9 March 2016 - YOOXcdn3.yoox.biz/.../doc/2016/...Presentation_vFINAL.pdf · By attending the...

2015 Full Year Results 9 March 2016

P A G E N U M B E R

2 Disclaimer This presentation has been prepared by YOOX NET-A-PORTER GROUP S.p.A. for information purposes only and for use in presentations of the Group’s results and strategies. For further details on YOOX NET-A-PORTER GROUP S.p.A., 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 NET-A-PORTER GROUP 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 NET-A-PORTER GROUP S.p.A. to control or estimate precisely, including, but not limited to, the Group’s ability to manage the effects of uncertain current global economic conditions on the business and to predict future economic conditions, the Group’s ability to achieve and manage growth, the degree to which YOOX NET-A-PORTER GROUP 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 the Group’s accounts, regulatory developments and changes in tax laws. YOOX NET-A-PORTER GROUP 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 YOOX NET-A-PORTER GROUP S.p.A. 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.

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3 Disclaimer on Pro-forma Financials In the entire presentation, the pro-forma financials and some performance indicators (hereafter the “pro-forma financials”) relating to the financial years ended 31 December 2015 and 31 December 2014 of YOOX-NET-A-PORTER GROUP S.p.A. are laid out. The pro-forma financials for the period ended 31 December 2015 have been prepared by aggregating the historical consolidated data of YOOX GROUP and of THE NET-A-PORTER GROUP and then carrying out adjustments for the purpose of simulating - according to valuation criteria consistent with the historical data and compliant, where appropriate, with the reference regulation represented by the International Financial Reporting Standards (“IFRS”) endorsed by the European Union - the economic effects of the merger on the operating performance of YOOX NET-A-PORTER GROUP as if such transaction had virtually occurred at the beginning of the 2015 fiscal year (1 January 2015) and at the beginning of fiscal year 2014 (1 January 2014), exclusively presented for comparative purposes. It should be noted that the historical financial data of YOOX GROUP at 31 December 2015 and 31 December 2014 derive, respectively, from the consolidated financial statements of YOOX NET-A-PORTER GROUP at 31 December 2015 and from the consolidated financial statements of YOOX GROUP at 31 December 2014. It should also be noted that the historical financial data of THE NET-A-PORTER GROUP Limited at 31 December 2015 and 31 December 2014 derives, respectively, from the consolidated financial statements of THE NET-A-PORTER GROUP Limited for the financial year ended 31 December 2015 and the consolidated financial statements of THE NET-A-PORTER GROUP Limited for the financial year ended 31 December 2014 and is prepared in accordance with the accounting principles applicable in the UK; such data was originally expressed in Sterling and for the purpose of being included in the pro-forma financials of YOOX NET-A-PORTER GROUP has been converted into Euro and arranged according to the presentation criteria adopted by YOOX GROUP. The pro-forma financials for the period ended 31 December 2015 and the consolidated financial statements of THE NET-A-PORTER GROUP Limited for the year ended 31 December 2015 and the consolidated financial statements of YOOX NET-A-PORTER GROUP are currently being audited by the independent auditors. The pro-forma financials for the period ended 31 December 2014 derive from those contained in the Informative Document on the merger by absorption of Largenta Italia S.p.A. into YOOX S.p.A. published on 3 October 2015 and were subject to audit by the independent auditors with an audit report issued on 28 August 2015. Please note that the information contained in the pro-forma financials of YOOX NET-A-PORTER GROUP represents, as mentioned above, a simulation, provided for illustration purposes only, of the possible effects of the merger on YOOX NET-A-PORTER GROUP’s financials. In particular, YOOX NET-A-PORTER GROUP pro-forma financials implied the adjustment of actual figures to retroactively reflect the effects of the merger; as a result, in spite of the compliance with the general criteria commonly accepted and the use of reasonable assumptions, intrinsic limits of the actual nature of the pro-forma financials persist because they are representations based on assumptions. Therefore, pro-forma financials should not be deemed representative of the results that would have been achieved if the transactions considered in the preparation of the pro-forma financials had actually taken place as at the dates taken as a reference. Pro-forma financials reproduce a hypothetical situation and therefore do not intend in any way to depict current or prospective financials of YOOX NET-A-PORTER GROUP. In light of the different purposes of the pro-forma financials compared to the historical financial statements, and, as regards those latter, of the conversion and restatement of THE NET-A-PORTER GROUP Limited data in the abovementioned terms, as well as of the different computation modalities of the effects of the merger with reference to the pro-forma financials presented, such pro-forma financials shall be read and construed independently from historical data, without seeking accounting connections between them. Pro-forma financials do not, in any way, intend to represent a forecast of future results and should therefore not be used for this purpose: pro-forma financials do not reflect prospective data in that they are only prepared to represent the most significant effects, capable of being isolated and objectively measured, of the merger and the associated economic transactions, without taking into account the potential effects resulting from any management decisions and operational choices taken as a result of the merger. The most important adjustments are outlined below: – the transfer of 100% of the shares of Largenta UK to Largenta Italy and subsequent consolidation of Largenta Group UK – elimination of costs related to fair value adjustments of THE NET-A-PORTER GROUP Limited B-Shares associated with an incentive plan, the cost of which has been borne by the

