Giglio.Com — Investor Presentation 2019

Mar 18, 2019

GLOBAL DIGITAL ENABLER FOR FASHION BRANDS

BUSINESS PLAN 2019-2021

15 th March 2019

BUSINESS PLAN 2019-2021

GIGLIO GROUP FASHION DIGITAL ENABLER

• Partner for Fashion Luxury Brand to get a privileged and unlimited access to e-commerce globally;
• B2B and B2C tailor-made services to Fashion Luxury industry:
• From the creation of e-commerce platform to global inventories management;
• 4 Operating Hubs: Milano, Lugano, Shanghai, New York;

2015

Construction of the integrated business model 4.0:

• M&A
• Technological Development

2017 2018

Business consolidation:

• Unique Technological Platform
• Team integration

New businesses:

• Proprietary Marketplace
• T-commerce

FUTURE PRIORITIES

• Main Digital Partner for Brand
• Greater China
• T-commerce

2018

50+ FASHION BRAND

50+ GLOBAL MARKETPLACE

€75mn GMV 2018

100+ COUNTRIES

MISSION SELL THROUGH 100%

HISTORY	GIGLIO GROUP		2014		2016		2018 • Listing on MTA,	STAR segment (on March)
2003 Giglio Group is established and the television channel Music Box is founded		2010 • Play.Me (LCN 68) TV channel starts broadcasting • Dada purchases a further 15% increasing its stake to 25%	• Giglio TV was July, it is the first in China, entirely Italian lifestyle • The 49% of Giglio equally by the Sviluppo Economico Economy and SIMEST • At the end of Group increased Channel to 100%	founded at the end of television channel dedicated to the TV is participated Ministero dello (the Ministry of Development) and November, Giglio its stake in Nautical	Acquisition of (which Fashion), the marketplace worldwide products in of fashion	MF Fashion becomes Giglio new online at a level for the category	• Giglio Group the first dedicated to Furniture" • Launch of • Agreement brands into the	launched Channel "ibox 65", T-commerce channel in Italy made in Italy "Home, Food, T-commerce for fashion with WeChat to bring Italian widest chinese platforms
2008	Dada enters into Giglio Group with a 10% stake Live TV channel is created, a thematic TV channel dedicated to live concerts	20 11 • Acqua (LCN 65) TV channel starts broadcasting • Yacht and Sail TV channel is purchased from the RCS group • Nautical Channel is established: it is distributed in 56 nations and 5 continents and is the only Pay TV television channel in the world, entirely dedicated to sailing and water sports • Buongiorno Spa purchases 100% of Dada		7 August 2015 Listing on AIM Italia. Acquisition of M-Three Satcom, a strategic partner within the distribution of the television signal via satellite and fiber optic signal		2017 Giglio Group purchases 100% of Evolve Service, one of the most important players in the e-commerce industry for fashion, beauty and design		2019 Pure e-commerce player • Giglio Group become a 100% e-commerce company with a global coverage of commercial hubs and logistics. • Sales of Media Asset to Vertice 360 and signing of Strategical Partnership.

(Dmobilelab Spa) including the stake in

Giglio Group

IBOX: THE CONNECTION BETWEEN BRAND AND DIGITAL CONSUMER

• Totally Integrated Model in terms of both distribution channels and Business Model:
• Excellent fertilization among distribution channels;
• 100% Sell-through.

On-season 60/75%

Off-season 40/25%

+INCREMENTAL STOCK SPECIAL PRODUCTION

IBOX DIGITAL B2C

A SUITE OF SERVICES FOR A COMPLETE OUTSOURCING OF ONLINE BRAND MANAGEMENT

• Ibox digital provides e-commerce services to fashion brands: a unique technological platform to manage: monobrand website, marketplace connections, payment systems and logistics;
• Giglio takes a fee for its services, also related to level of sales, without bearing any inventory risk.
• GMV 2016 2018 CAGR +20%
• REVENUES 2016 2018 + 26%

AVERAGE

ORDER VALUE

€330

KEY PARTNER BRAND

IBOX DISTRIBUTION B2B

MANAGE THE BRAND INDIRECT ONLINE SALES TO THE MAIN E-COMMERCE PLATFORM GLOBALLY.

• Ibox platform is connected to the main marketplaces worldwide with a complete integration of payment systems and managing products logistics.

