IP - Annual Report 2024 - 9 May 2025

TLEBLOWING

AN

as of 31/12/2024

INTERPUMP

GROUP

COMPOSITION OF CORPORATE BODIES 9

REPORT ON OPERATIONS FOR 2024 11

FINANCIAL HIGHLIGHTS OF THE INTERPUMP GROUP 12

KEY EVENTS IN 2024 15

ALTERNATE PERFORMANCE MEASURES 23

CONSOLIDATED INCOME STATEMENT 24

1. REVENUES 25

2. PROFITABILITY 26

   CASH FLOW 28

   GROUP STATEMENT OF FINANCIAL POSITION 30

3. CAPITAL EXPENDITURE 31

4. RESEARCH, DEVELOPMENT AND DESIGN WORK 32

5. SUSTAINABILITY AND GROUP VALUES 32

   1. Code of Ethics 34

   2. Global Compliance Program 34

   3. Organization, Management and Control Model (231 Model) 35

   4. Management systems 35

6. EXPOSURE TO RISKS AND UNCERTAINTIES AND FINANCIAL RISK FACTORS 36

   1. Market risks 36

   2. Credit risk 37

   3. Liquidity risk 37

   4. Price and cash flow risk 37

   5. Climate risks 38

7. CORPORATE GOVERNANCE 39

8. STOCK OPTION PLANS 40

9. RELATIONS WITH GROUP COMPANIES AND TRANSACTIONS WITH RELATED PARTIES 42

10. TREASURY SHARES 42

11. RECONCILIATION WITH THE FINANCIAL STATEMENTS OF THE PARENT COMPANY 42

12. GROUP COMPANIES 43

13. EVENTS OCCURRING AFTER THE CLOSE OF THE YEAR AND BUSINESS OUTLOOK 54

14. OTHER INFORMATION 54

Sustainability Reporting - CSRD 55

1. ESRS 2 - GENERAL DISCLOSURES 55

   1. PREPARATION CRITERIA 55

   2. Governance 60

   3. Strategy 66

   4. Management of Impacts, Risks, and Opportunities 100

2. ENVIRONMENTAL INFORMATION 114

   1. DISCLOSURE UNDER THE TAXONOMY REGULATION 114

   2. Assessment of compliance with the Regulation 115

   3. Minimum Safeguards 118

3. ESRS E1 - CLIMATE CHANGE 125

   1. Governance 125

   2. Strategy 125

   3. Management of Impacts, Risks, and Opportunities 129

CONSOLIDATED FINANCIAL STATEMENTS AT 31/12/2024 187

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 188

CONSOLIDATED INCOME STATEMENT 190

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 191

CONSOLIDATED CASH FLOW STATEMENT 192

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 194

NOTES TO THE ANNUAL FINANCIAL REPORT 195

1. General information 195

2. Consolidation perimeter 195

   1. Rights of minorities to dispose of their holdings (put options) 198

   2. Rights and obligations of minorities to dispose of their holdings (put & call options) 199

   3. Obligations of the Group to purchase minority holdings 199

3. Accounting standards adopted 199

   1. Reference accounting standards 199

   2. Consolidation principles 203

   3. Business sector information 205

   4. Treatment of foreign currency transactions 206

   5. Property, plant and equipment 207

   6. Goodwill 208

   7. Other intangible fixed assets 209

   8. Impairment of assets 210

   9. Equity investments 210

   10. Cash and cash equivalents 211

   11. Financial assets (Trade receivables, Other financial assets and Other assets) 211

   12. Inventories 212

   13. Share capital and treasury shares 212

   14. Financial liabilities (Trade payables, Bank debts, Interest-bearing financial debts and Other liabilities) 213

   15. Liabilities for employee benefits 213

   16. Income taxes 214

   17. Provisions for risks and charges 215

   18. Revenues 215

   19. Costs 216

4. Business sector information 217

5. Business combinations 222

6. Cash and cash equivalents 232

7. Trade receivables 233

8. Inventories 233

9. Tax receivables and Other current assets 234

10. Property, plant and equipment 235

11. Goodwill 236

12. Other intangible fixed assets 238

13. Other financial assets 239

14. Deferred tax assets and liabilities 241

15. Assets and liabilities held for sale 241

16. Interest-bearing financial debts and Bank debts 241

17. Trade payables and Other current liabilities 245

18. Provisions for risks and charges 246

19. Liabilities for employee benefits 247

20. Other non-current liabilities 248

21. Share capital 249

22. Reserves 254

23. Non-controlling interests 256

24. Revenues and Other operating income 257

25. Costs by nature 258

26. Directors' and statutory auditors' remuneration 258

27. Financial income and expenses 259

28. Income taxes 260

29. Earnings per share 264

30. Information on financial assets and liabilities 265

31. Information on financial risks 267

    1. Exchange risk 267

    2. Exchange risk sensitivity analysis 269

