Sabaf S p A : Interim management statement at 31 March 2024

INTERIM MANAGEMENT

STATEMENT

AT 31 MARCH 2024

SABAF S.p.A.

Via dei Carpini, 1 - OSPITALETTO (BS), ITALY

Fully paid-in share capital: € 12,686,795

www.sabafgroup.com

Table of contents
Group structure and corporate officers	3
Consolidated statement of financial position	4
Consolidated Income Statement	5
Consolidated statement of comprehensive income	6
Statement of changes in consolidated shareholders' equity	7
Consolidated statement of cash flows	8
Total financial debt	9
Explanatory notes	10
Management Statement	12
Statement of the Financial Reporting Officer pursuant to Article 154-bis (2) TUF	19

Sabaf Group | Interim management statement at 31 March 2024

2

Group structure and corporate officers

Parent company

SABAF S.p.A.

Subsidiaries and equity interest attributable to the Group

Companies consolidated on a line-by-line basis
Faringosi Hinges S.r.l.		Italy	100%
Sabaf do Brasil Ltda. (Sabaf Brazil)	Brazil	100%
Sabaf Beyaz Esya Parcalari Sanayi Ve Ticaret Limited	Turkey	100%
Sirteki (Sabaf Turkey)
Sabaf Appliance Components (Kunshan) Co., Ltd.	China	100%
(Sabaf China)
Sabaf US Corp. (Sabaf US)	U.S.A.	100%
A.R.C. S.r.l.		Italy	100%
Sabaf India Private Limited (Sabaf India)	India	100%
Sabaf Mexico Appliance Components S.A. de c.v.		100%
(Sabaf Mexico)		Mexico
C.M.I. S.r.l.		Italy	100%
C.G.D. S.r.l.		Italy	100%
P.G.A S.r.l.		Italy	100%
Sabaf America Inc. (Sabaf America)	U.S.A.	100%
Mansfield Engineered Components LLC (MEC)	U.S.A.	51%
Board of Directors
Chairman	Claudio Bulgarelli
Chief Executive Officer	Pietro Iotti
Director	Gianluca Beschi
Director	Alessandro Potestà
Director	Cinzia Saleri
Director (*)	Laura Ciambellotti
Director (*)	Michela Maurelli
Director (*)	Federica Menichetti
Director (*)	Daniela Toscani
(*) independent directors
Board of Statutory Auditors
Chairman	Alessandra Tronconi
Statutory Auditor	Maria Alessandra Zunino de Pignier
Statutory Auditor	Mauro Vivenzi
Sabaf Group | Interim management statement at 31 March 2024		3

Consolidated statement of financial position

		31.03.2024	31.12.2023	31.03.2023
	(€/000)
	ASSETS
	NON-CURRENT ASSETS
	Property, plant and equipment	107,316	108,741	102,855
	Investment property	668	691	898
	Intangible assets	59,616	57,231	55,717
	Equity investments	95	95	97
	Non-current receivables	1,415	1,094	2,901
	Deferred tax assets	12,060	13,315	13,223
	Total non-current assets	181,170	181,167	175,691
	CURRENT ASSETS
	Inventories	63,429	61,985	65,826
	Trade receivables	66,466	55,826	62,799
	Tax receivables	11,274	11,722	7,166
	Other current receivables	4,387	3,868	3,546
	Financial assets	6,601	7,257	2,531
	Cash and cash equivalents	31,166	36,353	21,865
	Total current assets	183,323	177,011	163,733
	ASSETS HELD FOR SALE	-	-	526
	TOTAL ASSETS	364,493	358,178	339,950
	SHAREHOLDERS' EQUITY AND LIABILITIES
	SHAREHOLDERS' EQUITY
	Share capital	12,687	12,687	11,533
	Retained earnings, Other reserves	104,456	97,656	115,176
	IAS 29 reserve	47,031	48,649	33,725
	Net result for the period	4,270	3,103	(791)
	Total equity interest pertaining to the Parent Company	168,444	162,095	159,643
	Minority interests	8,222	8,293	-
	Total shareholders' equity	176,666	170,388	159,643
	NON-CURRENT LIABILITIES
	Loans	78,912	81,547	81,016
	Other financial liabilities	11,721	11,721	-
	Post-employment benefit and retirement provisions	3,767	3,805	3,810
	Provisions for risks and charges	334	353	453
	Deferred tax liabilities	5,098	5,136	5,215
	Other non-current payables	218	183	-
	Total non-current liabilities	100,050	102,745	90,494
	CURRENT LIABILITIES
	Loans	24,003	23,317	29,344
	Other financial liabilities	267	175	388
	Trade payables	44,541	42,521	43,932
	Tax payables	3,615	3,025	2,823
	Other payables	15,351	16,007	13,326
	Total current liabilities	87,777	85,045	89,813
	LIABILITIES HELD FOR SALE	-	-	-
	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	364,493	358,178	339,950
Sabaf Group | Interim management statement at 31 March 2024		4

