february 26, 2016 · lfl performance 4q 2015, january, february (week 1 - 7, 2016) september....

GEOX GROUP – INVESTOR DAY February 26, 2016

GEOX GROUP – INVESTOR DAY February 26, 2016

FY2015 RESULTS PRESENTATION

Livio Libralesso, CFO

DOS – FW15 LFL AND CURRENT TRADING

7%

17%

Slightly positive

8%

0%

3%

6%

9%

12%

15%

18%

LFL PERFORMANCE 4Q 2015, JANUARY, FEBRUARY (WEEK 1 - 7, 2016)

September October Novemberand

December

Januaryand

February(w1-w7)

• 4Q: DOS LFL has been solid

+4.8% …

• … however below expectation

(4Q budget: +9.5%) and

materially impacted by two

non company specific issues:

the tragic events in Paris

record warm weather in

EU

• Current trading (January and

February, w1-w7) is up 8.1%

(vs 5.9% LY)

SOLID GROWTH IN LFL

3

EBITDA 2015: ACTUAL VS BUSINESS PLAN

2015 B. PLAN 2015 ACTUAL

(+)Strong overperformanceof all business KPI’s compared to Business Plan assumptions in core products and markets

(-)Non company specific issues:- Early termination of the China Distribution agreement (-9m) - macroeconomic

turmoil inHK, Ucraine, MEA

(-) LFL DOS 4Q:+4.8% vs+9.5% budget

Euro 68/70m

62m ACTUAL

€.million, for illustrative purpose

4

FY 2015 KEY FACTS

• Sales: Euro 874.3 million +6.1% (+3.9% constant FX)

• Directly Operated Stores Same Store Sales: +4.2% (vs +7.9% in FY14);

• EBITDA: Euro 61.8 million +45.0% (Euro 42.6 million in FY14)

• EBIT: Euro 24.9 million +409.0% (Euro 4.9 million in FY14)

• Net Result: Euro 10.0 million (Euro -2.9 million in FY14)

• Net Cash: Euro +20.8 million (Euro -13.0 million Net Debt as of FY14)

• Geox board proposed an annual dividend of Euro 0.06 per share

5

GROSS MARGIN

NET SALES

FY 2015 KEY FACTS

• Sales: Euro 874.3 million +6.1% (+3.9% constant FX)

• Sales 4Q15: +6.1% (+4.1% constant FX)

• 120 million increase over the 2014-2015 period, +7.7% CAGR754

824

874

2013 2014 2015

351404

451

46.6%49.0%

51.6%

2013 2014 2015

+6%

+9%

+12%+15% • Gross Margin: 260 bps increase in 2015, driven by a favourable

full price performance, lower promotional sales, cogs reduction

and channel mix effect (just 30bps)

• 500 bps increase over the 2014 – 2015 period

HEALTHY GROWTH IN NET SALES

GROSS MARGIN EXPANSION DELIVERED

6

EBITDA

EBIT STEADY ENHANCEMENT OF NET CASH POSITION (DEBT)

POSITIVE OPERATING LEVERAGE

FY 2015 KEY FACTS

-16 (*)

5

25

2013 2014 2015

11

43

62

2013 2014 2015

+45%

+299%

+409%

* EBIT Adj.

-28

-13

21

2013 2014 2015

+34M

• 50% of the gross margin increase turned

into greater operating profitability

• Strong cash flow generation

transformed the net financial position

into positive net cash

7

NET SALES BY CHANNEL

Franchising 16%[18%*]

DOS 43%[42%*]

Wholesale 41%[40%*]

330

149

346

824

354

142

378

874

Wholesale Franchising DOS Totale

+7.2%+4.1% c.fx

-4.4%-3.6% c.fx

+9.5%+6.9% c.fx

+6.1%+3.9% c.fx

• Franchising: -4.4% due to space effect partially offset by LFL of + 3.9% (vs 5.6% in FY14)

• DOS: +9.5% due to space growth and to a LFL of +4.2% (vs +7.9% in FY14); LFL Fall/Winter 2015 season (from

week 35 to week 52) +5.4%

€.million[* FY14]

8

GEOX SHOPS NETWORK

December 31, 2015 December 31, 2014 FY2015

Geox of which Geox of which Net

Shops DOS Shops DOS Openings Openings Closings

Italy 360 131 421 173 (61)** 11 (72)**

Europe 348 179 350 167 (2) 22 (24)

North America 47 47 44 44 3 7 (4)

Rest of World * 406 119 410 93 (4) 81 (85)

Total Geox Shop 1,161 476 1,225 477 (64) 121 (185)

* includes Under Distribution Agreement Shops (142 as of December 2015) which are shops opened under license by partners in the Middle East and in the Far East.

** includes 41 small total look concession that have been closed due to the dismissal of total look apparel

9

NET SALES BY PRODUCT

Apparel 10%[12%*]

Footwear 90%[88%*]

€.million[* FY14]

722

103

824785

89

874

Footwear Apparel Total

+8.8%+6.3% c.fx

-12.9%-13.0% c.fx

+6.1%+3.9% c.fx

• The strong performance of Footwear (+63 million) has offset the decrease of 14 million of Apparel due to the

discontinued categories

• However the LFL performance of the new FW15 Apparel collection in the DOS channel is + 14% (w35-w52)

10

NET SALES BY REGION

NA 7%[7%]Europe 43%

[44%*]

273359

56137

824

281

376

63

155

874

Italy Europe Nord America RoW Total

+3.1% +4.6%+4.0% c.fx

+13.1%+5.8% c.fx

• Healthy growth spread all over the regions

• Row: the strong performance of the Row have more than offset the slowdown experienced by China, HK, Ucraine

and Greece. Excluding these countries the Row was up 17.7% c.fx

Italy 32%[33%*]

Row 18%[17%]

+13.1%+2.8% c.fx

+6.1%+3.9% c.fx €.million

[* FY14]

11

SUMMARY INCOME STATEMENT

(Euro.m) 2015 % 2014 % ∆ %

Net Sales 874.3 100% 824.2 100% 6.1%

Cost of sales (423.5) (48.4%) (420.4) (51.0%)

Gross Profit 450.8 51.6% 403.8 49.0% 11.6%

Selling & Distribution (49.4) (5.6%) (48.5) (5.9%)

G&A (334.2) (38.2%) (308.3) (37.4%)

A&P (42.3) (4.8%) (42.1) (5.1%)

EBIT 24.9 2.8% 4.9 0.6% 409.0%

Net Interest (5.8) (0.7%) (6.3) (0.8%)

EBT 19.1 2.2% (1.4) (0.2%)

Income Taxes adj* (7.1) (0.8%) (1.5) (0.2%)

Tax rate adj* 37.4%* (104%)

NET INCOME adj 12.0 1.4% (2.9) (0.4%)

Tax assets adj* (1.9) (0.2%)

NET INCOME 10.0 1.1% (2.9) (0.4%)

EBITDA 61.8 7.1% 42.6 5.2% 45.0%

* Italian Law no. 208 dated 28/12/2015 (the so-called ‘2016 Stability Law’) introduced a reduction in the IRES (Italian Corporate Income Tax) rate from 27.5% to 24%, valid from the 2017 tax year onwards. This positive reduction in future tax rate however implied an adverse non cash non recurring impact in 2015 taxes (Euro 1,947 thousand) due to the consequent adjustment to the 2015 deferred tax assets made in order to decrease the reversal effect from 2017 onwards from 27.5% to 24%. Without this effect, the tax rate for the year would have been 37.4%.

12

SUMMARY BALANCE SHEET

(Euro.m) Dec, 2015 Dec, 2014 ∆Intangible Assets 57.8 60.1 (2.4)

Tangible Assets 68.4 64.5 3.9

Other Fixed Assets, net 51.7 54.8 (3.1)

Total Fixed Assets 177.8 179.4 (1.6)

Operating Working Capital 193.8 226.7 (32.9)

Other current assets (liabilities), net (13.6) (10.6) (3.0)

Invested Capital 357.9 395.5 (37.5)

Net Financial Position (Cash) (20.8) 13.0 (33.8)

Staff Severance and Risk Fund 7.9 8.8 (1.0)

Shareholders’ Equity 370.9 373.7 (2.8)

Invested Capital 357.9 395.5 (37.5)

13

OPERATING WORKING CAPITAL

(Euro.m) Dec, 2015 Dec, 2014 ∆ ∆ %

Inventories 304.8 287.7 17.1 5.9%

Account receivables 113.0 106.5 6.5 6.1%

Account payables (224.0) (167.6) (56.4) 33.7%

Operating Working Capital 193.8 226.7 (32.9) (14.5%)

Sales 874.3 824.2 50.1 6.1%

% on sales 22.2% 27.5%

% on sales

24.5% 23.8% 28.3% 27.5% 22.2%

218

192

214

227

194

2011 2012 2013 2014 2015

STRONG PERFORMANCE OF NWC

• The operating working capital as a

percentage on sales decreased to

22.2%

• The strong improvement in net

working capital is due to the process

undertaken to strengthen long term

partnerships with suppliers, allowing

for the optimization of payments

• The increase of inventories is mainly

due to 2016 Spring Summer products

• The increase in account receivables is

in line with wholesale and franchising

sales growth

14

FREE CASH FLOW

NET CAPITAL EXPENDITURES

OPERATING CASHFLOW

FINANCIAL HIGHLIGHTS

3933

38

2013 2014 2015

-22

11

85

2013 2014 2015

-61

-22

47

2013 2014 2015

+69M

STRONG CASH FLOW GENERATION

• 38 million CAPEX fully

covered by operating cash

flow

• Strong cash flow generation

turned net financial position

into cash15

SUMMARY CASH FLOW STATEMENT

(Euro.m) 2015 2014 ∆Net result 10.0 (2.9) 12.9Depreciation & Amortization 36.9 37.8 (0.8)Other Non-Cash Items (9.0) (1.5) (7.6)Funds from Operations 37.9 33.3 4.6Change in Operating Working Capital 43.3 (15.4) 58.7Change in Other Current Assets, net 3.6 (6.8) 10.4Operating Cash Flow 84.8 11.0 73.7Capital Expenditures (39.2) (35.8) (3.5)Disposals 1.1 2.9 (1.8)Capital expenditures, Net (38.1) (32.8) (5.3)Free Cash Flow 46.6 (21.8) 68.4Dividends 0.0 0.0 0.0Change in Net Financial Position 46.6 (21.8) 68.4

