STAR CONFERENCE. March 5-6 th, STAR Conference - Milan - March 5-6,

Transcription

1 OTTOBRE JANUARY OCTOBER STAR CONFERENCE March 5-6 th, 2008 STAR Conference - Milan - March 5-6,

2 001. MBFG 002. OPERATING & STRATEGIC HIGHLIGHTS FY 2007 INDEX 003. FINANCIAL HIGHLIGHTS FY STRATEGIC DIRECTION & OUTLOOK Appendices a. Historical financial performance b. Revenue breakdowns FY 2007 c. Leather Goods (Antichi Pellettieri) d. Fashion Jewellery (Gioielli d Italia) STAR Conference - Milan - March 5-6,

3 001. MBFG STAR Conference - Milan - March 5-6,

4 001. MBFG Who are we MBFG is a leading player in the accessible segment of the luxury goods market MBFG designs, produces and distributes world-wide a full range of luxury apparel, leather goods, and jewellery collections. Vertically integrated structure benefiting from 30 years of experience in Made in Italy Strategic focus on the accessible segment of the luxury goods market Established presence with leading brands in emerging luxury markets Extensive distribution network with 243 boutiques (85 DOS franchisees) at December 31, 2007 STAR Conference - Milan - March 5-6,

5 001. MBFG Group Structure APPAREL LEATHER GOODS FASHION JEWELLERY DIGITAL FASHION FASHION CHILDRENS WEAR HANDBAGS & FOOTWEAR LEATHER APPAREL MARIELLA BURANI JUNIOR FASHION GROUP COCCINELLE MANDELLI VALENTE LONGWAVE RENÈ LEZARD BRACCIALINI GFM ROSATO SEDOC FRANCESCO BIASIA CALGARO ABAX BALDININI FACCO SEBASTIAN STAR Conference - Milan - March 5-6,

6 001. MBFG Brands and Products MBFG manages a diversified portfolio of own and licensed brands with the objective for each to become leader in its respective market Apparel Leather Goods Fashion Jewellery HANDBAGS FOOTWEAR PRINCIPAL OWN BRANDS BOUTIQUES APPAREL LICENSES: Fuchsia (Ungaro), Anglomania (Vivienne Westwood), Mugler, Alviero Martini, Patrizia Pepe, Killah, Bogner, Phard LEATHER LICENSES: Vivienne Westwood, Warner Bros, Miss Sixty, Missoni, Luigi Borelli, Aquascutum, Gherardini, Amazon Life JEWELLERY LICENSES: John Galliano, Sweet Years STAR Conference - Milan - March 5-6,

7 001. MBFG International presence With emerging luxury markets generating over 30% of total group revenues for 2007 STAR Conference - Milan - March 5-6,

8 001. MBFG International Retail network The retail network at December 31, 2007 includes 243 monobrand boutiques (85 DOS franchisees) ITALY (104) GERMANY, AUSTRIA & SWITZERLAND (21) (29) Mariella Burani (27) Coccinelle (18) Baldinini (9) Braccialini (8) Francesco Biasia (6) Antichi Pellettieri (3) Dadorosa (Gherardini) (2) Rosato (1) Valente (1) Junior fashion EASTERN EUROPE (24) RUSSIA & BALTIC COUNTRIES (43) MIDDLE EAST & REST OF THE WORLD (22) FAR EAST & JAPAN (16) (17) René Lezard (1) Baldinini (1) Coccinelle (1) Valente (1) Gioielli d Italia REST OF EUROPE (13) (3) Mariella Burani (1) René Lezard (4) Coccinelle (2) Braccialini (2) Francesco Biasia (1) Baldinini (14) Baldinini (4) Francesco Biasia (3) Coccinelle (2) Mariella Burani (1) René Lezard (30) Baldinini (5) Coccinelle (3) Mariella Burani (3) Braccialini (2) Francesco Biasia (6) Coccinelle (4) Braccialini (4) Baldinini (3) Francesco Biasia (3) Antichi Pellettieri (1) Mariella Burani (1) René Lezard (5) Francesco Biasia (5) Baldinini (1) Braccialini (2) Mariella Burani (2) Coccinelle (1) Valente STAR Conference - Milan - March 5-6,

