Q3 Report September 30, 2015

Investors presentation

November 19, 2015

Confidentiality

This presentation has been prepared by Marcolin S.p.A. and its affiliates. The information contained

herein is confidential and has been prepared solely for the needs of the adressee and is not to be relied

upon by any other person or entity. Hence, if you wish to disclose copies of this report to any other

person or entity, you must inform they that they may not use these reports for any purpose without

Marcolin written consent.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance shoud be

placed on, the fairness, accuracy, completeness or correctness of the information or the opinions

contained herein.

2

3

At a glance

Key consolidated financials: LTM

Viva Integration Project

Agenda

Appendix

Key consolidated financials: Q3 2015

At a glance Key facts 2015

> Project Fortogna

> Joint ventures

4

> Portfolio licences

5

At a glance

Key consolidated financials: LTM

Viva Integration Project

Agenda

Appendix

Key consolidated financials: Q3 2015

Key consolidated financials

* EBITDA is affected by a number of extraordinary items. For this reason it has been adjusted to restate the one-off effects deriving from the re-organization as

represented in “Consolidated Adjusted EBITDA” page 22.

Sales Consolidated Net sales increased +18.8% vs. PY; +8.6% at constant FX.

Mainly driven by TF (+€ 25.0m), GU (+€ 7.4m), SK (+€ 5.2m) and the EZ contribution

for € 8.8m.

323.4 Million EUR

EBITDA 2015 3Q EBITDA Reported is € 25.4m (€ 21.9m previous year).

2015 3Q Adjusted EBITDA* (excluding one-offs) is € 34.9m or 10.8% (€29.5m PY).

LTM Adjusted Run-Rate EBITDA for 2015 is € 50.9m or 12.3% on Net sales.

3Q 34.9 10.8%

On Net sales

Net Debt

295.6 2015 Constant FX

6

Consolidated Net Debt as of September 2015 is € 235.3m (€ 196,1m end of

December 2014), growing €39.2m vs. PY mostly due to Trade Working Capital

increase.

The ratio Net financial position to LTM Adjusted Run-rate EBITDA is 4.50.

Million EUR in 2014

272.2

4.50 NFP /

Adj LTM RR Ebitda

LTM 50.9 12.3% On Net

sales

235.3 Million EUR

YTD 3Q Consolidated Sales 323.4 million EUR

2015 YTD 3Q

@ const FOREX

+18.8% vs PY

Global sales By market destination

295.6 mill EUR +8.6% vs PY

7

North America

Europe Asia

RoW

143.6 Mill. EUR

95.4 Mill. EUR

27.6 Mill. EUR

56.6 Mill. EUR

44.4%

29.5% 8.6%

17.5%

+11.4%

+23.5%

+38.4%

+13.0%

PY like-for-like perimeter

• Net Sales performance is positive: +€51.2m (+18.8%) above last year, driven by full recovery of Italy (+31.0%)

and growth of USA and Far East. In terms of brands the performance was driven by TF (+31%), SK (+69.4%), MB

(+22.7%), BA (+47.2%) and EZ launched in the first quarter 2015 (+8.6m).

• Net Sales @ constant FX +€23.4m or +8.6% vs. PY.

• GM in 2015 is €25.8m higher than that of the previous year, growing from €164.0m (or 60.3%) up to €189.8m (or

58.7%) in 2015. The negative price effect for certain product lines to accommodate specific market demands and

the negative volumes effect also influenced by the disruptions resulting from the move of the Distribution Center

from Arizona to New Jersey, were more than counterbalanced by an important positive brand mix effect and the

positive impact of exchange rates.

• EBITDA Reported in 2015 is €25.4m vs. €22.0m last year (respectively 7,9% vs. 8.1% of Net sales).

• EBITDA Adjusted, excluding one-off items, would be €34.9m vs. last year € 29.5m (in both periods 10,8% of Net

sales).

• Net Financial Costs of €17.6m in 2015 include €12.7m for Bond interests (of which €8.5m already paid in May). The

change in respect to previous year is mostly due to exchange rate differences, in particular explained by a higher

net result on US currency accrued in 2014, in addition to unrealized losses due to the devaluation of currency

Brazilian real incurred in 2015.

