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Tod'S

Earnings Release Mar 10, 2022

4151_rns_2022-03-10_3e38fdba-0a91-4007-b449-2d954197763d.pdf

Earnings Release

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Sant'Elpidio a Mare - March 10th, 2022

TOD'S S.p.A. – SALES REVENUES INCREASED BY 39% IN 2021 WITH PROGRESSIVE ACCELERATION DURING THE YEAR. OPERATING RESULT HIGHER THAN IN 2019. SALES OF THE E-COMMERCE CHANNEL: + 103%

The Board of Directors approved the draft of 2021 Annual Report

Sales revenues: 883.8 million Euros EBITDA: 160.8 million Euros EBIT: 24.2 million Euros Profit before tax: 2,5 million Euros Group's Net Result: -5.9 million Euros

Net Financial Debt: 70.3 million Euros (excluding 448.6 million Euros of lease liabilities)

The Board proposes not to distribute the dividend

The Board of Directors of Tod's S.p.A., the Italian company listed on the Milan Stock Exchange and holding of the luxury goods group of the same name operating in luxury and quality shoes, accessories and apparel with the Tod's, Roger Vivier, Hogan and Fay brands, today approved the Group's preliminary sales results for the fiscal year 2021.

Message of the Group's Chairman and CEO

Diego Della Valle, Chairman and CEO of the Group, commented as follows:

"Our fiscal 2021's financial performance was very satisfactory and exceeded our expectations. Sales revenues grew by 39% compared to 2020 and returned close to pre-COVID levels, progressively improving quarter after quarter, particularly for Tod's and Roger Vivier. E-Commerce had an excellent performance, more than doubling revenues compared to 2019. Strong sales growth coupled with careful cost management in all business areas contributed to the material recovery of the Group's profitability.

Year-to-date sales trends in our stores are very good, confirming the growing appreciation of customers for both our brands and products. In addition, the Fall / Winter 2023's collections, presented during the last Fashion Week, have received an extremely positive appreciation from our customers, which translated in an excellent Fall/Winter sales campaign.

In addition to the overall management of our Group, we are very focused on the growth and positioning of our individual brands, in order to strengthen them more and more, by dedicating all the necessary investments to them.

The Group is involved in humanitarian efforts to support the people mostly affected by the ongoing war, with the hope that it will end soon.

Despite the international geo-political, economic and health uncertainties, we feel optimistic about 2022 and confident we can continue to build on a solid path of sales and profitability growth."

Comments to the Group's sales

In the fiscal year 2021, consolidated sales were 883.8 million Euros, up 38.7% from 2020 and broadly close to the pre-pandemic level (-3.5% from 2019)1. During the year, sales recorded a progressive improvement compared to the previous year; in the fourth quarter alone, revenues amounted to 261.2 million euros, +41.6% compared to the fourth quarter of 2020 and +9.6% compared to the fourth quarter of 2019.

The above data are affected by the negative impact of exchange rates, particularly for the Tod's and Roger Vivier brands, which have the largest presence abroad; at constant exchange rates, i.e. using the same average exchange rates as in 2020, including the effects of hedging, the Group's revenues amounted to 886.8 million Euros (+39.2% compared to 2020 and -2.7%2 compared to 2019).

As already commented in the previous press releases, it is of little significance to make a comparison only with the sales results of 2020, which were heavily influenced by the Covid-19 pandemic; in the following tables we therefore also report the comparison, at constant exchange rates, with the data for the year 2019 and we refer particularly to the latter for comments.

Breakdown of consolidated sales by brand: progressive improvement in Tod's revenues (+13% from 2019 in Q4 alone) ; double-digit growth from 2019 for Roger Vivier (+15.9%)

FY 2021 % change % change
reported rates 2020
constant rate
FY 2020 reported rates 2020
constant rate
vs 2019
at constant
rates
Tod's 428.3 430.7 297.5 +44.0% +44.8% -6.2%
Roger Vivier 229.6 230.6 160.0 +43.5% +44.1% +15.9%
Hogan 176.7 176.3 141.5 +24.8% +24.6% -10.1%
Fay 48.2 48.2 37.6 +28.4% +28.4% -14.5%
other 1.0 1.0 0.5 n.m. n.m. n.s.
TOTAL 883,8 886.8 637,1 +38,7% +39,2% -2,7%

(million Euros)

1 In the comparison between the data of 2021 and those of 2019, it must be taken into account that in 2021, the average opening rate of stores was 91%, as a world average (a value which falls to 83% if reported to Europe alone). In 2020 this figure was 86% as a world average and 78% if reported to Europe alone. 2Calculated using 2019 average exchange rates.

The pandemic affected sales results in all geographic areas, product categories and on both distribution channels. The revenue trend of each brand reflects its geographical and channel mix.

The Tod's brand recorded a progressive and significant improvement in revenues during the year, confirming the strong appreciation by customers for the brand's new collections, both in shoes and in the new families of leather goods and accessories. This trend led the brand to record double-digit revenue growth in the fourth quarter of 2021 alone, compared to 2019, with positive trends in all geographic areas.

The Roger Vivier brand confirmed its excellent momentum, with revenues up compared to 2019 in many areas.

The sales figures of the Hogan and Fay brands were obviously affected by their greater exposure to the Italian and European markets and to the wholesale channel; we are however very satisfied with the excellent feedback from local customers.

Breakdown of consolidated sales by product category: positive performance of all categories. Revenues from leather goods and accessories return to the levels of 2019; excellent results of the new families of Tod's handbags

(million Euros)
FY 2021 % change % change
reported rates 2020
constant rate
FY 2020 reported rates 2020
constant rate
vs 2019
at constant
rates
Shoes 703.2 704.6 518.9 +35.5% +35.8% -3.0%
Leather goods
and accessories
120.1 121.6 73.4 +63.6% +65.6% +0.5%
Apparel 59.5 59.6 44.3 +34.5% +34.6% -4.9%
Other 1.0 1.0 0.5 n.m. n.m. n.s.
TOTAL 883.8 886.8 637.1 +38.7% +39.2% -2.7%

All product categories recorded a significant and progressive improvement during the year.

In the fourth quarter of the year, revenues from leather goods and accessories grew at a solid double figure compared to the value of Q4 2019 and the value for the year returned above the levels of 2019; we are receiving excellent feedback on the new product families from customers worldwide.

The results of shoes in the retail channel are also very good, even if the overall figure for this category is affected by the rationalization of the wholesale channel.

Breakdown of consolidated sales by region: strong growth in Asia throughout the year and progressive improvement of the domestic and American markets

(million Euros)

FY 2021 % change % change
reported rates 2020
constant rate
FY 2020 reported rates 2020
constant rate
vs 2019
at constant
rates
Italy 217.2 217.3 163.7 +32.7% +32.7% -16.6%
Europe
(excl. Italy)
172.5 172.8 149.5 +15.4% +15.6% -27.4%
Americas (*) 62.5 64.7 36.6 +70.6% +76.8% -7.9%
Greater
China (**)
313.4 310.5 196.5 +59.5% +58.0% +45.8%
Rest of
World
118.2 121.5 90.8 +30.2% +33.8% -6.8%
TOTAL 883.8 886.8 637.1 +38.7% +39.2% -2.7%

(*) This line includes the whole American continent (Northern and Southern America).

(**) This line includes Mainland China, Hong Kong SAR, Macao SAR and Taiwan Region.

The analysis of the results by geographical area reflects the impact of the pandemic on the business of the various countries, both for the long periods of closure of the stores in 2020 and in the first months of 2021, and for the blocking of borders and the consequent drastic reduction in tourist flows, which resulted in the almost total absence of Asian tourists in the Western markets.

In the comparison between the different fiscal years, it must be taken into account that in 2021, the average opening rate of stores was 91%, as a world average (a value which falls to 83% if reported to Europe alone) and in 2020 this figure was equal to 86% as a world average (78% if referring to Europe alone).

Revenues in the domestic market recorded a progressive improvement during the year and in the fourth quarter they returned to the values of 2019, thanks to the solid purchases of local clients.

The rest of Europe has also improved, despite the slight slowdown in the last weeks of the year due to the new restrictions imposed by local governments to deal with the pandemic. The comparison with 2019 is obviously impacted by the absence of tourists, especially Asians.

