Unieuro — Earnings Release 2020

Jan 9, 2020

Unieuro S.p.A.

9M 2019/20 Results 9 January 2020

Disclaimer

Safe Harbour Statement

This documentation has been prepared by Unieuro S.p.A. for information purposes only and for use in presentations of Unieuro's results and strategies.

This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person or legal entity.

This presentation might contain certain forward looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries.

Statements contained in this presentation, particularly regarding any possible or assumed future performance of Unieuro S.p.A., are or may be forward-looking statements based on Unieuro S.p.A.'s current expectations and projections about future events, and in this respect may involve some risks and uncertainties. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Unieuro S.p.A. to control or estimate.

You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Unieuro S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Any reference to past performance or trends or activities of Unieuro S.p.A. shall not be taken as a representation or indication that such performance, trends or activities will continue in the future.

This presentation has to be accompanied by a verbal explanation. A simple reading of this presentation without the appropriate verbal explanation could give rise to a partial or incorrect understanding.

This presentation is of purely informational and does not constitute an offer to sell or the solicitation of an offer to buy Unieuro's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarding the securities of Unieuro.

Unieuro's securities referred to in this document have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

No IFRS and Other Performance Measures

This investor presentation contains measures that were not prepared in accordance with IAS/IFRS.

This presentation contains certain items as part of the financial disclosure which are not defined under IFRS. Accordingly, these items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other entities.

Unieuro Management has identified a number of "Alternative Performance Indicators" ("APIs"). These APIs are (i) derived from historical results of Unieuro S.p.A. and are not intended to be indicative of future performance, (ii) no IFRS financial measures and, although derived from the Financial Statements, are unaudited and (iii) are not an alternative to financial measures prepared in accordance with IFRS.

The APIs presented herein are Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (loss) for the year, Adjusted levered free cash flow, Cash conversion index, Net financial debt, Net financial debt to Adjusted EBITDA ratio, Leverage ratio.

In addition, this presentation includes certain measures that have been adjusted by us to present operating and financial performance net of any non-recurring events and non-core events. The adjusted indicators are: Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income (loss) for the year, Adjusted levered free cash flow and Net financial debt to Adjusted EBITDA ratio.

In order to facilitate the understanding of our financial position and financial performance, this presentation contains other performance measures, such as Net working capital.

These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results.

These measures are used by our management to monitor the underlying performance of our business and operations. Similarly entitled no IFRS financial measures reported by other companies may not be calculated in an identical manner, consequently our measures may not be consistent with similar measures used by other companies. Therefore, investors should not place undue reliance on this data.

Italo Valenti, the manager in charge of preparing the corporate accounting documents, declares that, pursuant to art.154-bis, paragraph 2, of the Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records.

Agenda

• Highlights
• Sales Performance
• Achievements on Strategic Goals
• Financials
• Going Forward: Incorporation of Subsidiaries

Highlights

• Total sales up by 15.2%, benefitting from organic and external growth actions
  • Like-for-like(1) sales +4.2%
  • Another record Black Friday campaign boosting 3Q revenues
    • Retail channel sales +15.7%, increasing incidence to 70%
    • Important contribution from Pistone/Expert, DPS/Trony and Galimberti/Euronics asset acquisition
    • Black Friday pushing volumes and traffic
    • Online accelerating (+16.7%)
    • Indirect Channel double-digit performance driven by Unieuro by Iper shop-in-shops
    • Adj. EBITDA(2) improving by 13.7% to 49.6 €m
  • Adj. Net Income(3) up by 14.0% to 23.9 €m
  • IFRS 16 not considered in the presentation in order to grant comparability with 9M 18/19
• Very strong seasonal cash generation, to be partially reabsorbed in Q4
• Record positive Net Financial Position (31.5 €m) despite dividends, capex and Pistone acquisition

4

• Excellent commercial results in December, crucial in view of the imminent end of the financial year

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) LFL sales growth is calculated including: (i) retail and travel stores that have been operating for at least one entire fiscal year at the closing date of the reference period, excluding sales outlets affected by significant business discontinuity and (ii) the entire online direct channel (2) Adjusted EBITDA is EBITDA adjusted for: (i) non-recurring expenses/(income) and (ii) the impact from the adjustment of revenues for extended warranty services net of related estimated future costs, as a result of the change in the business model for directly managed assistance services. (3) Adjusted Net Income (Loss) is calculated as Net Income adjusted for (i) any corrections incorporated in adjusted EBITDA, (ii) corrections to D&A and non-recurring write-downs, (iii) corrections to non-recurring financial charges/(income) and (iv) the theoretical tax impact of such adjustments.

