Aeffe S p A : Annual report at 31 December 2022

CONSOLIDATEDANDSTATUTORY FINANCIALSTATEMENTS

AT31 DECEMBER2022

Disclaimer

The consolidated and statutory financial statements at 31 December 2022 have been translated into English solely for the convenience of the International reader. In the event of conflict or inconsistency between the terms used in the Italian Version of the report and the English version, the Italian version shall prevail, as the Italian version constitutes the official document.

CHAIRMAN'S LETTER

For the Aeffe Group, 2022 represented a year of growth (+8.4% vs 2021) and a strong restart compared to the years of health emergency linked to the Covid-19 pandemic. All the Group's brands (Moschino, Alberta Ferretti, Philosophy di Lorenzo Serafini and Pollini) reported increasing revenues, exceeding pre-pandemic levels (2019), with satisfactory performances in the main geographical areas.

From a medium-long term industrial point of view, 2022 was characterized by a plan of significant strategic investments, implemented starting from the end of 2021 with the acquisition of the minority stake in the Moschino brand (brand now 100% owned). followed by the finalization of the direct distribution project in China.

In terms of operating margins, consolidated EBITDA was positive for 36 million euros (with an incidence of 10.1% on turnover), recording an increase of 0.6% compared to the 2021 EBITDA of 35 million (with a 10.9% incidence on turnover), despite the difficulties on the Chinese market related to the local health emergency which had a negative impact on the second half both on sales volumes and on expected margins, contributing to an increase in costs both variables and fixed.

The Group remains confident that the choices made will be reflected in the medium term in a progression of both revenues and profitability.

With attention to the evolution of the market context and the related contingencies, the Group is therefore committed to strengthening the development plans of the proprietary brands both at a commercial level and in terms of optimizing the corporate and organizational structure.

The OECD noted that, despite the impact of the war in Ukraine, the inflationary shock and the slowdown in China led to a slowdown in global growth of 3.2%, well below expectations at the beginning of the year, in In the first months of 2023, more positive signs are starting to appear, with business and consumer confidence progressing and China making a full recovery.

Global growth is expected to remain below its trend level in 2023 and 2024, at 2.6% and 2.9% respectively, while the tightening of macroeconomic policies will continue to produce its effects. However, a progressive improvement is expected in 2023 and 2024 coinciding with the mitigation of the impact of prices.

The improvement in the macroeconomic context is still fragile, with more balanced risks, albeit oriented to the downside. Uncertainty about the progress of the war in Ukraine and its wider consequences is a key concern and the impact of monetary policy changes is difficult to gauge, with a potential exacerbation of financial vulnerability.

Looking to the future, 2023 will therefore be another important year for the Group and for the various Brands with numerous activities that will see us engaged both in terms of reorganization and implementation of the extraordinary projects started in 2022, and in terms of style with the intention of be ever closer to customers and continue the growth path.

The Chairman of the Board of Directors

Massimo Ferretti

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INDEX

CORPORATE BOARDS OF THE PARENT COMPANY	4
ORGANISATION CHART	5
BRANDS PORTFOLIO	6
MAIN FLAGSHIPSTORE LOCATIONS UNDER DIRECT MANAGEMENT	8
MAIN ECONOMIC-FINANCIAL DATA	9
CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2022	10
REPORT ON OPERATIONS	11
FINANCIAL STATEMENTS	27
REPORT OF THE AUDITING COMPANY	31
EXPLANATORY NOTES	37
ATTACHMENTS TO THE EXPLANATORY NOTES	79
STATUTORY FINANCIAL STATEMENTS AT 31 DECEMBER 2022	85
REPORT ON OPERATIONS	86
FINANCIAL STATEMENTS	96
REPORT OF THE BOARD OF STATUTORY AUDITORS	100
REPORT OF THE AUDITING COMPANY	107
EXPLANATORY NOTES	113
ATTACHMENTS TO THE EXPLANATORY NOTES	152

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Corporate boards of the Parent Company

Board of Directors

Board of Statutory

Board of Risk and Sustainability Board of Compensation Control CommitteeCommittee

Chairman

Massimo Ferretti - Member of Executive Committee

Deputy Chairman

Alberta Ferretti

Chief Executive Officer

Simone Badioli - Member of Executive Committee

Directors

Giancarlo Galeone - Member of Executive Committee Roberto Lugano

Bettina Campedelli Francesca pace Marco Francesco Mazzù Daniela Saitta

President

Stefano Morri

Statutory Auditors

Fernando Ciotti

Carla Trotti

Alternate Auditors

Nevio Dalla Valle

Daniela Elvira Bruno

President

Daniela Saitta

Members

Roberto Lugano

Marco Francesco Mazzù

President

Bettina Campedelli

Members

Roberto Lugano

Daniela Saitta

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Organisation chart

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