Richemont Group; – elimination of debt and related costs due to the interruption of non-commercial relations between the companies of THE NET-A-PORTER GROUP Limited and the companies of the

Richemont Group; – elimination of financial income and expenses deriving from extinguished financial liabilities of THE NET-A-PORTER GROUP Limited; – elimination of non-recurring costs borne in connection with the merger between YOOX Group and THE NET-A-PORTER GROUP Limited; – elimination of the related tax effects on the aforementioned adjustments, where applicable.

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4 Agenda

2015 RESULTS HIGHLIGHTS AND LATEST BUSINESS DEVELOPMENTS

2015 PRO-FORMA RESULTS

OUTLOOK FOR 2016

2015 REPORTED RESULTS

Q&A

P A G E N U M B E R

5

2015 Pro-Forma Results Highlights

Combined Group’s Net Revenues at €1.7 billion, up 31% (+21% at

constant FX) compared to €1.3 billion in 2014

− Strong growth of all business lines: Multi-brand In-Season up 37%;

Multi-brand Off-Season up 26%; Mono-brand GMV1 up 27%

− Solid and well-balanced performance across all key markets at

constant FX

Adjusted EBITDA1 at €133.1m, with a margin of 8.0% (vs 8.3% in 2014)

reflecting higher fulfilment costs due to capacity expansion in UK & Italy

Adjusted Net Income1 up 38% at €59.7m (vs €43.3m in 2014)

Net Cash at €62.1m as at 31 December 2015 (vs Net Cash of €60.4m as

at December 2014)

YOOX NET-A-PORTER GROUP

1. For full glossary, please refer to slide 37 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.

P A G E N U M B E R

6 Multi-Brand In-Season

CONTINUING TO ENRICH OUR PRESTIGIOUS BRAND PORTFOLIO

NET-A-PORTER.COM

– Addition of Tom Ford, Tod’s and Brunello Cucinelli

– Launch of numerous exclusive capsule collections such as Portofino by

Dolce&Gabbana, Cashmere Trench by Burberry London and the Sun and

Ski capsules by Chloé

MR PORTER.COM

– First online retailer to carry Tom Ford‘s menswear Ready-To-Wear

collection; addition of Moncler, Brunello Cucinelli, Brioni and Tod’s

– Launch of new area dedicated to sportswear

First-ever combined campaign for NET-A-PORTER.COM and MR

PORTER.COM successfully launched ahead of the Christmas season

ENHANCING THE MOBILE OFFER

Launch of the NET SET app, first fully shoppable social shopping network

Launch of NET-A-PORTER’s new native app for Android

IMPROVING USER EXPERIENCE AND CUSTOMER SERVICE

Introduction of recommendations based on customer’s location through

geo-targeting on NET-A-PORTER.COM

Release of new delivery options for NET-A-PORTER.COM, including the

possibility to schedule the delivery, collect the parcel from a service point or

select a neighbour in case of absence

P A G E N U M B E R

7 Multi-Brand Off-Season

ENHANCING THE BRAND OFFER

YOOX.COM

– Further enrichment of brand assortment with the addition of Proenza

Schouler and Oscar de la Renta

– Worldwide launch of new area dedicated to Travel coupling dedicated

editorial content with an edited assortment of off-season and in-season

travel essentials

THE OUTNET.COM

– Further enhancement of brand portfolio with the introduction of Emilio

Pucci, Brunello Cucinelli and Tod’s

CONTINUING TO UNLOCK THE MOBILE POTENTIAL

Launch of THE OUTNET.COM new native app now available both on iPhone

and iPad and supporting several additional features; app contribution to

sales nearly doubled since launch

Launch of TV campaigns in Italy for YOOX’s 15th Anniversary and Christmas,

and for the first time ever in the US

Introduction of the YOOX CARD in Italy, a pre-paid card available for a

select number of customers with dedicated benefits on yoox.com

FUELLING BRAND AWARENESS AND CUSTOMER ENGAGEMENT

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8 Online Flagship Stores Powered by YOOX NET-A-PORTER GROUP

