Integrated Annual Report 2024

Integrated Annual Report 2024

Letter from the President

In 2024, SACMI reached another milestone: the 105th anniversary of its founding.

To celebrate, more than 5,000 people took part in a major event, held on Saturday 30th November. It also provided an excellent opportunity to bring people together and strengthen the bond between SACMI and the city of Imola, and between Imola and the world

An increasingly complicated world that sometimes seems disconnected from reality and people’s real needs, a world of permanent conflict, of ‘everyone against everyone’. In this scenario, caution has become a must yet, at the same time, so have decisive strategies and action plans. The threat of a regionalization of global trade generates uncertainty for exporters and, above all, for our customers. The progressive erosion of the fundamentals that underpin globalization is effectively redrawing the world economy.

Over these last few, complex years, SACMI has relied on a solid strategy in which the shared drivers of digitalization and sustainability have played a key role. We’ve had to rethink our underlying concept of what a factory is: indeed, it’s no longer simply a place where machines are produced but is, instead, an integrated ecosystem that comprises the entire value chain and a set of new high-added-value services that hone processes, enhance competitiveness and safeguard the environment.

Hence our continued investment in training, in young people, in the new skills needed to ferry the company into the future: all with a sharp awareness of both our roots and today’s changing needs, always with a focus on ‘human’ intelligence, expertise and continuous innovation. Against a tense, uncertain international backdrop, 2024 saw SACMI maintain its strategic focus on its core businesses, continuing to make the most of all opportunities for growth that help strengthen the Group's ability to create sustainable value Expanding the offering in core areas is just one aspect of a more general strategy that, again in 2024, incorporated sustainability at every level

In parallel, further strengthening of market-orientated service within the value chain was combined with a nurturing of solid, structured relationships within the economic ecosystems in which we operate.

This is why the 105th anniversary was more than an opportunity to share SACMI’s actions and strategies with as many people as possible: it was also a crucial moment to reflect on the significance of the principles and values that have produced such lasting success on world markets.

Towards the Group Sustainability Plan

Protecting the planet as a way of sharpening competitiveness has been a key part of SACMI’s strategy for years: this is why the company channels resources and energy into making its sustainability policy more effective and reporting on its results.

In practice, this has led to the establishment of dedicated internal bodies (Sustainability Board) and has involved as many of the organization’s vital nodes as possible in defining and implementing these policies. Today, the sustainability team has 140 members located throughout the Network.

This year, the goal has become even more challenging and complex as the new CSRD (Corporate Sustainability Reporting Directive) is set to come into force: while the EU Commission and Parliament have yet to decide when it will become compulsory, SACMI has nevertheless decided to bring the necessary measures forward to align

standards, facilities, strategies and actions. The first step was to adapt sustainability reporting, starting with an analysis of impacts, risks and opportunities and incorporating the concept of ‘double materiality’ (i.e. identification of strategic topics and projects, their quantification in terms of resources, accurate monitoring of goals and results). Thus began a process that led to the definition of the first Group Sustainability Plan a strategic document that concerns both production facilities and the business model. This aims to make SACMI a leading Italian - indeed, European - sustainable manufacturer from an environmental, social and governance perspective and in terms of the company’s impact along the entire value chain (suppliers, customers, schools and universities, communities).

As part of a responsible Governance model, this means defining the strategic projects and key sectors the Group needs to focus on in order to implement its growth and sustainability development policies. Again, this has involved ESG training for those with managerial responsibilities and carefully targeted courses for employees. Training will be further refined as the year progresses.

The ‘easy Factory’

In 2024, SACMI continued to invest in projects that further reduce the impact of its manufacturing processes. This involved increasing its capacity to self-generate energy from renewable sources (SACMI facilities around the world produced a total of more than 2.6 million kWh in 2024), reducing water consumption (particularly in ‘high water stress’ areas) and improving the ability to turn waste into a resource by applying a circular economy logic.

For a company like SACMI, which mainly operates according to a B2B logic, the vast majority of impacts (over 99% in the case of emissions into the environment) concern the quality of the technologies and services we’re able to provide to our customers this requires that we calibrate emissions and help drive them down throughout the machine life cycle.

Hence the launch of a specific monitoring program, in compliance with the main international regulations and benchmarks. The goal is to estimate the indirect emissions in tCO2eq linked

to use of SACMI products during their lifespan (Scope 3, indirect emissions) and further strengthen the commitment to eco-design and product innovation

From a practical perspective, in 2024 this resulted in the presentation of the new Easy Factory, a set of technologies in which productivity, process control, and the circular economy form part of a unified approach to manufacturing. The Easy Factory goes well beyond the regulatory frameworks in force in any given area or country as it integrates the very concept that sustainability is - regardless of location - a crucial production/system competitiveness factor.

While originally intended for the ceramics industry, this approach now has a much broader reach that embraces all SACMI solutions, technologies and fields of activity. In terms of tangible results, for example, SACMI is now the world’s first company capable of providing the market with a comprehensive range of ceramic manufacturing decarbonization solutions that span from hydrogen and electric kilns to the latest spray dryers and hybrid dryers. In parallel, efforts to recycle and reuse in the packaging sector (primarily plastic) have been combined with advanced research into new materials such as cellulose fiber, which has less environmental impact; projects of global importance are being developed in synergy with customers and certification bodies. Note also that new process control systems (applicable across all sectors), software and systems streamline machine management, reduce consumption and prevent waste. This approach helps customers equip themselves with the digital and technological expertise they’ll need to compete not just in terms of the product but also in terms of the entire life cycle of the manufactured goods, from procurement to disposal and reuse: an approach that will continue to guide SACMI in the near future.

In parallel, we’re increasingly committed - as highlighted by the Up to us campaign - to a production and marketing strategy that includes a precise definition of expected ESG performance, with SACMI playing a growing ‘consultancy’ role to support partners around the world: a role the market acknowledges and appreciates and one that will be increasingly crucial for success as we move forwards.

Financial performance

2024 was a solid year that outstripped expectations, with figures buoyed by the sale of the Beverage Division to Omnia Technologies. In light of a correction to consolidated revenues (1.728 vs 2.035 billion in 2023), again a consequence of a reduction in the Group's perimeter, the recurring consolidated operating margin (i.e. net of the contribution from the one-off sale of Beverage operations) rose to around 15% of revenues, boosting the increase already observed in 2023.

EBITDA including non-recurring contributions, stood at over 323 million euros, EBIT at 236 million euros Net Profit at over 200 million euros

The cyclical slowdown in the Ceramics Division has been offset by growth in the Rigid Packaging and Packaging & Chocolate Divisions.

By the end of the year, the Net Financial Position (NFP) was positive at 208 million euros (+155 mln vs 2023). This figure considers the proceeds of the sale of the Beverage Division, which combined with good cash flow generation. Control of NWC (Net Working Capital) dynamics to safeguard operating cash flows remains central to management strategy.

The consolidated gross bank debt decreased by over 50 million euros in 2024. In general, the Group continues to enjoy a solid financial debt structure, oriented towards the medium-long term and mainly characterized by fixed interest rates.

By the end of the year, Net Equity comfortably exceeded the one billion threshold (1.055 billion euros), an increase of 172 million euros compared to 2023.

Looking to a 2025 that, despite multiple sources of uncertainty, aims to stabilize the key financial performance indicators, it will be crucial to continue investing heavily to maintain and extend competitive advantages

Markets

In 2024, the ceramic sector (Tiles, Tile Finishing, Sanitaryware & Tableware) experienced some excess output capacity. This had various causes: a slowdown in the global construction market, the persistence of conflicts and geopolitical instabilities and, last but not least, emerging protectionist pressures that have led to prudence on the part of investors.

Nevertheless, the market continues to have the utmost confidence in SACMI products. It acknowledges their technological excellence and, in parallel, appreciates the Group’s plant engineering approach, which provides a complete, turnkey response as regards both upgrades to existing plants and greenfield projects.

Diversification of the range, greater product segmentation and a broader offering have proven to be the cornerstones of a strategy that seeks to maintain good market competitiveness, target proposals effectively and include new high-added-value customer services (e.g. process control, maintenance plans and revamping).

In these areas, 2024 saw SACMI focus on completing its offering. The acquisition of a majority share in Italvision – through the subsidiary BMR – played a key role, as did the company’s entry into the Intralogistics sector (through SacmiCassioliIntralogistics and, in the Sanitaryware sector, via the acquisition of assets from German company Lippert).

The approach to the Advanced Technologies and Materials sectors remains broad and diversified. The former experienced steady growth in the heat exchanger sector alongside a contraction in the Powder Metal market, to which SACMI is responding by focusing on new technological processes to produce high-performance components. The Refractory sector remains stable, while the Lithium area is experiencing a further strengthening of synergies between SACMI companies with expertise in the sector, confirming its strategic positioning despite a certain slowdown in gigafactory projects in Europe and the United States.

The Rigid Packaging Business made steady progress in 2024 following on from a three-year period of uninterrupted growth. Equally positive was the product mix, with a further increase in market share. The strong growth of recent years has largely been driven by the expansion of the beverage sector, characterized by high levels of innovation. In these areas, Business continues to outstrip market growth, highlighting the company’s technological leadership and the strengthening of SACMI's role as a key driver of the main innovation and development trends. Protecting industrial intellectual property remained a priority in 2024, as demonstrated by the acquisition of ThisCap and the relative patent portfolio.

SACMI Packaging & Chocolate posted excellent revenues in 2024. Order intake remained positive, especially in the first half of the year and despite an uncontrolled rise in the price of raw materials (especially cocoa), with the market continuing to be highly receptive to SACMI products. In 2024 Packsud inaugurated a new headquarters in Terlizzi (Bari), an event greeted with enthusiasm and a real sense of belonging following the company’s successful incorporation into the Group, a process that began in 2020.

On the international shipments front (Italiansped), 2024 was characterized by a non-linear trend that saw a further drop in maritime freight while air freight volumes remained stable. A generalized drop in the propensity to consume (and therefore, invest), aggravated by the tense geopolitical scenario, is a key factor in the shrinkage of international trade. On the other hand, the share of turnover from non-Group customers grew further, confirming Italiansped's role as a respected player in a sector that is highly competitive and specialized.

In 2024 a new Intralogistics Division was launched. This move aims to complete the range of systems available to customers and make production/distribution set-ups more efficient and sustainable. In addition to the successful launch of the business and the first orders, 2024 also saw construction work begin on SACMI’s automated warehouse, located on the parent company site in Imola. In addition to being the new Division’s first major project, this warehouse will provide an opportunity to show potential customers what it’s capable of.

In 2024 Defranceschi posted its best performance since joining the SACMI Group. Thanks to innovative positioning within the industry and a strong patent portfolio, the company saw volumes grow despite the challenges currently facing the wine-making sector. Together with its patented holding tanks, the Defranceschi range continues to enable a unique approach to the design of complete wineries. In this regard, operations finalized in 2024 included the acquisition of a 20% share in the JHP Group.

Following years of vigorous growth, 2024 saw Protesa further strengthen its position. More specifically, in the Energy sector the bulk of projects continued to involve the construction of new ground-mounted photovoltaic systems. In addition to confirming the company’s pivotal role for SACMI’s customers (ceramic companies), the sheer quantity and quality of extra-sector projects has seen Protesa expand its reach from Emilia-Romagna to the whole of Italy.

Employment

On 31st December 2024 the SACMI Group employed 4,756 people in 70 manufacturing, distribution and service companies located in 25 different countries. Once again, in 2024 the majority of new hires (161 on a like-for-like basis) were aged under 30, most of them STEM graduates.

Staff training and close partnerships with schools and universities – a long-standing SACMI policy – were further consolidated during the year. More than 94,000 internal training hours were provided while closer ties between the company and the main research bodies - primarily universities close to SACMI’s places of business - boosted the capacity for ‘knowledge absorption’.

In 2024, SACMI renewed its Partnership Agreement with the University of Bologna, hosting 150 students on work-related learning programs, university internships, dissertation projects, scholarships and PhDs.

We’ve worked hard to enhance SACMI’s digital culture and make our company increasingly attractive in terms of both the quantity and quality of growth opportunities (in 2024 SACMI surpassed the milestone of 6,200 patents and was

confirmed as one of Italy’s top 10 companies by number of European patents). We’ve also focused on building an exciting, values-based, collaborative environment that lets SACMI face new challenges every day.

In 2024, SACMI again had the lowest employee turnover rates on the market (3.9% in Italian companies, less than in 2023). In short, those who join SACMI aim to stay for a long time: an approach that perfectly matches our cooperative mission, in which inter-generational development is a cornerstone of future progress.

Investment levels also remained high, reaching almost 185 million euros in the three-year period, 71 million in 2024 alone.

Involvement in the community

Celebrations to mark the 105th anniversary of the founding of SACMI Imola, held in November, represented the culmination of a journey that has long focused on listening and connecting to our communities: both in Imola, home to our parent company, and throughout the world where the Network's production and sales sites operate.

This has resulted in no less than 2.4 million euros being donated to communities over the three-year period. All projects focused on people's primary needs (healthcare, education, safety) and, as part of a policy designed to build synergy between factories and communities, were extended to all the Network’s sites.

Ties with local economic ecosystems remained strong, with more than 90% of suppliers having their registered office or operations in the areas where SACMI global Network sites are located.

Taking an all-encompassing approach and pushing back against the isolation that can impact the most vulnerable, we’ve responded by listening even more attentively to our local people and by getting suppliers and customers involved to design priorities and strategies that defend our excellence, our manufacturing chains and, therefore, the communities and the planet itself.

We enter 2025 aware of the challenges and uncertainties that await us. However, we also do so secure in the knowledge that we shall seize new opportunities successfully and strengthen a leadership that has, in SACMI’s 105-year history, been built on our values and passion for innovation.

Investment (in millions of euro)

Number of employees (on 31.12.24)

«Sustainability is the fuel of future competitiveness. We need new skills and ‘intelligences’ and our strategy is designed to ensure we develop them. The 105th anniversary underscores our close ties with local communities and the relevance of the principles and values that have guided SACMI's global success from the very beginning».

Paolo Mongardi President of SACMI Imola SC

Double Materiality

During 2024, the Group conducted a dual materiality analysis1 to update the list of sustainability issues relevant to the Group and its stakeholders. The results of this analysis guided the drafting of this Sustainability Report.

The first phase of the process aimed to draw up a long list of impacts on the economy, the environment and people (human rights included) that are potentially significant for the SACMI Group. This list included positive and negative, actual and potential impacts that the Group causes directly through its operations or to which it contributes indirectly through its business relations. To map all the impacts that are potentially significant for the Group, an analysis of the Group’s different businesses, the countries in which it operates and its entire value chain was initially conducted. Furthermore, context analysis was carried out, using the ESRS Topics, Sub-Topics and Sub-SubTopics listed by the standard within Application Requirement (AR) 16 of ESRS 1 ‘General Requirements’ as a reference.

The next stage involved assessment of the impacts identified via this process. These were appraised internally by representatives of the Group Sustainability and Finance and Risk Management departments, and externally – via an online survey – by several stakeholder groups: employees, suppliers and customers. In both cases, participants were asked to rate each impact on a scale of 1 to 5 to take into account its scale, scope and probability of occurrence. Note that, while internal assessment was carried out on the full long list of impacts, the interviewed stakeholders assessed an abbreviated list that grouped some of the impacts together.

Once both assessments were completed, the impacts were prioritized on the basis of the ratings assigned to each by both SACMI and its stakeholders: a materiality threshold (3.5) was then established. Impacts whose overall rating exceeded the threshold were defined as significant for the Group.

In conjunction with the above-described impact assessment, material sustainability-related risks and opportunities for the Group were also identified and evaluated. As with the work carried out on impacts, a long list of sustainability risks and opportunities was first drawn up the identified risks and opportunities – relating to environmental, social and governance issues – were assessed by the Group CFO using qualitative and quantitative scales that considered the financial operational and reputational consequences of each risk and each opportunity.

For risks, this assessment was twofold, with the financial effects of the inherent risks on Group sales initially being assessed (i.e. net of any mitigation actions implemented by the Group). In light of these evaluations, any corrective actions the Group has already implemented to mitigate such risks were identified and analyzed and, lastly, each risk was assessed in terms of its ‘residual risk’ (i.e. the result of combining the inherent risk and the existing mitigation actions). At the end of this process, risks and opportunities were prioritized according to the assessments of each and defined as ‘material’ or ‘non-material’ depending on whether they breached the materiality threshold (3.5).

1 The concept of dual materiality described in the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) has two dimensions: impact materiality and financial materiality.

A sustainability issue is significant from an impact perspective when it concerns the material impacts - actual or potential, positive or negative - of the company on people or the environment in the short, medium and long term. This definition includes both the impacts related to company operations, products and services, and those related to its business relations in the upstream and downstream value chain.

From a financial perspective, however, it is significant if it generates risks or opportunities that affect (or can reasonably be expected to affect) the company’s financial position, financial results, cash flow, access to funding or cost of capital in the short, medium or long term.

This process led to the identification of a list of environmental, social and governance impacts, risks and opportunities that are material for the Group and its value chain. The result of the analysis was approved by the SACMI Group Sustainability Board on 12th November 2024.

Capacity for innovation

Workplace health and safety

Generation of emissions along the value chain

Generation of other significant in-atmosphere emissions

Use of harmful or dangerous substances

Workplace health and safety

Water withdrawals and impact on ‘water-stressed’ areas

and Cybersecurity

and work-life balance

Personnel training and collaboration with schools and universities

Use of natural resources with consequent reduction of their availability

Use of virgin non-renewable resources

Innovative solutions/products to transition towards ecocompatible materials

Accidents and occupational illnesses within the Group

Unequal remuneration of Group employees

Exclusion of disabled individuals from Group workforce

and end

Respect for human rights within the organization (child labor and forced labor)

Inadequate remuneration of Group personnel

No collective bargaining agreements

Non-compliance with collective bargaining agreements

Limitation of freedom of association Observance of human rights

No dialogue with trade unions

Respect for human rights along the value chain (child labor and forced labor)

No collective bargaining agreements along the value chain

Limitation of freedom of association along the value chain

Privacy and Cybersecurity

Product quality and safety

Supplier management and assessment

IT security for customers and end users

Health and safety for end users

Access to information

No ESG screening of suppliers

Payment to suppliers

Business culture

conduct

Ethics and integrity in business conduct

Safeguards for whistleblowers

Episodes of corruption

Failure to respect Group employees’ work-life balance

Training and management of talent within the Group

Contrasting corruption

Ant-corruption prevention and training

Impact Material topic

The SACMI Group | 1

SACMI was founded in Imola (Italy) in 1919, on the initiative of 9 young mechanics and blacksmiths. Originally a ‘small mechanical repairs’ workshop, it has grown to become a global industrial Group with 70 manufacturing, distribution and service companies located in 25 countries worldwide

SACMI is an international industrial group with a daily commitment to improving people's quality of life. It achieves this by providing solutions with a high-tech content that are designed to meet everyone’s basic needs. In 2024, the parent company, SACMI Imola, celebrated its 105 th anniversary

Our story

SACMI was founded in 1919 in the town of Imola, Italy, on the initiative of 9 young mechanics and blacksmiths united by the same ideal: work as a means to improve their social standing and that of the community.

This happened at an extremely difficult time for Italy. The First World War had ended and there was a severe economic crisis, with high unemployment and inflation.

From its origins as a workshop for ‘small mechanical repairs’, the 1930s saw SACMI produce its first own-brand machines mainly for the nascent agro-industrial sector. During the bombing of the Second World War, it was our own workers who risked their lives to save the machines and equipment.

Later, in an Italy liberated from German occupation, SACMI was the one of the first companies to get back on its feet.

Between 1948 and the early 1950s SACMI developed two key innovations that would make company history: the first ceramic press and the first complete machine for crown caps.

Years of intense development followed as SACMI worked alongside the growing Italian ceramic and packaging industries.

Our vocation for ‘plant engineering’ began to take root. This saw the development of comprehensive solutions, from raw material to finished product, especially in the ceramic sector. Expansion into foreign markets began, with the first branches opening in Spain and Brazil in the 1960s. Other overseas subsidiaries and offices would soon follow across all Group businesses. By 1963 exports were already accounting for more than 50% of SACMI’s revenues

In 1989 the SACMI Research Center was established. From 1990 to 1994 SACMI developed the compression technology that would become the world’s plastic cap manufacturing benchmark, flanking the historical crown cap business. The development of preform machines, bottling lines and labeling machines also put the company in a position to supply complete plants to the packaging sector.

The 2000s saw SACMI enter new areas, such as chocolate processing and packaging machines. In 2008 we entered the Metal Powder sector, the first step towards a strong, well organized presence in the automotive sector. Expertise in ceramics continued to grow, resulting in the launch of Continua+ technology, now the global benchmark for slab and sub-size forming. At the same time, SACMI developed Deep Digital, a new approach to integrated digital control of surface decoration-glazing. This was followed by the creation of a Business Unit that focuses on developing Advanced Technologies and Materials the aim being to draw on

the skills already acquired by the Group and intercept new opportunities for growth, especially in sectors linked to electric mobility and high-performance components.

The 2020s see SACMI push ahead with investments in process automation , digitalization and sustainability . For example, the ‘circular economy’ concept was approached from a plant engineering perspective. This involved the development of systems for the complete recovery of raw materials and water purification. In parallel, a complete re-think of thermal processes focused on alternative fuels and efficient heat recovery so that individual machines or even entire plants can run on ‘zero fuel’, accelerating the decarbonization of processes.

These activities go hand in hand with the Research & Development of eco-sustainable materials (e.g. for the packaging sector) and the technological progress needed to implement the transition to a greener industry.

On one hand, recent years have seen digitalization and artificial intelligence and, on the other, an even sharper focus on the core businesses of ceramics, packaging, and advanced materials/ technologies. In parallel, SACMI has completed its range of ceramic finishing lines, established a new Intralogistics Division and invested in new process control systems, in which the ‘eyes’ of the machine work in concert with workers to create newer, better products while making production increasingly sustainable, efficient and environment- and resource-friendly.

It’s up to us to protect the future

Loyalty and integrity

We take pride in our openness and transparency. Discussions are in-depth, decisions taken together, promises maintained. We play by the rules, putting people and communities first.

Ensuring the company handed to future generations is an even better one.

mission

Research and innovation

We invest in cutting-edge research, driving technological innovation.

Quality

With a sharp focus on product and service quality, we provide effective answers to the real needs of global markets.

Synergy

Our flexibility lets us make full use of technological synergies and implement operational integration across widely differing industries.

Sustainability

Our Group drives economic growth by creating solutions and projects that prioritize the global community and the protection of the planet.

Freedom with responsibility

We’re free thinkers with an entrepreneurial spirit, we take the initiative and take responsibility for the results of our work. If we make a mistake, we see it as a valuable learning opportunity.

Innovation

We’re guided by a passion for research and innovation.

Partnership and cooperation

We build long-term, mutually respectful, rewarding business relations with customers by working together. Working together because together we’re stronger.

Belonging

Our roots run deep, yet our vision is decidedly future-focused.

SACMI companies worldwide

Italy

SACMI Imola

SACMI Forni & Filter

SACMI Molds & Dies

Keratech

SACMI Verona

Gaiotto Automation

SACMI Tech

SACMI Carpmec

B&B

SACMI Packaging & Chocolate

Defranceschi

Iprel Progetti

Italiansped

Protesa

SACMI Impianti

Nuova Sma

Euroelettra

Velomat

SACMI Service

Tecnos

Pack Sud

BMR

Italvision

SacmiCassioli Intralogistics

Spain

SACMI Ibérica

Portugal

SACMI Iberica Sucursal Em Portugal

Luxembourg LAEIS

United Kingdom

Surface Inspection

Germany

Sama Maschinenbau

Riedhammer Alpha Ceramics

Switzerland

SACMI Packaging & Chocolate Swiss

Poland

SACMI Polska

SACMI Packaging & Chocolate

Turkey

SACMI Istanbul Sanayi Ve Tic. Bozüyük Warehouse Office

United Arab Emirates

SACMI Middle East

Egypt

SACMI Egypt

Molds & Dies Egypt

South Africa

SACMI South Africa

India

SACMI Engineering - Ahmedabad

SACMI Engineering - Mumbai

SACMI Engineering - Morbi Branch

SACMI Engineering - Dwarka Warehouse

Thailand

SACMI Thailand

Singapore

SACMI Singapore

Indonesia

SACMI Indonesia

Molds & Dies Indonesia

Italiansped – Indonesia Office

Vietnam

SACMI Vietnam

China

SACMI Hong Kong

SACMI Machinery - Changshu

Branch

SACMI Machinery - Foshan Nanhai

SACMI Machinery - Shanghai

LAEIS - Dalian

Japan

Riedhammer Japan

United States

SACMI USA

SACMI USA - Tennessee Branch

SACMI USA - California Branch

BMR USA

Mexico

SACMI de Mexico

SACMI de Mexico - San Luis Potosi

Warehouse Molds & Dies Mexico

SACMI de Mexico - Italiansped Office

Cuba

SACMI Imola Sucursal Cuba

Brazil

SACMI do Brasil - Mogi Mirim

SACMI do Brasil - Rio Claro Branch

BMR do Brasil

Argentina

SACMI Impianti Argentina

Tiles | 1.1

2024 followed a three-year period characterized by significant synchronous investments and strong purchasing patterns. On the one hand, these dynamics allowed the business to achieve, between 2021 and 2023, the best results ever. On the other, in 2024 this high investment flow resulted in excess production capacity in a scenario that is - due to a range of factors, such as the slowing global construction market, the ongoing conflicts in Ukraine and the Middle East and emerging protectionist pressures - permeated by a sense of uncertainty and a lower propensity to consume and invest. This situation persisted throughout 2024 and into the first few months of 2025, suggesting that the hoped-for recovery has yet to take effect and could still be some way off.

Diversification of the range by geographical area, greater product segmentation and a broadening of the solutions on offer: these are the cornerstones of SACMI’s strategy for staying competitive on markets, targeting products effectively and addressing the trade-off between strong demand for products with ever-greater added value and the drive towards greater manufacturing scalability and efficiency to contain costs.

Technologies and markets

Continua+ achieved the milestone of 200 sales, confirming its status as the world's leading manufacturing technology for slabs and tiles of different size and thickness. Combining new technology - such as filling devices for digital through-veining - with the availability of a new ‘hyper-productive’ configuration across the entire range has opened up new opportunities for customers, resulting in high-level projects around the world and major expansions of existing plants. The slab sector is, then, recuperating, thanks also to the multiple versions of Continua+ and, crucially, the increasing output rate of the range and wider compaction fronts. In a market with stagnant volumes, these additional improvements to both the appeal and the positioning of Continua+ have led to the finalization of several counter-cyclical projects – modernization of existing lines, investment in greater product quality – especially in Italy, Turkey, India and Latin America. For example, in Brazil the industry continues to lean towards ‘wet’ production techniques (an area in which SACMI leads the way with its modular grinding technology) that combine Continua+ with full digital ’ decoration (DHD+DDG). All this is taking place against a backdrop of unusual production models, such as new giga-factories based on high vol-

Product innovation, process digitalization and new decarbonization technologies played pivotal roles in 2024. SACMI strengthened its technological leadership with Continua+, full electric kilns and new control systems, all with a unique ‘easy Factory’ approach. Assistance and revamping played increasingly strategic roles

umes and low prices. It is, then, highly significant that many manufacturers continue to invest in Italian technology to boost product quality and enter new, higher-added-value segments. With an offering structured to increase productivity ( PH Veloce and new PHC Red Edition ) and reduce consumption, traditional pressing also performed well.

As regards kilns, 2024 saw both the innovation and diversification of the range to ensure full coverage of market demand. Notably, the international Tecna 2024 fair and the Open Week held in parallel at SACMI offered opportunities to present the new 100% electric kiln prototype, which completes the range of kilns and dryers able to run on new, clean fuels (electric, hydrogen from renewable sources). This solution makes SACMI the only company on the market to have an allround technological offering (hydrogen and electric) designed to help the industry achieve its decarbonization goals. In parallel, 2025 begins with the presentation of the new FMN single-layer roller kiln, which seeks to boost the competitiveness of the kiln/dryer range, also in combination with Continua+, on strategic markets such as India.

With shrinking volumes causing an inevitable slowdown in projects, body preparation remains strategically important as a way of sustaining customer investment in higher product quality. In 2024 this area saw the introduction of some major sustainability-focused innovations: for example, the new ‘dual fuel’ spray dryer can automatically run on electricity produced from renewable sources or on traditional fuel. Moreover, the SACMI range includes increasingly large, more powerful machines (modular mills and spray dryers) that are acknowledged as standard-setters worldwide.

The SACMI ‘easy Factory’

Hyper-productivity, digitalization, quality controls, fewer emissions and less waste are the cornerstones of the new ceramic factory concept SACMI launched in 2024. Alongside the solutions already outlined, the Tecna fair saw SACMI exhibit new automatic handling devices. These included the ‘full electric’ LGV Spinner vehicle and, for the sorting department, the ‘smart’ picking gripper with automatic size recognition, as standard on the latest generation of SACMI gantry palletizers and also installable on existing solutions.

The easy Factory combined with new Tile Finishing solutions (BMR and Italvision inspection systems) and a sharp focus on assistance, has played a strategic role in establishing a new digital factory concept that gives customers immediate, tangible advantages both in terms of process management and the approach to the market.

SACMI ‘digital services’ featured prominently at the fair: they included a new digital slab tracking system (ID-Tiles) and new line supervisors (Line Manager) that complement the HERE supervisor’s Operations capabilities. Moreover, they can work in unison with new inspection systems by Italvision. Such systems enable real-time checks at every stage of the process and provide feedback-powered adjustment: this offers an effective response to the burgeoning need to lower OPEX and eliminate the waste and costs associated with reworking non-compliant products to ensure total quality.

Customer Service

Despite the general uncertainty and signs of a slowdown in the ceramic and construction industries (first noticed in Q4 of 2023), tile manufacturers continued to purchase spare parts and services throughout 2024.

In this context, the provision of specific revamping packages for existing machines (mills, spray dryers, kilns, etc.) gained considerable momentum in 2024. This set of solutions is doubly strategic for SACMI – which has the world’s largest machine pool – as it forms a concept that can be leveraged both to streamline the green transition (e.g. new electric modules on dryers and spray dryers) and, more generally, make production processes more efficient . This is achieved by acting on individual machines/phases and installing specific sensors in the various departments to obtain real-time monitoring of efficiency, consumption and other key variables. In addition to the spare parts and revamping packages sold through the usual channels, many services are provided via the SPACE portal. This SACMI online platform provides customers with use and maintenance manuals, spare parts from the catalogue that can be viewed and purchased online, plus, of course, a section dedicated to technical assistance ticketing.

Once again, 2024 saw assistance-related work increase its contribution to Business Unit revenues and profitability (it now accounts for at least 50% of the overall result). Hence the further strengthening of the assistance network’s coordination capacity throughout the year, a process that will continue in the future. The input of the network of subsidiaries located in the world’s main ceramic manufacturing districts is, indeed, priceless, as it ensures close daily contact with customers.

Key technological innovations

Broadening of the machine range, with a focus on the development of ultra-large spray dryers to optimize production and boost overall process efficiency.

New de-carbon ATM design and testing of air heating systems for ATMs with zero CO2 emissions. Insertion of a patented modular electric generator. Presentation of an industrial module prototype and completion of experimental tests.

Expansion of Continua+ technology both in terms of higher productivity (linear feed rates up to 12 m/min) and the effective compaction front (up to 200 cm wide). The new hyper-productive configuration is now available on all machines in the Continua+ family, raising productivity to over 30,000 square meters per day. The acknowledged industry benchmark, this technology reached the milestone of 200 sales at the start of 2025.

Consolidation of the new range of V-Nature feed devices, on Continua+, for through-body digital decoration. Expansion of the attainable product range (natural stone, marble, wood and other material-like finishes) with through-body digital graphics comparable to natural veining: intended for high-added-value segments (mainly counter tops and furniture). The year 2024 also witnessed further refinement of the aesthetic quality delivered by the new devices - with new products showcased at trade fairs - and significant increases in line productivity.

Strengthening of the high-tonnage PH hydraulic press range, with new technical solutions that boost speed (pressing rate) by up to 25% and reduce energy consumption.

Drying and firing

Expansion of the digital decoration machine range with new variants, alongside the development of versions with inkjet heads suitable for use with water-based inks

Completion of the CRONOs digital graphics control software.

Optima DHD and Line Up: design of the new optical synchro-aligner based on high-resolution imaging technology to synchronize effects more precisely than other alternatives on the market. Development of new graphics analysis systems for real-time detection of any process drifts and automatic correction of machine parameters.

Further market success for the exclusive integrated DDG glue and grit deposit system that creates digitally controlled material imitation effects and textures on the product surface.

Further development of the Maestro kiln range (especially the FMD digitally-controlled version), designed to optimize consumption, minimize emissions and maximize product quality.

Following the first 100% hydrogen kiln, presented in 2023, design and construction of a 100% electric kiln prototype. Design of new prototype kilns (hydrogen and electric) was followed by specific tests to assess firing quality on different types of ceramic (floor, wall, single-fire, porcelain stoneware, etc.) to confirm perfect compatibility with the new energy vectors. SACMI is thus the first company on the market to have both technologies (hydrogen and electric) needed to help the industry achieve its decarbonization goals.

Design of the new multi-level dryer (3 - 9 roller levels) for ceramic slabs and tiles, able to run on traditional fuels and/or hydrogen, or in hybrid mode (electric+gas), or 100% electric.

Kiln and dryer

Process control

LGVs. Development of new vehicles with three or more independent steering wheels (Spinner) and high load capacity (GT-1000), making solutions more flexible and extending their application range.

Development of a smart picking gripper with automatic size recognition, as standard on latest-generation SACMI gantry palletizers (Dinamica Pick&Place) and installable on existing solutions (Extra-Pack generation).

Adaptive deburring machine a new-concept deburring solution able to handle a single row of items exiting Continua+, whether ‘green’ or dry, offering the advantages of a smaller footprint and greater process versatility.

Development of Id-Tiles a new digital tracking application for slabs.

On HERE, integration of new supervision modules to reduce OPEX and overall equipment effective (OEE), in combination with product/batch digital tracking solutions.

Development of Line Manager, which lets users control multiple in-sequence devices (e.g. decoration) from a single workstation, reducing inefficiencies and streamlining the operator’s work

Impact on sustainability

ATM de–carbon: the patented electric generator is modular and can be sized to match the availability of renewable electricity at the plant (e.g. from rooftop solar panels). Each medium-sized ATM that receives 50% of its electrical power from renewable sources reduces direct emissions by over 9,000 tCO2eq per year.

Continua+ continues to be the most efficient technology on the market thanks to low specific consumption (further reduced thanks to higher speeds) and lower oil requirements (-90% compared to a traditional or discontinuous press). Compared to traditional lines of equivalent productivity, Continua+ lines sold during 2024 will save 18 GWh of electricity, thus preventing over 7,300 tCO2 eq of in-atmosphere emissions. Furthermore, extremely low oil usage on Continua+ machines prevented the production of over 9,500 liters of used oil

A special version of the DHD decorating machine with inkjet heads that use water-based inks reduces the use of solvents and the relative emissions. Each new DHD machine that uses water-based inks prevents the emission of approximately 50 tCO2eq per year. The wet section of DDG decorating machines has also been adapted to use new heads for water-based glues: each new DDG that operates with water-based glues prevents the emission of approximately 150 tCO2eq per year

Thanks to digitally controlled parameters, Maestro FMD kilns reduce heat energy consumption and related CO2 emissions by an average of 7%. Compared to traditional kilns of equivalent productivity, in 2024 the 11 Maestro FMD kilns in operation saved 33.4 GWh thermal meaning 6,600 tCO2eq less in the atmosphere. Body

In 2024, thanks to installation of new Continua+ machines:

-18 -7,300

New inkjet configuration for water-based inks

-50 -150 -9,500 for each new DHD installed for each new DDG installed of used oil* *compared to traditional lines of equivalent productivity

Drying and firing

Compared to traditional kilns, Maestro FMH kilns (hybrid gas-hydrogen with mixes containing up to 50% H2) reduce CO2 emissions by 23%. If powered by a fuel mix containing 50% hydrogen, each FMH kiln would allow a manufacturer to reduce direct CO2 emissions by more than 1,500 tons per year. If powered by renewable energy, the new 100% electric kiln has zero CO2 emissions, preventing the emission of approximately 6,800 tCO2eq into the atmosphere each year.

The ‘Zero Fuel’ dryers sold in 2024 will, compared to traditional machines, reduce overall consumption by 54 GWh thermal, preventing in-atmosphere emissions of over 10,000 tCO2eq per year

The new hybrid methane+electric dryer partially decarbonizes the drying process. Each of these new machines can reduce consumption by over 1,400 MWh thermal and, if powered by electricity from a renewable source (e.g. photovoltaic), reduce emissions by up to 290 tCO2eq per year.

The new digital kilns (FMD) in operation have saved:

-33.4 -6,600 emitted into the atmosphere GWh thermal tCO2eq

FMH kiln (100% hydrogen and methane-hydrogen hybrid): -23% -1,500 per year (powered by 50% methane /50% hydrogen) emissions

tCO2eq

New 100% electric kiln prototype: 0 -6,800 CO2 emissions per year* if powered with electricity from a

New dual-fuel ATM:

-9,000 on a medium-sized ATM powered by 50% renewable electricity tCO2eq

Heat retrieval for the ATM: a series of air/water and water/air heat exchangers use the heat contained in the fumes to pre-heat spray dryer inflows. Study of partial fume recirculation as pressurization air. Solutions for retrieving thermal waste from the chimney (heat exchangers) reduce heat dispersion through the kiln chimney. In the configuration in which the recovered hot fumes are directed to the spray dryer, consumption is reduced by 3,250 MWh thermal preventing the emission of 650 tCO2eq per year per production line.

Water retrieval from the ATM chimney: development of devices that recover the water contained in the outgoing fumes provides energy savings and improves environmental sustainability.

The innovative post-combustion RTO-UP system reduces in-kiln organic compounds (VOCs) and odorous compounds by 95% benefiting both the environment and nearby communities.

New ‘full electric’ Spinner LGV with three or more independent steering wheels: zero hydraulic oil requirements, less maintenance, 20% less space needed for maneuvers.

