F.i.l.a. - Fabbrica Italiana Lapis Ed Affini S.p.a.MIL: FILA

.I.L.A. S.p.A. 9M Results Presentation & Capital Markets Day

· Issued by F.i.l.a. - Fabbrica Italiana Lapis Ed Affini S.p.a.

2

  1. Quarterly Results Q3 2024
  2. Investment Highlights
  3. F.I.L.A. Overview
  4. DOMS Industries
  5. Strategic Pillars
  6. Financial Overview
  7. Closing Remarks

Appendices

CAPITAL MARKETS DAY

Massimo Candela

Luca Pelosin

CEO

Chief Operations & HR

Cristian Nicoletti

Piero Frova

CFO

CMO School & Office

3

CAPITAL MARKETS DAY

  1. Quarterly Results Q3 2024
  2. Investment Highlights
  3. F.I.L.A. Overview
  4. DOMS Industries
  5. Strategic Pillars
  6. Financial Overview
  7. Closing Remarks

Appendices

4

Q3 2024 Highlights

  • FILA Q3 2024 results confirm the positive trends in profitability, free cash flow generation and deleverage, as well as continuing growth in the valuation of FILA's 30.6% stake in DOMS Industries
  • Core Business Sales: Q3 2024 at +1.3% on a comparable FX basis, leading to 9M result of -4.2% (-2.0%on a comparable FX basis), still reflecting one-offSAP EWM disruption at Dixon USA in Q1, coupled with adverse currency effects in Central-SouthAmerica
  • Adjusted EBITDA: growth of +3.7% to 9M 2024 (+5.6% ex IFRS 16), with margin improvement to 21.0% (vs 19.4% in 2023) thanks to a favourable product mix coupled with ongoing efficiency actions
  • Free Cash Flow to Equity: 9M result of -€0.1m vs +€6.4m in 2023 (incl. DOMS), with significant improvements in Capex and Interest Expenses, well on track to meeting 2024 guidance
  • Net Bank Debt: €266.1m in Q3 2024 leading to Net Bank Debt to LTM Adjusted EBITDA ratio of 2.3x, thanks to strong cash flow generation, and despite the payment of €36.5m dividends in 2024
  • Adjusted Group Net Profit: +15.1% growth in Adjusted Net Profit to 9M 2024, including pro-ratashare of DOMS Net Profit up to September 2024

CAPITAL MARKETS DAY

2024 GUIDANCE

  • Guidance for FY 2024 is confirmed: Sales flat vs 2023 on an organic basis at comparable FX, mid single digit EBITDA growth, and Free Cash Flow to Equity in the €40-50mrange

5

Snapshot Q3 2024 Results

Core Business Sales (€m)

Reported: -4.2%

Comparable FX: -2.0%

515.2

493.4

9M 2023

9M 2024

Adjusted Group Net Profit (€m)

+15.1%

Including DOMS

Jan-Sep 2024

37.843.5

9M 2023

9M 2024

CAPITAL MARKETS DAY

Adjusted EBITDA (€m)

19.4%

Margin +1.6%

21.0%

incl. IFRS 16: +3.7%

excl. IFRS 16: +5.6%

99.9

103.5

10.6

9.3

IFRS 16

94.3

89.3

effect

9M 2023

9M 2024

Net Bank Debt (€m)

-€100.9m from DOMS IPO & Cash Flows

+€36.6m

o/w €36.5m

2024 dividends

367.0

229.5266.1

30/09/2023 31/12/2023 30/09/2024

Note: data on Sales and EBITDA with impact of DOMS and IFRS 16 included in the Appendices

6

Q3 2024 Core Business Sales

9M 2023

9M 2024

Delta

Comparable

(€)

FX (€)

Q3 2023

Q3 2024

Delta

Comparable

(€)

FX (€)

CAPITAL MARKETS DAY

Key Highlights

Sales Q3 results grew +1.3% on a comparable FX basis (-2.0% YTD). Negative currency impact mainly regarding South America

Total Fila Group

North

America

Europe

C&SA

Asia

RoW

515.2

266.9

(51.8%)

168.9

(32.8%)

65.8

(12.8%)

11.0

(2.1%)

2.6

(0.5%)

493.4

-21.8m

-10.1m

-4.2%

-2.0%

-20.0m

-19.0m

246.9

(50.0%)