    3. Interest-rate risk 269

    4. Sensitivity analysis related to interest-rate risk 269

    5. Credit risk 269

    6. Liquidity risk 270

    7. Price risk 271

    8. Climate risks 272

32. Notes to the cash flow statement 273

    1. Property, plant and equipment 273

    2. Cash and cash equivalents 273

    3. Net financial position and cash flow statement 273

33. Commitments 273

34. Transactions with related parties 274

    1. Relations with non-consolidated subsidiaries 275

    2. Relations with associates 276

    3. Transactions with other related parties 276

35. Events occurring after the close of the year 276

Annex 1: Certification of the consolidated financial statements pursuant to art.

81-(3) of Consob regulation no. 11971 of 14 May 1999, as amended 277

Annex 2: Attestation of the sustainability report pursuant to art. 81-(3), sub-

section 1, of Consob Regulation no. 11971 of 14 May 1999, as amended 278

Statutory Auditors' Report to the Shareholders' Meeting of Interpump Group

S.p.A. 279

Independent auditor's report on consolidated financial statement 297

Independent Auditor's Report on Limited Review of Consolidated Sustainability Reporting 304

Interpump Group S.p.A. Separate financial statements at 31 December 2024

309

1. Member of the Control and Risks Committee

2. Member of the Remuneration Committee and the Nomination Committee

3. Member of the Related Party Transactions Committee

4. Member of the Sustainability Committee

ROE: Consolidated net profit / Consolidated shareholders' equity

ROCE: Consolidated operating profit / (Consolidated shareholders' equity + Net indebtedness)

Dividends refer to the year of formation of the distributed profit.

‌1Inclusive of the debt related to the acquisition of investments.

* = Proposed dividend, subject to approval at the Shareholders' Meeting.

The global economy continued to exhibit moderate but stable growth during 2024, even though future prospects remain clouded by uncertainty caused, not least, by persistent geopolitical tensions in various strategic areas.

On the one hand, geopolitical tensions are fueling doubts about the health of trading conditions, with the risk of heightened protectionist policies in certain countries. On the other, the outcome of political elections in the final quarter might alter current equilibriums, leading to new inflationary pressures and, in response, restrictive monetary policies intended to contain price increases.

Additionally, given persistent troubles in the principal conflict zones, the re-routing of global trade

could have a significant impact, with higher shipping costs and extended delivery lead times.

In this context of profound uncertainty, governments have had to face higher costs given their need to roll-over public debt at increased interest rates, multinational enterprises have slowed the implementation of their long-term investment projects, and private consumers are lowering their propensity to borrow in view of the high rates offered.

The macroeconomic indicators available for the leading economies indicate:

• in the Euro area, continuation of the policy to support the economy by lowering reference interest rates (2.9% at the end of December 2024). Given ECB forecasts, overall inflation is expected to come in at 2.1% in 2025, 1.9% in 2026 and 2.1% in 2027, when the expanded EU emissions trading system (EU ETS II) is due to come into force. Growth prospects appear to be stable across the entire area, given sound conditions in the jobs market and lower prices. Furthermore, investment financed by the Next Generation EU program is expected to stimulate economic activity there;

• in the United States, contained annual GDP growth, albeit mitigated by the relaxation of monetary policy, resulting in forecast economic growth of 1.6% in 2025.

• in China, a slowdown in growth to 4.5% in 2025, with the effects of additional monetary policy stimulus offset by weak consumer demand and a major correction in the real estate market, which is currently in crisis.

  Projections indicate that the growth in global GDP will stabilize at 3.2% in 2025, accompanied by further deflation, an improvement in real incomes, and less restrictive monetary policies in many economies, which will help to support demand.

