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Half-Year Financial Report at June 30, 202 6
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Contents
1. CORPORATE BOARDS ................................ ................................ ................................ .... 3
2. THE GROUP AND ITS OPERATIONS ................................ ................................ ................ 4
3. DIRECTORS’ REPORT ................................ ................................ ................................ ....... 6 Market overview ................................ ................................ ................................ ................................ .............................. 6 Group market overview ................................ ................................ ................................ ................................ ................ 7 Research and Development and Technological Innovation ................................ ................................ ............ 7 First-half operating performance ................................ ................................ ................................ ................................ 9 Alternative performance measures ................................ ................................ ................................ ........................... 9 SECO on the stock exchange ................................ ................................ ................................ ................................ ... 11 Outlook ................................ ................................ ................................ ................................ ................................ ............ 12 Risks and uncertainties ................................ ................................ ................................ ................................ ................. 12
4. CONDENSED CONSOLIDATED HALF -YEAR FINANCIAL STATEMENTS AT JUNE 30, 2026
13 Consolidated Balance Sheet ................................ ................................ ................................ ................................ .... 13 Consolidated Income Statement ................................ ................................ ................................ ............................. 14 Consolidated Comprehensive Income Statement ................................ ................................ ............................. 15 Consolidated Cash Flow Statement ................................ ................................ ................................ ........................ 16 Consolidated Statement of changes in Equity ................................ ................................ ................................ ..... 17
5. NOTES TO THE CONDENSED CONSOLIDATED HALF -YEAR FINANCIAL STATEMENTS AT
JUNE 30, 2026 ................................ ................................ ................................ ....................... 19 Accounting standards and basis of preparation ................................ ................................ ................................ . 19 Notes to the Balance Sheet ................................ ................................ ................................ ................................ ....... 43 Notes to the income statement ................................ ................................ ................................ ................................ 53 Related party transactions ................................ ................................ ................................ ................................ ......... 57 Remuneration of Directors, Statutory Auditors and independent audit firm ................................ ............... 61 Subsequent events ................................ ................................ ................................ ................................ ....................... 61
6. DECLARATION OF THE HALF -YEAR FINANCIAL REPORT PURSUANT TO ARTICLE 81 -TER
OF CONSOB REGULATION NO. 11971 OF MAY 14, 1999 AND SUBSEQUENT AMENDMENTS
AND SUPPLEMENTS ................................ ................................ ................................ ............... 62
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1. CORPORATE BOARDS
Board of Directors Office held until the approval of the 2026 annual accounts Chairperson Daniele Conti Chief Executive Officer Massimo Mauri Directors Michele Secciani
Claudio Catania
Luciano Lomarini
Kurt Tosja Zywietz
Valentina Montanari
Anna Zattoni
Valentina Beatrice Manfredi
Paolo Lavatelli
Board of Statutory Auditors Office held until the approval of the 2026 annual accounts Statutory Auditors Cesare Beolchi (Chairperson)
Pierpaolo Guzzo
Micaela Badiali
Alternate Auditors Prospero Accogli
Edda Delon
Executive Officer for Financial Reporting Lorenzo Mazzini
Independent Audit Firm Deloitte & Touche S.p.A.
Office held until the approval of the 2029 annual accounts
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2. THE GROUP AND ITS OPERATIONS
The SECO Group (hereinafter also referred to as the "Group" or "SECO") consists of the parent company SECO S.p.A., hereinafter also referred to as the "Company" or "Parent Company", and its subsidiaries, as presented below:
The Company's registered office is located in Arezzo (AR), via Achille Grandi 20.
SECO is a high -tech Group that develops and delivers cutting -edge solutions for the digitization of industrial products and processes. SECO's hardware and software offerings enable B2B enterprises to introduce edge computing, Internet of Things, data analy tics and artificial intelligence into their businesses. Within a quickly and broadly evolving marketplace, SECO’s technologies encompass many fields of application, with innovative and customized solutions provided to its more than 450 customers, in sector s such as the Medical, Industrial Automation, Fitness, Vending and Transportation areas, in addition to many others.
5 During the year (effective June 23, 2026), the Group company formerly known as “SECO Mind S.r.l.” adopted the new name “CLEA S.r.l. This change - which was purely formal in nature - did not alter the company’s legal form and ownership structure, nor the ho lding of the company’s legal, economic and financial relationships.
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3. DIRECTORS’ REPORT
Market overview
Global monetary policy in the period was generally stable compared to the second half of 2025. In the initial months of the year, inflation in Europe remained essentially stable, although began to be impacted - particularly from March - by the general rise in fossil fuels prices as a result of the conflict between the U.S., Israel and Iran. Against this backdrop, the major central banks adopted a mostly cautious outlook, with interest rates not changing substantially.
The trade and geopolitical environment did not alter significantly during the period, while in 2025 had been affected by the international tensions - although with limited impact on the demand for the Group’s edge computing solutions.
In 2026, on the currency market, subsequent to its weakening in the second quarter of 2025 the U.S.
Dollar has begun to stabilize. For companies that prepare their financial statements in Euro and generate a significant portion of their revenue in U.S Doll ars, a weakening of the Dollar against the Euro has (with all other conditions remaining equal) a negative impact when revenue and income recognized in Dollars are converted into Euro.
Geopolitical tensions and fluctuations in commodity prices affect the supply of certain component categories. In the electronic components market, the prices and lead times of memories used in B2C and B2B applications have significantly and generally risen : this mainly owes to the sustained increase in global demand for memories for the building of data centers for artificial intelligence applications.
On the same basis, the prices and lead times of all major product categories, including CPUs and integrate d circuits, have generally risen (although to a more contained degree).
Within this environment, the Edge Computing segment continues to constitute a key element for technological innovation: the digitalization of devices and processes in fact may significantly contribute to boosting productivity and industrial efficiency, whi ch are essential elements not only for companies’ competitiveness, but also their very survival.
Business process digital transformation is enabled by adopting smart solutions that integrate hardware and software components, facilitating the establishment of new business models and the creation of further development opportunities. The increasingly wi despread adoption of digital technologies is extending also to traditionally more analogue segments: many companies are investing to improve the user experience and functionality of their products, adapting them to an increasingly interconnected and cuttin g-edge environment.
Against this backdrop, the main sector growth trends center on factors such as: the development of increasingly innovative technologies for Edge computing and embedded and physical AI, linked to the integration of energy -efficient microcontrollers capable of supporting AI features and of interacting autonomously with their surroundings, the growing interest in hardware and firmware security, against increasing cyber threats, through the development guidelines for embedded cybersecurity technologies, the exp ansion of IoT technologies, through the spread of real -time operative open source systems and the direct connection of intelligent devices in the industrial area. The integration of IoT -
data analytics and artificial intelligence solutions within edge comp uting devices is also likely to accelerate the launch of new high value -added services and an evolution in the way that businesses deal with the creation, delivery and use of ICT products and services.
7 In addition, digitization can play a key role within a landscape in which climate change and raw material and energy supply issues make it increasingly necessary to adopt solutions that can accelerate the energy transition. In particular, by enabling the l ocal execution of increasingly complex computational models, tools can be developed through Edge AI that can increasingly monitor and optimize the power consumption of industrial and home -use devices.
Group market overview In terms of market dynamics, edge computing and IoT solutions demand among operators within the Group’s various verticals was strong in the period.
The high demand for electronic components, particularly memories, to build data centers for artificial intelligence applications has also prompted a significant increase in lead times and market prices for these product categories. These dynamics are refle cted in SECO’s availability of components and have led to the need to renegotiate prices and delivery times with Group customers, in addition to deliveries from suppliers.
New Edge computing product development continues, particularly on modular Human Machine Interface (HMI) and System on Module (SOM) systems, alongside the new features in the Clea software suite. Clea represents a further development of SECO’s strategy to l everage over 40 years of Edge computing know -how, with the goal of increasing value for customers, through the offer of end -to-end, integrated, customizable solutions based on micro -computing, human -machine interfaces and software platforms.
Also through long -term partnerships with the major silicon vendors, SECO has always committed to innovating its hardware proposal (e.g. with the launch of new dedicated Edge AI and Computer vision products), while continuing to work closely with its custom ers, supporting them through the digital evolution of their devices.
Globally, as a result of growing demand from OEMs (Original Equipment Manufacturers) and developers, the adoption of smart and connected edge computing solutions has accelerated in high -
potential sectors such as medicine, e -mobility, smart retail and energ y infrastructure, with the integration of distributed computing capabilities, secure connectivity and artificial intelligence at the edge level supporting significant boosts in operational efficiency and real -time analytics capabilities.
Against this backdrop, Group sales in the period were stable on the previous year.
Research and Development and Technological Innovation SECO again in the period under review remained strongly committed to ensuring high levels of innovation, integration and added value in the solutions built according to the needs of customers operating in multiple verticals.
SECO’s main objective is to anticipate the needs of its customers, utilizing frontier technologies and supporting them in the digital transition of their business, while adding value to their solutions.
The constant push for innovation by all the players in a given sector can quickly render a competitive advantage obsolete. As such, every year SECO dedicates significant resources to Research and Development, which concerned the development of new products and of off -the-shelf solutions to be
8 sold on the market, in addition to the co -development and co -engineering of customized products, working hand -in-hand with the customer.
The SECO Group R&D departments are responsible for developing and designing technological solutions based on integrated systems, standard and custom solution modules and IoT and AI software solutions for SECO's customers and target markets. Research and de velopment is a key aspect of SECO's business model and is carried out both in -house and through partnerships with world -class technology enterprises and research institutes and university hubs worldwide.
The technological development in which SECO has invested in recent years has positioned the Group as a leading player in combined hardware -software provision. The technological challenge that the Group is taking on is that of developing high -performance ha rdware, with a particular emphasis on strengthening edge computing capacity by creating new products able to run inference models locally, taking advantage of edge processing capacity directly and creating an optimal integration of hardware and the CLEA so ftware platform.
Our strong partnerships with the primary technology leaders in the electronics industry enable the Group to implement our technology strategy by gaining early access to some of the most cutting -edge technologies being developed. The product research and de velopment activities, central and strategic to the Group's business model, are focused on making the adoption of the most advanced hardware and software technologies more accessible and secure for users and the actors of SECO's industrial ecosystem.
Major hardware developments during the period concerned the expansion of the catalog of off -the-
shelf products by integrating AI accelerators developed by leading silicon vendors to develop high -
capacity industrial applications. The development of modular HMI (Human Machine Interface) solutions also continued in the period, with new products released in both ARM and x86 segments and scalable proposals from 7'' to 15'' for rapid adoption in multiple segments of industrial automation and process control.
On the software development side, the release of new features of the CLEA platform has a similar focus, with the goal of optimizing the use of the acceleration potential and computational capabilities of hardware devices, while also making available to pla tform users a no -code infrastructure for the creation of data analytics models and applications developed and trained using proprietary data.
9 First-half o perating performance The Group for the first half of 2026 reports substantially stable edge computing and IoT solutions revenues. The Group in the period continued to benefit from the maintenance of close relationships with customers and its consolidated technology leadership strategy, with varying impacts among the regions in which they operate. Sales revenues were stable on the same period of the previous year, increasing 0.32%.
The Group continued to invest in maintaining its industry leadership and on strengthening its strategic position - both in terms of technology and the market. This is particularly delivered by expanding the workforce, hiring new key personnel - especially in the areas of R&D, production and sales - in addition to the investments in technological development. The period’s results also benefited from the company’s ongoing focus on streamlining operating costs, and particularly the lower outsourcing costs and commissions on the previous year. Personnel costs rose due to the expansion of the workforce at Group level in support of the development plan.
Alternative performance measures The following tables present the operating and financial measures used by the Group to monitor performance, in addition to the measurement methods.
In order to better understand the Group’s operating and financial performance, the Directors have identified a number of alternative performance measures (“APM” or “Alternative Performance Measures”).
The following table presents the key alternative performance measures for the operating results and
balance sheet:
(In Euro thousands) 2026 2025 Change Change %
EBITDA 15,606 15,934 (328) -2.06%
Adjusted EBITDA 18,485 20,132 (1,647) -8.18% Net financial debt (58,513) (47,250) (11,263) 23.84% Adjusted net financial debt (47,697) (37,599) (10,098) 26.86% (*) The table presents the “EBITDA” and “Adjusted EBITDA” operating results for the first half of 2026, compared with H1 2025 , in addition to the “Net financial debt” and “Adjusted net financial debt” financial results as of June 30, 2026, compared with December 31, 2025.
EBITDA - This measure is used by the Group as a financial target and is useful for assessing operating performance. EBITDA is calculated as profit or loss for the period before income taxes, financial income and charges, and amortization and depreciation.
(In Euro thousands) 30/06/2026 30/06/2025 Change Change % Total revenues and operating income 99,829 99,722 107 0.11% Costs for services, goods and other operating costs (*) (60,524) (62,036) 1,512 -2.44% Personnel costs (23,699) (21,752) (1,947) 8.95%
EBITDA 15,606 15,934 (328) -2.06%
(*) Costs for services, goods and other operating costs include the following income statement items: costs of raw, ancillary , consumable materials and goods; changes to inventory; service costs; the doubtful debt provision and provisions for risks and charges; other operating costs; exchange gains and losses.
10 The decrease in this indicator between the two periods (Euro -328 thousand, -2.06%) was due to: the increase in revenues and operating income (Euro 107 thousand, 0.11%), the decrease in costs for services, goods and other costs (Euro 1,512 thousand, -2.44% ) and the increase in personnel costs (Euro 1,947 thousand, 8.95%).
Adjusted EBITDA - Adjusted EBITDA is a measure to assess the Group’s operating performance. Adjusted EBITDA is calculated as the profit before income taxes, financial charges and income, amortization and depreciation, exchange gains or losses, extraordinary/non -recurring expenses.
With regards to Adjusted EBITDA, the Group considers that the adjustment (which defines Adjusted EBITDA) was made to represent the Group’s operating performance, net of effects of a number of events and transactions.
(In Euro thousands) 30/06/2026 30/06/2025 Change Change %
EBITDA 15,606 15,934 (328) -2.06%
Exchange gains/(losses) 561 931 (369) -39.67% Income/charges from non -core business activities 2,151 3,259 (1,108) -34.00% Non-recurring income/charges from core business activities 167 8 159 1994.06% Adjusted EBITDA 18,485 20,132 (1,647) -8.18%
The Group reports H1 2026 Adjusted EBITDA of Euro 18,485 thousand, decreasing 8.18% on H1 2025.
Income/charges from non -core business activities of Euro 2,151 thousand mainly refer:
- To the allocation of stock options to managers and directors for Euro 1,908 thousand (Euro 3,233 thousand in H1 2025);
- To consultancy costs related to possible corporate transactions for Euro 88 thousand (Euro 23 thousand in H1 2025);
- To costs incurred in connection with the departure of employees from Group companies totaling Euro 109 thousand;
- To tax audits regarding local property taxes (IMU) totaling Euro 28 thousand;
- To settlement agreements with suppliers totaling Euro 18 thousand.
Income falling within the core business activities that are non -recurring, amounting to Euro 167 thousand, refer to: the impairment of receivables totaling Euro 75 thousand and refunds to customers totaling Euro 92 thousand.
Net financial debt - This measure indicates the Group’s financial debt, net of cash and cash equivalents.
The breakdown of the net financial debt at June 30, 202 6 compared with December 31, 202 5 is presented on the following page, determined in accordance with "Reminder No. 5/21" dated April 29, 2021 issued by Consob, which refers to ESMA Guideline 32 -382-1138 dated March 4, 2021.
At June 30, 2026, the Group net financial debt was Euro 58,513 thousand, compared to Euro 47,250 thousand at December 31, 2025.
