PRESS RELEASE / BasicNet – H1 2022:...

Turin, July 29, 2022. The Board of Directors of BasicNet S.p.A. has approved the H1 2022 consolidated results:

• aggregate sales of Group products by the Global licensee Network of Euro 567.9 million, up 28.2% on H1 2021, as follows:

- commercial licensees of Euro 393.5 million (Euro 334 million in H1 2021, +17.8%)

- productive licensees of Euro 174.3 million (Euro 109.1 million in H1 2021, +59.9%).

Excellent commercial licensees' sales. Particularly: Asia and Oceania, accounting for 8.9% of aggregate sales, grew 50.7%, with the Middle East and Africa up 42.4% and the Americas by 37.7%. Europe, accounting for approx. 63.1% of aggregate sales, grew 7.1% in the same period of the previous year;

• consolidated revenues of Euro 162.3 million (Euro 128.8 million in H1 2021, +26.1%), as follows:

- royalties from commercial and productive licensees: Euro 34.9 million (Euro 25.8 million in H1 2021, +35.2%);

- direct sales: Euro 127.0 million (Euro 102.6 million in 2021, +23.7%);

• EBITDA: Euro 22.4 million (Euro 14.5 million in H1 2021, +54.3%);

• EBIT: Euro 15.5 million (Euro 8.5 million in H1 2021, +81,9%);
• net profit: Euro 10.7 million (more than doubling on Euro 4.1 million in H1 2021);

• net financial position: Euro -119.3 million (Euro -61.7 million at December 31, 2021 and Euro -84.1 million at June 30, 2021). Dividends of Euro 6.1 million were distributed in the year and treasury shares acquired for Euro 4.4 million. The Group also acquired for Euro 33.4 million full ownership of the company K-Way France and invested Euro 5.8 million in the Real Estate sector.

Outlook

On the basis of the order portfolio and forecast royalties and sourcing commissions, consolidated revenues are expected to grow further in the current financial year. The core operating results are however subject to global economic developments, the consequent impacts on raw material costs, currency movements, and the geopolitical crises arising in Eastern Europe.

"Kappa Transaction" - Merger by incorporation of the subsidiary BasicNewco S.r.l. with sole shareholder approved, bringing all the individual brand-owning companies under the direct control of the parent BasicNet.

As previously announced, the BasicNet Group has launched the "Kappa Transaction" reorganisation process. The Project - arising following the acquisition and full integration of the Kappa Europe Group into the Group Business model, in addition to the recent acquisition of the Kappa brand for Japan - is undertaken in order to bring all the individual brand-owning companies under the direct control of the parent BasicNet.

In that framework, today's Board of Directors' meeting also approved the merger by incorporation into BasicNet S.p.A. of the wholly-owned company BasicNewco S.r.l. with sole shareholder. The merger shall be considered by the Board of Directors of BasicNet S.p.A. as per Article 2505, paragraph 2 of the Civil Code and Article 16 of the By-Laws, subject to the option under Article 2505, paragraph 3 of the Civil Code.

The project, which does not entail any change in the Group's ownership structure or equity structure, is designed to ensure a closer focus on the individual brands.

As the incorporated company is wholly-owned by BasicNet S.p.A., the simplified merger procedure as per Article 2505 of the Civil Code will be applied. A share capital increase of the incorporating company shall therefore not take place, nor any exchange ratio or adjustment of any type applied.

The merger will be effective vis-à-vis third parties upon the filing of the merger deed at the Company's Register, or at a subsequent date as stipulated in the merger deed, which is reasonably expected to be executed by the end of the present year.

The transaction, which constitutes a "related party transaction" as per Consob Regulation No. 17221/2010, as subsequently amended (the "RPT Regulation") and the applicable related party transactions policy adopted by BasicNet S.p.A. (the "RPT Policy") is however exempt from the RPT Policy, as per Article 3.9, as undertaken by BasicNet with a wholly-owned subsidiary, in which other related parties of BasicNet do not hold significant interests.

The company shall make available to the public the documentation regarding the merger and the required disclosure according to the terms and means established by the applicable regulation, on the company's website at www.basicnet.com, in addition to the "1info" authorised storage mechanism at www,1info.it.

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The Chief Executive Officer Federico Trono will present the H1 2022 results during a video conference to be held today in English at 6PM.

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The presentation may be downloaded from the website www.BasicNet.com, from the section: "financial data/other information and presentations" shortly before the video conference, at the following link:

www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g&language=IT

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In relation to the "alternative performance indicators", as defined by CESR/05-178b recommendation and Consob Communication DEM/6064293 of July 28, 2006, we provide below a definition of the indicators used in the present Directors' Report, as well as their reconciliation with the financial statement items:

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The Executive Officer for Financial Reporting, Ms. Paola Bruschi, declares in accordance with Article 154-bis, paragraph 2, of the Consolidated Finance Act that the accounting information contained in the present press release corresponds to the underlying accounting documents, records, and accounting entries.

The financial statements are attached
(Click on "Attachment" to download the financial statements)