  Overall inflation in the OECD countries should ease gradually to 3.4% in 2025, edging closer in the leading economies to the objectives set by their central banks.

  In this context, with major ongoing disruptions and uncertainties, the Interpump Group continued to generate results in 2024 that, although down with respect to those achieved in 2023, remain significantly positive in terms of revenues, margins and cash generation.

  The limited exposure of the Interpump Group in countries involved in the military conflict in Ukraine is confirmed. Specifically, the Interpump Group invoiced € 17 million to customers in Russia, Belarus and Ukraine during 2024 (€ 21.7m in 2023), with outstanding receivables of € 2.7 million (€ 2.3 million at 31 December 2023).

  Revenues of € 2,078 million were 7.2% lower than in 2023, when they totaled € 2,240 million. Analysis by business sector shows that revenues in the Hydraulic Sector were 13.9% lower than in 2023, while those in the Water-Jetting Sector were 10.8% higher.

  EBITDA was € 456.6 million (22.0% of revenues). In 2023, EBITDA was € 536.7 million (24.0% of revenues).

  Notably, the 2023 income statement benefited from non-recurring insurance proceeds of € 9 million.

  Excluding this effect, 2024 EBITDA was 13.5% lower than the adjusted amount for the previous year.

  Net profit totaled € 228.5 million in 2024 (€ 277.5 million in 2023), reflecting a decline of 17.7%.

  Despite pursuing a major investment plan, the Group generated free cash flow of € 205.1 million in 2024 (€ 147.9 million in 2023). The net financial position at 31 December 2024 amounted to € 409.0 million (€ 486.5 million at 31 December 2023), primarily after paying dividends of € 34.9 million and making net investments of € 92.1 million to acquire equity investments and residual minority interests.

  As indicated in the section dedicated to "Events occurring after the close of the financial year" in the report on operations accompanying the Annual Financial Report for 2023, on 31 January 2024 Interpump Group announced the signature of an agreement with PGIM Inc. for a Note Purchase and Private Shelf Agreement ("Shelf Facility") amounting to US$ 300 million, and the simultaneous issue, in the form of a US Private Placement, of initial bonds backed by the above facility totaling € 100 million.

  In particular, the Shelf Facility agreement grants the Group the right, but not the obligation, to issue bonds totaling a maximum of US$ 300 million over the next 3 years, on the same contractual conditions as those negotiated initially, with pricing to be determined at the time of each drawdown and a maximum duration of 20 years.

  At the same time, senior unsecured bonds totaling € 100 million were issued in a single tranche, with maturity in 10 years (January 2034), an average duration from issue of 8 years, and paying a fixed coupon of 4.17% every semester. These bonds, placed with funds managed by Pricoa Private Capital -the private capital division of PGIM Inc, which is the global investment manager of Prudential Financial Inc., a US insurance company - pay a six-monthly coupon at a fixed rate, do not have a rating and will not be listed in regulated markets.

  The treasury share purchase program was completed on 18 October 2024. Announced to the market on 27 September 2024, following authorization at the Shareholders' Meeting held on 26 April 2024, this program resulted in the purchase of 250,000 treasury shares (including 39,000 shares purchased in Q3 2024) at an average price of € 41.3496 each, with a total outlay of € 10,337 thousand. The dual purpose of this program was to guarantee not only implementation of the share-based incentive plans arranged in favor of the directors, employees and key collaborators of the Group, but also the disposal and/or exchange of treasury shares, in the context of acquisitions and/or agreements with strategic partners that support the development of the Group.

  On 21 November 2024, the Group announced the signature of a Corporate Power Purchase Agreement2 with Statkraft Markets GmbH, for the supply over ten years of energy generated 100% from renewable sources. As a consequence, commencing from January 2025, the Group will purchase 20 GWh of electricity every year, at a predetermined price fixed for the entire duration of the agreement. The energy will be produced in Italy, principally by a photovoltaic plant recently installed in Lazio: this volume will contribute significantly to meeting the energy needs of 5 of the Group's principal Italian subsidiaries3. . This agreement represents a major step towards achievement of the objectives to reduce carbon intensity by 30% and increase the use of renewable energy sources to 25% of the Group's total requirement by 20254.

  ‌2Contract for the purchase/sale of energy between a producer and a purchaser.

