Interim Management Report as of March 31, 2015

Interim Management Report
as of March 31, 2015
Interim Management Report as of March 31, 2015
CONTENTS
Company information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Board of directors and of auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group organization chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INTERIM MANAGEMENT REPORT
3
4
5
6
7
Group operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Performance of the group as of march 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Analysis of revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
– Revenues by geographical area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
– Revenues by distribution channel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
– Revenues by product line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Operating results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Net profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Analysis of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Significant events after the reporting period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Business outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Principles applied in preparing the interim report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Accounting standards and consolidation principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Related-party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
FINANCIAL STATEMENTS
Consolidated statement of financial position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated statement of comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condensed consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated statement of changes in equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
47
48
49
STATEMENT PURSUANT TO ARTICLE 154 (2) BIS OF THE TUF . . . . . . . . . . . . . . . . . 51
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Interim Management Report as of March 31, 2015
COMPANY INFORMATION
REGISTERED OFFICE OF THE GROUP HOLDING COMPANY
Moleskine S.p.A.
Viale Stelvio 66 – 20159
Milan
LEGAL INFORMATION OF THE GROUP HOLDING COMPANY
Approved share capital Euro 2,121,802.05
Subscribed and fully paid-up share capital Euro 2,121,802.05
Milan Company Register no. 07234480965
Milan Economic and Administrative Index (REA) no. 1945400
Tax code and VAT no. 07234480965
Company website www.moleskine.com
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Interim Management Report as of March 31, 2015
BOARD OF DIRECTORS AND OF AUDITORS
Board of Directors
Marco Ariello
Arrigo Berni Philippe Claude Sevin
Giuseppe Zocco
Daniele Raynaud Fabio Brunelli Daniela Della Rosa
Claudia Parzani*
Orna Ben Naftali*
Chairman
Chief Executive Officer
Director
Director
Director
Independent director
Independent director
Director
Director
Remuneration Committee
Daniela Della Rosa
Fabio Brunelli
Marco Ariello
Chairman
Control and Risk Committee
Board of Statutory Auditors
Independent Auditors
Executive officer in charge
of the Financial Reports
Fabio Brunelli
Daniela Della Rosa
Marco Ariello
Paola Maiorana
Rocco Santoro
Roberto Spada
Sabrina Pugliese
Cristiano Proserpio
PricewaterhouseCoopers SpA
Chairman
Chairman
Statutory Auditor
Statutory Auditor
Alternate Auditor
Alternate Auditor
Alessandro Strati
(*) As of March 11, 2015, following the resignation of Director Claudia Parzani, the shareholders at their meeting held on April 15, 2015 confirmed the proposal
made by the Board of Directors on March 11, 2015 to appoint Orna Ben Naftali, who was co-opted on the same date.
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Interim Management Report as of March 31, 2015
GROUP STRUCTURE
The Group includes the Holding Company Moleskine S.p.A. (“Moleskine” or the “Company”], Moleskine
America, Inc. (“Moleskine America”), a wholly owned direct subsidiary headquartered in New York (210
Eleventh Avenue, Suite 1004), Moleskine America Retail LLC (“Moleskine America Retail”), organized in
accordance with the laws of the state of the Delaware, and a wholly-owned subsidiary of Moleskine America;
it also includes Moleskine Asia Ltd (“Moleskine Asia”), headquartered in Hong Kong (Suite 3202A, 32/F, The
Centrium) wholly owned by the Company, Moleskine Trade and Commerce Shanghai Co.Ltd (“Moleskine
Shanghai”), with registered offices in Shanghai (Unit 3506, Tower 2, Grand Gateway Center, No.3, Hong
Qiao Road, Xuhui District ), Moleskine Singapore Pte Ltd (“Moleskine Singapore”), headquartered in
Singapore (6001 Beach Road HEX 13-04 Golden Mile Tower), and Moleskine Japan K. K. (“Moleskine Japan”),
headquartered in Tokyo (5-4-35-1301 Minami Aoyama, Minato-ku). These last three companies are wholly
owned by Moleskine Asia.
Companies also included within the Group are Moleskine France S.à.r.l (“Moleskine France”), headquartered
in Paris (39, rue Beauregard), Moleskine Germany Gmbh (“Moleskine Germany”), based in Cologne
(Spichernstrasse 73), and Moleskine UK Ltd (“Moleskine UK”), with registered offices in London (Second
floor, Cardiff House, Tilling Road), all of which are wholly owned by the group holding company, Moleskine.
The following chart shows the structure of the Group and Moleskine’s subsidiaries along with the percentages
held.
Moleskine SpA
Moleskine
America
100%
Moleskine
America
Retail
100%
Moleskine
France
100%
Moleskine
Germany
100%
Moleskine
UK
100%
Moleskine
Japan
100%
Moleskine
Asia
100%
Moleskine
Shanghai
100%
Moleskine
Singapore
100%
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Interim Management Report as of March 31, 2015
GROUP ORGANIZATION CHART
The Group organization chart as of March 31, 2015, is shown below.
CEO
Internal
Audit
Manager
Retail
Director
Executive
Brand
Equity
Director
Executive
Publishing
& New
Business
Development
Director
CFO
Chief
Operating
Oficer (COO)
Digital
Innovation
Director
HR
Director
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Interim Management Report as of March 31, 2015
DISTRIBUTION NETWORK
The Group markets its products through various distribution channels.From the perspective of the consumer,
the Group is present on the market through:
– the retail distribution channel, i.e. the direct distribution channel (retail) in which the Group relies on
stores managed either by third-parties or directly, the latter of which are referred to as Directly Operated
Stores (DOSs);
– the wholesale channel, i.e. the channel which makes use of intermediaries to sell to consumers, in which
case the Group’s customers are these intermediaries;
– the B2B channel, aimed at the direct sale of customized Moleskine products to businesses, institutions and
a variety of organizations by way of a combined direct and indirect model;
– the e-Commerce channel, i.e. online product sales through our own websites.
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management
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as of March 31, 2015
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Interim Management Report as of March 31, 2015
GROUP OPERATIONS
INTRODUCTION
With reference to the three months ended March 31, 2015, the figures given in this report, together with
the associated remarks, are meant to give an overview of Group’s financial performance and standing, the
changes that occurred during the period under review, and any significant events that affected these results.
OPERATING CONDITIONS AND BUSINESS DEVELOPMENT
Moleskine is the brand through which the Group develops, distributes and sells a family of products for
the modern-day nomad: notebooks, journals, diaries, bags, writing instruments and reading accessories
dedicated to the mobile individual, products that embody personal flair and sophistication in both the real
and the digital worlds.
The Group sells two lines of products and services:
i) paper collections (“Paper Collections”), such as notebooks, agendas, other home-officeproducts, and
gifts;This line also includes analog/digital products and services, namely belonging to the “ADA-AnalogDigital-Analog” category, working as a “continuum” between the physical and the digital world.
Several examples of the products included in this category are the Smart Notebook line developed together
with Evernote, a notebook designed to work with Livescribe smart pens, as well as the notebook developed
in partnership with Adobe, the leader in digital marketing and digital media solutions.
ii) writing, travel and reading accessories (the “WTR Collections”), such as pens and pencils, bags, eyewear,
and reading lights.
The Group distributes its products to 113 countries:
i) indirectly through a network of 76 distributors (i.e. the wholesale channel), which serve bookshops,
department stores, stationers, museums and other specialty stores (i.e. retailers); and
ii) a) through a mixed direct and indirect model for the custom editions designed for our business customers
(i.e. B2B); b) through our e-Commerce site; and c) through our retail network of 36 single-brand stores
(12 in China, 1 in Singapore, 2 in Hong Kong, 8 in Italy, 3 in the U.K., 4 in France, 1 in Germany and 5 in the
U.S.).
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Interim Management Report as of March 31, 2015
ACTIVITIES CARRIED OUT BY THE GROUP TO INCREASE BRAND AWARENESS
The activities carried out in the course of the three months ended March 31, 2015, to support brand awareness
have continued along the main lines pursued in 2014:
– Limited editions and special cult editions. For the younger crowd, two new Limited Edition Notebooks
were launched, featuring world-renowned icons: Alice in Wonderland, a literary classic, and Batman,
one of the most popular superheroes.Marketing support for new product launches also included adding
new titles to the Inspiration and Process in Architecture collection dedicated to Kengo Kuma, Grafton
Architects and Marcio Kogan of Studio MK27. Also worth mentioning is the new limited edition notebook,
Skyline Milano, dedicated to exploring the city through its iconic sites.
–Events. Among the most important initiatives we would like to mention the partnership with TED
(Technology, Entertainment and Design), an international leader in events exploring technology, creativity
and innovation, at their conference held in Vancouver in March. Moleskine handed out personalized Classic
backpacks, notebooks and pens to all 2,550 participants. A designated area was set up for Moleskine,
featuring an experiential learning table open to all participants to give them the opportunity to try out
Moleskine products, including the analog/digital collections, covers and pens. Moleskine also played the
role of media partner, collecting the ideas presented at the TED conference using analog and digital tools,
raising interest through digital PR channels.
TED conference, Vancouver, March 2015
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Interim Management Report as of March 31, 2015
TED conference, Vancouver, March 2015
Another major event during the quarter was that Moleskine became a member of Altagamma Foundation,
an organization bringing together almost 90 of the best Italian luxury firms. Established in 1992, it has
an aggregate turnover of 18 billion euro, mostly from sales abroad. As a founding member, Moleskine will
participate in the initiatives sponsored by the Foundation, bringing its contribution and using the services
that Altagamma provides exclusively to its members. In a contemporary era where knowledge is created and
spread in non-traditional ways, ideas are generated on the move and the analog and digital realm tend to
intertwine, Moleskine, through its nomadic objects, provides open platforms for creativity, a value that unites
all brands that are part of Altagamma.
Moleskine partnered with the Hong Kong International Film Festival, one of Asia’s largest film events,
for the fourth time and created a special edition notebook by Sylvia Chang; also worth mentioning is our
participation at the Biennale International Design Saint-Etienne, one of the most important international
events for the world of industrial design, where we showed our collection of Classic Bags and pens designed
by Giulio Iacchetti.
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Interim Management Report as of March 31, 2015
Special edition notebook for the Hong Kong International Film Festival
Participation at the Biennale di Design di Saint Etienne
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Interim Management Report as of March 31, 2015
– New product launches. In the first quarter of 2015, several new collections were launched for the public,
including Moleskine Chapter Journals. Divided into chapters, these journals keep your daily lists, notes
and ideas organized and the slim new sizes fits perfectly in your pocket. We also unveiled the new book
series, Fashion Unfolds, on the world of fashion where each books unfolds the creative process of a
leading international designer. New colors have been introduced for Tool Belt, an accessory designed to
wrap around Moleskine notebooks. We also launched click pens and clip pens, new models of the myCloud
series (the Small Backpack, the Briefcase and the Briefcase Curve), along with new covers designed for
iPhone 6 and 6 plus.
EXPANSION OF BRAND DISTRIBUTION
In line with the strategy for augmenting brand distribution, the Group has increased the number of points
of sale served by the wholesale channel and has also intensified its presence and visibility within the Top
Retailers, while continuing to invest in trade marketing and visual merchandising through Ateliers and other
displays for a total of 188 installations worldwide as of March 31, 2015 (vs. 159 installations as of March 31,
2014).
The new installations during the quarter include Ateliers at Feltrinelli in Piazza Duomo, Milano, Payot in
Geneva and UCSD in San Diego, California; the Atelier at Selfridges department store has been updated by
revamping and improving the structure, position and assortment.
During the first three months of 2015, activities aimed at supporting a pillar of our growth strategy, i.e. the
opening of direct, single-brand stores, included two new stores: one in Rome (Via Frattina) and one in Eslite
Hong Kong (in this case passing from the wholesale channel to the retail channel). During the first quarter of
2015, four temporary stores were closed due to the expiration of the contract as agreed, Spietafield, Boxpark
and Old Street in London and Saint Honoré in Paris. Three permanent stores closed: Shorthills in the US,
Takashimaya in Asia and Naples, the last two were due to the expiration of the contract as agreed.
Store in Rome, Via Frattina
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Interim Management Report as of March 31, 2015
Store in Rome, Via Frattina
EXPANSION OF THE PRODUCT LINE
The 2015 strategy for Moleskine collections involves expanding the current range, with the aim to ramp up
capacity to meet the needs of our target audience thanks to innovative offerings, along with re-launching our
existing offerings.
In the Travelling line, the myCloud Bag Series has been expanded with two new offerings, always combining
high functionality with Moleskine’s iconic design. Geared toward business customers, the new products
include: two Briefcase models, one for men and one for woman, and two color variations for the Small
Backpack.
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Interim Management Report as of March 31, 2015
myCloud Backpack
myCloud Briefcase Curve
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Interim Management Report as of March 31, 2015
The new models of myCloud bags, the perfect solution for staying organized at work, have transformed the
concept of the “myanalog cloud” into reality; in other words, all of the things that the contemporary nomad –
Moleskine’s primary target – chooses to carry every day and which is right at home in these bags.
Moleskine has stepped into a new market with its two models of Device Bags, built to transport and protect
digital devices on a daily basis: these handy and versatile bags can be used as a shoulder bag or backpack.
Horizontal Device Bag
Two of the most popular models of the Classic Bags collection, Backpack and Messenger, were updated with
improved materials and characteristics, while keeping the powerful and iconic design and the underlying
concepts.
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Interim Management Report as of March 31, 2015
Classic Messenger Bag
Classic Backpack
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Interim Management Report as of March 31, 2015
Moleskine has expanded the Writing collection to include 6 new pen body colors for the Classic Pen collection;
to complete the existing offering, so as to meet the various preferences in writing methods of our users,
the pens are available in cap-and-roller and click/ball-point versions: a new palette in line with the entire
Moleskine collection, retaining the original rectangular shape, which ensures that the pen is a perfect match
for our notebooks thanks to the specially designed clip.
Writing_Classic Collection
With the aim to strengthen the link between the Paper and WTR collections, leveraging the core offer, we
have expanded the Tool belt, a handy accessory for notebooks/diaries that physically integrates analog and
digital tools, allowing you to transport your things safely, since it fits perfectly on notebooks and has zippered
pockets to hold digital media: two new colors have been added to the existing colors in large format together
with the pocket format in the classic colors Payne’s Grey and Red.
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Interim Management Report as of March 31, 2015
Notebook Tool Belt
The Journals category, today ruled by Moleskine, with two distinct offerings of journals for everyday notes, has
been identified as having the potential to attract new targets and increase the frequency of purchasing: with
the aim to grow in size and importance for the target, we introduced the new Chapters Collection: the perfect
journals to organize ideas and notes anytime and anywhere because they are divided into numbered chapters
that can be personalized, and fit in your pocket thanks to the slim style. Characterized by a distinctive design
with coptic binding, the new Chapters journals – in three colors, three sizes and two layouts – are available
as a single sales unit, completing the Volant collection, a set of two journals in two shades of the same color,
and the Cahier collection, a set of 3 journals with cardboard covers that can be personalized and decorated.
Chapters Collection
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Interim Management Report as of March 31, 2015
Chapters Collection
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Interim Management Report as of March 31, 2015
For the younger crowd, two new licenses for granted for Limited Edition Notebooks featuring world-renowned
icons: Alice in Wonderland, a literary classic, and Batman, one of the most popular superheroes. Four items
for each license of the two themes as limited editions with a fixed number of products produced, available
only on official Moleskine e-Commerce and retail sites.
Batman Collection
Alice Adventures in Wonderland Collection
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Interim Management Report as of March 31, 2015
PERFORMANCE OF THE GROUP AS OF MARCH 31, 2015
The following tables show i) the consolidated income statement as of March 31, 2015, compared to the same
period of the previous year, ii) the sources and uses of funds statement as of March 31, 2015, compared to
December 31, 2014, and iii) capital expenditures and cash flow from operating activities during the three
months ended March 31, 2015, compared to March 31, 2014.
In addition to the conventional financial statements and indicators required under IFRS, this document
also presents some reclassified statements and alternative performance indicators in order to better assess
the Group’s financial performance. Nonetheless, these statements and indicators should not be considered
replacements for the conventional ones required by the IFRSs.
Please note that, although the Group business does not undergo significant seasonal or cyclical changes in
overall annual sales, it is influenced by different distributions of revenue and expenses across the various
months of the year. For this reason, an analysis of financial standing and performance for the period under
review should not be considered a fully proportionate share of the entire year.
CONDENSED CONSOLIDATED INCOME STATEMENT
Period ended March 31,
Change
In thousands of Euro and percentage
of revenues
2015 %
2014 %
2015 Vs
2014 %
Revenues
EBITDA (1)
Operating income
Net profit
Adjusted revenues (2)
Adjusted EBITDA (3)
Adjusted operating income (3)
Adjusted net income (3)
23,142
4,879
3,753
2,794
23,125
5,260
4,134
3,059
100.0%
21.1%
16.2%
12.1%
100.0%
22.7%
17.9%
13.2%
17,351
3,221
2,327
1,166
17,322
3,514
2,620
1,370
100.0%
18.6%
13.4%
6.7%
100.0%
20.3%
15.1%
7.9%
5,791
1,658
1,426
1,628
5,803
1,746
1,514
1,689
33.4%
51.5%
61.3%
139.6%
33.5%
49.7%
57.8%
123.3%
(1) The Group defines EBITDA as operating income (EBIT) before depreciation, amortization and impairment of non-current assets. EBITDA is not recognized as
a measure of financial performance or liquidity under IFRS; therefore, it should not be considered an alternative measure for assessing the performance of
Group operating income. Since the method for calculating EBITDA is not governed by reference accounting standards, the method applied by the Group may
not be the same as that adopted by others and therefore may not be comparable.
(2) Adjusted revenues represent revenues from the income statement net of revenues generated by the sale of displays and other revenues and income not
relating to the ordinary business.
(3) Adjusted EBITDA, adjusted EBIT, and adjusted net income are net of non-recurring transactions and transactions that are not directly related to our core
business, and are presented along with their percentages of adjusted revenues.
***
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Interim Management Report as of March 31, 2015
ANALYSIS OF THE SOURCES AND USES OF RESOURCES
In thousands of Euro
Fonti e Impieghi
Impieghi
Net working capital
Non-current assets
Non-current liabilities, net deferred taxes and current provisions for risks
and charges
Net invested capital
Fonti
Net Financial indebtedness
Net Equity
Total sources of financing
As of
31 March, 2015
31 December, 2014
21,170
89,329
20,188
89,528
96,394
(16,037)
93,679
4,010
92,384
4,619
89,060
(14,105)
96,394
OTHER INFORMATION
In thousands of Euro
93,679
As of
31 March, 2015
31 March, 2014
Investments (4)
571
711
(4) Capital expenditures refer to gross investments in property, plant and equipment and in intangible assets.
***
The tables below show how certain adjusted indicators used to represent the Group’s operating performance,
net of extraordinary events, are calculated. These indicators make it easier to compare financial information
across periods since they are based on the key financials of the Group net of events which are not directly
related to our core business.
The Group has calculated adjusted revenues as follows:
In thousands of Euro
Revenues
Revenues from display
Other income
Adjusted revenues
Period ended March 31,
2015
2014
23,142
(23)
6
17,351
(44)
15
23,125
17,322
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Interim Management Report as of March 31, 2015
Adjusted EBITDA is the net profit gross of amortization of intangible assets, depreciation of property, plant
and equipment, impairments, finance income and expense and income tax, gross of non-recurring and
extraordinary income and expenses including, but not limited to:
i) severance costs and other costs related to company reorganizations;
ii) legal fees and other costs related to extraordinary transactions (e.g. changes in distribution models, the
termination of agreements with distributors or suppliers, lump-sum and other types of costs paid in
settlements with third parties, etc.);
iii) costs related to fiscal disputes;
iv) other one-off costs not associated with ordinary operations (e.g. costs related to recalls, costs for
adaptations to applicable domestic and/or international laws and regulations, etc.);
v) extraordinary and non-recurring income (e.g. insurance settlement in the event of a warehouse fire, etc.)
