Basic Net SpA

Earnings Release • Feb 10, 2023

BASICNET – PRELIMINARY RESULTS – GROWTH IN 2022: AGGREGATE SALES OF GROUP BRANDS +34.1% TO EURO 1.27 BILLION. CONSOLIDATED REVENUES +30.0%, EBITDA +37.7%, EBIT +45.8%.

Turin, February 10, 2023. The Board of Directors of BasicNet S.p.A. have reviewed the 2022(*) preliminary figures. The definitive results will be approved on March 9 next.

The Group, in summary, reports for 2022:

• aggregate sales of Group brands products worldwide of approx. Euro 1.27 billion, up 34.1% on the previous year - as follows:
  • commercial licensees and direct aggregate sales: Euro 902.0 million (Euro 709.6 million in 2021, +27.1%)
  • productive licensees aggregate sales of Euro 371.1 million (Euro 239.8 million in 2021, +54.8%).

Excellent performance in aggregate commercial sales and in particular: Europe, accounting for approx. 68% of aggregate sales, grew 26.9% on the previous year. Asia and Oceania, accounting for 8% of aggregate sales, grew 40.4%, with the Middle East and Africa up 29.9% and the Americas by 18.6%;

• consolidated revenues of Euro 386.1 million (Euro 297.0 million in 2021, +30.0%), as follows:
  • royalties from commercial and productive licensees: Euro 72.3 million (Euro 54.8 million in 2021, +32%);
  • direct sales: Euro 312.7 million (Euro 241.6 million in 2021), up 29.4%;
• EBITDA: Euro 60.9 million, up 37.7% on Euro 44.2 million in the previous year;
• EBIT: Euro 46.1 million, up 45.8% on Euro 31.6 million in the previous year;
• net financial position: Euro -141.5 million (Euro -61.7 million at December 31, 2021). In 2022, besides having supported the significant commercial growth, dividends of Euro 6.1 million were distributed and treasury shares were acquired for Euro 6.5 million. The Group also acquired for Euro 36.9 million full ownership of the company K-Way France and invested Euro 9.9 million in the Real Estate sector.

"The 2022 results are very strong. The aggregate sales of our brands exceeded Euro 1.2 billion, with EBITDA surpassing Euro 60 million" - stated Chief Executive Officer Federico Trono – "it is significant that these results have been achieved by a new and very young team of executives and directors, who entered office at the beginning of the pandemic and have demonstrated themselves to be very much in touch with our business model and the digital management of its marketplace."

(*) The figures and information reported herein were not audited.

The Chief Executive Officer Federico Trono will present the 2022 preliminary results to the market in a video conference to be held today at 6PM CET.

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The presentation may be downloaded from the website www.BasicNet.com, from the section: "financial data/other information and presentations" shortly before the video conference, at the following link:

www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g&language=IT

In relation to the "alternative performance measures", as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the measures used in this press release:

•	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 firms to the Group. Their function is to manufacture and market merchandise and are located in various countries worldwide, depending on what type of goods they produce.
•	Commercial licensees and direct aggregate sales	sales by commercial licensees, recognised by the BasicNet Group to the royalties account and the sales by the Group companies.
•	Productive licensees aggregate sales:	sales by productive licensees, recognised by the BasicNet Group to the sourcing commissions account.
•	Consolidated Revenues	the sum of royalties, sourcing commissions and sales of the BasicNet Group companies and real estate revenues.
•	EBITDA:	"operating result" before "amortisation and depreciation".
•	EBIT:	"operating result".
•	Net financial position:	total of current and medium/long-term financial payables, less cash and cash equivalents and other current financial assets.

***

The Executive Officer for Financial Reporting, Ms. Paola Bruschi, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records and accounting entries.