Geox

Earnings Release • Nov 13, 2015

INTERIM REPORT FIRST NINE MONTHS OF 2015

CONTENTS

Geox S.p.A. Registered Offices in Italy - Via Feltrina Centro 16, Biadene di Montebelluna (Treviso) Share Capital - Euro 25,920,733.1 fully paid Tax Code and Treviso Companies Register No. 03348440268

DIRECTORS' REPORT 5
Company officers 5
Directors' report 6 Introduction 6
The Group's economic performance 7
Economic results summary 7
Sales 8
Cost of sales and Gross Profit 10 Operating expenses and Operating income (EBIT) 10
EBITDA 10
Income taxes and tax rate 10
The Group's financial performance 11
Outlook for operations and significant subsequent events 14
Consolidated income statement 16
Consolidated statement of comprehensive income 16
Consolidated statement of financial position 17
Consolidated statement of cash flows 18
Consolidated statements of changes in equity 19
Explanatory Notes 20
Statement by the manager responsible for the preparation of the company's financial documents 20

Company officers

Board of Directors

Giorgio Presca (1) CEO and Executive Director (*) Roland Berger (2) (4) Independent Director Fabrizio Colombo (2) (3) (4) Independent Director Lara Livolsi (3) Independent Director Duncan L. Niederauer Claudia Baggio Alessandro Antonio Giusti (2) (3) (4) Director

Name Position and independent status (where applicable)

Mario Moretti Polegato (1) Chairman and Executive Director Enrico Moretti Polegato (1) Vice Chairman and Executive Director Independent Director Director

(1) Member of the Executives Committee (2) Member of the Audit and Risk Committee (3) Member of the Compensation Committee (4) Member of the Nomination Committee

(*) Powers and responsibilities for ordinary and extraordinary administration, within the limits indicated by law and the Articles of Association, in compliance with the powers of the Shareholders' Meeting, the Board of Directors and the Executive Committee, in accordance with the Board of Directors' resolution of April 17, 2013.

Board of Statutory Auditors

Name	Position
Francesco Gianni	Chairman
Valeria Mangano	Statutory Auditor
Francesca Meneghel	Statutory Auditor
Giulia Massari	Alternate Auditor
Andrea Luca Rosati	Alternate Auditor

Independent Auditors

Deloitte & Touche S.p.A.

Directors' report

Introduction

The market in which the Geox Group operates is characterized by seasonal phenomena, typical of the sector, leading to differences in the flow of costs and revenues in the various months of the year. In particular, the invoicing of products in the second six months, corresponding to the Fall/Winter sales period, is characterized by a concentration in the months of July, August and September, while the operating costs showed a more linear trend throughout the second six months.

It is important to remember, therefore, that the Income Statement relating to the First nine months cannot be considered as a proportionate part of the whole financial period and the quarterly results of the period ending on September 30 are not comparable with those as of June 30 and December 31.

From a financial point of view, the quarterly figures are also affected by the same seasonal phenomena. The figures as of September 30, in fact, compared to the figures as of June 30 and December 31 highlight a significantly higher net working capital.

The Group's economic performance

Economic results summary

The main results are outlined below:

• Net sales of Euro 708.9 million, with an increase of 6.1% (3.9% constant exchange rates) compared to Euro Euro 668.4 million in the first nine months of 2014;
• EBITDA of Euro 59.5 million, compared to Euro 46.3 million in the first nine months of 2014, with a 8.4% margin;
• EBIT of Euro 31.2 million, compared to Euro 15.6 million in the first nine months of 2014, with a 4.4% margin;
• Net income of Euro 17.1 million, compared to Euro 4.5 million in the same period of 2014, with a 2.4% margin.

