AZ spa Viale dell’elettronica 20 36016 Thiene (VI) - Italy +39 0445/575543 [email protected] Sustainability Report 2023 Report on our progress, actions, and transformations towards achieving the Sustainable Development Goals

Letter to stakeholders Materiality assessment and material topics Company Product Supply chain People Environment Community focus

LETTER TO STAKEHOLDER Dear Stakeholders, as CEO of AZ, I am pleased to present our first Sustainability Report. This document provides all our stakeholders—employees, shareholders, customers, and suppliers—with the opportunity to understand and evaluate our commitment and achievements in the areas of environment, governance, and social responsibility. Sustainability is a dynamic journey that requires awareness of our limits, strengths, and priorities. To create shared value along our supply chain, listening to and engaging with our stakeholders has been fundamental. AZ has always invested in...

In parallel, our analysis of the company climate offers us an in-depth overview of our employees' well-being and satisfaction. Through surveys and anonymous feedback, we identify areas for improvement and implement strategies to create a more harmonious and productive work environment. These projects not only bring tangible benefits in terms of our employees' quality of life but also help us keep pace with the needs and expectations of modern business structures. Furthermore, these efforts reflect our commitment to transparent and responsible management, which values the contribution of every...

The Role of Stakeholders and Their Engagement Stakeholders are individuals or groups, both internal and external, that have an interest in a company and with which the company interacts in carrying out its business. Engaging with stakeholders allows a company not only to understand their needs, expectations, and assessments but also to better define its business strategies and objectives, evaluating change, risks, and opportunities. AZ's relationship system with its stakeholders includes differentiated dialogue tools and channels for different stakeholder categories, consistent with the level...

"These topics are defined as 'material' as they reflect the organization's economic, social, and environmental impacts and can influence the decisions of both internal and external stakeholders. Regarding governance aspects, the most strategic themes are those related to maintaining adequate economic and financial performance, as well as innovation, research and development, and product quality, a strategic issue for remaining competitive in the market. Another strategic theme is talent development and training to stay updated on the necessary skills and attract new talent through collaboration...

AZ is located in the most productive and industrialized area of northern Italy, one of the largest in Europe. A land that can be defined as friendly thanks to the proximity of the mountains, the sea, and one of the most beautiful cities in the world, Venice. It is here among our mountains that, thanks to the availability of materials, the old tradition of the 'arrotino' was born, one of the principles of grinding and lapping. The company has sold over 3,000 crankshaft and cylinder grinding machines, making it the "crankshaft specialist". In 2006, production began on machines dedicated to the...

SMAU Award: Logistics and Supply Chain Business Students -CIMBA SCHOOL -visiting Expansion production area Schio Design festival POLITICIAN FRANCESCHINI VISITS AZ IINDUSTRIAL ENGINEERING DAYINNOVATION AND CAREERS UNIVERSITY OF TRENTO From Father to Son Award 1000 BEST PERFORMER ENTERPRISES AWARD 2023 | VICENZA POLITICIAN ACHILLE VARIATI VISITS AZ JAPANESE DELEGATION VISITS AZ

MISSION: FLEXIBILITY AND CUSTOMIZATION AZ's mission is to design and build customized grinding machines to meet the specific needs of each customer and solve complex part grinding challenges. AZ guarantees cutting-edge technology, thanks to an expert and agile team that offers an integrated system of advanced solutions. • CUSTOM DESIGNED FOR THE CUSTOMER AND PROVIDES QUICK RESPONSES • GUARANTEES DIRECT RESPONSIBILITY IN ALL PHASES OF THE PRODUCTION PROCESS • REDUCES DELIVERY TIMES • OFFERS FAST AND EFFICIENT AFTER-SALES SERVICES

Innovation culture has always been at the heart of AZ's entrepreneurial vision. Innovation culture means collaborating with universities, investing in research, sharing knowledge and experiences with customers and internal staff to continuously improve products, services, and support. AZ offers an integrated system of technologies and services that enables us to provide technologically advanced and reliable products. Focusing on added value for the customer, on the high reliability of the organization, on fast and efficient production. These are the foundations of AZ's daily work. We are increasingly...

WHAT WE DO CRANKSHAFT-CAMSHAFT GRINDING MACHINES CYLINDRICAL GRINDING MACHINES GRINDING MACHINES FOR AEROSPACE COMPONENTS MACHINE TOOLS FOR ENGINE REBUILDING AEROSPACE-AUTOMOTIVE-OIL&GAS-LOCOMOTIVE-MARINE-HIGH PRECISION MECHANICS

Ownership and Legal Form AZ is a family-owned joint-stock company with fully subscribed and paid-up share capital of €1,200,550. Within AZ, there is an informal group dedicated to sustainability issues and the pursuit of the objectives defined in the Sustainability Report. In its first sustainability report in 2023, the company defined a sustainability strategy and a path for improving social, environmental, and governance impacts. Organization chart President CDA Anna Pizzolato Administration and Finance Renzo Zanocco Sarah Pizzolato Operation and Logistic Valeria Pizzolato Davide Bogo

Certifications "The primary national organization representing industrial enterprises. The core mission of the regional innovation network AIR is the transfer of innovative technologies, both as spin-offs and spin-ins, between the aerospace sector and the territory's industrial supply chain, in cross-cutting applications with a high economic and social impact, creating a strong synergy between the two systems with mutual and significant benefits." Quality certificate ISO 9001:2015 This certification drives AZ to seek continuous improvement in internal processes to better meet customer needs....