Seri Industrial S.p.a.MIL: SERI

Board of directors approves results as of june 2024

Oct 1, 2024 at 4:35 PM UTC · Issued by SERI Industrial S.p.A.

MUNICATOTAMPA

PRESS RELEASE

SERI INDUSTRIAL S.p.A.

BOARD OF DIRECTORS APPROVES RESULTS AS OF JUNE 2024

REVENUES EQUAL TO EURO 94,244 THOUSAND COMPARED TO EURO 93,619 THOUSAND AS OF JUNE 30, 2023
ADJUSTED GROSS OPERATING INCOME EQUAL TO EURO 9,225 THOUSAND (+ EURO 2,081 THOUSAND COMPARED TO JUNE 30, 2023)
ADJUSTED NET FINANCIAL POSITION OF EURO 54,191 THOUSAND (+ EURO 20,385 THOUSAND)
INVESTMENT ACTIVITIES AMOUNTING EQUAL TO EURO 20,241 THOUSAND

S. Potito Sannitico, 30 September 2024 - The Board of Directors of SERI Industrial S.p.A. (the 'Company', together with its subsidiaries, the 'Group') has examined and approved the consolidated half-yearfinancial statements as of June 30, 2024.

Below, the main figures of the Group's consolidated half-year financial statements as of June 30.2024 are. It should be noted that the income statement figures for the first half of 2023 have been restated, for comparative purposes only, to take into account the classification under "Net result from discontinued operations" of the results pertaining to the assets held in Asia, as required by IFRS 5 for their classification as "discontinued operations" have been met.

Consolidated Financial Statements Highlights

Economic results

Euro / 000	30/06/2024	30/06/2023	Variation	Change %
Revenues, income and internal works	94,244	93,619	625	1%
Gross Operating Income - EBITDA	9,433	6,845	2,588	38%
Adjusted Gross Operating Income - Adjusted EBITDA	9,225	7,144	2,081	29%
Depreciation and amortisation	14,434	12,034	2,400	20%
Write-downs/write-backs	134	1,253	(1,119)	(89%)
Net Operating Income (Loss) - EBIT	(5,135)	(6,442)	1,307	(20%)
Adjusted Net Operating Income - adjusted EBIT	(5,343)	(5,883)	540	(9%)
Consolidated Profit (Loss)	(6,064)	(7,042)	978	(14%)
Adjusted consolidated profit (Loss)	(5,551)	(6,335)	784	(12%)
Investment activities		20,241	7,052	13,189	>100%
Balance Sheet Data

Euro / 000		30/06/2024	31/12/2023	Variation	Change %
Net invested capital		208,715	197,167	11,548	6%
Equity		124,439	130,337	(5,898)	(5%)
Net Financial Position		84,276	66,830	17,446	26%
Adjusted Net Financial Position		54,191	33,806	20,385	60%
	Personnel
Number			Variation	Change %
	30/06/2024	31/12/2023
FIB - Batteries		423	381	42	11%
Seri Plast - Plastic Materials		283	295	(12)	(4%)
Corporate and other activities		57	58	(1)	(2%)
Group		763	734	29	4%

Revenues from contract with customers as of June 30, 2024 amounted to euro 76,558 thousand, down by 8% compared to the previous period, while Revenues, income and internal work, equal to euro 94,244 thousand, were substantially in line with the previous period (+ euro 625 thousand compared to the figure as of 30 June 2023).

Overall, Revenues from customers were negatively impacted by the reduction in average selling prices in the traditional businesses of Plastic Materials and Lead-Acid Batteries, as a result of the reduction in raw materials and energy costs after the market shock due to the war in Ukraine. This impact is only partially offset by the increase in sales volumes and turnover, despite lower average sales prices, in the Lead-acid Batteries for Starter, Traction and Stationary segments and in the Pipes&Fittings segment.

In terms of profitability, the adjusted EBITDA as of June 30, 2024 amounted to euro 9,225 thousand, with an adjusted EBITDA margin (adjusted EBITDA/adjusted revenues from customers) of 12% (compared to 8.6% recorded as of June 30, 2023).