The Group has calculated adjusted EBITDA as follows:
In thousands of Euro
EBITDA
Management incentive plan (Stock Option)
Ancillary costs related to the IPO process
Change in the business model Wholesale (5)
Other consulting fees (5)
Other costs (5)
Bonuses and early retirement incentives for employees (6)
Total activities which are not directly related to the ordinary business
Adjusted EBITDA
Period ended March 31,
2015
2014
4,879
85
52
8
73
163
3,221
74
124
28
67
-
381
5,260
293
3,514
(5) Included in the Income Statement item Service costs.
(6) Included in the Income Statement item Personnel costs.
The Group has calculated adjusted operating income as follows:
In thousands of Euro
Period ended March 31,
2015
2014
Operating profit (EBIT)
Total activities which are not directly related to the ordinary business (7)
3,753
381
2,327
293
Adjusted EBIT
4,134
2,620
(7) See the reconciliation of adjusted EBITDA.
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Interim Management Report as of March 31, 2015
The Group has calculated adjusted net income as follows:
In thousands of Euro
Period ended March 31,
2015
2014
Net income
Total activities which are not directly related to the ordinary business
Income tax effect
2,794
381
(116)
1,166
293
(89)
Adjusted Net income (8)
3,059
1,370
(8) Adjusted net income is therefore calculated net of the effect of non-recurring expenses and others not directly related to our core business and net of the
relative tax effect.
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Interim Management Report as of March 31, 2015
ANALYSIS OF REVENUES
Revenues increased Euro 5,791 thousand, or 33.4%, from Euro 17,351 thousand in the first three months of
2014, to Euro 23,142 thousand in the first three months of 2015. Adjusted revenues went from Euro 17,322
thousand in the first three months of 2014 to Euro 23,125 thousand in 2015 for an increase of 33.5%: at
constant exchange rates, this increase compared with the same period last year would be 19.7%.
The growth in sales revenue is mainly due to the increase in volumes related to the development of the
multichannel strategy, the change in the American and German business models, and the positive effect of the
appreciation of the US dollar and associated exchange rate, mainly concerning the Hong Kong dollar.
26
Interim Management Report as of March 31, 2015
REVENUES BY GEOGRAPHICAL AREA
The following tables show the breakdown by geographical area of revenues and adjusted revenues for the
three months ended March 31, 2015 and 2014:
In thousands of Euro
Period ended March 31,
Change
Revenues by geographical area
2015 %
2014 %
2015 Vs
2014 %
EMEA (Europe, Middle East, Africa)
Americas (USA, Canada, Latin America)
APAC (Asia Pacific)
9,805
9,353
3,984
42.4%
40.4%
17.2%
8,947
6,586
1,818
51.6%
38.0%
10.4%
858
2,767
2,166
9.6%
42.0%
119.1%
Total Revenues
23,142
100.0%
17,351
100.0%
5,791
33.4%
ADJUSTED REVENUES BY GEOGRAPHICAL AREA
AMERICAS 40.5%
EMEA 42.3%
APAC 17.2%
In thousands of Euro
9,788
+42%
3,984
+9.7%
In thousands of Euro
+119.7%
Period ended March 31,
Change
Adjusted revenues by geographical area 2015 %
2014 %
2015 Vs
2014 %
EMEA (Europe, Middle East, Africa)
Americas (USA, Canada, Latin America)
APAC (Asia Pacific)
42.3%
40.5%
17.2%
8,923
6,586
1,813
51.5%
38.0%
10.5%
865
2,767
2,171
9.7%
42.0%
119.7%
Total Adjusted Revenues
9,788
9,353
3,984
23,125
100.0%
17,322
100.0%
5,803
33.5%
27
Interim Management Report as of March 31, 2015
Revenues in the EMEA area came to Euro 9,805 thousand in the first three months of 2015 (vs. Euro 8,947
thousand in the first three months of 2014), up Euro 858 thousand (+9.6%) compared to the same period
of the previous year, while net of the items not directly related to our core business, the growth in revenues
would rise to 9.7%. This growth was mainly driven by an increase in sales volumes for all channels and the
change in the distribution model, including mainly the German model.
Sales in the Americas area increased by Euro 2,767 thousand (+42%) compared to the previous period.
This increase, which would have been 16.8% at constant exchange rate, is mainly due to the growth in sales
volumes and the change in the distribution model.
Finally, the APAC area posted an increase of Euro 2,166 thousand (+119.1%) which, net of the items not
directly related to our core business, would have been 119.7%. Net of the exchange rate effect, this growth
would have been 80.7% mainly attributable to the wholesale channel, in particular in the Hong Kong and
Japanese markets, as well as the B2B channel, also due to the utilization of a new distributor in Japan.
In the Retail channel there has been a significant increase in volumes related to revenues generated mainly
from the new stores opened in the second half of 2014.
The following is a breakdown of adjusted revenues at current and constant exchange rates by geographical
area.
AMERICAS
+42%
+16.8%
EMEA
APAC
+9.7%
+119.7%
+9.3%
+80.7%
CURRENT
EXCHANGE RATE
CONSTANT
EXCHANGE RATE
+33.5%
+19.7%
28
Interim Management Report as of March 31, 2015
REVENUES BY DISTRIBUTION CHANNEL
The following tables show the breakdown by distribution channel of revenues and adjusted revenues for the
three months ended March 31, 2015 and 2014.
In thousands of Euro
Period ended March 31,
Change
Revenues by distribution channel
2015 %
2014 %
2015 Vs
2014 %
Wholesale
B2B
e-Commerce
Retail
15,251
4,073
1,198
2,621
65.5%
17.7%
5.2%
11.3%
11,552
3,347
980
1,472
66.5%
19.3%
5.6%
8.5%
3,699
726
218
1,149
32.0%
21.7%
22.2%
78.1%
Total Revenues
23,142
In thousands of Euro
100.0%
17,351
100.0%
Period ended March 31,
5,791
33.4%
Change
Adjusted Revenues by distribution
channel
2015 %
2014 %
2015 Vs
2014 %
Wholesale
B2B
e-Commerce
Retail
15,233
4,073
1,198
2,621
65.9%
17.6%
5.2%
11.3%
11,517
3,354
980
1,471
66.5%
19.4%
5.7%
8.5%
3,716
719
218
1,150
32.3%
21.4%
22.2%
78.2%
Total Adjusted Revenues
23,125
100.0%
17,322
100.0%
5,803
33.5%
ADJUSTED REVENUES BY DISTRIBUTION CHANNEL
Wholesale
B2B
Retail
e-Commerce
25,000
23,125
15,233
20,000
17,322
11,517
15,000
10,000
5,000
3,354
4,073
1,198
2,621
1,471
980
0
2015
2014
000
29
Interim Management Report as of March 31, 2015
Revenues through the Wholesale channel increased by Euro 3,699 thousand (+32%), from Euro 11,552
thousand in the first three months of 2014 to Euro 15,251 thousand in the first three months of 2015. Net of
the items not directly related to ourcore business, the increase was 32.3%. This increase was helped by the
strategic initiatives implemented in 2014 to strengthen the distribution platform and the favorable trend in
Euro/USD and Euro/HKD exchange rates.
