SPREADING PARISIAN CHIC ACROSS THE WORLD December, 2017
TODAY S TEAM Daniel Lalonde President & CEO Philippe Gautier CFO & Operations Director / 2
OUR INTERNATIONAL SUCCESS STORY #1 CREATION OF SANDRO AND MAJE Wholesale model #2 SWITCH TO RETAIL PURE-PLAYER Focus France #3 GLOBAL LIFESTYLE BRANDS International expansion Omnichannel Product diversification 1998 Creation of Maje by Judith Milgrom, sister of Evelyne Chetrite 2003 First Maje retail store (rue du Four, Paris) 2008 100 th POS 2011 500 th POS 1 st POS in the U.S. (Bleecker street, NY) 2012 1 st POS in Hong Kong (IFC Mall) 2015 1,000 th POS (Canary Wharf) 2016 Acquisition by Shandong Ruyi 2017 Successful IPO on Euronext Paris 1984 Creation of Sandro by Evelyne Chetrite 2004 First Sandro retail store (rue Vieille du temple, Paris) 2007 Creation of Sandro Homme by Ilan Chetrite, son of Evelyne Chetrite 2009 Acquisition of Claudie Pierlot (founded in 1984) 2010 Creation of SMCP Group 2013 First POS in Mainland China (Shanghai) 2016 Digital Sales reach 10% / 3
OUR GROWTH STORY X4 since 2010 +27% CAGR 786 675 509 417 Sales ( m) 260 339 188 2010 2011 2012 2013 2014 2015 2016 % of international in total sales 28% 35% 42% 50% 54% 2010 net sales are a pro-forma consolidation from the 3 sub-group consolidated accounts of Sandro Andy SA, Maje SAS, and Claudie Pierlot SAS 2010 and 2011 Net Sales in French GAAP Change of accounting method to IFRS from 2012 onward / 4
SMCP TODAY Q3 2017 9M 2017 1,295 points of sale + 97 points of sale over the LTM 218m sales +17.7% sales growth +20.0% at constant currency 657m sales +16.8% sales growth +17.8% at constant currency Breakdown of 9M 2017 sales By brand 12% By geography 12% 38% 50% 16% 42% 30% Sandro Maje Claudie Pierlot France APAC EMEA Americas / 5
OUR PRESENCE IN THE WORLD (9M 2017 FIGURES) France: / Net Sales: 277m, +4% / 42% of total sales / 474 stores Americas: / Net Sales: 75m, +18% / 11% of total sales / 148 stores APAC: / Net Sales 107m, +39% / 16% of total sales / 258 stores EMEA / Net Sales: 198m, +27% / 30% of total sales / 415 stores / 6
WHAT MAKES US UNIQUE Globally desirable brands/proof of concept Global brand consistency High growth: consistent, quality, profitable Unique proven business model Ability to replenish best sellers in season LUXURY Creative process High end image Prestigious locations Personalised service FAST FASHION Fast, agile product cycle Creation within a frame Newness all the time Scalable retail model Pricing power Superior Gross Margin Full omnichannel capabilities Ability to bring newness (25 products/week in stores) Retail pure player / 7
OUR GROWTH STRATEGY I: PURSUE ORGANIC GROWTH II: GAIN MARKET SHARE IN FRANCE France III: DEVELOP FOOTPRINT Expand footprint in key international markets BUILD ON THE CORE GROW DIGITAL Greater China 1 UK Spain Germany Italy North America Strengthen partnerships South Korea Australia Middle East 2 DEVELOP MEN S EXPAND ACCESSORIES Notes: 1 Includes Mainland China, Hong-Kong, Macau and Taiwan; 2 Includes UAE, Saudi Arabia, Kuwait and Qatar / 8
Q3 2017 BUSINESS HIGHLIGHTS / Strong start of FW 17 collections with positive market reaction across all brands / Opening of Taiwan as a new direct market, in Taipei 101 and Breeze / Continued expansion with 28 net openings / Notable openings this quarter: / Sandro Regent street, Munich, Frankfurt and Shenzhen / Maje Cologne, Luxemburg, Hong Kong Elements, and Shenzhen / Claudie Pierlot Luxemburg, Cologne, and La Rinascente in Rome and Milan / Two additional cities in Mainland China: Kunming and Harbin / Opening of Sandro and Maje eshops in China / Network optimization and key refurbishments in France FW17 best sellers in Q3 / Pre-launch of eyewear collections for Sandro and Maje, enriching accessories / Omni-channel development with roll-out of endless aisle for Maje in France / Start of Isabelle Guichot as CEO of Maje, former President & CEO of Balenciaga Sandro Regent street in London, UK / 9
