Unieuro S.p.A.: Double-digit growth in revenues and profits in the first half of FY 2021/22. Post-Covid normalization in progress

CORPORATE PRESS RELEASE

UNIEURO S.P.A.: DOUBLE-DIGIT GROWTH IN REVENUES AND PROFITS IN THE FIRST HALF OF 2021/22. POST-COVID NORMALIZATION IN PROGRESS

• Half-yearrevenues up 17.5% to Euro 1,268.2 million compared to the corresponding 2020/21 period, +19.7% compared to the pre-Covid year
• Business back to normal after the emergency with +29.9% for the direct network, +10.3% for affiliates, and -12.8% for e-commerce. TV sales boom due to summer sports events, waiting for frequency migration
• Profitability further improving despite the challenging comparison with the first half of 2020/21, benefiting from the actions undertaken to contain the impact of the epidemic1:

1. Adjusted EBIT2 +20.3% to Euro 27.1 million compared to Euro 22.5 million in the same period of last fiscal year and Euro 6.3 million in the pre-Covid period

• 1. Adjusted net result3 +54% to Euro 22.4 million compared to Euro 14.5 million in the same period of the past fiscal year and to the substantial pre-Covid balance (Euro -1 million)
• Net cash4 at Euro 91.2 million compared to Euro 154.8 million at the beginning of the fiscal year, after the payment of Euro 53.8 million in dividends
• Guidance on the current fiscal year confirmed in the light of the good performance of the first eight months of the year, despite increasing supply risks

Forlì, 11 November 2021 - The Board of Directors of Unieuro S.p.A. (Euronext STAR Milan: 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 at 31 August 2021.

In the first half of the financial year 2021/22, Unieuro reported a double-digit growth in revenues and profitability, despite comparison with the corresponding period 2020/21 being particularly challenging. In fact, in response to the uncertainty and volatility of revenues caused by the outbreak of the pandemic, last year the Management had adopted unique actions with beneficial effects on both profitability and cash generation.

Revenues, which totalled Euro 1,268.2 million, achieved a new record in a seasonally weak six-month period for sales of electronics and household appliances. The 17.5% growth over the first half of 2020/21 was driven by the physical network (+29.9% direct stores, +10.3% affiliates), which had been affected by the first lockdown between March and May 2020. Online sales declined by 12.8%. At category level, the boom in television sales triggered by the imminent frequency switch-off and the introduction of the TV Bonus by the Government led to a 42.9% increase in revenues for the Brown product category.

Unieuro S.p.A.	1
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

CORPORATE PRESS RELEASE

Compared to the first half of 2019/20, the last pre-Covid period, there was an even greater increase in revenues: +19.7%, with strongly positive performances in the three main channels - Retail, Indirect and Online, the latter up by 67.3% - and in all product categories.

Thanks to high sales volumes and to a rebalancing of the channel and category mix, profitability also improved significantly in the six-month period considered, despite the absence of the unique cost savings reported in the corresponding period of 2020/21, which had particularly benefited labour costs and leases. Therefore, the Adjusted EBIT2 rose by 20.3% to Euro 27.1 million, while the Adjusted Net Profit3 reached Euro 22.4 million (+54%) also favoured by a major tax benefit.

Cash flow trends, affected by normal seasonal factors and measured by the Adjusted Free Cash Flow5, show the absorption of Euro 12.4 million in the semester considered, to be summed up with the distribution of Euro 53.8 million of dividends in June. Therefore, Net cash4 amounted to Euro 91.2 million at August 31st.

In the light of the strong half-year results and the good performance of September and October, the Management confirmed the guidance on the current fiscal year disclosed last June 10th, despite the uncertainties linked to the growing risks concerning the availability of goods.

"We are proud to present positive half-yearly results to the market from every point of view, with marked improvements in revenues and profits, also compared to a year, 2020, that had benefited from special actions on costs that cannot be repeated because they were associated with measure undertaken to face the Covid emergency.

The consumer electronics and household appliances market remains strong and has not so far been significantly affected by the manufacturing challenges that impacted so many global industries.

