Financial analysis of Tod’s group

Angelo Tralli Alberto Tirotta

Iacopo Quarone

Tod’s group story

• Established in early 1900s

• ‘70s developed from family enterprise to industrial company by keeping craftmanship of the products

• Over the years it has become a company that makes exclusive products

Group’s vision

The brands of the group, all with their personal identity, are linked by the same philosophy:

• Mix of traditon and modernity

• High quality

• Creativity

• Functionality

Tod’s group businessTod’s

Luxury market

Hogan Sportswear market

Fay Casual wear market

Roger VivierLuxury market

Tod’s sales

Mandatory disclosure:Consolidate financial statement

• Prepared in accordance with IAS-IFRS issued by ISB and supplemented by the additional information required by CONSOB. article 9 of legislative decree, article 78 of the issuer regulation

• The consolidated financial statement were approved by the board of directors of TOD’S S.P.A. On march 14°2011

2 assumptions:IAS 1,par 25

Principle of continuity

Historic costs

financial statement

Balance sheet

• Current

• Non current

Indicator of

revenues and costs

• EBITDA

• EBIT

Statement of cash

• Indirect method

Main events of 2010

• Operation made through the aquisition of the entire share capital of HOLPAF B.V.(party transaction)

• In financial terms, the impact on the group’s cash position was about 22.7 million

• The overall net financial position was about 63.0 millionMainly reflected the two bonds issued in 2006

by HOLPAF B.V.As indicated in IFRS 3, the individual assets and the

individual liabilities have been recognized at their fair value in accordance with the IAS 16,32,39

• Purchase of Omotesando building(Tokio)

Main events of 2010Payment of dividends (153 milion)

Ordinary dividend45.9 million

Extraordinary dividend107.1 million

Highlights of accounting principles adopted by Tod’s group

• SUBSIDIARIES include all entities in which the TOD’S Group has direct or indirect control over the financial and operating policies of an entity in order to obtain benefits from its activity IAS 27

• INTANGIBLE ASSETSo Goodwill represents the portion of the cost paid for the acquisition

that exceeds the Group’s interest in the fair value of the assets liabilities, and identifiable potential liabilities of the subsidiary or jointly controlled entity at the acquisition date IAS 36

o Depreciation Property, plant, and equipment were systematically depreciated at a steady rate according to the depreciation schedules defined on the basis of their estimated useful life. Land is not depreciated.

• TANGIBLE ASSETS

Highlights of results

Financial year 2010 ended on a high note in term of revenues, profit margins and profitability.

Sales and financial figures have confirmed that consumers appreciate the high quality product offered by the group’s brand

Breakdown of consolidated revenues(IAS 8)

Revenues by channel

Revenues by product

Revenues by brand

Voluntary disclosureLegislative Decree June 8, 2001, no. 231 (Administrative liability of legal entities, companies and association)

The administrative responsibility of companies in relation to a range of predefined criminal offences committed by persons within the company

the liability arises not only on the head of the individual and actual perpetrator of the offence, but for legal entities as well

The control system, as set forth by the norm, is optional and not compulsory

Role of the “exemption” clause

The code of conductIn order to achieve its objectives Tod’s Group believes in, accepts and complies the following ethical principles:

• compliance with laws and regulations and compliance with the strictest rules of behavior

• equality fairness in the treatment of employees, collaborators and customers

• transparency and reliability

• honesty, fairness and good faith

• confidentiality

• value of the person and of human resources

The code of conductIn the code of conduct the Group commits itself to provide adequate and complete supporting documentations of its activities.

Importance of accounting activity have to meet the requirements of:

• truth

• completeness

• transparency

for each operation recorded

Social responsibility

TOD’S S.p.A. is financing the restoration works on the Colosseum as sole and exclusive sponsor

The sponsorship campaign is the biggest to rescue Italy's archaeological treasures with private money(an investment of 25 million of euro)

I won't put Tod's shoes on the Colosseum“ Della Valle said.

The system of government and control

Internal control

Indipendent direct

committee

Shareholder’s meeting

Board of directors

The Board of Statutory Auditors

Executive Committee

LATIN MODEL

Internal controlCorporate Governance

CommitteeRemuneration

Committee

Indipendent direct

committee

Shareholder’s meeting

Board of directors

The Board of Statutory Auditors

Executive Committee.

The system of government and control

• The internal control system: Its main function is to ensure that the administrative and accounting procedures prepared guarantee the reasonable credibility of the financial information and the organization's ability to produce timely and reliable accounting and financial information, in compliance with the reference accounting standards (IAS/IFRS)

• The external control system: TOD’S Group decided to charge Deloitte & Touche S.p.A to audit TOD’S S.p.A. and its other subsidiaries

Conclusion

Winning keys of the Group:

• High value-added products

• Excellent positioning in the fastest-growing economies (especially China)

• High quality of the information disclosed

Thank you for your attention