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Piquadro

Earnings Release Jul 23, 2020

4279_10-k_2020-07-23_2c38ec89-3696-4082-ba6d-4f992dcd3459.pdf

Earnings Release

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Informazione
Regolamentata n.
0955-10-2020
Data/Ora Ricezione
23 Luglio 2020
17:46:45
MTA
Societa' : PIQUADRO
Identificativo
Informazione
Regolamentata
: 135234
Nome utilizzatore : PIQUADRON01 - Trotta
Tipologia : 1.1
Data/Ora Ricezione : 23 Luglio 2020 17:46:45
Data/Ora Inizio
Diffusione presunta
: 23 Luglio 2020 17:46:45
Oggetto : Draft Financial Statements and the
Year ended 31 March 2020
BoD of Piquadro S.p.A. Approval of the
Consolidated Financial Statements for the
Testo del comunicato

Vedi allegato.

Press Release

Board of Directors of Piquadro S.p.A. Approval of the Draft Financial Statements and the Consolidated Financial Statements for the Year ended 31 March 2020

  • Consolidated revenues: € 152.2 million (3.2% more than the year ended 31 March 2019);
  • EBITDA: 13.0 million;
  • Adjusted EBITDA1 : € 0.50 million (up € 1.3 million compared to Adjusted Ebitda of 2018/19);
  • EBIT: € (6.75) million; (including 3.4 million of write off related to the impairment tests of the Group's Rights of Use due to impact of adoption of IFRS 16)
  • Adjusted EBIT1 : (3.40) million (up € 1.0 million compared to Adjusted Ebit of 2018/19);
  • Consolidated Net Result: € (7.75) million (including net impact tax effects of accounting principle IFRS 16 – impairment and financial charges –
  • Net Financial Position: negative and equal to € (36.0) million including approximately € 53.6 million of financial payables due to impact of adoption of IFRS 16.
  • Adjusted Net Financial Position1 : positive and equal to € 17.5 million.

Silla di Gaggio Montano, 23 July 2020 – Piquadro S.p.A., company that designs, produces and markets leather goods, today approved the draft financial statements for the year 1 April 2019 – 31 March 2020 and the consolidated financial statements for the same period.

For the financial year 2019/2020 ending March 31, 2020, the Piquadro Group reported revenues of 152.2 million Euro with a 3.2% increase compared to the 147.5 million Euro reported in financial year 2018/2019 ended March 31, 2019. The increase in revenues was mainly determined by the full consolidation of twelve months' sales of Maison Lancel (versus ten months in the previous financial year closed on March 31, 2019) and by a 0.6% increase in sales from the The Bridge brand

With reference to the Piquadro brand, for the financial year 2019/2020, ended 31 March 2020, sales amounted to Euro 72.0 million and recorded a 5.1% decrease compared to financial year 2018/2019 ended March 31, 2019. This decrease was mainly driven by both lower sales in the Wholesale channel, which was down 8.2%, and which accounted for 56.3% of the total Piquadro brand turnover, and a 0.6% decrease in DOS sales (which include Piquadro's webstore with sales growing by 27.3%), which accounted for 43.7% of the total Piquadro brand turnover.

With reference to the The Bridge brand, for the financial year 2019/2020, ended 31 March 2020, sales amounted to Euro 26.7 million and it recorded a 0.6% increase compared to financial year 2018/2019 ended March 31, 2019; sales of the Wholesale channel decreased by 3.7%, and account for 65.9% of the total The Bridge brand turnover, while DOS sales (which include The Bridge's

1 With the introduction of the new accounting standard IFRS 16, starting from April 1st 2019, a new accounting treatment of leases is introduced, which generates a significant effect on EBITDA, EBIT, net invested capital, net financial position and cash flow generated from operational activity. For this reason, in this press release the "adjusted" balances of the aforementioned amounts are also reported in order to make the figures for March 31st 2020 comparable with those of previous periods

webstore with sales growing by 33.8%), which accounted for 34.1% of the total The Bridge brand turnover increased by 9.9%.

Revenues from sales by Maison Lancel in the financial year 2019/2020 ended March 31, 2020 amounted to Euro 53.6 million and contributed to the growth of the Group turnover by 13,9% (revenues recorded in the first ten months of financial year 2018/2019 were equal to Euro 45.1 million but only referred to the period from June 2018 to March 2019 months of Lancel's inclusion within the consolidation area of the Piquadro Group). Lancel's sales from the DOS channel (which also includes the webstore) represent 84.4% of the brand revenues.

As a result of the rapid spread of the pandemic known as Covid-19, which also resulted in the banning and blocking of commercial activities and international traffic and the closure of the majority of Piquadro brand and The Bridge brand direct stores, starting from March 11, 2020, and the Maison Lancel brand direct stores, starting from March 14, 2020 in the last quarter of the year (i) the revenues of the Piquadro brand have decreased overall by 27.8% compared to the same period of the previous year in which the DOS channel (which includes the Piquadro's e-commerce site) has decreased by 16% and the Wholesale channel by 35.2%; (ii) the revenues of The Bridge brand have decreased overall by 28.7% compared to the same period of the previous year in which the DOS channel (which includes The Bridge's e-commerce site) has decreased by 12% and the Wholesale channel by 38.2% and (iii) the revenues of Lancel have decreased overall by 16.5% compared to the same period of the previous year in which the DOS channel (which includes Lancel's ecommerce site) has decreased by 16.6% and the Wholesale channel by 16.3%.

