YOOX S.P.A. REPORTS 2014 NINE-MONTH RESULTS TO 30 SEPTEMBER 2014 NET REVENUES

PRESS RELEASE
YOOX S.P.A. REPORTS 2014 NINE-MONTH RESULTS TO 30 SEPTEMBER 2014
NET REVENUES +18% AT CONSTANT EXCHANGE RATES, EBITDA +26%, NET INCOME +30%
 Net revenues at Euro 366.3 million, +14.7% (+17.9% at constant exchange rates) compared with 319.3 million
in the first nine months of 2013. Multi-brand net revenues +21.5% at constant exchange rates; Mono-brand
gross merchandise value +18.7% at constant exchange rates
 EBITDA at Euro 27.1 million, +26.3% compared with 21.5 million in the first nine months of 2013, with a 7.4%
margin, up from 6.7% in 2013. EBITDA Excluding Incentive Plan Costs at Euro 28.1 million compared with
25.3 million in the first nine months of 2013, with a margin at 7.7%
 Net income at Euro 4.6 million, +29.6% compared with 3.5 million in the first nine months of 2013
 Net financial position positive at Euro 3.1 million, compared with 20.5 million at 31 December 2013
 14.1 million average number of monthly unique visitors, compared with 12.5 million in the first nine months
of 2013
 2.4 million orders, compared with 2.0 in the first nine months of 2013
 Euro 198 Average Order Value (Euro 203 at constant exchange rates), compared with Euro 213 in the first nine
months of 2013
 1.2 million active customers, compared with 1.0 million at 30 September 2013
“In these first nine months YOOX has once more achieved solid revenue growth and improved profitability, despite
the headwinds that marked 2014” commented Federico Marchetti, Founder and CEO of YOOX Group.
“We are moving full speed ahead into the most important quarter of the year, counting on the quality of the initiatives
that have been carefully planned for this Christmas campaign, and the team’s intense focus on successfully achieving
our targets”.
Milan, 5 November 2014 - The Board of Directors of YOOX S.p.A. (MTA, STAR: YOOX), the global Internet retailing
partner for leading fashion and design brands, which met today, examined and approved the consolidated interim
financial statements for the nine months ended 30 September 2014.
Note: For clarity of information, the percentage changes reported in this press release have been calculated using exact figures. Any differences found in some of the
tables are due to the rounding of values expressed in millions of Euros.
1
THE GROUP’S PERFORMANCE IN THE FIRST NINE MONTHS OF 2014
Key performance indicators
1
2
Monthly unique visitors (millions)
Orders (millions)
3
AOV (Euro)
4
Active customers (millions)
9M 2014
9M 2013
14.1
2.4
198
1.2
12.5
2.0
213
1.0
In the first nine months of 2014, the Group recorded a monthly average of 14.1 million unique visitors, which
translated to 2.4 million orders, an increase of 22.0% from 2.0 million in the same period of the previous year. The
Average Order Value (AOV) excluding VAT came in at Euro 203 at constant exchange rates (Euro 198 at current
exchange rates).
The number of active clients also increased to 1.2 million at 30 September 2014, compared with 1 million at 30
September 2013.
Consolidated net revenues
In the first nine months of 2014, YOOX Group posted consolidated net revenues, net of returns and customer
discounts, of Euro 366.3 million, up 14.7% (+17.9% at constant exchange rates) from Euro 319.3 million at 30
September 2013.
Consolidated net revenues by business line
9M 2014
%
9M 2013
%
Change %
current FX
Change %
constant FX
Multi-brand
270.7
73.9%
230.0
72.0%
+17.7%
+21.5%
Mono-brand
Total YOOX Group
95.6 26.1%
366.3 100.0%
89.3
319.3
28.0%
100.0%
+7.1%
+14.7%
+8.6%
+17.9%
€ million
Multi-brand
The Multi-brand business line, which includes yoox.com, thecorner.com and shoescribe.com, posted consolidated
net revenues of Euro 270.7 million, up 17.7% (+21.5% at constant exchange rates) from Euro 230.0 million in the
first nine months of 2013, thanks to the positive results of all three online stores. During the period, yoox.com
recorded a significant acceleration in the growth of new customers compared to the previous year, with substantially
stable acquisition costs, as well as steadily rising retention rates.
