2010 Nine Months Results 10 November 2010cdn3.yoox.biz/.../YOOX_Group_9M2010_Results_Presentation.pdf9M 2010 FINANCIAL ANALYSIS CHINA LANDING APPENDIX The information contained in

2010 Nine Months Results

10 November 2010

The information contained in this document is confidential and proprietary to YOOX Group

SLIDE 2

TABLE OF CONTENTS

RESULTS HIGHLIGHTS

UPDATE ON BUSINESS DEVELOPMENTS

9M 2010 FINANCIAL ANALYSIS

CHINA LANDING

APPENDIX


SLIDE 3

NINE MONTHS ENDED SEPTEMBER 30, 2010 - KEY HIGHLIGHTS

Key Performance Indicators

8.1m monthly unique visitors (vs. 5.9m in 9M 2009)

1,115 thousand orders (vs. 837 thousand in 9M 2009)

Average Order Value of €174 (vs. €163 in 9M 2009)

576 thousand active customers (vs. 439 thousand in 9M 2009)

Key Financials

Net Revenues at €150.8m, +41.2% (vs. €106.7m in 9M 2009)

EBITDA Excluding Incentive Plan Costs at €12.5m, +62.6% (vs. €7.7m in 9M 2009)

EBITDA margin Excluding Incentive Plan Costs up at 8.3% (vs. 7.2% in 9M 2009)

EBITDA at €9.8m, +35.7% (vs. €7.2m in 9M 2009)

EBITDA margin at 6.5% (vs. 6.8% in 9M 2009)

Net Income at €4.0m, +41.8% (vs. €2.8m in 9M 2009)

Net Cash of €19.9m (vs. €34.0m of Net Cash at Dec. 2009)


SLIDE 4

TABLE OF CONTENTS

RESULTS HIGHLIGHTS



CHINA LANDING

APPENDIX


SLIDE 5


Multi-Brand

Launched localized version of yoox.com in Russia

Mono-Brand

Launched zeishouse.com and maisonmartinmargiela.com

Signed contract with EZI S.p.A. for the launch of zegna.com by year end

Signed contract with Adidas A.G. for the launch of y3-store.com by 1H2011

Technology Innovations

Launched yoox.com release 9.0 (improved navigation features, CRM and product presentation), yoox.com for iPad, yoox.com for

Japanese mobile platform and Facebook application

Launched thecorner.com release 3.0 (improved navigation features, product presentation and introduced fast checkout)

Added pre-order and 360 degree photo functionality options to Mono-Brand business line

New Markets

China landing: acceleration in Chinese market roll out, expected launch of first Mono-brand Online Store by year end


SLIDE 6

TABLE OF CONTENTS

RESULTS HIGHLIGHTS



CHINA LANDING

APPENDIX


SLIDE 7

YOOX GROUP PROFIT & LOSS

Note: Figures as absolute values and in percentages are calculated using precise financial data. Some of the differences found in this presentation are due to rounding of the values expressed in millions of Euro

In this presentation, third quarter figures are calculated as the difference between the nine months results and the first half results of the same year

Depreciation & Amortisation included in Fulfillment, Sales & Marketing, General & Administrative have been reclassified and grouped under Depreciation & Amortisation

EBITDA Excluding Incentive Plan Costs calculated adding back to EBITDA the costs associated with incentive plans in each period

3Q 20099M 2009 9M 2010 3Q 2010

(€m)

Net Revenues 106.7 150.8 38.4 54.2

growth 48.8% 41.2% 41.0%

COGS (66.8) (93.6) 40.1% (24.2) (34.2)

Gross Profit 39.9 57.1 43.1% 14.2 20.0

% of Net Revenues 37.4% 37.9% 37.0% 36.9%

Fulfillment (11.2) (15.5) 38.4% (3.8) (5.5)

% of Net Revenues 10.5% 10.3% 9.8% 10.1%

Sales & Marketing (12.1) (17.8) 47.1% (4.3) (6.4)

