Fila — Investor Presentation 2016

Nov 11, 2016

Informazione Regolamentata n. 1565-48-2016		Data/Ora Ricezione 11 Novembre 2016 17:44:19	MTA - Star
Societa'	:	FILA
Identificativo Informazione Regolamentata	:	81402
Nome utilizzatore	:	FILASPAN01 - De Rosa
Tipologia	:	AVVI 16
Data/Ora Ricezione	:	11 Novembre 2016 17:44:19
Data/Ora Inizio Diffusione presunta	:	11 Novembre 2016 17:59:20
Oggetto	:		FILA SpA 9M 2016 Results Presentation
Testo del comunicato

Vedi allegato.

Disclaimer

This document has been prepared by F.I.L.A. S.p.A. ("F.I.L.A." or the "Company"), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of F.I.L.A..

Statements contained in this presentation, particularly regarding any possible or assumed future performance of the FILA Group, are or may be forward-looking statements based on FILA's current expectations and projections about future events.

Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of FILA to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements. Consequently, FILA and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments.

The data and information contained in this document are subject to variations and integrations. Although FILA reserves the right to make such variations and integrations when it deems necessary or appropriate, FILA assumes no affirmative disclosure obligation to make such variations and integration, except to the extent required by law.

Any reference to past performance of the FILA Group shall not be taken as an indication of future performance.

In addition, this presentation includes certain ''Adjusted'' financial and operating indicators and other measures, which have been adjusted to reflect extraordinary events, non-recurring transactions and activities which are not directly related to the Group's ordinary business. Such "Adjusted" information has been included to allow a better comparison of financial information across the periods; however, it should be noted that such information are not recognized as measures of financial performance or liquidity under IFRS and/or do not constitute an indication of the historical performance of the Company or the Group. Therefore, investors should not place undue reliance on such data and information.

This document does not constitute or form part of any offer or invitation to purchase or subscribe any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

By attending this presentation, you agree to be bound by the foregoing terms.

FILA closes 9M ²⁰¹⁶ with ^a increase of sales in all the reference markets, primarily Centre & SouthAmerica, in particular Mexico, Europe and North America.

•Core Business Sales at 309,3mln €, +42,0% (organic growth, +8,2%)

• •increasing demand from Education and Art & Craft channels
• •Significant growth of the Other Creativity Instruments product line of +13,7%
• •Double digit growth confirmed in Indian market
• • Positive contribution of M&A of 82,7mln €
• •FX negative contribution of 9,0mln €
• •Market share consolidation in all the reference areas and market share increase in the emerging markets

• Adjusted EBITDA at 55,2mln €, +34,8%, with an organic growth of 12,0% registering an increase more than proportional tha nthe Sales organic growth.

•Adjusted Net Profit +32,0%

• Net financial position at 175,8mln € at the end of September 2016, mainly affected by M&A effect related to Daler & Rowney Group (104,2mln €), fully consolidated from the beginning of February ²⁰¹⁶ and to St. Cuthberts acquisition in mid September ²⁰¹⁶ (6,5mln €).

• Completed at the beginning of October the acquisition of the Canson Group - the global leader of the high added value paper market for Fine Arts, schools and leisure. The EV (Enterprise Value) for acquisition of the Canson Group is Euro ⁸⁵ million. Anadditional disbursement up to Euro ¹⁵ million may be due to the vendor where the ²⁰¹⁷ EBITDA and ²⁰¹⁸ EBITDA of the F.I.L.A. Group reaches certain thresholds.

9M 2016 Core Business Sales

SALES BREAKDOWN BY PRODUCT LINE

• Core Business Sales +42% (+91,5mln €). Organic growth, +17,9mln € (+8,2 %), net of M&A and FX effect, of which:

•By Geographic Area: mainly Centre-South America, +6,6mln € (+16,5%), Europe +6,4mln € (+6,4%) and North America +4mln €(+5,3%)

•By Product line: Other Creativity Instruments +10,4mln € (+13,7%), Pencils +5,2mln € (+4,8%), Office and Industrial Products of ⁺ 2,3mln € (+6,9%)

•M&A effect 82,7mln € (33,8mln € WFPL/Pioneer, 48,3mln € D&RGroup and 0,6mln € St Cuthberts Mill)

SALES BREAKDOWN BY GEOGRAPHICAL AREA

9M 2016 EBITDA

ADJUSTED EBITDA – 9M 2016

• • Adjusted EBITDA ⁺ 14,2mln € (+34,8 %), Organic Growth ⁺ 4,9mln€ (+12%), net of M&A and main FX effect, more than proportional than the Organic Turnover Growth
• • 6,2mln € of extraordinary costs in FY2016, mainly related to the M&A activities
• • 3,0mln € of extraordinary costs in 9M2015, mainly related to the Space S.p.A merger and listing expenses.
• • M&A effect of 10mln € (5mln € WFPL/Pioneer, 4,8mln € D&RGroup and 0,2mln € St Cuthberts Mill)

