5. Geographical Revenues 5
Reported C.N.
CN
Asia Americas RoW
17% (16%) 3% (4%) 1% (1%)
Overall Performance +1.7% +2.0%
Italy
Macro-Areas
Europe +1.5% +1.2%
Asia +2.6% +4.7%
Americas +0.4% +4.5%
Europe
79% (79%)
Note: ( ) H1 10 data
Europe Asia
The Mediterranean Double-digit raise in South Korea; Middle East Area
Italy: slightly positive performance (+1%) driven by
(+1%), confirming notable upside (+27% C N )
C.N.).
2nd quarter results. Negative performance in China, affected by refocused
Greece: double digit decline (-21%), confirming store network, partially balanced by positive LFL
negative previous trend. performance. Japan, Hong Kong and South East Asia
Spain: mild growth (+4%) supported by improving
(+4%), continue to reduce overall results
results.
trend in the second quarter.
Other European Countries Americas
Further acceleration in Russia: revenue growth of Increasing results in Latin & South America, offsetting
approx. +40%.
approx +40% negative performance i N th A
ti f in North America (USA &
i
Continental Europe: steady performance, benefiting Canada).
by Germany & Switzerland upside.
6. Geographical Revenues 6
Developing
and Fast
Growth
Countries
25% (23%)
Traditional
Western
Economies
75% (77%)
Note: ( ) H1 10 data
London,
London Oxford Circus
Reported C.N.
Traditional -0.1% -0.4%
Western E
W t Economies
i
Developing and +8% +10%
Fast Growth Countries
Moscow, Presnya
7. Highlights – Asia 7
Others India
23% 19%
Greater
China
10%
Turkey South Korea
16% 32%
Istanbul, Bagdad Street
Highlights
India
I di Turkey
T k
Flattish performance in India, strongly affected from Dedicated collection development, starting from
~140 DOS transfer to third parties’ management. F/W 11, leveraging on successful Asian experience.
Network: widespread presence accounting more than Strategy supported by local sourcing increase,
400 stores, of which ~300 managed from partners; focusing on selected product categories.
~40 new stores openings in the first part of 2011, Successful price positioning strategies: increasing
mainly in South-East area. sell-out of entry-price points categories.
Kids offer strengthening, supported by stand-alone
stores openings: more than 20 dedicated stores
(5 new openings in 2011).
8. Highlights – Americas & Europe 8
Americas Europe
Mexico Russia & ex-USSR
Others
Others 6%
28% 23%
37%
USA &
Italy
Canada
57%
49%
Mexico Russia & ex-USSR
Widespread network, accounting more than 20 Directly Outstanding progress: positive impact from kids
Operated Stores and over 200 corners in Department performance,
performance driven by complete product categories
Stores, including 10 new openings in S/S 11 offer, well appreciated by high-range spending
collections. customer.
Local partnership renewed and extended. Man collections: positive customer response.
South America
Strong improvement, driven by outstanding Italy
performance in Chile, Peru and Colombia: new corners Increasing performance, positively affected by
openings in Department Stores and new free standing
free-standing deliveries, i li
d li i in line with commercial requests, & new
ith i l t
stores. initiatives introduced.
9. Apparel Revenues 9
Collections Trend
Positive Performance
A/W 11: further improvement compared with previous
~ +2%
Flat
collections trend; positive performance expected.
~ (2%)
~ (4%)
Negative
N i Drivers
A/W 10
Volumes trend: resilient performance confirmed.
S/S 11 A/W 11
expected Price/mix improvement vs. previous collections.
Apparel Revenues by channel
€M
Wholesale
Growth performance driven by improving collections trend,
p y p g ,
839 843 +0.6% differentiated delivery cycle and selected DOS transfer to
212
third parties management in India.
223 212 D.O.S.
-5.0% Directly Operated Sales
y p
Results affected by refocusing store network (non-
616 631 Wholesale profitable stores closing in USA, Japan and China) and
+2.6% DOS transfer in India.
LFL – slightly positive performance in the 2nd quarter,
showing notable progress vs. 1st quarter.
H1 10 H1 11
Continued profitability improvement.