Net Financial Position prior to fair value adj, beg. of the period (41.0) (18.3) (22.7)Changes in Net Financial Position 46.6 (21.8) 68.4Effect of translation differences (1.4) (0.9) (0.5)

Net Financial Position prior to fair value adj, end of the period 4.2 (41.0) 45.2Fair value adjustment of derivative contracts 16.6 28.0 (11.5)Net Financial Position 20.8 (13.0) 33.8

16

2014-2015 CUMULATED RESULTS

2014 2015 TOTAL

• Wholesale growth +2,0% +7,2% +9,4%

• L4L DOS growth +7,8% +4,2% +12,3%

• Franchising L4L performance +5,7% +3,9% +9,8%

• Gross Margin expansion +240bps +260bps +500bps

• Back to profitability

• Efficiency in working capital management

• 100 mln operating cash flow

• 75 mln capex fully paid

• Back to positive net financial position

• Increase in share price

• Reinstituting annual dividends TURNAROUND ACCOMPLISHED

17

GIORGIO PRESCA

2014-2016 Geox business plan

19

0

100

200

300

400

500

600

700

800

900

1000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CAGR‘01-’08

CAGR‘09-’13

CAGR‘14-’15

+29% -3% +8%

+43% -40% +141%

Birth & Growth Diversification & Expansion

Master GEOX DNA Fundamentals

NET SALES

EBITDA

EXTERNAL FACTORS: NON COMPANY SPECIFIC

CHINA UKRAINE

TURKEYASIA

WORLD TURMOIL E-COM

CURRENCY IMPACT WEATHER

Master the Geox DNA Fundamentals to Grow

Simplification, Focus, Skill, Specialization

KEY TAKE OUTS

WE ACHIEVED A LOT, FACING RESTRUCTURING GOALS AND UNFORESEEN CHALLENGES, DELIVERING SOLID GROWTH ON TOP AND BOTTOM LINE RESULTS WITH A FOCUSED STRATEGY AND A SOLID SPECIALISED ORGANIZATION IN PLACE

the world has changed and is changingwe learned from 2013-2015 past strategic cycleour strategy is successful and needs to adapt to the changed environment and to evolve to the

next step22

23

WHERE DOES OUR BRAND STAND

24

CORE MARKETS HEALTHIER AND BRAND RICHER THAN

EVER

HEALTHIER AND RICHER BRAND THAN EVER

25

HIGH BRAND AWARENESSSTABLE IN ALL CORE MARKETS

THANKS TO A&P SUPPORT AND WIDESTREAD

DISTRIBUTION

STABLE TOP SCORES IN ALL CORE MARKETS THANKS TO A&P SUPPORT

AND WIDESPREAD DISTRIBUTION

Base: Total sample Adults 25-55 years old;

ITALY: 1000 respondents / DE, FR, ES : 500 respondents per Country

*INDIPENDENT SOURCE: IPSOS – ADVERTISING TRACKING UPDATE DECEMBER 2015


26

TOP FIVE BRANDS LIST BY VALUE SHARE IN CORE EUROPEAN MARKETS

ABSOLUTE LEADER IN ITALY, IN WOMEN AS WELL AND ONE OF THE MAIN PLAYERS IN THE FRAGMENTED EUROPEAN MARKETS

SOURCE : SITARICERCA SRL YEAR ENDING JUNE 2015


27

LEADING BRAND AMONG ALL CONSUMER TARGETS

GEOX SCORES BRAND EQUITY TOP POSITIONS IN ITALY, GERMANY, FRANCE AND

SPAIN ON WOMEN, MEN AND KIDS

SOURCE : BAV - BRAND ASSET VALUATOR BY Y&R (France 2014, Spain 2015, Italy 2013, Germany 2014)


28

GEOX – FEMALE 30-70 YEARS OLD

0

50

100

0 50 100

BRAN

D ST

REN

GTH

BRAND STATURE

NEW BRAND

NICHE BRAND LEADERSHIP

EROSION

MASS MARKET

UNFOCUSED BRAND

Low

High

Low High

GEOX – MALE 30-70 YEARS OLD

0

50

100

0 50 100

BRAN

D ST

REN

GTH

BRAND STATURE

NEW BRAND

NICHE BRAND

LEADERSHIP

EROSION

Low

High

Low High

UNFOCUSED BRAND

MASS MARKET

CORE MARKETS REPRESENT THE HIGHEST POTENTIAL DEVELOPED BY THE BRAND WITH STRONG

HEALTH BOTH ON FEMALE AND MALE

SOURCE : BAV - BRAND ASSET VALUATOR BY Y&R (France 2014, Spain 2015, Italy 2015, Germany 2014)


29 SOURCE : BAV - BRAND ASSET VALUATOR BY Y&R (France 2014, Spain 2015, Italy 2015, Germany 2014)

0

50

100

0 50 100

GEOX – KIDS 2 -11 YEARS OLDBR

AND

STRE

NG

TH

BRAND STATURE

NEW BRAND

NICHE BRAND LEADERSHIP

EROSION

MASS MARKET

UNFOCUSED BRAND

Low

High

Low High

CORE MARKETS REPRESENT THE HIGHEST POTENTIAL DEVELOPED BY THE BRAND WITH STRONG HEALTH ON

KIDS


30

RICHER THAN EVER BRAND IMAGE PROFILE IN ALL CORE EUROPEAN

MARKETSTOP SCORES ON SHOES PURCHASE KEY

DRIVERS OF► COMFORT► QUALITY

► WELL-ENDURING*SOURCE: IPSOS – ADVERTISING TRACKING UPDATE DECEMBER 2015.

AN OVERVIEW OF THE KEY FINDINGS IN ITALY, GERMANY, FRANCE, SPAIN.


31

KEY ADULT BRAND DIFFERENTIATORS IN ALL CORE EUROPEAN MARKETS

*SOURCE: IPSOS – ADVERTISING TRACKING UPDATE DECEMBER 2015. AN OVERVIEW OF THE KEY FINDINGS IN ITALY, GERMANY, FRANCE, SPAIN.

GEOX HISTORICAL PERSONALITY OF INNOVATIVE, RELIABLE, RATIONAL, PRAGMATIC, FAMILY, HEALTHY AND

INTERNATIONAL

new key assets, emerged during the last two years areworth more, socially responsible, dynamic, feeling

you can do more, high performance, well fitting

TO CLASSIC AND COOL

FEELING GOODQUALITY (MUMS)INDESTRUCTIBLE

(MUMS)

HEALTHIER AND RICHER KIDS BRAND THAN EVER

32

RADICAL BRAND APPEAL TRANSFORMATION:from 2008 «comfortable» and «the shoe that breathes» but

«serious» «for adults» «few colours» «chosen by the mum» «boring» «not cool»

SOURCES: IPSOS ADV TRACKING – DIC 2015 + BAV OCT 2015

*VERBATIM OF KIDS 4-10 Y.O. IN 50 FOCUS GROUPS

FUNA BRAND FOR ALL

COLOUREDIT’S FAMOUS

A LOT OF KIDS WEAR ITSOURCE: KIDS INTERNATIONAL QUALITATIVE RESEARCH 2008 (IT) + KIDS INTERNATIONAL 2015 (IT+ FR)


33

FAST GROWING CRM REDEMPTION THRU GEOX LOYALTY PROGRAM “BENEFEET” IN EUROPE

2015**2013*

1.4 Mio 2.9 MioLOYAL CUSTOMER BASE + 107%

€ 93 Mio € 207 Mio BENEFEET TURNOVER + 122%

27% 41%BENEFEET TURNOVER /GEOXSTORES’TURNOVER

+ 52%

CUSTOMER* RETENTION 22% 35% + 59%

VAR

*YEAR TO DATE NOV.2013 / **TURNOVER TOTAL 2015 SOURCE : BENEFEET DATABASE MANAGED BY VALUE LAB .PERIMETER: SUBSCRIBERS IN PARTICIPATING GEOX STORES ( DOS +FRANCHISING ) FROM THE LAUNCH IN AT, BE+LU, DE, ES, FR, GB, IT.


DIGITAL CENTRIC STARTEGY IS DELIVERING CONSTANT INCREASES IN ENGAGED AUDIENCE

GEOX SOCIALCOMMUNITY

ACROSS ALL SOCIAL TOUCHPOINTS

BENEFEETSUBSCRIBERS

GEOX LOYALTY PROGRAM

GEOX.COMUNIQUE VISITORS

WORLDWIDE

+ 37% YOY + 38% YOY + 24% YOY

34


35

GEOX SOCIAL IN 2015A POWERFUL COMMUNITY WITH AN ENGAGED

AUDIENCEOPENING SOON

+32%YOY

NUMBER OF CLICKS TO WEBSITE

FROM SOCIAL MEDIA ADVERTISING

SOURCE: GEOX ANALYSIS

+26% YOY

FACEBOOK ENGAGEMENT (LIKE, COMMENTS, SHARES,

VIDEO VIEWS)FACEBOOK

SOURCE: FACEBOOK

+429% ABOVE THE FASHION INDUSTRY AVERAGE:

FACEBOOK INTERACTIONS (LIKES, COMMENTS,

SHARES)

SOURCE: SOCIAL BAKERS

36

CHINA FOCUSA GROWING BRAND BOTH IN

AWARENESS AND POSITIONING

0%

10%

20%

30%

40%

50%High quality shoes

Improve breathability

Comfortable shoes

Trustworthy brand

Long lasting products

Range of women's shoesFashionable brand

Well-fitting shoes

Features unique and peculiar

Innovative brand

Shoes particularly beautiful

Products for the whole family

FW15 FW14

TOP BOX* %

GEOX BRAND IMAGE IN CHINA

37 *SOURCE: IPSOS – ADVERTISING TRACKING UPDATE DECEMBER 2015

GEOX RECOGNISED AS BREATHABILITY

UNIQUENESSTRUSTFULNESS.

