Safilo S p A : FY 2023 Results Presentation

F Y 2 0 2 3 R e s u l t s

March 14, 2024

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DISCLAIMER

This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events.

Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and facts, most of which being beyond the control of the Group. Therefore actual results could differ, even to a significant extent, with respect to those reported in the statements.

"In a complex year like 2023, in which a tense and unstable geopolitical and macroeconomic environment added to our direct challenges, it was particularly important for us to achieve a level of revenues and adjusted operating margins very close to the strong performance recorded in 2022.

The passion and constant dedication of Safilo's people allowed us to further strengthen our Group on all its main strategic pillars, from our brand portfolios to our supply chain, to the sustainability of our business model in the long-term."

Angelo Trocchia, CEO

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FY 2023 RESULTS

COUNTERING OUR HEADWINDS…

• Challenging market conditions in North America
• Significant business drop in former GV chains
• Forex and inflationary pressures

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…WHILE WORKING ON OUR PRIORITIES

FY 2023 RESULTS

• Reviewing our industrial footprint:
• • Disposal of the Longarone plant, full employment of all its workers and preservation of the sector's know-how

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SOLIDIFYING OUR BRAND PORTFOLIO

FOR THE LONG-TERM

FY 2023 RESULTS

• Early renewal of core partnerships:
• • Unprecedented visibility on the license portfolio (around six years)

NEW:

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SOLIDIFYING OUR BRAND PORTFOLIO

FOR THE LONG-TERM

FY 2023 RESULTS

• Progress on the pillars of our mid-term business plan:
• • home brands at ̴44%2 of sales from 42%
  • online channels at ̴16%2 of sales from 15% thanks to Blenders and Smith's DTC business

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FY 2023 RESULTS

ECONOMIC & FINANCIAL HIGHLIGHTS

• 2023 organic1sales approach 2022 level and grow net of the business in the former GV chains
• Q4 sales growth @cFX marks the best performance of the year
• Strong improvement in gross margin reinvested in the strategic projects to support the Group's long-term growth:
  adjusted3 EBITDA margin just slightly below 2022 level
• Positive Free Cash flow in all quarters of the year, leading to lower net debt and financial leverage

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FY 2023 RESULTS

SALES PERFORMANCE

FY 2023 TOTAL

1,024.7 €M -4.8%/-2.3%@cfx

+1.7% organic1,ex GV

Q4 2023

239. 6 €M -2.4%/+2.0% @cfx,+3.6% ex GV

• Positive FY organic1 and ex GV performance driven by home brands, in particular Carrera, Polaroid and Blenders
• Boss, Tommy Hilfiger, Carolina Herrera and David Beckham, our outperforming licenses
• Q4 back to growth in both North America and Europe

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FY 2023 RESULTS

SALES PERFORMANCE

FY 2023 NORTH AMERICA

452.9 €M -9.0%/-6.4% @cfx

-3.7% organic1

Q4 2023

• 111.9 €M -2.2%/+3.0% @cfx

• Prudent order behaviour of customers and poor sun season affecting contemporary eyewear segment in traditional channels
• Smith's sport business penalized by customers' destocking in the market for bike products
• Q4 improvement reflecting strong Blenders' and Smith's DTC, while sport shops impacted by weak start to the winter season