Positive first half 2017 results, in line with expectations Solid growth overall and in organic terms across all performance indicators, thanks to continuous improvement in sales mix driven by consistent outperformance of global and regional priorities1 in key markets The streamlining of non-core assets continues: Grand Marnier headquarters building in Paris sold for € 35.3 million H1 2017 RESULTS HIGHLIGHTS
  • Sales € 844.7 million (+13.5%, organic growth +6.8%). Global priorities +9.2%, Regional Priorities +11.5%
  • Contribution after A&P € 342.8 million (+15.2%, organic growth +6.8%, 40.6% of sales)
  • EBITDA adjusted2 € 191.7 million (+11.5%, organic change +3.4%, 22.7% of sales)
  • EBIT adjusted2 € 163.4 million (+11.6%, organic change +2.9%, 19.3% of sales)
  • Group net profit adjusted3 € 93.5 million (+21.1%). Reported group net profit: € 108.6 million, +61.7%
  • Net financial debt € 1,252.8 million as of June 30th, 2017 (€ 1,192.4 million as of December 31st, 20164), taking into account the Bulldog acquisition, the dividend payment, the sale of the Chilean winery and the liability management cash outflow
  • Agreement for the sale of the Grand Marnier headquarters building in Paris for € 35.3 million

Bob Kunze-Concewitz, Chief Executive Officer: 'We delivered very good results in the first half of 2017, delivering sustained growth, both in organic and reported terms, across all performance indicators. The solid organic growth was achieved after an acceleration in the second quarter of both sales and profitability. The sustained gross margin expansion, which benefitted from the continuous improvement of our sales mix by brand and region and also from a gradual recovery in the sugar business, helped contain the adverse phasing of A&P investments, skewed into the first half of this year. This effect, combined with investments in enhanced distribution capabilities, lead to the expected margin dilution in operating margin in the first half. Looking into the second half of the year, our outlook remains fairly balanced and unchanged. Macroeconomic environments in some emerging markets remain uncertain whilst the political uncertainty persisting in some regions might continue fuelling the volatility of major currencies against the Euro. Moreover, we believe that the progressive strengthening of the Euro against the US Dollar may have a more adverse impact in the second half of the year. Nevertheless, we remain confident in achieving a positive performance across key indicators for the year, driven by the outperformance of the high-margin global and regional priorities. We expect the gross margin to continue benefitting from the favourable sales mix despite being penalized by inflationary effects on material costs in emerging markets as well as rising prices in some raw materials

1 Global Priority brands include Aperol, SKYY, Campari, Wild Turkey, Grand Marnier (included in the perimeter effect until June 30th, 2017) and the Jamaican rums. The Regional Priorities include Espolòn, GlenGrant, Forty Creek, Bulldog, Averna, Braulio, Cynar, Frangelico and Cinzano.

2 EBITDA and EBIT before operating adjustments of € (5.0) million, mainly due to restructuring costs.

3 Group net profit before operating and financial adjustments of € (29.4) million pre-tax, and fiscal effects and tax benefits of overall € 44.5 million (of which fiscal effects on operating and financial adjustments and other tax adjustments of € 8.3 million, and 'Patent Box' tax benefit of € 36.2 million, consisting of € 12.0 million for the fiscal year 2015, € 15.5 million for the fiscal year 2016 and € 8.6 million for the first half 2017).

4 After reclassifications of € 7.2 million to the opening balance sheet as a result of the final purchase price allocation of the Grand Marnier acquisition values.

such as agave. Meanwhile, the Group's operating margin will benefit in the second half of the year from the gradual normalisation of A&P investments and structure costs, the latter also benefitting from the expected efficiencies generated by the Grand Marnier integration. The perimeter effect will reflect our exit from some non-core businesses, particularly the recently announced Carolans and Irish Mist disposal, which will result in an increased focus on the premium high-margin brands in core markets. Such disposals which, combined with the sale of some real estate assets, amounted to a total of approx. € 2285 million year to date, will contribute to a further acceleration in the reduction of our financial indebtedness, alongside the continuous healthy cash flow generated by our business.'

