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Davide Campari-Milano N.V.

Earnings Release Feb 21, 2023

7328_iss_2023-02-21_97fdf78f-00b3-4636-b3c6-ef71315462f6.pdf

Earnings Release

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Double-digit organic sales growth in full year 2022, driving operating margin expansion despite input cost inflation

Continued successful execution of the long-term growth strategy with business growing 40% organically vs. pre-pandemic

Confidence in continued strength of future demand leading to robust medium-term supply chain investments to double overall production capacity in key aperitifs, bourbon and tequila categories

Solid progress on Sustainability agenda with B rating from the CDP Climate Change questionnaire

FULL YEAR 2022-RESULTS HIGHLIGHTS

  • Net sales of €2,697.6 million, up +24.2% on a reported basis.
  • o in full year 2022 organic growth of +16.4% vs. 2021 (+39.9% vs. 2019 or 3-year organic CAGR of +11.8%) thanks to robust brand momentum, boosted by pricing.
  • o in fourth quarter organic growth of +9.6% reflecting strong pricing as well as expected supply constraints.
  • EBIT-adjusted of €569.9 million, 21.1% on net sales, up +30.9% on a reported basis.
  • o in full year 2022 organic growth of +19.1% vs. 2021 (+33.4% vs. 2019 or 3-year organic CAGR of +10.1%), +50 basis points organic margin expansion thanks to operating leverage, offsetting expected gross margin dilution driven by input costs inflation.
  • o in fourth quarter organic growth of +7.6%, -20 basis points organic margin dilution, driven by gross margin dilution of -20 basis points with input cost inflation almost fully offset by positive pricing initiatives.
  • o favourable FX, mainly driven by the strong US dollar, and positive perimeter effect.
  • EBITDA-adjusted of €660.3 million, 24.5% on net sales, up +28.2% on a reported basis (organic growth of +17.3%).
  • Group net profit-adjusted of €387.8 million, up +26.0%. Group net profit of €333.0 million, up +16.9%.
  • Net financial debt of €1,552.5 million as of December 31st, 2022, up €721.6 million vs. December 31st, 2021, reflecting positive free cash flow which was more than offset by acquisitions, the net purchase of own shares and the dividend payment. Net debt to EBITDA-adjusted ratio at 2.4 times as of December 31st, 2022 (or 2.2 times on pro-forma basis), driven by acquisitions.
  • Proposed full year dividend of €0.06 per share, unchanged vs. the previous year.

Milan, February 21st, 2023-The Board of Directors of Davide Campari-Milano N.V. (Reuters CPRI.MI-Bloomberg CPR IM) approved Campari Group's Annual Report for the year ended December 31st, 2022.

Bob Kunze-Concewitz, Chief Executive Officer: 'In a challenging 2022, we continued to make solid progress in pursuing our long-term growth strategy focusing on sustainable brand building as well as portfolio enhancement via attractive acquisitions. Compared with the pre-pandemic period, our net sales grew by 40% organically thanks to strong brand health, pricing as well as enhanced commercial capabilities driving strong consumer demand.

Looking ahead into 2023, we remain confident about the positive business momentum across key brands and markets thanks to strong brand equity, in particular aperitifs. We will continue to leverage adequate price opportunities in specialties as well as portfolio premiumisation in brown spirits. The overall macro environment for inflation remains challenging despite some signs of easing; nevertheless, we remain confident to preserve the current operating margin on sales at the organic level.

Looking at the medium term, we remain confident to continue delivering strong organic topline growth and mix improvement leading to margin expansion. To satisfy future demand, we are accelerating our investments in supply chain with the aim to double our overall production capacity in key aperitifs, bourbon and tequila categories.'.