The Group has registered an adjusted consolidated loss of euro 5,551 thousand, after amortisation, depreciation and write-downs of euro 14,568 thousand, of which euro 8,408 thousand related to investments made and ongoing, Teverola 1 and Teverola 2, and financial expenses of euro 5,095 thousand, euro 858 thousand more compared to June 30, 2023, due to the significant increase in interest rates. The negative result of financial management, equal to euro 3,933 thousand (compared to euro 2,517 thousand as of June 30, 2023), is mitigated by financial income, due to interest income recognised on cash and cash equivalents, equal to euro 745 thousand.

Adjusted net financial Position was euro 54,191 thousand, compared to euro 33,806 thousand as of December 31 2023, after incurring capital expenditure of euro 20,241 thousand, of which euro 9,231 thousand related to the Teverola 2 - IPCEI project. For this project, as of June 30, 2024, a receivable for grants from the Ministry of Enterprise and Made in Italy ('MIMIT') equal to euro 38,113 thousand was recognised. Net invested capital as of June 30, 2024 was euro 208,715 thousand, up by euro 11,548 thousand from December 31, 2023, and included euro 83,409 thousand related to the advance on grants for the IPCEI project. Not considering this advance payment, net invested capital would amount to euro 125,306 thousand (euro 11,548 thousand more compared to the same figure as of December 31, 2023).

With reference to the Batteries sector, during the first half of 2024, the technical team dedicated to process engineering and research and development applied to production at the Teverola site was further strengthened. As of today, about 60 resources have been employed, more than 40 of which are world-class professionals.

Ongoing projects

The Teverola plant is, at present, fully operational and the issues related to its operation have been overcome. In the first half of 2024, revenues from the sale of lithium batteries has been, however, lower than expected, as difficulties were encountered in the domestic storage market as a result of both the very aggressive commercial proposals of Chinese competitors, due to the reduction in their domestic demand, and a phase of contraction in the Italian market resulting from the speculative bubble of the Superbonus 110 contributions for energy efficiency. Currently, the battery inverter system commercialized by FIB is not competitive with respect to Chinese suppliers due to the excessive price of the inverter. The Group is evaluating whether to confirm the customers' purchase proposals to achieve the turnover forecast, despite lower margins. FIB is also focused on the production of larger storage systems (C&I - Commercial and Industrial applications), with more competitive inverters and with prices aligned to the market. This represents the main product line planned for the medium to long term development.

With regard to Teverola 2 project, it should be noted that on May 8, 2024, the MIMIT directorial decree was issued, with which the resources of the IPCEI Fund, activated by Ministerial Decree of 11 December 2023, were allocated to integrate the subsidised interventions for the beneficiary companies and research organisations. In particular, for IPCEI Batteries 1, which is of interest to the Group, resources amounting to euro 100,784,470.65 has been integrated. With this decree, the investment program, as already envisaged, is 100% financed. In the first half of 2024, the project-related expenditure amounted to EUR 11,513,000, which is in addition to the expenditure of previous years amounting to euro 23,922,000. The total project expenditure as of today is euro 35,435 thousand. The revolving line for the advance payment of grants and the signing of machinery supply contracts is being finalised. The technology chosen for Teverola 2 is the LFP technology (in line with Teverola 1) with prismatic format in three different configurations depending on the market (ESS - Storage utility scale, ESS - Commercial&Industrial, ESS-domestic, Motive Power, Electric Mobility for public transport and commercial vehicles).

With regard to the P2P project, which plans the construction of a new production unit in Pozzilli (Isernia, Molise) for the recovery of mixed plastic material from post-consumer waste, following the preliminary investigation by Invitalia, the project was re-proposed to the Ministry of Made in Italy and Invitalia itself within the framework of the Development Contract for environmental protection. The project envisages a total investment of approximately euro 109 million, which is estimated to be covered by subsidies granted by MIMIT, amounting to approximately euro 82 million, between non-repayable contributions and subsidised financing.

Is currently ongoing the preliminary investigation by Invitalia for the subsequent issuance of the relevant decree granting the subsidies.

