Safilo Group S.p.a. · MIL:SFL
Safilo — Q1 2023 Earnings Presentation
19 slides from Safilo's earnings presentation, May 3, 2023
Slide 1: Q1 2023 Trading Update
Slide 2: Disclaimer
1/2 DISCLAIMER This presentation may contain forward looking statements based on current expectations and projects of the Group in relation to future events. Due to their specific nature, these statements are subject to inherent risks and uncertainties, as they depend on certain circumstances and fa
Slide 3: CEO statement on first quarter 2023
“The first quarter of 2023 broadly met our expectations for the beginning of the year, reflecting the continuation of some of the main business drivers that had characterized the second half of last year. Our home brands and our core licenses again registered good progress in Europe and in emerging
Slide 4: A resilient quarter despite expected headwinds
ws = < fa) o = o E a < m4 Be 0 N ° N ic] A RESILIENT QUARTER DESPITE EXPECTED HEADWINDS Double-digit expansion for Carrera and Polaroid, and solid momentum for core licenses Smith soft on high comps, while Blenders unfavoured by weather conditions in key states Sales growth continuing in Europe and
Slide 5: Net Sales Q1 2023
NET SALES 90 Q1 2023 287.2 em rs -0.4% @cFX 4 43.2% organic! vs the strongest quarter in 2022 (Q1 2022 +14.3% vs 2021)
Slide 6: Net Sales in Europe
NET SALES IN EUROPE 121.6em & +3.8% & +4,.0%@cFX w = <z a o > io) z a < 4 = x) N ° N ic] 4 +5.5% organic! Carrera and Polaroid, up double-digits Italy, Spain, France and CEE, best performing markets Broad-based growth by channel, particularly strong at independent opticians and chains. Sales to Gran
Slide 7: Net Sales in North America
— ar NET SALES IN NORTH AMERICA See fang Sm Ty /124.7 em 3.4% -7.2%@cFX w = <z a o > io) z a < 4 = x) N ° N ic] -0.9% organic! Still soft order intake of entry and mid-tier products, plus phase-out sales in the base period. Momentum continuing in premium/high-end segments Positive quarter for Smith
Slide 8: Net Sales in the Rest of World Q1 2023
NET SALES IN THE REST OF WORLD 9 QI 2023 28.8 em & 420.3% 4 +16.6%@cFX e Strong commercial development of Brazil and Mexico, with Carrera, Polaroid and core licenses up double-digits ® Focused events to engage with the main local partners delivering business growth in India and Middle East
Slide 9: Net Sales in Asia Pacific Q1 2023
NET SALES IN ASIA PACIFIC 9 QI 2023 12.0«m -3.0% -2.6%@cFX © Still soft Chinese market due to prudent wholesale demand. Trend change expected from Q2, starting with the Shanghai optical fair in April Travel retail business and Australia the key positive drivers
Slide 10: Gross Margin
GROSS MARGIN Q1 2023 GROSS PROFIT i] 67.8 €M GROSS MARGIN 5 8 A & +7.9% 4 +340 bps © Positive price/mix sales dynamics © Receding transport & energy costs
Slide 11: Adjusted EBITDA Margin
ADJUSTED? EBITDA MARGIN ¢ Q1 2023 ADJ.? EBITDA 32.4 €M ADJ.? EBITDA MARGIN 1 1 03% #+1.3% = bps © SG&A expenses ca +9% driven by ongoing investments in marketing & advertising and digital development F | a ai fo~ ad vy
Slide 12: Group Net Debt
GROUP NET DEBT GROUP NET DEBT 113.4 Group net debt pre IFRS-16 69.6 Slightly positive Free Cash Flow
Slide 13: Eyewear since 1956
EYEWEAR SINCE 1956 x COACHELLA
Slide 14: Appendices
Slide 15: Notes to the presentation
16 NOTES TO THE PRESENTATION 1 Organic sales performance is provided at constant exchange rates and includes only the home brands and not terminated licenses, present in both of the compared periods, excluding the business attributable to the supply contract with Kering Eyewear. 2 InQ1 2023, the adj
Slide 16: Q1 2023 Net Sales by Geography
17 Q1 2023 NET SALES BY GEOGRAPHY Change at current forex Change at constant forex {Euro million) Q12023 % Q12022 % Reported Reported Organic! North America 124.7 43.4 129.0 45.7 -3.4% -7.2% -0.9% Europe 1216 42.3 W172 415 +3.8% +4.0% +5.5% Rest of the world 28.8 10.0 23.9 8.5 +20.3% +16.6% +16.7% A
Slide 17: Q1 2023 Trading Update
18 Q1 2023 TRADING UPDATE ‘eon ‘eon (Euro million) Q12023 rccles Q12022 creates % Change Net sales 287.2 282.6 +1.6% Gross Profit 167.8 58.4% 155.5 55.0% 47.9% EBITDA 29.3 10.2% 28.7 10.2% +1.9% Adjusted EBITDA” 32.4 11.3% 32.0 11.3% +1.3% IFRS 16impact on EBITDA 3.0 2.6 IFRIC SaaS impact on EBITDA
Slide 18: Exchange Rates
19 EXCHANGE RATES As of (Appreciation)/ ‘Average for (Appreciation]/ Depreciation Depreciation March 31, Decomber 31, March 31, March 31, Currency Code 2023 2022 % 2023 2022 % US Dollar usD 1.0875 1.0666 2.0% 1.0730 1.1217 4.3% Hong-Kong Dollar. HKD 8.5367 8.3163 27% 8.4106 8.7551 3.9% Swiss Frane C
Slide 19: Strong Brand Portfolio
STRONG BRAND PORTFOLIO TO REACH A BROAD AUDIENCE OF TARGET CONSUMERS * The right offer for all distribution channels, for all customer types CARRERA SMITH Pr PR * Centered on contemporar nporary BANANA REPUBLIC BOSS CAROLINA HERRERA 4 segment where the highest MARA Fennaon veal oy onto aes demand of