18. Property, plant and equipment

Increase in Land and buildings at December 31, 2023 was mainly related to the grant of land by the city of Fishers (Indiana, U.S.), amounting to EUR 8,281 thousand, that was conditional upon the construction of a building on the site. The grant has been booked at Fair Value as per appraisal of the City. According to IAS 20, the grant was recognized upon the fulfillment of the related obligations. The grant of land was booked against deferred income (presented in other liabilities) and will be recognized in the income statement as other operating income over the life of the building. The amount reclassified to Land and buildings in the year mainly refers to the partial capitalization of the new buildings in Piombino Dese which hosts the new lines dedicated to EZ-fill® products and EMEA Tec Center, amounting to EUR 19,145 thousand.

At December 31, 2023 the overall increases in plant and machinery, considering both the yearly additions and the reclassification from assets under construction, amounted to EUR 87,216 thousand and mainly referred to the purchase of new production equipment necessary to guarantee a high product quality standard and a high production capacity, characteristics necessary to consolidate the Group's position in the biopharmaceutical market.

Assets under construction, included investments in production lines and machines for syringes, vials and cartridges production which have not yet been completed but are expected to enter into use in the coming years. This category also

included: (i) the investment for the new EZ-fill® plant in Latina, (ii) the investment for the new EZ-fill® hub in China, (iii) the investments for completing the new building in Piombino Dese, that will host corporate offices, production lines and the EMEA TEC Center and (iv) the investments for the construction of the new U.S. facility in Fishers, Indiana.

At December 31, 2023 committed orders related to the ongoing investments equaled approximately EUR 136.5 million (EUR 270 million at December 31, 2022), net of the expected contribution from the U.S. government’s Biomedical Advanced Research and Development Authority (BARDA). As part of the investment for the construction of the new U.S. facility in Fishers, Indiana., in February 2022, Stevanato Group entered into an agreement with BARDA, which is part of the U.S. Department of Health and Human Services, through its partnership with the U.S. Department of Defense. Under the agreement, BARDA will make a multi-year contribution for up to approximately USD 95 million (or approximately EUR 85 million) for manufacturing capacity for standard and EZ-Fill® vials in support of U.S. national defense readiness and preparedness programs for current and future public health emergencies.

At December 31, 2023, EUR 2,290 thousand borrowing costs were capitalized under IAS 23. The capitalization rate used to determine the amount of capitalized borrowing costs is 4.60%.

At December 31, 2023, approximately EUR 50.6 million of investments in property, plant and equipment were unpaid and recorded among trade payables (approximately EUR 62.7 million at December 31, 2022).

At the year end, no impairment indicators have been identified and therefore no impairment losses have been accounted for.