Unieuro S p A : Annual Financial Report to 28 February 2023

ANNUAL FINANCIAL REPORT 2022/23

Unieuro S.p.A.

Palazzo Hercolani - Via Piero Maroncelli, 10 - 47121 Forlì (FC) - Italy Companies Register of Forlì-Cesena, REA registration No. 177115 Country of registration - Italy

Tax and VAT No. 00876320409

Description of the nature of the activity: Retail and wholesale trade, import and export distribution of household appliances and consumer electronic goods through physical outlets and through e-commerce. Installation and maintenance of all commercially available equipment. Organisation and management, including indirectly, of serving food and beverages to the public within the outlets.

Parent company name - Unieuro S.p.A..

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CONTENTS
Directors' Report
ANNUAL FINANCIAL REPORT 2022/23	1
DIRECTORS' REPORT	11
Letter to the Shareholders from the Chairperson of the Board of Directors	12
CEO's letter to the Shareholders	13
1. Introduction	14
2. Methodological note	15
3. Accounting policies	16
Key financial performance indicators	17
4. Strategy and Business Model	19

4.1 Maximising the experience and level of service provided to the end customer throughout

the entire journey

19

4.2 The purpose and rethinking of the strategy from a "Value & Sustainability driven"

perspective

20

4.3 Developing an increasingly competitive offering: extending the range of private labels21

5. Market performance	22
6. Group operating and financial results	24
6.1	Consolidated revenues	24
6.1.1 Consolidated revenues by channel	24
6.1.2 Consolidated revenues by category	25
6.2	Consolidated operating profit	27
6.3	Non-recurringexpenses/(income)	30
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6.4	Net result	31
6.5	Cash flows	33
6.5.1 Consolidated Adjusted Levered Free Cash Flow	33
7. Statement of financial position	35
8. Performance of the parent company Unieuro	38
9. Reconciliation statement of parent company's shareholders' equity and net result with Group
shareholders' equity and net result	40
10.	Investments	41
11.	IFRS 16 Impacts	42
12.	Corporate governance and ownership structure	43

13. Information on related party transactions and non-recurring, atypical or unusual

transactions	44
14. Information on Corporate Boards	46
14.1. Stock option plans	46
Long Term Incentive Plan	46
2020-2025Performance share plan	48
2023-2028Performance share plan	50
14.2. Unieuro treasury shares	51

15. Option to waive the requirement to publish a disclosure document in cases of insignificant

transactions	52
16.	Personnel-relatedinformation	53
17.	Management and coordination	55
18.	Main risks and uncertainties to which the Group is exposed	56
18.1.	Strategic and operational risks	56

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18.2.	Legal and non-compliancerisks	61
19.	Significant events during the year and after the end of the year	63
20.	Outlook	66
CONSOLIDATED FINANCIAL STATEMENTS	67
NOTES	72
1. INTRODUCTION	72
2. ACCOUNTING POLICIES ADOPTED FOR THE PREPARATION OF CONSOLIDATED FINANCIAL
STATEMENTS AND SUMMARY OF ACCOUNTING PRINCIPLES	73
2.1	Basis of preparation of Consolidated Financial Statements	73
2.2	Basis of Presentation of the Consolidated Financial Statements	73
2.3	IFRS Compliance Statement	74
2.4	Consolidated Financial Statements	74
2.5	Consolidation principles and consolidation scope	75

2.6 Use of estimates and valuations in the preparation of Consolidated Financial Statements

76

2.7	Main accounting policies	80
2.7.1	Main accounting policies	80
2.8	New accounting standards	97
3. FINANCIAL RISK MANAGEMENT	98
3.1	Credit risk	98
3.2	Liquidity risk	99
3.3	Market risk	100
3.3.1	Interest rate risk	100
3.3.2	Currency risk	100
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3.4 Fair value estimate	101
4. INFORMATION ON OPERATING SEGMENTS	103

5. EXPLANATORY NOTES TO INDIVIDUAL ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS

104

5.1	Plant, machinery, equipment and other assets	104
5.2	Goodwill	106
5.2.1	Impairment test	107
5.3	Intangible assets with finite useful lives	112
5.4	Right-of-useassets	113
5.5	Deferred tax assets and deferred tax liabilities	114
5.6	Other current assets and other non-currentassets	115
5.7	Inventories	116
5.8	Trade receivables	117
5.9	Current tax assets and liabilities	119
5.10	Cash and cash equivalents	120
5.11	Shareholders' Equity	121
5.12	Financial liabilities	125
5.13	Employee benefits	126
5.14	Other financial liabilities	128
5.15	Provisions	130
5.16	Other current liabilities and other non-current liabilities	131
5.17	Trade payables	132
5.18	Revenues	133
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