Interim / Quarterly Report • Aug 7, 2015
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
| HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2015 | 1 |
|---|---|
| CORPORATE BOARDS OF THE PARENT COMPANY | 3 |
| ORGANIZATION CHART | 4 |
| BRANDS PORTFOLIO | 5 |
| HEADQUARTERS | 6 |
| SHOWROOMS | 7 |
| MAIN FLAGSHIPSTORE LOCATIONS UNDER DIRECT MANAGEMENT | 8 |
| MAIN ECONOMIC-FINANCIAL DATA | 9 |
| INTERIM MANAGEMENT REPORT | 10 |
| HALF-YEAR CONDENSED FINANCIAL STATEMENTS AT 30 JUNE 2015 | 22 |
| FINANCIAL STATEMENTS | 22 |
| EXPLANATORY NOTES | 27 |
| ATTACHMENTS OF THE EXPLANATORY NOTES | 57 |
| ATTESTATION OF THE HALF YEAR CONDENSED FINANCIAL STATEMENTS PURSUANT TO ART.81-TER OF CONSOB REGULATION N. 11971 OF 14 MAY 1999, AND SUBSEQUENT AMENDMENTS AND ADDITIONS |
62 |
REPORT OF THE AUDITING COMPANY 63
Massimo Ferretti
Alberta Ferretti
Simone Badioli
Marcello Tassinari – Managing Director Roberto Lugano Pierfrancesco Giustiniani Marco Salomoni Sabrina Borocci
Pier Francesco Sportoletti
Fernando Ciotti Daniela Saitta
Barbara Ceppellini Luca Sapucci
Board of Compensation Committee
President
Sabrina Borocci
Members Roberto Lugano Pierfrancesco Giustiniani
Board of Internal Control Committee
President Roberto Lugano
Members Sabrina Borocci Pierfrancesco Giustiniani
Board of Directors Board of Statutory Auditors
Brands portfolio
Via Delle Querce, 51 47842 - San Giovanni in Marignano (RN) Italy
Via San Gregorio, 28 20124 – Milan (MI) Italy
Via Erbosa I° tratto, 92 47030 - Gatteo (FC) Italy
Via Delle Querce, 51 47842 - San Giovanni in Marignano (RN) Italy
MILAN (FERRETTI – POLLINI – CEDRIC CHARLIER– UNGARO) Via Donizetti, 48 20122 - Milan Italy
(FERRETTI – MOSCHINO) 28-29 Conduit Street W1S 2YB - London UK
(FERRETTI – MOSCHINO – POLLINI) 43, Rue du Faubourg Saint Honoré 75008 - Paris France
(GROUP) 30 West 56th Street 10019 - New York USA
(MOSCHINO) Via San Gregorio, 28 20124 - Milan Italy
(LOVE MOSCHINO) Via Settembrini, 1 20124 - Milan Italy
(CEDRIC CHARLIER) 28 Rue de Sevigne 75004 - Paris France
(UNGARO) 6, Avenue Montaigne 75008 - Paris France
Milan Rome Capri Paris London Los Angeles
Milan Venice Bolzano Varese Verona
Florence Venice
Milan Rome Capri Paris London Berlin Los Angeles Seoul Pusan Daegu
| st Half 1 |
st Half 1 |
||
|---|---|---|---|
| 2014 | 2015 | ||
| Total revenues | (Values in millions of EUR) | 123.1 | 132.0 |
| Gross operating margin (EBITDA) | (Values in millions of EUR) | 12.6 | 9.8 |
| Net operating profit (EBIT) | (Values in millions of EUR) | 6.3 | 3.4 |
| Profit before taxes | (Values in millions of EUR) | 2.7 | 1.7 |
| Net profit for the Group | (Values in millions of EUR) | 0.2 | 0.0 |
| Basic earnings per share | (Values in units of EUR) | 0.001 | 0.000 |
| Cash Flow (net profit + depreciation) | (Values in millions of EUR) | 6.7 | 6.3 |
| Cash Flow/Total revenues | (Values in percentage) | 5.4 | 4.8 |
| 30 June |
|---|
| 2015 |
| 246.2 |
| 98.1 |
| 130.1 |
| 1.2 |
| 2.4 |
| 1.1 |
| 0.7 |
Aeffe Group operates worldwide in the fashion and luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods. The Group develops, produces and distributes, with a constant focus on the qualities of uniqueness and exclusivity, its own collections both under its own-label brands, including "Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino" and "Pollini", and under licensed brands, which include "Blugirl", "Cedric Charlier" and "Ungaro". The Group has also licensed to key partners the production and distribution of other accessories and products with which it supplements its product range (perfumes, junior and children's lines, watches, sunglasses and other).
The Group's business is divided, based on the various product lines and brands it sells, into two segments: (i) prêt-a-porter (which includes prêt-a-porter lines, lingerie and swimwear); and (ii) footwear and leather goods.
The Prêt-a-porter Division, which is composed of the companies Aeffe, Moschino and Velmar, is mainly involved in the design, production and distribution of luxury prêt-a-porter garments and lingerie, beachwear and loungewear.
In terms of the prêt-a-porter collections, the activity is carried out by Aeffe, both for the production of the Group's proprietary brands ("Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino", "Boutique Moschino" and "Love Moschino") and brands licensed from other companies (such as "Blugirl", "Cedric Charlier" and "Ungaro"). Aeffe also handles the distribution of all Division products both through the retail channel (via subsidiaries) and through the wholesale channel.
Velmar manufactures and distributes lingerie and swimwear collections, and specifically men's/women's lingerie, underwear, beachwear and loungewear. Collections are produced and distributed under the Group's proprietary brands, as "Moschino", and under third-party licensed brands as "Blugirl".
The Prêt-a-porter Division also manages licensing agreements granted to other companies to manufacture Aeffe and Moschino branded product lines such as the "Moschino" brand licensing agreement relating to the Love line, "Moschino" branded perfumes and "Moschino" branded sunglasses.
Aeffe is the brainchild of designer Alberta Ferretti, who set up her own business in 1972. The history of the Parent Company has developed in parallel with that of its founder, whose personal involvement in fashion has been a key factor in Aeffe's development.
The growth of the Parent Company as an industrial and creative entity has been distinguished from the start by a multi-brand approach, with Aeffe producing and distributing the prêt-a-porter collections of leading fashion houses utilising the know-how acquired in the production of luxury prêt-a-porter lines.
This provides the context for the partnership between Aeffe and designer Franco Moschino, whose brand "Moschino Couture!" it has produced and distributed under an exclusive licence since 1983.
Between 1995 and 2013, Aeffe worked with designer Jean Paul Gaultier producing and distributing the women prêt-à-porter collections branded "Jean Paul Gaultier".
In 2001, Aeffe gained control of Pollini, an established manufacturer of footwear and leather goods. This allowed Aeffe to supplement the collections produced in-house with an accessories line.
In 2002, Aeffe took over Velmar, a firm that had collaborated with Aeffe for some time on the production and distribution of lingerie, beachwear and loungewear lines.
In 2007, Aeffe, obtained the Consob Nulla Osta to public the offering memorandum relating to the Public Offering and the listing on the MTA – Star Segment – of Aeffe S.p.A. ordinary shares, closes successfully the Offer of shares and starts to be traded on the MTA – Star Segment – by Borsa Italiana.
Moschino was founded in 1983 and grew during the 1990s to become an internationally renowned brand. Following the disappearance in 1994 of its founder, Franco Moschino, his family, staff and friends have kept the designer's legacy alive, respecting his creative identity and philosophy. Rossella Jardini, who has worked for Franco Moschino since 1981, succeeded him as artistic director and becoming in charge of brand image and styling.
The company provides design, marketing and agency services from the Milan showroom for Moschino collections in Italy and overseas.
The company also directly manages seven single-brand Moschino stores, three in Milan, one in Rome, one in Capri, one in Turin and on-line.
In 2007 Moschino signed a licence agreement with Binda Group for the production and distribution of watches and jewellery branded "Moschino Cheap and Chic".
In 2013 Jeremy Scott was appointed as creative director of the "Moschino" brand.
Velmar was created in 1983 in San Giovanni in Marignano and is active in the production and distribution of lingerie, underwear, beachwear and loungewear.
In 1990, a partnership began between Velmar and designer Anna Molinari to manufacture lingerie and beachwear lines. That same year, talks began with Aeffe and Genny.
Between 1990 and 1995, Velmar worked with Genny and Fendi, producing all of the swimwear lines designed by the two fashion houses. Between 1990 and 2001, Velmar worked with Itierre and Prada on the design and production of the active and sportswear lines sold under the "Extee" and "Prada" menswear labels.
Between 1995 and 1998, Velmar produced and distributed under licence the beachwear line for Byblos menswear and womenswear.
In 1998, Velmar signed a licensing agreement with Blufin for the production and distribution of "Blugirl" lines.
In 2001, Aeffe acquired 75% of Velmar. Again, this represented a natural progression of the existing partnership between the two companies.
In 2006, Velmar obtained a licence for the production and distribution of the men's beachwear and underwear lines and women's lingerie lines under the "Moschino" brand.
In 2010, Aeffe acquires the remaining 25% of Velmar's share capital.
In 2012 Velmar signed a licensing agreement with Blufin for the design, production and international distribution of "teen" women prêt-à-porter line branded Blugirl Folies.
Aeffe USA is 100% owned by Aeffe S.p.A. and was incorporated in May 1987 under the laws of the State of New York.
The company operates in the wholesale segment of the North American market (United States and Canada) distributing items of clothing and accessories produced by the Parent Company, Pollini S.p.A. and Velmar S.p.A. and other third-party licensed manufacturers, with different collections, of the brands produced by the Parent Company. The company also acts as agent for some of these lines. The company operates out of its showroom located in midtown Manhattan. Aeffe USA also manages a single-brand store in West Hollywood, Los Angeles.
Aeffe Retail operates in the retail segment of the Italian market and directly manages 12 stores, both monobrand and multi-brand located in major Italian cities such as Milan, Rome, Venice, Florence and Capri, manages also an on-line mono-brand store.
Clan Cafè S.r.l., incorporated in 2007, is 62.9% owned by Aeffe Retail. Since 2011 it entered into a lease of a business with the company Jader S.r.l. for the management of a store located in Milan Via Pontaccio 19, which distributes clothing and accessories produced by Aeffe Group and by third parties.
Nuova Stireria Tavoleto, company based in Tavoleto (Pesaro-Urbino) and 100% owned by Aeffe S.p.A. has sold, starting from the 1st of January 2014, the business division related to industrial pressing services to a third company.
Aeffe UK is 100% owned by Aeffe S.p.A. and manages the store in London's Sloane Street, which sells clothing and accessories under the Alberta Ferretti and Philosophy di Lorenzo Serafini brands.
Aeffe France is 99.9% owned by Aeffe S.p.A. and manages the store in Rue St. Honorè in Paris, selling apparel and accessories under the Alberta Ferretti and Philosophy di Lorenzo Serafini brands. The company also acts as an agent for the French market.
Aeffe Japan, company based in Tokyo and 100% owned by Aeffe S.p.A., has sold, starting from the 1st of January 2014, the distributing and franchising activities for the collections branded "Alberta Ferretti" and "Philosophy" to Woollen Co., Ltd..
In 2014 the company, as owner of a new brand, has decided to develop it in the Japanese market and to that end has licensed it to a third party for the marketing of products in the country.
Moschino Japan, company based in Tokyo and 100% owned by Moschino S.p.A., has sold starting from the 1st of January 2014, the distributing and franchising activities for the collections branded Moschino to Woollen Co., Ltd..
In 2014 the company, as owner of a new brand, has decided to develop it in the Japanese market and to that end has licensed it to a third party for the marketing of products in the country.
Moschino Korea is 100% owned by Moschino S.p.A. and is based in Seoul. The company exclusively operates in the retail segment through flagship stores under direct management which sell Moschino-branded collections.
Fashoff UK operates from the showroom in London, acting as agent for the Moschino-branded collections produced by Aeffe, Pollini, Forall (men) and Falc (men's/children's shoes), and importing the other collections (jeans, umbrellas, gloves, scarves and Velmar collections).
The company also directly manages a single-brand Moschino store in London.
Moschino France is based in the Paris showroom and acts as agent for all Moschino collections except childrenswear, eyewear, perfumes and watches.
The company also manages a single-brand Moschino store in Paris.
Moschino Gmbh directly manages a single-brand Moschino store in Berlin.
Bloody Mary, company based in New York and 100% owned by Moschino S.p.A., has signed, starting from 2014, a sublease contract for the management of a store placed at 401 West 14th Street New York.
Moschino USA, founded in 2014 with base in New York and 100% owned by Moschino S.p.A. directly manages a single-brand Moschino store in Los Angeles.
The footwear and leather goods Division, which is composed of Pollini and its subsidiaries, mainly handles the design, production and distribution of footwear, small leather goods, bags and matching accessories made from exclusive materials.
The operating activity is mainly carried out by Pollini, which directly handles the design, production and distribution of own-label products, as well as the production and distribution of brands licensed by Group companies.
The footwear and leather goods division also manages licensing agreements granted to other companies to manufacture "Pollini" products such as umbrellas, foulards and ties.
Pollini was established in 1953 in the shoemaking district of San Mauro Pascoli, following in the Italian tradition of handmade leather goods and shoes. Italy is a leading producer of footwear: due to expertise required to make these products, nearly all production sites are located in areas with a long-standing shoemaking tradition, such as San Mauro Pascoli, Vigevano and Strà (PD). The company's philosophy is focused on promoting Pollini in other countries as an amalgam of traditional quality and Italian style, offering a range of products that include shoes, bags and matching accessories.
Between 1957 and 1961, Pollini produced the footwear collections of the designer Bruno Magli.
In the 1960s and early 1970s, Pollini began making shoes under its own label, presenting "themed" collections (such as the "Daytona" sports footwear collection, inspired by the world of motorbike racing).
In the 1970s, Pollini rose to international fame: at that point, its collections were shown in Düsseldorf, Paris and New York, as well as in Milan and Bologna. Around the same time, the first stores opened in Milan, Verona, Varese and Venice.
In 1989, Pollini moved into its new office in Gatteo, in the Italian province of Forlì-Cesena. The new site measures 50,000 sq. m., just over a third of it indoor, with a production workshop and seven-storey building housing the showroom and offices. The new site brought the footwear and leather goods divisions and sales and administration offices under one roof.
In 2001, Aeffe and Pollini reached an agreement whereby Aeffe would acquire a controlling stake in Pollini. The acquisition was a natural progression of the increasingly concentrated partnership between the two companies, enabling the growth of the footwear and leather goods lines designed by Alberta Ferretti.
Always in 2008, Pollini has entered into new license agreements with Drops S.r.l., for the manufacturing of umbrellas, as well as Larioseta S.p.A., for the manufacturing and distribution of neckwear, including women's shawls, women's and men's scarves and ties.
In 2011 Aeffe S.p.A. has acquired the remaining 28% shareholding of Pollini S.p.A., becoming the sole shareholder.
Pollini Retail is active in the retail segment of the Italian market and directly manages 20 stores, between boutiques and outlets, in major Italian cities such as Milan and Venice.
Pollini Suisse directly manages the mono-brand Pollini store in Mendrisio, Switzerland.