Milan, August 3rd, 2017-The Board of Directors of Davide Campari-Milano S.p.A. (Reuters CPRI.MI-Bloomberg CPR IM) approved the consolidated results for the first half year ended June 30th, 2017.

CONSOLIDATED P&L FOR THE FIRST HALF ENDED 30 JUNE 2017

H1 2017

€ million

H1 2016

€ million

Reported change

Organic change

Forex impact

Perimeter impact

Net sales

844.7

743.9

+13.5%

+6.8%

+1.8%

+5.0%

Contribution after A&P6

342.8

297.6

+15.2%

+6.8%

+1.5%

+6.9%

EBITDA adjusted2

191.7

172.0

+11.5%

+3.4%

+0.8%

+7.3%

EBIT adjusted2

163.4

146.4

+11.6%

+2.9%

+0.6%

+8.1%

EBITDA

186.8

157.4

+18.6%

EBIT

158.4

131.9

+20.1%

Group net profit

108.6

67.2

+61.7%

Group net profit adjusted3

93.5

77.3

+21.1%

RESULTS FOR THE FIRST HALF 2017

In the first half of 2017, Group sales totalled € 844.7 million, showing an increase of +13.5%. The organic sales growth was +6.8%, driven by the strong organic growth of high-margin global priorities (+9.2%) and regional priorities (+11.5%). We also benefited from a positive exchange rate effect of +1.8% as many currencies increased in valuation vs. last year such as the Brazilian Real, US Dollar, Russian Rouble and the Australian Dollar. The perimeter effect of +5.0% was driven by the combined effect of the Grand Marnier acquisition, consolidated as of July 1st, 2016, the termination of some distribution agreements and the sale of non-core businesses. The acquisition of Bulldog London Dry Gin (which closed in February 2017) did not produce any perimeter effects as the brand was already integrated into the Group's distribution network.

Advertising and Promotion spending (A&P) increased organically by +16.1% to € 162.7 million, at 19.3% of sales, due to the adverse phasing of advertising investments, skewed into the first half of this year. CAAP (Contribution after A&P) was up organically by +6.8% to € 342.8 million, at 40.6% of sales. Structure costs, i.e. selling, general and administrative costs, were € 179.4 million, at 21.2% of sales, increasing by +10.6% organically, driven by the strengthening of the Group's distribution capabilities (the enhancement of the Group's on-premise capabilities in the US, a newly established route-to-market in South Africa and Peru). EBITDA adjusted was up by +11.5% to € 191.7 million (+3.4% organic growth), at 22.7% of sales. EBIT adjusted increased by +11.6% to € 163.4 million (+2.9% organic growth), at 19.3% of sales. Operating adjustments were negative by € (5.0) million, mainly due to restructuring projects. EBITDA reached € 186.8 million, at 22.1% of sales. EBIT reached € 158.4 million, at 18.8% of sales.

5 Includes the sale of the wineries in Chile (€ 30.0 million) and in France (€ 20.5 million), the Carolans and Irish Mist brands (€ 141.7 million at the exchange rate as of the deal signing date) and the Grand Marnier headquarters building in Paris (€ 35.3 million pre-tax).

6 EBIT before SG&A.

Net financial costs were € 23.0 million, down by € 11.0 million.

Negative financial adjustments amounted to € (24.4) million due to the liability management transactions7.

Group net profit adjusted8 was € 93.5 million (+21.1%). Reported group net profit was € 108.6 million, an increase of +61.7%.

Within the perimeter effect (net sales of € 37.0 million and EBIT adjusted of € 11.9 million), the Grand Marnier acquisition contributed € 58.9 million in net sales, € 12.4 million in EBIT adjusted and € 14.2 million in EBITDA adjusted in the first half.

Net financial debt stood at € 1,252.8 million as of June 30th, 2017 (€ 1,192.4 million as of December 31st, 20164) taking into account the Bulldog acquisition, the dividend payment, the Chilean winery disposal and the liability management cash outflow9.

