Fourlis S A : Press Release – FY23 Financial Results

PRESS RELEASE

Fourlis Group Consolidated Financial Results for the Full Year of 2023

Fourlis Group Achieved Strong FY 2023 Results: Revenue Growth, Operational Efficiency, and

Strategic milestones fuel success and further future growth

Athens, Greece - April 9, 2024 -FOURLIS HOLDINGS S.A. (Bloomberg: FOYRK:GA - Reuters: FRLr.AT - ISIN: GRS096003009) announces its FY 2023 financial results.

FY 2023 key Financial Highlights

• Revenue Growth driven by the Group's strategic initiatives, market leadership and adaptability to market trends.
  Fourlis Group revenue increased by 10% yoy on a like-for-like basis, i.e. excluding Intersport Turkey and The Athlete's Foot sales, reaching €521.3 mil.
• Operational Efficiency and Profitability Growth.
• • Significant EBITDA (OPR)* growth of 21.8% reaching €48.2 mil.in FY' 23 compared to €39.6 mil. last year, on the back of rationalization of operating costs and increasing operating leverage.
  • The Group's EBIT reached € 55.5 mil. in FY '23 up by 64.5% from € 33.7 mil. in FY '22, with the EBIT margin reaching 10.4% in FY '23 from 6.7% in FY '22.
  • Significant revaluation gains amounting to €22.4 mil. were recorded by Fourlis Group within 2023, the majority being attributed to the recent acquisition of Smart Park, the largest retail park in Greece.
• Value creation through Trade Estates successful investment plan execution.
  Fully committed to expanding its portfolio of high-yielding and high-quality real estate assets, the Group's subsidiary Trade Estates, as of the end of 2023, significantly increased its Gross Asset Value by 65% to €477 mil. and its Net Asset Value increased by 41% at €298.4 mil., resulting in strong dividend returns.
• The Group's retail business performance indicates a solid business model set to drive profitable growth through operating leverage and operating efficiencies.
• • Revenue from the Group's retail business was up by 10% at €521.3 mil. in FY '23.
  • EBITDA (OPR)1 from the Group's retail business increased by 25.8% reaching €35.9 mil., with the EBITDA (OPR) margin at 6.9%.
  • Net Debt of the Group's retail business stood at its lowest level within the decade reaching €84.8 mil. in FY '23 highlighting the Group's commitment to deleveraging its balance sheet.

1 *Alternative Performance Measure, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail figures are given in Exhibit 1.

• Significant milestones completed within the year, while the Group is well-invested to capture the upside potential through the execution of its strategic plan.
• • Successfully completed the IPO of Trade Estates and its listing in the Athens Stock Exchange, while Trade Estates also finalized the acquisition of SMART PARK, the largest retail park in Greece.
    The next landmark is Trade Estates de-consolidation from Fourlis Group, a strategic move which will unlock value for Fourlis Group shareholders.
  • Optimized IKEA and Intersport store network.
  • Expanded into health and wellness with 6 new Holland & Barrett stores and its e-commerce platform.
  • Enhancing our logistics services and leveraging our skills to form new partnerships.
  • Established a collaboration with Inter IKEA for the new international DC in Greece, showcasing our logistics expertise and supporting further our future profitability.

Dimitris Valachis, Chief Executive Officer of Fourlis Group, commented: "Our strong performance in FY 2023 reflects our commitment to strategic growth and continuous upgrade of our business model. Staying at the forefront of our markets, delivering top retail customer experience ahead of market growth, has been pivotal to our success. With double-digitrevenue growth, enhanced operational efficiency, and successful execution of key strategic milestones, we have laid a solid foundation for continued success. As we move forward, we remain focused on delivering value to our shareholders, driving profitable growth, and further strengthening our position as a leader in the retail sector."

