Investors presentation H1 Report June 30, 2014 August 28, 2014 - PowerPoint PPT Presentation

Investors presentation H1 Report June 30, 2014 August 28, 2014

Confidentiality This presentation has been prepared by Marcolin S.p.A. and its affiliates. The information contained herein is confidential and has been prepared solely for the needs of the adressee and is not to be relied upon by any other person or entity. Hence, if you wish to disclose copies of this report to any other person or entity, you must inform they that they may not use these reports for any purpose without Marcolin written consent. No representation, warranty or undertaking, express or implied, is made as to, and no reliance shoud be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. 2

Agenda At a glance Key consolidated financials: H1 2014 Key consolidated financials: LTM Viva Integration Project Appendix 3

At a glance 194.3 Consolidated Net sales increased +2,0%, thanks to a significant upside from TF and a good performance of TB and DL. In terms of Markets 2014 H1 has confirmed Sales the expectations of sales improvement in Europe namely Germany, Spain and Italy. Million EUR At constant FX sales increased +4,9% vs. PY. 199.9 190.6 2014 Constant FX Million EUR in 2013 2014 H1 EBITDA Reported is € 21.2m ( € 19.9m previous year). H1 24.1 12.4% 2014 H1 Adjusted EBITDA* (excluding one-offs) is € 24.1m in line with previous EBITDA On Net year. sales LTM Adjusted Run-Rate EBITDA for 2014 is € 46.9m , compared to LTM Dec 2013 of LTM 46,9 13.4% € 47.8m. The difference is mostly due to a negative fluctuation of the exchange rate of the group currencies. On Net sales 175.5 Net Debt Consolidated Net Debt as of June 2014 is € 175.5m ( € 166,2m end of December 2013) with a cash absorption of € 8.3m mostly due to seasonality of the business as well as non recurring payments. Million EUR 3.74 NFP / The ratio Net financial position to LTM Adjusted run-rate EBITDA is 3.74 Adj LTM RR Ebitda * EBITDA is affected by a number of extraordinary items. For this reason it has been adjusted to restate the one-off effects deriving from the re-organization as represented in “ Consolidated Adjusted EBITDA” page. 4

Agenda At a glance Key consolidated financials: H1 2014 Key consolidated financials: LTM Viva Integration Project Appendix 5

2014 H1 194.3 Global sales H1 Consolidated Sales By market destination million EUR +2% vs PY 199.9 mill EUR +4,9% vs PY @ const FOREX Europe Asia North America 74.5 16.7 38% 9% Mill. EUR Mill. EUR 73.8 +17.0% +2.9% 38% Mill. EUR +0.1%* 29.4 * +4,4% costant forex 15% Mill. EUR - 2,9%* * + 1 % costant forex RoW 6

Summary P&L Key Financials: H1 Q2 1H Actual 14 Actual 13 Actual 14 Actual 13 GROUP ∆ 14 vs. 13 ∆ 14 vs. 13 Reported Pro-Forma Reported Pro-Forma Net sales 95,6 93,3 2,5% 194,3 190,6 2,0% -- EBITDA 11,4 11,5 -0,5% 21,2 19,9 6,6% % of NS 12,0% 12,3% 10,9% 10,5% -- EBITDA Adj. 12,7 12,7 0,0% 24,1 24,1 0,3% % of NS 13,3% 13,6% 12,4% 12,6% Q2 1H Actual 14 Actual 13 Actual 14 Actual 13 MARCOLIN ∆ 14 vs. 13 ∆ 14 vs. 13 Reported Pro-Forma Reported Pro-Forma Net sales 58,4 55,7 4,8% 117,8 112,2 4,9% -- EBITDA 8,2 6,1 34,1% 13,9 12,5 11,0% % of NS 14,0% 11,0% 11,8% 11,2% -- EBITDA Adj. 8,8 7,3 20,6% 15,4 16,7 -7,7% % of NS 15,1% 13,2% 13,1% 14,8% Q2 1H Actual 14 Actual 13 Actual 14 Actual 13 VIVA ∆ 14 vs. 13 ∆ 14 vs. 13 Reported Pro-Forma Reported Pro-Forma Net sales 37,3 37,7 -1,0% 76,6 78,4 -2,3% -- EBITDA 3,3 5,4 -39,6% 7,3 7,4 -0,8% % of NS 8,7% 14,3% 9,6% 9,4% -- EBITDA Adj. 3,9 5,4 -28,0% 8,8 7,4 18,2% % of NS 10,4% 14,3% 11,4% 9,4% 7 7

Forex Impact Key Financials: H1 SALES PERFORMANCE 2Q 2014 1H 2014 +2.5% +2.0% At constant Forex At constant Forex +5.9% +4.9% CURRENCY HEADWINDS PERSIST  Negative impact on 1st Half sales performance for - € 5.5m of which - € 3.2m on 2nd Quarter 8 8

H1 P&L Executive Summary • Net Sales were positive: above last year + € 3.7m (+2.0%) mainly driven by TF, TB and DL. • Net Sales @ constant FX + € 9.3 m or +4.9%. • GM% in June 2014YTD was 120bps below PY, mainly due to VIVA for worse channel mix and higher close-out sales. Negative impact for € 3.3 m due to fluctuation on exchange rate vs. same period of last year. • Ebitda Reported in June 2014YTD is € 21.2m vs. € 19.9m last year (respectively 10.9% vs. 10.5% of Net sales). • EBITDA Adjusted, excluding one off items, would be 12.4% (or € 24.1 m). • Financial of € 9.6 m is including € 8.5 m for Bond interests. 9

