152 1,404 Social Security costs 7,609 7,067 542 Post -employment benefits and supplementary pension 1,640 1,470 170 Temporary agency workers 1,303 2,691 (1,388) Stock grant plan (115) 389 (504) Other costs 365 334 31 Total 37,358 37,103 255

The Group headcount at 30 June 2026 was 1,814 employees compared to 1,782 at 30 June 2025.

The increase in personnel costs compared to the same period of the previous year is mainly due to the inflation trends of the period.

"Stock grant plan" of €115 thousand includes the fair value of the rights assigned to receive shares of the Parent Company relating to the 2024 – 2026 Stock grant plan for the period, decreasing personnel costs. For additional information, reference should be made to notes 13 and 38.

Sabaf Group | 2026 Half -Yearly Report 48 28. OTHER OPERATING COSTS H1 2026 H1 2025 Change Non -income related taxes and duties 319 329 (10) Contingent liabilities 210 171 39 Bad debt provision 174 11 163 Other operating costs 135 118 17 Membership fees 84 55 29 Accruals to provisions for risks and charges - 34 (34) Total 922 718 204

Non -income taxes chiefly relate to property tax.

29. FINANCIAL INCOME

H1 2026 H1 2025 Change Interest from bank current accounts 349 208 141 Interest from time deposit 146 100 46 Interest rate derivatives 17 3 14 Other financial income 24 30 (6) Total 536 341 195

Interest from time deposits of €146 thousand related to interest accrued on time deposit accounts opened by certain foreign subsidiaries; these are temporary investments of liquidity in excess of normal operations.

30. INCOME/EXPENSES FROM HYPERINFLATION

H1 2026 H1 2025 Change Income from hyperinflation 340 2,535 (2,195) Total 340 2,535 (2,195)

Since 2022, the effect of inflation accounting on the Turkish subsidiary has been recognised in the financial statements. During the period, this resulted in the recognition of income of €340 thousand. For an appropriate and detailed analysis, please refer to the specific paragraph in the Notes to these Financial Statements. The effects of applying IAS 29 to each item in the consolidated income statement are also shown in the annex to the Report on Operations.

31. FINANCIAL EXPENSES

H1 2026 H1 2025 Change MEC option valuation adjustment (note 15) 3,591 2,942 649 Interest paid to banks 1,355 1,291 64 Interest paid on leases and rents 154 156 (2) Banking expenses 119 129 (10) Other financial expense 248 214 34 Financial expenses 5,467 4,732 735 Other financial expense mainly includes interest expense related to the early transfer of trade receivables to factors .

Sabaf Group | 2026 Half -Yearly Report 49

32. EXCHANGE RATE GAINS AND LOSSES

In the first half of 2026, the Group recognised net exchange rate gains of €1,554 thousand (net gains of €1,351 thousand in the same period of 2025).

33. INCOME TAXES

H1 2026 H1 2025 Change Current taxes 3,296 1,199 2,097 Deferred tax liabilities 1,651 20 1,631 Total 4,947 1,219 3,728

The variation in income taxes is primarily attributable to the Turkish tax reform (introduced by Law no. 7582 and enacted on 4 June 2026), which introduces measures to boost the competitiveness of the country’s manufacturing sector. Specifically, starting from 2027, the reform establishes a 12.5% corporate income tax rate - down from the ordinary rate of 25% -

for companies engaged exclusively in manufacturing activities.

Consequently, the Group has remeasured its deferred taxes, recognising the effects of the new legislation in profit or loss, based on the information available at the reporting date.

34. EARNINGS PER SHARE

Basic and diluted EPS are calculated based on the following data:

Profit H1 2026 H1 2025

(€/000) (€/000)

Profit/(loss) for the period (937) 5,239

Number of shares H1 2026 H1 2025

Weighted average number of ordinary shares for determining basic earnings per share 12,338,740 12,471,329 Dilutive effect from potential ordinary shares 0 0 Weighted average number of ordinary shares for determining diluted earnings per share 12,338,740 12,471,329

H1 2026 H1 2025

Euro Euro

Basic earnings/(losses) per share (0.076) 0.420 Diluted earnings/(losses) per share (0.076) 0.420

The number of shares for measuring the earnings per share was calculated net of the average number of shares in the portfolio.

35. DIVIDENDS

On 27 May 2026, a dividend of €0.58 per share was paid to shareholders (total dividends of €7,144 thousand), implementing the resolution to allocate the 2025 profit approved by Sabaf S.p.A. shareholders in their meeting on 29 April 2026.

Sabaf Group | 2026 Half -Yearly Report 50 During the first half of the year, dividends totalling €860 thousand were paid to the non -

controlling investors of the US subsidiary, resulting in a corresponding decrease in equity attributable to non -controlling interests.

36. INFORMATION BY BUSINESS SEGMENT

Below is the information by business segment for the first half of 2026 and 2025.

