Disclaimer

This Half-year financial report at June 30, 2023 has been translated into English solely for the convenience of the International reader. In the event of conflict or inconsistency between the terms used in the Italian Version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the official document.

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HEADQUARTERS	6
SHOWROOMS	6
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CORPORATE BOARDS OF THE PARENT COMPANY

Chairman

Massimo Ferretti – Member of Executive Committee

Deputy Chairman

Alberta Ferretti

Chief Executive Officer

Simone Badioli – Member of Executive Committee

Board of Directors

Directors

Giancarlo Galeone – Member of Executive Committee Roberto Lugano Bettina Campedelli Francesca Pace Marco Francesco Mazzù Daniela Saitta Francesco Ferretti

President

Stefano Morri

Statutory Auditors Carla Trotti Fernando Ciotti

Alternate Auditors

Nevio Dalla Valle Daniela Elvira Bruno

Compensation Committee President Daniela Saitta

Members Roberto Lugano Marco Francesco Mazzù

Risk and Sustainabylity Control Committee

President Bettina Campedelli

Members Daniela Saitta Francesca Pace

HEADQUARTERS

AEFFE

Via Delle Querce, 51 47842 - San Giovanni in Marignano (RN) Italy

MOSCHINO

Via San Gregorio, 28 20124 — Milano (MI) Italy

POLLINI

Via Erbosa I° tratto, 92 47030 - Gatteo (FC) Italy

SHOWROOMS

MILAN

FERRETTI – PHILOSOPHY – POLLINI Via Donizetti, 48 20122 — Milano Italy

MILAN

MOSCHINO Via San Gregorio, 28 20124 — Milano Italy

NEW YORK

GROUP 30 West 56th Street 10019 — New York USA

LONDRA

MOSCHINO – FERRETTI – PHILOSOPHY 28-29 Conduit Street W1S 2YB — London UK

PARIS

GROUP 43, Rue du Faubourg Saint Honorè 75008 - Paris France

MOSCHINO

Milan Rome Venice Florence Paris London New York Seoul Pusan Daegu Shanghai Shenzen Guangzhou Beijing

ALBERTA FERRETTI

Milan Rome Paris

POLLINI

Milan Venice Bolzano

		1st Half	1st Half
		2023	2022
Total revenues	(Values in millions of EUR)	168.6	180.8
Gross operating margin (EBITDA) *	(Values in millions of EUR)	8 5	20.9
Net operating profit (EBIT)	(Values in millions of EUR)	( 7.9)	7.0
Profit before taxes	(Values in millions of EUR)	(12.8)	5.7
Net profit for the Group	(Values in millions of EUR)	(11.7)	2.9
Basic earnings per share	(Values in units of EUR)	0.118)	0.029
Cash Flow (net profit + depreciation)	(Values in millions of EUR)	4 1	15.8
Cash Flow/Total revenues	(Values in percentage)	2.5	8.7

		At June 30,	At December 31, At June 30,		At December 31.
		2023	2027	2022	2021

Net capital invested	(Values in millions of EUR)	337.5	341.6	304.9	288.9
Net financial indebtedness	Values in millions of EUR)	238.5	231.8	182.9	168.7
Group net equity	(Values in millions of EUR)	122.0	120.2	161.7	148.2
Group net equity per share	Values in units of EUR)	0 ਰੇ	1.0	1.1	1.1
Current assets/ current liabilities	(Ratio)	2.1	2.0	1.8	1.8
Curr. assets less invent./ curr. liabilities (ACID test)	(Ratio)	0.9	1.0	0.8	0.9
Net financial indebtedness/ Net equity	(Ratio)	24	2.1	1.5	1.4

AEFFE GROUP

INTERIM MANAGEMENT REPORT

1. SUMMARY OF THE GROUP'S KEY ACTIVITIES

Aeffe Group operates worldwide in the fashion and luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods. The Group develops, produces and distributes, with a constant focus on the qualities of uniqueness and exclusivity, its own collections both under its own-label brands, including "Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino" and under licensed brands. The Group has also licensed to key partners the production and distribution of other accessories and products with which it supplements its product range (perfumes, children's lines, sunglasses and other).

The Group's business is divided, based on the various product lines and brands it sells, into two segments: (i) prêt-aporter (which includes prêt-a-porter lines, lingerie and swimwear); and (ii) footwear and leather goods.

Prêt-a-porter Division

The Prêt-a-porter Division, which is companies Aeffe and Moschino, is mainly involved in the design, production and distribution of luxury prêt-a-porter garments and lingerie, beachwear and loungewear.

In terms of the prêt-a-porter collections, the activity is carried out by Aeffe, both for the Group's proprietary brands ("Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Boutique Moschino" and "Love Moschino") and brands licensed from other companies. Aeffe also handles the distribution of all Division products both through the retail channel (via subsidiaries) and through the wholesale channel.

Furthermore Aeffe manufactures and distributes lingerie and swimwear collections, and specifically men's lingerie, underwear, beachwear and loungewear. Collections are produced and distributed under the Group's proprietary brands, as "Moschino", and under third-party licensed brands.

The Prêt-a-porter Division also manages licensing agreements granted to other companies to manufacture Aeffe and Moschino branded product lines such as the Moschino brand licensing agreement relating to the Love line, "Moschino" branded perfumes and sunglasses.

Aeffe

Aeffe is the brainchild of designer Alberta Ferretti, who set up her own business in 1972. The Parent Company has developed in parallel with that of its founder, whose personal involvement in fashion has been a key factor in Aeffe's development.

The growth of the Parent Company as an industrial and creative entity has been distinguished from the start by a multibrand approach, with Aeffe producing and distributing the prêt-a-porter collections of leading fashion houses utilising the know-how acquired in the production of luxury prêt-a-porter lines.

This provides the context for the partnership between Aeffe and designer Franco Moschino, whose brand "Moschino Couture!" it has produced and distributed under an exclusive licence since 1983.

Between 1995 and 2013, Aeffe worked with designer Jean Paul Gaultier producing and distributing the women prêt-àporter collections branded "Jean Paul Gaultier".

In 2001, Aeffe gained control of Pollini, an established manufacturer of footwear and leather goods. This allowed Aeffe to supplement the collections produced in-house with an accessories line.

In 2002, Aeffe took over Velmar, a firm that had collaborated with Aeffe for some time on the production and distribution of lingerie, beachwear and loungewear lines.

In 2007 Aeffe is quoted on the Euronext Star Segment of Euronext Milan Market of Borsa Italiana.

In 2022 the 100% subsidiary Velmar S.p.A. is merged by incorporation into Aeffe S.p.A..

Moschino

Moschino was founded in 1983 and grew during the 1990s to become an internationally renowned brand. Following the disappearance in 1994 of its founder, Franco Moschino, his family, staff and friends have kept the designer's legacy alive, respecting his creative identity and philosophy. Rossella Jardini, who has worked for Franco Moschino since 1981, succeeded him as artistic director and becoming in charge of brand image and styling. The company provides design, marketing and agency services from the Milan showroom for Moschino collections in Italy and overseas.

The company also directly manages five single-brand Moschino stores, two in Milan, one in Capri and online.

In 2013 Jeremy Scott was appointed as creative director of the "Moschino" brand.

In 2021 Aeffe SpA. took over from Sinv Holding S.p.A., Sinv Real Estate S.p.A. and Sinv Lab S.r.l., the minority stake of 30% of Moschino S.p.A., thus coming to own the entire capital.

Aeffe USA

Aeffe USA is 100% owned by Aeffe S.p.A. and was incorporated in May 1987 under the laws of the State of New York.

The company operates in the wholesale segment of the North American market (United States and Canada) distributing items of clothing and accessories produced by the Parent Company, Pollini S.p.A. and other third-party licensed manufacturers, with different collections, of the brands produced by the Parent Company also acts as agent for some of these lines. The company operates out of its showroom located in midtown Manhattan.

Aeffe Retail

Aeffe Retail operates in the retail segment of the Italian market and directly manages 14 stores, both mono-brand and multi-brand located in major Italian cities such as Milan, Rome, Venice, Florence and Capri, manages also an on-line mono-brand store.

Aeffe France

Aeffe France is 100% owned by Aeffe S.p.A. and manages the store in Paris, selling apparel and accessories under the brand "Alberta Ferretti". The company also acts as an agent for the brands "Alberta Ferretti" and "Philosophy di Lorenzo Serafini".

Aeffe Germany

Aeffe Germany is 100% owned by Aeffe S.p.A. and manages the store in Germany, which sells clothing and accessories under the Group labels.

Aeffe Spagna

Aeffe Spagna is 100% owned by Aeffe S.p.A. and manages the store in Spain, which sells clothing and accessories under the Group labels.

Aeffe Netherland

Aeffe Netherland is 100% owned by Aeffe S.p.A. and manages the store in Holland, which sells clothing and accessories under the Group labels.

Moschino Korea

Moschino Korea is 100% owned by Moschino S.p.A. and is based in Seoul. The company operates in the retail segment through flagship stores under direct management which sell Moschino-branded collections.

Fashoff UK

Fashoff UK operates by the showroom in London, acting as agent for the collections Moschino, Alberta Ferretti and Philosophy di Lorenzo Serafini.

The company also directly manages a single-brand Moschino store in London.

Moschino France

Moschino France is based in the Paris showroom and acts as agent for Moschino collections.

The company also manages one single-brand Moschino stores in Paris.

Moschino USA

Moschino USA, company founded in 2014 with base in New York and 100% owned by Moschino S.p.A., directly manage a single-brand Moschino store in New York.

Moschino Asia Pacific

Moschino Asia Pacific, company founded in 2021 with base in Hong Kong and 100% owned by Moschino S.p.A., carries out commercial services for the Asian markets.

Moschino Shanghai

Moschino Shanghai, based in Shanghai, is a company 100% owned by Moschino Asia Pacific Ltd., and directly manages numerous stores in China.

Moschino Kids

Moschino Kids, located in Padernello di Paese (TV), is a 70% subsidiary of Moschino Spa, operates in the children's clothing sector, and produces and distributes, as a licensee, Moschino brand products.

Footwear and leather goods Division

The operating activity is mainly carried out by Pollini, which directly handles the design, production of own-label products, as well as the production of brands licensed by Group companies. The footwear and leather goods division also manages licensing agreements granted to manufacture "Pollin" products such as umbrellas, foulards and ties.

Pollini

Pollini was established in 1953 in the shoemaking district of San Mauro Pascoli, following in the Italian tradition of handmade leather goods and shoes. Italy is a leading producer of footwear: due to expertise required to make these products, nearly all production sites are located in areas with a long-standing tradition, such as San Mauro Pascoli, Vigevano and Strà (PD). The company's philosophy is focused on promoting Pollini in other countries as an amalgam of traditional quality and Italian style, offering a range of products that include shoes, bags and matching accessories.

Between 1957 and 1961, Pollini produced the footwear collections of the designer Bruno Magli.

In the 1960s and early 1970s, Pollini began making shoes under its own label, presenting "themed" collections (such as the "Daytona" sports footwear collection, inspired by the world of motorbike racing).

In the 1970s, Pollini rose to international fame: at that point, its collections were shown in Düsseldorf, Paris and New York, as well as in Milan and Bologna. Around the same time, the first stores opened in Milan, Verona, Varese and Venice.

In 1989, Pollini moved into its new office in Gatteo, in the Italian province of Forlì-Cesena. The new site measures 50,000 sq. m., just over a third of it indoor, with a production workshop and seven-storey building housing the showroom and offices. The new site brought the footwear and leather goods divisions and sales and administration offices under one roof.

In 2001, Aeffe and Pollini reached an agreement whereby Aeffe would acquire a controlling stake in Pollini. The acquisition was a natural progression of the increasingly concentrated partnership between the two companies, enabling the growth of the footwear and leather goods lines designed by Alberta Ferretti.

Always in 2008, Pollini has entered into new license agreements with Drops S.r.l., for the manufacturing of umbrellas, as well as Larioseta S.p.A., for the manufacturing and distribution of neckwear, including women's and men's scarves and ties. In 2011 Aeffe S.p.A. has acquired the remaining of Pollini S.p.A., becoming the sole shareholder.

Pollini Retail

Pollini Retail is active in the retail segment of the Italian market and directly manages 20 stores and outlets, in major Italian cities such as Milan and Venice.

Pollini Suisse

Pollini Suisse directly manages the mono-brand Pollini store in Mendrisio, Switzerland.

2.

