Prima Sole Components S.p.A. seventh sustainability report is affected by the actual period of uncertainty that affects all the automotive market (representing one the markets with the strongest impact on the products supplied by the companies of our group), which despite being expanding it is however affected by important changes due to the ecological transition policy that in the coming years will impose a reorganization of the market balance, with the probable acquisition of ever - increasing market shares by players from the East.

In addition to this instability, the growth in financial interest rates has reached peaks that we have not been accustomed to for decades.

All the above is included in a scenario of political tensions with war conflicts (the Israeli-Palestinian conflict, in addition to the Russia-Ukraine crisis) that have influenced the stability of the markets, especially in the early phase of Uktraine-Russia conflict, where we have experienced high volatility in the prices of raw materials, crude and fuel gas, which reached increases to record levels.

Although year 2023 has been characterized by downward rebalancing trend of raw material costs, their values did not reach the pre-crisis ones, instead stabilizing at much higher levels.

Added to this, there is the need to modernize our production processes to meet the challenges both on the decarbonisation requirements (particularly in UE, according to the Green Deal policy which sets obligations and objects for the next decades) and also in the use of artificial intelligence.

In this context we have started a process aimed at the detailed assessment of the impact of our processes with respect to the carbon footprint and the definition of a decarbonisation plan in order to achieve the objectives of reducing our GHG emissions and so also the carbon footprint of our customers.

We have also started studying how AI can optimize our production processes and improve the quality of the products our organization supply.