Farmae S p A : THE BOARD OF DIRECTORS APPROVES THE 2023-2025 BUSINESS PLAN, THE DRAFT FINANCIAL STATEMENTS AND THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 DECEMBER 2022

Press Release

THE BOARD OF DIRECTORS APPROVES THE 2023-2025 BUSINESS PLAN, THE

DRAFT FINANCIAL STATEMENTS AND THE CONSOLIDATED FINANCIAL

STATEMENTS AS OF 31 DECEMBER 2022

ROADMAP TO 2025

Significant acceleration of organic growth and margins thanks to the Talea Group's new strategy, introduced to the market on 14 February 2023, aimed at developing new revenue opportunities in the Industrial area, dedicated to business services through Talea Media and Valnan, and at consolidating the leadership in the Consumer area, thanks to the commercial brands Farmaè, Amicafarmacia, Farmaeurope, Beautyè and Sanort

TARGETS TO 2025

• • Turnover: between Euro 220 and 230 million

• • EBITDA between Euro 13 and 14 million

• • Long-term sustainable EBITDA margin of around 6%

• • Net Financial Debt: Euro 11-10 million

2022 CONSOLIDATED RESULTS

• • Consolidated ADJ REVENUES1, including co-marketing activities, of Euro 120,9 million, up

  of 40.8% from Euro 85.9 million in 2021;

• • Consolidated adj EBITDA of Euro 2.5 million compared to Euro 2.7 million in 2021;

• • Consolidated Net Result negative for Euro 0.8 million compared to negative Euro 0.1 million

  in 2021;

• • Consolidated Net Financial Debt of Euro 21.3 million compared to Euro 14.1 million as of 31

  December 2021 and Euro 19.7 million as of 30 June 2022.

STOCK OPTION PLAN 2023-2028 APPROVED

Viareggio, 28 March 2023 - The Board of Directors of Farmaè S.p.A. - Farmaè S.p.A. - a company listed on the Euronext Growth Milan market of Borsa Italiana, a leading integrated platform in Italy in the healthcare, beauty and wellness sectors ("Farmaè" or the "Company") - under the chairmanship of Riccardo Iacometti,

1 Following the new Group strategy that envisages two revenue-generating areas, Consumer and Industrial, Adj Revenues include revenues from co-marketing activities, which, for IAS/IFRS reporting purposes, are accounted for partly as a reduction of Cost of Sales and partly as a reduction of Selling & Distribution Costs.

approved the 2023-2025 Business Plan, the draft statutory financial statements and the consolidated financial statements as at 31 December 2022, prepared in accordance with International Accounting Standards ("IAS/IFRS").

Riccardo Iacometti, Founder and Managing Director of Farmaè, commented as follows: "On 14 February we presented the rebranding of the Group into Talea Group - Digital People Oriented and our strategy for the next years: a major growth and development project, which has the goal of enhancing our strengths, which we have cultivated and helped to grow by looking at our stakeholders, just like a cutting that becomes a strong and healthy plant. Today we add further substance to this plan, presenting, in a challenging and non-linear market context, our economic-financial targets for 2025, the result of those industrial KPIs already anticipated a month ago. These objectives start from the solid results achieved in 2022 which, despite the inflationary scenario and the recessionary economic scenario, showed significant growth in terms of industrial KPIs and revenues, with the maintenance of a positive margin, albeit slightly down due to the commercial choice to only partially pass on the increase in costs to final consumers for the benefit of developing market share. In the awareness that an healthy growth is such only if accompanied by adequate profitability, we are convinced that it is increasingly necessary to broaden the product categories treated by the consumers area ever closer to the concept and philosophy of personal well-being "Talea well-being" and the development of a business area, such as the Industrial one, through the Talea Media project and the consolidation of the positioning of Valnan on the market. The development of the Industrial area is being appreciated by the Industries of the sector and we believe that in the long-term it could be one of the main drivers of our growth in terms of profitability. I also underline the positive trend of these first months of the year, which makes us confident about the possibility of achieving continuously improving results and in line with the plan objectives presented today."

***

ROADMAP TO 2025

On 14 February 2023, the Group presented the rebranding project from Farmaè Group to Talea Group, the evolution of the growth strategy, as well as the main industrial KPIs to 2025 (see press releasehere).

The growth strategy is driven by the principle of sustainable development to guarantee a balance between economic development, environmental impact and social wellbeing; it envisages:

• • consolidating market leadership in the e-retailing of health, wellness and beauty products (the Group's core business) with the Farmaè, AmicaFarmacia, Farmaeurope, Sanort and Beautyè brands;

• • seizing new revenue opportunities in business services with the creation of Talea Media, the Group's new brand for managing an ecosystem of digital opportunities for companies;

• • pursuing growth by acquiring new companies in cross-border markets, with the aim of expanding the product offering;

• • starting the internationalisation process with the development of the multi-store approach in the main European countries (Germany, France, Spain, England) and through strategic industrial partnerships.

