OVS S p A : Proposed share capital increase approved unanimously by the Shareholders’ Meeting – The Board of Directors meeting approved the results of the third quarter 2020

Strong sales growth in the quarter. Excellent profitability and cash generation. Proposed capital increase up to 80 million Euro to capture M&A opportunities approved unanimously by the Shareholders' Meeting

• Net sales in the third quarter of €361 million, up 6.1% compared with the same period of 2019 and up 10% to the first day of the new restrictions implemented by the government to tackle the pandemic in the second half of October. In the nine months, sales decreased by 25.7%, less than proportionally compared to the days the network was closed due to the imposed lockdown.
• E-commerce sales grew by 50% in the first nine months.
• The Group once again outperformed its core market, which contracted by 3.2% during the quarter. Market share grew to 8.2% (up 15 bps compared with the previous year).
• EBITDA came in at €38.1 million for the third quarter, in line with 2019 for the second consecutive quarter, despite the negative market environment.
• The net financial position was €356.9 million, improving compared with 31 October 2019.
• The Shareholders' Meeting held today approved unanimously the capital increase for payment and in a divisible way, to take place by 31 July 2021, for a maximum amount of €80 million.
• Press rumors concerning OVS' interest in the Stefanel brand confirmed.

THIRD-QUARTER CONSOLIDATED RESULTS

€ mln	3Q20	3Q19
(A)	(A)

Net Sales	361.0		340.3
EBITDA	38.1		38.6
EBITDA%			10.5%		11.3%
EBIT			23.4		23.2
EBIT%		6.5%		6.8%
PBT		17.5		18.1
Net Financial Position	356.9		395.2
Market Share	8.2%	8.1%

Chg. Chg. %

20.7 6.1%

(0.5) (1.2%)

0.2 0.9%

(0.5) (3.0%)

38.3

+15ppt

1. Only the adjusted results (the so-called "managerial" results) have been reported as they are believed to show the actual performance of the business: in particular, they do not reflect (i) the application of IFRS 16 and (ii) mark-to-market accounting at the net financial position level (-€5.3 million).

3Q20 Financial Results

1

Statement from the Chief Executive Officer, Stefano Beraldo

The performance in the third quarter of the year, when stores in many areas of the country were once again closed from late October, demonstrated OVS's resilience and its role in the Italian clothing market. Sales grew by 6.1% during the quarter and by approximately 10% before the mandatory closure of part of the network, resulting in EBITDA in line with the previous year and cash generation of almost €54 million, while in the third quarter of 2019 the cash flow was equal to €19 million.

Partly as a result of the pandemic, the dynamics of the industry in which we operate are changing dramatically and rapidly, and customers are driven by a growing awareness that is increasingly evident in their purchases.

As our sales performance shows, including after the first lockdown, the OVS Group has been able to position itself effectively in this environment, keeping pace with trends as well as consumer requests and needs. Providing novelty, offering quality at the right price, and meeting real product and distribution channel needs are fundamental to OVS's offering. The digital channels and services we offer fulfil the needs of even the most demanding customers.

Our online growth in the first nine months of the year shows that our brands are sought after in all available channels.

Our Group is steadily expanding its offering in both the digital and physical channels, including by adding new brands that create synergies with our offering, not only in the same segment, but also in complementary segments.

The introduction of Piombo in menswear has attracted new consumers, offering a high-quality product and extending the price range and therefore the margin in some product categories. We are very pleased with the results achieved so far. Another example is the introduction of the branded products of "The Body Shop", the international natural cosmetics brand.

In addition to new store openings, we are therefore increasingly investing in products and services, in the supply chain and in digital.

These strategic lines will leverage the versatility of our offering: OVS will increasingly be a repository of innovative, unique and inclusive commercial proposals; Upim, which has a more functional offering with non-seasonal segments, such as CROFF- branded homeware, will pursue the growth that has been a distinguishing feature in recent years.

Given the current regulatory environment governing store openings and the uncertainty about its possible developments, it is difficult to estimate whether the benefits achieved so far can be considered sufficient for the achievement of the economic objectives for the whole year; more confidence in the reachability of the target in terms of net financial position.

In the medium term, in a context where many players are leaving the Italian market, areas of growth and consolidation are now more attractive and also include offering segments with "bridge" price bands, allowing us to capitalise even more on our expertise by leveraging the quality of our products.

With reference to the press rumors that emerged regarding the possible interest of OVS in the tender procedure relating to the Extraordinary Administration of Stefanel SpA, it should be noted that a binding offer was presented aimed at the acquisition of some assets of the aforementioned Company, including in particular the historical brand of the company. In consideration of the size of this offer, related financial needs are already largely in the current availability of the Group.

We would like to thank our Shareholders, who have also shown, through the outcome of today's Shareholders' Meeting, their full support and their endorsement of our Group's growth strategies.

3Q20 Financial Results

2

CONSOLIDATED RESULTS FOR THE FIRST NINE MONTHS OF THE YEAR

€ mln	31.10.2020		31.10.2019		Chg.	Chg. %
Adjusted		Adjusted

Net Sales	736.7		990.9	(254.2)	(25.7%)
EBITDA	40.1		101.1	(60.9)	(60.3%)
EBITDA%			5.4%		10.2%
EBIT			(3.1)		57.4		(60.5)	n.s.
EBIT%			-0.4%		5.8%
PBT			(19.5)		43.3		(62.8)	n.s
Net Financial Position	356.9		395.2	38.3
Market Share	8.2%	8.1%			+15ppt

NB: in order to give a clearer picture of the Group's performance, the figures in this document have been adjusted as they are believed to show the actual performance of the business. In particular, the adjusted income statement and statement of financial position values exclude the accounting effects of IFRS 16. See below for more details.

3Q20 Financial Results

3

NET SALES

Total sales for the first nine months of the year, amounting to €736.7 million, still reflect the first-quarter lockdown, although they recovered strongly (the decrease in the first three months of the year was 67.7%, reduced to 25.7% in the first nine months).

All the brands recovered steadily, but Upim's sales network, more extensive in small catchment areas, performed better than that of OVS, which is more present in large city centres and which therefore experienced reduced flows due to office closures and the drop in tourism.

NET SALES: aggregate performance		NET SALES: brand performance
€mln	9M20	9M19		Chg.	Chg. %
DOS & e-commerce	594.1	802.9	(208.8)	(26.0%)
Franchise & Marketplace 142.6	188.1	(45.5)	(24.2%)
Total	736.7	990.9	(254.2)	(25.7%)

EBITDA

The EBITDA recorded in the third quarter, which was in line with 2019 and amounted to €38.1 million, reflected significant sales growth in the quarter, although the margins contracted due to greater promotional pressure resulting from the greater weight of the spring/summer sales, which only began in August, and the strategy of extending promotions to the first half of September to take advantage of higher temperatures than last year. The decrease in EBITDA in the nine months compared with the previous year essentially reflects the temporary loss of EBITDA registered in the first quarter due to the prolonged store lockdown (in the first quarter of 2020, EBITDA decreased by €59.2 million).

Both the main brands performed in line with the previous year during the quarter, with the Upim brand benefiting more than OVS from the franchise channel, which is more profitable and more focused on the kid's segment.

EBITDA: brand performance

3Q20 Financial Results

(A): to give a clearer picture of the Group's performance, the figures in this document have been	4
adjusted as they are believed to show the actual performance of the business.