Fila — Investor Presentation 2016

Mar 22, 2016

Informazione Regolamentata n. 1565-6-2016		Data/Ora Ricezione 22 Marzo 2016 17:52:14	MTA - Star
Societa'	:	FILA
Identificativo Informazione Regolamentata	:	71281
Nome utilizzatore	:	FILASPAN01 - De Rosa
Tipologia	:	IRAG 01
Data/Ora Ricezione	:	22 Marzo 2016 17:52:14
Data/Ora Inizio Diffusione presunta	:	22 Marzo 2016 18:07:15
Oggetto	:		FY 2015 RESULTS FILA PRESENTATION
Testo del comunicato

Vedi allegato.

FY 2015 Results

1

Disclaimer

This document has been prepared by F.I.L.A. S.p.A. ("F.I.L.A." or the "Company") 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.

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 FY 2015 Highlights

FILA continues to grow in FY 2015, registering a demand acceleration in all the reference markets, primarily North America, Centre & South America and Mediterranean Europe

• • Core Business Sales +17.9% (organic growth, +8.3%)
• •Strong results of the school campaign in North America
• •Market share growth in Italy in all the covered channels
• •Better Sales Mix in Mexico and increase of sales in Chile and Argentina

• Adjusted EBITDA +18.4%, with an organic growth of 15,4% registering an increase more than proportional than the Sales organic growth.

• Non-recurring cashless negative impact of 37,4mln Euro on financial charges in FY 2015 mainly related to the recognition of the fair value of Space S.p.A. Equity at May 31, 2015, Market Warrant evaluation, partially compensated by the revaluation effect on WFPL participation due to the step up acquisition process

•Adjusted Net Profit +23,0%

• Net financial position at 38.5mln Euro at the end of December 2015, mainly affected by the Working Capital increase to support future sales volumes and prompt delivery to customers and by the cash out to acquire WFPL majority stake

•Writefine Products Private Limited fully consolidated from the beginning of November 2015

FILA: FY 2015 Revenues

REPORTED CORE BUSINESS SALES – FY2015

(€ million)

42%31%20%3% 3% EuropeNorth AmericaCentral & SouthAmericaAsiaRoW

FY2015 SALES BREAKDOWN BY GEOGRAPHY

•Organic Growth + 8,3% (net of FX and M&A effect)

• • Increasing contribution from North America, Centre- South America and Eurozone, registering respectively +16%, +7% and +6% of Organic Growth
• • Growth in Pencils +27%, Other Creativity Instruments +6%, Industrial Products +6 % compared to FY2014 and net from M&A effected
• • WFPL (India), consolidated since November 2015, with third parts sales equal to 6,5mln € (37,7mln € on yearly basis)

FY2015 SALES BREAKDOWN BY PRODUCT LINE

4

FILA : FY 2015 EBITDA – Working on profitability

• • Organic Growth + 15,4% (net of M&A effect), more than proportional than Organic Turnover Growth
• • 5.8mln Euro of extraordinary costs in FY2015, mainly related to the Space S.p.A merger and listing expenses and M&A activities
• • 5.2mln Euro extraordinary costs in FY2014 ,mainly related to consultancy and due diligence for M&A activities

(€ million)

ADJUSTED NET INCOME – FY 2015

Adjusted Net profit +23% in FY2015 to 24.8mln Euro

•

• • Normalization made at the financial results management level refers mainly to the non-recurring financial items related to the accounting of the fair value of Space S.p.A. equity at May 31st 2015 (-45.8mln Euro), of Market Warrant (-5,2mln Euro) and WFPL participation revaluation for the step up acquisition (+13,9mln Euro) process, plus extraordinary operating costs, net of taxes effects
• • The normalization of the Group Result in FY2014 refers to the above normalization, net of taxes effects

FILA: Continuous cash generation

NORMALIZED NET DEBT – FY 2014 and FY 2015

• Operating CF before TWC adjustment equal to 26,2 mln Euro
• Trade working capital cash absorption of 24,7 mln Euro (17,8 mln € more than December 2014) related to:
• Increase in inventories functional to the sustaining of future sales volumes and to a timely fulfillment of customer orders
• Trade receivable increase related to core business sales increase
• Space non-recurring Trade Payable payment
• Investment in WFPL 36,1 mln Euro due to the stake increase ending up 51%
• Capex for 7,6 mln Euro due to new investment in tangible and intangible assets
• Interest paid for 3,8 mln Euro

