ANNEXES Social Responsibility Comes First 1 SOCIAL RESPONSIBILITY - - PowerPoint PPT Presentation

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ANNEXES

GEOX GROUP - 1Q20 SALES -

MAY 7, 2020

Social Responsibility Comes First

SOCIAL RESPONSIBILITY

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SOCIAL RESPONSIBILITY IS ONE OF GEOX’S FUNDAMENTAL VALUES AND THE GROUP HAS IMPLEMENTED A NUMBER OF IMPORTANT MEASURES TO PROTECT ITS EMPLOYEES, THEIR FAMILIES AND CUSTOMERS, AS WELL AS CONTRIBUTING TO THE COLLECTIVE EFFORT TO REDUCE THE CONTAGION

• GEOX GROUP DECIDED, EVEN BEFORE MANDATORY ORDINANCES, TO TEMPORARILY CLOSE ALL OF

ITS DIRECTLY OPERATED STORES IN ITALY, EUROPE, NORTH AMERICA AND JAPAN

• THE CHAIRMAN AND THE COMPANY HAVE MADE DONATIONS TO NATIONAL HEALTH SERVICES,

CONTRIBUTING TO THE PURCHASE OF INTENSIVE CARE BEDS, VENTILATORS AND FACE MASKS

• SIGNIFICANT USE OF SMART WORKING
• IMPLEMENTATION OF VERY STRICT HEALTH PROCEDURES TO PROTECT PEOPLE COMING BACK TO

WORK, OFFERING SEROLOGICAL TESTS, HEALTH SCREENINGS AND PROVIDING FACE MASKS AND GLOVES

• CAREFUL REORGANISATION OF WORKSTATIONS AND SHARED SPACES FOR WORK DISTANCING
• THE CEO AND SENIOR MANAGERS HAVE RENOUNCED ALL VARIABLE FEES FOR 2020, REDUCING

THEIR FIXED PAY BY 20% EACH WEEK AND DONATING AT LEAST 1 DAY OF UNUSED HOLIDAY UNTIL BUSINESS RESUMES. THESE SAVINGS WILL GO TOWARDS SETTING UP FUND THAT WILL BE USED TO REFINANCE THE COMPANY’S EXISTING WELFARE PLAN WHICH, GIVEN THE EXPECTED RESULTS, WOULD NOT OTHERWISE BE OPERATIONAL, ALSO MANAGING TO INCREASE IT AND INTRODUCE A FOCUS ON HEALTH, SAFETY AND FAMILIES (IN PARTICULAR: CHILDREN, PARENTS, GRANDPARENTS, BABYSITTERS, ASSISTANCE, MORTGAGE PAYMENT, PURCHASE OF COMPUTERS AND SCHOOL MATERIALS).

RE-OPENINGS IN PROGRESS|NETWORK STATUS AS OF MAY 6

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NORTH AMERICA EUROPE ITALY REST OF WORLD

STORES CLOSED SINCE MID - MARCH

NUMBER OF STORES OPEN % STORES OPENED DOS 155 34 21% FRANCHISING 109 5 5% TOTAL STORES 264 39 15% NUMBER OF STORES OPEN % STORES OPENED DOS 150

• 0%

FRANCHISING 111 9 8% TOTAL STORES 261 9 3% NUMBER OF STORES OPEN % STORES OPENED DOS 33

• 0%

TOTAL STORES 33

• 0%

NUMBER OF STORES OPEN % STORES OPENED DOS 115 74 63% FRANCHISING 138 26 19% UNDER DISTRIBUTION AGREEMENTS 133 35 26% TOTAL STORES 386 135 35%

STORES REOPEND (DOS)

1° WAVE April 27 2° WAVE May 2 GERMANY 7 9 AUSTRIA 4 11

NETHERLANDS

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NUMBER OF STORES OPEN % STORES OPENED

DOS 453 108 23% FRANCHISING 358 40 11% UNDER DISTRIBUTION AGREEMENTS 133 35 26% TOTAL STORES 944 183 19%

E – COMMERCE REMAINED FULLY OPERATIONAL AND OVERPERFORMING

STORES CLOSED SINCE MID -MARCH STORES CLOSED SINCE END-FEB/EARLY MARCH

STORES REOPENED (DOS)