-7.5%

-7.1%

171.4

+2.5m

+3.2m

(34.7%)

+1.5%

+1.9%

62.5 -3.3m +6.4m

(12.7%) -5.1% +9.7%

9.8 -1.1m -0.9m

(2.0%) -10.3% -8.2%

2.8

+0.1m

+0.2m

(0.6%)

+5.1%

+6.4%

163.5

160.1

-3.4m

+2.2m

-2.0%

+1.3%

84.5

-1.1m

-0.3m

83.3

(51.7%)

(52.0%)

-1.3%

-0.3%

52.0

+1.8m

+1.6m

53.8

(31.8%)

(33.6%)

+3.5%

+3.1%

22.1

-3.4m

+1.5m

18.7

(13.5%)

(11.7%)

-15.3%

+6.9%

4.1

3.3

-0.8m

-0.7m

(2.5%)

(2.1%)

-18.6%

-18.0%

0.9

+0.1m

+0.1m

1.0

(0.6%)

(0.6%)

+11.8%

+10.2%

North America Q3 results with a minor decline of -0.3% on a comparable FX basis, with solid back-to-school dynamics and despite focus on higher margin offering. 9M decline of -7.1% still reflecting one-off disruption of logistics in Q1 due to introduction of SAP EWM module

Europe Q3 positive with +3.1% on a comparable FX basis (9M +1.9%), benefiting from re-stocking trend and back-to-school performance

C&SA confirmed positive trends although affected by currency devaluations, leading to 9M growth of +9.7% on a comparable FX basis albeit decline of -5.1% on a reported basis (o/w -€8.7m in Argentina)

Note: 2023 figures excluding DOMS Industries. Figures with impact of DOMS and IFRS 16 included in the Appendices

7

Q3 2024 Adjusted EBITDA

9M 2023

9M 2024

Delta

2023

2024

(%)

Margin

Margin

Total Fila

99.9

103.5

+3.7%

19.4%

21.0%

Group

North

53.7

56.8

+5.8%

20.1%

23.0%

America

Europe

28.7

30.3

+5.4%

17.0%

17.7%

12.6

13.0

+3.6%

19.1%

20.8%

C&SA

4.9

3.2

-35.9%

44.8%

32.0%

Asia

RoW

0.0

0.3

n.m.

-1.0%

10.2%

Q3 2023

Q3 2024

Delta

2023

2024

(%)

Margin

Margin

32.8

32.7 -0.2%

20.0%

20.4%

  • 29.3 ex. € 29.6 ex.
    IFRS16 IFRS16
    18.8 19.0 +1.2% 22.2% 22.8%

8.8

8.8

+0.0%

16.9%

16.3%

3.7

3.9

+7.3%

16.7%

21.1%

1.6 0.8 -46.6% 39.0% 25.6%

0.0

0.2

n.m.

1.8% 17.3%

CAPITAL MARKETS DAY

Key Highlights

Adjusted EBITDA in Q3 stable at €32.7m (-0.2%)leading to overall growth of +3.7% to 9M 2024, in spite of the contraction in Sales

EBITDA margin improvement also in Q3 2024, leading to 9M margin of 21.0% in 2024 vs 19.4% in the prior year, thanks to the efficiency gains and mix effect, as well as a more selective commercial approach

North America EBITDA margin further improved, leading to overall 9M margin of 23.0% versus 20.1% in the prior year, despite lower Sales

Europe slightly lower margin in Q3 2024, notwithstanding 9M 2024 improves to 17.7% vs 17.0% in 2023, and despite a €0.7m loss in Russia

CS&A EBITDA increase of +7.3% in Q3 2024, improving the 9M 2024 result to +3.6%. 9M results include losses in the Dominican Republic (-€1.0m) and in

Argentina (-€0.6m) due to devaluation/

hyperinflation

Note: 2023 figures excluding DOMS Industries. Figures with impact of DOMS and IFRS 16 included in the Appendices

8

Q3 2024 Adjusted EBITDA

Adjusted EBITDA Including IFRS 16

Adjusted EBITDA Excluding IFRS 16

9M 2023

9M 2024

Delta

2023

2024

(%)

Margin

Margin

Total Fila

99.9

103.5

+3.7%

19.4%

21.0%

Group

89.3

94.3

+5.6%

17.3%

19.1%

53.7

56.8

+5.8%

20.1%

23.0%

North

49.7

53.3

+7.3%

18.6%

21.6%

America

28.7

30.3

+5.4%

17.0%

17.7%

Europe

26.2

27.8

+5.9%

15.5%

16.2%

12.6

13.0

+3.6%

19.1%

20.8%

C&SA

9.7

10.9

+12.7%

14.7%

17.4%

4.9

3.2

-35.9%

44.8%

32.0%

Asia

3.8

2.1

-44.9%

34.9%

21.5%

0.0

0.3

n.m.