(Values in units of EUR)	15t Half	% on	15t Half	% on	Change	%
	2023	revenues	2022	revenues
REVENUES FROM SALES AND SERVICES	162,874,318	100.0%	176,506,070	100.0%	( 13,631,752)	(7.7%)
Other revenues and income	5,694,778	3.5%	4,249,458	2.4%	1,445,320	34.0%
TOTAL REVENUES	168,569,096	103.5%	180,755,528	102.4%	( 12,186,432)	(6.7%)
Changes in inventory	10,069,166	6.2%	24,302,020	13.8%	14,232,854)	(58.6%)
Costs of raw materials, cons. and goods for resale	70,732,128)	(43.4%)	89,843,096)	(50.9%)	19,110,968	(21.3%)
Costs of services	55,412,794)	(34.0%)	53,207,959)	(30.1%)	2,204,835)	4.1%
Costs for use of third parties assets	3,391,993)	(2.1%)	( 4,014,367)	(2.3%)	622,374	(15.5%)
Labour costs	36,867,999)	(22.6%)	34,399,226)	(19.5%)	2,468,773)	7.2%
Other operating expenses	3,734,805)	(2.3%)	2,711,399)	(1.5%)	(1,023,406)	37.7%
Total Operating Costs	160,070,553)	(98.3%)	159,874,027)	(90.6%)	196,526	0.1%
GROSS OPERATING MARGIN (EBITDA)	8,498,543	5.2%	20,881,501	11.8%	( 12,382,958)	(59.3%)
Amortisation of intangible fixed assets	2,100,754)	(1.3%)	2,011,980)	(1.1%)	(88,774)	4.4%
Depreciation of tangible fixed assets	3,236,530)	(2.0%)	2,280,454)	(1.3%)	956,076)	41.9%
Depreciation of right-of-use assets	10,396,016)	(6.4%)	8,627,092)	(4.9%)	1,768,924)	20.5%
Revaluations / (write-downs) and provisions	635,574)	(0.4%)	999,902)	(0.6%)	364,328	(36.4%)
Total Amortisation, write-downs and provisions	16,368,874)	(10.1%)	(13,919,428)	(7.9%)	2,449,446)	17.6%
NET OPERATING PROFIT / LOSS (EBIT)	( 7,870,331)	(4.8%)	6,962,073	3.9%	( 14,832,404)	(213.0%)
Financial income	290,786	0.2%	1,121,312	0.6%	830,526)	(74.1%)
Financial expenses	4,001,253)	(2.5%)	(1,506,052)	(0.9%)	2,495,201)	165.7%
Financial expenses on right-of-use asset	1,195,639)	(0.7%)	915,597)	(0.5%)	280,042)	30.6%
Total Financial Income/(expenses)	4,906,106)	(3.0%)	1,300,337)	(0.7%)	3,605,769	277.3%
PROFIT / LOSS BEFORE TAXES	( 12,776,437)	(7.8%)	5,661,736	3.2%	( 18,438,173)	(325.7%)
Total Income Taxes	1,174,511	0.7%	2,795,167)	(1.6%)	3,969,678	(142.0%)
NET PROFIT / LOSS	( 11,601,926)	(7.1%)	2,866,569	1.6%	( 14,468,495)	(504.7%)
(Profit) / loss attributable to minority shareholders	(50,052)	(0.0%)		0.0%	( 50,052)	#DIV/0!
NET PROFIT / LOSS FOR THE GROUP	( 11,651,978)	(7.2%)	2,866,569	1.6%	( 14,518,547)	(506.5%)

EMARKET SDIR certified

SALES

In the first semester of 2023, Aeffe consolidated revenues amount to EUR 162,874 thousand compared to EUR 176,506 thousand in the first semester of 2022 (-7.7% at current exchange rates, -7.4% at constant exchange rates). Increasing revenues in Asia where the Moschino brand has introduced a direct distribution system.

Sales by brand

(Values in thousands of EUR)	15 Half		15 Half			Change
	2023	%	2022	%	バ	%
Alberta Ferretti	11,766	7.2%	10,752	6.1%	1,014	9.4%
Philosophy	8,772	5.4%	7,231	4.1%	1,541	21.3%
Moschino	123,121	75.6%	139,451	79.0%	16,330)	(11.7%)
Pollini	17,177	10.5%	16,544	9.4%	633	3.8%
Other	2,038	1.3%	2,528	1.4%	490)	(19.4%)
Total	162,874	100.0%	176,506	100.0%	( 13,632)	(7.7%)

In 1H 2023, Alberta Ferretti brand increases by 9.4%, generating 7.2% of consolidated sales, while Philosophy brand increases by 21.3%, generating 5.4% of consolidated sales.

In the same period, Moschino brand sales decrease by 11.7%, contributing to 75.6% of consolidated sales.

Pollini brand records an increase of 3.8%, generating the 10.5% of consolidated sales.

Other brands sales decrease by 19.4%, equal to 1.3% of consolidated sales.

Sales by geographical area

(Values in thousands of EUR)	15 Half		15 Half			Change
	2023	%	2022	%	17	%
lta v	68,177	41.9%	71,301	40.4%	(3,124)	(4.4%)
Europe (Italy excluded)	50,217	30.8%	59,316	33.6%	9,099)	(15.3%)
Asia and Rest of the World	34,359	21.1%	31,546	17.9%	2,813	8.9%
America	10,121	6.2%	14,343	8.1%	4,222)	(29.4%)
Total	162,874	100.0%	176,506	100.0%	( 13,632)	(7.7%)

Sales in ITALY, with an incidence of 41.9% on turnover, reported a decrease by 4.4% compared to 2022 at EUR 68,177 thousand: excellent results of the retail channel with an increase by 8% compared to the first semester of 2022, while the wholesale channel recorded a contraction of 6%.

Sales in EUROPE, with an incidence on turnover of 30.8%, reported a decrease by 15.3% at EUR 50,217 thousand. The major decrease was recorded on the United Kingdom market, both at a wholesale and retail level.

In ASIA and in the REST OF THE WORLD, the Group achieved revenues of EUR 34,359 thousand, with an incidence on turnover of 21.1%, in progression by 8.9% compared to 2022. The change of distribution in Greater China for the Moschino brand is gradually stabilizing with growing performance.

At current exchange rates, sales in AMERICA, with an incidence on turnover of 6.2%, recorded a decrease by 29.4%, due to the general slowdown in the consumption of luxury goods.

(Values in thousands of EUR)	1° Half		12 Half			Change
	2023	%	2022	%	//	%
Wholesale	110,578	67.9%	129,677	73.5%	19,099)	(14.7%)
Retail	47,002	28.9%	39,494	22.4%	7,508	19.0%
Royalties	5,294	3.2%	7,335	4.1%	( 2,041)	(27.8%)
Total	162,874	100.0%	176,506	100.0%	( 13,632)	(7.7%)

Sales by distribution channel

In the first semester of 2023 the Group recorded a consistent progression in the retail channel, offset by a decrease in the wholesale channel and royalties.

The revenues of the WHOLESALE CHANNEL, which represents 67.9% of turnover (EUR 110,578 thousand), recorded a decrease by 14.7% at current exchange rates, mainly attributable to the American market.

The revenues of the RETAIL CHANNEL, which represents 28.9% of Group sales (EUR 47,002 thousand), showed an increase by 19.0% at current exchange rates compared to the corresponding period of the previous year. Excellent results in Italy (+8%) and in Asia (+117%) thanks to the change in the distribution model in China of the Moschino brand.

The revenues for ROYALTIES, which represent 3.2% of consolidated turnover (EUR 5,294 thousand), decreased by 27.8% compared to the same period of 2022 following the termination of some licenses for the Moschino brand.

LABOUR COSTS

Labour costs increase from EUR 34,399 thousand in 1H 2022 to EUR 36,868 thousand in 1H 2023 with an incidence on revenues which increase from 19.5% in the first semester 2022 to 22.6% in the first semester 2023.

The workforce increases from an average of 1,325 units in the 1H 2022 to 1,426 units in the 1H 2023.

Average number of employees by category	1° Half	1 * Half		Change
	2023	2022	1	%
Workers	231	232	1)	(0.4%)
Office staff-supervisors	1,168	1,063	105	9.9%
Executive and senior managers	27	30	3)	(10.0%)
Total	1,426	1,325	101	7.6%

GROSS OPERATING MARGIN (EBITDA)

In the first semester of 2023, consolidated ADJUSTED EBITDA, net of the extraordinary effects associated with the Group's organizational restructuring approved on March 29, 2023, was positive for EUR 10,410 thousand (with a margin of 6.4% on turnover), compared to the EBITDA of the first semester of 20,882 thousand (with an incidence of 11.8% on turnover).

Margins in the semester decreased as a result of the new strategic course of the Moschino brand with the associated costs connected both to the change of distribution model in China (from 100% wholesale to retail) and the repositioning plan for the various Moschino collections, also impacting turnover and royalties.

NET OPERATING PROFIT / LOSS (EBIT)

Consolidated ADJUSTED EBIT is negative for EUR 5,959 thousand compared to positive EUR 6,962 thousand in 1H 2022, showing a decrease of EUR 12,921 thousand.

PROFIT / LOSS BEFORE TAXES

The result before taxes changes from a profit of EUR 5,662 thousand in 1H 2022 to a loss of EUR 12,776 thousand in the 1H 2023, with a decrease in absolute value of EUR 18,438 thousand.

3.

(Values in units of EUR)	At June 30,	At December 31,	At June 30,
	2023	2022	2022
Trade receivables	55,543,273	62,850,576	58,208,354
Stock and inventories	122,150,854	116,709,745	116,319,939
Trade payables	83,248,657)	88,596,138)	92,598,951)
Operating net working capital	94,445,470	90,964,183	81,929,342
Other short term receivables	30,791,345	33,118,597	34,339,305
Tax receivables	14,939,140	12,987,118	10,919,992
Derivative assets	56,651		116,102
Other short term liabilities	20,143,799)	19,497,967)	28,418,025
Tax payables	( 4,080,493)	4,385,845)	3,997,211)
Derivative liabilities		173,473
Net working capital	116,008,314	113,012,613	94,889,505
Tangible fixed assets	60,300,128	61,250,620	60,024,064
Intangible fixed assets	64,447,481	66,021,140	67,604,661
Right-of-use assets	104,738,196	110,566,821	86,161,530
Equity investments	41,196	39,197	30,069
Other fixed assets	833	199,911	2,413,290
Fixed assets	229,527,834	238,077,689	216,233,614
Post employment benefits	3,435,116)	3,551,239)	4,152,196)
Provisions	2,588,242)	2,371,370)	2,054,719)
Long term not financial liabilities	( 1,400,373)	( 1,634,539)	( 470,373)
Deferred tax assets	14,527,763	13,894,621	14,466,029
Deferred tax liabilities	( 15,122,855)	15,798,928	14,017,950)
Net capital invested	337,517,325	341,628,847	304,893,910
Share capital	24,606,247	24,606,247	24,696,521
Other reserves	89,029,880	93,516,643	93,666,281
Profits/(Losses) carried-forward	(2,973,651)	735,589	725,475
Profits/(Loss) for the period	11,651,978)	9,043,968	2,866,569
Group interest in shareholders' equity	99,010,498	109,814,511	121,954,846
Minority interest in shareholders' equity	41,000	9,052
Total shareholders' equity	99,051,498	109,805,459	121,954,846
Short term financial receivables			3,177,047)
Cash	(22,391,656)	21,657,539)	22,970,296)
Long term financial liabilities	59,306,929	70,444,091	80,689,230
Short term financial liabilities	100,711,253	78,131,171	51,058,966
Financial debt without IFRS 16	137,626,526	126,917,723	105,600,853
Short term lease liabilities	15,732,985	16,072,913	14,406,387
Long term lease liabilities	85,106,316	88,832,752	62,931,824
Financial debt	238,465,827	231,823,388	182,939,064
Shareholders' equity and financial debt	337,517,325	341,628,847	304,893,910

NET INVESTED CAPITAL

Compared to December 31, 2022, net invested capital decreased by 1.2%.

NET WORKING CAPITAL

Net working capital amounts to EUR 116,008 thousand (34.3% of LTM sales) compared with EUR 113,013 thousand of December 31, 2022 (32.1% of sales).

The changes in the main items included in the net working capital are described below:

to EUR 81,929 thousand at June 30, 2022 (23.7% of LTM sales).
the sum of other short term receivables and payables decrease of EUR 2,973 thousand mainly due to decrease of . credits for prepaid costs;
the net effect of tax receivables increases net working capital of EUR 2,257 thousand, mainly determined . by the increase of VAT receivable.

