Safilo Group — Interim / Quarterly Report 2022

Aug 3, 2022

THE BOARD OF DIRECTORS OF SAFILO GROUP S.P.A. APPROVES THE RESULTS OF THE FIRST HALF OF 2022

H1 2022 organic¹ sales growth of +12.0% and adj.² EBITDA margin at 11.0%

Q2 2022 organic¹sales growth of +9.8% and adj.² EBITDA margin at 10.6%

Strong results confirm effectiveness of Safilo's strategies and execution

Highest growth momentum driven by Europe, key emerging markets, and the sport and outdoor portfolio of Smith

Significant increase of profitability thanks to sales growth and structural cost reduction beyond inflationary headwinds

• Net Sales:	€570.9M, +6.2% at constant FX. Organic1 growth +12.0%
• Gross profit:	€318.3M, +21.4% and margin at 55.8% vs 51.3% in 2021
2 EBITDA: • Adj.	€62.6M, +26.1% and margin at 11.0% vs 9.7% in 2021
2 Net result: • Adj.	€33.7M vs €4.4M and margin at 5.9% vs 0.9% in 2021
• Group Net debt:	€105.6M vs €94.0M as at December 31, 2021

H1 2022 Key Economic and Financial highlights

Padua, August 3, 2022 – The Board of Directors of Safilo Group S.p.A. has today reviewed and approved the economic and financial results of the first half of 2022.

Angelo Trocchia, Safilo Chief Executive Officer, commented:

"We are pleased with the development of our business in the second quarter. Our strategic objective to build a Safilo with a strong and balanced portfolio of brands, geographies, products and channels is progressing well. This year Europe, our second largest region, has bounced back strongly becoming the Group's key revenue growth driver in the first semester.

Our organic¹ business instead remained substantially in line with last year in North America, where, this year, the pace of consumption has been undoubtedly moderate behind a tougher economic environment in the United States, a market where our sales were faced with an even more demanding comparison with Q2 2021.

In Q2 we also benefited from the strength of our business in emerging markets, in particular in Brazil, Mexico and the Middle East, while China was impacted by the Covid-related lockdowns.

After posting a strong start to the year, positive top line momentum continued in Q2 with a total performance at constant exchange rates of +4.0% and another solid organic¹ growth of +9.8% which allowed us to close the first half of the year with a double-digit organic¹ growth of +12.0%. As expected, sales of sunglasses were back to growth, but we were equally delighted to see that our prescription frames business continued to rise.

Our brands were our strongest assets: from our own Carrera and Polaroid, which continued to record strong doubledigit growth rates, adding to the outstanding performance of Smith's portfolio of sport and outdoor focused products, to our licensed brands BOSS, Tommy Hilfiger, Kate Spade, David Beckham, UnderArmour and Isabel Marant. We are particularly proud of the strong demand for our new launches of Carolina Herrera, Chiara Ferragni and Dsquared2, all supporting our strategy for a more diversified and balanced license portfolio.

Also in the second quarter, our earnings growth continued to exceed sales growth. We delivered another meaningful expansion of the gross profit, up 20.0% compared to last year, while the gross margin soared to 56.5% from 52.3%, more than offsetting ongoing inflationary pressures of logistics and energy costs with a positive sales mix and price. This has been a key enabler to keep investing in marketing and advertising activities to fuel the growth of our brands. At the operating level, our adjusted² EBITDA margin reached 10.6% in Q2, taking our H1 margin to 11.0%, 130 basis points higher than in H1 2021.

In the first half, we also returned to a more consistent net result, reaching 33.7 million euros, and an exponential increase compared to both H1 2021 and H1 2019.

At the end of June, our Group Net Debt was well under control, slightly below the position recorded at the end of March, and around 11 million euros higher than year-end last year due to our business seasonality.

Despite the numerous macro headwinds in which we operate, including the persistence of strong inflationary pressures and their related impacts on consumption, Covid-related restrictions and the conflict in Ukraine, our results and the trends recorded so far in the eyewear industry give us confidence to reach already in 2022 the economic targets set out in our 2024 business plan."

