Eurotech S.p.a.MIL: ETH

Consolidated Interim Financial Report at 30 June 2025

Sep 12, 2025 at 6:03 PM UTC · Issued by Eurotech S.p.a.

consolidated interim

financial report

at go Yune zoxg

This document has been translated into English for the convenience of readers outside Italy.

The original Italian document should be considered the authoritative version.

Date of issue: 11 September 2025 This report is available online

in the "Investors" section of the website

https://www.eurotech.com

EUROTECH S.p.A.

Registered offices: Via Fratelli Solari 3/A, Amaro (Udine), Italy Share capital: €9,657,277.25 fully paid in

Tax code and

Udine Company Register no.: 01791330309

CONTENTS

Corporate Bodies 5 Information for shareholders 6 Management report 7

Introduction 7

Performance highlights 7

The Eurotech Group 9

Statement of financial position 16

Investments and research & development 19

Competitive scenario, outlook and future growth strategy 19

Treasury shares of the Parent Company owned by the Parent Company or subsidiaries 19

Disclosure on sovereign exposure 20

Regulatory simplification process based on Consob resolution no. 18079/2012 20

Corporate governance information 20

Unusual and/or atypical transactions 20

Other information 20

Events after the reporting period 21

Condensed consolidated half-year financial statements at 30 June 2025 22

Consolidated statement of financial position 22

Consolidated income statement 23

Consolidated statement of comprehensive income 23

Consolidated statement of changes in equity 24

Consolidated cash flow statement 25

Explanatory notes to the financial statements 26

A - Corporate information 26

B - Reporting policies and IFRS compliance 26

C - Scope of consolidation 28

D - Segment reporting 29

E - Breakdown of main items of the statement of financial position 30

- Intangible assets 31
- Property, plant and equipment 34
- Equity investments in affiliates and other companies 35
- Inventories 37
- Trade receivables 38
- Tax receivables and payables 38
- Other current assets 39
- Other current financial assets 39
- Cash and cash equivalents 40
- Net financial position 40
- Equity 41
- Basic and diluted earnings (losses) per share 42
- Financial liabilities 43
- Employee benefits 43
- Provisions for risks and charges 44
- Trade payables 45
- Other current liabilities 45
- Payables for business combinations 46
F - Breakdown of the main income statement items 47
- Costs of raw and auxiliary materials and consumables 47
- Other operating costs net of cost adjustments 47
- Service costs 48
- Payroll costs 48
- Cost adjustments for internally generated non-current assets 49
- Other income 49
- Depreciation, amortisation and write-downs 49
- Financial income and charges 50
- Income tax for the period 50
- Statement of comprehensive income 51
G - Other information 52
- Related-party transactions 52
- Financial risk management: objectives and criteria 52
- Derivatives 55
- Share-based payments 55
- Non-recurring costs and revenues 59
- Events after the reporting period 59
- Seasonality of business activities 60

Certification of the Condensed Consolidated Half-Year Financial Statements 61 Independent Auditor's Report 63

Corporate Bodies

Board of Directors

Chairman Luca di Giacomo

Deputy Chairman Aldo Fumagalli 13

Chief Executive Officer Massimo Milan

Director Laura Amadesi 1 2 3 4 5

Director Davide Albino Carando 1

Director Michela Costa 1 2 3 4 5

Director Tiziana Olivieri 1 2 4 5

The current Board of Directors was appointed by the Ordinary Shareholders' Meeting on 27 April 2023, supplemented by the Ordinary Shareholders' Meeting on 15 October 2024, with regard to the appointment of Director Davide Albino Carando, and on 28 April 2025, with regard to the appointment of Director Tiziana Olivieri. Subsequently, the Board of Directors meeting of 5 June 2025, co-opted Director Massimo Milan, appointed concurrently as Chief Executive Officer, and the Board of Directors meeting of 23 June 2025, co-opted Director Laura Amadesi. In addition, the Shareholders' Meeting of 28 April 2025, resolved to reduce the number of directors from nine to seven.

Board of Statutory Auditors

Chairman Fabio Monti

Statutory Auditor Laura Briganti

Statutory Auditor Daniela Savi

Alternate Auditor Clara Carbone

Alternate Auditor Daniele Englaro

The Board of Statutory Auditors currently in office was appointed by shareholders at the Annual General Meeting of 27 April 2023, and will remain in office until approval of the 2025 financial statements.

Independent Auditor

Ernst & Young

The independent auditor was appointed for the period 2023-2031 by shareholders at the Annual General Meeting of 27 April 2023.

Corporate name and registered offices of the Parent Company

Eurotech S.p.A.

Via Fratelli Solari 3/A 33020 Amaro (Udine), Italy Udine Company

‌1 Non-executive Directors.

‌2 Independent directors pursuant to the Corporate Governance Code drawn up by the Corporate Governance Committee for Listed Companies.

‌3 Member of the Control and Risk Committee

‌4 Member of the Related Party Transactions Committee

‌5 Member of the Remuneration and Appointments Committee

Information for shareholders

The ordinary shares of Eurotech S.p.A., the Parent Company of the Eurotech Group, have been listed since 30 November 2005 in the Euronext Star Milan segment of the Euronext Milan market organised and managed by Borsa Italiana S.p.A.

Share capital of Eurotech S.p.A. at 30 June 2025 Share capital	€9,657,277.25
Number of ordinary shares (without nominal unit value specified)	38,629,109
Number of savings shares	-
Number of Eurotech S.p.A. ordinary treasury shares	240,606
Stock market capitalisation (based on the average share price in June 2025)	€40 million
Stock market capitalisation (based on the share price on 30 June 2025)	€40 million
Performance of Eurotech S.p.A. shares
Relative performance EUROTECH S.p.A. 01.01.2025 - 30.06.2025

The line chart shows the share's performance based on daily reference prices

The candle chart shows the share's daily maximum and minimum prices

Management report

Introduction

The consolidated financial statements of Eurotech Group were prepared in accordance with IFRS international accounting standards issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to Art. 6 of EC Regulation 1606/2002 of the European Parliament and European Council of 19 July 2002.

These condensed consolidated half-year financial statements at 30 June 2025 were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting", Art. 154-ter of the Consolidated Law on Finance as well as the relevant Consob provisions. This condensed consolidated half-year financial statements are subject to a limited audit according to the criteria recommended by Consob. The condensed consolidated half-year financial statements do not contain all the information and notes required for drafting the consolidated annual financial statements and therefore these financial statements must be read together with the consolidated annual financial statements at 31 December 2024.

Unless otherwise stated, data are expressed in thousands of euro.

Performance highlights Financial data

(€'000) OPERATING RESULTS	H1 2025	%	H1 2024 %	% change
SALES REVENUES	21.483	100,0%	29.261 100,0%	-26,6%
GROSS PROFIT MARGIN	10.588	49,3%	14.540 49,7%	-27,2%
EBITDA ADJ	(4.047)	-18,8%	(3.081) -10,5%	-31,4%
Non recurring costs	(1.236)	-5,8%	(409) -1,4%	-202,2%
EBITDA	(5.283)	-24,6%	(3.490) -11,9%	-51,4%
EBIT	(7.718)	-35,9%	(5.838) -20,0%	-32,2%
PROFIT (LOSS) BEFORE TAXES	(8.219)	-38,3%	(5.573) -19,0%	-47,5%
GROUP NET PROFIT (LOSS) FOR THE PERIOD	(7.564)	-35,2%	(5.511) -18,8%	-37,3%

Statement of financial position data

€'000 HIGHLIGHTS	at June 30, 2025	at December 31, 2024	at June 30, 2024
Non-current assets	71.419	73.075	95.423
- of which net intangible assets	60.886	62.425	83.101
- of which net tangible assets	7.759	8.367	6.658
Current assets	34.935	38.292	45.361
TOTAL ASSETS	106.354	111.367	140.784

Group shareholders' equity	56.046	60.664	86.121
Non-current liabilities	22.471	24.246	16.505
Current liabilities	27.837	26.457	38.158
TOTAL LIABILITIES AND EQUITY	106.354	111.367	140.784

€'000	at June 30, 2025	at December 31, 2024	at June 30, 2024
(NET FINANCIAL POSITION) NET DEBT	18.696	20.400	23.289
NET WORKING CAPITAL	9.516	14.684	20.315
NET INVESTED CAPITAL *	74.742	81.064	109.410
CASH FLOW DATA
Cash flow generated (used) in operations	191	4.277	(366)
Cash flow generated (used) in investment activities	(1.616)	(4.959)	(2.055)
Cash flow generated (absorbed) by financial assets	2.492	(4.182)	(2.818)
Net foreign exchange difference	(823)	(394)	(556)
TOTAL CASH FLOW	244	(5.258)	(5.795)

(*) Non-current, non-financial assets, inclusive of equity investments in associates and other companies and net working capital, minus non-current, non-financial liabilities.

