Corporate Presentation July 2016 1 Disclaimer This document has - PowerPoint PPT Presentation

Corporate Presentation July 2016 1

Disclaimer This document has been prepared by F.I.L.A. S.p.A. (“F.I.L.A.” or the “Company”), for information purposes only, exclusively with the aim of assisting you to understand and assess the activities of F.I.L.A.. Statements contained in this presentation, particularly regarding any possible or assumed future performance of the FILA Group, are or may be forward- looking statements based on FILA’s current expectations and projections about future events. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of FILA to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements. Consequently, FILA and its management can give no assurance regarding the future accuracy of the estimates of future performance set forth in this document or the actual occurrence of the predicted developments. The data and information contained in this document are subject to variations and integrations. Although FILA reserves the right to make such variations and integrations when it deems necessary or appropriate, FILA assumes no affirmative disclosure obligation to make such variations and integration, except to the extent required by law. Any reference to past performance of the FILA Group shall not be taken as an indication of future performance. In addition, this presentation includes certain ‘‘Adjusted’’ financial and operating indicators and other measures, which have been adjusted to reflect extraordinary events, non-recurring transactions and activities which are not directly related to the Group’s ordinary business. Such “Adjusted” information has been included to allow a better comparison of financial information across the periods; however, it should be noted that such information are not recognized as measures of financial performance or liquidity under IFRS and/or do not constitute an indication of the historical performance of the Company or the Group. Therefore, investors should not place undue reliance on such data and information. This document does not constitute or form part of any offer or invitation to purchase or subscribe any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending this presentation, you agree to be bound by the foregoing terms. 2

FILA  Global leader in design, production and marketing of creativity tools and products for children, a sector not affected by digitalization  A masterpiece of Italian entrepreneurship showing resilience and profit growth through the cycle  Listed from the 12 th of November 2015 on the MTA (“ Mercato Telematico Azionario ”) market, STAR segment ‘90s 1920 1956 ‘00s 3

A history of continuous expansion 1920 1923 1950 1956 1960 1970 1979 Tratto pen Giotto first colour Giotto first paint Candela’s family Giotto first fibre FILA launches FILA established awarded pencils line enters into Fila pens line Tratto “ Compasso d’Oro” 1994 1997 1998 2000 2001 2005 2008 FILA acquires Dixon (USA) Product extension FILA acquires FILA acquires Adica FILA opens Spanish FILA buys Suger Acquisition of Lyra on drawing Omyacolor FILA launches Pongo branch brand (France) (Germany) instruments (France) Giotto Bebè (USA, Mexico ) 2010 2011 2012 2013 2014 2015 2016 Acquisition of Investment of FILA acquires Ind. Control in WFPL FILA acquires 100% FILA opens Greece Lapicera Mex. FILA opens Turkey 18,5% in WFPL - JV Maimeri and opens reaching 51% - JV of Daler Rowney and Russia brands and assets branch with RR Group with RR Group the South African branches (UK) (Mexico) (India) (India) branch FILA acquires Licyn Mercantil (Brazil) 4

Key investment highlights FILA has all the “colours” for success A clear path A recognized leader to future growth in its reference markets 7 1 Attractive sector Growth and 6 2 fundamentals profitability 3 5 A proven, successful Skilled global business model management team 4 Strong track record of accretive M&A 5

A recognized leader in its reference markets A clear path A recognized leader to future growth in its reference markets 7 1 Growth and Attractive sector 6 2 profitability fundamentals 3 5 A proven, successful Skilled global business model management team 4 Strong track record of accretive M&A 6

A recognized leader in its reference markets Within the EDUTAINMENT sector, FILA offers multiple drawing, coloring, modelling and writing solutions primarily to young children through established local brands FILA GROUP MAIN LOCAL Edutainment MAIN PRODUCT LINES BRANDS Oil, Acrylic, Watercolor Fine Art& paint Craft Paper Brushes Canvass & Accessories GROUP PRODUCT LINES CATEGORY Highlighters, Markers Writing Writing instruments Graphite pencils Wax crayon Drawing / Paints and watercolour Colouring Colour pencils Art markers Modelling Dough Air modelling clay School Further Education, Industrial Office Hobby & Artist Pre- Primary Secondary School School School END USER CATEGORIES 7 Source: Company data