The American market was also affected by the lack of purchases by tourists; however, it has recorded good progress during the year and revenues have returned to the levels of 2019 since the third quarter, posting a further acceleration in the fourth quarter.

For the entire year, the business in Greater China was very solid and revenues maintained a very strong doubledigit growth compared to 2019.

The "Asia and Rest of the World" region recorded an excellent fourth quarter, driven by the significant improvement in results of Japan and Korea, where revenues largely exceeded 2019 figures in the fourth quarter.

Breakdown of consolidated sales by distribution channel: positive performance of the retail channel and strong growth of the e-commerce channel (online revenues more than doubled compared to 2019)

(million Euros) FY 2021 % change % change
reported rates 2020
constant rate
FY 2020 reported rates 2020
constant rate
vs 2019
at constant
rates
Retail
(DOS+online)
659.4 661.1 448.7 +47.0% +47.3% +3.1%
Third parties
(Franchised
stores +
Independent
retailers)
224.4 225.7 188.4 +19.1% +19.8% -16.4%
TOTAL 883.8 886.8 637.1 +38.7% +39.2% -2.7%

Revenues from the direct channel totaled 659.4 million euros in the year 2021, up 3.1% compared to 2019 and represent approximately 75% of the Group's turnover.

The e-commerce channel recorded very solid growth throughout the year and in FY 2021 turnover more than doubled the value of 2019. We are in fact collecting the results of the important investments made in digital and we remain focused on the development of the various forms of this channel.

The results recorded in the Group's stores were also decidedly positive, thanks to the strength of local demand, also driven by local marketing initiatives and pop-up stores.

As of December 31st, 2021, the Group's distribution network was made up of 318 DOS and 88 franchised stores, compared to 300 DOS and 103 franchised stores as of December 31st, 2020.

As already commented in previous press releases, the result of the wholesale channel remains negative also due to the strategy of great caution that the Group has adopted towards this channel, which is experiencing a structural downsizing, especially in Europe and the USA. It is absolutely not significant to analyze the trend of this channel in the individual quarters of the year, given the significant influence of the different timing of shipments.

Comments on the Profit & Loss key figures

The Group's operating results improved significantly in 2021 and returned to levels higher than those recorded in 20193, driven by the progressive acceleration of revenues, registered above all in the second half, and by the policy of prudent cost management. The more favourable geographic and channel mix of revenues resulted in a significant improvement in the gross margin. The return to near-normalcy of the business, compared to what happened in 2020 due to the impact of the Covid-19 pandemic, has determined an increase in the percentage incidence on sales of costs for services (equal to 24.5% of revenues in 2021, compared to 27.2% in 2020 and 26.1% in 2019) and the cost for the use of third party assets (equal to 6.1% of revenues in 2021, compared to 4.6% in 2020 and 6.1% in 2019), also due to a lower benefit deriving from the renegotiations of the rents, due to the lockdown. On the other hand, the percentage weight of personnel costs decreased (equal to 23.9% of revenues in 2021, compared to 29.7% in 2020 and 23.4% in 2019), despite the increase in the item in absolute value, determined by the increase of the Group's workforce4 and the lesser use, compared to 2020, of the employment support measures made available by the governments of the countries affected by the pandemic.

In the year 2021, EBITDA5 amounted to 160.8 million euros, with an incidence on revenues of 18.2%, and exceeds the value of 155.9 million euros in the 20196 financial year; the comparison with the EBITDA for the year 2020, equal to 38.1 million euros, or 6% of revenues, is not meaningful.

3 The comparison is made with 2019 operating result, net of the extraordinary income of 97.5 million Euros accounted on the disposal of the Omotesando building in Tokyo.

4 The Group has 4,746 employees as of December 31st, 2021, compared to 4,588 as of December 31st, 2020.

5 Starting from this financial year, the Group, in accordance with the reference best practice, no longer displays the EBITDA, as alternative performance indicator, in the consolidated income statement, consequently also adjusting the comparative data of the previous period. This indicator is however provided in the Annual Report, together with a specific reconciliation table, for the purpose of a more comprehensive understanding of economic performances.

6 The comparison is made with 2019 operating result, net of the extraordinary income of 97.5 million Euros accounted on the disposal of the Omotesando building in Tokyo.