Chloé and Alfred Dunhill (Richemont): 5-year agreement signed for the

global set-up and management of the online stores; dunhill.com successfully

launched in February 2016

In 2015 Lanvin and McQ online stores successfully launched in Europe, the

US and the Asia Pacific region including China; KARL LAGERFELD online

store launched in Europe, the US and Japan

NEW BUSINESS DEVELOPMENTS

RENEWALS

6 agreements to be discontinued: Pringle of Scotland and Roberto Cavalli in

1H 2016; EZI in 2H 2016; and TRS, Barbara Bui and Brunello Cucinelli in 1H

2017

In joint decision with the Brands, partnerships with Brunello Cucinelli, EZI,

Roberto Cavalli and Barbara Bui to be strategically refocused on the Group’s

Multi-brand divisions in order to maximise their online business potential

In 2015 the 6 online stores accounted for 0.6% of the Group’s Net Revenues

DYNAMIC PORTFOLIO MANAGEMENT

Global partnership with Moncler renewed for a further 5 years until 1 January

2021

P A G E N U M B E R

9 Technology and Operations

SUPPORTING VOLUME GROWTH

New semi-automated shoe warehouse opened in Bologna

New warehouse space opened in London

Development of new internally engineered automated solution for

photography in Bologna

On-going roll-out of cross-channel features: Click & Exchange, Buy on Call

and Click For Fashion Advice features added to the suite of services offered

Release of new mobile websites and native apps for the Group’s online

stores

Introduction of the Canadian Dollar, bringing the Group’s currencies to 10

Kick-start of technology integration activities to lay the foundations for

building a new common techno-logistics platform across all the Group’s

online stores and distribution centres

INVESTING IN PLATFORM INNOVATION

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10 Agenda


STRATEGIC PARTNERSHIP WITH IBM FOR INNOVATION IN ONLINE LUXURY FASHION


OUTLOOK FOR 2016


Q&A

P A G E N U M B E R

11 The Strategic Rationale

Lay the foundations for the development of one new common technology platform for the new Group, that is robust, reliable and scalable to support high and fast-increasing volumes

Facilitate post-merger system integration process, minimising costs and risks and improving time to market

Channel greater in-house technology efforts to delivering customer-centric innovation and cutting-edge technologies tailored to online luxury fashion

P A G E N U M B E R

12 A Break-through Technology Platform Further Empowered by IBM’s Leading Order Management System and E-commerce Suite…

In creating a shared proprietary technology platform for the new Group by 2018, YOOX NET-A-PORTER GROUP will combine in-house developed differentiating

solutions for the online luxury fashion industry with select best-in-class software that over time has emerged as industry standards. YOOX NET-A-PORTER GROUP will retain full intellectual property rights of its

technology architecture and of all its components

YOOX NET-A-PORTER GROUP has chosen IBM for its superior Order Management System, consistently considered the

strongest on the market thanks to its intelligent sourcing and automated order processing capabilities, and

for its leading e-commerce suite

THE FUTURE

APPROACH

P A G E N U M B E R

13 …Enabling Single View of Inventory & Step-change in Omni Channel Capabilities

Seamless inventory integration between YNAP and Brands’ DCs

and retail stores

More flexible fulfilment options

Better full-price sell-through, additional sales and more effective

inventory management for our brand partners

CLICK FROM STORE

RETURN IN STORE

BOOKING OF IN-STORE APPOINTMENT

CLICK & COLLECT

CLICK & EXCHANGE

CLICK & RESERVE

SHIP FROM STORE & SAME-DAY DELIVERY

DIRECT & REVERSE DROPSHIP

New OMS as the key enabler of “Global Stock” synergies

Customers from anywhere in the world will be able to

seamlessly access one global virtual inventory translating into

greater choice and less “out-of-stock”

Better full-price sell-through, greater sales and better inventory

management for YNAP

UPSCALING OMNI-CHANNEL OFFERING

REALISING GLOBAL STOCK SYNERGIES

NAP.COM

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14 …Empowering YNAP to Deliver Far Greater Innovation

EMPOWERING INTERNAL TECH TALENTS

As a result of the implementation of already-available solutions for order management and the e-commerce engine, internal tech teams will be able to enhance their focus on innovation

In-house developments of differentiating features will be addressed to areas including personalised customer and tailored brand experiences, mobile and native app developments, customer insights and analytics and social media marketing

TURNING IDEAS INTO REAL-LIFE BREAKTHROUGHS

Fashion & Luxury Innovation Committee: A think-tank where YNAP and its brand partners can contribute ideas and input for the development of bespoke e-commerce solutions

Customer Advisory Council: A forum for a select group of IBM customers whose input can directly influence future IBM product development

Direct access to IBM Innovation Labs: IBM’s full support on premise; direct daily access to IBM software labs in Toronto, Boston and across the world

LEVERAGING BEST-IN-CLASS TOOLS TO DELIVER UNIQUE EXPERIENCES

YNAP to build on flexible and customisable user interfaces and sophisticated tools to deliver rich and one-to-one customer and brand experiences, quickly and across all touchpoints

User-friendly tools will allow full independence of usage by YNAP’s internal teams as well as its mono-brand partners

