GEOX GROUP FY18 RESULTS PRESENTATION FEBRUARY 27, 2019 FY18 - - PowerPoint PPT Presentation

GEOX GROUP FY18 RESULTS PRESENTATION

FEBRUARY 27, 2019

FY18 RESULTS|NET SALES BY CHANNEL

FY18 RESULTS| HIGHLIGHTS

• TOTAL SALES:EURO 827.2 MILLION, -6.5% (-5.5% AT COSTANT FOREX) MAINLY EXPLAINED BY:

NETWORK OPTIMIZATION (80 NET CLOSURES IN FY2018) PRUDENT DECISIONS TAKEN TO IMPROVE THE QUALITY AND PROFITABILITY OF THE WHOLESALE CHANNEL UNUSUAL WEATHER CONDITIONS THAT AFFECTED MAINLY 1Q18 AND 3Q18 SALES POSITIVE TREND IN 4Q18 (+2.0%) MAINLY THANKS TO A POSITIVE LFL DOS (+3.4%, OUT OF WHICH E-COM +22%)

• EBITDA ADJ*: EURO 48.2 MILLION (EURO 74.0 MILLION IN 2017)
• NET RESULT REPORTED: EURO -5.3 MILLION (EURO 15.4 MILLION IN 2017)
• NET RESULT ADJ*: EURO 2 MILLION (EURO 22.8 MILLION IN 2017)
• NET FINANCIAL POSITION POSITIVE AT EURO 2.3 MILLION (EURO -5.4 MILLION IN 2017)
• PROPOSED DIVIDEND: 0.025€ (0.06€ IN 2017)
• LTI: PROPOSED A NEW STOCK GRANT PLAN

*Excluding special items equal to Euro 9.8 million and related to network optimization and support and organizational review

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FY18 RESULTS| NET SALES BY CHANNEL

NET SALES BY CHANNEL (MLN €)

401 121 362 885 370 98 359 827 WHOLESALE FRANCHISING DOS TOTAL FY17 FY18

NET SALES BY CHANNEL (IN %)

DOS 43% [41%*] FRANCHISING 12% [14%*] WHOLESALE 45% [45%*]

*[FY17]

WHOLESALE

• SELECTIVE CANCELLATIONS DUE TO A PRUDENT

APPROACH TO CUSTOMERS AND REGIONS

• LOWER REORDERS DUE TO UNUSUAL WEATHER
• LOWER SALES OF OLD SEASON STOCK
• LOWER EARLY SS19 DELIVERIES IN 2018 (AS ALREADY

ANNOUNCED) IN LINE WITH THE INITIAL ORDER COLLECTION TREND

• A SLIGHTLY NEGATIVE IMPACT FROM FOREX

FRANCHISING

• PLANNED NETWORK OPTIMIZATION (55 NET CLOSURES

AND CONVERSION TO DOS IN 2018, APPROX. 11% OF THE FRANCHISING NETWORK AS AT DEC. 2017)

• 4Q18 BENEFITED FROM THE RECOVERY OF SOME

ORDERS POSTPONEMENT

• LFL SLIGHTLY WORSE COMPARED TO DOS IN FY18.

POSITIVE PERFORMANCE IN 4Q18

• FRANCHISING RECAPTURE IS NOT PART OF THE

STRATEGY

DOS

• DOS FLAT AT COSTANT CURRENCY
• LFL -2.3% IN FY18 MAINLY AFFECTED BY UNSEASONAL

WEATHER IN 1Q AND 3Q. POSITIVE PERFORMANCE IN 4Q18 (+3.4%)

