EL En S p A : Annual Financial Report as of December 31, 2025

About this update from El.en. S.p.a.

Annual Financial Report as of December 31, 2025 EL.EN. S.p.A. ANNUAL FINANCIAL REPORT AS AT 31 DECEMBER 2025 El.En. S.p.A. Headquarters in Calenzano (FI) - Via Baldanzese no. 17 Share capital underwritten and deposited: € 2.612.497,94 (*) Registered with the Florence Business Register no. 03137680488 (*) At the approval date of this document INDEX CORPORATE BOARDS OF THE PARENT COMPANY 4 MANAGEMENT REPORT 2025 5 INTRODUCTION 5 REGULATORY FRAMEWORK 5 SIGNIFICANT EVENTS WHICH OCCURRED DURING THE FINANCIAL YEAR 2025 5 DESCRIPTION OF THE GROUP'S ACTIVITIES 9 DESCRIPTION OF THE GROUP 12 ALTERNATIVE NON-GAAP MEASURES 13 PERFORMANCE INDICATORS 14 GROUP FINANCIAL HIGHLIGHTS 15 CONSOLIDATED INCOME STATEMENT AS AT 31 DECEMBER 2025 21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND NET FINANCIAL POSITION AS ΑΤ 31 DECEMBER 2025 23 RECONCILIATION CHART COMPARING THE CONSOLIDATED FINANCIAL STATEMENT WITH THE FINANCIAL STATEMENT OF THE PARENT COMPANY 25 RESULTS OF THE PARENT COMPANY EL.EN. S.p.A. 26 SUBSIDIARY RESULTS 31 RESEARCH AND DEVELOPMENT ACTIVITIES 36 RISK FACTORS AND PROCEDURES FOR THE MANAGEMENT OF FINANCIAL RISKS 40 STOCK OPTIONS OFFERED TO ADMINISTRATORS, COLLABORATORS AND EMPLOYEES 45 STOCK GRANT 46 TREASURY STOCK 47 STAFF 48 CORPORATE GOVERNANCE AND OWNERSHIP STRUCTURE IN APPLICATION OF IT. LEG. D. 231/2001 49 REPORT ON REMUNERATION AND REMUNERATION PAID pursuant to Articles 123- ter of the TUF and 84- quater of CONSOB Reg. 11971/1999 49 SUSTAINABILITY STATEMENT 49 INFORMATION PURSUANT TO REGULATION (EU) 679/2016 ON THE PROTECTION OF PERSONAL DATA 49 INTERCOMPANY AND RELATED PARTY TRANSACTIONS 49 OPT-OUT REGIME 50 OTHER INFORMATION 50 SUBSEQUENT EVENTS 51 CURRENT OUTLOOK 51 DESTINATION OF THE NET INCOME 51 CONSOLIDATED SUSTAINABILITY STATEMENT AS AT 31 DECEMBER 2025 52 GENERAL INFORMATION 53 ENVIRONMENTAL INFORMATION 106 SOCIAL INFORMATION 135 GOVERNANCE INFORMATION 170 CERTIFICATION OF THE SUSTAINABILITY STATEMENT PURSUANT TO ART. 81- TER , PARAGRAPH 1 OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AND SUBSEQUENT AMENDMENTS AND ADDITIONS 175 CONSOLIDATED FINANCIAL STATEMENT OF THE EL.EN. GROUP AS AT 31 DECEMBER 2025 176 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT 176 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 177 CONSOLIDATED INCOME STATEMENT 179 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 180 CONSOLIDATED CASH FLOW STATEMENT 181 CHANGES IN THE CONSOLIDATED SHAREHOLDERS' EQUITY 182 EXPLANATORY NOTES 183 DECLARATION OF THE CONSOLIDATED FINANCIAL STATEMENT IN CONFORMITY WITH ART.81- TER OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AND SUBSEQUENT AMENDMENTS AND ADDITIONS 247 SEPARATE FINANCIAL STATEMENT OF EL.EN. S.p.A AS AT 31 DECEMBER 2025 248 NOTES TO THE SEPARATE FINANCIAL STATEMENT 248 STATEMENT OF FINANCIAL POSITION 249 INCOME STATEMENT 251 STATEMENT OF COMPREHENSIVE INCOME 252 CASH FLOW STATEMENT 253 CHANGES IN THE SHAREHOLDERS' EQUITY 254 EXPLANATORY NOTES 255 DECLARATION OF THE SEPARATE FINANCIAL STATEMENT IN CONFORMITY WITH ART.81- TER CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AND SUBSEQUENT AMENDMENTS AND ADDITIONS 300 The Italian version of this financial statement is the official document. In the event of any discrepancies between the English translation and the Italian original, the Italian version shall prevail. CORPORATE BOARDS OF THE PARENT COMPANY Board of Directors CHAIRMAN AND MANAGING DIRECTOR Gabriele Clementi MANAGING DIRECTOR Andrea Cangioli BOARD MEMBERS Fabia Romagnoli Michele Legnaioli Alberto Pecci Roberta Pecci Giovanna D'Esposito Board of Statutory Auditors PRESIDENT Carlo Carrera STATUTORY AUDITORS Paolo Caselli Rita Pelagotti Executive officer responsible for the preparation of the financial statements pursuant to It. Law 262/05 Enrico Romagnoli Executive officer responsible for the preparation of the sustainability statement pursuant to It. Leg. D. 125/24 Caterina Delibassis Independent Auditor EY S.p.A. MANAGEMENT REPORT 2025 INTRODUCTION Dear Shareholders, During 2025, the El.En. Group continued its growth path, once again increasing its revenues despite the uncertainty permeating several key markets as a result of wars and the tariff measures implemented by the US Administration. Revenue grew by approximately 4%, in equal measure across both the medical and industrial sectors. Operating profitability remained strong and growing in the medical sector, while the geographical sales mix penalised margins in the industrial sector. During the financial year, the disposal of laser cutting operations in China was completed, specifically the majority stake in Penta Laser Zhejiang. From a strategic perspective, the operation determines and is part of a trend towards an increasing weight of the medical sector within the group's activities. Regarding the group's economic and financial results, the operation contributes to the difference in net income between the 2024 and 2025 financial year, where the former benefited from extraordinary positive income components for EUR 5 million, while the items related to the result from operations held for sale and the net income from the disposal of shares entailed costs of 10,4 million in 2024 and 6,6 million in 2025 recorded in the so-called Result from discontinued operations . The 2025 financial year therefore closes with a profit attributable to the group of EUR 43,4 million, down from 51,6 million in 2024. Conversely, the group's cash generation was excellent, with a 62 million increase in the net financial position, thanks to the extraordinary contribution of approximately 24 million arising from the disposal of Penta Laser, but above all due to excellent operating profitability and precise working capital management. This allowed cash flows generated by current activities to improve the financial position, net of the payment of approximately 18,7 million in dividends and an equivalent amount allocated to investments in fixed assets. Order intake was solid and became increasingly convincing in the final months of the year, allowing us to look with confidence and optimism at the performance of the coming months and the results expected for 2026. Since the end of February, the international scene has been once again shaken by the state of war between Iran, the United States and Israel, also involving Gulf countries. The forecast for the year remains optimistic: as of today, we remain cautious in our sales forecasts for Gulf countries, but we are confident that we can operate well in other markets, continuing the group's growth path through 2026. REGULATORY FRAMEWORK In compliance with European Regulation No. 1606 of 19 July 2002, the El.En. group prepared its consolidated financial statement as at 31 December 2025 in accordance with the International Financial Accounting Standards endorsed by the European Commission. Pursuant to It. Leg. D. 38/2005, as from the financial year 2006 also the annual financial statement of the parent company El.En. S.p.A. (separate financial statement) has been prepared in accordance with international accounting standards (IFRS); reference will be made to them when presenting the data relating to the Parent Company. SIGNIFICANT EVENTS WHICH OCCURRED DURING THE FINANCIAL YEAR 2025 At the end of February 2025, the group sold an equity investment of approximately 46% in its Japanese subsidiary Withus, thus transferring control to the minority shareholders who had founded the company with El.En. in 2007. The direct distribution in Japan of professional aesthetic systems produced in Italy had been interrupted for several years, and the company now mainly carries out service activities on the installed base and the sale of locally sourced beauty products. Within this scope, the commercial relationship with the parent company became of secondary importance. Following the financial crisis of Withus's main customers, the accumulated losses and the bleak outlook for the business conducted up to now have suggested leaving local management with the burden and opportunity to relaunch Withus's activities on a new basis. By virtue of the residual equity investment held by the group, equal to 33%, starting from March 2025 the consolidation of the investment in the consolidated financial statements is carried out using the shareholders' equity method. On 29 April, the Ordinary Shareholders' Meeting of the parent company approved the financial statement for the year 2024, which showed a net income of EUR 33.988.152,00, and also resolved: to distribute to the shares in circulation on the ex-dividend date (coupon no. 4 on 19 May 2025 - pursuant to Art.2357- ter , paragraph 2 of the It. Civil Code - a dividend, equal to EUR 0,22 gross per outstanding share for a total amount as of the date of the resolution of 17.607.464,60 euros, it being understood that said amount could be increased by any new amounts that may be required for the distribution of the dividend to the shares outstanding as of the ex-dividend date resulting from the exercise of the 2016-2025 stock option plan in the period between the date of the resolution and the record date of 20 May 2025; to allocate the residual amount equal, as of the date of the resolution, to EUR 16.380.687,40 to the extraordinary reserve, it being understood that this amount could be decreased by any new amounts required for the distribution of the dividend from the shares outstanding as of the