9M 2011 Results

November 14th, 2011

B iBusiness Analysis

3€M

9M 2011 Highlights

OrdinaryEbit Ebit

Revenues Operating Profit

Broad negative impact from raw material.

1,498 1,481

159 119

Ebit Ebit

141 115

Performance reported: -1.1%.

SG&A reduction;lower one-time costs compared with last year.

9M 10 9M 11 10

159 119 141

11 10 11

115

9M 9M

Performance currency neutral: -0.5%

Positive impact from currency (~ 13€ mln).

Net Income Net Debt

Negative impact fromcurrency hedging: -11€ mln in 9M 11 vs. +13€ mln last year

Net Debt increase.

85 74960 486645+13€ mln last year.

Lower tax-rate: 34% in 9M 11 vs. 41% i 9M 10

Cash Flow absorption: rise in NWC & investments dedicated to

9M 10 9M 11 9M 10 9M 11FY 2010

41% in 9M 10 investments dedicated to the network.

Revenues4

€M

9M 10 9M 11 Ch % Ch % CN9M 10 9M 11 Ch % Ch % CN

Revenues 1,498 1,481 -1.1% -0.5%

Textile 80 93 16.2% 16.3%

Apparel 1,418 1,388 -2.1% -1.4%

Apparel Segment

- Wholesale 1,085 76% 1,076 77% -0.8% -0.3% Wholesale 1,085 76% 1,076 77% 0.8% 0.3%

- Direct Sales 333 24% 312 23% -6.3% -5.1%

Geographical Revenues 5

Reported C NRoW

1% (1%)

Asia

16% (16%)

Americas

4% (4%)

Overall Performance

Reported

-1.1%

C.N.

-0.5%

Macro-AreasEurope

Asia

Italy

-1.4%

+0.6%

-1.6%

+4.3%

Europe

79% (79%)Note: ( ) 9M 10 data

Americas +0.2% +5.4%

EuropeThe MediterraneanItaly: revenues decline (-2 7%)

AsiaIndia: rising revenues (+12%), driven by 3rd quarterperformanceItaly: revenues decline ( 2.7%).

Greece: double digit fall (-19%), confirming previousnegative trend.Iberian Peninsula: negative performance in Portugal(-10%) and Spain (-2%); Trend worsening in the 3rd

performance.South Korea: double digit growth (+10%).Ex-USSR Asian Countries: meaningful progress (+26%).Greater China: positive LFL results and improvement ofnegative trend(-10%) and Spain (-2%); Trend worsening in the 3

quarter.Other European CountriesOutstanding performance (+28%) in Russia and ex-USSR European Countries (+16%) Continental

negative trend.Decreasing results in Japan and South East Asia.

AmericasN th A i d li ( 9%)USSR European Countries (+16%). Continental

Europe: growth in Germany, Switzerland and U.K.North America: revenues decline (-9%).Mexico: major double digit growth (+26%).

6Geographical Revenues

Developing and Fast

Growth Countries

26% (24%)

Traditional

26% (24%)

Traditional Western

Economies

74% (76%) Note: ( ) 9M 10 data

Milan, Corso Vittorio Emanuele

Reported C.N.

-4% -4%TraditionalW t E i

+8% +11%

Western Economies

Developing andFast Growth CountriesFast Growth Countries

Milan, Piazza San Babila

7Highlights – Asia

India 22%

Others 10%

Japan11%

ex URSS-Asia3%

Greater China 9%

South Korea 29%

Turkey16%

Revenues: 238€ mln New Delhi, South Extension

Highlights

I di

Revenues: 238€ mln

Turkey

A/W 11 collections: positive sell-out, driven by offerfocused on lighter weights.

India

Performance increase: remarkable sales’ growth ofhigher product range, with positive mix impact.

Dedicated collection, starting from A/W 11 season,includes best-seller items.Positive LFL performance in 3rd quarter: resultsimproved against the first part of the year.

Entry-price point categories show positive trend.Market opportunity, with meaningful potential: newSisley store openings by partners.Kids proposal: accelerating sales, supported by offerstrengthening.

8Highlights – Americas & Europe

Americas EuropeAmericas Europe

Mexico 25%

Others27%

Russia & ex-USSR Europe

7%

Others36%

7%

USA & Canada 48%

Italy 57%

Revenues: 54€ mln Revenues: 1,180€ mln

Mexico Russia & ex-USSR Europe

Outstanding sell-out results for A/W 11: traffic storeincrease and average consumer spending up.Successful price positioning strategies, differentiatedby product range.

