Dexelance S p A : Annual Financial Report 2025 - PDF document

ANNUAL FINANCIAL REPORT AS AT 31 DECEMBER 2025

Issuer: Dexelance S.D.A. WeDsite: https://www.aexelance.cont

Date of the reoort's aoDroval Dy the Boara of Directors. J6 March 2026

Dexelance S.p.A. D

Registered Office in Milan (MI) - Corso Venezia, 29 Share Capital EUR 26,926,298

Milan Economic and Administrative Index No. 2062252

Tax code and registration no. in the Milan Business and Trade Registry: 09008930969

‌Table of contents

Table of contents 2

Letter to shareholders 7

Corporate Bodies 10

Financial Highlights 11

Management Report, Consolidated and Annual Financial Statements as at 31 December 2025-Consolidated Sustainability Statement 15

General Information- Basis for preparation 15

Methodology note 15

Sustainability governance 20

Sustainability strategy 30

The double materiality of Dexelance 43

Non-relevant ESRS topics 52

Policies [MDR - P DP 65] 56

Environmental information 62

Climate change 62

Information on environmental impacts, risks and opportunities 62

Energy and emissions 65

European taxonomy 74

Circular economy 91

Materials and waste 93

Workforce Information 99

Information on environmental impacts, risks and opportunities 99

Human Resources Management 101

Characteristics of the Group's people 104

Health and safety 109

Training 109

Entity-specific information 110

Governance Information 112

Information on environmental impacts, risks and opportunities 112

Annex 117

Management Report, Consolidated and Annual Financial Statements as at 31 December 2025 -

Economic and Financial Result

Macroeconomic and sectoral context 130

Progress of Group Management 132

Operating conditions and business development 133

Economic and financial position of the Group 137

Net financial position 148

Key financial/economic indicators 152

Investments made by the Group 153

Performance of the parent company Dexelance S.p.A. 154

Information on the Group's main risks and uncertainties 159

Information on the environment and staff 164

Treasury shares and shares of parent companies 165

Dexelance S.p.A. on the Stock Exchange 166

Shareholding 168

Business outlook 169

Notes to the Consolidated Financial Statements as at 31 December 2025. 176

General information 176

The Group 176

Significant events during the financial year 176

Form and content of the financial statements 177

Scope of consolidation 179

Basis of preparation of the financial statements 183

Accounting standards, amendments and interpretations applicable to financial statements as at 31 December 2025 183

IFRS accounting standards, amendments and interpretations not yet approved by the European Union 184

Measurement criteria adopted 190

Financial risk management 227

Macroeconomic reporting 233

Capital management 237

Analysis of the composition of the main balance sheet items as at 31 December 2025 239

1. Business combinations 239

2. Intangible assets 242

3. Right of use 252

4. Property, plant and equipment 254

5. Equity investments 256

6. Other non-current assets 256

7. Inventories 257

8. Contract assets 258

9. Trade receivables 258

10. Income tax credits 259

11. Other current assets 260

12. Other current financial assets 260

13. Cash and cash equivalents 261

14. Shareholders' equity 261

15. Post-employment benefits 263

16. Provisions for future risks and charges 264

17. Bank loans 265

18. Other current and non-current financial liabilities 271

19. Other non-current liabilities 275

20. Deferred taxes 276

21. Trade payables 277

22. Tax payables 278

23. Other current liabilities 278

24. Sales revenues for goods and services 279

25. Other income 280

26. Purchases of raw materials 280

27. Staff costs 280

28. Costs for services and use of third-party assets 281

29. Other operating costs 282

30. Provisions and writedowns 282

31. Amortisation, depreciation and writedowns of fixed assets 283

32. Financial income and expenses 283

33. Taxes 284

34. Other items of the statement of comprehensive income 285

35. Cash flow statement 285

36. Related parties 286

37. Commitments and guarantees 287

38. Subsequent events 287

Statement of the consolidated financial statements in accordance with Article 154-bis of Italian Legislative Decree No. 58/1998 of 24 February 1998 (Consolidated Finance Act), as amended 289 Report of the Independent Auditors on the audit of the consolidated financial statements 291

Certification of the sustainability report pursuant to Article 81-ter, paragraph 1, of CONSOB Regulation no. 11971 of 14 May 1999 and subsequent amendments and additions 292

Report of the Independent Auditors on the limited review of the consolidated sustainability reporting pursuant to Art. 14-bis of Legislative Decree no. 39 of 27 January 2010. 293

Financial statements for the period as at 31 December 2025 294

Notes to the Financial Statements as at 31 December 2025 298

General information 298

Significant events during the financial year 298

Form and content of the financial statements 302

Current/non-current classification 303

Cash flow statement 304

Accounting standards, amendments and interpretations applicable to financial statements as at 31 December 2025 304

IFRS accounting standards, amendments and interpretations not yet approved by the European Union 305

Evaluation criteria 305

Discretionary measurements and significant accounting estimates 327

Strategic business area information 328

Analysis of the composition of the main items in the statement of financial position as at 31 December 2025 329

1. Other intangible assets 329

2. Right of use 329

3. Property, plant and equipment 331

4. Deferred tax assets 332

5. Equity investments 332

6. Other non-current assets 339

7. Other current and non-current financial assets 339

8. Trade receivables 341

9. Income tax credits 341

10. Other current assets 341

11. Cash and cash equivalents 342

12. Shareholders' equity 342

13. Post-employment benefits 346

14. Provisions for risks and charges 347

15. Bank loans 347

16. Financial payables to lessors 348

17. Other current financial liabilities 349

18. Trade payables 352

19. Income tax payables 352

20. Other current liabilities 352

21. Revenue for goods and services 353

22. Other income 354

23. Staff costs 354

24. Costs for services and use of third-party assets 354

25. Other operating costs 356

26. Amortisation, depreciation and writedowns of fixed assets 356

27. Financial expenses 357

28. Financial income 357

29. Income tax 358

30. Cash flow statement 359

31. Commitments and risks 359

Disclosure pursuant to art. 2497 bis of the Civil Code 366

Information pursuant to art. 1, paragraph 125, of Law No. 124 of 4 August 2017 367

Related party transaction information 367

Events occurring after the end of the financial year 370

Proposed profit earmarking or loss coverage 371

Statement of the financial statements in accordance with Article 154-bis of Italian Legislative Decree No. 58/1998 of 24 February 1998 (Consolidated Finance Act), as amended 372

Report of the Independent Auditors on the audit of the annual financial statements 374

Report of the Board of Statutory Auditors 375

‌Letter to shareholders

Dear shareholders,

This year, Dexelance has once again chosen to present an integrated annual report, which incorporates the Group's financial results and sustainability reporting within the management report, in line with the adoption of the Corporate Sustainability Reporting Directive (CSRD). This approach reflects our business model, which is based on the coordinated and synergistic management of the Group's companies, in which sustainability is being progressively incorporated into our strategy, governance and operational management.