% of Net Revenues 11.3% 11.8% 11.1% 11.8%

EBITDA Pre Corporate Costs 16.6 23.9 43.4% 6.2 8.2

% of Net Revenues 15.6% 15.8% 16.1% 15.1%

General & Administrative (8.6) (13.6) 58.5% (3.0) (5.0)

% of Net Revenues 8.1% 9.0% 7.7% 9.2%

Other Income/ (Expenses) (0.8) (0.4) (49.1%) (0.2) (0.2)

% of Net Revenues 0.7% 0.3% 0.4% 0.3%

EBITDA 7.2 9.8 35.7% 3.1 3.0

% of Net Revenues 6.8% 6.5% 8.0% 5.5%

Depreciation & Amortisation (1.4) (2.3) 69.9% (0.5) (0.8)

Operating Profit 5.9 7.5 27.6% 2.6 2.2

% of Net Revenues 5.5% 5.0% 6.7% 4.0%

Net Financial Income / (Expenses) (1.0) (0.2) (0.3) (0.5)

Profit Before Tax 4.9 7.3 49.7% 2.3 1.7

% of Net Revenues 4.5% 4.8% 5.9% 3.0%

Taxes (2.0) (3.2) 60.9% (1.0) (1.0)

Net Income 2.8 4.0 41.8% 1.3 0.7

% of Net Revenues 2.7% 2.7% 3.3% 1.3%

EBITDA Excluding Incentive Plan Costs 7.7 12.5 62.6% 3.2 4.3

% of Net Revenues 7.2% 8.3% 8.4% 8.0%


SLIDE 8

163

174

1H09 1H10

3.84.9

2.1

3.2

9M 2009 9M 2010

439

576

9M 2009 9M 2010

KEY PERFORMANCE INDICATORS

837

1,115

9M 2009 9M 2010

Monthly Unique Visitors (m)¹

Active Customers2 (‘000) – Group3

# Orders (‘000) - Group

Average Order Value (€) - Group

1. Source: HBX 1/1/09-19/03/09 and SiteCatalyst since19/03/09 for yoox.com; Google Analytics for other stores

2. Active Customer is defined as a customer who placed at least one order in the 12 preceding months

3. Include Active Customers of Online Stores

9M 2009 9M 2010

5.9

8.1

9M 2009 9M 2010

9M 2009 9M 2010 9M 2009 9M 2010

Multi-Brand Mono-Brand


SLIDE 9

3Q09 3Q10

9M 2009 9M 2010

77.0%

23.0%

83.2%

16.8% 17.3%

82.7%

22.1%

77.9%

32.7%

80.5%

NET REVENUES BREAKDOWN BY BUSINESS LINE AND GEOGRAPHY

Net Revenues by Business Line

9M 2009 9M 2010

41.2%

3Q 2009 3Q 2010

41.0%

Net Revenues by Geography

Y-o-Y

Growth

30.7%

93.2%

€38.4m€54.2m

3Q 2009 3Q 20109M 2009 9M 2010

1. Not Country Related

48.7%

19.4% 23.3%

6.4%2.2%

49.6%

17.2% 24.1%

6.2%2.9%

49.7%

19.1% 21.9%

6.5%2.9%

49.7%

15.7% 26.3%

6.0%2.2%

€106.7m

€150.8m

Italy

Rest of Europe

North America

Japan

RoW + NCR 1

Multi-Brand

Mono-Brand


SLIDE 10

€(9.4)m

€(14.0)m

€(3.1)m

€(5.2)m

9M2009 9M2010 GAP 3Q2009 3Q2010

€3.1m €3.0m

€2.3m

€5.6m

€1.2m€1.7m

9M2009 9M2010 GAP 3Q2009 3Q2010

€14.3m

€18.3m

€5.0m€6.4m

9M2009 9M2010 GAP 3Q2009 3Q2010

€7.2m

€9.8m

EBITDA ANALYSIS BY BUSINESS LINE

# Online Stores Open

15 21

3Q 2009 3Q 2010

Note: Multi-brand and Mono-brand EBITDA Pre Corporate Costs include all costs directly associated with the business line, including COGS, Fulfillment, Sales & Marketing (all net of D&A);

