EPH SpA — Investor Presentation 2018

May 9, 2018

Q1 2018 RESULTS

9TH MAY 2018

FINANCIAL CALENDAR

Q1 17 Results	9th May 2018
H1 18 Results	2nd August 2018
9M 18 Results	8th November 2018

ePRICE AT A GLANCE

"Serving the evolution of Italian households"

A unique online offer to cover customer needs… …powered by a complete e-Commerce platform

up to c. 10 €MN in FY18, back-end loaded

ePRICE Q1: WORK IN PROGRESS

• Tough comparison vs. Q1 17: Q1 18 revenues impacted by a «rebase» effect due to the shift of non core categories from direct 1P towards the marketplace (where only commissions are booked) and IFRS 15 adoption for warranties.
• Gross Margin better than target, Gross Profit in line.
• Headcount Optimisation Completed.
• Savings in G&A and Marketing on track.
• Damaged Goods -20%, still unsatisfactory.
• Inventory reduction better than target. Capex reduction on track.
• Current trading positive: strong double digit on MDA and Marketplace.

2018-2023 ePRICE GUIDELINES: CONFIRMING A CONSERVATIVE MARKET PROJECTION

OUR PLAN: ePRICE SALES STRATEGY

Q1 18 GMV & REVENUES (1) (2)

(1) Gross Merchandise Volume includes revenues from products, shipping and 3P marketplace sales, net of returns and VAT included. (2) Revenue from services includes deliveries, warranties, B2B, ADV&Infocommerce and other revenues. GMV from services does not include B2B, ADV&Infocommerce;. Services&other have been restated and now include warranties.

Q1 18: CUSTOMER KPIS

8

(1) TTM= Trailing Twelve Months. 3P Marketplace Included.

(2) Spending per Buyer is calculated on revenue from products, deliveries and revenue from 3P marketplace, net of returns and VAT included

ePRICE GROSS MARGIN Q1 18 VS. Q1 17

Q1 18 Gross Margin vs. Q1 17 Gross Margin (% of revenues)

• GM improvement mostly thanks to margin on goods, linked to sales mix, infocommerce revenues linked to co-marketing with vendors and increased marketplace contribution due to the new strategy on long tail products
• Impact of damaged products needs to be improved (work in progress)

Q1 18 CONSOLIDATED P&L €MN

Q1 2018	Q1 2017	Q1 YOY
39.0	45.4	-14.1%
		-14.4%
6.3	7.2	-12.4%
16.2%	15.9%
-2.8	-2.6	7.1%
-4.7	-4.8	-2.3%
-0.4	-0.2	63.7%
-1.8	-1.9	-6.9%
-3.4	-2.4	40.5%
-8.8%	-5.4%
		-77.1%
		23.6%
		27.4%
-14.0%	-9.5%
		25.1%
-14.4%	-9.9%
		27.5%
	-8.3%
	ACT -32.7 -0.1 -3.5 -9.0% -5.5 -5.6 0.8 -4.8 -12.4%	ACT -38.2 -0.4 -2.8 -6.3% -4.3 -4.5 0.7 -3.8

Comments

Gross Margin

GM up by 30 bps vs. Q1 17 mainly due to improvement on margin on goods, marketplace contribution and info-commerce revenues (see chart GM waterfall)

S&M

S&M totally increased 7% YoY mainly due to cost accounted for TV & Radio campaigns (started February 2018) related to the new focus on strengthening our brand positioning on MDAs

IT - G&A

IT costs increased 64% vs Q1 17 mainly due to SAP Platform maintenance, but down 9% vs. Q4 17 G&A costs decreased 7% YoY as planned

EBIT

EBIT impacted by Y/Y 35% depreciation increase due to SAP and fulfilment center Investments

EBT from discontinued activities

€ 0.8MN including earn-out from Banzai Media Disposal (not cashed yet)

Q1 18 NFP EVOLUTION VS. PREVIOUS YEAR

€MN Q1 18 CASH FLOW

Cash flow Q1 2018 ACT Q1 2017 Net result -5.6 -4.5 25% D&A 2.0 1.5 31% Other non cash items 0.2 0.4 -43% Change in WC -8.6 -8.9 -3% Cash flow from operations -12.0 -11.5 5% Cash flow operting from discontinued activities 0.0 0.0 Net capex -1.1 -3.5 -68% Acquisition -0.2 -0.3 -42% Cash flow from investing activities -1.3 -3.8 -66% Cash flow investing from discontinued activities 0.0 0.0 Change in net equity 0 0.1 Treasury stock 0.0 -0.2 Change in financial credit (credit card) 0.9 0.9 Change in bank debt 4.5 4.2 -206% Cash flow from financing activities 5.3 5.0 7% CASH FLOW -8.0 -10.3 -23% Cash position at the beginning of quarter 21.1 54.7 Cash position at the end of quarter 13.1 44.4

Comments Cash flow absorbing €8MN in Q1 18 vs. €10.3MN in Q1 17 €2.3MN improvement mainly due to reduction in Net Capital Expenditures. Negative Change in WC due to seasonality, slightly better vs. last year. Change in bank debt related to new short term bank loan provided in February 2018

CONFIRMED GUIDELINES FOR 2018-2023

More conservative 2018-2023 market estimates after a disappointing year.

Efficiency plan with a leaner organization, worth up to 15-20% of cash costs savings and margin improvement in 2018 (up to 10 €MN), back-end loaded.

Core Categories: confirmed leadership and focus on "Family Capex" (MDA, A/C, TV) and related services (warranties, delivery and installation, smart home).

Long tail/non service driven categories: accelerating shift to Marketplace to effectively cover demand and improve profitability (up to 50% penetration).

EBITDA and CF positive in 2019, including potential earn-outs and disposals.

NFP positive throughout the plan. Up to 18 €MN from earn-outs and disposals.

BACKUP

€ MN BALANCE SHEET

Balance Sheet	31/12/17	31/03/18
Property, plant and equipment	7.8	7.5
Goodwill	14.3	14.3
Intangible assets	14.3	13.7
Financial assets	4.9	4.9
TOTAL ASSETS	41.3	40.4
NWC	(5.5)	3.9
Deferred tax assets	8.7	8.7
Provisions	(2.0)	(2.0)
Other non current debts	(0.4)	(0.4)
Net Invested Capital	42.1	50.6
Net Equity	63.4	58.7
Net Financial Position	(21.3)	(8.0)
Total Sources	42.1	50.6

NET WORKING CAPITAL € MN

Net Working Capital	31/03/17	31/12/17	31/03/18
Inventories	21.6	20.3	15.3
Trade receivables	8.2	8.9	8.5
Trade Payables	(25.4)	(37.7)	(23.0)
Other receivables and payables	0.6	3.1	3.1
NET WORKING CAPITAL	5.0	(5.4)	3.9
DOI	51	47	43
DSO (commerce)	13	12	18
DPO (commerce)	29	57	42