Fope — Earnings Release 2022

Sep 30, 2022

THE BOARD OF DIRECTORS OF FOPE GROUP APPROVES THE RESULTS AT 30thJUNE, 2022

• Revenues: Euro 27.7 M, +89% (1H2021: Euro 14.6 M / 1H2019: Euro 15.5 M)
• EBITDA: Euro 6.6 M (1H2021: Euro 2.4 M / 1H2019: Euro 3.2 M)
• EBIT: Euro 5.7 M (1H2021: Euro 1.5 M / 1H2019: Euro 2.6 M)
• Net Profit: Euro 4.7 M (1H2021: Euro 1.0 M / 1H2019: Euro 1.9 M)
• Net Financial Position: Euro 0.2 M (FY2021: cash positive in the amount of Euro 1.9 M)
• Shareholders' Equity: Euro 27.5 M (FY2021: Euro 25.8 M)

Vicenza – September 30th, 2022

The Board of Directors of FOPE (FPE:IM), a leading Italian fine jewellery company listed on the Euronext Growth Milan segment of the Italian Stock Exchange, approved today the Consolidated Interim Financial Report at 30th June, 2022, subject to limited audit.

Diego Nardin, CEO of FOPE: "The first half of the year was characterised by a positive sales trend in the markets where the Group operates. The numbers that measure the Company's change and growth compared to the first half of 2021 indicate that this is not just a recovery in positions and sales volumes attributable to overcoming the limits imposed – total or partial – by the Covid-19 pandemic, but a phenomenon of solid success on the markets, interrupted by the pandemic and already resumed in the second half of last year. The growth has affected all markets, including countries that are dependent on tourist flows, and the collections presented at the beginning of the year, two of which feature new mesh styles developed by FOPE's technological production departments, saw great success with our dealers. At the end of the first half of 2022, we recorded a volume of confirmed orders in line with the previous months and, currently, there are no signs that might suggest significant changes in market behaviour until the end of 2022."

Consolidated highlights at 30 June 2022

Net revenues amounted to Euro 27.7 million: the figure shows growth of +89% compared to Euro 14.6 million recorded in 1H2021 and +78% compared to pre-Covid-19 results in 1H2019 (Euro 15.5 million). The increase in turnover is due to growth in sales volumes recorded on foreign markets (+87% compared to 1H2021) with a greater contribution to volumes and to Italy's performance (+107% compared to 1H2021).

EBITDA totalled Euro 6.6 million, showing strong growth on 1H2021 (Euro 2.4 million) and compared to the pre-pandemic situation, with Euro 3.2 million in 1H2019. The EBITDA margin is 24.0%, a clear improvement compared to 16.7% in 1H2021. Margins in line with budget levels were maintained on operating costs; structural operating costs did not change significantly as compared with the previous year.

EBIT stood at Euro 5.7 million, compared to Euro 1.5 million recorded in 1H2021 and to Euro 2.6 million in 1H2019, after amortisation/depreciation for Euro 0.9 million (Euro 0.9 million in 1H2021).

EBT amounted to Euro 5.7 million, compared to Euro 1.6 million in 1H2021 and Euro 2.4 million in 1H2019, after financial income for Euro 16 thousand (financial income for Euro 103 thousand in 1H2021).

Net profit stood at Euro 4.7 million, compared to Euro about 1.0 million in 1H2021 and to Euro 1.9 million in 1H2019, after tax for Euro 1.0 million (Euro 0.6 million in 1H2021).

Net Invested Capital, totalling Euro 27.6 million (Euro 24.0 million at 31/12/2021), consisted of Fixed Assets for Euro 12.6 million (Euro 12.8 million at 31/12/2021), Net Working Capital for Euro 18.9 million (Euro 14.0 million at 31/12/2021) and Provisions for Euro 3.8 million (Euro 2.8 million at 31/12/2021).

The Net Financial Position amounted to Euro 0.2 million, compared to cash positive NFP of Euro 1.9 million at 31/12/2021 and NFP of Euro 2.0 million at 30/06/2021. The change in the NFP was mainly affected by the reduction in cash due to the investment in raw materials and finished products made during the reference period. Furthermore, during the year, loans were repaid for Euro 2.34 million and new loans were taken out for Euro 2 million.

