Basic Net SpA — Earnings Release 2022

Oct 27, 2022

PRESS RELEASE

BASICNET – 9M 2022 RESULTS: CONSOLIDATED REVENUES + 30.3%, EBITDA + 31.4%. GROWTH TREND CONFIRMED.

Turin, October 27, 2022. The Board of Directors of BasicNet S.p.A. has reviewed the Group performance as at September 30, 2022:

• aggregate sales of Group products by the Global Network of Euro 929.4 million, up 34.3% on 9M 2021, as follows:
  • − commercial licensees and direct sales of Euro 649.9 million (Euro 515.8 million in 9M 2021, +26.0%);
  • − productive licensees sales of Euro 279.5 million (Euro 176.1 million in 9M 2021, +58.7%).

Excellent performance in aggregate commercial sales: Asia and Oceania, accounting for 8.5% of aggregate sales, grew 64.2%, with the Middle East and Africa up 49.0% and the Americas by 34.8%. Europe, accounting for approximately 64.1% of aggregate sales, grew 17.0% on the same period of the previous year;

• consolidated revenues of Euro 282.6 million (Euro 216.9 million in 9M 2021, +30.3%), as follows:
  • − royalties from commercial and productive licensees: Euro 53.7 million (Euro 40.1 million in 9M 2021, +34.0%);
  • − direct sales: Euro 228.2 million (Euro 176.4 million in the same period of 2021, +29.4%);
• EBITDA: Euro 44.1 million (Euro 33.6 million in 9M 2021, +31.4%);
• EBIT: Euro 33.3 million (Euro 24.3 million in 9M 2021, +37.3%);
• Net financial position: Euro -144.6 million (Euro -61.7 million at December 31, 2021 and Euro 66.0 million at September 30, 2021). In the first 9 months of 2022, besides financing the robust commercial growth, the Group distributed dividends for Euro 6.1 million and purchased treasury shares for Euro 4.8 million. The Group also acquired full ownership of the company K-Way France for a consideration of Euro 33.4 million and invested Euro 7.8 million in the Real Estate sector.

Outlook

Based on the order portfolio and forecast royalties and sourcing commissions, a positive commercial trend is expected also for the current year. The core operating results are however subject to the evolution of the global macro-economic scenario, the consequent impacts on raw material costs, currency exchanges evolution and the geopolitical crises emerging globally.

BasicWelfare

In order to mitigate the effects of the rising cost of living and support the workforce and their families, an extraordinary welfare initiative, comparable to one month's salary and tailored in accordance with the specific rules of the relevant European countries, has been introduced. "The company is performing well in such a complex general environment and our very young, skilled and passionate team has full operating control - stated BasicNet's Chairman Marco Boglione. We are therefore pleased to announce this deserved recognition."

The Chief Executive Officer Federico Trono will present the 9M 2022 results during a video conference to be held on October 28 in English at 6PM.

To participate:

Microsoft Teams Meeting

Participate via computer or mobile app

Click here to attend the meeting

Alternatively, attend by calling (only audio)

+39 02 0062 4808,,896088974# Italy, Milan

Telephone ID conference: 896 088 974#

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

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

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

•	Commercial licensees or licensees:	independent business owners, granted licenses to distribute Group brand
		products in their respective regions.
•	Productive licensees or sourcing centers:	third-party firms to the Group. Their function is to manufacture and market merchandise and are located in various countries worldwide, depending on what type of goods they produce.
•	Commercial licencees and direct aggregate sales	sales by commercial licensees and the Group company license holders, recognised by the BasicNet Group to the "royalties and sourcing commissions" account of the income statement.
•	Productive licensee aggregate sales:	sales by productive licensees, recognised by the BasicNet Group to the "royalties and sourcing commissions" account of the income statement.
•	Consolidated Revenues	the sum of royalties, sourcing commissions and sales of the licensee company BasicItalia S.p.A. and its subsidiaries, in addition to the parent company BasicNet S.p.A
•	EBITDA:	"operating result" before "amortisation and depreciation".
•	EBIT:	"operating result".
•	Net financial position:	total of current and medium/long-term financial payables, less cash and cash

***

equivalents and other current financial assets.

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