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SUMMARY FINANCIAL INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022

FY 2022 FY 2021 Reported Organic Perimeter Forex Org change Org change
CAGR
€ million € million Change Change Impact Impact vs. Q4 2021 FY 2022-19
Net sales 2,697.6 2,172.7 24.2% 16.4% -0.2% 7.9% 9.6% 11.8%
Gross profit 1,588.6 1,296.8 22.5% 14.1% 0.2% 8.2% 9.2%
% on sales 58.9% 59.7%
EBIT-adjusted 569.9 435.2 30.9% 19.1% 0.4% 11.5% 7.6% 10.1%
% on sales 21.1% 20.0%
EBIT 511.5 400.8 27.6%
Group net profit-adjusted 387.8 307.9 26.0%
Group net profit 333.0 284.8 16.9%
EBITDA-adjusted 660.3 514.9 28.2% 17.3% 0.3% 10.6% 8.0% 9.5%
% on sales 24.5% 23.7%
EBITDA 602.0 480.6 25.3%
Free cash flow, of which: 188.7 332.3 -43.2%
Recurring free cash flow 360.5 407.5 -11.5%
Net financial debt at the end of the
period
(1,552.5)
Basic earnings per share-adjusted (€) 0.34 0.27 26.0%
Proposed full year dividend per share
(€)
0.06 0.06 -

REVIEW OF CONSOLIDATED SALES FOR THE FULL YEAR 2022 RESULTS

Group sales totalled €2,697.6 million, up +24.2% on a reported basis or +16.4% in organic terms (+9.6% in the fourth quarter). The perimeter effect was -0.2%, while the FX effect was +7.9% (or €172.5 million) mainly driven by the strong US Dollar.

Analysis of organic change by geography:

  • Sales in the Americas (46% of total Group sales) were up organically by +16.6%. The Group's largest market, the US, grew by +14.0% (+39.3% vs. FY2019 or 3-year CAGR of +11.7%), thanks to continued positive momentum in the onpremise and resilient home consumption. The positive full year performance was mainly driven by the double-digit growth of Espolòn, core Wild Turkey bourbon, Russell's Reserve, Aperol and Campari, thanks to strong consumer demand, benefitting also from price increases. The shipments of Grand Marnier were slightly down (against a tough comparison base of +44.6%) due to continuing glass supply constraints, while the SKYY portfolio declined. Jamaica registered strong double-digit growth driven by Wray&Nephew Overproof and Campari. Within the other markets of Americas, Canada delivered positive overall performance and the rest of the region, including Brazil, Mexico and Argentina, delivered strong growth driven by consumer demand.
  • Sales in Southern Europe, Middle East and Africa1 (28% of total Group sales) grew by +18.2%. The region's largest market, Italy, was up +15.4% (+30.1% vs. FY2019 or 3-year CAGR of +9.2%) thanks to strong on-premise consumption and successful price increases, helped also by good weather during the summer. The performance was slightly negative in the fourth quarter (-1.5%) mainly due to the glass availability constraints on Cinzano sparkling wines in its peak season and a tough comparison base (+60.0% Q4 2021), mitigated by growth in Aperol and Campari thanks to strong brand health. France grew +12.1%, mainly driven by the double-digit growth of Aperol and Riccadonna. Other

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1 Includes Global Travel Retail.

markets in the region registered a very positive performance, particularly thanks to the strong double-digit growth of Spain, Nigeria and South Africa. GTR was up +80.8%, benefiting from tourism recovery.

  • North, Central and Eastern Europe (19% of total Group sales) grew organically by +14.9%. Germany registered strong growth of +18.6% (+37.6% vs. FY2019 or 3-year CAGR of +11.2%), thanks to continued resilient home consumption combined with a strong on-premise, boosted also by pricing. The performance was largely led by Aperol, Aperol Spritz ready-to-enjoy and Crodino, whilst Campari also grew mid-single digits following the strong price repositioning. The UK grew by +13.7% despite a tough comparison base (+39.1% FY2021) mainly driven by continued positive momentum of core Aperol and Magnum Tonic, despite product availability constraints of the latter. The other markets in the region were also positive, led by the Aperitifs, including Crodino.
  • Sales in Asia Pacific (7% of total Group sales) grew organically by +12.4%. Australia grew +9.6% (+31.9% vs. FY2019 or 3-year CAGR of +9.7%), driven by strong shipments recovery in the fourth quarter of Wild Turkey ready-to-drink following persistent ocean freight constraints. The positive growth was also driven by Wild Turkey Bourbon, Aperol and Campari. Other markets in the region registered an overall positive performance (+17.6%), in particular South Korea (+84.1%). Japan was positive after a strong fourth quarter. China was negative due to lockdowns in relation to the zero-Covid policy. India delivered very positive performance albeit off a small base.

