Aeffe

Investor Presentation • May 14, 2019

AEFFE First Quarter 2019 Consolidated Financial Results Presentation 14th May 2019

1Q 2019 Key Facts

Consolidated Revenues +7.3% at € 102.2m, (+7.4% at current exchange rates);

Consolidated EBITDA net of IFRS 16 effect for € 22.2m (21.7% of sales), compared to an EBITDA of € 20.3m (21.4% of sales) in 1Q 2018, with a € 1.9m improvement (+9%)

Net Profit for the Group at € 11.8m, compared to a Net Profit of € 11.3m in 1Q 2018, with a €0.5m improvement (+4.3%)

Consolidated Financial Debt net of IFRS 16 effect of € 34.5m, compared to € 53.8m as of 31 March 2018, with a € 19.3m improvement (€ 31.3m as of 31 December 2018)

246 Mono Brand Stores

First-time application of the new Lease standard IFRS 16 from January 1st, 2019

Net Sales Breakdown by Division(1)

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

(2) Italy excluded 1Q

* At constant exchange rates

Net Sales Breakdown by Channel

6

Mono-brand Stores Network

		D O S
		Q 9 1 1	F Y 8 1
Eu ro	p e	4 3	4 4
Am	ica er	2	2
ia As		1 9	1 8
To ta	l	6 4	6 4

Franchising

	1 Q 1 9	F Y 1 8
Eu ro p e	4 5	4 5
Am ica er	1	1
As ia	1 3 6	1 3 8
To l ta	1 8 2	1 8 4

Income Statement – 1Q 2019/2018

(€m)

	1Q 19 n E ffe tto co	IFR S 1 6 e ffe ct	1Q 19 Eff ett se nz a o
	IFR S 1 6	( ) Se e N 1 ote	IFR S 1 6	1Q 18
Ne t Sa les	10 2, 2		10 2, 2	95 2 ,
% ha c ng e	4% 7,		4% 7,
Ot he r R ev en ue s	2, 8		2, 8	0, 9
To ta l R ev en ue s	10 5, 0		10 5, 0	96 1 ,
% ha c ng e	2% 9,		2% 9,
R M ia ls Co at sts aw er	( ) 30 1 ,		( ) 30 1 ,	( ) 26 6 ,
S ice C ts erv os	( ) 27 7 ,		( ) 27 7 ,	( ) 25 1 ,
C ts fo f t hir d p art ies os r u se o	( ) 2, 0	( ) 4, 5	( ) 6, 5	( ) 6, 5
P l ers on ne	( ) 8 17 ,		( ) 8 17 ,	( ) 9 16 ,
O he r O ing Ex t t p era p en ses	( ) 0, 8		( ) 0, 8	( ) 0, 7
To ta l O t ing Ex p era p en ses	( ) 78 4 ,		( ) 82 9 ,	( ) 75 8 ,
EB ITD A	26 6 ,	( ) 4, 5	22 2 ,	20 3 ,
( ) Ma in % f N les et rg o sa	26 0 % ,		21 7% ,	21 4% ,
De iat ion nd A rt isa t ion p rec a mo	( ) 6, 7	3, 7	( ) 3, 0	( ) 3, 0
EB IT	19 9 ,	( ) 8 0,	19 1 ,	17 3 ,
( ) Ma in % f N les et rg o sa	19 5 % ,		18 7% ,	18 2% ,
( ) Ne t F ina ia l In / Exp nc co me en ses	( ) 0, 8	0, 7	( ) 0, 1	( ) 0, 5
fit be for Pro e t ax es	19 1 ,	( ) 0, 1	19 0 ,	16 9 ,
( ) Ma in % f N les et rg o sa	18 7% ,		18 6 % ,	17 7% ,
Ta xe s	( ) 6, 2		( ) 6, 2	( ) 5, 1
inc / ( los ) be for ino rit ies Ne t e M om e s	12 9 ,	( ) 0, 1	12 8 ,	11 8 ,
( ) Ma in % f N les et rg o sa	12 % 6 ,		12 % 6 ,	12 4% ,
Mi rity In ter est no s	( ) 1, 1		( ) 1, 1	( ) 0, 5
/ ( ) Ne t In Lo for t he G co me ss rou p	11 8 ,	( ) 0, 1	11 8 ,	11 3 ,
( ) Ma in % f N les et rg o sa	% 11 6 ,		% 11 5 ,	9% 11 ,

Note 1: IFRS 16 effects on Profit & Loss statement:

Lease installments cancelled from Costs for use of third parties and posted for €3.7m as Amortisation of right of use assets and for € 0.7m as Financial charges linked to the financial debt for leasing.

