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T O D ’ S S PA

INVENTORY ■ The significant increase in allowance for inventory write-downs in 2016 includes a one-off write-off of

part of the non-current season stock (€24.2M) post the Company’s acquisition of the Roger Vivier brand in 2015*.

■ Adjusting for the above one-off writedown, the normalised allowance for inventory write-down in 2016 is €28.7M, which is still 29% higher than 2015 (Average writedown 2006-2016 = -5.8%, Average writedown during Facchinetti period (2013-2016) = -9.3%).

■ These larger writedowns are primarily due to the change/correction of strategic direction with regard to Tod’s fashion component of the collection/s. We expect these writedowns to diminish going forward as Tod’s reverts back to its more historical “DNA”.

INVENTORY SINCE 2006 €400M €350M €300M

Inventory

€250M €200M €150M €100M €50M €0M -€50M -€100M 2006 2007 2008 2009 2010 Raw materials

Semi- finished products

2011 2012 2013 2014 2015 2016 Finished products

Advances

2017

Writedown

INVENTORY SINCE 2006 100%

As a % of Total Inventory

80%

60%

40%

20%

0%

-20% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Raw materials

Semi- finished products

Finished products

Advances

2017

Writedown

* €24.2M was 5.8% of the €415M acquisition price Source: Tod’s SpA Annual Reports

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Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018