CABASSE: Half-year results 2023 – 09/25/2023 at 6:00 p.m.

• Turnover down to €4.0 million in line with expectations

• Gross margin of 40%, similar to the entire 2022 financial year

• EBITDA of -€0.8 million as of June 30, 2023 and operating cash flow of -€1.0 million stabilized

Outlook 2023

• Degraded economic environment, marked by a slowdown in sales
  
  in the
  
  retail
  
  and careful stock management by distributors

• Abandonment of the annual growth objective for the entire financial year

• Significant improvement in the gross margin rate in 2
  
  ^n/a
  
  semester,
  
  and more widely in 2023

Plouzané, September 25, 2023 – 6:00 p.m. –

Cabasse (Euronext Growth® Paris – FR001400DIY6 – ALCAB)

a French luxury high-fidelity audio company, publishes its 2023 half-year accounts, approved by the Board of Directors on September 25, 2023.

1

EBITDA is defined by operating profit, excluding depreciation of fixed assets and including the research tax credit (CIR).

HALF-YEAR TURNOVER OF €4.0 MILLION

At the end of 1

^er

half of its 2023 financial year, Cabasse recorded a consolidated turnover of €4.0 million, down -15% in accordance with expectations, penalized by

(i)

difficulties in supplying key electronic components at the start of the financial year and

(ii)

a slowdown in sales in the

retail

under the effect of less dynamic consumption in Europe and Asia and careful management of stocks in stores.

GROSS MARGIN RATE OF 39.7% AT 1

^ER

SEMESTER 2023

At 1

^er

half-year 2023, Cabasse achieved a gross margin of €1.6 million.

The gross margin rate stood at 39.7% over the period, compared to 42.8% a year earlier, due to the persistence at the start of the year of additional costs linked to difficulties in sourcing components.

The gross margin rate is nevertheless stable compared to the level of the entire 2022 financial year (40.0%).

EBITDA OF -€0.8 MILLION AT THE END OF JUNE 2023

At mid-year, EBITDA stood at -€0.8 million, compared to -€0.1 million a year earlier.

This decline is linked for ~€0.4 million to the change in the gross margin and for ~€0.3 million to the increase in operating expenses, with the increase in general and administrative expenses linked to the stock market listing of Cabasse since the end of 2022, and with the ramp-up of the manufacturing workshops in Brest (France) in order to support the production of high-end speakers, including the product produced for a large luxury house.

Depreciation charges for fixed assets stood at €0.3 million, down slightly compared to 1

^er

half-year 2022, marking the start of the reduction in allocations after a peak in depreciation in 2022, relating to the development costs of the entire THE PEARL range started 5 years previously.

Operating profit stood at -€1.2 million on 1

^er

half-year 2023, compared to -€0.5 million a year earlier.

After financial income, mainly composed of interest charges on bank and bond debt, and exceptional income, the net income amounted to -€1.3 million on 1

^er

half-year 2023, compared to -€0.5 million.

BALANCE SITUATION AS OF JUNE 30, 2023

At the end of the first six months of its financial year, Cabasse consumed -€2.9 million in cash, including:

• -1.0 M€ operating cash flow
  
  (vs. -€1.1 million at 1
  
  ^er
  
  half-year 2022), with a stabilized working capital requirement (-€57,000 variation in WCR as of 1
  
  ^er
  
  half-year 2023 compared to -€893 thousand in 1
  
  ^er
  
  half-year 2022) which benefited from advance payments on orders;

• -0.5 M€ of investment flows
  
  (vs. -0.3 M€ at 1
  
  ^er
  
  half-year 2022), with an increase in investment expenditure over the half-year dedicated to the development of new products, including that as part of the agreement with a large luxury house;

• -€1.4 million in financing flows
  
  (vs. +€0.2 million at 1
  
  ^er
  
  half-year 2022), consisting of the reimbursement of the current account of the parent company (VEOM Group) and the financial reduction of the company’s debt.

As of June 30, 2023, shareholders’ equity

[1]

of Cabasse amounted to €2.2 million and available cash to €1.0 million.

Financial debts stood at €4.3 million at the end of June 2023 (compared to €4.6 million at the end of 2022).

At mid-year, the net financial debt thus amounted to €3.3 million, compared to €0.6 million as of December 31, 2022.

CONFIRMED IMPROVEMENT IN GROSS MARGIN IN 2023

Cabasse is currently suffering from a marked slowdown in sales in the

retail

taking into account a degraded economic environment and prudent inventory management by distributors.

In this adverse context, Cabasse decided to shift to 1

^er

half-year 2024 the launch of two major new products aimed at expanding the range

Luxury Wireless Audio

initially planned for 4

^th

quarter 2023.

The 2

^n/a

half-year will however be marked by the ramp-up of deliveries, which started on 3

^th

quarter 2023, as part of the agreement with a large luxury house.

Ultimately, the objective of annual growth in turnover over the entire 2023 financial year cannot be achieved, given the current slowdown in sales in the

retail

.

Cabasse, however, reiterates its objective of a significant improvement in its gross margin rate in 2

^n/a

half-year, and more broadly over the entire 2023 financial year (reminder: 40.0% in 2022), driven by the products in the range

Luxury Wireless Audio

deliveries for a large luxury house and supply costs now normalized in 2

^n/a

semester.

FINANCIAL AGENDA 2023

These dates are given for information purposes only, they may be modified if necessary. Publications will take place after the close of Euronext markets.

^[1]

Equity corresponds to equity to which is added the amount of convertible bonds (quasi-equity) for €2,512 thousand as of December 31, 2022 and €2,562 thousand as of June 30, 2023.

^[2]

Equity corresponds to equity to which is added the amount of convertible bonds (quasi-equity) for €2,512 thousand as of December 31, 2022 and €2,562 thousand as of June 30, 2023.

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