Consolidated Income Statement

(€/000)

INCOME STATEMENT COMPONENTS

OPERATING REVENUE AND INCOME Turnover

Other income

Total operating revenue and income

OPERATING COSTS Materials

Change in inventories Services Personnel costs Other operating costs

Costs for capitalised in-house work

Total operating costs

OPERATING PROFIT BEFORE DEPRECIATION & AMORTISATION, CAPITAL GAINS/LOSSES AND WRITE- DOWNS/WRITE-BACKS OF NON- CURRENT ASSETS (EBITDA)

Amortisation

Capital gains/(losses) on disposals of non- current assets

Value adjustments of non-current assets

OPERATING PROFIT (EBIT)

Financial income Financial expenses

Net income/(charges) from hyperinflation Exchange rate gains and losses

Profits and losses from equity investments

PROFIT BEFORE TAXES

Income taxes

NET RESULT FOR THE PERIOD

Of which:

Minority interests

NET RESULT ATTRIBUTABLE TO THE GROUP

	Q1 2024		Q1 2023	12 MONTHS
		2023

68,861	100.0%	58,063	100.0%	237,949	100.0%
2,138	3.1%	2,348	4.0%	9,056	3.8%
70,999	103.1%	60,411	104.0%	247,005	103.8%
(33,311)	-48.4%	(31,066)	-53.5%	(112,684)	-47.4%
1,718	2.5%	1,350	2.3%	(3,433)	-1.4%
(12,048)	-17.5%	(11,220)	-19.3%	(44,923)	-18.9%
(17,102)	-24.8%	(13,170)	-22.7%	(58,160)	-24.4%
(417)	-0.6%	(542)	-0.9%	(1,735)	-0.7%
729	1.1%	766	1.3%	3,542	1.5%
(60,431)	-87.8%	(53,882)	-92.8%	(217,393)	-91.4%
10,568	15.3%	6,529	11.2%	29,612	12.4%
(5,638)	-8.2%	(5,032)	-8.7%	(20,066)	-8.4%
43	0.1%	-	0.0%	1,516	0.6%
-	0.0%	-	0.0%	-	0.0%
4,973	7.2%	1,497	2.6%	11,062	4.6%
651	0.9%	90	0.2%	1,815	0.8%
(1,071)	-1.6%	(786)	-1.4%	(5,248)	-2.2%
341	0.5%	(1,407)	-2.4%	(5,276)	-2.2%
754	1.1%	(531)	-0.9%	(2,359)	-1.0%
-	0.0%	-	0.0%	-	0.0%
5,648	8.2%	(1,137)	-2.0%	(6)	0.0%
(1,180)	-1.7%	346	0.6%	3,386	1.4%
4,468	6.5%	(791)	-1.4%	3,380	1.4%
198	0.3%	-	-	277	0.1%
4,270	6.2%	(791)	-1.4%	3,103	1.3%

