Unieuro S.p.A.: Shart growth in results and cash flow in the first nine months of 2020/21 despite the Covid-19 emergency

Corporate Press Release

UNIEURO S.P.A.: SHARP GROWTH IN RESULTS AND CASH FLOW IN THE FIRST NINE MONTHS OF 2020/21 DESPITE THE COVID-19 EMERGENCY

• Revenues up 7.4% to €1,889.8 million in the first nine months of fiscal year
  2020/21, driven by positive performance across all product categories
• Strongly improved financial results, including non-recurring effects of actions taken to contain the impact of the pandemic1:

1. EBIT Adjusted2 of €63.6 million, +97.7% compared to €32.2 million in the first nine months of 2019/20

1. Net income Adjusted3 more than doubled to €49.6 million from €19.3 million in the same period last year

• 1. Net cash4 at €152.4 million compared to €29.6 million at the beginning of the year
• Revenues in December also positive and in line with the third quarter, despite continuing restrictions on commercial activities and personal mobility

Forlì, 13 January 2021 - 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 30 November 20205.

The growth in sales volumes since May, the boom in e-commerce and the effectiveness of the actions taken by management to deal with the Covid-19 emergency1 enabled the Company to more than offset the effects of the restrictive measures adopted by the authorities in the first and third quarters.

The first nine months of the year therefore closed with a new revenue record, up more than 7% to €1.89 billion on a purely organic basis and thanks to the positive contribution of all product categories, particularly Grey (telephony and IT), as well as the "Change Black Friday" promotional campaign, the success of which boosted sales in November.

Even during the peak season, the company's business was able to take advantage of consumers' continued interest in the products marketed by Unieuro, particularly those which enable people to work and study remotely, communicate with each other, and enjoy well- being in the home. The multiplicity of sales channels, together with the omnichannel services launched over the summer with the aim of making the in-store purchasing process safer and faster, have also allowed Unieuro to mitigate the impact of lockdowns.

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.

Profitability in turn settled at record levels, with EBIT Adjusted2 almost doubling to €63.6 million and Net income Adjusted3 increasing 157% to €49.6 million from €19.3 million in the first nine months of 2019/20, thanks in part to the non-recurring benefits of the actions taken to address the epidemic1.

Net cash was up sharply, settling at €152.4 million at the end of November compared to €29.6 million at the end of February, the result of Adjusted Free Cash Flow6 of €125.6 million (€57.3 million had been generated in the first nine months of 2019/20).

"An excellent third quarter, helped by robust consumer trends that also benefited the month of December, brings us closer to the end of a financial year that is as complex and volatile as it is positive.

Despite the closure of about half of our direct store network holidays and pre- holidays, we have been able to take advantage of the distinctive potential of our dual presence on the web and of an effective and expanding network of affiliates, making the right decisions with the right timing.

We are proud of all this and we aim to take further advantage of it from a competitive and strategic point of view also in the immediate future".

Giancarlo Nicosanti Monterastelli, CEO of Unieuro.

Revenues of first nine months 2020/21

In the period from March to November 2020, Unieuro accounted Revenues of €1,889.8 million, an increase of 7.4% compared to €1,759.5 million in the same period of the previous year, despite the pervasive impact of the Covid-19 pandemic on the Italian economy and on the Company's business.

Following a first quarter featuring a significant decline (revenues -13.4%) due to the sudden spread of the emergency and the first lockdown, the second quarter (+15.2%) and third quarter (+15.8%) saw a robust recovery, helped by favourable consumer trends triggered by the pandemic and the effectiveness of Unieuro's omnichannel strategy.

The good performance in November, which follows the equally positive trend in September and October, is linked in particular to the success of the promotional campaign called "Change Black Friday", the Black Friday of "life-changing" technology, which started on 3 November and ended on 3 December, thus marking another record duration in Unieuro's history.

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.

In the absence of significant changes to the company's perimeter, performance in the first 9 months of the year was entirely organic. The evolution of the like-for-likerevenues7 - i.e. the comparison of sales with those in the same period last year based on the same scope of operations - amounts in fact to +7.9%. Excluding from the scope of analysis sales outlets adjacent to newly opened stores, like-for-like sales recorded an even stronger growth of +10%.

Revenues by sales channel

(in millions of Euro and as a		Period ended			Changes
percentage of revenues)	30 November	%	30 November	%		%
2020		2019
Retail	1,194.7	63.2%		1,231.2	70.0%	(36.6)	(3.0%)
Online	367.4	19.4%		198.4	11.3%	169.0	85.2%
Indirect	220.2	11.7%		200.3	11.4%	19.9	10.0%
B2B	91.1	4.8%		100.3	5.7%	(9.2)	(9.1%)
Travel	16.4	0.9%		29.2	1.7%	(12.9)	(44.0%)
Total revenues	1,889.8	100.0%		1,759.5	100.0%	130.4	7.4%

The Retail channel (63.2% of total revenues) - which at 30 November 2020 comprised 262 direct shops, including the recently internalised Unieuro by Iper shop-in-shops - reported sales of €1,194.7 million, down 3% compared with the €1,231.2 million recorded in the corresponding period of 2019/20. In the third quarter of the current financial year, sales grew significantly (+9.1%), also thanks to the good performance of the "Change Black Friday" promotional campaign, despite a context made complex once again by the Covid-19 epidemic, which impacted the direct network accessibility to customers. The success of the campaign, together with the easing of restrictions in the May-August period, helped to partially offset the sharp decline recorded during the first wave of the pandemic.

The Online channel (19.4% of total revenues) posted a growth of 85.2%, pushing revenues to €367.4 million compared to €198.4 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 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 by the channel.

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.

The Indirect channel (11.7% 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 250 stores at 30 November 2020

• reported revenues of €220.2 million, up 10% compared to 200.3 million in the same period of the previous year. In general, the distinctive features of the affiliated shops - small- medium sized and focused on proximity service - have resulted in a significant resilience of the business, only marginally impacted by the restrictions, as well as the full recovery - already starting from the second quarter - of the revenues missed during the first wave of the pandemic. In addition, the partnership with Partenope Group was launched in November, and this has led to the arrival of the Unieuro brand in the city of Naples and has partially offset the transition to the Retail channel of the last 16 Unieuro by Iper shop-in- shops still managed under affiliation, completed in September.

The Business-to-Businesschannel (4.8% 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 €91.1 million, down 9.1% compared to 100.3 million euros in the same period of the previous year. This confirms the uncertainty of revenues from this channel, which features an opportunistic approach and is influenced by a multiplicity of exogenous factors.

Lastly, the Travel channel (0.9% 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 €16.4 million (-44%). 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.