2011 IAS/IFRS Half Year Report - Tod's Group Spa · Holpaf B.V. Real estate company Re.Se.Del....

2011 IAS/IFRS Half Year Report

Group

TOD’S Group 2011 Half Year Financial Report

06.30.2011

Table of contents

TABLE OF CONTENTS

Company’s data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Corporate Governance bodies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

TOD’S Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Group’s organizational chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Distribution network as of June 30t h

2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Key consolidated financial f igures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Highlights of results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Interim Report ................................ ................................ ................................ ........ 9

Group’s activity ......................................................................................................... 10

Group’s brands .......................................................................................................... 10

Organizational structure of the Group ....................................................................... 11

Foreign currency markets .......................................................................................... 11

Main events and operations during the perio d .......................................................... 12

The Group’s results in HY 2011 .................................................................................. 13

Significant events occurring after the end of the period ........................................... 20

Business Outlook ....................................................................................................... 20

Supplementary notes ................................................................ ..............................21

1. General notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

2. Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3. Seasonal or ciclical nature of interim transactions .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

4. Alternative indicators of performances .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

5. Scope of consolidation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

6. Segment reporting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

7. Earnings per share .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

8. Dividends .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

9. Intangible and tangible fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

10. Hedging of f inancial risks (IFRS 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

11. Transactions with related parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Half-year Condensed Financial Statements ................................ ................................33

Consolidated Profit & Loss ......................................................................................... 34

Consolidated comprehensive income ......................................................................... 35

Consolidated Statements of Financial Position .......................................................... 36

Consolidated Statements of Cash Flows ..................................................................... 38

Attestation of the Half -Year condensed financial statements of TOD’S Group pursuant

article 154 bis of D.LGS. 58/98 and of article 81 -ter of Consob Regulation n. 11971 of May

14th

1999 and further modifications and integrations. ................................................40


06.30.2011

1 Company’s data

Company’s data

Registered office

TOD’S S.p.A.

Via Fil ippo Della Valle, 1

63811 Sant'Elpidio a Mare (Fermo) - Italy

Tel. +39 0734 8661

Legal data Parent company

Share capital resolved euro 61,218,802

Share capital subscribed and paid euro 61,218,802

Fiscal Code and registration number on Company Register of Court of Fermo: 01113570442

Registered with the Chamber of Commerce of Fermo under n. 114030 R.E.A.

Offices e Show rooms Dusseldorf – Kaistrasse, 2

Hong Kong - Three Pacific Place, 1 Queen’s Road East

London - Old Bond Street, 16

Milan - Corso Venezia, 30

Milan - Via Savona, 56

Milan - Via Serbelloni 1-4

Milan - Via della Spiga, 22

Milan - Via Montenero, 63

New York - 450, West 15t h

Street

Paris - Rue Royale, 20

Seoul - 89-10, Cheongdam-dong, Kangnam-ku

Shanghai - 1366 Nanjing West Road, Plaza 66 Tower 2

Tokyo - Omotesando Building, 5-1-5 Jingumae

Production facilities Comunanza (AP) - Via Merloni, 7

Comunanza (AP) - Via S.Maria, 2-4-6

Sant'Elpidio a Mare (FM) - Via Fil ippo Della Valle, 1

Bagno a Ripoli, Loc. Vallina (FI) - Via del Roseto, 60

Bagno a Ripoli, Loc. Vallina (FI) - Via del Roseto, 50

Tolentino (MC) - Via Sacharov 41/43


06.30.2011

2 Corporate Governance bodies

Corporate Governance bodies

Board of directors ( 1)

Diego Della Valle Chairman

Andrea Della Valle Vice- Chairman

Luigi Abete

Maurizio Boscarato

Luigi Cambri

Luca Cordero di Montezemolo

Emanuele Della Valle

Fabrizio Della Valle

Emilio Macellari

Pierfrancesco Saviotti

Stefano Sincini

Vito Varvaro

Executive Committee Diego Della Valle Chairman

Andrea Della Valle

Fabrizio Della Valle

Emilio Macellari

Stefano Sincini

Vito Varvaro

Compensation Luigi Abete Chairman

Committee Luigi Cambri


Internal Control and Maurizio Boscarato Chairman

Corporate Governance Luigi Cambri

Committee Pierfrancesco Saviotti

Independent Directors Luigi Abete Chairman

Committee Luigi Cambri


Board of statutory ( 2 )

Enrico Colombo Chairman

Auditors Fabrizio Redaelli Acting stat. auditor

Gian Mario Perugini Acting stat. auditor

Gilfredo Gaetani Substitute auditor

Massimo Foschi Substitute auditor

Independent Auditors ( 3)

Deloitte & Touche S.p.A.

Manager charged with preparing Rodolfo Ubaldi

a company’s financial report

( 1 ) Term of the off ice: 2009 -2011 (resolut ion of the Shareholders ’ meeting as of Apri l 20 t h , 2009)

( 2 ) Term of the off ice: 2010 -2012 (resolut ion of the Shareholders ’ meeting as of A pri l 22 n d , 2010)

( 3 ) Term of the off ice: 2006 -2011 (resolut ion of the Share holders ’ meeting as of Apri l 28 t h , 2006)


06.30.2011

3 TOD’S Group

TOD’S Group

TOD’S S.p.A. Parent Company, owner of TOD’S, HOGAN and FAY brands and l icensee of ROGER VIVIER brand.

Del.Com. S.r.l. Subholding for operation of national subsidiaries and DOS in Italy.

TOD’S International B.V. Subholding for operation of international subsidiaries and DOS in The Netherlands.

An.Del. Usa Inc. Subholding for operation of subs idiar ies in the United States.

Del.Pav S.r.l. Company that operates DOS in I taly .

Filangieri 29 S.r.l. Company that operates DOS in I taly .

Gen.del. SA Company that operates DOS in Switzer land. TOD’S Belgique S.p.r.l. Company that operates DOS in Belg ium.

TOD’S Deutschland Gmbh Company that distr ibutes and promotes products in Germany and manages DOS in Germany. TOD’S Espana SL Company that operates DOS in Spain.

TOD’S France Sas Company that distr ibutes and promotes products in France and manages DOS in France.

TOD’S Luxembourg S.A. Company that operates DOS in Luxembourg.

TOD’S Hong Kong Ltd Company that distributes and promotes products in Far East and South Pacific and manages DOS in Hong Kong. TOD’S Japan KK Company that operates DOS in Japan.

TOD’S Korea Inc. Company that promotes products in Korea.

TOD’S Macao Ltd Company that operates DOS in Macao.

TOD’S Retail India Private Ltd Company that operates DOS in India . TOD’S Saint Barth Sas Not operating company .

TOD’S (Shanghai) Trading Co. Ltd Company that operates DOS in China. TOD’S Singapore Pte Ltd Company that operates DOS in S ingapore.

TOD’S UK Ltd Company that operates DOS in Great Br itain.

Webcover Ltd Company that distr ibutes and promotes products in Great Br itain and manages DOS in Great Br itain.

Cal.Del. Usa Inc. Company that operates DOS in Cal ifornia (USA).

Colo. Del. Usa Inc. Not operating company .

Deva Inc. Company that distr ibutes and promotes products in North America, and manages of DOS in New Jersey (USA).

Flor. Del. Usa Inc. Company that operates DOS in F lor ida (USA). Hono. Del. Inc. Company that operates DOS in Hawa ii (USA). I l. Del. Usa Inc. Company that operates DOS in I ll inois (USA). Neva. Del. Inc. Company that operates DOS in Nevada (USA). Or. Del. Usa Inc. Company that operates DOS in Cal ifornia (USA). TOD’S Tex. Del. Usa Inc. Company that operates DOS in Texas (USA). Sandel SA Not operating company . Un.Del. Kft Production company. Alban.Del Sh.p.k. Production company. Holpaf B.V. Real estate company .

Re.Se.Del. S.r.l. Company for services.


06.30.2011

4 TOD’S Group

Group ’s organizational chart

TOD’S S.p.A.

TOD’S International BVAmsterdam – The Netherlands

S.C. - Euro 2,600,200

An.Del. USA Inc.New York U.S.A.

S.C. - Usd 3,700,000

Del.Com S.r.l.S.Elpidio a Mare - Italy

S.C. - Euro 31,200

TOD’S Hong Kong LtdHong Kong

S.C. - Usd 16,550,000

TOD’S UK LtdLondon – Great Britain

S.C. - Gbp 350,000

TOD’S Belgique S.p.r.l.Bruxelles - BelgiumS.C. - Euro 300,000

TOD’S Espana SLMadrid – Spain

S.C. - Euro 468,539.77

TOD’S Japan KKTokio - Japan

S.C. - Jpy 100,000,000

TOD’S Korea Inc Seoul - Korea

S.C. Won 1,600,000,000

TOD’S Saint Barth SasSaint Barthélemy

S.C. - Euro 500,000

TOD’S Singapore LtdSingapore

S.C. - Sgd 300,000

Un.Del KftTata - Hungary

S.C. - Huf 42,900,000

TOD’S Luxembourg S.A.Luxembourg

S.C. Euro 31,000.00

TOD’S Macao LdaMacao

S.C. Mop 20,000,000

TOD’S France SasParis - France

S.C. - Euro 780,000

TOD’S Deutschland GmbhDusseldorf - GermanyS.C. - Euro 153,387.56

Cal.Del. USA Inc.Beverly Hills, Ca U.S.A.

S.C. - Usd 10,000

Colo.Del. USA IncDenver, Co U.S.A.S.C. - Usd 10,000

Deva Inc.Wilmington, DE U.S.A.

S.C. - Usd 500,000

Flor.Del. USA Inc.Tallahassee, Fl U.S.A.