New OPTIMA process control and feedback systems: less fired waste, preventive identification of potentially non-compliant products (in an unfired state and therefore completely recyclable). This makes it possible to achieve savings of approximately 400 MWh thermal per year on each line, cutting emissions by 80 tCO2eq. What’s more, recycling the unfired waste back into the preparation process can cut raw material consumption by 690 tons per year. Handling

New range of OPTIMA solutions (unfired quality control)

each

Tile Finishing | 1.2

Against a backdrop of macroeconomic stagnation and double-digit decline in tile output (in Europe and other areas of the world), there are nevertheless plenty of signs of recovery, as highlighted by several new high-level investment projects

Stubbornly high interest rates, combined with slowing production and the struggling Chinese real estate market, have led to a cautious approach to new investment that, in the end-of-line sector, generally focuses on improving and optimizing production

In this scenario, the market clearly appreciates BMR solutions for their capacity to deliver more flexible production, tangible advantages in terms of lower energy and tool consumption and greater automation, thus reducing overall manufacturing costs.

At present - and even more so from a long-term perspective - these advantages complement the process control solutions that BMR offers through Italvision a company acquired in 2024.

Markets

The main market for BMR technologies remains Italy , followed by a group of 6-8 highly active countries with several planned investments. For example, Algeria continues to perform well; indeed, in the wake of past investments, it is - thanks to a now-considerable installed machine pool - becoming a major generator of after-sales business. Similarly, companies in Turkey are planning major investments aimed at the high end of the market.

In the United States the introduction of tariffs has led some producers to implement major developments on existing lines to raise the share of locally made ceramic products.

Moving on to Europe, there are significant signs of recovery in Poland , also because it looks to play a part in the reconstruction of Ukraine once the conflict ends, hopefully in the short term. Other key projects are under way in Argentina , Brazil India and the Middle East , with further opportunities being glimpsed in Mexico and the Far East . On the downside, the Spanish market, crucial for BMR, continues to stagnate.

2024 saw BMR focus on product innovation, artificial vision and automation to boost efficiency, quality and sustainability. Integration with Italvision bolstered leadership in the area of process control, with new technologies reducing waste, consumption and environmental impact

Products

In 2024 there was a flurry of innovations that sharpened the strengths of all the main BMR product families and placed the focus firmly on the future. This culminated in the presentation of new products at the international Tecna fair in Rimini.

More specifically, at individual product family level, 2024 saw the launch of the new Squadra Vision Plus line, three of which were soon installed by a leading Italian customer. A fourth line was started up by another long-standing customer, signaling that a technological transition from the successful Squadra Dry Vision is in progress. The innovative camera-equipped grinding wheel vision system the cornerstone of this proposal, will later be extended to other solutions with varying degrees of automation, completing the range across all market segments.

Remaining in the machining, cutting and squaring field, the new Twin Cut deserves a special mention: an evolution of the consolidated Dry Cut scorer-cutter, this machine is suitable for even the most complex products in terms of thickness or where the ceramic materials to be cut are subject to tension.

On the surface finishing front, Levi Compact presented at the previous edition of Tecna and subsequently installed by a major Italian customer, has produced highly satisfactory results, with in-the-field results exceeding expectations. Looking ahead, this unique, innovative, BMR-patented technology is set to be a leading solution for slab lapping lines, with 2025 likely to generate considerable market success.

As regards post-lapping surface treatment, BMR's flagship remains the Plus version of Supershine , which offers several improvements and further advantages in this crucial stage of finishing.

sacmi.com

The broadest, most diversified set of innovations concerned the range of Italvision production vision systems. Note also the successful start-up of the first two units of Shine Vision , an upcoming vision system for lapped products. Equally good results were obtained from the first installations of Optima+ (post-compaction product quality control) and Flawmaster+ , both successfully started up at leading Italian companies.

Customer Service

In 2024, the levels of after-sales business showed how Customer Service plays a key role in the BMR range through its provision of spare parts/assistance, revamping of the installed machine pool and both routine and unscheduled maintenance. Customer Service has proven to be decisive not just economically but also as a way of maintaining the BMR brand’s excellent market reputation.

Looking ahead, 2025 will see the definitive launch of tele-assistance and remote assistance services: these go hand-in-hand with the capacity of BMR systems to generate - thanks to the growing number of squaring machines with camera systems - significant amounts of data, and the availability of the new Line Manager supervisors.

Scenarios

In 2025 we expect to see a result in line with, or slightly higher than, 2024. However, in light of the slowdown in orders that was already evident last year, this goal is a challenging one: the hoped-for recovery in 2025 remains overshadowed by the threat of protectionism, primarily on the American market.

Following major investments finalized in the first half of 2024, Italvision products are now a source of substantial expectations. Additionally, the start-up of the new plant in Schio and rationalization of the Scandiano production facility will help reduce time-to-market and hone efficiency.

A focus on after-sales and the provision of higher-added-value services will prove to be even more decisive on a market that is both intensely competitive and still struggling to recover. Listening to customers and understanding their needsto create innovative, improved products, services and new machines, and provide revamping and upgrading plans for existing machines - will continue to be more important than ever.

This will allow us to build up customer confidence in high-tech products and services. It will also keep economic outcomes at satisfactory levels, despite the industry’s cautious approach to machine purchases and investment in new plants: adapting dynamically to the market will allow us to intercept opportunities for growth and react effectively to periods of contraction.

To generate business proactively, it’s vital to be pragmatic and listen carefully to customers: much of the focus will be on the opportunities offered by new process control solutions that boost automation and improve final product quality.

Key technological innovations

BMR is developing innovative projects within various product lines, the main targets being efficiency, sustainability and energy saving. Hence the BMR 5.0 strategy, which adopts eco-design or eco-planning principles into its finishing machines. Applying these concepts allows us to optimize use of resources (raw materials, tools) and improve working conditions while ensuring outstanding technological performance.

Already used by leading customers in the Italian ceramic-making district, Squadra Vision Plus is the latest addition to the BMR squaring family. This technology aims to make the squaring process increasingly high-performance, efficient and low-noise. It allows for increasingly accurate processing thanks to the development of the exclusive camera-equipped BMR vision system: the latter reduces grinding wheel consumption by up to 40% compared to laser systems (machined product, quantity of material removed and speed remaining equal), optimizing production efficiency, saving energy and significantly reducing noise in the workplace.

Presented two years ago, this unique, patented solution has already proven its worth in the field. For example, compared to traditional processing, it reduces floor space by up to 45%

In 2024, Italvision introduced several systems to the market, completing the SACMI process control range and extending it along the entire ceramic production line. These include OneVision this advanced self-learning unfired material inspection system boosts overall quality, reduces defects (and the relative costs) and adapts to changing manufacturing scenarios.

Moreover, Deep Digital decoration line control is streamlined by new devices such as the Line UP optical synchro-aligner, which upgrades management of complex decoration lines and multiple in-sequence machines. The latter can be integrated with Optima DHD, which checks for any defects and retroactively adjusts the main DHD digital printer parameters. With Line UP, optical alignment occurs through analysis of the graphics and not the edge, allowing perfect pattern alignment.

For checks on the grinding-sorting line and/or downstream from the kiln, SACMI has developed Flawmaster+. Able to detect any ceramic surface defect simply, quickly, accurately and consistently, this solution is unique as it uses Artificial Intelligence to create the reference model, thus reducing the need for manual settings. In connection with the grinding-sorting line, Flawmaster+ paves the way for a new digital factory concept thanks to feedback-powered process tuning.

Presented in 2024 at the international Tecna fair, OPTIMA Kiln is a cutting-edge camera inspection system designed to keep pace with the digital evolution of SACMI kilns by combining precise, accurate color, flatness, size and defect checks with feedback-driven real-time kiln parameter correction.

Another major development concerns ShineVision a machine developed by BMR and Italvision that performs advanced quality control on the finished tile. ShineVision detects aesthetic defects and imperfections - until now interpreted subjectively - making them objective. The main goal of this technology is to optimize the production process by intercepting any defects that can be corrected with subsequent reworks during the finishing process.

Systems and Line Manager (Italvision)

Easy system management, fewer manual settings thanks to

Impact on sustainability

Key projects finalized in 2024 include the study conducted with Unimore (University of Modena and Reggio Emilia) for the complete recovery of squaring dust At daily outputs of 10,000 m², the amount of dust generated is at least 3,500 kg per day (or more depending on thickness, size and removed quantity). Experimental results show that this material can be fully retrieved and fed back into the production cycle , drastically reducing waste and environmental impact.

The vision systems and digital cameras installed on the latest BMR machines play a key role in reducing energy and resource consumption. New, intelligent systems make it possible to monitor processes in real time identify any anomalies and correct them promptly. The increased operational efficiency results in significantly lower operating costs and an improved environmental profile of the finishing process.

Another driver of greater production efficiency is the integration of patented systems with BMR and Italvision cameras. These one-of-a-kind systems have been further improved by the introduction of lasers at the line inlet and outlet, allowing automatic, real-time control of production parameters. Advantages include: a higher percentage of first class items, thanks to improved finished product quality, optimization of resource management and waste reduction.

Less wasted

Line Up

OneVision

The introduction of the LineUp optical synchro-aligner on digital decoration lines provides multiple advantages, such as marginless printing. In addition to the perfect optical alignment that stems from analysis of the graphics, this means significantly less ink consumption on DHD machines.

Opportunities also abound with regard to quality checks on unfired products. For example, it has been calculated that the OneVision system allows manufacturers to recover up to 3% of the material prior to firing thus saving energy (that would have been used to fire non-conforming items) and resources.

Perfect

Reduced material and waste thanks to analysis of graphics

Whiteware | 1.3

Sanitaryware

Following the sector’s record-breaking highs in 2022, order acquisitions assumed a more moderate pace in 2023 that continued into 2024, leading to a result that - while it falls short of the record volumes of 2023 - is nevertheless a positive one given the economic and market circumstances.

Delays to several ongoing projects, attributable to difficulties experienced by customers, meant that some of the expected revenues will be carried over to 2025. Against this backdrop, markets continue to acknowledge the excellence of SACMI products , as demonstrated by high-grade sales and investment on both Italian and international markets.

The international Tecna fair and the Open Week at SACMI provided opportunities to meet customers and present several new solutions. Positive feedback from these events - on both the technical and business side - will provide valuable aid for future projects, in parallel with the hoped-for economic and market recovery.

Markets

A slowdown in global demand is driving some industry players to postpone or defer projects, even where investment decisions have been confirmed. Of course, prospects for an economic recovery are hampered by the sweeping sense of economic recession and geopolitical uncertainty. As a result, a significant portion of customers' output capacity remains under-utilized, a phenomenon observed across several product families, with manufacturers naturally preferring not to increase their stocks without the offsetting effect of sales.

On the Italian market government incentives are currently being wound down. Nonetheless, in 2024 additional machines continued to be delivered to customers who, despite the tapering-off of incentives, have continued their investment plans with SACMI. In this area, distinctive solutions such as RobotClean modules for robotic finishing (in which SACMI is the acknowledged market leader) are particularly popular. Further innovative projects include the start-up of a first multi-robot finishing and glazing line for a leading Italian player: following the success of this ‘pilot’ phase, the project will be consolidated and extended to the wider market.

In 2024 SACMI strengthened its market role by delivering distinctive sustainability and automation solutions. From casting modules to technologies for the retrieval of water and raw materials, all new proposals focused on delivering circularity, digitalization and better working conditions

For Europe uncertainties still abound as a result of growing cost components and strict decarbonization goals that could lead to production limitations.

In this scenario, investing in new technology that lifts process sustainability and automation levels remains appealing, especially in the logistics area, which has become at least as important - if not more so - than product quality.

The main international Groups, in Europe as well as in Brazil China , and the Middle East , continue to focus on projects with high levels of automation. More specifically, Brazil confirms its penchant for multi-year projects aimed at modernizing casting and glazing lines. Major projects are under way in Algeria, with results that will positively impact the 2025 financial year, while complex plant projects in Turkey and Turkmenistan continue, albeit with some delays. The Russian and Ukrainian markets remain closed as consequence of the ongoing conflict.

In 2024, production of machines got under way for the first phase of the ‘zero impact’ sanitaryware plant project in Canada . The second phase is expected to have a positive effect on 2025 performance results as it will involve the supply of additional machines and spare parts, molds, models and accessories.

Products and projects

Last year saw SACMI consolidate ongoing innovation projects. It presented the market with several new technologies that extend the article range able to be produced and enhance the process, improving efficiency, environmental sustainability and working conditions.

Outstanding configurability and versatility are further key components of SACMI's message to the market, a message based on the mosaic of solutions ’ concept. The tesserae of that mosaic are the technologies and systems that provide customers with immediate, tangible added value while addressing environmental and circularity issues.

In the circularity field, the Tecna 2024 fair and the Open Week simultaneously held at SACMI offered opportunities to show customers some new solutions that, with their pilot phases completed, have already demonstrated their validity on the market. For example, WaterCleaning ultra-filtration technology allows near-complete retrieval of the water and solids dispersed during production. Similarly, the new Rec-Pitcher system for grinding fired scraps and feeding them back into Vitreous and Fireclay bodies aims to achieve full retrieval of waste.

RobotClean – the industry’s first solution to eliminate worker exposure to crystalline silica dust –was also developed in 2024: this features a new patented system that automatically replaces the abrasive part of the tool. 2024 also saw the launch of an all-new glazing booth in a self-cleaning configuration: this features automatic cleaning cycles that allow 100% recovery of glaze overspray, drastically reducing the time taken to wash booths at the end of the shift.

Casting, which lies at the heart of SACMI’s automatic sanitaryware plants, saw the introduction of solutions that expand the range of producible articles. These include the AVR, a new casting cell for the manufacture of next-gen WCs or ‘smart toilets’ that is an evolution of the tried-and-tested AVI. An AVI-OP version of the latter for one-piece WCs was also launched during the year. Further innovations have been introduced to improve specific aspects of the process. For example, the

AVB-ALV cell for WCs and washbasins has a new system for applying porous resin inserts inside the mold to create undercuts in functional parts of the piece; the system also features in-line digital printing of the barcode on the article.

On the automation side, 2024 witnessed a strengthening of the plant engineering approach, which enhances and extends the automation logic of individual process phases. Moving on to handling control, SACMI continues the RobotLoad project, an automatic kiln loading solution that extends automation to yet another area of the factory, in combination with the new multi-robot finishing/glazing line.

A further set of solutions is taking us towards a genuinely ‘collaborative environment’ that smoothly interfaces workers, robots, vision systems and AI. These include the VISUS 3D optical device that performs automatic article alignment and, with regard to tracking, the new RobotLogo application for decal printing of the brand.

On molds, the DPD ‘by tooling’ project (direct machining of porous resin blocks) continues to go from strength to strength. In 2024, for the first time the number of molds made using this method exceeded the number made using traditional ‘by casting’ systems. A combination of drastically shorter mold development times and the ability to create increasingly complex molds has broadened the scope for production, taking it in the direction of true ‘digital modeling’. Another new SACMI development for 2024 was ‘by casting digital ’, which involves direct milling of polyurethane blocks to create the case mold.

In the process control area, the company continues to develop and market the Machine Data Collector , a solution used to control production parameters.

In the General Industry segment, instead, research into possible extra-sector applications for the spraying and finishing technologies developed by Gaiotto is ongoing.

Scenarios

The first few months of 2025 reflect trends observed in 2024, confirming the excellent positioning of SACMI products on all markets. On-site work proceed apace. This is steadily clearing the considerable backlog accumulated in 2023 and has resulted in renewed progress on projects that were still experiencing delays caused by pandemic-related lockdowns. Looking ahead, this will free up considerable resources to be redirected to the technical and after-sales assistance that customers perceive as crucial.

Product optimization and innovation , alongside the development of projects linked to plant logistics, remain the key to achieving the required flexibility and keeping the SACMI range competitive. Sharpening our ability to listen to customers is another vital goal: this allows us to offer contextualized, targeted responses that focus not just on circularity and better working conditions but also on process automation and digitalization.

Key technological innovations

The success of the DPD by tooling project (in 2024 the number of molds produced with this technology exceeded traditional casting flows) allows for the manufacture of increasingly complex molds. This has paved the way for a new project to identify optimized formulas for the porous resins with which the molds are made, the aim being to further increase the competitiveness of this product, which is a SACMI hallmark. The first ‘green mold’ prototypes for WCs and washbasins made by tooling, are currently being manufactured by a leading Italian customer.

In 2024 the following were finalized:

• development of the new AVI-OP wide-rim casting module for one-piece WCs, which can handle molds with up to 7 parts. Commissioned by a leading international player, the project was presented to customers at the Tecna international fair in Rimini.

• AVR, an innovative casting module that allows for demolding on the foot or on the rim and machine rotation of up to 180°, designed to create articles with innovative geometries (e.g. smart toilets and one-piece items with shell-engine-rim technology) that ensure quality and practicality.

Insertion of sensors inside the glazing cell to monitor parameters such as glaze viscosity and glaze spray cone and their variations/correlations with the application effect on finished products, using feedback data to tune spray parameters. New modular water trap glazing machine with highly product-specific glaze application solutions. Modelling/molds

Digitalization

Expansion of the range of articles that

(one-piece, smart toilets innovative geometries)

Collaborative robotics

The ‘light’ Machine Data Collector supervisor project is a key enabler of plant digitalization, allowing profitable use of process data (productivity, alarms, etc.) at every stage of manufacturing. Presented at the international Tecna fair, the new software will be installed by a leading Italian customer in 2025.

RobotLogo, a prototype collaborative robot for applying decals on unfired glazed products, was presented in 2024. Installation is expected to go ahead at a major Italian customer’s facility over the coming months. This year also sees the launch of a project to develop new-concept autonomous guided vehicles (AGVs) to handle products in tight spaces (easier to integrate into existing systems). The Qualitrack project for the automation of sanitaryware sorting continues apace: in 2024, phase 2.0 of the project was upgraded with integrated Artificial Intelligence

Monitoring and feedback-powered tuning of glaze spray cone parameters.

New modular water trap glazing machine.

Process

quality, repeatability specificity

consistency and

High for type of article to be glazed

Glazing

Digitalization/robotics

Machine Data Collector, RobotLogo, AGV, Qualitrack 2.0 software

‘light’ supervisor Collaborative robotics,

First prototype of easy integration on existing plants

Simplicity and ease of use

sorting

Impact on sustainability

In 2024, the second phase of the WaterCleaning project was completed: this patented SACMI technology for wastewater recovery has already been successfully installed by a leading Italian customer. Integration of the new centrifuge (dual treatment phase with initial roughing of the material) has significantly increased efficiency, allowing retrieval of more than 90% of wastewater. Project result: the completed system (the capacity of which was doubled in 2024) allowed 10,000 m³ of water and 90 tons of top-quality raw materials to be retrieved and fed back into the body.

In 2025, the world’s first fully hydropowered sanitary ceramic plant - featuring SACMI technology such as the Riedhammer TRS-E electric tunnel kiln - will come online in Canada. Expected benefits include 11,000 tCO2eq less per year compared to a conventional ceramic plant. This project paves the way for ‘complete climate neutrality’ in the sanitaryware industry

2024 saw the conclusion and presentation of a project that aims to develop glazing booths with one or more walls made of porous resin panels with self-cleaning properties. A prototype has already been successfully installed by a key Italian customer. Key advantages include the recovery of 100% of high-density glaze overspray (>1,700 g/l), which can be fed back into the process immediately, providing a 25% reduction in glaze requirements and an 85% reduction in the frequency and duration of wash cycles These panels can also be made with recycled materials (up to 20% of their content can come from CNC mold machining chips).

As part of the ‘Sustainability-focused powder and fiber pressing and forming technologies’ project co-funded by the Emilia-Romagna Region’s 2024 tender to attract investment, research is being done see whether sanitaryware items (sinks and washbasins) can be formed by isostatically pressing spray-dried powders containing significant percentages of recycled and/or dry-ground raw materials. The goal is to obtain a sustainable body processed on Tile-style automation lines. Expected to continue into 2026, the project poses several challenges, such as the production of more complex articles and the formulation of special adhesives to dry-bond functional parts.

In 2024, following the same logic (i.e. using large percentages of recycled materials in the bodies), washbasins with colored bodies and full-body decorative inserts were made and presented at the international Tecna fair, with visitors greatly appreciating their striking aesthetic effects. This year, the goal is to industrialize the process and develop automatic control systems to achieve the desired effects.

Opportunities for making machine or cell parts with eco-friendly materials are steadily making inroads on the market. More specifically, in 2024 SACMI presented the first booth with walls made of recycled polycarbonate instead of the traditional steel. Applied to some parts of Gaiotto glazing cells and SACMI casting modules, the project aims, in 2025, to extend their use within the SACMI machine pool. The aim is to encourage their ‘psychological acceptance’ by the market, also by highlighting their advantages in terms of durability (unlike steel, plastic does not oxidize).

In July 2024, a major customer started up a new complete multi-robot line for finishing and glazing sanitaryware (RobotClean+RobotGlaze). This patented solution consists of no less than 17 robots in series (including handling, finishing, glazing robots) and can be managed by just one worker, with a line takt time of just 110 seconds (needed to obtain a finished, glazed article).

Sanitaryware formed by (on automatic Tile-style lines)

Development of

(recycled and/or dry-ground raw materials)

Ecodesign

New recycled polycarbonate panels for machine or cell parts

Lower

‘sustainable’ bodies environmental impact durability ‘Full-body’ isostatic pressing

Process

High performance and (no rust)

decorative inserts made from recycled material

New multi-robot finishing/glazing/ handling line

17 in series robots 1 only worker

Whiteware | 1.3

Tableware

Markets were cautious in 2024, confirming a trend that emerged in the second half of 2023. Excess stocks meant that some machine and automation projects were delayed until 2025.

Several players therefore prefer to implement a risk mitigation strategy, avoiding stockpiles of materials that might not align with the shapes and colors the market may demand in the future.

Markets

From a results and order acquisition perspective, the focus has, for the above-stated reasons, been on individual machines as opposed to complete plant/line projects. The main target areas consist of both European and extra-European markets, particularly Bangladesh , Turkey and India

Products and projects

In 2024, SACMI acquired assets from the Lippert ‘Industrial Solutions’ division that included intellectual property rights and technological assets. This enriched the SACMI range by perfectly integrating automated product flow management solutions, kiln car loading systems, and production/storage buffers. More specifically, in the Tableware sector, the acquisition of Lippert assets has played a role in expanding the SAMA range, particularly in storage and logistics areas; it also helped expand the machine range in specific areas (e.g. spray glazing) by adding machines already in the Lippert portfolio that enjoy good market recognition.

The chosen strategy – continuity of production, service and supply of spare parts for Lippert machines, guaranteed exclusively by SAMA – aims to strengthen SACMI’s role as a global partner to the industry, innovating it in the direction of ever-improving automation.

2024 saw SACMI strengthen its offering by focusing on handling, glazing, logistics and process control. The strategy of incorporating new skills and technologies into the entire process continued, with automation and sustainability acting as the key drivers

Scenarios

The first few months of 2025 confirm the trends observed in 2024: cautious investment in complete lines and a preference for projects designed to replace or upgrade individual machines or stages of the process.

In an industry that still sees a prevalence of manual operations in various phases of the process, further expansion of the range in the crucial automation and intralogistics areas will be essential.

As with Sanitaryware, it will be vital to focus on after-sales aspects and engage in attentive listening and consultancy to strengthen trust in SACMI products and services, a must if new projects are to be acquired.

Key technological innovations

SAMA’s acquisition of Lippert ceramic technology and the related patents has expanded the automation offering with solutions that focus on interconnecting machines, from forming to glazing, all the way up to automatic kiln loading.

The proposal aims to automate more phases of production, increasing efficiency and reducing the need for manual handling

Lippert’s new patented mold drying process has been incorporated into the range. This reduces average drying times by up to 75% and optimizes the relative consumption and space requirements.

Again with Lippert, integration of spray glazing technology completes the SAMA dip-glazing offering.

Development of a system based on neural networks and AI to integrate automatic unfired/fired product inspection points into the plant. The goal: to implement new advanced, automatic, feedback-powered process control functions.

Impact on sustainability

As part of the corporate project ‘Pressing and shaping technologies for powders and fibers aimed at the use of sustainable solutions’ co-financed by the Emilia-Romagna Region’s call for investment attraction, launched in 2024, a new powder forming technology for the production of tableware and dining accessories obtained from 100% recyclable cellulose fibers is being investigated.

The goal is to obtain products with better technical characteristics/mechanical performance compared to currently available items (paper plates): products that can be reused several times and are more durable than classic disposable materials. Key environmental advantages - in addition to the sustainability of the material itself - include the near-elimination of CO2 production during firing.

Technologies | Advanced | 1.4

Metals

A new sales record was set in 2024 following customers’ continued propensity to invest in sheet metal forming.

Once again, the year was dominated by the heat exchanger market. Fourteen new PHL1500, one PHL16000 and two PHL5000 lines were sold, all to be supplied to the world's leading exchanger manufacturer with which SACMI has enjoyed mutually rewarding business relations for some time. The bulk of these machines were installed during the year, the remainder to be supplied and started up in 2025. Note also that, following the record orders of recent years, 2024 saw a decline in order acquisitions, with the effects of this readjustment likely to be felt in 2025.

In 2024 SACMI posted record sales in the sheet metal sector thanks to a booming heat exchanger industry.

Development work continued on PM and Hard Metal technologies for the manufacture of high-performance components

Strategic priorities in this area include the ongoing development of two technologies that SACMI has focused on in recent years: helical gear component compaction and die wall lubrication (DWL) for the production of high-density components. Through these, the aim is to create specific, high-tech applications with potential in the automotive industry and other sectors. These technologies are being applied on many ongoing projects: several customers visited SACMI during the year to test the two systems, generating opportunities that could materialize in the near future.

On the Cookware front, a PHP5000 was installed by a European customer who began production of deep-drawn items: the line was supplied complete with automated aluminum disc loading and pan unloading systems made by Gaiotto.

Key technological innovations

Development and testing of the second 16,000-ton PHL press, with relative loading/unloading automation and an integrated die changeover trolley.

Optimization of the DWL (mold wall lubrication) system. In particular, a new lubricant spray system was designed and tested, with optimization of the machine work cycle. In the helical gear field, the production of high-density 10° helical gears was tested using a combination of both technologies. A sample set of 45° pieces, currently undergoing intensive testing on ceramic kiln roller motors, was also made.

Construction of the first 80-ton electric press - to be used in technical ceramics - for a leading American customer in the medical sector, to be installed in 2025.

The sale of Smart Service packages for presses continues, with customers expressing considerable satisfaction. A data collection dashboard for MPH presses has also been developed: this provides customers with crucial machine/process data and delivers new, advanced technical assistance functions.

Impact on sustainability

Industrialization of the DWL system, a powder metallurgy technology that eliminates the need for lubricant in metal powders thus shortening thermal cycles and reducing consumption and CO2 emissions.

Increased expertise in the development of electric presses which, compared to hydraulic solutions, cut consumption on average by up to 60-70%

Design of a system to reduce energy consumption on metal waste compaction hydraulic presses. Once the technical feasibility study was completed, a solution was put forward to a key customer.

New Smart Service packages for presses mean fewer inefficiencies (and, therefore, less wasted energy and resources) in terms of downtime and wear.

Lubrication in the mold wall

thermal cycles Smart Service

compared to traditional hydraulic presses

Reduced downtime and wear

Technologies | Advanced | 1.4

Refractories

In 2024 the business performed positively, with volumes for both machines and spare parts in line with 2023.

More specifically, 5 presses with forces ranging from 1,000 to 2,500 tons were sold and numerous revamping projects were completed, demonstrating Laeis ability to maintain performance at peak levels and provide solutions that respond to customers’ specific needs.

A look at the markets highlights the growing importance of India : here, the refractory sector is expected to grow significantly alongside the steel industry, which is set to expand significantly in the coming years.

Vice versa, the market in China is contracting and increasingly fierce local competition limits sales opportunities. Consequently, to increase the competitiveness of the range, investments were made to optimize press production processes at SACMI Nanhai.

A positive year for the sector, with a growing order intake and streamlined intra-Group synergies. Automation and digitalization powered innovation, with new presses, loading/quality control robots and innovative firing and drying processes honing efficiency and sustainability

In 2024, order books filled rapidly , reaching levels significantly higher than those seen in 2023. This was mainly the result of several major projects that got under way towards the middle of the year, the fruits of which will be visible in 2025.

This performance was driven by the fact that the main global groups acknowledge the SACMI range as the most comprehensive and most reliable on the market: a reputation built by establishing successful synergies between the various companies in the Group (Laeis, SACMI Imola, SACMI Nanhai, then Riedhammer for kilns and Gaiotto for automation).

Note also the launch of a major project in North Africa, which will result in the supply of a near-complete plant. With the design phase already under way, the project could materialize during 2025.

Contrastingly, all projects related to production of the saggers used in lithium battery powder treatment - the focus of considerable efforts until last yearhave either slowed or been postponed.

Key technological innovations

Production /Revamping

Automation /Robotics

Sale of the first PHR press model with the Laeis control system to implement stateof-the-art automation on SACMI brand presses. The first PHR press featuring the new automation will be installed in 2025. In relation to this development, active promotion of revamping packages on SACMI PHR presses requiring electronic upgrades continues: the first contracts could be acquired during 2025.

Further strengthening of synergies between group companies with construction of the first PHR press in SACMI Nanhai and the installation of 7 robotic islands supplied by Gaiotto to a Turkish customer.

Development of a new pressed brick quality control system featuring an articulated robot, in collaboration with Gaiotto.

Design of a new robot-controlled powder filling system for presses, offering increased flexibility, ease of maintenance and broader operational opportunities.

Consumption and emissions

Impact on sustainability

Launch of a project to develop a new generation of refractory presses with low energy consumption.

With Riedhammer, implementation of new electric-hydrogen firing solutions to lighten the environmental impact of the process.

Digitalization

on the PHR press tange

Production/Revamping

Robotics

New robot-assisted and systems (Gaiotto)

A new ‘complete plant’ concept and promotion of maintenance packages on presses (Smart Service) to optimize resources and reduce waste. A new dashboard that gathers data on machine operating states gained ground on the market in 2024, laying the basis for further development of scheduled maintenance plans.

Consumption and emissions

High-efficiency presses kilns (Riedhammer)

New dashboard to from machines

Digitalization

Advanced Materials | 1.5

Technical Ceramics

The application range for technical ceramics remains broad and diversified. SACMI continues to lead the sector, mainly with the sale of stand-alone machines, co-designed and co-built by SACMI Imola , LAEIS (presses), Riedhammer (kilns) and Alpha Ceramics (the latter plays a key role in both testing and direct production).

One of the most significant 2024 projects saw Riedhammer supply two new tunnel kilns for advanced zirconium-based materials to a major global company in support of its ‘green technology’ applications.

Additionally, Riedhammer supplied foamglass manufacturing kilns in the USA, contributing to the development of a circular economy in this sector.

In 2024, SACMI strengthened its position with new Riedhammer-developed tunnel kilns for zirconium and foamglass. ‘Green’ circular applications saw the Group boost its performance in the area of advanced, high-performance materials for the energy, environment and mobility sectors

Key technological innovations

Technical ceramics are high-performance materials characterized by extreme heat resistance, high mechanical strength and chemical durability. They are used in various industries, such as automotive, medical, and electronics, to obtain long-lasting precision components.

To give the materials these properties, a specialized firing process, which reaches temperatures of up to 2000°C, is required. Riedhammer industrial kilns enable precise control of temperature, atmosphere and the cooling phases to confer the desired properties on the material.

Advanced Materials | 1.5

Carbon

As in the previous year, 2024 was characterized by stable performance and the finalization of key projects.

In China, we successfully completed all six new Car Bottom Furnaces (CBFs) - designed for the production of special materials - for one of the industry’s major players.

In general, the performance of the industry, in which SACMI is a key provider of carbon electrode and anode heat treatment solutions remains intertwined with trends within the main target industries of special steels and aluminum. On the one hand, these markets are under increasing pressure from Chinese competition in Asia and the Middle East. On the other, opportunities for growth continue to be stifled by the ongoing Russia-Ukraine conflict.

Impact on sustainability

Technical ceramics play a crucial role in environment-friendly projects by allowing the manufacture of more efficient, longer-lasting components in renewable energy systems, such as fuel cells and photovoltaic panels

Their resistance to extreme conditions reduces waste and energy consumption, making manufacturing processes more sustainable. Additionally, technical ceramics are used in filtration systems to reduce emissions and purify air and water, making manufacturing industries more environment-friendly.

Impact on sustainability

The heat treatment kiln business remained stable in 2024: several new systems were delivered and the prime focus remained energy efficiency.

New projects concentrated on reducing consumption, reinforcing SACMI’s position as a ‘sustainability leader’ in the industry

Riedhammer kilns (CBF) for Carbon applications have design features that make significant contributions to energy efficiency. Tests performed on the latest installed solutions show that, compared to traditional technologies, energy consumption per ton of material produced is more than 25% lower.

-25% consumption

for every ton of material produced

Advanced Materials | 1.5

Lithium

In 2024, the global lithium-ion battery industry experienced economic-driven developments that impacted both cathode and anode active materials. Despite continued growth in the electric vehicle market, particularly in China, demand in Western markets fell short of expectations. Several major manufacturers in Europe have postponed or cancelled planned projects for new plants. Additionally, some gigafactories already in operation in Europe and Canada have closed down, or were never completed, or failed to deliver the anticipated output.

One of the consequences was an oversupply of the noble metals used in batteries such as lithium, nickel, and cobalt. This oversupply led to a drop in raw material prices, affecting the profitability of mining companies and forcing some to delay projects or halt operations.

At the same time, technological advancements, such as the increased adoption of lithium iron phosphate (LFP) batteries, which do not require nickel or cobalt as the NMC cathode active materials, shifted the demand for specific cathode materials.

Ultimately, these trends increased volatility in raw material markets and posed major challenges for the entire value chain, requiring the industry to adapt and redefine its supply chains and production strategies.

In this context, the SACMI Group’s volumes declined slightly compared to 2023, with more significant reductions occurring in China. By contrast, Riedhammer’s new large-capacity roller hearth kilns effectively addressed the industry's need to lower CAPEX and OPEX for the leading cathode and anode material producers in Europe and North America. Note also the acquisition of a major project to fire Cathode Active Material in Canada

In particular, synergies between SACMI companies with expertise in the Lithium sector have expanded the product portfolio along the entire value chain, allowing the Group to offer customers a more comprehensive range of solutions: these include spray dryers, ball mills, jet mills. pneumatic conveyor systems, off-gas treatment systems, electromagnetic separators, blending and batching silos, and complete battery recycling plants.

While some global projects slowed, SACMI nevertheless expanded its range - and expertise in the electric mobility sector, driving the establishment of a circular economy with high-capacity kilns, groundbreaking automation and projects to recycle spent battery components

Scenarios

The year 2025 will be a year of consolidation for the global lithium-ion battery (LiB) market, driven by increasing cost pressures, particularly in Europe and the USA, as they compete with China. The industry continues to face challenges from fluctuating raw material prices, supply chain disruptions and slowing demand in key markets.

Moreover, geopolitical instability - including the ongoing tensions in Eastern Europe and trade disputes between major economies - is further impacting investment and expansion plans. Many battery manufacturers and material suppliers are postponing projects or scaling back production. Even in the event of a gradual stabilization of demand, prices and the geopolitical scenario, a market recovery is unlikely before mid-2026.

Against such a backdrop, it will be essential to continue working on solutions that have proven to reward customers from a management/operating cost optimization perspective, together with further reinforcement of the product portfolio.

Key technological innovations

Design and construction of applications for gas kilns that run on fuel mixes with a high percentage of hydrogen or ammonia

Design of a kiln combustion air pre-heat system that recycles air from inside the kiln itself (via a Venturi burner).

Design of a water heating system that uses kiln exhaust fumes.

Optimization of electric roller kilns

Optimization of sagger automation systems for the lithium industry, with optical and flaw detection sensors (to extend sagger lifespan).

Participation in new plant projects in China Europe and the USA

An expanded product portfolio in the value chain and in LiB (lithium ion batteries) technologies.

Development of solutions for recycling exhausted batteries

Design and production of complete lines in synergy with SAMA’s Technical Ceramics area.

An innovative lithium calcining process that requires no saggers in the kilns continues to undergo development.

Development of a new tunnel kiln to boost productivity on calcining lines..

Consumption and emissions Recycling

Impact on sustainability

Lower consumption and emissions on kilns that use hydrogen- or ammonia-fueled burners or electric heating elements. Utilization of thermal waste to heat air and water.

Energy and emissions savings thanks to a new lithium calcining process that does not require the use of in-kiln saggers.

Development of engineering and layout for a plant that grinds battery cells and separates their constituent materials.

Design and patenting of an innovative recycling system that uses pyrolysis in a rotary kiln; design of a production process exhaust gas treatment system. Further potential plant concepts, also for the recycling of different materials, are being assessed.

Consumption and emissions

New hydrogen/ammonia + electric heating elements

burners Energy recovery

savings (with the no-sagger-process) thermal waste

Engineering of an exhausted battery cell

Innovative recycling process through process

grinding pyrolysis

in a rotary kiln

Circular economy

Rigid Packaging | 1.6

In 2024 production increased by 18% compared to 2023, making this the third year of uninterrupted growth (+85% since 2021). Equally positive is the product mix, with a further increase in the percentage accounted for by compression presses and the relative molds .

These results are also being driven by healthy spare parts sales, +13.7% in 2024, which follows in the wake of the +20.7% increase seen in 2023. As in 2023, order intake remained high throughout the year, with the much higher backlog generating a further increase in volumes.

In recent years the business has gone from strength to strength, with expansion largely driven by considerable growth in the beverage sector . In turn, that growth is attributable both to a return to pre-Covid levels of consumption and an increase in sales of bottled water in PET.

The sector continues to be highly innovative , witnessing an accelerated implementation of new neck standards and further progress in cap lightening.

Thanks to general growth in the Beverage sector, 2024 saw SACMI post record volumes by focusing on new tethered patents and high productivity. Pioneering projects explored ‘Cap2Cap’ recycling opportunities and new materials such as cellulose fiber

Progress has also been driven by the EU legislation that made tethered caps mandatory from 1st July 2024.

In these areas, Business growth has outstripped market growth highlighting the company’s technological leadership and the strengthening SACMI's role as a key driver of the industry’s main innovation and development trends.

In terms of investment in human, economic and organizational resources, participation in international trade fairs (key events in 2024 included the NPE fair in Orlando and the Chinaplas fair) continued to be essential. As business has grown, so too have the number of personnel, technical projects and patents.