Number of employees

at June 30,

2025

321

378

361

EMPLOYEES

at December 31, at June 30,

2024 2024

Revenues by geographic business area

North America

Europe

Asia

Correction, reversal and elimination

Total

(€' 000)

29.261

21.483

0 0

( 994) ( 3.255)

7.060

7.072

7.898

17.000

3.171

20.171

12.232

993

13.225

5.201

5.273

1.353

1.354

Third party Sales

Infra-sector Sales Total Sales revenues

H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024

Summary of the results

The Eurotech Group

Eurotech is a global company with a strong international focus, which generates sales on three continents. It is a Group that has operating offices in Europe, North America and Japan, led and coordinated by its headquarters in Italy.

Eurotech has a long tradition spanning more than 30 years in the design and manufacture of embedded computers for special applications, where the ability of computers to withstand hostile environments and the need for continuous, uninterrupted operation are the determining factors. This is a high-value, low-volume niche market that has enabled the company to maintain a gross margin above the industry average over the years.

For the past four years, Eurotech has been accelerating its move towards Edge Computing and Industrial IoT, with significant investments in its open-source software integrated with edge hardware, and in the differentiating OT cybersecurity certifications that characterize its portfolio. As a result, the historic embedded computer business is being run on a "run for cash" basis.

The factors that characterize Eurotech in the Industrial IoT landscape are as follows:

Eurotech's technology resolves the conflict between Operational Technology (OT) and Information Technology (IT) at the Edge, thanks to integrated solutions that combine hardware and software; this
conflict is unanimously recognized as the number one obstacle to the implementation of IoT projects by companies;
Plug&Play connectivity to field assets, which speeds up implementation times and reduces costs;
Thanks to its relationships with big names in IT such as Microsoft, Amazon, and Red Hat, Eurotech is able to provide certified connectivity to all major cloud platforms, reducing the time and risks of integration in a typical IoT project using these platforms to almost zero;
Eurotech's connection and integration technology has been designed and implemented using the best cybersecurity solutions and is certified according to the latest international standards (IEC 62443-4-1 and IEC 62443-4-2).
Today, the Group's offering is modular, with different levels of hardware and software integration, and is structured as follows:
Embedded PCs in the form of boards and subsystems, which represent Eurotech's historical offering and are purely hardware products with only the operating system integrated;
Industrial PCs (IPCs), which represent the main offering of InoNet Computer GmbH, the German subsidiary acquired in September 2022;
Edge gateways, i.e., devices that enable communication between assets operating in the field and data platforms in the cloud, both public and private;
Edge computers, i.e., rugged computing units located in the field, close to the assets and dedicated to the local processing of the data they generate;
Edge AI appliances, i.e., systems with integrated high-performance hardware and software for secure and remotely controllable processing of Artificial Intelligence algorithms directly in the field, eliminating unnecessary and costly data transfers to centralized servers;
Software for integration between Operational Technology and Information Technology: the "Everyware Software Framework" (ESF) edge framework on the OT side and the "Everyware Cloud" (EC) integration platform on the IT side.

The sectors in which the Group has historically generated most of its revenue are industry and transportation, followed by medical. More recently, the new offering of integrated hardware and software for industrial IoT applications has enabled the Group to enter new sectors, such as energy. From a strategic point of view, the Group's current choice is to focus on four vertical markets that combine greater size and higher growth rates in the coming years: industrial automation, transportation & off-road, medical, and renewable energy & energy-gas-water networks.

At 30 June 2025, the Eurotech Group consisted of the following companies:

Company name

Business activity

Share capital

Group share

Parent company

Eurotech S.p.A. It operates in the Edge Computer and Industrial IoT

market, with primary focus on the Italian and EMEA markets. In terms of organisation, it performs the role of industrial holding coordinating all subsidiaries of the Eurotech Group.

€9,657,277.25

Subsidiaries and consolidated companies on a line-by-line basis

E-Tech USA Inc.	Holding company that controls 100% of Eurotech Inc.	$8,000,000	100.00%
EthLab S.r.l.	Service company for research and development on behalf of the Group	€115,000	100.00%

Eurotech France S.A.S.	It operates in the French market, focusing on the IoT market in particular	€795,522	100.00%
Eurotech Inc.	It operates in the US market with a focus on the industrial, medical and transport sectors	$26,500,000	100.00%
Eurotech Ltd.	It operates mainly in the United Kingdom and in Northern Europe	£33,333	100.00%
I.P.S. Sistemi Programmabili S.r.l. in liquidation	Operates in the Italian market under the IPS brand	€51,480	100.00%
InoNet Computer GmbH	It operates under the InoNet brand in the DATCH market, providing highly reliable, powerful and robust industrial PCs	€250,000	100.00%
Advanet Inc.	It operates in the Japanese market with a focus on the industrial, medical and transport sectors	¥72,440,000	90.00% (1)

(1) For purposes of consolidation, it is considered as 100% owned, since Advanet Inc. holds the remaining 10% in the form of treasury shares.

Operating performance

(€'000) OPERATING RESULTS		H1 2025	%	H1 2024 %	% change
SALES REVENUES		21.483	100,0%	29.261 100,0%	-26,6%
GROSS PROFIT MARGIN	(*)	10.588	49,3%	14.540 49,7%	-27,2%
EBITDA ADJ	(****)	(4.047)	-18,8%	(3.081) -10,5%	-31,4%
Non recurring costs		(1.236)	-5,8%	(409) -1,4%	-202,2%
EBITDA	(**)	(5.283)	-24,6%	(3.490) -11,9%	-51,4%
EBIT	(***)	(7.718)	-35,9%	(5.838) -20,0%	-32,2%
PROFIT (LOSS) BEFORE TAXES		(8.219)	-38,3%	(5.573) -19,0%	-47,5%
GROUP NET PROFIT (LOSS) FOR THE PERIOD		(7.564)	-35,2%	(5.511) -18,8%	-37,3%

(*) Gross profit margin is the difference between revenues from sales of goods and services and use of raw materials. (**) EBITDA, an intermediate figure, is earnings before amortisation, depreciation and impairment of non-current assets,

financial income and expenses, the valuations of affiliates at equity and of income taxes for the period. This is a measure used by the Group to monitor and assess operating performance. Since the composition of EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.

(***) Operating profit (EBIT) is gross of investments in associates according to the equity method, of financial income and charges, and income tax for the period.

(****) The ADJ. EBITDA incorporates the EBITDA structure just defined above and isolates the cost and/or revenue components considered non-recurring by management. This is a measure used by the Group to monitor and assess its operating performance, net of any non-recurring costs or revenues that therefore do not occur frequently in the ordinary course of business. Since the composition of ADJ. EBITDA is not regulated by the reference accounting standards, the calculation criterion applied by the Group may not be consistent with that used by other companies and would therefore not be comparable.