In the second half of September, yoox.com unveiled the area dedicated to fashion and lifestyle sportswear featuring
numerous exclusive collaborations with famous designers and brands, such as Adidas by Stella McCartney, Adidas
by Porsche Design, BWGH for Puma, some of the most well-known international brands like Nike, Under Armour,
Oakley, Patagonia, Puma, Reebok, The North Face, as well as niche labels such as Drop of Mindfulness, Lucas
Hugh and NO KA ‟OI. The brand portfolio, which from the outset already offered a rich selection, will continue to be
constantly enhanced.
Overall, at 30 September 2014, the Multi-brand business line accounted for 73.9% of the Group‟s consolidated net
revenues.
1
Key performance indicators refer to yoox.com, thecorner.com, shoescribe.com and the other mono-brand online stores “Powered by YOOX Group”. Key performance
indicators related to the joint venture with Kering are excluded.
2
Monthly unique visitor is defined as a visitor who opened at least one browser session to visit the online store over the month. The figure reported is calculated as the
average of monthly unique visitors for the reporting period. Source: SiteCatalyst for yoox.com; Google Analytics for thecorner.com, shoescribe.com and the mono-brand
online stores "Powered by YOOX Group".
3
Average Order Value, or AOV, indicates the average value of all orders placed, excluding VAT.
4
Active customer is defined as a customer who placed at least one order during the 12 preceding months.
2
Mono-brand
Change 9M 2014 vs. 9M 2013
current FX
constant FX
5
+16.3%
+18.7%
Consolidated net revenues
+7.1%
+8.6%
Gross merchandise value
The Mono-brand business line includes the design, set-up and management of the online stores of some of the
leading global fashion and luxury brands.
In the first nine months of 2014, this business line posted consolidated net revenues of Euro 95.6 million, up 7.1%
(+8.6% at constant exchange rates), compared with 89.3 million in the same period of 2013, while gross merchandise
5
value grew by 16.3% (+18.7% at constant exchange rates).
This business line reflects, on the one hand, the solid performance of the joint venture with Kering and of most of the
Mono-brand portfolio and, on the other hand, the lower results of a defined number of online stores and a smaller
6
business perimeter. Excluding this latter effect and at constant exchange rates, the Mono-brand business line would
have posted growth of 16.2%, while gross merchandise value would have been up 26.5%.
In addition, the Moncler online store was extended to the Japanese market in September 2014.
Overall, at 30 September 2014, the Mono-brand business line accounted for 26.1% of the Group‟s consolidated net
revenues with 36 online stores.
Consolidated net revenues by geographical area
€ million
Italy
9M 2014
%
9M 2013
%
Change %
current FX
Change %
constant FX
58.8
16.1%
47.5
14.9%
+23.8%
+23.8%
174.5
47.6%
152.7
47.8%
+14.3%
+17.3%
North America
78.2
21.4%
73.0
22.9%
+7.2%
+10.2%
Japan
28.0
7.6%
25.7
8.1%
+8.9%
+19.2%
Other Countries
19.8
5.4%
15.4
4.8%
+28.3%
+31.5%
6.9
1.9%
4.9
1.5%
+40.9%
+40.9%
366.3 100.0%
319.3
100.0%
+14.7%
+17.9%
Europe (excluding Italy)
Not country related
Total YOOX Group
In the first nine months of 2014, the Group recorded growth in all its key markets.
Excellent results were recorded by Italy, up 23.8% compared with the first nine months of 2013 to Euro 58.8 million
net revenues, and accelerating in the third quarter of the year (+25.5%) thanks to customers' constant trust in the
YOOX brand and the rising contribution to sales of smartphones and tablets - 19% higher than in the rest of the world.
This performance once again confirms YOOX's leadership in its domestic market, which is an extremely strategic
country for the Group given that it is the world's number one manufacturer of luxury goods and the third highest for
7
their consumption , thus offering a long-term competitive advantage. For this reason, the Group will continue to invest
in Italy, where it ran another TV campaign for yoox.com once again this year, with 50% of the advertisements aired on
prime time. Launched ahead of the all-important fourth quarter, the new TV ad has achieved excellent results so far,
with triple-digit growth in registered users compared with 2013, and a significant increase in new customers and visits,
driven by mobile.
