Silvano Fashion Group Consolidated Interim Financial Report for Q1 of 2020 (unaudited)

Selected Financial IndicatorsSummarized selected financial indicators of the Group for Q1 of 2020 compared to Q1 of 2019 and 31.03.2020 compared to 31.12.2019 were as follows:Financial performanceThe Group`s sales amounted to 11 546 thousand EUR during Q1 of 2020, representing a 16.5% decrease as compared to the same period of previous year. Overall, wholesales decreased by 22.3%, measured in EUR.The Group’s gross profit during Q1 of 2020 amounted to 7 146 thousand EUR and increase by 10.7% compared to previous year. The gross margin during Q1 of 2020 increased to 61.9%, from 46.7% in the respective period of previous year. The cost of sold goods decreased by 40.3%.Consolidated operating profit for Q1 of 2020 amounted to 3 152 thousand EUR, compared to 2 322 thousand EUR in Q1 of 2019, increase by 35.7%. The consolidated operating profit margin was 27.3% for Q1 of 2020 (16.8% in Q1 of 2019). Consolidated EBITDA for Q1 of 2020 increased by 34.5% and amounted to 4 248 thousand EUR, which is 36.8% in margin terms (3 158 thousand EUR and 22.9% for Q1 of 2019).Reported consolidated net loss attributable to equity holders of the Parent company for Q1 of 2020 amounted to        -1 406 thousand EUR, compared to net profit of 3 098 thousand EUR in Q1 of 2019, net profit (loss) margin attributable to equity holders of the Parent company for Q1 of 2020 was -12.2% against 22.4% in Q1 of 2019.Financial positionAs of 31 March 2020 consolidated assets amounted to 41 682 thousand EUR representing decrease by 10.0% as compared to the position as of 31 December 2019.Trade and other receivables decreased by 318 thousand EUR as compared to 31 December 2019 and amounted to    2 292 thousand EUR as of 31 March 2020. Inventory balance decreased by 2 137 thousand EUR and amounted to 17 222 thousand EUR as of 31 March 2020.Equity attributable to equity holders of the Parent company decreased by 3 983 thousand EUR and amounted to            22 341 thousand EUR as of 31 March 2020. Current liabilities decreased by 275 thousand EUR during    Q1 of 2020.InvestmentsDuring Q1 of 2020 the Group’s investments into property, plant and equipment totalled 96 thousand EUR, in previous year same period 562 thousand EUR. Investments were made mainly into opening and renovating own stores, as well into equipment and facilities to maintain effective production for future periods.PersonnelAs of 31 March 2020, the Group employed 1 856 employees, including 506 people in retail operations. The rest were employed in production, wholesale, administration and support operations. In 31.12.2019 there were 1 888 employees, including 503 people in retail operations.Total salaries and related taxes during Q1 of 2020 amounted to 3 145 thousand EUR (3 350 thousand EUR in Q1 of 2019). The remuneration of key management of the Group, including the key executives of all subsidiaries, totalled 210 thousand EUR.Consolidated Statement of Financial Position