In the following table a comparison is made between the consolidated income statement of the first nine months of 2015 and 2014:

(Thousands of Euro)	9 Months 2015	%	9 Months 2014	%	2014	%
Net sales	708,874	100.0%	668,389	100.0%	824,243	100.0%
Cost of sales	(354,381)	(50.0%)	(351,619)	(52.6%)	(420,451)	(51.0%)
Gross profit	354,493	50.0%	316,770	47.4%	403,792	49.0%
Selling and distribution costs	(41,739)	(5.9%)	(39,137)	(5.9%)	(48,519)	(5.9%)
General and administrative expenses	(251,625)	(35.5%)	(231,280)	(34.6%)	(308,257)	(37.4%)
Advertising and promotion	(29,927)	(4.2%)	(30,738)	(4.6%)	(42,126)	(5.1%)
EBIT	31,202	4.4%	15,615	2.3%	4,890	0.6%
Net interest	(5,160)	(0.7%)	(5,275)	(0.8%)	(6,335)	(0.8%)
PBT	26,042	3.7%	10,340	1.5%	(1,445)	(0.2%)
Income tax	(8,905)	(1.3%)	(5,830)	(0.9%)	(1,496)	(0.2%)
Tax rate	34%		56%		-104%
Net result	17,137	2.4%	4,510	0.7%	(2,941)	(0.4%)
EPS (Earnings per shares)	0.07		0.02		(0.01)
EBITDA	59,485	8.4%	46,338	6.9%	42,643	5.2%

EBITDA: is the EBIT plus depreciation, amortization and can be directly calculated from the financial statements as integrated by the notes.

Disclaimer

This Report, and in particular the section entitled "Outlook for operation and significant subsequent events", contains forward-looking statements. These statements are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: volatility and deterioration of capital and financial markets, changes in commodity prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (in each case, in Italy or abroad), and many other factors, most of which are outside of the Group's control.

Sales

Nine months 2015 consolidated net sales increased by 6.1% (3.9% at constant exchange rates) to Euro 708.9 million. Footwear sales, which accounted for about 90% of consolidated sales, amounting to Euro 639.6 million, increased 9.3% compared to first nine months of 2014. Apparel sales, which represented 10% of consolidated sales, equal to Euro 69.3 million, compared to Euro 83.0 million of the first nine months 2014.

(Thousands of Euro)	9 Months 2015	%	9 Months 2014	%	Var. %
Footwear	639,612	90.2%	585,384	87.6%	9.3%
Apparel	69,262	9.8%	83,005	12.4%	(16.6%)
Net sales	708,874	100.0%	668,389	100.0%	6.1%

Sales in Italy, the Group's main market, which accounted for 34% of sales, in line with the first nine months 2014, amounted to Euro 238.1 million showing a 5.4% increase compared with the same period of the previous year.

Sales in Europe, which accounted for 43% of sales increased by 3.0% to Euro 303.5 million, compared with Euro 294.8 million in the first nine months of 2014.

North American sales amounted to Euro 46.1 million, showing an increase of 13.9% (+1.7% at constant exchange rates). Sales in Other Countries increased by 12.9% compared to the first nine months of 2014 (+5.6% at constant exchange rates).

(Thousands of Euro)	9 Months 2015	%	9 Months 2014	%	Var. %
Italy	238,147	33.6%	225,878	33.8%	5.4%
Europe (*)	303,527	42.8%	294,828	44.1%	3.0%
North America	46,077	6.5%	40,438	6.1%	13.9%
Other countries	121,123	17.1%	107,245	16.0%	12.9%
Net sales	708,874	100.0%	668,389	100.0%	6.1%

(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.

Sales of the DOS channel, which represent 39% of Group revenues, grew 9.5% to Euro 276.6 million compared to the first nine months of 2014. The improvement is mainly driven by new openings and by comparable store sales growth recorded on DOS channel (+4.1%).

Comparable sales related to the Fall/Winter Collection (from August 24, 2015 to November 1, 2015) show a 10.7% growth. Comparable sales year to date (from January 1, 2015 to November 1, 2015) are up 5.1%.

Sales of the franchising channel, which account for 17% of Group revenues, amount to Euro 121.5 million, with a decrease of 3.3%. This trend is due to the effect of closing of shops not in line with the expected profitability standards which has been partially offset by the positive trend in comparable store sales at locations that have been open for at least 12 months (+4.5%).

Multibrand stores representing 44% of Group revenues (43% in the first nine months of 2014) amount to Euro 310.8 million, with an increase of 7.1%.