GEOX AWARENESS ARE INCREASING RAPIDLY OVER TIMEGENERAL BRAND AWARENESS OF GEOX FROM 32% ( FW14) TO 42% ( FW15)

BRAND HEALTH SUMMARY

38

RICH BRAND PERSONALITY SHOWING STRONG DISTINCTIVE «CONTEMPORIZATION» AND «HIGHER PERCEIVED VALUES» OVER THE

PAST TWO YEARS

GROWING CONSUMER LOYALTY WITH UNTAPPED POTENTIAL IN CORE MARKETS

DIGITAL CENTRIC STARTEGY IS DELIVERING CONSTANT INCREASES IN ENGAGED AUDIENCE

A HEALTHY GROWING BRAND WITH TOP SCORES ON AWARENESS, KEY REQUIREMENTS INDICATORS AND BRAND EQUITY,

BOTH STRENGTH AND STATURE ON ALL CORE MARKETS

KEY TAKE OUTS

39

THE NEW STRATEGIC CYCLE 2016-2018

ON TOP OF CONTINUING THE IMPROVEMENT OF SIMPLIFICATION, FOCUS, SKILLS AND

SPECIALIZATION

WILL ADDRESS THE NEXT STEP TOWARDS A WORLD CLASS BRAND DEVELOPMENT AND A MORE AGILE AND FLEXIBLE BUSINESS MODEL

40

THE EVOLUTION OF GEOX DNA FUNDAMENTALS FOR

THE SMARTS OF TODAY AND TOMORROW

Geox

design

industrialise, source,

deliver shoes & outerwear

utilising patented breathing system

THE STARTING POINT: THE BRAND THAT BREATHES WITH YOU

41

OUR PURPOSE

42

WE ARE TO DELIVER STATE OF THE ART BREATHABLE WELLBEING HIGH

PERFORMING SHOES AND JACKETS DESIGNED AS DISTINCTIVE ITALIAN

CONTEMPORARY ITEMS

Enhancing everyday quality of life through our products and the way we operate

OUR BRAND EVOLUTION

43

GEOX AIMS TO REPRESENT THE OVERLAP OF PERFORMANCE AND CONTEMPORARY EVERYDAY TRENDSPERFORMANCE PRODUCTS DESIGN

CONTEMPORARY FASHION DESIGN

ITALIAN KNOW HOW

SPORT ARENA FASHION ARENA

QUALITY

STYLE

AESTHETIC

TECHNOLOGY

FUNCTIONAL DESIGN

INNOVATION

PROTECTION

BREATHABILITY

GRIP

FLEXIBILITY

LIGHTWEIGHT

DESIGN

DAY WORK

ELEGANCE

CRAFTMANSHIP

COMFORT

OUR BRAND DNA EVOLUTION

44

TO A HIGH CONFIDENCE BRAND THAT REPRESENTS THE DAILY LUXURY TREAT

THAT EVERYBODY CAN AFFORD AND THAT WILL ENHANCE THEIR EVERYDAY

LIFE

FROM A FUNCTIONAL BENEFIT BRAND

OUR BRAND DNA EVOLUTION PILLARS

45

1

ITALIAN CONTEMPORARY DESIGN2

UNCOMPROMISED SUSTAINABLE QUALITY3

SEAMLESS “PHYGITAL” ASPIRATIONAL USER JOURNEY4

CONSUMER RELEVANT DISRUPTIVEINNOVATIVE PRODUCT STORIES

FROM TECHNOLOGY AND BENEFITS

46

GEOX PATENTS AS SIGNATURE OF TECHNOLOGY, STYLE, UNIQUENESSAND RELENTLESS INNOVATION

CUOIO IMPERMEABILE

1.2. CONSUMER RELEVANT DISRUPTIVE INNOVATIVE PRODUCT STORY + ITALIAN CONTEMPORARY DESIGN

47

MADE TO BREATHEVERYDAY MULTIPURPOSE ALL

YEAR ROUND SHOETHE ONE SHOE TO HAVE IN YOUR

LUGGAGE


48

3D BREATHING ENGINEERING

3D PERFORMANCE UNIT


49

GEOX UNIQUE DESIGN WITH ENHANCED PERFORMANCE FEATURES

NORDPLUS


50

2. ITALIAN CONTEMPORARY DESIGN

51


52

1




53

Sustainability in Geox is a behaviour which embraces stakeholders interest that drives the growth of our company as well as the world around us

WE ARE COMMITTED TO DELIVERING HIGH QUALITY PRODUCTS WHICH COMES FROM FAIR WORK CONDITIONS AND ADVANCED,

SUSTAINABLE AND ENVIRONMENTAL RESPECTFUL PRODUCTIVE PROCESSES.


GEOX INSPIRED: ACTIVITIES IN PLACE

54

MATERIALS

DESIGN

ENVIRONMENT

SUPPLY CHAIN

SOCIAL

PEOPLE & CULTURE

55

ACTIVITIES IN PLACE: MATERIALS HIGH QUALITY APPROACH

FW16: GEOX WILL BE THE FIRST BRAND TO BE AWARDED WITH TUV SUD FOOTWEAR

CERTIFICATION

MATERIALS: HIGH QUALITY APPROACH TUV SUD CERTIFICATION

• TÜV SÜD IS ONE OF THE WORLD’S LEADING TECHNICAL SERVICE PROVIDERSOF TESTING, PRODUCT CERTIFICATION, AUDITING, SYSTEMS CERTIFICATION, TRAINING AND KNOWLEDGE SERVICES.

• THE FOOTWEAR CERTIFICATION AND MARK MEANS THAT GEOX HAS COMPLETED A COMPREHENSIVE TESTING AND FACTORY INSPECTION PROGRAM TO SAFEGUARD AGAINST HAZARDOUS CHEMICALS.

ACTIVITIES IN PLACE: CSR

56

• ALL MANUFACTURING PARTNERS HAVE SIGNED THE GEOX CODE OF CONDUCT;

• WITHIN 2016 ALL MANUFACTURING PARTNERS WILL BE AUDITED;

• SUSTAINABILITY HAS BEEN INTRODUCED TO THE SUPPLIER EVALUATION PROCESS WITH A

CO-EVOLUTION OBJECTIVE.

ACTIVITIES IN PLACE: BUSINESS MODEL TO INCLUDE YOUNG PEOPLE WITH INTELLECTUAL DISABILITIES

57

BORN IN 2014, TODAY IT REACHED ITS 5TH EDITION

2015 OPENING OF A SOCIAL GREENHOUSE IN PADOVA, AS AN OPPORTUNITY FOR LABOR INCLUSION TO PEOPLE

WITH INTELLECTUAL DISABILITIES

2015 GEOX FOR VALEMOUR COMPETITION, TO STIMULATE NEW JOB INCLUSION PROJECTS. WE

ALREADY RECEIVED 98 APPLICATIONS.

GEOX FOR VALEMOUR : A UNIQUE, TRUE NEW BUSINESS MODEL

FOCUSED ON THE SOCIAL AND LABOR INCLUSION, IT BOUNDS THE TWO SOULS PROFIT AND NO PROFIT,

PROVIDING A REAL WORK OPPORTUNITY TO YOUNG PEOPLE WITH INTELLECTUAL DISABILITIES


58

1



SEAMLESS “PHYGITAL” ASPIRATIONAL USER JOURNEY4


FROM THE SHOE THAT BREATHS

OUR BRAND EVOLUTION

TO ASPIRATIONAL ITALIAN STYLETO WELLBEING THAT EMBRACES

BREATHABILITYTHERMAL REGULATION

VENTILATIONCOMFORT

SUSTAINABLE PRODUCTS TO PERFORMANCE

TO PRODUCT CONTENT AND STORYTELLING

FROM TRADITIONAL

OUR BRAND EVOLUTION

60

TO SEAMLESS DIGITAL AND PHYSICAL EXPERIENCE

FROM FUNCTIONAL AND TECHNICAL

OUR BRAND EVOLUTION

TO EMOTIONAL, ENGAGING, EYE CATCHING CONTENT STORY TELLER

61

FROM ONE WAY

OUR BRAND EVOLUTION

TO RELATIONSHIP

62

FROM MAINSTREAM FOCUS

OUR BRAND EVOLUTION

TO ASPIRATION DRIVEN

63

ASPIRATIONAL PRODUCT AND BRAND

OUR BRAND EVOLUTION

64

WORLDCLASS BRANDHIGHER DEMAND

HIGHER PERCEIVED VALUEHIGHER AVERAGE PRICE

MARGIN INCREASE

THE EVOLUTION OF OUR FOCUSED AND SPECIALISED

STRATEGY

OUR BUSINESS MODEL EVOLUTION

65

MARKET CENTRIC STRATEGY: GEOX FOCUS

MARKET POTENTIAL

LOW

HIGH

LOWGEOX BRANDAWARENESS

HIGH

CORE MARKETSDEVELOPMENT MARKETS

ITALY

FRANCE

IBERIA

GERMANY

SHANGHAI

BEIJING

HK

SOUTH KOREA

CHINA

RUSSIA USA

UK

CANADA

BELUX

SINGAPORE

GREECE

PENETRATION MARKETS

INDONESIA

AUSTRIA SWITZERLAND

66

OUR BUSINESS MODEL EVOLUTION PILLARS

67

1

2

3

4

FLEXIBILITY & EFFICIENCY

RETAIL BUSINESS MODEL TO WHOLESALE

KEY STRATEGIC WHOLESALE PARTNERSHIPS

OFFER AND DISTRIBUTION SEGMENTATION

1. OFFER AND DISTRIBUTION SEGMENTATION

HIGH

PREMIUM

PRICERANGE

MEDIUM

ENTRYK ACC MASS

SPECIFIC PROJECT

KEY ACCOUNTS

MASS

PRICE DRIVEN «BOXES»

