Slide 1: FY2020 Results Conference Call
March 30, 2021 FY2020 Results Conference Call 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by Pattern S.p.A. (the ‘Company’) solely for the purposes of this presentation. This document may not be reproduced or distributed in whole or in part by any other person with any way than the Company. The Company takes no responsibility for the use of this
Slide 3: Today's speakers
Today’s speakers Luca Innocenzo Sara Sburlati Tamborrini De Benedetti CEO CFO Investor Relations Manager 7 years in Pattern 10 years in Pattern Joined Pattern in July 2018 13 years of Fashion & Luxury industry 18 years as CFO and 9 years in communication, last 5 experience as a Top Manager Senior Co
Slide 4: Index
Index 1. Group at a glance & Updates 2. FY 2020 Results 3. The Luxury Fashion Market 4. Group Strategy & Outlook 5. Pattern: Innovation 6. Pattern: Sustainability 7. Appendix • Pattern Overview • Business and Values 4
Slide 5: Group at a glance & Updates
Group at a glance & Updates 5
Slide 6: The Italian Hub of Luxury Fashion Engineering
The Italian Hub of Luxury Fashion Engineering Torino, Piemonte Luxury menswear / outerwear, sportswear and tailoring Reggio Emilia, Emilia Romagna Luxury knitwear Spello, Umbria Luxury womenswear / soft fabrics and jersey, dresses and tailoring 6
Slide 7: The Italian Hub of Luxury Fashion Engineering
The Italian Hub of Luxury Fashion Engineering Pattern: S.M.T.: Luxury Menswear Luxury Knitwear Engineering Roscini Atelier: • Both SHIMA SEIKI and • Casual and technical Luxury Womenswear STOLL production menswear, Engineering outerwear specialist technologies for men and women • Dresses and • More
Slide 8: March 2021 – Purchased an additional 29% of S.M.T.
March 2021 – Purchased an additional 29% of S.M.T. March 2020 March 2021 51% 80% On February 24, 2021, signed of a binding framework agreement for the acquisition of an additional 29% of the share capital of S.M.T., thus reaching, upon closing of the transaction, 80% of the share capital. OPERATION
Slide 9: FY 2020 Results
FY 2020 Results 9
Slide 10: PATTERN GROUP FY 2020 Highlights
PATTERN GROUP FY 2020 Highlights REVENUES EBITDA EBITDA MARGIN € 53.9M € 5.4M 10% €55.7M FY19 €5.9M FY19 10.7% FY19 NET INCOME POSITIVE NFP € 3.0M € 8.8M €3.8M FY19 €12.4M FY19 10
Slide 11: FY 2020 Highlights: A focus on SMT
FY 2020 Highlights: A focus on SMT REVENUES EBITDA EBITDA MARGIN € 19.0M € 2.8M 14.7% €18.9M FY19 €1.7M FY19 9.2% FY19 NET INCOME POSITIVE NFP € 0.041M € 1.5M NEGATIVE € 0.7M FY19 € -3.1M FY19 11
Slide 12: FY 2020 Income Statement
FY 2020 Income Statement (€ 000) FY 2020 FY 2019 Sales revenues 52,584 55,603 Other revenues 1,279 135 Total Revenues 53,864 55,738 Increase in fixed assets for internal work - - Change in inventories 156 (400) Value of production 54,020 55,338 Raw materials (15,514) (16,462) Cost of services (19,04
Slide 13: Revenues Breakdown
Revenues Breakdown FY 2020 FY 2019 31.4% 12.0% 67.5% 87.1% 1.1% 0.9% The geographical breakdown of sales shows a significant increase in revenues from Italian clients, whose share of the total has more than doubled, rising from 12% to 31.4%. The internationalization rate of S.M.T. it is high, but lo
Slide 14: FY 2020 Balance Sheet (Use and Sources)
FY 2020 Balance Sheet (Use and Sources) (€ 000) 31-Dec-20 31-Dec-19 (€ 000) 31-Dec-20 31-Dec-19 Fixed Assets 10,849.8 3,589.3 Shareholders' Equity 20,931.5 17,393.7 Warehouse 4,288.7 3,435.0 Trade Receivables 8,682.9 8,005.6 Cash and Cash equivalents (23,619.0) (16,073.9) Other Receivables 2,059.5 1
Slide 15: NFP bridge
NFP bridge NFP as at 31 December 2020 shows a clear improvement (+ 123%) compared to the NFP as at 30/6/2020 which reported a positive figure of € 3.9 M 15
Slide 16: The Luxury Fashion Market
The Luxury Fashion Market 16
Slide 17: Fashion Industry in 2020 post COVID19
Fashion Industry in 2020 post COVID19 Change in turnover 9M 2020/2019 by destination region -14,8% -19,3% -21,8% -23,7% -29,0% Total Latin America Europe North America Asia & O ceania Made by -4,3% industrial -23,7%Japan multinational fashion -10,1% Rest of Asia groups Sources:Report Area Studi Medi
Slide 18: Pattern outperforms the Italian luxury fashion industry