Revenues through the B2B channel increased by Euro 726 thousand (+ 21.7%), from Euro 3,347 thousand in
the first three months of 2014 to Euro 4,073 thousand in the first three months of 2015. Net of the items not
directly related to our core business, this increase was 21.4%.
This increase is mainly due to good performance in the APAC area and the positive effect of the aforementioned
exchange rates.
Revenues through the e-Commerce channel went from Euro 980 thousand in the first three months of 2014
to Euro 1,198 thousand in the first three months of 2015 for an increase of 22,2%, also net of the items not
directly related to our core business. This increase is primarily attributable to the positive effects resulting
from the new provider in the EMEA area becoming fully operational as well as the positive effect of the
exchange rates referred to above.
Revenues generated through the retail channel increased by Euro 1,149 thousand, from Euro 1,472 thousand
in the first three months of 2014 to Euro 2,621 thousand in the first three months of 2015 (+78.1%), while net
of the items not directly related to our core business, the growth in revenues was 78.2%. The key driving force
behind the growth in this channel was the further expansion of stores through the 12 new “net” openings
taking place during the first quarter of 2015 (24 openings and 12 closings including 7 temporary stores used
to test the new concept stores).
30
Interim Management Report as of March 31, 2015
ADJUSTED REVENUES BY DISTRIBUTION CHANNEL
Wholesale
B2B
Retail
e-Commerce
25,000
23,125
15,233
20,000
REVENUES BY PRODUCT LINE
17,322
11,517
The following tables show the breakdown of revenues and adjusted revenues by product line for the three
15,000
months
ended March 31, 2015 and 2014.
10,000
In thousands of Euro
Period ended March 31,
Revenues by product line
Paper collection
5,000
WTR collection
4,073
1,198
Total Revenues
Change
2015 %
2014 %
2015 Vs 2014 %
21,048
2,094
91.0%
9.0%
15,721
1,630
90.6%
9.4%
5,327
464
33.9%
28.5%
23,142
2,621 100.0%
3,354
17,351
980
100.0%
1,471
5,791
33.4%
0
2015
2014
000
In thousands of Euro
Period ended March 31,
Change
Adjusted Revenues by product line
2015 %
2014 %
2015 Vs 2014 %
Paper collection
WTR collection
21,033
2,092
91.0%
9.0%
15,695
1,627
90.6%
9.4%
5,338
465
34.0%
28.6%
Total Adjusted Revenues
23,125
100.0%
17,322
100.0%
5,803
33.5%
ADJUSTED REVENUES BY PRODUCT LINE
25,000
23,125
,
21,033
20,000
WTR Collection
Paper Collection
17,322
15,695
15,000
10,000
5,000
2,092
0
2015
1,627
2014
000
000
31
Interim Management Report as of March 31, 2015
PAPER COLLECTION
During the first three months of 2015, the Group continued developing the Paper Collection with the launch
of new products and, in particular, the new Chapters Collection.
Revenues generated by the Paper Collections increased by 33.9%, while net of the items not directly related
to our core business, the increase in revenues was 34%.
WTR COLLECTION
With regard to the WTR collection, in the first three months of 2015 the Group expanded its range of myCloud
bags and entered a new segment by launching two models of Device Bags designed to transport digital tools.
In the first quarter of 2015, the revenues generated by the WTR Collections rose by 28.5% (28.6% net of the
items not directly related to our core business), recording significant growth despite the fact that the first
quarter of 2014 benefitted from the launch of the myCloud bags and Writing collections.
Other income, equal to Euro 3,919 thousands as at March 31, 2015, includes mainly realized and unrealized
foreign currency gains, resulting from fluctuations in exchange rates that impact on the Balance Sheet of the
Group, mainly on the Commercial Working Capital, that as at March 31, 2015 amounts to EUR 3,908 thousand.
This positive effect, which on one hand shows the volatility of the exchange rates of Euro against US dollar
and the currencies anchored to it, on the other hand it is partially offset by the impact of the exchange rate
included in the change in inventories of the goods purchased in foreign currency (among the cost of finished
goods, raw materials and consumables), amounting to Euro 2,511 thousand, as well as the foreign currency
losses, realized and unrealized, accounted in Other operating costs of Euro 766 thousand. Therefore the “net”
positive effect of the fluctuations in exchange rates reflected in the income statement of the Group is equal to
Euro 631 thousand.
32
Interim Management Report as of March 31, 2015
OPERATING RESULTS
The following table provides a breakdown of the operational profitability indicators EBITDA and EBIT and
their respective adjusted figures:
In thousands of Euro and percentage of revenues
Operating income (EBIT)
+ Depreciation, amortization and impairments
EBITDA (*)
+ Total activities which are not directly related to the ordinary business
Adjusted EBITDA
as % of adjusted revenues
Adjusted Operating income (EBIT)
as % of adjusted revenues
Period ended March 31,
2015
2014
3,753
1,126
4,879
381
5,260
22.7%
4,134
17.9%
2,327
894
3,221
293
3,514
20.3%
2,620
15.1%
(*) The Group defines EBITDA as operating income (EBIT) before depreciation, amortization and impairment of non-current assets. EBITDA is not recognized as
a measure of financial performance or liquidity under IFRS; therefore, it should not be considered an alternative measure for assessing the performance of
Group operating income. Since the method for calculating EBITDA is not governed by reference accounting standards, the method applied by the Group may
not be the same as that adopted by others and therefore may not be comparable.
EBITDA grew 51.5%, from Euro 3,221 thousand in the first three months of 2014 to Euro 4,879 thousand in
the first three months of 2015.
Adjusted EBITDA came to Euro 5,260 thousand, equal to 22.7% of the adjusted revenues, up 49.7% from the
same period last year and 2.4% in percentage points in terms of impact on the adjusted revenues compared
to the first three months of 2014.
As regards the percentage of adjusted EBITDA on adjusted revenues, analyzing the trend at constant exchange
rates, it is in line with the same period last year.
Net of the exchange rate effect, the growth in adjusted EBITDA is mainly attributable to the increase in
revenues and to the strategic investment decisions made in 2014 to support the growth.
Operating income (EBIT), affected by the above factors, as well as by the increase in depreciation and
amortization in the first quarter of 2015, related to the investments made in order to increase the size of the
organization and expand the direct channels, went from the Euro 2,327 thousand in the first three months of
2014 to Euro 3,753 thousand in the first three months of 2015. Excluding the costs not directly related to our
core business, adjusted EBIT came to Euro 4,134 thousand in the first three months of 2015 (vs. Euro 2,620
thousand in the first three months of 2014).
33
Interim Management Report as of March 31, 2015
Below is a combined analysis of costs for finished products, raw materials and consumables and the costs for
external processing for the three month period ended March 31, 2015 and 2014. This approach is used for a
better understanding of the dynamics through which these costs accrue and their impact.