Agenda

• Highlights
• Sales Performance
• Achievements on Strategic Goals
• Financials
• Going Forward: Incorporation of Subsidiaries

Sales

Double-digit increase, supported by both organic growth and external expansion

• 12 former Pistone/Expert stores quickly and successfully integrated since 1st March
• Recent acquisitions also impacting business perimeter:
  • − 8 former DPS/Trony stores, including the Verona location, in three different steps from 15 September 2018
  • − 6 former Galimberti/Euronics stores, including the Trieste location, in November/December 2018
• Strong like-for-like growth, pushed by:
  • − Successful Black Friday campaign
  • − Positive performance of retail stores at constant perimeter
  • − Online sales performance accelerating in Q3
• Partnership with Finiper pushing Indirect sales
• All product categories performing well, especially White goods and Services

Success Beyond Expectations for the Addams Black Friday

Unieuro.it marking new all time records on 2019 Singles' Day

• Singles' Day (11/11): introduced in Italy by Unieuro in 2017, marking the start of the Black Friday season since then
• An order every 3 seconds on Unieuro.it: 3X Singles' Day 2018; +60% vs. Black Friday 2018
• 600,000+ visitors, more than half of whom on their first visit ever
• No service disruptions or technical issues
• Strong revenues for direct and affiliated stores as well
• Traffic at direct stores +44% vs. the average of the previous four Mondays

November sales marked by another record campaign(1)

• The longest Black Friday campaign ever: 22 days, from 11/11 to Cyber Monday (2/12)
• Theme: the Addams Family, another special and funny family, coherent with Unieuro's brand values and its communication strategy
• Strong sales results, a further improvement vs. 2018 outstanding performance:
  • − Retail channel sales: +15% with 6.7 million store visitors
  • − Sell-out of affiliated stores: +18%
  • − Online orders: Unieuro.it +77%. Success for the Monclick Fra-I-Dei campaign
• Exceptional exploit of Dyson products; Google Home Mini once again the best-selling product (45,000 pieces)
• Winning promotional strategy, purposely planned in advance thanks to a close partnership with the industry thus safeguarding margins

7

Notes: (1) All performances were calculated comparing sales recorded during the whole Addams Black Friday campaign (11 November – 2 December 2019) to the correspondent period of 2018. Monclick's Black Friday campaign (Fra-I-Dei) took place between 18 November and 2 December 2019.

Sales by Channel

YoY Change (€m)

• Retail

• − Store network expansion: +11 DOS yoy, including 12 ex-Pistone stores
• − Positive performance at constant perimeter
• − Black Friday campaign boosting sales and traffic
• Online(1) accelerating in Q3 (+19.1% YoY)
  • − Strong performance although late Black Friday (29 Nov.) will turn some orders into revenues only in Q4
  • − New all-time record for Unieuro.it on Singles' Day
  • − Positive revenue trend for Monclick.it
• Indirect channel strong increase
  • − 18 affiliated Unieuro by Iper shop-in-shops fully operational and contributing to channel performance
  • − Ongoing affiliate network streamlining
• B2B(1) reversing H1 negative trend
  • − Volatile and opportunistic business, driven by external factors
• Travel
  • − Milano San Babila new opening effect (6 October 2018)
  • − Very good performance for Torino railway station store

Sales by Product Category

YoY Change (€m)

• Grey

• − Positive performance of new smartphones launched
• − Notebook sales shifting towards top-of-range products
• − Tablets declining

• White: excellent performance, driving to a better product mix

• − Category weight from 26.1% to 28.5% of total sales
• − Contribution from ex-Pistone stores, traditionally strong in the sale of household appliances
• − Favourable weather boosting air-conditioning segment
• − Growing success for vacuum cleaners

• Brown

• − Tough comparison base for TV-sets (World Cup in June 2018)
• − Market registering a reduction in TV-sets average price
• Other products
  • − Good performance of cooking accessories and tablewear
  • − Luggage segment growing success