9 001. MBFG Dynamic Growth Since 2000, Compound Annual Revenue Growth of 23%, accompanied by more than proportional growth of Ebitda (+33%), and Ebit (+45%) (1) Revenue Growth by division Ebitda growth by division 23% average annual Revenue growth 33% average annual Ebitda growth (1) Excluding the impact of extraordinary gains; cagr including extraordinary gains is Revenues +24% ; Ebitda +36%; Ebit +46% Apparel Leather Goods Digital Fashion Jewellery STAR Conference - Milan - March 5-6,

10 002. OPERATING & STRATEGIC HIGHLIGHTS 2007 STAR Conference - Milan - March 5-6,

11 002. Operating & Strategic Highlights 2007 Operating and Strategic Highlights Focus on the Leather Goods division with: Acquisition of DADOROSA Integration of COCCINELLE Establishment of the Fashion Jewellery division Sale of the Multi-brand Retail division Focus on Emerging Markets with important new partners Further expansion of the international retail network New license agreements Further extension of MBFG brands STAR Conference - Milan - March 5-6,

12 002. Operating & Strategic Highlights 2007 The acquisition of DADOROSA Braccialini, controlled by Antichi Pellettieri, acquired Dadorosa S.r.l. from Addì Group in July 2007 Dadorosa holds the world-wide license for the production and distribution of Gherardini handbags and accessories Dadorosa manages three Gherardini boutiques located in Milan, Florence and Rome STAR Conference - Milan - March 5-6,

13 002. Operating & Strategic Highlights 2007 Integration of COCCINELLE Strategic development plans: Reinforce the identity and visibility of the brand Focus on collection structure and merchandising Increased advertising and PR Development of licensing opportunities (eyewear..) Further development of the retail network Accelerate international expansion Expand into new business segments ( travel and work ) Further exploit synergies amongst Group companies STAR Conference - Milan - March 5-6,

14 002. Operating & Strategic Highlights 2007 Establishment of the Fashion Jewellery division Establishment of the Fashion Jewellery division to complement MBFG s existing Fashion and Leather Goods operations MISSION To extend MBFG s leadership position in the European accesible luxury goods market into Fashion Jewellery OPPORTUNITY Extremely fragmented market 80% unbranded Shift towards Fashion Jewellery Old fashioned distribution STRATEGY Drive growth of the individual companies by leveraging revenue and cost synergies offered within MBFG STAR Conference - Milan - March 5-6,

15 002. Operating & Strategic Highlights 2007 The sale of the Multi-Brand Retail division On July, 2007 MBFG announced the sale of its Multi-Brand Retail Division to Abacus Invest, a private equity fund based in Italy The division includes Revedi, Bernie s and Don Gil for a total of 97 stores MBFG has agreed to reinvest 15 million in the company that has been established by Abacus Invest to house the Group s multi-brand retail operations The transaction is consistent with the Group s strategy to focus on its leather goods and fashion jewellery businesses, STAR Conference - Milan - March 5-6,

16 002. Operating & Strategic Highlights 2007 Focus on Emerging Markets Represent a key growth driver for MBFG Emerging markets generated 30% of MBFG revenues in 2007 Emerging markets have grown at 36,6% during the year MBFG has 105 mono-brand boutiques situated in emerging markets including: Eastern Europe 24 Russia and Baltic 43 Middle East 22 Asia 16 STAR Conference - Milan - March 5-6,

17 002. Operating & Strategic Highlights 2007 New license agreements AQUASCUTUM Footwear, handbags & accessories GHERARDINI Handbags & accessories AMAZON LIFE Handbags & Accessories BOGNER PHARD Children s wear Children s wear JOHN GALLIANO Jewellery STAR Conference - Milan - March 5-6,

