November 2011 Roadshow Presentation

Transcription

1 November 2011 Roadshow Presentation

2 DISCLAIMER This presentation has been prepared by YOOX S.p.A. for information purposes only and for use in presentations of the Group s results and strategies. For further details on the YOOX Group, reference should be made to publicly available information. Statements contained in this presentation, particularly the ones regarding any possible or assumed future performance of the Group, are or may be forward looking statements, and in this respect, may involve some risks and uncertainties. Any reference to past performance of the YOOX Group shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms. SLIDE 2

3 TABLE OF CONTENTS INTRODUCTION TO YOOX GROUP LATEST BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS FINANCIAL ANALYSIS STRATEGIC GUIDELINES APPENDIX SLIDE 3

4 YOOX GROUP, ESTABLISHED IN 2000 The Global Internet Retailing Partner for the Leading Fashion & Design Brands SLIDE 4

5 TWO DIFFERENTIATED AND SYNERGIC BUSINESS LINES Multi-Brand: building long-standing relationships with Commercial Partners Mono-Brand: leveraging the know-how together with Strategic Partners Broad offering of off-season premium apparel and accessories at attractive prices, exclusive and special collections, vintage, home & design products Launched in 2000 Exclusive official Online Flagship Stores of leading fashion brands In-season premium apparel and accessories Partnership model: mostly 5-year contracts 29 Online Flagship Stores, including: In-season premium apparel and accessories from selected brands Shop-in-shop model Launched in and more to.com SLIDE 5

6 CUSTOMER S SENSITIVITIES STRATEGIC COVERAGE OF THE ONLINE FASHION MARKET PRODUCT LIFE CYCLE In-season -> Off-season -> Clearance Brand & Product Brand Lovers + Brand & Product Assortment Product Assortment & Price Fashion Savvy RETAIL PRICE Price Bargain Hunters Semi-annual sample sale on yoox.com - SLIDE 6

7 STRONG TRACK RECORD OF GROWTH FUELLED BY BUSINESS INNOVATION Multi-brand Net Revenues ( m) Mono-brand Net Revenues ( m) Launch of yoox.com International expansion Launch of Online Stores Powered by YOOX Group Broadening of multi-brand offering Note: YOOX Group Annual Reports, Italian GAAP , IFRS results SLIDE 7

8 OUR FASHION WORLD IS DRIVEN BY NUMBERS In the first nine months of million unique visitors per month 1,481 thousand orders 1 order processed every 16 seconds Over 99% of deliveries on time million newsletters sent to our registered users 2 40 thousand websites reached by our web marketing campaigns 2 1. Company elaborations based on shipping partners data 2. Refer to Multi-brand business line SLIDE 8

9 GLOBAL OPERATIONS Headquarters in Italy 5 Logistics Centres strategically located, guaranteeing best-in-class service to all major fashion markets Italy, US, Japan, China, Hong Kong 99% of deliveries on time 1 Delivery to over 100 countries 7 Local Offices Italy, US, Japan, France, Spain, China, Hong Kong 4 Digital Production Facilities Italy, US, Japan, China 8 Customer Care Centres 10 languages 5 currencies 1. Company elaborations based on shipping partners data. Refers to 9M2011 SLIDE 9

10 UNIQUE SHOPPING EXPERIENCE COMBINED WITH BEST IN CLASS CUSTOMER SERVICE Innovative and Entertaining Shopping Experience Best in Class Customer Service Exclusive Shopping directly from the Catwalk Loyalty Program Proximity to the Customer in All Key Geographies Safe Payment and Easy Returns Fast and Reliable Delivery iphone, ipad & Android yoox.com yoox.com Mobile, thecorner.com Mobile and many Online Stores Dedicated Customer Care Distinctive Packaging Thanks to a balanced mix of creativity, technical competencies and constant focus on the customer SLIDE 10

11 TABLE OF CONTENTS INTRODUCTION TO YOOX GROUP LATEST BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS FINANCIAL ANALYSIS STRATEGIC GUIDELINES APPENDIX SLIDE 11

