2015 CONSOLIDATED FINANCIAL RESULTS

Fedrigoni Group continues to expand in 2015 Sales of Euro 977 million: +12% EBITDA +5.2% and net profit +8% 2016 sales projected as nearly Euro 1.1 billion: +12% EBITDA expected to increase by 21% and net profit by 22% ***

Smooth integration of companies acquired in 2015 in the Americas with a total investment of more than Euro 131 million Additional investments of Euro 32.5 million underway (more than half the Group's profits reinvested) ***

Recent inauguration of wine label plant and distribution center in California ▪

Total revenues of Euro 977 million (Euro 873 million in 2014): +12%

▪

EBITDA of Euro 120.6 million (Euro 114.6 million in 2014): +5.2%

▪

Net profit of Euro 57.8 million (Euro 53.5 million in 2014): +8%

▪

Net debt of Euro 178.3 million from Euro 72.7 million at December 31, 2014 due to the acquisitions

Verona; April 22, 2016. Fedrigoni S.p.A. - a major international player in the production and sale of high valueadded paper, special supports such as plastic film and metalized supports, and security and self-adhesive products, discloses its key consolidated financial results of 2015. «In 2015 the Group successfully consolidated its leadership on international markets - which now account for 67% of its sales - through two important acquisitions in the Americas. The first one, in the U.S.A. (GPA), has allowed us to enter forcefully and directly into the American market of digital printing support items, which presents high growth potential. The second acquisition, in Brazil (Arjo Wiggins), has made the Group the top producer of special papers and banknote paper in all of South America», stated the Chairman, Alessandro Fedrigoni. «The 2015 results demonstrate our ability to compete in high value-added and high profitability sectors, in which the Fedrigoni Group's technological excellence and innovative capacity are rewarded thanks in particular to the internal research and development team», stated the C.E.O., Claudio Alfonsi, who continued: «On the basis of the important results already obtained in the first few months of 2016, we can project sales of nearly Euro 1.1 billion

for 2016, up by 12%, Ebitda of Euro 146 million, up by 21%, and a net profit of more than Euro 70 million, an increase of more than 22% over 2015».

Smooth integration of companies acquired in 2015 in the Americas with a total investment of more than Euro 131 million ▪

GPA - Gummed Papers of America (USA) - new self-adhesive label plant and distribution center for the winemaking industry just inaugurated in California On April 2, 2015 GPA Holding Company Inc. was acquired; the company is based in McCook, Illinois and operates in the distribution of special graphic papers and self-adhesive labels for digital printing purposes. 100% of the company was acquired for Euro 48.4 million. The acquisition of GPA enables the Fedrigoni Group to pursue its strategy of improving the sales mix by expanding its share of special papers in total sales, and represents an important driver for the development and distribution of self-adhesive products in the United States, particularly labels for packaging in the food and wine industry. *** In April 2016, the plant and distribution center near Los Angeles (California) was equipped with new machinery for the converting and sales of self-adhesive labels designated for the premium wine, spirits and beer industry in order to meet the rising demand from the North American market – particularly the California wine district - rapidly and efficiently with high-quality products. The work force was increased to expand the sales capacity and meet the rising market demand. The Group's cash flow management also benefits from a direct presence in the U.S.A., which enables to improve the natural hedging of euro/dollar currency risks.

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Fedrigoni Brasil Papeis Ltda: important investments made to improve the quality of printing paper On May 19, 2015 Arconvert Brasil Ltda (subsidiary of Fedrigoni S.p.A.) completed the acquisition of Brazilian company Arjo Wiggins Ltda (now called Fedrigoni Brasil Papeis Ltda). 100% of the company was acquired for Euro 83 million. The company manufactures and distributes special papers for graphic use and for packaging purposes, security papers, banknote paper and E-docs in South America. The company is the leading producer of special papers and the only producer of banknote paper in South America. With this acquisition, important synergies are possible with the Group's production of security items and with Arconvert Brasil Ltda. In fact, in the initial months of 2016, important investments were made to improve quality of printing paper and to considerably boost production capacity. The manufacturing excellence of the Brazilian plant enables the Group to offer the entire South American market (including Mexico) products featuring the best quality currently available on the market effectively and rapidly.

***

Key consolidated financial results of 2015 The consolidated sales revenues were Euro 977 million, an increase of Euro 104 million (11.9%) over the Euro 873 million of 2014 due to the higher sales volumes and the acquisitions of GPA – Gummed Papers of America (U.S.A.) and the Brazilian company now called Fedrigoni Brasil Papeis Ltda. Sales of the paper and security segment rose by 11.7%, from Euro 609.0 million in 2014 to Euro 680.5 million in 2015. Revenues from the converting segment grew by 12.3%, from Euro 264 million to Euro 296.5 million.

Revenues by geographical area

Period ended December 31,

In millions of euro

2015

2014

Italy

326.5

315.5

Rest of Europe

370.8

350.1

Rest of World

279.7

207.4

977.0

873.0

Total

EBITDA was Euro 120.6 million, up by 5.2% from the 2014 amount of Euro 114.6 million. Operating income (EBIT) was Euro 84.9 in million, consistent with the 2014 amount of Euro 86.4 million due to the investments made in the integration process of the acquired companies. The net profit was Euro 57.8 million, 8% higher than the Euro 53.5 million of 2014. The net financial debt as of December 31, 2015 was Euro 178.3 million, compared to Euro 72.7 million as of December 31, 2014 and Euro 86.8 million as of September 30, 2014. The net debt-to-EBITDA ratio of December 31, 2015 is 1.48, compared to 0.6 for 2014.

