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illy 2015 Financials, New Global CEO

Trieste, Italy May 2, 2016 – illycaffè announces results for the year ended December 31, 2015, following the Board of Directors’ approval on April 29th of the Financial Statements and Consolidated Financial Statements for the period.

Consolidated revenues were up 12 percent, compared to 2014, to €437 million. The Gross Operating Margin (EBITDA) rose 7 percent to €66.4 million. Net debt was €115 million, with a debt/EBITDA ratio at 1.73 percent. At present, the Company employs 1,177 people worldwide.

Along with a satisfying domestic market growth, where revenues rose by 8 percent against 2014, the international growth trend experienced in the past few years has been confirmed.

Revenues outside Italy now account for 63 percent of total revenues: the EMEA region increased 8 percent, while the North American market – the most important after Italy – grew by 23 percent (partially due to foreign exchange effect). The U.S. market also developed strategic partnerships: the market leader Keurig for the new illy K-Cup pods, United Airlines to offer illy coffee on board and in locations worldwide, and most recently, Amazon.

China is the fastest growing market for illycaffè and it posted very positive results with revenues up 60 percent against the previous year (at current rates).

In addition to the positive results in 2015, the company achieved noteworthy business developments: The Company’s business agreement with Coca-Cola for the distribution of illy ready-to-drink beverages transformed from joint venture into a licensing model; the acquisition of the majority stake in Mitaca, specialized in office coffee service and automatic distribution; and a bond issue ensuring greater financial flexibility to support the Company’s growth plans including continuous expansion of retail operations in Italy and abroad with 29 new mono brand stores opened including both illy Caffè and illy Shop formats.

EXPO Milano 2015, where illycaffè has been Official Coffee Partner and curator of the Coffee Cluster, with 13 million visitors, was the greatest celebration of coffee in history. The event showcased illy’s coffee expertise and true to its innovative heritage, presented the Personal Blender concept; a robotic system enabling the user to create his/her own personalized blend starting from the best nine Arabica coffee types selected by illy.

Andrea Illy stated “Results for 2015 confirm the validity of the growth program launched last year, aiming to strengthen the company’s qualitative leadership by developing premium hospitality globally, portioned systems and mono brand retail in the most important cities of the world.”
In order to face the increasingly competitive marketplace, the illycaffè Shareholders’ Meeting approved a new Corporate Governance organization, encompassing confirmed current members and newly appointed Board of Directors in charge for the next three years.

The Corporate Governance organization included the following:

The entrepreneur Andrea Illy was reappointed as President, whilst Marina Salamon was appointed Vice-President.

For the first time in history, illycaffè appoints an external Chief Executive Officer, Massimiliano Pogliani. Mr. Pogliani’s professional and international experience includes executive roles with Saeco, Nespresso, Nestlé Super Premium and Vertu. *

Francesco Illy joins the Board in charge of Brand Equity, while Anna Belci Illy has been reappointed, being in charge of Corporate Reputation and Strategic Acquisitions. Riccardo Illy will represent in the Board the sole shareholder, Gruppo Illy SpA.

Among the independent directors, traditionally part of illycaffè’s Board, besides Marina Salamon, Pierluigi Celli has also been reconfirmed. The new members appointed are among the most acclaimed professionals in their specific areas of expertise: Alberto Baldan, Chief Executive Officer of la Rinascente; Roberto Eggs, Chief Operating Officer of Moncler; Douglas T. Hickey, General Commissioner of the USA Pavilion, Expo Milan 2015.

Professor and lawyer Mario Cannata is reappointed as Secretary and Legal Advisor. The members of the Board of Auditors and of the Supervisory Committee are Maurizio Dallocchio, President, Umberto Picciafuochi and Michela Del Piero.

Finally, Anna Illy is reappointed Honorary President.

Andrea Illy also stated, “This structure aims at exploiting the family’s manifold entrepreneurial skills, integrating them with extraordinary external talents. But, above all, it fully defines the model of illy as a family-owned business with a strong managerial approach. I have long believed that growth is mandatory and that managerialization is the only possible way forward for Italian family businesses that has reached a certain size and complexity level.”

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