  ‌3See the "Corporate Power Purchase Agreement" presentation on the Group's corporate website for further information.

  ‌4Respectively actions E.2 and E.3 in the ESG Plan for 2023-25.

  Compared with 2023, the consolidation perimeter of the Water-Jetting sector changed as follows in 2024:

• on 9 April 2024 the Interpump Group announced the acquisition, via Inoxpa S.A.U., of a 60%5 equity interest in Process Partner China Co., Ltd. (now Shanghai PuPeng Flow Technology Co., Ltd) and an increase to 60% in its investment in YRP (Shanghai) Flow Technology Co., Ltd. (now Inoxpa China Flow Technology Co., Ltd), both businesses operating in China. Inoxpa China Flow Technology Co., Ltd was founded in 2015 and specializes in the production and sale of plant and complete solutions for the food processing industry, especially dairy. With support from the Inoxpa Group, Shanghai PuPeng Flow Technology Co., Ltd was formed in 2016 to distribute components, valves, pumps and actuators in China, as the exclusive distributor for the Inoxpa Group in the region. Together, the two businesses generated revenues of almost € 11 million in 2023, with an EBITDA margin of about 10%. On the one hand, the Group enters the Chinese plant engineering market via these transactions while, on the other, it expands the opportunities for further market penetration since, following many years of mutual collaboration, the local management team has accumulated comprehensive knowledge of the products concerned. The current shareholders will remain involved in the activities of the acquired companies. The total price paid for the two businesses was € 2.9 million. Both companies have been consolidated on a line-by-line basis from 31 March 2024 and, therefore, have contributed to the consolidated results at 31 December 2024 for nine months.

• On 3 June 2024 the Interpump Group announced the acquisition of 100% of the capital of Alfa Valvole S.r.l. from IDEX Corporation, a US company. This international player is positioned in the high-end segment of the valves sector, given the quality and services offered to customers. The company absorbed OBL, a specialist in the design and production of volumetric pumps, in 2021 to become a provider of integrated solutions for the movement and management of industrial fluids. The principal reference markets comprise water treatment, mining, Oil&Gas, maritime and rail transportation, food processing and pharmaceuticals. In 2023, the company generated turnover of about € 28 million, with an EBITDA margin of about 26%. The total price agreed for the transaction was € 55.2 million. The company has been consolidated on a line-by-line basis from 31 May 2024 and, therefore, has contributed to the consolidated results at 31 December 2024 for seven months.

• The Group acquired an additional 8% of SIT S.p.A. during Q1 2024 and now holds an 88%

  interest in that company.

• Lastly, during Q3 2024 the Group acquired an additional 16.71% of Inoxpa Colombia SAS and now holds the entire equity interest in that company.

  Compared with 2023, the consolidation perimeter of the Hydraulic sector changed as follows in 2024:

• on 22 April 2024, the Interpump Group announced the acquisition, through Interpump Hydraulics Ltd., of the entire share capital of Alltube Engineering Ltd., a British operator in the hydraulic hoses and fittings sector. Founded in 1986 and backed by decades of design and manufacturing experience, this company specializes in the processing of rigid and flexible hydraulic hoses. The services offered by Alltube include bending, welding, brazing, ring rolling, tube forming, flushing, pressure testing and swaging. In the previous year6, the company

  ‌5Through Inoxpa SAU, the Group already held 10% of YRP (Shanghai) Flow Technology Co.

  ‌6Financial year from 1 November 2022 to 31 October 2023

  generated revenues of about € 5 million, with an EBITDA margin of about 15%. The total consideration paid for the transaction was € 2.3 million. Via Alltube, the Group establishes an important presence for the development of the UK market. The company has been consolidated on a line-by-line basis from 30 April 2024 and, therefore, has contributed to the consolidated results at 31 December for eight months.

• On 11 July 2024, Interpump Group indirectly acquired 100% of H.S. S.r.l. via Inoxihp S.r.l., a subsidiary. This company, active in the hydraulic sector, specializes in the design and production of hydraulic systems and circuits known for their high qualitative and manufacturing standards. In 2023, the company generated turnover of about € 4 million. The total price agreed for the transaction was € 0.1 million. The company has been consolidated on a line-by-line basis from 30 June 2024 and, therefore, has contributed to the consolidated results at 31 December for six months.

