Profile Paciotti Group

Rainbow

10-04-2014

Finpace

99% 100%

1% Paciotti Spa Cespa srl

Group structure

Milano via S.Andrea Store

Roma Via Frattina Store

Marchio Paciotti

Factory

Wholesale distr. Bologna Store

Bari Store

Finpace

99% 100%

1% Paciotti Spa Cespa srl

Deal perimeter

Milano via S.Andrea Store

Roma Via Frattina Store

Marchio Paciotti

Factory

Wholesale distr. Bologna Store

Bari Store

Deal perimeter

Finpace

99% 100%

1% Paciotti Spa Cespa srl

Financial restructuring

Milano via S.Andrea Store

Roma Via Frattina Store

Marchio Paciotti

Factory

Wholesale distr.

Financial restructuring

(started 1.1.2014)

Bologna Store

Bari Store

Paciotti group consolidated view (Cespa + Paciotti spa)

P&L consolidated 2010(A) 2011(A) 2012(A) 2013(E)

Revenues Wholesale 34.674.855 33.979.468 31.339.000 26.740.000

Sales to Group Retail @wholesale 4.510.000 5.115.000 4.598.000 5.510.027

Direct revenues 39.184.855 39.094.468 35.937.000 32.250.027

Franchising 7.300.000 7.900.000 8.250.000 8.634.000

Direct Revenues and franchising 46.484.855 46.994.468 44.187.000 40.884.027

Own Retail - sell out consolidation 3.690.000 4.185.000 3.762.000 2.732.973

Direct Sales - Outlet ,stock, online 4.771.024 4.814.983 3.906.902 3.408.944

Royalties 3.870.686 3.254.549 2.966.369 2.070.000

Total Revenues 58.816.565 59.249.000 54.822.271 49.095.944

yoygrowth% 1% -7% -10%

Paciotti group consolidated view (Cespa + Paciotti spa)

P&L consolidated 2010(A) 2011(A) 2012(A) 2013(E)

Total Revenues 58.816.565 59.249.000 54.822.271 49.095.944

yoygrowth% 1% -7% -10%

Gross Profit 23.194.029 23.344.897 20.760.701 19.421.891

GP % 39% 39% 38% 40%

Line Margin 14.738.129 13.479.397 11.021.012 8.641.558

%Revenues 25% 23% 20% 18%

EBITDA 2.974.772 2.192.000 284.000 1.377.442-

Cespa Profit & Loss

Cespa 2012 2013

Revenues (from stores) 3.706.325 3.619.880

Royalties 725.125 996.978

of which intercompany 432.000

of which Cesare P 564.978

Net Revenues 4.431.450 4.616.858

yoygrowth% 4%

COGS 2.247.801- 2.040.603-

Gross margin 2.183.649 2.576.255

%of revenues 49% 56%

Personnel 794.558- 810.157-

Sales Costs 285.133- 159.793-

Provv

Rents 1.034.229- 1.019.493-

Other costs 29.241- 213.213-

Ebitda 40.488 373.599

%su Ricavi Netti

Depr & Amort. 368.399- 294.433-

EBIT 327.911- 79.167

Financial charges -4.677 -8.499

Extraordinary costs 357.333 -199.632

Imposte -15.319 0

Risultato Netto 9.425 128.965-

Cespa Balance Sheet 31/12/12 31/12/13

ASSETS

Cash & cash equivalents 85.824 143.615

85.824 143.615

Receivables - vs clients 970.615 700.243

Other receivables 863.222 469.458

0 0

= Total 1.833.837 1.169.700

Accrued Expenses 1.332 6.360

Net Inventory value 3.473.196 1.275.000

Total Working Capital 5.394.188 2.594.675

Fixed Assets 1.299.226 1.306.005

- depreciation fund (1.126.672) (1.181.397)

Intangible Assets 806.433 713.793

Financial Assets 243.018 243.018

Total Fixed Assets 1.222.006 1.081.418

Total Net Assets 6.616.194 3.676.093

31/12/12 31/12/13

Total Liabilities 6.616.194 3.676.093

Short term LIABILITIES

Banks 20.136 22.959

Other short term 0 0

= Totale 20.136 22.959

Payables - suppliers 4.397.416 1.323.757

Payables - others 257.052 475.039

Deferred tax liability 28.359 30.618

Accrued Liabilities 7.349 5.433

Other funds 0 0

= Total 4.690.175 1.834.847

Short Term Liabilities 4.710.311 1.857.806

Mortgage & long term loans 0 0

- due within 1 year (0) (0)

= Totale 0 0

Employee severance fund 159.605 200.974

Other Long term liabilities 0 0

159.605 200.974

Total LIABILITIES 159.605 200.974

Equity 1.736.854 1.746.278

- of which third parties 0 0

- of which group 1.736.854 1.746.278

Net Income 9.425 (128.965)

-of which Dividends 0 0

Total Equities 1.746.278 1.617.313

Overall retail network (direct and franchising)

Napoli Bari

Bologna

Milano

Roma

Venezia

Firenze

Sanremo

Caserta

Capri

Civitanova

New York Los Angeles

London

Bal Harbour

Paris

Istanbul

Dubai (3)

Abu Dhabi

Doha

Sofia (3)

Bucharest Belgrado

Moscow

Macau Nanjing Podgorica

Seoul Busan

Guangzhou

Bordeaux

Mendrisio

RETAIL DIretto

FRANCHISEE

131 (di cui 2 outlet)

26

# PdV

39

Italia

USA

Asia

Est Europa + Russia

Europa Occid.

14

3

11

7

4

39