Ovs — Investor Presentation 2015

Sep 24, 2015

1H15 FINANCIAL RESULTS

OVS September, 2015

Disclaimer

This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any othother person.

This presentation might contain certain forward-looking statements that reflect the Company's management's current views with reevents and financial and operational performance of the Company and its subsidiaries. These forwardS.p.A.'s current expectations and projections about future events. Because these forwardactual future results or performance may differ materially from those expressed in or implied by these statements due to any factors, many of which are beyond the ability of OVS S.p.A. to control or estimate. You are cautioned not to place undue relilooking statements contained herein, which are made only as of the date of this presentation. looking respect to future forward-looking statements are based on OVS forward-looking statements are subject to risks and uncertainties, number of different reliance on the forward-

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OVS S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forwardcircumstances after the date of this presentation.forward-looking statements to reflect events or

Any reference to past performance or trends or activities of the OVS S.p.A. shall not be taken as a representation or indicatperformance, trends or activities will continue in the future.indication that such

This presentation does not constitute an offer to sell or the solicitation of an offer to buy OVS's securities, nor shall theor be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarOVS. OVS's securities referred to in this document have not been and will not be registered under the U.S. Securities Act of offered or sold in the United States absent registration or an applicable exemption from registration requirements. document form the basis of regarding the securities of 1933 and may not be

Nicola Perin, the Manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, baccounting records.154-bis, paragraph 2, of the books and

This investor presentation contains measures that were not prepared in accordance with IAS/IFRS. 1H15 Highlights

Strong sales growth across all brands and categories, sustained by positive LfL (notwithstanding a very strong 1H14 performance) and network expansion slightly ahead of plan

Increase in sales driven by (i) positive network expansion (+5.5%, mainly driven by DOS with+17 full format OVS) ) LfL (+1.6%) and (ii)

Further market share increase to 6.7% as at June (+30bps vs. Dec 2014 and +20 bps vs. Mar 2015)2015 +7.1%

Increase in Net Sales

+17 OVS Full format DOS

€67.7m EBITDA, €11.5m higher than 1H14profitability increasing to 11.1% driven by higher sales at stable GM%, operating leverage, accretive contribution of franchise sales and continued cost control11.5m (+20.4%), with of sales (+120 bps)

€33.2m PBT, €35.2m higher than from the improved capital structure as a result of the IPO. €20.0m Net result. 1H14, benefitting also

+98 other stores mainly Kids in franchising

+20.4%

EBITDA Growth

Key Income Statement ItemsPositive performance continues in 1H15

		H 5 1 1		H 1 1 4
i K M * t e y e r c s	€ l m n	S % f N l t o e a e s	€ l m n	S % f N l t o e a e s	G h t r o w
S N l t e a e s	6 1 1 1		5 7 0 4		7. 1 %
E B I T D A	6 7 7	1 1. 1 %	5 6 3	9 9 %	2 0 4 %
E B I T	4 0 1	6 6 %	2 8 0	4 9 %	4 3 2 %
P B T	3 3 2	4 % 5	( ) 2 0	( ) 0 4 %	n a
N I t e n c o m e	2 0 0	3 3 %	1 4 8 -	( ) 2 6 %	n a

• • 1H15 Net Sales increased by 7.1% driven by an expanded selling area and positive LfL performance (+1.6% in a still uncertain menvironment and notwithstanding the strong +7.3% LfL recorded in H1 2014); both brands and all the main product categories (emenswear and womenswear) displayed positive growth ratesH15 market (especially
• • EBITDA increased by 20.4% driven by (i) sales growth at constant GM; (ii) operating leverage; (iii) accretive impact of higher contribution of franchise to the sales mix; (iv) further roll-out of cost control initiatives) 35.2m (-€23.1m) as a result of the debt refinancing at IPO
• –EBITDA margin increased by approx. 120bps to 11.1%
• •PBT increased by €35.2m benefitting from operating leverage and lower interest charges (

Sales and EBITDA Performance

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Net Working Capital

€ l m n	J l '1 5 3 1 u y	J l '1 3 1 4 u y	C h a n g e
A R i b l t c c o n s e c e a e u v	6 5 0	5 9 6	5 4
I t n e n o r v y	3 0 1 9	2 8 0 1	2 1 8
A P b l t c c o u n s a y a e	( ) 3 6 6 7	( ) 3 1 4 7	( ) 2 9 5
C N W k i i l t t e o r n g a p a	( ) 0 7	2 0 5	( ) 2 5 7

• • The current working capital structure improved and is coherent with the seasonal trends of the business:
• Accounts receivables grew in connection with the growth of the franchise network (with new openings also requiring an initial investment in merchandise by the franchisees)
• Inventory growth mirrored the sales and store network expansion
• Accounts payables also grew in line with the overall expansion of the business, whilst DPO remained substantially stable

Capex

• • Capex (€33.9m in 1H15) is slightly ahead of consensus for full year as a result of new openings continuing ahead of schedule. The 1H15 capex spending includes:
• new openings (c. 44% of total capex)
• refurbishment and maintenance of the existing network (c. 18%)
• IT and special projects (c.15%) mainly related to operational projects
• automated logistics equipment (c. 14%) to support the replenishment projects (increasing speed, efficiency and capacity)
• Capex for the LED project (c. 9%) entirely managed through vendor financing