Under a geographic point of view, as of March 31, 2020, the Group's revenues amounted to Euro 76.2 million and highlighted a 4.3% decrease on the Italian market, which absorbs a percentage of the Group's total turnover equal to 50.0% (54.0% of consolidated sales at March, 31 2019).

In the European market, the Group recorded a turnover of Euro 72.0 million, equal to 47.3% of consolidated sales (43.0% on March 31, 2019), with a 13.6% increase compared to financial year 2018/2019. The increase in revenues was mainly determined by the introduction of Lancel into the consolidation area in June 2018 (growth contribution equal to approx. 14.0%).

In the non-European geographical area (named "Rest of the World") the Group recorded a turnover of Euro 4.1 million equal to 2.7% of consolidated sales (3.1% at March 31, 2019), with a 444 thousand Euro decrease ,compared to financial year 2018/2019 ended March 31, 2019.

In terms of profitability, the Piquadro Group recorded an EBITDA of around €13.0 million as of March 31, 2020 including € 12.5 positive effects of accounting principle IFRS 16.

The adjusted EBITDA1 , defined as EBITDA net of the impacts deriving from the application of IFRS 16, is equal to € 0.5 million and it has increased to €1.3 million compared to the €(0.82) million recorded in the previous fiscal year ended March 31, 2019.

The adjusted EBITDA1 of the Piquadro brand as of March 31, 2020 is equal to € 6.90 million with a decrease of 35.8% compared to financial 2018/2019 ended March 31, 2019.

The adjusted EBITDA1 of The Bridge as of March 31, 2020 is equal to €1.43 million and it has increased to 0.20 million compared to the previous year ended March 31, 2019.

The adjusted EBITDA1 of the Maison Lancel as of March 31, 2020 is equal to € (7.82) million and compares with the € (12.8) million at March 31, 2019, which included €1.4 million of acquisition costs and related to only 10 months (June 2018 – March 2019).

Piquadro Group recorded an EBIT of around € (6.75) million as of March 31, 2020 including € 3.4 negative effects of accounting principle IFRS 16 and impairment testing process for Group's directed operated stores.

The adjusted EBIT1 , defined as EBIT net of the impacts deriving from the application of IFRS 16, is equal to € (3.4) million and it has increased to €1.0 million compared to the €(4.3) million recorded in the previous fiscal year ended March 31, 2019.

Piquadro Group recorded a Consolidated Net Result of around € (7.7) million as of March 31, 2020 including € 3.1 negative effects of accounting principle IFRS 16, impairment testing process for Group's directed operated stores net of related taxation.

The Net Financial Position of the Piquadro Group was negative and equal to €(36.0) million. The impact of the application of the new accounting standard IFRS 16 was equal to approximately € 53.6 million with a minus sign.

The adjusted Net Financial Position1 of the Piquadro Group, was positive and equal to approximately €17.5 million, compared to the Group's positive figure of approximately €25.6 million recorded on March 31, 2019. The variation in the adjusted Net Financial Position of the Piquadro Group at March 31, 2020 compared to the Net Financial Position recorded around the same period of the previous year, is explained by the payment of €4.0 million dividends, investments of € 3,9 million in fixed, intangible and financial assets, by €2.3 million for a decrease in working capital and € 2.4 million increase in tax receivable and deferred tax assets .

COVID-19

The "Covid-19" pandemic spread from January 2020 in China and Asia first, and then -from February and March 2020 - in Europe and America, and the consequent measures introduced by the public and government authorities of the Countries affected by the emergency in order to contain the spread of the virus, had a very serious impact on the personal and professional life of people and, of course, of the companies.

In fact, the emergency regulatory actions involved, among other things, the prohibition and/or restriction on the mobility and circulation of people and goods and the closure of commercial activities and sales to the public (so-called lockdown), as well as restrictions on industrial and production activities, having an extraordinarily negative impact on tourist flows throughout the world and, consequently, on market trends, leading to the closure of most of the Piquadro Group's distribution network.

The Piquadro Group immediately faced this new and difficult scenario, complying with all the requirements set by the Italian Government and the governments and public authorities of the countries in which the Piquadro Group operates by implementing exceptional measures aimed at ensuring maximum protection of the health of its employees and collaborators, as well as that of its reputation.

The prevention, mitigation and adjustment measures undertaken by the Group concerned, among other things, (i) labour law aspects relating to relations with employees and safety in the workplace, (ii) agreements with the management of Group companies, (iii) access and use of the temporary layoff benefit schemes, (iv) the temporary closure of stores directly managed in Italy and France.