• Services

• − Growth still led by consumer credit and extended warranties
• − Other services increasing incidence

Agenda

• Highlights
• Sales Performance
• Achievements on Strategic Goals
• Financials
• Going Forward: Incorporation of Subsidiaries

9M 19/20 Achievements

STRATEGIC PILLAR	Proximity	Experience	Retail Mix
	• 12 new DOS from the acquisition of former Pistone/Expert stores • 2 of the most important Unieuro by Iper shop-in-shops switched from affiliates to DOS to better exploit top locations. From April 2019 • 3 new DOS openings (Portogruaro, Gela, Misterbianco), 5 closings aiming at network rationalization • 6 new affiliated Unieuro by Iper shop in-shops, newly opened in March/April 2019	• 8 stores refurbished (3 DOS, 5 affiliates), 3 DOS relocations. • Average NPS (direct channel) standing at 46, +3.3 points compared to 9M 18/19 • Augmented reality feature added to the Unieuro App to provide an even more customized customer journey	• Reiterating and reinforcing focus on Services through innovation: − "Casa Sicura Multiplan" to protect all MDAs at home, even if not purchased at Unieuro − "Helpy", Unieuro's digital assistant, providing installation and configuration of technology devices at home − Express delivery service, launched in December to allow offline customers to have their purchases delivered anywhere in Italy • Working on reinforcing Unieuro's private label(s)
	Supply Chain: launch of Carini secondary hub to better serve DOS, affiliates and online customers in Sicily and Calabria
ENABLER	Brand Equity
	Partnership with Suppliers: reinforced commercial agreements with suppliers to better manage the Black Friday campaign

Agenda

• Highlights
• Sales Performance
• Achievements on Strategic Goals
• Financials
• Going Forward: Incorporation of Subsidiaries

Key Financials (no-IFRS 16) / 1

Adj. EBITDA(2) (€m) 43.7 49.6 9M 18/19 9M 19/20 Adj. EBITDA margin +13.7% 2.8% 2.9%

Adj. Net margin Adj. Net Income/(Loss) (3) (€m) 21.0 23.9 9M 18/19 9M 19/20 1.4% 1.4% +14.0%

• Strong Retail sales growth. November impacted by long and successful Black Friday campaign
• Acquisitions and new openings effect on perimeter
• Like-for-like sales(1) +4.2%. Net of new stores effect on pre-existing network, LFL sales(1) even stronger: +5.2%
• Double-digit growth for Indirect channel and Online. Better trend in B2B sales vs. H1
• Profitability still influenced by seasonality, awaiting the Q4, traditionally strong in terms of margins
• Black Friday effect on Gross margin

• Scale effect and efficiencies driving operating costs' incidence down

• Increase in Adj. Net income in line with Adj. EBITDA performance

• Higher D&A connected to increased capex over the last years
• Lower net financial charges

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) LFL sales growth is calculated including: (i) retail and travel stores that have been operating for at least one entire fiscal year at the closing date of the reference period, excluding sales outlets affected by significant business discontinuity and (ii) the entire online direct channel (2) Adjusted EBITDA is EBITDA adjusted for: (i) non-recurring expenses/(income) and (ii) the impact from the adjustment of revenues for extended warranty services net of related estimated future costs, as a result of the change in the business model for directly managed assistance services. (3) Adjusted Net Income (Loss) is calculated as Net Income adjusted for (i) any corrections incorporated in adjusted EBITDA, (ii) corrections to D&A and non-recurring write-downs, (iii) corrections to non-recurring financial charges/(income) and (iv) the theoretical tax impact of such adjustments.

Key Financials (no-IFRS 16) / 2

Net Financial Debt/(Cash) (€m)

Adj. Levered Free Cash Flow(1) (€m)

• Long and strong Black Friday campaign leading to outstanding cash generation in the first 9M

• Dividend payment (21.4 €m), capex (20.8 €m) and Pistone acquisition (17.4 €m) all funded by free cash flow

• Temporary seasonal effect (i.e. Black Friday inflows) likely to be reabsorbed in Q4

• Strong cash generation, above 9M 18/19

• Nevertheless, strong Black Friday revenues leading to a stronger cash absorption in Q4 connected to payment of payables

Net Working Capital (€m)

• New record high for (negative) Net Working Capital
• Strong boost by extended warranty accruals, boosted by business scope expansion and Services performance

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) Adjusted Levered Free Cash Flow is defined as cash flow generated/absorbed by operating activities net of investment activities adjusted for non-recurring investments and other non-recurring operating flows and including adjustments for non-recurring expenses (income) and net of their non-cash component and the related tax impact.

