Safilo Group — Investor Presentation 2017

Nov 8, 2017

Q3 and 9M 2017 Trading Update

1

This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and facts, most of which being beyond the control of the Group. Therefore actual results could differ, even to a significant extent, with respect to those reported in the statements.

Q3 AND 9M 2017 KEY PERFORMANCE INDICATORS

NET SALES AND ADJ. ¹ ECONOMIC PERFORMANCE REFLECTED:

• IMPACT OF THE EXIT OF THE GUCCI LICENSE AND ITS REPLACEMENT WITH THE STRATEGIC PRODUCT PARTNERSHIP AGREEMENT
• Q3 CONFIRMS NORMALIZATION OF OPERATIONS AND DELIVERY PERFORMANCE IN THE PADUA DC
• Q3 PERFORMANCE OF THE GOING FORWARD BRANDS* DRIVEN BY:
• Positive momentum of Own Core Brands in all regions and across all brands
• Strong progress of Emerging markets, incl. growth turnaround in Asia
• North America: Wholesale stabilizing after Q2, Retail comp sales almost stable
• Western Europe declining, affected by soft order taking, carry forward from H1 delivery issues, and tough comps on Dior.

* THE GOING FORWARD BRAND SALES DO NOT INCLUDE THE GUCCI BUSINESS

in millions of Euro and % change vs same periods of 2016

² 2017 - Focused on our long-term journey for sustainable growth

	9M 2017: -15.0% @ CFX (-15.1% Wholesale)
NORTH AMERICA Total -16.0% Wholesale -16.4%	EUROPE -7.3%	ASIA -48.7%	ROW -10.0%
	Q3 2017: -12.3% @ CFX (-12.5% Wholesale)
NORTH AMERICA Total -13.7% Wholesale -14.5%	EUROPE -5.9%	ASIA -43.7%		ROW +8.0%

2017 - Focused on our long-term journey for sustainable growth

NET SALES PERFORMANCE OF GOING FORWARD BRANDS*

9M 2017: -4.0% @ CFX (-3.5% Wholesale)

NORTH AMERICA Total -2.8%	EUROPE	ASIA	ROW
Wholesale -1.4%	-6.1%	-8.7%	+6.6%

Q3 2017: +1.3% @ CFX (+1.6% Wholesale)

NORTH AMERICA Total -0.1% Wholesale +0.4%	EUROPE -4.2%	ASIA +9.3%	ROW +28.2%
Improved momentum in the independent • retail opticial channel • Good growth by Own Core Brands and core licenses like Kate Spade, Tommy and Boss • Market environment remained challenging, Retail also affected by severe weather conditions in several states	• Soft order taking and tough comps on Dior affecting Western Europe Positive performance of Central & • Eastern Europe and good progress by Own Core Brands, Carrera and Smith in particular	• Positive trends recorded in almost all the markets of the area, led by China • Positive development of Own Core Brands, led by Polaroid and growth of the licensed brands portfolio	Surge of Own Core Brands and • strong growth of the licensed portfolio. India biggest IMEA market following new development plan

* GOING FORWARD BRAND SALES DO NOT INCLUDE THE GUCCI BUSINESS

2017 - Focused on our long-term journey for sustainable growth

GROSS MARGIN PERFORMANCE

in millions of Euro and % on total net sales

2017 - Focused on our long-term journey for sustainable growth

ADJ.¹ EBITDA PERFORMANCE

In millions of Euro and % on total net sales

KEY DRIVERS

• SPPA plus pro-rata accounting compensation fully compensating the lost profit/margin of the Gucci license
• Q3 Adj. ¹ EBITDA margin in line with last year excl. FX effect, reflecting cost saving initiatives and overheads productivity plan
• 9M Adj. ¹ EBITDA Margin impacted by subdued operating leverage in Q1 following weak sales order fulfilment -30 bps

2017 - Focused on our long-term journey for sustainable growth

GROUP NET DEBT

in millions of Euro

2017 - Focused on our long-term journey for sustainable growth

PROGRESS ON OUR STRATEGIC CHOICES

1) Our go-to-market actions for Quality of Sales

2) Our multi-segment brand Portfolio Balance

3) Our focus on Innovation

OUR MULTI-SEGMENT BRAND PORTFOLIO BALANCE

✓ New 7 year licensing agreement with REBECCA MINKOFF

Rebecca Minkoff is an exciting further addition to our brand portfolio. It is the largest global brand led by a millennial female designer and one of the fastest growing in the contemporary segment. The brand's unique relevance among tech and fashion forward modern women, and digital born millennials, offers Safilo interesting business growth and learning opportunities.