11. Brands & Collections 11
United Colors of Benetton Sisley UCB Kids
Appointment of the new Ongoing partnership with New A/W 11 mothers-to-be line
Creative Director and Chief different artists: new S/S 11 proposals: collections renewal,
Merchandising Officer, capsule collection, designed in characterized by higher mix
strengthening
g g management
g collaboration with the world content and targeting younger
and creative structure. renowned artist and illustrator moms.
Milo Manara.
In-season innovative total look New A/W 11 communication International Markets: ongoing
proposals: campaign, interpreting new growth, on the back of new
new mini-collections, delivered independent life-style brand initiatives adopted in each
monthly,
monthly show positive sell-out philosophy and integrated with countries.
countries
performance. new digital and viral projects.
12. Brands & New Media 12
United Blogs of Benetton Sisley.com I’m Unique
Many successful initiatives New Web platform I’m unique casting:
g g
targeting Social Media Sisley.com: total new look,
y , first casting on-line to find
g
(Facebook, You Tube, Twitter, interactive browsing and 2.0 faces of S/S 12 campaign.
Foursquare), leading to 50% approach.
fans’ increase on Facebook
since January 2011.
Blog.benetton.com Independentpeople.com Dedicate blog and Facebook
New international blog, online Launch of new Blog/magazine, page, following the progress of
from the end of May
May. updated by dedicated editorial casting.
casting
staff.
19. Net Capital Employed 19
€M
12.31.2010
12 31 2010 06.30.2011
06 30 2011 Ch
Working Capital 622 684 62
Asset to be sold 10 1 -9
9
Tang. and Intang. fixed assets 1,314 1,294 -20
Financial fixed assets 25 22 -3
Other assets/(liabilities) 13 10 -3
Net Capital Employed
p p y 1,984
, 2,011
, 27
financed by
Net Indebtedness 486 543 57
Total Shareholders' Equity
q y 1,498
, 1,468
, -30
Net Capital Employed Analysis
(23) (12)
+62
2,011
1,984
Net Capital Ch. in Working Ch. in T.I.F.* Ch. in Other Net Capital
Employed 12.31.10 Capital Fixed Assets Liabilities Employed 06.30.11
(*) T.I.F.: Tangible, Intangible and Financial Fixed Assets
20. Working Capital 20
€M
06.30.2010 06.30.2011 Ch
Working Capital 623 684 61
Net trade receivables 709 783 74
Inventories 375 423 48
(Trade payables) -455
455 -497
497 -42
42
Other credits/(debts) -6 -25 -19
Working Capital Analysis
(42)
+48 (19)
+74 684
623
Working Capital Ch. in Net Trade Ch. Inventories Ch. In Trade Ch. In Other Working Capital
06.30.10 Receivables Payables Credits/(Debts) 06.30.11
21. Net Debt 21
€M
819
763
689
2009 678
645
589 556
556 543
2010
534 486
2011 486 508
Initial Q1 H1 9M Year End
Net Debt Net Debt
Net Debt & Cash Flow generation
Free cash absorption in the first half of the Year, due NWC increase and continued investments.