(In Euro thousands) 30/06/2026 31/12/2025 Change Change % A. Cash 13 14 (0) -1.96% B. Cash equivalents 60,542 66,643 (6,101) -9.15% C. Other current financial assets 1,164 2,030 (866) -42.66% D. Cash and cash equivalents (A) + (B) + (C) 61,720 68,687 (6,967) -10.14% E. Current financial debt (10,953) (7,089) (3,864) 54.51% F. Current portion of the non -current debt (14,160) (10,305) (3,854) 37.40%
11 G. Current financial debt (E)+(F) (25,112) (17,394) (7,718) 44.37% H. Net current financial debt (G) + (D) 36,607 51,293 (14,685) -28.63% I. Non -current financial debt (95,120) (98,543) 3,422 -3.47% J. Debt instruments - - - 0.00% K. Trade payables and other non -current payables - - - 0.00% L. Non -current financial debt (I) + (J) + (K) (95,120) (98,543) 3,422 -3.47% M. Total financial debt (H) + (L) (58,513) (47,250) (11,263) 23.84%
The net financial debt increased overall by Euro 11,263 thousand compared to December 31, 2025. This increase is primarily attributable to changes in the main working capital items during the period. The main increase was in Inventories due to longer proc urement lead times, particularly for memory products.
Adjusted net financial debt The Adjusted net financial debt is obtained by adjusting the Net financial debt calculated according to the "Reminder No. 5/21" dated April 29, 2021 issued by Consob, which refers to ESMA Guideline 32 -
382-1138 dated March 4, 2021, with the VAT receivable, the current and non -current financial receivables deriving from leases and recognized under IFRS 16 and the effect of the recognition of the MTM of the derivatives where liabilities.
(In Euro thousands) 30/06/2026 31/12/2025 Change Change % Net financial debt (58,513) (47,250) (11,263) 23.84% (+) VAT receivables 3,460 1,222 2,238 183.15% (-) Current lease liabilities (2,414) (2,393) (20) 0.84% (-) Non-current lease liabilities (4,942) (6,035) 1,094 -18.12% (-) Derivative financial instruments - - - 0.00% Adjusted net financial debt (47,697) (37,599) (10,098) 26.86% (*) At June 30, 2026, the Mark to Market of derivatives was a positive Euro 4,729 thousand, compared to a positive Euro 5,035 thousand at December 31, 2025. These active derivatives are classified as non -current financial assets which are not included in t he components to be considered when determining net financial debt, as per Consob Communication in accordance with ESMA recommendations 2022/32/382/1138, and they are therefore not included in the calculation of Adjusted net financial debt.
The Adjusted net financial debt was Euro 47,697 thousand at June 30, 2026, compared to Euro 37,599 thousand at December 31, 2025. The increase in the period is primarily attributable to the factors outlined in the previous paragraph.
SECO on the stock exchange SECO S.p.A. shares are traded on the Milan Euronext Star market organized and managed by Borsa Italiana S.p.A. At June 30, 2026, the SECO S.p.A. (IOT:MI) stock price was Euro 3.245, with a capitalization therefore of Euro 431.7 million. This capitalization is higher than the Group equity of Euro 274.6 million.
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Outlook
In light of the sector dynamics outlined previously, the demand for the Group’s technology solutions is driven by the increasing digitization of physical devices and processes through edge computing, hardware and software solutions. Against this backdrop, SECO is continuing to acquire new design wins and customers, strengthening the foundation for our future development.
Starting from early 2026, tensions on memory prices and supply are observed , mainly due to the sustained increase in global demand for memory to build data centers for artificial intelligence applications. The impacts of such tensions represent an element of uncertainty for the sector and an additional challenge for the Group, as the effects are currently unquantifiable in terms of both scope and duration. The measures introduced across the supply chain since the first half of the year to combat the phenomenon indicated above are beginning to have an impact.
A digital revolution is underway in the market, where digitization and the use of Artificial Intelligence algorithms "at the Edge" assume a key role for the future technological development of enterprises. The growing demand for smart solutions increasingl y concerns the introduction of Artificial Intelligence, directly on the device locally, to enable the launch of new high value -added services, leveraging field data and introducing new business models. SECO's comprehensive and integrated technology proposi tion focused on Edge computing and IoT -data analytics is designed to meet these needs and enable customers to tap into the digitization opportunities emerging across all sectors. In this context, SECO has evolved its offerings over time, building the valu e proposition to meet the evolving needs of customers within the increasingly broad range of verticals served. The recently announced agreement with Neura Robotics also supports this approach, opening up a new and promising business vertical. The Company’s competitive positioning has also gradually shifted: Seco positions itself today as a solution company focused on generating value for the customer through integrated hardware, HMI and software -AI solutions.
The Company’s ecosystem - hardware, Clea and the Application Hub - is a unique differentiator for OEMs engaged in the digital transformation, as enabling the scalable deployment of AI solutions, accelerating time to market and supporting compliance with the new cybersecurity regulations. This business model should lay the foundation for making the most of the sector's growth trend over the mediu m term.
Against this volatile macroeconomic backdrop - although amid promising signs of development - SECO maintains a consistent focus on the efficient management of its financial structure to respond in an agile and prompt manner to the challenges and market unc ertainties.
Risks and uncertainties For a review of the main risks and uncertainties to which the Group is exposed, reference should be made to the detailed discussion in the Directors’ Report to the consolidated financial statements as of December 31, 2025.
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4. CONDENSED CONSOLIDATED HALF -YEAR
FINANCIAL STATEMENTS AT JUNE 30, 2026
Consolidated Balance Sheet (In Euro thousands) Note 30/06/2026 of which
Related
Parties 31/12/2025 of which
Related
Parties
Property, plants and equipment 1 24,429 - 22,593 -
Intangible assets 2 103,004 - 101,297 -
Right -of-Use 3 7,794 - 8,952 -
Goodwill 4 157,108 - 157,108 -
Non-current financial assets 5 6,625 1,518 6,842 1,496 Deferred tax assets 6 2,472 - 2,506 -
Other non -current assets 7 1,993 - 1,669 -
Total non -current assets 303,424 1,518 300,967 65 Inventories 8 82,427 - 64,618 -
Trade receivables 9 51,373 4,921 40,399 4,720 Current tax assets 10 7,764 - 6,020 -
Current financial assets 11 1,164 - 2,030 -
Other receivables 12 6,285 589 5,393 510 Cash and cash equivalents 13 60,556 - 66,657 -
Total current assets 209,570 5,510 185,116 5,230
TOTAL ASSETS 512,994 7,029 486,083 5,295
Share capital 14 1,296 - 1,296 -
Share premium reserve 14 232,036 - 232,036 -
Reserves 14 41,669 - 42,084 -
Group Net Profit (365) - (2,694) -
Total Group Equity 14 274,636 - 272,722 -
Minorities Equity and Reserves 22,948 - 18,553 -
Minorities profit for the period 2,082 - 3,190 -
Minorities Equity 25,030 - 21,743 -
Total Equity 14 299,666 - 294,465 -
Employee benefits 15 3,664 142 3,470 104 Provisions for risks 16 1,219 - 1,209 -
Deferred tax liabilities 17 23,115 - 23,772 -
Non-current financial liabilities 18 90,178 - 92,507 -
Non-current lease liabilities 19 4,942 - 6,035 -
Other non -current liabilities 20 8 - 8 -
Total non -current liabilities 123,126 142 127,002 104 Current financial liabilities 21 8,539 - 4,695 -
Current part of N -C financial liabilities 22 14,160 - 10,305 -
Current lease liabilities 23 2,414 - 2,393 -
Trade payables 24 50,736 106 34,883 121 Other payables 25 10,878 78 10,105 121 Current tax liabilities 26 3,475 - 2,234 -
Total current liabilities 90,202 183 64,616 243
TOTAL EQUITY AND LIABILITIES 512,994 325 486,083 347
14 Consolidated Income Statement (In Euro thousands) Note 30/06/2026 of which
Related
Parties 30/06/2025 of which
Related
Parties
Net sales 27 98,719 1,134 98,401 1,165 Other revenues and income 28 1,109 - 1,321 2 Raw materials, ancillaries, consumables and goods 29 (62,743) (5) (46,399) -
Change in inventories 17,502 - 504 -
Service costs 30 (12,133) (111) (12,478) (20) Personnel costs 31 (23,699) - (21,752) -
Amortization, depreciation and write -downs 32 (11,915) - (11,131) -
Doubtful debt provision and provisions for risks 33 (10) - (10) -
Other operating costs 34 (2,579) (1,352) (2,722) (1,894) Operating Profit 4,252 (334) 5,734 (747) Financial income 35 1,219 - 1,801 -
Financial charges 35 (2,596) - (3,272) -
Exchange gains/(losses) (561) - (931) -
Profit before tax 2,314 (334) 3,332 (747) Income taxes 36 (597) - (873) -
Net profit for the period 1,717 (334) 2,459 (747) Non-controlling interests profit 2,082 - 2,120 -
Group profit (365) (334) 339 (747) Basic earnings per share 37 0.00 0.00 0.00 0.00 Diluted earnings per share 38 0.00 0.00 0.00 0.00
15 Consolidated Comprehensive Income Statement (In Euro thousands) Note 30/06/2026 30/06/2025 Net profit for the period 1,717 2,459 Other comprehensive income/(expense) which may be subsequently reclassified to the income statement: 1,580 (3,494) Translation differences 1,813 (2,409) Gain/(loss) on Cash Flow Hedge (307) (1,427) Tax effect profit / (loss) on cash flow hedge 74 342 Other comprehensive income/(expense) which may not be subsequently reclassified to the income statement: 0 0 Discounting employee benefits 0 0 Tax effect discounting employee benefits 0 0 Total comprehensive income 39 1,580 (3,494) Non-controlling interests 3,287 478 Parent company shareholders 10 (1,512) Total comprehensive income/(loss) for the period 3,297 (1,035)
16 Consolidated Cash Flow Statement (In Euro thousands) Note 30/06/2026 30/06/2025 Net profit for the period 1,717 2,459 Income taxes 36 597 873 Amortization, depreciation and write -downs 32 11,915 11,131 Change in employee benefits 194 (195) Financial income/(charges) 35 1,377 1,471 Exchange gains/(losses) 561 931 Costs for share -based payments 1,911 3,234 Other non -monetary revenues and income (7) 124 Cash flow before working capital changes 18,265 20,028 Change in trade receivables 9 (10,771) (15,538) Change in inventories 8 (17,809) 68 Change in trade payables 24 14,701 5,781 Other changes in tax receivables and payables (1,278) 704 Other changes in current receivables and payables (85) (1,066) Other changes in non -current receivables and payables (874) (604) Use of provisions for risks, receivables and inventories 10 (54) Interest collected 1,184 1,801 Interest paid (2,518) (3,135) Exchange gains/(losses) realized 388 (1,273) Income taxes paid 36 178 (2,129) Cash flow from operating activities (A) 1,391 4,583 (Investments) /Disposals of property, plant and equipment 1 (3,932) (1,106) (Investments) /Disposals of intangible assets 2 (10,266) (6,644) (Investments) /Disposals of financial assets 5 (89) 160 Acquisition of business units net of cash and cash equivalents - -
Acquisition of subsidiaries net of cash and cash equivalents - -
Cash flow from investing activities (B) (14,286) (7,590) New loan drawdowns 6,485 -
(Repayment) of bank loans (4,959) (4,964) Change in current financial liabilities 21 3,766 (4,238) Repayment lease liabilities 23 (1,176) (2,037) Change in current financial assets 866 -
Dividends paid - (61) Paid -in capital increase - -
Acquisition of treasury shares - -
Acquisition of shares from minorities - -
Cash flows from financing activities (C) 4,981 (11,299) Increase (decrease) in cash and cash equivalents (A+B+C) (7,914) (14,305) Cash & cash equivalents at beginning of the period 66,657 72,586 Conversion differences 1,813 (2,409) Cash & cash equivalents at end of the period 60,556 55,872
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Consolidated Statement of changes in Equity (In Euro thousands) 01/01/2026 Share capital
increase Allocation
result Dividends
paid Other
movements Comprehensi
ve
Profit/(Loss) 30/06/2026
Share capital 1,297 0 0 0 0 0 1,297 Legal reserve 289 0 0 0 0 0 289 Share premium reserve 232,035 0 0 0 0 0 232,035 Other reserves 42,059 0 (2,694) 0 1,904 (233) 41,036 Translation reserve (191) 0 0 0 0 608 417 FTA Reserve (371) 0 0 0 0 0 (371) Discounting employee benefits 298 0 0 0 0 0 298 Group Net Profit (2,694) 0 2,694 0 0 (365) (365) Group Equity 272,722 0 0 0 1,904 10 274,636 Minorities Equity and Reserves 18,552 0 3,190 0 0 1,205 22,947 Discounting employee benefits 0 0 0 0 0 0 0 Non-controlling interests profit 3,191 0 (3,190) 0 0 2,082 2,083 Minorities Equity 21,743 0 0 0 0 3,287 25,030 Total Equity 294,465 0 0 0 1,904 3,297 299,666
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(In Euro thousands) 01/01/2025 Share capital
increase Allocation
result Dividends
paid Other
movements Comprehensi
ve
Profit/(Loss) 30/06/2025
Share capital 1,297 0 0 0 0 0 1,297 Legal reserve 289 0 0 0 0 0 289 Share premium reserve 232,035 0 0 0 0 0 232,035 Other reserves 59,119 0 (21,034) 0 3,300 (1,085) 40,300 Translation reserve 382 0 0 0 0 (767) (385) FTA Reserve (371) 0 0 0 0 0 (371) Discounting employee benefits 189 0 0 0 0 0 189 Group Net Profit (21,034) 0 21,034 0 0 339 339 Group Equity 271,908 0 0 0 3,300 (1,513) 273,695 Minorities Equity and Reserves 16,452 0 3,371 0 (3) (1,642) 18,178 Discounting employee benefits 0 0 0 0 0 0 0 Non-controlling interests profit 3,372 0 (3,371) 0 0 2,120 2,121 Minorities Equity 19,824 0 0 0 (3) 478 20,299 Total Equity 291,732 0 0 0 3,297 (1,035) 293,994
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5. NOTES TO THE CONDENSED
CONSOLIDATED HALF -YEAR FINANCIAL
STATEMENTS AT JUNE 30, 2026
The publication of the Group’s consolidated half -year financial statements at June 30, 2026 was approved by the Board of Directors on September 8, 2026.
Accounting standards and basis of preparation Content and form of the Financial Statements The consolidated financial statements at June 30, 2026 have been prepared in accordance with IFRS issued by the International Accounting Standards Board (“IASB”) and approved by the European Union, as well as the provisions issued under Article 9 of Legisl ative Decree No. 38/2005. IFRS refers to all the revised international accounting standards (IAS) and all of the interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”) - previously known as the Standing Interpretations Committee (“SIC”).
The accounting policies and principles applied in the preparation of the H1 2026 consolidated financial statements are in continuity with those of the previous year, since, for the purpose of preparing its consolidated financial statements, the Company has adopted IFRS as of the year ended December 31, 2020, with a transition date of January 1, 2018.
The consolidated financial statements at June 30, 2026 were prepared on the going concern basis.
Taking into account the Group's financial strength and operating profitability, the Directors have assessed that there are no significant uncertainties regardi ng the ability of the companies included in the consolidation to operate as going concerns in the foreseeable future.
The consolidated financial statements at June 30, 2026 consist of the Consolidated Balance Sheet, the Consolidated Income Statement, the Consolidated Comprehensive Income Statement, the Statement of changes in Equity, the Consolidated Cash Flow Statement a nd these Explanatory Notes.
