Aeffe

Investor Presentation • Jul 27, 2017

AEFFE First Half 2017 Results Presentation 27th July 2017

1H 2017 Key Facts

Consolidated Revenues +8.8% at €150m, (+8.6% at constant exchange rates)

• Consolidated EBITDA for €15.5m, compared to an EBITDA of € 12.2m in 1H 2016, with a €3.3m increase (+26.7%)
• Net Profit for the Group at €4.6m, compared to a Net Profit of €1.5m in 1H 2016, with a €3.1m improvement (+214%)
• Consolidated Net Financial Debt of € 67.1m, compared to € 76.3m in 1H 2016 (€ 59.5m as of 31 December 2016)
• 242 Mono Brand Stores

Net Sales Breakdown by Division(1)

(1) Before inter-divisional eliminations

3

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

(1) Italy and Russia excluded

1Q * At constant exchange rates

2Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q

Mono-brand Stores Network

	DOS
	1H17	FY16
Europe	45	45
America	3	3
Asia	14	16
Total	62	64

Franchising

	1H17	FY16
Europe	47	50
America	1	2
Asia	132	139
Total	180	191

Income Statement – 1H 2017/2016

	1H 17	1H 16
Net Sales	150,0	137,8
% change	8,8%
Other Revenues	1,4	5,8
Total Revenues	151,3	143,6
% change	5,4%
Raw Materials Costs	(47,3)	(45,2)
Service Costs	(42,6)	(40,6)
Costs for use of third parties	(11,5)	(11,5)
Personnel	(32,4)	(31,8)
Other Operating Expenses	(2,0)	(2,3)
Total Operating Expenses	(135,8)	(131,4)
EBITDA	15,5	12,2
Margin (% of Net sales)	10,3%	8,9%
Depreciation and Amortisation	(5,9)	(6,1)
EBIT	9,6	6,1
Margin (% of Net sales)	6,4%	4,5%
Net Financial Income / (Expenses)	(2,2)	(1,4)
Profit before taxes	7,4	4,7
Margin (% of Net sales)	4,9%	3.5%
Taxes	(2,8)	(2,9)
Net income/(loss) before Minorities	4,5	1,8
Margin (% of Net sales)	3,0%	1,3%
Minority Interests	0,1	(0,4)
Net Income/(Loss) for the Group	4,6	1,5
Margin (% of Net sales)	3,1%	1,1%

8

Summary Balance Sheet

	1H 17	FY 16	1H 16
Net Working Capital	88,4	73,1	84,5
Net Tangible Assets	60,1	61,4	62,1
Net Intangible Assets	112,5	115,1	117,7
Net Financial Assets	3,5	4,1	3,9
Severance Staff, Provisions & Others	(25,3)	(26,1)	(27,2)
Net Capital Employed	239,1	227,6	241,0
Group Shareholders' Equity	139,7	135,8	132,4
Minorities	32,2	32,3	32,3
Shareholders' Equity & Minorities	171,9	168,1	164,7
Net Debt	61,6	54,0	70,8
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	239,1	227,6	241,0
Accounts Receivables	40,7	40,7	37,8
Accounts Payables	(54,9)	(61,9)	(50,8)
Inventory	91,3	89,4	88,9
Operating NWC	77,1	68,2	75,9
As % of LTM sales	26,3%	24,3%	27,3%
Other Current Assets/Liabilities	11,3	4,8	8,6
Net Working Capital	88,4	73,1	84,5

Summary Cash Flow

(€m)

1H 17	FY 16	1H 16
7,4	8,3	4,8
(3,5)	10,7	(8,4)
(1,9)	(2,3)	0,3
(5,4)	8,4	(8,1)
0,6	(3,9)	9,0
14,5	10,0	10,0
(4,7)	4,5	0,8
9,8	14,5	10,8

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 Investor Relations

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

AEFFE S.p.A

Annalisa Aldrovandi

+39 0541 965494

annalisa.aldrovandi@aeffe.com

www.aeffe.com

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.