Davide Campari Milano N : 2022 first quarter results investor presentation

Strong start to FY 2022 in a small quarter, thanks to positive underlying momentum coupled with phasing and favourable comparison bases

Org change (%)Q1 2022

€ million vs. Q1 2021 vs. Q1 2019

3-year CAGR

> Strong organic sales performance in Q1 2022 across all key markets and brand clusters thanks to healthy brand momentum and strong on-premise recovery in Europe, in particular, the high-margin aperitifs. The performance was helped also by phasing and easy comparison bases

Net sales

534.8

+29.4%

• +43.7% +12.8%

  > Strong organic EBIT growth and margin expansion in Q1 2022 driven by:

  EBIT adj. (1)

  114.3

  +58.5%

• +62.1% +17.5%

  Margin accretion (2)

  +390bps

  EBITDA adj. (1)

  134.7

• +46.5% +52.5% +15.1%

• • Slight dilution of gross margin as the very positive sales mix by brand and channel, in particular the outperformance of the high-margin aperitif portfolio driven by the on-premise re-opening, was able to largely offset the input cost inflation

  Group Profit before taxation adj.

  111.7

• • Sustained investments behind A&P and SG&A, delivering margin accretion thanks to strong topline

Net Debt/EBITDA adj. (x)

(3)

1.5x

> Net debt on EBITDA adj. to 1.5 times, with slight improvement vs. 2021 year end

• (1) Before operating adjustments of €(4.7) million in Q1 2022 (vs. €(2.1) million in Q1 2021)

• (2) Basis points rounded to the nearest ten

• (3) EBITDA adj of last twelve months

32

2

2

Strong momentum across all regions and brand clusters. On-premise skewed European markets benefited the most from the re-opening

By Region

Q1 2022 Net sales Organic Performance and Breakdown

By Brand

(1)

AMERICAS

GLOBAL PRIORITIESSEMEA

NCEEREGIONAL PRIORITIES

APAC

LOCAL PRIORITIES

Rest of Portfolio 9% (2)

Global Priorities 58%Americas 46%

Regional Priorities 24%

SEMEA 28%

Local Priorities 9%

NCEE 17%

Rest of portfolio 9%

APAC 8%

• (1) The brand clusters have been slightly revisited. Refer to the Annex for further details

• (2) Includes Agency brands & Co-packing 5%; Rest of own brands 4%

• (3) Includes Aperol Spritz ready-to-enjoy, Ancho Reyes & Montelobos, Bulldog, Forty Creek; Bisquit&Debouché, Trois Riviéres and Champagne Lallier

Net sales organic performance by market

• > USA +6.6%

  • • Positive start to the year against an overall tough comparison base with strong growth in Espolòn (+27.0%), Wild Turkey bourbon (+27.3%), Aperol

    (+51.2%) thanks to consumer recruitment which is well underway in key cities, Campari (+23.7%) thanks to resilient home consumption and renewed strength in the on-premise and Cabo Wabo. Grand Marnier shipments grew moderately despite a tough comparison base while the shipment performance of SKYY was impacted by the comparison base

  • • Organic growth of +24.3% vs. Q1 2019 (or 3-year CAGR of +7.5%)

• > CANADA +9.4%

  • • Positive overall growth largely thanks to Grand Marnier, Aperol and Campari despite a temporary decline in Forty Creek due to a tough comparison base

• > JAMAICA +20.1%

  • • Strong growth thanks to Campari and Appleton Estate

>

OTHERS +51.6%

• • Double-digit growth across the rest of the region (incl. Brazil, Mexico and Argentina) as markets recover from the pandemic in a small quarter

> ITALY +70.2%

• • Very strong start to the year, magnified by an easy comparison base and phasing, in particular Aperol (+101.4%), Campari (+118.7%), Campari Soda

  (+24.8%) and Crodino (+75.6%). Averna, Braulio and Cynar also registered very strong growth as the on-premise fully re-opened

• • Organic growth of +28.0% vs. Q1 2019 (or 3-year CAGR of +8.6%)

> FRANCE +38.8%

• • Positive underlying trends remain with growth mainly driven by Aperol, Riccadonna and Campari > OTHERS +56.0%

• • Positive performance across the other markets largely thanks to on-premise recovery combined with an easy comparison base, particularly Spain and South Africa. GTR was up +50.2% thanks to the continued lifting of travel restrictions across major markets as channel gradually recovers

Net sales organic performance by market

• > GERMANY +41.5%

  • • Very solid business performance in a low-seasonality quarter, benefiting also from favorable weather conditions. The performance was largely driven by growth in the aperitifs: Aperol (+79.2%), the newly launched Aperol Spritz ready-to-enjoy, Campari (+33.1%) as well as Crodino, albeit off a small base

  • • Organic growth of +39.6% vs. Q1 2019 (or 3-year CAGR of +11.8%)

• > UK +26.6%

  • • Positive overall performance mainly driven by continued positive trends in Aperol and Magnum Tonic

• > OTHERS +29.4%

  • • Overall positive performance across markets including Austria, Switzerland and Belgium, largely led by the aperitifs

  • • In Russia, the business has been reduced to the minimum necessary to just be able to support local Camparistas

> AUSTRALIA +5.4%

• • Good growth against a tough comparison base (Q1 2021: +22.6%) thanks to Wild Turkey bourbon, Wild Turkey RTD, Espolòn and Campari despite ocean freight constraints

• • Organic growth of +51.6% vs. Q1 2019 (or 3-year CAGR of +14.9%)

>

OTHERS +50.0%

• • Strong performance in South Korea (+105.7%), driven by The GlenGrant, X-Rated and high-end Wild Turkey offerings

• • China flattish due to snap lockdowns in relation to the zero-covid policy. Japan grew double-digits, with strong growth in brands such as The

  GlenGrant and Wild Turkey bourbon. Continued momentum elsewhere thanks to the Group's enhanced investments across all levers