Q3 2017 FINANCIAL HIGHLIGHTS Very strong growth in Q3 at +17.7% to 218m (+20.0% at constant currency) boosted by specific circumstances: In France, positive calendar effect with a one week shift in the summer sales period from June to July In Europe, exceptional September benefitting from positive market conditions and a low comparable basis Strong sales growth in 9M 2017 of +16.8% to 657m (+17.8% at constant currency) Positive impact of LFL levers and international expansion with the net opening of 97 points of sales over the LTM Despite challenging and unstable markets Solid performance across brands and regions Further market share gains in France Strong performance internationally, with 9M sales up +28.1% (+30.1% at constant currency), reaching 58% of total sales Confirmation of our full year 2017 guidance / 10
QUARTERLY SALES BY REGION Sales growth vs. LY Q1-17 Q2-17 H1-17 Q3-17 9M-17 France +4% -3% +1% +12% +4% EMEA +24% +30% +27% +27% +27% Americas +25% +26% +26% +3% +18% APAC +42% +52% +47% +26% +39% Total +17% +16% +16% +18% +17% / Very strong growth in Q3 for France and EMEA at +12% and +27% respectively, boosted by: One week shift in the summer sales period from June to July in France Exceptional month of September in Europe / Stronger negative currency impact in Q3, mostly in Americas and APAC / In Americas, more selective promotional approach in August / 11
( m) 9M SALES BY REGION Sales 562.2 +4% +11.0 +27% +18% +42.0 +11.4 +39% +30.0 656.6 / In France, solid performance at +4% in 9M with further market share gains considering: Slightly more favorable market Strategy to optimize the quality of our network resulting in a lower door count POS Sales 9M 2016 France EMEA Americas APAC Sales 9M 2017 1,198 1,223 210 221 +17% + 72 POS 1,295 258 136 140 148 373 383 415 479 479 474 9M 2016 FY 2016 9M 2017 France EMEA Americas APAC Q3 +28 +19 +9 +5-5 VAR LTM +97 +48 +12 +42-5 /In EMEA, very strong performance with sales up +27%: Strong performance across all strategic markets Continued POS expansion with +42 net openings in EMEA over the LTM, mostly in Italy and Germany / In Americas, strong performance at +18% in a challenging market: Great execution across all channels Strong success in Canada +12 net openings over the LTM including pilot with Nordstrom / In APAC, outstanding performance at +39%: Confirmed potential of the Chinese market in both tier 1 and tier 2 cities +48 net openings over the LTM mainly in Greater China (+31) / 12
QUARTERLY SALES BY BRAND Sales % growth Q1-17 Q2-17 H1-17 Q3-17 9M-17 Sandro +22% +23% +22% +26% +23% Maje +9% +10% +10% +6% +8% Claudie Pierlot +22% +10% +16% +29% +20% Total +17% +16% +16% +18% +17% / Overall, all brands are performing well above market trend / 13
( m) 9M SALES BY BRAND Sales (1) 562.2 +23% +61.7 +8% +20% +19.1 +13.6 656.6 / Outstanding performance of Sandro, up +23% in 9M with +49 net openings over the LTM: Strong success of both Women & Men collections Expansion boosted by the opening of very meaningful European doors +17% Fastest growth of digital in the Group, bringing it more in line with other brands Sales 9M 2016 Sandro Maje Claudie Pierlot Sales 9M 2017 POS + 72 POS 1,198 1,223 49 50 182 188 1,295 48 200 439 445 470 +13 +31 528 540 577 +15 +49 9M 2016 FY 2016 9M 2017 Sandro Maje Claudie Pierlot Suite 341 1 Suite 341 sales are split between the 3 brands VAR Q3 LTM +28 +97-2 -1 +2 +18 / Solid growth of Maje at +8% in 9M with +31 net openings over the LTM: Expansion focused on Greater China Collaboration with Schott in September Continued success of accessories, notably on the M bag family / Very strong performance of Claudie Pierlot at +20% in 9M with +18 net openings over the LTM: Growing awareness of the brand in Europe with continued expansion including its 1 st free standing store in Germany and corners at La Rinascente in Milan and Rome Successful launch of the Anouck bag in September / 14
