F I L A Fabbrica Italiana Lapis ed Affini S p A : Investor Day 2023 - Marketing and Communication

INVESTOR DAY

Marketing &

Communication

PIERO FROVA	NICOLETTA MARSI
Chief Marketing Officer	Chief Marketing Officer
School & Office	Fine Art

Market Scenario

Very fragmented market

• School & Office: 10 players above 300mln euro, and approximately than 100 players below 300mln euro.
• Fine Art: 2 players above 50mln euro and about 30 players below 50 mln euro.

Market characterised by historic brands with strong, local roots and established brand awareness and consumer recognition.

The market is characterised by low product differentiation, but with substantial quality differences.

Significant and growing presence of private label, especially in markets with a strong relevance of modern distribution chains (North America, France, UK, Germany).

INVESTOR DAY

With the exception of the COVID impact the market is stable with respect to major exogenous factors and significantly linked to the demographic dynamics of individual countries (birth rate and growth in the average age of the population).

Capillary distribution throughout the territory through different channels.

The growth of ecommerce has changed the balance between distribution channels, significantly increasing competition (the number of players that can participate on-line is greater than the number that can be physically displayed within brick & mortar stores).

High barriers to entry in terms of production, and low in terms of sourcing.

Increasingly restrictive safety regulations and certifications.

INVESTOR DAY

Market size

School		~10 bn
and Office

Fine Art		~1 bn

Global market size ex works ¤.

Source: Estimates carried out by management based on internal and third-party data sources.

INVESTOR DAY

Extensive

Product Range

and Brand Identity

F.I.L.A. operates worldwide through a wide range of local and global brands, partly developed internally and partly acquired over the years as the expansion strategy moved forward.

The range of products is primarily destined for use in schools, art schools, hobbyists and artists. The company, however, also caters for the office and industry segments, with a few, selected products.

The Group considers its brand portfolio to be its strategic asset.

As shown by a number of the Group's key brands, when properly developed, the Group believes that the brand life can exist indefinitely. Intangible assets are a key component of the market value of "creative products", reflecting the power of brands built up over many years.

INVESTOR DAY

The Group has an ongoing commitment to investments in marketing designed to strengthen the recognition and reputation of iconic and distinctive brands in the key markets, as well as launching and developing them in new high-potential geographical regions.

Brand image is a critical factor in a consumer's choice of "creative products". Consumers are willing to pay higher prices for brands they like and trust, and the strength of these brands allows FILA Group to build a premium positioning, improve the price mix and therefore generate higher returns in the mid- to long-term.

Giotto: 1925

La Pochette: 1947