Basic Net SpA

Earnings Release • Feb 13, 2024

2023 PRELIMINARY RESULTS CONFERENCE CALL

TURIN, 13 FEBRUARY 2024

02 03

EXECUTIVE SUMMARY NETWORK ACTIVITY

FY 2023

GROUP INTERIM RESULTS FY 2023

EXECUTIVE SUMMARY

Growing direct revenues (€ 396,8 mln,+2,7%) matched by a strong cash generation from operations. Direct sales of goods (€ 332,8 mln) at +6,4% YoY in a scenario of uncertainty that saw a decrease in sales of commercial licensees. EBITDA at € 58,1 million (€ 60,9 on FY22).

TOTAL AGGREGATED SALES

01 EXECUTIVE SUMMARY

12m aggregated sales amounted to € 1,1 billion (- 10,4% YoY) as aggregated sales of sourcing centers (ASSC) were reduced by -13,5% compared to 2022 exceptional purchases following covid and logistics disruption.

GROUP CONSOLIDATED REVENUES

Group consolidated revenues amounted to € 396,8 mln (+2,7% YoY) thanks to the continuous improvement of sales of goods in directly-operated markets (+8,6% YoY) that more than offset the slowdown of royalties coming from third-party licensees.

EBITDA

EBITDA stood at € 58,1 mln (€ 60,9 mln in 2022) as the Group kept investing in communication and human resources to foster and sustain long term growth. The positive operating result was converted in a strong generation of cash (operating cash flow just shy of € 40 mln).

NFP WITH BANKS

Net Financial Position with banks at € 92,6 mln (compared to € 93,9 mln at YE 2022) as the Group has paid the first instalment of K-Way France earn-out, distributed roughly € 9,0 mln in dividends and purchased treasury shares for € 2,5 mln.

TOTAL AGGREGATED SALES (TAS) € 1.141,1 mln

-10,4% vs 2022 (€ 1.273,1 mln)

+2,7% vs 2022 (€ 386,1 mln) € 396,8 mln GROUP CONSOLIDATED REVENUES

EBITDA -4,6% vs 2022 (€ 60,9 mln) € 58,1 mln

NFP WITH BANKS - € 92,6 mln

+ € 1,3 mln vs 2022 (- € 93,9 mln)

NETWORK ACTIVITY FY 2023

ASL – GEOGRAPHIC AREA 02 NETWORK ACTIVITY

in € million	31.12.23	in %	31.12.22	in %	Var	Var %
Europe	591,1	72,1%	612,3	67,9%	(21,1)	-3,5%
Asia and Oceania	55,9	6,8%	71,8	8,0%	(15,8)	-22,0%
Americas	73,9	9,0%	114,3	12,7%	(40,4)	-35,4%
Middle East and Africa	99,1	12,1%	103,6	11,5%	(4,6)	-4,4%
Total ASL	820,0	100,0%	902,0	100,0%	(81,9)	-9,1%

NETWORK ACTIVITY 02 AT 31/12/2023

Q4 MARKETING

Kappa will sponsor the 24 Hours of Le Mans for the next three editions

Kappa is the new sponsor of the Major League Rugby

Launch of the new capsule collection Kappa Palace x Alpine F1

NETWORK ACTIVITY Q4 MARKETING 02 AT 31/12/2023

Launch of the new Balenciaga ski helmet, produced in co-lab with Briko Team Esplora discovering Nepal kitted and supported by Briko

Briko supporting paralympic athlete Giacomo Bertagnolli

NETWORK ACTIVITY Q4 MARKETING 02 AT 31/12/2023

The 14th edition of Artissima, sponsored by K-Way, kicks-off

Opening of the second Spanish K-Way Store, in Madrid

K-Way launches the new skiwear collection, supported by several activation projects through the most exclusive ski slopes in Europe

K-Way and Culti unveil "After Rain", their first fragance

Q4 MARKETING

Superga launches the new co-lab with Drea Chong in Singapore

Launch of the first co-lab with Australian fashion brand Camilla

Superga launches the new Lendl Match sneakers at the ATP Finals in Turin

Superga sponsors the 16th edition of Movement Festival

The second co-lab with Drake'sis unveiled through a road video in Maine

Olympic swimmer Greg Paltrinieri hosted at Sebago Rome

Opening of the new monobrand store in Torino

David Marx presents his book Launch of the first "Sebago Yearbook" "Ametora" at Sebago Milan

GROUP INTERIM RESULTS FY 2023

CONSOLIDATED REVENUES

20,5 (0,8) (11,3)

NET FINANCIAL POSITION

in € .000	31.12.23	in %	31.12.22	in %	Var	Var%
Sub-total net money holdings	(39.059)	28,1%	(26.439)	18,7%	(12.621)	47,7%
Short-term portion of m/l term loans	(14.330)		(15.423)		1.093	-7,1%
Short-term net financial position	(53.390)	38,4%	(41.862)	29,5%	(11.528)	27,5%
Long-term portion of m/l term loans	(39.136)		(51.756)		(12.620)
Financial leasing payables	(83)		(259)		176	-67,9%
Sub-total loans and leasing payables	(39.219)	28,2%	(52.014)	36,7%	12.795	-24,6%
Net financial position with banks	(92.609)	66,6%	(93.876)	66,3%	1.267	-1,3%
Right of use debts	(36.778)		(30.734)		(6.044)	19,7%
Payables for future acquisition of company shares	(9.738)		(17.081)		7.343	-43,0%
Net financial position	(139.125)	100,0%	(141.691)	100,0%	2.566	-1,8%

NET FINANCIAL POSITION WALK 03 GROUP INTERIM RESULTS

GLOSSARY AND ALTERNATIVE PERFORMANCE MEASURES

Commercial licensees or licensees	independent business owners, granted licenses to distribute Group brand products in their respective regions
Productive licensees or sourcing centers	third-party entities whose function is to manufacture goods branded with the Group brands for the exclusive sale to Commercial licensees or to Group companies
Total Aggregated Sales (TAS)	the sum of Aggregated Brand Sales (ASL) and Aggregated Sales of Sourcing Centers (ASSC)
Aggregated Brand Sales (ASL)	sales by commercial licensees – that generate royalties for BasicNet Group – and sales by the Group companies
Aggregated Sales of Sourcing Centers (ASSC)	sales by productive licensees – that generate sourcing commissions for BasicNet Group
Consolidated revenues	the sum of royalties, sourcing commissions, sales of products made by BasicNet Group companies and real estate revenues
EBITDA	"operating result" before "amortisation and depreciation"
Net Financial Position	total of current and medium/long-term financial payables, less cash and cash equivalents and other current financial assets
Net Financial Position with banks	Net Financial Position, excluding IFRS 16 and financial liabilities for the acquisition of businesses

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