Aeffe

Investor Presentation • Mar 8, 2018

AEFFE FY2017 Consolidated Financial Results Presentation 8th March 2018

FY 2017 Key Facts

Consolidated Revenues +11.6% at € 312.6m, (+11.4% at current exchange rates)

• Consolidated EBITDA for € 36.6m, compared to an EBITDA of € 25.2m in 2016, with a €11.4m increase (+45%)
• Consolidated Net Profit for the Group at €11.5m, compared to a Net Profit of € 3.6m in 2016, with a €7.9m increase (+216%)
• Consolidated Net Financial Debt of € 50.6m (€ 59.5m as of 31 December 2016), with a €8.9m improvement (-15%)
• 248 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

1Q * At constant exchange rates

2Q 3Q 4Q

Net Sales Breakdown by Channel

* At constant exchange rates

1Q 2Q 3Q 4Q

Mono-brand Stores Network

	DOS
	FY17	FY16
Europe	44	45
America	3	3
Asia	16	16
Total	63	64

Franchising

	FY17	FY16
Europe	49	50
America	1	2
Asia	135	139
Total	185	191

Income Statement – FY 2017/2016

(€m)

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

Summary Balance Sheet

×

(€m)		FY 17	FY 16
	Net Working Capital	81,3	73,1
	Net Tangible Assets	59,1	61,4
	Net Intangible Assets	109,7	115,1
	Net Financial Assets	3,7	4,1
	Severance Staff, Provisions & Others	(24,8)	(26,1)
	Net Capital Employed	229,0	227,6
	Group Shareholders' Equity	146,1	135,8
	Minorities	32,3	32,3
	Shareholders' Equity & Minorities	178,4	168,1
	Net Debt	45,1	54,0
	Shares Buyback	5,5	5,5
	Net Financial Debt and Shareholders' Equity	229,0	227,6
	Accounts Receivables	42,1	40,7
	Accounts Payables	(68,6)	(61,9)
	Inventory	97,8	89,4
	Operating NWC	71,3	68,2
	As % of sales	22,8%	24,3%
	Other Current Assets/Liabilities	10,0	4,8
	Net Working Capital	81,3	73,1

Summary Cash Flow

(€m)

	FY 17	FY 16
PBT	18,9	8,3
Operating Cash Flow	17,2	10,7
Capital Expenditure	(3,8)	(2,3)
Free Cash Flow	13,4	8,4
Cash Flows from Financing Activities	(5,1)	(3,9)
Cash and cash equivalents at the beginning of the year	14,5	10,0
Cash Flow of the Period	8,3	4,5
Cash and cash equivalents at the end of the year	22,8	14,5

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.