Aeffe — Investor Presentation 2020

May 13, 2020

AEFFE First Quarter 2020 Consolidated Financial Results Presentation 13th May 2020

1Q 2020 Key Facts

Consolidated Revenues at € 76.2m (-25.4% at current exchange rates);

Consolidated EBITDA for € 8.6m (11.3% of sales), compared to an EBITDA of € 26.6m (26.0% of sales) in 1Q 2019, with a € 18m decrease 220 Mono Brand Stores

Net Profit for the Group at 4 thousands of Euro, compared to a Net Profit of 11.840 thousands of Euro in 1Q 2019, with a 11.8 thousands of Euro decrease

Consolidated Financial Debt net of IFRS 16 effect of € 57.6m, compared to € 34.5m as of 31 March 2019, with a € 23.1m increase (€ 39.4m as of 31 December 2019)

Net Sales Breakdown by Division(1)

Net Sales Breakdown by Brand

Net Sales Breakdown by Region

* At constant exchange rates

Net Sales Breakdown by Channel

Mono-brand Stores Network

	Mono-brand Stores Network
	DOS
	1Q20	FY19
Europe	42	42
America	2	3
Asia	16	16
Total	60	61

Franchising

1Q20	FY19

Income Statement – 1Q 2020/2019

	1Q 20	1Q 19
Net Sales	76,2	102,2
% change	(25,4%)
Other Revenues	2,7	2,8
Total Revenues	78,9	105,0
% change	(24,8%)
Raw Materials Costs	(23,4)	(30,1)
Service Costs	(26,3)	(27,7)
Costs for use of third parties	(1,8)	(2,0)
Personnel	(17,3)	(17,8)
Other Operating Expenses	(1,5)	(0,8)
Total Operating Expenses	(70,3)	(78,4)
EBITDA	8,6	26,6
Margin (% of Net sales)	11,3%	26,0%
Depreciation and Amortisation	(6,8)	(6,7)
EBIT	1,8	19,9
Margin (% of Net sales)	2,3%	19,5%
Net Financial Income / (Expenses)	(0,8)	(0,8)
Profit before taxes	1,0	19,1
Margin (% of Net sales)	1,3%	18,7%
Taxes	(1,4)	(6,2)
Net income/(loss) before Minorities	(0,5)	12,9
Margin (% of Net sales)	(0,6%)	12,6%
Minority Interests	0,5	(1,1)
Net Income/(Loss) for the Group Margin (% of Net sales)	0,0 0,0%	11,8 11,6%

Summary Balance Sheet

۰.

		1Q 20	FY 19	1Q 19
	Net Working Capital	125,7	107,2	104,0
(€m)	Net Tangible Assets	63,4	62,8	60,1
	Net Intangible Assets	75,1	76,1	78,7
	Net Intangible Assets for Rights of use	106,3	110,7	131,5
	Net Financial Assets	2,9	2,9	2,9
	Severance Staff, Provisions & Others	(20,3)	(20,3)	(22,1)
	Net Capital Employed	353,1	339,3	355,2
	Group Shareholders' Equity	171,3	171,4	172,8
	Minorities	32,2	32,7	33,3
	Shareholders' Equity & Minorities	203,5	204,1	206,1
	Net financial Debt	57,6	39,4	34,4
	Net financial debt for Lease liabilities	92,0	95,8	114,6
	Net Financial Debt and Shareholders' Equity	353,1	339,3	355,1
	Accounts Receivables	44,2	41,5	52,9
	Accounts Payables	(61,0)	(74,3)	(60,2)
	Inventory	114,6	112,1	101,5
	Operating NWC	97,8	79,3	94,2
	As % of LTM sales	30,1%	22,6%	26,6%
	Other Current Assets/Liabilities	27,9	27,9	9,8
	Net Working Capital	125,7	107,2	104,0

Summary Cash Flow

	1Q 20	1Q 19	1Q 19
PBT	1,0	21,8	19,1
Operating Cash Flow	(11,6)	19,2	2,5
Capital Expenditure	(1,9)	(9,7)	(1,3)
Capital Expenditure for Rights of use		(1,1)	(1,9)
Free Cash Flow	(13,5)	8,5	(0,7)
Cash Flows from Financing Activities	2,6	(8,1)	0,6
Cash and cash equivalents at the beginning of the year	28,4	28,0	28,0
Cash Flow of the Period	(10,9)	0,4	(0,1)
Cash and cash equivalents at the end of the year	17,5	28,4	27,9

Appendices

Income Statement – Full Year 2017-2019

(€m)

(€m)
	FY 19 net of IFRS 16 effects	2018A	2017A
Net Sales	351,4	346,6	312,6
% change	1,7%	10,9%	11,4%
Other Revenues	10,1	5,4	3,8
Total Revenues	361,5	352,0	316,4
% change	2,8%	11,2%	10,1%
Raw Materials Costs	(115,3)	(110,3)	(96,1)
Service Costs	(108,3)	(100,6)	(91,0)
Cost for use of third parties assets	(25,6)	(25,4)	(23,3)
Personnel	(72,4)	(68,5)	(65,3)
Other Operating Expenses	(3,3)	(3,9)	(4,1)
Total Operating Expenses	(324,9)	(308,7)	(279,8)
EBITDA	36,6	43,3	36,6
Margin (% of Net sales)	10,4%	12,5%	11,7%
Depreciation and Amortisation	(13,0)	(13,7)	(13,9)
EBIT	23,6	29,6	22,7
Margin (% of Net sales)	6,7%	8,5%	7,3%
Net Financial Income / (Expenses)	(1,0)	(0,9)	(3,7)
PBT	22,7	28,7	19,0
Margin (% of Net sales)	6,4%	8,3%	6,1%
Taxes	(10,0)	(11,6)	(7,4)
Net income before Minorities	12,6	17,1	11,5
Margin (% of Net sales)	3,6%	4,9%	3,7%
Minority Interests	(0,3)	(0,4)	(0,0)
Net Income for the Group	12,3	16,7	11,5
Margin (% of Net sales)	3,5%	4,8%	3,7%

Company Profile

N° of shares outstanding: 107,362,504

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

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 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.