Silvano Fashion Group Consolidated Interim Financial Report for the Fourth Quarter and 12 Months of 2023 (Unaudited)

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Carefully selected financial indicators

A summary of selected financial measures of the Group for 12 months 2023 and 12 months 2022 and as of 31 December 2023 and 31 December 2022 is as follows:

in thousands of euros	12 minutes 2023	12 minutes 2022	change
revenue	58 597	57 667	1.6%
gross profit	33 743	30 884	9.3%
Operating income	17 973	14 665	22.6%
EBITDA	21 120	18 283	15.5%
net income	11 107	12 544	-11.5%
Net income attributable to parent company shareholders	9 927	11 796	-15.8%
Earnings per share (euros)	0,28	0,33	-15.2%
Operating cash flow for the current period	11 703	14 062	-16.8%

in thousands of euros	2023.12.31	December 31, 2022	change
Total assets	72 252	63 991	12.9%
Total current assets	59 395	50 309	18.1%
Total capital attributable to parent company shareholders	54 120	44 786	20.8%
cash and cash equivalents	32 878	25 909	26.9%

Margin analysis, %	12 minutes 2023	12 minutes 2022	change
gross profit	57.6	53.6	7.5%
Operating income	30.7	25.4	20.9%
EBITDA	36.0	31.7	13.6%
Net income	19.0	21.8	-12.8%
Net income attributable to owners of parent company	16.9	20.5	-17.6%

Financial ratios, %	2023.12.31	2022.12.31	change
ROA	14.5	19.0	-23.7%
egg	20.2	28.1	-28.1%
Price earnings ratio (PER)	4.1	3.4	20.6%
current ratio	5.8	5.1	13.7%
Quick ratio	3.4	2.8	21.4%

financial performance

Group sales for the 12 months of 2023 amounted to €58,597,000, an increase of 1.6% compared to the same period last year. Overall, wholesale trade increased by 2.8% in euro terms.

The Group’s gross profit for the 12 months of 2023 amounted to EUR 33,743 thousand, an increase of 9.3% year-on-year. Gross profit for the 12 months of 2023 increased by 7.5% compared to the 12 months of 2022. Cost of goods sold decreased by 7.2%.

Consolidated operating profit for 12 months 2023 amounted to 17,973 thousand euros, and consolidated operating profit for 12 months 2022 amounted to 14,665,000 euros, an increase of 22.6%. Consolidated operating profit margin for 12 months 2023 was 30.7% (25.4% for 12 months 2022). Consolidated EBITDA for the 12 months of 2023 increased by 15.5% to €21.12 million, or 36.0% in terms of margin (12 months of 2022: €18.283 million, 31.7%).

Reported consolidated net profit attributable to owners of parent for 12 months 2023 was €9,927,000, net profit for 12 months 2022 was €11,796,000, and net profit margin attributable to owners of parent was €11,796,000. was. His 12-month net profit in 2023 was 16.9%, while his 12-month net profit in 2022 was his 20.5%.

financial condition

Consolidated assets as of December 31, 2023 amounted to EUR 72,252 thousand, an increase of 12.9% compared to December 31, 2022.

Trade and other receivables increased by €310,000 compared to December 31, 2022 to €1,354 thousand at December 31, 2023. The inventory balance increased by EUR 1,676 thousand to EUR 23,940 thousand as of December 31, 2023.

The equity attributable to shareholders of the parent company increased by EUR 9,334,000 to EUR 54,120,000 as of December 31, 2023. Current liabilities increased by €384,000 in the 12 months of 2023.

investment

The Group’s investments in property, plant and equipment for the 12 months of 2023 totaled €1,133,000, compared to €445,000 in the same period last year. Investments were primarily made in opening and renovating our own stores and in equipment and equipment to maintain efficient production into the future.

Staff

As of December 31, 2023, the Group employed 1,626 people, including 500 people in its retail business. The remainder were engaged in production, wholesale, management, and support operations. As of December 31, 2022, he had 1,616 employees, of whom 499 were employed in the retail industry.

Total salary and related taxes for the 12 months of 2023 were €13,267,000 (€12,759,000 for the 12 months of 2022). Remuneration for the Group’s key management team, including key executives from all subsidiaries, totaled €552,000.

Decisions taken by governing bodies during the 12 months of 2023

On May 24, 2023, AS Silvano Fashion Group proposed to its shareholders to adopt a resolution without convening an annual general meeting.

The notice of the general meeting was published on the information system NASDAQ OMX Tallinn on May 24, 2023. https://view.news.eu.nasdaq.com/view?id=bc3e622810054b7a49a4f706f81ac5063&lang=en&src=listed

and Warsaw Stock Exchange (SFG website) https://www.silvanofashion.com/investors/company-payments/ It was also published in the daily newspaper Eesti Päevaleht.

On June 15, 2023, Silvano Fashion Group held its regular annual general meeting of shareholders. The following decisions were adopted at the meeting:

• Approved the 2022 Annual Report.

• Net income remained undistributed and included net income in retained earnings for fiscal year 2022.

The minutes of the general meeting were posted on the AS Silvano Fashion Group website https://www.silvanofashion.com/investors/company-payments/.