P A G E N U M B E R

15 Agenda



OUTLOOK FOR 2016


Q&A

P A G E N U M B E R

16

€48.2m €58.3m

€140.9m €175.7m

€189.0m

€249.3m

Pro-forma Net Revenue Review By Business Line

Net Revenue Performance and Breakdown

€147.0m €175.3m

€472.9m €596.4m

€652.3m

€893.3m

€1,665.0m

€1,272.3m

@constant FX @current FX Group Growth +20.8%

2014 2015

+19.2%

+36.9%

+30.9%

51.3%

37.2%

53.7%

10.5%

€483.3m

€378.2m

@constant FX @current FX

+19.2%

4Q 2014 4Q 2015

+24.7%

+27.8% Group Growth

50.0%

12.8%

51.6%

36.4%

Mono-brand Gross Merchandise Value1 Growth

19.2% 8.3% 27.5%

Mono-brandNet Revenue Growth

Impact of differentbooking for the

JV online store sales

Mono-brand GrossMerchandise Growth

2015 vs 2014

20.8% 8.4% 29.2%

Mono-brandNet Revenue Growth

Impact of differentbooking for the

JV online store sales

Mono-brand GrossMerchandise Growth

4Q 2015 vs 4Q 2014

1. For full glossary, please refer to slide 37

+26.1%

Multi-brand In-Season

Online Flagship Stores

Multi-brand Off-Season

+20.8%

+31.9%

11.6%

35.8%

37.3%

12.1%

P A G E N U M B E R

17

(€m )

Italy 92.7 110.9 19.7% 19.7% 29.1 35.8 23.1% 23.1%

UK 192.2 263.9 37.3% 23.6% 59.0 79.6 35.0% 22.9%

Rest of Europe 375.5 439.5 17.0% 21.2% 104.7 121.9 16.5% 19.2%

North America 351.1 503.1 43.3% 19.8% 113.1 151.0 33.5% 15.4%

APAC 176.9 242.3 36.9% 22.6% 49.5 66.5 34.3% 23.2%

Rest of the World + NCR 83.8 105.3 25.7% 14.5% 22.8 28.4 24.9% 15.3%

Group Net Revenues 1,272.3 1,665.0 30.9% 20.8% 378.2 483.3 27.8% 19.2%

Pro-forma Net Revenue Review By Geography

1. Not Country Related

27.6%

15.1% 13.9%

6.6%

29.5%

7.3%

2014 2015

30.2%

15.8% 14.6%

6.3% 6.7%

26.4%

4Q 2014

13.1%

6.0%

15.6%

29.9%

7.7%

27.7%

13.8%

5.9%

16.5%

31.2%

7.4%

4Q 2015

25.2%

Net Revenue Performance

Net Revenue Breakdown

Italy UK Rest of Europe APAC North America Rest of the World and NCR1

2014 2015 % Growth % Growth Constant FX 4Q 2014 4Q 2015 % Growth % Growth

Constant FX

1

P A G E N U M B E R

18 Pro-forma Key Performance Indicators1

7.6 9.1

8.7 10.1

7.3 7.9

23.6 27.1

2015 2014

2015 2014 2014 2015

2014

317

352

325

357

4Q 2015 4Q 2014

10.1 10.4

9.6 11.1

7.8 8.5

27.4 30.0

+14.7%

+7.8%

+19.4%

+9.4%

+9.2%

+3.8%

+10.9% +9.7% +19.3%

4Q 2014 4Q 2015

2,111

2,519

4Q 2015 4Q 2014 2015

5,801 7,072

1,691 2,053

+21.9% +21.4%

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

Average Order Value (€) - Group Active Customers3 (‘000) - Group4

+16.3% +15.3%

Multi-brand In-Season Multi-brand Off-Season Online Flagship Stores

1.Key performance indicators do not include the Joint Venture with Kering and the jimmychoo.com online flagship store 2.Source: SiteCatalyst for NET-A-PORTER.COM, MR PORTER.COM and THE OUTNET.COM; SiteCatalyst and Google Analytics for YOOX.COM; Google Analytics for THECORNER.COM, SHOESCRIBE.COM and the Online Flagship Stores

"Powered by YOOX NET-A-PORTER GROUP “ 3.Active Customer is defined as a customer who placed at least one order in the 12 preceding months 4. Includes Active Customers of the Online Flagship Stores “Powered by YOOX NET-A-PORTER GROUP”

P A G E N U M B E R

19

(€m )

Net Revenues 1,272.3 1,665.0 378.2 483.3growth 30.9% 27.8%

COGS (773.5) (1,008.1) (222.5) (287.8)Gross Profit 498.8 657.0 155.6 195.5

% of Net Revenues 39.2% 39.5% 41.2% 40.4%Fulfillment Excl. Incentive Plan Costs (116.5) (165.7) (30.4) (44.5)

% of Net Revenues 9.2% 10.0% 8.1% 9.2%Sales & Marketing Excl. Incentive Plan Costs (151.2) (203.5) (45.2) (62.4)

% of Net Revenues 11.9% 12.2% 11.9% 12.9%General & Administrative Excl. Incentive Plan Costs (122.6) (150.1) (32.0) (36.0)

% of Net Revenues 9.6% 9.0% 8.5% 7.4%Other Income / (Expenses) (2.5) (4.6) (0.5) (1.7)

