BasicNet S p A : - Growth in H1 2021....

Turin, July 29, 2021. The Board of Directors of BasicNet S.p.A. today approved the H1 2021 consolidated results:

• aggregate sales of Group products by the Global licensees' Network of Euro 443 million, up 20.5% on H1 2020, as follows:
  • commercial licensees of Euro 334 million (Euro 259.6 million in H1 2020, +28.6%)
  • productive licensees of Euro 109.1 million (Euro 108 million in H1 2020, +1%).

Commercial licensees' sales saw a major upturn. Overall, Europe - which accounts for over 69% of aggregate sales - saw a significant recovery (+30.8%) on H1 2020 and was up 3.7% on the record sales of 2019, despite the continuance of government restrictions in H1 2021 to limit the spread of COVID. Sales rose 57.3% (+10% on 2019) in the Americas and 64.2% in the Middle East and Africa. Asia and Oceania, which represents 7% of aggregate sales, reported a decline of 29.9% on the same period of the previous year, mainly due to the replacement of a licensee. Productive licensees' sales recovered at a slower pace due to a general delay in shipments as a result of the current temporary slowdown of commercial marine transport;

• consolidated revenues of Euro 128.5 million (Euro 109.1 million in H1 2020, +17.7%), as follows:
  • royalties from commercial and productive licensees: Euro 25.8 million (Euro 22.4 million in H1 2020, +15.5%);
  • direct sales: Euro 102.6 million (Euro 86.8 million in 2020, +18.3%); this result is even more exceptional in view of the prolonged closure of plug@sell stores in Italy (between March and May 2020, compared to the closures in 2021 which, although discontinuously, were extended from January until mid-May);

• EBITDA: Euro 14.5 million (Euro 0.8 million in H1 2020);
• EBIT: Euro 8.5 million (Euro -5 million in H1 2020);
• net profit: Euro 4.1 million (Euro -5.5 million in H1 2020);
• net financial position: Euro -84.1 million (Euro -81.6 million at June 30, 2020 and Euro -82.2 million at December 31, 2020). Dividends of Euro 3.1 million were distributed in the year and treasury shares acquired for Euro 1.6 million.

The Group continues to be on the frontline in the fight against COVID. On April 27, at the BasicVillage, BasicNet's Turin headquarters, the 'Humanitas Gradenigo' vaccination centre opened. The facility, which is also open to BasicNet staff and their families, has to-date administered an average of 800 vaccines per day.

Outlook

On the basis of the order portfolio and forecast royalties and sourcing commissions, the positive operating performance is expected to continue in the second half of the year. This expectation however remains subject to the developing health emergency.

Introduction ofthe mechanism for increasing voting rights

The Extraordinary Shareholders' Meeting today approved the amendments to the By-Laws to introduce mechanism for increasing voting rights, as per Article 127-quinquies of Legislative Decree No. 58/98. This mechanism permits the assignment of two votes for each ordinary BasicNet share held by the same Shareholder of the Company for a continuous period of at least 24 months from their enrolment in a special Register set up and maintained by the Company.

The methods to request enrolment in the Register and all other information regarding increased voting rights in accordance with Article 127-quinquies of Legislative Decree No. 58/1998 are available on the Company website at www.basicnet.com/corporategovernance/increasedvote.

The introduction of the mechanism for increasing voting rights is intended to incentivise medium/long-term investment in support of the long-term growth and development of the BasicNet Group.

The Chief Executive Officer Federico Trono will present the H1 2021 results during a video conference to be held today in English at 6PM.

To participate:

Microsoft Teams Meeting

Participate via computer or mobile app

Click here to attend the meeting

Alternatively, attend by calling (only audio)

[phone],,166759877# Italy, Milan

Telephone ID conference: 166 759 877#

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:

http://www.basicnet.com/contenuti/datifinanziari/informazioniannuali.asp?menuSelectedID=3g

In relation to the 'alternative performance indicators', as defined by the ESMA/2015/1415 guidelines, we provide below a definition of the indicators used in this press release and in the financial statements, as well as their reconciliation with the condensed half-year financial statement items:

Commercial licensees or licensees:	independent business owners, granted licenses to distribute Group brand products in their respective regions.
Productive licensees or sourcing centers:	third-party firms to the Group. Their function is to manufacture and market merchandise and are located in various countries worldwide, depending on what type of goods they produce.
Commercial licensee aggregate sales:	sales by commercial licensees, recognised by the BasicNet Group to the 'royalties and sourcing commissions' account of the income statement.
Productive licensee aggregate sales:	sales by productive licensees, recognised by the BasicNet Group to the 'royalties and sourcing commissions' account of the income statement.
	the sum of royalties, sourcing commissions and sales of the licensee company BasicItalia S.p.A. and its subsidiaries, in addition to the parent company BasicNet S.p.A.
Marketing and communication investment	the sum of sponsorship and media costs and other communication costs including overheads.
	'operating result' before 'amortisation and depreciation'.
	'operating result'.
Contribution margin on direct sales:	'gross profit';
	this is an indicator of the financial structure of the balance sheet and is calculated as the ratio of financial debt to shareholders' equity.
	total of current and medium/long-term financial payables, less cash and cash equivalents and other current financial assets.
	represents the cash flow available to the company and is the difference between the cash flow from operating activities and the cash flow for investments in fixed assets.
	calculated as required by IFRS on the basis of the weighted average number of shares in circulation in the year.

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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