Informazione Regolamentata n. 1944-51-2020		Data/Ora Ricezione 10 Luglio 2020 17:48:02
Societa'	:	Unieuro S.p.A.
Identificativo Informazione Regolamentata	:	134858
Nome utilizzatore	:	UNIEURON04 - Moretti
Tipologia	:	3.1; 2.2
Data/Ora Ricezione	:	10 Luglio 2020 17:48:02
Data/Ora Inizio Diffusione presunta	:	10 Luglio 2020 17:48:03
Oggetto	:	Unieuro S.p.A.: Financial soundness and very encouraging results in the first quarter of 2020/21, impacted by the Covid-19 emergency
Testo del comunicato

Vedi allegato.

PRESS RELEASE

UNIEURO S.P.A.: FINANCIAL SOUNDNESS AND VERY ENCOURAGING RESULTS IN THE FIRST QUARTER OF 2020/21, IMPACTED BY THE COVID-19 EMERGENCY

March and April revenues affected by the Covid-19 emergency (-30% compared to the same period in 2019), buoyant recovery in May (+20%) with the start of "Phase 2"
Revenues at 428.9 million Euro, down 13.4% compared to 495.3 million Euro in the first quarter of the previous year
Lockdown effect on physical channels, partially offset by the boom (+142.8%) in e-commerce, which rose to 28.7% of revenues
Limited impact of the emergency on profitability thanks to management timely actions: EBIT Adjusted¹ negative by €11.1 million (-€2.5 million in Q1 2019/20) in the seasonally weakest quarter of the year
Corporate soundness intact: cash absorption² of €40.1 million in the quarter, stable year on year, and net financial debt³ contained at €11.2 million (€39.1 million as of 31 May 2019)
Positive signs from the June trend, although risks related to Covid and the macroeconomic situation call for caution

Forlì, July 10, 2020 - The Board of Directors of Unieuro S.p.A. (MTA: UNIR), the Italian leader in the retail market of consumer electronics and household appliances, met today chaired by Stefano Meloni to examine and approve the Interim Report on Operations as of 31 May 2020.

It should be noted that, one year after the first adoption of IFRS 16, the transitional phase during which Unieuro's financial reporting was based on adjusted data and in continuity with the previous accounting standard IAS 17 and the interpretations thereof has ended. From the quarter under review, in line with practices that were gradually established among retailers listed on international markets, the Company will therefore comment only on the economic figures after the application of the above accounting standard, focusing on Adjusted EBIT and Adjusted Net Profit. On the other hand, net debt and cash flow will still not include the notional component linked to the application of IFRS 16.

The quarter March-May 2020, the first of Unieuro's 2020/21 financial year, featured the unpredictable spread of the Covid-19 epidemic, which had a negative impact on revenues and profitability, partially offset by the benefits of prompt managerial actions⁴ .

All data contained in this press release are consolidated data. The scope of consolidation includes the Parent Company Unieuro S.p.A., the wholly-owned subsidiary Monclick S.r.l. (starting on 1 June 2017) and the wholly-owned subsidiary Carini Retail S.r.l. (starting on 1 March 2019).

Economic and financial figures reflect the adoption of IFRS 16 accounting principle, which came into force on 1st January 2019. Unieuro presents and comments on such measures, unless otherwise indicated.

In a completely unprecedented and exceptional context, the drop in revenues was limited to 13.4%, while the e-commerce boom (+142.8%) made up for the dramatic impact of the lockdown on brick-and-mortar stores, both direct and indirect, in March and April. Profitability, which in itself was already not very significant due to the seasonal nature of the business, was affected by the repercussions of the crisis, but it also benefited from the timely protective actions taken by Management⁴ , as a result of which EBIT Adjusted¹ registered a limited decrease, ending up at -€11.1 million from -€2.5 million. Adjusted net profit⁵ came to -€13.8 million.

Cash requirements² , amounting to €40.1 million, were stable year-on-year thanks to tight working capital control and a swift reduction in operating costs, enabling Unieuro to record a negative net financial position of only €11.2 million at the end of May.