Shareholders' Equity stood at Euro 27.5 million (Euro 25.8 million at December 31th, 2021).

Significant subsequent events and outlook

There are no significant operational events to report after the close of the first half of 2022. Based on the expected data for FY2022, the Group estimates growing sales volumes and a profit for the current year, also supported by the existing order book. The results of the first months of the second half of 2022 confirm these forecasts and, consequently, the aforementioned positive expectations for the end of the year.

The press release is available on the websites www.fopegroup.com and

FOPE (FPE:IM; ISIN IT0005203424) is a historic Italian jewellery company established in Vicenza in 1929 and a leader in the fine jewellery market. With about 60 employees, and a strong international presence (about 90% of its revenues), FOPE pursues a strategic growth project based on expanding and consolidating the brand in the international luxury market by leveraging 4 competitive advantages: product quality, perfect combination of Made-in-Italy craftsmanship and technology, recognisable design, and longstanding customer relationships. FOPE operates globally through a well-established and select network of over 700 stores in 50 countries (with a direct presence in the US, Arab, and UK markets through the subsidiaries FOPE USA Inc., FOPE Services DMCC, and FOPE Jewellery Limited, respectively). The business model focuses on maintaining direct business relationships with multi-brand jewellery retailers (either independent or part of groups) that specialise in luxury products such as fine jewellery and watches. FOPE does not work with intermediaries: instead, it enters into direct partnerships that ensure the loyalty and reliability of the customer/retailer as well as an outstanding after-sale service. In 2015, the Company opened its first mono-brand store in Venice's Piazza San Marco and in 2019 a flagship boutique in the prestigious Old Bond Street in London. The entire production cycle—from prototyping to the shipping of finished jewels to over 50 countries— takes place inside the headquarters in Vicenza. FOPE's investments in R&D have led to an extremely high level of standardisation and automation, with proprietary technology that allows to optimise processes and times in order to deliver products of world-class quality. FOPE's jewels range from timeless classics featuring the iconic Novecento mesh to the more recent Flex'it lines, which include the original bracelets made flexible thanks to a patented system of tiny gold springs embedded in the mesh—strikingly elegant collections that always stand out in terms of comfort and portability. FOPE has obtained the voluntary TF (Traceability & Fashion) certification and is a certified member of the Responsible Jewellery Council.

CONTACTS

FOPE INVESTOR RELATIONS MANAGER Diego Nardin, inv.relations@fope.com│ T +39 0444 286911

IR TOP CONSULTING INVESTOR RELATIONS Maria Antonietta Pireddu, m.pireddu@irtop.com │ T +39 0245473884 FINANCIAL MEDIA RELATIONS Domenico Gentile, d.gentile@irtop.com │ Antonio Buozzi, a.buozzi@irtop.com | T +39 0245473884

INTEGRAE SIM EURONEXT GROWTH ADVISOR | T +39 02 96846864 │ Piazza Castello 24, Milan

CONSOLIDATED INCOME STATEMENT

Euro	30/06/2022	30/06/2021	Change
Revenue	27,664,613	14,620,749	13,043,865
Other revenue and income	200,730	193,334	7,396
External costs	19,059,982	10,676,144	8,383,837
Added value	8,805,361	4,137,939	4,667,422
Personnel costs	2,156,568	1,699,511	457,056
EBITDA	6,648,793	2,438,428	4,210,366
Depreciation and amortisation	938,356	940,482	(2,126)
EBIT	5,710,437	1,497,946	4,212,492
Financial income and charges	16,022	102,608	(86,586)
Pre-tax profit	5,726,459	1,600,554	4,125,904
Earnings before Tax	1,025,970	603,249	422,721
Net profit	4,700,490	997,305	3,703,185