With regard to ESG, we stepped up our efforts to fight climate change in 2025 through investments aimed at improving the energy efficiency and self-sufficiency of our production sites, whilst promoting an increasingly efficient use of resources throughout the entire production cycle. At the same time, we continue to pay close attention to our business ethics principles and to fostering an inclusive working environment that supports a healthy work-life balance, a commitment further reinforced by the adoption of Group-wide policies that address sensitive issues such as diversity, inclusion and the management of working hours. Our people are one of the most important assets underpinning the Group's long-term growth and stability.

For the year 2025, we have also measured and certified, in accordance with the international standard ISO 14064-1:2018, the greenhouse gas (GHG) emissions inventory for operations across the entire scope of Dexelance's consolidation, which has been fully offset through the purchase and retirement of credits on the voluntary carbon market, thereby contributing to the financing of projects for the generation of electricity from renewable sources. Although the purchase of carbon credits does not replace targeted measures to gradually reduce the Group's carbon footprint - as evidenced by our ongoing investments in this area - the funding of these initiatives enables Dexelance to continue operating on a carbon neutral basis, thereby reaffirming its commitment, even at the financial level, to responsible and sustainable development on a global scale.

2025 was also a year marked by complex and unpredictable events, which were also aggravated by the continuing political and military tensions of the conflicts between Russia and Ukraine and between Palestine and Israel, confirming yet again a strong instability at a macroeconomic and geopolitical level.

As a result, the high-end design market is still undergoing a process of 'normalisation' and overall stability, though with two opposite trends: the retail sector is in decline, as is the contract sector within the luxury segment; conversely, there has been growth in projects within the residential and hospitality sectors.

The Dexelance Group ended 2025 with a full revenue of EUR 372.7 million, representing 15% growth compared with the previous year, driven by the acquisition of Mohd, a 'Made in Italy' brand of excellence that operates globally through an innovative omnichannel model. As a result, we are firmly established among the top 10 groups in the world in the high-end and upper-mid-range design sector. With regard to M&A transactions, we would also like to highlight the acquisition of a 25% stake in the Roda Group, a leading manufacturer of high-end outdoor furniture, and the remaining shares in Flexalighting S.r.l., which has given us full ownership of the company.

For the first time during our tenure, organic growth has slowed down, due, on the one hand, to a more conservative approach to retail spending among key clients in the luxury sector within the Luxury Contract segment, and, on the other hand, to certain non-recurring factors that have affected the residential sector.

Due to the investments made to support brand development and the inclusion of new talent to strengthen the organisation, the year closed with a full adjusted EBITDA of EUR 34.4 million, representing 9.2% of full revenue, and a full adjusted net profit of EUR 6.2 million, representing 1.7% of full revenue.

At the start of 2026, the situation remains complex and difficult to assess, with further conflicts in Iran and across the Middle East adding to the challenges. Once again, the leading indicators suggest that the target market remains broadly stable, but we are confident that we can continue to grow organically, as set out in our Mid-Term Ambition Plan, without taking into account the effects of the capital increase to be carried out likely

by June, which will help us further capitalise on M&A opportunities arising in a sector that is increasingly tending towards consolidation.

We firmly believe that the priority today is not simply to 'grow further', but to manage the complexities of this growth by establishing a direct link between the group's vision and the organisation's ability to execute, ensuring that every brand, project and role contributes in a coordinated and synergistic manner to furthering a single strategic direction. This delicate balance is nevertheless the fundamental and defining feature of the Dexelance model, which aims to preserve the autonomy and identity of each brand, highlighting their culture and entrepreneurial talent, whilst still fostering real synergies at the group level. This model is what truly distinguishes Dexelance.

I would like to take this opportunity to thank all of our stakeholders for their continued support, especially our shareholders, our Board of Directors and, above all, all of the more than one thousand people who form part of our community.

Thank you all, Andrea Sasso

‌Corporate Bodies

Fabio Sattin Honorary Chairman

Andrea Sasso Chair and CEO

Giorgio Gobbi Executive Director

Paolo Colonna Director

Giovanni Tamburi (*)Director

Alessandra Rollandi Director

Piero Generali Director

Alessandra Stea Director

Giovanni Gervasoni Director

Cristina Finocchi Mahne (*) (**)Independent Director

Lea Lidia Lavitola (*) (**)Independent Director

Paola Mungo (**)Independent Director

Filippo Annunziata Chairman and Statutory Auditor

Marzia Nicelli Standing Auditor

Fabio Buttignon Standing Auditor

Fausto De Angelis Chairman Anna Maria Magro Member Nicola Traverso Member

EY S.p.A.

‌1In office until the approval of the financial statements for the year as at 31 December 2025

‌2In office until the approval of the financial statements for the year as at 31 December 2025

‌3In office until the approval of the financial statements for the year as at 31 December 2027

‌4In office until the approval of the financial statements for the year as at 31 December 2031 (*) Member of the Appointments, Human Resources, and Remuneration Committee

(**) Member of the Control and Risks, Related-Party Transactions and Sustainability Committee

‌Financial Highlights

The following table shows the Group's main financial highlights (expressed in thousands of euros) as at 31 December 2025, compared to the results achieved in the previous year, as if the acquisitions had taken place on 1 January of each year.

It should be noted that:

• The EBITDA was determined without considering non-recurring costs (adjusted EBITDA);

• EBIT was calculated gross of the amortisation and depreciation of intangible assets with a finite useful life recorded during PPA (Purchase Price Allocation) (adjusted EBIT);

• The net result, on the other hand, was determined without the positive and negative economic effects of imputed charges and the remeasurement of put and call options and earn-outs due to minority shareholders and the related tax effect (adjusted net result).

For the reconciliation of the figures, please refer to paragraph Economic and Financial Result of the Management Report accompanying the Consolidated and Separate Financial Statements as at 31 December 2025.

ESEF (European Single Electronic Format) compliance

The consolidated financial statements as at 31 December 2025 have been prepared in the XHTML format and have been marked in accordance with the provisions of the European Commission's Delegated Regulation (EU) 2019/815 and subsequent versions on regulatory technical standards relating to the specification of the European Single Electronic Format (ESEF).