(Thousands of Euro)	9 Months 2015	%	9 Months 2014	%	Var. %
Multibrand	310,762	43.8%	290,140	43.4%	7.1%
Franchising	121,504	17.1%	125,630	18.8%	(3.3%)
DOS*	276,608	39.0%	252,619	37.8%	9.5%
Geox Shops	398,112	56.2%	378,249	56.6%	5.3%
Net sales	708,874	100.0%	668,389	100.0%	6.1%

* Directly Operated Store

As of September 30, 2015, the overall number of Geox Shops was 1,157 of which 470 DOS. During the first nine months of 2015, 84 new Geox Shops were opened and 152 have been closed, in line with the rationalization plan of the DOS network.

		09-30-2015	12-31-2014		9 Months 2015
	Geox Shops	of which DOS	Geox Shops	of which DOS	Net Openings	Openings	Closings
Italy	359	132	421	173	(62)	8	(70)
Europe (*)	342	178	350	167	(8)	15	(23)
North America	46	46	44	44	2	6	(4)
Other countries (**)	410	114	410	93	0	55	(55)
Total	1,157	470	1,225	477	(68)	84	(152)

(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.

(**) Includes Under License Agreement Shops (151 as of September 30 2015, 161 as of December 31 2014). Sales from these shops are not included in the franchising channel.

Cost of sales and Gross Profit

Cost of sales, as a percentage of sales, was 50.0% compared to 52.6% of the first nine months 2014, producing a gross margin of 50.0% (47.4% in the same period of 2014).

The increase in gross profit, in line with management expectations, is explained by the increased profitability in sales and the steps taken in terms of product mix, channels, prices.

Operating expenses and Operating income (EBIT)

Selling and distribution expenses as a percentage of sales were 5.9%, in line with the first nine months of 2014.

General and administrative expenses were equal to Euro 251.6 million, compared with Euro 231.3 million of the first nine months 2014. General and administrative expenses, as a percentage of sales, were 35.5%.

The increase in these costs is mainly due to:

• the implementation of projects designed to generate greater efficiency on the part of the production and distribution structure, new hires at management level and strengthening of the structures in the business areas that are growing, those in strategic countries and those with significant development potential;
• costs of opening and running of new directly operated stores (DOS) including the conversion to directly operated stores of stores previously managed by some franchisees.

Advertising and promotions expenses were equal to 4.2% of sales, 4.6% in the first nine months of 2014.

The operating result (EBIT) is equal to Euro 31.2 million (4.4% on sales) compared with Euro 15.6 million of the first nine months 2014 (2.3% on sales).

EBITDA

EBITDA was Euro 59.5 million, 8.4% of sales, compared to Euro 46.3 million (6.9% on sales) of the first nine months of 2014.

Income taxes and tax rate

Income taxes were equal to Euro 8.9 million, compared to Euro 5.8 million of the first nine months of 2014.

The Group's financial performance

The following table summarizes the reclassified consolidated balance sheet:

(Thousands of Euro)	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
Intangible assets	56,640	60,150	57,506
Property, plant and equipment	66,877	64,497	61,573
Other non-current assets - net	54,085	54,802	54,565
Total non-current assets	177,602	179,449	173,644
Net operating working capital	244,839	226,651	306,925
Other current assets (liabilities), net	(34,810)	(10,625)	(21,225)
Net invested capital	387,631	395,475	459,344
Equity	380,191	373,680	378,933
Provisions for severance indemnities, liabilities and charges	8,816	8,813	8,818
Net financial position	(1,376)	12,982	71,593
Net invested capital	387,631	395,475	459,344

The Group balance sheet shows a positive financial position of Euro 1.4 million.

The following table shows the mix and changes in net operating working capital and other current assets (liabilities):

(Thousands of Euro)	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
Inventories	229,499	287,732	242,175
Accounts receivable	194,980	106,517	179,993
Accounts payable	(179,640)	(167,598)	(115,243)
Net operating working capital	244,839	226,651	306,925
% of sales for the last 12 months	28.3%	27.5%	38.2%
Taxes payable	(12,712)	(6,439)	(19,457)
Other non-financial current assets	25,779	40,958	46,710
Other non-financial current liabilities	(47,877)	(45,144)	(48,478)
Other current assets (liabilities), net	(34,810)	(10,625)	(21,225)

The ratio of net working capital on sales comes to 28.3% compared with 38.2% of the first nine months 2014. This improvement is mainly due to the reduction in inventory and to the strengthening of the long-term partnerships with suppliers, making it possible to optimize payments.