Although the supply chain visibility is today much lower than in the past, we remain optimistic on the second half-year that, once again, sees us resolute in leveraging our strategic, scale and leadership advantages, on which the success of Unieuro is based."

Giancarlo Nicosanti Monterastelli, CEO of Unieuro.

Revenues of the first half of 2021/22

In the half-year ended 31 August 2021, Unieuro achieved new turnover records, with revenues of Euro 1,268.2 million, up by Euro 189.2 million (+17.5%) compared to Euro 1,079 million in the same period of the previous fiscal year.

Unieuro S.p.A.	2
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

CORPORATE PRESS RELEASE

The performance has been largely positive, as achieved in a context of gradual post-Covid normalization and in the absence of significant changes in the company's perimeter. So much so that like-for-likerevenue trends6 - that is the comparison of sales with those of the previous year based on a homogeneous perimeter of activity - rose by 14.1%.

This is further confirmed by the comparison with revenues in the first half of the business year 2019/20, the last pre-Covid period, which shows an even more positive change of +19.7%.

Revenues by sales channel

(in millions of Euro		Period ended		Changes
and as a percentage of revenues)	31 August 2021	%	31 August 2020	%		%
Retail	877.6	69.2%	675.8	62.6%	201.8	29.9%
Online	187.8	14.8%	215.4	20.0%	(27.6)	(12.8%)
Indirect	141.3	11.1%	128.1	11.9%	13.2	10.3%
B2B	49.1	3.9%	50.7	4.7%	(1.6)	(3.2%)
Travel	12.5	1.0%	9.0	0.8%	3.5	38.5%
Total revenues	1,268.2	100.0%	1,079.0	100.0%	189.2	17.5%

The Retail channel (69.2% of total revenues) - which as at 31 August 2021 consisted of 265 direct stores, including the Unieuro by Iper shops-in-shop - reported 877.6 million Euros of sales, which is a robust growth (+29.9%) compared to the 675.8 million Euros of the same period in 2020/21. Revenue trends have been positively affected by the gradual easing of restrictions on the accessibility of the direct network by customers, whereas the first half of 2020/21 had been heavily impacted by the pandemic. In addition to that, the passage to the direct management of 18 Unieuro by Iper shop-in-shops, previous affiliates that were internalized starting from the second half of the previous year, as well as the new openings and refurbishments carried out on the direct network over the period should be considered. Thanks to these effects, the channel performance was also positive compared to the first half of the last pre-Covid year (+16.1%).

The Online channel (14.8% of total revenues) reported a 12.8% decline in revenues, with Euro 187.8 million compared to Euro 215.4 million reported in the same period of the previous year, during which the pandemic had led customers to favour e-commerce at the expense of physical shops. Compared to the first half of the last pre-Covid financial year, the revenues of this channel increased by 67.3% thanks to both mainstream and digital marketing activities conducted on the Online channel, as well as to the new consumption habits triggered by the pandemic, which became a structural feature.

The indirect channel (11.1% of total revenues) - which includes the turnover from the network of affiliate stores, totalling 258 stores as at 31 August 2021 - reported 141.3 million

Unieuro S.p.A.	3
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

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Euros of sales, which is 10.3% higher than the 128.1 million Euros of the same period of the previous fiscal year. The performance was supported by the gradual easing of restrictions, the distinctive features of the affiliated stores - medium to small in size and focused on proximity services -, as well as on the positive contribution of the new openings of the period, which partially offset the transition to the Retail channel of previously affiliated Unieuro by Iper shop-in-shops, which took place in the second half of 2020/21. The same phenomena also allowed to grow compared to the first half of the last pre-Covid year (+18.7%).

The B2B channel (3.9% 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 a turnover of 49.1 million Euros, which is 3.2% less than the

50.7 million Euros of the same period in the previous financial year. The unpredictability of revenues from this channel is confirmed, as it is characterized by an opportunistic approach and affected by multiple exogenous factors, which also make the comparison with the first half of the last pre-Covid period (-8.9%) not very significant.