Cash inflows of the disposals of the Sancerre winery (closed on July 1st, 2017), the Carolans and Irish Mist brands (closed on August 1st, 2017) and real estate assets (to be closed in H2 2017) for an overall amount of

€ 197.5 million10 were not included in the net financial debt as of June 30th, 2017. ANALYSIS OF CONSOLIDATED SALES FOR THE FIRST HALF 2017

Looking at sales by region, the Americas (44.5% of total Group sales in H1 2017) posted an overall change of

+26.1%, with an organic growth of +7.6%, an exchange rate impact of +2.8% and a perimeter effect of

+15.7%. The US, the Group's largest market, accounted for 27.6% of total Group sales. In that market, sales registered a positive organic performance of +5.0%, despite the tough comparison base (+8.6%). Growth was driven by the Wild Turkey portfolio (+14.6%) and the Italian specialties, particularly Aperol (+42.1%) and Campari (+15.6%). Espolòn continues its very strong double-digit growth momentum. These results were partially offset by SKYY, which continues to be affected by a very competitive environment and weakness in the flavoured vodka category. Sales in Jamaica (4.4% of total Group sales) registered an organic change of

+10.7%, driven by good results in the rum portfolio, in particular Wray&Nephew Overproof, whilst Campari also performed well (up by high double-digits). Sales in Brazil (3.1% of total Group sales) registered an overall organic sales increase of +29.0%, favoured by an easy comparison base (-26.5% in H1 2016). Whilst macroeconomic conditions remain fragile, the Brazilian brands as well as SKYY, Aperol and Campari grew positively. Sales in Argentina (2.2% of total Group sales) registered an organic increase of +3.1%, thanks to a recovery in the second quarter, mainly driven by SKYY and Cynar which all grew in both volume and value terms, as well as Aperol growing double digit, albeit from a small base. Sales in Canada (3.2% of total Group sales) registered positive organic growth of +8.1%, driven by Forty Creek, SKYY Vodka and the aperitifs (Aperol, Campari). Sales in Mexico were up double-digit thanks to a good performance of SKYY ready-to- drink, the Jamaican rums, Aperol and Campari.

Sales in Southern Europe, Middle East and Africa11 (30.6% of total Group sales in H1 2017) were flat in comparison to H1 2016. The organic increase of +2.8% was entirely offset by a slightly positive exchange rate impact and a perimeter effect of -3.0%. The organic performance in the Italian market (23.1% of total Group sales) was up from last year (+1.4%) thanks to a recovery in the second quarter (+3.4%), which benefitted from the Easter shift. Aperol continues to grow by double-digit (+10.9%), while Campari, Braulio, Zedda Piras as well as the Freedea soft drink range, registered positive performances in the half. The region's other markets (7.6% of Group net sales) showed overall a very strong performance, driven by Spain (Aperol, Bulldog and Campari), South Africa (Aperol and Wild Turkey Bourbon) and France (Aperol and Campari).

7 Financial adjustment mainly due to the delta value between the purchase price of the bonds bought back and their nominal value.

8 Group net profit before operating and financial adjustments of € (29.4) million pre-tax, and fiscal effects and tax benefits of overall € 44.5 million (of which fiscal effects on operating and financial adjustments and other tax adjustments of € 8.3 million, and 'Patent Box' tax benefit of € 36.2 million, consisting of € 12.0 million for the fiscal year 2015, € 15.5 million for the fiscal year 2016 and € 8.6 million for the first half 2017).

9 Counter-value of the Bulldog acquisition of € 80.1 million (including the estimated earn-out), dividend payment of € 52.1 million, the value of the Chilean winery disposal of € 30.0 million and liability management cash outflow of € 23.2 million.

10 Including Sancerre winery of € 20.5 million, Carolans and Irish Mist of € 141.7 million and Grand Marnier headquarters building in Paris (pre-tax) of € 35.3 million.

11 Including Global Travel Retail.

These results helped compensate declines in Nigeria, which is impacted from sustained socio-economic instability. Global Travel Retail net sales were down by -5.8%, as one-off's in the second quarter negatively impacted the first half result, despite the strong performances of Aperol, Bulldog and GlenGrant.

