Brunello Cucinelli — Earnings Release 2024

Aug 28, 2024

August 28, 2024

1H 24 Results

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closed the first half of 2024 with particularly pleasing results. Sales were excellent, profits and balanced, the brand is fit and healthy, and the feedback on our product offering was We completed the 2024 summer sales very successfully, and the winter sales were offgood start. All of this leads us to confirm our guidance of a revenue growth for FY 2024 of with healthy and sustainable profits.

are also particularly pleased with the presentation to the world press of our new company websitein Milan, after three years of work. This site was built together with Artificial Intelligence. a website without pages, where the content flows and combines in front of the visitor, thankstechnology that seeks to understand and follow the users' intent, creating what they see on the have named this technology Solomei AI. We believe this new website is truly very special, also endorsement we have received from our friends in the AI world.

We positivefavourable.very +10%,We July deviseda We to theB. often prestigiousand This men'sconvictionour

Furthermore, I am deeply grateful and moved to announce that I will be presented with the "WWD Fairchild Honor" next October in New York, in memory of the legendary publisher of the referred to as the "Bible of global fashion." I am deeply honoured to be the recipient of award, which I consider a tribute to the dignity of work, to my people, their creative industrious nature, as well as to our Umbrian land and its spirituality.

new recognition and the excellent results of the Spring-Summer 2025 sales campaigns – withalready completed and the women's soon to conclude – allow us to reaffirm with confidence our guidance of equally beautiful growth for 2025, around +10%, as well as the plan to turnover by 2030.

Brunello Cucinelli

1H 2024 Financials Highlights

REVENUES

€620.7 mln +14.1% +14.7% cost. curr

EBIT

€104.6 mln +19.3% 16.9% on sales (vs. 16.1% last year)

RETAIL

+14.7%

63.7% on sales

WHOLESALE

+13.1% 36.3% on sales

NET PROFIT €66.1 mln +31.1%* 10.6% on sales

• Compared with Net Profit as of 30.06.23 sterilized from an extraordinary capital gain reported last year

EUROPE

+9.0% 35.6% on sales ASIA

+14.3% 28.0% on sales

AMERICAS

+19.4% 36.4% on sales

CAPEX

€44.8 mln

NET FINANCIAL POSITION* €68.7 mln (€ 38.6 mln as of June '23)

* Lease liabilities are excluded

1H 24 – Business Update

	1H 23	1H 24	YoY % Chg
Net Revenues	543.9	620.7	+14.1%
			Constant exchange rates +14.7%
Italy	60.9	68.1	+11.8%
Europe (excl. Italy)	141.9	153.0	+7.8%
Total Europe	202.8	221.1	+9.0%
Americas	189.0	225.6	+19.4%
Asia	152.1	174.0	+14.3%

EUROPE

SS 25 collection presentation reported very positive comments from specialized press and multibrand clients, which makes us decidedly optimistic about the closing of order intake

Strength of upper end of the luxury segment demand within all markets in Europe; constant presence of the local customer and tourism, both American and Asian, distributed as much in the main luxury capitals as in the most exclusive resort locations

AMERICAS

The trends experienced during the period were very positive in the entire North American area; confirmation of the growing demand for exclusive products of high quality and very high craftsmanship

Positive trend in the main cities but also in resorts and 2 nd tier cities; growth of clients within the exclusive Luxury Departments is particularly remarkable in the latter

ASIA

Solid results in all areas, including China, Japan, South Korea and the Middle East; ongoing sales growth trend in China, showing an increasing relevance for our Casa di Moda

Growing Chinese customer loyalty to the taste and brand identity, identifying the Brunello Cucinelli brand as representative of the highest end of the market

Region Highlights

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	1H 23	1H 24	YoY % Chg
Net Revenues	543.9	620.7	+14.1%
Retail Channel	344.6	395.2	+14.7%
Wholesale Channel	199.3	225.5	+13.1%

Channel Highlights

The retail channel is experiencing fair and healthy growth on a like-for-like basis, with interesting results in all geographical areas

Nice growth in the second quarter confirming the increase in the 1 st quarter

Major opening in Miami Design District in May, the only new opening in 1 st half 2024