12 LATEST BUSINESS DEVELOPMENTS Multi-brand Localised version of yoox.com launched in South Korea in November 2011 Localised versions of thecorner.com launched in China and Russia in September and October 2011 respectively thecorner.com - new major luxury goods brands added (e.g., Dolce & Gabbana, Ferragamo, Marc Jacobs, Paul Smith, Sergio Rossi) Mono-brand Contract signed with Barbara Bui S.A. for the launch of barbarabui.com in Europe, US and Japan in 1Q2012 Contract signed with TRS Evolution S.p.A. for the launch of trussardi.com in Europe, US and Japan in December 2011 armani.com launched in Europe, US, Japan and China in October 2011 bikkembergs.com extended to the US in October 2011 moncler.com launched in Europe and the US in September 2011 Z Zegna line added to zegna.com in September 2011 Technological Innovations thecorner.com release 4.0 launched (improved usability, enhanced accessibility for multimedia contents, new architecture and design) yoox.com release 9.5 and yoox.com native application for Android launched thecorner.com optimised for ipad and thecorner.com web app launched for iphone and Android with an integrated fast check-out Operations New highly-automated global operations and distribution platform completed ahead of schedule in August 2011 and fully operational since end of September 2011 SLIDE 12

13 OUR MONO-BRAND PARTNERS BRAND LINES BRAND LINES barbarabui.com 2012 robertocavalli.com since 2011 trussardi.com jilsander.com since 2011 armani.com dsquared2.com 2009 moncler.com dandgstore.com dolcegabbanastore.com bikkembergs.com 2011 bally.com moschino.com brunellocucinelli.com emiliopucci.com y-3store.com zegna.com maisonmartinmargiela.com since 2011 energie.it costumenational.com misssixty.com valentino.com since zeishouse.com stoneisland.com albertaferretti.com 2010 cpcompany.com napapijri.com giuseppezanottidesign.com diesel.com emporioarmani.com since coccinelle.com marni.com 2006 SLIDE 13

14 NINE MONTHS ENDED SEPTEMBER 30, RESULTS HIGHLIGHTS Key Performance Indicators 9.4m monthly unique visitors (vs. 8.1m in 9M2010) 1,481 thousand orders (vs. 1,115 thousand in 9M2010) Average Order Value of 174 (vs. 174 in 9M2010) 746 thousand active customers (vs. 576 thousand in 9M2010) Key Financials Net Revenues at 204.4m (vs m in 9M2010) Increased contribution from international markets, now accounting for 79.2% 1 of Net Revenues (vs. 76.4% 1 in 9M2010) North America no. 1 market in 3Q2011 Demand from Italy continues to be strong EBITDA Excluding Incentive Plan Costs at 15.0m (vs. 12.5m in 9M2010) Net Income at 3.6m (vs. 4.0m in 9M2010) Net Cash at 0.6m (vs. 22.8m of Net Cash at Dec. 2010) 1. Excludes Not Country Related SLIDE 14

15 TABLE OF CONTENTS INTRODUCTION TO YOOX GROUP LATEST BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS FINANCIAL ANALYSIS STRATEGIC GUIDELINES APPENDIX SLIDE 15

16 M10 9M GAP 9M10 9M GAP 9M10 9M11 KEY PERFORMANCE INDICATORS Monthly Unique Visitors (m)¹ # Orders ( 000) - Group M2010 9M Trend in multi-brand visitors reflects 1) optimised web marketing investments towards higher conversion rate channels in order to attract new qualified customers; 2) strengthened retention rate thanks to CRM activities on existing customers. As a result, web marketing costs over multi-brand net revenues decreased versus 9M M2010 9M2011 1,523 1,481 1,148 1,115 Multi-brand Mono-brand Average Order Value ( ) - Group Active Customers 2 ( 000) Group M2010 9M M2010 9M At constant exchange rates, AOV at 177 in 9M GAP 9M10 9M11 1. Source: HBX 1/1/09-19/03/09 and SiteCatalyst since19/03/09 for yoox.com; Google Analytics for thecorner.com and the Online Stores 2. Active Customer is defined as a customer who placed at least one order in the 12 preceding months 3. Include Active Customers of the mono-brand Online Stores SLIDE 16