Pollini Austria directly manages the mono-brand Pollini store in Pandorf, Austria.
| (Values in units of EUR) | st Half 1 |
% | st Half 1 |
% | Change | % |
|---|---|---|---|---|---|---|
| 2015 | on revenues | 2014 | on revenues | |||
| REVENUES FROM SALES AND SERVICES | 128,722,575 | 100.0% | 121,064,933 | 100.0% | 7,657,642 | 6.3% |
| Other revenues and income | 3,286,684 | 2.6% | 2,025,757 | 1.7% | 1,260,927 | 62.2% |
| TOTAL REVENUES | 132,009,259 | 102.6% | 123,090,690 | 101.7% | 8,918,569 | 7.2% |
| Changes in inventory | 8,931,622 | 6.9% | 5,793,082 | 4.8% | 3,138,540 | 54.2% |
| Costs of raw materials, cons. and goods for resale | ( 48,902,247) | (38.0%) | ( 42,642,492) | (35.2%) | ( 6,259,755) | 14.7% |
| Costs of services | ( 37,560,279) | (29.2%) | ( 32,013,312) | (26.4%) | ( 5,546,967) | 17.3% |
| Costs for use of third parties assets | ( 11,371,425) | (8.8%) | ( 10,455,439) | (8.6%) | ( 915,986) | 8.8% |
| Labour costs | ( 30,728,131) | (23.9%) | ( 29,205,519) | (24.1%) | ( 1,522,612) | 5.2% |
| Other operating expenses | ( 2,614,978) | (2.0%) | ( 1,996,739) | (1.6%) | ( 618,239) | 31.0% |
| Total Operating Costs | ( 122,245,438) | (95.0%) | ( 110,520,419) | (91.3%) | ( 11,725,019) | 10.6% |
| GROSS OPERATING MARGIN (EBITDA) | 9,763,821 | 7.6% | 12,570,271 | 10.4% | ( 2,806,450) | (22.3%) |
| Amortisation of intangible fixed assets | ( 3,575,208) | (2.8%) | ( 3,428,422) | (2.8%) | ( 146,786) | 4.3% |
| Depreciation of tangible fixed assets | ( 2,661,668) | (2.1%) | ( 2,612,231) | (2.2%) | ( 49,437) | 1.9% |
| Revaluations/(write-downs) and provisions | ( 100,616) | (0.1%) | ( 247,087) | (0.2%) | 146,471 | (59.3%) |
| Total Amortisation, write-downs and provisions | ( 6,337,492) | (4.9%) | ( 6,287,740) | (5.2%) | ( 49,752) | 0.8% |
| NET OPERATING PROFIT / LOSS (EBIT) | 3,426,329 | 2.7% | 6,282,531 | 5.2% | ( 2,856,202) | (45.5%) |
| Financial income | 487,507 | 0.4% | 120,541 | 0.1% | 366,966 | 304.4% |
| Financial expenses | ( 2,229,064) | (1.7%) | ( 3,657,528) | (3.0%) | 1,428,464 | (39.1%) |
| Total Financial Income/(Expenses) | ( 1,741,557) | (1.4%) | ( 3,536,987) | (2.9%) | 1,795,430 | (50.8%) |
| PROFIT / LOSS BEFORE TAXES | 1,684,772 | 1.3% | 2,745,544 | 2.3% | ( 1,060,772) | (38.6%) |
| Taxes | ( 1,585,924) | (1.2%) | ( 2,095,495) | (1.7%) | 509,571 | (24.3%) |
| NET PROFIT / LOSS | 98,848 | 0.1% | 650,049 | 0.5% | ( 551,201) | (84.8%) |
| (Profit)/loss attributable to minority shareholders | ( 64,191) | (0.0%) | ( 499,735) | (0.4%) | 435,544 | (87.2%) |
| NET PROFIT / LOSS FOR THE GROUP | 34,657 | 0.0% | 150,314 | 0.1% | ( 115,657) | (76.9%) |
In the first semester of 2015, Aeffe consolidated revenues amount to EUR 128.7 million compared to EUR 121.1 million in the first semester of 2014, with a 6.3% increase at current exchange rates and +4.4% at constant exchange rates.
The revenues of the prêt-à-porter division increase by 5.0% (+2.5% at constant exchange rates) to EUR 99.5 million.
The revenues of the footwear and leather goods division increase by 22.0% to EUR 46 million, before interdivisional eliminations.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |||
|---|---|---|---|---|---|---|
| 2015 | % | 2014 | % | ∆ | % | |
| Alberta Ferretti | 12,858 | 10.0% | 10,357 | 8.6% | 2,501 | 24.1% |
| Philosophy | 5,912 | 4.6% | 8,231 | 6.8% | ( 2,319) | (28.2%) |
| Moschino | 87,301 | 67.8% | 75,341 | 62.2% | 11,960 | 15.9% |
| Pollini | 13,909 | 10.8% | 15,449 | 12.8% | ( 1,540) | (10.0%) |
| Other | 8,743 | 6.8% | 11,687 | 9.6% | ( 2,944) | (25.2%) |
| Total | 128,723 | 100.0% | 121,065 | 100.0% | 7,658 | 6.3% |
In 1stH 2015, Alberta Ferretti brand increases by 24.1% (+21.5% at constant exchange rates), generating 10.0% of consolidated sales, while Philosophy brand decreases by 28.2% (-29.7% at constant exchange rates), generating 4.6% of consolidated sales.
In the same period, Moschino brand sales increase by 15.9% (+14.0% at constant exchange rates), contributing to 67.8% of consolidated sales.
Pollini brand records a decrease of 10.0% (-10.7% at constant exchange rates), generating the 10.8% of consolidated sales.
Other brands sales decrease by 25.2% (-29.0% at constant exchange rates), equal to 6.8% of consolidated sales.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |||
|---|---|---|---|---|---|---|
| 2015 | % | 2014 | % | ∆ | % | |
| Italy | 57,134 | 44.4% | 52,925 | 43.7% | 4,209 | 8.0% |
| Europe (Italy and Russia excluded) | 28,657 | 22.3% | 28,416 | 23.5% | 241 | 0.8% |
| Russia | 4,666 | 3.6% | 9,482 | 7.8% | ( 4,816) | (50.8%) |
| United States | 9,729 | 7.6% | 7,100 | 5.9% | 2,629 | 37.0% |
| Japan | 3,889 | 3.0% | 3,223 | 2.7% | 666 | 20.6% |
| Rest of the World | 24,648 | 19.1% | 19,919 | 16.4% | 4,729 | 23.7% |
| Total | 128,723 | 100.0% | 121,065 | 100.0% | 7,658 | 6.3% |
In 1stH 2015, the Group records sales in Italy for EUR 57,134 thousand, contributing to 44.4% of consolidated sales with a 8.0% increase.
In Europe Group's sales increase by 0.8%, contributing to 22.3% of consolidated sales, while sales in Russia are EUR 4,666 thousand contributing to 3.6% of consolidated sales, with a decrease of 50.8%. Sales in the United States are EUR 9,729 thousand contributing to 7.6% of consolidated sales, with an increase of 37.0% (+14.6% at constant exchange rates). In Japan sales, contributing to 3.0% of consolidated sales, increase by 20.7%.
The Rest of the world records sales for EUR 24,648 thousand, contributing to 19.1% of consolidated sales, up 23.7% (+21.6% at constant exchange rates) compared to the first semester 2014, especially thanks to a good trend in Greater China.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |||
|---|---|---|---|---|---|---|
| 2015 | % | 2014 | % | ∆ | % | |
| Wholesale | 85,550 | 66.5% | 79,265 | 65.5% | 6,285 | 7.9% |
| Retail | 38,225 | 29.7% | 34,514 | 28.5% | 3,711 | 10.8% |
| Royalties | 4,948 | 3.8% | 7,286 | 6.0% | ( 2,338) | (32.1%) |
| Total | 128,723 | 100.0% | 121,065 | 100.0% | 7,658 | 6.3% |
Revenues generated by the Group in the 1stH 2015 are analysed below:
Labour costs increase from EUR 29,206 thousand in 1stH 2014 to EUR 30,728 thousand in 1stH 2015 with an incidence on revenues which decrease from 24.1% in the first semester 2014 to 23.9% in the first semesters 2015.
The workforce decreases from an average of 1,248 units in the 1stH 2014 to 1,271 units in the 1stH 2015.
| Total | 1,271 | 1,248 | 23 | 1.8% |
|---|---|---|---|---|
| Executive and senior managers | 23 | 25 | ( 2) | (8.0%) |
| Office staff-supervisors | 1,019 | 976 | 43 | 4.4% |
| Workers | 229 | 247 | ( 18) | (7.3%) |
| 2015 | 2014 | ∆ | % | |
| Average number of employees by category | st Half 1 |
st Half 1 |
Change |
In 1stH 2015 consolidated EBITDA is EUR 9,764 thousand (with an incidence of 7.6% of sales) compared to EUR 12,570 thousand in 1stH 2014 (with an incidence of 10.4% of sales).
EBITDA of the prêt-à-porter division is equal to EUR 5,534 thousand (representing the 5.7% of sales) compared to EUR 10,656 thousand in 1stH 2014 (representing the 11.2% of sales), with a worsening of profitability of EUR 5,122 thousand.
Key factors which influenced this trend were as follows: a) initiatives to relaunch Philosophy brand following the change of the creative direction, together with events dedicated to Moschino brand to promote the new men's collection which will be produced in house starting from the Autumn/Winter 2015 season; b) increase in marketing and advertising activities aimed at further enhancing Moschino brand; c) discounts granted to Russian customers to support them in the current difficult economic local situation; d) investments in retail and staff for the new Moschino boutiques in Los Angeles and in Milan.
EBITDA of the Footwear and leather goods division increases of EUR 2,316 thousand from EUR 1,914 thousand in 1stH 2014 (representing the 5% of sales) to EUR 4,230 thousand in 1stH 2015 (representing the 9% of sales).
Consolidated EBIT is positive for EUR 3,426 thousand compared to EUR 6,282 thousand in 1stH 2014, showing a decrease of EUR 2,856 thousand.
Result before taxes decreases of EUR 1.061 thousand from EUR 2,746 thousand in 1stH 2014 to EUR 1,685 thousand in 1stH 2015.
The net result for the Group changes from EUR 150 thousand in 1stH 2014 to EUR 35 thousand in 1stH 2015, with a decrease in absolute value of EUR 115.
| (Values in units of EUR) | 30 June | 31 December | 30 June |
|---|---|---|---|
| 2015 | 2014 | 2014 | |
| Trade receivables | 38,184,333 | 36,884,748 | 36,463,901 |
| Stock and inventories | 93,886,978 | 83,867,256 | 78,628,002 |
| Trade payables | ( 51,917,308) | ( 55,052,139) | ( 44,827,217) |
| Operating net working capital | 80,154,003 | 65,699,865 | 70,264,686 |
| Other short term receivables | 27,550,085 | 24,881,205 | 25,523,300 |
| Tax receivables | 10,066,239 | 8,531,445 | 6,978,862 |
| Other short term liabilities | ( 17,106,788) | ( 14,319,321) | ( 16,538,769) |
| Tax payables | ( 2,749,626) | ( 3,124,892) | ( 2,948,844) |
| Net working capital | 97,913,913 | 81,668,302 | 83,279,235 |
| Tangible fixed assets | 64,051,037 | 63,770,590 | 63,827,198 |
| Intangible fixed assets | 125,624,427 | 127,926,760 | 130,092,062 |
| Equity investments | 131,557 | 80,268 | 30,252 |
| Other fixed assets | 4,510,280 | 4,701,444 | 4,784,313 |
| Fixed assets | 194,317,301 | 196,479,062 | 198,733,825 |
| Post employment benefits | ( 7,001,302) | ( 7,457,710) | ( 7,040,370) |
| Provisions | ( 968,306) | ( 2,047,384) | ( 1,356,310) |
| Assets available for sale | 436,885 | 436,885 | 436,885 |
| Long term not financial liabilities | ( 14,511,382) | ( 14,080,132) | ( 14,045,132) |
| Deferred tax assets | 12,681,427 | 13,368,052 | 12,047,468 |
| Deferred tax liabilities | ( 36,666,477) | ( 36,828,733) | ( 37,132,325) |
| NET CAPITAL INVESTED | 246,202,059 | 231,538,342 | 234,923,276 |
| Share capital | 25,371,407 | 25,371,407 | 25,371,407 |
| Other reserves | 114,086,891 | 115,285,814 | 115,266,113 |
| Profits/(Losses) carried-forward | ( 9,405,881) | ( 13,341,832) | ( 12,946,641) |
| Profits/(Loss) for the period | 34,657 | 2,741,670 | 150,314 |
| Group interest in shareholders' equity | 130,087,074 | 130,057,059 | 127,841,193 |
| Minority interest in shareholders' equity | 17,978,913 | 17,914,722 | 17,144,051 |
| Total shareholders' equity | 148,065,987 | 147,971,781 | 144,985,244 |
| Short term financial receivables | ( 2,215,854) | ( 1,000,000) | ( 1,000,000) |
| Cash | ( 7,962,978) | ( 6,691,668) | ( 5,606,329) |
| Long term financial liabilities | 17,699,029 | 12,752,273 | 13,910,060 |
| Long term financial receivables | ( 1,949,325) | ( 1,718,063) | ( 1,416,166) |
| Short term financial liabilities | 92,565,200 | 80,224,019 | 84,050,467 |
| NET FINANCIAL POSITION | 98,136,072 | 83,566,561 | 89,938,032 |
| SHAREHOLDERS' EQUITY AND NET FINANCIAL INDEBTEDNESS | 246,202,059 | 231,538,342 | 234,923,276 |
Net invested capital increases by 6.3% compared with 31 December 2014.
Net working capital amounts to EUR 97,914 thousand (37.8% of LTM sales) compared with EUR 81,668 thousand of 31 December 2014 (32.5% of sales).
The changes in the main items included in the net working capital are described below:
Fixed assets decrease by EUR 2,162 thousand from 31 December 2014 to 30 June 2015.
The changes in the main items are described below:
The net financial position of the Group amounts to EUR 98,136 thousand as of 30 June 2015 compared with EUR 83,566 thousand as of 31 December 2014. Such increase is mainly due to the increase in net working capital and to higher capex of the period.
The shareholders' equity increases for EUR 94 thousand from EUR 147,971 thousand as of 31 December 2014 to EUR 148,065 thousand as of 30 June 2015. The reasons of such decrease are illustrated in the explanatory notes. The number of shares is 107,362,504.
Considering the particular nature of the Group's products, research & development activities consist in the continual technical/stylistic renewal of models and the constant improvement of the materials employed in production. Such costs were charged in full to the Income Statement.
During the period, there were no transactions with related parties, including intragroup transactions, which qualified as unusual or atypical. Any related party transactions formed part of the normal business activities of companies in the Group. Such transactions are concluded at standard market terms for the nature of goods and/or services offered.
Information on transactions with related parties, including specific disclosures required by the Consob Communication of 28 July 2006, is provided in Note 40 of the Half-year Condensed Financial Statements at 30 June 2015.
No significant events occurred during the semester.
Subsequent to the balance sheet date no significant events regarding the Group's activities have to be reported.