"We are utterly proud of how Unieuro, its 5,000 employees, suppliers, partners and even shareholders have responded with determination and promptness to the threats that have made the quarter just ended possibly the most critical time in the company's more than eighty years of heritage.

Thanks to this sense of purpose and a long-term strategic approach that proved successful, we were able to contain the effects of the Covid-19 emergency and close the quarter with unhoped-for results and enviable financial and equity soundness.

With all due caution, we look forward to the coming months with confidence, reassured by the very encouraging data for May and June and the positive feedback from customers on the new omnichannel services, designed to make the shopping experience safe and rewarding even at times of Coronavirus".

Giancarlo Nicosanti Monterastelli, CEO of Unieuro.

Revenues for the 1st quarter 2020/21

In the quarter ended 31 May 2020, Unieuro posted revenues of €428.9 million, down by 13.4% on the €495.3 million of the previous year, thus reporting a mild decline of €66.3 million.

The trend in revenues was clearly influenced by the Covid-19 emergency, which prompted on the one hand the adoption by the authorities of heavy restrictions on the free movement of people and on the other a swift change in consumer purchasing behaviour, in the light of the new social distancing requirements.

Traffic and revenues from the network of stores, both direct and indirect, were therefore penalized, whereas e-commerce benefited greatly from the ensuing circumstances, thus allowing Unieuro - with its well-established digital presence - to at least partially offset the drop in sales in physical stores.

Overall, the months of March and April thus recorded a cumulative loss of revenues equal to 30% compared to the same two-month period in 2019. With the start of the socalled "Phase 2" and thanks to the measures taken in the meantime in terms of store safety and customer service, the month of May featured a buoyant rebound year on year, equal to about +20%.

Overall, the trend in like-for-like revenues⁶ - i.e. the comparison of sales with those in the same period last year based on the same scope of operations - ended up with a reduction of 9.5%. Excluding from the scope of analysis the stores adjacent to newly opened stores, and therefore not included in the like-for-like computation, like-for-like sales displayed a lower decrease of 5.5%.

			Changes
(In millions of Euro and as a percentage of revenues)	31 May 2020	%	31 May 2019	%		%
Retail	225.1	52.5%	347.2	70.1%	(122.1)	(35.2%)
Online	123.0	28.7%	50.7	10.2%	72.3	142.8%
Indirect	49.3	11.5%	59.9	12.1%	(10.6)	(17.7%)
B2B	28.5	6.6%	29.0	5.9%	(0.5)	(1.8%)
Travel	3.1	0.7%	8.5	1.7%	(5.5)	(63.9%)
Total revenues	428.9	100.0%	495.3	100.0%	(66.3)	(13.4%)

Revenues by sales channel

The Retail channel (52.5% of total revenues) - consisting of 239 direct stores located in areas deemed commercially strategic and characterized by different sizes in terms of surface area - posted a decline of 35.2%, to € 225.1 million against € 347.2 million recorded in the same period of the previous year. In addition to the voluntary closure of the network from 14 to 29 March, the channel suffered a dramatic drop in traffic due to restrictions on the movement of people and social distancing regulations, which took a heavy toll especially on stores located outside city centres, in large shopping malls and in shopping parks. Starting from April, the easing of restrictions and the actions taken by Unieuro to support the customer experience in an omnichannel perspective, have led to an

improvement in retail sales, which in May were higher than in the same month in 2019.

The Online channel (28.7% of total revenues) posted extraordinary growth of 142.8%, pushing revenues to €123 million compared to €50.7 million in the same period of the previous year. This downright exceptional performance is the result of both the emergency situation that has arisen - which has led customers to favour e-commerce over physical stores - as well as of the prompt response by Unieuro, which tackled the lockdown by tactically refocusing its marketing activities, both mainstream and digital, on the Online channel. Its dual presence on the web, guaranteed by two well-known and distinct brands such as Unieuro and Monclick, has further contributed to the success achieved.

The Indirect channel (11.5% of total revenues) - which includes sales to the network of affiliated stores and revenues generated in the segment of Mass Merchandisers through partnerships with leading industry operators, for a total of 259 stores - reported revenues of 49.3 million Euros, a limited reduction of 17.7% compared to 59.9 million in the same period of the previous year. Although the restrictive measures imposed by the authorities had a negative impact on the turnover and traffic of the affiliated stores too, the distinctive features of these stores - small to medium size, focused on proximity services and mostly located in central-southern Italy - resulted in a significant resilience of the business, which has gradually normalized with the start of the so-called "Phase 2".