• Reggiana Riduttori (Suzhou) Co. Ltd and Transtecno USA LLC were liquidated during Q1 2024;

• Put options for the remaining 20% interests in Transtecno S.r.l. and Draintech S.r.l. were exercised during Q2 2024, raising Group ownership of both companies from 80% to 100%.

• Draintech S.r.l. was absorbed by Transtecno S.r.l. during Q3 2024, with retroactive effect from

  1 January 2024.

• On 24 October 2024, the Interpump Group announced the signing of a binding agreement to purchase, via IPH Brasil, 59% of the capital of Hidrover Equipamentos Hidráulicos Ltda, which operates in the hydraulic cylinders sector. The purchase contract was signed on 2 December 2024. This company specializes in the production of hydraulic cylinders, covering the entire production process and focusing on the construction and agricultural markets. Hidrover expects to close 2024 with revenues of about € 23 million, an EBITDA margin of around 26%, and cash of approximately € 3 million7. The Group's entry into the cylinder sector dates back to 2008 with the acquisitions of Contarini, Modenflex, Cover, Panni Oleodinamica and HS Penta, all operating, albeit with different specializations, in the field of hydraulic cylinders and related components; in 2019, a further major step in development was taken with the acquisition of the Canadian company Hydra Dyne Tech. The consideration for the transaction was approximately € 17.5 million and a decision on the "put&call" mechanisms was made whereby Interpump Group can acquire the residual equity interest. The company has been consolidated on a line-by-line basis from 1 December 2024 and, therefore, has contributed to the consolidated results at 31 December 2024 for one month.

• Lastly, Walvoil Fluid Power Mexico was formed in Q4 2024 and has been consolidated using

the equity method from December 2024.

‌7Exchange rate at 30 September R$/€6.0504. The cash balance relates to the position at 30 September 2024.

Countries in which the Interpump Group is present

Key

Distribution and commercial support G Production

Canada

0 Hydra Dyne Tech Reggiana Riduttori Walvoil

Nexico

Inoxpa Transtecno

Brazil

@' Hid rover Equip Hidraulicos

0 Interpump Hydraulics

Colombia

Inoxpa

UAE

Interpump Hydraulic s

Singapore

GS Hydro

South Korea

GS Hydro

fl Walvoil

Honk Kong

GS Hydro

Australia

GS Hydro Chile

Interpump Hydraulics

Hammelmann MegaPaciñc Reggiana Riduttori Walvoil

South Africa

[nterpump Hydraulics

Inoxpa

India

G Interpump Hydraulic s

0 Walvoil O Inoxpa

Riduttori

New Zealand

0 Waikato F1ega Pacific

Countries in which the Interpump Group is present

- Europe Focus

Key

G Distribution and commercial support G Production

Germany

G Hammelmann G GS Hydro

0 IMM

G Reggiana Riduttori G White Drive

Sweden

0 GS Hydro

Austria

0 GS Hydro

Ireland

0 Waikato

United Kingdom

G GS Hydro O Inoxpa

Poland

0 GS Hydro

G White Drive

M Inoxpa

The Netherlands

0 GS Hydro

G N LB

G Waikato

Spain

G GS Hydro

G Hammelmann @ Transtecno

G Inoxpa

G Transtecno

G Reggiana Riduttori

Switzerland

0 Hammelmann

Italy

Romania

G IMM

Bulgaria

G Gruppo Contarini

Group structure - Summary

*" INTERPUMP

< GROUP

Oil

Sector

Gruppo Hammelmann

Gruppo Inoxpa Gruppo Waikato Alfa Valvole General Pump

H.S.

Inoxihp

NLB Corporation

Pioli

Servizi Industriali

Sit

Gruppo Contarini Gruppo GS Hydro Gruppo I SIM

Gruppo Interpump Hydraulics

Gruppo Reggiana Gruppo Transtecno Gruppo Wafvoil Gruppo White Drive Eurofluid Hydraulic

Hidrover Equip Hidraulicos

Hydra Dyne Technology Muncie Power Products oleodinamica Panni Tekno Tubi

Tubiflex

WATER-JETTING

HYDRAULICS

g g Servizi Industriali Srl (80%) Pioli Srl

Sit SpA (B8%)

- 1. MEC. Srl (70%)

Alfa Valvole Sri

@ GP Companies (China) Inc.