Pattern outperforms the Italian luxury fashion industry Sources: Management analysis and estimates on data published by the Companies 18
Slide 19: Pattern outperforms the Italian luxury fashion industry
Pattern outperforms the Italian luxury fashion industry Listed Italian Luxury fashion companies // 2019 VS 2020 Net Income Sources: Management analysis and estimates on data published by the Companies 19
Slide 20: Fashion Industry Recovery post COVID19
Fashion Industry Recovery post COVID19 Fashion Sales in the earlier recovery scenario by McKinsey, comparedto 2019, % Note: Scenarios intended to provide insight based on currently available information for consideration and not specific advice 20 SOURCE: MCKINSEY FASHION SCENARIOS
Slide 21: What's up in our business?
What’s up in our business? A positive competition: new entrant to the market October 2020, born Florence S.p.A, luxury fashionwear production hub in Italy, competing with Pattern Group. The holding, born thanks to the initiative of Fondo Italiano d’Investimento and private equity Vam Investments, ag
Slide 22: Group Strategy & Outlook
Group Strategy & Outlook : 22
Slide 23: Group Strategy
Group Strategy Made in Italy Current competitive landscape Luxury 600 €m Fashion 400 €m 300 €m Strategic Group: Manufacturing Leather apparel Pattern and its competitive arena currently cover approximately & accessories 300€m of the 1€B approachable market Portion of the market currently not 300 €m
Slide 24: Outlook 2021
Outlook 2021 As for the economic trend, the outlook for 2021 is still bleak, with the market expected to suffer, as it did in 2020, with a sluggish first half of the year (the only exception being the Far East market) and a second half in which probably the first signs of recovery will emerge in Wes
Slide 25: Pattern: Innovation
Pattern: Innovation 25
Slide 26: 3Dimention Virtual Prototyping
3Dimention Virtual Prototyping Today 3D prototyping represents one of the most important company’s strategic investments with a dedicated Digital Team. Pattern uses the most advanced fashion prototyping software program which allows to bring to life virtual models by replicating 2D CAD patterns into
Slide 27: New Digital Warehouse 4.0
New Digital Warehouse 4.0 Completed in autumn 2020, the new warehouse is an innovative system state-of-the-art in the logistic field. A cutting-edge warehouse, 100% digitalized, where, thanks to RFID technology, every single garment is unequivocally identified and traced. 27
Slide 28: Pattern: Sustainability
Pattern: Sustainability 28
Slide 29: ESG Rating 2020
ESG RATING 2020 PATTERN ACHIEVES A PLACE ON THE PATTERN OVERPERFORMS THE MARKET 2020 CDP SUPPLIER ENGAGEMENT LEADERBOARD Pattern confirms its participation to the Climate Change Reporting managed by the international organization CDP and achieves a 2020 ESG Pattern joins the other 400 international
Slide 30: Geothermal Plant
GEOTHERMAL PLANT 140 KW geothermal plant projected to meet the energy needs required for heating and cooling the New Digital Warehouse and part of the existing laboratory 30
Slide 31: Photovoltaic Plant
PHOTOVOLTAIC PLANT In May 2020 Pattern accomplished the installation of the photovoltaic plant, now 100% operating The plant makes the company almost completely self-sufficient, fully covering energy needs in the warmer months. With the achievement of this goal, Pattern avoids 28 tons CO2 emissions
Slide 32: From Red to Green Carpet
FROM RED TO GREEN CARPET “From Red to Green Carpet” is a five-year plan announced in 2018 by Pattern. The aim is to create the same luxury but drastically reducing the impact on the environment without compromising the quality. Pattern has identified three main goals to achieve: BEING CARBON ECONOMI
Slide 33: Pattern adheres to the ONU's Fashion Industry Charter for Climate Action
Pattern responds to the U.N. invitation on 2030 Agenda for Sustainable Development Pattern adheres to the ONU’s “Fashion Industry Charter for Climate Action” Pattern is the first Italian company to join the UNFCCC’s Fashion for Global Climate Action initiative as a signatory to the Fashion Industry
Slide 34: Appendix
Appendix 34
Slide 35: 1. Pattern overview