S.C. - Usd 10,000

Hono.Del. Inc.Honolulu, Hi U.S.A.S.C. - Usd 10,000

Del.Pav. S.r.l.S.Elpidio a Mare - Italy

S.C. - Euro 50,000

Re.Se.Del. S.r.l.S.Elpidio a Mare - Italy

S.C. - Euro 25,000

Filangieri 29 S.r.l.S.Epidio a Mare- ItalyS.C. - Euro 100,000

TOD’S (Shanghai) Trading Co. LtdShanghai- China

S.C. Usd 6,000,000

TOD’S India Retail Private LtdMumbai – India

S.C. Inr 193,900,000

Webcover LtdLondon – Great Britain

S.C. - Gbp 1,000

Il.Del. USA Inc.Springfield, Il U.S.A.

S.C. - Usd 10,000

Neva.Del. Inc.Carson City, Nv U.S.A.

S.C. - Usd 10,000

Or.Del. USA Inc. Sacramento, Ca U.S.A.

S.C. - Usd 10,000

100%

100%

100%

100%

90%

99%

100%

100%

100%

100%

50% 50%

Gen.Del. SAZurich – Switzerland

S.C. Chf 200,000

Sandel SASan Marino

S.C. - Euro 258,000

1%

TOD’S Tex. Del. Inc.Dallas, Tx U.S.A

S.C. - Usd 10,000

100%

ALBAN.DEL Sh.p.kTirana – Albania

S.C. – Euro 720,000

100%

1% 99%

10%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

50%

50%

50%

100%

1%

100% 100%

Holpaf B.V.Amsterdam – The Netherlands

S.C. - Euro 5,000,000100%


06.30.2011

5 Distr ibution network

Distribution network as of June 30t h

2011

Total

RoW

Saudi Arabia

Bahrain

U.A.E.

Kuwait

Lebanon

Qatar

Total

Asia

Japan

China

Korea

(D)=DOS (F)=FRANCHISING

RoW (D) (F)Saudi Arabia 2Baharain 2United Arab E. 5Kuwait 2Lebanon 2Qatar 1Total 14

USA (D) (F)U.S.A. 14

(D)=DOS (F)=FRANCHISED STORES

Asia (D) (F)Japan 27 1China 20 4Korea 9 7Philippines 2Hong Kong 8 1India 2Indonesia 3Macao 1 1Malaysia 2Singapore 2 1Taiwan 14Thailandia 3U.S.A. 1Total 69 40

(D)=DOS (F)=FRANCHISED STORES

Europe (D) (F)

Italy 41 5

Belgium 1 France 11 Germany 9 Great Britain 5 Greece

5

Luxembourg 1 Netherlands 1 Portugal

1

Russia

2

Spain 2 1

Switzerland 3 Turkey

1

Total 74 15

RoW (D) (F)

Saudi Arabia

2

Bahrain

2

U.A.E.

5

Kuwait

2

Lebanon

2

Qatar

1

Total 14

Asia (D) (F)

Japan 27 1

China 24 4

Korea 8 7

Philippines

2

Hong Kong 9 1

India 2 Indonesia

3

Macau 1 1

Malaysia

3

Singapore 2 1

Taiwan

15

Thailand

2

U.S.A.

1

Total 73 41

USA (D) (F)

U.S.A. 14 Total 14

DOS, 2011 new openings Franchised stores, 2011 new openings Far East Far East Nanning (China) Taipei (Taiwan) Zhengzhou (China) Kuala Lumpur (Malays ia) Hong Kong (China) T ianj in (China)

Europe Madrid (Spain) Milan ( I taly )

For a complete l ist of retail outlets ope rated by the DOS and franchising network, reference should be made to the corporate web site: www.todsgroup.com

http://www.todsgroup.com/


06.30.2011

6 Key financial f igures

Key consolidated financial figures

P&L key figures (Euro mn)

H1 2011 H1 2010 H1 2009 H1 2008

Revenues 439.5 377.5 359.0 347.0

EBITDA 115.6 26.3% 90.7 24.0% 78.9 22.0% 76.1 21.9%

EBIT 96.4 21.9% 74.3 19.7% 63.2 17.6% 61.5 17.7%

PRE-TAX 96.9 22.0% 77.0 20.4% 62.5 17.4% 60.3 17.4%

Net income 66.1 15.0% 52.4 13.9% 43.1 12.0% 39.9 11.5%

Key Balance Sheet figures (Euro mn)

06.30.11 12.31.10 06.30.10

Net working capital (*) 209.8 298.7 193.4

Net fixed capital 375.4 363.2 301.6

Shareholder's equity 617.5 618.4 667.0

Net financial position 88.7 96.5 200.3

Capital expenditures 37.7 96.1 16.1

(*) Trade receivables + inventories – trade payables

Financial key figures (Euro mn)

06.30.11 12.31.10 06.30.10

Self-financing 83.7 144.8 61.7

Cash flow from operation 70.2 169.0 89.6

Free cash flow (12.8) (44.7) 22.3

H1 11 Revenues - % by brand

H1 11 Revenues - % by region

H1 11 Revenues - % by product

TOD'S54.5%

HOGAN33.8%

FAY8.1%

Roger Vivier3.5%

Altro0,1%

Italy51.4%

Europe20.8%

North Am.6.7%

RoW21.1%

Shoes74.1%

Leather goods16.5% Appar.

9.3%Altro0.1%


06.30.2011

7 Key financial f igures

The Group employees

06.30.11 12.31.10 06.30.10 06.30.09

Year to date 3,416 3,194 3,102 2,820

EX = executives

WHC = white collar employees

BLC = blue collar employees

2011 Group employees

EX1%

WHC66%

BLC33%

Main Stock Market indicators (Euro) – TOD’S S.p.A.

S h a r e s ’ p r i c e

Official price at January 3 t h 2011 74.71

Official price at June 30 t h 2011 91.35

Minimum price (January-June) 70.33

Maximum price (January-June) 98.45

M a r k e t c a p i t a l i z a t i o n

At January 3 t h 2011 2,286,925,381

At June 30 t h 2011 2,796,199,391

D i v i d e n d p e r s h a r e

Extraordinary Dividend 2010 3.50

Year 2010 2.00

Year 2009 1.50

O r d i n a r y s h a r e s

Number of outstanding shares 30,609,401

Stock performanceEarning per share (euro)

2.14

1.69

1.391.29

HI 2011 HI 2010 HI 2009 H1 2008

65,00

70,00

75,00

80,00

85,00

90,00

95,00

100,00

Euro

January - June 2011


06.30.2011

8 Highlights of results

Highlights of results

Revenues: revenues totalled 439.5 mill ion euros

during the period (the average change in foreign

exchange rates had a positive impact of 1.0

mill ion euros), equivalent to growth of 16.4%

from H1 2010. Sales by the DOS network

totalled 227.0 mill ion euros (+22.4%).

EBITDA: this grew by 27.5%, to 1 1 5 . 6 mill ion

euros. At June 30t h

2011, it was equivalent to

26.3% of sales (H1 2010: 24.0%).

EBIT: this totalled 9 6 . 4 mill ion euros, +29.8%

compared with H1 2010 (74.3 mill ion euros).

When measured on a comparable exchange rate

basis, EBIT totalled 9 4 . 9 mill ion euros

(+2 7 . 8 %).

Net financial position (NFP): the Group had

157.0 mill ion euros in l iquid assets at June 30t h

2011. Its net f inancial position was 88.7 mill ion

euros at the same date.

Capital expenditures: 37.7 mill ion euros in

capital expenditures were made in H1 201 1, in

H1 2010 amounted to 16.1 mill ion euros .

Distribution network: at June 30t h

the single

brand distribution network comprised 1 61 DOS

and 70 Franchised stores.

Sales revenues (Euro mn)

EBITDA (Euro mn)

EBIT (Euro mn)

NFP (Euro mn)

438,5 439,5

377,5 359,0 347,0

H1 11 comp. ex. rates basis

H1 11 H1 10 H1 09 H1 08

114,2 115,6

90,7

78,9 76,1


H1 11 H1 10 H1 09 H1 08

94,9 96,4

74,3

63,2 61,5


H1 11 H1 10 H1 09 H1 08

88,7

200,3

100,0

52,8

06.30.11 06.30.10 06.30.09 06.30.08

Interim Report

Group


06.30.2011

10 Interim report

Group ’s activity

TOD’S Group operates in the luxury sector under its proprietary brands (TOD’S, HOGAN, and FAY)

and licensed brands (ROGER VIVIER). It actively creates, produces and distributes shoes, leather

goods and accessories, and apparel. The firm’s mission is to offer global customers top-quality

products that satisfy their functional requirements and aspirations.

Development of production. Group’s production structure is based on complete control of the

production process, from creation of the collectio ns to production and then distribution of the

products. This approach is considered key to assuring the prestige of its brands.

Shoes and leather goods are produced in Group -owned plants, with partial outsourcing to

specialized workshops. All of these ou tsourcers are located in areas with a strong tradition of

shoe and leather good production. This preference reflects the fact that an extremely high

standard of professional quality is required to make these items, with a significantly high level of

added value contributed to the final product by manual work.

The Group relies exclusively on selected specialized outsourcers, which enables it to exploit their

respective specializations in crafting the individual products sold as part of the apparel l ine.

Distribution structure. The prestige of Group’s brands and the high degree of specialization

necessary to offer the respective products to customers entails distribution through a network of

similarly specialized stores. Accordingly, the Group relies pr incipally on three channels: DOS

(directly operated stores), franchised retail outlets, and a series of selected, independent

multibrand stores. Group’s strategy is focused on development of the DOS and franchising

networks, given that these channels offer greater control and more faithful transmission of the

individual brands. It is also clear that, in particular market situations, distribution through

independent multibrand stores is more efficient. This channel is of key importance to the Group.