Q2 2022 TRADING UPDATE - NET SALES PERFORMANCE

Safilo's net sales in Q2 2022 reached Euro 288.3 million, up 11.2% at current exchange rates and 4.0% at constant exchange rates compared to Euro 259.4 million recorded in Q2 2021.

The organic¹ sales performance, equalling a growth of 9.8% at constant exchange rates, was driven by Smith's continuing strong momentum, as well as by the double-digit sales growth rates of Carrera and Polaroid. Within the Group's licensed portfolio, the significant progress of Tommy Hilfiger, BOSS, David Beckham, Under Armour and Isabel Marant stood out.

In Q2, Safilo's total net sales performance continued to be supported by the successful roll-out of the new Carolina Herrera, Dsquared2 and Chiara Ferragni eyewear collections, all contributing to offset the discontinued business still recorded in Q2 2021.

Q2 organic¹ sales performance remained also driven by the key product and channel dynamics recorded in the first quarter, with the sunglasses business confirming a significant rebound, equal to + 9.2% at constant exchange rates, reflecting a buoyant consumer demand in Europe, Middle East and Latin America, and the sales of prescription frames which recorded yet another quarter on quarter progress, equal to + 4.6% at constant exchange rates.

Finally, the Group's 'Other' product category, mainly comprising the sales of snow goggles and snow and bike helmets, confirmed a strong double-digit growth rate of +48.2% at constant exchange rates in the quarter.

In the second quarter, Safilo kept benefitting from the evolution of its increasingly multi-channel business model, which has allowed it, on the one hand, to fully seize the opportunities provided in the period by the strong recovery of physical retail, while, on the other, to continue developing the digital sales channels: direct to consumer (D2C) and through internet pure players (IPPs), which in Q2 grew by around 6% at constant exchange rates.

					Change at current forex	Change at constant forex
(Euro million)	Q2 2022	%	Q2 2021	%	Reported	Reported	Organic1
North America	129.6	45.0	121.0	46.6	+7.1%	-5.1%	-0.6%
Europe	120.0	41.6	106.7	41.1	+12.4%	+12.1%	+20.7%
Asia Pacific	12.7	4.4	12.9	5.0	-1.4%	-8.5%	+5.9%
Rest of the world	26.0	9.0	18.7	7.2	+38.6%	+24.9%	+26.4%
Total	288.3	100.0	259.4	100.0	+11.2%	+4.0%	+9.8%

Group's net sales performance by geography in Q2 2022:

• Net sales in North America totalled Euro 129.6 million in Q2 2022, up 7.1% at current exchange rates thanks to the positive foreign exchange impact resulting from the significant revaluation of the US dollar against the euro. At constant exchange rates, the performance of the market instead declined by a total 5.1% due to the challenging comparison with Q2 2021 and a slower consumption pace in the United States. The organic¹ business instead remained substantially in line with last year, at -0.6%, thanks especially to Smith's outstanding performance in its core categories of goggles and helmets, and by a sound growth of Carrera, BOSS, HUGO, Under Armour and David Beckham, while Blenders softened due to a business environment that became progressively more challenging for pure e-tailers.
• Net sales in Europe reached Euro 120.0 million in Q2 2022, up 12.4% at current exchange rates and +12.1% at constant exchange rates compared to Q2 2021. Organic growth¹ at +20.7% at constant exchange rates, confirmed the excellent performance recorded by the region in Q1, in the wake of a very dynamic business environment, fuelled by the return of local and international tourists, the latter mainly from the United States and the Middle East. Sales of sunglasses recorded a strong bounce back in all key European markets, especially in Italy, France, Spain and Portugal, while business in Turkey and Poland was particularly strong thanks to the significant growth of Polaroid, Carrera and the Group's core licenses.

In Europe, the Iberian markets in particular benefitted from the highly successful launch of the new collections of Carolina Herrera by Safilo.