18 002. Operating & Strategic Highlights 2007 International Retail network expansion MBFG inaugurated 46 boutiques in 2007 (16 DOS and 30 franchisees) including: 16 DOS: 2 Rosato, Italy (Milan and Florence) 2 Baldinini, Italy & San Marino 2 Braccialini, France and Italy 2 Valente: Italy (Milan) and Switzerland Renè Lezard, Germany Gioielli d Italia, Switzerland Francesco Biasia, Italy (Milan) Coccinelle, Italy (Rome) 30 Franchisees: 3 Braccialini, Russia (Moscow), Dubai 11 Baldinini: China, Dubai, Russia, East Europe 9 Biasia: Middle East, Poland, China, Indonesia, Russia, Italy 4 Coccinelle, Russia, East Europe, Middle East 2 Mariella Burani, Bolzano (1Q) and Naples (2Q) Valente, China (Macao) STAR Conference - Milan - March 5-6,

19 003. FINANCIAL HIGHLIGHTS FY 2007 STAR Conference - Milan - March 5-6,

20 003. Financial Highlights FY 2007 In Summary.. INCOME STATEMENT The dynamic growth registered in the past years continues REVENUE MIX Focus on product categories, distribution channels, and geographic markets offering higher margins BALANCE SHEET Debt / equity ratio of 0,63 notwithstanding significant investments made during the year STAR Conference - Milan - March 5-6,

21 003. Financial Highlights FY 2007 Income Statement (IAS/IFRS) The dynamic growth registered in the past years continues FY 2007 MILLION Growth NET REVENUES 672,6 701,3 4,3% production cost (547,5) (593,1) EBITDA 125,1 108,2-13,5% % of net revenues 18,6% 15,4% Deprec. Ammort & write-offs (32,5) (30,0) EBIT 92,6 78,2-15,6% % of net revenues 13,8% 11,2% net financial items (23,9) (27,8) PRETAX 68,7 50,4-26,6% % of net revenues 10,2% 7,2% NET INCOME 63,3 46,0-27,3% % of net revenues 9,4% 6,6% (1) Income statements prepared in accordance with IAS/IFRS and include the impact of extraordinary income and expense items in revenues as well as profits. STAR Conference - Milan - March 5-6,

22 003. Financial Highlights FY 2007 Reclassified Income Statement (1) The dynamic growth registered in the past years continues FY 2007 MILLION Growth NET REVENUES 585,7 654,4 11,7% production cost (506,1) (561,1) EBITDA 79,6 93,3 17,2% % of net revenues 13,6% 14,3% ammortization & depreciation (17,6) (20,0) EBIT 62,0 73,3 18,2% % of net revenues 10,6% 11,2% net financial items (23,9) (27,8) (1) The reclassified Income Statement is provided for informational purposes only and has not been audited. The reclassified income statement reflects extraordinary income and expense items below EBIT as a means of more easily comparing operating results from year to year. PRETAX PRIOR TO EXTRAORD. 38,1 45,5 19,4% % of net revenues 6,5% 7,0% net extraordinary income 30,7 5,0 PRETAX 68,8 50,5 % of net revenues 11,7% 7,7% NET INCOME 63,3 46,0 % of net revenues 10,8% 7,0% STAR Conference - Milan - March 5-6,

23 003. Financial Highlights FY 2007 Divisional Revenues & EBITDA (Reclassified) Leather Goods Division is considered the Group s principal growth driver APPAREL LEATHER JEWELLERY DIGITAL (Million Euros) FY 2006 FY 2007 (Million Euros) FY 2006 FY 2007 (Million Euros) FY 2006 FY 2007 (Million Euros) FY 2006 FY 2007 REVENUES (1) 297,6 253,9 REVENUES (1) 249,6 296,3 REVENUES 4,3 55,3 REVENUES 34,2 48,9 % total growth -14,7% % total growth 18,7% % total growth 1191,0% % total growth 43,2% % organic growth 19,1% % organic growth 15,9% (*) % pro forma organic growth 24,8% % organic growth 16,9% EBITDA 36,3 34,8 EBITDA 40,0 47,4 EBITDA 0,8 7,1 EBITDA 2,5 3,9 % EBITDA growth -4,1% % EBITDA growth 18,5% % EBITDA growth 787,5% % EBITDA growth 56,0% Ebitda margin 12,2% 13,7% Ebitda margin 16,0% 16,0% Ebitda margin 18,6% 12,8% Ebitda margin 7,3% 8,0% (1) Including royalties (1) Including royalties (*) The 2006 pro forma financial data has not been audited For the fiscal year ended December 31, 2007, the Leather Goods and Fashion Jewellery divisions generated 58% of revenues from core operations (net of Digital). However IF WE ADJUST TO REFLECT THE DIVESTITURE OF MULTI-BRAND RETAIL, 62% OF REVENUES of FY 2007 WERE GENERATED FROM THE LEATHER GOODS AND FASHION JEWELLERY DIVISIONS STAR Conference - Milan - March 5-6,

24 003. Financial Highlights FY 2007 Revenue Mix Focus on product categories, distribution channels, and geographic markets offering higher margins MILLION 2006 % of revenues 2007 % of revenues % GROWTH Apparel 297,6 50,8% 253,9 38,8% -14,7% Leather goods 249,6 42,6% 296,3 45,3% 18,7% Fashion Jewellery 4,3 0,7% 55,3 8,5% 1191,5% Digital fashion 34,2 5,8% 48,9 7,5% 43,0% SUB-TOTAL 585,7 100,0% 654,4 100,0% 11,7% extraordinary 87,0 46,9 TOTAL 672,6 701,3 4,3% Own brands 492,1 90,0% 534,5 89,0% 8,6% Direct clients (1) 387,8 70,9% 400,3 66,6% 3,2% Foreign markets 349,1 63,9% 373,0 62,1% 6,9% (1) Direct clients: DOS, franchisees and wholesale customers acquiring directly from the Group's showrooms STAR Conference - Milan - March 5-6,

25 003. Financial Highlights FY 2007 Balance Sheet Debt/Equity ratio of 0,63 at December 31, 2007 (vs. 0,61 at December 31, 2006) notwithstanding significant investments made during the year IAS/IFRS MILLION Net financial position (NFP) 169,2 179,6 177,5 Shareholders' Equity 243,3 296,7 280,5 TOTAL INVESTED CAPITAL 412,5 476,3 458,0 INDICES: NFP / Equity 0,70 0,61 0,63 NFP / Total invested capital 0,41 0,38 0,39 STAR Conference - Milan - March 5-6,

26 004. STRATEGIC DIRECTION & OUTLOOK STAR Conference - Milan - March 5-6,

27 004. Strategic Direction & Outlook Strategic Direction & Outlook Further development of the group s brands, each to become a leader in its respective market Further OPTIMIZE THE SALES MIX with focus on: Fashion Jewellery Leather Goods Emerging Luxury markets Strengthen the APPAREL DIVISION Increase BRAND AWARENESS Retail network expansion Increased A&P spend Increased focus on LICENSES Continued INTEGRATION of companies acquired Further BRAND EXTENSION STAR Conference - Milan - March 5-6,

28 APPENDICES a. Historical financial performance b. Revenue breakdowns FY 2007 c. Leather Goods (Antichi Pellettieri) d. Fashion Jewellery (Gioielli d Italia) STAR Conference - Milan - March 5-6,

29 Appendix A Historical Financial Performance Income Statement ITALIAN GAAP CAGR IAS/IFRS CAGR MILLIONS OF EURO NET REVENUES 157,0 221,7 273,9 358,8 428,9 28,6% 429,6 483,1 672,6 701,3 23,8% % Total Growth 45,9% 41,2% 23,5% 31,0% 19,6% 19,7% 12,5% 39,2% 4,3% EBITDA 12,6 22,8 32,4 43,1 53,3 43,4% 45,2 61,4 125,1 108,2 35,9% % Total Growth 320,4% 81,0% 42,1% 34,1% 22,6% 4,8% 35,9% 103,7% -13,5% Ebitda margin 8,0% 10,3% 11,8% 12,1% 12,4% 10,5% 12,7% 18,6% 15,4% EBIT 5,5 11,5 19,9 25,8 32,6 56,1% 29,0 42,7 92,6 78,2 46,2% % Total Growth na 109,6% 73,0% 30,0% 26,3% 12,5% 47,0% 117,1% -15,6% Ebit margin 3,5% 5,2% 7,3% 7,2% 7,6% 6,8% 8,8% 13,8% 11,2% PRETAX 6,5 10,4 16,4 29,6 17,7 28,4% 16,2 27,9 68,8 50,4 33,9% % Total Growth na 60,4% 57,7% 81,2% -40,2% -45,3% 72,1% 146,6% -26,7% Pretax margin 4,1% 4,7% 6,0% 8,3% 4,1% 3,8% 5,8% 10,2% 7,2% NET INCOME 3,3 5,8 11,3 21,7 12,1 38,5% 7,8 22,3 63,3 46,0 45,7% % Total Growth na 74,8% 94,8% 92,2% -44,1% -64,1% 186,3% 183,4% -27,3% % of revenues 2,1% 2,6% 4,1% 6,1% 2,8% 1,8% 4,6% 9,4% 6,6% STAR Conference - Milan - March 5-6,