Group’s brands

The Tod’s brand is known for shoes and luxury leather goods, with styles that

have became icons of modern living. Tod’s is known in the luxury goods sector as a symbol of the

perfect combination of tradition, quality and modernity. Each product is hand-crafted with

highly-skil led techniques, intended, after laborious reworking, to become an exclusive,

recognisable, modern and practical object. Some styles, l ike the Driving Shoe and the D bag, are


06.30.2011

11 Interim report

cherished by celebrities and ordinary people worldwide, and have become icons and forerunners

of a new concept of elegance, for both women and men .

Begun in the 80s with shoe collections for women, men and children, the

Hogan brand now also crafts various leather goods items. The Hogan brand is distinctive for high

quality, functionality and design. Every product stems from a highly skil led design technique and

is created using quality materials with a particular passion f or details and a search for perfection.

Hogan products are the highest expression of a “new luxury” lifestyle. Hogan is meant for

someone who cherishes the type of luxury associated with product excellence, innovative original

design and consummate practic ality. The Traditional and the Interactive shoe styles endure as

continuing “best sellers”.

FAY is a brand created in the mid 80s with a product range of high quality casual

wear. The brand is known for its quality craftsmanship, for the excellence of its materials, a

meticulous attention to craft details and its high functionality without sacrif icing style and

quality. FAY products are wearable everywhere: from the stadium to the office, in urban areas

and in the countryside. The line, which has seasonal men’s, women’s and junior’s collect ions,

focuses on classic evergreen styles, continuously modified and refreshed with innovative and

recognisably eye-catching design.

Organizational structure of the Group

Group’s organisational configuration rotates around TOD’S S.p.A. that is at the heart of Group’s

organisation, its parent company that owns TOD’S,HOGAN and FAY brands, holds the licenses to the

ROGER VIVIER, and manages Group’s production and distribution . Through a series of sub-holdings,

the organisation is rounded out by a series of commercial companies that are delegated complete

responsibility for retail distribution through the DOS network. Certain of them, strategically located

on international markets, are assigned major roles in product distribution, marketing and promotion,

and public relations processes along the “value chain”, while simultaneously guaranteeing the

uniform image that Group brands must have worldwide.

Foreign currency markets

Comparative analysis of the average exchange rates for the euro against other major currencies

between January and June 2011 and the first half of 2010 reveals a general increase in the value of


06.30.2011

12 Interim report

the euro with respect to the U.S. dollar and currencies that are linked to it , and a decrease with

respect to the other currencies, among which Swiss Franc, Japanese Yen and Singapore Dollar .

0.2%

13.1%

-5.6%

4.8%

-5.5%

5.4%

-1.4%GBP CHF HKD SGD USD JPY RMB

Change (%) on exchange rate - major extra/UE currencies

Change vs H1 2010 average

Main events and operations during the period

The results realised during H1 2011 confirm broadly the same growth rates of revenue and

operating margin as the ones already performed in the 1s t

quarter 2011. Sales, mainly driven by

the acceleration of TOD’S brand , show the appeal of Group ’s trademarks in all the markets ,

particularly important in international ones, driven by outstanding results of Greater China

(China, Hong Kong, Macao and T aiwan). Strong acceleration of revenue has been performed also

in the US market, where an inversion of the trend has been confirmed in respect of last period s.

Nonetheless, the first half of the year was characterised by two major initiatives taken by the

Group to protect and promote Italian heritage . The first of these involves its full f inancial

support, as sole sponsor, for restoration of the Coliseum, based on the agreement reached

January 21s t

2011 with the Ministry of Cultural Affairs ( Ministero per i Beni e le Attività Culturali )

and the Supervisor for central Rome's archaeological area (Soprintendenza speciale per i beni

archeologici). The financial commitment assumed by the Group for this monument, a symbol of

Italian history and culture, total s 25 mill ion euros. It will be disbursed in instalments over the

entire duration of restoration work. The Soprintendenza speciale per i beni archeologici di Roma

will be responsible for planning and executing the work . Following a favourable resolution by the

Shareholders’ Meeting on May 16t h

2011, Tod’s S.p.A. acquired the status of Permanent Founding

Member of Fondazione Teatro alla Scala in June. By donating 5.2 mill ion euros to that

foundation, which will be payable in four years , Tod’s S.p.A. has confirmed its wish to assist La

Scala opera house, with its glorious reputation and excellent organisation, preserve its world

status as a shining example of “made in Italy” .


06.30.2011

13 Interim report

The Group’s results in HY 2011

The half-year results of the Group confi rm the growth trend reported for the first three months

of FY 2011.

Supported by the excellent performance of the DOS network, especially in Asia and United States

(with aggregate DOS sales totalling 227 mill ion euros in H1 2011, for growth of 22.4% from 2 010),

revenue during the period totalled 439.5 mill ion euros. That was up 62 mill ion euros from the

377.5 mill ion euros reported in the same period of 2010, representing an increase of 16.4%. The

effect of changes in average exchange rates was negligible. On a l ike-for-like cross-rate basis,

revenues would have been 438.5 mill ion euros, with a growth rate of 16.2%.

The product leverage effect on operating income was extremely positive, both on account of the

significant growth in revenue and its compositio n, which was concentrated in markets (Asia) and

merchandise categories ( leather goods and accessories) having higher margins, while the organic

component was preponderant. Earnings consequently grew at strong rates. Compared with H1

2010, EBITDA and EBIT grew by 27.5% and 29.8%, respectively, to 115.6 mill ion euros and 96.4

mill ion euros, respectively. In H1 2011, EBITDA represented 26.3% of revenues, more than 230

basis points higher than the figure for the same period of 2010 (24%). EBIT was equal to 21.9 % of

sales, compared with 19.7% in 2010.

Net consolidated income turned in exactly the same performance. With a tax rate that was

substantially identical, net income for the period was 66.1 mill ion euros (52.4 mill ion euro s at

June 2010), up 26%, or 13.7 mill ion euros. (Euro 000 ’s)

FY 10 Main P&L indicators H1 2011 H1 2010 Change %

7 8 7 , 5 3 9 S a l e s r e v e n u e s 4 3 9 , 4 5 8 3 7 7 , 4 6 2 6 1 , 9 9 6 1 6 . 4

1 9 3 , 0 5 9 E B I T D A 1 1 5 , 6 1 6 9 0 , 6 9 3 2 4 , 9 2 3 2 7 . 5

( 3 3 , 1 1 5 ) D e p r. , a m o r t . , w r i t e - d o w n s ( 1 9 , 2 0 0 ) ( 1 6 , 4 2 5 ) ( 2 , 7 7 5 ) 1 6 . 9

1 5 9 , 9 4 4 E B I T 9 6 , 4 1 6 7 4 , 2 6 8 2 2 , 1 4 8 2 9 . 8

1 6 3 , 3 5 2 P r e - t a x p r o f i t 9 6 , 8 6 5 7 6 , 9 6 9 1 9 , 8 9 6 2 5 . 8

1 1 0 , 7 8 6 C o n s o l i d a t e d n e t i n c o m e 6 6 , 0 6 4 5 2 , 4 2 1 1 3 , 6 4 3 2 6 . 0

F o r e i g n e x c h a n g e i m p a c t o n r e v e n u e s ( 9 2 3 )

A d j u s t e d s a l e s r e v e n u e s 4 3 8 , 5 3 5 3 7 7 , 4 6 2 6 1 , 0 7 3 1 6 . 2

F o r. e x c h . i m p a c t o n o p e r a t i n g c o s t ( 5 1 2 )

A d j u s t e d E B I T D A 1 1 4 , 1 8 1 9 0 , 6 9 3 2 3 , 4 8 8 2 5 . 9

F o r. e x c h . i m p a c t o n d e p r e c . & a m o r t . ( 8 0 )

A d j u s t e d E B I T 9 4 , 9 0 1 7 4 , 2 6 8 2 0 , 6 3 3 2 7 . 8

E B I T D A % 2 6 . 3 2 4 . 0

E B I T % 2 1 . 9 1 9 . 7

A d j u s t e d E B I T D A % 2 6 . 0 2 4 . 0

A d j u s t e d E B I T % 2 1 . 6 1 9 . 7

Ta x r a t e % 3 1 . 8 3 1 . 9


06.30.2011

14 Interim report

(Euro 000 ’s)

06.30.10 Main Balance sheet indicators 06.30.11 12.31.10 Change 1 9 3 , 3 8 2 N e t w o r k i n g c a p i t a l ( * ) 2 0 9 , 8 1 0 1 9 2 , 6 8 8 1 7 , 1 2 2

3 0 1 , 6 2 1 N o n - c u r r e n t a s s e t s 3 7 5 , 4 1 1 3 6 3 , 1 8 6 1 2 , 2 2 5

( 2 8 , 3 0 0 ) O t h e r c u r r e n t a s s e t s / l i a b i l i t i e s ( 5 6 , 5 0 7 ) ( 3 3 , 9 2 8 ) ( 2 2 , 5 7 9 )

466,703 Invested Capital 528,714 521,946 6,768

2 0 0 , 2 9 9 N e t f i n a n c i a l p o s i t i o n 8 8 , 7 4 8 9 6 , 4 9 5 ( 7 , 7 4 7 )

667,002 Shareholder’s equity 617,462 618,441 (979)

1 6 , 1 1 2 C a p i t a l e x p e n d i t u r e s 3 7 , 6 7 7 9 6 , 0 6 7 ( 5 8 , 3 9 0 )

8 9 , 5 5 3 C a s h f l o w f r o m o p e r a t i o n 7 0 , 1 7 7 1 6 8 , 9 5 0 ( 9 8 , 7 7 3 )

2 2 , 3 2 3 F r e e c a s h f l o w ( 1 2 , 7 9 4 ) ( 4 4 , 7 0 8 ) 3 1 , 9 1 4

( * ) Trade rece ivables + inventor ies – t rade payables

Revenues. Consolidated sales were 439.5 million euros in the first half of 2011, up 16.4% from H1

2010. All the distribution channels posted outstanding performances, in all the product categories

and the geographical regions .

