Safilo Group — Investor Presentation 2019

May 9, 2019

Q1 2019 TRADING UPDATE

May 9, 2019

DISCLAIMER

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.

DURING 2019:

• Group's comments are provided on Continuing Operations, excluding Solstice retail operations now held for sale
• Key economic and financial indicators are commented on a pre-IFRS 16 basis in order to allow proper comparison with the previous periods

Moderate growth of Net Sales from Continuing Operations to Euro 247.3 million

• +3.4% vs Q1 2018
  • +2.8% Forex impact mainly from USD appreciation
  • +0.8% revenues of wholesale business1 reflecting:
    • gradual improvement of core European markets and stabilization of North America, supported by progress in customer service. Emerging markets mixed
    • Polaroid, Smith, Kate Spade and Dior key drivers
    • positive momentum in prescription frames and e-commerce business
  • -0.2% product supply business

Q1 2019 BUSINESS AND ECONOMIC HIGHLIGHTS

Significant operational improvement of adjusted 2 EBITDA from Continuing Operations to Euro 16.5 million, 6.7% of sales

+2.4% vs Q1 2018:

• Improvement of Gross profit and margin up 200 bps following product supply efficiencies and healthier stock management
• Ongoing progress on overheads cost savings program benefitting operational leverage
• Q1 2019 operational improvements fully recovered last year Euro 9.8 million compensation for early termination of Gucci license

Q1 2019 FINANCIAL HIGHLIGHTS

Improvement of total Group Net Debt to Euro 26.4 million

• -19.7% vs FY 2018:
  • Euro 17.7 million remaining proceeds of the share capital increase, received on January 2, 2019
  • Improved economic performance and lower seasonal cash absorption from net working capital

Q1 2019 NET SALES PERFORMANCE BY GEOGRAPHY

Europe off to a positive start, at Euro 124.6 million

+0.8% vs Q1 2018

• -0.5% Forex effect
• Continuing positive trends in the Italian market, driven by fashion luxury, Polaroid, Hugo Boss, Tommy Hilfiger, Max Mara and havaianas
• Sequential business improvement in North Europe mainly behind key accounts

Q1 2019 NET SALES PERFORMANCE BY GEOGRAPHY

North America wholesale Continuing Operations stabilizing, at Euro 88.9 million

+7.1% vs Q1 2018

• +7.7% Forex effect
• Progress on customer service and renewed commercial model starting to build momentum, despite persisting softness of 3Os business
• Key positive performers: Smith, underpinned by continuing positive momentum of its e-commerce business, Kate Spade and Tommy Hilfiger

Asia Pacific recovering momentum, at Euro 17.7 million

• +23.8% vs Q1 2018
  • +6.4% Forex effect
  • Strong travel retail business in South Korea and Greater China
  • Fashion luxury, Max Mara, Tommy Hilfiger best performers. Smith growing in Australia

% c ha s Q 1 2 01 8 ng e v
Q 1 2 0 1 9 % F X 1 7. 4 @ c +
F Y 8 2 0 1 % 2. 1 F X @ c +

Q1 2019 NET SALES PERFORMANCE BY GEOGRAPHY

Rest of world still to be turned around, at Euro 16.1 million

• -11.8% vs Q1 2018
  • +0.2% Forex effect
  • Subdued business in the IMEA markets, still to be reinforced after the recent change in commercial leadership
  • Positive trends in Latin America key chains

	% c ha s Q 1 2 01 8 ng e v
6. 5 %	Q 1 2 0 1 9 1 2. 0 % F X @ c -
	F Y 2 0 1 8 8. % F X 6 @ c -

• The Group elected to implement IFRS 16, applying the modified retrospective approach, whereby the cumulative effect of adopting the standard has been recognized at its relevant effective date on January 1st 2019, without the restatement of 2018 comparative information;
• IFRS 16 has a significant impact on the Group's consolidated balance sheet side due to the right of use assets and lease liabilities that are now recognized for contracts in which the Group is a lessee;
• In the consolidated statement of income the majority of the current operating rental costs is now presented as depreciation of right to use assets and interest expenses on the lease liabilities, with a significant positive impact in terms of EBITDA and a minor effect on EBIT and net income.

( in mil lion s) Eu ro	C O G O P R A O S N T I N U I N E T I N	D S C O D O P R A O S I N T I N U E E T I N ( S O L S T I C E R E T A I L B U S I N E S S )	O A T T L
S im Q 2 0 9 In 1 1 ta te t t o co me me n p ac n
( ) Re du ion f o ing l e d d i ion l E B I T D A t t ta t c o p er a re n xp en se s a a	3. 4	2. 9	6. 4
Inc in de ia ion t re as e p re c e xp en se s	( ) 3. 4	( ) 2. 7	( ) 6. 1
in in Inc te t e re as e re s xp en se s	( ) 0. 3	( ) 0. 3	( ) 0. 7
Re du io f n l t t r t c n o e es u	( ) 0. 2	( ) 0. 2	( ) 0. 4
in ia l Po i io im h 3 1, 2 0 1 9 Ne t F t t a t Ma an c s n p ac s a rc
Inc f lea l ia b i l i ies t re as e o se	( ) 3 8. 5	( ) 4 0. 9	( ) 7 9. 3