The Business-to-Business channel (6.6% of total revenues) - which caters to business customers, including foreign customers, operating in sectors other than that of Unieuro, such as hotels and banks, as well as operators purchasing electronic products to be distributed to their regular customers or to employees for loyalty points, prize contests, or incentive plans (referred to as B2B2C segment) - reported sales of 28.5 million euros, down 1.8% compared to 29 million euros in the same period of the previous year. By its very nature, the channel was only marginally affected by the effects of the pandemic.

Lastly, the Travel channel (0.7% of total revenues) - made up of 11 directly operated stores located at main public transport hubs such as airports and railway or metro stations - recorded a sharp decrease in revenues to Euro 3.1 million (-63.9%). The performance was inevitably affected by the collapse of air traffic brought about by the pandemic and the total or partial closure - still in force - of some airports.

Revenues by product category⁷

			Changes
(In millions of Euro and as a percentage of revenues)	31 May 2020	%	31 May 2019	%	Δ	%
Grey	223.6	52.1%	243.0	49.1%	(19.4)	(8.0%)
White	109.8	25.6%	130.6	26.4%	(20.7)	(15.9%)
Brown	57.6	13.4%	80.0	16.2%	(22.4)	(28.0%)
Other products	19.9	4.6%	19.5	3.9%	0.3	1.7%
Services	18.0	4.2%	22.2	4.5%	(4.1)	(18.7%)
Total revenues	428.9	100.0%	495.3	100.0%	(66.3)	(13.4%)

The category of Grey Goods (52.1% of total revenues) - i.e. phones, tablets, information technology, accessories for phones, cameras and all wearable technology products – reported revenues of 223.6 million euros, a limited drop of 8% compared to 243 million euros in the same period of the previous year. In spite of the decline, the category benefited from strong underlying consumption trends, which came to being with distant working and learning in reaction to the epidemic and, in general, arising from the need to connect and communicate during a long forced isolation.

The category of White Goods (25.6% of total revenues) - comprising major domestic appliances (MDA), such as washing machines, dryers, refrigerators or freezers, and stoves, small domestic appliances (SDA), such as vacuum cleaners, food mixers, coffee machines, as well as the air conditioning segment - generated sales of 109.8 million Euros, down 15.9% compared to 130.6 million in the same period of the previous year. The performance, slightly lower than that of turnover as a whole, was affected by the drop in sales of large household appliances such as washing machines, refrigerators and dryers, whose purchase is more frequently linked to in-store experience. Conversely, small appliances have benefited from the needs arisen during the lockdown, including domestic food preparation and household cleaning.

The category of Brown goods (13.4% of total revenues) - which include television sets and related accessories, audio devices, smart TV devices and car accessories, as well as storage devices - recorded total revenues of €57.6 million, down 28% on the €80 million of the same period of the previous year. The decline mainly affected sales of TV sets, which were impacted, among other things, by the postponement of sports events as a result of Covid-19.

The category of Other products (4.6% of total revenues) - which include sales in the entertainment sector and sales of other products not included in the consumer electronics market, such as hover boards and bicycles - displayed a countertrend increase in revenues, up 1.7% to € 19.9 million. The entertainment segment, including consoles and

video games, drove sales in a phase characterised by the search for maximum home comfort.

Lastly, a reduction of 18.7% to €18 million was noted in the category of Services (4.2% of total revenues); the reduction was smaller than that reported by the physical channels, and it was mostly affected by the drop in sales of warranty extensions.