In the first half of 2011, revenues to third parties totalled 212.5 million euros, with growth of

10.7% from H1 2010. The DOS network posted excellent results ; in the first six months of 2011,

revenues through DOS globally amounted to 227 mill ion euros, with growth of 22.4% from H1

2010 (+21.6% in Q1

2011, +22.9% in Q2

2011). As of June

30th

2011, the

Group’s distribution

network is

represented by 161

DOS and 70

franchised stores,

compared to 151

DOS and 71

(Euro mn) H1 2011 % H1 2010 % Change %DOS 227.0 51.6 185.5 49.1 41.5 22.4Third parties (WS) 212.5 48.4 192.0 50.9 20.5 10.7Total 439.5 100.0 377.5 100.0 62.0 16.4

DOS51,6%

Third parties (WS)

48,4%

DOSDOS

WS

WS

0

50

100

150

200

250

300

350

400

H1 2011 H1 2010

DOS51.6%

Third parties (WS)

48.4%

DOSDOS

Third parties (WS) Third parties

(WS)

0

50

100

150

200

250

300

350

400

450

H1 2011 H1 2010

franchised stores as of June 30th 2010. The organic growth was brill iant: the Same Store Sales

Growth (SSSG) rate, calculated as the worldwide average of sales growth rates reported by DOS

opened as of January 1st, 2010 , was 17.2% for the first 31 weeks of the year (from January 1st to

July 31st, 2011), showing an acceleration versus the first months of the year, despite a more

challenging comparison basis.

The Tod’s brand achieved excellent results, showing an acceleration of its growth (+19.3% in Q1

2011, +25.6% in Q2 2011), driven by the outstanding results of the DOS network, in all the product

categories and the geographical regions . In the first half of 2011, the brand’s sales totalled 239.7


06.30.2011

15 Interim report

million euros, up 22.3% from H1 2010. Revenues of the Hogan brand were 148.3 million euros, with

growth of 7.9% from H1 2010, driven by the organic growth in It aly. The brand is currently focused

on its expansion abroad, with emphasis on the Asian markets, where some stores are scheduled to

be opened in the next few months.

The Fay brand

totalled 35.4 million

euros of sales, with

growth of 3.3% from

H1 2010, driven by

the Italian market, as

well. Finally, the

Roger Vivier brand’s

revenues were 15.6

million euros in H1

2011, up 64.3% from

H1 2010. This growth

rate is considerable,

(Euro mn) H1 2011 % H1 2010 % Change %

TOD'S 239.7 54.5 195.9 51.9 43.8 22.3HOGAN 148.3 33.8 137.5 36.4 10.8 7.9FAY 35.4 8.1 34.3 9.1 1.1 3.3RV 15.6 3.5 9.5 2.5 6.1 64.3Other 0.5 0.1 0.3 0.1 0.2 n.s.Total 439.5 100.0 377.5 100.0 62.0 16.4

TOD'S54,5%

HOGAN33,7%

FAY8,1%

RV2,5%

TOD'STOD'S

HOGAN

HOGAN

FAY

RV

0

50

100

150

200

250

300

350

400

H1 2011 H1 2010

TOD'S54.5%

HOGAN33.8%

FAY8,.%

RV3,5%

TOD'STOD'S

HOGAN

HOGAN

FAY

FAY

RV

RV

0

50

100

150

200

250

300

350

400

450

H1 2011 H1 2010

despite we continue to remind that this brand is still consolidating its positio ning among the most

exclusive luxury brands worldwide.

The Group confirms its leadership in the core business of shoes, thanks to the outstanding

performances of the Tod’s and Hogan brand. This product category totalled 325.5 million euros

of revenues in H1

2011, up 15.3% from

H1 2010. Sales from

leather goods and

accessories posted a

significant acceleration

of their performance

(+21.6% in Q1 2011,

+29.7% in Q2 2011),

driven by the

outstanding results of

(Euro mn) H1 2011 % H1 2010 % Change %

Shoes 325.5 74.1 282.4 74.8 43.1 15.3Leather goods 72.7 16.5 57.8 15.3 14.9 25.7Appareal 41.0 9.3 37.0 9.8 4.0 10.7Other 0.3 0.1 0.3 0.1 0.0 n.s.Total 439.5 100.0 377.5 100.0 62.0 16.4

Shoes74,1%

Leather goods16,5%

Appar.9,3%

Other0,1%

ShoesShoes

Leather goods

Leather goods

Apparel

0

50

100

150

200

250

300

350

400

H1 2011 H1 2010

Shoes74.8%

Leather goods15.3%

Appar.9.8%

ShoesShoes

Leather goods

Leather goods

Appar.

Appar.

0

50

100

150

200

250

300

350

400

450

H1 2011 H1 2010

the Tod’s brand in the whole collection of handbags and accessories . The Group’s revenues of this

product category totalled 72.7 million euros in H1 2011, up 25.7% from H1 2010. Finally, sales from

apparel totalled 41 million euros in H1 2011, with growth of 10.7% from H1 2010.

All the regions, where the Group operates, posted double -digit growth rates. The Group confirmed

its leadership in Italy, with all its brands. In H1 2011 sales on the domestic market totalled 226.1


06.30.2011

16 Interim report

million euros (up

+11% from H1 2010).

Sales in the rest of

Europe totalled 91.2

million euros in H1

2011, with growth of

13.5% from H1 2010.

Strong acceleration

of the US market

(+5.3% in Q1 2011,

+23.5% in Q2 2011),

driven by the

(Euro mn) H1 2011 % H1 2010 % Change %

Italy 226.1 51.4 203.7 54.0 22.4 11.0Europe 91.2 20.8 80.3 21.3 10.9 13.5North America 29.3 6.7 25.5 6.7 3.8 15.2RoW 92.9 21.1 68.0 18.0 24.9 36.6Total 439.5 100.0 377.5 100.0 62.0 16.4

Italy51.4%

Europe20.8%

Nord Am.6,8%

RoW21.1%

Italy Italy

EuropeEurope

North. Am.

North. Am.

RoW

RoW

0

50

100

150

200

250

300

350

400

H1 2011 H1 2010

Italy54.0%

Europe21.3%

North Am.6.7%

RoW21.1%

Italy Italy

EuropeEurope

North Am.North Am.

RoW

RoW

0

50

100

150

200

250

300

350

400

450

H1 2011 H1 2010

excellent results of the DOS channel. In H1 2011, the Group’s sales in the US totalled 29.3 million

euros (up 15.2% from H1 2010; +18% at constant exchange rates) . Finally, revenues for the area

“Rest of World” totalled 92.9 million euros in H1 2011, with growth of 36.6% from H1 2010. The

acceleration of the Asian performance was driven by the excelle nt results of mainland China, and

Hong Kong. Japanese revenues grew in H1 2011, despite the tragic events which hit the country,

mainly due to the more favourable currency exchange rate .

O p e r a t i n g r e s u l t s . EBITDA in H1 2011 totalled 115.6 mill ion euros, up 24.9 mill ion euros from

the amount reported in H1 2010, when it was 90.7 mill ion euros. Gross operating profit was thus

equivalent to 26.3% of consolidated revenue (H1 2010: 24%).

The change on a comparable exchange rate basis was negligible. In this case, EBITDA would be

about 114.2 mill ion euros, and would represent about 26% of sales. In absolute terms, growth

would amount to 23.5 mill ion euros.


06.30.2011

17 Interim report

As previously mentioned, the positive effects on

operating results were generated by a

composition of sales where higher margin

components made a greater contribution

(geographical areas and product categories),

which were only partially absorbed by the

structural growth in overhead costs, tied to

development of business volumes. Lease and rental

expenses ( leases of locations and royalties for use

of l icenses) totalled 30.4 mill ion euros at June

30t h

2011, up 2.2 mill ion euros from 2010. They

represented 7.5% of revenue at June 30t h

2010

and 6.9% at June 30t h

2011.

EBITDA (Euro mn)

114,2 115,6

90,7

H1 2011 comparable exch. rate basis

H1 2011 H1 2010

The cost for Group employee remuneration totalled 63.1 mill ion euros, compared with 57.8

mill ion euros in the first six m onths of the previous year. The change is mainly connected with

the increase in headcount, with a total of 3,416 employees at June 30t h

2011, or 222 and 314

persons more than at December 31s t

and June 30th

2010, respectively. The increase in employees

stems mainly from reinforcement of the Group production organisation, as well as opening of new

boutiques during the first half . At June 30t h

2011, employee costs equalled 14.4% of Group

revenue, as compared with 15.3% in the first six months of 2010.

Amortisation and depreciation expenses grew,

from 15.8 mill ion euros in H1 2010, to 18.4 mill ion

euros in H1 2011, while their ratio to revenue

remained constant at 4.2%. Net of additional

operating provisions of 0.8 mill ion euros, EBIT in

H1 2011 totalled 96.4 mill ion euros (74.3 mill ion

euros in H1 2010) and was equal to 21.9% of

Group sales, up significantly from 19.7% in H1

2010).

On a comparable exchange rate basis, EBIT would

have been 94.9 mill ion euros, and would be equal

to 21.6% of revenues.

