Consolidated Interim Financial Report as at June 30, 2025

as of 30 June 2025

Prepared in compliance with International Financial Reporting Standards approved by the European Union

THE B&C SPEAKERS GROUP - Corporate bodies 3

Introduction to the consolidated interim financial report at 30 June 2025 4

Report on operations for the half ending on 30 June 2025 5

Condensed consolidated interim financial statements at 30 June 2025 14

Notes to the condensed consolidated interim financial report at 30 June 2025 prepared in conformity with the IFRSs adopted by the European Union 18

Certification of the Condensed Consolidated Interim Financial Statements under the terms of Art. 154-bis of Italian Legislative Decree 58/98 43

Independent Auditors' Report44

The present file is available on the Internet at the address:

https://www.bcspeakers.com

B&C Speakers S.p.A.

Registered Office in Bagno a Ripoli (FI), Italy at Via Poggiomoro 1 Paid-up share capital of € 1,100,000

Florence Business Register - Tax ID 01398890481

Board of Directors

Chairperson: Roberta Pecci

Chief Executive Officer: Lorenzo Coppini

Director: Alessandro Pancani

Director: Francesco Spapperi

Independent Director: Raffaele Cappiello

Independent Director: Marta Bavasso

Independent Director: Valerie Sun

Board of Auditors

Chairperson: Riccardo Foglia Taverna

Statutory Auditor: Giovanni Mongelli

Statutory Auditor: Sara Nuzzaci

Alternate Auditor: Irene Mongelli

Alternate Auditor: Diana Rizzo

Financial Reporting Manager

Francesco Spapperi

Independent auditing firm

Deloitte & Touche S.p.A.

INTRODUCTION

The Consolidated Interim Financial Report at 30 June 2025 (hereafter, also "Interim Report"), was prepared in line with Italian Legislative Decree 58/1998, as amended, and with the CONSOB Issuers Regulations.

The Interim Report consists of the report on operations, which contains the Directors' observations on operating trends and business developments during the first half of 2025, and the condensed consolidated interim financial statements.

The present condensed consolidated interim financial statements for the B&C Speakers Group at 30 June 2025 were prepared pursuant to the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and endorsed by the European Union and were drawn up in conformity with IAS 34 "Interim Financial Reporting". These condensed consolidated interim financial statements therefore do not include all the information required of the annual financial statements and must be read together with the annual financial statements prepared for the financial year ended 31 December 2024.

The present report has been drawn up also in accordance with Italian Legislative Decree 58/1998, and with the Regulation for Issuers published by CONSOB.

During the first half of 2025, the Parent Company continued its buyback programme, involving treasury shares, in accordance with the resolution passed by the Shareholders' Meeting held on 29 April 2025, which renewed the mandate to purchase treasury shares for another 12 months. At 30 June 2025, it held 1,716 treasury shares, equal to 0.02% of the share capital. The weighted average purchase price of shares in the portfolio is € 15.80.

At the date of this report (September 2025), the number of Treasury shares owned has changed with respect to 30 June 2025 and amounts to 14,976, equal to 0.14% of the share capital. For your information we can note that the Parent Company B&C Speakers S.p.A. is controlled by R&D International S.r.l. which performs work of direction and coordination.

The equity interest held by the holding Research & Development International S.r.l. represented, at 30 June 2025, 52.73% of the share capital; further information on relations with the holding are contained in the rest of the report.

The B&C Group is an international leader in the production and marketing of top-quality professional speakers. Due to the nature and type of this activity, this sector is the sole area of business for the Group, which operates both nationally and internationally.

Products are manufactured and assembled at the Italian sites of the Parent Company and of the subsidiary Eighteen Sound S.r.l., and at the production plants of the foreign subsidiaries Eminence Speaker LLC (based in Eminence, Kentucky, USA) and B&C Speakers (Dongguan) Electronic Co. Ltd. (based in Dongguan, China).

Production and distribution of Ciare branded products takes place through Eighteen Sound S.r.l.

Distribution in the North American market is handled through the American subsidiary B&C Speakers NA LLC, which also offers support services for sales to local customers. During the half, the process of transferring the operating and logistics assets of B&C Speakers NA LLC was begun, from the current location in New Jersey to the offices of the subsidiary Eminence Speakers LLC in Kentucky. This will make it possible to better take advantage of the assets of the Kentucky subsidiary, while simultaneously achieving significant logistics and operating synergies.

Distribution on the Brazilian market is done through the subsidiary B&C Speakers Brasil Ltda, while starting in 2024, distribution on the Chinese market is also done through the local subsidiary B&C Speakers (Dongguan) Electronic Co. Ltd.

Highlights

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In the tables below we present the economic and financial highlights of the half-year period:

Share performance

The B&C Speakers S.p.A. shares are listed on the Mercato Telematico Azionario organised and managed by Borsa Italiana S.p.A.

At 30 June 2025 (the last open market day of the half), the reference price for B&C Speakers

S.p.A. (BEC) shares stood at € 16.85 and consequently market capitalisation amounted to about € 185.3 million.

Sep

Nov

Jan 2025

Mar

May

Jul

Aug

6

The following shows the share performance of B&C Speakers SpA during the last 12 months.

Macroeconomic Situation

In the second quarter of 2025, growth in the Eurozone was +0.1% quarter on quarter, with an annual rate of 1.4%, driven by Spain (+0.7%) and France (+0.3%), while Germany and Italy each recorded -0.1%.

