Parmalat : The Board of Directors approves the 2016 Draft Financial Statements

• POSITIVE RESULTS IN TERMS OF GROWTH: IMPROVEMENT OF ALL MAIN ECONOMIC-FINANCIAL BUSINESS INDICATORS

  - AT CONSTANT EXCHANGE RATES AND SCOPE OF CONSOLIDATION AND EXCLUDING VENEZUELA, GIVEN THAT COUNTRY'S CRITICAL SITUATION, NET REVENUE GREW BY 2.5% AND EBITDA INCREASED BY 6.6%, BUT PROFIT FOR THE YEAR CONTRACTED (-15.5%) DUE TO WRITEDOWNS OF INTANGIBLE ASSETS IN BRAZIL REQUIRED BY THE IMPAIRMENT TEST

• AT CURRENT EXCHANGE RATES AND SCOPE OF CONSOLIDATION AND INCLUDING VENEZUELA, NET REVENUE GREW BY 1.1%; EBITDA INCREASED BY 3.2% (SHARP GAINS IN THE NORTH AMERICA AND AFRICA AREAS); THE PROFIT FOR THE YEAR DECREASED (-45.6%)

- MOTION TO DISTRIBUTE 27.7 MILLION EUROS IN DIVIDENDS (0.015 EUROS PER SHARE)

- ORDINARY SHAREHOLDERS' MEETING CONVENED FOR APRIL 28

- 2017 GUIDANCE: GROWTH OF ABOUT 4% FOR NET REVENUE AND EBITDA AT CONSTANT EXCHANGE RATES AND EXCLUDING THE VENEZUELA SUBSIDIARY

1 As required by IFRS 3, having completed the purchase price allocation in 2016, the income statement and statement of financial position balances at December 31, 2015 were restated to take into account, at the date of acquisition, the definitive fair value of the acquired assets and assumed liabilities.

Milan, March 3, 2017 - The Company's Board of Directors, meeting today under the Chairmanship of Gabriella Chersicla, approved the draft financial statements at December 31, 2016, the highlights of which are reviewed below, and resolved to convene an Ordinary Shareholders' Meeting.

In 2016, the global economy was characterized by modest growth and an uneven trend. On the currency front, most of the year was characterized by the uncertainty dictated by the potential outcome of the U.S. presidential election and the modalities of the expected rise in U.S. interest rates.

During most of the year, a global surplus in the supply of raw milk held down milk prices, albeit with significant regional differences and with indications of a trend reversal in some areas, beginning at the end of the third quarter.

Among the main countries in which the Group operates, Brazil, while continuing to be in a recession, began to show positive signs. In Venezuela, the situation remains highly critical due to the state of uncertainty, both at the economic and political level, and the high consumer price inflation.

More specifically, net revenue increased to 6,489.4 million euros, up 73.3 million euros (+1.1%) compared with 6,416.1 million euros in 2015. With data at constant exchange rates and comparable scope of consolidation2 and excluding the Venezuelan subsidiary, the gain in net revenue amounts to 128.8 million euros (+2.5%), with a positive contribution from all of the regions in which the Group operates, except for Europe, where net revenue were down slightly.

The performance of the main geographic areas is reviewed below.

In 2016, the Europe sales region reported net revenue 1,073.4 million euros and EBITDA of

108.6 million euros.

The significant devaluation of the ruble versus the euro had a negative impact on the region's net revenue and EBITDA amounting to about 7.9 million euros and 0.3 million euros, respectively.

Results with data at constant exchange rates show net revenue decreasing by 1.1% and EBITDA contracting by 2% compared with the previous year.

In Italy, volumes contracted in the dairy market, mainly due to a negative trend in the milk and UHT cream segments. Despite this, the local subsidiary strengthened its leadership position in the milk category (considering all sales channels) thanks primarily to an outstanding performance by the Zymil brand in the UHT milk and pasteurized milk segments. In the UHT cream category, Parmalat consolidated its first-place competitive position and increased its market share.

2 A comparable scope of consolidation is obtained by excluding the results of the activities acquired in Brazil (Elebat), Mexico (Esmeralda Group) and Australia (Longwarry and Parmalat Australia YD).

In 2016, the North America sales region generated net revenue of 2,489.5 million euros and EBITDA of 249.2 million euros.

The decrease in the value of the Canadian dollar versus the euro had a negative impact on the region's net revenue and EBITDA amounting to about 52 million euros and 4.4 million euros, respectively.

With data at constant exchange rates, the net revenue and EBITDA of the North America sales region increased by 3.7% and 16.3%, respectively, compared with the previous year.

In the United States of America, Parmalat achieved excellent results, reporting sharply higher sales volumes compared with the previous year, thanks primarily to a positive performance in the cheese category (which accounts for about 80% of total volumes) and increased sales of ingredients, mainly in the second half of the year.