• Net sales in Asia and Pacific stood at Euro 12.7 million in Q2 2022, down 1.4% at current exchange rates and 8.5% at constant exchange rates compared to Q2 2021, with the business in Greater China remaining the main drag of the reported regional performance due to the months of April and May heavily impacted by Covid-related lockdowns. Sales momentum was instead dynamic in South East Asia, in Australia and in Japan, thanks to the ongoing expansion of brands such as Carrera, Smith, BOSS, Kate Spade and Levi's which supported another quarter of positive organic¹ growth for the region, at +5.9% at constant exchange rates.
• Net sales in the Rest of the World increased to Euro 26.0 million in Q2 2022, up 38.6% at current exchange rates and 24.9% at constant exchange rates compared to Q2 2021. Similarly, organic¹ sales growth in the region equalled +26.4% at constant exchange rates, consolidating the strong performance recorded in Q1 and again marking the very positive business momentum experienced on one side by Brazil and Mexico, alongside the other smaller Latin American markets, and, on the other, by Middle East and India, on the back of a dynamic trading environment and strong performance in particular by Carrera, Polaroid, Tommy Hilfiger, BOSS, HUGO and David Beckham.

Q2 2022 TRADING UPDATE - ECONOMIC PERFORMANCE

In Q2 2022, Safilo continued to effectively counter inflationary pressures with a positive price/mix effect and additional structural COGS savings, overall granting the Group another significant increase in gross profit and the ability to reinvest part of this improvement in higher advertising and communication activities to support the positive top line momentum.

Key Economic highlights - in Euro million	Q2 2022	% on net sales	Q2 2021	% on net sales	% Change 2022 vs 2021
Net sales Reported at cFX	288.3		259.4		+11.2% +4.0%
Organic1 at cFX					+9.8%
Gross Profit	162.8	56.5%	135.6	52.3%	+20.0%
EBITDA	33.3	11.6%	37.7	14.5%	-11.5%
Adjusted2 EBITDA	30.6	10.6%	23.8	9.2%	+28.5%
IFRS 16 impact on EBITDA	2.8		2.8

Gross profit in Q2 2022 amounted to Euro 162.8 million, marking an increase of 20.0% compared to Q2 2021, while the gross margin rose by 420 basis points, from 52.3% to 56.5% of sales (respectively +16.8% and +280 basis points compared to Q2 2021 adjusted² gross profit and margin).

In the period, selling, general and administrative costs increased by 13.0% compared to Q2 2021 due to higher investments in marketing and advertising, and for Euro 1.8 million due to the impact related to software-as-a-service investment projects under the new IFRIC agenda, the equivalent of which in Q2 2021 had been capitalized.

Adjusted² EBITDA in Q2 2022 stood at Euro 30.6 million, up 28.5% compared to Q2 2021, while the adjusted² EBITDA margin rose by 140 basis points, from 9.2% to 10.6% of sales (11.2% ex IFRIC SaaS impact).

H1 2022 RESULTS - NET SALES PERFORMANCE

Safilo's net sales in H1 2022 totalled Euro 570.9 million, up 11.8% at current exchange rates, +6.2% at constant exchange rates compared to Euro 510.7 million recorded in H1 2021.

After a strong organic¹ growth of 14.3% in Q1, the solid top line momentum recorded in Q2, at +9.8%, allowed the Group to close the first half of the year with a double-digit organic¹ growth of 12.0% at constant exchange rates, driven by the continued strength of the owned brands Polaroid, Smith and Carrera, and of the main licensed brands of the Group. In H1 2022, Safilo made further progress in the implementation of its turnaround strategy, countering the sales recorded in H1 2021 by the discontinued brands with the successful launch of the new collections of Carolina Herrera, Dsquared2 and Chiara Ferragni.

The first half of the year saw the expected pick-up of sunglass sales, posting an organic¹ growth of 13.9% at constant exchange rates, thanks to a buoyant consumer demand in Europe, the Middle East and Latin America. Sales of prescription frames, representing 38.9% of the Group's total business at the end of the semester, confirmed their natural resilience, recording an organic¹ growth of 5.0% at constant exchange rates, despite the very demanding comparison with H1 2021 when the product category soared by 19.8% compared to H1 2019. Finally, the business of helmets and goggles for winter and summer sport activities kept growing at a rapid pace in the first half of 2022, taking the share of the Group's 'Other' product category to 9.6% of the Group's total business, growing sales by +33.6% at constant exchange rates, and leading the turnover of sports products to more than double compared to H1 2019.