EBIT (Euro mn)

94,9 96,4

74,3

H1 2011 comparable exch. rate basis

H1 2011 H1 2010

TOD’S Group

2011 Half Year Financial Report 06.30.2011

18 Interim report

Net financial income for the period was slightly above th e break-even point, at a positive 0.4

mill ion. Consolidated net income in H1 2011 was 66.1 mill ion euros, representing growth of

26.0% from the figure for the same period of the previous year (f irst six months of 2010: 52.4

mill ion euros). At June 30t h

2011, net income was equal to 15.0% of revenue, compared with

13.9% in H1 2010. Net income shows the result after income taxes accrued for the period

(including the effects of deferred taxes) totalling 30.8 mill ion euros, for a tax rate of 31.8%

(31.9% in H1 2010).

Capital expenditures. Capital expenditure in H1 2011 totalled 37.7 mill ion euros. This increase

includes about 20.0 mill ion euros to reflect the intangible asset in relation to the agreement

signed for f inancing of restoration work on the Coliseum. Net of this asset, the outlay for

operating capital expenditure totalled 17.7 mill ion euros, compared with 16.1 mill ion euros in

the same period of 2010.

37.7

16.1

96.1

21.3

40.8

H1 2011 H1 2010 FY 2010 FY 2009 FY 2008

Tangible & intangible assets -Capital expenditures(Euro mn)

The capital expenditure during the period by the DOS network totalled about 8.6 mill ion euros.

This amount was used primarily to expand the

DOS network in mainland China, with four new

store openings in H1 2011, as well as the

fitting out of two new TOD’S brand store

corners in Milan and Madrid. TOD’S retail

outlet space in Madrid was expanded and

TOD’S boutique in Düsseldorf was renovated

during the same period.

INVESTMENTS BY ALLOCATION

DOS23%

Prod.12%

Other65%


06.30.2011

19 Interim report

Net financial position (NFP). At June 30t h

2011, net f inancial position was positive and equal to

88.7 mill ion euros (200.3 mill ion euros at June 30t h

2010), including liquid assets (cash and bank

deposits) for 157.0 mill ion euros, and liabilities for 68.3 mill ion euros, of which 37.8 mill ion

euros for long-term exposures.

Net Financial position (Euro 000 ’s)

06.30.10 06.30.11 12.31.10 Change Current f inancial assets

232,119 Cash and cash equivalents 157,017 171,729 (14,712)

232,119 Current f inancial assets 157,017 171,729 (14,712)

Current f inancial l iabilit ies

(24,267) Current account overdraft (25,343) (27,283) 1,940

(1,521) Current share of medium-long term financing (5,168) (5,146) (22) (25,788) Current f inancial l iabilit ies (30,511) (32,429) 1,918

206,331 Current net f inancial position 126,506 139,300 (12,794)

Non-Current f inancia l l iabilit ies (6,032) Financing (37,758) (42,805) 5,047

(6,032) Non-Current f inancial l iabilit ies (37,758) (42,805) 5,047

200,299 Net f inancial position 88,748 96,495 (7,747)

Net financial position at June 30t h

2011 amounts to 88.7 mill ion euros (96.5 mill ion euros at

December 31s t

2010). Gross of dividends paid, net f inancial position would be equal to 150.0

mill ion euros (+53.5% mill ions in respect to December 31s t

2010).

(Euro 000 ’s) Cash Flows H1 2011 H1 2010

Profit ( loss) for the period 65,409 51,618

Non cash items 18,283 10,083

Cash Flow 83,692 61,701

Changes in operating net working capital (13,515) 27,852

Operating cash flow 70,177 89,553

Cash Flow from (used in) investment activity (31,270) (17,180)

Cash Flow from (used in) f inancing activity (51,701) (50,050)

Cash Flow from (used in) continuing operation (12,794) 22,323

Cash flow from assets held for sale 0 0

Cash Flow generated (used) (12,794) 22,323

Net f inancial position at the beginning of the period 139,300 184,008

Net financial position at the end of the period 126,506 206,331

Change in current net f inan cial position (12,794) 22,323

Cash flow was 83.7 mill ion euros in H1 2011, up 22 mill ion euros from H1 2010. Operating cash

flow was 70.2 mill ion euros (89.6 mill ion euros at June 30t h

2010), due to greater use of working

capital, largely connected with the temporary accumulation of inventories due to the advanced


06.30.2011

20 Interim report

stage of production for the next Fall -Winter collection, which will be sold entirely in the second

half.

The value of investments to finance capital expenditure and distribution of dividends also grew.

Net of these, the free cash flow used in the period totalled 12.8 mill ion euros .

Significant events occurring after the end of the period

No significant events affecting the Group’ activities occurred after the end of H1 2011.

Business Outlook

The most important signals resulting from analysis of t he business in H1 2011 are found in the

excellent positioning of the brands and firm customer satisfaction with the collections offered,

both inside and outside Italy, as confirmed by the generally excellent sales performance of the

DOS network.

Particularly significant indicators of this positive trend, with respect to their relative weight in

overall Group activity, are represented by the sharp reversal of performance on the United States

market and bril l iant performance by the ROGER VIVIER brand, which testify to how brand

awareness is rapidly consolidating in the selected niche of target customers.

Considering the number of orders received for the upcoming Fall -Winter collection, and the

results obtained during the first six months of the year, positi ve forecasts can be made for the

entire year in terms of growth in revenue and margins from FY 2010.

Sant’Elpidio a Mare, August 5t h

, 2011

The Chairman of the Board of Directors

Diego Della Valle

Half-year Interim Report Supplementary notes

Group


06.30.2011

22 Supplementary notes

1. General notes

The half-year Financial Report, which includes the half-year condensed financial statements of

TOD’S Group at June 30th, 2011, has been prepared in accordance with Article 154 ter (2, 3 and

4) of the Consolidated Law on Financial Intermediation (“TUF”), introduced by Legislative Decree

195/2007 in implementation of Directive 2004/109/EC (the “Transparency” directive), and

complies with IAS 34 – Interim Financial Reporting, adopted according to the procedure

envisaged in Article 6 of EC Regulation no. 1606/2002. Consequently, this half-year condensed

financial statements not include all the information required for the annual report and must be

read together with the annual report prepared for the financial year at December 31st 20 10.

It includes the half-year condensed financial statements of TOD’S S.p.A. and its Italian and

foreign subsidiaries, together identified as TOD’S Group, drafted with the reference date of June

30th, 2011 (January 1st – June 30th).

The half-year condensed financial statements (profit and loss account, comprehensive profit and

loss account, Consolidated Statement of Financial position , Consolidated Statement of Cash

Flows, and Consolidated statement of changes in equity) were drafted in the long form and are

the same as those used for the consolidated financial statements at December 31st, 20 10.

As envisaged in IAS 34, the notes to the financial statements were drafted in summary form and

refer only to the components of the profit and loss account, balance sheet, and fund s flow

statement, whose composition or change in amount or nature was significant. Thus, they

il lustrate additional information for accurate comprehension of Group’s f inancial position at June

30t h

, 2011.

The Half Year Financial Report at June 30th, 2011 was approved by the Board of Directors of

TOD’S S.p.A. on August 5th, 2011, when its publication was authorised. It was audited (limited

review) by the independent auditor Deloitte & Touche S.p.A.

2. Accounting policies

The half-year condensed f inancial statements were prepared according International Accounting

Standards (“IFRS”) issued by International Accounting Standards Board (“IASB”) and approved by

the European Union. IFRS refers also to the International Accounting Standards (“IAS”) , in force

at reporting date, and all interpretative documents issued by International Financial Reporting

Interpretations Committee (“SIC”) .

The accounting standards used to prepare this half-year condensed financial statements are

consistent with those used to prepare the consolidated annual report at 31 December 20 10, to

which reference is made for full treatment.


06.30.2011


i. Accounting standards, amendments and interpretations applied since Januar y 1s t

2011,

relevant for the Group

IAS 24 Revised – Related parties disclosures: it has been clarif ied the definition of a related

party and simplif ied disclosures for government-related entities.

i i. Accounting standards, amendments and interpretations a pplied since January 1s t

2011, not

relevant for the Group

The following accounting standards, amendments, improvements and interpretations, are

applicable since 1s t

January 2011 and refer to situations or cases that were not applied in the

half-year condensed financial statements of TOD’S Group for the period ending at June 30t h

2011:

IAS 34 Improvement – Interim financial reporting: it has been clarif ied the disclosure

principle for significant transactions on interim financial reporting.

IAS 1 Improvement – Presentation of f inancial statements : an entity, for each component of

equity, may present the breakdown of other comprehensive income either in the statement

of changes in equity or in the no tes to the financial statements .

IFRS 1 Improvement – First time adoption: a f irst time adopter that changes its accounting

policies or its use of IFRS 1 exemptions after publishing a set of IAS 34 interim financial

information should explain those changes and include the effects of such changes in its

opening reconciliations within the first annual IFRS financial statements; the exemption to

use a ‘deemed cost’ arising from a revaluation , is extended to revaluations occurred during

the period covered by the f irst IFRS financial statements; entities subject to rate regulation

are permitted to use previous GAAP carrying amounts of property plant and equipment or

intangible assets as deemed cost .

IFRS 7 Improvement, Amendment – Financial instruments disclosures: it has been clarif ied

disclosures on the nature and extent of risks arising from financial instruments;

IFRIC 13 Improvement – Customer loyalty programmes: it has been clarif ied the meaning of

the term ‘fair value’ in the context of measuring award cre dits under customer loyalty

programmes.