Analysis of organic change by brand:

  • Global Priorities (57% of total Group sales) registered an organic growth of +18.7%. Aperol delivered strong double-digit growth (+28.2%) in its 19th year after the acquisition, across all key markets, thanks to very healthy brand momentum and the successful execution of its growth model, further boosted by price increases. Key drivers were, in particular, core Italy (+20.5%), Germany (+31.9%), the US (+49.8%), France (+35.5%), the UK (+20.9%), and Spain (+84.6%). Brand momentum was strong elsewhere as well. The fourth quarter performance was strong (+15.8%) despite the elevated comparison base (+45.8% in Q4 2021), thanks to the continued deseasonalisation activities across core European markets and the extension of drinking occasions. Campari delivered strong growth of +23.8% with continued momentum in the fourth quarter (+7.2%) despite the tough comparison base (+35.3% Q4 2021). The performance was largely driven by core Italy (+26.4%), the US, Brazil and Jamaica, as the brand continues to benefit from the resilient at-home mixology trend and continued health in the on-premise. This was driven by the success of the consumer-driven Campari spritz amongst other cocktails such as the Negroni, Negroni Sbagliato and Boulevardier, further boosted by strong pricing. Wild Turkey registered strong growth (+21.4%) with a solid performance in the fourth quarter, mainly thanks to the core US market, South Korea and Australia. In 2022, Wild Turkey core bourbon grew +26.2% thanks to a combination of classic cocktail revival in the on-premise channel and at-home mixology, as well as strong pricing. Highend Russell's Reserve grew +36.4% as consumers continue to premiumise and discover high quality sipping bourbon. American Honey was only slightly positive, handicapped by glass constraints. Grand Marnier was overall positive largely thanks to Global Travel Retail and France, which more than offset the weak shipment performance in the core US market, impacted by glass supply and logistics constraints and a tough comparison base (+44.6% in FY2021). Jamaican rum portfolio grew +15.5% overall against a tough comparison base, mainly thanks to Jamaica, the UK, Mexico and New Zealand. SKYY declined by -1.8% largely due to the US and China, partly mitigated by other international markets.
  • Regional Priorities (25% of total Group sales) recorded a positive performance (+18.7%). Espolòn grew double digits (+33.5%) despite the tough comparison base (+37.5% in FY 2021) with sustained growth in the fourth quarter (+37.3%), thanks to the core US, as well as international markets, including Australia, albeit off a small base. Crodino grew double digits driven by strong growth in core Italy as well as seeding markets, where the brand continues to establish itself as the go-to non-alcoholic aperitif. The GlenGrant grew double digits driven by premiumisation, in particular in South Korea and Global Travel Retail. The other brands such as the Italian specialties, the sparkling wines and vermouths (Cinzano, Mondoro and Riccadonna) and Aperol Spritz ready-to-enjoy all delivered double digit growth. Magnum Tonic was flattish due to continued product availability constraints.
  • Local Priorities (8% of total Group sales) grew +5.7% with positive performance of Campari Soda, Wild Turkey readyto-drink, SKYY ready-to-drink and Cabo Wabo. X-Rated declined driven by weak performance in China, whilst South Korea continued to grow double digits.