As emerged from the data published in the economic report of Banca d'Italia, the global economic recovery has continued but shows signs of slowing, the consequence of factors that are temporary in the advanced economies and more persistent in the emerging ones. World trade is forecast to accelerate this year. So far the excess supply in world oil markets has helped to hold prices to levels only marginally higher than the lows recorded at the start of the year. The world economy is weighed down by uncertainties regarding the pace of official interest rate increases in the United States and financial instability in China, taking the form of a sharp stock market fall halted only by massive public intervention, which could curtail Chinese economic growth.
The Italian economy has begun to expand. Improvement in business and household confidence has been accompanied by a recovery in domestic demand, which is once again contributing to growth. Investment, which had contracted almost without interruption since 2008, recorded an upturn, with the first positive signals now visible in the construction industry as well. Firms' investment plans indicate a vigorous expansion of capital formation by the larger companies this year and a more prudent attitude on the part of mediumsized and especially small firms. According to the most recent cyclical indicators, growth continued in the second quarter at about the same pace as in the first.
The risks to the growth forecast appear to be balanced this year but are prevalently on the downside for 2016. They derive largely from the world and European context, and in particular the risk of a deeper and longer slowdown in the emerging economies than is now assumed, the possibility that monetary normalization in the United States may be accompanied by fresh turmoil in the foreign exchange markets and in capital flows, and renewed financial market tensions. The risks would be heightened if it were perceived that the determination to carry through the reforms that are necessary to boost Italy's potential growth was lacking. Heightened uncertainty could act as a brake on investment growth and impede the recovery in consumption, which are essential conditions for a return to sustained growth.
In light of the continued appreciation of the market, also witnessed by a 7% increase in the orders' backlog for the next Autumn/Winter collections, we have conceived a development plan designed to capitalize on the positive momentum for the Group, through the identification of opportunities for growth in the mediumlong term. In a global and very competitive market, we believe it is the right time to undertake specific investments to promote the desirability and the distinctiveness of our brands, both in terms of visibility and positioning and retail distribution expansion.
| (Values in units of EUR) | Notes | 30 June | 31 December | Change |
|---|---|---|---|---|
| 2015 | 2014 | |||
| NON-CURRENT ASSETS | ||||
| Intangible fixed assets | ||||
| Key money | 34,336,872 | 34,916,804 | ( 579,932) | |
| Trademarks | 90,708,968 | 92,455,759 | ( 1,746,791) | |
| Other intangible fixed assets | 578,587 | 554,197 | 24,390 | |
| Total intangible fixed assets | (1) | 125,624,427 | 127,926,760 | ( 2,302,333) |
| Tangible fixed assets | ||||
| Lands | 16,958,413 | 16,828,413 | 130,000 | |
| Buildings | 23,414,629 | 23,688,050 | ( 273,421) | |
| Leasehold improvements | 16,772,381 | 16,177,831 | 594,550 | |
| Plant and machinary | 2,651,288 | 2,953,095 | ( 301,807) | |
| Equipment | 327,052 | 308,741 | 18,311 | |
| Other tangible fixed assets | 3,927,274 | 3,814,460 | 112,814 | |
| Total tangible fixed assets | (2) | 64,051,037 | 63,770,590 | 280,447 |
| Other fixed assets | ||||
| Equity investments | (3) | 131,557 | 80,268 | 51,289 |
| Long term financial receivables | (4) | 1,949,325 | 1,718,063 | 231,262 |
| Other fixed assets | (5) | 4,510,280 | 4,701,444 | ( 191,164) |
| Deferred tax assets | (6) | 12,681,427 | 13,368,052 | ( 686,625) |
| Total other fixed assets | 19,272,589 | 19,867,827 | ( 595,238) | |
| TOTAL NON-CURRENT ASSETS | 208,948,053 | 211,565,177 | ( 2,617,124) | |
| CURRENT ASSETS | ||||
| Stocks and inventories | (7) | 93,886,978 | 83,867,256 | 10,019,722 |
| Trade receivables | (8) | 38,184,333 | 36,884,748 | 1,299,585 |
| Tax receivables | (9) | 10,066,239 | 8,531,445 | 1,534,794 |
| Cash | (10) | 7,962,978 | 6,691,668 | 1,271,310 |
| Financial receivables | (11) | 2,215,854 | 1,000,000 | 1,215,854 |
| Other receivables | (12) | 27,550,085 | 24,881,205 | 2,668,880 |
| TOTAL CURRENT ASSETS | 179,866,467 | 161,856,322 | 18,010,145 | |
| Assets available for sale | (13) | 436,885 | 436,885 | - |
| TOTAL ASSETS | 389,251,405 | 373,858,384 | 15,393,021 |
Pursuant to Consob Resolution N. 15519 of 27 July 2006, the effects of related party transactions on the Consolidated statement of financial position are presented in the specific scheme provided in the attachment I and are further described in the paragraph "Related party transactions".
| (Values in units of EUR) | Notes | 30 June | 31 December | Change |
|---|---|---|---|---|
| 2015 | 2014 | |||
| SHAREHOLDERS' EQUITY | (14) | |||
| Group interest | ||||
| Share capital | 25,371,407 | 25,371,407 | - | |
| Other reserves | 114,086,891 | 115,285,814 | ( 1,198,923) | |
| Profits / (losses) carried-forward | ( 9,405,881) | ( 13,341,832) | 3,935,951 | |
| Net profit / (loss) for the Group | 34,657 | 2,741,670 | ( 2,707,013) | |
| Group interest in shareholders' equity | 130,087,074 | 130,057,059 | 30,015 | |
| Minority interest | ||||
| Minority interests in share capital and reserves | 17,914,722 | 16,650,473 | 1,264,249 | |
| Net profit / (loss) for the minority interests | 64,191 | 1,264,249 | ( 1,200,058) | |
| Minority interests in shareholders' equity | 17,978,913 | 17,914,722 | 64,191 | |
| TOTAL SHAREHOLDERS' EQUITY | 148,065,987 | 147,971,781 | 94,206 | |
| NON-CURRENT LIABILITIES | ||||
| Provisions | (15) | 968,306 | 2,047,384 | ( 1,079,078) |
| Deferred tax liabilities | (6) | 36,666,477 | 36,828,733 | ( 162,256) |
| Post employment benefits | (16) | 7,001,302 | 7,457,710 | ( 456,408) |
| Long term financial liabilities | (17) | 17,699,029 | 12,752,273 | 4,946,756 |
| Long term not financial liabilities | (18) | 14,511,382 | 14,080,132 | 431,250 |
| TOTAL NON-CURRENT LIABILITIES | 76,846,496 | 73,166,232 | 3,680,264 | |
| CURRENT LIABILITIES | ||||
| Trade payables | (19) | 51,917,308 | 55,052,139 | ( 3,134,831) |
| Tax payables | (20) | 2,749,626 | 3,124,892 | ( 375,266) |
| Short term financial liabilities | (21) | 92,565,200 | 80,224,019 | 12,341,181 |
| Other liabilities | (22) | 17,106,788 | 14,319,321 | 2,787,467 |
| TOTAL CURRENT LIABILITIES | 164,338,922 | 152,720,371 | 11,618,551 | |
| Liabilities available for sale | - | - | - | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 389,251,405 | 373,858,384 | 15,393,021 |
Pursuant to Consob Resolution N. 15519 of 27 July 2006, the effects of related party transactions on the Consolidated statement of financial position are presented in the specific scheme provided in the attachment II and are further described in the paragraph "Related party transactions".
| (Values in units of EUR) | Notes | st Half 1 |
st Half 1 |
||
|---|---|---|---|---|---|
| 2015 | % | 2014 | % | ||
| REVENUES FROM SALES AND SERVICES | (23) | 128,722,575 | 100.0% | 121,064,933 | 100.0% |
| Other revenues and income | (24) | 3,286,684 | 2.6% | 2,025,757 | 1.7% |
| TOTAL REVENUES | 132,009,259 | 102.6% | 123,090,690 | 101.7% | |
| Changes in inventory | 8,931,622 | 6.9% | 5,793,082 | 4.8% | |
| Costs of raw materials, cons. and goods for resale | (25) | ( 48,902,247) | (38.0%) | ( 42,642,492) | (35.2%) |
| Costs of services | (26) | ( 37,560,279) | (29.2%) | ( 32,013,312) | (26.4%) |
| Costs for use of third parties assets | (27) | ( 11,371,425) | (8.8%) | ( 10,455,439) | (8.6%) |
| Labour costs | (28) | ( 30,728,131) | (23.9%) | ( 29,205,519) | (24.1%) |
| Other operating expenses | (29) | ( 2,614,978) | (2.0%) | ( 1,996,739) | (1.6%) |
| Amortisation, write-downs and provisions | (30) | ( 6,337,492) | (4.9%) | ( 6,287,740) | (5.2%) |
| Financial income/(expenses) | (31) | ( 1,741,557) | (1.4%) | ( 3,536,987) | (2.9%) |
| PROFIT / LOSS BEFORE TAXES | 1,684,772 | 1.3% | 2,745,544 | 2.3% | |
| Taxes | (32) | ( 1,585,924) | (1.2%) | ( 2,095,495) | (1.7%) |
| NET PROFIT / LOSS | 98,848 | 0.1% | 650,049 | 0.5% | |
| (Profit)/loss attributable to minority shareholders | ( 64,191) | (0.0%) | ( 499,735) | (0.4%) | |
| NET PROFIT / LOSS FOR THE GROUP | 34,657 | 0.0% | 150,314 | 0.1% |
(*) Pursuant to Consob Resolution N. 15519 of 27 July 2006, the effects of related party transactions on the Consolidated Income Statement are presented in the specific scheme provided in the attachment III and are further described in the paragraph "Related party transactions".
| (Values in units of EUR) | st Half 1 |
st Half 1 |
|---|---|---|
| 2015 | 2014 | |
| Profit/(loss) for the period (A) | 98,848 | 650,049 |
| Other comprehensive income that will not be reclassified subsequently to profit or | ||
| loss: | ||
| Remeasurement of defined benefit plans | - | - |
| Income tax relating to components of Other comprehensive income that will not be | ||
| reclassified subsequently to profit or loss | - | - |
| Total other comprehensive income that will not be reclassified subsequently to profit | ||
| or loss, net of tax (B1) | - | - |
| Other comprehensive income that will be reclassified subsequently to profit or loss: | ||
| Gains/(losses) on cash flow hedges | - | - |
| Gains/(losses) on exchange differences on translating foreign operations | ( 4,637) | 917,116 |
| Income tax relating to components of Other Comprehensive income / (loss) | - | - |
| Total other comprehensive income that will be reclassified subsequently to profit or | ||
| loss, net of tax (B2) | ( 4,637) | 917,116 |
| Totale Other comprehensive income, net of tax(B1)+(B2)=(B) | ( 4,637) | 917,116 |
| Total Comprehensive income / (loss) (A) + (B) | 94,211 | 1,567,165 |
| Total Comprehensive income / (loss) attributable to: | 94,211 | 1,567,165 |
| Owners of the parent | 30,020 | 1,067,430 |
| Non-controlling interests | 64,191 | 499,735 |
| (Values in thousands of EUR) | Notes | st Half 1 |
st Half 1 |
|---|---|---|---|
| 2015 | 2014 | ||
| OPENING BALANCE | 6,692 | 7,524 | |
| Profit / loss before taxes | 1,685 | 2,746 | |
| Amortisation / write-downs | 6,237 | 6,288 | |
| Accrual (+)/availment (-) of long term provisions and post employment benefits | ( 1,535) | ( 602) | |
| Paid income taxes | ( 1,437) | ( 2,124) | |
| Financial income (-) and financial charges (+) | 1,742 | 3,537 | |
| Change in operating assets and liabilities | ( 15,440) | ( 5,787) | |
| CASH FLOW (ABSORBED)/ GENERATED BY OPERATING ACTIVITY | (33) | ( 8,748) | 4,058 |
| Increase (-)/ decrease (+) in intangible fixed assets | ( 1,273) | ( 732) | |
| Increase (-)/ decrease (+) in tangible fixed assets | ( 2,942) | ( 1,805) | |
| Investments and write-downs (-)/ Disinvestments and revaluations (+) | ( 51) | ( 247) | |
| CASH FLOW (ABSORBED)/ GENERATED BY INVESTING ACTIVITY | (34) | ( 4,266) | ( 2,784) |
| Other variations in reserves and profits carried-forward of shareholders' equity | ( 5) | 916 | |
| Dividends paid | - | - | |
| Proceeds (+)/repayment (-) of financial payments | 17,288 | ( 739) | |
| Increase (-)/ decrease (+) in long term financial receivables | ( 1,256) | 168 | |
| Financial income (+) and financial charges (-) | ( 1,742) | ( 3,537) | |
| CASH FLOW (ABSORBED)/GENERATED BY FINANCING ACTIVITY | (35) | 14,285 | ( 3,192) |
| CLOSING BALANCE | 7,963 | 5,606 |
(*) Pursuant to Consob Resolution N. 15519 of 27 July 2006, the effects of related party transactions on the Consolidated statement of cash flows are presented in the specific scheme provided in the attachment IV and are further described in the paragraph "Related party transactions".
| (Values in thousands of EUR) | Share capital | Share premium reserve | Other reserves | Fair Value reserve | IAS reserve | Profit/(losses) carried-forward | Reamisurement of defined benefit plans reserve |
Net profit / loss for the Group | Translation reserve | shareholders' equity Group interest in |
shareholders' equity Minority interest in |
Total shareholders' equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCES AT 1 January 2014 | 25,371 | 71,240 | 31,765 | 7,901 | 11,459 | ( 14,198) | ( 833) | ( 3,198) | ( 2,733) | 126,774 | 16,644 | 143,418 |
| Allocation of 2013 income/(loss) | - | - | ( 5,284) | - | - | 2,086 | - | 3,198 | - | - | - | - |
| Dividends paid | - | - | - | - | - | - | - | - | - | - | - | - |
| Treasury stock (buyback)/sale | - | - | - | - | - | - | - | - | - | - | - | - |
| Total comprehensive income/(loss) at 30/06/14 | - | - | - | - | - | - | - | 150 | 917 | 1,067 | 500 | 1,567 |
| Other changes | - | - | - | - | - | - | - | - | - | |||
| BALANCES AT 30 June 2014 | 25,371 | 71,240 | 26,481 | 7,901 | 11,459 | ( 12,112) | ( 833) | 150 | ( 1,816) | 127,841 | 17,144 | 144,985 |
| (Values in thousands of EUR) | Share capital | Share premium reserve | Other reserves | Fair Value reserve | IAS reserve | Profit/(losses) carried-forward | Reamisurement of defined benefit plans reserve |
Net profit / loss for the Group | Translation reserve | shareholders' equity Group interest in |
shareholders' equity Minority interest in |
Total shareholders' equity |
| BALANCES AT 1 January 2015 | 25,371 | 71,240 | 26,481 | 7,901 | 11,459 | ( 12,112) | ( 1,229) | 2,742 | ( 1,796) | 130,057 | 17,915 | 147,972 |
| Allocation of 2014 income/(loss) | - | - | 35 | - | - | 2,707 | - | ( 2,742) | - | - | - | - |
| Dividends paid | - | - | - | - | - | - | - | - | - | - | - | - |
| Treasury stock (buyback)/sale | - | - | - | - | - | - | - | - | - | - | - | - |
| Total comprehensive income/(loss) at 30/06/15 | - | - | - | - | - | - | - | 35 | ( 5) | 30 | 64 | 94 |
| Other changes | - | - | - | - | - | - | - | - | - | - | - | - |
Aeffe Group operates worldwide in the luxury goods sector and is active in the design, production and distribution of a wide range of products that includes prêt-a-porter, footwear and leather goods.
