EL En S p A : The Board of Directors of El.En. Spa approves the 2025 draft financial statements

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

1.1 3.1 REGEM The Board of Directors of El.En. Spa approves the 2025 draft financial statements Consolidated Revenue grows: €591 million of euro Group Net Profit: 43,4 million of euro Group NFP: Cash positive per 172,2 million of euro Proposed dividend: 0,25 euro per share Guidance 2026: revenue and operating profit forecasts to grow Consolidated revenue was 591 million of euro up 4,4% on the 565,8 million of euro of 2024 EBITDA was 92,8 million of euro up on the 91,8 million of euro of 2024 EBIT was 77,8 million of euro in line with 78,3 million of euro of 2024 Consolidated Net Profit was 43,4 million of euro, down 15,9% on the 51,6 million of euro of 2024 Net Financial Position was cash positive for 172,2 million of euro, up on the 110,6 million of euro at the end of 2024 Parent company revenue was approximately 155 million of euro up on the 148 million of euro of 2024 (+4,6%) Proposed distribution of a dividend of 0,25 euro per share Approved authorization to purchase and dispose of treasury stock 2026-2031 stock option plan Firenze, March 13, 2026 - The Board of Directors of El.En. S.p.A., a leader in the laser market and listed on the Euronext STAR Milan ("STAR") of the Italian Stock Exchange, today approved the consolidated financial report as of December 31, 2025, the separate financial statement project as of December 31, 2025, and the sustainability reporting as of December 31, 2025, to be submitted to the shareholders' meeting. As already occurred for the 2024 financial statements, the results of the first six months of the Chinese industrial cutting division - consisting of Penta Laser Zhejiang and its subsidiaries, up to the date of sale - have also been classified as discontinued operations in accordance with IFRS 5 in the reclassified consolidated income statement as of December 31, 2025. This presentation reflects the fact that the transaction had already been classified as held for sale in 2024 and that the sale was completed in July 2025. The 2025 financial year closed with consolidated revenue of 591 million of euro , up 4,4% compared to 2024, and an EBIT 77,8 million of euro , in line with the 78,3 million of the previous year and representing 13,2% of revenue. The Group's net profit amounted to 43,4 million of euro , a decrease of approximately 15,9% compared to the 51,6 million of the previous year. The fourth quarter results confirmed the steady growth trend seen throughout the year, both in revenue and operating profit. In the fourth quarter of 2025, consolidated revenue amounted to 168,9 million of euro (up 5,8%) with an EBIT of 22,8 million (up 6,3%). From a revenue perspective, the fourth quarter of 2025 saw a significant recovery in the industrial sector, which aligned itself with the medical sector in terms of growth compared to 2024, with an annual turnover of 162 million of euro ( up 4,3%) and a quarterly turnover of 48 million of euro (up 10.6%) , while the medical sector reached 429 million of euro (up 4,4%) on an annual basis and 121 million of euro in the quarter (up 4,1%) . Gabriele Clementi, President of El.En. S.p.A. said: " We are particularly pleased with the results achieved, despite a less than favorable overall environment. The tariffs introduced by the US administration and the weakening of the US dollar impacted our exports to our main foreign market, while the exit from the consolidation scope of the Japanese subsidiary Withus resulted in a reduction of approximately 5% in revenue from the medical sector. Excluding these factors, organic growth in the medical sector approached 10%, while the industrial sector recorded a revenue increase of more than 4%. These results confirm the Group's ability to orient product innovation towards the needs of its target markets. The positive trend in both orders intake and sales-particularly in Italy, Asia, and Germany, but also in the United States despite the current context-confirms the validity of our strategy and the Group's ability to offer technologically and functionally innovative solutions." The financial year closed with confirmation of the trends that had emerged throughout the year. The Italian market recorded the most significant growth, with increases of 14,1% for the medical sector and 26% for the industrial sector , respectively. In the medical sector, growth was also positive in Europe and the rest of the world, while the industrial sector saw a contraction in foreign markets: the different geographical mix of sales is one of the factors determining the different profitability of the two sectors. Revenue growth in the medical sector, which reached 4,4% year-on-year, was driven primarily by surgical systems and DEKA-branded systems. This represents