REVIEW OF FULL YEAR 2022 RESULTS

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Gross profit totalled €1,588.6 million, corresponding to 58.9% of net sales, up by +22.5% in value on a reported basis. It grew organically by +14.1%, a margin dilution of -120 basis points, due to strong cost inflation, particularly glass and logistics, only partially mitigated by the price increases. In the fourth quarter, gross margin dilution was limited to -20 bps, driven by positive pricing initiatives, which almost offset the COGS inflation.

Advertising and Promotion expenses (A&P) were €479.0 million, corresponding to 17.8% of net sales, up by +20.4% in value on a reported basis. They increased organically by +12.7%, reflecting sustained investments behind key brands, +60 basis points margin accretive thanks to the strong topline.

CAAP (Contribution after A&P) was €1,109.6 million, corresponding to 41.1% of net sales, up by +23.4% in value on a reported basis and up +14.7% organically.

Selling, general and administrative expenses (SG&A) totalled €539.8 million, corresponding to 20.0% of net sales, up by +16.4% in value on a reported basis. They grew organically by +10.6%, reflecting the continuous investments in the business infrastructure and route-to-market, generating a margin accretion of +110 basis points thanks to the strong topline growth.

EBIT-adjusted was €569.9 million, corresponding to 21.1% of net sales, up by +30.9% in value on a reported basis. It grew organically by +19.1% (+7.6% in the fourth quarter), generating a margin accretion of +50 basis points. The perimeter effect on EBIT-adjusted was +0.4% (or €1.6 million) resulting mainly from the first-time consolidation of Picon, net of lowermargin agency brands termination. The forex effect on EBIT-adjusted was positive by +11.5% (or €50.0 million), mainly driven by the strong US Dollar.

Operating adjustments were negative at (58.3) million, mainly attributable to transaction fees linked to acquisitions, provisions linked to the Russia /Ukraine conflict, restructuring initiatives and long-term retention schemes.

EBITDA-adjusted was €660.3 million, up by +28.2% in value on a reported basis (up organically +17.3%), corresponding to 24.5% of net sales.

EBIT (19.0% of net sales) and EBITDA (22.3% of net sales) were at €511.5 million and €602.0 million respectively.

Net financial expenses and adjustments were €30.7 million. Excluding the exchange gains and the financial adjustments, the net financial expenses were €21.4 million showing a decrease of €3.6 million compared with full year 2021. The average cost of net debt in FY 2022 was 2.2%2, showing an improvement of 30 bps compared with last year, thanks to higher interest income generated by existing liquidity.

Profit before taxation was €475.0 million. Profit before taxation adjusted was €538.0 million, up +29.5% vs. the full year 2021.

Taxation totalled €143.5 million, on a reported basis. Recurring income taxes were equal to €151.6 million excluding positive tax adjustments totalling €8.2 million.

Group net profit at €333.0 million. Group net profit adjusted3 was €387.8 million, up +26.0% vs. 2021.

Free cash flow was €188.7 million (vs. €332.3 million in 2021). Recurring free cash flow amounted to €360.5 million (down 11.5% from €407.5 million in 2021). This decrease was mainly driven by higher cash outlays linked to tax payments, working capital step-up and higher capex. Total capex investment of €213.3 million in FY 2022, of which extraordinary capex of €105.8 million, mainly linked to projects to enhance the Group's production capacity and IT infrastructure as well as its ESG projects, brand houses and office.

Net financial debt at €1,552.5 million as of 31 December 2022, up €721.6 million vs. 31 December 2021 (€830.9 million), reflecting positive free cash flow generated by the business for €188.7 million (or €360.5 million on a recurring basis), which were more than offset by acquisitions (amounting to €732.9 million), net purchase of own shares (€121.1 million) and the dividend payment (€67.6 million).

Net debt to EBITDA-adjusted ratio at 2.4 times as of 31 December 2022 (or 2.2 times including the pro-forma EBITDA of the recent acquisitions), increased from 1.6x as of 31 December 2021 due to higher net debt level.