Sales revenues for the first half of the year remain strongly affected by the factors already highlighted in the first quarter, with particular reference to the low order intake in the second half of 2024, due in particular to the crisis in the industrial sector in Europe, with a collapse in industrial production in Germany. Despite this, order intake for 2025 is encouraging and the backlog for the second half of the year allows us to estimate that the second six months of the year will exceed the turnover recorded in the first six months. Consolidated revenues for the first six months of 2025 amounted to €21.48 million, compared to €29.26 million in the first half of 2024. The decrease in turnover from one period to the next was 26.6%, an improvement compared to the 31.0% decrease recorded in the first quarter. At constant exchange rates, the change is essentially identical: -26.8%.

Revenues in the Edge AIoT segment remain the most significant, accounting for 59.2% of the total compared to 56.8% in the first six months of 2024; the traditional embedded business continued to decline, particularly due to the reduction in the United States, which was only partially offset by an increase in revenues in Japan.

Looking at the breakdown of revenues by geographic area of the Group's activities, the European area is the most significant with 56.9% of the total figure (H1 2024: 58.1%); the Japanese area is in second place with a contribution of 36.8% (H1 2024: 24.1%); lastly, the US area accounts for the remaining 6.3% (H1 2024: 17.8%).

The gross profit margin for the period amounted to €10.59 million, with an incidence on revenues of 49.3%. In percentage terms, this compares with 50.7% in the twelve months of 2024 and with a value of 49.7% in the first half of 2024.

The margin remained stable compared to the first half of 2024 and also compared to the first quarter of 2025, when it was 49.6%, due to a substantially consistent mix of products sold, combined with constant control of the costs of purchased components.

Operating costs in the first six months of the fiscal year, before adjustments made for internal increases in development activities of €1.52 million (€1.80 million in the first half of 2024), amounted to €17.69 million, compared to €20.11 million in the first half of 2024. Net of non-recurring costs of €1.24 million (€0.4 in the first half of 2024), total operating costs for the first half of the year amounted to €16.45 million. The reduction from the first six months of 2023 is thus €1.27 million, which becomes €1.68 million net of non-recurring costs. The reduction in operating costs was therefore considerable compared to the first six months of 2024: €2.42 million (-12%), which becomes €3.25 million (-16.5%) net of non-recurring costs. Non-recurring costs, reported in the income statement for the first half of 2025, relate to the Group's reorganization activities and concern three aspects in particular: one-off personnel costs related to workforce reduction, certain service costs incurred to facilitate and speed up this reorganization, and the portion relating to the severance pay granted to the Chief Executive Officer upon his departure in June 2025. In the first half of 2024, costs mainly related to personnel costs for workforce reorganization and, in part, to certain related service costs.

At historical exchange rates, there is a decrease in operating costs of 12.0%, which would be 12.2% at constant exchange rates. The reduction in operating costs has had its greatest impact in the United States, where a major reorganization took place between 2024 and 2025, affecting both staff and some of the services used locally. Other legal entities have also optimized the costs of their local operating structures and, where permitted, social safety nets have been used and agreements have been reached on salary reductions. As of June 30, 2025, there were 321 employees (361 as of December 31, 2024, and 378 as of June 30, 2024), with an average for the period of 347 (386 in the first half of 2024). Personnel costs, net of non-recurring costs, fell from €11.87 million (€11.91 million at constant exchange rates) to €10.33 million, a reduction of 13.0%. Including non-recurring costs, the change is 9.6%.

Gross operating costs as a percentage of revenues, due to the low level of revenues in the first half of the year, amounted to 81.9% (76.6% net of non-recurring costs) compared to 68.7% (67.3% net of non-recurring costs) in the first half of 2024.

Adjusted EBITDA i.e., net of non-recurring costs, amounted to €4.05 million (-35.5% of revenues) in the first six months of 2025, compared to €3.08 million (-10.5% of revenues) in the first six months of 2024. EBITDA for the first six months of 2025, considering non-recurring income statement items, amounted to €-5.28 million (-24.6% of revenues) compared to €-3.49 million (-11.9% of revenues) for the first six months of 2024.

In the first half, EBIT, i.e. the operating result, was €-7.72 million (-35.9% of revenues) compared to €-5.84 million in the first six months of 2024. In addition to the above, this performance reflects also the depreciation and the amortisation recognised in the income statement in the first six months of 2025.

The recognition of amortisation, depreciation and impairment of intangible assets and of property, plant and equipment had a €2.43 million impact compared to €2.35 million in the same period of 2024.

In the first six months of 2024, financial management recorded a loss of €0.50 million, compared with a gain of

€0.27 million in the first half of 2024. The value for 2025 was affected by the different currency trend, which resulted in a negative net exchange rate effect of €0.06 million compared to a value, again positive, of €0.43 million in 2024 and by the recognition of financial income and interest income of €0.03 million referring for

€0.40 million to the adjustment of the value of the liability recorded in the financial statements in 2022 as an earn-out for the acquisition of InoNet Computer GmbH.. Financial management relating to interest accounted

for €0.41 million, a lower value compared to the first half of 2024 (€0.56 million) mainly due to the interest rates decrease on loans payable contracted at a floating rate and not subject to hedging policies.

Pre-tax loss was €8.22 million compared to a still negative result of €5.57 million in the first six months of 2024.

Estimated taxes, calculated based on the rates established for the year, were a positive €0.66 million and mainly relate to the recognition of deferred tax assets on the results for the period of the German (€0.4 million) and Japanese (€0.16 million) companies, whose business plans provide for recoverability by the end of the year. No deferred tax assets were recognized on the results for the period of the Italian, American, and British companies, pending the definition of the Group's new business plan, which will support the identification of future taxable income..

The net result for the Group was €-7.56 million (it was negative for €5.51 million in the first six months of 2024) and its ratio to revenue was -35.2%.

Breakdown by geographic area

As indicated in the explanatory notes to the consolidated financial statements for the year ended December 31, 2024, the Group oversees a single line of business known as "Modules and Platforms", which comprises a) embedded computing modules and systems for industrial, transport, medical and energy uses; b) Edge computers featuring low power consumption and high performances, to be used both in Internet of Things (IoT) solutions and to create applications where Artificial Intelligence (AI) algorithms are used; c) software frameworks and platforms for IoT applications.

The segment reporting is presented based on the geographic area in which the various Group companies operate and are currently monitored. This is defined by the location of goods and operations carried out by individual Group companies. The geographic areas identified within the Group are: North America, Europe and Asia.

The development in revenues, including intersectoral revenues, and margins by individual geographic area and the relative changes in the periods under review are set out below.

(€' 000) Third party Sales	North America			Europe			Asia			Correction, reversal and elimination			Total
(€' 000) Third party Sales	H1 2025 1.353	H1 2024 5.201	% YoY Change	H1 2025 12.232	H1 2024 17.000	% YoY Change	H1 2025 7.898	H1 2024 7.060	% YoY Change	H1 2025 0	H1 2024 0	% YoY Change	H1 2025 21.483	H1 2024 29.261	% YoY Change
Infra-sector Sales	1	72		993	3.171		0	12		( 994)	( 3.255)		0	0
Total Sales revenues	1.354	5.273	-74,3%	13.225	20.171	-34,4%	7.898	7.072	11,7%	( 994)	( 3.255)	-69,5%	21.483	29.261	-26,6%
Gross profit	173	2.119	-91,8%	2.727	9.471	-71,2%	1.282	3.794	-66,2%	6.406	( 844)	-859,0%	10.588	14.540	-27,2%
Gross profit margin - %	12,8%	40,2%		20,6%	47,0%		16,2%	53,6%					49,3%	49,7%
EBITDA													( 5.283)	( 3.490)	-251,4%
EBITDA margin - %													-24,6%	-11,9%
EBIT													( 7.718)	( 5.838)	-232,2%
EBIT margin - %													-35,9%	-20,0%

Revenues in the North America business area amounted to €1.35 million in the first half of 2025, down 74.3% from €5.27 million in the first half of 2024. . This reduction is the result of a combination of two factors: a different distribution of turnover across the various quarters in 2025 compared to 2024 and a reduction in one-off sales of end-of-life products recorded in the first six months of last year.

