UNIEURO S.P.A.: STRONG RESULTS OF THE FIRST HALF 2020/21 CONFIRMED

Corporate Press Release

UNIEURO S.P.A.: STRONG RESULTS OF THE FIRST HALF

2020/21 CONFIRMED

OMNICHANNEL APPROACH AND RAPID RESPONSE TO COPE WITH THE

SECOND WAVE OF COVID-19

• Record half-yearly revenues of 1,079 million Euro (+1.8% compared to the first half of 2019/20), thanks to e-commerce (+91.9%) and Indirect channel (+7.6%)
• Economic and financial results steadily growing, including the non-repeatable effects of the actions taken to contain the impact of the epidemic1:

1. EBIT Adjusted2 more than tripled to €22.5 million (€6.3 million in the first half of 2019/20)

1. Adjusted Net Result3 of €14.5 million (negative for €1 million in the same period of the previous year)

1. Cash flow reversed despite the seasonality: positive net cash flow4 of 28.5 million Euros compared to the absorption of 22.7 million recorded in the first half of 2019/20

• 1. Net cash5 of 56.1 million Euros (29.6 million as at 29 February 2020) confirming the company's strengthened soundness
• Good performance of revenues in September and October. Limited impact so far from new restrictive measures currently in place that involve the closure on public holidays and pre-holidays of about 50% of direct stores up to December 3
• Sustainability Committee established

Forlì, 12 November 2020 - The Board of Directors of Unieuro S.p.A. (MTA: UNIR), the Italian leader in the retail market of consumer electronics and household appliances, met today chaired by Stefano Meloni to examine and approve the Interim Financial Report of the Group at 31 August 20206.

Following a first quarter significantly impacted by the spread of the Covid-19 epidemic, the combined effect of the e-commerce boom, the gradual but marked recovery of the other channels in the June-August period, as well as the actions taken by the management1, enabled Unieuro to close the half-year with a new revenue record, strong growth in profitability and a sounder financial structure than ever before.

In particular, the Company booked revenues up by 1.8% to €1,079 million, Adjusted EBIT2 more than tripled to €22.5 million and Adjusted Net Result3 up sharply to €14.5 million,

1

All data contained in this press release are consolidated data. The scope of consolidation includes the Parent Company Unieuro S.p.A., the wholly-owned subsidiary Monclick S.r.l. (consolidated from 1 June 2017) and the wholly-owned subsidiary Carini Retail S.r.l. (consolidated from 1 March 2019 and finally merged into Unieuro S.p.A., effective as from 1 September 2020).

Economic and financial figures reflect the adoption of IFRS 16 accounting principle, which came into force on 1st January 2019. Unieuro presents and comments on such measures, unless otherwise indicated.

compared to a negative €1 million in the first half of last year. While income results were, as always, influenced by the seasonal nature of the business, they also benefited from the non- repeatable actions taken to tackle the epidemic1.

Similarly, non-repeatable benefits contributed to the positive cash flow4 dynamics, which reported an true turnaround: although the seasonal nature of the business normally involves the absorption of liquidity in the first half of the year, on 31 August 2020 Unieuro reported a Net Cash position5 of 56.1 million Euros (from a Net Financial Debt of 49.5 million Euros a year earlier), well above the 29.6 million Euros recorded on 29 February 2020.

"The largely positive six-month results approved today capture a profitable and sound Unieuro, a company that is also strategically well-positioned to face the peak season in an emergency context and offer first-class service to a clientele increasingly in need of household appliances and devices for education, business and home entertainment".

"After the good performance reported in September and October, the second wave of Covid-19 did not catch us unprepared: despite the current forced closure of about 50% of direct stores on public holidays and pre-holidays as well as the possible tightening of restrictions at any time, we are ready to face any scenario by leveraging on our rapid response ability - which has been widely demonstrated

• and on our omnichannel strategy, the real response to retail challenges - today more than ever ".

Giancarlo Nicosanti Monterastelli, CEO of Unieuro.

Revenues at 31 August 2020

In the half year in question, Unieuro earned Revenues of €1,079 million, an increase of 1.8% compared to €1,059.5 million in the same period of the previous year.

Thanks to an extremely positive second quarter, in the first six months of the financial year 2020/21 Unieuro reported an unprecedented revenue record: an even more significant performance in light of the impact on the first quarter of Covid-19, which had led to a marked decrease in terms of turnover.

In particular, the June-August quarter featured the double-digit performance of the Retail channel, the most important in terms of revenues and margins, thus recouping more than a third of the channel revenue shortfall in the first quarter. Online growth was once again buoyant, albeit decelerating compared to the first quarter in the wake of business normalization. Finally, the Indirect channel has reached a positive six-month balance

2

All data contained in this press release are consolidated data. The scope of consolidation includes the Parent Company Unieuro S.p.A., the wholly-owned subsidiary Monclick S.r.l. (consolidated from 1 June 2017) and the wholly-owned subsidiary Carini Retail S.r.l. (consolidated from 1 March 2019 and finally merged into Unieuro S.p.A., effective as from 1 September 2020).