1° WAVE March 2 2° WAVE May 4 CHINA, HK, MACAU 63 POLAND 10 UNGHARY 1

STORES CLOSED SINCE EARLY FEB (APAC)/ END OF MARCH (EAST. EUROPE)

3° WAVE May 8 11 3

100% CLOSED 85% CLOSED 97% CLOSED 65% CLOSED

RE-OPENINGS IN PROGRESS|CALENDAR*

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*POSSIBLE RE-OPENING DATES FOR MAIN COUNTRIES SUBJECT TO CHANGE. DEPARTMENT STORES/MALL ARE EXPECTED TO REOPEN LATER. GERMANY AND AUSTRIA RELEASED DIFFERENT WAVES (SEE PREVIOUS SLIDE).

APRIL, 27 GERMANY AUSTRIA CECHIA MAY, 2 GERMANY AUSTRIA MAY, 4 NETHERLANDS POLAND PORTUGAL MAY, 7 GERMANY AUSTRIA MAY, 11 FRANCE SPAIN BENELUX SWITZERLAND MAY, 18 ITALY CANADA MAY, 12 RUSSIA MAY, 16 USA JUNE, 1 UK

WE BELIEVE THAT SOME OF THESE OFFICIAL REOPENING DATES ARE NOT VERY LIKELY (EXCLUDING ITALY). WE ARE CAREFULLY MONITORING OFFICIAL ANNOUNCEMENTS AND THE VARIOUS INSTRUCTIONS RECEIVED FROM GOVERNMENT AUTHORITIES.

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1Q20 SALES | HIGHLIGHTS

• TOTAL SALES: 182.9 MILLION EURO, -29.9% (-30.2% AT COSTANT FOREX).

AFTER A POSITIVE START OF THE YEAR, 1Q20 SALES HAVE BEEN IMPACTED BY COVID-19 OUTBREAK IN ALL

• REGIONS. AS OF TODAY APPROX. 20% OF THE STORES NETWORK HAS RE-OPENED.
• DIRECT ONLINE CHANNEL CONTINUED TO OUTPERFORM (+21% IN 1Q20) AND ALSO ACCELERATED ITS GROWTH IN

APRIL (+102%). CURRENT TRADING ABOVE +40% THANKS ALSO TO THE ACQUISITION OF NEW CUSTOMERS.

• SOCIAL RESPONSIBILITY IS ONE OF THE GROUP’S FUNDAMENTAL VALUES. IN THIS EXTRAORDINARY SITUATION,

PROTECTING EMPLOYEES AND SUPPORTING SUPPLIERS AND CUSTOMERS IS A PRIORITY.

• A GLOBAL TEAM HAS BEEN CREATED IN ORDER TO MANAGE THE EVOLUTION OF THE SITUATION ON A DAY-TO-DAY

BASIS, COORDINATING ALL ACTIONS AT INTERNATIONAL LEVEL WITH AN IMPORTANT AND AGGRESSIVE PLAN TO MITIGATE THE IMPACTS ON THE BUSINESS.

• THANKS TO ITS SOLID BALANCE SHEET AND FINANCIAL POSITION, THE GROUP IS MANAGING FINANCIAL

RESOURCES IN ORDER TO MATCH NORMAL WORKING CAPITAL REQUIREMENTS WITH SHORT TERM CREDIT LINES, COVID-19 UNA TANTUM CASH ABSORBTION WITH MEDIUM-TERM FACILITIES AND CAPEX FINANCED BY LONG TERM LOAN.

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1Q20 SALES| NET SALES BY CHANNEL IMPACTED BY COVID-19

NET SALES BY CHANNEL

(MLN €)

140 37 84 261 103 13 67 183 WHOLESALE FRANCHISING DOS TOTAL 1Q19 1Q20

NET SALES BY CHANNEL (IN %)

DOS 37% [32%*] FRANCHISING 7% [14%*] WHOLESALE 56% [54%*]

*[1Q19]

WHOLESALE

• LOCKDOWN MEASURES DETERMINED THE SUSPENSION OF DELIVERIES

FROM MID MARCH. EXPECTED IN 2Q MORE CANCELLATIONS, LOWER RE- ORDERS AND FURTHER SHIFTS OF DELIVERIES DUE TO THE FACT THAT MANY PLAYERS WILL PROBABLY EXTEND THE SELL-OUT PERIOD OF THE SS20 COLLECTION

FRANCHISING

• TREND EXPLAINED BY THE SAME DRIVERS SEEN FOR WHOLESALE AND BY AN

IMPORTANT UNDERLYING ASSUMPTION REGARDING THE UNSOLD FOR THE SS20 (EXPECTED TO BE AT LEAST THE DOUBLE VS FY19 FIGURE) THAT DETERMINED DOUBLED PROVISIONS TO RETURNS’ FUND.