ex-dividend date resulting from the exercise of the 2016-2025 stock option plan in the period between the date of the resolution and the record date of 20 May 2025; to pay the above dividend from 21 May 2025. The Ordinary Shareholders' Meeting also: approved the report on Remuneration and compensation paid, in accordance with Art. 123- ter of the T.U.F. paragraph 3- bis and Art. 123- ter of the TUF paragraph 6. appointed the Board of Statutory Auditors for the three-year period 2025-2027 and therefore until the approval of the financial statement as at 31 December 2027, designating Carlo Carrera as president and appointing Rita Pelagotti and Paolo Caselli as standing statutory auditors and Gino Manfriani and Elisa Raoli as alternate auditors. The standing statutory auditors Paolo Caselli and Rita Pelagotti and the alternate statutory auditor Gino Manfriani were drawn from the slate of candidates presented by the shareholder Andrea Cangioli (slate no. 1); the President Carlo Carrera and the alternate auditor Elisa Raoli were selected from the slate presented by a group of asset management companies and other institutional investors (slate no. 2). The elected candidates declared that they possess the independence requirements set forth in Article 148 of the TUF and the other requirements required by law and the articles of association. The standing members of the Board of Statutory Auditors declared that they owned the following equity investments as at 31 December 2024: Carlo Carrera: no equity investments Paolo Caselli: no equity investments Rita Pelagotti: no equity investments resolved to set, for the entire duration of the assignment, the annual compensation of the standing members of the Board of Statutory Auditors, at a total of EUR 34.000,00 for the President and a total of EUR 24.000,00 for each of the standing statutory auditors. resolved, after revoking the unused portion of the authorisation already granted by the same shareholders' meeting on 29 April 2024, to authorise the purchase and disposal of treasury stock pursuant to Articles 2357 and 2357- ter of the It. Civil Code, Art. 132 of It. Leg. D. no. 58 of Art.144- bis of the CONSOB regulation. Treasury stock will be purchased as a result of the following possible, competing or alternative, purposes: allocations or distributions to employees and/or collaborators and/or members of the administration or control bodies of the company or its subsidiaries; exchanges or swaps of equity investments within the scope of and on the occasion of strategic transactions. The authorisation was granted for a period of 18 months from the date of the resolution, for the purchase, in one or more instalments, of a maximum number of ordinary shares of the company, the only category of financial instruments currently issued, which in any case does not exceed one-tenth of the share capital. Purchases of treasury stock must be made in compliance with the criterion of equal treatment of shareholders in accordance with Art. 132 of the T.U.F. and Art. 144- bis of the Issuers' Regulation. The shareholders are authorised to purchase at a price that is at the minimum no lower than the closing price of the security recorded in the stock exchange session on the day preceding the completion of each individual transaction, minus 10%, and at the maximum no higher than 10% of the official trading price recorded on the day preceding the purchase. The Board was given authorisation to sell or dispose of, within 10 years of the resolution, the purchased shares at a price, or countervalue in the case of corporate transactions, of no less than 95% of the average of the official trading prices recorded in the five days preceding the sale or disposal. approved the guidelines for a "Compensation Plan based on financial instruments for employees and collaborators of the Company and its subsidiaries" intended for individuals identified at the Board's discretion, following the approval of the Plan by the Shareholders' Meeting, from among employees deemed worthy of incentives and recognition and who hold or are destined to hold roles deemed to be of key or strategic importance within the company and the group on the basis of management and strategic considerations. Based on the recommendations of the Remuneration Committee, subsequently approved by the Board of Directors on 18 March 2025, collaborators and employees (belonging to the category of executives, middle managers and white collar workers) of the Issuer and/or its Subsidiaries who, at the sole and discretionary judgement of the Board of Directors, play a key role, thereby actively contributing to the development of the group's business and the creation of long-term value, may be Beneficiaries of the Plan. The 2025-2028 Stock Grant Plan envisages the free assignment to the identified Beneficiaries of the right to receive, again free of charge, ordinary shares of El.En. Treasury stock of which the Company has acquired ownership will be used to service the Plan, pursuant to and for the purposes of Articles 2357 et seq. of the It. Civil Code. In particular, the Shareholders' Meeting set the maximum total number of El.En. ordinary shares. at the service of the 2025-2028 Stock Grant Plan at 200.000 Shares, equal to 0,249% of the Company's current share capital, all ordinary shares with no expressed par value. The Plan is structured in 4 (four) Vesting Periods. approved the "Compensation Plan based on financial instruments for the Company's general manager" pursuant to Art. 114- bis of It. Leg. D. 58 /1998 intended exclusively for the Company's General Manager, Paolo Salvadeo, identified by the Board of Directors as the key figure in defining and achieving the company's strategic and performance objectives with reference to the achievement of the Group's objectives. The 2025-2028 Stock Grant Plan for the General Manager of El.En. s.p.a. envisages the free assignment to the General Manager of El.En. shares. A maximum of 136.000 shares, equal to 0,169% of the current share capital of El.En. S.p.A., will be allocated to the Plan through the utilization of treasury stock in the Company's portfolio and/or new shares purchased on the market. Lastly, the extraordinary Shareholders' Meeting approved the amendment to Article 20 (Rules of Operation of the Board of Directors), Sections E (Delegation of Powers) and G (Professionalism Requirements for the Executive officer responsible for the preparation of the financial statements) of the articles of association, and also established the procedures for appointing the Executive officer responsible for the preparation of the sustainability statement and the requirements of integrity and professionalism. On 2 April 2025, "Liberation Day," the President of the United States of America announced and then implemented the imposition of import duties on goods, duties that affect products exported by the El.En. Group to the United States. The rate, initially raised to 20%, was temporarily reduced to 10%. The recent confirmation of 15% tariffs on our sales to the American market, the most important for El.En. Group exports, could impact the volumes and profitability of sales to the United States. "Laser Cutting" Business unit On 15 July 2025, upon payment of the agreed consideration by the buyer, the process was concluded and the agreement for the sale of a 59,18% stake in Penta Laser Zhejiang Co., Ltd. (hereinafter "PLZ") became fully effective. PLZ is the parent company of the Chinese business unit dedicated to laser cutting. The stake was sold to Yangtze Optical Fibre and Cable Joint Stock Limited Company, a joint-stock limited liability company incorporated in the People's Republic of China, hereinafter "YOFC"). With headquarters in Wuhan and listed on the Shanghai and Hong Kong stock exchanges, YOFC specialises in the production of telecommunication fibre optics. Benefiting from its technological and manufacturing background, it recently entered the power laser sources business through its subsidiary Everfoton, also with headquarters in Wuhan. YOFC was born from an initiative by Philips which was subsequently acquired by Prysmian. The purchase and sale agreement was the subject of the procedure at the Italian Prime Minister's Office pursuant to It. Decree Law no. 21/2012 (known as "Golden Power") which was successful. Ot-las s.r.l. sold to YOFC a total of 28.698.288 shares of the company Penta Laser Zhejiang Ltd., Co. for a consideration of approximately RMB 240 million. Following the sale, YOFC therefore owns 59,1837% of PLZ, while the El.En. Group, through Ot-las s.r.l., continues to hold an equity investment of 19,79%. The agreed consideration for the sale of the equity investment in PLZ was determined on the basis of a company value of RMB 405 million with reference to the 2024 draft financial statement and taking into account certain provisions that reduced the price compared to that previously envisaged for the sale of the Chinese company under the preliminary agreements signed in November 2024. The executed agreement includes: a price adjustment clause, allowing for a potential reduction of up to 5% of the purchase price, contingent on the financial results of the Chinese group during the 2025-2027 three-year period; seller's liability for certain findings from the due diligence process conducted by YOFC. This liability is subject to: general indemnity cap of up to 10% of the purchase price, without prejudice to specific cases which may give rise to uncapped liability. The