5
Retail value of sales of all the mono-brand online stores, net of returns and customer discounts. Set-up, design and maintenance fees for the mono-brand online stores
accounted in “Not country related” are excluded.
6
The growth rate is calculated excluding the contribution of diesel.com in the US from the net revenues of the first nine months of 2013.
7
Source: “Altagamma 2014 Worldwide Markets Monitor” Presentation, Bain Altagamma, Milan, 14 October 2014
3
The rest of Europe also recorded positive performance, with growth of 14.3% (+17.3% at constant exchange rates)
in the first nine months of 2014. The main countries that contributed to the Group's revenues in Europe were France,
Germany, the UK - which all reported improved figures compared with the same period of the previous year - and
Russia, which is posting continuously improving growth rates month after month.
North America posted growth of 7.2% (+10.2% at constant exchange rates). This performance reflects the combined
effect of a smaller business perimeter and, in the third quarter, a very challenging comparison (+41.7% in the third
quarter of 2013), and a lower AOV due to the promotional activities supporting the Spring/Summer collection, which
was adversely affected by the unusually cold weather. Excluding the perimeter effect, and at constant exchange
8
rates, North America would have posted growth of 19.8% in the first nine months of the year.
Japan also recorded solid results, with net revenues up 19.2% at constant exchange rates (8.9% at current exchange
rates) compared with the first nine months of 2013, thanks to the marked acceleration in the third quarter of the
year (+21.0% at constant exchange rates, +15.3% at current exchange rates).
Lastly, the outstanding performance of Other countries continued, with growth of 28.3% (+31.5% at constant
exchange rates) in the first nine months of 2014, which accelerated in the third quarter (+40.8% at current exchange
rates, +42.8% at constant exchange rates). This performance was driven by yoox.com in China, which benefited from
the extension of its offer following the introduction of the complementary logistics set-up in February 2014.
EBITDA Pre Corporate Costs
In the first nine months of 2014, EBITDA Pre Corporate Costs came in at Euro 56.9 million, up 12.6% on the Euro
50.5 million at 30 September 2013, with a 15.5% margin compared with 15.8% in the same period of the previous
year. This result was due to the unfavourable impact of exchange rates at gross profit level, which was not entirely
offset by the greater efficiency of sales and marketing investments.
Multi-brand
€ million
EBITDA Pre Corporate Costs
% of business line net revenues
% change
Mono-brand
Group Total
9M 2014
9M 2013
9M 2014
9M 2013
9M 2014
9M 2013
37.4
13.8%
14.6%
32.7
14.2%
19.5
20.4%
9.1%
17.9
20.0%
56.9
15.5%
12.6%
50.5
15.8%
EBITDA Pre Corporate Costs in the Multi-brand business line came in at Euro 37.4 million, a 14.6% increase on
the figure of Euro 32.7 million in the first nine months of 2013, with an EBITDA margin at 13.8% compared with 14.2%
in 2013. This result reflects a lower gross margin, which was partly offset by the operating leverage on fulfillment and
sales and marketing costs. In particular, the gross margin performance reflected the unfavourable exchange rates
movements in the period, as well as, in the third quarter, higher delivery costs over net revenues due to the lower
AOV and greater promotional activities supporting the Spring/Summer collection, which was adversely affected by the
unusually cold weather in the US and some European countries.
EBITDA Pre Corporate Costs in the Mono-brand business line stood at Euro 19.5 million, a rise of 9.1% on the
Euro 17.9 million in the first nine months of 2013, with a 20.4% margin up from 20.0% of the previous year. This result
is mainly due to the improvement in the gross margin, which benefited from the positive contribution of the joint
venture with Kering, and the effectiveness of the dynamic and profit-driven management strategy of the mono-brand
portfolio.
8
The growth rate is calculated excluding the contribution of diesel.com in the US from the net revenues of the first nine months of 2013.
4
EBITDA
In the first nine months of 2014, EBITDA stood at Euro 27.1 million, a 26.3% increase compared with Euro 21.5
million in the same period of the previous year. The EBITDA margin was 7.4%, an improvement on the 6.7% in the
first nine months of 2013, thanks to strong operating leverage and lower non-cash costs relating to existing incentive
plans. EBITDA Excluding Incentive Plan Costs amounted to Euro 28.1 million, with a margin on net revenues of
7.7%.