Operating profitability

	Period ended							Changes
(In millions and as a percentage of	31 May 2020			31 May 2019
revenues )	Adjusted amounts	%	Adjustments	Adjusted amounts	%	Adjustments	Δ	%
Sales revenues	428.9			495.3			(66.3)	(13.4%)
Purchase of goods and Change in inventories	(349.1)	(81.4%)	0.0	(386.2)	(78.0%)	0.0	37.2	(9.6%)
Logistics costs	(16.8)	(3.9%)	0.0	(13.7)	(2.8%)	0.7	(3.1)	22.9%
Marketing costs	(8.1)	(1.9%)	0.1	(12.4)	(2.5%)	1.1	4.3	(34.4%)
Other costs	(12.1)	(2.8%)	0.0	(17.8)	(3.6%)	1.8	5.7	(32.2%)
Personnel costs	(30.3)	(7.1%)	0.1	(46.1)	(9.3%)	0.6	15.8	(34.2%)
Other operating income and costs	(1.3)	(0.3%)	(0.0)	(1.1)	(0.2%)	(0.0)	(0.2)	16.3%
Revenues from extended warranty services net of related estimated future costs to provide the assistance service - change in the business model for directly managed assistance services	0.5	0.1%	0.5	1.9	0.4%	1.9	(1.5)	(75.9%)
Adjusted EBITDA	11.6	2.7%	0.7	19.8	4.0%	6.2	(8.2)	(41.4%)
Amortisation, depreciation and write-downs of fixed assets	(22.7)	(5.3%)	0.0	(22.3)	(4.5%)	0.1	(0.4)	1.9%
Adjusted EBIT1	(11.1)	(2.6%)	0.7	(2.5)	(0.5%)	6.2	(8.6)	346.4%

In a traditionally soft quarter due to the well-known seasonal trends, the Covid-19 emergency further impacted profitability, pushing Adjusted EBIT¹ to -€11.1 million, down €8.6 million on the -€2.5 million recorded in the first quarter of the previous year. Adjusted EBIT margin was down to -2.6%.

The overall impact of the tough economic situation was therefore relatively limited, thanks to the measures taken by Unieuro to mitigate its effects. These steps offset the gross margin performance as well as the increase in logistics costs, both influenced by an exceptionally unfavourable channel and product mix due to the emergency environment.

⁶

In detail, the recourse to social safety nets for almost all of the company's personnel and the plans to use up employee's holidays and leave time brought about a noteworthy reduction in personnel costs, which fell from 9.3% in the first quarter of 2019/20 to the current 7.1%.

Other costs benefited from the renegotiation of rents, generating benefits of €4.5 million, and the reduction in operating costs arising from utilities and store maintenance. Despite the increase in payment fees linked to the e-commerce boom, the incidence of this item has dropped from 3.6% to 2.8%.

Marketing costs, which fell from 2.5% to 1.9% of revenues, benefited from the decision to temporarily focus communication efforts on the digital flyer, which is less expensive than the traditional paper flyer that involves production and distribution costs.

Amortization, depreciation and write-downs (€22.7 million), which include the component relating to the ex-IFRS 16 rights of use assets, amounting to €15.4 million, were basically in line with the previous year.

	Period ended							Changes
(In millions and as a percentage of revenues )	31 May 2020			31 May 2019
	Adjusted amounts	%	Adjustments	Adjusted amounts	%	Adjustments	Δ	%
Adjusted EBIT1	(11.1)	(2.6%)	0.7	(2.5)	(0.5%)	6.2	(8.6)	346.4%
Financial income and expenses	(3.6)	(0.8%)	0.0	(3.1)	(0.6%)	0.0	(0.5)	16.3%
Income taxes	0.9	0.2%	(0.1)	(0.0)	0.0%	(0.5)	0.9	1963.0%
Adjusted Profit/Loss for the period5	(13.8)	(3.2%)	0.6	(5.6)	(1.1%)	5.7	(8.2)	146.9%

Adjusted Net income⁵

In the quarter, Unieuro's Adjusted net income⁵ deteriorated year-on-year by €8.2 million, from -€5.6 million to -€13.8 million. The seasonality of the business, which reports higher revenues and profits in the second half of the year to the detriment of the first half, was compounded by the effects of the economic situation, mainly reflected in the Adjusted EBIT¹ performance.

Net financial charges of €3.6 million (€2.6 million of which relating to IFRS 16) were up by €0.5 million, mainly due to the increase of the above-mentioned IFRS 16 component.