While the year offers many positive takeaways, the difficult global economic situation - characterized by extremely aggressive competition, from both Western countries and China - remains very much in the foreground. Furthermore, the escalating macroeconomic uncertainty (geopolitics, tariffs, regulations, sustainability, etc.) is having a significant impact on decision-making processes: this also involves the packaging market, with consequent disruption to order intake.

The year 2024 will therefore be remembered as an exceptional one for business results, but also as a period of considerable uncertainty vis-à-vis future trends in cap design. Among other things, this has led to a decision to adopt a more proactive market strategy. Evidence of this can be seen in the recent

takeover of ThisCap and its patent portfolio , made up of extremely sound tethered solutions able to be implemented using SACMI technology. In general, patents retain their strategic importance as a way of securing intellectual property control over products and maintaining SACMI's leadership and market positioning.

Plastic caps. In the Closures division, the Plastics area enjoyed further growth in 2024 and continued to increase its market share . The exceptional order intake of 2023 – which actually began in 2022 – meant the year began with a record backlog, making a positive contribution to the overall result. Another major boost came from a leading global brand owner’s approval of SACMI’s new 26/22 mm cap for CSD, the result of constant work to provide timely innovation. This recognition had immediate effects on investment by the major groups and could speed up replacement of the 28 mm PCO1881 necks.

In China, investment by the main customers continues to drive growth, especially in the compression press segment (CCM but also CCMM). In this area, there is a clear tendency for the main bottling players to move towards self-production of caps . This has positively impacted the SACMI portfolio, despite a period of sub-optimal growth on the Chinese market and the potential risks of installing excess capacity (the consequences of which include an expansion of the used machine market in China and Africa).

That same trend – self-production of caps and preforms – is emerging in India alongside an increase in the number of small-scale local producers who prefer used products (local or Chinese); because of this, it will be essential to enhance the competitiveness of the SACMI range.

Metal caps. Within the Closures Division, the Metal area experienced robust growth in 2024 –+53% compared to 2023 – despite falling short

of the forecast. Further good news came in the form of the finalization of complete lines (ringpull in China) and the replacement of obsolete machines and lines (PMA and various crown cap lines). Synergies with Velomat assembly solutions (e.g. the disk insertion solution) also played a crucial role in this segment.

Consolidation and completion of the range in areas adjacent to the historic crown cap business is of vital importance to SACMI, hence the focus on a project to build new presses to complete the line of press-twist and twist-off caps with PVC-free annular lining. Diversification and completion of the range of machines and systems (for twist-off, 60 mm tall caps, etc.) also have long-term strategic importance as sustainability-related dynamics could drive further growth in the metal sector.

Preforms. The PET division closed the year with a stable result, slightly higher than the one posted in 2023. Most sales are concentrated in Africa and Southeast Asia confirming the soundness of several strategic partnerships. With converters, maintaining high standards and performance remains essential. To achieve this, the division is focusing on completing the press range and improving the speed and effectiveness of assistance services. Further strategic goals include increasing mold design capacity to make the product portfolio autonomous.

Containers. Development of the LBF simulatori.e. producing the container by compression and subsequent stretch- blowing - continues, with a sharp focus on competitiveness of production cycles. Ongoing partnerships with large-scale Groups and attendance of the main 2025 trade fairs could lead to the realization of the year’s first industrial projects.

Post Processing. The Division includes both the stand-alone slitting and folding machines and the Velomat portfolio. Results in 2024 were encouraging and an improvement on 2023, albeit

lower than budget forecasts. Being able to guarantee customers the highest quality and service standards is, of course, essential: this is being achieved by further integrating SACMI and Velomat in the fields of offer preparation, design and order execution.

In general, Velomat has a more balanced customer portfolio than in the past and this has had a stabilizing impact on performance. On the slitting side, the trend is extremely positive. This is thanks both to the impetus from tethered caps - the result of excellent teamwork between the slitting machine designers and the Lab - and significant investments by several multinationals in the sector who have purchased their first SACMI slitting machines and ‘embraced’ this production philosophy for the first time.

Computer Vision Systems. The CVS area grew by some 13% in 2024. This result builds on investments made in recent years and demonstrates the Division's clear ability to generate value . Today, Computer Vision is, to all intents and purposes, an integral part of the ‘main product’ and enhances both its appeal and competitiveness.

The proposed solutions have benefited from an AI-powered shift from product control to process control . This shift has also been driven by the team's outstanding digital skills, close technological support and in-depth understanding of the product, without which it would be difficult to achieve effective, comprehensive promotion of SACMI technology.

More specifically, 2024 saw higher sales in the metal products vision sector, mainly thanks to an effective strategy adopted by the Network in collaboration with local agents. It should also be noted that 2024 saw the ‘made in China’ CHS product go on sale: further developments are in progress to achieve further optimization of production.

Customer Service Growth in spare parts volumes continued apace, exceeding 13% in 2024; the highest-performing areas included Africa , Latin America and China thanks to a strengthening of the network and the signing of dedicated business agreements. In general, initiatives that focused on offering upgrades, tool renewal, etc. have also paid off.

Smart assistance packages were broadened during the year to include a Smart Pack for presses, Smart Care and Smart Services for scheduled maintenance plans, and in-Cloud assistance. While they have yet to achieve significant volumes, these packages represent a major innovation in the portfolio on offer to customers and are expected to generate tangible economic returns in 2025.

Continuous growth in volumes, mainly driven by an expanding installed machine pool, does nothing but increase the strategic importance of after-sales services , which are the source of a good part of customer satisfaction and, therefore, loyalty. Refinement of service planning will this be essential in order to match Business Unit’s expansion rate of recent years and its goals.

Key

technological innovations

In 2024 strategic development of ‘high speed presses’ began. Results materialized in early 2025 with the presentation of the CCM64MD press, the fastest the company has ever made, capable of output rates of up to 2,850 caps per minute with 64 molds.

Achieved goals included a 50% increase in productivity compared to the current range, lower consumption, lower operating costs (50% more caps produced on the same floorspace), plus the ability to support, with just one machine (171,000 caps per hour), two high-capacity bottling lines (1 press = 2 80,000 bottles/hour lines). Playing a pivotal role in this development is the synergy between press and mold, with optimized COOL+® molds helping reduce machine cycle times (just 1.35 sec on the new CCM64MD).

Strategically, the goal is to extend the high-productivity line concept to the entire range by working in parallel on the development of new cap designs and increased tool production capacity.

From a product perspective, SACMI has reinforced its technological leadership with a range of solutions that streamline the transition to the new 26/22 mm neck standards. In 2024 that strategy was also bolstered by a strengthening of the patent portfolio (ThisCap® takeover), with the relative tethered solutions - already appreciated by the market - producible with SACMI technology. On the presses, diversification of the range of ‘Smart’ packages for digital control of machine parameters (Smart Pack 2.0), preventive maintenance plans and inCloud assistance services (Smart Care and Smart Service) continued.

Crown caps. Development of the new lightweight ULG (ultra-low gauge) crown cap continues: lightening of the shell, less plastic content, implementation of laser marking on the PMC to insert ‘digital’ content.

generation of CCM presses

2,850 with 64 molds (CCM64MD) productivity

caps/min

compared to current range

Complete lines. Development of a complete line for twist-off and press-twist caps, implementation of new PT formats on the PM24L lining machine. The goal is to broaden the range for non-crown metal caps and, in parallel, strengthen the leadership in lining technology.

Expansion of the mold range to make the product portfolio autonomous. Strategically-oriented development of the new IPS 500 press and the IPS240 for the 96-cavity mold continues in order to complete the product range.

Development of the ‘Smart Pack on the IPS press (4.0 controls, moisture content, etc.), with delivery scheduled for 2025. Development of chatbot-style virtual assistant on IPS. Continuation of the project to integrate the vision system (PVS) with the press - already a distinctive feature of the IPS400 - and its application, with some improvements and greater flexibility, on the new IPS500 press project.

Confirmation of the Rigid Packaging Beverage Lab’s role as a provider of strategic support on customer innovation projects (integrated cap-preform design, transition to new neck-cap standards)

Development of the LBF (Linear Blow Forming) project proceeds: this introduces the new ‘linear’ process (preform production by compression and subsequent stretch-blowing). The test phase has now been successfully completed. Trials are under way with customers who produce a range of container formats, mainly for the pharmaceutical sector.

Development of complete lines

Smart Pack

industrialization (LBF) for container production implemented on IPS range (ultra-low gauge) project on crown caps and

Linear

Containers

Plastic Caps

Metal Caps

Plastic Caps

Development of the new 3,000 caps/min slitting machine to support the high productivity of the next-gen CCMs and the compact cutting line (for injection line applications).

Laser marking on the cap: in the first half of 2025 a pilot solution will be installed on the customer's premises.

New electronically timed cutting system. Testing and sale of the first prototype planned for 2025.

Integration of Smart Pack’ on the SFM cutting and slitting machine and on the solution for inspection/sample checks on the PFMC tamper band. The aim is to develop advanced sensors to monitor key parameters (e.g. tool position, consumption, etc.) and achieve feedback-driven machine adjustment. Internal validation of the project was completed in 2024. The first prototypes are expected to be marketed during the year.

Development of a complete line for the production of Sport Caps, which are also developed by SACMI. The ‘turnkey’ solution includes development of the press, molds, assembly machine, slitting machine and vision system.

Development of new CVs (computer vision software suite) packages continues. The goal of these AI-powered systems is to shift quality control towards process control, with further advantages from a system ‘ease of management’ perspective (Classy AI).

2025 will see reorganization based on ‘technical hubs’ within the SACMI Network, the aim being to boost Customer Satisfaction, increase technical assistance and spare parts volumes, and enable ‘servitization’. Field tests carried out on customers’ premises will be prioritized to support the SACMI Smart Care service (in-Cloud sharing of machine operating data). A new Artificial Intelligence algorithm is also being developed on the basis of customer-specific databases to provide personalized spare parts lists and maintenance task schedules.

Impact on sustainability

'High-speed' CCM. Thanks to increased productivity, the new CCM press - which has an output rate of 2,850 caps per minute - reduces specific consumption (0.43 kWh/kg, 15% less than the previous generation). In terms of emissions, this results in savings of 8 tCO2eq per year per machine production remaining equal.

'Cap2Cap' rHDPE: launched in 2023, the project to create a cap-to-cap recycling chain for food-grade HDPE has entered the operational phase, with the first industrial solutions expected to reach the market in the second half of 2025.

The project acknowledges the world’s ever-greater demand for plastic (currently 400 million tons per year of virgin plastic, over 1 billion by 2050), of which approximately 12% is currently recycled, most of it through ‘downgrading’ The European Union has set itself the goal of raising the percentage of recycled plastic packaging to between 25 and 65% (depending on packaging type) by 2040 while, at the same time, creating a true circular economy (e.g. recycling caps to produce new caps).

The SACMI project aims to employ ‘mechanical recycling technology, also for packaging that comes into contact with food. At present, this can only be achieved through chemical recycling which, since it requires much more energy than mechanical recycling, has a higher carbon footprint (and therefore higher costs).

The key stages of the SACMI ‘Cap2Cap’ project:

• Identification of a supplier of recycled high-density polyethylene (HDPE) that is prevalently obtained (>95%) from the food-grade supply chain (a task made easier by the introduction of tethered caps, which remain attached to the beverage bottle).

• Fine-tuning of a selection process that divides flakes according to macro-colors and eliminates unwanted materials.

• Selection of the most effective HDPE decontamination technology.

• Execution of molding tests on a CCM compression press to determine compatibility with cap performance and safety requisites.

• Establishment of a pilot plant at the former SACMI Packaging facility (scheduled for summer 2025) to perform industrial tests.

Results attained so far have confirmed the soundness of the project from a cap performance and safety perspective and as regards the technological feasibility on the CCM press.

Plastic Caps

The project lets SACMI integrate the upstream range, allowing expansion of its value proposition by supplying, in addition to the machine the mold and the cap design (D4R Design for Recycling), the sale of certified recycled material. The SACMI Lab, instead, provides added value by defining the recipe: this definition includes the percentage of rHDPE able to be used in the process to maintain compliance with the converters’ and bottlers’ specifications and includes the plant set-up required to use this material. In Europe, recycling is facilitated by the regulatory context and, specifically, by the application of the PPWR (Packaging & Packaging Waste Regulation) Directive that complements the Single Use Plastic Directive (in force since 2024) on tethered caps, with immediate opportunities stemming from the ability to obtain significant quantities of certified food-grade recycled HDPE from the same PET recycling chain. The goal is to produce, by the time the PPWR Directive comes into force (2030), a marketable quantity of recycled granules capable of feeding the CCM presses used on the European market with the minimum amount of recycled material required by law (10%), that is, some 7,000 tons per year of rHDPE. Key project goals also include the promotion of the solution outside the EU.

In addition to providing virgin plastic savings that equal the percentage of rHDPE contained in the recipe, this approach reduces emissions, as each kg of mechanically recycled resin emits approximately half the CO2 of virgin resin.

The company has also begun feasibility studies on the development of a PET cap (with the goal of having mono-material cap-bottle packaging).

AGILE’ project on the CCM. Key design features of these new high-productivity presses include the minimized energy consumption of each plant component, the ability to process recycled material and alignment of Smart Pack digital packages. Development of ‘full electric’ mold drive systems are also under development.

Cellulose line. The development of cellulose fiber products (including closures and coffee capsules) based on dry molding technology continues via testing and sampling with customers. In parallel, 2025 should see completion and internal validation of the first industrial line (CFU002), with installation by a customer expected for early 2026.

Post processing

The ULG crown cap cuts material consumption (-30% total weight compared to a traditional 0.22 cap) and reduces plastic content (as much as 40% less by using innovative solutions).

Research into the all-metal ring pull (zero plastic) cap with internal etching has begun.

Development of the electric IPS for high performance and energy savings.

SACMI IPS presses can be fed with up to 100% rPET and up to 75% PET in flake form.

With the LBF linear process, high productivity is achieved while simultaneously minimizing energy consumption thanks to full electric execution (0.5-0.6 kW per kg of plastic processed, making the solution the best in its category). Thanks to its modularity, LBF can use from 2 to 6 cavities, doubling output per cavity compared to traditional technologies (and achieving outputs of up to 30 million containers per year) with a smaller footprint.

The new laser marking system can ‘enrich’ caps with useful information (for traceability, marketing purposes etc.), doing way with the traditional ink offset printing that the market perceives as having limited recyclability

New electronically timed slitting system (FSP) for applications on returnable bottles and cardboard containers.

Technological scouting

Following a preliminary phase, monitoring and technological scouting sought to identify alternatives to PFAS (perfluorinated alkylated substances) in the production of machine components. PFAS are synthetic chemical compounds resistant to natural degradation processes on account of the strong bonds between fluorine and carbon atoms. In light of the limits introduced by European regulation 2024/2462 and subsequent amendments (with the extension to new sectors from 2027), the goal is to create a database of such components and identify technological alternatives together with strategic suppliers.

Post processing

New laser cap

marking system

Monitoring and technological scouting to provide alternatives to (no inks)

PFAS

in machine components

Technology

& Chocolate | Packaging | 1.7

In 2024 the Business Unit achieved an excellent revenue result , an improvement - albeit a slight one - on the previous year’s record-breaking figure. Three key factors aided this outcome: a sizeable 2023 backlog, an upward trend in order acquisitions (most notably in the early part of the year) and an after-sales result 8% higher than that of 2023.

Despite the spiralling increase in the price of cocoa - +450% in the last 12 months alone - the market has remained surprisingly receptive, rewarding SACMI products and vindicating some strategically important upgrades to the range.

From an orders acquisition perspective, performance was strong the first few months of the year, declined mid-year and returned to better-than-expected levels towards the end of 2024. Overall, results were highly positive.

Product Units

The year highlights a to-be-expected rebalancing of orders among the various Product Units, with promising growth in the Chocolate Process and Wrapping segment, where multinational groups are showing renewed interest in large-scale projects.

The Primary & Secondary Packaging and Chocolate Moulding PUs also performed positively, with results exceeding expectations. On the product side, renewing the machine range proved to be a winning strategy (e.g. in the Chocolate Process area) while, in packaging, integration of the Packsud offering

Despite the volatility of raw material prices, the BU continued to grow in 2024, buoyed by a growing order portfolio. The chocolate process & molding, primary and secondary packaging ranges all continued to evolve and expand. Technological adaptation to new low-impact packaging materials also played a pivotal role

led to considerable growth and extended positioning to markets adjacent to those historically served by the SACMI range.

In 2024 Pack Sud inaugurated a new headquarters in Terlizzi (Bari): this new facility has created a real sense of belonging and puts the seal on the company’s successful incorporation into the SACMI Group, a process begun in 2020.

Markets

From a geographical perspective, Eastern Europe is performing extremely dynamically, despite the difficult geopolitical backdrop. Constant customer support - managed via SACMI Packaging & Chocolate Polska, the area’s point of reference - is increasingly crucial to the result.

After several challenging years, the Turkish market is showing signs of recovery: similarly, good performance was observed on Western European and Mexican markets, where investment by major multinationals continues to be vital. Belgium a strategic market in the premium chocolate segment, also enjoyed a solid 2024.

After Sales

The encouraging performance of recent years has also had a positive impact on the after-sales segment, with an accompanying increase in spare parts volumes and maintenance-related services again making significant contributions to the overall result.

Scenarios and prospects

Despite the constraints posed by severe geopolitical instability and abrupt fluctuations in raw material prices, all the major players confirmed their investment plans in 2024. The persistence of such disruption, especially as regards trends in cocoa pricing, may negatively impact the current year, especially in the Chocolate Process & Moulding sector. However, the effects on sectors linked to packaging and end-of-line solutions is likely to be more linear.

In 2024, development of new features on moulding system equipment continued apace (for example, new fast shell forming solutions for filled chocolate shells); testing is now at an advanced stage and should allow us to expand the opportunities available to customers. In the Chocolate Process area, numerous installations and tests have confirmed the quality and reliability of the HFT refiner project: numbers are on the up and it is steadily contributing to business results. More generally, the project has played a role in strengthening SACMI Packaging & Chocolate’s reputation and technical expertise in this segment, laying the foundations for further growth. Thanks to an exclusive drive motor set-up, the high-performance, flexible HFT can refine different chocolate bodies while maintaining maximum efficiency.

The project to expand and consolidate the Pack Sud medium-speed packaging line neared completion in 2024. The first such machine, an HPS 80, has already been installed by a leading Polish customer. In parallel, the project to expand the OPM brand flowpack family continues, starting with the top-of-the-range model, the JT Advance: results are expected to materialise by the end of 2025.

In 2024 a multi-robot snack and biscuit packaging line was successfully installed and started up by a major multinational food company. In this area, ongoing improvements to the range - achieved by focusing on automation and responding to strong market demand for ultra-high performance - continued to be a core element of business strategy.

Optimized grinding and particle fineness.

More versatile control of complex recipes.

Chocolate preparation

Primary & Secondary Packaging

for

packaging line (with 32 robots) successfully installed in 2024

Digitalization

Impact on sustainability

The HTB - a new-concept, electronically-controlled wrapping machine for chocolate tablets - has given impetus to the incorporation of innovative integrated self-diagnostic solutions on the machines. Already being supplied to customers, the solution integrated on the HTB (or the HY7 for pralines) prevents breakdowns thanks to cutting-edge control of the electronic architecture (e.g. by monitoring the energy absorption of key machine components to keep it within set parameters) and the use of AI-powered defect detection, effectively preventing any potential failures.

Consumption

Circular economy

The project aimed at significantly reducing energy consumption across the entire Business Unit machine range continues. More specifically, the KERS system, which recovers kinetic energy during the machine’s passive cycle (with some 20% of energy regenerated) has been integrated on the HTB.

HTB in the Italian Top 5 of Schneider Electric's Sustainability Impact Awards

In 2025, SACMI Packaging & Chocolate’s HTB wrapping machine won the company a Schneider Electric ‘Sustainability Impact Award’. These awards selected the 5 best ‘high-impact sustainability projects’ created by Italian companies. Deploying 40 independent mechatronic drives to achieve a 25% increase in productivity and a parallel 40% reduction in consumption, HTB is an ‘impact maker’ along the entire supply chain, demonstrating that sustainability can drive competitiveness and benefit business.

In secondary packaging, a project for a multinational in the bakery sector deserves highlighting: this involved development of a line of machines able to process secondary packaging (i.e. boxes not in contact with the product) returned by supermarkets. More specifically, a new box forming system was designed (folding box with crash-lock base or American cases). Used in combination with the Multibox solution provided by the Tray Forming Division, this allows boxes to be retrieved and reused several times, making the process significantly more sustainable.

Integrated self-diagnostics and

of regenerated energy

Improved MTBF (mean time between failures) thanks to selfdiagnostics

former configuration for retrieval/reuse of cardboard boxes for the secondary packaging of bakery products

Engineering & Forwarding Logistics | 1.8

For Italiansped, 2024 was again characterized by non-linear performance. The year saw further drops in maritime freight which, starting with Sino-European routes, returned to pre-Covid levels. This trend was highlighted by an approximate 20% fall in the number of TEUs (twenty-foot equivalent container units) dealt with. Air freight volumes, instead, remained stable during the year.

A generalized decline in the propensity to consume (and therefore, invest), aggravated by a tense geopolitical scenario, was a key factor in the shrinkage of international trade. The US presidential election also disrupted markets, driving many buyers to bring forward purchases for fear of the introduction of duties and protectionist barriers. This led to pricing tensions on already-acquired contracts, a problem layered on top of a general increase in shipping costs, itself being driven up by speculative pressure that goes beyond issues concerning Europe-China routing, such as through the Red Sea.

Despite this backdrop, Italiansped still posted an end-of-year result slightly surplus to the budget , albeit slightly down on 2023 and, of course, lower than the exceptional result achieved in 2022, which was fueled by unusually high maritime freight fees. Another contributor to this better-than-expected result was the early completion of two major orders in Africa, one in the Tiles sector, the other in Beverage. More generally, job order profitability and operating margins stayed at appreciable levels, thanks also to the valuable logistics mapping work carried out at various SACMI Group sites, leading to more accurate representation of the costs of Italiansped services.

Italiansped expanded its extra-group business operations in 2024 and continued to play a pioneering role in the industry thanks to expert management of every stage of shipping and new digital tools for tracking, monitoring the carbon footprint and optimizing routes

Revenues from non-Group customers remained quite high in 2024, accounting for around 57% of the total forwarding turnover. This is a source of considerable satisfaction: in addition to boosting the year’s operating results, it confirms Italiansped’s standing as a prominent player in what is a highly competitive sector populated by both extremely large companies and small-scale players. In fact, all the main non-Group customers, who work in vastly different manufacturing areas (mechanics, mobility, oil & gas, etc.), have continued to place their trust in Italiansped. This is because the company combines an ability to handle/manage special shipments with an indepth understanding of industrial processes and carriers and an ability to manage all international shipment authorizations

Indeed, Italiansped's ability to grow its extra-Group orders led it, in 2024 - and even more so in early 2025 - to prepare and implement an ambitious organizational overhaul, characterized by the discontinuation of the Plant Logistics Division and investment to strengthen the sales team in support of the maritime freight sector.

In February 2025, Italiansped representatives attended the WCA Worldwide Conference in Dubai, the goal being to establish new business relationships and explore new growth opportunities in the Gulf area, particularly in Saudi Arabia.

In support of the broader strategy, 2024 also saw Italiansped’s digital evolution proceed apace. Federative tracking , a software solution used to track shipments by collecting data from carriers, has now come into regular operation, generating tangible benefits and high levels of customer satisfaction. The software is used in combination with the ‘ Green Dashboard , a new tool that records, on monitored routes, the shipment’s carbon footprint . Following the successful conclusion of the test phase, the tool became fully operational at the beginning of March 2025.

This year - the one that marks the 55 th anniversary of Italiansped’s founding - begins with the key financial indicators (credits, NFP, etc.) in line with expectations, demonstrating an excellent general balance of accounts. Growing extra-group orders, together with the introduction of new software tools (new CRM program and introduction of the TMS to optimize overland routes and loads), have been crucial drivers, as has the continuous growth, motivation and loyalty of internal resources.

Key technological innovations

Initially launched in 2022, the new federative goods tracking system was upgraded in 2023, offering customers immediate, tangible benefits. Key advantages for the customer include better tracking thanks to the ability of Italiansped-selected suppliers to handle not only tracking but also any changes to the carriers’ software-databases, even as the shipment takes place. What’s more, carriers’ different systems and network nodes (customs, air, sea) are interoperable, ensuring daily tracking updates

Truck routing is crucial, and the new TMS tool optimizes it at all times. The aim of the TMS is to automate optimization of routes and loads the main goal being to saturate vehicle load capacity even while the shipment is in progress: this aims to increase service flexibility, reduce time-to-market, maximize profitability and reduce the environmental impact of transport (i.e. trucks ‘always full’ One of the hypotheses of the project, to be implemented during 2025, is that Italiansped could go on to establish a ‘journey stock exchange’, effectively placing cargo quotas at the disposal of third-party customers.

New IT functions that automatically record each ‘physical’ task (moving a package, picking a load) on the SAP IT system were developed further in 2024. Here, it’s the actual physical action that triggers data recording on the system: this ensures all check lists are always updated and made available to operators. The project - which in 2025 will benefit from implementation of the new SAP system - reinforces a key Italiansped characteristic that sets it apart from other carriers: each collection-delivery is, in fact, documented with real-time photographs, making shipments more transparent and preventing disputes. To date, over 1 million images are available on the Italiansped database, a vital resource for customers worldwide.

Carbon footprint monitoring

Impact on sustainability

In 2024, Italiansped launched and completed a carbon footprint monitoring project that aims to detect GHG emissions for multimodal shipments provided through its suppliers and offered as services (Scope 3).

By monitoring multiple variables – means of transport, route, packaging, weight transported, miles travelled, number of transfers, etc. – the system is able to measure the carbon footprint associated with each individual shipment. The software gathers data and calculations are performed in compliance with ISO 14083:2023 standards. This data is ‘dashboardable’: in short, it can be exported independently/individually by customers or in bulk to provide an accurate picture of suppliers’ environmental performance

(Viability fOr circuLar manufacTuring). Thanks to its expertise and experience in logistics, Italiansped also took part in the Group project ‘VOLT: Viability fOr circuLar manufacTuring’, co-funded by the Italian Ministry of Business and Made in Italy. This aims to model typical shipping supply chain elements to build a carbon footprint calculation algorithm: it also aims to build a database on the carbon footprint of Italiansped-managed shipments. This is crucial to achieving the goals of the project, which seeks to create a Digital Supply Chain Twin: a tool that can be used to assess the performance of an entire supply chain from both an environmental and a social perspective. Italiansped participated in the project in keeping with the Parent Company's Sustainable Procurement Policy

Carbon footprint monitoring

Customer can the carbon footprint of each individual shipment

measurement of suppliers' environmental performance

Shipping data

of environmental and social performance

Project "VOLT"

Scenarios and strategies

Despite the challenging economic outlook in key sectors like ceramics, 2025 looks promising for the business, especially with regard to the introduction of automatic warehouses in the large slab segment. The latter is enjoying considerable success, and SacmiCassioli is well positioned to provide it with a diverse range of solutions that feature high levels of automation and digitalization.

Indeed, the market has acknowledged the competitiveness of SacmiCassioli solutions, which offer high storage volumes and warehouses higher than 12 meters (storage >500,000 square meters). Strategic goals include a strengthening of the lower-volume range, with automation systems specifically designed to be integrated into existing facilities of limited height (horizontal warehouses + LGV storage, solutions with articulated robots and vertical warehouses without

stacker cranes). In non-ceramic sectors – where handling operations typically use pallets – the product portfolio can be considered complete, with potential developments on the storage density front ( 4-way shuttle and multi-level shuttle ).

In addition to increasing order intake across all sectors of interest, other strategic goals for 2025 include the development of solutions that further reduce consumption and the refinement of software platforms to ensure they match workers’ skills on customers’ logistics lines.

In keeping with business development plans, 2025 will see the addition of new team members with wide-ranging roles, especially in technical areas (mechanical and software) and project management. The aim is to raise the market effectiveness of one of SacmiCassioli’s key strengths: its customer support, which begins at the design stage and leads to a clear definition of the KPIs, allowing accurate assessment of ROI timelines and the impact of introducing new production organization/management systems.

The SACMI Imola automatic warehouse in numbers

The new SACMI Imola automatic warehouse will be 78 meters long, 27 meters high and 27 meters wide. The layout will occupy 2,130 m² , plus another 2,000 m² for goods reception.

The warehouse has two distinct storage units , one for boxes (48 levels), the other for pallets (20 levels). The pallet area can contain up to 15,000 pallet spaces, while the box area can hold 24,000 boxes.

All flows are automated: the shuttle carries the incoming pallet to the warehouse where the stacker crane retrieves it and moves it to the desired position. The goods reception area will have up to 8 stations for preparing pallets and 5 for preparing boxes. An automatic conveying system reduces the need for forklift missions, improving efficiency and safety

A tunnel connects the automatic warehouse to the picking zone, with a system of elevators for the pallets and an MLS ( multi-level shuttle ) for the boxes. The entire solution is designed to be high-performance (up to 75 pallets/hour and 480 boxes/hour ) and ergonomic with lift tables and zero-weight manipulators. Flows are controlled by a software simulator that assesses optimal fill/pick routing.

Analysis of energy performance shows that, compared to the existing warehouse, the new facility will save 30% on electricity and 14 toe (tons of oil equivalent) each year, resulting in an annual emissions reduction of 23 tCO 2 eq

Boxes (about a ¼ the size of a pallet) will be made with recycled plastic (from 20% to 50% of the total) by using the caps made with presses tested in the CCM department.

The new warehouse is set to be inaugurated in October 2025 and should be fully operational on the SACMI Imola production site from 2026. Already set up for expansion (30% by volume and 25% by capacity), the warehouse is also designed to support the future growth of the company.

78

27

2,130 2,000

(warehouse) (goods reception)

2

75

480 pallets/h boxes/h

15,000 24,000 types storage units pallet places boxes -30% -14 -23 +50% consumption Boxes

Key technological innovations

With the SacmiCassioli solutions portfolio, factory efficiency can be as high as 90% or more under any condition, reducing consumption and streamlining management. Systems are ‘self-regulating’, limiting human intervention to reset tasks following issues/ alarms.

Also available in self-supporting configurations up to 40 meters high. All solutions are optimized according to the specific sector (e.g. for ceramics, storing slabs by their ‘short side’ optimizes weight distribution on the shelving). With regard to vertical warehouses, industrialization of pick and place systems is under way, the aim being to reduce consumption by using high-performance components.

A new generation of vehicles that can easily be installed in existing facilities of limited height is being developed. Goals include limiting the number of machines in motion and relative consumption, and increasing the appeal of the range, also in the order-to-assembly storage field.

Virtual plant simulations with definition of the relevant KPIs (storage capacity, order composition times, possible optimizations, etc.).

Development of a WMS (warehouse management system) optimization platform that integrates adaptive AI logic. Extension of the application beyond storage to all factory operations, from raw materials to finished products.

Impact on sustainability

Automating internal logistics reduces consumption - systems work at a constant rate and only when necessary - and improves the quality of operational flows. The roadmap for 2025 aims to further reduce the consumption of electromechanical equipment on the lines.

Eliminating tiring, repetitive manual work allows personnel to be reassigned to more skilled tasks, such as proactively correcting the system (i.e. improving future automation). The objective is not just to raise workers’ skill levels and reduce labor costs. Most importantly, the aim is to implement more continuous, ‘modulated process control to achieve a general optimization of OEE and, therefore, of environmental impact, organization and management of production, working conditions and employee safety Automation involves all parts of the process. It includes automatic truck loading systems that can easily be integrated into picking operations to avoid, where possible, the use of manual forklifts, with a corresponding reduction in noise and pollution.

In addition to implementing the latest technology (high-performance, low-consumption machines), the SacmiCassioli plant provides outstanding new plant diagnostics with early warning of any line issues, reducing machine downtime and preventing risks to worker safety.

Key software development goals (WMS) include minimization of picking times by optimizing use of floorspace and spreading order preparation over several days (to avoid, for example, continuous operation of the stacker cranes, which raises consumption).

Creation of energy consumption simulators to ensure correct sizing of motors and define relevant KPIs in terms of consumption and expected sustainability performance. A system, then, designed to facilitate the implementation of sustainability programs and provide customer support for ESG certification.

nevertheless confirmed the soundness of the technology, which will be relaunched during the year once the redesign has been completed.

Other strategic priorities include the design of a new membrane press with proprietary software for applications in wine-making. Set to undergo testing during the 2025 harvest, it will be presented at Simei 2026, with marketing expected to begin in 2026. This press has new SACMI-developed automation features and upgrades that can also be extended to the installed machine pool.

Turning our attention to synergies, the partnership with SACMI to create 3D scale models of wineries using Additive Manufacturing techniques is proving to be highly interesting: unlike anything else available on the market, this solution will add value to Defranceschi sales proposals.

Key technological innovations

Barrique with ceramic bottom

Tanks

This technology underwent further development in 2024, with the single-layer bottom being replaced by a 2-plate ‘sandwich’ with a metal cavity. Supplied by a leading SACMI Tiles customer, the ceramic ‘tiles’ are cut to size and arranged as a sandwich, with ferrous material being inserted into the cavity to conduct heat. This solution makes the bottom much stronger paving the way for the implementation of new tools (SACMI Innovation Lab project) to transmit heat and cold

The new tank containing ceramic plates has been improved, with in-the-field confirmation of the advantages observed during development (micro-oxygenation, controlled porosity). A 5 hectoliter Lab tank was made and the first sale of a 32 hl tank to a major customer in Piedmont was completed.

Aroma presses

Redesign of the press cylinder to make cleaning easier and prevent any cross-contamination between different aromas due to persistence of residues.

3D scale winery models made using Additive Manufacturing techniques make sales offers more appealing.

New polishing machine installed in February 2024 and new laser cutting system, boosting quality and productivity, and reducing the need for reworks.

New ‘sandwich’ construction (dual ceramic skin and metal cavity)

Stronger

Implementation of new digital tools (heat-cold transmission)

Complete wineries

3D scale winery additive manufacturing

SACMI Innovation Lab project models techniques to support the sales team with

Barrique with ceramic bottom

Raw materials Water

Impact on sustainability

With classic barriques, the bottom accounts for some 30% of all the wood used, so using ceramic bottoms means manufacturers avoid using that wood. In turn, since it is extremely durable, the ceramic bottom can be reused when the barrique is worn out, providing further net savings, both economically and environmentally.

A ceramic bottom stops this part of the barrique from absorbing wine, reducing overall product loss by 30% and limiting the need for continuous ‘top-ups’. Ceramic is inert: this stops the wine from becoming astringent as can happen with toasted wooden bottoms, providing the further advantage of better product quality (especially with high-end, high-value wines).

On complete winery projects, Defranceschi’s use of tanks with ‘layered’ walkways and domes reduces wash water requirements. This means water resources are used much more efficiently: washing operations are streamlined, overall water requirements decrease and a solution that recovers 100% of the water can be integrated (e.g. re-use of wash water following purification).

Ceramic barrique bottoms

-30% wood needed to make the barriques

Longer-lasting

barriques

Raw materials

Water

Complete Defranceschi winery

Higher quality

less product dispersion

Less water needed for washing recovery

100%

Following years of vigorous growth, 2024 saw PROTESA continue to strengthen its position. In keeping with the previous year, the result met the business goals of greater effectiveness and efficiency, consolidating existing strategies and positively impacting margins.

In the Energy sector, the trend towards ground-based photovoltaic plants continues, with such systems now accounting for some 60% of revenues (compared to just 10% in 2023 when the trend first emerged).

One of the biggest projects to be completed in 2024 was the ground-mounted array built for CTI ( Cooperativa Trasporti Imola ). Construction of rooftop photovoltaic systems for ceramic companies continued - albeit in more limited numbers compared to 2023 - with prestigious customers including Italgraniti, Nuova Rival and Smalticeram.

The year 2024 also saw the signing of the agreement with the Eurospin supermarket chain: for each new opening, Protesa will build a photovoltaic system, with work also being carried out on existing buildings. In 2024, twelve systems were installed for Eurospin across Italy, with power ratings between 70 and 130 kW. This, among other things, marks an extension of PROTESA's business area previously concentrated in Emilia-Romagna, to the entire country (Puglia, Calabria, Sicily, Sardinia for Eurospin, with further projects finalized or under way in Lazio, Marche, Abruzzo and, in 2025, Campania).

The business has, indeed, shifted up a gear, a fact also underscored by finalization of an agreement with the Stafil Group, with six large systems (approx. 15 MW) constructed in 2024 and a further three planned for this year. Another key 2024 success was the construction of a 9 MW ground-based array in Bondeno di Ferrara, the first for the multi-utility HERA Group. Other plans for 2025 include agri-photovoltaic and hydrogen-photovoltaic systems in Modena).

Already a key provider of both the technology and the expertise needed to complete plant authorization processes PROTESA continued, throughout 2024, to focus on projects that include power storage batteries (allowing clean energy to be used more flexibly and not just at the moment of its actual production).

Launched in 2023, PROTESA continued to hone its approach to customers by drawing on valuable tools such as 3D plant design simulations and sizing calculations. This has proven to be useful for customers as it allows them to assess investment projects: it’s equally useful for PROTESA itself as it ensures proper sizing of offers and the related sales proposal.

In 2024 PROTESA built up its ground-mounted photovoltaic business - which now generates 60% of sales - with new national-scale projects reaching completion. Simulation, 3D prototyping and quality control services also experienced further growth

Remaining on the topic of regulation, PROTESA has upped its appeal in the public and mixed public-private procurement sector by increasing the scope of its SOA Certification (a must for firms working in the public sector) from OG11 (technological systems and energy efficiency) to OG9 category 6. PROTESA is the only SACMI Group company to hold such certification, which grants privileges when participating in public tenders up to a value of 10 million euros.

Services

In design , prototyping and testing , one project in particular stands out: the development of molds for coffee capsules and cellulose fiber closures in support of the SACMI Rigid Packaging Business Unit R&D project. Development and testing of related liquid-repellent treatments (substances to add to cellulose to make it more impermeable) also proceeded apace. In 2024 these services were extended to several areas, such as new types of molds for nutraceutical applications (with results replicable in other businesses) and the completion of a new optimized plant layout for a leading customer in the Beverage industry.

