Monnalisa S p A : H1 2022 Financial Results

MONNALISA®

MONNALISA: STRONG GROWTH IN H1 OF 19% FOR DIRECT TO

CONSUMER CHANNELS OVER PRE-PANDEMIC PERIOD

• Consolidated revenues of Euro 22.6 million (+12% at current exchange rates and +11% at like-for-like exchange rates on H1 2021)
• Retail channel growth of 34% on H1 2021 (33% at like-for-like exchange rates), up 10% on H1 2019
• The direct-to-consumer channels, which include direct physical and online stores, surpass pre-covid revenues by 19%, coming to account for 42% of total group revenues, in line with the strategic development plan
• Reported EBITDA of Euro 2.07 million (Euro 2.366 at June 30, 2021) and Adjusted EBITDA of Euro 2.26 million
• Significant improvement in adjusted net financial debt1 to 8.46 million (10.2 million at June 30, 2021), thanks to cash generation from current operations, largely used to reduce medium and long-term debt
• The group continues on its strategic journey of sustainable growth through the direct channel and the expansion of the range, including through collabs and partnership with primary luxury brands

Arezzo (AR), September 30, 2022

The Board of Directors of Monnalisa S.p.A., the operative holding company of the Monnalisa Group, the high-end childrenswear sector leader and listed on the Euronext Growth Milan market organised and managed by Borsa Italiana, has approved the 2022 Half-Year Financial Report, drawn up as per the Euronext Growth Milan Issuers' Regulation.

Christian Simoni, CEO of Monnalisa, stated: "The 2022 half-yearreport, amid a complex and uncertain general economic and geopolitical environment, reflects the soundness of our strategy, particularly with regard to investments to strengthen our direct relationship with the consumer. The retail channel grew by more than a third on the same period of the previous year - far exceeding pre-pandemiclevels - despite continued lock-downsin China, where more than 20% of our network is concentrated, and difficulties in countries where retail is most impacted by this situation - mainly Hong Kong and Taiwan. We have begun a number of innovative projects focused on sustainability, product innovation and international expansion, some of which have

1 Calculated excluding the Euro 19.4 million for lease liabilities, i.e., net of the impact of the IFRS 16 accounting standard (Net Financial Indebtness including the effects of IFRS 16 amounts to Euro 27.9 million at June 30, 2022 and to Euro 29,4 at June 30, 2021.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy VAT No. 01163300518

www.monnalisa.com - e-mail:[email protected] - ph. +39 0575 9850.1 - fax +39 0575 9850.20

MONNALISA®

already been launched, such as the carbon neutral sneaker developed in collaboration with ACBC and the stroller with Leclerc, while others are in the pipeline for the coming months. The transition to international accounting standards is another step in this direction, which underscores the determination and quality of the company's management team and all our employees."

The Group makes the transition to international accounting standards from the Consolidated Half-Year Financial Report at June 30, 20222.

Consolidated Revenues Overview

Total consolidated revenues of Euro 22.6 million are reported for H1 2022, up 12% at current exchange rates (+11% at like-for-like exchange rates) on Euro 20.2 million for H1 2021.

Revenues by Distribution Channel

Revenues by distribution channel saw major growth on the retail channels, +34% and +33% respectively at current exchange rates and like-for-like exchange rates. This performance reflects the Group's growth strategy focused on retail channel development, whose share of consolidated revenues rose from 29% in H1 2021 to 35%, through the recovery of volumes after the difficulties resulting from the closures and lock-down of the COVID period, the effects of which continued to significantly impact results in some countries, particularly China, in the first half of 2022.

Channel sales outperformed H1 2019 by 10%.

H1 at current exchange rates

The direct online channel remained at essentially the same level as the first half of last year, in which it grew 140% over H1 2020. The figure is strong however considering the disruption of online sales in the countries affected by the Russian-Ukrainian conflict, which had a significant share of the business in the channel. The Group is continuing to implement a geo-localised direct online project in Russia, which is expected to be operational as early as the coming months.

