Unieuro S.p.A.: Revenues up 14% in the first nine months 2021/22. Post-Covid normalisation of margins and cash generation continues

CORPORATE PRESS RELEASE

UNIEURO S.P.A.: REVENUES UP 14% IN THE FIRST NINE MONTHS 2021/22

POST-COVID NORMALIZATION OF MARGINS AND

CASH GENERATION CONTINUES

• Revenues in the nine months ended 30 November 2021 at Euro 2,154.3 million, +14% compared to the corresponding period of 2020/21 and +22.4% to pre-Covid
• Retail channel +22.6% thanks to the removal of restrictions, e-commerce stable. TV sales boom continues thanks to frequency migration and TV Bonus
• Profitability is being normalized compared to the first nine months of 2020/21, benefiting from actions taken to contain the impact of the epidemic1: Adjusted EBIT2 -11.1% to Euro 56.5 million, but +75.5% compared to pre-Covid
• Net cash3 increased to €170 million compared to Euro 154.8 million at the beginning of the fiscal year, despite the payment of dividends for Euro 53.8 million
• Annual revenues expected to exceed Euro 2.9 billion. Guidance for Adj. EBIT2 and Adj. Free Cash Flow4 confirmed in light of product and brand mix, as well as higher energy prices

***

• Guidelines regarding the composition of the new Board of Directors and the new Board of Statutory Auditors published
• The preparatory activities were started for the possible definition of a slate of candidates for the position of Director, proposed by the Board of Directors

Forlì, 13 January 2022 - The Board of Directors of Unieuro S.p.A. (Euronext STAR Milan: 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 Financial Report of the Group at 30 November 2021.

In the first nine months of the fiscal year 2021/22, Unieuro set new records in terms of revenues, up 14% to Euro 2,154.3 million compared to the same period of the previous fiscal year, thanks to the recovery of the Retail channel (+22.6% compared to a 2020/21 marked by restrictions) and the substantial stability of online sales. Revenues in all product categories increased, with Brown showing a very strong rise (+50.4%) thanks to the boom in sales of televisions and decoders triggered by the start of frequency migration and the introduction of the TV Bonus by the Government.

At profitability and cash generation level, the comparison with the first nine months of fiscal year 2020/21 is conditioned by the beneficial and unrepeatable effects of the managerial actions taken last year in response to the outbreak of the epidemic1. With the return to normality, Unieuro nonetheless posted improved results compared to the last pre-Covid

Unieuro S.p.A.	1
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

CORPORATE PRESS RELEASE

fiscal year, with an adj. EBIT2 of Euro 56.5 million (from Euro 32.2 million in the first nine months of 2019/20), an adj. pre-tax income5 of Euro 46.9 million (from Euro 22.3 million) and an adj. Free Cash Flow4 of Euro 73.9 million (from Euro 57.3 million).

Net Cash also reached a new record high of Euro 170 million as of 30 November 2021, with an increase of Euro 15.2 million compared to the beginning of the fiscal year although dividends of Euro 53.8 million were paid out to shareholders in June.

The robust revenue growth trend enables management to forecast revenues for the current year higher than previously expected (Euro 2.8-2.9 billion), with an Adj. EBIT2 and a Adj. Free Cash Flow4 expected to be in the already announced ranges, also in view of the product mix and the sharp rise in energy costs.

"We are happy to close nine months under the sign of expansion, favored by the opening of ten new stores and crowned by the success of the Black Friday campaign.

The results achieved confirm to exceed, in all aspects, those recorded before the outbreak of the epidemic and reassure us of the robustness of our year-end forecasts, which allow us to foresee a further improvement of our market share."

Giancarlo Nicosanti Monterastelli, CEO of Unieuro.

Revenues for the first nine months of 2021/22

In the first nine months ended 30 November 2021, Unieuro reported revenues increasing by 14% compared to the same period of the previous fiscal year, reaching Euro 2,154.3 million (+264.4 million).

The performance is strongly positive as it was achieved in a context of gradual post-Covid normalization and in the absence of significant changes in the company's perimeter, so much so that the evolution of like-for-likeRevenues6 - i.e. the comparison of sales with those of the previous fiscal year on the basis of a homogeneous business perimeter - registered a +12%.

