Half-year report 2024

Dear Shareholders,

The year to date has seen us systematically pursuing the strategic realignment adopted by the Group Board of Directors in 2023, with its focus on operational excellence and the streamlined, goal-oriented processes this entails. Optimisation of our Group structure and personnel is progressing as planned. The recent disposal of LAFUMA ­MOBILIER is consistent with our plan to focus the CALIDA GROUP on the core segments of underwear and lingerie. Our core brands CALIDA, AUBADE and COSABELLA are well positioned internationally and offer attractive potential for growth.

Optimisation of the CALIDA GROUP's organisational structure

The discontinuation of the ONMYSKIN online platform was completed in the first quarter, and further progress was made on integrating the former subsidiary Reich Online into the CALIDA organisation. This will further strengthen the Group's thriving e-commerce business.

In addition, personnel changes helped optimise the CALIDA GROUP's operational structure. With effect from 1 July 2024, Irem Aydin took over as the new General Manager for the CALIDA brand. Prior to this, she was Director Operations and a member of Executive Management of CALIDA AG. In her new role, Irem Aydin will be working to further grow the strong market position of the traditional brand. At COSABELLA meanwhile, Stéphanie Sauvage moved into the General Manager role for the brand, having previously been Head of Collection & R&D for AUBADE. Under her leadership, COSABELLA will unlock its current potential and develop into a profitable, attractive and competitive lingerie brand in the US market.

Focus on textile business

The sale of LAFUMA MOBILIER to Peugeot Frères Industrie as communicated on 12 July 2024 allows the CALIDA GROUP to focus on its core business of underwear and lingerie. Completion of the transaction is expected within the current quarter. In the first half of 2024, LAFUMA MOBILIER generated sales of EUR 30.8 million, a currency-adjusted decrease of 18.2%, year-on-year. Due to the forthcoming disposal of LAFUMA MOBILIER, the brand is classified as a discontinued operation in the half-year results for 2024.

Subdued consumer sentiment weighs on sales performance - CALIDA and AUBADE report very positive results

CALIDA GROUP operational business in H1 2024 was defined by extremely weak consumer demand. The above-average demand seen during the coronavirus pandemic and the market saturation following in its wake left manufacturers and retailers with large inventories that need to be reduced. This has led to significant downward pressure on prices in CALIDA GROUP markets, at the same time as production costs have been on the rise. In addition, inflation has eroded consumer purchasing power, sharply reducing in-store sales.

Both CALIDA and AUBADE performed very strongly in a challenging market environment. CALIDA's contribution to Group sales was CHF 69.9 million (-3.6%) and AUBADE's was EUR 33.6 million (-3.9%). In other words, these brands did very well compared to the same period a year earlier (H1 2023). We are confident that CALIDA will be able to maintain its strong market position in H2, this being the significantly stronger half for the brand. With the French market particularly hard hit by consumer reticence,

Despite a challenging economic environment, CALIDA again strengthened its position in the national and international lingerie market in the first half of 2024 with outstanding seasonal highlights and stayed on its growth path in keeping with the brand strategy.

Buoyed by above-averagee-commerce performance and investments in the successful own-store network,­ the first half-year saw strong growth in the direct-­to-consumer business. There was also successful internationalisation with the expansion of space management areas in France. The market situation in regular wholesale business was somewhat harder due to ongoing high stock levels and insolvencies.

There was another customer survey in the spring related to last year's market segmentation, which has enabled a more targeted approach to customer needs resulting in a consistent improvement in the service and brand experience. The well-being, satisfaction and development of all staff are also a key success factor. In addition to a new employee survey on the current level of morale, leadership training is also being enhanced again in 2024.

CALIDA presented an AI-generated campaign for the first time in May as part of a creative trial balloon, thus consolidating the ongoing digitalisation process. In addition, a lean and modern point-of-sale solution was launched in some CALIDA stores for the first time to position the company for the future and prepare for pending market requirements.

The new "Yellow Green Day" dedicated to CALIDA's sustainability agenda promotes in-house cooperation and training with regard to climate change and sustainable behaviour - another component in the consistent pursuit of a sustainable product portfolio and sustainable production process optimised on an ongoing basis.

In the first half of 2024, the unstable environment continued to dominate business. In this context, the wholesale channel suffered particularly from destocking and low traffic. Nevertheless, AUBADE continued its international expansion - one of the key pillars in the brand strategy with the opening of new multi-brand points of sale, especially in key countries such as the United States and Germany. In the latter, the brand was honoured by Intima with the "Best Brand" award in the Luxury category for the third consecutive year. AUBADE also invested in new corners at El Corte Inglés in Spain and carried out refits at Inno in Belgium. Despite the challenging environment, the e-commerce channel continued to perform very well during the period under review, with double-digit growth confirming the strategy of leveraging on digitalization and internationalization.

In terms of products, AUBADE launched an athleisure­ collection in collaboration with the Luz brand in spring/summer 2024. This line made with recycled materials, combines comfort and technicality with modernity and seduction. The brand successfully expanded its line of ready-to-wear bodysuits. Moreover, AUBADE strengthened its basics with a new lace line certified "Global Recycled Standard (GRS)" with the goal of certifying 50% of its lines by 2026.

In addition, AUBADE worked to strengthen its presence on social networks. The brand invested in a highly successful 360° marketing campaign on Valentine's Day, with influencers, podiums in department stores, and in-store windows, enabling it to increase its desirability, improve brand awareness, recruit, rejuvenate its consumer base and strengthen its commitment to consumers.