Key Operational Data

Unieuro's Retail Network: 511 stores

• 12 former Pistone/Expert stores acquired and immediately reopened in Sicily (March 2019)
• 2 Unieuro by Iper shop-in-shops switched from affiliates to DOS (April 2019)
• 3 new DOS openings (2 of which in Sicily) and 5 closures, none of which in Q3
• 6 new Unieuro-by-Iper shop-in-shops reinforcing the indirect store network
• Affiliates under rationalisation: 2 openings, 21 closures
• Pick-up points: 410 (80.2% of total stores)

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) Net Promoter Score (NPS) measures customer experience and predicts business growth. It can range from -100 (if every customer is a Detractor) to 100 (if every customer is a Promoter). (2) Active loyalty customers defined as customers who made at least a transaction within the last 12 months.

Adjusted EBITDA Bridge (no-IFRS 16) (1)

• Strong increase in Gross Profit(2) boosted by volumes expansion, also connected to Black Friday campaign. Incidence down to 22.0% (from 22.4%)
• Retail rents up, following store network and logistics platforms expansion, but reflecting a lower incidence (3.3% vs. 3.5%) thanks to Carini Retail consolidation
• Personnel costs up, pushed by acquisitions and new openings. Incidence on sales down from 8.0% to 7.8%
• Marketing costs reflecting incremental activities to promote new stores (i.e. fliers). Incidence slightly down from 2.4% to 2.3%
• Significant increase in Logistics costs led by sales volumes, the ever-increasing weighting of home deliveries, promotional campaigns which include free delivery, as well as temporary effects of Carini warehouse start-up. Incidence up to 2.8%
• Other costs up pushed by utilities, maintenance and general sales expenses. Incidence down from 3.1% to 2.9%.

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) Adjusted EBITDA is EBITDA adjusted for: (i) non-recurring expenses/(income) and (ii) the impact from the adjustment of revenues for extended warranty services net of related estimated future costs to provide the assistance service, as a result of the change in the business model for directly managed assistance services. (2) Gross Profit includes change in Business Model, as reported on slide 28.

Explaining EBITDA adjustments (no-IFRS 16)

events

relocation (ex-UniEuro) and closing costs

Non-recurring items breakdown

• No impact from Non-recurring items in Q3

Adjustments YoY evolution

• Significant decrease in 9M 2019/20 adjustments vs. 2018/19 thanks to:
  • − Minimized M&A costs related to the Carini Retail acquisition vs. DPS and Galimberti deals
  • − 9M 18/19 impacted by non-recurring costs concernig the new central logistics hub, included in relocation costs
• Change in business model impacting slightly more to reflect the first adoption of Unieuro's extended warranty internalized business model by Carini Retail stores

Adjusted Net Income Bridge (no-IFRS 16) (1)

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. P&L line items adjusted for non-recurring costs and business model change. (1) Adjusted Net Income/Loss is calculated as the Net Income (Loss) adjusted by (i) the adjustments incorporated in the Adj. EBITDA, (ii) the adjustments of the non-recurring D&A (iii) the adjustments of the non-recurring financial expenses(income) and (iv) the theoretical tax impact of these adjustments.

Financial Overview (no-IFRS 16)

Net Working Capital

• Net Financial Position boosted by strong operating cash flows, despite dividends, acquisitions and capex
• Significant decrease of Total capex despite the second biggest acquisition in Unieuro's history and ongoing investments on IT infrastructure:
  • − Ordinary capex (17.0 €m), related to store maintenance and refurbishment, ITC, digital platform improvement and store digitalization
  • − Extraordinary capex at 3.8 €m (0€ in Q3) vs. 15.1 €m in 9M 2018/19 (impacted by the new Piacenza central logistics hub)
• Net Working Capital strongly pushed by Other Working Capital items, including extended warranty accruals

Notes: Consolidated results. Unieuro 9M period ends on 30 November. Data in millions of Euro, unless otherwise stated. (1) Compared to H1 2018/19 results presentation, capex figures were restated in order to present Balance Sheet data instead of cash outflows ("Capex paid").