IFRIC 14 Amendment – The limit on a defined benefit asset, minimum funding requirements

and their interaction: it has been clarif ied the conditions under which an asset could be

recognised in the financial statements.

IFRIC 19 – Extinguishing financial l iabilities with equity instruments: it has been clarif ied the

accounting treatment for renegotiating the term of a f inancial l iability fully o partially issuing

equity instruments.

Estimates and assumptions. Preparation of the financial f igures reported on the half-year

condensed financial statements entails making estimates and assumptions based on the


06.30.2011


management’s best valuation. Estimates and assumptions are reviewed regularly . If these

estimates and assumptions should change in future from the actual circumstances, they will

obviously be modified for the period in which those circumstances changed.

Specifically with regard to determination of eventual impairment losses affecting fixed assets,

complete tests are performed only when the annu al report is prepared, when all information as

might be necessary are available, unless there are indications that require immediate valuation

of eventual impairment losses or the occurrence of events that required re iteration of the

procedure. The analyses carried out at this reporting date have not revealed any impairment

indicators.

Presentation of financial statements drafted in foreign currency. The rates applied for

translation of the financial statements of subsidiaries using a functional currency other than the

currency used for consolidation, are il lustrated in the following table and compared with those

used in the previous period:

Jan. - June 2011 Jan. - June 2010

Exch. rate at Average Exch. rate at Average

Base June 30 t h exch. rate June 30 t h exch. rate

US Dollar 1 0.691 0.713 0.815 0.755

UK pound sterl ing 1 1.108 1.153 1.223 1.150

Swiss franc 1 0.828 0.788 0.753 0.697

Hong Kong dollar 100 8.891 9.167 10.466 9.714

Japanese yen 100 0.860 0.870 0.919 0.826

Hungarian forint 1,000 3.758 3.713 3.496 3.683

Singapore dollar 1 0.563 0.567 0.583 0.541

Korean WON 1,000 0.648 0.647 0.667 0.654

Chinese Renminbi 100 10.705 10.906 12.017 11.061

Macao Pataca 100 8.636 8.905 10.169 9.438

Albanian Lek 100 0.708 0.711 0.732 0.725

Indian Rupia 100 1.549 1.585 1.755 1.649

3. Seasonal or ciclical nature of interim transactions

TOD’S Group engages in a business that, while not manifesting significant seasonal or cyclical

changes in overall annual sales, is impacted by monthly differences in the flows of revenues and

costs generated by its industrial activity over the course of the year.

4. Alternative indicators of performances

In order to strip the effects of changes in exchange rates from the average values of the first six

months of 2011 from the results for the six months of 20 10, the typical economic indicators

(Revenues, EBITDA, EBIT) have been recalculated by applying the average exchange rates for the

six months of 2010, thereby rendering them fully comparable with those of the pre vious period.


06.30.2011


These criteria for measuring business performance must not be considered alternative to those

established by IFRSs.

Furthermore – as it has already been mentioned in the preceding paragraph, the Group’s cash

f low is uneven from quarter to qua rter, largely on account of its industrial activity. Consequently,

the analysis of interim results and financial statement indicators (EBITDA, EBIT, f inancial position

and working capital) cannot be considered fully representative, and it would thus be imp roper to

consider the indicators for the reference period to be in proportion to the results for the entire

financial year.

5. Scope of consolidation

On November 26th 2010, the Group acquired full ownership of Holpaf B.V., the real estate

company that owns the Tokyo building that, since 2005, pursuant to a lease agreement, houses

both TOD’S Japan KK’s administrative offices and the largest TOD’s f lagship store in Japan (for

further details see the financial statements for 2010). The entire absorption of this company

represents the only change in the reporting entity covered under the half-year condensed

financial statements as at June 30th 2010.

It is assumed that the Group controls those companies in which it does not own more than 50%

of the capital, and thus disposes of the same percentage of voting power at the Shareholders’

Meeting, where the Group has the power to exercise direct or indirect control of those

companies’ f inancial and operating policies in view of realizing benefits from their activities.

The following list i l lustrates the entire scope of consolidation at June 30th, 201 1:

Parent Company TOD’S S.p.a. S .E lp id io a Mare - I ta ly Share Capital (S.C.) - Euro 61,218,802

Direct subsidiaries TOD’S Deutsch. Gmbh TOD’S France Sas An.Del. USA Inc. TOD’S Internat. BV Dusseldorf - Germany Par is - F rance New York - U.S .A Amsterdam –Nether lands S .C . - Euro 153,387.56 S .C . - Euro 780,000 S .C . - Usd 3,700,000 S .C . - Euro 2,600,200 % held: 100% % held: 100% % held: 100% % held: 100%

Del.Com S.r. l . Holpaf B.V. S .E lp id io a Mare – I ta ly Amsterdam - Nether lands S .C . - Euro 31 ,200 S .C . - Euro 5,000,000 % held: 100% % held: 100%

Indirect subsidiaries

Cal .Del. USA Inc. Colo.Del . USA Inc. Deva Inc. F lor .Del. USA Inc. Bever ly H i l ls, Ca - U.S .A . Denver, Co - U.S.A . Wi lmington, DE – U.S.A . Ta l lahassee, F l - U.S.A. S .C . - Usd 10,000 S .C . - Usd 10,000 S .C . - Usd 500,000 S .C . - Usd 10,000 % held: 100% % held: 100% % held: 100% % held: 100%


06.30.2011


Indirect subsidiaries (continues)

Hono.Del. Inc . I l .Del. USA Inc. Neva.Del. Inc. Or .Del. USA Inc. Honolulu, H i - U.S.A. Spr ingf ie ld, I l - U.S .A . Carson C ity, Nv - U.S .A. Sacramento, Ca - U.S .A. S .C . - Usd 10,000 S .C . - Usd 10,000 S .C . - Usd 10,000 S .C . - Usd 10,000 % held: 100% % held: 100% % held: 100% % held: 100%

TOD’S Tex Del USA Inc. Gen.Del SA Sandel SA TOD’S Belg ique S.p.r . l. Dal las, Tx - U.S .A Ginevra - Switzer land San Marino Bruxel les - Belg ium S .C . - Usd 10,000 S .C . - Chf 200,000 S .C . - Euro 258,000 S .C . - Euro 300,000 % held: 100% % held: 100% % held: 100% % held: 100%

TOD’S Espana SL TOD’S Hong Kong Ltd TOD’S Japan KK TOD’S Saint Barth Sas Madrid – Spain Hong Kong Tokio - Japan Sa int Barthélemy S .C . - Euro 468,539.77 S .C . - Usd 16,550,000 S .C . - Jpy 100,000,000 S .C . - Euro 500,000 % held: 100% % held: 100% % held: 100% % held: 100%

TOD’S Singapore Pte Ltd Un.Del Kft TOD’S UK Ltd Webcover Ltd S ingapore Tata - Hungary London – Great Br i ta in London – Great Br i ta in S .C . - Sgd 300 ,000 S .C . - Huf 42,900,000 S .C . - Gbp 350 ,000.00 S .C . - Gbp 1 ,000.00 % held: 100% % held: 100% % held: 100% % held: 50%

TOD’S Luxembourg SA TOD’S Korea Inc. TOD’S Macao ltd TOD’S (Shanghai) Tr. Co Ltd Luxembourg Seoul - Korea Macao Shanghai – China S .C . - Euro 31 ,000.00 S .C . - Won 1,600,000,000 S .C . – MOP 20,000,000 S .C . – USD 6 ,000,000 % held: 50% % held: 100% % held: 100% % held: 100% TOD’S India Retail Pte Ltd Re .Se.Del. S .r . l . De l.Pav. S. r . l . F i lang ier i 29 S. r . l . Mumbai - India S .E lp id io a Mare- I ta ly S .E lp id io a Mare- I ta ly S .E lp id io a Mare- I ta ly S .C . – INR 193,900,000 S .C . - Euro 25 ,000.00 S .C . - Euro 50 ,000 S .C . - Euro 100,000 held: 51% held : 100% held: 50% held: 50% Alban.Del Sh.p.k. T irana - A lbania S .C . - Euro 720,000 held: 100% 6. Segment reporting

The search for higher levels of operating efficiency has revealed the general importance of a

significant portion of service activities (f irst and foremost produc tion), both at the central and

peripheral levels, as the basis for maximi sing profitability. This renders the possibility of

aggressive segmentation of the business uneconomical under current circumstances.

At the operating level, Group’s organization is based on an articulated matrix structure according

to the different functions/activities in the value chain, alternatively according to brand, product,

channel and geographical area. The overall organization envisages a unified strategic vision of

the business.

This type of organization is reflected in the ways in which management monitors and strategically

focuses the Group’s activities.

