Geox S p A : Group - 1H21 Results

GEOX GROUP - 1H21 RESULTS -

JULY 29, 2021

1H21 RESULTS| EXECUTIVE SUMMARY

GQ FRANCE, 7 MAY 2021

• BEFORE IMPAIRMENT AND RESTRUCTURING CHARGES **ANTE IFRS 16 AND AFTER FAIR VALUE ADJ OF DERIVATIVES

1H21 RESULTS

• 1H21 SALES AT 264.0 MLN€: +8.4% (+10.1% AT COSTANT FOREX) DRIVEN BY 2Q21 PERFORMANCE (+90.5% VS 2Q20)
• GROSS MARGIN AT 47.9% (+690 BPS VS 1H20)
• EBIT ADJ* AT -29.5 MLN€ (-70.6 MLN€ IN 1H20) SUPPORTED BY GROSS MARGIN IMPROVEMENT AND COST REDUCTION (-8.5%)
• NET WORKING CAPITAL UNDER CONTROL AT 169 MLN€, WELL BELOW 1H20 (223 MLN€) AND 1H19 LEVEL (235 MLN€)
• NET FINANCIALPOSITION adj** AT THE END OF JUNE AT -108.2 MLN€ (-99.8 MLN€ IN DECEMBER 2020) WITH A CASH GENERATION OF 12
  MLN€ IN MAY AND JUNE 2021

CURRENT TRADING

• DOS NETWORK UPDATE: 100% OPEN FROM JULY 1
• CURRENT TRADING: LFL DOS (WEEK 29) +17% YTD

LFL IN JULY +23% VS JULY 2020 AND -6% VS JULY 2019 WITH A RELEVANT IMPROVEMENT IN MARKDOWN

2

GEOX RESTRUCTURING PLAN - MISSION ACCOMPLISHED -

NETWORK RATIONALIZATION

CANADA

USA

EUROPE

UK

GERMANY

JAPAN

SERBIA

TOTAL GEOX STORES

1H19

987

-18%

1H21810

RESTRUCTURING PROCESS (NoI):

• EXIT FROM 10 DOS
• MANTEINANCE OF 20 DOS WITH A RELEVANT REDUCTION OF RENT

RESTRUCTURING PROCESS WITH EXIT FROM PHISICAL RETAIL (2 DOS)

CLOUSURE OF THE RETAIL BRANCHES (FRANCE, GERMANY, UK, SPAIN, AUSTRIA) OF THE ITALIAN COMPANY MOVING THE BUSINESS INTO THE COUNTRIES' SUBSIDIARIES FOR A FULL OMNICHANNEL APPROACH

OUT-OF-COURT RESTRUCTURING PROCESS WITH THE EXIT FROM 3 DOS (ON A TOTAL OF 6 DOS)

OUT-OF-COURT RESTRUCTURING PROCESS WITH THE EXIT FROM 11 DOS (ON A TOTAL OF 27 DOS)

LIQUIDATION OF THE SUBSIDIARY WITH THE EXIT FROM PHISICAL RETAIL (7 DOS) AND THE TRANSFER OF THE BUSINESS TO A DISTRIBUTOR

CLOUSURE OF THE SERBIAN PLANT (AUGUST 2021)

EBIT 2019 = -5.6 MLN€

EBIT 2019 = -4.7 MLN€

FWC 2019 (14 DOS) = -1.3 MLN€

EBIT 2019 = -2.7 MLN€

3

GEOX SHOPS NETWORK| RATIONALIZATION PROCESS

GEOX SHOPS NETWORK - EVOLUTION BY TYPE -

							1H21 VS 1H2O			1H21 VS 1H19
						1H21 VS 1H2O	(PERIMETER EFFECT		1H21 VS 1H19	(PERIMETER EFFECT
	30-Jun-21	31-Dec-20	30-Jun-20	30-Jun-19		(DELTA STORES)	ON SALES, MLN€)		(DELTA STORES)	ON SALES, MLN€)
DOS	376	410	450	448		-74	-5.2		-72	-20.5
FRANCHISING	311	322	354	406		-43	-4.3		-95	-9.7
UNDER DISTRIBUTION
AGREEMENTS	123	135	132	133		-9			-10
TOTAL	810	867	936	987		-126	-9.5		-177	-30.2

Barcellona, Paseo

GEOX SHOPS NETWORK - EVOLUTION BY AREA -		1H21 - EVOLUTION BY AREA -

	30-Jun-21		31-Dec-20		30-Jun-20
	GEOX SHOPS	of which DOS		GEOX SHOPS	of which DOS		GEOX SHOPS	of which DOS
ITALY	215	134		226	139		258	150
EUROPE	218	124		246	142		263	156
NORTH AMERICA	22	22		24	24		32	32
ROW	355	96		371	105		383	112
TOTAL	810	376		867	410		936	450

	NET OPENINGS	OPENINGS	CLOSURES
ITALY	-11	2	-13
EUROPE	-28	-	-28
NORTH AMERICA	-2	-	-2
ROW	-16	12	-28
TOTAL	-57	14	-71

4

COVID-19IMPACTS UPDATE ON DOS| 100% OF THE DOS NETWORK OPEN FROM JULY 1ST

OPERATING STATUS BY COUNTRY IN 1H21, 1H20 AND LFL

		% DOS CLOSED DURING 1Q21*	% DOS CLOSED DURING 2Q21*
	ITALY	42%	14%
	EUROPE, of which	53%	23%
	FRANCE	50%	55%
	GERMANY	82%	45%
	AUSTRIA	42%	13%
	UK	100%	0%
	SPAIN	38%	0%
	BENELUX	10%	0%
	SWITZERLAND	51%	0%
	NETHERLANDS	75%	23%
	CANADA/NA	41%	46%
	ROW, of which	6%	3%
	CHINA	0%	0%
	RUSSIA	0%	0%
	POLAND	52%	31%
	HUNGARY	31%	8%
	TOTAL	34%	20%

% DOS CLOSED DURING 1H21*		% DOS CLOSED DURING 1H20*			LFL (1H21 VS 1H20)
28%		41%			20%
38%		32%			5%
52%		38%		12%
63%		29%			-20%
28%		27%		-14%
50%		55%		18%
19%		44%		17%
5%		31%		28%
25%		33%		11%
49%		28%		-31%
43%		46%		11%
5%		17%			46%
0%		3%		26%
0%		44%		109%
43%		31%		7%
19%		34%		13%
28%		35%		15%

STRONG PERFORMANCE IN EUROPE (MAINLY FRANCE) ALSO CONSIDERING THE STRICTER LOCKDOWN MEASURES IN 1H21 VS 1H20

MAY, 19

FRANCE (55 DOS)

RE-OPENINGS CALENDAR

UPDATE FROM 1Q21

RELEASE -

MAY, 22

ITALY (77 DOS

CLOSED IN WE)

JUNE, 14

GERMANY (20 DOS)

AS OF TODAY 100% OF THE DOS

NETWORK IS OPENA

T IN 1Q20

JUNE, 30

CANADA (8 DOS)

5

*NUMBER OF DOS CLOSED/OPEN DIVIDED BY TOTAL NUMEBER OF DOS ON DAILY BASIS; STARTING FROM NOVEMBER 2020, SOME DOS HAVE BEEN TEMPORARILY CLOSED ONLY DURING THE WEEKEND