-1.0%

10.2%

RoW

-0.2

0.1

n.m.

-6.1%

4.9%

CAPITAL MARKETS DAY

Q3 2023

Q3 2024

Delta

2023

2024

(%)

Margin

Margin

32.8

32.7

-0.2%

20.0%

20.4%

29.3

29.6

+1.1%

17.9%

18.5%

18.8

19.0

+1.2%

22.2%

22.8%

17.5

17.9

+1.9%

20.8%

21.4%

8.8

8.8

+0.0%

16.9%

16.3%

7.9

7.8

-0.7%

15.2%

14.6%

3.7

3.9

+7.3%

16.7%

21.1%

2.7

3.3

+23.3%

12.1%

17.6%

1.6

0.8

-46.6%

39.0%

25.6%

1.2

0.5

-59.5%

30.3%

15.1%

0.0

0.2

n.m.

1.8%

17.3%

0.0

0.1

n.m.

-3.2%

12.7%

Note: 2023 figures excluding DOMS Industries. Figures with impact of DOMS and IFRS 16 included in the Appendices

9

Free Cash Flow to Equity and Net Financial Position

(€ million)

9M 2023

9M 2024

Change

w/DOMS

ex-DOMS

Adjusted EBITDA

119.4

103.5

-15.9

Changes in net working capital

-42.3

-59.6

-17.3

Investments in tangible and intangible assets

-25.2

-6.3

18.9

Operating Cash Flow

51.9

37.7

-14.3

IFRS 16 rent payments

-12.0

-10.2

1.8

Tax payments

-12.3

-5.5

6.9

Net financial expenses

-22.2

-15.6

6.6

Net financial expenses IFRS 16

-4.2

-2.7

1.5

Non-monetary costs and other changes

10.7

1.3

-9.4

Adjusted Free Cash Flow to Equity

11.8

4.9

-6.9

Adjustments for Non-Recurring Items

-5.4

-5.0

0.4

Reported Free Cash Flow to Equity

6.4

-0.1

-6.5

(€ million)

30/09/2023

31/12/2023

30/09/2024

w/DOMS

ex-DOMS

ex-DOMS

Cash and Cash Equivalents

71.1

124.8

50.6

Financial Liabilities and Receivables

-438.1

-354.3

-316.7

Net Bank Debt

-367.0

-229.5

-266.1

Leverage ratio on Net Bank Debt

2.7x

2.1x

2.3x

IFRS 16 Net Financial Position

-445.8

-303.4

-321.6

CAPITAL MARKETS DAY

Key Highlights

Free Cash Flow to Equity of -€0.1min 9M 2024 (-€6.5mvs 2023) reflecting different dynamics vs prior year which consolidated DOMS

Q3 2024 results well on track to achieve 2024 Guidance considering that 2023 generated Free Cash Flow to Equity of €60.3m

Decline in capex of €18.9m, whereby

€25.2m capex in 2023 reflected significant investments in DOMS' production facilities, and decline in

Net Financial Expenses of €6.6m

Net Bank Debt of €266.1m in Q3 2024, compared to €367.0m in Q3 2023 (-€100.9m) due to cash flow

generation and proceeds from DOMS

IPO and despite €36.5m dividends

Leverage Ratio of Net Bank Debt

to Adjusted EBITDA falls to 2.3x in Q3 2024 versus 2.7x one year earlier

10

CAPITAL MARKETS DAY

  1. Quarterly Results Q3 2024
  2. Investment Highlights
  3. F.I.L.A. Overview
  4. DOMS Industries
  5. Strategic Pillars
  6. Financial Overview
  7. Closing Remarks

Appendices

Company analysis

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