In particular, revenues in the important month of November were booested by the success of the promotional campaign this year renamed "Manà Manà Black Friday", whose duration (November 1 - December 2) was substantially in line with that of the 2020 "Change Black Friday" campaign (November 3 - December 3). Despite the fact that 2020 sales had benefited from the favorable consumption trends triggered by the pandemic, Unieuro nonetheless recorded a growth in November thanks to its commercial competitiveness and the effectiveness of its omnichannel marketing.

Unieuro S.p.A.	2
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

CORPORATE PRESS RELEASE

When comparing with the consolidated results as of 30 November 2019, the last one before the epidemic changed the market scenario, the increase in revenues is even more significant and equal to 22.4% (+394.8 million).

Revenues per sales channel

(in millions of Euro and as a		Period ended		Changes
percentage of revenues))	31 November 2021	%	31 November 2020	%		%
Retail	1,464.8	68.0%	1,194.7	63.2%	270.1	22.6%
Online	364.7	16.9%	367.4	19.4%	(2.7)	(0.7%)
Indirect	225.9	10.5%	220.2	11.7%	5.7	2.6%
B2B	76.9	3.6%	91.1	4.8%	(14.2)	(15.6%)
Travel	22.0	1.0%	16.4	0.9%	5.6	34.2%
Total revenues	2,154.3	100.0%	1,889.8	100.0%	264.4	14.0%

The Retail channel (68% of total revenues) - which as of 30 November 2021 consisted of 271 direct stores, including Unieuro by Iper shop-in-shops - reported sales of Euro 1,464.8 million, up robustly (+22.6%) compared to the Euro 1,194.7 million recorded in the corresponding period of 2020/21. If in the first half of the year the dynamics of revenues were positively influenced by the gradual easing of restrictions on the accessibility of the direct network by customers, in the period September-November 2021 sales were up compared to the same period of 2020 (+13.2%) also thanks to the success of the "Manà Manà Black Friday" promotional campaign. The transition to direct management of 18 Unieuro by Iper shop-in-shops, previously under affiliation and internalized starting from the second half of the previous fiscal year, as well as the new openings and interventions carried out in the period on the direct network should also be considered. Thanks to these effects, the channel performance is also positive compared to the final figures as of 30 November 2019, the last pre-Covid year: +19%.

The Online channel (16.9% of total revenues) recorded revenues of Euro 364.7 million, essentially stable (-0.7%) compared to the first nine months of 2020/21, thus recovering almost entirely the 12.8% decline recorded in the first half, also thanks to the performance achieved in November by the renewed unieuro.it platform. Compared to the data recorded in the first nine months of 2019/20, the last pre-Covid financial year, channel revenues are up 83.8%, confirming the effectiveness of marketing activities on the Online channel, both mainstream and digital, as well as the new consumption habits triggered by the pandemic and which have become structural.

The Indirect channel (10.5% of total revenues) - which includes sales to the network of affiliated stores for a total of 257 stores as of 30 November 2021 - reported revenues of Euro 225.9 million, up 2.6% compared with the Euro 220.2 million of the same period of the previous fiscal year. While the slowdown compared with the first half is linked, among other

Unieuro S.p.A.	3
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

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things, to the drop in revenues in November compared with 2020, when the network of affiliated stores had benefited exceptionally from the closure of shopping malls on or before public holidays, in the nine months the channel benefited from the gradual easing of restrictions, from the distinctive characteristics of the affiliated stores - of medium-small size and focused on proximity services - as well as from the new openings in the period, which partially offset the transition to the retail channel of the Unieuro by Iper shop-in-shops. The performance is therefore positive (+12.8%) even compared to the consolidated results as of 30 November 2019, the last pre-Covid fiscal year.

The B2B channel (3.6% of total revenues) - which caters to professional customers, including foreign ones, who operate in sectors other than those of Unieuro, such as hotel chains 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) - recorded sales of Euro 76.9 million, down 15.6% compared to Euro 91.1 million in the first nine months of the previous fiscal year. The contraction, which is even more evident when compared with the corresponding period of 2019/20 (-23.3%), is the result of a precise managerial choice linked to the lower availability of product with which to feed the channel.