a significant result, achieved in a challenging environment characterized by unfavorable circumstances in key markets, such as the US. Reflecting the vitality of the product offering across the entire range, system sales in the medical sector increased in all three main segments: aesthetics, surgery with the Quanta System and Asclepion, and ASA Laser therapy. Product innovation remains a strategic pillar of the Group, underpinning its sales and marketing strategy. Expansion of the product range and ongoing innovation represent the primary lever for sustaining the Group's growth in revenues. The industrial sector recorded total revenues of 162,2 million of euro , up 4,3%, driven by cutting and after-sales service, with growth of approximately 26% in Italy, compared to a decline in European markets and the rest of the world. Throughout 2025, the El.En. Group continued to strengthen its sustainability efforts, extending the ESG indicators already included in its top management incentive systems to management and improving the quality and traceability of data required to calculate indirect emissions. Monitoring activities along the supply chain were also intensified, and internal control measures for sustainability reporting were consolidated, in accordance with the provisions of Legislative Decree 125/2024, which implements the CSRD Directive. The 2023-2027 Sustainability Plan is progressing in line with its objectives, with some initiatives completed ahead of schedule. In particular, the energy transition continues to achieve positive results, thanks to the construction of new photovoltaic systems and the signing of additional renewable energy supply contracts. The Plan confirms the focus on the Group's strategic issues: the fight against climate change, the circular economy, a responsible supply chain, empowering people and supporting communities, reaffirming commitment to a sustainable growth model in which environmental and social responsibility are fully integrated into our business model. At the end of the 2025 financial year, the net financial position was cash positive for 172,2 million , a significant increase thanks to excellent cash generation and a testament to the industrial group's consistent financial strength. Furthermore, additional liquid assets of approximately 11 million are held, classified by their nature as financial fixed assets. Analysis of the Group's financial performance Gross margin was 259,8 million, up 5,7% from 245,7 million on December 31, 2024, with margins increasing from 43,4% in 2024 to 44,0% in 2025. The product mix was favorable in the medical sector, which saw an improvement in gross margin on sales, while in the industrial sector, the prevalence of sales on the Italian market resulted in a reduction in overall margins on sales. The net effect remained positive. EBITDA was 92,8 million of euro , up on the 91,8 million of euro of 2024, notwithstanding a slight reduction in EBITDA margin (16,2% in 2024, 15,7% in 2025). EBIT recorded a positive balance of 77,8 million of euro , slightly down from 78,3 million of 31 December 2024 due to more significant provisions for risks and charges compared to the previous year, with the EBIT margin decreasing from 13,8% to 13,2%. Financial management recorded a loss of 813 thousand euro compared to a profit of 802 thousand euro in the previous year. Specifically, financial income generated from the investment of liquidity amounted to approximately 3,9 million of euro (2,8 million in 2024), while interest expense on debt amounted to approximately 1,6 million (2,2 million in 2024). Foreign exchange rate differences showed a significant overall negative balance of 3,1 million of euro, primarily due to the exchange rate of the US dollar and the Chinese yuan. Additional exchange rate losses of 985 thousand euro were recorded following the release of the currency translation reserve 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 with respect to the subsidiary's net equity and is particularly negative due to the recent performance of the Japanese yen. Pre-tax income was positive for 74,3 million of euro, down from 84,1 million on December 31, 2024. It should be noted that the 2024 financial year benefited from a net income of 5 million of euro resulting from the remeasurement of a financial liability related to the purchase, in 2020, of shares in the Chinese company Penta Laser Zhejiang. Penta Laser's share of the result, which was significantly negative in 2025, also contributed to the decrease in pre-tax profit in 2025. The net result from discontinued operations , attributable to the Chinese company Penta Laser Zhejiang and its subsidiaries in China, was negative by approximately 6,6 million of euro and is composed of four main items: the contribution to the consolidated income of Penta Laser Zhejiang's first six-month results, equal to a loss of approximately 3,9 million of euro; the consolidated capital gain on the sale of the stake, equal to 3,0 million of euro, net of adjustments for costs incurred and expected for the conclusion of the contract; the financial components related to the release of the currency translation reserve, which resulted in a cost of 1,9 million of euro; and a charge of 3,8 million following the definition of a PVC relating to PLZ raised in 2025 by the Italian Revenue Agency, the costs of which were borne by Ot-las in accordance with the contractual agreements underlying the sale. The Group closed the 2025 financial year with a net profit of 43,4 million of euro , down from 51,6 million euros last year. The cash positive net financial position increased by approximately 61,7 million of euro during the year, from 110,6 million on December 31, 2024, to 172,2 million at the end of 2025. The contribution to cash flow generation came from both operating and extraordinary activities. In July, the sale of the majority stake in Penta Laser Zhejiang was finalized, resulting in the receipt of gross proceeds of approximately 28,6 million of euro. Furthermore, financial debt of 4,1 million was recognized in anticipation of any disbursements necessary to comply with contractual clauses for guarantees and price adjustments. As usual, we announce significant restoration work carried out using our laser equipment dedicated to the conservation of artistic heritage. This niche activity is the pride of the Group, which has always been committed to providing its innovative technologies for the most complex restoration projects. The restoration of the Aurelian Column, which dominated the Via Flaminia (now Via del Corso) and the Piazza di Monte Citorio in Rome since the second century AD, is underway. The bas-reliefs depict scenes of battle, sieges, and military marches and are currently being cleaned with our laser systems, which allow for the selective removal of all encrustations, preserving the work's patina intact. The restoration work is expected to be completed by 2026. 2025 Financial performance of the parent company El.En. S.p.A. The Company registered Revenues for 155 million of euro , up 4,6% on the 148,1 million of revenues recorded in 2024. EBITDA stood at 26,4 million of euro , an 11,8% increase compared to 23,6 million in the previous year, with the EBITDA margin rising from 16% at December 31, 2024, to 17% for the current year. Pre-tax profit amounted to approximately 40 million of euro , an increase of 6,1% compared to 37,7 million in the previous year. El.En. S.p.A. closed the financial year with a net profit of approximately 32,8 million of euro , compared to 34 million in 2024, a decrease of 3,4%, and a margin on revenues of approximately 21,2% compared to 23,0% in 2024. El.En. S.p.A.'s Net Financial Position , as of December 31, 2025, is cash positive for 82.1 million euros, a significant improvement compared to the 49 million euros of December 31, 2024. * * * * * * * * * The manager in charge of preparing the company's accounting documents, Dr. Enrico Romagnoli declares, pursuant to paragraph 2 of article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documentary findings, books and accounting records. * * * * * * * * * SIGNIFICANT EVENTS OCCURRED DURING THE FINANCIAL YEAR At the end of February 2025, the group sold an approximately 46% stake in its Japanese subsidiary Withus, thereby transferring control to the minority shareholders who had founded the company with El.En. in 2007. Direct distribution in Japan of professional beauty systems manufactured in Italy had been interrupted for several years, and the company now primarily provides service to its installed base and sells locally sourced beauty products. Due to the group's remaining 33% stake, the investment will be consolidated in the group's financial statements using the equity method starting in March 2025. On July 15, 2025, with the buyer's payment of the agreed-upon price, the process that led to the definitive effectiveness of the agreement for the sale of 59,18% of Penta Laser Zhejiang Co., Ltd. (hereinafter "PLZ"), parent company of the Chinese laser cutting business unit, to Yangtze Optical Fibre and Cable Joint Stock Limited Company (a limited liability company incorporated in the People's Republic of China, hereinafter "YOFC"), was concluded. Headquartered in Wuhan and listed on the Shanghai and Hong Kong stock exchanges, YOFC specializes in the production of optical fibers for telecommunications. Benefiting from its technological and manufacturing background, it recently entered the power laser source business through its subsidiary Everfoton, also based in Wuhan. YOFC was established as a Philips initiative, subsequently acquired by Prysmian.

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