Consolidated Profit & Loss Key financials: H1 YTD Jun Actual 14 Actual 14 Actual 13 Actual 13 (EURm) Reported Reported %NS Pro-Forma Pro-Forma %NS Net sales 194,3 100,0% 190,6 100,0% Cost of sales (76,7) -39,5% (73,0) -38,3% -- Gross Margin 117,6 60,5% 117,6 61,7% Selling and marketing costs (88,3) -45,4% (86,8) -45,5% General and administrative expenses (14,9) -7,6% (18,0) -9,5% Other operating income and expenses 1,6 0,8% 2,4 1,2% Effects of accounting for associates 0,2 0,1% 0,2 0,1% -- OPERATING PROFIT (EBIT) 16,3 8,4% 15,4 8,1% Net finance costs (9,6) -5,0% (6,8) -3,6% -- Profit before taxes 6,7 3,4% 8,6 4,5% Income tax expense (4,3) -2,2% (4,8) -2,5% -- Net Result 2,4 1,2% 3,8 2,0% -- EBITDA 21,2 10,9% 19,9 10,5% -- EBITDA ADJUSTED 24,1 12,4% 24,1 12,6% 2014 Reported and 2013 pro-forma: considering Marcolin, Cristallo and Viva 10 10

B/S Executive Summary • Inventory : has increased compared with Dec 13 (+ € 2.0m of which Marcolin + € 4.0 m and Viva - € 2.0 m); compared to June 2013 has risen for € 9.7m (which is mostly due to the PPA provision release) • Net Trade Receivables: + € 18.7 m increase compared to Dec 13 due to seasonality and turnover increase; compared to June 2013 is + € 6.8 m in line with the sales trend increase • Other Current Financials (Cash and Cash liquidity): are decreasing - € 8 m strongly affected by the following items o 2014 Bond Expenses non recurring payments ( € 3,4m); o Interests on the Bond notes paid in May for € 8.5 m; o Payment to HVHC (price adjustment of € 3,3m) • Intangible assets : include € 6.8 m renewal fees for SK ( € 0.7 m) and DL ( € 6.1 m) (payment planned starting from April) • Payables: the increase of € 13.7m is in primarily attributable to non-recurrent payables for the aforementioned extension of DL and SK licensing agreements, and guaranteed minimum royalties that will be paid after June 30th since they accrue in the second half of the year. • Net Financial Position: versus same period of previous year is affected by Bond issuance; June 2014 increased from € 166.2m in Dec. 13 to € 175.5m, with a change of € 9.3m as detailed in the consolidated cash flow statement 11

Consolidated Balance sheet Key financials: H1 Balance Sheet (EURm) June 14 Dec 13 Change Net trade receivables 80,9 62,2 18,7 Inventory 74,9 72,9 2,0 Payables to suppliers (78,4) (64,7) (13,7) TRADE WORKING CAPITAL 77,3 70,4 6,9 Other receivables 15,2 14,0 1,2 Other payables (25,7) (23,1) (2,6) NET WORKING CAPITAL 66,9 61,3 5,6 Other receivables - medium/long term 23,4 25,2 (1,8) Equity investments 2,1 2,0 0,1 Net tangible assets 22,8 23,5 (0,7) Net intangible assets 40,9 34,7 6,2 Goodwill 257,6 256,9 0,7 FIXED ASSETS 346,8 342,3 4,5 Funds and reserves (20,0) (22,4) 2,4 NET INVESTED CAPITAL 393,7 381,1 12,5 Financial debts - short term 17,9 17,7 0,2 Financial debts - medium/long term 196,2 195,9 0,4 FINANCIAL POSITION 214,2 213,6 0,6 Other current financial (32,3) (40,3) 8,0 Other non current financial (6,4) (7,1) 0,7 NET FINANCIAL POSITION 175,5 166,2 9,3 NET EQUITY 218,2 215,0 3,3 COVERAGE OF NIC 393,7 381,1 12,5 2014 Reported, Dec 2013 pro-forma and Dec 2013 Reported: considering Marcolin, Cristallo and Viva 12

Net Financial Position Key financials: H1 (EURm) June 2014 December 2013 1 Short Term borrowings 17,9 17,7 Medium Long Term borrowings 196,2 195,9 2 Gross borrowings 214,2 213,6 Cash and cash equivalents 30,6 38,5 Financial receivables current 1,6 1,8 Financial receivables non current 6,5 7,1 Reported Net indebtedness 175,5 166,2 Revolving Credit Facility €25mn 2,0 0,0 Short term borrowings from Banks 11,4 8,6 Receivable Factoring 0,0 1,1 Vendor Loan (HVHC) - Short Term 1,4 4,6 Bond accrued interests 2,2 2,3 Ministry of productive activities 0,1 0,1 Financial leasing VIVA 0,7 0,7 Other 0,1 0,3 Short Term gross borrowing 17,9 17,7 Senior Secured bonds €200mn 200,0 200,0 Bond issue amortized fees -8,5 -9,3 Vendor Loan (HVHC) - Long Term 3,1 3,0 Financial leasing VIVA 1,6 2,0 Ministry of productive activities 0,1 0,2 Other 0,0 0,0 Medium Long Term gross borrowing 196,2 195,9 13