Star Conference 2018 Milan, 27 March 2018 The Group 2 Our history - PowerPoint PPT Presentation

ANALYST PRESENTATION Star Conference 2018 Milan, 27 March 2018

The Group 2

Our history From 1950 to 1990 From 1990 to 2003 From 2003 to 2016 From 2016 Establishment of new Innovation in marketing, 1950 - Birth of Centrale del Latte d’Italia is the third most packaging and product, plants in Vicenza and Centrale del Latte di important hub in Italy: Casteggio. Extension as well as the Torino. healthy, visionary and of the product development of an With the aim of forward-looking. portfolio. interregional hub, were supplying, It represents the move Those were very to be seen in a world still hygienically to the third generation, ruled by the old economy turbulent years, as we processing and with the challenge of had to face the new markets, new model. delivering milk to be customers, new products emergence of the Turin together with directly consumed by as well as more private-label Rapallo and the Turin’s people. profitability to lay the manufacturing and acquisition of Vicenza. During these years, groundwork for future Stock exchange listing the financial crisis; UHT milk and the growth. those were years of and admission to the market liberalization consolidation, till the STAR segment (market making their were merging with segment of Borsa first steps Florence. Italiana's equity market dedicated to midsize companies with a 3 capitalization of less than 1 billion euros).

27/03/2018 Centrale del Latte d'Italia S.p.A. 4 The Group Centrale del Latte d’Italia S.p.A. . . 100 % 100 % Centrale del Latte della Toscana S.p.A. Centrale del Latte di Vicenza S.p.A. 24.9% 4

Shareholders at 22 march 2018 Finanziaria Centrale del Latte di Torino S.p.A.; 38,63% Famiglie Artom e Forchino Other Shareholders The Group is controlled by 36,97% private parties (historical families operating in the field), which are operationally involved in the company’s management, as well as by public bodies holding a minority interest. City of Pistoia; 5,26% City of Florence 12,31% Fidi Toscana 5 S.p.A. 6,83%

Mission Mission Enhancing our production with our local brands and distinguishing these latter on the basis of quality, reliability and territorial nature, in order to offer our clients only healthy and authentic products for a proper nutrition, which would improve the well-being of consumers, while promoting the agri-food chain of the Regions where our production sites are. 6

27/03/2018 Centrale del Latte d'Italia S.p.A. 7 Plants and Brands Location of the Plants Brands 7

Raw Material MKT 8

27/03/2018 Centrale del Latte d'Italia S.p.A. 9 9

27/03/2018 Centrale del Latte d'Italia S.p.A. 10 10

27/03/2018 Centrale del Latte d'Italia S.p.A. 11 11

Italian Market Oeverwiew 12

27/03/2018 Centrale del Latte d'Italia S.p.A. 13 Italian Market FRESH MILK € 543 mln ( feb 2018) UHT MILK € 830,5 mln ( feb 2018) COMPETITOR ANAL YSIS – MARKET SHARE VALUE – FEBRUARY 2018 Gruppo CLI Gruppo CLI Other 3,7% 7,7% 23,0% Parmalat Other 31,0% 29,5% Parmalat 22,2% Sterilgarda 3,4% Private Labels 22,4% Private Labels Granarolo Granarolo 19,8% 16,7% 20,8% Fonte: IRI Infoscan I+S 13

27/03/2018 Centrale del Latte d'Italia S.p.A. 14 Market overwiew – Fresh Milk Hyper + Super COMPETITOR ANAL YSIS – MARKET SHARE VALUE - FEBRAURY 2018 Piem – Lig – Ven - Tosc FRESH MILK € 145,3 mln (feb 2018) 30 25 Gruppo CLI 28,9% 20 Altri 15 32,1% 10 5 0 Parmalat 6,3% Private Granarolo Labels 11,9% 20,8% 2013 2014 2015 2016 2017 Fonte: IRI Infoscan I+S 14

27/03/2018 Centrale del Latte d'Italia S.p.A. 15 Market overwiew – UHT Milk Hyper + Super UHT MILK € 226,7 mln (feb 2018) COMPETITOR ANAL YSIS – MARKET SHARE VALUE - FEBRAURY 2018 Piem – Lig – Ven - Tosc 30 25 Gruppo CLI 15,2% 20 Other 25,3% 15 10 5 Parmalat Private 0 26,5% Labels 20,2% Granarolo 12,8% Fonte: IRI Infoscan I+S 2013 2014 2015 2015 2017 15