The Group develops, produces and distributes, with a constant focus on the qualities of uniqueness and exclusivity, its own collections both under its own-label brands, including "Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino" and "Pollini", and licensed brands, which include "Blugirl", "Cedric Charlier" and "Ungaro". The Group also has licensed to key partners the production and distribution of other accessories and products with which it supplements its product range (perfumes, junior and children's lines, watches, sunglasses and other).
The Group's business is divided, based on the various product lines and brands it sells, into two segments: prêt-a-porter (which includes prêt-a-porter, lingerie and swimwear) and footwear and leather goods.
The Parent Company Aeffe, an Italian legal entity incorporated as a public limited company (società per azioni) based in San Giovanni in Marignano (RN), is currently listed in the – STAR Segment – of the MTA, the Italian Stock Exchange operated by Borsa Italiana.
Aeffe is controlled by Fratelli Ferretti Holding S.r.l..
These consolidated financial statements include the financial statements of the Parent Company Aeffe and its subsidiaries and the Group's equity interests in affiliated companies. They consist of the balance sheet, income statement, comprehensive income statement, cash flow statement, statement of changes in equity and these notes.
The financial statements are expressed in euro, since this is the currency in which most of the Group's transactions are conducted. Foreign operations are included in the consolidated financial statements according to the principles stated in the notes that follow.
The half-year condensed financial statements at 30 June 2015 have been prepared in accordance with International Financial Reporting Standards –"IFRS"- (the designation IFRS also includes all valid International Accounting Standards -"IAS"-, as well as all interpretations of the International Financial Reporting Interpretations Committee -"IFRIC"-, formerly the Standing Interpretations Committee -"SIC"-), issued by the International Accounting Standards Board –"IASB"– endorsed by the European Commission according to the procedures in art. 6 of (EC) Regulation n. 1606/2002 of the European Parliament and Council dated 19 July 2002. In particular, these half-year condensed financial statements have been prepared in accordance with IAS 34 – Interim Financial Reporting.
In the "Accounting policies" section are showed the international accounting principles adopted.
Unless otherwise indicated in the measurement bases described below, these consolidated financial statements were prepared in accordance with the historic cost principle.
The measurement bases were applied uniformly by all Group companies.
The scope of consolidation at 30 June 2015 includes the financial statements of the Parent Company Aeffe and those of the Italian and foreign companies in which Aeffe holds control either directly or through its subsidiaries and associates or in which it exerts a dominant influence.
If necessary, adjustments were made to the financial statements of subsidiaries to bring their accounting polices into line with those adopted by the Group.
Companies are consolidated using the line-by-line method. The principles adopted for the application of this method are essentially as follows:
Subsidiaries are enterprises controlled by the Company. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are consolidated from the date on which the Group acquires control and until the date when such control ceases.
The acquisition of subsidiaries is accounted for using the acquisition method. Acquisition cost is determined by adding together the fair values of the assets transferred, the shares issued and the liabilities assumed on the acquisition date, plus the costs directly associated with the acquisition. Any surplus acquisition cost over the Group's percentage share of the fair value of the identifiable assets, liabilities and contingent liabilities of the associate is recognised as goodwill.
If the Group's percentage share of the fair value of the identifiable assets, liabilities and contingent liabilities of the associate exceeds acquisition cost, the difference is immediately recorded in the income statement.
Intercompany balances, transactions, revenue and costs are eliminated in the consolidated statements.
Furthermore, intercompany business combinations are recognised by maintaining the same book value of assets and liabilities as previously recorded in the consolidated financial statements.
An associate is an enterprise in which the Group has significant influence, but has neither sole or joint control, by taking part in decisions regarding the company's financial and operating strategy.
Trading results and the assets and liabilities of associates are accounted for in the consolidated financial statements based on the equity method, except where they are classified as held for sale.
According to this method, equity interests in associates are recorded in the balance sheet at cost, adjusted to take account of changes following the acquisition of their net assets, excluding any loss in value of individual investments. Losses of associates that exceed the Group's percentage interest in them (including long-term receivables that essentially form part of the Group's net investment in the associate) are not recognised unless the Group has an obligation to cover them. The surplus acquisition cost over the parent's percentage share of the present value of the identifiable assets, liabilities and contingent liabilities of the associate on the acquisition date is recognised as goodwill. Goodwill is included in the carrying amount of the investment and is subjected to impairment tests. The historical cost deficit compared with the Group's percentage share of the fair value of the identifiable assets, liabilities and contingent liabilities of associates on the acquisition date is credited to the income statement in the year of acquisition. With reference to operations between a Group company and an associate, unrealised gains and losses are eliminated in equal measure to the Group's percentage interest in the associate, except for cases where the unrealised losses constitute evidence of impairment of the asset transferred.
The companies included in the scope of consolidation are listed in the following table:
| Company | Location | Currency | Share capital | Direct | Indirect |
|---|---|---|---|---|---|
| interest | interest | ||||
| Companies included in the scope of consolidation | |||||
| Italian companies | |||||
| Aeffe Retail S.p.A. | S.G. in Marignano (RN) Italy | EUR | 8,585,150 | 100% | |
| Clan Cafè S.r.l. | S.G. in Marignano (RN) Italy | EUR | 100,000 | 62,9% (iii) | |
| Moschino S.p.A. | S.G. in Marignano (RN) Italy | EUR | 20,000,000 | 70% | |
| Nuova Stireria Tavoleto S.r.l. | Tavoleto (PU) Italy | EUR | 10,400 | 100% | |
| Pollini S.p.A. | Gatteo (FC) Italy | EUR | 6,000,000 | 100% | |
| Pollini Retail S.r.l. | Gatteo (FC) Italy | EUR | 5,000,000 | 100% (i) | |
| Velmar S.p.A. | S.G. in Marignano (RN) Italy | EUR | 120,000 | 100% | |
| Foreign companies | |||||
| Aeffe France S.a.r.l. | Paris (FR) | EUR | 50,000 | 99.9% | |
| Aeffe UK Ltd. | London (GB) | GBP | 310,000 | 100% | |
| Aeffe USA Inc. | New York (USA) | USD | 600,000 | 100% | |
| Divè S.a. | Galazzano (RSM) | EUR | 260,000 | 75% | |
| Fashoff UK Ltd. | London (GB) | GBP | 1,550,000 | 70% (ii) | |
| Moschino Japan Inc. | Tokio (J) | JPY | 120,000,000 | 70% (ii) | |
| Moschino Korea Ltd. | Seoul (ROK) | KRW | 6,192,940,000 | 70% (ii) | |
| Moschino France S.a.r.l. | Paris (FR) | EUR | 50,000 | 70% (ii) | |
| Moschino Retail G.m.b.h. | Berlin (D) | EUR | 395,500 | 70% (ii) | |
| Moschino USA Inc. | New York (USA) | USD | 400,000 | 70% (ii) | |
| Aeffe Japan Inc. | Tokio (J) | JPY | 3,600,000 | 100.0% | |
| Bloody Mary Inc. | New York (USA) | USD | 100,000 | 70% (ii) | |
| Pollini Suisse S.a.g.l. | Chiasso (CH) | CHF | 20,000 | 100% (i) | |
| Pollini Austria G.m.b.h. | Vienna (A) | EUR | 35,000 | 100% (i) |
(i) 100% owned by Pollini Spa;
During the period the following operations have been completed:
a) Capital increase of EUR 89.000 for Moschino Retail G.m.b.h.;
The amounts in the financial statements of each Group enterprise are measured using the operating currency or the currency of the economic area in which the enterprise operates. These consolidated financial statements are presented in euro, which is the operating and reporting currency of the Parent Company.
Foreign currency transactions are converted into the operating currency at the exchange rate in force on the transaction date. Cash assets and liabilities denominated in foreign currencies are converted at the exchange rate in force on the balance sheet date. Any exchange rate differences arising from the elimination of these transactions or from the conversion of cash assets and liabilities are posted to the income statement. Noncash assets and liabilities in foreign currencies that are measured at fair value are converted at the exchange rates in force on the date on which the fair value was determined.
The financial statements of companies outside the euro-zone are translated into euro based on the following procedures:
The exchange rates used for the conversion into euro of the financial and equity statements of companies included in the scope of consolidation are listed in the following table:
| Currency description | Actual exchange rate | Average exchange | Actual exchange rate | Average exchange | Actual exchange rate | Average exchange |
|---|---|---|---|---|---|---|
| rate | rate | rate | ||||
| 30 June 2015 | I° sem 2015 | 31 December 2014 | 2014 | 30 June 2014 | I° sem 2014 | |
| United States Dollars | 1.1189 | 1.1158 | 1.2141 | 1.3285 | 1.3658 | 1.3705 |
| United Kingdom Pounds | 0.7114 | 0.7323 | 0.7789 | 0.8061 | 0.8015 | 0.8214 |
| Japanese Yen | 137.0100 | 134.2042 | 145.2300 | 140.3061 | 138.4400 | 140.3957 |
| South Korean Won | 1251.2700 | 1227.3118 | 1324.8000 | 1398.1424 | 1382.0400 | 1438.3833 |
| Swiss Franc | 1.0413 | 1.0567 | 1.2024 | 1.2146 | 1.2156 | 1.2214 |
As part of the options available under IAS 1 for the preparation of its economic and financial position, The Group has elected to adopt a balance sheet format that distinguishes between current and non-current assets and liabilities, and an income statement that classifies costs by type of expenditure, since this is deemed to reflect more closely its business activities. The cash flow statement is presented using the "indirect" format.
With reference to Consob Resolution n. 15519 dated 27 July 2006 regarding the format of the financial statements, additional schedules have also been presented for the income statement, the statement of financial position and the statement of cash flows in order to identify any significant transactions with related parties. This has been done to avoid any compromising the overall legibility of the main financial statements.
The accounting policies adopted in the preparation of this half-year financial report are the same used as those used in the preparation of the consolidated financial statement as of 31 December 2014, as described in the consolidated financial statements for the year ended 31 December 2014, except for the following interpretations and amendments to the accounting principles that have been mandatory since 1 January 2015 (unless otherwise indicated):
On 12 December 2013 the IASB issued the Annual Improvements to IFRSs 2010–2012 Cycle and Annual Improvements to IFRSs 2011–2013 Cycle. The most important topics addressed in these amendments are, among others, the definition of vesting conditions in IFRS 2 – Share based payment, the disclosure on judgment used in the aggregation of operating segments in IFRS 8 – Operating Segments, the identification and disclosure of a related party transaction that arise when a management entity provides key management personnel service to a reporting entity in IAS 24 - Related Party disclosures, the extension of the exclusion from the scope of IFRS 3 – Business Combinations to all types of joint arrangements and to clarify the application of certain exceptions in IFRS 13 – Fair value Measurement.
On 6 May 2014, the IASB issued amendments to IFRS 11 – Joint arrangements: Accounting for acquisitions of interests in joint operations, clarifying the accounting for acquisitions of an interest in a joint operation that constitutes a business. The amendments are effective, retrospectively, for annual periods beginning on or after 1 January 2016 with earlier application permitted.
On 24 July 2014 the IASB issued the final version of IFRS 9 - Financial Instruments.
There follows the main aspects of the new international accounting principle:
• Classification and Measurement
Classification determines how financial assets and financial liabilities are accounted for in financial statements and, in particular, how they are measured on an ongoing basis. IFRS 9 introduces a logical approach for the classification of financial assets, which is driven by cash flow characteristics and the business model in which an asset is held. This single, principle-based approach replaces existing rule-based requirements that are generally considered to be overly complex and difficult to apply. The new model also results in a single impairment model being applied to all financial instruments, thereby removing a source of complexity associated with previous accounting requirements.
• Impairment
During the financial crisis, the delayed recognition of credit losses on loans (and other financial instruments) was identified as a weakness in existing accounting standards. As part of IFRS 9, the IASB has introduced a new, expected-loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Standard requires entities to account for expected credit losses from when financial instruments are first recognised and to recognise full lifetime expected losses on a more timely basis. The IASB has already announced its intention to create a transition resource group to support stakeholders in the transition to the new impairment requirements.
• Hedge accounting
IFRS 9 introduces a substantially-reformed model for hedge accounting, with enhanced disclosures about risk management activity. The new model represents a significant overhaul of hedge accounting that aligns the accounting treatment with risk management activities, enabling entities to better reflect these activities in their financial statements. In addition, as a result of these changes, users of the financial statements will be provided with better information about risk management and the effect of hedge accounting on the financial statements.
• Own credit
IFRS 9 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. This change in accounting means that gains caused by the deterioration of an entity's own credit risk on such liabilities are no longer recognised in profit or loss. Early application of this improvement to financial reporting, prior to any other changes in the accounting for financial instruments, is permitted by IFRS 9.
On 12 August 2014 the IASB published Equity Method in Separate Financial Statements (Amendments to IAS 27). The amendments to IAS 27 will allow entities to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate financial statements. The amendments will help some jurisdictions move to IFRS for separate financial statements, reducing compliance costs without reducing the information available to investors.
The amendments respond to requests that the IASB had received during its inaugural public agenda consultation. The amendments are effective for annual periods beginning on or after 1 January 2016. Earlier application is permitted.
On 11 September 2014 the IASB published 'Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)'. The amendments address a conflict between the requirements of IAS 28 'Investments in Associates and Joint Ventures' and IFRS 10 'Consolidated Financial Statements' and clarify that in a transaction involving an associate or joint venture the extent of gain or loss recognition depends on whether the assets sold or contributed constitute a business. They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.
On 25 September 2014 the IASB published Annual Improvements to IFRSs 2012 – 2014 Cycle. The document introduces amendments to the following principles: IFRS 5, 'Non-current assets held for sale and discontinued operations'; IFRS 7, 'Financial instruments: Disclosures'; IAS 19, 'Employee benefits'; IAS 34, 'Interim financial reporting'. They will apply for annual periods beginning on or after 1 January 2016.
On 18 December 2014 the IASB published 'Disclosure Initiative (Amendments to IAS 1)'. The amendments aim at clarifying IAS 1 to address perceived impediments to preparers exercising their judgement in presenting their financial reports. They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted.
On 18 December 2014 the IASB published "Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10, IFRS 12 and IAS 28). The amendments address issues that have arisen in the context of applying the consolidation exception for investment entities. They are effective for annual periods beginning on or after 1 January 2016, with earlier application being permitted
At the date of these half-year condensed financial statements there are no indications that assets may be impaired.
The table below illustrates the breakdown and the changes of this item:
| (Values in thousands of EUR) | Brands | Key money | Other | Total |
|---|---|---|---|---|
| Net book value as of 01.01.15 | 92,456 | 34,917 | 554 | 127,927 |
| Increases | - | 1,084 | 244 | 1,328 |
| - increases externally acquired | - | 1,084 | 244 | 1,328 |
| - increases from business aggregations | - | - | - | - |
| Disposals | - | - | ( 56) | ( 56) |
| Translation diff. / other variations | - | ( 17) | 17 | - |
| Amortisation | ( 1,747) | ( 1,648) | ( 180) | ( 3,575) |
| Net book value as of 30.06.15 | 90,709 | 34,336 | 579 | 125,624 |
Changes in intangible fixed assets highlight the following variations:
This item includes the Group's own-label brands ("Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino", "Boutique Moschino", "Love Moschino", "Pollini", "Studio Pollini"). A breakdown of brands is given below:
| (Values in thousands of EUR) | Brand residual life | 31 December | ||
|---|---|---|---|---|
| 2015 | 2014 | |||
| Alberta Ferretti | 28 | 3,463 | 3,526 | |
| Moschino | 30 | 50,514 | 51,478 | |
| Pollini | 26 | 36,732 | 37,452 | |
| Total | 90,709 | 92,456 |
Key money refers to the amounts paid by the Group to take over leases relating to directly managed stores or, in the case of business combinations, the fair value of these assets at the time of acquisition.