Lastly, the Travel channel (1% of total revenues) - consisting of 11 direct stores located in some of the busiest hubs such as airports, train stations and underground stations - reported a 38.5% recovery compared to the same period of the previous fiscal year and 12.5 million Euros of sales. This performance is benefiting from the gradual resumption of traffic in train stations and airports, which had been totally or partially closed during the pandemic peak. While being gradually normalized, the performance remains down by 32.6% compared to the first half of the last pre-Covid year.

Revenues by product category7

(in millions of Euro and as a		Period ended		Changes
percentage of revenues)	31 August 2021	%	31 August 2020	%		%
Grey	598.0	47.2%	532.9	49.4%	65.1	12.2%
White	346.0	27.3%	307.3	28.5%	38.6	12.6%
Brown	202.8	16.0%	141.9	13.1%	60.9	42.9%
Other products	60.5	4.8%	49.7	4.6%	10.9	22.0%
Services	60.9	4.8%	47.3	4.4%	13.6	28.9%
Total revenues	1,268.2	100.0%	1,079.0	100.0%	189.2	17.5%

The Grey category (47.2% of total revenues) - i.e. telephones, tablets, information technology, telephone accessories, cameras, as well as any wearable technology - generated a turnover of 598 million Euros, which is 12.2% higher than the 532.9 million Euros of the same period in the previous fiscal year. Sales in the semester were driven primarily by telephony, wearables and tablets, product segments that continue to enjoy

Unieuro S.p.A.	4
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro

CORPORATE PRESS RELEASE

positive purchasing trends linked to smart working, e-learning, and communication. Conversely, laptops remained weak. These phenomena also allowed growth compared to the first half of the last pre-Covid year (+19%).

The White category (27.3% of total revenues) - i.e. major domestic appliances (MDA), such as washing machines, refrigerators or freezers and cookers, small domestic appliances (SDA), such as vacuum cleaners, automatic multi-cookers, coffee machines as well as air conditioning units - generated a turnover of 346 million Euros, growing 12.6% from the 307.3 million Euros of the same period of the previous fiscal year. This category grew during the period thanks to the positive results of home care products, specifically in the major domestic appliance segment, which benefited from the success of the promotion "Passione Casa" that had not been proposed in the same period of 2020. The vacuum cleaner and coffee machine segments also gave good results.

The Brown category (16% of total revenues) - consisting of TVs and TV accessories, audio and sound equipment, Smart TV devices, car accessories and storage systems - reported a strong growth in revenues (+42.9% to 202.8 million Euros, compared to the 141.9 million Euros of the same period of the previous fiscal year). This excellent performance is due to the sales of TV sets, which benefited initially from the restart of sporting events, previously blocked due to the outbreak, and from the end of August from the introduction of the TV Bonus offered by the Government to help consumers in view of the television frequencies switch-off. The switch-off latter, officially started on October 15, will continue to support Brown revenues until 2022.

The Other Products category (4.8% of total revenues) - which includes both entertainment products and other products that fall outside of consumer electrics, such as hoverboards and bicycles - reported revenues of 60.5 million Euros, up 22% from the same period in the previous fiscal year and 36.8% from the first semester of the pre-Covid fiscal year. The increased turnover, driven by electrical mobility products, negatively impacted in 2020 by the restrictions imposed for the health emergency, are also linked to social distancing rules, which favour the use of eco-friendly transportation options. The entertainment segment, which includes consoles and video games, is also growing.

The Services category (4.8% of total revenues) reported revenues of Euro 60.9 million, levels that are higher than both the corresponding period of the previous year (+28.9%) and the pre-Covid period (+26.3%). The positive trend benefited from Unieuro's continuous focus on the provision of services to its customers, particularly as regards extended warranty, delivery and transportation.

Operating profitability

Unieuro S.p.A.	5
Registered office and headquarters: Palazzo Hercolani		unieurospa.com		unieuro.it
via Piero Maroncelli, 10 - 47121 Forlì (FC)		linkedin.com/company/unieuro