Salvatore Ferragamo Group

Interim Report as at 31 March 2020

Salvatore Ferragamo S.p.A.

Florence

Interim report as at 31 March 2020

Salvatore Ferragamo Group

CONTENTS

General information ............................................................................................................................

3

Corporate boards ................................................................................................................................

4

Group structure ...................................................................................................................................

5

Group description................................................................................................................................

6

Interim Directors' report on operations..............................................................................................

7

Main Stock Market indicators - Salvatore Ferragamo S.p.A..............................................................

7

Income and financial highlights for the first three months of 2020.....................................................

8

Introduction .........................................................................................................................................

9

The Salvatore Ferragamo Group's Activities.......................................................................................

9

Operating performance......................................................................................................................

10

Significant events occurred during the first three months of 2020 ....................................................

16

Other information ..............................................................................................................................

18

Basis of presentation..........................................................................................................................

19

Significant events occurred after 31 March 2020..............................................................................

20

Outlook..............................................................................................................................................

21

Financial Statements .........................................................................................................................

22

Consolidated Statement of Financial Position - Assets ....................................................................

22

Consolidated Statement of Financial Position - Liabilities and Shareholders' Equity ....................

23

Consolidated Income Statement ........................................................................................................

24

Consolidated Statement of Comprehensive Income...........................................................................

25

Consolidated Statement of Cash Flows .............................................................................................

26

Statement of changes in consolidated shareholders' equity ..............................................................

27

Statement pursuant to paragraph 2, article 154 bis of Leg. Decree no. 58/98 (Consolidated Law on

Finance).............................................................................................................................................

28

This document has been translated into English solely for the convenience of international readers.

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

General information

Registered office of the Parent company

Salvatore Ferragamo S.p.A.

Via Tornabuoni, 2

50123 Florence

Legal information about the Parent company

Authorized share capital 16,939,000 Euro Subscribed and paid-up share capital 16,879,000 Euro

Tax code and Florence Company Register no.: 02175200480

Registered with the Florence Chamber of Commerce under REA (Economic and Administrative Register) no. 464724

Corporate website www.ferragamo.com

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Corporate boards

Board of Directors (1)

Ferruccio Ferragamo (7)

Chairman

Micaela le Divelec Lemmi (7)(11)

Managing Director

Giacomo Ferragamo (8)

Deputy Chairman

Giovanna Ferragamo (9)

Leonardo Ferragamo (9)

Diego Paternò Castello di San Giuliano (9)

Angelica Visconti (8)

Francesco Caretti (9)

Peter Woo Kwong Ching (9)

Umberto Tombari (9)(10)

Marzio Alessandro Alberto Saà (9)(10)

Chiara Ambrosetti (9)(10)

Lidia Fiori (9)(10)

Executive Committee (2)

Ferruccio Ferragamo

Chairman

Micaela le Divelec Lemmi

Diego Paternò Castello di San Giuliano

Francesco Caretti

Marzio Alessandro Alberto Saà

Control and Risk Committee

Marzio Alessandro Alberto Saà

Chairman

Umberto Tombari

Chiara Ambrosetti

Lidia Fiori (12)

Nomination and Remuneration

Umberto Tombari

Chairman

Committee

Marzio Alessandro Alberto Saà

Lidia Fiori

Chiara Ambrosetti (12)

Product and Brand Strategy Committee

Ferruccio Ferragamo

Chairman

Micaela le Divelec Lemmi

Giacomo Ferragamo

Diego Paternò Castello di San Giuliano

Angelica Visconti

Board of Statutory Auditors (3)

Andrea Balelli (3)

Chairman

Fulvio Favini (4)

Acting Statutory Auditor

Paola Caramella (3)

Acting Statutory Auditor

Giovanni Crostarosa Guicciardi (3)

Acting Statutory Auditor

Roberto Coccia (3)

Substitute Statutory Auditor

Antonietta Donato (4)

Substitute Statutory Auditor

Antonella Andrei (3)

Substitute Statutory Auditor

Independent Auditors (5)

KPMG S.p.A.

Manager charged with preparing

Company's Financial Reports (6)

Alessandro Corsi

  1. Appointed by the Shareholders' Meeting on 20 April 2018 and serving for the 2018-2020 period
  2. Set up by the Board of Directors on 6 April 2020
  3. Appointed by the Shareholders' Meeting on 8 May 2020 and serving for the 2020-2022 period
  4. Serving until the approval of the separate financial statements as at 31 December 2019
  5. Appointed for the 2020-2028 period. EY S.p.A. serving until the approval of the separate financial statements as at 31 December 2019
  6. Appointed by the Board of Directors on 10 March 2020 effective as from 1 April 2020
  7. Executive director
  8. Executive director pursuant to article 2 of the Corporate Governance Code as a manager of the Company
  9. Non-executivedirector
  10. Independent director pursuant to article 147-ter, paragraph 4 and article 148, paragraph 3 of Italian Legislative Decree no. 58 of 24 February 1998 ("Testo Unico della Finanza" or "T.U.F.", Consolidated Law on Finance) and article 3 of the Corporate Governance Code.
  11. Appointed as Director by the Shareholders' Meeting on 18 April 2019 and appointed as Managing Director by the Board of Directors on the same date. In office until approval of the 31 December 2020 separate financial statements
  12. Appointed by the Board of Directors on 18 June 2019 effective immediately

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Group structure

Salvatore Ferragamo S.p.A.

100%

Ferragamo Parfums S.p.A.

100%

Ferragamo Austria GmbH

100%

Ferragamo USA Inc.

Ferragamo Japan K.K.

71%

100%

100%

100%

Ferragamo France S.A.S.

S-Fer International Inc.

Ferragamo Korea Ltd.

100%

100%

Ferragamo U.K. Limited

Sator Realty Inc.

Ferragamo

100%

(Singapore) Pte Ltd

100%

100%

Ferragamo

Ferragamo Canada Inc.

Ferragamo

100%

(Suisse) SA

(Thailand) Limited

100%

Ferragamo

99.73%

Ferragamo Mexico

0.27%

Ferragamo

100%

Monte-Carlo S.A.M.

S.de R.L.deC.V.

(Malaysia) Sdn. Bhd.

100%

Ferragamo

99%

Ferragamo Chile S.A.

1%

Ferragamo Moda

75%

Retail Nederland B.V.

(Shanghai) Co.Ltd.

100%

Ferragamo Belgique SA

95%

Ferragamo Argentina S.A.

5%

Ferragamo Retail

100%

India Private Limited*

100%

Ferragamo

99%

Ferragamo Brasil Roupas e

1%

Ferragamo

100%

Deutschland GmbH

Acessorios Ltda.

Australia Pty Ltd.

100%

Ferragamo España S.L.

Ferragamo Retail

75.2%

Macau Limited

100%

Ferragamo Hong Kong Ltd.

75%

Ferrimag Limited

100%

Ferragamo Retail

HK Ltd.

100%

Ferragamo Retail

100%

Taiwan Limited

Ferragamo Fashion

Trading (Shanghai) Co. Ltd.

Notes

European companies

North America companies

Centre and South America companies

Asia Pacific companies

Japanese companies

* Non-operating company

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Group description

As at 31 March 2020, the Salvatore Ferragamo Group consists of Salvatore Ferragamo S.p.A. (Parent company) and the following subsidiaries - consolidated on a line by line basis - in which the Parent company holds majority stakes, both directly or indirectly, and which it controls.

Salvatore Ferragamo S.p.A.

Europe

Ferragamo Retail Nederland B.V.

Ferragamo France S.A.S.

Ferragamo Deutschland GmbH

Ferragamo Austria GmbH

Ferragamo U.K. Limited

Ferragamo (Suisse) SA

Ferragamo Belgique SA

Ferragamo Monte-Carlo S.A.M.

Ferragamo Espana S.L.

Ferragamo Parfums S.p.A.

North America

Ferragamo USA Inc.

Ferragamo Canada Inc.

S-Fer International Inc.

Sator Realty Inc.

Central and South America

Ferragamo Mexico S. de R.L. de C.V.

Ferragamo Chile S.A.

Ferragamo Argentina S.A.

Ferragamo Brasil Roupas e Acessorios Ltda.

Asia Pacific

Ferragamo Hong Kong Ltd.

Ferragamo Australia Pty Ltd.

Ferrimag Limited

Ferragamo Fashion Trading (Shanghai) Co. Ltd.

Ferragamo Moda (Shanghai) Co. Ltd.

Ferragamo Retail HK Limited

Ferragamo Retail Taiwan Limited

Ferragamo Retail Macau Limited

Ferragamo Retail India Private Limited

Ferragamo Korea Ltd.

Ferragamo (Singapore) Pte Ltd.

Ferragamo (Thailand) Limited

Ferragamo (Malaysia) Sdn. Bhd.

Japan

Ferragamo Japan K.K.

Parent company, owner of the Ferragamo and Salvatore Ferragamo brands, as well as of numerous other figurative and shape-based trademarks; it undertakes production activities and manages the retail distribution channel in Italy as well as the wholesale channel in Italy and abroad, and acts as a holding company.

