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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Italian Wine Brands S.p.A.    IWB   IT0005075764

ITALIAN WINE BRANDS S.P.A.

(IWB)
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Italian Wine Brands S p A : 2020/06/30 – IWB Group – Half year financial report

10/26/2020 | 08:25am EST

CONSOLIDATED HALF-YEAR FINANCIAL

REPORT

30 JUNE 2020

ITALIAN WINE BRANDS S.P.A.

Registered office in Milan, Via Abruzzi, 94

joint-stock company with subscribed and paid-up share capital of €879,853.70

Tax Code Companies Reg. No. 08851780968

Registered in the Companies Register of MILAN

R.E.A. no. 2053323

www.italianwinebrands.it

TABLE OF CONTENTS

Composition of the Administrative and Supervisory Bodies

3

Directors' Report on Operations

4

Consolidated Annual Financial Report

Consolidated Statement of Financial Position

24

Comprehensive Income Statement

25

Statement of Changes in Shareholders' Equity

26

Statement of Cash Flows

27

Form and content of the Consolidated Financial Report

28

Notes to the Financial Statements

48

2 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Composition of Corporate Bodies

Board of Directors

Alessandro Mutinelli (Chief Executive Officer and Chairman)

Simone Strocchi (Deputy Chairman)

Pier Paolo Quaranta

Angela Oggionni

Massimiliano Mutinelli

Antonella Lillo (Independent Member)

Carlo Giordano (Independent Member)

Board of Statutory Auditors

David Reali (Chairman of the Board of Statutory Auditors)

Eugenio Romita (Statutory Auditor)

Debora Mazzaccherini (Statutory Auditor)

Independent Auditors

BDO Italia S.p.A.

Nomad

UBI Banca S.p.A.

3 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Directors' Report on Operations

  1. Analysis of the Company's situation, performance and operating results
  1. Reference market in which the company operates

The first half of 2020 saw the outbreak of the COVID-19 pandemic, which had a major impact on all world economies and caused the lockdown of many industrial activities.

Nonetheless, the Italian Wine Brands Group continued to operate interruptedly, in particular thanks to the essential nature of the product category sold (food products) and exposure to sales channels that were only partially affected by the impact of the lock-down.

The actions aimed at protecting the company's stakeholders, employees, customers, and suppliers, during the period of maximum criticality were timely and involved all areas of the company. Health safety measures have been implemented and home working protocols that have allowed all Group production and distribution activities to continue seamlessly and at full capacity, and ensured full compliance with safety regulations, also in agreement with and with the support of trade unions and workers' organisations.

In terms of reference markets, IWB generated its turnover mainly and increasingly with foreign customers (79.0% in the first six months of 2020 compared with 77.9% in the first six months of 2019) and only a residual part with domestic customers (21.0% in the first six months of 2020 compared with 22.1% in the first six months of 2019).

Over 90% of sales were made through a portfolio of proprietary and registered brands. In particular, the group operates under the various brands:

4 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

The wholesale channel specialised in the sale of products to operators in the sector, such as large-scale retail chains, state monopolies and traditional trade, continued the organic growth trend started several years ago and further strengthened its presence on the Swiss market through the acquisition of Raphael Dal Bo AG and its subsidiaries.

The distance selling channel, aimed at the direct sale of products in the portfolio to private consumers, recorded a significant increase in volumes sold during the first half of the year, thanks to the policies adopted from 2017 to boost e-commerce sales.

From a corporate point of view, IWB S.p.A. continued to carry out management and coordination activities for the Group companies.

Below follows the corporate organisational chart of the Italian Wine Brands group, also following the aforementioned acquisition of Raphael Dal Bo AG and its subsidiaries.

5 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Italian Wine Brands

S.p.A.

100%

100%

Giordano Vini S.p.A.

Provinco Italia S.p.A.

100%

100%

100%

Pro.Di.Ve. S.r.l.

Provinco

Raphael Dal Bo AG

Deutschland GmbH

100%

Raphael Dal Bo S.r.l.

1.2.1 Consolidated situation

The Italian Wine Brands Group recorded brilliant results in the first half of 2020, expressed in

thousands of Euros:

30.06.2020

30.06.2019

30.06.2018

30.06.2017

Ricavi delle vendite

92.158

70.073

69.940

68.989

Variazione delle rimanenze

4.255

3.239

(315)

1.045

Altri proventi

490

643

728

492

Totale ricavi

96.903

73.955

70.353

70.526

Costi per acquisti

(56.571)

(42.954)

(40.162)

(36.997)

Costi per servizi

(25.338)

(19.686)

(19.816)

(22.542)

Costo del personale

(4.029)

(3.706)

(4.132)

(4.524)

Altri costi operativi

(297)

(350)

(126)

(162)

Totale costi operativi

(86.235)

(66.696)

(64.236)

(64.225)

Margine operativo lordo restated

10.668

7.259

6.117

6.301

Margine operativo lordo

10.151

6.670

5.328

6.301

Risultato netto restated

5.814

3.113

2.757

2.836

Risultato netto

5.348

2.688

2.188

2.836

Indebitamento finanziario netto

20.169

21.556

11.291

13.553

di cui Indebitamento finanziario netto -

9.444

9.856

11.291

13.553

finanziatori terzi

di cui Indebitamento finanziario netto -

10.725

11.700

-

-

passività per diritti d'uso

The reclassified consolidated statement of financial position and income statement are

shown below.

6 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Stato patrimoniale riclassificato

(migliaia di Euro)

30.06.2020

31.12.2019

30.06.2019

Altre immobilizzazioni immateriali

33.585

32.474

31.929

Avviamento

68.325

55.455

55.455

Immobilizzazioni materiali

14.000

14.539

14.331

Attività per diritti d'uso

10.248

10.860

11.472

Immobilizzazioni finanziarie

2

2

2

Totale immobilizzazioni

126.160

113.330

113.189

Magazzino

24.968

20.334

22.236

Crediti commerciali netti

25.725

23.605

19.770

Debiti commerciali

(44.916)

(45.750)

(38.929)

Altre attività (passività)

(6.338)

(1.731)

(681)

Capitale circolante netto

(561)

(3.542)

2.396

Debiti per benefici ai dipendenti

(603)

(651)

(680)

Netto imposte differite e anticipate attive (passive)

(8.225)

(8.252)

(8.621)

Altri fondi

(991)

(994)

(1.067)

CAPITALE INVESTITO NETTO

115.780

99.891

105.217

Patrimonio netto

95.611

89.208

83.661

Utile (perdita) di periodo

5.348

7.899

2.688

Capitale sociale

880

880

880

Altre riserve

89.383

80.429

80.093

Indebitamento finanziario netto

9.444

(565)

9.856

Passività per diritti d'uso

10.725

11.248

11.700

TOTALE FONTI

115.780

99.891

105.217

Conto economico riclassificato

(migliaia di Euro)

Restated

Restated

Restated

30.06.2020

30.06.2019

30.06.2018

Ricavi delle vendite

92.158

70.073

69.940

Variazione delle rimanenze

4.255

3.239

(315)

Altri proventi

490

643

728

Totale ricavi

96.903

73.955

70.353

Costi per acquisti

(56.571)

(42.954)

(40.162)

Costi per servizi

(25.338)

(19.686)

(19.816)

Costo del personale

(4.029)

(3.706)

(4.132)

Altri costi operativi

(297)

(350)

(126)

Totale costi operativi

(86.235)

(66.696)

(64.236)

Margine operativo lordo

10.668

7.259

6.117

Svalutazioni

(521)

(672)

(801)

Ammortamenti

(1.910)

(1.599)

(932)

Risultato operativo dell'attività caratteristica

8.237

4.988

4.384

Oneri di natura non ricorrente

(517)

(589)

(789)

Rilasci (accantonamenti) netti fondi per rischi

-

-

-

Risultato operativo

7.720

4.399

3.595

Proventi (oneri) finanziari netti

(619)

(671)

(594)

Proventi (oneri) finanziari netti - non ricorrenti

(13)

-

-

Risultato prima delle imposte

7.089

3.728

3.001

Imposte

(1.741)

(1.040)

(813)

Risultato netto

5.348

2.688

2.188

Effetto fiscale oneri non ricorrenti

64

164

220

Risultato netto ante oneri non ricorrenti e relativo effetto

5.814

3.113

2.757

fiscale

7 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Conto economico riclassificato

(migliaia di Euro)

Reported

Management

Restated

30.06.2020

adjustments

30.06.2020

Ricavi delle vendite

92.158

92.158

Variazione delle rimanenze

4.255

4.255

Altri roventi

490

490

Totale ricavi

96.903

96.903

Costi per acquisti

(56.571)

(56.571)

Costi per servizi

(25.395)

57

(25.338)

Costo del personale

(4.215)

186

(4.029)

Altri costi operativi

(571)

274

(297)

Totale costi operativi

(86.752)

517

(86.235)

Margine operativo lordo

10.151

517

10.668

Svalutazioni

(521)

(521)

Ammortamenti

(1.910)

(1.910)

Risultato operativo dell'attività caratteristica

7.720

517

8.237

Oneri di natura non ricorrente

-

(517)

(517)

Rilasci (accantonamenti) netti fondi per rischi

-

-

Risultato operativo

7.720

-

7.720

Proventi (oneri) finanziari netti

(632)

13

(619)

Proventi (oneri) finanziari netti - non ricorrenti

(13)

(13)

Risultato prima delle imposte

7.089

-

7.089

Imposte

(1.741)

(1.741)

Risultato netto

5.348

-

5.348

Effetto fiscale oneri non ricorrenti

64

Risultato netto ante non ricorrenti e relativo effetto fiscale

5.814

Summary of Management Adjustments

-

-

-

-

Costs for services equal to: €57 thousand for legal advice in connection with the acquisition of Raphael Dal Bo AG by Provinco Italia S.p.A.

Personnel costs equal to: €186 thousand relating to the costs incurred for the dismissal of a manager at the subsidiary Giordano Vini S.p.A. who remained on the payroll until March 2020;

Other operating costs equal to: €274 thousand relating to the closing of a credit position linked to an advertising barter contract in 2016;

Net financial income (expenses) - non-recurring equal to: €13 thousand for bank commissions in connection with the acquisition of Raphael Dal Bo AG by Provinco Italia S.p.A.

The interim profitability index called by the directors "Restated EBITDA," compared to the "Net Profit" shown in the consolidated comprehensive income statement, is made up as follows:

Net income less "Taxes", "Net financial income and charges", "Write-ups/(Write-downs)" including the write-down of inventories and trade receivables, "Provisions for risks" and "Amortisation and Depreciation".

8 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

1.2.2 Financial and equity position of the Parent Company

The financial statements of IWB S.p.A. at 30 June 2020 set out herein do not represent the separate financial statements of IWB S.p.A., which have been prepared in compliance with the provisions contained in Article 2423 of the Italian Civil Code, interpreted and supplemented by the accounting standards issued by the OIC. The following accounting schedules refer to a situation prepared in accordance with the Group IFRS standards for the preparation of these consolidated financial statements, and show:

  • A Net Profit for the period of €9.06 million (€7.08 million at 30 June 2019);
  • Net liquidity of €30.23 million (€17.36 million at 31 December 2019)

Below is a summary of the parent company's statement of financial position, financial position and income statement.

Stato patrimoniale riclassificato

(migliaia di Euro)

30.06.2020

31.12.2019

Altre immobilizzazioni immateriali

228

194

Attività per diritti d'uso

153

298

Immobilizzazioni materiali

268

163

Immobilizzazioni finanziarie

54.256

54.256

Totale immobilizzazioni

54.905

54.911

Crediti commerciali netti

2.032

1.267

Debiti commerciali

(182)

(328)

Altre attività (passività)

3.850

7.058

Capitale circolante netto

5.700

7.997

Debiti per benefici ai dipendenti

(21)

-

Netto imposte differite e anticipate attive (passive)

-

-

Altri fondi

-

-

CAPITALE INVESTITO NETTO

60.584

62.908

Patrimonio Netto

90.813

80.268

Utile (perdita) di periodo

9.058

6.388

Capitale sociale

880

880

Altre riserve

80.875

73.000

Indebitamento finanziario netto

(30.229)

(17.360)

TOTALE FONTI

60.584

62.908

In relation to the above statement of financial position, it should be noted that:

  • The equity investments in subsidiary companies consist of Giordano Vini S.p.A. for €32,823 thousand and Provinco Italia S.p.A. for €21,433 thousand. The item "Equity investments" takes into account the irrevocable waiver by Italian Wine Brands S.p.A., as sole shareholder of Giordano, of the receivable for shareholders' loans of €18,900 thousand, as the entire capital share of the interest-bearing loan granted on 9

9 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

February 2015 to the company with significant positive and simultaneous effects on shareholders' equity and financial debt.

Conto economico riclassificato

(migliaia di Euro)

30.06.2020

30.06.2019

Ricavi delle vendite

400

-

Altri proventi

38

15

Totale ricavi

438

15

Costi per acquisti

(1)

-

Costi per servizi

(357)

(356)

Costo del personale

(378)

-

Altri costi operativi

(54)

(35)

Totale costi operativi

(790)

(391)

Margine operativo lordo

(352)

(376)

Svalutazioni

-

-

Ammortamenti

(75)

(15)

Risultato operativo dell'attività caratteristica

(427)

(391)

Rilasci (accantonamenti) netti fondi per rischi

-

-

Risultato operativo

(427)

(391)

Proventi (oneri) finanziari netti

87

75

Dividendi da imprese controllate

9.152

7.355

Risultato prima delle imposte

8.812

7.039

Imposte

246

42

Risultato netto

9.058

7.081

In relation to the situation described above in the income statement:

  • dividends refer entirely to the subsidiary Provinco Italia S.p.A.;
  • financial income mainly refers to the interest income matured on the loan granted to the subsidiary Giordano Vini S.p.A. (equal to €85 thousand)

1.2.3 Consolidated net financial position

In order to define the consolidated net financial position, the provisions of CONSOB communication no. DEM/6064293 of 28 July 2006 were applied; it refers to the information provided in CESR Recommendation 05-054/b of 10 February 2005 "CESR's recommendations for the consistent implementation of the European Commission's Regulation on Prospectuses:

10 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

30.06.2020

31.12.2019

30.06.2019

A. Cassa

36

720

127

B. Altre disponibilità liquide

17.786

31.933

24.485

C. Titoli detenuti per la negoziazione

-

-

-

D. Liquidità (A) + (B) + (C)

17.822

32.653

24.612

E. Crediti finanziari correnti

2.824

111

240

E.2 Strumenti finanziari derivati

-

-

-

F. Debiti bancari correnti

3.538

3.561

3.688

G. Parte corrente dell'indebitamento non corrente

3.459

4.996

5.483

H. Altri debiti finanziari correnti

12

14

15

I. Indebitamento finanziario corrente (F) + (G) + (H)

7.009

8.571

9.186

J. Indebitamento finanziario corrente netto (I) - (E) - (D)

(13.637)

(24.193)

(15.666)

K. Attività finanziarie non correnti

-

-

-

L. Crediti finanziari non correnti

-

-

-

M. Debiti bancari non correnti

24.382

24.967

26.706

N. Obbligazioni emesse

-

-

-

O. Altri debiti non correnti

9.424

9.909

10.516

P. Indebitamento finanziario non corrente (M) + (N) + (O)

33.806

34.876

37.222

Q. Indebitamento finanziario non corrente netto (P) - (K) - (L)

33.806

34.876

37.222

Posizione finanziaria netta (J) + (Q)

20.169

10.683

21.556

di cui

Debiti correnti per acquisizione diritti d'uso

1.301

1.339

1.184

Debiti non correnti per acquisizione diritti d'uso

9.424

9.909

10.516

Posizione finanziaria netta senza effetto IFRS 16

9.444

(565)

9.856

1.3 Group Performance Business volume - Revenues

During the first half of 2020 the Group's consolidated revenues reached €92.2 million, a significant and consistent increase compared to €70.1 million in the first half of 2019 (+31.5% yoy).