Adjusted EBITDA 1 105.9 13 3 .1 47.5 50.9% of Net Revenues 8.3% 8.0% 12.5% 10.5%

Incentive Plan Costs (20.2) (6.7) (5.2) (0.4)Depreciation & Amortisation (46.9) (56.9) (13.5) (14.2)

% of Net Revenues 3.7% 3.4% 3.6% 2.9%Operating Profit 38.8 69.5 28.8 36.2

% of Net Revenues 3.1% 4.2% 7.6% 7.5%Income / (Loss) From Investment In Associates (0.7) 0.6 (0.1) 0.4Net Financial Income / (Expenses) 4.2 0.8 3.1 (0.8)

Profit Before Tax 42.3 70.9 31.8 35.9% of Net Revenues 3.3% 4.3% 8.4% 7.4%

Taxes (18.9) (17.4) (15.1) (8.9)Net Income 23.4 53.4 16.7 27.0

% of Net Revenues 1.8% 3.2% 4.4% 5.6%Adjusted Net Incom e 1 43 .3 59.7 21.8 27.3% of Net Revenues 3.4% 3.6% 5.8% 5.7%

Pro-forma Profit & Loss

Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation 1. For full glossary, please refer to slide 37. For the description of the pro-forma adjustments, please refer to slide 3

4Q 2014 4Q 2015 2014 2015

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20

€105.9m

€(20.2)m €85.7m

€(46.9)m €38.8m

€(0.7)m

€4.2m

€(18.9)m €23.4m

€19.9m €43.3m

AdjustedEBITDA

Incentive PlanCosts

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

Net FinancialIncome /

(Expenses)

Taxes Net Income Incentive PlanCosts net ofrelated tax

effect

AdjustedNet Income

€133.1m

€(6.7)m

€126.4m

€(56.9)m

€69.5m €0.6m €0.8m

€(17.4)m

€53.4m €6.3m €59.7m

AdjustedEBITDA

Incentive Plan Costs

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


(Expenses)


effect

AdjustedNet Income

From Pro-forma EBITDA to Pro-forma Net Income

FY 2014

FY 2015

% of Net Revenues 8.0% 7.6% 3.6% 3.2%

% of Net Revenues 6.7% 3.1% 3.4% 1.8% 8.3%

4.2%

P A G E N U M B E R

21

From Pro-forma EBITDA to Pro-forma Net Income

4Q 2014

4Q 2015

% of Net Revenues 10.5% 10.4% 5.7%

€47.5m

€(5.2)m

€42.3m

€(13.5)m

€28.8m

€(0.1)m

€3.1m

€(15.1)m

€16.7m €5.1m €21.8m

AdjustedEBITDA

Incentive PlanCosts

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


(Expenses)


effect

AdjustedNet Income

5.6%

% of Net Revenues 11.2% 7.6% 5.8% 4.4%

€50.9m

€(0.4)m €50.4m

€(14.2)m €36.2m €0.4m

€(0.8)m €(8.9)m

€27.0m €0.3m €27.3m

AdjustedEBITDA

Incentive PlanCosts

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


(Expenses)


effect

AdjustedNet Income

12.5%

7.5%

P A G E N U M B E R

22 Cash Flow Statement and Net Financial Position Evolution

€60.4m

€133.1m €1.3m

€(28.9)m €(12.2)m

€(83.7)m €(4.1)m €(19.4)m

€15.6m €62.1m

Dec 2014Net Cash

AdjustedEBITDA


(Expenses)& Associates

Taxes Change inOrdinaryWorkingCapital

CapitalExpenditure

Other M&A RelatedItems

Proceeds fromStock Option

Exercise

Dec 2015Net Cash

1. Mainly refers to deferred tax assets, exchange rate impact resulting from the consolidation of foreign subsidiaries, fair value of derivative contracts and other reserves 2. Include Non-recurring Items relating to the merger with the NET-A-PORTER GROUP Limited and the delta capital injection vs Pro-forma assumptions

Cash Flow Statement

Net Financial Position Evolution

4Q 2015 2014 2015

Pro-Forma

4Q 2014 (€m )

EBITDA Excluding Incentive Plan Costs 105.9 133.1 50.9

Net Financial Income / (Expenses) & Associates 3.5 1.3 (0.4)

Taxes (18.9) (28.9) (12.2)

Change in Ordinary Working Capital (40.6) (12.2) 40.2

Capital Expenditure (54.8) (83.7) (21.1)

Other 1 9.7 (4.1) (5.4)

Free Cash Flow 4.8 5.5 n.a. 52.1

M&A Related Items 2 - (19.4) (8.9)

Proceeds from Stock Option Exercise 21.8 15.6 15.4

Change in Net Financial Position 26.6 1.7 n.a. 58.6

P A G E N U M B E R

23

(€m )

Inventories 449.1 531.6 (82.5) # (36.1)

Trade Receivables 19.5 31.3 (11.8) # (5.4)

Trade Payables (278.7) (353.3) 74.5 # 23.2

Other Receivables / (Payables) (105.9) (113.6) 7.6 # 58.5

Ordinary Net Working Capital 83.9 96.1 (12.2) # 40.2

as % of Net Revenues 6.6% 5.8%

Pro-forma Net Working Capital and Capital Expenditure Evolution

FY 2015

% of Net Revenues

€54.8m

€83.7m

4.3% 5.0%

2014 2015

Net Working Capital

Capital Expenditure

Tech Operations Other

Dec 2015 Dec 2014

4.4%

€21.1m

4Q 2015

Balance Sheet Cash Flow

4Q 2014 4Q 2015

n.a.