Finally, the Travel channel (1% of total revenues) - consisting of 11 direct sales outlets located at some of the main public transport hubs, such as airports, railway stations and undergrounds - registered a 34.2% recovery compared with the same period of the previous fiscal year, with sales of Euro 22 million. Although this performance is positive and in the process of being normalized thanks to the gradual recovery of traffic at stations and airports, which were subject to total or partial closure during the pandemic, it is still decreasing compared to the nine months of the last pre-Covid financial year (down 24.8%).

Revenues by product category7

(in millions of Euro and as a		Period ended		Changes
percentage of revenues)	31 November 2021	%	31 November 2020	%		%
Grey	973.7	45.2%	925.9	49.0%	47.8	5.2%
White	563.8	26.2%	515.1	27.3%	48.7	9.5%
Brown	420.9	19.5%	279.9	14.8%	141.0	50.4%
Other products	95.6	4.4%	91.1	4.8%	4.5	4.9%
Services	100.3	4.7%	77.8	4.1%	22.5	28.9%
Total revenues	2,154.3	100.0%	1,889.8	100.0%	264.4	14.0%

The Grey category (45.2% of total revenues) - i.e. phones, tablets, information technology, accessories for phones, cameras, as well as all wearable technology products - generated sales of Euro 973.7 million, up 5.2% from Euro 925.9 million in the corresponding period of the previous fiscal year. Sales, driven in the nine months mainly by phones, wearables and

Unieuro S.p.A.	4
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

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tablets, were however affected in the third quarter by the decline in tablets and computers, in light of a highly challenging 2020 comparison base, which had benefited from purchasing trends related to smart working, e-learning and communication, emphasized by the emergency context. Performance compared to the nine months ended 30 November 2019, the last pre-Covid fiscal year, however, remained strongly positive at +17.1%.

The White category (26.2% of total revenues) - comprising large domestic appliances (MDA) such as washing machines, dryers, refrigerators or freezers and stoves, small domestic appliances (SDA) such as vacuum cleaners, food processors, coffee machines, as well as the air conditioning segment - generated revenues of Euro 563.8 million, up 9.5% compared to the Euro 515.1 million of the same period of the previous fiscal year. Following the positive results registered in the first half of the year, the Manà Manà Black Friday brought double-digit increases for tumble dryers and refrigerators, coffee machines, the vacuuming segment, personal care and air fryers.

The Brown category (19.5% of revenues) - comprising televisions and related accessories, audio devices, smart TV devices, car accessories and memory systems - accelerated the already strong growth in revenues recorded in the first half, posting a 50.4% jump in the nine months to Euro 420.9 million from Euro 279.9 million in the same period of the previous fiscal year. The excellent performance of the third quarter (+58%) is linked to the boom in sales of televisions and decoders, which benefit from the gradual switch-off of television frequencies that has begun in October 2021 and is still underway, and the introduction of the TV Bonus, decided by the Government to facilitate the technological transition.

The Other Products category (4.4% of total revenues) - which includes both sales in the entertainment segment and other products not included in the consumer electronics market such as hoverboards or bicycles - recorded revenues of Euro 95.6 million, up 4.9% compared to the same period of the previous fiscal year. However, the performance, which was even more positive when compared with the first nine months of 2019/20 (+24.2%), was affected by the drop in revenues in the third quarter of the current fiscal year, which fell by 15.4% in light of the extraordinarily strong third quarter of 2020/21, which had benefited from the launch of the PlayStation 5 and the boom in e-mobility induced by the introduction of the Mobility Bonus.

The Services category (4.7% of total revenues) reported revenues of Euro 100.3 million, levels that are higher than both the corresponding period of the previous fiscal year (+28.9%) and the pre-Covid period (+33.5%). The positive trend benefited from Unieuro's continuous focus on the provision of services to its customers, particularly as regards extended warranty, delivery and transportation.

Unieuro S.p.A.	5
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro