Half-year Report

25 August 2016

Jimmy Choo PLC

Half year results for the six months ended 30 June 2016

Growth and Margin Improvement

Jimmy Choo PLC, the British luxury brand specialising in shoes and accessories, today announces its unaudited results for the six months ended 30 June 2016.

Highlights

· Revenue growth of 9.2% at reported currency and 3.8% at constant currency; continued growth ahead of the market despite the difficult operating environment.

· Gross margin expansion and cost control driving Adjusted EBITDA growth of 12.8% and Adjusted EBIT growth of 13.7%, benefitting from operating leverage on fixed costs.

· Reported Operating Profit up 42.6% to £25.3m.

· EBITDA cash conversion8 increased from 70.0% to 84.5%.

· Growth in Asia, with impressive growth in China, and managed repositioning in a difficult USA market.

· Continued digital leadership with strong momentum maintained.

· Global acclaim for new and innovative product ranges as well as for our design team, led by our award winning Creative Director Sandra Choi, in our 20th anniversary year.

· Growth in Men's continues, now representing 8% of revenue.

· Continued Licensing growth demonstrates brand flexibility and versatility.

· Store investment programme concentrated in H1, with six new Directly Operated Stores (DOS) in the period and nine renovations and relocations.

· Good performance in New Concept Stores (now 40% of our DOS estate).

· Strong start to the second half in addition to a positive benefit from a weaker GBP.

· A global business with significant growth potential.

Pierre Denis, CEO of Jimmy Choo PLC, said:

"These results represent an excellent performance in the period, with growth and margin expansion leading to improved earnings, further enhancing the brand's track record of delivery in all market conditions. This is combined with strong underlying cash flow conversion leading to further positive steps on deleveraging. We have made a good start to the second half and we remain optimistic about our prospects both for this year and for our performance in the future."

Peter Harf, Chairman of Jimmy Choo PLC, commented:

"This is an impressive set of results and it is of great credit to Pierre Denis and his talented teams that they have achieved both growth and margin expansion in such challenging market conditions. The prospects for the business in its 20th year have never looked better and we are confident in its growth prospects and the global opportunity for the brand."

The Company will publish an update on trading in November 2016.

Enquiries

1 Constant currency revenue growth is calculated by applying the exchange rates for the half year ended 30 June 2016 to the half year ended 30 June 2015 on a month by month basis and calculating the growth percentage by reference to the total period.

2 Like-for-like ("LFL") sales growth is calculated by taking retail sales in all locations where trading occurred for a full financial year prior to the start of the period being measured and calculating sales growth for those locations at constant currency.

3 Adjusted EBITDA is defined as operating profit for the period adjusted for exceptional costs, loss on disposal of property, plant and equipment and intangible assets, depreciation and amortisation charges and realised and unrealised foreign exchange gains and losses on the revaluation of monetary items.

4 Adjusted EBIT is defined as operating profit for the period adjusted for exceptional costs, share of the result of associates and joint ventures and realised and unrealised foreign exchange gains and losses on the revaluation of monetary items.

5 Adjusted Consolidated Net Income is defined as profit for the period adjusted for exceptional costs, foreign exchange gains and losses on the revaluation of external bank facilities, changes in the fair value of forward foreign exchange contracts used to manage exposure to foreign currency gains and losses arising on external bank facilities and refinancing interest break costs. Tax charged in Adjusted Consolidated Net Income is per the Income Statement, excluding deferred tax.

6 Adjusted EPS is calculated as Adjusted Consolidated Net Income divided by 377,786,469 shares.

7 Adjusted Operating Cash Flow is defined as cash generated from operations adjusted for exceptional costs.

8 EBITDA cash conversion is defined as Adjusted Operating Cash Flow divided by Adjusted EBITDA.

Notes to Editors

Jimmy Choo encompasses a complete luxury accessories brand. Women's shoes remain the core of the product offer, alongside handbags, small leather goods, scarves, sunglasses, eyewear, belts, fragrance and men's shoes. CEO Pierre Denis and Creative Director Sandra Choi together share a vision to create one of the world's most treasured luxury brands. Jimmy Choo has a global store network encompassing more than 140 stores and is present in the most prestigious department and specialty stores worldwide. Jimmy Choo PLC is publicly listed on the London Stock Exchange with the ticker CHOO.

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. Jimmy Choo PLC undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. All persons, wherever located, should consult any additional disclosures that Jimmy Choo PLC may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Jimmy Choo PLC shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.

Operational Review

Our strategy as a British luxury brand specialising in shoes and accessories remains unchanged: continued growth ahead of the market through the development of our collections, continued fashion leadership and expansion of our retail and wholesale channels. We have made good progress on all fronts during the first half of the year.

Our dedication to design and product quality ensures that we continue to create beautiful and innovative collections which appeal to existing and new clients around the world.

Product Collections

Shoes remain the core of the business, accounting for 76% of revenue. Growth has been driven by the launch of key new styles in the seasonal collections as well as by the launch of a Memento collection as part of the 20th Anniversary celebrations for the brand. In Choo 24:7 we introduced a number of new and innovative products, with shapes and styles which have had a significant impact in the second quarter. These include the new Romy shoe, with its softer point and new unique heel construction, and the Ren, a modern fashion twist on the classic Jimmy Choo caged sandal.

Jimmy Choo enjoys brand flexibility and versatility demonstrated by continuing growth outside of Women's shoes.

In Accessories, we continue to build a franchise in our core bag groups, with our Lockett style in particular attracting significant client interest and celebrity attention.

Men's remains the fastest growing category and now represents 8% of global revenue. In total we have 71 dual gender stores globally and see the potential for continued growth in this sector, so that it will come to represent a proportion of our revenue well into double digits.

At the start of June, Sandra Choi collected the Accessories Designer award at the Glamour Women of the Year Awards, and later in the month we won three awards at the Draper's Footwear Awards including Designer of the Year, Women's Brand of the Year and Store Design of the Year.

Distribution

We continue to roll out our outperforming New Store Concept across our store portfolio, with six new DOS and nine renovations and relocations in the first half. This brings the total number of DOS to 147 and New Store Concept stores within that to some 40% of the portfolio. Our store development programme continues unchanged. We expect to open 10-15 new DOS each year, towards our medium term target of 200 DOS, and to renovate a further 10-15 DOS each year.

Our global footprint of ten planned flagship stores is designed to be a fuller expression of the Jimmy Choo brand in key locations around the world. Those in New Bond Street, Sloane Street, Beverly Hills and Harbour City Hong Kong are already open. During the period we relocated our Madison Avenue flagship store in New York, achieving strong revenue performance from the outset. Further flagship stores are planned in Milan, Paris, Tokyo, Shanghai and Beijing with the programme expected to be completed during 2017.

We continue to expand in a low risk way outside of our existing core regions through franchise relationships. During the period, we opened ten franchise doors in Kazakhstan, Qatar, Chile, Japan, Macau, South Korea and Australia, including seven travel retail doors. This acts as a strong base for our franchise ambitions as well as laying the foundations for potential joint ventures in Korea and the Middle East.

The business remains underpenetrated in Asia both in DOS and travel retail with significant growth opportunities. At 147 DOS, the business has significant growth potential towards its medium term target of 200 DOS.

Licensing/Other

We have continued to experience strong growth in licence income with our partners Safilo and InterParfums for sunglasses & eyewear and fragrance respectively, leading to constant currency growth of 18.2% in this segment, further evidencing the lifestyle appeal and versatility of the brand. We have extended our Safilo licence until 2023 and have scheduled the launch of Men's sunglasses & eyewear for 2018.

Digital-Led Client Interaction

As a digital leader, we continue to increase digital investment in order to ensure that we reach new and existing clients in the most relevant way. As a result, our social media following continues to grow alongside our brand recognition - during the first half of the year our number of YouTube views grew to some 20 million and at the period end we had a total of 4.4 million Instagram followers, which are our two fastest growing channels.

As an important part of our retail strategy, we continue to invest in our eCommerce platform, which saw strong revenue growth in the period, with Omnichannel services scheduled for a progressive roll out in the UK and USA from the second half. SAP is now rolled out successfully in all our core markets and we are starting to see the benefits of this new system, with roll out of continuous replenishment planned for 2017.

Revenue Analysis

Revenue by Channel

Our overall revenue increased by 3.8% on a constant currency basis (9.2% on a reported basis), with continued growth across all segments evidencing the successful implementation of our strategy in the attractive luxury shoe market.

Retail

In the period, retail revenue grew by 2.1% on a constant currency basis to £107.3m. Reported revenue was 7.6% ahead of last year. We continued to see good performance from our New Concept stores, offset by strong comparatives and disruption from our store development programme. We renovated or relocated nine stores during the period, bringing the total stores trading in the New Store Concept at the period end to some 40% of the DOS estate, including our five flagships. We have had a strong start to the second half. Our Online business, at 6% of revenue, continued to develop well during the period, with Omnichannel services scheduled for a progressive roll out in the UK and USA from the second half.

Wholesale

Wholesale benefitted from a normalisation of deliveries compared to last year as well as expansion in the number of franchise doors in the period. Our wholesale business grew by 5.6% on a constant currency basis (and 10.6% on a reported basis) despite the expected reduced purchasing by USA department stores in the face of weaker footfall in the USA generally.

Revenue by Destination

Asia has again led the way, leading to a more evenly split geographical portfolio between the Americas, Europe and Asia, underlining that Jimmy Choo is an increasingly balanced global business.

China and Hong Kong both recorded growth and we expanded in other territories in the region through the opening of franchise doors, including travel retail. In total we opened two DOS and six Franchise doors in Asia ex-Japan in the period and have experienced double digit LFL growth in mainland China.

We experienced further growth in Japan, with continued strong domestic demand offsetting lower overall Chinese tourist luxury spending this year. Men's was a notable success, representing 26% of revenue from the region in the first half.

Our business in the Americas has been repositioned, with USA wholesale revenue accounting for only 10% of global revenue. This coincided with the expected reduced purchasing by department stores. Elsewhere there has been softer luxury demand in the USA generally, compounded by a drop in sales to international tourists. During the period, we continued our investment programme in this market with the relocation of our Madison Avenue flagship and Chicago DOS and the opening of a new store in Soho on Greene Street, bolstering our powerful North American platform. We have been particularly pleased with the sales performance of Madison Avenue since relocation.

In EMEA, we have seen growth in the UK, where our store portfolio is fully renovated, and experienced domestic demand growth across EMEA generally, offset in part by weaker sales to international clients. Whilst tourist spending on luxury has declined overall in Europe due to the impact of geopolitical events since the end of 2015, our global brand strength has limited the impact, as we continue to see an outperformance compared to other luxury brands with key tourist nationalities.

Overall we have seen good growth in virtually all regions, with the actions under way in the USA allowing for continued market outperformance globally.

Profit Analysis

Gross Margin

In H1 2016, gross margin benefitted from volume growth, lower markdowns and improvement on logistics costs as well as the movement in the GBP, offset by continued reinvestment in Men's and Fashion collections. As a result, gross margin at 63.6% improved by 90bps against a 2015 reported gross margin of 62.7%.

Costs 

Direct channel expenses continued to reflect the impact of the store development programme, including the opening of six new DOS, the year on year effect of the conversion of our franchise stores in Singapore and Malaysia to DOS and the renovation and relocation of nine DOS in the period. As a result, these costs increased by £7.1m (16.0%) in H1 2016, of which 10% related to development programme costs (including one time duplicate rental costs in Madison Avenue) and 5.5% was currency.

We continued to invest in brand communication, with an investment of £7.2m or 4.2% of revenue, up by 5.8% compared to H1 2015. The first half traditionally involves lighter investment in this area and we continue to work to an expectation of annual brand communication spending of c.5% of revenue. Our media presence continued to grow and we were again ranked as the top brand by DMR in global editorial ranking for luxury shoes.

Overheads in the first half of 2016 benefitted from our recent investments in systems infrastructure, replatforming and continued tight cost control and reduced by 1.4% to £20.4m (H1 2015: £20.7m). In June, we went live with SAP in Japan, completing the implementation programme of SAP across our major markets.

Exceptional costs of £0.4m (H1 2015: £0.8m) were incurred during the period and were related to the remaining costs associated with the replatforming of the business. 

Profits and Earnings

In H1 2016, Adjusted EBITDA grew by 12.8% compared to the prior year, with our Adjusted EBITDA margin increasing to 18.1% from 17.5%. This increase resulted from strong revenue and margin growth, with stronger gross margins and operating leverage on lower overheads and exceptional costs more than offsetting the impact of the DOS opening and refit programme and higher brand communication investment during the period.

Depreciation and amortisation reflected the continued investment in new stores, the roll out of the New Store Concept and the completion of the later stages of the replatforming of business systems, and grew from £8.8m in H1 2015 to £9.7m in 2016, an increase of £0.9m or 10.3%. Depreciation and amortisation was 5.6% of revenue (H1 2015: 5.5%), leading to Adjusted EBIT of £21.6m (H1 2015: £19.0m).

Within Adjusted EBT, financing charges of £10.0m increased by £6.5m against the prior period. This increase was driven by the revaluation of financial instruments which was impacted by the devaluation of the GBP following the UK's EU Referendum result. A foreign exchange gain on the revaluation of monetary items of £4.0m partially offset the loss on financial instruments in the period.

In March, we refinanced our debt with a new facility of £200m with a five year tenor. This will lead to lower interest charges over the life of the loan with the borrowing structured to reduce income statement volatility.

Adjusted Consolidated Net Income for the period of £14.3m (H1 2015: £11.1m) included a lower tax charge and generated an Adjusted EPS of 3.8 pence per share (H1 2015: 3.0 pence per share).

These results demonstrate the impact of the operating leverage driving margin expansion at each level as well as cash generation.

Foreign Exchange Impacts

Jimmy Choo is a global business, well placed to take advantage of market dynamics seen since the GBP devaluation. We have a total of 10 DOS in the UK, accounting for 6.6% of our global sales area. 9.5% of global revenue is derived in GBP while 28% of operating costs are denominated in GBP. Hence a weaker GBP will lead to a reported upside in business performance at a revenue and profit level.

Cash Flows

Cash flows before financing activities improved by £2.0m compared to a net outflow of £(1.7)m in H1 2015. This was driven by a significant improvement in cash generated from operating activities and lower exceptional payments than in H1 2015.

This also reflects our continued focus on working capital. As a result, EBITDA cash conversion improved to 84.5% of Adjusted EBITDA in H1 2016 from 70.0% of Adjusted EBITDA in H1 2015.

Net Debt

Net debt increased to £136.1m from £121.4m at the start of the year, driven by loan revaluations and capital expenditure during the period.

On 17 March 2016, we signed and completed the refinancing of our debt with a new facility of £200m. This results in a reduction in borrowing costs, an improvement in headroom and certainty over financing for the next 5 years and is earnings accretive from the outset. The Group's previous principal debt facilities were repaid in full. 

Board

On 15 June 2016, Gianluca Brozzetti stepped down from the board of the Company in order to dedicate more time to his Executive assignments. Meribeth Parker replaces Gianluca Brozzetti on the Remuneration Committee and is also joined by Anna-Lena Kamenetzky.

Outlook

The Jimmy Choo brand, driven by Sandra Choi's innovative new products and collections, continues to resonate with new and existing clients and there is significant scope for long term growth for the business, particularly in Asia where we remain underpenetrated. Our plans include expansion of the retail network, further channel development opportunities including joint ventures in South Korea and the Middle East, roll out of the New Store Concept and the progressive implementation of Omnichannel services and CRM.

The Company believes that Jimmy Choo's brand strength within the structurally advantaged luxury shoe market, new store roll out opportunity and continued investment in design and brand communication will drive attractive revenue growth ahead of the wider luxury environment. This, together with good management of both gross margin and operating costs, leads to strong prospects for earnings improvement enhanced by the favourable positioning of the Company with its first home market in the UK.

Management expects that the business continues to leverage the investment to make progress on underlying improvements in profitability, further enhanced by the impact of the GBP devaluation.

Cash generation remains strong and our medium term goal of delevering the business to 1x Net Debt:EBITDA remains in place.

We have seen a strong start to the second half in addition to a positive benefit from a weaker GBP. The Company views the balance of the year with confidence.

Appendix 1 - Financial Information

Condensed consolidated income statement

For the period ended 30 June 2016 (Unaudited)

The accompanying notes are an integral part of the unaudited condensed financial statements.

Condensed consolidated statement of comprehensive income

For the period ended 30 June 2016 (Unaudited)

The accompanying notes are an integral part of the unaudited condensed financial statements.

 Condensed consolidated statement of financial position

As at 30 June 2016 (Unaudited)

The accompanying notes form an integral part of the unaudited condensed financial statements.

 Condensed consolidated statement of changes in equity

For the period ended 30 June 2016 (Unaudited)

The accompanying notes form an integral part of the unaudited condensed financial statements.

Condensed consolidated statement of cash flows

For the period ended 30 June 2016 (Unaudited)

The accompanying notes form an integral part of the unaudited condensed financial statements.

Appendix 2 - Notes to the Financial Statements

For the period ended 30 June 2016 (Unaudited)

1. Basis of preparation and principal accounting policies

The condensed set of financial statements of Jimmy Choo PLC ("the Company") as at, and for, the six month period ended 30 June 2016 comprises the Company and its subsidiaries (together referred to as "the Group"). The Directors have a reasonable expectation that the Group has sufficient resources to continue in existence for the foreseeable future, being a period of not less than 12 months from the date of this report. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

The Group financial statements as at, and for, the year ended 31 December 2015 prepared in accordance with IFRSs as adopted by the EU and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, are available on the Company's website at www.jimmychooplc.com/investors/results-and-investors-presentations.

The comparative figures for the year ended 31 December 2015 are not the Company's statutory accounts for that year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified (ii) did not include any reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498(2) or (3) of the Companies Act 2006.

The condensed set of financial statements for the six months ended 30 June 2016 is unaudited but has been reviewed by the auditors. The Independent review report is set out at the end of this report.

Statement of compliance

The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. The condensed set of financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the Group's financial statements as at, and for the year ended 31 December 2015.

This condensed set of financial statements was approved by the Board of Directors on 25 August 2016.

Adoption of new and revised standards

No changes to new or revised accounting standards have had a material impact on the consolidated financial statements of the Group.

Estimates and judgements

The preparation of a condensed set of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

Refer to note 2 of the financial statements of the Group for the year ended 31 December 2015 for further detail.

2. Operating segments

The following is an analysis of the Group's revenue and results by reportable segment in the six months ended 30 June 2016:

The following is an analysis of the Group's revenue and results by reportable segment in the six months ended 30 June 2015:

The following is an analysis of the Group's revenue and results by reportable segment in the year ended 31 December 2015:

The following table provides an analysis of the Group's revenue by geographical destination, irrespective of the origin of the goods:

 The following table provides an analysis of the Group's total assets by reportable segment:

3. Exceptional costs

The Group incurred the following costs during the periods presented that are considered to be exceptional:

Replatforming costs represent costs associated with strengthening product development (in the Florence facility), reinforcing the team in key functions, undertaking regional buyouts in Asia and scaling up the information systems capability and office infrastructure to support the growth strategy.

4. Operating profit

Operating profit is stated after (charging)/crediting:

5. Net financing expense

Foreign exchange losses and gains on external borrowings are movements relating to the previous loan facility.

6. Income tax expense

Tax for the six month period is charged at 25.1% before favourable adjustments in respect of deferred tax (six months ended 30 June 2015: 24.5%; year ended 31 December 2015: 12.2%), representing the best estimate of the average annual effective tax rate expected for the full year, applied to the pre-tax income of the six month period.

7. Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period. There were no shares issued during the period. The difference between basic and diluted earnings per share is not material.

In order to provide a measure of underlying performance, the Group has chosen to present an additional illustrative measure of adjusted earnings per share. Adjusted earnings per share has been calculated using Adjusted Consolidated Net Income (see note 12) and dividing by the number of ordinary shares outstanding as at 30 June 2016.

Weighted average number of ordinary shares

Earnings per share

8. Property, plant and equipment

During the period, the Group made additions to property, plant and equipment of £11.7 million (six months ended 30 June 2015: £10.8 million, 12 months ended 31 December 2015: £15.5 million).

9. Interest bearing loans and borrowings

Secured bank loan and facility

The principal amounts, interest margins and expiry dates for the main bank facilities as at 30 June 2016 are:

On 17 March 2016, the Group signed a new 5 year financing agreement, which includes a £125 million Term Loan, £75 million Revolving Credit Facility with an option to increase by a further £50 million. The principal debt facilities are provided by a syndicate of banks and expire on 16 March 2021.

During the current period, £132.4 million of the Term Loan was drawn together with £15.4 million of the Revolving Credit Facility. During the period, all outstanding amounts relating to the Group's previous principal debt facilities were repaid in full.

10. Financial Instruments' fair value disclosures

Fair value disclosure

The carrying amount of financial assets and liabilities approximate their fair values. The majority of the financial assets are current. The majority of the current interest-bearing liabilities are at variable interest rates. The fair values of the non-current fixed rate interest-bearing liabilities are not materially different from their carrying amounts.

The fair value of non-current fixed rate interest-bearing liabilities is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the reporting date.

The fair value of derivative instruments (currency forwards and options) is determined based on current and available market data. Pricing models commonly used in the market are used, taking into account relevant parameters such as forward rates, spot rates, discount rates, yield curves and volatility.

Fair value hierarchy

Financial instruments carried at fair value are categorised into the below levels, reflecting the significance of the inputs used in estimating the fair values:

Level 1: Quoted prices (unadjusted) in active markets for identical instruments;

Level 2: Valuation techniques based on observable inputs, other than quoted prices included within level 1, that are observable either directly or indirectly from market data;

Level 3: Valuation techniques using significant unobservable inputs, this category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation.

The Group had the following financial instruments at 30 June 2016, all of which have been measured using a level 2 valuation method.

11. Related party transactions

There have been no changes in the nature of related party transactions to those described in the 2015 Annual Report that could have a material effect on the financial position or performance of the Group in the period to 30 June 2016.

12. Principal Risks

The Board carries out a formal process to identify, evaluate and manage significant risks faced by the Group. In the view of the Board, the principal risks and uncertainties affecting the Group for the remaining six months of the financial year are those set out on pages 42 to 44 of the 2015 Annual Report and Financial Statements (www.jimmychooplc.com/investors/results-and-investors-presentations) and which are summarised below.

These risks have remained unchanged and the Group continues to actively monitor and manage these risks. Recent events include a slowing of global economic growth and the EU Referendum and the attendant devaluation of the GBP have not altered the Group's views of the principal risks facing the business.

13. Reconciliation of non-GAAP performance measures

Adjusted EBITDA

Adjusted EBIT

Adjusted Earnings before tax

Adjusted Consolidated Net Income

The tax impact on adjusting items in Adjusted Consolidated Net Income would be £(1.8)m in 2016 and £1.0m in 2015.

Adjusted Operating Cash Flow

Responsibility statement of the directors in respect of the half-yearly financial report

 We confirm that to the best of our knowledge:

· the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

· the interim management report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

By order of the Board

Pierre Denis 

Chief Executive Officer

25 August 2016

Independent Review Report to Jimmy Choo PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2016 which comprises Condensed consolidated income statement, the Condensed consolidated statement of comprehensive income, the Condensed consolidated statement of changes in equity, the Condensed consolidated statement of financial position, the Condensed consolidated statement of cash flows and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2016 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FCA.

Graham Neale

Senior Statutory Auditor

for and on behalf of KPMG LLP

Chartered Accountants

One Snowhill

Snow Hill Queensway

Birmingham

B4 6GH

25 August 2016