TALENT SCOUT / OPINION LEADERS

KEY ACCOUNTS

CONTEMPORARYINDEPENDENT MONOBRAND

RETAIL

OFFER SEGMENTATION DISTRIBUTION ON/OFF-LINE SEGMENTATION

CORE OFFER

RADICAL INNOVATIONSPECIFIC PROJECTS

K ACC MASSSPECIFIC PROJECT

CORE OFFER

RADICAL INNOVATIONSPECIFIC PROJECTS

68

THE WORLD HAS CHANGED AND WILL CHANGE EVEN FURTHER

2. FLEXIBILITY & EFFICIENCY

SEAMLESS MULTICHANNEL REALITY

ON-LINE AND OFF-LINE INTEGRATION

US DOLLAR STRENGTH CHANGE MORE THAN A DECADE OF SOURCING PRACTICE

NEW RETAIL AND COMPANY REQUIREMENTS

69

FLEXIBILITY TO CATCH MARKET TRENDS AND REDUCE RISKS

FLEXIBLE SOURCING PLATFORMS TO BALANCE CURRENCY VOLATILITY

REDEFINE B&M MONOBRAND ROLE

SEASONAL COLLECTION

NOS

CARRY OVER

SEASONAL CORECOLLECTION

NOS

CARRY OVER

NOW PRODUCTSSTOCK ON HANDREDUCTION

LONG LIFE CYCLE

PLANNED SUPPLY CHAIN ACTIVITIES

TO INCREASE MARGINS

REACT TO TRENDREDUCE OVERBUYING RISK

1. INTRODUCE “NOW PRODUCTS” TO CATCH THE RIGHT TREND WITH FAST LANE APPROACH AND LOW INVENTORY RISKS

2. MAXIMISE THE CORE BEST SELLERS THROUGH REPLENISHMENT

3. SPECIALIZED SUPPLY CHAIN TO BETTER SERVE THE MARKET NEEDS AND DELIVER BETTER MARGINS

2. FLEXIBILITY TO CATCH MARKET TRENDS AND REDUCE RISKS

70

71

2. FLEXIBILITY: SOURCING

1. REDUCTION in sourcing from CHINA2. INCREASE in sourcing from «DUTY FREE»

AREAS and other ASIAN COUNTRIES OFFERING MORE COMPETITIVE COSTS

3. INCREASE sourcing from EUROPE to favourfast replenishment and an INCREASING PERCENTAGE OF OWN PRODUCTION

71

2. FLEXIBILITY: MONOBRAND STORES

1. NEW, MORE STRICT FWC CRITERIA2. FURTHER MONOBRAND RATIONALIZATION

3. NEW RETAIL FORMAT4. BRANDED SPACE MANAGEMENT: SIS AND

CORNERS DEVELOPMENT WITH KEY PARTNERS

MONOBRAND BRICK & MORTAR STORES WILL EVOLVE TO A DIFFERENT ROLE AS A PART OF A SEAMLESS OMNICHANNEL REALITY

72

3. RETAIL BUSINESS MODEL TO WHOLESALE

DOS

CONCESSIONS/ CORNERS

CONSIGNEMENT CORNERS/

SPACES

EDI CONNECTED

STORES

KEY DOORS

BRANDED MANAGED SPACEFULL PRICE SELL-THRU FOCUSED

CORE & NOW PRODUCTSINTEGRATED IN-SEASON MANAGEMENT

E-COMMERCE

MONOBRAND STORES KEY DISTRIBUTOR PARTNERSMONOBRAND STORESKEY DISTRIBUTOR &

WHOLESALE PARTNERSON AND OFF-LINE

FRANCHISING

GEOX RETAIL BUSINESS MODEL

THE SEAMLESS REALITY WILL CHALLENGE THE BOUNDARIES OF TODAY’S BUSINESS REALITY

4. KEY STRATEGIC WHOLESALE PARTNERSHIP

DEFINE CLEAR ALLIANCES WITH THE KEY RETAIL PLAYERS OF THE INDUSTRY TO BETTER COOPERATE IN

CREATING A WINNING BUSINESS MODEL IS KEY

KEY PARTNERSHIP WITH ON AND OFF-LINE ARE ALSO KEY TO OUR FURTHER DEVELOPMENT ACCELERATION

IN EVERY COUNTRY WE OPERATE

74

SEGMENTED SELL-THRU FULL PRICE FOCUSED BUSINESS MODEL

OUR BUSINESS MODEL EVOLUTION

FOSTER GROWTHENHANCED BRAND AND PRODUCT

PRESENTATIONHIGHER AVERAGE PRICES

LOWER INVENTORIESBETTER MARGINS

75

76

ACTIVITIES IN PLACE: PATH TO NEW BUSINESS MODEL

2016 2017

EXTENDED AGGRESSIVE ISM TEST

NEW RETAIL FORMAT TEST

«NOW» & «CORE»PRODUCTS PROCESS TEST

«NOW» & «CORE» PRODUCTS ROLL-OUT

NEW SIS&CORNERS FORMAT TEST

NEW RETAIL FORMAT ROLL OUT

NEW SIS & CORNERS FORMAT ROLL OUT

KEY STRATEGIC PARTNERSHIPS IN PLACE

SEGMENTATION IN PLACE

KEY TAKE OUTS

we built a solid foundation for profitable, sustainable, brand-led and market-centric growth

we believe the current macro environmentand competitive landscape creates untapped

opportunities we are poised to exploit

77

Cesare FranchinaVP Brand

THE 3 TOPICS

79

THE STRATEGIC DRIVERS TO FUEL THE BUSINESS THRU BRAND EQUITY AND PROFITABILITY

BREATHABILITY‘’DNA CANNOT CHANGE … IT CAN EVOLVE’’

REINFORCE CREDIBILITYENHANCE THE VALUE OF OUR PRODUCT AND BRAND STATURE

OUR DNA

‘’DNA CANNOT CHANGE… IT CAN EVOLVE’’

80

OUR DNA

81

BREATHABILITYFOR US MEANS

IMPROVE EVERYDAY PEOPLE LIVES THRU WEARABLE WELLBEINGand CONTEMPORARY STYLES

WHO WE ARE

82

INNOVATORS

WHO WE ARE

ON BREATHABILITY & WEARABLE WELLBEING

83

QUALITY, COMFORT and PERFORMANCE in STYLE

HIGH CONFIDENCE BRAND

WHO WE ARE

84

OUR CONSUMER‘’AN HIGH CONFIDENCE BRAND

CREATES STRONG LOYALTY’’

85

OUR CONSUMER

GEOX HOLDSA WIDE‘’VARIETY’’ OF AUDIENCES

A MULTIAGE CORE TARGET

41% ARE ALREADY CONSOLIDATED BRAND LOYAL

0-12 30-70

86

OUR CONSUMER

THEY CARE… INNOVATION & WELLNESS

HEALTH CONSCIOUS, SOCIALLY RESPONSIBLEWORTH MORE

THEY ARE…IN METROPOLITAN KEY CITIES

RATIONAL AND FASHION AWARESMART AND DYNAMIC

* CORE TGT: 30-70 YRS OLD87

WHAT WE DO

88

WHAT WE DO

EVERYDAY PRODUCTAN UP TO DATE ITALIAN DESIGN

89

WHAT WE DO

CONTEMPORARY

IRRESISTABLE COMFORT COMFORT

CONTEMPORARY

SUSTAINABLE

LIGHT DRYFEELING

DURABLE

BREATHABLE

WATERRESISTANT GRIP

STABLE EASY TO

WEAR

FOR A LONG LASTING WEARING EXPERIENCE

90

WHAT WE DO

PATENTSTHE SIGNATURE FOR

TECHNOLOGY AND RELENTLESS INNOVATION

91

WHAT WE DO

92

TAILOR MADE PRODUCTSFOR EACH FAMILY MEMBER

MEN’S, WOMEN’S & KIDS’IN EACH MARKET WE OPERATE

TO CREATE VALUEIS REINFORCING OUR

CREDIBILITY

93

WHAT WE DID MORE…

WHAT WE DO MORE… WE CREATE VALUE

94

THERMAL REGULATIONNOT ONLY AN IMPROVED MEMBRANE

BUT ALSO VENTILATION AND INSULATION

PERFORMANCE… GRIP, STABILITY , WATERPROOF

HIGHER FOOTBED FOR BETTER POSTURE

SUPERIOR COMFORTCONSISTANCY ON FIT, SOFT MATERIALS,

CUSHIONED AND SUPERLIGHT BOTTOM & FOOTBED

UNIQUE DESIGN… DISTINCTIVE ITALIAN DESIGN

MATCHING FASHIONABILITY & FUNCTIONALITY


95

QUALITY:GEOX TRANSPIRATION INDEX , MONITORED MATERIALS & TANNERIES,

NATURAL CHROME FREE FOOTBED FOR KIDS

SUSTAINABILITYCERTIFIED PRODUCT LIFECYCLE AND MATERIALS (TUV, SATRA..)