OUTLOOK / Q4 performance: Softer market in Europe in October given strong September Satisfactory trading in November Negative currency impact similar to Q3 / H2 to be in line with our expectations / Confirmation of our full year 2017 guidance / 15
GUIDANCE 2017 Guidance Medium term (2018 2020) Net sales ( m) c.1,080 DOS at year-end Net sales of c. 900m 80-90 DOS openings per year Net sales growth stabilizing at around 11%-13% EBITDA margin 1 (%) EBITDA margin in line with 2016 EBITDA margin expansion of 100 bps by 2020 Capex / Capex as % of net sales Total Capex of 50-53m Maintenance & infrastructure Capex accounting for c. 20m Total Capex of c.4.5%-5.0% of net sales Maintenance & infrastructure capex of c.2.0%-2.5% of net sales Dividends Priority to reinvest cash flows in our growth strategy Dividend distribution will be considered once mid-term capital structure is fully in place Net leverage Leverage of <2.25x at IPO Intention to refinance remaining High Yield notes by 2019 (post call date) 1 Guidance on EBITDA margin excluding LTIP / 16
SHAREHOLDING STRUCTURE, UPCOMING EVENTS Shareholding post FPS conversion as of November 29 th(1) Upcoming event / FY 2017 sales on January 30 th, 2018 / FY 2017 results on March, 21 th, 2018 (3) (2) Number of shares 73,170,023 ordinary shares as of November 29 th(4) 78,242,896 ordinary shares post FPS conversion (1) Contacts Website: www.smcp.com/finance Investor Relations: / investor-relations@smcp.com / pauline.roubin@smcp.com Media: smcp@brunswickgroup.com 1 Post FPS conversion into ordinary shares and excluding LTIP program impact 2 Founders holding 6% and Managers 5% 3 Indirect shareholding through European TopSoho SARL 4 Excluding FPS and LTIP program impact / 17
APPENDIX / 18
NET SALES AND EBITDA m FY 2014 FY 2015 FY 2016 H1 2016 H1 2017 Net sales 508.6 675.4 786.3 377.2 438.9 Gross margin 394.1 512.6 602.5 285.8 335.1 as % of net sales 77.5% 75.9% 76.6% 75.8% 76.3% Retail margin 182.9 240.0 287.6 135.8 159.6 as % of net sales 36.0% 35.5% 36.6% 36.0% 36.4% SG&A -109.1-133.4-158.0-74.7-86.5 as % of net sales -21.4% -19.8% -20.1% -19.8% -19.7% EBITDA 73.8 106.5 129.6 61.1 73.1 as % of net sales 14.5% 15.8% 16.5% 16.2% 16.7% APPENDIX / 19
QUARTERLY NET SALES BY BRAND AND REGION In m Q1-16 Q1-17 Delta % Q2-16 Q2-17 Delta % H1-16 H1-17 Delta % Q3-16 Q3-17 Delta % 9M-16 9M-17 Delta % France 95 99 +4% 91 88-3% 186 187 +1% 80 90 +12% 266 277 +4% EMEA 52 65 +24% 50 65 +30% 102 129 +27% 54 69 +27% 156 198 +27% Americas 21 26 +25% 21 26 +26% 42 52 +26% 22 23 +3% 63 75 +18% APAC 25 36 +42% 23 35 +52% 48 70 +47% 29 37 +26% 77 107 +39% Total 193 225 +17% 184 214 +16% 377 439 +16% 185 218 +18% 562 657 +17% Sandro 92 112 +22% 86 105 +23% 177 217 +22% 86 108 +26% 264 325 +23% Maje 78 86 +9% 75 82 +10% 153 168 +10% 77 82 +6% 231 250 +8% Claudie Pierlot 23 28 +22% 24 26 +10% 47 54 +16% 21 28 +29% 68 82 +20% Total 193 225 +17% 184 214 +16% 377 439 +16% 185 218 +18% 562 657 +17% Total growth at constant currency +17% +17% +17% +20% +18% / 20