This result was largely the fruit of the organic development of the Group's business (+€16.5 million) and partly of the acquisition of Raphael Dal Bo AG, which was completed at the beginning of 2020 (+€5.6 million).

The compound annual growth rate (i.e., "CAGR") in the two-year period 2018/2020 stands at 14.8%, much higher than the reference market average.

The contribution to growth was particularly made by international markets, where the Group recorded 78.8% of total revenues (77.7% in the first half of 2019, 77.5% in the first half of 2018). After years of decline, the Italian market recorded a surprising rate of growth, thanks

11 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

in particular to the development of direct sales activities and consistent with the market dynamics during the lockdown period due to the COVID-19 pandemic, which saw a shift in wine consumption from the Horeca channel to large-scale retail and online purchases.

The table below shows the breakdown of Group revenues by geographical area.

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi delle Vendite - Italia

19.341

15.395

15.750

25,63%

10,81%

Ricavi delle Vendite - Estero

72.604

54.411

53.840

33,44%

16,13%

Svizzera

21.172

12.870

12.680

64,51%

29,22%

Germania

20.219

15.775

14.705

28,17%

17,26%

Inghilterra

9.056

7.238

5.162

25,12%

32,45%

Austria

8.473

7.062

6.861

19,97%

11,13%

Danimarca

2.917

2.686

3.212

8,60%

(4,70%)

Francia

2.864

2.372

2.694

20,72%

3,10%

Belgio

1.594

418

630

281,24%

59,04%

Olanda

912

445

360

105,04%

59,20%

USA

836

1.338

653

(37,54%)

13,13%

Svezia

828

813

786

1,84%

2,63%

Canada

540

346

462

55,95%

8,07%

Cina

306

776

722

(60,59%)

(34,92%)

Altri paesi

2.889

2.272

4.913

27,17%

(23,31%)

Altri ricavi

213

267

350

(20,23%)

(21,99%)

Totale Ricavi delle Vendite

92.158

70.073

69.940

31,52%

14,79%

As known, the IWB Group realises its revenues from sales through two distribution channels; "wholesale" defines the sales of products to operators in the sector, such as large-scale distribution chains, state monopolies and traditional trade; "distance selling" defines direct sales of products to private consumers via the web, direct mailings and teleselling and other channels.

The following table shows a breakdown of revenues by business area.

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi divisione wholesale

50.582

37.325

35.204

35,52%

19,87%

Ricavi divisione distance selling

41.363

32.481

34.386

27,35%

9,68%

Altri ricavi

213

267

350

(20,23%)

(21,99%)

Totale Ricavi delle Vendite

92.158

70.073

69.940

31,52%

14,79%

The wholesale distribution channel became the Group's main source of revenues also in the first half of 2020, accounting for 54.9% of total revenues from sales (53.3% in 2019, 50.3% in 2018). Growth was constant and solid over the 2018-2020 period with a CAGR of 19.9%.

12 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Specifically, the CAGR, in relation to the organic growth of the Group's business, was 13.6% while the acquisition of Raphael Del Bo contributed the remaining 6.3%.

The following table shows revenues from sales of the wholesale channel, broken down by country:

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi divisione wholesale - Italia

2.569

1.481

678

73,47%

94,66%

Ricavi divisione wholesale - Estero

48.013

35.844

34.526

33,95%

17,92%

Svizzera

19.228

11.250

10.926

70,91%

32,66%

Austria

7.151

5.975

5.743

19,69%

11,59%

Germania

6.799

4.485

3.080

51,59%

48,58%

Inghilterra

4.661

5.421

3.334

(14,02%)

18,24%

Danimarca

2.917

2.686

3.212

8,60%

(4,70%)

Belgio

1.259

253

445

397,62%

68,20%

USA

836

1.338

653

(37,54%)

13,13%

Svezia

828

813

786

1,84%

2,63%

Olanda

589

229

163

157,22%

90,10%

Canada

540

346

462

55,95%

8,07%

Cina

306

776

722

(60,59%)

(34,92%)

Francia

103

-

87

N/A

8,79%

Altri paesi

2.797

2.272

4.913

23,09%

(24,55%)

Totale ricavi div. wholesale

50.582

37.325

35.204

35,52%

19,87%

The figures shown in the table above are very positive and testify to the solid growth achieved by the Group through this distribution channel. In Europe, the reference territory in which it operates, IWB was able to outperform the market in terms of growth rates (approximately equal to about 2-3% of the annual increase in values). These results have been achieved mainly through:

  • an expansion and extension of the own brand product portfolio, which today accounts for over 90% of the channel's sales and which makes the IWB Group's commercial offering attractive, recognised on the market and synonymous with quality;
  • the acquisition of new accounts, essentially in each country in which the Group operates;
  • an increase in the market share of sales from existing accounts thanks to excellent stock rotation parameters of its customers;
  • growth through external lines (acquisition of Raphael Dal Bo AG and Raphael Dal Bo S.r.l.).

13 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

As far as the individual markets are concerned, we should point out the brilliant performances achieved in the Switzerland, which remains first in terms of size. This growth is linked to the commercial success of the brands in the portfolio, in particular "Grande Alberone" and "Ronco di Sassi," and the acquisition of new customers.

Like Switzerland, Austria, the second largest foreign country for the division, also confirms a solid growth trend, significantly higher than the growth of the reference market.

As far as England is concerned, after years of very strong business growth mainly as a result of the remarkable success on the market of sparkling wines, spumante and Prosecco wines produced by IWB, there is a slight slowdown in business.

Germany too, a country that has historically been only marginally represented in sales to large-scale retailers and characterised by very strong competitive pressure on prices imposed by discount chains, has also seen the Group's presence grow exponentially over the last two years, thanks in particular to the acquisition of new accounts.

In Scandinavia, the Group has consolidated its presence thanks to a new importer in Sweden and an increased commercial focus on the main Danish account, where several new own- brand references have been introduced.

Asia is currently covered by a still limited commercial structure and, though still marginal, it has substantially doubled its revenues in the three-year period under review and the trend in orders also suggests growth in the second half of the current year.

Since the beginning of 2018, the Group has been operating in Italy through its wholesale division, supplying both Italian organised distribution chains and an important German large- retail chain, already a primary customer of the Group in this business area. In addition, new distribution agreements have been concluded with two other chains of significant size.

During the first half of 2020, the distance selling channel accounted for 45.1% of the Group's revenues (46.4% in the first half of 2019 and 49.2% in the first half of 2018), further reducing its weight as a distribution channel within the Group.

The following table shows revenues from sales of the distance selling channel, broken down by country:

14 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi distance selling Italia

16.772

13.916

15.072

20,52%

5,49%

Ricavi distance selling Estero

24.592

18.565

19.314

32,46%

12,84%

Germania

13.420

11.289

11.626

18,87%

7,44%

Inghilterra

4.395

1.816

1.828

142,02%

55,06%

Francia

2.761

2.372

2.607

16,38%

2,90%

Svizzera

1.944

1.622

1.754

19,87%

5,29%

Austria

1.321

1.086

1.118

21,67%

8,71%

Belgio

335

165

185

102,78%

34,48%

Olanda

323

215

196

50,42%

28,45%

Altri paesi

93

-

-

N/A

N/A

Totale ricavi div. distance selling

41.363

32.481

34.386

27,35%

9,68%

The table below provides details of the Group's sales revenues from distance selling in Italy and abroad, broken down into sales through the Direct Mailing, Teleselling and Digital/Web channels.

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi distance selling Italia

16.772

13.916

15.072

20,52%

5,49%

Direct Mailing

7.572

6.536

6.991

15,85%

4,07%

Teleselling

4.894

5.602

6.414

(12,64%)

(12,65%)

Digital / WEB

4.306

1.778

1.667

142,18%

60,72%

% Direct Mailing sul totale Italia

45,1%

47,0%

46,4%

%Teleselling sul totale Italia

29,2%

40,3%

42,6%

% Digital / WEB sul totale Italia

25,7%

12,8%

11,1%

Ricavi distance selling Estero

24.592

18.565

19.314

32,46%

12,84%

Direct Mailing

13.288

11.187

11.849

18,78%

5,90%

Teleselling

3.728

3.594

4.573

3,73%

(9,71%)

Digital / WEB

7.576

3.784

2.892

100,21%

61,85%

% Direct Mailing sul totale Estero

54,0%

60,3%

61,3%

%Teleselling sul totale Estero

15,2%

19,4%

23,7%

% Digital / WEB sul totale Estero

30,8%

20,4%

15,0%

Totale ricavi div. distance selling

41.363

32.481

34.386

27,35%

9,68%

The analysis of the above table shows:

  • thanks to the substantial investments made in recent years, the Digital/WEB channel has reached a weight on total distance selling revenues of around 30%; the channel's growth rate in Italy (+142.2%) was much higher than that achieved in Italy by companies

15 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

operating in the same sector during the lockdown period due to the COVID-19 (102.0%, source: Nomisma);

  • the Group confirms its position as the leading Italian digital player on the European wine market, with notable growth in both structural terms and remuneration.

Analysis of operating margins

Below is a detailed breakdown of the cost components which, deducted from the item Total Revenues, contributed to the formation of the Restated EBITDA of the Italian Wine Brands Group.

Valori Restated in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi delle vendite e altri ricavi

92.648

70.716

70.668

31,01%

14,50%

Consumi di materie prime

(52.316)

(39.715)

(40.477)

31,73%

13,69%

% su totale ricavi

(56,47%)

(56,16%)

(57,28%)

Costi per servizi

(25.338)

(1)

(19.686)

(2)

(19.816)

28,71%

13,08%

% su totale ricavi

(27,35%)

(27,84%)

(28,04%)

Personale

(4.029)

(3.706)

(4.132)

8,72%

(1,26%)

% su totale ricavi

(4,35%)

(5,24%)

(5,85%)

Altri costi operativi

(297)

(350)

(126)

(15,14%)

53,53%

% su totale ricavi

(0,32%)

(0,49%)

(0,18%)

Margine Lordo operativo Restated (*)

10.668

(1)

7.259

(2)

6.117

46,96%

32,07%

% su totale ricavi

11,51%

10,27%

8,66%

  1. Margine Operativo Lordo Restated per tenere conto degli effetti degli oneri di natura non ricorrente
  1. Comprensivo dell'effetto positivo IFRS 16 pari a Euro 681 migliaia
  2. Comprensivo dell'effetto positivo IFRS 16 pari a Euro 531 migliaia

The table above shows that, in the first half of 2020, the incidence of raw material consumptionon revenues was more or less in line with the same period of the previous year.

Costs for servicesincreased in the period in absolute values (€5.7 million) due to the growth in revenues from €19.7 million at 30 June 2019 to €25.3 million, while as a percentage of revenues there was a decrease of 50 bps (from 27.84% to 27.35%).

Details are given below for the costs for services incurred by the Group in the first half of 2020, compared with the same items in 2019 and 2018.

16 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori Restated in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

Servizi da terzi

5.187

4.263

3.493

Trasporti

7.093

5.332

6.000

Spese di postalizzazione

2.076

2.115

1.962

Canoni ed affitti

294

214

819

Consulenze

615

658

930

Costi di pubblicità

3

2

4

Utenze

410

378

276

Compensi amministratori sindaci e ODV

437

445

407

Manutenzioni

149

100

89

Costi per outsourcing

3.619

3.237

2.702

Dazi e accise su vendite

3.877

1.510

1.573

Provvigioni

71

46

93

Altri costi per servizi

1.564

1.549

1.794

Oneri di natura non ricorrente

(57)

(163)

(326)

Totale

25.338

19.686

19.816

In general terms, this reduction in the percentage of costs for services on turnover is linked to a "mix" effect on sales, which is increasingly oriented towards the wholesale distribution channel, which is structurally characterised by a significantly lower percentage of costs for services on revenues compared to sales in the distance selling channel.

All cost items in this area remained substantially stable or slightly down in absolute terms compared to previous periods except for:

  • "services from third parties," which include costs for handling goods between warehouses;
  • "transport costs," almost entirely related to the cost of home delivery of sales to private customers;
  • "outsourcing costs," which include the logistical processing costs of packages for private customers;

which increased in line with the trend in revenues of both the wholesale and distance selling channels.

There was also a significant increase in the cost of duties and excise, linked to export taxes in some European countries including Switzerland and the United Kingdom, areas where Group sales have increased considerably.

Personnel costsincreased slightly in absolute terms (from €3.7 million to €4.0 million) during the first half of the year, due to consolidation of the wholesale area and the entry of RDB into

17 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

the Group, matched by a considerable decrease in terms of percentage of revenues (from 5.2% to 4.4%).

The trends in revenues and costs described above made it possible to record a Restated EBITDAof €10.7 million (11.5% of Total Revenues) in the first half of 2020, slightly up compared with the first six months of 2019 (€7.3 million).

Below is a breakdown of the cost items that from the EBITDA result in the formation of the Operating Incomeof the Italian Wine Brands Group.

Valori Restated in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Margine Operativo Lordo Restated

10.668

7.259

6.117

46,96%

32,07%

Svalutazioni

(521)

(672)

(801)

(22,47%)

(19,35%)

% su totale ricavi

(0,56%)

(0,95%)

(1,13%)

Ammortamenti

(1.910)

(1.599)

(932)

19,45%

43,16%

% su totale ricavi

(2,06%)

(2,26%)

(1,32%)

Oneri di natura non ricorrente

(517)

(589)

(789)

(12,22%)

(19,03%)

% su totale ricavi

(0,56%)

(0,83%)

(1,12%)

Rilasci (accantonamenti) fondi rischi

-

-

-

-

-

% su totale ricavi

-

-

-

Risultato Operativo

7.720

4.399

3.595

75,49%

46,54%

% su totale ricavi

8,33%

6,22%

5,09%

The above table shows that the income statement of the Italian Wine Brands Group was characterised in the first half of 2020 by a limited and increasingly reduced incidence of non- monetary items (write-downs, amortisation/depreciation, provisions), which accounted for approximately 2.6% of turnover.