These Financial Statements have been prepared in thousands of Euro - the Parent Company’s functional and “Reporting” currency - in accordance with IAS 21 “The Effects of Changes in Foreign Exchange Rates”. This could produce rounding differences when indi vidual line items are added together as the individual line items are calculated in Euro (rather than in thousands of Euro).
The consolidated financial statements at June 30, 2026 were subject to the limited audit of Deloitte & Touche S.p.A. (appointed by the Shareholders’ Meeting of March 1, 2021).
Consolidation principles and consolidation scope The consolidated financial statements include the statutory financial statements of SECO S.p.A. (Parent Company) and the companies in which the parent company directly and/or indirectly holds a controlling interest. The line -by-line consolidation method ha s been used for these companies.
The following companies are included in the consolidation scope:
▪ SECO S.p.A., with registered office in Arezzo 52100, Via Achille Grandi No. 20, Tax/VAT No.
00325250512, share capital Euro 1,296,944.48;
20 ▪ PSM Tech S.r.l., with registered office in Arezzo 52100, Via Achille Grandi No. 18, Tax/VAT No.
02301580516, share capital Euro 30,000.00;
▪ CLEA S.r.l., with registered office in Arezzo 52100, Via Achille Grandi No. 18, share capital Euro 61,200.00.
▪ SECO Asia, limited, with registered office in Hong Kong, share capital Euro 6,999,957.05;
▪ Fannal Electronics Co., Ltd, with registered office at 6F, No. 77, Bowang Street, Yuhang District, Hangzhou, Zheijang (People's Republic of China), share capital RMB 7,365,517.00;
▪ Seco USA Inc., with registered office in Rockville, Maryland (USA), share capital USD 3,291,786.37;
▪ Seco Microelectronics Co., Ltd., with registered office in Hangzhou (People's Republic of China), share capital RMB 64,763,000.00;
▪ Seco BH d.o.o, with registered office in Tuzla, Bosnia & Herzegovina, share capital BAM 20,000.00;
▪ SECO Northern Europe Holding GmbH, with registered office in Hamburg, Federal Republic of Germany, share capital Euro 25,000.00;
▪ SECO Northern Europe GmbH, with registered office in Hamburg, Federal Republic of Germany, share capital Euro 102,661.00;
▪ SECO Mind Germany GmbH (Stuttgart), with registered office in Stuttgart, Federal Republic of Germany, share capital Euro 25,000.00;
▪ E-GITS India Private Ltd. (Chennai, India), with registered office in Chennai, India, share capital INR
640,200.00
Any associated undertakings and minor companies in which the interest held is less than 20% and which constitute non -current financial assets are valued on the basis described in the paragraph entitled "Recognition, classification and valuation criteria".
For the consolidation, the statutory financial statements or reporting packages of the individual companies were used, already approved by the respective Boards for approval, reclassified and adjusted in line with the accounting standards and policies adop ted by the Group.
As per IFRS 10, the Group exercises control when it is exposed to or has the right to variable income streams, based on the relationship with the investee, and, at the same time, has the capacity to affect such income streams through the exercise of power over the investee.
Generally, there is presumption that the majority of the voting rights results in control. To support this presumption, when the Group holds less than a majority of the voting rights, the Group, in accordance with IFRS 10 standard, considers all relevant f acts and circumstances to determine whether it has control of the entity, including any contractual arrangements with other holders of voting rights.
Consolidation is carried out according to the line -by-line method; the assets and liabilities, charges and income of the consolidated companies are fully included in the consolidated financial statements from the moment control is acquired until the date w hen it ceases. In accordance with IFRS 3, the subsidiaries acquired by the Group are accounted for using the acquisition method, according to which:
• the amount transferred in a business combination is valued at fair value, calculated as the sum of the fair value of the assets acquired and the liabilities assumed by the Group at the acquisition date and any equity instruments issued in exchange for cont rol of the company acquired;
accessory charges to the transaction are expensed to the income statement when incurred;
• Goodwill is initially recognized at cost, represented by the excess of all the consideration paid and the amount recorded for minority interests over the fair value of the net identifiable assets acquired and liabilities assumed by the Group. This goodwill is not amortized but is subject to impairment testing at least annually, and in any case whenever events occur that suggest a reduction in value, in order to verify its recoverability;
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• If the fair value of the net assets acquired exceeds the total consideration paid, the Group again verifies if it has correctly identified all the assets acquired and all the liabilities assumed and reviews the procedure utilized to determine the amount to be recorded at the acquisition date.
If from the new valuation the fair value of the net assets acquired is still above the consideration, the difference (gain) is recorded in the income statement.
The share of equity and result for the period attributable to non -controlling interests are recorded separately, in the balance sheet, income statement and comprehensive income statement respectively.
The payables and receivables and income and charge relating to transactions between companies in the consolidation scope are eliminated. Profits arising from transactions between these companies and relating to amounts included in equity attributable to th e shareholders of the parent company are eliminated. The tax effects of consolidation adjustments are taken to the account “deferred tax liabilities”, where liabilities and to the account “deferred tax assets” where assets;
Foreign currency transactions are recorded at the current exchange rate on the date of the transaction. Monetary assets and liabilities in foreign currency are translated to the operative currency at the exchange rate at the reporting date.
The separate financial statements of each company belonging to the Group are prepared in the primary currency where they operate (operational currency). For the purposes of the consolidated financial statements, the financial statements of each foreign ent ity are expressed in Euro, which is the operational currency of the Group and the presentation currency of the consolidated financial statements. All of the assets and liabilities of foreign subsidiaries in currencies other than the Euro which are included in the consolidation are translated using the exchange rate at the balance sheet date (current foreign exchange rate method). Income and costs are translated at the average exchange rate for the period. The exchange rate differences resulting from the ap plication of this method, as well as the exchange rate differences resulting from the comparison between the opening equity converted at current exchange rates and the same converted at historical exchange rates, pass through the comprehensive income state ment and are accumulated in a specific equity reserve until the investment is sold.
In the preparation of the consolidated cash flow statement the average exchange rates for the year are used to convert the cash flows of foreign subsidiaries.
The exchange rates used for the translation to Euro of the financial statements of the companies included in the consolidation are shown in the table below.
Currency Exchange rate at
30/06/2026 Average
January -June
2026 Exchange rate at
31/12/2025 Average
January -June
2025
US Dollar (USD) 1.13940 1.16660 1.17500 1.13000 Chinese Renminbi (CNY) 7.73140 8.00730 8.22620 8.11850 Convertible mark 1.95583 1.95583 1.95583 1.95583
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IFRS STANDARDS, AMENDMENTS AND INTERPRETATIONS APPLIED FROM JANUARY 1, 2026
The following IFRS Accounting Standards, amendments and interpretations were applied for the first time by the Group from January 1, 2026:
• On May 30, 2024, the IASB published the document “Amendments to the Classification and Measurement of Financial Instruments —Amendments to IFRS 9 and IFRS 7”. This clarifies a number of problematic issues emerging from the post -implementation review of IFRS 9, including the accounting treatment of financial assets whose returns vary upon achievement of ESG objectives (i.e., green bonds). Specifically, the changes aim to:
o Clarify the classification of financial assets with variable returns and linked to environmental, social and corporate governance (ESG) objectives and the criteria to be used for the SPPI test assessment;
o determine that the date of settlement of liabilities through electronic payment systems is the date on which the liability is settled. However, an entity is permitted to adopt an accounting policy to allow a financial liability to be derecognized before tr ansferring liquidity on the settlement date under certain specific conditions.
With these amendments, the IASB has also introduced additional disclosure requirements with respect to investments in equity instruments designated to FVOCI in particular.
The adoption of this amendment does not have effects on the consolidated financial statements of the Group.
• On December 18, 2024, the IASB published an amendment entitled "Contracts Referencing Nature -dependent Electricity - Amendment to IFRS 9 and IFRS 7". The document seeks to support entities in reporting the financial effects of renewable electricity purchas e agreements (often structured as Power Purchase Agreements). Based on these contracts, the amount of electricity generated and purchased can vary based on uncontrollable factors such as weather conditions. The IASB has made targeted amendments to IFRS 9 a nd IFRS 7. The
amendments include:
o a clarification regarding the application of "own use" requirements to this type of
contract;
o the criteria for allowing such contracts to be accounted for as hedging instruments;
and,
o the new disclosure requirements to enable financial statement users to understand the effect of these contracts on an entity's financial performance and cash flows.
The adoption of this amendment does not have effects on the consolidated financial statements of the Group.
• On July 18, 2024, the IASB published a document called "Annual Improvements Volume 11".
The document includes clarifications, simplifications, corrections and changes to improve the consistency of several IFRS Accounting Standards. The modified standards a re:
o IFRS 1 First -time Adoption of International Financial Reporting Standards;
o IFRS 7 Financial Instruments: Disclosures and related guidance on the implementation of
IFRS 7;
o IFRS 9 Financial Instruments;
o IFRS 10 Consolidated Financial Statements; and o IAS 7 Statement of Cash Flows.
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The adoption of this amendment does not have effects on the consolidated financial statements of the Group.
IFRS ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS APPROVED BY THE EU, NOT YET
MANDATORY AND NOT ADOPTED IN ADVANCE BY THE GROUP AT JUNE 30, 2026
At the reporting date, the relevant bodies of the European Union have concluded the process necessary for the implementation of the amendments and standards described below, although these standards are not mandatory and were not adopted in advance by the Group at June 30, 2026:
• On April 9, 2024, the IASB published a new standard - IFRS 18 Presentation and Disclosure in Financial Statements - which will replace IAS 1 Presentation of Financial Statements. The new standard seeks to improve the presentation of financial statement for mats, with particular regard to the income statement format. Specifically, the new standard requires that:
o revenues and expenses are classified into three new categories (operating section, investment section, and financial section), in addition to the tax and discontinued operations categories already in the income statement;
o Two new sub -totals are presented: operating income and earnings before interest and taxes (i.e., EBIT).
The new standard also:
o requires more information on the performance indicators defined by management;
o Introduces new criteria for aggregation and disaggregation of information; and, o introduces a number of changes to the format of the cash flow statement, including a requirement that operating income is used as the starting point for the presentation of the cash flow statement prepared using the indirect method and that certain classif ication options are eliminated for some existing items (such as interest paid, interest received, dividends paid and dividends received).
The standard will be effective from January 1, 2027, although advance application is permitted. The Directors are currently assessing the possible effects of introduction of this new standard on the Group’s consolidated financial statements.
IFRS ACCOUNTING STANDARDS, AMENDMENTS AND INTERPRETATIONS NOT YET ENDORSED BY THE
EUROPEAN UNION
At the reporting date, the relevant bodies of the European Union had not yet concluded the process necessary for the implementation of the amendments and standards described below.
• On May 9, 2024, the IASB published a new standard - IFRS 19 Subsidiaries without Public Accountability: Disclosures (together with the Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures published on August 21, 2025). The new stan dard introduces a number of simplifications with reference to the disclosure required by IFRS Accounting Standards in the financial statements of a subsidiary that meets the following requirements:
o it has not issued equity or debt instruments listed on a regulated market and is not in the process of issuing them;
o it has its own parent company that prepares consolidated financial statements in accordance with IFRS.
24 The standard will be effective from January 1, 2027, although advance application is permitted. The directors do not expect this amendment to have a significant impact on the Group consolidated financial statements.
• On November 13, 2025, the IASB published a document called "Translation to a Hyperinflationary Presentation Currency - Amendment to IAS 21" that clarifies conversion procedures for an entity whose presentation currency is that of a hyperinflationary econom y. The entity applies the
amendments where:
o its functional currency is that of a non -hyperinflationary economy and is converting its operating results and statement of financial position to the currency of a hyperinflationary economy; or, o is converting the operating results and statement of financial position of a foreign operation whose functional currency is that of a non -hyperinflationary economy into the currency of a hyperinflationary economy.
The amendments will be applicable to financial statements for periods beginning January 1, 2027.
The directors do not expect this amendment to have an impact on the Group consolidated financial statements.
• On May 27, 2026, the IASB published IFRS 20 - Regulatory Assets and Regulatory Liabilities. The new standard applies to all entities subject to a specific type of rate regulation, i.e. rate regulation that creates timing differences.
The objective of the new standard is to require an entity to provide relevant information that reflects the impact of income and expenses arising from regulated activities on the entity’s profit or loss, in addition to the impact of assets and liabilities arising from regulated activities on the statement of financial position. In order to achieve this objective, the new standard sets out the requirements for the recognition, measurement, presentation and disclosure of assets, liabilities, revenue and expen ses arising from regulated activities. Assets and liabilities arising from regulated activities constitute a subset of the rights and obligations created by a regulatory agreement. Information regarding this subset of rights and obligations enables financi al statement users to understand:
a) the revenue and expenses arising from an entity's regulated activities, which result from the assets and liabilities associated with those regulated activities. This understanding, together with the information required by other IFRS, will provide guidance on the total allowable compensation for regulated goods or services provided by the entity during a reporting period and, consequently, on the entity’s financial performance and future cash flow prospects.
b) the assets and liabilities arising from an entity's regulated activities. This understanding will provide information upon the entity’s financial position at the end of a reporting period and upon the amount, timing and uncertainty of the entity’s future c ash flows.
IFRS 20 will replace IFRS 14 - Regulatory Deferral Accounts - and will be effective as of January 1, 2029, although early adoption is permitted.
The directors do not expect this standard to have a significant impact on the Group consolidated financial statements.
• On June 27, 2026, the IASB published a document entitled “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (Amendments to IAS 28)”, which clarifies
25
which entities are eligible to measure investments in associates and joint ventures using the fair value option provided under IAS 28. The IASB has decided to develop amendments to address:
o the lack of clarity regarding the meaning of “similar entities, including investment -linked insurance funds” and how that definition should be interpreted - narrowly or broadly;
and,
o the various interpretations of the relationship between the scope of application of the fair value option in IAS 28 and the requirements of IFRS 18 regarding “specified main business activities”.
The amendments shall be applied concurrently with the implementation of IFRS 18 and, therefore, will apply to financial statements for fiscal years beginning on or after January 1, 2027.
The Directors do not expect these amendments to have a significant im pact on the Group consolidated financial statements.
Financial Statements
The financial statements of the SECO Group are presented as follows:
• the Balance Sheet reports assets and liabilities analyzed by maturity, separating current and non -
current accounts as due within and beyond 12 months;
• the Income Statement, in view of the specific activity carried out, is presented with the individual items analyzed by nature;
• the Comprehensive Income Statement shows the components of net income suspended in equity and is presented as a separate statement and is presented in accordance with the revised version of IAS 1. The items presented in Other Comprehensive Income are group ed based on whether or not they can be reclassified to profit or loss subsequently;
• the Statement of Changes in Equity shows changes in capital, reserves and net profit for the
period;
• the Consolidated Cash Flow Statement was prepared reporting financial cash flows according to the “indirect method”, as permitted by IAS 7.
The functional and presentation currency of the Group is the Euro. Unless otherwise specified, amounts shown in the Notes to the Financial Statements are expressed in thousands of Euro.
Accounting policies
The main accounting policies adopted in the preparation of the consolidated financial statements at June 30, 2026 are disclosed below.
Property, plant & equipment The Group applies the provisions of IAS 16 “Property, Plant & Equipment".
Property, plant and equipment is recorded at cost, including directly allocated accessory costs and those necessary for the asset being in the condition for which it was acquired, and increased, in the presence of current obligations, by the current value of the estimated cost for the disposal of the asset.
If major components of such tangible fixed assets have different useful lives, such components are accounted for separately. Land, both constructible and relating to civil and industrial buildings, is no t depreciated as it has an unlimited useful life.