In thousands of Euro and percentage of revenues
Period ended March 31,
2015
%
2014
%
Finished products, raw materials and consumables
(6,616)
(28.6%)
(3,798)
(21.9%)
Total
(6,886)
(29.8%)
(4,250)
(24.5%)
Processing costs
(270)
(1.2%)
(452)
(2.6%)
Considering the trend of the two cost items together, they had a greater impact on revenues compared to the
previous period (24.5% in 2014 and 29.8% in 2015). This impact is affected by the negative impact of exchange
rates on sales costs, without which an improvement would have been recorded due to the positive effect on
the channel mix resulting from the greater weight of the direct channels as well as the benefit resulting from
the change in the distribution models in the wholesale channel mentioned above.
34
Interim Management Report as of March 31, 2015
NET INCOME
The improvement in net income is mainly due to the growth factors highlighted above in the analysis on the
operating results in addition to the positive financial impact of exchange rates. In addition, borrowing costs
have dropped due to improvements in the contractual conditions related to the refinancing operations in
2014.
35
Interim Management Report as of March 31, 2015
ANALYSIS OF FINANCIAL POSITION
NET WORKING CAPITAL
The breakdown of the Group’s net working capital as of March 31, 2015, December 31, 2014, and March 31,
2014, is provided below:
In thousands of Euro
As of
March 31, 2015
December 31, 2014
March 31, 2014
Inventories
Trade receivables
Trade payables
20,559
23,223
(19,300)
15,785
22,798
(17,754)
17,701
16,997
(14,995)
Other items of Trade Working Capital (B)
(3,312)
(641)
(1,315)
Trade Working Capital (A)
Other current assets
Income tax payables
Income tax receivables
Other current liabilities
Net Working Capital (A + B)
24,482
20,829
2,418
(819)
(4,911)
1,798
2,081
(4,520)
21,170
20,188
19,703
994
1,024
(3,333)
18,388
The cyclical nature mentioned above should be taken into consideration to better understand the main
changes in net working capital. Therefore, the remarks comparing the figures at March 31, 2015, and at the
same date of 2014 are provided below.
The impact of individual items on sales in the past 12 months should also be considered in an analysis of trade
working capital trends as shown below.
In thousands of Euro
As of
Sources and Uses of resources
March 31, 2015 %
March 31, 2014 %
Sources
Inventories
Trade receivables
Trade payables
20,559
23,223
(19,300)
17,701
16,997
(14,995)
Trade Working Capital (A)
Adjusted revenues LTM
24,482
104,473
19.7%
22.2%
(18.5%)
23.4%
19,703
88,089
20.1%
19.3%
(17.0%)
22.4%
The slight increase (compared to March 31, 2014) of the percentages on adjusted revenues regarding the
previous 12 months is basically due to the foreign exchange effect.
Excluding this effect, this value is in line with the results for the same period last year.
36
Interim Management Report as of March 31, 2015
As regards the growth in absolute value of the net trade working capital, excluding the foreign exchange
effects, it is for the most part attributable to the growth in business and the different sales schedule of the
quarter compared to the same period in 2014.
CAPITAL EXPENDITURES
Capital expenditures on tangible assets for the three months ended March 31, 2015, in the amount of Euro 333
thousand, relate primarily to the investments in the retail channel and to support growth of the organization
structure of the Group.
Capital expenditures on intangible assets (excluding the item “Goodwill and trademarks”) for the three months
ended March 31, 2015, in the amount of Euro 238 thousand, relate primarily to the implementations and
developments of software programs as well as projects underway to change of the Group’s information system.
With reference to the three months ended March 31, 2014, the capital expenditures on tangible assets, in
the amount of Euro 423 thousand, relate primarily to the new installations of in-store exhibition structures,
the setting up of new stores, the purchase of hardware and molds for the new WTR products, while the
capital expenditures on intangible assets, in the amount of Euro 288 thousand, relate primarily to the data
warehousing and business intelligence project which is currently underway.
NET FINANCIAL INDEBTEDNESS
The following table shows a breakdown of net financial indebtedness as of March 31, 2015 and December 31,
2014, calculated in accordance with CONSOB Regulation No. 6064293 of July 28, 2006, and the ESMA/2011/81
Recommendations:
In thousands of Euro
As of March 31
As of December 31
Net Financial indebtness
2015
2014
A
B
C
Cash and cash equivalents
Other cash equivalents
Available-for-sales financial assets
18,109
6,000
-
17,353
6,000
-
F
G
H
Short term loans
Long term loans (current portion)
Othe current financial payables
(4,856)
(299)
(4,856)
(169)
K Long term loans (non-current portion)
L Issued bonds
M Othe non-current financial payables
(22,964)
-
(22,947)
-
D
E
I
J
Cash (A) + (B) + (C)
Short term financial receivables
Current financial position (F) + (G) + (H)
Net current financial position (I) + (E) + (D)
N
Non-current financial position (K) + (L) + (M)
O
Net financial position (J) + (N)
24,109
-
(5,155)
18,954
(22,964)
(4,010)
23,353
-
(5,025)
18,328
(22,947)
(4,619)
Net financial indebtedness, as of March 31, 2015, was down Euro 609 thousand compared to December 31, 2014.
37
Interim Management Report as of March 31, 2015
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
The shareholders of the group holding company, at their meeting held on April 15, approved the separate financial
statements of Moleskine S.p.A. as of December 31, 2014, and resolved to allocate the profit for the year, in the amount
of Euro 17,970,946 as follows:
n
n
n
n
Euro 360 as legal reserve;
Euro 2,114,650 as unrealized exchange gains;
Euro 7,000,00 as dividends;
Euro 8,855,936 as retained earnings.
The shareholders therefore approved the distribution of a gross dividend of Euro 0.033 per share for a total
amount of Euro 7,000,000.00. The ex-dividend date was April 20, 2015, with record date on April 21, 2015
and the payable date on April 22, 2015.
During this meeting, the shareholders also approved the authorization for the purchase and disposal of treasury
shares, pursuant to Articles 2357 and 2357 ter of the Italian Civil Code and Article 132 of Legislative Decree
58/1998 and the related implementing provisions. The authorization for the purchase and disposal of treasury
shares has the objective to provide the Company with a strategic investment opportunity to be used for purposes
permitted by applicable laws and, including the purposes set out in the “market practices” permitted by CONSOB,
pursuant to Article180.1 let. c), of the Consolidated Law on Finance by resolution no. 16839 of March 19, 2009
and in Regulation (EC) no. 2273/2003 of December 22, 2013, and therefore, also for share incentive plans.
Authorization was granted for the purchase, in one or more tranches, of ordinary Moleskine shares with no
par value specified, up to a maximum number no greater than the maximum limit permitted by applicable
laws in force at the time of purchase, taking into consideration the ordinary Moleskine shares held in the
portfolio at any given time by the Group holding company or its subsidiaries (this limit is set at one fifth of the
share capital according to Article 2357(3) of the Italian Civil Code).
