Aeffe

Investor Presentation • Mar 18, 2021

AEFFE FY 2020 Consolidated Financial Results Presentation 18th March 2021

Consolidated Revenues -23.3% ex forex at € 269.1m, (-23.4% at current exchange rates) due to Covid-19 pandemic effects

Consolidated EBITDA adjusted at € 8.5m (3.2% of sales), net of € 4.0m extraordinary inventory write-down due to the pandemic impact, compared to an EBITDA of € 53.1m (15.1% of sales) in 2019. Consolidated EBITDA reported at € 4.5m

Net Loss adjusted for the Group at € 16.3m, net of non-recurring costs of € 5.1m, compared to a Net Profit of € 11.7m in 2019. Net Loss reported for the Group at € 21.4m

Consolidated Financial Debt of € 141.0m compared to € 135.2m at the end of 2019. Net of capex and repurchase of treasury shares Cash flow of 2020 positive for roughly € 1.0m. Consolidated financial debt net of IFRS 16 effect of € 52.8m.

203 Mono Brand Stores

Net Sales Breakdown by Division(1)

3

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

⁽¹⁾ Italy excluded

(*) At constant exchange rates

1Q 2Q 3Q 4Q

Net Sales Breakdown by Channel

1Q 2Q 3Q 4Q

Mono-brand Stores Network

DOS
	FY20	FY19
Europe	42	42
America	1	3
Asia	16	16
Total	59	61

Franchising

	FY20	FY19
Europe	40	40
America	0	1
Asia	104	122
Total	144	163

Income Statement – FY 2020/2019

(€m)

	2020A	2019A
Net Sales	269,1	351,4
% change	(23,4%)
Other Revenues	10,5	10,1
Total Revenues	279,6	361,5
% change	(22,6%)
Raw Materials Costs	(107,8)	(115,3)
Service Costs	(93,2)	(108,3)
Costs for use of third parties	(6,6)	(9,0)
Personnel	(61,8)	(72,4)
Other Operating Expenses	(5,7)	(3,3)
Total Operating Expenses	(275,1)	(308,3)
EBITDA	4,5	53,1
Margin (% of Net sales)	1,7%	15,1%
Depreciation and Amortisation	(29,1)	(28,0)
EBIT	(24,6)	25,1
Margin (% of Net sales)	na	7,1%
Net Financial Income / (Expenses)	(3,0)	(3,3)
Profit before taxes	(27,6)	21,8
Margin (% of Net sales)	na	6,2%
Taxes	4,2	(9,8)
Net income/(loss) before Minorities	(23,4)	12,0
Margin (% of Net sales)	nba	3,4%
Minority Interests	2,0	(0,3)
Net Income/(Loss) for the Group	(21,4)	11,7
Margin (% of Net sales)	na	3,3%

Summary Balance Sheet

(€m)		FY 20	FY 19
	Net Working Capital	97,3	107,2
	Net Tangible Assets	61,7	62,8
	Net Intangible Assets	72,5	76,1
	Net Intangible Assets for Rights of use - IFRS 16	100,5	110,7
	Net Financial Assets	2,7	2,9
	Severance Staff, Provisions & Others	(14,9)	(20,3)
	Net Capital Employed	319,7	339,3
	Group Shareholders' Equity	148,2	171,4
	Minorities	30,5	32,7
	Shareholders' Equity & Minorities	178,8	204,1
	Net financial Debt	52,8	39,4
	Net financial debt for Lease liabilities - IFRS 16	88,2	95,8
	Net Financial Debt and Shareholders' Equity	319,7	339,3
	Accounts Receivables	39,1	41,5
	Accounts Payables	109,3	(74,3)
	Inventory	(69,3)	112,1
	Operating NWC	79,1	79,3
	As % of sales	36,2%	30,5%
	Other Current Assets/Liabilities	18,3	27,9
	Net Working Capital	97,3	107,2

Summary Cash Flow

(€m)

	FY 20	FY 19
PBT	(27,6)	21,8
Operating Cash Flow	10,3	19,2
Capital Expenditure	(5,4)	(9,7)
Capital Expenditure for Rights of use - IFRS 16	(6,6)	(1,1)
Free Cash Flow	(1,8)	8,5
Cash Flows from Financing Activities	13,2	(8,1)
Cash and cash equivalents at the beginning of the year	28,4	28,0
Cash Flow of the Period	11,4	0,4
Cash and cash equivalents at the end of the year	39,8	28,4

Appendices

Income Statement – Full Year 2018-2020

(€m)		2020A	2019A
	Net Sales	269,1	351,4
	% change	(23,4%)
	Other Revenues	10,5	10,1
	Total Revenues	279,6	361,5
	% change	(22,6%)
	Raw Materials Costs	(107,8)	(115,3)
	Service Costs	(93,2)	(108,3)
	Costs for use of third parties	(6,6)	(9,0)
	Personnel	(61,8)	(72,4)
	Other Operating Expenses	(5,7)	(3,3)
	Total Operating Expenses	(275,1)	(308,3)
	EBITDA	4,5	53,1
	Margin (% of Net sales)	1,7%	15,1%
	Depreciation and Amortisation	(29,1)	(28,0)
	EBIT	(24,6)	25,1
	Margin (% of Net sales)	na	7,1%
	Net Financial Income / (Expenses)	(3,0)	(3,3)
	Profit before taxes	(27,6)	21,8
	Margin (% of Net sales)	na	6,2%
	Taxes	4,2	(9,8)
	Net income/(loss) before Minorities	(23,4)	12,0
	Margin (% of Net sales)	nba	3,4%
	Minority Interests	2,0	(0,3)
	Net Income/(Loss) for the Group	(21,4)	11,7
	Margin (% of Net sales)	na	3,3%

Company Profile

Share Information Investor Relations

• N° of shares outstanding: 107,362,504
• Italian Stock Exchange STAR Segment

Specialist: Mediobanca S.p.A.

Tickers: AEF IM (Bloomberg) AEF MI (Reuters), AEF (Borsa Italiana)

• Investor Relations
• AEFFE S.p.A
• Annalisa Aldrovandi
• +39 0541 965494
• annalisa.aldrovandi@aeffe.com

www.aeffe.com

Fratelli Ferretti Holding 61%

Aeffe 7%

Market 32%

Disclaimer

This presentation is being furnished to you solely for your information on a confidential basis and may not be reproduced or redistributed to any other person.

This presentation does not constitute or form part of any offer to sell or invitation to purchase or subscribe for, or otherwise acquire or dispose of any Aeffe S.p.A. securities.

This presentation includes forward-looking statements which are based on the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are subject to risks and uncertainties. In light of these risks and uncertainties, the events described in such forward-looking statements may not occur and any targets or projections may differ materially from those expressed in or implied by these statements due to any number of different factors.

You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the dater of this presentation. Aeffe S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.

Any reference to past performance or trends or activities of Aeffe Group shall not be taken as a representation or indication that such performance, trends or activities will continue in the future.