Hammelmann Australia Pty Ltd

Oleodinamica Panni Sri b b Hydroven Srl

Hydrocar Chile S.A. (90%)

- Wuxi Interpump Weifu Hydr. Company Ltd (65%) Interpump Hydraulics India Ltd

Interpump Hydraulics Middle East FZE

Interpump Hydraulics France 5arI (99,77%) lnterpump South Africa Pty Ltd

Interpump Hydraulics RUS

I I @ Interpump Hydraulics Peru Sac (90K)

- Hidrover Equipmentos Hidraulicos Ltda (59%) Eurofluid Hydraulic S.r.I. (80%)

-I I Tubiflex SpA

(35% restante detenuta da Interpump Hydraulics SpA)

, | d Power Korea Liz

Walvoil Fluid Power (India) Pvt. Ltd (99,97%)

(0,039£ restante detenuto da Interpump Hydraulics India Ltd)

• Walvoil Fluid Power France Sarl Walvoil Fluid Power Australasia

  I'+I Walvoil Canada Inc.

• Walvoil Fluid Power (Dongguan) Co. Ltd

• i-i e waivoil Fluid Power Mexico S.A. de C.V.

White Drive Motors and Steering Sp. ZOO W White Drive Motors and Steering LLC

@ White Drive Motors and Steering GmbH

Hammelmann Pumps Systems Co. Ltd (90%)

- Hammelmann S.L. Hammelmann France SARL Hammelmann Swiss GmbH

@ Hammelmann Vostok (99.9P»)

(0,196 restante detenuto da Interpump Hydraulics RUS)

GS-Hydro Piping Systems (Shanghai) Co. Ltd.

- Inoxpa India Private Inoxpa Solutions France

Improved Solutions Portugal Unipessoa I Lda

Annual Financial Report at 31-12-2024 - Interpump Group

(14,99%

I b Unidré Contarini Sas

• Copa Hydrosistem Ood

  Mega Pacific Pty Ltd

• Mega Pacific NZ Pty Ltd

• @ IMM Hydraulics Ltd

• @ Br"istol Hose Ltd

• @ Alltube Engineering Ltd

IPG Mouldtech India PVT LTD (8596)

Interpump Fluid Solutions Germany GmbH FGA Srl

IMM Hydro Est IFS France Sarl

- Tekno Tubi Srl

Innovativ Gummi Tech Sri

GS-Hydro AB

- § GS-Hydro Denmark AS GS-Hydro UK Ltd

GS Hydro System GmbH GS-Hydro Sp ZOO

GS-Hydro Austria GmbH

Suministros Franquesa S.A. GS-Hydro Benelux B.V.

GS-Hydro Korea Ltd.

, GS-Hydro Singapore Pte Ltd. GS-Hydro do Brasil S.H. Ltda

Inoxpa (UK) Ltd

- Inoxpa Solutions Moldova (66,67%) Inoxpa Colombia SA5

Inoxpa Italia S.r.I.

§ Inoxpa Skandinavien A/S

Inoxpa South Africa Proprietary Ltd

Inoxpa Special Processing Equipment Co. Ltd Inoxpa China Flow Technology Co., Ltd (60a») Shanghai PuPeng Flow Technology Co., Ltd (60%) Inoxpa Ukraine

Inoxpa USA Inc LTD In oxpa (70%)

• Inoxpa México (99%)

  (1% restante detenuto da Inoxpa Italia S.r.I.)

  - l*'I Hydra Dyne Technology Inc. (75,00K)

• Waikato Milking Systems LP

- @ WMS GP Limited

_ , . . Ltd Waikato Milking Systems Ireland Ltd @ Hi-Tech Enviro Solution Ltd

Waikato Milking Systems USA LLC

Transtecno Aandrijftechniek BV (51st) Transtecno Iberica (70,0K)

• • MA Transtecno SAPI de C.V. (70,0K) Hangzhou Interpump Power Transmissions

  As at 31/12/2024 therw ed

  @ RR India Pvt. Ltd. (99,99%) RR Pacific PTY Ltd.

  RR Slovakia A.S.

• I 'I RR Canada Inc.