Sales in North, Central and Eastern Europe (18.6% of total Group sales in H1 2017) increased by +12.6%

overall, driven by an organic change of +13.8%, an exchange rate effect of +1.0% and a perimeter effect of

-2.3%. Germany (8.3% of total Group sales) was slightly down, due to the weakness in agency brands and sparkling wines as well as the unfavourable comparable base in H1 2016 (+9.5%). Importantly, though, Germany continued to deliver a strong performance across Aperol (+19.9%), Averna (+12.8%) as well as growth in Frangelico, Wild Turkey bourbon and Bulldog. Sales in Russia (2.5% of total Group sales) registered a positive organic performance (+111.7%), with triple-digit growth in Mondoro and Cinzano sparkling wines, and double-digit growth in Cinzano vermouth. The Group remains cautious in regards to both the competitive environment and the local macro environment in Russia. The region's other markets (7.8% of Group net sales) registered an overall positive organic growth (+20.4%), mainly driven by UK (+39.5%, driven by Aperol, Campari, the Jamaican rums, Wild Turkey, Bulldog and GlenGrant), Belgium (Aperol, Bulldog and Crodino) as well as Poland and the Czech Republic.

Sales in Asia Pacific (6.3% of total Group sales in H1 2017) increased by +11.0% overall, with an organic change of +2.8%, an exchange rate effect of +5.7% and a perimeter effect of +2.6%. The organic performance in Australia (4.4% of total Group sales) registered a -2.7% decline driven by weakness in our Wild Turkey ready-drink portfolio and Wild Turkey bourbon impacted by strong competitive pressure as well as a tough comparison base (+12.6% in H1 2016). There were, however, very positive results from Aperol, Espolòn and GlenGrant. The other Asia Pacific markets (1.9% of Group net sales) registered an overall positive organic change thanks to a very good performance in both China and Japan, the latter benefitting from a recovery against the previous year's delays; in particular, sales were positive for Wild Turkey bourbon, Campari, SKYY, Aperol and Cinzano sparkling wines. In China, following the recent strengthening of our distribution with Camus, SKYY Vodka and GlenGrant continue to grow, albeit off a small base.

Global Priority sales (53.8% of total) grew by +9.2% in H1 2017. Aperol continued to outperform (+22.0%), driven by the sustained growth in the brand's core markets (Italy, Germany) as well as robust results from our high-potential markets such as France, USA, Switzerland, the UK, Australia, Spain, Czech Republic, Chile, Brazil, Russia, and Global Travel Retail. SKYY sales registered an organic change of -3.6%. The core US market performed negatively, impacted by the very competitive environment and persisting weakness in the flavours category. This was partially compensated by very good results in Brazil, Canada, Argentina and China. Campari continued its positive momentum, up +7.7% organically, driven by the very good performance in the USA, France, Austria, Brazil, Japan and Jamaica, as well as strong growth in Italy. The good performance was partially offset by shipment phasing in Germany and Argentina, while Nigeria continues to remain a difficult market. Wild Turkey, which includes American Honey, registered a positive organic change of +12.9%, driven by strong results in the core US market, thanks to the success of the recent marketing campaign, as well as to trading in Japan. The Jamaican rums, including Appleton Estate, J.Wray and Wray&Nephew Overproof, showed a positive organic growth of +3.4% with a positive performance in Jamaica, the US and the UK. Regional Priorities (15.7% of total) grew by +11.5% in H1 2017. Espolòn grew by +48.7% in the half, continuing to benefit from solid double-digit growth in the US (+48.5%), as well as having good results from new markets for the brand, such as Russia, Italy, Canada and Australia. GlenGrant registered positive growth of (+2.3%), particularly driven by South Africa, Australia, China, the UK and Switzerland. Forty Creek registered a change of -0.3%, with a good performance in the core Canadian market. The Italian bitters (Averna, Braulio and Cynar) continued to grow, up +2.3%, driven by good results from Braulio in Italy and Switzerland, strong double-digit growth of Averna in the USA and Germany as well as the strong growth of Cynar in the USA. Frangelico registered a slight decline, due to a temporary slow-down in the US market. Bulldog, entering the Regional brand portfolio in the first half of 2017, grew double-digit on the back of a good performance in Spain, Belgium, the US, the UK and Global Travel Retail. The Cinzano franchise showed

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