30 Appendix A Historical Financial Performance The Revenue Mix %OF REVENUES GENERATED FROM: Apparel 94,0% 66,4% 67,5% 63,9% 66,7% 63,7% 50,8% 38,9% Leather Goods 0,0% 29,5% 27,1% 31,9% 29,0% 31,0% 42,6% 45,3% Fashion Jewellery 0,7% 8,5% Digital Fashion 6,0% 4,1% 5,4% 4,2% 4,4% 5,4% 5,8% 7,4% TOTAL 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% Own brands 70,0% 75,1% 85,3% 90,7% 90,2% 91,4% 90,0% 89,9% Direct Clients (1) 30,7% 40,2% 58,1% 65,6% 71,8% 72,1% 70,9% 66,6% Foreign markets 49,0% (2) 56,4% 59,2% 61,7% 68,0% 69,9% 63,9% 62,1% (1) Direct Clients: DOS, franchisees and wholesale customers acquiring directly from the Group's showrooms STAR Conference - Milan - March 5-6,

31 Appendix A Historical Financial Performance Balance Sheet IAS/IFRS MILLIONS OF EURO Net working capital 93,1 88,7 113,0 134,0 139,1 105,2 117,8 158,7 Net fixed assets 44,8 81,1 105,9 133,2 179,6 309,9 369,9 391,9 Provisions (7,8) (11,2) (14,5) (20,3) (22,1) (19,7) (18,6) -21,1 Defered taxes (45,7) (56,6) -53,2 TOTAL INVESTED CAPITAL 130,1 158,6 204,3 246,9 296,6 349,9 412,5 476,3 458,0 Net financial position (NFP) 45,2 61,7 93,8 113,8 141,9 142,0 169,2 179,6 177,5 Shareholders' equity 84,9 96,9 110,5 133,2 154,7 207,9 243,3 296,7 280,5 TOTAL INVESTED CAPITAL 130,1 158,6 204,3 246,9 296,6 349,9 412,5 476,3 458,0 INDICES: Net working capital / revenues 59,3% 40,0% 41,3% 37,4% 32,4% 24,6% 24,4% 27,1% NFP / Equity 0,53 0,64 0,85 0,85 0,92 0,70 0,70 0,61 0,63 NFP / Total invested capital 0,35 0,39 0,46 0,46 0,48 0,41 0,41 0,38 0,39 STAR Conference - Milan - March 5-6,

32 Appendix B Revenue breakdowns FY 2007 Revenues by brand category % of % of % MILLION FY 2006 subtotal FY 2007 subtotal Growth Own Brands 492,1 90,0% 534,5 89,0% 8,6% Licensed Brands 54,5 10,0% 66,3 11,0% 21,7% SUB TOTAL 546,6 100,0% 600,8 100,0% 9,9% Royalties 4,8 4,7 Digital Fashion 34,2 48,9 Extraordinary 87,0 47,0 TOTAL REVENUES 672,6 701,3 4,3% STAR Conference - Milan - March 5-6,