Kids commercial proposal & product linereinforcement: high potential segments targetedthrough an increasing offer of dedicated products.

by product range.LFL Performance : double digit growth (+15%).

USANetwork refocusing approach: closure of

ItalyPerformance in 3rd quarter affected by deliveries in 2nd

quarter in order to optimize response to commercialNetwork refocusing approach: closure ofunderperforming stores.

quarter, in order to optimize response to commercialrequests.

9Apparel Revenues

Collections Trend

Positive

~ +2%

PerformanceA/W 11 – improvement in performance trend (+2%), showing anincrease in order collection compared with previous trend

Flat

N i

~ (4%)~ (2%)

~ +2%

D i

increase in order collection compared with previous trend.Positive impact of in-season product initiatives, adopted in S/S 11and re-proposed in A/W 11.

A/W 10 S/S 11 A/W 11

Negative DriversRecent collections trend confirmed: resilient volumesperformance and improvement of price/mix.

Apparel Revenues by channel€M

WholesaleResults in line with previous year (-0.3% currency neutral),supported by favourable collections trend.

333

1,418 1,388

D.O.S.- 6.3%

- 2.1%

312 Directly Operated SalesNegative performance (-5 1% currency neutral) affected by:

1,085 1,076 Wholesale- 0.8%

Negative performance ( 5.1% currency neutral), affected by:

negative impact of network refocusing activities;DOS transfer in India to third parties management;negative LFL (-3%); third quarter results (-3%) in line with 1st

h lf 2011 ti l ff t d b l i S t b

9M 10 9M 11

half 2011, negatively affected by poor sales in September.

Brands & Collections10

Sisley 16% (16%)UCB 51% (52%)

UCB Kids & Sisley Young

Playlife 2% (2%)Kids 31% (30%)

& Sisley Young

Note: ( ) 9M 10 data

Brands: United Colors of Benetton11

UCB & Brand Values UCB & New Media UCB & Product

Lana Sutra Project

Dialogue with the world of art,combining traditional and newvalues of Benetton.

a a Sut a oject

New actions on social media:introduction of Benetton iPhoneApp, dedicated to UCB world.

On-going roll-out of mini-collections proposals: newinnovative total look

Art pieces, conceived as ahomage to love, emphasizing twokey elements of brand DNA: wool

Benetton.com launch, webportal & platform, crossing anew digital creativity border,

deliveries for A/W 11.

Product innovation andresearch: new exclusivey

threads and bright colours.

Itinerant installations in variousstores throughout the world.

featuring web 2.0 and socialnetworking.

knitwear technology “Pin Up”.

stores throughout the world.

… coming soon, the launch of new institutional worldwide communication campaign.

12Brands: New Store Concept Introduction

UCB & Store concept Playlife & Store ConceptSisley & Store Concept

Opening of the renovatedfl hi t i S B bil

Innovative shopping experiencePl lif t t

Flagship Vittorio Emanuele(Mil ) i t d ti f flagship store in San Babila

(Milan), launching the newSisley concept.

Playlife: new concept storeopened in Treviso.

(Milan): introduction of new“Lissoni” store concept, proposinga different display approach.

New lay-out: clarity of productpresentation, enhancingcollections and suggesting newlooks.

Multi-brand store, emphasizingthe different labels in thePlaylife world (Playlife, Jean’sWest, Anthology of Cotton,

On-going roll-out of “Lissoni”concept, adopted from 2H 10 andnow present in more than 30countries.

Killer Loop), and introducingcomplementary accessories.

P&LP&L Analysis

Profit & Loss14

€M

9M 10 9M 11 Ch %

Revenues 1,498 1,481 -1.1%

Gross Profit 696 645 -7.3%% 46.5% 43.5%

Contribution Margin 583 530 -9.0%% 38.9% 35.8%

SGA -424 -411 -2.9%

Ordinary EBIT 159 119 -25.2%% 10.6% 8.1%

Non recurring items -18 -4

EBIT 141 115 -18.4%% 9.4% 7.8%

P fi B f T i 139 91 3 2%Profit Before Taxation 139 91 -35.2%

Net income 85 60 -29.8%% 5.7% 4.1%

Ordinary EBITDA 235 195 -17.2%% 15.7% 13.2%

EBITDA 224 193 -14.1%% 15.0% 13.0%

Gross Profit Analysis15

€M

9M 10 9M 11 Ch % Ch % CN

Gross Profit 696 645 -7.3% -8.7%

% on Revenues 46.5% 43.5% -300 bp -390 bp

Apparel

696

(7)