OECD estimates global GDP growth of 3.1% in 2025, and around 1.0% for the Eurozone. Average inflation in the Eurozone fell to 1.9%, slightly below the ECB's target rate, with a downward trend expected in coming quarters. The main risks associated with this weak performance are the US tariffs, geopolitical tensions and high fiscal deficits. An ECB survey also indicated growing uncertainty in European companies, with slowdowns in the manufacturing and services sectors, with moderate salary growth forecasts (3.3% in 2025, 2.8% in 2026).

Industry scenario

Following the COVID-19 crisis, the professional audio sector has experienced an extremely rapid recovery in its reference market, with a surge of live events and concerts. The global audio equipment market (the entire sector, both consumer and professional) is expected to increase from USD 66.6 billion in 2024 to around USD 69.9 billion in 2025.

In 2025, the pro audio speakers and amplifiers segment is worth around USD 2.25 billion, with an annual growth rate of 6.3% from the present through 2034.

A strong push towards sustainability and energy efficiency has also arisen, which is already creating new challenges for those in the sector. In fact, many are focussing on developing and implementing sustainability plans able to link technical and performance requirements with the ESG requests which are increasingly present in our sector, among others.

Given this situation, the first half of 2025 confirmed the positive trends seen in the sector. Additionally, as specified above, prospects in the next three years remain positive, with very interesting growth levels.

Group economic performance

Overall economic performance in the first half of 2025 was slightly down with respect to the first half of 2024. This was reflected in the Group's performance, which saw a slight decrease during the half in question compared to the first half of 2024. Additionally, note the number of new orders received during the half (€ 58.2 million), which was up 6% with respect to the same period in 2024.

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To better present the trend in operations in relation to the first half of financial year 2025 compared with the same period of the previous year, a table showing these results is provided below:

Economic trends - Group B&C Speakers

(€ thousands) 6 months

Incidence 6 months

Incidence

This interim report presents and comments on certain financial figures and certain reclassified schedules not defined within the IFRS.

These amounts are defined below in compliance with the provisions in CONSOB Communication (DEM 6064293) of 28 July 2006, as subsequently amended (CONSOB Communication 0092543 of 3 December 2015, implementing the ESMA/2015/1415 guidelines).

The alternative performance indexes listed below should be used as additional information with respect to that foreseen in the IFRS, to assist the users of the financial report to better comprehend the Group's economic, capital and financial performance. Please note that the adjustment methods used by the Group to calculate these figures have remained constant over the years. We also note that they could differ from methods used by other companies.

EBITDA (earnings before interest taxes depreciation and amortisation) is defined by the Issuer's Directors as the "before-tax and financial income and expenses", as resulting from the consolidated income statement gross of amortisation/depreciation, provisions and writedowns as resulting from the aforesaid consolidated income statement. EBITDA is a measure that the Issuer uses to monitor and assess the Group's operating performance.

EBIT (earnings before interest and taxes) represents the consolidated profit/loss before taxes, financial expenses and income as shown in the income statement tables prepared by the Directors in drawing up the financial statements in accordance with the IASs/IFRSs.

EBT (earnings before taxes) represents the consolidated profit/loss before taxes as shown in the income statement tables prepared by the Directors in drawing up the consolidated financial statements in accordance with the IASs/IFRSs.

Revenue

During the half, the Group achieved revenue of € 50.6 million, a 1.1% decrease with respect to the same period in 2024.

Below is a full breakdown by geographic area for the first half of 2025, compared with the

8

same period in 2024 (amounts in €):

Cost of sales

This category includes raw materials (purchasing, processing by third parties and changes in inventories), the cost of personnel directly involved in the production process, transport costs and the costs for commissions payable, customs duties and other direct costs of lesser importance.

During the first six months of 2025, the cost of sales remained substantially unchanged in terms of its impact on revenues with respect to the same period in 2024, going from 62.5% to 62.2%. This trend is due to: (i) a recovery of margins on the variable part of the cost of sales which allowed an improvement of 2.2 margin points compared to the first half of the previous year, (ii) a drop of 1.2 percentage points as a result of the increased cost of personnel, and

(iii) an increase in the impact of customs duties, which led to a loss of margin of about 0.5 percentage points.

Indirect Personnel

This category refers to costs for office staff, executives and workers not associated with the production process.

Indirect personnel costs rose slightly as a percentage of revenues compared to the first six months of 2024, going from 6.7% to 7.1%. In absolute terms, the figure for the first six months of 2025 was up 4.4% with respect to the first half of 2024.

Commercial expenses

This category refers to costs for commercial consultancy, advertising and marketing, travel and subsistence and other minor charges relating to the commercial sector.

Commercial expenses were, in absolute terms, substantially in line with the first half of 2024.

Administrative costs and overheads

Administrative costs and overheads rose by € 366 thousand with respect to the corresponding figure for 2024, also increasing in terms of their impact on revenues, from 7.5% to 8.3%. The increase in the costs in question can be attributed to investments made in It/logistics

management systems at Group companies, as well as additional investments associated with ESG aspects.

EBITDA and EBITDA Margin

As a result of these trends, EBITDA for the first six months of 2025 was € 10.9 million, down

by € 0.5 million (-4.6%) with respect to the same period in 2024.

The EBITDA margin for the first six months of 2025 was equal to 21.6% of revenues, compared to 22.4% in the same period in 2024.

Depreciation and amortisation

Depreciation and amortisation of property, plant and equipment, intangible assets and rights of use increased compared to the first six months of 2024, amounting to € 1.4 million (€ 1.3 million in the first six months of 2024). This increase is mainly due to the effects of investments during the period.