17 NET REVENUES BREAKDOWN BY BUSINESS LINE AND GEOGRAPHY Net Revenues by Business Line M2010 9M2011 Y-o-Y Growth 80.5% 40.8% 35.6% 214.3m 49.7% 204.4m 152.2m 150.8m 31.8% 31.4% M2010 9M2011 Multi-brand Mono-brand 18.4% 81.6% 23.6% 76.4% 23.0% 77.0% 25.4% 74.6% Net Revenues by Geography Italy M2010 9M2011 Rest of Europe North America Japan 5.8% 2.3% 26.1% 16.9% 6.3% 2.9% 23.0% 19.7% 6.4% 2.2% 23.3% 19.4% 6.7% 3.6% 20.4% 19.7% 2 RoW + NCR % 48.1% 48.7% 49.6% 1. Not Country Related 2. At constant exchange rates, North America contributed 20.8% to the Group's Net Revenues in 9M2011, becoming the Group s no. 1 market SLIDE 17

18 YOOX GROUP PROFIT & LOSS ( m) M2010 9M2011 Net Revenues growth 50.0% 40.8% 41.2% 35.6% COGS (91.9) (129.9) (93.6) (130.5) Gross Profit % of Net Revenues 39.6% 39.4% 37.9% 36.2% Fulfillment (15.5) (21.5) (15.5) (22.3) % of Net Revenues 10.2% 10.1% 10.3% 10.9% Sales & Marketing (16.7) (24.7) (17.8) (22.1) % of Net Revenues 11.0% 11.5% 11.8% 10.8% EBITDA Pre Corporate Costs % of Net Revenues 18.4% 17.8% 15.8% 14.4% General & Administrative (12.1) (18.9) (13.6) (16.9) % of Net Revenues 8.0% 8.8% 9.0% 8.3% Other Income/ (Expenses) (1.0) (0.5) (0.4) (0.8) % of Net Revenues 0.6% 0.2% 0.3% 0.4% EBITDA % of Net Revenues 9.9% 8.8% 6.5% 5.8% Depreciation & Amortisation (2.2) (3.7) (2.3) (4.9) % of Net Revenues 1.4% 1.7% 1.6% 2.4% Operating Profit % of Net Revenues 5.8% 7.0% 5.0% 3.4% Net Financial Income / (Expenses) (1.5) (0.1) (0.2) (0.4) Profit Before Tax % of Net Revenues 4.8% 7.0% 4.8% 3.2% Taxes (3.3) (5.8) (3.2) (2.9) Net Income % of Net Revenues 2.7% 4.3% 2.7% 1.8% EBITDA Excluding Incentive Plan Costs % of Net Revenues 10.9% 10.5% 8.3% 7.3% Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation EBITDA Excluding Incentive Plan Costs calculated adding back to EBITDA the costs associated with incentive plans in each period SLIDE 18

19 EBITDA ANALYSIS BY BUSINESS LINE EBITDA Evolution m 18.8m 9M m 9M m % of Net Revenues 9.9% 8.8% 23.7m Multi-brand EBITDA Pre Corporate Costs m 9M m 9M m # Online Stores Open Mono-brand EBITDA Pre Corporate Costs 9M 9M m # Online Stores Open m 6.5% 5.8% (13.1)m Corporate Costs 1 (19.4)m 9M 2010 (14.0)m 9M 2011 (17.7)m 4.4m 5.6m % of Multibrand Net Revenues GAP 9M2010 9M % 17.8% 15.8% 13.4% % of Monobrand Net Revenues % of Group Net Revenues GAP 9M2010 9M GAP 9M2010 9M % 17.9% 16.0% 17.3% 8.6% 9.1% 9.3% 8.6% Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A); 1. Corporate Costs include General & Administrative costs (net of D&A) and Other Income/ Expenses; Corporate Costs Excl. Incentive Plan Costs over Group Net Revenues down to 7.9% in FY2010 from 8.0% in FY2009 SLIDE 19