* Net from 64,8 Net Debt Contribution from Space merger

*

QUARTERLY TWC AND NET DEBT

Appendix

FILA FY2015 Income Statement

( i l l ion ) € m	2 0 1 4 A	% les Sa on	2 0 1 5 A	% les Sa on
P R O F I T & L O S S
les Co Bu ine Sa re s ss	2 3 3, 6		2 7 5, 3
he Ot r r ev en ue s	3, 8		7, 2
l re To ta ve nu es	2 3 7, 4		2 8 2, 5	-
f ls d l ( de ) Co Ra M ia Su ies Inc inv st at t tor or w er an p p ne rea se cre as e en y	( ) 9 1, 0	( ) 3 8, 9 %	( ) 1 0 8, 4	( ) 3 9, 4 %
f ice d f h ir d p ies Co Se Us T As sts t ts or rv s a n e o ar se	( ) 5 7, 7	( % ) 2 4, 7	( ) 6 8, 5	( % ) 2 4, 9
l Pe Co sts rso nn e	( ) 4 8, 8	( ) 2 0, 9 %	( ) 5 5, 7	( ) 2 0, 2 %
he ing Ot Op Co t sts r era	( ) 4, 9	( ) % 2, 1	( ) 8, 2	( ) % 3, 0
l o To ing ta at sts p er co	( ) 2 0 2, 4	( ) 8 6, 6 %	( ) 2 4 0, 8	( ) 8 7, 4 %
E B I T D A	3 5, 0	1 5, 0 %	4 1, 8	1 5, 2 %
d De iat ion Am iza ion t t p rec an or	( ) 5, 7	( ) 2, 4 %	( ) 6, 8	( ) 2, 5 %
Wr ite -D ow ns	( ) 0, 3	( % ) 0, 1	( ) 1, 0	( % ) 0, 4
E B I T	2 9, 0	1 2, 4 %	3 4, 0	1 2, 3 %
/e l F ina ia inc nc om e xp en se s	( ) 4, 5	( % ) 1, 9	( ) 4 2, 6	( % ) 1 5, 5
/e fro ho d Inc iat ity at et om e xp en se s m as so c es eq u m	0, 4	0, 2 %	0, 4	0, 2 %
P B T	2 4, 9	% 1 0, 7	( ) 8, 2	( ) % 3, 0
Ta xe s	( ) 8, 2	( ) 3, 5 %	( ) 8, 3	( ) 3, 0 %
( ) f it los f c inu ing ing iv it ies Ne t p t at t ro s o on op er ac	1 6, 7	% 7, 1	( ) 1 6, 5	( ) % 6, 0
f ( los ) f d d o Ne it isc inu ing iv it ies t p t t t ro s o on e p era ac	( ) 0, 1	( ) 0, 0 %	0, 1	0, 0 %
( ) l n f it los f t he io d To ta et p ro s o p er	6, 6 1	% 7, 1	( ) 6, 1 4	( ) 6, 0 %
l n f ( los ) bu b le l l To it i ing int ta et att ta to tro sts p ro s r no n c on ere	0, 0	0, 0 %	0, 3	0, 1 %
i la 's t l n f it ( los ) f t he io d F Gr ot et ou p a p ro s o p er	1 6, 6	7, 1 %	( ) 1 6, 7	( ) 6, 1 %
( l l ) € m i ion	2 0 1 4 A	les % Sa on	2 0 1 5 A	les % Sa on
& P L A D J U S T M E N T S
R E P O R T E D E B I T D A	3 5, 0	1 5, 0 %	4 1, 8	1 5, 2 %
l d j To A ta tm ts us en	5, 2		5, 8
A D J U S T E D E B I T D A	4 0, 2	1 7, 2 %	4 7, 6	1 7, 3 %
R E P O R T E D N E T P R O F I T	1 6, 6	7, 1 %	( ) 1 6, 7	( ) 6, 1 %
l d j To A ta tm ts us en	3, 6		4 1, 5
A D J U S T E D N E T P R O F I T	2 0, 2	8, 6 %	2 4, 8	9, 0 %

8

FILA FY2015 Balance Sheet

( l l ) € i i m o n	2 0 1 4 A	2 0 1 5 A
B A L A N C E S H E E T
b l I i t t n a n g e a s s e s	2 1, 3	8 8, 2
i b l T A t a n g e s s e s	2 5, 6	4 7, 9
l d i i i F F A t n a n c a x e s s e s	7, 5	1, 8
i d F A t x e s s e s	5 4, 3	1 3 7, 8
/ h i b i l i i O N C A L t t t t e r o n u r r e n s s e s a e s	1 0, 4	1 3, 9
I t n v e n o r y	9 2, 0	1 1 8, 5
d b l d h b l i O i T R t r a e e c e v a e s a n e r r e c e v a e s	6, 1 7	7 7, 7
d b l d h b l T O P t r a e p a y a e s a n e r a y a e s	( ) 4 9, 1	( ) 5 3, 0
d k l i i T W C t r a e o r n g a p a	1 1 9, 0	1 4 3, 2
h d b l O C A L i i i i t t t t e r u r r e n s s e s a n a e s	( ) 1, 6	3, 2
k i i l N W C t t e o r n g a p a	1 1 7, 4	1 4 6, 4
d i i & P F r o s o n s n s v u	( ) 1 1, 7	( ) 2 6, 2
/ d b l d d f l C C i i i i i A L I D t t t t t t u r r e n a n n o u r r e n s s e s a e s n e n e o r s p o s a	0, 0	-
N E T C A P I T A L E M P L O Y E D	1 7 0, 4	2 7 2, 0
h h l d i S t a r e o e r s e q u y	( ) 1 1 2, 0	( ) 2 1 1, 7
i i l F I t t n a n c a n s r m e n s u	-	( ) 2 1, 5
l i i i i N F P t t e n a n c a o s o n	( ) 8, 5 4	( ) 3 8, 7
T O T A L N E T S O U R C E S	( ) 1 7 0, 4	( ) 2 7 2, 0