Non-recurring charges, equal in the first half, to €517 thousand, are attributable for €274 thousand to the closing of the credit position related to an advertising bartering operation, for €186 thousand to charges related to the settlement with a former manager of the subsidiary Giordano Vini S.p.A. and for €57 thousand to costs for services related to legal advice concerning the acquisition of Raphael Dal Bo AG by Provinco Italia S.p.A.

18 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Investments in Capital Assets, Net Working Capital and Financial Position.

There were no specific investments in Capital Assetsduring the period under review. The owned real estate complex located in Diano d'Alba and the two cellars located in Diano d'Alba and Torricella, as well as the bottling lines of Diano d'Alba are a feather in the cap of the Italian wine industry and are largely able to support, with adequate maintenance investments, the production levels planned for the near future.

On 2 March 2020, the scope of consolidation was extended following the acquisition of 100% of the shares of the Swiss company Raphael Dal Bo AG and its wholly-owned subsidiary Raphael Dal Bo S.r.l. of Valdobbiadene (jointly "RDB"), by Provinco Italia S.p.A.

According to the contractual agreements, at the closing of the transaction, Provinco Italia S.p.A. paid the sellers an amount of CHF 12.4 million, equal to approximately 86% of the total sale price agreed between the parties at the closing and Mr. Raphael Dal Bo purchased 210,289 own shares held by the subsidiary Italian Wine Brands for a total of CHF 2.9 million, becoming a shareholder of the Group with a 2.84% interest. The IWB shares purchased by Mr. Raphael Dal Bo are locked up for 36 months as of today's date and result in a strong loyalty and alignment of the new shareholder's interests with the market.

The remaining 14% of the total price, amounting to a maximum of CHF 2.0 million, will be paid by 31 March 2021 depending on whether RDB's 2020 results are confirmed. This amount will be paid against the concurrent commitment by Mr Raphael Dal Bo to purchase own shares in portfolio from IWB for an amount equal to 30% of the price received by the latter. These shares will also be locked up for 36 months from the date of purchase.

Raphael Dal Bo AG, with registered office in Riedikon (Zurich) and subsidiary in Valdobbiadene (TV), boasts an important position in Switzerland in the organic sparkling and semi-sparkling wines sector with its own brands "Raphael Dal Bo," "La vita è bella" and "Raffaello." The company has a wide range of products characterized by a very high brand recognition and an excellent positioning in market segments with the highest added value ("affordable premium"). The products are distributed by an important international customer base, made up of both leading retail chains and major specialist store chains.

In 2019, RDB generated consolidated sales of CHF 10.7 million (+10.4% compared to consolidated sales in 2018), while in the first half of 2020 it recorded consolidated sales of CHF 5.5 million (+23.2 million compared to consolidated sales in the same period of 2019).

19 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Net Working Capitaldecreased compared to 30 June 2019 as a result of two opposite effects: trade receivables, inventory and trade payables showed an increase as a result of the growth in revenues and a higher percentage weight on revenues (from 4.4% to 6.3%) while the net current tax position is characterised by higher payables linked to the increase in sales (higher VAT payable) and net profit (higher direct taxes to be paid).

Net Financial Debtremained in line, in absolute terms, with 30 June 2019, despite the substantial investment for the acquisition of RDB and the distribution of the dividend in June 2020 (approximately €750 thousand).

2. Significant events after the end of the period

Nothing in particular to report.

3. Outlook

The normal business management, which sees the management engaged every day in the virtuous development of the business and in the pursuit of the best performance, was impacted in recent weeks by the aforementioned COVID-19 pandemic.

As is well known, the IWB group supplies food products to retail chains and private customers (with home delivery services) and therefore, at the reporting date, it is not directly affected by further potential Government lockdown measures in terms of business, distribution or production.

The Group's action has been and will continue to be focused on the full preservation and enhancement of the company's assets, primarily those of its customers and employees.

4. Code of Ethics and Organisational Model

The Code of Ethics, which Giordano Vini S.p.A. adopted in 2010, is an ideal alliance that the Company clearly establishes with its Human Resources and with its main external partners, and is a fundamental tool of the Compliance Programme.

The entrepreneurial objectives of Giordano Vini S.p.A. are pursued without ever losing sight of respect, responsibility, transparency, sobriety and continuous innovation.

These are points of reference that have always allowed us to ensure the centrality of customers to whom we always offer maximum satisfaction.

20 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Giordano Vini S.p.A has adopted a Compliance Programme as required by Legislative Decree no. 231 of 8 June 2001.

This decree introduced the liability of companies for certain crimes committed in their interest or to their advantage by persons acting on their behalf or in their name, such as directors, executives, employees as well as persons in a consulting relationship when they act under the control or direction of persons employed by those companies.

5. Transactions with related parties

Transactions carried out are part of the normal management of the company, within the scope of the typical activity of each interested party, and are regulated at standard conditions.

It should be noted that the parent company IWB has adopted and follows the relative Related Parties Procedure in compliance with the general provisions of the AIM Italia Issuers' Regulations.

6. Information relating to the environment, safety and personnel

HEALTH AND SAFETY

The subsidiary Giordano Vini S.p.A. - which owns industrial buildings for production purposes - has implemented the Risk Assessment Document required by the law on safety at work.

Said document provides for an analysis of the risks present in the company both in terms of work activities and settlement methods; then it identifies the measures taken to minimise risks, those still to be taken and those to maintain an adequate level of safety. Finally, the necessary timeframes for the implementation of the remaining measures are identified.

The method of carrying out the work activity was considered in the analysis of the risks without specific risk situations being identified. The subject is always under control in the periodic updates of these documents.

The Risk Assessment Documents, as well as the Emergency Plans and Maps with safety signs and exit routes are periodically updated.

In the first half of 2020, constant health monitoring activities were carried out, as required by current legislation.

21 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

During the period, awareness activities continued on environmental and safety issues with ad-hoc training initiatives, as well as on the accident prevention measures and first aid, providing specific training for fire-fighting and first-aid workers, in full compliance with the reference regulatory framework.

OHSAS 18001:2007 CERTIFICATION

(Occupational Health and Safety Assessment Series)

Starting in 2012, the companies of the Italian Wine Brands Group adopted an Occupational Health and Safety Management System in compliance with the international standard OHSAS 18001:2007 (Occupational Health and Safety Assessment Series).

OHSAS 18001:2007 certification is not a legal obligation but the voluntary choice of those who feel responsibility for their own safety and that of others and puts these principles into practice through the adoption of a Health and Safety Management System for Workers.

The primary objective of a safety management system is to prevent and minimise accidents and incidents by integrating safe work practices into all areas of an organisation.

Through this certification, the third-party accredited body SGS ITALIA S.p.A. has recognised that the companies of the Group have implemented a management system in line with the highest safety standards and have also pursued its objectives continuously, making significant improvements to safety conditions in the workplace.

As part of its management system, the Group has sanctioned its commitment through the "Quality and Safety Policy" as a tool by which the entire company's mission is to offer an increasing number of customers in the world food and wine products of the finest Italian traditions, in the comfort of the exclusive service of the Group, considering the protection of workers' health and safety as an integral part of its business.

22 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

FOOD QUALITY AND SAFETY MANAGEMENT

After having obtained ISO 9001 Certification about ten years ago, in March 2015 the Group companies attained IFS Food Certification (for the German market) and the BRC Food Certification (for the United Kingdom) to constantly guarantee their customers who turn to large retailers a high level of production and safety of the supplied products, while improving existing processes, achieving better overall safety, an improvement in the relations with the Customer and greater competitiveness on the market.

GROUP WORKFORCE

The precise and average headcount by category at 30 June 2020, at 30 June 2019 and at 30 June 2018 is shown below for the Group companies:

N. puntuale

N. medio

N. puntuale

N. medio

N. puntuale

N. medio

30.06.2020

30.06.2020

30.06.2019

30.06.2019

30.06.2018

30.06.2018

Dirigenti

6

7

6

5

5

6

Quadri

13

13

9

9

8

9

Impiegati

123

122

127

127

130

131

Operai

16

18

16

17

17

31

Totale

158

159

158

158

160

177

7. Treasury shares

At 30 June 2020, the Parent Company held 3,985 ordinary shares, representing 0.05% of the ordinary share capital.

23 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Consolidated Statement of Financial Position

SITUAZIONE PATRIMONIALE-FINANZIARIA

Note

30.06.2020

31.12.2019

Valori in euro

Attività non correnti

Immobilizzazioni immateriali

5

33.584.628

32.474.226

Avviamento

6

68.325.255

55.454.960

Terreni, immobili, impianti e macchinari

7

14.000.075

14.538.503

Attività per diritti d'uso

7

10.248.472

10.860.401

Partecipazioni

8

2.496

2.496

Altre attività non correnti

9

221.114

505.944

Attività fiscali differite

10

1.716.677

1.762.347

Totale attività non correnti

128.098.717

115.598.877

Attività correnti

Rimanenze

11

24.967.938

20.333.956

Crediti commerciali

12

25.725.235

23.605.479

Altre attività correnti

13

2.491.582

1.621.560

Attività per imposte correnti

14

937.701

1.015.930

Attività finanziarie correnti

2.824.396

111.257

Disponibilità liquide e strumenti equivalenti

15

17.822.006

32.653.347

Totale attività correnti

74.768.858

79.341.529

Attività non correnti possedute per la vendita

-

-

Totale attivo

202.867.575

194.940.406

Patrimonio netto

Capitale sociale

879.854

879.854

Riserve

67.694.513

64.829.575

Riserva piani a benefici definiti

(59.555)

(61.213)

Riserva per stock grant

-

1.192.129

Utile (perdite) portate a nuovo

21.747.715

14.468.557

Risultato netto del periodo

5.348.062

7.899.234

Totale patrimonio netto attribuibile agli azionisti della Capogruppo

95.610.589

89.208.136

Patrimonio netto di terzi

-

-

Totale patrimonio netto

16

95.610.589

89.208.136

Passività non correnti

Debiti finanziari

17

24.381.524

24.967.467

Passività per diritti d'uso

17

9.425.151

9.909.388

Fondo per altri benefici ai dipendenti

18

602.848

650.839

Fondo per rischi ed oneri futuri

19

990.967

994.367

Imposte differite passive

10

9.941.867

10.014.441

Altre passività non correnti

21

-

-

Totale passività non correnti

45.342.357

46.536.502

Passività correnti

Debiti finanziari

17

5.709.088

7.232.059

Passività per diritti d'uso

17

1.300.806

1.339.165

Debiti commerciali

20

44.916.027

45.750.159

Altre passività correnti

21

4.494.395

1.664.900

Passività per imposte correnti

22

5.494.313

3.209.485

Fondo per rischi ed oneri futuri

19

-

-

Strumenti finanziari derivati

-

-

Totale passività correnti

61.914.629

59.195.768

Passività direttamente correlate ad attività possedute per la vendita

-

-

Totale patrimonio netto e passivo

202.867.575

194.940.406

24 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Comprehensive consolidated income statement

CONTO ECONOMICO

Note

30.06.2020

30.06.2019

Valori in euro

Ricavi delle vendite

23

92.157.943

70.073.295

Variazione delle rimanenze

11

4.255.361

3.238.818

Altri proventi

23

490.047

642.550

Totale ricavi

96.903.351

73.954.663

Costi per acquisti

24

(56.571.342)

(42.954.422)

Costi per servizi

25

(25.394.652)

(19.848.578)

Costo del personale

26

(4.214.969)

(3.705.939)

Altri costi operativi

27

(570.509)

(776.150)

Costi operativi

(86.751.472)

(67.285.089)

Margine operativo lordo

10.151.879

6.669.574

Ammortamenti

5-7

(1.910.191)

(1.598.507)

Accantonamenti per rischi

19

-

-

Rivalutazioni / (svalutazioni)

28

(520.676)

(672.024)

Risultato operativo

7.721.012

4.399.043

Proventi finanziari

110.257

51.526

Oneri finanziari

(742.070)

(722.735)

Proventi (oneri) finanziari netti

29

(631.813)

(671.209)

Risultato prima delle imposte

7.089.199

3.727.834

Imposte

30

(1.741.137)

(1.039.731)

(Perdita) utile connesso ad attività cessate ed in dismissione

-

-

Risultato netto (A)

5.348.062

2.688.103

Attribuibile a:

(Utile)/ perdita di pertinenza dei terzi

-

-

Risultato di pertinenza del Gruppo

5.348.062

2.688.103

Altri utili/(perdite) del risultato economico complessivo:

Altre componenti del conto economico complessivo del

periodo che saranno successivamente rilasciate a conto

economico

-

-

Altre componenti del conto economico complessivo del

periodo che non saranno successivamente rilasciate a conto

economico

Utili/(perdite) attuariali relative ai "piani a benefici definiti"

18

1.658

(33.960)

Effetto fiscale relativo agli altri utili/(perdite)

-

-

Totale altri utili/(perdite), al netto dell'effetto fiscale (B)

1.658

(33.960)

Totale utile/(perdita) complessiva (A) + (B)

5.349.720

2.654.143

25 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Statement of changes in consolidated shareholders' equity

Valori in Euro

Riserva da attività

finanziarie

Riserva per stock

disponibili per la

Riserva piani a

Capitale

Riserve di capitale

grant

vendita

benefici definiti

Riserve di risultato

Totale

Saldo al 1 gennaio 2019

879.854

65.744.306

254.698

-

(28.916)

17.432.132

84.282.074

Aumento capitale

-

Acquisto azioni proprie

(1.220.964)

(1.220.964)

Dividendi

(2.896.073)

(2.896.073)

Stock grant

238.739

937.431

1.176.170

Riserva legale

33.995

(33.995)

-

Riclassifiche e altre variazioni

33.499

(33.507)

(8)

Totale Utile/(Perdita) complessiva

(32.297)

7.899.234

7.866.937

Saldo al 31 dicembre 2019

879.854

64.829.575

1.192.129

-

(61.213)

22.367.791

89.208.136

Aumento capitale

-

Acquisto azioni proprie

(1.069.074)

(1.069.074)

Cessione azioni proprie

2.685.391

2.685.391

Dividendi

(739.809)

(739.809)

Stock grant

1.234.311

(1.192.129)

42.182

Riserva legale

-

Riclassifiche e altre variazioni

14.310

119.733

134.043

Totale Utile/(Perdita) complessiva

1.658

5.348.062

5.349.720

Saldo al 30 giugno 2020

879.854

67.694.513

-

-

(59.555)

27.095.777

95.610.589

26 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Consolidated statement of cash flows