Key Financial Figures

Fourlis Group Consolidated P&L

(amounts in € mil.)	FY '22	%	FY '23
Revenue	501.4	6.7%	535.1
Gross Profit	225.8	7.6%	243.0
Gross Profit margin	45.0%		45.4%
EBITDA (OPR)*	39.6	21.8%	48.2
EBITDA (OPR) margin	7.9%		9.0%
Inv.Assets revaluation	8.45	164.4%	22.4
EBIT	33.7	64.5%	55.5
EBIT margin	6.7%		10.4%
Net Financial Income/(expenses)	-16.1		-22.1
Contribution from	2.3		-2.5
associates/Income/(Expense) from
subsidiaries & associates
PBT	20.0	54.6%	30.9
PBT margin	4.0%		5.8%
Profit After Tax	19.8	42.4%	28.1
Net Profit After Tax margin	3.9%		5.3%
Minority interest	-0.6		-8.9
Net Profit after Minorities	19.2	0.4%	19.2
Net Profit after Minorities margin	3.8%		3.6%

Fourlis Group Retail Business P&L

	(amounts in € mil.)		FY '22	%		FY '23
	Revenues		474.2		10.0%		521.3
	Gross Profit	210.2		9.7%	230.7
	Gross Profit margin		44.3%				44.3%
	EBITDA (OPR)*	28.6		25.8%	35.9
	EBITDA (OPR) margin		6.0%				6.9%
	EBIT	14.9		41.3%	21.1
	EBIT margin		3.1%				4.0%
	Net Financial Income/(expenses)	-17.1			-20.6
	Income from Associated companies		1.2				2.0
	Dividends from Trade Estates	4.8			6.6
	PBT		3.7		147.5%		9.1
	PBT margin	0.8%			1.8%

• The Group presents the financial figures and the performance of its retail business, that is excluding Trade Estates impact from the consolidated financial statements, and specifically excluding Trade Estates impact from the Retail Home Furnishings (RHF) segment, where the investments in real estate of Trade Estates are currently consolidated.
• For comparability purposes, the figures above also exclude the impact from Intersport
  Turkey and The Athlete's Foot that were sold within FY 2023.

*Alternative Performance Measures, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail business figures are given in Exhibit 1.

The Group presented a solid financial performance within 2023 exhibiting the strength of its business model, the successful implementation of its transformative strategic plan and its ability to generate value for its shareholders.

The Group's revenue amounted to € 535.1 mil. in the FY '23 from 501.4 mil. in the FY '22, increased by 6.7% yoy. On a like-for-likebasis, i.e. excluding sales from the companies "The Athlete's Foot" and "Intersport Turkey" that have been sold within FY '23, this represents a strong double-digitsales growth of +10%.

The sales growth is supported by both the Retail Home Furnishings (RHF) and the Retail Sporting Goods (RSG) and attributed to the Group's strategic initiatives and market trends. The Retail Home Furnishings (RHF) segment posted a significant 12.9% yoy increase, driven by IKEA stores market leadership, improved stock availability and improving market dynamics. The Retail Sporting Goods (RSG) segment presented a sales growth of +6.3% yoy on a LfL basis, reflecting our commitment to staying at the forefront of the evolving sporting goods retail landscape.

Moreover, the Group's new retail business in Health & Wellness that was activated within 2023, through 6 Holland & Barrett stores in Athens and an e-commerce channel is gaining momentum.

The Group's e-commercesales during FY '23 represented c. 14% of total Group revenue, while the expansion of ecommerce contribution to total Group's revenue constitutes a strategic pillar of the Group's growth strategy.

The Group's Gross Profit reached 243.0 mil in FY '23 from 225.8 mil. in FY '22, with the Group's Gross Profit margin at 45.4% in FY '23 compared to last year's Gross Profit margin of 45%, supported predominantly by a strong RHF gross margin and a positive trend in RSG gross margin toward stabilization.

The Group's continued placing emphasis on prudent control over operating expenses and optimization of operations in both RHF and RSG segments. The de-escalation of inflationary pressures has further positively influenced operating expenses, magnifying the positive impact of operating leverage on our overall profitability.

Therefore:

Group EBITDA (OPR)2* was increased by 21.8% reaching € 48.2 mil. during FY '23 from €39.6 mil. in FY '22, while EBITDA (OPR) margin increased to 9.0% in FY '23 from 7.9% in FY '22.

Therefore, the Group's EBIT reached € 55.5 mil. in FY '23 up by 64.5% from € 33.7 mil. in FY '22, with the EBIT margin reaching 10.4% in FY '23 from 6.7% in FY '22.

The Group's EBIT within FY '23 includes € 22.4 mil. of asset revaluation gains relating to the Trade Estates REIC compared to €8.5 mil. included last year, with the majority being attributed to the recent acquisition of Smart Park, the largest retail park in Greece.

2 *Alternative Performance Measures, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail business figures are given in Exhibit 1.

