Aeffe

Annual Report • Mar 12, 2019

AEFFE FY2018 Consolidated Financial Results Presentation 12th March 2019

FY 2018 Key Facts

• Consolidated Revenues +11.2% at € 346.6m, (+10.9% at current exchange rates)
• Consolidated EBITDA for € 43.3m, compared to an EBITDA of € 36.6m in 2017, with a €6.7m increase (+18.5%)
• Net Profit for the Group at €16.7m, compared to a Net Profit of € 11.5m in 2017, with a €5.2m increase (+46%)
• Consolidated Net Financial Debt of € 31.3m (€ 50.6m as of 31 December 2017), with a €19.3m improvement (-38.1%)
• 248 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 37% both in 2018 and in 2017

(2) Italy excluded

* At constant exchange rates

5

1Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q 3Q 4Q

Mono-brand Stores Network

	DOS
	FY18	FY17
Europe	44	44
America	2	3
Asia	18	16
Total	64	63

Franchising

	FY18	FY17
Europe	45	49
America	1	1
Asia	138	135
Total	184	185

7

Income Statement – FY 2018/2017

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

Summary Balance Sheet

	FY 18	FY 17
Net Working Capital	85,7	81,3
Net Tangible Assets	60,3	59,1
Net Intangible Assets	103,1	109,7
Net Financial Assets	2,9	3,7
Severance Staff, Provisions & Others	(23,3)	(24,8)
Net Capital Employed	228,7	229,0
Group Shareholders' Equity	164,6	146,1
Minorities	32,8	32,3
Shareholders' Equity & Minorities	197,4	178,4
Net Debt	25,8	45,1
Shares Buyback	5,5	5,5
Net Financial Debt and Shareholders' Equity	228,7	229,0
Accounts Receivables	43,1	42,1
Accounts Payables	(76,9)	(68,6)
Inventory	104,3	97,8
Operating NWC	70,5	71,3
As % of sales	20,3%	22,8%
Other Current Assets/Liabilities	15,2	10,0
Net Working Capital	85,7	81,3

(€m)

9

Summary Cash Flow

(€m)

	FY 18	FY 17
PBT	28,8	18,9
Operating Cash Flow	25,5	17,2
Capital Expenditure	(7,9)	(3,8)
Free Cash Flow	17,6	13,4
Cash Flows from Financing Activities	(12,4)	(5,1)
Cash and cash equivalents at the beginning of the year	22,8	14,5
Cash Flow of the Period	5,2	8,3
Cash and cash equivalents at the end of the year	28,0	22,8

APPENDICES

Income Statement – Full Year 2016-2018

(€m)

	2018A	2017A	2016A
Net Sales	346,6	312,6	280,7
% change	10,9%	11,4%	4,4%
Other Revenues	5,4	3,8	6,8
Total Revenues	352,0	316,4	287,5
% change	11,2%	10,1%	4,9%
Raw Materials Costs	(110,3)	(96,1)	(90,7)
Service Costs	(100,6)	(91,0)	(81,3)
Cost for use of third parties assets	(25,4)	(23,3)	(22,8)
Personnel	(68,5)	(65,3)	(63,5)
Other Operating Expenses	(3,9)	(4,1)	(4,0)
Total Operating Expenses	(308,7)	(279,8)	(262,3)
EBITDA	43,3	36,6	25,2
Margin (% of Net sales)	12,5%	11,7%	9,0%
Depreciation and Amortisation	(13,7)	(13,9)	(15,1)
EBIT	29,6	22,7	10,1
Margin (% of Net sales)	8,5%	7,3%	3,6%
Net Financial Income / (Expenses)	(0,9)	(3,7)	(1,8)
PBT	28,7	19,0	8,3
Margin (% of Net sales)	8,3%	6,1%	3,0%
Taxes	(11,6)	(7,4)	(4,0)
Net income before Minorities	17,1	11,5	4,4
Margin (% of Net sales)	4,9%	3,7%	1,6%
Minority Interests	(0,4)	(0,0)	(0,7)
Net Income for the Group	16,7	11,5	3,6
Margin (% of Net sales)	4,8%	3,7%	1,3%

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

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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.