Salvatore Ferragamo — Audit Report / Information 2015

Mar 17, 2016

This presentation contains forward-looking statements regarding future events and results of the Company that are based on the current expectations, projections and assumptions of the management of the Company.

The actual results may differ materially from those expressed in any forward-looking statement and the Company does not assume any liability with respect thereto.

This document has been prepared solely for this presentation and does not constitute any offer or invitation to sell or any solicitation to purchase any share in the Company.

The Manager in Charge of preparing the Company financial reports hereby certifies pursuant to paragraph 2 of art. 154-bis of Legislative Decree no. 58 of February 24, 1998, that the accounting disclosures of this document are consistent with the accounting documents, ledgers and entries.

FY 2015 Market Scenario

• Geopolitical tensions continue worldwide with market conditions remaining volatile
• China domestic market penalized by economical slowdown and increasing outbound travelers buying abroad (increasingly in Japan and Korea), while demand in Hong Kong and Macao showing no sign of improvement
• Europe positively impacted by increasing tourist flows, taking advantage of the weak Euro, but penalized by the dramatic events in Paris and by the Russian clientele still missing
• Improving economy in the US, but tourism penalized by a strong Dollar
• Japanese consumers confidence improving and domestic sales positively increasing, with Chinese travel flows boosting performance
• Luxury demand growing double-digit in Mexico, Australia and Canada
• Travel Retail channel remains key: worldwide airport trafficup 6.5% in FY 2015 and 2016 expected to be another strong year (January 2016 accelerating to +7.1% vs. +5.4% in December 2015)

FY 2015 Salvatore Ferragamo Key Facts (1/2)

• Top-line up 7.4% in FY 2015 to 1,430 million Euros
• RTL growing by 7.1%, with L-f-L down 2.7%
• WHL up 7.3% also thanks to the good performance of the Travel Retail Channel
• Europe up 7.3% with overperformace of RTL
• North America up 9.5% and Latam continuing the solid trend (+12.0%)
• APAC up 4.0%, with RTL in Mainland China +10%, performance in Hong Kong and Macao remaining negative, while the rest of the region showing positive trends
• Japan up 14.2% mainly thanks to Chinese travellers

Salvatore Ferragamo SS16 Advertising Campaign

FY 2015 Salvatore Ferragamo Key Facts (2/2)

• Leather goods overperforming in line with strategy (+12.1%)
• Gross Profit up by 11.7% (despite 51 million Euros negative hedging), with incidence on Revenues up 260 basis points to 66.3%
• EBITDA increasing 10.7%, with incidence on Revenues of 22.7% from 22.0% in FY 2014
• Group Net Profit reaching 173 million Euros, up 10.3% vs. FY 2014
• Net Debt down to 10 million Euros (from 49 million Euros at 31 December 2014)
• Net Operating Cash Flow of 197 million Euros (+39% vs. FY 2014)

Salvatore Ferragamo SS16 Advertising Campaign

	December YTD
	% Const	Weight on Weight on
(Euro MM)	2015 2014 % FX	Tot 2015 Tot 2014
Europe	380,6 354,8 7,3% 6,0%	26,6% 26,6%
North America	333,8 304,8 9,5% -1,6%	23,3% 22,9%
Japan	127,3 111,5 14,2% 15,0%	8,9% 8,4%
Asia Pacific	516,0 496,0 4,0% -3,2%	36,1% 37,2%
Latin America	72,4 64,7 12,0% 9,1%	5,1% 4,9%
Total	1.430,0 1.331,8 7,4% 1,4%	100,0% 100,0%

		December	YTD
				%	Weight on	Weight on
(Euro MM)	2015	2014	%	Const FX	Tot 2015	Tot 2014
Retail	892,0	833,1	7,1%	1,3%	62,4%	62,6%
Wholesale	513,6	478,4	7,3%	1,3%	35,9%	35,9%
Licences & Other Rev.	11,5	9,4	23,1%	23,1%	0,8%	0,7%
Rental income	12,9	10,9	17,9%	-1,5%	0,9%	0,8%
Total	1.430,0	1.331,8	7,4%	1,4%	100,0%	100,0%

		December YTD
			% Const	Weight on	Weight
(Euro MM)	2015	2014	% FX	Tot 2015	Tot 2014
Shoes	600,8	568,4 5,7%	-0,9%		42,0%
Leather goods & handbags	528,8	471,6 12,1%	6,4%		37,0%
RTW	93,0	97,2 -4,4%	-8,4%		6,5%
Silk & other access.	95,4	90,1 5,9%	1,3%		6,7%
Fragrances	87,7	84,2 4,1%	-1,8%		6,1%
Licences & Other Rev.	11,5	9,4 23,1%	23,1%		0,8%
Rental income	12,9	10,9 17,9%	-1,5%		0,9%
Total	1.430,0	1.331,8 7,4%	1,4%		100,0%

