Fila — Investor Presentation 2024

Mar 19, 2024

FY2023 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 forwardlooking 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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Adjusted Core Business Sales: 779,2mln Euro Group Revenues of 779,2mln Euro; +1,9% (+14,6mln Euro on FY2022) and +6,3% net of exchange rate effect (+48,3mln Euro on FY2022). North America confirmed the expectations, the Mexican and Indian companies outperformed, contributing significantly to the Group's results growth, more than offsetting the European performance characterized by weak FY2023 Results FY2023 Results are in line with the Group expectations, despite the weakness of the European economy worsened by high interest rates, persistent inflation and the Ukraine conflict

markets. Adjusted EBITDA: 121,1mln Euro

Group Adjusted EBITDA of 121,1mln Euro, +9,8% (+10,8mln Euro on FY2022), thanks to the improvement in North America, Asia and Central and South America, despite the contraction in Europe. The Adjusted EBITDA would have been approx. 125mln Euro at comparable FY2023 Budget FX. Adjusted EBITDA Margin was 15,5% with an improvement of 110bp on FY2022. The increase is mainly due to the positive effect generated by price increase and cost efficiencies, despite the services costs increase to support the growth.

FY2023 Results

Adjusted Net Profit: 40,6mln Euro Group Adjusted Net Profit of 40,6mln Euro, -5,1% (-2,2mln Euro on FY2022). This value is significantly impacted by higher net financial expenses at 31,2mln Euro compared to the ones of the same period of the previous year, of which 29,2mln Euro mainly related to the increase in variable interest rates andthe residual part mostly linked to the negative financial exchange effects on the main currencies. The value is also impacted by an increase in taxation. DOMS listing effects The successful completion of the DOMS listing has resulted in Net Proceeds of approximately 69mln Euro from the

sale of a portion of FILA stake, while the Group remains the largest single shareholder with 30.6% of the share capital valued today approx. 308mln Euro (Updated Accounting Value of DOMS of 160,4mln Euro). Of the 69mln Euro of proceeds from the DOMS IPO, consistently with the commitments with the banks, approx. 30mln Euro were used for the distribution of extraordinary dividends in January 2024, approx. 20mln Euro for the settlement of the SFA debt lines in December 2023 and the remaining 20mln Euro will be used in 2024 to improve the efficiency of the credit lines.

FY2023 Results

Net Bank Debt Net Bank Debt of 229,5mln Euro (351,6mln Euro in FY2022) with a decrease in the last twelve months of 51,2mln Euro, excluding positive effect of Cash-In related to DOMS IPO of approx. 69mln Euro and positive IPO financial receivable effect of approx. 0,4mln Euro, to the positive effect of DOMS' NFP deconsolidation process of approx. 1,3mln Euro and to the positive FX effect of approx. 0,2mln Euro. Adjusted Free Cash Flow to Equity The proceeds from the transaction in India and the free cash flow to equity at 60,3mln Euro (23,2mln Euro in FY2022)

will enable FILA to further reduce the leverage ratio to approximately 1.7, with a Net Financial Position, excluding IFRS 16 and Mark to Market, at 226,7mln Euro. The increase is mainly due to higher operating cash flow generation and lower capital absorption of 46,3mln Euro, partially mitigated by higher CAPEX for 13,6mln Euro.

FY2023 Core Business Sales

779,2mln € +1,9% (+14,6mln €) (764,6mln € in FY 2022)

Total (mln €)	764,6	779,2
DOMS (mln €)	108,5	134,3
Proforma, excluding DOMS (mln €)	656,1	644,9
	FY 2022	FY 2023

FY2023 Core Business Sales of 779,2mln €, +1,9% on FY2022; +48,3mln € (+6,3%) at comparable FX rates, of which:

By Geographic Area: Asia +37,9mln € (+30,9%), Central and South America +22,9mln € (+29,6%), North America +5,8mln € (+1,8%) partially offset by Europe -18,2mln € (-7,8%) and Other Countries -0,1mln € (-3,1%).