‌General Information- Basis for preparation - ESRS 2

‌Methodology note

Consolidated Sustainability Statement (or also the "Statement" or the "Disclosure") provides the reader with clear, accurate, transparent and comprehensible information on the environmental and social impacts generated by the Dexelance Group, as well as impacts regarding personnel, respect for human rights and supplier relations management caused directly or indirectly by the company, or to which it has contributed. It provides a thorough understanding of the main risks associated with the Group's business activities, as well as its achievements and performance in the area of sustainability.

The Dexelance Group, as an organisation already subject to the non-financial reporting obligation pursuant to Legislative Decree no. 254/2016, is publishing its second annual consolidated sustainability statement in accordance with the requirements of the new EU Directive 2022/2464 (the "CSRD"), which has been transposed into Italian law by Legislative Decree 125/2024.

[BP-1] General basis for the preparation of the sustainability statement

This Statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS), specifically defined by EFRAG to meet EU regulatory requirements under the CSRD. The qualitative and quantitative data and information contained within this document refer to the financial year ended 31 December 2025. The reporting scope coincides with that of the Dexelance Group's Annual Consolidated Financial Statements, meaning that it includes the financial reporting data of the parent

company (Dexelance S.p.A.) and the fully consolidated companies.5 Please note that the company Roda S.r.l. (hereinafter "Roda"), acquired in July 2025, is not included in this statement because, as the Dexelance Group acquired a minority stake in the company, it does not fall within the scope of consolidation; whereas for the company acquired in September 2025, Mollura & C. S.p.A. (hereinafter "Mohd"), this Statement considers only the data for the period during which the company was actually consolidated within the Group's scope (from October 2025 to December 2025), and not for the full financial year. The information provided in this Sustainability Statement is prepared in such a way that it includes information on the Group's relevant impacts, risks and opportunities arising from its direct and indirect business relationships in the upstream and/or downstream value chain.

In this document, Dexelance has chosen not to report sensitive information of a strategic, product-related nature, while making sure not to compromise the overall relevance of the disclosure. The Group complies with its disclosure obligations by providing all other information requested and having made all reasonable efforts to ensure that the omission does not affect the completeness and relevance of the Reporting.

Dexelance did not make use of the exemption from the disclosure of information concerning upcoming developments or matters under negotiation, pursuant to Articles 19 bis, paragraph 3 and 29 bis, paragraph 3 of Directive 2013/34/EU.

[BP-2] Regarding specific circumstances

Definition of short, medium and long-term time horizons

In preparing the Sustainability Statement, Dexelance adopts the short-, medium-, and long-term time horizons defined by ESRS 1, as follows:

• Short-term: one year, the period adopted as the reference for its financial statement;

• Medium-term: up to five years after the end of the short-term reference period;

  ‌5For further details, please refer to the section "Operating conditions and business development" in the "Management Report Consolidated and Separate Financial Statements as at 31 December 2025 - Economic and financial results", included in this document.

• Long-term: more than five years.

  The choice of time horizons was made to ensure a consistent assessment capable of integrating sustainability into the company's business. The short-term horizon, coinciding with the annual accounting cycle, makes it possible to combine sustainability information with financial data and to monitor the effectiveness of initiatives in a timely manner. The medium-term, which covers up to five years from the end of the short term, allows for planning sustainable strategies, monitoring the achievement of relevant objectives and assessing risks and opportunities within a more predictable time frame. Finally, the longterm, which exceeds five years, is crucial for considering long-term environmental, social and governance impacts, including emerging risks such as climate change.

  Value Chain Estimation

  As far as the organisation's GHG calculation is concerned, the collection of data, its processing and the subsequent quantification of emissions were based on the core principles of the reference standard UNI EN ISO 14064-1:2018, which has been adopted since the first year of this inventory's calculation and reporting, i.e. the financial year 2023.

  For the purposes of the inventory calculation, data on significant direct and indirect emission sources were collected, as well as the data required to process them.

  Regarding to indirect emissions, Dexelance has defined a set of criteria to identify the significant ones, which are subject to quantification and reporting. To do so, the following criteria were considered:

• Magnitude: This criterion assesses the magnitude/volume of emissions on the basis of already published studies for similar realities, or on the basis of qualitative-quantitative assessments that include expert opinions and/or quick estimates.
• Level of influence and control: This criterion assesses the organisation's ability to influence the specific emission source. The objective of this criterion is to circumscribe the indirect emissions on which the organisation can effectively

  intervene with reduction plans, thereby avoiding efforts in reporting on aspects on which the ability to influence is nil.

• Access to information: The aim of this criterion is to measure the availability of the information needed to quantify the emissions associated with the source, so that an assessment can be made of the effort-benefit ratio, cross-referencing it with information on magnitude and the capacity to influence.

For the purposes of this report, the categories found to be significant, following the application of the above criteria according to ISO 14064, have been transposed according to the nomenclature and clustering provided by the GHG Protocol. More information on the relevant categories and their associated GHG emissions can be found under the "Energy and Emissions" section of the chapter titled "Environmental Information".

The selection of activity data followed a clearly defined hierarchy, prioritising physical data (e.g. mass, volume) as the first option, followed by estimated physical data (derived from sampling or conversions of economic data) or economic data.

In accordance with ISO 14064, a two-tier uncertainty analysis was carried out to ensure that the results of the GHG emissions inventory are presented transparently and interpreted correctly.

The first regards the method used to quantify activity data. Each method has been assigned a level of uncertainty that increases in line with the degree of approximation of the data, distinguishing between measured, sampled or estimated physical data and economic data. This approach reflects the varying degrees of reliability of the available information and makes it possible to highlight the areas that are most dependent on assumptions or indirect conversions.

The second source regards the uncertainty of emission factors, which is estimated differently depending on the source database. For factors derived from Ecoinvent and the World Food LCA Database, uncertainty was quantified using a statistical analysis carried out using Simapro software, in accordance with the approach described by Muller et al. A standard uncertainty was applied to factors derived from EPD, whilst a higher level of

uncertainty was used for those from Exiobase, consistent with the macroeconomic nature of that database.

The overall uncertainty for each emission source was therefore calculated by aggregating the two components (activity data and emission factor) using the square root of the sum of the squares, in line with established practice.

For transport and end-of-life processes, the level of uncertainty is inherently higher. Although the mass can be accurately measured, estimates of distribution distances and end-of-life treatment - based on simplified assumptions and statistics with limited representativeness - entail the classification of this quantification approach as an estimated physical value.

