De' Longhi S.p.A.: Annual Shareholders' meeting and Board of Directors' meeting of April 11, 2017

PRESS RELEASE

De'Longhi S.p.A.

The Shareholders' annual general meeting, held today in ordinary and extraordinary session:

1. approved the consolidated 2016 results, confirming the data approved by the BoD held on March 2nd, 2017:

   • Revenues at € 1,845.4 million, -2.4% compared with 2015, about stable in organic terms1(-0.2%);

   • Ebitda before non-recurring items increased to € 295.4 million, equal to 16.0% of revenues (€ 287.8 million equal to 15.2% of revenues in 2015), despite higher media investments for about € 11 million;

   • Net income at € 167.4 million, up by +12,0%;

   • Positive net financial position at € 307.6 million, improving by € 118.8 million, including gross liquidity worth € 461.4 million.

2. approved a dividend of € 0.80 per share;

   The Shareholders' meeting approved the distribution of a dividend € 0.80 per share, equal to a pay-out of approximately 71%. The ex dividend date is April 24, 2017, the record date is April 25, 2017 and the dividend will be payable from April 26, 2017.

3. gave a positive opinion on the Remuneration Policy for the year 2017;

4. renewed the authorization to purchase and dispose of the Company's own shares.

5. extraordinary session: approved the proposed amendment to Art. 5-bis of the Articles of Association in order to introduce the "increased voting rights";

   The AGM, held today in extraordinary session, also approved the proposed amendment to Art. 5-bis of the Articles of Association in order to introduce the "increased voting rights" in accordance to article 127 quinquies of TUF.

   1

   "Organic" stands for at constant exchange rates and excluding the impact of derivatives. 2016 consolidation perimeter includes NPE srl, following the lease of

   company agreement as per the press release issued on 23/09/2016.

   2016 results summary, business review and guidance
   overview	The market for Small Domestic Appliances was characterized, in 2016, by a distinctly divergent trend among geographical areas and product lines, as initially foreseen by the Group's management. On the one hand, the Asia-Pacific-Americas area, the main markets of Continental and Eastern Europe, espresso coffee makers and Braun products recorded positive growth rates, at times in the 2-digits; on the other, the Middle-East-India-Africa area, Russia, the UK and some categories of food preparation declined. Moreover, the Group decided to rationalize the product portfolio, eliminating selected less profitable items, and to review the commercial organization in markets such as Turkey and Scandinavia; such actions had a temporary negative impact on sales volumes but laid the foundations for an even more solid future growth path. From the standpoint of revenues, about stable as compared with 2015 in organic terms, 2016 is therefore a transitional year, before the expected acceleration in 2017. In 2016 the Group's management focused on protecting profitability and cash flow generation, aiming to contrast the mentioned market weakness and to compensate for the negative impact of exchange rates, also through price increases. The improvement in Ebitda and the significant cash flow generation testify to the effectiveness of such strategy.
   revenues	Revenues at € 1,845.4 million in 2016 (-2.4%), about stable (-0.2%) in organic terms.

   revenues

   chg % chg% organic (LFL)

   Q4 (1° October - 31 December)
   2016	2015

   Full Year

   2016 2015

   (Eur million unless specified)

   1,845.4	1,891.1
   -2.4%
   -0.2%

   686.3 676.3

   1.5%

   3.1%

   Revenues - million Euro	FY 2016% chg. % chg. at constant FX	Q4- 2016var. % % chg. at constant FX
   North East Europe South West Europe	459.8 -4.1% 0.6% 804.5 0.2% 0.5%	184.8 -4.3% 0.8% 302.0 2.4% 2.6%
   EUROPE	1,264.2 -1.4% 0.6%	486.8 -0.3% 1.9%
   MEIA (Middle East /India/Africa)	140.8 -21.8% -20.4%	47.6 -12.4% -12.4%
   APA (Asia/Pacific/Americas)	440.4 2.7% 6.2%	151.8 13.4% 14.1%
   TOTAL REVENUES	1,845.4 -2.4% -0.2%	686.3 1.5% 3.1%

   markets

   Regarding the geographical areas, the good trend in APA (Asia-Pacific- Americas), and the slight growth in Europe counterbalanced the reduction in the MEIA area.

   APA shows the strongest growth, sustained by the USA, Japan, China and Hong Kong, despite lower revenues in other markets including Brazil.

   In Europe, the South-West region recorded limited growth, due especially to Germany, Spain and Portugal, Italy and Austria, among others. The North-East area experienced lower revenues in markets such as the UK and Russia, together with 2-digit growth rates in Poland and other Eastern European markets.

   In the MEIA area (Middle East-India-Africa), the unfavorable economic and geo-political conditions continued to limit consumption and contributed to determine a reduction in revenues, mostly in Saudi Arabia, UAE and Egypt.

   products Revenues by line of product show, over 2016, the outperformance of fully automatic and manual espresso coffee makers, which grew at least at high-single-digit rates and more than compensated for the lower revenues of single-serve systems, down due to the challenging comparison with 2015, which saw the launch of the Lattissima Touch model, and the increased level of competition in the segment.

   As regards the cooking and food preparation segment, Braun products grew whereas Kenwood revenues declined, mostly in the kitchen machine category, heavily impacted by weaker demand in important markets such as Russia, the Middle East and UK. To contrast such trend, in 2016 the Group has introduced several product innovations in the main categories, including new a new power blender, slow juicer and cooking food processor, from which it expects a tangible contribution starting with 2017.

   Revenues from portable conditioning and heating were slightly up as compared with 2015, whereas the reduction in ironing, in part related to the transition process from the De'Longhi brand to Braun, was mitigated by growth in the more profitable ironing systems.

   margins The Group's strategy to counterbalance market volatility and the negative impact of foreign exchange rates with improvements in price and mix, translated into a significant improvement in margins, despite the higher efforts in terms of advertising & promotion. Higher industrial efficiencies, lower transportation and raw material costs and lower non- industrial operating costs also contributed to such results.

   • Net industrial margin at € 905.8 million, improving from 47.8% to 49.1% of revenues;

   • Ebitda before non-recurring items was up by 2.7% and reached €

     295.4 million, or 16.0% of revenues comparing with 15.2% of the previous year. After non-recurring items for about € 3.5 million, Ebitda stood at € 292.0 million, 15.8% on revenues (15.1% in 2015). At constant exchange rates and excluding the effect of hedging, Ebitda before non-recurring items in 2016 would have been € 293.4 million, with a negative impact of exchange rates and hedging worth

     € -33.1 million comparing with 2015 Ebitda excluding hedging (which benefited from positive hedging for a total of € 35.2 million).

   • Operating result (Ebit) amounted to € 239.0 million, improving from 12.3% to 13.0% of revenues;

   • It should be noted that in the year the Group recorded non-recurring items for € 3.5 million.

net indust rial margin

% of revenues

Full Year

2016 2015

(Eur million unless specified)

Ebit da before non recur. it ems

% of revenues

Ebit da

% of revenues

Ebit

% of revenues

Net Income

% of revenues

financialchargesNet financial charges, equal to € 27.6 million, were down by € 6.0 million as compared with 2015, following a reduction in banking interest, securitization costs and foreign exchange charges.

The adjustment of the valuation at fair value of the earn-out due in relation to the acquisition of the perpetual license of the Braun brand