Valori in euro

30.06.2020

30.06.2019

Utile (perdita) di periodo prima delle imposte

7.089.199

3.727.834

Rettifiche per:

- elementi non monetari - stock grant

-

-

- accantonamenti al fondo svalutazione crediti al netto degli utilizzi

520.676

672.024

- elementi non monetari - accantonamenti / (rilasci)

-

-

- elementi non monetari - ammortamenti

1.910.191

1.598.507

Utile di periodo (perdita) prima delle imposte rettificato

9.520.066

5.998.365

Disponibilità liquide generate dalle operazioni

Imposte sul reddito pagate

621.920

1.460.912

Altri (proventi)/oneri finanziari senza flusso monetario (c. Amm. Fin)

87.803

92.262

Totale

709.723

1.553.174

Variazioni del capitale circolante

Variazione crediti verso clienti

(1.774.145)

342.965

Variazione debiti verso fornitori

(1.354.044)

(5.592.691)

Variazione delle rimanenze

(4.065.341)

(3.239.156)

Variazione altri crediti e altri debiti

21.156

(819.671)

Altre variazioni

41.541

336

Variazione TFR e altri fondi

(53.049)

(13.583)

Variazioni altri fondi e imposte differite

(26.904)

(75.432)

Totale

(7.210.785)

(9.397.232)

Cash flow da attività operativa (1)

3.019.004

(1.845.693)

Investimenti:

- Materiali

(45.981)

(213.948)

- Immateriali

(1.793.121)

(703.492)

- Flusso di cassa netto derivante dall'aggregazione aziendale (*):

(11.641.919)

-

- Finanziari

-

-

Cash flow da attività di investimento (2)

(13.481.022)

(917.440)

Attività finanziaria

Accensioni di finanziamenti a breve

4.097.157

10.737.090

(Rimborsi) di finanziamenti a breve

(4.000.000)

(20.252.000)

Incassi / (rimborsi) finanziamento Senior

(1.625.000)

(3.250.000)

Incassi / (rimborsi) altri debiti finanziari

(1.073.667)

4.411.000

Variazione altre attività finanziarie

(2.713.139)

46.103

Variazione altre passività finanziarie

(110.723)

(242.262)

Acquisto azioni proprie

(1.069.074)

(379.513)

Cessione azioni proprie

2.685.391

-

Dividendi erogati

(739.809)

(2.896.073)

Aumenti di capitale sociale di natura monetaria

-

-

Variazione riserva per Stock Grant

42.182

-

Altre variazioni di patrimonio netto

137.360

(8)

Cash flow da attività di finanziamento (3)

(4.369.323)

(11.825.663)

Cash flow da attività in funzionamento

(14.831.341)

(14.588.796)

Variazione disponibilità liquide (1+2+3)

(14.831.341)

(14.588.796)

Disponibilità liquide all'inizio del periodo

32.653.347

39.200.858

Disponibilità liquide alla fine del periodo

17.822.006

24.612.062

  1. Effetti derivanti dall'acquisto del 100% della partecipazione nella società RDB AG come di seguito dettagliato:

a) Corrispettivo totale pagato per cassa:

11.938.432

b) Ammontare delle disponibilità liquide acquisite (con segno negativo):

(296.512)

27 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

FORM AND CONTENT

OF THE CONSOLIDATED FINANCIAL REPORT

Introduction

This Financial Report at 30 June 2020 has been prepared in accordance with the AIM Regulation and in compliance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and approved by the European Union. The designation "IFRS" also includes all currently valid International Accounting Standards ("IAS"), as well as all interpretations of the International Accounting Reporting Interpretations Committee ("IFRIC"), formerly the Standing Interpretations Committee ("SIC").

Statement of financial position schedules

This Financial Report at 30 June 2020 consists of the statement of financial position, the statement of comprehensive income, the statement of changes in shareholders' equity, the statement of cash flows and the notes, and is accompanied by the directors' report on operations.

The format adopted for the Statement of Financial Position distinguishes between current and non-current assets and liabilities.

The Group opted to present the items of profit or loss for the year in a single statement of comprehensive income, which includes the result for the period and, by homogeneous categories, income and expenses which, in accordance with IFRS, are posted directly to shareholders' equity. The income statement format adopted provides for the classification of costs by nature.

The statement of changes in shareholders' equity includes, in addition to total profits/losses for the period, the amounts of transactions with equity holders and changes in reserves during the period.

The statement of cash flows analyses the cash flows deriving from the operating activities using the indirect method, whereby the profit (loss) for the period is adjusted for the effects of non-monetary transactions, any deferrals or provisions relating to previous or future operating receipts or payments and the revenue or cost items connected with cash flows deriving from investing or financing activities.

28 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

1 Scope of consolidation

Subsidiaries are defined as all investees in which the Group simultaneously has an interest:

  • decision-makingpower, i.e., the ability to direct the relevant activities of the investee, i.e., those activities that have a significant influence on the results of the investee;
  • the right to variable results (positive or negative) from an investment in the consolidated entity;
  • the ability to use its decision-making power to determine the amount of profit/loss arising from an investment in a consolidated entity.
    The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control is acquired until such time as control ceases to exist. Equity shares and shares in the profit and loss of non-controlling interests are presented in the consolidated statement of financial position and income statement respectively.
    The entities included in the scope of consolidation and the relative percentages of direct or indirect ownership by the Group are listed below:

Società

Nazione

Capitale Sociale

Società Controllante

Percentuale di

Percentuale di

Valuta

Importo

possesso

possesso diretta

IWB S.p.A.

Italia

EUR

879.854

-

Capogruppo

Provinco Italia S.p.A.

Italia

EUR

132.857

IWB S.p.A.

100%

100%

Giordano Vini S.p.A.

Italia

EUR

14.622.511

IWB S.p.A.

100%

100%

Provinco Deutschland GmbH

Germania

EUR

25.000

Provinco Italia S.p.A.

100%

0%

Pro.Di.Ve. S.r.l.

Italia

EUR

18.486

Giordano Vini S.p.A.

100%

0%

Raphael Dal Bo AG

Svizzera

CHF

100.000

Provinco Italia S.p.A.

100%

0%

Raphael Dal Bo S.r.l.

Italia

EUR

10.000

Raphael Dal Bo AG

100%

0%

2 General principles of preparation

The consolidated Half-Year Financial Report was prepared on a going concern basis, with the presentation currency being the Euro, and the amounts shown are rounded to the nearest whole number, including, unless otherwise indicated, the amounts shown in the notes.

The general principle adopted in the preparation of this consolidated Half-Year Financial Report is that of cost, with the exception of derivative financial instruments measured at fair value.

The most significant accounting principles adopted in the preparation of these consolidated financial statements are as follows:

29 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is calculated as the sum of the amount paid, valued at fair value as at the acquisition date, and the amount of any non-controlling interest held in the acquired asset. For each business combination, the purchaser must assess any non-controlling interest held in the acquired property at fair value, or proportionate to the non-controlling interests held in the net identifiable assets of the acquired property. Acquisition costs are expensed and classified as administrative expenses.

At the acquisition date, the identifiable assets acquired and liabilities assumed are recognised at fair value at the acquisition date; exceptions to this are deferred tax assets and liabilities, assets and liabilities for employee benefits, liabilities or equity instruments relating to share- based payments of the acquired company or share-based payments issued in place of contracts of the acquired company, and assets (or groups of assets and liabilities) held for sale, which are instead measured according to their reference standard.

Any potential consideration must be recorded by the purchaser at fair value at the date of acquisition and classified according to IAS 32.

Goodwill is initially measured at cost, which is the excess of the sum of the consideration transferred in the business combination, the value of shareholders' equity attributable to non-controlling interests and the fair value of any investment previously held in the acquiree over the fair value of the net assets acquired and liabilities assumed at the acquisition date. If the value of the net assets acquired and liabilities assumed at the acquisition date exceeds the sum of the consideration transferred, the value of the shareholders' equity pertaining to non-controlling interests and the fair value of any investment previously held in the acquiree, this excess is immediately recognised in profit or loss as income from the transaction concluded.

The portions of shareholders' equity pertaining to non-controlling interests at the acquisition date can be measured at fair value or at the pro-rata value of the net assets recognised for the acquiree. The choice of valuation method is made on a transaction-by-transaction basis.

Any contingent consideration provided for in the business combination contract is measured at fair value at the acquisition date and included in the value of the consideration transferred in the business combination for the purpose of determining goodwill. Any subsequent changes in this fair value, which may be qualified as adjustments arising during the measurement period, are retrospectively included in goodwill. Changes in fair value that qualify as adjustments arising during the measurement period are those resulting from additional information on facts and circumstances that existed at the acquisition date, obtained during the measurement period (which may not exceed one year from the business combination).

In the case of business combinations carried out in stages, the equity investment previously held in the acquiree is revalued at fair value at the date of acquisition of control and any resulting profit or loss is recognised in the income statement. Any amounts deriving from the

30 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

equity investment previously held and recognised in Other comprehensive income are restated in profit or loss as if the equity investment had been sold.

If the initial amounts of a business combination are incomplete at the reporting date of the financial statements in which the business combination took place, provisional amounts of the items for which recognition cannot be completed are reported in the consolidated financial statements. These provisional amounts are adjusted during the measurement period to take into account new information obtained about facts and circumstances existing at the acquisition date that, if known, would have affected the amount of the assets and liabilities recognised at that date.

Transactions in which the parent company acquires or sells further bon-controlling interests without changing the control exercised over the subsidiary are transactions with shareholders and therefore the relative effects must be recognised in shareholders' equity: there will be no adjustments to goodwill and no gains or losses recognised in the income statement.

Ancillary charges relating to business combinations are recognised in profit or loss in the period in which they are incurred.

Intangible assets with indefinite useful life

Goodwill

Goodwill is recognised as an asset with an indefinite useful life and is not amortised, but tested for impairment annually, or more frequently if there is an indication that specific events or changed circumstances may have caused an impairment loss. Impairment losses are immediately recognised in profit or loss statement and are not subsequently reversed. After the initial recognition, goodwill is valued at cost, net of any accumulated impairment losses.

In order to test for impairment, goodwill acquired in a business combination is allocated, at the acquisition date, to the individual cash-generating units or groups of cash-generating units that should benefit from the synergies of the combination, regardless of whether other assets or liabilities of the acquiree are assigned to those units or groups of units.

Each unit or group of units to which goodwill is allocated represents the lowest level at which goodwill is monitored for internal management purposes.

Any loss in value is identified by comparing the carrying amount of the cash generating unit with its realisable value. If the realisable value of the cash-generating unit is lower than the carrying amount attributed, the related impairment loss is recognised. This impairment loss is not reversed if the reasons for it no longer exist.

31 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

If goodwill has been allocated to a cash-generating unit and the entity disposes of part of the assets of that unit, the goodwill associated with the disposed asset shall be included in the carrying amount of the asset when determining the gain or loss on disposal. The goodwill associated with the discontinued asset must be determined on the basis of the relative values of the discontinued asset and the portion of the cash-generating unit retained.

Trademark

With effect from 1 January 2014, the Directors of Giordano Vini S.p.A., also with the support of an independent expert, attributed an indefinite useful life to the trademark acquired as part of a merger transaction. As part of the business combination carried out in 2015, with regard to Provinco Italia S.p.A., part of the purchase price was allocated to the trademarks owned by Provinco, attributing an indefinite useful life to them as well.

Intangible assets with finite useful life

Intangible assets with finite useful life are valued at purchase or production cost net of amortisation and accumulated impairment losses. Depreciation is commensurate with the expected useful life of the asset and begins when the asset is available for use. The useful life is reviewed annually and any changes are made prospectively.

Whenever there are reasons to do so, intangible assets with a finite useful life are tested for impairment.

Other intangible assets

Other intangible assets are recognised in the statement of financial position only if it is probable that the use of the asset will generate future economic benefits and if the cost of the asset can be measured reliably. Once these conditions are met, intangible assets are recorded at purchase cost, which corresponds to the price paid plus accessory charges.

The gross carrying amount of other intangible assets with a finite useful life is systematically allocated over the years in which they are used, by means of constant amortisation charges, in relation to their estimated useful life. Amortisation begins when the asset is available for use and is proportionate, for the first reporting period, to the period of actual use. The amortisation rates used are determined on the basis of the useful life of the related assets.

The useful life values used for the purposes of preparing this Consolidated Half-Year Financial Report are as follows:

32 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

CATEGORY

USEFUL LIFE

Concessions, licenses, trademarks and similar rights

10 years

Industrial patent and use of intellectual property

3 years

Project for adjustment of management control

3 years

Teleselling Development Cost

lease agreement

Leased intangible assets

financial lease contract.

Right-of-use assets

As a result of the entry into force on 1 January 2019 of the new IFRS 16, lease contracts are recorded as rights of use under non-current assets with a balancing entry in a financial liability. The cost of the fee is broken down into its components of financial expense, recorded in profit or loss over the term of the contract, and repayment of principal, recorded as a reduction of the financial liability. The right of use is amortised on a monthly basis on a straight-line basis over the shorter of the asset's useful life and the term of the contract.

Rights of use and financial liabilities are initially measured at the present value of future payments discounted using the incremental borrowing rate.

Land, property, plant and equipment

Tangible assets are composed of:

  • industrial land and buildings
  • plant and equipment
  • industrial and commercial equipment
  • other assets

These are recorded at purchase or production cost, including directly attributable ancillary charges necessary for putting the asset into operation for its intended use.

The cost is reduced by depreciation, with the exception of land, which is not depreciated because it has an indefinite useful life, and any losses in value.

Depreciation is calculated on a straight-line basis using percentages that reflect the economic and technical deterioration of the asset and is calculated from the moment in which the asset is available for use.

Significant parts of property, plant and equipment with different useful life are accounted for separately and depreciated over their useful life.

The useful life of assets and residual values are reviewed annually at the time of closing the financial statements. The useful life values used for the purposes of preparing this Consolidated Half-Year Financial Report are as follows:

33 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

CATEGORY

USEFUL LIFE

Land

Indefinite

Buildings

18-50 years

Plant and equipment:

- Means of transport for interiors

10-12 years

- Generic plant

8-18 years

- Machinery

6-15 years

- Vats and tanks

4-20 years

Industrial and commercial equipment:

- Cars

5-8 years

- Equipment

8-12 years

- Electronic machines

4-8 years

- Ordinary office machines and furniture

15 years

- Goods on loan for use

4 years

Routine maintenance and repair costs are recognised directly in profit or loss in the period in which they are incurred.

Profits and losses arising from the sale or disposal of property, plant and equipment are determined as the difference between the sale proceeds and the net carrying amount of the asset and are recognised in profit or loss for the period.

Leasehold improvements with the characteristics of fixed assets are capitalised in the category of the asset to which they refer and are depreciated over their useful life or, if shorter, over the duration of the lease agreement.

