Aeffe

Investor Presentation • May 11, 2017

AEFFE First Quarter 2017 Consolidated Results Presentation 11th May 2017

1Q 2017 Key Facts

Consolidated Revenues +4.4% at € 79.6m, (+4.1% at constant exchange rates); Consolidated EBITDA for € 15.4m (19.4% of sales), compared to an EBITDA of € 13.9m (18.3% of sales) in 1Q 2016, with a € 1.5m improvement (+11%)

Net Profit for the Group at € 8.1m, compared to a Net Profit of € 5.8m in 1Q 2016, with a €2.3m improvement (+41%) Consolidated Net Financial Debt of € 64.4m, compared to € 87.2m as of 31 March 2016, with a € 22.8m improvement (€ 59.5m as of 31 December 2016) 239 Mono Brand Stores

Net Sales Breakdown by Division(1)

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

38,3 18 2,6 5,9 14,8 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 Italy Europe Russia USA RoW % on Total Sales Italy Europe Russia USA RoW 1Q 2017 1Q 2016 % on Total Sales (€m) (€m) (1) Italy and Russia excluded +15.9% * +1.2% * +9.1% * (14.5)% * (9.6)% * (1) (1)

33,1 17,9 2,3 6,7 16,2 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 Italy Europe Russia USA RoW Italy Europe Russia USA RoW 23% 19% 3% 48% 7% 24% 21% 3% 43% 9%

* At constant exchange rates

Net Sales Breakdown by Channel

* At constant exchange rates

Mono-brand Stores Network

	Mono-brand Stores Network
	DOS
Europe	1Q17 46	FY16 45
America	3	3
Asia	15	16
Total	64	64
	Franchising
	1Q17	FY16
Europe	48	50
America	1	2
Asia	126	139

Franchising

Income Statement – 1Q 2017/2016

(€m)

	1Q 17	1Q 16
Net Sales	79,6	76,2
% change	4,4%
Other Revenues	1,8	1,2
Total Revenues	81,4	77,4
% change	5,2%
Raw Materials Costs	(21,7)	(20,9)
Service Costs	(21,1)	(19,1)
Costs for use of third parties	(5,9)	(6,1)
Personnel	(16,1)	(15,8)
Other Operating Expenses	(1,2)	(1,5)
Total Operating Expenses	(66,0)	(63,5)
EBITDA	15,4	13,9
Margin (% of Net sales)	19,4%	18,3%
Depreciation and Amortisation	(2,9)	(3,0)
EBIT	12,5	10,9
Margin (% of Net sales)	15,7%	14,3%
Net Financial Income / (Expenses)	(0,3)	(0,9)
Profit before taxes	12,2	10,0
Margin (% of Net sales)	15,4%	13,1%
Taxes	(3,5)	(3,7)
Net income/(loss) before Minorities	8,7	6,3
Margin (% of Net sales)	10,9%	8,3%
Minority Interests	(0,6)	(0,5)
Net Income/(Loss) for the Group	8,1	5,8
Margin (% of Net sales)	10,2%	7,6%

Balance Sheet

Balance Sheet
	1Q 17	FY 16	1Q 16
Net Working Capital	88,6	73,1	97,2
Net Tangible Assets	60,8	61,4	62,4
Net Intangible Assets	113,8	115,1	121,4
Net Financial Assets	3,9	4,1	4,4
Severance Staff, Provisions & Others	(26,3)	(26,1)	(42,9)
Net Capital Employed	240,8	227,6	242,5
Group Shareholders' Equity	143,5	135,8	136,9
Minorities	32,9	32,3	18,4
Shareholders' Equity & Minorities	176,4	168,1	155,3
Net Debt	58,9	54,0	81,7
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	240,8	227,6	242,5
Accounts Receivables	42,5	40,7	41,8
Accounts Payables	(53,6)	(61,9)	(48,6)
Inventory	95,0	89,4	90,7
Operating NWC	84,0	68,2	83,9
As % of LTM sales	29,6%	24,3%	30,7%
Other Current Assets/Liabilities	4,6	4,8	13,3
Net Working Capital	88,6	73,1	97,2

Summary Cash Flow

Summary Cash Flow
(€m)
	1Q 17	FY 16	1Q 16
PBT	12,2	8,3	10,0
Operating Cash Flow	(3,4)	10,7	(4,4)
Capital Expenditure	(1,0)	(2,3)	(0,7)
Free Cash Flow	(4,4)	8,4	(5,1)
Cash Flows from Financing Activities	3,1	(3,9)	6,7
Cash and cash equivalents at the beginning of the year	14,5	10,0	10,0
Cash Flow of the Period	(1,3)	4,5	1,6
Cash and cash equivalents at the end of the year	13,2	14,5	11,6

Company Profile

IM Fashion 24% Aeffe 5% Tullio Badioli 6% Market 28% Fratelli Ferretti Holding 37%

N° of shares outstanding: 107,362,504

Specialist: Mediobanca S.p.A.

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

Share Information Investor Relations

Investor Relations

AEFFE S.p.A

Annalisa Aldrovandi

+39 0541 965494

annalisa.aldrovandi@aeffe.com

www.aeffe.com

Income Statement – Full Year 2014-2016

(€m)

	2016A	2015A	2014A
Net Sales	280,7	268,8	251,5
% change	4,4%	6,9%	0.2%
Other Revenues	6,8	5,2	4,3
Total Revenues	287,5	274,0	255,9
% change	4,9%	20,1%	$(1.0\%)$
Raw Materials Costs	(90,7)	(86, 2)	(77, 9)
Service Costs	(81,3)	(79, 2)	(68, 6)
Cost for use of third parties assets	(22,8)	(23, 5)	(21, 2)
Personnel	(63, 5)	(61,1)	(58, 6)
Other Operating Expenses	(4, 0)	(4,7)	(3,8)
Total Operating Expenses	(262,3)	(254, 7)	(230, 2)
EBITDA	25,2	19,3	25,7
Margin (% of Net sales)	9,0%	7,2%	10,2%
Depreciation and Amortisation	(15,1)	(13, 5)	(13,7)
EBIT	10,1	5,9	12,0
Margin (% of Net sales)	3,6%	2,2%	4,8%
Net Financial Income / (Expenses)	(1,8)	(3,0)	(5, 9)
PBT	8,3	2,9	6,1
Margin (% of Net sales)	3.0%	1.1%	2,4%
Taxes	(4, 0)	(1,1)	(2,1)
Net income before Minorities	4,4	1,70	4,01
Margin (% of Net sales)	1,6%	0,6%	1,6%
Minority Interests	(0,7)	(0, 2)	(1,3)
Net Income for the Group	3,6	1,5	2,7
Margin (% of Net sales)	1,3%	0,6%	1.1%

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.