OUR MULTI-SEGMENT BRAND PORTFOLIO BALANCE

✓ Strong reception of our new MOSCHINO and …

… RAG & BONE collections. Coming soon!!!

OUR COMMITMENT TO INNOVATION

✓ SMITH LOWDOWN FOCUS smart glasses now available for sale ON SMITHOPTICS.COM

✓ Continued investments in the CEE region

OPENING OF BELARUS AND KAZAKHSTAN, two markets of particular interest in the context of the Group's Central and Eastern Europe (CEE) high growth region

✓ Expand our Global Partner Network of worldwide distributors

EXCLUSIVE DISTRIBUTION PARTNERSHIPS IN CHILE AND IN COLOMBIA, further

important steps in Safilo's development of Latin America that is part of the growth acceleration plan for its Emerging Markets

AMONG THE MOST LOVED AND EDITORIALLY FEATURED EYEWEAR WORLDWIDE

• Our collections continue to enjoy excellent market reception. Our Own Core Brands are among the most well received product collections and iconic designs of the Fall-Winter 2017 season

2017 - Focused on our long-term journey for sustainable growth

Appendices

in millions of Euro and % on net sales

	9M 2017	%	9M 2016	%	Change %	Q3 2017	%	Q3 2016	%	Change %
sales Net	797 7	100 0	939 1	100 0	-15 1%	245 1	100 0	288 0	100 0	-14 9%
Gross profit	407 6	51 1	564 0	60 1	-27 7%	120 4	49 1	169 4	58 8	-28 9%
EBITDA	38 8	4 9	71 0	7 6	-45 3%	14 7	6 0	18 8	6 5	-21 9%
Adjusted1 EBITDA	43 2	5 4	77 4	8 2	-44 2%	15 4	6 3	19 1	6 6	-19 6%

Adjusted¹ EBITDA

¹ 9M 2017 adjusted EBITDA excludes non-recurring costs of Euro 4.4 million, mainly related to the reorganization of the Ormoz plant in Slovenia and other overhead cost saving initiatives. 9M 2017 adjusted EBITDA includes income of Euro 32.3 million as a pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 43 million for the full year 2017. Q3 2017 adjusted EBITDA excludes non-recurring costs of Euro 0.7 million related to overhead cost saving initiatives and includes income of Euro 10.8 million as a pro-rata portion of the accounting compensation for the early termination of the Gucci license.

9M 2016 adjusted EBITDA excluded non-recurring costs for Euro 6.4 million of which Euro 5.2 million related to overhead cost saving initiatives, such as for example the planned integration of Vale of Leven (Scotland) Polaroid lens production into Safilo's China based corporate supply network, and Euro 1.2 million related to commercial restructuring costs in the EMEA region.

Net sales performance

in millions of Euro

Net sales by geographical area	9M 2017	%	9M 2016	%	Change %	Change % (*)	Change % (**)
Europe	367.7	46.1	399.1	42.5	-7.9%	-7.3%	-6.1%
North America	325.3	40.8	386.3	41.1	-15.8%	-16.0%	-2.8%
Asia Pacific	45.6	5.7	90.1	9.6	-49.4%	-48.7%	-8.7%
Rest of the world	59.1	7.4	63.5	6.8	-7.0%	-10.0%	6.6%
Total	797.7	100.0	939.1	100.0	-15.1%	-15.0%	-4.0%
sales by distribution channel Net	9M 2017	%	9M 2016	%	Change %	Change % (*)	Change % (**)
Wholesale	747.8	93.7	881.4	93.9	-15.2%	-15.1%	-3.5%
Retail	49.9	6.3	57.7	6.1	-13.5%	-13.7%	-10.4%
Total	797.7	100.0	939.1	100.0	-15.1%	-15.0%	-4.0%
sales by geographical Net area	Q3 2017	%	Q3 2016	%	Change %	Change % (*)	Change % (**)
Europe	100.5	41.0	107.6	37.4	-6.6%	-5.9%	-4.2%
North America	103.5	42.2	126.5	43.9	-18.2%	-13.7%	-0.1%
Pacific Asia	16.7	6.8	31.3	10.9	-46.7%	-43.7%	9.3%
Rest of the world	24.4	10.0	22.6	7.8	8.4%	8.0%	28.2%
Total	245.1	100.0	288.0	100.0	-14.9%	-12.3%	1.3%
sales by distribution channel Net	Q3 2017	%	Q3 2016	%	Change %	Change % (*)	Change % (**)
Wholesale	228.8	93.3	268.9	93.4	-14.9%	-12.5%	1.6%
Retail	16.4	6.7	19.0	6.6	-14.0%	-9.3%	-2.5%
Total	245.1	100.0	288.0	100.0	-14.9%	-12.3%	1.3%