REDUCTION OF OVERLAYING & STITCHES


96

RE-IGNITE ATTENTION ON LIGHTS

SHOES KID’S LIKES:COOL & EYE CATCHING

TO PLAY & FUNWITH A ‘’SHOE LIKE SOUL’’

BEST IN COMFORT

THE MOST PREFERRED CHOICE BY OUR WOMEN’S CONSUMERS

WOMENS’BEST IN DESIGN


97

INNOVATED STYLEON EXISTING PATENTS

CONTEMPORIZING PRODUCTS WITH ADDITIONAL BENEFIT COMING FROM USAGE OF CORE PATENTS


98

PORTFOLIO DRIVERS

A FULL YEAR INNOVATION SCHEDULE

PRELAUNCH

BACK TO SCHOOL + CHROME FREE LEATHER INNERS

PROJECT & STORYTELLING SCHEDULE

SUSTAINABILITY

INNOVATION

TO ENGAGE CONSUMERS


99

2012

SS62%

FW38%

* ref: whl uts - worldwide

2015

SS55%

FW45%

SHIFTING FW SEASON FROM …

TO


100

MASTER ON CORE PRODUCTA DISTINCTIVE ITALIAN DESIGN,

Geared by performance features

AN UP TO DATE WOOL COAT BREATHABLE, SUPERLIGHT

WATER REPELLENT

.THE PROMISE OF 2013 BUSINESS PLANTHE PRECURSOR OF A NEW PDT CATEGORY

A FOUR SEASON SHOE CONVEYING: • ALL MAIN RELEVANT TECHNOLOGIES

• ALL MAIN PRODUCT FEATURES• FOR CONTEMPORARY WALKERS


101

MASTER ON CORE PRODUCTA DISTINCTIVE ITALIAN DESIGN,

Geared by performance features

BRAND

102

FUEL BUSINESS PLAN 2016-18BEYOND

THE BROWN SHOE SEGMENT

BRAND

103

DEVELOPCONSUMER CENTRIC PROJECT

TO REDUCE RISK AND CREATE SUCCESSFUL STORYTELLING

DEVELOP CONSUMER CENTRIC PROJECT

PRODUCT DESIGN

PRODUCTENGINEERING

LAB TESTINTERNAL WEARING TESTEARLY VALIDATION FROM CUSTOMER SPECIALIST

Product PRELAUNCHIn segmented distr.

Product LAUNCH

INVESTIGATE

ACTI

VATE

ENG

INEERIN

GSpecific Consumer Research

MKTG LaunchTRUE STORY TELLING

TRY ON

FROM NEEDS TO INNOVATIVE

SOLUTIONS

FROM NEEDS TO

DELIVERABLES

104

A REVERSED ENGINEERING

BRAND

105

THE STRATEGIC DRIVERSFOR BRAND EQUITY

AND PROFITABILITY

2016/18 THE STRATEGIC DRIVERS

8

INCUBATORS-> TO SHOWCASE

NEXT INNOVATION

ACCELERATORS-> TO BUILD BRAND &

AVG PRICE

ESTABLISHERS-> TO DRIVE MARGIN S

WOMAN 2.0CONTEMPORARIZATION

REIGNITELIGHTS

STRATEGIC DRIVERS PROJECTS

CONSOLIDATED BEST SELLERSON ADULTS & KIDS

MEN’S FORMAL

THE INCUBATORS: SHOWCASE THE FOREFRONT OF THE NEXT INNOVATION

107

LOW IMPACT: Limited number of components

Limited consumption of glue &Energy

NATURAL:Metal free leather (ICEC)

Natural rubber sole - 100% recyclable

CONSUMER FOCUS: HEALTH CONSCIOUS COMMUNITY

THE INCUBATORS: SHOWCASE THE FOREFRONTOF THE NEXT INNOVATION

108

NEW :DOIT’S NOT JUST ABOUT

A NEW PRODUCTIT’S A NEW BEHAVIOUR

A NEW WAY TO DO THINGS

3D BREATHING ENGINEERINGNet outsole and inner breathing lining

3D PERFORMANCE UNITIt’s about Engineering Comfort

Flexibility, cushioning, stability & grip

AVAILABLE FORMEN’S, WOMEN’S, BOYS’ & GIRLS’

AVAILABLE ONFOOTWEAR & APPAREL

THE ACCELERATORS: TO DRIVE GROWTH, AWARENESSAVERAGE PRICE & MARGINS

109

110

WELL-THNESS INSPIREDA NEW WAY OF THINKING A

WALKING SHOE

IMPROVE BREATHABILITY,

FLEXIBILITY & STABILITY

BEST IN STYLE, COMFORT and LIGHTNESS


110

111


THE WATERPROOF TECHNOLOGY ON STYLE

ALL WEATHER – ALL SEASONSALL COLLECTIONS111

ITALIAN FORMAL ELEGANT DESIGN

WITH TECHNOLOGICAL FEATURES

FUNCTIONAL DESIGN:MADE IN ITALY

LEATHER WATERPROOF SOLEGRIP DESIGN

for a non slipperyoutsole


112


113

WOMAN 2.0 CONTEMPORARIZATION

* SELL IN CAMPAIGN / UTS

** SELL OUT on RTL UTS: ALL MKTS (NO OUTLET)


RE-IGNITE ATTENTION ON

LIGHTS

SHOES KID’S LIKES:COOL & EYE CATCHING

TO PLAY & FUNWITH A ‘’SHOE LIKE CARE’’

114

THE ESTABLISHERS MARGIN BUILDERS TO MAXIMIZEGROSS MARGINS

THE BEST OF GEOXCONSOLIDATED BESTSELELRS

CORE OF GEOX DNA‘’ANCHOR’’ SPACE

LONGLASTINGEXCELLENCE ON STANDARDS

116

MIRRORING PRODUCTS MOM’s & DAD’s LIKE

THE ESTABLISHERS MARGIN BUILDERS TO MAXIMIZEGROSS MARGINS

MARKETING PRESENTATION

Giovanni Peracin,

VP MARKETINGAND COMMUNICATION

MASTER THE GEOX DNA FUNDAMENTALS TO GROW

AGENDA

2013-2014: CONTEMPORIZING THE BRAND - RE-CREATING THE “TRUST”

2015-2016: FROM TECH/PRODUCT CENTRIC TO HUMAN CENTRIC

COMMUNICATION

2018: TO BE A MULTILOGUE MULTI CONTENT FOR MULTIAUDIENCES

2013-2014: CONTEMPORIZINGTHE BRAND – RE-CREATING THE “TRUST”

2013-2014 COMMUNICATION FOCUS

•BREATHE AT THE CENTER•SHOWING THE PRODUCTS AND STYLES•NEW PROJECTS (AMPHIBIOX)•CHINA: RE-BUILDING THE BRAND IMAGE WITH LOCAL CELEBRITIES

•WEB AND SOCIAL START UP

RE-CREATING THE “TRUST “ AND “CONTEMPORIZING”THE BRAND

SETTING THE BASE FOR A DIGITAL DRIVEN COMMUNICATION

120

2015-2016: FROM TECH/PRODUCT CENTRICTO HUMAN CENTRIC COMMUNICATION

IT’S A «MULTILOGUE» UNFOLDING IN REAL TIME ACROSS A NETWORK OF MEDIA-TECHNOLOGY PLATFORMS WHERE CONSUMERS ARE ACTIVE

PARTICIPANTS

THE CONSUMER JOURNEY GOES THRU MORE THAN 20 TOUCHPOINTS RANGING FROM INTERNET SEARCHTO SOCIAL MEDIA TO STORE VISITS

2015-2016 THE WORLD HAS CHANGED

122

•HIGH QUALITY STORY TELLING CONTENTS FOR DIFFERENT AUDIENCES

•BE CONSISTENT IN EVERY TOUCHPOINT•DEVELOP A NEW COMMUNICATION PLATFORM FOR A NEW BRAND PERCEPTION AND BRAND ADVOCACY

•CREATE THE COMMUNITY

2015-2016 A NEW MARKETING MODEL

FROM A TECH/FUNCTIONAL COMMUNICATION FOCUS TO AN EMOTIONAL, ASPIRATIONAL

“MULTILOGUE”

123

ITALY

IBERIAN

DACH

FRANCE

2015-2016 FOCUS ON 8 KEY COUNTRIES

124

CORE POTENTIALUK USA RUSSIA CHINA

WE HAVE TO BE AS MUCH A PUBLISHING MEDIA CONTENT COMPANY AS WE ARE A DESIGN AND R&D COMPANY ANDA DISTRIBUTION COMPANY


WE CREATE HIGH QUALITY STORYTELLING FOR A FAST MOVING AND FRAGMENTED

ECOSYSTEM

125

2015-2016 INTRODUCING LIFESTYLE CONTENTS:BREATHE MAGAZINE

126

2015-2016 INTRODUCING LIFESTYLE IMAGESIN THE STORES AND STORY TELLING

127

2015-2016 BE CONSISTENT IN EVERY TOUCHPOINT

Make Geox as accessible as possible – expanding touchpoints

• Breathe Magazine: Mobile Lifestyle Shopping APP

• Geox Kids Books: Platformof interactive books for Kids

• Geox Watchface: Wellness meets style for AndroidWear watches

APPS• GEOX.COM integrated brand and e-com platform• GEOX.BIZ dedicated site for IR and Corporate• Mini-Sites to experience specific projects

(Nebula, Sustainability, Valemour….)

