Cover 50

Investor Presentation • Nov 29, 2016

COVER 50 S.p.A. Company Presentation

Small Cap Conference, Borsa Italiana Milano – November 29, 2016

Disclaimer

This document has been prepared by COVER 50 S.p.A. (the "Company") solely for information purposes. This document is not an advertisement and does not constitute an offer or invitation to purchase or subscribe for any Shares and neither it or any part of it shall form the basis of or be relied upon in connection with any contract or commitment or investments decision whatsoever. The information contained in this document has not been independently verified and no representation or warranty express or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein.

This presentation is not for distribution in, nor does it constitute an offer of securities for sale in the United States of America, Canada, Australia, Japan or any jurisdiction where such distribution is unlawful, (as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act"). Neither this presentation nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions, or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. Any failure to comply with this restriction may constitute a violation of United States securities laws. The Shares proposed to be offered by the Company have not been, and will not be, registered under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States and may not be offered or sold within the United States, absent registration requirements of the Securities Act and applicable state laws. . This document and its content are confidential and are being provided solely for information purposes and may not be copied, recorded, transmitted, further distributed to any other person or published, in whole or in part, by any medium or in any form for any purpose.

Certain information contained in this presentation may contain forward-looking statements which involve risks and uncertainties and are subject to change. Actual results may differ materially from those contained in any forward-looking statement due to a number of significant risks and future events which are outside of the Company's control and cannot be estimated in advance, such as the future economic environment and the actions of competitors and others involved on the market. These forward-looking statements speak only as at the date of this presentation. The Company cautions you that forward looking-statements are not guarantees of future performance and that its actual financial position, business strategy, plans and objectives of management for future operations may differ materially from those made in or suggested by the forwardlooking statements contained in this presentation. In addition, even if the Company's financial position, business strategy, plans and objectives of management for future operations are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in future periods. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. The recipient will be solely responsible for conducting its own assessment of the information set out in the materials and for the underlying business decision to affect any transaction recommended by, or arising out of, the materials. By accepting this presentation, you acknowledge and agree to be bound by the foregoing limitations and restrictions.

PT – History

PT – Product range

COVER 50 S.p.A. designs, manufactures and markets high-end sartorial trousers. Company's brands are PT01 (classic dress trousers), PT05 (five-pocket jeans), PT01 Woman Pants (classic and denim dedicated to women) and PT Bermuda (shorts):

Breaking convention. A small revolution.

~ 71% on 2015 revenues(*)

Average Sell-Out price: 180€ - 280€

Reinventing tradition, wearing history every day.

~ 16% on 2015 revenues(*)

Average Sell-Out price: 160€ - 240€

Dedicated to women, everyday sophisticated.

~ 10% on 2015 revenues(*)

Average Sell-Out price: 180€ - 280€

Summer is all year long here.

~ 3% on 2015 revenues(*)

Average Sell-Out price: 130€ - 180€

2015 volumes

More than 300.000 trousers manufactured and distributed worldwide

( * ) 2015 Management data

November 29, 2016 | Company Presentation Private & Confidential 5

PT – International footprint

PT – Revenues growth

2009-2016E Revenues trend

PT – Profitability trend

Evolution of profit margins

PT – 1H16 Key financials

Revenues, EBITDA and Net Income (1H16 vs 1H15)

1H16 Revenues breakdown by geography 1H16 Revenues breakdown by product

PT – 1H16 Key financials

Data in Euro millions

Income Statement	1H15		1H16
Total Revenues	12,9	100,0%	13,6	100,0%
Cost of goods sold	(2,9)	(22,8%)	(2,9)	(21,4%)
Other direct costs	(3,8)	(29,3%)	(4,0)	(29,4%)
Contribution margin	6,2	47,9%	6,7	49,3%
Indirect costs	(2,9)	(22,3%)	(3,2)	(23,6%)
EBITDA	3,3	25,6%	3,5	25,7%
D&A	(0,2)	(1,8%)	(0,2)	(1,7%)
EBIT	3,1	23,8%	3,3	24,0%
Net Income	2,2	17,4%	2,6	19,3%
Balance Sheet		1H 2015		1H 2016
Fixed assets		1,6		2,3
Net working Capital		6,2		7,8
LT assets and liab.		(0,6)	(0,8)
Net Capital Emplyed		7,2		9,3
Equity		19,2		21,4
PFN/(Cash)		(12,0)		(12,1)
Tot. Sources		7,2		9,3