• SLIGHTLY POSITIVE SPACE EFFECT
• 7.8%
• 6.6% c.FX
• 19.0%
• 18.3% c.FX
• 0.9%

0.1% c.FX

• 6.5%
• 5.5% c.FX

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• 1Q18: LOWER SALES OF OLD SEASON STOCK (DRIVEN BY THE REDUCTION IN

INVENTORIES) IN JAN AND FEB AND UNSEASONAL WEATHER CONDITIONS IN MARCH

• 2Q18: IMPROVING TREND FROM MID –APRIL THANKS TO MORE USUAL WEATHER

CONDITIONS

• 3Q18: POSITIVE PERFORMANCE IN JULY AND AUGUST, BUT A VERY TOUGH

SEPTEMBER DUE TO UNUSUAL WEATHER CONDITIONS THAT DETERMINED A LATE START OF THE FALL WINTER SEASON

• 4Q18: POSITIVE TREND NOTWITHSTANDING A TOUGH COMPARISON (LFL +1.1% IN

4Q17) WITH A FLAT TREND IN OCTOBER, AND A POSITIVE PERFORMANCE IN NOVEMBER AND DECEMBER

FY18 RESULTS|L4L DOS AND CURRENT TRADING

• 1Q18: LOWER SALES OF OLD SEASON STOCK (DRIVEN BY THE REDUCTION IN INVENTORIES) IN JAN AND

FEB AND UNSEASONAL WEATHER CONDITIONS IN MARCH

• 2Q18: IMPROVING TREND FROM MID –APRIL THANKS TO THE RECOVERY IN WEATHER CONDITIONS
• 3Q18: POSITIVE PERFORMANCE IN JULY AND AUGUST, BUT A VERY TOUGH SEPTEMBER DUE TO

UNSEASONAL WEATHER CONDITIONS THAT DETERMINED A LATE START OF THE FALL WINTER SEASON

• 4Q18: POSITIVE TREND NOTWITHSTANDING A TOUGH COMPARISON (LFL +1.1% IN 4Q17) WITH A FLAT

TREND IN OCTOBER, AND A POSITIVE PERFORMANCE IN NOVEMBER AND DECEMBER. DOS WEB +22%, DOS B&M +2.1%

LFL PERFORMANCE FY18

• ITALY: LFL SUBSTANTIALLY IN LINE WITH GROUP

AVERAGE IN FY18. POSITIVE PERFORMANCE IN 4Q18 (MID-SINGLE DIGIT)

• EUROPE: LFL SUBSTANTIALLY IN LINE WITH GROUP

AVERAGE IN FY18. POSITIVE PERFORMANCE IN 4Q18 (LOW TO MID-SINGLE DIGIT)

• NORAM: LFL POSITIVE (LOW TO MID SINGLE DIGIT) IN

FY18 AND 4Q18

• ROW: LFL SLIGHTLY POSITIVE IN FY18 (SUBSTANTIALLY

FLAT IN 4Q18)

• DOS WEB (GEOX.COM): +12% IN FY18

LFL PERFORMANCE – 2018 AND CURRENT TRADING -

• 8.9%
• 4.7%
• 4.3%
• 2.3%

1Q18 1H18 9M18 FY18 W1-W8 2019

LFL BY QUARTER

SLIGHTLY POSITIVE

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+0.5% IN 2H18 +3.4% IN 4Q18

FY18 RESULTS| NET SALES BY REGION

ITALY

• PLANNED NETWORK OPTIMIZATION (18 NET CLOSURES IN

FY18)

• 1Q18 AND 3Q18 IMPACTED BY UNSEASONAL WEATHER

CONDITIONS; POSITIVE PERFORMANCE IN 4Q18

EUROPE

• PLANNED NETWORK OPTIMIZATION (25 NET CLOSURES IN

FY18)

• PERFORMANCE

AFFECTED (AS FOR ITALY) BY UNSEASONAL WEATHER CONDITIONS IN MARCH AND SEPTEMBER; FLATTISH PERFORMANCE IN 4Q18

NORAM

• CLEANING UP OF THE EXISTING WHOLESALE DISTRIBUTION
• NETWORK OPTIMIZATION (5 NET CLOSURES IN FY18); STRONG

COMMITMENT TO RE-FOCUS BUSINESS ON THE MOST APPROPRIATE LOCATIONS

ROW

• POSITIVE

PERFORMANCE AT COSTANT FOREX NOTWITHSTANDING NETWORK OPTIMIZATION (UNDER DISTRIBUTION AGREEMENT SHOPS: 30 NET CLOSURES IN FY 18)

• LFL AND WHOLESALE SLIGHTLY POSITIVE

NET SALES BY REGION (MLN €)

258 383 57 187 885 240 355 51 182 827 ITALY EUROPE NORAM ROW TOTAL FY17 FY18

NET SALES BY REGION (IN %)

ITALY 29% [29%*] EUROPE 43% [44%*] ROW 22% [21%*] NORAM 6% [6%*]

*[FY17]

• 6.9%
• 6.9% c.FX
• 7.4%
• 7.3% c.FX
• 11.2%
• 7.2% c.FX
• 6.5%
• 5.5% c.FX
• 2.7%

+0.9% c.FX 5

FY18 RESULTS|NET SALES BY PRODUCT

YEARLY TREND FOR FOOTWEAR AND APPAREL MAINLY IMPACTED BY: 1) NETWORK OPTIMIZATION 2) SELECTIVE APPROACH TO WHOLESALE CUSTOMERS 3) UNSEASONAL WEATHER CONDITIONS DOUBLE-DIGIT GROWTH FOR APPAREL IN 4Q18, MAINLY THANKS TO: 1) A POSITIVE PERFORMANCE (ESPECIALLY WOMEN) OF THE NEW COLLECTION 2) AN EASIER COMPARISON BASE

797 88 885 744 83 827

FOOTWEAR APPAREL TOTAL

FY17 FY18

NET SALES BY PRODUCT (IN %)

APPAREL10% [10%*] FOOWEAR 90% [90%*]

*[FY17]

NET SALES BY PRODUCT (MLN €)

• 6.5%
• 5.5% c.FX
• 5.3%
• 3.8% c.FX
• 6.6%
• 5.7% c.FX

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FY18 RESULTS|GEOX SHOPS NETWORK

DECEMBER 31, 2018 ITALY EUROPE NORTH AMERICA RoW* TOTAL GEOX SHOPS

• f which DOS

DECEMBER 31, 2017 GEOX SHOPS

• f which DOS

304 137 310 155 42 439 105 1,095 439

*Includes Under Distribution Agreement Shops (138 as of December 2018 vs 168 as of December 2017) which are shops opened 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 -

286 143 285 154 37 37 407 110 1,015 444 42

RETAIL NETWORK GEOX SHOPS EVOLUTION IN 2018

NET OPENINGS OPENINGS ITALY EUROPE NORTH AMERICA RoW* TOTAL CLOSINGS (18) (25) (5) (80) (32) 5 8 2 57 42 (23) (33) (7) (137) (74)

X STORE ROLL OUT PLAN UPDATE 136 X STORE AT THE END OF FY18 FROM 33 AT THE END OF FY17

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FY18 RESULTS|SOCIAL MEDIA AND EDITORIALS

FACEBOOK INSTAGRAM

• FOLLOWERS: 1.5 MILLION
• WEEKLY TOTAL REACH: 1.8 MILLION
• WEEKLY TOTAL IMPRESSIONS:3.7 MILLION
• POSTS/3 MONTHS: 95 with an AVG number
• f Likes of 1.400
• AVG REACH/POSTS: 200 K
• AVG IMPRESSIONS/POSTS: 300 K

(last 3 months)

• AVG DAILY NEW LIKES: 187
• FOLLOWERS: > 210 k

↑46 k (+30%) in the last 6 months

• POSTS: 405 in the last 6 months

with an AVG number of Likes of 1.200

• AVG REACH/POSTS: 103K
• AVG IMPRESSIONS: 1 MILLION a

Week

• AVG ENGAGEMENT RATE Rate:

0.68%

FIRST POSITIVE SIGNS ALSO FROM THE GEOX DRAGON INSTAGRAM PROFILE

*Data as of January 2019

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EDITORIALS

• TOT. EDITORIAL PAGES: +80%
• FULL PAGES: +50%
• COVER PAGES: +65%

FIRST TIME IN FASHION

MAGAZINES LIKE WALLPAPER & VOGUE

FORMULA E GRANTED ALSO

THE PRESENCE IN SPORT MAGAZINES AND NEWSPAPERS

FY18 RESULTS|INCOME STATEMENT

• GROSS MARGIN INCREASE (+170 BPS) MAINLY THANKS TO SPECIFIC

MEASURES ON SUPPLY CHAIN EFFICIENCY AND TO CHANNEL MIX (HIGHER WEIGHT OF RETAIL SALES WHICH HAVE A HIGHER GROSS MARGIN)

• G&A TREND REFLECTED MAINLY THE HIGHER COSTS RELATED TO

DOS PERIMETER INCREASE AND LOGISTICS

• A&P UP BY EURO 4.1 MILLION TO SUPPORT SALES AND BRAND

IMAGE

• SPECIAL

ITEMS RELATED TO NETWORK OPTIMIZATION AND ORGANIZATIONAL REVIEW AT EURO 9.8 MILLION

• TAXES AT EURO 5.9 MILLION. IT IS IMPORTANT TO UNDERLINE THAT

THE GROUP DID NOT RECOGNIZE APPROX. 1.6 MILLION OF DEFERRED TAX ASSETS FOR CERTAIN LOSS-MAKING SUBSIDIARIES ABROAD WHICH CURRENTLY DO NOT SHOW SIGNS OF A FAST RECOVERY.

• NET RESULT ADJUSTED FOR SPECIAL ITEMS AT EURO 2 MILLION

(EURO MLN) FY18 IN % FY17 IN % CHG NET SALES 827.2 100% 884.5 100%

• 6.5%

COST OF SALES (413.5) (50.0%) (456.9) (51.7%)

• 9.5%

GROSS PROFIT 413.8 50.0% 427.6 48.3%

• 3.2%

SELLING & DISTRIBUTION (46.4) (5.6%) (47.3) (5.3%)

• 1.8%

G&A (325.5) (39.3%) (317.6) (35.9%) 2.5% A&P (26.7) (3.2%) (22.6) (2.6%) 18.1% EBIT ADJ 15.2 1.8% 40.2 4.5%

• 62.2%

SPECIAL ITEMS (9.8) (1.2%) (10.0) (1.1%)

• 1.5%

EBIT 5.4 0.6% 30.1 3.4%

• 82.2%

NET FINANCIAL EXPENSES (4.8) (0.6%) (3.4) (0.4%) 41.3% EBT 0.6 0.1% 26.8 3.0% n.m. INCOME TAXES (5.9) (0.7%) (11.4) (1.3%)

• 48.5%

TAX RATE n.m.

• 42.5%
• NET RESULT

(5.3) (0.6%) 15.4 1.7% n.m. EBITDA 38.3 4.6% 64.0 7.2% EBITDA ADJ 48.2 5.8% 74.0 8.4%

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FY18 RESULTS|BALANCE SHEET

CONFIRMED THE SOLID POSITION OF THE GROUP: POSITIVE NET FINANCIAL POSITION EQUITY AT EURO 341 MILLION EURO, EQUAL TO 98% OF THE INVESTED CAPITAL

(EURO MLN) DEC 18 DEC 17 CHG INTANGIBLE ASSETS 50.2 52.1 (1.9) TANGIBLE ASSETS 65.8 61.3 4.5 OTHER FIXED ASSETS, NET 39.1 42.6 (3.5) TOTAL FIXED ASSETS 155.1 156.0 (0.9) OPERATING WORKING CAPITAL 209.1 226.3 (17.2) OTHER CURRENT ASSETS (LIABILITIES), NET (17.7) (19.6) 1.9 INVESTED CAPITAL 346.5 362.7 (16.2) NET FINANCIAL POSITION (CASH) (2.3) 5.4 (7.7) STAFF SEVERANCE AND RISK FUND 8.1 7.8 0.3 SHAREHOLDERS’EQUITY 340.8 349.5 (8.7) INVESTED CAPITAL 346.5 362.7 (16.2)