P A G E N U M B E R

24 Agenda



OUTLOOK FOR 2016


Q&A

P A G E N U M B E R

25 2016 Outlook

Multi-brand In-Season

Multi-brand Off-Season

Online Flagship Stores

Technology and Logistics Platform

Capitalise on past success focusing on existing and future EIPs (Extremely Important People) – Strengthening of personal shopping teams and further enhancing personal shopping experiences – Innovative brand building activities to drive acquisition and engagement – Development of localised approach

Enrichment of brand portfolio with new leading brands in Fall Winter Roll-out of in-house performance marketing team Enhancement of mobile offer

Launch of the new YOOX.COM release in Q3 2016 Coordinated buying for YOOX.COM and THE OUTNET.COM to improve economic terms Acceleration of international strategy leveraging online stores’ complementary geographical footprint Set up of internal centre of excellence for global performance marketing across both online stores Enhancement of mobile offer

Renewal of major contracts Launch of new online flagship stores Portfolio optimisation resulting in more resources allocated to partnerships with highest potential Further roll-out of omni-channel features Enhancement of mobile offer

Investments mainly devoted to: Lay the foundations to create a common techno-logistics platform across the Group’s stores and DCs

(including IBM) Set-up of new photo studios at Interporto (Bologna, Italy) Consolidation and expansion of HK DC Development of bonded warehouses in the UK and the US Further enhancements of mobile offer

Net Revenue growth in the high teens at constant FX1

Adjusted EBITDA margin improvement Approximately €150m of capital expenditure

1. Average 2015 exchange rates

P A G E N U M B E R

26 Agenda



OUTLOOK FOR 2016


Q&A

P A G E N U M B E R

27

(€m )

Net Revenues 524.3 922.7 76% 158.1 483.3growth 15.1% 76.0% 16.0% 205.7%

COGS (336.8) (570.9) (99.9) (287.8)Gross Profit 187.5 351.8 58.1 195.5

% of Net Revenues 35.8% 38.1% 36.8% 40.4%Fulfillment (42.3) (84.9) (9.0) (44.5)

% of Net Revenues 8.1% 9.2% 5.7% 9.2%Sales & Marketing (56.6) (113.4) (17.4) (62.5)

% of Net Revenues 10.8% 12.3% 11.0% 12.9%General & Administrative (37.4) (69.9) (9.5) (36.4)

% of Net Revenues 7.1% 7.6% 6.0% 7.5%Other Income / (Expenses) (2.5) (4.6) (0.5) (1.7)

EBITDA 48.8 79.0 61.8% 21.7 50.4% of Net Revenues 9.3% 8.6% 13.7% 10.4%

Depreciation & Amortisation (25.6) (36.4) (7.7) (14.2)% of Net Revenues 4.9% 3.9% 4.9% 2.9%

Non-recurring Items - (19.9) - (8.9)Operating Profit 23.3 22.6 -2.6% 14.0 27.3

% of Net Revenues 4.4% 2.5% 8.9% 5.7%Income / (Loss) From Investment In Associates (0.7) 0.6 1.3 (0.1) 0.4Net Financial Income / (Expenses) 0.1 (1.6) (1.7) 1.0 (0.8)

Profit Before Tax 22.6 21.6 14.9 26.9% of Net Revenues 4.3% 2.3% 9.4% 5.6%

Taxes (8.8) (5.0) (5.6) (6.5)Net Income 13.8 16.6 20% 9.2 20.5

% of Net Revenues 2.6% 1.8% 5.8% 4.2%

Profit & Loss

4Q 2014 4Q 2015 2014 2015

Note: Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation

P A G E N U M B E R

28

(€m )

Net Working Capital 45.3 (23.8) (69.1)

Non-Current Assets 82.4 2,013.2 1,930.8

Non-Current Liabilities (excl. financial liabilities) (0.4) (15.0) (14.6)

Total 127.3 1,974.4 1,847.1

Net Financial Debt / (Net Cash) (31.0) (62.1) (31.1)

