Unieuro S p A : Annual Financial Report to 28 February 2023

Annual Financial Report

As at 29 February 2024

Annual Financial Report

As at 29 February 2024

CONTENTS

Annual Financial Report

as at 29 February 2024

UNIEURO AT A GLANCE
Letter to Shareholders from the Chairperson
of the Board of Directors	6
CEO's letter to the Shareholders	7
Highlights	8
Purpose, Vision, Mission, Belief	10
Brand Values	11
Unieuro Brand	12
The strategic pillars	13
Covercare	14
A growing commitment to Sustainability	16
History	18
Results	20
Corporate Bodies	22
Unieuro on the stock exchange	24

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Annual Financial Report as at 29 February 2024

DIRECTORS' REPORT	27
CONSOLIDATED FINANCIAL STATEMENTS	89
CERTIFICATION OF THE CONSOLIDATED FINANCIAL STATEMENTS	200
INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS	201
SEPARATE FINANCIAL STATEMENTS	211
CERTIFICATION OF THE SEPARATE FINANCIAL STATEMENTS	313
INDEPENDENT AUDITORS' REPORT ON THE SEPARATE FINANCIAL STATEMENTS	314
BOARD OF STATUTORY AUDITORS' REPORT TO THE SHAREHOLDERS' MEETING
OF UNIEURO S.P.A.	321

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In FY 2023/24 we finalised the acquisition of Covercare Group, the most strategically and financially significant operation in our history, which marks the resumption of Unieuro's acquisition-led growth and strengthening.

This is a transformative transaction for us and perfectly supports our goal of expanding in the in the services area, as defined in our "Beyond Omni- Journey" Strategic Plan.

Unieuro further strengthens its market leadership through an even more comprehensive and integrated offer of products and services, accompanying customers before, during and after purchase.

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Unieuro at a glance

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LETTER TO THE

SHAREHOLDERS FROM

THE CHAIRPERSON

OF THE BOARD

OF DIRECTORS

Dear Shareholders,

The 2023/2024 fiscal year was particularly significant in that we outlined our new strategic path for the next five years and made the biggest acquisition in the Group's history. The Strategic Plan seeks to strengthen Unieuro's distinctive omnichannel positioning and focus firmly on the "Beyond Trade" category, particularly in terms of services, building on the solid relationship with customers and an ability to anticipate their needs. The strategic guidelines will be pursued through constant product and process innovation focused on creating value for all stakeholders, continuing to foster the integration of long-term sustainability actions into business activities, the organisation and corporate culture.

The acquisition of Covercare is a crucial step on the "Beyond Trade" growth path and for our strategic development. It puts Unieuro in a position to seize new business opportunities in the world of services, allows us to enrich the customer journey, diversify the profit mix and strengthen our competitive positioning. It also has interesting sustainability implications, thanks to a business model that naturally leans towards the circular economy and achieving energy savings, which, taken together, strengthen the Group's ESG profile.

The annual results that we submit for your approval reflect the achievement of the operating and financial targets we set for ourselves, achieved against a market backdrop that was affected by geopolitical conflicts, continuing high inflation and purchasing power under pressure, and which contracted for the second year in a row in the consumer electronics sector. In this challenging situation, managerial action has been particularly effective in protecting profitability, through streamlining and efficiency measures, while always maintaining the focus on service and customers, who have continued to reward Unieuro as a market leader. The results we have achieved enable us to continue to remunerate shareholders through the distribution of a dividend in line with company policy.

We will continue to invest significantly to ensure the Group is more and more competitive, agile, and ready to face any new market challenges. We will also continue the constant work of analysing acquisition-led growth opportunities.

On behalf of the Board of Directors, I would like to thank the Company's Management and Staff for their commitment to achieving these goals and you, the Shareholders, for your trust.

May 10, 2024Stefano Meloni Chairperson of the Board of Directors

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Unieuro in breve

CEO'S LETTER

TO THE

SHAREHOLDERS

Dear Shareholders,

In the fiscal year just ended, against a challenging geopolitical and macroeconomic backdrop and faced with a further slowdown in the consumer electronics market, we worked to achieve dual objectives: to preserve the Group's profitability in the short term and to accelerate our medium to long-term growth trajectory.

The resilience of the results we have achieved, meeting the guidance communicated to the market, demonstrates the validity of our approach. Of particular note, we adopted a policy to manage margins which focuses on strategic product categories and higher-margin sales channels, and launched a cost streamlining and efficiency plan, which at times was difficult and painful, and which affected every operational level. These results are even more significant in that they were achieved while maintaining industry leadership and a virtually unchanged market share. Furthermore, the customer satisfaction index (NPS) showed further progress, demonstrating the effectiveness of direct investments in improving our customers' shopping experience as part of the omnichannel strategy.

A year ago we prepared a new growth plan to 2028 with a strategy to balance profitability between "Trade" and "Beyond Trade" through a path to develop the business proposition. Our strategy is built around the consumer, with the goal of offering complete and integrated solutions to respond to every technological need - before, during and after purchase.

Just a few months later, and fully in line with our "Beyond Trade" expansion goals, we completed the services-based acquisition of Covercare, a transformative and crucial transaction for us that will enrich the customer journey and boost Group profitability. The acquisition represents the most strategically and financially significant transaction in our history and marks the resumption of Unieuro's acquisition-led growth and strengthening. We are already working on the integration of Covercare, starting with the strategic, organisational and cultural aspects, in order to make the most of the complementary nature of the two business models and generate business synergies over the medium term with the objective of strengthening both enterprises.

Also in execution of the new Strategic Plan, we have introduced further development initiatives, including partnerships. These include further expansion of the range of private label products and the signing of an electricity price agreement to reduce the exposure to market volatility, in a period of persistent global geopolitical tensions.

In a market environment that continues to be unstable, we remain confident of the Group's prospects and focused on continuing to execute our Strategic Plan, bolstered by the contribution of the newly-acquired Covercare, to create value for the benefit of all our stakeholders.

May 10, 2024	Giancarlo Nicosanti Monterastelli
	Chief Executive Officer

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HIGHLIGHTS

UNIEURO IS ITALY'S LEADING DISTRIBUTOR OF CONSUMER ELECTRONICS AND HOME APPLIANCES, WITH AN OMNICHANNEL APPROACH THAT INTEGRATES A CAPILLARY DISTRIBUTION NETWORK OF DIRECT AND AFFILIATED STORES ACROSS THE ENTIRE NATIONAL TERRITORY WITH THE ONLINE CHANNEL OF UNIEURO.IT DIGITAL PLATFORM.

TOUCH-POINTS

TO SERVE

THE END

CUSTOMER

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