Monnalisa S.p.A.: the Board of Directors approves the annual report at 31st December 2022

MONNALISA®

PRESS RELEASE

MONNALISA GROUP: FY 2022 REVENUES UP 6% AND EBITDA MARGIN UP

12,5%, WITH RETAIL CHANNEL GROWTH OF 20%

• Revenues of Euro 46.4 million (Euro 43.6 million in 2021), up 6%, despite the challenging political environment and the general economic uncertainties of 2022
• retail channel revenues +20%
• reported consolidated EBITDA +13% to Euro 5.8 million (Euro 5.1 million in 2021), with an EBITDA margin of 12,5%; Adjusted EBITDA1 of Euro 5.9 million
• Operating cash flow of Euro 6.9 million generated (Euro 6.5 million in 2021)
• Share of direct, physical and online retail (D2C - Direct to Consumer) up 3 points to 42% of revenues (39% in 2021), confirming the company's ability to execute a closer-to-customer strategy; company direct sales points number 49 at end of 2022 (51 at 31/12/2021)
• The Group in 2023 targets the consolidation of its D2C growth and the continued extension of its range, also through collab project launches with selected high-standing partners.

Arezzo (AR), March 31, 2023

The Board of Directors of Monnalisa S.p.A., the operative holding company of the Monnalisa Group, the high-end childrenswear leader and listed on the Euronext Growth Milan market organised and managed by Borsa Italiana, met today and approved the 2022 Consolidated and Separate Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS).

Christian Simoni, Chief Executive Officer of Monnalisa, stated:

"2022 good economic and financial performance reinforce the solid foundation, rooted in our ESG values, for the implementation of our three years development plan, which integrates last five years strategy, including brand equity increase, pursuance of higher operations efficiency, and internal growth through widening the merchandising mix and retail development, with the change of our business model. We will open to selective collabs and licenses with other brands, leveraging on the resources, competencies and capabilities system that we have created during the past few years with a truly unique approach when compared to our competitors, with the implementation of a thorough transformation process. We are fully aware of the adversity and uncertainty of the general, macro-economic, and geo-political scenario as well as of the more specific children fashion industry and of certain geographical markets that have always been strategic for us. It is, therefore, not recklessness, blindness, or lack of thoroughness, but rather a clear vision and entrepreneurship that will lead us with determination along the next steps for the future strategic change, towards which we look with confidence".

2022 consolidated financial highlights

The Group reports revenues of Euro 46.4 million, up 6% (at current exchange rates, +5% at like-for-like exchange rates) compared to Euro 43.6 million in 2021. In 2022, the pandemic continued to impact Asia (particularly China, Hong Kong and Taiwan), although normal conditions have gradually returned. Together

1 Adjusted figures mainly reflect adjustments for extraordinary costs concerning the DOS openings and closures over the last 12 months and a number of one-off items.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy Partita IVA 01163300518

www.monnalisa.com - e-mail:[e-mail] - ph. +39 0575 9850.1 - fax [phone]

MONNALISA®

with the impacts from the conflict in Ukraine, this has resulted in a slowdown of tourism which has weighed on retail sales.

Against this backdrop, the Group has substantially recovered sales volumes more in line with the pre-pandemic years (Euro 47.9 million in 2019).

The distribution of revenues by channel indicates a 3% increase for the direct, physical and the e- commerce (42% compared to 39% in 2021), in line with the targeted strategy channelling the main investments, bringing on-streammajor technological investments to support the digital platform, in addition to a more focused full funnel digital marketing and communication strategy and the use of marketing automation tools to provide customers with a more customised experience and boost the conversion rate and the execution of the retail plan which is delivering very strong results in terms of growth and improved earnings.

The wholesale channel, despite the complex political and economic backdrop within a number of key company markets, has maintained stable sales (in line with 2021) due to the postponement of deliveries of the new collection to the initial months of 2023. In Q4 2022 in fact, the share of revenues from spring-summer 2023 pre-collection shipments was lower than targeted and the 2021 result, with an impact on revenues, the interim and year-end results, in addition to the net financial position.

During the year, the company further executed its strategy to boost retail channel profitability, also through managing the turnover of the DOS (directly operated stores) and DOO (directly operated outlets) portfolios, closing less profitable direct sales points and opening new stores with greater profit generating potential. At year-end, the Monnalisa Group overall had 49 direct sales points, compared to 51 at December 31, 2021.