agreements also envisage the non-transferability of Ot-las's residual equity investment in PLZ until the approval of the 2027 financial statement, as well as the right of pre-emption and/or co-sale in the event of a sale after that date, and the right of Ot-las and other minority shareholders of PLZ to sell their shares to YOFC, after the approval of the 2027 financial statement, at a price corresponding to the company's valuation of 1,05 times its shareholders' equity at the end of 2027. By virtue of the residual quota held by the group, equal to 19,79%, starting from July 2025 the consolidation of the equity investment in the consolidated financial statements is carried out using the shareholders' equity method. The proceeds from the sale of the equity investment were used primarily to repay the loans granted to the seller Ot-las by the parent company El.En. Spa, and therefore ultimately to consolidate the net financial position of the parent company and of the group. In the month of November, El.En. S.p.A. purchased 1,115% of Ot-las Srl from the minority shareholder, thus becoming the sole shareholder of the company at the end of the year. For changes to the scope of consolidation, please refer to the relevant paragraph in the notes to the financial statement. DESCRIPTION OF THE ACTIVITIES OF THE GROUP Born in 1981 from the intuition of a university professor and one of his students, El.En. has developed over the years into a structured and dynamic industrial group specialised in the production, research and development, distribution and sales of laser systems. The laser, acronym of " Light Amplification by Stimulated Emission of Radiation ", a fascinating technology invented in 1960, is the technological core of the Group. This light emission with such particular characteristics (mono-chromaticity, coherence, brightness) has an ever growing number of applications which have given rise to actual industrial sectors and have radically changed the way other sectors operate. Telecommunications, sensors, printers, lithography, atmospheric detection, advanced vision systems, a variety of processes in industrial manufacturing, as well as medical and aesthetic applications have benefited from the innovations made possible by the versatility, precision and reliability of laser systems. Scientific research and applied industrial research will still find innovative applications for laser technology, which we will take advantage of both directly and indirectly. Among the many types of laser sources and applications developed to date, the group has specialised in the creation of systems for two main application areas: laser systems for medicine and aesthetic, which we call the Medical sector, and laser systems for manufacturing processes, which we call the Industrial sector. Each of the two sectors includes numerous differentiated segments for the specific application of the laser system, and therefore for the specific underlying technologies and for the type of user. As a result, the group's business, generically defined as production of laser sources and systems, includes a considerable variety of products catering for many types of customers and markets, also by virtue of the global presence of the Group that leads it to adapt to the peculiarities of every region of the world in using our technologies. Over time, the Group has taken on the current structure by setting up new companies and taking over others. The activities are conducted by this structured group of companies that operates in the production, research and development, distribution and sales of laser systems. Specific businesses, sometimes related to a single geographic market, sometimes targeting a particular product niche, and sometimes a broader scope of activities across technologies, applications and geographic markets are managed by specially committed operating structures and companies. The activity of all group companies is coordinated by the parent company so that adequate resources are made available for the individual business segments to better serve the target markets, taking advantage of the dynamism and flexibility of the individual business units without losing the advantages of coordinated management of certain resources. The comprehensive offer and the ability to segment certain markets in order to maximise the total share held by the group, together with the opportunity of involving managerial skills in their capacity as minority shareholders, underlies the corporate structure of the group. The number of member companies must always be related to the linear division of the business, which we identify, for reporting but above all for strategical purposes, as follows: MEDICAL SECTOR Aesthetic Surgical Physiotherapy Medical Service INDUSTRIAL SECTOR Cutting Marking Laser sources Restoration Industrial Service The sale of systems is associated to the after-sales service, essential support to installation, maintenance and correct use of our laser systems and represent a significant source of revenues for spare parts, consumables and technical assistance services. The sale of surgical consumables, specifically single- and multi-use sterile optical fibre optics used in urology surgeries, is becoming increasingly important in post-sales revenues. The structure of the Group into numerous companies also reflects the strategy of product distribution and of organisation of research and development and marketing activities. In the medical sector, the strategy of integrating the companies acquired or established over the years (Deka, Asclepion, Quanta System and Asa) has followed a peculiar and original approach for our sector: each one of these companies has maintained its own specific characterisation for the elective technologies developed and range of products, with brands and distribution networks independent from the other companies of the group, constituting a real business unit with its own strategic and market positioning. Furthermore, each company has been able to take advantage of the cross fertilisation offered by each research hub, making their elective technologies available also to the other companies in the group. This strategy, though a bit complex to manage, allowed the Group to grow, making it one of the most important, well-structured entities on the market. While recognising the vital role the multi-brand and multi-R&D approach has played in the group's growth, we also see the need for increasingly close coordination among the activities of our medical sector business units. This involves promoting joint activities, particularly in distribution where circumstances permit. For example, in Italy, the "Renaissance" brand unites Deka, Quanta System and Asclepion within a single organisation, while in the DACH region Asclepion has established distribution networks also dedicated to selling Quanta System and Deka systems. Although laser technology is a common factor, as several strategical components and some R&D and production activities are shared, the two Medical and Industrial sectors target very different markets. The activities that they perform are organised so as to meet the profoundly different customer requirements of the two sectors. Furthermore, each market features specific dynamics of the demand and growth expectation linked to different key factors. The medium-term growth forecasts are positive for both sectors. The medical sector sees an ever increasing demand for aesthetic and medical treatments by a population that, on average, is getting older and which seeks to limit the effects of ageing. There is also a growing demand for technologies that can minimise operating and hospitalisation times in some surgical procedures or that can enhance their effectiveness, reducing their impact on the patient (minimal invasiveness) and overall costs. For the industrial sector, laser systems are an ever more essential tool for certain types of manufacturing, making flexible and innovative technologies available for companies competing on international markets and who want to raise their quality standards and increase productivity. Therefore, while part of the traditional manufacturing market, laser systems make up a high-tech component which, thanks to constant innovation of the laser product and of the processes which lasers allow to develop, continues to feature interesting growth prospects. Generally, considering the excellent growth outlook of the target markets on the medium and long-term, the group is able to acquire market shares and to create new application niches thanks to innovation. The breadth of our product range and our ability to continuously innovate-adapting to meet existing market needs or, better still, creating new ones-are our critical success factors. The El.En. Group was and still is able to excel in this business. The section dedicated to research and development documents and bears witness to its importance in the group's activities and to the great attention paid in allocating the appropriate resources needed to guarantee the prosperity of the group in years to come. DESCRIPTION OF THE GROUP As at 31/12/2025, the structure of the Group is as follows: ALTERNATIVE NON-GAAP MEASURES The El.En. Group uses certain alternative non-GAAP measures that are not identified as accounting measures within the IFRS, to allow for a better assessment of the performance of the Group. Therefore, the determination criterion applied by the group might not be consistent with those adopted