BREAKDOWN OF POS Directly operated stores Number of DOS 9M-16 FY-16 Q1-17 H1-17 9M-17 Delta Q3 Delta LTM at 9M-17 By region France 479 479 476 479 474-5 -5 EMEA 285 294 302 306 316 +10 +31 Americas 128 132 131 131 128-3 - APAC 88 93 95 106 122 +16 +34 By brand Sandro 428 436 436 446 453 +7 +25 Maje 340 344 344 349 356 +7 +16 Claudie Pierlot 163 168 174 177 183 +6 +20 Suite 341 49 50 50 50 48-2 -1 Total DOS 980 998 1004 1022 1040 +18 +60 Total points of sales Number of POS 9M-16 FY-16 Q1-17 H1-17 9M-17 Delta Q3 Delta LTM at 9M-17 By region France 479 479 476 479 474-5 -5 EMEA 373 383 400 410 415 +5 +42 Americas 136 140 139 139 148 +9 +12 APAC 210 221 226 239 258 +19 +48 By brand Sandro 528 540 547 562 577 +15 +49 Maje 439 445 448 457 470 +13 +31 Claudie Pierlot 182 188 196 198 200 +2 +18 Suite 341 49 50 50 50 48-2 -1 Total POS 1198 1223 1241 1267 1,295 +28 +97 o/w Partners POS 218 225 237 245 255 +10 +37 / 21
SALES AFTER DEDUCTION OF COMMISSIONS In m Q3 2016 Q3 2017 Delta % 9M 2016 9M 2017 Delta % Sales 185.0 217.7 +17.7% 562.2 656.6 +16.8% Commissions -23.5-26.9 +14.5% -74.1-82.7 +11.5% Sales after commissions 161.5 190.8 +18.1% 488.0 573.9 +17.6% Note: Sales consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. / 22
COMMUNICATION FORMAT KPIs Q1 & 9M communications FY & H1 communications Sales Sales - By region - By brand Sales growth at constant currency Group LFL growth Network POS & DOS - By region - By brand Financial accounts Profit & Loss - EBITDA by brand Balance sheet Cash flow statement / 23
DEFINITIONS OF NON-IFRS FINANCIAL MEASURES Like-for-like sales growth consists of retail sales from directly operated points of sale on a like-for-like basis in a given period compared with the same period in the previous year, expressed as a percentage change between the two periods. Like-for-like points of sale for a given period include all the Group s points of sale that were open at the beginning of the previous period and exclude points of sale closed during the period, including points of sale closed for renovation for more than one month, as well as points of sale that changed their activity (for example, Sandro points of sale changing from Sandro Femme to Sandro Homme or to a mixed Sandro Femme and Sandro Homme store). Likefor-like sales growth percentage is presented at constant exchange rates (sales for year N and year N-1 in foreign currencies are converted at the average N-1 rate, as presented in the annexes to the Group's consolidated financial statements as of December 31 for the year N in question). Sales consists of total sales (retail and wholesale sales) net of rebates, discounts, VAT and other sales taxes, but before the deduction of concession fees paid to department stores and commissions paid to affiliates. Sales growth at constant currency corresponds to total sales in a given period compared with the same period in the previous year, expressed as a percentage change between the two periods, and presented at constant exchange rates (sales for period N and period N-1 in foreign currencies are converted at the average year N-1 rate). / 24
DISCLAIMER Certain information contained in this document may include projections and forecasts. These projections and forecasts are based on SMCP management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ materially from those in such projections and forecasts as a result of numerous factors, risks and uncertainties. This document has not been independently verified. SMCP makes no representation or undertaking as to the accuracy or completeness of such information. None of the SMCP or any of its affiliates representatives shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. For more information regarding these factors, risks and uncertainties, please refer to the information contained in the documents filed with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) as part of the regulated information disclosure requirements and available on SMCP's website (www.smcp.com). / 25