January 31st, 2012

1. FY 2011
Preliminary Hi hli ht
P li i Highlights

2. Revenues &
Business A l i
B i Analysis
2

3. Revenues
€M
2010 2011 Ch. % Ch. %
Prel. C.N.
Revenues 2,053 2,031 -1.1% -0.4%
Performance reported: -1.1%.
Performance currency neutral: -0.4%.
Negative impact from currency: -14€ mio.
Developing and Fast Growth Countries:
double digit growth.
3

4. Geographical Revenues
€M
2010 2011 Prel.
Total Revenues 2,053
2 053 2,031
2 031
Developing
and Fast
Growth
Reported C.N. Countries
26% (24%)
( )
Overall Performance -1.1% -0.4%
Traditional
Developing and +7% +10%
Western
Fast Growth Countries Economies
74% (76%)
Traditional Western Economies -4% -4%
Note: ( ) FY 10 data
Bruxelles, Rue Neuve Santiago, Av. Goyenechea Slovenia, Ljubljana 4

5. Revenues - Europe
€M
% on total Others Russia &
Revenues Revenues 26% ex-USSR / EU
6%
Europe 1,606 79%
Spain &
Reported C.N. Portugal Italy
11% 57%
Performance -2% -2%
The Mediterranean Russia & ex-USSR / EU
Italy: narrow decrease, in line with European Amazing growth in Russia (+25%) and ex-USSR / EU
performance. Trend improvement in the last quarter. countries (+20%).
Iberian Peninsula: sales decrease (-4%), driven by
( ), y Extensive presence, supported from initial development
p , pp p
limited decline in Spain (-3%) and notable shrink in in Tier II Cities. Total store network accounting more
Portugal (-10%). than 170 stores.
Greece: significant fall in revenues (-16%); less Commercial proposals development, targeting high
negative trend in the last few months. potential segments: initiatives dedicated to kids and
man.
Continental Europe Door-to-door Project: delivery improvement, thanks to
Sales up in Germany (+6%) and Austria, highlightening new merchandise shipments organization.
increasing trend performance Positive results in UK
performance. UK.
C.N. performances reported. 5

6. Revenues - Asia
€M
% on total ex USSR Asia 3% Others 11%
Revenues Revenues India
Japan 10% 20%
Asia 333 16%
Greater
China
Reported C.N. 9%
Turkey South Korea
Performance +2% +5%
16% 31%
Outstanding double digit revenues’ increase in India India
(+11%), South Korea (+11%), ex-USSR Asian Countries Network: extensive presence with ~480 stores in over
(+20%) and Middle East. 100 towns across the nation, both in Tier I, II and IIII
LFL growth in Greater China, driven by double digit
g , y g cities. More than 90 openings in 2011, mainly in
p g , y
increase in China and positive results in Hong Kong and secondary cities and South-East Area.
Taiwan. Largely completed DOS transfer to third parties’
Negative performance in Japan and on-going management: ~ 150 stores from Q1 10.
decreasing results in South East Asia. Store traffic and average ticket increase, driven by total
Turkey look offer and dedicated collections.
LFL increase, showing double digit growth in the 2nd half Market opportunity and potential of Kids and Sisley:
2011. ~ 50 dedicated stores already opened.
Dedicated collection approach introduced in A/W 11 and
local sourcing raise, to offset increasing duties.
C.N. performances reported. 6

7. Revenues - Americas
€M
% on total Others 10%
Revenues Mexico
Revenues
South 24%
Americas 80 4% America
21%
Reported C.N. Canada USA
6% 39%
Performance +2% +6%
USA & Canada Mexico
Revenues decrease: negative impact from refocusing
activities and stores closing. Network: more than 25 DOS and over 230 corners in
Comparable sales improvement in the last part of 2011.
p p p Department Stores, including more than 30 openings in
p , g p g
2011.
South America Healthy growth, showing a performance up over 20%.
Performance up +30%, driven by stores network Comparable sales: double digit increase.
development and new openings in malls and Local partnership renewed and extended in March
department stores. 2011.
C.N. performances reported. * Rest of the World : 12€ mln of revenues in 2011 (preliminary results) 7