• PERIMETER EFFECT: -13% CORRESPONDING TO -53 SHOPS FROM MARCH 2019

(415 SHOPS IN MARCH 2019 AND 362 SHOPS IN MARCH 2020)

DOS

• LFL NEGATIVE (-20.8%) DUE TO TEMPORARY CLOSURES
• SPACE EFFECT SUBSTANTIALLY FLAT
• 26.7%
• 27.2% c.FX
• 64.1%
• 64.0% c.FX
• 20.3%
• 20.6% c.FX
• 29.9%
• 30.2% c.FX

1Q19 1Q20 DELTA % GROSS DELIVERIES SS20 45,055 30,367

• 32.6%

PROVISIONS TO RETURNS FUND

• 8,219
• 17,161
• 108.8%

NET SALES 36,836 13,207

• 64.1%

IN THOUSAND €

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1Q20 SALES| LFL DOS

LFL DOS (ONLINE + OFFLINE) LFL DOS ONLINE (only)

• 2.4%

2.0%

• 20.8%
• 39.0%

FY19 JAN 20 1Q20 W18 (MAY 3, 2020)

29.0% 21.4% 41.0%

FY19 1Q20 W18 (MAY 3, 2020)

• POSITIVE START OF THE YEAR
• BUSINESS STRONGLY AFFECTED BY CORONAVIRUS

OUTBREAK FROM MID-JANUARY IN CHINA (+5.0% LFL IN THE FIRST 3 WEEKS OF JANUARY) AND FROM MARCH IN ITALY, EUROPE AND NA.

• CURRENT

TRADING IMPACTED BY LOCKDOWN MEASURES AND TEMPORARY CLOSURES

HIGHLIGHTS HIGHLIGHTS

• E-COMMERCE (INSOURCED IN EUROPE AND NA)

REMAINED FULLY OPERATIONAL.

• CURRENT TRADING AT +41% THANKS TO A STRONG

PERFORMANCE IN APRIL (+102%) THAT SHOWED A REBOUND OF CONSUMERS’ ATTITUDE ON BUYING FROM A WEAKER ATTITUDE IN MARCH

• RELEVANT PERFORMANCE IN ALL MAIN COUNTRIES

IN APRIL

CAPSULE COLLECTION WITH WWF

RELEVANT COLLABORATIONS IN KIDS

CURRENT TRADING | FOCUS ON DIRECT OLINE CHANNEL

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DIRECT ONLINE CHANNEL (GEOX.COM) SHOWED A STRONGLY IMPROVING PERFORMANCE IN APRIL (+102%) ALSO DUE TO THE PROLONGED LOCKDOWN MEASURES THAT INVOLVED ALL REGIONS. HERE BELOW SOME KPIs EMERGING FROM GEOX.COM IN MARCH AND APRIL:

• TOTAL TRAFFIC DECLINED BY APPROX. 10% IN MAIN REGIONS (GERMANY EXCLUDED +60%), BUT SHOWED A

BETTER QUALITY WITH THE CONVERSION RATE THAT MORE THAN DOUBLED (+120%).

• AVERAGE TYCKET SLIGHTLY DOWN (-10%) MAINLY DUE TO THE OUTPERFORMANCE OF KIDS SHOES (+240%

SEASON TO DATE).

• HIGHER RELATIVE INCREASE FOR THE YOUNGER CLUSTER 18 - 34 YEARS (ESPECIALLY WOMAN - LIKELY DRIVEN

BY MUMS ).

• BENEFEET (LOYALTY PROGRAM) CUSTOMERS MORE THAN DOUBLED IN APRIL 2020 VS APRIL 2019 THANKS ALSO

TO A POSITIVE ACQUISITION RATE; NEW CUSTOMERS REPRESENTED 50% OF TOTAL BENEFEET CUSTOMERS IN APRIL 2020 ALSO PROBABLY DRIVEN BY MUMS.

