Ladies and gentlemen, good afternoon. Good afternoon, everybody, those who are present here and those who are connected via the website. The new business plan. Let's start immediately with the welcome speech of our President and Founder, Mr. Mario Moretti Polegato, the inventor of Geox. Please, Mr. Polegato. First of all, good afternoon, ladies and gentlemen. On my way to Milan today, and, as you know, we live in Treviso, I was wondering the following: What is the point of planning for the future while the world is still struggling with the pandemic? Looking back to what our whole team, led by our CEO, Livio Libralesso, have accomplished over this past period, the answer I came up with was definitely yes. This answer stems from the fact that we have done a great job in modernizing Geox, not only for today's market, but for the market of the future. There is much talk about what will be the market of the future, but the actual point is to understand and implement what needs to be done. We believe that we have done this, and we are here today to present it to you all. Firstly, Livio and I decided we should start with human capital, which represents our future. Today's market requires new professional profiles, different and often more complex than those we have today, and that have led us to where we are now. We asked ourselves, "What can we do to infuse passion in the managers who have recently joined the company?" The answer is vocational training, explaining the Geox competitive edge, analyzing the brand's positioning on the market, understanding the needs of modern consumers and what they really want, then understanding market perceptions and where the market is going. This is how we have been able to reorganize the frontline managers, namely a group of competent individuals who firmly believe in Geox, capable of telling our story to the world. With them, we have built a platform of key content for the new Geox. We set out by rationalizing retail. We closed unprofitable stores placed in less than prime locations in order to invest in the premium and most representative stores and open new ones. The pandemic has clearly highlighted what needs to be innovated in terms of technology and digital solutions, so we have been determined and assertive in creating a pool of extremely competent persons in the e-commerce division, obtaining amazing results in all the countries in which we operate. This has compensated for sales lost following the closing of non-performing stores. Most importantly, it has opened up new markets where a direct dialogue with consumers is possible. This has also been important in relaunching sales in existing stores by creating a digital platform which provides clients with a more comprehensive service. Our marketing, which has always been an essential tool, has evolved. Many of you will recall this breathing shoe, the smoking shoe. We realized we needed to change our communication based on technology. Indeed, science and technology have their own jargon, which may sound as harsh. We have created a new way to talk to consumers, a new dialogue to communicate our technology using a more simple and engaging language, highlighting the benefits rather than explaining its functioning. This is the message we have sent out and will be communicating extensively in the near future, both through traditional channels, such as the press and television, as well as through social media, the protagonists of the market revolution. We have also renewed and strengthened the relations with our multi-brand clients, with the aim of increasing the presence of the Geox brand in their distribution networks. We all know how important these outlets are for us. Another very important aspect which I would like to bring to your attention is our rigorous cost control policy, especially in those areas no longer considered significant for the company. In conclusion, in light of what I've just said, we are cautiously optimistic and aware that we have worked out a clear strategy and put together a team that will reaffirm the points of excellence which Geox has always stood for. A unique product, thanks to technology, an Italian style brand, a useful and empathetic communication, a clear brand positioning in the medium segment of the footwear and apparel industries. Finally, a sustainable Geox world to confirm the brand and our product. I would like to thank Chemi Peres, the son of Shimon Peres, the founder of the foundation, and he was appointed President of Geox Ethics Committee. He received this appointment today. Thank you very much. Thank you, Mr. Polegato. Let's have a quick glance at the agenda. It is divided into two parts. The first one, there is the transformation journey, our investment in people and our commitment to sustainability, and then the strategy. Marketing strategy and merchandising and product strategy, both footwear and ready-to-wear. A coffee break. In the second part, the execution by channel with strong skills, vertical in each single channel, digital, retail, wholesale, and our omni-channel approach to deliver strategy of growth and profitability by market. Few slides on the supply chain, and finally, the financial. We will open the Q&A, and we will be ready to take your questions and also the questions of people connected via streaming. At the end, a quick final wrap-up. As a matter of fact, this is a five-year business plan. I have been engaged as the CEO of the company in January 2020, today, December 2021, so the first chapter of the business plan has been already delivered. I mean, the focus on the core project. Today, we are here to speak about the second chapter, a chapter of growth. We call it bigger and better. At the end, our aim is that Geox won't be the same company. Why the need for a change? Because you remember very well, January 2020, full year 2019, EUR 800 million turnover, just break even at profitability results. Really a brutally simple question, why Geox was delivering poor profitability results? I have been serving the company since 2001 as CFO and then as corporate managing director, so I didn't need time to invest in the diagnostic. The situation was really clear in my view. This chart is important. It shows that in 2011, the company, the group, decided to move retail really in a strong way. We increased the number of DOS from 280 till 450 and then 480, more than a 60% increase in our retail footprint. At the same time, if I look to the green line, we lost our focus on wholesale with really the weight of wholesale decreasing sharply from 77% to 45%. The combination of lost focus on wholesale and higher retail drove to really a huge decrease in the profitability. The red line, EBITDA, you see that from 26%, it drop until 11% and then 4%. In order to protect the profitability of the company, the company, the group decided to reduce the marketing spending. I did also really a survey on our peers in the industry. I have been working in this industry since 30 years today. At the top luxury sectors, all the players are 80% on average retail, 20% wholesale, with 70% of gross margin and 21% at EBITDA level. At the bottom, the fast fashion players, they are 100% retail because the pricing power is low, prices are low, total margin is low and consequently there is not enough margin to have a two layers distribution model. I mean, wholesale and retail. In any case, gross margin 55% and EBITDA 15%. In the middle, the premium sector, we strongly believe that Geox deserves to belong to this sector. However, on average, this sector has a 55% gross margin and a 16% EBITDA. Going to Geox, you see 2019, 50% gross margin, so 500 basis points lower than the peers. This means a brand issue. In addition, our overexposure to brick-and-mortar retail drove two additional sales costs, and consequently, also Geox was delivering a lower operating leverage, and consequently additional 500 basis points of lower profitability. This explain the fact that our EBITDA margin was at 4%, 10 percentage points on sales lower than our peers. The brutally simple diagnosis in 15 days, low gross margin, overexposure to brick-and-mortar retail, lost focus on wholesale and a reduced marketing spending. It was important to clearly state these issues in order to deliver and to align all the company on the beautifully simple answer that are regaining gross margin, immediately optimize brick-and-mortar retail at least at 20% of the footprint, boost on digital and omni-channel, regain qualified wholesale in core markets and increase marketing spending. This is the recipe that we are implementing. We started implementing in 2020 in order to recover position in terms of profitability. It was clear that it was necessary to make a change to get really a strong transformation journey started, to set the direction clearly and then to onboard people in this project. Because without onboarding people, it is impossible to have a successful change, a successful transformation journey. We fixed the building blocks of the future business plan on four real big pillars. The first one, a strong cost reset in order to free up resources, because immediately on the other side, it was clear that we were obliged to invest, first of all, in the digital transformation of the business model, but especially in the revamping of the brand. This means more marketing spending. The other pillars is a merchandising boost. What we define merchandising boost is really to pay attention in the architecture of the collection in order to produce collection with a lower range of SKUs, but really focused on our target customers from one side and really that fit well with our distribution, where the final customers meet Geox. This approach, together with the brand revamping, should immediately drive and deliver a strong reduction in markdown. Transformation, digital transformation. For sure, retail will be different, wholesale will be different, and the omni-channel approach is the key. We really invested a lot in the transformation of the business model. The purpose of these four pillars are to regain gross margin and to deliver operational leverage. Suddenly, March, the world has changed. As a matter of fact, the outbreak of the pandemic for us has been a tremendous call for speed to protect the people, to protect the company. Consequently, we've been obliged to really hardening the rationalization process. We did it in, let's say, nine, 12 months, the program of 24 months. Today, this is important, I can say the first part, focus on the core, the rationalization, mission accomplished. We've been able to close with no material impact, 20% of the network. We have rationalized the geographies, Canada, U.S., Japan, Germany and the U.K. Finally, in November, we have also been able to sell the premises in Serbia and to receive the proceeds. I'm underlining this because our net financial position should be a little bit better than what I disclosed in November, because we have been able also to sell the premises. Focus on the core, in any case, laid also really important foundation, not only the optimized costs, but also an important organization transformation and enhanced digital capabilities. Also we are seeing the first signs of an ignition in the brand momentum and the strengthening of the product portfolio. In fact, some of the first results achieved are a reduced breakeven point in 2021. New wholesale partner, we are expanding the perimeter more than 600 doors gained in 2021, thanks to Spherica project. In our network, we have been able to deliver really a material reduction in markdown, 800 basis points compared to 2020 and 400 basis points compared to 2019. I'm really proud to see that the two projects that we managed according to the new way to do business we defined with Boston Consulting, these as trading line-up. It means to have all the part of the business ready when you launch a project, so advertising, editorials, windows, other TV campaign, product really well distributed. We have been able to create Spherica, 85% sell through in 20 weeks, 100% full price, and Nintendo really two big success of this new strategy. I'm talking also about the organization. Focus on the core had three priorities. The first one, define a line organization set for growth and for profitability. We invested a lot in recruitment and in the leadership team, and also we invested a lot in our people in order to onboard them in the transformation journey to have 120% of their commitment. Today, the group has really a strong headquarters with global leadership capabilities to drive the company and also to be in touch with, directly with countries. Channels are defining the business model, and then the omni-channel committee that we have on a weekly basis in the headquarters tries to analyze and to support each single country in order to request to the country to deliver top-line growth and increase the profitability at EBIT level. Today, we have fewer organization layers. As a matter of fact, we canceled the regions. Headquarter, countries directly. In my opinion, the global leading capabilities are fine. The team is ready. Most of them joined the company during these two years, except Monica, that is really one of our assets. Francesco Garello, the Chief People Officer, Peter Salvagni, that joined the company 5-7 years ago, and Giulio, that started the digital transformation in 2018. They are the presenters, they are part of the global leadership team, so I'm not investing additional time on this. I want to invite Francesco Garello, and let me express a special thanks to Francesco Garello. He's really a senior manager. He spent most of his career in international companies. He worked for Ferrari, Maserati, FIAT, Generali, always delivering and driving cultural change and transformation to set the company for achieving important results. Under his tenure in Ferrari has been named by Financial Times the best place in Europe to work. We dream maybe not the best place to work in Europe, but for sure our people are really important. Please, Francesco, join me. Thank you, Livio, for this amazing presentation. Thank you for your trust. I'm really proud to be here today. Good afternoon, everybody. Let's talk about our Geox people. We're connected at this moment in the world, in streaming, and I greet you all. The organizational structure is made up of the three drivers of the business plan, which are customer driven, omni-channel strategy, development of footwear and our collections based on our customer personas. All organizational