The Piquadro Group has also undertaken various initiatives to support the territory, the community and local healthcare.

"The extraordinary and unpredictable context had a significant impact on the last quarter, compromising the results achieved in the first nine months ended 31 December 2019" comments Marco Palmieri, Chairman and CEO of the Piquadro Group. "In the light of the shock caused by the COVID19, we promptly implemented all possible measures to mitigate the effects of the pandemic both from an economic and financial point of view. The restructuring of Maison Lancel also had a significant impact on the Group's fiscal year results, but we have evidence that the recovery path is correctly set. The Group's financial solidity is evidenced by the positive adjusted net financial position of EUR 17.5 million at March 31, 2020. In the difficulty of making forecasts for the coming months, the evidence leads us to suppose that the second quarter (July-September) will see a lower decline in sales than the first (April-June), with a recovery in sales, although remaining lower than last year's levels".

Results of parent company Piquadro S.p.A.

The parent company generated net sales of € 69.72 million in the year ended 31 March 2020, 4.2% less than in the previous year. Negative sales performance was determined by the negative performance in the domestic markets (7.0%) compared to the same period of the previous year while sales were increasing in European market (+8.6%) compared to the same period of the previous year.

Parent company EBITDA reached € 10.39 million in the year ended 31 March 2020, including € 3.98 million of positive effects of accounting principle IFRS 16.

Parent company EBIT reached € 4.09 million in the year ended 31 March 2020, including 0.17 million of negative effects of accounting principle IFRS 16 and impairment testing process on Group's directly stores.

Parent company Net Result reached € 3.4 million in the year ended 31 March 2020, including 0.4 million of negative effects of accounting principle IFRS 16, impairment testing process for Group's directed stores net of related taxation.

The Net financial Position of the parent company on 31 March 2020, a negative € 28.2 million, was € 15.9 million worse than the indebtedness reported at 31 March 2019, negative and equal to € 12.3 million. The change in Net Financial Position at 31 March 2020 was primarily the result of negative effects of accounting principle IFRS 16, equal to € 14.6 million.

The adjusted Net Financial Position1 of the parent company, was negative and equal to approximately €13.6 million, € 1.3 million worse than the indebtedness reported at 31 March 2019.

Outlook 2020-21

In a context of still reduced visibility depending on the various possible scenarios determined by the effects of Covid-19, macroeconomic and sector estimates predict a contraction in the Piquadro Group's reference market that cannot be predicted at this stage and, therefore, the elements that contribute to the formulation of forecasts for 2020/2021 remain significantly uncertain as they are linked to the evolution of the pandemic and the consequent reaction of demand in a recessionary context that could continue in the coming months.

In order to mitigate the effects of the economic situation linked to the Covid-19 health emergency, the Piquadro Group has implemented measures to reduce costs, maintain operations and safeguard the liquidity of the Piquadro Group and has adopted adequate safety standards in accordance with regulatory guidelines.

While aware that the 2020/2021 financial year remains very complicated, the Piquadro Group, focusing on its strengths and thanks to the work carried out and the investments executed in the last few years, is convinced that it will quickly resume its path and maintain a positive attitude towards future developments.

This press release presents a few alternative indicators to permit a better assessment of the Group's financial and profit performance. These indicators must not be considered in lieu of the convention indicators required by the IFRS. Specifically, the alternative indicator presented is EBITDA, defined as earnings before depreciation and amortization, financial expense and income, and current income taxes. With regard to the financial statement formats contained in this press release, please note that they include data for which the auditing process has not been completed.

Roberto Trotta, the manager responsible for preparation of the company accounting documents of Piquadro S.p.A., pursuant to Article 154-bis(2) of Legislative Decree 58/1998 (TUF), attests that the accounting data for the fiscal year ended 31 March 2020, as contained in this press release, corresponds to the documentary results and accounting books and registers.

The consolidated financial statement and the parent company financial statement for the year ended 31 March 2020 are subject to revision and the reports on operations and corporate governance and on the ownership structure are subject to the verification by the independent auditors, now in progress.

Report on remuneration and recognized compensation

The Board of Directors today approved the Report on Compensation pursuant to Article 123-ter of the TUF and the implementing directives issued by CONSOB. The Board of Directors also resolved to present and submit to the binding vote of the shareholders at their next meeting the First Section of the Report on remuneration and recognized compensation, which illustrates the company policy on the compensation of directors and managers with strategic responsibilities for the fiscal year ending on 31 March 2021, and to the advisory and non-binding vote of the shareholders the Second Section of the Report relating to the recognized compensation, in accordance with Article 123-ter, paragraphs 3-bis and 6, of the TUF.

Report on Corporate Governance

The Board of Directors today also approved the Report on Corporate Governance and ownership structure for the fiscal year ended 31 March 2020, containing information on the company compliance with the Code of Conduct for Listed Companies promoted by Borsa Italiana S.p.A. and the additional information required by current laws and regulations.