WHOLESALE CHANNEL

Very positive sales results for the entire semester; positive contribution in the second quarter from reassortments of the Spring-Summer 2024 collections

Favorable feedback from multibrand partners for the Fall-Winter 2024 season, with significant requests for delivery of winter garments

Very attractive initial sell-outs also highlight end-customer appreciation

The presentation of the Spring-Summer 2025 collection attracted very positive comments from the specialized press, which anticipated a very satisfying sales campaign for the wholesale channel

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Monobrand Network

RETAIL MONOBRAND

• boutiques as of 30 June 24 boutiques as of 31 December 23
• boutiques as of 30 June 23

WHOLESALE MONOBRAND boutiques as of 30 June 24 boutiques as of 31 December 23 boutiques as of 30 June 23

Human Artificial Intelligence: Brunello Cucinelli's new website

Brunello Cucinelli commented as follows:

"We have been working on this project for almost three years, withdedicated group of researchers from the fields of mathematics, engineering,art and philosophy. […. ]

As early as May 2019, we laid the foundations for a shared reflection ontopic with the world's leading AI experts thanks to the 'First Symposiumthe Soul and Economics of Solomeo'. Last May, we held the second of the Symposium, whose highlight was the Honorary Doctorate in Sciences awarded by our esteemed University of Perugia to my dear Reid Hoffman, a genius in AI. The guiding principle of our workHumanistic Artificial Intelligence has been and will continue to be the of a serene and hopeful attitude towards a technology that, I am certain,bring benefits to all humanity […. ]

My teacher Xenophanes reminds us: 'Surely the gods did not reveal all to mortals from the beginning, but over time, those who seek will find better.' I would like our young people, in their time, to confidently seek is better."

Presented in mid-July the new website based on Artificial Intelligence based on the Solomei AI platform New website resulting from the union of what human creativity can imagine and the great potential that artificial intelligence can offer The new website does away with the concept of pages and menus and hosts content that flows and combines freely in front of the visitor

Brand Image and Awards

"WWD John B. Fairchild Award 2024"

Brunello Cucinelli commented as follows:

"I am deeply honoured to receive such a prestigious award which Iconsider a tribute to the dignity of the work, to my people, to theircreative genius and their industrious effort, as well as to our Umbrianland and its spirituality.

The names of those who have been honoured with the "WWD John Fairchild Honor" before me only add to my debt of gratitude.

I am immensely grateful to my esteemed Jim Fallon, a great connoisseurof beauty who not only shines a light on our work, but also elevates thespirit of man.

I would like to dedicate a thought of sincere esteem to theextraordinary editorial and cultural experience that is WWD, whichshould also be credited for having made the taste and style of Made Italy fashion known in the United States and around the world.

Thank you, thank you from the bottom of my heart for this too, withthe hope that beauty can open up ever new horizons before us andlead us to peace between peoples"

On October 29th , Brunello Cucinelli will receive the "WWD John B. Fairchild Award" in New York during the Apparel and Retail CEO Summit.

The award has been given to many influential fashion personalities in the past, including Maria Grazia Chiuri, Ralph Lauren, Karl Lagerfeld, Leonard Lauder, Giorgio Armani, Miuccia Prada, and Tommy Hilfiger.""

Style and Recognition: the brand and the philosophy

DESIGNER OF THE YEAR AWARD

In September 2021, Brunello Cucinelli received the very important 'Designer of the Year' award from British GQ magazine in London

NEIMAN MARCUS FASHION AWARD

Prestigious "Neiman Marcus Fashion Award" that honors the figures in the world who have most influenced Fashion

PARTECIPATION AT G20 IN ROME

Speaker at the G20 in Rome on October 31st , 2021, with a testimony on Humanistic Capitalism and Human Sustainability

GQ DESIGNER OF THE YEAR 2023

Very important award in China for the values of high craftsmanship and dignity of manual labour, in the name of Italian genius and the values of Humanistic Capitalism

This prestigious award is in addition to the other beautiful ones given to Brunello Cucinelli over the past few years