positions are filled by leaders with an important international background and from market leading companies. We have built up a team that has enhanced the best existing skills in the company, as well as bringing in new skilled people as required by the business model. How can we get people on board with the proper skills? First of all, we have set up our GIDA, our Geox International Digital Academy. Aimed at developing digital skills, future skills, service design thinking methodologies to enable, to empower all people to support the entire digital transformation underway. Just one figure, 500 people have done 50,000 hours of training in 2021. Let me say, that's amazing. Digital workplace, what does it mean? Basically, it is a technological platform that will connect all people to business data, services, information, operative processes, training, and so on. We consider our company like a community and an inclusive and comfortable open environment where people can give their best in an equal way. Passion, open mind, excellence are our attitude. Finally, let's talk about the change management. We are implementing a new way of working that represents the compass of the people strategy of Geox, which put more and more the person at the center of the digital ecosystem. Finally, let me proudly show you a new Geox people manifesto. Maybe it could be the first time that in the business plan or the presentation, we show the new Geox people manifesto. As you can see, the new manifesto is a footprint that identifies Geox people all over the world because people always are the most important asset for the company. Thank you for your attention. [Non-English content], Francesco. Just to add that, this is really a serious project. Every employee in Geox has his training card. There are close to 200 training pills. Everyone has his proper path to upskill, and eventually, if he's interested, he can also join the other training pills. This project has been awarded in 2020 as the best learning project in Italy by the Italian Association of HR managers. The master in digital transformation that we are doing inside the company is in collaboration with Politecnico di Milano, Milan Institute for Technology and Skill. You will see during all the presentation that we are trying to partner with the best-in-class in each single part of our business. Why we are so investing in people? Because people are part of our ESG approach. From a governance standpoint, you know, since the beginning, and as Mr. Polegato said before, we have a code, an ethical committee that published a policy of conduct, and also of sustainable development. In addition, we have a really strong commitment for transparency with all the stakeholders of the company. Consequently, we are really trying to do our best in financial communication and also in non-financial communication. Moving to the environment, there are levers that are 100% under our responsibility, and we are trying to do our best. We are 100% green electricity in Italy, completely zero discharge in Italy, so completely circular. We are investing in solar panels. Moving closer to the product, we believe that it is a path. Together, we have opportunity to improve, but we strongly believe in the powers of associations in order to move forward together with the industry. We joined the Fashion Pact. We have a collaboration with WWF to support their projects. Our packaging is sustainable according to Forest Stewardship Council standards, and also most of our leathers are bought from tanneries belonging to the Leather Working Group. In addition, we are trying also to partner with the leaders in sustainability as far as the product is concerned, ACBC, Aquafil, but later. I don't want to spoiler the presentation of my colleague. I'm really proud to see that, in any case, technical analyst included Geox in the sustainability top 150 leaders according to 35 KPIs included in a non-financial communication. People are starting to see that Geox is investing in sustainability. We have been included by La Repubblica and a German survey institute in the Green Star 2021. We close the focus on the core. Let's start with the new chapter of growth. Let's start with the bigger and better, that is really the core of this presentation. Just a look at the competitive arena, the global footwear market, including sport, is really big, EUR 338 billion in the world. Focusing and getting closer to our core market, excluding sport, technical sport, so to our core business, it's worth EUR 74 billion in the 27 European country, plus U.K., plus Russia. We want to play in the price range €79-€150. This is a clear statement regarding the positioning of Geox. We don't want to change the position. For sure, our strategy is to add additional volumes in the premium segment, trying to increment a little bit the average prices of our products. You will see the strategy in order to achieve this. This is another important point. Finally, after years, Statista consider that footwear market size will grow after the drop of the pandemic in the next 4 years at a CAGR of 4.6%. We have the ambition to more than double this growth rate because, first of all, for two reasons. The first one is that people are looking for brands that embed wellbeing, human comfort, casual authenticity, and we strongly believe that these are values of Geox. The second reason is that, in my opinion, our business plan is solid. There is a clear strategy, a clear execution plan. It is simple based on digital growth, and so I believe that we can deliver a CAGR in the region of low double-digit figures. Even more important, I think that the competitive position of Geox is really strong based on our assets that are first a unique patented technology that provide the product with really better benefits, a strong brand awareness, an Italian DNA, and this is important in our resilient industry, a wide and established footprint, commercial footprint, with more than 700 monobrand stores and close to 10,000 doors in total, and then people and our sustainability mindset. Let's start from the real focus, our why, our role in the world. We believe that our purpose is to improve people wellbeing on the move. We believe that in comfort and in style, we, you, can go one step further. Let's start the presentation with our Chief Marketing Officer, Roberto Lobetti Bodoni. Please, Roberto, go ahead. [Non-English content], Giulio. Good afternoon, good morning. From my part, I have the pleasure to share with you the brand and marketing strategy today. The pandemic showed a crystal clear consumer trends emerging for the future. This research from Landor, like many others, says that the consumer will be more intrigued by purpose-led brands that believes in a higher purpose. The consumer will be more engaged by proposition that leverage on casualization, comfort, and will be very interested in high-tech product ingredients. This is something that really resonate with our DNA. Let me say there are very few brands are well-placed as Geox to meet those trends ahead. In a fast-changing world, in an uncertain scenario, we deep dived into consumer data to write the next chapter of growth for Geox. We got our customer centricity project started. As you can see, we are used to represent it as a circle because the consumer is at the center of everything we do, and also because it's a never-ending process we can learn and benefit from. We started, of course, from understanding who is our consumer and who is our potential consumer, our prospect. If we compare the consumer profile of the footwear industry in the key markets to Geox, it's easily understandable that we have a strong leadership on kids, and we still have room of improvement in the woman gender. Looking at the age groups, we're not focusing that much on the age group between 15 and 34 years old, where most of the volume are made by sporty brands. We have a very high loyal customer in all other segments. Partnering with Landor, we identified 12 key personas that represent our customer and our prospects. We got plenty of data about them, social, demo, behaviors, but also emotional connection to the brand in order to understand the drivers and barriers to entering our funnel and build a strong product and communication proposition to sustain growth. Then we focused on four key personas that represent our marketing target, that represent also the highest potential for growth. So it's clear for who we are in the market, for who we play in the industry. It's important to understand where to play in which segments. We run a deep segmentation of every kind of product in the market from a customer insight perspective. What does it mean? We answer every single questions about the drivers and the barriers to buy a certain pair of shoes in order to understand which kind of needs and beliefs are fulfilled. Thanks also to our future market data modeling tools, we were able to get a clear picture of the future of the market in terms of trends and size. Even more, we set a clear goal for Geox where to play and to grow. Of course, the current is given by comfort area, so this is in our DNA and this is where Geox is clearly leader. Also athleisure and walk style are a tremendous opportunity for growth. Entering into new segments and gaining new customer, but also increase penetration the actual customer and gaining market share in the current segments, are key enablers for growth. This year, we launch a beautiful design product, Spherica, with the aim to enter in the athleisure segment and gain this particular customer. It was a terrific success. The creative idea was, as the president said, to deliver a message that talk about the benefit, how we make you feel with a product rather than having our superior technology explained. The technology will always be the reason to believe our product are better than others. Video. I wanna shout it to the world so they know. My sweet baby loves me so. She got me going, yeah, she turns me on. She loves me. My sweet baby loves me so. She got me going, yeah, she turns me on. She loves me. Yeah, she loves me and it blows my mind. Yeah, it blows my mind. She loves me. Yes, she loves me and it blows my mind. Yeah, it blows my mind. She's my lover. She's my lover. This is how consumer knowledge brings a good strategy and deliver good results. As someone noticed in the room that we shot this commercial just behind the location, yes. After understanding who we are in the market, in which market we wanna play, we wanted to make sure to be the right brand, the most compelling brand to sustain growth, both on customer and prospects. Our brand is very well-known, as you see in this chart. Awareness is higher than 90% in every key countries and consideration is higher versus benchmark. To achieve our full potential and keep on growing, we are supposed to keep on improving our consideration. 'Cause up to now, Geox is very well-known for something different, our unique technology. In the future, we wanna be known for something that people really care about. That's why with Livio and all the leadership team, we set and agree with a new brand purpose that inspire people inside and outside the company. The purpose is we improve people's wellbeing on the move, 'cause we strongly believe that in comfort and in style, people can go one step further. Now how do we serve this purpose? We design beautiful innovation to wear, 'cause we are Italian, we in our DNA, inventors with good taste. The real output is products that deliver a wellbeing that anyone can enjoy, always with a care for the environment, because Geox stands for earth and X for technology, as Livio said before. Let me say that in the industry, we are the only one brand known for well-designed and well-being products that make you look good and feel good. This is the reason why millions of people choose our brand every day. We set a clear brand framework and clear brand values. Our brand values are lasting comfort, upscale style, Italian innovation, and superior value. These values inspire every day our product development to deliver these values to the final consumer with our products. Brand is a character and has particular traits, and inspire the communication and the tone of voice with which we wanna engage our audience. These traits are spirit of elegance, authentic, inclusive, innovative, and smart. We have a clear DNA, a clear positioning. Now is the time to increase our relevance. Pursuing relevance in everything we do, we made sure to track and improve our customer experience and set up a top-class marketing strategy. We all know that nowadays a good customer experience is a brand builder, but a bad one is a brand threat. That's why we mapped and we set all the KPI we need to keep on improving, like customer satisfaction and NPS. In terms of marketing and storytelling, we reshaped our content strategy with three pillars. One, brand, in which we wanna leverage on the higher value part of our brand and share our values, product, and actions. This year, for the first time, Geox aired a brand campaign, and the purpose was to elevate the meaning of the brief from a product functionality to a personal empowerment that deliver well-beings on the move. Let's see the video. Everything starts with a deep breath. A defining moment. A big day. The opportunity that you were waiting for. A new story. Breathing can put the entire body into motion, but it's only the first step. Breathing has always been in our DNA, and creating technology to make you feel good lies in our spirit, so that your second, third, and fourth steps can feel even more natural. Geox breathes. In product, we have Spherica last spring, and now we just finished to air Amphibiox, our product, waterproof product proposition. We increased our sale by 100%, both in Italy and France, where this commercial aired. The claim was, "Transform the world you walk in." Amphibiox is, "The rains goes over our head." Let's see the video. Amphibiox is revolutionary waterproof and breathable technology by Geox. That's why rain goes over our head. Geox breathe. In order to drive conversion and be eye-catching to prospects and customers, we arrange a lot of actions like pop-up shops or collabs. The last collabs during the back-to-school aired in 12 countries got terrific success. The strategy was leveraging a new property, Super Mario by Nintendo, to get new customers and generate traffic and conversion in our direct channels. Let's see the last video. 85% sell-through in a few weeks. In China, a younger brand and a younger consumer suggested to us to play in a different way. That's why we appointed Zhu Yilong as our APAC brand ambassador. Sharing values, storytelling, and activities, we leverage his content production, and even more with... On his reach, more than 30 million fans on Weibo channels, to maximize sales and conversion and build awareness in this promising country for us. We reshaped our narrative strategy at a time to increase effectiveness in media reach amplification. Nowadays, Geox is a top spender in the domestic market in Italy, so we increased a lot our media investments, as Livio showed, and we will keep on doing, as you can see. Of course, having a lot of data, consumer data, it allows us to be more and more efficient and relevant for the final consumer. Giving the right message to the right customer in the right moment is bringing our return on investment a positive increase. Of course, we will keep on improving, gathering data from internal and external sources. Key source for internal data is the CRM. With CRM, we have a high ambition, and the ambition is to build a community that love to move with Geox products and share our vision and our product and our mission. Of course, key roles is inspiring the next generation, listening to the customer is to increase satisfaction and customer value, of course. We have a huge potential unlocking and geographical expansion that is on the plan for the next years. Few highlights on CRM. We have more than 5.4 million families that are proudly members of Geox Benefit, the name of our loyalty program. Contact strategy is very effective and represent 10% of the direct digital sale, and is a very valuable sale because a loyal customer's average ticket is almost 40% higher than an average. Also, thanks to a very highly customized marketing and communication model. Customers inspire everything we do beyond strategy, brand, marketing activities. Since the end of 2020, the trading line-up mentioned by Livio allowed us to have a customer inspired product calendar that starts from key events, what is happening in reality in the world, the consumer mood, the propensity to buy or to have certain behaviors versus a brand or an action, and to find the most compelling brand expression to engage our customer. Entering into product area, I welcome Diego Porro here on stage, and I thank you very much for the attention. Thank you, Roberto. Good afternoon, everyone. Let's talk about product strategy. To talk about product strategy, I felt it was important first to go through the milestone that led Geox to where it is now. Everything started with a genius idea, a unique technology, and a patented construction, and we had a huge success. Following that, technology never stopped, actually kept developing in Geox, and another big success was presented in the market with Nebula, so a shoe that could breathe not only through the sole, but also through the upper. Then again, the Amphibiox, shoes that were completely waterproof. This technology was then developed also for more formal shoes with leather soles, and again, something really unique and very successful. Amphibiox came, Aerantis came, with ventilation in motion, having always the customer well-being as a focus, another success, a technology that allowed air circulation in the shoes, something really unique and very, very successful. Coming to nowadays, as Roberto said, the huge success of Spherica, where not only the breathable concept, but technology took us to the comfort, actually the ultra comfort, something that you can feel from the day you fit for the first time these shoes till the end of the day with immense satisfaction. These have been really the strategic pillars of Geox, a unique patented construction, a constant focus on well-being and comfort as a must. Really best-in-class know-how. The second strategic pillar has been the technology. Something has to be innovative, technology has to be a focus and innovation a must. Third, priceless experience. To offer to our customer something with a superior value, something with an amazing report value for money. Finally, the distinctive creative thread. As Roberto and Livio said, we are an Italian brand. We are proud of it. We have got good taste in our blood, and we develop shoes that are really timeless. Going forward, we decided to grow the business and to create a very strong product development. We decided to focus on four pillars. The first one is the lasting comfort with all the technology and innovation that is very well developed in Geox. The upper casual style, we will see why, the opportunity. The spirit of elegance that has to be part of an Italian brand, and superior value, so this amazing great value for money. First, talking about positioning, as Livio mentioned, what we felt is that we had the possibility to develop products with a more premium perception, and also with more contemporary look. In this slide, you can see that our goal is to distance us apart from the active and more the player like Nike, like the Skechers, the Adidas. Go back to the roots, the upper casual universe where we started from and in a more premium universe and segment. In terms of customers, we felt it was very important to study with Roberto, which were our current customers and also the new customer that we could take to grow our business. With all the studies and also looking at the mega trends, we realized that we had a different customer personas that we should target to develop our shoes. Definitely there is this huge trend that is the casualization process that particularly after the pandemic became very popular. The forever young spirit, the manager mom that are looking for shoes that are not sneakers to go to the office, but at the end of the day, as comfortable as sneakers or the contemporary woman that is looking for, yes, a sneaker, but less active with more an upper casual look, with more a sense of elegance, a certain taste that you cannot get from the classical active sneakers. To go more in details, what we decided to identify as our five strategic pillars to grow the business was one, to push on the women category. We've got a big opportunity there. Our percentage of sales is at the same level of men and women typically are more shopaholic than men, so we know that we have got a big opportunity to grow there. Second is to push this segment of upper casual, so really going back to the roots. Third, to keep the leadership on kids, where really we are leaders, and we want to continue and to push to capitalize on this leadership. Four, sustainability, very important to our brand, as Livio explained. We will see what we have done in terms of product development. Technology will always be part of our strategy, and every single product of ours will have a technological touch. To be a bit more clear, to deep dive in the universe of shoes, you can see that we can really divide the shoes in two groups, the sneakers and the non-sneakers. In terms of product offer, we are going to develop increasingly sneakers with a more of an upper casual style, an upper casual look. Of course, the outerwear, the athleisure will be there. They are big trends, so they will be part of our range, but we will be focusing more and more in the upper casual universe. Even more in the non-sneaker universe, we are aware that the formal is still a segment that is important, but it's decreasing. The leather sole are a bit more uncomfortable. As I said, the casualization process is definitely there. We are going to increase more the product offer in the upper casual universe. Therefore, rubber sole, suede, soft materials, both for men's and particularly for ladies. Kids, we have seen from the presentation before the huge success that we had with the Super Mario, even before all the collaboration with Walt Disney and, in general, gimmicky and interesting collaboration has always been very successful for the Geox sneaker. We will continue on that. It's definitely a big trend, so it's part of our DNA, it's part of our business model, so we will continue. Together with that, we will continue developing new technologies like the lights and like other technologies that you will see later on that makes our business of kids so important and so strong. The second part is also here, the upper casual universe. Shoes that are not necessarily sneakers, but they are more shoes with soft materials, beautiful leather, soft rubber soles to make the kids feeling very elegant and comfortable. In order to be very clear, very focused in terms of architecture of the collection, we decided to rationalize our offer and to be decreasing the number of SKUs by 15% versus 2019 to divide the structure in three very clear groups. The core, the more, and the new. The core, representing 40% of our offer, will be our shoe families that will become iconic. They will have longevity. They will help to create our identity and to make a statement. Let's think about the Nebula, let's think about the Aerantis and the Spherica now. We will have the more seasonal animations of our iconic shoes. They will be representing 35% of our total range, and they are very important because they are the shoes that are the one that help to capitalize on our bestseller to refresh our iconic and to catch the new trends. The third group, the new, will be representing 25% of our structure and they will be the shoes that will be more aspirational. They will be more press worthy and they will be perfect to attract new distribution. You will see how important is for us when we develop a structure, a range, we think about the final consumer, but also we think about the distribution where our shoes will be sold. Here you can see that the core will be perfect for what we call in wholesale distribution that is good, so the normal account, the big shoe specialists, and the department stores. The more for the wholesale distribution that we call better, so the key accounts, the qualified department stores, and the shoe boutiques. The new for what we call the best in terms of distribution, so the high-end department stores, the apparel boutiques, and the shoe trendsetter. In a nutshell, very clearly what we will be doing, definitely we will not lose the market share that we have got in the mass, and we will keep developing collection that will be more price and volume driven. Having said that, we will be focusing increasingly in collections that will be developing the icons and the seasonal animations of our icons to target a more qualified distribution. On top of that, we will be developing more contemporary shoes and families to gain a more premium distribution. This is an opportunity that we will be catching. We also talk about sustainability. It's so important for our brand in every different aspect and definitely in our products. You will see in full winter a lot of projects that are completely sustainable, different families that are either like our icons, the seasonal animations of our icons or completely new families. We have been developing the materials from fabric to leather with companies that are very keen on sustainability and therefore they gave us leathers and fabrics and raw materials that are completely sustainable. We have been partnering with ACBC, that is this Italian company developing completely sustainable sneakers or with WWF and many other activities as you have seen in Livio's presentation. From our part, every month next season, there will be a specific product with a sustainable concept. What is incredible is that not only we feel proud of following this trend, but also our customers love it. As a matter of fact, our sustainable shoes are always bestseller, so we will continuing on this project, on this path, and we will increase more and more. We talk about five strategic pillars. We said to push on ladies' shoes. We said, very important to target the upper casual segment, going back to the roots. We said, number three, to keep the leadership on kids. Technology, sustainability, five points. We have also got another element that is leather goods. For all intents and purposes, I feel very confident about this project. I think it's perfect for our brand. As a matter of fact, shoes and leather goods, they always go together. They are perfect for cross-selling. We are talking about a category that has got a non-season business, that has got very high margins, that has no sizes and therefore, as a matter of fact, very profitable. We are going to launch this season for winter 2022 for the first time, the first pillar that is a range that is called the Cashmere Line, made with a beautiful naturally tumbled French leather, very much consistent with the pillars that we underlined before. It's going to be with a very much spirit of elegance, timeless in the upper casual segment, very functional and something that will rest for a number of years and will become our first iconic collection. Now let's have a look at a glance of our amazing fall winter 2022 collection. Decisions as I go. To anywhere I flow. Sometimes I believe. At times I'm rational. I can fly high. I can go low. Today I got a million. Tomorrow I don't know. Decisions as I go. To anywhere I flow. Sometimes I believe. At times I'm rational. I can fly high. I can go low. Today I got a million. Tomorrow I don't know. Now grandma holds you home. And pink arrives to show. We're all playing the same game. Waiting on our luck. We're unknown and known. Special and a clone. Hate will make you cautious. Love will make you bold. Make me feel the warmth. Make me feel the cold. It's written in our stories. Written on the wall. This is our call. We rise and we fall. Dancing in the moonlight. Don't we have it all? Decisions as I go. To anywhere I flow. Sometimes I believe. At times I'm rational. Thank you very much. Now I leave the stage to the beautiful apparel development. I leave it to you, Peter. Thank you. Thank you very much. Diego, we all love our footwear collection. Diego and his team is doing a terrific job, but outerwear has a special place in my heart. Welcome everybody also from my side. Before to look into the future of our outerwear collection, we need to step back and look at the long history, let me say a love story of this product, and the Geox brand. Everything started in 1999. The first image is about 2001, where everything was about technology, styled, tested and proven. Then we move into a more stylish representation of our garments until now with a contemporary take on style and innovation. The outerwear business has been not steady in the last few years due to different reason, mainly product choices. We did a total look, we did the kid collection and then the retailer rationalization. Now we have a clear idea about what will be next. Next will be a focus on outerwear collection for men and women, where technology and style will blend perfectly together. Let's have a look at our 20 years of innovation. Everything start with our main technology, the breathing tape. At the beginning was very simple execution, just a couple of eyelets on the shoulder, and then we are ready with a perforated laser cut, same fabric integrating on the shoulder. A completely new take on our technologies, completely integrated and very best performing. It's not all about the breathing tape, it's all about other technology that we have developed during the years. We already know Amphibiox. Amphibiox is a completely waterproof technology, seam sealed, that protect all our customers for any kind of element as the beautiful spot as we've seen before has presented to us. We also explore some other kind of technology like XLED. XLED was a very innovative jacket with integrated LED that you control from your smartwatch or you can control from your smartphone for urban mobility. You can be visible when you need it, and you will be not visible when you don't need it. The jacket is very clean, but inside you have a special light that you can use it when is needed. Aerantis because sometimes to make a very good breathable jacket for winter need a more sophisticated kind of technology. Aerantis is enhancing as our breathability into the winter jacket. Last but not least, AWC. AWC is our modern take on waterproof technology. It is more simple to construct, is more innovative, and is very flexible for our contemporary life in the city. It's not all about innovation on technology, it's also about innovation of style. Here we have a very quick glance at our new editorials for Winter 2021 collection. You can see how our collection that is developed on our customer personas can be styled and presented to a broader audience for women and for men. We are ready for a completely new future, and the future is all about product strategy. It's all about four clear pillars, distribution, merchandising, seasonality, and sustainability. Distribution is all about focus on our core markets Italy, Spain, France, and Germany, and especially Russia. Russia is very crucial for outerwear, where our turnover is very high and the positioning is very interesting and different from the rest of our European countries. Focus on 4 countries plus Russia. Merchandising. Merchandising is all about efficiency of the collection. We already start, it's not something that will be in the future, but is already there. We start in 2019 to reduce the number of SKU in our collection, to make the collection more efficient and to make the collection more profitable. We will be completely ready from 2023 collection. Seasonality. If you work on an outerwear collection, seasonality is crucial because not all not every part of the year is very successful for jackets. You know, some jackets sometimes are okay, sometimes are not okay. It's not about to deliver the right product at the right time, but it's also about to deliver the right technology at the right time. Starting with our Amphibiox technology that protects you from every kind of element, we move into our brand-new UV protection technology for spring, fall, and maybe summer. Last but not least is sustainability. Sustainability is not an overnight achievement. It is a journey. We start with a small step. We start from the product. We start from the materials. In our new Fall-Winter 2022 collection, we will have 23% of our jackets completely sustainable. It means three main components, outerwear fabrics, lining, and padding will be completely sustainable. The 62% will be with one or more sustainable fabrics, so close to the complete sustainability. Starting from Spring-Summer 2023, every jacket in the collection will be one or more sustainable components. Until the end of 2024, we will reach the 19% of our offer completely sustainable in the three main components. It's just the first step. The second step will be the packaging challenge. Starting from Fall-Winter 2023, we start introducing sustainable boxes, polybags, and hangers. As I said, it's just the beginning because sustainability is a very long trip. We are starting in the right way, we look positively into the future. Thank you for your attention and enjoy the coffee break. Thank you very much. Home is where I want to be. Pick me up and turn me 'round. I feel numb, born with ugly cards. I guess I must be having fun. The less we say about it the better. We'll make it up as we go along. Feet on the ground, head in the sky. It's okay, I know nothing's wrong, nothing. Heyyy, I got plenty of time. Heyyy, you've got light in your eyes. You're standing here beside me. Under the passing of time. Never for money, always for love. Cover all these days if nothing is left to say. Home is where I want to be, but I guess I'm already there. I come home. She lifted up the rings. Guess that this must be the place. I can't tell one from another. Did I find you or you find me? There was a time before we were gone. With someone else, this is where I'll be, where I'll be. Hey oh, we're drifting out. Hey oh, sing into my mouth. Out of all those kinds of people, you've got a piece with the few. I'm just an animal looking for a home, seven-day space for a minute or two. And you'll love me till my heart stops. Love me till I'm dead. I got a love I grew for you. Color of the black box hit me on the head. Ah-ooh, ah-ooh. In three minutes, we will start the presentation. Please take your seat. Thank you. Bene. Allora, let's keep the rhythm. I ask our colleagues to maintain this fast and very straight to the point attitude. Let's start the second part with the digital transformation and omnichannel and omnicustomer. Giulio Salvucci. Maybe at the end, we spend just 10 seconds per each one of them, because I'm really proud of my team. All of them have worked for international companies with really strong experience in delivering results. Thank you. Thank you, Livio. Thank you. Good afternoon, everybody. Thank you for attending this presentation. Today, I will share with you the digital strategy of Geox for the next three years. Before starting with the actual strategy, we asked ourselves, "What should be the role of digital for Geox as a company?" In order to answer this question, we decided to look at what was happening in the market, especially when it comes to consumer behavior. We decided to make a partnership with BCG, Boston Consulting Group, that gave us a full view on the main trends in the market, and here main outcomes are two. The first one you can see in the top right part of this chart is more than 30% of the sales in our industry will be generated online in 2023. The second one is 45% of the sale will still happen in store, but will be somehow affected by an online navigation. Examples are omnichannel journeys, research online and purchase offline. Having understood that, it was quite clear to us that digital for Geox has two main roles. The first one is a key tool to transform our business model across all channels. The second one, digital, it's a channel itself, so it's probably the single biggest opportunity we have in front of us to make our revenues increase in the next three years. Let's deep dive into the business model transformation. When we realized that the business model transformation was across all channels, all company areas, we immediately realized that we needed a digital transformation committee. The following agile principle allow us to have the full level of visibility and prioritization across all initiatives, across all channels inside the company. We identified four main pillars of our digital transformation. We call them unified commerce, which is about creating new digital windows, but also better connecting all of them together. The second one, new era, which is about a new wholesale era, so it's a full rethinking of our wholesale ecosystem, and later I'll show you an interesting example. We have digital backbone, which is everything related to our technological infrastructure. Lastly, the customer centricity. How can we interact and can we engage in a better way our client relying on data? That's an interesting example. We decided to make a partnership here with Accenture in order to run a discovery phase for our new wholesale era. The main outcome from their research is expectation of the wholesale clients are increasing more and more, and they are becoming similar to the final consumer one, so the B2C expectation. Here the idea is to leverage on the experience we did in the past years by creating a B2C infrastructure and creating a very similar one for our B2B network in order to increase the service level on one end, and reduce the cost to serve of each single account. Let's move now into the digital sales. As we said, digital is a channel, it's a, it's an opportunity. I go back for a second to the BCG research. Here we have a further level of detail. Just to recap, we still have 45% of the sales omni-channel. It's the light gray bar here. On top of that chart, you can see a further level of detail. BCG expect in 2023 to have 14% of the revenues in our industry generated by the direct online channels and 18% generated by online platforms like Amazon, Zalando and so on. What's our recipe for to balance all of those three channels? Well, actually, we believe in a combination of these three digital channels. Omni-channel boost is crucial because it allow us to bring traffic from online to our stores. The direct business is absolutely fundamental because firstly generate the omni-channel journeys. Secondly, allow us to present the brand and the collection at its best. Thirdly, it's a powerful tool to make people subscribe to our database. Thirdly, the role of online platform is to reach a broader audience of clients. On online platforms goes more than 50% of the total traffic of e-com, so it's definitely a powerful tool to extend our reach to new potential clients. Let's go deeper into all of them, starting with omni-channel boost. This is our path to a full omni-channel integration, which started in 2019, so it's not today, with the insource of our e-com business. Today in 2021, we already integrated the main omni-channel services, and later Massimo will give you some interesting figures and detail on how they are performing. Next year, 2022, we expect to roll out also a new service called Ship From Store, which is an e-com order fulfilled by our physical network, and the target is for 2023 to reach the seamless integration, which is for us, the full integration of both inventory management and order fulfillment across all channels. We also designed our omni-channel fulfillment model, and the interesting thing is we realized that it must go in two different direction. We have on the right part the in-store evolution, which is about launching new digital services in store, but also making the existing one more convenient and easy to use for the clients. The second one is about warehouse and how we manage the inventories. It's absolutely to put together all the inventories we have in a single place and making them available for all the channels. Let's go now into the direct web business. As we said, direct business, our geox.com website, it's absolutely crucial in order to activate omni-channel journey, make people subscribe to our website and present the collection and the brand. Here the keyword is definitely personalization. We want to personalize the content, the message, and also the product recommendation for each and every of our clients. Of course, in order to do that, we must leverage data. We absolutely want to go deeper into geographies. The single biggest opportunity here is probably Russia. We are planning to open the e-commerce Russia next year. On existing geographies like China, we are opening new channels. In China, for example, we just released WeChat, and we are about to open TikTok, new interesting channels, but also on existing territories like in Europe, we see a lot of potential from localization. Localization of service and localization of language, of course. Lastly, the loyalty program integration. Make the subscription and interaction with our loyal client more seamless, it's absolutely a goal for us. Lastly, we have the online platform. As we said, online platforms are incredibly powerful to reach new clients because a lot of traffic goes there. Of course, we want to control that kind of distribution, so here the keyword is quality. It's quality over quantity in the number of accounts. We want to focus on a small number of accounts and creating very solid partnerships with them. We want to have a centralized management because nowadays all of those big players are international, so we want to oversee their activities from a very central standpoint. The in-season management is a new way of working, so it's no more sell-in only focus, but it's focusing on the sellout phase. Lastly, new business models. Here I'm speaking especially of marketplace or e-concession, which is basically the possibility of having a direct business in a multi-brand platform. We can control everything regarding pricing, regarding commercial strategy, but leveraging the traffic of those platforms. Before finishing, some early signs that probably our digital strategy is already in the right direction. I'm very glad to share with you some awards that we received this year. We have KPMG that awarded us for the second year in a row as the best customer experience excellence in top 15, so it's across all industry. We have Le Stelle dell'E-Commerce from Corriere della Sera and Statista that awarded us in top 15 website in our industry, and RetailX that made the list of top 500 website in Europe, and we ranked in top 150. I thank you very much for your attention today, and I invite on the stage Massimo, our global retail director. Thank you. Good afternoon, everyone, and thank you for joining this call. I am super excited because today I'm gonna share with you the new chapter for our retail. You've heard a lot about retail, the rationalization, lot of good things we have done in the past years, but in the incoming three years, there will be a further transformation of our retail. We're going to have fewer, but definitely much better-looking stores than the one we have today. We will keep investing and strongly digitalize our retail in order to deliver an even better and more elevated customer experience to achieve a higher profitability. This is all what we want for our retail. Our retail strategy is based on four major pillar, very simple, a clear network segmentation, a real customer centricity, an advanced omni-channel mindset, and last but not least, a revolutionary approach to a team empowerment. Under these pillars, there are different work streams. Several projects, most of these projects already started and rolling, that will deliver a sustainable, profitable growth for our network in the coming years. The first pillar, the network segmentation. Our operating model has different focus. A clusterization that will define a specific role and weight for each one of the clusters inside this theoretical pyramid, where the different weight has accomplished a different role for each store. There will be an optimization of the network with a clear focus on the four core markets, where Italy is our domestic market, the most important one. Ultimately, we will align all the different activities based on the clusters, based on the different shopping behavior of our customers inside these clusters. We create four different clusters, and they respond to a different role. The first two clusters are brand-led stores, where the flagship are the most important one, but the very small one, they represent a small percentage of our total footprint. These beautiful stores are in top location in global key cities, where we deliver the highest customer experience, where we glorify our brand. We have the brand enhancing. Brand enhancing are essentially location in high streets, where we, in big cities, deliver higher visibility for the brand, and it's where we build aspirationally for the, our fantastic brand. The vast majority of the stores belonging to the last two clusters, the business-led stores, where the brand supporting are essentially shopping mall location, different shopping habits compared to the high street location. Here in big cities, we deliver higher footfall, higher profitability. These stores have been built with a very commercial format. Here, we really talk about our cash cow for the company. The last cluster, not the less important, the brand neutral, are very important essentially for us because, these are mainly franchising and offer the possibility to our brand to go more capillary on the different market. These stores are built with a very cost-effective concept to maximize the return on the investments made by our partners. The last two years have been very intense in terms of rationalization. The incoming three years, we are gonna keep investing in renewing the stores, only the profitable stores. We expect that by the end of 2024, 80% of our DOS network will be completely renewed with our latest concept, the X stores. The rationalization will continue, but with a fine-tuning. We will keep closing down some more stores, the ones that are at the end of their life cycle, the stores that are non-performant, or the stores that are not strategically relevant for us across all the different clusters in order to achieve, in every single market, the perfect mix between all the different clusters. We will align all the activities and the offer inside our stores, inside our clusters. We know that there are different shopping behavior based on the location of every store. We know that the customer experience, the visual merchandising, the store concept need to be different. One strategy doesn't fit all. As we know that the product merchandising mix needs to be done accordingly to the location of our stores. Stores in high streets have a much higher mix of women's products, while the stores in shopping malls have a higher mix of kids' products. We will merchandise them accordingly to that. You've also heard about the ongoing rationalization of the SKU. What we're gonna do is increase the efficiency of the collection that we inject in our stores in order to reduce leftovers and be more efficient with what we have inside of the store. While leveraging the omni-channel services like the showrooming project, we will be able to offer a more vast option of colors without having the physical stock present inside of the stores and become more performant. Our second pillar, the customer centricity. The customer really comes first, is really at the center of all our activities, but we need to know more about our customers. We are investing in more projects, in more digital tools that will make their life easier at the end of this journey. To know more about the customers, we need to collect data. To speed up with this process, we have in all of our stores new digital tools that will help us and improve data quality and quantity. These data are crucial and will support our contact strategy, a contact strategy that will drive quality traffic to the stores and sales. We also just released the unique digital customer ID. It's a good step in the right direction. We are merging online and offline customers' data. We are now delivering a seamless experience between online and offline. We simplify the process for the consumer, and we improve the advantage for our customers. Traffic is crucial in retail, especially nowadays. We know that Google My Business is a traffic driver, is an important tool. We've been investing in updating all the points of interest globally. All our stores now are completely updated with all the relevant information that any consumers may need when they start browsing on the internet. Simple things, telephone number, opening hours, latest collection, latest campaign, how to get there to the store. Now everything will be constantly updated and maintained to make the life of the customer easier when they're looking for our Geox shops. Becoming consumer-centric without listening to the customer is a little bit useless. Voice of customer is a big project for us, is a big game changer. We are partnering with Medallia, as Livio said, another best-in-class company. They've been partnering with the biggest company globally in this journey. This program will replace the good old mystery shopper of the eighties. We will start from now on to monitoring the customer experience satisfaction after purchasing for all our loyal customers and the anonymous customers in the future also. We will start answering and listening the customers' review and give them feedback in real time. We'll really turn signals from the customers from the field into action that will help us and drive future sales growth into our business. Our third pillar, omni-channel. You've heard how important it is in Giulio's speech. We are enhancing the current O2O concept, online to offline concept, optimizing the current set of omni-channel services like the click and collect, the click and reserve, or the actual return in stores. These services have been launched successfully, are doing good, and they will do even better in the future. The most important one is our endless aisle, the one we call Geox at home, who is already representing more than 6% of our total revenues. This is not bad, and we expect them to grow until 10% in the coming months. Beginning of 2022, we'll release the last one to complete the set of all the omni-channel services, the ship from stores, to really make a seamless experience between the two channels. We have also gone paperless. What does it mean? We added more devices in store. We eliminate paper. We increase dramatically with that the data accuracy in store. All this data that we saved are crucial in our journey. We also made a right step in the good direction to become a more sustainable retailer, while easier the experience for our employees in store in collecting actively these data. On the fourth pillar, team empowerment, you heard this morning about how important are our people. They are the last mile in delivering the experience. We have been investing a lot in the past years, and we will keep doing it. Customer experience is really at the focus of our core activities. As a small result, but we are very proud of that, Geox has been awarded for the second year in a row by Ipsos and Largo Consumo as the Italian best footwear brand by our consumer for the best customer experience. This is not bad as a start, but we will keep investing in new project, in new digital tools, that will enable our teams on the field to keep monitoring all the activities, all the store operation, and all the things regarding the retail excellence because we wanna be the number one in delivering the excellence in the execution. Last, but probably the most exciting project, is our digital business community, Step X. Step X is now live since few weeks, I say, since last November. We have been partnering with Logotel, a global company, also, expert in digital community. We build this app together. It's a platform. It's really a super powerful tool. It's not a social media. It's not something just to engage and make likes with our employees. It's a really powerful business tool that is now accessible to every single employee, not just the store, but every single employee, even from their own devices. They will be now able to learn, perform, and stay connected with us, and us, the company, with each one of them. It's a two-way communication tool. It's a good platform to learn and to be ready for the future. It's a new engaging way for us to do retail. It's our way forward to do retail. Thank you, everyone, and let me introduce our Head of Wholesale, Monica Guidolin. Thank you, everyone. Thank you, Massimo. Thank you to all of you for being here, and good evening to everybody. We start our journey in the wholesale. First of all, we start with the mission. Wholesale aims to really reach a large part of customers, developing partnership able to generate value for clients and for Geox. Digital will be central for wholesale transformation journey, and the synergies of these four pillars will be really supporting our strategy. The new B2B ecosystem, the retailization of the concession, the distribution segmentation, and the digital door and territory management. Let's go through these four pillars. The new B2B ecosystem. We will develop a B2B ecosystem, B2C-like, since the e-commerce experience is driving the expectation of our clients and our buyers. We will activate four main platform. First of all, the 360 customer view to have a unique customer journey across all touch points, online and offline. The second one will be the empowerment of the customer service. They will have more effective customer interactions. Then sales campaign, full speed to the rollout of the digital selling tools for our agents to have a fast, sustainable sales process. The most important, the B2B replenishment to drive and proactively engage all our customers in this B2B system. The second one, the retailization of our concession business model to elevate our brand positioning. The holistic view of our key strategic partners will enable us really to optimize the profitability and the performances through the guidelines on the assortment through a centralized inventory, the in-season management, and the omnichannel commercial calendar. The third pillar is distribution segmentation. Thanks to the digital tools that we have available, we set up the distribution mapping assessment to roll out our segmentation strategy. We have three main drivers. The client's priority, we define rules of engagement based on profitability, strategic fit, and growth potential. We define and establish very strict guidelines and boundaries for the assortment of our distribution versus the omnichannel. Concerning the sales campaign customization, we've mapped and personalized the client's journey into the three clusters of the segmentation, good, better, and best. Digital door and territory management is a fantastic tool where all our sales force across the world is daily interacting with global and local organization to provide data. We also provide the data and analytics to our sales force for clients portfolio in order that they really can take care of the customer and they can work on the performance of our customers. That said, all these four pillars will leverage our wholesale distribution strategy, which is regain volumes. We want to regain volumes in a qualitative and premium distribution. Let's really see the strategic building blocks, so distribution and market share. As far as the distribution, we have a clear focus on the key partners, on the independents, and on the distributors. For market share, very, very high focus on women, high double-digit growth across the categories, reinforce our leadership in kids and scale market position in core markets, and for the apparel build a solid growth also in this important category. What is wholesale? Wholesale distribution is a very solid network and very wide network of 8,600 doors across 80 markets across the world. In these clusters, the key accounts and distributors, concessions, and independents. It's very important to have a channel variety because we allow us to leverage the market opportunities at the maximum of the potential. This will drive our ambition to 2024 with a CAGR on 2021 of +40%. Let's have an overview on the distribution segment, the focus that we were talking before. First of all, the key partners. We want to be bigger and better. We have less than 20 clients that in 2024 expected revenues, they will represent the 30% of our revenues. We will focus to drive the consumer assortment to foster other categories in the distribution, to follow the in-season management with a focus team in our HQ and in the field, and to implement the shop-in-shop concept in all the key cities. Another important channel is the independents. The independent channel is and will remain a very important asset for our company. It is a very important asset because it has a very high profitability and because we aim to reduce the cost to serve for the 40% of our customers by 2024, thanks to the new B2B ecosystem. I want to focus your attention on the Spherica impact during our spring-summer 2022 sales campaign. We gain additional distribution, thanks to this amazing project, more than 600 doors, and we reach over 85% penetration of the current distribution with a 30% positive like-for-like. We can see how this channel is so sensitive to the market, 360 marketing activation and TV campaign that we have run. Another important key element for this successful sales campaign has been, of course, the outstanding sellout of spring-summer 2021 season across all channels. We move now to the global international distributors. We are talking about exclusive partners in markets where Geox has no direct operation. We are speaking about 30 markets. They are ambassadors of our brands. They are our strategic partners in the business. In this channel, we will be very focused on high potential markets to expand the distribution, the coverage on key cities. Of course, we want to ensure the global consistency. To do that, we will invite all our top clients and all our distributors in our new international showroom. We will share with them our values, and we will share with them our transformation journey in the brand, in the innovation, in the omni-channel, and in the marketing strategy. Let's move now to see to have an approach on the geographies because we have a different approach by market in terms of priorities and targets. The overview by market, North America prioritize digital, Europe establish top leading position on the core markets, Eastern Europe accelerate our growth, and APAC and rest of the world expand the footprint. Let's go one by one. North America prioritize digital with our key partner to accelerate services and, of course, the performances. As far as footwear, we will expand the perimeter on the adult and grow the kids' like for like, as well as ready-to-wear to explore key accounts' 360 partnership. This will bring us to have a weight in the total wholesale brick-and-mortar of 4% in 2024 and a CAGR of 15%. We move now to Europe. We said establish top leading position in the core markets, leveraging qualitative distribution with our key partners. Of course, the segmentation would be really a strategic pillar, as well as upgrade the independent efficiency. Women's high double-digit growth to gain market share across all categories, so not only sneakers, but also all the other categories in upper casual. Kids fostered this magic momentum and scale other position in the market, as well as ready-to-wear maximize the perimeter and enhance our visibility in the key partners where we are present in this moment. The weight in 2024 will be 64% and the CAGR +12%. Eastern Europe accelerate the growth. In Russia we aim to become leading in footwear market and become a best premium ready-to-wear brand. The acceleration will be done through big chain and big key account, and as well in Eastern Europe we will invest in strategic partners. We will exploit the really amazing distribution that we have in independent distribution. We see a possibility to penetrate also the athleisure market segment and to exploit adult and also in this case the woman categories. The weight in 2024 will arrive to 15% and the CAGR is +10%. APAC region and rest of the world expand the footprint. A great priority on the Greater China with an expected CAGR 2019-2024 of +28%. Here we will develop a strategy on regional distributors, and we will expand our presence in tier two cities, as well as the global distribution in all Asia Pacific and the Middle East and Latin America. We support the growth acceleration in the key markets. The weight in 2024 will be 17% and the CAGR 2021-2024 will be +27%. Let's move now to a success story of Russia, of our Russian market. In this market, we have already implemented most of the actions and the enablers that we have shared in the previous charts. The acceleration growth for this market has been given by establishing a relevance across, first of all, the distribution, our own retail, the franchising network, wholesale, offline and online, and as Giulio said, the coming on own e-commerce. There is then a very strict segmentation versus the distribution in order not to cannibalize the different channels. Geox Kids is really a really great successful channel with the kids stores and shop in shop. For the ready-to-wear, an excellent execution in all the channels has allowed really to have an important growth in this category. The brand relevance is very important and allow our customers to meet our product through all the touch points and to fulfill their needs. Very important the premium segment as well as a very high focus on the contemporary woman's, and granting really the best shopping experience in all our own retail. Of course, the customer centricity, which is granted and supported by a unique new CRM program. All these actions were able to grant a solid growth until 2019 and then to have, let's say, a slowdown during the COVID period, but always growing to bring our ambition to 2024 at more than EUR 60 million, with a CAGR of +7%. With this successful story, I would like to thank you so much, and I leave the stage to Alessandro Zamuner. Thank you. Thank you, Monica, and good afternoon, everyone. After being focused on the strategy of Geox about brand, product, and by distribution channel, I would like to take your attention now and explain how we want to transform this strategy into an effective execution plan by market and according to our omni-channel approach. Before going to the plan, I want to highlight two key points. The first one is about our business concentration of our, you know, Geox, you know, business in the geographies. You can see here two main areas. One is Europe, where we run the business directly, and one is Middle East and international distributors, where we have a business based on the third-party model. You can see that altogether, these two areas represents the 84% of the weight of our business. The area together is called EMEA and International. If we go to Europe, Italy is the largest market with a 28% of the weight of business. If you consider France, Germany and Spain together, the weight is the 30%. It is clear that these four markets are the basis of our current business and must be the focus on our business plan. The rest of Europe is 20%, which is anyway a good percentage, and also very interesting in terms of the profitability. Going down, you see that Middle East and International has a much lower weight of business with 6%, split by 2% in Middle East and Africa, and 4% with the rest of our international distributors. This is the first point that I wanted to highlight. The second point is about our market share versus the competitors. This is a very interesting chart because it's based on the results of an external research on the four core markets in Europe, showing the market share of Geox versus the competitors in the segment of a brown shoes and athleisure business. You can see very clearly that Geox is in all markets in the top-ranking value share position, where in Italy, in particular, we are number 1, even considering this segment, the sports brands. In France and Spain, we are within the you know top 10 in a very solid position. While in Germany, we are a little bit behind the top 10, but within the top 15. If we focus just on the segment of kids, in all these markets, I would say in all Europe, Geox is always on the top 3 positions. What is the takeout? That Geox is the only one brand out of the sports one with such a strong market value position in all this market and such a strong business relevance. The major takeout of this quick overview is that in Europe, for sure, we have a strong leadership in terms of weight of business and in terms of market value, and we have a huge potential in Middle East, Africa, and International, because, to be honest, we are behind the benchmark of international brand. After stating this, let's go to the plan and explain where we want to grow. We have identified four main growth areas and which targets we want to achieve in each of them. The areas are Italy, West Europe, Eastern Europe, and Middle East, Africa, and international markets. In Italy, we are still number one, but we need to be solid number one by strengthening our current leading position in all genders. In West Europe, we want to grow and gain market share, going clearly to the top five ranking position in particular in the core markets, so France, Spain, and Germany. In East Europe, we want to support the growth. Why? Because, as I told you before, it's an area where we have a very strong brand relevance, but also a high profitability. So this is a focus in our plan. Last but not least, Middle East, Africa, and International. Here we are not satisfied to grow gradually or in an organic way. We have an ambition to double the weight of the business in that area by investing with the key international distributors. What is important also to know is that each of this area, on top of the targets, are supported by a clear and detailed execution plan. Italy, France, Germany, Spain, they have all, you know, a strong local leaderships and dedicated team focused on managing and executing the plans according to our strategy and in full coordination with our HQ leadership team. In all these areas, there are specific targets of market share and top ranking position, but also common goals in terms of accelerating the growth, accelerating the profitability, and very important to optimize and upgrade the distribution with an omni-channel approach. On top of that, there is a strong attention on each plan to have a correct balance between the, our, let's say, physical business and online business, especially in Germany. After explaining where we want to grow and which are the targets, I want to focus your attention how we want to grow. In this sense, we have identified four growth pillars to have a perfect execution of our omni-channel strategy by market. The pillars are optimizing our retail network, developing international business partnerships, redefine our wholesale model by increasing our profitability, accelerating the web, and grow in the women's business, gaining market value. Let's go one by one quickly just to explain a little bit what I mean. About optimizing our direct retail network, we have identified six work areas in our plan. Three focus on perimeter and three on the performance. Regarding the perimeter, we are going to finalize our rationalization of the underperforming and not representative network. On top of that, we want to accelerate the renovation of all our selected network in order to with our newest concept, in order to maintain a consistency of our brand visibility to guarantee the same customer experience. We want to start reinvesting on the key cities with a high potential where our presence is not at the level. About the performance, we continue to support the performance by our digital omni-channel tools, which are performing very well, gaining and giving a lot of growth. We are focused on a strong merchandising strategy in the women's category, very important for our, you know, high potential growth. We want also to increase our sales penetration in ready-to-wear and the accessories categories. The pillar number two is about partnerships. We want really to reinforce our partnerships in terms of franchising, both in core markets and international. In core markets, in particular, we are already engaging master franchisees to complete our territory distribution with mono-brand stores. While in the international part, as I told you before, we are already working with the best-in-class distributors based on sustainable growth plans in long-term view. The pillar number 3 is about wholesale. Wholesale for us is a big, big business machine, as Monica anticipated before. Here we have identified four core areas. One is the developing of a strong segmentation of our distribution based on a proper assortment strategy by segments and by channel. Then we are going to focus on the top 20 key accounts in Europe to create not only business opportunity, but integrated strategies of the brand. We are implementing a strong retailization programs with key retailer based on our shop-in-shop concept, corner concept, to increase our visibility and our sell-through. Finally, again, also in wholesale, a strong focus on retail with a solid growth of our distribution and our penetration in like for like. The fourth pillar, very, very important, is about the web acceleration. This acceleration of the business must be in consistency with our price integrity across the channel. How to do that? We have identified three areas in our plan. One is the expansion of our direct platform, so geox.com, in all the European markets, also including the high-potential markets that at the moment are not covered yet. The second area is about the centralization of the relationships with the key platform and the integration of the strategies between us and the key platforms in the market. The third area, as also Giulio anticipated before, is the boost of our marketplace. Meaning that we are going to open digital stores, a kind of e-concessions model, in order to have our proper visibility, our proper control of a business based on a price integrity. Last but not least, of course, is women. We want to grow in women business. We have a clear target. We want to gain market share according to the size of demand, which is over 65% of the total adult business in footwear. We want to grow as a brand, not just as a product. Not only footwear, not only a specific category, but also in the total project. Footwear, ready-to-wear and accessories. Finally, we want to achieve a relevance in the women's business as a brand in terms of, you know, respect to our partners and market share. I finish my presentation just to highlight that this plan, this execution plan, is really driven by a clear global strategy, but also supported by solid enablers coming from the HQ. Which are the main ones? Of course, marketing. With Roberto and his team, we are working to reinvest 6% of the turnover in each of the core markets, which is a really, you know, acceleration of the communication strategy. With Diego, Peter and all the teams, we are working to optimize and maximize the synergy between the merchandising strategy of our brand and the core local demands. Again, with the product team, we are working to focus on the product, in particular in women and ready-to-wear, where we have a high potential to grow. Also, as already explained with Giulio, and the team, we are working to deliver more and more efficient digital tools to increase the performances. Thank you very much for your attention, and then I leave the stage to Livio. We are a little bit late, 10 minutes. I will be short in supply chain. This is our distribution footprint, 6 distribution centers, Italy, U.S., Russia, China, Hong Kong and Canada. They have a specific specialization by area. Italy is the most important. It delivers goods in Italy, in Europe, in EMEA, but also this distribution center fulfills 28 countries for our e-commerce, and then is able also to deliver the goods for our new channel that is marketplace, really soon. This setup does not require additional investment in order to fulfill the volumes of the business plan. However, we are investing and we are enhancing our supply chain because consumer expectations are really growing faster in terms of level of service because digital requires a new supply chain model based on speed and agility, and because the omni-channel approach requires really a centralization of the inventory and a bigger control, a higher control on the level of rotation. Today, we have been able to put together all the direct-to-consumer inventories, and we have a centralized warehouse that is able to fulfill store replenishment, e-commerce orders, and marketplaces. However, Boston Consulting has been really clearly tough on this, advising Geox that supply chains in the near future is really what should be a focus of, the CEOs in our industry because so global supply chains and operation are impacted by unusual discontinuities. First of all, unreliability. We were not used to suffer from lack of capacity to shipping crunch, to shortage of shipping containers, and consequently it's important to invest. They are advising the CEOs in our industry to pay attention also on supply chain. The other challenge is the raw material prices fluctuation, especially the oil prices, that is also pushing for increase in sea freight tariffs and increase on air freight costs. We're also experiencing a little bit of delays in the lead time of transportation due also, especially in North America, to port congestion. It's really important to assess the supply chain and the global operation. Companies devoted a lot of efforts in the last mile, invested in the last mile. Now it's time to invest in the first mile. There are many tactics, actions that we can implement in order to mitigate the impact, and we are doing. I'm really satisfied with our sourcing people, production people, production planning people, and logistics people. However, it's time to bring supply chain to the next level. We did an extensive survey on the leaders in our industry, and we have been able to recruit a new leader that has just joined the company, and consequently, he will be in charge to set up the new model for Geox in the global supply chain. Really experienced. He managed the global operation of a really important luxury brand in Italy, bigger, more bigger than. Very big compared to Geox, with a luxury maison and also three lines of product, really premium and with big, big volumes. Finally, the numbers. These numbers are based on the assumption that the pandemic will decrease gradually during the first half of next year and the world will be back to a new normal in the second half, and then also touristic flows will recover in 2023. EUR 800 million is the total turnover projected in 2024. It may seem ambitious, and also a CAGR of 11% may seem ambitious. However, our budget this year was EUR 660 million. Why we didn't hit the budget and we just deliver more than EUR 600 million? Because more than 20% on average closure of our network is worth a lot in terms of sales, and also in the fourth quarter, as we disclose in November, EUR 40 million of turnover has been lost due to the shortage of product due to Vietnam problem. Starting from an adjusted starting point, it is clear that the CAGR is needed to high single digit and 800 seems more feasible and achievable. Sorry. It's important, gross margin. I would have been more aggressive on gross margin, but considering the current situation, considering the volatility, and considering the problems in the supply chain, I believe it is feasible that the company is able to deliver more than 100 basis points per year in the next three years as improvement in the gross margin in order to reach the 50.5% that is just 100 basis points more than in 2019. Unfortunately, we will not be in line with the peers, with the premium peers yet. If our project will start working and people, the customer, will recognize our improvement, maybe we will be able to sell more product full price, and consequently, there is potential for an increase also in the gross margin. EBIT, 5%-6% on sales, and EBITDA margin before IFRS 16, 8%-9% on sales. Net financial position, I would say net debt, our guidance was EUR 100 million. Today is a little bit better given the sale of the Serbian plant, so we are in the region of EUR 93 million. We have really a positive fair value of the derivatives. It's worth EUR 13 million in September. Today, it is even more given the trend of U.S. dollars. There is the risk that we will present really a better net financial position according to financial principle, accounting principle. However, net debt should be in the region of EUR 90-95 million, so better than our expectation. Net sales, EUR 800 million, so more or less the same level of 2019, but really with a different mix. We are growing online. We are growing digital. From 17% in 2019 to 29% in 2024. Still below the guidance of the big advisors like Bain & Company or Boston Consulting and so on. They assume really even a higher growth and consequently they put their estimation in the region of 32%-33%. We will see. There is, let's say, room for a sort of contingency. Eventually, we may also be a little bit better than EUR 800 million, a little bit more. 71% and 29%, digital with wholesale brick-and-mortar more or less in line with 2019. We are not so aggressive on brick-and-mortar. For sure, we are more aggressive in our growth on those online, 27% on 2019. As you can see, just a small increase of 6%, so really below market trends in wholesale web. Why? Because as Giulio said, we are really paying attention to price integrity, strong partnership. We will cut unpleasant, let's say, player, especially on Amazon and on other big marketplaces, that do not follow our guidelines regarding prices. We are not interested in doing business with these kind of players, small players. We are interested in big alliances with big players, Zalando, Amazon and so on, marketplace and so on. By product, ready-to-wear will grow a little bit more than shoes, 12%. Leather goods accessories may be an upside for footwear because usually leather goods accessories are included in footwear. By channel, wholesale, more or less the same story, so an increase in the percentage of online, so 35% in 2024 and 65% on brick-and-mortar. Franchising is forecasted at EUR 65 million, far below 2019. This is due to the rationalization that we implemented. In any case, you see that the CAGR from 2021 to 2024 is higher than the average because franchising is going to benefit from some new openings. New openings in a different way we call out-of-deal. It is really a wholesale-like franchising, especially in Eastern Europe and in Russia, where we believe that our partners know the market better than us. We leave free opportunity to buy, Skechers-like, I would say. Consequently, they have no right of returns and no guaranteed margin. The percentage in this wholesale-like model was 31% in 2019, is growing to 47% in 2024, and this means a reduction in the level of risk for Geox. DOS, there is an important shift. EUR 70 million of growth in the online sales, EUR 75 million of decrease in the brick-and-mortar, EUR 80 million due to the perimeter, and EUR 5 million due to positive due to the performance. We have really an important digital strategy. A quick glance to the store network. More or less, you see 783 stores in 2021 today. At the end of the business plan, 761. More or less the same number, but dynamics inside the subchannels are really different. We are going to additional optimized network in Italy and Europe, 70 stores, with the shutdown of 70 stores, and we are growing in franchising in Eastern Europe and in the rest of the world under distribution agreement. By region, we are not going to change the footprint. 70% was Italy and Europe in 2019, 70% is Italy and Europe in 2024. It means that all the region are assumed to grow more or less at the same path. Maybe some differences regarding the starting point and the size. Gross margin. Today, the forecast 2021 is we confirm the 300 basis points of improvement. We believe to be able to deliver more than 100 basis points per year of improvement and consequently to reach the 50.5%. I'm really aggressive on the cost evolution, on the OpEx ratio on sales. Why? Because we have already achieved this kind of results. For sure, in 2024, our OpEx may be 40.7% on sales. Really, we are delivering an increase in the EBITDA, 100 basis points for the gross margin, 600 basis points for the efficiency and cost management and the rationalization that will finance at least 200 basis points of increase in marketing spending. That has seen 8-9% before EBITDA, before IFRS 16, it's important to underline, and EBIT in the region of 5%-6%. We invested a lot according to our best-of-breed strategy. We identify in the market the partners and then we invest with them, Salesforce, Adyen, Oracle, ChannelAdvisor, and so on. We will keep investing. The plan is EUR 70 million-EUR 80 million in 3 years, 35% on IT in order to enhance additionally our digital platforms. We have seen digital B2B, a new way to reduce the cost to serve of wholesale using digital tools. We will invest in the network. At the end, 80% of our store will have the new concept, the X-Store, and the remaining 30% on all the other investment. As a matter of fact, this is not a capital-intensive industry. We will keep a strict control on working capital. Our ambition is to stay in the bracket of 21%-33% on sales, and consequently, all in all, funds from operation should be in the region of EUR 150 million, paying EUR 70-80 million of CapEx means EUR 70-80 million of free cash flow, and consequently, the net debt at the end of the plan should be in the region of, let's say, 20-30 million net debt versus bank. Bene. We are. I'm done. We are ready to open the Q&A session. I'm going to invite the team on the stage in order to answer eventually to qualitative question. We will take first the question from the audience here in the studios and then also from people connected via streaming. For sure, waiting for the chairs in the stage. For sure, what about new lockdown? We hope that our strategy is to be more and more digital may mitigate eventually the impact. The other positive, I would say, thing is that our business is concentrated in the most-vaccinated countries. We really hope that eventually new lockdown will have a lower impact on our industry. Supply chain flexibility, nearshoring, investment in the end-to-end process to mitigate the risk means advanced planning, advanced costing. It is necessary to be very prudent in moving the footprint because some kinds of shoes can be only produced in Far East. If you move the production, in any case, the company will experience problems in having the raw material, like the automotive, it is clear. It's really important to monitor day by day all that is happening. What about inflation costs? We will manage prices. For sure the increase will not be higher than 10%. In our opinion, our customer is not ready to, let's say, to receive big increase for the same product. We did a test, spring/summer 2022. The average increase has been in the region of 4%-5%. A good result. The order campaign in wholesale is up 25%. This give us confidence. Fall/winter 2022, we are going to increase prices 8%. This is an important way to manage input cost pressures, and we will also try to reduce markdown in order to be able to deliver the more than 100 basis points that we have disclosed today. The team I have just presented, Francesco Garello, Roberto Lobetti Bodoni. Forbes America included Roberto in the 50 most promising, I would say, marketing directors worldwide. Diego Porro, extensive experience in our industry. Burberry, head of Hugo Boss division of shoes and leather goods, and Zegna, and Philippe Model, and I stop. Diego Peter, sorry. Peter Salvagni spent his career first in Nike and then he has been one of the players in the revamping of Woolrich, starting from Italy and then Europe and then worldwide. Really strong experience in outerwear. Giulio Salvucci, one of the early, let's say, protagonists of YOOX story. Plenty of brand, plenty of site onboarded in YOOX, and then he moved to, company in our industry, and in 2018 he joined Geox. Massimo Manenti, Foot Locker, Desigual, the head of Polo Ralph Lauren in Europe, in EMEA, really strong skills in retail. Monica Guidolin, she has a really an extensive knowledge of Europe, of all the key accounts in Europe. She has been responsible for wholesale development of many brands, so she's really, I'm joking, the Dun & Bradstreet of Bradstreet regarding the distribution in Europe. Alessandro Zamuner, Diesel, Coach, Safilo with many, as a commercial responsible of the commercial policy of many brands and also of the success of Dior in Safilo. For sure a team that has delivered the result, that speak English better than me, but for sure that will work better than me for the division they are responsible for. The last but not least, Stefano Orsi from Armani. [Non-English content]. He's not here on the stage because he just joined the company. Let's start with the Q&A session. Okay, thank you. Oriana Cardani, Intesa Sanpaolo. The first question is regarding the leather goods collection. I was wondering if you can elaborate more regarding the pricing position, and also what is your expectation regarding this business, new line of business, and the evolution for the three-year business plan. Regarding numbers, they are not included. It is a potential upside because we just started the project. We are really confident. Please, Diego. Sorry, I understood the first question in terms of price positioning. The advantage is that what we want to do is to be consistent with the Geox price positioning. As you know, leather goods typically is around 70% more expensive than shoes. We will be staying below EUR 200. From, let's say, starting from EUR 99 to around EUR 200, an average price point of EUR 150. It's an amazing great value for money. Also consider the competition, because if we look at players like Furla that have got now an international you know brand awareness, we are talking about a business size of around EUR 500 million. Their prices is EUR 400, EUR 350 euros. The same for Michael Kors. If you look at the lower ones that we can still consider brands, like the Italian Gianni Chiarini, et cetera, they are all above 200. Being below 200, it's a very aggressive price point, but the value for money is absolutely outstanding. I didn't get the second question, sorry. No, I replied, so. All right. The second question I've got is regarding the dividend policy. It seems in your business plan, three-year business plan, that it is not considered any dividend policy. So, may we assume that you can come back to dividend distribution since 2024 onwards? Thank you. Yes. Let's say that today the volatility and the uncertainty is quite important, so we are really prudent and we are doing whatever it takes to maintain the financial stability of the company. However, once the pandemic will stabilize the market, we'll be back. I don't see. Let's say, we don't see any problem in distribution, at least the most of the free cash flow. Good evening. Francesco Brilli from Intermonte. Just a quick one on financial targets. If you can provide some additional color on the phasing from the next 2 to 3 years until 2024, of the targets on revenues and profitability, and if the CapEx plan is phased and even the split between years or upfront or backloaded. CapEx, let's assume EUR 25 million per year on average. Sorry, I didn't catch the first one. Just give me the start. The first question. Yes. The phasing in terms of Yes, the phasing. Sure. We are climbing EUR 700 million in 2022, and our target is to reach break even at an EBIT level. The path to 800 in 2023, and to be able to overcome EUR 800 million in 2024. In 2023, our target, main target is to be able to hit the EUR 50 million EBITDA before IFRS. Thank you. [Non-English content]. Hello, Paola Carboni of Equita. I have two questions. The first one is on the women segment. You seem to be very committed in this respect, with ambitious target. I'm wondering if you can talk us about any action you are putting in place from the point of view of the product, of the collection, if there is any new appointment in the design team, for example, or any style you want to push or you want to apply. So just to have a bit more of color on the product. Secondly, probably I've heard that you have talked about CapEx for a new store format. So I don't know if I'm wrong. In any case, the question is, if you have a new store format to roll out, what could be the time span, and if you have any evidence already on how such a new store format is performing, what advantages, what upside is it providing? Thank you. Thank you, Paola. You are right. I said new store concept, it is the X-Store, but I still consider new because just a little bit more than 50% of the store have been renovated in this direction. We have a strong commitment to reach 80% in the next three years. For sure, once we are going to, let's say, renew the stores, we are seeing improvement in the like-for-like. Next May or June, we are going to open the new flagship in Vittorio Emanuele, and there, you will be able to see also some fine-tuning of the format in order to be more in line with the new role of our stores. A hub for omni-channel services in order to attract traffic inside of the store. Please, Diego. Yeah. With regards to the opportunity of ladies, in particular in shoes, we first of all, from an organizational standpoint, have appointed a new head of design that's got an amazing experience from Chanel to Tod's to Bally, and we are working now on the development of spring/summer 2023. We have seen the proto one. It looks outstanding, and it's really phenomenal. That is from an organizational standpoint. From a product standpoint, what we are working on is not only the upgrading of the sneakers in terms of really taste, color combination, materials that is going to be definitely more sophisticated and with a very right balance between you know comfort but really upgraded style. Also on, let's say, the heel shoes or low heel shoes, we are working on a new technology. In my presentation, I talk about the manager mom or the contemporary woman looking for a shoe that is still sexy but also very comfortable. There is a new technology that we will be launching in spring/summer 2023, where we will be accomplishing really the super comfort with something that is really looking nice and is going to be very unique. We are going to be again launching a newness something that is unprecedented in terms of technology, so we are very confident in this area. [Non-English content], Diego. Still about that, do you envisage also maybe any collaboration with, other brands or other famous designers? I don't know. No, no, for sure, we are thinking to collaboration. As you have seen, we are at the same table of Disney, of Nintendo, of the Pokémon company, of Marvel next year for the sixtieth anniversary of Spider-Man in kids, where we are really trying to maintain and to enhance our leadership in the market. As far as adult is concerned, we have some projects on the table that today is a little bit early to disclose. [Non-English content]. Marco Baccaglio from Kepler Cheuvreux. I would like, if it's possible for you to come back on the markdowns and the wholesale sector, and so to clarify what is your strategy on these big wholesale clients for you, which are very visible in the market and which are applying, apparently, maybe I'm wrong looking at them, but quite high markdowns on your products. The big elephant in the room is Amazon. What, how much is about your sales? Do you see that markdowns in your wholesale in general are higher than the one in your retail? What could be the weight of this kind of clients at the end of the plan? There are two aspects. The first one is the markdown we grant to our network in terms of commercial conditions. It is clear that if they are willing to accept increasing in prices, we can, let's say, maintain the commercial conditions. In case, according to some specific customers and according to some specific distribution, they are not willing to. They do not consider feasible to increase the retail price and consequently to maintain their margin, we are sharing the opportunity to maintain the level of retail prices of our product, notwithstanding some pressure on the cost, so that we can share, let's say, the loss of margin in mass market distribution. This is the... As per the discounts of our wholesale, in my opinion, it was a problem lower than the markdown in our direct chain. This is the reason why you have seen I have simply requested to adopt the same markdown strategy of the competitors and of brands. The result has been 800 basis points of reduction, and there is still room to improve this reduction. The real issue regarding wholesale is online players, but not the online big players, the small reseller. To give an example on Amazon, we are going to cut every reseller on Amazon in exchange of a strong partnership with Amazon, demonstrating that their business and our marketplace on Amazon may drive to Amazon higher margin than the small margin of the small reseller that are really taking advantage of any small quantities of product. Maybe Giulio, you can elaborate a little bit on this. Yeah. When it comes to online strategy, I think we have two different directions. The first one is to reduce the competition, as Livio said. We are going to focus on few selected big accounts and make very solid partnership, and also cutting all the resellers that of course make the competition higher and higher. The second pillar is getting in control of the strategy on most of those platforms by implementing the marketplace business model or e-concession. This part has a strong push in our plan. It's absolutely at the very starting point, but we really believe in the next years will be a relevant pillar for our digital strategy. Hello. Good evening. This is Gianni Piazzoli from Bank Vontobel. A question on digital applications. Is the virtual reality of some importance to you, the development of your products? A and B, then a financial question on the exchange rate that you assumed in your financial plan. Thank you. Virtual reality. I'm really passionate about technology, and we are injecting really a big chunk of technology in all our processes in order to become really speedy paperless to reduce the cost to serve. Virtual reality is something different. I'm not so passionate regarding virtual reality. However, we are for sure adopting some important tools like size recommendation in the internet. We are going to invest also in scan recommendation in order, let's say, to allow people to better understand the right size in order to avoid returns. If we are talking about virtual dress room or other, we don't have at this date a project on the table. I'm lucky. Maybe, Massimo, do you have any idea on this? We are just brainstorming. Today, no real project to invest in virtual dress room and so on. That is correct, Livio. We don't have anything at the moment on the incoming project. But as you mentioned, the virtual reality can be a useful tool in order to optimize the choice for our customers while they're browsing on internet. This will have a positive impact in the reduction of the returns in store or on the web. Let's say still really a concrete approach to exchange rate. Exchange rate is always a big challenge. We took really a clear vision in the last 6 months. We decided to cover 18 months until mid-2023. We are fine with our exchange rate, more than 120 for Spring Summer 2022, for Winter 2022 and Spring Summer 2023, maybe a little bit less than 120. For the time being, we are a little bit lucky, 18 months to see what will happen, and consequently 18 months to take all the necessary action to mitigate eventually an appreciation of the US dollars. [Non-English content]? Shall we open the questions also for people outside the room? Gentlemen, there are no questions registered from the call. To further two questions on the product and on marketing activities. The first one is that should we expect an iconic product for each season going on, like the Spherica or the Amphibiox, for each season, summer and winter? Then I have another question. Well, we will be launching newness every season, but you know, to have something that becomes iconic, it takes time, and it gains iconicity by itself. We will definitely launch new technologies and we will be launching the seasonal animations of the current iconic. What I can say is that we have got two very strong projects going, being launched in spring/summer 2023, and most probably they will become new icons. They will gain iconicity by themselves. Okay. On marketing and advertising, is this the approach that you have in the Asia Pacific region with a big and strong testimonial like applicable also in Europe and Western countries, or is something that you have in mind for this part of the world? It's something on the table actually. I can't reveal anything about it. Of course, in Chinese market, we have an average age of our customer, which is much younger. That was a clear Trojan to entering into the social media platform and get immediate engagement with the right target. As you know, we have different age group here in Italy. Of course, we should be a different kind of ambassador, a compelling and relevant person to engage our audience with. Thank you. Probably I can add just an additional question on the warehouses. You mentioned that the Italian one is the one serving the online channel in the 27 countries, if I'm not wrong. Are the other ones able to fulfill the orders in the same way, or you need to bring them up to speed for these capabilities or are the CapEx aimed at that? We are fine with our distribution centers. I mean that we manage directly e-commerce in Italy and Europe. We manage directly in U.S. and Canada, and the distribution centers are able to do the door-to-door fulfillment. Now we are going to open next year the e-commerce platform in Russia and also that logistics center is able to do fulfillment. In Asia Pacific, I mean China, it's a different model. We have many sites on Tmall, JD, vip.com, and also on the other players. It's different because there is a layer in the middle that do the fulfillment of the logistics and of the customer service, because it is clear that there are issues regarding languages and practices specific for the market. All the brands are using this kind of external warehouses fulfillment model. There is no issue regarding volumes and scale. Okay. If there are no more questions, I have tried to write just a simple wrap-up in order to be really strict. Today at Geox, we want, first and foremost, to exploit a brand opportunity. We want to return to grow and reach more and more people conquering new targets in different markets and different market segments according to a data-driven marketing model. We can do it by improving our distribution strategy, optimizing channel management and choosing the right points of sale to position our brand as an everyday premium lifestyle brand, and not just a shoe brand. A brand that conveys quality, certainly attentive to the fashion trend, yet detached from its rules and codes. A strongly contemporary brand, which for this reason does not aim to identify in a gender, but to address openly and indistinctly to people of all sexes, age. In the reality, we are not interested today in teens, Gen Z, and the first part of the millennial. Our focus is 0-1 year, first steps, 3-8 years, kids, and then 35-50% of the millennial, the Gen X for sure, and also the boomers. A brand that nevertheless must keep its own image, a family feeling strongly recognizable in its product and in its communication. A story that we want to evolve from the functionality of the technology and of the product, being the expression of the values of the brand. Brand with the Italian DNA that will be able to strategically enhance. A brand that has heart, earth, and technology in its name, and that therefore must be led by a mindset made of respect and care for the environment, society and people. Our purpose is we do exist to improve people's wellbeing on the move. Thank you very much for your attention. Feel free to contact myself, Simone Maggi, our IR, Investor Relations Manager, and eventually we will address your question to the leadership team here in the headquarters. Thank you very much for your time. Keep in touch.