Somec S p A : Consolidated Non-Financial Statement 2023

SUSTAINABILITY REPORT

2023

Consolidated non-financial statement pursuant to articles 3 and 4

of italian legislative decree 254/2016

INDEX

4	Letter from the Chairman
6	Introduction
8	Somec Group
10	The Group's identity
12	Business segments
14	Company structure
16	International presence
18	Governance, integrity and transparency
27	Products and services
34	The European Union Taxonomy
38	Turnover
46	Portion of capital expenditure - CapEX
54	Portion of operating expenses - OpEX

1. Sustainability at Somec
2. The value of responsibility

74	The value of our people
78	Employee health and safety
81	Employee well-being and retention
86	People around us: the local community

90	Environmental protection
92	Energy efficiency and measures to fight climate change
96	Responsible consumption of resources
100	Responsible management of procurement practices
103	Supply chain
107	Choice of materials: between innovation and responsibility
112	Methodological note
119	GRI Content Index

128	Auditor's report

Somec Group	Letter from
NFS 2023	the Chairman

OUR DAILY

COMMITMENT

TO RESPONSIBILITY

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Dear shareholders, employees and partners,

the many events that have taken place in recent times have profoundly marked the world scenario, at all levels. Five years ago, we were already focusing on the challenge of the twin green and digital transition when the pandemic broke out, causing long-lasting effects on our lives. Meanwhile, geopolitical tensions between the US and China, conflicts between Russia and Ukraine, and more recently in the Middle East, have further shaken the global picture.

Events that impact our everyday life, but which do not undermine our greatest strength: our ingenuity, commitment and dedication to creating a better future for our Group and society at large. After all, a wise Native American proverb reminds us that We do not inherit the earth from our ancestors; we borrow it from our children.

Before going into the details of our ESG projects, and to gain a full insight into the latter, I think it is useful to go through Somec's journey over the past year.

Business diversification in our three business units - i.e. Horizons: engineered systems for naval

architecture and building façades, Talenta: professional kitchen systems and products and Mestieri: design and production of bespoke interiors - is now a well-established fact that allows us to focus our energies and resources with concrete results in each of our business areas.

With regard to the first business unit, we are witnessing a significant recovery in the naval sector. A positive trend that, combined with our extensive experience and strong reputation, is enabling us to seize numerous opportunities. We also continued to win prestigious contracts in the civil sector, thanks mainly to Fabbrica, our overseas subsidiary operating in the American market, particularly in the East Coast of the United States. A major development in the last 12 months was the professional kitchen systems and products business unit we named Talenta. A brand that not only shines a spotlight on human ingenuity but also makes it available to the talent of restaurant owners and award-winning chefs. This was a significant step, including from a communication perspective, that will strengthen the business unit's market positioning.

With regard to mestieri, as little as two years after its incorporation it is recognised as a guardian of know-how featuring a wealth of manual skills and portraying high-end Italian craftsmanship, reminding us that the greatest asset of a company invariably lies with its people and their knowledge.

In this respect, 2023 saw us reach a significant milestone: we exceeded the 1,000-employee mark. An achievement resulting from commitment and dedication as well as the trust and support of our customers and partners. The efforts of this team, being both large and cohesive, allows us to take on new challenges and continue to grow by setting ourselves ever more ambitious goals.

These include the Group's continued commitment to the goals of the UN 2030 Agenda. Constant research and development endeavours enable us to provide increasingly innovative and high- performance solutions to help reduce the human impact on the planet. I am thinking, for example, of the contribution that our glazed curtain walls can make to buildings, significantly improving their energy efficiency. But mention should also be made of professional kitchen systems and products designed by Talenta to minimise consumption. All these being efforts that undoubtedly make us competitive in a society that is increasingly sensitive to these issues.

Moving from product to process, I would like to share another significant milestone reached as part of our commitment. For the first time, we have indeed published an inventory of indirect Scope 3 emissions for the year 2022, i.e. all emissions resulting from activities outside our organisation, such as those of suppliers and customers. This action allows us to fully understand the environmental impact of our value chain and take concrete measures to reduce it.

Among these, we believe in fully sharing the path we are embarking upon together with those
working inside and outside the Group. That is why we involved 700 people in our Stakeholder
Engagement questionnaire, with a high rate of retention. A significant response underlining how
employees and contractors feel they are part of a company-wide virtuous process. The results of
this engagement, which was analysed from various respects, will help us to identify priority areas
on which to focus efforts and resources.	5
The path has been outlined and, calling on each of us, will require an increasingly structured

organisation. In this regard, I would like to point out that our Internal Board Risk and Sustainability Committee has reached its second year of operation and we will shortly set up a special Executive Committee and introduce the ESG Manager role. This new organisation will allow our efforts to gain further momentum, ensuring a constant focus on these highly strategic issues.

In conclusion, our commitment to sustainability is becoming increasingly structured within the Group. The greater our size, the greater the efforts we need to make in order to make growth organic and harmonious. I am therefore convinced that this is the right way to make the Somec Group's dream come true: gaining global recognition - more and more every day - as the hub of Italian manufacturing quality.

Thank you,

Oscar Marchetto

Chairman of Somec S.p.A.

Somec Group	Introduction
NFS 2023

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The consolidated non-financial statement (hereinafter also "CNFS") for Somec S.p.A. (hereinafter also "Somec" or the "Group") was prepared in accordance with the provisions of articles 3 and 4 of Legislative decree n. 254/2016 - implementing EU directive 2014/95 ("Barnier Directive") - and subsequent amendments, regarding the non-financial reporting obligations of large public interest entities.