8. Revenues by channel
€M
2010 Prel. Ch. % Ch. %
2011 CN
Total Revenues 2,053 2,031 -1.1% -0.4%
Apparel 1,948 1,912 -1.9% -1.1%
Wholesale 1,475 1,458 -1.1% -0.6%
Directly Operated Sales 473 454 -4 0%
4.0% -2 8%
2.8%
Textile 105 119 +14% +14%
8

9. Apparel Revenues
Collections Trend Apparel Revenues by channel
Positive
os e
Directly
~ +2% flat Operated
Flat Sales
~ (4%) 24%
~ (4%) Wholesale
Negative 76%
S/S 12
A/W 10 A/W 11 S/S 11 expected
Performance Wholesale
A/W 11: positive collections performance (+2%). Revenues in line with previous year, on the back of collections
S/S 12: collections performance expected to be flat; trend; results affected by S/S shipments.
improved trend compared with previous S/S 11 (-4%).
New in-season product initiatives: positive impact on
2011 collections, supporting trend expected in next Directly Operated Sales
proposals. LFL: flat performance in Q4 11, showing an improvement
p
trend compared with 9M 11 results.
Drivers FY 11 comparable results: slight decrease (-2%), supported
Slight price/mix improvement and resilient volumes by positive performance in emerging markets.
performance: S/S 12 drivers are confirming previous FY 11 channel results: excluding currency impact and DOS
t e ds
trends. transfer in India to third parties management, the 2011
p g ,
performance is slightly positive.
9

10. Brands & Collections
UCB 50% Sisley 16%
(52%) (16%)
UCB Kids & Sisley Young
Kids 32% Playlife 2%
(30%) (2%)
Note: ( ) FY 10 data 10

11. Brands: initiatives
Brand & Values Brand & Product Brand & Store
United CColors of Benetton
f United Colors of Benetton United Colors of Benetton
UNHATE: New worldwide institutional Special Collections proposals. New openings and refurbishment
communication campaign in Fall 11. Dedicated collection development. of existing stores with the new
Lana Sutra: Communication of Product innovation and research. concept “Lissoni”.
Benetton Values through the dialogue
with the world of art from September UCB Kids Sisley & Playlife
2011. Updated collection structure. Introduction of new store concept
Product line and offer increase. at the end of 2011.
Sisley
Definition of the new Independent Sisley
life-style philosophy, supported by a Fashion content & affordable pieces
new communication campaign. increase in collection proposals.
New communication vehicles, approaching New Media and Digital applications.
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12. Brands & Values
United Colors of Benetton
UNHATE - The new worldwide communication campaign, with the aim of Lana Sutra - Dialogue with the world of
contrasting the culture of hatred and p
g promote brand values, as tolerance and
, art, proposing targeted communication
peace, through ironic and provocative images. initiatives.
In the first days of the UNHATE campaign, global participation placed it among 15 art pieces installation in selected
the top five topic trends worldwide on both Twitter and Google, with Facebook flagship, conceived as a homage to love,
g p g
fan numbers increasing by 60%; over 3000 articles published and more than covered by coloured wool threads,
600 television reports in 60 countries around the world. emphasizing two key elements of the
brand DNA.
UNHATE Foundation: new Benetton Group foundation strengthening the
foundation,
group’s social responsibility strategy, through on-going initiatives.
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13. Brands & Product
UCB Sisley UCB Kids
Management strengthening , adding Collections offer renewal adopted Reviewed offering structure,
new roles and people in creative and from S/S 12, segmenting product starting from S/S 12.
merchandising structure. offer by function and style.
Offering Structure: Special Collections Launch of targeted product Cosmopolitan mood for collection
adopted starting from S/S 11. initiatives, supporting brand values proposals.
On-going roll-out and new total look
g g and improving brand identity.
p g y Remarkable growth driven by
g y
deliveries in S/S 12 collections. product offer and initiatives
adopted in international markets.
Product innovation and research: Identification of the key product
new exclusive knitwear proposals,
p p , categories, highlighted in new store
g , g g
representative of Group heritage. concept.
13