50+ GLOBAL E-COMMERCE PLATFORMS 40+ PARTNER BRAND

300 MLN USERS ON REACHED PLATFORMS

20+ COUNTRIES AND 3 CONTINENTS REACHED

IBOX PLATFORM EXPLOITING CHINA

• Giglio Group developed an important hub with dedicated team in China, allowing brands to rapidly develop at low cost the e-commerce channel.
• Giglio enjoys a unique presence in Chinese media, allowing to strengthen brand awareness through:
• Chinese media (TV, social, marketplace with over 100 millions of daily users)
• Well positioned traditional media;
• iBox Marketplace, with an immediate conversion in product sales.

BRANDS

MARKETPLACE

THIRD-PARTY MARKETPLACE

EXPERIENCE AND KNOW-HOW

To develop local e-commerce channel

ICP LICENSES

Chinese governement authorization to manage websites

LOCAL TEAM

For an optimal management of e-commerce digital activities

BRAND AWARENESS

Through Giglio media network

LOGISTIC HUB

Mainland and Free Trade Zone in Shanghai possibility to have stock without anticipating duties

DIGITAL MARKETING EXPERIENCE

To develop the best positioning and the best marketing plans

IBOX PLATFORM EXPLOITING CHINA

BUSINESS PLAN 2019-2021

PERSONAL LUXURY GLOBAL MARKET

BIG MARKET WITH STABLE GROWTH RATE: €300+bn WITHIN 2020

• Prevailing Family Ownership: The market is characterized by companies owned by families who ensure the brand integrity.
• Fragmented Sector: 19 out of 20 larger global fashion luxury brand have their headquarter in Europe and have their own direct distribution channels, while smaller Brands mainly rely on a network of independent stores. Inventories fragmentation implies inefficiencies and lost business opportunities.

STRONG FASHION E-COMMERCE GROWTH: FROM 9% TO 25% IN 2023

• Social and Digital Marketing: Digital transformation is influencing the relationship between luxury brand and their consumer. As a proof, today digital influencer drives the 70% of consumer decision.
• New Generation: During 2017, Millennials and Z-generation represented the 85% of fashion growth. Young consumers are expected to contribute for 45% of global fashion turnover within 2025 relying on e-commerce as main channel.

30% 25% 22% 17% 21% 13% 12% 13% 9% 25% 6% 7% 2017E 2023F 91% 75% 9% 25% 2017E 2023F Source: Bain & Company

Source: Bain & Company; Data in €bn

ONLINE LUXURY MARKET

OUTSTANDING ONLINE GROWTH: MARKET SHARE OF 9%

• Global Retail market (B2C) reached around €380bn in 2017 and is expected to reach €820bn with a CAGR of more than 13%;
• Online discount sales and home delivery attracted numerous clients. However brand have to innovate their services to maintain the luxury customer experience.
• Technological development, such as safer online transactions and greater customer experience, driven the market growth;

PERSONAL LUXURY ONLINE MARKET €bn

Source: Osservatorio eCommerce B2c 2018 (1)

CINA E-COMMERCE LUXURY MARKET

ASIA TAKING THE LION'S SHARE: CHINA OVER THE AGGREGATE EU-USA

• Asia-Pacific region will be the faster growing market in the next 3 years, followed by MEA. China and India will be the main focus with the objective of penetrating the developing online channel;

FASHION ONLINE MARKET €bn E-COMMERCE VS RETAIL €bn

COMPETITIVE LANDSCAPE

UNIQUE COMPETITIVE POSITIONING

• Giglio Group operates within the fashion e-commerce market, along with companies such as Farfetch, YNAP, Zalando, Showroom Privè (SRP), asos;
• Despite the size, Giglio enjoys a unique positioning being active on all main distribution channels of online and fast growing;
• There is no such competence, global coverage, business model and direction in the market. Unique player.
• For much of the brands now, we see only two options: in-house management or Giglio support.

DISTINCTIVE ADVANTAGES

POSITIONING

• Luxury Segment
• High GMV per Brand
• Total Quality service to brand

BUSINESS MODEL

• Integrated Services
• Brand-Marketplace
• connection

TECNOLOGY

• Innovative
• Proprietary
• Flexible

CHINA PENETRATION

• Widespread Presence
• Brand Awareness support
• Only Certified Media Operator

KNOW-HOW

• Sector
• Products
• Trust Relationship

PEOPLE

• High-level expertise
• Tailor-made support
• Internal engineering team

COMPETITIVE LANDSCAPE

DISTRIBUTION CHANNELS

OWN MARKET	E-STORE MONOBRAND Es. MaxMara.com	SOCIAL Sales through WeChat, Facebook, etc	T-COMMERCE See and Buy	MARKETPLACE Amazon, Zalando, ecc.

BUSINESS PLAN 2019-2021

GROUP STRATEGY

DEVELOPMENT COSTS 2019-2021

Complete platform integration with all digital channels, with particular focus on e-commerce marketplace.