20 FROM EBITDA TO NET INCOME 9M m (3.1)m 11.8m 7.0m (4.9)m (0.4)m (2.9)m 3.6m EBITDA Excl. Incentive Plan Costs % of Net Revenues Incentive Plan Costs EBITDA D&A EBIT Net Financial Income / (Expenses) 9M2010 Taxes Net Income 7.3% 5.8% 3.4% 1.8% 12.5m (2.6)m 9.8m (2.3)m 7.5m (0.2)m (3.2)m 4.0m EBITDA Excl. Incentive Plan Costs Incentive Plan Costs EBITDA D&A EBIT Net Financial Income / (Expenses) Taxes Net Income % of Net Revenues 8.3% 6.5% 5.0% 2.7% SLIDE 20

21 YOOX GROUP SUMMARY BALANCE SHEET M2010 9M2011 ( m) Net Working Capital Non Current Assets Non Current Liabilities (excl. financial liabilities) (0.6) (0.4) (0.6) (0.5) Total Net Financial Debt / (Net Cash) (34.0) (22.8) (19.9) (0.6) Shareholders' Equity Total SLIDE 21

22 NET WORKING CAPITAL EVOLUTION Net Working Capital ( m) M2010 9M2011 Inventories Trade Receivables Trade Payables (27.3) (48.9) (39.0) (56.9) Other Receivables / (Payables) (16.8) (12.0) (8.0) (4.3) Net Working Capital as % of Net Revenues 6.4% 11.6% 13.5% 15.0% 2 2 Inventory Level Evolution 43.7% 46.6% 45.6% 33.7% 35.6% 34.0% 2 9M2010 FY2010 9M2011 Inventories as % of Multi-brand Net Revenues Inventories as % of Group Net Revenues 1. FY2009 Net Working Capital impacted by extraordinary items related to IPO and stock option exercise: adjusted Net Working Capital amounts to 16.9m, corresponding to 11.1% of Net Revenues 2. Percentages calculated on LTM Net Revenues 2 SLIDE 22

23 YOOX GROUP NET FINANCIAL POSITION EVOLUTION Net Financial Position ( m) M2010 9M2011 Cash and Cash Equivalents (35.0) (24.2) (11.1) (12.5) Other Current Financial Assets (0.0) (5.1) (10.2) - Current Financial Assets (35.0) (29.3) (21.3) (12.5) Current Financial Liabilities Long Term Financial Liabilities Net Financial Debt / (Net Cash) (34.0) (22.8) (19.9) (0.6) Medium/longterm line of credit mainly used to finance the new highlyautomated global operations and distribution platform Net Financial Position Evolution (1.9)m (0.6)m (22.8)m 3.6m (14.9)m (0.7)m (16.3)m 4.9m 3.1m FY2010 Net Cash Net Income D&A Incentive Plan Costs Change in Inventories Change in 1 2 Receivables/Payables Investments Other 9M2011 Net Cash 1. Includes Trade Receivables, Trade Payables, Other Receivables / (Payables) 2. Mainly refers to deferred tax assets, the impact of exchange rates resulting from the consolidation of foreign subsidiaries and the share buy-back programme SLIDE 23

24 YOOX GROUP CASH FLOW STATEMENT ( m) Cash Flow Statement M2010 9M2011 Cash and Cash Equivalents at Beginning of Period Cash Flow from Operations 18.4 (0.5) (9.0) (4.2) Cash Flow from Investment Activities (2.1) (11.5) (5.1) (16.3) Sub Total 16.4 (12.0) (14.1) (20.5) Cash Flow from Financing Activities (9.8) 8.9 Cash Flow 26.0 (10.8) (23.9) (11.6) Cash and Cash Equivalents at End of Period Capital Expenditure M2010 9M m 12.3m 5.6m 18.4m Increase in capital expenditure mainly related to higher investments in technology developments and automation of global operations and distribution platform % of Net Revenues 2.2% 5.8% 3.7% 9.0% SLIDE 24