The amount of ordinary depreciation and amortization was broadly stable, i.e. net of depreciation on assets for right of use (which amounted to 93.6 million euros in the 2021, compared to 104.3 million euros in 2020).

The operating result was 24.2 million euros, a marked improvement compared to the operating loss of 135.4 million euros in 2020 and a positive result of 3.6 million euros in 20197.

The impact of currency fluctuations was slightly negative; at constant exchange rates, EBITDA and EBIT would have respectively been 163.8 and 26.9 million Euros.

The Group's result before taxes, which is also affected by financial charges related to the application of IFRS16, is positive for 2.5 million euros, while it presented a negative balance of 158 million euros in 2020.

Net of current and deferred taxes for the period, the Group's net result was negative and equal to 5.9 million Euros, which compares with a loss of 73.2 million Euros in 2020.

Comments on the Balance Sheet and Cash Flow key figures

In 2021, the Group invested 44.9 million Euros in tangible and intangible fixed assets, much higher than the 30.3 million Euros of 2020 and slightly lower than the 47.3 million euros invested in 2019. As usual, the majority of these investments were devoted to the widening and update of the DOS network; the remainder was referred to the continuous renewal at industrial and corporate level, with particular focus on digital.

The net operating working capital shows a significant improvement as compared to 2020, mainly driven by the visible reduction of inventories; the balance was 262.3 million Euros as of December 31st, 2021, compared to 322.4 million Euros as of December 31st, 2020.

As required by the accounting standard IFRS 16, as of December 31st, 2021 the Group accounted for lease liabilities of 448.6 million Euros, compared to 396.4 million Euros as of December 31st, 2020. Net of these liabilities, the net financial debt was 70.3 million Euros as of December 31st, 2021, which compares to a net debt of 135.2 million Euros as of December 31st, 2020 and confirms a strong cash generation during the year. The Net Financial Position was negative and equal to 518.9 million Euros, compared to a negative debt of 531.6 million Euros, as of December 31st, 2020.

7 The comparison is made with 2019 operating result, net of the extraordinary income of 97.5 million Euros accounted on the disposal of the Omotesando building in Tokyo.

TOD'S S.P.A. – SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID – REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)–VIA FILIPPO DELLA VALLE N. 1 FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com

As of December 31st, 2021, the Group's shareholders' equity was 998.5 million Euros, compared to the 1,007.2 million Euro balance as of December 31st, 2020.

Comments on the key figures of the Parent Company Tod's SpA

The Board of Directors also approved the draft of the 2021 Annual Report for the parent company Tod's SpA, whose sales were 528.2 million Euros, up 37.6% from the 384 million Euros sales of 2020.

Net result was negative and equal to 13 million Euros; income per share was negative for 0.39 Euro.

In 2021, the parent company invested a total amount of 20.6 million Euros in tangible and intangible fixed assets, which compares to 15.1 million Euros invested in the previous year.

Net of lease liabilities, as of December 31st, 2021 the parent company's Net Financial Debt was 168 million Euros, compared to 185.3 million Euros of 2020.

The shareholders' equity of the parent company was 826.4 million Euros, which compares to 842.4 million Euros as of December 31st, 2020.

Dividend proposal

The Board approved also to propose not to distribute a dividend.

This proposal will be submitted to the approval of the Ordinary Shareholders' Meeting, convened in first call for next April 27th, 2022, at the registered office, and, if necessary, in second call for April 28th, 2022. Please note that, in compliance with the containment measures imposed by the exceptional epidemiological emergency situation by Covid-19, pursuant to art. 106, paragraph 4 of the Law Decree no. 18 (the so-called "Cura Italia Decree", converted into Law no. 27 of April 24th, 2020 as last amended by Law Decree no. 228 of December 31st , 2021), the participation in the Shareholders' Meeting of those who have the right to vote will be allowed only through the representative designated by the Company, pursuant to art. 135-undecies of the TUF.

Other resolutions

Furthermore, the Board of Directors today approved: (i) the Report on Corporate Governance and Ownership Structures for fiscal year 2021 prepared pursuant to article 123-bis of Legislative Decree no. 58/1998, and (ii) the Remuneration Report prepared pursuant to Article 123-ter of Legislative Decree no. 58/1998.