14. Brands & Store
United Colors of Benetton Sisley Playlife
On-going roll-out of “Lissoni” concept, Introduction of the new concept “Welcome Home”: development of
spread in over 30 Countries. store: first opening in September. the new innovative store concept
New display approach proposed. New format adopted for openings and shopping experience, based
and refurbishments.
refurbishments on a multi-brand store approach
multi brand approach.
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15. Innovation & Experimentation
Live Windows
Creation of innovative sales spaces, supported by
continuous experimentation with new technologies:
“Benetton Live Windows project.”
p j
Use of the latest technologies, introduced in the
main flagship stores, creating an innovative
consumer experience.
The “Studios”
New area in the headquarter, dedicated to development activities related to the Store:
q , p
New concept development. Visual merchandising activities.
Innovative selling space project
project. Catwalk & Products Presentation.
Presentation
15

16. Brands & Multiple Digital Initiatives
Product websites benettongroup.com Applications
Complete restyling of the product Launch of the new-look Launch of product and corporate
websites for all Group brands - United benettongroup.com, a portal applications for iPhone, iPad,
Colors of Benetton, Sisley and Playlife.
, y y for all institutional areas and y
BlackBerry and Android.
innovative Investor Relations
Creation of two international blogs : section, entirely revised and Facebook: more than 1.000.000
United Blogs of Benetton & enhanced with new sections fans at year end, compared with
IndependentPeople for Sisley. & functions
functions. 250.000 at the beginning of 2011.
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17. g g
Financial Highlights
17

18. 2011 Prel. – Highlights
€M
Revenues % Ordinary Ebit on Sales
2,031 2011 prel. ~7.5% 2011 prel.
2,053 2010 8.6% 2010
Performance reported: -1.1%. Costs pressure: large negative impact (~100€
Performance currency neutral: -0 4%
-0.4%. mio)
mio).
Negative impact from currency: -14€ mio. Operating expenses actions: remarkable SG&A
Emerging markets: double digit growth. reduction.
Negative one-time costs and positive impact
currency.
from currency
Net Income Net Debt
> 70 2011 prel. ~ 550 2011 prel.
102 2010 486 2010
Negative impact from currency hedging (in the Net Debt increase.
range of -10€ mio), compared with positive impact Q4 11: NWC improvement.
last year (+12€ mio) Commercial investments dedicated to the
Lower tax rate (~35%) vs. last year (38.6%). network.
18

19. Net Debt
€M
749
589
2010 556 645
543 ~550
2011 Net Debt Increase.
534 486
508 - On-going investments.
486
- NWC increase.
- Shares buy-back
Initial Q1 H1 9M Year End
Net Debt Net Debt programme.
N t debt and Cash Flow Generation:
Net d bt d C h Fl G ti
31.12.2011 (~550) ~200
4th quarter analysis.
30.09.2011 (749)
Cash Flow Q4
Cash flow improvement in the last part of 2011 vs.
2010, including NWC control and reduction
31.12.2010 (486)
+159
30.09.2010 (645)
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20. g
Looking forward
20

21. Looking forward
Macroeconomic assumption Strategic Focus
Risky environment and challenging scenario; Strengthening growth stimulation activities, focusing
weaking outlook for the euro area and slower trend on three cornerstones:
for the Mediterranean Countries. Focus on brand building.
Enhancing and improving product.
Downside household consumption in consolidated
p Continuous renewal of store network.
countries and tight credit access.
Raise the appeal of the point of sales, creating an
Emerging market outperforming again other markets innovative consumer experience and focusing on
0
in 2012. sell-out performance and store’s profitability.
New Initiatives Profitability
Development and introduction of new initiatives, Cost inflation: raw material pressure, mostly in the
supporting on-going growth stimulation. first part of 2012, as cotton and wool level at
product order placement.
Focus on increasing brands’ visibility in most Labour cost pressure in selected Group Sourcing
important and trendiest cities worldwide. Regions.
Sourcing flexibility, facing cost pressure, and
Set-up of markets priority and leverage on new
increasing efficiency through product category
channel opportunities.
allocation.
allocation
On-going initiatives related to cost control.
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22. 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.
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