Economic and financial results review

Consolidated economic trend

As follows, the Group's reported and adjusted economic situation as of June 30, 2024, compared to the situation as of

30th of June of the previous year:

Euro / 000	30/06/2024	Special	30/06/2024		30/06/2023	Special	30/06/2023
	items	Adjusted	items	Adjusted

Revenues from contract with	76,558		76,558		82,786		82,786
customers

Other operating income	8,679	(646)	8,034		6,017		6,017
Internal works	9,007		9,007		4,816		4,816
Revenues	94,244	(646)	93,599		93,619	-	93,619
Purchase of material	49,828		49,828		56,512		56,512
Change in inventories	(2,633)		(2,633)		(9,584)		(9,584)
Services expense	19,124	(39)	19,085		22,980		22,980
Other operating costs	1,214	(182)	1,032		1,089	(61)	1,028
Personnel costs	17,278	(216)	17,062		15,777	(238)	15,539
Operating Costs	84,811	(437)	84,374		86,774	(299)	86,475
Gross operating Income - EBITDA	9,433	(208)	9,225		6,845	299	7,144
Depreciation and amortisation	14,434		14,434		12,034		12,034
Write-downs/write-backs	134		134		1,253	(260)	993
Net Operating Income (Loss)- EBIT	(5,135)	(208)	(5,343)		(6,442)	559	(5,883)
Financial income	1,162		1,162		1,720	(376)	1,344
Financial expense	5,095	(22)	5,073		4,237		4,237
Profit (Loss) before tax	(9,068)	(186)	(9,254)		(8,959)	183	(8,776)
Income taxes	(3,352)	(633)	(3,985)		(2,736)	(583)	(3,319)
Theoretical tax effect		(65)	(65)			59	59
Profit (loss) from continuing	(5,716)	513	(5,203)		(6,223)	707	(5,516)
operations

Profit (Loss) from discontinued	(348)		(348)		(819)		(819)
operations

Profit (Loss)	(6,064)	513	(5,551)		(7,042)	707	(6,335)

The assessment of the Group's economic performance is also carried out considering certain alternative performance indicators (Alternative Performance Measures, hereinafter also 'MAPs'), as provided by the European Securities and Markets Authority (ESMA) following the issuance of Consob Communication No. 92543/15 of December 3, 2015, which makes applicable the guidelines published on 5 October 2015 by ESMA regarding their presentation in the regulated information disseminated or in the prospectuses published as of July 3, 2016.

Management believes that MAPs allow for a better analysis of business performance, ensuring a clearer comparability of results over time, isolating non-recurring events, as well as making reporting consistent with forecast trends. These indicators are not to be considered as substitutes for conventional IFRS indicators. In fact, MAPs are not required by IFRS and, although they are derived from the Group's financial statements, they are not subject to audit. Therefore, MAPs must be read in conjunction with the Group's financial information processed in the consolidated financial statements.

In particular, the alternative performance indicators refer to the adjustment of key financial statement indicators from non-recurring and/or non-repeating items, the so-called special items1.

1 Income components are classified as special items when: (i) they are related to events or transactions that are not repeated frequently in the Group's recurring operations; (ii) they derive from transactions that are not representative of the Group's normal operations, such as extraordinary restructuring charges, environmental charges, charges related to the disposal and valuation of an asset, charges related to extraordinary transactions, even if they occurred in previous years or are likely to occur in subsequent years,

charges related to the start-up of new plants, etc. (iii) any capital gains or losses, write-downs or revaluations of investments and/or assets, value adjustments/reversals and depreciation related to extraordinary transactions.

Below is a description of the main alternative measures of performance:

- EBITDA (or Gross Operating Margin): this is an indicator of operating performance and is calculated by adding Depreciation and Amortisation and Impairment/Earnings to Operating Profit;

The impact of special items on Profit (Loss) before tax was negative euro 186 thousand, due to:

other operating income of non-recurring nature for euro 646 thousand attributable to contingent assets recognised at the start of the liquidation of the company F&F with the simultaneous exit of the former minority shareholder from the company;
non-recurringoperating costs for euro 437 thousand and non-recurring financial expenses for euro 22 thousand attributable to (i) charges incurred in relation to labour disputes of the subsidiary FIB for a total of

euro 296 thousand and (ii) charges recognised as part of a transaction for the purchase of the Gubbio plant for euro 163 thousand;

With reference to the tax area, the following should be noted:

adjustment made to the item Income taxes for euro 633 thousand attributable to the reversal of deferred tax assets recognised on revaluation asset balances, pursuant to the Decree of August 2020, art. 110;
theoretical tax effect of euro 65 thousand recognised in connection with the positive and negative income components described above of the operating and financial area.