FILA FY 2015 Cash Flow Statement

l l ) € i i m o n	2 0 1 4 A	2 0 1 5 A
C A S H F L O W
E B I T	2 9, 0	3 4, 0
d f j A t t t t s m e n s o r n o n m o n e a r c o s s u y	6, 0	7, 7
d f A j t t t u s m e n s o r a x e s	( ) 8, 7	( ) 1 5, 5
h- f l f i i i i b f h i C N W C t t t a s o r o m o p e r a n g a c e s e o r e c a n g e s n w v	2 6, 3	2 6, 2
h C i i i t a n g e s n n v e n o r e s	( ) 1 1, 2	( ) 1 8, 5
h d b l & h C i i t t a n g e s n r a e r e c e v a e s o e r s	( ) 4, 5	( ) 2, 4
h d b l h i & C t t a n g e s n r a e p a a e s o e r s y	1 1, 3	( ) 4, 0
/ h h l b l C i i i i i t t t t a n g e s n o e r c u r r e n a s s e s a e s	( ) 2, 4	0, 2
h i k i i l C t t a n g e s n n e o r n g c a p a w	( ) 6, 9	( ) 2 4, 7
h- f l O i t p e r a n g c a s o w	1 9, 4	1, 5
b l d b l I i i i i t t t t t n v e s m e n s n a n g e a n n a g e a s s e s	( ) 6, 6	( ) 7, 6
h O i t t t e r n e s m e n s v	0, 0	( ) 3 6 5,
h- f l f i C t t a s o w r o m n v e s m e n s	( ) 6, 6	( ) 4 3, 3
/ l b C i i i t t a p a n c r e a s e r e m u r s e m e n	( ) 0, 9	( ) 0, 3
i N t t t e n e r e s s	( ) 3, 8	( ) 3, 8
h- f l f f i i C a s o w r o m n a n c n g	( ) 4, 7	( ) 4, 0
h h O t e r c a n g e s	( ) 0, 2	( ) 0, 2
l h- f l T t o a c a s o w	9 7,	( ) 4 6, 0
f f f E F X t t t e c o r a e m o v e m e n s	( ) 1, 9	1, 8
f l f i i i i S S. N M A. t t e n a n c a p o s o n o e r g e r p a c e p.		6 8 4,
f l f N i i i i N C i A i i i D t t t t t e n a n c a p o s o n o e w o m p a n e s a s a c q u s o n a e	( ) 2, 8	( ) 0, 9
h i i i l i i C N F P t t a n g e s n e n a n c a o s o n	3, 3	1 9, 7

FILA quarterly Core Business Sales and EBITDA

QUARTERLY CORE BUSINESS SALES AND REPORTED EBITDA

(1) Affected by extraordinary items

SummaryFinancials – Writefine Products Private Plc

• -In 2012, FILA invested in Writefine Products Private Plc (India) for a 18.5% stake
• -In October 2015, FILA increaseD by 32.5% hits stake in WFPL, reaching a 51% of the company
• -WFPL is fully consolidated from the beginning of November 2015
• -Indian market growth outpaces the more mature markets and is one of the highest potential markets for FILA
• -The operation will enable FILA to utilize its Indian production facilities to support global growth

/m €	20 14	20 15 FU LL YE AR	Oct Jan - 201 5	Oct De c 201 - 5
sin les Co Bu Sa re ess	26 1 ,	38 0 ,	31, 5	6, 5
Int erc om pa ny	2, 3	3, 2	2, 5	0, 7
l C ine les To Bu Sa ta ore s ss	28 4 ,	41 2 ,	34	7, 2
EB ITD A	4, 6	6, 3	5, 1	1, 2
ITD A m in % EB arg	17 7% ,	15 2% ,	0% 15,	16, 1%
lt Ne t R esu	2, 4	2, 6	2, 4	0, 2
	20 14	FU LL YE AR 20 15
ixe d A F ts sse	12 1 ,	3 55 ,
k l Ne t W ing Ca ita or p	3, 1	6, 9
/ d O he b l Pro is ion r A iv ity L ia i ity t ct v s a n	( ) 1, 1	( ) 14 0 ,
ity Ne t E qu	( ) 10 6 ,	( ) 45 9 ,
l p Ne t F ina ia it ion nc os	( ) 3, 5	( ) 2, 2

Note: key financials calendarized to December 31st of each year to take into account the fiscal year end of FILA. Based on EUR/INR exchange rate (P&L) of81,07, 71,07 and 71,18 respectively for 12M 2014, 10M 2015 and 12M2015A and EUR/INR exchange rate (BS) of 76,72 and 72,02 respectively for Dec 2014 and Dec 2015

KEY FINANCIALS

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 January 5th 2016

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