(60) +10 +6

645

Gross Profit 9M 10

Commercial Side

Industrial Side

FX Impact Textile Gross Profit 9M 119M 10 Side Side 9M 11

Ebit Analysis16

€M

One-off Ordinary Ebit

(18) 1599M 10

Reported EBIT % on revenues

(18) 159

119 6

9M 10

9M 11

141

115

9.4%

7.8%(4)

141 115+13 +14(51) (2)141 115+13 +14(51) (2)

EBIT 9M 10

ApparelSGA

Non Recurring

EBIT 9M 11

Gross Profit

Selling Costs

Financial Cost & Net Income Analysis17

Financial expenses€M

Tax Rate

p

(15) (14)

41%

34%

9M 10

9M 119M 10 9M 11

Currency hedging

+13

Minority Interests

(3)

(0)

9M 10

9M 11 (0)9M 11

9M 10 9M 11

(11)

9M 10 9M 11 Ch % 9M 10 9M 11 Ch %

P.B.T. 139 91 -35.2%

% on Revenues 9.3% 6.1%

Net Income 85 60 -29.8%

% on Revenues 5.7% 4.1%

B l Sh tBalance Sheet & Cash Flow Analysisy

Net Capital Employed 19

€M

12.31.2010 09.30.2011 Ch

Working Capital 622 889 267

Asset to be sold 10 1 -9Tang. and Intang. fixed assets 1,314 1,306 -8Financial fixed assets 25 21 -4Other assets/(liabilities) 13 15 2

N t C it l E l d 1 984 2 232 248Net Capital Employed 1,984 2,232 248

financed by

Net Indebtedness 486 749 263Total Shareholders' Eq it 1 498 1 483 15

Net Capital Employed Analysis

Total Shareholders' Equity 1,498 1,483 -15

+267

(12) (7)

1,984

+2672,232

(*) T.I.F.: Tangible, Intangible and Financial Fixed Assets

Net Capital Employed 12.31.10

Ch. in Working Capital

Ch. in T.I.F.* Fixed Assets

Ch. in Other Liabilities

Net Capital Employed 09.30.11

Working Capital 20

€M

09.30.2010 09.30.2011 Ch

W ki C i l 86 889 103Working Capital 786 889 103

Net trade receivables 879 950 71

Inventories 291 348 57

(Trade payables) -371 -391 -20

Other credits/(debts) -13 -18 -5

Working Capital Analysis

Net Debt 21

€M

819

2009689

763

678

819

556556 589749

2010

2011

556556

508

645

486486 534

543

Initial Net Debt

Q1 H1 9M Year End Net Debt

Net Debt & Cash Flow generation

Free cash absorption in the first nine months of the year, due NWC increase, share buy-back programme

and continued investments.

Cash Flow22

€M

Net cash flow from operating activities Net cash flow from Investment activities

+78

(101) (82)

9M 10 9M 11 9M 10 9M 11

(131)

DividendsTreasury Shares

(41) (46)(18)

9M 10 9M 119M 10 9M 11

0

Net Investments23

€M

Net Investments+ 101 + 82

Real Estate

Commercial53

38

+ 91 + 53

13

40

Commercial Operations

53+ 91 + 5340

Production+ 10

+ 17

+ 14

+ 14Others

Disinvestments(8) (12)

Other changes(9) +13

9M 10 9M 11

AAnnex

Breakdown by segment25

€M

Apparel 9M 10 9M 11 Ch %Apparel 9M 10 9M 11 Ch %

Revenues 1,421 1,390 -2.1%

EBIT 146 107 -26.6%% 10.3% 7.7%

EBITDA 223 179 -19.7%% 15.7% 12.9%

Textile 9M 10 9M 11 Ch %

R 144 159 10 4%Revenues 144 159 10.4%

EBIT -5 8 n.s% -3.3% 5.3%

EBITDA 1 14 n.s% 1.0% 8.7%

Consolidated Balance Sheet & Working Capital26

€M

12.31.2010 09.30.2011 Ch 09.30.2010

Working Capital 622 889 267 786

Asset to be sold 10 1 -9 13Tang. and Intang. fixed assets 1,314 1,306 -8 1,317Financial fixed assets 25 21 -4 24Other assets/(liabilities) 13 15 2 0

