Earnings release
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PRESS RELEASE The Board of Directors of Salvatore Ferragamo S.p.A. approves the Half Year Financial Report as of 30 June 2026 Continued Progress in Direct-to-Consumer Business Through Ongoing Strategic Execution • Revenues: Q2 2026 at € 259 million (+2.4% vs. € 253 million in Q2 2025, +4.6% at constant exchange rates1), with DTC2 +6.6% at constant exchange rates1 vs. Q2 2025 with all regions growing; H1 2026 at € 468 million (-1.3% vs. € 474 million in H1 2025, +1.9% at constant exchange rates1), with DTC2 +6.1% at constant exchange rates1 vs. H1 2025 • Gross Profit: H1 2026 at € 324 million (vs. € 321 million in H1 2025), with margin expanding to 69.2% margin (vs. 67.7% in H1 2025), reflecting an improved full-price mix • Gross Operating Profit (EBITDA3): H1 2026 at € 90 million (vs. € 73 million in H1 2025), with margin improving to 19.2% margin (vs. 15.3% in H1 2025), supported by efficiency initiatives and disciplined cost control • Operating Profit (EBIT): H1 2026 at € 21 million (vs. negative € 3 million adjusted4 in H1 2025) • Net Profit: H1 2026 at € 1.5 million (vs. negative € 16 million adjusted4 in H1 2025) • Net Inventory: at € 277 million (-10.3% vs. € 309 million at June 30, 2025) • Net Financial Position5: positive for € 125 million (vs. € 119 million positive at June 30, 2025) Florence, 03 August 2026 – The Board of Directors of Salvatore Ferragamo S.p.A. (EXM: SFER), parent company of the Salvatore Ferragamo Group, in a meeting chaired by Leonardo Ferragamo, examined and approved the Half Year Financial Report as of June 30, 2026, drafted according to IAS/IFRS international accounting principles (Limited Audit).
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During the second quarter of 2026, the Group continued to execute its strategic initiatives, delivering further progress in the Direct-to-Consumer (DTC) business. DTC Net Sales increased by 6.6% at constant exchange rates, mainly supported by the performance of the primary channel, an improved full-price mix, and ongoing gains in conversion rate, units per transaction and average ticket. Twelve months into the implementation of the strategy, Ferragamo remains committed to reinforcing the foundations of the brand. Product effectiveness, retail excellence and a targeted communication strategy continue to be at the core of the Group’s efforts to drive brand desirability, deepen customer engagement and support the quality and sustainability of performance over time. Building on the progress established across recent collections, the Group further refined its product architecture and delivered a series of coherent and targeted communication initiatives, aimed at increasing visibility of key categories and iconic products, while ensuring a consistent expression of the brand across markets and customer touchpoints. At the same time, Ferragamo remained focused on retail ex ecution, store productivity and quality of its distribution footprint , maintaining a disciplined and selective approach to the Wholesale channel , consistent with the brand’s positioning. Operational discipline remained a key area of focus and contributed to the achievement of a positive EBIT in the first half of the year, further supported by favourable channel and mix dynamics. Over the recent months, the Group has substantially strengthened its senior management team, creating a robust organizational platform to support long-term strategy execution. In parallel, Ferragamo continues to advance several core business processes, including the re-platforming of its e-commerce infrastructure, the refinement of merchandising allocation criteria and the identification of targeted opportunities to strengthen performance across markets, with particular attention to Asia. Looking ahead, while visibility on the macroeconomic environment remains limited, the Group is increasingly focused on the medium to long -term development of the business. The progress achieved over the past twelve months provides increasing confidence in the strategic direction undertaken , as Ferragamo continues to strengthen the capabilities, processes and organizational foundations required to deliver sustainable growth and value creation over time.
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Notes to the Income Statement for H1 2026 Consolidated Revenue figures In Q2 2026 Consolidated Revenues amounted to € 259 million, up 4.6% at constant exchange rates1 and up 2.4% at current exchange rates vs. Q2 2025. DTC2 registered a 6.6% increase at constant exchange rates1 in the quarter, while the Wholesale channel reported results in line with last year. Consolidated Revenues for H1 2026 amounted to € 468 million up 1.9% at constant exchange rates 1 and down 1.3% at current exchange rates vs. H1 2025, with the positive DTC2 performance, up 6.1% at constant exchange rates1, penalized by the negative trend of the Wholesale channel. Net Sales by distribution channel In Q2 2026 the DTC2 channel posted consolidated Net Sales up 6.6% at constant exchange rates1 (+4.8% at current exchange rates) vs. the same period of last year, with all regions posting growth at constant exchange rates1, mainly driven by the primary channel. Also, the online channel continued its positive trend, reporting a double-digit growth vs. Q2 2025, with higher traffic, order number and average value on our website ferragamo.com. In H1 2026 the DTC2 channel was up 6.1% at constant exchange rates1 (+1.8% at current exchange rates) vs. H1 2025, with positive trends at constant exchange rates1 across all the regions, except Japan. In Q2 2026 the Wholesale channel registered Net Sales in line (+0.2%) at constant exchange rates1 and down 1.0% at current exchange rates vs. Q 2 2025, reflecting a strengthened focus on selective distribution and strategic key accounts, consistent with the brand's positioning. In H1 2026 the Wholesale channel was down 11.2% at constant exchange rates 1 and -11.6% at current exchange rates vs. H1 2025. Net Sales by geographical area The DTC2 channel in EMEA in Q2 2026 posted Net Sales up high-single digit, driven by t he performance of the primary channel, which recorded double -digit increases in both conversion rate and average ticket. Wholesale was down double-digit. Total Net Sales in Q2 2026 were down 1.3% at constant exchange rates1 (-1.6% at current exchange rates) vs. Q2 2025. In H1 2026 Net Sales in EMEA decreased 8.6% at constant exchange rates1 (-9.0% at current exchange rates) vs. H1 2025, with the DTC2 positive performance offset by the double-digit negative Wholesale result.
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The DTC2 channel in North America in Q2 2026 was up double-digit at constant exchange rates1, supported by the continued momentum in the primary channel and full- price sales . Also, the Wholesale channel recorded Net Sales up double-digit vs. the same period of last year. Total Net Sales in Q2 2026 increased 13.0% at constant exchange rates2 (+11.5% at current exchange rates) vs. Q2 2025. In H1 2026 Net Sales in North America increased 15.4% at constant exchange rates 1 (+9.7% at current exchange rates) vs. H1 2025, with both DTC2 and Wholesale up double-digit at constant exchange rates2. Both the DTC2 and Wholesale channel in Central and South America in Q2 2026 registered sales above the same period of last year, driving Net Sales up 6.5% at constant exchange rates1 (+15.3% at current exchange rates) vs. Q2 2025. In H1 2026 Net Sales in Central and South America were up 6.8% at constant exchange rates 1 (+11.8% at current exchange rates) vs. H1 2025, driven by the primary DTC2 channel. DTC 2 in Asia Pacific in Q2 2026 posted a positive performance at constant exchange rates 1. Total Net Sales decreased 0.6% at constant exchange rates1 (-0.9% at current exchange rates) vs. Q2 2025, penalized by the negative performance of the Wholesale channel. In H1 2026 Net Sales in Asia Pacific decreased 3.0% at constant exchange rates1 (-6.4% at current exchange rates) vs. H1 2025, penalized by the double-digit negative performance of the Wholesale business. The Japanese market in Q2 2026 registered an increase in Net Sales of 2.8% at constant exchange rates1 (- 9.1% at current exchange rates) vs. Q2 2025, driven by the positive performance of the primary DTC2 channel. In H1 2026 Net Sales in Japan decreased 1.0% at constant exchange rates1 (-13.0% at current exchange rates) vs. H1 2025. Gross Profit In H1 2026 Gross Profit amounted to € 324 million, vs. € 321 million in H1 2025. Its incidence on Revenues was 69.2% vs. 67.7% in H1 2025, reflecting an improved full-price mix and continued trading-up trends. Operating Costs In H1 2026 Net Operating Costs were down 17.0% vs. H1 2025 and down 6.4% (-3.6% at constant exchange rates) vs. H 1 2025 adjusted (excluding the Impairment Test impact ), reflecting ongoing processes optimization, organizational streamlining and disciplined cost management.
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Gross Operating Profit (EBITDA3) In H1 2026 Gross Operating Profit (EBITDA3) reached € 90 million vs. € 73 million H1 2025. Its incidence on Revenues was 19.2% vs. 15.3% in H1 2025. Operating Profit (EBIT) In H1 2026 Operating Profit (EBIT) reached € 21 million vs. negative € 3 million adjusted4 (excluding the € 41 million negative cost component of the Impairment Test) Operating Profit in H1 2025. Profit before taxes In H1 2026 Profit before taxes was positive for € 6 million vs. negative € 24 million adjusted (excluding the Impairment Test impact) in H1 2025. Net Profit for the Period In H1 2026 Net Profit, including the Minority Interest, was positive for € 1.5 million vs. negative € 16 million adjusted 4 (excluding the Impairment Test impact) in H1 2025. Notes to the Consolidated Balance Sheet for H1 2026 Net Working Capital6 Net Working Capital as of June 30, 2026, was down 9.8% to € 220 million, from € 244 million as of June 30, 2025. In particular, Inventories were down 10.3%. Investments (CAPEX) As of June 30, 2026, Investments (CAPEX) were € 18 million vs. € 16 million in H1 2025 , mainly for the renovation of the retail network.
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Net Financial Position Net Financial Position adjusted5 at June 30, 2026, was positive for € 125 million, vs. € 119 million positive at June 30, 2025. Including IFRS16 effect, Net Financial Position at June 30, 2026, was negative for € 421 million, vs. € 492 million negative at June 30, 2025. **** Notes to the press release 1 Revenues/Net Sales at “constant exchange rates” are calculated by applying to the Revenue/ Net Sales of the period 2025, not including the “hedging effect”, the average exchange rates of the same period 2026. 2 In our distribution model, the Direct To Consumer (DTC) channel consists of single branded stores managed directly by us (DOS), as well as a directly managed online boutique and other e-commerce platforms through which we sell directly to our customers. Primary DTC consists of directly operated monobrand primary stores and e -commerce platforms of direct to customers online sales, while secondary DTC consists of directly operated monobrand outlet stores. 3 We define EBITDA as operating profit before amortization and depreciation and write -downs of tangible/intangible assets, investment properties and Right of use assets. EBITDA is an important managerial indicator for measuring the Group’s performance. As EBITDA is not an indicator defined by the accounting principles used by our Group, our method of calculating EBITDA may not be strictly comparable to that used by other companies. 4 Adjusted Operating profit(loss) /Net profit (loss) is Operating profit(loss)/Net profit (loss) before Write - downs of tangible assets, intangible assets, investment properties and right -of-use assets, resulting from impairment tests conducted in accordance with IAS 36 and IAS 40. 5 Net Financial Position is referring to Adjusted Net Financial Position: not including the IFRS16 effect. The net Financial Position calculated as the sum of Cash and cash equivalents and Other current financial assets, including the positive fair value of derivatives (non -hedge component) net of Current and non -current interest-bearing loans and borrowings plus Current and non-current Lease Liabilities and Other current and non-current financial liabilities including the negative fair value of derivatives ( non-hedge component). Net Financial Position Adjusted is the Net Financial Position excluding Current and non-current Lease Liabilities.
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6 Net working capital is calculated (in accordance with CESR Recommendation 05-054/b of February 10, 2005) as inventories , right of return assets and trade receivables net of trade payables and r efund liabilities, excluding other current assets and liabilities and other financial assets and liabilities. As net working capital is not an indicator defined by the accounting principles used by our Group, our method of calculating net working capital may not be strictly comparable to that used by other companies. **** The manager charged to prepare the corporate accounting documents, Paolo La Morgia, pursuant to article 154-bis, paragraph 2, of Legislative Decree no. 58/1998 (Consolidated Financial Law), hereby declares that the information contained in this Press Release faithfully represents the content of documents, financial books and accounting records. Furthermore, in addition to the conventional financial indicators required by IFRS, this Press Release includes some alternative performance indicators (such as EBITDA, for example) in order to allow for a better assessment of the performance of the economic and financial management. These indicators have been calculated according to the usual market practices. This document may contain forecasts, relating to future events and operating results, which by their very nature are uncertain, in that they depend on future events and developments that cannot be predicted with certainty. Actual results may therefore differ with those forecasted, due to a variety of factors. **** The Half Year Financial Report as of 30 June 2026, approved by the Board of Directors on August 3, 2026, will be available to anyone requesting it at the headquarters of the Company in Florence, Via Tornabuoni n. 2, on the authorized web-storage system eMarket STORAGE www.emarketstorage.com, and will also be accessible on the Salvatore Ferragamo Group's website http://group.ferragamo.com in the section “Investor Relations/Financial Documents”, in compliance with the law. **** The H1 2026 Results will be illustrated today, 3 August 2026, at 6:00 PM (CET) in a conference call with the financial community. The presentation will be available on the Company's website http://group.ferragamo.com in the “Investor Relations/Presentations” section.
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Salvatore Ferragamo S.p.A. Salvatore Ferragamo S.p.A. is the parent Company of the Salvatore Ferragamo Group, one of the leaders in the luxury industry, and whose origins date back to 1927. Salvatore Ferragamo is renowned for the creation, production, and worldwide distribution of luxury collections of shoes, leather goods, apparel, silk products and other accessories for men and women, including also eyewear, watches and fragrances under license. Embedding the spirit of its Founder, Ferragamo reinterprets its heritage with creativity, innovation and sustainable thinking. Uniqueness and exclusivity, along with the blend of style and exquisite 'Made in Italy' savoir-faire, are the hallmarks of all Ferragamo's products. **** For further information: Salvatore Ferragamo S.p.A. Paola Pecciarini Group Investor Relations Tel. (+39) 055 3562230 investor.relations@ferragamo.com Image Building Giuliana Paoletti, Mara Baldessari Media Relations Tel. (+39) 02 89011300 ferragamo@imagebuilding.it This Press Release is also available on the website http://group.ferragamo.com, in the section “Investor Relations/Financial Press Releases”. ****
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In the following pages, a more detailed analysis of Revenues, the consolidated income statement, the summary of statement of consolidated financial position, the net consolidated financial position, and the consolidated cash flow statement of the Salvatore Ferragamo Group as of 30 June 2026. Revenue by distribution channel as of 30 June 2026 (*) In our distribution model, the Direct To Consumer (DTC) channel consists of single branded stores managed directly by us (DOS), as well as a directly managed online boutique and other e-commerce platforms through which we sell directly to our customers. Half-year period ended 30 June (In thousands of Euro) 2026 % on Revenue 2025 % on Revenue % Change at constant exchange rate % Change DTC* 363,295 77.7% 357,008 75.4% 1.8% 6.1% Wholesale 93,187 19.9% 105,415 22.2% (11.6%) (11.2%) Net sales 456,482 97.6% 462,423 97.6% (1.3%) 2.1% Cash flow hedging effect 1,745 0.4% 1,471 0.3% 18.6% na Licenses and services 8,324 1.7% 8,147 1.7% 2.2% 2.2% Rental income investment properties 1,254 0.3% 1,899 0.4% (34.0%) (29.5%) Revenues 467,805 100.0% 473,940 100.0% (1.3%) 1.9%
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Net sales by geographic area as of 30 June 2026 Half-year period ended 30 June (In thousands of Euro) 2026 % on Net sales 2025 % on Net sales % Change at constant exchange rate % Change Europe 106,047 23.2% 116,560 25.2% (9.0%) (8.6%) North America 154,967 34.0% 141,283 30.6% 9.7% 15.4% Japan 34,681 7.6% 39,852 8.6% (13.0%) (1.0%) Asia Pacific 120,231 26.3% 128,450 27.8% (6.4%) (3.0%) Central and South America 40,556 8.9% 36,278 7.8% 11.8% 6.8% Net sales 456,482 100.0% 462,423 100.0% (1.3%) 2.1%
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Net sales by product category as of 30 June 2026 Half-year period ended 30 June (In thousands of Euro) 2026 % on Net sales 2025 % on Net sales % Change at constant exchange rate % Change Footwear 207,182 45.4% 201,779 43.6% 2.7% 5.7% Leather goods 186,040 40.8% 199,140 43.1% (6.6%) (3.1%) Apparel 27,678 6.0% 27,180 5.9% 1.8% 5.6% Silk & Other 35,582 7.8% 34,324 7.4% 3.7% 7.8% Net sales 456,482 100.0% 462,423 100.0% (1.3%) 2.1%
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Consolidated results for Salvatore Ferragamo Group as of 30 June 2026 Consolidated income statement as of 30 June 2026 (*) EBITDA is operating profit before amortization and depreciation and write -downs of tangible/intangible assets, investment properties and Right of use assets. EBITDA so defined is a parameter used by the management to monitor and assess the operating performance and is not identified as an accounting measurement under IFRS and, therefore, must not be considered as an alternative measurement to assess Group performance. Since the composition of EBITDA is not regulated by reference accounting standards, the determination criterion applied by the Group may differ from that adopted by others and therefore may not be c omparable. (**) Adjusted operating profit/(loss): it is Operating Profit/(Loss) before Write-downs of tangible/intangible assets, investment properties and right-of-use assets, resulting from impairment tests conducted in accordance with IAS 36 and IAS 40. Half-year period ended 30 June (In thousands of Euro) 2026 % on Revenue 2025 % on Revenue % Change Revenue from contracts with customers 466,551 99.7% 472,041 99.6% (1.2%) Rental income investment properties 1,254 0.3% 1,899 0.4% (34.0%) Revenues 467,805 100.0% 473,940 100.0% (1.3%) Cost of goods sold (143,933) (30.8%) (153,097) (32.3%) (6.0%) Gross profit 323,872 69.2% 320,843 67.7% 0.9% Style, product development and logistics costs (21,208) (4.5%) (22,181) (4.7%) (4.4%) Sales & distribution costs (187,370) (40.1%) (232,853) (49.1%) (19.5%) Marketing & communication costs (36,864) (7.9%) (37,974) (8.0%) (2.9%) General and administrative costs (59,296) (12.7%) (65,222) (13.8%) (9.1%) Other operating costs (10,820) (2.3%) (12,745) (2.7%) (15.1%) Other income 12,605 2.7% 5,988 1.3% 110.5% Total operating costs (net of other income) (302,953) (64.8%) (364,987) (77.0%) (17.0%) Operating profit/(loss) 20,919 4.5% (44,144) (9.3%) na Net financial charges (14,595) (3.1%) (21,007) (4.4%) (30.5%) Profit before taxes 6,324 1.4% (65,151) (13.7%) na Income taxes (4,860) (1.0%) 7,669 1.6% na Net profit/(loss) for the Period 1,464 0.3% (57,482) (12.1%) na Net profit/(loss) - Group 1,420 0.3% (57,708) (12.2%) na Net profit/(loss) - minority interests 44 0.0% 226 0.0% (80.5%) EBITDA (*) 89,599 19.2% 72,521 15.3% 23.5% Assets write-off resulting from the impairment tests - - 41,236 8.7% (100.0%) Adjusted Operating profit (**) 20.919 4.5% (2,908) (0.6%) na
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Summary of consolidated statement of financial position as of 30 June 2026 (1) The Net financial debt/(surplus) is calculated as the sum of Current and non current Interest-bearing loans and borrowings plus Current and non current Lease Liabilities and Other current and non current financial liabilities including the negative fair value of derivatives (non- hedge component), net of Cash and cash equivalents and Other current financial assets, including the positive fair value of der ivatives (non-hedge component). (2) The Net financial debt/(surplus) adjusted is calculated as the Net financial debt/(surplus) excluding Current and non current Lease Liabilities. (In thousands of Euro) 30 June 31 December 30 June Var% 06.26 vs 12.25 Var% 06.26 vs 06.25 2026 2025 2025 Property, plant and equipment 182,834 181,755 174,822 0.6% 4.6% Investment property 5,940 5,804 5,802 2.3% 2.4% Right of use assets 429,069 453,506 464,020 (5.4%) (7.5%) Goodwill 6,679 6,679 6,679 - - Intangible assets with definite useful life 24,505 27,325 28,219 (10.3%) (13.2%) Inventories and Right of return assets 277,209 282,074 309,105 (1.7%) (10.3%) Trade receivables 60,508 59,426 75,939 1.8% (20.3%) Trade payables and Refund liabilities (117,816) (133,041) (141,381) (11.4%) (16.7%) Other non current assets/(liabilities), net 115,540 112,192 117,474 3.0% (1.6%) Other current assets/(liabilities), net 23,987 36,099 49,497 (33.6%) (51.5%) Current assets/(liabilities) held for sale, net - 59 59 (100.0%) (100.0%) Net invested capital 1,008,455 1,031,878 1,090,235 (2.3%) (7.5%) Group shareholders’ equity 586,331 591,270 596,787 (0.8%) (1.8%) Minority interests 1,172 1,135 1,177 3.3% (0.4%) Shareholders’ equity (A) 587,503 592,405 597,964 (0.8%) (1.7%) Net financial debt/(surplus) (B) (1) 420,952 439,473 492,271 (4.2%) (14.5%) Total sources of financing (A+B) 1,008,455 1,031,878 1,090,235 (2.3%) (7.5%) Net financial debt/(surplus) (B) 420,952 439,473 492,271 (4.2%) (14.5%) Lease Liabilities (C) 545,493 583,341 611,674 (6.5%) (10.8%) Net financial debt /(surplus) adjusted (B-C) (2) (124,541) (143,868) (119,403) (13.4%) 4.3% Net financial debt /(surplus) adjusted/ Shareholders’ equity (21.2%) (24.3%) (20.0%)
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Consolidated net financial position as of 30 June 2026 (In thousands of Euro) 30 June 31 December 30 June Var 06.26 vs 12.25 Var 06.26 vs 06.25 2026 2025 2025 A. Cash 176.005 181.745 146.213 (5.740) 29.792 B. Cash equivalents 23.725 25.694 9.396 (1.969) 14.329 C. Other current financial assets 32.098 42.047 54.551 (9.949) (22.453) D. Current financial assets (A+B+C) 231.828 249.486 210.160 (17.658) 21.668 E. Current financial debt (including debt instruments) 107.287 105.618 90.757 1.669 16.530 F. Current portion of non current financial debt 117.671 117.758 115.835 (87) 1.836 G. Current financial debt (E+F) 224.958 223.376 206.592 1.582 18.366 H. Current financial debt, net (G-D) (6.870) (26.110) (3.568) 19.240 (3.302) I. Non current financial debt (excluding debt instruments) 427.822 465.583 495.839 (37.761) (68.017) J. Debt instruments - - - - - K. Trade payables and other current debts - - - - - L. Non-current financial debt (I+J+K) 427.822 465.583 495.839 (37.761) (68.017) M. Net financial debt (H+L) 420.952 439.473 492.271 (18.521) (71.319) (In thousands of Euro) 30 June 31 December 30 June Var 06.26 vs 12.25 Var 06.26 vs 06.25 2026 2025 2025 Net financial debt/(surplus) (a) 420,952 439,473 492,271 (18,521) (71,319) Non current lease liabilities 427,822 465,583 495,839 (37,761) (68,017) Current lease liabilities 117,671 117,758 115,835 (87) 1,836 Lease liabilities (b) 545,493 583,341 611,674 (37,848) (66,181) Net financial debt/(surplus) adjusted (a-b) (124,541) (143,868) (119,403) 19,327 (5,138)
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Consolidated statement of cash flows as of 30 June 2026 (*) Net cash provided by (used in) operating activities adjusted is calculated as Net cash provided by (used in) operating activi ties net of the Repayment of lease liabilities (showed in the Net Cash provided by (used in) financing activities). Half-year period ended 30 June (In thousands of Euro) 2026 2025 Net profit/(loss) for the period 1,464 (57,482) Depreciation, amortization and write down of property, plant and equipment, intangible assets, investment properties 21,776 65,422 Depreciation of Right of use assets 46,905 51,243 Income Taxes 4,860 (7,669) Net change in provision for employee benefit plans (398) (171) Loss/(gain) on disposal of tangible, intangible assets and assets held for sale (1,672) 282 Net Interest expenses/income and Interest on lease liabilities 9,648 10,609 Other non cash items (844) (2,926) Net change in net working capital 1,843 (34,571) Net change in other assets and liabilities (4,143) (12,240) Income Taxes paid 948 (10,326) Net Interest expenses/income and Interest on lease liabilities paid (9,784) (10,751) NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 70,603 (8,580) Purchase of tangible assets (15,928) (13,963) Purchase of intangible assets (1,977) (1,909) Proceeds from the sale of tangible, intangible assets and assets held for sale 2,156 12 Net change in other current financial assets 8,859 (674) NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES (6,890) (16,575) Net change in financial payables (1,653) (12,953) Repayment of lease liabilities (63,013) (64,067) Payment of dividends - - NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES - - (64,666) (77,020) NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (953) (102,175) Net increase/(decrease) in cash and cash equivalents 201,739 237,085 Net effect of translation of foreign currencies (953) (102,175) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (5,202) 20,699 195,584 155,609 NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES 70.603 (8.580) Repayment of lease liabilities (63.013) (64.067) NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES ADJUSTED (*) 7.590 (72.647)