The Group's Profit Before Tax reached € 30.9 mil. in FY '23 up by 54.6% from € 20 mil. in FY '22.

Group Profit After Tax reached € 28.1 mil. in FY '23 compared to € 19.8 mil. in FY '22 up by 42.4%.

The Group's Net profit after minorities reached € 19.2 mil. in FY '23 same as last year, due to higher minorities compared to last year following the sale of the 4.2% of Trade Estates shares to Latsco Hellenic Holdings, the impact from the share capital increase through contribution in kind (property) within 2023 from Autohellas and the share capital increase of Trade Estates following its IPO.

The Group's retail business performance indicates a solid business model set to drive profitable growth through operating leverage and operating efficiencies.

Revenue from the Group's Retail business and excluding sales from the sold companies "The Athlete's Foot" and "Intersport Turkey" amounted to € 521.3 mil. in the FY '23 from 474.2 mil. in the FY '22, increased by 10% yoy.

The EBITDA (OPR)3 from the Group's retail business in FY '23 stood at €35.9 mil. from €28.6 mil. in FY '22 up by 25.8%, with the EBITDA (OPR) margin at 6.9% in FY '23 from 6.0% in FY '22.

The EBIT from the Group's retail business increased by 41.3% reaching €21.1 mil. in FY '23 from €14.9 mil. in FY '22, with the EBIT margin at 4.0% in FY '23 from 3.1% in FY '22.

The PBT from the Group's retail business was up by 147.5% to €9.1 mil. in FY '23 compared to € 3.7 mil. in FY '22.

The significant operating cashflow generation, resulting from the increased profitability of the business and the improvement of working capital, enables the Group to follow its expansionary plan and also return value to its shareholders.

The Board of Directors will propose a dividend payment for FY 2023 of 0.12 euro per share, compared to 0.11 euro per share that was distributed for FY 2022.

Within 2023, the Group's financial structure witnessed notable changes in alignment with the management's strategy to optimize its capital structure and enhance its resilience for future growth initiatives. During the FY '23 the Net Debt of the Group's retail business stood at its lowest level in a decade, reaching € 84.8 mil. from €102.5 mil. in FY '22.

The capex related to the Group's retail business in FY '23 amounted to € 17.6 mil.

Approximately €120.8 mil. of capex was allocated to Trade Estates investments, with the majority being attributed to the acquisition of Smart Park, the largest retail park in Greece.

3 *Alternative Performance Measures, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail figures are given in Exhibit 1.

Analysis per Segment

Retail Home Furnishings (IKEA stores)

					RHF segment									Home Furnishings Retail business (IKEA stores)
		(amounts in € mil.)			FY '22	%		FY '23			(amounts in € mil.)		FY '22	%			FY '23
		Revenue				317.6		12.9%		358.4
											Revenues			310.1		11.6%			346.0
		Gross Profit			139.4	17.0%	163.2
							Gross Profit	131.9	14.2%		150.7
		Gross Profit margin			43.9%				45.5%
											Gross Profit margin			42.6%					43.6%
		EBITDA (OPR) *			30.5	41.7%	43.2
															EBITDA (OPR)*	20.2	52.0%		30.7
		EBITDA (OPR) margin			9.6%				12.1%
																EBITDA margin (OPR)			6.5%					8.9%
		EBIT	(excl.	Inv.	Assets	23.1	52.4%	35.2
		revaluation)												EBIT	12.9	76.0%		22.7
		EBIT margin				7.3%				9.8%					EBIT margin			4.2%					6.6%
		Inv. Assets revaluation			8.5				22.4
		EBIT					31.6		82.4%		57.6			The financial figures above present the performance of the RHF
										segment excluding Trade Estates impact, that is, excluding the
		EBIT margin				9.9%				16.1%			investments in real estate assets of Trade Estates that are
														currently consolidated within the RHF segment.

*Alternative Performance Measure, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail business figures are given in Exhibit 1.

The Retail Home Furnishings (RHF) segment continues to underscore IKEA stores leading position in the market across the Group's region of activity and its ability to generate profitable growth.

The Home Furnishings retail business (IKEA stores), that is, the RHF segment excluding Trade Estates contribution, which is currently consolidated within the RHF segment, achieved an 11.6% increase in revenues during FY '23, reaching €346 mil. from €310.1 mil.