MOBILE-READY WEBSITES

• Global and Local strategy for a relevant presence in all key markets

SOCIAL• Direct e-mails & SMS for Benefeet Loyalty customers• Direct e-mails for Geox.com Subscribers

DEM & SMS

RETAIL SIGNAGE& INTERACTIVE SCREENS

128

A FAST- GROWING COMMUNITY (2.9 Mio)+ 107% in 2015* vs 2013

A HIGH CUSTOMER RETENTION : 35% (22% in 2013)

SOURCE: Benefeet database managed by Value lab . PERIMETER:Subscribers in participating Geox stores ( DOS +FRANCHISING) from the launch in AT, BE+LU, DE, ES, FR, GB, IT. *Turnover ytd 2013 ( WK1-WK42) ** Turnover total 2015

INCIDENCE ( %) BENEFEET TURNOVER 41% (2015)

On the Geox store turnover (27% in 2013)

2015-2016 REINFORCING OUR RELATIONSHIP WITH OUR LOYAL CUSTOMERS

129

2015-2016 BUILDING BRAND ADVOCACY

130

Increase Brand Awareness and Brand Affinityby partnering with Credible Bloggers and Influencers

THE KSF OF A STORY IS A STRONG ANDEMOTIONAL EYE CATCHING VISUAL AND COPY

TO CATCH THE ATTENTION IN 1 SECGREAT SOUND TO DRIVE EMOTIONS

GREAT STORYTELLING TO CREATE REAL ENGAGEMENT

DIGITAL WORLD IS A LOT ABOUT EMOTIONS, PROXIMITY, REACTIVITY. IT REQUIRES A DIFFERENT OPERATING MODEL FOR PRODUCING CONTENT


131

It’s A Call To Action To Be More Mindful Of How You’re Spending Your Life,

Be More Active An Invitation To Start Breathing With

Geox

2016 A NEW PLATFORM OF COMMUNICATION

132

2016 PRESENT THE SUSTAINABILITY ATTRIBUTES AND BENEFITS OF OUR PROJECTS IN A WAY WHICH IS DESIRABLE AND ASPIRATIONAL

NEW:DO IS THE FIRST SHOE FROM OUR SUSTANAIBILITY INSPIRED RANGE.

A LINE DESIGNED TO WORK IN HARMONY WITH YOUR LIFE AND THE

WORLD YOU LOVE.133

134

2016 PRESENT THE SUSTAINABILITY ATTRIBUTES AND BENEFITS OF OUR PROJECTS IN A WAY WHICH IS DESIRABLE AND ASPIRATIONAL

ASSOCIATING NEBULA WITH STRIKING, AVANT-GARDE FORMS OF MOVEMENT

SUCH AS DANCE. GIVING EXPRESSION TO THE EXCITING POSSIBILITIES THAT CAN

HAPPEN WHEN YOU #STARTBREATHING.


135

A PRODUCT LED ROUTE FOR A MASS AUDIENCE THAT INTRODUCES NEBULA’S

BREATHABLE SOLE.


137

2016 BE RELEVANT IN THE MOST IMPORTANT CITIES WORLDWIDE

139

SEOULNEW YORK MILAN

MADRID

LONDON BERLIN

SHANGHAI

PARIS

HONG KONG

MOSCOW

2016 MULTIAUDIENCE APPROACH VIA A SEGMENTETED MEDIA STRATEGY

141

Leading edgeMagazine, bloggers

Fashion Magazines, Facebook, Instagram, Social Media,Product Placement

Opinion Leaders

Fashion aware, Younger audience

Mainstream Outdoor, Web site dominations

PRIORITY IS THE IMPLEMENTATIONOF A HIGHLY ENGAGING CONTENT

STRATEGY GIVEN THE MULTIPLICITY OF PLATFORMS ON WHICH THE BRAND NEEDS

TO BE PRESENT

2016 A NEW MARKETING MODEL

COMPLETE CONSISTENCY AND COHERENCE ACROSS ALL OF BRAND’S CONSUMER TOUCHPOINTS BECOMES CRITICAL

142

2016 CREATING A HIGH ENGAGING CONSUMER CENTRIC CONTENT ACROSS ALL THE TOUCHPOINTS ALONG THE USER JOURNEY

143

2016 NEBULA SOCIAL STRATEGY

144

100+ CONTENTS COVERING THE COMPLETE CUSTOMER JOURNEYWith TARGETED STORYTELLING

OPENING SOON

2018: TO BE A MULTILOGUE MULTI CONTENT FOR MULTIAUDIENCES

2018 OUR CHALLENGE: A SEAMLESS CUSTOMER EXPERIENCE

COMPELLING INNOVATIVE PRODUCT RANGE CLEARLY POSITIONED FOR A WELL DEFINED AUDIENCE

ENGAGING, RELEVANT AND CONSISTENT STORIESTO TELL

EMOTIONALLY STRONG VISUAL, PHOTOGRAPHY, FILM, COPY AND SOUND CONTENTS

WEBSITE GEOX STORES

MULTIBRAND STORES

MOBILESTORE KIOSKS

E-MAIL SOCIAL MEDIA

CUSTOMER CARE

DIGITAL PRINT

SEARCH

148

• 2013-2015 CONTEMPORIZING THE BRAND, SHOWING THE PRODUCT/NEW PROJECTS, THE STYLE, RE-CREATING THE “TRUST” AND SETTING THE BASE FOR A DIGITAL DRIVE COMMUNICATION

• 2016-2017 FROM TECH/PRODUCT CENTRIC TO HUMAN CENTRIC COMMUNICATION, HIGH QUALITY STORYTELLING CONTENTS FOR ALL THE TOUCHPOINTS. BE MORE EMOTIONALLY AND ASPIRATIONALLY ENGAGING

• 2018 TO BE A MULTILOGUE MULTI CONTENT FOR MULTIAUDIENCES

CONCLUSION

A SEAMLESS AND OMNICHANNEL BRAND EXPERIENCE

149

Emanuele Malacarne

VP – PRODUCT DEVELOPMENT

WHAT WE DELIVERED

151

Reduced the COMPLEXITY

Enhanced the QUALITY

Implemented COLLECTION PLANNING & MONITORING systems

Perfected the DESIGN TO COST

Levereged on INNOVATION

83% carry over outsoles Investments only in key strategic projects Reduce by 44% number of raw materials

Strongly specialized Pdt Dvlp Organization 100% certified raw materials sourcing plat Increase to 55% the carry over materials

PLM fully implemented Introduction Geox Inspired Design Tool

Effective and tangible results coming from very close collaboration with Opt and Vendors

Implemented engineering process matching performance expectations with a consumer centric approach

152

We built an efficient and effective ENGINE Now is time to boost a SUSTAINABLE GROWTH

WHAT WE PROMISE NOW

153

FUEL RETAIL PERFORMANCE

DRIVERS INITIATIVES

EFFICIENCY

ENABLERS

PROFITABILITY

GROWTH

INNOVATE THE ENGINEERING

QUALITY & INNOVATION

OUTSOLES PERFORMANCE

• Material sourcing optimization• Material Certification Process• Digital Outsole

• New collection development model

• OUTSOLE PERFORMANCE SEGMENTATION

• GLOCAL – FIT ProgramSECURE THE BUSINESS

AND LOCALIZE

• GEOX – FIT Program

2018

2018

2018

2016

2016

2016

2016

154

Our SHORT TERM achievements

WHAT WE PROMISE NOW

155

DRIVER HOWWHAT

PROFITABILITY

Material sourcing optimization:Reduce leftovers coming from prototypes dvlp and sales men samples

Regulate and monitor material color/chart setting

Revise the process of the sample leather process by an actual “where used” basis approach

* SS17 Order Size Adjusted to reflect forecasted order on Second Exit

PROFITABILITY

Material Certification Process:Efficient internal process to shorten our collection development Lead Time

Anticipate leather quality and style certification for nominated materials, during sms launching

Anticipate nominated materials unlocking for bulk orders

WHAT WE PROMISE NOW

156

DRIVER HOWWHAT

GROWTH

New collection development model:transform collection development process to better serve the different needs of distribution channels (both Wholesales and Retail)

Clearly identify a proper selection of “NOS and Carry Overs”

Earlier go-to-market with “Core Collection” in one exit

Introduce monthly capsules of “Now Products”

CORE

C.O. & NOS

NOW PRODUCTS

WHAT WE PROMISE NOW

157

DRIVER HOWWHAT


GEOX – FIT Program:Standardize GEOX Lasts Volumetric measures securing the constancy on fit

• Creation lasts 3D digital database and standardization

• Digital engineering and modification with 3D CAD

• Electronic Transmission to certified and nominated suppliers

Higher control and qualitydue to electronic engineering and nominated suppliers

158

Our MEDIUM TERM ambitions

WHAT WE AIM TO ACHIEVE

159

DRIVER HOWWHAT

PROFITABILITY

3D-Digital Outsole:reduce Lead Time of innovation and fitting process by creating sole mock ups with 3D-digital models and printing

3D-CAD designs (Mock-Ups) for NOW PRODUCTS in-house realization

3D Print of the outsoles for the INDUSTRIAIZATIONS

3 advantages Reducing industrialization lead time Guarantee a quick response in NOW

PRODUCT development Get a quicker and more efficient

decision making process to access the real profitability of each project


160

DRIVER HOWWHAT

GROWTH

GLOCAL – FIT Program:standardize GEOX lasts volumetric measures in each strategic market

Acquisition of biometric consumer data (Shop Foot scanner) into strategic market

Population of database for each strategic market

Last development according to market needs

Increased customer engagement

and in store Experience

Increased market penetration especially

trough E-commerce


161

DRIVER HOWWHAT


OUTSOLE PERFORMANCE SEGMENTATION: certify GEOX outsole excellence in terms of performance features setting a new market benchmark

Benchmark the market and position our excellence

Identify and certify key performance drivers in GEOX portfolio

Organize a segmented offer according to the end use

Set a new benchmark in outsole

performance

Gain a competitive advantage from existing assets

WRAP-UP: WHAT MUST YOU REMEMBER OF THIS?