CURRENT TRADING|FOCUS ON RE-OPENINGS

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CHINA, HK AND MACAU: DOS SALES EVOLUTION

• 87.0%
• 50.0%

JAN 20 FEB 20 MAR 20 APR 20

• TRAFFIC AND SALES STRONGLY IMPACTED BY THE END OF JANUARY DUE TO COVID-19

OUTBREAK THAT CAUSED TEMPORARY CLOSURES FOR STORES NETWORK IN FEBRUARY.

• STORE REOPENINGS IN EARLY MARCH WITH A GRADUAL IMPROVEMENT IN TRAFFIC AND

SALES.

• RECOVERY TREND CONFIRMED IN APRIL, BUT FOOTFALL (-60%) AND SALES (-50%) REMAIN

FAR FROM NORMAL LEVELS DUE TO TRAFFIC RESTRICTIONS IN STORES AND TO THE ABSENCE OF TOURISTS.

• IMPROVING PERFORMANCE FROM ONLINE CHANNEL IN APRIL

NTIALLY FLAT IN 1Q20

GERMANY AND AUSTRIA: FIRST RE- OPENINGS (DOS)*

• GERMANY: 16 DOS RE-OPENED (1° WAVE ON APRIL 27, 2° WAVE ON MAY 2)
• AUSTRIA: 15 DOS RE-OPENED (1° WAVE ON APRIL 27, 2° WAVE ON MAY 2)
• TRAFFIC BETWEEN -80% UP TO -90% VS LAST YEAR IN MOST OF THE SHOPS IN WEEK 18
• SALES APPROX. -70% VS LAST YEAR IN WEEK 18
• CITIES AND SHOPPING STREETS A BIT MORE VISITED IN THE LAST DAYS
• NON TOURISTIC LOCATIONS (MEDIUM SIZE CITIES) PERFORMED BETTER THAN BIG CITIES
• OPENING HOURS SHORTENED
• STRONG IMPROVEMENT IN CONVERSION RATE
• FIRST DAYS OF WEEK 19 ARE SHOWING SOME IMPROVEMENT IN PERFORMANCE (TRAFFIC
• APPROX. -60%, SALES APPROX. -35%)

NTIALLY FLAT IN 1Q20

MONTHLY PERFORMANCE, LFL IN %

*SEE ALSO SLIDE 3

Munich Mall in Graz

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1Q20 SALES| NET SALES BY REGION IMPACTED BY COVID-19

NET SALES BY REGION

(MLN €)

80 113 11 58 261 43 88 9 43 183 ITALY EUROPE NORAM ROW TOTAL 1Q19 1Q20

NET SALES BY REGION (IN %)

ITALY 24% [31%*] EUROPE 48% [43%*] ROW 23% [22%*] NORAM 5% [4%*]

*[1Q19]

• 46.2%
• 46.2% c.FX
• 22.3%
• 22.5% c.FX
• 15.7%
• 17.6% c.FX
• 29.9%
• 30.2% c.FX
• 24.8%
• 25.6% c.FX

ITALY

• ITALIAN TREND WAS PARTICULARLY HIT DUE TO THE RELEVANT WEIGHT OF THE

RETAIL NETWORK (150 DOS AND 114 STORES IN FRANCHISING) AND TO THE EARLY STORE CLOSURES (END – FEB /EARLY MARCH).

• WHOLESALE IMPACTED BY THE SUSPENSION OF DELIVERIES FROM MID MARCH
• STRONG PERFORMANCE FOR ONLINE: +33% IN 1Q20 AND + 63% AS OF MAY 3

EUROPE

• TREND LESS IMPACTED THAN ITALY DUE TO THE LATER START OF LOCKDOWN

MEASURES AND TEMPORARY CLOSURES (APPROX. 1 MONTH LATER) THAT ALSO ENABLED GEOX TO KEEP DELIVERING WHOLESALE (MAINLY IN GERMANY AND AUSTRIA) AND FRANCHISING CHANNELS

• POSITIVE PERFORMANCE FOR ONLINE: +26% IN 1Q20 AND + 43% AS OF MAY 3

NORAM

• THE LATER START OF THE LOCKDOWN MEASURES DETERMINED A LOWER IMPACT ON

THE FIRST QUARTER

• WHOLESALE SUBSTANTIALLY STABLE (EASY COMPARISON BASE)
• POSITIVE PERFORMANCE FOR ONLINE: +6% in 1Q20 AND +28% AS OF MAY 3 AFTER A

