10 Monday 05:38 PM The Board of Directors has examined the 2021 preliminary results

Press Release

CASA DI MODA BRUNELLO CUCINELLI: the Board of Directors has examined the 2021 preliminary results

• Net revenues of 712,0€ million, up +30.9% at current exchange rates (+32.4% at constant exchange rates) compared to 2020;
• Beautiful growth reported in all geographical areas: Americas +36.7%, Asia +32.9%, Europe +26.5%, Italy +23.2%;
• Very important growth in both sales channels, with retail up +56.0% and wholesale up +6.3%;
• Compared to 2019, 2021 revenues grew +17.2% at current exchange rates, with the retail channel growing +23.5% and wholesale +9.1%;
• Significant investments as per multi-year plan of approximately €61 million, further increasing from the € 51.6 million invested in 2020, to support modernity and contemporaneity of our "Casa di Moda";
• Characteristic Net Financial Indebtedness1 amounting to approximately €23 million, with a significant improvement over the €93.5 million at 31 December, 2020 and below the €30.1 million at 31 December 2019, driven by cash generation and the very positive working capital management.

Brunello Cucinelli, Executive Chairman and Creative Director of the Casa di Moda commented:

"This year 2021 has been one of the best for our Casa di Moda. We have achieved some important results both in terms of economics and image worldwide, which has led us to call this time: the year of rebalancing.

The Spring Summer 2022 collections and the Fall Winter 2022 pre-collections received great appreciation from both buyers and the international press. Building on these results, we imagine a fine, gracious and balanced growth of around 10% for the current year. There is no doubt that all this allows us to work with healthy focus and dedication, envisaging a bright future for our "Casa", for the territory and the next generations."

1 Characteristic Net Financial Indebtedness and Investments does not reflect the effects of the application of IFRS 16.

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Solomeo, 10 January 2022 - The Board of Directors of Brunello Cucinelli S.p.A. - "Casa di Moda" operating in the luxury goods sector, listed on the Italian Stock Exchange - today examined the Group's preliminary consolidated net sales for the year 2021 and the net financial debt as at 31 December 2021. The complete and final annual data for 2021 will be examined and approved by the Board of Directors at its meeting scheduled for 10 March.

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The 2021 was a year to be considered among the best of our history.

A year in which we seem to have succeeded in achieving decidedly positive results in tandem with the perception of a further strengthening of the image of our Casa di Moda and our brand in terms of taste identity, positioning in absolute luxury, reliability and correctness of behavior towards all our stakeholders, customers, suppliers and shareholders.

A year in which we received two great worldwide awards. The first regarding taste: in London at the Tate Modern Museum, at the beginning of September Brunello Cucinelli was named "Designer of the Year" by the prestigious British men's fashion magazine GQ. The second, Brunello Cucinelli's personal participation as a speaker together with Prince Charles of England at the G20 in Rome on October 31, with a testimony on Humanistic Capitalism and Human Sustainability. It's easy to see that all this has honored us from a human point of view and has undoubtedly had a positive impact on the brand's image and sales.

We feel deeply reassured by the proximity to our brand of so many customers, of the largest wholesale luxury operators as well as of the most precious specialty stores, which bring their vision of contemporary beauty to the world.

At the same time, the acquisition of new customers in the various geographies contributed to the steady sales growth experienced during the year.

Moreover, in these 12 months, our production chain, entirely Italian and with a very high level of craftsmanship (more than 50% of our product is made by "hands"), seems to have shown great operational, financial and planning solidity for the decades to come.

We believe that these results give full credit to the rational positivity that has inspired us, as well as to the determination with which we have acted in these 12 months, guided by the intent not to "reduce" in any way our offer to customers but, on the contrary, to try to offer them what they might want in the different individual moments we have gone through.

Respect for Human Privacy, moments of confrontation on the great themes of life, physical or virtual trunk shows, in-store events as soon as deemed possible and appropriate, moderation and creativity: these were all elements that accompanied us, very different from each other but all equally important.

In this year we believe we have reaffirmed even more strongly the "co-essentiality" of physical and digital, and we have significantly appreciated the great pleasure with which many customers have returned to visit the boutiques in person.