25 TABLE OF CONTENTS INTRODUCTION TO YOOX GROUP LATEST BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS FINANCIAL ANALYSIS STRATEGIC GUIDELINES APPENDIX SLIDE 25

26 OUR VISION The Global Internet Retailing Partner for the Leading Fashion & Design Brands SLIDE 26

27 OUR TARGETS Grow to 50 online stores by 2015, powering the world s leading fashion and design players Increase the proportion of in-season offering within the product assortment mix Nearly half of the Group s Net Revenues from in-season by 2015 Higher Average Order Value (AOV) Further expand globally, with strong focus on China to leverage the first-mover advantage Continue to develop state-of-the-art logistics and technology platforms Translate strong growth into increased profitability and cash flow generation SLIDE 27

28 GROW TO 50 ONLINE STORES BY 2015, POWERING THE WORLD S LEADING FASHION AND DESIGN PLAYERS By 2015 YOOX Group will manage 50 online stores, including... Multi-brand Mono-brand What the Growth Strategy will rely on Increasing the proportion of in-season offering within the product assortment mix Increasing the assortment depth of a few selected existing categories New categories within fashion and design Strengthening and expanding relationships with existing commercial partners New commercial partnerships, by leveraging the Group s global platform Maintaining a strong pipeline of new openings approx. 5-6 new brands per year Focus on China with approx. 3-4 launches per year (either as extensions of existing partnerships or as new partnerships) Growth of the existing Online Stores (by further increasing the brands portion of e-commerce sales) Implementation of a selective approach in the identification and development of new strategic partnerships and in the renewal of existing ones SLIDE 28

29 FURTHER GLOBAL EXPANSION A Global Reach with Local Expertise MARKETS OFFER ACTIONS OTHER Countries served with global approach & standard solutions Over 100 countries served LOCALISATION STRATEGIC CORE Local language sites Local payment systems Dedicated marketing & customer care Local presence (offices, customer care centres) Local decision-making Greater autonomy Local language sites Local payment systems Local currency Local buying New launches (Korea and other Far East countries, etc) US no. 1 market by 2011 The undisputable leader in Italy China one of top 3 markets in 2015 SLIDE 29

30 FURTHER GLOBAL EXPANSION - CHINA First Mover in the World s Fastest Growing Market ALREADY THE WORLD S BIGGEST ONLINE POPULATION ALREADY THE WORLD S SECOND LARGEST MARKET 3 ( 300 M INTERNET USERS IN ) NO. OF ONLINE BUYERS EXPECTED TO ALMOST REACH TOTAL CURRENT US POPULATION IN 2015 ( 300 M) 2 POSITIONED FOR LONG-TERM GROWTH AT THE CONVERGENCE THE WORLD S YOUNGEST MARKET WITH 80% OF CONSUMERS UNDER 45 4 OF TWO MEGA TRENDS m internet users in China in Source: Online Retail Forecast, 2010 to 2015, Asia Pacific, Forrester Research Inc., 15 October m internet buyers in China in 2015 and 310m of US citizens in Source: Online Retail Forecast, 2010 to 2015, Asia Pacific, Forrester Research Inc., 15 October 2010 and Online Retail Forecast, 2010 to 2015, US, Forrester Research Inc., 18 January Source: Li & Fung Research Centre, China Distribution & Trading, Issue 66, June 2010, based on World Luxury Association (WLA) 4. Source: The Coming of Age, China s new class of wealthy consumers, Insights China by Mckinsey&Company SLIDE 30