First half of 2026

Gas parts

(household and

professional) Hinges Electronic

components Unallocated

revenues and

costs Total

Sales 86,353 46,061 11,202 1,050 144,666 Operating profit 7,369 5,912 (1,205) (4,121) 7,955

First half of 2025

Gas parts

(household and

professional) Hinges Electronic

components Unallocated

revenues and

costs Total

Sales 86,300 46,930 12,508 (2,738) 143,000 Operating profit 8,356 5,937 (474) (5,987) 7,832

37. RELATED PARTY TRANSACTIONS

Transactions between Sabaf S.p.A. and its consolidated subsidiaries have been eliminated from the consolidated financial statements and are not addressed in these notes. During the first half of 2026, as in the same period last year, no transactions were c arried out with other related parties.

38. SHARE -BASED PAYMENTS

2024 – 2026 Stock Grant Plan A plan for the free allocation of shares, approved by the Shareholders' Meeting of 8 May 2024, is in place. The related Regulations were approved by the Board of Directors on 18 June 2024.

The main features of this Plan are summarised below.

Aim The Plan aims to promote and pursue the involvement of the beneficiaries whose activities are considered relevant for the implementation of the content and the achievement of the objectives set out in the Business Plan, foster loyalty development and motiv ation of managers, by increasing their entrepreneurial approach as well as align the interests of management with those of the Company's shareholders more closely, with a view to promoting the sustainable success of the Company and the Group, achieve speci fic levels of growth and development, and the Group’s sustainable objectives.

Purpose

The purpose of the Plan is the free allocation to the Beneficiaries of a maximum of 270,000 Options, each of which entitles them to receive free of charge, under the terms and conditions

Sabaf Group | 2026 Half -Yearly Report 51 provided for by the Regulations of the relevant Plan, 1 Sabaf S.p.A. share.

The free allocation of Sabaf S.p.A. shares is conditional on the achievement, in whole or in part, with progressiveness, of the business targets related to the ROI and EBITDA and the social and environmental targets.

Beneficiaries

The Plan is intended for persons who hold or will hold key positions in the Company and/or its Subsidiaries, with reference to the implementation of the contents and the achievement of the objectives of the 2024 - 2026 Business Plan. A total of 263,000 Rig hts were allocated to the Beneficiaries already identified.

Deadline

The 2024 - 2026 Plan expires in 2027.

Accounting impacts and Fair Value measurement methods In connection with this Plan, lower personnel costs of €115 thousand (note 27) were recognised during the period, with a corresponding decrease in the balance of the related equity reserve (note 13).

In line with the date on which the beneficiaries became aware of the assignment of the rights and terms of the plan, the grant date was set at 1 July 2024.

The main assumptions made at the beginning of the vesting period and the methods for determining the fair value at the end of the reporting period are illustrated below. The following economic and financial parameters were taken into account in determining the fair value per share at the start of the vesting period:

Share price on grant date adjusted for dividends €16.60 Dividend yield 2.90% Expected volatility per year 31.30% Interest rate per year 3.10%

Based on the exercise right at the different dates established by the Plan Regulations and on the estimate of the expected probability of achieving the objectives for each reference period, the unitary fair value at 30 June 2026 was determined as follows:

Rights relating to objectives measured on ROI Total value on ROI -

Fair Value -

Rights on ROI 35%

Rights relating to objectives measured on EBITDA Total value on EBITDA 6.33 Fair Value 2.85 Rights on EBITDA 45%

Rights relating to ESG objectives measured on personnel training Total value on "Personnel

training" 14.02

Fair Value 0.70 Rights on "Personnel training" . 5%

Rights relating to ESG objectives measured on safety indicator Total value on "Safety

indicator” 10.17

Fair Value 0.51 Rights on "Safety indicator” 5%

Sabaf Group | 2026 Half -Yearly Report 52 Rights relating to ESG objectives measured on reduction of emissions. Total value on "Reduction of

emissions” 13.73

Fair Value 1.37 Rights on "Reduction of

emissions” 10%

Fair value per share 5.43

39. SIGNIFICANT NON -RECURRING EVENTS AND TRANSACTIONS

Pursuant to Consob communication of 28 July 2006, the Group declares that no significant non -

recurring transactions as defined by the Consob communication itself were carried out during the first half of 2026.

40. SIGNIFICANT EVENTS AFTER THE END OF THE FIRST HALF -YEAR

There were no important events after the end of the first -half of 2026.

41. ATYPICAL AND/OR UNUSUAL TRANSACTIONS

Pursuant to Consob communication of 28 July 2006, the Group declares that no atypical and/or unusual transactions as defined by the Consob communication itself were carried out during the first half of 2026.

42. COMMITMENTS

Guarantees issued

The Sabaf Group has issued sureties to guarantee consumer and mortgage loans granted by banks to group employees for a total of €1,787 thousand.