December 31 at current exchange rates

	Euro thousands	2022	%	2021	%	Change	Change %
	Retail	16,763	36%	13,996	32%	2,767	20%
	Wholesale	26,680	58%	26,667	61%	14	0%
	Direct B2C	2,932	6%	2,968	7%	(37)	-1%
	Total	46,375	100%	43,631	100%	2,744	6%
			December 31 at like-for-like exchange rates
	Euro thousands		2022	%	2021	%	Change	Change %
	Retail		16,510	36%	13,996	32%	2,514	18%
	Wholesale		26,389	58%	26,667	61%	(277)	-1%
	Direct B2C		2,922	6%	2,968	7%	(46)	-2%
	Total		45,822	100%	43,631	100%	2,191	5%

Revenues by region indicate 17% growth on 2021 for the European market and 8% for the Italian market, with "Rest of the world" revenues decreasing 3%, while however again accounting for 33% of total sales.

December 31 at current exchange rates

Euro thousands	2022	%		2021	%	Change	Change %
Italy	17,230		37%	15,982	37%	1,248	8%
Europe	13,916		30%	11,943	27%	1,973	17%
Rest of the World	15,230		33%	15,707	36%	(477)	-3%
Total	46,375		100%	43,631	100%	2,744	6%

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy Partita IVA 01163300518

www.monnalisa.com - e-mail:[e-mail] - ph. +39 0575 9850.1 - fax [phone]

MONNALISA®

December 31 at like-for-like exchange rates

Euro thousands	2022	%		2021	%	Change	Change %
Italy	17,230		38%	15,982	37%	1,248	8%
Europe	14,356		31%	11,943	27%	2,413	20%
Rest of the World	14,236		31%	15,707	36%	(1,471)	-9%
Total	45,822		100%	43,631	100%	2,191	5%

Reported consolidated EBITDA was Euro 5.8 million at current exchange rates (Euro 6 million at like-for- like exchange rates), against Euro 5.1 million in 2021, confirming the maintenance of the margin in spite of significant inflation. The improved result was due to the strict implementation of a spending review and higher revenues, absorbing overheads in a more balanced manner.

Adjusted consolidated EBITDA was Euro 5.9 million. The adjustments to EBITDA mainly concern the DOS openings and closures in the year and a number of one-off costs incurred.

Consolidated EBIT reported a loss of Euro 2.05 million, improving on a loss of Euro 2.7 million in 2021. Parent company EBIT was in line with 2021.

The Consolidated Net Result was a loss of Euro 3.25 million (a loss of Euro 2.1 million in 2021), due to the reduced benefit from currency differences and tax management. The Net Result of the parent company Monnalisa S.p.A. is Euro -0,195 million.

The Group's Adjusted Net Financial Position was a debt of Euro 8.6 million, in line with 2021, while the Net Financial Position2 gross of current and non-current liabilities relating to IFRS 16 amounted to Euro

28.9 million, compared to Euro 29.4 million at December 31, 2021. The parent company Net Financial Position was a debt of Euro 8.6 million, in line with 2021.

The Group during the year confirmed its capacity to generate cash through operations, despite the increase in revenues. The Group's growth strategy focused on the D2C channel, which features a reduced working capital cycle, combined with good inventory management, is contributing to cash generation.

This allowed a reduction in the long-term debt of over Euro 3 million.

Investment activities in the year absorbed approx. Euro 0.7 million, distributed equally between property, plant and equipment, mainly related to the opening of new sales points, and intangible assets, which cover leasehold improvements related to the new openings and the development of the site for online sales and the digital transformation. Group shareholders' equity amounts to Euro 24 million.

Subsequent events to year-end and outlook

The climate of uncertainty which was a feature of 2022 due to the ongoing impacts of the COVID-19 pandemic on tourism numbers and the economies of certain countries (mainly China) and the geopolitical tensions related to the Russia and Ukraine conflict, which brought another challenge to the general economy and specifically in terms of the growth and consolidation of revenues and international business opportunities, may continue to affect consumption and the habits and movement of individuals, with a potential impact on forecast revenues. In particular, the post-pandemic situation in China, Hong Kong and Taiwan has slowed the economic recovery, with the expected signs of recovery therefore not yet apparent in the Group's operating and financial performance.

2 The Adjusted Net Financial Position is calculated by excluding the current and long-term financial payables calculated as per IFRS 16.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy Partita IVA 01163300518

www.monnalisa.com - e-mail:[e-mail] - ph. +39 0575 9850.1 - fax [phone]

MONNALISA®

The monetary policy adopted by the European central bank and the inflationary pressures that have not yet abated have disrupted the sector production chain.

Against this backdrop, the Group seeks to maintain and consolidate strategic relations with its industrial and financial partners in order to weather the current phase of economic transition by tapping into the strategic opportunities expected to emerge in the Group's sectors.

At the beginning of 2023, the Standard Ethics3 rating agency has confirmed an EE- (adequate) or "investment grade" rating for the Monnalisa Group, placing it among the other top comparable sector companies.

The ESG rating by Standard Ethics was assigned to the Monnalisa Group for the first time in 2022, confirming the Group's growth in the ESG (Environmental, Social, Governance) sphere.

In addition, the Standard Ethics Agency updated the medium to long-term expectation to EE+ over a 4-5 year timeframe. This improvement follows the work undertaken in 2022 by the Group primarily on sustainability governance and sustainable development strategies, aligned with much of the voluntary guidance of the United Nations, OECD and European Union, in parallel with the non-financial reporting drawn up according to international standards complying with ESG practices and policies that are continually evolving in line with the changing needs in terms of sustainability.

On March 24, 2023, the company Monnalisa S.p.A. acquired a store-use building in the centre of Florence. The property is currently leased to third parties, and the purchase was financed through medium to long-term financing.

Shareholders' Meeting call and Documentation

The Board of Directors, in accordance with the By-Laws and the applicable regulations, has called the Shareholders' Meeting for April 28, 2023, in first call, and for May 3, 2023 in second call, in order to approve the statutory financial statements and review the consolidated financial statements, at the times and places to be communicated in the relative notice, which shall be published according to the times and means required by the applicable regulations.

Documentation shall be made available to the public according to the times and means set out by the regulation, and also on Monnalisa's website, www.monnalisa.eu/it/in the "Investor Relations/Financial Report" section.

Proposal for the allocation of the net profit

The Board of Directors approved the proposal to the Shareholders' Meeting to allocate the net loss of the parent company of Euro 195,016 to retained earnings/(accumulated losses).

This Press Release is available on the company website www.monnalisa.eu/it/, in the "Investor Relations/Press Releases" section and at www.emarketstorage.com.

*****

Monnalisa SpA (Ticker MNL), listed on the Euronext Growth Milan (previously AIM Italia) market since July 12, 2018 and engaged in the high-end childrenswear segment for fifty years, was founded in Arezzo in 1968. It distributes in over 60 countries, both through direct flagship stores and at the world's best-known Department Stores and over 500 multibrand sales points. Focusing on high-quality and made in Italy style, its research and development investment is matched by a commitment to sustainability. The company complies with the SA8000 regulation and environmental certification ISO 14001.

3 Standard Ethics Ltd is anindependent sustainability rating agency based in London. It qualifies as a "self-regulated sustainability rating agency" for having voluntarily adopted - in the absence of rules on ESGRatings - the model and constraints of credit rating agencies. The agency issues the Standard Ethics Rating, a sustainability and governance rating based on "compliance" with the principles and voluntary guidelines of the United Nations, of theOrganisation for Economic Cooperation and Development(OECD) and theEuropean Union.

Assessing compliance with international guidelines only, Standard Ethics adopts an "ethic neutral" principle for its assessments

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy Partita IVA 01163300518

www.monnalisa.com - e-mail:[e-mail] - ph. +39 0575 9850.1 - fax [phone]

MONNALISA®

Contacts:
Monnalisa S.p.A.	IR Top Consulting	Euronext Growth Advisor
Issuer	Investor & Media Relations	CFO SIM S.p.A.
Corso Buenos Aires, 1	Via Bigli, 19	Via dell'Annunciata 23/4
20124 Milan	20121 Milan	20121 Milan
Elena Losa	Tel. [phone]	Tel. [phone]
Tel. [phone]	[e-mail]	[e-mail]
[e-mail]	[e-mail]

The following financial statements are annexed to this press release4:

• 2022 Consolidated Income Statement
• Consolidated Balance Sheet at December 31, 2022
• 2022 Monnalisa S.p.A. Income Statement
• Monnalisa S.p.A. Balance Sheet at December 31, 2022

4 The attached statements, in addition to the tables in the press release, are still unaudited.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy Partita IVA 01163300518

www.monnalisa.com - e-mail:[e-mail] - ph. +39 0575 9850.1 - fax [phone]