The following table gives a reclassified consolidated cash flow statement:

(Thousands of Euro)	9 Months 2015	9 Months 2014	2014
Net result	17,137	4,510	(2,941)
Depreciation, amortization and impairment	28,283	30,665	37,753
Other non-cash items	18,034	15,377	(1,483)
	63,454	50,552	33,329
Change in net working capital	(23,393)	(105,941)	(15,434)
Change in other current assets/liabilities	23,831	3,244	(6,842)
Cash flow from operations	63,892	(52,145)	11,053
Capital expenditure	(27,460)	(22,716)	(35,754)
Disposals	796	2,786	2,912
Net capital expenditure	(26,664)	(19,930)	(32,842)
Free cash flow	37,228	(72,075)	(21,789)
Change in net financial position	37,228	(72,075)	(21,789)
Initial net financial position - prior to fair value adjustment of derivatives	(41,012)	(18,339)	(18,339)
Change in net financial position	37,228	(72,075)	(21,789)
Translation differences	(1,169)	(1,708)	(884)
Final net financial position - prior to fair value adjustment of derivatives	(4,953)	(92,122)	(41,012)
Fair value adjustment of derivatives	6,329	20,529	28,030
Final net financial position	1,376	(71,593)	(12,982)

During the period net capital expenditure were equal to Euro 26.7 million (Euro 19.9 million in the first nine months of 2014), of which Euro 9.8 million for new Geox Shop openings and refurbishment and Euro 9.5 million related to the Serbian productive plant.

The following table gives a breakdown of the net financial position:

(Thousands of Euro)	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
Cash and cash equivalents	25,285	53,355	25,599
Current financial assets - excluding derivatives	221	206	230
Bank borrowings and current portion of long-term loans	(20,578)	(95,673)	(98,989)
Current financial liabilities - excluding derivatives	0	(233)	(486)
Net financial position - current portion	4,928	(42,345)	(73,646)
Non-current financial assets	181	1,586	1,586
Long-term loans	(10,062)	(253)	(20,062)
Net financial position - non-current portion	(9,881)	1,333	(18,476)
Net financial position - prior to fair value adjustment of derivatives	(4,953)	(41,012)	(92,122)
Fair value adjustment of derivatives	6,329	28,030	20,529
Net financial position	1,376	(12,982)	(71,593)

Before the fair value adjustment of derivatives, net financial position was Euro -5.0 million, compared to Euro -41.0 million at the end of 2014. After fair value adjustment of derivatives, which positively affected 2015 first nine months for Euro 6.3 million (Euro 28.0 as of December 31, 2014), net financial position was equal to Euro 1.4 million (Euro - 13.0 million at the end of 2014).

Outlook for operations and significant subsequent events

The Group maintained a positive momentum in the first nine months of 2015. Even though there are still some uncertainties about global economic growth and certain markets, such as China, Russia, Ukraine, Thailand or Greece, are showing real weaknesses, it is still possible to see signs of improvement that boost management's confidence in being able to achieve solid growth in revenues and profitability for the Group. The strategy appears to be correct and the 2015 results are in line with what was promised, revenue growth in key markets is solid, the gross margin is expanding and operating profitability is also moving in the right direction; this thanks to the operating leverage brought on by rationalization of the store network and the steps taken by management in terms of efficiency and specialization.

Regarding the entire year 2015, market expectations are very challenging. If the trend of solid growth that we have seen in major markets such as Italy, France, Spain and Germany is confirmed in November and December, management is confident that the Group will be able to achieve results substantially in line with expectations.

As for the outlook, management would like to point out that a number of important factors have to be taken into account:

• i. In relation to the first half of 2016, the Spring/Summer order backlog of the multi-brand channel confirms solid growth and, as of to date, has posted an increase of 10%.
• ii. Management is also implementing plans to boost sales margins through specific action on product, channel and price mix, and improving comparable sales in both directly operated and franchisee stores.

Management is assuming that these positive factors confirm the strategy goals and that the expected solid revenue growth and the strong performance in the business efficiency will lead, in any case, to an expansion in gross margin (in absolute value) compared to the previous year and thus will help to mitigate the unfavorable forex effect (Euro depreciation against the USD).