Enlarge the brand portfolio, with particular focus on luxury segment, thanks to the strengthening of commercial activity also through new talent hiring;

ALL BRANDS MADE IN ITALY

100% COVERAGE

€6-7MN

PROJECT CHINA

Expansion on Asian markets, mainly exploiting the Chinese opportunities, thanks to the cross presence in all digital channel and thanks to new agreements with new brands.

THE DIGITAL BRIDGE TO CHINA

STRATEGICAL OBJECTIVES

Leader e-commerce Fashion Made in Italy

Target 2-3% online Sales of Fashion Made in Italy

Partnership and integration with the firsts 50 ecommerce platform all over the world

Main E-commerce partner for Made in Italy Fashion Luxury in China

• TV channel 68 + minor
• 100% of M-Three Satcom
• 100% Nautical Channel
• TV contents and rights in China.

March 2019 - GIGLIO GROUP SIGNED A CONTRACT WITH SPANISH LISTED COMPANY VERTICE 360 AND WITH SQUIRREL CAPITAL FOR THE TRANSFER OF GIGLIO GROUP'S MEDIA AREA TO VERTICE 360, HAVING IN EXCHANGE VERTICE 360'S SHARES RESERVED TO GIGLIO GROUP

ALLIANCE BETWEEN GIGLIO GROUP AND VERTICE 360 FOR THE PROMOTION OF THE SYNERGIES BETWEEN EACH COMPANY'S E-COMMERCE AND MEDIA BUSINESSES

SQUIRREL CAPITAL

Squirrel Capital is the majority shareholder of Vertice 360, with 54.66% of its share capital.

It is the most important advertising and audiovisual group in the Spanish market, with strong coverage in Europe and South America. A digital agency managing exclusively the European budget of TRIVAGO.

VERTICE 360

Vertice 360, listed on Madrid's stock exchange market ever since 2007, operates on two main business lines: production and distribution of international audiovisual contents. It is a fast growing company

KEY GROWTH DRIVER GROUP

• BRANDS BRANDS BRANDS. Enlarge Portfolio and gaining market share
• Cross-Fertilization between Distribution Channels;
• Consolidation in Europe and penetration in China;
• Market Places direct access, the next big thing
• Technology Improvement: Ibox Platform and Tcommerce.

PROFITABILITY EVOLUTION

• Gaining Fast long-term suistanable profitability > 15%
• 2018 EBITDA Margin is influenced by expenses for tech platform development and business development
• 2019 finalization of the Media exit process
• 2020 EBITDA Margin is expected to be around 12%.
• Targeting a lean organization by 2019 end in line with smaller complexity and

NET FINANCIAL POSITION 2018-2021

Data in €mn;

Operating Cash Flow: EBITDA - Taxes + Financial Income/(expenses) Investments: Working Capital + Capex Note: Data in parenthesis represents positive components of NFP.

A TRULY AGILE AND TACTIC COMPANY

INVESTMENTS:

• 4.0 E-commerce Platform Integration and development;
• Working capital to sustain the business turnover increase on the B2B

EXTRAORDINARY OPERATION

• Media Asset Dismissal for €14mn Vertice shares + LCN 65 sale cash in

CAPITAL STRUCTURE OPTIMIZATION

• Increase Average Debt Duration
• Reduce short term facilities

POTENTIAL ADDITIONAL OPTIMIZATION

• Vat Receivables €5-9 mln
• Industrial partner

DISCLAIMER

This document was prepared by Giglio Group mainly for use during meetings with investors and financial analysts. This document does not constitute an offer to sell or a solicitation to buy or subscribe shares and neither this entire document or any portion of it may constitute a basis or provide a reference for any contract or commitment. Some of the information contained in this document may contain projected data or estimates that are based on current expectations and on opinions developed by Giglio Group and are based on current plans, estimates, projections and projects. Consequently, it is recommended that they be viewed as indicative only. Projected data and estimates entail risks and uncertainties. There are a number of factors that could produce significant differences between projected results and actual results. In addition, results may be affected by trends that are often difficult to anticipate, are generally beyond Giglio Group's control and could produce results and developments that are substantially different from those explicitly or implicitly described or computed in the abovementioned projected data and estimates. The non-exhaustive list that follows being provided merely by way of example, these risks include: significant changes in the global business scenario, fluctuations in the prices of certain commodities, changes in the market's competitive conditions and changes in the general regulatory framework. Notice is also given that projected data are valid only on the date they are produced. Except for those cases in which the applicable statutes require otherwise, Giglio Group assumes no obligation to provide updates of the abovementioned estimates and projected data..