The Group, up to the year 2008, even on the stock of valuations drawn up by independent experts, pointed out the scarce significance of the deadline attributable to the term of the leases. Indeed, to this regard the safeguards given to the lessee by the market routine and by specific legal provisions, which are combined with a strategy of progressive further expansion of the network carried forward by the companies of the
Group that usually renews the leases before their natural expiration and regardless of the intention to continue using the locations as Group boutiques, in view of the value attributable to the commercial positions concerned.
Following the change of the key money market, the Group deemed it proper to introduce a change of estimate on their useful life, switching from an indefinite useful life to a finite useful life.
Starting from 2009, a reversed trend has been noted. Although not generalised, it has led several of the lessors of the market to ask that the contract be terminated as the expiration date draws near. Even if the most recent transactions carried out by the Group are reassuring with regard to the entire recoverability of the original value of the key money, by virtue of the new market definition, the directors prudentially deemed it correct to change the estimate of useful life. Based on the experience of the renewals obtained from the lessors in past financial years, the directors deemed it fitting to estimate a useful life corresponding to the residual term of the contract, and generally plan a renewal for another 6 years, considering a final end value equal to the amounts due by way of indemnity for taking over the lease if provided for by the national regulations.
The item other mainly includes software licences.
The table below illustrates the breakdown and the changes of this item:
| (Values in thousands of EUR) | Lands | Buildings | improvements Leasehold |
machinery Plant and |
Industrial and commercial equipment |
Other tangible assets |
Total |
|---|---|---|---|---|---|---|---|
| Net book value as of 01.01.15 | 16,828 | 23,688 | 16,178 | 2,953 | 309 | 3,815 | 63,771 |
| Increases | 130 | 3 | 1,626 | 139 | 81 | 675 | 2,654 |
| Disposals | - | - | ( 59) | ( 15) | ( 5) | ( 72) | ( 151) |
| Translation diff. / other variations | - | - | 399 | 1 | - | 39 | 439 |
| Depreciation | - | ( 276) | ( 1,371) | ( 427) | ( 58) | ( 530) | ( 2,662) |
| Net book value as of 30.06.15 | 16,958 | 23,415 | 16,773 | 2,651 | 327 | 3,927 | 64,051 |
Tangible fixed assets are changed as follows:
This item includes holdings represented by the cost.
The value at 30 June 2015 is related to the long term portion of financial receivables generated by the sale of the real estate properties owned by Aeffe USA to the company Ferrim USA, 100% owned by Ferrim S.r.l.. The variation is determined by the effect of the exchange rate between US and Euro. On that credit accrues interest.
This item mainly includes receivables for security deposits relating to commercial leases and receivables related to the income recognized by Woollen Co., Ltd. to Aeffe Group as a result of the reorganization of the Japanese Distribution Network.
The table below illustrates the breakdown of this item at 30 June 2015 and at 31 December 2014:
| (Values in thousands of EUR) | Receivables | Liabilities | |||
|---|---|---|---|---|---|
| 30 June 2015 |
31 December 2014 |
30 June 2015 |
31 December 2014 |
||
| Tangible fixed assets | - | - | ( 63) | ( 88) | |
| Intangible fixed assets | 3 | 3 | ( 169) | ( 169) | |
| Provisions | 1,695 | 1,720 | - | - | |
| Costs deductible in future periods | 4,887 | 5,046 | - | - | |
| Income taxable in future periods | 69 | 579 | ( 1,497) | ( 1,292) | |
| Tax losses carried forward | 4,100 | 4,090 | - | - | |
| Other | 6 | 6 | ( 67) | ( 63) | |
| Tax assets (liabilities) from transition to IAS | 1,921 | 1,924 | ( 34,870) | ( 35,217) | |
| Total | 12,681 | 13,368 | ( 36,666) | ( 36,829) |
Changes in temporary differences during the period are illustrated in the following table:
| (Values in thousands of EUR) | Opening balance |
Differences arising on translation |
Recorded in the income |
Other | Closing balance |
|---|---|---|---|---|---|
| statement | |||||
| Tangible fixed assets | ( 88) | ( 6) | 31 | - | ( 63) |
| Intangible fixed assets | ( 166) | - | - | - | ( 166) |
| Provisions | 1,720 | 16 | ( 39) | ( 2) | 1,695 |
| Costs deductible in future periods | 5,046 | 2 | ( 161) | - | 4,887 |
| Income taxable in future periods | ( 713) | - | ( 715) | - | ( 1,428) |
| Tax losses carried forward | 4,090 | 113 | 1,056 | ( 1,159) | 4,100 |
| Other | ( 57) | ( 5) | 20 | ( 19) | ( 61) |
| Tax assets (liabilities) from transition to IAS | ( 33,293) | - | 389 | ( 45) | ( 32,949) |
| Total | ( 23,461) | 120 | 581 | ( 1,225) | ( 23,985) |
The negative variation of EUR 1,225 thousand in the column "Other" mainly refers to the compensation of the tax payables for IRES of the period matured in some of the Group's subsidiaries with the receivable for deferred tax generated in Aeffe Spa as a consequence of the adhesion of the subsidiaries to the fiscal consolidation.
Deferred tax assets related to costs deductible in future periods mainly relate to the deferred taxation on provisions for doubtful investments and for risks and charges related to Moschino Japan Ltd. and Bloody Mary Inc., both subsidiaries of Moschino Spa, and to Aeffe Japan Inc., a subsidiary of Aeffe Spa.
Deferred tax assets have been determined estimating the future recoverability of such activities.
This item comprises:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Raw, ancillary and consumable materials | 15,056 | 14,556 | 500 | 3.4% |
| Work in progress | 8,099 | 8,339 | ( 240) | (2.9%) |
| Finished products and goods for resale | 70,600 | 60,969 | 9,631 | 15.8% |
| Advance payments | 132 | 3 | 129 | 4,300.0% |
| Total | 93,887 | 83,867 | 10,020 | 11.9% |
Inventories of raw materials and work in progress mainly relate to the production of the Autumn/Winter 2015 collections, while finished products mainly concern the Spring/Summer 2015 and the Autumn/Winter 2015 collections and the Spring/Summer 2016 sample collections.
This item is illustrated in details in the following table:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Trade receivables (Allowance for doubtfull account) |
39,590 ( 1,406) |
38,487 ( 1,602) |
1,103 196 |
2.9% (12.2%) |
| Total | 38,184 | 36,885 | 1,299 | 3.5% |
Trade receivables amount to EUR 38,184 thousand at 30 June 2015, showing an increase of 3.5% compared with the amount at 31 December 2014 (EUR 36,885 thousand).
Management considers that the fair value of amounts due from customers approximates their book value.
The allowance for doubtful accounts is determined by reference to a detailed analysis of the available information and, in general, is based on historical trends.
This item in illustrated in details in the following table:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| VAT | 5,283 | 4,274 | 1,009 | 23.6% |
| Corporate income taxes (IRES) | 1,677 | 1,660 | 17 | 1.0% |
| Local business tax (IRAP) | 637 | 288 | 349 | 121.2% |
| Amounts due by tax authority for withheld taxes | 1,153 | 985 | 168 | 17.1% |
| Other tax receivables | 1,316 | 1,324 | ( 8) | (0.6%) |
| Total | 10,066 | 8,531 | 1,535 | 18.0% |
As of 30 June 2015, the Group's tax receivables amount to EUR 10,066 thousand, recording an increase of EUR 1,535 thousand compared to 31 December 2014, mainly due to the increase of VAT receivable.
This item includes:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Bank and post office deposits | 7,450 | 6,087 | 1,363 | 22.4% |
| Cheques | 48 | 31 | 17 | 54.8% |
| Cash in hand | 465 | 574 | ( 109) | (19.0%) |
| Total | 7,963 | 6,692 | 1,271 | 19.0% |
Bank and postal deposits represent the nominal value of the current account balances with credit institutions, including interest accrued on the balance sheet date. Cash in hand and equivalents represent the nominal value of the cash held on the balance sheet date.
The increase in cash and cash equivalent, recorded at 30 June 2015 compared with the amount recorded at 31 December 2014, is EUR 1,271 thousand. About the reason of this variation refer to the Statement of Cash Flows.
The item is compared with the respective value at 31 December 2014:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Financial receivables | 2,216 | 1,000 | 1,216 | 121.6% |
| Total | 2,216 | 1,000 | 1,216 | 121.6% |
The value at 30 June 2015 is mainly related to the short term portion of the financial receivable generated by the sale of the real estate properties owned by Aeffe USA to the company Ferrim USA, a 100% subsidiary of the company Ferrim Srl. On that credit accrues interest.
This caption comprises:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Credits for prepaid costs | 20,354 | 17,749 | 2,605 | 14.7% |
| Advances for royalties and commissions | 905 | 761 | 144 | 18.9% |
| Advances to suppliers | 258 | 618 | ( 360) | (58.3%) |
| Accrued income and prepaid expenses | 3,495 | 2,421 | 1,074 | 44.4% |
| Other | 2,538 | 3,332 | ( 794) | (23.8%) |
| Total | 27,550 | 24,881 | 2,669 | 10.7% |
Other current receivables increase by EUR 2,669 thousand mainly for the increase of prepaid leases and credits for prepaid costs generated by the seasonality of the business and by the increase of variable costs suspended at the end of June as a consequence of the good performances of sales and orders.
Credits for prepaid costs relate to the costs incurred to design and make samples for the Spring/Summer 2016 collections, which the corresponding revenues from sales have not been realised yet for and the partial suspension of the same costs for the Autumn/Winter 2015 collections.
This item is illustrated in details in the following table:
| (Values in thousands of EUR) | 30 June | 31 December | Change |
|---|---|---|---|
| 2015 | 2014 | ∆ | |
| Other fixed assets | 437 | 437 | - |
| Total Assets | 437 | 437 | 0 |
Described below are the main categories of shareholders' equity at 30 June 2015, while the corresponding variations are described in the prospect of shareholders' equity.
| (Values in thousands of EUR) | 30 June | 31 December | Change |
|---|---|---|---|
| 2015 | 2014 | ∆ | |
| Share capital | 25,371 | 25,371 | - |
| Share premium reserve | 71,240 | 71,240 | - |
| Other reserves | 26,516 | 26,481 | 35 |
| Fair value reserve | 7,901 | 7,901 | - |
| IAS reserve | 11,459 | 11,459 | - |
| Profits / (losses) carried-forward | ( 9,405) | ( 12,112) | 2,707 |
| Reamisurement of defined benefit plans reserve | ( 1,229) | ( 1,229) | - |
| Net profit / (loss) for the Group | 35 | 2,742 | ( 2,707) |
| Translation reserve | ( 1,801) | ( 1,796) | ( 5) |
| Minority interest | 17,979 | 17,915 | 64 |
| Total | 148,066 | 147,972 | 94 |
Share capital as of 30 June 2015, totally subscribed and paid, (gross of treasury shares) totals EUR 26,841 thousand), and is represented by 107,362,504 shares, par value EUR 0.25 each. At 30 June 2015 the Parent Company holds 5,876,878 treasury shares, representing the 5.5% of its share capital.
There are no shares with restricted voting rights, without voting rights or with preferential rights. The number of outstanding shares is not changed during the period.
The share premium reserve amounts to EUR 71,240 thousand and it remains unchanged since 31 December 2014.
The changes in these reserves reflect the allocation of prior-year profit of the Parent Company.
The fair value reserve derives from the application of IAS 16 in order to measure the land and buildings owned by the Company at their fair value, as determined with reference to an independent appraisal.
The IAS reserve, formed on the first-time adoption of IFRS, reflects the differences in value that emerged on the transition from ITA GAAP to IFRS. The differences reflected in this equity reserve are stated net of tax effect, as required by IFRS 1. Each difference was allocated on a pro rata basis to minority interests.
The caption Profits/(losses) carried-forward increase mainly as a consequence of the consolidated result recorded during the year ended at 31 December 2014.
The reamisurement of defined benefit plans reserve amounts to EUR -1.229 thousand and it remains unchanged since 31 December 2014.
The translation reserve amounts to EUR -1,801 thousand and is related to the conversion of companies' financial statements in other currency than EUR.
The variation is due to the portion of result for the period ended at 30 June 2014 attributable to the minority shareholders.
Minority interests represent the shareholders' equity of consolidated companies owned by other shareholders and include the corresponding IAS reserve.
Provisions are illustrated in the following statement:
| (Values in thousands of EUR) | 31 December | Increases | Decreases | 30 June |
|---|---|---|---|---|
| 2014 | 2015 | |||
| Pensions and similar obligations Other |
1,010 1,037 |
33 30 |
( 252) ( 890) |
791 177 |
| Total | 2,047 | 63 | ( 1,142) | 968 |
The supplementary clientele severance indemnity fund is determined based on an estimate of the liability relating to the severance of agency contracts, taking account of statutory provisions and any other relevant factor, such as statistical data, average duration of agency contracts and their rate of turnover. The item is calculated based on the actual value of the outflow necessary to extinguish the obligation. The decrease of EUR 252 thousand is related to the liquidation of an agent.
The decrease in the caption Other is related to the variation of the provision for future risks and charges, that increases for the estimation of costs requested by a former consultant to a company of the Group.
Potential tax liabilities for which no reserves have been established, since it is not considered probable that they will give rise to a liability for the Group, are described in the paragraph "Contingent liabilities".
The severance indemnities payable on a deferred basis to all employees of the Group are deemed to represent a defined benefits plan (IAS 19), since the employer's obligation does not cease on payment of the contributions due on the remuneration paid, but continue until termination of the employment relationship.
For plans of this type, the standard requires the amount accrued to be projected forward in order to determine the amount that will be paid on the termination of employment, based on an actuarial valuation that takes account of employee turnover, likely future pay increases and any other applicable factors. This methodology does not apply to those employees whose severance indemnities are paid into approved supplementary pension funds which, in the circumstances, are deemed to represent defined contributions plans.
Starting from 1 January 2007, the Finance Law and related enabling decrees introduced significant changes to the regulations governing severance indemnities, including the ability of employees to choose how their individual severance indemnities will be allocated. In particular, employees can now allocate the new amounts accrued to approve pension plans or decide to retain them with the employer (which must pay the related severance contributions into a treasury account managed by INPS).
| (Values in thousands of EUR) | 31 December | Increases | Decreases/ Other variations |
30 June |
|---|---|---|---|---|
| 2014 | 2015 | |||
| Post employment benefits | 7,458 | 72 | ( 529) | 7,001 |
| Total | 7,458 | 72 | ( 529) | 7,001 |
Changes in the provision are illustrated in the following statement:
The entry decreases/other changes includes the decrease for the liquidation of the post employment benefits.
