Modivo (MDV) Status Update summary

Strategic partnership and leadership changes

• Jamie Salter, CEO of Authentic Brands Group (ABG), joins the Supervisory Board and will chair the Strategy and Development Committee, signaling deeper strategic alignment and long-term cooperation between the two companies.

• ABG and CCC have signed 12 licenses, with 4 more in progress, and are committed to at least 10-year agreements, contingent on sales performance.

• Over 2 million units of Authentic Brands products sold by CCC Group in the first year of cooperation.

Business model evolution and performance

• CCC has integrated ABG brands, now representing 11% of sales, with Reebok alone nearing 10% and projected to become the third-largest brand in the portfolio.

• Reebok accounted for 9% of CCC's sales revenue in August 2024, a fivefold increase year-over-year.

• The licensing model enables CCC to achieve high intake margins (around 74% pre-discounts and fees) and access globally recognized brands, enhancing both sales velocity and average unit retail.

• August sales performance exceeded expectations, with strong inventory and sourcing improvements driving higher margins and a positive outlook for the upcoming quarter.

Global expansion and mutual learning

• ABG views CCC as a role model for converting private label to branded sales and is leveraging CCC’s expertise in sourcing, technology, and retail execution for global best practices.

• Both companies see significant potential for further growth in Central and Eastern Europe, with plans to expand store count and possibly enter new regions once the current market is fully developed.

• CCC’s technological investments and retail innovations are highlighted as benchmarks for other markets, with ABG considering the transfer of these practices to North America.

• Authentic's exposure in Central and Western Europe is enhanced through CCC, a market leader in the region.