Franchi Umberto Marmi S p A : HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

INDEX

COMPANY DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Composition of Corporate Boards.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

INTERIM REPORT ON OPERATIONS ON THE FINANCIAL STATEMENTS AS OF 30 JUNE 2023.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

General information.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Half-yearlyreport.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Share trend.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Franchi Umberto Marmi share performance in the first half of 2023.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Non-IFRSmeasures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Environmental Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Information relating to personnel relations.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Secondary offices

16

Main risks and uncertainties to which the Company is exposed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk management and type.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Financial risks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Risk related to the current global economic and financial situation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Operational Risks.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks associated with relations with suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Risks associated with dependence on senior management and qualified personnel.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risks related to trends in the construction sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Risks associated with the increase in raw material prices and energy costs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Risks associated with the reference regulatory framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Risks associated with the failure to extend authorisations and/or concessions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Risks associated with applicable tax legislation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Risks related to compliance with environmental legislation and in the field of occupational health and safety.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Research and development activities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Relations with subsidiaries, associates, parent companies and companies subject to the control of the latter.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Number and nominal value of treasury shares or stakes of parent companies.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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Number and nominal value of treasury shares or stakes in parent companies purchased or sold.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Privacy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

INTERIM CONDENSED FINANCIAL STATEMENTS AS AT JUNE 30, 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Interim condensed statement of financial position

26

Interim condensed income statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Interim condensed statement of other comprehensive income .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Interim condensed statement of changes in equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Interim condensed statement of cash flows .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

EXPLANATORY NOTE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Content and form of the interim condensed financial statements.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Declaration of compliance and accounting principles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Summary of the accounting principles applied. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Estimates and assumptions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Accounting principles, amendments and IFRS interpretations adopted from January 1, 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 IFRS accounting standards, amendments and interpretations not yet approved by the European Union.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Relevant transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Key Events in the First Half of 2022.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Notes on the Interim Condensed Statement of Financial Position.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 1 - Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2 - Property, plant and equipment.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 3 - Investments.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 4 - Other non-current assets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 5 - Deferred tax assets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 6 - Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 7 - Trade receivables.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 8 - Tax receivables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 9 - Other current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 10 - Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Liabilities and Total equity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 11 - Total equity.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 12 - Current and non-current portion of borrowings.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

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13 - Current and non-current leases liabilities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 14 - Current and non-current financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 15 - Defined benefit plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 16 - Deferred tax liabilities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 17 - Trade payables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Notes to the Interim Condensed Income Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 18 - Revenues.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 19 - Costs for services.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 20 - Personnel costs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 21 - Financial income and expenses.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 22 - Income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 23 - Basic earnings and diluted earnings per share. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 25 - Information relating to intercompany transactions and those with related parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 26 - Costs for Directors, Board of Statutory Auditors and Independent Auditors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 27 - Significant events occurring after the end of the period.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 28 - Financial risk management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Categories of financial assets and liabilities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Credit risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Liquidity risk .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Market risk.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Exchange rate risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Interest rate risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

REPORT OF THE AUDITING COMPANY.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

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FRANCHI UMBERTO MARMI S.P.A.

COMPANY DATA

Tax Code 10283160967 - VAT No. 10283160967

Head Office: Via del Bravo 14- 54033 Carrara (MS)

R.E.A No. MS - 139347

Massa Carrara Companies Register No. 10283160967

Fully paid up share capital € 6.923.625,79 i.v.

www.fum.it/en

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HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

Composition of Corporate Boards

Board of Directors

Alberto Franchi (Chairman)

Bernarda Franchi (Deputy Chairman)

Paolo Orlando Daviddi (Director)

Marco Galateri di Genola e Suniglia (Director)

Gianluca Cedro (Director)

Gualtiero Vanelli (Director)

Andrea Franchi (Director)

Davide Giovanetti (Director)

Maurizio Saravini (Director)

Maurizia Olga Leto di Priolo (Indipendent Director)

Roberto Lettieri (Indipendent Director)

Board of Statutory Auditors

Andrea Marche (Chairman of the Board of Statutory Auditors)

Massimo Gabbani (Standing Statutory Auditor)

Filippo Caleo (Standing Statutory Auditor)

Independent Auditor

Deloitte & Touche S.p.A.