The European business area showed a 34.4% decline in the half-year comparison, from €20.17 million in the first half of 2024 to €13.22 million in the first half of 2025. This performance is a consequence of the negative trend in orders, particularly in the second half of 2024. The order backlog suggests a partial recovery of the gap in the second half of the year.

As in previous years, the European area has the highest turnover in the Edge AIoT sector, which recorded an increase of approximately 7% in percentage terms, thus accounting for almost all of the turnover generated by this area.

The Asia business area showed an increase of 11.7%, from €7.07 million to €7.90 million, mainly due to a different distribution of revenues across the various quarters of the year compared to 2024.

The breakdown of revenues by type, which also in application of IFRS 15 represents the disclosure of disaggregated revenues, is as follows:

(€' 000) SALES BY TYPE	FY 2025	%	FY 2024 %	% change
Industrial revenues	17.622	82,0%	25.242 86,3%	-30,2%
Services revenues	3.861	18,0%	4.019 13,7%	-3,9%
TOTALE SALES AND SERVICE REVENUES	21.483	100,0%	29.261 100,0%	-26,6%

Based on the type of revenue, industrial revenue suffered the most significant decline. The reduction in service revenues was significantly more modest, falling by 3.9% year-on-year, attributable to lower customization related to engineering services for embedded projects for specific customers, while recurring revenues from software and professional services provided in the initial phases of new IoT projects remained constant.

The regional breakdown of revenues by customer location is shown below:

(€' 000) BREAKDOWN BY GEOGRAPHIC AREA	H1 2025	%	H1 2024	%	% change
European Union	10.526	49,0%	15.056	51,5%	-30,1%
United States	1.304	6,1%	4.867	16,6%	-73,2%
Japan	7.882	36,7%	7.026	24,0%	12,2%
Other	1.771	8,2%	2.312	7,9%	-23,4%
TOTAL SALES AND SERVICE REVENUES	21.483	100,0%	29.261	100,0%	-26,6%

Based on the breakdown of revenues by geographical area of the customer, it should be noted that revenues in the territory of the European Union remain predominant despite a reduction of 30.1%, with an incidence of 49.0% on total revenues in the first half year of 2025.

Despite a decrease of 12.2% in revenues, the Japan area is the second most significant area of the Group with an incidence of 36.7% (24.0% in the first half of 2024).

Finally, following the reduction in turnover in the two periods compared, the US area accounted for 6.1% (16.6% in the first half of 2024).

The remaining geographical areas accounted for 8.2% of total turnover in the first half of 2025 (7.9% in the first half of 2024).

Statement of financial position Non-current assets

Notes (€'000) Intangible assets 1	at June 30, 2025 60.886	at December 31, Changes 2024 62.425 ( 1.539)
Property, Plant and equipment 2	7.759	8.367 ( 608)
Investments in affiliate companies 3	4	4 -
Investments in other companies 3	138	152 ( 14)
Deferred tax assets 27	2.177	1.647 530
Other non-current assets	455	480 ( 25)
Total non-current assets	71.419	73.075 ( 1.656)

The Non-current assets item decreased from €73.07 million in the financial year 2024 to €71.42 million in the first half of 2025. The difference mainly reflects changes in intangible assets and property, plant and equipment arising from the different conversion ratio for financial statements in foreign currency, depreciation for the period as well as the investments made.

The Group's main investments are made in the following macro items:

(€'000) Intangible assets	at June 30, 2025 1.617	at June 30, 2024 1.793	Changes ( 176)
Property, plant and equipment	474	445	29
Investments	-	-	-
TOTAL MAIN INVESTMENTS	2.091	2.238	( 147)

Current assets

	at June 30,	at December 31,	Changes
(€'000)	2025	2024
Inventories	16.515	17.141	( 626)
Trade receivables	9.501	12.405	( 2.904)
Income tax receivables	693	934	( 241)
Other current assets	1.789	1.498 291
Other current financial assets	12	115	( 103)
Derivative instruments	11	29	( 18)
Cash & cash equivalents	6.414	6.170 244
Total current assets	34.935	38.292	( 3.357)

Current assets decreased compared to 31 December 2024: from €38.29 million at 31 December 2024 to €34.93 million at 30 June 2025.

The most significant items that have undergone changes are inventories and trade receivables, both of which have decreased.

The reduction in inventories is mainly due to write-offs made to adjust the value of stocks to their estimated realizable value.

The reduction in receivables is due to the collection of trade receivables generated in the fourth quarter of 2024 and to the volume of uncollected turnover generated in the half-year, which was lower than that generated in the first half of 2024.

Net working capital

Net working capital shows the following evolution in the period:

	at June 30,	at December at June 30,
	2025	31, 2024 2024 Changes
(€'000)	(b)	(a) (b-a)
Inventories	16.515	17.141 21.798 (626)
Trade receivables	9.501	12.405	14.377	(2.904)
Income tax receivables	693	934	1.454	(241)
Other current assets	1.789	1.498	1.918	291
Current assets	28.498	31.978	39.547	(3.480)
Trade payables	(10.297)	(9.040)	(11.733)	(1.257)
Trade payables from affiliates companies	(349)	(399)	(348)	50
Income tax liabilities	(733)	(953)	(837)	220
Other current liabilities	(7.603)	(6.902)	(6.314)	(701)
Current liabilities	(18.982)	(17.294)	(19.232)	(1.688)
Net working capital	9.516	14.684	20.315	(5.168)

The reduction in working capital compared to 31 December 2024 is mainly due to a higher reduction in current assets than in current liabilities. In particular, against a reduction in trade receivables of €2.90 million and inventories of €0.63 million, trade payables to thirds and to affiliated companies increased by a total of €1.21 million.

Net working capital as a rolling ratio of revenues in the last twelve months was 18.5%, compared to 24.8% at 31 December 2024 and 27.0% at 30 June 2024. The twelve-month figure is in line with the threshold value of 20%, which is the target set by management.

Net financial position

The following table shows the composition of the net financial position at the end of each period indicated, represented as defined by Consob notice no. 5/21 of 29 April 2021, which refers to the Guidelines of the European Securities and Markets Authority (ESMA), issued on 15 July 2020 and effective from 5 May 2021.

(€'000) Cash	A	at June 30, 2025 6.414	at December 31, 2024 6.170	at June 30, 2024 5.633
Cash equivalents	B	-	-	-
Other current financial assets	C	23	144	181
Cash equivalent	D=A+B+C	6.437	6.314	5.814
Current financial debt	E	4.261	6.808	8.249
Current portion of non-current financial debt	F	4.479	2.240	10.336
Other current financial liabilities	G	115	115	341
Short-term financial position	H=E+F+G	8.855	9.163	18.926
Short-term net financial position	I=H-D	2.418	2.849	13.112
Non current financial debt	J	16.278	17.551	10.177
Debt instrument	K	-	-	-
Trade payables and other non-current payables	L	-	-	-
Medium-/long-term net financial position	M=J+K+L	16.278	17.551	10.177
(NET FINANCIAL POSITION) NET DEBT ESMA	N=I+M	18.696	20.400	23.289

The consolidated net financial position as at 30 June 2025 amounted to a net financial debt of €18.70 million, an improvement of €1.70 million compared to a net financial debt of €20.40 million as at 31 December 2024. With reference to liquidity, which amounted to €6.41 million, during the period under review, cash flow from operating activities amounted to €0.19 million and cash flow from financing activities amounted to €2.49 million, while €1.62 million was used for investments.

