PRESS RELEASE: BASICNET BOD APPROVES 2024 SEPARATE FINANCIAL STATEMENTS AND CONSOLIDATED FINANCIAL STATEMENTS. RESULTS PRESENTED ON FEBRUARY 12 CONFIRMED. PROPOSED DIVIDEND OF EURO 0.16 PER SHARE.

Turin, March 7, 2025. The Board of Directors of BasicNet S.p.A. has approved the Consolidated Financial Statements and the 2024 Separate Financial Statements, calling the Ordinary Shareholders' AGM for April 17 in single call.

Consolidated results presented on February 12 confirmed:

consolidated revenues of Euro 409.2 million (Euro 396.8 million in 2023, +3.1%), which include: − direct sales: Euro 346.8 million (Euro 332.8 million in 2023, +4.2%);
- − royalties from commercial and productive licensees: Euro 60.9 million (Euro 62.3 million in 2023, -2.2%);
EBITDA: Euro 61.1 million (Euro 58.1 million in 2023, +5.0%);
EBIT: Euro 42.1 million (Euro 41.1 million in 2023, +2.5%);
net profit of Euro 25.3 million (Euro 24.4 million in 2023, +3.6%);
net financial position with banks is -Euro 90.8 million, improving compared to -Euro 92.6 million at December 31, 2023; net financial position: -Euro 142.0 million (-Euro 139.1 million at December 31, 2023).

FINANCIAL STATEMENTS OF THE PARENT COMPANY BASICNET S.p.A.

The Board of Directors also approved the 2024 separate financial statements of BasicNet S.p.A., which report a net profit of Euro 8.0 million (Euro 20.1 million in 2023, which included the reversal of impairment losses on investments for Euro 25.6 million).

DIVIDEND PROPOSED

The Board of Directors of BasicNet S.p.A proposes to the Shareholders' AGM to distribute a dividend of Euro 0.16 per share in circulation, for a total value of approx. Euro 7.5 million.

The proposed dividend reflects a pay-out ratio of 29.7% on the consolidated net profit, substantially in line with previous years.

The amount will be paid from April 30, 2025, with date of entitlement to receive the amount (record date) of April 29, 2025 and coupon date (No. 18) of April 28, 2025.

OUTLOOK

Based on the order portfolio and the continued investment in enhancing the Brands, the Group expects to continue on its development trajectory, further consolidating its market positioning.

CALLING OF THE ORDINARY SHAREHOLDERS' AGM

The Board of Directors called the Shareholders' AGM for April 17, 2025 at 11AM in single call to consider the following:

approval of the 2024 Separate Financial Statements;
approval of the proposal for the allocation of the net profit and the distribution of a dividend;
resolutions relating to the First Section and the Second Section of the Remuneration Report as per Article 123-ter, paragraphs 3-bis and 3-ter and paragraph 6 of Legislative Decree No. 58/1998;
appointment of the corporate boards;
appointment of an independent audit firm for the fiscal years 2026-2034 and assurance engagement concerning consolidated sustainability reporting for the fiscal years 2026-2028;
proposal to purchase and dispose of treasury shares.

TREASURY SHARES

The authorisation proposal, as detailed in the illustrative report to the Shareholders' Meeting and which shall be made available in accordance within the time limits established by law, concerns the purchase of a maximum number of shares which, taking into account the treasury shares already held in portfolio, does not exceed the legal limits and seeks to provide the Company with a strategic financial instrument, among other purposes, to support future transactions to increase the value of the Company, in addition to the allocation of the shares to service the incentive and retention plan.

Purchases may be made on one or more occasions, on regulated markets in accordance with the applicable law. The authorisation is requested until the date for the Shareholders' AGM for the approval of the 2025 Financial Statements.

BasicNet today holds a total of 7,033,000 treasury shares (equal to 13.02% of the Share Capital), for an investment of over Euro 32 million.

The Chief Executive Officer Federico Trono will present to the market the 2024 results during a video conference call this afternoon, March 7, 2025, at 6PM CET. To join the video conference call (to be held in English), click on:

Microsoft Teams Meeting

Participate via computer or mobile app or remote device

Participate at the meeting now

Meeting ID: 362 836 927 358 Passcode: vN6Sm9cn

Alternatively, attend by calling (only audio) +39 02 0062 4808,,184830044# Italy, Milan Telephone ID conference: 184 830 044#

The presentation may be downloaded from the website www.BasicNet.com, from the section: "Financial data/Other information and presentations" shortly before the video conference, at the following link: www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g&language=IT

In relation to the "alternative performance indicators", as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the indicators used in this press release, as well as their reconciliation with the financial statement items:

Commercial licensees or licensees	independent business owners, granted licenses to distribute Group brands products in their respective regions.
Productive licensees or sourcing centers	third-party firms to the Group. Their function is to manufacture and market products and are located in various countries worldwide, depending on what type of goods they produce.
Commercial licensees and direct aggregate sales	sales by commercial licensees, recognised by the BasicNet Group to the royalties account and the sales by the Group companies.
Productive licensees aggregate sales	sales by productive licensees, recognised by the BasicNet Group to the "royalties and sourcing commissions" account of the income statement.
Brands aggregate sales	is the sum of "Commercial licensees and direct aggregate sales" and "Aggregate sales of productive licensees"
Consolidated revenues	the sum of royalties, sourcing commissions and sales of the BasicNet Group companies and real estate revenues from third parties.
EBITDA	"operating result" before "amortisation and depreciation".
EBIT	"operating result".
Contribution margin on direct sales	"gross margin".
Debt/equity ratio	this is an indicator of the financial structure of the balance sheet and is calculated as the ratio of financial debt to shareholders' equity.
Net financial position	total of current and medium/long-term financial payables, less cash and cash equivalents and other current financial assets.
Net financial position with banks	the Net financial position, net of payables for rights-of-use and payables for the acquisition of company shares.
Earnings per share	calculated as required by IFRS on the basis of the weighted average number of shares in circulation in the year.

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

The financial statements are attached.

Financial statements (audit not yet complete)

CONSOLIDATED FINANCIAL STATEMENTS

	FY 2024		FY 2023		Change
		%		%		%
Consolidated direct sales Cost of sales	346,802 (194,145)	100.00 (55.98)	332,758 (187,407)	100.00 (56.32)	14,044 (6,738)	4.22 (3.60)
GROSS MARGIN	152,657	44.02	145,351	43.68	7,306	5.03
Royalties and sourcing commissions Other income Sponsorship and media costs Personnel costs Selling, general and administrative costs, royalties expenses Amortisation & depreciation EBIT	60,882 17,622 (43,618) (49,151) (77,323) (18,927) 42,143	17.56 5.08 (12.58) (14.17) (22.30) (5.46) 12.15	62,273 10,888 (39,214) (45,074) (76,087) (17,039) 41,099	18.71 3.27 (11.78) (13.55) (22.87) (5.12) 12.35	(1,391) 6,734 (4,404) (4,077) (1,236) (1,888) 1,044	(2.23) 61.85 (11.23) (9.05) (1.62) (11.08) 2.54
Net financial income (charges) Management of equity investments	(5,421) (7)	(1.56) 0.00	(8,483) (21)	(2.55) (0.01)	3,062 14	36.10 0.00
PROFIT BEFORE TAXES	36,715	10.59	32,595	9.80	4,120	12.64
Income taxes	(11,451)	(3.30)	(8,218)	(2.47)	(3,233)	(39.33)
NET PROFIT FOR THE YEAR	25,264	7.28	24,376	7.33	888	3.64
Earnings per share: basic - diluted -	0.5354 0.5354		0.4912 0.4912	0.044 0.044		9.00 9.00

BASICNET GROUP CONSOLIDATED BALANCE SHEET

	December 31, 2024	December 31, 2023
Intangible assets	71,834	69,290
Rights-of-use	41,871	35,900
Goodwill	43,719	43,206
Property, plant and equipment	56,763	55,371
Equity invest. & other financial assets	1,980	955
Interests in joint ventures	175	182
Deferred tax assets	6,008	8,203
Total non-current assets	222,350	213,108
Net inventories	108,357	112,239
Trade receivables	84,073	76,329
Other current assets	10,985	14,686
Prepayments	10,645	11,499
Cash and cash equivalents	28,195	31,962
Derivative financial instruments	3,101	930
Total current assets	245,356	247,644

TOTAL ASSETS	467,706	460,752

	December 31, 2024	December 31, 2023
Share capital	31,717	31,717
Reserve for treasury shares in portfolio	(30,861)	(16,442)
Other reserves	144,226	125,137
Net Profit	25,264	24,376
TOTAL SHAREHOLDERS' EQUITY	170,346	164,787
Provisions for risks and charges	2,440	4,337
Loans	28,206	39,214
Payables for rights-of-use	43,080	36,778
Other financial payables	6,432	8,146
Employee and Director benefits	4,443	3,870
Deferred tax liabilities	9,507	7,690
Other non-current liabilities	1,684	2,225
Total non-current liabilities	95,791	102,259
Bank payables	90,780	85,351
Trade payables	82,294	76,959
Tax payables	5,254	7,788
Other current liabilities	14,546	13,284
Accrued expenses	8,648	10,055
Derivative financial instruments	48	270
Total current liabilities	201,569	193,706
TOTAL LIABILITIES	297,360	295,965

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	467,706	460,752

CONSOLIDATED CASH FLOW STATEMENT

		December 31, 2024	December 31, 2023
	A) OPENING SHORT-TERM NET BANK DEBT	(39,059)	(26,438)
	B) CASH FLOW FROM OPERATING ACTIVITIES
	Net profit/(loss) Amortisation & depreciation	25,264 18,927	24,376 17,039
	Management of equity investments	7	21
	Changes in working capital:
	(Increase) decrease in trade receivables	(7,743)	4,558
	(Increase) decrease in inventories	3,883	12,744
	(Increase) decrease in other receivables	6,696	(5,022)
	. Increase (decrease) in trade payables	5,335	(22,573)
	. Increase (decrease) in other payables Net changes in employee and director benefits	(3,879) 573	8,132 592
	Others, net	122 49,184	(286) 39,582