Sabaf Group | Interim management statement at 31 March 2024

5

Consolidated statement of comprehensive income

(€/000)

NET RESULT FOR THE PERIOD

Total profits/losses that will not be subsequently restated under profit (loss) for the period: Actuarial evaluation of post-employmentbenefit tax effect

Total profits/losses that will be subsequently reclassified under profit (loss) for the period: Forex differences due to translation of financial statements in foreign currencies

Hedge accounting for derivative financial instruments

Total other profits/(losses) net of taxes for the year

OVERALL NET RESULT

of which:

Overall net result for the period attributable to minority interests

Total profits/losses that will be subsequently reclassified under profit (loss) for the period:

Net result attributable to minority interests

NET RESULT ATTRIBUTABLE TO THE GROUP

		12
Q1 2024	Q1 2023	MONTHS
		2023
4,468	(791)	3,380
-	-	(48)
-	-	11
0	0	(37)
(3,997)	(2,338)	(25,713)
(62)	19	76
(4,059)	(2,319)	(25,674)
409	(3,110)	(22,294)
198	0	277
-	-	-
198	0	277
211	(3,110)	(22,571)

Sabaf Group | Interim management statement at 31 March 2024

6

Statement of changes in consolidated shareholders' equity

Share capital

(€/000)

Balance at 31 December 2022

11,533

Allocation of 2022 profit - carried forward

Share capital increase1,154 IFRS 2 measurement stock grant plan

Treasury share transactions

Change in the scope of consolidation Put options on minorities

Monetary revaluation - hyperinflation (IAS 29) Other changes

Total profit at 31 December 2023

Balance at 31 December 2023

12,687

Allocation of 2023 profit

• carried forward
• dividends Dividends to minorities
  IFRS 2 measurement stock grant plan Monetary revaluation - hyperinflation (IAS 29)

Change in the translation reserve

Other components of the total result

Total profit at 31 March 2024

Balance at 31 March 2024

12,687

Share

premium reserve

10,002

16,158

26,160

26,160

Legal	Treasury	Translation
reserve	shares	reserve
2,307	(3,221)	(54,715)

(462)

(25,713)

2,307 (3,683) (80,428)

(3,997)

(3,997)

2,307 (3,683) (84,425)

	Post-
	employment						Other		Profit for the
	benefit
					reserves			year
	discounting
	reserve
(328)	175,335	15,249
		15,249			(15,249)
		543
		(10,866)
		21,978
		(1)
(37)	76			3,103
(365)		202,314			3,103
		3,103			(3,103)
		235
		5,903
		(62)			4,270
		(62)			4,270
(365)		211,493	4,270

	Total Group			Minority				Total
	shareholders'					shareholders'
			interests
		equity						equity
156,162			-			156,162
-					-
17,312					17,312
543					543
(462)					(462)
-		8,016	8,016
(10,866)					(10,866)
21,978					21,978
(1)					(1)
(22,571)		277	(22,294)
	162,095			8,293			170,388
-					-
				-	-
				(453)	(453)
235					235
5,903					5,903
(3,997)		184	(3,813)
4,208		198	4,406
211		382	593
	168,444				8,222			176,666

Sabaf Group | Interim management statement at 31 March 2024

7

Consolidated statement of cash flows

(€/000)

Cash and cash equivalents at beginning of period

Net result for the period

Adjustments for:

• Depreciations and amortisation
• Realised gains/losses
• Valuation of the stock grant plan
• Monetary revaluation IAS 29
• Net financial income and expenses
• Non-monetaryforeign exchange differences
• Income tax

Change in post-employment benefit

Change in risk provisions

Change in trade receivables

Change in inventories

Change in trade payables

Change in net working capital

Change in other receivables and payables, deferred taxes Payment of taxes

Payment of financial expenses Collection of financial income

Cash flows from operations

Net investments

Free cash flow

Repayment of loans

Raising of loans

Change in financial assets

Purchase/sale of treasury shares

Payment of dividends

Cash flow absorbed by financing activities

Mansfield (MEC) acquisition

Acquisition of P.G.A.