SUSTAINABILITY

In 2022, the Group continued to make solid progress on its sustainability agenda. In particular, the Group was recognized with a B rating by the CDP (Carbon Disclosure Project) Climate Change questionnaire and disclosed for the first time the

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2 Not reflecting the effect of the net debt related to the new tern loan closed in December 2022 to finance the Wilderness Trail Distillery, LLC acquisition

3 Before total adjustments (including tax effects) of €(54.8) million (vs. €(23.1) million adjustments in 2021)

GHG Scope 3 emissions. The Group also achieved some of its key environmental targets ahead of time: GHG emissions (measured as kg of CO2 per Litre) were reduced by 47% from direct operations (scope 1&2) vs. 2019, the target originally set for 2030 has been achieved; Water usage (L/L) was reduced by 48% vs. 2019, the target originally set for 2030 has been achieved; Waste to landfill was reduced by 45% vs. 2019, on track to achieve the 2025 target. Moreover, the Group continued to build on its pillars of Responsible practices, People and Community with a strong commitment across responsible drinking, inclusion, education and culture.

OTHER RESOLUTIONS

Dividend, Sustainability report and remuneration report. The Board of Directors proposed to the Shareholders' Meeting, a dividend of €0.06 per share for the year 2022, gross of withholding taxes, unchanged versus last year. The dividend will be paid on April 26th, 2023 (with an ex-date for coupon n. 3 of April 24th, 2023 in accordance with the Italian Stock Exchange calendar, and a record date of April 25th, 2023). The Board of Directors resolved to convene the Annual General Meeting on April 13th, 2023 to approve the Annual Report including, inter alia, the financial statements for the year ended 31st December 2022, the non-financial disclosure, the corporate governance and the remuneration report.

Share buyback. The Board of Directors proposed to the Shareholders' meeting the authorisation to purchase its own shares, mainly aimed at the replenishment of the portfolio of own shares to serve the current and future stock option plans for the Group's management, according to the limits and procedures provided by the applicable laws and regulations. The authorization is requested from April 13th, 2023, until October 13th, 2024.

Stock options. The Board of Directors proposed to the Shareholders' meeting to approve a stock option plan. The plan foresees the granting of stock option plans to defined beneficiaries other than the members of the Board of Directors. The relevant bodies will be authorized to implement the plan by June 30th, 2024. Relevant details are available in the Information Document pursuant to article 114-bis of the Consolidated Law on Financial Intermediation to be published on the Campari Group's website.

* * *

FILING OF DOCUMENTATION

The Annual Report as of 31st December 2022 (including, inter alia, the non-financial disclosure, the corporate governance report, the report of the non-executive directors, the statement and responsibilities in respect to the annual report, the remuneration report and the independent auditor's report) is available at the corporate offices of the Company in Sesto San Giovanni (MI), Via Franco Sacchetti 20, on the Company's website (https://www.camparigroup.com/en/page/investors), and by all other means allowed by applicable regulations.

The Annual report, inclusive of the management report, the full year consolidated financial statements and the Company only financial statements at 31 December 2022, was prepared in accordance with the Dutch Civil Code and the applicable International Financial Reporting Standards (IFRS).

Disclaimer

This press release contains certain forward-looking statements relating to the Campari Group. All statements included in this press release concerning activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, the following: volatility and deterioration of capital and financial markets, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation and other economic, business and competitive factors affecting the businesses of Campari Group. Such factors include, but are not limited to: (i) changes in the laws, regulations or policies of the countries where Campari Group operates; (ii) the adoption, both at a global level and in the countries where Campari Group operates, of restrictive public policies that have an impact on the production, distribution, marketing, labelling, importation, price, sale or consumption of alcoholic products; (iii) long-term changes in consumers' preferences and tastes, social or cultural trends resulting in a reduction in the consumption of products of the Campari Group as well as in purchasing patterns and the ability of Campari Group to anticipate these changes in the marketplace; and (iv) increased production costs and volatility of raw materials' prices. Therefore, Campari and its affiliates, directors, advisors, employees and representatives, expressly disclaim any liability whatsoever for such forward-looking statements.

These forward-looking statements speak only as of the date of this document and Campari does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise, except as required by law.

ANALYST CONFERENCE CALL

Campari's management team will host a conference call to present the Group's Full Year 2022 results today at 1:00 pm (CET). To participate via webcast (listen only):

Page 5 of 11

https://event.choruscall.com/mediaframe/webcast.html?webcastid=vO725e6N

To participate via audio and ask questions, please dial one of the following numbers:

  • from Italy: (+39) 02 802 09 11
  • from abroad: +44 1212 818004

Digital Playback:

A digital playback of the conference call & webcast will be available from today, until 28th February, 2023. To listen to it, please call the following number:

(+39) 02 802 09 87

(Access code: 700973#) (PIN: 973#)

Presentation slides:

The presentation slides available to download from Campari's Investor Relations Home Page at the address:

https://www.camparigroup.com/en/page/investors

FOR FURTHER INFORMATION

Investor Relations
Chiara Garavini Tel. +39 02 6225330 Email: [email protected]
Jing He Tel. +39 02 6225832 Email: [email protected]
Thomas Fahey Tel. +44 (0)20 31009618 Email: [email protected]
Corporate Communications
Enrico Bocedi Tel. +39 02 6225680 Email: [email protected]

https://www.camparigroup.com/en/page/investors http://www.camparigroup.com/en http://www.youtube.com/camparigroup https://twitter.com/GruppoCampari https://www.linkedin.com/company/campari-group

Visit Our Story

ABOUT CAMPARI GROUP

Campari Group is a major player in the global spirits industry, with a portfolio of over 50 premium and super premium brands, spreading across Global, Regional and Local priorities. Global Priorities, the Group's key focus, include Aperol, Campari, SKYY, Grand Marnier, Wild Turkey and Appleton Estate. The Group was founded in 1860 and today is the sixth-largest player worldwide in the premium spirits industry. It has a global distribution reach, trading in over 190 nations around the world with leading positions in Europe and the Americas. Campari Group's growth strategy aims to combine organic growth through strong brand building and external growth via selective acquisitions of brands and businesses.

Headquartered in Milan, Italy, Campari Group operates in 23 production sites worldwide and has its own distribution network in 23 countries. Campari Group employs approximately 4,300 people. The shares of the parent company Davide Campari-Milano N.V. (Reuters CPRI.MI - Bloomberg CPR IM) have been listed on the Italian Stock Exchange since 2001. For more information: http://www.camparigroup.com/en. Please enjoy our brands responsibly.

- Appendix to follow -

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Consolidated net sales breakdown by brand cluster for the full year 2022

% on Group
sales
% change, of which:
total organic perimeter forex
Global Priorities 57.4% 26.4% 18.7% - 7.6%
Regional Priorities 25.4% 26.9% 18.7% 0.2% 8.0%
Local Priorities 8.3% 17.3% 5.7% 7.6% 4.0%
Rest of portfolio 8.9% 10.7% 6.7% -8.9% 12.9%
Total 100.0% 24.2% 16.4% -0.2% 7.9%

Consolidated net sales by geographic area for the full year 2022

% on Group
sales
% change, of which:
total organic perimeter forex
Americas 45.6% 32.5% 16.6% 0.1% 15.8%
Southern Europe, Middle East and Africa 27.7% 16.9% 18.2% -1.5% 0.2%
North, Central and Eastern Europe 19.4% 19.6% 14.9% 0.7% 3.9%
Asia Pacific 7.3% 17.9% 12.4% 1.0% 4.5%
Total 100.0% 24.2% 16.4% -0.2% 7.9%