162

What we achieved2015 vs BP2013

We reduced the COMPLEXITY, enhancing the

QUALITY and ensuring a proper SPECIALIZATION

Focus on PROFITABILITY and CHANNELS GROWTH, with

particular attention to RETAIL (NEW BUSINESS

MODEL)

Focus on ADDED VALUE PROJECTS that will drive our

Company to the future

BP2018Short Term Run

BP2018Medium Term Run

OPERATIONS AND SUPPLY CHAIN EXCELLENCE

Fabio Sartori, Operations

OPERATIONS AND SUPPLY CHAIN EXCELLENCE

FLEXIBLE, SOLID AND SUSTAINABLE SOURCING

BEST IN CLASS LEVELS OF SERVICE

WORLD CLASS QUALITY

THREE KEY PILLARS

164

SOURCING : FLEXIBLE

EUInsource (Est EU)

F.EAST (no duty)

F.EAST (excl China)

China

2013

EU Insource (Est EU)

F.EAST (no duty)

F.EAST (excl China)

China

2016

EU

Insource (Est EU)

F.EAST (no duty)

F.EAST (excl

China)

China

2018

Reduction in sourcing from China in favour of other countries such as Europe, «Duty free» areas and countries offeringmore competitive costs.

Increase in sourcing from Europe to favour fast replenishment and an increasing percentage of own production (ownproduction in Serbia from 4% of total production in 2016 to 15% expected in 2018).

Potential upside from the elimination of duty in Vietnam, currently representing more than 30% of total production(expected in early 2018, according to the latest EU announcement - dated December 2015).

Opportunities created by trends of local currencies and raw material costs.

STRATEGIC SOURCING EVOLUTION

165

SOURCING: OWN PRODUCTION THE SERBIAN HUB

• Plant covering 21,000 m2• 1,250 employees• 11 production lines covering the entire

production cycle• 1.6 m pairs/year + HUB for outsourcing in

Eastern Europe• Focus on formal Men/Women and Amphibiox• Increase product know-how• Opportunity to supply Russia duty free• Short lead time

THE PROJECT

• 8 out of 11 production lines are running• 850 employees• Full production by the end of 2016 • Sharing and monitoring an improvement plan

PROJECT STATUS (FEBRUARY 2016) • The plant in Serbia will be able to handle around

15% of total production. If necessary, thispercentage can also be increased in a shortspace of time (reaching up to 30%), with theSerbian plant becoming a hub for production inneighbouring areas where there is extensiveknow-how in the field of shoe manufacturing(Albania, Macedonia, Bulgaria).

TARGET

166

SOURCING: SOLID PARTNERSHIP

• Signed terms and conditions of supply and Codeof Conduct

• Launch of supplier audit process

LONG TERM AGREEMENTS

• Geox shares KPIs (sustainability, quality, costperformance, service level) with manufacturerswith the aim of continuously improving ourbusiness relationships

• Highlighting trends, benchmark vs. CountryAverage, benchmark vs. Global Average, strengths,weaknesses and critical issues

• Sharing and monitoring an improvement plan

SUPPLIER CO–EVOLUTION PROGRAMME

• Supporting suppliers in production planning andcontrol with a centralised structure and localpresence

CONSISTENT AND RELIABLE PRODUCTION PLANNING

SUSTAINABILITY

QUALITY SERVICELEVEL

COST PERFORMANCE

GLOBAL AVERAGEFACTORY

167

SOURCING: SUSTAINABILITY

168168

Our audits are carried out by internationally recognized, independent certificationbodies (Intertek Group Plc).Each audit is focused on three main categories, verifying compliance with localregulations regarding:

• Environmental impact• Social impact

• Workplace health and safety

LEVELS OF SERVICE AS A STRATEGIC LEVER

• KPI system implemented and operational with specific objectives being defined and monitoredfor each department

• Meeting the expected Time to Market with an increasing number of “On Time deliveries”. Performance increased more than 10% SS16 vs FW15 and Geox aims to achieve further improvements also by customizing servicesfor key clients.

• Implementation of state-of-the-art Demand & Production Planning systems, improving forecasting ability, the release of products onto the market and the service level

• Supply Chain integration between the different levels of suppliers, encouraging collaboration in order to boost overall performance

• Local Supply Chain teams among suppliers allowing for constant supervision of the production process

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FW15 SS16 FW16 SS17

Service level Improvements

169

WORLD CLASS QUALITY

• GEOX STANDS FOR HIGHER QUALITY: quality assurance approach

• All shoes undergo to the certification process TÜV SÜD Footwear Mark, guaranteeing the quality of the production process and the substances used (from FW16, Geox will be the first shoe manufacturer to be awarded this certification)

• Constant supervision of production sites (senior, local and quality technicians)

RESPECT FOR THE ENVIRONMENT

PRODUCTCOMFORT

SAFE FOR CHILD GROWTH

CONSUMERHEALTH

170

WORLD CLASS QUALITY

• Meticulous checks and controls in order to minimize returns from market for quality reasons

• Collecting market feedback and immediate launch of actions plans for all phasesof the process

PRODUCT PROCESS INSPECTION

Testing activity on collection materials and specifications

Checks into specifications &

Confirmation Sample

Testing activity on the finished product

Pre-Delivery checksand controls

Analysis of Returns and Customer Service

support

Inbound checks and controls

171

WHOLESALE & RETAIL PRESENTATION

Enrico Morra,

WHOLESALE & RETAIL

EMEA & AMERICA


RESULTS

WHOLESALE & RETAIL STRATEGY

3Y PLAN TARGETS

WHOLESALE RESULTS

174

BACK TO GROWTH (2014/15)

BUSINESS MODEL AND FTW SALES FORCE SPECIALIZED BY CHANNEL

GROWTH ON EVERY CHANNEL (2014/15) +20% +1% +34%

KACCOUNT INDEPENDENTS WEB

+11% +5%CAGRNET SALES

FTW +13% RTW (COMP) +23%

FTW +6% RTW (COMP) +11%

175

NETWORK RAZIONALIZATION (2014/15)

NEW OPENINGS (2014/15)

L4L DOS(2014/15)

MARKDOWN REDUCTION(2014/15)

-350 DOORS

+8,2% (2014) +4,3% (2015)

L4L FRANCHISING(2014/15) +5,6% (2014) +3,9% (2015)

103BPS 342BPSDOS FRANCHISING

+212 DOORS

RETAIL RESULTS

176

CATCH THE MARKET GROWTH (2014/15) - WHOLESALE

BUSINESS MODEL SPECIALIZATION

DEVELOPMENT OF THE DIRECT E-COMMERCE BUSINESS (2014/15)

+34% +16%

DONE

CAGRNET SALES

+149% +58%CAGRNET SALES

15%WEIGHT

E-COMMERCE RESULTS

EXPLOITING POTENTIAL IN EVERY AND IN EVERY WE OPERATE

177

BECOMING THE PREFERRED WHOLESALEAND FRANCHISING PARTNER

MULTICHANNEL SPECIALIZATION PREPARE OMNICHANNELLING

OUR MISSION WHOLESALE

AS TOP LINE DRIVER

178

BUY LESS & SELL MOREREADY TO BUY “NOW” PRODUCTS

CORE PRODUCTSIN SEASON MANAGEMENT

OUR MISSION RETAIL

BECOME A DESTINATIONFOR E-SHOPPERS

OUR MISSION E-COMMERCE

179

E-COM KEY PARTNERSTAILOR MADE MARKET STRATEGY

OUTSTANDING CONSUMER JOURNEY THRU GEOX.COM AND 3RD PARTIES

WEB SITES

SALES FORCE SPECIALIZATION BY CHANNEL

BRAND & CHANNEL LED ASSORTMENT

IMPLEMENTING PER COUNTRY

180

COUNTRY/CHANNEL CENTRIC STRATEGY

DRIVERS WHOLESALE RETAILIZATION

181

KEY PARTNERS

DOSFRANCHISINGCONCESSIONSGEOX.COM

RETAIL WHOLESALEINDEPENDENTSKEY-ACCOUNTS

CONTEMPORARYMASS

E-COMMERCE

RETAIL KNOW HOW

INDEPENDENTSKEY-ACCOUNTS

CONTEMPORARYMASS

E-COMMERCE

BRANDED SPACESSPACES IN PREMIUM LOCATION

TO ENHANCE SHOPPING EXPERIENCE

MODEL – NOW AND CORE PRODUCTSIN SEASON MANAGEMENT

182

MARKET PRIORITIESCHANNEL MIX

GENDER MIXWHOLESALE RETAILIZATION

ALLIANCE WITH KEY STRATEGIC PARTNERSCOLLECTION SEGMENTATION

DRIVERS WHOLESALE FTW

183

SPECIALIZED SALES FORCERTW RETAILERS SPECIALISTKEY CITIES IN KEY MARKETS

ALLIANCE WITH RTW BRAND BUILDERS

FOCUS..FOCUS..FOCUSGROWTH OPPORTUNITY

DRIVERS WHOLESALE RTW

184

NETWORK RAZIONALIZATIONSELECTED CAPEX

NEW BUYING MODELAGGRESSIVE ISM

MONETARY COST OPTIMIZATION

CUSTOMER CENTRICITY AS VOLUME DRIVERNEW BUSINESS MODEL AS PROFIT BUILDER

DRIVERS RETAIL

MARKETS CENTRIC STRATEGY

MARKET POTENTIAL

LOW

HIGH


HIGH


ITALY

FRANCERUSSIA

UK

CANADA

BELUX

PENETRATION MARKETS

GREECE

185

IBERIAN

GERMANY

USA

AUSTRIA SWITZERLAND

WHOLESALE BUSINESS PLAN TARGETS

186

GROWTH ~27%, CAGR ~ 8%

2014 2015 2018

303ML326ML

404-437ML

RETAIL BUSINESS PLAN TARGETS

187

GROWTH ~ 13%, CAGR ~ 4%

2014 2015 2018

463ML

480ML

526-563ML

188

GROWTH ~ 56%, CAGR ~ 16% E-COMMERCE BUSINESS PLAN TARGETS

2014 2015 2018

43ML

59ML

89-94ML

RETAIL AND WHOLESALE

189

GROWTH ~ 19%, CAGR ~ 6%

2014 2015 2018

766ML806ML

930MLN-1BLN

RTL 463ML

WHL303ML

RTL 480ML

WHL 326ML

WHL404-437ML

RTL 526-563ML


Mauro Malta,

WHOLESALE & RETAIL

APAC

APAC AGENDA

MAIN STRATEGY

CHINA NEW WHS DISTRIBUTORS

RETAIL & WHS NETWORK 2018 TARGETS

KEY MARKETS

BUSINESS PLAN TARGETS

MAIN STRATEGY APAC - RETAIL

192

• Excellent Retail Model

• E-Commerce development

• Retail Support to Distributors (Operations, Visual Merchandising, Data Analysis, Training , MKTG).