In a year characterized by a steady increase in consumption in the cheese market (considering the market perimeter within which the local subsidiary operates), Parmalat confirmed its leadership position in the soft ripened cheese, chunk mozzarella and ricotta segments and held unchanged its competitive positions in the other segments in which it operates (fresh mozzarella, feta cheese, snack cheese, gourmet cheddar cheese and gourmet spreadable cheese).

In Canada, even though it operates in markets characterized by strong competitive pressure, the local subsidiary confirmed its standing as the second player in the cheese market, while holding steady its competitive positions in the milk and yogurt segments.

The Latin America sales region includes the subsidiaries that operate in Brazil, Mexico Venezuela, Colombia, Ecuador, Paraguay and some other companies. The Group strengthened its presence in Brazil, with the acquisitions of LBR (January 2015) and Elebat (July 2015), as well as in Mexico, Uruguay and Argentina, with the acquisition of the Esmeralda Group (in the second quarter of 2015).

In 2016, excluding the effect of hyperinflation in Venezuela, the region's net revenue totaled 1,387.4 million euros and EBITDA amounted to 52.9 million euros.

At constant exchange rates and comparable scope of consolidation, excluding the acquisitions completed in 2015 and the contribution of Venezuela, the results for the year showed net revenue up 1.6% and EBITDA down 3.8% compared with the previous year.

In Brazil, viewed in the context of a still ongoing reorganization process, aimed at normalizing all of the acquired activities and achieving synergies and optimizations both in the production processes and in the reference markets, the overall economic results achieved in 2016 were positive. The local subsidiary confirmed its position as the second player in the cheese segment and continued to hold a significant market share in the UHT milk category.

In Mexico, the local subsidiary is implementing a reorganization of its production activities, accompanied by investments to increase production capacity, aimed at achieving a more effective use of local facilities and improving quality. In addition, distribution logistics were reorganized and the product portfolio was strengthened. The year 2016 was a particularly positive one for the cheese segment, the local subsidiary's main market, with positive trends both on a volume and value basis.

In Venezuela, where the situation remains highly critical both from an economic and political standpoint, the local subsidiary suffered a significant reduction in sales volumes.

In the Africa sales region, net revenue totaled 397.3 million euros and EBITDA amounted to

33.1 million euros in 2016.

The devaluation versus the euros of all of the local currencies, the South African rand in particular, produced a negative translation effect of about 62 million euros on net revenue and

4.5 million euros on EBITDA.

With data at constant exchange rates, net revenue and EBITDA showed gains of 9.8% and 5.9%, respectively.

In 2016, the Africa sales region was adversely affected by instability in the performance of the local currencies and in international commodity prices, in addition to a particularly unfavorable economic environment in Zambia and Mozambique.

In South Africa, Parmalat continues to hold a strong leadership position in the flavored milk segment and confirmed its second-place competitive position in UHT milk. In the cheese market, the local subsidiary strengthened its status as the top player in the cheese slices and hard cheese segments, while consolidating its second-place competitive position and increasing its market share in the yogurt category.

In the Oceania region, net revenue totaled 1,058.4 million euros and EBITDA amounted to 61.9 million euros in 2016.

The slight loss in the value of the Australian dollar versus the euro had a negative translation effect of about 7 million euros on net revenue and 0.4 million euros on EBITDA.

With data at constant exchange rates and comparable scope of consolidation - excluding Longwarry, acquired in the first quarter of 2015, and the yogurt and dairy dessert activities acquired in first quarter of 2016 through the Parmalat Australia YD subsidiary - net revenue increased slightly compared with the previous year, but profitability contracted by 12.5%.

It is worth mentioning that the Australian operations are in the process of reorganizing their activities, mainly through a program of acquisitions.

Parmalat confirmed its leadership position in the pasteurized milk category and retained its second-place competitive position in the flavored milk and UHT milk segments, thanks mainly to the positive results achieved with the Pauls brand. The local subsidiary also retained its second- place position in the yogurt market and strengthened its position as the leader in the dessert market, posting impressive growth.

The profit for the year amounted to 79.4 million euros, or 66.7 million euros less than the 146.1 million euros earned in 2015.

With data at constant scope of consolidation and excluding the Venezuelan subsidiaries, the profit for the year showed a decrease of 25.6 million euros.

This reduction is mainly attributable to the writedown of intangible assets required by the impairment test and to lower income from litigation settlements, offset in part by a decrease in net financial expense.

The net financial position amounted to 334.4 million euros, or 23.6 million euros more than the

310.8 million euros reported at December 31, 2015. This change is the result of the following factors: the cash generated by operating activities for 154.2 million euros (137.4 million euros in 2015); the cash absorbed by non-recurring transactions for 43.5 million euros, mainly in connection with the acquisition of yogurt and dairy dessert activities in Australia and the payment to BRF S.A. of the price adjustment on the net financial position and working capital of Elebat Alimentos S.A.; the cash absorbed by financing activities for 74.6 million euros, mainly attributable to the temporary investment by the Parent Company of a portion of its liquid assets in instruments maturing after one year; the payment of dividends for 33 million euros, and a positive translation effect of 8.9 million euros.