• RR Holland BV

• RR France Sarl (95%)

• Interpump Antriebstechnik GmbH

  ‌ALTERNATE PERFORMANCE MEASURES

  The Group uses several alternate performance measures that are not identified as accounting parameters in the IFRS issued by the International Accounting Standards Board and adopted by the European Union, in order to allow better evaluation of the trend of economic operations and the Group's financial position. Such indicators are also tools that assist the directors in identifying operating trends and in making decisions on investments, resource allocation and other business matters. Therefore, the measurement criterion applied by the Group may differ from the criteria adopted by other groups and hence may not be comparable with them. Such alternate performance indicators are based exclusively on historical Group data and measured in conformity with the Guidelines on Alternative Performance Measures issued by ESMA/2015/1415 and adopted by Consob with communication no. 92543 of 3 December 2015. These indicators refer only to performance in the accounting period illustrated in this Report on Operations and the comparative periods and not to expected performance, and must not be taken to replace the indicators required by the IFRS issued by the International Accounting Standards Board and adopted by the European Union. Finally, the alternate measures are processed consistently and with uniformity of definition and representation for all periods for which financial information is included in this Annual Financial Report.

  The performance indicators used by the Group are defined as follows:

  • Earnings/(Losses) before interest and tax (EBIT): Revenues plus Other operating income less Operating costs (Cost of sales, Distribution costs, General and administrative expenses, and Other operating costs);

  • Earnings/(Losses) before interest, tax, depreciation and amortization (EBITDA): EBIT plus depreciation, amortization, writedowns and provisions;

  • Net financial position: the sum of Financial debts and Bank debts less Cash and cash

    equivalents;

  • Net indebtedness: the sum of the Net financial position and debts for the acquisition of equity

    investments;

  • Capital expenditure (CAPEX): the sum of investments in tangible and intangible fixed assets,

    net of divestments;

  • Free cash flow: the cash flow available for the Group, defined as the difference between the cash flow from operating activities and the cash flow for investments in tangible and intangible fixed assets;

  • Capital employed: calculated as the sum of shareholders' equity and net financial position, including debts for the acquisition of equity investments;

  • Return on capital employed (ROCE): EBIT / Capital employed;

  • Return on equity (ROE): Net profit / Shareholders' equity.

The Group's income statement is prepared by functional area (also called the "cost of sales" method). This format is deemed to be more representative than its "type of expense" counterpart, which is nevertheless included in the notes to the Annual Financial Report. The chosen form, in fact, complies with the internal reporting and business management methods.

The cash flow statement was prepared using the indirect method.

1. ‌REVENUES

   Revenues totaled € 2,078.4 million in 2024, down by 7.2% compared with € 2,240.0 million in 2023 (-9.2% at constant perimeter and -9.0% also net of exchange differences).

   Revenues by business sector and geographical area were as follows:

   €/000	Italy	Europe (Italy excluded)	North America	Far East and Pacific Area	Rest of the World	Total
   2024
   Hydraulic	241,247	488,258	388,496	146,907	142,586	1,407,494
   Water-Jetting	69,206	231,800	187,580	114,402	67,917	670,905
   Total	310,453	720,058	576,076	261,309	210,503	2,078,399
   2023
   Hydraulic	297,482	591,997	439,806	160,443	144,595	1,634,323
   Water-Jetting	66,252	212,892	187,162	78,203	61,207	605,716
   Total	363,734	804,889	626,968	238,646	205,802	2,240,039
   2024/2023 percentage changes
   Hydraulic	-18.9%	-17.5%	-11.7%	-8.4%	-1.4%	-13.9%
   Water-Jetting	+4.5%	+8.9%	+0.2%	+46.3%	+11.0%	+10.8%
   Total	-14.6%	-10.5%	-8.1%	+9.5%	+2.3%	-7.2%
   2024/2023 at constant perimeter (%)
   Hydraulic	-19.5%	-17.6%	-11.7%	-8.4%	-2.7%	-14.1%
   Water-Jetting Total	-16.7% -19.0%	+6.3% -11.3%	-1.2% -8.6%	+27.7% +3.4%	+7.6% +0.3%	+4.3% -9.2%

   
   
   
2. ‌PROFITABILITY

The cost of sales accounted for 65.7% of revenues (65.2% in 2023). Production costs represented 26.8% of revenues (26.3% in 2023) and totaled € 556.4 million (€ 588.2 million in 2023, which however did not include the costs of IPG Mouldtech India Pvt Ltd for 3 months, those of I.mec S.r.l. and the Waikato group for 5 months, or those of the companies acquired during 2024). The purchase cost of raw materials and components sourced on the market, including changes in inventories, accounted for 38.9% of revenues (38.9% in 2023) and totaled € 808.3 million (€ 871.8 million in 2023, which however did not include the costs of IPG Mouldtech India Pvt Ltd for 3 months, those of I.mec S.r.l. and the Waikato group for 5 months, or those of the companies acquired during 2024).