Property, plant & equipment are presented net of accumulated depreciation and any losses in value, calculated as described below. Depreciation is calculated on a straight -line basis according to the estimated useful life of the asset; useful life is review ed annually and any changes, where necessary, are
26 made on the basis of the new estimate. The main economic -technical rates used are those derived from the individual useful lives:
Category Rates
Buildings 3%
Light constructions 10% General plant 10% Specific plant 15%
Machinery 25%
Equipment 15%
Furniture & fittings 12% Motor vehicles 25% Trade fairs stands 10%
Molds 25%
Other assets 20%
The depreciation criteria as well as useful lives and residual values are reassessed and re -defined at least at the end of each year in order to take any significant changes into account.
A tangible fixed asset is eliminated from the financial statements when the asset is sold or when no expected economic benefits exist from its use or disposal. Gains and losses on disposal are determined by comparing the consideration with the net book val ue. The amount so determined is recorded in the income statement on an accruals basis.
Borrowing costs that are directly attributable to the acquisition, construction or production of a tangible fixed asset which requires a lengthy period before availability for use shall be capitalized as part of the cost of that asset. All other financial charges are recognized as a charge in the period in which they are incurred. Financial charges consist of interest and other costs that a Group entity incurs in connection with obtaining financing.
Intangible assets
Intangible assets purchased or constructed internally are recorded when it is probable that the use of the asset will generate future economic benefits and when its cost can be reliably calculated.
Intangible assets acquired separately are initially recogn ized at cost, while those acquired through business combinations are recognized at fair value on the acquisition date. After initial recognition, the intangible assets are recorded at cost less accumulated amortization and any loss in value. Intangible assets internally generated, with the exception of development costs, are not capitalized and are expensed to the income statement in the year they are incurred.
An intangible asset purchased or produced internally is recognized, in accordance with IAS 38 – Intangible Assets, only if identifiable, controllable, where future economic benefits are expected and its costs can be reliably calculated.
Development costs are recognized as assets only if all of the following conditions are met: the Group is able to demonstrate:
• the technical feasibility to complete the intangible asset, so as to be available for use or sale;
• the intention to complete the asset and its capacity and intention to utilize or sell the asset;
• the means by which the asset will generate future economic benefits;
• the availability of resources to complete the asset;
• the capacity to reliably value the cost attributable to the asset during development.
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Capitalized costs include only those costs that are directly attributable to development. The development costs capitalized are amortized on a straight -line basis, commencing from the beginning of the production over the estimated life of the product. Duri ng the development period the asset is subject to an annual impairment test.
Costs that are not related to development or that do not meet the requirements identified above are recognized in the income statement when incurred.
The useful life of the intangible assets is measured as finite or indefinite. The finite intangible assets are amortized over the useful life of the asset and verified for any indications of a possible impairment. The amortization period and method applie d is reviewed at the end of each year or more frequently if necessary. Changes in the expected useful life or of the manner in which the future economic benefits related to the intangible assets are received by the Group are recorded amending the period an d method of amortization, and treated as changes in the accounting estimates. The amortization of finite intangible assets is recorded in the income statement under the category of costs relating to intangible assets.
Category Rates
Software, licenses and others 20% Development costs 20% Other intangible assets 20%
For some specific intangible assets as a result of purchase price allocation process, a lower amortization rate was defined than those shown in the table above. Specifically for the customer list business of SECO Northern Europe, the amortization rate defi ned in purchase price allocation is 4%, while for the intangible assets subject to the business unit transfer by Camozzi Digital S.r.l. the amortization rates defined in the purchase price allocation are 5.9% (17 years) and 8.3% (12 years).
Intangible assets with indefinite useful lives (Goodwill) are tested annually for impairment at the cash -
generating unit level. These assets are not amortized. Gains or losses from the disposal of an intangible asset are measured as the difference between the net disposal consideration and the carrying amount of the intangible asset and are recognized in the income statement when the asset is disposed.
Impairment of non -financial assets Assets with an indefinite useful life are not subject to amortization but are subject to an impairment test at least once a year, aimed at verifying whether their book value has reduced.
At each reporting date, the Group reviews the carrying value of its tangible, intangible and right -of-use assets to determine if there are indications that these assets have incurred a loss in value (impairment test). Where indications exist in an interim period that the asset's value has decreased, management updates the impairment test.
Amortized assets are subjected to an impairment test if there are events or circumstances such that the carrying amount cannot be recovered (trigger event). In both cases, any impairment is recorded at the amount of the book value that exceeds the recovera ble value. This latter is the higher between the fair value of the asset less costs to sell and its value in use. If it is not possible to determine the value in use of an asset individually, it is necessary to determine the recoverable value of the CGU (C ash Generating Unit) that includes the asset. The CGU is the smallest group of assets that comprises the asset being tested for impairment and generates cash inflows that are largely independent of the cash inflows from the other assets or groups of assets . The directors have identified three CGU’s within the Group.
28 In the determination of the value in use of each CGU, the estimated future cash flows are discounted by the Group at a post -tax rate that reflects the market assessment of the present value of money and the risks specific to the asset. In the determination of the fair value net of selling costs, account is taken of recent market transactions. Where it is not possible to identify these transactions, an adequate valuation model is utilized. These calculations are made utilizing appropriate valuation multipl iers, listed equity prices for publicly traded securities and other fair value indicators available.
The Group bases its impairment test on recent budgets and forecasts, approved by the Board of Directors. These budgets and forecasts generally cover a period of three years. A constant long -term growth rate is calculated to project future cash flows beyo nd the third year.
The losses in value of operating assets are recorded in the income statement in the category of costs relating to those assets.
The value of an asset previously written down may be restated only if there have been changes in the assumptions used to determine the recoverable value, after the last recording of a loss in value. The recovery of value cannot exceed the carrying amount w hich would have been calculated, net of depreciation or amortization, where no such loss in value was recorded in previous years. This recovery value is recognized in the income statement.
Right -of-use
Lease agreements entered into as a lessee result in the recognition of an asset representing the right to use the leased asset and the financial liability for the obligation to make payments under the agreement. The assessment as to whether a contract cont ains a lease is made on the date of inception.
In particular, the lease liability is initially recorded at the present value of future payments to be made, adopting a discount rate equal to the implicit interest rate of the contract or, if this cannot be e asily determined, using the lessee's incremental borrowing rate. After initial recognition, the lease liability is measured at amortized cost using the incremental interest rate and is restated following renegotiation of contracts, changes in rates, change s in the valuation of any contractual options. The Right -of-use is initially recognized at cost and is subsequently adjusted to take account of the amortization recognized, any impairment losses and the effects of any restatement of lease liabilities.
If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term or if the cost of the asset consisting of the right -of-use reflects the fact that the lessee will reasonably exercise the option to purchase, the lessee sha ll depreciate the asset consisting of the right -of-use from the commencement date to the end of the useful life of the underlying asset.
The Group determines the lease term as the non -cancellable period of the lease to which the periods covered by the lease extension option should be added, if there is a reasonable certainty of exercising such option.
The Group uses its judgement in assessing whether it is reasonably certain that the option will be renewed. However the Group considers all relevant factors that may result in an economic incentive to exercise renewal options or to terminate the contract. After inception, the Group reassesses the lease term where there is a significant event or significant change of circumstance within its control that may affect its ability to exercise (or not to exercise) the option to renew (for example, investments in leasehold improvements or significant specific changes on the leasehold).
The Group decided to adopt a number of simplifications, as provided for by the standard, excluding from the above treatment contracts with a duration of 12 months or less and that do not contain a purchase option (so -called "short -term", calculated on the residual duration at the time of first -time adoption or, in the event of stipulation after January 1, 2018, on the contractual duration), those with a
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value of less than Euro 30 thousand (so -called "low -value") and those relating to intangible assets. The Group has its own production facilities even in countries where ownership rights are not allowed.
Advance rentals, paid to obtain the availability of t he land on which their production facilities are located, are recorded under right -of-use. Rentals related to contracts that do not contain a lease, and those related to short -term leases and low -value assets are recognized as expenses on a straight -line basis over the term of the contract.
Goodwill
Goodwill, in application of IFRS 3, is initially recognized at cost represented by the excess of the total amount paid and the amount recognized for minority interests in respect of the fair value of the net identifiable assets acquired and the liabilities assumed by the Group. It represents an intangible asset with indefinite life. For each business combination, the Group decides whether to measure the minority interest at fair value or in proportion to the amount held in the fair value of the identifiabl e net assets of the investee. The acquisition costs are expensed in the year and classified under service expenses.
Goodwill is not amortized but subjected annually, or more frequently if certain events or changed circumstances indicate the existence of a permanent loss in value, to impairment tests in accordance with IAS 36. After initial recognition, goodwill is measu red at cost net of accumulated impairment. When all or part of a previously acquired company (whose acquisition produced goodwill) is sold, the corresponding residual value of goodwill is considered when calculating the capital gains or loses generated by such sale.
Business combinations
Business combinations are recognized using the acquisition method. The acquisition cost is calculated as the total of the fair value at the date of acquisition and the value of any minority equity holding in the acquisition measured at fair value. For ever y business combination, the buyer must measure any minority holding, which remains subsequently in the fair value of the business combination, at fair value or in proportion to the amount held in the fair value of the identifiable net assets of the acquisi tion. The acquisition costs are expensed and classified under administration expenses. When the Group acquires a business, i.e., a business consisting of inputs and substantial processes applied to those inputs that are capable of contributing to the creat ion of output, it must classify or designate the assets acquired or liabilities assumed in accordance with the contractual terms, economic conditions and other relevant terms in place at the date of acquisition. Every potential payment is recorded by the a cquirer at fair value at the acquisition date. The change in the fair value of the potential payment classified as an asset or liability will be recorded in accordance with IFRS 9, in the income statement. If the contingent consideration is classified as e quity, its value does not need to be recalculated and its settlement will be accounted for against equity.
Business Combinations by the Group The Group has not undertaken any Business Combinations.
Financial assets
IFRS 9 provides for a single approach for the analysis and classification of all financial assets, including those contained in embedded derivatives. The classification and the relative measurement is made considering both the management model of the finan cial assets and the contractual characteristics of the cash flows from the asset. Depending on the characteristics of the instrument and the business model adopted for its management, a distinction is made between the following three categories: (i) financ ial assets valued at amortized cost; (ii) financial assets valued at fair value with recognition of the effects to other comprehensive income (also, OCI); (iii) financial assets valued at fair value with
30 recognition of the effects to the income statement. Financial assets are valued using the amortized cost method when both of the following conditions are met: - the management model of the financial asset consists of holding it for the sole purpose of col lecting the related cash flows; and - the financial asset generates, at contractually predetermined dates, cash flows that exclusively represent the return on the financial asset. Using the amortized cost method, the initial carrying amount is subsequently adjusted to take account of capital repayments, any write -downs and the amortization of the difference between the repayment value and the initial carrying amount. Amortization is carried out on the basis of the effective internal interest rate which rep resents the rate that makes the present value of expected cash flows and the expected initial carrying amount at the time of initial recognition.
Receivables and other financial assets measured at amortized cost are shown net of the related doubtful debt p rovision. Financial assets represented by debt instruments whose business model provides both the possibility of collecting contractual cash flows and the possibility of realizing capital gains on disposal (so -called business model hold to collect and sel l), are measured at fair value with the effects recognized to OCI. In this case, changes in the fair value of the instrument are recognized in equity, among other components of comprehensive income. The cumulative amount of changes in fair value, recognize d in the equity reserve that includes the other components of comprehensive income, is reversed to the statement of profit and loss when the instrument is derecognized. Interest income calculated using the effective interest rate, exchange rate differences and write -downs are recorded in the income statement. A financial asset representative of a debt instrument which is not valued at amortized cost or at FVTOCI, is valued at fair value with recognition of the effects to the income statement.
Receivables
In accordance with the above criteria, trade and other receivables are financial assets initially recognized at fair value and subsequently measured based on the amortized cost method, net of the doubtful debt provision. IFRS 9 defines an impairment/write -down model of these assets, with the objective to provide useful information to the readers of financial statements in relation to expected losses. According to this model, the Group assesses receivables using an expected loss approach. For trade receivabl es the Group adopts a simplified approach to valuation which does not require the recording of periodic changes in credit risk, but rather the estimation of an Expected Credit Loss ("ECL") calculated over the entire life of the receivable (so -called lifeti me ECL). In particular, the policy implemented by the Group provides for the stratification of trade receivables into categories on the basis of days past due, defining the allocation based on historical experience of losses on receivables, adjusted to tak e account of specific forecast factors relating to creditors and the economic environment. Trade receivables are fully written down if there is no reasonable expectation of recovery, i.e. in the presence of inactive trade counterparties. The carrying amoun t of the asset is reduced through the use of an allowance for impairment and the amount of the loss is recognized in the income statement. When collection of the consideration is deferred beyond the normal commercial terms practiced to customers, the recei vable is discounted.
In the case of factoring and, in particular, to non -recourse assignments of trade receivables, which provide for the almost total and unconditional transfer to the assignee of the risks and benefits relating to the assigned receivables, the receivables the mselves are removed from the financial statements.
In the case of assignments in which risks and benefits are not transferred, the related receivables are retained in the financial statements until the assigned debtor is paid. In this case, any advances collected by the factor are recorded under payables t o other lenders.
Inventories
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Inventories are recorded at the lower of purchase or production cost, determined by attributing to the products the costs directly incurred plus the portion of indirect costs reasonably attributed to production under conditions of normal use of production capacity, and realizable value at the balance sheet date, represented by the amount that the company expects to obtain from their sale in the normal course of operations. The cost of raw materials and finished goods is determined by applying the weighted average purchase cost per movement, including ancillary purchase charges. The production costs of finished and semi -finished products include the direct cost of the materials and the labor, in addition to general production expenses based on the normal prod uction capacity, but not considering financial charges.
Obsolete, slow -moving inventories and/or those in excess of normal requirements are written down through a specific provision, in relation to their possibility of use or future realization. Write -downs are restored in future years should the reason for the write -down no longer exist.
Public grants
Public grants are recognized when there is reasonable certainty that they will be received and that the conditions will be satisfied for their attainment.
1) Operating grants Operating grants consist of government grants and subsidies received and intended to supplement revenues. The Group accounts for these contributions on an accruals basis in accordance with IAS 20.
2) Capital grants In the event that the grant is linked to an investment, the investment and the grant are recorded at their nominal value and the release to the income statement takes place progressively over the expected useful life of the relevant investment on a straigh t-line basis, reducing the initial deferred income.
Cash and cash equivalents Cash and cash equivalents include cash on hand and bank and postal deposits on demand and other uses of treasury with original maturity of no more than three months or otherwise readily liquid without significant costs or losses.
Equity
Share capital
This represents the subscribed and paid -up capital of the Parent Company.
Costs related to the issuance of new shares or options are classified, if any, in equity as a decrease in the amounts arising from the issuance of such instruments.
Reserves
These comprise:
- legal reserve
- specific allocation reserve
- IAS/IFRS transition reserve, net of the tax effect
- share premium reserve
- retained earnings
Treasury shares
32 As of June 30, 2026, 522,898 treasury shares are held in escrow in connection with SECO MIND's (now Clea S.r.l.) "minority purchase agreement”. These shares are recognized as a reduction of equity. The original cost of the treasury shares and the revenues deriving from any subsequent sale are recognized as equity movements.