For the sake of clarity, cash generated from financing activities is the result of capital contributions of €5 million by the relative majority shareholder Emera Srl, from new loans of €2.07 million net of repayments of short- and medium-term loans, which amounted to €4.06 million.

Cash flows

		at June 30,	at June 30,
(€'000)		2025	2024
Cash flow generated (used) in operations	A	191	( 366)
Cash flow generated (used) in investment activities	B	( 1.616)	( 2.055)
Cash flow generated (absorbed) by financial assets	C	2.492	( 2.818)
Net foreign exchange difference	D	( 823)	( 556)
Increases (decreases) in cash & cash equivalents	E=A+B+C+D	244	( 5.795)
Opening amount in cash & cash equivalents		6.170	11.428
Cash & cash equivalents at end of period		6.414	5.633

Investments and research & development

At 30 June 2025, technical investments (property, plant and equipment) in buildings, plants, equipment and instruments amounted to €182 thousand, while investments in other assets amounted to €44 thousand In addition, during the first half of the year, the Group purchased software licenses related to production for €39 thousand. Furthermore, contracts with usage rights were renewed for €248 thousand.

During the period, the Group invested in industrial research and development and technological innovation for new products. Research resulted in the development of new products/applications in the field of highly integrated, low-consumption computers and systems, IoT framework and integration platform, Edge computers, intelligent sensors and embedded supercomputers. Moreover, technological innovation enabled the Company to achieve improvements in product quality in order to reduce production costs, with a resulting increase in business competitiveness. In the period, development activities were capitalised for an amount of €1.58 million (€1.80 million in the first half of 2024).

Competitive scenario, outlook and future growth strategy

The order backlog at the end of the first half of 2025 does not allow for long-term visibility. However, the existing backlog and opportunities identified with customers suggest that the second half of the year will see much higher revenues than the first, with growth in both the legacy business and the Edge AIoT business. Although to a lesser extent than in the past, shortages of certain niche electronic components remain and are expected to continue at least until the end of the year; despite this, overall availability is good. Attention to developments in the global scenario remains high: for geopolitical issues involving Europe, with the war in Ukraine still ongoing; for tariffs applied by the United States to other countries where the group operates or, indirectly, where our customers operate; and for the impact that the continuing conflict in the Middle East may have on the supply chains of our customers and suppliers.

On the organizational side, there is a particular focus on reducing operating costs in line with revenue trends: over the next six months, the effects of the rationalization measures completed in the various geographical areas will continue to be felt, with further cost reductions in 2025 and an effect also in 2026.

More generally, the strategic direction for the Group's growth continues to be based on the following points:

focus on markets that combine a larger size and a higher growth rate (CAGR);
addressing applications in difficult environments or with high reliability requirements, which require more solutions using rugged devices;
focus on vertical markets and sectors in which IT-OT integration is most valued;
create growth both organically and through external lines, i.e. through the acquisition of new entities;
leverage both global and local accelerating factors and forces of change:
- Repatriation: switch AI processing from the cloud to the Edge
- New & smart energy
- Automation: increase process automation to improve efficiency

Treasury shares of the Parent Company owned by the Parent Company or subsidiaries

The Parent Company Eurotech S.p.A. held 240,606 treasury shares at the end of the reporting period. During the first half of 2025, no treasury shares of the Parent Company were purchased or sold on the market, nor were any shares assigned to employees under the existing performance plans.

Disclosure on sovereign exposure

Pursuant to Consob Communication no. DEM/11070007 of 5 August 2011 (a continuation of ESMA document 2011/266 of 28 July 2011) relating to disclosure in financial reports of the exposure of listed companies to sovereign debt, note that the Group does not hold sovereign debt securities.

Regulatory simplification process based on Consob resolution no. 18079/2012

Pursuant to Article 3 of Consob Resolution no. 18079 of 20 January 2012, Eurotech adopted the simplification (opt-out regime) procedure set out in Articles 70, paragraph 8, and 71, paragraph 1-bis, of the Regulation adopted by Consob with Resolution no. 11971 of 14 May 1999 as amended and supplemented. Therefore, it opts to derogate from the requirement to publish the information documents set out in Attachment 3B of this Consob Regulation for significant transactions such as mergers, spin-offs, capital increases via contributions in kind, acquisitions and sales.

Corporate governance information

The "Report on Corporate Governance and Ownership Structure" (hereinafter "Report") envisaged by Art. 123-bis of the Consolidated Law on Finance was prepared with reference to the year ended 31 December 2023 as an independent document, approved by the Board of Directors on 19 March 2024 and published on the Company's website at https://www.eurotech.com under the "Investors" section along with the financial statements.

The Report provides a general and complete overview of the corporate governance system adopted by Eurotech

S.p.A. The Company's profile and the principles to which it refers are described. It contains information on the ownership structure and compliance with the Corporate Governance Code, including the principal governance policies applied and the main features of the internal control and risk management system. Furthermore, it includes a description of the functioning and composition of administrative and control bodies and their committees, roles, responsibilities and competencies.

The criteria for determining directors' compensation are described in the "Remuneration Report", drafted in compliance with the requirements envisaged by Art. 123-ter of the Consolidated Law on Finance and Art. 84-quater of the Consob Issuers' Regulation and published under the "Investors/Shareholders' Meeting" section of the Company's website.

Unusual and/or atypical transactions

Based on the information received from Group companies, no unusual or atypical transactions took place as defined by Consob in its communication no. 6064293 of 28 July 2006.

Other information Russia-Ukraine conflict

The conflict between Russia and Ukraine, which has continued for over 3 years, continues to have important consequences at global level not only due to the serious humanitarian crisis that has ensued, but also due to the economic effects that are difficult to predict.

Although the Eurotech Group continues to have no relations with Ukraine and Russia, as it has no raw material suppliers and no production sites located in Russia and Ukraine, it cannot be excluded that a further escalation

of the conflict could have unforeseeable effects on other neighbouring countries and an impact on procurement costs. The situation is closely monitored in order to be able to react promptly to any changes in the context

Israel - Palestine conflict

With regard to the conflict in the Middle East between Israel and Palestine, which arose at the beginning of October 2023, although there are no direct implications for the Group as there are no trade relations in that area, the general ramifications are still definitely uncertain and they should become more unstable over time. Also in this case, from an initial analysis, there could be impacts both in terms of cost volatility (e.g. energy) and in international trade relations. The situation remains monitored in order to take important remedial actions in the event of a worsening of the conflict or its territorial expansion.

Events after the reporting period

With the aim of supporting the achievement of the Eurotech Group's next objectives, without further increasing its exposure to credit institutions and at the same time strengthening the Company's capital structure, the relative majority shareholder, Emera S.r.l., after signing a commitment in January 2025 to make payments in exchange for a future capital increase of €6 million, which had already been paid in full by July, signed a further commitment in September 2025 to support the Group's cash requirements up to an additional amount of €6.5 million.

In addition, the directors, who last year received a mandate from the shareholders' meeting to carry out a capital increase, even in several tranches, up to a maximum of €20 million (to date executed for €2.5 million in conversion of future capital increase payments already made by Emera S.r.l.), have convened a shareholders' meeting for the 15 October 2025, in order to submit for shareholders' approval the amendment to the Articles of Association regarding the thresholds for the mandatory public tender offer (PTO), currently set at 30% of the share capital, with a request to raise this ratio to the maximum of 40% provided for by applicable regulations.

No other significant events occurred after the end of the half-year and up to 11 September 2025.

