PRESS RELEASE Massimo Zanetti Beverage Group S.p.A.: the BoD approves the interim report at September 30, 2017. During the first nine months of 2017, MZB Group continued its trend in improving the product mix with a composition providing greater profitability. This was reflected principally in the performance of the Food Service and Mass Market channels, which together represented 51.0% of the sales volumes and 59.1% of consolidated revenue, whereas the Single Serve segment recorded a rise of 56.6% in volumes and 34.2% in revenues. The guidance 2017 has been confirmed with the only exception of volumes which will be affected by the softness in the Americas in the Private Label channel. The expectations for the volumes 2017 have been adjusted to the market condition and are in line with 2016 values.
  • Roasted coffee sales volumes were substantially in line with the same period in the previous year, amounting to 95,562 tons.
  • Consolidated revenue of Euro 708.5 million, up by 5.6% compared to the first nine months of 2016.
  • Gross profit up by 2.9% to Euro 292.1 million
  • Consolidated Adj. EBITDA was Euro 49.2 million, up by 6.6% compared to the same period in 2016.
  • Net Income for the period amounted to Euro 8.2 million.
  • Net financial indebtedness of Euro 240.8 million.

Villorba (Treviso, Italy), November 09, 2017 - Today, the Board of Directors of Massimo Zanetti Beverage Group S.p.A. ("MZBG" or the "Company") approved the interim report as at September 30, 2017.

Volumes

During the first nine months of 2017, the MZB Group had sales volumes of roasted coffee totalling 95,562 tons, substantially in line (-1.1%) with the same period in the previous year. Excluding the contribution of Nutricafes in the first eight months, the roasted coffee sales volumes would have been 92.638 tons.

In the first nine months of 2017, the Food Service channel recorded sharp growth of 14.5% with a total of 9,739 tons of coffee sold. This increase involved, in particular, the geographical areas of Europe and Asia, providing a clear sign of the strong priority given to this channel by the Group. The Food Service channel accounted for 9.8% of total volumes for the MZB Group,

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continuing to increase its weight from quarter to quarter. Excluding the contribution of Nutricafes the channel grew by 2.3%.

During the period, the Mass Market channel recorded a slight reduction in volumes of 1.4% compared to the same period in the previous year, amounting to 39,348 tons. Excluding the contribution of Nutricafes the channel decreased by 3.2%. In the first nine months of 2017, the Mass Market channel accounted for 41.2% of total volumes for the MZB Group.

The Private Label channel showed a decline of 3.5% in the first nine months of 2017, to 46,841 tons, mainly affected by performance in the Americas. Excluding the contribution of Nutricafes the channel decreased by 6.0%. The Private Label channel accounted for 49,0% of the MZB Group's total volumes.

The Single Serve segment recorded growth at a Group level of 56.6% compared to the first nine months of 2016, thanks to the contribution from all geographical areas and, in particular, from the Segafredo, Nicola, Kauai, and San Marco brands.

At a geographical level, in the first nine months of 2017, the Americas achieved 56,412 tons, with a drop of 5.6% compared to the same period in the previous year, mainly due to the performance of the Private Label and Mass Market channels. The Americas accounted for 59.0% of total volumes for the MZB Group.

Southern Europe posted totalvolumes of21,908 tons with an increase of9.3% compared to the same period in the previous year. This growth included all distribution channels with a more marked increase in the Food Service channel. Nutricafes added to the region's growth with 2.924 tons. Excluding this contribution Southern Europe would have decreased by 5.3%.Southern Europe accounted for22.9% of total volumes of the MZB Group.

In the first nine months of 2017, Northern Europe recorded 15,326 tons of roasted coffee sold, substantially unchanged compared to the same period in 2016. Northern Europe accounted for 16.0% of total volumes of the Group.