1H 2024- Financials

	2023 1H	2024 1H	Ch %
Revenues	543 9	620 7	+ 14 1%
First Margin	389 0	462 2	+ 18 8%
%	71 5%	74 5%	+ 300 b .p.
SG&A	-234 2	-284 4	+ 21 4%
%	43 1%	45 8%	+ 270 b .p.
EBITDA	8 154	8 177	+ 14 8%
%	28 5%	28 6%	b + 10 .p.
D&A	-67 1	-73 2	+ 9 0%
%	12 3%	11 8%	- 50 b .p.		a minority stake in Lanificio Cariaggi to Chanel, on 23 May 2023
EBIT	87 7	104 6	+ 19 3%
%	16 1%	16 9%	b + 80 .p.
Financial Net Income (Expenses)	* -2 4	-9 3
EBT	85 3	95 3			1H 2023	1H 2024
Tax Rate	21 8%	30 6%
Net Income	66 7	66 1	- 0 9%	Net Income	50 4	66 1
	12 3%	10 6%	b - 170 .p.	%	9 3%	10 6%

			Ch %
Net Income	50 4	66 1	+ 31 1%
%	9 3%	10 6%	b + 130 .p.

Income Statement

€ mln

** EBT and Net Income as of 30 June '23 benefits from the important contribution of the non-recurring capital gain

* Including "(Gain)/Loss from Partecipations" equal to €17.6 million gain, mainly related the gain from the sale of part of the stake held in Lanificio Cariaggi to Chanel

1H 24 NET PROFIT increasing 31.1% with respect to last year's Net Profit sterilized from the effects of an extraordinary capital gain related the sale of a minority stake in Lanificio Cariaggi to Chanel, on 23 May 2023

Income Statement Highlights

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1H 24 showed excellent results in terms of both revenue growth and margins, with EBIT amounting to 104.6 million euros, up 19.3% from 87.7 million euros last year, with a margin of 16.9% compared to 16.1% as of June 30, 2023

First Margin Improvement from 71.5% to 74.5% last year, thanks to

• positive contribution of the sales mix (distribution channels, geographic areas and
• expansion of in-house production through the opening of production facilities for men's outerwear and tailored suits in Penne in Abruzzo in the second half of 2023 and recently in Gubbio in Umbria, balanced by higher operating costs, mainly personnel costs

Increase related expansion of in-house production, selected growth of the network, expansion of business activities, major consolidated investments in communication

Income Statement Highlights

€ mln

Total Net Financial Expense details

€ mln

* This item represents the ordinary and recurring financial component that includes payable and receivable interest, each determined based on the leasing liabilities and assets. The increase in this item, which went from €5.9 million as at 30 June 2023 to €9.2 million as at 30 June 2024, reflects the effect of new leases as well as the gradual increase in the level of interest rates.

** As of 30 June 2023, the balance of the item "(Gain)/Loss from Partecipations" amounted to €17.6 million gain, mainly due to the gain related the sale of part of the stake held in Lanificio Cariaggi to Chanel. Following this sale, our company share held in Cariaggi decreased from 43% to 24.5%

delta

				delta
charges/(income) Financial ordinary from operations	2 5		3 2	0 7
charges/(income) Financial from lease operations	5 9		9 2	3 3	*
charges/(income) Financial adjustment for derivatives value of fair to	2 2		0 9	-1 3
charges/(income) Financial related "recurring management"	10 6		13 2	2 6
losses/(gains) Foreign exchange on leases	6 7		-2 0	-8 7
losses/(gains) exchange Foreign	2 7		-0 2	-2 9
losses/(gains) Total Foreign exchange	9 4		-2 2	-11 6
(Gain)/Loss from Partecipations	-17 6		-1 7	15 9
Total financial net expense	2 4		9 3	6 9

Net Working Capital

20

INVENTORY

The incidence of inventory as of June 30, 2024 on rolling sales for the last 12 months was 28.1%, back to an ordinary level after the reduction in the previous periods (as of December 31, 2023, the incidence of inventory was 25.2%), mainly related to strong sales reported