Corporate Costs include General & Administrative costs (net of D&A) and Other Income/ Expenses

% of Net

Revenues

EBITDA Evolution

Multi-brand EBITDA

Pre Corporate CostsCorporate Costs

Mono-brand EBITDA

Pre Corporate Costs

% of

Multi-

brand Net

Revenues

15.3%16.1% 15.8% 15.9%

6.8% 6.5% 8.0% 5.5%

% of

Mono-

brand Net

Revenues

% of

Group

Net

Revenues

9M

2009

9M

2010

14.3%13.0% 16.0% 17.4% 9.5%8.8% 9.3% 8.2%

9M 2009 9M 2010

9M

2009

9M

2010

9M

2009

9M

2010

3Q

2009

3Q

2010

3Q

2009

3Q

2010

3Q

2009

3Q

2010


SLIDE 11

% of

Total

% of

Total

% of

Total

% of

Total

9M

2009

9M

2010

3Q

2009

3Q

2010

FOCUS ON INCENTIVE PLAN COSTS

(€m)

Fulfillment (11.174) (15.462) (3.770) (5.459)

of which Incentive Plan Costs (0.041) 9.5% (0.102) 3.8% (0.014) 8.8% (0.071) 5.4%

Sales & Marketing (12.095) (17.794) (4.265) (6.385)


General & Administrative (8.597) (13.623) (2.968) (5.000)


Incentive Plan Costs (0.430) 100.0% (2.647) 100.0% (0.158) 100.0% (1.327) 100.0%

EBITDA Reported 7.246 9.831 3.062 2.997

% of Net Revenues 6.8% 6.5% 8.0% 5.5%

Incentive Plan Costs (0.430) (2.647) (0.158) (1.327)

EBITDA Excl. Incentive Plan Costs 7.676 12.478 3.221 4.324

% of Net Revenues 7.2% 8.3% 8.4% 8.0%


SLIDE 12

YOOX GROUP SUMMARY BALANCE SHEET

9M 2010FY 20099M 2009

(€m)

Net Working Capital 21.7 9.8 26.6

Non Current Assets 9.7 10.9 15.5

Non Current Liabilities (excl. financial liabilities) (0.7) (0.6) (0.6)

Total 30.7 20.1 41.5

Net Financial Debt / (Net Cash) 5.6 (34.0) (19.9)

Shareholders' Equity 25.0 54.1 61.4

Total 30.7 20.1 41.5


SLIDE 13

NET WORKING CAPITAL EVOLUTION

9M 2010

Inventory Level Evolution

FY 20099M 2009

Net Working Capital

1. Percentages calculated on LTM Net Revenues

40.8%37.9%

43.7%

33.8%30.9%

33.7%

9M2009 FY2009 9M2010

Inventories as % of Multi-brand Net Revenues Inventories as % of Group Net Revenues

11

Increase in Trade Payables mainly related to extension

of payment terms with suppliers and to increased

sourcing activity to support future growth

Decrease in Other Receivables / (Payables) mainly due

to payments of tax liabilities of €2.9m related to stock

option exercise by people for which YOOX acted as

withholding agent, FY2009 corporate tax of €3.3m and

FY2010 prepaid income taxes of €1.0m

(€m)

Inventories 46.1 47.1 66.1

Trade Receivables 3.5 6.7 7.5

Trade Payables (22.0) (27.3) (39.0)

Other Receivables / (Payables) (5.9) (16.8) (8.0)

Net Working Capital 21.7 9.8 26.6

as % of Net Revenues 15.9% 6.4% 13.5%1 1


SLIDE 14

€(34.0)m €(3.3)m

€(1.0)m €(2.9)m€(3.5)m

€1.7m

€(5.6)m

€1.0m

€(0.5)m €(19.9)m

FY09 Net Cash FY09 Corporate Taxes

FY10 Prepaid Income Taxes

Taxes related to Stock Options Ex.

