Fila — Investor Presentation 2022

May 13, 2022

Q1 2022 FILA Group Results

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 F.I.L.A.'s activities. Statements contained in this presentation, particularly regarding any possible or assumed future performance of the F.I.L.A. Group, are or may be forward-looking statements based on F.I.L.A.'s current expectations and projections about future events. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond F.I.L.A.'s control. These risks, uncertainties and factors may cause F.I.L.A.'s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performances or achievements). Forward-looking statements are not guarantees of future performance. Consequently, F.I.L.A. 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 expected developments. The data and information contained in this document are subject to changes and integrations. Although F.I.L.A. reserves the right to make such changes and integrations when it deems necessary or appropriate, F.I.L.A. assumes no affirmative obligation to update, change or integrate this document, except as and to the extent required by law. Any reference to the past performance of the F.I.L.A. Group shall not be taken as an indication of future performance. In addition, this presentation includes certain ''Adjusted'' financial and operating indicators and non-IFRS measures, which have been adjusted to reflect extraordinary events, non-recurring and/or non-monetary transactions and/or activities that are not directly related to the Group's ordinary business. These measures are not indicative of our historical operating results, nor are they meant to be predictive of future results. These measures are used by F.I.L.A.'s management to monitor the underlying performance of the business and the operations. Since not all companies calculate these measures in an identical manner, F.I.L.A.'s presentation may not be consistent with similar measures used by other companies. Such "Adjusted" information has been included to facilitate the comparison of financial information among different financial periods; however, it should be noted that such information is not recognized as a measure of financial performance or liquidity under IFRS and/or does 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. The information contained in this document does not constitute or form any part of, and should not be construed as, any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as any inducement to enter into, any investment activity. This document does not purport to contain all of the information that may be required to evaluate any investment in the Company or any of its securities and should not be relied upon to form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is intended to present background information on F.I.L.A., its business and the industry in which it operates and is not intended to provide complete disclosure upon which an investment decision could be made. The merit and suitability of investment in F.I.L.A. should be independently evaluated and determined by investors. Analyses in this presentation are not, and do not purport to be, appraisals of the assets, stock or business of F.I.L.A., and do not form any publicity material relating to the securities. Any person considering an investment in F.I.L.A. is advised to obtain independent advice as to the legal, tax, accounting, regulatory, financial, credit and other related advice prior to making an investment.

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Q1 2022 Highlights

• ˗ Adjusted Core Business Sales of 166,0mln €, +17,2% (+24,3mln €) on the same period of the previous year (141,7mln € in Q1 2021); +13,0% at comparable FX rates (+18,5mln €). Asia +8,7mln € (+51,4%), Middle and South America +6,6mln € (+81,4%) and North America +3,4mln € (+5,6%) vs Q1 2021, and partially offset by Europe -0,2mln € (-0,4%) and Other Countries -0,01mln € (-4,0%); ˗ Adjusted EBITDA, excluding IFRS 16 impact, of 22,7mln €, +12,9% (+2,6mln €) on the same period of the previous year (20,1mln € in Q1 2021); +11,7% at comparable FX rates (+2,3mln €), mainly related to the positive performance in Asia, Middle and South America and North America; ˗ Adjusted EBITDA margin at 13,7% (14,2% in FY 2021) due to inflation impact on raw material, transportation and energy cost partially mitigated through sale price increase and good operating fixed cost management compared to Q1 2021; ˗ Adjusted Net Result, excluding IFRS 16 impact, of 7,9mln € with an improvement compared to 7,1mln € in Q1 2021
• ˗ Net Bank Debt of 380,6mln € (423,1mln € as at 31 March 2021) with a decrease in last twelve months of 54,3mln €, excluding negative FX effect of approx. 10,1mln € and M&A effect of approx. 1,7mln €; ˗ "Free Cash Flow to Equity" at -29,6mln €, due to business seasonality impact and to the inventories increase to
• support the growth mainly to count the persisting disruption of the world supply chain amplified after the pandemia by the Russian-Ukrainian crisis (-17,9mln € in Q1 2021)
• (+10,2%);

Q1 2022 Core Business Sales

• Adjusted Core Business Sales of 166,0mln €, +17,2% on Q1 2021;

• +18,5mln € (+13,0%) at comparable FX rates, of which: ‒ By Geographic Area: Asia +8,7mln € (+51,4%), Middle and South America +6,6mln € (+81,4%) and North America +3,4mln € (+5,6%) and partially offset by Europe -0,2mln € (-0,4%) and Other Countries -0,01mln € (-4,0%); ‒ 0,1mln € adjustment in Q1 2021A due to customer claims for Covid-19 mainly of Dixon Ticonderoga Company (US).
  -

SALES BY GEOGRAPHICAL AREA

Data in millions of euros; for precise data refer to 3M FILA financial report

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• 0,4 (+11,7%) at comparable FX rates; • 0,4mln € of extraordinary costs in Q1 2022A mainly related to FILA Group reorganization costs – restructuring costs and consultancy fees (0,4mln €); 1,8mln € of extraordinary costs in Q1 2021A mainly related to Covid-19 pandemic and reorganization costs.