* Other Credits/(Debts) trend mainly related to the balances of tax receivables and payables and to the fair value valuation onderivative instruments hedging currency risk

TRADE RECEIVABLES

Extremely healthy situation despite a major increase in wholesale channel revenues of +13.1 percent in the first half of 2024

TRADE PAYABLES

In the first half of 2024, the same payment terms to suppliers, collaborators and consultants were maintained

€ mln

	2023 1H	23 FY	2024 1H
Trade Receivables	75 2	78 2	83 3
Inventories	262 8	287 3	341 4
Trade Payables	-141 5	-166 2	-162 0
Trade Working Capital Net	196 4	199 2	262 8
Incidence on 12 months rolling Revenues	18.7%	17.5%	21.6%
Credits/(Debts) * Other	-21 6	-20 9	-62 2
Working Capital Net	174 8	178 3	200 6
Incidence on 12 months rolling Revenues	16.7%	15.7%	16.5%

"Commercial" investments dedicated to selected openings, major boutique expansions, dedicated spaces in Luxury Department Stores, renewal and expansion of our showrooms worldwide, support of development initiatives in multi-brand stores

"Others…" mainly dedicated to the renovation of production facilities, which we keep up to date, with constant attention to the presence of comfortable working environments, the constant updating of information systems, and the development of

€ mln

Doubling of the Solomeo factory

New plant that will rise in our valley, in a former industrial compendium that has been entirely reclaimed and redeveloped

Preserve the environment and protect the landscape, while fortifying the relationship with the community

New production facilities

Opening of new production facilities in the Italian territory for the production of men's outerwear and tailored suits, within districts of excellence in artisan tailoring:

• Penne in Abruzzo
• Gubbio in Umbria

New Industrial Projects

To guarantee production capacity for the next decade and accompanying the projected doubling of revenues in 2030

• ➢ welcoming new specialist figures in manufacturing excellence
• ➢ prerequisite to face the long-term balanced growth plan with integrity and solidity
• ➢ maintaining the essential traits that we believe distinguish us on the market
• ➢ great attention to quality, craftsmanship and taste

Characteristic Financial Indebtedness

The characteristic Net Financial Indebtedness amounted to €68.7 million, compared to the €38.6 million as of 30 June 2023

Solidity of Corporate Structure, supported by the positive economic performance in the last twelve months, even with the major investment plan in 1H 24 of 44.8 million euros and the payment of dividends totaling 66.1 million euros (compared with €48.1 million last year)

€ mln

* Net Financial Indebtedness including IFRS 16 amounted to €707.5 million as of 30 June '24, compared to the €580.0 million as of 30 June '23

Outlook

The high quality of the revenues in the first half of the year, the business performance, the very decent sales we are reporting, and the punctuality of shipments mean we can fully confirm our planned revenue growth for 2024 of approximately 10%, with healthy and balanced profits

The expected growth takes into account for the second part of the year the beautiful the beautiful growths already reported last year, and the decidedly favourable feedback from multi-brand partners for the Fall-Winter 2024 season, with significant requests for delivery of garments in the first part of 2024

The sales campaign for the Spring-Summer 2025 Men's collections is already completed with outstanding results, confirming the appreciation from the specialist press and multi-brand clients at the presentation in early June at Pitti Uomo in Florence and at the subsequent Milan Fashion Week With respect to the Spring-Summer 2025 Women's collections presented over the last few weeks, we highlight equally positive results in the order collection, which is close to completing, and particularly positive feedback regarding the style Considering portfolio orders, we can confirm healthy growth of approximately 10% again for 2025; for the long term, we reiterate our forecast of doubling 2023 turnover by 2030

Our plans are accompanied by a significant investment plan to support growth and to expand artisan production facilities, with increasing investments focusing on doubling the size of our Solomeo factory and on new manufacturing facilities in Italy, guaranteeing production capacity for the next decade