Net income
Consolidated net income came in at Euro 4.6 million in the first nine months of 2014, up 29.6% on Euro 3.5 million
in 2013, reflecting the excellent performance achieved in the third quarter, when net income rose by 52.7%.
Profit for the first nine months of 2014 reflects the combined effect of an improved result from investment in
associates, lower financial expenses relating to exchange rate gains in the third quarter and a higher tax burden as a
percentage of sales. Taking out non-cash costs relating to existing incentive plans and the related tax effect, Net
Income Excluding Incentive Plan Costs came in at Euro 5.3 million.
Net working capital
Net working capital came in at Euro 51.0 million at 30 September 2014, compared with Euro 28.3 million at 31
December 2013. This change is mainly attributable to the seasonal nature of the business, which experiences a
customary increase in working capital in the third quarter, and is also due to the replenishment of stock ahead of the
holiday season along with earlier deliveries of the Spring/Summer collection of yoox.com as compared with
September 2013.
Investments
In the first nine months of 2014, the Group continued to invest in the innovation and consolidation of its global technologistics platform: capital expenditure amounted to Euro 25.5 million compared with Euro 26.5 million in the same
period of the previous year, with a percentage of net revenues at 7.0%, down from 8.3% of the previous year.
On 23 October, the Group launched a new smartphone native application for yoox.com on iOS and Android
operating systems. The new app, immediately localised into all of the Group's 11 languages, is also available for
the first time in China, thereby allowing yoox.cn to fully seize the enormous potential of this country. In fact, the
Chinese mobile commerce market, which already has more smartphone users than the United States, has grown
more than tenfold in the last two years, and boasts a greater propensity for mobile shopping, which is historically due
to the lower penetration of desktop Internet.
The new app was redesigned with immediacy and user-friendliness in mind to speed up small-screen navigation and
shopping, and has introduced functionalities and content aimed at improving user experience, as well as increasing
the conversion rate and AOV. Among the new functions, there is the option of logging in from the main social
networks, the possibility - thanks to geolocalisation - of discovering the products most frequently purchased in a given
city, along with the automatic capture of credit card details via photo scanning. Based on the evidence of the first few
weeks, the new native app is achieving excellent results in terms of traffic and sales compared with the previous
version, as well as a significant increase in browsing speed.
The Group also continued to implement on yoox.com new automated marketing functionalities designed to
automate, in the fourth quarter, the sending of personalised newsletters based on users' specific browsing behaviour
or on their specific actions such as, for example, cart abandonment.
Lastly, YOOX also continued with the roll-out of some cross-channel functionalities, allowing its Mono-brand
partners to offer their customers a fully integrated and seamless experience between their physical and their
virtual stores “Powered by YOOX”. Specifically, in select boutiques in Europe and the United States, some Brands
already offer their customers the possibility of shopping from the online catalogue from in-store iPads, collecting and
returning products bought online at the boutique, checking in-store product availability and reserving online items
5
which are available in the physical stores only, as well as booking an in-store appointment with a tailoring specialist
on the website.
Net financial position
At 30 September 2014, the Group‟s net financial position was positive at Euro 3.1 million, compared with Euro
20.5 million at 31 December 2013. This cash absorption is attributable to capital expenditure of Euro 25.5 million,
mainly for technological innovation, and to the increase in working capital, due mainly to the seasonal nature of the
business.
On 3 October 2014, YOOX obtained a new line of credit of Euro 45 million from the European Investment Bank,
which will be used to finance part of the already-announced 2014-2015 investment plan for technological innovation,
and will also allow the Group‟s average cost of debt to be reduced thanks to its highly competitive terms. This
agreement is part of YOOX's strategy to optimise its financial structure and will complement the credit lines that are
already available to finance capital expenditure and working capital peaks during the buying campaigns.
OVERVIEW OF THE THIRD QUARTER OF 2014
In the third quarter of 2014, the Group‟s consolidated net revenues came in at Euro 128.3 million, compared with
Euro 111.8 million in the same period of 2013, up 14.7% (+16.3% at constant exchange rates).