IFRS 16 impact on Q1 2019

GROSS PROFIT PERFORMANCE

in millions of Euro and % on total net sales

Operations at COGS level showed positive performance thanks to plant efficiency programs as per 2020 plan

+200 bps vs Q1 2018:

• Plant efficiencies supported by manufactured volumes
• Favourable mix effect
• Lower obsolescence costs

ADJUSTED2 EBITDA PERFORMANCE

in millions of Euro and % on total net sales

Operations at Opex level show progress on overheads saving program as per 2020 plan, supporting the overall adjusted2 EBITDA recovery

• +200 bps Opex improvement vs Q1 2018:
  • ca 3-4 million for overheads cost savings
  • higher marketing investments in own core brands
• -9.8 million in Other Incomes vs Q1 2018:
  • from 2019 no accounting compensation for the early termination of the Gucci license

AMONG THE MOST FEATURED EYEWEAR WORLDWIDE

Appendices

1 The wholesale business excludes the business of the production agreement with Kering, reported within the geographical area of Europe.

2 In Q1 2019, the adjusted EBITDA excludes non-recurring costs for Euro 1.1 million, due to restructuring expenses related to the ongoing cost saving program.

In Q1 2018, the adjusted EBITDA excluded non-recurring costs for Euro 1.7 million, mainly related to the CEO succession plan, and it included an income of Euro 9.8 million, as pro-rata portion of the accounting compensation for the early termination of the Gucci license, equal to Euro 39 million for the full year 2018.

( ) Eu in i l l ion ro m s	Q 2 0 9 1 1	%	Q 2 0 8 1 1	h C % a n	% C h a n g e d t r e p o r e	h % C g a n e Fo t t t a c o ns a n re x
Eu ro p e	2 1 4. 6	% 5 0. 4	2 3. 1 5	% 5 1. 7 1. 0	8 % 0. +	1. 3 % +
h A ic N t o r m e r a	8 8. 9	3 6. 0 %	8 3. 0	3 4. 7 % 5. 9	% 7. 1 +	0 6 % -
f A ia Pa i ic s c	1 7. 7	7. 2 %	1 4. 3	6. 0 % 3. 4	% 2 3. 8 +	1 7 4 % +
he l d Re f t t s o w o r	1 6. 1	% 6. 5	1 8. 2	% -2 2 7. 6	1 1. 8 % -	2 0 % 1 -
To l t a	2 4 7 3	1 0 0. 0 %	2 3 9 1	1 0 0. 0 % 8. 2	3. % 4 +	0 6 % +

( ) Eu in mi llio ro ns	Q 1 2 0 1 9 d t r e p o r e	Q 1 2 0 1 9 R S 1 6 I F p r e-	Q 1 2 0 1 8	% C h g a n e R S 1 6 I F p r e-
les Ne t s a	2 4 7. 3	2 4 7. 3	2 3 9. 1	3. 4 % +
Gr f i t os s p ro	1 3 0. 2	1 3 0. 2	1 2 1. 3	% 7. 4 +
% le t s on n e a s	% 5 2. 7	% 5 2. 7	% 5 0. 7
E B I T D A	1 8. 9	1 5. 4	1 4. 5	6. 6 % +
% t s le on n e a s	7. 6 %	6. 2 %	6. 1 %
2 d j d A E B I T D A te us	2 0. 0	1 6. 5	1 6. 1	% 2. 4 +
% le t s on n e a s	% 8. 1	% 6. 7	% 6. 8

Solstice retail business

( ) Eu in i l l ion ro m s	Q 1 2 0 1 9 d t r e p o r e	Q 1 2 0 1 9 S I F R 1 6 p r e-	Q 1 2 0 1 8	h % C a n g e S I F R 1 6 p r e-	h % C a n g e t t t F a c o n s a n o r e x
N l t e s a e s	1 0. 9	1 0. 9	1 1. 8	% 7. 8 -	% 1 4. 8 -
G f i t ro s s p ro % l t o n n e s a e s	5. 6 5 1. 2 %	5. 6 5 1. 2 %	6. 2 5 2. 6 %	1 0. 3 % -
B D A E I T % l t o n n e s a e s	( ) 0. 6 ( ) 5. 3 %	( ) 3. 5 ( ) 3 2. 3 %	( ) 3. 1 ( ) 2 6. 1 %	1 4. 2 % +