	C) CASH FLOW FROM INVESTING ACTIVITIES
	Investments in fixed assets: - tangible assets - intangible assets - financial assets	(6,985) (7,841) (1,017)	(4,054) (6,853) (159)
	- acquisition K-Way France Realisable value for fixed asset disposals: - intangible assets	(1,657) 809 (16,691)	(7,343) 54 (18,355)
D)	CASH FLOW FROM FINANCING ACTIVITIES

	New medium/long term loans Loan repayments Repayment of loans for rights-of-use Treasury share purchases	206 (14,330) (8,841) (14,419)	900 (14,790) (8,470) (2,488)
	Dividend payments	(7,421)	(8,999)
		(44,803)	(33,847)
E)	CASH FLOW IN THE YEAR	(12,311)	(12,620)
F)	CLOSING SHORT-TERM BANK DEBT	(51,370)	(39,059)

BASICNET GROUP SUMMARY NET FINANCIAL POSITION

	December 31, 2024	December 31, 2023	Change

Net financial position with banks – Short-term	(62,585)	(53,390)	(9,195)
Financial payables – Medium-term	(27,922)	(39,136)	11,214
Finance leases	(284)	(77)	(206)
Net financial position with banks	(90,791)	(92,603)	1,813
Long-term payables for the acquisition of shares	(8,081)	(9,738)	1,657
Payables for rights-of-use	(43,080)	(36,778)	(6,302)
Total net financial position	(141,952)	(139,119)	(2,833)
Net Debt/Equity ratio (Net financial position/Shareholders' equity)	0.83	0.84	(0.01)

BASICNET S.P.A. FINANCIAL STATEMENTS

BASICNET S.p.A. – INCOME STATEMENT

(In Euro)

	FY 2024	FY 2023	Change
Services to group companies	13,856,409	14,634,685	(778,276)
Royalties and sourcing commissions	8,786,030	2,197,639	6,588,391
Direct sales	12,350	160,545	(148,195)
Cost of sales	(183,136)	(244,283)	61,147
Other income	1,194,077	1,147,676	46,402
Sponsorship and media costs	(250,704)	(268,307)	17,603
Personnel costs	(9,182,521)	(11,075,046)	1,892,524
Selling, general and administrative costs,
royalties expenses	(13,019,600)	(13,197,171)	177,572
Amortisation & depreciation	(4,021,212)	(3,967,682)	(53,530)
EBIT	(2,808,307)	(10,611,945)	(7,803,638)
Net financial income (charges)	(620,780)	(208,387)	(412,393)
Dividends	10,568,074	3,000,000	7,568,074
Investment income (charges)	-	25,578,604	(25,578,604)
PROFIT BEFORE TAXES	7,138,987	17,758,272	(10,619,285)
Income taxes	820,448	2,318,741	(1,498,293)
NET PROFIT FOR THE YEAR	7,959,435	20,077,014	(12,117,579)

BASICNET S.p.A. – BALANCE SHEET

(In Euro)

	December 31, 2024	December 31, 2023
Intangible assets	4,816,729	4,227,329
Rights-of-use	2,401,035	3,564,117
Plant, machinery and other assets	1,991,752	1,822,148
Equity invest. & other financial assets	138,322,357	137,834,060
Deferred tax assets	350,894	1,403,510
Total non-current assets	147,882,767	148,851,163
Net inventories	-	-
Trade receivables	3,689,777	2,154,889
Other current assets	46,553,851	75,150,808
Prepayments	731,832	652,806
Cash and cash equivalents	1,213,280	1,525,834
Total current assets	52,188,740	79,484,336
TOTAL ASSETS	200,071,507	228,335,499

	December 31, 2024	December 31, 2023
Share capital	31,716,673	31,716,673
Treasury shares	(30,861,084)	(16,442,464)
Other reserves	132,662,588	120,048,939
Net Profit	7,959,435	20,077,014
TOTAL SHAREHOLDERS' EQUITY	141,477,612	155,400,162
Provision for risks and charges	45,569	45,569
Loans	1,314,389	2,426,994
Payables for rights-of-use	2,498,453	3,670,479
Employee and Director benefits	2,306,980	1,750,460
Total non-current liabilities	6,165,392	7,893,502
Bank payables	35,903,328	26,152,370
Trade payables	3,762,896	3,983,092
Tax payables	1,602,700	3,554,607
Other current liabilities	11,109,663	31,276,550
Accrued expenses	49,916	75,217
Total current liabilities	52,428,504	65,041,835
TOTAL LIABILITIES	58,593,895	72,935,337
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	200,071,507	228,335,499

BASICNET S.p.A. – CASH FLOW STATEMENT