Euronext Growth Advisor

Intesa Sanpaolo S.p.A.

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HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

INTERIM REPORT ON OPERATIONS ON THE FINANCIAL STATEMENTS AS OF 30 JUNE 2023

General information

The Company is incorporated and domiciled in Carrara and governed by the laws of Italy. The Company has its registered office in Carrara (MS) - Via del Bravo 14.

The company, founded in 1971, is based in Carrara, country of origin of white marble, and has been operating in the stone industry for 50 years. It is active in the processing and marketing of blocks and slabs of Carrara marble, natural stone expression of "Made in Italy" and luxury, thanks to its special features and unique characteristics nationally and internationally.

Historically, the company was focused only on the marketing and processing of marble blocks and slabs mainly in the local area. Later on, it managed to pursue a policy of growth by expanding its activity on national and international markets, thanks to a constant professional commitment over the years, thus becoming one of the most important sector operators.

The company's products include marble blocks and slabs, different in colour and structure. The Company benefits from constant sources of supply, being able to rely on supply relationships consolidated over time with companies active in the extraction sector and thus being able to access the raw material extracted from quarries located in the Apuan-Versilian district. These relationships are also strengthened by the direct holding in some owning companies and/or quarry sites dealer and in mining companies in which stake is held directly or indirectly by controlling shareholders of the Company itself. The Company obtains its supplies from the largest and most productive quarries in the Apuan stone district, from which different kind of materials are extracted, considered to be among the most valuable in the area.

The diversification of supply sources allows the company to have access to the whole range of materials, thus permitting a careful selection of materials and the supply of a considerable quantity of constant quality material. The Company stands out for the care and the particular attention paid in the selection of materials by operating a constant control on the product quality through a rigorous monitoring every step of the working process, from the supply of raw materials to the marketing of blocks and slabs. As a matter of fact, the Company mainly works with valuable materials, as it uses Carrara marble.

The management believes that the high professional skills of the Company's workforce guarantees an excellent level in quality, also enhancing a rapid response to the customers' needs.

The activity of the Company is mainly held in a 60,000 square meters headquarters, where five modern sheds used as materials showrooms are located, and a building in which administrative offices are placed. In the historic headquarters of the Company, located in Via Canalie 10 in Carrara, the sawing of marble blocks mainly takes place.

Around the Company's headquarters three different buildings and a pavilion have been created. The formers are dedicated to the display of stone materials, the latter was built as a meeting room and a showroom for marble items, used both as exhibition space for pieces of furniture and design items, and as think tank for designers and open space for events.

In recent years, the Company has pursued a geographic diversification strategy by increasing its commercial position on international markets. In particular, the Company markets its products in various countries including, among others, China, Saudi Arabia, the United States, Indonesia, Turkey, Qatar and Australia.

The Company also extended its commercial operations in Australia by acquiring 49% of the company Franchi Umberto Marmi Australia PTY Ltd in November 2019, in 2023 incorporated into FUM Australia PTY Ltd, of which the Company acquired 49%, in the Italian market by acquiring 50% of the shares of the company Ingegner Giulio Faggioni Soc. Consortile in January 2021 and 51% of the shares of the company Recovery Stone S.r.l. in December 2021, and in the US market by acquiring 33% of the shares of the company CIOT New York Inc. in December 2021.

The Company's customers are mainly major resellers (dealers) operating in the main national and international markets, including Daltile (United States), Antolini (Italy), Marmoles Arca (Mexico), Ciot Group (Canada).

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HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

The analysis of the Company's situation, its performance and its results are examined in the next paragraphs, dedicated to the market context, the products offered, the investments made and the main economic and financial indicators. The interim condensed financial statements as at June 30, 2023 (hereinafter the "Interim Condensed Financial Statements as at June 30, 2023") were prepared in accordance with IAS 34 - Interim Financial Reporting.