Roasted coffee sales volumes in theAsia, Pacific and Cafès division came to1,916 tons in the first nine months of 2017,with an increase of 23.1% compared to the same period in 2016. This increase was marked in the second quarter also due to the agreement reached with the "Cafè de Coral" catering chain. Asia, Pacific and Cafès accounted for2.0% of the MZB Group'stotal volumes.

Consolidated revenue

The consolidated revenue of the MZB Group in first nine months of 2017 totalled Euro 708.5 million, up by 5.6% over the same period in the previous year. Excluding the contribution of

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Nutricafes revenues were at Euro 684,2 million, an increase of 2.0% over the same period of 2016.

Revenue grew in all geographical areas and in all distribution channels, despite the substantial stability in sales volumes.

The increase in revenue can be attributed to the more effective mix of channels and products, as well as to the improvement in average sales prices.

With regard to the distribution channels, the Food Service channel grew by 11.0% compared to the same period in the previous year and contributed 22.2% of the MZB Group's consolidated revenue. The Mass Market channel grew by 4.0%, with a contribution to consolidated revenue of 36.9%. In the first nine months of 2017, the Private Label channel grew by 3.9% and contributed 34.6%.

Revenue from branded products in the Food Service and Mass Market channels followed the same trend already seen with the progress in volumes and represents the strategic development in the sales mix.

The Americas remained the main geographical area in terms of revenue, accounting for47.3% of the MZB Group's revenue.Southern Europe represented the second most important geographical area, contributing25.8% of revenue.Northern Europe contributed19.0% of revenue, whileAsia, Pacific, and Cafès1contributed8.0%.

Revenue from the Single Serve segment grew by 34.2% during the period, compared with the first nine months of 2016.

Gross profit

Consolidated Gross Profit grew by 2.9% compared to the first nine months of 2016 and reached Euro 292.1 million. The increase in Gross Profit generated by the sale of roasted coffee is largely attributable to the improved mix of channels and products and an improvement in average sales prices compared to green coffee purchase costs, which partially offset the reduction in volumes.

Organic Gross Profit per Kg continued to grow, rising from EUR/kg 2.55 in the first nine months of 2016 toEUR/kg 2.57 in the same period of 2017.

The Gross Margin stood at 41.2% in the first nine months of 2017.

1 This geographical area includes the revenue generated by the international network of cafés.

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EBITDA

Adjusted EBITDA for the period wasEuro 49.2 million, up by6.6% over the same period of 2016, when it totalled Euro 46.2 million. If we include the one-off costs incurred for the merger of Nutricafès and Segafredo Zanetti Portugal, the EBITDA would be Euro 47.4 million.

The EBITDA Margin in the first nine months of 2017 was 6.9%

Operating Profit

The Operating profit of the MZB Group in the first nine months of 2017 amounted toEuro 19.8 million.

Net Income for the period

Net Income for the period in the first nine months of 2017 reachedEuro 8.2 million; excluding the one-off costs the amount would be in line with the same period of 2016, when the figure was Euro 10.5 million.

Net financial indebtedness

Net financial indebtedness of the MZB Group at September 30, 2017 was Euro 240.8 million, showing an increase of Euro 19.9 million compared to December 31, 2016.

Guidance

Based on the results of the first 9 months of 2017 and of the current market trends, the guidance for 2017 at Group level is confirmed at Gross Profit, EBITDA Adjusted and Net Financial Position level. Volumes instead will be affected by the softness that the Americas is experiencing in the Private Label channel. As a consequence, the forecast for 2017 volumes has been adjusted to the market condition and are now expected to be in line with those of 2016.

Merger of Nutricafés S.A. and Segafredo Zanetti Portugal SA

The merger of Nutricafés S.A. and Segafredo Zanetti Portugal S.A. was completed with the establishment of MZB Iberia. The operation aims to improve process efficiency and to contain operating costs and will start to have positive effects from the fourth quarter of 2017; it involved non-recurrent costs of Euro 1.8 million. This operation should provide the Group with significant efficiencies over the coming years, starting with 2018.

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