Financial charges, incurred for investments in assets which normally require a certain period of time to be ready for use or sale (qualifying asset pursuant to IAS 23 - Borrowing Costs), are capitalised and amortised over the useful life of the class of assets to which they refer.

All other financial charges are recognised in profit or loss in the period in which they are incurred.

Impairment of assets

At least once a year it is checked whether the assets and/or the cash generating units ("CGUs") to which the assets are attributable may have suffered an impairment loss. If there is such evidence, the realisable value of the assets/CGUs is estimated. Goodwill and other intangible assets with an indefinite useful life are tested for impairment annually or more frequently, whenever there is an indication that the asset may be impaired.

Realisable value is defined as the higher of its fair value less costs to sell and value in use. The value in use is defined on the basis of the discounting back of the future cash flows expected from the use of the asset, gross of taxes, applying a discount rate that reflects current market changes in the time value of money and the risks of the asset.

If it is not possible to estimate the realisable value of the individual fixed asset, the recoverable value of the cash-generating unit (CGU) to which the fixed asset belongs is determined.

34 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

If the realisable value of an asset (or cash-generating unit) is lower than its carrying amount, the carrying amount is reduced to its recoverable amount and the loss is recognised in profit or loss. Subsequently, if an impairment loss on assets other than goodwill ceases to exist or decreases, the carrying amount of the asset (or cash-generating unit) is increased to the new estimate of its realisable value (which, however, may not exceed the net carrying amount that the asset would have had if the impairment loss had never been recognised). This reversal is immediately recognised in profit or loss.

Equity investments

Investments in subsidiaries not included in the scope of consolidation are stated at cost, adjusted for impairment. The positive difference resulting from the acquisition between the acquisition cost and the portion of the shareholders' equity at replacement cost of the investee company pertaining to the period is therefore included in the carrying amount of the investment. If there is evidence that these investments have suffered a loss in value, this is recorded in the income statement as a write-down. In the event that any share of the losses of the investee exceeds the carrying amount of the investment, and the entity has an obligation to account for them, the value of the investment is written off and the share of any further losses is recognised as a provision under liabilities. If, subsequently, the loss in value no longer exists or is reduced, a reversal of the impairment loss within the limits of cost is recognised in profit or loss.

Associates are all companies over which the Group is able to exercise significant influence as defined by IAS 28 - Investments in Associates and Joint Ventures. Such influence is normally presumed to exist when the Group holds a percentage of voting rights between 20% and 50%, or when - even with a lower percentage of voting rights - it has the power to participate in the determination of financial and management policies by virtue of particular legal ties such as, for example, participation in shareholders' agreements together with other forms of significant exercise of governance rights.

Joint arrangements are agreements under which two or more parties have joint control on the basis of a contract. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. Such agreements may give rise to joint ventures or joint operations.

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement Joint ventures differ from joint operations, which are arrangements that give the parties to the arrangement which have joint control over the initiative, rights over the individual assets and obligations for the individual liabilities relating to the arrangement. In the case of joint operations, it is mandatory to recognise the assets and liabilities, costs and revenues of the arrangement in accordance with the relevant accounting standards. The Group has no joint operation arrangements in place.

35 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Financial instruments

Financial instruments are included in the statement of financial position items described below. Investments and other non-current financial assets include investments in subsidiaries and other non-current financial assets. Current financial assets include trade receivables and cash and cash equivalents. In particular, cash and cash equivalents include bank deposits. Financial liabilities refer to financial payables, including payables for advances on orders, assignment of receivables, as well as other financial liabilities (which include the negative fair value of derivative financial instruments), trade payables and other payables.

Non-current financial assets

Non-current financial assets other than equity investments, as well as financial liabilities, are accounted for in accordance with IFRS 9. Loans and receivables not held for trading and assets held with the intention of keeping them in the portfolio until maturity are valued at amortised cost, using the effective interest method. When financial assets do not have a fixed maturity, they are valued at purchase cost. Evaluations are regularly carried out to verify whether there is objective evidence that a financial asset may have been impaired. If there is objective evidence, the impairment loss shall be recognised as an expense in the income statement for the period. With the exception of derivative financial instruments, financial liabilities are stated at amortised cost using the effective interest method.

Trade receivables and payables

Trade receivables are initially recorded at amortised cost, which coincides with the adjusted nominal value, in order to adjust it to the presumed realisable value, by recording a provision for bad debts. This provision for bad debts is commensurate with both the size of the risks relating to specific receivables and the size of the general risk of non-collection impending on all the receivables, prudentially estimated based on past experience and the degree of known financial equilibrium of all debtors.

Trade and other payables are recorded at their nominal value, which is considered representative of the settlement value. Receivables and payables in foreign currencies are aligned with the exchange rates prevailing on the reporting date and gains or losses deriving from conversion are entered in profit or loss.

Receivables assigned as a result of factoring transactions are eliminated from the statement of financial position if the risks and rewards of ownership have been substantially transferred to the assignee, thus constituting a non-recourse assignment. The portion of disposal costs that is certain to be included in the quantum amount is recognized as a financial liability.

Collections received on behalf of the factoring company and not yet transferred, generated by the contractual terms and conditions that provide for the periodic and predetermined transfer, are stated under financial liabilities.

Cash and cash equivalents

36 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

The item relating to cash and cash equivalents includes cash, bank current accounts, postal current accounts, deposits repayable on demand and other short-term highly liquid financial investments that are readily convertible into cash and are subject to an insignificant risk of change in value.

Financial payables

Financial liabilities include financial payables, including payables for deferred price parts relating to the assignment of non-recourse receivables, as well as other financial liabilities. Financial liabilities, other than derivative financial instruments, are initially recorded at market value (fair value) less transaction costs; they are subsequently valued at amortised cost, i.e., at their initial value, net of principal repayments already made, adjusted (upwards or downwards) on the basis of the amortisation (using the effective interest method) of any differences between the initial value and the value at maturity.

Inventory

Inventory is recorded at the lower of purchase or production cost and realisable value, represented by the amount that the entity expects to obtain from their sale in the normal course of business. The cost configuration adopted is the weighted average cost. Purchase costs include prices paid to suppliers increased by ancillary costs incurred up to entry into the warehouse, net of discounts and rebates. Production costs include both direct costs of materials and labour and reasonably attributable indirect production costs. In the allocation of production overheads, the normal production capacity of the plants is taken into account for the allocation of the cost of the products.

Provisions are made for the value of inventory determined in this way to take into account inventory considered obsolete or slow-moving.

Inventory also includes production cost relating to returns expected in future periods in connection with deliveries already made, estimated based on the sales value less the average mark-up applied.

Assets and liabilities held for sale

Assets and liabilities held for sale and discontinued operations are classified as such if their carrying amount will be recovered principally through sale rather than through continuing use. These conditions are considered to have been met when the sale or discontinuance of the group of assets being disposed of is considered highly probable and the assets and liabilities are immediately available for sale in the conditions in which they are located.

When an entity is involved in a disposal plan that results in a loss of control of an investee, all assets and liabilities of that investee are classified as held for sale when the above conditions are met, even if, after disposal, the entity continues to hold a non-controlling interest in the subsidiary.

Assets held for sale are valued at the lower of their net carrying amount and fair value net of selling costs.

37 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Employee benefits

Bonuses paid under defined-contribution plans are recognised in profit or loss for the portion accrued during the year.

Until 31 December 2006, the provision for employee severance indemnities (TFR) was considered a defined benefit plan. The rules governing this fund were amended by Law 296 of 27 December 2006 ("2007 Finance Act") and subsequent Decrees and Regulations issued in early 2007. In light of these changes, and in particular with reference to companies with at least 50 employees, this scheme is now to be considered a defined benefit plan solely for the amounts accrued before 1 January 2007 (and not yet paid at the reporting date), while for the amounts accrued after that date it is similar to a defined contribution plan.

Defined-benefit pension plans, which also include severance indemnities due to employees pursuant to Article 2120 of the Italian Civil Code, are based on the working life of the employees and the remuneration received by the employee during a predetermined period of service. In particular, the liability representing the benefit due to employees under defined benefit plans is recorded in the financial statements at its actuarial value.

The recognition of defined benefit plans requires the actuarial estimation of the amount of benefits accrued by employees in exchange for service rendered in the current and prior periods and the discounting back of such benefits in order to determine the present value of the entity's commitments. The present value of the commitments is determined by an independent actuary using the projected unit credit method. This method considers each period of service provided by employees at the company as an additional unit under law: actuarial liability must therefore be quantified only on the basis of the seniority accrued at the valuation date; therefore, total liability is normally re-proportioned based on the ratio between the years of service accrued at the valuation date of reference and the total seniority achieved at the time envisaged for the payment of the benefit. In addition, the above method provides to consider future salary increases, for whatever reason (inflation, career, contract renewals, etc.), until the time of termination of employment.

The cost of defined-benefit plans accrued during the year and recorded in profit or loss as part of personnel expenses is equal to the sum of the average current value of the rights accrued by the employees present for the work performed during the period, and the annual interest accrued on the present value of the commitments of the entity at the beginning of the period, calculated using the discount rate of future disbursements adopted for the estimate of the liability at the end of the previous period. The annual discount rate adopted for the calculations is assumed to be equal to the market rate at the end of the period for zero coupon bonds with a maturity equal to the average residual duration of the liability.

The amount of actuarial losses and gains deriving from changes in the estimates made is charged to profit or loss.

It should be noted that the valuation of the employee severance indemnity in accordance with IAS 19 concerned only Giordano Vini S.p.A., whose financial statements were prepared in accordance with IAS/IFRS and did not have an impact on Provinco Italia S.p.A.; the effect on this company is estimated to be insignificant.

38 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Salary benefits in the form of equity participation

The Group also remunerates its top management through stock grant plans. In such cases, the theoretical benefit attributed to the parties concerned is debited to profit or loss in the years covered by the plan, with a balancing entry in the shareholders' equity reserve. This benefit is quantified by measuring the fair value of the assigned instrument at the assignment date using financial valuation techniques, including any market conditions and adjusting the number of rights that are expected to be assigned at each reporting date.

Provisions for future risks and charges

These are provisions arising from current obligations (legal or implicit) and relating to a past event, for the fulfilment of which it is probable that an outlay of resources will be necessary, the amount of which can be reliably estimated. If the expected use of resources goes beyond the next financial year, the obligation is recorded at its present value determined by discounting the expected future cash flows discounted at a rate that also takes into account the cost of money and the risk of the liability.

Provisions are reviewed at each reporting date and, if necessary, adjusted to reflect the best current estimate; any changes in estimate are reflected in profit or loss for the period in which the change occurred.

Risks for which the occurrence of a liability is only possible are mentioned in the notes without making any provision.

Revenue from sales

Revenues are recognised to the extent that it is probable that economic benefits will flow to the entity and the amount can be measured reliably. Revenues are recognised net of discounts, allowances and returns.

Revenues from the distance selling division are recognised when the carrier delivers them to the customer. Revenues from the sale of wine, food products and gadgets are recognised as a single item.

The distance selling division accepts, for commercial reasons, returns from customers for distance selling under the terms of sale. In relation to this practice, the amounts invoiced at the time of shipment of the goods are adjusted by the amounts for which, even on the basis of historical experience, it can reasonably be expected that at the reporting date not all the significant risks and rewards of ownership of the goods have been transferred. The returns thus determined are stated in profit or loss as a reduction in revenues.

Interest income

Interest income is recorded in profit or loss on an accruals basis according to the effective rate of return method. These mainly refer to bank current accounts.

39 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Public funds

Public grants are recorded when there is a reasonable certainty that they can be received (this moment coincides with the formal resolution of the public bodies granting them) and all the requirements of the conditions for obtaining them have been met.

Revenues from public grants are recognised in profit or loss based on the costs for which they were granted.

Dividends

The distribution of dividends to shareholders, if resolved, generates a debt at the time of approval by the Shareholders' Meeting.

Cost recognition

Selling and marketing expenses are recognised in profit or loss at the time they are incurred or the service is rendered.

Costs for promotional campaigns, mailings or other means are charged at the time of shipment of the material.

Non-capitalisable research and development costs, consisting solely of personnel costs, are expensed in the period in which they are incurred.

Interest charges

Interest expense is recognised on an accruals basis, based on the amount financed and the effective interest rate applicable.

Taxes

Taxes for the period represent the sum of current and deferred taxes.

40 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Current taxes are based on the taxable income for the period. Taxable income differs from the result reported in profit or loss in that it excludes positive and negative components that will be taxable or deductible in other years and also excludes items that will never be taxable or deductible. Current tax liabilities are calculated using the rates in force at the reporting date, or if known, those that will be in force at the time the asset is realised or the liability is extinguished.

Deferred tax assets and liabilities are the taxes that are expected to be paid or recovered on temporary differences between the carrying amount of assets and liabilities in the statement of financial position and the corresponding tax value used in the calculation of taxable income, accounted for using the full liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences, while deferred tax assets are recognised to the extent that it is probable that there will be taxable results in the future that will allow the use of deductible temporary differences. These assets and liabilities are not recognised if the temporary differences arise from goodwill or the from initial recognition (not in business combination transactions) of other assets or liabilities in transactions that have no influence on either the accounting result or the taxable result. The tax benefit deriving from the carry- forward of tax losses is recognised when and to the extent that it is considered probable that future taxable income will be available against which these losses can be used.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable income will exist to permit the recovery of all or part of those assets.

Deferred taxes are calculated based on the tax rate that is expected to be in force when the asset is realised or the liability is settled.

Deferred taxes are charged directly to profit or loss, with the exception of those relating to items recognised directly in equity, in which case the related deferred taxes are also charged to equity.

Financial assets measured at fair value through other comprehensive income (FVOCI)

This category includes equity instruments for which the Group - at the time of initial recognition or at the time of transition - has exercised the irrevocable option to present the profits and losses deriving from fair value changes in shareholders' equity (FVOCI). These are classified as non-current assets under "Other financial assets at fair value through other comprehensive income".

These are initially recognised at fair value, including transaction costs directly attributable to the acquisition.

They are subsequently measured at fair value, and gains and losses arising from changes in fair value are recognised in a specific equity reserve. This reserve will not be reflected in profit or loss. In the event of disposal of the financial asset, the amount suspended at equity is reclassified to retained earnings.

41 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Dividends deriving from these financial assets are recorded in profit or loss at the time when the right to collection arises.

Financial assets at fair value through profit or loss (FVPL)

This valuation category comprises:

  • equity instruments for which the Group - at the time of initial recognition or at the time of transition - did not exercise an irrevocable option to present the profits and losses deriving from changes in fair value in shareholders' equity. These are classified as non-current assets under "Other financial assets at fair value through profit or loss";
  • debt instruments for which the Group's business model for asset management provides for the sale of the instruments and the cash flows associated with the financial asset represent the payment of outstanding capital. These are classified as current assets under "Other financial assets at fair value through profit or loss";
  • derivative instruments, with the exception of those designated as hedging instruments, classified under the item "derivative financial instruments".