It manages directly operated stores (DOS) in Holland It manages directly operated stores (DOS) in France It manages directly operated stores (DOS) in Germany It manages directly operated stores (DOS) in Austria

It manages directly operated stores (DOS) in the United Kingdom It manages directly operated stores (DOS) in Switzerland

It manages directly operated stores (DOS) in Belgium

It manages directly operated stores (DOS) in the Principality of Monaco

It manages directly operated stores (DOS) in Spain

Licensee of the Ferragamo and Ungaro brands for the production and distribution of the fragrances product category

It distributes and promotes products in the USA and acts as a sub- holding for North America (USA and Canada)

It manages directly operated stores (DOS) and the wholesale channel in Canada

It manages directly operated stores (DOS) in the USA

It manages directly operated stores (DOS) in the USA and real estate assets

It manages directly operated stores (DOS) and the wholesale channel in Mexico

It manages directly operated stores (DOS) in Chile

It manages directly operated stores (DOS) in Argentina It manages directly operated stores (DOS) in Brazil

It distributes and promotes products in Asia and acts as a sub-holding for the Chinese area (Hong Kong, Taiwan, PRC)

It manages directly operated stores (DOS) in Australia

Sub-holding company for the Chinese area (Hong Kong, Taiwan, PRC)

It manages directly operated stores (DOS) and the wholesale channel in the People's Republic of China

It manages directly operated stores (DOS) in the People's Republic of China

It manages directly operated stores (DOS) in Hong Kong It manages directly operated stores (DOS) in Taiwan

It manages directly operated stores (DOS) in Macau Non-operating company

It manages directly operated stores (DOS) and the wholesale channel in South Korea

It manages directly operated stores (DOS) in Singapore It manages directly operated stores (DOS) in Thailand It manages directly operated stores (DOS) in Malaysia

It manages directly operated stores (DOS) in Japan

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Interim Directors' report on operations

Main Stock Market indicators - Salvatore Ferragamo S.p.A.

Official price as at 31 March 2020 in Euro

12.1

Stock Market capitalization as at 31 March 2020 in Euro

2,042,359,000

Number of shares making up the share capital as at 31 March 2020

168,790,000

Number of outstanding shares net of treasury shares (free float)

48,979,090

Here below is the trend in Salvatore Ferragamo's share price during the first three months of 2020.

Alternative performance measures

In order to better assess its performance, the Salvatore Ferragamo Group makes use of some alternative performance measures which are not identified as accounting measures under IFRS. Therefore, the measurement basis applied by the Group may differ from that adopted by other groups, and the balance may not be comparable. These alternative performance measures are derived exclusively from historical financial data and are determined in accordance with the Guidelines on Alternative Performance Measures issued by ESMA/2015/1415 and adopted by CONSOB with communication no. 92543 of 3 December 2015. They refer exclusively to the performance for the reporting period of this Interim report as well as the comparative periods, and not to the Group's expected performance and are not to be considered as substitutes for IFRS measures. The definitions of the alternative performance measures adopted in the Interim report are provided below:

EBITDA: it is Operating Profit before Amortization and Depreciation and Write-downs of tangible/intangible assets and Right-of-use assets.

Operating profit: it is the difference between revenues, cost of goods sold, and operating costs net of other income.

Net working capital: it is Inventories plus Right of return assets and Trade receivables net of Trade payables and Refund Liabilities.

Net invested capital: it is the total amount of Non current assets, Current assets and Assets held for sale, excluding financial assets (Other current financial assets and Cash and cash equivalents) net of Non current liabilities, Current liabilities and Liabilities held for sale, excluding financial liabilities (Current and non current interest-bearing loans & borrowings, Other current and non current financial liabilities, and Current and non current lease liabilities).

Net financial debt/(surplus): it is calculated as Current and non current interest-bearing loans & borrowings plus Current and non current lease liabilities and Other current and non current financial liabilities including the negative fair value of derivatives (non-hedgecomponent), net of Cash and cash equivalents and Other current financial assets, including the positive fair value of derivatives (non-hedgecomponent).

Adjusted net financial debt/ (surplus): it is Net financial debt/(surplus) net of Current and non current lease liabilities.

Adjusted cash flow generated from operating activities: it is Net cash from (used in) operating activities net of Repayment of lease liabilities (classified as Cash flow from financing activities).

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Income and financial highlights for the first three months of 2020

Quarterly period ended 31 March

% change

2020

2019

2020 vs

(In millions of Euro)

2019

Revenues

221.7

317.1

(30.1%)

Gross profit

130.2

200.6

(35.1%)

Gross profit %

58.7%

63.3%

EBITDA

11.6

65.1

(82.2%)

EBITDA %

5.2%

20.5%

Operating profit/(loss)

(36.3)

21.2

na

Operating profit/(loss) %

(16.4%)

6.7%

Net profit/(loss) for the period

(41.4)

11.0

na

Net profit/(loss) - Group

(39.1)

10.2

na

Net profit/(loss) - minority interests

(2.4)

0.9

(In millions of Euro)

31 March 2020

31 December 2019

31 March 2019

Investments in tangible/intangible assets

5.0

59.6

9.7

Net working capital

334.1

334.6

300.9

Shareholders' equity

737.1

785.3

774.5

Adjusted net financial debt/(surplus)

(123.4)

(171.9)

(178.7)

Adjusted cash flow generated from operating activities

(46.5)

135.6

21.9

31 March 2020

31 December 2019

31 March 2019

Staff as at the reporting date

4,125

4,277

4,141

Number of DOS

391

393

398

Number of TPOS

261

261

264

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Disclaimer

This document contains forward-looking statements, in particular in the sections headed "Outlook" and "Significant events occurred after 31 March 2020" relating to future events and the operating, income and financial results of the Salvatore Ferragamo Group. These statements are based on the Group's current expectations and forecasts regarding future events and, by their nature, involve risks and uncertainties, since they refer to events and depend on circumstances which may, or may not, happen or occur in the future. As such, they must not be unduly relied upon. The actual results could differ significantly from those contained in these statements due to a variety of factors, including the volatility and deterioration in the performance of securities and financial markets, changes in raw material prices, changes in macroeconomic conditions and in economic growth, and other changes in business conditions, in the legal and institutional framework (both in Italy and abroad), and many other factors, most of which are beyond the Group's control.

Introduction

In order to promote open and continuous dialog with the financial community and in light of the sector's best practices followed by the main companies included in the FTSE MIB 30 - where Salvatore Ferragamo S.p.A. is listed - the Salvatore Ferragamo Group has decided, as from 14 November 2017, to publish its interim reports on a voluntary basis, although Leg. Decree no. 25 of 15 February 2016 has abolished the obligation to publish them.

This Interim report was not audited nor prepared in accordance with IAS 34 "Interim Financial Reporting", as the Group applies said standard to half-year reports and not also quarterly reports.

The market in which the Salvatore Ferragamo Group operates is characterized by seasonal events that are typical of the retail and wholesale sales and which result in an uneven monthly breakdown in the sales flow and in operating costs. Therefore, it is important to remember that income statement results for the first three months of the year cannot be considered as proportional to the year as a whole. The figures are affected by seasonal events also in terms of equity and financial position as well as in terms of taxation.

The Interim report, in addition to the indicators required for financial statements, in compliance with International Financial Reporting Standards (IFRS), also includes some alternative performance measures used by management to monitor and assess the Group's performance, as detailed in a specific section. This Interim report must be read together with the Annual Report as at 31 December 2019, which provides full details on the issues addressed.

The Salvatore Ferragamo Group's Activities

The Salvatore Ferragamo Group is active in the creation, production and sale of luxury goods for men and women: footwear, leather goods, apparel, silk goods, other accessories, jewels and fragrances. The product range also includes eyewear and watches manufactured under license by third parties. The product range stands out for its uniqueness, which is the result of the combination of creative and innovative style with the quality and craftsmanship that are the hallmark of luxury goods made in Italy. The Salvatore Ferragamo Group carries out product sales mainly through a network of Salvatore Ferragamo monobrand stores, managed both directly (DOS) or by third parties, and, alongside this network, also through a significant and well-established presence in department stores and multibrand specialty stores as well as the e-commerce channel.

As for the fragrances product category, which involves the creation, development and production (completely outsourced) of fragrances and related products under the Salvatore Ferragamo brand and, under license, the Ungaro brand, sales are managed by distributors of the Salvatore Ferragamo Group as well as third party distributors which serve a network of selected multibrand stores belonging to the specific fragrances channel. The Salvatore Ferragamo Group is also active in the licensing of the Salvatore Ferragamo brand and in real estate management.

Effect of exchange rate changes on operations

The Ferragamo Group has a strong presence in international markets, including through commercial companies located in countries with currencies other than the Euro, mainly the US dollar, the Chinese renminbi, the Japanese yen, the South Korean won, and the Mexican peso. Therefore, the Group is exposed to both settlement and translation risk.

Overall, in the first three months of 2020 currency markets saw significant volatility as a direct result of the measures taken by governments and central banks to address the emergency associated with the Covid19 outbreak. Overall, the EUR/USD exchange rate depreciated in the first quarter (1.12 at the end of 2019 compared to 1.10 at 31 March 2020) despite a sudden appreciation in early March, when it spiked to nearly 1.15. China was the first country hit by the emergency but also the first to take extraordinary steps to support the economy, and saw its currency fluctuate during the period: while the USD/CNY exchange rate appreciated slightly but steadily, EUR/CNY began the year at around 7.80 and initially fell down to 7.55 in early February before climbing back up to a high of 7.96 in early March and eventually settle at 7.78 at the end of the quarter. Considering its status as a safe haven, the Japanese yen performed well during the period, shifting from 122 at the start of the year to 118 at the end of March relative to the euro. Emerging market currencies were especially affected by the challenging market conditions and the resulting risk aversion. Specifically, the EUR/KRW pair shifted from approximately 1,300 at the start of the year to 1,350 at the end of the quarter after peaking at around

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

1,380. The EUR/MXN exchange rate suffered also from the record decline in oil prices and appreciated by approximately 30% in the second half of the quarter from around 20 to over 26. Another hard-hit currency was the Brazilian Real, which shifted from 4.4 at the beginning of the year to 5.7 at the end of the quarter.

For an analysis of the main impacts caused by the above exchange rate movements, please refer to the subsequent comments in this Interim Directors' Report.

Operating performance

The results for the first three months of 2020 were significantly influenced by the outbreak of the pandemic caused by the novel coronavirus, known as Covid-19, which began in earnest in January 2020 in China and Asia and subsequently spread to Europe, America, and the rest of the world throughout February and March 2020. This situation has led the Governments of all the countries affected to restrict and suspend business operations, the movement of people, and international traffic (so-called lockdown), . This had an especially negative impact on tourist flows across the globe, causing most of the Group's distribution network to shut down and the remaining part to suffer from significantly diminished traffic. Against this backdrop, the Group saw revenues decline by 30.1% at constant exchange rates (-31.5% at current exchange rates), which caused margins and profits to contract. Gross profit for the first quarter of 2020 amounted to 58.7% as a percentage of revenues, compared to 63.3% in the first quarter of 2019.

The Group reported a 36.3 million Euro operating loss in the first quarter of 2020, compared to a 21.2 million Euro operating profit in the first quarter of 2019.

The net loss for the period amounted to 41.4 million Euro, compared to 11.0 million Euro in net profit in the prior-year period.

The Group's financial situation remains robust and positive: the adjusted net financial position amounted to a positive 123.4 million Euro, down from 178.7 million Euro as at 31 March 2019 and 171.9 million Euro as at 31 December 2019, as the adjusted operating cash flow for the first quarter of 2020 was a negative 46.5 million Euro.

The following table shows the main income statement data.

Quarterly period ended 31 March

(In thousands of Euro)

2020

% of

2019

% of

% change

Revenues

Revenues

Revenues

221,734

100.0%

317,075

100.0%

(30.1%)

Gross profit

130,239

58.7%

200,556

63.3%

(35.1%)

Style, product development and logistics costs

(10,300)

(4.6%)

(12,354)

(3.9%)

(16.6%)

Sales & distribution costs

(106,924)

(48.2%)

(113,421)

(35.8%)

(5.7%)

Marketing & communication costs

(17,227)

(7.8%)

(20,428)

(6.4%)

(15.7%)

General and administrative costs

(31,653)

(14.3%)

(33,294)

(10.5%)

(4.9%)

Other operating costs

(5,666)

(2.6%)

(5,649)

(1.8%)

0.3%

Other income

5,202

2.3%

5,759

1.8%

(9.7%)

Total operating costs (net of other income)

(166,568)

(75.1%)

(179,387)

(56.6%)

(7.1%)

Operating profit/(loss)

(36,329)

(16.4%)

21,169

6.7%

(271.6%)

Net financial income and charges

(11,603)

(5.2%)

(5,861)

(1.8%)

98.0%

of which Net interest expense on lease liabilities

(4,315)

(1.9%)

(4,310)

(1.4%)

0.1%

Profit/(loss) before taxes

(47,932)

(21.6%)

15,308

4.8%

(413.1%)

Income Taxes

6,486

2.9%

(4,262)

(1.3%)

(252.2%)

Net profit/(loss) for the period

(41,446)

(18.7%)

11,046

3.5%

(475.2%)

Net profit/(loss) - Group

(39,076)

(17.6%)

10,163

3.2%

(484.5%)

Net profit/(loss) - minority interests

(2,370)

(1.1%)

883

0.3%

(368.4%)

Amortization, depreciation and write-downs

47,890

21.6%

43,890

13.8%

9.1%

EBITDA

11,561

5.2%

65,059

20.5%

(82.2%)

Revenues in the first three months of 2020 totaled 221,734 thousand Euro, down 30.1% from 317,075 thousand Euro in the first three months of 2019. The three main currencies other than the Euro in which the Group generates most of its revenues, i.e. the US Dollar, the Chinese Renminbi, and the Japanese Yen, performed as follows in the first three months of 2020 compared to the same period last year: the US Dollar appreciated by

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

2.9%(1), the Japanese Yen appreciated by 4.0% (2) and the Chinese Renminbi slightly depreciated by 0.4% (3) against the Euro, the currency in which the amounts in the consolidated financial statements are expressed. Revenues were down 31.5% at constant exchange rates (applying to the revenues - not inclusive of the hedging effect - of the first three months of 2019 the average exchange rate of the first three months of 2020); in particular, they decreased by 26.3% in Europe, 24.7% in North America, 21.3% in Japan, 43.8% in Asia Pacific, and 13.8% in Central and South America. Asia Pacific contributed the most to Group revenues with 31.3%, followed by Europe (26.8%), North America (24.0%), Japan (11.0%), and Central and South America (6.9%).

Gross profit for the period ended 31 March 2020 totaled 130,239 thousand Euro (accounting for 58.7% of revenues), down by 35.1% compared to the prior-year period, when it amounted to 200,556 thousand Euro (accounting for 63.3% of revenues), as a result of shrinking sales across all distribution channels.

Total operating costs (net of other income) amounted to 166,568 thousand Euro for the first three months of 2020. Although they declined by 7.1% year-on-year, they amounted to 75.1% as a proportion of revenues, up from 56.6% in the first three months of 2019, due to the sharp contraction in revenues caused by the restrictions put in place to contain the Covid-19 pandemic. The decrease in operating costs was driven by the fall in costs directly associated with sales and, in part, by the steps that the Group's management is taking to mitigate the negative impact of the crisis triggered by the Covid-19 coronavirus pandemic.

The reduction in revenues and the fact that operating costs did not fall proportionately caused EBITDA to decline by 82.2% from 65,059 thousand Euro to 11,561 thousand Euro. The ratio to revenues amounted to 5.2%, down from 20.5% in the first three months of 2019.

The Group reported a 36,329 thousand Euro operating loss for the period ended 31 March 2020, compared to a 21,169 thousand Euro profit in the period ended 31 March 2019.

Net financial income and charges totaled 11,603 thousand Euro in charges in the first three months of 2020, compared to charges of 5,861 thousand Euro in the first three months of 2019.

(In thousands of Euro)

Quarterly period ended 31 March

2020

2019

% change

Net interest

172

175

(1.7%)

Other net income/(charges)

(323)

(443)

(27.1%)

Net interest expense on lease liabilities

(4,315)

(4,310)

0.1%

Net gains/(losses) on exchange rate differences

(6,300)

4,675

(234.8%)

Net financial income/(charges) for fair value adjustment of derivatives

(837)

(5,958)

(86.0%)

Total

(11,603)

(5,861)

98.0%

Net gains and losses on exchange rate differences mainly reflected the impact of commercial transactions in foreign currency. They shifted from 4,675 thousand Euro in net gains in the first three months of 2019 to 6,300 thousand Euro in net losses in the first three months of 2020 due to the depreciation in certain currencies especially affected by the challenging market conditions. Changes in net gains and losses should be correlated with the item "Net financial income/(charges) for fair value adjustment of derivatives", which refers to the premium or discount on transactions to hedge the exchange rate risk undertaken by the Parent company and the changes in the fair value of non-hedging derivatives. This item shifted from 5,958 thousand Euro in net charges in the first three months of 2019 to 837 thousand Euro in net charges in the first three months of 2020.

1

With reference to the average Euro/USD exchange rate in the first three months of 2020

1.103;

2019:

1.136

2

With reference to the average Euro/Yen exchange rate in the first three months of 2020

120.1;

2019:

125.08

3

With reference to the average Euro/Cny exchange rate in the first three months of 2020

7.696; 2019

7.663

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Interim report as at 31 March 2020

Salvatore Ferragamo Group

Income Taxes

(In thousands of Euro)

Quarterly period ended 31 March

2020

2019

% change

Profit/(loss) before taxes

(47,932)

15,308

(413.1%)

Current and deferred taxes

6,486

(4,262)

(252.2%)

Tax rate

na

27.8%

The 47,932 thousand Euro loss before taxes gave rise to a positive 6,486 thousand Euro in current and deferred taxes, mainly because of the positive impact of deferred tax assets, while the Group's tax rate had been 27.8% in the first quarter of 2019. The Parent Company Salvatore Ferragamo S.p.A. benefited from a reduction in its direct tax expense as a result of the benefit known as "Patent Box" amounting to 0.6 million Euro in the first quarter of 2020, compared to 2.5 million Euro in the prior-year period. This reduction was attributable to the decline in the Parent Company's earnings and to the fact, starting from 2020, the so-called "Patent Box" will no longer apply to trademarks-which represented the main component of such benefit-but rather only to designs and models. For further details on the "Patent Box", please refer to the Annual Report as at 31 December 2019.

In the first three months of 2020, the Salvatore Ferragamo Group posted a 41,446 thousand Euro net loss, compared to 11,046 thousand Euro in net profit in the prior-year period. The Group share of net loss amounted to 39,076 thousand Euro, compared to a 10,163 thousand Euro profit in the prior-year period.

Revenues

The following table shows revenues by geographic area for the periods ended 31 March 2020 and 2019, and the relevant percentage changes:

at constant

(In thousands of Euro)

Quarterly period ended 31 March

exchange

% of

% of

rates

2020

2019

% change

% change

Revenues

Revenues

Europe

59,488

26.8%

80,409

25.4%

(26.0%)

(26.3%)

North America

53,243

24.0%

65,359

20.6%

(18.5%)

(24.7%)

Japan

24,353

11.0%

30,332

9.6%

(19.7%)

(21.3%)

Asia Pacific

69,438

31.3%

122,790

38.7%

(43.4%)

(43.8%)

Central and South America

15,212

6.9%

18,185

5.7%

(16.3%)

(13.8%)

Total

221,734

100.0%

317,075

100.0%

(30.1%)

(31.5%)

In Europe revenues declined by 26.0% at current exchange rates and 26.3% at constant exchange rates, weighed down in both sales channels by the restrictions on business operations and international traffic (so-called lockdown) enacted in most European countries.

In North America revenues fell by 18.5% at current exchange rates and 24.7% at constant exchange rates because of both the restrictions on business operations and international traffic (so-called lockdown) as well as the decline in revenues from rental income investment properties, which were still present in the first quarter of 2019.

Japan saw revenues fall by 19.7% at current exchange rates (-21.3% at constant exchange rates), largely because of the dramatic slowdown in international traffic.

In Asia Pacific revenues were down 43.4% at current exchange rates and 43.8% at constant exchange rates, as this was the first region affected by the Covid-19 pandemic and the ensuing social distancing restrictions. Nevertheless, Asia Pacific contributed once again the most to Group revenues, accounting for 31.3% of the total compared to 38.7% as at 31 March 2019.

The Central and South American market saw revenues fall by 16.3% at current exchange rates (-13.8% at constant exchange rates), rising to 6.9% as a percentage of total revenues compared to 5.7% in the prior-year period. It should be noted that the revenues reported as at 31 March 2020 by Ferragamo Argentina S.A. (operating in a country considered to be a hyperinflationary economy) were adjusted, pursuant to IAS 29 (see note 2 Basis of presentation of the consolidated financial statements as at 31 December 2019) with a positive residual effect of 8 thousand Euro in the first quarter of 2020.

12

Interim report as at 31 March 2020

Salvatore Ferragamo Group

The breakdown of revenues by distribution channel was as follows:

at

(In thousands of Euro)

Quarterly period ended 31 March

constant

exchange

% of

% of

rates

2020

2019

% change

% change

Revenues

Revenues

Retail

142,257

64.1%

199,280

62.8%

(28.6%)

(29.4%)

Wholesale

76,411

34.5%

112,800

35.6%

(32.3%)

(34.8%)

Licenses and services

2,213

1.0%

2,851

0.9%

(22.4%)

(22.4%)

Rental income investment properties

853

0.4%

2,144

0.7%

(60.2%)

(61.4%)

Total

221,734

100.0%

317,075

100.0%

(30.1%)

(31.5%)

Retail sales refer to revenues generated by sales in directly operated stores (DOS) as well as through the direct e- commerce channel.

Wholesale sales are targeted mainly at retailers and, to a lesser extent, distributors. Wholesale customers consist of:

  • franchisees, which ensure the presence in markets that are still not sufficiently large or developed to justify a direct retail presence, for example in some areas of the People's Republic of China;
  • stores opened inside airports (travel retail/duty free);
  • specific operators of the fragrances sector;
  • department stores and luxury specialist retailers, in order to strengthen the presence in countries where

the Salvatore Ferragamo Group has its own network of directly operated stores; the business in the United States is of particular importance.

In the first quarter of 2020, and especially in February and March, retail sales were severely affected by the gradual closure of most of the Group's distribution network and the significant lack of traffic in the remaining part (so-called lockdown), resulting in a decline of 28.6% and 29.4% at current and constant exchange rates, respectively-mainly in Europe (-27.5% at current exchange rates) and Asia Pacific (-39.6% at current exchange rates). In the first three months of 2020, the retail channel accounted for 64.1% of total revenues compared to 62.8% in the prior-year period.

As at 31 March 2020, the number of directly operated stores (DOS) decreased by 2 units compared to the situation as at 31 December 2019 and by 7 units compared to 31 March 2019.

The wholesale channel was down 32.3% at current exchange rates and 34.8% at constant exchange rates, also because of order cancellations: specifically, at current exchange rates Asia Pacific, Europe, and Japan declined by 52.5%, 25.1%, and 36.9%, respectively.

In the first three months of 2020, revenues from licenses and services fell by 22.4% at current and constant exchange rates; this item mainly consists of royalties for the licensing of the Salvatore Ferragamo brand to the Marchon group in the eyewear industry and the Timex group in the watch industry.

Revenues from rental income investment properties refer solely to property located in the United States and leased/sub-leased to third parties; they decreased by 60.2% at current exchange rates (-61.4% at constant exchange rates) compared to the prior-year period following the end of a major lease contract for real estate management in February 2019.

The following table shows revenues by product category for the periods ended 31 March 2020 and 2019, indicating the relevant percentage of total revenues.

at constant

(In thousands of Euro)

Quarterly period ended 31 March

exchange

% of

% of

%

rates

2020

2019

% change

Revenues

Revenues

change

Footwear

91,860

41.4%

132,194

41.7%

(30.5%)

(32.4%)

Leather goods

90,356

40.8%

125,925

39.7%

(28.2%)

(29.4%)

Apparel

12,934

5.8%

17,681

5.6%

(26.8%)

(28.5%)

Accessories

13,565

6.1%

18,861

5.9%

(28.1%)

(29.1%)

Fragrances

9,953

4.5%

17,419

5.5%

(42.9%)

(43.4%)

Licenses and services

2,213

1.0%

2,851

0.9%

(22.4%)

(22.4%)

Rental income investment properties

853

0.4%

2,144

0.7%

(60.2%)

(61.4%)

Total

221,734

100.0%

317,075

100.0%

(30.1%)

(31.5%)

All product categories were down for the reasons already discussed in the previous two sections.

13

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Statement of financial position and Investments

Below is the statement of financial position as at 31 March 2020, reclassified by sources and uses compared to the position as at 31 December 2019 and 31 March 2019:

(In thousands of Euro)

31 March

31 December

31 March

% change

% change

2020

2019

2019

03.20 vs.

03.20 vs.

12.19

03.19

Property, plant and equipment, investment property,

320,552

333,380

340,773

(3.8%)

(5.9%)

intangible assets with a finite useful life

Right-of-use assets

551,752

576,455

565,070

(4.3%)

(2.4%)

Net working capital

334,066

334,552

300,862

(0.1%)

11.0%

Other non current assets/(liabilities), net

80,808

73,032

59,725

10.6%

35.3%

Other current assets/(liabilities), net

(18,663)

(27,721)

(6,304)

(32.7%)

196.1%

Net invested capital

1,268,515

1,289,698

1,260,126

(1.6%)

0.7%

Group shareholders' equity

716,858

763,647

745,979

(6.1%)

(3.9%)

Minority interests

20,221

21,618

28,556

(6.5%)

(29.2%)

Shareholders' equity (A)

737,079

785,265

774,535

(6.1%)

(4.8%)

Net financial debt/(surplus) (B)

531,436

504,433

485,591

5.4%

9.4%

Total sources of financing (A+B)

1,268,515

1,289,698

1,260,126

(1.6%)

0.7%

Net financial debt/(surplus) (B)

531,436

504,433

485,591

5.4%

9.4%

Lease liabilities (C)

654,798

676,329

664,284

(3.2%)

(1.4%)

Adjusted net financial debt/(surplus) (B-C)

(123,362)

(171,896)

(178,693)

(28.2%)

(31.0%)

Adjusted net financial debt(surplus)/

(16.7%)

(21.9%)

(23.1%)

Shareholders' equity

Investments in fixed assets

During the period ended 31 March 2020, the Salvatore Ferragamo Group made investments in tangible and intangible assets for a total amount of 4,990 thousand Euro, of which 3,906 thousand Euro in tangible assets and 1,084 thousand Euro in intangible assets, compared to a total of 9,706 thousand Euro in the first three months of 2019. The reduction in investments in the first quarter of 2020 compared with the prior-year period was closely associated with the Group's decision to postpone non-essential projects in order to mitigate future economic- financial impacts and protect the financial soundness of the Group.

The most important investments in tangible assets were made in the opening and refurbishment of stores (3.3 million Euro, approximately 84% of total investments in tangible assets). The main investments in intangible assets referred to the "Project Life Cycle Management-PLM" (for the integrated management of the product's life cycle, which involves all production categories: as part of this initiative, product development - a high value- added process within the luxury industry - is optimized in terms of time and synergies with the Merchandising and Production functions, integrating and enhancing all in-house activities such as design, research, costing, and industrialization), which was completed in the first quarter of 2020; the development of the e-commerce platform; and the purchase of software licenses (totaling 0.4 million Euro, i.e. 40% of investments in intangible assets in the first three months of 2020).

Investments in tangible assets under construction, amounting to 4.2 million Euro, mainly concerned the investments made for the refurbishment and opening of new stores which were not yet operational as at the reporting date.

Investments in intangible assets under development totaled 4.2 million Euro and largely consisted of investments in the development of software to support business processes, chief among them the e-commerce project, the Enterprise Business Intelligence project-aimed at rationalizing corporate reporting and analytics systems by establishing a single shared "Data Warehouse"-and a new distribution model by the Parent Company Salvatore Ferragamo S.p.A..

Amortization and depreciation (excluding depreciation of Right-of-use assets) amounted to 16,890 thousand Euro in the first three months of 2020, essentially in line with 16,919 thousand Euro in the prior-year period.

During the first three months of 2020, the Group did not make any investments in financial assets.

Right-of-use assets

This line item, amounting to 551,752 thousand Euro as at 31 March 2020, refers to the recognition of "Right-of- use assets" against "Lease liabilities" following the application of IFRS 16 as from 1 January 2019 and was down 24,703 thousand Euro from 576,455 as at 31 December 2019, largely because of 29,985 thousand Euro in depreciation expense recognized during the period.

14

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Right-of-use assets relating to lease contracts for property leased in the United States are included under Investment property and amounted to 33,043 thousand Euro as at 31 March 2020 (33,222 thousand Euro as at 31 December 2019).

Net working capital

Below is the breakdown of, and changes in, net working capital as at 31 March 2020 compared with 31 December 2019 and 31 March 2019.

(In thousands of Euro)

31 March

31 December

31 March

%

%

change

change

2020

2019

2019

03.20

03.20

vs.

vs.

12.19

03.19

Inventories and Right of return assets

392,328

395,004

383,602

(0.7%)

2.3%

Trade receivables

93,651

147,202

127,955

(36.4%)

(26.8%)

Trade payables and Refund Liabilities

(151,913)

(207,654)

(210,695)

(26.8%)

(27.9%)

Total

334,066

334,552

300,862

(0.1%)

11.0%

Net working capital was in line with 31 December 2019 and up 11.0% from 31 March 2019. Compared to 31 December 2019, the decline in Trade receivables (-36.4%), which was directly attributable to the reduction in revenues for the first quarter of 2020, was offset by the fall in Trade payables and Refund Liabilities (-26.8%), while Inventories and Right of return assets were essentially stable (-0.7%). The change relative to 31 March 2019 was attributable to the decrease in Trade payables and Refund Liabilities (-27.9%) as well as, to a lesser extent, the increase in Inventories and Right of return assets (+2.3%), offset by the decline in Trade receivables (-26.8%). Specifically, inventories of finished products were down 11,837 thousand Euro from 31 December 2019 (-3.5%) and up 13,701 thousand Euro from 31 March 2019 (+4.4%). Raw materials for production were up 18.6% from 31 December 2019 and down 9.5% compared to 31 March 2019.

Trade receivables largely referred to wholesale sales.

Trade payables mainly refer to purchases of production materials, finished products, and costs relating to outsourced manufacturing. The item Trade payables was down 27.3% compared to 31 December 2019 and 29.8% compared to 31 March 2019.

Net financial debt/(surplus)

The following table shows net financial debt as at 31 March 2020, 31 December 2019, and 31 March 2019:

(In thousands of Euro)

31 March

31 December

31 March

Change

Change

03.20 vs

03.20 vs

2020

2019

2019

12.19

03.19

A. Cash

399

1,152

1,079

(753)

(680)

B. Other cash equivalents

190,338

221,180

214,688

(30,842)

(24,350)

C. Cash and cash equivalents (A)+(B)

190,737

222,332

215,767

(31,595)

(25,030)

Derivatives - non-hedging component

679

101

286

578

393

Other financial assets

-

-

1,109

-

(1,109)

D. Current financial receivables

679

101

1,395

578

(716)

E. Current bank payables

65,088

48,060

19,882

17,028

45,206

F. Derivatives - non-hedging component

670

238

319

432

351

G. Other current financial payables

116,946

119,301

115,401

(2,355)

1,545

H. Current financial debt (E)+(F)+(G)

182,704

167,599

135,602

15,105

47,102

I. Current financial debt, net (H)-(C)-(D)

(8,712)

(54,834)

(81,560)

46,122

72,848

J. Non current bank payables

-

-

16,071

-

(16,071)

K. Derivatives - non-hedging component

-

-

4

-

(4)

M. Other non current payables

540,148

559,267

551,076

(19,119)

(10,928)

N. Non current financial debt (J)+(K)+(M)

540,148

559,267

567,151

(19,119)

(27,003)

O. Net financial debt (I)+(N)

531,436

504,433

485,591

27,003

45,845

Net financial debt as at 31 March 2020, including lease liabilities, amounted to 531,436 thousand Euro, of which 654,798 thousand Euro in current and non-current lease liabilities.

The main income and financial indicators were strongly impacted by the application of IFRS 16 starting from 1 January 2019 and are not comparable to the data from previous periods. With reference to the financial data, the recognition of Right-of-use assets mainly against lease liabilities caused a sharp increase in net financial debt.

15

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Therefore, in order to make the financial figures in 2020 and 2019 comparable to the data of the previous years, the Group restated net financial debt as at 31 March 2020, 31 December 2019, and 31 March 2019 as follows:

(In thousands of Euro)

31 March

31 December

31 March

Change

Change

03.20 vs

03.20 vs

2020

2019

2019

12.19

03.19

Net financial debt/(surplus) (a)

531,436

504,433

485,591

27,003

45,845

Non current lease liabilities

540,148

559,267

551,076

(19,119)

(10,928)

Current lease liabilities

114,650

117,062

113,208

(2,412)

1,442

Lease liabilities (b)

654,798

676,329

664,284

(21,531)

(9,486)

Adjusted net financial debt/(surplus) (a-b)

(123,362)

(171,896)

(178,693)

48,534

55,331

In the period ended 31 March 2020, the adjusted net financial position amounted to a positive 123,362 thousand Euro, down 48,534 thousand Euro from 171,896 thousand Euro as 31 December 2019. This was largely due to the adjusted cash flows used in operating activities (negative 46,539 thousand Euro and strongly affected by the decline in revenues caused by the closure of part of the Group's distribution network as well as international traffic restrictions, so-called lockdown), and 5,432 in cash flows used for investment purposes during the period. Compared to 31 March 2019, the Group's adjusted net financial position was down 55,331 thousand Euro from a positive 178,693 thousand Euro to a positive 123,362 thousand Euro.

Significant events occurred during the first three months of 2020

Below are the main events occurred during the first quarter of 2020.

Board of Directors

At the meeting held on 10 March 2020, the Company's Board of Directors approved, (i) the draft separate financial statements for 2019, the Directors' report on operations for 2019 and the consolidated financial statements as at 31 December 2019, (ii) the Report on corporate governance and ownership structure, (iii) the Report on remuneration policy and fees paid, (iv) the consolidated Non-Financial Statement for 2019, containing non-financial information pursuant to Legislative Decree no. 254 of 30 December 2016, as a separate document from the Directors' report on operations, and convened the ordinary Shareholders' Meeting for 21 April 2020.

At the same meeting on 10 March 2020, Salvatore Ferragamo S.p.A.'s Board of Directors also:

  • resolved to propose that the Shareholders' Meeting convened for 21 April 2020 distribute a dividend of 0.34 Euro per ordinary share; this proposal was subsequently withdrawn with the resolution of the Board of Directors dated 6 April 2020;
  • appointed the CFO Alessandro Corsi as Manager charged with preparing Company's Financial Reports, after consulting with the Nomination and Remuneration Committee as well as the Board of Statutory Auditors, pursuant to art. 154 bis of Italian Legislative Decree no. 58 of 24 February 1998. The appointment is effective as from 1 April 2020;
  • approved the conclusion of an agreement to acquire 100% of Arts S.r.l.-a company that has been collaborating with Salvatore Ferragamo S.p.A. since its inception in 1984, helping with the prototyping, industrialization, and quality control of products as well as the monitoring of the Group's network of suppliers with respect to men's footwear. With this deal, which closed on 27 April 2020, the Group seeks to strengthen its control over its supply chain and acquire strategic capabilities in one of its key product categories. Based on the agreed economic conditions, Salvatore Ferragamo S.p.A. paid a total of 11.3 million Euro, on top of which it shall pay an amount equal to the acquiree's net cash on hand as at 31 March 2020 (estimated at around 3.5 - 4.0 million Euro) by 28 February 2021.

On 6 April 2020, considering the epidemiological emergency caused by the COVID-19 virus and the restrictions enacted by the Italian Government, the Company's Board of Directors resolved to postpone the Shareholders' Meeting originally convened for 21 April 2020 at 9:00 am in single call to 8 May 2020 at 11:00 am, once again in single call, at the office of Notary Francesco Steidl, Via Giambologna no. 4, 50132 Florence, without any changes to the agenda. In addition, the Board of Directors resolved to use its authority as per article 106, paragraph 4 of Italian Law Decree no. 18/2020 to have shareholders participate in the Meeting exclusively through the designated representative as per article 135-undecies of Italian Legislative Decree no. 58 of 24 February 1998, i.e. Spafid S.p.A..

At the same meeting on 6 April 2020 the Board of Directors, having confirmed all the powers previously granted to the Chairman and Managing Director upon their appointment, established an Executive Committee within the Board, vesting it with the powers to monitor, oversee and support the implementation of the initiatives launched by the Company to address the emergency caused by the Covid-19 pandemic. The Executive Committee, which shall remain in office until the end of the extraordinary situation as per the resolution passed by the Board of Directors, was not granted any powers over the Company's day-to-day business operations. The Executive Committee is comprised of the Chairman Ferruccio Ferragamo, the Managing Director Micaela le Divelec Lemmi, and the Directors Francesco Caretti, Diego di San Giuliano, and Marzio Saà.

16

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Covid - 19 Update

At the end of 2019, a new coronavirus, known as Covid-19, was found in Wuhan, China. The Covid-19 Coronavirus has spread from China into South Korea, Italy, Spain, the United States, and then the rest of the world-to the point that on 11 March 2020 the World Health Organization declared a pandemic due to the speed and extent of the epidemic. In order to contain the outbreak and protect public health, several Governments around the world, starting with the Chinese one, have gradually put in place containment and social distancing measures, shutting down non-essential retail and manufacturing operations as well as limiting international and domestic travel.

These events significantly affected traffic and sales throughout the first quarter of 2020 for the Salvatore Ferragamo Group across the various distribution channels starting from late January.

In the Retail channel, sales were affected by the mandatory closure of directly operated stores. During each month, the Group's stores that were ordered to close accounted for 5.8% of the total in January, 11.8% in February, and 49.1% in March, respectively. Overall, in March 187 stores were closed.

Third-party operated stores (TPOS) were also ordered to close, resulting in a significant impact also in wholesale sales channel.

As you know, closure orders were extended or introduced also throughout April across several markets.

In terms of logistics, the Group was forced to shut down the Sesto Fiorentino hub, which supplies markets all around the world and ships e-commerce orders in Europe. As for production operations, there were problems attributable to the mandatory closure of the plants of suppliers of raw materials and finished products as well as contract manufacturers in Italy.

Executive Committee

On 6 April 2020 the Board of Directors, having confirmed all the powers previously granted to the Chairman and Managing Director upon their appointment, established an Executive Committee within the Board, vesting it with the powers to monitor, oversee and support the implementation of the initiatives launched by the Company to address the emergency caused by the Covid-19 pandemic. The Executive Committee will remain in office until the end of this extraordinary situation.

Costs and investments

The Group continues investing in the e-commerce channel and launched the new website at the end of April. The projects and investments considered non-essential or deferrable have been postponed. Investments in communication have also been scaled back-especially in the markets most affected by closure orders. Finally, the Group immediately took action to negotiate temporary or permanent rent reductions for its directly operated stores.

Personnel

Starting from February, Salvatore Ferragamo has extended the use of smart-working, introduced as an experiment during 2019, to the Italian and international offices of the Group in order to protect the health of employees, allowing operations to continue where possible and in line with regulatory requirements.

To this end, it has provided training to optimize the use of remote work tools and bolstered internal communication by leveraging the Ferragamo Together platform and creating accounts dedicated to answering all health- and business-related questions of the Group's employees.

It has defined specific safety protocols that include stringent safety measures and, finally, put in place a supplemental health insurance policy for Italian employees covering symptoms associated with Covid-19. During this period, Salvatore Ferragamo Group began the process to apply for state aid.

Dividend

In order to support the financial soundness of the Group and mitigate future economic-financial impacts, on 6 April 2020 the Board of Directors resolved to withdraw the proposal for the distribution of dividends out of Salvatore Ferragamo S.p.A.'s profits for the year 2019 and to propose that the Shareholders' Meeting allocate it to the extraordinary reserve.

Tax and customs disputes and audits (update)

Tax disputes settled during the year

As for the tax audit of Ferragamo Parfums S.p.A. started on 14 March 2018 by the Florence Economic-Financial Department of the Italian Tax Police concerning direct income taxes, VAT and other taxes for the 2015 tax year and costs incurred with entities resident in blacklisted countries for the years 2013-2014, already reported on in the 2019 Annual Report, please note that on 28 February 2020 the Company finalized the settlement of the tax audits concerning the 2016 and 2017 IRAP taxes, paying a total of 35 thousand Euro in IRAP, interest, and penalties. Moreover, the company will request a refund of approximately 21 thousand Euro's worth of excess taxes from the Inland Revenue Office as agreed under the settlement of the audit.

17

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Updates on ongoing audits

With reference to the tax audit carried out on Salvatore Ferragamo S.p.A. (Company) relating to the pass- through mechanism for CFCs for the years 2012, 2013, and 2014, as already disclosed in the 2019 Annual Report, to which reference should be made, we report the following. As for the year 2013, please note that in May 2019 the Company had appealed against the notice assessing an additional 65 thousand Euro corporate income tax liability plus nearly 30 thousand Euro in interest and penalties. Florence's Provincial Tax Commission rejected the Company's appeal and reimbursed the legal fees in a ruling filed on 14 January 2020, which the Company has not challenged as this would have been uneconomic. The dispute was settled in April 2020 with the Company paying all amounts due.

With reference to the tax dispute in which Ferragamo France S.A.S. is involved and which is now pending before the Council of State for the final stage of proceedings, as well as regarding the tax audit started in September 2018 relating to the years from 2015 to 2017, reference should be made to the 2019 Annual Report, as there were no new developments during the first quarter of 2020.

As for the ongoing tax audit of Ferragamo Deutschland GmbH relating to the tax years 2011-2014 and which started in 2016, reference should be made to the 2019 Annual Report, as there were no new developments during the first quarter of 2020.

With reference to the request submitted on 23 March 2017 by the Regional Unit of the Tuscany Inland Revenue Office to Salvatore Ferragamo S.p.A. related to the filing of documents concerning 4 separate export transactions that were canceled, reference should be made to the 2019 Annual Report, as there were no new developments during the first quarter of 2020.

Patent Box and Research and Development Tax Credit (update)

As for the tax benefits (Patent Box and R&D Tax Credit), reference should be made to the 2019 Annual Report, as there were no new developments during the first quarter of 2020.

International standard ruling on transfer pricing

As for the international standard ruling between Salvatore Ferragamo S.p.A. and the Inland Revenue Office - Central Assessment Department - International Ruling Office, concerning the determination of the transfer pricing policy Salvatore Ferragamo S.p.A. applies to its foreign subsidiaries that perform distribution operations, there were no new developments during the first quarter of 2020. The Company is waiting for the Inland Revenue Office to clarify how the Advance Pricing Agreement ("APA") is to be implemented for the year 2020 in light of the economic impact of the epidemiological emergency caused by Covid-19 on international markets.

Other information

Dividends

On 10 March 2020, the Company's Board of Directors resolved to propose that the Shareholders' Meeting convened for 21 April 2020 distribute a dividend of 0.34 Euro per ordinary share.

On 6 April 2020, acknowledging that the global economic outlook has changed significantly since the Board met on 10 March 2020 following the outbreak of the COVID-19 pandemic, the Board of Directors, after resolving to postpone the Shareholders' Meeting to 8 May 2020, in order to support the financial soundness of the Group and mitigate future economic-financial impacts, also resolved to withdraw the proposal for the distribution of dividends out of the Company's profits for the year 2019, already approved on 10 March 2020 and disclosed to the market on the same date, and to propose that the Shareholders' Meeting allocate Salvatore Ferragamo S.p.A.'s 124,211,203 Euro profit for the year 2019 to the extraordinary reserve. In this regard, it has clarified that the Group will potentially reconsider paying a dividend out of the profits for the year 2019 when there will be more certainty about the economic outlook.

Pursuant to the resolution passed by the Shareholders' Meeting on 8 May 2020, the Parent Company Salvatore Ferragamo S.p.A. will allocate the 124,211,203 Euro profit for the year to 2019 to the extraordinary reserve. Other Group companies with third-party minority shareholders did not pay or authorize any dividends during the first three months of 2020.

Financial reporting and Investor relations

Salvatore Ferragamo S.p.A., in order to maintain a constant dialogue with its Shareholders, potential investors and financial analysts, and in compliance with the recommendation of CONSOB (Italy's stock market watchdog), has set up the Investor Relator function, which ensures a continuous exchange of information between the Group and financial market participants. Financial data, corporate presentations, interim reports, official press releases, and real-time share price information are available on the Group's website

http://group.ferragamo.com.

18

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Stakes in Salvatore Ferragamo S.p.A.

As at 31 March 2020, Ferragamo Finanziaria S.p.A. held a majority stake in the share capital of Salvatore Ferragamo S.p.A., i.e. 54.276% as per the disclosure of Ferragamo Finanziaria S.p.A. pursuant to form 120/A in Attachment 4 to the Consob Issuers' Regulation.

Treasury shares and shares or stakes in parent companies

As at 31 March 2020, Salvatore Ferragamo S.p.A. held 150,000 treasury shares, equal to 0.09% of the share capital. On the same date, its subsidiaries did not hold any of its shares. The Group does not hold directly or indirectly shares in parent companies, and during the period it did not buy or sell shares in parent companies.

Staff

Here below is the Salvatore Ferragamo Group's staff divided by category as at 31 March 2020, 31 December 2019, and 31 March 2019.

Staff

31 March

31 December

31 March

2020

2019

2019

Top managers, middle managers and store managers

782

771

745

White collars

3,048

3,207

3,095

Blue collars

295

299

301

Total

4,125

4,277

4,141

Basis of presentation

This Interim report was approved by the Board of Directors of Salvatore Ferragamo S.p.A. on 12 May 2020 and, on the same date, the Board authorized its release to the public. This Interim report was not prepared in accordance with IAS 34 "Interim Financial Reporting", as the Group applies said standard to half-year reports and not also quarterly reports.

For comparative purposes, the consolidated financial statements show the comparison with the consolidated statement of financial position as at 31 December 2019 and 31 March 2019 and the consolidated income statement as at 31 March 2019.

All amounts are expressed in Euro and are rounded to the nearest thousand Euro, unless otherwise indicated.

The accounting standards used to prepare the equity, income and financial data as at 31 March 2020 were the International Financial Reporting Standards (IFRS) and the related interpretations, issued by the International Accounting Standards Board (IASB) and adopted by the European Union, in force at the reporting date.

In preparing the Interim report, the same accounting standards have been applied as adopted in drawing up the Consolidated Annual Report of the Salvatore Ferragamo Group for the year ended 31 December 2019, to which reference should be made, except for the adoption of the new or revised standards of the International Accounting Standards Board (IASB) and interpretations of the International Financial Reporting Interpretations Committee (IFRIC), which are effective as from 1 January 2020.

The procedures used for making estimates and assumptions are the same as those used in preparing the consolidated annual report.

Consolidation area

During the first three months of 2020, the Group structure underwent no changes. As already mentioned in the Annual Report as at 31 December 2019, Ferragamo Denmark ApS, which had ceased operations in 2019, was struck off the Copenhagen Company Register on 7 January 2020.

Ferragamo Argentina S.A. operates in a country that has been considered a hyperinflationary economy since 1 July 2018 in accordance with IAS 29 "Financial Reporting in Hyperinflationary Economies"; therefore, this accounting standard has been applied as from 2018 in the reporting of the financial position, financial performance, and cash flows of Ferragamo Argentina S.A. for consolidated purposes. For further details, reference should be made to note 2 Basis of presentation in the Explanatory notes to the Consolidated financial statements as at 31 December 2018 and 2019. The impact of the application of the new standard as at 31 March 2020 is not to be considered material at the Group level.

Translation of financial statements in currencies other than the Euro and of items denominated in foreign currency

The exchange rates used to determine the value in Euro of subsidiaries' financial statements expressed in foreign currency were (to 1 Euro) as follows:

19

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Average exchange rates

Exchange rates at the end of the reporting period

31 March

31 March

31 March

31 December

31 March

2020

2019

2020

2019

2019

US Dollar

1.1027

1.1358

1.0956

1.1234

1.1235

Swiss Franc

1.06684

1.13239

1.0585

1.0854

1.1181

Japanese Yen

120.097

125.083

118.90

121.94

124.45

Pound Sterling

0.8623

0.8725

0.8864

0.8508

0.8583

Danish Krone

7.4715

7.4637

7.4674

7.4715

7.4652

Australian Dollar

1.6791

1.5944

1.7967

1.5995

1.5821

South Korean Won

1,316.27

1,278.59

1,341.02

1,296.28

1,276.45

Hong Kong Dollar

8.5686

8.9116

8.4945

8.7473

8.8195

Mexican Peso

22.092

21.806

26.1772

21.2202

21.6910

New Taiwanese Dollar

33.171

34.9991

33.1762

33.5564

34.6170

Singapore Dollar

1.5281

1.5388

1.5633

1.5111

1.5214

Thai Baht

34.5025

35.9188

35.9250

33.4150

35.6320

Malaysian Ringgit

4.6094

4.6466

4.7330

4.5953

4.5838

Indian Rupee

79.9095

80.0720

82.8985

80.1870

77.7190

Macau Pataca

8.819

9.165

8.7569

9.0033

9.0618

Chinese Renminbi

7.6956

7.6635

7.7784

7.8205

7.5397

Chilean Peso

886.52

757.33

935.19

843.690

763.47

Argentine Peso

67.790

44.238

70.580

67.205

48.577

Brazilian Real

4.9167

4.2775

5.7001

4.5157

4.3865

Canadian Dollar

1.4819

1.5101

1.5617

1.4598

1.5000

Transactions with related parties

Sales and purchases between related parties are carried out at normal market prices. The outstanding balances at the end of the period are not backed by guarantees, do not generate interest, and are settled in cash. As at 31 March 2020, bank guarantees were issued in favor of Palazzo Feroni Finanziaria S.p.A. (1,914 thousand Euro), in favor of Lungarno Alberghi S.r.l. (488 thousand Euro) and in favor of Ferragamo Finanziaria S.p.A. (23 thousand Euro): they concerned the leasing of properties owned by said companies. There are no other guarantees, given or received, relating to receivables and payables with related parties. The Salvatore Ferragamo Group has not set aside any provision for bad debt in relation to amounts due from related parties.

Significant non-recurring events and transactions

During the first three months of 2020, the Salvatore Ferragamo Group did not carry out significant non-recurring transactions.

Transactions arising from atypical and/or unusual transactions

The Group did not undertake atypical and/or unusual transactions, i.e. those transactions which, due to their importance/size, the counterparties involved, the subject of the transaction, the means of determining the transfer price, and the timing of the event, may give rise to doubts about the fairness/completeness of the information provided in the Interim report, conflicts of interest, the safeguarding of the company's equity, and the protection of minority interests.

Significant events occurred after 31 March 2020

Shareholders' Meeting

  • Approval of the 2019 Separate Financial Statements

Considering the epidemiological emergency caused by the COVID-19 virus, at the meeting held on 6 April 2020 the Board of Directors resolved to postpone the Shareholders' Meeting originally convened for 21 April 2020 in single call to 8 May 2020, once again in single call, without any changes to the agenda.

On 8 May 2020, the Shareholders' Meeting of the Parent company Salvatore Ferragamo S.p.A. approved the separate financial statements for the year ended 31 December 2019 and the allocation of the 124,211,203 profit for the year 2019 to the extraordinary reserve, as detailed in the specific section "Dividends".

On the same date, the Shareholders' Meeting also:

- elected the members of the Board of Statutory Auditors for the 2020 - 2022 period based on a slate- voting system. The members, who shall remain in office until the Meeting convened to approve the financial statements at 31 December 2022, are: Andrea Balelli, elected from the minority slate submitted by a group of Italian and international asset management companies and financial

20

Interim report as at 31 March 2020

Salvatore Ferragamo Group

intermediaries that own an interest in the Company, and subsequently appointed as Chairman of the Board; Giovanni Crostarosa Guicciardi and Paola Caramella, Acting Statutory Auditors elected from the majority slate submitted by Ferragamo Finanziaria S.p.A.; Antonella Andrei and Roberto Coccia, Substitute Statutory Auditors elected from the majority and minority slates, respectively. Finally, the Meeting fixed the gross annual fee of the Chairman of the Board of Statutory Auditors at 64,000 Euro and the gross annual fee of each Acting Statutory Auditor at 48,000 Euro;

  • authorized the Board of Directors to buy, including in multiple rounds, ordinary shares in Salvatore Ferragamo with a par value of 0.10 Euro each, up to a maximum amount that, considering the ordinary shares in Salvatore Ferragamo held from time to time by the Companies or its subsidiaries, shall not exceed 1% (i.e. 1,687,900 ordinary shares) of the Company's share capital in accordance with article 2357, paragraph 3 of the Italian Civil Code;
  • approved the Company's policy concerning the remuneration of the members of the governing bodies, general managers, managers with strategic responsibilities, and the members of control bodies for the year 2020, as well as the procedures used to adopt and implement said policy, as described in Section I of the report on remuneration policy and fees paid;
  • voted in favor of Section II of the report on remuneration policy and fees paid, which includes, among other things, a list of the fees paid to said individuals in any capacity and in any form for the year ended 31 December 2019.

Outlook

The short-term economic outlook has suddenly deteriorated at a global level and faces considerable uncertainty. The COVID-19 pandemic, which began in China and then spread to the rest of the world, is causing a significant adverse shock that could have a strong negative impact on business operations, at least in the short term, by affecting both supply and demand; at this time, assessing the full impact of such a shock is still extremely hard. Assuming a base scenario where the virus is contained in the next few months and growth gradually returns to normal in the second half of 2020, looking beyond the short term, the combination of very favorable financial conditions, slightly reduced uncertainty at the global level, the ensuing gradual rebound in external demand, and the considerable easing of fiscal policies should fuel a recovery. In its April forecasts, the International Monetary Fund anticipates a global recession in 2020, with GDP shrinking by -3%, and a +5.8% rebound in 2021. With respect to the world's major economies, GDP growth is expected to decline by -5.9% in 2020 and rise by +4.7% in the following year in the US, fall by -7.5% in 2020 and rise by +4.7% in 2021 in the Euro Area, and increase by +1.2% in 2020 and +9.2% in 2021 in China.

Management confirms its medium/long-term goals as it continues seeking to strengthen the Salvatore Ferragamo Group's competitive position among the leaders of the luxury market. Promoting creativity, glamour, Italian craftsmanship, and our consolidated heritage in the footwear and accessories sector remain the core values that drive the Group's strategy. Considering the uncertainty caused by the fast-movingCovid-19 Coronavirus outbreak and the challenges in estimating when it will end at the global level, Management believes it cannot make reliable forecasts as to how sales will perform this year in the various markets and distribution channels. Against this backdrop, in order to mitigate the potential negative impacts of the crisis triggered by the pandemic on the Group, Management has taken a series of concrete steps to curb spending and investments. These steps mainly consist in thoroughly and consistently rationalizing all costs, constantly and carefully monitoring whether to continue incurring certain expenses, and investing exclusively in projects considered to be essential or top priority in the current scenario.

Florence, 12 May 2020

On behalf of the Board of Directors

The Chairman

Ferruccio Ferragamo

21

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Financial Statements

Consolidated Statement of Financial Position - Assets

31 March

of which

31

of which

31 March

of which

(In thousands of Euro)

with related

December

with related

with related

2020

2019

parties

2019

parties

parties

NON CURRENT ASSETS

Property, plant and equipment

241,385

251,805

257,209

Investment property

38,973

39,091

42,334

Right-of-use assets

551,752

113,981

576,455

117,789

565,070

103,174

Intangible assets with a finite useful life

40,194

42,484

41,230

Other non current assets

2,601

2,642

3,285

Other non current financial assets

16,807

4,947

16,939

5,193

17,129

5,229

Deferred tax assets

104,587

96,736

87,378

TOTAL NON CURRENT ASSETS

996,299

118,928

1,026,152

122,982

1,013,635

108,403

CURRENT ASSETS

Inventories

387,677

389,531

380,626

Right of return assets

4,651

5,473

2,976

Trade receivables

93,651

574

147,202

92

127,955

69

Tax receivables

19,043

20,107

19,890

Other current assets

27,354

1,362

32,980

2,599

36,052

5,295

Other current financial assets

679

101

1,395

Cash and cash equivalents

190,737

222,332

215,767

TOTAL CURRENT ASSETS

723,792

1,936

817,726

2,691

784,661

5,364

TOTAL ASSETS

1,720,091

120,864

1,843,878

125,673

1,798,296

113,767

22

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Consolidated Statement of Financial Position - Liabilities and Shareholders' Equity

31 March

of which

31

of which

31 March

of which

(In thousands of Euro)

with related

December

with related

with related

2020

2019

parties

2019

parties

parties

SHAREHOLDERS' EQUITY

GROUP SHAREHOLDERS' EQUITY

Share capital

16,879

16,879

16,879

Reserves

739,055

659,487

718,937

Net profit/(loss) - Group

(39,076)

87,281

10,163

TOTAL GROUP SHAREHOLDERS' EQUITY

716,858

763,647

745,979

MINORITY INTERESTS

Share capital and reserves - minority interests

22,591

21,534

27,673

Net profit/(loss) - minority interests

(2,370)

84

883

TOTAL MINORITY INTERESTS

20,221

21,618

28,556

TOTAL SHAREHOLDERS' EQUITY

737,079

785,265

774,535

NON CURRENT LIABILITIES

Non current interest-bearing loans & borrowings

-

-

16,071

Provisions for risks and charges

13,783

13,921

20,209

Employee benefit liabilities

12,150

11,901

11,452

Other non current liabilities

12,066

98

11,893

49

10,922

Non current lease liabilities

540,148

96,766

559,267

99,261

551,076

84,751

Other non current financial liabilities

-

-

4

Deferred tax liabilities

5,188

5,570

5,484

TOTAL NON CURRENT LIABILITIES

583,335

96,864

602,552

99,310

615,218

84,751

CURRENT LIABILITIES

Trade payables

144,586

274

198,934

423

205,852

435

Refund liabilities

7,327

8,720

4,843

Interest-bearing loans & borrowings

65,088

48,060

19,882

Tax payables

9,274

26,491

14,067

Other current liabilities

55,786

11,398

54,317

10,753

48,179

1,712

Current lease liabilities

114,650

21,823

117,062

21,910

113,208

19,818

Other current financial liabilities

2,966

2,477

2,512

TOTAL CURRENT LIABILITIES

399,677

33,495

456,061

33,086

408,543

21,965

TOTAL LIABILITIES

983,012

130,359

1,058,613

132,396

1,023,761

106,716

TOTAL LIABILITIES AND SHAREHOLDERS'