IFRS 16 impact

• The new standard requires to recognize in Balance Sheet all lease with a term exceeding 12 months
• Unieuro in line with the vast majority of listed companies - chose to apply this standard using the modified retrospective approach - IFRS16 C8, b), ii)
• Main impacts:
  • − Balance Sheet: recognition of an asset ("Right of Use") and the liabilities arising from the lease ("Lease Liability")
  • − P&L: replacement of Renting Costs with depreciation of Right of Use and interests on Lease Liability
• First time adoption: 1 st March 2019
• No restatement of 2018 financials according to IFRS16

What IFRS 16 is Main Effects on Unieuro's 9M 2019/20 Results (€m)

Agenda

• Highlights
• Sales Performance
• Achievements on Strategic Goals
• Financials
• Going Forward: Incorporation of Subsidiaries

Proposed Incorporation of Fully-Owned Subsidiaries

Annex

Post-IFRS 16 results

as reported in the Interim Directors' Report as at 30 November 2019

Profit & Loss (IFRS 16 impact)

9M 19/20 post IFRS16	9M 19/20 no IFRS16		Q3 19/20 post IFRS16	Q3 19/20 no IFRS16
1,759.5	1,759.5	Sales	699.9	699.9
1,759.5	1,759.5	Sales	699.9	699.9
(1,379.8)	(1,379.8)	Purchase of goods - Change in Inventory	(553.6)	(553.6)
(8.4)	(58.3)	Rental Costs	(3.0)	(19.4)
(41.4)	(41.4)	Marketing costs	(14.3)	(14.3)
(50.1)	(50.1)	Logistic costs	(18.5)	(18.5)
(49.3)	(49.9)	Other costs	(16.0)	(16.2)
(138.8)	(138.8)	Personnel costs	(47.7)	(47.7)
(4.6)	(3.3)	Other operating costs and income	(1.8)	(1.4)
87.1	37.9	Reported EBITDA	45.0	28.8
(66.7)	(21.8)	D&A	(21.9)	(7.2)
20.5	16.2	Reported EBIT	23.0	21.6
(9.9)	(2.8)	Net Interests	(3.3)	(1.0)
10.6	13.4	Reported Profit before Tax	19.7	20.7
(2.0)	(0.2)	Taxes	(2.0)	(0.8)
8.7	13.2	Reported Net Income	17.8	19.8

Balance Sheet (IFRS 16 impact)

	30 Nov. 2019 post-IFRS16	30 Nov. 2019
Trade Receivables	81.0	81.0
Inventory	518.1	518.1	(2) Current Liabilities
Tangible and Intangible Assets	556.1	116.6
Net Deferred Tax Assets and Liabilities	33.8	35.6	(3) Other Long Term Assets and Liabilities

no IFRS16 (1) Current Assets: Includes mainly Accrued Income related to rental costs, etc

Trade Payables	(663.2)	(663.2)		30 Nov. 2019 post-IFRS16	30 Nov. 2019 no IFRS16
Operating Trade Capital	(64.2)	(64.2)	Accrued expenses (mainly Extended Warranties)	(138.7)	(140.9)
Current Tax Assets	0.9	0.9	Personnel debt	(43.4)	(43.4)
Current Assets (1)	17.1	17.4	VAT debt	(20.3)	(20.3)
(2) Current Liabilities	(230.4)	(232.6)	Other	(25.6)	(25.6)
Short Term Provisions	(1.3)	(1.3)	LTIP Personnel debt	(2.5)	(2.5)
Net Working Capital	(278.0)	(279.8)	Current Liabilities	(230.4)	(232.6)

Goodwill	195.3	195.3		30 Nov. 2019 post-IFRS16	30 Nov. 2019 no IFRS16
Other Long Term Assets and Liabilities (3)	(16.8)	(16.1)	Financial assets (deposits)	2.9	2.9
Total Invested Capital	490.4	51.5	Deferred Benefit Obligation (TFR)	(12.7)	(12.7)
Net financial Debt	(411.9)	31.5	Long Term Provision for Risks	(4.4)	(4.6)
Equity	(78.5)	(83.0)	Other Provisions	(2.6)	(1.7)
Total Sources	(490.4)	(51.5)	LTIP Personnel debt	(0.0)	(0.0)
			Other Long Term Assets and Liabilities	(16.8)	(16.1)

