Aeffe — Investor Presentation 2018

May 10, 2018

AEFFE First Quarter 2018 Consolidated Financial Results Presentation 10th May 2018

Consolidated Revenues +20.3% at € 95.2m, (+19.7% at current exchange rates);

Consolidated EBITDA for € 20.3m (21.4% of sales), compared to an EBITDA of € 15.4m (19.4% of sales) in 1Q 2017, with a € 4.9m improvement (+32%)

Net Profit for the Group at € 11.3m, compared to a Net Profit of € 8.1m in 1Q 2017, with a €3.2m improvement (+39%)

Consolidated Net Financial Debt of € 53.8m, compared to € 64.4m as of 31 March 2017, with a € 10.6m improvement (€ 50.6m as of 31 December 2017)

244 Mono Brand Stores

Orders backlog of Fall/Winter 2018/2019 collections +12%

Net Sales Breakdown by Division(1)

(1) Before inter-divisional eliminations

Net Sales Breakdown by Brand

* Change vs 1Q 2017 at constant exchange rates

Net Sales Breakdown by Region

(1) Italy and Russia excluded

* Change vs 1Q 2017 at constant exchange rates

Net Sales Breakdown by Channel

^* Change vs 1Q 2017 at constant exchange rates

Mono-brand Stores Network

	DOS
	1Q18	FY17
Europe	44	44
America	2	3
Asia	17	16
Total	63	63

	Franchising
	1Q18	FY17
Europe	45	49
America	1	1
Asia	135	135
Total	181	185

Income Statement – 1Q 2018/2017

(€m)
	1Q 18	1Q 17
Net Sales	95,2	79,6
% change	19,7%	4,4%
Other Revenues	0,9	1,8
Total Revenues	96,1	81,4
% change	18,1%	5,2%
Raw Materials Costs	(26,6)	(21,7)
Service Costs	(25,1)	(21,1)
Costs for use of third parties	(6,5)	(5,9)
Personnel	(16,9)	(16,1)
Other Operating Expenses	(0,7)	(1,2)
Total Operating Expenses	(75,8)	(66,0)
EBITDA	20,3	15,4
Margin (% of Net sales)	21,4%	19,4%
Depreciation and Amortisation	(3,0)	(2,9)
EBIT	17,3	12,5
Margin (% of Net sales)	18,2%	15,7%
Net Financial Income / (Expenses)	(0,5)	(0,3)
Profit before taxes	16,9	12,2
Margin (% of Net sales)	17,7%	15,4%
Taxes	(5,1)	(3,5)
Net income/(loss) before Minorities	11,8	8,7
Margin (% of Net sales)	12,4%	10,9%
Minority Interests	(0,6)	(0,6)
Net Income/(Loss) for the Group	11,3	8,1
Margin (% of Net sales)	11,8%	10,2%

Balance Sheet

	1Q 18	FY 17	1Q 17
(€m) Net Working Capital	94,8	81,3	88,6
Net Tangible Assets	58,5	59,1	60,8
Net Intangible Assets	108,4	109,7	113,8
Net Financial Assets	3,3	3,7	3,9
Severance Staff, Provisions & Others	(20,9)	(24,8)	(26,3)
Net Capital Employed	244,1	229,0	240,8
Group Shareholders' Equity	157,4	146,1	143,5
Minorities	32,9	32,3	32,9
Shareholders' Equity & Minorities	190,3	178,4	176,4
Net Debt	48,3	45,1	58,9
Shares Buyback	5,5	5,5	5,5
Net Financial Debt and Shareholders' Equity	244,1	229,0	240,8
Accounts Receivables	49,3	42,1	42,5
Accounts Payables	(58,9)	(68,6)	(53,6)
Inventory	97,8	97,8	95,0
Operating NWC	88,2	71,3	84,0
As % of LTM sales	26,9%	22,8%	29,6%
Other Current Assets/Liabilities	6,6	10,0	4,6
Net Working Capital	94,8	81,3	88,6

Summary Cash Flow

(€m)	1Q 18	FY 17	1Q 17
PBT	16,9	18,9	12,2
Operating Cash Flow	1,9	17,2	(3,4)
Capital Expenditure	(5,1)	(3,8)	(1,0)
Free Cash Flow	(3,2)	13,4	(4,4)
Cash Flows from Financing Activities	6,3	(5,1)	3,1
Cash and cash equivalents at the beginning of the year	22,8	14,5	14,5
Cash Flow of the Period	3,1	8,3	(1,3)
Cash and cash equivalents at the end of the year	25,9	22,8	13,2

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

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

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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.