Condensed consolidated half-year financial statements at 30 June 2025

Consolidated statement of financial position

(€'000) ASSETS	Notes	at June 30, 2025	of which related parties	at December 31, 2024	of which related parties
Intangible assets	1	60.886	62.425
Property, Plant and equipment	2	7.759	8.367
Investments in affiliate companies	3	4	4
Investments in other companies	3	138	152
Deferred tax assets	27	2.177	1.647
Other non-current assets		455	480
Total non-current assets		71.419	73.075
Inventories	4	16.515	17.141
Trade receivables	5	9.501	12.405
Income tax receivables	6	693	934
Other current assets	7	1.789	1.498
Other current financial assets	8	12	115
Derivative instruments	31	11	29
Cash & cash equivalents	9	6.414	6.170
Total current assets		34.935	38.292
Total assets		106.354	111.367
LIABILITIES AND EQUITY
Share capital		9.657	8.879
Reserves		( 84.169)	( 48.460)
Share premium reserve		138.122	136.400
Net profit (loss) for period		( 7.564)	( 36.155)
Other reserves		( 91.733)	( 84.615)
Group shareholders' equity	11	56.046	60.664
Equity attributable to minority interest	11	-	-
Total shareholders' equity	11	56.046	60.664
Medium-/long-term borrowing	13	16.278	17.551
Employee benefit obligations	14	2.242	2.331
Deferred tax liabilities	27	3.011	3.164
Other non-current liabilities	15	940	1.200
Total non-current liabilities		22.471	24.246
Trade payables	16	10.297	9.040
Trade payables from affiliates companies	16	349	349	399	399
Short-term borrowing	13	8.740	9.048
Income tax liabilities	6	733	953
Other current liabilities	17	7.603	6.902
Business combination liabilities	18	115	115
Total current liabilities		27.837	26.457
Total liabilities		50.308	50.703
Total liabilities and equity		106.354	111.367

Consolidated income statement

(Migliaia di Euro) Revenues from sales of products and services	Notes	H1 2025 21.483	of which of which non related recurrent parties -	H1 2024 29.261	of which of which non related recurrent parties 3
Other revenues	24	303		279
Operating costs: Cost of materials	19	( 10.895)		( 14.721)
Service costs	21	( 6.020)	( 569) ( 171)	( 6.924)	( 116)
Lease & hire costs	20	( 351)		( 474)
Payroll costs	22	( 10.899)	( 568)	( 12.053)	( 182) ( 526)
Other provisions and other costs	20	( 422)	( 99)	( 663)	( 111)
Cost adjustments for in-house generation of non-current	20	1.518		1.805
Depreciation & amortisation	25	( 2.435)		( 2.263)
Asset impairment		-	-	( 85)	-
Operating profit		( 7.718)	( 1.236)	( 5.838)	( 409)
Finance expense	26	( 955)		( 1.403)
Finance income	26	454		1.668
Profit before taxes		( 8.219)		( 5.573)
Income tax	27	655		62
Net profit (loss)		( 7.564)		( 5.511)
Minority interest		-		-
Group net profit (loss) for period		( 7.564)		( 5.511)
Base earnings (losses) per share	12	(0,214)		(0,156)
Diluted earnings (losses) per share	12	(0,214)		(0,156)

Consolidated statement of comprehensive income

(€'000) Notes Net profit (loss) before minority inerest (A)	H1 2025 (7.564)	H1 2024 (5.511)

Other elements of the statement of comprehensive income
Other comprehensive income to be reclassified to profit or loss insubsequent periods:
Net profit/(loss) from Cash Flow Hedge 31	(18)	(31)
Foreign balance sheets conversion difference	679	(4.215)
Exchange differences on equity investments in foreign companies 11	(2.728)	522
After taxes net other comprehensive income to be reclassified to profit or loss in subsequent periods (B)	(2.067)	(3.724)

Comprehensive net result (A+B+C)	(9.631)	(9.235)
Comprehensive minority interest	-	-
Comprehensive Group net profit (loss) for period	(9.631)	(9.235)

Consolidated statement of changes in equity

Cash flow

Actuarial gains/(losses) on

Exchange

rate

Group

Equity attributable

Total

Legal

premium Conversion

Other

hedge

defined benefit

differences

Treasury

Profit (loss) shareholder

to Minority shareholder

(€'000)

capital

reserve

reserves

reserve

plans reserve

reserve

for period

s' equity

interest

s' equity

Balance as at December 31, 2023	8.879	1.776	136.400	375	( 51.270)	102	( 543)	3.380	( 662)	( 3.118)	95.319	-	95.319
2023 Result allocation -		-	-	-	( 3.118)	- -		-	-	3.118 -		-	-
Profit (loss) as at December 31, 2024	-	-	- -		-	-	-	-	- ( 36.155)		( 36.155)	-		( 36.155)
Comprehensive other profit (loss):
- Hedge transactions	-	-	- -			( 73)	-	-	- -		( 73)	-		( 73)
- Actuarial gains/(losses) on defined benefit plans for employees	-	-	- -			-	30	-	-		30	-		30
- Foreign balance sheets conversion difference	-	-	- ( 2.562)		-			-	- -		( 2.562)	-		( 2.562)
- Exchange differences on equity investments in foreign companies	-	-	- -			-	-	1.231	- -		1.231	-		1.231
Total Comprehensive result	-	-	- ( 2.562)		-	( 73)	30	1.231	- ( 36.155)		( 37.529)	-		( 37.529)
- Performance Share Plan	-	-	- -		387	-	-	-	- -		387	-		387
- Future capital increase payment			-		2.500	-			-		2.500			2.500
Change in consolidation area	-	-	- -		( 13)	-	-	-	- -		( 13)	-		( 13)
Balance as at December 31, 2024	8.879	1.776	136.400 ( 2.187)		( 51.514)	29	( 513)	4.611	( 662) ( 36.155)		60.664		-	60.664

Cash flow

Actuarial gains/(losses) on

Exchange

rate

Group

Equity attributable

Total

Legal

premium Conversion

Other

hedge

defined benefit

differences

Treasury

Profit (loss) shareholder

to Minority shareholder

(€'000)

capital

reserve

reserves

reserve

plans reserve

reserve

for period

s' equity

interest

s' equity

Balance as at December 31, 2024	8.879	1.776	136.400	( 2.187)	( 51.514)	29	( 513)	4.611	( 662)	( 36.155)	60.664	-	60.664
2024 Result allocation -		-	-	-	( 36.155)	- -		-	-	36.155 -		-	-
Profit (loss) as at June 30, 2025	-	- -		-	-	-	-	-	- ( 7.564)		( 7.564)	- ( 7.564)
Comprehensive other profit (loss):
- Hedge transactions	-	- -		-		( 18)	-	-	- -		( 18)	- ( 18)
- Actuarial gains/(losses) on defined benefit plans for employees	-	- -		-	( 22)	-	22	-	-		-	- -
- Foreign balance sheets conversion difference	-	- -		679	-			-	- -		679	- 679
- Exchange differences on equity investments in foreign companies	-	- -		-		-	-	( 2.728)	- -		( 2.728)	- ( 2.728)
Total Comprehensive result	-	- -		679	( 22)	( 18)	22	( 2.728)	- ( 7.564)		( 9.631)	- ( 9.631)
- Performance Share Plan	-	- -		-	114	-	-	-	- -		114	- 114
Increase of capital	778	1.722		-	( 2.601)	-			-		( 101)	( 101)
Future capital increase payment				-	5.000	-			-		5.000	5.000
Change in consolidation area	-	- -		-	-	-	-	-	- -		-	- -
Balance as at June 30, 2025	9.657	1.776	138.122	( 1.508)	( 85.178)	11	( 491)	1.883	( 662)	( 7.564)	56.046	-	56.046