Annex

No-IFRS 16 results and reconciliations

Profit & Loss (no-IFRS 16)

9M 19/20 no IFRS16	%	9M 18/19	%		Q3 19/20 no IFRS16	%	Q3 18/19	%
1,759.5		1,527.3		Sales	699.9		618.7
1,759.5		1,527.3		Sales	699.9		618.7
(1,379.8)	(78.4%)	(1,191.5)	(78.0%)	Purchase of goods - Change in Inventory	(553.6)	(79.1%)	(487.4)	(78.8%)
(58.3)	(3.3%)	(53.7)	(3.5%)	Rental Costs	(19.4)	(2.8%)	(18.5)	(3.0%)
(41.4)	(2.4%)	(38.1)	(2.5%)	Marketing costs	(14.3)	(2.0%)	(14.3)	(2.3%)
(50.1)	(2.8%)	(40.2)	(2.6%)	Logistics costs	(18.5)	(2.6%)	(16.4)	(2.7%)
(49.9)	(2.8%)	(47.4)	(3.1%)	Other costs	(16.2)	(2.3%)	(16.5)	(2.7%)
(138.8)	(7.9%)	(125.1)	(8.2%)	Personnel costs	(47.7)	(6.8%)	(43.8)	(7.1%)
(3.3)	(0.2%)	(3.3)	(0.2%)	Other operating costs and income	(1.4)	(0.2%)	(1.9)	(0.3%)
37.9	2.2%	28.2	1.8%	Reported EBITDA	28.8	4.1%	19.9	3.2%
5.0	0.3%	9.3	0.6%	Adjustments	0.0	0.0%	5.0	0.8%
6.7	0.4%	6.2	0.4%	Change in Business Model	2.8	0.4%	3.1	0.5%
49.6	2.8%	43.7	2.9%	Adjusted EBITDA	31.6	4.5%	28.0	4.5%
(21.8)	(1.2%)	(18.6)	(1.2%)	D&A	(7.2)	(1.0%)	(6.3)	(1.0%)
(2.8)	(0.2%)	(3.2)	(0.2%)	Financial Income - Expenses	(1.0)	(0.1%)	(1.0)	(0.2%)
25.1	1.4%	21.8	1.4%	Adjusted Profit before Tax	23.5	3.4%	20.7	3.3%
(0.2)	(0.0%)	0.5	0.0%	Taxes	(0.8)	(0.1%)	0.6	0.1%
(1.0)	(0.1%)	(1.3)	(0.1%)	Fiscal impact of non-recurring items	(0.2)	(0.0%)	(0.7)	(0.1%)
23.9	1.4%	21.0	1.4%	Adjusted Net Income	22.4	3.2%	20.6	3.3%
(5.0)	(0.3%)	(9.3)	(0.6%)	Adjustments	(0.0)	(0.0%)	(5.0)	(0.8%)
0.0	--	(0.3)	(0.0%)	Non-recurring D&A	0.0	--	--	--
0.0	--	1.5	0.1%	Non-recurring financial (expenses)/income	0.0	--	0.0	--
(6.7)	(0.4%)	(6.2)	(0.4%)	Change in Business Model	(2.8)	(0.4%)	(3.1)	(0.5%)
1.0	0.1%	1.3	0.1%	Fiscal impact of non-recurring items	0.2	0.0%	0.7	0.1%
13.2	0.8%	7.9	0.5%	Reported Net Income	19.8	2.8%	13.2	2.1%

9M Profit & Loss Adjustments by Line Item (no-IFRS 16)