- Adjusted EBITDA (or Adjusted Gross Operating Margin): represents an indicator of recurring operating performance and is calculated by adding EBITDA and special items, i.e., revenues and non- recurring or non-repetitive operating costs, to EBIT;

- Adjusted Operating Result (or adjusted EBIT): is calculated by summing Operating Result and special items, i.e., revenues, operating costs, depreciation and amortisation and non-recurring or non- repeating impairment losses/reversals of impairment losses;

Consolidated adjusted Profit (Loss): is calculated by adding the special items to Consolidated Profit (Loss);
Net financial debt or Net Financial Position: represents an indicator of the financial structure and is calculated in accordance with the provisions of Guideline No. 39 issued on 4 March 2021, applicable as of 5 May 2021 and in line with the attention call No. 5/21 issued by Consob on 29 April 2021;
Adjusted Net Financial Debt or Adjusted Net Financial Position: is calculated by deducting from Net Financial Debt (or Net Financial Position) the financial debt related to the application of IFRS 16;
Percentage Margin: is calculated as the ratio of EBITDA to Total Revenues, Income and Additions
Adjusted EBITDA margin: is calculated as the ratio of adjusted EBITDA to adjusted revenues from customers.

Consolidated Statement of Financial Position

Euro / 000	30/06/2024	31/12/2023	Variation	Change %

Net fixed assets:

Property, plant and equipment, intangible	133,451	127,921	5,530	4%
assets and rights of use

Goodwill	54,338	54,338	0	0%

Equity-accounted investments	667	666	1	0%

Other non-current assets/(liabilities)	(104,452)	(105,961)	1,509	(1%)

Total net fixed assets	84,004	76,964	7,040	9%

Net working capital

Trade receivables	27,284	35,316	(8,032)	(23%)

Inventories	81,065	74,357	6,708	9%

Trade payables	(45,972)	(40,338)	(5,634)	14%

Other current assets/(liabilities)	27,781	19,741	8,040	41%

Total net working capital	90,158	89,076	1,082	1%

Gross invested capital	174,162	166,040	8,122	5%


Provision for employee benefits	(4,089)	(4,183)	94	(2%)

Provisions for risks and charges	(881)	(1,160)	279	(24%)

Net deferred tax assets (liabilities)	36,362	32,880	3,482	11%

Tax payables	(2,164)	(2,147)	(17)	1%

Net assets (liabilities) held for sale*	5,325	5,737	(412)	(7%)

Net invested capital	208,715	197,167	11,548	6%

Equity	(124,439)	(130,337)	5,898	(5%)

Net Financial Position	(84,276)	(66,830)	(17,446)	26%


Coverage	(208,715)	(197,167)	(11,548)	6%

'Net assets (liabilities) held for sale' do not include (i) cash and cash equivalents in the amount of euro 339 thousand (euro 325 thousand as of 31 December 2023) and (ii) current financial payables in the amount of euro 1,286 thousand (euro 1,274 thousand as of 31 December 2023), as they are included in net debt.

Net invested capital as of June 30, 2024, was euro 208,715 thousand (compared to euro 197,167 thousand as of December 31, 2023) and was covered by consolidated shareholders' equity in the amount of euro 124,439 thousand and by net financial debt in the amount of euro 84,276 thousand (which increased by euro 17,446 thousand compared to the previous year).

Other current assets (liabilities) include (i) the receivable from MIMIT for €38,113 thousand related to costs incurred for the IPCEI project, of which €9,231 thousand related to investments made in the first half of 2024, and (ii) the current portion of the advance payment for grants received from the same Ministry for €7,623 thousand. The non-current portion of the advance payment for grants from MIMIT is included in Other non-current assets (liabilities), and is equal to €75,786 thousand. The increase in Inventories of euro 6,708 thousand is mainly attributable to the Teverola site.

