Aeffe

Investor Presentation • Jul 27, 2018

AEFFE First Half 2018 Consolidated Financial Results Presentation 27h July 2018

1H 2018 Key Facts

Consolidated Revenues +15.0% at €171.1m, (+14.1% at current exchange rates)

• Consolidated EBITDA for €21m, compared to an EBITDA of € 15.5m in 1H 2017, with a €5.5m increase (+35.3%)
• Net Profit for the Group at €8.3m, compared to a Net Profit of €4.6m in 1H 2017, with a €3.7m improvement (+79.2%)
• Consolidated Net Financial Debt of € 40.9m, compared to € 67.1m in 1H 2017 (€ 50.6m as of 31 December 2017) with a €26.2m improvement
• 253 Mono Brand Stores

Net Sales Breakdown by Division(1)

(1) Before inter-divisional eliminations

3

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

(1) Italy and Russia excluded

1Q * At constant exchange rates

2Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q

Mono-brand Stores Network

	DOS
	1H18	FY17
Europe	44	44
America	2	3
Asia	18	16
Total	64	63

Franchising
	1H18	FY17
Europe	47	49
America	1	1
Asia	141	135
Total	189	185

7

Income Statement – 1H 2018/2017

	1H 18	1H 17
Net Sales	171,1	150,0
% change	14,1%
Other Revenues	2,3	1,4
Total Revenues	173,4	151,3
% change	14,6%
Raw Materials Costs	(54,9)	(47,3)
Service Costs	(49,3)	(42,6)
Costs for use of third parties	(12,6)	(11,5)
Personnel	(33,8)	(32,4)
Other Operating Expenses	(1,8)	(2,0)
Total Operating Expenses	(152,4)	(135,8)
EBITDA	21,0	15,5
Margin (% of Net sales)	12,3%	10,3%
Depreciation and Amortisation	(6,4)	(5,9)
EBIT	14,5	9,6
Margin (% of Net sales)	8,5%	6,4%
Net Financial Income / (Expenses)	(0,6)	(2,2)
Profit before taxes	13,9	7,4
Margin (% of Net sales)	8,1%	4,9%
Taxes	(5,5)	(2,8)
Net income before Minorities	8,4	4,5
Margin (% of Net sales)	4,9%	3,0%
Minority Interests	(0,1)	0,1
Net Income for the Group	8,3	4,6
Margin (% of Net sales)	4,9%	3,1%

Balance Sheet

	1H 18	FY 17	1H 17
Net Working Capital	83,9	81,3	88,4
Net Tangible Assets	58,7	59,1	60,1
Net Intangible Assets	106,5	109,7	112,5
Net Financial Assets	3,0	3,7	3,5
Severance Staff, Provisions & Others	(23,5)	(24,8)	(25,3)
Net Capital Employed	228,6	229,0	239,1
Group Shareholders' Equity	155,3	146,1	139,7
Minorities	32,4	32,3	32,2
Shareholders' Equity & Minorities	187,7	178,4	171,9
Net Debt	35,4	45,1	61,6
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	228,6	229,0	239,1
Accounts Receivables	44,0	42,1	40,7
Accounts Payables	(64,7)	(68,6)	(54,9)
Inventory	97,7	97,8	91,3
Operating NWC	77,1	71,3	77,1
As % of LTM sales	23,1%	22,8%	26,3%
Other Current Assets/Liabilities	6,8	10,0	11,3
Net Working Capital	83,9	81,3	88,4

Summary Cash Flow

(€m)
	1H 18	FY 17	1H 17
PBT	13,9	18,9	7,4
Operating Cash Flow	11,5	17,2	(3,5)
Capital Expenditure	(2,8)	(3,8)	(1,9)
Free Cash Flow	8,7	13,4	(5,4)
Cash Flows from Financing Activities	(9,4)	(5,1)	0,6
Cash and cash equivalents at the beginning of the year	22,8	14,5	14,5
Cash Flow of the Period	(0,7)	8,3	(4,7)
Cash and cash equivalents at the end of the year	22,1	22,8	9,8

Appendices

Income Statement – Full Year 2015-2017

	2017A	2016A	2015A
Net Sales	312,6	280,7	268,8
% change	11,4%	4,4%	6,9%
Other Revenues	3,8	6,8	5,2
Total Revenues	316,4	287,5	274,0
% change	10,1%	4,9%	20,1%
Raw Materials Costs	(96,1)	(90,7)	(86,2)
Service Costs	(91,0)	(81,3)	(79,2)
Cost for use of third parties assets	(23,3)	(22,8)	(23,5)
Personnel	(65,3)	(63,5)	(61,1)
Other Operating Expenses	(4,1)	(4,0)	(4,7)
Total Operating Expenses	(279,8)	(262,3)	(254,7)
EBITDA	36,6	25,2	19,3
Margin (% of Net sales)	11,7%	9,0%	7,2%
Depreciation and Amortisation	(13,9)	(15,1)	(13,5)
EBIT	22,7	10,1	5,9
Margin (% of Net sales)	7,3%	3,6%	2,2%
Net Financial Income / (Expenses)	(3,7)	(1,8)	(3,0)
PBT	19,0	8,3	2,9
Margin (% of Net sales)	6,1%	3,0%	1,1%
Taxes	(7,4)	(4,0)	(1,1)
Net income before Minorities	11,5	4,4	1,70
Margin (% of Net sales)	3,7%	1,6%	0,6%
Minority Interests	(0,0)	(0,7)	(0,2)
Net Income for the Group	11,5	3,6	1,5
Margin (% of Net sales)	3,7%	1,3%	0,6%

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.