Lastly, the emission factors used are derived from the main databases (Ecoinvent, DEFRA, Exiobase), and they consider all the main GHGs (i.e. CO2, CH4, N2O, HFCs, PFCs, SF6 and other fluorinated gases), which were then translated into CO2-equivalent units using the characterisation factors released by the IPCC (AR6 of 2021), the most authoritative institution on climate change. For further information on the specifications of the factors used, please refer to the chapter titled "Main Calculation Criteria".

Sources of estimation and outcome uncertainty

Where estimates have been made in the quantification of data with a high level of uncertainty, an appropriate indication is given at the bottom of the relevant figure included in the relevant section. The Group endeavours to monitor possible changes in regulations or reference standards used (e.g. ISO 14064) to reduce the level of uncertainty of reported information whenever possible.

Changes in preparation or presentation of sustainability information

As this is the second year of reporting in accordance with the ESRS Standards, Dexelance has provided comparative figures for the previous financial year. Consequently, there is no change in the sustainability information compared to the previous reporting period.

Reporting errors in prior periods

From this financial year onwards, comparability has been restored, and based on the verifications conducted, no material errors were identified, nor were any adjustments or the use of alternative measures necessary.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

Other than the information required by ESRS, Dexelance did not include information required by other legislation containing sustainability reporting requirements or generally accepted sustainability provisions. Therefore, there are no references to additional applied reporting principles or frameworks.

Incorporation by reference

The text includes, for each ESRS reporting obligation, a referral to the "Management Report of the Consolidated and Separate Financial Statements as at December 31, 2025 - Economic and financial result", with an indication of the corresponding section.

This disclosure requirement is not applicable to the Group, as the number of employees as of 31/12 is greater than 750.

‌Sustainability governance

[GOV-1] The role of the administrative, management and supervisory bodies

The corporate governance system adopted by Dexelance is aimed at creating synergies between the different companies and is geared towards ensuring a responsible and transparent management of the Group. Since its listing, and as subsequently confirmed at the meeting on 7 February 2024 of the Board of Directors (hereinafter the "BoD" or the "Board of Directors"), Dexelance has adhered to the Corporate Governance Code of Listed Companies approved in January 2020 by Borsa Italiana's Corporate Governance Committee.

Therefore, its governance model consists of a Board of Directors (BoD), which is responsible for managing the company, supported by the Board of Statutory Auditors, a supervisory body responsible for monitoring compliance with the law and company rules, in addition to ensuring the adequacy of the company's internal oversight systems and

organisational departments that monitor the directors' compliance with the by-laws and the law.

The BoD pursues the objective of creating sustainable value for the long-term by defining the strategies of the Group and its member companies and by monitoring, through regular update meetings, the implementation and impacts of its management on the company. The Board is also called upon to deliberate whenever the Company assesses an opportunity for external growth, to ensure its adherence and consistency with the Group's development strategy.

As of 31 December 2025, the Board of Directors of the Group, unanimously appointed by the ordinary shareholders' meeting on 9 May 2023 and which took office after the completion of the listing on 18 May 2023, consists of 11 members, six men (55%) and five women (45%), of which 36% belong to the age 30-50 group, and the remaining 64 %, to the 50+ age group. 27% of the members of the Board of Directors are independent. In addition to these 11 members of the Board, there is an Honorary Chairman, who has the right to participate in all board meetings, but without the right to vote. The executive members within the bodies are Andrea Sasso (Chairman & CEO) and Giorgio Gobbi (Executive Director).

The Board of Statutory Auditors consists of three full members, one of whom is a woman, and two alternate auditors, one of whom is a woman. Considering the total membership, including full and alternate members, 20% of the members of the Board are in the 30-50 age bracket, and the remaining 80% are in the over-50 age bracket.

Andrea Sasso, Chairman of the Board of Directors, also holds the position of Managing Director and Chief Executive Officer (hereinafter the "CEO"). This position was confirmed unanimously at the meeting on 23 May 2023, the first meeting held after the effective appointment of the new Board of Directors. This meeting also confirmed the appointment of Giorgio Gobbi as Executive Director, the independence requirements of the independent directors, the appointment of the Lead Independent Director, and the composition and chairmanship of the Board's own internal committees.

The interests of the stakeholders, the diversity within the Board of Directors, and the competencies of its members were taken into account by the aforementioned shareholders' meeting to warrant the appointment of the current Board, which will remain in office until the approval of the financial statements as at 31 December 2025. Further bodies established at the Shareholders' Meeting of 9 May 2023, also effective upon completion of the listing process are the Appointments, Human Resources, and Remuneration Committee and the Control, Risk, Related Party Transactions, and Sustainability Committee.

There is no employee representation on administrative, management and supervisory bodies.

The members of the bodies have extensive and consolidated experience in the business sectors, the Group's products and Dexelance's target markets. Their careers have developed in leading roles in areas such as finance, investment, private equity, corporate governance, marketing, operations and strategic development, with across-the-board experience in leading national and international companies. With diverse and complementary backgrounds ranging from manufacturing, design and retail to strategic consulting and sustainability, each member brings distinctive skills that contribute to Dexelance's growth and innovation.

Table 1 Percentages of members of administration, management and control bodies broken down by gender

Management, sustainability team, and management of IROs

The Board of Directors plays a control and approval role, drawing on the support of the Board's own internal committees for operational assessments. In particular, the Control and Risk, Related Party Transactions and Sustainability Committee provides proposing and advisory functions, thereby guaranteeing an adequate preliminary activity to support the Board's decisions on the internal control, risk management and sustainability system. Given the key importance of sustainability, Dexelance has set up a Sustainability Team within the Parent Company, consisting of an ESG Manager and an ESG Specialist, who work in close synergy with the Group's Chief Financial Officer (hereinafter the "CFO"), and with the ESG Ambassadors, who are the point persons at the subsidiaries involved in implementing the actions concerning the sustainability objectives. The ESG Ambassadors, supervised by the Group's management, namely, the CEOs of the subsidiaries, actively cooperate with the Parent Company's Sustainability Team to implement ESG strategies, thereby ensuring coordinated and effective action on all sustainability issues.

On 12 November 2025, the Board of Directors approved the double materiality analysis

carried out for the purpose of the 2025 Sustainability Statement, which identifies relevant Impacts, Risks and Opportunities (IROs) for the Dexelance Group.

During the current financial year, in line with the provisions and plans set out in the Manifesto approved last year, the Group is continuing to implement the measures and

‌6The average ratio of male to female members of the Board of Directors is approximately 1.3.

objectives outlined in the 2025-2027 Business Plan,7 which have been designed to address environmental, social and governance issues involving all Group companies in order to ensure a consistent, integrated approach. These actions and objectives have been reaffirmed and incorporated into the new, current Business Plan covering the three-year period of 2026-2028.