On the D4P (Digital4Product) side, there was growing commitment to virtual and augmented reality applications, as highlighted by the ever-greater quality and value of the partnership with Automotive players (new model launches, training, car configuration, social media, websites and VR presentations of new cars to both markets and dealers). The Virtual Production set - used for marketing purposes and to create training videos from 3D files - has also been improved.

In simulations and calculations the work extended beyond the cellulose project, involving various SACMI machines such as kilns, filtration

systems and sheet forming presses (PCR). On the non-Group market, various machinery and automotive projects relating to fluid dynamic and topological optimizations were pursued.

With regard to contactless surveying and reverse engineering systems, automated surveying has been improved with the aid of collaborative robots, thus expanding surface control and reconstruction services; it has also led to broader use of augmented reality for in-the-field checks on mechanical components and expanded the assistance provided to the Group to create digitalization-derived mathematical models. Environmental surveying has also been strengthened to speed up the reconstruction of industrial layouts. In sports, partnerships continued in the competitive nautical sector; this involved, for example, structural checks on complex carbon fiber components. Projects that lend support to Olympic athletes were also pursued (e.g. iQFOIL performance analysis for the athlete who went on to win the Gold Medal and, in cycling, the development of aerodynamic applications used in the Giro d’Italia and Tour de France ).

Moving on to Quality Control , 2024 saw a transition from traditional checks on pressed materials (in general SACMI ceramic presses) to controls on various structures installed on a vast range of machine types, a transition that has seen PROTESA embrace new technologies. The latter take controls beyond the metrology lab, with quality control now including the identification and use of new in situ instrumentation (on the supplier or customer’s premises): in short, more flexible technology such as optical, portable instruments that can also be used in uncontrolled environments. In 2025 this field will continue to play a crucial role as PROTESA explores new technology (e.g. SUPAR instrumentation testing) and related areas of application.

Key technological innovations

Simulations, calculations and virtual reality

Certification and quality control

Energy

10

The design and engineering of ground-based photovoltaic systems is a growing business. Ten systems were completed in 2024, yielding a total installed power of 28.4 MW In terms of the expertise needed to obtain authorization for new systems, the business focused (and will continue to do so in 2025) on projects that include storage batteries (to allow more flexible use of clean solar energy).

In Energy (simulations to draw up sales offers for new systems) and other sectors (e.g. sports competitions), PROTESA has elevated both its expertise and market reputation, and has worked on numerous projects to develop other SACMI Businesses (one of the most important being research into cellulose fiber molds for the Rigid Packaging sector). Business in the D4P sector (e.g. presentation of cars in virtual and augmented reality) has also doubled.

In 2024, PROTESA obtained SOA certification in OG9 cat. 6. In the quality control field, research and technology scouting operations were initiated to drive diversification of solutions for the SACMI machine range (i.e. from traditional in-house checks on pressed materials to in situ checks on structurework using portable instruments). Energy

Simulations

28.4 new ground-based MW photovoltaic systems completed in 2024 Virtual simulation and prototyping of installed power

3D

280

40.5 -26,900

400 MW tonCO2eq/year MW Total number of photovoltaic systems designed, supplied and managed by PROTESA of installed power in 2024 alone monitoring and control of systems emitted into the atmosphere authorized in total

Responsible governance | 2

and value creation

The SACMI Group consists of 70 manufacturing, distribution and service companies in 25 countries worldwide. The parent company, SACMI Imola, is managed according to the principles of cooperative democracy and the active participation of members. Its organizational model is founded on the involvement of members, management and employees in the decision-making process.

Role of administration, management and control bodies

In managing its organizational operations, the SACMI Group is governed by different bodies, each with a dedicated function. More specifically:

• Members’ Assembly : the Parent Company's Members’ Assembly is a collective body in which corporate will is formed and expressed before being implemented by the Board of Directors.

• Parent Company’s Board of Directors the SACMI Imola Board of Directors has the crucial role of guiding and governing the Group. It is granted the widest powers concerning both routine and special management of SACMI Imola. In particular, the Board is granted full powers to implement and achieve corporate purposes, excepting those reserved for the Members' Assembly by law or by the Articles of Association. The BoD defines development goals, the strategic thrust, Group governance and the make-up of the Boards of Directors of Group companies; it also periodically consults with General Management.

• - General Group Management has the role of coordinating and strategically aligning the Businesses. Focuses on corporate development through coordination of the Businesses; evaluates new projects and opportunities and puts them to the Board of Directors in keeping with strategic guidelines issued by the BoD.

• - General Managers of Business Units responsible for their specific Business, with indirect involvement of Group companies that fall within

Appointed by the Shareholders, the Board of Directors of the Parent Company, SACMI Imola, is supported by bodies with specific expertise in economic, environmental and strategic aspects

the various BUs; they develop plans and ensure achievement of goals established by General Management, all in compliance with company policies/strategies and the rightful autonomy of individual legal entities.

• Group staff : corporate bodies across the various Businesses act in their respective sectors to regulate and harmonize the activities of individual BUs according to policies defined by the Parent Company; they provide support to achieve goals.

• Committees : bodies that engage in strategic discussions and consultancy, leading to the development of projects by specific entities.

Consisting of various BoD and General Management roles, the governance model provides for a Sustainability Board

Board of Directors

The Parent Company’s Board of Directors consists of five members, of whom 1 is male in the 30-50 age bracket and 4 are males in the over-50 age bracket. Each Board Member is selected by vote by the Parent Company’s membership base.

Board of Directors

Paolo Mongardi President

Lorenzo Mimmi Vice-President

Giuliano Airoli | Director

Andrea Vernocchi | Director

Mauro Galeotti | Director

Members of the Board of Directors are selected by vote from within the parent company SACMI IMOLA SC membership base. They receive support from staff with experience in the industries, products and areas in which the Group does business. They also have the skills needed to supervise and manage sustainability.

The Board of Auditors consists of three effective members (of whom 100% are male and aged over 50) and two alternate auditors (one male, one female, of whom one aged between 30 and 50 and one over 50 years old). It has the task of supervising compliance with the law, the statute and the principles of correct administration.

Board of Auditors

Claudio Solferini President

Roberto Chiusoli Auditor

Gianfranco Santilli Auditor

Vladimira Lanzoni Alternate auditor

Matteo Rizzi | Alternate auditor

General Group Management has the role of coordinating and strategically aligning the Businesses . Focuses on corporate development through coordination of the Businesses; evaluates new projects and opportunities and puts them to the Board of Directors in keeping with strategic guidelines issued by the BoD.

DIREZIONE SACMI IMOLA SC SACMI IMOLA SC MANAGEMENT

Group General Manager

Tiles Business Unit General Manager

Tiles Finishing: Cutting, Squaring & Lapping General Manager

Whiteware Business Unit General Manager

Advanced Technologies Business Unit General Manager

Advanced Materials Business Unit General Manager

Rigid Packaging Business Unit General Manager

Packaging & Chocolate Business Unit General Manager

Logistics Engineering & Forwarding (Italiansped) CEO

SacmiCassioli Intralogistics Manager

Wine (Defranceschi) CEO

Energy (Protesa) CEO

Corporate Innovation Manager

Digital Innovation&Automation HUB

CFO - Chief Financial Officer

Accounting & Tax Manager

Operations and Plant Manager

Chief Human Resources and Organization Officer

Assets, Audit and Shareholders Affairs Manager

Stefano Lanzoni

Giovanni Lancieri

Daniele Coralli

Andrea Zaccherini

Matthias Uhl

Vezio Bernardi

Andrea Boggio

Vittorio Romiti

Emilio Cavazzini

Emanuele Mazzini

Emanuele Vassallo

Fiorenzo Parrinello

Matias Ballardini

Giovanni Campolungo

Stefano Foschini

Andrea Grandi*

Marco Ricci

Enrico Fiori

* Andrea Grandi took over as General Manager of the SACMI Group on 1 st January 2025. Simultaneously, Enrico Farina took on the role of Operations and Plant Manager.

SACMI

Mauro Fenzi*

Model of Corporate Governance | 2.3

Efficient management and organizational innovation are SACMI Group hallmarks. In keeping with its cooperative spirit it has, over the years, adapted its governance and corporate organization models to meet the new challenges posed by global markets. In April 2022, the SACMI Imola Board of Directors updated the new Corporate Governance model.

The Group's governance model provides for a Sustainability Board chaired by the Board of Directors. The purpose of this body is to:

• encourage dialogue on developmental trends and sustainability issues so that executive plans can be drawn up

• define strategic lines by identifying key areas for growth and/or sustainability development policies

• approve the Business Plan from a sustainability perspective.

The Sustainability Board includes representatives of the main corporate areas: general management, financial management, human resources, assets, operations management, public relations, corporate QSE (quality, safety, environment) and Group Sustainability.

Moreover, the Sustainability Board works in concert with the Advisory Board and the Strategic Management Board , helping them define and implement strategies and operational plans. These directives are then implemented at operational level through specific bodies linked to General Management. Among these, the Strategic Business Board is responsible for translating general Group strategy into plans suitable for the individual Business Units.

As described in Sustainability Board Regulations, this body is also responsible for supervising the sustainability reporting process, starting with approval of the results of Double Materiality Analysis and then the list of Impacts, Risks and Opportunities pertinent to the SACMI Group.

Lastly, a company ‘Green Team’ has been established in support of Group Sustainability: this broad, multi-skilled working group is responsible for handling sustainability-related data collection and reporting.

In 2024, SACMI began drawing up the first Group Sustainability Plan in compliance with the CSRD (Corporate Sustainability Reporting Directive). This plan includes definitions of strategic pilot projects and ESG training

Sustainability Reporting: towards a Group Sustainability Plan

In 2024, SACMI began defining the first Group Sustainability Plan, in keeping with the move towards CSRD ( Corporate Sustainability Reporting Directive ) standards.

The Plan confirmed the adopted Corporate Governance model and was presented to the Parent Company’s Governing Bodies in early 2025.

As part of this process, the first step was there was to implement progressive alignment with the provisions of the CSRD:

• Gap Analysis : correlation between two different frameworks, the GRI standard adopted for the 2023 Annual Report and the new ESRS standards, to identify improvement/adjustment points. More specifically, analysis involved all the main company areas: Management, Audit, Legal, QSA, etc.

• Double financial and impact materiality : identification of a list of environmental, social and governance-related impacts, risks and opportunities for the Group and its value chain.

• The establishment of a sustainability reporting framework that takes its cue from the guidelines and provisions contained in European Sustainability Reporting Standards (ESRS).

In parallel, the Sustainability Plan definition process involved the following phases:

• benchmark analysis of sustainability plans of both SACMI’s competitors and non-competitors

• creation of a Plan matrix (i.e. the company Departments and Businesses involved)

• material topics and SDGs related to the Department, Business or individual project to be implemented

• examples of benchmark projects

• design of a standardized Project Sheet

• sending Project Sheets to Departments and Businesses (Products)

• compilation and return of Project Sheets to the Sustainability Office

• analysis of sheets received and their integration into the Sustainability Plan.

• creation of a project data file with short-term (<1 year), medium-term (1-5 years), long-term (>5 years) goals

• interviews with contacts to collect all the additional information required.

The adopted Plan refers to United Nations SDGs including the identification of new material topics (double materiality) and IRO (impacts, risks, opportunities) analysis. It concerns both production facilities and the company organizational model.

From a production perspective, each Business Unit was asked to identify a pilot project of strategic ESG importance. This activity was accompanied by the publication of project sheets indicating goals, duration, perimeter, facilities, material topics and amounts. The identified pilot projects mainly concern innovation and energy efficiency . Simultaneously, the relevant actions on Social, HR, Financial, QSA and Governance aspects were set out.

The Sustainability Board

The year 2024 confirmed the Sustainability Board’s role as a supporter of the outlined strategy and saw the achievement of set goals (i.e. extension of reporting goals within the SACMI Group). With more and more people becoming involved, the Green Team now has 140 members with different roles and functions within the SACMI Global Network.

ESG training

Together with the Plan, the provision of specific training courses for all Group personnel (management, technical staff, sales staff, departmental managers, factory workers) on the new CRSD issues and ESRS standards played a central role in governance in 2024.

This Group-wide project involved specific training on the following macro-topics:

• Reporting

• E-procurement

• Circular economy Management training is largely focused on CSRD and strategic sustainability planning

The Green Team received training on reporting and best practices in the sustainability and innovation fields

Training for Group company Managing Directors and Business/Legal Entity Directors instead, focused on the strategic orientation of sustainability, metrics and targets according to ESRS and examples of Sustainability Plans. For the technical, sales, procurement and operations Departments, sustainable procurement policies were explored, with a focus on CR3D, eco-design and the circular economy, B2B-B2C circularity, climate change and the carbon footprint of organization and product.

Completion of this first level of analysis will lead to further refinement of the Plan in 2025, extending the quantity and quality of projects . This will entail definition of end goals, expected impacts and related timing within the framework of the more general SACMI Group ESG strategy. Next steps provide for:

• Completion of mapping of key ESG projects for each individual Group BU and Department.

• Completion of impact mapping (emissions mapping, definition of steps to reduce them and the end goal).

For everyone in the company training focuses on: dissemination of methodologies and tools to integrate sustainability into SACMI's modus operandi , a better understanding of the role and impact each company department has on sustainable innovation processes, raising awareness of ESG risks and opportunities in order to disseminate the fielded strategies.

Activities - both completed and in progress - also include about ten webinars and six ‘podcast’ clips to be released during the year, involving the entire company population.

Mergers & Acquisitions

Over the last few years, digitalization and sustainability have been the key drivers of SACMI's growth strategy in all business areas. They have also guided the Group's Mergers & Acquisition strategy, which aims to expand the range of technologies and services.

One of the most significant 2024 operations was BMR’s acquisition of a majority share in Italvision a leading provider of artificial vision product/process quality control systems.

This proved to be crucial both in terms of completing the range and fully introducing artificial vision and process control into ceramic plants, an aspect also vital from an ESG perspective (less waste, fewer inefficiencies, feedback-adjusted processes and data-driven decision-making).

Integrating sustainability performance into incentive systems

SACMI Imola ha introdotto obiettivi di sicurezza per Responsabili e Preposti dell’area Operations nell’ambito della valutazione di Performance Management.

Statement on due diligence

The SACMI Group places great importance on due diligence relating to sustainability issues This is reflected in the provision of training programs ¹ not just for the Group's administrative, management and control bodies, but the company population as a whole; the aim is to develop a solid, sustainable due diligence process that is capable of complying with current regulations and building added value for the company and its stakeholders.

Information provided to the company's administrative, management and control bodies and the sustainability issues addressed by them

The Sustainability Board is informed about sustainability issues and the Group's material impacts, risks and opportunities by way of six-monthly meetings . At these meetings, the effects of sustainability-related policies and actions implemented by SACMI are discussed and measured according to specific metrics that are periodically updated to better reflect Group priorities and performance.

Strategy, business model and value chain

Through its brands, the SACMI Group designs and markets individual machines and complete plants for the ceramics, packaging, advanced technology and materials industries. It operates worldwide via its network of production, distribution and service companies.

Thanks to its expertise and the ongoing quest for increasingly high-performance technological/ plant engineering solutions, the Group leads the world in the development of less energy-intensive, more environment-friendly production processes within its respective sectors.

Aware that a company's environmental and social responsibility extend beyond its own operating perimeter, the Group is committed to promoting r esponsible conduct along the entire value chain²

Business integrity, certification | 2.4

and management systems

Certification and management systems

Customer satisfaction is a key company goal, hence the early adoption, by the parent company SACMI Imola SC, of an ISO 9001 certified Quality Management System in 1996. In subsequent years certification was extended to subsidiaries.

The commitment to safeguarding the environment, protecting workers’ health and safety, and complying with legal requirements has naturally taken us towards attainment of the respective certifications, namely: ISO 14001 ( Environment ) in 1999 and ISO 45001 ( Health and Safety ) in 2002..

Through its Quality, Safety and Sustainability Policy, the SACMI Group makes environmental safeguards and the health and safety of its workforce key elements of its overall strategy.

1 For further information on ESG training programs - both completed and in progress - see ‘Sustainability Reporting: towards the Group Sustainability Plan’ section of this chapter.

2 For further information on SACMI's policies within the customer-supplier chain, see chap. 6 ‘The value chain’.

EUROELETTRA S.R.L.

ITALIANSPED S.p.A.

PROTESA S.p.A.

RIEDHAMMER GMBH

SACMI CARPMEC S.p.A.

SACMI MOLDS & DIES S.p.A.

SACMI PACKAGING & CHOCOLATE S.p.A.

Sacmi Verona S.p.A.

TECNOS S.R.L

VELOMAT S.R.L.

The year 2022 saw the creation of a Corporate Quality, Safety, Environment and Sustainability framework in order to raise awareness and expertise within the Group on these issues.

A Quality Certification project concerning the Group’s Italian companies is under way. This saw the establishment of a multidisciplinary team, coordinated by the Corporate Quality and Process Improvement body, the aim being to obtain UNI EN ISO 9001 Group certification for all Italian sites by the end of 2026. Each new company acquisition is gradually adapted to the same certification process.

SACMI IMOLA S.C.

In 2024, the SACMI Group again went through the EcoVadis sustainability certification reappraisal process, with results placing it in the market’s top 15% of companies in the Manufacture of special purpose machinery ’ category.

Breaking down the overall score, SACMI was also assessed as being one of the top 28% companies for matters relating to the Environment, 22% for Sustainable Procurement and in the best 8% for aspects relating to Ethics.

Policies for mitigating and adapting to climate change

The SACMI Group has made environmental safeguards a strategic cornerstone, as demonstrated by its Quality, Safety and Sustainability Policy adopted in 2019 and updated in 2023. Via this policy, the Group is committed to improving quality of life for its customers by providing advanced yet sustainable technological solutions that focus on both environmental protection and the continuous innovation of production processes.

Through this policy, then, SACMI manages its material impacts, risks and opportunities in relation to Climate Change . While it applies to all SACMI Group Companies, the policy does not apply to entities belonging to the upstream and downstream value chain.

Management is responsible for ensuring compliance with the aforementioned policy in all company operations. The management body also undertakes to periodically review the document to ensure consistency with the Group's strategic decisions at all times. Lastly, management is responsible for ensuring that the contents of the policy are known both within the Group and among external stakeholders.

As part of its Quality, Safety and Sustainability Policy, the Group has sought to design - and continues to develop - machines and plants that are more energy-efficient to encourage the use of renewable energy reduce greenhouse gas emissions and thus help mitigate climate change. This approach sees the company work alongside customers and partners to accelerate the transition towards more sustainable production models.

Similarly, adaptation to climate change is closely linked to - and being addressed by - Protesa’s REM (Renewable Energy Management) program, which is the core business of the Energy Division. Protesa designs and builds photovoltaic and energy storage systems and provides pre-installation 3D mapping and surveying services that deliver advanced, detailed renderings of the designed system, allowing estimations of output curves and the potential yield of each project.

Lastly, SACMI Imola and Riedhammer have a UNI EN ISO 14001 -certified Environmental Management System to ensure efficient, effective management of all aspects related to environmental safeguards.

Policies relating to company's own workforce

Regard for human rights and social responsibility is such an intrinsic part of corporate culture that both aspects are now an integral part of the company's vision and mission. The SACMI Group’s promotion of social responsibility and respect for human rights is regulated by the Group's Code of Ethics. These principles are adopted into everyday corporate practices such as hiring, wage policies and human resource management methods.

The Group’s approach to managing impacts, risks and opportunities relating to its Own Workforce consists mainly of adopting and applying the principles established by the Code of Ethics ³, employee feedback mechanisms (surveys, focus groups, anonymous reports), whistleblowing procedures 4 and continuous improvement and training programs. Additionally, employees have a variety of channels at their disposal (supervisor, manager or the Human Resources department) should they wish to raise issues, letting them select the most appropriate one on a case-by-case basis. The Group’s key Policies and Regulations for managing material topics correlated to management of its own workforce are described below.

Workplace health and safety

The SACMI Group’s Quality, Safety and Sustainability Policy is designed to address both environmental and workplace health and safety issues 5

To ensure all employees understand and comply with the Policy, the Group has set up centralized communication channels to disseminate the content of this document. Using tools such as newsletters, shared drives and the company intranet, Group employees can easily access key resources/information on the Quality, Safety and Sustainability Policy at any time. These digital communication channels are flanked by more traditional solutions such as periodic meetings with trade union representatives and management meetings. Meetings provide valuable opportunities to share- within the various organizational areas - strategic projects and processes, occupational health and safety issues included.

SACMI Imola SACMI Carpmec and Velomat have a certified occupational health and safety management system as per UNI EN ISO 45001

Diversity and equal opportunities.

Welfare and the work-life balance

Respect for human rights and social responsibility is an essential element of our corporate culture vision and mission and guides the Group’s approach to the crucial issues of ‘Diversity and equal opportunities’, ‘Welfare and the work-life balance’ and ‘Respect for human rights’. Note also that a whistleblowing system is already in place in many Group companies, allowing workers to report unethical or illegal behavior without fear of retaliation 6 Lastly, the SACMI Group ensures that suppliers and contractors adhere to principles established by international regulations and local labor laws by checking their tax contributions (e.g. DURC certificate of regular tax and social security payments).

3 The Group’s Code of Ethics is described in the ‘Corporate Conduct and Corporate Culture Policies’ section of this chapter.

4 For further information on the Whistleblowing system, please refer to the following section, ‘Corporate Conduct and Corporate Culture Policies’.

5 Already described in the ‘Policies for mitigating and adapting to climate change’ section of this chapter.

6 For further information on the Whistleblowing system, please refer to the following section, ‘Corporate Conduct and Corporate Culture Policies’. management systems

Integrated Annual Report 2024 / Governance and organization / Business integrity, certification and

Human rights policy

Observance of personal rights is an integral part of the SACMI governance model. On the basis of this principle - applied at all SACMI Group manufacturing and service sites worldwide - a Code of Ethics has been drawn up.

This approach rejects all forms of discrimination, at any level. In practical terms, this principle means the clear definition and application of workers’ rights, especially as regards:

• the right to privacy in compliance with the GDPR

• continuity and duration of employment significant parameters on a par with quality and performance

• rejection of all forms of forced labor particularly child labor.

In addition to the Code of Ethics, during 2024 the SACMI Group drafted a Human Rights Policy aimed at declaring and demonstrating the Group's commitment to treating people with dignity, fairness and respect.

Through this policy, the organization states its intention to operate responsibly and ensure all its activities - internal and external - are conducted in full compliance with human rights. This means, for example, opposing any form of discrimination , protecting workers’ health and safety, preventing forced/child labor and promoting fair and inclusive working conditions

The policy is based on internationally recognized principles such as the Universal Declaration of Human Rights . It acts as a compass in corporate decision-making, both in management of human resources and in relations with suppliers, customers and local communities.

This Human Rights Policy draft aligns the entire Group with international standards and legislation, which increasingly require companies to be more socially responsible throughout the

Personnel training

The Group is particularly attentive to employee training. Following an initial process that defines training requirements, the Group Academy provides the teaching needed to strengthen employees’ ‘hard’ and ‘soft’ skills 7 Leadership courses are provided to the Group's managerial personnel. These aim to instill an approach that aligns with SACMI's core values, which include an appreciation of diversity as a basis for maintaining lasting internal/external relationships and the achievement of Group goals through integrity and effectiveness

7 For a more detailed look at skills training and the courses offered, see chapter 5.1 ‘Our people’.

entire supply chain . The goal is to validate the Policy by the end of 2025 and apply it effectively at every organizational level, making it an integral part of corporate culture and ensuring its accessibility and comprehensibility internationally.

In keeping with the corporate vision, which takes an inter-generational approach (‘to ensure the Company handed to future generations is an even better one’), and the set of company values, which draws inspiration from, for example, the principle of entrepreneurship (‘freedom with responsibility’), the importance given to a healthy work-life balance is evident in the actions taken/ services provided by the Group to promote people's well-being

Since 2021, Agile Working has been implemented in all SACMI Group Italian companies. This aims to provide a better work-life balance and promote inclusiveness for those with special personal or family needs (where their professions so allow). Employees can also take advantage of Smart Working. This stems from a managerial approach that sees flexibility and working autonomy as key drivers of productivity and enhancers of environmental, social and economic sustainability.

Workers’ well-being is also prioritized at economic-regulatory level: for several years, the SACMI Group has provided a digital platform that gives workers tax-advantaged access to family services (kindergarten, social security, education) and personal services (gym, shopping vouchers, cultural initiatives).

The last cornerstone of this model - and an integral part of the new business management system - sees the introduction of a performance appraisal system. A system that focuses not just on results but also on people’s observance of company values . In a model that aims to achieve full meritocracy, the performance appraisal system will provide a foundation for all decisions relating to opportunities for advancement and development within the organization.

SACMI has also introduced a corporate Performance Management process to assess and enhance each employee’s contribution to the achievement of company goals and compliance with the Group’s values. This system aims to develop a culture of personal engagement and motivation by assessing attainment of personal goals and the adoption of actions that mirror Group values. Every year, this process ends with appraisal meetings between employees and their managers so that each person’s conduct and results can be discussed.

To address the issues of ‘Privacy and Cybersecurity’, the SACMI Group has drafted a Regulation that governs Group Policy vis-à-vis the use of IT and telecommunications tools – both hardware and software, removable drives included – and establishes Information Security safeguards that Group employees must implement as they carry out their work. The Regulation takes its cue from the ISO 27001 standard, the provisions of Italian Legislative Decree 231/2001 on the Administrative Responsibility of Legal Entities and the provisions of applicable National Collective Labor Agreements. This document is used in application of current regulations on personal data processing and protection, such as the General Data Protection Regulation (EU Regulation 2016/679) and the Privacy Code (Italian Legislative Decree no. 196/2003).

The regulation in question applies to all SACMI Users (i.e. Group employees and comparable subjects). The term ‘users’ encompasses temporary workers, interns, trainees, external personnel and the Group’s suppliers and customers , to whom SACMI may assign, according to requirements, one or more IT or telecommunications tools, subject to approval by the legal representative of the Group Company concerned. No incidents or legal action related to IT security were reported in 2024.

cs . This document formalizes those behavioral principles and values that, in keeping with regulatory principles, distinguish the organization and businesses of all SACMI Group companies. The Group Code of Ethics was drawn up to take into account the interests of the Group’s primary stakeholders and is therefore binding for corporate bodies, management, employees, external partners, suppliers and all those having relations with the Group. The document was updated in 2023 and approved by the Board of Directors.

This Code of Ethics is part of the Organization, Management and Control Model (MOGC) that the parent company SACMI Imola adopted in 2008 pursuant to Italian Legislative Decree 231/2001 . This Model constitutes a set of rules and procedures that govern company activities and its internal and external relations. It aims to prevent or contrast any crimes sanctioned by the above law (e.g. corruption, extortion, falsification of accounts, money laundering, violation of workplace health and safety or environmental standards). The Organizational Model also places a clear emphasis on health and safety, to which a specific section is dedicated.

Both the Code of Ethics and the MOGC are publicly available and can be consulted on the Group's website, both in Italian and English. Group employees can consult these documents at any time via the company intranet. In 2024, as in previous years, a training course on topics covered by Legislative Decree 231/2001 was provided to all Group employees.

Corporate Conduct and Corporate Culture Policies

Code of Ethics and Organizational, Managerial and Control model

To manage the company’s impacts and its own material risks and opportunities connected to ethics and integrity in ‘Business Conduct’, the SACMI Group has adopted its own Code of Ethi-

The areas most exposed to risk of corruption are sales and purchasing . For this reason, a reference to the Code of Ethics and the MOGC is included in the ‘General Terms and Conditions’ of the sales contracts that Group companies stipulate with their customers 8

8 In relations with its suppliers, the commitments SACMI undertakes within the MOGC and the Code of Ethics and shares with the suppliers themselves are part of a ‘Sustainable Procurement Policy’ and are described in greater detail in chapter 4, ‘Suppliers’.

Whistleblowing

In 2023, in compliance with the standards implementing EU Directive 2019/1937 9 the Group set up a specific channel for reporting any violations or unlawful conduct within the company The company intranet provides access to the ‘Legality Whistleblowing’ platform, which lets users report any unlawful conduct within the Group’s Italian, Spanish and German companies 10. The platform ensures the whistleblower’s identity/ data and the contents of the report remain confidential . The person responsible for managing the reports - an individual outside the Group who is bound by confidentiality - can only see the contents of the reports via the platform and remains unaware of the whistleblower’s identity. To further guarantee the whistleblower’s anonymity, the platform only allows reports to be sent via private, non-company email addresses, devices or networks.

Reports are investigated in accordance with the Whistleblowing Policy , which can be consulted via the ‘Legality Whistleblowing’ platform. The Corruption Prevention Officer is responsible for verifying the circumstances described in each report. Verification is performed in compliance with the principles of impartiality and confidentiality and may involve taking appropriate action, which may involve interviewing the whistleblower or any other persons with information pertaining to the report. To this end, the Corruption Prevention Officer may avail himself/herself of the relevant corporate bodies and, where necessary, external authorities (including the Guardia di Finanza, the Provincial Labor Directorate, the Municipal Police Command, the Tax Revenue Agency). In 2024 there were no Whistleblowing reports in the SACMI Group.

Preventing and recognizing corruption and extortion

SACMI’s anti-corruption training has no set schedule: training is provided on a continuous basis according to the specific needs of individual departments In keeping with previous years, 2024 saw a total of 829 Group employees attend a training course that addressed all issues relating to the provisions of Legislative Decree 231/2001, including the topic of corruption- and extortion-related crime prevention . The course lasted one hour and was taught online. The course was also attended by members of the administrative, management and control bodies, and all Group employees in positions of responsibility who are, logically, considered to be the most exposed to any risk of corruption. The latter also receive special annual training on the basis of their specific roles in the Group.

To date, the Group, as regards anti-corruption or training issues, refers to the provisions of the Group's Code of Ethics and Whistleblowing Policy. Any reports of unlawful conduct in the area of corruption are made through the ‘ Legality Whistleblowing platform and handled in accordance with the Whistleblowing Policy described in ‘Corporate Conduct and Corporate Culture Policies’ section.

Cases of active

and passive corruption

In 2024, no reports of improper conduct pertaining to corruption or extortion were received , nor were any convictions or fines levied for violations of active/passive corruption laws, nor were there any incidents along the value chain that directly involved SACMI Group personnel.

9 More specifically, in the case of the SACMI Group: the 24/2023 ‘Whistleblowing Decree’ in Italy, Las Enmiendas 121/000123 of the Proyecto de Ley reguladora de la protección in Spain and the Whistleblower Protection Act (HinSchG) in Germany.

10 Any illicit behaviour within other Group Companies can be reported via the email address whistleblowing@sacmigroup.com, published in the Whistleblowing section of the Group website. management systems

Integrated Annual Report 2024 / Governance and organization / Business integrity, certification and

Innovation and research

Innovation is a key driver at SACMI. It is vital to development of the Businesses in terms of the quality of the technologies and services offered; it also lays the groundwork for new skills with which to enact strategy on the basis of the scenarios/priorities defined by the Governance model.

Once again, 2024 saw SACMI take its innovation strategy in two main directions. The first targeted a strengthening of the facilities, skills and governance linked to digital innovation.

Established in 2022, the Digital Innovation&Automation HUB grew during subsequent years to become a true ‘ Digital Business Partner ’, helping individual SACMI Businesses achieve their innovation goals in terms of developing digital&automation enabling technologies.

In 2023 SACMI also strengthened the actions and strategies of the Corporate Innovation Directorate . Established in 2023, the latter has the task of directing and coordinating policies (also regarding partnerships and opportunities) and establishing stable relationships/synergies between methods, infrastructures, people and processes.

Coordinated by the Corporate Innovation Directorate, SACMI’s innovation strategy is based on a permanent connection between methodology, projects, facilities and processes.

Digital Innovation&Automation

Just as the factory transforms raw materials and components into finished machines/products, the SACMI Digital Innovation&Automation HUB (DAH) transforms ‘bits’: it takes on the digital innovation challenges facing the Businesses and defines pathways that lead from ‘idea’ to ‘ proof of concept ’, prototype and, ultimately, a finished product that will join the individual businesses’ range of technologies and services, helping to drive their sales strategies and provide responses to new market needs.

Why a hub? The first reason, which underlies the implemented strategy, concerns the intrinsic nature of digital technologies: unlike ‘vertical’ innovation (a specific understanding of materials and processes), which remains the responsibility of individual businesses, digital innovation is, by definition, a cross-sector matter. Pooling digital experiences, skills and facilities therefore generates efficiency both in terms of resources used and the effectiveness of the proposed solutions.

In 2024, the DAH reinforced its role as a Digital Business Partner, taking a market-oriented approach to help SACMI Businesses achieve their innovation priorities. The year also saw The Group focus on developing its ‘digital culture’

More specifically, the HUB operates on the following families of enabling technologies:

• Development of software and IoT technology with in-Cloud applications

• Development of embedded systems

• Production plant digitalization

• Production process discrete-event simulation

• Robotics and self-driving vehicles

• Virtual prototyping

• Augmented/virtual reality

• Numerical simulation

• Data analysis and artificial intelligence with a sharp focus on generative AI based on LLM (large language models)

DAH functions and workflow

As Digital Business Partner the hub:

• works alongside the personnel of the individual Business Units, tracing a path from product idea to ‘workshop’.

• follows development of the specific systems and sub-systems that the Business Units integrate into their products (e.g. CRONO software for digital printing, HERE software for plant supervision, the Leviga BMR simulator, etc.).

• directly develops/provides technology (e.g. new AI-based digital tools to support Customer Service).

• contributes to the development of new skills via ‘digital contamination’ by promoting a digital culture both within individual businesses and throughout the Group.

Digital Business Agent

With the introduction of the role of Digital Agent workflows with the BUs became more ‘fluid’ in 2024. The Digital Agent is a key Business Unit resource who provides a point of contact with the Digital Hub.

With this approach, it’s always the Business that drives innovation on the basis of its understanding of customers and market trends. If conveyed within the Business, any enhancement of product or process digitalization becomes simpler, more meaningful with respect to goals/fields of application and, therefore, potentially more effective.

From this perspective, the Digital Hub becomes a BU-powered enabler . The Digital Agent also has the task of Advocacy within the BU and promotes initiatives that implement change and introduce digital technologies.

With the introduction of this role in 2024, a new budget process was established for Digital Hub projects: thanks to the Digital Agents, each BU set out a list of goals in which the Digital Hub is involved.

The Digital Hub begins task planning by defining a goal. Usually, this goal has two key features: on the one hand, simplicity , and, on the other, sufficient planning elasticity (i.e. tolerance to on-the-fly changes in priority, which are always referred to the steering committee). Maintaining constant alignment between Business and Digital Hub is a must as it allows changes in priority - which are often market-driven - to be dealt with effectively.

Budget 2025: process

Meeting between Digital Business Agent / Digital Agent and Digital Hub

DBA/DA gather each BU’s goals

Steering Committee DAH, sharing of goals

Example of a goal

Standardize the quality of content and usability of machine documentation, regardless of legal entity, to provide interactive spare parts catalogues that can be consulted in the e-spares and e-doc sections of S.P.A.C.E.

Q4 A

Characteristics:

• priority assigned by the BU (A, B, C)

• urgency (Q1, Q2,...)

• requesting BU contact person

• Digital Hub contact person

At organizational level, 2024 saw the technical documentation team - which previously focused almost exclusively on SACMI Imola - take on a more corporate role ( Corporate Technical Documentation ), This team has thus become a business partner that has the task of defining guidelines and/or tools to help Business Units obtain:

• legally compliant technical documentation

• optimization (reduction) of technical documentation production/management costs

• digitalization of content usage on the S.P.A.C.E. portal as an enabler of customer services.

‘Digital 2025’ goals by BU

FIRMWARE EMBEDDED

DESIGN

DOCUMENTATION

AND PROCESSES (SMART FACTORY)

AND ADVANCED CONTROLS

The role of DAH from an ESG perspective: examples of implemented projects

Initially established to streamline SACMI's innovation strategy in the automation and digital fields (to augment the quality, productivity, versatility and efficiency of technologies and services offered by the Businesses), the Digital Innovation & Automation HUB is now a strategic driver of the digital innovation that seeks to achieve specific social, environmental and governance sustainability goals

A good example of this is the development of digital tools that measure the efficiency and

iTools Edge

The result of SACMI's decades of experience in industrial automation, iTools Edge is a library of configurable software components: these are used to create specific multi-platform applications that can be tailored to customers’ needs.

premises and, more generally, the correlated data generated by technicians who work on the plant. In this sense, the Data Platform is more than a virtual place where all machine- or plant-relevant data is collected (and saved): it’s also the area in which algorithms and AI analyze that data to build indicators that help Customer Service identify

problems and create new solutions. The philosophy is as follows: “customers don’t need to call us with their problem, we already know about it and we inform them”.

Assistance chatbot

In 2025 SACMI aims to release a chatbot to streamline searches within the machine-related database (e.g. technical documentation, assistance tickets). Initially, the chatbot will be used by Customer Service teams in the different Businesses. This means that, as they provide assistance, they benefit not just from the information contained in the manuals but also from the experience gained from previous tasks and tickets.

Spare parts AI

This application of Artificial Intelligence establishes the price of a spare part on the basis of technical drawings and certain construction information.

Key applications, released during 2023 and developed in 2024 and early 2025, include:

• simulation library for the primary packaging lines produced by SACMI Packaging & Chocolate, the goal being to simulate the productivity of a certain layout and identify any bottlenecks in advance: this info is shared with the customer and used to smooth interaction with the supplier.

• LGV (self-driving vehicle) route optimization software to reduce inefficiencies, shorten downtimes and boost plant availability. The first few months of 2025 also saw the release of software for estimators that defines the number of vehicles needed to meet the needs of a given plant.

Generative artificial intelligence solutions based on LLM (large language models) again played a major role in 2024: these provide customer service operators with valuable support (by delivering uniformity of procedure and faster, data-driven responses that are independent of individual operators’ experience and perceptiveness) Significant resources were channeled into these projects in 2024, both internally and through participation in funded projects (ILUMINAS).

Development of a tracking system for ceramic plants is also under way; here, the goal is to create a ‘digital identity card’ of the ceramic product (this could also contain relevant ESG data such as the environmental footprint of each tile, quantity of energy consumed, etc.).

The Digital Hub remains open to external partnerships with companies and universities on both project-related and research-related activities. For example, 2024 saw the conclusion of projects with external partners concerning the development of:

• generative artificial intelligence tools to provide semi-automatic responses to assistance tickets.