by other groups and the result obtained might not be comparable with that determined by the latter. These alternative non-GAAP measures, determined in accordance with the Guidelines on Alternative Performance Measures issued by ESMA (ESMA/2015/1415) and adopted by CONSOB in communication no. 92543 of 3 December 2015, relate only to the performance of the accounting period covered by this document and of the comparative periods. The Group uses the following alternative non-GAAP measures to assess economic performance: the value of production : determined by the sum of revenues, the variation in finished goods, semi-finished goods, work in progress and capitalisation and other income; the gross margin : which is an indicator of the margins of sales determined by adding the entry "Other operating services and charges" to the Added Value; the added value : determined by adding the entry "Staff costs" to the EBITDA; the EBITDA : it is an operational performance indicator and is determined by adding the entry "Depreciation, amortization and other accruals" to the EBIT; the EBIT : it represents the difference between revenues and other revenues and income, production costs, other operating costs and depreciation, amortization and other accruals; the impact that the various entries of the income statement had on revenues. The Group uses the following alternative non-GAAP measures to assess its ability to meet financial obligations: - the net financial position understood as: cash and cash equivalents + securities included in current assets + current financial receivables - current financial debts and liabilities - non-current financial liabilities - other non-current payables (prepared in line with the ESMA Guidelines which, as of 5 May 2021, amended the references contained in previous CONSOB communications, including the references in Communication no. DEM/6064293 of 28-7-2006 on net financial position). PERFORMANCE INDICATORS The following performance indicators were identified to provide additional information on the group's capital, financial and income structure: 31/12/2025 31/12/2024 Profitability Ratios (*): ROE 11,8% 15,5% (Net Income / Own Shareholders' Equity) ROI 12,4% 10,6% (EBIT / Total Asset) ROS 13,2% 13,8% (EBIT / Sales) Capital structural ratios: Investments Flexibility ratio 0,81 0,64 (Current Asset / Total Asset) Indebtedness 0,32 0,45 (Total liabilities / Total asset) Leverage 1,09 1,11 ((Net Equity+ Loans) / Net Equity ) Current Ratio 3,10 2,77 (Current Asset / Current Liability) Current liability coverage ((Current receivables + Cash & cash equivalent + Investments) / Current liabilities) 2,14 1,76 Quick ratio 1,29 0,92 ((Cash & cash equivalent + Investments) / Current liabilities) For a clearer view of the table above and in the light of the provisions on alternative non-GAAP measures, we consider it appropriate to give the following definition referring to the financial statement: - Own Shareholders' Equity = Group's shareholders' equity - Net income (loss) GROUP FINANCIAL HIGHLIGHTS The Group achieved total revenues of EUR 591 million in the 2025 financial year, up 4,4% compared to 2024. The EBIT of EUR 77,8 million, or 13% of revenue, confirms the group's ability to maintain excellent operating profitability, which remains in line with the previous financial year despite the decline recorded in the industrial sector. The group's net income amounted to 43,4 million, down from 51,6 million in the previous financial year, mainly due to negative exchange rate differences as well as the impact of the sale of the controlling stake in Penta Laser Zhejiang, parent company of the laser cutting division in China. The operation contributes to the difference in net income between the 2024 and 2025 financial year, where the former benefited from extraordinary positive income components for EUR 5 million, while the items related to the result from operations held for sale and the net income from the disposal of shares entailed costs of 10,4 million in 2024 and 6,6 million in 2025 recorded in the so-called Result from discontinued operations. Furthermore, in 2025, a further loss of EUR 2,5 million was recorded for the second half of the year, when the Chinese company was consolidated using the shareholders' equity method due to the residual stake held of approximately 20%. From a revenue perspective, the fourth quarter saw a significant recovery in the industrial sector, which aligned itself with the medical sector in terms of growth compared to 2024, with annual revenue of 162 million (+4,3% over 2024) and quarterly revenue of 48 million (+15,4%), while the medical sector reached 429 million (+4,4%) on an annual basis and 121 million in the quarter (+4%). In the medical sector, operating profitability remained above expectations in the fourth quarter as well, closing the year on a high note with an EBIT of more than EUR 74 million, equal to approximately 17% of the year's revenue. The large recovery in revenue, however, did not translate into a recovery in profitability for the industrial sector: the unfavourable mix, both in terms of product type - with a predominance of sales of laser systems for cutting applications - and geographical location - with a predominance of sales in the competitive Italian market, meant that the quarterly contribution to the segment's EBIT was modest and decreased compared to the fourth quarter of 2024, resulting in an annual operating result of EUR 3,5 million, equal to 2,2% of the industrial sector's revenue. The consolidated EBIT was therefore 77,8 million, equal to 13,2% of revenue, and almost reached the 78,3 million of the previous financial year, which had been indicated as the target in the guidance. To be precise, it should be noted that the 2025 EBIT is affected by the accounting consolidation mechanism in accordance with IFRS 5, which impacts the cutting sector and therefore the industrial sector with approximately EUR 738 thousand in costs. Net of this item, the consolidated EBIT would have been 78,5 million, exceeding the result of the previous financial year. We are particularly satisfied with the results of the medical sector, a 4,3% growth achieved in unfavourable general and specific circumstances. The general ones, the tariffs imposed by the US administration and the weakening of the dollar, have created significant difficulties for our exports to our main foreign market. Those specific circumstances, the exit from the consolidation perimeter of the Japanese company Withus and the sharp reduction in sales to a long-standing customer who, following an acquisition, had entered the orbit of another manufacturer, already determined a loss of approximately 5% of the revenue in the medical sector. So the "organic" growth of the sector almost reached 10%. The basis of this success lies in the ability of the group's operating units to direct product innovation towards the most favourable positioning of our range in relation to the needs of the end markets. From this point of view, in aesthetic medical applications we have been able to increase volumes despite the decline in the main segment, hair removal, thanks to the growing success of our applications generically defined as anti-ageing. Systems based on CO 2 laser technology, microwave technology, laser systems emitting in the red spectrum, and those with ultra-short pulse emission in the nanosecond and picosecond range, have all contributed to the consolidation of the competitive position-frequently a leadership position-of our brands in aesthetic medicine: Deka, Quanta System, Asclepion and Esthelogue. In the surgical sector, however, the sale of increasing volumes of thulium and holmium laser systems for the treatment of stones (lithotripsy) and benign prostatic hyperplasia (BPH) has paved the way for the rapid expansion of our relevance in the market for sterile single-use and multi-use fibre optics, which are used for every surgical operation performed with our laser systems. Orders and sales, particularly in Italy, the Far East, and Germany, but also in the United States, have once again confirmed the group's ability to equip its sales force with innovative solutions from a technological, applicative, and functional perspective. In the industrial sector, the Cutting segment (which no longer includes the Chinese companies) recorded an acceleration in revenues in the fourth quarter, but also lower profitability. The sales mix was in fact very unfavourable, with the Brazilian market at a standstill due to problems generated by one of our suppliers, the American market sluggish in sales (but not in order acquisition), and the Italian market in the spotlight due to the number of systems delivered but unprofitable in terms of sales margins. The laser cutting segment closed the year with growth in turnover (121 million, +8,9%) but with an EBIT that was behind both 2024 and expectations. In the marking segment, Lasit closed the year with a slight increase in revenue and, above all, with growing margins thanks to the greater impact of special systems and sales through the direct channel of its European subsidiaries. Lasit's operating structure is simultaneously flexible and vertically integrated, in a balance that currently combines cost and technology control with great adaptability of the offering to customer needs. Despite recording weak results over the twelve-month period, the other activities in the industrial sector-large-surface marking by Ot-las and laser sources and special marking systems by El.En.