This year as well, the Plan was prepared in cooperation with the ESG Ambassadors, thereby ensuring the concreteness and feasibility of the defined initiatives. The objectives, which were approved by the Parent Company's management8 and the Board of Directors, were carefully evaluated to ensure a close connection with the material IROs and to foster strategic synergies and effective supervision.

Progress was monitored during this reporting year on a quarterly or half-yearly basis, depending on the specific nature of the objectives.

This monitoring has enabled us to continuously assess the progress of our initiatives, ensure that pre-defined deadlines are met, and reinforce the Group's commitment to sustainability.

The Board of Directors has a control and approval role on issues regarding impacts, risks and opportunities, and it receives support from the Control and Risk, Related Party Transactions and Sustainability Committee. This committee performs a proposing and advisory role, providing adequate preparatory work for the Board's evaluations. In particular, it supports the definition of sustainability guidelines, the periodic review of impacts, risks and opportunities, and the monitoring of actions taken to manage them. The Parent Company's Sustainability Team is in charge of operationally supporting these processes, also with the involvement of any external advisors who may be appointed at any given time.

The Group's management manages impacts, risks and opportunities through a governance that takes place at two levels: the Parent Company's management, which is responsible for the overall strategy, and Group Management, which is in charge of

‌7It should be noted that the scope of the Business Plan covers the Group's Italian subsidiaries.

‌8The CEO; Managing Director; CFO; CDO; Corporate Development, IR & ESG Manager.

operational implementation. The Parent Company's Sustainability Team works with the CFO to coordinate the integration of ESG strategies, with the support of the ESG Ambassadors. Control and monitoring are entrusted to the BoD and the Control and Risk Related Party Transaction and Sustainability Committee, which oversee the effectiveness of the actions taken.

The effectiveness of the Group's governance mechanisms is supported by continuous training and a focus on developing the skills of management and of the directors in the area of sustainability. The Company encourages the Group's management's participation in events dedicated to sustainable development, and/or Dexelance's participation in awards, calls for tenders, projects and communities whose areas of focus also touch on sustainability issues. In addition, the Control and Risk, Related Party Transactions and Sustainability Committee and the Board of Directors receive regular reports from the Parent Company's management on the actions carried out by the Group with a view to sustainable development. At the same time, formal and informal meetings are held with members of the Group's management and their direct reports on sustainability issues, in which any external advisors specialised in ESG issues who may be identified at any given time may also take part. Finally, as was the case for the first time in 2024, a workshop was organised in 2025 to address various sustainability related issues, including regulatory developments, strategic priorities and emerging operational challenges. The meeting provided an opportunity for all participants from the subsidiaries involved to exchange views, with the aim of jointly assessing the urgency, impacts and needs in the area of sustainability.

[GOV-2] Information provided to and sustainability matters addressed by the

undertaking's administrative, management and supervisory bodies

Dexelance's Parent Company management and the Board of Directors are routinely informed about relevant impacts, risks and opportunities as well as their related policies and objectives, which are reported to them by the Sustainability Team at committee meetings convened on an annual basis. Where necessary, the BoD is aligned with the

results and effectiveness of policies and actions carried out by the Group or the individual subsidiaries.

The 2026-2028 Business Plan integrates the sustainability related strategic lines resulting from the double materiality analysis, ensuring consistent alignment with the pillars and strategic lines identified in the Group's ESG Manifesto and with the needs of the individual subsidiaries. In particular, the role of the Board of Directors is fundamental in identifying and pursuing the Group's strategic objectives. It evaluates the general management performance and takes the information received from the delegated bodies into account. In the meetings dedicated to defining and reviewing the corporate strategy, in conjunction with the assessments conducted for the Business Plan, the administrative, management, and supervisory bodies address the issues relevant to the Group arising from the identification of the most significant impacts, risks and opportunities (IROs) for Dexelance. This allows for a thorough and balanced assessment of any trade-offs between growth objectives, sustainability and long-term value creation.

The list of significant impacts, risks and opportunities addressed by the administrative, management and supervisory bodies during the reporting period can be found in the section "Dexelance's double materiality" in this chapter.

[GOV-3] Integration of sustainability related performance in incentive schemes

Members of the administrative, management and supervisory bodies are not currently offered incentive schemes linked to sustainability targets, with the exception of the two directors Andrea Sasso and Giorgio Gobbi. In fact, after the Shareholders' Meeting of 22 April 2024 approved the 'Italian Design Brands 2024-2029 Performance Shares Plan', an incentive plan based on financial instruments with a vesting period running from 2024 to 2029 and having as its beneficiaries Dexelance's Strategic Managers, namely the CFO, the CDO, and the Corporate Development, IR & ESG manager, as well as Andrea Sasso, Chair and CEO, and Giorgio Gobbi, Executive Director. 20% of the units accrued by the Plan's beneficiaries are linked to ESG performance objectives. These were confirmed following the approval of the 2025-2027 Business Plan, which, as described above, also includes

actions and objectives regarding sustainability issues. In addition, starting in the year 2025, with reference to the objective "Implementation of an incentive system linked to ESG KPIs", provided for in the current Business Plan, annual bonuses linked to sustainability goals set for the individual companies will be provided for the Group management, as well as for the ESG Ambassadors.

[E1 GOV-3] Integration of sustainability related performance in incentive schemes

No climate change related incentive schemes are currently being offered to members of the non-executive administrative, management and supervisory bodies.

[GOV-4] Statement on due diligence

At present, the Group does not have an active, formal due diligence system for sustainability, but it implements various controls that help to ensure the supervision and management of risks in the relevant areas. The adoption of standards such as ISO 14064 complements the other management systems of some Group companies (ISO 14001, ISO 9001, and ISO 450019). This constitutes a real safeguard for the management and control of environmental and social impacts. Furthermore, the Supervisory Body, pursuant to Legislative Decree 231/2001 and within the companies where it holds office, carries out spot checks on issues such as governance and health and safety, with a view to monitoring the adequacy of internal processes and ensuring compliance with regulations and company procedures.

These tools not only ensure compliance with applicable regulations, but also promote continuous improvement, the identification of risks and opportunities, and the implementation of corrective and preventive actions.