FIXED ASSETS

The variation in fixed assets of EUR 8,550 thousand to June 30, 2023 from December 31, 2022, is due to the amortisation of the period and to the capex made during the first half 2023.

NET FINANCIAL POSITION

The financial position of the Group at June 30, 2023 shows a DEBT of EUR 137,627 thousand net of the IFRS 16 effect (EUR 142,447 thousand as at March 31, 2023).

Regarding financial debt, it should be noted that in the last two years the Aeffe Group has made two strategic investments of an extraordinary nature for a total consideration of EUR 90 million relating to the minority shareholding of 30% of Moschino S.p.A. and the change of distribution in China on the Moschino brand.

SHAREHOLDERS' EQUITY

The shareholders' equity decreases for EUR 10,754 thousand from EUR 109,805 thousand as of December 31, 2022 to EUR 99,051 thousand as of June 30, 2023.

The number of shares is 107,362,504.

4. RESEARCH & DEVELOPMENT ACTIVITIES

Considering the particular nature of the Group's products, research & development activities continual technical/stylistic renewal of models and the constant improvement of the materials employed in production. Such costs were charged in full to the Income Statement.

5. TRANSACTIONS BETWEEN GROUP COMPANIES AND WITH RELATED PARTIES

During the period, there were no transactions with related parties, including intragroup transactions, which qualified as unusual or atypical. Any related party transactions formed part of the normal business activities of companies in the Group. Such transactions are concluded at standard market terms for the nature of goods and/or services offered.

Information on transactions with related parties, including specific disclosures required by the Consob Communication of July 28, 2006, is provided in Note "Related party transactions".

6. SIGNIFICANT EVENTS OF THE PERIOD

On 29th March 2023, the Board of Directors of Aeffe S.p.A. has approved the projects for the absorption by Aeffe of Moschino S.p.A. ("Moschino") and Aeffe Retail"), both wholly-owned subsidiaries. Both operations are part of a corporate rationalization and reorganization process, commenced in 2022 with the absorption of Velmar S.p.A.,

intended to enhance the operational efficiency and coordination of Group activities and their coordination, through the reduction the number of decision-making levels and rationalizing the release of synergies within the Group and the consequent saving of the corporate, accounting, tax and administrative costs of the above mentioned controlled companies.

7.

No significant events occurred after the balance sheet date.

8. YEAR

The result for the first half of 2023 is clearly influenced by the ongoing Group's reorganization and strategic repositioning which will lead us in the short term to be much more competitive on the global market. Although we report a decrease in revenues compared to the same period last year, we are satisfied with the retail channel, a direct consequence of the transition to a direct distribution model for the Moschino brand on the Chinese market. In addition to the good performance of the Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini brands, we are preparing a celebratory fashion show for the 40th anniversary of the next Milan fashion week in September, which will mark a further step in the brand's revamping project, boasting a significant development potential. We look forward to the second half of the year with constant attention towards the markets and our customers, but confident of returning to satisfactory growth very soon.

Half-year condensed financial statements at June 30, 2023

Financial statement

CONSOLIDATED BALANCE SHEET (*)

(Values in units of EUR)	Notes	At June 30,	At December 31,	Change
		2023	2022
Trademarks		62,761,044	64,507,805	1,746,761)
Other intangible fixed assets		1,686,437	1,513,335	173,102
Intangible fixed assets	(1)	64,447,481	66,021,140	(1,573,659)
Lands		17,123,494	17,123,494
Buildings		24,953,981	25,339,662	385,681)
Leasehold improvements		11,138,665	11,208,330	(69,665)
Plant and machinary		3,298,879	3,564,074	265,195)
Equipment		276,082	318,192	(42,110)
Other tangible fixed assets		3,509,027	3,696,868	187,841)
Tangible fixed assets	(2)	60,300,128	61,250,620	950,492)
Right-of-use assets	(3)	104,738,196	110,566,821	5,828,625
Equity investments	(4	41,196	39,197	1,999
Other fixed assets	(5)	833	199,911	199,078)
Deferred tax assets	(6)	14,527,763	13,894,621	633,142
NON-CURRENT ASSETS		244,055,597	251,972,310	( 7,916,713)
Stocks and inventories	(7)	122,150,854	116,709,745	5,441,109
Trade receivables	(8)	55,543,273	62,850,576	7,307,303)
Tax receivables	(9)	14,939,140	12,987,118	1,952,022
Derivate assets	(10)	56,651		56,651
Cash	(11)	22,391,656	21,657,539	734,117
Financial receivables
Other receivables	(12)	30,791,345	33,118,597	2,327,252)
CURRENT ASSETS		245,872,919	247,323,575	( 1,450,656)
TOTAL ASSETS		489,928,516	499,295,885	( 9,367,369)
Share capital		24,606,247	24,606,247
Other reserves		89,029,880	93,516,643	4,486,763)
Profits / (losses) carried-forward		(2,973,651)	735,589	(3,709,240)
Net profit / (loss) for the Group		11,651,978)	9,043,968	2,608,010)
Group interest in shareholders' equity		99,010,498	109,814,511	10,804,013)
Minority interests in share capital and reserves		( 9,052)	3,000	12,052)
Net profit / (loss) for the minority interests		50,052	12,052)	62,104
Minority interests in shareholders' equity		41,000	(9,052)	50,052
SHAREHOLDERS' EQUITY	(13)	99,051,498	109,805,459	( 10,753,961)
Provisions	(14)	2,588,242	2,371,370	216,872
Deferred tax liabilities	(6)	15,122,855	15,798,928	6/6,073)
Post employment benefits	(15)	3,435,116	3,551,239	(116,123)
Long term financial liabilities	(16)	144,413,245	159,276,843	(14,863,598)
Long term not financial liabilities	(17)	1,400,373	1,634,539	234,166)
NON-CURRENT LIABILITIES		166,959,831	182,632,919	( 15,673,088)
Trade payables	(18)	83,248,657	88,596,138	5,347,481)
Tax payables	(Tal	4,080,493	4,385,845	305,352)
Derivate liabilities	(10)		173,473	(173,473)
Short term financial liabilities	(20)	116,444,238	94,204,084	22,240,154
Other liabilities	(21)	20,143,799	19,497,967	645,832
CURRENT LIABILITIES		223,917,187	206,857,507	17,059,680
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		489,928,516	499,295,885	( 9,367,369)

Pursuant to Consob Resolution N. 15519 of July 27, 2006, the effects of related party transactions on the Consolidated statement of financial position are presented in the specific scheme provided in the attachment I and are further described in the paragraph "Related party transactions".

	st Half	st Half

st Half	st Half

EMARKET

SDIR certified

CONSOLIDATED CASH FLOW STATEMENT (*)

(Values in thousands of EUR)	Notes	15' Half	15 Half
		2023	2022
Opening balance		21,658	31,307
Profit/loss before taxes		(12,776)	5,662
Amortisation / write-downs		16,369	13,920
Accrual (+)/availment (-) of long term provisions and post employment benefits		101	30)
Paid income taxes		440)	( 2,475)
Financial income (-) and financial charges (+)		4,906	1,300
Change in operating assets and liabilities		3,525)	( 16,261
Cash flow (absorbed) / generated by operating activity	(33)	4,635	2,116
Increase (-) / decrease (+) in intangible fixed assets		(527)	( 750)
Increase (-)/ decrease (+) in tangible fixed assets		2,322)	( 3,535
Increase (-) / decrease (+) in right-of-use assets		4,567)	8,827
Investments and write-downs (-)/ Disinvestments and revaluations (+)		2)
Cash flow (absorbed) / generated by investing activity	(34)	( 7,418)	( 13,112)
Other variations in shareholders' equity		848	(1,051)
Dividends paid
Proceeds (+)/repayment (-) of financial payments		11,443	4,455
Proceeds (+)/ repayment (-) of lease payments		4,067)	1,666
Increase (-)/ decrease (+) in long term financial receivables		199	(1,111)
Financial income (+) and financial charges (-)		4,906)	( 1,300
Cash flow (absorbed) / generated by financing activity	(32)	3,517	2,659
Closing balance		22,392	22,970

*) Pursuant to Consob Resolution N. 15519 of July 27, 2006, the effects of related party transactions on the Consolidated statement of cash flows are presented in the specific scheme provided in the attachment III and are further described in the paragraph "Related party transactions".

(Values in thousands of EUR)	Share capital	reserve Share premium	Cash flow reserve	Other reserves	reserve Value Fair	reserve ામરે	of defined benefi Reamisurement plans reserve	reserve Translation	carried-forward Profit/(losses)	Group profit / loss for the Net	shareholders' Group interest in equity	shareholders Minority interest in equity	Total shareholders' equity
At December 31, 2022	24,606	67,599	( 125)	12,690	7,901	7,607	( 1,225)	( 930)	735	( 9,044)	109,814	( 9)	109,805
Allocation of 2022 income/(loss) Dividends paid Treasury stock (buyback)/sale		5,335						-	3,709) -	9,044 -	-		- -
Total comprehensive income/(loss) at 30/06/23 Other changes			166					682		(11,652)	(10,804)	50	(10,754)
At June 30, 2023	24,606	62,264	41	12,690	7,901	7,607	( 1,225)	( 248)	( 2,974)	( 11,652)	99,010	41	99,051
(Values in thousands of EUR)	Share capital	reserve Share premium	reserve flow Cash	Other reserves	reserve Value Fair	reserve AS	Reamisurement of defined benefit plans reserve	reserve Translation	carried-forward Profit/(losses)	Group Net profit / loss for the	shareholders' Group interest in equity	shareholders' Minority interest in equity	Total shareholders' equity
At December 31, 2021	24,917	69,334	( 16	28,610	7,901	7,607	( 1,466)	( 1,532)	( 27,321)	12,126	120,160		120,160
Allocation of 2021 income/(loss) Dividends paid Treasury stock (buyback)/sale Total comprehensive income/(loss) at 30/06/22 Other changes	(221)	( 1,392)	100	( 15,920)				441	28,046	(12,126) 2,867	(1,613) 3,408		( 1,613) 3,408
At June 30, 2022	24,696	67,942	84	12,690	7,901	7,607	( 1,466)	( 1,091)	725	2,867	121,955	-	121,955

Explanatory notes

GENERAL INFORMATION

Aeffe Group operates worldwide in the luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods.

The Group develops, produces and distributes, with a constant focus on the qualities of uniqueness and exclusivity, its own collections both under its own-label brands, including "Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino" and "Pollini", and licensed brands.

The Group also has licensed to key partners the production of other accessories and products with which it supplements its product range (perfumes, junior and children's lines, sunglasses and other).

The Group's business is divided, based on the various product lines and brands it sells, into two segments: prêt-a-porter (which includes prêt-a-porter, lingerie and swimwear) and footwear and leather goods.

The Parent Company Aeffe, an Italian legal entity incorporated as a public limited company (società per azioni) based in San Giovanni in Marignano (RN), is currently listed in the – Euronext STAR Milan Segment – of the EXM, the Italian Stock Exchange operated by Borsa Italiana.

Aeffe is controlled by Fratelli Ferretti Holding S.r.l..

These consolidated financial statements include the financial statements of the Parent Company Aeffe and its subsidiaries and the Group's equity interests in affiliated companies. They consist of the balance sheet, comprehensive income statement, cash flow statement of changes in equity and these notes.

The financial statements are expressed in euro, since this is the currency in which most of the Group's transactions are conducted. Foreign operations are included in the consolidated financial statements according to the principles stated in the notes that follow.

DECLARATION OF CONFORMITY AND REPORTING PRINCIPLES

The half-year condensed financial statements at June 30, 2023 have been prepared in accordance with International Financial Reporting Standards - "IFRS" - (the designation IFRS also includes all valid International Accounting Standards -"IAS" , as well as all interpretational Financial Reporting Interpretations Committee "IFRIC" , formerly the Standing Interpretations Committee -"SIC"}, issued by the International Accounting Standards Board -"IASB"endorsed by the European Commission according to the procedures in art. 6 of (EC) Regulation n. 1606/2002 of the European Parliament and Council dated July 19, 2002. In particular, these half-year condensed financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting.

In the "Accounting policies" section are showed the international accounting principles adopted.

Unless otherwise indicated in the measurement bases described below, these consolidated financial statements were prepared in accordance with the historic cost principle.

The measurement bases were applied uniformly by all Group companies.

