Davide Campari Milano N : 2021 First quarter results investor presentation

May 4, 2021

2021 First Quarter Results

Investor Presentation

Table of contents

Results Summary

Sales Results

Consolidated P&L

Net Financial Debt

Marketing Initiatives

Conclusion & Outlook

Annex

2

Results for first quarter ended 31 March 2021

STRONG DOUBLE-DIGIT GROWTH IN A SMALL QUARTER AMPLIFIED BY EASY

COMPARISON BASE AND EARLY EASTER EFFECT

		Q1 2021		Change vs. Q1 2020
								Organic change vs.
								Q1 2019
		€ million	Reported	Organic	Perimeter (1)	FX
Net sales		397.9	+10.5%	+17.9%	-0.8%	-6.6%	+12.1%
Gross margin		231.6	+10.8%	+17.5%	-0.2%	-6.5%	+7.2%
% on sales/ margin accretion (bps) (2)		58.2%	+20bps	-20bps	+30bps	+10bps		-260bps
EBIT adjusted (3)		68.5	+43.1%	+63.6%	-7.6%	-13.0%	+6.7%
% on sales/ margin accretion (bps) (2)		17.2%	+390bps	+520bps	-80bps	-50bps		-90bps
EBITDA adjusted (3)		87.6	+29.9%	+45.4%	-4.8%	-10.8%	+7.0%
% on sales/ margin accretion (bps) (2)		22.0%	+330bps	+440bps	-60bps	-50bps		-110bps
Group profit before taxation adjusted	(4)	64.1	+84.7%
Net financial debt at period end		1,067.9

1. Mainly including the effect of the discontinuation of agency brands, net of the tail-end effect of the acquisition of the French distributor (completed at the end of February 2020). For the latter, only the third-party brands managed by RFD were included in the perimeter effect
2. Basis points rounded to the nearest ten
3. Before operating adjustments of €(2.1) million in Q1 2021 (vs. €(5.6) million in Q1 2020)
4. Before total adjustments of €0.7 million in Q1 2021 (vs. €(4.2) million adjustments in Q1 2020)

3

	Growth driven by off-premise skewed markets and EMs
	GOOD MOMENTUM IN SPITE OF THIRD WAVE OF LOCKDOWNS DRIVEN BY HOME CONSUMPTION
> Net Sales	• Overall organic growth of +17.9% in a small quarter, as underlying momentum in core off-premise markets was amplified by an easy comparison
	base vs. Q1 2020 (-5.3%),an early Easter effect and some shipment phasing in selected markets. Continued sustained growth in the off-premise
	skewed markets, while on-premise and GTR were still heavily impacted by the renewed lock-downs
	- By geography: good momentum in core off-premise skewed US (+15.0%) and Canada (+28.2%), while Jamaica (+33.9%) also recovered
	alongside Latin American markets of Brazil (+60.8%), Argentina and Perù. Off-premise skewed Northern European markets continued to grow
	as did Australia (+22.6%), while on-premise skewed Italy and Spain as well as GTR continued to suffer the effects of the lockdowns
	- By brand: growth of global aperitifs held back by softness in on-premise markets in a low seasonality quarter. Strong continued momentum in
	Wild Turkey (+30.9%) and the Jamaican rums (+44.6%) as well as a recovery in Grand Marnier and SKYY Vodka. Regional priorities were up
	+26.4% overall, driven by strong growth from Espolòn (+63.9%), Forty Creek, The GlenGrant and sparkling wines, while Local Priorities were
	up +25.5%, driven by Aperol Spritz ready-to-enjoy, Campari Soda and Wild Turkey RTD
	• Overall organic growth of +12.1% vs. Q1 2019, showing solid business underlying momentum
	• Reported change of +10.5%, reflecting flattish perimeter effect of -0.8% or €(2.8) million, and a negative FX effect of -6.6% or €(23.8) million, driven by the
	devaluation of US Dollar and emerging markets currencies
> EBIT adj.	• Organic growth of +63.6% (+520 bps margin accretion), largely due to an easy comparison base (-35.3%,-620 bps margin dilution in Q1 2020). While
gross margin was slightly dilutive (-20bps) due to the unfavorable sales mix mainly driven by the outperformance of lower-marginEspolòn, the overall
	positive effect in EBIT adj. reflected growth in A&P, slightly behind topline, and an organic decrease in SG&A (-2.2%, +490bps accretion) compared with
	Q1 2020, which was not yet impacted by cost mitigation actions
	• Organic growth of +6.7% (-90 bps margin dilution) vs. Q1 2019, largely driven by unfavourable sales mix
	• Reported change of +43.1%, after negative perimeter effect of €(3.6) million (-7.6%) and negative FX effect of €(6.2) million (-13.0%)
> Profit before	• Group profit before taxation adjusted at €64.1 million, up +84.7%
taxation	• Group profit before taxation reported at €64.8 million, up +112.1%

• Net financial debt • Net financial debt at €1,067.9 million as of 31 March 2021, down €35.8 million vs. 31 December 2020 (€1,103.8 million), mainly driven by the positive free cash flow generated by the business
• • Net financial debt to EBITDA adjusted ratio(1) at 2.5x as of 31 March 2021, down from 2.8x as of 31 December 2020

(1) Calculated as net debt at period end divided by EBITDA adjusted for the last twelve months

4

Strong brand momentum continues in the off-premise

CONSUMER COMFORT WITH HOME MIXOLOGY DRIVING SOLID BRAND MOMENTUM

Total Campari US
Total Spirits Market
Aperol
Espolòn
Wild Turkey
SKYY Vodka
Grand Marnier
Campari
-60%	-40%	-20%	0%	20%	40%	60%	80%
Off-premisesell-out value growth in Q1 2021 vs. LY	Shipment value organic growth in Q1 2021 vs. LY

Total Campari Italy
Total Spirits Market
Campari
Aperol Spritz
Aperol
Crodino
Campari Soda
-35%	-25%	-15%	-5%	5%	15%	25%	35%	45%	55%	65%
Off-premisesell-out value growth in Q1 2021 vs. LY		Shipment value organic growth in Q1 2021 vs. LY

Total Campari UK

Total Spirits Market

Aperol

Wray&Nephew

Campari

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Off-premisesell-out value growth in Q1 2021 vs. LY Shipment value organic growth in Q1 2021 vs. LY

Total Campari Australia
Total Spirits Market
Campari
Espolòn
Aperol
Wild Turkey bourbon
Wild Turkey RTD
0%	20%	40%	60%	80%	100%
Off-premisesell-out value growth in Q1 2021 vs. LY	Shipment value organic growth in Q1 2021 vs. LY

5

Sources: US: Nielsen data XAOC+Total Liquor, YTD 12 W/E 27/03/2021; Italy: IRI Iper+super+LSP, YTD WE 28/03/2021; UK: Nielsen, L12W Data (Q1 2021), Total

Coverage Data to 27/03/2021; Australia: IRI YTD W/E 21/03/2021