In H1 2022, Safilo's total online sales, consisting of its direct to consumer business (D2C) and the Group's sales via internet pure players (IPP), increased by 7% at constant exchange rates, confirming their share of Safilo's total revenue at a solid 14.4% (13.6% in H1 2021) despite consumer spending returning strongly to physical stores.

The Group also kept leveraging its multichannel business model by continuing to develop its B2B e-commerce platforms, including You&Safilo in Europe, whose revenues grew by around 12% compared to H1 2021.

In the first half of the year, sales growth by geography was driven by the strong bounce back of Europe, while sales performance in North America, facing the double challenge of a tough comparison with H1 2021 and this year's slower consumption pace in the United States, remained positive at the organic¹ level. The emerging markets of Latin America, India and the Middle East, representing together the so called 'Rest of the World' region, confirmed very sustained growth rates over the entire half year, whereas sales in Asia and Pacific, overall penalized by the Covid-related restrictions and lockdowns imposed by China until the beginning of June, grew at the organic¹ level thanks to continued positive trends in South East Asia and Japan.

					Change at current forex	Change at constant forex
(Euro million)	H1 2022	%	H1 2021	%	Reported	Reported	Organic1
North America	258.7	45.3	240.1	47.0	+7.7%	-2.2%	+2.4%
Europe	237.1	41.5	208.2	40.8	+13.9%	+14.1%	+22.7%
Asia Pacific	25.1	4.4	25.9	5.1	-2.9%	-8.9%	+4.1%
Rest of the world	49.9	8.7	36.5	7.2	+36.7%	+26.1%	+28.1%
Total	570.9	100.0	510.7	100.0	+11.8%	+6.2%	+12.0%

Group's net sales performance by geography in H1 2022:

H1 2022 RESULTS - ECONOMIC PERFORMANCE

In the first half of 2022 Safilo recorded another meaningful economic improvement compared to the same period of 2021, in which the Group had already posted a significant increase versus 2019. As net sales continued to grow driven by the increase of volumes, positive sales mix and price effects, these top line dynamics, alongside the structural savings of around Euro 6 million achieved in the first half of the year at the COGS level, allowed the Group to more than offset the inflationary pressures which continued to impact transport and energy costs and to post a remarkable increase in gross profit.

Safilo delivered a robust economic performance also at the operating level, notwithstanding the increase in marketing and advertising investments, on the back of the business seasonality and its positive momentum, and higher EDP expenses following the accounting of software-as-a-service investment projects under the new IFRIC agenda.

At the net profit level, the Group recorded a further meaningful upside, thanks to lower financial charges and gains on liabilities for options on non-controlling interests.

Key Economic highlights - in Euro million	H1 2022	% on net sales	H1 2021	% on net sales	% Change 2022 vs 2021
Net sales	570.9		510.7		+11.8%
					+6.2%
Reported at cFX
Organic1 at cFX					+12.0%
Gross profit	318.3	55.8%	262.2	51.3%	+21.4%
EBITDA	62.1	10.9%	51.0	10.0%	+21.6%
Adjusted2 EBITDA	62.6	11.0%	49.7	9.7%	+26.1%
Operating result	38.0	6.7%	22.3	4.4%	+70.1%
Adjusted2 operating result	39.2	6.9%	24.7	4.8%	+59.1%
Group net result	32.7	5.7%	2.0	0.4%	n.s.
Adjusted2 Group net result	33.7	5.9%	4.4	0.9%	n.s.
IFRS 16 impact on EBITDA	5.5		5.7
IFRS 16 impact on Operating result	0.7		0.9
IFRS 16 impact on Net result	(0.1)		0.1

Gross profit in H1 2022 reached Euro 318.3 million, recording an increase of 21.4% compared to H1 2021, while the gross margin grew to 55.8%, improving 450 basis points compared to the gross margin of 51.3% recorded last year (respectively +17.6% and +280 basis points compared to H1 2021 adjusted² gross profit and margin).