Non-financial Declaration

The Board of Directors, in its meeting today, also approved the Non-financial Declaration in conformity with Legislative Decree no. 254/2016 regarding the communication of non-financial information and diversity of companies and large groups. This document constitutes the evidence and commitment of Piquadro to support the development of an increasingly sustainable business that responds to the needs of is stakeholders.

Calling of the Shareholders Meeting

The Board of Directors meeting today also resolved to convene the general shareholders' meeting for 10 September 2020, on first call, and, failing it, on 14 September 2020, on second call, to approve the financial statements for the year ended 31 March 2020 and:

• to express a binding vote on the First Section of the Report on remuneration and recognized compensation, which illustrates the company policy on the compensation of directors and managers with strategic responsibilities for the fiscal year ending on 31 March 2021, and an advisory and nonbinding vote of the shareholders on the Second Section of the Report relating to the recognized compensation, in accordance with Article 123-ter, paragraphs 3-bis and 6, of the TUF;

• to deliberate on the proposed authorization to the Board of Directors to acquire and sell treasury shares.

The call notice of the shareholders meeting will be posted by the company on the company website www.piquadro.com on 29 July 2020 pursuant to law and the Bylaws and on the authorized storage facility Spafid Connect S.p.A., accessible at . An extract of the notice of convocation will be published on 30 July 2020 in a newspaper distributed nationwide.

Treasury shares

The principal purpose of the request to renew shareholder authorization to the Board of Directors to purchase and sell company shares is to stabilize the company stock and support liquidity but also to create a pool of shares, if the Board of Directors sees a necessity, for possible use of the shares as a consideration in special transactions, including share swapping, with other parties as part of transactions in the company interest, pursuant to market practice no. 2 set forth in CONSOB Resolution 16839/2009. If approved by the shareholders, the Board of Directors proposal states that the Board of Directors is authorized to purchase treasury shares up to the maximum number legally allowed for a period of 12 months from the date of authorization - i.e. until the general meeting to approve the financial statements for the year ended 31 March 2021 - by utilizing the available reserves shown in the latest duly approved financial statements.

These transactions may be effected in one or more installments by purchasing shares pursuant to Article 144-bis(1,b) of the Issuers Regulation in regulated markets following operating procedures established in the regulations for market organization and operation, which prohibit the direct matching of purchase proposals with predetermined sales transactions.

The purchases may be made with procedures other than those indicated in Article 132(3) of the TUF and other directives applicable at the time of the transaction. The purchase price of the shares chosen shall be determined, in each case, following the procedure selected for the transaction and in compliance with laws, regulations and market practices, within a minimum and maximum determined as follows:

the minimum purchase price must in no case be less than 20% of the reference price at which the stock was quoted in trading on the day preceding each individual transaction.

the maximum purchase price must in no case be more than 10% above the reference prices at which the stock was quoted in trading on the day preceding each transaction.

If the treasury shares are purchased in compliance with practices allowed for liquidity support, pursuant to market practice no. 1 of CONSOB Resolution 16839/2009, without violating the additional limits it prescribes, the proposed purchase price may not exceed the higher of the price of the latest independent trade and the current trading purchase price present in the market where the purchase proposals are issued.

The proposal of the Board of Directors also includes authorization to sell any purchased treasury shares, in one or more installments, at the price fixed by the Board of Directors not less than 20% of the minimum reference price at which the stock was traded in trading on the day preceding each transaction.

The authorization to sell is also requested from the shareholders effective on the date of shareholder resolution of 10 September 2020 without time limits.

When treasury shares are sold with permitted practices related to market liquidity support, as set forth in point 1 of CONSOB Resolution 16839/2009, and within the additional limits prescribed therein, the price of the proposed sale must not be less than the lower of the price of the latest independent trade and the lowest current offering price for independent sale in the market where the sale is proposed. The company currently holds no treasury shares; the subsidiaries own no shares in the company.

Board of Statutory Auditors Self-assessment

The Board of Directors has announced that, pursuant to Standard Q.1.1 of the "Standards of Conduct for Boards of Statutory Auditors of Listed Companies prepared by the National Council of Chartered Accountants and Accounting Experts in the version that took effect on 28 April 2018", the Board of Statutory Auditors conducted a self-assessment process referring to the 2019-20 fiscal year. For additional details and the results of this self-assessment, please see paragraph 14 of the Report on Corporate Governance and Ownership Structure, which will be made publicly available when and as required by law.

Documents

The Annual Financial Report (including the report on operations, the draft financial statements, and consolidated financial statements for the year ended March 31, 2020) and the Report on Corporate

Governance, will be made publicly available at the registered offices of the company, on the website www.piquadro.com in the Investor Relations section, and at the authorized data storage facility Spafid Connect S.p.A., accessible at , as required by law.

The Board Report on the request for shareholder approval to purchase and sell company shares will be published with the procedure prescribed by current law—and thus also on the website www.piquadro.com in the Investor Relations section—at the same time as publication of the report on the points of the agenda (Article 125-ter of the TUF) and in any case by the legal deadline. The Report on Compensation required by Article 123-ter of the TUF will be published when and as required by applicable law and will also be available for consultation on the website www.piquadro.com.

Annexes

Balance Sheet, Income Statement, and Statement of Cash Flows, consolidated and for parent company Piquadro S.p.A. The data indicated have not yet been certified and are subject to final verification by the Board of Statutory Auditors of Piquadro S.p.A.

Disclaimer

This press release contains some statements of projection, particularly in the section "Outlook 2020- 21". These statements are based on current expectations and projections of the Group relative to future events and are, by their nature, subject to an intrinsic component of uncertainty. These statements refer to events and depend on circumstances that may or may not occur or exist in the future and, as such, cannot be regarded as fully reliable. The actual results may differ from those contained in the statements due to multiple factors, including market volatility and decline, changes in the prices of raw materials and processing, changes in macroeconomic conditions and economic growth and other changes in business conditions, changes in laws and regulations and the institutional context in Italy and abroad, and many other factors most of which are outside Group control.

This press release, issued on 23 July 2020, was prepared in compliance with the Issuers Regulation. It is publicly available at Borsa Italiana S.p.A., on the authorized storage facility Spafid Connect S.p.A., accessible at , and on the company website (www.piquadro.com) in the "Investor Relations" section.

Summary of Economic-financial data and interpretation of alternative performance indicators (Iap)

The Piquadro Group uses the Alternative Performance Indicators (Iap) in order to effectively transmit information regarding the performance of the profitability of the business in which it operates and to determine its precise asset and financial position. In accordance with the guidelines published on the 5th of October 2015, by the European Securities and Markets Authority (Esma / 2015/1415), and in line with the provisions of the Consob Communication No. 92543 listed on the 3rd of December 2015, the Group provides content and the criterion to determine the Iap used in these financial statements.

• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is an economic indicator that is not defined in the International Accounting Standards. EBITDA is a measure used by Management to monitor and evaluate the Group's operating performance. Management believes that EBITDA is an important parameter for measuring the Group's performance, as it is not influenced by the volatility in regards to the effects of the different criteria that determine taxable income, the amount and characteristics of the capital employed as well as the policies of amortization. EBITDA is defined as the Operating Profit before amortization and depreciation of tangible and intangible assets, financial income and charges and income taxes for the year.

• The adjusted EBITDA is defined as the EBITDA net of the impacts deriving from the implementation of IFRS 16.

• EBIT - Earnings Before Interest and Taxes is the operating profit before financial income and charges and income taxes.

• Adjusted EBIT is defined as EBIT net of the impacts deriving from the application of IFRS 16.

• The Net Financial Position ("NFP") is used as a financial indicator for debt, and is represented as a sum of the following positive and negative components of the financial balance sheet, as required by CONSOB Communication no. 6064293 of 28 July 2006. Positive components: cash and cash equivalents, securities that can be quickly liquidated from current assets, short-term financial receivables. Negative components: debts to banks, payables to other lenders, leasing and factoring companies.

• The adjusted Net Financial Position ("adjusted NFP") is defined as the Net Financial Position net of the impacts deriving from the application of IFRS 16.

Piquadro Group

The Piquadro Group operates in the sector of leather accessories through the Piquadro, The Bridge and Lancel brands. Cornerstones for the three brands is attention to details and the quality of the workmanship as well as the leather but the Piquadro product stands out for its innovative design and technological content, while The Bridge emphasizes the vintage flavor of Tuscan craftsmanship and finally the Lancel collections embody the Parisian allure of a fashion house founded in 1876.The origins of the Group date back to 1987 when Marco Palmieri, now President and Chief Executive Officer, founded his company near Bologna, where it is still headquartered. The distribution network extends over 50 countries around the world and counts 177 outlets including 91 Piquadro boutiques (60 in Italy and 31 abroad including 54 DOS directly operated stores and 37 franchised stores), 12 The Bridge boutiques (12 in Italy including 9 DOS directly operated stores and 3 franchised) and 74 Lancel boutiques (60 in France and 14 abroad, of which 68 DOS directly operated stores and 6 franchised).

The Group's consolidated turnover for the year 2019/2020 ended on March 31, 2020 is € 152.2 million.

Piquadro S.p.A. has been listed on the Italian Stock Exchange since October 2007.

Piquadro S,p,A, Piquadro S,p,A, Media Relations Investor relationship Paola Di Giuseppe Roberto Trotta Tel +39 02 37052501 Tel +39 0534 409001 [email protected] [email protected]

(in thousands of Euro) March 31, 2020 March 31, 2020
escluding
IFRS16
March 31, 2019
ASSETS
NON-CURRENT ASSETS
Intangible assets 2,591 3,7432 3,283
Goodwill 4,658 4,658 4,658
Right of Use 50,495 0 0
Property, plant and equipment 13,562 13,562 13,206
Investments 22 22 22
Receivables from others 2,204 2,204 2,252
Deferred tax assets 4,591 3,449 2,448
TOTAL NON-CURRENT ASSETS 78,123 27,638 25,869
CURRENT ASSETS
Inventories 37,959 37,959 35,820
Trade receivables 26,471 26,471 34,543
Others current assets 6,578 6,578 5,331
Derivative assets 184 184 78
Tax receivables 3,853 3,853 1,690
Cash and cash equivalents 57,550 57,550 52,346
TOTAL CURRENT ASSETS 132,595 132,595 129,808
TOTAL ASSETS 210,718 160,233 155,677

Consolidated statement of financial position as at March 31, 2020 and March 31, 2019

2 Key money, which were presented in intangible assets as at March 31, 2019, have been reclassified to right-ofuse assets on adoption of IFRS 16 Leases.

(in thousands of Euro) March 31, 2020 March 31, 2020 escluding IFRS16 March 31, 2019 LIABILITIES EQUITY Share Capital 1,000 1,000 1,000 Share premium reserve 1,000 1,000 1,000 Other reserves 2,264 2,204 2,041 Retained earnings 65,693 65,752 35,159 Group profit for the period (7,714) (4,593) 34,534 Total equity attributable to the Group 62,243 65,363 73,734 Capital and Reserves attributable to minority interests (282) (282) (207) Profit/(loss) for the period attributable to minority interests (41) (38) (59) Total share attributable to minority interests (323) (320) (266) TOTAL EQUITY 61,920 65,043 73,468 NON-CURRENT LIABILITIES Borrowings 20,501 20,501 13,598 Payables to other lenders for lease agreements 39,243 0 0 Other non current liabilities 6,362 6,362 7,024 Provision for employee benefits 3,751 3,751 3,977 Provision for risk and chargers 2,908 2,908 2,824 Deferred tax liabilities 0 0 0 TOTAL NON-CURRENT LIABILITIES 72,765 33,522 27,423 CURRENT LIABILITIES Borrowings 15,433 15,433 7,351 Payables to other lenders for lease agreements 14,365 0 12 Derivative liabilities 17 17 6 Trade Payables 38,681 38,681 36,219 Other current liabilities 7,194 7,194 8,914 Tax payables 343 343 2,284 TOTAL CURRENT LIABILITIES 76,033 61,668 54,786 TOTAL LIABILITIES 148,798 95,190 82,209 TOTAL EQUITY AND LIABILITIES 210,718 160,233 155,677

Consolidated statement of financial position as at March 31, 2020 and March 31, 2019

Consolidated income statement for the period ended March 31, 2020 and March 31, 2019

Twelve
months as
of March
31, 2020
% on
Revenue
Twelve
months as
of March
31, 2020
escluding
IFRS16 (*)
% on
Revenue
Twelve
months as
of March
31, 2019
% on
Revenue
Var % March
31, 2020
excluding
IFRS16 vs
March 31,
2019
3,2%
72,6%
155,220 100,0% 155,220 100,0% 149,206 100,0% 4,0%
(2,386) (1,5%) (2,386) (1,5%) (328) (0,2%) 627,4%
36,619 23,6% 36,619 23,6% 40,107 26,9% (8,7%)
65,960 42,5% 78,503 50,6% 70,390 47,2% 11,5%
40,234 25,9% 40,234 25,9% 38,590 25,9% 4,3%
20,769 13,4% 4,234 3,1% 4,462 3,0% 9,2%
777 0,5% 777 0,5% 336 0,2% 131,0%
161,973 104,4% 158,619 102,2% 153,557 102,9% 3,3%
(6,753) (4,4%) (3,399) (2,2%) (4,351) (2,9%) (21,9%)
1,453 0,9% 1,453 0,9% 1,385 0,9% 4,9%
0 0,0% 0 0,0% 42,176 28,3% (100%)
(2,204) (1,4%) (1,293) (0,8%) (2,129) (1,4%) (39,3%)
(751) (0,5%) 160 0,1% 41,432 27,8% (99,6%)
(7,504) (4,8%) (3,239) (4,8%) 37,081 24,9% (108,7%)
(251) (0,2%) (1,392) (0,9%) (2,605) (1,7%) (46,5%)
(7,755) (5,0%) (4,631) (3,0%) 34,476 23,1% (113,4%)
(7,714) (5,0%) (4,593) (3,0%) 34,535 23,1% (113,3%)
(41) (0,0%) (38) (0,0%) (59) (0,0%) 35,6%
(0,155) (0,093) 0,690
160,9%
152,227
2,993
13,047
98,1%
1,9%
8,4%
152,227
2,993
504
98,1%
1,9%
0,3%
147,472
1,734
(828)
98,8%
1,2%
(0,6%)

(*) The economic financial data in the column "12 months at March 31, 2020 excluding IFRS 16", referencing to the operating result, EBITDA and net result for the period, have been determined excluding the impacts deriving from the implementation of the new accounting standard IFRS 16.

