Smcp Sa · EURONEXT:SMCP

Smcp Sa — H1 2020 Earnings Presentation

29 slides from Smcp Sa's earnings presentation, Sep 4, 2020

1. Slide 1: 2020 Half-Year results

   SMCP sandro + maje - claudie pierlot - de fursac sandro 2020 Half-Year results September 4, 2020 Daniel Lalonde, CEO Philippe Gautier, CFO & Operations Director

2. Slide 2: Disclaimer

   Disclaimer Certain information contained in this presentation includes projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such forward-looking statements are not guarantees of future performance of the Group. Actual results or per

3. Slide 3: Daniel Lalonde, CEO

   Daniel Lalonde, CEO

4. Slide 4: 2020 H1 results — Key Financial Highlights

   2020 H1 results — Key Financial Highlights SALES GROWTH Adj. EBITDA Adj. EBIT - 31.0% reported €55.1m (60.9%) - 3 3 0 5% on organic basis 14. 8% of sales Sales: €372.8m -€29.7m NET INCOME Pre-tax operating FCF NET FIN. DEBT €88.)m €49.4m incl. -€42.6m of Goodwill impairment €445.1m (Leverage: 5.5x e

5. Slide 5: H1 2020 sales dynamics by brand and region

   H1 2020 sales dynamics by brand and region Mainland China returning to growth in June (Organic sales growth) AMERICAS FRANCE 45.5% -33.8% — Sales breakdown ‘oe 25% By brand 48% By region ” ew 29% = Sandro = Maje = Other brands = France #EMEA = Americas = APAC 36% —— Group Key figures —— o Reported s

6. Slide 6: Philippe Gautier, CFO & Operations director

   Philippe Gautier, CFO & Operations director

7. Slide 7: Strong cost-saving measures to mitigate Covid-19 impact: more than €60m

   Strong cost-saving measures to mitigate Covid-19 impact: more than €60m! Variabilization of more than 50% of OPEX! Excl. IFRS 16 Organic sales Gross margin OPEX! 372.8 71.5 -263.7 (Em) (%) (€m) yoy (%) -33.5% 4.8 pts -19.0% © Gross margin at 71.5% impacted by a more promotional market and to a lesse

8. Slide 8: H1 income statement (IFRS 16)

   €m - IFRS 16 H1-19 H1-20 Adjusted EBITDA 141.0 55.1 % of sales 26.1% 14.8% D&A -74.4 -84.8 Adjusted EBIT 66.5 -29.7 % of sales 12.3% -8.0% Allocation of LTIP -6.7 -5.0 Current operating income 59.8 -34.7 Non-recurring expenses -4.1 -46.0 Goodwill impairment - -42.6 Others -4.1 -3.4 Operating profit

9. Slide 9: Operating free cash flow, capex and working capital

   €19.0m -€49.4m H1 2019 H1 2020 €33.9m €29.1m €178.8m €188.1m €215.2m H1 2019 H1 2020 H1 2019 FY 2019 H1 2020 o o o

10. Slide 10: Net financial debt evolution

    +€7.9m 5.5x 2.2x +€0.3m +€49.4m €445.0 m €387.4 m Dec. 2019 Op. FCF Tax Financial Charges June 2020 Net Financial debt Net Financial debt o o o o

11. Slide 11: H1 2020 excl. IFRS 16 and IFRS 16 impact

    H1 2020 IFRS 16 H1 2020 P&L excl. IFRS 16 impact incl. IFRS 16 Adjusted EBITDA -6.2 +61.3 55.1 D&A -26.3 -58.5 -84.8 Adjusted EBIT -32.6 +2.8 -29.7 Financial result -6.5 -7.5 -14.0 Income tax 5.0 +1.3 6.3 Net income -85.1 -3.3 -88.5 H1 2020 IFRS 16 H1 2020 Balance sheet excl. IFRS 16 impact incl. IF

12. Slide 12: Daniel Lalonde, CEO

    Daniel Lalonde, CEO

13. Slide 13: Conclusion

    Conclusion Equipped to face this challenging period Geographically well-balanced portfolio of strong international brands and solid traction with Chinese customers Well-positioned to leverage strengths in e-commerce Strong action plan to mitigate the effects of COVID Enhanced financial flexibility t

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15. Slide 15: Next financial publication

    Next financial publication © Q3 20 sales and strategic update

16. Slide 16: Appendix

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17. Slide 17: Sales by region and brand

    In €m Q1-19 Q1-20 Reported % Organic % Q2-19 Q2-20 Reported % Organic % H1-19 H1-20 Reported % Organic % France 96.0 85.7 -10.7% -19.4% 87.5 47.3 -46.0% -49.6% 183.5 133.0 -27.5% -33.8% EMEA 79.4 70.9 -10.8% -11.9% 79.4 35.8 -54.9% -55.1% 158.8 106.6 -32.8% -33.5% Americas 31.7 26.9 -15.1% -17.4% 37