In H1 2022, selling, general and administrative costs increased by 13.9% compared to the H1 2021 behind an increase in marketing and advertising investments recorded both in Q1 and Q2 due to the peak season for the sunglass business, and the impact of Euro 3.7 million of software-as-a-service investment projects under the new IFRIC agenda, the equivalent of which in H1 2021 was still capitalized.

Adjusted² EBITDA in H1 2022 amounted to Euro 62.6 million, up 26.1% compared to the adjusted² EBITDA of Euro 49.7 million recorded in H1 2021. The adjusted² EBITDA margin stood at 11.0% (11.6% ex IFRIC SaaS impact), marking an improvement of 130 basis points compared to the 9.7% posted in H1 2021.

Adjusted² EBIT in H1 2022 amounted to Euro 39.2 million, up 59.1% compared to the adjusted² EBIT of Euro 24.7 million recorded in H1 2021, while the adjusted² EBIT margin grew to 6.9% from 4.8% posted in H1 2021.

Below the operating results, the main drivers were:

• a gain equal to Euro 8.7 million due to lower liabilities for options on non-controlling interests, mainly following the increase of Safilo's controlling stake in Privé Revaux from 64.2% to 82.8%;
• net financial charges of Euro 2.7 million, substantially lower compared to Euro 11.6 million recorded in H1 2021, thanks to the share capital increase undertaken last year, which more than halved the Group Net Debt, and to a net positive impact of Euro 3.4 million from exchange rate differences.

Adjusted² Group Net result in H1 2022 equalled a profit of Euro 33.7 million compared to Euro 4.4 million recorded in H1 2021. The adjusted² Group net margin increased to 5.9% from 0.9% recorded last year.

FREE CASH FLOW AND FINANCIAL PERFORMANCE AS AT JUNE 30, 2022

In H1 2022, Safilo's Free Cash Flow equalled a cash absorption of Euro 14.5 million compared to the cash absorption of Euro 4.8 million recorded in H1 2021.

Free Cash Flow - in Euro million	H1 2022	H1 2021
Cash flow from operating activities before changes in working capital	52.0	19.5
Changes in working capital	(55.6)	(9.4)
Cash flow from operating activities	(3.6)	10.1
Cash flow for organic investment activities	(6.2)	(9.8)
Cash payments for the principal portion of lease liabilities IFRS 16	(4.7)	(5.1)
Cash Free Flow	(14.5)	(4.8)

Safilo closed the first half of 2022 with a negative cash flow from operating activities of Euro 3.6 million (it was positive for Euro 10.1 million in H1 2021), reflecting, on one side, the significant improvement of the economic performance, and, on the other, the cash absorption from the change in net working capital. In the first half of the year, Safilo recorded a sizeable increase of trade receivables, in line with the growth of the business activity, while trade payables just slightly increased, offsetting the small rise in inventories compared to the end of the year. It is worth noting that while cash collection remained very strong and healthy during the whole semester, the activity of the period could not count on around Euro 10 million due to some anticipated payments from customers at the end of 2021. In H1 2022, the cash flow for investments stood at Euro 6.2 million.

At June 30, 2022, the Group's net debt amounted to Euro 105.6 million (Euro 63.5 million pre-IFRS 16, with a corresponding leverage ratio, also pre IFRIC SaaS, of 0.7x), compared to Euro 109.1 million (Euro 68.9 million pre-IFRS 16) at the end of March 2022 and Euro 94.0 million (Euro 52.8 million pre-IFRS 16) as at December 31, 2021.

The key components of the Group's net debt at the end of June 2022 were the following:

• a long-term debt position of Euro 141.3 million, consisting of the Euro 107.6 million Term Loan facility guaranteed by SACE and IFRS-16 lease liabilities of Euro 33.7 million;
• a short-term debt position of Euro 43.0 million, consisting of bank loans and other short-term borrowings of Euro 34.5 million and IFRS-16 lease liabilities of Euro 8.4 million;
• a cash position of Euro 78.7 million.

2022 OUTLOOK

Based on the results recorded in the first half of 2022 and the current visibility into the third quarter, Safilo management is confident about already reaching in 2022 the economic targets set out in the 2024 business plan, which envisaged net sales at around Euro 1 billion and the adjusted EBITDA margin between 9% and 11%.

