Slide 1: FY 2019 Results Conference Call
FY 2019 Results Conference Call 9 April 2020
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 Relator 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, experience as a Top Manager Senior Controller last 5 y
Slide 4: Index
Index 1. Business updates 2. Pattern and Sustainability 3. Financials 4. Market 5. Group Strategy & Outlook 2020 6. Appendix • Group Overview • Business and Process • Investment Case
Slide 5: Business updates
Business updates
Slide 6: The Italian Hub of Luxury Fashion Engineering
Group Overview / The Italian Hub of Luxury Fashion Engineering “ The entry of the S.M.T. knitwear factory within the Pattern Group is a fundamental step, after the listing, towards our goal: “ to create the Italian hub of luxury fashion engineering. - Luca Sburlati, Pattern S.p.A. CEO 6
Slide 7: Pattern: Landmark for Luxury Fashion Engineering
Pattern: Landmark for Luxury Fashion Engineering Pattern S.p.A is an Italian company among the most important operators in the field of engineering, development, prototyping and production of fashion lines for the most prestigious brands worldwide exclusively for the top luxury range, in the segment
Slide 8: Società Manifattura Tessile (S.M.T.)
Società Manifattura Tessile (S.M.T.) Pattern thus confirms the expected growth path and announces the entry of S.M.T. in the Group, this achievement will allow the Piedmontese company (Pattern) to enter the luxury knitwear sector which up until now was not a part of the company’s activities. The uni
Slide 9: Pattern and Sustainability
Pattern and Sustainability
Slide 10: Corporate Social Responsability 2020 Clean Chain
Corporate Social Responsability 2020 Clean Chain Starting from 2015, Pattern has engaged in a process aimed at eliminating the substances deemed to be toxic or harmful by the main international standards. This procedure has been followed in conformity with the “Europe 2020” community project. Furthe
Slide 11: From Red to Green Carpet – 2023 CDP Reporting on Climate Change
“From Red to Green Carpet” – 2023 CDP Reporting on Climate Change “From Red to Green Carpet” is a five-year plan, which aims to create the same luxury on the most famous Red Carpets by Pattern Group achieves the ESG (Enviromental, Social and drastically reducing the impact on the environment. Patter
Slide 12: Pattern Responds to the UN Invitation
Pattern Responds to the UN Invitation Pattern has decided to meet the UN challenges by identifying four goals to work immediately on, with the aim of contributing to make our world sustainable. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all c
Slide 13: FY 2019 Results
FY 2019 Results
Slide 14: FY 2019 Highlights
FY 2019 Highlights € mln Revenues Adj.² EBITDA Adj. EBITDA margin €55.7 €7.2 12.9% (+26%)¹ (+33%) Adj. Net income Net Cash Adj. Net Income margin €4.7 8.4% €12.4 (+33%) (+ €8.5 m) “ 2019 ends as an extraordinary year for Pattern, full of events and satisfactions for all of us. With 2020, unfortunate
Slide 15: FY 2019 Income Statement
FY 2019 Income Statement FY 2018 (€ 000) FY 2019 % Pro-forma • Revenues at 31 December 2019 amount to Sales revenues 55,603 44,089 26% € 55.6 million compared to € 44.1 million at Other revenues 135 279 -52% 30 June 2018, showing an increase of Total Revenues 55,738 44,368 26% around 26%. Increase i
Slide 16: Revenues Breakdown
Revenues Breakdown FY 2018 (€ 000) FY 2019 % Pro-forma Italy 6,644 7,961 -17% EU 48,439 35,333 37% Extra-EU 521 795 -35% Other Revenues 135 279 -52% Total 55,738 44,368 26% Geographic footprint The geographical breakdown of sales shows a further increase in foreign sales. Italy’s share on revenues h
Slide 17: FY 2019 Balance Sheet (Use and Sources)
FY 2019 Balance Sheet (Use and Sources) (€ 000) 31-dic-19 31-dic-18 (€ 000) 31-dic-19 31-dic-18 Fixed Assets 3.589,3 1.807,6 Shareholders' Equity 17.393,7 6.914,9 Warehouse 3.435,0 3.277,9 Trade Receivables 8.005,6 3.861,3 Cash and Cash equivalents (16.073,9) (6.392,0) Other Receivables 1.332,0 1.19
Slide 18: Asset-light Business Model
Asset-light Business Model 2016-2019 Capex trend 2016-2019 Working Capital trend 1,5 1,3 1,3 2,3 1,1 4,1 0,5 0,6 0,1 2,0 0,9 0,8 0,5 0,2 8,1 0,7 0,2 6,7 0,0 0,7 0,0 3,9 2,9 2,4 0,5 0,4 1,9 3,2 3,0 3,3 3,4 0,3 0,8 0,7 0,1 0,7 (2,6) (3,5) 0,3 0,1 (5,1) (4,4) (0,9) (0,6) (1,1) (8,9) 0,3 (1,0) 0,1 0,2 (
Slide 19: Market
Market
Slide 20: Attractive Market Trends
Attractive Market Trends 4,204 Absolute Luxury Apparel Sales (€m) 12.643 Global Personal Luxury Goods 260 €B 1.165 1.378 1.408 Luxury Fashion 81 €B 1.703 2.785 Luxury Fashion Apparel 59 €B LVMH Kering Burberry PVH* Hermes RL* Other 2018 E 2017A 13 €B Absolute Luxury Manufacturing of Absolute Fashion
Slide 21: Group Strategy & Outlook 2020
Group Strategy & Outlook 2020
Slide 22: M&A as a Key Lever to Acquire New Business
M&A as a Key Lever to Acquire New Business Current competitive landscape Made in Italy 300 €m 600 €m Luxury 400 €m Strategic Group: Pattern and its competitive arena currently cover approximately Fashion Leather apparel 300€m of the 1€B approachable market Manufacturing & accessories Knitwear 300 €m
Slide 23: Outlook 2020
Outlook 2020 Despite an excellent 2019, the trend of the world economy has undergone a sudden change due to the spread of the virus called COVID-19. Looking at a medium to long term horizon, it is important to underline the following strengths of the Group: • ability to work on different areas (men,
Slide 24: Appendix
Appendix
Slide 25: 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 26: 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 2
Slide 27: Business and Process
Business and Process
Slide 28: 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 29: 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 from clients from clients from clients from clients FS Men‘s Women’s Men‘s Women’s M – FW FS Fashion Fall - Winter Fall - Winter Spring - Summer Spring Summer secto
Slide 30: 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 30
Slide 31: 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 32: 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 industry Comm. & Sustain- Prod. Supply & Industrial ICT CFO Investor ability Mgr developm. chain Esemplare
Slide 33: 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 34: Investment Case
Investment Case
Slide 35: Investment Highlights
Investment Highlights 1 Attractive market trend and strong positioning 2 Unique combination of “Made in Italy” craftmanship and avant-garde technologies 3 Innovation leadership in processes & manufacturing 4 Continuous strong cash generation 5 Highly experienced and committed management team 6 Asset
Slide 36: Follow us: Investor Relations NOMAD
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