33 Appendix B Revenue breakdowns FY 2007 Revenues by distribution channel DISTRIBUTION NETWORK AS OF MILLION FY 2006 FY 2007 % of % of Subtot. Subtot. % Growth DOS (1) 179,1 32,8% 114,0 19,0% -36,3% Franchising (1) 36,5 6,7% 53,4 8,9% 46,4% Direct clients (2) 172,3 31,5% 232,8 38,8% 35,1% DIRECT DITRIBUTION CHANNELS 387,9 71,0% 400,3 66,6% 3,2% Importers/distributors 17,1 3,1% 26,1 4,3% 52,4% Indirect wholesale 141,7 25,9% 174,4 29,0% 23,1% SUBTOTAL (3) 546,7 100,0% 600,8 100,0% 9,9% Royalties 4,8 4,7 Digital fashion 34,2 48,9 SUBTOTAL - OPERATING REVENUES 585,7 654,3 11,7% Extraordinary 87,0 47,0 TOTAL REVENUES 672,7 701,3 4,3% (1) Average boutique size - Apparel: m ; Leather: m (2) Direct clients: wholesale customers acquiring directly from the Group's showrooms (3) Apparel (excluding royalties), Leather & Fashion Jewellery STAR Conference - Milan - March 5-6,

34 Appendix B Revenue breakdowns FY 2007 Revenues by geographic area FY 2006 % of subtotal FY 2007 % of subtotal % GROWTH Italy 197,6 36,1% 227,8 37,9% 15,3% Foreign Market 349,1 63,9% 373,0 62,1% 6,8% German speaking 153,4 28,1% 113,6 18,9% -26,0% E. Europe & Russia 82,3 15,1% 117,4 19,5% 42,7% Rest of Europe 47,8 8,7% 61,3 10,2% 28,3% Far East 37,2 6,8% 40,4 6,7% 8,6% Rest of world 13,8 2,5% 24,3 4,0% 75,8% North America 14,5 2,7% 16,0 2,7% 10,2% SUB TOTAL 546,6 100,0% 600,8 100,0% 9,9% Royalties 4,8 4,6 Digital Fashion 34,2 48,9 SUB TOTAL - OPERATING REVENUES 585,6 654,3 11,7% Extraordinary 87,0 47,0 TOTAL REVENUES 672,6 701,3 4,3% STAR Conference - Milan - March 5-6,

35 Appendix C Leather Goods (Antichi Pellettieri) Leather Goods: Who Are We Unique in the market European leader in the accessible segment of the handbags & accessories market Group structure comprised of complementary companies, each managed by its respective Founders/Entrepreneurs Flexible business model Diversified brand portfolio of renowned own and licensed brands An international retail network that includes 176 boutiques at (48 DOS franchisees) situated in the most prestigious shopping areas world-wide International presence with over 60% of revenues generated from export markets, including over 40% from emerging luxury markets STAR Conference - Milan - March 5-6,

36 Appendix C Leather Goods (Antichi Pellettieri) Leather Goods: Structure Comprised of complementary companies, each managed by its respective Founders / Entrepreneurs 88% Antichi Pellettieri SpA 60% Leather Apparel Srl Baldinini Srl Founders/Entrepreneurs of AP subsidiaries remain in key management roles with equity interests in their respective companies and in Antichi Pellettieri 31% 49% Enrico Mandelli SpA 80% 80% Braccialini Srl 100% Dadorosa Srl AP has call options outstanding on the outstanding minority interests of Biasia, Braccialini, and Coccinelle GFM Industria SpA 86% Francesco Biasia SpA 51% Coccinelle SpA 100% Coccinelle Store Srl 100% 100% Coccinelle Store GMBH Coccinelle Store France SA STAR Conference - Milan - March 5-6,

37 Appendix C Leather Goods (Antichi Pellettieri) Leather Goods: The Market Differentiation of AP brands within the market Luxury pricing HERMES LV FERRAGAMO TOD S SEBASTIAN GUCCI PRADA BALDININI VICINI DIOR CHLOÈ CASADEI COACH BRACCIALINI FURLA LONGCHAMP COCCINELLE BIASIA Entry pricing PRICE STYLE Classical / elegant LOCAL PLAYERS GUESS High fashion content STAR Conference - Milan - March 5-6,

38 Appendix C Leather Goods (Antichi Pellettieri) Leather Goods: Market Positioning Market dynamics driving demand for accessible luxury Continous Trading-up Increased spending power in emerging economies every day luxury bag LUXURY ACCESSIBLE LUXURY ENTRY LEVEL STAR Conference - Milan - March 5-6,