EBITDA Pre Corporate Costs amounted to Euro 18.7 million compared with Euro 17.1 million in the third quarter of
the previous year. The EBITDA margin was 14.6% compared with 15.3% in 2013, mainly reflecting the gross margin
performance, which reflected the unfavourable exchange rates movements, the promotional activities supporting the
Spring/Summer collection, which was adversely affected by the unusually cold weather, and the higher delivery costs
over net revenues due to the lower AOV. The gross margin performance was partly offset by the greater efficiency of
sales and marketing investments.
EBITDA came in at Euro 9.3 million, up by 16.9% compared with the Euro 7.9 million achieved in the third quarter of
2013. The EBITDA margin was 7.2%, an improvement on the 7.1% of the same period in the previous year, primarily
thanks to the greater efficiency of sales and marketing investments, the operating leverage on general and
administrative expenses and lower non-cash costs relating to incentive plans.
Consolidated net income came in at Euro 2.0 million, up 52.7% on the Euro 1.3 million in the third quarter of 2013.
This increase reflects an improved result from investment in associates and financial income relating to exchange rate
gains, which more than offset the higher tax burden as a percentage of sales.
SIGNIFICANT EVENTS AFTER 30 SEPTEMBER 2014
Mono-brand online stores
On 4 November 2014, Jeanne Lanvin S.A. and YOOX S.p.A. finalised a 5-year partnership for the set-up and
management of the Lanvin online store in Europe, the United States and in the main countries of the AsiaPacific region.
The new global release of valentino.com, whose graphic concept has been developed by YOOX's creative web
agency in collaboration with Valentino, has been launched today. The new valentino.com combines „experience‟ and
„e-commerce‟ within a single integrated website, which at launch was also localised into the local language and
payment systems in China, to improve Chinese customers' shopping experience. The dedicated online store for the
REDValentino brand was activated at the same time.
The number of the Mono-brand online stores managed by the Group has thus now reached 37.
6
Exercise of stock options
In the third quarter of 2014, a total of 800,228 ordinary shares were issued following the exercise of a total of 15,389
options relating to existing Stock Option Plans.
After 30 September 2014, a total of 104,312 ordinary shares were issued following the exercise of 2,006 options
relating to existing Stock Option Plans. As a result of the above, the new share capital issued by YOOX S.p.A. at
today‟s date is equal to Euro 597,048.40 divided into 59,704,840 ordinary shares with no indication of nominal value.
BUSINESS OUTLOOK
In light of the proven effectiveness of the YOOX business model worldwide, the results achieved in the first nine
months of the year and the quality of the commercial, marketing and technological initiatives that have been carefully
planned for the all-important Christmas campaign, it is reasonable to expect that YOOX Group will continue to see
growth in sales and profits in 2014.
Both business lines and all the Group‟s key markets are expected to positively contribute to this growth. In particular,
the last months of 2014 could benefit from an overall improvement in all of the most important currencies against the
Euro, with the exception of the Rouble; the Mono-brand business line could count on a substantially similar business
perimeter as in the same months of 2013, while the Multi-brand business line could benefit from all the initiatives
planned ahead of the Christmas season.
Investments in innovation and consolidation of YOOX‟s global techno-logistics platform will continue: in particular, the
Group plans to further strengthen its mobile offer and proceed with the roll-out of cross-channel features for an
increasing number of mono-brand partners, allowing them to provide their customers with a fully integrated and
seamless experience between their physical stores and the virtual ones “Powered by YOOX Group”.
Lastly, internal initiatives to improve efficiency and ensure tight cost control will continue.
***
Pursuant to Article 154-bis, paragraph 2 of the Italian Consolidated Law on Finance, Francesco Guidotti, the Director
responsible for preparing the financial statements, certifies that the accounting information contained in this press
release corresponds to documentary records and to accounting books and ledger entries.
***
7
CONFERENCE CALL
A conference call will take place today, Wednesday 5 November 2014, at 17:45 (CET), during which the YOOX
Group‟s management will present the results for the first nine months of 2014. If you wish to take part in the
conference call, please call one of the following numbers:




from Italy: +39 02 805 88 11
from the UK: +44 121 281 8003
from the US (toll-free number): 1 855 265 6959
from the US (local number): +1 718 705 8794
The presentation may be downloaded before the start of the conference call from the Investor Relations section of the
YOOX Group website at www.yooxgroup.com/en/investor_relation/press_releases/presentations_2014.asp.
