CENTRALE DEL LATTE DI TORINO & C. S.P.A.: The Board of Directors approved the consolidated results at 30 June 2016.

• Consolidated net revenue of € 48.7 million (in line with € 48.7 million at 30/06/2015)
• EBITDA of € 1.5 million (compared to € 3 million at 30/06/2015)
• EBIT of € -275 thousand (vs. € 1.3 million at 30/06/2015)
• Net result after taxes of € -555 thousand (vs. € 330 thousand at 30/06/2015).

Total revenue of € 48.7 million, in line with the € 48.7 million at the same period of the previous year, EBITDA of € 1.5 million, compared to € 3 million recorded at 30/6/2015, negative EBIT of € 275 thousand compared to the positive figure of € 1.3 million at 30/06/2015, net loss after taxes of € 555 thousand, compared to the net profit of € 330 thousand at 30/06/2015.

This is the summary of the main economic results referred to 1H 2016, approved by the Board of Directors of Centrale del Latte di Torino & C. S.p.A. – a company listed on the STAR division of Borsa Italiana, dealing in the production and sale of fresh milk, milk products and ultra-fresh products – held today in Turin and chaired by Luigi Luzzati.

The economic results for 1H 2016 were affected by the increase in costs for the activities in support of Group brands aimed at b
oosting market shares, and costs relating to the extension of sales premises. They were also influenced by expenses for the m
aintenance of Group facilities and costs connected with the merger operation with Centrale del Latte di Firenze, Pistoia e Livorno S.p.A.

Sales in 1H 2016, net of sales of bulk milk and cream (affected by the downward movements in the so-called spot market where bulk milk and cream are traded) were up 0.8% compared to 1H 2015, confirming that the quality of the products and the Group’s activities in support of the brands have allowed the Group to deal more effectively with the market, which remains characterised by deflation and lack of reactivity to monetary and fiscal stimuli.

The Group’s net financial position at 30 June 2016 was negative to the tune of € 21.7 million, compared to the negative figure of € -17.1 million at 30 June 2 015 and € -20.6 million of 31 December 2015.

After 30 June 2016, the Group continued to maintain a positive presence in the respective areas, further strengthening its market shares. The Group continued to introduce new products, both in the milk segment and the drinks of plant origin segment, which continue to prove popular with consumers.

On 13 June 2016, the Extraordinary Shareholders’ Meeting approved the project for the merger of Centrale del Latte di Firenze, Pistoia e Livorno S.p.A. into Centrale del Latte di Torino & C. S.p.A., the change to article 1 of the Corporate By-Laws with the change of the company name to Centrale del Latte d’Italia S.p.A; article 5, with the increase of the Share Capital from € 20,600,000,00 to € 28,840,041.20 following the issue of 4,000,020 new shares, and the attribution of loyalty shares to the holders of ordinary shares held for a consecutive period of at least 24 months, starting from the date of registration on the list to be drafted for the purpose; article 11, with the increase of the number of Directors from 11 to 14. The Ordinary Shareholders’ Meeting appointed the 4 new Directors and authorised the issue of treasury shares. These changes to the by -laws and the appointment of the four new Directors will become effective from the date on which the merger becomes effective vis-à-vis third parties.

As regards forecasts, in a deflationary market with poor reactivity to monetary and fiscal stimuli, results in terms of turnover are expected to be in line with last year, also taking account of the worsening economic and political situation at international level.

Finally, the Board of Directors approved the Internal Dealing Code, incorporating the changes set out in the provisions of EU regulation no. 596/2014, regarding insider lists, internal dealing notifications on transactions carried out by significant figures and the so-called black period during which said figures may not carry out transactions on the share.

Pursuant to paragraph 2 of article 154-bis of the Consolidated Finance Law, the Executive in charge of drafting corporate accounts, Mr. Vittorio Vaudagnotti, stated that the accounting information herein contained tallies with the company’s documentary evidence, ledgers and accounts