We continue to believe that the physical experience is and will remain the essential center of the luxury market, for the fullness, immediacy and intensity with which brand content can be perceived by the end customer.

At the same time we see further concrete development opportunities for our digital boutiques, both in relation to the geographical dimension, through the extension of our digital offer in areas where we had

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not yet arrived, and in relation to the demographic dimension, aware that we have already registered a large number of new young customers who have become digitally acquainted with our brand.

We think that 2021 is the year in which our interpretation of Humanistic Capitalism and Human Sustainability has become even clearer and appreciated by the sensibility of many people in the world. In our idea of Sustainability, the important environmental dimension coexists with three other fundamental dimensions: the economic, the moral and the cultural.

As far as the environment is concerned, we have always been committed to Living in Harmony with Creation, which has guided us over time to use technology and every possible tool to reduce the externalities generated by our activity which, due to its artisanal nature, is not associated with a particularly high level of emissions.

At the end of the year, we decided to make our commitment measurable by communicating the target of a 60% reduction in greenhouse gas emissions in terms of economic intensity by 2028 and in absolute terms by 70% for scope 1 and 2 emissions and by 22.5% for scope 3.

We have tried to give dignity to our earth, respecting its natural rhythms and enhancing it rather than exploiting it. The factory where we work in Solomeo already existed in the last century, and our focus has been on making it modern and contemporary, rather than building new spaces. We will maintain the same approach in the years to come for the future development of our Casa di Moda, with the next expansions to take place exclusively in the surroundings of the village of Solomeo.

The harmonious relationship that we seek with nature, with other living beings and with the resources of the planet, also has a counterpart in the economic field. We believe, in fact, that there is also a real economic sustainability, by virtue of which we have always tried to combine profit and gift in the best possible way.

For this reason we always try to protect the conditions of the people who work with us, and we would be particularly careful to the places where we work and to the remuneration, concerning both our human resources and the craftsmen of the external laboratories with which we produce our garments.

For our Casa di Moda, the relationship with our esteemed façonisti, great producers and authentic manufacturers, true artisans on whom we know we can always count with unwavering confidence, is a priority and of the utmost importance.

We seek the same amiable relationship with suppliers of raw materials, towards whom we try to behave with absolute correctness, reciprocated by a perfect spirit of collaboration.

There is also the great theme of moral sustainability, to which we have always devoted considerable energy, seeking dignity in work, and in a broader sense the dignity of the human being, so that everyone, going to work, can feel truly treated as a human being.

Moral sustainability for us means working the right hours, as well as staying connected for the right amount of time, and we are convinced that the young and very young are and will be increasingly attentive to the type of production, the treatment of workers, the management of resources and the big issue of fair profit.

Another major theme, which Brunello Cucinelli had the opportunity to discuss at the last G20 summit, is strict compliance with the law, which is linked, for example, to the duty to pay the right taxes in one's own country. In our view, this too is part of the moral sustainability we are referring to.

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Finally, as far as cultural sustainability is concerned, also through the Brunello and Federica Cucinelli Foundation, we have always tried to promote a culture inspired by the principles of humanism. The Theater, the Winery, the Monument to the Human Dignity, are expressions of cultural sustainability, as are the schools of Arts and Crafts, through which we seek the transmission of ancient and precious artisan knowledge for a contemporary craftsmanship.

In the near future Solomeo will be enriched by the construction of its Universal Library, inspired by the great Library of Alexandria conceived by Ptolemy I, which has the ambition to collect a large amount of publications from all over the world, in a small number of disciplines including philosophy, architecture, literature, poetry and crafts.

Through this work promoted by the Brunello and Federica Cucinelli Foundation, we would like to follow up the thought of Imperator Adriano: "Books have shown me the way of life, when I grew up life made me understand the meaning of books".

The Universal Library of Solomeo will be located in the noble eighteenth-century Villa with a large park, close to the Church and the Theater, in the heart of Solomeo, defined by us Hamlet of Cashmere and Harmony.