At constant perimeter, distribution expenses were 0.6% lower than in 2023, with a percentage incidence on revenues of 8.3% (7.6% in 2023).

Also at constant perimeter, general and administrative expenses rose by 2.8% with respect to 2023,

with a percentage incidence on revenues of 10.8% (9.6% in 2023).

Payroll costs totaled € 469.7 million (€ 464.0 million in 2023, which however did not include the costs of IPG Mouldtech India Pvt Ltd for 3 months, those of I.mec S.r.l. and the Waikato group for 5 months, or those of the companies acquired during 2024). At constant perimeter, payroll costs amounted to €

460.2 million, down by 0.8% due to a 0.7% rise in per capita cost and a decrease in the average

headcount by 140 employees.

The total number of Group employees in 2024 averaged 9,310 (9,185 at constant perimeter) compared to 9,325 in 2023. The decrease in overall average headcount by 15 breaks down as follows: plus 26 in Europe, minus 121 in North America, and plus 80 in the Rest of the World.

In addition, the Group employed 1,534 temporary workers during the year (1,741 in 2023) at a cost of

€ 28.8 million (€ 39.3 million in 2023).

EBITDA totaled € 456.6 million (22.0% of revenues) compared to € 536.7 million in 2023, which

represented 24.0% of revenues.

The following table sets out EBITDA by business sector:

* = Total revenues include those to other Group companies in the other sector, while the revenues analyzed previously are exclusively those external to the Group (see Note 4 in the explanatory notes). Accordingly, for consistency, the percentage is calculated on total revenues rather than on those reported previously.

As stated earlier, 2023 benefited from non-recurring insurance proceeds of € 9 million attributable entirely to the Hydraulic sector. Excluding this amount, total EBITDA would have been 13.5% lower, while that of the Hydraulic sector would have been 22.3% lower.

EBIT amounted to € 337.8 million (16.3% of revenues) compared with € 428.8 million in 2023 (19.1% of revenues), down by 21.2%.

The effective tax rate for the year was 26.5% (26.5% in 2023), which however benefited from the reversal of earlier tax provisions, € 6.1 million, after receiving a favorable response from the Tax Authorities to a question posed by the Parent Company, as described in the Report on Operations in Q3 2023. Net of that amount, the tax rate in 2023 would have been 28.2%.

Net profit for 2024 was € 228.5 million (€ 277.5 million in 2023). Basic earnings per share were € 2.124 (€ 2.565 in 2023).

Capital employed increased from € 2,370.6 million at 31 December 2023 to € 2,495.5 million at 31 December 2024, reflecting continuation of the investment programs and the acquisitions completed during the year.

ROCE was 13.5% (18.1% in 2023). ROE was 11.3% (15.4% in 2023).

The change in net financial position breaks down as follows:

Net liquidity generated by operating activities totaled € 307.2 million (€ 372.2 million in 2023). Free cash flow increased markedly to € 205.1 million (€ 147.9 million in 2023), up 38.7%, despite ongoing major planned investments and assisted by the reduction in working capital absorption.

Net indebtedness, including payables and commitments, determined in accordance with ESMA

guidance 32-382-1138 and included in Consob notice no. 5/21, comprises:

The Net indebtedness/EBITDA ratio of 1.04 is lower than last year (1.06). There were no outstanding

hedge contracts at 31 December 2024.

Capital employed increased from € 2,370.6 million at 31 December 2023 to € 2,495.5 million at 31 December 202, principally due to new investments, consolidation of the new companies acquired and the increase in working capital. ROCE was 13.5% (18.1% in 2023). ROE was 11.3% (15.4% in 2023).

The following statement of financial position is classified in terms of the sources and applications of funds: