Biesse S p A : INTERIM REPORT AT 30 JUNE 2023

Interim Report as at 30 June 2023

Biesse S.p.A.

INTERIM REPORT AS AT 30 JUNE 2023
THE BIESSE GROUP	4
BIESSE GROUP STRUCTURE	4
BIESSE GROUP PROFILE	5
ALTERNATIVE PERFORMANCE INDICATORS	5
FINANCIAL HIGHLIGHTS	6
COMPOSITION OF CORPORATE BODIES	9
DIRECTORS' REPORT ON OPERATIONS	10
GENERAL ECONOMIC OVERVIEW	10
BUSINESS SECTOR REVIEW	12
TREND IN THE FIRST HALF OF 2023	13
MAIN EVENTS OF THE HALF-YEAR	14
INCOME STATEMENT HIGHLIGHTS	15
STATEMENT OF FINANCIAL POSITION HIGHLIGHTS	17
SEGMENT REPORTING	19
TRANSACTIONS WITH ASSOCIATES, PARENTS AND THE LATTER'S SUBSIDIARIES	19
OTHER RELATED-PARTY TRANSACTIONS	19
"ATYPICAL AND/OR UNUSUAL" TRANSACTIONS OCCURRED DURING THE SIX-MONTH PERIOD	19
SIGNIFICANT EVENTS AFTER THE REPORTING DATE AND FULL-YEAR OUTLOOK	20
CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2023	23
CONSOLIDATED INCOME STATEMENT	23
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	25
CONSOLIDATED STATEMENT OF CASH FLOWS	26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	27
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	28
1. GENERAL INFORMATION	28

2. STATEMENT OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AND

GENERAL STANDARDS	30
3. MEASUREMENT CRITERIA AND USE OF ESTIMATES	33
4.	ADOPTION OF NEW ACCOUNTING STANDARDS, AMENDMENTS AND IFRS INTERPRETATIONS	34
5.	REVENUE AND ANALYSIS BY OPERATING SEGMENT AND GEOGRAPHICAL AREA	36
6.	SEASONALITY	38
7.	PERSONNEL EXPENSE	38
8.	EXCHANGE RATE GAINS AND LOSSES	38
9.	TAXES	38
10.	EARNINGS PER SHARE	39
11.	DIVIDENDS	39
12.	PROPERTY, PLANT, MACHINERY AND OTHER TANGIBLE AND INTANGIBLE ASSETS	39
13.	GOODWILL	40
14.	INVENTORIES	40
15.	TRADE RECEIVABLES FROM THIRD PARTIES	40
16.	SHARE CAPITAL AND TREASURY SHARES	41

Page 2of 46

17.	HEDGING AND TRANSLATION RESERVES	41
18.	OTHER RESERVES	41
19.	FINANCIAL LIABILITIES	41
20.	TRADE PAYABLES	41
21.	CONTRACT LIABILITIES	42
22.	COMMITMENTS, CONTINGENT LIABILITIES AND FINANCIAL RISK MANAGEMENT	42
23.	CLASSIFICATION OF FINANCIAL INSTRUMENTS	44
24.	SIGNIFICANT EVENTS AFTER THE REPORTING DATE	44
25.	RELATED-PARTY TRANSACTIONS	45
INDEPENDENT AUDITORS' REPORT AS AT 30/06/2023 …………………………………………………………………………. 47

Page 3of 46

THE BIESSE GROUP

BIESSE GROUP STRUCTURE

The following companies belong to the Biesse Group and are included in the scope of consolidation:

Note: The different colours represent the subgroups of the control chain

Page 4of 46

BIESSE GROUP PROFILE

The Biesse Group is a multinational manufacturer of integrated lines and machines for the processing of wood, glass, stone, plastics and composites. Founded in Italy in 1969 and listed on the Euronext Star segment of the Italian Borsa Italiana stock exchange since June 2001, the Biesse Group supports the business development of its customers in the furniture, automotive and aerospace sectors. Today, around 80% of its consolidated turnover is generated abroad, thanks to an ever-expanding worldwide network with 4 production sites and over 30 showrooms covering more than 160 countries. Thanks to the expertise of around 4,100 employees, leading companies in their sectors and the most respected names in Italian and international design are inspired to unlock the potential of every material.

Compared to the consolidated financial statements as at 31 December 2022, there are no changes in the scope of consolidation.

ALTERNATIVE PERFORMANCE INDICATORS

Management uses some performance indicators, which are not identified as accounting measures under the IFRS (non-GAAP measures), to better assess the Biesse Group's performance. The criterion applied by the Biesse Group to set these indicators might not be the same as that adopted by other groups, and the indicators might not be comparable with those set by the latter. These performance indicators, which were set in compliance with the Guidelines on performance indicators issued by ESMA/2015/1415 and adopted by CONSOB with its communication No. 92543 of 3 December 2015, refer to performance in the accounting period covered by this interim report and the previous year used for comparison.

Performance indicators are to be regarded as complementary to and not a substitute for financial data prepared in accordance with IFRS. Hereafter is a description of the main indicators adopted.

• Value Added: this indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, costs and revenues arising from transactions that Management considers as non- recurring relative to the Biesse Group's ordinary operations, as well as personnel expense.
• Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation): this indicator is defined as the Profit (Loss) for the period before income taxes, finance income and expense, exchange rate gains and losses, amortisation of intangible assets, depreciation of property, plant and equipment, impairment losses on fixed assets, allocations to provisions for risks and charges, as well as costs and revenues arising from transactions that Management considers as non-recurringrelative to the Biesse Group's ordinary operations.
• Adjusted EBIT (Adjusted Earnings Before Interest and Taxes): this indicator is defined as the Profit (Loss) for the year before income taxes, finance income and expense, exchange rate gains and losses, impairment losses on fixed assets, as well as costs and revenues arising from transactions that Management considers as non-recurringrelative to the Biesse Group's ordinary operations.
• Operating Profit or EBIT (Earnings Before Interest and Taxes): this indicator is defined as Profit (Loss) for the year before income taxes, financial income and expenses, and foreign exchange losses and gains.
• Net Operating Working Capital: this indicator is calculated as the total of Inventories, Trade receivables, net of Trade payables and Contract liabilities.
• Net Working Capital: this indicator is calculated as the total of Net Operating Working Capital and other Current Assets and Liabilities, including Provisions for short-term risks and charges.
• Net Invested Capital: this indicator represents the total of Current and Non-Current Assets, excluding financial assets, net of Current and Non-Current Liabilities, excluding financial liabilities.
• Net financial position: this indicator is calculated in compliance with the provisions contained in Communication No. 5/21 of 29 April 2021 issued by Consob, which refers to the ESMA Recommendations of 4 March 2021.

Page 5of 46