2022 concludes four years of effective turnaround laying solid foundations for the Group’s future growth

• Net sales at €1,076.7 M, +11.1%
• Gross margin of 55.5% vs 51.7% in 2021
• Adj.3 EBITDA at €101.2 M, +24.2% and margin of 9.4%
• Adj.3 Group Net result at €58.3 M

Group’s economic and financial targets for 2027:
• Net sales at around €1.3bn
• Adj. EBITDA margin of 12%-13%
• Positive FCF generation throughout the Plan period

The Board of Directors of Safilo Group S.p.A. has today approved the Company’s consolidated financial statements for the year ended December 31, 20221 and examined the separate financial statements for the year ended December 31, 2021, which will be submitted for approval by the shareholders at the Annual General Meeting to be held in a single call on April 27, 2023. The Board of Directors has decided not to propose the payment of a dividend to the next Annual General Meeting.

Today, the Board of Directors also approved the Group’s medium-term economic and financial targets. Angelo Trocchia, Safilo Chief Executive Officer, commented:

“Starting from 2019, Safilo has embarked on an ambitious strategic turnaround journey to re-establish the Group as a healthy and competitive player in the attractive eyewear sector. We are proud of the effective progress made so far by Safilo, notwithstanding challenging years of global health and economic crises which have required us to face reality with great pragmatism, often making difficult choices.

We look to 2022 as the year in which we completed our first, fundamental turning point, fully overcoming important
portfolio challenges thanks to a particularly strong organic growth, especially of our main home brands, the acquisition
of two American brands in 2020, which have also allowed us to strengthen our digital business and capabilities at a
crucial time in the market, and thanks to the entry of new license partnerships.

The strong top line recovery recorded in the last two years has seen us close 2022 with a business growth of 4.2% at
constant exchange rates compared to 2021 and of 12% compared to 2019. Sales performance was even stronger at the
organic business level – net of the effects of new and exiting brands – equal to a growth of 7.7% versus the year before
and to an impressive almost +22% compared to the pre-pandemic year.

In 2022 our revenues reached 1,076.7 million euros, exceeding the goal of our previous Plan to return the Group to
around one billion sales by 2024, and allowing us to improve margins more rapidly.

Our gross margin significantly increased in 2022, reaching 55.5% of sales from 51.7% in 2021 and 50.8% in 2019. A
very meaningful improvement for us, to which the early completion of the cost of goods sold saving plan gave a great
contribution. Together with the overheads saving program, already concluded in 2021, the Group thus achieved its 45
million euros cost reduction program by 2022, two years ahead of plan.

All this allowed us to reach an adjusted EBITDA of 101.2 million euros, up 24.2% compared to 2021 and around 56%
compared to 2019, recovering a margin on sales of 9.4%, also in this case reaching the target range we had set ourselves
for 2024.

Last year, our operating performance improved despite the high inflationary context – which we managed to counter
through effective pricing strategies and a richer sales mix – and notwithstanding the significant acceleration of
investments to support the growth of our brands, modernization of our business intelligence processes, and digital
transformation projects.

Finally, we closed the year with an adjusted net profit of 58.3 million euros, also thanks to a lighter financial structure,
which benefited from the significant debt reduction following the capital increase that we successfully concluded in
November 2021. Furthermore, in September 2022, we refinanced the Group debt, extending its duration and providing
us with ample financial resources to support our growth in the years to come.

Thinking now ahead, while we maintain a cautious approach to the current year, which began in the wake of concerns
regarding consumption trends in an uncertain and potentially volatile macroeconomic environment, we are, on the other
hand, confident of the Group’s medium-term growth prospects. A new chapter in our story has begun, a new phase of
development that will continue to leverage the multiple drivers underpinning the long-term growth of the eyewear sector,
and build on the main strategic choices we initiated 4 years ago.

Our medium-term ambitions therefore remain focused on our strong brand portfolio to effectively reach a broad audience
of target consumers, powered by the sustained growth of our home brands, to be achieved organically but also via new
acquisitions, and complemented by a diversified set of licensed brands.

It will be essential to continue to maintain a balanced business, aiming for a home brands portfolio that by 2027 accounts
for more than 50% of our revenues and that decisively shapes the development of our geographical and distribution
channel mix. For this reason, in the coming years, we expect more significant growth in North America and emerging
markets, just as we expect our business to grow more in the sports channel dedicated to outdoor products, and in all the
online channels that we have successfully developed in recent years, from B2C to revenue through internet pure players,
to our innovative B2B platforms which will continue to put our Customer First.

Our portfolio strategies will keep leveraging two main enablers of growth. On the one hand, the 360° digital
transformation, which we accelerated already last year to equip the company with the latest technologies in terms of
business intelligence and data analytics, and which will see us further investing in particular in the coming two years.
On the other hand, our growing commitment to developing a sustainable business.

Also on this front, 2022 represented a year of important results, thanks to a reduction of around 46% in scope 1 and 2
CO2 emissions compared to 2021 and of around 57% compared to 2019, and new investments in photovoltaics and
renewable energy. Starting from these achievements, today we want to set our medium-long term sustainability goals and


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