The Group now expects full year 2022 net sales to grow mid-single digits at constant exchange rates compared to 2021 and the adjusted² EBITDA margin to stand at around 10% from 8.4% recorded in 2021. These forecasts are assuming for the rest of the year a reasonably stable economic and business environment compared to the current situation in relation to macro-economic and geo-political drivers.

The Group aims to provide an update of its medium-term economic and financial targets in the fourth quarter of the year.

UPDATES AFTER H1 2022

On July 21, 2022, Safilo announced that it has joined The Fashion Pact, a global coalition of companies in the fashion and textile industry (ready-to-wear, sport, lifestyle and luxury) including their suppliers and distributors, all committed to a common core of key environmental goals in three areas: stopping global warming, restoring biodiversity and protecting the oceans.

Notes to the press release:

• ¹ Organic sales include only the proprietary brands and not terminated licenses, present in both of the compared periods, excluding the business attributable to the production supply contract with Kering Eyewear.
• 2 In H1 2022, the adjusted economic results exclude net non-recurring costs for Euro 1.2 million (Euro 0.6 million at the EBITDA level) due to some special projects costs and restructuring expenses, almost fully offset by the release of a restructuring provision. In Q2 2022, the adjusted EBITDA excludes a net non-recurring income for Euro 2.7 million, related to the release of the above mentioned restructuring provision, net of some other non-recurring expenses of the period.

In H1 2021, the adjusted economic results excluded non-recurring costs for Euro 19.3 million (Euro 8.4 million at the gross profit level, and Euro 15.6 million at the EBITDA level), mainly related to the announced closure, starting from June 2021, of the Ormož production plant in Slovenia, and also a non-recurring income of Euro 17 million due to the release of a provision for risks and charges booked in 2015 in relation to an investigation by the French Competition Authority. The release was a result of the positive outcome, without sanctions, of this investigation.

In Q2 2021, the adjusted EBITDA excluded non-recurring costs for Euro 3.2 million (Euro 3.8 million at the gross profit level), and a non-recurring income of Euro 17 million due to the release of the above mentioned provision.

Statement by the manager responsible for the preparation of the company's financial documents

The manager responsible for the preparation of the company's financial documents, Mr. Gerd Graehsler, hereby declares, in accordance with paragraph 2 article 154 bis of the "Testo Unico della Finanza", that the accounting information contained in this press release corresponds to the accounting results, registers and records.

Disclaimer

This document contains forward-looking statements, relating to future events and operating, economic and financial results for Safilo Group. Such forecasts, due to their nature, imply a component of risk and uncertainty due to the fact that they depend on the occurrence of certain future events and developments. The actual results may therefore vary even significantly to those announced in relation to a multitude of factors.

Alternative Performance Indicators

The definitions of the "Alternative Performance Indicators", not foreseen by the IFRS-EU accounting principles and used in this press release to allow for an improved evaluation of the trend of economic-financial management of the Group, are provided below:

• EBITDA (gross operating profit) is calculated by Safilo by adding to the Operating profit, depreciation and amortization;
• The Net Debt is for Safilo the sum of bank borrowings and short, medium and long-term loans, net of cash on hand and at bank. Such indicator does not include the valuation at the reporting date of derivative financial instruments and the liability for options on non-controlling interests;
• The Free Cash Flow for Safilo is the sum of the cash flow from/(for) operating activities and the cash flow from /(for) investing activities and the cash payments for the principal portion of IFRS 16 lease liabilities.

Conference Call and Webcast

Today, at 6:15 pm CET (5:15pm GMT; 12:15pm EST) a conference call will be held with the financial community during which the First Half of 2022 results will be discussed.

It is possible to follow the conference call by calling +39 02 8020911, +44 1212 818 004, +33 1 70918704 or +1 718 7058796 (for journalists +39 02 8020927).

The conference call is also available via webcast at: https://SafiloGroup/H12022Results/audiowebcast. A recording of the conference call will be available from August 3 until August5, 2022 on http://SafiloGroup/FY2021results/replay.