- showed a recovery in the second half of the year, both in revenue and in order acquisition. In the medical sector, in 2025 we faced an overall favourable market situation, with the exception of the turbulence in the American market resulting more from the difficulties raised by tariffs and currency exchange rates than from actual market weakness. The persistence of the wars in Ukraine and Palestine did not constitute a significant obstacle to the development of our activities, with the obvious exception of the areas directly involved in the conflicts. The progressive reduction of interest rates, both in Italy and Europe and in the United States, has smoothed out one of the most disturbing elements in the capital goods markets: most of our customers must resort to financing to acquire our technologies, and high interest rates increase the effective cost of the purchase. In summary, over the course of the year the elements of uncertainty that characterised the economic environment gradually dissipated and we observed growing confidence among operators, which allowed for solid performance in both revenue and order intake. The conditions in the industrial sector have been decidedly more uncertain and conflicting, where manufacturing markets are going through a complex phase, particularly in Europe, due to energy transition policies that are challenging the activities of key sectors such as the automotive industry. However, such phases of change offer development opportunities to companies which, like the El.En. Group, offer innovative and alternative solutions for certain production processes: our positive results, at least in terms of revenue, are proof of our ability to identify new application niches for our technical solutions based on laser technologies. In July 2025, the disposal of the majority stake in Penta Laser Zhejiang (PLZ), the head of our Chinese laser cutting operations, was completed. From a reporting point of view, the financial statement had already been prepared in accordance with IAS/IFRS accounting standards since the 2024 financial year, reclassifying the contribution of the Chinese industrial cutting division in the assets, liabilities and income statement from discontinued operations , according to IFRS5, and the same principles have been applied during the year 2025. The impact of the Chinese companies on the group's results is very significant and negative due to the difficulties encountered by the Chinese operations during our management period, which remain unresolved under the new leadership. The result of the discontinued operations of the year is negative for 6,6 million and relates to: i) EUR 3,9 million for the negative result of the first 6 months of PLZ while the company was still part of the group (although represented in the financial statement according to IFRS 5); ii) EUR 3 million for the capital gain realised on the disposal of the equity investment, which was recalculated due to costs that the seller Ot-las has incurred or expects to incur under the conditions, terms, and guarantees provided within the framework of the agreement regarding the disposal of the equity investment; iii) EUR 1,9 million in costs for the release of the PLZ cumulative translation adjustment accumulated over the years; iv) EUR 3,8 million the settlement of a tax audit report (PVC) relating to PLZ issued by the Italian Tax Authority (Agenzia delle Entrate), the costs of which Ot-las had to bear in compliance with the contractual sale agreements. Finally, the group's share (equal to 19,79%) of the company's second-half result had a negative impact of EUR 2,5 million on the result and is represented under the item "Share of result of associated companies". In 2025, the group's activities generated significant cash flows, deriving from both current assets and extraordinary operations. The net financial position at the end of the financial year was a net cash position of EUR 172 million, an increase of EUR 62 million compared to EUR 110 million at the beginning of the year. In addition, the result of medium-term liquidity investments, recorded under fixed assets but in fact representing a temporary investment of liquidity, also increased by 3 million, reaching 10 million at the end of the financial year. As for 24,5 million, the change in the net financial position derives from the disposal of the investment in Penta Laser Zhejiang, which resulted in gross proceeds of EUR 28,6 million and the recognition of financial liabilities of EUR 4,1 million in anticipation of the outlays necessary to comply with contractual clauses. The El.En. Group is continuing the activities undertaken in the field of sustainability, which are included among the performance indicators relevant to the incentive schemes for Senior Management and certain executives. The main initiatives concerned the improvement, input, and traceability of the data required to allow an even more precise and detailed calculation of indirect emissions-an activity that represents one of the most significant efforts in the entire reporting process. Simultaneously, the strengthening of collaboration and monitoring along the supply chain continued. The Group also continued to enhance internal control over sustainability reporting, consolidating and expanding existing safeguards. It should be noted that the 2024 financial year represented the first reporting year for the El.En. Group in accordance with the provisions of It. Leg. D. of 6 September 2024, no. 125, which transposes the European Directive CSRD 2022/2464 and includes the disclosures required by Regulation (EU) 2020/852 (Taxonomy Regulation). The 2023-2027 Sustainability Plan, now in its third year of implementation, shows overall progress in line with the objectives set and, for some initiatives, slightly above the initially defined timelines. The trend in activities related to the energy transition towards renewable sources is particularly positive: the installation of new photovoltaic systems already envisaged in the Plan continues, as an integral part of the planned increase in the share of self-produced energy, along with the stipulation of additional contracts for the purchase of renewable energy. The Plan continues to focus on strategic themes such as the fight against climate change, the circular economy, the promotion of a responsible supply chain, the enhancement of human capital, and the contribution to local communities, reaffirming the El.En. Group's commitment to sustainable development in which environmental and social responsibility is fully integrated into the business model. The following table shows the breakdown of revenue as at 31 December 2025 among the group's business sectors, compared with the similar breakdown for the financial year 2024. 31/12/2025 Inc % 31/12/2024 Inc % Var % Medical 428.648 72,55% 410.401 72,53% 4,45% Industrial 162.201 27,45% 155.444 27,47% 4,35% Total revenue 590.849 100,00% 565.846 100,00% 4,42% The Group's consolidated revenue recorded a 4,4% increase for each of the two sectors, which for the first time were substantially aligned in terms of revenue growth. From the perspective of the geographical distribution of revenue, the performance of the period is shown in the following tables: 31/12/2025 Inc % 31/12/2024 Inc % Var % Italy 131.238 22,21% 107.756 19,04% 21,79% Europe 173.951 29,44% 169.062 29,88% 2,89% ROW 285.659 48,35% 289.028 51,08% -1,17% Total revenue 590.849 100,00% 565.846 100,00% 4,42% Medical sector 31/12/2025 Inc % 31/12/2024 Inc % Var % Italy 44.117 10,29% 38.661 9,42% 14,11% Europe 137.353 32,04% 128.492 31,31% 6,90% ROW 247.177 57,66% 243.249 59,27% 1,62% Total revenue 428.648 100,00% 410.401 100,00% 4,45% Industrial sector 31/12/2025 Inc % 31/12/2024 Inc % Var % Italy 87.121 53,71% 69.095 44,45% 26,09% Europe 36.598 22,56% 40.569 26,10% -9,79% ROW 38.482 23,72% 45.780 29,45% -15,94% Total revenue 162.201 100,00% 155.444 100,00% 4,35% The Italian market recorded the most significant growth, in both the medical and industrial sectors. The fact that growth in the medical sector was also achieved in Europe and the ROW, while the industrial sector, on the other hand, marked a slowdown, is indicative of the different EBIT achieved in the two sectors. These results were better in the medical sector, where the share of sales in international markets accounts for almost 90% of revenue, while in the industrial sector it does not reach 50%. International sales, particularly in the industrial laser cutting sector, offer higher margins than those seen in the Italian market. In the medical sector in Italy, the distribution networks for our products-Renaissance (specifically Deka), Quanta System, and Asclepion for the medical sector; Esthelogue for professional aesthetic; and ASA Laser for physiotherapy-have consolidated a leadership position that sees our brands as the primary reference for the sector. In the industrial sector, Italian revenue showed a significant recovery in the second half of the year, thanks to the increased confidence of manufacturing market operators, also encouraged by the return of fiscal policies to support investments (ZES, 5.0). The performance on European markets was satisfactory in the medical sector, especially thanks to the German market and the excellent sales activity carried out by Asclepion in the area. In the industrial sector, however, the performance of the sales branches is yet to consolidate; while those of Lasit (Poland, UK, France, Spain, and