The following table contains details of long-term borrowings:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Loans from financial institutions | 17,627 | 12,680 | 4,947 | 39.0% |
| Amounts due to other creditors | 72 | 72 | - | n.a. |
| Total | 17,699 | 12,752 | 4,947 | 38.8% |
The entry "Loans from financial institutions" relate to the portion of bank loans due beyond 12 months. This entry mainly refers to a ten-year mortgage loan disbursed in November 2013 to the Parent company Aeffe Spa for an amount of EUR 11.5 million on a real estate based in Gatteo, headquarter of the subsidiary Pollini Spa. It should be noted that such real estate from 2002 to 2012 was object of a lease-back operation.
All other operations are unsecured loans and bank finance not assisted by any form of security and they are not subject to special clauses, except for the early repayment clauses normally envisaged in commercial practice. Furthermore, there are no covenants to comply with specific financial terms or negative pledges.
The following table contains details of bank loans as of 30 June 2015, including the current portion and long term portion:
| (Values in thousands of EUR) | Total amount | Current portion | Long term portion |
|---|---|---|---|
| Bank borrowings | 22,306 | 4,679 | 17,627 |
| Total | 22,306 | 4,679 | 17,627 |
The total due beyond five years amount to EUR 4,466 thousand.
This caption equal to EUR 14,511 thousand mainly refers to the debt due by the subsidiary Moschino S.p.A. in relation to an interest-free shareholder loan from Sinv S.p.A.. This liability is treated as a payment on capital account and arose on the purchase of Moschino S.p.A. by the Parent Company and Sinv S.p.A. in 1999, divided into proportional shares according to the equity interest held the Parent Company and Sinv S.p.A. in Moschino S.p.A..
The item is compared with the respective value at 31 December 2014:
| Total | 51,917 | 55,052 | ( 3,135) | (5.7%) |
|---|---|---|---|---|
| Trade payables | 51,917 | 55,052 | ( 3,135) | (5.7%) |
| 2015 | 2014 | ∆ | % | |
| (Values in thousands of EUR) | 30 June | 31 December | Change |
Trade payables are due within 12 months and concern debts for supplying goods and services.
Tax payables are analysed in comparison with the related balances as of 31 December 2014 in the following table:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Local business tax (IRAP) | 210 | 222 | ( 12) | (5.4%) |
| Amounts due to tax authority for withheld taxes | 2,012 | 2,364 | ( 352) | (14.9%) |
| VAT due to tax authority | 482 | 399 | 83 | 20.8% |
| Other | 46 | 140 | ( 94) | (67.1%) |
| Total | 2,750 | 3,125 | ( 375) | (12.0%) |
Tax payables decrease of EUR 375 thousand compared with 31 December 2014, mainly for lower withheld taxes on employees for the thirteenth monthly pay accrual which has no equivalent as of 31 December 2014.
A breakdown of this item is given below:
| (Values in thousands of EUR) | 30 June | 31 December | Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Due to banks | 92,565 | 80,224 | 12,341 | 15.4% |
| Total | 92,565 | 80,224 | 12,341 | 15.4% |
Current bank debts include advances granted by credit institutions, current loans and the current portion of long-term financing commitments. Advances mainly consist of withdrawals from short-term credit facilities to finance the working capital requirement. Current loans (due within 12 months) are loans granted by banks to the Parent Company and to other Group companies.
Other current liabilities are analysed on a comparative basis in the following table:
| (Values in thousands of EUR) | 30 June | 31 December | Change | ||
|---|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | ||
| Due to total security organization | 3,105 | 3,015 | 90 | 3.0% | |
| Due to employees | 6,855 | 5,011 | 1,844 | 36.8% | |
| Trade debtors - credit balances | 2,579 | 1,529 | 1,050 | 68.7% | |
| Accrued expenses and deferred income | 2,234 | 2,163 | 71 | 3.3% | |
| Other | 2,334 | 2,601 | ( 267) | (10.3%) | |
| Total | 17,107 | 14,319 | 2,788 | 19.5% |
The entry Other liabilities records an increase of EUR 2,788 thousand compared to 31 December 2014.
The increase in the amount due to employees is mainly assignable to the presence of the thirteenth monthly pay accrual as of 30 June 2015 which has no equivalent as of 31 December 2014.
The increase of trade debtors is mainly related to the seasonality of the business.
The caption accrued expenses and deferred income mainly refers to the deferred income relating to the deferment to the next half year of the revenues not of competence. The other liabilities mainly include commission payables.
In order to apply the IFRS 8 the Group has considered to delineate as operative sectors the same used by IAS 14 Segment reporting: Prêt-à porter Division and footwear and leather goods Division. Such decision has been taken because they represent business activities from which the entity may earn revenues and incur expenses, whose operating result are regularly reviewed by the entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
Prêt-à porter Division is mainly represented by the companies Aeffe, Moschino and Velmar, operating in the design, production and distribution of luxury prêt-à porter and lingerie, beachwear and loungewear collections.
In terms of prêt-à porter collections, the activity is carried out by Aeffe, both for the production of the Group's own-label brands ("Alberta Ferretti", "Philosophy di Lorenzo Serafini", "Moschino", "Boutique Moschino" and "Love Moschino") and brands licensed from other companies (such as "Blugirl", "Cedric Charlier" and "Ungaro"). Aeffe also handles the distribution of all Division products, which takes place via the retail channel through subsidiaries and via the wholesale channel.
Velmar manufactures and distributes lingerie and swimwear collections, and specifically men's/women's lingerie, underwear, beachwear and loungewear. Collections are produced and distributed under the Group's own-label brands such as "Moschino", and under third-party licensed brands such as "Blugirl".
The Prêt-a-porter Division also manages licensing agreements granted to other companies to manufacture Aeffe and Moschino branded product lines such as the "Moschino" brand licensing agreement relating to the love line, "Moschino" branded perfumes and "Moschino" branded sunglasses.
The footwear and leather goods Division, which is composed of Pollini and its subsidiaries, mainly handles the design, production and distribution of footwear, small leather goods, bags and matching accessories made from exclusive materials.
The operating activity is mainly carried out by Pollini, which directly handles the design, production and distribution of own-label products, as well as the production and distribution of brands licensed by Group companies. The footwear and leather goods division also manages licensing agreements granted to other companies to manufacture "Pollini" products such as umbrellas, foulards and ties.
The following tables indicate the main economic data for the first half-year 2015 and 2014 of the Prêt-à porter and Footwear and leather goods Divisions:
| (Values in thousand of EUR) | Prêt-à porter Division Footwear and leather | Elimination of | Total | |
|---|---|---|---|---|
| goods Division | intercompany | |||
| 1st Half 2015 | transactions | |||
| SECTOR REVENUES | 99,537 | 46,033 | ( 16,847) | 128,723 |
| Intercompany revenues | ( 3,428) | ( 13,419) | 16,847 | - |
| Revenues with third parties | 96,109 | 32,614 | - | 128,723 |
| Gross operating margin (EBITDA) | 5,534 | 4,230 | - | 9,764 |
| Amortisation | ( 4,847) | ( 1,390) | - | ( 6,237) |
| Other non monetary items: | ||||
| Write-downs | ( 101) | - | ( 101) | |
| Net operating profit / loss (EBIT) | 687 | 2,739 | - | 3,426 |
| Financial income | 755 | 8 | ( 275) | 488 |
| Financial expenses | ( 1,867) | ( 637) | 275 | ( 2,229) |
| Profit / loss before taxes | ( 425) | 2,110 | - | 1,685 |
| Income taxes | ( 812) | ( 774) | - | ( 1,586) |
| Net profit / loss | ( 1,237) | 1,336 | - | 99 |
| (Values in thousand of EUR) | Prêt-à porter Division Footwear and leather | Elimination of | Total | |
|---|---|---|---|---|
| 1st Half 2014 | goods Division | intercompany | ||
| transactions | ||||
| SECTOR REVENUES | 94,823 | 37,729 | ( 11,487) | 121,065 |
| Intercompany revenues | ( 2,767) | ( 8,720) | 11,487 | - |
| Revenues with third parties | 92,056 | 29,009 | - | 121,065 |
| Gross operating margin (EBITDA) | 10,656 | 1,914 | - | 12,570 |
| Amortisation | ( 4,619) | ( 1,421) | - | ( 6,040) |
| Other non monetary items: | ||||
| Write-downs | ( 184) | ( 63) | - | ( 247) |
| Net operating profit / loss (EBIT) | 5,853 | 430 | - | 6,283 |
| Financial income | 547 | 11 | ( 437) | 121 |
| Financial expenses | ( 3,168) | ( 927) | 437 | ( 3,658) |
| Profit / loss before taxes | 3,232 | ( 486) | - | 2,746 |
| Income taxes | ( 2,096) | - | - | ( 2,096) |
| Net profit / loss | 1,136 | ( 486) | - | 650 |
The following tables indicate the main patrimonial and financial data at 30 June 2015 and 31 December 2014 of the Prêt-à porter and Footwear and leather goods Divisions:
| (Values in thousand of EUR) | Prêt-à porter Division | Footwear and leather | Elimination of | Total |
|---|---|---|---|---|
| 30 June 2015 | goods Division | intercompany transactions |
||
| SECTOR ASSETS | 305,688 | 114,000 | ( 53,185) | 366,503 |
| of which non-current assets (*) | ||||
| Intangible fixed assets | 82,653 | 42,971 | - | 125,624 |
| Tangible fixed assets | 60,745 | 3,306 | - | 64,051 |
| Other non-current assets | 10,717 | 716 | ( 4,442) | 6,991 |
| OTHER ASSETS | 19,241 | 3,507 | - | 22,748 |
| CONSOLIDATED ASSETS | 324,929 | 117,507 | ( 53,185) | 389,251 |
(*) Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts
| (Values in thousand of EUR) 30 June 2015 |
Prêt-à porter Division | Footwear and leather goods Division |
Elimination of intercompany transactions |
Total |
|---|---|---|---|---|
| SECTOR LIABILITIES | 179,701 | 75,253 | ( 53,185) | 201,769 |
| OTHER LIABILITIES | 25,769 | 13,647 | - | 39,416 |
| CONSOLIDATED LIABILITIES | 205,470 | 88,900 | ( 53,185) | 241,185 |
| (Values in thousand of EUR) 31 December 2014 |
Prêt-à porter Division | Footwear and leather goods Division |
Elimination of intercompany transactions |
Total |
|---|---|---|---|---|
| SECTOR ASSETS | 295,549 | 109,518 | ( 53,108) | 351,959 |
| of which non-current assets (*) | ||||
| Intangible fixed assets | 84,097 | 43,830 | - | 127,927 |
| Tangible fixed assets | 60,553 | 3,218 | - | 63,771 |
| Other non-current assets | 10,338 | 604 | ( 4,442) | 6,500 |
| OTHER ASSETS | 18,819 | 3,080 | - | 21,899 |
| CONSOLIDATED ASSETS | 314,368 | 112,598 | ( 53,108) | 373,858 |
(*) Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts
| (Values in thousand of EUR) 31 December 2014 |
Prêt-à porter Division | Footwear and leather goods Division |
Elimination of intercompany transactions |
Total |
|---|---|---|---|---|
| SECTOR LIABILITIES | 167,711 | 71,330 | ( 53,108) | 185,933 |
| OTHER LIABILITIES | 26,040 | 13,914 | - | 39,954 |
| CONSOLIDATED LIABILITIES | 193,751 | 85,244 | ( 53,108) | 225,887 |
The following table indicates the revenues for the first half-year 2015 and 2014 divided by geographical area:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |||
|---|---|---|---|---|---|---|
| 2015 | % | 2014 | % | ∆ | % | |
| Italy | 57,134 | 44.4% | 52,925 | 43.7% | 4,209 | 8.0% |
| Europe (Italy and Russia excluded) | 28,657 | 22.3% | 28,416 | 23.5% | 241 | 0.8% |
| Russia | 4,666 | 3.6% | 9,482 | 7.8% | ( 4,816) | (50.8%) |
| United States | 9,729 | 7.6% | 7,100 | 5.9% | 2,629 | 37.0% |
| Japan | 3,889 | 3.0% | 3,223 | 2.7% | 666 | 20.6% |
| Rest of the World | 24,648 | 19.1% | 19,919 | 16.4% | 4,729 | 23.7% |
| Total | 128,723 | 100.0% | 121,065 | 100.0% | 7,658 | 6.3% |
In the first semester of 2015, Aeffe consolidated revenues amount to EUR 128,722 thousand compared to EUR 121,065 thousand in the first semester of 2014, with a 6.3% increase at current exchange rates (4.4% at constant exchange rates).
The revenues of the prêt-à-porter division increase by 5.0% (2.5% at constant exchange rates) to EUR 99,537 thousand.
The revenues of the footwear and leather goods division increase by 22.0% to EUR 46,033 thousand, before interdivisional eliminations.
This item comprises:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Extraordinary income | 472 | 500 | ( 28) | (5.6%) |
| Other income | 2,815 | 1,526 | 1,289 | 84.5% |
| Total | 3,287 | 2,026 | 1,261 | 62.2% |
In 1stH 2015, the caption extraordinary income, composed by recovery of receivables from bankrupt customers, time expiry of receivables and payables that arose in prior years, decreases by 28 thousand compared to the previous semester.
The caption other income, which amounts to EUR 2,815 thousand, mainly refers to exchange gains on commercial transaction, rental income, sales of raw materials and packaging. The variation of EUR 1,289 thousand compared to the previous semester is mainly due to the increase of exchange gains on commercial transaction.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Raw, ancillary and consumable materials and goods for | ||||
| resale | 48,902 | 42,642 | 6,260 | 14.7% |
| Total | 48,902 | 42,642 | 6,260 | 14.7% |
This item mainly includes costs for the acquisition of raw materials such as fabrics, threads, skins and accessories, purchases of finished products for resale (products sold) and packaging.
This item comprises:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Subcontracted work | 13,056 | 10,953 | 2,103 | 19.2% |
| Consultancy fees | 6,709 | 6,240 | 469 | 7.5% |
| Advertising | 5,265 | 3,429 | 1,836 | 53.5% |
| Commission | 2,313 | 2,204 | 109 | 4.9% |
| Transport | 2,685 | 1,975 | 710 | 35.9% |
| Utilities | 1,096 | 1,098 | ( 2) | (0.2%) |
| Directors' and auditors' fees | 1,384 | 1,358 | 26 | 1.9% |
| Insurance | 276 | 291 | ( 15) | (5.2%) |
| Bank charges | 794 | 801 | ( 7) | (0.9%) |
| Travelling expenses | 1,102 | 1,003 | 99 | 9.9% |
| Other services | 2,880 | 2,661 | 219 | 8.2% |
| Total | 37,560 | 32,013 | 5,547 | 17.3% |
Costs of services increase from EUR 32,013 thousand in the 1stH 2014 to EUR 37,560 thousand in the 1stH 2015, up 17.3%. The increase is mainly due to:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Rental expenses | 10,092 | 8,957 | 1,135 | 12.7% |
| Royalties | 910 | 1,086 | ( 176) | (16.2%) |
| Hire charges and similar | 369 | 412 | ( 43) | (10.4%) |
| Total | 11,371 | 10,455 | 916 | 8.8% |
The caption costs for use of third parties assets increases of EUR 916 thousand from EUR 10,455 thousand in the 1stH 2014 to EUR 11,371 thousand in the 1stH 2015.