Employee benefits
The liability relating to the benefits paid to employees and directors on or after termination of employment under defined -benefit plans is determined, separately for each plan, on the basis of actuarial assumptions, estimating the amount of future benefit s that employees have accrued at the reference date (the so -called "projected unit credit method"). The liability, recorded on the balance sheet net of any plan assets, is recognized on an accrual basis over the vesting period. The liability is calculated by independent actuaries. The components of defined benefit cost are recognized as follows: - service costs are recognized in the income statement as part of personnel costs; - net finance costs on the defined benefit liability or asset are recognized in t he income statement as Financial income/(expense), and are determined by multiplying the value of the net liability/(asset) by the rate used to discount the obligations, taking into account contribution and benefit payments that occurred during the period; - the remeasurement components of the net liability, which include actuarial gains and losses, return on assets (excluding interest income recognized in the income statement) and any change in the asset limit, are recognized immediately in Other comprehen sive income (loss). These components should not be reclassified to the Income Statement in a subsequent period.
Termination benefits are recognized on the earliest of the following dates: i) when the Company can no longer withdraw its offer of such benefits, and ii) when the Company recognizes the costs of a restructuring.
Incentive plans
In line with the provisions of IFRS 2, the Group classifies medium/long -term incentive plans as "share -
based payments" and requires, for those falling into the "equity -settled" category, which requires the physical delivery of the shares, the determination at the grant date of the fair value of the option rights issued and its recognition as a cost recognized on a straight -line basis over the vesting period, with a counter -entry in a specific equity reserve. This allocation is made on the basis of an estima te of the rights that will actually accrue in favor of the staff entitled to them, taking into account the conditions of use of the same not based on the market value of the rights.
At the end of the fiscal year, the equity reserve is reclassified to available reserves.
Provisions for risks and charges Where the Group has a legal or implicit obligation as a result of a past event and it is probable that it will incur a loss of economic benefits in order to meet that obligation, a provision is recorded. If the time factor of the expected loss of benefits is significant, the amount of future cash outflows is discounted at a pre -tax interest rate that takes into account market interest rates and the specific risk of the liability to which it relates.
No provision is made for any future operating losses. Provisions are measured at the current value of management's best estimate of expenditures to meet the current obligation as of the reporting date.
In the case of lawsuits, the amount of provisions has been determined on the basis of estimates made by the Group, together with its legal advisors, in order to determine the probability, timing and amounts involved and the probable outflow of resources. T he provision made will be adjusted as the case develops. At the conclusion of the dispute, the amount that may differ from the provision set aside in the financial statements will be charged to the income statement.
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The risk and charges provisions mainly comprise the Seco Northen Europe Product warranty provision and the Supplementary Agents Indemnity Fund (FISC), which is allocated in relation to the termination of agency contracts at the initiative of the principal for reasons not attributable to the agent or representative. In fact, the agent or representative will be paid a supplementary agents indemnity, to be calculated on the overall amount of the commissions for which the right to payment arose in favor of the agent for the entire duration of the relationship (from the date of stipulation of the contract to the date of termination) even if the same sums have not been paid in full at the time of termination of the relationship.
Deferred tax assets and liabilities Deferred taxes are calculated using the liability method on temporary differences at the reporting date between the fiscal values of the assets and liabilities and the corresponding values in the financial statements. Deferred tax liabilities are recorded on all temporary assessable differences, with the
following exceptions:
• when the deferred tax liabilities derive from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, has no effects on the result in the financial statements or on the fiscal result;
• the reversal of the temporary differences, related to investments in subsidiaries, associates and joint ventures, can be controlled and it is probable that such will not occur in the foreseeable future.
Deferred tax assets are recognized on all temporary deductible differences, credits and unused fiscal losses carried forward, to the extent of the probable existence of adequate future tax profits, that can justify the use of the temporary deductible diffe rences, credits and fiscal loses carried forward, with the
following exceptions:
• when the deferred tax assets related to the temporary deductible differences derives from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, has no effects on the result in the financial statements or on the
fiscal result;
• in the case of temporary differences related to investments in subsidiaries, associates and joint ventures, the deferred tax assets are only recognized to the probable extent that the temporary differences will reverse in the foreseeable future and there a re sufficient assessable amounts to utilize such temporary differences.
The carrying value of deferred tax assets is revised at the end of the year and reduced to the extent that it is no longer likely that there will be sufficient taxable income against which to recover all or part of the assets. Deferred taxes are determined based on the tax rates that are expected to apply in the period in which such deferrals will be realized, considering the rates in effect and those already enacted, or substantially in effect, at the date of the financial statements. Deferred taxes are recognized directly to the income statement, with the exception of those relating to accounts directly recognized to the comprehensive income statement, in which case the deferred taxes are also recognized to the comprehensive income statement.
Financial liabilities
Financial liabilities include borrowings, current financial liabilities and financial liabilities arising from leases. Pursuant to IFRS 9, they also include trade and other payables. Financial liabilities are recorded at fair value net of transaction costs . After initial recognition, loans are recognized on the basis of amortized cost, calculated by applying the effective interest rate. A financial liability is derecognized when the underlying obligation of the liability is settled, cancelled or fulfilled. If an existing financial
34 liability is replaced by another by the same lender but under substantially different conditions, or if the conditions of an existing financial liability are substantially changed, such a swap or change is treated as an elimination of the original liabilit y and the opening of a new liability, with any differences in accounting values recorded in the income statement. With the introduction of IFRS 9, in the event of renegotiation of a financial liability that does not qualify as an “settlement of the origina l debt", the difference between i) the carrying amount of the liability prior to modification and ii) the present value of the cash flows of the modified debt, discounted at the original rate (IRR), is recognized in the income statement.
Amortized cost and measurement of fair value All financial liabilities are recognized according to the amortized cost method.
Under this approach, the nominal amount of the liability is reduced by the amount of the related issue and/or signing costs plus any costs related to the refinancing of existing liabilities. These costs are amortized using the effective interest rate as th e discount rate for future interest expense and repayments of principle at the net carrying amount of the financial liability.
IFRS 13 – Fair Value Measurement defines fair value as the price that would be received for the sale of an asset, or that would be paid to transfer a liability in an arm’s length transaction at the measurement date. In the absence of an active and properly functioning market, fair value must be measured using valuation techniques. The standard also establishes a fair value hierarchy:
• level 1 - assets or liabilities subject to valuation listed on an active market;
• level 2 - input based on prices listed at the previous point, which are directly observable (prices) or indirectly (derivatives from the prices) on the market;
• level 3 - input which is not based on observable market data.
Derivative instruments and hedge accounting The derivative instruments entered into by the Group are designed to cover exposure to the interest rate risk associated primarily with loan agreements. On the date the contract is entered into, derivative instruments are initially recognized at fair value and, if the derivative instruments are not formally designated as hedging instruments, changes in fair value recognized subsequent to initial recognition are treated as a financial component of net income for the year. If, on the other hand, the derivativ es meet the requirements to be classified as hedging instruments and are formally designated as such, the subsequent changes in fair value are accounted for by following the specific criteria set out in IFRS 9 below. For each derivative financial instrumen t identified as a hedging instrument, its relationship to the hedged item is documented, including risk management objectives, hedging strategy, and assessment of hedge effectiveness. The effectiveness of each hedge is tested both at the time of inception of each derivative instrument and during its life. Generally, a hedge is considered to be highly "effective" if, both at its inception and during its life, changes in the fair value in the case of a fair value hedge or in the expected future cash flows in the case of a cash flow hedge of the hedged item are substantially offset by changes in the fair value of the hedging instrument. When the hedge concerns changes in the fair value of assets or liabilities recorded in the financial statements (fair value he dge), both the changes in the fair value of the hedging instrument and the changes in the hedged item are recorded in the Income Statement. In the case of a hedge aimed at neutralizing the risk of changes in future cash flows deriving from the future execu tion of transactions that are expected to be highly probable at the reporting date (cash flow hedge), the changes in the fair value of the derivative instrument posted subsequent to initial recognition are accounted for, limited only to the effective porti on, among the components of Comprehensive Income and Loss. When the economic effects arising from the hedged item become apparent, the reserve is reversed to the Income Statement among the operating
35
components. If the hedge is not perfectly effective, the change in fair value of the hedging instrument, referring to the ineffective portion of the hedge, is immediately recorded in the income statement. If, during the life of a derivative instrument, the expected transaction for which the hedge was activated is no longer expected to take place, the part of the "reserves" item relating to this instrument is immediately reversed to the Income Statement for the year. On the other hand, if the derivative instrument is sold or no longer qualifies as an effective hedging instrument, the part of the "reserves" item representing the changes in fair value of the instrument, recorded up to that moment, is maintained as a component of Comprehensive Income and is reve rsed to the Income Statement in accordance with the classification criterion described above, at the same time as the economic effects of the transaction originally covered by the hedge occur. Financial assets are derecognized from the balance sheet when the right to receive the cash flows from the instrument ceases and the Company has transferred all the risks and rewards relating to the instrument and the relative control.
Revenues from sales and services On the basis of the five -stage model introduced by IFRS 15, the Group recognizes revenue after identifying the contracts with its customers and the related services to be provided (transfer of goods and/or services), determining the consideration to which it believes it is entitled in exchange for the provision of each of these services, and assessing the way in which these services will be provided (provision at a specific time versus provision over time). In particular, the Group recognizes revenues only if the following requirements are met (so -called identification requirements of the "contract" with
the customer):
a) the parties have approved the contract (in writing, orally or in compliance with other normal commercial practices) and have committed to fulfill the respective obligations; an agreement therefore exists between the parties which creates the applicable rig hts and obligations irrespective of the form with which this agreement takes;
b) the Group may identify the rights of each of the parties with respect to the goods or services to
be transferred;
c) the Group can identify the payment conditions for the goods or services to be transferred;
d) the contract has commercial substance;
e) it is likely that the Group will receive the consideration to which it is entitled in exchange for the goods or services that will be transferred to the client.
If the above requirements are not met, the related revenue is recognized when: (i) the Group has already transferred control of the goods and/or provided services to the customer and all, or almost all, of the consideration promised by the customer has bee n received and is non -refundable; or (ii) the contract has been terminated and the consideration the Group has received from the customer is non -
refundable. If the above requirements are met, the Group applies the recognition rules described below. Revenue s from sales are recorded when control of the asset subject to the transaction is transferred to the purchaser, or when the customer acquires full capacity to decide on the use of the asset as well as to derive substantially all the benefits, on the basis of the terms defined with the customer. Revenues from services are recognized when they are rendered with reference to the stage of completion. The Group uses an input -based method to measure the progress of services because there is a direct relationship between labor hours expended and the transfer of services to the customer.
Revenues are represented net of discounts, including, but not limited to, sales incentive programs and customer bonuses, as well as taxes directly related to the sale of goods.
Costs
36 Costs are recognized net of returns, discounts and allowances in accordance with the accrual basis of accounting.
Costs for the purchase of goods are recorded when all risks and rewards have been transferred, which normally coincides with the shipment of the goods. Costs for services are recorded on an accrual basis based on when the services are received.
Finance income
Financial income is recognized on an accrual basis. This includes interest income on funds invested, foreign currency gains and income deriving from financial instruments, when not offset by hedging operations. Interest income is recorded in the income sta tement at the moment of maturity, considering the effective yield.
Financial charges
Financial charges are recognized on an accrual basis. They include interest expense on borrowings calculated using the effective interest method, foreign currency losses and losses on derivative financial instruments. The interest expense portion of financ e lease payments is charged to the income statement using the effective interest method.
Income taxes
Income taxes are recognized on the basis of the best estimate of the expected tax rates for the entire year.
Earnings per share
1) Basic
Basic earnings per share is calculated by dividing the overall result for the period attributable to holders of ordinary shares of the Parent Company by the weighted average number of ordinary shares outstanding during the year, excluding treasury shares.
2) Diluted
Diluted earnings per share is calculated by dividing the total earnings per share for the period attributable to holders of the Parent Company's ordinary shares, excluding treasury shares, by the weighted average number of shares outstanding, adjusted to t ake account of the effects of all dilutive potential ordinary shares. In order to calculate the diluted earnings, the average weighted number of shares outstanding is adjusted in respect of the dilution potential of ordinary shares, while the profit or loss of the company is adjusted to take into account the effects, net of income taxes, of the conversion.
Use of estimates The preparation of the financial statements and notes in application of IFRS requires the Directors to apply accounting principles and methods that may be based on historical experience and assumptions that depend on the circumstances in which the valuatio ns are made.
For the preparation of the condensed interim consolidated financial statements, Company Management made valuations and estimates which impact the application of the accounting policies and the amounts of the assets, liabilities, costs and revenues recorded in the financial statements.
However, it should be noted as these refer to estimates, the results obtained will not necessarily be the same as those represented in these financial statements.
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The significant assessments made by management in applying accounting standards and the main sources of uncertainty regarding estimates remain unchanged from those previously outlined in the most recent annual consolidated financial statements.
Sector disclosure
As required by IFRS8, information on the geographical distribution of revenues is also provided below.
Specifically, 4 regions have been identified: EMEA, USA, APAC and ROW. Revenues are allocated by region based on the geographic location of the customer to whom the revenues relate. The breakdown of revenues by region are provided below:
Category 30/06/2026 30/06/2025 Change Change %
EMEA 76,650 72,803 3,847 5.28%
of which Italy 39,291 38,898 392 1.01%
- of which Germany 23,621 25,585 (1,963) -7.67%
USA 12,897 15,063 (2,167) -14.38%
APAC 9,135 8,313 822 9.88%
Rest of the world 38 2,221 (2,183) -98.30% Revenues by region 98,719 98,401 319 0.32%
Sales revenues, which were substantially stable, rose from Euro 98,401 thousand in H1 2025 to Euro 98,719 thousand in H1 2026, increasing 0.32% on the same period in the previous year.
The movement on the first half of the previous year is due to a differing growth mix in the various regions in which the Group operates. In particular, in the EMEA region sales in the first half of 2026 totaled Euro 76,650 thousand, compared to Euro 72,803 thousand in the same period in the previous year. Despite the contraction from the decline in customer volumes, operating particularly in the Vending sector and the Entertainment sector, the growth stemmed from the higher volumes from customers in the Automation and Medical sectors. US revenues decreased from Euro 15,063 thousand in H1 2025 to Euro 12,897 thousand in H1 2026, with the contraction relating to the lower sales volumes to Group customers operating in the Medical and Industrial Automation secto rs. In the APAC area, revenues rose from Euro 8,313 thousand in H1 2025 to Euro 9,135 thousand in H1 2026 as a result of better performances, particularly related to Industrial Automation sector customers.
Risk management policies IFRS 7 requires additional disclosure in the financial statements which permits readers to assess:
• the significance of financial instruments with reference to the Balance Sheet and the Group’s
earnings;
• the nature and amount of risks deriving from financial instruments to which the Group is exposed during the year and at the reporting date, and the manner in which they are managed.
The requirements of the standard supplement the criteria for the recognition, measurement and presentation of financial assets and liabilities in the financial statements contained in IAS 32 "Financial instruments: presentation and disclosure" and IFRS 9 " Financial instruments: recognition and measurement". The present section therefore provides supplementary disclosures as required by IFRS 7.
38 Group operations are exposed to a series of financial risks which may impact the balance sheet/financial position, the result and the cash flows, through the relative impact on financial instrument transactions. These risks may be summarized as follows:
a) credit risk;
b) liquidity risk;
c) interest rate risk;
d) exchange rate risk.
Overall responsibility for the creation and supervision of the Group’s financial and operating risk management system lies with the Board of Directors. The various organization units functionally responsible for the operational management of each type of r isk report to the Board of Directors.
Under guidelines issued by the Board of Director and for each specific risk, these units define the tools and techniques to cover the risks and/or transfer them to third parties (insurance) and evaluate risks neither covered nor insured.