Shareholders' Equity 158.3 2,036.5 1,878.2

Total 127.3 1,974.4 1,847.1

Summary Balance Sheet

Change Dec 2015 Dec 2014

P A G E N U M B E R

29 Agenda



OUTLOOK FOR 2016


Q&A

P A G E N U M B E R

30 Appendix

OUR GLOBAL STRATEGIC PARTNERSHIPS FOR ONLINE FLAGSHIP STORES

SHAREHOLDER STRUCTURE

YOOX NET-A-PORTER GROUP 2015 RESULTS

– FOCUS ON INCENTIVE PLAN COSTS

– PRO-FORMA NET FINANCIAL POSITION

– EXCHANGE RATES

P A G E N U M B E R

31

barbarabui.com

Our Global Strategic Partnerships for Online Flagship Stores Online Flagship Stores “Powered by YOOX NET-A-PORTER GROUP”

JVCo with Kering

alexanderwang.com

pomellato.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

albertaferretti.com

napapijri.com

justcavalli.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

karl.com

maisonmargiela.com

jimmychoo.com

P A G E N U M B E R

32 Shareholder Structure

Shareholders Total Ordinary Capital

(Voting) Total Share Capital

(Ordinary + Non-voting) 1 1

Updated as of 9 March 2016 1. Computed assuming that all of the 6,873,795 stock options granted and vested under YOOX NET-A-PORTER GROUP S.p.A.’s stock option plans are exercised 2. Excludes Federico Marchetti 3. The number of ordinary shares is calculated assuming that Richemont converts 3,100,284 non-voting shares to ordinary shares (ratio of 1:1) in order to re-establish the maximum of 25% of shares with voting rights as stipulated by the New Bylaws

3

2

Diluted Current Diluted Current

Feder ico Marchet t i 7 ,581 ,814 5 .5% 5,164 ,667 4 .0% 7,581 ,814 8 .0% 5,164 ,667 6 .1%

YNAP Managem ent team and other stock option holders 4,456,648 3.3% 4,456,648 4.7%

Sub- total 12,038,462 8.8% 5,164,667 4.0% 12,038,462 12.6% 5,164,667 6.1%

Richem ont 65,599,597 47.9% 65,599,597 50.4% 23,794,248 25.0% 20,693,964 24.3%

Renzo Rosso 5,186,321 3.8% 5,186,321 4.0% 5,186,321 5.4% 5,186,321 6.1%

Norges Bank 1,803,024 1.3% 1,803,024 1.4% 1,803,024 1.9% 1,803,024 2.1%

Market 52,354,937 38.2% 52,354,937 40.2% 52,354,937 55.0% 52,354,937 61.4%

To ta l Outs tanding Shares 136 ,982 ,341 100 .0% 130,108 ,546 100 .0% 95,176 ,992 100 .0% 85,202 ,913 100 .0%

Treasury Shares 17,339 0.0% 17,339 0.0% 17,339 0.0% 17,339 0.0%

To ta l Is sued Shares 136 ,999 ,680 100 .0% 130,125 ,885 100 .0% 95,194 ,331 100 .0% 85,220 ,252 100 .0%

Richemont

P A G E N U M B E R

33 Appendix

OUR GLOBAL STRATEGIC PARTNERSHIPS FOR ONLINE FLAGSHIP STORES

SHAREHOLDER STRUCTURE

YOOX NET-A-PORTER GROUP PRO-FORMA 2015 RESULTS

– FOCUS ON INCENTIVE PLAN COSTS

– PRO-FORMA NET FINANCIAL POSITION

– EXCHANGE RATES

P A G E N U M B E R

34

(€m )

Fulf i l lm ent (116.578) (165.709) (30.445) (44.523)

of which Incentive Plan Costs (0.097) 0.5% (0.009) 0.1% (0.000) 0.0% (0.009) 1.9%

Sales & Marketing (151.246) (203.546) (45.173) (62.506)

of which Incentive Plan Costs (0.004) 0.0% (0.078 ) 1.2% - 0.0% (0.078 ) 17.8%

General & Adm inistrative (142.767) (156.711) (37.164) (36.355)

of which Incentive Plan Costs (20.13 1) 99.5% (6.63 3 ) 98.7% (5.159) 100.0% (0.3 53 ) 80.3%

Incentive Plan Costs (20.23 2) 100.0% (6.720) 100.0% (5.159) 100.0% (0.440) 100.0%

EBITDA 8 5.679 126.3 73 42.299 50.424

% of Net Revenues 6.7% 7.6% 11.2% 10.4%

Incentive Plan Costs (20.232) (6.720) (5.159) (0.440)

Adjusted EBITDA 1 105.911 13 3 .093 47.458 50.8 64

% of Net Revenues 8.3% 8.0% 12.5% 10.5%

Focus on Incentive Plan Costs

FY 2014

% of Total

FY 2015

% of Total

4Q 2014

% of Total

4Q 2015

% of Total

1. For full glossary, please refer to slide 37. For the description of the pro-forma adjustments, please refer to slide 3

P A G E N U M B E R

35

(€m )