Consolidated EBIT-adjusted by geographic area for the full year 2022

1 January-31 December
2022
% Change of which:
€ m % Split Total organic perimeter forex
Americas 263.2 46.2% 42.7% 19.7% 0.1% 22.9%
Southern Europe, Middle East and Africa 101.2 17.8% 42.4% 43.0% -0.2% -0.4%
North, Central and Eastern Europe 190.9 33.5% 17.3% 11.0% 1.1% 5.2%
Asia Pacific 14.7 2.6% -14.0% -9.7% -2.4% -2.0%
Total 569.9 100.0% 30.9% 19.1% 0.4% 11.5%

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Consolidated income statement for the full year 2022

FY 2022 FY 2021
€ million % € million % Change
Net sales 2,697.6 100.0% 2,172.7 100.0% 525.0
Cost of goods sold (1) (1,109.0) -41.1% (875.8) -40.3% (233.2)
Gross profit 1,588.6 58.9% 1,296.8 59.7% 291.8
Advertising and promotional costs (479.0) -17.8% (397.8) -18.3% (81.2)
Contribution margin 1,109.6 41.1% 899.0 41.4% 210.6
SG&A(2) (539.8) -20.0% (463.8) -21.3% (75.9)
Result from recurring activities
(EBIT-adjusted)
569.9 21.1% 435.2 20.0% 134.7
Other operating income (expenses) (58.3) -2.2% (34.3) -1.6% (24.0)
Operating result (EBIT) 511.5 19.0% 400.8 18.4% 110.7
Financial income (expenses) and adjustments (30.7) -1.1% (12.4) -0.6% (18.3)
Put option, earn out income (expenses) and
hyperinflation effects
0.7 - 0.2 - 0.5
Profit (loss) related to associates and joint
ventures
(6.6) -0.2% (0.1) - (6.5)
Profit before taxation 475.0 17.6% 388.6 17.9% 86.4
Profit before taxation-adjusted 538.0 19.9% 415.3 19.1 122.7
Taxation (143.5) -5.3% (105.6) -4.9% (37.9)
Net profit for the period 331.5 12.3% 283.0 13.0% 48.5
Net profit for the period-adjusted 386.3 14.3% 306.1 14.1% 80.2
Non-controlling interests (1.5) -0.1% (1.8) -0.1% 0.3
Group net profit 333.0 12.3% 284.8 13.1% 48.2
Group net profit adjusted 387.8 14.4% 307.9 14.2% 79.9
Depreciation and amortisation (90.5) -3.4% (79.7) -3.7% (10.7)
EBITDA-adjusted 660.3 24.5% 514.9 23.7% 145.4
EBITDA 602.0 22.3% 480.6 22.1% 121.4

(1) Includes cost of material, production and logistics costs.

(2) Includes selling, general and administrative costs.

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Consolidated balance sheet as of 31 December 2022

31 December 2022 31 December 2021
€ million € million
ASSETS
Non-current assets
Property, plant and equipment 748.1 560.3
Right of use assets 68.4 71.8
Biological assets 17.5 13.4
Goodwill 1,911.8 1,416.3
Brands 1,182.0 974.9
Intangible assets with a finite life 52.1 54.0
Interests in associates and joint ventures 36.0 26.1
Deferred tax assets 72.5 55.3
Other non-current assets 24.1 5.3
Other non-current financial assets 48.2 5.7
Total non-current assets 4,160.8 3,183.0
Current assets
Inventories 997.2 742.0
Biological assets 7.1 3.7
Trade receivables 308.5 290.4
Other current financial assets 18.9 15.8
Cash and cash equivalents 435.4 791.3
Income tax receivables 19.1 17.7
Other current assets 60.2 49.2
Total current assets 1,846.2 1,910.1
Total assets 6,007.1 5,093.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity
Issued capital and reserves attributable to Shareholders of the parent Company 2,675.0 2,371.8
Non-controlling interests 1.4 3.0
Total shareholders' equity 2,676.4 2,374.8
Non-current liabilities
Bonds 846.3 845.5
Loans due to banks 770.9 355.2
Other non-current financial liabilities 301.4 120.9
Post-employment benefit obligations 24.1 30.1
Provisions for risks and charges 35.6 34.4
Deferred tax liabilities 399.4 366.0
Other non-current liabilities 30.9 21.5
Total non-current liabilities 2,408.6 1,773.6
Current liabilities
Bonds - 50.0
Loans due to banks 107.0 198.1
Other current financial liabilities 29.3 73.9
Trade payables 541.7 394.6
Income tax payables 72.5 54.4
Other current liabilities 171.5 173.7
Total current liabilities 922.0 944.7
Total liabilities 3,330.7 2,718.3
Total liabilities and shareholders' equity 6,007.1 5,093.1