Germany) are already stable, having now moved past the start-up phase, the results of the Cutlite Penta branches (Spain, Germany, and Poland) were below expectations. In the industrial laser cutting sector, order intake in the US market-the most significant one-was negatively affected in the early months of the year by the perception created in the market by a potential acquisition by a Chinese entity, leading to a difficult phase that only saw a return to a healthy flow of orders at the close of the financial year. The medical sector has managed to record an increase in sales in the ROW thanks to the success of products such as Onda Pro and Red Touch Pro on the Far Eastern markets, and despite the exit of the Japanese company Withus and the loss of supplies to the important and historical customer Cynosure due to the M&A which brought her closer to a Korean producer. Net of these losses, revenue therefore increased significantly, despite the objective issues experienced in the key US market: Tariffs and a weak dollar penalised us, but the excellent results achieved in 2025 in the USA show how the quality and innovation of the range of products offered allow us to maintain competitive positions even in less favourable economic phases. Within the medical and aesthetic systems segment , which also accounted for about 72,5% of the group's revenues in the year 2025, the sales trend in the various segments is outlined in the following table: 31/12/2025 Inc % 31/12/2024 Inc % Var % Aesthetic 245.302 57,23% 235.486 57,38% 4,17% Surgery 82.659 19,28% 77.384 18,86% 6,82% Physiotherapy 16.892 3,94% 16.158 3,94% 4,55% Others 2.740 0,64% 1.803 0,44% 51,98% Total medical systems 347.594 81,09% 330.831 80,61% 5,07% Medical service 81.053 18,91% 79.570 19,39% 1,86% Total medical revenue 428.648 100,00% 410.401 100,00% 4,45% There are exclusively positive signs regarding revenue variation across the various segments in which we present our sales. The aesthetic segment performed well with the progressive consolidation of sales of laser systems for rejuvenation (anti-ageing) performed with CO 2 mini-ablative technology, and other anti-ageing systems for the body and face, such as Onda Pro and Red Touch Pro by Deka: sales in the aesthetic sector recorded an increase of more than 4% despite the decline in the hair removal segment, the most important in terms of turnover, made more marked this year by the interruption of supplies to the important customer Cynosure for reasons beyond our scope of operations. The excellent performance in the surgical systems segment continues, alongside a recovery in physiotherapy systems, both of which recorded excellent growth. For the residual "others" sector, the marked increase is essentially due to the recovery in the dental sector on the US market. Medical service revenue includes revenues from services and goods sold at a later stage than the sale of the systems. The contribution to this revenues item from sales of sterile fibre optics used in urological surgery remains decisive and growing, with sales exceeding 50% of segment revenues during the period. The exit of the Japanese company Withus from the scope of consolidation resulted in an inorganic turnover loss for the service segment exceeding 8% of revenue. Organic growth in the segment was therefore approximately 10%. It should be noted that Quanta System is commencing the construction of a new and larger clean room at its Samarate plant dedicated to the production of sterile fibre optics, in order to increase the production capacity of this medical device. For the sector of industrial applications , the following table details the revenue according to the market segments the Group is active in. 31/12/2025 Inc % 31/12/2024 Inc % Var % Cutting 110.012 67,82% 104.493 67,22% 5,28% Marking 28.103 17,33% 28.838 18,55% -2,55% Laser sources 3.289 2,03% 4.291 2,76% -23,35% Conservation 747 0,46% 865 0,56% -13,62% Total industrial systems 142.151 87,64% 138.487 89,09% 2,65% Industrial service 20.050 12,36% 16.957 10,91% 18,24% Total Industrial revenue 162.201 100,00% 155.444 100,00% 4,35% Revenue in the industrial sector in 2025 showed growth of 4,3%, driven by the laser cutting segment and after-sales service, while revenues for marking and restoration systems and medium-power CO 2 laser sources showed a decline during the period. In the cutting segment, the most important for the group even after the sale of the Chinese operations, the record revenue result in the fourth quarter allows us to close the year with growth of more than 5%. The marking segment shows a slight decline in the year, while the decline recorded in the sale of medium-power laser sources is more accentuated. The trend in service sales has returned to growth, as expected given the progressive increase in the installed base of systems that require technical assistance and consumables for their normal utilization. We are pleased with the performance of the restoration segment, which also generates revenues, recorded in the service segment, from the rental of equipment dedicated to the conservation of artistic artefacts. We are especially proud of the extraordinary successes achieved in numerous artistic heritage conservation and recovery operations, made possible by the unique and effective technologies the group has developed for this purpose. As usual, we are announcing significant restoration work carried out using our laser equipment, dedicated to the conservation of artistic heritage. A niche activity that is the flagship of the Group, which has always been committed to making its innovative technologies available for the most complex restoration projects. The restoration of the Column of Marcus Aurelius (Colonna Aureliana) is currently underway; since the second century AD, it has dominated the Via Flaminia (now Via del Corso) and Piazza di Monte Citorio in Rome. The bas-reliefs depict battle scenes, sieges, and military marches and are currently being cleaned using our laser systems, which allow for the selective removal of all encrustations while keeping the patina of the work intact. The restoration work is expected to be completed by 2026. CONSOLIDATED INCOME STATEMENT AS OF 31 DECEMBER 2025 We present below the consolidated income statement for the year ended 31 December 2025, compared to that of the year 2024. Income Statement 31/12/2025 Inc % 31/12/2024 Inc % Var % Revenue 590.849 100,0% 565.846 100,0% 4,42% Change in inventory of finished goods and WIP (4.470) -0,8% 4.085 0,7% Other revenues and income 6.057 1,0% 6.833 1,2% -11,35% Value of production 592.436 100,3% 576.763 101,9% 2,72% Purchase of raw materials 268.297 45,4% 267.172 47,2% 0,42% Change in inventory of raw material 8.581 1.5% 10.284 1.8% -16,56% Other direct services 55.800 9,4% 53.669 9,5% 3,97% Gross margin 259.758 44,0% 245.637 43,4% 5,75% Other operating services and charges 59.879 10,1% 55.092 9,7% 8,69% Added value 199.879 33,8% 190.545 33,7% 4,90% Staff cost 107.047 18,1% 98.770 17,5% 8,38% EBITDA 92.831 15,7% 91.775 16,2% 1,15% Depreciation, amortization and other accruals 15.035 2,5% 13.467 2,4% 11,65% EBIT 77.796 13,2% 78.309 13,8% -0,65% Net financial income (charges) (813) -0,1% 802 0,1% Share of profit of associated companies (2.673) -0,5% 23 0,0% Other net income and charges (56) 0,0% 4.971 0,9% Income (loss) before taxes 74.255 12,6% 84.104 14,9% -11,71% Income taxes 23.497 4,0% 21.227 3,8% 10,69% Income (loss) from Continuing operations 50.757 8,6% 62.877 11,1% -19,28% Income (loss) from Discontinued operation (6.573) -1,1% (10.372) -1,8% -36,63% Income (loss) for the financial period 44.185 7,5% 52.505 9,3% -15,85% Income (loss) of minority interest 770 0,1% 892 0,2% -13,69% Net income (loss) 43.415 7,3% 51.613 9,1% -15,88% The margin was EUR 259.758 thousand, up 5,7% from EUR 245.637 thousand as at 31 December 2024, with the margin increasing from 43,4% in 2024 to 44,0% in 2025. The sales mix was favourable in the medical sector, which recorded an improvement in its contribution margin, while in the industrial sector the prevalence of sales in the Italian market led to a narrowing of the margin. The net effect remains positive, with the improvement in the medical sector outweighing the decline in the industrial sector, resulting in a slight improvement in margins at a consolidated level, from 43,6% to 44,0%. The improvement recorded in margins is even more significant considering the presence in 2024 of other income due to insurance refunds and government reimbursements received for damages suffered during the flood of November 2023 in Campi Bisenzio, amounting to approximately EUR 1,9 million, while in 2025, margins were also supported by income of approximately EUR 1,4 million from a grant received by the German company Asclepion. Other operating services and charges amounted to EUR 59.879 thousand, an increase compared to the EUR 55.092 thousand as at 31 December 2024, with the incidence on revenue increasing from 9,7% to 10,1%. Among the cost items driving the increase in the period, in addition to promotional and commercial expenses (where international trade fairs and congresses represent a significant chapter), we highlight the group's commitment to the adoption and implementation of information systems designed for more streamlined, proactive, and modern management of production, reporting, and sales activities, as well as being equipped with the necessary redundancies and protection tools to minimise the risk of interruptions. Staff