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OPERATING WORKING CAPITAL EVOLUTION (EURO MILLION)

218 192 214 227 194 252 226 209

2011 2012 2013 2014 2015 2016 2017 2018

24.5% 23.8% 28.3% 27.5% 22.2% 28.0% 25.6% 25.3% % OF SALES OPERATING WORKING CAPITAL AS A PERCENTAGE OF SALES DECREASED TO 25.3% IN DEC 2018 (25.6% AS AT DEC 2017) THIS IMPROVEMENT IS DUE TO THE PERFORMANCE OF RECEIVABLES (IN LINE WITH SALES TREND IN WHOLESALE AND FRANCHISE) AND PAYABLES THAT MORE THAN COMPENSATED THE INCREASE IN INVENTORIES

OPERATING WORKING CAPITAL DETAILS (EURO MILLION)

(EURO MLN) FY18 FY17* CHG INVENTORIES 312.1 283.2 28.8 ACCOUNT RECEIVABLES 133.1 162.5 (29.4) ACCOUNT PAYABLES (236.0) (219.4) (16.6)

• OP. WORKING CAPITAL

209.1 226.3 (17.2) % ON SALES 25.3% 25.6%

• 30 BPS

FY18 RESULTS|OPERATING WORKING CAPITAL

*Data restated in compliance with IFRS 15

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FY18 RESULTS|CASH FLOW STATEMENT

NET FINANCIAL POSITION POSITIVE MAINLY THANKS TO:

• A STRICT CONTROL OF THE WORKING CAPITAL
• THE

FAIR VALUE ADJUSTEMENT OF DERIVATIVE CONTRACTS. AND NOTWITHSTANDING:

• CAPEX AT EURO 37.4 MILLION (30.8 MILLION IN FY17)

MAINLY RELATED TO DOS (NEW OPENINGS /RESTYLINGS) AND IT INVESTMENTS

• DIVIDENDS PAYMENT FOR EURO 15.6 MILLION (5.2 IN

2017)

(EURO MLN) FY18 FY17 NET RESULT (5.3) 15.4 DEPRECIATION & AMORTIZATION 33.0 33.8 OTHER NON CASH ITEMS 1.4 10.1 FUNDS FROM OPERATIONS 29.1 59.3 CHANGE IN OPERATING WORKING CAPITAL 7.1 23.2 CHANGE IN OTHER CURRENT ASSETS, NET (5.0) 16.1 OPERATING CASH FLOW 31.2 98.6 CAPITAL EXPENDITURES (37.4) (30.8) DISPOSALS 0.5 4.4 CAPITAL EXPENDITURES, NET (36.9) (26.5) FREE CASH FLOW (5.7) 72.1 DIVIDENDS (15.6) (5.2) CHANGE IN NET FINANCIAL POSITION (21.3) 66.9 NET FINANCIAL POSITION PRIOR TO FAIR VALUE ADJ, BEG. OF THE PERIOD 15.1 (51.6) CHANGES IN NET FINANCIAL POSITION (21.3) 66.9 EFFECT OF TRANSLATION DIFFERENCES (0.7) (0.1) NET FINANCIAL POSITION PRIOR TO FAIR VALUE ADJ, END OF THE PERIOD (6.8) 15.1 FAIR VALUE ADJUSTEMENT OF DERIVATIVE CONTRACTS 9.1 (20.5) NET FINANCIAL POSITION 2.3 (5.4)

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FY18 RESULTS|OUTLOOK 2019

• INITIAL ORDER COLLECTION FOR THE UPCOMING 2019 SPRING/SUMMER SEASON (AS REPORTED LAST NOVEMBER) SHOWS A REDUCTION OF -9.1% IN THE

WHOLESALE CHANNEL, WITH THE INDUSTRIAL MARGIN INCREASING IN LINE WITH EXPECTATIONS. OVERALL, THE RATIONALIZATION PROCESS FOR THE WHOLESALE CHANNEL, AIMED AT SUPPORTING THE GROUP’S SOLIDITY AND IMAGE, IS EXPECTED TO CONTINUE IN 2019, ALTHOUGH THIS WILL HAVE LESS OF AN IMPACT ON TURNOVER THAN IN THE PREVIOUS YEAR. THESE EXPECTATIONS SHOULD NONETHELESS BE CONFIRMED BY THE PERFORMANCE OF INITIAL ORDER COLLECTION FOR THE 2019 AUTUMN/WINTER COLLECTION, CURRENTLY ONGOING, AND BY THE ASSUMPTION THAT THERE WILL BE MORE REORDERS DURING THE SEASONS.