31 FURTHER GLOBAL EXPANSION - CHINA, THE STRATEGIC PLAN MISSION: The official Internet retailing partner in China for leading fashion brands POSITIONING: Start with in-season offering, excellent customer service and a superior shopping experience OBJECTIVE: Support the Group s long-term growth Extend existing partnerships and develop new agreements with leading fashion houses by powering their Online Stores in a market with high growth potential Strong pipeline of new openings Provides our mono-brand partners with a double shopping-window to show and sell the same products available on their Online Stores and in our local warehouse In addition to the Online Stores brands, hosts an accurate selection of cutting-edge designers appealing to Chinese customers Sept Helps our partners minimise risk of local end-of-season inventory through a reliable channel that doesn t dilute their brands image 2012 emporioarmani.cn (Nov. 2010) and many others SLIDE 31

32 A STATE-OF-THE-ART AUTOMATED GLOBAL DISTRIBUTION PLATFORM Service the Group s global growth Investment considerations Rationale Improve customer service Increase operating efficiencies New automated warehouse will handle YOOX s growth through 2016 Benefits No need to move to new premises, thus avoiding relocation costs Substantial improvement in the Group s profitability Increase in order accuracy thanks to the use of RFid technology Maximum investment of approximately 20m capex Half in FY2011 (committed) Half over subsequent 5 years Financing Timing Majority of investment will be financed through a line of credit with a major international financial institution BSL Geodis - part of the SNCF Group and one of the world's leading providers of logistics services in Europe - since January 2011 SLIDE 32

33 TECHNOLOGY PLATFORM A PROVEN PROPRIETARY TECHNOLOGY PLATFORM TAILORED TO ONLINE FASHION Scalable & Reliable Multi-tenant platform capable of accommodating well over 50 online stores by 2015 Service-oriented architecture Cloud Technology (initially for multi-channel and digital asset management) Flexible with Depth & Speed Capable of accommodating Multi-brand and Mono-brand formats Integration with best-of-breed technology solutions End-to-end tools and solutions fully integrated to support logistics and customer care processes Multi-Market Easy to localise & Far East ready (language, payments & logistics) Consolidated expertise, technology and solutions to enable fast entry into new geographical markets Innovation & Ability to Capture New Opportunities Multi-channel enabled - desktop, mobile devices (iphone, Android, Keitai, Blackberry, etc) and tablets (ipad) Leverage product presentation solutions, such as videos, to increase customer engagement and conversion Internal research and scouting of early-stage technology solutions to enable fast innovation Customer- Oriented Investment in CRM solutions to increase retention, customer engagement and cross-selling opportunities Leverage a vast amount of data and Business Intelligence to improve interaction with our customers SLIDE 33

34 TRANSLATE GROWTH INTO INCREASED PROFITABILITY AND CASH FLOW GENERATION Leverage economies of scale thanks to increasing critical mass, supported by a scalable business model Exploit synergies between Mono-brand and Multi-brand business lines Improve operational efficiencies Increase in Operating Cash Flow Generation Manage working capital effectively, leveraging on Increasing contribution from in-season offering (mainly on consignment) Reduction in production lead times SLIDE 34

35 HOW CAN WE REACH OUR GOALS? By Continuing to Invest in THE CUSTOMER Best & innovative shopping experience (excellent customer service & high quality product presentation) Customer proximity through multiple channels & geographic localisation Strengthening retention rate with increased focus on existing customers (CRM) Forging strategic alliances with top fashion & design publishers to target dedicated followers of fashion New creative marketing ideas in sync with evolving scenarios (social networks) DREAM TEAM Fostering culture of innovation and quality Promoting growth of young talents and YOOX School Strengthening top management team Focusing on strategic objectives and results (incentive plans) GLOBAL TECH. & LOGISTICS PLATFORM Logistics State-of-the-art, highly-automated distribution centre with global capabilities Technology Scalable, flexible, customer-oriented SLIDE 35

36 TABLE OF CONTENTS INTRODUCTION TO YOOX GROUP LATEST BUSINESS DEVELOPMENTS AND RESULTS HIGHLIGHTS FINANCIAL ANALYSIS STRATEGIC GUIDELINES APPENDIX SLIDE 36

