Q1 2024 Results Presentation

14 May 2024

Agenda

  1. Highlights
  2. Business Review
  3. Financial Review
  4. DOMS Industries Limited

Appendices:

  1. Details on Revenues and EBITDA
  2. Exchange rates

Q1 2024 Highlights

Q1 2024 RESULTS

FILA consolidated financial statements in Q1 2024 reflect the deconsolidation of DOMS Industries Limited (DOMS), now accounted for as a participation under the equity method

Introduction of SAP EWM module at Dixon USA, leading to temporary and one-off disruption of logistics in March. Underlying solid results, with +5.7% growth YTD to February, and return to growth in April

On a like-for-like basis excluding DOMS, Core Business Sales -11.2% (-7.8%comparable FX) impacted by North America and benefiting from return to stability in Europe. Adjusted IFRS 16 EBITDA -6.2% (-2.3%

ex IFRS 16) with higher margins mainly thanks to favorable margin mix and ongoing efficiency actions

3

Strong improvement in Free Cash Flow to Equity, -€40.6m in Q1 2024 vs -€55.5m in Q1 2023, confirming

FILA's solid cash flow generation capabilities post deconsolidation of DOMS

Net Bank Debt of €303.0m in Q1 2024, reflecting €29.4m extraordinary dividend and customary NWC outflows in Q1, well below €406.5m in Q1 2023 due to DOMS IPO and strong cash flow generation

Market Value of 30.6% stake in DOMS currently stands at c. €370m

OUTLOOK FOR 2024

2024 Guidance with stable Revenues due to one-off impact of EWM module in North America,

confirmed with respect to growth in Adjusted EBITDA thanks to strong margins, and Free Cash Flow to

Equity of €40-50m

Snapshot of Q1 2024 results (excluding DOMS)

Core Business Sales (€m)

Reported: -11.2%

Comparable FX: -7.8%

€178.7m

148,6

131,9

incl. DOMS

Q1 23

Q1 24

Adjusted Group Net Profit (€m)

Adjusted EBITDA (€m)

15.1%

Margin +0.9%

16.0%

incl. IFRS 16: -6.2%

excl. IFRS 16: -2.3%

22.5

3,6

2,6

21.1

€24.3m incl.

IFRS 16

19,0

18,5

effect

DOMS and

excl. IFRS 16

Q1 23

Q1 24

Net Bank Debt (€m)

-€103.5m from DOMS IPO & Cash Flows

5.0x

Not including

€3.0m incl.

6,5

DOMS Net

Profit

DOMS

1,3

406,5

+€73.5m

o/w €29.4m

2024 extr. dividend

229,5303,0

Q1 23

Q1 24

Q1 23

YE 23

Q1 24

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

Consistent Long Term Growth (excluding DOMS)

Core Business Sales (€m)

+1.5% CAGR

656 645

608 569 600

-11.2%

149 132

FY 19 FY 20 FY 21 FY 22 FY 23

Q1 23 Q1 24

Adjusted EBITDA (€m)

+2.2% CAGR

w/IFRS 16

119

109

110

101

104

14

14

14

IFRS 16 effect

12

12

-6.2%

89

92

105

95

96

21

23

4

3

19

19

FY 19 FY 20 FY 21 FY 22 FY 23

Q1 23 Q1 24

Free Cash Flow to Equity (€m)

€250m

Cumulative Free

Total dividends

Cash Flow to

paid of €57.4m

Equity

72

60

58

+€15m

30

30

-56-41

FY 19 FY 20 FY 21 FY 22 FY 23

Q1 23 Q1 24

Note: incl. DOMS from FY 2019 to Q1 2023

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

Agenda

  1. Highlights
  2. Business Review
  3. Financial Review
  4. DOMS Industries Limited

Appendices:

  1. Details on Revenues and EBITDA
  2. Exchange rates

Q1 2024 Core Business Sales (excluding DOMS)

FY 2022

FY 2023

Delta (€)

Comparable

Q1 2023

Q1 2024

Delta (€)

Comparable

FX (€)

FX (€)

Total Fila

656,1

644,9

-11.2m

+11.7m

148,6

131,9

-16.7m

-11.6m

Group

-1.7%

+1.8%

-11.2%

-7.8%

Key Highlights

Sales declined -7.8% on a comparable FX basis in Q1 24 vs Q1 23, largely due to North America.

Negative currency impact mainly

North

America

Europe

C&SA

Asia

RoW

325,0

(48%)

235,1

(38%)

77,7

(11%)

14,1

(2%)

4,0

(1%)

321,6

-3.5m

+5.8m

(49%)

-1.1%

+1.8%

214,2

-21m

-18.2m

(35%)

-8.9%

-7.8%

+13.4m

+22.9m

91,2

(13%)

+17.3%

+29.6%

14,4

+0.3m

+1.3m

(2%)

+1.9%

+9.2%

3,5

-0.5m

-0.1m

(1%)

-12.3%

-3.1%

73,2

(48%)

52,1

(38%)

19,3

(11%)

3,0

(2%)

1,0

(1%)

57,1

-16.1m

-15.4m

(48%)

-22.0%

-21.1%

51,6

-0.5m

+0.2m

(38%)

