1 st Quarter 2015 Results

May 12th, 2015

1 st Quarter 2015 - Highlights

Results represent a further step along the path of gracious growth and long term sustainability, on the basis of the solid principles representing Company's DNA:

Top quality raw materials
Creativity
Excellence in Italian Craftsmanship
Exclusive presence in the main street and the most prestigious Luxury Dept. Stores
Net Revenues (€111.7mln) +12.1%*
EBITDA (€19.2mln ) +9.5%**
Net Profit (€9.3mln) +3.3%**

* Performance at current exchange rates

** Compared with 1Q 14 EBITDA Adjusted

Investment Plan: €13.6mln in 1st Quarter 2015 (€40.2mln in the last 12 months)
Net Debt at €68.2mln (€28.3mln as of 03/31/14)
Positive results both in International markets, with a rise of 15.2% (79.1% of total sales), and on the Italian Market (+1.7%)
All distribution channels posted growth: Retail Monobrand up 33.1%, Wholesale Monobrand up 1.3%, Wholesale Multibrand up 1.8%)

SS 15 – Women's Collection

Boutiques Network Highlights

Selected Distribution: 110 Monobrand Stores (98 Monobrand Stores as of 03/31/14)

75 DOS network

(vs. 63 boutiques as of March '14)

+9 net openings over the last 12 months (of which 3 net openings at the end of March 15)

+3 conversions from wholesale Monobrand Network

35 Wholesale Monobrand

(vs. 35 boutiques as of March '14)

+3 net openings over the last 12 months

-3 conversions to DOS

DOS openings since April 1 st 2015: Montecarlo and Ala Moana (Hawaii) Wholesale Monobrand openings since April 1st 2015 Sofia SS 15 Collection

Revenues by Region

		1Q 14	1Q 15	YoY % Chg
Net	Revenues	99.6	111.7	+12.1%
		Constant exchange rates		+8.6%
International Markets		76.7	88.3	+15.2%
	North America	25.8	34.5	+34.0%
	Rest of Europe	33.4	35.2	+5.5%
	Greater China	6.3	6.9	+10.2%
	RoW	11.3	11.7	+3.8%
Italy		23.0	23.4	+1.7%

International Markets revenues

Breakdown by countries

Highlights by Region

North America

Significant growth in all distribution channels
Retail channel benefited from increasing LFL performance and contribution made by selected openings (Atlanta and S. Francisco, in sept. '14, and NY Soho in march '15)
Growth in multibrand channel driven by increase in the sell-out and new spaces dedicated to the brand

Rest of Europe

Positive results driven by performance in existing network and supported by stable trend of the top-end foreign tourists at the leading cities and in the most exclusive resort
Russia confirms solidity of the business and domestic demand for exclusive luxury; resilient results in 1 st quarter sell-out and positive FW15 selling campaign

Greater China

Results driven by performance in existing spaces
Selective approach, with an exclusive presence in Mainland China
Top-end tourist flow not affected by volatility in currency and macroeconomics trend
Pricing architecture well balanced between all different geographical areas

Rest of the World

1 st quarter results affected by business conversion in Japan from 1 st Sept. 2014 (deliveries that contribute 1Q 14 revenues will support performance in 1 st and 2 nd quarter 2015)
Monobrand network includes 12 boutiques as of March 31st 2015 (9 boutiques as of March 31st 2014) SS 15 Collection

Italy

Significant growth performance, showing soundness of Italian Market
Sustainable growth both in direct and whls. monobrand channel thanks to steady flow of tourists to the main cities and resort areas
Reference point of the presence of the brand for global luxury consumer

Revenues by Distribution Channel

Monobrand Channel

Monobrand Channel – Top Line growth drivers

Positive LFL performance* (+4.8% in the first 18 weeks of 2015)
Selected boutique openings (12 monobrand boutiques in the last 12 months)
Positive impact from 13 hard-shop Luxury Dept. Store conversions in Japan since September 1 st
Monobrand network with 110 boutiques as of March '15 (98 boutiques as of March '14)

Monobrand Network: 110 boutiques (as of 03/31/2015)

DOS Network

75 Boutiques as of March '15 (63 as of March '14); 9 net openings (3 openings in March '15) and 3 conversions from wholesale monobrand

Wholesale Monobrand

35 Boutiques as of March '15 (35 as of March '14); 3 net openings and 3 conversions into DOS

*Like-for-Like rate is calculated as the worldwide average of sales growth, at constant exchange rates, reported by DOS opened as of January 1st, 2014

Selected Monobrand Boutiques Openings

Some of selected monobrand boutiques openings in the last 12 months (April '14 – March '15)

San Francisco – DOS opening in Sept. '14 New York Soho – DOS opening in March '15 Singapore – monobr. whl. opening in Jan. '15

Paris Rue Francois 1er – DOS opening in March '15

Montecarlo – DOS opening in April '15

Boutiques Network (from 03/31/14 to 03/31/15)