⁷

Investments

Investments in the quarter amounted to 2.9 million Euros against 23.7 million Euros in the same period of last year, which included the purchase for 17.4 million Euros⁸ of Carini Retail S.r.l. and the investments needed to integrate its 12 Sicilian shops into the Unieuro network.

Capex was affected by the temporary downsizing of investments in the stores network, a decision aimed at restricting spending in the face of the emergency, while the purchase of new hardware, software, licenses and developments on applications continued with a view to improving the technological infrastructure.

Net financial position³

At the end of the first quarter 2020/21, Unieuro recorded a negative Net Financial Position 3 of €11.2 million, compared to a surplus of €29.6 million as of 29 February 2020 and a negative €39.1 million as of 31 May 2019.

The cash flow trend, which resulted in a negative Adjusted Free Cash Flow² of €40.1 million in the quarter (roughly in line with the €39.7 million absorbed in Q1 2019/20), was primarily impacted by the seasonal nature of the business, which leads to significant capital absorption in the first half of the year followed by a strong cash flow generation in the second half.

The Covid-19 emergency also had an impact on the quarter, encouraging the adoption of countermeasures in terms of strict inventory management and the renegotiation of payment terms with the main trading partners. The success achieved in optimizing working capital, combined with lower rental payments, thus balanced out the lower cash-ins linked to the economic situation.

Covid-19 emergency update

With the start of the so-called "Phase 2", featuring milder restrictions and a gradual but still incomplete return to normal, revenues have experienced sharp acceleration. Starting from May 4, with the almost full reopening of the stores, Unieuro has therefore reported very positive levels of turnover both on the physical network and, once again, online. This trend continued in June.

Precisely in June, taking up the challenge of a retail scenario that is still complex and constantly evolving, Unieuro launched an important project aimed at reshaping the

customer experience in an omnichannel perspective, supporting store traffic thanks to the engagement opportunities generated by the e-commerce channel.

The Company has thus launched a project roadmap that will lead to the swift provision of new digital services of an outright omnichannel nature, the first of which - called aTUperTU and filaVIA - are already active in all stores and are aimed at rationalising in-store customer flows, at a time when social distancing continues to be key.

On the profitability front, the accurate monitoring of costs started in the first quarter is still ongoing. While the renegotiation of rents and the rescheduling of payments are still in progress at the property management level, the resumption of business since May has made it unnecessary to extend the use of social safety nets, although permitted by a new government decree.

Finally, the financial situation remains largely under control, as it still benefits from the careful management of working capital and the wide availability of credit lines still undrawn.

* * *

Conference call

In light of the extraordinary events that occurred in Q1 2020/21, Unieuro informs that at 10.00 am (CET) on Monday, 13 July 2020, a conference call will exceptionally be held by the Management to present the Company's results for the period.

To join the conference call, please dial one of the following numbers:

	Analysts and investors:	Italy: +39 02 805 88 11 UK: + 44 121 281 8003 USA: +1 718 7058794
	Media:	+39 02 8058827

A slide presentation will be available for download from Unieuro's corporate website

for download at the same link, starting from the second day following the event.

before the start of the conference call. A digital playback of the conference call, both in Italian and in English, will be available

www.unieurospa.com, section Investors Relations / Results and Presentations, shortly

* * *

Unieuro S.p.A. has chosen to use the "eMarket SDIR" and "eMarket STORAGE" platforms managed by Spafid Connect S.p.A., with offices at Foro Buonaparte 10, Milan, for the transmission, storage and filing of Regulatory Information made public.

Mr Italo Valenti, the manager responsible for preparing the company's accounting documents, hereby declares that, pursuant to and in accordance with Article 154-bis, paragraph 2, of Legislative Decree No. 58 of 1998, the information contained in this press release matches the Company's documentation, books and accounting records.

* * *

This press release may contain forecasts on Unieuro's future events and results that are based on current expectations, estimates and projections about the industry and on the reasonable judgement of the management. Evidently, these elements have a component of risk and uncertainty because they depend on the occurrence of future events. It should be noted that the actual results might deviate significantly from those announced, owing to a range of factors including: global economic conditions, the impact of competition, political, economic and regulatory developments in Italy.

