Safilo Group — Earnings Release 2024

May 7, 2024

Q1 2024 TRADING UPDATE

MAY 7, 2024

This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events.

Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and facts, most of which being beyond the control of the Group. Therefore actual results could differ, even to a significant extent, with respect to those reported in the statements.

DISCLAIMER

"In a business environment which is still complex and uncertain, it was again a positive start to the year for our European business, where Carrera and David Beckham kept shining, while North America was affected by a subdued winter season for our sports business and a wholesale eyewear market still weak in the contemporary segment.

In the first quarter, our economic and financial performance was solid. We improved both our industrial and operating margins, and we maintained a good grip on cash flow.

We remain focused on the objectives of our medium-term strategy, enhancing the quality, uniqueness and innovation of our products and services, while solidifying the core assets of our business model." Angelo Trocchia, CEO

TOTAL SALES PERFORMANCE

Q1 202 4 277. 2 €M

- 3. 5 % reported, -1.8% @cFX

(including a reduction in sales resulting from the Jimmy Choo phase -out)

PERFORMANCE IN EUROPE

• France our most dynamic market. Very positive IPP channel in Germany and ongoing business progress in Poland and Turkey
• Carrera and David Beckham outperforming brands, up double digits
• Promising launch of new Etro eyewear collections

+ 3. 0% reported, +5.8%@cFX

125.3 €M Q1 2024

PERFORMANCE IN NORTH AMERICA

• Subdued winter season hitting Smith's business in physical sports shops
• Still weak market in the contemporary sunglass segment, and Jimmy Choo phase-out
• Blenders and Smith's DTC business very positive

-8. 2% reported, -7.2%@cFX 114.5 €M Q1 2024

• Positive performance in China, also supported by good results at the Shanghai fair held in March
• Smith continuing to outperform in Australia

PERFORMANCE IN ASIA PACIFIC

-1. 1% reported, +2.3%@cFX 11.9 €M Q1 2024

PERFORMANCE IN REST OF WORLD

• Different timing of some deliveries in Middle East and soft travel retail business in Latin America
• Carrera and Polaroid making nice progress in India

-11. 3% reported, -12.7%@cFX 25.6 €M Q1 2024

Q1 2024 GROSS PROFIT 166.2 €M, -1.0%

• Higher production efficiency and lower D&A resulting from 2023 industrial restructuring
• Positive pricing and channel mix offsetting dilutive effect of phase-out sales

GROSS MARGIN 60.0%, +160 bps

ECONOMIC PERFORMANCE

Q1 2024 ADJ.1 EBITDA 32.0 €M, -1.3%

ADJ.1 EBITDA MARGIN 11.5%, +20 bps

Normalization of IT and marketing investments

Operating leverage still slightly negative

Positive cash flow generation driven by a solid operating performance and a lower absorption from net working capital

	December 31, 2023	March 31, 2024
GROUP NET DEBT	82.7	81.3
Pre IFRS-16	43.7	41.8

FINANCIAL PERFORMANCE

SECURING OUR LICENSE BRAND PORTFOLIO

Early renewal of MARC JACOBS EYEWEAR

SECURING OUR LICENSE BRAND PORTFOLIO

Perpetual license for EYEWEAR BY DAVID BECKHAM

Appendices

NOTES TO THE PRESENTATION

¹ In Q1 2024, the adjusted EBITDA excludes non-recurring charges for Euro 3.9 million mainly due to the potential costs related to a terminated license agreement.

In Q1 2023, the adjusted EBITDA excludes non-recurring costs for Euro 3.1 million related to some special projects and restructuring expenses.