[GOV-5] Risk management and internal controls over sustainability reporting

During 2025, Dexelance drew up the "Procedure for the Preparation of the Consolidated Sustainability Statement", which was approved by the Board of Directors on 12 November

‌9ISO 14001 - Gervasoni; ISO 9001 - Gervasoni, Saba Italia, Flexalighting, Cubo Design; ISO 45001 -

Gervasoni

2025, with the aim of establishing an internal control and risk management system dedicated to reporting and ensuring the reliability, accuracy and compliance with the CSRD Directive and ESRS standards. In accordance with the Procedure, the reporting process is coordinated by the Parent Company's Sustainability Team, under the supervision of the CFO and the CEO, with the involvement of the Board of Directors and the Control, Risk, Related Party Transactions and Sustainability Committee. In 2026, following the completion of the double materiality analyses, the Company will carry out a scoping exercise to identify the disclosure requirements relevant to the Internal Control System, with the aim of formalising the Risk Control Matrix for a disclosure requirement identified as a pilot, in order to continue ensuring the Group's alignment with best practices in the areas of governance and internal control.

Considering the changing regulatory landscape in sustainability, the Dexelance Group has worked to develop an internal control and risk management system for sustainability reporting (ICSR), which includes processes, procedures and controls to ensure the quality, reliability and transparency of the sustainability information. The system is integrated with the Enterprise Risk Management (ERM) process and is supported by the Internal Audit Office to verify the adequacy and effectiveness of all controls. Reporting activities are led by the Parent Company's Sustainability Team, which coordinates the double materiality analysis process and, in collaboration with the Internal Audit Office, supports management in identifying the sustainability issues most relevant to the Group and its stakeholders, planning and implementing the stakeholder engagement activities deemed necessary under the Directive and in line with the reporting standard. It also manages the collection, analysis and validation of data with the involvement of the ESG Ambassadors and the Data Owners of the individual subsidiaries.

The Group uses the double materiality analysis to identify and prioritise sustainability

risks. In particular, the development of the financial materiality process is based on the Enterprise Risk Management process and the annual updating of the Risk Register, thereby harmonising sustainability risks with financial risks. Working in collaboration with the CFO, the Sustainability Team conducts the assessments and presents the results to

the CEO, the Board of Directors, and the Control and Risk, Related Party Transactions and Sustainability Committee.

The main sustainability related risks that emerged included those concerning physical climate and transition risks that pose a significant threat to both corporate infrastructure and the value chain, also in terms of an adaptation to new regulatory requirements in this area. Another critical element is the dependence on key raw materials, whose possible price increase or scarcity could affect the Group's production capacity and profitability. Waste management is also a significant risk, as non-compliance with environmental regulations could expose the company to financial penalties and damage its reputation, undermining the credibility of its sustainability commitments. In terms of safety and human capital, the Group has identified the risk of occupational accidents and illnesses, which could result from exposure to hazardous substances and/or repetitive/ergonomic movements, and which could entail additional insurance costs, as well as repercussions on the Company's reputation. Finally, dependence on key figures is a further critical factor; the absence of succession plans for the Group's management and strategic roles could lead to a skills shortage and thereby compromise the quality of management and competitiveness in the long run and reduce the capacity for strategic development.

For each of these risks, Dexelance has identified mitigation strategies that will include, for

example, the adoption of specific policies and procedures that establish clear and consistent guidelines for managing risks and defining roles and responsibilities to ensure that each risk is monitored and managed by specific, qualified company figures. As part of these policies and procedures, the control procedures have been structured to ensure that business processes are carried out in compliance with internal and external regulations, through an effective separation of duties (SOD), thereby avoiding conflicts of interest and improving the reliability of the controls. In addition, periodic risk assessment through audits and continuous monitoring allows for the early detection of any areas of vulnerability and the adoption of corrective actions.

The findings arising from the risk analysis and the operation of the internal control system are incorporated into the sustainability reporting process, thereby ensuring a consistent

link between risk management, control measures and the information disclosed to stakeholders. In line with the approach taken for the risk analysis, Dexelance has instituted specific verifications of the sustainability data with the aim of ensuring their accuracy and completeness in accordance with the disclosure requirements set out in the reporting standards. The Parent Company's Sustainability Team, with the support of the ESG Ambassadors and the Data Owners, is responsible for the accuracy and completeness of the information collected. The validation process involves the Parent Company's Sustainability Team's annual review of the data, including the analysis of deviations from the previous year through internal verifications that ensure the information's completeness and reliability.

The Sustainability Statement is submitted to the Group's CFO and CEO, who review, examine and approve it; to the Control, Risk, Related Party Transactions and Sustainability Committee, which examines its content in relation to the applicable reporting principles; to the Board of Directors, which reviews and approves it, verifying that it has been prepared and published in accordance with current legislation in force, consistently with the requirements for the consolidated financial statements; to the Board of Statutory Auditors, which monitors compliance with the relevant legislation and the adequacy of the organisational, reporting and control systems; the Independent Auditors, who carry out a limited assurance engagement through verification procedures, taking into account the documentary evidence, data sampling and analysis of the information contained in the Report, and who issue a Report pursuant to Article 14-bis of Legislative Decree 39/2010.

‌Sustainability strategy

[SBM-1] Strategy, business model, and value chain

The Group's business area, products, and companies

Dexelance Group is active in the furniture and lighting sector. The 12 manufacturing companies belonging to the Group are divided into five strategic business areas (SBAs):

"Furniture", "Lighting", "Luxury Contract", "Kitchens and Systems" and "Omnichannel go-to-market".

Gervasoni, Meridiani, Saba Italia, Gamma Arredamenti and Turri work in the "Furniture" strategic business area, providing a wide range of products for interior and exterior furnishings; Davide Groppi, Flexalighting and Axo Light belong to the "Lighting" strategic business area; the "Luxury Contract" strategic business area includes two companies, Modar and Cenacchi International, which focus on creating bespoke, prestigious furnishings for luxury stores, showrooms, residences, hotels, and offices; the "Kitchen & Systems" strategic business area consists solely of Cubo Design, which focuses on designing, manufacturing and marketing modular kitchen solutions and systems through the Binova and Miton Cucine brands; the "Omnichannel go-to-market" strategic business area consists solely of Mohd, which distributes high-end design products and manages furnishing projects worldwide through a highly innovative, single omnichannel business model.

The foregoing description of the business areas aligns with the information prepared in accordance with IFRS 8, as reported in the "Sector information" section of the "Management Report, Consolidated and Separate Financial Statements as at 31 December 2025" of the Dexelance Group.

‌10No products offered by Dexelance were found to be prohibited in certain markets.

