Investors presentation Q1 Report March 31, 2015 May 29, 2015 - PowerPoint PPT Presentation

Investors presentation Q1 Report March 31, 2015 May 29, 2015

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: Q1 2015 Key consolidated financials: LTM Viva Integration Project Appendix 3

At a glance Key facts 2015 > Joint ventures > Project Fortogna > Portfolio licences 4

Agenda At a glance Key consolidated financials: Q1 2015 Key consolidated financials: LTM Viva Integration Project Appendix 5

Key consolidated financials 114.9 Consolidated Net sales increased +16,4% vs. PY; +5,5% at constant FX . Mainly driven by TF (+ € 6.4m), GU (+ € 3,0m), TB (+ € 1.5m) and the EZ contribution for Sales € 4,0m. Million EUR 104.1 98.7 2015 Constant FX Million EUR in 2014 FY 15,2 13.2% 2015 Q1 EBITDA Reported is € 9,0m ( € 9.8m previous year). EBITDA On Net 2015 Q1 Adjusted EBITDA* (excluding one-offs) is € 15,2m or 13.2% ( € 11.4m PY). sales LTM Adjusted Run-Rate EBITDA for 2015 is € 51.6m or 13.6% on Net sales. FY 51,6 13.6% On Net sales 220.2 Net Debt Consolidated Net Debt as of March 2015 is € 220.2m ( € 196,1m end of December 2014), growing € 24,1m vs. PY mostly due to Trade Working Capital increase (Inventory and Trade Receivables). Million EUR The ratio Net financial position to LTM Adjusted Run-rate EBITDA is 4.14 . 4.14 NFP / 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. 6

2015 YTD Q1 114.9 Global sales YTD Q1 Consolidated Sales By market destination million EUR +16.4% vs PY 104.1 mill EUR +5.5% vs PY @ const FOREX Europe Asia North America 32.7 10.0 28.4% 8.7% Mill. EUR Mill. EUR 52.2 +7.2% +2.0% 45.4% Mill. EUR +31.7% 20.0 17.4% Mill. EUR +13.1% RoW 7

YTD Q1 P&L Executive Summary • Net Sales performance was positive: + € 16.2m (+16.4%) above last year, driven by full recovery of Italy (+9,6%) and growth of Far East and Key Accounts channel. In terms of brands the performance was driven by TF (+22%), TB (+64%), MB (+30%), BA (+1.0m), GU (+12,%) and EZ launched in the first quarter 2015 (+4m). • Net Sales @ constant FX + € 5.4m or +5.5% vs. PY. • GM% in 2015 was 40bps below PY, mainly due to a price/volume effect. The selectively reduce prices for certain product lines was however more than balanced by a corresponding increase in the volumes, especially in Domestic and Key Accounts Channels, which also triggered a positive variance in the brand mix. • EBITDA Reported in 2014 is € 9,0m vs. € 9.8m last year (respectively 7,9% vs. 9.9% of Net sales). • EBITDA Adjusted, excluding one-off items, would be 13.2% (or € 15.2m) vs. 11,6% last year (or € 11.4m). • Net Financial Costs of € 1.4m include € 4,2m for Bond interests accruals. Financials also include positive unrealized exchange differences on the loan from Marcolin S.p.A. to Marcolin USA Corp. 8

Consolidated Profit & Loss Key financials: YTD Q1 YTD March Actual 15 Actual 15 Actual 14 Actual 14 (EURm) Reported Reported %NS Reported Reported %NS Net sales 114,9 100,0% 98,7 100,0% Cost of sales (46,6) -40,6% (39,7) -40,2% -- Gross Margin 68,3 59,4% 59,0 59,8% Selling and marketing costs (53,4) -46,4% (44,6) -45,2% General and administrative expenses (9,9) -8,6% (7,8) -7,9% Other operating income and expenses 0,9 0,8% 0,8 0,8% Effects of accounting for associates 0,0 0,0% 0,2 0,2% -- OPERATING PROFIT (EBIT) 6,0 5,2% 7,5 7,6% Net finance costs 1,4 1,2% (5,1) -5,2% -- Profit before taxes 7,4 6,4% 2,3 2,4% Income tax expense (3,2) -2,8% (2,1) -2,1% -- Net Result 4,2 3,7% 0,3 0,3% -- EBITDA 9,0 7,9% 9,8 9,9% -- EBITDA ADJUSTED 15,2 13,2% 11,4 11,6% 9 9