Share capital increase

Foreign exchange differences

Net cash flows for the year

Cash and cash equivalents at beginning of year

Q1 2024	Q1 2023	12 MONTHS
		2023
36,353	20,923	20,923
4,468	(791)	3,380
5,638	5,032	20.066
(43)	-	(1,516)
235	(14)	543
425	1,769	7,521
(360)	581	2,164
260	-	-
1,180	(346)	(3,386)
(38)	149	107
(19)	(186)	(204)
(10,807)	(3,640)	7,375
(1,582)	(949)	4,079
2,144	4,304	2,438
(10,245)	(285)	13,892
(724)	421	2,528
(303)	(127)	(3,763)
(999)	(690)	(3,405)
375	90	1,925
(150)	5,603	39,852
(2,711)	(5,426)	(16,942)
(2,861)	177	22,910
(2,461)	(5,260)	(33,671)
495	7,610	25,552
274	(90)	(6,089)
-	(445)	(462)
(453)	-	-
(2,144)	1,815	(14,670)
-	-	(8,325)
-	-	(783)
-	-	17,312
(182)	(1,050)	(1,014)
(5,187)	942	15,430
31,166	21,865	36,353

Sabaf Group | Interim management statement at 31 March 2024

8

Total financial debt

	(€/000)	31.03.2024	31.12.2023	31.03.2023
A.	Cash	31,166	36,353	21,865
B.	Cash and cash equivalents	-	-	-
C.	Other current financial assets	6,601	7,257	2,531
D.	Liquidity (A+B+C)	37,767	43,610	24,396
E.	Current financial payable	2,658	1,799	6,638
F.	Current portion of non-current debt	21,612	21,693	23,094
G.	Current financial debt (E+F)	24,270	23,492	29,732
H.	Net current financial debt (G-D)	(13,497)	(20,118)	5,336
I.	Non-current financial payable	60,904	63,548	51,323
J.	Debt instruments	29,729	29,720	29,693
K.	Trade payables and other non-current payables	-	-	-
L.	Non-current financial debt (I+J+K)	90,633	93,268	81,016
M.	Total financial debt (H+L)	77,136	73,150	86,352

Sabaf Group | Interim management statement at 31 March 2024

9

Explanatory notes

Accounting standards and scope of consolidation

The Interim Management Statement of the Sabaf Group at 31 March 2024 is prepared in compliance with the Stock Exchange Regulations that establish, among the requirements for maintaining the listing on the STAR segment of the MTA, the publication of interim management reports.

This report does not contain the information required in accordance with IAS 34. Accounting standards and policies are the same as those adopted for preparation of the consolidated financial statements at 31 December 2023, which should be consulted for reference. All the amounts contained in the statements included in this Interim Management Statement are expressed in thousands of euro.

We also draw attention to the following points:

• The Interim Management Statement was prepared according to the "discrete method of accounting" whereby the quarter in question is treated as a separate financial period.
  In this respect, the quarterly income statement reflects the income statement components pertaining to the period on an accrual basis;
• the financial statements used in the consolidation process are those prepared by the subsidiaries for the period ended 31 March 2024, adjusted to comply with Group accounting policies, where necessary;
• the parent company Sabaf S.p.A., the subsidiaries Faringosi Hinges, Sabaf Brazil, Sabaf Turkey, Sabaf China, A.R.C., Sabaf U.S., Sabaf India, C.M.I., C.G.D., Sabaf Mexico, P.G.A., Sabaf America and Mansfield Engineered Components LLC (MEC), a U.S. company acquired in July 2023 through the subsidiary Sabaf America Inc. and consolidated as of 1 July 2023, were consolidated on a line-by-line basis.

The Interim Management Statement at 31 March 2024 has not been independently audited.

Sabaf Group | Interim management statement at 31 March 2024

10