VERY STRONG PERFORMANCE IN APRIL

ROW

• QUARTERLY TREND INCLUDES A DIFFERENT MIX. A NEGATIVE PERFORMANCE IN

CHINA, HK AND MACAU (THAT EXPERIENCED SINCE THE END OF JANAUARY THE START OF LOCKDOWN MEASURES AND TEMPORARY CLOSURES) HAS BEEN PARTIALLY MITIGATED BY EASTERN EUROPE THAT DELIVERED A POSITIVE TREND FOR WHOLESALE AND ONLINE AND BY A DOUBLE DIGIT GROWTH FOR DOS IN RUSSIA.

• GRADUAL IMPROVEMENT OF PERFORMANCE FROM RE-OPENINGS IN CHINA, HK AND

MACAU.

236 24 261 163 20 183

FOOTWEAR APPAREL TOTAL 1Q19 1Q20

NET SALES BY PRODUCT (IN %)

APPAREL11% [9%*] FOOWEAR 89% [91%*]

*[1Q19]

NET SALES BY PRODUCT

(MLN €) TOTAL

• 29.9%
• 30.2% c.FX

APPAREL

• 17.1%
• 17.5% c.FX

FOOTWEAR

• 31.2%
• 31.5% c.FX

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1Q20 SALES | NET SALES BY PRODUCT

1Q20 SALES |GEOX SHOPS NETWORK

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ITALY EUROPE NORTH AMERICA RoW* TOTAL GEOX SHOPS

• f which DOS

*Includes Under Distribution Agreement Shops (134 as of March 2020, 134 as of March 2019) which are shops

• pened under license by partners in the Middle East and in the Far East. Sales from these shops are not included

in the franchising channel

RETAIL NETWORK – # GEOX SHOPS -

264 150 264 155 34 34 388 115 950 454 NET OPENINGS OPENINGS ITALY EUROPE NORTH AMERICA RoW* TOTAL CLOSURES (8) (6) (3) (24) (7)

• 1
• 7

6 (8) (7)

(3)

(31) (13) X STORE ROLL OUT PLAN UPDATE 228 X STORE AT THE END OF MAR ‘20 FROM 222 AT THE END OF FY19

FRANCHISING EVOLUTION

MARCH 31, 2020

GEOX SHOPS EVOLUTION IN 1Q20

MARCH ‘19 FY19 MARCH ‘20 TOTAL NUMBER OF STORES 415 386 362 GEOX SHOPS

• f which DOS

272 148 270 159 37 37 395 110 974 454 DECEMBER 31, 2019 GEOX SHOPS

• f which DOS

281 145 277 155 37 37 396 107 991 444 MARCH 31, 2019

• 53 STORES

(-13% PERIMETER EFFECT)

1Q20 SALES|OPERATING WORKING CAPITAL

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NET WORKING CAPITAL EVOLUTION

(EURO MILLION) 252 226 209 183 283 208

2016 2017 2018 2019 1Q19 1Q20

28.0% 25.6% 25.3%

% OF SALES

28.6% 34.3%

NET FINANCIAL POSITION (before fair value hedge and IFRS16 impact)

(EURO MILLION) 22.7%

(EURO MLN) FY19 1Q19 1Q20 INVENTORIES 284.6 248.1 259.8 ACCOUNT RECEIVABLES 122.2 210.0 166.8 ACCOUNT PAYABLES (224.0) (175.6) (218.3) NET WORKING CAPITAL 182.7 282.5 208.3 % ON SALES 22.7% 34.3% 28.6%

• 100
• 80
• 60
• 40
• 20

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Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 June 20 2019 2020

• NET FINANCIAL POSITION (before fair value hedge) AT THE END OF APRIL 2020 IS -79

MILLION EURO VS -66 MILLION EURO IN APRIL 2019

• MARCH AND APRIL TOGETHER ABSORBED 25 MILLION EURO MORE THAN THE SAME

PERIOD OF THE LAST YEAR.