These are initially recognised at fair value. Transaction costs directly attributable to the acquisition are recognised in profit or loss. They are subsequently measured at fair value, and gains and losses arising from changes in fair value are recognised in profit or loss.

Derivative financial instruments designated as hedging instruments

In line with the provisions of IFRS 9, derivative financial instruments are accounted for in accordance with the procedures established for hedge accounting only when:

  • the items covered and the hedging instruments meet the eligibility requirements;
  • at the beginning of the hedging relationship, there is a formal designation and documentation of the hedging relationship, the Group's risk management objectives and the strategy for hedging;
  • the hedging relationship meets all of the following efficacy requirements:
    • there is an economic relationship between the hedged item and the hedging instrument;
    • the effect of credit risk is not dominant with respect to the changes associated with the hedged risk;
    • the hedge ratio defined in the hedging relationship is met, including through rebalancing actions, and is consistent with the risk management strategy adopted by the Group.

These derivative instruments are measured at fair value.

Depending on the type of hedge, the following accounting treatments are applied:

  • Fair value hedge - if a derivative financial instrument is designated as a hedge of exposure to changes in the fair value of an asset or liability attributable to a particular risk, the gain or

42 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

loss from subsequent changes in the fair value of the hedging instrument is recognised in profit or loss. The gain or loss on the hedged item, for the part attributable to the hedged risk, modifies the carrying amount of that asset or liability (basis adjustment) and is also recognised in profit or loss;

  • Cash flow hedge - if a derivative financial instrument is designated as a hedge of the exposure to variability in cash flows of a recognized asset or liability or a highly probable future transaction, the effective portion of the change in fair value of the hedging derivative is recognized directly in equity, while the ineffective portion is recognized immediately in profit or loss. Amounts that have been recognised directly in equity are reclassified to profit or loss in the year in which the hedged item has an effect on profit or loss.
    If the hedge of a highly probable future transaction subsequently results in the recognition of a non-financial asset or liability, the amounts that are suspended in equity are included in the initial value of the non-financial asset or liability.

Fair value estimation

The fair value of financial instruments listed on an active market is determined on the basis of market prices at the reporting date. The reference market price for financial assets held is the current sale price (purchase price for financial liabilities).

The fair value of financial instruments that are not traded on an active market is determined using various valuation techniques and assumptions based on market conditions at the reporting date. For medium and long-term liabilities, the prices of similar listed financial instruments are compared; for the other categories of financial instruments, the cash flows are discounted.

The fair value of IRSs is determined by discounting the estimated cash flows deriving from them at the reporting date. For loans, it is assumed that the nominal value, net of any adjustments made to take int account their collectability, approximates the fair value. The fair value of financial liabilities for disclosure purposes is determined by discounting the cash flows from the contract at an interest rate that approximates the market rate at which the entity is financed.

3 Fair value measurement

In relation to financial instruments measured at fair value, the classification of these instruments based on the hierarchy of levels provided for by IFRS 13 is shown below, which reflects the significance of the inputs used in determining fair value. The following levels can be distinguished:

Level 1 - unadjusted quotations recognised on an active market for the assets or liabilities being measured;

43 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Level 2 - inputs other than the quoted prices mentioned in the previous point, which are observable on the market, either directly (as in the case of prices) or indirectly (i.e., derived from prices);

Level 3 - inputs that are not based on observable market data.

There are no assets or liabilities outstanding that are measured at fair value at 30 June 2020.

3.1 Financial risks

The Group is mainly exposed to financial risks, credit risk and liquidity risk.

Risks deriving from exchange rate fluctuations

The Group is subject to the market risk deriving from exchange rate fluctuations, as it operates in an international setting, with transactions carried out in different currencies. Exposure to risk arises both from the geographical distribution of the business and from the various countries in which purchases are made.

Risks deriving from changes in interest rates

Since financial debt is mainly regulated by variable interest rates, it follows that the Group is exposed to the risk of their fluctuation. The trend of interest rates is constantly monitored by the Company and depending on their changes it will be possible to evaluate the opportunity to adequately hedge the interest rate risk. The Group is currently not hedged, considering the insignificant impact on the income statement of interest rate changes.

Derivative financial instruments (for exchange rate hedging) in relation to which it is not possible to identify an active market, are recorded at fair value and are included in the items of financial assets and liabilities and other assets and liabilities. The relative fair value was determined using valuation methods based on market data, in particular by using specific pricing models recognised by the market.

Credit risk

Credit risk is the Group's exposure to potential losses that may result from the failure to meet obligations with counterparts.

The receivables recorded essentially comprise receivables from final consumers for whom the risk of nonrecovery is moderate and in any case of a minimum individual amount. The Company has instruments for the preventive control of the solvency of each customer, as well as instruments for monitoring and reminding of receivables through the analysis of collection flows, payment delays and other statistical parameters.

44 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Liquidity risk

The Group finances its activities both through the cash flows generated by its operations and through the use of external sources of funding and is therefore exposed to liquidity risk, represented by the fact that its financial resources are not sufficient to meet its financial and commercial obligations in accordance with agreed terms and maturities. The Group's cash flows, borrowing requirements and liquidity are controlled by considering the maturity of financial assets (trade receivables and other financial assets) and the cash flows expected from the related transactions. The Group has both secured and unsecured credit lines, consisting of revocable short-term credit lines in the form of revolving loans, current account overdrafts and signature loans.

Default and covenant risk on debt

This risk arises from the presence in loan agreements of provisions that, if certain events were to occur, would entitle the counterparties to demand that the borrower repay immediately the loaned amounts, thereby generating liquidity risk.

In detail, following the full refinancing of the debt attributable to the subsidiary Giordano Vini S.p.A. in July 2017, financial covenants were defined based on the performance of certain parameters at Group level. These covenants have been met.

Operational and management risks

The Group neither manages nor owns vineyards and purchases the raw materials necessary for the production of wines (grapes, must and bulk wine) directly from third-party producers. The market trend of these raw materials, which are natural products, largely depends on the results of the harvests, which in turn are influenced, in quantitative and qualitative terms, by climatic, phytopathological or polluting factors. Although the Group has adopted a flexible purchasing system based on the purchase of raw materials from year to year in the main Italian wine-making regions according to harvest trends and has developed consolidated relationships with suppliers, it cannot be excluded that particularly poor harvests may lead to a significant increase in the prices of raw materials or make it more difficult to obtain grapes, musts and bulk wine in the quantities and qualities needed to sustain customer demand. Moreover, the Group's catalogue is mainly composed of DOC, DOCG and IGT wines and the negative trend in harvests could affect the Group's ability to continue to maintain a basket of products centred on wines with these characteristics. These circumstances could have a negative effect on the Group's economic and financial situation.

45 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

4 Accounting standards

4.1 Accounting standards adopted

The accounting standards adopted are the same as those used for the preparation of the consolidated financial statements at 31 December 2019, to which reference should be made for further details, with the exception of:

  • the following new standards or amendments to existing standards, which are applied from 1 January 2020 but do not impact the Group:
    Amendments to IFRS 3 "Business Combinations" - Definition of Business
    These amendments introduced a new definition of business, according to which an acquisition to qualify as a business combination must include inputs and processes that contribute substantially to obtaining an output. The definition of output è modified in a restrictive sense, and it is specified that cost savings and other economic benefits are to be excluded as outputs. This change will result in that more acquisitions will qualify as asset acquisition instead of business acquisition.
    Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" - Definition of "Material"
    These amendments, in addition to clarifying the concept of materiality of transactions, focus on the definition of a consistent and single concept of materiality across the various accounting standards and incorporate the guidelines included in IAS 1 on non- material information.
    Amendments to IFRS 9, IAS 39 and IFRS 7: Reference interest rate reform (IBOR reform) These changes concern the impact on the financial statements of replacing the current benchmark interest rates with alternative interest rates: in the presence of hedging relationships impacted by the uncertainty of the reform of the benchmark rates, these changes make it possible not to make the assessments required by IFRS 9 in the presence of changes in rates. The effects of these changes on the interest rate hedging transactions carried out by the Group are constantly monitored. There are no impacts until LIBOR is replaced by the new benchmark rate (2021).
  • income taxes are recognised based on the best estimate of the weighted average rate expected for the entire financial year, in line with the indications provided by IAS 34 for the preparation of interim financial statements.

46 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

4.2 International accounting standards and/or interpretations issued but not yet effective in 2020

The new standards or interpretations already issued, but not yet effective or not yet approved by the European Union at 30 June 2020 and therefore not applicable are indicated below. They are not expected to have a material impact on the Group's financial statements at the date of application.

  • Amendments to IFRS 16 Leases - Covid-19 related rent concessions
    These amendments introduce optional accounting for lessees in the event of permanent(rental holidays) or temporaryrent reductions linked to Covid-19. Lessees may choose to account for rent reductions as variable lease payments recognised directly in profit or loss for the period in which the reduction applies, or treat them as a modification of the lease agreement with the resulting obligation to remeasure the lease liability based on the revised consideration using a revised discount rate. The amendment, in force since 1 June 2020, has not yet been endorsed by the European Union.
  • Amendments to IAS 1 - Presentation of Financial Statements - Classification of Liabilities as Current or Non-current
    The amendments clarify the principles to be applied for the classification of liabilities as current or non-current. These amendments, which will take effect on 1 January 2022, have not yet been endorsed by the European Union.
  • Amendments to IAS 16 - Property, plant and equipment - Proceeds before Intended Use
    These amendments prohibit the deduction of proceeds from selling items from property, plant and equipment while the item is being prepared for its intended use. The proceeds from the sale of the products, and the related cost of production, must be recognised in profit or loss. These amendments, which will take effect on 1 January 2022, have not yet been endorsed by the European Union.
  • Amendments to IAS 37 - Provisions, Contingent Liabilities and Contingent Assets - Onerous Contracts - Cost of Fulfilling a Contract
    These amendments specify the costs to be taken into account when assessing onerous contracts. These amendments, which will take effect on 1 January 2022, have not yet been endorsed by the European Union.
  • Annual Improvements (2018 - 2020 cycle) issued in May 2020
    These amendments are limited to certain standards (IFRS 1 First-time Adoption of IFRS, IFRS 9 Financial Instruments, IAS 41 Agriculture and illustrative examples of IFRS 16 Leases) which clarify the wording or correct omissions or conflicts between IFRS

47 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

standards. These amendments, which will take effect on 1 January 2022, have not yet been endorsed by the European Union.

Notes

5 Intangible fixed assets

Intangible fixed assets refer almost entirely to the trademarks owned by the Group. The changes are shown below:

Valori in migliaia di euro

IMMOBILIZZAZIONI IMMATERIALI

Valore netto contabile

Valore netto contabile

01/01/2020

incrementi

alienazioni

ammortamenti

riclassifiche

30/06/2020

Marchi e Brevetti

29.795

13

-

(4)

-

29.804

Software

968

41

-

(290)

149

867

Altre immobilizzazioni immateriali

1.629

-

-

(388)

1.404

2.645

Immob. immateriali in corso e acconti

82

1.740

-

-

(1.553)

269

Valore netto contabile imm. immateriali

32.474

1.793

-

(683)

-

33.585

The item "Trademarks and patents" indicated consists of the trademark Giordano Vini, consisting of the value resulting from the merger of Ferdinando Giordano S.p.A. into Giordano Vini S.p.A. (formerly Alpha S.r.l.) carried out in previous years. Also included are the trademarks owned by Provinco Italia S.p.A., amounting to €8,586 thousand, valued at the time of allocation of the purchase price in accordance with IFRS 3.

These trademarks are identified as having an indefinite useful life and, consequently, are not amortised but tested for impairment annually, as is the case for goodwill. The carrying amount is unchanged from that of the Consolidated Annual Financial Report at 31 December 2019, in line with that used for the purposes of goodwill, for which reference should be made to the next paragraph.

The increases in the first half of 2020 mainly relate to the development of the following computerisation processes concerning the company Giordano Vini S.p.A.:

  • website go-live activities and start-up of operations in new countries (Spain and Germany through the Svinando platform);
  • development of the customer base through targeted acquisition with successful marketing campaigns ("CPA");
  • revision of the applications for the solvency check and reminder of overdue receivables (VAD)
  • improvements to courier interfacing and package valorisation programmes.

48 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

6 Goodwill

Total goodwill - equal to €68,325 thousand - derives from the following business combinations: Provinco Italia S.p.A. for €11,289 thousand; Giordano Vini S.p.A. for €43,719 thousand; Pro.Di.Ve. S.r.l. for €447 thousand; Raphael Dal Bo AG for €12,870, the latter in March 2020.

The value in use corresponds to the present value of the future cash flows that are expected to be associated with the CGUs, identified as being congruent with the legal entities, Giordano Vini S.p.A., Provinco Italia S.p.A., and Raphael Dal Bo AG using a rate that reflects the specific risks of the individual CGUs at the valuation date.

The key assumptions used by management are the estimate of future increases in sales, operating cash flows, the growth rate of terminal values and the weighted average cost of capital (discount rate).

In the absence of impairment indicators, having also assessed the impact of the COVID-19 on the economic data for the first half of 2020 and the potential impact on future projections, considered limited as commented on below in this paragraph and in the Directors' Report, no interim impairment test was carried out at 30 June 2020. The impairment test carried out for the purposes of the 2019 financial statements did not reveal any impairment of the relevant CGUs.

As illustrated in the annual report for 2019, a particular analysis by the Governance Bodies of the subsidiaries was dedicated to the possible effects on the business of the company following the Covid-19(SARS-CoV-2). As is well known, the subsidiaries of Italian Wine Brands sell their products all over Europe, which is heavily hit by the Coronavirus.

In particular, sensitivity assumptions have been made in relation to the effects of the spread of Covid-19 based on first estimates. These assumptions, by their nature, contain elements of uncertainty and are subject to changes, even significant, due to the continuous changes in the scenario and the reference context, which could lead to an alteration, even significant, of normal market dynamics and, more in general, of business operating conditions.

The expected negative impact on the sensitivity analyses at EBITDA level during 2020 is not currently reflected in the financial statements for the first half of the current year. Should the crisis continue, the respective Governance Bodies will take action to implement further sensitivity analyses.