ANNEX

Detailed Income Statement

€ mln

	1H 2023	1H 2024
Revenues	543 9	620 7
Consumption Costs	(54 0)	(39 3)
Material Cost Raw	(81 4)	(89 7)
Change Inventories	27 4	50 4
Outsourced Manufacturing	(100 9)	(119 2)
First Margin	389 0	462 2
(excl ) Services Costs Out Manuf	(127 0)	(162 3)
Personnel costs	(93 3)	(113 2)
Other operating expenses	(13 6)	(10 6)
Other operating income	1 0	1 8
capitalized Cost	0 8	0 8
and other accrual Impairment of assets	(2 1)	(0 9)
EBITDA	154 8	177 8
D&A	(67 1)	(73 2)
EBIT	87 7	104 6
Financial expenses	(49 0)	(28 6)
Financial income	46 6	19 3
EBT	85 3	95 3
Income taxes	(18 6)	(29 2)
Tax rate	21 8%	30 6%
Net Income	66 7	66 1
Minority Interest	4 9	5 1
Group Net Profit	61 8	61 0

Detailed Balance Sheet & Cash Flow Statement							€ mln
	2023 1H	2024 1H	2023 FY		2023 1H	2024 1H	2023 FY
Trade receivables	75 2	83 3	78 2	Net Income	66 7	66 1	123 8
Inventories	262 8	341 4	287 3	D&A	1 67	73 2	138 8
(-) Trade payables	(141 5)	(162 0)	(166 2)	Ch and other In NWC	(54 2)	(37 1)	(53 6)
assets/(liabilities) Other current	(21 6)	(62 2)	(20 9)	Cash flow from operations	79 6	102 2	209 0
Working Capital Net	174 8	200 6	178 3	Tangible and intangible investments	(34 0)	(40 4)	(76 5)
Intangible assets	509 1	597 7	514 9	(investments)/divestments Other	24 8	(5 3)	23 7
Tangible assets	204 8	242 6	223 1	Cash flow from investments	(9 2)	(45 7)	(52 8)
Financial assets	34 9	38 7	35 8
Total Assets	748 9	879 0	773 8	Dividends	(48 1)	(66 1)	(53 1)
assets/(liabilities) Other	59 7	77 0	62 6	Share capital and reserves increase	(3 3)	(5 0)	(3 3)
Invested Capital Net	983 4	1 156 6 ,	1 014 7 ,	change financial debt Net in	(42 6)	(6 9)	(107 2)
				Total Cash Flow	(23 6)	(21 5)	(7 4)
(-) Cash & Cash equivalents	(94 3)	(91 6)	(110 8)
Short Debt term	189 1	174 9	186 5
Debt Long term	485 1	624 1	485 3
Financial Indebtedness	580 0	707 5	561 0
Shareholders Capital	13 6	13 6	13 6
Share-premium Reserve	57 9	57 9	57 9
Reserves	257 5	303 5	255 7
Group Net Profit	61 8	60 9	114 6
Group Equity	390 8	435 9	8 441
shareholders Minority	12 6	13 2	11 8
Total Equity	403 4	449 1	453 6
Total Funds	983 4	1 156 6 ,	1 014 70 ,

Board of Directors

Brunello Cucinelli	Excutive Chairman and Creative Director
Riccardo Stefanelli	C.E.O.
Luca Lisandroni	C.E.O.
Camilla Cucinelli	Vice Chairman
Carolina Cucinelli	Vice Chairman
Alessio Piastrelli	Director
Giovanna Manfredi	Director
Andrea Pontremoli	Director
Guido Barilla	Independent Director
Stefano Domenicali	Independent Director
Maria Cecilia La Manna	Independent Director
Ramin Arani	Independent Director
Chiara Dorigotti	Independent Director
Katia Riva	Independent Director

Investor Relations & Corporate Planning Director

Pietro Arnaboldi

mail: pietro.arnaboldi@brunellocucinelli.it

+39 075 6970079

Viale Parco dell'Industria, 5 - Solomeo (PG) - Italia

This presentation may contain forward looking statements which reflect Management's current views and estimates.

The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.

Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro.

The Manager in Charge of preparing the Corporate accounting documents, Moreno Ciarapica, declares pursuant to and to the effects of article 154-bis, paragraph 2 of Legislative Decree no. 58 of 1998 that the disclosures included in this release correspond to the balances on the books of account and the accounting records and entries.