This growth is attributed not only to IKEA stores market leadership but also to improved stock availability, increased visitorship, and a strategic positioning that capitalizes on favorable market trends. This growth is further bolstered by a positive economic outlook, a rebounding tourist industry, and an active residential real estate market.

The revenue growth saw a robust 10% increase in the Home Furnishings retail business (IKEA stores) revenue in Greece, representing 57% of total revenues of the Home Furnishings retail business. Additionally, Home Furnishings retail business (IKEA stores) revenue from international markets increased by 14.3% year-on-year in 2023.

The increase in revenue, along with an improved Gross Profit margin and effective operating leverage, resulted in a significant improvement in Home Furnishings retail business profitability during FY' 23.

Prudent control over operating expenses and the de-escalation of inflationary pressures has further positively influenced operating expenses, magnifying the positive impact of operating leverage on our overall profitability.

Therefore:

• Home Furnishings retail business (IKEA stores) EBITDA(OPR)* in FY '23 increased by 52.0% at €30.7 mil. compared to €20.2 mil. in FY '22, with the EBITDA(OPR) margin reaching 8.9% in FY '23 from 6.5% in the previous year.
• The Home Furnishings retail business (IKEA stores) EBIT increased by 76% to €22.7 mil from €12.9 mil. in FY '22, with the EBIT margin reaching 6.6% in FY '23 from 4.2% in FY '22.

Fourlis Group remains focused on its strategic approach, emphasizing an omnichannel presence, a well- structured and optimized stores network, robust e-commerce initiatives, digitalization, and a commitment to preserving top home furnishing expertise. This dedication to the core elements of our strategy positions us for continued success in the dynamic retail landscape.

The Group's Home Furnishings retail business today operates 21 IKEA stores in total (in Greece, Bulgaria and Cyprus) of different sizes. Furthermore, 3 new IKEA stores in Greece are either under construction or under design process, while the Group aims to start their operation in the next 1-3 years.

Looking ahead, the Group is actively exploring opportunities for further expansion, considering the possibility of opening additional shops in cities. This potential expansion aligns with our commitment to meeting the evolving needs of our customers and strategically positioning our presence in order to increase further our market share.

Retail Sporting Goods (INTERSPORT stores)

			RSG segment								Sports Retail (INTERSPORT stores)
		(amounts in € mil.)		FY '22	%		FY '23				(amounts in € mil.)		FY '22	%			FY '23
		Revenue		184.3		-4.3%		176.3					Revenue			163.7		6.3%			174.0
		Gross Profit	86.8		-8.0%	79.9					Gross Profit	77.9	1.4%		79.1
		Gross Profit margin		47.1%				45.3%					Gross Profit margin			47.6%					45.4%
										EBITDA (OPR)*	11.6	-4.2%		11.2
		EBITDA (OPR)*	12.4		-12.9%	10.8
							EBITDA (OPR)			7.1%					6.4%
		EBITDA (OPR) margin		6.7%				6.1%
										margin
		EBIT	5.6		-29.0%	3.99
							EBIT	5.4	-19.4%		4.4
		EBIT margin		3.0%				2.3%					EBIT margin			3.3%					2.5%
												The financial figures above present the performance of RSG
												segment excluding the impact of Intersport Turkey and The
												Athlete's Foot that were sold within FY 2023.

*Alternative Performance Measure, as defined in the Management Report of the Board of Directors for the period 1/1-31/12/2023. Reconciliation tables between Fourlis Group and Fourlis Group Retail business figures are given in Exhibit 1.

Sports retail revenue (Intersport stores), excluding the revenue from "The Athlete's Foot" (TAF) and "Intersport Turkey" (ITR) that were sold, was up by 6.3% during FY '23 compared to last year, despite tough competitive dynamics.

The Sports retail revenue growth during '23 is mainly driven by Greece, that represents c. 60% of total Sports retail revenues, and Bulgaria. Both countries outperformed the market and were amongst the top performing countries in 2023 sales performance across the Intersport Group region.

Overall, Sports retail (Intersport stores) sales were supported by store network renovations within Greece, improvement in product range and efficient category management.

Irregular weather conditions leading to higher promotional initiatives, have influenced the Retail RSG gross profit margin, particularly weighing on Q1 and Q3 of 2023, however, there is a positive trend towards stabilization. Our emphasis on operating leverage and the moderation of inflation helped to partially alleviate the pressure on gross profit.