49 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

7 Land, property, plant and equipment

The change in tangible fixed assets is shown below:

Valori in migliaia di euro

IMMOBILIZZAZIONI MATERIALI

Valore lordo

riclassifiche/altre

incrementi da

Costo storico

01/01/2020

incrementi

alienazioni

aggregazioni

30/06/2020

variazioni

aziendali

Terreni e fabbricati

13.026

-

-

-

-

13.026

Impianti e macchinari

16.274

18

-

83

48

16.423

Attrezzature

723

3

-

-

-

726

Altre immobilizzazioni materiali

4.820

19

(9)

78

434

5.344

Immobil.mat in corso e acconti

164

-

-

(161)

-

3

Attività per diritto d'uso

12.055

-

-

-

-

12.055

Totale costo storico

47.062

41

(9)

-

483

47.577

IMMOBILIZZAZIONI MATERIALI

Fondi ammortamento

incrementi da

01/01/2020

ammortamenti

alienazioni

altre variazioni

aggregazioni

30/06/2020

FondI ammortamento

aziendali

Terreni e fabbricati

(3.542)

(127)

-

-

-

(3.669)

Impianti e macchinari

(12.196)

(308)

-

-

(41)

(12.545)

Attrezzature

(568)

(16)

-

-

-

(584)

Altre immobilizzazioni materiali

(4.163)

(165)

9

-

(405)

(4.724)

Immob.mat in corso e acconti

-

-

-

-

-

-

Attività per diritto d'uso

(1.194)

(612)

-

-

-

(1.806)

Totale fondo ammortamento

(21.663)

(1.227)

9

-

(446)

(23.328)

IMMOBILIZZAZIONI MATERIALI

Valore netto

Valore netto contabile

01/01/2020

incrementi

alienazioni

ammortamenti

altre variazioni

30/06/2020

Terreni e fabbricati

9.484

-

-

(127)

-

9.357

Impianti e macchinari

4.078

18

-

(308)

90

3.878

Attrezzature

155

3

-

(16)

-

143

Altre immobilizzazioni materiali

657

19

-

(165)

108

619

Immob.mat in corso e acconti

164

-

-

-

(161)

3

Attività per diritto d'uso

10.860

-

-

(612)

-

10.249

Totale valore netto contabile

25.399

41

-

(1.227)

37

24.249

Increases from business combinations refer to the direct acquisition of Raphael Dal Bo AG and the indirect acquisition of Raphael Dal Bo S.r.l. (100% owned by the former) by Provinco Italia S.p.A.

8 Equity investments

Equity investments, almost entirely attributable to the company Giordano Vini S.p.A., are detailed as follows:

50 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in euro

Paese

30.06.2020

31.12.2019

Altre imprese

BCC di Alba e Roero

Italia

258

258

Consorzio Conai

Italia

670

670

Unione Italiana Vini Scarl

Italia

258

258

Consorzio Natura è Puglia

Italia

500

500

Consorzio Granda Energia

Italia

517

517

Banca Alpi Marittime C.C. Carrù Scpa

Italia

293

293

Totale

2.496

2.496

9 Other non-current assets

This item includes €179 thousand for IRAP (regional business tax) receivable in relation to labour costs pursuant to Italian Decree Law No. 201 of 2011 and the remainder for the amount of security deposits.

10 Deferred Taxes

Deferred tax assets and liabilities arise from the following temporary differences:

Valori al 30 giugno 2020

Valori in migliaia di euro

Descrizione

Imponibile

Aliquota

Saldo

Immobilizzazioni materiali e immateriali

812

27,90%

227

Fondi per rischi e oneri

826

24,00%

198

Fondi per resi e svalutazione magazzino

1.191

27,90%

332

Interessi passivi indeducibili

1.060

24,00%

254

Fondo svalutazione crediti

2.161

24,00%

519

Compensi amministratori

364

24,00%

87

Adeguamento cambi

73

24,00%

18

Fondi per trattamento di quiescenza

136

27,90%

38

Altre

183

24,00%

44

Totale crediti per imposte anticipate

1.717

Descrizione

Aggregazioni di imprese / Avviamento

5.902

27,90%

1.647

Immobilizzazioni materiali e immateriali

29.700

27,90%

8.286

Altre

38

24,00%

9

Totale fondo imposte differite

9.942

51 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori al 31 dicembre 2019

Valori in migliaia di euro

Descrizione

Imponibile

Aliquota

Saldo

Immobilizzazioni materiali e immateriali

771

27,90%

215

Fondi per rischi e oneri

856

24,00%

205

Fondi per resi e svalutazione magazzino

1.075

27,90%

300

Interessi passivi indeducibili

1.060

24,00%

254

Oneri pluriennali non capitalizzabili ai fini IFRS

140

27,90%

39

Fondo svalutazione crediti

1.341

24,00%

322

Compensi amministratori

260

24,00%

62

Fondi per trattamento di quiescenza

182

26,28%

48

Altre IRAP - Regione Trentino

30

2,68%

1

Altre - Ires

142

24,00%

34

Totale crediti per imposte anticipate

1.481

Descrizione

Aggregazioni di imprese / Avviamento

6.163

27,90%

1.720

Immobilizzazioni materiali e immateriali

29.700

27,90%

8.286

Adeguamento cambi

35

24,00%

8

Totale fondo imposte differite

10.014

11

Inventory

The composition is shown below:

Valori in migliaia di euro

30.06.2020

31.12.2019

Materie prime e materiale di consumo

3.147

2.827

Semilavorati

14.450

12.903

Prodotti finiti

7.355

4.582

Acconti

16

22

Totale

24.968

20.334

Individual items include:

  • components for the production of bottles (glass, caps and labels), packaging, wine products (raw materials);
  • food, bulk and bottled wine, liqueurs (semi-finished products);
  • packaging and gadgets (finished products).

52 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

The figure at 30 June 2020 includes €610 thousand relating to the inventory of Raphael Dal Bo AG and Raphael Dal Bo S.r.l. (this amount is net of €249 thousand for the write-down provision for Raphael Dal Bo AG)

The carrying amount of the inventories is shown net of an provisions for bad debts of €1.4 million, the changes of which in the period are shown below:

Valori in migliaia di euro

Fondo all'1.1.20

989

Accantonamenti

216

Incrementi da aggregazioni aziendali

249

Utilizzi

(43)

Fondo alla fine del periodo

1.411

12 Trade receivables

Trade receivables at 30 June 2020 and 31 December 2019 are detailed below:

Valori in migliaia di euro

30.06.2020

31.12.2019

Crediti commerciali

28.497

26.580

Fondo svalutazione

(2.772)

(2.975)

Totale

25.725

23.605

Changes in the provision for bad debts during the first half of 2020 were as follows:

Valori in migliaia di euro

30.06.2020

31.12.2019

Valore iniziale

2.975

2.851

Accantonamenti

504

1.232

Incrementi da aggregazioni aziendali

41

-

Utilizzi

(749)

(1.108)

Fondo alla fine del periodo

2.772

2.975

Provisions were made based on the estimated realizable value of the receivables, also in light of the possible risks of total or partial non-recoverability thereof and according to economic

53 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

and statistical criteria, in compliance with the principle of prudence. In addition, the provisions are deducted from the total of the item on a lump-sum and indistinct basis.

Specifically, for the write-down of receivables relating to the distance selling division, the Group applies a simplified approach, calculating the expected losses over the entire life of the receivables from the time of initial recognition. The Group uses a matrix based on historical experience and linked to the ageing of the receivables themselves, adjusted to take into account forecasting factors specific to certain creditors.

There are no receivables with a contractual duration of more than 5 years.

13 Other assets

Other assets at 30 June 2020 and 31 December 2019 are detailed in the following table:

Valori in migliaia di euro

30.06.2020

31.12.2019

Crediti verso distributori per contrassegni

167

164

Depositi cauzionali

477

362

Altri

1.070

612

Anticipi a fornitori

394

337

Ratei e Risconti attivi

383

146

Totale

2.492

1.622

14 Current tax assets

Tax receivables at 30 June 2020 and 31 December 2019 are detailed in the following table:

Valori in migliaia di euro

30.06.2020

31.12.2019

Crediti IVA

896

2.227

Crediti IRAP

-

431

Crediti IRES

-

327

Altri

42

26

Totale

938

3.011

54 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

With effect from the 2016 period, the Parent Company (together with its subsidiaries Giordano Vini S.p.A. and Provinco Italia S.p.A.) has opted for the national IRES tax consolidation scheme, the effects of which are also reported in the economic and financial results at 30 June 2020.

Participation in tax consolidation is governed by specific regulations that apply throughout the period of validity of the option.

The economic relations of tax consolidation are summarised below:

  • for the years with positive taxable income, the subsidiaries pay to the consolidating company the higher tax it owes to tax authorities;
  • consolidated companies with negative taxable income receive from the parent company a compensation corresponding to 100% of the tax savings realised at Group level and recorded on an accrual basis. Compensation is paid only when it is actually used by the Parent Company, for itself and/or for other companies in the Group;
  • in the event that the Parent Company and its subsidiaries do not renew the option for national consolidation, or in the event that the requirements for continuing national consolidation are no longer met before the end of the three-year period of validity of the option, the tax losses carried forward resulting from the tax return are attributed to the consolidating company or entity.

15 Cash and cash equivalents

A breakdown of cash and cash equivalents at 30 June 2020 and 31 December 2019 is provided in the table below:

Valori in migliaia di euro

30.06.2020

31.12.2019

Depositi bancari

15.532

30.554

Depositi postali

2.255

1.379

Assegni

2

677

Cassa

34

43

Totale

17.822

32.653

16 Shareholders' equity

The company's shareholders' equity is made up as follows:

55 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in euro

30.06.2020

31.12.2019

Capitale sociale

879.854

879.854

Riserva legale

175.971

175.971

Riserva da sovrapprezzo azioni

64.565.446

64.565.446

Riserva per utili attuariali su piani a benefici definiti

(59.555)

(61.213)

Riserva per stock grant

-

1.192.129

Riserva da traduzione

14.310

-

Riserva per acquisto azioni proprie

49.812

(2.800.816)

Altre riserve

2.924.964

2.888.974

Utili / (perdite) pregresse

21.711.725

14.468.557

Utile / (perdita) del periodo

5.348.063

7.899.234

Totale riserve

94.730.735

88.328.282

Totale patrimonio netto di Gruppo

95.610.589

89.208.136

Patrimonio netto di terzi

-

-

Totale patrimonio netto

95.610.589

89.208.136

Share capital

The share capital of Italian Wine Brands is equal to €879,853.70 divided into 7,402,077 ordinary shares, all without indication of the nominal value, unchanged compared to 31 December 2019.

Reserves

The share premium reserve was generated as a result of listing that took place in 2015.

The reserve for defined-benefit plans is generated by the actuarial profits/(losses) deriving from the valuation of the accrued termination benefits in accordance with IAS 19.

Other reserves include €3,112 thousand in the reserve for transactions "under common control" generated by the first consolidation of the company Giordano Vini S.p.A. during the first half of 2015, net of a negative reserve of €498 thousand generated by the direct recognition in equity, in accordance with IAS 32, of the expenses incurred by the parent company in relation to the aforementioned capital transactions net of the related deferred taxes.

At 30 June 2020, the Parent Company held 3,985 ordinary shares, representing 0.05% of the ordinary share capital in circulation.

The reconciliation schedule between the shareholders' equity and the result of the parent company and those of the consolidated companies is set out below:

56 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in euro

30 giugno 2020

Risultato

Patrimonio

dell'esercizio

netto

Patrimonio netto IWB SpA - Principi ITA GAAP

8.437.273

87.845.215

Differenze nei principi contabili

620.644

2.966.340

Patrimonio netto IWB SpA - Principi IFRS

9.057.917

90.811.556

Eliminazione del valore di carico delle partecipazioni consolidate:

Valore di carico delle partecipazioni consolidate

-

(54.255.982)

Pro-quota del patrimonio delle partecipazioni consolidate al netto di differenze di

5.442.445

59.137.502

consolidamento

Dividendi da controllate

(9.271.662)

-

Rettifiche di consolidamento per operazioni compiute tra società consolidate

119.362

(82.487)

Patrimonio netto e risultato d'esercizio di competenza del Gruppo

5.348.062

95.610.589

Quota di competenza di terzi

-

-

Patrimonio netto e risultato consolidati

5.348.062

95.610.589

17 Financial payables

The situation at 30 June 2020 is as follows:

Valori in migliaia di euro

30.06.2020

Medio/lungo

Lungo termine

Breve termine

termine (entro 5

Totale

anni)

(oltre 5 anni)

Finanziamento pool - Senior

1.625

16.224

-

17.849

Finanziamenti a breve termine chirografi

2.039

-

-

2.039

Finanziamenti GV revolving

2.000

7.000

-

9.000

Altri finanziamenti oltre es. chirografari

-

1.158

-

1.158

Ratei passivi fin. e oneri da liquidare

45

-

-

45

Totale Banche

5.709

24.382

-

30.091

Debiti verso società di factoring

-

-

-

-

Totale altri finanziatori

-

-

-

-

Totale

5.709

24.382

-

30.091

57 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

The statement of Group financial payables at 31 December 2019 is given below for comparison purposes:

Valori in migliaia di euro

31.12.2019

Medio/lungo

Lungo termine

Breve termine

termine (entro 5

Totale

anni)

(oltre 5 anni)

Finanziamento pool - Senior

3.250

16.146

-

19.396

Finanziamenti a breve termine chirografi

1.500

-

-

1.500

Finanziamenti GV revolving

2.000

7.000

-

9.000

Altri finanziamenti oltre es. chirografari

407

1.821

-

2.228

Mutuo IWB

-

-

-

-

Ratei passivi fin. e oneri da liquidare

49

-

-

49

Totale Banche

7.206

24.967

-

32.173

Debiti verso società di factoring

26

-

-

26

Totale altri finanziatori

26

-

-

26

Totale

7.232

24.967

-

32.199

The table below shows the changes in financial liabilities

Valori in migliaia di euro

31.12.2019

Erogazioni /

Rimborsi / Altre

Adeguamento

Oneri/spese

30.06.2020

Altre variazioni

variazioni

fair value

gestione

Finanziamento pool - Senior

19.396

-

(1.625)

78

-

17.849

Finanziamenti a breve termine chirografi

1.500

539

-

-

-

2.039

Finanziamenti GV revolving

9.000

4.000

(4.000)

-

-

9.000

Altri finanziamenti oltre es. chirografari

2.228

-

(1.074)

3

-

1.157

Ratei passivi finanziari GV

49

45

(49)

-

-

45

Totale Banche

32.173

4.584

(6.748)

81

-

30.091

Debiti verso società di factoring

26

3.411

(3.437)

-

-

-

Totale altri finanziatori

26

3.411

(3.437)

-

-

-

Totale

32.199

7.995

(10.185)

81

-

30.091

The bank debt at 30 June 2020 consisted of the following loans:

  • Medium/long-termloan granted to Giordano Vini S.p.A. for a total of €35 million paid out on 19 July 2017 and expiring on 30 June 2024, divided as follows:
    o Amortizing" tranche totalling €28 million with repayment in increasing six- monthly instalments of principal in arrears and a rate, adjusted as from 1 July
    2018 following compliance with the "Margin Variation" contract clause, equal to
    6-month Euribor plus 1.60%. At 30 June 2020, the residual debt valued using the amortised cost method amounted to €17.9 million. Revolving tranche of a total of €7 million with interest rate, adjusted from 1 July 2018 following compliance

58 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

with the "Margin Variation" contract clause, equal to Euribor at 1, 3 or 6 months depending on the relative period of use plus 1.15% used in this way:

  • €3 million renewed on 10 May 2019 with a duration of 3 months and renewed again at the following deadlines;
  • €4 million renewed on 10 May 2019 with a duration of 6 months and renewed again at the following deadlines;

The medium/long-term loan provides for financial covenants based on the trend of certain parameters at consolidated Group level. These covenants have been largely met at 31 December 2019.