The key pillars of the growth strategy

Underlying the Group's growth strategy is the desire to support the evolution of companies in the current digital scenario, not only by offering proprietary platforms for the sale of products, but also through strategic advisory services for the digital evolution of business models.

The Group's strategy rests on three key pillars:

• • needs, thanks to the ability to intercept the expressed and unexpressed demands of the relevant communities, therefore no longer just of the consumer or customer, but of the individual and of

companies, identifying the most suitable markets to satisfy the different needs, offering evolved engagement experiences through a universe of reliable, simple, secure digital solutions;

• • digital evolution, through the ability to evolve companies' business models thanks to digital culture, making them more competitive in their relevant markets and closer to the needs of people and companies, building new services, channels and positioning capable of exploiting all the skills and capacities to generate performance, even in cross-cutting markets, based on digital know-how;

• • data economy, with the ability to generate growth in the Group's relevant markets through a business analytics approach that analyses the data of millions of active customers who interact daily on the Group's platforms. It is thanks to the exploitation of data that the Group is also able to offer direct services to businesses.

Talea Media is born

Talea Media is the Group's new brand, designed and created to manage an ecosystem of digital opportunities for businesses. It offers services on the Group's digital platforms (eCommerce) ranging from strategic consulting - to understand the actual needs of end consumers and devise customised engagement solutions - to Data Analysis, supporting companies in analysing their positioning and drafting new models, up to the construction of new digital languages, both visual and content-related, and the development of digital marketing strategies aimed at engaging and acquiring leads and customers through proprietary digital channels and the use of Media.

The evolution of the supply chain

Talea Logistics is the Group's new logistics core that is entrusted with the efficient and fast delivery of products sold on proprietary digital platforms. To optimise services and offer consumers a fast and streamlined shopping experience, new logistics hubs are planned. In particular, a new 12,000 square metre automated logistics hub in Piedmont will be opened by 2023, in addition to the current 5,000 square metre logistics hub in Tuscany.

In addition, new investments in technology are being considered for greater automation of processes and operations in the logistics hubs and thus greater cost efficiency. The Group also intends to capitalise on its logistics know-how and the investments made over the years by offering its logistics services to all those small/medium-sized Italian companies approaching online business. The Group's entire logistics-supply chain strategy will be marked by sustainability, with the aim of implementing solutions that are not only economically efficient, but that can make a concrete contribution to the well-being of people and the environment.

Talea Group structure and industry targets to 2025

The Talea Group's business model is based on two main areas of activity:

• • the Consumers Area, namely the current e-retailing business of Farmaè, AmicaFarmacia, Farmaeurope, Sanort and Beautyè;

• • the Industrial Area, dedicated to media services and digital transformation with Valnan and Talea Media.

The model develops from the need to resolve a state of necessity by the integrated commercial platforms (consumers area: online+retail) of the Group's current brands (Farmaè, Amicafarmacia, Farmaeurope, Sanort and Beautyè) thanks to their service vocation (product, delivery and advice).

Thanks to the work of the proprietary digital platforms, a highly profiled audience is generated capable of generating value for those industries in the sector (and not) that intend to invest in Talea Media.

The model in its circularity (circular economy) is enhanced by the profitability of the data economy.

Main consolidated targets to 2025

• • Revenues Adj: Euro 220-230 million (CAGR 2022-2025 equal to 23%)

• • EBITDA Adj: Euro 13-14 million (CAGR 2022-2025 equal to 71%)

• • EBITDA Adj margin about 6%

• • Net Financial Debt: Euro 11-10 million

• • Capex 2023-2025: Euro 20 million

Consumers Area

• • Number of orders on platforms: 4 Mln (CAGR 2022-2025 equal to +18.8%)

• • Number of products sold: 21.6 Mln (CAGR 2022-2025 equal to +21.4%)

• • Number of active customers (Consumer): 1,700,000 (CAGR 2022-2025 equal to +16.5%)

• • Platform sessions: 90 Mln

• • SKUs: 150,000 thanks to the entrance of new category

Industrial Area

• • Number of customers (Industrial): 400 (CAGR 2022-2025 equal to +30.5%)