The level of the Group’s exposure to the various categories of financial risk identified is commented upon below.
Credit Risk
The Group is exposed to the risk that its customers may be late or not comply with their payment obligations, according to the agreed terms and conditions and that the internal procedures adopted to assess credit standing and the solvency of customers are not sufficient to ensure collection. The occurrence of such risks could have an adverse effect on the Group's financial position, results of operations and cash flows.
The Group considers its exposure to credit risk to be as follows:
Category 30/06/2026 31/12/2025 Trade receivables 51,373 40,399 Current tax assets 7,764 6,020 Other receivables 6,285 5,393 Total 65,423 51,811
To mitigate this risk, considered contained in relation to trade receivables from third parties, the Group controls the credit quality of the counterparty based on internal or external ratings and sets credit limits that are monitored regularly.
Liquidity risk
The Group is exposed to the risk of not being able to obtain new loans or the renewal of existing ones on terms that are not worse than those already in place, or it may be unable to meet its covenant commitments under existing loan agreements. Moreover, b reach of the covenants provided for in certain existing loan agreements could, in certain cases (due to cross -default clauses), lead to forfeiture of the benefit of the term with respect to other loan agreements. The occurrence of such risks could have a m aterial adverse effect on the Group's financial position, results of operations and cash flows.
39
Cash flows relating to the Group's financial liabilities by maturity are presented below:
Category 30/06/2026 Total Less than 1 year Between 1 and 5 years Beyond 5
years
Non-current financial liabilities 90,178 90,178 0 86,180 3,999 Non-current financial lease liabilities 4,942 4,942 0 4,942 0 Total non -current financial liabilities 95,120 95,120 0 91,122 3,999 Current financial liabilities 8,539 8,539 8,539 0 0 Current part of N -C financial liabilities 14,160 14,160 14,160 0 0 Current financial lease liabilities 2,414 2,414 2,414 0 0 Total current financial liabilities 25,112 25,112 25,112 0 0 Total financial liabilities 120,233 120,233 25,112 91,122 3,999
All the amounts in the table above refer to the nominal amounts not discounted, stated with regards to the residual contractual maturities, both in terms of the capital and interest portions.
In view of the Group’s current net debt and its current ability to generate positive cash flows from operating activities, the liquidity risk is assessed as low. The Group has credit facilities granted by the banking system, which are adequate in relation to its operating needs.
The Group’s cash flows, financing requirements and liquidity are carefully monitored and managed by:
• maintaining an appropriate level of available liquidity;
• diversifying the methods used to raise financial resources;
• arranging appropriate credit facilities;
• monitoring prospective liquidity conditions, in relation to the business planning process.
Interest rate risk The Group is subject to interest rate fluctuation risk related to its debt. Any changes in interest rates (EURIBOR) could affect the increase or decrease in financing costs.
In the event of significant fluctuations in interest rates, borrowing costs arising from loan agreements could also increase significantly.
The Group regularly assesses its exposure to the risk of changes in interest rates and manages these risks through the use of derivative financial instruments, which are formally designated as hedging relationships. The use of derivative financial instrume nts is reserved exclusively for the management of exposure to fluctuations in interest rates connected with monetary cash flows.
Exchange rate risk The Group also carries out its activities outside the Eurozone. Moreover, the financial statements of foreign subsidiaries outside the EU are drawn up in local currency and converted into Euro. Therefore, the Group is exposed to the risk of significant flu ctuations in exchange rates: (i) the so -called economic exchange rate risk, i.e. the risk that revenues and costs denominated in currencies other than the euro take on different values compared to the time at which the price conditions were defined; (ii) t he so -
called translation exchange rate risk, arising from the fact that SECO - although it prepares its financial statements in euros - holds controlling interests in companies that prepare their financial statements in different currencies and, consequent ly, carries out translation operations on assets and liabilities expressed in currencies other than the euro.
40 The Group does not adopt instruments to hedge exchange rate fluctuations. In order to manage exchange rate risk, the Group carries out purchase and sale transactions in the same local currency through current accounts opened in the individual countries.
Risk associated with ICT Systems With reference to the category under consideration, the main risk factors that could compromise the availability of the Group's ICT systems include cyber attacks, which may result in the possible interruption of production and sales support activities or c ompromise the confidentiality, integrity and availability of the personal data managed by the Group. In order to mitigate the occurrence of such risks, Seco has introduced a centralized control system to improve the Group's IT security.
41
Financial assets and liabilities Financial assets and liabilities by valuation method applied are presented below:
Financial assets at 30/06/2026 Assets at FVPL Assets at FVTO Assets at amortized cost Total Non-current financial assets 92 4,729 1,804 6,625 Trade receivables 0 0 51,373 51,373 Current financial assets 1,164 0 0 1,164 Other receivables 0 0 6,285 6,285 Total financial assets as per IFRS 7 1,256 4,729 59,462 65,447
Financial assets at 31/12/2025 Assets at FVPL Assets at FVTO Assets at amortized cost Total Non-current financial assets 92 5,035 1,715 6,842 Trade receivables 0 0 40,399 40,399 Current financial assets 2,030 0 2,030 2,030 Other receivables 0 0 5,393 5,393 Total financial assets as per IFRS 7 2,122 5,035 47,507 54,664
Financial liabilities at 30/06/2026 Liabilities at FVPL Liabilities at FVTO Liabilities at amortized cost Total Non-current financial lease liabilities 0 0 4,942 4,942 Non-current financial payables 0 0 90,178 90,178 Total non -current financial liabilities 0 0 95,120 95,120 Current financial liabilities 0 0 8,539 8,539 Current financial lease liabilities 0 0 2,414 2,414 Current portion of non -current financial payables 0 0 14,160 14,160 Total current financial liabilities 0 0 25,112 25,112 Trade payables 0 0 50,736 50,736 Other non -current payables 0 0 8 8 Other payables 0 0 10,878 10,878 Total financial liabilities as per IFRS 7 0 0 181,854 181,854
Financial liabilities at 31/12/2025 Liabilities at FVPL Liabilities at FVTO Liabilities at amortized cost Total Non-current financial lease liabilities 0 0 6,035 6,035 Non-current financial payables 0 0 92,507 92,507 Total non -current financial liabilities 0 0 98,543 98,543 Current financial liabilities 0 0 4,695 4,695 Current financial lease liabilities 0 0 2,393 2,393 Current portion of non -current financial payables 0 0 10,305 10,305 Total current financial liabilities 0 0 17,394 17,394 Trade payables 0 0 34,883 34,883 Other non -current payables 0 0 8 8 Other payables 0 0 10,105 10,105 Total financial liabilities as per IFRS 7 0 0 160,931 160,931
42 Guarantees provided and other contractual commitments At June 30, 2026, the Group has not undertaken guarantees or contractual commitments beyond those reflected in the balance sheet.
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Notes to the Balance Sheet (1) Property, plants & equipment Category 30/06/2026 31/12/2025 Change Land & buildings 8,145 5,996 2,149 Plant & machinery 8,192 4,618 3,574 Other tangible assets 4,192 4,038 154 Assets in progress 3,900 7,941 (4,041) Total property, plant and equipment 24,429 22,593 1,836
The main investments made by the Group in the period totaled Euro 8,449 thousand and mainly concerned the “Land and buildings” and “Plant and machinery” categories.
“Land and buildings" increased by Euro 2,236 thousand following the purchase and installation by SECO S.p.A. of a new industrial facility, located in Monte San Savino (AR). The cost of “Plant and machinery” increased Euro 4,806 thousand as a result of the purchase of new production lines for this facility, in addition to the continual R&D investments to support the development of new projects and the updating to the latest sector technological standards.
The relative movements in the year are reported below:
Land &
buildings Plant &
machinery Other
tangible
assets Assets in
progress Total
Historical cost 31/12/2025 7,254 16,345 11,376 7,941 42,916 Increases 2,236 4,810 878 546 8,470 Decreases 0 (77) (1) (4,570) (4,648) Historical cost 30/06/2026 9,491 21,078 12,253 3,917 46,739 Accumulated depreciation 31/12/2025 (1,258) (11,727) (7,339) 0 (20,324) Depreciation (88) (1,233) (723) (17) (2,061) Decreases 0 75 0 0 75 Accumulated depreciation 30/06/2026 (1,346) (12,885) (8,062) (17) (22,310)
Net value 31/12/2025 5,996 4,618 4,038 7,941 22,592 Net value 30/06/2026 8,145 8,193 4,192 3,900 24,429
(2) Intangible assets Category 30/06/2026 31/12/2025 Change Development costs 31,169 32,115 (946) Software 28,864 31,111 (2,247) Customer list 26,730 27,390 (660) Other intangible assets 9,030 7,987 1,043 Assets in progress 7,211 2,694 4,517 Total intangible assets 103,004 101,297 1,707
The account increased by Euro 10,508 thousand in the period, mainly related to: i) the recognition of project development costs for “standard products” with long -term utility incurred during the period for Euro 9,004 thousand (development costs and assets in progress). The development costs of “custom products” (developed for a specific customer) are fully expensed in the period; ii) to the installation of
44 new software and the improvement of software already in use to support the parent company's business activities, which are recognized to the item Software and Other intangible assets in progress depending on the timing of the entry into service of the plat forms.
Movements during the period are shown below:
Category Net value 31/12/2025 Increases Decreases Amortization Net value
30/06/2026
Development costs 32,115 4,507 0 (5,453) 31,169 Software 31,111 (449) 0 (1,799) 28,864 Customer list 27,390 0 0 (660) 26,730 Other intangible assets 7,987 1,656 0 (613) 9,030 Assets in progress 2,694 4,817 (299) 0 7,211 Total intangible assets 101,297 10,531 (299) (8,525) 103,004
Capitalized costs recognized related to the development activities undertaken by the Group, and refer to development projects during the year. These development costs, which are expected to benefit the Group for several years, are posted to the assets of t he balance sheet, as the Group has ascertained that they will be useful in the future, there is an objective correlation between them and the related benefits that the Group will enjoy, and the recoverability of such costs can be reasonably estimated.
Deve lopment costs for the application of research are related to specific, clearly defined products or processes and are identifiable and measurable. The projects for which research is undertaken, are executable and technically feasible for which the Group has the necessary resources. Finally, these projects are considered recoverable, as the Group expects to earn revenues from them in excess of the costs incurred for the research and other development costs.
Assets in progress includes costs incurred in the period, or in previous years, for development activities in progress. The projects relate to clearly defined products or processes, which will be useful in the future;
there is an objective correlation with the related future benefits to be enjoyed by the Group and their recoverability can be estimated with reasonable certainty. These costs relate to development activities (i.e. the application of research results to other knowledge owned or acquired for the production of materials, devices, processes and systems) aimed at a specific standard product.
(3) Right -of-use Category 30/06/2026 31/12/2025 Change Land & buildings 5,647 7,000 (1,353) Plant & machinery 1,528 1,952 (423) Depreciation 618 (0) 618 Right -of-Use 7,794 8,952 (1,158)
The Right -of-use includes lease contracts for land and buildings, motor rental and machinery.
The increase, net of the effect of depreciation for the period, amounting to Euro 102 thousand, is mainly attributable to land and buildings as a result of the signing and adjustment of lease contracts for the facilities of the subsidiary SECO Northern Eur ope GmbH.
Changes in the right -of-use in the period are presented below:
45
Land &
buildings Plant & machinery Other tangible
assets Total
Historical cost 31/12/2025 13,510 6,261 367 20,138 Increases 102 0 0 102 Decreases 0 0 0 0 Reclassifications/Currency effects (541) (79) 689 69 Historical cost 30/06/2026 13,071 6,182 1,056 20,309
Accumulated depreciation
31/12/2025 (6,510) (4,310) (367) (11,186) Depreciation (914) (344) (70) (1,329) Decreases 0 0 0 0 Reclassifications 0 0 0 0
Accumulated depreciation
30/06/2026 (7,424) (4,654) (437) (12,515)
Net value 31/12/2025 7,000 1,952 (0) 8,952 Net value 30/06/2026 5,647 1,528 618 7,794
(4) Goodwill
Goodwill at June 30, 2026 and December 31, 2025 is shown below.
Category 30/06/2026 31/12/2025 Change Goodwill 157,108 157,108 0 Total Goodwill 157,108 157,108 0
The balance at June 30, 2026, amounting to Euro 157,108 thousand, is unchanged on the end of the previous year and is attributed to the cash generating units ("CGUs") as follows: i) Seco CGU for Euro 23,600 thousand; ii) Seco Northern Europe CGU for Euro 1 33,509 thousand.
The Directors, taking into account the results for the first half of 2026, the expectations for the second half of the year, in addition to the forecast market trends for subsequent fiscal years and the results of specific sensitivity analyses conducted on the impairment tests performed for the preparation of the financial statements as of December 31, 2025, have not identified any indicators of impairment in terms of the recoverability of goodwill as of June 30, 2026.
(5) Non-current financial assets Category 30/06/2026 31/12/2025 Change Non-current financial assets 1,896 1,807 89 Assets for derivative financial instruments 4,729 5,035 (307) Total non -current financial assets 6,625 6,842 (218)
Total non -current financial assets decreased from Euro 6,842 thousand at December 31, 2025 to Euro 6,625 thousand, a decrease of Euro 218 thousand.
The aggregate includes the effect of adjusting the "Mark to Market" value of derivative contracts to hedge interest rate risk on medium/long -term loans entered into by the Group, which amounted to Euro 4,729 thousand at June 30, 2026, a decrease of Euro 30 7 thousand compared to December 31, 2025.
46 Non-current financial assets include the special -purpose investment in Hangzhou Fannuo Intelligent Technology Co., Ltd., held by the subsidiary SECO Microelectronics Co., Ltd., for Euro 1,453 thousand.
(6) Deferred tax assets Category 30/06/2026 31/12/2025 Change Deferred tax assets 2,472 2,506 (34) Total deferred tax assets 2,472 2,506 (34)
Deferred tax assets, the recognition of which is subject to the reasonable certainty of their recoverability, as assessed by the Directors on the basis of the expected results of Group companies reflected in the business plans, are determined on the basis of the tax rates in force, corresponding to those that will apply when these differences will reverse. It should be noted that tax assets relating to the actuarial valuations of defined -benefit plans and the effects of consolidation adjustments are charged directly to equity.
Total deferred tax assets decreased from Euro 2,506 thousand at December 31, 2025 to Euro 2,472 thousand at June 30, 2026.
(7) Other non -current assets The total of Euro 1,993 thousand at June 30, 2026 (Euro 1,669 thousand at December 31, 2025) mainly includes the tax receivable due beyond one year for Industry 4.0 capital goods and for research and development.
(8) Inventories
Inventories at June 30, 2026 totaled Euro 82,427 thousand, increasing Euro 17,809 thousand on the previous year. The breakdown of this account is shown in the table below:
Category 30/06/2026 31/12/2025 Change Raw materials 58,295 44,457 13,838 Semi -finished products 14,695 14,682 13 Finished products 12,221 8,244 3,977 Advances to suppliers 1,335 1,154 181 Inventory obsolescence provision (4,119) (3,919) (200) Total Inventories 82,427 64,618 17,809
The increase in Inventories almost entirely concerned the increase in Raw materials of Euro 13,383 thousand, mainly due to higher purchase volumes of electronic components, particularly memories, so as to mitigate any impacts from price increases and/or pr oduct scarcity.
The inventory obsolescence provision is calculated to align the value of inventory with its estimated realizable value, recognizing where necessary its obsolescence and slow turnover. The increase in the provision is entirely attributable to the accrual ma de in the period.