• study and optimization of the flow of goods and warehouse stocks

• in intralogistics (SacmiCassioli Intralogistics), the design of algorithms to optimize allocation of goods in a warehouse (to speed up picking and placing).

SACMI Digital Days

Held in 2024, the SACMI Digital Days consisted of 5 meetings organized by the Digital Hub, open to all Italian employees of the SACMI Group. This had two main goals:

• to explain how the Digital Hub is organized and what it does, with each team receiving a dedicated overview to better understand their daily tasks and support the Business effectively.

• to expand the Group’s digital culture. More specifically, this meant raising awareness of AI how it can be applied in the company and the relative benefits, and elevating our understanding of ‘data’ as the bedrock on which future competitive advantages are built.

Corporate Innovation R&D | 3.2

Innovation is inextricably linked to SACMI’s future success. It is a core company value. Cutting-edge Research and Development in which the SACMI Group invests heavily every year, allows it to develop unique solutions that benefit company and customers alike, are sustainable and responsive to constantly changing market needs.

In 2023, SACMI created the Corporate Innovation Directorate to drive company growth and development. Its mission: to instill a culture of innovation throughout the Group.

In order to stimulate, more specifically, disruptive innovation (i.e. truly transformative changes that impact products, technologies and processes), in 2024 the Corporate Innovation Directorate pursued several lines of action, such as:

• definition and implementation of standard Group innovation process, integrated into the various BUs.

• Centralized, coordinated management of Research & Development financing and intellectual property protection

• Development of partnerships with Universities and Innovation Centers with research bodies and customer-partners themselves

• The promotion of training and skills development to create a fertile, dynamic, innovative environment that drives people’s entrepreneurial capacity and creative potential: ultimately, a climate in which errors are perceived as a source of collective learning.

With a view to cross-fertilization , the Directorate also seeks to identify enabling technologies and content that apply to multiple Business Units. It does this by proposing coordinated, synergic actions to achieve the SACMI Group’s environmental, economic and social sustainability goals.

Summing up, the mission of the Corporate Innovation Directorate may be defined as a quest to nurture and implement new ideas that align with SACMI's strategic goals , maximizing their value and success. The Directorate aims to be a catalyst of ideas, trends and technologies for the Group: it coordinates actions with the various Business Units and assimilates innovation by funding Research & Development and protecting intellectual property rights, also through partnerships with Universities and Research Centers. All this occurs by way of structured corporate methodologies and processes that drive innovation yet still retain enough agility to encourage creativity without holding the organization back.

In 2024, work began on a ‘strategic project portfolio’ to promote coordination with the Business Units and integrate Research & Development and intellectual property protection funding.

The main challenge in 2025: keeping the process alive and dynamic, facilitating its dissemination and encouraging individuals to be innovation-proactive . This method is valuable because it encourages entrepreneurship, defines concepts explicitly and tests basic technologies quickly, with limited investment; it makes the start of the process more agile as it is done with the awareness that projects may be successful or fail at these early stages.

The hope is that these actions will bring about the conditions that drive professional development, resulting in well-trained personnel who are ready to face expected and, more importantly, unexpected challenges.

SACMI innovation priorities

The Corporate Innovation Directorate also has the task of implementing an effective, future-proof model and, in outlining its actuation, defining innovation scenarios and priorities.

SACMI has always worked alongside customers to develop products, technologies and services that keep them at the forefront of a fast-changing market that displays certain trends:

• Sustainability Reducing environmental impact is an essential competitiveness factor. Customers of the future will increasingly demand technologies and products that are sustainable.

• Digitalization . Digitalization is the future: it simply cannot be ignored.

In response, SACMI has identified the innovation priorities that have, in general, led to different, growing branches of research and development:

• Materials . Research into new materials made from renewable sources (e.g. cellulose caps and containers) or recycled materials (rPET, rHDPE, etc.).

• Energy . New hydrogen and electric kilns to speed up achievement of climate neutrality goals. Comprehensive systems for heat recovery, fume treatment and lower emissions.

• Circular economy . Systems for total recovery of water, waste and any other raw material that can be fed back into the production process.

• Application of digital tools in scientific research. This area includes SACMI’s purchase of a license to use Discovery , a sophisticated IT document research platform that involves the uploading and analysis of selected patent documents. The platform has the ability to draw on various literature, news, project and patent databases to explore the technology landscape and identify trends. This AI-powered tool simplifies and summarizes technical-scientific literature and allows advanced browsing. Initially tested by the Rigid Packaging business unit to assess the system’s potential, use of the tool should soon be extended to the rest of the company.

Projects

People

Innovation is powered by people: they lie at the center of a system that seeks to create permanent synergies between methodologies, infrastructure projects and processes.

To create an effective, future-focused innovation model, the SACMI Corporate Innovation Directorate acts to:

• promote greater awareness of the latest challenges field at all company levels.

• bring about conditions that drive professional development, resulting in well-trained personnel who are ready to face expected and, more importantly, unexpected challenges.

• invest in the establishment of facilities where people can access long-term training and make the most of their innate talents.

The bedrock of this work is the definition of structured corporate methodologies and processes that drive project development yet still retain enough agility to encourage creativity and free up people’s innovative potential.

SACMI also pursues innovation in partnership with public/private bodies and institutions. Doing so intercepts every opportunity to create a company-wide innovation model that has positive synergies-repercussions throughout the local economic ecosystem (schools, universities, customers, institutions, stakeholders).

In this context, the Global Innovation Engineering Assessment ’ PhD, developed in collaboration with the Department of Management of Bologna University, seeks to identify which New Product Development (NPD) techniques have a positive impact on innovation in relation to levels of market uncertainty and technology.

Strategic Projects Portfolio

In 2024, the Corporate Innovation Directorate sought to define a structured process for the Management of Innovation Projects promoting an active approach to catalyze innovation itself throughout the SACMI Group. This process dovetails with fundraising activities and intellectual property rights protection.

The Innovation Project Management Process has been implemented operationally and monitoring of Strategic Project Portfolio progress has begun. Following a running-in phase consisting of four ‘trailblazer’ cases, thanks to which the process was successfully tested and the Dashboard set-up finalized, the intention is to extend the process to all the Group’s strategic innovation projects so as to build up an overview of the Projects Portfolio and provide the Bus with strategic leveraging tools.

Over these months, the main achievement was the creation of a common language within the Group that saw the adoption of a single, shared process to complete everyday tasks. Training days on the Innovation Project Management Process, on Agile and Design Thinking, and Intellectual Property began at the end of 2024 and will continue throughout 2025.

The Labs

From an infrastructure perspective, the Imola Research Center and the various R&D Labs established within the individual Business Units are key drivers of SACMI innovation.

The Imola Research Center

Founded in 1989, this facility is the epicenter of SACMI innovation. With almost 300 highly specialized technicians and researchers, its direct research lends support to customers at every stage of product development, driving the evolution of the ‘innovation ecosystem’ that encompasses the company, the community and partner companies.

The SACMI Research Center is on the National Register of research laboratories drawn up by the Italian Ministry of University and Research. While organized as a set of technological labs and research units within the individual Business Units and Group companies, it also takes on the task (as in the case of the SACMI Innovation Lab) of achieving across-the-board R&D Automation goals for all the Businesses.

SACMI Tiles Lab

This Lab performs research into ceramic processes in connection with the ongoing development of production line machines, especially forming and decoration technologies. The Tiles Lab - in concert with technical facilities and the Experimental Department - develops new tile manufacturing technologies. This places SACMI in a position to offer customers innovative product design services to convert aesthetic needs into high-quality industrial products made with modern sustainable technology.

The Lab - which has a scaled-down ceramic production line - is equipped with state-of-theart instruments and highly qualified technical personnel. It offers customers comprehensive technological facilities (e.g. analysis and characterization of raw materials and body recipes). It provides problem-solving services, on-site assistance and specialist training in the use of SACMI machines and plants. Customers can also contact the Lab for their product development and market analysis requirements.

SACMI Rigid Packaging Technologies Lab

This facility researches the materials used in rigid packaging (cap, preform, container) production processes. In recent years, the Lab has focused on developing ever-lighter, higher-performing caps and containers ( lightweighting ), guiding customers towards the adoption of new standards and working alongside the main international certifying facilities and bodies (e.g. CETIE).

Carried out in partnership with key academic institutions and industry associations, the work includes research into new eco-compatible materials (recycled PET and HDPE, cellulose, ‘hybrid’ plastics and the use of natural fibers such as cellulose) and the development of applications/prototypes with a view to industrialization. A laboratory shared with the University of Bologna works alongside the Rigid Packaging Technologies Lab.

SACMI Innovation Lab

Operational since 2017 and officially inaugurated in 2019 - with co-funding from the Emilia-Romagna tender to attract investment in advanced Industry 4.0 sectors - the SACMI Innovation Lab was established to develop and disseminate 4.0 enabling technologies throughout the company in the vast field of Automation R&D digital simulation and software development.

More specifically, SACMI Innovation Lab:

• develops innovative digital printing systems, designing Embedded Hardware and Firmware solutions and software applications optimized for color control.

• develops methodologies and skills applicable in the Robotics & Industrial Automation field, with a sharp focus on automation systems, robotics and mobile robotics.

• performs TRL (technological readiness level) investigations into the industrial applicability of research results, also from an ‘open innovation’ perspective, according to the needs of the SACMI Business Units.

• builds multi-level simulation systems (from mechatronic to process) to seek out new technologies to drive digitalization in processes and other areas.

With co-financing from the Emilia-Romagna tender to attract investment in advanced Industry 4.0 sectors at an end, the Lab continues to operate within the Digital Innovation & Automation Hub and coordinate with the Corporate Innovation Directorate. The Digital R&D Relationship Manager plays a valuable ‘link’ role.

SACMI Digital Decoration Lab

The Lab is co-funded by the ‘Activity 5.1 Local competitiveness infrastructure development support’ regional tender, part of the Regional Manufacturing Projects Program. By expanding its equipment pool and skills set, it aims to establish an engineering and applied research facility for the digital surface decoration field.

The LAB was established in 2021 in Casalgrande (Reggio Emilia) at the SACMI Tech headquarters, where most of SACMI’s digital decoration technology (primarily ceramic but also metal) development takes place.

This facility, fully operational since 2022, centers on the new pilot plant area where both SACMI client companies and raw material suppliers (e.g. pigments, inks, materials) can test and trial the materials.

Again, the Lab’s mission centers on operating as a trait d'union between corporate businesses, suppliers and potential customers. However, it also works closely alongside the regional research system to speed up response times and transfer innovation to businesses. Moreover, the Lab’s partnership with the nearby University of Modena and Reggio Emilia sees undergraduate interns gain valuable in-company experience.

SACMI Sanitaryware Lab

Like the Tiles Lab, the SACMI Sanitaryware Lab and pilot plant offer a comprehensive set of technological support services, from body/glaze formulation to mold-making, all the way to the finished product. More specifically, the Lab offers technological support: this consists of comprehensive know-how on raw materials and body recipes and advanced services for sustainability (R&D to optimize water, energy and raw material consumption). This is followed by on-site assistance during the plant start-up, industrialization and testing phases and Digital Product Development services that span from creation of models/molds to industrial testing on the pilot plant and the development of innovative process solutions. The Sanitaryware Lab also follows the development of new SACMI technologies applied to sanitaryware production, including testing and trialing of pre-industrialization prototypes

Resources, projects, patenting

With reference to innovation priorities and the different lines of research and development that SACMI pursues in response to changing scenarios, some of the projects being developed within the various Business Units are illustrated below¹.

SACMI’s strategic framework prioritizes sustainability as it is a key driver of both competitiveness and excellence. This strategy focuses on methodologies that substantially improve infrastructure energy efficiency, limit water consumption and lead to the adoption of waste recycling practices while safeguarding the unique characteristics of ‘Made in Italy products.

Furthermore, SACMI promotes the use of renewable energy and pioneering technology to reduce its environmental impact : a practical, tangible commitment to a sustainable future.

No less significant are the projects that focus on building a circular economy, especially in the Rigid Packaging sector. Here, research focuses on increasingly sustainable , recyclable container materials. Considerable resources have been channeled into building a pilot version of a continuous automatic machine that can sustainably dry-mold caps made from 100%-recyclable natural fibers.

In parallel, projects designed to mitigate climate change proceed apace, most notably in the Tiles sector, where work continues to focus on reducing plant CO 2 emissions . For example, this involves replacing the fossil fuels used on kins and dryers with hydrogen and electric heating.

Drawing on PNRR funding, SACMI already has proof of concept on ever-thinner tiles that may also have floor applications.

Further projects aim to reduce water consumption in production processes and allow its complete re-use by way of innovative ultra-filtration systems, applicable on both the Whiteware and

Tile factories. Notable investments include the design and implementation of innovative ceramic tile/slab firing/drying solutions powered by renewables or electricity.

It should be noted that all three ‘dimensions’ of sustainability - environmental, social and economic - are vital in ceramics (which uses energy-intensive production processes), an industry in which maintaining one’s competitive position is closely tied to innovative advances on the three ESG fronts.

Furthermore, SACMI has continued to invest in the Additive Manufacturing center, which manufactures parts necessary for production, by purchasing additional machines. Such investment doesn’t just improve production efficiency: it also facilitates the adoption of advanced, sustainable technologies that reduce waste and optimize use of resources.

Taken as a whole, all these projects represent a significant step towards a greener future. In parallel, several technical-scientific partnerships with universities, research centers and technical studios have been established and/or renewed. These cover multiple areas, such as research and development, technology scouting and the lab tests that are part of SACMI's strategic development. Note also that the Framework Agreement between SACMI and Bologna University was renewed in 2024².

The SACMI Group has participated in numerous collaborative funded projects at regional, national and European level.

Intensive research and innovation is also evident in the high number of new patent applications: 276 new inventions were patented in 2024 alone and there are some 2,600 active patents out of the nearly 6,000 filed in the Group’s history (more than one patent per employee).

1 For information on the main ongoing projects, please refer to section 3.4 of this chapter.

2 For a detailed description of the main points of the Agreement, refer to section 3.3, ‘Partnerships’, Universities and research institutions section.

In 2024, SACMI was also selected to take part in the Italy, land of Patents. Successful Inventions and Innovations exhibition organized by the Italian Ministry of Business. Marking the 140th anniversary of the Italian Patent and Trademark Office (UIBM), this event - jointly organized with the Central State Archives - highlighted Italian companies that have, by patenting groundbreaking ideas, provided us with projects and inventions that have decisively benefited their respective fields and society as a whole.

As in 2023, in 2024 the EPO (European Patent Office) again listed SACMI as one of the ‘ top ten ’ Italian companies by number of European patents filed. For SACMI, this constitutes further acknowledgement of its ability to innovate on an international scale: that acknowledgement is won through heavy investment in Research & Development and continuous efforts to nurture new, future-shaping ideas.

R&D – Resources and projects³

R&D projects costs/total R&D projects costs (%)

N. of patent applications filed in the

(overall number)

Patenting costs incurred by the parent company in 2024, maintenance and consultancy costs for the Business Units included, amounted to 3,905,000 euro

3 The data for 2023 in the table refers to the following Italian companies of the SACMI Group: SACMI Imola, SACMI Tech, SACMI Forni, SACMI Beverage, Iprel, Gaiotto; for 2024 the boundary encompasses SACMI Imola, SACMI Tech, SACMI Forni, Iprel and Gaiotto. Note that ‘Costs of financed R&D projects/total costs of R&D projects (%)’ was obtained from the weighted average of the specific values of the individual companies.

Brevetti

Partnerships | 3.3

Associations

SACMI plays an active role in several associations to promote the principles of cooperation a culture of quality and innovation , and sustainability

More specifically, SACMI adheres to Legacoop, Legacoop Produzione e Servizi, ACIMAC (Association of Italian Ceramic Machine and Equipment Constructors), UCIMA (Union of Italian Constructors of Automatic Packaging Machines), AMAPLAST (National Association of Manufacturers of Machines and Molds for Plastic and Rubber), UCIMU-Systems for manufacturing, ANIPLA (National Italian Automation Association) and is a member of ANFIMA (National Association of Manufacturers of Metallic and Related Packaging).

Furthermore, SACMI works alongside pan-European and transnational professional associations that seek to promote advanced research and training in their respective industries.

SACMI is a member of the Italian Ceramic Society (I.Cer.S.). Founded in 1972, the latter is a key reference point for the worldwide dissemination of Italian ceramic technology and plant engineering expertise.

It also adheres to the Brussels-based European Powder Metallurgy Association (EPMA), which unites key players in the European sintered products industry. Participation as a member of the Association Council involves SACMI in the development of further training and research projects, alongside leading European universities and research facilities. In the same field, further partnerships were established in 2024 with: Center For Powder Metallurgy; Japan Power Metallurgy Association; Metal Powder Industries Federation; Apmi International (American Powder Metallurgy Institute).

Since 2019 SACMI has sat on the board of AIM (Italian Association of Science and Macromolecule Technology), a non-profit association that promotes training and development in the polymers and macromolecules field. Once again, this is a key partnership that involves us in innovative research projects on, for example, new bio-compatible materials and the development of higher-performance, less energy-intensive processes.

SACMI advances the dissemination of international standards in the Rigid Packaging field through its membership of CETIE, the international association that promotes, on a voluntary basis, innovation and technical standardization in the sector. SACMI is a partner of Plastic Recyclers Europe, PETCore Europe and the American Plastic Industry Association.

Partnerships include participation in industry associations, both pan-European and transnational. These promote research and training, and establish new standards and opportunities as regards sustainable materials and technologies

It is also a partner of the European Machine Vision Association (EMVA), a non-profit association representing the European vision systems industry. In Italy, SACMI is a partner of Unsider, the UNI-federated body that draws up regulations and standards for the steel sector (steel and cast iron).

Research consortia

SACMI works with several key research institutes and consortia. These include the Bi-Rex Competence Center of Bologna (Big Data Innovation & Research EXcellence), Mist-ER (Mechatronics, Biomedical and ICT industrial research and technology transfer lab) and the InterMech Mo.Re, CRIT Research Interdepartmental Center (consortium based in Vignola, founded as a vehicle for regional manufacturing excellence to promote collaborative innovation technological scouting/research and lend support in accessing the best national/EU funding opportunities).

SACMI is one of the private founding members of the Circular and Sustainable Made in Italy foundation, established in late 2022; this is responsible for implementing and managing the Extended ‘MICS Made in Italy Circular and Sustainable’ Partnership funded as part of the National Recovery and Resilience Plan (PNRR). The Extended Partnership involves private companies, universities and public bodies. It aims to co-finance basic research projects in areas concerning economic, environmental and social sustainability, the circular economy, and the digitalization of materials, products, services, processes, factories and production chains, the main focus being on ‘Made in Italy’ industries.

SACMI is an associate of the National Smart Factory Cluster. The latter (which includes companies, business associations, local government bodies, universities and research bodies/institutes) seeks to actuate a research- and innovation-based strategy to sharpen the competitiveness of the Italian manufacturing system.

Moreover, since 2021 it has been a member of two Regional Clusters. These aim to bolster the ability of the Emilia-Romagna innovation system to engage in collaborative research and technology transfer as defined in the Regional Intelligent Specialization Strategies: CLUST-ER MECH (which seeks to hone competitiveness in the mechatronics and engine sector) and CLUST-ER INNOVATE (which concentrates on service innovation).

Collaborative research, regional and national clusters. SACMI is also a partner of the ‘Circular and Sustainable Made in Italy’ project, funded by the National Recovery and Resilience Plan (PNRR)

Universities and research bodies

SACMI has about 100 partnerships with universities, institutes and research consortia in Italy and other countries.

At university level, SACMI has close research ties with: Alma Mater Studiorum of Bologna (Departments of Civil Engineering, Chemistry, Environment and Materials, Industrial Engineering, Electrical power and Information, AlmaCube, CIRI MAM, UNIBO Inter-departmental institute of Industrial research). It also enjoys valuable partnerships with the Università di Modena e Reggio Emilia (UNIMORE) Politecnico di Milano , the Università Cattolica del Sacro Cuore and LIUC, the universities of Parma, Università del Piemonte Orientale , Università Politecnica delle Marche , and the universities of Ferrara, Padua, Trento, Salerno, Cassino, Lecce, Sassari, Palermo, Pavia, Brescia, Università del Salento Università di Bolzano and Università della Calabria

Over 100 partnerships with Italian and foreign universities to develop strategic business projects. In 2024 the Framework Agreement with Bologna University was renewed.

SACMI works with CNR (National Research Council). More specifically, it partners with CNR ISTEC (technology of ceramic materials) and CNR INO (National Optics Center). It also works with Bologna Ceramic Center, EcamRicert (Vicenza), Iseven Servizi (Modena) which performs microbiological analysis in the plastics-packaging field, AlmaPlasma (Unibo spin-off concerning plastic surface treatment), the CRA center (Rome, dairy sector) and the National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA). Partnerships with Cineca (high performance computing), Nanoprom (nanotechnologies), ITI (Italian Technological Industry) and the Il sentiero International Campus industrial research center are also ongoing.

SACMI also engages with several foreign institutions, such as the German Fraunhofer Institut (structural strength and reliability of systems department), IREQ (steels, large components), KIMW ( Kunststoff Institut Lüdenscheid ), the University of Wageningen, the Spanish ITC ( Instituto de Tecnología Cerámica ), the French Université Grenoble Alpes the University of Magdeburg and Montreal Polytechnic. There are also internal synergies with Alpha Ceramics (a Germany-based Group company operating in the advanced ceramics and new materials sectors) and the Laboratory/Competence Center of German subsidiary Sama Gmbh (tableware).

In 2024, SACMI renewed the Framework Agreement with Bologna University that involves cooperation in areas that range from research, innovation, technological development and scientific consultancy to higher education and career guidance . The five-year protocol renews a successful educational-scientific collaboration model; numerous synergies have been built over the years, lending support to SACMI's business model.

This latest Agreement renews the one signed in 2018 between SACMI and the Alma Mater. Research and technology transfer retain key roles in a partnership that takes various forms: joint participation in regional, national and international research tenders/programs, the establishment of shared infrastructure (labs) and scientific publications.

Training is another cornerstone of collaboration. This takes the form of technical-specialist partnerships in specific fields or in multi-disciplinary areas. It aims to benefit both SACMI employees by drawing on the University's skills (i.e. needs-based development of internal skills) and gives graduates and undergraduates access to thesis, internship and post-graduate opportunities within SACMI’s Italian and international network (no less than 146 students from the University of Bologna have joined the company on specific projects since 2021).

The Agreement also involved the renewal of the Coordination Committee set up to identify priorities and monitor the progress of joint projects.

This committee has played a key role in making the most of SACMI-Unibo collaboration on many projects over these years: from the first research and industrial property agreements, dating back to the 2000s, to the establishment, in 2012 following the agreement between SACMI and Unibo’s CIRI-MAM (Interdepartmental Center for Advanced Mechanics and Materials), of a joint laboratory within the Rigid Packaging Laboratory. The latter started out by characterizing materials developed with proprietary SACMI CCM technology (compression-type production of plastic caps) and, over the years, led to various offshoot lines of research.

Main ongoing funded projects | 3.4

SACMI is involved in numerous R&D projects, co-organized with national and international partners.

More specifically, these projects are co-financed by the Region of Emilia-Romagna, the Ministry of Enterprise and Made in Italy (MIMIT), the Ministry of Universities and Research (MUR) and national Competence Centers. Further projects are supported by the European Commission via the Horizon Europe program.

These projects generally run for several years. The most significant to be financed during 2020 include:

Multibusiness

The Pressing and shaping technologies for powders and fibers aimed at the use of sustainable solutions project - selected as part of the 2023 tender for ‘Attraction of Investment in the Emilia-Romagna Region’ (in implementation of Law 14/2014) and co-financed by the ERDF 2021-2027 Program as per priorities defined by Regional Smart Specialization Strategy S3 - aims to identify new manufacturing technologies for the ceramic industry and the emerging powder-based electric battery supply chain.

This 3-year project, launched in 2024, targets one of the regional economy’s most important supply chains, still characterized as ‘hard-to-abate’ in terms of energy consumption and emissions. Its scope encompasses the development of sustainable powder processing solutions and the production of dry powder glazes, which significantly reduce the consumption of materials, energy and water. This will involve the establishment of pilot lines to test machine components and so improve their performance in terms of durability, efficiency and, therefore, consumption.

The project draws on SACMI’s extensive pressing and shaping know-how as regards both the powders used to make industrial machine parts/components and those used in ceramic compaction processes (clays, yet also glazes, composites and fibers) for applications in Tiles, Sanitaryware, Tableware and Advanced Materials (i.e. non-ceramic areas, such as anode powders for lithium batteries).

Just as importantly, the project aims to promote cross-contamination and sustainable innovation among the different SACMI Business Units. Pooling of powder and fiber processing skills will allow the implementation of eco-compatible solutions that reduce the environmental costs of process and product, matters strategically important to the entire SACMI Group.

Industrial design and automation, the circular economy, new materials, AI and process digital twins are just some of the areas SACMI explores with its partners. It also participates in co-funded regional, national and European research and innovation programs

Ceramics

SACMI is a partner of the START (Sustainable Data-Driven Manufacturing) project promoted by MIMIT. This aims to create and test technological solutions/operational protocols to convert ‘smart factories’ into ‘intelligent factories’ with 5.0 capabilities. This goal will be pursued in specific steps that include: the development of a ‘digital twin’ model equipped with both AI and ‘bio-intelligence’ capabilities, able to manage bidirectional data/information flows between the physical and virtual realities of the factory; construction of a statistical model to describe interactions between materials, processes and products; development of an AI-powered application framework specifically for the ceramic industry (the main goal being to make it more sustainable through more efficient management of natural and energy resources) and testing of such AI algorithms in an operational environment; design of Intelligent Factory architecture using Abductive Design Thinking; extending the concept to the building itself by designing ceramic cladding equipped with sensors to monitor indoor and outdoor environmental parameters.

mit) as part of the wider ‘Innovation Agreements’ – also includes the construction of an objective data/functions benchmark to provide a ‘digital representation’ of the supply chain. This will extend Digital Supply Chain Twin capabilities by integrating both sustainability and supply chain risk management perspectives (Circular Design Thinking) into the tool. Ultimately, the aim is to test the model as a basis of the new ‘Circular and Intelligent Supply Chain’.

The GLUELESS (Digital Tool for the Design and Evaluation of Glueless Ceramic Solutions) project, instead, aims to develop digital services for industrial design and research into more sustainable, energy-efficient tiles. This project is financed by the ‘Extended MICS Made in Italy Circular and Sustainable Partnership’ using PNNR funds, with SACMI Imola as lead partner in close collaboration with the University of Bologna. Launched in 2023, the project includes the development of new digital tools to provide guidance for industrial designers (e.g. 3D layouts) on the basis of the input material, simulation of finished tile properties included.

The VOLT (Viability for circular manufacturing) project aims to create and test a digital twin of the supply chain. By simulating the performance of the ceramic industry procurement system, VOLT seeks to enable a more sustainable (circular), more intelligent value chain. This general goal will be pursued by targeting several specific ones, such as: a definition of the supply system’s reshoring strategies (database indicating available resources and assessments of their sustainability), the construction of a supply chain risk calculation tool, and the investigation of new ‘tailor made’ traceable chemical compounds –and their testing at pre-industrial scale – that might help the ceramic industry in reformulating bodies. Launched in 2024, this 3-year project –co-funded by the Italian Ministry of Business (Mi-

The PHOTOCURABLE (Innovative Photocurable Formulations for AM Application in the Production of Ceramic Tiles Molds) project, instead, is dedicated to molds and is, again, co-funded by PNNR-MUR. The main purpose of the project, begun in 2023, is to identify photo-curing liquid formulations suitable for the production of ceramic tile molds that are also manageable from a digital mold manufacturing perspective. PHOTOCURABLE also involves the building of a scale prototype to test the new formulations, obtained using high-temperature DOD technology. The goal is to take mold performance beyond the current state of the art (e.g. abrasion resistance) and expedite replacement of fossil-origin resins (monomers and oligomers) with chemical products attainable from renewable resources.

Advanced Materials

In 2024 SACMI completed the CPM project, part of the MISE-Horizon 2020 PON co-financing scheme, which focuses on the construction of complex gears by compacting metal powders. Project goals include the development of a technique that maximizes density near the sides of the sintered teeth and the refinement of further innovative ‘one-step’ machining techniques for such parts that are faster and more reliable than conventional ones. The project follows ‘circular economy’ guidelines, from reduced use of resources (as highlighted by the powder pressing and sintering process which, unlike chipping-type removal processes, generates no processing scrap) to circular use of the materials and services used for sampling.

Rigid Packaging

FIBER-CAP (part of the MIMIT ‘Agreements for innovation’ tender), instead, focuses on technology for the sustainable dry molding of rigid packaging caps made from 100% recyclable natural fiber. This project - set to end in 2025 - aims to overcome current limitations on fiber treatment and dry forming processes. It also centers on the functionalization of materials, design and construction of molds/molding machines (based on CCM technology) and includes the set-up of an ‘industrial’ performance’ pilot line that can be used to perform on-product testing.

project encompasses every step, from collection of HDPE caps from PET beverage bottles to selection, decontamination and production of the regranulated material. This includes definition of the ‘recipe’ (the quantity of rHDPE able to be used in the mixture) to ensure correct cap performance and compliance with required specifications.4

Digital Innovation & Automation

The VISUALXR project (Advanced Virtual Tools for Digital Acquisition and Visual/Haptic XR Interaction for Textile Industry), funded by MICS with the University of Bologna as lead partner, was completed in 2024. The goal was to improve the remote co-design processes that characterize the textile industry by developing a calibrated, augmented reality-guided workflow to perform digital acquisition and processing (including definition of the IT architecture to save and share the obtained results and thus shorten new product-project development times). SACMI Businesses are interested as the project refers to the possibility of ‘digital tactile perception’. Introducing tactile perception into augmented reality may have applications in ‘low relief’ objects such as tiles or food containers. The tactile concept is particularly pertinent to Virtual Training, a topic strategic both to the SACMI Group businesses and the external market.

The ILUMINAS (Large language model after-sales) project - led by SACMI Imola, and part of the Bi-Rex 2023 tender - focuses on the opportunities offered by Artificial Intelligence to develop a demonstrator, ‘trained’ by way of machine use and maintenance manuals and the relative task/ repair sheets. This aims to develop an after-sales (Customer Service employees) support model (and tool) based on machine learning and LLM models, rationalizing and codifying responses without compromising the dynamism and flexibility of the service. Ultimately, the goal is to integrate the tool into ticketing management by developing an IT assistant that provides operators with decision-making and troubleshooting support.

This mainly concerns automated packaging lines. More specifically, it involves the testing of innovative handling and co-manipulating techniques for liquid containers. Technical challenges include the intrinsic nature of liquids - i.e. the fluidity of their volume - and the need to develop and test high-speed motion planning and control techniques to minimize in-container ‘sloshing’. The ultimate goal of the project is to create a demonstrator with a broad application range.

With PLAAS+ co-financed by Bi-Rex, the aim is to develop next-gen machine control panels (PLC as-a-service) by combining consolidated traditional automation methods with the benefits of Edge and Cloud systems (speed, scalability, reliability, etc.). To address the topic of IT-OT interaction in industrial automation settings, it was necessary to begin with the heterogeneity of existing devices and from there move to the definition of a Data Model to standardize data representation and ensure interoperability and integration in the Edge environment.

The EVOCATION project - again co-funded by BiRex - seeks to develop innovative, cost-effective sensors that monitor machine diagnostic parameters and load conditions. This aims to leverage the capacity of monitoring, diagnostics and prediction techniques - which rely on advanced sensors - to improve process efficiency and quality while significantly boosting competitiveness. Current limits include the ‘acquisition cost’ of certain items of information: this could be reduced by implementing latest-generation sensors and defining methodologies and analysis techniques that incorporate AI elements.

Another key strategic development branch of the Rigid Packaging BU is the rHDPE project (product and process development for a food grade high-density polyethylene cap-to-cap recycling chain) that received the support of the MIMIT ‘Green New Deal’ Program. The project’s goal is the development of a circular polyolefins supply chain suitable for use with food; this will include the establishment of an industrial-scale line capable of generating rHDPE pellets approved for food use. From a supply chain perspective, the

With SACMI Imola as lead partner and the involvement of Iprel, the POWOPS project (part of the Bi-Rex tender) aims to create a cloud-native software development platform for the manufacturing sector that follows a platform-as-a-service model. The goal of the project, which will end in 2025, is to respond to the manufacturing industry's need to develop versatile, fault-resistant, scalable applications in an OT-to-Cloud environment. The adopted approach favors the use of modern commercially available IT tools and emerging methodologies, notably the development of a DevOps methodology adaptable to the Operations environment (control of automatic operations and processes according to strict security parameters).

In the field of industrial machine eco-design, SACMI is a partner of QUEST , co-financed by Bi-Rex. The main goal is to develop a systemic approach, based on shared methods, to continuously improve aspects linked to the life-cycle management of automatic wrapping and packaging machines with a view to sustainability.. This project aims to develop a specific environmental impact assessment method (based on LCSA, Life Cycle Sustainability Assessment) for these machines and explore how it can be applied in other areas.

The purpose of the BLOCH4MAT (Blockchain technology for ceramic and construction materials supply chain) is to analyze methods for applying blockchain to processes that involve manufacturers of construction materials such as ceramics, bricks and composite materials. Part of the Fesr Emilia-Romagna 2021-2027 regional program and supported by partners Centro Ceramico, Laboratorio Teknehub (Unife), Ciri EC (Unibo) and CFR, BLOCH4MAT aims to create a blockchain model that can be adapted to specific cases and workflows. It seeks to do this by involving material producers at both the model definition and test phases, also in combination with other tools and digitalization processes for construction materials.

The MATRIX project (co-financed by the Bi-Rex 2023 call, collaborative robotics area), instead, focuses on robotic handling/conveying of liquids for high-performance industrial applications.

C4SI (Cybersecurity for smart industry), another project supported by the PR-FESR Emilia-Romagna (with partners Cris-Unimore, Ciri-Ict Unibo, Mechlav and Crit), aims to strengthen the cybersecurity shield around production plants and the connected machinery. One of the ambitions of

4 Per una descrizione dettagliata del progetto, si veda cap. 1.6, “Rigid Packaging”.

the model being developed is to extend its capabilities to match the needs of small and medium-sized manufacturing companies operating in Emilia-Romagna. Initially, the goal is to raise awareness about the topic and the relative regulations (EU Machinery Regulation) and then move on to design and develop prototype solutions that will apply universally acknowledged best IT practices in an Operations context.

to integrate a DevOps tool into the platform; this can be supplied to companies as-a-service and accessed remotely, making the entire process more efficient and reducing the cost of maintaining the procedures.

The CCS4CER (Carbon capture storage and CO 2 mineralization for the ceramic industry) project focuses on developing innovative CO 2 capture and mineralization processes. Part of the Fesr Program and partnered by Centro Ceramico, Romagna tech, Leap and Ciri-Frame (Unibo), the project has a 3-stage development framework: identification of the most suitable CO2 capture technologies starting with the processes used on actual industrial sites in Emilia-Romagna, relative experimental tests on mineralization of CO 2 both in the gaseous and liquid phases starting from ceramic process waste, feasibility tests for the reuse of such waste to produce ‘carbon-negative’ construction materials (clinker, cement, mortars, concrete, etc.).

INSIDE stands for “Industrial IoT standard for interoperable devices of Emilia-Romagna”. This project focuses on the interoperability and security of IoT connectivity systems (wireless sensors and networks) as they can expose users to new risks that were previously the exclusive prerogative of IT. Co-financed by the Fesr-ER Program (partners Mister Redox, Consorzio Musp, Consorzio T3 Lab), INSIDE is consistent with Regional Smart Specialization Strategy S3 and aims to define universal standards/data formats to allow faster, scalable, safer development of a customized IoT that fits with the regional industrial landscape. It also includes the creation of a prototype wireless sensor with integrated AI.

DAREDEVIL (Digital twins to support DevOps in industrial environments), instead, aims to help businesses transition to digital methods. Supported by PR-FESR Emilia-Romagna in association with partners Bi-Rex, Ciri Ict and Ciri Mam (Unibo), and DataRiver, the project seeks to develop an open-source, flexible Virtual Commissioning platform to provide companies with ‘Digital Twins-enabled’ and ‘AI-powered’ modeling tools to build a plant emulator software capable of interacting with the machine PLC devices. The emulator is designed to work as a PLC ‘black box’, providing it with a virtualized test environment in which to run checks on the efficiency and effectiveness of control routines. Moreover, the plan is

METALH2 (Fesr-ER Program) has the goal of developing sustainable, circular food packaging coatings. Food packaging sustainability can, in fact, be pursued through the optimization of surface coating technologies. In addition to reducing the environmental impact of coatings by identifying more sustainable techniques, the project seeks to improve the barrier performance of the packaging itself by giving conventional materials an antimicrobial capability. It also endeavors to optimize the entire supply chain by assessing the economic viability of the identified solutions prior to full industrialization.

Improving manufacturing company productivity while boosting the resilience and environmental sustainability of production processes: this, in short, is the goal of RESISTO a project suppor-

ted by the FESR-ER Program. Starting with the digitalization of corporate processes (Cloud/Edge computing, Big Data, AI, etc.), it aims to develop an innovative production and supply chain management system based on the use of Digital Twins and on decisions guided by the big data that new tools now place at our disposal. Developed along Industry 5.0 lines, the model seeks to make the most of new digital systems that smooth interaction with the manufacturing workforce.

tive modular and customizable hw/sw system for sensor-based analysis of the workplace and the objects to be handled; a robot ‘self-programming’ system that starts out with the assigned task/problem. The technological results meet Gaiotto’s aim of developing and marketing a new generation of industrial robots with simple, fast, adaptive programming.

SACMI Forni & Filter

PROXIMA (Proximity machinery through distributed Augmented Reality HMI layers for empowering industrial operators in low resource scenarios) aims to achieve ‘sustainable’ design/ interaction of digital skills training solutions. Supported by the Horizon Europe XR2LEARN Program, the aim is to develop, prototype and field-test an Augmented Reality training kit. This will let industry trainers implement a contextual, human-centered experience that can be adapted to specific production contexts (spatial guidance within the production environment, training on machines and equipment, risk assessment, etc.). It also seeks to raise confidence and autonomy when managing such systems on highly automated lines.