FY 2015 P&L

			December	YTD
(Euro MM)	2015	%	2014	%	%
Total revenue	1.430,0	100,0%	1.331,8	100,0%	7,4%
Cost of goods sold	(482,0)	-33,7%	(483,4)	-36,3%	-0,3%
Gross profit	948,1	66,3%	848,4	63,7%	11,7%
Payroll	(194,9)	-13,6%	(173,9)	-13,1%	12,1%
Rental	(203,0)	-14,2%	(173,2)	-13,0%	17,2%
Communication	(67,8)	-4,7%	(63,4)	-4,8%	6,9%
Consultancy	(29,3)	-2,1%	(27,4)	-2,1%	7,0%
Other Costs	(129,5)	-9,1%	(118,2)	-8,9%	9,6%
Depreciation	(59,0)	-4,1%	(46,8)	-3,5%	25,9%
Total operating costs	(683,5)	-47,8%	(603,0)	-45,3%	13,3%
EBIT	264,6	18,5%	245,4	18,4%	7,8%
Financial income (expenses)	(13,2)	-0,9%	(7,4)	-0,6%	77,7%
EBT	251,4	17,6%	238,0	17,9%	5,6%
Taxes	(76,9)	-5,4%	(74,5)	-5,6%	3,3%
Net income	174,5	12,2%	163,5	12,3%	6,7%
Group net income	172,7	12,1%	156,6	11,8%	10,3%
Income to minorities	1,7	0,1%	6,9	0,5%	-75,3%
EBITDA	324,3	22,7%	292,9	22,0%	10,7%

4Q 2015 P&L

(Euro MM)	2015	%	4Q 2014	%	%
Total revenue	409,0	100,0%	375,2	100,0%	9,0%
Cost of goods sold	(133,0)	-32,5%	(130,2)	-34,7%	2,1%
Gross profit	276,0	67,5%	245,0	65,3%	12,6%
Payroll	(50,5)	-12,4%	(46,7)	-12,5%	8,2%
Rental	(53,7)	-13,1%	(48,6)	-13,0%	10,4%
Communication	(20,6)	-5,0%	(17,7)	-4,7%	16,6%
Consultancy	(10,0)	-2,4%	(9,0)	-2,4%	10,5%
Other Costs	(34,6)	-8,5%	(33,4)	-8,9%	3,8%
Depreciation	(15,6)	-3,8%	(12,9)	-3,4%	20,2%
Total operating costs	(185,0)	-45,2%	(168,4)	-44,9%	9,9%
EBIT	91,0	22,2%	76,6	20,4%	18,7%
Financial income (expenses)	(4,0)	-1,0%	(3,3)	-0,9%	21,6%
EBT	87,0	21,3%	73,4	19,5%	18,6%
Taxes	(26,0)	-6,4%	(23,7)	-6,3%	9,9%
Net income	61,0	14,9%	49,7	13,2%	22,8%
Group net income	60,5	14,8%	47,1	12,5%	28,5%
Income to minorities	0,5	0,1%	2,6	0,7%	-79,6%
EBITDA	106,7	26,1%	89,8	23,9%	18,9%

FY 2015 Balance Sheet

(Euro MM)	Dec 15 YTD	Dec 14 YTD	%
Tangible assets	243,921	219,092	11,3%
Intangible assets	33,596	29,221	15,0%
Financial assets
Fixed assets	277,518	248,312	11,8%
Inventory	351,132	338,555	3,7%
Trade receivables	167,911	150,895	11,3%
Trade payables	(202,148)	(187,555)	7,7%
Operating working capital	316,895	301,895	5,0%
Other assets (liabilities)	43,777	26,029	67,8%
Severance indemnity	(11,664)	(11,583)	0,7%
Risk funds	(8,025)	(7,106)	12,9%
Net invested capital	618,500	557,548	11,0%
Shareholders' equity (A)	608,741	508,194	19,8%
Group equity	563,926	466,191	21,0%
Minority interest	44,815	42,004	6,7%
Current financial liabilities	(128,860)	(125,461)	2,7%
Non current financial liabilities	(23,312)	(21,331)
Cash & equivalents	142,412	97,439	46,2%
Net debt (B)	(9,760)	(49,353)	-80,2%