Talea Group

• • Media Budget: Euro 15 million

MAIN ECONOMIC AND FINANCIAL RESULTS AS AT 31 DECEMBER 2022

Volume growth accelerated for Farmaè, which achieved a 40% increase in orders and consolidated Adj revenues of Euro 120,9 million in FY2022, up +40.8% year-on-year. The growth in volumes and turnover was driven by the excellent performance of the online platforms and the consolidation of the retail experience for the Farmaè, AmicaFarmacia, FarmaEurope, Beautyè and Sanort brands, as well as the growth and ongoing introduction of new product categories - such as PET - and the expansion of the offer in the beauty, orthopaedics and homeopathy segments. This growth was not sufficient, particularly in the second half of the year, to fully offset inflation resulting from the combined effects of the war in Ukraine, geopolitical tensions and uncertainty over commodity prices. These dynamics were therefore reflected in a sharp increase in costs that were entirely absorbed by the Group and only partially passed on to end customers. This choice resulted in a strong benefit for the engagement of new consumenrs that are an added value also on the trend of this first trimester of 2023. The EBITDA2 seems growing by 9% to Euro 2.2 million with an EBITDA margin equal to 1.8%.

The Consolidated Report for the year ended 31 December 2022 is prepared by Farmaè in accordance with the IAS/IFRS principles issued by the International Accounting Standards Board (IASB) and the interpretations of the International Financial Reporting Standard Interpretation Committee (IFRS IC, formerly IFRIC) and the former Standing Interpretations Committee (SIC) (hereinafter referred to as "IAS/IFRS Principles"), endorsed by the European Union following the entry into force of Regulation (EC) No. 1606/2002 issued by the European Parliament and the European Council in July 2002.

2 EBITDA indicates the result before financial charges, taxes, depreciation of fixed assets and non-recurring income and charges.

Consolidated revenues Adj 2022 amounted to Euro 120,9 million, up 40.8% compared to the Euro 85.9 million Adj recorded at 31 December 2021, and include Euro 115 million (+42.2%) relating to the Consumer Area, in which the Farmaè, AmicaFarmacia, Farmaeurope, Sanort and Beautyè brands operate today, dedicated to e-retailing, and Euro 5.9 million (+ 18.3% YoY) pertaining to the Industrial Area and related to co-marketing revenues and the subsidiary Valnan in 2022.

Orders on platforms in 2022 grew by 40.0% to 2 million 384 thousand compared to 1 million 707 thousand recorded in 2021 by Farmaè alone, and by 15.3% compared to 2 million 68 thousand on a like-for-like basis as at 31 December 2021.

In 2022, 12 million 77 thousand products were sold, up 42.0% compared to 8 million 513 thousand products sold by Farmaè alone, and up 18.5% compared to 10 million 190 thousand at the end of 2021 on a like-for-like basis.

The Commercial Margin stood at Euro 38.4 million, up 37% from Euro 27.8 million in 2021, with an incidence on revenues of 31.7%, slightly lower than the previous year when it was 32.5%.

The EBITDA is equal to Euro 2.2 million, growing by 7% compared to the previous year.

Adj EBITDA, adjusted for costs related to the integration of Amicafarmacia post-acquisition, revamping of sites, non-recurring costs for acquisition activities and other non-recurring activities, totalling Euro 0.4 million, amounted to Euro 2.5 million compared to Euro 2.7 million in 2021. The incidence on turnover was 2.1% compared to 3.2% in the previous year, mainly due to inflation that led to an increase in the prices to buy the products and in operating costs (transport, energy, personnel) that the Company has chosen to pass only up to a point on the final consumers. Personnel costs totalled Euro 10.2 million and reflect the strengthening of the structure and the hiring of managerial figures for business development.

EBIT for the financial year 2022 substantially broke even at Euro -38,000 compared to Euro 307,000 for the financial year 2021, after depreciation and amortisation of Euro 2.2 million (EUR 1.7 million in 2021).

After financial expenses of about EUR 0.8 million, the Net Profit is a loss of EUR 0.9 million, compared to a loss of EUR 90 thousand in FY2021.

The change net working capital is positive for Euro 0.8 millions.

The Net Financial Debt of the Farmaè Group was Euro 21.3 million compared to Euro 14.1 million as of 31 December 2021 and Euro 19.7 million as of 30 June 2022 .

The Net Financial Debt as at 31 December 2022 changed compared to 31 December 2021 mainly in relation to the investments made in the period, linked both to the group's logistic strengthening projects and to the acquisition of the Farmaeurope.it domain, entailing significant development plans to ugrade the consumer strategy. The increase in working capital also has an impact, mainly due to the accrual of receivables from the tax authorities for VAT recoverable from 2023.

***

ECONOMIC AND FINANCIAL RESULTS OF THE PARENT COMPANY FARMAE

Farmaè revenues grew YoY by +40.1%, going from Euro 80.3 million in 2021 to Euro 112.5 million in 2022. Adjusted EBITDA amounted to Euro 2.2 million. The result closes with a loss of 1 million Euros. The Net Financial Debt amounted to Euro 20.6 million mainly in relation to the investments made in the period, linked both to the group's logistics expansion projects and to the acquisition made during the period of the