Gaiotto

Selected as part of the Emilia-Romagna investment attractiveness tender (Italian Regional Law 14/2014), Gaiotto's Development of Advanced Programming Techniques for Industrial Robots ’ project ended in 2024. Aimed at developing a new generation of industrial robots with greater flexibility and easier programming, it sought to extend their applicability in industrial contexts. More specifically, the following have been fine-tuned: an offline programming system and self-learning programming algorithms; the rela-

AMAZZONIA - a project to reduce CO 2 emissions from ceramic products, supported by MIMIT (‘Innovation Agreements’) with SACMI Forni & Filter as partner - continued into 2024. Its goal: to implement solutions that reduce environmental impact, especially in terms of heat consumption (analysis of technological cycles, new ‘green’ fuels, optimized plants and raw materials, new processing techniques linked to in-depth energy research).

More specifically, the project focuses on kilns and dryers, exploring innovative technological solutions and power sources (such as hydrogen and renewable-based electric) and creating the relative prototypes. Ultimately, the aim is to validate any attainable environmental benefits via LCA (life-cycle assessment).

After the first 100% hydrogen kiln and its pure hydrogen storage station, completed in 2023, SACMI Forni & Filter presented the first 100% electric kiln prototype in 2024, again accompanying development with industrial tests on real products to optimize quality. Dryer developments proceeded in parallel, with the fine-tuning and marketing of new ‘dual fuel’ solutions. The prevailing aim is to speed up decarbonization of the ceramic industry by exploring various technological alternatives that might exploit the growing availability of green energy (hydrogen and electricity from renewable sources).

Protesa

Other projects

Further R&D projects - not the subject of co-funding - concerning the use of resources and the circular economy were launched or continued in 2024:

• A SACMI Packaging & Chocolate project to adapt/upgrade packaging machines so they can handle new paper-based and/or bioplastic-based wrapping materials allowing them to gradually replace the previous plastic-based ones. In the medium term, the project will also draw on innovations proposed by the wrapping material producers with whom the company works daily. One of its aims is to improve the competitive positioning of the range and mitigate, albeit indirectly, the pollution that stems from the dispersion of plastics and microplastics into the environment. The aim is to develop adequate, practicable technological solutions by involving the entire supply chain (wrapping material suppliers, technology providers, customers). Carried out in coordination with the Business Management team, the project also involves the R&D Lab of the subsidiary SACMI Packaging & Chocolate Swiss (the Technical Office of which focuses exclusively on primary packaging) and Packsud.

Open innovation projects

Open innovation as an opportunity to identify enabling technologies and share their development not just inside the company but within the wider local ‘ecosystem’ (schools, universities, businesses) is an integral part of SACMI's innovation strategy. The year’s initiatives and projects included:

ER LABS

SACMI also works alongside the Emilia-Romagna Laboratories that responded to the call to tender for strategic industrial research projects targeting priority areas of the Smart Specialization Strategy (S3). These projects include BLOCH4MAT, C4SI, CCS4CER, DAREDEVIL, INSIDE, METALH2 and RESISTO. While SACMI itself receives no funding (only the Laboratories are funded), its interest in the results sees it provide human resources, tools and equipment.

OPER.CBI

From late 2023 to early 2024, SACMI took part in the OPER.CBI open innovation challenge set up by Almacube. The aim was to develop fresh in-the-field experience to give substance to the ‘open innovation’ concept. The project involved the selection of six undergraduates studying a range of subjects at the universities of Bologna, Ferrara, Modena and Reggio Emilia; their task was to identify new solutions to problems concerning SACMI businesses.

By taking a broad, interdisciplinary approach (the students came from quite different fields, spanning the technical and humanistic), the ‘challenge’ was not limited to the search for specific answers to specific questions: it also sought to identify a wider enabling technology, at both technical and organizational level, that might be applicable to the different businesses.

The challenge was posed as follows: “How can we help research and development employees make the most of networking as a tool to foster connections and opportunities?” Subject areas (the problem ‘assigned’ to the students) included powder molding/forming, with cross-Business Unit applicability in Tiles, Advanced Materials and Rigid Packaging.

The hallmarks of the project were its specific methodology, the step-by-step sharing of results and the establishment of work groups. Moreover, in February 2024 the ‘final milestone’ of the project saw a SACMI delegation visit the CERN facility in Geneva, where the potential of AI to read/analyze complex data tools/ systems was explored.

SACMI Innovation Lab

2022 completed the SACMI Innovation Lab co-financing phase, part of a tender to attract investment in advanced Industry 4.0 sectors within Emilia-Romagna.

This involved the development of adaptive production systems, intelligent molds, advanced sensors: this took place within the SACMI Digital Automation & Innovation HUB and in alignment with Corporate Innovation Directorate projects.

Even though co-financing came to an end in 2022, the Lab continues to pursue its institutional mission - to bring the world of research closer to industry from an open innovation perspective - within the Digital Innovation & Automation Hub. Several projects moved forward in 2024, including:

University of Bologna

In partnership with the University of Bologna (Department of Electrical Energy and Information Engineering), the company launched a research project to optimize AGV and AMR routing. Then, with the Department of Computer Science and Engineering, the Lab was involved in two doctorates on computer vision and knowledge injection. It also collaborated with ALMA AI (Unibo's AI research institute). SACMI also collaborated with DIFA (Department of Physics and Astronomy) on a project exploring new sensors for the process industry. Alongside DISI (Department of IT, Science and Engineering), SACMI activated the new ‘Building a knowledge base: integration, extraction and organization of key information for advanced machine learning’ doctorate.

InterMech - Unimore

A PhD project to develop advanced material handling and conveying systems within manufacturing facilities is ongoing with the InterMech – Uni Mo.Re. Interdepartmental Research Center on Advanced Mechanics and Motor Engineering of the University of Modena and Reggio Emilia. In the robotics-intralogistics field, Gaiotto is working on a second project alongside Tecnopolo di Reggio Emilia - Industria Tecnologica Italiana.

University of Ferrara

With the University of Ferrara, the Lab cooperates with the Department of Physics and Earth Sciences (sensors and semiconductors based on nano-structured metal oxides for environmental and industrial applications) and with the Department of Computer and Automation Engineering.

SACMI and the Italian Roadmap for the Future of Manufacturing

Working alongside the Intelligent Factory Cluster, SACMI helped define new guidelines published in the volume The Future of Manufacturing: The Italian Roadmap (2024). This initiative, which involved over 200 experts from businesses, universities, research bodies and regional institutions, sought to outline the strategic and technological priorities needed to develop a sustainable, resilient, digitalized national manufacturing system.

SACMI provided support by helping to draft the contents: a member of personnel participated directly in the GTTS6 Technical-Scientific Group, focused on Strategic Action Line LI6 Evolving and Resilient Production

The document illustrates seven strategic action lines, each of which identifies research and innovation priorities (RIPs) aimed at honing the competitiveness of Italian industry in response to emerging challenges. These include:

• LI6 – Evolving and Resilient Production : development of highly reconfigurable, adaptive production systems that react rapidly to critical events and market discontinuities, thanks also to heightened operational autonomy and ‘distributed’ intelligence. Priorities include advanced modeling and simulation to manage evolutionary production systems, development of highly reconfigurable hardware and software, integration of modular wireless smart devices and decentralized manufacturing asset monitoring and inspection solutions. The main goal is ‘ operational resilience ’, that is, the ability of manufacturing systems to dynamically adapt to change without affecting efficiency, quality or safety.

CNR Bologna technical hub - MistER

Various in-the-field projects with MistER - Smart Innovation are in progress. These include the production of unconventional sensors. The project to analyze materials using THz technology - to reveal defects or changes in the density of materials such as plastic, paper, ceramics and fabrics - was concluded.

Clust-ER Mechatronics and Motor Engineering

Clust-ER Mechatronics and Motor Engineering promotes product and process innovations to strengthen regional competitiveness. It operates through eight Value Chains that include Digital and Advanced Manufacturing, Automation and Robotics, and Sustainable Engines and Vehicles. Key goals include integration, sustainability and innovation of processes and products to foster partnerships and interoperability.

• LI2 – Industrial sustainability : definition of production process developmental pathways in keeping with circular economy principles to reduce the environmental footprint, improve energy efficiency and promote the reuse and regeneration of resources. The scope is vast and includes both products and the plants and business models.

• LI7 – Digital platforms, modeling, AI, cybersecurity development of innovative digital architectures to control, model and optimize industrial processes by promoting the adoption of tools that use big data, AI and secure collaborative platforms.

• LI3 – Enhancing human resources in factories proposes organizational models and technologies to streamline human-machine interaction in order to enhance skills, improve well-being and promote inclusion in the factories of the future.

• LI1 – Personalized production development of flexible, reactive industrial solutions that can actively integrate customers into production processes and thus broaden the scope for customizing products and technologies.

• LI4 – High-efficiency manufacturing : research into technologies and models to create a ‘zero defect’ factory that deploys real-time monitoring and predictive plant maintenance systems.

• LI5 – Innovative production processes : investigation of ‘evolutionary scenarios’ for manufacturing technology, such as ‘hybrid processes’, additive manufacturing and bio-inspired processes.

The entire project followed a participatory, integrated methodology that actively involved companies, regional players and technology suppliers via consultations, workshops and statistical analyses in keeping with Italian and European scenarios/policies. The thus-defined strategic framework does not end with the publication of the volume as it provides for future updates, the activation of research and innovation projects and integration with regional, national and European policies. The roadmap will form the basis for subsequent discussions, using both theoretical and operational models, and implementation of the outlined strategies via the direct involvement of partner companies.

Clust-ER Innovate

Clust-ER Innovate seeks to strengthen regional competitiveness through six Value Chains: Big Data, IoT, Cybersecurity, IT Services, Logistics and Digital Ethics. Strategic goals include improving cyberspace security, promoting innovative platforms, supporting Smart Cities, developing ‘sensing’ technologies and designing scalable, efficient services.

CFI – Intelligent Factory Cluster

The ‘Intelligent Factory’ National Technology Cluster is an association made up of large and medium-small enterprises, universities, research centers, business associations and other stakeholders involved in advanced manufacturing. The association - which fosters the innovation and specialization of national manufacturing systems - is recognized by MIUR as a driver of sustainable economic growth throughout Italy. In 2024 the draft for ‘The Future of Manufacturing: The Italian Roadmap’ was completed. Towards the end of the year, work groups were established to integrate the ‘The Draghi report and the manufacturing perspective’ document.

5

CRIT

As a CRIT partner, in 2024 SACMI helped organize over 40 work groups, seminars, webinars, technology tours, workshops and demonstrations on key topics such as Automation & Robotics, Advanced Materials, Big Data & AI, and Advanced Factory Management.

More specifically, the work groups established in 2024 looked into Additive Manufacturing, the 5.0 Transition Plan, PFAS regulatory developments, improvements to technical documentation, the incorporation of LCA methods into company processes, and best production management practices.

The seminars focused on topics such as the development of AI-powered real-time systems, sealing process quality control, intelligent motion control, ML OPS tools and methodologies, hardware and software for AI edge-cloud, DevSecOps, generative AI, metamaterials, cybersecurity, the circular economy, anomaly detection in machine vision, energy for the industry of the future, TinyML, language models, ultrasound sensors, quantum computing, and metal surface polishing solutions.

The webinars addressed performance management in microservice architectures, cybersecurity resilience for IoT and OT devices, and agile transformation, while conferences and workshops focused on exploring artificial intelligence and human-technology interaction. Furthermore, Demodays focusing on Generative AI tools for Knowledge Management, Assisted Coding and Assisted Maintenance, were organized. Additionally, techno-tours included visits to research centers and supercomputer facilities.

Bi-Rex

For the two-year period 2024-2025, work with the Bi-Rex competence center involves the activation of 6 projects that draw on PNRR funding, in partnership with other local companies and the region’s main universities. The projects are:

• POWOPS (As-a-service software development platform for the manufacturing sector)

• ILUMINAS (Large language model after-sale)

• PLAAS+ (PLC as-a-service)

• QUEST (Quantification and reduction of the environmental impact of automated packaging processes thanks to LCA and eco-design)

• EVOCATION (Innovative cost-effective sensors for diagnostic parameter and machine load condition monitoring)

• MATRIX (Robotic handling and transport of liquids for high-performance industrial applications) 5

2024 also saw further work from the internal group that was set up to ascertain the viability of developing projects in several areas of potential interest to SACMI Business Units.

R&D Automation projects The ‘life cycle thinking’ approach

Further projects by SACMI Innovation Lab - some completed, some in progress - include an interesting set of activities that take a ‘ life cycle thinking approach: these aim to expand the sustainability concept within manufacturing from a broader perspective, taking into account the product’s economic-productive impact and, therefore, its environmental and social impact over its entire life cycle.

Underlying these activities is a ‘digital’ approach to defining large datasets in order to define sustainability and incorporate it into products and production processes.

The paper ‘Sustainability and Industry 4.0: definition of a set of key performance indicators for manufacturing companies’, published by the University of Modena and Reggio Emilia, highlights some of the projects carried out by the Lab. For the previous and current year, the following stand out:

Embedded Hardware

Numerous boards were redesigned to offset the obsolescence of machine electrical components (microchips) and, at the same time, overcome supply chain issues (longer lead times, price volatility, obsolescence).

A study to introduce EFINIX technology as an alternative to Altera technology was carried forwards. Design of the new APD architecture for multi-color deep digital printing was also completed.

An innovative sensor for measuring dust levels in the VNT machine has been developed: this provides precise, stable feedback on the amount of dust released by the machine onto the conveyor belt, an essential factor in producing high-quality products with through-body veining.

Drawing on feedback received following its market launch, the Lab continued its studies to further improve the CRONOs software that controls graphics on ceramic lines.

Working alongside the Decorations PU, the Lab designed and developed the Decoration Line Manager, a new coordination and centralized control solution for Decoration lines. This line supervisor, in fact, allows quick connection to machines to manage production recipes and the relative synchronization.

The new RIP AL VOLO function was implemented: this advanced algorithm lets users make real-time geometric changes to the image to be printed on the tile on the basis of the orientation and any deformation of the latter by using machine input sensors. This optimizes performance and overall quality.

An application for automatic extraction of decoration features from a source image was also created. This step is essential for the printing process, as the printers receive input images sub-divided by channels, which represent the

decoration being created. This process - which is currently manual and expensive - is still managed by the technologist: however, this application lets the latter configure the desired parameters and obtain faster, more precise results as the software already integrates the resolution capacity available on the machine.

Robotics

In robotics, the Lab collaborated in the study and market launch of new off-line programming software for sanitaryware robots (Smart Off Line NG). In the same area, it also worked on the product inspection system: this is a robotic station equipped with 2D and 3D sensors that can detect images and 3D dot clouds, its goal being to find defects using classic or AI-powered algorithms.

Industrial simulation

In 2024, the Lab continued to develop the plant ‘digital twin’. In particular a SACMI Imola warehouse digital twin was created in collaboration with SacmiCassioli Intralogistics This has now been implemented, making it possible to simulate planned or expected production flows, efficiently scheduling the various orders and assigning workers to picking bays.

Note also the project with BMR on the Leviga and Supershine machines (optimal crossbeam speed calculation for homogeneous surface coverage, satellite head rotation speed modeling), which saw the first prototype installed on a machine at a customer’s plant.

For SACMI Packaging & Chocolate, instead, a wrapping lines simulation library was developed.

Digital printing

Wealth

The ‘economic value’ attributed to SACMI's core activities is identified through the calculation of Wealth Generated and Distributed (i.e. the wealth created by the company in carrying out its daily business).

Economic value distributed is a basic element for assessing the Company's economic and social impact. It also helps evaluate the wealth generated and distributed to certain categories of subjects who have, via their involvement, contributed to producing it and/or count, in any case, among the Organization’s key stakeholders.

The Retained Wealth instead, represents that part of economic resources retained within the Company for its own sustenance and sustainability over time.

During 2024 the SACMI Global Network achieved revenues of 1.728 billion euros, generating an overall economic value of 1.849 billion euros; items relating to operating costs and tax decreased by 18% compared to the previous year while remuneration of personnel increased by 2%. Borrowed and risk capital fell by 6% and investment in the community rose by 21%.

In total, economic value distributed came to 1,631.6 million euros, 14% lower than in 2023. Lastly, retained wealth was 217.3 million euros, an increase on the previous year's amount.

The company prepares its financial statements in the form and content laid out in the international accounting standards (IAS/IFRS) issued by the International Accounting Standards Board and approved by the European Union, including all interpretations of the International Financing Reporting Interpretations Committee (IFRIC) and in compliance with the provisions pertaining to art. 9 of Italian Legislative Decree (D. Lgs). 38/2005.

The Financial Statement up to 31 st December 2024 - consisting of the Financial and Asset Situation, Income, Total Income, Cash Flow and Changes in Net Equity statements - is audited by Deloitte & Touche S.p.A. in compliance with art. 14 of Italian D. Lgs. 27.1.2010 n. 39 (art. 2409-ter of the Italian civil code) and art. 15 of law n. 59 of 01/31/1992 on cooperatives.

For the purposes of this Report, the data contained in the aforementioned financial statements has been reclassified in the Added Value and Distribution framework in which economic value directly generated and distributed (EVG&D) is determined on the accrual basis.

Taxes have been calculated with specific reference to legislation governing cooperatives.

SACMI Imola SC is subject to the tax regime envisaged for cooperatives other than prevailingly mutual assistance cooperatives. Consequently, the estimate of the tax burden was calculated by tax-relieving 90% of the amount allocated to the legal reserve, equal to 30% of the profit (thus tax-relieving 27% of profit) and 3% of the profit to be allocated to mutual aid funds for the promotion and development of Cooperation.

Social performance |

People play a vital role in SACMI's corporate organization and success. The company’s policy towards employees has three key pillars: stability and continuity of employment, development of human resources, measures designed to safeguard health and safety SACMI supports and safeguards the development of human capital by creating employment.

Over the last few years, the SACMI Group has seen a steady increase in staffing levels. A total of 4,756 employees were contained within the reporting boundary, 95.5% (4,543 people) of whom have permanent employment contracts.

Employees by geographical area (on 31/12/2024)

Employees by profession and gender (on 31/12/2024)

Employees by profession and age (on 31/12/2024)

Female staff account for 19.5% of the total workforce. Looking solely at the Italian subsidiaries, female employment levels stand at 19.1%.

Employee loyalty is reflected in the length of service 16.5% of employees have been with SACMI for a period of 16 - 25 years, while 14.2% have more than 25 years’ seniority. The average length of service in the company is longer than 11 years. This average is strongly affected by the high number of under-30s hired (some of whom have come from education programs).

1 The comparison is made on an equal-perimeter basis, with the exclusion of the Beverage BU.

During 2024, the SACMI Group hired 506 new employees 50.4% of whom were under 30, contributing to a lower average Group employee age.

New hires by gender and country (on 31/12/24)

The Group-level turnover rate, understood as the total number of departures over the average number of annual employees, was 7.85% in 2024. The voluntary turnover rate remains exceptionally low² and is, in the SACMI Group’s Italian companies, just 3.6%

All the Italian sites of the SACMI Group adopt national collective labor agreements stipulated by the most representative organizations of the respective industry. This regulates - in addition to that provided for by the Constitutional Sources and Law (Workers' Statute) - working conditions for all workers and all industrial relations.

All employees of the SACMI Group’s Italian companies are covered by collective bargaining agreements: the National Collective Agreement for Cooperative Metalworkers applies to all employees of the parent company SACMI Imola SC, while the National Collective Agreement for Metalworking Industry Employees the National Collective Agreement for Transport and Logistics Workers or the CONFAPI collective contract applies to all subsidiary employees. All executives are covered by the National Collective Agreement for Industrial Executive Workers (refer to Italian text for original-language contract definitions).

Where present, collective agreements that regulate working conditions are also applied in the Group's foreign companies.

Employees of the Group's Italian sites are also represented, where applicable, by formally elected committees and protected by further forms of collective bargaining, valid within the individual site, that seek to further improve the principles defined in the National Collective Labor Agreements.

Skills enhancement

Personal and professional growth, framed by the principles of respect, willingness to listen and feedback established in the governance model, lie at the core of SACMI HR policy.

In general, skills enhancement at SACMI follows both a bottom-up model (listening to workers’ needs, perceived quality of work, areas for improvement) and a diffused top-down model.

The strategic aim is to ensure that key development skills are acquired and coordinated by team leaders - not just management - as they’re the ones in direct contact with workers and have the task of helping to build harmonized teams.

In 2024, there emerged a need for a job catalogue to map roles within the organization in a standardized manner. This will lead to the introduction of a process that maps and analyzes employees' knowledge and skills in order to define training needs and the specific training plans for each target.

SACMI Academy

During 2024, the SACMI Academy delivered 67,817 training hours to 2,991 employees of SACMI Group companies. Additionally, a further 26,520 hours of training relating to health and safety in the workplace and environmental issues were also provided. Overall, an average of 19.84 training hours per employee were provided in 2024.

Main training programs

SACMI favors a goal-oriented diffused leadership model based on the corporate principles and values of solidarity, ethics, listening, teamwork and innovation. Accordingly, some of the main training programs were as follows.

Performance management

Following feedback received in 2024, several improvements to the Performance management process were implemented to simplify it , broaden the scope for assessment and clarify valuerelated behavior . To take these improvements into account, a refresher training course was organized for all colleagues involved in the process. In 2025, this course will be extended to the new companies in the Italian perimeter.

Leading by values

Following on from 2023, the ‘Leading By Values’ training program, co-developed with the Bologna Business School , was again implemented in 2024. Divided into three 20-hour modules, the program provides a total of 4,672 hours ’ training and involves 256 people . This program - intended for those who hold coordination and team responsibility roles within the organization - was accompanied by a second program aimed at testing the effectiveness and scope for improvement of the collaborative model.

The ‘Leading by values’ course has three modules and each participant takes three years to complete it. More specifically, the modules are:

• Module 1 – Introduction to people management . Understanding the effectiveness of everyday people management tools.

• Module 2 – In-depth analysis of people and change management . Analysis of how people behave, emotional intelligence and motivation.

• Module 3 – Focus on team management Teamwork, building potential, managing emotions and group dynamics.

Project management

The 4/5-day ‘Project Management’ course provided by the Polytechnic of Turin and coordinated by the PMO (Project Management Officer) is intended for all Project Managers. In 2024, 23 people received a total of 658 hours of training. The ‘ Basic Project Management ’ course, instead, was designed for all those who, while not holding the official title of Project Manager, nevertheless administer projects. No less than 7 editions of this course (held by internal trainers) were held in 2024, involving a total of 79 participants in 514 training hours

SACMI Digital Days

In keeping with the line taken in 2021, the Academy continues to focus on enhancing in-company understanding and use of tools that streamline the digital transition. This means training on key aspects such as collaborative co-working. However, it also means instilling a far-reaching, interdisciplinary digital mindset that matches the organization’s goals.

In 2024, together with the Digital Hub facility and as part of the Academy IoT project, the following were carried out:

• Promotion of an understanding of the Digital Hub within the organization Two ‘Digital Hub stories’ events were organized, conducted by internal trainers.

• Creating a culture of new technologies : this 3-event program aimed sought to enhance digital culture at all levels of the Group. Co-organized with Accenture (Amagamma) and Bologna Business School, these events took an informative approach.

Further events on this topic are planned for 2025.

Sustainability

In collaboration with the Group Sustainability team, the SACMI Academy launched several sustainability-focused initiatives. Specifically, two ‘CSRD obligations and sanctions and the product’ events were organized for Team Management and five ‘ESG, regulations and reporting tools’ events were organized in Italian and English for the core and green teams (involving the entire network) 4

Effective, collaborative communication

An ‘effective and collaborative communication’ course was provided by internal trainers in 2024. This module seeks to develop people’s ability to communicate and cooperate at all levels of the company. It provides participants with models and techniques designed to make them better listeners and questioners, enhance their ability to speak ‘the other person’s language’ and ensure clear discourse . The module also includes simulations and practical exercises. In total, 9 editions were organized, involving 80 people

Design Thinking & Innovation

In 2024, the first ‘Design Thinking & Innovation’ pilot course was held, attended by 27 people Its main goals were to promote innovation and teamwork develop products that align with customer needs , enhance problem-solving skills, build team spirit and improve personnel’s innovation skills

Lean Six Sigma

A structured course aimed at improving business processes was launched. During the first phase, 14 people obtained Green Belt certification: to attain this, it was necessary to complete a course exploring various aspects of the Lean Six Sigma methodology. During training, participants acquire both the theoretical knowledge and the practical skills needed to implement improvement projects.

In order to obtain certification, participants must implement at least one Lean Six Sigma project in the field to demonstrate their ability to put theory into practice. A second edition of the course is currently in progress and will end in September. In parallel, a Black Belt certification course will commence to train working groups led by experts.

Technical training

SACMI Academy focuses on enhancing internal skills by holding courses run by internal trainers. These programs focus on skills vital to the organization, hence a sharp focus on a solid technical understanding of the machines. In 2024, a total of 6134 technical training hours were provided and 103 courses organized.

Onboarding

New hires are offered across-the-board courses to make their entry into the Group more effective and reduce the impact on turnover.

4

Schools and Universities

Training is the lifeblood that feeds the organization’s growth: with the Academy, SACMI extends such training to customers, the other companies in the SACMI network in Italy and worldwide, and to relations with universities and schools.

This approach - which seeks to make the most of ongoing partnerships between SACMI and the world of education - also aims to attract new talent to fill key positions in the company, in keeping with the outlined needs, strategies and programs.

The Academy and its courses - provided to SACMI personnel on a continuous basis - also have a secondary employer branding purpose (i.e. to make the company more appealing, especially as regards new, strategically important STEM roles) to ensure the organization’s continued growth.

SACMI has always aimed to nurture the best students from local schools and universities. It does so by providing internships, dissertation projects and work-related learning programs with an eye to hiring participants, effectively eliminating the need for search and selection. In 2024, the SACMI GROUP had 134 active student projects that included : work-related learning, work experience, university internships and dissertation projects, scholarships and PhDs. Furthermore, in 2024 SACMI worked alongside local high schools and universities; this saw the HR Office or company Ambassadors teach, arrange company visits or deliver company presentations at universities (around 15 active collaborations).

Such initiatives are designed to ensure students get the most from their in-company experience and to facilitate their immediate hiring as positions become available; this speeds up the selection process and allows SACMI to hire the best students directly.

63 5 15 149 45 3 7 1 10 For 2023 the SACMI project portfolio consisted of: in-company university

Corporate culture: internal commissions in SACMI Imola

The parent company, SACMI Imola SC, has established two internal commissions to promote a sense of participation and belonging to the Cooperative . They do this by organizing various activities and courses, not just for the youngest employees but everyone, regardless of their role.

The initiatives organized by the two commissions seek to promote Cooperative values such as the importance of people and inter-generational development. This focus on people also takes the form of in-company recreational activities to strengthen relationships, personal growth and collective development in a positive, fulfilling way.

The two commissions are: ( C.C.R.S. ). (Cultural, Recreational and Publishing Commission); Cooperative Social and Training Commission . The latter is coordinated by the Board of Directors and has five members, all Cooperative members. It has the task of:

• promoting initiatives that strengthen and ensure continuity of cooperation principles among all employees, thus fostering awareness of the cooperative identity and a deeper understanding of the company.

• promoting events to foster a better understanding of the company and the Group , maintain a sense of collective participation and encourage employees’ active involvement.

work (doctoral theses)

research

Analogously, the SACMI HR office regularly attends university Career Days to meet students looking to develop dissertation projects and graduates seeking job opportunities. High school orientation days also gives the company opportunities to establish initial contact with potential candidates for in-company work experience. The HR Office also arranges for high school classes, post-diploma vocational training course classes (e.g. ITS or IFTS), and university students to visit Group facilities to show them what SACMI does and give them a first-hand look at the technologies.

• handling, in this sense, training for Members and Employees.

The Board of Directors can assign the Commission specific tasks pertaining to these topics. To fulfil its role, the Commission coordinates with other corporate departments/personnel and may consequently involve employees. The Commission is elected by the members of the Cooperative.

Remuneration policies

All SACMI employees receive support to promote their personal development and well-being. This takes the form of, for example, professional training and, in parallel, equal opportunities and pay without any form of discrimination.

Given this, the remuneration policy regards everyone in the company, Senior Managers included. The awarding of bonuses, defined by an internal Group policy, stems from individual performance in terms of achieving assigned goals.

Once again, during 2024 all SACMI roles were assessed according to an international method. Roles were clustered into skill-specific bands and, for each band, a market positioning curve was drawn up to evaluate internal and external equity with respect to guaranteed pay ( Total Guaranteed Compensation ).

This methodology, linked to formalized performance assessment, provided managers with support in prioritizing and evaluating 2024 salary increases, in line with the remuneration model defined for each company. The entire process was made easier thanks to a dedicated IT tool that allows salary growth to be planned according to individual performance and market-related individual remuneration positioning.

The salary model and the remuneration policies connected to it have been approved by the highest decision-making bodies of each SACMI company. Moreover, they approve, on a year-by-year basis, the remuneration budget, in keeping with the company's economic and financial plan.

Company welfare

Work-life balance metrics

All SACMI Group companies are committed to providing welfare services that match both workers’ needs and the specific geographical context.

All the Italian companies of the SACMI Group provide welfare services to their employees.

Pension fund

All employees have the right to join a supplementary pension fund to which company-paid contributions are added.

Other benefits

By early 2020, the SACMI Group was already extending contract-regulated ‘smart working’ to provide a better work-life balance for all employees.

Support for families

An initiative to provide support for young mothers employed by the Group's Italian subsidiaries is planned for 2025. This aims to give them greater working flexibility and let them reconcile their professional responsibilities with family life, especially during significant life events such as pregnancy, childbirth and child-rearing. This aims to prevent discrimination against parents (especially mothers) in terms of career advancement, promotions and remuneration. It ensures all employees have equal opportunities and promotes a culture of respect and fairness for all.

Psychological support

By the end of 2025, the aim is to provide all employees with access to a platform offering professional psychological counseling/support services: this will allow personnel to address any psychological needs - also in response to changes in their private or professional lives - and safeguard their mental health

Salary review

For years now, the SACMI Group has adopted a clear-cut methodology that ensures a fair salary dynamic based on objective role-associated factors market benchmarks and employee performance. Its purpose is to ensure equal opportunities and prevent discrimination within the workforce or in the labor market where Group practices are applied 5

The SACMI Group, foreign subsidiaries included, is committed to providing welfare services that match both workers’ needs and the specific geographical and legal context.

5 See the ‘Remuneration policies’ section of this chapter.

Employee (own workforce) involvement in double materiality analysis

The SACMI Group acknowledges the crucial role stakeholders play in developing its business. The Group thus believes it is important to orientate its business model and its strategy in such a way as to mitigate any negative impacts produced by the Group’s activities and its value chain and, vice versa, intensify any positive ones.

The first step in defining this strategy was, therefore, to involve certain categories of stakeholders - Group employees included - in the double materiality analysis process. More specifically, Green Team members were asked to assess a long list of impacts, both positive and negative, actual and potential, identified as potentially material for SACMI.

People were thus given an opportunity to express their opinion regarding the relevance of each impact for the Group, taking into account its scale, scope and the probability that each impact will occur.

The results of this engagement with employees were then merged with those obtained from the Group's suppliers and customers and the internal assessments carried out by the Working Group. This analysis helped define a more complete, shared representation of the Group’s sustainability priorities useful for drawing up future strategic guidelines.

Significant impacts, risks and opportunities and their interaction with strategy and the business model

Dual materiality analysis has identified a series of positive and negative impacts, current and potential, relating to its workforce, and a risk. These are indicated below:

• inadequate remuneration of Group personnel

• non-compliance with collective bargaining agreements

• training and management of talent within the Group

• accidents and occupational illnesses within the Group

• unequal remuneration of Group employees

• exclusion of disabled persons from the Group workforce

• non-inclusive workplace practices

• cyber security

• failure to respect Group employees’ work-life balance

• respect for human rights within the organization (child labor and forced labor)

• lack of collective bargaining agreements

• limitation of freedom of association

• no dialogue with trade unions

• violation of privacy.

The identified impacts and risks are closely related to Group strategy, which is based on concepts of stability and continuity of employment, enhancement of human resources and safeguarding health and safety

Material impacts do not refer to individual episodes or events: they are generic impacts identified on the basis of the social and geographical contexts in which the Group operates. The effectspositive or negative - of such impacts are felt by the Group's own workforce, which consists of

both direct employees and external workers. Positive impacts mainly refer to employee training and management , while negative impacts concern issues related to working conditions (e.g. adequate remuneration, freedom of association, collective bargaining, health and safety, privacy, etc.), equal opportunities and workers' rights 6

The Group has identified only one material risk correlated with ‘Own workforce’, which is linked to potential cases of violation of employees’ privacy. The Group has not, instead, identified any material opportunities related to this Topic.

No material impacts on the Group's own workforce resulting from transition plans implemented to reduce negative environmental impacts or to pursue climate neutrality goals (to be assessed within the Sustainability Plan Definition process) were identified. Similarly, no operations with a high risk of forced or child labor were identified within the Organization.

In carrying out Double Materiality Analysis, the Group considered its entire workforce 7 . This category includes employees and worker-members, classified on the basis of contract type (fixed-term, permanent, zero-hours, full-time and part-time) and gender. Non-employee workers are excluded; however, the Group does collect and report such data in accordance with regulations.

Processes to involve the Group's own workforce and workers' representatives in relation to impacts

The viewpoints of the Group's own workforce play a key role in guiding SACMI's strategy. Accordingly, the Group has established a listening and feedback model , divided into several areas. This has the dual aim of allowing full participation on the part of the people involved and defining a sustainable workplace organization and quality development model that will help generate positive impacts.

This process has a 3-phase structure and directly involves both the Group's own workforce and workers' representatives.

• Phase 1 consists of regular consultations with employees and their representatives to gather feedback on the Group’s social initiatives and to ensure such initiatives are relevant and effective in addressing workers’ actual concerns.

• Phase 2 involves only workers' representatives to monitor and assess the implemented social programs; the resulting feedback - based on employees’ direct experiences - may suggest targeted initiatives to improve company processes that involve the workforce.

• Lastly, Phase 3 involves sample-based mood analysis ’ to assess employees satisfaction so that the company can intervene with targeted programs should any specific issues arise.

Processes to offset any negative impacts and channels that allow workers to raise concerns

Over time, the Group has established a series of processes and channels to produce forecasts and/ or cooperate with workers to correct any impacts that may be to the detriment of its workforce. Key processes include:

• The Group Code of Ethics , which establishes zero tolerance for practices that negatively impact employees, with a commitment to correct any such situations promptly and fairly.

• Implementing employee feedback mechanisms (surveys, focus groups, anonymous reports).

• Involving employees in the definition of Group policies that concern them.

• Training programs for managers with an emphasis on leadership and the most appropriate ways to manage employee concerns.

6 Some of the above-cited IROs are interconnected with the goals listed in the ‘Policies relating to company’s own workforce’ section of chapter 2, ‘Governance’.

7 No distinctions were made regarding specific groups of workers more exposed to risk.

Integrated Annual Report 2024 / Social performance / Our people

Additional workplace health and safety 8 processes mainly consist of:

• Mapping of any non-conformities , with any issues being resolved through liaison between the various production departments.

• Implementation of health and safety reporting tools (e.g. warning systems, near misses, etc.) that can be used by all stakeholders.

• Continuous personalized training based on risks present at the various sites

• Definition of Group procedures and regulations

With regard to the channels used to raise concerns, these are mainly:

• The employee's Manager or Direct Supervisor , as they are all trained to handle complaints professionally and confidentially.

• The Human Resources Department , which acts as a neutral party that addresses complaints objectively.

• The Whistleblowing System which can be used via a phone line or an anonymous Legal Whistleblowing platform, accessible via the company SharePoint and Group website. The system lets employees report unethical or illegal behavior. Through it, the Group gives whistleblowers anonymity, shields those reporting in good faith from retaliation and provides independent oversight to ensure concerns are taken seriously and investigated thoroughly.

• In the event of issues or concerns about privacy or cybersecurity, the workforce can consult the Cybersecurity team via a ticketing service or a dedicated email address

• Lastly, with regard to workplace health and safety, employees can - in addition to the previously listed channels - raise any concerns during periodic meetings with the individual subsidiaries’ Safety teams Moreover, supporting bodies help manage health monitoring, training, construction sites and contracts and travelling personnel 9 can rely on an information/support service.

The above-described tools are made available to the entire workforce via the company SharePoint, on the Group's website and through other public documents.

Health and Safety

The importance of workplace health and safety goes beyond mere compliance with the standards in force in the countries where the Group does business: at SACMI, health and safety is, rather, a deeply ingrained part of the company culture.

Quality, Safety and Sustainability Policy

SACMI is committed to the continuous improvement of workplace health and safety and transforming its culture of social responsibility into an untiring quest for optimal worker-focused solutions.

Commitment to employees’ health and safety is ongoing. This ensures all tasks are performed in a secure environment, in full compliance with internal and regulatory prevention-protection standards

SACMI is well aware that quality, safety and environmental sustainability represent more than founding principles: they also provide major competitive advantages. Consequently, the Board of Directors of the SACMI Imola parent company approved the Group quality-safety-sustainability Policy

The majority of Group employees are covered by an occupational health and safety management system

More specifically, at SACMI Imola SC, SACMI Carpmec and Velomat, the H&S management system is certified as per UNI EN ISO 45001 . The other companies in the Group, while not in possession of formal certification, operate according to ISO-defined guidelines, in compliance with local regulations and the Group's Quality, Safety and Sustainability Policy

8 For further information, see the Health and Safety section at the end of this chapter.

9 For further information, see the section “Workers travelling abroad: 24/7 assistance” at the end of this chapter.

Culture of Safety: approach and tools

Group companies seek to spread a culture of safety at every organizational level, encouraging responsible behavior among all those involved, directly or indirectly, in production processes. Their full commitment to preventing and mitigating any impact on health and safety at work involves the following approach:

• Compliance with laws and regulations in each country where the Group does business and compliance with the relevant workplace health and safety standards. To ensure such compliance, most Group companies

have established workplace health and safety committees made up of management representatives, worker representatives and various designated supervisors.

• Workplace health and safety risk assessment for all tasks relating to production, the provision of services and tasks performed by suppliers, contractors and partners 10

• Involvement/teamwork with workers - and suppliers, contractors and partners - to encourage shared commitment to workplace health and safety so that all relative parties exchange information, address issues and implement joint initiatives to prevent and mitigate risk.

