Safilo S p A : Non-Financial Statement 2023

2023 CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT PURSUANT TO LEGISLATIVE DECREE 254/2016

Table of Contents

Highlights .......................................................................................................................................................... 4

1. Safilo .......................................................................................................................................................... 6

1.1 Our Origins and Heritage........................................................................................................... 6

• 1.1.1 Our essence................................................................................................................................... 6

• 1.2 The product at the heart of our history.................................................................................. 7

• 1.3 We are a key leader in the Wholesale Eyewear Market.................................................. 8

• 1.4 Global reach in the Eyewear Market ................................................................................... 10

• 1.5 Key figures and distribution of 2023 economic value ...................................................... 12

• 1.6 Tax transparency ........................................................................................................................ 13

• 1.7 EU Taxonomy (Regulation EU 2020/852) .............................................................................. 15

• 2. A Sustainable Business .......................................................................................................................... 17

  • 2.1 Our key strategies ....................................................................................................................... 17

  • 2.2 Our 3 Ps Approach - People, Product, Planet ................................................................... 17

  • 2.3 Our Strategy ................................................................................................................................. 17

  • 2.4 Materiality Assessment .............................................................................................................. 19

• 3. Safilo Governance ................................................................................................................................ 25

  • 3.1 Governance and Risk Management ................................................................................... 25

  • 3.2 Business Ethics and Compliance ............................................................................................ 31

• 4. Product & Innovation ............................................................................................................................. 34

  • 4.1 Heritage of our Products .......................................................................................................... 34

  • 4.2 Made In Safilo .............................................................................................................................. 34

  • 4.3 Safilo Creation Process: A Product-Minded Process ........................................................ 34

  • 4.4 Quality of raw materials and compliance with best standards ................................... 36

  • 4.5 Forward looking vision ............................................................................................................... 36

  • 4.6 Life Cycle Assessment and production processes ............................................................ 39

• 5. Integrity in the Workplace .................................................................................................................... 41

  • 5.1 Safilo people and The Safilo Way .......................................................................................... 41

  • 5.2 Diversity and inclusion ............................................................................................................... 44

  • 5.3 Ensuring workplace health and safety ................................................................................. 44

  • 5.4 Industrial Relations ...................................................................................................................... 46

• 6. Responsible Partnerships ...................................................................................................................... 48

  • 6.1 Our licensed brands .................................................................................................................. 48

  • 6.2 Our responsible supply chain .................................................................................................. 49

  • 6.3 Our Customers ............................................................................................................................. 51

• 7. Social Responsibility .............................................................................................................................. 54

  • 7.1 Shared value ................................................................................................................................ 54

  • 7.2 Social Initiatives ........................................................................................................................... 54

• 8. Environmental Responsibility ................................................................................................................ 56

  • 8.1 Energy consumption & CO2 emissions ................................................................................. 56

  • 8.2 Waste generation & recycling, and water consumption ............................................... 60

About this Report ........................................................................................................................................... 64

Annexes .......................................................................................................................................................... 67

GRI Content Index ......................................................................................................................................... 82

Contacts ......................................................................................................................................................... 90

Independent Auditor's Report ...................................................................................................................... 91

Safilo, 90 years of excellence to continue looking to the Future together and embracing Digital Transformation and Sustainability

In 2024 Safilo celebrates its 90th birthday, 90 years of excellence that have allowed us to innovate without ever compromising the quality of our products, which has always been our hallmark. This year, once again, we were driven by a great challenge: to continue to evolve conscientiously, looking at the world around us with a constructive spirit. Every day we strive to reduce our environmental impact by minimizing consumption and preserving our planet's resources for future generations.

We continue to act by complying with our purpose-led vision, based on 3 sustainability pillars: Planet, Product and People. Sustainability is the driving force behind many corporate activities that aim to contribute to the achievement of the United Nations 2030 Sustainable Development Goals by sharing a commitment to building a better present and future. In fact, to mark our Capital Market Day last March, we committed ourselves to achieving - in line with our purpose - a number of important sustainability goals based on our pillars.

On the product side, more than 25% of our new collections will be made from certified sustainable materials by 2025. During 2023, therefore, we worked to expand the sustainable products within our portfolio of proprietary and licensed brands through continued research that allows us to use innovative materials to lessen our impact on the planet. Our goal is to increase our collections using sustainable materials, which is why in 2023 we introduced the use of recycled metal with Global Recycling Standard (GRS) certification. Recycled metal thus joins an already rich roster of sustainable materials that include Eastman's Acetate Renew, TritanTM Renew, and TeniteTM Renew, which Safilo itself launched on the market in 2022.

