2015 First Quarter Results 11 May 2015 -...

2015 First Quarter Results

11 May 2015

DISCLAIMER

This presentation has been prepared by YOOX S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. For further details on the YOOX Group, reference should be made to publicly available information. Statements contained in this presentation, particularly regarding any possible or assumed future performance of the Group, are or may be forward-looking statements based on YOOX S.p.A.’s current expectations and projections about future events, and in this respect may involve some risks and uncertainties. Actual future results for any quarter or annual period may therefore differ materially from those expressed in or implied by these statements due to a number of different factors, many of which are beyond the ability of YOOX S.p.A. to control or estimate precisely, including, but not limited to, the Group’s ability to manage the effects of the uncertain current global economic conditions on our business and to predict future economic conditions, the Group’s ability to achieve and manage growth, the degree to which YOOX S.p.A. enters into, maintains and develops commercial and partnership agreements, the Group’s ability to successfully identify, develop and retain key employees, manage and maintain key customer relationships and maintain key supply sources, unfavourable development affecting consumer spending, the rate of growth of the Internet and online commerce, competition, fluctuations in exchange rates, any failure of information technology, inventory and other asset risk, credit risk on our accounts, regulatory developments and changes in tax laws. YOOX S.p.A. does not undertake any obligation to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. Any reference to past performance of the YOOX Group shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe to any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms.

AGENDA

RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS FIRST QUARTER 2015 FINANCIAL ANALYSIS

Q&A

FIRST QUARTER ENDED 31 MARCH 2015 - RESULTS HIGHLIGHTS

1.Retail value of sales of all the mono-brand online stores, including the JV online store sales to final customers, net of returns and customer discounts. Set-up, design and maintenance fees for the mono-brand online stores, accounted for within “Not Country Related”, are excluded

2.Adjusted Net Income calculated by adding back to Net Income the costs associated with share-based incentive plans and the non-recurring items related to the merger with The Net-A-Porter Group in each period, net of their related tax effect. Non-recurring items mainly include legal, fiscal, accounting, valuation and strategic advisory consulting fees as well as general administrative costs related to the transaction

Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro

Group Net Revenues at €147m, up 16% (+14% at constant FX)

− Positive growth from all key geographical markets; US and China the fastest

growing countries

− Solid performance from both business lines: Multi-brand up 16%; Mono-brand

net revenues up 19% and Gross Merchandise Value1 up 27%

Gross margin gains more than offset by anticipated greater marketing investments

to support increased buying for yoox.com and higher corporate costs

− EBITDA Excluding Incentive Plan Costs at €9.1m, with a margin of 6.2%

(vs. 7.1% in 1Q 2014). EBITDA at €8.1m, with a margin of 5.5% (vs. 6.4% in

1Q 2014)

− Net Income up 30% at €1.2m (vs. €0.9m in 1Q 2014) after €1.6m of non-

recurring items related to the merger with The Net-A-Porter Group. Adjusted

Net Income2 at €3.0m, up 85%

Positive Net Financial Position at €20.3m (vs. €31.0m at December 2014)

LATEST BUSINESS DEVELOPMENTS

MULTI-BRAND

yoox.com - strong growth in China fuelled by great performance of the mobile channel driven by the newly launched native app which contributed 40% of mobile sales in 1Q 2015

MONO-BRAND

Letter of intent signed with Richemont to finalise a 5-year global partnership for the set-up and management of the Chloé and Alfred Dunhill online flagship stores

New 6-year partnership signed with KARL LAGERFELD for the launch of karl.com in Europe, the US and Japan in 4Q 2015

New online flagship store dedicated to McQ - Alexander McQueen’s contemporary line - launched in April 2015, bringing the number of online flagship stores managed by the JV with Kering to 8

Lanvin.com launched in Europe, the US and the Asia-Pacific region in February 2015 and extended to China in March 2015

PLATFORM INNOVATION

Cross channel development ongoing: Click & Exchange feature added to the suite of services offered

yoox.com - new text search tool released to improve conversion; desktop and mobile sites further optimised to improve rankings among search engines driving organic traffic and orders

