CALIDA : Half-year report 2020

HALF-YEAR REPORT 2020

CALIDA  IPeople

CONTENTS

4 Letter to Shareholders

11 CALIDA GROUP at a glance

16 Consolidated interim financial statements 2020 CALIDA GROUP

20 Notes to the consolidated interim financial statements

30 Organisation and key dates

4

Half-year report 2020  |Letter to Shareholders

CALIDA GROUP is well placed thanks to its online business and forward-looking strategy

DEAR SHAREHOLDERS

In this letter, we had planned to report to you about rising revenue and about how we had successfully continued with the implementation our strategy. Instead of this, our development has been seriously affected by COVID-­19.

The year 2020 got off to an very positive start for the CALIDA GROUP. This all changed in mid-March when the coronavirus crisis reached Europe. Mid- March we were required by administrative orders to close virtually all of our stores and points of sale at important retail partners.

From the outset, maintaining our business and financial stability were our top priority. We immediately set up a crisis team, which ensured that the CALIDA GROUP and its employees, customers and business partners stayed healthy and came through this crisis unscathed. In addition, we had shifted our focus to

Reiner Pichler and Hans-KristianHoejsgaardthe online channel at an early stage and were therefore able to compensate for some of the lost revenue

in the bricks-and-mortar business.

Even if the crisis has not yet been weathered, the measures we have put in place have proven to be successful to this day, ensuring both the continuation of business operations and the health of our em­ ployees. We would like to provide more detailed ­infor­mation on some key issues below.

PROTECTING EMPLOYEES,

CUSTOMERS AND CONSUMERS

Protecting our employees and customers is always our top priority. After the outbreak of the virus we made it possible for all employees to work from home where this made sense. This was an extraordinary achievement on the part of our IT department, which very quickly put in place the technical requirements to facilitate remote working and ensure data security at the same time. Wherever this was not possible for operational reasons appropriate safeguards were put in place. This applies in particular to employees in production and logistics.

In order to protect our customers and employees, from mid-March we had to close all of our stores in Switzerland, Germany and France. Even though this caused a significant drop in revenue, we are convinced that it was the right decision.

CRISIS MANAGEMENT

We are very proud of how our employees and the organisation have responded to this crisis. Investments in team building in recent years have led to a greater sense of belonging in the ­CALIDA GROUP which has been of great help to us in these testing times.

Each of our divisions has exercised social responsibi­ lity and supported the region where they are based. For example, CALIDA and the MILLET MOUNTAIN GROUP both shifted production at short notice

to producing­ masks and medical protective clothing, and made these available to local hospitals in ­Switzerland and France. LAFUMA MOBILIER also supported local hospitals with sterile loungers for hospital staff to relax.

REVENUE DEVELOPMENT

Our revenue development at the beginning of the year was highly satisfactory. However, the closure of all of our stores and points of sale from mid-March to the end of April in Germany or mid-May in Switzerland and France inevitably led to a drop in revenue. Even if the development since the reopening of the stores has been very positive and all of our brands are ex­ periencing above-average sales, revenue adjusted for exchange rate effects in the first half of 2020 did decline by 14.6 percent.

Our forward-looking investments in e-commerce have enabled us to compensate for a large amount of lost revenue. The Group recorded online revenue growth of 59.2 percent and already generates more than

22.5 percent of revenue online, which is well above the market average. Investments made in recent years in our e-commerce business have once more paid off and have shown that this business segment will be decisive in the future for the fashion industry and the CALIDA GROUP. We believe that we are ideally placed in this regard and will also continue to drive forward digitisation across all channels.

FINANCIAL STABILITY

The drop in revenue which was abrupt and unprecedented in terms of its intensity has had a negative impact on our earnings. However, as the CALIDA GROUP managed its business sustainably in the past and had an equity ratio of 59.4 percent and no net debt at the end of 2019, we were better prepared to deal with this crisis than the competition.

5

22.5

E-commerce share of total sales

59.2

Growth in e-commerce (FX adjusted)

53.8

Equity ratio

27.5

Million CHF net liquidity

6

Half-year report 2020  |Letter to Shareholders

Nevertheless, the pandemic did lead to a decrease in the operating result in the first half of 2020, which resulted in an operating loss before non-recurring effects of CHF 4.4 million and an adjusted EBITDA of CHF -0.6 million. A restrictive spending policy combined with forward-looking management of net working capital led to a free cash flow of CHF -5.9 million compared to CHF -5.5 million in the prior year. Conse- quently, the statement of financial position remains free of net debt and, at 53.8 percent, the equity ratio continues to be at a high level.

Financially, the CALIDA GROUP is in an extremely sound position. On the back of the strategic measures that we have introduced in recent years, we are ­t­herefore looking with respect but positive in the future.

OUTLOOK

Dear shareholders, we are convinced that the effects of the coronavirus crisis will impact our lives for the foreseeable future. Wearing a mask to go shopping and regular disinfecting is already no longer anything out of the ordinary. Moving forward, digitisation and e-commerce combined with a retail industry that has a stronger focus on service and innovation will play

a key role. So while we do not expect any fundamental change among consumers, we do expect COVID-­19 to accelerate existing trends. Last year, we presented our six core strategic measures to you: Raising the appeal of the brand, digitising the business model and expanding through e-commerce, launching innovations continually, focusing stringently on the customer and sustainability. We are convinced that these levers will gain even more quickly in importance and enable us to record profitable growth.

The coronavirus crisis has shown that the CALIDA GROUP was significantly better prepared to face the crisis than the market.

We will continue to rigorously implement our strategy and put the customer and their needs at the heart of everything we do.

A further strategic milestone in the transformation of the CALIDA GROUP was the sale of our less profitable subsidiary OXBOW and the EIDER brand. The focus that comes along with this allows us to further ­optimise our processes and increase our profitability.

It is not easy to project the outlook for the second half of 2020. It depends to a very large extent on how COVID­-19 develops. If the crisis develops in a way that allows for a further easing of government restrictions, it will be possible to compensate for a proportion

of the lost revenue and earnings from the coronavirus lockdown in the second half of the year.

Finally, we would like to say a big thank you to all of our employees, customers and business partners. We have witnessed a great deal of understanding from all parties and are impressed how everyone has pulled together to emerge stronger together out of this crisis.