18. Slide 18: Number of DOS and POS by region and brand

    Var H1 20 Var H1 20 Var H1 20 H1-19 2019 Q1-20 H1-20 Number of DOS vs. Q1 20 vs. FY 19 vs. H1 19 (excl. DF) (incl. DF) (incl. DF) (incl. DF) (incl. DF) (incl. DF) (excl. DF) By region France 481 528 522 524 +2 -4 -14 EMEA 385 413 413 415 +2 +2 +27 Americas 146 162 164 164 - +2 +18 APAC 195 - 219 - 2

19. Slide 19: Income statement (IFRS 16)

    €m - IFRS 16 H1-19 H1-20 Sales 540.3 372.8 1 Purchases and changes in inventories -197.6 -142.8 2 Gross Margin 342.8 230.0 Other operating income and expenses -85.1 -73.1 Personnel costs -116.7 -101.8 Adjusted3 EBITDA 141.0 55.1 Depreciation and amortization expense -74.4 -84.8 3 Adjusted EBIT 66.5

20. Slide 20: Balance sheet - Assets

    As of Dec. 31 As of June 30, BALANCE SHEET - ASSETS (€m) - IFRS 16 2019 2020 Goodwill 683.2 631.3 Intangible right-of-use assets 1 284.2 1 260.3 Property, plant and equipment 93.9 90.2 Non-current financial assets 22.1 21.5 Deferred tax assets 43.9 39.4 Non-current assets 2 127.2 2 042.9 Inventories

21. Slide 21: Balance sheet - Equity & Liabilities

    As of Dec. 31 As of June 30, BALANCE SHEET - EQUITY & LIABILITIES (€m) - IFRS 16 2019 2020 Share capital 82.2 82.7 Share premium 951.2 950.7 Reserves and retained earnings 162.9 75.7 Treasury shares -6.5 -2.0 Total Equity - Group share 1 189.8 1 107.1 Total Equity 1 189.8 1 107.2 Non current lease l

22. Slide 22: Net financial debt

    NET FINANCIAL DEBT (€m) As of Dec. 31, 2019 As of June 30, 2020 Non current financial debt & other financial liabilities -436.8 -624.2 Bank overdrafts and short-term financial liability -3.0 -94.4 Cash and cash equivalents 52.3 273.5 Net financial debt -387.4 -445.1 LTM adjusted EBITDA (excl. IFRS 1

23. Slide 23: Management gross margin to adjusted EBITDA

    €m H1-19 H1-20 2 Management Gross margin 3 412.3 266.6 % of sales 76.3% 71.5% Direct costs of points of sales -222.6 -179.1 % of sales -41.2% -48.0% Retail margin 189.7 87.5 % of sales 35.1% 23.5% SG&A -102.9 -93.7 % of sales -19.0% -25.1% IFRS 16 impacts 54.2 61.3 % of sales 10.0% 16.5% Adjusted 4

24. Slide 24: Adjusted EBITDA by brand

    €m - IFRS 16 H1-19 H1-20 Adjusted 1 EBITDA 141.0 55.1 Sandro 67.5 26.3 Maje 60.5 24.9 Other brands 12.9 3.9 Adjusted 1 EBITDA margin 26.1% 14.8% Sandro 25.7% 14.9% Maje 28.5% 17.8% Other brands 19.7% 7.0%

25. Slide 25: Cash flow statement (IFRS 16)

    CASH FLOW STATEMENT (€m) - IFRS 16 H1 2019 H1 2020 Adjusted EBIT1 66.5 -29.7 D&A 74.4 84.8 Changes in working capital -28.9 -9.3 Non-recurring expenses -5.0 -4.8 Income tax expense -21.9 -0.3 Net cash flow from operating activities 85.3 40.6 Capital expenditure -33.9 -29.1 Net cash flow from investi

26. Slide 26: Operating FCF

    OPERATING FCF (€m) H1-19 H1-20 Adjusted EBIT 66.5 -29.7 D&A 74.4 84.8 Change in working capital -28.9 -9.3 Non-recurring expenses -5.0 -4.8 Capital expenditure -33.9 -29.1 Income tax -21.9 -0.3 Reimbursement rent lease -54.2 -61.3 After-tax operating Free cash-flow -2.8 -49.8 Income tax -21.9 -0.3 P

27. Slide 27: Working capital

    Var. H1 20 €m H1-19 FY-19 H1-20 vs. H1 19 Inventories and work in progress 233.6 247.9 262.3 28.6 Trade receivables 58.4 58.4 38.8 -19.6 Trade payables -113.2 -118.3 -85.9 27.4 Operational working capital 1 178.8 188.1 215.2 36.3 As a % of LTM sales 16.8% 16.6% 22.3% +5.5pts Other assets & liabiliti

28. Slide 28: Shareholding structure and voting rights as of June 30, 2020

    Shareholding structure and voting rights as of June 30" 2020 Capital (%) Ruyi & Co-investors 53.4% Free float (51.3%)! 39.3% (38.3%)! Founders, Managers & Treasury shares 73% ‘As of June 30%, 2020 the share capital of the Company is composed of 75,170,290 shares (including 1,052,530 Free Preferred S

29. Slide 29: Definitions of non-IFRS financial measures

    Definitions of non-IFRS financial measures “Sales” consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. “ Organic sales growth” corresponds

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