New semi-automated shoe warehouse opened in Bologna in January 2015

AGENDA


Q&A

KEY PERFORMANCE INDICATORS1

Monthly Unique Visitors (m)2 # Orders (‘000) - Group

Active Customers3 (‘000) - Group4

1.Key performance indicators do not include the Joint Venture with Kering 2.Source: SiteCatalyst for yoox.com; Google Analytics for thecorner.com, shoescribe.com and the mono-brand online stores “Powered by YOOX Group” 3.Active Customer is defined as a customer who placed at least one order in the 12 preceding months 4.Include Active Customers of the mono-brand online stores “Powered by YOOX Group”

Average Order Value (€) - Group

Multi-brand Mono-brand excluding JV with Kering

7.9 8.9

6.9 9.9

14.8

18.8

1Q 2014 1Q 2015 1Q 2014 1Q 2015

1Q 2015 1Q 2014

194 198

1Q 2014 1Q 2015

1,135

1,300

842

984

+44.2%

+11.7%

+26.7% +16.9%

+2.1% +14.5%

NET REVENUE REVIEW BY BUSINESS LINE

1Q 2014 1Q 2015

+27.4%

Net Revenue Performance Mono-brand Gross Merchandise Value1 Growth

1.Retail value of sales of all the mono-brand online stores, net of returns and customer discounts. Set-up, design and maintenance fees for the mono-brand online stores, accounted for within “Not country related”, are excluded

+18.6%

+8.8%

Mono-brandNet Revenue Growth

Impact of differentbooking for the

JV online store sales

Mono-brand GrossMerchandise Growth

Net Revenue Breakdown

1Q 2014 1Q 2015

€91.1m €105.2m

€35.4m €42.0m

+18.6%

+15.5%

€126.5m

€147.2m

1Q 2015 vs. 1Q 2014

28.0% 28.5%

Multi-brand Mono-brand

72.0% 71.5%

+16.4%

@constant FX @current FX

+13.6% Group Y-o-Y

Growth

(€m)

Italy 20.0 22.1 10.8%

Rest of Europe 62.2 67.1 7.8% 15.5%

North America 24.9 35.6 43.0% 17.6%

Japan 10.7 11.3 5.9% 0.9%

Other Countries 6.6 10.0 51.9% 30.2%

Not Country Related 2.2 1.1 (47.9%)

Group Net Revenues 126.5 147.2 16.4% 13.6%

NET REVENUE REVIEW BY GEOGRAPHY

Net Revenue Performance

1.Not Country Related

Net Revenue Breakdown

7.7% 6.8%

15.0%

45.5%

24.2%

0.8%

19.7%

15.8% 8.5%

5.2%

49.2%

1.7%

Italy Rest of Europe North America RoW Japan NCR1

1Q 2014 1Q 2015

1Q 2014 1Q 2015 % Growth % Growth Constant FX

Δ mostly due to devaluation of RUB/EUR

Δ mostly due to strengthening of HKD/EUR and CNY/EUR

YOOX GROUP PROFIT & LOSS

Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation EBITDA Excluding Incentive Plan Costs calculated by adding back to EBITDA the costs associated with incentive plans in each period

1.Adjusted Net Income calculated by adding back to Net Income the costs associated with share-based incentive plans and the non-recurring items related to the merger with The Net-A-Porter Group in each period, net of their related tax effect. Non-recurring items mainly include legal, fiscal, accounting, valuation and strategic advisory consulting fees as well as general administrative costs related to the transaction

1Q 2014 1Q 2015 (€m)

Net Revenues 126.5 147.2 growth 14.6% 16.4%

COGS (84.1) (96.0)Gross Profit 42.4 51.2

% of Net Revenues 33.5% 34.8%Fulfillment (11.1) (13.2)

% of Net Revenues 8.8% 9.0%Sales & Marketing (13.6) (17.6)

% of Net Revenues 10.7% 11.9%General & Administrative (9.1) (11.3)

% of Net Revenues 7.2% 7.6%Other Income / (Expenses) (0.5) (1.1)

EBITDA 8.1 8.1% of Net Revenues 6.4% 5.5%

EBITDA Excluding Incentive Plan Costs 9.0 9.1% of Net Revenues 7.1% 6.2%

Depreciation & Amortisation (5.7) (7.2)% of Net Revenues 4.5% 4.9%

Non-recurring Items - (1.6)Operating Profit 2.4 (0.7)

% of Net Revenues 1.9% -0.5%Income / (Loss) From Investment In Associates (0.2) 0.1Net Financial Income / (Expenses) (0.7) 2.6