The Board of Directors has been given mandate to identify the amount of shares to be purchased in relation to
each of the above purposes prior to the start of each individual purchase program, and at a purchase price not
exceeding the higher of the price of the last independent transaction and the current independent bid price in
the trading venues where the purchase will be made. Notwithstanding the foregoing, the price paid may not
exceed a price per unit of more than 15% below or more than 15% above the arithmetic average of official
Moleskine share prices over the ten days preceding each purchase transaction.
The Shareholders Meeting has furthermore authorized the Board of Directors, pursuant to and for the purposes of
Article2357-ter of the Civil Code, that they may dispose, at any time, in whole or in part, in one or more tranches, of
the treasury shares purchased pursuant to today’s resolution, or in any case in the Company’s portfolio, by selling
them in or out the stock exchange, also by means of assignment of real and/or personal rights, including but not
limited to, the loan of securities in compliance with the pro tempore laws and regulations in force and for the pursuit
of the purposes pursuant to this resolution. The authorization for the purchase was granted for a period of 18 months
from the date of the resolution. The authorization for disposal of treasury shares was granted without a time limit.
Another significant event after the quarter was the cooperation agreement signed with Driade, a leading
company and historical brand in the design industry, to develop a capsule collection of objects combining the
aesthetic values of Moleskine and Driade’s excellence in design.
Finally, please note that on April 28, 2015, the Holding Company Moleskine S.p.A., in order to optimize its
financial position, has entered in a medium term loan agreement with Banca Nazionale del Lavoro for a total
sum of Euro 20 million in order to support company’s strategies.
38
Interim Management Report as of March 31, 2015
BUSINESS OUTLOOK
Based on the results achieved as of March 31, 2015, and on market trends currently under way, the forecasts
for the full year 2015 remain valid and we expect to post revenues of between Euro 115 and 120 million and
adjusted EBITDA of between Euro 37 and 38 million, at constant exchange rates.
39
Interim Management Report as of March 31, 2015
PRINCIPLES APPLIED IN PREPARING THE INTERIM REPORT
The Group’s interim management report as of March 31, 2015, was prepared in accordance with Article 154ter, paragraph 5, of the Consolidated Law on Finance (“TUF”), introduced by Italian Legislative Decree no.
195/2007 in implementation of Directive 2004/109/EC. This interim management report was approved by
the Moleskine S.p.A. Board of Directors on May 6, 2015, at which time the board also approved its publication.
The Group’s interim management report as of March 31, 2015, has not been submitted for an independent
audit.
40
Interim Management Report as of March 31, 2015
ACCOUNTING STANDARDS AND CONSOLIDATION PRINCIPLES
The accounting standards followed in preparing the financial statements for the period ended March 31, 2015,
include the International Accounting Standards (IAS), the International Financial Reporting Standards (IFRS),
and related interpretations as issued by the IASB and endorsed by the European Union as of the reporting
date of this document.
The accounting standards and consolidation principles adopted for the purpose of preparing the interim
management report as of March 31, 2015, are the same as those adopted for the consolidated financial statements
as of December 31, 2014, which should be referred to for complete information, with the exception of:
1. income tax expense, which is recognized based on the best estimate of the weighted-average rate expected
for the entire year;
2. the elements noted in the principles and amendments indicated below, which are applicable as of January 1,
2015, as they became compulsory following completion of the endorsement procedures by the competent
authorities.
These principles have been adopted solely for the financial statements as of March 31, 2015, and not applied
in their entirety to the disclosures required under these principles.
The preparation of this interim report requires that management make certain estimates and assumptions
that have an impact on revenues and costs, assets and liabilities, and on the disclosures related to contingent
assets and liabilities as of the date of this interim report. Although based on the best knowledge available
to management, should these estimates and assumptions prove to differ in the future from the actual
circumstances, they will be appropriately adjusted in the period in which such circumstances arise.
41
Interim Management Report as of March 31, 2015
Accounting standards, amendments and interpretations applied as of January 1,
2015
There are no new or revised principles of the International Accounting Standards Board (IASB) and
interpretations of the International Financial Reporting Interpretations Committee (IFRIC), which must be
applied beginning on January 1, 2014, and therefore they were already adopted in the financial statements as
of December 31, 2014.
Description
Endorsed as of the date of Effective date stated in the standard
this document
IFRS 10, ‘Consolidated financial statements’
December 2012
Financial years beginning on or after January 1, 2014
December 2012
Financial years beginning on or after January 1, 2014
IFRS 11, ‘Joint arrangements’
IFRS 12, ‘Disclosures of interests in other entities’
Amendments to IFRS 10, 11 and 12 on transition
guidance
IAS 27 (revised 2011) ‘Separate financial
statements’
IAS 28 (revised 2011) ‘Associates and joint
ventures’
Amendment to IAS 32, ‘Financial instruments:
Presentation’, on offsetting financial assets and
financial liabilities
December 2012
April 2013
December 2012
December 2012
December 2012
Financial years beginning on or after January 1, 2014
Financial years beginning on or after January 1, 2014
Financial years beginning on or after January 1, 2014
Financial years beginning on or after January 1, 2014
Financial years beginning on or after January 1, 2014
Amendments to IFRS 10, Consolidated financial
statements’, IFRS 12 and IAS 27 for investment
entities
November 2013
Financial years beginning on or after January 1, 2014
Amendments to IAS 36, ‘Impairment of assets’
December 2013
Financial years beginning on or after January 1, 2014
June 2014
Financial years beginning on or after January 1, 2014
Amendment to IAS 39 ‘Financial instruments:
Recognition and measurement’, on novation of
derivatives and hedge accounting
IFRIC 21 ‘Levies’’
December 2013
Financial years beginning on or after January 1, 2014
42
Interim Management Report as of March 31, 2015
New accounting standards, interpretations and amendments not yet applicable or not yet adopted by
the Group
The table below shows the international accounting standards, interpretations, amendments to existing
accounting standards and interpretations, or specific provisions included in standards or interpretations of
the IASB, with an indication of those which have and have not been adopted for use in Europe at the date of
these financial statements:
Description
Endorsed as of the date of Effective date stated in the standard
this document
Annual Improvements to IFRSs 2012–2014 Cycle
No
Financial years beginning on or after January 1, 2016
No
Financial years beginning on or after January 1, 2016
Amendment to IAS 16 ‘Property, plant and
equipment’ and IAS 38 ‘Intangible assets’
Amendment to IFRS 11, ‘Joint arrangements’ on
acquisition of an interest in a joint operation
IFRS 14 ‘Regulatory deferral accounts’
Amendment to IAS 16, ‘Property, plant and
equipment’, and IAS 41, ‘Agriculture’, regarding
bearer plants
Amendments to IAS 27, ‘Separate financial
statements’ on the equity method
Amendments to IAS 1: Disclosure Initiative
Amendments to IFRS 10, IFRS 12 and IAS 28:
Investment Entities:Applying the Consolidation
Exception
No
No
No
Financial years beginning on or after January 1, 2016
Financial years beginning on or after January 1, 2016
Financial years beginning on or after January 1, 2016
No
Financial years beginning on or after January 1, 2016
No
Financial years beginning on or after January 1, 2016
No
Financial years beginning on or after January 1, 2016
Amendments to IFRS 10, ‘Consolidated financial
No
statements’ and IAS 28, ‘Investments in associates
and joint ventures’
Financial years beginning on or after January 1, 2016
IFRS 15 ‘Revenue from contracts with customers’
Financial years beginning on or after January 1, 2017
IFRS 9 ‘Financial instruments’
No
No
Financial years beginning on or after January 1, 2018
The Group did not early adopt any accounting standards and/or interpretations whose application is
obligatory for periods commencing subsequent to March 31, 2015.