CONSOLIDATION PRINCIPLES

The scope of consolidation at June 30, 2023 includes the financial statements of the Parent Company Aeffe and those of the Italian and foreign companies in which Aeffe holds control either directly or through its subsidiaries and associates or in which it exerts a dominant influence

If necessary, adjustments were made to the financial statements of subsidiaries to bring their accounting polices into line with those adopted by the Group.

Companies are consolidated using the line method. The principles adopted for the application of this method are essentially as follows:

against the corresponding net equity at June 30, 2023 in relation to assumption of the assets and liabilities of the subsidiaries;
allocated as much as possible to the assets and liabilities of the remainder is allocated to goodwill. In accordance with the transitional provisions of IFRS 3, the Group, in case it was present, has ceased to depreciate goodwill, instead subjecting it to impairment tests;
significant transactions between consolidated companies are receivables and payables and earnings not yet realised from third parties arising from transactions between Group companies, excluding any tax effect;
minority interests in shareholders' equity and net profit are reported in the relevant items of the consolidated balance sheet and income statement;
companies acquired during the period are consolidated from the date on which majority control was achieved.

Subsidiaries

Subsidiaries are enterprises controlled by the Company. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are consolidated from the date on which the Group acquires control and until the date when such control ceases.

The acquisition of subsidiaries is accounted for using the acquisition cost is determined by adding together the fair values of the assets transferred, the shares issued and the liabilities assumed on the acquisition date, plus the costs directly associated with the acquisition cost over the Group's percentage share of the fair value of the identifiable assets, liabilities and contingent liabilities of the associate is recognised as goodwill.

If the Group's percentage share of the identifiable assets, liabilities and contingent liabilities of the associate exceeds acquisition cost, the difference is immediately recorded in the income statement.

Intercompany balances, transactions, revenue and costs are eliminated in the consolidated statements.

Furthermore, intercompany business combinations are recognised by maintaining the same book value of assets and liabilities as previously recorded in the consolidated financial statements.

Associates

An associate is an enterprise in which the Group has significant influence, but has neither sole or joint control, by taking part in decisions regarding the company's financial and operating strategy.

Trading results and the assets and liabilities of associates are accounted for in the consolidated financial statements based on the equity method, except where they are classified as held for sale.

According to this method, equity interests in associates are recorded in the balance sheet at cost, adjusted to take account of changes following the acquisition of their net assets, excluding any loss in value of individual investments. Losses of associates that exceed the Group's percentage interest in them (including long-term receivables that essentially form part of the Group's net investment in the associate) are not recognised unless the Group has an obligation to cover them. The surplus acquisition cost over the parentage share of the identifiable assets, liabilities and contingent liabilities of the acquisition date is recognised as goodwill. Goodwill is included in the carrying amount of the investment and is subjected to impairment tests. The historical cost deficit compared with the Group's percentage share of the identifiable assets, liabilities and contingent liabilities of associates on the acquisition date is credited to the income statement in the year of acquisition. With reference to operations between a Group company and an associate, unrealised gains and losses are eliminated in equal measure to the Group's percentage interest in the associate, except for cases where the unrealised losses constitute evidence of impairment of the asset transferred.

SCOPE OF CONSOLIDATION

The companies included in the scope of consolidation are listed in the following table:

Company	l ocation	Currency	Share capital	Direct interest	Indirect interest
Companies included in the scope of consolidation
Italian companies
Aeffe Retail S.p.A.	S.G. in Marignano (RN) Italia	EUR	8,585,150	100%
Moschino S.p.A.	S.G. in Marignano (RN) Italia	EUR	66,817,108	100%
Pollini S.p.A.	Gatteo (FC) Italy	EUR	6,000,000	100%
Pollini Retail S.r.l.	Gatteo (FC) Italy	FUR	5,000,000		100% (i)
Moschino Kids S.r.l.	Padernello di Paese (TV) Italia	FUR	10,000		70% (ii)
Foreign companies
Aeffe France S.a.r.l.	Parigi (FR)	EUR	50,000	100%
Aeffe UK Itd.	Londra (GB)	GBP	310,000	100%
Aeffe USA Inc.	New York (USA)	USD	600,000	100%
Aeffe Germany G.m.b.h.	Metzingen (DE)	EUR	25,000	100%
Aeffe Spagna S.I.u.	Barcelona (E)	EUR	320,000	100%
Aeffe Netherlands B.V.	Rotterdam (NL)	EUR	25,000	100%
Pollini Suisse S.a.g.l.	Chiasso (CH)	CHF	20,000		100% (i)
Pollini Austria G.m.b.h.	Vienna (A)	FUR	35,000		100% (i)
Fashoff UK Itd.	Londra (GB)	GBP	1,550,000		100% (ii)
Moschino Korea I to.	Seoul (ROK)	KRW	6,192,940,000		100% (ii)
Moschino France S.a.r.l.	Parigi (FR)	FUR	50,000		100% (ii)
Moschino USA Inc.	New York (USA)	USD	10,000		100% (ii)
Bloody Mary Inc.	New York (USA)	USD	100,000		100% (ii)
Moschino Asia Pacific Ltd.	Hong Kong (HK)	HKD	500,000		100% (ii)
Moschino Shanghai Ltd	Shanghai (CN)	CNY	17,999,960		100% (iii)

Notes (details of indirect shareholdings):

(i) owned by Pollini Spa;
(ii) owned by Moschino Spa;
(iii) owned by Moschino Asia Pacific; Ltd.

FOREIGN CURRENCIES

Functional and reporting currency

The amounts in the financial statements of each Group enterprise are measured using the operating currency or the currency of the economic area in which the enterprise operates. These consolidated financial statements are presented in euro, which is the operating and reporting currency of the Parent Company.

Foreign currency transactions

Foreign currency transactions are converted into the operating currency at the exchange rate in force on the transaction date. Cash assets and liabilities denominated in foreign currencies are converted at the exchange rate in force on the balance sheet date. Any exchange rate differences arising from the elimination of from the conversion of cash assets and liabilities are posted to the income statement. Non-cash assets and liabilities in foreign currencies that are measured at fair value are converted at the exchange rates in force on the fair value was determined.

Financial statements of foreign companies

The financial statements of companies outside the euro based on the following procedures:

(i) exchange rate in force on the balance sheet date;
(ii) force on the transaction date;
(ii) exchange rate differences are recognised in a separate account in shareholders' equity. When a foreign company is sold, the total amount of accumulated exchange rate differences relating to that company are recorded in the income statement.

The exchange rates used for the conversion into euro of the financial and equity statements of companies included in the scope of consolidation are listed in the following table:

Currency description	Average exchange rate 1* Half 2023	Actual exchange rate 30/06/2023	Average exchange rate FY 2022	Actual exchange rate 31/12/2022	Average exchange rate 1* Half 2022	Actual exchange rate 30/06/2022
Hong Kong Dollar	8.4709	8.5157	8.3163	8.2451	8.5559	8.1493
Renminbi chinese (yuan)	7.4894	7.8983	7.3582	7.0788	7.0823	6.9624
United States Dollar	1.0807	1.0866	1.0666	1.0530	1.0934	1.0387
United Kingdom Pound	0.8764	0.8583	0.8869	0.8528	0.8539	0.8582
South Korean Won	1,400.43	1,435.88	1,344.09	1,358.07	1,347.84	1,351.60
Swiss Franc	0.9856	0.9788	0.9847	1.0047	1.0319	0.9960

FINANCIAL STATEMENT FORMATS

As part of the options available under IAS 1 for the preparation of its economic and financial position, The Group has elected to adopt a balance sheet format that distinguishes between current assets and liabilities, and an income statement that classifies costs by type of expenditure, since this is deemed to reflect more closely its business activities. The cash flow statement is presented using the "indirect" format.

With reference to Consob Resolution n. 15519 dated July 27, 2006 regarding the format of the financial statements, additional schedules have also been presented for the income statement of financial position and the statement of cash flows in order to identify any significant transactions with related parties. This has been done to avoid any compromising the overall legibility of the main financial statements.

ACCOUNTING POLICIES

The accounting policies adopted in the preparation of this half-year financial report are the same used in the preparation of the consolidated financial statement as of December 31, 2021, except for the following interpretations and amendments to the accounting principles that have been mandatory since January 1, 2023.

Accounting standards, amendments and interpretations approved by the European Union, applicable from 1 January 2023,:

amendments to IFRS 17 "Insurance contracts": the new standard establishes the principles for the recognition, evaluation, presentation and disclosure of insurance contracts under the IAS / IFRS international accounting standards. The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents such contracts. This information provides users of the financial statements with a basis for evaluating the effect that insurance contracts have on the financial position, financial results and cash flows of the entity. IFRS 17 was issued in May 2017 and applies to annual financial years starting on or after 1 January 2023;

amendments to IAS 1 "Presentation of Financial Statements": Classification of Liabilities as Current or Noncurrent". The document aims to clarify how to classify debts and other short-term or long-term liabilities. The changes come into force on 1 January 2023; however, early application is permitted;

COMMENTS ON THE CONSOLIDATED BALANCE SHEET

NON-CURRENT ASSETS

1. INTANGIBLE FIXED ASSETS

The table below illustrates the breakdown and the changes of this item:

(Values in thousands of EUR)	Brands	Other	Total
NBV at January 1, 2023	64,508	1,513	66,021
Increases		558	558
- increases externally acquired		558	558
- increases from business aggregations
Disposals		13)	13)
Translation diff. / other variations		18)	18)
Amortisation	(1,747)	354)	2,101)
NBV at June 30, 2023	62,761	1,686	64,447

Changes in intangible fixed assets highlight the following variations:

o increases equal to EUR 558 thousand, mainly related to "Other";
o amortisation of the period equal to EUR 2,101 thousand.

Brands

This item includes the Group's own-label brands ("Alberta Ferretti", "Moschino" and "Pollin"). A breakdown of brands is given below:

(Values in thousands of EUR)	Brand residual life	June 30,	December 31,
		2023	2022
Alberta Ferretti	20	2,457	2,520
Moschino	22	35,096	36,060
Pollini	18	25,208	25,928
Total		62,761	64,508

Other

The item other mainly includes software licences.

2. Tangible fixed assets

The table below illustrates the breakdown and the changes of this item:

(Values in thousands of EUR)

	Lands	Buildings	nts ರ mprovem Leasehold	machinery and Plan	p C mercia equipment Industria com	tangible assets Other	Tota
NBV at January 1, 2023	17,123	25,340	11,209	3,564	318	3,697	61,251
Increases			1,836	139	18	346	2,339
Disposals		7)		।	।	11)	20)
Translation diff. / other variations			24)	2		11)	33)
Depreciation		379)	( 1,882)	405)	(	(512)	3,237
NBV at June 30, 2023	17,123	24,954	11,139	3,299	276	3,509	60,300

Tangible fixed assets are changed as follows:

· Increases for new investments of EUR 2,339 thousand. These mainly refer to new investments in leasehold improvements and buildings.
Disposals, net of the accumulated depreciation, of EUR 20 thousand.
Decrease for translation differences and other variations of EUR 33 thousand.
· Depreciation of EUR 3,237 thousand charged in relation to all tangible fixed assets, except for land, using the rates applicable to each category.

ന് RIGHT-OF-USE ASSETS

The table below illustrates the changes of this item:

(Values in thousands of EUR)	Buildings	Car	Other	Total
NBV at January 1, 2023	108,580	1,153	834	110,567
Increases	4,410	56	106	4,572
Disposals	380)			3801
Translation diff. / other variations	375			375
Depreciation	9,929)	245)	222)	( 10,396)
NBV at June 30, 2023	103,056	964	718	104,738

The item Buildings includes Activities by right of use relating mainly to shop rental contracts and to a residual extent relating to rental contracts for offices, and other spaces. The increases are linked to new lease agreements relating to the opening or relocation of retail stores and the renewal of existing lease agreements.

The entry is changed as follows:

Increases of EUR 4,572 thousand. .
. Decreases of EUR 380 thousand.
· Positive differences arising on translation of EUR 375 thousand.
· Depreciation of EUR 10,396 thousand.

4. EQUITY INVESTMENTS

This item includes holdings represented by the cost.

5. Other fixed assets

The item includes long-term receivables of a non-financial nature.