(9) Trade receivables Category 30/06/2026 31/12/2025 Change Trade receivables 52,219 41,245 10,974 Doubtful debt provision (846) (846) 0
47
Total trade receivables 51,373 40,399 10,974
Trade receivables at June 30, 2025 amounted to Euro 51,373 thousand, increasing Euro 10,974 thousand compared to the end of the previous year. The doubtful debt provision was unchanged on the previous year.
Trade receivables include the receivable from the related party Laserwall for Euro 4,834 thousand (Euro 4,633 thousand as at December 31, 2025), which is subject to a monthly installment repayment plan.
Although Laserwall accumulated some delays in their monthly payments in 2025 and the first half of 2026, these occurred on a consistent basis and continued through August and into early September for a total of Euro 700 thousand. The Directors currently see no reason to consider that the receivable recogniz ed in the financial statements is uncollectible.
It is noted that there is only one customer whose turnover accounts for more than 10% of total revenue.
(10) Current financial assets Category 30/06/2026 31/12/2025 Change Current financial assets 1,164 2,030 (866) Total current financial assets 1,164 2,030 (866)
Current financial assets at June 30, 2026 amount to Euro 1,164 thousand. Current financial assets include short -term and readily liquid financial investments.
(11) Tax receivables Category 30/06/2026 31/12/2025 Change
VAT 3,763 1,605 2,158
Income taxes 3,840 3,964 (124) Others 162 450 (289) Total tax receivables 7,764 6,020 1,745
Tax receivables at June 30, 2026 amounted to Euro 7,764 thousand, increasing Euro 1,745 thousand compared to the end of the previous year. This increase is mainly due to the higher VAT receivable.
(12) Other receivables Category 30/06/2026 31/12/2025 Change Advances 338 147 191 Other receivables 4,397 3,843 554 Prepayments and accrued income 1,550 1,403 147 Total other receivables 6,285 5,393 892
Other receivables at June 30, 2026 amounted to Euro 6,285 thousand and increased Euro 892 thousand.
This increase is mainly due to the increase in Advances for Euro 191 thousand and of Other receivables
48 for Euro 554 thousand, due to the increased receivables for contributions to the research and development projects, such as the National Recovery and Resilience Plan (PNRR) funds Tender.
(13) Cash and cash equivalents This item includes the cash and cash equivalents of the companies included in the consolidation scope.
Category 30/06/2026 31/12/2025 Change Cash 13 14 (0) Current accounts 60,542 61,643 (1,101) Other liquidity 0 5,000 (5,000) Total cash and cash equivalents 60,556 66,657 (6,101)
Other liquidity concerns a time deposit that can be divested rapidly.
Refer to the consolidated cash flow statement for an analysis of changes in financial resources.
For further details, please refer to the "Liquidity Risk" paragraph above.
(14) Equity
Movements in and breakdown of equity are shown in the Statement of Changes in Consolidated Equity, to which reference should be made.
SHARE CAPITAL - At June 30, 2026, the authorized share capital totaled Euro 1,296,944.48 and was divided into 133,021,117 shares. The paid -up share capital at June 30, 2026 amounted to Euro 1,296,944.48.
LEGAL RESERVE - The legal reserve, amounting to Euro 289 thousand at June 30, 2026, is unchanged from December 31, 2025.
SHARE PREMIUM RESERVE - The share premium reserve, amounting to Euro 232,036 thousand at June 30, 2026, remained unchanged on December 31, 2025.
OTHER RESERVES - Other reserves, amounting to Euro 41,034 thousand at June 30, 2026, refer for:
• Euro 25,062 thousand (Euro 27,763 thousand at December 31, 2025) to non -distributable reserves;
• Euro 16,513 thousand (Euro 14,063 thousand at December 31, 2025) to the accounting of the incentive plans granted to employees subject to the retention of the employment relationship at the end of the vesting period.
• negative Euro 4,135 thousand (negative Euro 4,135 thousand at December 31, 2025) to the treasury share purchase plan reserve. The number of treasury shares held by the Company at June 30, 2026 was 522,898 shares, which were tied to the purchase of the shar es of the minority shareholders in SECO Mind S.r.l. (now Clea S.r.l);
• Positive Euro 3,595 thousand (Euro 3,828 thousand at December 31, 2025) to the cash flow hedge reserve.
TRANSLATION RESERVE - The translation reserve, a positive Euro 418 thousand at June 30, 2026, includes exchange differences from the translation of the financial statements of the foreign subsidiaries.
FTA RESERVE - The First -Time Adoption reserve related to the adoption of international accounting standards, which was negative for Euro 371 thousand at June 30, 2026, is unchanged from December 31, 2025.
49
RESERVE FOR LOSSES RECORDED IN OCI - The reserve, positive for Euro 299 thousand at June 30, 2026, includes the result of discounting employee benefits.
Minorities Equity
Minorities equity amounted to Euro 25,029 thousand at June 30, 2026 and consists of minority interests in:
• SECO Asia Limited, which is 49% owned by third parties;
• SECO Microelectronics, 49% owned by third parties;
• Fannal Electronics Co. Ltd, owned 72% by third parties;
Reconciliation Parent Company and Consolidated equity and result Category Share capital and reserves Net profit Equity Equity SECO SpA (265,972) 1,945 (264,027) Net result and equity of the consolidated companies (60,494) (4,312) (64,806) Elimination carrying amount of equity investments 135,984 0 135,984 PPA Fannal Electronics (2,971) 0 (2,971) PPA InHand Electronics (1,656) 0 (1,656)
PPA SECO Mind (2,269) 0 (2,269)
PPA Garz&Fricke Group (100,557) 462 (100,095)
PPA Seco BH DOO (36) 0 (36)
Elimination effects of inter -company transactions 21 189 210 Dividends distributed 0 0 0 Reserves and profit on non -controlling interests 22,948 2,082 25,029 Group Equity (275,002) 365 (274,637) Equity attributable to Non -Controlling Interests (22,948) (2,082) (25,029) Total Equity (297,949) (1,717) (299,666) (15) Employee benefits Category 30/06/2026 31/12/2025 Change Post-employment benefit provision employees (3,522) (3,366) (156) Post-employment benefit provision directors (142) (104) (38) Total employee benefits (3,664) (3,470) (194)
The account includes the post -employment benefit payable and the Group’s post -employment benefit payable matured by the Directors and the employees of the Italian companies at June 30, 2026. The overseas companies do not recognize employee benefits or othe r components attributable to long -
term benefits.
The director’s and employee post -employment benefit payables increased by Euro 194 thousand on December 31, 2025.
(16) Provisions for risks Category 30/06/2026 31/12/2025 Change Agent’s supplementary indemnity provision (17) (17) 0 Others (1,202) (1,192) (10) Total other risks (1,219) (1,209) (10)
50
The total consists of the provision for supplementary indemnity amounting to Euro 17 thousand and "Other”, which is mainly composed of the provision for product warranty relating to SECO Northern Europe.
(17) Deferred tax liabilities At June 30, 2026, deferred tax liabilities totaled Euro 23,115 thousand. The item mainly includes the deferred tax liabilities arising from the purchase price allocation on the transaction for the transfer of the business unit from Camozzi Digital S.r.l a nd the Garz&Fricke customer list. Compared to December 31, 2025, the account decreased Euro 657 thousand.
(18) Non-current financial payables Category 30/06/2026 31/12/2025 Change Non-current financial payables (90,178) (92,507) 2,329 Total non -current financial payables (90,178) (92,507) 2,329
This item refers to the medium/long -term portion of outstanding loans. In line with market practice for borrowers of similar credit standing, the main financing agreements call for meeting certain financial covenants, based on which the Group is committed to meeting certain financial indicators defined by contract, the most significant of which is the ratio of net debt to EBITDA, measured at the consolidated level as defined in the agreements with the lenders. These covenants, stipulated in the contracts wi th the credit institutions, are calculated annually.
It should also be noted that: the current and non -current loans payable, contracted by the Company for the acquisition of the Garz & Fricke Group (now renamed SECO Northern Europe), granted by a bank syndicate (Unicredit S.p.A., Intesa San Paolo S.p.A., Ba nco BPM S.p.A. and Banca Nazionale del Lavoro S.p.A.) for a total value at June 30, 2026 of Euro 91,104 thousand are counter -guaranteed by the shares of the acquired company; the loan (current and non -current) granted by the bank Monte dei Paschi di Siena S.p.A. for a total value as of June 30, 2026 of Euro 1,376 thousand is secured by a mortgage on the building located in Arezzo; the loans (current and non -current) taken out by the Company for the construction of the new production plant at Monte San Savin o (AR), granted by Unicredit S.p.A. and Intesa San Paolo S.p.A for a total value at June 30, 2026 of Euro 9,480 thousand, are not counter -guaranteed by secured guarantees.
(19) Non-current financial lease liabilities Category 30/06/2026 31/12/2025 Change Non-current financial lease liabilities (4,942) (6,035) 1,094 Total Non -current financial lease liabilities (4,942) (6,035) 1,094
The account refers to the present value of the medium/long term portion of the financial liabilities assumed by the Group as a result of accounting for lease and rental agreements in accordance with IFRS 16.
The movement in the period primarily relates to the settlement of the installments stipulated in the contracts.
51
(20) Other non -current payables Category 30/06/2026 31/12/2025 Change Other non -current payables (8) (8) 0 Total other non -current payables (8) (8) 0
Other non -current payables at June 30, 2026 mainly include security deposits and is unchanged on December 31, 2025.
(21) Current financial liabilities Category 30/06/2026 31/12/2025 Change Current financial liabilities (8,539) (4,695) (3,844) Total current financial liabilities (8,539) (4,695) (3,844)
The account includes credit lines, current account overdrafts, credit card payables, payables for advances on invoices and short -term loans falling due within one year for operational purposes existing at June 30, 2026.
(22) Current portion of non -current financial payables Category 30/06/2026 31/12/2025 Change Current portion of non -current financial payables (14,160) (10,305) (3,854) Total current portion of non -current financial payables (14,160) (10,305) (3,854)
The account includes the instalments on existing loans due in the next 12 months.
(23) Current finance lease liabilities Category 30/06/2026 31/12/2025 Change Current financial lease liabilities (2,414) (2,393) (20) Total current financial lease liabilities (2,414) (2,393) (20)
The account includes the present value of installments due within the next 12 months in relation to lease and rental agreements entered in accordance with IFRS 16.
(24) Trade payables Category 30/06/2026 31/12/2025 Change Trade payables (50,736) (34,883) (15,854) Total trade payables (50,736) (34,883) (15,854)
The account includes accounts payable for production supplies, capital expenditures and services received at June 30, 2026. This item increased Euro 15,854 thousand on December 31, 2025, primarily due to higher purchase volumes of electronic components to offset the negative impact of potential price increases and/or product shortages.
(25) Other current liabilities
52 Category 30/06/2026 31/12/2025 Change Accrued liabilities (1,849) (869) (979) Payables to social security institutions and personnel (6,309) (6,699) 391 Other payables (1,640) (1,170) (470) Advances - contract liabilities (1,080) (1,367) 287 Total other current liabilities (10,878) (10,105) (773)
This item increased Euro 773 thousand on December 31, 2025, primarily due to the Accrued liabilities related to the recognition of capital grants under the “Industria 5.0” tax credit.
(26) Tax payables Category 30/06/2026 31/12/2025 Change Income tax payables (2,126) (1,591) (536) Amounts due to tax authorities (1,349) (643) (705) Total Tax payables (3,475) (2,234) (1,241)
The account "Income tax payables" includes the tax liabilities recorded in the financial statements of the individual consolidated companies, set aside in relation to the tax charges pertaining to the individual companies on the basis of the applicable nat ional legislation. Amounts due to tax authorities primarily refer to withholding taxes on employee income, severance indemnities and consultants.
53
Notes to the income statement (27) Sales revenues Category 30/06/2026 30/06/2025 Change Change %
EMEA 76,650 72,803 3,847 5.28%
of which Italy 39,291 38,898 392 1.01%
- of which Germany 23,621 25,585 (1,963) -7.67%
USA 12,897 15,063 (2,167) -14.38%
APAC 9,135 8,313 822 9.88%
Rest of the world 38 2,221 (2,183) -98.30% Revenues by region 98,719 98,401 319 0.32%
Sales revenues, which were substantially stable, rose from Euro 98,401 thousand in H1 2025 to Euro 98,719 thousand in H1 2026, increasing 0.32% on the same period in the previous year. The movement on the first half of the previous year is due to a differi ng growth mix in the various regions in which the Group operates. In particular, in the EMEA region sales in the first half of 2026 totaled Euro 76,650 thousand, compared to Euro 72,803 thousand in the same period in the previous year. Despite the contract ion from the decline in customer volumes, operating particularly in the Vending sector and the Entertainment sector, growth stemmed from the higher volumes from customers in the Automation and Medical sectors. USA revenues decreased from Euro 15,063 thousa nd in H1 2025 to Euro 12,897 thousand in H1 2026, with the contraction relating to the lower sales volumes to Group customers operating in the Medical and Industrial Automation sectors. In the APAC area, revenues rose from Euro 8,313 thousand in H1 2025 to Euro 9,135 thousand in H1 2026 as a result of better performances, particularly related to Industrial Automation sector customers.
(28) Other income and revenues Other revenues and income amounted to Euro 1,109 thousand in H1 2026, compared to Euro 1,321 thousand in the same period of 2025.
Category 30/06/2026 30/06/2025 Change Change % Operating grant tax credit R&D 324 410 (86) -20.95% Capital grant tax credit Industry 4.0 138 356 (218) -61.23% Capital grant tax credit Industry 5.0 260 0 260 0.00% Other operating grants 238 238 (0) -0.06% Other revenues and income 149 317 (168) -52.94% Total other revenues and income 1,109 1,321 (212) -16.06%
This account mainly includes:
• the operating grant tax credit for research and development amounting to Euro 324 thousand (Euro 410 thousand at June 30, 2025);
• to the portion for the period of the capital grant tax credit for the purchase by SECO S.p.A. of capital goods under “Industry 4.0” amounting to Euro 138 thousand (Euro 356 thousand at June
30, 2025);
• to the portion for the period of the capital grant tax credit for the purchase by SECO S.p.A. of capital goods under “Industry 5.0” amounting to Euro 260 thousand;
• the pro -rata contribution related to the Group's participation in the tenders for the “SAAM SECO AI Apps Market” project for Euro 224 thousand.
54 (29) Raw materials, ancillary, consumables and goods Costs of raw materials, ancillary, consumables and goods for resale amounted to Euro 62,743 thousand in H1 2026, compared to Euro 46,399 thousand in the same period of the previous year, an increase of Euro 16,344 thousand. This increase is primarily attri butable to higher purchase volumes of electronic components (particularly memory) in light of the current supply chain environment, so as to offset the impact of potential price increases and/or product shortages.