• FAIR VALUE HEDGE OD DERIVATIVE INSTRUMENTS IS NOT INCLUDED IN THIS FIGURES

AND IT WAS +17 MILLION EURO AS OF MARCH 31, 2020 VS +9 MILLION EURO AS OF MARCH 31, 2019

• NET WORKING CAPITAL IS STILL SOUND AT 28.6% OF REVENUES THANKS TO A STRICT

MANGEMENT OF RECEIVABLES AND THE RENEWAL OF THE VENDOR FINANCING PROGRAM THAT ENABLED THE GROUP TO MITIGATE THE EARLY SIGNS OF INCREASE IN THE INVENTORIES DUE TO COVID-19.

• TEMPORARY CLOSURES OF THE STORES, SUSPENSION OF DELIVERIES AND

RESTRICTION MEASURES WILL ADDITIONALLY INCREASE UNSOLD GOODS IN Q2 AND Q3.

• 13 mln
• 12 mln

CONTINGENCY PLAN TO MITIGATE COVID-19 IMPACTS

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BUILDING A MORE FLEXIBLE, DIGITAL AND CONSUMER ORIENTED BUSINESS MODEL

LIQUIDITY POSITION SAFEGUARD CAPEX OPTIMIZATION NWC INCREASE LIMITATION OPEX REDUCTION

 SOLID POSITION OF THE GROUP (NFP POSITIVE AS AF DEC 19)  STRICT AND PROACTIVE CREDIT MANAGEMENT (HIGH PORTION OF CREDIT PORTFOLIO IS INSURED)  RENEWAL OF THE VENDOR FINANCING PROGRAMM TO HAVE MORE FLEXIBILITY ON PAYMENTS  INCRESE FURTHER AND EXTEND THE CURRENT CREDIT LINES IN ORDER TO HAVE THE BEST FIT FOR THIS EXTRAORDINARY SITUATION  CAPEX EXPECTED TO BE REDUCED BY

• APPROX. 40% VS BUDGET (-15 MLN€)

 FOCUS ONLY ON CRITICAL INVESTMENTS (IT AND DIGITAL)  POSTPONEMENT OF NON ESSENTIAL INVESTMENTS  LIMIT/ POSTPONEMENT OF RETAIL EXPANSION  CARRING OVER PART OF THE COLLECTION (MAINLY NEW AND EVERGREEN ITEMS) FROM SS20 TO FW20 AND SS21  EXTEND THE SELL OUT PERIOD FOR THE SS20 COLLECTION UNTIL SEPTEMBER  ADJUST BUYING FOR THE FW20 COLLECTION: -20%  STRICTER PARTNERSHIP WITH CUSTOMERS LEVERAGING ON SOME “SPECIAL SUPPORT PACKAGES” IN ORDER TO DEFEND AND PROTECT CASH COLLECTIONS, SS20 ORDER TO SHIP AND FW20 BACKLOG  RENT RENEGOTIATION  USE OF STATE SUPPORT FOR STAFF SALARIES AND SEARCH FOR MORE FLEXIBLE REMUNERATIONS  CUT DISCRETIONARY SPENDING  POSTPONEMENT OF SOME MARKETING EXPENSES  FURTHER ANALYSING THE PROFITABILITY OF THE STORE NETWORK

1Q20 SALES |OUTLOOK

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WITH REGARD TO FULL-YEAR PERFORMANCE ESTIMATES, THE SERIOUSNESS OF THE CURRENT SITUATION AND THE UNCERTAINTIES ABOUT HOW LONG THE EPIDEMIC WILL LAST MEAN THAT IT IS EXTREMELY COMPLEX TO MAKE ANY KIND OF ANNUAL FORECAST. THIS IS ALSO THE CASE GIVEN THE LEVEL OF UNCERTAINTY REGARDING THE ACTUAL ECONOMIC SUPPORT MEASURES TO BE PROVIDED BY EACH COUNTRY, HOW LONG THE SO- CALLED “PHASE 2 ” WILL LAST, THE DIFFICULTY IN PREDICTING STORE PERFORMANCE DURING THE TRANSITION PERIOD AND THE IMPACTS ON CONSUMER CONFIDENCE AND THEIR FUTURE EARNING CAPACITY. THE MANAGEMENT TEAM IS IN CLOSE CONTACT WITH WHOLESALE CLIENTS IN THE VARIOUS COUNTRIES AND IS STRENGTHENING PARTNERSHIPS BY OFFERING A SUPPORT PACKAGE AIMED AT ENCOURAGING THE PAYMENT OF RECEIVABLES AS WELL AS PROTECTING THE RESIDUAL BACKLOG OF ORDERS TO BE DELIVERED FOR THE SPRING-SUMMER COLLECTION AND THE ORDERS COLLECTED FOR THE 2020 AUTUMN-WINTER COLLECTION. THIS “WHOLESALE SUPPORT PACKAGE ” IS MADE UP OF A NUMBER OF INITIATIVES:

• THE POSSIBILITY IS OFFERED TO COLLECT SUMMER PRODUCTS AT A DISCOUNT, IN ORDER TO BOOST MARGIN PERFORMANCE LEADING UP TO AND

DURING THE SALE PERIOD;

• FLEXIBLE DELIVERY IS PROPOSED FOR CLOSED-TOE SHOES THAT HAVE BEEN ORDERED BUT NOT YET COLLECTED, POSTPONING SAID DELIVERIES

TO SPRING-SUMMER 2021 WITH NO CHARGE FOR WAREHOUSING COSTS;

• FLEXIBILITY IS ALSO AGREED FOR THE DELIVERY OF WINTER PRODUCTS, GIVEN THE TENDENCY IN THE MARKET TO KEEP SUMMER COLLECTIONS IN

STORES UNTIL AT LEAST THE END OF SEPTEMBER;

• AN INCENTIVE IS OFFERED FOR THE QUICK PAYMENT OF OVERDUE RECEIVABLES AND FOR PAYMENTS TO BE DULY MADE FOR THE CURRENT

COLLECTION. THESE MARKET DYNAMICS, THE TEMPORARY CLOSURE OF STORES IN APRIL AND MAY, THE REALISTIC POSSIBILITY THAT SHOPPING CENTRES WILL REMAIN CLOSED ALSO IN JUNE AND THE FACT THAT STORES WILL GRADUALLY BE REOPENED IN A CONTEXT OF PEOPLE’S MOBILITY BEING STRONGLY REDUCED AND WITH A LACK OF TOURISTS, SHALL ALL NEVERTHELESS CONTINUE TO HAVE A NEGATIVE IMPACT IN THE SECOND QUARTER OF THE YEAR. MANAGEMENT THEREFORE EXPECTS SALES IN THE SECOND QUARTER TO RECORD A GREATER DROP, COMPARED WITH THE SAME PERIOD LAST YEAR, THAN THE ONE RECORDED IN THE FIRST QUARTER, AS THE YEAR NONETHELESS GOT OFF TO A POSITIVE START UNDER NORMAL BUSINESS CONDITIONS.

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ANNEXES

1Q20 SALES|SHAREHOLDERS, GOVERNANCE AND CONTACTS

SHAREHOLDERS

LIR* 71% MARKET 29%

INVESTOR RELATIONS – CONTACTS -

*MORETTI POLEGATO’S FAMILY

CHAIRMAN MARIO MORETTI POLEGATO CEO LIVIO LIBRALESSO DEPUTY CHAIRMAN ENRICO MORETTI POLEGATO DIRECTOR CLAUDIA BAGGIO DIRECTOR ALESSANDRO GIUSTI INDIPENDENT DIRECTOR ERNESTO ALBANESE INDIPENDENT DIRECTOR LARA LIVOLSI INDIPENDENT DIRECTOR FRANCESCA MENEGHEL INDIPENDENT DIRECTOR ALESSANDRA PAVOLINI SIMONE MAGGI IR@GEOX.COM TEL: +39 0423 282476 MOBILE:+39 335 1295349 GEOX S.P.A. VIA FELTRINA CENTRO, 16 - 31044 BIADENE DI MONTEBELLUNA, TREVISO (ITALY)

DISCLAIMER

FIGURES ARE REPORTED UNDER IAS/IFRS. CERTAIN STATEMENTS MADE IN THIS PRESENTATION ARE FORWARD LOOKING

• STATEMENT. SUCH STATEMENTS ARE BASED ON CURRENT

EXPECTATIONS AND ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY EXPECTED FUTURE RESULTS IN FORWARD LOOKING STATEMENTS. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN INVITATION TO UNDERWRITE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE OR DISPOSE OF ANY GEOX S.P.A.

• SHARES. ANY REFERENCE TO PAST PERFORMANCE IS NOT A

GUIDE TO FUTURE PERFORMANCE.

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BOARD OF DIRECTORS