* * *

Unieuro S.p.A.

Unieuro is the Italian leader in the distribution of consumer electronics and household appliances, thanks to an omnichannel approach that integrates directly operated stores (about 250), affiliated stores (about 260) and the unieuro.it digital platform. The company is based in Forlì, has a central logistics hub in Piacenza and has a staff of about 5,000 employees. Listed on the STAR segment of the Italian Stock Exchange since 2017, Unieuro reported revenues of Euro 2.4 billion in the fiscal year ended at 29 February 2020. Corporate website: www.unieurospa.com

LinkedIn: www.linkedin.com/company/unieuro

Contacts:

Investor Relations Media Relations

Andrea Moretti iCorporate Investor Relations & Corporate Communications Director

+39 335 5301205 Sonia Hason +39 0543 776769 +39 331 8394343

[email protected] [email protected] [email protected]

Arturo Salerni +39 335 1222631

Summary tables:

Income statement

(in millions of Euro)

Adjusted figures	Q1 20/21		Q1 19/20	% change

Sales	428.9	100.0%	495.3	100.0%	(13.4%)
Purchase of goods - Change in Inventory	(348.6)	(81.3%)	(384.3)	(77.6%)	(9.3%)
Gross profit	80.3	18.7%	111.0	22.4%	(27.6%)
Personnel costs	(30.3)	(7.1%)	(46.1)	(9.3%)	(34.2%)
Logistic costs	(16.8)	(3.9%)	(13.7)	(2.8%)	22.9%
Marketing costs	(8.1)	(1.9%)	(12.4)	(2.5%)	(34.4%)
Other costs	(12.1)	(2.8%)	(17.8)	(3.6%)	(32.2%)
Other operating costs and income	(1.3)	(0.3%)	(1.1)	(0.2%)	16.3%
EBITDA	11.6	2.7%	19.8	4.0%	(41.4%)
D&A	(22.7)	(5.3%)	(22.3)	(4.5%)	1.9%
EBIT	(11.1)	(2.6%)	(2.5)	(0.5%)	346.4%
Financial Income - Expenses	(3.6)	(0.8%)	(3.1)	(0.6%)	16.3%
Adjusted Profit before Tax	(14.7)	(3.4%)	(5.5)	(1.1%)	164.4%
Taxes	0.9	0.2%	(0.0)	(0.0%)	(1963.0%)
Net Income	(13.8)	(3.2%)	(5.6)	(1.1%)	146.9%

Balance sheet

(in millions of Euro)

	31 May 2020	29 Feb. 2020
Trade Receivables	52.0	51.3
Inventory	304.5	369.8
Trade Payables	(384.8)	(479.6)
Trade Working Capital	(28.3)	(58.5)

Current Tax Assets	(1.2)	(1.4)
Current Assets	13.9	23.9
Current Liabilities	(213.5)	(221.4)
Short Term Provisions	(1.2)	(1.2)
Net Working Capital	(230.3)	(258.7)

Tangible and Intangible Assets	107.9	111.9
Right of Use	468.9	478.3
Net Deferred Tax Assets and Liabilities	35.7	35.2
Goodwill	195.2	195.2
Other Long Term Assets and Liabilities	(17.4)	(17.7)
TOTAL INVESTED CAPITAL	560.0	544.2

Net Financial Debt	(11.2)	29.6
Lease liabilities	(466.6)	(477.6)
Net Financial Debt (IFRS 16)	(477.8)	(448.0)

Equity	(82.2)	(96.2)

TOTAL SOURCES	(560.0)	(544.2)

Cashflow statement

in millions of Euro):