Net Capital Employed 1,984 2,232 248 2,140

financed byfinanced by

Net Indebtedness 486 749 263 645Total Shareholders' Equity 1,498 1,483 -15 1,495

12.31.2010 09.30.2011 Ch 09.30.2010

Working Capital 622 889 267 786Working Capital 622 889 267 786Net trade receivables 804 950 146 879

Inventories 293 348 55 291

(Trade payables) -442 -391 51 -371( p y )

Other credits/(debts) -33 -18 15 -13

Net Book Value of Land & Building27

€M

Land and Building 09.30.2010 09.30.2011 Ch

Commercial 645 647 2Industrial 100 109 9Industrial 100 109 9Other 19 19 0Total 764 775 11

Commercial 09.30.2010 09.30.2011 Ch

Italy 164 168 4Russia-Ex USSR 140 145 5Russia Ex USSR 140 145 5France 104 104 0Spain 66 66 0Japan 40 43 3Portugal 28 28 0Belgium 18 17 -1Turkey 19 15 -4Austria 15 15 0Iran 19 14 -5USA 15 15 0USA 15 15 0India 10 9 -1Kosovo 4 4 0Switzerland 2 2 0Mongolia 1 2 1Mongolia 1 2 1Total 645 647 2

Statement of Consolidated Cash Flow28

€M

9M 10 9M 119M 10 9M 11

Cash from operating act. before changes in Working Capital 244 198Change in Working Capital -146 -275Interests paid/received - Foreign currency gains/(losses) -2 -26Payment of taxes -18 -28Net Cash Flow from operating activities 78 -131

Net Operating Assets -94 -86Financial Fixed Assets -7 4Net Cash Flow from investment activities -101 -82

Free Cash Flow -23 -213

Payment of dividends -41 -46

Purchase of treasury shares 0 -18

Surplus/(Deficit) -64 -277

29Credit Facilities available as of September 30th, 2011

Term loansTerm loans

400€ m (2007-2012)3 Term loans

Current Position Fully drawn

C t**

100€ m BNL150€ m Unicredit150€ m Intesa S. Paolo

Cost: Euribor 1/2/3/6 months +20/50 bp*

H1 11EBITDA / Net Fin. Exp.

min 4 11.6 x

Covenant**

250€ m (2010-2015)Club Deal

Current Position Fully drawn

50€ m BNL 50€ m Credit Agricole50€ m Cassa risp

N.D / EBITDA

max 3.5 1.8 x

50€ m Cassa risp. del Veneto 50€ m Mediobanca50€ m UnicreditCost: Euribor 1/2/3/6 months + 150/250 bp*

5.000Jpy m (2011–2014)Term loan

Current Position Fully drawn

5.000Jpy m Development Bank of JapanBank of Japan

Cost: Libor Jpy 6 months + 65 bp

** Covenants calculated every six months* Depending on the ratio N.D./EBITDA

30Credit Facilities available as of September 30th, 2011

60€ m (2009-2014) Current Position

Revolving Credit FacilitiesRevolving Credit Facilities

60€ m( )Committed credit facility Drawn for 40€ m

60€ mBanca Pop. Vicenza

Cost: Euribor 1/2/3/6 months +150/250 bp*H1 11

EBITDA / Net Fin. Exp.

min 4 11.6 x

Covenant**

150€ m (2010-2015)Committed credit facility

Current Position Not drawn

30€ m BNL 30€ m Credit Agricole30€ m Unicredit30€ m Cassa Risp

p

N.D / EBITDA

max 3.5 1.8 x

30€ m Cassa Risp. del Veneto30€ m MediobancaCost: Euribor 1/2/3/6 months + 150/250 bp*

Uncommitted Credit FacilitiesUncommitted Credit Facilities

446€ mUncommitted credit facilities

Current Position Drawn for 83€ m

Cost: Interbank (or prime) rate + spread

** Covenants calculated every six months* Depending on the ratio N.D./EBITDA

( p ) p

31Disclaimer

This presentation contains forward looking statements which reflect Management’s current views andestimates. The forward looking statements involve certain risks and uncertainties that could cause actualresults to differ materially from those contained in the forward looking statements. Potential risks anduncertainties include such factors as general economic conditions, foreign exchange fluctuations,competitive product and pricing pressures and regulatory developments.