• THE MONO-BRAND STORE NETWORK IS EXPECTED TO REMAIN SUBSTANTIALLY STABLE: DIRECTLY-OPERATED STORES ARE EXPECTED TO CARRY GREATER

WEIGHT, THANKS TO A NUMBER OF TARGETED OPENINGS (ESPECIALLY IN CHINA) AND THE CONVERSION OF A LIMITED NUMBER OF STORES THAT WERE PREVIOUSLY FRANCHISED, AS STATED IN THE BUSINESS PLAN THAT WILL MORE THAN COMPENSATE FOR THE CLOSURES OF A NUMBER OF NON- PERFORMING DOS.

• DOS PERFORMANCE TREND SLIGHTLY POSITIVE IN JAN-FEB ‘19, FUELED BY ONLINE. RETAIL EXCELLENCE PROGRAM’S IMPACT EXPECTED TO GRADUALLY

GAIN TRACTION THROUGH THE YEAR

• THE ONGOING RESTYLING PLAN WILL CONTINUE, AIMED AT IMPROVING PERFORMANCE, WITH THE INTRODUCTION OF NEW WINDOW DISPLAYS, NEW

ASSORTMENT STRATEGIES AND NEW POLICIES FOR IN-STORE VISUALS.

• RELEVANT PROJECTS AND INVESTMENTS IN IT WILL ALSO CONTINUE, IN LINE WITH THE BUSINESS PLAN, IN ORDER TO SUPPORT THE BUSINESS AND

GUARANTEE A TRULY OMNICHANNEL OPERATING MODEL.

• THE INITIATIVES TO FURTHER INCREASE PRODUCTIVITY, ENSURE A LEAN ORGANIZATION AND BOOST OPERATING EFFICIENCY, WHICH HAVE ALREADY BEEN

SUCCESSFULLY IMPLEMENTED OVER THE LAST FEW YEARS, SHALL CONTINUE IN 2019.

• THE DIRECT E-COMMERCE CHANNEL IS EXPECTED TO CONTINUE TO GROW AT A STRONG PACE AND MAY ALSO BENEFIT FROM A NUMBER OF ADVANCED CRM

TOOLS THAT HAVE BEEN LAUNCHED, MADE POSSIBLE THANKS TO AN INCREASING DEDICATED IN-HOUSE TEAM.

• INVESTMENTS IN DIGITAL COMMUNICATION WILL CONTINUE IN ORDER TO ACCELERATE A MORE MODERN PERCEPTION OF THE BRAND

BASED ON THE ABOVE, MANAGEMENT WOULD LIKE TO HIGHLIGHT HOW, UNDER THESE CHANGED BUSINESS AND MARKET CONDITIONS, OVERALL SALES PERFORMANCE INDICATORS BASED ON INITIAL ORDER COLLECTION IN THE WHOLESALE CHANNEL ARE GRADUALLY DIMINISHING IN IMPORTANCE. IN FACT SALES WILL INCREASINGLY DEPEND ON ACTUAL PERFORMANCE OF RE-ORDERS AND REPLENISHMENT IN THE WHOLESALE CHANNEL THROUGHOUT THE SEASON AND ON COMPARABLE SALES OF THE MONO-BRAND NETWORK, BOTH ONLINE AND OFFLINE