8

YTD 3Q P&L Executive Summary

Consolidated Profit & Loss

9 9

Key financials: YTD 3Q

YTD September

(EURm)Actual 15

Reported

Actual 15

Reported %NS

Actual 14

Reported

Actual 14

Reported %NS

Net sales 323,4 100,0% 272,2 100,0%

Cost of sales (133,5) -41,3% (108,1) -39,7%

-- Gross Margin 189,8 58,7% 164,0 60,3%

Selling and marketing costs (150,4) -46,5% (129,1) -47,4%

General and administrative expenses (25,4) -7,9% (22,8) -8,4%

Other operating income and expenses 2,7 0,8% 2,0 0,7%

Effects of accounting for associates 0,3 0,1% 0,2 0,1%

-- OPERATING PROFIT (EBIT) 17,1 5,3% 14,3 5,3%

Net finance costs (17,6) -5,4% (8,4) -3,1%

-- Profit before taxes (0,5) -0,2% 5,9 2,2%

Income tax expense (5,3) -1,6% (2,8) -1,0%

-- Net Result (5,8) -1,8% 3,1 1,1%

-- EBITDA 25,4 7,9% 22,0 8,1%

-- EBITDA ADJUSTED 34,9 10,8% 29,5 10,8%

• Net Trade Receivables: compared to Dec 14, the increase of €8.4m is explained by the sales growth, the

business seasonality and also impacted by the foreign exchange rate difference for €2.1m. In the period total

consolidated DSO index is under control and increased by 2 days.

• Inventory: compared to Dec 14 has risen by €13.5m, mostly due to improve customer service aimed at reducing

delivery time, and to investing in supplies of continuing products (to be “never out of stock”). It has been also

impacted by the discontinuity represented new brands launched in 2015, and new JVs inventory. In addition it has

been influenced by a foreign exchange rate difference for €4.1m.

• Payables: in reference to trade payables, the improvement we had in the DPO at the end of 2014 (due to the

alignment of Viva and Marcolin’ suppliers payment terms to the longest time period), has been reabsorbed

during 2015. The higher amount as at Dec 14 was related to payables due to licensors also in connection with

renewal fees paid during 2015, and other payables due to capital expenditures.

• Capex: primarily consisted in the investments in the new Fortogna plant (tangibles), in addition to investments in

extending/improving terms and conditions of licenses (intangibles).

• Net Financial Position: September 2015 increased from €196.1m (Dec 14) to €235.3m, with a change of €39.2m

mostly due to TWC, as detailed in the consolidated Cash Flow Statement.

10

B/S Executive Summary

Consolidated Balance Sheet

11

Key financials: 3Q

Balance Sheet (EURm) Sep-15 Dec-14 Change vs Dec

Net trade receivables 75,3 66,9 8,4

Inventory 113,6 100,1 13,5

Payables to suppliers (90,1) (102,3) 12,2

TRADE WORKING CAPITAL 98,8 64,6 34,1

Other receivables 14,2 14,1 0,1

Other payables (35,3) (31,0) (4,3)

NET WORKING CAPITAL 77,7 47,8 29,9

Other receivables - medium/long term 38,2 39,4 (1,2)

Equity investments 2,0 1,9 0,1

Net tangible assets 28,0 24,7 3,3

Net intangible assets 40,3 37,2 3,1

Goodwill 285,4 278,0 7,4

FIXED ASSETS 393,9 381,1 12,7

Funds and reserves (10,3) (10,0) (0,2)

NET INVESTED CAPITAL 461,3 418,9 42,4

Financial debts - short term 63,7 41,4 22,4

Financial debts - medium/long term 201,7 199,2 2,6

FINANCIAL POSITION 265,4 240,5 24,9

Other current financial (25,6) (39,0) 13,3

Other non current financial (4,5) (5,5) 0,9

NET FINANCIAL POSITION 235,3 196,1 39,2

NET EQUITY 226,0 222,8 3,2

COVERAGE OF NIC 461,3 418,9 42,4

Net Financial Position

12

Key financials: 3Q

1

2

(EURm) Sep 2015 Dec 2014

Short Term borrowings 63,7 41,4

Medium Long Term borrowings 208,8 207,2

Gross borrowings 272,5 248,6

Cash and cash equivalents 24,5 36,9

Financial receivables current 1,1 2,0

Financial receivables non current 4,5 5,5

Reported Net indebtedness befor Amortized Fees 242,3 204,1

Bond amortized fees (7,0) (8,1)