39 Appendix C Leather Goods (Antichi Pellettieri) Leather Goods: Strategic Direction Further development of the brands, each to become a leader in its respective market Further optimize the sales mix with focus on: Handbags and accessories Rapidly expanding geographic markets Increase brand awareness Continued retail network expansion Increased A&P spend Increased focus on licenses Further brand extension Continued integration of companies acquired STAR Conference - Milan - March 5-6,

40 Appendix D Fashion Jewellery (Gioielli d Italia) Fashion Jewellery: Mission & Strategy Establishment of the Fashion Jewellery division to complement MBFG s existing Fashion and Leather Goods operations MISSION To extend MBFG s leadership position in the European accesible luxury goods market into Fashion Jewellery OPPORTUNITY Extremely fragmented market 80% unbranded Shift towards Fashion Jewellery Old fashioned distribution STRATEGY Drive growth of the individual companies by leveraging revenue and cost synergies offered within MBFG STAR Conference - Milan - March 5-6,

41 Appendix D Fashion Jewellery Fashion Jewellery: Structure Diversified yet complementary companies operating in the Fashion Jewellery sector 4-5 Companies with distinctive. Leadership / entrepreneurs Design and product innovation Brand identity and positioning Geographic market penetration Product Expertise (chains, stones, gold, silver, etc.) And common.. Sourcing (raw material) Production platform (mainly outsourced) Logistics Distribution (partners, multi-brand retail) Administration (ad spend, finance, information systems, ) STAR Conference - Milan - March 5-6,

42 Appendix D Fashion Jewellery Fashion Jewellery: The Market Jewellery brands with strong fashion appeal Source: Pambianco Strategie di impresa / MBFG Luxury CARTIER CHOPARD BULGARI Premium TIFFANY RECARLO P.BRUNI POMELLATO DAMIANI VALENTE CIRIVELLI DAVITE&DELUCCHI CHIMENTO GIORGIO VISCONTI BICEGO CALGARO SALVINI ROSATO Medium DONNAORO ALFIERI & St. JOHN REBECCA DODO BLISS MILUNA FACCO COMETE Low PRICE MORELLATO NOMINATION BREIL KIARA BROS WAY STYLE Classic Modern Fashion STAR Conference - Milan - March 5-6,

43 Appendix D Fashion Jewellery Fashion Jewellery: Market Positioning Italian design and targeted communication campaigns are key success factors in the premium segment of the market HIGH-END PREMIUM Design Made in Italy Precious metals / stones Selective distribution Design Designed in Italy Not restricted to precious metals Wider distribution Focus on communications (A&P) STAR Conference - Milan - March 5-6,

44 Appendix D Fashion Jewellery Development of the Fashion Jewellery division within MBFG Brand Equity Brand building projects for Rosato, Valente and Calgaro Objective: clearly define respective brand values, existing brand awareness, and steps for brand development (communication, distribution, etc.) Management reinforcement Gdl: Michele Sofisti, Marketing and Business Development ( Swatch, LVMH, Ferrari,..) for accelerated growth in emerging markets. Reinforced management in Facco, Calgaro and Rosato International expansion Monthly meetings between MBFG / AP management and Fashion Jewellery companies to develop synergies amongst companies within Gdl and within MBFG Contract negotiations between Bosco dei Ciliegi and Valente / Rosato Discussions in progress with Itochu Development of retail network Valente: 1 DOS (Lugano), 1 franchisee (Macao), Rosato: 1 DOS (Milan) 1 GdI multi-brand (Lugano) STAR Conference - Milan - March 5-6,

45 MBFG Disclaimer This document has been prepared by Mariella Burani Fashion Group S.p.A. ( Mariella Burani or the Group ) and comprises written material concerning the Group. The information contained in this document has been provided for informational purposes and does not purport to be comprehensive. Neither the Company nor any of its directors, officers, employees or any other person accepts any responsibility for, or makes any representation or warranty, express or implied, as to the accuracy or completeness of the information in this presentation. This document has been prepared in Italy. The distribution of this document in other jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This document does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Certain of such information and/or opinions may have not been independently verified. By attending the presentation you agree to be bound by the foregoing limitations STAR Conference - Milan - March 5-6,