Basic Net SpA

Investor Presentation • Jul 25, 2019

CONFERENCE CALL - 25th July 2019

IINFO

DIGITAL
SIGN

• Total aggregated sales € 485 mn, +21.6% (+17,5% at CER)
• Consolidated revenues € 138 mn, +48.6% (+47,9% at CER, +15.2% excl. Kappa Europe)
• o Direct sales € 111 mn, +65.4% (+15.2% excl. KE)
• o Royalties from ASL and ASSC € 27 mn, +4.5% (+15.2% excl. KE)
• EBITDA € 20.3 mn, +54.5% (+48,8% excl. KE and IFRS16)
• EBIT € 14.6 mn, +43.8%
• Net Result € 10.4 mn, +60.2%
• Net Financial Position € 86,9 mn, € 49,3 mn excl. €19,7 mn related to the acquisition of KE and € 18 mn related to IFRS 16 (€ 57,2 mn at 30 June 2018). In 1H2019 BasicNet paid € 6.5 mn in dividends and acquired € 1,3 mn treasury shares.

Acquisition of Sport Finance SAS controlling stake

In January, BasicItalia acquired 61% of the French company Sport Finance, renamed Kappa Europe, i.e. the holding company of a group of Kappa brand licensee companies for France, UK, Switzerland, Spain and Portugal.

The new "powered by BasicNet" distribution structure will enhance direct Group presence in Europe, in both sportswear and lifestyle segment, leveraging BsicNet operational and organizational platform to boost the Kappa brand performance, with expected synergies in procurement, logistics, communications and sponsorship.

Total Aggregated Sales

Aggregated sales of licensees (ASL) by geography

5

1H2019 Consolidated Income Statement

€/000

	30/06/2019		30/06/2018		Variances
Consolidated direct sales	110.962	100%	67.080	100%	43.882	65,4%
Cost of sales	(61.335)	-55,3%	(39.216)	-58,5%	(22.119)	-56,4%
GROSS MARGIN	49.627	44,7%	27.864	41,5%	21.763	78,1%
Royalties and sourcing commissions	26.819	24,2%	25.671	38,3%	1.149	4,5%
Other income	2.659	2,4%	1.103	1,6%	1.555	141,0%
Sponsorship and media costs	(18.685)	-16,8%	(12.179)	-18,2%	(6.506)	-53,4%
Personnel costs	(15.876)	-14,3%	(11.540)	-17,2%	(4.336)	-37,6%
Selling, general and administrative costs, royalties expenses and amortization	(29.969)	-27,0%	(20.779)	-31,0%	(9.190)	-44,2%
EBIT	14.576	13,1%	10.140	15,1%	4.436	43,7%
Net financial income (charges)	(795)	-0,7%	(1.000)	-1,5%	205	20,5%
EBT	13.781	12,4%	9.140	13,6%	4.641	50,8%
Income taxes	(3.373)	-3,0%	(2.643)	-3,9%	(730)	-27,6%
Net Result	10.408	9,4%	6.497	9,7%	3.911	60,2%
BasicNet Shareholders Minority Shareholders	11.205 (797)	10,1% -0,7%	6.497 -	9,7% 0,0%	4.708 (797)	72,5% 0,0%

As of today, the company owns:

• N. 7.213.622 equal to 11,8% of the share capital
• Average price € 2,65/share
• Total cash out: € 19 mn
• Total authorized share buy back 2019/2020: € 4 mn

CONFERENCE CALL - 25th July 2019