Reported Net indebtedness after Amortized Fees 235,3 196,1

Revolving Credit Facility 25,0 20,0

Short term borrowings from Banks 16,2 15,0

Financial Loan - Current 13,9 1,3

Vendor Loan (HVHC) - Short Term 1,8 1,7

Bond accrued interests 6,5 2,3

Financial leasing current 0,3 1,1

Short Term gross borrowing 63,7 41,4

Senior Secured bonds 200,0 200,0

Financial Loan - Non Current 5,3 3,8

Vendor Loan (HVHC) - Long Term 2,5 2,1

Financial leasing non current 1,0 1,4

Medium Long Term gross borrowing 208,8 207,2

Consolidated Cash Flow Statement

13

Key financials: 3Q

(EURm) Sep 2015 Sep 2014 Dec 2014

Operating activities

Profit before income tax expense (0,5) 5,9 7,1

Depreciation, amortization and impairments 7,8 7,0 9,0

Accruals to provisions/ other non cash items 21,3 0,3 6,1

CF from operating activities before changes in WC, tax and int. 28,6 13,2 22,2

Movements in working capital (39,2) (10,7) (11,0)

Income taxes paid 0,2 (3,1) (3,6)

Net cash flows provided by operating activities (10,4) (0,6) 7,6

Investing activities

Purchase of property, plant and equipment (6,6) (4,0) (6,2)

Proceeds from the sale of property, plant and equipment 0,1 0,4 0,8

Purchase of intangible assets (7,6) (5,3) (6,7)

Acquisition of investment 0,1 0,0 (6,5)

Net cash from/(used in) investing activities (14,1) (8,8) (18,7)

Adjustments to other non-cash items (0,0) 2,9 (2,5)

Financing activities

Net proceeds from/(repayments of) borrowings 19,7 8,0 26,5

Interest paid (9,5) (9,0) (18,3)

Other cash flows from financing activities 1,0 0,0 0,0

Net cash from/(used in) financing activities 11,1 -1,0 8,2

Net increase/(decrease) in cash and cash equivalents (13,3) (7,5) (5,3)

Effect of foreign exchange rate changes 0,9 2,7 3,7

Cash and cash equivalents at beginning of period 36,9 38,5 38,5

Cash and cash equivalents at end of period 24,5 33,7 36,9

14

At a glance

Key consolidated financials: LTM

Viva Integration Project

Agenda

Appendix

Key consolidated financials: Q3 2015

Revenues Analisys by market destination

Europe million eur Row ASIA North america million eur million eur million eur

15 Ex rate EUR/USD : 1,3549 in 2014 and 1,1145 in 2015

+11.4%

+7.5% +19.5%

+38.4%

+25.0% +10.7%

Key financials: LTM

+23.5% +13.0%

As of September, 30th Full Year

2015 Q3 % 2014 Q3 % 2015 LTM % 2014 %

Europe 95,4 29,5% 85,7 31,5% 140,1 33,9% 130,4 36,0%

North America 143,6 44,4% 116,3 42,7% 167,5 40,5% 140,2 38,7%

Asia 27,6 8,6% 20,0 7,3% 38,4 9,3% 30,7 8,5%

Rest of World 56,6 17,5% 50,2 18,4% 67,3 16,3% 60,8 16,8%

Total 323,4 100,0% 272,2 100,0% 413,3 100,0% 362,1 100,0%

Total @ constant FX (€ Mln) 295,6change vs. PY 8,6%

in € Mln, except percentages in € Mln, except percentages

16

EBITDA REPORTED EBITDA ADJUSTED *

7.9%

ADJ RUN-RATE EBITDA **

% 2015 LTM on net sales

11.9% % 2015 LTM on net sales

8,1% in 2014 12.3%

% 2015 LTM on net sales

12,1% in 2014 13,9% in 2014

* excluding one-offs * including synergies

Ebitda performance – run rate ebitda post synergies (million eur)