costs, amounting to EUR 107.047 thousand, increased by 8,4% compared to the EUR 98.770 thousand as at 31 December 2024, with the incidence on revenue rising (17,5% as at 31 December 2024, 18,1% as at 31 December 2025). The notional costs for stock options/stock based compensation in favour of employees amounted to EUR 1.719 thousand in the period, compared to 2.111 thousand as at 31 December 2024. As at 31 December 2025, the group had 1.412 employees, down from 2.080 as at 31 December 2024, due to the sale of the majority stake in Penta Laser Zhejiang. A considerable amount of staff costs is absorbed by research and development, for which the Group also receives funds and reimbursements of expenses in view of specific contracts signed with the appropriate bodies. The EBITDA amounted to EUR 92.831 thousand, an increase compared to the EUR 91.775 thousand as at 31 December 2024, despite a decrease in its incidence on revenue (16,2% in 2024, 15,7% in 2025). Depreciation, amortisation, and provisions recorded an increase from EUR 13.467 thousand as at 31 December 2024 to EUR 15.035 thousand as at 31 December 2025, thus raising their incidence on revenue from 2,4% to 2,5%. This variation is determined, net of lower accrual for bad debts, by the effect of higher depreciation on investments made and accrual for risks, also in light of the release of a risk fund of approximately EUR 1,6 million which had benefited the 2024 financial year following the settlement of certain disputes resolved more favourably than expected. The EBIT therefore showed a positive result of EUR 77.796 thousand, a slight decrease compared to the EUR 78.309 thousand as at 31 December 2024, and the incidence on revenue decreased from 13,8% to 13,2%. It should be noted that this EBIT is affected by costs of EUR 738 thousand relating to the consolidation mechanics of the discontinued operations sold in 2025, a negative impact deriving from the consolidation under IFRS 5 of the divested equity investment in Penta Laser Zhejiang. Financial charges amounted to EUR 813 thousand compared to the profit of EUR 802 thousand recorded in the same period of the previous financial year. Specifically, the financial income generated from liquidity was approximately EUR 3,9 million (2,8 million in 2024), while interest expense on the payable amount to approximately EUR 1,6 million (2,2 million in 2024). Exchange rate differences showed a significantly negative result, equal to EUR 2,1 million, mainly due to the exchange rate of the US dollar and of the Chinese RMB. Further negative exchange rate differences of EUR 985 thousand were recorded following the release of the Cumulative translation adjustment resulting from the sale of the majority stake in the Japanese subsidiary Withus. This release reflects the amount of exchange rate differences accumulated over the years in a specific shareholders' equity reserve and is particularly negative due to the recent performance of the Japanese yen. Income from equity investments valued at shareholders' equity includes the relevant share of equity investments in associated companies. In 2025, Elesta achieved an excellent result, contributing positively by EUR 259 thousand, while the negative result of this item stems mostly from the share of the negative result of the Chinese company Penta Laser Zhejiang (-2,5 million) and the Japanese company Withus (EUR -0,4 million), companies in which a majority stake was sold during the 2025 financial year. The income (loss) before taxes features a positive result of EUR 74.255 thousand, lower than the EUR 84.104 thousand of 31 December 2024. The 2024 financial year benefited from a net income of EUR 5 million following the "remeasurement" of a financial liability that arose from the purchase in 2020 of certain shares of the Chinese company Penta Laser Zhejiang. The cost of current and deferred taxes for the financial year is equal to EUR 23.497 thousand: the overall tax rate is 32%, up from 25% last year. The 2024 income tax benefited from the agreement signed by El.En. S.p.A. with the Revenue Agency in December 2024 on the tax credit on patents (Patent Box) for the period 2020/2024 and the non-taxability of the 5 million income described in the previous note. The result from discontinued operations relating to the sale of the majority stake in the Chinese company Penta Laser Zhejiang is negative by approximately EUR 6,6 million. The item includes four main components: the contribution of the result for the first six months of Penta Laser Zhejiang, equal to a loss of approximately 3,9 million; the consolidated capital gain on the disposal of the equity investment, which following adjustments for expenses incurred and expected for the conclusion of the contract amounted to 3 million; financial components relating to the release of the cumulative translation adjustment, which involved a cost of EUR 1,9 million; EUR 3,8 million for the settlement of a tax audit report (PVC) relating to Penta Laser Zhejiang issued by the Inland Revenue, the costs of which Ot-las had to bear in accordance with the contractual sale agreements. The Group ended the financial year 2025 with a net income of EUR 43,4 million, compared to EUR 51,6 million last year. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AND NET FINANCIAL POSITION AS ΑΤ 31 DECEMBER 2025 The reclassified statement of financial position below shows a comparative assessment with that of the previous financial year. Statement of financial position 31/12/2025 31/12/2024 Variation Intangible assets 4.613 4.692 (79) Tangible assets 83.904 77.623 6.281 Equity investments 7.120 2.011 5.109 Deferred tax assets 11.670 11.299 371 Other non-current assets 11.459 7.612 3.847 Total non current assets 118.766 103.237 15.529 Inventories 157.264 172.394 (15.130) Accounts receivable 117.341 117.982 (641) Income tax receivables 2.444 3.554 (1.110) Other receivables 20.627 21.668 (1.041) Financial instruments 37.080 10.017 27.063 Cash and cash equivalents 174.360 147.470 26.890 Total current assets 509.116 473.085 36.030 Assets held for sale - 164.399 (164.399) Total Assets 627.881 740.721 (112.840) Share capital 2.612 2.604 9 Additional paid in capital 48.649 47.822 827 Treasury stock (2.450) (79) (2.371) Other reserves 141.426 123.625 17.801 Retained earnings / (accumulated deficit) 178.498 159.435 19.064 Net income / (loss) 43.415 51.613 (8.198) Group shareholders' equity 412.151 385.021 27.130 Minority interest 15.323 25.782 (10.458) Total shareholders' equity 427.474 410.802 16.672 Severance indemnity 5.248 4.981 266 Deferred tax liabilities 2.935 2.973 (38) Reserve for risks and charges 8.725 8.117 608 Financial debts and liabilities 17.304 23.498 (6.193) Other non current liabilities 1.803 1.186 617 Total non current liabilities 36.015 40.755 (4.740) Financial liabilities 20.766 23.246 (2.481) Accounts payable 90.019 90.550 (532) Income tax payables 4.896 3.667 1.230 Other current payables 48.712 53.227 (4.515) Total current liabilities 164.393 170.690 (6.298) Liabilities directly associated with the assets held for sale - 118.474 (118.474) Total Liabilities and Shareholders' equity 627.881 740.721 (112.840) In accordance with the requirements of the CONSOB communication of 28 July 2006 and in compliance with the CESR Recommendation of 10 February 2005 "Recommendations for the consistent implementation of the European Commission's Regulation on Information Prospectuses", as updated by the Guidelines on Disclosure Requirements under the Prospectus Regulation 1 (ESMA/ 31-62-1426), we set forth below the details of the El.En. Group's net financial position as at 31 December 2025: A B C D E F G H I J K L M Net financial position 31/12/2025 31/12/2024 Cash and cash equivalents 174.360 147.470 Cash equivalents Other current financial assets 37.725 11.020 Liquidity (A + B + C) 212.085 158.490 Current financial debt (15.370) (19.858) Current portion of non-current financial debt (5.395) (3.389) Current financial indebtedness (E + F) (20.766) (23.246) Net current financial position (D + G) 191.320 135.244 Non-current financial debt (4.106) (13.500) Debt instruments (13.199) (9.998) Non-current trade and other payables (1.803) (1.186) Non-current financial indebtedness (I + J + K) (19.107) (24.684) Net Financial Position (H + L) 172.212 110.559 The net financial position increased by approximately EUR 61,7 million during the year, from EUR 110,6 million as at 31 December 2024, to approximately EUR 172,2 million at the end of 2025. Both operating and extraordinary management contributed to the significant cash generation. The disposal of the majority stake in Penta Laser Zhejiang was completed in July, with a consideration of approximately EUR 28,6 million and setting aside approximately EUR 4,1 million in financial liabilities to cover the outlays required to comply with the contractual clauses. Regarding current items, as shown in the following chart, the decrease in net working capital was added to the sources of cash in 2025, indicating, among other things, a normalised management of procurement following the shock resulting from the post-Covid supply chain crunch. Net of dividends of approximately 18,7 million and fixed capital investments of 19 million, the variation in cash from operating activities therefore amounted to approximately 37 million. 