	9M 19/20 Reported EBITDA	9M 19/20 Adjustments	9M 19/20 Adjusted EBITDA	9M 18/19 Reported EBITDA	9M 18/19 Adjustments	9M 18/19 Adjusted EBITDA	Δ 9M Adjusted EBITDA
Gross Profit	379.7	0.0	379.7	335.8	0.0	335.8	43.9
Change in Business Model		6.7	6.7		6.2	6.2	0.5
Gross profit including change in Business Model	379.7	6.7	386.4	335.8	6.2	342.0	44.4
Rental Costs	(58.3)	0.3	(58.0)	(53.7)	0.9	(52.8)	(5.2)
Marketing costs	(41.4)	1.3	(40.1)	(38.1)	1.1	(37.0)	(3.1)
Logistics costs	(50.1)	0.9	(49.2)	(40.2)	1.5	(38.7)	(10.5)
Other costs	(49.9)	1.6	(48.3)	(47.4)	3.5	(43.9)	(4.4)
Personnel costs	(138.8)	0.9	(137.9)	(125.1)	2.4	(122.6)	(15.3)
Other operating costs and income	(3.3)	(0.1)	(3.4)	(3.3)	(0.1)	(3.4)	(0.0)
Total Costs	(341.7)	5.0	(336.7)	(307.6)	9.3	(298.3)	(38.4)
EBITDA	37.9	11.7	49.6	28.2	15.5	43.7	6.0

Q3 Profit & Loss Adjustments by Line Item (no-IFRS 16)

	Q3 19/20 Reported EBITDA	Q3 19/20 Adjustments	Q3 19/20 Adjusted EBITDA	Q3 18/19 Reported EBITDA	Q3 18/19 Adjustments	Q3 18/19 Adjusted EBITDA	Δ Q3 Adjusted EBITDA
Gross Profit	146.3	0.0	146.3	131.3	0.0	131.3	15.0
Change in Business Model		2.8	2.8		3.1	3.1	(0.3)
Gross profit including change in Business Model	146.3	2.8	149.1	131.3	3.1	134.4	14.7
Rental Costs	(19.4)	(0.1)	(19.5)	(18.5)	0.8	(17.7)	(1.8)
Marketing costs	(14.3)	0.0	(14.3)	(14.3)	0.9	(13.4)	(0.9)
Logistics costs	(18.5)	0.0	(18.5)	(16.4)	1.1	(15.3)	(3.1)
Other costs	(16.2)	(0.1)	(16.3)	(16.5)	1.2	(15.3)	(1.0)
Personnel costs	(47.7)	0.2	(47.6)	(43.8)	0.9	(42.9)	(4.7)
Other operating costs and income	(1.4)	(0.0)	(1.4)	(1.9)	0.0	(1.8)	0.4
Total Costs	(117.5)	0.0	(117.4)	(111.4)	5.0	(106.4)	(11.1)
EBITDA	28.8	2.8	31.6	19.9	8.1	28.0	3.6

Balance Sheet (no-IFRS 16)

	30 Nov. 2019 no IFRS16	28 Feb. 2019	(1) Current Assets: Includes mainly Accrued Income related to rental costs, etc
Trade Receivables	81.0	41.3
Inventory	518.1	362.3	(2) Current Liabilities
Trade Payables	(663.2)	(468.5)		30 Nov. 2019 no IFRS16
Trade Working Capital	(64.2)	(64.8)	Accrued expenses (mainly Extended Warranties)	(140.9)
Current Tax Assets	0.9	2.1	Personnel debt	(43.4)
Current Assets (1)	17.4	19.8	VAT debt	(20.3)
Current Liabilities (2)	(232.6)	(190.3)	Other	(25.6)
Short Term Provisions	(1.3)	(1.3)	LTIP Personnel debt	(2.5)
Net Working Capital	(279.8)	(234.6)	Current Liabilities	(232.6)
Tangible and Intangible Assets	116.6	113.3
Net Deferred Tax Assets and Liabilities	35.6	31.5	(3) Other Long Term Assets and Liabilities
Goodwill	195.3	178.0		30 Nov. 2019 no IFRS16
Other Long Term Assets and Liabilities (3)	(16.1)	(17.7)	Financial assets (deposits, leases)	2.9
Total Invested Capital	51.5	70.4	Deferred Benefit Obligation (TFR)	(12.7)
Net financial Debt	31.5	20.5	Long Term Provision for Risks	(4.6)
Equity	(83.0)	(90.9)	Other Provisions	(1.7)
Total Sources	(51.5)	(70.4)	LTIP Personnel debt	(0.0)

no IFRS16 28 Feb. 2019 (1) Current Assets: Includes mainly Accrued Income related to rental costs, etc