One of Dexelance's objectives is to support the sales structures of its subsidiaries and to promote growth and revenue acceleration also through expansion and increased penetration into new markets. In 2024, the majority of Dexelance revenue was generated from the retail channel, mainly due to the presence of the above mentioned independent, multi-brand stores located in more than 130 countries that feature the Group's brands. The remaining share of revenue comes from the B2B or "Contract" channel, in which Dexelance companies have specific expertise in various target sectors, such as luxury brand retail stores and boutiques, residential, high-end hospitality, and boating. In addition to the domestic market, the Group's main areas of operation are the countries of Central Europe, such as France, Germany and the United Kingdom, and North America, namely the United States and Canada.

For information on the number of employees per geographic area of the Dexelance Group, please refer to the section "Characteristics of the Group's people" in the chapter "Company Information".

Group Strategic Sustainability Guidelines and ESG Manifesto

In the ESG Manifesto defined and approved in the course of 2024, Dexelance defined and formalised the strategic guidelines of the Group's journey to sustainability, which have been transposed by all the subsidiaries in a three year action plan with the aim of addressing the main challenges related to this issue, working on a common ground and

taking into account the material ESRS identified with the double materiality analysis. The Group's sustainability strategy is structured around three macro impact areas: environment, people, and ethical and sustainable business management.

In the environmental field, the Group is committed to reducing the impact of climate change by controlling climate changing emissions and adopting energy efficiency initiatives. Furthermore, Dexelance has set itself the goal of making its offices and warehouses more sustainable by adopting responsible operational practices and promoting eco design and circularity across its various business units, all with a view to optimising the use of available resources, reducing waste and, more generally, gaining an advantage in terms of economic efficiency and long-term competitiveness.

By virtue of these commitments, in 2025, several Group companies carried out targeted energy related initiatives, primarily involving the installation of solar panels. In particular, Gamma Arredamenti has expanded its existing system, increasing its capacity to generate energy from renewable sources and further reducing its reliance on traditional energy sources; at the same time, Turri, Saba Italia and Mohd have begun installing new solar systems at their respective factories, thereby taking a significant step towards greater energy self-sufficiency with the aim of the full operation of these systems in 2026.

In addition, most of the Group's companies have installed drinking water dispensers in their offices and production departments for use by all employees, and have provided branded, reusable water bottles. This initiative is designed to reduce the consumption of single use plastic and the generation of waste.

These initiatives form part of a broader Group strategy to improve energy efficiency, reduce the impact of its activities on the surrounding environment and cut CO₂ emissions. As further evidence of its commitment, the Group has adopted a Group Environmental Policy that establishes common principles and guidelines on environmental sustainability. As regards its people, Dexelance has committed to keeping the protection of human rights and to promoting the creation of a fair and inclusive working environment at the centre of its strategy, raising awareness among employees about the principles of equality, diversity and inclusion and setting itself the goal of launching initiatives aimed at

cultivating employee satisfaction and motivation to promote their well-being and their professional development. The Group is also committed to strengthening ties with local communities by contributing to the development of craft skills and to economic growth. In line with these principles, in 2025 the Group adopted a Diversity and Inclusion Policy and a Working Hours Management Policy, with the aim of ensuring equal opportunities and fair working conditions, as well as promoting a healthy work-life balance. In particular, in line with Dexelance's commitment to implementing organisational measures designed to improve the quality of the working experience, several Group companies have introduced flexible working arrangements for their employees.

Furthermore, most of the companies have joined the Group's corporate welfare programme, a structured platform that grants employees a comprehensive range of financial benefits, as well as dedicated services and initiatives. The programme forms an integral part of the overall remuneration package, designed to boost employees' purchasing power and effectively meet their key needs.

Finally, with the aim of consolidating its governance structure, the Group aims to integrate more and more ESG criteria into its decision making and operational processes. Dexelance will work to extend the Group's ESG commitments to additional levels in the value chain by involving suppliers and retail partners in responsible management practices.

The ESG Manifesto and the strategic guidelines of Dexelance's sustainability journey are integrated into the Group's overall strategy in a way that considers the different business areas to which the subsidiaries belong.

Specifically, for the companies belonging to Dexelance's Furniture, Lighting and Kitchen & Systems strategic business areas, the strategy is based, on the one hand, on targeted actions to increase the visibility of the brands in the various channels and markets to support their positioning within the competitive landscape of their respective sectors, and on the other hand, on activities and tools dedicated to the retail partners that provide a constantly improved performance and are designed for the needs of the different markets, all in order to increase the degree of loyalty of the distribution network and

establish long-term partnerships. In terms of products, companies of the Group cultivate relationships with architects and designers to promote the creation of new products and collections that are increasingly innovative in terms of function and quality, long lasting and with less environmental impact, terms of production and end-of-life and disposal, as well as identity design, with the aim of embracing market trends that are progressively evolving towards an increasingly holistic approach in the evaluation of consumer brands. Regarding the Luxury Contract strategic business area, the growth strategy implemented by the Dexelance companies focuses more on expanding the customer base, whilst maintaining the very high quality of the products and service offered to customers. This objective entails a continuous effort and investment in the company structures to make production processes more and more efficient, flexible and sustainable from an economic standpoint, as well as in terms of reducing energy and emission impacts, as well as to attract and train new talent, technically and professionally, thereby cultivating the internal know how generated by the many years of experience in the sector. The impetus from major customers, who are active in the world of fashion and luxury jewellery and who are increasingly aware of sustainability issues, acts as a strong driver for ESG engagement and implementation not only for the companies in the Dexelance segment, but also for all upstream actors in the value chain.

Finally, regarding the Omnichannel go-to-market strategic business area, the growth

strategy is based on strengthening and enhancing the omnichannel model, which comprises digital presence, physical presence and advanced design services. The ongoing development of e-commerce and digital tools is aimed at enhancing the customer experience and accessibility, with a view to supporting complex projects on an international scale and further strengthening partnerships with architects, interior designers and industry professionals. Sustainability is a key focus of this development model. In addition to applying eco-sustainability criteria when selecting the brands we distribute and our suppliers - prioritising responsible production, high quality materials and supply chains geared towards durability - the strategy also aims to reduce the carbon footprint of our internal operations. This initiative includes the installation of a solar

power system at the main warehouse in Torregrotta, which aims to improve energy efficiency and reduce the environmental footprint of our logistics operations, in line with a vision of responsible, long-term growth.

Value chain

The Dexelance value chain was developed through a structured consultation process with the point persons at the Group's subsidiaries. These point persons provided a detailed mapping of the stages that make up the respective value chains, as well as the products and processes involved. The information gathered was then consolidated into a unified representation of the Group's value chain that takes into account the diversity of each individual company and enhances the synergies between them. Through this approach, the data presented are not the result of estimates but derive directly from the in house know how of the individual companies, which have made their knowledge and operational experience available, thus ensuring a high degree of accuracy and reliability to the analysis.