With Legislative Decree n. 254/2016, the Italian legislator has transposed the provisions of the Barnier Directive into Italian law concerning the disclosure of non-financial information and information on diversity by certain companies and certain large groups. In particular, as of the 2017 financial year, public interest entities (as defined by art. 16, paragraph 1 of Legislative Decree 27 January 2010, n. 39), of the dimensions defined by art. 2, paragraph 1, of Legislative Decree n. 254/2016 (a category that includes Somec), are required each financial year to prepare a non- financial statement containing information that provides the reader with an understanding of the company's business, its performance, its results and the impact it has in terms of environmental, social, human resources, human rights and anti-corruption measures, considered relevant based on the business and characteristics of the enterprise. Pursuant to article 2, paragraph 2 of Legislative Decree n. 254/2016, in the case of public interest entities that are parent companies of a large group, such as Somec Group, the non-financial statement must be drawn up on a consolidated basis in accordance with the provisions of article 4 of Legislative Decree n. 254/2016.

Pursuant to the provisions of articles 3 and 4 of the Decree, the objective of the CNFS is therefore to explain the organisational model, the business, the key risks (and related risk management approach) and performance indicators of the Somec Group in relation to environmental and social aspects as well as to human resources, human rights, and anti-corruption measures relevant to the business and characteristics of the Group.

According to the provisions of art. 5, paragraph 3 of the Decree, the non-financial statement is separate from the "Directors' Report" included in the Group's 2023 Consolidated Annual Financial Report. In accordance with the EU Taxonomy Regulation 2020/852, the Somec Group CNFS contains a specific section dedicated to the mapping of economic activities that respect the criteria 7 of eco-sustainability as defined by the legislation - and therefore can be considered "sustainable"

in the framework of the Taxonomy.

In 2023, Directive 2022/2464/EU, Corporate Sustainability Reporting Directive ("CSRD"), came into force, aiming to respond to the growing market demand for information on sustainability, with a view to increasing transparency and combating greenwashing. In addition to the significant increase in the group of entities that are required to comply with the obligation, the requirements companies are required to meet have likewise grown. Some of the new requirements include, by way of example: preparing forward-looking disclosure with short, medium and long-term deadlines; reference to financial disclosure and reporting on intangibles (i.e. intellectual, human, social and relational capital); the introduction of the concept of dual materiality, i.e. the company's impact on the community and vice versa; or reporting in accordance with the Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy Regulation.

Although CSRD will apply as of 2024 reporting, the Somec Group is working to ensure compliance with the requirements, based on the work done in previous years.

This is the fourth edition of the NFS for the Group and covers the reporting period running from 1 January 2023 to 31 December 2023. At the same time, it provides the reader with the tools for a comparison with figures from the two previous financial years.

Somec Group

NFS 2023

8

SOMEC GROUP

9

Somec Group	Somec
NFS 2023	Group

THE GROUP'S IDENTITY

THE HUB OF ITALIAN CONSTRUCTION QUALITY

The Somec Group brings together a whole range of companies highly specialised in the design, engineering and completion of large turnkey projects for naval architecture systems and civil façades, as well as for the production and installation of professional kitchens and the design and creation of fine interiors and customised architectural elements.

By relying on targeted acquisition and expansion operations, the Group aims to combine innovative skills and know-how with a view to achieving ever higher levels of excellence in its target sectors, to meet the needs of an evolving market. The Group's high level of expertise has allowed it to reach, and maintain, a leadership position on the market, a position it aims to develop and grow.

The Group's story began in 1978 in San Vendemiano (Treviso), thanks to the intuition of Aldo and Ermenegildo Sossai, who founded Somec S.p.A. and began making glass envelopes for the civil construction sector. After fifteen years, in 1993 Somec began designing, producing and installing windows and glass envelopes on cruise ships, thus expanding its business in the Seascape division which specialises in the Marine glazing segment. After further expanding into the marine refitting sector in 2005, the challenges brought about by the 2008 crisis for the Italian real estate market

10 paved the way for a marked change of direction, thus becoming a milestone in Somec's history: the management team, headed by Oscar Marchetto and composed of a group of entrepreneurs, launched the project "New horizons are where sky and sea meet".

The momentum created by this change of direction meant that in a short time Somec's sales capacity, in both the land-based and marine sectors, was greatly strengthened and diversified, preparing it for its expansion into new business sectors and geographic areas in the following years. By leveraging its established presence at major shipyards, in 2016 the Group entered the market for professional kitchens for cruise ships through the acquisition of Oxin, a company highly specialised in this field. At the same time, after establishing Fabbrica LLC (Somec gained the majority stake two years later) the Group expanded into the business of making glass envelopes for the civil construction sector in the United States. In the following years, the Group established a number of new companies and made several acquisitions - which, overall, helps strengthening the Group's presence in its business sectors: Inoxtrend, which operates in the professional kitchen supplies market, was acquired in 2017; Hysea, established during the same year in order to strengthen the Group's position in cruise ship public area interiors; Skillmax, specialising in turnkey construction projects for public area interiors; GICO and Pizza Group, which produce and install professional kitchens.

The establishment of Somec Shanghai in 2019, marked Somec's début in the Far East as of 2021/2022, and was just a precursor to one of the most important steps made by the Group in its 40-year history: in August 2020, Somec was listed on Borsa Italiana's Mercato Telematico Azionario (MTA).