Q1 2024 NET SALES BY GEOGRAPHY

(Euro million)	Q1 2024	%	Q1 2023	%	Change at current forex	Change at constant forex
North America	114.5	41.3	124.7	43.4	-8.2%	-7.2%
Europe	125.3	45.2	121.6	42.3	+3.0%	+5.8%
Asia Pacific	11.9	4.3	12.0	4.2	-1.1%	+2.3%
Rest of the world	25.6	9.2	28.8	10.0	-11.3%	-12.7%
Total	277.2	100.0	287.2	100.0	-3.5%	-1.8%

Q1 2024 TRADING UPDATE

net sales	% Change
4% 58	-1.0%
10 2%	-4.0%
11 3%	-1.3%

(Euro million)	Q1 2024	% on net sales	Q1 2023	% on net sales	% Change
Net sales	277.2		287.2		-3.5%
Performance at constant exchange rates					-1.8%
Gross Profit	166.2	60 0%	167.8	4% 58	-1.0%
EBITDA	28.1	10 1%	29.3	10 2%	-4.0%
Adjusted1 EBITDA	32.0	11 5%	32.4	11 3%	-1.3%
IFRS 16 impact on EBITDA	3.0		3.0
IFRIC SaaS impact on EBITDA	(2.0)		(3.3)

EXCHANGE RATES

	As of		(Appreciation)/ Depreciation	Average for		(Appreciation)/ Depreciation
Currency	Code	March 31, 2024	December 31, 2023	%	Q1 2024	Q1 2023	%
US Dollar	USD	1.0811	1.1050	-2.2%	1.0858	1.0730	1.2%
Hong-Kong Dollar	HKD	8.4594	8.6314	-2.0%	8.4912	8.4106	1.0%
Swiss Franc	CHF	0.9766	0.9260	5.5%	0.9491	0.9925	-4.4%
Canadian Dollar	CAD	1.4672	1.4642	0.2%	1.4639	1.4513	0.9%
Japanese Yen	YEN	163.4500	156.3300	4.6%	161.1500	141.9806	13.5%
British Pound	GBP	0.8551	0.8691	-1.6%	0.8563	0.8831	-3.0%
Swedish Krown	SEK	11.5250	11.0960	3.9%	11.2792	11.2030	0.7%
Australian Dollar	AUD	1.6607	1.6263	2.1%	1.6511	1.5701	5.2%
South-African Rand	ZAR	20.5226	20.3477	0.9%	20.5069	19.0602	7.6%
Russian Ruble	RUB	100.1656	99.9723	0.2%	98.7498	78.6589	25.5%
Brasilian Real	BRL	5.4032	5.3618	0.8%	5.3752	5.5751	-3.6%
Indian Rupee	INR	90.1365	91.9045	-1.9%	90.1551	88.2438	2.2%
Singapore Dollar	SGD	1.4587	1.4591	0.0%	1.4552	1.4302	1.7%
Malaysian Ringgit	MYR	5.1168	5.0775	0.8%	5.1279	4.7087	8.9%
Chinese Renminbi	CNY	7.8144	7.8509	-0.5%	7.8048	7.3419	6.3%
Korean Won	KRW	1,458.6700	1,433.6600	1.7%	1,444.2103	1,369.9326	5.4%
Mexican Peso	MXN	17.9179	18.7231	-4.3%	18.4493	20.0431	-8.0%
Turkish Lira	TRY	34.9487	32.6531	7.0%	33.60274	20.26272	65.8%
Dirham UAE	AED	3.9703	4.0581	-2.2%	3.98756	3.94061	1.2%
Polish Zloty	PLN	4.3123	4.3395	-0.6%	4.33334	4.70814	-8.0%

•	The right offer for all distribution channels, for all customer types
•	Centered on contemporary segment where the highest demand of eyewear is
•	Broad based offer across genders, ages, categories & price segments
•	Appealing to the most fashion-driven consumers and functional for the more traditional
	ones
•	Assuring trends (sustainability, outdoor, celebrities and digital) and service (size, fit, optician-friendly features)

TO REACH A BROAD AUDIENCE OF TARGET CONSUMERS STRONG BRAND PORTFOLIO