Additionally, during 2023 RSG achieved a significant decline of inventory, despite the addition of new stores. Rationalization of inventory levels led to improved working capital and free cash flow.

• Sports retail (Intersport stores) EBITDA(OPR)* in FY '23 reached € 11.2 mil., from € 11.6 mil. in FY '22, with the EBITDA(OPR)* margin at 6.4% in FY '23 from 7.1% last year.
• Sports retail (Intersport stores) EBIT in FY '23 stood at €4.4 mil. from €5.4 mil. in FY '22, with the EBIT margin reaching 2.5% in FY '23 from 3.3% in FY '22.

Our comprehensive strategies, including operating leverage, network expansion, an enhanced ecommerce strategy, a reassessment of our organizational structure, and effective working capital management, coupled with the gradual de-escalation of inflationary pressures, are anticipated to contribute to an overall enhancement in profitability moving forward.

The Sports retail, operating currently 108 Intersport stores (59 stores in Greece, 33 in Romania, 10 in Bulgaria and 6 in Cyprus), concluded its store network upgrading program in Greece in alignment with our commitment to always deliver a modernized and customer-centric retail experience.

Our future plans involve a constant search for new opportunities for network expansion in all our countries, ensuring our retail footprint stays dynamic and responsive to evolving market demands.

Retail Health & Wellness (HOLLAND & BARRETT)

Fourlis Group's franchise of HOLLAND & BARRETT has achieved significant developments within the first year of its operation. Within 2023 Holland & Barrett, opened its first 6 stores in Athens and initiated its ecommerce platform, all showing very strong signs for its future potential.

The Group's Retail Health & Wellness within FY '23 presented revenue amounting to €0.8 mil. and recorded operating losses of € 2 mil. due to the development of its stores network and infrastructure.

Encouraged by the growing prospects of the health & wellness market, Fourlis Group remains strategically positioned to capitalize on this evolution. We remain committed behind our plan to further grow our physical and digital stores network in Greece, Romania and Bulgaria in the next years.

The positive momentum in our expansion plan continues, with expectations for the opening of new stores and partnerships by year-end. These developments align with our mission to bring quality health and wellness products to a wider audience, contributing to the Group's overall growth and success in this growing sector.

It is reminded that Holland & Barrett is the UK's leader in health & wellness and one of the largest wellness retailers in Europe. With a history of more than 150 years, Holland & Barrett has a retail presence of more than 1600 stores across 19 countries worldwide. Holland & Barrett's mission is to make health and wellness a way of life for everyone, adding quality years to life through market leading range of innovative vitamins, supplements, specialist food, sports nutrition and beauty brands.

Key information on TRADE ESTATES REIC

The Trade Estates REIC, Fourlis Group subsidiary, has experienced significant developments within 2023, building upon its establishment in July 2021.

Trade Estates key financial highlights in FY '23 include a notable 28.3% increase in Total Income, boasting a Gross Annual Rental yield of 7.7%. Trade Estates Board of Directors also proposed a dividend payment amounting to €9.6 mil.

Furthermore, during its two years of operations and as of 31/12/2023 the Gross Asset Value (GAV) grew by 65% to €477 mil. compared to last year, while its Net Asset Value increased by 41% reaching €298.4 mil. at end of 2023.

Currently, Trade Estates owns 13 income-generating assets and 2 assets under development.

Key milestones that were completed within the year, as part of Trade Estates strategic growth plan, include the completion of its IPO in November 3rd 2023 and the acquisition of SMART PARK, Greece's largest retail park. Finally most recently another important collaboration was established between Fourlis Group and Inter IKEA for the establishment of InterIkea's new international Distribution Center in Greece, whereby Trade Estates will be the owner and developer of the new DC.

According to its development plan, by 2027 Trade Estates will have a strong high-yielding property portfolio

of over €700 mil.

Further information is provided in the company's website: Trade Estates - Trade Estates(trade-estates.com)

Conference Call details

The financial results of FY 2023 will be presented in a conference call on Wednesday April 10th 2024 at 17.00, local time (GMT+2) through both audio conference and live webcast. Please click to access details for the conference call

Additionally, on Wednesday April 10th at 9:30 am (Athens time), the presentation of the Group's FY23 results will also take place at the Hellenic Fund and Asset Management Association in the Athens Stock Exchange premises (110 Athinon Avenue).