During 2023, we continued our Life Cycle Assessment (LCA) study, by taking into consideration the Group's new industrial footprint, the most representative products in the portfolio, and the new materials used in our production processes. In fact, after starting this process in 2022, this year we completed our assessment by extending the research to include our helmets and masks.

Safilo's commitment to sustainability, however, not only focuses on products, but also takes the form of initiatives able to reduce environmental impact. Through responsible use of resources and materials and renewable production processes, we continue our efforts to reduce our impact in terms of energy consumption and greenhouse gas emissions.

From an environmental perspective, our main goals for fighting climate change are to reduce Safilo's direct and indirect emissions by 70% by 2030 by converting all of the group's energy needs to renewable energy, and to reduce indirect emissions related to supplier and distribution activities by 25% by 2030. In addition, by 2030 all unnecessary single-use plastics will be eliminated, and the remainder will be replaced by plastics with more than 50% recycled content. Our Scope 1 and Scope 2 Science Based emission reduction targets set during 2023 were evaluated and approved in January 2024 by the Science Based Target initiative, in line with a program for limiting global warming. This is a particularly important milestone for us because, through the Science Based Targets initiative, Science Based targets provide companies with a defined, clear and long-term pathway for reducing greenhouse gas emissions and helping to prevent the worst impacts of climate change. The targets are considered Science Based if they are in line with what the latest climatology deems necessary in order to achieve the Paris Agreement goals of limiting global warming to 1.5°C above pre-industrial levels. During 2023, we reduced our CO2 production by 10,700 tons, thereby achieving a 66% reduction compared to 2022. In fact, after having begun to use renewable electricity for the energy consumption of all our Italian facilities in 2022, in 2023 we also introduced the use of renewable electricity in our Chinese plant in Suzhou.

It is thanks to these initiatives that at MIDO 2024 - the eyewear show held annually in Milan - we won an important award: the CSE (Certified Sustainable Eyewear) prize in the "Frame Europe" category for the best sustainable frame with a Tommy Hilfiger model made with Eastman Acetate Renew material and recycled demo lenses, and produced in a plant that uses 100% renewable electricity.

Seeing better means living better, which is why we have decided to increase our social initiatives related to prevention and sight care. Safilo has continued to support the organizations with which it has long collaborated. For 20 years we have supported the nonprofit organization Special Olympics, which strives to transform the livesof people with intellectual disabilities. In recent years, through the Special Olympics Lions Clubs International Foundation Opening Eyes program, we have donated 1.3 million prescription frames and sunglasses. Our commitment is to make as many people as possible see the world at its best, and that includes our Safilo population. We have always cared about eye health, which is why we have worked to create a program dedicated to health and prevention that starts in the office. With this goal, from November 27 to December 7, thanks to Polaroid Eyewear, we offered a free comprehensive eye screening to our employees in Padua and Santa Maria di Sala. This initiative was just the beginning of a project that we would like to expand to make available to our colleagues around the world. This process reflects our intent to adopt a business model characterized by ESG principles, as are our business strategies and choices.

Our efforts during the year paid off, and in 2023 we ranked first in the Integrated Governance Index (IGI) among fashion industry companies. The IGI is a quantitative ranking that rates companies on several aspects related to sustainability governance, including the presence of a sustainability committee, the existence of a compensation policy linked to ESG parameters, female participation in the Board of Directors, and many other criteria. The assessment considered 98 Italian companies and we are proud to have ranked first in the fashion sector, thus confirming the quality of our work and the significant efforts produced in this important field.

It is therefore a source of pride for us to be able to illustrate in this new edition of our Consolidated Non-financial Statement the results achieved in 2023, which would not have been possible without the trust and direct involvement of all our stakeholders.

Thank you all for your contributions and efforts. We are confident that we will be able to continue on this path with the goal of evolving further and continuing to identify new solutions that allow us to look at the world at its best every day.

Angelo Trocchia

CEO Safilo Group

Highlights

OVER 140 YEARS OF EYEWEAR

INDUSTRY TRADITION

Product & Innovation

≈1,790 NEW MODELS DEVELOPED IN 2023 OF WHICH AROUND 300 MADE WITH RECYCLED OR BIO-BASED MATERIALS (17%)

INTRODUCTION OF RECYCLED METALS CERTIFIED WITH GRS. LCA SCREENING AVAILABLE ON MOST REPRESENTATIVE PRODUCT CATEGORIES

Employee Learning & Development 1

MORE THAN 26,400 HOURS OF TRAINING IN 2023

7 AVERAGE HOURS OF TRAINING PER EMPLOYEE IN 2023

Diversity & Inclusion

58% WOMEN IN THE TOTAL WORKFORCE IN 2023	46% FEMALE IN EXECUTIVES, DIRECTORS AND MANAGEMENT CATEGORIES IN 2023
10% OF THE TOTAL WORKFORCE UNDER 30 IN 2023	13 NATIONALITIES AT EXECUTIVE AND DIRECTOR LEVEL IN 2023

