Campari Group

30/04/2003

Shareholders' meeting approved unanimously 2002 accounts

Milan, 30 April 2003 - Today, the shareholders’ meeting of Davide Campari-Milano S.p.A. adopted unanimously the Company’s 2002 accounts.

The meeting approved unanimously a dividend of € 0.88 per share gross of all applicable withholding taxes (unchanged to last year), payable as from 22 May 2003, with detachment of coupon n.3 to take place on 19 May 2003.

The dividend has full tax credit.

Moreover, the meeting approved unanimously the granting of powers to the Directors to issue non convertible bonds, under article 2420 ter of the Italian Civil Code.

The power of attorney is aimed to reduce significantly the complexity and implementation timeframe for an issuing of bonds compared to an approval by shareholders' resolution.

Therefore, the Company will be better positioned to exploit timely any opportunities offered by financial markets, whenever it may wish to raise debt to finance future expansion plans.

2002 consolidated results

As announced on 26 March, 2002 closed with strongly growing results, thanks also to the two important acquisitions completed early in the year: Skyy Spirits, LLC and Zedda Piras S.p.A. and Sella & Mosca S.p.A., whose integration was successfully completed during the year.

Group sales were € 660.6 million, up 33.7%.

External growth was 32.4%, attributable to Skyy Spirits, LLC (for 26%) and to Zedda Piras S.p.A. and Sella & Mosca S.p.A. (for 6.3%).

Organic growth was 5.1% (1.3% after exchange rate effect).

As to sales breakdown by geographic areas, for the first year in the Group’s history sales on international markets overtook those on the Italian market (47.1% of consolidated net sales), demonstrating the Group’s success in the pursuit of its strategy, focused on international expansion.

Trading profit was € 180.8 million, up 32.5%, with a percentage of sales of 27.4%.
EBITDA was €160.0 million, up 39.7%, with a percentage of sales of 24.2%.
EBITA was €142.4 million, up 42.3%, with a percentage of sales of 21.6%.
EBIT was € 114.7 million, up 29.4%, with a percentage of sales of 17.4%.

Consolidated net income was € 86.7 million, up 36.7%; a contribution to this result came, among other things, from the tax cuts provided by the Tremonti bis law investments pertaining to the construction of the new plant in Novi Ligure.

Consolidated shareholders’ equity as of 31 December 2002 amounted to € 478.9 million.
As of 31 December 2002 net financial debt was € 198.8 million.

The change in the net financial position from 31 December 2001, when it was positive for € 96.6 million, is due to payments for the acquisitions made; it should be noted that the Group’s debt has been significantly reduced from € 239.4 million as of 30 June 2002, thanks to considerable cash generation.

The Campari Group
The Campari Group is the sixth player in the global spirits sector, trading in over 190 markets around the world with a leading position in the Italian and Brazilian markets and a strong presence in the USA, Germany and Switzerland. Following an intensive acquisition campaign undertaken over the last few years, the Group has an extensive portfolio that spans three business segments: spirits, wines and soft drinks. The Group’s portfolio includes a combination of strong international brands, such as Campari, SKYY Vodka, Cynar and Cinzano and leading local brands, such as CampariSoda, Campari Mixx, Crodino, Sella & Mosca, Zedda Piras, Biancosarti, Lemonsoda, Oransoda and Pelmosoda in Italy, SKYY Blue in the United States, Ouzo 12 in Greece and in Germany, Dreher, Old Eight, Drury’s and Liebfraumilch in Brazil and Gregson’s in Uruguay. The Group has 1,400 employees, and shares of the parent company Davide Campari-Milano S.p.A have been listed on the Milan stock exchange since July 2001.

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