The Dexelance Group offers a diverse range of high-quality products and solutions with a strong aesthetic, innovative and sustainable content. For customers and consumers, Dexelance aims to provide distinctive, tailor-made solutions that emphasise craftsmanship and technological innovation to deliver premium experiences in terms of quality, functionality and design. Investors can benefit from a solid and diversified business model, supported by a portfolio of prestigious brands and a strategy geared towards sustainable growth and expansion in international markets. In addition, for other stakeholders, the Group is committed to promoting responsible production practices, favouring the circularity of materials, the adoption of low environmental impact processes and the involvement of local communities, with the aim of creating shared value and strengthening the Group's long-term positioning.

The products made and distributed by the Group's companies may vary considerably, but the search for excellence, quality of design, and attention to detail remains a common

denominator throughout the value chain. More specifically, the Dexelance Group's value chain is divided into three phases:

• Procurement and processing of raw materials: the phase of obtaining and processing natural resources, in which the companies' suppliers procure raw resources such as marble, iron, rubber, wood and chipboard, and, to a lesser extent, animal hides, down feathers, and textile fibres, and then process them to render them suitable for use in subsequent production stages;

• Transport from suppliers of raw materials to suppliers of semi-finished products: the transport of raw materials to suppliers of semi-finished products;

• Creation of semi-finished products: the creation of semi-finished products from the raw materials. The semi-finished products mainly used by Group companies include painted materials, electrical components, wooden structures covered with upholstery, upholstery fabrics, metals and glass;

• Transport from suppliers of finished products: the transport, within the Omnichannel-go-to-market strategic business area, of finished products to Group companies;

• Packaging production: the phase in which packaging is produced to enable the product to be properly preserved during transport and sale. This phase involves the use of packaging such as cardboard, bubble wrap, wood, polystyrene, and plastic products (labels, envelopes, adhesive tape, etc.);

• Inbound logistics: the transport of all elements to the companies to enable the next stage of production.

  The Dexelance Group's Own Operations - Product Development and Production: this covers the internal activities that Group companies carry out to develop new products and manage production. This phase is considered crucial to ensure that the final products meet the needs of the market while reflecting the required standards of quality, image, sustainability and competitiveness. In particular, this comprises the following activities:

• Product design definition: this involves the aesthetic, functional and technical design of the product, drawing on the expertise of architects, designers and other creative professionals. In the process of defining the design, industrial designers and architects work to ensure that the product is designed to have an aesthetic that is consistent with the image of the Group's various brands, a design that is functional in use, excellent quality, functional to the durability of the product and, where possible, a lower environmental impact of the product in all its life stages, starting with the selection of materials with a lower environmental impact, such as recycled and recyclable materials, and ending with the search for solutions that allow for easy future restoration and reduce the need for new natural resources. At this stage, attention is also paid to the efficiency of the production process and the reduction of waste. The product design phase can be in-house or outsourced;

• Research and development: the phase in which new materials and technologies are

  tested with the aim of creating cutting-edge products that respond to market needs, anticipating trends and offering solutions that meet high quality, high performance and sustainability criteria. The research and development phase tends to be in-house;

• Support processes: this includes the prototyping, testing and validation of designed products. Once the product concept is defined, prototypes are developed to test functionality, quality and performance. The prototyping phase allows for modifications and optimisations before large-scale production;

• Production: the phase that includes production planning (management of human resources, machinery and raw materials) and the actual production processes through the use of specific machinery or, in the case of products with a high craftsmanship content, with the support of experienced, local craftspeople. This

  phase is accompanied by specific checks to ensure the correctness of all operations. As with design and R&D, some production steps may be in house and others external, depending on the type of product or the materials needed to make it;

• Product assembly and finishing: a process in which the various product components that have been prepared in previous stages (such as production and semi-finished products) are brought together to form the final product. Assembly can be automated with machine or manual support. The aesthetic finishing is essential to make the product attractive and conform to the required visual standards. This may include sanding, painting, chrome plating or the application of surface treatments to improve the product's appearance. To improve the product's durability and protect it from wear, corrosion or environmental conditions, treatments such as galvanising or powder coating (especially for metals) may be applied. Assembly and finishing include the packaging stage, which ensures the integrity of the product during transport and sale;

• Production waste management: responsible waste management helps Dexelance

  reduce its environmental impact, comply with waste regulations and improve the overall efficiency of production processes. The types of waste most commonly produced are material waste (e.g. metals, textiles, glass, and wood), process waste (e.g. chips, powders, paint waste), packaging waste (plastic, cardboard, plastics, and filling materials), and electronic waste (when the manufacturing involves electronic components, these can be defective or obsolete circuits, wires, or electronic components). The Group works to minimise waste generation through careful production planning and process optimisation.

  Downstream - Sales, Use & Waste Management: this refers to the phases following production and covering the distribution, sale, consumer use of the product and, finally, the management of waste and post-consumer materials. In particular:

• Warehouse management: a phase that enables the company to optimise inventory, reduce operating costs and improve overall efficiency;

• Customer care: a phase that includes the management of orders, pre and post sales advice, and the offer of warranties or support for the resolution of any problems related to the products purchased;

• Outbound logistics: transport of finished products to points of sale, with a view to optimising costs and lead times;

• Sales to customers and consumers: in the retail channel, the Group mainly uses a network of business retail partners to bring its products to the market. These business retail partners may include multi brand retailers, online shops, and distributors. Sometimes, as in the case of Directly Operated Stores (DOS) or the Omnichannel-go-to-market, the Group is directly involved in the sale of products to consumers. Regarding the contract sales channel, Dexelance directly reaches different types of B2B (business-to-business) customers;

• Use of the product by the end consumer: the phase of the product's use by the end consumer. For complex or technological products, manuals are offered to facilitate the proper use of the product;

• Product end-of-life and waste disposal: the Dexelance Group promotes the circular economy by providing instructions for maintenance and replacement of product components. Some products that reach the end of their useful life can be dismantled, and reusable materials, such as textiles, metals, plastics, can be separated for recycling. As regards Lighting, even though dismantling instructions are not provided, the consumer is provided with disassembly instructions that enable the identification of the light source, in accordance with EU Regulation 1542/2023. This approach ensures compliance with European regulations to facilitate the proper replacement and subsequent recovery of components.

[SBM-2] Interests and views of stakeholders

Stakeholders and dialogue channels

Dexelance identified, through specific activities, the main stakeholders for its Group. They are: