• The strong third quarter revenues performance (+13.1%) benefited, as expected, from the rescheduling of shipments decided in the previous quarter
• Benetton Group nine month revenues substantially in line with the excellent results of the corresponding period of 2008: -2.8% (-2.1% currency neutral)
• Margins maintained by careful cost control, offsetting the negative currency impact
• Investments of over €100 million focussed on commercial growth and production activities
• Significant increase in cash flows: over €200 million reduction in cash flow absorption
• Net debt in line with the previous year, with improvements expected by the year end.

Benetton Group Board of Directors approved the company’s consolidated results for the first nine months of 2009 and reviewed progress made in the achievement of the objectives set out in its reorganization plan.

Group net revenues for the first nine months of 2009 were €1,491 million, marginally down (-2.8%) on the same period in 2008 (-2.1 % currency neutral). As already announced, the rescheduling of deliveries decided at the end of the first half year in order to match seasonality and provide improved service to clients, was fully recovered during the third quarter of the year.

Revenue performance was substantially maintained despite the deterioration in foreign currencies against the euro as well as product mix. In the period, on the other hand, the opening of more directly operated stores had a positive effect.

Textile segment sales increased by €10 million to €78 million, while Apparel sales were €1,413 million, €53 million lower than in the first nine months of 2008. Apparel sales included €324 million (+ €12 million) attributable to direct sales, while €1,089 million were generated in the wholesale channel (-€65 million).

In established markets, satisfactory performance was achieved by: Italy, the main Group market, France, Greece and Nordic countries; with a slowdown in the Iberian peninsula and continental Europe.

In emerging markets, which grew overall by 13%, currency neutral, particularly positive performance was achieved in India and China. In India, there was in fact a further acceleration in growth due to continued improvement in comparable performance and to growth in department stores in prime locations. In China, comparable performance was positive in the third quarter and for the year to date, due to the completion of the initial phase of refocusing and closure of sales outlets, accompanied by the first new openings in locations of strategic interest.

In Mexico, market development has been focussed on both the direct network and department stores, where further acceleration is planned with the opening of 50 new corners for the winter season.

In Turkey, the market is contracting due to weakness of consumption and of the currency. Benetton’s well-established presence benefits from high brand visibility; the latter was further increased by the recent opening of an important flagship store in the centre of Istanbul.

Finally, there was a downturn in volumes in the Russian market due to the strong impact of the economic crisis; however, the Benetton Group remains committed to seizing development opportunities in this important market.

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