Consolidated cash flow statement

CONSOLIDATED CASH FLOW STATEMENT (€'000) CASH FLOWS GENERATED BY OPERATIONS:	Notes	at June 30, 2025	of which at June 30, related 2024 parties	of which related parties
Group net profit (loss) for period		( 7.564)	( 5.511)
Adjustments to reconcile reported net profit with cash & cash equivalents generated (used) in operations:
Depreciation & amortization intangible assets, property, plant and	25	2.435	2.348
Interest income	26	( 3)	( 2)
Interest expenses	26	416	566
Income taxes of the period	27	-	( 238)
Stock Grant expenses	22	114	37
Provision for (use of) long-term employee severance indemnities	14	( 89)	( 147)
Provision for (use of) risk provision	15	( 260)	58
(Provision for) / use of deferred tax asset / Provision for (use of) deferred tax liability	27	365	( 207)
Changes in current assets and liabilities
Trade receivables	5	2.529	(2) 4.917	(1)
Other current assets	7	21	( 26)
Inventories and contracts in process	4	198	( 510)
Trade payables	16	1.365	(32) 600	(264)
Other current liabilities	17	664	( 2.251)
Total adjustments and changes		7.755	5.145
Cash flow generated (used) in operations		191	( 366)
CASH FLOW FROM INVESTMENT ACTIVITIES:
Sales of tangible and intangible assets	1/2	82	4
Interest income	30	3	2
Purchase of intangible fixed assets	1	( 1.617)	( 1.793)
Purchase of tangible fixed assets	2	( 226)	( 342)
Decreases (Increases) other financial assets	8	103	33
Net (investments) Divestments in long-term investments and non-current as		39	41
Cash flow generated (used) in investment activities		( 1.616)	( 2.055)
CASH FLOW FROM FINANCING ACTIVITIES:
Other changes in shareholders' equity	11	4.899	-
Loans taken	13	2.069	450
Interest paid		( 416)	( 566)
(Repaid) loans short and medium/long term	13	( 4.060)	( 2.702)
Cash flow generated (absorbed) by financial assets		2.492	( 2.818)
Net foreign exchange difference		( 823)	( 556)
Increases (decreases) in cash & cash equivalents		244	( 5.795)
Opening amount in cash & cash equivalents	9	6.170	11.428
Cash & cash equivalents at end of period	9	6.414	5.633

Explanatory notes to the financial statements

A - Corporate information

The publication of the condensed consolidated half-year financial statements of Eurotech S.p.A. for the period ended 30 June 2025 was authorised by resolution of the Board of Directors on 11 September 2025. Eurotech

S.p.A. is a joint-stock company incorporated and domiciled in Italy. The Group has its registered office in Amaro (UD), Italy.

Eurotech is a Group active in the research, development, and marketing of miniaturised computers and high-performance computers featuring high energy capacity. Moreover, within this business line it provides complete solutions or blocks of solutions and products for the Internet of Things through intelligent devices and an intelligent proprietary connectivity and communications platform. For more information, see Note D.

B - Reporting policies and IFRS compliance

The consolidated annual financial statements of Eurotech Group were prepared in accordance with IFRS international accounting standards issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to Art. 6 of EC Regulation 1606/2002 of the European Parliament and European Council of 19 July 2002.

These condensed consolidated half-year financial statements for the six-month period ended 30 June 2025 were prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting", Art. 154-ter of the Consolidated Law on Finance and subsequent amendments, as well as the relevant Consob provisions. These condensed consolidated half-year financial statements do not contain all the information and notes required for drafting the consolidated annual financial statements and therefore this report must be read together with the consolidated annual financial statements at 31 December 2024.

To prepare the interim financial statements, management must make estimates and assumptions that affect the values of revenues, costs, assets and liabilities in the financial statements and the disclosure of potential assets and liabilities at the interim reporting date. If in the future, these estimates and assumptions, which are based on management's best valuations, differ from the actual circumstances, they would be modified appropriately in the period in which the circumstances arise. For a more detailed description of the Group's most significant valuation processes, please refer to note "C - Discretionary valuations and relevant accounting estimates" in the consolidated financial statements at 31 December 2024.

Moreover, note that certain valuation processes, in particular, more complex ones, such as calculating any impairment of non-current assets, are generally carried out fully only upon drafting of the annual financial statements, when all necessary information is available, except in cases in which there are impairment indicators that require an immediate valuation of any losses in value.

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

The accounting standards, consolidation principles, and valuation criteria adopted for the preparation of the condensed consolidated half-year financial statements are consistent with those used for the preparation of the consolidated financial statements at 31 December 2024. The sole exception is for the adoption of new accounting standards, amendments and interpretations in force from 1 January 2025.

Following are the standards, amendments and interpretations that became effective as of 1 January 2025 and that were applicable for the first time to the condensed consolidated half-year financial statements at 30 June 2025. The application of these standards had no particular impact on the consolidated financial statements of the Group since they regulate matters not present, or affect only financial reporting:

Amendments to IAS 21: The Effects of Changes in Foreign Exchange Rates - On November 12, 2024, Regulation (EU) No. 2024/2862 was issued, incorporating certain amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates. The amendments clarify how an entity should operate/calculate and how it should determine the spot exchange rate if a currency, although convertible, has a lack of convertibility (a relatively uncommon

situation but one that could arise, for example, when authorities impose currency controls that prohibit currency exchange or limit the volume of transactions). In addition, the amendments require disclosures that enable users of financial statements to understand the impact of a currency not being freely convertible.

These amendments had no impact on the Group's half-yearly condensed consolidated financial statements.

The following is a brief description of the IFRS accounting standards, amendments, and interpretations that have not yet been endorsed by the European Union. As of the date of this document, the competent bodies of the European Union have not yet completed the endorsement process necessary for the adoption of the amendments and standards described below.

IFRS 18 Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, which replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for the presentation of the income statement, including specific totals and subtotals. Furthermore, entities will have to classify all costs and revenues within the income statement into four categories: operating, investing, financing, income taxes, and discontinued operations, where the first three categories are new.

The standard also requires disclosure based on the new definition of management-defined performance measures (MPMs), subtotals of costs and revenues, and includes new provisions for the aggregation and disaggregation of financial information based on the identified roles of Primary Financial Statements (PFS) and notes.

In addition, amendments have been made to IAS 7 Cash Flow Statements, which include changing the starting point for determining cash flows from operating activities using the indirect method from profit or loss to operating profit or loss and removing the option to classify cash flows from dividends and interest. Furthermore, consequential amendments have been made to several other accounting standards.

IFRS 18 and the amendments to other standards are effective for financial years beginning on or after 1 January 1 2027, but early application is permitted with disclosure. IFRS 18 will be applied retrospectively.

The Group is currently working to identify the impact that the amendments will have on the financial statements and notes to the financial statements.

IFRS 19 Subsidiaries without Public Accountability: Disclosure

In May 2024, the IASB issued IFRS 19, which allows eligible entities to opt for a reduction in their disclosure requirements while continuing to apply the provisions for recognition, measurement, and presentation in other IFRS accounting standards. To be eligible, at the end of the financial year, an entity must be a subsidiary as defined in IFRS 19, must not have public accountability, and must have a parent (ultimate or intermediate) that prepares consolidated financial statements, available to the public, prepared in accordance with IFRS accounting standards.

IFRS 19 will become effective for financial years beginning on or after 1 January 2027, with the possibility of early application.

As the Group's shares are publicly traded, the Group is not eligible for the application of IFRS 19.

The transition requirements clarify that an entity is not required to provide disclosures in interim financial statements for the first period of application of the amendments. Consequently, the amendments had no impact on the Group's condensed consolidated half-year financial statements.

The condensed consolidated half-year financial statements at 30 June 2025 are drawn up in euro, rounding amounts to the nearest thousand. They consist of the statement of financial position, the income statement, the statement of comprehensive income, the Consolidated statement of changes in Equity, the Consolidated statement of cash flows, and the following explanatory notes.