Profit Before Tax 1.5 2.0% of Net Revenues 1.2% 1.3%

Taxes (0.5) (0.8)Net Income 0.9 1.2

% of Net Revenues 0.7% 0.8%

Adjusted Net Income 1.6 3.0% of Net Revenues 1.3% 2.0%

EBITDA EXCLUDING INCENTIVE PLAN COSTS REVIEW BY BUSINESS LINE

Total Group

Multi-brand EBITDA Pre Corporate Costs Corporate Costs Mono-brand EBITDA

Pre Corporate Costs

1Q 2014 1Q 2015


Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A); Corporate Costs include General & Administrative costs (net of D&A) and Other Income / (Expenses) All figures on this slide are calculated excluding share-based incentive plans

% of Multi-brand Net Revenues

12.1% 11.8% 19.5% 19.2% % of Mono-brand Net Revenues

7.1% 7.7% % of Group Net Revenues

€9.0m €9.1m

€11.0m €12.4m

€(8.9)m

1Q 2014 1Q 2015 1Q 2014 1Q 2015 1Q 2014 1Q 2015

€6.9m €8.1m

€(11.4)m

€9.0m

€(0.9)m

€8.1m

€(5.7)m

€2.4m

€(0.2)m €(0.7)m €(0.5)m

€0.9m

EBITDA Excl.Incentive Plan

Costs

Incentive PlanCosts

EBITDA D&A EBIT Income / (Loss)From Associates

Net FinancialIncome /

(Expenses)

Taxes Net Income

FROM EBITDA TO NET INCOME

1Q 2014

1Q 2015

% of Net Revenues 6.2% 5.5% nm 0.8%

% of Net Revenues 7.1% 6.4% 0.7%

€9.1m

€(1.0)m €8.1m

€(7.2)m

€(1.6)m €(0.7)m

€0.1m

€2.6m

€(0.8)m €1.2m

EBITDA Excl.Incentive Plan

Costs

Incentive PlanCosts

EBITDA D&A Non-recurringItems

EBIT Income/LossFrom Investment

In Associates

Net FinancialIncome /

(Expenses)

Taxes Net Income

1.9%

Mostly due to FX gains

Positive contribution from the JV with Kering

Refer to the 1Q share of extraordinary costs

related to the merger with The Net-A-Porter Group

BRIDGE TO ADJUSTED NET INCOME

€1.2m

€1.1m

€0.7m €3.0m

Net Income Non-recurring itemsnet of related tax effect

Incentive Plan Costsnet of related tax effect

AdjustedNet Income

+85% Y-o-Y

1Q 2014

1Q 2015

€1.0m before tax effect


€0.9m

€0.7m €1.6m

Net Income Incentive Plan Costsnet of related tax effect

AdjustedNet Income


YOOX GROUP CASH FLOW STATEMENT AND NET FINANCIAL POSITION EVOLUTION

Cash Flow Statement

1Q 2015 1Q 2014

1

€31.0m €9.1m €2.7m

€(0.8)m

€(10.0)m

€(9.8)m €(0.5)m €(1.6)m

€0.1m €20.3m

FY 2014Net Cash

EBITDAExcl. Incentive

Plan Costs

Net FinancialIncome / (Expenses)

& Associates

Taxes Change inNet Working Capital

CapitalExpenditure

Other Non-recurringItems(M&A)

Proceeds fromStock Option

Exercise

1Q 2015Net Cash

1

1.Mainly refers to deferred tax assets, exchange rate impact resulting from the consolidation of foreign subsidiaries and fair value of derivative contracts

Net Financial Position Evolution

(€m)

EBITDA Excluding Incentive Plan Costs 9.0 9.1

Net Financial Income / (Expenses) & Associates (0.9) 2.7

Taxes (0.5) (0.8)

Change in Net Working Capital (5.5) (10.0)

Capital Expenditure (9.4) (9.8)

Other (0.8) (0.5)

Free Cash Flow (8.1) (9.2)

Non-recurring Items (M&A) - (1.6)

Proceeds from Stock Option Exercise 1.6 0.1

Change in Net Financial Position (6.4) (10.7)

NET WORKING CAPITAL AND CAPITAL EXPENDITURE EVOLUTION

Mar. 2014 Dec. 2014 1Q 2015 Mar. 2015

Increase in Inventories mainly due to increased buying for the 2015 Spring / Summer and Fall / Winter seasons and earlier deliveries for the 2015 Fall / Winter season compared to 2014

