Lanson-BCC — Earnings Release 2010

Mar 23, 2011

PRESS RELEASE

GROWTH IN EARNINGS FOR 2010

Reims, Tuesday March 22nd, 2011 – 5:45 pm – LANSON-BCC recorded 305.15 million euros in consolidated revenues in 2010, up 10.6%, with EBIT climbing 12.6% to 43.20 million euros. The operating margin represented 14.2% of revenues. Consolidated net income totaled 19.19 million euros, an increase of 19.3%.

Consolidated earnings

Following a difficult year for Champagne in 2009, 2010 saw a clear upturn in sales, rising 8.9% to 319.5 million bottles (2010 12 months, source: CIVC). In this climate, LANSON–BCC has maintained its priority commercial focus: further strengthening the positionings of the main Brands, in line with the value strategy that has been applied for them for several years now.

IFRS (million euros)	2010	2009	Change
Revenues	305.15	276.04	+ 10.6%
EBIT	43.20	38.37	+ 12.6%
% of revenues	14.2%	13.9%
Financial expenses	-13.96	-13.99	+ 0.2%
Net income	19.19	16.08	+ 19.3%
% of revenues	6.3%	5.8%

In 2010, consolidated revenues totaled 305.15 million euros, compared with 276.04 million euros in 2009 (+ 10.6%). Excluding the brokerage subsidiary CGV, whose activity is traditionally subject to fluctuations, the Group's consolidated revenues came to 284.84 million euros, compared with 264.05 million euros in 2009 (+ 7.9%).

The Group recorded 43.20 million euros in EBIT, compared with 38.37 million euros (+ 12.6%), representing an operating margin of 14.2% in 2010, versus 13.9% in 2009. Excluding CGV, the Group's EBIT comes out at 42.36 million euros, compared with 37.89 million euros, giving a restated operating margin of 14.9% for 2010, versus 14.3% in 2009. This positive trend reflects the beginning of an upturn in volumes for the Brands (+ 4.9%), as well as the resulting price mix effect. The change in expenses remains under control (+ 1.4%).

Financial expenses primarily concern financing for the aging of stocks, coming in at -13.96 million euros, compared with -13.99 million euros in 2009, virtually stable.

Pre-tax earnings came to 29.24 million euros, compared with 24.39 million euros in 2009 (+ 19.9%).

Net income (Group share) is up + 19.3% from 16.08 million euros in 2009 to 19.19 million euros, giving a net margin for the Group of 6.3% in 2010, compared with 5.8% in 2009.

Strengthening of the financial structure

Shareholders' equity represents 174.13 million euros, compared with 153.67 million euros at December 31st, 2009 (+13%).

Consolidated net debt came to 468.20 million euros, compared with 470.66 million euros at December 31st, 2009 (491.94 million euros if we include in the outstanding figure at the end of 2009 the amount of the first installment for the 2009 harvest, which had exceptionally been deferred by the Champagne "Interprofession" organization from December 5th, 2009 to January 5th, 2010).

The book value of inventories is 411.94 million euros, compared with 425.93 million euros at the end of 2009. LANSON-BCC would like to remind you that the Group has an ongoing policy to not include financial expenses in the book value of inventories. 72% of the average financial debt is based on fixed rates, with the average rate for consolidated financial debt coming out at 2.8%.

Gearing has continued to improve, moving from 5.68 at the end of 2006 with the acquisition of Maison Burtin and Champagne Lanson, to 2.69 at the end of 2010.

2010 dividend

LANSON-BCC's Board of Directors will be submitting a proposal for approval at the Combined General Meeting on May 19th, 2011 for the payment of a dividend of 0.40 euros per share, with a payout ratio representing 11.6% of consolidated net income.

Outlook

LANSON-BCC is reasserting its long-term value development strategy. The complexity of the current global situation simply confirms the relevance of the Group's approach to its development. The figures for 2010 highlight the benefit of its ongoing policy, moving in the right direction, taking action across all the Champagne wine market segments. This requires it to maintain the outstanding quality of its wines, with rational production tools and effective management of the various Houses.

2011 has seen quite a dynamic start to the year, confirming the beginning of a return to development. At this stage in the year, any excessive optimism must however be tempered, since the resumption of better growth will not rule out the possibility of there continuing to be a strong level of competition.

Additional information

The consolidated financial statements for 2010 have been approved today by the Board of Directors. The audit procedures on the consolidated accounts have been completed. The certification report will be issued once the necessary procedures have been finalized for filing the 2010 registration document.

LANSON-BCC fully owns seven Champagne Houses: - Champagne Lanson (Reims), the prestigious international brand. - Champagne Chanoine Frères (Reims), wines intended primarily for the	Euronext Compartment B ISIN: FR0004027068 Ticker: LAN Reuters: BCCP.PA
European mass retail market (Chanoine brand), notably with the Tsarine Cuvée range.	Bloomberg: LAN:FP www.lanson-bcc.com
- Champagne Boizel (Epernay), French mail-order market leader, with wines distributed in the traditional sector for international markets. - Maison Burtin (Epernay), a European mass retail supplier and owner of the Besserat de Bellefon brand, distributed through traditional networks (restaurants, wine stores). - Champagne De Venoge (Epernay), sold on selective retail markets, notably with its Louis XV grande cuvée. - Champagne Philipponnat (Mareuil sur Aÿ), which owns the prestigious Clos des Goisses, with wines exclusively available through selective retail channels, primarily in leading restaurants. - Champagne Alexandre Bonnet (Les Riceys), owner of a vast vineyard (wine sold in traditional sectors).	LANSON-BCC Nicolas Roulleaux Dugage Tel: +33 3 26 78 50 00 investisseurs@lanson-bcc.com CALYPTUS Cyril Combe Tel: +33 1 53 65 68 68 cyril.combe@calyptus.net