Profitableand

SustainableBusiness

Retail Business

MAIN STRATEGY APAC - WHOLESALE

• Intensive offline business development in some key market (i.e. China)

• Major Middle term focus on China, South Korea, Indonesia markets

Profitableand

SustainableBusiness

WholesaleBusiness

193

194

• Distribution agreement with Pou Sheng International, listed on the HK Stock Exchange, one of the leading retailersin China in the lifestyle and sportswear market.

• The agreement includes:> the exclusive offline distribution of Geox Men and

Women collections in Mainland China except Beijing and Shanghai.

> Both Online and Offline business.> Both Mono brand store and Multi brand store for

Adult.> Total 229 mono-brand and 199 multi-brand stores in

3 years.

CHINA NEW WHOLESALE DISTRIBUTORS

Wholesale(Men & Women

Collections)

195

• Distribution agreement with Goodbaby China Commercial CO. LTD one of the largest multi-brand retailerin the country specialized in Kid’s products.

• Both online and Offline, but only under ‘Kids station’

• Total 225 Geox Corners in ‘Kids Station’ stores in 3 years

CHINA NEW WHOLESALE DISTRIBUTORS

Wholesale(Kids Collections)

196

APAC: DOS NETWORK EVOLUTION 2015 - 2018

65

2114

10099

22 20

141

0

20

40

60

80

100

120

140

160

CHINA HONG KONG JAPAN TOTAL

2015 2018

~ 40 DOS IN 3 YEARS

197

APAC: WHOLESALE DOORS EVOLUTION 2015 - 2018

460

53

349448

653

5100

401

1.159

0

200

400

600

800

1.000

1.200

1.400

CHINA HONG KONG JAPAN ASIA OCEANIA TOTAL

2015 2018

~ 700 WHOLESALE DOORS IN 3 YEARS

MARKET CENTRIC STRATEGY

198MARKET POTENTIAL

LOW

HIGH


HIGH


SHANGHAI

BEIJING

HK

SOUTH KOREA

CHINA (WHS)

SINGAPORE

PENETRATION MARKETS

INDONESIA

APAC SALES BUSINESS PLAN TARGETS

199

2014 2015 2018

GROWTH +26~31ML€, +~42%, CAGR +~12,5%95~100 ML €

58ML €

69ML €

Total Sales: Retail and Wholesale

LONG TERM STRATEGIC PLAN

GEOX BY 2018: A CLEAR SET OF TARGETS

Sales€.Million

EBITDA% on sales

N. OF GEOX SHOPSDOS & FRANCHISINGUNDER LICENCE AGREEMENT

2015 2018

874,3 1.025 – 1.100

7,1% ~ 10% -11%

1.1611.019

142

1.190 -1.260980-1.030

210-230

CAGR

~ 6,5%

~ 22%

201

THE PATH TO 2018: FLEXIBILITY TO REACT

202

20142015

2018

2016

2017SECURE

THE BUSINESSBUILD

THE NEW

IMPACT

ACCELERATE

2013

• Improved time to market and level of service

• Ahead of market standard in anticipating entire

product ranges

• New products, projects

• Market share growth

• Exploit full potential of core markets

• Increase penetration in markets with healthy

brand awareness

• New high potential market development

• Channel specialization

• Positive LFL

• Ecommerce management and development

• Implementing ideal channel mix per country

874

2015 2018

KEY ASSUMPTIONS: TOP LINE HEALTHY GROWTH

203

1025-1100

TOTAL SALES

281

2015 2018

376

2015 2018

SALES BY REGION

204

300-320

• Retail growth mainly driven by LFL performance that

will more than offset the residual portfolio optimization

• Exploit full potential of wholesale distribution through

alliances with strategic key accounts

• Retail growth mainly driven by LFL performance

• Exploit full potential of core markets: Iberia, France,

Germany, Austria, Switzerland

• Increase penetration in markets with healthy brand

awareness: Belgium, Luxembourg

• Develop high potential markets: UK

ITALY

EUROPE (*)425-455

(*) Germany, France, Spain , Portugal, Benelux, Austria, Switzerland, UK, Scandinavia

62

2015 2018

155

2015 2018

SALES BY REGION

205

95-100

• US and Canada growth mainly driven by wholesale

expansion

• Selected DOS openings and high single digit positive LFL

expected

• Intensive roll out of off line business development:

DOS: add 40 net openings to target 140 stores

Wholesale: add 700 new doors to target 1.150 POS

• China roll out made by the two new distributors

• E-commerce development

• increase penetration in South Korea and Singapore and further

expansion of Indonesia

AMERICAS

ASIA & ROW205-225

785

2015 2018

89

2015 2018

SALES BY PRODUCT

206

• Focus on innovation and new products

• Product range extention

• Exploit “end user” categories still uncovered

• Development in new markets by means of winter

collections for northern countries

• Focus on outerwear

• Specialized sales force

• RTW retailer specialists

• Key cities strategy in key markets

• Alliances with RTW brand builders

FOOTWEAR

APPAREL 100-110

925-990

354

2015 2018

521

2015 2018

SALES BY CHANNEL

207

• Product offer and distribution segmentation

• Wholesale “retailization”

• Preparing “omnichannelling”

• Alliances, collaborations, integrations with strategic KA

• Retail best practice to wholesale: “branded space”

management in SIS, concession and corners

• Brand presentation: unique shopping experience

• Customer centricity as top line driver

• Network rationalization and selective new openings

• Geox.com sales expansion

• Network refurbishment: new store concept to come

WHOLESALE

RETAIL580-620

445-480

KEY ASSUMPTIONS: RETAIL SPACE

208

• Store footprint executed in core markets

• Strong focus on profitability and cash flow

• Stricter financial criteria

• Selected new openings in EMEA, Americas and

ROW

• Planned development in China: 40 new openings

• Still room for portfolio optimization due to

residual closures of non performing stores and

lease expiry

476

2015 2018

DOS & FRANCHISING

• China new distribution agreement

• Asian distributors

UNDER LICENSE AGREEMENT

543

2015 2018

142

2015 2018

460-480

520-550

210-230

DOORSFRANCHISING

DOORSDOS

KEY ASSUMPTIONS: RETAIL PERFORMANCE

209

• New business model: a “buy less, sell

more approach”

• Fast lane to catch trends

• New buying model to reduce stock on

hands

ENHANCED PROFITABILITY AND CASH FLOW SHARE OF VOLUME SOLD AT FULL PRICE

INVENTORYTURN

RISK OFOVERBUYING

AVERAGE MARKDOWNON ARTICLES SOLD

LIKE FOR LIKE

AVERAGE MARKDOWN REDUCTION

• Mid single digit CAGR expected both in

DOS and Franchising channel

• Increased share of full price sell through

• Aggressive in season management to

chase customers demand

2016 2017 2018 TOTAL

DOS 5% 6% 6% 19%

FRANCHISING 4% 5% 5% 15%

2016 2017 2018 TOTAL

DOS 0% -1% -1% -2%

FRANCHISING 0% -2% -1% -3%

351

451

46,6%

51,6%

2013 2015 2016 2018

KEY ASSUMPTIONS: GROSS MARGIN

210

• Gross Margin dilution expected in 2016 due to

USD strengthen (200-300 bps)

• Regain gross margin expansion 2017 onwards

• Sales Growth in USD based countries will

rebalance currency geographic footprint

improving the natural hedge.

• Pricing and product mix improvement in terms

of profitability, sales dilution reduction

• Strategic sourcing evolution

• Opportunities from local currencies

• Opportunities from raw materials trends

• Strong commitment to reduce complexity

• Focus on existing structures to improve lines

efficiencies and product lifecycle

GROSS MARGIN

ALREADY BEYOND THE PEAK OF CAPEX CYCLE

211

48

4036

39 3835 35

2012 2013 2014 2015 2016 2017 2018

2016-2018

• Approx. 17 mln each year for

store new openings and

restylings

• Approx. 17 mln each year for

patents and trademarks,

supply chain, IT, HQ, moulds

and machinery

• Approx. 3million to complete

the Serbian Plant

• The Group is planning to invest

approximately an amount

equal to D&A

3941

39 38 38 39 40

2012 2013 2014 2015 2016 2017 2018

CAPEX

D&A

OPERATING WORKING CAPITAL - % ON SALES

212

23,8%

28,3% 27,5%

22,2%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 2018

22%

25%

february 26, 2016 · lfl performance 4q 2015, january, february (week 1 - 7, 2016) september....

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