6. DEFERRED TAX ASSETS AND LIABILITIES

The table below illustrates the breakdown of this item at June 30, 2023 and at December 31, 2022:

(Values in thousands of EUR)	Receivables			Liabilities
	At June 30,	At December 31,		At December 31,
	2023	2022	2023	2022
Tangible fixed assets	4	5	17)	17)
Intangible fixed assets	3	3	144)	144)
Provisions	3,789	3,997	6)	6)
Costs deductible in future periods	787	636	17)	17
Income taxable in future periods			189)	138)
Tax losses carried forward	2,603	1,963
Other	3,566	3,555	(1,053)	1,313)
Tax assets (liabilities) from transition to IAS	3,776	3,736	(13,697)	14,164)
Total	14,528	13,895	( 15,123)	( 15,799)

Changes in temporary differences during the period are illustrated in the following table:

(Values in thousands of EUR)	Opening balance	Differences arising on translation	Recorded in the income statement	Other	Closing balance
Tangible fixed assets	12)		1)		13)
Intangible fixed assets	141)				( 141)
Provisions	3,991	4)	204)		3,783
Costs deductible in future periods	619	1)	140	12	770
Income taxable in future periods	138)		51)		189)
Tax losses carried forward	1,963	91)	1,678	947)	2,603
Other	2,242		270		2,513
Tax assets (liabilities) from transition to IAS	10,428)	1	589	83)	9,921
Total	( 1,904)	( 94)	2,421	( 1,018)	(

Deferred tax assets related to costs deductible in future periods mainly relate to the deferred taxation on provisions for doubtful investments and for risks and charges.

CURRENT ASSETS

7. STOCKS AND INVENTORIES

This item comprises:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022	//	%
Raw, ancillary and consumable materials	8,715	10,956	2,241)	20.5%)
Work in progress	7.162	7,169		(0.1%)
Finished products and goods for resale	106,259	98,569	7,690	7.8%
Advance payments	15	16	1	(6.3%)
Total	122,151	116,710	5,441	4.7%

Inventories of raw materials and work in progress mainly relate to the production of the Autumn/Winter 2022 collections, while finished products mainly concern the Spring/Summer 2023 and the Autumn/Winter 2023 collections and the Spring/Summer 2024 sample collections.

(Values in thousands of EUR)	At December 31,	Increases	Decreases / Other changes	At June 30,
	2022			2023
Inventory write-down fund	20,392)	237)	2,145	18,484)
Total	20,392)	237)	2,145	( 18,484)

The value of inventories is already indicated net of the obsolescence provision equal to EUR 18,484 thousand. The obsolescence provision reflects the best estimate made by management on the basis of the breakdown by year and season of inventories, on the considerations derived from the past experience of sales through alternative channels and the future prospects of sales volumes.

8. TRADE RECEIVABLES

This item is illustrated in details in the following table:

(Values in thousands of EUR)		At June 30, At December 31,		Change
	2023	2022		%
Trade receivables	58,775	66,218	7.443)	11.2%)
(Allowance for doubtfull account)	3,232)	3,367)	ਹ ਤੇ ਦ	(4.0%)
Total	55,543	62,851	( 7,308)	(11.6%)

Trade receivables amount to EUR 58,775 thousand at June 30, 2023, with a 11.2% decrease compared with the amount at December 31, 2022. Management considers that the fair value of amounts due from customers approximates their book value.

The allowance for doubtful accounts is determined by reference to a detailed analysis of the available information and, in general, is based on historical trends.

The following table shows the movements of the bad debt provision for the year:

(Values in thousands of EUR)	At December 31,	Increases	Decreases / Other changes	At June 30,
	2022			2023
(Allowance for doubtful account)	3,367	157	292)	3,232
	3,367	157	( 292)	3,232

0 TAX RECEIVABLES

This item in illustrated in details in the following table:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022		%
VAT	8,690	7,018	1,672	23.8%
Corporate income taxes (IRES)	3,120	2,731	389	14.2%
Local business tax (IRAP)	550	eag	149)	21.3%)
Amounts due by tax authority for withheld taxes	4	5	।	(20.0%)
Other tax receivables	2,575	2,534	41	1.6%
Total	14,939	12,987	1,952	15.0%

As of June 30, 2023, the Group's tax receivables amount to EUR 14,939 thousand, recording an increase of EUR 1,952 thousand compared to December 31, 2022, mainly due to the increase of VAT receivable.

10. DERIVATE ASSETS AND LIABILITIES

The AEFFE Group, characterized by an important presence in international markets, is exchange rate risk mainly for purchases by the subsidiary Pollini in US Dollars (USD). The Group signs forward currency derivative contracts (USD) at term (Forward) with primary credit institutions to cover the aforementioned risk. These contracts are set up to cover a specific percentage of expected purchase volumes in USD. At the balance sheet date, the notional amount of forward currency contracts stipulated is USD 5,500 thousand at 30/06/2022). All contracts opened at 30/06/2023 will expire in 2023.

The composition of the derivative financial instruments in place at June 30, 2022 is summarized below with an indication of the respective current accounting values referring to the fair value and fair value of the cash flow hedge reserve, this last shown net of the related deferred tax effect:

(Values in thousands of EUR)	At June 30, 2023			At December 31, 2022
	Assets	Liabilities	Hedging Reserve	Assets	liabilities	Hedging Reserve
Forward contracts for cash flow hedge exchange rate risk
TOTAL NON CURRENT
Forward contracts for cash flow hedge exchange rate risk	57		41		(173)	( 125)
TOTAL CURRENT	57		41	l	( 173)	( 125)

The cash flow hedge reserve relating to forward contracts hedging the currencies amounts to EUR 41 thousand net of the related tax effect (EUR -16 thousand).

The transfer to the 1* Half 2023 income statement of the hedging transactions on exchange rate risk was equal to EUR 246 thousand brought to costs increase.

11. Cash

This item includes:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022	11	%
Bank and post office deposits	22,007	21,131	876	4.1%
Cheques	20	27		25.9%)
Cash in hand	365	500	(135)	(27.0%)
Total	22,392	21,658	734	3.4%

Bank and postal deposits represent the nominal value of the current account balances with credit institutions, including interest accrued on the balance sheet date. Cash in hand and equivalents represent the nominal value of the cash held on the balance sheet date.

The increase in cash and cash equivalent, recorded at June 30, 2023 compared with the amount recorded at December 31, 2022, is EUR 734 thousand. About the reason of this variation refer to the Statement of Cash Flows.

12. OTHER RECEIVABLES

This caption comprises:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022	く	%
Credits for prepaid costs	25,754	27,559	1,805)	(6.5%)
Advances for royalties and commissions	160	15	145	966.7%
Advances to suppliers	297	130	167	128.5%
Accrued income and prepaid expenses	2,186	1,716	470	27.4%
Other	2,394	3,699	( 1,305)	(35.3%)
Total	30,791	33,119	( 2,328)	(7.0%)

Other current receivables decrease by EUR 2,328 thousand mainly for the decrease of prepaid leases and credits for prepaid costs and of prepayments and accrued income generated by the seasonality of the business.

Credits for prepaid costs relate to the costs incurred to design and make samples for the Spring/Summer 2024 collections, which the corresponding revenues from sales have not been realised yet for and the partial suspension of the same costs for the Autumn/Winter 2023 collections.

13. SHAREHOLDERS' EQUITY

Described below are the main categories of shareholders' equity at June 30, 2023, while the corresponding variations are described in the prospect of shareholders' equity.

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022	△
Share capital	24,606	24,606
Share premium reserve	62,264	67,599	5,335)
Cash flow reserve	41	125)	166
Other reserves	12,690	12,690
Fair value reserve	7,901	7,901
IAS reserve	7,607	7,607
Reamisurement of defined benefit plans reserve	1,225	1,225
Translation reserve	248)	930)	682
Profits / (losses) carried-forward	2,974)	735	3,709)
Net profit / (loss) for the Group	11,652)	9,044)	2,608)
	41	9)	50
Total	99,051	109,805	( 10,804)

SHARE CAPITAL

Share capital as of June 30, 2023, totally subscribed and paid, (gross of treasury shares) totals EUR 26,841 thousand), and is represented by 107,362,504 shares, par value EUR 0.25 each. At June 30, 2023 the Parent Company holds 8,937,519 treasury shares, representing the 8.325% of its share capital.

There are no shares with restricted voting rights, with preferential rights. No treasury shares of the Parent Company were purchased during the period.

SHARE PREMIUM RESERVE

The variation in the share premium reserve amounts to EUR 5,335 thousand and it is related to cover the prior-year loss of the Parent Company.

CASH FLOW RESERVE

For the change in the cash flow hedge reserve of EUR 166 thousand, please refer to note 10 of the assets and liabilities for derivatives.

OTHER RESERVES

This item did not change during the half-year.

FAIR VALUE RESERVE

The fair value reserve derives from the application of IAS 16 in order to measure the land and buildings owned by the Company at their fair value, as determined with reference to an independent appraisal.

IAS RESERVE

The IAS reserve, formed on the first-time adoption of IFRS, reflects the differences in value that emerged on the transition from ITA GAAP to IFRS. The differences reflected in this equity reserve are stated net of tax effect, as required by IFRS 1. Each difference was allocated on a pro rata basis to minority interests.

REAMISUREMENT OF DEFINED BENEFIT PLANS RESERVE

The reamisurement of defined benefit plans reserve amounts to EUR -1.225 thousand and it remains unchanged since December 31, 2022.

TRANSLATION RESERVE

The translation reserve amounts to EUR -248 thousand and is related to the conversion of companies' financial statements in other currency than EUR.

PROFITS/(LOSSES) CARRIED-FORWARD

The caption Profits/(losses) carried-forward decrease mainly as a consequence of the corded during the year ended at December 31, 2022.

NON-CURRENT LIABILITIES

14. Provisions

Provisions are illustrated in the following statement:

(Values in thousands of EUR)	At December 31,	Increases	Decreases	At June 30,
	2022			2023
Pensions and similar obligations	1,409	318	62)	1,665
Other	962	150	189)	923
Total	2,371	468	(251)	2,588

The supplementary clientele severance indemnity fund is determined based on an estimate of the liability relating to the severance of agency contracts, taking account of statutory provisions and any other relevant factor, such as statistical data, average duration of agency contracts and their rate of turnover. The item is calculated based on the actual value of the outflow necessary to extinguish the obligation.

The other provisions mainly relate to provisions for future charges and risks linked to organizational changes.

Potential tax liabilities for which no reserves have been established, since it is not considered probable that they will give rise to a liability for the Group, are described in the paragraph "Contingent liabilities".

15. Post-employment benefits

The severance indemnities payable on a deferred basis to all employees of the Group are deemed to represent a defined benefits plan (IAS 19), since the employer's obligation does not cease on payment of the contributions due on the remuneration paid, but continue until termination of the employment relationship.

For plans of this type, the standard requires the amount accrued to be projected forward in order to determine the amount that will be paid on the termination of employment, based on an actuarial valuation that takes account of employee turnover, likely future pay increases and any other applicable factors. This methodology does not apply to those employees whose severance indemnities are paid into approved supplementary pension funds which, in the circumstances, are deemed to represent defined contributions plans.

(Values in thousands of EUR)	At December 31,		Increases Decreases/ Other variations	At June 30,
	2022			2023
Post employment benefits	3,551	28	144)	3.435
Total	3,551	28	(144)	3,435

Changes in the provision are illustrated in the following statement:

Increases include the share of post employment benefits matured in the related revaluation, while the entry decreases/other changes includes the decrease for the liquidation of the post employment benefits and the actuarial loss.

16. Long-term financial liabilities

The following table contains details of long-term borrowings:

(Values in thousands of EUR)		At June 30, At December 31,		Change
	2023	2022	1	%
Loans from financial institutions	59,307	70,444	11,137)	(15.8%)
Lease liabilities	85,106	88,833	3,727)	(4.2%)
Total	144,413	159,277	(14,864)	(9.3%)

The entry "Loans from financial institutions" relates to the portion of bank loans due beyond 12 months. It is about unsecured loans and bank finance not assisted by any form of security and they are not subject to special clauses, except for the early repayment clauses normally envisaged in commercial practice. The only exception is a mortgage loan on the property located in Gatteo headquarters of the subsidiary Pollina S.p.A. of EUR 14,113 thousand.

Furthermore, there are no covenants to comply with specific financial terms or negative pledges.

Lease liabilities relate to the application of IFRS 16.

The following table contains details of bank loans as of June 30, 2023, including the current portion and long term portion:

(Values in thousands of EUR)		Total amount

Bank borrowings	79,742	20,435	59,307
Total	79,742	20,435	59,307

It should be noted that the amount due beyond five years amounts to EUR 4,909 thousand.

17. LONG-TERM NOT FINANCIAL LIABILITIES

The item amounts to EUR 1,400 thousand at June 30, 2023, decreasing compared to EUR 1,635 thousand December 31, 2022.