The loan also includes a clause to reduce or increase the spread on the Euribor (the so- called "Margin Variation") dependin gon the result of the ratio of net financial debt to annual EBITDA. This ratio was less than 1.0x at 31 December 2017 so as to activate the 0.35% spread reduction clause.

Also at 30 June 2020, the ratio of Net Financial Debt to EBITDA (LTM) was less than 1.0x, confirming the same rate conditions for the following year.

  • Short-term"hot money" loan granted by Banca d'Alba to the subsidiary Giordano Vini S.p.A. with current account credit facility of €1.5 million, renewed quarterly at a rate of
    1.25%. The maturity of the loan is fixed at the maturity of each quarter.
  • Medium-termloan of €2 million granted to the subsidiary Giordano Vini S.p.A. on 20 February 2017 by Intesa Sanpaolo, with repayment in quarterly instalments and extinction on 20 February 2022 at a rate equal to the 3-month Euribor increased by a spread of 2.10%. The residual debt at 30 June 2020 valued using the amortised cost method amounts to €0.7 million.
  • Short-term"Revolving" loan granted on 6 May 2019 to the subsidiary Giordano Vini
    S.p.A. by Crédit Agricole for an amount of €2.0 million with quarterly maturity and a rate equal to the 3-month Euribor plus a spread of 0.60%.
  • Medium-termloan of €2 million granted to the subsidiary Provinco Italia S.p.A. disbursed on 27 December 2018 repayable in quarterly instalments and extinguished on 27 December 2021, at a rate equal to the 3-month Euribor plus a spread of 1.75%. The residual debt at 30 June 2020 amounts to €1.0 million.

59 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Financial payables are recorded in the financial statements at the value resulting from application of the amortised cost, determined as the initial fair value of the liabilities net of the costs incurred to obtain the loans, increased by the cumulative amortisation of the difference between the initial value and the value at maturity, calculated using the effective interest rate.

In relation to the above loans, certain commitments have been issued to guarantee them.

The aforesaid loan agreements contain similar clauses and practices for this type of transaction, such as, for example: (i) a financial covenant (calculation at the level of the Italian Wine Brands Group) based on the performance of certain financial parameters at the consolidated level of the group; (ii) disclosure obligations in relation to the occurrence of significant events for the Company, as well as corporate disclosure; (iii) commitments and obligations, usual for such loan transactions, such as, by way of example, limits on the assumption of financial debt and the sale of its assets, prohibition to distribute dividends or reserves where certain financial parameters are not met.

In order to guarantee the correct and timely fulfilment of the Company's obligations under the aforementioned medium-term loans, guarantees have been provided in line with market practices for this type of transaction issued by the parent company IWB.

"Liabilities for rights of use" refer to the entry into force from 1 January 2019 of IFRS 16, which requires the recording of lease contracts in the accounts, indicating under non-current assets the amount corresponding to the "Right of use" as a balancing entry to a liability calculated as the present value of future cash disbursements relating to the contract.

18 Termination benefits

Defined contribution plans

In the case of defined contribution plans, the Company pays contributions to public or private insurance institutions on the basis of a legal or contractual obligation, or on a voluntary basis. By paying the contributions, the Group fulfils all its obligations.

Payables for contributions to be paid at the reporting date are included in the item "Other current liabilities"; the cost pertaining to the period accrues on the basis of the service rendered by the employee and is recorded in the item "Personnel costs" in the area of belonging.

Defined benefit plans

60 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Employee benefit plans, which can be classified as defined benefit plans, are represented by the termination benefits (TFR); the liability is instead determined on an actuarial basis using the "projected unit credit" method. Actuarial gains and losses determined in the calculation of these items are shown in a specific equity reserve. The changes in the liability for termination benefits at 30 June 2020 are shown below:

Valori in migliaia di euro

2020

2019

Fondo all'1.1

651

656

Accantonamenti

18

41

Anticipi corrisposti nel periodo

-

(12)

Indennità liquidate nel periodo

(63)

(65)

(utile) / perdita attuariale

(2)

32

Oneri finanziari

(1)

(1)

Fondo alla fine del periodo

603

651

The component "allocation of costs for employee benefits" and "contribution/benefits paid" are recorded in profit or loss under the item "Personnel costs" in the area to which they refer. The component "financial income/(expenses)" is recognised in profit or loss under "Financial income/(expenses)", while the component "actuarial income/(expenses)" is recognised under other comprehensive income and transferred to a Shareholders' equity reserve called "Reserve for defined benefit plans".

The main actuarial assumptions used are as follows:

Assunzioni attuariali

30.06.2020

31.12.2019

Tasso di sconto

0,20%

0,85%

Tasso di inflazione

1,50%

1,50%

Percentuale Media Annua di Uscita del Personale

8,24%

9,10%

19 Provisions for risks and charges

During the period, the item changed as follows:

61 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in migliaia di euro

Non correnti

Correnti

Totale

Fondo all'1.1.2019

1.071

-

1.071

Accantonamenti

-

-

-

Utilizzi

(77)

-

(77)

Fondo al 31.12.2019

994

-

994

Valori in migliaia di euro

Non correnti

Correnti

Totale

Fondo all'1.1.2020

994

-

994

Accantonamenti

-

-

-

Utilizzi

(3)

-

(3)

Fondo al 30.06.2020

991

-

991

Non-current liabilities mainly include:

  • provisions made at Giordano Vini S.p.A. for legal disputes with suppliers for €826 thousand;
  • a provision of €136 thousand relating to potential liabilities relating to the agents' termination benefit set aside by Provinco Italia S.p.A., determined taking into account collective economic agreements and the maximum limit of Article 1751 of the Italian Civil Code.

20 Trade payables

This item includes all trade payables with the following geographical distribution:

Valori in migliaia di euro

30.06.2020

31.12.2019

Fornitori Italia

43.162

44.754

Fornitori Estero

1.754

996

44.916

45.750

62 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

21

Other liabilities

Other liabilities are made up as follows:

Valori in migliaia di euro

30.06.2020

31.12.2019

Verso personale dipendente

1.126

784

Verso enti previdenziali

492

470

Verso amministratori

85

11

Ratei e Risconti passivi

444

313

Altri

2.347

87

Totale correnti

4.494

1.665

Payables to employees mainly include wages and salaries for June 2020 paid in July 2020 and deferred compensation for vacation and public holidays accrued but not yet taken.

The item deferred income mainly consists of the portion pertaining to future years of grants for plants obtained in 2010 and 2011.

The item Others includes the payable for the deferred price component (so-called Earn Out) relating to the acquisition of Raphael Dal Bo AG by Provenco Italia S.p.A. (€ 1,885 thousand)

22

Current tax liabilities

These are made up as follows:

Valori in migliaia di euro

30.06.2020

31.12.2019

IVA

1.980

1.211

IRES

2.157

-

Ritenute IRPEF

236

310

IRAP

146

-

Accise

718

467

Altre imposte

258

187

Totale

5.494

2.175

63 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

23 Revenues from sales and other revenues

Revenues from sales and other revenues and income at 30 June 2020, compared with those of the two previous periods, are detailed below:

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

∆ % 19/20

Cagr 18/20

Ricavi delle Vendite - Italia

19.341

15.395

15.750

25,63%

10,81%

Ricavi delle Vendite - Estero

72.604

54.411

53.840

33,44%

16,13%

Svizzera

21.172

12.870

12.680

64,51%

29,22%

Germania

20.219

15.775

14.705

28,17%

17,26%

Inghilterra

9.056

7.238

5.162

25,12%

32,45%

Austria

8.473

7.062

6.861

19,97%

11,13%

Danimarca

2.917

2.686

3.212

8,60%

(4,70%)

Francia

2.864

2.372

2.694

20,72%

3,10%

Belgio

1.594

418

630

281,24%

59,04%

Olanda

912

445

360

105,04%

59,20%

USA

836

1.338

653

(37,54%)

13,13%

Svezia

828

813

786

1,84%

2,63%

Canada

540

346

462

55,95%

8,07%

Cina

306

776

722

(60,59%)

(34,92%)

Altri paesi

2.889

2.272

4.913

27,17%

(23,31%)

Altri ricavi

213

267

350

(20,23%)

(21,99%)

Totale Ricavi delle Vendite

92.158

70.073

69.940

31,52%

14,79%

24 Purchase costs

Purchase costs refer to Giordano Vini S.p.A. for €24.9 million (€18.0 million at 30/06/2019), to Pro.Di.Ve. S.r.l. for €0.45 million (€0.18 million at 30/06/2019), to Provinco Italia S.p.A. for €28.8 million (€24.7 million at 30/06/19), to Raphael Dal Bo AG for €2.0 million and to Raphael Dal Bo S.r.l. for €0.4 million.

25 Costs for services

The costs for services at 30 June 2020, compared with those of the previous year, are detailed below:

64 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in migliaia di euro

30.06.2020

30.06.2019

30.06.2018

Servizi da terzi

5.187

4.263

3.493

Trasporti

7.093

5.332

6.000

Spese di postalizzazione

2.076

2.115

1.962

Canoni ed affitti

294

214

819

Consulenze

615

658

930

Costi di pubblicità

3

2

4

Utenze

410

378

276

Compensi amministratori sindaci e ODV

437

445

407

Manutenzioni

149

100

89

Costi per outsourcing

3.619

3.237

2.702

Dazi e accise su vendite

3.877

1.510

1.573

Provvigioni

71

46

93

Altri costi per servizi

1.564

1.549

1.794

Totale

25.395

19.849

20.142

The compensation of directors, statutory auditors and supervisory body is detailed below:

Valori in migliaia di euro

30.06.2020

30.06.2019

Amministratori

393

402

Sindaci

41

40

ODV

3

3

Totale

437

445

In the first half of 2020, fees for the Independent Auditors amounted to €31 thousand (€40 thousand at 30 June 2019).

26 Personnel costs

Personnel costs at 30 June 2020, compared with those of the previous year, are detailed below:

Valori in migliaia di euro

30.06.2020

30.06.2019

Salari e stipendi

3.042

2.654

Oneri sociali

939

850

Trattamento di fine rapporto

154

161

Stock Grant

-

-

Costo di somministrazione

62

37

Altri costi

18

4

Totale

4.215

3.706

65 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

The following table shows the number of employees:

N. puntuale

N. medio

N. puntuale

N. medio

30.06.2020

30.06.2020

30.06.2019

30.06.2019

Dirigenti

6

7

6

5

Quadri

13

13

9

9

Impiegati

123

122

127

127

Operai

16

18

16

17

Totale

158

159

158

158

27 Other operating costs

The item "Other operating costs" amounts to €571 thousand and mainly includes: non- recurring expenses of €274 thousand relating to the closing of the credit position linked to an advertising barter contract dating back to 2016, non-deductible taxes and duties, and non- deductible VAT due on a pro-rata basis. The item in the comparative financial year shows a balance of €776 thousand.

28 Write-downs

The item relates entirely to the subsidiary Giordano Vini S.p.A. and to the write-down of trade receivables recorded in the period.

29 Financial income and expenses

Financial income and expenses are detailed in the following tables:

Valori in migliaia di euro

30.06.2020

30.06.2019

Su conti correnti

10

9

Differenze cambio

60

42

Altri

40

1

Totale

110

52

66 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Valori in migliaia di euro

30.06.2020

30.06.2019

Su finanziamenti

(291)

(311)

Su passività per diritti d'uso

(158)

(177)

Su conti correnti bancari

(3)

(20)

Su strumenti finanziari

-

-

Commissioni e spese bancarie

(149)

(115)

Differenze cambio

(117)

(53)

Altri

(25)

(47)

Totale

(742)

(723)

In detail, interest on loans includes:

  • interest paid on medium/long-term loans;
  • Interest expense on bank current accounts mainly relating to the use of the current account overdraft with the various banks;
  • realised exchange differences and end-of-period adjustments relating to foreign currency items;
  • bank commissions and charges, including those for sureties.

30 Taxes

The taxes at 30 June 2020, compared with those of the previous year, are detailed below:

Valori in migliaia di euro

30.06.2020

30.06.2019

IRES

(1.546)

(1.111)

IRAP

(217)

(42)

Imposte di esercizi precedenti

(5)

37

Totale imposte correnti

(1.768)

(1.115)

Imposte anticipate

(46)

2

Imposte differite

73

74

Totale fiscalità differita

27

75

Totale

(1.741)

(1.040)

31 Related-party transactions

At 30 June 2020 there was:

67 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

  1. a commercial lease agreement entered into on 1 February 2012 between Provinco Italia S.p.A. and Provinco S.r.l. pursuant to which Provinco S.r.l. leased the property located in Rovereto (TN) - Via per Marco, 12/b to Provinco Italia S.p.A.; the lease is valid for six years (until 31 January 2018) with tacit renewal for the same period unless notice of termination is given 12 months before expiry; the agreed rent is equal to €60 thousand per year plus VAT.
    The above relationship is regulated at conditions at arm's length.

32. Atypical and unusual transactions

Pursuant to Consob communication no. DEM/6064293 of 28 July 2006, during the period the Group did not carry out atypical or unusual transactions, as defined by the communication itself, according to which atypical and/or unusual transactions are those that, due to their significance/relevance, the nature of the counterparties, the object of the transaction, the method of determining the transfer price and the timing of the event, may give rise to doubts regarding: the correctness/completeness of the information in the financial statements, the conflict of interest, the safeguard of the company's assets, the protection of non-controlling interests.

33. Grants received

During 2019, the subsidiary Giordano Vini S.p.A. received grants of €20,195.

The following table summarises the grants received in the periods 2018 and 2019: the data relating to the paying entities, their amount and a brief description of the reasons for the benefit.

Valori in Euro

Soggetto erogante

Contributo ricevuto

Causale

AGEA - per tramite ATI Bacco International

33.394

Contributo OCM 2018 esportazioni mercato Svizzera

AGEA - per tramite ATI DOP in the World

20.195

Contributo OCM 2019 esportazioni in mercati Extra UE

Totale

53.589

*****

68 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

For the Board of Directors

The Chief Executive Officer

Alessandro Mutinelli

69 | CONSOLIDATED HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2020

Disclaimer

IWB - Italian Wine Brands S.p.A. published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 13:24:04 UTC


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TrendsBearishBullishBullish
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