(*) Sales perfomance at constant exchange rates

(**) Sales performance at constant exchange rates of the Going Forward Brands Portfolio, excluding Gucci business

Exchange Rates

		As of		(Appreciation)/ Depreciation	Avgerage for		(Appreciation)/ Depreciation
		September 30,	December 31,		September 30,	September 30,
Currency	Code	2017	2016	%	2017	2016	%
US Dollar	USD	1.1806	1.0541	12.0%	1.1140	1.1161	-0.2%
Hong-Kong Dollar	HKD	9.2214	8.1751	12.8%	8.6771	8.6649	0.1%
Swiss Franc	CHF	1.1457	1.0739	6.7%	1.0951	1.0935	0.1%
Canadian Dollar	CAD	1.4687	1.4188	3.5%	1.4546	1.4746	-1.4%
Japanese Yen	YEN	132.8200	123.4000	7.6%	124.6813	120.9359	3.1%
British Pound	GBP	0.8818	0.8562	3.0%	0.8732	0.8031	8.7%
Swedish Krown	SEK	9.6490	9.5525	1.0%	9.5833	9.3737	2.2%
Australian Dollar	AUD	1.5075	1.4596	3.3%	1.4539	1.5046	-3.4%
South-African Rand	ZAR	15.9440	14.4570	10.3%	14.7055	16.6796	-11.8%
Russian Ruble	RUB	68.2519	64.3000	6.1%	64.9992	76.1890	-14.7%
Brasilian Real	BRL	3.7635	3.4305	9.7%	3.5352	3.9561	-10.6%
Indian Rupee	INR	77.0690	71.5935	7.6%	72.6449	74.9108	-3.0%
Singapore Dollar	SGD	1.6031	1.5234	5.2%	1.5470	1.5296	1.1%
Malaysian Ringgit	MYR	4.9827	4.7287	5.4%	4.8377	4.5568	6.2%
Chinese Renminbi	CNY	7.8534	7.3202	7.3%	7.5766	7.3462	3.1%
Korean Won	KRW	1,351.8300	1,269.3600	6.5%	1,268.1068	1,295.4828	-2.1%
Mexican Peso	MXN	21.4614	21.7719	-1.4%	21.0082	20.4291	2.8%
Turkish Lira	TRY	4.2013	3.7072	13.3%	4.00314	3.27602	22.2%
Dirham United Emirates	AED	4.3358	3.869601	12.0%	4.08964	4.097	-0.2%

Brand Portfolio

*Polaroid	$\sum_{i \in \mathcal{I}}$	BOSS		havaianas®
CARRERA	DIOR HOMME	MARC JACOBS	GIVENCHY PARIS	BANANA REPUBLIC
EAR SINCE 1956		ELIE SAAB	MOSCHINO*	rag & bone* NEW YORK
SMITH	CÉLINE	kate spade	$LOWE$ $*$ MOSCHINO	Juicy Couture BLACK LABEL
	FENDI	NEW YORK FOSSIL	BROWN BOBBI	los angeles
OXYDO				Liz claiborne
	MaxMara	TOMMY HILFIGER	MAX&Co	Faks Fifth Fvenue
SAFILO	JIMMY CHOO	swatch the oo eyes	pierre cardin PARIS	JACK SPADE

* From 2018