EL.En. (ELN) Investor Update summary

Transaction overview and rationale

• Sale of a 59–59.18% stake in Penta Laser Zhejiang to YOFC for CNY 240 million (approx. EUR 30.5 million), valuing the company at CNY 405 million (approx. EUR 51.5 million), with closing expected within 90 days.

• Cutlite Penta remains fully owned by El.En.; it was excluded from the deal due to negative customer reaction and governance concerns, preserving Italian control and brand identity.

• Ot-las retains a 19–19.2% stake in Penta Laser Zhejiang, with a lock-up until 2027 and a put option at 1.05x net asset value.

• Agreement includes price adjustment clauses and unlimited indemnity for two specific legal and impairment cases.

• Divested activities will be excluded from El.En.'s consolidation perimeter after closing.

Financial impact and use of proceeds

• PLZ generated €81.8 million revenue and -€7.1 million EBIT in 2024, with a positive net financial position of €9.8 million.

• The sale is expected to generate a consolidated gross capital gain of about €6 million, subject to final adjustments.

• Sale proceeds will primarily repay financing from El.En. to Ot-las, strengthening the group’s net financial position and supporting future growth investments.

Strategic and operational implications

• Collaboration with YOFC is expected to revitalize Penta Laser Zhejiang, leveraging YOFC’s technological expertise.

• Italian operations in laser cutting will focus on expanding international presence and maintaining a strong made-in-Italy identity.

• No immediate plans for further divestment of the Italian industrial business; strategic alternatives may be considered in the future, excluding Chinese partnerships.

• Continued investment in distribution network, with nine direct sales subsidiaries in Europe by end-2025.

• Ongoing growth initiatives in marking business and other industrial segments.