Health & Safety 2

14 RECORDABLE WORK-RELATED INJURIES IN 2023

1.98 RATE OF RECORDABLE WORK-RELATED INJURIES IN 2023 VS 1.73 IN 2022

Industrial Relations and Supply Chain Responsibility

65% OF THE TOTAL WORKFORCE WAS COVERED BY COLLECTIVE BARGAINING AGREEMENTS IN 2023

114 SOCIAL AUDITS OF SUPPLIERS IN 20233 (OF ~245 SUPPLIERS OF DIRECT MATERIALS)

Environmental Responsibility 4

5,595 T CO2 EMISSIONS SCOPE 1-2 IN 2023 -66% vs. 2022 (MARKET BASED), AND 195,504 GJ ENERGY CONSUMED IN 2023 -12% VS 2022.

USAGE OF PHOTOVOLTAIC PANELS IN PADUA HQ AND AUSTRALIAN SUBSIDIARY 4 RECHARGING STATIONS FOR ELECTRIC VEHICLES INSTALLED IN PADUA HQ IN 2023

• 1 For further details please refer to the chapter "5.1 Safilo people and The Safilo Way" (pages 41 -44).

• 2 These KPIs are related to the Italian, Chinese manufacturing plants, Padua headquarters, and for the first year are included also Denver distribution center, Clearfield plant (2 work-related injuries) and Secaucus and Portland offices. The KPIs do not include external collaborators' data (the Group has no direct control on data from the employers of workers who are not employees).

3 The majority of these audits included the review of social and environmental aspects following the SMETA 4 Pillar standard or, in the case of just a social audit, following the SLCP standard.

4 2023 energy consumption and CO2 emissions included energy savings generated from specific projects including also restructuring initiative and from the signing by Group's Italian legal entities and Chinese manufacturing of an agreement to supply 100% of electric energy needs from renewable sources. For Scope 2 CO2 emissions the KPI is defined using the market-based calculation methodology.

For further details please refer to the chapter "8.1 Energy consumption & CO2 emissions" (pages 56 -59).

Signature Social Responsibility Partnerships

SPECIAL OLYMPICS

MORE THAN 1.3 MILLION OPTICAL FRAMES AND SUNGLASSES DONATED

OVER THE PAST 20 YEARS.

UMBERTO VERONESI FOUNDATION

SAFILO WITH POLAROID EYEWEAR HAS SUPPORTED SCIENTIFIC RESEARCH ON EYE CARE

THROUGH A PARTNERSHIP WITH UMBERTO VERONESI FOUNDATION.

United Nations 2030 Sustainable Development Goals

Sustainability is at the heart of the Safilo's business strategies and is based on the development of projects and initiatives that can contribute to the achievement of the United Nations 2030 Sustainable Development Goals, and aim to create shared social, environmental and economic value in the communities in which we operate.

Safilo's attention is focused, in particular, on goals 3 (Good Health and Wellbeing), 4 (Quality Education), 5 (Gender Equality), 6 (Clean Water and Sanitation), 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), 9 (Industry Innovation and Infrastructure), 12 (Responsible Consumption and Production), 13 (Climate Action), 14 (Life below Water), 15 (Life on Land), and 17 (Partnerships for the Goals). These prioritization of ESG goals are the result of an internal analysis performed by the Group during 2023.

1. Safilo

1.1

Our Origins and Heritage

Safilo Group is one of the eyewear industry's most important players in the design, manufacturing and distribution of optical frames, sunglasses, sports eyewear, goggles and helmets.

The origins of the Group's activities date back to 1934, when Guglielmo Tabacchi purchased the first Italian eyewear lens and frames production facility, which had been in business since 1878 in Calalzo di Cadore, and established the 'Società Azionaria Fabbrica Italiana Lavorazioni Occhiali', the longest-standing eyewear manufacturer in the industry.

Safilo Group designs and manufactures its collections by blending stylistic, technical and industrial innovation with quality and skilful craftsmanship. Research, development and design have always been the Group's cornerstones: thanks to its constant experimentation with new materials and shapes, specific skills and savoir-faire, Safilo is at the forefront in setting eyewear fashion trends worldwide and plays a key role in the global eyewear industry.

1.1.1 Our essence

Our values are what we believe in as a company.

Our competencies define our unique contributions and where each of us must excel to realize our purpose.

Our purpose, values and competencies drive the vision of who we want to be: a sustainable leader.

We aspire to be a trusted partner and premier eyewear creator.

We are:

People Centric: We believe people are at the heart of everything. For this reason, we strive to make the work environment also a place where, at any time, we can thrive and develop our skills, sharing experiences andcollaborating with everyone. In this way we create relationships based on trust, competence, and loyalty. In this way we create value.