A recording of the conference call will be available from Wednesday 5 November 2014, after the call, until
Wednesday 19 November 2014 on the following numbers:



from Italy: +39 02 724 95
from the UK: +44 121 281 8005
from the US (local number): +1 718 705 8797
Access code: 851#
YOOX Group analyst/investor contacts
YOOX Group media contacts
Silvia Scagnelli
Corporate Development & Financial Communications Director
T +39 02 83112811
[email protected]
Image Building
Simona Raffaelli, Emanuela Borromeo
T +39 02 89011300
[email protected]
YOOX Group
YOOX Group is the global Internet retailing partner for leading fashion & design brands. It has established itself amongst the
market leaders with the multi-brand online stores yoox.com, thecorner.com and shoescribe.com, as well as with numerous monobrand online stores, all of which are "Powered by YOOX Group." The Group is also a partner of Kering, with which it has created a
joint venture dedicated to the management of the mono-brand online stores of several of the Kering Group's luxury brands. The
Group has offices and operations in Europe, the United States, Japan, China and Hong Kong and delivers to more than 100
countries worldwide. Listed on the Milan stock exchange, the Group posted consolidated net revenues of Euro 456 million in 2013.
For further information: www.yooxgroup.com.
8
ANNEX 1 - YOOX GROUP RECLASSIFIED CONSOLIDATED INCOME STATEMENT
€ million
Consolidated net revenues
Cost of goods sold
Gross Profit9
% of consolidated net revenues
Fulfillment costs
Sales and marketing costs
EBITDA Pre Corporate Costs10
% of consolidated net revenues
General & administrative expenses
Other income and expenses
EBITDA11
% of consolidated net revenues
Depreciation and amortisation
Non-recurring items
Operating profit
% of consolidated net revenues
Income/Loss from investment in associates
Financial income
Financial expenses
Profit before tax
% of consolidated net revenues
Taxes
Consolidated net income
% of consolidated net revenues
3Q 2014
128.3
(85.1)
43.2
33.7%
(11.4)
(13.1)
18.7
14.6%
(9.1)
(0.4)
9.3
7.2%
(6.2)
3.0
2.4%
(0.1)
1.8
(1.4)
3.4
2.6%
(1.3)
2.0
1.6%
3Q 2013
111.8
(72.5)
39.3
35.2%
(9.4)
(12.8)
17.1
15.3%
(8.5)
(0.7)
7.9
7.1%
(4.7)
3.3
2.9%
(0.2)
0.2
(1.2)
2.1
1.9%
(0.8)
1.3
1.2%
Change
14.7%
17.4%
9.8%
EBITDA Excluding Incentive Plan Costs12
% of consolidated net revenues
9.4
7.3%
8.8
7.9%
Net Income Excluding Incentive Plan
Costs13
% of consolidated net revenues
2.1
1.6%
2.0
1.8%
9
9M 2014
366.3
(236.9)
129.4
35.3%
(33.4)
(39.1)
56.9
15.5%
(27.9)
(1.9)
27.1
7.4%
(17.9)
9.3
2.5%
(0.6)
2.1
(3.0)
7.8
2.1%
(3.2)
4.6
1.2%
9M 2013
319.3
(203.3)
116.0
36.3%
(29.1)
(36.3)
50.5
15.8%
(26.5)
(2.5)
21.5
6.7%
(13.5)
8.0
2.5%
(0.8)
1.0
(2.6)
5.6
1.8%
(2.1)
3.5
1.1%
6.5%
28.1
7.7%
25.3
7.9%
11.1%
5.4%
5.3
1.4%
6.4
2.0%
-17.5%
20.8%
2.2%
9.3%
7.2%
-48.6%
16.9%
33.7%
-6.9%
-51.4%
>100%
16.8%
56.8%
63.6%
52.7%
Change
14.7%
16.5%
11.6%
14.7%
7.7%
12.6%
5.0%
-22.9%
26.3%
32.7%
15.5%
-21.8%
>100%
12.3%
39.0%
54.9%
29.6%
Gross profit is earnings before fulfillment costs, sales and marketing costs, general and administrative expenses, other operating income and expenses, depreciation
and amortisation, non-recurring expenses, income/loss from investment in associates, financial income and expenses and income taxes. Since gross profit is not
recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union, its calculation might not be standard, and the measurement
criterion adopted by the Group might not be consistent with that adopted by other groups. Accordingly, the resulting figures may not be comparable.
