Aeffe

Annual Report • Mar 10, 2016

Consolidated Revenues +7% at € 268.8, (+5.1% at constant exchange rates);

Consolidated EBITDA for € 19.3m (7.2% of sales), compared to an EBITDA of € 25.7m (10.2% of sales) in FY 2014

Net Profit for the Group at € 1.5m, compared to a Net Profit of € 2.7m in FY 2014

Consolidated Net Financial Debt of € 80.5m, compared to € 83.5m as of 31 December 2014, with a € 3m improvement

²⁴⁶ Mono Brand Stores

Net Sales Breakdown by Division(1)

3

Net Sales Breakdown by Brand

(1) Philosophy di Lorenzo Serafini In ²⁰¹⁵ positive effect of the revamping of the brand not recorded yet . ²⁰¹⁶ will benefit both from strong Spring/Summer ²⁰¹⁶ orders' backlog (+34% compared With Spring/Summer 2015) and excellent growth trend of Autumn/Winter ²⁰¹⁶ recorded so far.

(2) Polllini Strong focus on offsetting Russian decline with ^a strenghtening of the brand positioning in other regions such as Italy and Eastern Europe. Positive trend of the orders' backlog of Autumn/Winter ²⁰¹⁶ collections registered so far.

Net Sales Breakdown by Region

(1) Italy and Russia excluded

* At constant exchange rates

1Q 2Q3Q4Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q2Q3Q4Q

Mono-brand Stores Network

	FY15	FY14
Europe	47	47
USA	3	1
Asia	11	12
Total	61	60

DOS

	FY15	FY14
Europe	45	54
USA	3	3
Asia	137	129
Total	185	186

Income Statement - FY 2015/2014

(€m)
	FY 15	FY 14
Net Sales	268,8	251,5
% change	6,9%
Other Revenues	5,2	4,3
Total Revenues	274,0	255,9
% change	7.1%
Raw Materials Costs	(86, 2)	(77, 9)
Service Costs	(79, 2)	(68, 6)
Costs for use of third parties	(23,5)	(21,2)
Personnel	(61,1)	(58, 6)
Other Operating Expenses	(4,7)	(3,8)
Total Operating Expenses	(254,7)	(230, 2)
EBITDA	19,3	25,7
Margin (% of Net sales)	7,2%	10,2%
Depreciation and Amortisation	(13.5)	(13,7)
EBIT	5,9	12,0
Margin (% of Net sales)	2,2%	4,8%
Net Financial Income / (Expenses)	(3,0)	(5, 9)
Profit before taxes	2,9	6,1
Margin (% of Net sales)	1.1%	2,4%
Taxes	(1,1)	(2,1)
Net income/(loss) before Minorities	1,70	4,01
Margin (% of Net sales)	0,6%	1,6%
Minority Interests	(0, 2)	(1,3)
Net Income/(Loss) for the Group	1,5	2,7
Margin (% of Net sales)	0,6%	1.1%

Balance Sheet

$(\epsilon m)$

	FY 15	FY 14
Net Working Capital	82,3	81,7
Net Tangible Assets	63,3	63,8
Net Intangible Assets	122,8	127,9
Net Financial Assets	4,4	4,8
Severance Staff, Provisions & Others	(42, 6)	(46, 6)
Net Capital Employed	230,2	231,5
Group Shareholders' Equity	131,7	130,1
Minorities	17,9	17,9
Shareholders' Equity & Minorities	149,6	148,0
Net Debt	75,0	78,1
Shares Buyback	5,5	5,5
Net Financial Debt and Shareholders' Equity	230,2	231,5
Accounts Receivables	38,3	36,9
Accounts Payables	(61, 4)	(55,1)
Inventory	90,0	83,9
Operating NWC	66,8	65,7
As % of sales	24,8%	26,1%
Other Current Assets/Liabilities	15,5	16,0
Net Working Capital	82,3	81,7

Summary Cash Flow

	FY 15	FY 14
PBT	2,9	6,1
Operating Cash Flow	12,8	16,9
Capital Expenditure	(7,1)	(6, 6)
Free Cash Flow	5,7	10,3
Cash Flows from Financing Activities	(2, 4)	(11,1)
Cash and cash equivalents at the beginning of the year	6,7	7,5
Cash Flow of the Period	3,3	(0,8)
Cash and cash equivalents at the end of the year	10	6,7

Company Profile

Share Information

• N°of shares outstanding: 107,362,504
• Italian Stock Exchange STAR Segment
• Specialist: Mediobanca S.p.A.
• Tickers: AEF IM (Bloomberg) AEF MI (Reuters), AEF (Borsa Italiana)

Investor Relations

• Investor Relations
• AEFFE S.p.A
• Annalisa Aldrovandi
• +39 0541 965494

annalisa.aldrovandi@aeffe.com

www.aeffe.com

Cash Flow Statement

(€m)
	FY 15	FY 14
PBT	2,9	6,1
Depreciation & Amortisation	13,5	13,7
Provisions & Impairments	(1, 9)	0,5
Taxes	(3, 6)	(3,6)
Net Interest	3,0	5,9
Change in other liabilities / (assets)	(1,1)	(5,7)
Operating Cash Flow	12,8	17,0
Capital expenditure for intangible assets	(2,0)	(2,1)
Capital expenditure for tangible assets	(5,0)	(4, 5)
(Increase) / decrease in investments in other fixed assets	(0,1)	(0,1)
Cash Flows from Financing Activities	(7,1)	(6, 6)
Free Cash Flow	5,7	10,3
Equity Issue	(0,1)	0,5
Change in short term debt	1,4	(5,7)
Change in long term debt	(0,7)	(0,1)
Net Interest	(3,0)	(5, 9)
Cash Flows from Financing Activities	(2, 4)	(11,1)
Cash and cash equivalents at the beginning of the year	6,7	7,5
Cash Flow of the Period	3,3	(0,8)
Cash and cash equivalents at the end of the year	10,0	6,7

Income Statement – Full Year 2013-2015

(€m)

	2015A	2014A	2013A
Net Sales	268,8	251,5	251,1
% change	6,9%	0.2%	$(1,2\%)$
Other Revenues	5,2	4,3	7,5
Total Revenues	274,0	255,9	258,6
% change	20,1%	(1.0%)	(1.0%)
Raw Materials Costs	(86, 2)	(77, 9)	(79, 2)
Service Costs	(79,2)	(68, 6)	(66, 9)
Cost for use of third parties assets	(23,5)	(21,2)	(25,5)
Personnel	(61,1)	(58, 6)	(63,1)
Other Operating Expenses	(4,7)	(3,8)	(3,3)
Total Operating Expenses	(254,7)	(230, 2)	(238, 0)
EBITDA	19,3	25,7	20,6
Margin (% of Net sales)	7,2%	10,2%	8,2%
Depreciation and Amortisation	(13,5)	(13,7)	(14, 6)
EBIT	5,9	12,0	6,0
Margin (% of Net sales)	2,2%	4,8%	2,4%
Net Financial Income / (Expenses)	(3,0)	(5, 9)	(6,7)
PBT	2,9	6,1	(0,7)
Margin (% of Net sales)	1.1%	2,4%	n.a
Taxes	(1,1)	(2,1)	(1,3)
Net income before Minorities	1,70	4,01	(1, 97)
Margin (% of Net sales)	0,6%	1,6%	n.a
Minority Interests	(0, 2)	(1,3)	(1, 2)
Net Income for the Group	1,5	2,7	(3,2)
Margin (% of Net sales)	0,6%	1.1%	$n_{\rm q}$

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This presentation includes forward-looking statements which are based on the Company's management's current views with respect tofuture events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements aresubject to risks and uncertainties. In light of these risks and uncertainties, the events described in such forward-looking statements maynot occur and any targets or projections may differ materially from those expressed in or implied by these statements due to anynumber of different factors.

You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the daterof this presentation. Aeffe S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-lookingstatements to reflect events or circumstances after the date of this presentation.

Any reference to past performance or trends or activities of Aeffe Group shall not be taken as ^a representation or indication that suchperformance, trends or activities will continue in the future.