FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES 1 ANNUAL REPORT 2020 2 FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES The Fielmann Group is a listed family business with headquarters in Hamburg, providing fashionable eyewear, contact lenses, and hearing aids at the best prices. The company serves its 27 million customers in 15 European countries through an omnichannel busi- ness model. Our success is based on our customer-friendly phi- losophy, which is embodied by our committed and highly skilled employees. With our Vision 2025, we will take our philosophy into the future and shape the optical industry in Europe for the benefit of consumers – without compromising on quality. FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES 1 Key Figures 2020 2019 2018 2017 2016 Sales in € m External sales 1) incl. VAT 1,630.1 1,764.6 1,650.7 1,606.2 1,549.8 Change % –7. 6 +6.9 +2.8 +3.6 +2.7 Consolidated sales excl. VAT 1428.9 1520.7 1428.0 1386.0 1337.2 Change % –6.0 +6.5 +3.0 +3.6 +2.9 Unit sales (glasses) in 000s 7,264 8,277 8,154 8,113 7,990 Change % –12.2 +1.5 +0.5 +1.5 +2.3 EBITDA² in € m 336.7 384.7 295.9 291.3 281.6 Change % –12.5 +30.0 +1.6 +3.4 +1.1 Pre-tax profit (EBT) in € m 175.5 253.8 250.9 248.6 241.5 Change % –30.9 +1.2 +0.9 +3.0 +0.6 Net income in € m 120.8 177.3 173.6 172.9 171.2 Change % –31.9 +2.1 +0.4 +1.0 +0.4 Cash flow from current business activity 2) in € m 278.5 301.8 193.0 287.1 219.2 Change % –7. 7 +56.4 –32.8 +31.0 +36.5 Financial assets in € m 241.4 267.6 312.3 350.1 368.1 Change % –9.8 –14.3 –10.8 –4.9 +3.2 Equity ratio 2 % 50.1 53.2 75.1 75.1 75.1 Investments in € m 350.6 116.6 82.1 68.8 49.6 Change % +200.7 +42.0 +19.3 +38.7 –6.9 Number of stores 870 776 736 723 704 Employees as at 31.12. 21,853 20,397 19,379 18,522 17,873 of which apprentices 4,516 4,268 3,853 3,417 3,190 Key data per share Earnings € 1.39 2.05 2.01 2.00 1.98 Cash flow 2 € 3.32 3.59 2.30 3.42 2.61 Dividend per share € 1.20 – 1.90 1.85 1.80 1 Sales including VAT and inventory changes 2 The increase in 2019 results, among other things, from the first-time application of IFRS 16 2 FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES Financial calendar Q1 report 29 April 2021 Annual General Meeting 8 July 2021 Half-year report 26 August 2021 Analyst conference 27 August 2021 Q3 report 11 November 2021 Preliminary figures 2021 February 2022 Bloomberg code FIE Reuters code FIEG.DE Securities ID number/ISIN DE0005772206 This report is published in both English and German. In case of doubt, the German ver- sion is binding. To facilitate reading, only the masculine form is used in this document; all references to the male gender shall be deemed and construed to include any gender. The Annual Accounts for Fielmann Aktiengesellschaft are also available on request. FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES 3 Contents 4 Foreword 11 Management Board 12 Supervisory Board 20 Strategy 38 Shares 40 Industry 50 Consolidated accounts for the financial year 2020 52 Group Management Report for the financial year 2020 88 Consolidated balance sheet as at 31 December 2020 90 Consolidated profit and loss statement for the period from 1 January to 31 December 2020 91 Statement on the overall result 92 Movement in Group equity 94 Cash flow statement for the Fielmann Group 95 Segment reporting for the Fielmann Group 96 Notes to the consolidated accounts for financial year 2020 96 General information 97 Application of new and amended standards 98 Key accounting and valuation principles 112 Notes to the consolidated accounts 157 Information on related parties (IAS 24) 160 Other information 164 Statement of holdings and scope of consolidation as at 31 December 2020 177 Auditor‘s report 190 Fielmann stores 4 FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES Dear Shareholders, Dear Friends of the Company, Thanks to our robust business model and the outstanding work of our employees, we have maintained or expanded our market shares in all the relevant markets in the crisis year of 2020. We sold 7.26 million pairs of glasses (previous year: 8.28 million). External sales in- cluding VAT amounted to € 1.63 billion (previous year: € 1.76 billion) and consolidated sales stood at € 1.43 billion (previous year: € 1.52 billion). Pre-tax profits amounted to € 175.5 million in the last financial year (previous year: € 253.8 million). The decreases were influenced by the protective measures taken in response to the coronavirus pandemic, which led to large sections of retail being temporarily closed down. The disproportionate decline in the Fielmann Group’s unit sales (–12% on the previous year) – compared to the sales revenue (–8% on the previous year) – can largely be explained by a significant decrease in prescription sunglasses which we mainly sell from March to June. The positive development of the hearing aid sales (+13% on the previous year) and the growing share of progressive glasses have addi- tionally boosted the sales development. As a responsible family business, Fielmann acted early and decidedly to protect the health of our customers and employees alike. Together with Prof Dr Martin Exner, one of the leading infectiologists in Germany, we identified the biggest risks in optical and hearing aid retail as well as appropriate measures to counter them. The result was a scientifically based hygiene concept that we implemented across Europe. A scientific analysis of the infection rates at the end of the year confirmed the effectiveness of © Fielmann © Marc Fielmann, Chief Executive Officer FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES 5 our protective measures in the form of an assessment report: the infection levels at our stores were considerably below the general infection rate in Germany. In future, Fiel- mann will continuously conduct scientific tests on its hygiene concept and develop it even further in order to guarantee the protection of customers and employees. Further information is available at fielmann.de/coronavirus. The consistent application of these hygiene standards ensured that we took responsi- bility for the health of our customers and employees alike. At the same time, we guar- anteed our employees’ jobs, voluntarily supplemented the net earnings of employees in short-time work to 100%, secured the liquidity and reduced our costs considerably. Fielmann not only assumed responsibility for its customers and employees, but also for society in general: at the beginning of the crisis, Fielmann began to develop and produce protective glasses to help overcome the coronavirus pandemic. Besides masks, protective glasses are a key component of protective equipment for doctors and medical workers. Fielmann donated the first 20,000 protective glasses to over 300 hospitals and other medical centres in Germany immediately after the approvals were issued. And Fielmann helped in other countries too: We donated thousands of protective glasses to the Red Cross in Italy We took responsibility for and a further 1,000 glasses to hospitals and medical centres there. At the same time, the the health of our custom- Fielmann family made use of Fielmann AG’s ers and employees from an supply chain to purchase 3 million urgently needed surgical masks. 1 million of these early stage. protective masks were donated to each of the federal states of Brandenburg, Ham- burg, and Schleswig-Holstein. This social commitment was praised by political repre- sentatives when the masks were handed out in Kiel, Hamburg, and Rathenow. As a systemically-relevant healthcare provider, Fielmann, along with pharmacies and other healthcare providers, was able to maintain business operations in compliance with strict hygiene regulations. This applied to all European markets with the excep- tion of Slovenia – due to the closure of all shopping centers. Our business model has proven to be robust, despite a considerable decrease in footfall in the pedestrian zones. We have been able to maintain our market shares in all relevant markets, and even increased them in some. This development is explained by customer behaviour during the coronavi- rus pandemic and confirms our digitisation strategy: the future belongs to the omnichannel business model – the connection of personal service and digital tech- nologies. In the crisis year of 2020, the shift towards e-commerce in the contact lens segment accelerated even further: The latest figures from the Central Association of 6 FOREWORD MANAGEMENT BOARD SUPERVISORY BOARD STRATEGY SHARES INDUSTRY MANAGEMENT REPORT ANNUAL ACCOUNTS NOTES TO THE ACCOUNTS AUDITOR’S REPORT STORES Opticians (ZVA) indicate that the e-commerce sales share has risen to a new record level (42%).