Sales Breakdown by Geographic area (at comparable FX)

FY2023 Adjusted EBITDA (Ex. IFRS 16)

		FY2022	FY2023
	Reported (mln €)	103,5	106,5
121,1mln €	Adjustment (mln €)	6,8	14,6
	Total (mln €)	110,3	121,1
+9,8% (+10,8mln €)	Adjusted EBITDA Margin (%)	14,4%	15,5%	+110bp
(110,3mln € in FY2022)	Proforma, excluding DOMS
	DOMS (mln €)	15,5	25,0
	Adjusted EBITDA Proforma, excluding DOMS (mln €)	94,8	96,1
	Adjusted EBITDA Margin (%) Proforma, excluding DOMS	14,4%	14,9%	+50bp
FY2023 Adjusted EBITDA of 121,1mln €, +9,8%	on FY2022; +121,8mln € (+10,4%) at	comparable FX	rates; 14,6mln	€ of
extraordinary costs in FY2023 related to: FILA	extraordinary consultancy cost (8,5mln €,	mainly related	to DOMS IPO),	Group
reorganization costs – restructuring costs (5,5mln	€ of which 0,6mln € related to Charity	support in	products to	Ukraine and

0,6mln € related to SAP extraordinary OPEX related to Daler UK Go-Live) and Shares-Based premium (0,6mln €).

FY2023 Adjusted Net Profit (Ex. IFRS 16)

(42,8mln € in FY2022)

		FY2022	FY2023
40,6mln €	Reported Net Profit (mln €)	31,9	180,5
-5,1% (-2,2mln €)	Adjustment (mln €)	10,9	(139,9)
(42,8mln € in FY2022)	Total Adjusted Net Profit (mln €)	42,8	40,6
FY2023 Adjusted Net Profit of 40,6mln €, -5,1% on	FY2022; FY2023 Proforma* Adjusted Net	Profit of 27,4mln	€.
• The adjustment of the Net Profit in 2023A for -139,9mln	€ mainly refers to IPO DOMS and	related	deconsolidation (-154,0mln
consultancy fees (8,5mln €) and Group reorganization	costs/restructuring costs (5,5mln €).
• The adjustment of the Net Profit in 2022A for 10,9mln € mainly	refers to consultancy fees	and Up front fees	for Refinancing,
Group reorganization costs/restructuring	costs, Covid-19 pandemic and Shares-Based	premium, net of taxes effects.

*excluding DOMS 2023Actual

Net Bank Debt and NFP (Excluded IFRS 16 and Mark to Market Hedging) 2022A 2023A

Net Bank Debt and NFP (Excluded IFRS 16 and Mark to Market Hedging)
	2022A	2023A
Cash and Cash Equivalents	107,5 (459,1)	124,8 (354,3)
Financial Liabilities and Receivables Net Bank Debt	(351,6)	(229,5)
Amortized cost	1,7	2,8
NFP Excl. IFRS16 and Mark to Market Hedging	(349,8)	(226,7)
Mark to Market Hedging	3,2	(0,9)
IFRS 16	(88,5)	(75,9)
NFP included IFRS 16 and Financial Instruments	(435,1)	(303,4)
• 2023A vs 2022A:
Net Bank Debt decrease of 122,1mln €.	Decrease of	51,2mln €	normalized by positive	Cash-In related to DOMS	IPO of approx.
69,1mln € and to positive IPO financial	receivable	effect of	approx. 0,4mln €, to	the positive effect	of DOMS' NFP
deconsolidation process of approx. 1,2mln	€ and to the	positive FX	effect of approx. 0,2mln	€.

deconsolidation process of approx. 1,2mln € and to the positive FX effect of approx. 0,2mln €.

Covenant Ratio

Covenant Ratio
	2022A	2023A
	3,1	1,7
Leverage ratio
Covenant leverage ratio - SFA	3,9	3,2
Equity Investment in DOMS vs NFP for Covenant
Equity Investment in DOMS Book Value**	2022A 57,3	2023A 160,4

Equity Investment in DOMS vs NFP for Covenant

	2022A	2023 A
Equity Investment in DOMS Book Value**	57,3	160,4
NFP Excl. IFRS16 and Mark to Market Hedging	(349,8)	(226,7)

Trade Working	Capital/Sales	Reported
	2022A	2023A	2023A (Proforma*)
Trade Working Capital	300,1	258,5	258,5
Sales Reported Trade Working Capital/Sales Reported	764,6 39,2%	779,2 33,2%	644,9 40,1%

Cash Flow Statement

Cash Flow Statement
(€ million)	2022A	2023A
CASH FLOW
EBIT	68,9	74,3
Adjustments for non monetary costs	36,7	38,0
Adjustments for taxes	(17,6)	(19,4)
Cash-flow from operating activities before changes in NWC	88,0	92,8
Changes in net working capital	(19,1)	27,2
Operating cash-flow	68,9	120,0
Investments in tangible and intangible assets	(16,7)	(30,3)
Free Cash Flow	52,2	89,8
Net financial expenses	(24,8)	(27,3)
Other changes	(4,2)	(2,1)
Free Cash Flow to Equity	*** 23,2	60,3
Capital increase/reimbursement/dividends	(15,2)	(9,2)
Changes in Amortized cost	(1,9)	1,1
Changes mark to market hedging	13,0	(4,1)
Effect of FX rate movements*	(14,4)	0,2
Changes in IFRS 16 Net Financial Position	(1,2)	12,6
M&A Effect 2022 (Creative Art Products Limited)	(1,4)	-
M&A Effect 2023 (Acquisition of Micro Wood Private Limited by DOMS)	-	(8,2)
NFP change of DOMS Industries Limited deconsolidated**	-	9,9
Proceeds from sale of stake in DOMS Industries Limited**	-	69,1