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Consolidated reclassified cash flow statement as of 31 December 2022

31 December 2022 31 December 2021
€ million € million
EBITDA 602.0 480.6
Effects due to IAS 29 application 6.7 4.5
Accruals and other changes from operating activities 26.6 64.7
Goodwill, trademark and sold business impairment 3.1 8.0
Income taxes paid (141.0) (79.1)
Cash flow from operating activities before changes in working capital 497.3 478.7
Changes in net operating working capital (83.9) 5.0
Cash flow from operating activities 413.4 483.7
Net interests paid (11.4) (15.6)
Capital expenditure (213.3) (135.7)
Free cash flow 188.7 332.3
Sale and purchase of brands and rights (129.9) -
(Acquisition) disposal of companies or business division (432.0) (3.1)
Dividend paid out by the Parent Company (67.6) (61.6)
Other changes (incl. net purchase of own shares) (112.0) 2.3
Total cash flow used in other activities (741.6) (67.0)
Change in net financial position due to operating activities (552.9) 265.4
Put option and earn-out liability changes (186.0) (3.5)
Increase in investments for lease right of use (9.8) (13.0)
Net cash flow of the period=change in net financial position (748.6) 248.9
Effect of exchange rate changes on net financial debt 27.1 24.0
Net financial position at the beginning of the period (830.9) (1,103.8)
Net financial position at the end of the period (1,552.5) (830.9)

Page 10 of 11

CAMPARI GROUP DAVIDE CAMPARI-MILANO N.V.

Parent company income statement

1 January-31 December 2022 1 January-31 December 2021
€ million € million
Net sales 986.4 777.2
Cost of goods sold (381.6) (302.9)
Gross profit 604.8 474.4
Advertising and promotional costs (85.6) (74.6)
Contribution after A&P 519.2 399.7
Selling, general and administrative expenses (166.9) (144.8)
Other operating income/ (expenses) (27.0) (15.1)
Operating result 325.3 239.8
Financial income (expenses) and adjustments (26.1) (20.5)
Dividends 331.9 14.9
Share of profit (loss) of associates and joint ventures (6.6) (2.2)
Profit before taxation 624.4 231.9
Taxation (108.4) (65.0)
Net profit for the period 516.1 166.9

Parent company balance sheet

31 December 2022 31 December 2021
€ million € million
Total non-current assets 3,266.0 2,923.7
Total current assets 568.5 519.4
Total assets 3,834.5 3,443.1
Total shareholders' equity 1,915.9 1,534.2
Total non-current liabilities 1,309.2 1,238.6
Total current liabilities 609.5 670.3
Total liabilities and shareholders' equity 3,834.5 3,443.1

Parent company cash flow

31 December 2022 31 December 2021
€ million € million
Cash flow generated from (used in) operating activities 273.4 221.1
Cash flow generated from (used in) investing activities 116.8 (1.8)
Cash flow generated from (used in) financing activities (449.7) (110.4)
Net change in cash and cash equivalents:
increase (decrease)
(59.6) 108.9
Cash and cash equivalents at the beginning of period 178.6 69.7
Cash and cash equivalents at end of period 119.0 178.6

Page 11 of 11

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