CONSOLIDATED BALANCE SHEET

Euro	30/06/2022	31/12/2021	Change
Net intangible fixed assets	3,004,711	3,113,533	(108,822)
Net tangible fixed assets	9,425,910	9,562,484	(136,574)
Holdings/equity and other financial fixed assets	148,926	128,541	20,385
Non-current assets	12,579,547	12,764,088	(184,540)
Warehouse stock	12,905,839	10,308,809	2,597,030
Trade receivables	13,690,209	9,324,585	4,365,624
Current receivables	1,726,159	1,261,176	464,983
Cash flow hedging op. cr. position	1,154,953	794,993	359,960
Short-term assets for the year	29,477,160	21,730,033	7,747,127
Trade payables	5,573,141	4,457,257	1,115,885
Current liabilities	5,043,168	3,313,533	1,729,636
Short-term liabilities for the year	10,616,310	7,770,789	2,845,520
Net working capital	18,860,851	13,959,243	4,901,607
Severance pay fund	(1,086,617)	(1,006,788)	(79,829)
End-of-mandate indemnity fund and other funds	(1,973,153)	(1,727,961)	(245,193)
Expected cash flow hedging op. fund	(733,173)	(21,931)	(711,242)
Provisions for risks and non-current charges	(3,792,944)	(2,756,680)	(1,036,264)
Total assets	27,647,454	23,966,651	3,680,803
Share capital and equity reserve	(27,158,978)	(25,285,252)	(1,873,726)
Expected cash flow hedging op. reserve	(295,617)	(556,610)	260,993
Shareholders' equity	(27,454,595)	(25,841,862)	(1,612,733)
Medium to long-term financial position	(5,235,156)	(5,002,537)	(232,619)
Short-term financial position	5,042,297	6,877,748	(1,835,450)
Net financial position	(192,859)	1,875,211	(2,068,070)
Equity and net financial position	27,647,454	23,966,651	3,680,803

CONSOLIDATED NET FINANCIAL POSITION

Euro	30/06/2022	31/12/2021	Change
NET position short Bank reports and cash values	8,822,626	11,984,227	(3,161,601)
Convertible bond (POC)	0	0	0
Short-term financial position	(3,780,329)	(5,106,480)	1,326,151
Net short-term financial position	5,042,297	6,877,747	(1,835,450)
Convertible bond (POC)	0	0	0
Medium to long-term financial position	(5,235,156)	(5,002,537)	(232,619)
Net financial position	(192,859)	1,875,210	(2,068,069)

CONSOLIDATED CASH FLOW STATEMENT

Euro	30/06/2022	31/12/2021	Change
Profit for the year	4,700,489	5,029,555	(329,066)
Portion of amortisation	938,356	2,006,715	(1,068,359)
Change in severance pay and end-of-mandate indemnity funds	285,016	55,577	229,439
Gross self-financing	5,923,861	7,091,847	(1,167,986)
Change in trade receivables	(4,387,528)	(3,713,894)	(673,634)
Change in other short-term receivables	(464,984)	(344,788)	(120,196)
Change in inventories	(2,597,030)	(1,882,426)	(714,604)
Change in short-term payables	2,907,429	4,669,794	(1,762,365)
Changes in net working capital	(4,542,113)	(1,271,314)	(3,270,799)
Cash flow generated by operations	1,381,748	5,820,533	(4,438,785)
Change tangible and intangible fixed assets	(692,960)	(1,040,204)	347,244
Change financial fixed assets	(20,385)	(22,543)	2,158
M/L term financing reimbursement	(2,343,530)	(3,784,980)	1,441,450
Uses of financing	(3,056,875)	(4,847,727)	1,790,852
Financing acquisition	2,000,000	2,000,000	0
Convertible bonds issue	0	(206,400)	206,400
Changes shareholders'equity reserve	(2,826,764)	(267,723)	(2,559,041)
Sources of financing	(826,764)	1,525,877	(2,352,641)
Cha. expected cash flow hedging op. cr. pos.	(359,960)	(375,061)	15,101
Cha. expected cash flow hedging op. fund	711,242	(330,590)	1,041,832
Cha. expected cash flow hedging op. reserve	(260,993)	506,276	(767,269)
Cha. expected cash flow hedging op. positions	90,289	(199,375)	289,664
Net cash flow	(2,411,602)	2,299,308	(4,710,910)
Net position banking relationships as at 30/06/2022	8,822,626	0	0
Net position banking relationships as at 31/12/2021	11,234,228	11,234,228	0
Net position banking relationship as 30/06/2018		8,934,920
Net position banking relationships as at 31/12/2020	0	0	0
Change net financial position	(2,411,602)	2,299,308	(4,710,910)