Economic highlights of the Continuing and Discontinued operations

( ) Eu in mi llio ro ns	Q 2 0 9 1 1 d t r e p o r e	Q 2 0 9 1 1 I F R S 1 6 p r e-	Q 2 0 8 1 1	% C h a n g e I F R S 1 6 p r e-	% C h a n g e F t t t a c o n s a n o r e x
les Ne t s a	2 5 8. 1	2 5 8. 1	2 5 0. 9	% 2. 9 +	% -0 1
Gr f i t os s p ro	1 3 5. 8	1 3 5. 8	1 2 7. 5	6. 5 % +
% le t s on n e a s	2. % 5 6	2. % 5 6	8 % 5 0.
E B I T D A	1 8. 3	1 1. 9	1 1. 4	4. 6 % +
% le t s on n e a s	% 7. 1	% 4. 6	% 4. 5
2 A d j d E B I T D A te us	1 9. 4	1 3. 0	1 3. 1	% -0 4
% le t s on n e a s	% 7. 5	% 5. 0	% 5. 2

Exchange Rates

			As f o			Av fo er ag e r
Cu rr en cy	Co de	Ma h 3 1, 2 0 1 9 rc	De be 3 1, 2 0 1 8 ce m r	( Ap ia io ) / t p re c n ia io % De t p re c n	Ma h 3 1, 2 0 1 9 rc	Ma h 3 1, 2 0 1 8 rc	( Ap ia io ) / t p re c n ia io % De t p re c n
U S Do l lar	U S D	1. 1 2 3 5	1. 1 4 5 0	-1 9 %	1. 1 3 5 8	1. 2 2 9 2	-7 6 %
Ho -K Do l lar ng on g	H K D	8. 8 1 9 5	8. 9 6 7 5	% -1 7	8. 9 1 1 6	9. 6 2 1 6	% -7 4
Sw iss Fr an c	C H F	1. 1 1 8 1	1. 1 2 6 9	-0 8 %	1. 1 3 2 4	1. 1 6 5 3	-2 8 %
Ca d ian l lar Do na	C A D	1. 5 0 0 0	1. 5 6 0 5	% -3 9	1. 5 1 0 2	1. 5 5 4 0	% -2 8
Ja Ye p an es e n	Y E N	1 2 4. 4 5 0 0	1 2 5. 8 5 0 0	-1 1 %	1 2 5. 0 8 3 5	1 3 3. 1 6 6 2	-6 1 %
i is h d Br t Po un	G B P	0. 8 5 8 3	0. 8 9 4 5	% -4 1	0. 8 7 2 5	0. 8 8 3 4	% -1 2
Sw d is h Kr e ow n	S E K	1 0. 3 9 8 0	1 0. 2 5 4 8	1. 4 %	1 0. 4 1 8 7	9. 9 7 1 2	4. 5 %
l ian l lar Au tra Do s	A U D	1. 5 8 2 1	1. 6 2 2 0	% -2 5	1. 5 9 4 4	1. 5 6 3 2	% 2. 0
So h- A fr ica Ra d t n n u	Z A R	1 6. 2 6 4 2	1 6. 4 5 9 4	-1 2 %	1 5. 9 2 0 6	1 4. 7 1 0 2	8. 2 %
ian b le Ru Ru ss	R U B	7 2. 8 5 6 4	7 9. 7 1 5 3	% -8 6	7 4. 9 0 9 4	6 9. 9 2 9 1	% 7. 1
Br i l ian Re l as a	B R L	4. 3 8 6 5	4. 4 4 4 0	-1 3 %	4. 2 7 7 5	3. 9 8 8 7	7. 2 %
In d ian Ru p ee	I N R	7 7. 7 1 9 0	7 9. 7 2 9 8	-2 5 %	8 0. 0 7 2 0	7 9. 1 2 6 4	1. 2 %
S ing Do l lar ap or e	S G D	1. 5 2 1 4	1. 5 5 9 1	-2 4 %	1. 5 3 8 8	1. 6 2 1 0	-5 1 %
Ma lay ian R ing i t s g	M Y R	4. 5 8 3 8	4. 7 3 1 7	-3 1 %	4. 6 4 6 6	4. 8 2 3 9	-3 7 %
C h ine Re in b i se nm	C N Y	7. 5 3 9 7	7. 8 7 5 1	-4 3 %	7. 6 6 3 5	7. 8 1 5 4	-1 9 %
Ko W re an on	K R W	1, 2 7 6. 4 6 0 0	1, 2 7 7. 9 3 0 0	-0 1 %	1, 2 7 8. 5 9 4 9	1, 3 1 7. 6 4 5 6	-3 0 %
Me ica Pe x n so	M X N	2 9 0 1. 6 1	2 2. 9 2 4 1	-3 % 6	2 8 0 1. 5 7	2 3. 0 3 2 7	3 % -5
Tu k is h L ira r	T R Y	6. 3 4 4 6	6. 0 5 8 8	4. 7 %	6. 1 1 0 1 8	4. 6 8 9 9	3 0. 3 %
D ir ha Un i d Em ira te te m s	A E D	2 4. 1 6 1	2 0 4. 5	9 % -1	2 4. 1 7 1 1	2 9 4. 5 1 4	% -7 6

* From 2020