Net Working Capital

Capital Expenditure


€9.8m

1Q 2014 1Q 2015

€9.4m

Tech Operations Other

(€m)

Inventories 165.9 222.8 245.1 (22.2)

Trade Receivables 8.7 14.7 11.6 3.2

Trade Payables (120.4) (164.5) (181.2) 16.7

Other Receivables / (Payables) (20.4) (27.8) (20.2) (7.6)

Net Working Capital 33.8 45.3 55.3 (10.0)

as % of Net Revenues 7.2% 8.6% 10.1%

AGENDA


Q&A

APPENDIX

OUR GLOBAL STRATEGIC PARTNERSHIPS IN THE MONO-BRAND BUSINESS LINE YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS REPORTED EBITDA REVIEW BY BUSINESS LINE

FOCUS ON INCENTIVE PLAN COSTS YOOX GROUP SUMMARY BALANCE SHEET YOOX GROUP NET FINANCIAL POSITION EXCHANGE RATES SHAREHOLDER STRUCTURE

OUR GLOBAL STRATEGIC PARTNERSHIPS IN THE MONO-BRAND BUSINESS LINE

Online stores “Powered by YOOX Group”

JVCo with Kering

alexanderwang.com

pomellato.com

pringlescotland.com

barbarabui.com

moncler.com

dolcegabbana.com

trussardi.com

armani.com

dodo.it

dsquared2.com

moschino.com

emiliopucci.com

valentino.com

stoneisland.com

marni.com

emporioarmani.com

diesel.com

jilsander.com

bikkembergs.com

brunellocucinelli.com

maisonmartinmargiela.com

albertaferretti.com

napapijri.com

robertocavalli.com

y-3store.com

zegna.com

kartell.com

ysl.com mcq.com

bottegaveneta.com

sergiorossi.com alexandermcqueen.com

stellamccartney.com

balenciaga.com

missoni.com

redvalentino.com

lanvin.com

brioni.com

chloe.com OPENING SOON

dunhill.com OPENING SOON

karl.com OPENING SOON

YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS

1Q 2014 1Q 2015 (€m)

Net Revenues 126.5 147.2growth 14.6% 16.4%

COGS (84.1) (96.0)Gross Profit 42.4 51.2

% of Net Revenues 33.5% 34.8%Fulfillment Excl. Incentive Plan Costs (11.1) (13.2)

% of Net Revenues 8.8% 9.0%Sales & Marketing Excl. Incentive Plan Costs (13.4) (17.6)

% of Net Revenues 10.6% 11.9%General & Administrative Excl. Incentive Plan Costs (8.4) (10.2)

% of Net Revenues 6.7% 7.0%Other Income / (Expenses) (0.5) (1.1)

EBITDA Excluding Incentive Plan Costs 9.0 9.1% of Net Revenues 7.1% 6.2%

Depreciation & Amortisation (5.7) (7.2)% of Net Revenues 4.5% 4.9%

Non-recurring Items - (1.6)Operating Profit Excl. Incentive Plan Costs 3.3 0.3

% of Net Revenues 2.6% 0.2%Income / (Loss) From Investment In Associates (0.2) 0.1Net Financial Income / (Expenses) (0.7) 2.6

Profit Before Tax Excl. Incentive Plan Costs 2.4 3.0% of Net Revenues 1.9% 2.0%

Taxes (0.8) (1.081)Net Income Excluding Incentive Plan Costs 1.6 1.9

% of Net Revenues 1.3% 1.3%Adjusted Net Income 1.6 3.0


REPORTED EBITDA REVIEW BY BUSINESS LINE

Total Group

Multi-brand EBITDA Pre Corporate Costs Corporate Costs Mono-brand EBITDA

Pre Corporate Costs

1Q 2014 1Q 2015


Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A); Corporate Costs include General & Administrative costs (net of D&A) and Other Income / (Expenses)

% of Multi-brand Net Revenues

12.0% 11.8% 19.1% 19.2% % of Mono-brand Net Revenues

7.6% 8.4% % of Group Net Revenues

€8.1m €8.1m

€10.9m

€12.4m

€(9.6)m

1Q 2014 1Q 2015 1Q 2014 1Q 2015 1Q 2014 1Q 2015

€6.8m €8.1m

€(12.4)m

(€m)