37 YOOX GROUP PROFIT & LOSS - FOCUS ON THIRD QUARTER RESULTS ( m) 3Q2010 3Q2011 Net Revenues growth 41.0% 35.0% COGS (34.2) (48.3) Gross Profit % of Net Revenues 36.9% 34.0% Fulfillment (5.5) (8.0) % of Net Revenues 10.1% 10.9% Sales & Marketing (6.4) (7.5) % of Net Revenues 11.8% 10.2% EBITDA Pre Corporate Costs % of Net Revenues 15.1% 12.9% General & Administrative (5.0) (4.9) % of Net Revenues 9.2% 6.7% Other Income/ (Expenses) (0.2) (0.6) % of Net Revenues 0.3% 0.8% EBITDA % of Net Revenues 5.5% 5.4% Depreciation & Amortisation (0.8) (2.1) % of Net Revenues 1.5% 2.9% Operating Profit % of Net Revenues 4.0% 2.5% Net Financial Income / (Expenses) (0.5) (0.2) Profit Before Tax % of Net Revenues 3.0% 2.2% Taxes (1.0) (0.9) Net Income % of Net Revenues 1.3% 1.0% Gross profit impacted by: 1) greater contribution to yoox.com total sales by 2011 Spring/Summer collection, triggered by the 4th warmest September since , when the Spring/Summer collection is marked by stronger promotional activities 2) unfavourable Euro/US Dollar exchange rate EBITDA Excluding Incentive Plan Costs % of Net Revenues 8.0% 6.7% Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro In this presentation, third quarter figures are calculated as the difference between the first nine months results and the first-half results of the same year Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation EBITDA Excluding Incentive Plan Costs calculated adding back to EBITDA the costs associated with incentive plans in each period 1. Source: September 2011 Global Analysis by the National Climatic Data Center (US Department of Commerce) SLIDE 37

38 NET REVENUES BREAKDOWN BY BUSINESS LINE AND GEOGRAPHY - THIRD QUARTER Net Revenues by Business Line Net Revenues by Geography 3Q2010 3Q2011 3Q2010 3Q2011 Y-o-Y Growth 54.2m 12.0m +54.8% +29.4% +35.0% 73.2m 18.6m 6.5% 2.8% 19.1% 21.9% North America no. 1 market 7.3% 3.7% 20.4% % 42.2m 54.6m 49.7% 49.8% 3Q10 3Q11 Multi-brand Mono-brand 22.1% 25.4% Italy Rest of Europe 77.9% 74.6% North America Japan RoW + NCR 2 1. At constant exchange rates, North America contributed 21.8% to the Group s Net Revenues in 3Q Not Country Related SLIDE 38

39 YOOX GROUP PROFIT & LOSS EXCLUDING INCENTIVE PLAN COSTS ( m) 9M M2011 3Q2010 3Q2011 Net Revenues growth 50.0% 40.8% 41.2% 35.6% 35.0% COGS (91.9) (129.9) (93.6) (130.5) (34.2) (48.3) Gross Profit % of Net Revenues 39.6% 39.4% 37.9% 36.2% 36.9% 34.0% Fulfillment Excl. Incentive Plan Costs (15.1) (21.4) (15.4) (22.2) (5.4) (7.9) % of Net Revenues 9.9% 10.0% 10.2% 10.8% 9.9% 10.8% Sales & Marketing Excl. Incentive Plan Costs (16.4) (23.5) (17.0) (21.1) (6.0) (7.1) % of Net Revenues 10.8% 11.0% 11.3% 10.3% 11.0% 9.7% EBITDA Pre Corporate Costs % of Net Revenues 18.9% 18.4% 16.4% 15.0% 16.0% 13.5% General & Administrative Excl. Incentive Plan Costs (11.2) (16.5) (11.8) (15.0) (4.2) (4.4) % of Net Revenues 7.4% 7.7% 7.9% 7.3% 7.7% 6.0% Other Income/(Expenses) (1.0) (0.5) (0.4) (0.8) (0.2) (0.6) % of Net Revenues 0.6% 0.2% 0.3% 0.4% 0.3% 0.8% EBITDA Excluding Incentive Plan Costs % of Net Revenues 10.9% 10.5% 8.3% 7.3% 8.0% 6.7% Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro In this presentation, third quarter figures are calculated as the difference between the first nine months results and the first-half results of the same year Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation SLIDE 39

