Brunello Cucinelli Spa

Fulir 2025 della Casa di Moda Brunello Cucinelli. I relatori saranno Brunello Cucinelli, Presidente Esecutivo e Direttore Creativo, Luca Lisandroni, CEO, Riccardo Stefanelli, CEO, Dario Pipitone, CFO, Moreno Ciarapica, Co-CFO Senior, and Pietro Arnaboldi, Investor Relations and Corporate Planning Director. To receive assistance from an operator during the conference call, type asterisk followed by asterisk.

Good evening, welcome, as always, investors, analysts, journalists. So, the most important thing is that next week we have the Milanese Fashion Week, perhaps the most important appointment for our industry.

And we have the international as well as the italian press coming to the appointment and we can definitely talk freely speak freely with them because we have already disclosed our results this is The same happens when we go to PT in the early January. Then the second item, having clarified and completed our entire relationship with the new course of SACS Global, following its restructuring, now this allows us to share everything with you. And we are very satisfied with this new relationship, both in terms of sales and brand image. So these new timings, So for this call, we would like to also keep this schedule also for the years to come. As always, all 10 of us are here today. This is how we would like to proceed. I will present the key figures. Dario, our CFO, will go through the details. I will explain everything regarding SACS Global. Then I will go through a detailed growth plan for 2026, a couple of words on 2027. Luca will touch upon the international markets and then five minutes for the strengths of our business model in which we strongly believe and where we see great opportunities for the years ahead. So excellent revenues with a turnover of €1.408 billion, representing growth of 11.5% at constant exchange rates and 10.1% at current exchange rates. Normalised EBIT of €235.9 million, representing an increase of 11.4%, margins of 16.8%, up from 16.6% the previous year. Net profit of 142 million euros, an increase of 10.5% with an impact on sales of 10.1%, in line with the previous year. So the completion of the 2024, 2025 and 2026 three-year project for made-in-Italy artisanal production has been brought forward by six months with extraordinary investment. And this will enable us to operate, to function with confidence over the next 10 to 15 years. So in 2025, investment amounted to 146.2 million euros, accounting for 10.4% of turnover. Net debt for the core business amounted to 198.4 million euros, reflecting the significant investments made and the distribution of 68.8 million euros in dividends. The Board of Directors will propose the shareholders' meeting called for 23rd April 2026, so the proposal will be the distribution of a dividend of 1.04 euros per share, payout of 51%. Then, the strong start to sales in the boutiques is also another important item, together with a solid order intake for the upcoming fall-winter men's and women's collections. And this enables us to confirm for 2026 an expected revenue increase of around 10% at constant exchange rate, reflecting our long-term sustainable growth project. A gradual improvement in the financial position is expected, favoured by the return to ordinary investment levels from 2026, having completed ahead of schedule the significant investment plan for the Made in Italy artisanal production. On 21st January this year, the new AI-based e-commerce website was unveiled. It was developed on the proprietary Calimicus platform with the aim of offering personalized, tailor-made experiences and placing uniqueness, exploration, discovery right at the core. We believe that this new pageless website can generate benefits both in terms of brand image and revenue. And I'll give you more color later on. On April the 14th in New York at the Lincoln Center, We will host the first of the world premiere of the documentary film Brunello, the Gracious Visionary, following the warm reception given to its absolute premiere on December the 4th in Rome, Cinecittà. The premiere will continue in the major world capitals and it will end in December in the Middle East. And this will entail a lot of travel. So a year has ended that we are pleased to describe as solid, balanced and beautiful, marked by excellent results in terms of revenue, profits and also international recognition. These achievements should allow us to look ahead with confidence to a future of outstanding prospects, growth in the years to come, positive forecasts and enduring prosperity. Markets across all geographies appear to be expanding in a healthy and harmonious manner, where each fashion brand expresses its own heritage, identity and positioning. We are receiving extremely positive feedback regarding the Calimacus platform developed by our Solome AI. Our new e-commerce conceived to offer visitors an AI-driven digital experience through which they may discover the brand's collections in a manner that is consistent with the values that have always inspired us. At the core of Calimacus lies a new concept of website without pages and endowed with its own intelligence. It is a system that is capable of understanding and following each user's preferences, delivering a personalized, dynamic and pleasant and engaging experience in real time. Visitors are spending more time on the new e-commerce platform than in the past because the experience seems to be both stimulating and enjoyable. To conclude, in this first part of the year, sales continue to perform extremely well across all markets. And then Luca will give you more colour on this. The excellent ordering take currently underway for the fall-winter 26 collections. together with the positive feedback from buyers, the international press and our teams in our boutiques, well, this leads us to envisage with confidence for this year too, a balanced and solid revenue growth of around 10%, accompanied by the achievement of a healthy profit. And now, Dario. You know that you have been translated, so do not speed up too much. Yes, thank you Brunello and good evening everyone. I will begin with an analysis of, and please use the presentation to follow the slides from slide 24 onwards of the presentation. The final revenue figures confirm the preliminary data released last January 12 with revenue growth of 10.1% current exchange rates and 11.5% constant exchange rates. With regard to the other income statement items, Slide 26 shows that as at 31st December 2025, we report a balanced margin and cost structure with the reported EBIT and net profit increasing by 7.6% and 10.5% respectively compared to December 31st last year. Normalising margins for the external provision of 8.1 million euros recorded during the year following the Chapter 11 filing of our client Sax Global. So, normalised EBIT amounts to 235.9 million euros or 16.8% of revenues compared to 16.6% in 2024. A growth of 11.4% reported there. First margin equal to 75.2% of revenues increased by 11.1% compared to last year, mainly ascribable to the sales mix by distribution channel, product mix and geography. Operating costs increased by 10.5%, reflecting the expansion of our fashion house. Now, moving to slide 28 for a detailed analysis of the main cost items, namely personnel costs, rents and communication investments. So we can highlight that personnel costs as of 31st December 2025 amounted to 255.4 million euros. And it's increasing by 9.4%, slightly less than proportional to revenue growth, with an impact of 18.1%. As of 31st December, sorry, it was 18.3% last year. As of 31st December 2025, total headcount stands at 3,327 FTEs, with increase of 226 FTEs. compared to last year and this is down to the targeted expansion of our retail network and also the strengthening of our artisanal production workforce as part of the project launched last year to expand in-house handcrafted production. Now moving on to rent costs, so net of IFRS 16 effects This cost amounted to €218.9 million or 15.6% of revenues, up 19.5% compared to €183.2 million or 14.3% of revenues as last year. This increase is mainly down to three different items. New and selected openings and enlargements carried out throughout the year, certainly important lease renewals and partially cost that we began recognising in 2025 relating to openings and enlargements expected in the coming months. As to the communication investments, they went up by 5% or 4.6 million amounting to 96.9 million euros with an impact of 6.9% vis-à-vis 92.3 million euros or 7.2% last year. So, the above reflects our ongoing and increasingly strong focus on consolidating the brand's positioning within the absolute luxury segment, as well as organising family organizing small events that enhance the brand's allure without affecting its exclusivity. As we said last August, major events were concentrated in the second half of the year mainly, with communication investments accounting for 7.2% of revenues compared to 6.5% in the first six months.