Basic Net SpA

Earnings Release • Feb 10, 2022

PRESS RELEASE

BASICNET – 2021 preliminary results report significant growth. EBITDA and Net Financial Position improve also on 2019.

Turin, February 10, 2022. The Board of Directors of BasicNet S.p.A. have reviewed the 2021(*) preliminary figures. The definitive results will be approved on March 3 next.

The Group, in summary, for 2021 reports:

• aggregate sales of Group products by the Global licensee Network of Euro 949.4 million, up 16.6% on the previous year. They consist of:
  • commercial licensees of Euro 709.6 million (Euro 602.0 million in 2020, +17.9%)
  • productive licensees of Euro 239.8 million (Euro 212.1 million in 2020, +13.1%).

Commercial licensee sales continued to recover on the previous year, driven by the Americas (+60.2%). The Middle East and Africa were up 40.5%, while Europe (accounting for approx. 68% of aggregate sales) grew 17.6%. Asia and Oceania are still recovering from the replacement of a licensee;

• consolidated revenues of Euro 296.4 million (Euro 259.7 million in 2020, +14.1%), as follows:
  • royalties from commercial and productive licensees: Euro 54.8 million (Euro 46.0 million in 2020, +19.1%);
  • direct sales: Euro 241.6 million (Euro 213.8 million in 2020), up 13.0%;

Consolidated revenues grew strongly in Q4 - up over 14% on the record year of 2019;

• EBITDA: Euro 44.2 million (more than doubling on Euro 19.8 million in 2020, +4.0% on Euro 42.5 million in 2019);
• EBIT: Euro 31.6 million (more than quadrupling on Euro 7.6 million in 2020, +3.5% on Euro 30.6 million in 2019);
• net financial position: debt of Euro 61.7 million, significantly improving on Euro 82.2 million at December 31, 2020, and Euro 78.3 million at December 31, 2019.

"The Group business model's flexibility allowed us in 2020 to respond promptly to the pandemic" stated the Chief Executive Officer Federico Trono - "the 2021 results confirmed its effectiveness: despite the aftermath of the health crisis, the Group reported a growth in its key indicators, along with a confirmed strong capitalization. The improvement of profitability and net financial position - also compared to 2019 - allows us to pursue the strategic goals in order to support the medium-long term growth. I am pleased also to recall that in 2021 the Group was on the frontline in the fight against COVID, opening at the BasicVillage, BasicNet's Turin headquarters, the "Humanitas Gradenigo" vaccination centre".

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

The Chief Executive Officer Federico Trono will present the 2021 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 licensee aggregate sales:	sales by commercial licensees, recognised by the BasicNet Group to the "royalties and sourcing commissions" account of the income statement.
•	Productive licensee aggregate sales:	sales by productive licensees, recognised by the BasicNet Group to the "royalties and sourcing commissions" account of the income statement.
•	Consolidated revenues:	the sum of royalties, sourcing commissions and sales of the BasicNet Group companies.
•	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

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.

equivalents and other current financial assets.

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