In February 2016 management will present the new Strategic Plan for 2016-2018 focused on the evolution of the strategic vision of the Brand, the product innovation, the acceleration of the growth path, the balancing of the geographical footprint with an expansion also on US\$ areas. Furthermore management will present the positive outcomes related to the new European production hub ramp-up and the further optimization of the international sourcing and supply chain strategy.

Biadene di Montebelluna, November 12, 2015

for the Board of Directors The Chairman Mr. Mario Moretti Polegato

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES

Consolidated income statement

(Thousands of Euro)	9 Months 2015	9 Months 2014	2014
Net sales	708,874	668,389	824,243
Cost of sales	(354,381)	(351,619)	(420,451)
Gross profit	354,493	316,770	403,792
Selling and distribution costs	(41,739)	(39,137)	(48,519)
General and administrative expenses	(251,625)	(231,280)	(308,257)
Advertising and promotion	(29,927)	(30,738)	(42,126)
EBIT	31,202	15,615	4,890
Net interest	(5,160)	(5,275)	(6,335)
PBT	26,042	10,340	(1,445)
Income tax	(8,905)	(5,830)	(1,496)
Net result	17,137	4,510	(2,941)
	0.07	0.02	(0.01)
Earnings per share [Euro] Diluted earnings per share [Euro]	0.07	0.02	(0.01)

Consolidated statement of comprehensive income

(Thousands of Euro)	9 Months 2015	9 Months 2014	2014
Net income	17,137	4,510	(2,941)
Other comprehensive income that will not be reclassified subsequently to profit or loss:
- Net gain (loss) on actuarial defined-benefit plans	(13)	(213)	(391)
Other comprehensive income that may be reclassified subsequently to profit or loss: - Net gain (loss) on Cash Flow Hedge, net of tax	(9,404)	20,064	23,078
- Currency translation	(1,209)	(857)	(1,560)
Net comprehensive income	6,511	23,504	18,186

Consolidated statement of financial position

(Thousands of Euro)	Sept. 30, 2015	Dec. 31, 2014	Sept. 30, 2014
ASSETS:
Intangible assets	56,640	60,150	57,506
Property, plant and equipment Deferred tax assets	66,877 39,590	64,497 39,514	61,573 39,218
Non-current financial assets	181	1,586	1,586
Other non-current assets	16,835	17,379	17,499
Total non-current assets	180,123	183,126	177,382
Inventories	229,499	287,732	242,175
Accounts receivable	194,980	106,517	179,993
Other non-financial current assets	25,779	40,958	46,710
Current financial assets	8,554	30,002	23,413
Cash and cash equivalents	25,285	53,355	25,599
Current assets	484,097	518,564	517,890
Total assets	664,220	701,690	695,272
LIABILITIES AND EQUITY:
Share capital	25,921	25,921	25,921
Reserves	337,133	350,700	348,502
Net income	17,137	(2,941)	4,510
Equity	380,191	373,680	378,933
Employee severance indemnities	2,698	2,756	2,558
Provisions for liabilities and charges	6,118	6,057	6,260
Long-term loans	10,062	253	20,062
Other long-term payables	2,340	2,091	2,152
Total non-current liabilities	21,218	11,157	31,032
Accounts payable	179,640	167,598	115,243
Other non-financial current liabilities	47,877	45,144	48,478
Taxes payable	12,712	6,439	19,457
Current financial liabilities	2,004	1,999	3,140
Bank borrowings and current portion of long-term loans	20,578	95,673	98,989
Current liabilities	262,811	316,853	285,307
Total liabilities and equity	664,220	701,690	695,272