Sabaf Group | 2026 Half -Yearly Report 53 SCOPE OF CONSOLIDATION AT 30 June 2026

COMPANIES CONSOLIDATED USING THE FULL LINE -BY-LINE CONSOLIDATION METHOD

Company name Registered offices Share capital Shareholders %

ownership

Faringosi Hinges S.r.l. Ospitaletto (BS) EUR 90,000 Sabaf S.p.A. 100% Sabaf do Brasil Ltda Jundiaì - São Paulo

(Brazil) BRL

53,348,061 Sabaf S.p.A. 100% Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited Sirketi (Sabaf Turkey) Manisa (Turkey) TRY 1,306,029,421 Sabaf S.p.A. 100% Sabaf Appliance Components Ltd. Kunshan (China) CNY 78,062,950 Sabaf S.p.A. 100% Sabaf India Private Limited Bangalore (India) INR 311,666,338 Sabaf S.p.A. 100% A.R.C. S.r.l. Campodarsego

(PD) EUR

45,000 Sabaf S.p.A. 100% Sabaf Mexico Appliance Components San Louis Potosì

(Mexico) MXN

141 ,003 ,832 Sabaf S.p.A. 100% C.M.I. Cerniere Meccaniche Industriali s.r.l. Valsamoggia (BO) EUR 1,000,000 Sabaf S.p.A. 100% C.G.D. S.r.l. Valsamoggia (BO) EUR 26,000 C.M.I. s.r.l. 100% P.G.A S.r.l. Fabriano (AN) EUR 100,000 Sabaf S.p.A. 100% Sabaf America Inc. Delaware (USA) USD 4,000 ,000 Sabaf S.p.A. 100%

Mansfield Engineered

Components LLC (MEC) Mansfield (USA) USD 2,823,248 Sabaf America 51%

Sabaf Group | 2026 Half -Yearly Report 54 Certification of the Condensed Consolidated Interim Financial Statements pursuant to Article 154 -bis of Legislative Decree no. 58/98

The undersigned Gianluca Beschi as Chief Executive Officer and Financial Reporting Officer of Sabaf S.p.A., have taken into account the requirements of Article 154 -bis, paragraph 3 and 4, of Legislative Decree 58 of 24 February 1998 and can certify:

• the adequacy, in relation to the business characteristics and • the actual application

of the administrative and accounting procedures to draft the condensed consolidated interim financial statements in the first half of 2026.

They also certify that:

• the condensed consolidated interim financial statements:

- have been prepared in accordance with the international financial reporting standards endorsed by the EU in accordance with EC regulation 1606/2002 of the European Parliament and Council, of 19

July 2002;

- are consistent with accounting books and records;

- provide a true and fair view of the operating results, financial position and cash flows of the issuer and of the companies included in the

consolidation;

• the interim report on operations includes a reliable analysis of the important events that occurred in the first six months of the year and their impact on the condensed consolidated interim financial statements, along with a description of the main risks and uncertainties for the six remaining months of the year.

The interim report on operations also contains a reliable analysis of the information on significant transactions with related parties.

Ospitaletto, 08 September 2026

CEO and Financial Reporting

Officer

Gianluca Beschi

Sabaf S.p.A.

Half-yearly condensed consolidated financial statements as of 30 June 2026 Review report on the half-yearly condensed consolidated

financial statements

(Translation from the original Italian text)

EY S.p.A.

Via Rodolfo Vantini, 38 25126 BresciaTel: +39 030 2896111 | +39 030 226326

ey.com

EY S.p.A.

Sede Legale: Via Meravigli, 12 – 20123 Milano Sede Secondaria: Via Lombardia, 31 – 00187 Roma Capitale Sociale Euro 3.000.000 i.v.

Iscritta alla S.O. del Registro delle Imprese presso la CCIAA di Milano Monza Brianza Lodi Codice fiscale e numero di iscrizione 00434000584 - numero R.E.A. di Milano 606158 - P.IVA 00891231003 Iscritta al Registro Revisori Legali al n. 70945 Pubblicato sulla G.U. Suppl. 13 - IV Serie Speciale del 17/2/1998 A member firm of Ernst & Young Global LimitedReview report on the half-yearly condensed consolidated financial

statements

(Translation from the original Italian text) To the Shareholders of Sabaf S.p.A.

Introduction

We have reviewed the half-yearly condensed consolidated financial statements, comprising the consolidated statement of financial position, the consolidated income statement, the consolidated statement of comprehensive income, the statement of changes in consolidated shareholders’ equity, the consolidated statement of cash flows and the related explanatory notes of Sabaf S.p.A. and its subsidiaries (the “Sabaf Group”) as of 30 June 2026. The Directors of Sabaf S.p.A. are responsible for the preparation of the half-yearly condensed consolidated financial statements in conformity with the International Financial Reporting Standard applicable to 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 these half-yearly condensed consolidated financial statements based on our review.

Scope of Review We conducted our review in accordance with the criteria recommended by Consob for the review of the half-yearly financial statements under Resolution no. 10867 of 31 July 1997. A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion on the half-yearly condensed consolidated financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the half-yearly condensed consolidated financial statements of Sabaf Group as of 30 June 2026 are not prepared, in all material respects, in conformity with the International Financial Reporting Standard applicable to interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union.

Brescia, 10 September 2026 EY S.p.A.

Signed by: Marco Malaguti, Auditor This report has been translated into the English language solely for the convenience of international

readers