ADJUSTED EBITDA BY GEOGRAPHICAL AREA

Q1 2022 Net Income Adjusted (Excluded IFRS 16)

• 0,4 • Adjusted Net Income of 7,9mln €, +10,2% on Q1 2021A due to the improvement of the Operating Results; • The adjustment of the Group Result in Q1 2022A for 0,4mln € mainly refers to Group reorganization costs – restructuring costs and consultancy fees, net of taxes effects; • The adjustment of the Group Result in Q1 2021A for 1,4mln € mainly refers to extraordinary operating costs for Covid-19 pandemic impact, net of taxes effects.
  -

Q1 2022 Net Bank Debt and NFP

•	Net Bank Debt decrease of 42,5mln € in the last twelve months, 54,3mln € excluding negative FX effect of approx. 10,1mln € and M&A effect of approx. 1,7mln €;
•	Q1 2022A Net Financial Position increase of 35,8mln € compared to FY2021 (please refer to page 8 for details).

	Q1 2021A	Q1 2022A
Trade Working Capital	309,7	324.9
Sales Reported Kolling	603,2	6/1.1
Trade Working Capital/Sales Reported	51,3%	47,9%

Q1 2022 Cash Flow Statement

Q1 2022 Cash Flow Statement
(€ million)	Q1 2021A	Q1 2022A
CASH FLOW
EBIT	11,0	14,6
Adjustments for non monetary costs	8,2	8,5
Adjustments for taxes	(1,5)	(3,9)
Cash-flow from operating activities before changes in NWC	17,7	19,2
Changes in net working capital Operating cash-flow	(31,3) (13,6)	(42,6) (23,4)
Investments in tangible and intangible assets	(2,4)	(2,8)
Free Cash Flow	(16,0)	(26,2)
Net financial expenses	(4,8)	(4,0)
Other changes	2,9	0,6
Free Cash Flow to Equity	(17,9)	(29,6)
Capital increase/reimbursement/dividends	(0,5)	(1,7)
Changes in Amortized cost	(0,5)	(1,4)
Changes mark to market hedging	1,9	7,7
Effect of FX rate movements*	(8,7)	(3,9)
Changes in IFRS 16 Net Financial Position	(5,9)	(5,3)
M&A Effect (Creative Arts and Products Limited)	-	(1,7)
Changes in Net Financial Position	(31,5)	(35,8)

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Q1 2022 Income Statement Reported

PROFIT & LOSS Core Business Sales		% on Sales	Q1 2022A	% on Sales
	141,6		166,0
Other revenues	2,3		2,2
Total revenues	143,8		168,2
Cost for Raw Materials and Supplies net Increase(decrease) inventory	(62,0)	(43,8%)	(76,5)	(46,1%)
Costs for Services and Use of Third-Party Assets	(24,8)	(17,5%)	(26,9)	(16,2%)
Personnel Costs	(33,3)	(23,6%)	(37,3)	(22,5%)
Other Operating Costs	(1,8)	(1,2%)	(1,4)	(0,8%)
Total operating costs	(121,9)	(86,1%)	(142,2)	(85,7%)
EBITDA	21,9	15,5%	26,0	15,7%
Depreciation and Amortization	(10,0)	(7,1%)	* (10,2)	(6,2%)
Write-Downs	(0,1)	(0,0%)	(0,3)	(0,2%)
EBIT	11,9	8,4%	15,5	9,3%
Financial income/expenses	(4,7)	(3,3%)	(5,2)	(3,0%)
Income/expenses from associates at equity method	0,0	0,0%	0,1	0,1%
PBT	7,2	5,1%	10,5	6,3%
Taxes	(1,6)	(1,2%)	(2,3)	(1,4%)
Total net profit (loss) of the period	5,6	4,0%	8,1	4,9%
Total net profit (loss) attributable to non controlling interests	0,2	0,1%	1,0	0,6%
Fila Group's total net profit (loss) of the period	5,4	3,8%	7,1	4,3%

Q1 2022 Income Statement Adjusted

Q1 2022 Income Statement Adjusted
(€ million)	Q1 2021A	% on Sales	Q1 2022A	% on Sales
P&L ADJUSTMENTS
REPORTED CORE BUSINESS SALES Total Adjustments ADJUSTED CORE BUSINESS SALES	141,6 0,1 141,7		166,0 - 166,0
REPORTED EBITDA IFRS 16 Impact Total Adjustments ADJUSTED EBITDA EXCLUDED IFRS 16	21,9 (3,7) 1,8 20,1	15,5% 14,2%	26,0 (3,8) 0,4 22,7	15,7% 13,7%
REPORTED FILA GROUP NET PROFIT IFRS 16 Impact	5,4 0,3	3,8%	7,1 0,4 0,4	4,3%
Total Adjustments	1,4

Q1 2022 Balance Sheet Reported

Q1 2022 Balance Sheet Reported
(€ million)	2021A	Q1 2022A
BALANCE SHEET
Intangible assets	445,8	448,7
Tangible Assets	169,7	173,4
Biological Assets	1,9	2,0
Financial Fixed Assets	5,6	5,5
Fixed Assets	623,0	629,6
Other Non Current Assets/Liabilities	19,1	19,2
Trade Working Capital Other Current Assets and Liabilities	277,2 (0,2)	324,9 0,6
Net Working Capital	277,0	325,5
Provisions & Funds	(83,7)	(83,6)
NET CAPITAL EMPLOYED	835,4	890,8
Shareholders equity	(398,1)	(417,7)
Net Financial Position	(437,3)	(473,1)
TOTAL NET SOURCES	(835,4)	(890,8)

sexies of Legislative Decree No. 58/1998).

Investor Relations F.I.L.A. ir@fila.it (+39) 02 38105206

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