Consolidated statement of cash flows

(Thousands of Euro)	9 Months 2015	9 Months 2014	2014
CASH FLOW FROM OPERATING ACTIVITIES:
Net result	17,137	4,510	(2,941)
Adjustments to reconcile net income to net cash provided
(used) by operating activities:
Depreciation and amortization and impairment	28,283	30,665	37,753
Increase in (use of) deferred taxes and other provisions	9,483	18,139	4,812
Provision for employee severance indemnities, net	(83)	(38)	(11)
Other non-cash items	8,634	(2,724)	(6,285)
	46,317	46,042	36,269
Change in assets/liabilities:
Accounts receivable	(97,464)	(99,646)	(9,408)
Other assets	15,230	(15,043)	(9,599)
Inventories	63,398	48,405	(2,696)
Accounts payable	10,673	(54,700)	(3,330)
Other liabilities	2,224	7,561	4,807
Taxes payable	6,377	10,726	(2,049)
	438	(102,697)	(22,275)
Operating cash flow	63,892	(52,145)	11,053
CASH FLOW USED IN INVESTING ACTIVITIES:
Capital expenditure on intangible assets	(5,142)	(5,243)	(9,099)
Capital expenditure on property, plant and equipment	(22,318)	(17,473)	(26,655)
	(27,460)	(22,716)	(35,754)
Disposals	796	2,786	2,913
(Increase) decrease in financial assets	1,393	(79)	(68)
Cash flow used in investing activities	(25,271)	(20,009)	(32,909)
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES:
Increase (decrease) in short-term bank borrowings, net	5,633	(20,679)	(21,615)
Loans:
- Proceeds	20,000	70,697	48,413
- Repayments	(93,678)	-	-
Cash flow used in financing activities	(68,045)	50,018	26,798
Increase (decrease) in cash and cash equivalents	(29,424)	(22,136)	4,942
Cash and cash equivalents, beginning of the period	53,355	46,991	46,991
Effect of translation differences on cash and cash equivalents	1,354	744	1,422
Cash and cash equivalents, end of the period	25,285	25,599	53,355
Supplementary information to the cash flow statement:
- Interest paid during the period	3,153	2,066	3,239
- Interest received during the period	533	390	487
- Taxes paid during the period	901	3,660	6,571

Consolidated statements of changes in equity

(Thousands of Euro)	Share capital	Legal reserve	Share premium	Transla- tion	Cash flow hedge	Stock option	Retained earnings	Net income	Group equity
			reserve	reserve	reserve	reserve
Balance at December 31, 2013	25,921	5,184	37,678	983	(4,670)	1,176	318,906	(29,749)	355,429
Allocation of 2013 result	-	-	-	-	-	-	(29,749)	29,749	-
Recognition of cost stock option plans	-	-	-	-	-	(687)	752	-	65
Net comprehensive result	-	-	-	(1,560)	23,078	-	(391)	(2,941)	18,186
Balance at December 31, 2014	25,921	5,184	37,678	(577)	18,408	489	289,518	(2,941)	373,680
Allocation of 2014 result	-	-	-	-	-	-	(2,941)	2,941	-
Net comprehensive result	-	-	-	(1,209)	(9,404)	-	(13)	17,137	6,511
Balance at Sept. 30, 2015	25,921	5,184	37,678	(1,786)	9,004	489	286,564	17,137	380,191

(Thousands of Euro)	Share capital	Legal reserve	Share premium reserve	Transla- tion reserve	Cash flow hedge reserve	Stock option reserve	Retained earnings	Net income	Group equity
Balance at December 31, 2013	25,921	5,184	37,678	983	(4,670)	1,176	318,906	(29,749)	355,429
Allocation of 2013 result Net comprehensive result	- -	- -	- -	- (857)	- 20,064	- -	(29,749) (213)	29,749 4,510	- 23,504
Balance at Sept. 30, 2014	25,921	5,184	37,678	126	15,394	1,176	288,944	4,510	378,933

Explanatory Notes

The economic/financial results of the Group as at September 30, 2015 and for the periods of comparison were prepared on the basis of Annex 3D to the Issuers' Regulations no. 11971 of May 14, 1999, and subsequent amendments and additions.

The quarterly statement as at September 30, 2015, which is not subject to auditing by the Auditing firm, was prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and the relative standards of interpretation (IFRIC) in force at the time the Statement was drawn up.

The accounting standards and valuation criteria adopted are the same as those used for the preparation of the annual consolidated financial statements.

Statement by the manager responsible for the preparation of the company's financial documents

The manager responsible for preparing the Company's financial reports, Mr. Livio Libralesso, declares, in accordance with paragraph 2 article 154 bis of the Testo Unico della Finanza, that the accounting information contained in this document corresponds to the results documented in the books, accounting and other records of the company.