EBIT and EBIT margin

EBIT for the first six months of 2025 amounted to € 9.5 million, down 6.9% with respect to the same period in 2024 (when it amounted to € 10.2 million). The EBIT margin was 18.7% of revenue (19.9% in the same period of 2024).

Group Net Profit

The Group's net profit at the end of the first six months of 2025 amounted to € 5.7 million, representing 11.3% of consolidated revenue, with a decrease of 51.4% overall, compared to the corresponding period of 2024. This trend is due to the effects of the increase in financial expense, mainly linked to the trend in the Euro/USD exchange rate during the half, as well as the fiscal benefit of the Patent Box which in the first half of 2024 had a positive impact of € 3.9 million on the income statement. Removing the positive impact of the Patent Box, the Group's net profit in the first half of 2024 would have been € 7.7 million.

Equity and financial trend

Below is the reclassified balance sheet according to the allocation of sources and uses:

Note:

Fixed Assets: these are defined by the Issuer's Directors as the value of multi-year assets (property, plant and equipment, rights of use and other intangible assets). Net Operating Working Capital is defined by the Issuer's Directors as the value of inventories, trade receivables and other receivables net of debts for supplies and other payables. Provisionsare the value of bonds linked to employee severance indemnities and director severance pay. Invested net working capital is the value of financial assets and other financial receivables as described above. Raised capital is the value of net equity of the Group and the total indebtedness of the Group.

Net Operating Invested Capital shows a decrease of € 0.2 million compared to 31 December

2024. This decrease was mainly due to the combined effect of the following factors:

• a decrease in fixed assets amounting to approximately € 0.4 million due to the combined effects of investments and amortisation/depreciation for the period;

• a decrease in warehouse inventories of around 1.2 million, mainly due to the temporary halt of magnet exports from China, as a response to the tariffs imposed by the USA;

• an increase in trade and other receivables of around € 1.3 million, mainly due to an increase in trade receivables;

• a decrease in trade payables of around € 0.4 million;

  Net Non-Operating Capital Assets increased by 2.4 million euro compared to 31 December 2024. This increase is almost entirely attributable to the increase in the Group's cash and cash equivalents, thanks to excellent cash generation from operating activities during the period (equal to € 6.62 million).

  The other asset categories showed no change compared to 31 December 2024.

  The overall Net Financial Position is negative at € 4.9 million, compared with the negative amount of € 0.9 million registered at the end of 2024. The excellent cash flow coming from operations (€ 6.59 million) had a positive impact on the NFP, making it possible to limit the effects associated with repayments of existing loans and the payment of the dividend for

  € 10.8 million.

  Corporate structure

  At 30 June 2025 the Group's workforce was 374 resources, compared with 380 resources at 31 December 2024.

  Investments

  Investments during the first half of 2025 were mainly focused on improving production lines

  and the subsidiary Eminence Speakers's production structures.

  Significant events during the first half of 2025

  The Shareholders' Meeting, held on 29 April 2025, approved the financial statements and resolved the issue of an ordinary dividend of € 1.0 per ordinary share outstanding at the ex-dividend date (occurring on 05 May 2025, record date on 06 May 2025 and payment on 07 May 2025).

  At present, the flow of orders does not seem to be affected by the dramatic developments in Ukraine and Israel, as the Group has historically had very limited business with the countries involved. It cannot be excluded however that a continuing conflict and possible extension, could result in an indirect contraction in demand. B&C Speakers SpA Management is carefully monitoring developments in this scenario to understand the possible political, economic and other types of implications that this could have on the Company and Group's business.

  Business outlook

  The international economic situation, in which the prevailing uncertainty is associated with the tariffs applied by the United States, does not make it easy to predict the evolution of the reference market in the coming months. Supply chain issues caused by the temporary halt in magnet exports from China, in response to the tariffs imposed by the US, were for the most part resolved thanks to the Group's efforts. At present it no longer relies solely on ordinary supply channels and can also count on support from its own manufacturing structure in China.

  However, the expected results for 2025 could potentially be directly and indirectly affected by the consequences of the ongoing conflict between Russia and Ukraine, even though historically the Group has not had significant sales to Russian or Ukrainian customers.

  In this situation, the Group will continue to work to meet its commitments and goals, adopting all necessary measures to manage the direct and indirect effects of the risk factors cited above.

  Disclosure pursuant to Art. 79 of the Issuers' Regulation no. 11971/99

  members of the administrative and auditing bodies, general managers and key managers, as well as by spouses (where not legally separated) and their under-age children, whether directly or through subsidiaries, trustees or third parties, as resulting from the book of members, communications received and other information acquired by the members of the administrative and auditing bodies, general managers and key managers, the following information is provided:

• as at 30 June 2025, Director Lorenzo Coppini holds 50,000 shares in B&C Speakers S.p.A.;

• as at 30 June 2025, Director Alessandro Pancani holds 3,617 shares in B&C Speakers S.p.A.;

• as at 30 June 2025, Director Roberta Pecci holds 11,542 shares in B&C Speakers S.p.A.

Main risks and uncertainties to which the group is exposed

For a full breakdown of the main risks and uncertainties to which the Group is exposed, please see the Report on Operations in the consolidated financial statements at 31 December 2024.

With reference to financial risks, please see that indicated in the explanatory notes below.

Corporate Governance

The Group abides by the Code of Corporate Governance of Italian Listed Companies currently in effect. In accordance with the legislative obligations a Corporate Governance Report is prepared annually. In addition to providing a general description of the corporate governance system adopted by the Group, this contains the information on the ownership structures and on acceptance of the single prescriptions of the Code of Corporate Governance and on observance of the consequent commitments. For a more detailed description of the elements that make up Corporate Governance, please see the full document relating to the annual report available on the website https://www.bcspeakers.com, in the Investors section.