Overdrafts 66.0 3.5 62.5

Bank Loans 116.4 81.4 35.0

European Investment Bank 36.2 36.2 -

Financial Leases & Other 10.3 10.3 -

Total 228.8 131.3 97.5

(€m )

Cash and Cash Equivalents 118.6 130.3

Other Current Financial Assets 38.8 63.1

Current Financial Assets 157.4 193.4

Current Financial Liabilities (30.9) (30.1)

Long Term Financial Liabilities (66.1) (101.2)

(Net Financial Debt) / Net Cash 60.4 62.1

Pro-forma Net Financial Position

2015 2014

Long average maturity of outstanding debt (>80% of loans due between 1H 2017 and 2020) at an average cost of debt of 150bps over the 3/6 month Euribor

Available Drawn Granted

Net Financial Position

Overview of Debt Facilities at 31 December 2015

P A G E N U M B E R

36

EUR USD 1.3 29 1.110 1.250 1.095 1.214 1.076 1.119 1.120 1.08 9

% yoy appreciation / (depreciation) vs. EUR 19.7% 14.1% 13.6% 28.2% 22.1% 12.3% 11.5%

EUR JPY 140.3 06 13 4.3 14 142.754 13 2.952 145.23 0 128 .950 13 7.010 13 4.690 13 1.070

% yoy appreciation / (depreciation) vs. EUR 4.5% 7.4% (0.4%) 10.4% 1.0% 2.5% 10.8%

EUR GBP 0.8 06 0.726 0.78 9 0.722 0.779 0.727 0.711 0.73 9 0.73 4


EUR CNY 8 .18 6 6.973 7.68 2 7.000 7.53 6 6.671 6.93 7 7.121 7.061


EUR RUB 50.952 68 .072 59.716 72.405 72.3 3 7 62.440 62.3 55 73 .242 8 0.674

% yoy appreciation / (depreciation) vs. EUR (25.2%) (17.5%) (37.3%) (21.9%) (25.6%) (32.1%) (10.3%)

EUR HKD 10.3 02 8 .601 9.693 8 .48 9 9.417 8 .3 42 8 .674 8 .68 2 8 .43 8


EUR KRW 1,3 98 .142 1,256.544 1,3 57.929 1,268 .03 8 1,3 24.8 00 1,192.58 0 1,251.270 1,3 28 .270 1,28 0.78 0


EUR AUD 1.472 1.478 1.460 1.521 1.48 3 1.415 1.455 1.594 1.490

% yoy appreciation / (depreciation) vs. EUR (0.4%) (4.0%) 4.0% 5.6% (0.1%) (9.4%) (0.5%)

EUR CAD 1.466 1.419 1.419 1.462 1.406 1.3 74 1.3 8 4 1.503 1.512

% yoy appreciation / (depreciation) vs. EUR 3.4% (2.9%) 4.3% 10.8% 5.4% (6.5%) (7.0%)

Exchange Rates Period Average End of Period

2014 2015 4Q 2014 4Q 2015 Mar 2015 Jun 2015 Dec 2015 Dec 2014 Sep 2015

P A G E N U M B E R

37

Glossary

Gross Merchandise Value (GMV): GMV is defined as retail value of sales of all the Online Flagship Stores, including the JV online store sales to

final customers, net of returns and customer discounts. Set-up, design and maintenance fees for the Online Flagship Stores, accounted for

within “Rest of the World and Not Country Related”, are excluded

Pro-forma: Pro-forma Financials relating to the 12 month periods ended 31 December 2015 and 31 December 2014 of YOOX-NET-A-PORTER

GROUP S.p.A. have been adjusted by aggregating the historical data of YOOX Group and of THE NET-A-PORTER GROUP and then carrying

out the adjustments specified on slide 3 for the purpose of simulating the economic effects of the merger on the operating performance of

YOOX NET-A-PORTER GROUP as if such transaction had virtually occurred, respectively, at the beginning of the 2015 fiscal year (1 January

2015) and at the beginning of the 2014 fiscal year (1 January 2014), exclusively presented for comparative purposes. For further information on

the preparation criteria of Pro-forma Financials and on the limits concerning the information content thereof, please refer to slide 3

Adjusted EBITDA: Adjusted EBITDA is defined as reported EBITDA before the non-cash costs associated with Stock Option Plans and Share-

based Incentive Plans

Adjusted Net Income: Adjusted Net Income is defined as reported net income before the non-cash costs associated with Stock Option Plans

and Share-based Incentive Plans, net of their related tax effects

YOOX NET-A-PORTER GROUP (Pro-Forma)

Thank you T H I S D O C U ME N T I S P R O P R I E T A R Y A N D C O N F I D E N T I A L . N O P A R T O F T H I S D O C U ME N T MA Y B E D I S C L O S E D I N A N Y MA N N E R T O A T H I R D P A R T Y W I T H O U T T H E P R I O R W R I TT E N C O N S E N T O F Y O O X N E T - A - P O R T E R G R O U P

Investor Relations

[email protected]

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