Purpose Led: We always look for the best balance between present and future. We believe in projects that are not limited to the short term, and that always have a powerful sense of environmental, cultural, and social responsibility. Only in this way we can work concretely to improve our planet and contribute to the development of a truly inclusive and sustainable economy. In this way we look forward.

Innovation Driven: We always look in one direction: beyond. Always starting from our roots entrenched in tradition, we work toward a new concept of innovation that unites beauty and functionality, that evolves based on a digital model, and that approaches the world in a clear and responsible way. Innovation that allows our never-ending passion to go beyond the ordinary. In this way we create the future.

1.2

The product at the heart of our history

Safilo is born

2005

Safilo Group S.p.A. shares listed on the Milan Stock Exchange

Launch of ECONYL® regenerated nylon in eyewear collections, Recyclable, recycled and FSC certified marketing materials

2021

New license partnerships and commercial expansion through a direct subsidiary in Poland

Share Capital increase

Launch of Smith "IMPRINT 3D" technology

Recycled and bio-based materials in eyewear collections Certifications ISCC Plus and GRS

2022

2023

First player to adopt all Eastman Renew materials included TeniteTM Renew and TritanTM Renew. FSC® certificate assures that products come from responsibly managed forests and provide environmental, social and economic benefits Safilo signs The Fashion Pact: a global coalition of companies in the fashion and textile industry all committed to stop global warming, restoring biodiversity and protecting the oceans

A partnership with Amazon for the launch of new Carrera Smart Glasses with Alexa, blending Safilo's Italian design with Alexa technology into two iconic frames. Safilo ranked first in the Fashion sector-related ranking of the Integrated Governance Index 2023. Safilo completed the CDP questionnaire and committed to Science Based Targets initiative

1.3

We are a key leader in the Wholesale Eyewear Market

Organic 2023 revenues were close to those of 2022 and grew net of the business in the former GrandVision chains, there was a significant improvement in gross margin reinvested in the marketing, IT and digital projects envisaged in the Group's Business Plan and instrumental to the growth and solidity of the Group in the long term.

Safilo Group is one of the eyewear industry's principal players which is active in the manufacturing of eyewear sector5. With an extensive global presence, our business model enables us to monitor the entire production and distribution chain: from research and development, with prestigious design studios in Padua, Milan, Secaucus New York, Hong Kong and Portland, to production, with our own company-owned production facilities and network of qualified manufacturing partners, thanks to which the Group is able to ensure that every product can offer the right value proposition for the consumer and meets the highest quality standards, and distribution. Safilo is deeply committed to its Italian roots- from world-class design and product creation and its highly automated distribution centre in Padova, to its manufacturing sites in Santa Maria di Sala and Bergamo - which represent a competitive advantage.

The creation of shared value for all stakeholders is at the heart of Safilo's strategy and, thanks to its own brands and licensed brands, Safilo covers all market segments, from fashion luxury to more dynamic products for customers with a contemporary style and a focus on value for money, or for customers interested in sustainable and technological innovation. Furthermore, the business is highly diversified, offering different product categories: optical frames, sunglasses, goggles, bike and snow helmets.

5 Safilo operates in the industry defined by NACE code 32.50 - Manufacture of medical and dental instruments and supplies

Safilo designs and manufactures collections of optical frames, sunglasses, sports eyewear, goggles and helmets that combine research with innovation and style to meet the expectations and needs of different brands, opticians and the end consumer.

We are firmly convinced that the eyewear sector makes a positive contribution to people's quality of life by providing better eyesight.

Our Brands

The Group's portfolio includes own core brands and licensed brands.

Own core brands are strategically crucial to the Group's development goals which is why alongside those already part of its portfolio - Carrera, Polaroid and Smith among the main ones - in 2020 there were two great new additions through direct acquisitions, Blenders Eyewear and Privé Revaux.

The Group's licensed brands are among the leading and most diversified in the eyewear sector. A multitude of fashion houses trust to Safilo for their eyewear collections, recognizing the great expertise and knowledge that it has built over the years, its ability to best interpret and enhance every single brand's DNA, and the unique savoir-faire that enables it to create success stories in the eyewear industry. In 2023 Safilo Group announced a global and exclusive licensing agreement for the design, manufacturing, and distribution of Etro branded eyewear collections and a new licensing agreement with Stuart Weitzman brand. Furthermore, Safilo renewed in advance important licenses as Tommy Hilfiger, Kate Spade, Fossil, Juicy Couture and Havaianas.

Own Core Brands

Safilo's Own Core Brands are of high strategic importance for the Group's future development and objectives, each playing a key role in the respective market segment.