CURRENT LIABILITIES

18. TRADE PAYABLES

The item is compared with the respective value at December 31, 2022:

(Values in thousands of EUR)		At June 30, At December 31,	Change
	2023	2022		%
Trade payables	83,249	88,596	5,347)	(6.0%)
Total	83,249	88,596	5,347)	(6.0%)

Trade payables are due within 12 months and concern debts for supplying goods and services.

19. TAX PAYABLES

Tax payables are analysed in comparison with the related balances as of December 31, 2022 in the following table:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022	(	%
Local business tax (IRAP)	393	161	232	144.1%
Corporate income tax (IRES)	290	71	219	308.5%
Amounts due to tax authority for withheld taxes	1,936	2,439	503)	(20.6%)
VAT due to tax authority	1,165	871	294	33.8%
Other	296	844	548)	(64.9%)
Total	4,080	4,386	( 306)	(7.0%)

Tax payables decrease of EUR 306 thousand compared with December 31, 2022.

20. SHORT-TERM FINANCIAL LIABILITIES

A breakdown of this item is given below:

(Values in thousands of EUR)	At June 30,	At December 31,	Change
	2023	2022		%
Due to banks	100,711	78,131	22,580	28.9%
Lease liabilities	15,733	16,073	340)	(2.1%)
Total	116,444	94,204	22,240	23.6%

Current bank debts include advances granted by credit institutions, current portion of long-term financing commitments. Advances mainly consist of withdrawals from short-term credit facilities to finance the working capital requirement.

Leasing payables relate to the application of IFRS16.

21. OTHER LIABILITIES

Other current liabilities are analysed on a comparative basis in the following table:

(Values in thousands of EUR)	At June 30,	At December 31,		Change
	2023	2022	バ	%
Due to total security organization	3,672	3,628	44	1.2%
Due to employees	7,541	5,274	2,267	43.0%
Trade debtors - credit balances	3,094	2,957	137	4.6%
Accrued expenses and deferred income	2,003	3,702	1,699)	(45.9%)
Other	3,834	3,937	103)	(2.6%)
Total	20,144	19,498	646	3.3%

The entry Other liabilities records an increase of EUR 646 thousand compared to December 31, 2022.

SEGMENT INFORMATION REGARDING PROFIT OR LOSS, ASSETS AND LIABILITIES

In order to apply the IFRS 8 the Group has considered to delineate as operative sectors the same used by IAS 14 Segment reporting: Prêt-à porter Division and leather goods Division. Such decision has been taken because they represent business activities from which the entity may earn revenues and incur expenses, whose operating result are regularly reviewed by the entity's chief operating decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

Prêt-à porter Division is mainly represented by the companies Aeffe and Moschino, operating in the design, production and distribution of luxury prêt-à porter and lingerie, beachwear and loungewear collections.

In terms of prêt-à porter collections, the activity is carried out by Aeffe, both for the Group's own-label brands ("Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Boutique Moschino" and "Love Moschino") and brands licensed from other companies. Aeffe also handles the distribution products, which takes place via the retail channel through subsidiaries and via the wholesale channel.

Furthermore Aeffe manufactures and distributes lingerie and swimwear collections, and specifically men's lingerie, underwear, beachwear and loungewear. Collections are produced and distributed under the Group's own-label brands such as "Moschino", and under third-party licensed brands.

The Prêt-a-porter Division also manages licensing agreements granted to manufacture Aeffe and Moschino branded product lines such as the "Moschino" brand licensing to the love line, "Moschino" branded perfumes and sunglasses.

The footwear and leather goods Division, which is composed of Pollini and its subsidiaries, mainly handles the design, production and distribution of footwear, small leather goods, bags and matching accessories made from exclusive materials. The operating activity is mainly carried out by Pollini, which directly handles the design, production and distribution of own-label products, as well as the production of brands licensed by Group companies.

The footwear and leather goods division also manages licensing agreements granted to other companies to manufacture "Pollini" products such as umbrellas, foulards and ties.

The following tables indicate the main economic data for the first half-year 2023 and 2022 of the Prêt-à porter and Footwear and leather goods Divisions:

(Values in thousand of EUR)	Prêt-à porter	Footwear and	Elimination of	Total
	Division	leather goods	intercompany
15t Half 2023		Division	transactions
SECTOR REVENUES	108,820	75,263	21,209)	162,874
Intercompany revenues	8,010)	13,199)	21,209
Revenues with third parties	100,810	62,064		162,874
Gross operating margin (EBITDA)	971	7,528		8,499
Amortisation	12,780)	2,953)		(15,733)
Other non monetary items:
Write-downs	481)	( 155)		636)
Net operating profit / loss (EBIT)	( 12,290)	4,420		( 7,870)
Financial income	107	184		291
Financial expenses	4,141)	1,056)		5,197
Profit / loss before taxes	( 16,324)	3,548		( 12,776)
Income taxes	2,340	1,166)		1,174
Net profit / loss	13,984)	2,382		( 11,602)

(Values in thousand of EUR)	Prêt-à porter	Footwear and	Elimination of	Total
	Division	leather goods	intercompany
155 Half 2022		Division	transactions
SECTOR REVENUES	120,181	80,172	23,847)	176,506
Intercompany revenues	8,737)	15,110)	23,847
Revenues with third parties	111,444	65,062		176,506
Gross operating margin (EBITDA)	12,784	8,098		20,882
Amortisation	(10,629)	(2,291)		(12,920)
Other non monetary items:
Write-downs	780)	(220)		(1,000)
Net operating profit / loss (EBIT)	1,375	5,587		6,962
Financial income	466	681	26)	1,121
Financial expenses	(1,722)	( 725)	26	2,421)
Profit / loss before taxes	119	5,543		5,662
Income taxes	(1,022)	(1,773)		2,795)
Net profit / loss	903)	3,770		2,867

The following tables indicate the main patrimonial and financial data at June 30, 2023 and December 31, 2022 of the Prêt-à porter and Footwear and leather goods Divisions:

(Values in thousand of EUR) At June 30, 2023	Prêt-à porter Division	Footwear and leather goods Division	Elimination of intercompany transactions	Total

SECTOR ASSETS	352,070	151,122	42,730)	460,462
of which non-current assets (*)
Intangible fixed assets	39,159	25,288		64,447
Tangible fixed assets	52,732	7,568		60,300
Right-of-use assets	93,738	11,000		104,738
Other non-current assets	23	19		42
OTHER ASSETS	24,323	5,144		29,467
CONSOLIDATED ASSETS	376,393	156,266	( 42,730)	489,929
SECTOR LIABILITIES	328,242	86,162	42,730)	371,674
OTHER LIABILITIES	12,816	6,387		19,203
CONSOLIDATED LIABILITIES	341,058	92,549	(42,730)	390,877

(*) Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts

(Values in thousand of EUR)	Prêt-à porter	Footwear and	Elimination of	Total
At December 31, 2022	Division	leather goods	intercompany
		Division	transactions
SECTOR ASSETS	360,176	154,968	42,730)	472,414
of which non-current assets (*)
Intangible fixed assets	39,996	26,025		66,021
Tangible fixed assets	53,524	7,727		61,251
Right-of-use assets	99,009	11,558		110,567
Other non-current assets	220	19		239
OTHER ASSETS	22,448	4,437		26,885
CONSOLIDATED ASSETS	382,624	159,405	( 42,730)	499,299
SECTOR LIABILITIES	320,179	91,856	42,730)	369,305
OTHER LIABILITIES	13,807	6,378		20,185
CONSOLIDATED LIABILITIES	333,986	98,234	42,730)	389,490

(*) Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts

Segment information by geographical area

The following table indicates the revenues for the first half-year 2023 and 2022 divided by geographical area:

(Values in thousands of EUR)	1° Half		12 Half			Change
	2023	%	2022	0%	バ	%
Italy	68,177	41.9%	71,301	40.4%	3,124)	(4.4%)
Europe (Italy excluded)	50,217	30.8%	59,316	33.6%	9,099)	(15.3%)
Asia and Rest of the World	34,359	21.1%	31,546	17.9%	2,813	8.9%
America	10,121	6.2%	14,343	8.1%	4,222)	(29.4%)
Total	162,874	100.0%	176,506	100.0%	( 13,632)	(7.7%)

EMARKET SDIR ertifil

COMMENTS ON THE CONSOLIDATED INCOME STATEMENT

22. Revenues from sales and services

Accounting Policy:

Revenues from sales and services derive mainly from the sale of goods with the recognition of "at poin in time" revenues when the asset was transferred to the customer. This is provided for both the Wholesale distribution (shipment of goods to the customer, and for retail distribution when the asset is sold through a physical store. With regard to the export of goods, the control can be transferred in various stages depending on the type of product). Incoterm applied to the specific customer This premise leads to a limited judgment on the control passage of the asset and the consequent recognition of the revenue.

A part of the group's revenues derives from the recognition of the Roylaties, agreed, based on a predetermined percentage in the contract with the customer, on the net turnover. The royalties accrue "at point in time", therefore at the time of issue by the Licensee, of the invoices for the sale of the products granted.

Determination of the transaction price:

Most of the Group's revenues derive from list prices that can vary depending on the type of product, brand and geographical region. Some contracts with the Group's Retail Companies provide for the transfer of control with the right of return. Being intra-group transactions they do not impact the consolidated financial statements as they are eliminated.

With regard to the recognition of Royalties, these are calculated based on a percentage of the Licensee's net sales. The percentage may vary depending on the type of product.

(Values in thousands of EUR)	Prêt-à porter	Footwear and	Elimination of	Tota
1st Half 2023	Division	leather goods	intercompany
		Division	transactions
Geographical area	108,820	75,263	( 21,209)	162,874
Italy	46,806	38,341	16,970)	68,177
Europe (Italy excluded)	23,871	27,754	1,408)	50,217
Asia and Rest of the World	27,836	7,655	1,132)	34,359
America	10,307	1,513	1,699)	10,121
Brand	108,820	75,263	( 21,209)	162,874
Alberta Ferretti	12,000	911	1,145)	11,766
Philosophy	8,905	279	412)	8,772
Moschino	86,946	55,438	19,263)	123,121
Pollini		17,186	ி	17,177
Other	969	1,449	380)	2,038
Distribution channel	108,820	75,263	( 21,209)	162,874
Wholesale	61,594	64,893	15,909	110,578
Retail	36,683	10,298	21	47,002
Royalties	10,543	72	5,321)	5,294
Timing of goods and services transfer	108,820	75,263	( 21,209)	162,874
POINT IN TIME (transfer of significant risks and benefits connected to the property of the asset)	98,277	75,191	( 15,888)	157,580
POINT IN TIME (Royalties accrual on Licensee's turnover)	10,543	72	(5,321)	5,294

Breakdown of revenues from sales and services (IFRS 15)

23. OTHER REVENUES AND INCOME

This item comprises:

(Values in thousands of EUR)	15t Half	12 Half		Change
	2023	2022		%
Other income	5,695	4,249	1,446	34.0%
Total	5,695	4,249	1,446	34.0%

In 1H 2023, the caption other revenues and income, which amounts to EUR 5,695 thousand, is composed by co-branding activities, time expiry of receivables that arose in prior years, exchange gains on commercial transaction, rental income, sales of raw materials and packaging.

24. Costs of raw materials

(Values in thousands of EUR)	1° Half	15 Half		Change
	2023	2022		%
Raw, ancillary and consumable materials and goods fo	70,732	89,843	19,111)	(21.3%)
Total	70,732	89,843	19,111)	(21.3%)

The entry purchase of raw materials decreases of EUR 19,111 thousand.

This item mainly includes costs for the acquisition of raw materials such as fabrics, threads, skins and accessories, purchases of finished products for resale (products sold) and packaging.

25. Costs of services

This item comprises:

(Values in thousands of EUR)	15t Half	15t Half		Change
	2023	2022	△	0%
Subcontracted work	14,442	13,318	1,124	8.4%
Consultancy fees	11,724	11,057	667	6.0%
Advertising	8,684	7,980	704	8.8%
Commission	5,330	5,607	277	(4.9%)
Transport	5,199	6,125	926)	(15.1%)
Utilities	1,215	1,477	262)	(17.7%)
Directors' and auditors' fees	1,712	1,810	98)	(5.4%)
Insurance	361	451	90)	(20.0%)
Bank charges	445	697	252)	(36.2%)
Travelling expenses	ਰੂਰਤੋ	632	361	57.1%
Other services	5,308	4,054	1,254	30.9%
Total	55,413	53,208	2,205	4.1%

Costs of services increase from EUR 53,208 thousand in the 1H 2022 to EUR 55,413 thousand in the 1H 2023, up by 4.1%. The increase is mainly due to the increase in "subcontracted work", "consultancy fees" and "adverting".