Business outlook The market dynamics and positive trend of the supply of the raw materials used in the production process are reasons to expect favorable market conditions in 2016. The Group is carrying out activities to fully integrate the companies acquired in 2015 in Brazil and in the United States and develop additional important synergies. The product range continues to be renewed and expanded, and the manufacturing technology continues to be upgraded. On the whole, positive results are expected for the Group in 2016 in terms of sales, revenues, financial position and performance. ***

The Fedrigoni Group is a leading international player in the production and sale of various types of paper and in particular high value-added paper, special supports (such as plastic film, metalized supports, etc.), security products and self-adhesive products ("converting" segment) and is the leader in Italy and Europe in terms of total turnover in the production and distribution of special graphic papers 1. Moreover, the Group is the sole Italian producer of paper for banknotes accredited by the European Central Bank for producing the watermarked paper of the Euro banknotes and produces security items and security paper for central banks and printing institutes. The Fedrigoni Group stands out for its position in top value-added market niches thanks to its superior, consistent product quality, the extent and customization of its product range and the level of its customer service. Its history (125 years), its strong identity and the high awareness of its brands, combined with the excellence and innovation of its product range, efficiency and effectiveness of its distribution network and flexible, highly synergic manufacturing and business processes, give Fedrigoni a role of great importance in the domestic and international scenario. The Group’s extensive, efficient sales and distribution network constitutes another competitive advantage. Its 8 sales branches in Italy with companies in 6 European countries (not counting Italy), the U.S.A. and China (Shanghai and Hong Kong) enable it to maintain direct contact with its clients starting from the product development stage and to manage its target markets directly, thereby ensuring efficient controls and a focus on profitability. The Group owns the Fedrigoni and Fabriano brands, among others. Fabriano paper, with 750 years of history to its name, is part of Italy’s cultural heritage and is chosen each year by millions of students and artists in Italy and throughout the world. The Fedrigoni Group produces and markets fine stationery products, sold in 11 owned monobrand boutiques (Fabriano Boutiques). With more than 2,700 employees, 13 facilities - 9 in Italy, 2 in Spain and 2 in Brazil - 14 continuous paper-making production plants, 7 coating plants and over 13,000 product references in its catalog, the Group 2 sells its products in more than 110 countries throughout the world. In 2015 the Group's turnover, two thirds of which was realized in markets outside Italy, was Euro 977 million (up 11.9% year on year or "YoY"), EBITDA was Euro 120.6 million (up 12.3% YoY), and net profit was Euro 57.8 million (up 8% YoY).

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Press contacts Weber Shandwick | Advisory Giorgio Catalano Tel: +39 02 0064111
 Mobile: +39 334 6969275 [email protected] 


Valentina Spaziani Tel: +39 02 0064111 [email protected]

CONSOLIDATED INCOME STATEMENT

(in thousands of euros)

Year ended December 31, 2015

2014

Sales revenues

976,981

873,016

Other operating income

16,873

14,748

Cost of materials

1

Based on the financial statements of companies operating in the same industry

2

Including the acquisitions of GPA and Arjo Wiggins

(528,006)

(435,102)

Cost of services

(199,005)

(189,452)

Cost of personnel

(136,504)

(125,449)

Other costs

(14,906)

(17,274)

Depreciation, amortization and impairment losses

(36,814)

(31,727)

5,697

(2,933)

Change in inventories of work in progress, semi-finished goods and finished products Cost of capitalized in-house work

535

564

Operating income

84,851

86,391

Financial income

16,939

7,477

Finance costs

(19,418)

(11,912)

Net financial income/(costs)

(2,479)

(4,435)

Share of profits of associates

Profit before tax

Income taxes

Net profit

426

82,798

(25,021)

28

81,984

(28,451)

57,777

53,533

57,777

53,533

Net profit attributable to: -

Owners of the parent

-

Non-controlling interests

-

Earnings per share (in Euros): -

Basic and diluted

0.72

0.67

(2,933)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euros)

As of December 31,

As of December 31,

2015

2014

Non-current assets Property, plant and equipment

300,868

276,913

Intangible assets

64,663

3,551

Investment property

1,010

1,058

Equity-accounted investments in associates

2,136

1,710

Tax credits

3,807

3,964

Deferred tax assets

18,139

19,947

Financial assets Other assets Total non-current assets

3,880

548 2,158

394,503

309,849

Inventories

186,490

161,274

Trade receivables

253,355

237,302

Current assets

Tax credits

2,913

743

Financial assets

5,585

3,441

Other assets

20,457

8,913

Cash and cash equivalents

30,707

13,383

Derivatives

792

981

Total current assets

500,299

426,037

Total assets

894,802

735,886

Share capital

40,000

40,000

Reserves and retained earnings

319,728

304,911

Total equity

359,728

344,911

Due to banks and other lenders

110,208

17,816

Employee benefits

18,853

21,272

Provisions for risks and charges

12,074

14,418

Deferred tax liabilities

23,799

19,043

Non-current liabilities

Other liabilities

1,341

1,928

166,275

74,477

Due to banks and other lenders

105,191

72,572

Trade payables

222,972

198,090

991

13,268

39,629

32,466

Total non-current liabilities Current liabilities

Current tax liabilities Other liabilities Derivatives

16

102

Total current liabilities

368,799

316,498

Total liabilities

535,074

390,975

Total equity and liabilities

894,802

735,886