22. Cash Flow 22
€M
+150
+40
Net cash flow from operating activities
H1 10 H1 11
(54) (51)
Net cash flow from Investment activities
H1 10 H1 11
(41) (46)
Dividends
H1 10 H1 11
23. Net Investments 23
€M
+ 54 + 51
Net Investments
11 Real Estate 11
+ 44 33 Commercial 16 + 27
Commercial Operations
+6 +5
Production
+ 10 +9
Others
(7) Disinvestments (8)
Other changes
g + 18
+1
H1 10 H1 11
26. Consolidated Balance Sheet & Working Capital 26
€M
12.31.2010 06.30.2011 Ch 06.30.2010
Working Capital 622 684 62 623
Asset to be sold 10 1 -9 10
Tang. and Intang. fixed assets 1,314 1,294 -20 1,311
Financial fixed assets 25 22 -3 25
Other assets/(liabilities) 13 10 -3 20
Net Capital Employed 1,984 2,011 27 1,989
financed by
Net Indebtedness 486 543 57 508
Total Shareholders' Equity 1,498 1,468 -30 1,481
12.31.2010 06.30.2011 Ch 06.30.2010
Working Capital 622 684 62 623
Net trade receivables 804 783 -21 709
Inventories 293 423 130 375
(Trade payables) -442 -497 -55 -455
Other credits/(debts) -33
33 -25
25 8 -6
6
27. Net Book Value of Land & Building 27
€M
Land and Building 06.30.2010 06.30.2011 Ch
Commercial 639 648 9
Industrial 103 110 7
Other 20 19 -1
Total 762 777 15
Commercial 06.30.2010 06.30.2011 Ch
Italy 158 169 11
Russia-Ex USSR
R i E 148 149 1
France 105 105 0
Spain 66 66 0
Japan 42 39 -3
Portugal 28 28 0
Belgium 18 17 -1
Turkey 19 16 -3
Austria 16 15 -1
Iran 21 14 -7
USA 0 14 14
India 11 9 -2
Kosovo 4 4 0
Switzerland 2 2 0
Mongolia
M li 1 1 0
Total 639 648 9
28. Statement of Consolidated Cash Flow 28
€M
H1 10 H1 11
Cash from operating act. before changes in Working Capital 130 111
Change in Working Capital 31 -49
Interests paid/received - Foreign currency gains/(losses) 0 -15
Payment of taxes -11 -7
Net Cash Flow from operating activities 150 40
Net Operating Assets -47 -53
Financial Fixed Assets -7 2
Net Cash Flow from investment activities -54 -51
Free Cash Flow 96 -11
Payment of dividends -41 -46
Purchase of treasury shares 0 0
Surplus/(Deficit) 55 -57
29. Credit Facilities available as of June 30th, 2011 29
€M
Term loans
400€ m (2007-2012) Current Position:
3 Term loans Fully drawn
1° half
Covenant** 2011
100€ m BNL
150€ m Unicredit EBITDA / Net Fin. Exp. min 4 11.6x
150€ m Intesa S. Paolo N.D. / EBITDA max 3.5 1.8x
Cost: Euribor 1/2/3/6 months +20/50 bp*
250€ m (2010-2015) Current Position:
Club deal Fully drawn
F ll d
1° half
50€ m BNL Covenant** 2011
50€ m Credit Agricole
EBITDA / Net Fin. Exp. min 4 11.6x
50€ m Cassa Risp. del Veneto
N.D. / EBITDA max 3.5 1.8x
50€ m Mediobanca
50€ m Unicredit
Cost: Euribor 1/2/3/6 months + 150/250 bp*
* Depending on the ratio N.D./EBITDA ** Covenants calculated every six months
30. Credit Facilities available as of June 30th, 2011 30
€M
Revolving Credit Facilities
60€ m (2009-2014)
( ) Current Position:
Committed credit facility Not drawn
1° half
Covenant** 2011
60€ m Banca Pop. Vicenza
EBITDA / Net Fin. Exp. min 4 11.6x
Cost: Euribor 1/2/3/6 months +150/250 bp* N.D. / EBITDA max 3.5 1.8x
150€ m (2010-2015) Current Position:
Committed credit facility (Club deal) Not drawn
1° half
30€ m BNL
Covenant** 2011
30€ m Credit Agricole
g
30€ m Unicredit EBITDA / Net Fin. Exp. min 4 11.6x
30€ m Cassa Risp. del Veneto N.D. / EBITDA max 3.5 1.8x
30€ m Mediobanca
Cost: Euribor 1/2/3/6 months + 150/250 bp*
460€ m Current Position:
Uncommitted credit facilities Drawn for 44€ m
Cost: Interbank (or prime) rate + spread
* Depending on the ratio N.D./EBITDA; ** Covenant calculated every six months
31. Disclaimer 31
This presentation contains forward looking statements which reflect Management’s current views and
estimates. The forward looking statements involve certain risks and uncertainties that could cause actual
results to differ materially from those contained in the forward looking statements. Potential risks and
uncertainties include such factors as general economic conditions, foreign exchange fluctuations,
competitive product and pricing pressures and regulatory developments.
