Aeffe — Investor Presentation 2017

Nov 9, 2017

AEFFE 9M 2017 Results Presentation 9th November 2017

9M 2017 Key Facts

• Consolidated Revenues +10.0% at € 235.0m, (+9.9% at current exchange rates)
• Consolidated EBITDA for € 30.4m, compared to an EBITDA of € 21.3m in 9M 2016, with a €9.1m increase (+43%)
• Consolidated Net Profit for the Group at €11.9m, compared to a Net Profit of € 4.9m in 9M 2016, with a €7.0m increase (+144%)
• Consolidated Net Financial Debt of € 66.1m, compared to € 77.6m in 9M2016, with a €11.5m improvement (€ 59.5m as of 31 December 2016)
• 242 Mono Brand Stores
• S/S 2018 collections orders' backlog up by 15% compared with S/S 2017

Net Sales Breakdown by Division(1)

(1) Before inter-divisional eliminations

1Q2Q 3Q

3

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

38,3 18,0 2,6 5,9 14,8 33,8 13,9 2,0 3,8 16,9 43,9 16,9 2,6 5,1 16,5 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 110,0 120,0 Italy Europe Russia USA RoW 33,1 17,9 2,3 6,7 16,2 27,5 12,3 2,5 4,4 14,9 35,9 16,3 2,5 5,9 15,3 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0 110,0 120,0 Italy Europe Russia USA RoW Italy Europe Russia USA RoW % on Total SalesItaly Europe Russia USARoW9M 201721% 21% 3%49%6%% on Total Sales (€m) (€m) +20.2% *+5.8% *(3.0%) * (13.4%) * +3.8% *22% 22% 3%45%8%(1) (1) 96,5 46.47.317.146.4116,0 48.87.214.848.2

(1) Italy and Russia excluded

* At constant exchange rates

2Q3Q

1Q

9M 2016

Net Sales Breakdown by Channel

* At constant exchange rates

1Q2Q3Q

Mono-brand Stores Network

	9 M 1 7	F Y 1 6
Eu ro p e	4 5	4 5
ica Am er	3	3
As ia	1 4	1 6
To l ta	6 2	6 4

DOS

Franchising

	9 M 1 7	F Y 1 6
Eu ro p e	4 8	5 0
Am ica er	1	2
ia As	1 3 1	1 3 9
l To ta	1 8 0	1 9 1

Income Statement – 9M 2017/2016

( €m )		M 9 1 7	M 9 1 6
	Ne Sa les t	2 3 5, 0	2 1 3, 8
	ha % c ng e	9, 9 %
	O he Re t r ve nu es	2, 6	5, 3
	To l Re ta ve nu es	2 3 6 7,	2 1 9, 1
	% ha c ng e	8, 0 %
	Co Ra Ma te ia ls ts w r s	( ) 7 3, 0	( ) 6 8, 8
	Se ice Co ts rv s	( ) 6 5, 2	( ) 6 1, 6
	Co fo f h ir d ies ts t t s r u se o p ar	( ) 1 7, 7	( ) 1 7, 4
	Pe l rso nn e	( ) 4 7, 8	( ) 4 7, 0
	O he O ing Ex t t r p er a p en se s	( ) 3, 4	( ) 3, 0
	l Op ing To ta t Ex er a p en se s	( ) 2 0 7, 2	( ) 1 9 7, 8
	E B I T D A	3 0, 4	2 1, 3
	( ) in % f les M Ne t s ar g o a	% 1 2, 9	% 1 0, 0
	De ia io d Am isa io t t t p re c n an or n	( ) 8, 8	( ) 9, 1
	E B I T	2 1, 6	1 2, 2
	( ) M in % f Ne les t s ar g o a	9, 2 %	5, 7 %
	( ) ina ia l / Ne t F Inc Ex nc om e p en se s	( ) 3, 0	( ) 1, 7
	f i be fo Pr t ta o re xe s	1 8, 6	1 0, 5
	( ) in % f les M Ne t s ar g o a	% 7, 9	% 4, 9
	Ta xe s	( ) 6, 5	( ) 5, 1
	( ) Ne in / lo be fo M in i ie t t co m e ss re or s	1 2, 0	5, 4
	( ) M in % f Ne les t s ar g o a	5, 1 %	2, 5 %
	ino i M ty In te ts r re s	( ) 0, 1	( ) 0, 5
	( ) / fo he Gr Ne t In Lo t co m e ss r ou p	1 1, 9	4, 9
	( ) in % f les M Ne t s ar g o a	% 5, 1	% 2, 3

Summary Balance Sheet

(€m)