B/S Executive Summary • Net Trade Receivables: compared to Dec 14, the increase of € 20.6m is explained by the higher sales and particularly by the acceleration of the business at the end of the first quarter of 2015, due to a concentration of deliveries. In the period total consolidated DSO index is under control and increased by 5 days. • Inventory : compared to Dec 14 has risen by € 9,3m, mostly due to improve customer service aimed at reducing delivery time, and to investing in supplies of continuing products (to be “never out of stock”). It has been also impacted by the discontinuity represented new brands, particularly Zegna and Pucci, which have been recently launched. • Payables: strongly influenced by seasonality the concentration of payments of supply in the first quarter of the year, Trade Payables are substantially stable at the end of March, despite the turnover increase. • Net Financial Position: March 2015 increased from € 196.1m (Dec 14) to € 220.2m, with a change of € 24.1m mostly due to TWC, as detailed in the consolidated cash flow statement. 10

Consolidated Balance Sheet Key financials: Q1 Balance Sheet (EURm) Mar-15 Dec-14 Change vs Dec Net trade receivables 87,5 66,9 20,6 Inventory 109,4 100,1 9,3 Payables to suppliers (102,4) (102,3) (0,1) TRADE WORKING CAPITAL 94,5 64,6 29,9 Other receivables 15,6 14,1 1,5 Other payables (37,9) (31,0) (7,0) NET WORKING CAPITAL 72,2 47,8 24,4 Other receivables - medium/long term 39,1 39,4 (0,3) Equity investments 2,1 1,9 0,2 Net tangible assets 26,3 24,7 1,6 Net intangible assets 38,1 37,2 0,8 Goodwill 289,2 278,0 11,2 FIXED ASSETS 394,7 381,1 13,6 Funds and reserves (10,4) (10,0) (0,4) NET INVESTED CAPITAL 456,4 418,9 37,6 Financial debts - short term 53,1 41,4 11,7 Financial debts - medium/long term 201,1 199,2 1,9 FINANCIAL POSITION 254,1 240,5 13,6 Other current financial (28,4) (39,0) 10,6 Other non current financial (5,5) (5,5) (0,0) NET FINANCIAL POSITION 220,2 196,1 24,2 NET EQUITY 236,2 222,8 13,4 COVERAGE OF NIC 456,4 418,9 37,6 2015 and 2014 are Reported 11

Net Financial Position Key financials: Q1 (EURm) March 2015 December 2014 1 Short Term borrowings 53,1 41,4 2 Medium Long Term borrowings 208,8 207,2 Gross borrowings 261,9 248,6 Cash and cash equivalents 27,4 36,9 Financial receivables current 1,0 2,0 Financial receivables non current 5,5 5,5 Reported Net indebtedness befor Amortized Fees 228,0 204,1 Bond amortized fees (7,7) (8,1) Reported Net indebtedness after Amortized Fees 220,2 196,1 Revolving Credit Facility 20,0 20,0 Short term borrowings from Banks 19,4 15,0 M/L Term Loan - Current 2,2 1,3 Vendor Loan (HVHC) - Short Term 1,9 1,7 Bond accrued interests 6,5 2,3 Financial leasing VIVA 1,1 0,9 Other 1,9 0,2 Short Term gross borrowing 53,1 41,4 Senior Secured bonds 200,0 200,0 M/L Term Loan - Non Current 5,1 3,8 Vendor Loan (HVHC) - Long Term 2,4 2,1 Financial leasing VIVA 1,2 1,3 Other 0,1 0,1 Medium Long Term gross borrowing 208,8 207,2 12 2015 and 2014 are Reported

Consolidated Cash Flow Statement Key financials: Q1 (EURm) March 2015 December 2014 Operating activities Profit before income tax expense 7,4 7,1 Depreciation, amortization and impairments 2,8 8,6 Accruals to provisions/ other non cash items 0,5 (5,0) CF from operating activities before changes in WC, tax and int. 10,7 10,7 Movements in working capital (27,7) (3,8) Income taxes paid (0,1) (3,5) Interest paid (0,4) (17,9) Net cash flows provided by operating activities (17,4) (14,4) Investing activities (Purchase) of property, plant and equipment (2,4) (6,2) Proceeds from the sale of property, plant and equipment 0,0 1,1 (Purchase) of intangible assets (0,6) (7,4) (Acquisition) of investment - Marcolin e Viva 0,0 0,0 Net cash (used in) investing activities (3,0) (12,5) Adjustments to other non-cash items 0,5 (4,6) Financing activities Net proceeds from/(repayments of) borrowings 8,9 26,1 Other cash flows from financing activities 0,0 0,0 Net cash from/(used in) financing activities 8,9 26,1 Net increase/(decrease) in cash and cash equivalents (11,1) (5,3) Effect of foreign exchange rate changes 1,5 3,7 Cash and cash equivalents at beginning of period 36,9 38,5 Cash and cash equivalents at end of period 27,4 36,9 13 2015 and 2014 are Reported

Agenda At a glance Key consolidated financials: Q1 2015 Key consolidated financials: LTM Viva Integration Project Appendix 14