Trade Payables	(663.2)	(468.5)		30 Nov. 2019 no IFRS16	28 Feb. 2019
Trade Working Capital	(64.2)	(64.8)	Accrued expenses (mainly Extended Warranties)	(140.9)	(126.3)
Current Tax Assets	0.9	2.1	Personnel debt	(43.4)	(35.4)
Current Assets (1)	17.4	19.8	VAT debt	(20.3)	(14.7)
Current Liabilities (2)	(232.6)	(190.3)	Other	(25.6)	(13.9)
Short Term Provisions	(1.3)	(1.3)	LTIP Personnel debt	(2.5)
Net Working Capital	(279.8)	(234.6)	Current Liabilities	(232.6)	(190.3)

Goodwill	195.3	178.0		30 Nov. 2019 no IFRS16	28 Feb. 2019
Other Long Term Assets and Liabilities (3)	(16.1)	(17.7)	Financial assets (deposits, leases)	2.9	2.5
Total Invested Capital	51.5	70.4	Deferred Benefit Obligation (TFR)	(12.7)	(11.0)
Net financial Debt	31.5	20.5	Long Term Provision for Risks	(4.6)	(6.0)
Equity	(83.0)	(90.9)	Other Provisions	(1.7)	(1.7)
Total Sources	(51.5)	(70.4)	LTIP Personnel debt	(0.0)	(1.5)
			Other Long Term Assets and Liabilities	(16.1)	(17.7)

Cash Flow Statement (no-IFRS 16)

9M 19/20 no IFRS16	9M 18/19		Q3 19/20 no IFRS16	Q3 18/19
37.9	28.2	Reported EBITDA	28.8	19.9
(2.2)	(0.7)	Taxes Paid	(2.2)	-
(2.0)	(2.1)	Interests Paid	(0.5)	(0.5)
37.1	40.4	Change in NWC	59.9	66.3
0.9	0.8	Change in Other Assets and Liabilities	0.6	0.5
71.8	66.5	Reported Operating Cash Flow	86.6	86.2
(13.8)	(27.3)	Purchase of Tangible Assets	(4.1)	(12.6)
(4.7)	(4.8)	Purchase of Intangible Assets	(1.4)	(2.3)
(0.8)	8.8	Change in capex payables	-	-
(11.0)	(5.9)	Acquisitions	-	(2.5)
41.4	37.3	Levered Free Cash Flow	81.2	68.9
4.0	6.1	Cash effect of adjustments	(0.2)	3.5
14.5	12.6	Non recurring investments	0.0	5.1
(2.5)	(0.8)	Other non recurring cash flows	(1.0)	-
57.3	55.1	Adjusted Levered Free Cash Flow	80.0	77.5
(1.4)	(5.3)	Cash effect of adjustments	1.2	(3.5)
(14.5)	(12.6)	Non recurring investments	(0.0)	(5.1)
(21.4)	(20.0)	Dividend/Change in Shareholders Debt	-	-
(8.2)	-	Acquisition Debt	-	-
(0.9)	0.3	Other Changes	(0.2)	(0.5)
11.0	17.5	Δ Net Financial Position	80.9	68.3

Net Financial Debt (no-IFRS 16)

	30 Nov. 2019	28 Feb. 2019
Short-Term Bank Debt	0.0	(3.0)
Long-Term Bank Debt	(46.0)	(40.5)
Bank Debt	(46.0)	(43.5)
Debt To Other Lenders	(9.5)	(10.6)
Acquisition Debt	(17.9)	(9.9)
Other Financial Debt	(27.4)	(20.5)
Cash and Cash Equivalents	104.8	84.5
Net Financial Debt	31.5	20.5

33

NEXT EVENTS

2 nd Italian Mid Cap Conference (Mediobanca) Milano, 16 January 2020

4th Italian Day in Frankfurt (Alantra) Frankfurt, 28 January 2020

2019/20 Preliminary Revenues 19 March 2020

STAR Conference Milan, 25/26 March 2020

CONTACTS

Andrea Moretti Investor Relations Director

+39 0543 776769 +39 335 5301205

amoretti@unieuro.com investor.relations@unieuro.com

***

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