Summary Balance Sheet

( €m )
	1Q 19	FY 18	1Q 18
Ne t W kin Ca ita l or g p	10 4, 0	85 7 ,	94 8 ,
Ne t T ibl As ts an g e se	60 1 ,	60 3 ,	58 5 ,
ibl Ne t In ta e A ts ng sse	78 7 ,	10 3, 1	10 8, 4
ibl fo ig hts f u RS (se ) Ne t In ta e A ts r R - IF 16 e N ot e 2 ng sse o se	13 1, 5
ina ial Ne t F A ts nc sse	2, 9	2, 9	3, 3
Se St aff vis ion O the Pro s & ve ran ce rs ,	( ) 22 1 ,	( ) 23 3 ,	( ) 20 9 ,
Ne t C ita l E loy ed ap mp	35 5, 2	22 8, 7	24 4, 1
Gr Sh ho lde rs' Eq uit ou p are y	8 17 2,	16 4, 6	15 7, 4
Mi riti no es	33 3 ,	32 8 ,	32 9 ,
Sh ho lde rs' Eq uit Mi riti & are y no es	20 6, 1	19 7, 4	19 0, 3
Ne t f ina ial D eb t nc	29 0 ,	25 8 ,	48 3 ,
(se ) Ne t f ina ial d eb t fo r L lia bil itie IFR S 1 6 e N e 2 ot nc ea se s -	11 4, 6
Sh s B ba ck are uy	5, 5	5, 5	5, 5
ina ial eb nd Sh eh old uit Ne t F D t a ' E nc ar ers q y	35 5, 2	22 8, 7	24 4, 1
Ac Re iva ble ts co un ce s	52 9 ,	43 1 ,	49 3 ,
Ac Pa ab les ts co un y	( ) 60 2 ,	( ) 76 9 ,	( ) 58 9 ,
Inv to en ry	10 1, 5	10 4, 3	97 8 ,
Op tin NW C era g	94 2 ,	70 5 ,	88 2 ,
As % f LT M les o sa	26 6% ,	20 3% ,	26 9% ,
/Li Ot he r C t A ts ab ilit ies urr en sse	9, 8	15 2 ,	6, 6
Ne t W kin Ca ita l or g p	10 4, 0	85 7 ,	94 8 ,

Note 2: IFRS 16 effects on Balance Sheet:

• Fixed Assets increase of €131.5m from the right to use the leased assets (including the reclassification of €23.0m relating to the key money previously recorded in "Intangible assets");

• Financial debt for Lease liabilities for €114.6m posted in Financial liabilities

Summary Cash Flow

(€m)

Q 9 1 1	F Y 8 1	Q 8 1 1
9, 1 1	2 8, 8	9 1 6,
2, 5	2 5, 5	1, 9
( ) 3, 2	( ) 7, 9	( ) 5, 1
( ) 0, 7	1 7, 6	( ) 3, 2
0, 6	( ) 1 2, 4	6, 3
2 8, 0	2 2, 8	2 2, 8
( ) 0, 1	5, 2	3, 1
2 7, 9	2 8, 0	2 5, 9

Appendices

Income Statement – Full Year 2016-2018

(€m)

	2 0 1 8 A	2 0 1 7 A	2 0 1 6 A
Ne Sa les t	3 4 6, 6	3 2, 1 6	2 8 0, 7
% ha c ng e	1 0, 9 %	1 1, 4 %	4, 4 %
O t he Re r ve nu es	5, 4	3, 8	6, 8
To l Re ta ve nu es	3 2, 0 5	3 1 6, 4	2 8 7, 5
% ha c ng e	1 1, 2 %	1 0, 1 %	4, 9 %
ia ls Co Ra Ma te ts w r s	( ) 1 1 0, 3	( ) 9 6, 1	( ) 9 0, 7
Se ice Co ts rv s	( ) 1 0 0, 6	( ) 9 1, 0	( ) 8 1, 3
Co fo f h ir d ies t t t ts s r u se o p ar a sse	( ) 2 5, 4	( ) 2 3, 3	( ) 2 2, 8
Pe l rso nn e	( ) 6 8, 5	( ) 6 5, 3	( ) 6 3, 5
O he Op ing t t Ex r er a p en se s	( ) 3, 9	( ) 4, 1	( ) 4, 0
To l Op ing Ex ta t er a p en se s	( ) 3 0 8, 7	( ) 2 7 9, 8	( ) 2 6 2, 3
E B I T D A	4 3, 3	3 6, 6	2 5, 2
( ) M in % f Ne les t s ar g o a	1 2, 5 %	1 1, 7 %	9, 0 %
De ia t io d Am t isa t io p re c n a n or n	( ) 1 3, 7	( ) 1 3, 9	( ) 1 5, 1
E B I T	2 9, 6	2 2, 7	0, 1 1
( ) in f les M % Ne t s ar g o a	8, % 5	3 % 7,	3, % 6
( ) Ne F ina ia l Inc / Ex t nc om e p en se s	( ) 0, 9	( ) 3, 7	( ) 1, 8
P B T	2 8, 7	1 9, 0	8, 3
( ) M in % f Ne les t s ar g o a	8, 3 %	6, 1 %	3, 0 %
Ta xe s	( ) 1 1, 6	( ) 7, 4	( ) 4, 0
Ne inc be fo M ino i ies t t om e re r	1 7, 1	1 1, 5	4, 4
( ) M in % f Ne les t s ar g o a	4, 9 %	3, 7 %	1, 6 %
M ino i ty In te ts r re s	( ) 0, 4	( ) 0, 0	( ) 0, 7
Gr Ne t Inc fo t he om e r ou p	1 6, 7	1 1, 5	3, 6
( ) in f les M % Ne t s ar g o a	8 % 4,	3, % 7	3 % 1,

Company Profile

Share Information

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.