(in thousands of Euro) March
31, 2020
March
31, 2019
Profit before tax (7,504) 37,081
Adjustments for: 3,216
Depreciation of property, plant and equipment/Amortisation of intangible assets 138 2,970
Write-downs of property, plant and equipment and intangible assets 12,523 553
Depreciation of Right of Use 3,923 0
Write-downs of Right of Use 969 0
Provision for bad debts 0 938
Non-recurring income from acquisition of Lancel Group 751 (42.176)
Net financial costs/(income), including foreign exchange differences 14,016 744
Cash flow from operating activities before changes in working capital 111
7,103
Change in trade receivables (net of the provision) (2,139) (5,435)
Change in inventories (1,199) (750)
Change in other current assets 1,871 934
Change in trade payables (74) 2,399
Change in provisions for risks and charges (2,382) 202
Change in other current liabilities (4,448) 725
Change in tax receivables/payables 12,747 385
Cash flow from operating activities after changes in working capital (2,049) (1,430)
Taxes paid (160) (2,769)
Interest paid 10,538 (744)
Cash flow generated from operating activities (A) (4,942)
Cash and cash equivalents acquired net of purchase price of Maison Lancel 0 43,817
Investments in intangible assets (51) (869)
Disinvestments from intangible assets 0 80
Investments in tangible assets (2,968) (4,285)
Disinvestments from property, plant and equipment 0 64
Investments in investments 0 (20)
Changes generated from investing activities (B) (3,018) 38,787
Financing activities
Change in short-and medium/long-term borrowings 14,985 (2,524)
-
New loans
22,000 10,000
-
Other variations
(7,015) (12,524)
Changes in financial instruments (26) (64)
Lease instalments paid (13,344) (904)
Other minor changes 0 (60)
Dividends paid (4,000) (3,000)
Cash flow generated from/(absorbed by) financing activities (C) (2,385) (6,552)
Change in the translation reserve (D) 70 1,502
Net increase (decrease) in cash and cash equivalents (A+B+C+D) 5,204 28,794
Cash and cash equivalents at the beginning of the period 52,346 23,552
Cash and cash equivalents at the end of the period 57,550 52,346

Consolidated cash flow statement as at March 31, 2020 and March 31, 2019

March 31, 2020
(in thousands of Euro) March 31, 2020 escluding
IFRS16
March 31, 2019
ASSETS
NON-CURRENT ASSETS
Intangible assets 699 1,4823 1,334
Right of Use 14,817 0 0
Property, plant and equipment 8,487 8,487 8,275
Financial assets 14,055 14,055 14,055
Receivables from others 426 426 368
Receivables group company 9,800 9,800 8,325
Deferred tax assets 1,597 1,459 1,045
TOTAL NON-CURRENT ASSETS 49,881 35,709 33,401
CURRENT ASSETS
Inventories 15,839 15,839 13,491
Trade receivables 18,375 18,375 22,756
Receivables due from group companies 7,999 7,999 7,307
Others current assets 2,415 2,415 1,224
Receivables for derivative financial instruments 184 184 78
Tax receivables 1,051 1,051 146
Cash and cash equivalents 26,073 26,073 14,041
TOTAL CURRENT ASSETS 71,937 71,937 59,043
TOTAL ASSETS 121,819 107,647 92,445

Separate statement of financial position of Piquadro S,p,A, as at March 31, 2020 and March 31, 2019

3 Key money, which were presented in intangible assets as at March 31, 2019, have been reclassified to right-ofuse assets on adoption of IFRS 16 Leases.

Separate statement of financial position of Piquadro S,p,A, as at March 31, 2020 and March 31, 2019

March 31, 2020
(in thousands of Euro) March 31, 2020 escluding
IFRS16
March 31, 2019
LIABILITIES
EQUITY
Share Capital 1,000 1,000 1,000
Share premium reserve 1,000 1,000 1,000
Other reserves 1,396 1,396 1,290
Retained earnings 35,407 35,407 33,979
Group profit for the exercise 3,374 3,810 5,428
EQUITY 42,177 42,613 42,697
NON-CURRENT LIABILITIES
Borrowings 20,468 20,468 13,598
Payables to other lenders for lease agreements 11,115 0 0
Other non current liabilities 3,939 3,939 4,818
Provision for employee benefits 240 240 294
Provision for risk and chargers 1,571 1,571 1,380
TOTAL NON-CURRENT LIABILITIES 37,332 26,217 21,091
CURRENT LIABILITIES 15,243
Borrowings
Payables to other lenders for lease agreements
15,243
3,496
2 7,174
0
Trade Payables 16,489 16,486 13,420
Payables due to group companies 4,562 4,562 4,043
Payables for derivative financial instruments 17 17 6
Other current liabilities 2,161 2,161 2,819
Current income tax liabilities 342 342 2,196
TOTAL CURRENT LIABILITIES 42,310 38,816 28,657
TOTAL LIABILITIES 79,642 79,642 49,748
TOTAL EQUITY AND LIABILITIES 121,819 107,647 92,445

.

Separate income statement of Piquadro S,p,A, for the period ended March 31, 2020 and March 31, 2019

(in thousands of Euro) Twelve
months as of
March 31,
2020
% on
Revenue
Twelve
months as of
March 31,
2020
escluding
IFRS16 (*)
% on
Revenue
Twelve
months
as of
March
31,
2019
% on
Revenue
Var %
March 31,
2020
excluding
IFRS16
vs March
31, 2019
REVENUES
Revenues from sales 69,717 93,9% 69,717 93,9% 72,792 96,7% (4,2%)
Other income 4,496 6,1% 4,496 6,1% 2,445 3,3% 83,9%
TOTAL REVENUES (A) 74,214 100,0% 74,214 100,0% 75,237 100,0% (1,4%)
OPERATING COSTS
Change in inventories (2,348) (3,2%) (2,348) (3,2%) (989) (1,3%) 137,3%
Costs for purchases 26,179 35,3% 26,179 35,3% 22,782 30,3% 14,9%
Costs for services and leases and rental 26,140 35,2% 30,119 40,6% 29,820 39,6% 1,0%
Personnel costs 12,926 17,4% 12,926 17,4% 12,630 16,8% 2,3%
Amortisation, depreciation and write-downs 6,898 9,3% 2,747 3,7% 2,920 3,9% (5,9%)
Other operating costs 330 0,4% 330 0,4% 265 0,4% 24,8%
TOTAL OPERATING COSTS (B) 70,124 94,5% 69,952 94,3% 67,427 89,6% 3,7%
OPERATING PROFIT (A-B) 4,089 5,5% 4,261 5,7% 7,810 10,4% (45,4%)
FINANCIAL INCOME AND CHARGES
Earning (losses) from Financial assets (167) (0,2%) (167) (0,2%) (175) (0,2%) (4,7%)
Financial income 1,463 2,0% 1,463 2,0% 1,051 1,4% 39,1%
Financial charges (792) (1,1%) (390) (0,5%) (591) (0,8%) (34,1%)
TOTAL FINANCIAL INCOME AND CHARGES 504 0,7% 907 1,2% 284 0,4% 219,0%
PRE-TAX RESULT 4,593 6,2% 5,168 7,0% 8,094 10,8% (36,2%)
Income tax expenses (1,220) (1,6%) (1,357) 1,8% (2,667) (3,5%) (49,1%)
PROFIT FOR THE PERIOD 3,374 4,5% 3,810 5,1% 5,428 7,2% (29,8%)
EBITDA 10,387 14,0% 6,408 8,6% 9,544 12,7% (32,9%)

(*) The economic financial data in the column "12 months at March 31, 2020 excluding IFRS 16", referencing to the operating result, EBITDA and net result for the period, have been determined excluding the impacts deriving from the implementation of the new accounting standard IFRS 16.

Piquadro S,p,A, cash flow statement as at March 31, 2020 and March 31, 2019

(in thousands of Euro) March 31,
2020
March 31,
2019
Pre-tax profit 4,593 8,094
Adjustments for:
Depreciation of property, plant and equipment/Amortisation of intangible assets
Write off tangible and intangible assets
1,485
66
1,734
0
Depreciation of Right of Use 3,896 0
Write-downs of Right of Use 853 0
Other provisions 111 0
Provision for bad debts 600 1,186
revaluation of equity investments 167 174
Adjustment to the provision for employee benefits 618 4
Net financial charges (income), including exchange rate differences (671) (460)
Cash flow from operating activities before changes in working capital 11,719 10,734
Change in trade receivables (net of the provision) 3,781 (2,990)
Change in trade receivables (group companies) (2,167) (3,439)
Change in inventories (2,348) (989)
Change in other current assets (1,249) 787
Change in trade payables 3,793 58
Change in trade payables (group companies) 519 1,203
Change in provisions for risks and charges (904) 128
Change in other current liabilities (1,537) 3,395
Change in tax receivables/payables
Cash flow from operating activities after changes in working capital
(2,759)
8,847
(173)
8,714
Payment of taxes (1,628) (2,775)
Interest paid (53) 460
Cash flow generated from operating activities (A) 7,167 6,399
Investments in intangible assets (714) (197)
Investments in property, plant and equipment 0 (888)
Disinvestments in property, plant and equipment (1,355) 40
Investments in financial assets 0 (20)
Disinvestments in financial assets 0 0
Investments for Lancel International acquisition 0 (5,292)
Changes generated from investing activities (B) (2,069) (5,473)
Financing activities
Repayment and registering of borrowings 14,939 (2,532)
-
New loans
22,000 10,000
-
Other variations
(7,062) (12,532)
Changes in derivative financial instruments 11 (69)
Lease instalments paid (4,015) (830)
Payment of dividends (4,000) (3,000)
Cash flow generated from/(absorbed by) financing activities (C) 6,934 (6,432)
Net increase (decrease) in cash and cash equivalents (A+B+C) 12,032 (5,505)
Cash and cash equivalents at the beginning of the period 14,041 19,546
Cash and cash equivalents at the end of the period 26,073 14,041
Numero di Pagine: 18

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