Davide Campari Milano N : Annual report at 31 December 2020 (disponibile solo in inglese)

DAVIDE CAMPARI-MILANO N.V.

ANNUAL REPORT

AT 31 DECEMBER 2020

Adopted by the Annual General Meeting of Davide

Campari-Milano N.V. on 8 April 2021

Campari Group-Annual report at 31 December 2019

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Campari Group-Annual report at 31 December 2020

Index
About this report....................................................................................................................................................	5
Key Highlights........................................................................................................................................................	7
Corporate bodies ...................................................................................................................................................	9
Management report for the year ending 31 December 2020 ...........................................................................	11
Updates on the coronavirus, Covid-19 outbreak..........................................................................................	11
Main brand-building activities ........................................................................................................................	13
Significant events of the year .........................................................................................................................	17
Subsequent events ..........................................................................................................................................	21
Group Financial Review ..................................................................................................................................	22
Sales performance .........................................................................................................................................	22
Statement of profit or loss ..............................................................................................................................	31
Profitability by business area..........................................................................................................................	36
Operating working capital ...............................................................................................................................	39
Reclassified statement of cash flows .............................................................................................................	40
Net financial debt............................................................................................................................................	42
Capital expenditure.........................................................................................................................................	44
Reclassified statement of financial position ...................................................................................................	44
Reconciliation of the Company and Group net profit and shareholders' equity .............................................	45
Full year 2020 conclusion and outlook..........................................................................................................	46
Definitions and reconciliation of the Alternative Performance Measures (APMs or non- GAAP measures)
to GAAP measures...........................................................................................................................................	47
Investor information ........................................................................................................................................	52
Governance ..........................................................................................................................................................	57
Overview of Campari Group's business........................................................................................................	57
Risk management and Internal Control System ...........................................................................................	71
Non-Financial Disclosure................................................................................................................................	79
Global Sustainability Strategy ........................................................................................................................	79
Note on methodology .....................................................................................................................................	82
Corporate Governance ..................................................................................................................................	118
Special Voting Mechanism ...........................................................................................................................	118
Major Shareholders ......................................................................................................................................	118
Corporate Governance Report .....................................................................................................................	119
Report of the Non-Executive Directors.........................................................................................................	132
Statement and Responsibilities in respect to the annual report ...................................................................	135
Remuneration report.....................................................................................................................................	137
Campari Group-Consolidated financial statements at 31 December 2020..................................................	150
Davide Campari-MilanoN.V.-Company only financial statements at 31 December 2020 ..........................	238
Other information ..............................................................................................................................................	298
Independent auditor's report ........................................................................................................................	298

Disclaimer

This document was not made available to the public with a signed version, which is retained at the Group corporate office.

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Campari Group-Annual report at 31 December 2020

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Campari Group-Annual report at 31 December 2020

About this report

Note on presentation

The annual report at 31 December 2020 was prepared in in accordance with the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), as adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code. The designation IFRS also includes International Accounting Standards ('IAS') as well as all the interpretations of the International Financial Reporting Interpretations Committee ('IFRIC'), formerly the Standard Interpretations Committee ('SIC').

Adaptation plan pursuant to Articles 15 and 18 of the Market Regulations

In accordance with Articles 15 and 18 of Consob Regulation 20249 of 28 December 2017 and subsequent amendments concerning 'conditions for listing shares of companies that control companies established and governed by laws of non-EU countries', the Parent Company Davide Campari Milano N.V. (the 'Company' or 'Parent Company' or 'Campari' and together with its subsidiaries the 'Campari Group' or the 'Group') has identified its significant subsidiaries as defined Article 15(2) of the above-mentioned Regulation, and verified that the conditions set out in paragraphs b) and c) of Article 15 have been met.

Forward-looking statements

Campari Group's management report contains forward-looking statements that reflect management's current view of future development of the Group. In some cases, words such as 'may', 'will', 'expect', 'could', 'should', 'intend', 'estimate', 'anticipate', 'believe', 'outlook', 'continue', 'remain', 'on track', 'design', 'target', 'objective', 'goal', 'plan' and similar expressions are used to identify forward-looking statements that contain risks and uncertainties which are beyond the control of the Group and which call for significant judgment. Should the underlying assumptions turn out to be incorrect or if the risks or opportunities described materialize, the actual results and developments may materially deviate (negatively or positively) from those expressed by such statements. The outlook is based on estimates that Campari Group has made on the basis of all the information available at the time of completion of this annual report.

Factors that could cause the actual results and developments to differ from those expressed or implied by the forward-looking statements are included in the section 'Risk management and Internal Control System' of this annual report. These factors may not be exhaustive and should be read in conjunction with the other cautionary statements included in this annual report. Forward-looking statements made in this report shall be evaluated in the context of these risks and uncertainties.

Campari Group does not assume any obligations or liability in respect of any inaccuracies in the forward-looking statements made in this annual report or for any use by any third party of such forward-looking statements. Campari Group does not assume any obligation to update any forward-looking statements made in this annual report beyond statutory disclosure requirements.

Information on the figures presented

All references in this annual report to 'Euro' and '€' refer to the currency introduced at the start of the third stage of European Economic and Monetary Union pursuant to the Treaty on the Functioning of the European Union.

For ease of reference, all the figures in this annual report are expressed in millions of Euro to one decimal place, whereas the original data is recorded and consolidated by the Group in Euro. Similarly, all percentages relating to changes between two periods or to percentages of net sales or other indicators are always calculated using the original data in Euro. The use of values expressed in millions of Euro may therefore result in apparent discrepancies in both absolute values and data expressed as a percentage.

For information on the definition of the alternative performance measures used, see paragraph 'Alternative performance measures' in the dedicated paragraph of this annual report.

The language of this annual report is English. Certain legislative references and technical terms have been cited in their original language in order that the correct technical meaning may be ascribed to them under applicable law.

European Single Electronic Format requirements

Pursuant to article 4 of the Transparency Directive1, starting from the financial year 2020 the annual financial reports of companies listed on European stock exchange would be prepared in compliance with the European Single Electronic Format, or ESEF. The entire annual financial report, i.e. including ad minima the audited financial statements and the management report, shall be prepared in xHTML format. In addition, issuers preparing IFRS consolidated financial statements shall mark up those using Inline XBRL. To facilitate the introduction of the new rules, for annual reports for the year ending 31 December 2020, only the consolidated primary financial statements and certain administrative information meet the ESEF requirements. Campari Group manage ESEF by leveraging on a dedicated IT software implemented during the year, allowing to comply with the new regulation. However, during December 2020, the European Parliament and the Council included an amendment to the Transparency Directive allowing for a 1-year postponement of the obligation for listed companies to draw up and publish their annual financial reports in accordance with the ESEF. The ESEF postponement will be adopted as a supplementary measure to help the recovery from the Covid-19 pandemic. Following the Dutch Ministry of Finance informing in January 2021 the House of Representatives that the issuers are given an additional year to make their annual financial reports generally available in accordance with the ESEF, Campari Group will comply with it making available according to ESEF requirements, the annual reports ending from 31 December 2021 onwards.

1 Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC.

- Relazione finanziaria annuale al 31 dicembre 2019

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