The above documents shall be made available to the public, together with the 2021 Financial Annual Report (including, the non-financial statement pursuant to Legislative Decree no. 254/16, the Report of the Board of the Statutory Auditors and the Report of the Independent Auditors), by April 6th, 2022, at the Company's registered office, in the Company's website www.todsgroup.com and in the authorized storage device at .

Please note that the audit process on the data presented in this press release has not been completed yet.

The manager responsible for preparing the company's financial reports, Mr. Rodolfo Ubaldi, declares, pursuant to article 154 bis, paragraph 2, of Legislative Decree n. 58/98 (the "Unified Financial Act"), that the accounting information contained in this press release corresponds to the document results, books and accounting records.

Should you need explanations, please contact: Investor Relations Office - tel. +39 02 77 22 51 e-mail: [email protected] Corporate website: www.todsgroup.com

Consolidated Income Statement

euro 000's
FY 21 FY 20
Revenue
Sales revenue 883,807 637,111
Other income 16,554 9,932
Total revenue and income 900,361 647,043
Operating Costs
Change in inventories of work in progress and finished goods (52,271) (19,948)
Cost of raw materials, supplies and materials for consumption (180,523) (174,619)
Costs for services (216,769) (173,245)
Costs of use of third party assets (54,122) (29,343)
Personnel costs (211,536) (189,025)
Other operating charges (23,239) (21,879)
Amortisation and depreciation (133,000) (144,766)
Write downs/Reversing of assets (4,744) (29,580)
Total operating costs (876,205) (782,405)
EBIT 24,156 (135,362)
Financial income and expenses
Financial income 26,801 26,986
Financial expenses (48,486) (49,599)
Total financial income (expenses) (21,685) (22,613)
Income (losses) from equity investments
Profit before taxes 2,471 (157,975)
Income taxes (8,409) 84,785
Profit/(loss) for the period (5,938) (73,190)
Non-controlling interests
Profit/(loss) of the Group (5,938) (73,190)
EPS (in euro) -0.18 -2.21
EPS diluted (in euro) -0.18 -2.21

Consolidated Statement of Comprehensive Income

euro 000's
Year 21 Year 20
Profit (loss) for the period (A) (5,938) (73,190)
Other comprehensive income that will be reclassified subsequently to profit and
loss:
Gains/(Losses) on derivative financial instruments (cash flow hedge) (5,748) 763
Gains/(Losses) on currency translation of foreign subsidiaries 2,568 (2,177)
Gains/(Losses) on net investments in foreign operations 1,128 3,284
Total other comprehensive income that will be reclassified subsequently to profit
and loss (B) (2,053) 1,870
Other comprehensive income that will not be reclassified subsequently to profit
and loss:
Cumulated actuarial gains/(losses) on defined benefit plans (165) (123)
Total other comprehensive income that will not be reclassified subsequently to
profit and loss (C) (165) (123)
Total Comprehensive Income (A) + (B) + (C) (8,156) (71,443)
Of which:
Attributable to Shareholders of the Parent company (8,156) (71,443)
Attributable to non-controlling interests