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Revenues by Geographical Area

Preliminary 2021 Revenues2 of €712.0 million, with beautiful growth of +30.9% compared to 2020 (+32.4% at constant exchange rates) and +17.2% compared to 2019.

	FY 2021	%	FY 2020	%	YoY	FY 2019	Var. %
					Change %
	Eur '000		Eur '000		FY 2021/		FY 2021/
					FY 2020		FY 2019
Europe	219,007	30.8%	173,078	31.8%	+26.5%	176,900	+23.8%
Italy	84,193	11.8%	68,323	12.6%	+23.2%	89,720	-6.2%
Americas	238,232	33.4%	174,242	32.0%	+36.7%	205,768	+15.8%
Asia	170,590	24.0%	128,370	23.6%	+32.9%	135,373	+26.0%
Revenues	712,022	100.0%	544,013	100.0%	+30.9%	607,761	+17.2%
YoY Change at constant exchange rates			+32.4%

In the European market,we reported excellent growth, with sales up +26.5% over 2020 and +23.8% over 2019, accounting for 30.8% of sales.

2 As from 2021, the representation of sales by reference market is carried out on the basis of the geographical area (Europe, Americas, Asia) of the various countries in which the Group operates, maintaining specific evidence for Italy. This method of representation makes it possible to give greater evidence of the weight that each geographical area has for the Group; in this regard, sales in countries that were previously included in the "Rest of the World" category have been allocated to the specific geographical areas of reference.

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The structural domestic connotation of our business, the loyalty of end customers, as well as the presence of new customers, contribute to the achievement of these results, which show an excellent balance between retail and multibrand channel.

The great European luxury capitals, such as Paris, Milan, London, have shown significant responsiveness in the recovery of sales and especially in the desire of customers to return to "live" the physical spaces of the boutiques, which has led us to organize several events and meeting moments inside our boutiques.

We were particularly excited about the "official" inauguration of the new boutiques in London on New Bond Street and in Paris on Avenue Montaigne, which with their charm and warmth represent an excellent example of our idea of hospitality.

In addition to the excellent results in Russia, which during these months has made an important contribution to our growth in Europe, in the second half of the year we appreciated the contribution of central and northern Europe, of the second tier cities, and the progressive recovery in the Mediterranean area, also thanks to the increasing of regional tourism flows and the first arrivals of international clients, particularly from North America.

In Italythere is an important improvement in the sales trend in the last part of the year; in 2021 growth is +23.2% compared to 2020, with a marginal drop of -6.2% compared to 2019; very significant growth in the fourth quarter compared to 2020, with a performance close to parity in the comparison with 2019.

The recovery of local demand was solid, balancing the prolonged absence of international tourism; the contribution of the results in provincial cities was very significant, thanks also to the presence of dedicated spaces in the most important Specialty Stores, which confirm the great value both for the achievement of the year's results and for the contribution to the taste and appeal of the brand.

We believe that these multi-brand clients have always represented an absolute reference in the Ready to Wear sector, for their ability to innovate and constantly search for the most modern, chic and contemporary proposals, with development plans and investments that allow us to plan together for the medium-long term.

The American marketis growing very significantly, with a beautiful increase in sales of +36.7% compared to 2020 and 15.8% compared to 2019, reaching a weight on total sales of 33.4%, thanks in part to strong demand in the absolute luxury segment and a very positive performance in the last quarter of the year.

The beautiful growths also find their basis in the growing desire to "dress well", in men as well as women, after periods spent away from sociality and physical encounters.

The reported results are aided by a balanced and synergistic presence in major cities, provincial and resort locations, through single-brand boutiques, Specialty Stores and Luxury Department Stores.

Domestic tourism made a positive contribution, with resorts in the USA becoming a reference point for exclusive stays, as did digital sales, which complemented sales in the physical channel.

The Asian marketreports a wonderful growth of 32.9% over 2020 and +26.0% over 2019, with a relative weight of 24.0%; the last quarter of the year shows a significant acceleration of sales, thanks in particular to the performance of Mainland China.

We believe these results are brilliant, both for the absolute value of the performance and for the way in which we have achieved them. In the pursuit of balanced, healthy and quiet growth, we believe that

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