Key financials: LTM

2015 LTM FY 2014 2014 SEPTEMBER LTM

NET SALES 413,3 362,1 349,2

% vs. PY 14,1% 4,6% 1,3%

EBITDA 32,8 29,4 23,7Adjustment 16,4 14,4 13,2

49,3 43,8 36,9

Management Fees 0,0 0,0 0,3Germany J/V 0,0 0,0 0,4

EBITDA ADJUSTED 49,3 43,8 37,7Synergies 1,6 6,4 8,5

ADJ RUN-RATE EBITDA 50,9 50,3 46,2

EBITDA ADJ % on Net sales 11,92% 12,10% 10,79%

EBITDA ADJ RR % on Net sales 12,31% 13,88% 13,23%

in € Mln, except percentages

CONSOLIDATED

17

At a glance

Key consolidated financials: LTM

Viva Integration Project

Agenda

Appendix

Key consolidated financials: Q3 2015

Integration Plan

18 18

Viva Integration

TOTAL

(*)

18 months

6 months

3 m

3 m

2014 2015

3 m

6 months

3 m

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

US

UK

France

Hong

Kong

Brazil

Canada

Germany

Integration Updates

19 19

Viva Integration

TOTAL

(*)

2014 2015

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

US

UK

France

Hong

Kong

Brazil

Canada

Germany

15 months

6 months

4 months

3 m

3 m

3 m

Distr.

15 months

Synergies & OTC

20

Synergies 2014 & 2015

One Time Costs 2014 & 2015

Viva Integration

in € Mln Original Budget Spent FY 2014 New Estimation FY 2015 3Q 2015 To Go

US (*) 6,4 6,3 11,2 4,9 -

UK 0,9 1,4 1,4 - -

France 1,0 0,9 2,4 1,5 -

Brazil 0,4 0,5 0,6 0,1 -

Hong Kong 0,3 0,3 0,3 - -

Total OTC 9,0 9,4 15,9 6,5 -

(*) US includes Canada estimated OTC, related to the integration project

in € Mln Original Budget Realized FY 2014 Estimation FY 2015 Realized 3Q 2015 To Go

US 6,1 3,0 6,6 2,7 0,9

UK 1,0 0,5 2,0 1,1 0,4

France 0,8 - 0,9 0,6 0,2

Brazil 0,4 - 0,4 0,3 0,1

Hong Kong 0,2 0,1 0,2 0,1 -

Total Sinergies 8,5 3,6 10,0 4,8 1,6

21

At a glance

Key consolidated financials: LTM

Viva Integration Project

Agenda

Appendix

Key consolidated financials: Q3 2015

Consolidated Adjusted Ebitda

22

Appendix

in € Mln, except percentages YTD Q3 2015 YTD Q3 2014

EBITDA pre-adjustment 25,4 22,0

Costs of discontinued operations 2,4 -

Pro-Forma EBITDA 27,8 22,0

Senior management changes 0,6 1,2

Cost related to VIVA Integration 6,5 6,4

Total adjustments 7,1 7,5

EBITDA ADJUSTED 34,9 29,5

Net Sales 323,4 272,2

% on Net Sales 10,8% 10,8%

in € Mln, except percentages LTM 2015 FY 2014

EBITDA pre-adjustment 32,8 29,4

Costs of discontinued operations 2,4 -

Pro-Forma EBITDA 35,2 29,4

Senior management changes 1,4 2,0

Cost related to VIVA Integration 9,6 9,4

Other 3,0 3,0

Total adjustments 14,0 14,4

EBITDA ADJUSTED 49,3 43,8

Net Sales 413,3 362,1

% on Net Sales 11,9% 12,1%

EBITDA ADJUSTED RUN-RATE 50,9 50,3

% on Net Sales 12,3% 13,9%

Investor relation

Marcolin Contacts:

Massimo Stefanello

Corporate Managing Director

+39 0437 777111

mstefanello@marcolin.com

Alessandra Sartor

CFO

+39 0437 777204

asartor@marcolin.com

23