RESULTS 2H 2016 Legal Notice

The present document contains forward looking statements regarding the intentions, expectations, or forecasts of Deoleo, S.A. or its management as of the date of the creation of this document.

These forward looking statements do not constitute guarantees of their future fulfillment, as they are conditioned by risks, uncertainty and other relevant factors, which may cause developments and final results to differ materially from those stated in these intentions, expectations, or forecasts.

Deoleo, S.A. is not required to inform the public of the results of any revisions that may be made to these statements to adapt them to facts or circumstances subsequent to this presentation, including, among others, changes in the Company's business, in its business development strategy, or any other possible circumstances that may arise.

That which is set forth in this declaration must be taken into consideration by all persons or entities that may have to adopt decisions or elaborate or disseminate opinions relating to stocks issued by Deoleo, and in particular, by the analysts and investors who are recipients of the present document.

Documentation and public information communicated or registered by Deoleo with supervisory agencies, and in particular, with the National Stock Market Commission, may be consulted.

The present document contains unaudited financial information, and because of this, does not constitute definitive information, and it may be modified in the future.

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Table of Contents

  1. Important Aspects of the Period

  2. Raw Material and Markets

  3. Profit and Loss by Business Unit

  4. Profit and Loss Account

  5. Balance Sheet Data

  6. Conclusions

  7. Other Information:

    1. Impairment Test

    2. Non-Recurring Expenses

    3. Industrial Plan in Italy

    4. Regulatory and Taxation Changes

    5. Layoffs

      • Annexes

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      1. Important Aspects of the Period

      • EBITDA from the corporate year was €46.1 million, which represents a growth of 29.7% with respect to the previous corporate year.

      • During the 4Q, this positive trend continued compared to the same period of the previous

        year shown in previous quarters.

      • In conformity with the strategic decision to concentrate on profitable sales, volume has dropped approximately 22% whereas the value of sales has dropped 15% compared to 2015. This is evidence of the gradual incorporation of raw material prices into the product sold, with the resulting recovery of margins, in the following way:

        • Total Gross Margins accumulated in December grew by 10.9% despite a volume in liters that was 21.6% less than 2015; moreover, we grew 65.5% in the unit margin EBITDA €/liter compared to the previous year.

        • The EBITDA/Sales margin grew by 52.4% compared to the previous corporate year, with a ratio of 6.6%

      • The EBITDA of the Southern Europe Business Unit, which has been the most problematic, has practically tripled compared to 2015, currently amounting to €15.8 million for the corporate year.

      • International markets also experienced significant growth in terms of EBITDA: 47.6% during the corporate year.

      • On the negative side of things we have the North American BU, whose EBITDA decreased by 28.4% mainly as a result of the loss of volume in Club channels, which are more oriented towards price, and in support of the brand itself.

      • The Northern Europe BU closed the corporate year with an EBITDA of €2.3 million compared to an EBITDA of practically zero for the previous corporate year.

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    Deoleo SA published this content on 28 February 2017 and is solely responsible for the information contained herein.
    Distributed by Public, unedited and unaltered, on 28 February 2017 22:30:09 UTC.

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