Consolidated Statement of Financial Position

euro 000's
12.31.21 12.31.20
Non current assets
Right of use assets
Right of use assets 436,786 382,521
Total Right of use assets 436,786 382,521
Intangible fixed assets
Assets with indefinite useful life 554,234 554,234
Other intangible assets 27,551 25,628
Total Intangible fixed assets 581,785 579,862
Tangible fixed assets
Buildings and land 53,741 53,706
Plant and machinery 9,011 9,563
Equipment 11,298 10,700
Leasehold improvement 34,108 31,507
Others 32,352 30,652
Total Tangible fixed assets 140,511 136,127
Other assets
Investment properties 8 11
Deferred tax assets 109,392 105,655
Others 22,287 18,329
Total other assets 131,687 123,995
Total non current assets 1,290,770 1,222,505
Current assets
Inventories 306,985 353,982
Trade receivables 87,564 73,653
Tax receivables 15,082 15,437
Derivative financial instruments 318 2,739
Others 70,248 65,987
Cash and cash equivalents 223,312 330,940
Total current assets 703,508 842,739
Total assets 1,994,278 2,065,244
to be continued
euro 000's
(continuing) 12.31.21 12.31.20
Equity
Share capital 66,187 66,187
Capital reserves 416,588 416,588
Hedging and translation reserves 15,258 17,311
Other reserves 506,440 580,280
Profit/(loss) attributable to the Group (5,938) (73,190)
Total Equity attributable to the Group 998,535 1,007,176
Non-controlling interest
Share capital and reserves
Profit/(loss) attributable to non-controlling interests
Total Equity attributable to non-controlling interests
Total Equity 998,535 1,007,176
Non-current liabilities
Provisions for risks 15,778 12,692
Deferred tax liabilities 10,745 4,030
Employee benefits 16,814 15,234
Derivative financial instruments
Bank borrowings 228,149 9,375
Non-current lease liabilities 353,975 305,013
Others 11,738 12,801
Total non-current liabilities 637,198 359,145
Current liabilities
Trade payables 132,235 105,270
Tax payables 17,066 11,426
Derivative financial instruments 6,719 1,827
Others 56,322 40,350
Banks 50,396 446,501
Current lease liabilities 94,640 91,337
Provisions for risks 1,167 2,213
Total current liabilities 358,545 698,924
Total Equity and liabilities 1,994,278 2,065,244

Consolidated Statement of Cash Flows

Unaudited

euro 000's
12.31.21 12.31.20
Profit/(Loss) for the period (5,938) (73,190)
Adjustments to reconcile net profit (loss) to net cash provided by (used in)
operating activities:
Amortizat., deprec., revaluat., and write-downs 139,168 210,708
Other non monetary expenses/(income) 13,424 (2,493)
Income taxes for the period 8,409 (84,785)
Changes in operating assets and liabilities:
Trade receivables (12,134) 24,264
Inventories 40,957 (7,366)
Tax receivables and tax payables 1,599 (1,994)
Trade payables 26,965 (31,921)
Other assets and liabilities 6,510 (2,983)
Change in reserve for employee (758) (1,305)
Cash flows from operating activities 218,203 28,935
Interests (paid)/collected (6,659) (2,054)
Interests (paid) on lease liabilities (11,945) (13,202)
Income taxes (paid)/refunded (1,035) (15,867)
Net cash flows from operating activities (A) 198,563 (2,188)
Acquisitions of intangible and tangible fixed assets (44,933) (30,267)
Transfers of intangible and tangible fixed assets 1,089 572
Other changes in fixed assets
Sale of Omotesando building
Cash flows generated (used) in investing activities (B) (43,845) (29,695)
Dividends paid
Capital increase
Other changes in Equity
Repayments of lease liabilities (94,608) (77,030)
Repayments of financial liabilities (417,292) (241,792)
Proceeds from financial liabilities 250,000 507,000
Cash flows generated (used) in financing (C) (261,900) 188,178
Translation differences (D) 6,716 (733)
Cash flows from continuing operations (E)=(A)+(B)+(C)+(D) (100,465) 155,563
Cash flow from assets held for sale (F)
Cash flows generated (used) (G)=(E)+(F) (100,465) 155,563
Net cash and cash equivalents at the beginning of the period 316,172 160,609
Net cash and cash equivalents at the end of the period 215,706 316,172
Change in net cash and cash equivalents (100,465) 155,563

TOD'S Group Consolidated Statement of changes in equity

Unaudited

Year 21
euro 000's
Share
Capital
Capital
reserves
Hedging
and reserve
for
translation
Retained
earnings
Group
interests
Non
controlling
interests
Total
Balances as of 01.01.21 66,187 416,588 17,311 507,090 1,007,176 1,007,176
Profit & Los s account (5,938) (5,938) (5,938)
Directly in equity (2,053) (165) (2,218) (2,218)
Total Comprehensive Income (2,053) (6,103) (8,156) (8,156)
Dividend paid
Capital increase
Share based payments
Other (484) (484) (485)
Balances as of 12.31.21 66,187 416,588 15,258 500,503 998,535 998,535
Year 20
euro 000's
Share
Capital
Capital
reserves
Hedging
and reserve
for
translation
Retained
earnings
Group
interests
Non
controlling
interests
Total
Balances as of 01.01.20 66,187 416,588 15,441 583,421 1,081,637 (1,089) 1,080,548
Profit & Los s account (73,190) (73,190) (73,190)
Directly in equity 1,870 (123) 1,747 1,747
Total Comprehensive Income 1,870 (73,313) (71,443) (71,443)
Dividend paid
Capital increase
Share based payments
Other (3,019) (3,019) 1,089 (1,930)
Balances as of 12.31.20 66,187 416,588 17,311 507,090 1,007,176 1,007,176