Half-yearly report

The business results achieved in the first half of 2023 confirm the good performance of the business, although slightly down compared to the revenues achieved in the same period of 2022 that were supported by significantly high orders attributable to the recovery recorded in the post-pandemic markets and the consequent need to replenish stocks by distributors. Also in 2023, revenues for the first half of the year confirm a period of sustained growth recorded from 2018 to today.

The result achieved in the Middle East is particularly important and the area represents the third destination in order of importance for revenues and will certainly constitute a market of strategic interest for our Company in the future in view of the important projects that will be developed in the area and which have been announced by the main market players.

The Interim Condensed Financial Statements as at June 30, 2023 closes with a profit for the period of Euro 8,108 thousand (Euro 9,278 thousand in the first half of 2022). Compared to the previous period, the revenues achieved through stone material trading and processing decreased by Euro 3,884 thousand, equal to a decrease of approximately 9.4%. The decrease is essentially attributable to what was stated above together with the fact that, in the previous period, some shipments linked to important projects in the Middle East, Italy and China had been concentrated.

EBITDA at June 30, 2023 was equal to Euro 13,233 thousand, and it decreased compared to the first half year of 2022 (Euro 16,529 thousand). This difference is essentially attributable to the lower business volume achieved compared to the previous year and to the slight worsening in the mix of products sold, in which the most valuable materials Calacatta and Statuario represented about 50.7% of the slabs and blocks sold in 2023, compared to 58.3% in the previous period. It should be noted that during the first half of 2023, the Company incurred costs equal to Euro 115 thousand relating to the acquisition of the shares of the company Marmoles Man S.r.l. finalized in July 2023, whereas during the first half of 2022 it had incurred costs amounting to Euro 127 thousand relating to the proposed translisting operation on Euronext Milan, whose timing are still subject to evaluation.

Share trend

The Franchi Umberto Marmi share (Bloomberg ticket: FUM:IM / Reuters ticket: FUMA:MI), is listed on the Euronext Growth Milan market organized by Borsa Italiana S.p.A.

The reference shareholder is Holding Franchi S.p.A, owning 62.73% of the share capital. Other significant shareholders are A.F. Società Semplice and B.F. Società Semplice both owning 6.74% of the share capital and La Civilità del Marmo S.r.l. owning 10.12%. The remaining part represents the floating capital of the Company and it is owned by institutional investors and by private investors (retail).

The graphical representation below shows the share trend of Franchi Umberto Marmi during 2023 (in blue), compared with the FTSE MIB index (in orange).

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HALF-YEARLY FINANCIAL REPORT JUNE 30 2023

Franchi Umberto Marmi share performance in the first half of 2023

Closing price as at June 30, 2023 (€)	7,78
Half-yearly change	(16,7%)
Maximum price (€)	9,80
Minimum price (€)	7,66
Average price (€)	8,77
Average trading volume in number of shares (n. of shares)	2.810,3
Market capitalization - as at June 30, 2023 (€ mln)	254,4

Non-IFRS measures

This Report on Operations contains financial measures that are not recognized by IFRS. These measures are termed "non-IFRS measures" because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. Management uses such measures to assess the financial performance and liquidity of the businesses.

Management believes that these and similar measures are used widely by certain investors, securities analysts and other interested parties as supplemental measures.

For a correct interpretation of these Non-IFRS measures, please note the following:

• the Non-IFRS measures are constructed from historical data and are not indicative of the future performance of the Company itself. Specifically, they come from the Company's interim condensed financial statements as at June 30, 2023 and are presented in comparison with the data from the interim condensed financial statements as at June 30, 2022 and/or the annual financial statements for the year ended December 31, 2022.
• Non-IFRSmeasures are not measures whose determination is regulated by international accounting standards (IFRS) and, although derived from the interim condensed financial statements as at June 30, 2023, they are not audited or reviewed.

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