Cash Flow	1H 2015	1H 2016
Cash Flow from operating activities	3,3	3,4
Net income	2,2	2,6
Non-cash items	0,2	0,3
Delta in NWC	0,8	0,6
Cash flow from investing activities	(1,0)	(0,3)
Cash flow from financing activities	5,0	(2,2)
Proceeds from IPO	7,4	-
Cash repayments for borrowings	(0,0)	(0,0)
Cash from financial activities	0,1	-
Dividends	(2,5)	(2,2)
Net cash flow	7,2	0,9
Cash at 31/12/14	4,7
Cash at 30/06/15	11,9
Cash at 31/12/15	11,2
Cash at 30/06/16	12,1

PT – IIIQ '16 & pre-Closing '16 Key financials

Data in Euro millions

Income Statement	IIIQ 2015		IIIQ 2016
Total Revenues	22,1	100,0%	22,6	100,0%
Cost of goods sold	(5,4)	(24,3%)	(5,6)	(24,9%)
Other direct costs	(5,9)	(26,9%)	(6,1)	(26,9%)
Contribution margin	10,8	48,8%	10,9	48,2%
Personnel costs	(2,2)	(9,9%)	(2,4)	(10,5%)
Marketing and Adv.	(0,7)	(2,9%)	(0,7)	(3,3%)
Design costs	(0,2)	(1,1%)	(0,2)	(1,2%)
Showroom costs	(0,3)	(1,2%)	(0,3)	(1,3%)
other operating costs	(0,7)	(3,3%)	(0,8)	(3,4%)
Indirect costs	(4,1)	(18,4%)	(4,4)	(19,3%)
EBITDA	6,7	30,4%	6,5	28,9%

The decrease of EBITDA at IIIQ '16 is mainly related to indirect costs growth (+9,0%; personnel and marketing costs);

2016 expected revenues equal to Euro 25,2 mln (about +2% vs full year 2015).

PT – The path from IPO up to now and in the future

Revenues 1H 2016 vs 1H 2015: +3,8%

Revenues 1H 2016 vs 1H 2015: +20,3%

Revenues 1H 2016 vs 1H 2015: +1,6%

• Establishment of PT Pantaloni Torino Corp. based in New York
• Opening of the 4 th PT showroom based in New York
• Hiring of Mr. E. Paschetto (ex Slowear Incotex) as new North America VP with the aim of develop North American market
• About € 1,0 mln invested in USA market since IPO
• Reinforcement of corporate communication & advertising team (+3 people)

WHAT WE HAVE DONE WHAT WE HAVE TO DO

• Target countries:
• Further development:

New markets:

• Focus:

• Brand awareness actions:
• Corporate communication
• Advertising
• Visual merchandising
• Further enhancement of human resources

H.Q.

PT – Contacts

For further information, please contact:

COVER 50 S.p.A. Via Torino, 25 10044 Pianezza (TO) Italy amministrazione@coverweb.it +39 011 966 14 45

Investor Relator Francesco Di Fazio investorrelations@coverweb.it

Banca Intermobiliare di Investimenti e Gestioni S.p.A. Nomad and Specialist

Via Gramsci, 7 10121 Torino (TO) Italy corporate@bancaintermobiliare.com +39 011 08 28 375

COVER 50 S.p.A. Via Torino, 25 - 10044 Pianezza (TO) Italy - t.: +39 011 966 14 45 - f.: +39 011 966 16 89 info@coverweb.it

Showroom Via Sigieri, 4 - 20135 Milano (MI) Italy - t.: +39 02 845 67 646 - f.: +39 02 845 75 682 showroom@coverweb.it