2 The Group has prepared the Consolidated Half-Year Financial Report at June 30, 2022 based on International Financial Reporting Standards in the version adopted by the European Union (IFRS). The figures in this Press Release are all on an IFRS basis, and the comparative figures have been re-presented to make them adequately comparable. The last consolidated financial statements prepared in accordance with Italian GAAP (OIC) refer to the year ended December 31, 2021.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy VAT No. 01163300518

www.monnalisa.com - e-mail:[email protected] - ph. +39 0575 9850.1 - fax +39 0575 9850.20

MONNALISA®

The online channel share, both direct and indirect, of total sales stands at 19%.

Overall, the Direct to Consumer (D2C3) channels account for 42% of the Company's total sales revenue, in line with the approved strategy.

Revenues by region

Revenues by region indicate growth significant in Italy, particularly on the retail channel, and in Europe, respectively up 36% and 17% at current exchange rates. The small decrease in the Rest of the World relates to the previously-stated difficulties caused by the pandemic, particularly in China and in Asia.

H1 at current exchange rates

Group Consolidated Income Statement Overview

Monnalisa's Reported EBITDA for H1 2022 was approx. Euro 2.07 million, a 9% revenue margin. This result mainly stemmed from growth on the retail and online channels, which feature high margins.

This figure was impacted by a number of non-recurring costs in H1 2022. Adjusted EBITDA for H1 2022 was Euro 2.26 million. The adjustments on reported EBITDA concern the extraordinary costs related to non-recurring events in H1 2022 and the result of a number of stores opened in the last 12 months and therefore not yet at break-even.

The consolidated net loss was Euro 1.5 million, compared to Euro 1.6 million in H1 2021.

Group consolidated equity and financial overview

Net working capital at the end of the quarter decreased 10.8% to Euro 15.5 million, from Euro 17.3 million at June 30, 2021. Inventories in particular decreased 5% in the same period.

Operating activities generated cash of Euro 3.4 million.

The Group adjusted net financial debt at June 30, 2022, not including financial payables for leases4, amounted to Euro 8.46 million, compared to Euro 10.2 million at June 30,

3 The Direct to Consumer channel includes Retail and Direct B2C.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy VAT No. 01163300518

www.monnalisa.com - e-mail:[email protected] - ph. +39 0575 9850.1 - fax +39 0575 9850.20

MONNALISA®

2021. The decrease in the net financial debt was due to the repayment of medium and long-term loans, partially offset by the use of short-term lines and supported by the operating performance.

Group Shareholders' Equity at June 30, 2022 was Euro 26.9 million.

The following Group financial statements are annexed to this press release:

Annex 1. - Consolidated Income Statement

Annex 2. - Consolidated Comprehensive Income Statement Annex 3. - Consolidated Balance Sheet

Annex 4. - Statement of changes in consolidated shareholders' equity Annex 5. - Consolidated Cash Flow Statement

The consolidated half-year report at June 30, 2022 shall be made available to the public according to the terms and means established by the Euronext Growth Milan Issuers' Regulation, and also on the website of Monnalisa S.p.A. https://www.monnalisa.com/in the "Investor Relations" section.

***

Monnalisa S.p.A. (Ticker MNL), listed on the Euronext Growth Milan market since July 12, 2018 and engaged in the high-end childrenswear segment for fifty years, was founded in Arezzo in 1968. It distributes in over 50 countries, both through direct flagship stores and at the world's best-known Department Stores and over 500 multibrand sales points. Focusing on high-quality and made in Italy style, its research and development investment is matched by a commitment to sustainability. The company complies with the SA8000 regulation and environmental certification ISO 14001.

4 The indicated amount does not include current and non-current financial payables for leases. The figure therefore does not take into account the amounts recognised on the basis of IFRS 16.

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy VAT No. 01163300518

www.monnalisa.com - e-mail:[email protected] - ph. +39 0575 9850.1 - fax +39 0575 9850.20

MONNALISA®

Annex 1. - Consolidated Income Statement

Annex 2. - Consolidated Comprehensive Income Statement Annex 3. - Consolidated Balance Sheet

Annex 4. - Statement of changes in consolidated shareholders' equity Annex 5. - Consolidated Cash Flow Statement

MONNALISA S.p.A.

Via Madame Curie, 7 - 52100 Arezzo - Italy VAT No. 01163300518

www.monnalisa.com - e-mail:[email protected] - ph. +39 0575 9850.1 - fax +39 0575 9850.20