Monobrand Boutiques Network as of 03/31/15

Multibrand Channel

Positive sell-out results relating Spring/Summer 15 collections, both in the most exclusive spaces of Luxury Department Stores and in the prestigious multibrand boutiques
Positive trend showed by Fall/Winter 15 orders collected, very greatly appreciated by clients and observers
Luxury Dpt Stores progressively increasing their request for the most luxurious items, dedicating more spaces to absolute luxury brands to satisfy the needs of sophisticated topend customers, seeking "exclusive and unique" products

Income Statement

	1Q 2014	1Q 2015	% Chg	1Q 14 adj.*	1Q 15	% Chg
Net Revenues	99.6	111.7	+ 12.1%	99.6	111.7	+ 12.1%
Other operating income	1.2	0.2	- 83.7%	0.4	0.2	- 53.0%
Revenues	100.8	111.9	+ 11.0%	100.0	111.9	+ 11.8%
First Margin	56.7	67.0	+ 18.0%	56.0	67.0	+ 19.6%
%	56.3%	59.8%	+ 350 b.p.	56.0%	59.8%	+ 380 b.p.
SG&A	-38.5	-47.8	+ 24.2%	-38.5	-47.8	+ 24.2%
%	38.2%	42.7%	+ 450 b.p.	38.5%	42.7%	+ 420 b.p.
EBITDA	18.3	19.2	+ 5.0%	17.5	19.2	+ 9.5%
%	18.1%	17.1%	- 100 b.p.	17.5%	17.1%	- 40 b.p.
D&A	-3.1	-4.2	+ 36.5%	-3.1	-4.2	+ 36.5%
%	3.0%	3.8%	+ 70 b.p.	3.1%	3.8%	+ 70 b.p.
EBIT	15.2	15.0	- 1.4%	14.4	15.0	+ 3.8%
%	15.1%	13.4%	- 170 b.p.	14.4%	13.4%	- 100 b.p.
Income before taxation	14.5	13.7	- 5.0%	13.7	13.7	+ 0.2%
Net Income	9.6	9.3	- 2.3%	9.1	9.3	+ 3.4%
%	9.5%	8.4%	- 110 b.p.	9.0%	8.4%	- 70 b.p.

1Q 2014	1Q 2015	% Chg	1Q 14 adj.*	1Q 15	% Chg

* 1Q 14 Adjusted calculated excluding a capital gain of €0,76mln related to the sale of non-strategic industrial building

-First Margin includes raw material consumptions, third party manufacturing and R&D costs Group's quarterly results are impacted by seasonal effects, typical of our industry, and therefore cannot be projected as full year trend

EBITDA & Key Income Statement Analysis

EBITDA Adjusted Analysis

Increase in First Margin driven by channel mix, with retail sales moving up from 33% to 39% on total revenues, and could be affected by quarterly dynamics, not representative of FY trend

Increase in operating costs it's structural to the growth of business, network development, business conversion in Japan and renewal of some expiring leasing contracts

Personnel & Rent Costs

Personnel cost

from 15.1% to 16.4% (+130 bp)

Rent cost

from 6.2% to 9.3% (+310 bp)

Network Development

New boutiques openings (+9); conversions of some boutiques (3) and hard shop (13)

Business conversion in Japan and new showrooms: BC Japan establishment, opening of the new showrooms in Tokyo

Renewal of some expiring lease contracts in the last 12 months, some increasing selling spaces for selected boutiques and relocation

Average FTE - Workforce Analysis

DOS Network – from 03/31/14 to 03/31/15

Other Operating Costs

Other Operating Costs: decreasing % on sales (-20 basis points, from 17.2% to 17.0% )

Net Working Capital

		1Q 14	1Q 15	delta	FY 14	€ mln
Net Working Capital		89.4	114.2	24.8	97.5
- Trade Receivables		59.8	64.2	4.4	45.1
- Inventories		91.5	127.6	36.1	125.1
- Trade Payables		-56.6	-57.3	-0.7	-62.2
- Other Credits/(Debts)		-5.4	-20.4	-15.1	-10.5
Inventories	Development of Retail Network	Japan Business Conversion		Trade Receivables & Payables		Other Debts
Structural increase in inventories (+36.1€ mln), due to:	DOS Network increase from 63 to	Conversion monobrand and multibrand	from whl. channel to	Trend commercial development,	related to business with	Increase* in "Other Debts" related to the fair value of the currency forwards derivatives, underwritten
- Development - of Retail Network	75 boutiques - 9 net openings - 3 conversions	Retail mgmt. (since 1 2014),	st September including	Trade affected timing	Receivables by cash between	as per the Company standard practice at the time price lists are defined and with the only purpose
- Japan Business -Conversion	in Japan	13 hard-shops Department	in Luxury Stores	different	quarters	to hedge the non-euro commercial fx exposure.