Many sincere thanks,

Hans-Kristian Hoejsgaard	Reiner Pichler
Chairman of the Board	Chief Executive Officer
of Directors

7

CALIDA stands for top quality, comfort, innovation and sustainability. Through targeted investments in recent years, the brand has succeeded in further strengthening and promoting precisely these values and consolidating its position as a key player on the international stage and a pioneer in terms of sustainability in the underwear segment.

CALIDA's comeback at the Salon de la Lingerie in Paris wowed an international audience. The central theme of this year's event perfectly complemented CALIDA's core competence, sustainability. CALIDA was able to present a special highlight: the first 100 percent biologically degradable designer

Capsule­ Collection ever seen in the industry. Developed in cooperation with the luxury fashion house ­Viktor&Rolf, the collection meets the highest sustainability­ standards. All of the styles are ­certified

according­ to both "MADE IN GREEN by Oeko-Tex®" and "Cradle to Cradle Certified™" and are therefore 100 percent compostable. The Viktor&Rolf X CALIDA Capsule Collection ­supports CALIDA's expansion and internationalisation­ strategy as a claim to being sustainable touches upon exactly the right issue to reach new customers and the younger generation.

With the outbreak of the COVID-19 pandemic

­CALIDA mobilised its capacity and resources to use its own production platform to manufacture high-­ quality hygiene masks from organic cotton and compostable TencelTM, Lyocell and thereby making a contribution to the health and safety of society as a whole. In cooperation with the organisation Trees Of Life, a tree will be planted for every TencelTM mask sold.

In spring 2020, CALIDA was awarded the Swiss Ethics Prize for its "Cradle to Cradle CertifiedTM" "100 % NATURE" series. The prize, which is awarded by the School of Management and Engineering Vaud (HEIG-VD), celebrates organisations for their ­endeavours in the field of ethics, sustainable development and social responsibility.

Adjusted for exchange rate effects, net sales decreased by 11.3 percent and in nominal terms by 14.4 percent, from CHF 63.1 million to CHF 54.0 million. Despite the targeted measures, the operating profit margin decreased from CHF 14.0 million (22.1 percent of net sales) to CHF 10.8 million (20.0 percent).

AUBADE stands for seduction, sensuality, femininity and innovation. It is in this spirit that AUBADE has collaborated for the Fall Winter 2020 collection with the young Chinese painter Hong Wai, which resulted in an outstanding lingerie line. To support this

colla­ boration,­ AUBADE has set up a 360-degree communication­ plan with shop windows in our retail stores, podiums in department stores, public relations ­campaigns and much more.

At the end of last year, AUBADE launched its new website with a fully responsive design and new features. This has allowed the brand to position itself even better. Online revenue rose sharply by 24.6 percent. Moreover, income generated from mobile devices more than doubled and now ­accounts for 1 out of 3 sales.

AUBADE has continued to strengthen its omni­ channel strategy with new services such as store to web in order to further enhance the customer experience.

Investments in digitalisation are continuing with the development of a new CRM tool which will allow us to better understand consumer habits in terms of consumption and respond to their needs.

Adjusted for exchange rate effects and in nominal terms, net sales decreased by 20.6 percent, from EUR 27.6 million to EUR 21.9 million. Despite the targeted measures, the operating profit margin decreased from EUR 7.3 million (26.6 percent of net sales) to EUR 4.6 million (21.1 percent).

8

Half-year report 2020  |Letter to Shareholders

2020 marks a new chapter for the MILLET

­MOUNTAIN GROUP. After selling the EIDER brand to the South Korean group K2, MILLET MOUNTAIN GROUP is refocusing its activities on the brands MILLET and LAFUMA. Two brands that complement each other perfectly: MILLET for mountain sports and alpine pursuits, LAFUMA for the outdoors and for leisure. Both brands possess the key strength of not depending on one season or product category

• their coherent ranges across apparel, equipment and footwear form a complete, year-round offering.

MILLET is an authentic alpine brand, which caters to all mountain lovers in a reliable and sustainable way by providing them with high performance products to achieve their goals.

LAFUMA is a pioneering outdoor brand, which offers our consumers affordable and durable products to enjoy nature and the urban environment in a sustainable way.

2020 has been, of course, heavily impacted by the crisis caused by COVID-19. On 16 March, it was put into action a demanding and pro-active crisis plan to overcome this.

The MILLET MOUNTAIN GROUP is convinced that tomorrow, it will look back on this crisis as a catalyst of positive change. The company is seeing

the acceleration­of the CSR strategy but also the strengthening of the quality commitment, to deliver products that are even more sustainable. The ­MILLET MOUNTAIN GROUP considers making a contribution to preserving nature as one of the most important responsibilities. With the positive development of the brands MILLET and LAFUMA, the company wants to continue to be an innovative partner for the consumers. The goal for the MILLET MOUNTAIN GROUP is to exit this crisis in better and stronger shape.

Adjusted for exchange rate effects, net sales

­decreased by 33.8 percent and in nominal terms by

33.5 percent, from EUR 41.1 million to EUR 27.3

million. Despite the targeted measures, the operating profit margin decreased from EUR 6.2 million (15.1 percent of net sales) to EUR -0.3 million (-1.0 percent).

Despite the repercussions of the COVID-19 crisis, which adversely affected the supply chain and sales on account of the closure of bricks-and-mortar sales channels in Europe from mid-March to the start of May 2020, LAFUMA MOBILIER proved to be very resilient and recorded growth in the first half of 2020. This is due to the rigorous implemen­ tation of strategic measures in recent years.

LAFUMA MOBILIER benefited from investments in the Home and Garden product categories and was able to increase its market share using its five-year plan, which is geared towards digitisation, inter­ nationalisation and an increased market presence with the outdoor products manufactured in France as a core element. For the first time, LAFUMA ­MOBILIER was selected by market experts as France's most popular outdoor furniture brand and awarded the "Trophée Jardin Plus" prize.

In the first half of the year LAFUMA MOBILIER further expanded its collection and sales function. The Privilege line was showcased from May to June in a pop-up store in BHV Marais in Paris and in four shops in Germany and Switzerland, the most important international markets.

In addition, LAFUMA MOBILIER took part in a well-being campaign in the COVID-19 solidarity movement and donated around 100 loungers to ­several hospitals in Europe for hospital staff to relax (these include the clinics in Cochin and Necker in Paris as well as hospitals in Lyon, Grenoble, Lucerne, Brussels, Milan and Bergamo).

Adjusted for exchange rate effects, net sales increased by 3.4 percent, 3.5 percent in nominal terms, from EUR 31.0 million to EUR 32.1 million. The operating profit margin decreased slightly from EUR 10.4 million (33.5 percent of net sales) to EUR 10.0 million (31.1 percent).

LAFUMA  IJacket  IStaten loft LAFUMA  IBackpack  IActive © Stephane Cande

CALIDA  I100% Nature

11

in CHF 1'000

CALIDA GROUP at a glance

CALIDA GROUP is a globally active apparel group with its head office in Switzerland. It consists of the brands CALIDA and AUBADE in the lingerie segment, MILLET and LAFUMA in the alpine sports and outdoor segment as well as the outdoor furniture brand LAFUMA MOBILIER. The Group generated revenue of around CHF 404 ­million in 2019 with around 3'000 employees. CALIDA Holding AG is listed on the SIX Swiss Exchange.

SELECTED KPIS

Net sales 1)

Change adjusted for exchange rate effects

EBITDA before non-recurring effect 1) 2)

as a % of net sales

Operating loss (profit) (EBIT) before non-recurring effect 1) 2)

as a % of net sales

Operating loss (profit) (EBIT) 1)

as a % of net sales

Net loss (income) 1)

as a % of net sales

Cash and cash equivalents

Current financial liabilities

Financial liabilities

Net liquidity

Operating cash flow

as a % of net sales

Free cash flow 2)

as a % of net sales

Equity ratio 2)

Net loss (income) from continuing operations per registered share in CHF Headcount as of 30 June

First	First
Half-Year 2020	Half-Year 2019	Change
146'169	179'962	-18.8%
		-14.6%
-637	10'661	-106.0%
-0.4%	5.9%
-4'433	6'459	-168.6%
-3.0%	3.6%
-8'223	6'459	-227.3%
-5.6%	3.6%
-9'753	3'882	-351.2%
-6.7%	2.2%
69'694	33'834
-42'182	-31'346
-42'182	-31'346
27'512	2'488
-3'269	6'929
-2.2%	3.9%
-5'851	-5'467
-4.0%	-3.0%
53.8%	60.4%
-1.12	0.33
2'731	3'022

1. from continuing operations
2. see page 12-13 - Alternative performance measures

12

Half-year report 2020  |CALIDA GROUP at a glance

ALTERNATIVE PERFORMANCE MEASURES

The financial information in this half-year report contains certain alternative performance measures (APMs), which are not accounting policies defined by IFRS. The CALIDA GROUP is of the opinion that disclosing an adjusted EBIT leads to a better understanding of the results as it excludes elements that are either non-recurring or extraordinary. Adjusted EBIT excludes these kinds of effects (for example: M&A transactions, impairments, restructuring, legal cases and other non-recurring items, which can vary considerably over the course of time). Adjusted EBIT thus facilitates the comparison of business performance over two comparable periods. Because there is no standardised definition of adjusted EBIT, it is not comparable with other companies (unlike IFRS in- dicators). Adjusted EBIT should not be treated as a substitute for IFRS indicators.

ADJUSTED OPERATING RESULTS (EBIT), ADJUSTED EBITDA

Impairments1)

Restructuring2)

transactions3)

4)

HY 2020

Net sales

Operating income

Operating expenses

Operating loss

Depreciation and amortisation

Leasing expense

EBITDA

HY 2019

Net sales

Operating income

Operating expenses

Operating profit

Depreciation and amortisation

Leasing expense

EBITDA

IFRS

146'169

157'485

-165'708

-8'223

15'218

-

6'995

IFRS

179'962

181'812

-175'353

6'459

12'796

-

19'255

		M&A	Other	Adjusted
-	-	-	-	146'169
-	-	-8'861	-	148'624
4'555	8'096	-	-	-153'057
4'555	8'096	-8'861	-	-4'433
-2'463	-	-	-	12'755
-	-	-	-8'959	-8'959
2'092	8'096	-8'861	-8'959	-637
Impairments1)	Restructuring2)	M&A transactions3)	Other4)	Adjusted
-	-	-	-	179'962
-	-	-	-	181'812
-	-	-	-	-175'353
-	-	-	-	6'459
-	-	-	-	12'796
-	-	-	-8'594	-8'594
-	-	-	-8'594	10'661

1. Impairments: Impairment of financial or non-financial assets on account of exceptional circumstances or non-recurring events. In the first half of 2020, COVID-19 had a significant impact on the performance of the CALIDA GROUP stores. Consequently, an additional CHF 4'555 in impairment losses were recognised on right-of-use assets and inventories. For more information, please see page 25 note 5.
2. Restructuring: This includes measures to improve organisational and business processes. The EIDER brand was sold in the first half of 2020, which led to restruc- turing at the LAFUMA GROUP. The company also decided to change the operating business model of the LAFUMA location in China and restructuring measures were initiated accordingly.
3. M&A transactions: Effects resulting from transactions at a business unit-level such as mergers, acquisitions, business unit transfers, third party takeovers, out- sourcing/insourcing, spin-offs,carve-outs or business cooperations. In the first half of 2020, the CALIDA GROUP recognised a net gain on the sale of EIDER.
4. Other: Non-recurring, unusual and rare incidents that cannot be allocated to any of the categories above. There were no such events in the first half of 2020. The leasing expenses for the EBITDA calculation are also shown in this category.

13

in CHF 1'000

EBITDA (ADJUSTED)

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is determined based on EBIT (pursuant to IFRS) plus amortisation, depreciation and impairment losses recorded in the income statement or less reversals of impairment losses on intangible assets, property, plant and equipment and right-of-use assets. Lease expenses correspond to the lease payments and are deducted in the calculation of the adjusted EBITDA to exclude the IFRS 16 impact. Furthermore, the non-recurring items described in the first paragraph under alternative performance measures are taken into account for the adjusted EBITDA.

EQUITY RATIO

The Board of Directors assesses the equity ratio excluding IFRS 16. Furthermore, the covenants in the syndicated loan agreement with the banking syndicate are also reported excluding IFRS 16. The adjusted equity ratio shows recorded equity in relation to total equity and liabilities less lease liabilities.

		30.06.2020	31.12.2019	30.06.2019
Equity ratio recognised		44.8%	48.7%	48.9%
Adjusted equity ratio - IFRS 16		53.8%	59.4%	60.4%

ADJUSTED FOR EXCHANGE RATE EFFECTS

This measure eliminates the effects of changes in exchange rates compared to the prior period. It accounts for the effects of exchange rate movements on the translation of the earnings of foreign subsidiaries in the income state- ment. When translating the results of subsidiaries, the prior period is translated using the current exchange rate.

ORGANIC GROWTH

Revenue growth excluding the contribution to revenue from business combinations and currency effects.

E-COMMERCE GROWTH

Revenue growth from the sale of products via the CALIDA GROUP's own online shops and market places.

FREE CASH FLOW

Free cash flow represents the Group's ability to conduct and maintain its business operations, finance dividend payments, repay debts and carry out acquisitions. Free cash flow is calculated using cash flow from operating ­activities less cash flow from investing activities, including cash outflows for lease payments.

Cash flow from operating activities

Cash flow from investing activities

Cash outflows from leases

Free cash flow

01.01.- 01.01.- 30.06.2020 30.06.2019

-3'269 6'929

6'902 -3'134

-9'484-9'262

-5'851-5'467

14

Half-year report 2020  |CALIDA GROUP at a glance

in CHF 1'000

DEVELOPMENT E-COMMERCE

HY20171) 2)	HY2018 2)	HY2019 2)	HY20202)
35'000			35%
30'000			30%
25'000			25%
			22.5%
20'000			20%
15'000			15%
		12.2%
	10.5%
10'000			10%
7.2%
5'000			5%
0			0%
11'537	18'735	21'950	32'944
+103.0%	+62.4%	+17.2%	+50.1%3)

1)	Acquisition of Reich Online Services GmbH as of 1 March 2017		e-commerce	Net sales
2)	Continuing operations
	in % of net sales	Variance to prior year
3)	FX-adjusted +59.2%

The activities of the Group's divisions show seasonal fluctuations. (Further details on seasonal sales development are provided in note 1 of the notes to the consolidated interim financial statements on page 23).

AUBADE  ILa reine de la nuit

16

Half-year report 2020  |Consolidated interim financial statements 2020

Consolidated interim financial statements 2020

CALIDA GROUP

Group statement of financial position

(condensed)

30.06.2020

31.12.2019

30.06.2019

Cash and cash equivalents

Trade accounts receivable

Inventories

Other current assets

Current assets

Property, plant and equipment

Right-of-use assets

Intangible assets

Other non-current assets

Non-current assets

Assets

Current financial liabilities

Current lease liabilities

Trade accounts payable

Current provisions

Other current liabilities

Current liabilities

Non-current lease liabilities

Non-current provisions

Other non-current liabilities

Non-current liabilities

Liabilities

Equity held by shareholders of CALIDA Holding AG

Non-controlling interests

Equity

69'694 57'850 33'834

30'629 33'955 33'731

79'328 87'320 100'082

18'021 19'559 21'318

197'672 198'684 188'965

17'629 19'573 20'155

74'069 87'219 91'825

54'448 57'894 59'699

12'358 11'554 10'708

158'504 176'240 182'387

356'176 374'924 371'352

42'182 23'614 31'346

15'231 17'812 17'144

20'793 24'154 23'321

6'343 1'648 1'780

50'741 57'468 46'849

135'290 124'696 120'440

44'438 49'710 53'636

3'767 4'025 3'952

13'077 13'985 11'735

61'282 67'720 69'323

196'572 192'416 189'763

154'425 174'456 169'618

5'179 8'052 11'971

159'604 182'508 181'589

Equity and liabilities		356'176 374'924	371'352

17

in CHF 1'000

Group income statement

and statement of comprehensive income

(condensed)

CONSOLIDATED INCOME STATEMENT

Net sales

Operating income

Operating expenses

Operating loss (profit)

Financial result, net

Net loss (income) from continuing operations before income taxes

Income taxes

Net loss (income) from continuing operations

Net loss (income) from a discontinued operation, after taxes 1)

Net loss (income)

01.01. -	01.01. -	01.01. -
30.06.2020 1)	30.06.2019 1)	31.12.2019 1)
146'169	179'962	372'039
157'485	181'812	376'310
-165'708	-175'353	-352'790
-8'223	6'459	23'520
-718	-1'394	-2'215
-8'941	5'065	21'305
-812	-1'183	-4'491
-9'753	3'882	16'814
-7'473	-357	-249
-17'226	3'525	16'565

attributable to:

shareholders of CALIDA Holding AG

non-controlling interests

-16'205 3'060 15'667

-1'021 465 898

Net loss (income) per registered share in CHF
from continuing operations	-1.12	0.33	1.87
Diluted net loss (income) per registered share in CHF
from continuing operations	-1.12	0.33	1.87
Net loss (income) per registered share in CHF	-1.97	0.37	1.90
Diluted net loss (income) per registered share in CHF	-1.97	0.37	1.90

1. OXBOW is reported under discontinued operations. The figures for comparable periods have been restated.

STATEMENT OF COMPREHENSIVE INCOME

Net loss (income)

Items that might be reclassified to profit and loss, after tax

Exchange differences recognised in equity

Remeasurements of cash flow hedges

Items that cannot be reclassified to profit and loss, after tax

Remeasurements of defined benefit plans

Other comprehensive income

Total comprehensive income

attributable to:

shareholders of CALIDA Holding AG

non-controlling interests

01.01. -	01.01. -	01.01. -
30.06.2020	30.06.2019	31.12.2019
-17'226	3'525	16'565
-3'337	-1'161	-4'967
419	-194	-1'697
311	-1'083	-4'045
-2'607	-2'438	-10'709
-19'833	1'087	5'856
-18'661	787	5'427
-1'172	300	429

18

Half-year report 2020  |Consolidated interim financial statements 2020

Group statement of changes in equity

1 January 2019

Net income

Other comprehensive income

Total comprehensive income

Dividend from capital contribution reserves

Share-based payments

Result from hedge accounting transerred to cost of inventories

30 June 2019

1 January 2020

Net loss

Other comprehensive income

Total comprehensive income

Acquisition of non-controlling interests

Share-based payments

Result from hedge accounting transerred to cost of inventories

30 June 2020

Share capital	Treasury shares	Capital reserves	Retained earnings	Exchange differences	Reserves	Equity held by shareholders of CALIDA Holding AG	Non-controlling interests	Equity
826	-536	6'363	199'039	-31'002	174'400	174'690	11'620	186'310
-	-	-	3'060	-	3'060	3'060	465	3'525
-	-	-	-1'237	-1'036	-2'273	-2'273	-165	-2'438
-	-	-	1'823	-1'036	787	787	300	1'087
-	-	-6'593	-	-	-6'593	-6'593	-	-6'593
-	-	370	-	-	370	370	-	370
-	-	-	364	-	364	364	51	415
826	-536	140	201'226	-32'038	169'328	169'618	11'971	181'589

826	-536	542	209'506	-35'882	174'166	174'456	8'052	182'508
-	-	-	-16'205	-	-16'205	-16'205	-1'021	-17'226
-	-	-	698	-3'154	-2'456	-2'456	-151	-2'607
-	-	-	-15'507	-3'154	-18'661	-18'661	-1'172	-19'833
-	-	-	-550	-140	-690	-690	-1'638	-2'328
-	-	228	-	-	228	228	-	228
-	-	-	-908	-	-908	-908	-63	-971
826	-536	770	192'541	-39'176	154'135	154'425	5'179	159'604

19

in CHF 1'000

Group statement of cash flows

(condensed)

01.01. -	01.01. -	01.01. -
30.06.2020	30.06.2019	31.12.2019

Net loss (income)

Depreciation, amortisation and impairments (property, plant and equipment / intangible assets)

Depreciation of right-of-use assets

Other adjustments for non-cash items

Increase (-) / decrease (+) in net working capital

Increase (+) / decrease (-) in provisions

Income taxes paid

Cash flow from operating activities

Investments in property, plant and equipment / intangible assets

Sale of property, plant and equipment / intangible assets

Outflow of cash and cash equivalents from the sale of group companies Increase (-) / decrease (+) in financial assets / interest received

Cash flow from investing activities

Increase (-) / decrease (+) in financial liabilities / interest paid Repayment of lease liabilities / interest paid on lease liabilities Dividend from capital contribution reserve

Options exercised from share-based payment plan

Acquisition of non-controlling interests

Cash flows from financing activities

Impact of exchange rate fluctuations on cash and cash equivalents

Change in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

The cash flow statement includes continuing and discontinued operations.

	-17'226	3'525	16'565
	4'008	4'535	8'783
	11'782	8'991	18'810
	584	3'350	8'356
	-5'412	-12'933	10'780
	4'747	-159	-114
	-1'752	-380	-1'663
	-3'269	6'929	61'517
	-2'489	-3'299	-9'379
	10'639	114	117
	-242	-	-
	-1'006	51	-84
	6'902	-3'134	-9'346
	20'848	2'503	-4'881
	-9'484	-9'262	-19'080
	-	-6'591	-6'591
	-	-	47
	-2'328	-	-5'770
	9'036	-13'350	-36'275
	-825	-224	-1'659
	11'844	-9'779	14'237
	57'850	43'613	43'613
	69'694	33'834	57'850

The cash flows from the discontinued operation are disclosed separately on page 26.

20

Half-year report 2020  |Consolidated interim financial statements 2020

Notes to the consolidated interim financial statements

The figures in the notes to the consolidated interim financial statements are presented in thousand Swiss francs (CHF 1'000) unless indicated otherwise (information on share prices, dividends and earnings per share are ­presented in CHF 1).

Basis of preparation

GENERAL

The consolidated interim financial statements comprise the unaudited consolidated results of CALIDA ­Holding AG and its directly or indirectly controlled subsidiaries ("CALIDA GROUP") for the period from 1 January to 30 June 2020. The report has been prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the consolidated financial statements for 2019 as it provides an update of the information reported there.

ACCOUNTING, CONSOLIDATION AND MEASUREMENT PRINCIPLES

The accounting policies applied in the consolidated interim financial statements are consistent with the consolidation and measurement principles disclosed in the 2019 consolidated financial statements, except for the amendments discussed below.

The following amended International Financial Reporting Standards (IFRSs) are applicable from 1 January 2020. The implications for the interim financial statements of the CALIDA GROUP are outlined below.

IFRS 3

IFRS 7, IFRS 9

IAS 1, IAS 8

Annual improvement process

Definition of a business 1)

Interest rate benchmark reform 1)

Definition of materiality 1)

Omnibus of amendments to various IFRSs, primarily with a view to removing inconsistencies and clarifying wording 1)

1. No significant impact on the financial position and performance or cash flows of the CALIDA GROUP.

The IASB made an amendment to IFRS 16 Leases as a practical expedient for lessees for the accounting treatment of concessions, such as deferring rent payments or rent reductions, that have been granted directly in

connection­ with the coronavirus pandemic. The CALIDA GROUP applied this amendment as per 1 January 2020 retrospectively. However, it did not have a significant impact on the financial position and performance or cash flows of the ­CALIDA GROUP.

ESTIMATES AND ASSUMPTIONS

The preparation of the consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent liabili- ties, at the end of the reporting period, and the amount of income and expenses during the reporting period. ­Assets and liabilities are recognised when it is probable that any future economic benefit associated with the item will flow to or from the entity and value or cost can be measured reliably. If these estimates and assumptions - made by management to the best of their knowledge as of the reporting date - prove to differ significantly from the actual circumstances at a later point in time, the original estimates and assumptions are adjusted in the period in which the circumstances changed.

21

in CHF 1'000

FOREIGN CURRENCY TRANSLATIONS

The following exchange rates are used for the translation into Swiss francs (CHF) for the CALIDA GROUP's major currencies:

Exchange rates at reporting date		Unit	30.06.2020	30.06.2019	31.12.2019
EUR
	1	1.0683	1.1112	1.0858
USD		1	0.9499	0.9774	0.9692
HUF		100	0.3000	0.3431	0.3288
GBP		1	1.1654	1.2390	1.2710
TND		1	0.3321	0.3398	0.3475
JPY		100	0.8819	0.9069	0.8893
CNY		1	0.1342	0.1421	0.1387
			01.01.-	01.01.-	01.01.-
Average exchange rates for the half-year/year		Unit	30.06.2020	30.06.2019	31.12.2019
EUR
	1	1.0639	1.1294	1.1123
USD		1	0.9659	0.9999	0.9937
HUF		100	0.3079	0.3524	0.3418
GBP		1	1.2165	1.2937	1.2676
TND		1	0.3374	0.3328	0.3392
JPY		100	0.8924	0.9086	0.9116
CNY		1	0.1373	0.1474	0.1438

LAFUMA MOBILIER  IAncone

23

in CHF 1'000

Notes to the consolidated interim financial statements

1. SEASONALITY OF OPERATING BUSINESS

The activities of the Group's divisions show seasonal fluctuations. Experience has shown sales in the CALIDA ­division to be significantly higher in the second half of the year, while the operating expenses remain relatively stable. In the first six months, inventories are increased, which burdens liquidity and also lowers the segment's operating profit contribution by not yet realised contribution margins. There are no major seasonal fluctuations in sales between the first and second half of the year in the AUBADE division. The operating expenses remained relatively stable over the course of the year. The brand MILLET of the MILLET MOUNTAIN GROUP recognises significantly higher sales with corresponding operating profit contribution in the second half of the year as it is strongly oriented towards the winter. These seasonal fluctuations at CALIDA and the MILLET MOUNTAIN GROUP division are partially offset by the activities of the LAFUMA MOBLIER with its garden furniture, which realises the majority of sales in the first half of the year.

2. IMPACT OF COVID-19

The revenue development at the beginning of the year was highly satisfactory. However, the closure of all the stores and points of sale from mid-March to the end of April in Germany or mid-May in Switzerland and France inevitably led to a drop in revenue. Even if the development since the reopening of the stores has been very positive and all of the brands are experiencing above-average sales, revenue adjusted for exchange rate effects in the first half of 2020 did decline by 14.6%. The forward-looking investments in e-commerce have enabled the CALIDA GROUP to compensate for a large amount of lost revenue. The Group recorded online revenue growth of 59.2% (fx-adjusted) and already generates more than 22.5% of revenue online, which is well above the market average. Investments made in recent years in the e-commerce business have once more paid off and have shown that this business segment will be decisive in the future for the fashion industry and the CALIDA GROUP. The CALIDA GROUP believes that it is ideally placed in this regard and will also continue to drive forward digitisation across all channels. Further effects are described in note 5.

3. SEGMENT REPORTING

As chief operating decision maker, the CALIDA GROUP Executive Management determines the business activities and monitors internal reporting to assess performance and make decisions about resources to be allocated. After the sale of OXBOW, the CALIDA GROUP has four reportable segments, which are organised and managed in line with the market orientation. The prior-year figures have been restated.

SEGMENTS

The brands CALIDA, AUBADE and LAFUMA MOBILIER each form a reportable segment. The MILLET MOUNTAIN­ GROUP combines the two mountain sports and outdoor brands MILLET and LAFUMA.

OTHER ACTIVITIES

Besides corporate functions, other activities contain some smaller activities which are not allocated to an operating segment. The operations of the multi-brand webshop www.onmyskin.de and webshops for the third-party brands are reported in other activities.

OPERATING REPORTING

The CALIDA GROUP monitors segment performance at the level of the operating profit contribution, which shows - in the presentation according to the cost of sales method - the operating profit contribution of each segment after deduction of cost of goods sold and allocated sales and marketing costs (e.g., costs of the sales ­organisation, rent for shop floorspace).

The non-allocated operating costs mainly contain costs for product development, logistics, IT, administration and management.

The CALIDA GROUP's operational reporting is based on International Financial Reporting Standards (IFRS). Segment reporting was shown for the current year and the prior year excluding OXBOW.

24

Half-year report 2020  |Consolidated interim financial statements 2020

01.01.-30.06.2020

Net sales

• thereof e-commerce
• thereof bricks-and-mortar sales channels Operating profit contribution Non-allocated operating costs Operating loss
  Financial result, net

Net loss before income taxes from continuing operations

Depreciation and amortisation

of property, plant and equipment and intangible assets

Depreciation of right-of-use assets

  thereof impairment

Investments in property, plant and ­equipment and intangible assets

		MILLET
		MOUNTAIN	LAFUMA	Other	CALIDA
CALIDA	AUBADE	GROUP	MOBILIER	activities	GROUP
53'981	23'300	29'069	34'142	5'677	146'169
15'551	4'000	2'694	5'182	5'517	32'944
38'430	19'300	26'375	28'960	160	113'225
10'800	4'911	-305	10'638	728	26'772
					-34'995
					-8'223
					-718
					-8'941
-1'668	-448	-1'197	-442	-184	-3'939
-5'416	-3'292	-2'203	-246	-122	-11'279
-1'376	-1'087	-	-	-	-2'463
903	388	505	220	50	2'066

01.01.-30.06.2019

Net sales

• thereof e-commerce
• thereof bricks-and-mortar sales channels Operating profit contribution Non-allocated operating costs Operating profit
  Financial result, net

Net income before income taxes from continuing operations

Depreciation and amortisation

of property, plant and equipment and intangible assets

Depreciation of right-of-use assets

Investments in property, plant and ­equipment and intangible assets

		MILLET
		MOUNTAIN	LAFUMA	Other	CALIDA
CALIDA	AUBADE	GROUP	MOBILIER	activities	GROUP
63'063	31'166	46'436	34'976	4'321	179'962
10'158	3'420	2'067	1'984	4'321	21'950
52'905	27'746	44'369	32'992	-	158'012
13'953	8'285	7'027	11'764	310	41'339
					-34'880
					6'459
					-1'394
					5'065
-1'723	-512	-1'373	-464	-209	-4'281
-3'772	-2'278	-2'128	-219	-117	-8'514
1'217	400	1'037	385	94	3'133

4. INTANGIBLE ASSETS

On 24 January 2020, the CALIDA GROUP sold the EIDER brand to the South Korean K2 Group. The gain on sale of the EIDER brand amounted to CHF 8'861. In addition, the sale of the EIDER brand also led to restructuring costs in the LAFUMA GROUP (see note 6).

25

in CHF 1'000

5. IMPAIRMENT OF CURRENT AND NON-CURRENT ASSETS

Impairment tests were carried out for the CALIDA GROUP's stores in connection with the COVID-19 crisis

("triggering­ event"). The recoverable amount of a CGU (store) is derived from the value-in-use calculation. The impairment tests led to the recognition of impairment losses of CHF 2'463 for various stores in the CALIDA GROUP. Pre-tax discount rates of 7.7% to 12.0% were applied for these impairment tests (pre-tax discount rates as of 31.12.2019: 7.2% to 11.5%).

Subsequently, increased levels of depreciation were recognised on excess inventories from the previous spring collection in the amount of CHF 2'092.

6. RESTRUCTURING PROVISIONS

Restructuring costs of CHF 6'342 were recognised in the first half of financial year 2020, which largely relate to the sale of the EIDER brand. These restructuring costs include wage costs for the redundancy plan, costs for terminating contracts with retailers, impairments of inventories and legal and other advisory costs at the

LAFUMA GROUP.

In addition, provisions of CHF 1'754 were recognised for the change of the operating business model of the ­LAFUMA GROUP in China.

7. DISCONTINUED OPERATIONS

On 28 May 2020 LAFUMA SA, a subsidiary of the CALIDA GROUP, closed the sale of OXBOW SAS to the French company Rainbow SAS. As part of the sale LAFUMA SA acquired an equity interest of 18.6% in Rainbow SAS, the new parent company of OXBOW. The equity interest was entered into the accounts as a financial instrument at a fair value of CHF 176. At the time of recognition the financial instrument was irrevocably designated as being recognised at fair value through consolidated other comprehensive income. Consequently, in the future, changes to the fair value will be recognised through consolidated other comprehensive income.

An earn-out was agreed for the sale of OXBOW; this contingent consideration is due in 2025. The payment by Rainbow SAS to LAFUMA SA in 2025 is dependent on exceeding a certain EBITDA. At the time of the sale, no value had been assigned to the earn-out.

In the course of the sale of OXBOW, LAFUMA SA granted loan of CHF 2'349 to Rainbow SAS. The loan was agreed with payment in kind (PIK) interest. This loan is classified as a non-current receivable under IFRS 9. The loan was recorded with a fair value of CHF 1'243 in the books.

Result from the discontinued operation OXBOW

Net sales

Operating expenses

Operating profit (loss)

Financial result, net

Net income (loss) before taxes

Taxes

Net profit (loss)

Loss on disposal of group companies

Loss from the discontinued operation, after taxes

01.01.- 01.01.- 28.05.2020 30.06.2019

9'661 16'685

-9'360-16'859

301 -174

-47-115

254 -289

-53-68

201 -357

-7'674 -

-7'473-357

26

Half-year report 2020  |Consolidated interim financial statements 2020

Assets and liabilities at the time of sale

Cash and cash equivalents

Other current assets

Other non-current assets

Total assets

Trade accounts payable

Other current liabilities

Other non-current liabilities

Total liabilities

Total net assets

Loss on disposal

Considerations received from the sale1)

Disposal of net assets

Exchange differences recognised in equity

Transaction costs

Total loss on disposal of group companies

Profit from the discontinued operation 01.01.- 28.05.2020

Total loss from the discontinued operation

28.05.2020

242

12'087

10'478

22'807

133

10'551

4'476

15'160

7'647

28.05.2020

-

-7'647

327

-354

-7'674

201

-7'473

1. LAFUMA SA did not receive any payments as part of the sale of OXBOW. The earn-out was not assigned any value. In net assets at the time of the sale of OXBOW current liabilities contained intercompany liabilities to LAFUMA SA. These were converted into a receivable due from Rainbow SAS and a financial asset.

Breakdown of cash outflow due to company sale

The sale of OXBOW resulted in a cash out of CHF 242 cash and cash equivalents. At the same time, short-term financial liabilities to financial institutions of CHF 1'967 were also sold.

Cash flow of OXBOW

Cash flow from operating activities

Cash flow from investing activities

Cash flows from financing activities

Change in cash and cash equivalents

Net loss per share from the discontinued operation

Net loss per registered share in CHF from discontinued operation

Diluted net loss per registered share in CHF from discontinued operation

01.01.- 01.01.- 28.05.2020 30.06.2019

-1'371 545

-246-100

1'434 -668

-183-223

01.01.- 01.01.- 28.05.2020 30.06.2019

-0.85-0.04

-0.85-0.04

27

in CHF 1'000

8. NET LOSS (INCOME) PER SHARE

Net loss (income) attributable to shareholders of CALIDA Holding AG

Number of shares as of the reporting date

Less treasury shares

01.01. -	01.01. -
30.06.2020	30.06.2019

-16'205 3'060

8'257'351 8'255'951

-15'160-15'160

Average number of shares outstanding

Net loss (income) per registered share in CHF Diluted net loss (income) per registered share in CHF

8'242'191 8'240'791

-1.97 0.37

-1.97 0.37

The dilutive effects were calculated based on the average number of call options outstanding and the average share price. The options outstanding with an exercise price below the average share price (determined at daily closing price) are taken into account in determining dilutive effects. The average number of potential registered shares included in the calculation was 0 (01.01. - 30.06.2019: 0).

9. FINANCIAL MANAGEMENT LIQUIDITY OF FINANCIAL LIABILITIES

30 June 2020	Carrying	Contractual
amount	payments	< 1 year	1-5 years	> 5 years
Financial liabilities		42'182	42'182	42'182	-	-
Lease liabilities 3)		59'669	60'933	16'713	36'430	7'790
Trade accounts payable		20'793	20'793	20'793	-	-
Derivative financial instruments
Cash inflows			-21'849	-21'849	-	-
Cash outflows			20'820	20'820	-	-
Net (level 2)		-1'064	-1'029	-1'029	-	-
Other current liabilities 1)		5'131	5'131	5'131	-	-
Refund liabilities		1'418	1'418	1'418	-	-
Accrued expenses and deferred income 2)		14'889	14'889	14'889	-	-

1. Not including liabilities to government authorities and prepayments by customers of CHF 8'500 (30.06.2019: CHF 6'432).
2. Not including accrued personnel expenses and other accruals of CHF 18'263 (30.06.2019: CHF 20'626).
3. Lease liabilities generally have a maximum term of 10 years.

28

Half-year report 2020  |Consolidated interim financial statements 2020

		Carrying	Contractual
30 June 2019	amount	payments	< 1 year	1-5 years	> 5 years
Financial liabilities	31'346	31'346	31'346	-	-
Lease liabilities 3)	70'780	77'243	18'773	44'568	13'902
Trade accounts payable	23'321	23'321	23'321	-	-
Derivative financial instruments
Cash inflows		-49'653	-26'195	-23'458	-
Cash outflows		46'960	24'290	22'670	-
Net (level 2)	-1'686	-2'693	-1'905	-788	-
Other current liabilities 1)	4'866	4'866	4'866	-	-
Refund liabilities	1'035	1'035	1'035	-	-
Accrued expenses and deferred income 2)	12'948	12'948	12'948	-	-

1. Not including liabilities to government authorities and prepayments by customers of CHF 8'500 (30.06.2019: CHF 6'432).
2. Not including accrued personnel expenses and other accruals of CHF 18'263 (30.06.2019: CHF 20'626).
3. Lease liabilities generally have a maximum term of 10 years.

In 2020, the CALIDA GROUP exercised the option to increase the credit facility of CHF 30 million from the existing banking syndicate. This now comprises a revolving credit facility of CHF 70 million (31.12.2019: CHF 40 million) to ­secure long-term financing. CHF 39'536 had been utilised as of 30 June 2020 (31.12.2019: CHF 23'611).

Due to being short term, the carrying amounts of the current financial liabilities are generally equal to their market value (non-discounted amounts). Due to having floating interest rates, the carrying amounts of financial liabilities to banks approximate their market value.

The derivative financial instruments recognised are based solely on forward exchange contracts concluded with banks as counterparties (OTC) for the purpose of foreign exchange hedging and are measured at fair value. The fair value (market value) is based on observable market data, particularly the spot rates and yield curves of the respective currencies (level 2 of the fair value measurement hierarchy).

10. SHAREHOLDERS' EQUITY - GROUP

On 17 April 2020 the Annual General Meeting approved the request of the Board of Directors to carry forward the retained earnings to new account.

11. SUBSEQUENT EVENTS

The consolidated interim financial statements were approved by the Audit & Risk Committee on 27 July 2020 and approved by the Board of Directors the same day.

There were no events between 30 June 2020 and the date on which the consolidated interim financial statements were approved that would necessitate an adjustment to the carrying amounts or that would require disclosure here.

This half-year report may include statements which are based on current assumptions and forecasts made by the Management of CALIDA Holding AG. Various known and unknown risks, uncertainties and other factors can lead to a situation in which the actual results, the financial position, the ­development or the performance of the company deviate significantly from the estimations given here. CALIDA Holding AG does not assume any

obligation­ to carry such future-orientated statements further and to adapt them to future events or developments.

The half-year report of CALIDA Holding AG is published in German and English. In the case of any differing interpretations, the German text is valid.

in CHF 1'000

MILLET  ITriology © Matt Georges

30

Half-year report 2020  |Organisation and key dates

Organisation and key dates

BOARD OF DIRECTORS

Hans-Kristian Hoejsgaard, (*1958, DK)

Chairman, Member since 2014 2)

Marco Gadola, (*1963, CH/FR)

Vice Chairman, Member sinec 2011 2)

Nathalie Gaveau, (*1975, FR)

Member since 2018 3)

Gregor Greber, (*1967, CH)

Member since 2020 1)

Erich Kellenberger, (*1948, CH)

Member since 2020 3)

Dr. Lukas Morscher, (*1963, CH)

Member since 2019 1)

Stefan Portmann, (*1967, CH)

Member since 2016 3)

1. Audit & Risk Committee
2. Nomination & Compensation Committee
3. Strategic Committee

None of the members of the Board of Directors have been represented within Executive Management of CALIDA Holding AG or any of its subsidiaries. With the exception of the disclosed mandates, they especially hold no official roles or political offices. The members of the Board of Directors are appointed individually for one-year tenure which lasts until the following Annual General Meeting.

EXECUTIVE MANAGEMENT

Reiner Pichler, (*1962, CH/DE)

CEO, Chairman since 2016

Daniel Gemperle, (*1959, CH)

COO, Member since 2011

Sacha D. Gerber, (*1975, CH)

CFO, Member since 2018

Stefan Mues, (*1974, DE)

CDO, Member since 2019

Manuela Ottiger, (*1971, CH)

CHRO, Member since 2014

INFORMATION POLICY

CALIDA Holding AG updates its stakeholders on the business development in annual and half-year reports. Shareholders recorded in the Company's share register can request a copy of the half-year report dated 30 June 2020. The electronic version of the half-year report is available on our website (see below) from 29 July 2020.

Annual reports, half-year reports, ad hoc news, press releases, key dates, etc. can all be found online in the "Investors" section of www.calidagroup.com. Interested parties can also sign up to receive ad hoc news electronically. Printed documents and brochures can be ordered online at www.calidagroup.com, by e-mail from [e-mail], or from CALIDA Holding AG, Investor Relations, P.O. Box, 6210 Sursee, [phone]. The Company announces pricesensi- tive facts in accordance with regulations of the SIX Swiss Exchange.

STATUTORY AUDITOR

Ernst & Young AG, Zürich

KEY DATES		CONTACT
Results financial year 2020		CALIDA Holding AG
March 2021		Investor Relations
		P.O. Box
Annual General Meeting 2021
	CH-6210 Sursee
15 April 2021
	Phone [phone]
Half-year report 2021		Fax [phone]
End of July/beginning of August 2021		[e-mail]

CALIDA  IPeople

CALIDA HOLDING AG

Bahnstrasse

CH-6208 Oberkirch Phone [phone] Fax [phone] www.calidagroup.com

Postal address Investor Relations

P.O. Box, CH-6210 Sursee Phone [phone] Fax [phone] [e-mail]

neutral 01-20-996748 Printed Matter myclimate.org