IPO Costs Restated Cash Flow

from Operations

Capex Stock Option Proceeds

Others 9M10 Net Cash

YOOX GROUP NET FINANCIAL POSITION EVOLUTION

Net Financial Position

Net Financial Position Evolution

1. Excludes FY09 Corporate Taxes, FY10 Prepaid Income Taxes, Taxes related to Stock Option exercise and IPO Costs

2. Stock options exercised and cashed in during the first nine months of 2010

3. Includes €0.4m related to share buy back

9M 2009 FY 2009 9M 2010

12

(€m)

Cash and Cash Equivalents (10.9) (35.0) (11.1)

Other Current Financial Assets (0.0) (0.0) (10.2)

Current Financial Assets (10.9) (35.0) (21.3)

Current Financial Liabilities 0.4 0.3 0.5

Long Term Financial Liabilities 16.1 0.7 0.9

Net Financial Debt / (Net Cash) 5.6 (34.0) (19.9)

3


SLIDE 15

(€m)

Cash and Cash Equivalents at Beginning of Period 12.6 12.0 9.0 35.0

Cash Flow from Operations (1.2) (4.2) 4.3 (9.0)

Cash Flow from Investment Activities (0.5) (1.4) (1.1) (5.1)

Sub Total (1.7) (5.6) 3.2 (14.1)

Cash Flow from Financing Activities (0.0) 4.8 (1.3) (9.8)

Cash Flow (1.7) (0.8) 1.9 (23.9)

Cash and Cash Equivalents at End of Period 10.9 11.1 10.9 11.1

€2.3m

€5.6m

€0.7m

€1.6m

YOOX GROUP CASH FLOW STATEMENT

9M 2009 9M 20103Q 2009 3Q 2010

Cash Flow Statement

Capex

9M 2009 9M 2010 3Q 2009 3Q 2010

Include payments of: €3.5m related

to IPO costs, tax liabilities of €2.9m

related to stock option exercise by

people for which YOOX acted as

withholding agent, €3.3m related to

FY09 corporate tax liabilities and

€1.0m related to FY10 income taxes

Investments in low-risk, short term

repurchase agreements

1

% of Net Revenues 2.1% 3.7% 1.7%

1. Cash Flow from Investment Activities benefits from €0.8m related to the replacement of a guarantee deposit by a bank guarantee

2.9%


SLIDE 16

TABLE OF CONTENTS

RESULTS HIGHLIGHTS



CHINA LANDING

APPENDIX


SLIDE 17

CHINA, A LONG TERM OPPORTUNITY

€ 20 bn

€ 12 bn

€ 4 bn

€ 5 bn

+10%

+11%

+12%

+30%

64%

19%

79%

54%

28%

68%

67%76%

Chinese online users reached 251 million in 2009 - almost in line with Western European numbers - even though only 19% of

people use the internet

Chinese shopping penetration1 stands at 28%, meaning that only 5% of the total population buys online, still far behind Japan, the

US and Western Europe

Consumption of luxury goods in China topped $9.4bn in 2009 - 27.5% of the global market - making China the 2nd largest

consumer behind Japan2

Online fashion market3 still relatively small, but expected to surpass the UK in 2010

1. Shopping penetration defined as the ratio between the number of online shoppers and the number of online users

2. Source: World Luxury Association

3. Fashion market includes apparel, accessories and footwear

4. Source for 4, 5, 6, 7, 8: Forrester Research, please refer to slide 22 in the Appendix for further details

4

CountryOnline Fashion Market

2009-2014E CAGR

Online Fashion

Market 2009 Size6,7,8

2009 Internet

Penetration5

2009 Online Buyer

Penetration6,7,8

http://it.wikipedia.org/wiki/Immagine:Flag_of_the_United_States.svg


SLIDE 18

CHINA, THE STRATEGIC PLAN

Provides our Mono-brand

partners with a double

shopping window to show and

sell the same products

available on their Online Stores

and placed in our local

warehouse

In addition to the Online Stores’

brands, hosts an accurate

selection of cutting edge

designers appealing to Chinese

customers

Helps our partners minimize risk

of local end-of-season inventory

through a trustworthy channel

that doesn’t dilute their brands’

image

MISSION: The first official internet retail partner in China for leading fashion brands