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ANNEXES

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NEW ACCOUNTING STANDARD IN FORCE FROM JAN 1ST, 2019: IFRS 16

On January 13th, 2016, the IASB published IFRS 16 – Leases to replace IAS 17 – Leases, and the interpretations IFRIC 4 - Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases— Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The new standard provides a new definition of a lease and introduces criteria based on the control (right of use) of an asset in order to distinguish between lease contracts and service provision contracts, identifying the following determining factors: identification of the asset, the right to replace the asset, the right to obtain substantially all economic benefits from using the asset and, lastly, the right to direct the use of the asset underlying the contract. The standard establishes a single model for the recognition and measurement of lease contracts for the lessee, which states that leased assets, including those under operating leases, must be recognised under assets with a corresponding entry under financial payables. On the contrary, the standard does not include significant changes for lessors. The standard came into force on January 1St, 2019, although it was possible to apply it earlier. Geox completed a preliminary assessment of the potential impacts of applying the new standard at the transition date (January 1St, 2019). This process was broken down into various stages, including a complete mapping of the contracts that could potentially include a lease and the analysis of these contracts in order to ensure that they include the main significant provisions for IFRS 16 purposes. Geox chose to apply this standard retrospectively. However, it has recorded the accumulated effect of applying the standard on shareholders’ equity at January 1St, 2019, in accordance with IFRS 16, paragraphs C7-C13. In particular, in relation to lease contracts that were previously classified as operating leases, Geox will record: a) financial liability, equal to the current value of future residual payments at the transition date, discounted using the incremental borrowing rate applicable at the transition date for each contract; b) right-to-use equal to the value of the financial liability at the transition date, net of any accrued income and prepaid expenses and accrued expenses and deferred income referring to the lease and recorded in the balance sheet at the closing date of these financial statements. The majority of Geox’s lease contracts refer to stores. The methods used to calculate the financial liabilities and rights of use are based on the analysis of the contractual terms and conditions of each lease, including any renewal options. The Group has estimated that adopting IFRS 16 at the date of transition, January 1St, 2019, will lead to rights of use for approximately Euro 327 million and a financial liability of approximately Euro 326 million being recorded. When applying IFRS 16, Geox intends to use the exemption permitted by paragraph 5(a) and paragraph 5(b) of IFRS 16 in relation to short-term leases for the contracts with a duration of less than one year and contracts referring to low-value assets. Adopting the new standards will affect some income statement entries, including Ebitda and Ebit, after accounting for the depreciation of the right of use and the interest on the liability that will replace the lease costs. Assuming that there are no variations to the number of stores in the network at 01/01/2019, this impact is currently estimated in the range of +8/+9 percentage points with regard to EBITDA margin, +0/+0.5 points with regard to EBIT margin and +0/-0.5 points with regard to EBT margin. 15

FY18 RESULTS|SHAREHOLDERS, GOVERNANCE AND CONTACTS

SHAREHOLDERS

LIR* 71% MARKET 29%

INVESTOR RELATIONS – CONTACTS -

*MORETTI POLEGATO’S FAMILY

CHAIRMAN MARIO MORETTI POLEGATO CEO MATTEO MASCAZZINI DEPUTY CHAIRMAN ENRICO MORETTI POLEGATO DIRECTOR CLAUDIA BAGGIO DIRECTOR ALESSANDRO GIUSTI DIRECTOR LIVIO LIBRALESSO INDIPENDENT DIRECTOR ERNESTO ALBANESE INDIPENDENT DIRECTOR LARA LIVOLSI INDIPENDENT DIRECTOR FRANCESCA MENEGHEL INDIPENDENT DIRECTOR DUNCAN L. NIEDERAUER INDIPENDENT DIRECTOR MANUELA SOFFIENTINI APRIL 16 SHAREHOLDERS’ MEETING MAY 10 1Q19 SALES JULY 30 1H19 RESULTS NOVEMBER 14 9M19 SALES

SIMONE MAGGI IR@GEOX.COM TEL: +39 0423 282476 MOBILE:+39 335 1295349 LIVIO LIBRALESSO, GENERAL MANAGER –CORPORATE, CFO 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.

2019 FINANCIAL CALENDAR BOARD OF DIRECTORS

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