Such increase is mainly due to new openings realized in 2015 partially compensated by lower royalties related to brands under license.
The item includes:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Labour costs | 30,728 | 29,206 | 1,522 | 5.2% |
| Total | 30,728 | 29,206 | 1,522 | 5.2% |
Labour costs increase from EUR 29,206 thousand in 1stH 2014 to EUR 30,728 thousand in 1stH 2015 with an incidence on revenues which decreases from 24.1% in the first semester 2014 to 23.9% in the first semester 2015.
| Average number of employees by category | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Workers | 229 | 247 | ( 18) | (7.3%) |
| Office staff-supervisors | 1,019 | 976 | 43 | 4.4% |
| Executive and senior managers | 23 | 25 | ( 2) | (8.0%) |
| Total | 1,271 | 1,248 | 23 | 1.8% |
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Taxes | 346 | 326 | 20 | 6.1% |
| Gifts | 56 | 103 | ( 47) | (45.6%) |
| Contingent liabilities | 396 | 356 | 40 | 11.2% |
| Write-down of current receivables | 58 | 48 | 10 | 20.8% |
| Foreign exchange losses | 1,395 | 924 | 471 | 51.0% |
| Other operating expenses | 364 | 240 | 124 | 51.7% |
| Total | 2,615 | 1,997 | 618 | 30.9% |
The caption other operating expenses amounts to EUR 2,615 thousand, with an increase of 30.9% compared with EUR 1,997 thousand in the 1stH 2014, mainly for an increase of foreign exchange lossses.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Amortisation of intangible fixed assets | 3,575 | 3,429 | 146 | 4.3% |
| Depreciation of tangible fixed assets | 2,662 | 2,612 | 50 | 1.9% |
| Write-downs | 100 | 247 | ( 147) | (59.5%) |
| Total | 6,337 | 6,288 | 49 | 0.8% |
The entry is in line with the previous semester.
This item includes:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Interest income | 58 | 80 | ( 22) | (27.5%) |
| Foreign exchange gains | 425 | 24 | 401 | 1,670.8% |
| Financial discounts | 4 | 17 | ( 13) | (76.5%) |
| Financial income | 487 | 121 | 366 | 302.5% |
| Bank interest expenses | 1,793 | 2,702 | ( 909) | (33.6%) |
| Other interest expenses | 138 | 86 | 52 | 60.5% |
| Foreign exchange losses | 139 | 717 | ( 578) | (80.6%) |
| Other expenses | 159 | 153 | 6 | 3.9% |
| Financial expenses | 2,229 | 3,658 | ( 1,429) | (39.1%) |
| Total | 1,742 | 3,537 | ( 1,795) | (50.7%) |
The decrease in financial income/expenses amounts to EUR 1,795 thousand. Such effect is substantially linked to:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Change | |
|---|---|---|---|---|
| 2015 | 2014 | ∆ | % | |
| Current income taxes | 2,122 | 2,997 | ( 875) | (29.2%) |
| Deferred income/(expenses) taxes | ( 581) | ( 879) | 298 | (33.9%) |
| Taxes related to previous years | 45 | ( 23) | 68 | n.a. |
| Total income taxes | 1,586 | 2,095 | ( 509) | (24.3%) |
Details of deferred tax assets and liabilities and changes in this item are described in the paragraph on deferred tax assets and liabilities.
The reconciliation between actual and theoretical taxation for the 1stH 2015 and 2014 is illustrated in the following table:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
|---|---|---|
| 2015 | 2014 | |
| Profit before taxes | 1,685 | 2,746 |
| Theoretical tax rate | 27.5% | 27.5% |
| Theoretical income taxes (IRES) | 463 | 755 |
| Fiscal effect | ( 264) | ( 30) |
| Effect of foreign tax rates | 918 | 543 |
| Total income taxes excluding IRAP (current and deferred) | 1,117 | 1,268 |
| IRAP (current and deferred) | 469 | 827 |
| Total income taxes (current and deferred) | 1,586 | 2,095 |
This reconciliation of the theoretical and effective tax rates does not take account of IRAP, given that it does not use profit before taxes to calculate the taxable amount. Accordingly, the inclusion of IRAP in the reconciliation would generate distorting effects between years.
The cash flow generated during the first half of 2015 is EUR 1,271 thousand.
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
|
|---|---|---|---|
| 2015 | 2014 | ||
| OPENING BALANCE (A) | 6,692 | 7,524 | |
| Cash flow (absorbed)/ generated by operating activity (B) | ( 8,748) | 4,058 | |
| Cash flow (absorbed)/ generated by investing activity (C) | ( 4,266) | ( 2,784) | |
| Cash flow (absorbed)/ generated by financing activity (D) | 14,285 | ( 3,192) | |
| Increase/(decrease) in cash flow (E)=(B)+(C)+(D) | 1,271 | ( 1,918) | |
| CLOSING BALANCE (F)=(A)+(E) | 7,963 | 5,606 |
The cash flow absorbed by operating activity during the first half of 2015 amounts to EUR 8,748 thousand.
The cash flow comprising these funds is analysed below:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
|---|---|---|
| 2015 | 2014 | |
| Profit before taxes | 1,685 | 2,746 |
| Amortisation / write-downs | 6,237 | 6,288 |
| Accrual (+)/availment (-) of long term provisions and post employment benefits | ( 1,535) | ( 602) |
| Paid income taxes | ( 1,437) | ( 2,124) |
| Financial income (-) and financial charges (+) | 1,742 | 3,537 |
| Change in operating assets and liabilities | ( 15,440) | ( 5,787) |
| CASH FLOW (ABSORBED)/ GENERATED BY OPERATING ACTIVITY | ( 8,748) | 4,058 |
The cash flow absorbed by investing activity during the first half of 2015 amounts to EUR 4,266 thousand.
The factors comprising these funds are analysed below:
| CASH FLOW (ABSORBED)/ GENERATED BY INVESTING ACTIVITY | ( 4,266) | ( 2,784) |
|---|---|---|
| Investments and write-downs (-)/ Disinvestments and revaluations (+) | ( 51) | ( 247) |
| Increase (-)/ decrease (+) in tangible fixed assets | ( 2,942) | ( 1,805) |
| Increase (-)/ decrease (+) in intangible fixed assets | ( 1,273) | ( 732) |
| 2015 | 2014 | |
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
The cash flow generated by financing activity during the first half of 2015 amounts to EUR 14,285 thousand. The factors comprising these funds are analysed below:
| CASH FLOW (ABSORBED)/GENERATED BY FINANCING ACTIVITY | 14,285 | ( 3,192) |
|---|---|---|
| Financial income (+) and financial charges (-) | ( 1,742) | ( 3,537) |
| Increase (-)/ decrease (+) in long term financial receivables | ( 1,256) | 168 |
| Proceeds (+)/repayment (-) of financial payments | 17,288 | ( 739) |
| Dividends paid | - | - |
| Other variations in reserves and profits carried-forward of shareholders' equity | ( 5) | 916 |
| 2015 | 2014 | |
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
During the semester, no stock options of Aeffe S.p.A. have been granted. For the details relating to the stock options plans refer to the financial statements ended at 31 December 2014.
Regarding the long term incentive plans reserved to executive directors of Aeffe S.p.A., please refer to the indicated in the Report on remuneration available from the governance section of the following website: www.aeffe.com.
As required by Consob communication DEM/6264293 dated 28 July 2006 and in compliance with the CESR's "Recommendations for the consistent implementation of the European Commission's Regulation on Prospectuses" dated 10 February 2005, the Group's net financial position as of 30 June 2015 is analysed below:
| (Values in thousands of EUR) | 30 June | 31 December |
|---|---|---|
| 2015 | 2014 | |
| A - Cash in hand | 513 | 604 |
| B - Other available funds | 7,450 | 6,087 |
| C - Securities held for trading | - | - |
| D - Cash and cash equivalents (A) + (B) + (C) | 7,963 | 6,691 |
| E - Short term financial receivables | 2,216 | 1,000 |
| F - Current bank loans | ( 87,886) | ( 77,416) |
| G - Current portion of long-term bank borrowings | ( 4,679) | ( 2,808) |
| H - Current portion of loans from other financial istitutions | - | - |
| I - Current financial indebtedness (F) + (G) + (H) | ( 92,565) | ( 80,224) |
| J - Net current financial indebtedness (I) + (E) + (D) | ( 82,386) | ( 72,533) |
| K - Non current bank loans | ( 17,627) | ( 12,680) |
| L - Issued obbligations | 1,949 | 1,718 |
| M - Other non current loans | ( 72) | ( 72) |
| N - Non current financial indebtedness (K) + (L) + (M) | ( 15,750) | ( 11,034) |
| O - Net financial indebtedness (J) + (N) | ( 98,136) | ( 83,567) |
The net financial position of the Group amounts to EUR 98,136 thousand as of 30 June 2015 compared with EUR 83,567 thousand as of 31 December 2014.
Basic earnings per share:
| Basic earnings per share | 0.000 | 0.001 |
|---|---|---|
| Medium number of shares for the period | 101,486 | 101,486 |
| Consolidated earnings for the period for shareholders of the Parent Company | 35 | 150 |
| 2015 | 2014 | |
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Following the issue on 24 July 2007 of 19 million new shares, taken up in full, the number of shares currently outstanding is 107,362,504.
Reciprocal transactions and balances between Group companies included within the scope of consolidation are eliminated from the consolidated financial statements and as such will not be described here.
Operations carried out with related parties mainly concern the exchange of goods, the performance of services and the provision of financial resources. All transactions arise in the ordinary course of business and are settled on market terms i.e. on the terms that are or would be applied between two independent parties.
The Group's business dealing with other related parties are summarised below:
| (Values in thousands of EUR) | st Half 1 |
st Half 1 |
Nature of the |
|---|---|---|---|
| 2015 | 2014 | transactions | |
| Shareholder Alberta Ferretti with Aeffe S.p.a. | |||
| Contract for the sale of artistic assets and design | 150 | 150 | Cost |
| Ferrim with Aeffe S.p.a. | |||
| Property rental | 888 | 884 | Cost |
| Land purchase | 130 | - | Lands |
| Fratelli Ferretti Holding with Aeffe S.p.a. | |||
| Short term financial | 400 | - | Receivable |
| Commerciale Valconca with Aeffe S.p.a. | |||
| Commercial | 158 | 252 | Revenue |
| Property rental | 62 | 62 | Cost |
| Commercial | 973 | 1,081 | Receivable |
| Ferrim with Moschino S.p.a. | |||
| Property rental | 428 | 435 | Cost |
| Aeffe France with Società Solide Real Estate France | |||
| Property rental | 161 | 161 | Cost |
| Commercial | 317 | - | Payable |
| Commercial | - | 41 | Receivable |
| Moschino France with Società Solide Real Estate France | |||
| Property rental | 188 | 193 | Cost |
| Commercial | 21 | 71 | Payable |
| Aeffe USA with Ferrim USA | |||
| Long term financial | 1,949 | 1,416 | Receivable |
| Short term financial | 1,000 | 1,000 | Receivable |
| Commercial | 254 | - | Receivable |
| Commercial | 60 | - | Payable |
| Commercial | 62 | 51 | Revenue |
| Property rental | 357 | 293 | Cost |
The following table indicates the data related on the incidence of related party transactions on the income statement, balance sheet, cash flow and indebtedness at 30 June 2015 and at 30 June 2014.
| (Values in thousands of EUR) | Balance | Value rel. party |
% | Balance | Value rel. party |
% |
|---|---|---|---|---|---|---|
| st Half 1 |
2015 | st Half 1 |
2014 | |||
| Incidence of related party transactions on the income statement | ||||||
| Revenues from sales and services | 128,723 | 158 | 0.1% | 121,065 | 252 | 0.2% |
| Costs of services | 37,560 | 150 | 0.4% | 32,013 | 150 | 0.5% |
| Costs for use of third party assets | 11,371 | 2,084 | 18.3% | 10,455 | 2,028 | 19.4% |
| Financial income | 488 | 62 | 12.6% | 121 | 51 | 42.4% |
| Incidence of related party transactions on the balance sheet | ||||||
| Long term financial receivables | 16,958 | 130 | 0.8% | 16,176 | - | 0.0% |
| Long term financial receivables | 1,949 | 1,949 | 100.0% | 1,416 | 1,416 | 100.0% |
| Trade receivables | 38,184 | 1,227 | 3.2% | 36,464 | 1,122 | 3.1% |
| Short term financial receivables | 2,216 | 1,400 | 63.2% | 1,000 | 1,000 | 100.0% |
| Trade payables | 51,917 | 398 | 0.8% | 44,827 | 71 | 0.2% |
| Incidence of related party transactions on the cash flow | ||||||
| Cash flow (absorbed) / generated by operating activities | ( 8,748) | ( 2,548) | 29.1% | 4,058 | ( 2,120) | n.a. |
| ( 4,266) | ( 130) | 3.0% | ( 2,784) | - | 0.0% | |
| Cash flow (absorbed) / generated by financial activities | 14,285 | ( 631) | n.a. | ( 3,192) | 158 | n.a. |
| Incidence of related party transactions on the indebtedness | ||||||
| Net financial indebtedness | ( 98,136) | ( 3,309) | 3.4% | ( 89,938) | ( 1,962) | 2.2% |
Pursuant to Consob communication DEM/6064293 dated 28 July 2006, it is confirmed that in the first half of 2015 the Group did not enter into any atypical and/or unusual transactions, as defined in that communication.
It is confirmed that in the first six months of 2015 no significant non-recurring events and transactions have been realised.
The Group's tax disputes refer to the following companies:
Aeffe S.p.A.: the Rimini Provincial Tax Commission with ruling no. 101/2/06 filed on 16 December 2006 cancelled notices of assessment 81203T100562 (RG no. 43/05) and 81203T100570 (RG no. 69/05) issued by the Rimini Tax Authorities in November 2004. The issues raised related to the 1999 and 2000 tax years concern costs deemed not allowable and the write-down of the investment in Moschino. The Rimini tax office has appealed against the sentence handed down by the Rimini Provincial Tax Commissioners. The Company presented its counter analysis within the legally-prescribed time period. The Bologna Regional Tax Commission, as set during the hearing of 27 September 2010, has rejected the appeal, confirming the first level ruling.
On 12 January 2012, the State Legal Bar disputed the validity of the judgment of the Bologna regional tax commission, by bringing an appeal before the Court of Cassation. The company, presented its countersubmission within the time limit established by the law.
The positive outcome at the first two levels of judgment means that the further development of this dispute can be considered in a positive light.
The Rimini Provincial Tax Commission with ruling no. 37/02/08 of 28 January 2008, filed on 9 April 2008, cancelled notices of assessment no. 81203T300390/06 and no. 81203T300393/06 issued by the Rimini Tax Authorities in June 2006. The assessments concern tax years 2001 and 2002, and are connected with nonrecognition of utilisation of the tax loss achieved during tax period 2000. The Rimini Tax Office has appealed against the sentence handed down by the Rimini Provincial Tax Commissioners with notification sent to the company on 29 May 2009. The appeal presented its counter analysis to the Regional Tax Commission of Bologna within the legally-prescribed time period. The Bologna Regional Tax Commission ordered on 14 April 2011 the suspension of this judgment pending resolution of the dispute ruling related to the notice of assessment 81203T100570/20042 (tax year 2000) with sentence become final.
On 1 October 2008 the Rimini Tax Office notified the company of inspection minutes in relation to direct taxes and IRAP for FY 2005. The audits also concerned VAT and were mainly focused on relations with group companies and costs for services. Specifically, the Tax Office raised issues on non-pertinent costs totaling EUR 130 thousand and non-pertinent advertising costs amounting to roughly EUR 580 thousand tied to the disbursement of contributions to subsidiary companies. On 30 August 2010, the Major Taxpayers Office of the Emilia Romagna Regional Tax Department notified assessments TGB03B500172/2010 (IRAP), TGB08B500181/2010 (theoretical IRES) and TGB09B500185/2010 (actual IRES), containing the matters indicated above. The company challenged these assessments before the Bologna Provincial Tax Commissioners ahead of the legal deadline, trusting that the valid defensive reasoning will be accepted. On 13 July 2011, with tax return n. 137 2011 00031537 15 the company has been ordered to pay the amount registered in the roll by the Tax Office, provisionally awaiting trial, equal to half of the taxes in dispute, besides interests, for a total amount of EUR 161 thousand. This tax dispute has been disputed in December 2012 before the Bologna Provincial Tax Commission, who, with sentence no. 40/13/13, filed on 14 March 2013, has accepted the request of the company, annulling the contested measures with reference to the matter relating to intra-group costs for advertising contributions and confirming the contested measures related to the reliefs for costs to be incurred and intra-group costs for lease payments. The Office, with act of appeal notified to the company on 28 October 2013, appealed against the sentence of the Bologna Provincial Tax Commission requesting the reform in relation to the matter relating to intra-group costs for advertising contributions. The Company, on 23 December 2013, filed a timely notice of cross-appeal counterclaims and contextual interlocutory appeal.
On 30 May 2014, following a general tax audit for IRES, IRAP and VAT for the tax years 2009, 2010 and 2011, by the Emilia Romagna Regional Management, Large Taxpayers Office, was issued a formal notice of assessment, with which the Tax Office has formulated remarks with recoveries of total taxes (IRES and IRAP) of EUR 210 thousand for 2009, EUR 350 thousand for 2010 and EUR 299 thousand for 2011. The complaints mainly concern the recovery of costs for commissions and advertising contributions granted to certain foreign subsidiaries and the failure to account for interest income on loans to foreign subsidiaries.
The company, on 29 July 2014, submitted comments pursuant to Article 12, paragraph 7, of Law 212 of 2000.
On 3 December 2014 the Large Taxpayers Office of Emilia Romagna Regional Management has notified, for 2009, the assessment notices n. TGB0EC700238/2014 (IRES) and n. TGB03C700239/2014 (IRAP), with a total recovery of taxes of EUR 210 thousand.
Both assessment notices were appealed before the Bologna Provincial Tax Commission.
About it is noted that regarding the deductibility of advertising contributions to foreign subsidiaries (which constitute the bulk of disputes) the company has already received feedback from the Provincial Tax Commission of Bologna that, with judgment 40/13/13 filed on 14th March 2013 on the litigation referred to in paragraph above, has already rejected this type of dispute.
Pollini Retail S.r.l.: the case regarding the dispute in connection with non-recognition of VAT credit which arose in 2001, equal to approximately EUR 505 thousand, was discussed before the Regional Tax Commission of Bologna on 12 December 2008; on 12 February 2009 the injunction of the regional tax commission of Bologna ordering the Rimini office to provide the information necessary for assessing the amount due of VAT credit accrued by the company during FY 2001 was filed; with sentence no. 106/01/09, filed on 19 November 2009, the Regional Tax Commission of Bologna upheld the first level sentence. The company has appealed against said sentence with recourse to the Court of Cassation and is waiting for the hearing to be set.
The tax dispute introduced with the appeal against the silent refusal of the Rimini Office to the application presented by the company, aimed at recognising the 2001 VAT credit that was the subject matter of the case specified in the foregoing paragraph, was discussed on 26 February 2010 before the Rimini Provincial Tax Commissioners that, in its judgment filed on 5 September 2011, rejected the company's appeal. In response to this judgment, the company has timely appealed before the Bologna regional tax commission, that has set the hearing on 21 September 2015.
Pollini S.p.A.: in connection with the tax dispute regarding recovery of VAT for FY 2002 due to non-invoicing of taxable transactions concerning the company (also in its capacity of merging company of the former Pollini Industriale S.r.l.), please be reminded that:
in 2008 the Cesena Tax Office appealed against the order handed down by the Forlì Provincial Tax Commissioners, which fully upheld the company's appeal, and the appellee company appeared before the Regional Tax Commission of Bologna within the prescribed time;
in January 2009 the company appealed against the order of the Forlì Provincial Tax Commissioners, which had rejected the defence's arguments on that specific point.
The cases, together, were discussed on 25 January 2010 by the Regional Tax Commission of Bologna. With sentences no. 27/13/10 and no. 23/13/10, filed on 17 February 2010, it confirmed the legitimacy of the notices of assessment issued to the company.
Because the Office has served the ruling n. 23/13/10 on 23 September 2010, on 22 November 2010 it has been presented recourse to the Court of Cassation. The company is waiting for the hearing to be set.
No provisions have been recorded in relation to the above disputes, since the defensive arguments put forward by the companies and its professional advisors are fully sustainable.
The directors, in receipt of the opinion of their fiscal and legal consultants, do not deem it likely that any liabilities will derive from the above-mentioned.
| ATTACHMENT I | Consolidated Balance Sheet Assets with related parties |
|---|---|
| ATTACHMENT II | Consolidated Balance Sheet Liabilities with related parties |
| ATTACHMENT III | Consolidated Income Statement with related parties |
| ATTACHMENT IV | Consolidated Cash Flow Statement with related parties |
| (Values in units of EUR) | Notes | 30 June | of which | 31 December | of which |
|---|---|---|---|---|---|
| 2015 | Rel. parties | 2014 | Rel. parties | ||
| NON-CURRENT ASSETS | |||||
| Intangible fixed assets | |||||
| Key money | 34,336,872 | 34,916,804 | |||
| Trademarks | 90,708,968 | 92,455,759 | |||
| Other intangible fixed assets | 578,587 | 554,197 | |||
| Total intangible fixed assets | (1) | 125,624,427 | 127,926,760 | ||
| Tangible fixed assets | |||||
| Lands | 16,958,413 | 130,000 | 16,828,413 | 727000 | |
| Buildings | 23,414,629 | 23,688,050 | |||
| Leasehold improvements | 16,772,381 | 16,177,831 | |||
| Plant and machinary | 2,651,288 | 2,953,095 | |||
| Equipment | 327,052 | 308,741 | |||
| Other tangible fixed assets | 3,927,274 | 3,814,460 | |||
| Total tangible fixed assets | (2) | 64,051,037 | 63,770,590 | ||
| Other fixed assets | |||||
| Equity investments | (3) | 131,557 | 80,268 | ||
| Long term financial receivables | (4) | 1,949,325 | 1,949,325 | 1,718,063 | 1,718,063 |
| Other fixed assets | (5) | 4,510,280 | 4,701,444 | ||
| Deferred tax assets | (6) | 12,681,427 | 13,368,052 | ||
| Total other fixed assets | 19,272,589 | 19,867,827 | |||
| TOTAL NON-CURRENT ASSETS | 208,948,053 | 211,565,177 | |||
| CURRENT ASSETS | |||||
| Stocks and inventories | (7) | 93,886,978 | 83,867,256 | ||
| Trade receivables | (8) | 38,184,333 | 1,227,061 | 36,884,748 | 986,072 |
| Tax receivables | (9) | 10,066,239 | 8,531,445 | ||
| Cash | (10) | 7,962,978 | 6,691,668 | ||
| Financial receivables | (11) | 2,215,854 | 1,400,000 | 1,000,000 | 1,000,000 |
| Other receivables | (12) | 27,550,085 | 24,881,205 | 412,408 | |
| TOTAL CURRENT ASSETS | 179,866,467 | 161,856,322 | |||
| Assets available for sale | (13) | 436,885 | 436,885 | ||
| TOTAL ASSETS | 389,251,405 | 373,858,384 |
| (Values in units of EUR) | Notes | 30 June | of which | 31 December | of which |
|---|---|---|---|---|---|
| 2015 | Rel. parties | 2014 | Rel. parties | ||
| SHAREHOLDERS' EQUITY | (14) | ||||
| Group interest | |||||
| Share capital | 25,371,407 | 25,371,407 | |||
| Other reserves | 114,086,891 | 115,285,814 | |||
| Profits/(losses) carried-forward | ( 9,405,881) | ( 13,341,832) | |||
| Net profit/(loss) for the Group | 34,657 | 2,741,670 | |||
| Group interest in shareholders' equity | 130,087,074 | 130,057,059 | |||
| Minority interest | |||||
| Minority interest in share capital and reserves | 17,914,722 | 16,650,473 | |||
| Net profit/(loss) for the minority interest | 64,191 | 1,264,249 | |||
| Minority interest in shareholders' equity | 17,978,913 | 17,914,722 | |||
| TOTAL SHAREHOLDERS' EQUITY | 148,065,987 | 147,971,781 | |||
| NON-CURRENT LIABILITIES | |||||
| Provisions | (15) | 968,306 | 2,047,384 | ||
| Deferred tax liabilities | (6) | 36,666,477 | 36,828,733 | ||
| Post employment benefits | (16) | 7,001,302 | 7,457,710 | ||
| Long term financial liabilities | (17) | 17,699,029 | 12,752,273 | ||
| Long term not financial liabilities | (18) | 14,511,382 | 14,080,132 | ||
| TOTAL NON-CURRENT LIABILITIES | 76,846,496 | 73,166,232 | |||
| CURRENT LIABILITIES | |||||
| Trade payables | (19) | 51,917,308 | 397,464 | 55,052,139 | 1,102,806 |
| Tax payables | (20) | 2,749,626 | 3,124,892 | ||
| Short term financial liabilities | (21) | 92,565,200 | 80,224,019 | ||
| Other liabilities | (22) | 17,106,788 | 14,319,321 | ||
| TOTAL CURRENT LIABILITIES | 164,338,922 | 152,720,371 | |||
| Liabilities available for sale | |||||
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 389,251,405 | 373,858,384 |
| (Values in units of EUR) | Notes | st Half 1 |
of which | st Half 1 |
of which |
|---|---|---|---|---|---|
| 2015 | Rel. parties | 2014 | Rel. parties | ||
| REVENUES FROM SALES AND SERVICES | (23) | 128,722,575 | 158,376 | 121,064,933 | 252,150 |
| Other revenues and income | (24) | 3,286,684 | 2,025,757 | ||
| TOTAL REVENUES | 132,009,259 | 123,090,690 | |||
| Changes in inventory | 8,931,622 | 5,793,082 | |||
| Costs of raw materials, cons. and goods for resale | (25) | ( 48,902,247) | ( 42,642,492) | ||
| Costs of services | (26) | ( 37,560,279) | ( 150,000) | ( 32,013,312) | ( 150,000) |
| Costs for use of third parties assets | (27) | ( 11,371,425) | ( 2,084,787) | ( 10,455,439) | ( 2,026,120) |
| Labour costs | (28) | ( 30,728,131) | ( 29,205,519) | ||
| Other operating expenses | (29) | ( 2,614,978) | ( 1,996,739) | ||
| Amortisation, write-downs and provisions | (30) | ( 6,337,492) | ( 6,287,740) | ||
| Financial income/(expenses) | (31) | ( 1,741,557) | 61,426 | ( 3,536,987) | 51,262 |
| PROFIT / LOSS BEFORE TAXES | 1,684,772 | 2,745,544 | |||
| Income taxes | (32) | ( 1,585,924) | ( 2,095,495) | ||
| NET PROFIT / LOSS | 98,848 | 650,049 | |||
| (Profit)/loss attributable to minority shareholders | ( 64,191) | ( 499,735) | |||
| NET PROFIT / LOSS FOR THE GROUP | 34,657 | 150,314 |
| (Values in thousands of EUR) | Notes | st Half 1 |
of which | st Half 1 |
of which |
|---|---|---|---|---|---|
| 2015 | Rel. parties | 2014 | Rel. parties | ||
| OPENING BALANCE | 6,692 | 7,524 | |||
| Profit / loss before taxes | 1,685 | ( 2,015) | 2,746 | ( 1,873) | |
| Amortisation / write-downs | 6,237 | 6,288 | |||
| Accrual (+)/availment (-) of long term provisions and post employment benefits | ( 1,535) | ( 602) | |||
| Paid income taxes | ( 1,437) | ( 2,124) | |||
| Financial income (-) and financial charges (+) | 1,742 | 3,537 | |||
| Change in operating assets and liabilities | ( 15,440) | ( 533) | ( 5,787) | ( 247) | |
| CASH FLOW (ABSORBED)/ GENERATED BY OPERATING ACTIVITY | (33) | ( 8,748) | 4,058 | ||
| Increase (-)/ decrease (+) in intangible fixed assets | ( 1,273) | ( 732) | |||
| Increase (-)/ decrease (+) in tangible fixed assets | ( 2,942) | ( 130) | ( 1,805) | ||
| Investments and write-downs (-)/ Disinvestments and revaluations (+) | ( 51) | ( 247) | |||
| CASH FLOW (ABSORBED)/ GENERATED BY INVESTING ACTIVITY | (34) | ( 4,266) | ( 2,784) | ||
| Other variations in reserves and profits carried-forward of shareholders' equity | ( 5) | 916 | |||
| Dividends paid | - | - | |||
| Proceeds (+)/repayment (-) of financial payments | 17,288 | ( 631) | ( 739) | 158 | |
| Increase (-)/ decrease (+) in long term financial receivables | ( 1,256) | 168 | |||
| Financial income (+) and financial charges (-) | ( 1,742) | ( 3,537) | |||
| CASH FLOW (ABSORBED)/GENERATED BY FINANCING ACTIVITY | (35) | 14,285 | ( 3,192) | ||
| CLOSING BALANCE | 7,963 | 5,606 |
The undersigned Massimo Ferretti as President of the Board of Directors, and Marcello Tassinari as manager responsible for preparing Aeffe S.p.A.'s financial reports, pursuant to the provisions of Article 154-bis, clauses 3 and 4, of Legislative Decree n. 58 of 1998 ,hereby attest:
of the administrative and accounting procedures applied in preparation of the Half year condensed financial statements at 30 June 2015.
The undersigned moreover attest that:
The Half Year condensed financial statements:
The interim management report contains a reliable analysis of important events which took place during the first six months of the current fiscal year and their impact on the half-year condensed financial statements, together with a description of the principal risks and uncertainties for the remaining six months of the year. The interim management report also contains information concerning related party transactions.
30 July 2015
President of the board of directors Manager responsible for preparing Company's financial reports
Massimo Ferretti Marcello Tassinari
Tel: +39 051 27.15.54 Fax: +39 051 22.89.24 www.bdo.it
To the shareholders of Aeffe S.p.A.
Bologna, Italy July 30th, 2015
BDO Italia S.p.A.
Signed by Alessandro Gallo Partner
Aosta, Bari, Bologna, Brescia, Cagliari, Firenze, Genova, Milano, Napoli, Padova, Palermo, Pescara, Potenza, Roma, Torino, Trieste, Verona
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.