* Move to slide 21 for some more comments

Capex Analysis

CAPEX invested in the quarter

Capex invested in the last 12 months

Multiyear Capex Project (2013 -2015)

Analysis of Net Financial Position

Net Financial Position Evolution

Net Financial Position increase from 28.3€ mln to 68.2€ mln, driven by:

NWC Increase

driven by structural increase in inventories, relating

- Development of Network
- Japan Business Conversion

Investment Project

On-going capex project, supporting

opening of monobrand boutiques and selective
commercial presence in the market
IT Platform development

Annex

Detailed Income Statement

€ mln	1Q 2014	1Q 2015
Net Revenues	99.6	111.7
Other operating income	1.2	0.2
Revenues	100.8	111.9
Consumption Costs	(23.2)	(23.5)
Raw Material Cost	(19.6)	(20.5)
Inventories Change	(3.6)	(3.1)
Outsourced Manufacturing	(20.8)	(21.4)
First Margin	56.7	67.0
Services Costs (excl. Out. Manuf.)	(22.9)	(28.6)
Personnel costs	(15.1)	(18.3)
Other operating costs	(0.6)	(1.0)
Increase in tangible assets	0.3	0.3
Bad Debt and other provisions	(0.3)	(0.1)
EBITDA	18.3	19.2
D&A	(3.1)	(4.2)
EBIT	15.2	15.0
Financial expenses	(1.8)	(8.8)
Financial income	1.1	7.6
EBT	14.5	13.7
Income taxes	(4.9)	(4.4)
Tax rate	33.8%	31.9%
Net Income	9.6	9.3
Minority Interest	(0.2)	(0.5)
Group Net Profit	9.7	9.9

€ mln	1Q 2014	1Q 2015
EBITDA Adj.	17.5	19.2
EBIT Adj.	14.4	15.0
Net Income Adj.	9.1	9.3

Detailed Balance Sheet & Cash Flow Statement

€ mln	1Q 2014	1Q 2015
Trade receivables	59.8	64.2
Inventories	91.5	127.6
Trade payables (-)	(56.6)	(57.3)
Other current assets/(liabilities)	(5.4)	(20.4) *
Net Working Capital	89.4	114.2
Intangible assets	30.3	32.8
Tangible assets	63.4	88.5
Financial assets	4.0	5.9
Total Assets	97.7	127.1
Other assets/(liabilities)	(0.9)	2.3
Net Invested Capital	186.1	243.5

Cash & Cash equivalents (-)	(42.5)	(52.1)
Short term Debt	48.9	64.6
Long term Debt	21.9	55.7
Net Financial Position	28.3	68.2
Shareholders Capital	13.6	13.6
Share-premium Reserve	57.9	57.9
Reserves	69.9	86.5
Group Net Profit	9.7	9.9
Group Equity	151.2	167.8
Minority shareholders	6.7	7.5
Total Equity	157.8	175.3
Total Funds	186.1	243.5

€ mln	1Q 2014	1Q 2015
Net Income	9.6	9.3
D&A	3.1	4.2
Ch. In NWC and other	(19.8)	(25.5)
Cash flow from operations	(7.2)	(11.9)

Tangible and intangible investments	(8.2)	(12.7)
Other (investments)/divestments	0.4	(0.6)
Cash flow from investments	(7.8)	(13.3)

Dividends	0.0	0.0
Share capital and reserves increase	3.3	0.0
Net change in financial debt	15.5	22.0
Total Cash Flow	3.9	(3.2)

* The change in "Other net liabilities" arises from the reporting at fair value of derivatives hedging the currency risk on trading transactions in foreign currency. In this respect, it is recalled that these derivatives are accounted for as cash flow hedges, meaning that their fair value is recognized as an asset or a liability in the balance sheet (current assets – derivative financial instruments or current liabilities – derivative financial instruments) with a counter-entry made to an equity reserve for the component that is considered to be an effective hedge of the change in fair value of the derivative instruments, subsequently reclassified to profit or loss as revenues in the period when the hedged transactions affect profit or loss.

Investor Relations

Shareholdings		Board of Directors
Fedone s.r.l.	57.0%	Brunello Cucinelli	Chairman and C.E.O
Ermenegildo Zegna Holding s.p.a.	3.0%	Moreno Ciarapica	Director and C.F.O.
Fundita s.r.l.	2.0%	Giovanna Manfredi	Director
FMR LLC	5.8%	Riccardo Stefanelli	Director
Capital Research & Mgmt. Company	2.1%	Camilla Cucinelli	Director
Other	30.1%	Giuseppe Labianca	Director
		Candice Koo	Indipendent Director

Total n°of shares: 68,000,000

Brunello Cucinelli
Moreno Ciarapica
Giovanna Manfredi
Riccardo Stefanelli
Camilla Cucinelli
Giuseppe Labianca
Candice Koo
Andrea Pontremoli
Matteo Marzotto

Director and C.F.O. Director Director Director Director Indipendent Director Lead Indipendent Director Indipendent Director

Head of Investor Relations

Pietro Arnaboldi Mail: [email protected] Tel. +39 075 6970079

Brunello Cucinelli S.p.A. Via dell'Industria, 5 Solomeo (PG) Italia

This presentation contains forward looking statements which reflect Management's current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro.