CASE HISTORY COIN

1 COIN: one hundred years of history

• 1916 Vittorio Coin starts the Gruppo Coin activities

• 1926 First Coin Store (Mirano, )

• 1965 Coin P.za 5 Giornate opens ()

• 1972 First “Organizzazione Vendite Speciali” (Oviesse) store

• 1986 Coin is the first retailer to develop a fidelity card program in

• 1995 Oviesse become an apparel retailer

• 1998 Acquisition of La Standa

• 1999 Listing of Gruppo Coin on the Milan Stock Exchange

• 2005 PAI equity fund becomes Gruppo Coin majority shareholder

• 2008 Acquisition of Melablu

• 2010 Acquisition of UPIM

• 2011 BC Partners becomes Gruppo Coin majority shareholder

• 2011 Excelsior opens in Milan

• 2012 Acquisition of IANA

• 2013 Excelsior opens in

• 2014 Coin Excelsior opens in Rome

2 Coin in a snapshot

Established in 1926, Coin is the largest Italian department store

€413,2 m net sales in 2014

77 stores in Italy and 20 abroad, located downtown in the most important Italian cities and shopping areas

Portfolio of 800 brands

46 million visitors every year

21,6 million items sold and 12 million receipts

3 Where we come from: Net Sales and Sqm building 2008–2010–2012

TOTAL CATEGORY (Beauty and Home not included)

● NET SALES

2008 2010 2012 11% 35% 33% hb 41% 50% 32% ws 57% concession

17% 24%

NET SALES (€/1000): 232.935 NET SALES (€/1000): 273.814 NET SALES (€/1000): 276.158

● SQM BUILDING

2008 2010 2012 8% 26% 35%

hb 31% 43% ws 48% concession 61%

26% 22%

SQM: 74.100 SQM: 82.010 SQM: 91.335

4 Where we come from: Trend 2007-2011

Ebitda trend (2007 – 2011 ) is positive thanks to network development otherwise is offset because of division costs and the decrease of LfL Ebitda Store Bridge Ebitda (2007-2011)

Ebitda Coin 2007 ∆ Store Ebitda ∆ Store Ebitda ∆ Division Costs ∆ HQ costs ∆ Ebitda Coin 2011 LfL New opening/closure

*Capex 2007-2011: 61,7 mio € (Italian new openings, conversions and refurbishing)

5 Where we come from: Trend 2007-2011

Ebitda trend is negative because of the Gross Margin decrease is higher than rent incomes increase Bridge Ebitda of the same dos from 2007 to 2011

Network 2007

Space Impact: -36,1M€ Sales Density: -7,7M€

Gm Impact: -2,0M€

Store Ebitda ∆ GM ∆ Personnel ∆ Rent ∆ Space ∆ Operating ∆ Rent Store Ebitda ∆ 2007 costs costs costs income 2011 2007-2011

Partners 0,6 0,0 -6,5 -8,0 -2,6 -4,2 41,4 20,7 20,1 Wholesales 7,5 -11,8 2,4 1,4 0,6 0,9 0,0 1,0 -6,5 Housebrand 31,4 -34,0 8,2 4,2 1,9 2,9 0,0 14,6 -16,8 6 Total 39,5 -45,8 4,1 -2,4 -0,1 -0,4 41,4 36,3 -3,2 M€ Going Forward

1. WHAT WORKED AND WE FURTHER IMPROVE: • Concession Model • Cost control • Format Coin (customer experience)

2. WHAT HAS NOT WORKED AND WE ADDRESS: • Wholesales man/woman/ accessories: reduction of sales density and Ebitda • House brand: fall of sales density • Upim conversion and new opening underperforming

3. WHAT WE “ TURN AROUND” • Customer Experience  “consumer have to dream while walking”  “memorability and uniqueness of the experience”

7 The market share of department stores in Italy is the lowest in Europe but…

% share men/women/kids clothing market in terms of value per sales channel

Source: European Customer Panel 2012

8 # Monobrand POP breakdown by channel of distribution: Based on 21 brands

9 …showing significant growth opportunities vs. independent multibrand -3,0% -5,0% -6,5% Market Share 3,0 3,0 3,0 Other Channels (w/o Outlets&E-Commerce) 7,1 7,0 6,5 3,5 3,4 3,3 Market

29,7 34,7 32,7 Multibrand Hyper+Super Channels 2,4 1,5 Independent stores 0,8 7,1 7,5 9,0 4,0 3,6 4,0 3,2 3,6 3,2 E-Commerce

Large Surface retailers 44,0 38,7 41,2

DepartmentDepartment Store stores

Specialized retail channels 2011 2012 2013

10 Italian Market Concentration

In 2013, over 7.000 independent apparel stores went out of business; (1°quarter 2014 -3.000) Multibrand apparel channel 51.000 (without footwear)

apparel 54,9%

footwear 18,6%

leather sport 2,5% underwear children 5,5% 14,1% 4,4%

Source : Fashion Bank

11 Apparel/accessories consumption according to price range

VAR % 13/12 CORR. VALUE Price index numbers

Total Var -6,6 2012 2013

Luxury BRIDGE / -4,6 323 310 BEST

BETTER -8,6 209 204

Accessible luxury

GOOD -10,0 141 141

MODERA Medium -5,0 95 98 price TE

Low MASS -3,3 49 50 price

Source: Fashion Consumer Panel 12 and internal elaboration WHAT WE HAVE DONE: Coin Strategy

CONSOLIDATE THE MARKET, CREATING A PREMIUM DEPARTMENT STORE NETWORK:

•Increase the space allocated to brands in concession (33%) with a positive impact on the business profitability and working capital (stock/sqm -29% in the last 4 years), limiting the presence of housebrands/wholesale to the minimum

•Trading up brand mix, leveraging concession model with accessible luxury brands, growing average ticket.

• Progressive conversion of the most relevant stores in the Coin Excelsior format (premium contemporary) following Coin Excelsior Rome extremely positive results.

• Optimizing sales people kpi efficiency (sales/eft, sqm/eft), improving performance via selection training and incentive plans

EBITDA CASH FLOW BRAND + + ++++ POSITIONING UPGRADE +++ 13 Sales and sqm per commercial mix

TOTAL CATEGORIES (Perfurmery and Home escluded) ● NET SALES

2008 2010 2013 11% 35% 30% hb 41% 32% 55% ws 57% partner 15% 24%

NET SALES (€/1000): 232.935 NET SALES (€/1000): 273.814 NET SALES (€/1000): 268.215

● SQM BUILDING

2008 2010 2013 8% 26% 38% hb 31% 43% ws 48% partner 61% 26% 19%

SQM: 74.100 SQM: 82.010 SQM: 90.797

14 Italian Market Share: upgrade evolution

Market share Market share 2013 2013 2013 Coin MKt Share: Coin Italy 2012 1,36%

2013 1,49% Luxury LV, Over 400% Chanel, of leverage price Dior, Luxury Luxury Cucinelli, 0% Gucci, 12-13% Lanvin, Prada….

Ralph Accessible Lauren, luxury High More 200% Moncler ? 0,8% MaxMara, of leverage price Accessible Zegna, Fay Accessible Luxury luxury High 38-45 From 125 to 200% Seventy, Twin Set, Liu of leverage price Longcha Jo, M. Kors, mp, MbyM, Paul Accessible luxury Furla, Smith, … medium low Boggi,… 1,9% From 75 to 125% of leverage price Marlboro Classics Stefane Marina l, Fast Fashion Yacthing THilfige Medium Price r, Medium price Fast fashion Miss Siixtiy . 1,9% Medium price From 50 to 75% 32-38% of leverage price Esprit Zara, Benetton Mango, Motivi..

Low Price Low price Upim, Piazza Italia, Terranova, Low price Up to 50% Iper, mercatini 0% OVS, H&M 11-13% of leverage price

15 Italian Market Share: upgrade evolution

Market share Market share 2013 2013 2013 Coin MKt Share: Coin Italy 2012 1,36%

2013 1,49% Luxury LV, Over 400% Chanel, of leverage price Dior, Luxury Luxury 2014 1,62% Cucinelli, 0% 12-13% Gucci, Lanvin, Prada….

Ralph Accessible Lauren, luxury High More 200% Moncler MaxMara, 0,8% of leverage price Accessible Zegna, Fay Accessible Luxury luxury High 38-45 From 125 to 200% Seventy, Twin Set, Liu of leverage price Longcha Jo, M. Kors, mp, MbyM, Paul Accessible luxury Furla, Smith, … medium low Boggi,… 1,9% From 75 to 125% of leverage price Marlboro Classics Stefane Marina l, Fast Fashion Yacthing THilfige Medium Price r, Medium price Fast fashion Miss Siixtiy . 1,9% Medium price From 50 to 75% 32-38% of leverage price Esprit Zara, Benetton Mango, Motivi..

Low Price Low price Upim, Piazza Italia, Terranova, Low price Up to 50% Iper, mercatini 0% OVS, H&M 11-13% of leverage price

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Brand Mix Evolution HIGH PRICE

luxury

hgh

.

medium

CLASSIC CONTEMPORARY

TRADITIONAL NEO TRADITIONAL CONTEMPORARY TRENDY

entry price entry

LOW PRICE 17 Stores and Brand Mix Evolution

2005 / 2008 2009 / 2013 2014

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COIN EXCELSIOR - Roma Cola di Rienzo 2012 2014

(K/€) Building Sqm 3.140 4.240* (+35%)

Concession Sqm 1.232 2.320 * (+88%)

Building Sales 27.816 45.790 (+65%)

Sales Density 8.858 10.800 (+22%)

Average Ticket 49,16 70,26 (+43%) *with food market ** current rent ***calculated on building net sales 20 AMBASSADORStore Clusters (12): – Clusterization Criteria • Market > 500 mln € •AMBASSADORPopulation > 1 mln (12, of which 5 potential Coin Excelsior) • Market> 500 mln euro • Average market income > 100 • Population> 1 mln ••SalesAverage/sqm > 4.500 market income > 100 ••% ofSales/total Buildingsqm > Sales 4.500Coin: 42% ••% of%total of StoretotaleEBITDA Builiding Coin: Sales48% Coin: 42% ••Central% oflocations total Store EBITDA Coin: 48% • Central locations • High quality stores • High quality store CITY BOUTIQUE (28): •CITY% of total BOUTIQUE Building Sales (11)Coin : 40% • % of total Building Sales Coin: 40% • % of total Store EBITDA Coin: 39% • % of total Store EBITDA Coin: 39% SHOPPING CENTER (5) •SHOPPING% of total Building CENTER Sales Coin: (7) 13% ••% of%total of Storetotal EBITDABuilding Coin: Sales 13% Coin: 13% • % of total Store EBITDA Coin: 13% COIN FACTORY STORE (8): •OTHERSSize < 2.000 (24) mq ••% ofSizetotal

21 Direct Store Network - 2014

22 Becoming a Total Retailer

23 Becoming a real omnichannel retailer:CRM to enhance the Customer Experience

ON LINE • Email • Web Site • Social Network • Ecommerce

OFF LINE • In Store Windows • Video Wall • Digital Totem • Radio • TV • Leaflet

BETWEEN ON & OFF LINE • SMS • Push Notification • App

24 Customer Omnichannel Experience

CRM : the Key for Omnichanneling CRM is the Bridge between the Customer and the Brand channels. CRM is the key to obtain a omni-channel retail strategy to promote your brand, improve the consumer experience and increase revenues.

25 Digital Communication – In-Store TV

In-Store TV

250 monitors located on the ground floor of

33 stores

26 Digital Communication – Radio & Digital Totem

Radio & Digital Totems •

Coin Music Design is present in all stores with a radio station broadcasting the best of international pop, electro dance and R’n’B music.

27 Digital Communication – Digital Windows

Digital Showcase Innovative Digital Windows: a backdrop comprising FullHD screens to combine digital contents and product display

28 Digital Communication – Proximity Marketing

iBeacons & Proximity marketing • Innovative Third Parties APP to start using

iBeacons tecnology in the Store

29 Digital Communication – Events combining Online & Offline

Google Glass test in store

Blogger Engagement Coin FaceBook Page

In Store Event, using Video Wall

30 Digital Communication – Google Hangout

31 Digital Communication – Google Virtual Tour

32 Digital Communication – Digital Assets Coincasa.it Launched in November 2014, the first Coin E-commerce. Coin.it From April 2015 Click & Collect will be 200,000 unique visitors per month // 1 million page views available per month // 11 millions DEM sent per year //

Social Networks with a high level of fan activities Andorid & IOS App Twitter // Facebook // Google Plus // Launch in March 2015

33 Customer Omnichannel Experience – The role of COINCARD

Coincard Large database (over 2 millions people) 862,000 active consumer (84% women, 16% men) 47% of Coin sales

Virtual Coincard From March 2015 even on your Smartphone for existing users and new ones

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