A recognized leader in its reference markets COUNTRY POSITION #1 in graphite pencils (47,2% market share in value Year Ending March US 2016*) #1 in colouring pencils ( graphite and coloured)** Mexico Market share in volume YE Dec 2015: 62,7% Market share in value YE Dec 2015: 39,7% #2 in colouring pencils and graphite pencils (38% market share in value India Jan 2016***) #1 in colouring pencils (62,3% market share in value Year Ending March Italy 2016****) • NPD source 8 ** ISCAM ( Informacion Sistematizada de Canales y Mercato) ***Data referred to FILA’s affiliate company Writefine Products Private Plc **** GFK Source

Attractive sector fundamentals A clear path A recognized leader to future growth in its reference markets 7 1 Growth and Attractive sector 6 2 profitability fundamentals 3 5 A proven, successful Skilled global business model management team 4 Strong track record of accretive M&A 9

Attractive sector fundamentals • Creative arts are essential development tools in early childhood education • A Concentrated Sector with Few Emerging Global Players • Resilient Growth in Developed Economies and Fast Growth in Emerging Markets Global specialist Globally diversified GEOGRAPHICAL COVERAGE Global Local – + PRODUCT DIVERSIFICATION Local specialist Source: Company data

A proven, successful business model A clear path A recognized leader to future growth in its reference markets 7 1 Growth and Attractive sector 6 2 profitability fundamentals 3 5 A proven, successful Skilled global business model management team 4 Strong track record of accretive M&A 11

International presence Presence in 3 continents with 14 plants, 32 legal entities and employing over 6,000 people, including Daler Centre and North America is the second market in terms of Revenues after Europe and the second market for employees after Asia Europe is the main market for FILA Europe 6 Production Centre/North plants America 11 F.I.L.A. 3 Production plants Subsidiaries 7 Daler 3 F.I.L.A. Subsidiaries Subsidiaries 2 Daler Subsidiaries ASIA 4 Production plants Headquarters 1 Plantation The South Africa Production plants 5 F.I.L.A. 1 F.I.L.A. Subsidiary Subisidiaries Commercial offices , South America Subsidiaries and legal entities 1 Production South America represents a New Area for plant With the acquisition of WFPL majority, Asia become FILA with high potentialities the first market in term of number of employees and 3 F.I.L.A. represents the Area with the highest revenues Subsidiaries potentialities 12

Global manufacturing footprint and International presence, including Daler Vertically Production Plantation integrated plants Germany plants  Pencils France  Chalks UK (#2)  Paints  Colour  Watercolour manufacturing  Paper converting China (# 2) Mexico (# 2)  Pencils Italy (#2)  Crayons  Paints  Modelling  Pencils  Slats  Felt tip pens  Slats  Markers  Modelling  Fine art Dominican India (# 2) Republic  Brushes  Polymer pencils  Wood pencils  Rubbers .  Sharpeners Brazil  Paints  Modelling  Felt tip pens  Paints  Slats 13

A well-tested production platform VERTICALLY INTEGRATED UNIQUE ACCESS  One of 2 only players with TO WOOD SOURCES HOLISTIC APPROACH TO SUPPLY vertically integrated production, able to start from the tree trunk CHAIN MANAGEMENT  China plantation (~250k trees) to create a pencil  Operating in ~6 years, savings ~ € 1m/year for the entire cycle  Dedicated R&D teams in Italy,  Covering 40% of FILA China wood  Unique technological benefits Mexico and China needs from direct slats production  Global supply chain  Indian and Mexican wood  State-of-the-art manufacturing processing facilities close to processes and technologies local wood sources (India: ca.  Polymer pencil 3.5m grosses, Mexico: ca. 2.0m  Wood-free plastic pencil with best- grosses) in-class quality off a one-single,  100% sustainable forest wood continuous manufacturing process for pencils production (Giotto,  Near-customer stock management Lyra, Ticonderoga, Prang) 14