40 FOCUS ON INCENTIVE PLAN COSTS % of Total % of Total 9M 2010 % of Total 9M 2011 % of Total 3Q 2010 % of Total 3Q 2011 % of Total ( m) Fulfillment (15.514) (21.539) (15.462) (22.337) (5.459) (7.961) of which Incentive Plan Costs (0.394) 23.9% (0.152) 4.0% (0.102) 3.8% (0.179) 5.7% (0.071) 5.4% (0.087) 9.1% Sales & Marketing (16.747) (24.691) (17.794) (22.128) (6.385) (7.468) of which Incentive Plan Costs (0.347) 21.0% (1.163) 31.1% (0.764) 28.9% (1.046) 33.2% (0.419) 31.6% (0.375) 39.2% General & Administrative (12.105) (18.945) (13.623) (16.903) (5.000) (4.887) of which Incentive Plan Costs (0.910) 55.1% (2.429) 64.9% (1.781) 67.3% (1.925) 61.1% (0.837) 63.0% (0.494) 51.7% Incentive Plan Costs (1.651) 100.0% (3.744) 100.0% (2.647) 100.0% (3.150) 100.0% (1.327) 100.0% (0.956) 100.0% EBITDA Reported % of Net Revenues 9.9% 8.8% 6.5% 5.8% 5.5% 5.4% Incentive Plan Costs (1.651) (3.744) (2.647) (3.150) (1.327) (0.956) EBITDA Excl. Incentive Plan Costs % of Net Revenues 10.9% 10.5% 8.3% 7.3% 8.0% 6.7% SLIDE 40

41 SHAREHOLDER STRUCTURE Shareholder Fully Diluted 1 Current Federico Marchetti 7,090, % 2,411, % Management team and other stock option holders 6,231, % Sub-total 13,321, % 2,411, % Balderton Capital 5,870, % 5,870, % Red Circle 3,622, % 3,622, % Federated 3,055, % 3,055, % Caledonia Investments 2,705, % 2,705, % JP Morgan Asset Management 2,467, % 2,467, % Baillie Gifford & Co 1,927, % 1,927, % Wasatch Advisors 1,535, % 1,535, % Aviva Investors Global Services 1,289, % 1,289, % Capital Research and Management Company 1,125, % 1,125, % OppenheimerFunds 1,124, % 1,124, % 3 2 Market 25,934, % 25,934, % Total 63,978, % 53,068, % Updated as of November 14, The fully diluted column shows the effect on the Company s shareholder structure calculated assuming that all the stock options granted under the Company s stock option plans are exercised. It does not include 166,044 ordinary shares granted under the Incentive Plan 2. Excludes Federico Marchetti 3. Includes 154,331 proprietary shares SLIDE 41

42 ONLINE STORES PARTNERSHIP Strategic Partner YOOX Group Key Responsibilities Fashion Responsibilities Definition of Online Store look&feel Product assortment definition Pricing definition Marketing activities E-commerce Responsibilities Set-up and management of the Online Store Logistics Digital production Handling and shipping Invoicing Fraud check and credit collection Customer care Support and advisory to the Strategic Partner in all key decisions YOOX Group additional services: Yagency Digital experience (Web Design) Content Production Media Partnership Web Marketing Digital PR and Social Activities SLIDE 42

43 CONTACTS Investor Relations BOLOGNA - MILANO - NEW YORK - MADRID - PARIS - TOKYO - SHANGHAI - HONG KONG SLIDE 43