As follows, a breakdown of the Net Invested Capital's by business unit:
		Plastic
Euro / 000	Batteries	Other	Corporate	Conso.	Consolidated
Mateials

Net fixed assets:
Property, plant and equipment, intangible assets rights of use	91,741	41,322	0	406	(18)	133,451
Goodwill	0	0	0	0	54,338	54,338
Equity-accounted investments	667	0	0	142,075	(142,074)	667
Other non-current assets/(liabilities)	(103,206)	(1,220)	0	1,225	(1,251)	(104,452)
Total net fixed assets	(10,798)	40,102	0	143,706	(89,005)	84,004
Net working capital
Trade receivables	13,894	13,477	807	6,181	(7,076)	27,284
Inventories	49,331	31,734	0	0	0	81,065
Trade payables	(26,523)	(24,652)	0	(1,841)	7,044	(45,972)
Other current assets/(liabilities)	21,283	4,753	(75)	1,810	10	27,781
Total net working capital	57,985	25,313	732	6,150	(22)	90,158
Gross invested capital	47,187	65,414	732	149,856	(89,027)	174,162

Provisions for employee benefits	(1,415)	(1,788)	0	(887)	0	(4,089)
Provisions for risks and charges	(499)	(96)	0	(285)	(1)	(881)
Net deferred tax assets (liabilities)	2,587	1,150	(5)	32,626	5	36,362
Tax payables	(1,097)	(863)	0	(199)	(5)	(2,164)
Net assets (liabilities) held for sale*	5,298	0	0	0	27	5,325
Net invested capital	52,061	63,816	727	181,112	(89,001)	208,715
Equity	(44,220)	(14,665)	(789)	(152,520)	87,755	(124,439)
Net financial Position	(7,841)	(49,152)	62	(28,591)	1,246	(84,276)

Coverage	(52,061)	(63,816)	(727)	(181,112)	89,001	(208,715)

'Net assets (liabilities) held for sale' do not include (i) cash and cash equivalents in the amount of euro 339 thousand (euro 325 thousand as of 31 December 2023) and (ii) current financial payables in the amount of euro 1,286 thousand (euro 1,274 thousand as of 31 December 2023), as they are included in net debt.

The table below shows is Group's balance sheet as of June 30, 2024, compared to the balance sheet at the end of the previous year:

Euro / 000	30/06/2024	31/12/2023	Variation	Change %
Current Assets	207,441	218,569	(11,128)	(5%)
Non-current Assets	226,828	217,851	8,977	4%
Assets classified as held for sale	6,028	6,535	(507)	(8%)
ASSETS	440,297	442,955	(2,658)	(1%)
Current liabilities	148,846	134,756	14,090	10%
Non-current liabilities	165,362	176,115	(10,753)	(6%)
Liabilities classified as held for sale	1,650	1,747	(97)	(6%)
Equity	124,439	130,337	(5,898)	(5%)
LIABILITIES AND EQUITY	440,297	442,955	(2,658)	(1%)

Current assets are equal to euro 207 million as of June 30, 2024 compared to euro 219 million of December 31, 2023, registering a decrease of euro 12 million. Non-current assets amounted to euro 227 million as of June 30, 2024, compared to euro 218 million of December 31, 2023, registering an increase of euro 9 million.

Current liabilities are equal to euro 149 million as of June 30, 2024, registering an increase of euro 14 million compared to December 31, 2023. Non-current liabilities are equal to euro 165 million as of June 30, 2024 compared to euro 176 million as of December 31, 2023, registering a decrease of euro 11 million.

The liquidity margin (calculated as the difference between current assets and current liabilities) was euro 58 million, with a current ratio of 1.39, demonstrating the Group's ability to generate liquidity and meet short-term commitments.

The Group decided to dispose of the battery production activity in the Asian region, carried out by the company YIBF, whose assets and liabilities amounted to euro 6 million and euro 2 million, respectively, as of June 30, 2024, substantially in line with 31st December 2023.