Art. 36 of the CONSOB Markets Regulation (adopted with CONSOB Resolution No. 16191/2007 and subsequent amendments): conditions for listing of companies that control companies incorporated and governed by the law of States not belonging to the European Union

In relation to the regulatory requirements regarding the conditions for the listing of companies that control companies incorporated and governed by the laws of States not belonging to the European Union and of significant relevance for the purposes of consolidated financial statements, note that:

• as of 30 June 2025 the regulatory requirements of Art. 36 of the Markets Regulation apply to the subsidiaries B&C Speakers NA LLC, B&C Speakers Brasil LTDA, Eminence Speakers LLC and B&C Speakers (Dongguan) Electronic Co. Ltd.

• appropriate procedures were adopted in order to ensure complete compliance with the aforesaid regulations.

Art. 37 of the CONSOB Markets Regulation: Conditions that inhibit the listing of shares in subsidiaries subject to the direction and coordination of another company

We certify, under the terms of Art. 2.6.2. Section 13 of the Regulation for Markets Organised and Managed by Borsa Italiana S.p.A., the existence of the conditions pursuant to Article 37 of CONSOB Regulation No. 16191/2007.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 June 2025 PREPARED IN CONFORMITY WITH THE IFRSs ADOPTED BY THE EUROPEAN UNION

14

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Notes 30 June

31 December

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF THE FIRST HALF OF 2025 PREPARED IN CONFORMITY WITH THE IFRSs ADOPTED BY THE EUROPEAN UNION

15

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Notes 6 months 2025 6 months 2024

CONSOLIDATED CASH FLOW STATEMENT AT 30 June 2025 PREPARED IN CONFORMITY WITH THE IFRSs ADOPTED BY THE EUROPEAN UNION

Note 1: the liquidity absorbed by repayment of rights of use liabilities includes absorption of liquidity attributable

to transactions with the parent R&D International S.r.l. for € 501 thousand.

16

The following table shows the composition of the balance of net cash and cash equivalents at 30 June 2025 and at 30 June 2024:

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY, PREPARED IN CONFORMITY

WITH THE IFRSs ADOPTED BY THE EUROPEAN UNION

We present below the changes in net equity that occurred in the first half of 2025 and in the first half of 2024.

Share Capital

Legal Reserve

Share

premium reserve

Extraordinary reserve

Exchange

rate reserve

Foreign

exchange reserve

Retained earnings

Net Group Equity

Minority

interest Total net Equity

Accounting policies

The present condensed consolidated interim financial statements were prepared in compliance with the International Accounting Standards ("IFRSs") issued by the International Accounting Standards Board ("IASB") and endorsed by the European Union. The term "IFRS" is also used to refer to all revised International Accounting Standards ("IAS") and all interpretations provided by the International Financial Reporting Interpretations Committee ("IFRIC"), previously named the Standing Interpretations Committee ("SIC").

The present condensed consolidated interim financial statements were drawn up in accordance with IAS 34 "Interim Financial Statements". These condensed interim financial statements do not include, therefore, all the information required in the annual financial statements and must be read together with the annual financial statements prepared for the financial year ended 31 December 2024.

The accounting standards adopted in preparing the present condensed consolidated interim financial statements are the same as those adopted in preparing the Group's annual consolidated financial statements for the financial year ended 31 December 2024.

While preparing the condensed consolidated interim financial statements, the Parent Company's Management made assessments, estimates and assumptions which have an effect on the value of revenue, costs and assets and liabilities and the disclosure related to the potential assets and liabilities at the reference date. It should be noted that, as these are estimates, they may differ from the actual results that may be obtained in the future.

Certain valuation processes, in particular the more complex ones such as determining any impairment losses on non-current assets are generally carried out completely only on preparation of the year-end consolidated financial statements, when all the necessary information is available, except in cases when there is evidence of impairment that requires an immediate measurement of losses.

Income taxes are recognised on the basis of the best estimate of the average rate expected for the entire financial year.

The Group's activities are not subject to significant seasonal factors.

Limited auditing of the condensed consolidated interim financial report for the B&C Speakers Group at 30 June 2025 was entrusted to Deloitte & Touche S.p.A..

Update on the macroeconomic situation

With reference to armed conflicts in course, note that the results of the first half of 2025 did not see any direct impacts from the conflicts in Ukraine and the Middle East. In fact, the Group has no history of significant turnover from Russian, Ukrainian or Middle Eastern customers.

The Group has only seen marginal indirect effects from the Russia/Ukraine conflict in terms of higher costs. In particular, as the Group's activities are not particularly energy intensive, the increase in energy costs was modest. Therefore, the overall effect on margins is in any case quite limited.

The international economic situation, in which the prevailing uncertainty is associated with the tariffs applied by the United States, does not make it easy to predict the evolution of the reference market. B&C Speakers S.p.A. Management is carefully monitoring developments in this scenario to understand the possible political, economic and other types of implications that this could have on the Company.

Taking the above into account, as well as the financial structure, existing liquidity, banking facilities available and the order portfolio at June 2025, Management does not see any significant uncertainties regarding the existence of the prerequisites for business continuity, as the Parent Company and the Group have the ability to meet their obligations and continue operating as a functioning entity for the foreseeable future.

Accounting standards, amendments and interpretations applied from 1 January 2025

The following IFRS accounting standards, amendments and interpretations were applied by the Group from the first time as from 1 January 2025:

On 15 August 2023, the IASB published "Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability". The document requires an entity to identify a methodology, to be applied in a consistent manner when verifying whether a currency can be converted to another and, when this is not possible, how to determine the exchange rate to use and the disclosure to provide in the Notes. The adoption of this amendment did not affect the Group's consolidated financial statements. The Group did not see any significant impacts on its equity, economic or financial situation associated with application of the aforementioned standards.

New IFRS accounting standards, amendments and interpretations approved by the European Union but not yet mandatory and not adopted in advance by the Group at 30 June 2025

As of the reporting date of this document, the competent bodies of the European Union had completed the endorsement process needed to adopt the amendments and standards described below, but these standards were not yet obligatorily applicable and have not been adopted in advance by the Group:

• On 30 May 2024 the IASB published "Amendments to the Classification and Measurement of Financial Instruments-Amendments to IFRS 9 and IFRS 7". The document clarifies certain problematic aspects which were identified in the post-implementation review of IFRS 9, including the accounting treatment of financial assets for which returns vary based on the achievement of ESG goals (i.e. green bonds). In particular, the amendments are intended to:

  • Clarify the classification of financial assets with variable returns linked to environmental, social and corporate governance objectives (ESG) and the criteria to utilise for the SPPI test;

  • Establish that the settlement date for liabilities utilising electronic payment systems is that on which the liability is extinguished. Nonetheless, entities are allowed to adopt an accounting policy that eliminates a financial liability for accounting purposes prior to receiving the liquid assets on the settlement date in the presence of certain specific conditions.

    Through these amendments, the IASB has also introduced additional disclosure requirements, in particular with reference to investments in equity instruments classified as FVOCI.

    The amendments apply to financial statements for financial years starting from 1 January 2026.

    The directors do not expect significant impacts on the Group's consolidated financial statements from the adoption of this amendment

• On 18 December 2024, the IASB published the amendment "Contracts Referencing Nature-dependent Electricity - Amendment to IFRS 9 and IFRS 7". The purpose of the document is to support entities in reporting the financial effects of purchase agreements for electricity produced by renewable sources (frequently structured in the form of Power Purchase Agreements). In these contracts, the amount of electricity generated and purchased may vary on the basis of uncontrollable factors, such as weather conditions. The IASB has made targeted amendments to standards IFRS 9 and IFRS 7. The amendments include:

  • a clarification regarding the application of "own use" requirements for these types

    of contracts;

  • criteria to allow recognition of these contracts as hedging instruments; and,

  • new disclosure requirements to allow readers of financial statements to understand the effect of these contracts on the financial performance and cash flow of an entity.

The amendment applies as from 1 January 2026, with early application permitted.

The directors do not expect significant impacts on the Group's consolidated financial statements from the adoption of this amendment.

Consolidation scope

The interim report at 30 June 2025 prepared according to the IFRSs includes line by line the financial statements of the Parent Company and of the companies of the B&C Speakers Group.

The companies within the scope of consolidation at 30 June 2025 are the following:

Group structure at 30 June 2025 Group structure at 31 December 2024

With reference to subsidiaries, there were no changes in the scope of consolidation compared to 31 December 2024.

The exchange rates applied in the conversion of financial statements in currencies other than the euro in the first half of 2024, at 31 December 2024 and in the first half of 2025 are shown in the table below:

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Operating segments

IFRS 8 requires precise identification of the areas of business in the internal reports used by the management in order to allocate resources to the various segments and monitor their performance. Based on the definition of the operating segments given by IFRS 8, the Group operates in a single sector ("acoustic transducers") and consequently executive reporting pertains to this area of business alone.

Analysis of the breakdown of the main items of the consolidated balance sheet at 30 June 2025

1. Property, plant and equipment

   A breakdown of property, plant and equipment and the related changes during the period are highlighted in the following tables:

   (In euros)

   Historic cost	31-Dec-24	Additions	Reclassification	Foreign exch.	(Decreases)	30-Jun-25
   Land and buildings	2,673,605	199,098	-	(317,103)	-	2,555,600
   Photovoltaic System and other minor	1,679,618	46,462	-	-	-	1,726,080
   Lightweight construction	202,839	-	-	-	-	202,839
   Plants and machinery	13,387,391	442,021	12,265	(391,477)	-	13,450,199
   Industrial equipment	9,312,439	241,074	13,308	(19,440)	(745)	9,546,636
   Various equipment	1,723,290	31,294	-	(14,047)	(10,795)	1,729,742
   Fixed assets in progress	157,291	6,518	(25,573)	281,374	-	419,610
   Total	29,136,473	966,466	-	(460,693)	(11,539)	29,630,706

   Accumulated depreciation 31-Dec-24 Depreciation Reclassification Foreign exch. (Decreases) 30-Jun-25

   Land and buildings	1,803,855	63,805	- (209,036)	-	1,658,624
   Photovoltaic System and other minor	1,046,375	47,854	- -	-	1,094,228
   Lightweight construction	106,731	7,134	- -	-	113,865
   Plants and machinery	11,296,665	239,306	- (366,076)	-	11,169,895
   Industrial equipment	8,322,181	209,324	- (2,492)	(269)	8,528,744
   Various equipment	1,465,168	55,144	- (11,143)	(10,795)	1,498,374
   Fixed assets in progress	-	-	- -	-	-
   			- -	-
   Total	24,040,976	622,566	- (588,747)	(11,064)	24,063,731

   Net value 31-Dec-24 Increases Reclassification Foreign exch. Depreciation (Decreases) 30-Jun-25

   Land and buildings	870,716	199,098	-	- 108,068	(63,805)	-	897,941
   Photovoltaic System and other minor	633,242	46,462	-	-	(47,854)	-	631,850
   Lightweight construction	95,365	-	-	-	(7,134)	-	88,231
   Plants and machinery	2,090,281	442,021	12,265	(25,400)	(239,306)	-	2,279,859
   Industrial equipment	990,257	240,330	13,308	(16,948)	(209,324)	269	1,017,891
   Various equipment	258,119	20,499	-	(2,903)	(55,144)	10,795	231,367
   Fixed assets in progress	157,293	6,518	(25,573)	281,374	-	-	419,612
   	-	-	-	-	-	-	-
   Total	5,095,272	954,926	-	128,054	(622,566)	11,064	5,566,751

   The most significant acquisitions during the period refer to the addition of production machinery and equipment at the Vallina plant in Reggio Emilia and modernisation of manufacturing structures at the subsidiary Eminence Speakers.

2. Rights of use

   The Group recognised rights of use assets and liabilities for leases, discounting the value of lease fees falling due. At 30 June 2025, the Group had rights of use for € 5,828 thousand (€ 6,692 thousand at 31 December 2024), broken down as follows:

   • Rights of use for properties of € 5,828 thousand, relative to medium/long-term property lease contracts;

   • Rights of use for vehicles of € 1 thousand, relative to medium/long-term lease contracts for company cars.

The change during the half is mainly due to the effects of amortisation during the period.

The item Goodwill saw no changes with respect to 31 December 2024 and refers to:

1. the consolidation of the equity investment in B&C Speakers NA LLC, for € 1,394 thousand;

2. the consolidation of the equity investment in Eighteen Sound S.r.l. for € 924 thousand.

   The value of the goodwill is the positive difference between the purchase cost and the Group's share in the current values of the identifiable assets, liabilities and contingent liabilities of entities acquired, as of the date of acquisition.

   Goodwill is subjected once a year, or more frequently should specific events or changed circumstances indicate possible impairment, to tests to identify any impairments, in accordance with the provisions of IAS 36 - Impairment of assets. The recoverability of the carrying amount is tested by comparing the net carrying amount of individual cash generating units (CGU) with the recoverable amount (value in use). This recoverable amount is represented by the present value of future cash flows that are expected from continuous use of the assets belonging to the cash generating units and from the terminal value attributable to them.

   CGU Eighteen Sound

   The assumptions made while preparing the Eighteen Sound's business plan used for the impairment test conducted on during preparation of the annual financial statements, approved by the Board of Directors on 7 February 2025, did not change significantly during the period in question, also taking into account the results seen by the aforementioned CGU during the first half of 2025. The measurements performed by the group did not identify, as of the reporting date, indicators that would lead management to deem it necessary to update the impairment test conducted at 31 December 2024 on the CGU Eighteen Sound and approved by the Parent Company's Board of Directors on 4 March 2025 in support of the recognition of goodwill.

   Given that the recoverable amount was determined on the basis of estimates, the Group

   B&C USA CGU

   With reference to the CGU B&C USA, the Directors, while still considering the plan approved on 7 February 2025 to be valid, as well as the conclusions for the purposes of preparing the 2024 financial statements, in consideration of the trends seen at the end of the first half of 2025 with a decline in turnover compared to plan forecasts, carried out a stress test on the recoverability of goodwill, developing an alternative scenario relative to expected cash flow. The actual performance seen in the first half of 2025 was taken as a reference point, as well as expected performance in the second half of the current year and additional assumptions found in the multi-year plan of the CGU B&C USA as approved by the parent company's Board of Directors on 7 February 2025 for the years following 2025.

   Considering the final trend seen in the first half of 2025, the Group prepared an alternative scenario for the CGU B&C USA. The basic assumptions used by the Group for the determination of future cash flows, and the resulting recoverable amount (value in use) for the B&C USA CGU refer to:

   1. a hypothesis for the end of 2025 based in part on revenue performance seen in July and August;

   2. a hypothesis of cash flow forecasts for the years after 2025, based on the five-year plan of B&C USA for the period 2025-2029, approved by the Parent Company's Board of Directors on 7 February 2025;

   3. a discount rate (WACC), determined with the same construction logic utilised in the previous year, with its components updated to reflect current market valuations, the cost of money, and the specific risks of the business and geographic area in which the CGU works;

   4. in addition to the explicit period a growth rate (g rate) was also estimated, specific to the CGU reflecting the growth potential of the reference area.

In particular, for the discounting of cash flows, the Company has adopted a discount rate (WACC) differentiated by CGU, which reflects the current market valuations of the cost of money and which takes into account the specific risks of the activity and the geographical area in which the CGU operates. The model for discounting future cash flows requires that, at the end of the projected cash flow period for the plan, the closing value is entered to reflect the residual value that the CGU is expected to generate. The closing value represents the current value, at the final year of the projection, of all subsequent cash flows calculated as perpetual return, using a perpetual growth rate (g rate).

Main financial parameters on impairment tests CAGR

WACC g

revenues

B&C USA

2025 5.4% 10.72% 1.9%

2024 5.4% 10.49% 2.1%

The scenario developed could, in any case, lead to a recoverable value for the cash generating unit that exceeds its carrying amount, hence not indicating impairment.

In addition, based on the information contained in joint document no. 2 of 6 February 2009 issued by the Bank of Italy, CONSOB and ISVAP, the Group conducted a sensitivity analysis on the test results compared to the change in the basic assumptions (use of the growth rate in processing the terminal value and discount rate) that affect the value in use of the CGU. Even in the event of a positive or negative variation of 1% of the WACC and g-rate used, the tests

Also on the basis of what was requested in the recommendations provided by ESMA in its Public Statement, "European common enforcement priorities for 2024 annual financial reports," as well as in CONSOB calls for attention, and the basic scenario commented on above, a scenario was prepared with a 2.1% CAGR from 2026 until the last year of the plan (that is, not exceeding the IMF's predicted inflation rate for the United States), in this way sterilising the effects of the growth estimates utilised in the original plan. Despite these penalising factors, the value in use of the CGU in question is higher than the carrying amount due to the considerations set out above.

Finally, an additional scenario was prepared with a decrease in margins due to the imposition of tariffs by the United States government, taking into account the Parent Company's ability to absorb a portion of the increase in purchasing costs by adjusting the prices utilised in its subsidiary. Despite these significant penalising factors, the value in use of the CGU in question is in any case higher than the carrying amount due to the considerations set out above.

Given that the recoverable amount is in any case determined on the basis of estimates and assumptions, the Group cannot guarantee that there will be no impairment of goodwill in future periods. Additionally, given the current uncertain environment, the Group will constantly monitor the various factors and any signs of impairment.

1. Other Intangible assets

   A breakdown of intangible assets and the related changes during the period are highlighted in the following table:

   (In euros)

   Other intangible fixed assets 31-Dec-24 Additions Reclassifications Depreciation 30-Jun-25

   Patent rights	337,037	53,661	10,000.00	77,103	323,594
   	10,426			10,383	43
   Intangible assets in progress	273,898	15,570	(10,000)	-	279,468
   Total	621,360	69,231	-	87,486	603,104

   "Patent rights" comprise software purchased from external suppliers, B&C Speakers trademark registration costs and costs for patent registration. The increase mainly refers to capitalisation of costs incurred to adapt the information system.

   Development costs refer to those incurred by the Group to develop a new type of speaker.

2. Deferred tax assets

At 30 June 2025, this item reflects deferred tax assets, net of deferred tax liabilities, totalling

€ 1,029 thousand (€ 1,051 thousand at 31 December 2024).

These amounts mainly consist of prepaid taxes arising following the taxation of not-entirely-deductible costs during the period and prepaid tax arising following derecognition of intra-Group margins.

Deferred tax assets have been recognised because the management expects the Company to

Fondiaria Assicurazioni and Allianz in relation to the capitalisation policies signed in order to

guarantee adequate financial cover of the Directors' severance pay.

The value of the assets relating to insurance policies recognised in the financial statements has been measured according to the value of the premiums paid.

Guarantee deposits reflect the amount receivable for guarantee deposits issued based on contracts for the leasing of the Group's manufacturing and administrative offices.

1. Inventories

   Warehouse inventories are calculated according to the F.I.F.O. method and can be broken down as follows:

   (In euros)

   Inventories	30-Jun-25	31-Dec-24	Change	% Change
   Row materials and consumables	9,741,538	9,600,299	141,239	1%
   Work in progress and semi-finished	16,961,382	16,948,332	13,050	0%
   Finished goods	4,667,036	6,154,940	(1,487,905)	-24%
   Gross Total	31,369,955	32,703,571	(1,333,616)	-4%
   Provision for inventory writedowns	(2,644,193)	(2,750,736)	106,543	-4%
   Net Total	28,725,763	29,952,836	(1,227,073)	-4%

   The value of inventories is shown net of provisions for inventory writedowns of € 2,644

   thousand, with the following changes during the half:

   Change in provision for inventory writedowns 31-Dec-24 Increase Use

   Foreign

   Exchange 30-Jun-25

   Provision for inventory writedowns	2.750.736	214.838	(158.808)	(162.573)	2.644.192
   Total	2.750.736	214.838	(158.808)	(162.573)	2.644.192

   The provision for obsolescence (with 28% attributable to the category of internally produced and purchased semi-finished products, 19% to finished products and 53% to raw and ancillary materials and consumables) was estimated following analysis carried out with respect to the recoverability of inventory values.

   Gross inventory value at 30 June 2025 was down with respect to 31 December 2024 as a consequence of the decrease in its stock of magnets, following the temporary halt in magnet exports from China as a response to the tariffs imposed by the United States.

2. Trade receivables

   Trade receivables relate to normal sales made to domestic and foreign customers and can be broken down as follows:

   (In euros)

   Trade receivables	30-Jun-25	31-Dec-24	Change	Change %
   Trade receivables	22,697,392	20,587,272	2,110,120	10%
   (Provision for doubtful accounts)	(470,947)	(459,210)	(11,737)	3%
   Total	22,226,445	20,128,062	2,098,383	10%

   The gross value of trade receivables increase compared to 31 December 2024 by € 2,110 thousand, as sales were concentrated in the second quarter of the year. There are no significant exposures with Russian or Ukrainian customers.

3. Current tax assets

   The assets in question amount to € 1,111 thousand at 30 June 2025 (€ 1,531 thousand at 31 December 2024). This balance indicates the net credit position for current taxes, which includes the tax benefit achieved by the Parent Company following the renewal of its request for a Patent Box ruling from the Revenue Agency.