1. Pattern overview "Un es, aia . wn Desi oe gen : Fa ng TUNWAY = SAMPLES jacke 5 DoWnjacket runway. 2 Suits develop Downjacket § Clothing £ runway Pie) uterwear Fit jacket SHIRT 05 suit s SAMPLES. Outemear mj = DESIGN Outerwear jack Clothing 35
Slide 36: History of Continuous Growth
History of Continuous Growth Set up of the First Italian brand to First Acquisition of Roscini – Borsa Italiana Collegno obtain the SA8000 Social Sustainability Report Spello plant, reinforcing IPO plant Accountability Certificate (GRI index) the women segment 2000- 2009 2012 2013 2014 2015 2016 201
Slide 37: HR - Highly Experienced and Committed Management Team
HR - Highly Experienced and Committed Management Team Board of Directors F. Botto and F. Martorella, founders and owners, are recognized and valued Corporate Technical Group professionals among fashion industry, Comm. & Sustain- Prod. Supply & Industrial ICT CFO Investor ability Mgr developm. chain
Slide 38: Corporate Governance
Corporate Governance Board of Directors Luca Sburlati Francesco Martorella CEO Fulvio Botto President Vice President Anna Maria Emilio Paolucci Roscini Independent Innocenzo Claudio Director Director Tamborrini Saracco Director Director Shareholder Structure *Note: direct and indirect shareholding S
Slide 39: Updates December 4, 2020
Updates December 4, 2020 The Ordinary and Extraordinary Shareholders’ Meeting: On 4th December 2020 was met the Shareholders’ Meeting in ordinary and extraordinary sessions and approved: The distribution of a dividend, gross of withholding tax, of € 0.05 per share, for a total of € 685,769.20; The S
Slide 40: Stakeholder initiatives during COVID
Stakeholder initiatives during COVID Local Community: -Engineering and production of top-quality face mask for local community (3 plants Torino, Spello and Correggio) -Direct support to design schools maintained during lock-down Employees: -Implementation of a strong working protocol with several di
Slide 41: Pattern wins the Premio dei Premi 2020 award
December 2020 - Pattern wins the "Premio dei Premi" 2020 award Prize is awarded by the President of the Italian Republic, Sergio Mattarella Pattern is selected, amongst the winning companies of the XI Edition of “Imprese x Innovazione” award - organized by Confindustria. This prestigious recognition
Slide 42: 2. Business and Values
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Slide 43: How the fashion sector works
How the fashion sector works Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec First sketch First sketch First sketch First sketch W – FW FS from clients from clients from clients from clients Men‘s Women’s Men‘s Women’s M – FW FS Fashion Fall - Winter Fall - Winter Spring - Summer Spring Summer secto
Slide 44: Pattern's business model
Pattern’s business model Engineering and Prototypes and Manufacturing & samples production chain Quality control Modelling Insourcing level Full insourcing Full outsourcing High degree of flexibility Long-lasting established Multiple levels of and rapidity of response, Control over the entire relati
Slide 45: Pattern is fully integrated with Italy's Best Suppliers and Façonists
Pattern is fully integrated with Italy’s Best Suppliers and Façonists Façonist / Contract Suppliers Pattern / Project Engineering Manufacturer Selection of suppliers High fragmentation of Pre-production minor suppliers samples are prepared internally to allow clients to pre-verify Full control over
Slide 46: Pattern's Key Business Values
Pattern’s Key Business Values Human Resources Technology and Human Resources Sustainability R&D Unique lavorations Quality assurance Circular economy Source: Management 46
Slide 47: Technology and R&D
Technology and R&D Technology For prototyping, Pattern has been investing for the last 8 years in the latest CAD technologies Introduction of a more advanced plotting machine, up to date with the latest machinery (heat-sealing, ultrasound) 3D CAD, advanced PDM and breakthrough production technologie
Slide 48: Follow us
Follow us: Investor Relations NOMAD Sara De Benedetti CFO SIM sara.debenedetti@pattern.it ecm@cfosim.com Sede Legale e Amministrativa Via Italia, 6/A 10093 Collegno (TORINO) Italy