26. Costs for use of third parties assets

This item comprises:

(Values in thousands of EUR)	1° Half	1 * Half		Change
	2023	2022	/ /	%
Rental expenses	2,522	3,063	541)	(17.7%)
Royalties	418	580	162)	27.9%)
Hire charges and similar	452	371	81	21.8%
Total	3,392	4,014	622)	(15.5%)

The costs for use of third parties assets decreases by EUR 622 thousand from EUR 4,014 thousand in 1H 2022 to EUR 3,392 thousand in 1H 2023.

27. LABOUR COSTS

The item includes:

(Values in thousands of EUR)	1° Half	1° Half		Change
	2023	2022		%
Labour costs	36,868	34,399	2.469	7.2%
Total	36,868	34,399	2,469	7.2%

Labour costs increase from EUR 34,399 thousand in 1H 2022 to EUR 36,868 thousand in 1H 2023 with an incidence on revenues which increases from 19.5% in the first semester 2022 to 22.6% in the first semester 2023.

The workforce changes from an average of 1,325 units in the 1H 2022 to 1,426 units in the 1H 2023.

Average number of employees by category	15 Half	15 Half		Change
	2023	2022		%
Workers	231	232	1)	(0.4%)
Office staff-supervisors	1,168	1,063	105	9.9%
Executive and senior managers	27	30	3)	(10.0%)
Total	1,426	1,325	101	7.6%

28. OTHER OPERATING EXPENSES

This item includes:

(Values in thousands of EUR)	12 Half	1 - Half		Change
	2023	2022	ದ	%
Taxes	547	534	13	2.4%
Gifts	192	122	70	57.4%
Contingent liabilities	226	94	132	140.4%
Write-down of current receivables	80	261	181	(69.3%)
Foreign exchange losses	2,349	1,333	1,016	76.2%
Other operating expenses	341	367	26)	(7.1%)
Total	3,735	2,711	1,024	37.8%

29. AMORTISATION, WRITE-DOWNS AND PROVISIONS

This item includes:

(Values in thousands of EUR)	12 Half	12 Half		Change
	2023	2022	17	%
Amortisation of intangible fixed assets	2,101	2,012	89	4.4%
Depreciation of tangible fixed assets	3,237	2,280	957	42.0%
Depreciation of right-of-use assets	10,396	8,627	1,769	20.5%
Write-downs	635	1,000	365)	(36.5%)
Total	16,369	13,919	2,450	17.6%

30. FINANCIAL INCOME/ EXPENSES

This item includes:

(Values in thousands of EUR)	1st Half	15t Half		Change
	2023	2022	△	ಗಿಂ
Interest income	17	207	190)	(91.8%)
Foreign exchange gains	224	867	643)	(74.2%)
Financial discounts	50	48	2	4.2%
Financial income	291	1,122	( 831)	(74.1%)
Bank interest expenses	3,033	384	2,649	689.8%
Other interest expenses	218	135	83	61.5%
Foreign exchange losses	ਰੇਰੇ	633	534)	84.4%
Other expenses	651	354	297	83.9%
Financial expenses	4,001	1,506	2,495	165.7%
Leasing interest expenses	1,196	ਰ 16	280	30.6%
Financial expenses on right-of-use asset	1,196	ਰ 16	280	30.6%
Total	4,906	1,300	3,606	277.4%

The total entry financial income/expenses increases mainly due to higher interests.

INCOME TAXES

This item includes:

(Values in thousands of EUR)	1 °C Half	1 ° Half		Change
	2023	2022		%
Current income taxes	1.856	4,581	2,725)	(59.5%)
Deferred income/(expenses) taxes	2,421)	1,416)	1,005)	71.0%
Taxes related to previous years	610)	370)	(240)	64.9%
Total income taxes	( 1,175)	2,795	(3,970)	n.a.

Details of deferred tax assets and liabilities and changes in this item are described in the paragraph on deferred tax assets and liabilities.

The reconciliation between actual and theoretical taxation for the 1H 2022 is illustrated in the following table:

(Values in thousands of EUR)	1st Half	1 * Half
	2023	2022
Profit before taxes	(12,776)	5,662
Theoretical tax rate	24.0%	24.0%
Theoretical income taxes (IRES)	( 3,066)	1,359
Fiscal effect	467)	3,798
Effect of foreign tax rates	2,391	1,420)
Total income taxes excluding IRAP (current and deferred)	( 1,142)	3,737
IRAP (current and deferred)	( 33)	(942)
Total income taxes (current and deferred)	( 1,175)	2,795

This reconciliation of the theoretical and effective tax rates does not take account of IRAP, given that it does not use profit before taxes to calculate the taxable amount. Accordingly, the inclusion of IRAP in the reconciliation would generate distorting effects between years.

32. RESULT PER SHARE

Reference earning(loss)

The calculation of basic and dilutive earning/(loss) per share is based on the following elements:

(Values in thousands of EUR)	15t Half	1st Half
	2023	2022

From continuing activities
Earnings for determining basic earnings per share	11,652)	2,867
Earnings for determing earnings per share	11,652)	2,867
Dilutive effects
Earnings for determing dilutive earnings per share	11,652)	2,867
From continuing and discontinued activities
Earnings for the period	11,652)	2,867
Earnings from discontinued operations
Earnings for determining basic earnings per share	11,652)	2,867
Dilutive effects
Earnings for determing dilutive earnings per share	11,652)	2,867
Number of reference share
Average number of shares for determing earnings per share	98,425	98,786
Share options
Average number of shares for determing diluted earnings per share	98,425	98,786

Basic earning/(loss) per share

Group loss attributable to holders of ordinary shares of parent company AEFFE S.p.A., amounts to EUR 11,652 thousand (June 2022: EUR +2,867 thousand).

Dilutive earning/(loss) per share

The calculation of diluted earnings per share for the period January - June 2023, matches with the calculation of basic earnings per share, as there are no tools with potential dilutive effects.

COMMENTS ON THE CONSOLIDATED STATEMENT OF CASH FLOWS

The cash flow generated during the first half of 2023 is EUR 734 thousand.

(Values in thousands of EUR)	15 Half 2023	1° Half 2022
Opening balance (A)	21,658	31,307
Cash flow (absorbed)/ generated by operating activity (B)	4,635	2,116
Cash flow (absorbed)/ generated by investing activity (C)	7,418)	13,112)
Cash flow (absorbed)/ generated by financing activity (D)	3,517	2,659
Increase/(decrease) in cash flow (E)=(B)+(C)+(D)	734	8,337)
Closing balance (F)=(A)+(E)	22,392	22,970

33. CASH FLOW (ABSORBED)/ GENERATED BY OPERATING ACTIVITY

The cash flow generated by operating activity during the first half of 2023 amounts to EUR 4,635 thousand.

The cash flow comprising these funds is analysed below:

(Values in thousands of EUR)	15t Half	15 Half
	2023	2022
Profit before taxes	(12,776)	5,662
Amortisation / write-downs	16,369	13,920
Accrual (+)/availment (-) of long term provisions and post employment benefits	101	30)
Paid income taxes	440)	2,475)
Financial income (-) and financial charges (+)	4,906	1,300
Change in operating assets and liabilities	3,525)	16,261
Cash flow (absorbed) / generated by operating activity	4,635	2,116

34. CASH FLOW (ABSORBED)/ GENERATED BY INVESTING ACTIVITY

The cash flow absorbed by investing activity during the first half of 2023 amounts to EUR 7,418 thousand.

The factors comprising these funds are analysed below:

(Values in thousands of EUR)	15 Half	1 - Half
	2023	2022
Increase (-)/ decrease (+) in intangible fixed assets	527)	750)
Increase (-)/ decrease (+) in tangible fixed assets	2,322)	3,535)
Increase (-)/ decrease (+) in right-of-use assets assets	4,567)	8,827)
Investments and write-downs (-)/ Disinvestments and revaluations (+)	2
Cash flow (absorbed) / generated by investing activity	7,418)	13,112)

35. CASH FLOW (ABSORBED)/ GENERATED BY FINANCING ACTIVITY

The cash flow generated by financing activity during the first half of 2023 amounts to EUR 3,517 thousand.

The factors comprising these funds are analysed below:

(Values in thousands of EUR)	15 Half	1 ° Half
	2023	2022
Other variations in reserves and profits carried-forward of shareholders' equity	848	1,051)
Dividends paid
Proceeds (+)/repayment (-) of financial payments	11,443	4,455
Proceeds (+)/repayment (-) of leasing payments	4,067)	1,666
Increase (-)/ decrease (+) in long term financial receivables	199	1,111)
Financial income (+) and financial charges (-)	4,906)	1,300)
Cash flow (absorbed) / generated by financing activity	3,517	2,659

OTHER INFORMATION

36. INCENTIVE PLANS

Regarding the long term incentive plans reserved to executive directors of Aeffe S.p.A., please refer to the indicated in the Report on remuneration available from the governance section of the following website: www.aeffe.com.

37. STATEMENT OF INDEBTEDNESS

As required by ESMA guidance 32-382-1138 of March 4, 2021, in line with the "Warning no. 5/21 "of April 29, 2021 of Consob, it should be noted that the debt of the Aeffe Group at June 30, 2023 is as follows:

(Values in thousands of EUR)	At June 30,	At December 31,
	2023	2022
A - Cash	22,392	21,658
B - Cash equivalents
C - Other current financial assets
D - Liquidity (A + B + C)	22,392	21,658
E - Current financial debt	80,277	58,998
F - Current portion of non-current financial debt	36,168	35,206
G - Current financial indebtedness (E + F	116,445	94,204
H - Net current financial indebtedness (G - D)	94,053	72,546
I - Non-current financial debt (excluding current portion and debt instruments)	144,413	159,277
J - Debt instruments
K - Non-current trade and other payables
L - Non-current financial indebtedness (I + J + K)	144,413	159,277
M - Total financial indebtedness (H + L)	238,466	231,823

The financial position of the Group at June 30, 2023 shows a DEBT of EUR 137,627 thousand net of the IFRS 16 effect (EUR 142,447 thousand as at March 31, 2023).

38. RELATED PARTY TRANSACTIONS

Reciprocal transactions and balances between Group companies included within the scope of consolidation are eliminated from the consolidated financial statements and as such will not be described here. Operations carried out with related parties mainly concern the exchange of goods, the performance of services and the provision of financial resources. All transactions arise in the ordinary course of business and are settled on market terms that are or would be applied between two independent parties.

The Group's business dealing with other related parties are summarised below:

(Values in thousands of EUR)	15 Half	1st Half	Nature of the
	2023	2022	transactions

Shareholder Alberta Ferretti with Aeffe S.p.a.
Contract for the sale of artistic assets and design	500	500	Costo
Ferrim with Aeffe S.p.a.
Property rental	ਦਾ ਹੈ। ਹਵਾਲੇ	58	Costo
Commerciale Valconca with Aeffe S.p.a.
Commercial	79	71	Ricavo
Property rental	33	63	Costo
Commercial	592	592	Credito
Commercial	ર્દિક	ર્દિક	Debito
Aeffe USA with Ferrim USA
Commercial		63	Ricavo
Commercial	125	ਰੇ01	Credito
Commercial	316	132	Debito
Short term financial		3,177	Credito

The following table indicates the data related on the incidence of related party transactions on the income statement, balance sheet, cash flow and indebtedness at June 30, 2023 and at June 30, 2022.

(Values in thousands of EUR)	Balance	Value rel.	%	Balance	Value rel	%
		party			party
	1 ડા Half	2023		1° Half	2022
Incidence of related party transactions on the income statement
Revenues from sales and services	162,874	79	0.0%	176,506	71	0.0%
Costs of services	55,413	500	0.9%	53,208	500	0.9%
Costs for use of third party assets	3,392	84	2.5%	4,014	121	3.0%
Financial income	291		0.0%	1,121	63	5.6%
Incidence of related party transactions on the balance sheet
Trade receivables	55,543	717	1.3%	58,208	1,493	2.6%
Short term financial receivables			#DIV/0!	3,177	3,177	100.0%
Trade payables	83,249	379	0.5%	92,599	195	0.2%
Incidence of related party transactions on the cash flow
Cash flow (absorbed) / generated by operating activities	4,635	334)	n.a.	2,116	596)	n.a
Cash flow (absorbed) / generated by financial activities	3,517		0.0%	2,659	263)	n.a
Incidence of related party transactions on the indebtedness
Net financial indebtedness	238,466)	334)	0.1%	182,939)	859)	0.5%

39. ATYPICAL AND/OR UNUSUAL TRANSACTIONS

Pursuant to Consob communication DEM/6064293 dated July 28, 2006, it is confirmed that in the first half of 2023 the Group did not enter into any atypical and/or unusual transactions, as defined in that communication.