ADJUSTED EBITDA BREAKDOWN BY GEOGRAPHICAL AREA

9M 2016 NET INCOME AND NET DEBT

(€ million)

ADJUSTED NET INCOME – 9M 2016

(€ million) NET DEBT – FY 2015 and 9M 2016

• • The normalization of the Group Result in 9M ²⁰¹⁶ refers mainly to extraordinary operating costs, net of taxes effects
• • Normalization made in 9M ²⁰¹⁵ at the Group Result level refers to the non-recurring financial cashless charges relatedto the accounting of the fair value of Space S.p.A. equity at May 31st ²⁰¹⁵ (45,8 mln €) and to the option stipulated by the parent company for the forward purchase of Indianrupees related to the WFPL deal (0,4 mln €) and to the extraordinary operating costs, net of taxes effects.

Net debt Increase of 137,1mln € mainly due to:

• • 110,9mln€ of M&A effect, mainly referred to shares acquisition(16,9mln € for Daler & Rowney Group and 6,5mln € for St Cuthberts Paper Mill €) and Daler & Rowney Group Net Debt contribution (87,3mln €)
• •Operating CF before TWC adjustment equal to ⁺ 41mln €
• • Trade working capital cash absorption of 53,8mln €, due tobusiness seasonality
• • Capex for 7,3mln € due to new investment in tangible andintangible assets
• •Interest paid for 3,9mln €
• •Dividend paid for 4,3mln €

•FX effect +3mln €

9M 2016 Income Statement

( illi ) € m on	9M 20 15 A	les % Sa on	9M 20 16 A	les % Sa on
PR OF IT & LO SS
Co Bu sin Sa les re ess	21 7, 8		30 9, 3
he Ot r r ev en ue s	5, 5		7, 0
To l re ta ve nu es	22 3, 3		31 6, 3	-
st f ial nd lie ( de e) Co Ra Ma Su Inc inv ter et tor or w s a pp s n rea se cre as en y	( 0) 89 ,	( ) 40 8% ,	( 9) 13 1,	( ) 42 6% ,
Co fo r S ice nd of Th ird rti sts U As ts erv s a se pa es se	( 3) 50 ,	( ) 23 1% ,	( 0) 73 ,	( ) 23 6% ,
el Pe Co sts rso nn	( 3) 40 ,	( ) 18 5% ,	( 8) 54 ,	( ) 17 7% ,
Ot he r O tin Co sts pe ra g	( 8) 5,	( ) 2, 7%	( 6) 7,	( ) 2, 5%
l o ing To ta rat sts pe co	( 3) 18 5,	( ) 85 1% ,	( 3) 26 7,	( ) 86 4% ,
EB ITD A	37 9 ,	17 4% ,	49 0 ,	15 8% ,
d A De eci ion rtiz ati at pr an mo on	( 1) 5,	( ) 2, 3%	( 0) 10 ,	( ) 3, 2%
rit W e-D ow ns	( 0, 8)	( 4% ) 0,	( 0, 2)	( 1% ) 0,
EB IT	32 1 ,	14 7% ,	38 8 ,	12 5% ,
/e Fin cia l i an nc om e xp en se s	( 7) 50 ,	( ) 23 3% ,	( 7) 3,	( ) 1, 2%
/e s f eth od Inc cia uit tes at om e xp en se ro m as so eq y m	0, 5	0, 2%	-	0, 0%
PB T	( 18 2) ,	( 8, 4% )	35 1 ,	3% 11 ,
Ta xe s	( 2) 10 ,	( ) 4, 7%	( 3) 11 ,	( ) 3, 7%
fit ( los s) of inu ing ing tiv itie Ne t p nt at ro co op er ac s	( 4) 28 ,	( 0% ) 13 ,	23 8 ,	7% 7,
fit ( los s) of dis ed Ne nti tin cti vit ies t p ro co nu o pe ra g a	0, 5	0, 2%	-	0, 0%
( s) l n fit los of th iod To ta et p ro e p er	( 9) 27 ,	( ) 12 8% ,	23 8 ,	7% 7,
l n of it ( los s) rib ble lli To in ta et att uta to tro ter ts pr no n c on ng es	0, 4	0, 2%	1, 0	0, 3%
Fil 's t al fit ( los s) of th iod a G ot t p ro up ne ro e p er	( 2) 28 ,	( 0% ) 13 ,	22 7 ,	4% 7,
( illi ) € m on	9M 20 15 A	les % Sa on	9M 20 16 A	les % Sa on
P& L AD JU ST M EN TS
RE PO RT ED EB ITD A	37 9 ,	17 4% ,	49 0 ,	15 8% ,
l A dju To ta stm ts en	3, 0		6, 2
AD JU ST ED EB ITD A	40 9 ,	8% 18 ,	55 2 ,	8% 17 ,
RE PO RT ED N ET PR OF IT	( 2) 28	( ) 13 0%	22 7	7, 4%
To l A dju ta stm ts en	, 48 9	,	, 4,
AD JU ST ED N ET PR OF IT	, 20 7	9, 5%	6 27	8, 8%
	,		3 ,