TOD'S S.p.A. Income Statement

Unaudited

euro 000's
Year 21 Year 20
Revenues
Sales revenues (1) 528,150 383,983
Other income 13,622 8,982
Total revenues and income 541,773 392,965
Operating costs
Change in inventories of work in progress and finished goods (42,717) (12,235)
Cost of raw materials, supplies and material for consumption (151,273) (155,617)
Costs for services (163,452) (141,627)
Costs of use of third party assets (19,285) (14,736)
Personnel costs (107,024) (93,966)
Other operating charges (12,184) (11,987)
Amortisation and depreciation (44,969) (45,905)
Write downs/Reversing of assets (590) (17,228)
Total operating costs (541,495) (493,302)
EBIT 278 (100,337)
Financial income and expenses
Financial income 23,009 24,359
Financial expenses (35,942) (38,406)
Total financial income (expenses) (12,932) (14,047)
Income (losses) from equity investments (5,973) (62,826)
Profit before taxes (18,627) (177,209)
Income taxes 5,589 60,421
Profit for the period (13,038) (116,788)
EPS (Euro) (0.39) (3.53)
EPS diluted (Euro) (0.39) (3.53)

Note:

(1) Sales revenues include transactions with Group's entities for 214.5 and 126 million euros, respectively, in the fiscal year 2021 and 2020.

TOD'S S.p.A. Statement of Comprehensive Income

euro 000's
Year 21 Year 20
Profit/(loss) for the period (A) (13,038) (116,788)
Other Comprehensive Income that will be reclassified subsequently to
profit and loss:
Gain/(Losses) on derivative financial instruments (cash flow hedge) (2,368) 787
Total other Comprehensive Income that will be reclassified
subsequently to profit and loss (B) (2,368) 787
Other Comprehensive Income that will not be reclassified
subsequently to profit and loss:
Cumulated actuarial gains/losses) on defined benefit plans (132) (117)
Total other Comprehensive Income that will not be reclassified
subsequently to profit and loss (C) (132) (117)
Total Comprehensive Income (A)+(B)+(C) (15,539) (116,118)

TOD'S S.p.A.

Statement of Financial Position

Unaudited

euro 000's
12.31.21 12.31.20
Non current assets
Right of use assets
Right of use assets 131,612 132,394
Total right of use assets 131,612 132,394
Intangible fixed assets
Assets with indefinite useful life 139,219 139,219
Others 25,324 23,864
Total intangible fixed assets 164,543 163,083
Tangible fixed assets
Buildings and land 53,656 53,616
Plant and machinery 8,567 8,939
Equipment 8,283 8,314
Leasehold improvement 7,945 9,311
Others 6,786 7,385
Total property, plant and equipment 85,236 87,566
Other assets
Investments properties 8 11
Investments in subsidiaries 509,238 463,534
Deferred tax assets 69,756 59,628
Others 5,283 6,315
Total other assets 584,285 529,487
Total non-current assets 965,677 912,531
Current assets
Inventories 193,450 229,648
Trade receivables (1) 159,633 177,513
Tax receivables 9,056 9,350
Derivative financial instruments 52 2,739
Others 63,301 62,226
Cash and cash equivalents 112,259 252,488
Total current assets 537,750 733,964
Total assets 1,503,426 1,646,495
to be continued

Note:

(1) Trade receivables include transactions with Group's entities for 106.2 and 130.8 million euros, respectively, in the fiscal year 2021 and 2020.