40. SIGNIFICANT NON RECURRING EVENTS AND TRANSACTIONS

It is confirmed that in during the period no significant non-recurring events and transactions have been realised.

41. CONTINGENT LIABILITIES

Fiscal disputes

In consideration of the fact that there are no significant tax disputes, no provision has been set aside.

Attachments of the explanatory notes

ATTACHMENT I : Consolidated Balance Sheet with related parties
ATTACHMENT II : Consolidated Income Statement with related parties
ATTACHMENT III : Consolidated Cash Flow Statement with related parties

(Values in units of EUR)	Notes	At June 30,	ot which	At December 31,	ot which
		2023	Rel. parties	2022	Rel. parties
Trademarks		62,761,044		64,507,805
Other intangible fixed assets		1,686,437		1,513,335
Intangible fixed assets	(1)	64,447,481		66,021,140
Lands		17,123,494		17,123,494
Buildings		24,953,981		25,339,662
Leasehold improvements		11,138,665		11,208,330
Plant and machinary		3,298,879		3,564,074
Equipment		276,082		318,192
Other tangible fixed assets		3,509,027		3,696,868
Tangible fixed assets	(2)	60,300,128		61,250,620
Right-of-use assets	(3)	104,738,196		110,566,821
Equity investments	(4)	41,196		39,197
Other fixed assets	(5)	833		199,911
Deferred tax assets	(6)	14,527,763		13,894,621
NON-CURRENT ASSETS		244,055,597		251,972,310
Stocks and inventories	(7)	122,150,854		116,709,745
Trade receivables	(8)	55,543,273	717,119	62,850,576	640,464
Tax receivables	(9)	14,939,140		12,987,118
Derivate assets	(10)	56,651
Cash	(11)	22,391,656		21,657,539
Financial receivables	O
Other receivables	(12)	30,791,345		33,118,597
CURRENT ASSETS		245,872,919		247,323,575
TOTAL ASSETS		489,928,516		499,295,885
Share capital		24,606,247		24,606,247
Other reserves		89,029,880		93,516,643
Profits/(losses) carried-forward		( 2,973,651)		735,589
Net profit/(loss) for the Group		(11,651,978)		9,043,968
Group interest in shareholders' equity		99,010,498		109,814,511
Minority interests in share capital and reserves		( 9,052)		3,000
Net profit / (loss) for the minority interests		50,052		12,052)
Minority interests in shareholders' equity		41,000		9,052)
SHAREHOLDERS' EQUITY	(15)	99,051,498		109,805,459
Provisions	(14)	2,588,242		2,371,370
Deferred tax liabilities	(6)	15,122,855		15,798,928
Post employment benefits	(15)	3,435,116		3,551,239
Long term financial liabilities	(16)	144,413,245		159,276,843
Long term not financial liabilities	(17)	1,400,373		1,634,539
NON-CURRENT LIABILITIES		166,959,831		182,632,919
Trade payables	(18)	83,248,657	378,572	88,596,138	131,362
Tax payables	(19)	4,080,493		4,385,845
Derivate liabilities	(10)			173,473
Short term financial liabilities	(20)	116,444,238		94,204,084
Other liabilities	(21)	20,143,799		19,497,967
CURRENT LIABILITIES		223,917,187		206,857,507
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		489,928,516		499,295,885

ATTACHMENT II

Consolidated Income Statement with related parties

Pursuant to Consob Resolution N. 15519 of July 27, 2006

(Values in units of EUR)	Notes	15t Half	of which 15t Half 2022		of which
		2023
REVENUES FROM SALES AND SERVICES	(22)	162,874,318	78,750	176,506,070	70,786
Other revenues and income	(23)	5,694,778		4,249,458
TOTAL REVENUES		168,569,096		180,755,528
Changes in inventory		10,069,166		24,302,020
Costs of raw materials, cons. and goods for resale	(24)	70,732,128)		89,843,096)
Costs of services	(25)	55,412,794)	500,000)	53,201,959)	500,000)
Costs for use of third parties assets	(26)	3,391,993)	83,962	4,014,367)	120,602
l abour costs	(27)	36,867,999)		34,399,226)
Other operating expenses	(28)	3,734,805)		2,711,399
Amortisation, write-downs and provisions	(29)	16,368,874)		13,919,428)
Financial income/(expenses)	(30)	4,906,106)		1,300,337)	62,859
PROFIT / LOSS BEFORE TAXES		( 12,776,437)		5,661,736
Income taxes	(31)	1,174,511		2,795,167)
NET PROFIT / LOSS		( 11,601,926)		2,866,569
(Profit)/loss attributable to minority shareholders		50,052)
NET PROFIT / LOSS FOR THE GROUP		( 11,651,978)		2,866,569

ATTACHMENT III

Consolidated Cash Flow Statement with related parties

Pursuant to Consob Resolution N. 15519 of July 27, 2006

(Values in thousands of EUR)	Notes	18t Half	of which	15t Half	of which
		2023		2022
Opening balance		21,658		31,307
Profit / loss before taxes		12,776)	505)	5,662	487
Amortisation / write-downs		16,369		13,920
Accrual (+)/availment (-) of long term provisions and post employment bene		101		30)
Paid income taxes		440)		(2,475)
Financial income (-) and financial charges (+)		4,906		1,300
Change in operating assets and liabilities		3,525)	172	16,261)	( 109
Cash flow (absorbed) / generated by operating activity	(33)	4,635		2,116
Increase (-) / decrease (+) in intangible fixed assets		(527)		( 750)
Increase (-)/ decrease (+) in tangible fixed assets		2,322)		3,535)
Increase (-) / decrease (+) in right-of-use assets		4,567)		8,827)
Investments and write-downs (-)/ Disinvestments and revaluations (+)		2)
Cash flow (absorbed) / generated by investing activity	(34)	( 7,418)		( 13,112)
Other variations in shareholders' equity		848		(1,051)
Dividends paid
Proceeds (+)/repayment (-) of financial payments		11,443		4,455	263)
Proceeds (+)/ repayment (-) of lease payments		4,067)		1,666
Increase (-) / decrease (+) in long term financial receivables		199		1,111)
Financial income (+) and financial charges (-)		4,906)		( 1,300)
Cash flow (absorbed) / generated by financing activity	(32)	3,517		2,659
Closing balance		22,392		22,970

Attestation of the Half Year condensed financial statements pursuant to art.81ter of Consob Regulation N. 11971 of May 14, 1999, and subsequent amendments and additions

The undersigned Simone Badioli as chief executive officer and Matteo Scarpellini as manager responsible for preparing Aeffe S.p.A.'s financial reports, pursuant to the provisions of Article 154-bis, clauses 3 and 4, of Legislative Decree n. 58 of 1998 ,hereby attest:

the adequacy with respect to the Company structure and
. the effective application,

of the administrative and accounting procedures applied in preparation of the Half year condensed financial statements at June 30, 2023.

The undersigned moreover attest that:

The Half Year condensed financial statements:

· have been prepared in accordance with International Financial Reporting Standards, as endorsed by the European Union through Regulation (EC) 1606/2002 of the European Parliament and Counsel, dated July 19, 2002;
correspond to the amounts shown in the Company's accounts, books and records; ●
provide a fair and correct representation of the financial conditions, results of operations and cash flows of the ● Company and its consolidated subsidiaries.

The interim management report contains a reliable analysis of important events which took place during the first six months of the current fiscal year and their impact on the half-year condensed financial statements, together with a description of the principal risks and uncertainties for the remaining six months of the interim management report also contains information concerning related party transactions.

July 28, 2023

Chief executive officer

Simone Badioli

Manager responsible for preparing Company's financial reports

Matteo Scarpellini

Report on review of the half-yearly condensed consolidated financial statements

Ria Grant Thornton S.p.A. Via San Donato, 197 40127 Bologna

T +39 051 6045911

To the Shareholders of Aeffe S.p.A.

Introduction

We have reviewed the accompanying half-yearly condensed consolidated financial statements as of June 30, 2023, consisting of the consolidated statement of financial position, consolidated income statement, statement of comprehensive income, consolidated statement of cash flows, statement of changes in equity and related explanatory notes, of the Aeffe Group. The Directors are responsible for the preparation of the half-yearly condensed consolidated financial statements in accordance with the International Financial Accounting Standards applicable to interim financial reporting (IAS 34) as adopted by the European Union. Our responsibility is to express a conclusion on the half-yearly condensed consolidated financial statements based on our review.

Scope of Review

We conducted our review in accordance with review standard recommended by Consob (the Italian Stock Exchange Regulatory Agency) in its Resolution no. 10867 of July 31, 1997. A review of the half-yearly financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA Italia) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the half-yearly condensed consolidated financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying halfyearly condensed consolidated financial statements of the Aeffe Group as of June 30, 2023, are not prepared, in all material respects, in accordance with the International Financial Accounting Standards applicable to interim financial reporting (IAS 34) as adopted by the European Union.

Bologna, July 28, 2023

Ria Grant Thornton S.p.A. Signed by

Marco Bassi Partner

This report has been translated into the English language from the original, which was issued in Italian, solely for the convenience of international.

Società di revisione ed organizzazione contabile Sede Legale: Via Melchiorre Gioia n .8 – 20124 Milano - Iscrizione al registro delle imprese di Milano Codice Fiscale e P.IVA n.02342440399 - R.E.A. 1965420. Registro dei revisori legali n.157902 già iscritta all'Albo Speciale delle società di revisione tenuto dalla CONSOB al n. 49 Capitale Sociale: € 1.832.610,00 interamente versato Uffici: Ancona-Bari-Bologna-Cagliari-Firenze-Milano-Napoli-Padova-Palermo-Perugia-Rimini-Roma-Torino-Trento-Treviso. Grant Thornton refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Ria Grant Thornton spa is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another's acts or omission

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Aeffe

4140_ir_2023-08-04_720abbea-ddd8-4c7d-90ba-02436e4943e6.pdf

CORPORATE BOARDS OF THE PARENT COMPANY

Chairman

Deputy Chairman

Directors

President

Alternate Auditors

HEADQUARTERS

AEFFE

MOSCHINO

POLLINI

SHOWROOMS

MILAN

MILAN

NEW YORK

LONDRA

PARIS

MOSCHINO

ALBERTA FERRETTI

POLLINI

AEFFE GROUP

INTERIM MANAGEMENT REPORT

1. SUMMARY OF THE GROUP'S KEY ACTIVITIES

Prêt-a-porter Division

Aeffe

Moschino

Aeffe USA

Aeffe Retail

Aeffe France

Aeffe Germany

Aeffe Spagna

Aeffe Netherland

Moschino Korea

Fashoff UK

Moschino France

Moschino USA

Moschino Asia Pacific

Moschino Shanghai

Moschino Kids

Footwear and leather goods Division

Pollini

Pollini Retail

Pollini Suisse

2.

SALES

Sales by brand

Sales by geographical area

Sales by distribution channel

LABOUR COSTS

GROSS OPERATING MARGIN (EBITDA)

NET OPERATING PROFIT / LOSS (EBIT)

PROFIT / LOSS BEFORE TAXES

3.

NET INVESTED CAPITAL

NET WORKING CAPITAL

FIXED ASSETS

NET FINANCIAL POSITION

SHAREHOLDERS' EQUITY

4. RESEARCH & DEVELOPMENT ACTIVITIES

5. TRANSACTIONS BETWEEN GROUP COMPANIES AND WITH RELATED PARTIES

6. SIGNIFICANT EVENTS OF THE PERIOD

7.

8. YEAR

Half-year condensed financial statements at June 30, 2023

Financial statement

CONSOLIDATED BALANCE SHEET (*)

EMARKET

CONSOLIDATED CASH FLOW STATEMENT (*)

Explanatory notes

GENERAL INFORMATION

DECLARATION OF CONFORMITY AND REPORTING PRINCIPLES

CONSOLIDATION PRINCIPLES

Subsidiaries

Associates

SCOPE OF CONSOLIDATION

Notes (details of indirect shareholdings):

FOREIGN CURRENCIES

Functional and reporting currency