OBJECTIVE: Support the Group’s long term growth with a gradual approach to minimize risk in a complex market

POSITIONING: Start with full-price offering, excellent customer service and superior shopping experience

2011…

2012…

By end of 2010…

Help our Mono-brand partners

establish an online presence in

a market with high growth

potential and further extend

their business proposition

globally

Leveraging the brands’

international recognition and

reputation


SLIDE 19

Shanghai

CHINA, THE OPERATIONAL STRUCTURE

ESTABLISHED ON

SEPTEMBER 27, 2010

YOOX’S CORE ACTIVITIES

Technology & CRM

Buying & Merchandising

Communication & Retail Marketing

Content Management

Interface Design

Digital Production

Customer Care

Online Payments

Handling & Logistics

Call Centre

THIRD PARTY PROVIDERS

Transport, Cash on Delivery & POS Payments

YOOX has adopted the same legal and organizational model already used by other local internet players for the set-up of their

operations in China (the so-called “Sina Corp. Model”, which takes its name from the first company that used this structure) and

adapted it to its own specific needs

Local Office

Logistics Centre

Digital Production Facility

Customer Care Centre


SLIDE 20

TABLE OF CONTENTS

RESULTS HIGHLIGHTS



CHINA LANDING

APPENDIX


SLIDE 21

Management team and other stock option holders 7,169,448 11.3%

Federico Marchetti 7,090,501 11.1% 2,411,853 4.7%

Sub-total 14,259,949 22.4% 2,411,853 4.7%

Balderton Capital 5,870,280 9.2% 5,870,280 11.3%

Red Circle 3,178,291 5.0% 3,178,291 6.1%

Federated 2,575,979 4.0% 2,575,979 5.0%

Essegi Srl 2,476,656 3.9% 2,476,656 4.8%

JP Morgan Asset Management 2,467,490 3.9% 2,467,490 4.8%

Henderson Global Investors 1,160,598 1.8% 1,160,598 2.2%

Wasatch Advisors 1,158,675 1.8% 1,158,675 2.2%

Invesco 1,041,956 1.6% 1,041,956 2.0%

Market 29,421,778 46.3% 29,421,778 56.8%

Total 63,611,652 100.0% 51,763,556 100.0%

SHAREHOLDER STRUCTURE

Shareholder CurrentFully Diluted 1

2

Updated as of November 10, 2010

1. The fully diluted column shows the effect on the Company’s shareholder structure calculated assuming that all the stock options granted under the Company’s stock option plans are exercised. It does not

include 124,436 ordinary shares granted under the 2009-2014 Incentive Plan

2. Exclude Federico Marchetti

3. Includes 62,000 proprietary shares

3


SLIDE 22

SOURCES INDEX

4. Flag refers to Western Europe, which includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland,

Italy, Luxembourg, Netherlands, Norway, Portugual, Spain, Sweden, Switzerland and UK

5. Forrester Research World Online Population Forecast, 2010 to 2014 (Global)

6. Forrester Research Online Retail Forecast, 2010 to 2015, October 2010 (Asia Pacific)

7. Forrester Research Online Retail Forecast, December 2009 (US)

8. Forrester Research Online Retail Forecast, January 2010 (Western Europe)

Please note that data in EUR/USD has been converted at an exchange rate of 1.39

CAGR computations have been elaborated by the Company


SLIDE 23

CONTACTS

Investor Relations

[email protected]

www.yooxgroup.com

BOLOGNA - MILANO - NEW YORK - MADRID - PARIS - TOKYO - SHANGHAI

mailto:[email protected]

http://www.yooxgroup.com/

2010 Nine Months Results 10 November 2010cdn3.yoox.biz/.../YOOX_Group_9M2010_Results_Presentation.pdf9M 2010 FINANCIAL ANALYSIS CHINA LANDING APPENDIX The information contained in

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