Aeffe

Investor Presentation • Aug 5, 2020

AEFFE First Half 2020 Consolidated Financial Results Presentation 5th August 2020

Consolidated Revenues -31.4% ex forex at € 118.9m, (-31.4% at current exchange rates) due to Covid-19 pandemic effects;

Consolidated EBITDA at € 0.6m (0.5% of sales), compared to an EBITDA of € 26.7m (15.4% of sales) in 1H 2019

Net Loss for the Group at € 10.9m, compared to a Net Profit of € 5.1m in 1H 2019

Consolidated Financial Debt net of IFRS 16 effect of € 62.5m, compared to € 39.4m as of 31 December 2019, with a € 23.1m increase (€ 36.6m as of 30 June 2019)

212 Mono Brand Stores

Net Sales Breakdown by Division(1)

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

(1) ITALY sales incidence on total revenues ADJUSTED by foreign customers effect and royalties income is estimated equal to 36% both in 1H 2020 and in 1H 2019

(2) Italy excluded

* At constant exchange rates

2Q

1Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q

Mono-brand Stores Network

	DOS
	1H20	FY19
Europe	42	42
America	1	3
Asia	16	16
Total	59	61

Franchising

	1H20	FY19
Europe	40	40
America		1
Asia	113	122
Total	153	163

Income Statement – 1H 2020/2019

(€m)

	1H 20	1H 19
Net Sales	118,9	173,3
% change	(31,4%)
Other Revenues	4,7	4,3
Total Revenues	123,5	177,6
% change	(30,4%)
Raw Materials Costs	(42,0)	(55,4)
Service Costs	(45,4)	(53,7)
Costs for use of third parties	(2,7)	(4,2)
Personnel	(29,5)	(35,9)
Other Operating Expenses	(3,3)	(1,7)
Total Operating Expenses	(123,0)	(150,9)
EBITDA	0,6	26,7
Margin (% of Net sales)	0,5%	15,4%
Depreciation and Amortisation	(13,4)	(13,5)
EBIT	(12,8)	13,2
Margin (% of Net sales)	(10,8%)	7,6%
Net Financial Income / (Expenses)	(1,3)	(1,7)
Profit before taxes	(14,1)	11,5
Margin (% of Net sales)	(11,9%)	6,7%
Taxes	1,7	(6,3)
Net income/(loss) before Minorities	(12,5)	5,3
Margin (% of Net sales)	(10,5%)	3,0%
Minority Interests	1,6	(0,2)
Net Income/(Loss) for the Group	(10,9)	5,1
Margin (% of Net sales)	(9,2%)	3,0%

Summary Balance Sheet

	1H 20	FY 19	1H 19
Net Working Capital	117,5	107,2	98,6
Net Tangible Assets	63,1	62,8	60,0
Net Intangible Assets	74,2	76,1	77,8
Net Intangible Assets for Rights of use	102,0	110,7	126,8
Net Financial Assets	2,8	2,9	3,2
Severance Staff, Provisions & Others	(17,9)	(20,3)	(21,1)
Net Capital Employed	341,6	339,3	345,4
Group Shareholders' Equity	159,9	171,4	165,9
Minorities	31,1	32,7	32,4
Shareholders' Equity & Minorities	191,0	204,1	198,3
Net financial Debt excluding IFRS 16	62,5	39,4	36,6
Net financial debt for Lease liabilities	88,1	95,8	110,6
Net Financial Debt and Shareholders' Equity	341,6	339,3	345,5
Accounts Receivables	37,7	41,5	42,3
Accounts Payables	(70,0)	(74,3)	(67,2)
Inventory	122,7	112,1	110,6
Operating NWC	90,4	79,3	85,7
As % of LTM sales	30,5%	22,6%	24,6%
Other Current Assets/Liabilities	27,1	27,9	12,9
Net Working Capital	117,5	107,2	98,6

(€m)

Summary Cash Flow

	1H 20	FY 19	1H 19
PBT	(14,1)	21,8	11,5
Operating Cash Flow	(10,6)	19,2	6,8
Capital Expenditure	(3,6)	(9,7)	(2,3)
Capital Expenditure for Rights of use	0,7	(1,1)	(1,8)
Free Cash Flow	(13,5)	8,5	4,5
Cash Flows from Financing Activities	13,1	(8,1)	(1,4)
Cash and cash equivalents at the beginning of the year	28,4	28,0	28,0
Cash Flow of the Period	(0,4)	0,4	1,4
Cash and cash equivalents at the end of the year	28,0	28,4	29,4

Appendices

Income Statement – Full Year 2017-2019

(€m)

	FY 19 net of IFRS 16 effects	2018A	2017A
Net Sales	351,4	346,6	312,6
% change	1,7%	10,9%	11,4%
Other Revenues	10,1	5,4	3,8
Total Revenues	361,5	352,0	316,4
% change	2,8%	11,2%	10,1%
Raw Materials Costs	(115,3)	(110,3)	(96,1)
Service Costs	(108,3)	(100,6)	(91,0)
Cost for use of third parties assets	(25,6)	(25,4)	(23,3)
Personnel	(72,4)	(68,5)	(65,3)
Other Operating Expenses	(3,3)	(3,9)	(4,1)
Total Operating Expenses	(324,9)	(308,7)	(279,8)
EBITDA	36,6	43,3	36,6
Margin (% of Net sales)	10,4%	12,5%	11,7%
Depreciation and Amortisation	(13,0)	(13,7)	(13,9)
EBIT	23,6	29,6	22,7
Margin (% of Net sales)	6,7%	8,5%	7,3%
Net Financial Income / (Expenses)	(1,0)	(0,9)	(3,7)
PBT	22,7	28,7	19,0
Margin (% of Net sales)	6,4%	8,3%	6,1%
Taxes	(10,0)	(11,6)	(7,4)
Net income before Minorities	12,6	17,1	11,5
Margin (% of Net sales)	3,6%	4,9%	3,7%
Minority Interests	(0,3)	(0,4)	(0,0)
Net Income for the Group	12,3	16,7	11,5
Margin (% of Net sales)	3,5%	4,8%	3,7%

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

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.