The economic disclosure set out in the Interim Report is completed as follows, including a break -

down of consolidated revenues by BRAND, CHANNEL, PRODUCT TYPE and REGION, and INCOME

STATEMENT for the business:


06.30.2011


2011 Capital expenditures

By investment allocation (Euro mn) By region (Euro mn)

8,6

4,4

24,7

-

9,2

3,8 3,1

Key money DOS Prod. Other

H1 2009

H1 200829,6

3,0 1,4

3,7

7,5

2,91,5

4,2

Italy Europe North Am. RoW

H1 2009

H1 2008

8.6

4.4

24.7

-

9.2

3.8 3.1

Key money DOS Prod. Other

H1 2011

H1 201029.6

3.01.4

3.7

-

7.5

2.91.5

4.2

Italy Europe North Am. RoW

H1 2011

H1 2010

Distribution network

TOD’S GROUP - Distr ibution network

06.30.11 06.30.10

Italy DOS 41 37

FRANCHISED STORES 5 6

Europe DOS 33 31


USA DOS 14 14

FRANCHISED STORES - -

RoW DOS 73 69


Total DOS 161 151

Total FRANCHISED STORES 70 71

TOD'S HOGAN

107

58

101

58

DOS Franchised stores

H1 2011 H1 2010

13

10

12

11


H1 2011 H1 2010

107

58

101

58

DOS Franchised storesH1 2011 H1 2010

13

10

1211



06.30.2011


FAYROGER

VIVIER

3

0

3

0


H1 2011 H1 2010

7

1

6

1


H1 2011 H1 2010

3

0

3

0


7

1

6

1


7. Earnings per share

The calculation of base and diluted earnings per share is based on the followings:

i . R e f e r e n c e p r o f i t

(Euro 000’s) From continuing and discontinued operations HY 2011 H1 2010 Profit used to determine basic earning s per share 65,409 51,618

Dilution effects 0 0

Profit used to determine diluted earnings per share 65,409 51,618

(Euro 000’s) From continuing and discontinued operations H1 2011 H1 2010 Profit attributable to equity holders of the Company 65,409 51,618

Income (Loss) from discontinued operations

Profit used to determine basic earning per sh are 65,409 51,618

Dilution effects

Profit used to determine dilu ted earning per share 65,409 51,618

In both periods, f irst half 2011 and 2010, there were no dilutions of net consolidated earnings,

partly as a result of activities that were disc ontinued during the periods in question.

i i . R e f e r e n c e n u m b e r o f s h a r e s H1 2011 H1 2010 Weighted average number of shares to determine basic earning s per share 30.609.401 30.609.401

Share options - -

Weighted average number of shares to determine dilu ted earning per share 30.609.401 30.609.401


06.30.2011


8. Dividends

Pursuant to a resolution by the Shareholders’ Meeting of April 2 0t h

2011, the parent company

TOD’S S.p.A . paid its shareholders dividends in May for the net profit realised in FY 20 10. The

aggregate value of dividends paid totals 61,218,802.00 euros, at the rate of 2 euros for each of

the 30,609,401 shares comprising share capital at the ex dividend date (May 23rd

2011).

Moreover, other Group companies paid 1,790 thousand euros in dividends to their own minority

shareholders.

9. Intangible and tangible fixed assets

Intangible assets of TOD’S S.p.A. include the net book value related to the agreement signed with

the Ministry of Cultural Affairs and the Supervisor for Central Rome ’s Archaeological Area for

f inancing the restoration work on the Coliseum, amounting to 18.5 mill ion euros net of

amortization for 1.5 mill ion euros . The asset value has been determined by discounting expected

cash flows for restoration activities based on the expected work plan. The liability for f inancing

restoration works amounts to 20.2 mill ion euros, net of VAT, of which 16.7 mill ion euros for long-

term exposures.

10. Hedging of financial risks (IFRS 7)

Consistently with the provisions of the Code of Self -discipline of Listed Companies, TOD’S Group

has set up a system for monitoring the financial risks to which it is exposed. These can be

identified as follows:

i. Credit risk. This represents the exposure of TOD’S Group to potential losses stemming from

default on the obligations assumed by commercial counterparties.

i i. Liquidity risk. This represents the risk stemming from the unavailability of f inancial resources

as necessary to meet the short -term commitments assumed by the Group and its own

financial requirements.

i i i. Market risk. This type of risk includes those risks that are directly or indirectly tied with the

fluctuation of physical and financial market prices to which a company is exposed:

– exchange rate risk;

– interest rate risk;

– commodity risk, which is tied to the volatil ity of prices for the raw materials used in the

production process.

In the ambit of the policy adopted for management of the aforementioned risks, the Group

constantly monitors the financial risks connected with its operations, so that it can a ssess their

potential negative effects in advance and take the necessary actions to mitigate them.


06.30.2011


Particularly in regard to exchange rate risk, the Group has adopted a risk management policy that

pursues the objective of guarant eeing that the countervalue in euro of the receipts from

wholesale sales in foreign currency of each collection (Spring -Summer and Fall -Winter) is equal

or better on average to what would be obtained by applying the set target exchange rates. The

foregoing purposes are pursued by executing forward contracts for each individual currency in

which the Group operates (principally USD, CHF, GBP, HKD, SGD), in order to hedge a specific

percentage of revenue volumes (and costs) expected in the individual currencies other than the

functional currency, without any speculative or trading purpose, consistently with the strategic

policies adopted for prudent management of cash flows. This might involve foregoing

opportunities, but also avoids incurring speculative risks. The fair value of these derivative

financial instruments is classif iable as being 2n d

level, according to the hierarchy of fair value

requested by IFRS 7.

11. Transactions with related parties

In implementation of the Related Party Transactions Regulation adopted by CONSOB with

Resolution no. 17221 of March 12th 2010, as amended by Resolution no. 17389 of June 23 rd

2010, during 2010 TOD’S Group modified its existing procedures governing the transparency and

substantive fairness of related party transactions, to bring them in line with the principles set

out in the cited CONSOB Regulation. (The complete text of the “Related PartyTransactions

Procedure of TOD’S S.p.A.” can be found at www.todsgroup.com). The new related parties

procedure was approved – after receiving the favourable opinion of independent directors – by

the Board of Directors of the parent company on November 11 th 2010 and came into force on

January 1st 2011.

Transactions concluded during the period.

In continuation of contractual relationships already existing in 2010, TOD’S Group continued to

maintain a series of contractual relationship with related parties (directors/controlling or

significant shareholders) in the first half of 2011. All transactions – which are connected with the

normal operations of TOD’S Group companies – were executed solely on behalf of the Group by

applying contractual conditions consistent with those tha t can theoretically be obtained on an

arm’s length basis and compliant with corporate governan ce provisions which ensure regularity,

transparency and fairness of such transactions. The main object of the transactions was the sale

of products, lease of sales spaces, show rooms and offices, use of the ROGER VIVIER brand

license and the provision of advertising services .

On November 4t h

2009, the IASB issued a revised version of IAS 24 - Related Party Disclosures ,

applicable from January 1s t

2011, that clarif ies the definition of a related party. Application of

this amendment did not have any significant effects on the measurement of items in Group’s

http://www.todsgroup.com/


06.30.2011


f inancial statements and had only l imited effects on the disclosures for related par ty

transactions.

i. Commercial transactions with related parties – Revenues Euro 000’s Sales of Rendering Sales Operating Other products of services of assets Royalties lease operations

30 June 2011

Parent Company ( * ) 1,182 1,296 5,093 67

Directors 1 32

Exec. with strat. respons.

Other related parties ( * * ) 1,475

Total 2,658 1,296 - 5,093 99 -

30 June 2010

Parent Company ( * ) 945 1,850 5,343 33

Directors 1 32


Other related parties ( * * ) 1,090

Totale 2,036 1,850 - 5,343 65 -

i i. Commercial transactions with related parties – Costs Euro 000’s Purchase of Rendering Sales Operating Other

products of services of assets Royalties lease operations

30 June 2011

Parent Company ( * ) 978 1,061 2,132 4

Directors 1,741


Other related parties ( * * ) 2,991 117 282

Total 978 4,732 - 1,178 2,414 4

30 June 2010

Parent Company ( * ) 925 895 3,663

Directors 1,710


Other related parties ( * * ) 2,323 83 280

Totale 925 4,033 - 978 3,943


06.30.2011


i i i. Commercial transactions with related parties – Receivables and payables (Euro000’s) 06.30.11 06.30.10

Receivables Payables Receivables Payables

Parent Company ( * ) 4,496 1,721 10,032 1,314

Directors 7 1,230 5 1,119


Other related parties ( * * ) 412 2,750 268 2,116

Total 4,915 5,701 10,305 4,549

(*) Companies directly or indirectly controlled by Chairman of the Board of Directors Diego Della Valle.

(**) Companies where Mr. Diego Della Valle is executive with strategic responsibi l it ies (and subsidiaries

controlled by these companies).

iv. Commercial transactions with unconsolidated subsidiaries

Receivables and payables 06.30.11 06.30.10

(Euro000’s) Receivables Payables Receivables Payables Special Purpose Entities ( * * * ) 406

(***) F inancial balances referred to the period prior to acquisition of the activities.

Given the insignificance of these amounts, they ha ve not been separately l isted on the face of

the financial statements. Transactions between Group companies included in the s cope of

consolidation have been eliminated from the half-year condensed financial statements .

Consequently, they have not been highlighted in these notes.

Compensation of Directors, Statutory Auditors and General Managers

Compensation of Directors, Statutory Auditors and Executives with strategi c responsibilities of

TOD’s S.p.A. for the first half of 2011 (including compensation for the activities performed at

subsidiaries) are not significantly changed in respect to the period ended at 31s t

December 2010.

No severance indemnity is provided for Directors and Executives with Strategic Responsibilities .