10
EBITDA Pre Corporate Costs (or Operating Profit by business line) is defined as earnings before general and administrative expenses, other income and expenses,
depreciation and amortisation, non-recurring expenses, income/loss from investment in associates, financial income and expenses and income taxes. Since EBITDA
Pre Corporate Costs is not recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union, its calculation might not be
standard, and the measurement criterion adopted by the Group might not be consistent with that used by other groups. Accordingly, the resulting figures may not be
comparable. EBITDA Pre Corporate Costs corresponds to the operating profit by business line reported in the Group's Consolidated Interim Financial Statements.
11
EBITDA is earnings before depreciation and amortisation, non-recurring expenses, income/loss from investment in associates, financial income and expenses and
income taxes. Since EBITDA is not recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union, its calculation might not be
standard. Group management uses EBITDA to monitor and measure the Group‟s performance. The management believes that EBITDA is an important indicator of
operating performance in that it is not affected by the various criteria used to calculate taxes, the amount and characteristics of invested capital and the related
amortisation and depreciation methods. The criterion used by the Group to calculate EBITDA might not be consistent with that adopted by other groups. Accordingly, the
resulting figures may not be comparable between groups.
12
EBITDA Excluding Incentive Plan Costs is defined as EBITDA before the costs associated with Stock Option Plans and Company Incentive Plans, as described in the
Group's Consolidated Interim Financial Statements.
13
Net income Excluding Incentive Plans Costs is defined as the consolidated Net income of the period before the non-cash costs associated with Stock Option Plans
and Company Incentive Plans and their related tax effects.
9
ANNEX 2 - YOOX GROUP RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
€ million
30 September 2014
31 December 2013
Change
Net working capital14
51.0
28.3
80.1%
Non-current assets
80.8
71.2
13.5%
(0.2)
(0.4)
-49.9%
Net invested capital
131.6
99.2
32.7%
Shareholders' equity
134.8
119.7
12.6%
(3.1)
(20.5)
-84.7%
131.6
99.2
32.7%
30 September 2013
Change
Non-current liabilities (excluding financial liabilities)
15
Net debt / (net financial position)16
Total sources of financing
ANNEX 3 - YOOX GROUP RECLASSIFIED CONSOLIDATED STATEMENT OF CASH FLOWS
€ million
30 September 2014
Cash flow from (used in) operating activities
0.6
15.8
-96.1%
Cash flow from (used in) investing activities
(28.4)
(29.8)
-4.6%
Sub-Total
(27.8)
(14.1)
97.9%
(0.2)
3.2
<100%
(28.0)
(10.8)
>100%
Cash flow from (used in) financing activities
Total Cash Flow for the period
14
Net working capital is current assets, net of current liabilities, with the exception of cash and cash equivalents, bank loans and borrowings and other financial
payables falling due within one year and financial assets and liabilities included under other current assets and liabilities. Net working capital is not recognised as an
accounting measure under Italian GAAP or the IFRS endorsed by the European Union. The measurement criterion adopted by the Company might not be consistent
with that adopted by other groups. Accordingly, the balance obtained by the Company may not be comparable with the figures obtained by other groups.
15
Net invested capital is the sum of net working capital, non-current assets and non-current liabilities net of non-current financial liabilities. Net invested capital is not
recognised as an accounting measure under Italian GAAP or the IFRS endorsed by the European Union. The measurement criterion adopted by the Company might not
be consistent with that adopted by other groups. Accordingly, the balance obtained by the Company may not be comparable with the figures obtained by other groups.
16
Net debt (or net financial position) is the sum of cash and cash equivalents, other current financial assets, net of bank loans and borrowings and other financial
payables falling due within one year, other current financial liabilities and non-current financial liabilities. Net debt (or net financial position) is not recognised as an
accounting measure under Italian GAAP or the IFRS endorsed by the European Union. The measurement criterion adopted by the Company might not be consistent
with that adopted by other groups. Accordingly, the balance obtained by the Company may not be comparable with the figures obtained by other groups. Other current
financial assets are not governed in detail in CESR's definition of net debt (or net financial position): the Group considers it appropriate to supplement this definition by
including receivables from acquirers and logistics operators that have been requested to collect cash on delivery under “other current financial assets”.
10