-0.9%

+0.4%

19,3

+0.0m

+3.6m

(11%)

+0.2%

+18.9%

-0.0m

+0.1m

3,0

(2%)

-1.4%

+3.3%

0,8

-0.2m

-0.1m

(1%)

-15.9%

-10.9%

reflecting the devaluation of the Argentine Peso in Q4 23

North America impacted by the programmed roll-out of SAP EWM completed in March, contracting by

-21.1% comparable FX

Prior to EWM roll-out,Sales YTD to February were +5.7% vs prior year, with a return to normality confirmed from April

Europe stable at +0.4% comparable

FX benefiting from expected restocking trends

C&SA grew +18.9% on a

comparable FX basis, with continuing strong growth in Mexico

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

Q1 2024 Adjusted EBITDA (excluding DOMS)

FY 2022

FY 2023

delta

2022

2023

Q1 2023

Q1 2024

delta

2023

2024

Margin

Margin

Margin

Margin

Key Highlights

Total Fila Group

North

America

Europe

C&SA

Asia

RoW

108,9

110,2

+1.3%

16.6%

17.1%

45,7

59,3

+29.8%

14.1%

18.4%

43,6

30,9

-29.1%

18.6%

14.5%

14,5

14,8

+2.6%

18.6%

16.3%

5,0

5,0

+1.8%

35.0%

35.0%

0,2

0,2

n.m.

3.7%

4.5%

22,5

21,1

€19.0 ex.

€18.5 ex.

IFRS16

IFRS16

10,5

9,2

7,37,4

3,73,4

1,01,1

0,00,0

-6.2% 15.1% 16.0%

-12.4% 14.3% 16.1%

+2.2% 13.9% 14.4%

-9.1% 19.3% 17.5%

+11.6% 33.7% 38.2%

n.m.

-1.2%

1.8%

Adjusted IFRS 16 EBITDA contracted by -6.2%, although yielded an improvement of the margin to 16.0% from 15.1%

Figures ex-IFRS 16 are provided in

the Appendices

On a comparable FX basis, in line with Core Business Sales, Adjusted

IFRS EBITDA declined only -1.4%

North America EBITDA margin improved to 16.1% from 14.3% mainly thanks to ongoing efficiency actions and favorable margin mix

Europe EBITDA increased by 2.2%,

mainly thanks to higher product

margins, and despite adverse FX in Turkey and Russian operations (-€0.2m)

CS&A EBITDA contracted -9.1%, despite a double-digit growth in

Mexico, due to Argentina and losses

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

in the Dominican Republic (-€0.4m)

Agenda

  1. Highlights
  2. Business Review
  3. Financial Review
  4. DOMS Industries Limited

Appendices:

  1. Details on Revenues and EBITDA
  2. Exchange rates

Adjusted IFRS 16 Income Statement

(€ million)

Core Business Sales

Other revenues

Total Revenues

Cost for Raw Materials and Supplies and net increase (decrease) in Inventory

Costs for Services and Use of Third-Party Assets

Personnel Costs

Other Operating Costs

Net IC Revenue/Cost DOMS on EBITDA

Adjusted EBITDA

Depreciation & Amortization

Write-Downs

EBIT

Q1 2023

Q1 2023

Q1 2024

Change

w/DOMS

o/w DOMS

ex-DOMS

178.7

30.1

131.9

-46.8

2.5

0.1

1.9

-0.6

181.2

30.2

133.8

-47.4

-82.2

-20.5

-53.0

29.2

-29.6

-3.1

-25.5

4.1

-38.7

-4.2

-32.9

5.8

-2.5

0.0

-1.3

1.1

-

3.3

-

-

28.3

5.7

21.1

-7.2

-10.5

-1.5

-8.4

2.0

-0.4

0.0

0.3

0.7

17.4

4.2

13.0

-4.4

Key Highlights

Adjusted Group Net Profit surges 5.0x to €6.5m in Q1 24 from €1.3m in Q1 23

(excluding DOMS)

PPA Amortization of €2.9m in Q1 23 and €2.6m in Q1 24

Significant decline in Financial

Expenses due to lower indebtedness, improved margin ratchets, and

repayment of Mexican Peso denominated facilities

Financial income/expenses

-10.4

-0.3

-3.9

6.5

Income/expenses from associates at equity

0.3

0.3

0.0

-0.3

method

PBT

7.2

4.2

9.1

1.9

Taxes

-2.6

1.0

-2.4

0.2

Adjusted Net Profit (Loss)

4.6

3.2

6.7

2.1

Adjusted Group Net Profit (Loss)

3.0

1.6

6.5

3.5

Adjustments for Non-Recurring Items to EBITDA

-2.0

0.0

-0.7

1.3

Adjustments for Non-Recurring Items to Net Profit

-1.7

0.0

-0.3

1.4

Income from associates relates to

DOMS, not yet made public for Q1 24 and kept at zero

Adjustments for Non-Recurring Items decline significantly in 2024, and are largely related to reorganization costs in North America and performance shares incentive plan

10

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Disclaimer

FILA - Fabbrica Italiana Lapis e Affini S.p.A. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 12:58:01 UTC.