Keeping on growing in a local market by way of a strong leadership 16

Keeping on growing in a local market by way of a strong leadership The current scenario and our vision 1. We are now in a traditional and well-established market. A mature market is a guarantee if compared with unstable and uncertain markets. 2. Presence in 4 regions: Piedmont, Tuscany, Liguria and Veneto. Being present in 4 different areas is a positive factor, as we have a differentiation both in terms of geographical areas and customers; furthermore, every area has successfull features, such as the proximity of a large city and many excellent tourist destinations. 3. Private-label. Private-label products account for more than 25% in Italy. We consider this as a good element, because they have achieved a balance with the brands and allowed to further consolidate the leading brands, such as ours. They are also looking for partners who have always made the difference in terms of quality and reliability, exactly as we do. 17

Keeping on growing in a local market by way of a strong leadership How to grow? 1. Co-packing for strategical partner. The first productions with the brand of an important multinational company have been started. 2. Export. The internationalization experience of our group goes on. Following the crucial agreement with Alibaba, in China, the export activities to several Asian and Middle-Eastern countries move ahead and consolidate. 3. Online sales. A significant commercial boost will be given on the e-commerce sites of our important clients from the large scale distribution sector and, in the course of 2018, new cooperations with already consolidated market players will take place. 4. Food Service. The FS-channel has always played a special role, so we wish to secure it by the means of premium and distinctive products, such as our UHT cream, milk of local origin or organic milk. 5. Private-label. Important cooperations with national clients from the large scale distribution sector and discounters have already been started. 18

Marketing activities 19

27/03/2018 Centrale del Latte d'Italia S.p.A. 20 Marketing 2018 - Turin 20

27/03/2018 Centrale del Latte d'Italia S.p.A. 21 NEW PRODUCTS – EXTENSION LINE F&Q 21

27/03/2018 Centrale del Latte d'Italia S.p.A. 22 NEW PRODUCTS – EXTENSION LINE F&Q 22

27/03/2018 Centrale del Latte d'Italia S.p.A. 23 WEB & INFLUENCER CAMPAIGN 23

27/03/2018 Centrale del Latte d'Italia S.p.A. 24 2018 Calendar by Enrico Macchiavello 24

27/03/2018 Centrale del Latte d'Italia S.p.A. 25 New corporate books 25

27/03/2018 Centrale del Latte d'Italia S.p.A. 26 2018 Teachers’ courses - Turin 26

27/03/2018 Centrale del Latte d'Italia S.p.A. 27 2017 – 2018 Collecting points - Turin 27

27/03/2018 Centrale del Latte d'Italia S.p.A. 28 Marketing – Turin – 100% dairy-farms with certified health compliance!!!!! 28

27/03/2018 Centrale del Latte d'Italia S.p.A. 29 Yogurth - New flavors 29

27/03/2018 Centrale del Latte d'Italia S.p.A. 30 Fresh Eggs - Rapallo 30

27/03/2018 Centrale del Latte d'Italia S.p.A. 31 Pulcinella bottle by Emanuele Luzzati- Rapallo 31

27/03/2018 Centrale del Latte d'Italia S.p.A. 32 Other Marketing - Rapallo 32

27/03/2018 Centrale del Latte d'Italia S.p.A. 33 Marketing - Vicenza 33

27/03/2018 Centrale del Latte d'Italia S.p.A. 34 Marketing - Vicenza 34

27/03/2018 Centrale del Latte d'Italia S.p.A. 35 New Product Latte Verona - Vicenza 35

Marketing - Florence NEW SCREW-CAP TETRA TOP Easy opening, in a single move! • Easy opening and closing: there won’t be any membrane under the cap anymore • Safe from tampering: the safety ring will provide clear evidence of the first opening. UP TO NOW NEW OPENING IN 2 MOVES, OPENING IN A SINGLE MOVE, WITH SEALING MEMBRANE WITH SAFETY RING 36

27/03/2018 Centrale del Latte d'Italia S.p.A. 37 Marketing - Florence 37

27/03/2018 Centrale del Latte d'Italia S.p.A. 38 Marketing - Florence 38

International Exhibitions 2018 39

Projects for 2018 The Supply chain Project goes on: - The new automated warehouse in Vicenza has been inaugurated - Pursuing of investments in order to strengthen the production division. 40

Projects for 2018 New development project: - The construction work for the automated warehouse in Turin has been started - Revamping of the whole production plant and logistics 41

Projects for 2018 Implementation of SAP in Florence - Integration of the software system through the SAP business intelligence platform also at Centrale del Latte della Toscana S.p.A. 42

Organisation of Group Strategic Committee Central Management Administration & Marketing & Sales Tecnical Committee Management Control Committe Committee 43

Statements 44 44

Sales Net sales at 31 december 2017 plus 56% vs previous year. Consolidated sales 183.447 117.786 100.425 96.851 2014 2015 2016 2017 45 45