200.000 180.000 160.000 140.000 120.000 100.000 80.000 60.000 + - * Nopat =Ebit-Income tax **D&A= Depreciation, Accruals and Deval ***NWC= Net Working Capital It should also be noted that the result as at 31 December 2025 of the fair value of liquidity invested in insurance-type financial instruments that, due to their nature, require recognition as non-current financial assets, amounted to EUR 10,8 million, and that net investments for EUR 3 million were made during the financial year. Being medium-term liquidity investments, these amounts do not form part of the net financial position. Their positive variation can therefore be included in the cash generation from current assets. RECONCILIATION CHART COMPARING THE CONSOLIDATED FINANCIAL STATEMENT WITH THE FINANCIAL STATEMENT OF THE PARENT COMPANY 31/12/2025 31/12/2025 31/12/2024 31/12/2024 Capital and reserves Income statement Capital and reserves Income statement Balance per parent company statement 224.167 32.846 208.273 33.988 Elimination of investments in consolidated companies: - share of profit (loss) of subsidiary companies 245.487 16.670 276.217 38.531 - share of profit (loss) of associated companies (3.154) (2.673) (549) 23 - elimination of value rectification on equity investments 7.241 1.139 6.100 235 - elimination of dividends 0 (16.981) 0 (14.343) - other (charges) income 965 12.665 1.071 (6.597) Total contribution of consolidated companies 250.540 10.820 282.839 17.849 Elimination of equity invest. in subsidiaries, goodwill registration (58.121) (31) (101.338) (31) Elimination of intercompany profits on inventory (4.182) (112) (4.608) (192) Elimination of intercompany profits from sale of fixed assets (253) (108) (145) (1) Balance as per consolidated statement - Group quota 412.151 43.415 385.021 51.613 Balance as per consolidated statement - Third party quota 15.323 770 25.782 892 Balance as per consolidated statement 427.474 44.185 410.802 52.505 RESULTS OF THE PARENT COMPANY EL.EN. S.p.A. Financial highlights The parent company El.En. S.p.A. develops, designs, manufactures and sells laser sources and systems for sale and use in two main markets: the medical/aesthetic market and the industrial market. it also provides a series of after-sales services, providing customers with technical assistance, spare parts, and consultancy. El.En. S.p.A. has pursued an expansion strategy over the years by establishing or acquiring numerous companies that have become its business partners in specific product or geographic markets. The activities of the group companies are coordinated through the definition of supply relationships, the selection and control of management, partnerships in research and development and the financing of both capital and onerous loans or through the extension of supply credit. Co-ordination activities are very important, also due to the fact that the majority of El.En.'s revenue is intended to serve the subsidiaries. This entails the commitment of important managerial and financial resources, with a significant investment of resources in the group companies to support the development of their activities and that of the parent company itself. The activities of El.En. S.p.A., as in previous financial years, were carried out at the Calenzano (FI) headquarters and the local unit in Castellammare di Stabia (NA). The following table shows the sales performance of the company's operating sectors described, presented in comparative form with the previous financial year. 31/12/2025 Inc % 31/12/2024 Inc % Var % Medical 141.813 91,53% 133.322 90,02% 6,37% Industrial 13.124 8,47% 14.783 9,98% -11,23% Total revenue 154.937 100,00% 148.105 100,00% 4,61% The company recorded revenue of EUR 154,9 million, a 4,6% increase compared to 2024. Despite the sharp reduction in revenue from its long-standing client Cynosure and the decline in revenues in the industrial sector, El.En. S.p.A. recorded an increase in revenue in 2025 that brought it closer to the record result of 2022. While the medical sector performed very well (+6%), the weakness of the Italian market for machinery designed for manufacturing meant that revenues in the sector fell again in 2025. The forecast for 2026 is for further revenue growth, with both the industrial and medical sectors expected to make a positive contribution to this growth. I ncome statement as at 31 December 2025 Income Statement 31/12/2025 Inc % 31/12/2024 Inc % Var % Revenue 154.937 100,0% 148.105 100,0% 4,61% Change in inventory of finished goods and WIP (968) -0,6% 1.438 1,0% Other revenues and income 1.370 0,9% 1.251 0.8% 9,51% Value of production 155.339 100,3% 150.793 101,8% 3,01% Purchase of raw materials 66.809 43,1% 69.456 46,9% -3,81% Change in inventory of raw material 420 0.3% (1.515) -1,0% Other direct services 22.018 14,2% 22.787 15,4% -3,38% Gross margin 66.093 42,7% 60.065 40,6% 10,03% Other operating services and charges 10.632 6,9% 9.562 6,5% 11,19% Added value 55.461 35,8% 50.504 34,1% 9,82% Staff cost 29.052 18,8% 26.875 18,1% 8,10% EBITDA 26.409 17,0% 23.628 16,0% 11,77% Depreciation, amortization and other accruals 3.429 2,2% 3.003 2,0% 14,16% EBIT 22.980 14,8% 20.625 13,9% 11,42% Net financial income (charges) 18.137 11,7% 17.115 11,6% 5,97% Other net income and charges (1.139) -0,7% (70) 0,0% 1528,66% Income (loss) before taxes 39.979 25,8% 37.670 25,4% 6,13% Income taxes 7.133 4,6% 3.682 2,5% 93,75% Income (loss) for the financial period 32.846 21,2% 33.988 22,9% -3,36% The gross margin was EUR 66.093 thousand, up from EUR 60.065 thousand last year due to the increase in revenues. The percentage incidence of the margin on revenue is also up from 40,6% in 2024 to 42,7% in 2025. Other operating services and charges amounted to EUR 10.632 thousand, up from EUR 9.562 thousand in the previous financial year, and with the incidence on revenue rising from 6,5% in 31 December 2024 to 6,9% in 2025. The increase is mainly due to higher costs for trade shows and the costs incurred for new IT tools. Staff costs amounted to EUR 29.052 thousand, up 8,1% from EUR 26.875 thousand in the previous year, and with an incidence on revenue rising from 18,1% in 2024 to 18,8% in 2025. The increase is also due to the increase in the workforce from 353 as at 31 December 2024 to 363 as at 31 December 2025. A portion of staff expenses flows into research and development, for which El.En. S.p.A. generally receives contributions and expense reimbursements under specific contracts signed with the relevant bodies. During the 2025 financial year, contributions amounting to EUR 376 thousand were received. As a result of the foregoing, EBITDA amounted to EUR 26.409 thousand, as against EUR 23.628 thousand in the previous year, with an impact on revenue going from 16% as at 31 December 2024 to 17% in the current year. Depreciation, amortisation and provisions amounted to EUR 3.429 thousand, up from EUR 3.003 thousand as at 31 December 2024, mainly due to an increase in the provision for warranty reserve and doubtful receivables. The EBIT increased from EUR 20.625 thousand as at 31 December 2024 to EUR 22.980 thousand in the financial year 2025. The financial management showed a positive result of EUR 18.137 thousand, up from EUR 17.115 thousand for the year ended 31 December 2024, mainly due to the higher amount of dividends received from investee companies, and despite a net result from exchange rate differences that significantly worsened compared to the 2024 financial year. The amount of the item "other net income and expenses" refers mainly to the write-down of the equity investment in the subsidiary BRCT Inc. The profit/loss before taxes was EUR 39.979 thousand, compared to EUR 37.670 thousand in the previous year. The company closed the year 2025 with a profit of EUR 32.846 thousand compared to EUR 33.988 thousand in the previous year. Statement of Financial Position and Net financial position as at 31 December 2025 Statement of financial position 31/12/2025 31/12/2024 Variation Intangible assets 599 582 18 Tangible assets 21.508 19.643 1.865 Equity investments 23.706 24.067 (361) Deferred tax assets 2.862 2.547 316 Other non-current assets 31.192 49.891 (18.699) Total non current assets 79.868 96.729 (16.861) Inventories 47.307 49.041 (1.734) Accounts receivable 48.089 44.279 3.810 Income tax receivables - 2.718 (2.718) Other receivables 6.531 8.349 (1.818) Financial instruments 16.724 5.531 11.193 Cash and cash equivalents 66.411 43.694 22.717 Total current assets 185.062 153.611 31.451 Assets held for sale - 1.167 (1.167) Total Assets 264.930 251.507 13.423 Share capital 2.612 2.604 9 Additional paid in capital 48.649 47.822 827 Treasury stock (2.450) (79) (2.371) Other reserves 143.476 124.918 18.557 Retained earnings / (accumulated deficit) (966) (981) 15 Net income / (loss) 32.846 33.988 (1.142) Total shareholders' equity 224.167 208.273 15.894 Severance indemnity 595 609 (13) Deferred tax liabilities 491 508 (17) Reserve for risks and charges 1.031 916 115 Financial debts and liabilities 408 326 82 Other non current liabilities 827 339 488 Total non current liabilities 3.352 2.698 655 Financial liabilities 255 208 48 Accounts payable 24.046 28.287 (4.241) Income tax payables 3.874 - 3.874 Other current payables 9.235 12.042 (2.807) Total current liabilities 37.411 40.537 (3.126) Liabilities directly associated with the assets held for sale - - - Total Liabilities and Shareholders' equity 264.930 251.507 13.423 The net book value of the Torre Annunziata property was recorded under assets held for sale in 2024; its sale to the subsidiary Lasit took place in the early months of 2025.

View stock analysis, news, and events for El.en. S.p.a.