Aeffe — Investor Presentation 2018

Nov 8, 2018

AEFFE 9M 2018 Consolidated Financial Results Presentation 8h November 2018

9M 2018 Key Facts

Consolidated Revenues +13.1% at €264.6m, (+12.6% at current exchange rates)

• Consolidated EBITDA for €37.1m, compared to an EBITDA of € 30.4m in 9M 2017, with a €6.7m increase (+22%)
• Net Profit for the Group at €16.1m, compared to a Net Profit of €11.9m in 9M 2017, with a €4.2m improvement (+35%)
• Consolidated Net Financial Debt of € 39.1m, compared to € 66.1m in 9M 2017 (€ 50.6m as of 31 December 2017) with a €27m improvement
• 252 Mono Brand Stores

Net Sales Breakdown by Division(1)

³

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

(1) Italy and Russia excluded

* At constant exchange rates 1Q

2Q 3Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q 3Q

Mono-brand Stores Network

	DOS
	9M18	FY17
Europe	45	44
America	2	3
Asia	18	16
Total	65	63

	Franchising
	9M18	FY17
Europe	47	49
America	1	1
Asia	139	135
Total	187	185

Income Statement – 9M 2018/2017

	9M 18	9M 17
Net Sales	264,6	235,0
% change	12,6%
Other Revenues	3,3	2,6
Total Revenues	267,9	237,6
% change	12,8%
Raw Materials Costs	(85,3)	(73,0)
Service Costs	(73,2)	(65,2)
Costs for use of third parties	(19,4)	(17,7)
Personnel	(50,4)	(47,8)
Other Operating Expenses	(2,5)	(3,4)
Total Operating Expenses	(230,8)	(207,2)
EBITDA	37,1	30,4
Margin (% of Net sales)	14,0%	12,9%
Depreciation and Amortisation	(9,4)	(8,8)
EBIT	27,7	21,6
Margin (% of Net sales)	10,5%	9,2%
Net Financial Income / (Expenses)	(0,7)	(3,0)
Profit before taxes	27,0	18,6
Margin (% of Net sales)	10,2%	7,9%
Taxes	(10,0)	(6,5)
Net income before Minorities	17,0	12,0
Margin (% of Net sales)	6,4%	5,1%
Minority Interests	(0,9)	(0,1)
Net Income for the Group	16,1	11,9
Margin (% of Net sales)	6,1%	5,1%

Balance Sheet

	9M 18	FY 17	9M 17
Net Working Capital	90,4	81,3	95,8
Net Tangible Assets	59,6	59,1	60,1
Net Intangible Assets	105,3	109,7	111,2
Net Financial Assets	3,2	3,7	3,5
Severance Staff, Provisions & Others	(23,1)	(24,8)	(25,2)
Net Capital Employed	235,4	229,0	245,4
Group Shareholders' Equity	163,0	146,1	146,9
Minorities	33,2	32,3	32,4
Shareholders' Equity & Minorities	196,3	178,4	179,3
Net Debt	33,6	45,1	60,6
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	235,4	229,0	245,4
Accounts Receivables	48,5	42,1	50,6
Accounts Payables	(60,8)	(68,6)	(53,6)
Inventory	96,6	97,8	91,9
Operating NWC	84,3	71,3	89,0
As % of LTM sales	24,6%	22,8%	29,5%
Other Current Assets/Liabilities	6,1	10,0	6,8
Net Working Capital	90,4	81,3	95,8

Summary Cash Flow

(€m) 9M 18 FY 17 9M 17 PBT 27,0 18,9 18,6 Operating Cash Flow 16,4 17,2 0,1 Capital Expenditure (5,5) (3,8) (3,4) Free Cash Flow 11,0 13,4 (3,4) Cash Flows from Financing Activities (5,3) (5,1) 3,8 Cash and cash equivalents at the beginning of the year 22,8 14,5 14,5 Cash Flow of the Period 5,6 8,3 0,4 Cash and cash equivalents at the end of the year 28,4 22,8 14,9

Appendices

Income Statement – Full Year 2015-2017

	2017A	2016A	2015A
Net Sales	312,6	280,7	268,8
% change	11,4%	4,4%	6,9%
Other Revenues	3,8	6,8	5,2
Total Revenues	316,4	287,5	274,0
% change	10,1%	4,9%	20,1%
Raw Materials Costs	(96,1)	(90,7)	(86,2)
Service Costs	(91,0)	(81,3)	(79,2)
Cost for use of third parties assets	(23,3)	(22,8)	(23,5)
Personnel	(65,3)	(63,5)	(61,1)
Other Operating Expenses	(4,1)	(4,0)	(4,7)
Total Operating Expenses	(279,8)	(262,3)	(254,7)
EBITDA	36,6	25,2	19,3
Margin (% of Net sales)	11,7%	9,0%	7,2%
Depreciation and Amortisation	(13,9)	(15,1)	(13,5)
EBIT	22,7	10,1	5,9
Margin (% of Net sales)	7,3%	3,6%	2,2%
Net Financial Income / (Expenses)	(3,7)	(1,8)	(3,0)
PBT	19,0	8,3	2,9
Margin (% of Net sales)	6,1%	3,0%	1,1%
Taxes	(7,4)	(4,0)	(1,1)
Net income before Minorities	11,5	4,4	1,70
Margin (% of Net sales)	3,7%	1,6%	0,6%
Minority Interests	(0,0)	(0,7)	(0,2)
Net Income for the Group	11,5	3,6	1,5
Margin (% of Net sales)	3,7%	1,3%	0,6%

Company Profile

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)

Share Information Investor Relations

Investor Relations

AEFFE S.p.A

Annalisa Aldrovandi

+39 0541 965494

annalisa.aldrovandi@aeffe.com

www.aeffe.com

Disclaimer

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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 includes 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 dater 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.