Consolidated income statement

(Euro/000)	First semester 2022	First semester 2021	Change %
Net sales	570,882	510,724	11.8%
Cost of sales	(252,572)	(248,487)	-1.6%
Gross profit	318,310	262,236	21.4%
Selling and marketing expenses	(219,015)	(188,080)	-16.4%
General and administrative expenses	(62,520)	(59,050)	-5.9%
Other operating income/(expenses)	1,236	7,235	-82.9%
Operating profit/(loss)	38,011	22,342	70.1%
Gains/(losses) on liabilities for options on non-controlling interests	8,731	(673)	n.s.
Financial charges, net	(2,701)	(11,605)	76.7%
Profit/(Loss) before taxation	44,041	10,064	n.s.
Income taxes	(11,699)	(7,584)	-54.3%
Profit/(Loss) of the period	32,342	2,480	n.s.
Non-controlling interests	(375)	520	n.s.
Net profit/(loss) attributable to the Group	32,717	1,960	n.s.
Earnings/(Losses) per share - basic (Euro)	0.079	0.007
Earnings/(Losses) per share - diluted (Euro)	0.078	0.007

Consolidated Balance sheet

	June 30,	December 31,
(Euro/000)	2022	2021	Change
ASSETS
Current assets
Cash and cash equivalents	78,674	99,002	(20,328)
Trade receivables	241,108	173,548	67,561
Inventory	252,728	234,430	18,298
Derivative financial instruments	1,898	1,503	395
Other current assets	46,365	53,406	(7,042)
Total current assets	620,772	561,888	58,885
Non-current assets
Tangible assets	112,667	115,613	(2,946)
Right of Use assets	37,337	36,918	418
Intangible assets	143,437	141,659	1,778
Goodwill	35,832	32,861	2,971
Deferred tax assets	38,168	37,441	727
Derivative financial instruments	-	-	-
Other non-current assets	9,099	9,070	28
Total non-current assets	376,538	373,563	2,975
Non-current assets held for sale	2,320	2,320	-
Total assets	999,631	937,771	61,860
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Borrowings	34,549	20,000	14,549
Lease liabilities	8,410	8,247	163
Trade payables	201,971	193,082	8,889
Tax payables	28,845	17,420	11,424
Derivative financial instruments	59	545	(485)
Other current liabilities	55,524	55,562	(37)
Provisions	8,087	15,776	(7,689)
Total current liabilities	337,446	310,632	26,814
Non-current liabilities
Borrowings	107,611	131,798	(24,187)
Lease liabilities	33,672	32,917	755
Employees benefits obligations	18,001	18,995	(994)
Provisions	14,521	15,144	(623)
Deferred tax liabilities	13,031	13,031	-
Derivative financial instruments	-	-	-
Liabilities for options on non-controlling interests	42,501	47,406	(4,905)
Other non-current liabilities	1,855	1,760	95
Total non-current liabilities	231,192	261,052	(29,859)
Total liabilities	568,638	571,684	(3,045)

Shareholders' equity Share capital 384,824 384,820 4 Share premium reserve 692,467 692,458 10 Retained earnings and other reserves (710,599) (771,812) 61,214 Cash flow hedge reserve - - - Income/(Loss) attributable to the Group 32,717 21,275 11,442 Total shareholders' equity attributable to the Group 399,410 326,741 72,669 Non-controlling interests 31,582 39,346 (7,764) Total shareholders' equity 430,992 366,087 64,905 Total liabilities and shareholders' equity 999,631 937,771 61,860

