Aeffe — Investor Presentation 2015

Nov 11, 2015

9M 2015 Key Facts

• Consolidated Revenues +7% at € 206.5m, (+5.1% at constant exchange rates)
• Consolidated EBITDA for € 17.9m, compared to an EBITDA of € 22.6m in 9M 2014, with a €4.7m decrease
• Consolidated Net Profit for the Group at €1.5m, compared to a Net Profit of € 2.5m in 9M 2014, with a €1m decrease
• Consolidated Net Financial Debt of € 99.5m (€ 83.6m as of 31 December 2014)
• ²⁴⁴ Mono Brand Stores

Net Sales Breakdown by Division(1)

2Q

1Q

3Q

3

Net Sales Breakdown by Brand

7,9 3,745,97,7 5,9 4,92,241,46,2 2,97,12,953,58,65,70102030405060708090100110120130140150AlbertaFerrettiPhilosophy Moschino Pollini Others 7,0 6,0 39,0 8,3 7,5 3,4 2,2 36,3 7,1 4,2 6,0 3,6 46,3 10,2 5,8 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Alberta Ferretti Philosophy Moschino Pollini Others % on Total Sales+18.8% *+14.0% *(12.7%) *(27.7%) *9M 2015 9M 2014 Alberta FerrettiMoschinoPolliniPhilosophy di Lorenzo SerafiniOthers62% 9% 9%% on Total SalesAlberta Ferretti MoschinoPolliniPhilosophy di Lorenzo SerafiniOthers 68% 7% 11%10%(€m) (€m) * At constant exchange rates 1Q7%13%4%(20.8%) *16.411.8121.625.617.519.98.8140.822.514.52Q 3Q diLorenzo Serafinidi Lorenzo Serafini

Net Sales Breakdown by Region

28,9 16,9 5,1 3,5 1,5 11,7 24,0 11,5 4,4 3,6 1,8 8,2 34,7 14,5 4,1 4,3 1,7 12,5 0 10 20 30 40 50 60 70 80 90 100 Italy Europe Russia USA Japan RoW ItalyEuropeRussia USA Japan RoW32,0 16,5 2,4 5,2 1,8 13,3 25,1 12,2 2,3 4,5 2,1 11,3 35,5 15,8 2,3 6,6 1,7 15,9 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 Italy Europe Russia USA Japan RoW % on Total SalesItalyEuropeRussia USAJapanRoW9M 2015 9M 2014 21% 20% 3%45%8%% on Total Sales (€m) (€m) +5.7% *+2.0% *(48.4%) *+20.9% *+23.4% *+12.8% *3%22% 17% 7%45%6% 3%(1)(1)92.644.57.016.35.640.587.642.913.6 11.45.032.4

(1) Italy and Russia excluded

* At constant exchange rates

1Q 2Q3Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q2Q3Q

Mono-brand Stores Network

	9M15	FY14
Europe	47	47
USA	3
Asia	8	12
Total	58	60

DOS

Franchising

	9M15	FY14
Europe	48	54
USA	3	3
Asia	135	129
Total	186	186

Income Statement - 9M 2015/2014

$(\epsilon m)$	9M 15	9M 14
Net Sales	206,5	192,9
% change	7.0%
Other Revenues	3,2 п.	3,2
Total Revenues	209,7	196,1
% change	6.9%
Raw Materials Costs	(66, 8)	(60, 6)
Service Costs	(58, 6)	(50,1)
Costs for use of third parties	(17,7)	(16,0)
Personnel	(45,2)	(43,8)
Other Operating Expenses	T. (3, 4)	(3,1)
Total Operating Expenses	(191, 8)	(173, 5)
EBITDA	17,9	22,6
Margin (% of Net sales)	8,7%	11,7%
Depreciation and Amortisation	(9, 6)	(9, 9)
EBIT	8,4	12,7
Margin (% of Net sales)	4,0%	6,6%
Net Financial Income / (Expenses)	(2,7)	(5,1)
Profit before taxes	5,7	7,6
Margin (% of Net sales)	2,8%	4,0%
Taxes	(4, 0)	(4, 2)
Net income/(loss) before Minorities	1,71	3,45
Margin (% of Net sales)	0,8%	1,8%
Minority Interests	(0, 2)	(1, 0)
Net Income/(Loss) for the Group	1,5	2,5
Margin (% of Net sales)	0.7%	1,3%
	$- - - -$

Summary Balance Sheet

$(\epsilon m)$

	9M 15	FY 14	9M 14
Net Working Capital	103,1	81,7	90,6
Net Tangible Assets	63,7	63,8	63,3
Net Intangible Assets	124,2	127,9	128,6
Net Financial Assets	4,6	4,8	4,5
Severance Staff, Provisions & Others	(46, 4)	(46, 6)	(48, 6)
Net Capital Employed	249,1	231,5	238,3
Group Shareholders' Equity	131,5	130,1	130,5
Minorities	18,1	17,9	17,6
Shareholders' Equity & Minorities	149,6	148,0	148,2
Net Debt	94,0	78,1	84,7
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	249,1	231,5	238,3
Accounts Receivables	50,0	36,9	45,5
Accounts Payables	(46, 8)	(55,1)	(43,5)
Inventory	87,4	83,9	79,1
Operating NWC	90,6	65,7	81,1
As % of LTM sales	34,0%	26,1%	32,0%
Other Current Assets/Liabilities	12,5	16,0	9,5
Net Working Capital	103,1	81,7	90,6

AEFFE

Summary Cash Flow

(€m)
	9M 15	FY 14	9M14
PBT	5,7	6,1	7,6
Operating Cash Flow	(7,8)	16,9	5,5
Capital Expenditure	(5,7)	(6, 6)	(3,6)
Free Cash Flow	(13.5)	10,3	2,0
Cash Flows from Financing Activities	13,9	(11,1)	(3,1)
Cash and cash equivalents at the beginning of the year	6,7	7,5	7,5
Cash Flow of the Period	0,4	(0,8)	(1,1)
Cash and cash equivalents at the end of the year	7,1	6,7	6,4

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

(1) Source: Consob as of 11 November 2015

Cash Flow Statement

$(\infty)$	9M 15	FY 14	9M 14
PBT	5,7	6,1	7,6
Depreciation & Amortisation	9,6	13,7	9,1
Provisions & Impairments	(1,7)	0,5	(0,3)
Taxes	(3, 5)	(3.6)	(3,0)
Net Interest	2,7	5,9	5,1
Change in other liabilities / (assets)	(20,6)	(5,7)	(13,0)
Operating Cash Flow	(7,8)	17,0	5,5
Capital expenditure for intangible assets	(1,6)	(2,1)	(1, 0)
Capital expenditure for tangible assets	(4, 0)	(4, 5)	(2,6)
(Increase) / decrease in investments in other fixed assets	(0,1)	(0,1)	0,0
Cash Flows from Financing Activities	(5,7)	(6, 6)	(3, 6)
Free Cash Flow	(13, 5)	10,3	2,0
Equity Issue	(0,1)	0,5	1,3
Change in short term debt	17,8	(5,7)	0,4
Change in long term debt	(1, 2)	(0,1)	0,2
Net Interest	(2,7)	(5, 9)	(5,1)
Cash Flows from Financing Activities	13,9	(11,1)	(3,1)
Cash and cash equivalents at the beginning of the year	6,7	7,5	7,5
Cash Flow of the Period	0,4	(0,8)	(1,1)

Income Statement – Full Year 2012-2014

( €m )

Important Information

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