Equity is equal to Euro 124 million as of June 30, 2024, registering a decrease of Euro 6 million compared to Euro 130 million as of December 31,2023.

The Group's Adjusted Net Financial Position as of June 30, 2024, is shown in the table below, with short-term components shown separately from medium- to long-term components, compared with the same information as last published in the Annual Report as at 31 December 2023:

	NFP - NET FINANCIAL POSITION	30/06/2024	31/12/2023	Variation	Change %
A) Cash	37,119	64,777	(27,658)	(43%)
B)	Cash equivalents	1,704	1,089	615	56%
C)	Other current financial assets	513	517	(4)	(1%)

D)	Liquidity D = (A + B + C)	39,336	66,383	(27,047)	(41%)
	Current financial debt (including debt instruments,
E)	but excluding current portion of non-current	55,132	52,081	3,051	6%
	financial debt)
F)	Current part of non-current financial debt	13,824	17,355	(3,531)	(20%)

G)	Current financial indebtedness G = (E + F)	68,956	69,436	(480)		(1%)
H)	Net current financial indebtedness H = (G - D)	29,620	3,053	26,567		870%
I)	Non-current financial debt (excluding current	19,288	24,638	(5,350)		(22%)
portion and debt instruments)

J)	Debt instruments	4,000	4,000	0	100%
K)	Non-current trade and other payables	31,368	35,139	(3,771)		(11%)
L)	Non-current financial indebtedness L = (I + J + K)	54,656	63,777	(9,121)		(14%)
M)	Total financial indebtedness (H+L)	84,276	66,830	17,446		26%


N)	IFRS 16adjustment	30,085	33,024	(2,939)		(9%)
O)	Adjusted total financial indebtedness	54,191	33,806	20,385		60%

The net financial position includes financial balances related to net assets and liabilities held for sale of which (i) cash and cash equivalents in the amount of €339 thousand (€325 thousand as of 31 December 2023) and (ii) current financial liabilities in the amount of €1,286 thousand (€1,274 thousand as of 31 December 2023).

Cash and cash equivalents amounted to euro 37,119 thousand as of June 30, 2024.

The increase in the Group's financial indebtedness is mainly attributable to investment activity in the amount of euro 20,241 thousand (of which euro 9,231 thousand related to the IPCEI project and euro 5,880 thousand related to the purchase from third parties of factories at the Gubbio and Calitri production sites) and to the increase in inventories of finished products at Teverola 1.

The net financial position at the end of the period includes payables for leases and utilisation rights arising from the application of IFRS 16, equal to euro 30,085 thousand.

Business Units trend

As follows, the Company organisation chart together with an indication of the major activities for each business unit:

The company operates as a controlling holding company of two industrial companies, operating in two business lines (or "Sectors"):

"Plastic Materials", managed by the company Seri Plast S.p.A. ("Seri Plast"), active in the recycling and processing of plastic materials for the (i) battery market (production of special compounds and moulding of battery crates and lids); (ii) automotive (production of special compounds) and (iii) hydro-thermo-sanitary, civil and shipbuilding (production of special compounds, extrusion and moulding of pipes, fittings and special parts). In the near future, the Line of Business, through the P2P joint venture, will also be active in the processing of post-consumer packaging waste into raw materials for the consumer market;
"Batteries", managed by the company FIB S.p.A. ("Fib" or "FIB" or "Faam"), active, under the Faam brand, in
(i) the production of lithium battery cells, modules and systems for ESS (Energy Storage System), industrial and special applications; (ii) the production of lead batteries for industrial traction, start-up and storage applications; (iii) the recycling of batteries at the end of their life, from plant design to material recovery.
"Sustainable Mobility", managed by the company Industria Italiana Autobus S.p.A. ("IIA"), acquired on 11 July 2024, active under the Menarinibus brand, in the production of buses for urban public transport, with a particular focus on the transition to sustainable mobility through the production of electric buses. The new Line of Business will allow the Group to consolidate the direction taken on the main strategic actions to foster the ongoing energy transition and the challenges of climate change

The following tables summarise the economic results by sector as of June 30, 2024:

Economic information by sectors	Batteries	Plastic	Other	Corporate	Conso.	Consolidated
Materials	effects.