Fulfillment (11.146) (13.203)

of which Incentive Plan Costs (0.054) 5.9% - 0.0%

Sales & Marketing (13.576) (17.585)

of which Incentive Plan Costs (0.197) 21.8% - 0.0%

General & Administrative (9.072) (11.256)

of which Incentive Plan Costs (0.656) 72.3% (1.014) 100.0%

Incentive Plan Costs (0.908) 100.0% (1.014) 100.0%

EBITDA Reported 8.091 8.068


Incentive Plan Costs (0.908) (1.014)

EBITDA Excl. Incentive Plan Costs 8.998 9.083


FOCUS ON INCENTIVE PLAN COSTS

% of Total

% of Total

1Q 2014

1Q 2015

(€m)

Net Working Capital 33.8 45.3 55.3 10.0

Non Current Assets 75.3 82.4 87.2 4.8

Non Current Liabilities (excl. financial liabilities) (0.3) (0.4) (0.3) 0.1

Total 108.8 127.3 142.1 14.8

Net Financial Debt / (Net Cash) (14.1) (31.0) (20.3) 10.7

Shareholders' Equity 122.9 158.3 162.4 4.1

Total 108.8 127.3 142.1 14.8

YOOX GROUP SUMMARY BALANCE SHEET

Mar. 2014 Dec. 2014 Change Mar. 2015

YOOX GROUP NET FINANCIAL POSITION

Net Financial Position

Mar. 2015 Dec. 2014

Long average maturity of outstanding debt (~90% of loans due between 1H 2017 and 2020) at an average cost of debt of 150bps over

the 3/6 month Euribor

Overview of Debt Facilities at 31 March 2015

Available Used Committed (€m)

Overdrafts 8.4 0 8.4

Bank Loans 123.2 88.2 35.0

European Investment Bank 45.0 45.0 -

Financial Leases & Other 8.7 8.7 -

Total 185.2 141.8 43.4

(€m)

Cash and Cash Equivalents 118.0 151.2

Other Current Financial Assets 10.0 12.0

Current Financial Assets 128.0 163.3

Current Financial Liabilities (30.9) (25.9)

Long Term Financial Liabilities (66.1) (117.1)

(Net Financial Debt) / Net Cash 31.0 20.3

1

1.The difference between the total of Used Debt Facilities and the sum of Current Financial Liabilities and Long Term Financial Liabilities relates to the negative fair value of derivative transactions, which are accounted for using the cash flow hedge method according to IAS 39

EXCHANGE RATES

1Q 2014

Period Average

1Q 2015 Mar. 2014

End of Period

Mar. 2015

EUR USD 1.370 1.126 1.379 1.076

% appreciation / (depreciation) vs. EUR 21.6% 28.2%

EUR JPY 140.798 134.121 142.420 128.950


EUR GBP 0.828 0.743 0.828 0.727


EUR CNY 8.358 7.023 8.575 6.671


EUR RUB 48.043 70.961 48.780 62.440

% appreciation / (depreciation) vs. EUR (32.3%) (21.9%)

EUR HKD 10.629 8.734 10.697 8.342


EUR KRW 1,465.343 1,240.160 1,465.980 1,192.580


EUR AUD 1.527 1.431 1.494 1.415


Federico Marchetti 7,152,653 10.9% 4,760,697 7.7%

Management team and other stock option holders 1,125,748 1.7%

Sub-total 8,278,401 12.6% 4,760,697 7.7%

Renzo Rosso 5,302,006 8.1% 5,302,006 8.5%

Capital Research and Management Company 2,998,469 4.6% 2,998,469 4.8%

Balderton Capital 2,185,145 3.3% 2,185,145 3.5%

OppenheimerFunds 2,037,264 3.1% 2,037,264 3.3%

Federated 1,485,400 2.3% 1,485,400 2.4%

William Blair 1,310,680 2.0% 1,310,680 2.1%

Market 42,019,571 64.0% 42,019,571 67.7%

Total 65,616,936 100.0% 62,099,232 100.0%

SHAREHOLDER STRUCTURE

Updated as of 11 May 2015 1.The fully diluted column shows the effect on the Company’s shareholders structure calculated assuming that all the stock options granted under the Company’s stock option plans are exercised 2.Excludes Federico Marchetti 3.Includes 17,339 treasury shares

Shareholders Current Fully Diluted 1

2

3

CONTACTS

Investor Relations

[email protected]

www.yooxgroup.com

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