The data used for consolidation have been taken from the income statements and statements of financial position prepared by the Directors of individual subsidiaries. These figures have been appropriately amended and restated as necessary to align them with international accounting policies and with uniform Group-wide classification policies.

The condensed consolidated half-year financial statements were prepared in accordance with the general criteria of reliable and accurate presentation of the Group's financial position and results, as well as the cash flows, in compliance with the general principles of business continuity, accrual accounting, consistency of presentation, materiality and aggregation, prohibition of offsetting, and comparability of information.

Going concern

The Group's directors analyzed various internal and external factors (referring in this regard not only to the comments included in the management report, the information provided in the paragraphs on liquidity risk and subsequent events), also taking into account the current geopolitical situation, to identify the risks and uncertainties surrounding the adoption of the going concern assumption in the preparation of the condensed consolidated financial statements at June 30, 2025. In particular, the Group's performance in the first half of the year was analyzed, which, particularly for the Parent Company, showed lower than expected results in terms of revenues and margins. Although the approval of the Group's new business plan is expected at the end of the financial year, according to the procedures and timelines usually adopted by management, the directors updated a sensitivity analysis of the plan approved in March 2025 based on the information provided by the individual Group companies and the actions already taken in the first eight months of the year, as described in more detail in the section on impairment testing. The assumptions adopted in the sensitivity analyses carried out on the 2025-2029 plan, in order to obtain prospective cash flows updated as at the date of preparation of this financial report, highlighted the need to continue to rely on the support of financial institutions and shareholders in order to sustain the planned investments and, in general, the cash requirements identified by management. The analysis carried out by management, which examined the cash position of the Parent Company and Group companies over a time horizon of at least twelve months from the approval of the half-yearly report, considered the existing financial resources, as well as the credit lines granted and partially used by Group companies and the mitigation measures adopted, including the delegation of powers to the directors to carry out a capital increase of a further €17.5 million (after having already carried out a capital increase of €2.5 million in June 2025), and the related availability communicated by the relative majority shareholder to support the Company with additional payments towards a future capital increase of up to €6.5 million, it did not identify any significant uncertainties regarding the adoption of the going concern assumption for a period of at least twelve months from the reference date of these condensed consolidated half-year financial statements. This analysis highlighted the availability of sufficient financial resources to meet the commitments undertaken both for business operations and for existing loans, continuing interactions with lenders to obtain financial support consistent with prospective cash flows, which will be updated again with the preparation of the Group's new business plan.

C - Scope of consolidation

The condensed consolidated half-year financial statements include the half-year financial statements of the Parent Company, Eurotech S.p.A., and the Italian and foreign subsidiaries in which Eurotech directly or indirectly (through subsidiaries and affiliates) exercises control, makes financial and operating decisions and obtains the respective benefits.

Subsidiaries are consolidated from the date at which control is effectively transferred to the Group, and cease to be consolidated on the date at which control is transferred outside the Group.

The companies consolidated line-by-line in the basis of consolidation at 30 June 2025 are as follows:

Company name Registered offices Share capital Group share

Parent company

Eurotech S.p.A. Via Fratelli Solari, 3/A - Amaro

€ 9,657,277

(UD)

Subsidiaries consolidated line-by-line
EthLab S.r.l.	Via Dante, 300 - Pergine (TN)	Valsugana	€	115,000	100.00%
Eurotech Inc.	Columbia - MD (USA)		USD	26,500,000	100.00%
Eurotech Ltd.	Cambridge (UK)		GBP	33,333	100.00%
E-Tech USA Inc.	Columbia - MD (USA)		USD	8,000,000	100.00%
Eurotech France S.A.S.	Lyon (France)		EUR	795,522	100.00%
I.P.S. Sistemi Programmabili S.r.l. in liquidation	Via Fratelli Solari 3/A (Udine, Italy)	- Amaro	EUR	51,480	100.00%
InoNet Computer GmbH	Taufkirchen (Germany)		EUR	250,000	100.00%
Advanet Inc.	Okayama (Japan)		JPY	72,440,000	90.00% (1)

(1) Officially, the Group owns 90% of the company, but as Advanet holds 10% of the share capital in the form of treasury shares, it is fully consolidated.

Affiliates consolidated at equity
Rotowi Technologies S.p.A. in liquidation (formerly U.T.R.I. S.p.A.)	Via Carlo Ghega, 15 - Trieste	21.31%
Other smaller companies
Kairos Autonomi Inc.	Sandy - UT (USA)	19.00%

As there were no changes in the period ending 30 June 2025 compared to the situation existing at 31 December 2024, it should be noted that in July the French company Eurotech France S.A.S. was liquidated.

The exchange rates used to convert the financial statements of foreign companies into the Eurotech Group's reference currency (euro) are presented in the following table and correspond to those issued by the Bank of Italy:

	Average 6M	As of June	Average	As of	Average 6M	As of June
Currency	2025	30, 2025	2024	December 31, 2024	2024	30, 2024
British pound sterling	0,84229	0,85550	0,84662	0,82918	0,85465	0,84638
Japanese Yen	162,11952	169,17000	163,85191	163,06000	164,46135	171,94000
USA Dollar	1,09275	1,17200	1,08238	1,03890	1,08125	1,07050

D - Segment reporting

For management purposes, the Group considers only one business sector as relevant: the "Modules and Platform" sector. Thus, the disclosure is provided for the sole identified sector, broken down on a geographical basis. The geographical areas are produced in relation to the various group entities and based on the criteria with which they are currently monitored by top management.

The Group's geographical areas are defined according to the localisation of Group assets and operations. They are: Europe, North America and Asia.

Management monitors the gross profit margin of the individual business units separately for the purposes of resources allocation and performance assessment.

(€' 000)

H1 2025

North America

Europe

Asia

Correction, reversal and elimination

Total

	% YoY			% YoY			% YoY			% YoY			% YoY

	Change			Change			Change			Change			Change
Third party Sales	1.353	5.201	12.232	17.000	7.898	7.060		0	0		21.483	29.261
Infra-sector Sales	1	72	993	3.171	0	12		( 994)	( 3.255)		0	0
Total Sales revenues	1.354	5.273 -74,3%	13.225	20.171 -34,4%	7.898	7.072	11,7%	( 994)	( 3.255)	-69,5%	21.483	29.261 -26,6%

H1 2024

H1 2025

H1 2024

H1 2025

H1 2024

H1 2025

H1 2024

H1 2025

H1 2024

With regard to the sales performance by geographic area, shown in the table above, to be noted is - as already mentioned - that the European area had a slight decrease while the other two geographic areas sustained more noticeable decreases.

The table below shows assets and investments in the Group's individual business segments at 30 June 2025 and 31 December 2024.

(€'000)

North America Europe Asia Correction, reversal and elimination

Total

H1 2025		FY 2025	H1 2025	FY 2025	H1 2025	FY 2025	H1 2025	FY 2025	H1 2025	FY 2025
Assets and liabilites
Segment assets	2.777	5.660	71.763	75.080	57.656	60.444	-25.984	-29.958	106.212	111.226
Investments in subsidiaries non
consolidated, associate & other companies	112	126	30	30	0	0	0	0	142	156
Total assets	2.889	5.786	71.793	75.110	57.656	60.444	-25.984	-29.958	106.354	111.382
Segment liabilities	784	1.734	39.960	39.804	14.054	14.706	-4.490	-5.541	50.308	50.703
Total liabilities	784	1.734	39.960	39.804	14.054	14.706	-4.490	-5.541	50.308	50.703
Other segment information
Investments in tangible assets	0	6	168	393	306	2.633	0	0	474	3.032
Investments in intangible assets	0	0	1.458	3.110	159	107	0	0	1.617	3.217
Depreciation & amortisation	85	321	1.577	2.995	625	1.051	148	22.934	2.435	27.301