Consolidated statement of cash flows

(Euro/000)	First semester 2022	First semester 2021
A - Opening net cash and cash equivalents (net financial
indebtedness - short term)	99,002	85,966
B - Cash flow from (for) operating activities
Net profit/(loss) for the period (including minority interests)	32,342	2,480
Depreciation and amortization	19,221	23,817
Right of Use depreciation IFRS 16	4,822	4,882
Non-monetary changes related to liabilities for options on non-controlling
interests	(8,731)	673
Other items	(11,230)	(20,362)
Interest expenses, net	2,070	6,515
Interest expenses on lease liabilities IFRS 16	781	788
Income tax expenses	11,699	7,584
Flow from operating activities prior
to movements in working capital	50,974	26,377
(Increase) Decrease in trade receivables	(57,885)	(43,783)
(Increase) Decrease in inventory, net	(4,833)	6,730
Increase (Decrease) in trade payables	3,840	31,556
(Increase) Decrease in other receivables	4,443	(7,191)
Increase (Decrease) in other payables	(1,152)	3,303
Interest expenses paid	(1,678)	(3,121)
Interest expenses paid on lease liabilities IFRS 16	(781)	(788)
Income taxes paid	3,462	(2,968)
Total (B)	(3,609)	10,115
C - Cash flow from (for) investing activities
Investments in property, plant and equipment	(4,702)	(5,725)
Net disposals of property, plant and equipment and assets held for sale	62	598
(Purchase)/Disposal of subsidiary (net of cash acquired/disposed)	-	-
Purchase of intangible assets, net of disposals	(1,597)	(4,715)
Total (C)	(6,237)	(9,842)
D - Cash flow from (for) financing activities
Proceeds from borrowings	-	-
Repayment of borrowings	(10,000)	(10,457)
Repayment of principal portion of lease liabilities IFRS 16	(4,688)	(5,111)
Increase in share capital, net of transaction costs	13	-
Dividends paid	(589)	(1,121)
Total (D)	(15,263)	(16,688)
E - Cash flow for the period (B+C+D)	(25,109)	(16,415)
Translation exchange differences	4,781	1,678
Total (F)	4,781	1,678
G - Closing net cash and cash equivalents (net financial
indebtedness - short term) (A+E+F)	78,674	71,229

About Safilo Group

Established in 1934 in Italy's Veneto region, Safilo Group is one of the eyewear industry's key players in the design, manufacturing and distribution of prescription frames, sunglasses, outdoor eyewear, goggles and helmets. The Group designs and manufactures its collections by blending stylistic, technical and industrial innovation with quality and skillful craftsmanship. With an extensive global presence, Safilo's business model enables it to monitor its entire production and distribution chain. From research and development in five prestigious design studios, located in Padua, Milan, New York, Hong Kong and Portland, to its company-owned production facilities and network of qualified manufacturing partners, Safilo Group ensures that every product offers the perfect fit and meets the highest quality standards. Reaching approximately 100,000 selected points of sale worldwide with an extensive wholly owned network of subsidiaries in 40 countries and more than 50 partners in 70 countries, Safilo's well-established traditional wholesale distribution model, which encompasses eyecare retailers, chains, department stores, specialized retailers, boutiques, duty free shops and sporting goods stores, is complemented by Direct-to-Consumer and Internet pure player sales platforms, in line with the Group's development strategies.

Safilo Group's portfolio encompasses own core brands: Carrera, Polaroid, Smith, Blenders, Privé Revaux and Seventh Street. Licensed brands include: Banana Republic, BOSS, Carolina Herrera, Chiara Ferragni, Dsquared2, Eyewear by David Beckham, Fossil, havaianas, HUGO, Isabel Marant, Jimmy Choo, Juicy Couture, kate spade new york, Levi's, Liz Claiborne, Love Moschino, Marc Jacobs, Missoni, M Missoni, Moschino, Pierre Cardin, PORTS, rag&bone, Rebecca Minkoff, Tommy Hilfiger, Tommy Jeans and Under Armour.

The parent company, Safilo Group S.p.A., is listed on the Italian Stock Exchange ("MTA") organized and managed by Borsa Italiana (ISIN code IT0004604762, Bloomberg SFL.IM, Reuters SFLG.MI). In 2021, Safilo Group recorded net revenues for Euro 969.6 million.

Contacts:

Safilo Group Investor Relations Barbara Ferrante Ph. +39 049 6985766 https://www.safilogroup.com/en/investors

Safilo Group Press Office

Elena Todisco elena.todisco@safilo.com Mob. +39 339 1919562 Barabino&Partners S.p.A. Pietro Cavallera p.cavallera@barabino.it Ph. +39 02 72023535 Mob. +39 338 9350534