EQUITY

1,720,091

130,359

1,843,878

132,396

1,798,296

106,716

23

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Consolidated Income Statement

(In thousands of Euro)

Quarterly period ended 31 March

2020

of which with

2019

of which with

related parties

related parties

Revenues from contracts with customers

220,881

40

314,931

64

Rental income investment properties

853

2,144

Revenues

221,734

317,075

Cost of goods sold

(91,495)

(116,519)

Gross profit

130,239

200,556

Style, product development and logistics costs

(10,300)

(123)

(12,354)

(163)

Sales & distribution costs

(106,924)

(6,141)

(113,421)

(5,686)

Marketing & communication costs

(17,227)

(3)

(20,428)

(10)

General and administrative costs

(31,653)

(2,002)

(33,294)

(1,888)

Other operating costs

(5,666)

(19)

(5,649)

(13)

Other income

5,202

-

5,759

1

Operating profit/(loss)

(36,329)

21,169

Financial charges

(26,794)

(879)

(15,405)

(682)

Financial income

15,191

-

9,544

Profit/(loss) before taxes

(47,932)

15,308

Income Taxes

6,486

(4,262)

Net profit/(loss) for the period

(41,446)

11,046

Net profit/(loss) - Group

(39,076)

10,163

Net profit/(loss) - minority interests

(2,370)

883

(In Euro)

Period ended 31 March

2020

2019

Net earnings/(loss) per share - ordinary shares

(0.232)

0.060

Diluted earnings/(loss) per share - ordinary shares

(0.232)

0.060

24

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Consolidated Statement of Comprehensive Income

(In thousands of Euro)

Quarterly period ended 31 March

2020

2019

Net profit/(loss) for the period (A)

(41,446)

11,046

Other income/(losses) that will be subsequently reclassified

to net profit/(loss) for the period

- Currency translation differences of foreign operations

(6,567)

(2,300)

- Net gain/(loss) from cash flow hedge

(130)

(3,026)

- Income taxes

31

726

(99)

(2,300)

Total other income/(losses) that will be subsequently reclassified

to net profit/(loss) for the period, net of taxes (B1)

(6,666)

(4,600)

Other income/(losses) that will not be subsequently reclassified

to net profit/(loss) for the period

- Net gain/(loss) from recognition of defined-benefit plans for employees

(131)

(12)

- Income taxes

32

2

(99)

(10)

Total other income/(losses) that will not be subsequently reclassified

to net profit/(loss) for the period, net of taxes (B2)

(99)

(10)

Total other income/(losses) for the period, net of taxes (B1+B2 = B)

(6,765)

(4,610)

Total comprehensive income for the period, net of taxes (A+B)

(48,211)

6,436

Group

(46,115)

4,843

Minority interests

(2,096)

1,593

25

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Consolidated Statement of Cash Flows

Quarterly period ended 31 March

of which

2020

2019

with

of which with

related

(In thousands of Euro)

related parties

parties

NET PROFIT/(LOSS) FOR THE PERIOD

(41,446)

11,046

Adjustments to reconcile net profit (loss) to net cash from (used in)

operating activities:

Amortization, depreciation and write-downs of tangible and intangible

6,306

43,890

4,453

assets, investment property and right-of-use assets

47,890

Income taxes*

(6,486)

4,262

Provision for employee benefit plans

192

199

Allocation to/(use of) the provision for obsolete inventory

18,818

6,339

Losses and provision for bad debt

768

144

Losses/(gains) on disposal of tangible/intangible assets

60

108

Interest expense and interest expense on lease liabilities*

4,495

879

4,426

682

Interest income*

(357)

-

(291)

Other non-monetary items

(525)

79

Changes in operating assets and liabilities:

Trade receivables

52,252

(482)

21,822

74

Inventories

(24,928)

(26,797)

Trade payables

(54,231)

(149)

(5,133)

93

Other receivables and tax payables*

(6,183)

(5,024)

Employee benefits payments

(138)

(202)

Other assets and liabilities*

6,601

894

(1,032)

505

Other - net

(313)

(53)

Income taxes paid*

(8,952)

1,283

(2,393)

5,094

Interest expense and interest expense on lease liabilities paid*

(5,713)

(974)

(4,426)

(682)

Interest income received*

357

-

291

NET CASH FROM (USED IN) OPERATING ACTIVITIES

(17,839)

7,757

47,255

10,219

Cash flow from investing activities:

Purchase of tangible assets

(4,348)

(7,928)

Purchase of intangible assets

(1,084)

(1,464)

Proceeds from the sale of tangible and intangible assets

2

14

NET CASH FROM (USED IN) INVESTING ACTIVITIES

(5,430)

-

(9,378)

-

Cash flow from financing activities:

Net change in financial receivables

-

(137)

Net change in financial payables

15,794

(1,385)

Repayment of lease liabilities

(28,700)

(5,021)

(25,353)

(4,287)

Treasury share repurchase

-

(638)

NET CASH FROM (USED IN) FINANCING ACTIVITIES

(12,906)

(5,021)

(27,513)

(4,287)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(36,175)

10,364

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

222,332

207,707

Increase/(decrease) in cash and cash equivalents

(36,175)

10,364

Effect of exchange rate translation differences

4,580

(2,304)

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

190,737

215,767

*To provide a better presentation, the additional information (interest paid, income taxes paid, interest received, and dividends received) reported as at 31 March 2019 in a dedicated table following the statement of cash flows has been included in the line item net cash from/(used in) operating activities, consistently with the data as at 31 March 2020.

26

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Statement of changes in consolidated shareholders' equity

Treasury

Cash

Net

Share

Effect

profit/

Group

Total

Share capital

Legal Extraordinary

flow

Translation

Retained

Other

Minority

(In thousands of Euro)

capital

share

contributions

reserve

reserve

hedge

reserve

earnings

reserves

IAS 19

(loss)

shareholders'

interests

shareholders'

reserve

reserve

Equity

for the

equity

equity

period

As at 01.01.2020

16,879

(2,776)

2,995

4,188

504,319

(499)

(16,002)

166,510

4,164

(3,412)

87,281

763,647

21,618

785,265

Allocation of results

-

-

-

-

-

-

-

87,281

-

-

(87,281)

-

-

-

Net profit/(loss) for the period

-

-

-

-

-

-

-

-

-

-

(39,076)

(39,076)

(2,370)

(41,446)

Other comprehensive income/(loss)

-

-

-

-

-

(99)

(6,817)

(24)

-

(99)

-

(7,039)

274

(6,765)

Total comprehensive income (loss)

-

-

-

-

-

(99)

(6,817)

(24)

-

(99)

(39,076)

(46,115)

(2,096)

(48,211)

Purchase of min. interests in companies

consolidated on a line-by-line basis and

-

-

-

-

-

-

-

(699)

-

-

-

(699)

699

-

accounting of options on min. interests

Stock Grant Reserve

-

-

-

-

-

-

-

-

25

-

-

25

-

25

As at 31.03.2020

16,879

(2,776)

2,995

4,188

504,319

(598)

(22,819)

253,068

4,189

(3,511)

(39,076)

716,858

20,221

737,079

Treasury

Cash

Net

Share

Effect

profit/

Group

Total

(In thousands of Euro)

Share capital

Legal

Extraordinary

flow

Translation

Retained

Other

Minority

capital

share

contributions

reserve

reserve

hedge

reserve

earnings

reserves

IAS 19

(loss)

shareholders'

interests

shareholders'

reserve

reserve

Equity

for the

equity

equity

period

As at 01.01.2019

16,879

(251)

2,995

4,188

478,378

(3,049)

(9,014)

161,752

16,268

(2,816)

88,361

753,691

26,647

780,338

Allocation of results

-

-

-

-

-

-

88,361

-

-

(88,361)

-

-

-

Net profit/(loss) for the period

-

-

-

-

-

-

-

-

-

-

10,163

10,163

883

11,046

Other comprehensive income/(loss)

-

-

-

-

-

(2,300)

(3,060)

50

-

(10)

-

(5,320)

710

(4,610)

Total comprehensive income (loss)

-

-

-

-

-

(2,300)

(3,060)

50

-

(10)

10,163

4,843

1,593

6,436

Purchase of min. interests in companies

consolidated on a line-by-line basis and

-

-

-

-

-

-

-

(340)

-

-

-

(340)

316

(24)

accounting of options on min. interests

Treasury share repurchase

-

(638)

-

-

-

-

-

-

-

-

(638)

-

(638)

Effect of the first-time adoption of IFRS16

-

-

-

-

-

-

-

(11,761)

-

-

(11,761)

-

(11,761)

Stock Grant Reserve

-

-

-

-

-

-

-

-

184

-

-

184

-

184

As at 31.03.2019

16,879

(889)

2,995

4,188

478,378

(5,349)

(12,074)

249,823

4,691

(2,826)

10,163

745,979

28,556

774,535

27

Interim report as at 31 March 2020

Salvatore Ferragamo Group

Statement pursuant to paragraph 2, article 154 bis of Leg. Decree no. 58/98 (Consolidated Law on Finance)

The Manager charged with preparing Company's Financial Reports states, pursuant to paragraph 2, article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this document is in line with accounting books and records.

Florence, 12 May 2020

Manager charged with preparing Company's Financial Reports

Alessandro Corsi

28

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Salvatore Ferragamo S.p.A. published this content on 19 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2020 00:07:05 UTC