Revenues from contract with customers	28,081	49,240	0	2,454	(3,217)	76,558

Other operating income	7,728	938	338	49	(375)	8,679

Internal works	7,567	1,434	0	0	6	9,007

Total revenues, income and internal	43,376	51,613	338	2,503	(3,587)	94,244
works

Purchase of materials	25,509	25,088	0	9	(778)	49,828

Change in inventories	(5,910)	3,277	0	0	1	(2,633)

Services expense	7,889	12,669	0	1,351	(2,785)	19,124

Other operating costs	502	558	4	173	(22)	1,214

Personnel costs	8,600	6,899	0	1,724	55	17,278

Operating Costs	36,589	48,490	4	3,257	(3,529)	84,811

Gross operating income - EBITDA	6,787	3,122	334	(753)	(57)	9,433

Depreciation and amortisation	10,026	4,304	0	107	(3)	14,434

Write-downs/write-backs	83	49	0	(238)	240	134

Net operating income (loss) - EBIT	(3,321)	(1,231)	334	(622)	(295)	(5,135)

Financial income	240	176	0	778	(31)	1,162

Financial expense	2,013	2,116	0	998	(32)	5,095

Profit (Loss) before tax	(5,095)	(3,171)	334	(842)	(294)	(9,068)

Income taxes	106	548	93	(4,098)	(1)	(3,352)

Profit (loss) from continuing operations	(5,200)	(3,719)	241	3,256	(293)	(5,716)

Profit (Loss) from discontinued operations	(348)	0	0	0	0	(348)

Profit (Loss)	(5,549)	(3,719)	241	3,256	(293)	(6,064)

Profit (Loss) from discontinued operations amounting to a negative Euro 348 thousand refers to the subsidiary YIBF being discontinued.

Plastic materials

As follows, the economic performance of the Plastic Material sector as of June 30,2024 compared to the same period in the previous year:

Plastic Materials	30/06/2024	30/06/2023	Change	Change %

Revenues from contract with customers	49,240	56,487	(7,247)	(13%)

Other operating income	938	1,967	(1,029)	(52%)

Internal works	1,434	1,113	321	29%

Total revenues, income and internal works	51,613	59,566	(7,953)	(13%)

Purchase of materials	25,088	31,375	(6,287)	(20%)

Change in inventories	3,277	1,062	2,215	>100%

Services expense	12,669	15,703	(3,034)	(19%)

Other operating costs	558	446	112	25%

Personnel costs	6,899	7,122	(223)	(3%)

Operating Costs	48,490	55,708	(7,218)	(13%)

Gross operating income - EBITDA	3,122	3,858	(736)	(19%)

Depreciation and amortisation	4,304	4,066	238	6%

Write-downs/write-backs	49	755	(706)	(94%)

Net operating income (loss) - EBIT	(1,231)	(963)	(268)	28%

Financial income	176	450	(274)	(61%)

Financial expense	2,116	1,766	350	20%

Profit (Loss) before tax	(3,171)	(2,278)	(893)	39%

Income taxes	548	568	(20)	(3%)

Profit (Loss)	(3,719)	(2,846)	(873)	31%

Revenues from contract with customers decreased by 13% in the first half of 2024 compared to the previous comparative period, mainly due to the net effect of (i) a decrease in average sales prices in all business segments, due to the indexing of prices to raw material prices (ii) a decrease in volumes in the Battery Boxes and Lids business segment, due to the timing slippage of some orders, (iii) a slight increase in sales volumes in the Pipes&Fittings business segment. The PP compound business segment recorded a decrease compared to the previous comparison period, mainly due to the decrease in average selling prices.

In terms of profitability, EBITDA as of June 30, 2024 amounted to euro 3,122 thousand, with a percentage margin of 6.3% (6.8% as of June 30, 2023). Despite the lower average sales prices, the margin was substantially in line with the previous period, thanks to the positioning on highly profitable products and the lower incidence of energy costs. Operating profit was a negative euro 1,231 thousand, after depreciation, amortisation and write-downs of euro 4,353 thousand.

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