Consolidated statement of financial position

in thousands of euros	Note	2023.12.31	2022.12.31
		unaudited	audited
assets
current assets
cash and cash equivalents	2	32 878	25 909
Trade and other receivables	3	1 354	1 044
Prepayments and other tax receivables	3	1 115	971
Loans currently granted		29	Ten
Other assets		79	111
stock	Four	23 940	22 264
Total current assets		59 395	50 309

non-current assets
long term receivables		292	301
Investment in affiliated companies		85	82
Investing in other stocks		213	259
Deferred tax asset		2 155	2 166
intangible assets		579	585
investment property		899	1 041
Tangible fixed assets	Five	8 634	9 248
Total fixed assets		12 857	13 682
Total assets		72 252	63 991

debt and equity
Current Liabilities
Current lease liability		2 162	2 373
Trade and other payables	6	7 377	5 837
tax liability		747	1 692
Total current liabilities		10 286	9 902

Fixed debt
Deferred tax liability		736	1 039
fixed lease liability		4 321	4 041
Non-current regulations		46	41
Total fixed liabilities		5 103	5 121
Total debt		15 389	15 023

capital
share capital	7	3 600	3 600
capital surplus		4 967	4 967
Statutory reserve capital		1 306	1 306
Unrealized exchange rate difference		-20 002	-19 409
retained earnings		64 249	54 322
Total capital attributable to parent company shareholders		54 120	44 786
non-controlling interest		2 743	4 182
Total capital		56 863	48 968
Total equity and debt		72 252	63 991

Consolidated income statement

in thousands of euros	Note	Q4 2023	Q4 2022	12 minutes 2023	12 minutes 2022
		unaudited	unaudited	unaudited	audited
Revenue from contracts with customers	9	11 858	13 693	58 597	57 667
Cost of sales		-6 193	-4 875	-24 854	-26 783
gross profit		5 665	8 818	33 743	30 884

Distribution expenses		-2 501	-3 023	-10 572	-11 143
Management fee		-1 198	-1 255	-4 501	-4 391
Other operating income		92	176	286	525
Other operating expenses		-352	-662	-983	-1 210
Operating income		1 706	4 054	17 973	14 665

Exchange income/(expenditure)		237	-3 919	-3 345	1 117
Other financial income/(expenses)		93	-350	-93	-453
financial net income		330	-4 269	-3 438	664

Equity method profit (loss)		Five	2	twenty four	1
Pre-tax profit		2 041	-213	14 559	15 330

income tax expense		224	241	-3 452	-2 786

Net income		2 265	28	11 107	12 544
Cause:
Parent company shareholder		2 015	-39	9 927	11 796
non-controlling interest		250	67	1 180	748

Earnings per share from earnings attributable to owners of the parent company (both basic and diluted earnings) (in euros)	8	0,06	0,00	0,28	0,33

Consolidated statement of comprehensive income

in thousands of euros	Note	Q4 2023	Q4 2022	12 minutes 2023	12 minutes 2022
		unaudited	unaudited	unaudited	audited

Net income		2 265	28	11 107	12 544

Other comprehensive income (loss) reclassified to profit or loss in subsequent periods:
Exchange differences related to translations for overseas business		-2 799	-3 052	-2 520	-877
Total other comprehensive income for the period		-2 799	-3 052	-2 520	-877

Total comprehensive income Current period (loss)		-534	-3 024	8 587	11 667
Cause:
Parent company shareholder		1 625	-3 307	9 334	10 638
non-controlling interest		-2 159	283	-747	1 029

Consolidated cash flow statement

in thousands of euros	Note	12 minutes 2023	12 minutes 2022
		unaudited	audited
Cash flow from operating activities
Net income		11 107	12 544
Adjustments below:
Depreciation of fixed assets		3 147	3 618
Profit sharing ratio of equity method affiliates		-twenty four	-1
Gains and losses on sales of tangible fixed assets		1	8
Financial net income/expenses		3 438	-664
Allowance for impairment of trade receivables		54	2
Inventory allowance		1 198	683
income tax expense		3 452	2 786
Stock fluctuations		-7 845	-1 358
Changes in trade and other receivables		-839	199
Changes in trade and other payables		2 530	-667
income tax paid		-4 516	-3 088
Net cash flow from operating activities		11 703	14 062

Cash flow from investment activities
Interest income		601	38
Dividend income		11	3
Proceeds from disposal of tangible fixed assets		39	58
Number of loans		-19	-8
Acquisition of tangible fixed assets		-1 133	-445
Acquisition of intangible assets		-144	-113
Net cash flow from investing activities		-645	-467

Cash flow from financing activities
Principal repayment of lease debt		-2 307	-2 634
Interest expense on lease debt		-688	-546
Dividend payment amount		-692	-560
Net cash flow from financing activities		-3 687	-3 740

Net increase in cash and cash equivalents		7 371	9 855
Opening balance of cash and cash equivalents		25 909	17 098
Impact of translation on display currency		-845	-509
Impact of exchange rate fluctuations on cash held		443	-535
Ending cash and cash equivalents		32 878	25 909