continuing

euro 000's
12.31.21 12.31.20
Shareholders' equity
Share capital 66,187 66,187
Capital reserves 416,507 416,507
Treasury stock
Hedging reserve (1,709) 660
Other reserves 358,490 475,843
Profit/(Loss) for the period (13,038) (116,788)
Shareholders' equity 826,438 842,408
Non-current liabilities
Provisions for risks 3,429 5,813
Deferred tax liabilities
Employee benefits 9,495 8,048
Derivative financial instruments
Bank borrowings 228,149 9,375
Non-current lease liabilities 116,995 117,585
Others 19,984 15,522
Total non-current liabilities 378,051 156,343
Current liabilities
Trade payables (2) 143,181 109,181
Tax payables 12,660 8,214
Derivative financial instruments 6,386 769
Others 71,334 62,757
Bank borrowings 39,434 428,481
Current lease liabilities 23,658 22,282
Provisions for risks 2,284 16,059
Total current liabilities 298,938 647,744
Total Shareholders' equity and liabilities 1,503,426 1,646,495

Note:

(2) Trade payables include transactions with Group's entities for 38.9 and 23 milion euros, respectively, in the fiscal year 2021 and 2020.

TOD'S S.p.A. Statement of Cash Flows

Unaudited

euro 000's
12.31.21 12.31.20
Profit/(Loss) for the period (13,038) (116,788)
Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating
activities:
Amortizat., deprec., revaluat., and write-downs 55,570 154,279
Other non monetary expenses/(income) 17,494 2,037
Income taxes for the period (5,589) (60,421)
Changes in operating assets and liabilities:
Trade receivables 8,213 9,402
Inventories 39,213 (9,503)
Tax receivables and tax payables 2,968 (2,346)
Trade payables 34,142 (29,009)
Other assets and liabilities (1,001) 22,328
Change in reserve for employee (704) (1,794)
Cash flows from operating activities 137,267 (31,816)
Interests (paid)/collected (6,301) (1,806)
Interests (paid) on lease liabilities (4,914) (5,678)
Income taxes (paid)/refunded (1,251) (16,995)
Net cash flows from operating activities (A) 124,801 (56,295)
Acquisitions of intangible and tangible fixed assets (20,622) (15,114)
Transfers of intangible and tangible fixed assets 944 353
(Increase) decrease from mergers 1,951
(Increase) decrease of equity investments (65,329) (3,566)
Reduction (increase) of other non-current assets 1,032 1,738
Cash flows generated (used) in investing activities (B) (82,023) (16,588)
Dividends paid
Capital increase
Other changes in Equity
Loans to subsidiaries 5,741 (8,720)
Repayments of lease liabilities (21,457) (17,481)
Repayments of financial liabilities (417,292) (241,792)
Proceeds from financial liabilities 250,000 507,000
Cash flows generated (used) in financing (C) (183,008) 239,007
Translation differences (D)
Cash flows from continuing operations (E)=(A)+(B)+(C)+(D) (140,229) 166,124
Cash flow from assets held for sale (F)
Cash flows generated (used) (G)=(E)+(F) (140,229) 166,124
Net cash and cash equivalents at the beginning of the period 252,488 86,364
Net cash and cash equivalents at the end of the period 112,258 252,488
Change in net cash and cash equivalents (140,229) 166,124

TOD'S S.p.A.

Statement of changes in Equity

Unaudited

Year 2021
euro 000's Share capital Capital Hedging Retained Total
reserves reserve earnings
Balances as of 01.01.21 66,187 416,507 660 359,055 842,409
Profit & Loss account (13,038) (13,038)
Directly in equity (2,368) (132) (2,500)
Total Comprehensive Income (2,368) (13,170) (15,539)
Dividends
Capital increase
Share based payments
Other (1) (433) (433)
Balances as of 12.31.21 66,187 416,507 (1,709) 345,452 826,438
Year 2020
euro 000's Share capital Capital Hedging Retained Total
reserves reserve earnings
Balances as of 01.01.20 66,187 416,507 (128) 476,416 958,983
Profit & Loss account (116,788) (116,788)
Directly in equity 787 (117) 670
Total Comprehensive Income 787 (116,905) (116,118)
Dividends
Capital increase
Share based payments
Other (457) (457)
Balances as of 12.31.20 66,187 416,507 660 359,055 842,409

Note:

(1) Other changes recorded in 2021 relate to the effects of two merger by incorporation transactions that took place during the year, i.e. the merger by incorporation of Del.Pav S.r.l. and of Filangieri 29 S.r.l. which became effective for accounting and tax purposes from January 1st, 2021.

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