APPENDIX

Income Statement Reported (€ million) 2022A % on Sales 2023A % on Sales Core Business Sales 764,6 779,2 Other revenues 10,1 8,7 Total revenues 774,6 787,9 Cost for Raw Materials and Supplies net Increase(decrease) inventory (375,5) (368,7) (49,1%) (47,3%) Costs for Services and Use of Third-Party Assets (119,8) (128,4) (15,7%) (16,5%) Personnel Costs (152,3) (157,1) (19,9%) (20,2%) Other Operating Costs (7,7) (11,3) (1,0%) (1,4%)
Total operating costs (655,4) (665,6) (85,7%) (85,4%)
EBITDA 119,2 15,6% 122,4 15,7%
* Depreciation and Amortization (42,2) (41,9) (5,5%) (5,4%)
Write-Downs (4,2) (2,0) (0,6%) (0,3%)
EBIT 72,7 9,5% 78,5 10,1% Financial income/expenses (34,9) (37,7)
(4,6%) (4,8%) Gain for Loss of Control - 167,6
0,0% 21,5% Income/expenses from associates at equity method 0,8 0,9
PBT 38,6 5,1% 209,3 26,9%
Taxes (8,3) (30,7) (1,1%) (3,9%)
Total net profit (loss) of the period 30,3 4,0% 178,6 22,9%
Total net profit (loss) attributable to non controlling interests 5,0 8,0 0,7% 1,0%
Fila Group's total net profit (loss) of the period 25,3 3,3% 170,6 21,9%

Data in millions of euros; for precise data refer to 12M FILA financial report

Income Statement Adjusted

	(€ million)	2022A	% on Sales	2023A	% on Sales	* 2023A Proforma	% on Sales
	REPORTED CORE BUSINESS SALES	764,6		779,2		644,9
	Total Adjustments	-		-		-
NTS ME	ADJUSTED CORE BUSINESS SALES	764,6		779,2		644,9
UST	REPORTED EBITDA	119,2	15,6%	122,4	15,7%	96,7	15,0%
&L ADJ	IFRS 16 Impact	(15,7)		(15,9)		(15,2)
P	Total Adjustments ADJUSTED EBITDA EXCLUDED IFRS 16	6,8 110,3	14,4%	14,6 121,1	15,5%	14,6 96,1	14,9%
	REPORTED NET PROFIT	30,3	4,0%	178,6	22,9%	12,1	1,9%
	IFRS 16 Impact	1,6		1,9		1,8
	Total Adjustments	10,9		(139,9)		13,5
	ADJUSTED NET PROFIT EXCLUDED IFRS 16	42,8	5,6%	40,6	5,2%	27,4	4,3%

Balance Sheet Reported

EMARKET SDIR
CERTIFIED

(€ million)	2022A	2023A
Intangible assets	446,5	378,0
Tangible Assets	166,2	123,3
Biological Assets	1,8	1,2
Financial Fixed Assets	4,2	161,1
Fixed Assets	618,7	663,7
Other Non Current Assets/Liabilities	24,0	23,3
Trade Working Capital	300,1	258,5
Other Current Assets and Liabilities	2,8	4,5
Net Working Capital	302,9	263,0
Provisions & Funds	(82,8)	(72,7)
NET CAPITAL EMPLOYED	862,8	877,4
Shareholders equity	(427,7)	(574,0)
Net Financial Position	(435,1)	(303,4)

NFP Reported
	2022A	2023A
NFP Reported	(435,1)	(303,4)
Mark to Market Hedging	3,2	(0,9)
IFRS 16	(88,5)	(75,9)
NFP Excl. IFRS16 and Mark to Market Hedging	(349,8)	(226,7)
• 2023A vs 2022A:
Net Financial Position Reported decreased of 131,7mln	€ compared	to FY2022.

F.I.L.A. Shareholders

Investor Relations F.I.L.A.

Cristian Nicoletti CFO/IR Officer - Francesco Cocco IR ir@fila.it - (+39) 02 38105206