	9 M 1 7	F Y 1 6	9 M 1 6
Ne W k ing Ca i l t ta or p	9 5, 8	7 3, 1	9 1, 7
Ne Ta i b le As t ts ng se	6 0, 1	6 1, 4	6 1, 5
i b le Ne t In ta As ts ng se	1 1 1, 2	1 1 5, 1	1 1 6, 4
Ne F ina ia l As t ts nc se	3, 5	4, 1	3, 9
Se S f f, Pr is io O he ta & t ve ra nc e ov ns rs	( ) 2 5, 2	( ) 2 6, 1	( ) 2 7, 3
Ne t Ca i ta l Em lo d p p e y	2 4 5, 4	2 2 7, 6	2 4 6, 2
Gr S ha ho l de ' Eq i ty ou p re rs u	1 4 6, 9	1 3 5, 8	1 3 6, 2
ino i ies M t r	3 2, 4	3 2, 3	3 2, 4
S ha ho l de ' Eq i M ino i ies ty & t re rs u r	9, 3 1 7	8, 1 6 1	8, 1 6 6
Ne De b t t	6 0, 6	5 4, 0	7 2, 1
S ha Bu ba k re s c y	5, 5	5, 5	5, 5
Ne F in ia l De b d S ha ho l de ' Eq i t t a ty an c n re rs u	2 4 5, 4	2 2 7, 6	2 4 6, 2
Ac Re iva b les ts co un ce	5 0, 6	4 0, 7	4 5, 6
Ac ts Pa b les co un a y	( ) 5 3, 6	( ) 6 1, 9	( ) 4 7, 6
Inv to en ry	9 1, 9	8 9, 4	8 8, 8
Op in N W C t er a g	8 9, 0	6 8, 2	8 6, 8
As % f L T M les o sa	2 9, 5 %	2 4, 3 %	3 1, 4 %
/ O he Cu As L ia b i l i ies t t ts t r rre n se	6, 8	4, 8	4, 9
k in Ca i l Ne t W ta or g p	9 5, 8	7 3, 1	9 1, 7

Summary Cash Flow

(€m)

	9 M 1 7	F Y 1 6	9 M 1 6
P B T	1 8, 6	8, 3	1 0, 5
Op ing Ca h F lo t er a s w	0, 1	1 0, 7	( ) 8, 6
Ca i l d i ta Ex tu p p en re	( ) 3, 4	( ) 2, 3	( ) 0, 8
Fre Ca h F lo e s w	( ) 3, 4	8, 4	( ) 9, 4
Ca h F lo fro F ina ing Ac iv i ies t t s w s m nc	3, 8	( ) 3, 9	8, 0
Ca h d h iva len ts t t he be inn ing f t he s an ca s eq a g o ea r u y	3, 8	1 0, 0	1 0, 0
Ca h F lo f he Pe io d t s w o r	1 4, 5	4, 5	( ) 1, 4
Ca h d h iva le he d f he ts t t t s an ca s eq u n a e n o y ea r	1 8, 3	1 4, 5	8, 6

Income Statement – Full Year 2014-2016

(€m)

	2016A	2015A	2014A
Net Sales	280,7	268,8	251,5
% change	4,4%	6,9%	0.2%
Other Revenues	6,8	5,2	4,3
Total Revenues	287,5	274,0	255,9
% change	4,9%	20,1%	(1.0%)
Raw Materials Costs	(90,7)	(86, 2)	(77, 9)
Service Costs	(81,3)	(79, 2)	(68, 6)
Cost for use of third parties assets	(22,8)	(23, 5)	(21, 2)
Personnel	(63, 5)	(61,1)	(58, 6)
Other Operating Expenses	(4, 0)	(4,7)	(3,8)
Total Operating Expenses	(262,3)	(254,7)	(230, 2)
EBITDA	25,2	19,3	25,7
Margin (% of Net sales)	9,0%	7,2%	10,2%
Depreciation and Amortisation	(15,1)	(13,5)	(13,7)
EBIT	10,1	5,9	12,0
Margin (% of Net sales)	3,6%	2,2%	4,8%
Net Financial Income / (Expenses)	(1,8)	(3,0)	(5, 9)
PBT	8,3	2,9	6,1
Margin (% of Net sales)	3.0%	1,1%	2,4%
Taxes	(4, 0)	(1,1)	(2,1)
Net income before Minorities	4,4	1,70	4,01
Margin (% of Net sales)	1,6%	0.6%	1,6%
Minority Interests	(0,7)	(0, 2)	(1,3)
Net Income for the Group	3,6	1,5	2,7
Margin (% of Net sales)	1,3%	0.6%	1.1%

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 9 november 2017

Disclaimer

This presentation is being furnished to you solely for your information on ^a confidential basis and may not be reproduced or redistributed to any other person.

This presentation does not constitute or form part of any offer to sell or invitation to purchase or subscribe for, or otherwise acquire or dispose of any Aeffe S.p.A. securities.

This presentation might contain certain forward-looking statements which are based on the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are subject to risks and uncertainties. In light of these risks and uncertainties, the events described in such forward-looking statements may not occur and any targets or projections may differ materially from those expressed in or implied by these statements due to any number 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 date of this presentation. Aeffe S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements 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 such performance, trends or activities will continue in the future.

The executive responsible for preparing the company's accounting documentation Marcello Tassinari declares pursuant to paragraph 2 of art. 154 bis of Legislative Decree no. 58 of 1998 that the accounting information contained in this document agrees with underlying documentation, records and accounting entries.