• Constant information/training for own wor-

80.87

Percentage of people in own workforce covered by a health and safety management system as per legal requirements and/or recognized standards or guidelines - 2024

Employees (%)

kers and those of suppliers and contractors on workplace health and safety in order to prevent danger and adopt safe procedures.

• Continuous improvement through monitoring of health- and safety-related practices, assessment of the effectiveness of implemented risk mitigation measures and the taking of appropriate corrective action.

All SACMI Group Italian companies comply with Italian D.Lgs. 81/2008 by organizing one or more team meetings a year, attended by management, the company’s safety delegates, the company Prevention and Protection Service and the company doctor.

With regard to Health Monitoring management, Italian subsidiaries appointed a sole Coordinating Doctor in 2022; this was done to coordinate health surveillance, define shared working methods and standardize health monitoring of all workers.

Moreover, with regard to the parent company SACMI Imola, applying the principle of internal mutuality means the cooperative has, for many years, provided - in addition to legally required medical check-ups - specialist check-ups for those aged over 40. These benefits are extended to over-40s every two years, whatever their role, and to retired SACMI Imola employees.

Risk assessment

SACMI is involved in several different types of manufacturing. Since the company consists of different Businesses, production-related risks vary considerably from one to another. More specifically, the main production-related risks are found inside the plant (e.g. lifting heavy objects/ materials with mechanical equipment, manual assembly tasks on machines or equipment, using machine tools, internal walkways and layouts, etc.) or outside it (e.g. installation construction sites at customer factories).

Assessment of workplace health and safety hazards/risks and the relative measures for their elimination are contained in the Risk Assessment Documents ( RAD ): these are specific to each SACMI Group site and are updated in compliance with the law.

100% of the SACMI Group's operational offices are covered by assessment of risks to employees’ health and safety.

Attention to safety is not limited to SACMI employees but extends to all those who work in or visit the company's offices, factories and construction sites . SACMI Prevention and Protection Service officers routinely monitor the technical/professional requisites of contracted or sub-contracted workers in compliance with the relevant laws and standards. In this regard, some Italian companies of the Group have set up a dedicated internet portal, managed by qualified professionals: this is designed to ensure suppliers are properly qualified by applying standardized safety-related parameters. It also ensures continuous sharing of information on technical and professional requisites and allows supervision of any non-conformities that may arise during work.

Prevention and Protection Service

The SACMI Group Prevention and Protection Service has engaged in multiple projects. In particular, recent years have seen some Group companies develop a deeper understanding of all aspects involving technology, health and safety. For example, auditing of manufacturing departments and installation sites - performed periodically by qualified personnel and company managers involved in workplace health and safety management - has ensured proper assessment of risks associated with the use of machines, systems, substances and products.

In general, a combination of auditing procedures ensures monitoring and reduction of all risk factors (e.g. use of electricity, mechanical dangers, workplace orderliness/cleanliness also via application of the 5S method, electromagnetic fields, the use of chemical substances, noise, emergency procedures, artificial optical radiation, vibration, manual load handling, explosive atmospheres, pressurized equipment, all lifting gear/tools/ accessories etc.).

For Italian companies of the Group, 100% of the workforce is represented in formal joint health and safety committees made up of managers and workers.

HSE (Health, Safety, Environment) training and information

SACMI companies have implemented procedures that inform and train personnel on workplace health and safety matters in compliance with the relative standards and/or laws. This has always been a major commitment, both in terms of hours allocated and employees involved; the company Prevention and Protection system directorate periodically verifies mandatory and non-mandatory training needs and organizes periodic meetings to discuss topics deemed a source of risk.

In 2021 a corporate body that deals with all the Italian subsidiaries was established to organize health, safety and environmental training.

This body is responsible for drawing up the Corporate Safety Training Plan , which lists the compulsory training required within each company. It also organizes training events at Group level, in concert with individual company Occupational Health and Safety officers.

In 2024 SACMI Group companies provided a total of more than 26,520 hours of health, safety and environmental training, involving 2,457 workers

In 2024 health, safety and environmental training involved:

• courses for new-hires

• courses for company managers and other designated personnel in positions of responsibility

• general updating courses for all workers

• courses on proper use of PPE

• courses on how to use company equipment (aerial platforms, fork-lift trucks, bridge cranes, electrical risks etc.)

• courses on accessing enclosed spaces, management and transport of dangerous goods, use of dangerous substances

• emergency team upgrade courses (fire-fighting, first aid, defibrillator use)

• training courses concerning use of equipment and company procedures

HSE training hours hours/person

+16% 10.8 (Health, Safety and Environment) compared to 7 hours/person in 2023 compared to 2023

The language and terminology used in all training sessions is designed to be understandable to all workers. Comprehension is assessed via a test and satisfaction measured by way of a questionnaire.

SACMI companies have opened multiple communication channels with all employees to ensure continuous improvements to the way workplace health and safety are managed. SACMI aims to disseminate an inclusive culture of safety to which everyone can rightfully and responsibly make an active contribution.

This goal is being pursued in all Group companies via meetings that involve all personnel from all departments, third parties included. The process includes:

• periodic audits or meetings to share company performance info for each corporate area

• periodic teamwork with the various company managers (in addition to meetings required by law)

• IT applications to gather reports on any critical situations (near misses, unsafe situations) or environmental issues

• periodic training courses (also beyond legal requirements)

• regular newsletters

• an intranet with a space dedicated to safety, environment and sustainability information

• use of check lists to verify safety devices on equipment and machines used by workers in manufacturing.

Tavolo 81 Imola Association

The Associazione Tavolo 81 Imola promotes a culture of workplace health and safety in the Imola area. It was founded in 1999. Every year it organizes seminars, conferences and events on topical health and safety issues, illustrating how improvements can be put into practice. Moreover, it provides training in schools in and around Imola. SACMI actively supports the Association, after having held its presidency for 5 years up to 2021 on behalf of Legacoop Imola.

During 2024 the Association organized training meetings that involved various stakeholders (clients, suppliers, partners, supervisory bodies, consultants, trade associations). Their purpose was to analyze legislative changes, assess their ramifications, look at the requisite implementation methods and investigate any problem areas. Specifically, 3 meetings were held on the following topics:

• Culture of Safety how to promote it, how to measure it

• New technologies and AI to enhance workplace health and safety (hosted at the SACMI Imola headquarters)

• Qualification of businesses and safe execution of tenders on worksites and in the company

Furthermore, SACMI Imola (through Legacoop Imola) nominates a person to sit on the board of Più Sicurezza Srl a company that provides a range of safety-related worker training courses at a modern facility: the latter offers the settings, machines and equipment needed to simulate the main scenarios in various manufacturing industries. Più Sicurezza , in collaboration with Protesa, is developing a worker safety training project that uses immersive virtual reality . This involves a move from 3D to photorealism, from standard experiences to personalized experiences: one of the first ‘proofs of concept’ of this project will be developed at SACMI.

Near-misses and accidents

Several years ago, as part of ongoing improvements, SACMI created an app that lets employees independently report any ‘ near misses or unsafe actions they may have witnessed. Reports are converted into an anonymous format before being investigated.

Accidents

and occupational illnesses – 2024

Work-related injuries

During 2024, there were 70 work-related accidents involving employees throughout the Group. The number of accidents excludes those that occurred in transit, except where company vehicles were used or the journey was organized by SACMI (e.g. business travel). During 2024, no workplace fatalities were recorded within the Group.

Number of work-related deaths, injuries and illnesses

Number of days lost due to work-related injuries and deaths, occupational diseases and deaths from disease

Workers travelling abroad: 24/7 assistance

SACMI is meticulously attentive to the safety of its personnel traveling abroad; workers operating abroad are informed of any risks in the country where they will be working and can access an information and support service to resolve any medical or security issues that might arise overseas. The service is provided by a specialized company that updates information in real time and responds 24/7 to requests for assistance worldwide. A centralized travel booking system allows for the management of specific information for each destination and person.

Data security

The Group’s Italian companies implement and maintain a single security management software package to better ensure the smooth running of business operations.

In compliance with Article 39 of the GDPR (General Data Protection Regulation), which requires that personnel involved in data processing operations receive adequate training, the Group has also established a structured information security awareness and training program

This program is aimed at the Group in its entirety and involves regular employees, secondment employees, temporary staff and interns. Learning goals are specific to the category of personnel.

Work-related accidents

Work-related accident rate

Cooperative membership | 5.2

The distinguishing element of the cooperative firm - the principle of mutuality (also known as the principle of cooperation) - lies in the economic relationship members have with the Cooperative and their role in its democratic bodies.

SACMI Imola membership levels were in line with those of previous years. Twelve workers became members in 2024 (against 9 losses: 2 resignations and 7 retirements); they were selected on the basis of requisites such as a minimum of 5 years’ service, moral and professional qualities such as dedication and cooperative spirit, dynamism and professionalism. In compliance with Italian law 142/2001 concerning worker-members, profit shares are issued as per legal requirements and may take various forms such as an increase in the value of share capital (as a form of capitalization and therefore self-financing for the company) and wage bonuses.

Another key feature of the relationship between Cooperative and Member is the membership loan . This tool, which lets members invest in their own work and finance the activities of the cooperative, is managed according to rules drawn up by the Members’ Assembly. Compared to the previous year, its value increased by about 707,000 euro.

A further cooperative-specific feature is the application of basic democratic principles allowing members to play a role in the decision-making process and take part in the Assembly and election of the Board of Directors. During 2024 seven assemblies were held, with average attendance running at 91.5%. In 2024 the corporate capital of the

communities Involvement in local | 5.3

SACMI extends its cooperation principle into the wider world where it supports numerous projects in Italy and beyond. This ongoing support is in keeping with its core values. Over the last 3 years, SACMI has allocated 2.4 million euro to local and international charity projects, mainly in health , assistance and education . This amount includes both resources pertaining to the income statement and disbursements from the SACMI Imola SC parent company cooperative fund, for institutions/projects approved at the time of allocating profits from previous years.

Helping to provide training and personal care services in those parts of the world where SACMI operates is a key part of community service, as are initiatives to support art, culture and sport.

Deciding which key projects to support in a given year depends on the actual needs of communities, identified by listening carefully to local people and the main charity associations that work there.

Projects are selected by listening to the needs of communities and the associations that operate within them. In 2024 SACMI continued to focus on support for training, assistance and personal care services, yet also culture and sports

Another key initiative in 2024 was the donation of crucial disaster relief equipment to the Municipality of Imola.

This project began to take shape after sounding out the requirements of the local community and acknowledging the need to provide authorities with faster, more effective means of assistance in the face of the increasingly frequent floods that have, since 2023, hit Imola and its environs hard.

May 2024 saw the delivery of two vital pieces of equipment: a self-priming centrifugal pump and an automatic sand-bagging machine, both enormously useful to the Municipality's Protezione Civile unit.

The goal is to strengthen the area’s civil protection system and boost its capacity to respond to extreme events.

SACMI Imola (Italy)

To mark the 105th anniversary of its founding, the parent company donated a specially equipped vehicle for the transport of people with mobility difficulties to the Auser Imola charity.

Adapted to carry wheelchair users, the vehicle was specifically selected to meet the requirements of Auser Imola , an association that - with over 100 active volunteers and more than 7,000 transports completed in 2024 alone - provides valuable daily support for citizens who need to access social-healthcare facilities in Imola and hospitals in the wider Emilia-Romagna region.

This latest SACMI donation helped replace obsolete vehicles and improve the efficiency and safety of the transport services offered by Auser, which often takes dialysis patients and elderly people to day care centers.

Other disbursements were made during the year, in continuity with previous ones. Many were made to associations that provide local health, disability care and other services for those in need: these include the ANT Foundation (free home care for cancer patients), LILT (Italian league for the fight against cancer), AISM (Italian Multiple Sclerosis Association), Professione Medica (health training and education in schools) and UNITALSI (Italian Union for the Transport of the Infirm to Lourdes and International Sanctuaries).

Health - above all, in the sense of human dignity - remained the focus of several initiatives to sustain various local associations: these included donations to the Fondazione Banco Alimentare Emilia-Romagna Onlus (food bank), Associazione No Sprechi Onlus (free meals for people facing hardship), plus donations to the associations PerLeDonne and Noi Giovani.

On the education and training fronts, 2024 saw SACMI finalize donations to the University of Bologna for the pro-rata purchase of equipment to be used on local degree courses this is to be used on the ‘Chemistry and Technologies for the Environment and for Materials’ course (Faenza campus) and the ‘Mechatronics’ course (Imola campus).

SACMI also financed scholarships and PhDs. These included the co-funding, with the University of Bologna, of a doctoral scholarship in Industrial Chemistry (to develop sustainable processes for decarbonizing the ceramic industry, saving water and recycling industrial by-products) and the 40th IBES doctoral scholarship to investigate methods and tools for the control and optimization of autonomous mobile robots (Department of Electrical Energy and Information Engineering); in partnership with the University of Ferrara, the company co-funded a Physics research PhD scholarship; at the University of Modena and Reggio Emilia, a third edition of the ‘Green Design 4.0: simulation and virtualization of the product life cycle for the sustainable design of ceramic manufacturing plants’ scholarship was financed.

Support was also lent to industrial associations in 2024, with SACMI donating to AIM (Italian Association of Macromolecular Science and Technology) and AITEM (Italian Association of Manufacturing Technologies) as part of the ‘Manuthon’ initiative.

Significant contributions were again made to Imola’s main sporting associations and local cultural organizations and events in 2024 (e.g. sponsorship of the diversity and inclusion event ‘WOW - Women Motor’ at the Imola Racetrack, the Imola in Musica festival, and a donation to the MIC International Ceramics Museum in Faenza as part of the Italian government’s ArtBonus initiative).

SACMI Group - Support provided to local, national and international community by sector (euro)

SACMI Forni & Filter (Italy)

In keeping with the parent company's policy, SACMI Forni & Filter lent its support to local bodies and associations that provide healthcare and personal care services, namely: APRO, ANFFAS, GRADE Fondazione Veronesi ADMO, Scandiano Red Cross, LISM, and the Pro Loco of Casalgrande.

SACMI Tech (Italy)

In 2024 the main donations provided support for the flooded areas of Emilia-Romagna, the Ukrainian community, APRO (fundraising for devices to be used by CORE Reggio Emilia), and the philanthropic association CuraRE MIRE.

SACMI Impianti (Italy)

BMR (Italy), BMR USA

In 2024, BMR (Italy) contributed to the social sphere (e.g. support for the associations ‘La Caramella Buona Onlus’ and ‘Casa Luce e Sorriso’), to culture (a donation to the Ater Foundation in the Municipality of Scandiano) and local amateur sports (football and basketball) associations. The subsidiary BMR USA, instead, lent its support to the CRYSA sports club, Nedo Sports Academy LLC, Fairfield Glade Police and the Cocco Music School.

Italvision (Italy)

For years now, Italvision has demonstrated its support for the local community by donating to healthcare and engaging with schools for training purposes. In 2024, a donation was also made to EMA Casalgrande to help fund an ambulance. On the training front, 2024 also saw Italvision provide a student from the F. Corni institute in Modena with an internship.

In 2024 the company approved a donation in favor of the Municipality of Mordano for the local agricultural festival. Defranceschi (Italy)

Gaiotto (Italy)

In 2024, most donations sought to provide relief to flooded areas of Emilia-Romagna. Additional funding was also provided to the Blood Donors Association and the Cancer Institute of Milan).

SACMI Impianti has strong ties with the Sassuolo area, where it coordinates community projects together with the parent company, SACMI Imola. Most projects focus on health, culture and sport, areas that highlight the qualities of participation, industriousness and pursuit of excellence that are woven into the local economic and social fabric. More specifically, 2024 saw SACMI Impianti contribute to the Teatro Carani Foundation of Sassuolo, which nurtures the cultural and artistic heritage of this historic theater. It also donated to the Fondazione ANT, the Amici per la Vita Hospice, APRO, and renewed its sponsorship of Sassuolo Football Club.

SACMI Molds & Dies

In 2024 the company supported the local non-profit organizations AIL Modena (Italian Association against Leukemia, Lymphoma and Myeloma), APRO and the Amici per la Vita Association.

Riedhammer (Germany)

For more than 30 years, Riedhammer has been running an association that promotes sport and culture: the ‘ Riedhammer Sport- und Kulturförderung e.V promotes the construction of sports facilities, provides sports equipment and participates in cultural events. Lastly, Riedhammer collaborates with International Cooperative Studies e.V. (ics e.V.), a non-profit association that seeks to maximize future opportunities for students by providing intensive courses based on the ICS model; the company has taken on several course participants.

SACMI Iberica (Spain)

The company is committed to promoting equal opportunities. In 2024, donations were made to Caritas, Associazione contro il Cancro , Castellón Down’s Syndrome Association and the EDEM school. SACMI Iberica also renewed its support for the Club Sportivo Villarreal foundation.

SACMI Do Brasil (Brazil)

More specifically, in 2024 SACMI Do Brasil lent support to the Associação promoção humana e resgate cidadania ’ (which promotes humanitarian and rehabilitation projects) and the Mogi Mirim Institute for the support of the children’s and adolescents’ rights. SACMI continues to support the São Bernardo Onlus Committee.

SACMI Machinery Foshan Nanhai (China)

The year saw SACMI Machinery Foshan Nanhai adopt a structured process for involving the local community, with initiatives engaging employees directly and focusing on environmental sustainability and social responsibility. Key activities included participation in cultural events, visits to leading ‘digitalizers’ (Volkswagen and Midea) and safety training (in collaboration with the local fire brigade). Other key aspects include periodic assessments of local needs, collaboration on projects, feedback and continuous improvement. All actions are monitored using measurable indicators to maximize their benefits to the local community.

Stakeholders’ interests and opinions

SACMI is particularly attentive to the needs and requirements expressed by communities in the places where it does business. By involving employees, suppliers and customers in the dual materiality process, the Group has been able to adapt its business model and action strategy to communities’ needs, thus mitigating any negative impacts produced by the Group’s activities and value chain and, vice versa, emphasizing positive ones.

The above categories were asked to assess a long list of impacts, both positive and negative, actual and potential, identified as potentially material for SACMI. The results of this engagement were then merged with those obtained from internal assessments carried out by the Working Group.

Significant impacts, risks and opportunities and their interaction with strategy and the business model

The Group identified only one material opportunity related to ‘Affected Communities’: this was linked to positive impacts on the communities in which the Group operates. Its Group’s main reference communities are, naturally, located in those parts

of the world that are home to SACMI companies. Decisions about the projects the Group ultimately invests thus stem from listening to the specific needs of those communities.

Policies relating to affected communities

SACMI adopts a series of policies designed to pursue communities’ interests in compliance with ethical standards and current legislation. These include the Group-wide ‘Policy on charitable donations’ and ‘Policy on subsidiessponsorships’, both of which are the responsibility of the Board of Directors.

Most Group commitments concern healthcare, assistance and education, sports associations, plus cultural bodies/events.

With regard to the Policy on charitable donations’, the aim is to regulate the procedures for requesting, approving and providing any donation or gift by SACMI Group companies. The Policy on subsidies-sponsorships’, instead, exclusively concerns the approval and provision of subsidies or sponsorships provided by the Group’s Italian companies.

To support as many communities as possible, SACMI promotes its projects on the Group’s social media channels and through the local press and corporate intranet page. It also illustrates its actions and the relative motivations together with representatives of the communities involved.

Local communities are involved at the impact assessment phase through public meetings and consultations. Furthermore, maintaining steady relations through local representatives lets the company gather reports, suggestions or perceptions of risk/impact, especially those that concern the more vulnerable members of society

Processes for involving communities affected by impacts

When choosing projects in which to invest resources and capital, the Group takes the perspective of the affected communities into account and actively integrates their viewpoints into its management of social, environmental and economic impacts. This is achieved by listening to local authorities and communities and talking with them; outcomes of public meetings are incorporated into the impact assessment processes, helping to define corrective/ improvement actions at both operational and strategic level.

Engagement occurs when new activities or significant changes are planned. Impacts and results are continuously monitored by way of informal consultations, periodic meetings and local community forums. Note also that engagement and results monitoring is supervised by the Board of Directors in coordination with the Boards that support the corporate Governing Bodies.

Lastly, the effectiveness of Group-implemented actions on affected communities is tracked via the quantity and quality of stakeholders involved by observing project outcomes and listening to the needs of the communities on an ongoing basis

Actions taken by the Group are designed to be inclusive: this involves the mapping of all potentially affected communities, especially

the more vulnerable members of society. This approach relies on the targeted involvement of local associations that work in direct contact with groups most at risk of social exclusion and/or on the identification of vulnerabilities.

Communication channels with local contacts remain open at all times: should events produce negative impacts on people or communities, specific response mechanisms are activated.

Management of significant risks and opportunities regarding communities

The above-described mechanisms apply to almost all SACMI companies and the aim is to continue extending and standardizing the strategies adopted at Network level.

In the case of SACMI Imola, the company engages in across-the-board initiatives that involve public institutions, civil organizations and other businesses with the aim of addressing social impacts on local communities in a systemic, collaborative manner to create shared, long-term solutions. Note that the company belongs to the main industry-specific organizations which seek to promote and disseminate best practices along the entire value chain.

The process of identifying any needs and requirements and the relative introduction of actions/goals involves discussion with local contacts and, in the case of public events, the communities themselves. In addition to donations and charitable contributions, projects of significant interest to the local community are also pursued through other routes such as partnerships with schools and universities. In 2024, the Group detected no significant negative impacts and no significant human rights issues related to local communities.

Auditorium 1919

In 2024, the SACMI Imola Auditorium 1919 hosted no less than 56 official events . These included internal training sessions, members’ assemblies and meetings open to customers, schools and citizens.

Beginning with the Members’ Assembly of Cluster Mech - the regional mechatronics Clusterthe year continued, in March, with the traditional presentation of the Vini Buoni D'Italia guide, edited by Touring Club Italiano.

In May, the Auditorium hosted the final of the ‘ Vitamina C ’ competition, organized by the Alliance of Italian cooperatives in support of young people and their entrepreneurship projects. With 8,200 students and 405 classes taking part, the ‘final’ came down to 17 cooperative business projects with a sharp focus on sustainability and inclusion.

In June SACMI presented, as it does every year, its Annual Report and Integrated Sustainability Report to banking institutions . The same month, it also hosted the Professione Medica Conference.

September, instead, was dedicated to Innovation Open Week held in parallel with the international Tecna ceramic and surface technology fair in Rimini. This intense month involved both the production departments and the Tiles and Sanitaryware Labs and saw coordination with other events at SACMI facilities in the area (SACMI Tech, SACMI Forni & Filters, BMR, Italvision).

In October came SACMI Digital Days ’: crucial meetings, open to all workers, designed to illustrate the Digital Innovation & Automation Hub and its activities, boost the company’s ‘digital culture’ and provide a better understanding of key projects.

To round off the year, the Auditorium hosted a celebration of SACMI Imola’s 105th anniversary. On 2nd December there was a public presentation of the book SACMI: from workshop to worldwide success. Origins of an extraordinary cooperative experience ’ by Valter Galavotti.

2024 was a special year for the parent company SACMI Imola, which celebrated its 105th anniversary by opening its doors to the public.

Almost 5,000 people attended the Open Day on Saturday 30th November, giving everyone an opportunity to get a close look at ‘all things SACMI’, from production to cutting-edge research.

The event included 13-stage guided tours of the plant to explore SACMI’s key production and innovation nodes, taking in the Rigid Packaging lab, the industrial press assembly and testing department, machine tools, Quality Control, Computer Vision, plus the Ceramic and Whiteware Labs.

The day saw the active involvement of all personnel with over 100 volunteers helping to manage access points and guided tours; there were also special events for children and youngsters to give them some fun, first-hand insights into the challenges posed by sustainability, robotics and AI.

High attendance on the part of local families highlighted SACMI’s close ties with the city of Imola, with which it shares the goals, principles and values that have underpinned the company’s long history and are now taking it into the future.

sacmi.com

The value chain | 6

Suppliers | 6.1

Managing relations with suppliers

To establish long-term partnerships that allow growth and mutual development, SACMI bases relations with suppliers on the principles of openness equity and fairness

Aware that a company's environmental and social responsibility extend beyond its own operating perimeter, the Group is committed to promoting responsible conduct along the entire value chain.

SACMI has always sought to build strong, lasting, trust-based relationships with suppliers and promote a resilient, sustainable model through monitoring, assessment and the application of its Sustainable Procurement Policy

Supply chain partnerships, integration with local economic ecosystems

SACMI-designed solutions - which can differ considerably in complexity and size - are characterized by specific market positioning in terms of performance quality and price

Suppliers of parts or machines made to SACMI specifications - identified on the basis of product type and, therefore, the machine pool and how it is organized - all operate according to a framework that ensures quality control, monitoring of the various stages of production and, consequently, cost control and prompt delivery.

They also share a desire to invest in their company to help it grow and to meet the needs of both customers and the related markets. This strategy has allowed SACMI to provide competitive products while guaranteeing the highest quality. It has helped build and strengthen its international leadership, generating value that is largely redistributed via the supply network.

SACMI strengthens the local ‘ecosystem’ of skills, entrepreneurship and know-how in areas where it manufactures by making good use of - and, where possible, favoring - local suppliers. This logic, a historical consequence of the parent company, SACMI Imola, being an integral part of the mechatronics district, also applies at Group level.

The percentage of local suppliers remained extremely high in 2024, resulting in strong economic and employment performance in the relative communities. Suppliers continued to be involved in ESG-related issues and actions in 2024 through monitoring, evaluation and implementation of the Sustainable Procurement Policy

The SACMI Group currently has over 8,000 suppliers who provide a vast range of goods and services that include:

• raw materials

• machine parts or machines made to SACMI specifications

• commercially available components or machine parts purchased from catalogue

• machines made by suppliers as per their own design

• consultancy, investment and other services (transport, logistics, packaging), the latter mostly outsourced and provided internally.

In 2024, SACMI purchased goods and services with a total value of approximately 892.5 million euros

892,537,118

1 “Regional suppliers” refers to all those suppliers based in the same Region in which the Group company that made the

is located.

“National suppliers” refers to all those suppliers based in the same Country in which the Group company that made the purchase is located.

“Continental suppliers” refers to all those suppliers based in the same Continent in which the Group company that made

chase is located.

“Global suppliers” refers to all those suppliers based outside

The partnership principle - which takes a long-term approach based on trust, transparency, proprietary and the application of a win-win mindset - is the bedrock of the relationship between the SACMI Group and its suppliers. The results are evident in the quality of the products and the ability to anticipate market needs. This has not, however, impeded exploration of new industrial hubs in all the areas of the world where the Group operates in order to locate specific skills and pre-empt production problems.

Some 90% of the supply network is made up of local suppliers based in the same region or country in which the Group company that made the purchase is located.

This translates into high levels of induced economic value and employment in the relative areas, particularly in Emilia-Romagna, where the parent company, SACMI Imola , is based: this region moves the largest purchasing volumes and is home to many of the strategic suppliers with whom the company has established decades-long relationships, thus driving development of the local social, economic and employment ecosystem.

Know-how transfer, quality assessment

SACMI monitors the quality of its suppliers to ensure products meets the highest quality standards, whether they are made internally or on suppliers’ premises; this ensures it is able to rely on a flexible production system that lets it respond quickly to market changes and fluctuations in demand.

Suppliers of products made to SACMI’s specifications are subject to a 4-monthly quality appraisal that involves Purchasing Management, the Quality Control Service and the Assembly Service Should findings highlight any issues, corrective action is decided on together with the supplier; should problems persist the supplier is piloted towards a repositioning in terms of both product complexity and sales volume.

Monitoring the quality of third-party suppliers , who supply plant parts made to their own design, consists of an annual appraisal that involves the SACMI bodies that work with these suppliers. Each of these bodies makes a qualitative assessment by way of a scoring system that comprises the quality of the products and services provided. The result is a performance chart that provides an intuitively understandable ‘snapshot’ of the supplier or a more relative view providing comparison with previous years’ results or with similar suppliers (benchmarking).

of Non-Conformities or inconsistencies between invoices and purchase orders that required clarification. If only SMEs are taken into consideration, the data remains largely the same.

Moreover, the Group has developed financial tools such as factoring to meet any specific supplier needs that differ from the agreed conditions, once again regardless of the supplier’s business sector or size. The entire invoice reception and management process has been digitalized to minimize any delays in payment that might stem from misunderstandings or incorrect interpretations of data. As of 31st December 2024 there were no ongoing legal proceedings concerning delayed payments

SACMI is committed to the principles expressed in the Group Code of Ethics also in the field of supplier relations. Hence its structured supplier selection process, which begins with an inspection of the potential supplier's premises and a meeting with the owners. In addition to aspects concerning production and the quality of services offered, these meetings also explore issues regarding workers' rights 2: freedom of association, collective bargaining and the non-use of child labor. The Purchasing Department is responsible for ensuring that all new suppliers comply with the above principles.

suppliers

SACMI prefers not to hold shares in suppliers of made-to-specification items as it does not wish to alter a balance, built up over the years, that enhances their entrepreneurship; it favors relationships based on continuity, transparency and respect for customer-supplier roles, even when partners.

However, the SACMI Group has a different strategy in the plant engineering area where, to cover strategic sectors or penetrate new market segments, it continues to benefit from a policy of targeted takeovers.

SACMI suppliers are structured in a way that supports the Group throughout the entire production process. To speed up management of business/technical information and minimize the time needed to process it ( Supplier Relationship Management ), SACMI has invested in integrated supply chains by developing and equipping itself with dedicated Business-to-Business IT tools. These automate the sending of purchase orders, technical drawings, shipping info and responses from suppliers concerning confirmed dates and specific documentation when requested. local

Payments and Code of Ethics

In keeping with the above-outlined principles, SACMI believes compliance with agreed payment deadlines to be essential to good relations with suppliers, whether they be SMEs or large companies.

Specifically, payment terms are negotiated with suppliers and have medium- to long-term validity. The applied terms may vary, with payment being made, on average, between 30 and 120 days from the end of the month in which the invoice was issued.

In 2024, 92% of Group payments to suppliers complied with the payment terms set out in the contract; the exceptions concerned management

Sustainable Procurement Policy

In addition to the above-described process, the Group has had a Sustainable Procurement Policy in place since 2022; it was one of SACMI's first steps towards more responsible management of the supply chain.

This document requires that Group suppliers be assessed and audited according to social and environmental criteria. More specifically, the Policy states that suppliers must comply with certain requirements relating to social and ethical issues linked to treatment of employees and that they must commit to reducing all forms of environmental impact. From an environmental perspective, the Sustainable Procurement Policy focuses on: 2

• optimized use of energy resources

• use of renewable energy

• efficient use of raw materials to maximize product ‘circularity’.

Suppliers are required to work closely with SACMI on the above-mentioned issues in order to improve their own performance and, consequently, that of the Group.

The Group Purchasing Manager is responsible for implementing the Policy and monitoring the Group's operations to ensure compliance. The policy in question applies to all SACMI Group companies and affects their suppliers and business partners as it guides the selection criteria for new suppliers and the relationships the Group establishes along its supply chain. Application of the material topic ‘Respect for human rights’ along the SACMI value chain involves the same Sustainable Procurement Policy (upstream from the supply chain) and the Group Code of Ethics (both upstream and downstream)³.

Self-assessment (Synesgy)

To assess and monitor its supply chain, the SACMI Group has entered into an agreement with CRIBIS, a CRIF Group company. This agreement involves suppliers joining Synesgy . The latter is a global digital platform which, via compilation of a self-assessment questionnaire, rates suppliers’ overall commitment to environmental, social and governance issues , which are now an integral part of the evaluation process alongside the aspects of service, affordability and quality. Aspects monitored via Synesgy relate to the following areas:

• Environment management of water and energy resources, waste and scrap management, environmental certifications.

• Social : personnel management, certification and compliance with standards, relations with stakeholders, support for the community • Governance : framework and composition, certification and compliance with standards.

The platform operates according to a methodology based on international standards that include the Global Reporting Initiative (GRI), the UN Global Compact, the Carbon Disclosure Project (CDP) and European Taxonomy guidelines.

In 2024, self-assessment involved 870 main suppliers, of whom: 21.1% completed and certified their questionnaire; 13.6% are in the process of responding to the questionnaire; 2.5 have registered on the Synesgy platform. For 62.8% of all the suppliers involved, onboarding on the platform is in progress. During 2025, another 4,500 suppliers will undergo statistical assessment.

involved in 2024 Sustainable Procurement Policy: self-assessment questionnaire

3 For further information, see also chap. 2, Governance, section 2.4, "Business integrity, certification and management systems". key suppliers

Policies connected to workers in the value chain

The SACMI Group is committed to the well-being of workers in the value chain, especially workers operating upstream of its own production process.

This explains why the Group's approach to managing impacts, risks and material opportunities related to ‘Workers in the value chain’ mainly consists of adopting and applying the Group's Sustainable Procurement Policy; the latter is published on the company website dedicated to SACMI suppliers, making it fully accessible to all parties affected by the provisions contained therein and those involved in its implementation.

Furthermore, again in collaboration with CRIF Group company CRIBIS, which specializes in ESG issues, SACMI has organized several successive training courses and meetings to illustrate its supplier-focused Sustainable Procurement Policy 4

Processes to address any adverse impacts in the supply chain

The SACMI Code of Ethics demands that the Group repudiate any action or conduct that might harm not only its employees but also other persons operating along its value chain. Inviting a selected panel of suppliers to join the Synesgy platform is an initial step towards introducing specially-designed processes and controls and could lead - together with assessment of the ESG performance of the suppliers themselvesto identification of any issues related to workers' rights along the Group’s supply chain. At present, no significant cases of non-compliance have been found . Mapping shall be extended to all SACMI suppliers in the coming years.

Scenarios and trends in 2024

2024 was an encouraging year. After years of sustained growth, there was a to-be-expected slowdown in the Ceramics and Whiteware Business. However this was partly offset by the strong performance of the other Businesses, particularly Rigid Packaging.

Actions to normalize inventory levels continued. Attention to stocks - which grew significantly during the pandemic years due to component rationing - was meticulous and remains so. Efficient inventory control is now pursued through Corporate-level plans consisting of coordinated projects, guided by regularly reviewed divisional goals.

While the fundamentals still fall short of pre-Covid levels, a partial recovery of competitiveness on custom components and substantial stability on commercial ones has been observed.

To sum up, 2024 can be seen as a year of ‘stabilization’ on the procurement market, following a ‘fretful’ phase in terms of both lead times and price trends.

4 For further details refer also to section 6.3, “External workers”.

Customers | 6.2

SACMI pursues technological and market leadership in all the sectors where it does business by focusing on design skills and seeking out innovative solutions. The ability to engage not simply as a supplier but as a solutions-focused consultant - from ‘project concept’ to the technological construction of the plant and its correct installation, start-up and running - is a SACMI hallmark that forms the basis of mutually rewarding long-term relationships with customers.

The SACMI Group sells products and services all over the world the only exception being Oceania. Some 85% of SACMI's business is done with foreign customers. SACMI generates a little over 15% of its revenues in Italy where the Parent Company is based. This is mainly through the sale of Ceramic machines and plants (these account for more than 65% of overall volumes in Italy); the bulk of volumes on the Italian market are accounted for by the Tiles and Whiteware businesses.

Exports account for 96% of Rigid Packaging business revenues, China being the main market, followed by Africa. The Packaging & Chocolate business achieves a significant portion of its sales in Europe (44%) and the Americas (32%).

Customers differ considerably in terms of structure, size and assets. Moreover, different business areas typically have different customer types.

SACMI bases

Partners in development

Customer relations are built on a continuous quest for excellence and ceaseless quality control: this is why SACMI periodically monitors, directly and indirectly, customer satisfaction, the aim being to amass all elements that might be useful for improving goods and services.

SACMI bases customer relations on the partnership principle , which aims to:

• guarantee the effectiveness of control systems throughout the production process

• provide consultancy and training on proper plant use

• involve customers at the product design stage.

After-sales service is a salient part of SACMI policy. Strengthened customer relations are needed to ensure maximum service efficiency and reliability.

Health and safety of customers and end users

Ensuring the health and safety of customers and end users is an essential part of the SACMI Group’s strategy and business model and is a top product design and sales priority. This reflects a clear focus on basic consumer rights such as the right to safety when using machinery and equipment.

To ensure high safety standards and protect customers and end users’ rights, the SACMI Group has integrated a series of measures into its strategy and business model. More specifically, it applies internal procedures to make sure products are properly designed and to identify/correct any non-compliance with current standards.

This meticulous control also extends to machinery and equipment supplied by third parties, which must comply with the EU Product Directive. To achieve these goals, a technical service that verifies the documentation of suppliers involved in installation on work sites was established in 2018. This aims to promote a shared culture of safety among both suppliers and customers. In parallel, safety technicians perform inspections on customer sites. This allows direct monitoring of suppliers’ work and the co-development of digital tools to ensure prompt sharing of information between SACMI technicians, suppliers and customers, thus improving coordination and transparency.

Some Group companies have also adopted reporting and coordination practices (e.g. drafting of periodic reports to monitor construction site safety 5 ). The fact that no significant non-conformities regarding product safety have been reported and that new supplier KPIs have been introduced underscores the Group's commitment to customers’ rights and safety.

These tools and processes allow SACMI to actively integrate its stakeholders’ expectations, rights and opinions into its operations. This strengthens trust and drives sustainable development of the entire value chain, making the company not just a simple supplier but a valued consultant offering customized scheduled maintenance and assistance solutions 6

5 For further information concerning construction site safety and related procedures along the customer-supplier chain, see also the "Health and safety" section (chap. 5.1) and "Product quality and safety" section in this chapter.

6 For a description of the types of assistance offered and the approach taken, see also the “Digital and on-site assistance” section at the end of this chapter.

Significant impacts, risks and opportunities and their interaction with corporate strategy

During the double materiality analysis process, the Group identified the following impacts as material:

• Health and safety for end users

• IT security for customers and end users

• Access to information

The Group also identified Green Innovation opportunities as material.

These impacts stem from strategy and the corporate model: they also and orientate such strategy, building partnerships that put efficient control systems in place throughout the entire production process.

The Group has not identified any specific material risks relating to end consumers. However, it reserves the right to monitor such aspects in the future in keeping with the development of its double materiality assessment procedure, which may involve the establishment of processes dedicated to the management and segmentation of its user base.