4. Other current assets

   Other current assets can be broken down as follows:

   (In euros)

   Other current assets	30-Jun-25	31-Dec-24	Change	% Change
   Receivables towards supplier	131,489	125,539	5,949	5%
   Securities	7,237,513	7,283,091	(45,578)	-1%
   Other tax receivables	878,682	1,513,245	(634,563)	-42%
   Other minor receivables	404,693	379,939	24,754	7%
   Total other receivables	8,652,376	9,301,814	(649,438)	-7%
   Total prepaid expenses and accrued income	944,981	636,400	308,581	48%
   Total current assets	9,597,357	9,938,214	(340,857)	-3%

   Securities held in the portfolio refer to asset management items denominated in € and held for short-term liquidity. These securities were measured at fair value and the estimated gain (€ 154 thousand) is recognised as financial income in the income statement. A portion of the securities portfolio has been used in a pledge guaranteeing existing bank overdrafts.

   The item other tax assets refer to VAT credits and the credit for withholdings carried out during the period.

   The item prepayments and accrued income include the fair value of IRS hedging contracts in place at 30 June 2025, for € 8 thousand, and other accrued income for assistance and insurance fees.

5. Cash and cash equivalents

   In line with the requirements established in CONSOB communication DEM/6064293 dated 28 July 2006 and in compliance with the Guidelines on disclosure requirements pursuant to Regulation EU 2017/1129 (the "Prospectus Regulation") issued by ESMA and explicitly referenced by CONSOB in its Call to Attention no. 5/21 dated 29 April 2021, the Group's net financial position at 30 June 2025 is as follows:

   (In € thousands)

   	30 june	31 december
   (values in Euro thousands)	2025 (a)	2024 (a)	Change
   A. Cash	11,751	9,314	26%
   C. Other current financial assets	7,238	7,284	-1%
   D. Cash and cash equivalent (A+C)	18,989	16,598	14%
   E. Current financial indebtness	(2,426)	(2,595)
   F. Current portion of non current borrowings	(5,414)	(5,549)	-2%
   G. Current borrowingse (E+F)	(7,840)	(8,144)	-4%
   H. Current net financial indebtness (G+D)	11,148	8,453	32%
   I. Non current financial indebtness	(16,120)	(9,377)	72%
   L. Non current financial indebtness	(16,120)	(9,377)	72%
   M. Total financial indebteness (H+L)	(4,972)	(924)	438%

   (a) Informations extracted and / or calculated from the financial statements prepared in accordance with IFRS as adopted by the European Union.

   The items "Current portion of non-current financial debt" and "Non-current financial debt" include financial liabilities for rights of use due to the recognition of leasing contracts in line with IFRS 16. The amounts of these at 30 June 2025 and 31 December 2024 are detailed in the table below.

   Below is a statement of reconciliation between the final net cash and cash equivalents as seen in the Consolidated Cash Flow Statement and net financial debt shown above.

   	30-Jun-25	31-Dec-24
   Cash and cash equivalents at end of the period	9,325	6,719
   Current portion of non current borrowings	(3,931)	(4,168)
   Non current borrowings	(11,496)	(3,820)
   Securities held for trading	(1,482)	(1,381)
   Other financial current borrowings	(4,624)	(5,557)
   Other financial non current borrowings	7,238	7,283
   Total net financial position	(4,972)	(924)

   For further details concerning the change in cash and cash equivalents, please refer to the enclosed consolidated cash flow statement.

6. NET EQUITY

Share capital

Share capital came to € 1,099 thousand at 30 June 2025. Following the continuation of the share buy-back plan, at 30 June 2025, the Parent Company held 1,716 treasury shares, equal to 0.02% of the share capital. At the time this report was prepared (September 2025), the number of treasury shares owned has changed with respect to 30 June 2025 and amounts to 14,976, equal to 0.14% of the share capital. The following table shows the changes, in the first half of 2025, to the number of shares outstanding of the Parent Company:

Outstanding shares

Other reserves

This item, equalling € 5,526 thousand at 30 June 2025, comprises the legal reserve for € 379 thousand, the extraordinary reserve for € 44 thousand, the reserve for unrealised capital gains on currency exchange for € 52 thousand and the share premium reserve for € 5,052 thousand.

In particular, the share premium reserve, initially established when the Parent Company's ordinary shares were placed, rose by € 1,413 thousand during the half in question, following the recognition of operations carried out on treasury shares.

Foreign Exchange reserve

This item equalling € 169 thousand at 30 June 2025 includes the exchange differences arising from the conversion of the financial statements in foreign currencies. This reserve fell by € 559 thousand due to the recognition of other statement of comprehensive income items relating to the conversion of financial statements into foreign currency.

Retained earnings reserves

This item includes the following reserves:

Retained earnings

This includes the results of previous years, net of distribution of dividends.

Actuarial measurement reserve for employee benefit funds

This item includes the effects on net equity of the discounting component of severance indemnity.

Result of the period

This item comprises the net result for the period of € 5,704 thousand and other profit/(loss) for the period, for a positive value of € 6 thousand relative to the component deriving from the actuarial measurement of severance indemnity. This financial component is shown, net of the relevant tax effect, in the other components of the statement of comprehensive income.

The following tables show the effects recognised in the other components of the Statement of Comprehensive Income:

Earnings per share

Earnings per share have been calculated as per IAS 33. The value of this indicator is € 0.52 per share (€ 1.07 in the first half of 2024). This indicator has been calculated by dividing the profit or loss attributable to the shareholders of the Parent company by the weighted average of the ordinary shares in issue during the period. There were no significant dilutive factors.

The table below outlines the changes in financial debt for both the current and non-current portions:

Reclassification

In the tables below we present the main characteristics and conditions of the above loans.