(30) Service costs Category 30/06/2026 30/06/2025 Change Transport costs 1,939 1,843 96 Commission costs 410 553 (143) Rentals and operating leases 1,657 1,540 117 Maintenance costs 259 255 4 Consultancy costs 3,954 3,953 1 Bank charges 53 52 1 Administrative and utility costs 1,382 1,393 (10) Other taxes 193 234 (41) Outsourcing costs 1,142 1,552 (410) Marketing costs 698 793 (95) Insurance costs 445 310 135 Service costs 12,133 12,478 (345)
Service costs amounted to Euro 12,133 thousand in H1 2026, compared to Euro 12,478 thousand in H1 2025. This category increased by Euro 345 thousand, primarily attributable to:
• Transport costs: Euro 1,939 thousand in the first half of 2026, an increase of Euro 96 thousand on the same period of the previous year. The increase is primarily attributable to the Group’s higher
purchase volumes;
• Commission costs: Euro 410 thousand in the first half of 2026, compared with Euro 553 thousand in the same period of the previous year. The decrease primarily reflects the alteration in brokered sales and the related mix of customers and sales channels;
• Rental and operating leases: Euro 1,657 thousand in the first half of 2026, compared with Euro 1,540 thousand for the same period of the previous year, an increase of Euro 117 thousand, mainly attributable to software license fees;
• Outsourcing costs: Euro 1,142 thousand in the first half of 2026, a decrease of Euro 410 thousand on the same period of the previous year. This decrease is attributable to the differing breakdown of production activities and the reduced use of outsourcing in the period;
• Marketing costs: Euro 698 thousand in the first half of 2026, decreasing Euro 95 thousand on the same period of the previous year. The decrease is primarily due to the different timing of promotional and commercial initiatives and the altered mix of market ing activities carried out in
the period;
• Insurance costs: Euro 445 thousand in the first half of 2026, compared with Euro 310 thousand in the same period of the previous year. The increase is attributable to adjustments in insurance premiums and, more generally, to higher coverage costs, partly d ue to developments in the insurance market and the strengthening of coverage to protect against business risks.
(31) Personnel costs Category 30/06/2026 30/06/2025 Change Wages and salaries 15,669 13,935 1,734
55
Social security expenses 4,270 3,678 592 Post-employment benefit provision 747 574 173 Other personnel costs 3,013 3,565 (552) Total personnel costs 23,699 21,752 1,947
Personnel costs in H1 2026 totaled Euro 23,699 thousand, increasing Euro 1,947 thousand on the same period of the previous year. The increase is mainly due to the costs related to the expanded Group workforce, for the hire of key figures in the period to support the R&D, production and sales development plans.
(32) Amortization and Depreciation Amortization and depreciation increased from Euro 11,131 thousand in H1 2025 to Euro 11,915 thousand in H1 2026, an increase of Euro 784 thousand, mainly as a result of the increased amortization of development costs and of the depreciation of plant and ma chinery in view of the Group investments in new production plant.
(33) Doubtful debt provision and provisions for risks and charges This item amounted to Euro 10 thousand in the first half of 2026 (same as the previous year). It includes a provision for the costs of renovating the building leased by Seco Northern Europe.
(34) Other operating costs Category 30/06/2026 30/06/2025 Change Directors' fees and related charges 1,389 1,891 (501) Board of Statutory Auditors’ fees 84 75 9 Travel and transfer costs 75 68 7 Losses on receivables 5 18 (12) Other operating costs 1,025 671 354 Total other operating costs 2,579 2,722 (143)
Other operating costs totaled Euro 2,579 thousand in H1 2026, a decrease of Euro 143 thousand on the same period of the previous year. This movement is primarily due to: (i) “Directors’ fees and related charges”, which decreased Euro 501 thousand compared to the same period of the previous year, mainly in view of the recognition of the lower costs associated with the stock option plans granted to Directors; (ii) an increase in “Other operating costs” of Euro 354 thousand on the same period of the previous year. This item includes residual, non -financial operating costs that may not be classified to other production cost categories.
(35) Financial income and charges Category 30/06/2026 30/06/2025 Change Finance income (1,219) (1,801) 582
Financial income amounted to Euro 1,219 thousand in H1 2026, decreasing Euro 582 thousand on the first half of the previous year, mainly due to the lower interest income on derivative contracts.
Category 30/06/2026 30/06/2025 Change Interest charges on loans 2,314 2,603 (289)
56 IFRS 16 interest charges 75 84 (10) Other financial charges 207 585 (378) Total financial charges 2,596 3,272 (677)
Total financial charges decreased from Euro 3,272 thousand in H1 2025 to Euro 2,596 thousand in H1 2026. This decrease was mainly due to interest charges on short -term credit lines and on the medium/long -term bank debt.
(36) Income taxes Category 30/06/2026 30/06/2025 Change
IRES 63 70 (7)
IRAP 497 424 73
Foreign taxes 632 917 (285) Taxes from previous years 96 40 56 Deferred tax income/charges (691) (578) (113) Other taxes for the period 0 0 0 Total income taxes 597 873 (276)
Income taxes in the period were recognized on the basis of the best estimate of the average weighted annual tax rate expected for the full year.
57
Related party transactions In accordance with the provisions of IAS 24, the following entities are considered Related Parties: (a) companies that directly or indirectly through one or more intermediate companies, control, or are controlled or are under common control with the report ing entity; (b) associated companies; (c) natural persons who directly or indirectly have voting power in the reporting entity that gives them a dominant influence over the company and their immediate family members; (d) senior executives, i.e. those who have the power and responsibility for planning, directing and controlling the activities of the reporting entity, including directors and officers of the company and the immediate family members of such persons; (e) companies in which any natural person des cribed under (c) or (d) has, directly or indirectly, significant voting power, or over which such person has such power. Case (e) includes undertakings owned by the directors or major shareholders of the reporting entity and undertakings which have a manag er with strategic responsibilities in common with the reporting entity.
A list of related parties is provided below, indicating the type of relationship:
Type List of Related parties Type and main nature of relationship Legal person Consortium Ubiquitous Technologies S.c.a.r.l (CUBIT) Company 22.5% owned by the Parent Company Legal person SECO Northern Europe Holding GMBH wholly -owned subsidiary of the Parent Company Legal person SECO Northern Europe GMBH Subsidiary held 27% by the Parent Company and remainder 73% indirect shareholding via the subsidiary SECO Northern Europe Holding GMBH Legal person SECO Mind Germany GMBH Subsidiary of the Parent Company with a 100% indirect shareholding via the subsidiary SECO Northern Europe GMBH Legal person e-GITS India Private Ltd. (Chennai, India) Subsidiary of the Parent Company with a 100% indirect shareholding via the subsidiary SECO Mind
Germany GMBH
Legal person SECO USA, Inc. wholly -owned subsidiary of the Parent Company Legal person SECO Asia Limited 51% subsidiary owned by the Parent Company Legal person SECO Microelectronics Co., Ltd. Subsidiary of the Parent Company with a 100% indirect equity investment through the subsidiary SECO ASIA Limited Legal person Hangzhou Fannuo Intelligent Technology Co., Ltd. Company in which the subsidiary SECO Microelectronics Co., Ltd. holds a special -purpose
investment
Legal person Fannal Electronics Co., Ltd Subsidiary of the Parent Company with a 55% indirect equity investment through the subsidiary SECO ASIA Limited Legal person Clea Srl wholly -owned subsidiary of the Parent Company Legal person PSM Tech S.r.l. wholly -owned subsidiary of the Parent Company Legal person SECO BH d.o.o. wholly -owned subsidiary of the Parent Company Legal person Fondo Italiano d'Investimento SGR S.p.A. 4.47% shareholder of the Parent Company Legal person 7-Industries 11.33% shareholder of the Parent Company Legal person DSA S.r.l. 16.51% shareholder of the Parent Company, 100% controlled by Conti Daniele Legal person HSE S.r.l. 16.48% shareholder of the Parent Company, 100% controlled by Secciani Luciano Legal person HCS S.r.l. 7.34% shareholder of the Parent Company, 50% controlled by Secciani Luciano and 50% by Conti
Daniele
58 Legal person Camozzi Group S.p.A. 8.27% shareholder of the Parent Company Legal person Olivetti S.p.A. 7.73% shareholder of the Parent Company Legal person Laserwall S.r.l. Company 16.87% owned by SECO S.p.A.
Legal person LAE S.r.l. Sole Director Massimo Mauri, Director and CEO of the Parent company Legal person Simest S.p.A. 49% shareholder of Seco Asia Limited Legal person Peter Pan Holding S.r.l. Company in which the Group’s managing director, Massimo Mauri, directly or indirectly holds a stake with voting rights of greater than or equal to 20%.
Legal person Lomarini & Lomarini Consultants S.r.l. Company controlled by the director Luciano
Lomarini
Legal person EQValue Guzzo Pierpaolo, a 37.5% shareholder of the company EQValue S.r.l. and Standing Auditor of the Board of Statutory Auditors of the Issuer;
Legal person Big Partners S.r.l. Company in which the Statutory Auditor, Pierpaolo Guzzo, holds a stake with voting rights of greater than or equal to 20%.
Legal person BC S.a.s. Company in which the Statutory Auditor, Micaela Badiali, holds a stake with voting rights of greater than or equal to 20%.
Legal person Badiali & Partners Studio Associato Company in which the Statutory Auditor, Micaela Badiali, holds a stake with voting rights of greater than or equal to 20%.
Legal person Cantina La Cava Az. Agr. Company controlled by the director Kurt Tosja
Zywietz
Legal person Primomarzo S.r.l. Company controlled by the Company's Independent Director Anna Zattoni Legal person Jointly il welfare condiviso S.r.l. Company controlled by the Company's Independent Director Anna Zattoni Natural person Daniele Conti Chairperson of the Board of Directors of the Parent Company, appointed on 29/04/2024 Natural person Massimo Mauri Chief Executive Officer of the Parent Company, appointed on 29/04/2024 Natural person Claudio Catania Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Luciano Lomarini Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Michele Secciani Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Kurt Tosja Zywietz Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Valentina Montanari Independent Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Anna Zattoni Independent Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Valentina Beatrice Manfredi Independent Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Paolo Lavatelli Independent Director of the BoD of the Parent Company, appointed on 29/04/2024 Natural person Lorenzo Mazzini Legal representative and Executive Officer for Financial Reporting of the Parent Company
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Natural person Davide Catani Legal representative and Chief Technology Officer of the Parent Company Natural person Vincenzo Difronzo Legal representative and Chief Sales Officer of the
Parent Company
Natural person Cesare Beolchi Chairperson of the Board of Statutory Auditors of the Parent Company, appointed on 29/04/2024 Natural person Pierpaolo Guzzo Statutory Auditor of the Parent Company, appointed on 29/04/2024 Natural person Micaela Badiali Statutory Auditor of the Parent Company, appointed on 29/04/2024 Natural person Prospero Accogli Alternate Auditor of the Parent Company, appointed on 29/04/2024 Natural person Edda Delon Alternate Auditor of the Parent Company, appointed on 29/04/2024
Transactions carried out with related parties are part of the ordinary course of business of the companies and have been regulated at market conditions. No atypical or unusual transactions were recorded.
The balance sheet and income statement effects of the transactions have been eliminated in the consolidation process. Details of transactions with related parties are provided on the following page.
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Balance Sheet accounts CUBIT S.c.a.r.l Board of Directors Board of
Statutory
Auditors SB and
Internal
Committees Laserwall Camozzi Total Total book value % on total
account
items
Non-current financial assets 65 0 0 0 0 0 65 6,625 0.98% Trade receivables 87 0 0 0 4,834 0 4,921 51,373 9.58% Other receivables 0 510 0 0 0 0 510 6,285 8.11% Employee benefits 0 142 0 0 0 0 142 3,664 3.87% Trade payables 70 0 0 36 0 0 106 50,736 0.21% Other payables 0 78 0 0 0 0 78 10,878 0.71%
Income Statement accounts CUBIT S.c.a.r.l Board of Directors Board of
Statutory
Auditors SB and
Internal
Committees Laserwall Camozzi Total Total book value % on total
account
items
Net sales 0 0 0 0 434 700 1,134 98,719 1.15% Other revenues and income 0 0 0 0 - 0 - 1,109 0.00% Raw materials, ancillaries, consumables and goods 5 0 0 0 0 0 5 62,743 0.01% Service costs 44 0 0 0 0 0 44 12,133 0.37% Other operating costs 0 1,243 73 36 0 0 1,352 2,579 52.42%
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Remuneration of Directors, Statutory Auditors and independent audit firm The fees in H1 2026 of the Board of Directors of the Parent Company totaled Euro 743 thousand (Euro 430 thousand in H1 2025), while those of the Board of Statutory Auditors totaled Euro 73 thousand (Euro 55 thousand in H1 2025). The company also recognized a charge of Euro 1,908 thousand in relation to incentive plans (Euro 3,233 thousand in the first half of 2025).
Fees paid to the independent audit firm for the limited audit of the consolidated financial statements totaled Euro 32 thousand in H1 2026 (Euro 31 thousand in H1 2025). Additional certification services for Euro 11 thousand were carried out.
Subsequent events
It should be noted, in accordance with IAS 10(9), that no events have occurred from June 30, 2026, to the date of approval of this financial report that could have a significant impact on the financial performance or standing as presented herein.
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6. DECLARATION OF THE HALF -YEAR
FINANCIAL REPORT PURSUANT TO
ARTICLE 81 -TER OF CONSOB
REGULATION NO. 11971 OF MAY 14,
1999 AND SUBSEQUENT AMENDMENTS
AND SUPPLEMENTS
1. The undersigned Massimo Mauri, Chief Executive Officer, and Lorenzo Mazzini, Executive Officer for Financial Reporting, of SECO S.p.A. declare, also in consideration of Article 154 -bis, paragraphs 3 and 4, of Legislative Decree No. 58 of February 24, 1998:
o the adequacy considering the company’s characteristics and o the effective of the administrative and accounting procedures for the compilation of the condensed consolidated half -year financial statements in 2025.
2. They also declare that the half -year financial report:
o correspond to the underlying accounting documents and records;
o were prepared in accordance with international accounting standards, recognized in the European Union pursuant to EU Regulation No. 1606/2002 of the European Parliament and Council of July 19, 2002;
o provide a true and fair view of the equity and financial position and of the operating performance of the issuer and of the other companies in the consolidation scope.
3. The Directors’ Report includes a reliable analysis on the performance and operating result, in addition to the situation of the Company and of the companies included in the consolidation, together with an outline of the main risks and uncertainties to whic h they are exposed. It also presents a reliable analysis of the significant transactions with related parties.
Arezzo, September 8, 2026 Chief Executive Officer Executive Officer for
Financial Reporting
Massimo Mauri Lorenzo Mazzini
Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona Sede Legale: Via Santa Sofia, 28 - 20122 Milano | Capitale Sociale: Euro 10.688.930,00 i.v.
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166 Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi ai clienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo www.deloitte.com/about.
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REPORT ON REVIEW OF THE HALF-YEARLY CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
To the Shareholders of Seco S.p.A.
Introduction
We have reviewed the accompanying half-yearly condensed consolidated financial statements of Seco S.p.A. and its subsidiaries (the “Seco Group”), which comprise the consolidated balance sheet as of June 30, 2026 the consolidated income statement, the consolidated comprehensive income statement, the consolidated statement of changes in equity and the consolidated cash flow statement for the six month period then ended, and a summary of significant accounting policies and other explanatory notes. The Directors are responsible for the preparation of the half-
yearly condensed consolidated financial statements in accordance with the International Accounting Standard applicable to the interim financial reporting (IAS 34 as issued by the International Accounting Standards Board and adopted by the European Union. Our responsibility is to express a conclusion on the half-yearly condensed consolidated financial statements based on our review.
Scope of Review We conducted our review in accordance with the criteria recommended by the Italian Regulatory Commission for Companies and the Stock Exchange (“Consob”) for the review of the half-yearly financial statements under Resolution n° 10867 of July 31, 1997. A review of half-yearly condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
2
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying half-yearly condensed consolidated financial statements of the Seco Group as of June 30, 2026 are not prepared, in all material respects, in accordance with the International Accounting Standard applicable to the interim financial reporting (IAS 34) as issued by the International Accounting Standards Board and adopted by the European Union.
DELOITTE & TOUCHE S.p.A.
Signed by
Neri Bandini
Partner
Florence, Italy
September 10, 2026 This independent auditor’s report has been translated into the English language solely for the convenience of international readers. Accordingly, only the original text in Italian language is authoritative.