Investors presentation Q1 Report March 31, 2017 May 25, 2017 - PowerPoint PPT Presentation

Investors presentation Q1 Report March 31, 2017 May 25, 2017

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 them 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 Key consolidated financials: Q1 2017 Appendix 3

Key consolidated financials Q1 2017 Q1 2016 Sales 124.8 122.3 Consolidated Net sales increased +2.0% vs. PY; mainly driven by TF (+3%), SK (+23%) and EZ (+29%). Good performance of new brands Omega and Moncler. + 2.0% PY Reported Adjusted Q1 17 EBITDA Reported is € 15.5m , + 8.7% vs. PY. EBITDA 15.5 15.8 Q1 17 Adjusted EBITDA* is € 15.8m or 12.6% (€15.2m or 12.4% PY). 12.4% 12.6% On Net On Net sales sales Proforma NFP proforma Q1 17 is € 245.1m considering LVMH Net Debt 267 245 capital increase rescheduled on Q2 17. The ratio NFP proforma to Adj LTM EBITDA is 4.9x 5.3x 4.9x * EBITDA is affected by few extraordinary items. For this reason it has been adjusted to restate the one-off effects as represented in “ Consolidated Adjusted EBITDA” on Appendix section. 4

2017 YTD Q1 124.8 Global sales YTD Q1 2017 Consolidated By market destination million EUR Sales +2.0% vs PY Europe Asia Americas 47.6 9.3 38.1% Mill. EUR Mill. EUR 7.5% -18.5% 51.8 +11.6% Mill. EUR -3.0% 16.1 41.5% Mill. EUR +8.7% 12.9% RoW PY like-for-like perimeter 5

Consolidated Profit & Loss Key financials: Q1 2017 Q1 17 Q1 16 Reported %NS Reported %NS Var % (EURm) Net sales 124.8 122.3 100.0% 100.0% 2.0% Gross Margin 74.1 72.7 59.4% 59.5% 1.9% EBITDA 15.5 14.3 12.4% 11.7% 8.7% EBIT 11.0 10.9 8.8% 9.0% 0.6% EBITDA ADJUSTED 15.8 15.2 12.6% 12.4% 4.1% • Net Sales: the increase compared to PY is 2.0% (+€ 2.5m); flat at constant FX. • GM: solid performance of GM thanks to price and cost control despite market pressure. • EBITDA Reported: the increase compared to PY is mainly due to lower one-off items and the improvement of operating leverage (which improved the EBITDA Adjusted ). 6 6

TWC Key financials: Q1 2017 23% 16% 22% As % of Net Sales 97 103 71 129 122 127 91 88 73 (116) (113) (129) Mar-17 Dec-16 Mar-16 Receivables Inventories Payables • TWC: increase vs Dec 16 is a timing effect due to business seasonality which will be absorbed during the year. • Trade Receivables: the increase vs Dec 16 is mainly related to seasonality effect; the increase vs Mar 16 is due to higher Q1 net sales. DSO index continues to improve compared to previous periods (5 days vs Dec. 16). • Trade Payables: the decrease vs Dec 16 is primarily attributable to licensors payments. • Inventory is slightly increasing based on expected higher turnover. 7 7

Consolidated Cash Flow Statement (Net Debt) Key financials: Q1 2017 8

Consolidated Proforma Cash Flow (Net Debt) Key financials: Q1 2017 Bridge between actual NFP Q1 2017 and NFP Proforma Q1 2017 based on assumption of roadshow presentation NFP PROFORMA Q1 2017 245.1 Million EUR LTM ADJ EBITDA Q1 2017 50.4 Million EUR RATIO NFP TO LTM ADJ EBITDA 4.9x …as per roadshow presentation 9

Updates Market and Marcolin key trends Signature of Joint Venture agreement with Rivoli Group, one of the 1 largest luxury retailers in the Middle East Area Early Renewal of Diesel License Agreement….better economic 2 condition and no renewal fees Next steps … JV- LVMH…complete antitrust and other regulatory approval 1 processes 2 Looking at strengthening presence in Mexico and Japan area…JVs 10 10

Agenda Key consolidated financials: Q1 2017 Appendix 11

Consolidated Profit & Loss Appendix Q1 2017 Q1 2016 (EURm) Reported %NS Reported %NS Net sales 124.8 100.0% 122.3 100.0% Cost of sales (50.7) -40.6% (49.6) -40.5% Gross Margin 74.1 59.4% 72.7 59.5% Selling and marketing costs (51.4) -41.2% (51.3) -41.9% General and administrative expenses (7.3) -5.8% (7.4) -6.1% Other operating income and expenses 0.1 0.1% 0.2 0.2% EBITDA 15.5 12.4% 14.3 11.7% Amortization-Depreciation (4.5) -3.6% (3.3) -2.7% Operating Profit 11.0 8.8% 10.9 9.0% Net finance costs (18.7) -14.9% (7.1) -5.8% Profit before taxes (7.6) -6.1% 3.8 3.1% Income tax expense 1.0 0.8% (0.7) -0.5% Net Result (6.7) -5.3% 3.2 2.6% EBITDA ADJUSTED 15.8 12.6% 15.2 12.4% 12 12

Consolidated Balance Sheet Appendix Mar-17 Dec-16 Change Balance Sheet (EURm) Trade receivables 90.6 72.6 17.9 Inventory 128.5 126.9 1.6 Trade Payables (116.3) (128.5) 12.2 TRADE WORKING CAPITAL 102.7 71.0 31.7 Other assets 13.3 13.1 0.2 Other liabilities (41.3) (36.0) (5.3) NET WORKING CAPITAL 74.8 48.1 26.6 Other non current assets 40.3 36.4 3.9 Equity investments 1.0 0.9 0.1 Property, plant and equipment 25.8 25.5 0.3 Intangible assets 48.5 49.8 (1.3) Goodwill 289.5 290.9 (1.4) FIXED ASSETS 405.2 403.6 1.6 Funds (8.1) (7.8) (0.3) NET INVESTED CAPITAL 471.8 443.9 28.0 Current financial liabilities 57.8 51.7 6.1 Non current financial liabilities 250.3 199.9 50.4 FINANCIAL POSITION 308.0 251.6 56.5 Current financial assets (38.0) (42.9) 4.9 Non current financial assets (3.1) (3.8) 0.7 NET FINANCIAL POSITION 267.0 204.8 62.1 EQUITY 204.9 239.0 (34.1) COVERAGE OF NIC 471.8 443.9 28.0 13 13

Consolidated Adjusted Ebitda Appendix Q1 2017 Q1 2016 in € Mln, except percentages EBITDA pre-adjustment 15.5 14.3 Costs of discontinued operations 0.0 0.0 Pro-Forma EBITDA 15.5 14.3 Senior management changes 0.3 0.9 Total adjustments 0.3 0.9 EBITDA ADJUSTED 15.8 15.2 Net Sales 124.8 122.3 % on Net Sales 12.6% 12.4% LTM 2017 LTM 2016 in € Mln, except percentages EBITDA pre-adjustment 47.7 45.0 Costs of discontinued operations 0.7 0.7 Pro-Forma EBITDA 48.3 45.6 Senior management changes 1.9 1.5 Cost related to VIVA Integration 0.0 3.1 Other 0.1 0.0 Total adjustments 2.0 4.6 EBITDA ADJUSTED 50.4 50.2 Net Sales 444.4 442.3 % on Net Sales 11.3% 11.3% 14

Net Financial Position Appendix Mar-17 Dec-16 (EURm) Current financial liabilities 57.8 51.7 1 Non current financial liabilities 256.4 205.0 2 Financial Liabilities 314.2 256.7 Cash and cash equivalents 37.3 42.2 Current, Non Current financial assets and Amortized Fees 9.9 9.7 Financial Assets 47.2 51.9 Net Financial Position 267.0 204.8 Revolving Credit Facility 30.0 25.0 Short term borrowings from Banks 8.8 8.3 Current Financial Loan 17.0 15.5 Bond accrued interests 1.6 2.5 Current Financial lease 0.4 0.4 Current financial liabilities 57.8 51.7 Senior Secured bonds 250.0 200.0 Non Current Financial Loan 5.7 4.2 Non Current Financial lease 0.7 0.8 Non Current financial liabilities 256.4 205.0 15