Half-year Interim Report Financial Statements

Group


06.30.2011

3 4 Financial Statements

Consolidated Profit & Loss

Euro 000 ’s H1 2011 H1 2010 Year 2010

Revenues

Sales revenues 439,458 377,462 787,539

Other revenues and income 8,614 9,610 18,819

Total revenues and income 448,072 387,072 806,358

Operating costs

Change in inventories (work in progr. & finished goods) 16,640 1,888 952

Cost of raw materials, supplies, and material for consumpt ion (103,222) (86,837) (178,829)

Cost of services (135,571) (115,808) (238,514)

Cost of use of third parties assets (30,434) (28,151) (58,714)

Cost of labour (63,125) (57,862) (117,751)

Other operating charges (16,744) (9,609) (20,443)

Total operating cost (332,456) (296,379) (613,299) EBITDA 115,616 90,693 193,059

Amortization, depreciation and write -downs

Amortization of intangible assets (5,341) (3,695) (7,599)

Depreciation of tangible assets (13,102) (12,093) (24,476)

Other adjustments - - -

Total amortization, depreciation and write -downs (18,443) (15,788) (32,075)

Provision (757) (637) (1,040)

EBIT 96,416 74,268 159,944

Financial income and charges

F inancial income 8,391 10,853 19,371

Financial charges (7,942) (8,152) (15,963)

Total f inancial income (charges) 449 2,701 3,408

Income (losses) from equity investments - - -

Profit before taxes 96,865 76,969 163,352

Income taxes (30,801) (24,548) (52,566)

Profit/(Loss) for the period 66,064 52,421 110,786

Non-controll ing interest (655) (803) (1,710)

Profit /(Loss) of the group 65,409 51,618 109,076

EPS (Euro) 2.14 1.69 3.56

EPS diluted (Euro) 2.14 1.69 3.56


06.30.2011


Consolidated comprehensive income

Euro 000 ’s

H1 2011 H1 2010 Profit ( loss) for the period (A) 66,064 52,421

Other Gains/(Losses)

Gains/(Losses) from derivative financial

instruments (cash flow hedge) 1,156 (2,003)

Gains/(Losses) from foreign subsidiaries F/S translation (3,844) 2,782

Total Other Gains/(Losses) net of tax (B) (2,688) 779

Total Comprehensive Income (A) + (B) 63,376 53,200

Attributable to Shareholders of Parent Company 62,757 52,168

Attributable to non-controll ing interests 619 1,032


06.30.2011


Consolidated Statements of Financial Position

Euro 000 ’s

06.30.11 12.31.10 06.30.10 Non current-assets

Intangible f ixed assets

Asset with indefinite useful l ife 149,024 149,024 149,024

Key money 25,605 27,679 29,765

Others 29,688 12,380 11,151

Total intangible f ixed assets 204,317 189,083 189,940

Tangible f ixed assets

Building and lands 100,660 105,721 40,099

Plant and machinery 4,311 3,962 4,757

Equipment 12,902 12,573 12,380

Leasehold improvements 30,351 30,595 34,380

Others 22,870 21,252 20,065

Total tangible f ixed assets 171,094 174,103 111,681

Other assets

Real estate investments 44 46 47

Equity investments 20 20 20

Deferred tax assets 36,647 32,027 28,772

Others 8,393 7,789 9,004

Total other assets 45,104 39,882 37,843

Total non-current assets 420,515 403,068 339,464

Current-assets

Inventories 227,689 203,136 205,938

Trade receivables 126,468 119,560 116,907

Tax receivables 7,246 3,856 3,026

Derivative financial instruments 3,506 2,084 898

Others 12,565 12,263 9,916

Cash and cash equivalents 157,017 171,729 232,119

Total current assets 534,491 512,628 568,804

Assets held for sale - - -

Total assets 955,006 915,696 908,268


06.30.2011


Euro 000’s

(continue) 06.30.11 12.31.10 06.30.10 Equity

Share capital 61,219 61,219 61,219

Capital reserves 214,055 214,055 214,055

Treasury stock - - -

Hedging and translation reserves (6,915) (4,263) (4,783)

Retained earnings 277,962 231,451 338,745

Accumulated earnings/losses - - -

Profit attributable to the Group 65,409 109,076 51,618

Total Equity attr ibutable to the Group 611,730 611,538 660,854

Non controlling interests

Share capital and reserves 5,077 5,193 5,345

Profit attributable to non controll ing interests 655 1,710 803

Total Equity attr ibutable to non controlling interests 5,732 6,903 6,148

Total Equity 617,462 618,441 667,002

Non current l iabilit ies

Provisions for risks 1,515 1,369 1,073

Deferred tax l iabil it ies 28,749 27,722 24,187

Retirement benefit obligation 11,233 11,419 11,450

Others 20,280 - -

Bank borrowings 37,758 42,805 6,032

Total non-current l iabilit ies 99,535 83,315 42,742

Current l iabilit ies

Trade payables 144,347 130,008 129,463

Tax payables 18,105 20,064 13,523

Derivative financial instruments 1,769 2,333 5,101

Others 43,277 29,106 24,649

Banks 30,511 32,429 25,788

Total current l iabilit ies 238,009 213,940 198,524

Liabil it ies held for sale - - -

Total Equity and liabilit ies 955,006 915,696 908,268


06.30.2011


Consolidated Statements of Cash Flows

Euro 000’s Period Period Jan. – Jun. 11 Jan. – Jun. 10 Profit ( loss) attr ibutable to the Group 65,409 51,618

Non cash adjustments

Amortization, depreciation, revaluation and write -downs 21,370 13,397

Change in employee severance indemnity reserve 499 558

Change in deferred tax assets/liabil it ies (3,593) (4,482)

Other changes 7 610

Cash Flow (a) 83,692 61,701

Changes in current assets and liabilit ies:

Inventories (27,317) (7,658)

Trade receivables (7,071) (8,747)

Tax receivables (3,390) (811)

Other current assets (1,724) (1,214)

Trade Payables 14,339 25,542

Tax payables (1,959) 9,353

Other current l iabil it ies 13,607 11,387

Change in operating working capital (b) (13,515) 27,852

Cash flow from operating activities (c)=(a)+(b) 70,177 89,553

Net investments in tangible and intangible assets (36,819) (15,757)

( Increase) reduction of equity investments - -

Other changes in f ixed assets 6,151 -

Reduction ( increase) of other non current assets (602) (1,423)

Cash Flow from (used in) investment activities (d) (31,270) (17,180)

Dividends paid (61,219) (45,914)

Changes in long term loans 14,687 (1,217)

Capital increase - -

Other changes in shareholders equity (3,998) (3,785)

Changes in non-controll ing interests (1,171) 866

Cash Flow from (used in) f inancing activit ies (e) (51,701) (50,050)

Cash Flow from continuing operations (f)=(c)+(d)+(e) (12,794) 22,323

Cash flow from assets held for sale (g) - -

Net Cash Flow (h)=(f)+(g) (12,794) 22,323

Net f inancial position at the beginning of the period 139,300 184,008

Net f inancial position at the end of the period 126,506 206,331

Change in current net f inancial position (12,794) 22,323


06.30.2011


Statement of changes in equity

January - June 2011 Euro 000 ’s Hedging and Total Share Capital translation Retained Group Minority Capital reserves reserves earnings interests interests Total Balance as of 01.01.11 61,219 214,055 (4,263) 340,527 611,538 6,903 618,441

Profit/(Loss) for the period

Profit and Loss account 65,409 65,409 655 66,064

Directly in Equity (2,652) (2,652) (36) (2,688)

Total Comprehensive Income - - (2,652) 65,409 62,757 619 63,376

Dividends (61,219) (61,219) (1,790) (63,009)

Capital Increase

Share based payments

Other (1,346) (1,346) (1,346)

Balance as of 06.30.11 61,219 214,055 (6,915) 343,371 611,730 5,732 617,462

January - June 2010 Euro 000’s Hedging and Total Share Capital translation Retained Group Minority Capital reserves reserves earnings interests interests Total

Balance as of 01.01.10 61,219 214,055 (5,333) 384,710 654,651 5,282 6 5 9 , 9 3 3

Profit/( loss) for the period

Profit & Loss account 51,618 51,618 803 52,421

Directly in equity 550 550 229 779

Total Comprehensive Income - - 550 51,618 52,168 1,032 53,200

Dividends (45,914) (45,914) (725) (46,639)

Capital increase

Share based payments

Other ( 5 1 ) ( 5 1 ) 559 508

Balance as of 06.30.10 61,219 214,055 (4,783) 390,363 6 6 0 , 8 5 4 6 , 1 4 8 6 6 7 , 0 0 2


06.30.2011

4 0 Attestation

Attestation of the Half-Year condensed financial statements of TOD’S Group pursuant

article 154 bis of D.LGS. 58/98 and of article 81-ter of Consob Regulation n. 11971 of

May 14t h

1999 and further modifications and integrations.

1. The undersigned Stefano Sincini, Chief Executive Officer of TOD’S S.p.A., and Rodolfo Ubaldi,

manager responsible for the drawing up of the financial reports of TO D’S S.p.A., certify, in

accordance with the provisions of Article 154 -bis, subsections 3 and 4, of Legislative Decree no.

58 of February 24t h

, 1998:

• the adequacy in terms of the company’s characteristics and

• effective application

of administrative and accounting procedures for preparation of the 20 11 Half Year condensed

financial statements during the period January 1s t

, 2011 to June 30t h

, 2011.

2. They also certify that Half-Year condensed financial statements :

a) have been prepared in accordance with International Financial Reporting

Standards, as endorsed by the European Union through Regulation (EC) 1606/2002 of the

European Parliament and Counsel, dated 19 July 2002 ;

b ) correspond with the account book and ledger entries;

c) give a true and fair view of the assets, l iabilities, income and financial position of

the issuer and entities included in the scope of consolidation.

3. Interim report provides a reliable analysis of the significant events for the first six months of

the current fiscal year and the impact of such events on the Half year condensed financial

statements as well as a description of the main risks and uncertainties for the second half of the

year in addition to a reliable analysis of the information on the significant related party

transactions

Sant’Elpidio a Mare, August 5t h

, 2011

Manager responsible for drawing Chief Executive Officer up of the financial report

Stefano Sincini Rodolfo Ubaldi

Date post:	15-Feb-2019
Category:	Documents
Upload:	dangbao
View:	215 times
Download:	0 times

2011 IAS/IFRS Half Year Report - Tod's Group Spa · Holpaf B.V. Real estate company Re.Se.Del....

Documents