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Consolidated Cash Flow Statement

€ l m n	H 5 1 1
E B I T D A	6 7. 7
C C h i N W k i i l t t a n g e n e o r n g a p a	( ) 1 3. 1
C h i h ( l i b i l i i ) t t t a n g e n o e r a s s e s a e s	( ) 1 1. 5
C a p e x	( 3 3. 9 )
i C O h F l t p e r a n g a s o w	9. 2
F i i l E n a n c a x p e n s e s	( ) 1 2. 3
T F R ( E l ' ' l i i d i ) t m p o y e e s e a v n g n e m n y	( ) 1. 6
T a e s x	( 1 9 ) 7.
I P O ( l. b k i i ) t c o s s e c a n c o m m s s o n s x	( ) 3. 4
O ( f f ) I P d b k t p r o c e e s n e o a n e e s	3 4 9. 0
O h t e r	( ) 5. 8
N C h F l ( b f M M d i i d t t t e a s o w e o r e e r v a v e s a n i d ) t t a m o r e c o s s z	3 1 7. 2
C h i M M d i i d i d t t t t a n g e n e r v a v e s a n a m o r z e c o s	( ) 1 2. 0
C C l d N h F l t t u m u a e e a s o w	3 0 5. 2

• Seasonality pattern in line with previous years with most of the net cash is generated in the second half (as typical for our sector)industry

Net Debt and Leverage

€ l m n	3 1 J l '1 5 u y	3 1 J '1 5 a n u a r y
N D b t t e e	3 1 9 2	6 2 4 4
E B I T D A L T M	1 6 8 5	1 5 7 1
L E B I T D A e e r a g e o n v	1 9 x	4 0 x

• • During 2015 leverage declined by 2.1x EBITDA vs. 31 January 2015 mainly due to the proceeds from the IPO. The leverage ratio will further benefit from cash generation of 2H of the year.
• • Residual net debt at the IPO has been entirely refinanced at more favorable interest rates:
• • The average interest rate in 1H15 was 3.71% vs. 5.49% in 1H14
• • The 1H15 still does not reflect in full the benefit of the refinancing (c. only 5 months in the semester experienced lower rates). The current interest rate is 3.00% + Euribor3M (currently close to 0%)

Outlook

• •Revenues expected to grow in line with management plans
• • Network expansion is on track
• +18 stores since 31-Jul-2015, of which 5 full format DOS and 13 franchise "kids" stores
• In early September OVS opened its largest flagship store key shopping route in Milan). The store was a former UPIM which enjoys great commercial visibility and a large spaceThe rationale behind the new opening was:ever, covering an area of 2,800m² in Corso Buenos Aires (a space.
  • To portray a successful, modern, contemporary and international image key players with strong brand image and significant presenceand store design to compete with the global
  • To allow OVS to compete with best-in-class players in terms of merchandising assortment breadth and space allocationclass
• • Selective focus on international expansion in certain markets, both via full format as well as via kids stores
• New agreement signed with a high profile commercial partner in the Middle East in order to open new franchise stores within important shopping malls of the region

Appendix

Consolidated Balance Sheet Statement

€ l m n	J l '1 5 3 1 u y	J '1 5 3 1 a n u a r y	D l t e a
R i b l e c e v a e s	6 5 0	3 0 7	( ) 8 0
I t n e n o r v y	3 0 1 9	2 8 6 7	1 4 2
P b l a a e s y	( ) 3 6 6 7	( ) 3 7 4 4	6 9
N O i W k i C i l t t t e p e r a n g o r n g a p a	( 0 ) 7	( ) 1 3 8	1 3 1
O S f ( ) h h N i i l R i b l P b l t t- t e r o r e r m o n n a n c a e c e v a e s a y a e s -	( ) 5 0 5	( ) 6 9 5	1 9 0
C N W k i i l t t e o r n g a p a	( ) 5 1 2	( ) 8 3 3	3 2 1
N A t t e s s e s	1 3 4 9 5 ,	1 3 4 3 9 ,	5 5
N D f d T t e e e r r e a e s x	( ) 1 6 2 5	( ) 1 6 8 5	6 0
O S f ( ) h h N i i l R i b l P b l t t- t e r o r e r m o n n a n c a e c e v a e s a y a e s -	( ) 4 7	( ) 9 5	1 3
S O I d i P i i d h P i i t t e v e r a n c e n e m n y r o v s o n a n e r r o v s o n s	( ) 4 9 9	( ) 3 8 5	4 0
C N I d i l t t t e n v e s e a p a	1 0 8 1 2 ,	1 0 3 2 4 ,	4 8 8
E i t q u y	6 2 0 7	4 0 8 0	3 4 2 5
N D b t t e e	3 1 9 2	6 2 4 4	( ) 3 0 5 2
S f i T l F d t o a o u r c e o u n n g	1 0 8 1 2 ,	1 0 3 2 4 ,	4 8 8

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