	Q1 20/21	Q1 19/20	% change

Reported EBITDA	10.9	13.6	(19.7%)
Taxes Paid	-	-	0.0%
Interests Paid	(2.8)	(2.7)	1.6%
Change in NWC	(25.0)	(34.0)	(26.5%)
Change in Other Assets and Liabilities	0.1	0.5	(73.7%)
Reported Operating Cash Flow	(16.7)	(22.7)	(26.1%)
Purchase of Tangible Assets	(1.5)	(5.3)	(71.2%)
Purchase of Intangible Assets	(1.4)	(1.0)	33.2%
Change in capex payables	(6.7)	(0.5)	1116.4%
Acquisitions	(6.0)	(6.5)	(7.5%)
Free Cash Flow	(32.3)	(36.0)	(10.3%)
Cash effect of adjustments	0.2	2.1	(91.4%)
Non recurring investments	6.0	6.5	(7.6%)
Other non recurring cash flows	(0.1)	-	(100.0%)
Adjusted Free Cash Flow (IFRS 16)	(26.3)	(27.5)	(4.3%)
Lease Repayment	(13.8)	(12.3)	12.8%
Adjusted Free Cash Flow	(40.1)	(39.7)	1.0%
Cash effect of adjustments	(0.0)	(2.1)	(98.0%)
Non recurring investments	(6.0)	(6.5)	(7.6%)
Dividends	-	-	0.0%
Acquisition Debt	6.0	(10.9)	(155.2%)
Other Changes	(0.7)	(0.5)	45.9%
Δ Net Financial Position	(40.8)	(59.6)	(31.5%)

³ Net debt (cash), or Net financial position, is financial debt – not including Lease liabilities (IFRS 16) – net of cash and cash equivalents.

⁴ See Unieuro's press releases issued on 13th March, 18th March, 30th March, 14th April and 6th May 2020.

⁵ Adjusted Net Income is calculated as Net Income adjusted for (i) the adjustments incorporated in the Consolidated Adjusted EBIT, (ii) the adjustments of the non-recurring financial expenses/(income) and (iii) the theoretical tax impact of these adjustments.

⁶ Growth of like-for-like Revenues is calculated by including: (i) retail stores and travel agencies in operation for at least one full year at the end of the reference period, after taking into account stores affected by discontinued operations in a significant manner (e.g. temporary closures and major refurbishments) and (ii) the entire online channel.

7 The segmentation of sales by product category takes place on the basis of the classification adopted by the main sector experts. Note therefore that the classification of revenues by category is revised periodically in order to guarantee the comparability of Group data with market data.

⁸ Net of Identified Liabilities amounting to 1.9 €m.

¹ Adjusted EBIT is EBIT adjusted for: (i) non-recurring expenses/(income), (ii) depreciation, amortisation and non-recurring writedowns, and (iii) 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 The cash flow trend is measured by the Adjusted Free Cash Flow, defined as cash flow generated/absorbed by operating activities net of investment activities inclusive of financial expenses and lease flows and adjusted for non-recurring investments and other nonrecurring operating flows and including adjustments for non-recurring expenses (income) and their non-cash component and the related tax impact.

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Unieuro Earnings Release 2020

4262_10-q_2020-07-10_41b8f9ed-acb9-48ae-b4ad-7bbd11595e13.pdf

PRESS RELEASE

UNIEURO S.P.A.: FINANCIAL SOUNDNESS AND VERY ENCOURAGING RESULTS IN THE FIRST QUARTER OF 2020/21, IMPACTED BY THE COVID-19 EMERGENCY

Revenues for the 1st quarter 2020/21

Revenues by sales channel

Revenues by product category⁷

Operating profitability

Adjusted Net income⁵

Investments

Net financial position³

Covid-19 emergency update

Conference call

Unieuro S.p.A.

Summary tables:

Income statement

Balance sheet

Cashflow statement

AI assistant

Unieuro — Earnings Release 2020

4262_10-q_2020-07-10_41b8f9ed-acb9-48ae-b4ad-7bbd11595e13.pdf

PRESS RELEASE

UNIEURO S.P.A.: FINANCIAL SOUNDNESS AND VERY ENCOURAGING RESULTS IN THE FIRST QUARTER OF 2020/21, IMPACTED BY THE COVID-19 EMERGENCY

Revenues for the 1st quarter 2020/21

Revenues by sales channel

Revenues by product category7

Operating profitability

Adjusted Net income5

Investments

Net financial position3

Covid-19 emergency update

Conference call

Unieuro S.p.A.

Summary tables:

Income statement

Balance sheet

Cashflow statement

More from Unieuro

Unieuro Earnings Release 2020

Revenues by product category⁷

Adjusted Net income⁵

Net financial position³