The Group is assessing the effects of the application of the new standards and amendments above, which are
currently not considered to be material.
43
Interim Management Report as of March 31, 2015
RELATED-PARTY TRANSACTIONS
As of March 31, 2015, there were no other transactions with related parties that were atypical in terms of their
characteristics or significant in terms of their amount, other than those that are of a recurring nature.
44
Financial
Statements
02
Interim Management Report as of March 31, 2015
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As of March, 31
In thousands of Euro
2015
Property, plant and equipment
Goodwill and trademarks
Other intangible assets
Other non-current assets
Deferred tax assets
6,363
76,864
4,090
2,012
5,243
6,306
76,859
4,236
2,127
3,487
Total current assets
70,309
65,815
Total non current assets
Inventories
Trade receivables
Income tax receivables
Other current assets
Cash and cash equivalents
TOTAL ASSETS
Share capital
Other reserves
Net income
TOTAL NET EQUITY
Non-current financial liabilities
Other non-current liabilities
Deferred tax liabilities
Post-employment and other employee benefits
Non-current provisions for risks and charges
Total non current liabilities
Trade payables
Income tax payables
Current financial liabilities
Current provisions for risks and charges
Other current liabilities
Total current liabilities
TOTAL LIABILITIES
TOTAL LIABILITIES AND EQUITY
of which with
related parties
As of December, 31
94,572
15,785
22,798
2,081
1,798
23,353
164,881
158,830
92,384
22,964
17,075
1,755
-
41,794
19,300
819
5,155
518
4,911
30,703
72,497
164,881
of which with
related parties
93,015
20,559
23,223
2,418
24,109
2,122
87,468
2,794
2014
2,122
70,413
16,525
89,060
57
320
24
26
162
22,947
170
17,102
1,802
-
42,021
17,754
5,025
450
4,520
27,749
69,770
65
103
438
-
31
175
158,830
46
Interim Management Report as of March 31, 2015
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Period ended March 31,
In thousands of Euro
2015
Revenues
Other income
Finished products, raw materials and consumables
Service costs
Personnel costs
Other operating expenses
Depreciation, amortization and impairments
Operating profit
23,142
3,919
(6,616)
(8,865)
(4,977)
(1,724)
(1,126)
Finance expense
Finance income
Profit before income tax
(220)
637
Income tax expense
Net profit
(1,376)
2,794
(598)
EARNINGS FOR SHARE
Basic (euro)
Diluted (euro) (*)
0.013
0.013
0.005
0.005
-
98
(27)
514
54
Other comprehensive income
- items that may be reclassified subsequently to profit or loss:
Fair value cash flow hedge derivatives
Fair value cash flow hedge derivatives – tax effect
Foreign exchange from the translation of fin stat in currencies other than
Euro
Total items that may be reclassified subsequently to profit or loss
3,753
4,170
of which with 2014
related parties
(29)
(722)
(30)
(13)
514
‐ items that will not be reclassified to profit or loss:
Actuarial gain/losses on post-employment and other employee benefits
(62)
Actuarial gain/losses on post-employment and other employee benefits-tax
effect
20
17,351
40
(3,798)
(6,250)
(3,849)
(273)
(894)
2,327
(577)
14
1,764
of which with
related parties
(16)
(895)
(38)
(10)
1,166
(17)
4
Total items that will not be reclassified to profit or loss
(42)
(1)
Other comprehensive income
472
57
Total comprehensive income for the period
3,266
1,223
3
(*) There are no significant diluted effects and, therefore, diluted earnings per share coincides with basic earnings per share.
47
Interim Management Report as of March 31, 2015
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
In thousands of Euro
Cash flow from operating activities before movements in working capital
Cash flow from operating activities
Cash flow used in investing activities
Cash flow used in financing activities
Change in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Exchange differences in cash and cash equivalents
Cash and cash equivalents at the end of the period
Three months ended March 31,
2015
2014 (*)
4,156
370
(571)
(47)
3,989
1,137
(711)
(4,624)
(248)
23,353
1,004
24,109
(4,198)
5,750
(159)
1,393
(*) For a better comparability of data, the net cash flow of the period ended at 31/03/2014 has be reclassified highlighting the exchange rate differences in cash.
48
Interim Management Report as of March 31, 2015
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
In thousands of Euro
Share
capital
Share
premium
reserve
Translation Cash Flow Other
Net profit
Reserve
Hedge
reserves
Reserve
Total Equity
As of December 31, 2014
2,122
90,406
338
89,060
Net income for the period
Currency translation reserve
Cash flow hedge reserve changes
Actuarial gain on post−employment
and other employee benefits
Comprehensive income for the
period
Allocation of net income 2014
Incentives for management
-
(20,331) 16,525
2,794
515
515
(43)
57
57
90,406
853
In thousands of Euro
Share
capital
Share
premium
reserve
Translation Cash Flow Other
Net profit
Reserve
Hedge
reserves
Reserve
Total Equity
As of December 31, 2012
2,120
90,406
(120)
71,544
As of March 31, 2014
(18)
2,120
90,406
71
2,794
3,266
-
2,122
(142)
(3,792)
2,794
(16,525)
(43)
As of March 31, 2015
Net income for the period
Currency translation reserve
Cash flow hedge reserve changes
Actuarial gain on post−employment
and other employee benefits
Comprehensive income for the
period
Allocation of net income 2013
Incentives for management
-
(43)
16,525
2,794
515
-
(32,633) 11,913
1,166
(18)
71
3
(138)
(71)
(20,501) 1,166
3
11,913
216
1,166
(11,913)
92,383
1,166
(18)
71
3
1,222
216
72,982
49
Statement
pursuant to article 154 (2)-bis
of the TUF
03
Interim Management Report as of March 31, 2015
STATEMENT PURSUANT TO ARTICLE 154 (2)-BIS OF THE TUF
In accordance with Article 154-bis, paragraph 2, of the Consolidated Law on Finance (“TUF”), the Executive
Officer in charge of the financial reports hereby declares that the financial information provided herein
corresponds to the underlying accounting entries and records.
Alessandro Strati
Executive Officer in
charge of
the financial reports
51