9M 2016 Balance Sheet

( l l ) € i io m n	2 0 1 5 A	9 M 2 0 1 6 A
B A L A N C E S H E E T
i b le In ta ts ng as se	8 8, 2	1 5 2, 9
b le Ta i As ts ng se	4 7, 9	6 1, 7
l d F in ia F ix As ts an c e se	1, 8	2, 2
d ixe F As ts se	3 8 1 7,	2 6, 8 1
/ he ia b i l i ie O No Cu As L t t ts t r n rr en se s	1 3, 9	1 5, 7
In to ve n ry	1 1 8, 5	1 5 2, 2
de b le d he b le iv O iv Tr Re t a ce a s a n r r ec e a s	7 7, 7	1 3 9 5,
de b le d he b le Tr O Pa t a p ay a s a n r a s y	( ) 5 3, 0	( ) 7 1, 1
de k in i l Tr W Ca ta a or g p	1 4 3, 2	2 1 7, 0
he d b l O Cu As L ia i i ie t t ts t r rr en se a n s	3, 2	( ) 0, 6
k in i l Ne W Ca t ta or g p	1 4 6, 4	2 1 6, 4
is io & ds Pr Fu ov ns n	( ) 2 6, 2	( ) 4 1, 4
/ d ia b i l i ie de d fo isp l Cu Cu As L In D t a t t ts t te rr en n no rr en se s n r os a	-	-
N E T C A P I T A L E M P L O Y E D	2 7 2, 0	4 0 7, 5
ha ho l de S i ty re rs eq u	( ) 2 1 1, 7	( ) 2 3 1, 7
l F in ia In tr ts an c s um en	( ) 2 1, 5	-
in ia l i io Ne F Po t t an c s n	( ) 3 8, 7	( ) 1 7 5, 8
T O T A L N E T S O U R C E S	( ) 2 7 2, 0	( ) 4 0 7, 5

9M 2016 Cash Flow Statement

) l l € i io m n	9 M 2 0 1 5 A	9 M 2 0 1 6 A
A S H F L O W
E B I T	3 2, 1	3 8, 8
d fo A j tm ts ta ts us en r n on m on e ry c os	5, 8	1 0, 2
fo d j A tm ts ta us en r xe s	( ) 0, 6 1	( ) 8, 0
h- f lo fr in iv i ie be fo ha in Ca N W C t t t s w om o p er a g ac s re c ng es	2 7, 3	4 0, 9
ha C in in ies to ng es ve n r	( ) 1 0, 8	( ) 1 5, 6
ha in de iva b les & he C tra t ng es re ce o rs	( ) 4 0, 5	( ) 4 6, 4
ha de b les he C in & tra t ng es p ay a o rs	( ) 4, 8	7, 2
/ ha in he l ia b i l i ies C t t a ts t ng es o r c ur re n ss e	( ) 0, 1	1, 0
ha in k in i l C t w ta ng es n e or g ca p	( ) 5 6, 2	( ) 5 3, 8
h- f lo O in t p er a g ca s w	( ) 2 8, 9	( ) 1 2, 9
b le d b le In in i in i tm ts ta ta ts ve s en ng an g as se	( ) 5, 7	( ) 7, 3
he O in t tm ts r ve s en	0, 3	( ) 2 3, 6
h- f lo fr Ca in tm ts s w om ve s en	( ) 5, 4	( ) 3 0, 8
/ l bu Ca i in im ta t p cr ea se re rs em en	( ) 0, 3	( ) 4, 3
in Ne t te ts re s	( ) 3, 0	( ) 3, 9
h- f lo fr f in in Ca s w om an c g	( ) 3, 3	( ) 8, 2
he ha O t r c ng es	( ) 0, 6	( ) 0, 9
f l c h- lo To ta as w	( ) 3 8, 2	( ) 2, 8 5
f fe f E F X t o te ts c ra m ov em en	1, 7	3, 0
f f in ia l p i io Co ie is i io Ne Ne Ac Da t t t t te an c os n o w m p an s a s a q u n	6 8 4,	( ) 8 2 7,
ha in in ia l i io C Ne F Po t t ng es an c s n	2 8, 3	( ) 1 3 7, 1

Quarterly CB Sales, EBITDA, TWC and NET DEBT

QUARTERLY CORE BUSINESS SALES AND ADJUSTED EBITDA

(€ million) QUARTERLY TWC AND NET DEBT

FILA Shareholders

Total shares 41.232.296, of which : Ordinary shares 34.665.788, Class B shares 6.566.508 (enjoy three votes each in accordance with Article 127sexies of Legislative Decree No. 58/1998).Last update September 9th 2016

Investor Relations F.I.L.A.Stefano De Rosa CFO/IR Officer – Francesca Cocco IRir@fila.it(+39) 02 38105206