Economic and financial figures reflect the adoption of IFRS 16 accounting principle, which came into force on 1st January 2019. Unieuro presents and comments on such measures, unless otherwise indicated.

compared to the corresponding period 2019/20, thanks to the fortunate competitive and geographical positioning of the affiliate network, which has benefited from the peculiar market conditions.

The evolution of like-for-likerevenues7 - i.e. the comparison of sales with those in the same period last year based on the same scope of operations - is widely positive and amounts to +3.9%. Excluding from the scope of analysis sales outlets adjacent to newly opened stores, and therefore not included in the like-for-like computation, like-for-like sales recorded an even stronger growth of +6.5%.

Revenues by sales channel

(in millions of Euro and as a		Period ended		Changes
percentage of revenues)
31 August 2020	%	31 August 2019	%		%
Retail	675.8	62.6%	755.9	71.3%	(80.0)	(10.6%)
Online	215.4	20.0%	112.2	10.6%	103.2	91.9%
Indirect	128.1	11.9%	119.1	11.2%	9.0	7.6%
B2B	50.7	4.7%	53.9	5.1%	(3.2)	(5.9%)
Travel	9.0	0.8%	18.6	1.8%	(9.5)	(51.3%)
Total revenues	1,079.0	100.0%	1,059.5	100.0%	19.5	1.8%

The Retail channel (62.6% of total revenues) - consisting of 243 direct stores located in areas deemed commercially strategic and characterized by different sizes in terms of surface area - posted a decline of 10.6%, to € 675.8 million against € 755.9 million recorded on 31 August 2019. In the May-August 2020 period, sales grew significantly compared to the same period in 2019, thanks to both the easing of restrictions and the actions taken by Unieuro to support the customer experience in an omnichannel perspective. These phenomena partially offset the sharp drop recorded during the lockdown, due to the voluntary closure of the network from 14 to 29 March and the dramatic plummeting of traffic due to restrictions on the movement of people and social distancing regulations, which particularly penalised stores located outside city centres, in large shopping malls and in shopping parks.

The Online channel (20% of total revenues) posted a growth of 91.9%, pushing revenues to €215.4 million compared to €112.2 million in the same period of the previous year. This downright exceptional performance is the result of both the emergency situation that has arisen - which has led customers to favour e-commerce over physical stores - as well as of the prompt response by Unieuro, which tackled the lockdown by tactically refocusing its

3

All data contained in this press release are consolidated data. The scope of consolidation includes the Parent Company Unieuro S.p.A., the wholly-owned subsidiary Monclick S.r.l. (consolidated from 1 June 2017) and the wholly-owned subsidiary Carini Retail S.r.l. (consolidated from 1 March 2019 and finally merged into Unieuro S.p.A., effective as from 1 September 2020).

Economic and financial figures reflect the adoption of IFRS 16 accounting principle, which came into force on 1st January 2019. Unieuro presents and comments on such measures, unless otherwise indicated.

marketing activities, both mainstream and digital, on the Online channel. Its dual presence on the web, guaranteed by two well-known and distinct brands such as Unieuro and Monclick, has further contributed to the success achieved. Online growth in the second quarter was very sharp, but decelerating compared to the first quarter in the wake of business normalisation.

The Indirect channel (11.9% of total revenues) - which includes sales to the network of affiliated stores and revenues generated in the segment of Mass Merchandisers through partnerships with leading industry operators, for a total of 255 stores - reported revenues of

128.1 million Euros, up 7.6% compared to 119.1 million in the same period of the previous year. Although the restrictive measures imposed by the authorities had a negative impact on the turnover and traffic of the affiliated stores too, the distinctive features of these stores - small to medium size and focused on proximity services - resulted in a significant resilience of the business, which has gradually normalized with the start of the so-called "Phase 2" enabling the complete recovery of the revenue shortfall in the first quarter.

The Business-to-Businesschannel (4.7% of total revenues) - which caters to business customers, including foreign customers, operating in sectors other than that of Unieuro, such as hotels and banks, as well as operators purchasing electronic products to be distributed to their regular customers or to employees for loyalty points, prize contests, or incentive plans (referred to as B2B2C segment) - reported sales of 50.7 million euros, down 5.9% compared to 53.9 million euros in the same period of the previous year, slightly downward compared to the dynamic of the first quarter. By its very nature, the channel was only marginally affected by the effects of the pandemic.

Lastly, the Travel channel (0.8% of total revenues) - made up of 11 directly operated stores located at main public transport hubs such as airports and railway or metro stations - recorded a decrease in revenues to Euro 9.0 million (-51.3%). The performance was inevitably affected by the collapse of air traffic brought about by the pandemic and the total or partial closure of some airports.

Revenues by product category8

4

All data contained in this press release are consolidated data. The scope of consolidation includes the Parent Company Unieuro S.p.A., the wholly-owned subsidiary Monclick S.r.l. (consolidated from 1 June 2017) and the wholly-owned subsidiary Carini Retail S.r.l. (consolidated from 1 March 2019 and finally merged into Unieuro S.p.A., effective as from 1 September 2020).

Economic and financial figures reflect the adoption of IFRS 16 accounting principle, which came into force on 1st January 2019. Unieuro presents and comments on such measures, unless otherwise indicated.