Customer and end-user policies

The Group’s approach to managing material impacts, risks and opportunities concerning ‘Consumers and end-users’ mainly consists of adopting the Group Code of Ethics and the ‘Quality, Safety and Sustainability’ policy (in which ‘ Machinery-Related Design and ‘ Contract Safety Management procedures are particularly relevant for Customers). These measures aim to guarantee end-users’ safety by ensuring products are correctly designed and compliant with ethical and regulatory standards. At present the SACMI Group has no significant cases of non-compliance with international regulations and guidelines.

Product quality and safety

With regard to the material topic ‘Product quality and safety’, the Group focuses on ensuring that all products are safe for consumers and compliant with applicable regulations. To this end, and to manage the impacts and opportunities related to this material topic, SACMI applies internal ‘Contract Safety Management’ and ‘Machinery-related Design’ procedures. These aim to ensure that all SACMI-made products are safe via enforcement of the applicable Directives and Regulations (e.g. EU Machinery Directive 2006/42/EC ). In general, the goal is to provide products that are ethically safe for consumers and compliant with the legislation in force in the country of installation.

Responsibility for applying and monitoring these measures falls to the Technical Director or the Product Safety Officer . Furthermore, the procedures in effect consider the interests of stakeholders, especially those of suppliers and customers.

Procedures are periodically reviewed and updated during technical management ‘alignment’ meetings; in parallel, technicians responsible for on-site safety inspect the work suppliers do for the Group on customer sites. Since these are purely internal procedures, dissemination occurs via Product Safety share points, newsletters, periodic meetings with Technical Management and training on the latest machine safety developments or associated technical standards. Furthermore, disclosure of the actions contained in the procedures is entrusted to the various corporate departments that interface with external stakeholders.

Ethics and integrity in business conduct

As regards the material topic ‘Ethics and integrity in business conduct’, the SACMI Group is committed to ensuring that all actions are conducted in full compliance with the principles of fairness, lawfulness and transparency . To this end, and to manage impacts and opportunities concerning this material topic, the Group Code of Ethics is applied: the latter defines the principles that guide the Group’s organization and actions. It applies to all Group companies, wherever in the world they may operate, and therefore applies to their relationships with customers.

With regard to business relations, the SACMI Group is committed to competing fairly in compliance with competition regulations and as per the provisions of Italian D.Lgs. 231/2001

Responsibility for implementing and monitoring the Code of Ethics falls to the Board of Directors, which ensures its effective application. Drawn up

to take into account the interests of all those operating along the value chain, the Code promotes a widespread , shared culture of integrity . The Code of Ethics is made available to potentially affected stakeholders, both internal and external. Furthermore, a reference to the Code of Ethics is included in the general terms and conditions of sales contracts : by signing the contract, customers adhere to the principles of the Code and can consult it via a direct link provided in the relative contractual clause.

Communication tools and channels - such as online publication, intranet access and internal training - are used to disseminate the Code of Ethics and ensure a proper understanding of its implications. These tools also allow interception of any obstacles to dissemination or proper understanding of the Code so that prompt action can be taken.

Innovation capacity, Privacy and Cybersecurity

Issues relating to the topic of ‘ Innovation Capacity ’ are managed operationally at Technical Management level: each Business Unit has its own Research & Development office, responsible for monitoring and developing projects and, more specifically, selecting and prioritizing those with the greatest strategic and innovative impact.

With regard to the topic of ‘Privacy and Cybersecurity’, instead, the Group is currently in the process of formalizing policies aimed at managing impacts, risks and opportunities (IRO) connected to cybersecurity and privacy in order to strengthen digital governance and protect information (both internal and stakeholders’).

Processes for engaging with consumers and end users with regard to impacts

The SACMI Group operates according to a predominantly B2B business model. Any issues or negative impacts are managed at individual Business Unit level where there is direct contact with customers.

Should significant negative impacts be identified - especially where they concern product quality and safety - SACMI intervenes through:

• recall campaigns in cases where a defect might compromise the health or safety of the end consumer

• upgrade or improvement kits in the event of non-critical technical developments, to be installed by the maintenance service on the customer's premises.

These actions are implemented by the technical and sales departments in synergy with the relevant Business Units; they constitute the main tool for ensuring a fast, targeted response to any reports received.

Reports are managed directly via channels set up by individual Business Units – to which customers can turn should they encounter technical, business or quality issues – and through direct contacts with the Cybersecurity team, which helps customers prevent, detect or remedy any IT concerns.

SACMI has also adopted data exchange software in order to involve its technicians, suppliers and customers in the supplied product safety management process, especially at the on-site installation phase.

Action on significant impacts, risks and opportunities for customers and end users

With regard to the material topic of ‘Privacy and Cybersecurity’, the company has adopted and implemented a key action to mitigate the risk of compromising the IT infrastructure and violating its customers’ personal or corporate data

The action consists of effecting IT security measures, both technical and organizational, to protect company devices used by Customer Service personnel. The goal is to shield the integrity of the data and systems used in interactions with customers, both in the operational and after-sale phases. The expected results of this action are measured by specific KPIs concerning the following areas:

• management of company devices

• risk and vulnerability management

• IT supply chain management

• network management

• IT security event management (incidents included)

• cybersecurity skills and awareness training.

Broad in scope, this action covers the Group's entire IT infrastructure including both internal operations and the downstream value chain, particularly at customer contact points . Its effectiveness is monitored through internal audits and supervision by Top Management, with regular progress reports. This action is integrated into the company's financial planning and directly strengthens the Group's security measures and digital resilience

It allows the company to mitigate significant risks such as data loss and reputational damage and, at the same time, seize opportunities to reinforce customer trust and enhance SACMI’s positioning as a reliable technological partner attentive to information security. Decisions regarding the adoption of such measures are taken on the basis of risk assessments shared between IT, management and internal auditors.

The company monitors the effectiveness of the implemented policies and actions: it does so by engaging with customers and distributors, gathering feedback and logging any recurring complaints or issues, as well as through several indirect indicators, such as the level of B2B satisfaction. The level of ambition is currently defined in qualitative terms and linked to the general goal of improving transparency and traceability along the value chain. In 2024, no serious incidents or violations of rights related to consumers and/or end users were detected or reported.

Digital and on-site assistance

For some years now, the provision of assistance and maintenance services as part of Customer Service - also through the use of new digital tools in-Cloud data collection and process control - has been central to SACMI's development strategy and relations with its customer-partners.

More specifically, in the process control sphere, SACMI continues to offer services designed to implement a new approach to machine/plant maintenance: this takes the form of scheduled maintenance plans, ongoing monitoring of ‘plant health’ and the provision of ‘preventive’ spare parts kits. This approach aims to provide customers with long-term SACMI machine management and efficiency to prevent problems before they can actually occur, thus protecting the customer’s investment.

In recent years, Assistance Plans ( Smart & Secure Service ) and the addition of new functions on S.P.A.C.E. (SACMI Portal for Aftersales and Customer service Excellence) have become increasingly important. Machine design itself has further evolved, merging new ‘digital assistance’ services with process control functions, also through the use of new software and AI.

Revamping services have also assumed a more pivotal environmental performance role (by ensuring lower consumption, a better environmental profile, better workplace health and safety etc.): customers can use specific kits to boost the efficiency of existing SACMI machines and plants in terms of both production performance and consumption.

In terms of its customer consultancy role, SACMI has continuously developed initiatives that seek to provide training and disseminate industry-specific technical know-how: this is achieved by leveraging research to accelerate sustainable innovation and implementing new technologies, materials, processes and control systems.

All new developments are promoted through the Group's communication channels and by way of meetings held at its Network offices to keep customers abreast of new technologies and services. Additionally, SACMI is active in key international conferences and industrial organizations.

External workers | 6.3

Workers along the value chain

The SACMI Group acknowledges that the interests, opinions and rights of workers along the value chain are crucial elements that can be materially influenced by the company's activities. The Group's Code of Ethics demands rejection of any behavior that might harm not just its employees but all others operating in the supply chain.

From this perspective, identification and management of risks and opportunities relating to the rights of workers in the value chain is a key driver of SACMI's strategy and business model.

More specifically, the Group is aware that issues such as training, the nurturing of talent, respect for human rights (e.g. prevention of child and forced labor), compliance with working hours, collective bargaining agreements, freedom of association, dialogue with trade unions and compliance with supplier payment deadlines can have a significant impact on workers in the value chain. These aspects are monitored constantly and integrated into corporate governance to achieve continuous improvement and ensure corporate social responsibility.

Significant impacts, risks and opportunities and their interaction with strategy and the business model

As part of the double materiality analysis process, the SACMI Group involved suppliers and customers in the ‘stakeholder engagement’ process in order to identify and assess positive and negative impacts, current and potential, that might influence workers' rights along the value chain or the company's strategy and business model.

Assessment revealed two main material impacts:

• the potential positive impact of ‘Training and talent management in the value chain’

• the potential negative impact related to Non-compliance or lack of collective bargaining agreements along the value chain’, ‘Limitation of freedom of association along the value chain’, ‘Lack of dialogue with trade unions along the value chain’ and ‘Respect for human rights’.

The SACMI Group is committed to protecting worker's wellbeing throughout the value chain. These aspects are carefully monitored and integrated into corporate governance to ensure continuous improvement and proper corporate social responsibility

While workers were not directly consulted to gather their views, the involvement of suppliers and customers has nevertheless led to a better understanding of how workers along the value chain perceive things.

The SACMI Group is committed to integrating the findings of double materiality analysis into its strategy and business model and continuing to promote responsible management within the supply chain to ensure compliance with human rights and labor laws.

Over the coming years, SACMI also aims, as per regulations, to directly involve workers along the value chain in the impacts, risks and opportunities identification process.

Policies connected to workers in the value chain

The SACMI Group is committed to protecting the well-being of workers in the value chain - especially those operating upstream of its production process - through its Sustainable Procurement Policy . Further support stems from the Group strategy on human rights 7 and the provisions contained in the Code of Ethics, which demands that the Group repudiate any action or conduct that might harm its employees or other persons along the value chain . This commitment translates into actions consistent with the stated values, both internally and in relationships with stakeholders.

With respect to the latter, SACMI regularly verifies that its business partners - i.e. customers and suppliers - treat their workers in compliance with human rights, current legislation and social security/welfare obligations.

Actions on significant impacts, risk management and opportunities for workers in the value chain

The Group has defined and implemented a series of key actions to manage sustainability-related issues considered to be material for ‘Workers in the Value Chain’. These actions seek to prevent and mitigate potential/actual impacts and enhance material opportunities for workers in the value chain.

With regard to the material topic ‘Personnel training’, the SACMI Group is, together with CRIBIS, mapping strategic suppliers, particularly local and regional mechanical workshops. 8 The action is consistent with the ‘Sustainable Procurement’ policy and is designed to achieve the Group’s set goal, namely:

• Publication of the Supplier Code of Conduct

• Assessment of suppliers’ social compliance

• Identification of any issues requiring corrections or improvements

The purpose of this action – the costs of which are borne by the Operations Department, in coordination with the Group’s Sustainability team – is to promote, thanks to analysis of the gathered evidence, initiatives aimed at innovating processes and products and, in parallel, ensuring the safety, protection and well-being of workers along the value chain. The action covers the upstream value chain and its application has a medium-term time horizon.

7 See chapter 2, ‘Governance’, ‘Corporate Governance Model’ section, Human Rights Policy.

8 See also section 6.1, ‘Suppliers’ (self-assessment, Synesgy platform).

performance Environmental |

Environmental impact | 7.1 management

In 2024, the SACMI Group strengthened its systematic approach to environmental impact management by integrating it into its industrial strategy and sustainability policies. This aimed to achieve:

• lower energy consumption

• higher self-production from renewable sources

• efficient management of water resources and materials, plus monitoring and containment of in-atmosphere emissions.

Actions taken concerned both direct operational activities, through investment in energy efficiency and new photovoltaic systems, and improvements to environmental performance along the entire value chain

Proactive management of environmental impact was accompanied by accurate performance monitoring and initiatives to mitigate climate change in keeping with international best practices.

Energy management | 7.2

At Group level, energy requirements from fossil sources (electrical energy + fuels) amounted to 107,925 MWh in 2024.

The share of energy self-produced (>2.6 million kWh in 2024) and/or obtained from renewables continues to grow. Monitoring of indirect machine emissions (Scope 3) has now begun

Consumption of other fossil sources

Consumption of coal and coal-based products

Consumption of crude oil and petroleum products

Consumption of natural gas

Consumption of self-produced electricity from trigenerator fueled with natural gas from grid

Consumption of self-produced electricity fed into grid

Total

The table shows the share of self-produced electricity fed into the grid.¹

In 2024, at Group level, the electrical energy (EE) requirement from fossil fuels was: 33,388.9 MWh. This figure was obtained by adding consumption relating to electrical energy purchased from fossil sources to consumption of electrical energy self-produced by trigenerator, net of the quantity of self-produced electrical energy fed into the grid.

At Group level, electrical energy consumed from renewable sources (purchased + self-produced) is made up of:

• electrical energy, heat, steam and cooling purchased or acquired from renewable sources: 4,165.4 MWh

• energy self-produced from renewable sources 2,649.7 MWh.

This gives a total of 6,815.1 MWh Energy from nuclear sources amounted to

MWh.

Therefore, in 2024, at Group level:

• the electrical energy requirement from fossil fuels, renewable sources (self-produced + purchased) and nuclear amounted to: 40,483.3 MWh

• the total energy requirement - when considering total consumption of fuels from fossil sources, renewable sources (self-produced + purchased) and nuclear - amounts to: 114,919.5 MWh

In 2024, 16.8% of electrical energy consumed at Group level came from renewable sources, either purchased or self-produced (while consumption of fuels from renewable sources stood at 463 liters).

At parent company level (SACMI Imola SC), 2024 saw a 2.5% increase in the share of purchase certificates with Guarantee of Origin (GO), with the total rising to 970,000.00 kWh or 970.00 MWh, equal to 10% of electrical energy purchased in 2024.

Electrical energy (EE) purchased from the grid in 2024 came to 9,627.8 MWh.

The following table breaks down the purchases.

Again with regard to the parent company, self-produced electrical energy (EE) stemmed from two sources:

16.8%

In 2024, at Group level of electrical energy consumed came from

12,717

The electrical energy self-produced and self-consumed by the Parent Company in 2024 amounted to 12,360.4 MWh (12,717.0 MWh minus the 356.6 MWh fed into the grid).

The Parent Company’s total electrical energy (EE) requirement in 2024 was: 21,988.2 MWh. In 2024, then, 56.2% of the Parent Company's total electrical energy requirement was self-produced (self-consumed). renewable sources total requirement MWh of self-produced electricity (SACMI Imola SC)

56.2%

Equal to of

The electricity energy consumption of the Parent Company accounted for, in 2024, approximately 54.3% of the total requirement.

Actions and resources relating to climate change policies

To implement the commitments defined in the Quality, Safety and Sustainability Policy, the SACMI Group performed various actions designed to mitigate its negative impacts on climate change , reduce risks and pursue material opportunities related to the ESRS ‘Climate Change’ topic. Further actions were also planned for the future.

To help mitigate climate change during 2024, the parent company, SACMI Imola SC, focused on improving the energy efficiency of its plants and on self-production of energy from renewable sources. Key initiatives included the construction of a new, highly energy-efficient automated warehouse which will reduce energy consumption by 15% compared to the previous facility. In absolute terms, an energy consumption of 75 MWh per year and an emissions reduction of 23 tCO2eq per year are estimated.

The above Group energy consumption graph highlights a clear prevalence of fossil fuels over renewables and nuclear.

The pie chart shows the Parent Company's electricity consumption as a percentage of the SACMI Group total.

The graph shows how over half of the Parent Company's electricity requirements are covered by self-production (photovoltaic and trigenerator).

In parallel, work to expand the 1.166 MWp photovoltaic system got under way (this system is in addition to the 2.1 MW of rooftop solar panels inaugurated in 2023). This project is expected to increase energy production by 1,365,210 kWh/year , all destined for self-consumption. Other actions – currently in progress, which the Parent Company plans to complete in 2025 – include augmenting the efficiency of the air handling units (AHU) in building W37: the estimated savings will be about 360,000 kWh/year. Moreover, the installation of a new high-efficiency refrigeration unit for machinery will improve the EER from 4.65 to 5.52.

Similarly, in 2024, SACMI Engineering India installed two new photovoltaic systems at its Ahmedabad and Morbi sites, with respective capacities of 250 kWp and 75 kWp . Both are expected to be operational by mid-2025.

With a view to climate adaptation and improved building energy performance, the parent company, SACMI Imola SC , plans to renew the exterior insulation cladding on three of its plants (W19, W25, W33), the roof insulation on two other buildings and the hot fluid pumping unit substation.

The 2025 climate change mitigation action plan also provides for the installation of a new photovoltaic system at the SACMI Do Brazil headquarters, designed to cover all of the site’s available surface area. This will provide a total of 120 kWp with monthly output estimated to be 15,000 kWh (180,000 kWh/year), all earmarked for self-consumption. A significant reduction in Scope 2 GHG emissions is therefore expected.

Likewise, Protesa plans to install a photovoltaic system in 2025. This will provide a total of 135 kWp and produce renewable energy entirely intended for self-consumption on company premises. The estimated yearly output is 169,000 kWh/year

To combat climate change, Riedhammer – which had its environmental management system certified as per ISO 14001:2015 in October 2024 –has, instead, developed and implemented a plan to reduce the number of deliveries by 5% this will involve identification of the leading causes of overdelivery and an analysis/review of internal processes.

Reducing the number of deliveries will mean less use of fossil fuels and have a positive effect on the corporate culture in terms of environmental awareness and reputation. Broad in its scope, this long-term plan will involve areas as diverse as assembly, assistance and shipments and will involve both internal personnel and those in the downstream value chain (carriers and suppliers).

At present, the project is in its early stages: priorities need to be established and employees will require training on environmental issues (e.g. implementation of adequate safety measures when storing hazardous substances).

On the energy efficiency front, Riedhammer is focusing on making its office heating and hot water systems more effective. Temperature and ventilation control systems inside offices, together with adequate long-term employee training is expected to reduce the company's energy consumption by 6%

At the end of 2024, the total electrical energy produced by photovoltaic systems installed by SACMI Group companies was approximately 2,618,815 kWh

In detail:

• SACMI Imola SC, parent company: installed power 2.1 MWp and 2,444,994 kWh of selfproduced electrical energy.

• BMR: an installed power of 0.105 MWp capable of self-producing 62,673 kWh of electrical energy.

• Euroelettra: an installed power of 0.019 MWp capable of self-producing 17,806 kWh of electrical energy.

• SACMI Molds&Dies: an installed power of 0.101 MWp capable of self-producing 70,806 kWh of electrical energy.

• Tecnos: an installed power of 0.050 MWp capable of self-producing 22,536 kWh of electrical energy.

Other noteworthy projects include Protesa’s planned 2025 installation of new refrigeration units and heat pumps these will ensure the new metrology room is an air-conditioned, temperature-controlled environment.

2,618,815 1.746

(total energy produced for self-consumption in 2024) of newly installed power by the end of 2025

Thanks to the new projects being implemented this year (the SACMI Do Brasil plant, Protesa, plus the two SACMI Engineering plants in Sanand, the Ahmedabad Factory and the Morbi Office), by the end of 2026 the SACMI Group (within the considered perimeter of 51 subsidiaries) will further increase its total installed photovoltaic capacity to 4.1 MWp from which 4,860,000 kWh of self-production is expected. Compared to 2024, that’s an approximate increase of 85%.

GHG emissions

Monitoring greenhouse gas emissions ² is a key element of SACMI's climate strategy. Energy-related direct emissions (Scope 1) and indirect emissions (Scope 2) have been reported.

Direct Emissions (Scope 1)

Scope 1 emissions include all emissions that stem from the use of fossil fuels for operational activities. In 2024, the Group's Scope 1 emissions amounted to 14,144 tCO 2 eq (tons of CO 2 equivalent).

During the year, no emissions from coal, other fossil fuel or climate-altering refrigerant gases were recorded. This data reflects operational choices aimed at limiting the use of fuels with high environmental impact. Indirect emissions (Scope 2)

Indirect Emissions (Scope 2)

Indirect emissions from purchased electricity (Scope 2) were calculated using both methods:

emissions (Scope 2 market-based)

The difference between the two values is linked to the energy mix , which includes supplies from both conventional and low-environmental-impact sources, with Guarantee of Origin-certified energy increasingly being used. Note that data provided by SACMI subsidiaries in 2024 came from 19 different countries worldwide: for each of these a specific conversion factor was used for both the MB and LB approaches³.

Total emissions Scope 1 and 24 5

Adding the contributions of direct and indirect emissions, the annual total for 2024 stands at:

• 26,258.3 tCO2eq according to the location-based approach

• 26,495.3 tCO2eq according to the market-based approach

Scope 3 emissions (Category 11)

As part of an analysis of greenhouse gas emissions along the entire value chain, assessment of Scope 3-linked emissions hot spots began in 2024 (base year). Beyond this year, it was decided to focus the calculation on GHG Protocol Category 11, that is, emissions deriving from the use of sold products. Estimation of indirect emissions in tCO2 eq linked to product use

3 For the EU, the average emissions factor considered is 0.35 tCO2/MWh (European Environment Agency (EEA), “CO2 emission intensity of electricity generation” report (data updated 2023-2024). The result derives from the weighted average of CO2 emitted to produce electricity using fossil fuels which stands at around 350 kg of CO2 per MWh > 0.35 tCO2/MWh (https://www.eea.europa. eu/ims/co2-emission-intensity). Some countries (e.g. France, Sweden) have lower values for the national energy mix, while other more “carbon-intensive” countries (e.g. Poland, Germany) consider a higher value. The EU average is 0.35–0.36 tCO2/MWh.

4 The ESRS provides for two Scope 2 emissions calculation methods: Location-based and Market-based. To calculate Scope 2 emissions as per European Sustainability Reporting Standards (ESRS), both methods were used. The Market-based method looks at CO2 emissions by suppliers from whom the organization purchases electrical energy via contract: calculations consider any Guarantee of Origin certificates and emissions factors relative to the ‘residual mix’ (i.e. untracked or unclaimed energy and emissions). The Location-based method looks at average emissions factors relating to energy generation within well-defined geographical boundaries (which may be local, sub-national or national). Scope 2 emissions calculated with the Location-based and Market-based methods are expressed in tCO2eq.

5 Electrical energy self-produced by photovoltaic systems installed at SACMI sites is reported in Scope 2. As this is energy from a renewable source, the related emissions are zero, as per GHG Protocol criteria.

over its lifespan (considering annual electricity, natural gas and refrigerant gas consumption) involved the use of formulas defined by the GHG Protocol.

Given the SACMI Group’s global reach, it was essential to select appropriate EFs (emission factors) that reflect the country or area where the SACMI product will actually be used.

Emissions associated with this category amount to approximately 15,198,167 tCO2eq for the year.

Comparison with energy-related direct (Scope 1) and indirect (Scope 2) emissions – which total 26,258.3 tCO2eq (LB) – highlights how the use-phase of the product (industrial machinery) lifetime represents the largest part of SACMI's carbon footprint. Indeed, it accounts for over 99.8% of the reported annual total (an order of magnitude of 45:1 compared to the sum of Scope 1 and Scope 2 emissions).

This data further strengthens SACMI's resolve to design its products in an ecofriendly, innovative way to improve environmental performance throughout their entire life cycle.

The graph compares the Location-Based and Market-Based approaches to the total of Scope 1 and Scope 2 GHG emissions. 99.8%

GHG emissions (tCO2e)

The following ‘GHG Emissions’ graph compares the different types of emissions: Scope 1, Scope 2 (LB), Scope 2 (MB) and Scope 3.

In practical terms, renewable sources used in 2024 prevented emissions equal to those of approximately 1,100 cars in a year (ref.: annual emissions of an average car, approximately 2.2 tCO2eq7).

Emissions reduction initiatives

In 2023, the Group strengthened its commitment to lowering indirect emissions caused by employees' daily commutes by promoting sustainable mobility solutions that match the company's environmental goals.

Key initiatives included encouraging employees to work from home, where compatible with duties, and the installation of EV charging stations in company car parks. The use of low-emissions vehicles such as trains and bicycles was also encouraged, also by participating in dedicated local projects.

Sustainable mobility and shared responsibility: Bike to Work

Results (January-May

In 2025, SACMI Imola renewed its participation in the ‘Bike to Work Imola’ project: in the period January-May, tracking showed that employees cycled a total of about 31,800 km to and from work.

This initiative is estimated to have prevented around 4,460 kg of CO 2 emissions, reinforcing the company’s commitment to more responsible, environment-friendly mobility.

SACMI also takes part in projects to improve home-work transit systems to reduce traffic and emissions in urban areas.

2025) km kg

31,800 4,460 travelled by bicycle of CO2 emissions prevented Integrated Annual Report 2024 / Environmental performance / Energy management

7 Average emissions of a car in Europe = approximately 120–140 g CO2/km (according to European Environment Agency - EEA and WLTP 2023 source). Average distance driven in Europe: approximately 15,000 km/year. Calculation: 130 gCO2 /km×15,000 km = 1,950,000 gCO2= 1.95 tons of CO2. Many official sources (e.g. EPA - American Environmental Protection Agency and reports by NGOs such as Carbon Trust) round this up to between 2–2.2 tons of CO2/year for an ‘average car’. Reference sources: European Environment Agency - ‘Monitoring CO 2 emissions from new passenger cars and vans in 2023’; https://www.eea.europa.eu/publications/monitoring-co2-emissions-2023; EPA (USA) - ‘Greenhouse Gas Emissions from a Typical Passenger Vehicle’; https://www. epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle..

Water resources | 7.3

management

Actions related to water and marine resources

In 2024, the SACMI Group took steps to ensure responsible, sustainable management of water resources, in keeping with its Quality, Safety and Sustainability Policy and the corporate strategy presented and approved by the Sustainability Board on 20 September 2024. These actions allowed the Group to mitigate its negative impacts on water, reduce risks and pursue material opportunities related to the ESRS ‘Water and marine resources’ topic.

Groundwater level monitoring and ‘water stress’ analysis allow assessment of priorities and the drawing up of water efficiency measures, also in relation to local climate or regulatory trends

Key actions implemented by the parent company, SACMI Imola SC include:

• accurate monitoring of water volumes entering the industrial purifier and the related ‘m³ purified/hours of work’ indicator in the departments involved

• monitoring of m³ of water pumped from wells and aquifer levels to ensure compliance with environmental authorizations; supply sources (wells or mains) can be switched by means of dedicated valves

• monitoring of volumes of emulsifying fluids disposed of to identify opportunities for improvement, especially in the area of heavy machine tool fluid management

• installation of anti-Legionella devices in mains water systems, with the dual goal of reducing health risks and preventing water waste.

In 2024, the volume of water treated by the SACMI Imola purifier remained practically unaltered: it increased by just 4.7% (8,055 m³ against 7,901 m³ in 2023) despite a rise in working hours in the departments involved (74,447 hours against 73,170 in 2023). The indicator based on the ratio between these values decreased by 6.38% compared to the previous year.

SACMI Engineering India adopted a sustainable water management strategy, reducing consumption and discharging via a wastewater treatment plant. Treated water is reused for non-potable uses and returned to the subsoil to preserve aquifers. These actions aim to improve efficiency, reduce costs and protect local ecosystems. Already operational, this strategy addresses risks related to water scarcity and seizes on economic and regulatory opportunities. Future investment and training are planned to expand recycling capacities, with a sharp focus on the most vulnerable areas.

The table below summarizes the SACMI Group's water withdrawals/ consumption, sub-divided by water stress level. Stress analysis was performed by starting from the physical location of SACMI facilities and verifying results via the Aqueduct Water Risk Atlas portal8

The

This yields the graph below:

Analysis of water withdrawals shows that most water (85.4%) is taken from zones classified as having low-medium water stress levels. Only a limited proportion (6%) comes from ‘extremely high stress’ areas, which nevertheless still account for a significant percentage of all monitored areas (35%).

‘Low’ and ‘high’ stress areas are marginal in terms of water volumes withdrawn (both stand at 0.1%), suggesting a withdrawal pattern that leans towards prudence and sustainability . Concentration of consumption in less critical areas is indicative of an operational approach that is attentive to the environment; however, it also shows there is room for improvement in terms of optimizing water use even in less sensitive areas. The current configuration provides a solid basis for the adoption of targeted efficiency and risk management measures in areas subject to greater vulnerability.

Water stress analysis by zone and consumption (m³)

Water consumption by the Group in 2024 was as follows:

Considering the distribution by water stress level, most of the analyzed areas fall into extreme or mediumlow water stress zones:

• “Extremely high”: 35% of zones (21 out of 60)

• “Low-Medium”: 33.3% of zones (20 out of 60)

These two extremes cover almost 70% of locations, indicating strong polarization. In terms of distribution of the consumption, the latter is not directly proportional to the number of zones:

• 57.6% of consumption occurs in medium-high stress areas, which account for just 16.7% of all zones (10 out of 60). This means that most water-intensive activities are concentrated in areas that are already under pressure.

• extreme stress areas account for 26% of consumption, a significant figure considering the potential operational risk.

Even though sites are present in high water stress areas, a significant share of consumption (15.4%) is concentrated in areas that are less water-critical. Only 27% of consumed water comes from areas in which water stress is classified as ‘extremely high’.

In strategic terms, SACMI mainly focuses assessment of water efficiency measures in ‘medium-high’ and ‘extremely high’ zones to reduce exposure to risk. Targeted analysis is in progress to further assess the feasibility of investing in water recycling/recovery systems.

This data could provide greater motivation for the inclusion of environmental mitigation actions in sustainability plans, especially if accompanied by an analysis of local climate or regulatory trends. To sum up, the analysis highlights an uneven distribution of water consumption with respect to the stress levels in the areas where the company operates. In particular, a significant share of overall use is concentrated in areas of ‘medium-high’ or ‘extreme’ water stress where resource availability is already critical. This highlights the need to strengthen water management strategies and enhance process efficiency by evaluating technological solutions for water recovery and, where possible, reducing dependence on water sources in sensitive areas. These considerations are part of the company's broader commitment to sustainable management of natural resources and deeper integration of environmental factors into operational and strategic decision-making.

Group-level waste management can be broken down as follows:

Materials and waste | 7.4

management

Actions relating to the use of resources and the circular economy

In 2024, the SACMI Group took actions designed to develop a circular economy and ensure responsible, sustainable resource management in keeping with the Quality, Safety and Sustainability Policy and the corporate strategy presented and approved by the Sustainability Board on 20th September 2024. These actions have allowed the Group to mitigate its negative impacts, reduce risks and pursue material opportunities as per the ESRS ‘Use of resources and the circular economy’ topic.

The main project - active since 2022 - involves mapping of waste flows in the Group’s Italian subsidiaries, the aim being to re-purpose and convert waste materials into by-products

On SACMI production sites, the Sustainable packaging ’ project, coordinated by the parent company SACMI Imola SC continued: this aims to reduce the amount of machine packaging, replace it with alternative materials and recycle/reuse materials (e.g. containers/pallets) following delivery to the customer.

This ‘Sustainable Packaging’ approach was applied by SACMI Verona home to a good part of Sanitaryware machine production operations. A pilot project to reuse packaging material - with extremely low implementation costs (limited to the cost of transporting the material) – provided substantial savings in 2024.

The ‘sustainable packaging’ project remains a key priority, as does waste flow mapping to achieve the ‘circular economy’ goal of converting waste into a resource

Type and quantity of waste produced (t) Waste generated

Hazardous waste saved from disposal

Hazardous waste saved from disposal through preparation for reuse

Hazardous waste saved from disposal through recycling

Hazardous waste saved from disposal through other recovery operations

Non-hazardous waste saved from disposal

Non-hazardous waste saved from disposal through preparation for reuse

Non-hazardous waste saved from disposal through recycling

Non-hazardous waste saved from disposal through other recovery operations

Hazardous waste sent for disposal

Hazardous waste sent for incineration

Hazardous waste sent to landfill

Hazardous waste sent for disposal through other disposal operations

Non-hazardous waste sent for disposal

Non-hazardous waste sent for incineration

Non-hazardous waste sent to landfill

Non-hazardous waste sent for disposal through other disposal operations

Waste not recycled

Percentage of waste not recycled

In aggregate terms, SACMI produced a total of 9,083 tons of waste in 2024, of which over 84%, or 7,663 tons was sent for recovery, recycling or reuse. More specifically, 7,063 tons of non-hazardous waste was diverted from disposal by preparing it for reuse, recycling and other forms of recovery while the amount of hazardous waste recovered amounted to 600 tons.

The total quantity of waste produced equals the sum of waste recovered and disposed of sub-divided into hazardous and non-hazardous. This approach allows accurate monitoring of management methods in compliance with regulatory requirements and best practices in terms of transparency. Subdividing data by treatment type (reuse, recycling, incineration, landfill, other operations) also aids the identification of priority areas for continuous improvement.

In 2024, 39% of all waste was effectively sent on for recycling This demonstrates the company's commitment to true circularity (not just recovery but actual recycling of material).

Non-recycled waste includes all waste the Group did not manage through recycling operations. This also includes some waste diverted from disposal (through reuse or other recovery methods) and is calculated by subtracting the following items from total waste:

• hazardous waste saved from disposal through recycling

• non-hazardous waste saved from disposal through recycling.

The percentage of non-recycled waste is therefore equal to the percentage of waste the Group did not manage through recycling operations.

Circular economy initiatives

In terms of current and potential impacts on the value chain, most projects involve solutions that encourage the adoption of a circular economy logic by customers/users of SACMI products These projects include both the development of technologies and processes - also by taking advantage of new opportunities offered by digitalization - and research into new materials that are easier to recycle and/or have less environmental impact10

dried ceramic powder. This initiative reduced the total amount of waste by approximately 144 tons by managing it as a by-product). For fired waste, instead, the recycling chain was shortened.

• internal reuse of plastic waste : in 2024 we started making boxes for the new warehouse by reusing plastic waste, thus preventing the purchase of 22,500 kg of virgin plastic.

• oily emulsions : the reduction-optimization project again produced substantial results in 2024, further reducing the consumption of virgin emulsifiable oil.

With regard to management of waste materials on its production sites, the Group actively seeks to raise awareness vis-a-vis proper management of all waste and encourages, where possible, actions to reduce it.

During the year, the SACMI Group continued to invest - through partnerships with specialized companies - in projects that improve circularity and make use of production waste.

For example, some of the initiatives taken by SACMI Imola concerned:

• wood waste: recycling of a good portion of the waste material to produce pallet blocks by sending it on to a specialized company.

• ceramic waste: by-products of factory tests are used to obtain a semi-finished product which, in turn, is reused to produce spray-

Furthermore, an increase in the quantity of oily emulsions (CER code 12.01.09) was recorded: in 2024 it amounted to 503,080 kg against 333,668 hours worked in the departments involved. The indicator based on the ratio between these values decreased by 2.92% compared to the previous year, demonstrating steady improvements to production process efficiency.

This reduction was achieved thanks to ongoing implementation of the following:

• tracking consumption of the emulsifiable oils disposed of improving oil warehouse management

• installing meters to monitor tank inflow on each machine tool

• creating a KPI for oil consumption (liters consumed/hours worked).

Pollution | 7.5

Actions relating to pollution

In 2024, SACMI accurately monitored its in-atmosphere emissions, ensuring transparency and traceability of key pollutants. CO 2 emissions, which amounted to 6,373 tons, were the single biggest contributor to climate impact.

Other pollutants included emissions of non-methane volatile organic compounds (NMVOC), totaling approximately 138 tons, and atmospheric particulate matter (PM), totaling approximately 16 tons. In 2024, Non-methane Volatile Organic Compounds (NMVOC) accounted for 75.1% of recorded atmospheric emissions.

Emission levels for methane (CH 4 ) and hazardous substances such as HAP and POP are zero or very low, reflecting a growing focus on reducing those substances that have the greatest impact on health and the environment.

Group-level polluting emissions for 2024 are shown in the following table 11

2

organic pollutants (POP)

(CH4)

air pollutants (HAP)

particulate (PM)

The Group's polluting emissions concern only the atmosphere: data therefore relates to ‘air pollution’.

1

Methodological Note

The purpose of the 2024 Integrated Annual Report published by the SACMI Group (hereafter also ‘Group’ or ‘SACMI’) is to provide stakeholders with clear information on its approach and performance in the environmental, social and economic sustainability spheres with a view to comparison and continuous improvement

The principles of reciprocal assistance, both internal and external, have been an intrinsic part of SACMI and its nature as a Cooperative since its founding. These principles extend throughout the SACMI Network, taking, year by year, the form of practical action: from projects designed to safeguard the environment and enhance skills to those that seek to provide new opportunities for communities, both locally and internationally in the countries where the Group operates.

In 2024, the Group began the process of gradually adapting to the requirements of EU Directive 2022/2464 (Corporate Sustainability Reporting Directive - CSRD).

Accordingly, the process of selecting the contents of this Annual Report was based on the results of the double materiality analysis conducted by the Group in the second half of 2024. This analysis used the general requirements of the European Sustainability Reporting Standards (ESRS 1) as guidelines¹.

The quantitative data and qualitative information contained in this Annual Report refer to the tax year 2024 (1st January - 31st December). The reporting perimeter refers to the parent company SACMI IMOLA SC and subsidiaries fully consolidated in the Group's Consolidated Financial Statement on 31st December 2024. Data and information concerning the environmental performance of the following companies are excluded: SACMI Deutschland GmbH, P&C Imola SpA, Riedhammer Industrieofenbau Gmbh, Riedhammer Japan Co Ltd and Surface Inspection Ltd. These companies are exclusively non-manufacturing concerns: given their limited environmental impact, such data is not deemed relevant to a proper understanding of the Group's activities and its environmental performance. Any further limitations on the scope of individual topics or KPIs are expressly stated in the text.

To ensure data is reliable, the use of estimates has been limited as much as possible and is, where present, indicated.

This document is drawn up annually. It was submitted to the Board of Directors of SACMI IMOLA S.C. for approval on 16th May 2024. The document is not subject to external assurance.

Contacts and addresses

Should you wish to make any comments or requests or offer any suggestions regarding this Annual Report please write to sostenibilita@sacmi.it

The Annual Report is available on the www.sacmi.com website.

SACMI IMOLA SC Via Selice Provinciale 17/A, 40026 Imola (BO) – Tel. 0542 607111

Coordination

SACMI Public Relations Office

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