185000000 IT Holding Finance SA

Our Company
KEY INFORMATION
We are Europe’s leading producer and distributor of branded apparel and accessories targeted at the young lines market
segment of the apparel and accessories market. We also produce and distribute branded apparel and accessories
targeted at the luxury market segment. Our products are marketed and sold under a number of internationally
recognized brands, which we either own or which are licensed exclusively to us by third parties, including luxury
brands such as Ferré and Malo (which we own), and young lines brands D&G Dolce & Gabbana, Versus, Versace
Jeans Couture, Just Cavalli and C’N’C Costume National (which we license from third parties) and Extè (which we
own). From 1992 to 2004, our net revenues grew by a compound annual growth rate of over 18%. For 2004, we
generated consolidated net revenues and EBITDA of €709.9 million and €106.0 million, respectively, and recorded a
net loss of €12.6 million. See “Operating and Financial Review and Prospects”.
Our business requires us to manage a complicated array of activities, including the design, sample production,
showroom sale, raw material procurement, manufacturing, and distribution of our branded apparel and accessories
products. Our production process revolves around the annual production of both Spring-Summer and Fall-Winter
collections for each of our brands. Each year, we source raw materials from over 1,000 suppliers, directly manage the
production of prototypes and samples, and co-ordinate the manufacturing by third parties of over 8 million items of
apparel and accessories. We then distribute these items to over 4,000 wholesale customers worldwide through our
global distribution network. Our customers are comprised primarily of independent multi-brand boutiques but also
include well-known department stores, international importer-distributors and select duty-free shops. We also
distribute a smaller percentage of our apparel and accessories through franchised stores owned and operated by
selected third parties as well as stores owned and directly operated by us.
Since our formation in 1982, we have grown our business by developing a global distribution system, creating a
sophisticated and flexible production platform and broadening our product range and portfolio of brands. The most
recent brand we acquired was Ferré, which we purchased in 2002 and subsequently relaunched in connection with a
comprehensive repositioning program. We were one of the first producers of apparel and accessories to develop the
young lines market segment aimed at younger consumers — a segment that we believe is less exposed to fluctuations
in demand than other market segments of the fashion industry.
Until recently we also produced, sold and distributed branded eyewear and fragrances. We disposed of our fragrance
business in March 2004 and our eyewear business in October 2004 in connection with our strategic refocusing
program.
IT Holding S.p.A. was incorporated in 1982 in the Republic of Italy as a joint stock company and has a duration until
December 31, 2100 unless the shareholders pass a resolution for its extension. The registered office of IT Holding
S.p.A. is located at Zona Industriale, Pettoranello di Molise (IS), Italy whereas the principal executive offices of IT
Holding S.p.A. are located at Corso Monforte 30, 20122 Milan, Italy (telephone: +39 02 763 0391).
See “Description of Business” for a more comprehensive discussion of our business operations.
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