NEWS RELEASE GTECH ANNOUNCES SOLID 2013 SECOND-QUARTER RESULTS UNDER NEW REPORTING STRUCTURE

Transcription

1 NEWS RELEASE GTECH ANNOUNCES SOLID 2013 SECOND-QUARTER RESULTS UNDER NEW REPORTING STRUCTURE Consolidated Financial and Business Highlights Growth in Revenues, EBITDA, and Operating Income Continued Growth and Expansion in Lottery Operator Business Full-Year Guidance Reconfirmed Fabio Cairoli joins Renato Ascoli as General Manager of GTECH S.p.A. GTECH 2013 Second-Quarter and First-Half Results Comparison Consolidated Income Statement ( /M) 2Q Q 2012 % chg First-Half 2013 First-Half 2012 % chg Revenues , , EBITDA Operating Income Net Income Attributable to Owners Diluted Earnings Per Share EBITDA is principally comprised of operating income plus depreciation, amortization, and impairment. EBITDA is considered an alternative performance measure that is not a defined measure under International Financial Reporting Standards ("IFRS") and may not take into account the recognition, measurement and presentation requirements associated with IFRS. We believe that EBITDA assists in explaining trends in our operating performance, provides useful information about our ability to incur and service indebtedness and is a commonly used measure of performance by securities analysts and investors in the gaming industry. EBITDA should not be considered as an alternative to operating income as an indicator of our performance or to cash flows as a measure of our liquidity. As we define it, EBITDA may not be comparable to other similarly titled measures used by other companies. ROME (ITALY) PROVIDENCE, RHODE ISLAND (US), July 30, 2013 GTECH S.p.A. s Board of Directors, chaired by Mr. Lorenzo Pellicioli, today reviewed both the second-quarter and sixmonth consolidated results, and approved the financial statements for the first six months of 2013 which ended Our achievements this quarter are a testament to the fundamentals of our business and the strengths of our three regions, said Marco Sala, CEO of GTECH S.p.A. Strategically, our reorganization efforts are on track and will create a more efficient Company better aligned to drive continued growth. We are pleased with the New Jersey selection that solidifies our leadership in the lottery private manager space. We had another strong EBITDA performance in the quarter, consolidating the gains made since the beginning of the year. For the second half, we expect a more consistent trend, leading us to confirm our full-year EBITDA guidance of 1.05 billion billion," said Alberto Fornaro, CFO of GTECH S.p.A. "Conversely, we expect most of our debt reduction to take place in the second half, and reaffirm our Net Financial Position guidance of 2.47 billion billion at 2013 year end." 1/22

2 Following the reorganization announcement in January, GTECH is now operating under new segment reporting which became effective in the first half of 2013, with three new segments Americas, International, and Italy supported by a Products & Services organization. Second-Quarter Consolidated Results Consolidated Revenues were up approximately 3% to 762 million, compared to 743 million in the second quarter of 2012, driven by higher revenues in the Americas region from the sale of VLTs and systems in the Canadian market. Americas Lottery same store revenues were up 10% versus last year, driven by the $590 million record Powerball jackpot. International Lottery same store revenues were up 3.5% driven by good performance in the Czech Republic. Revenues in Italy were 421 million compared to 450 million in the second quarter of 2012, primarily impacted by a higher taxation on VLTs. EBITDA increased more than 5% and Operating Income grew 6% to 273 million and 161 million, respectively, mainly due to higher contributions from the Americas segment. Net Income attributable to the owners grew to 67 million from 64 million. Diluted Earnings-Per-Share (EPS) was 0.39, up from 0.37 in the second quarter of last year. Capital Expenditures in the quarter were 161 million. Of that amount, 92 million was used for the up-front payment under the 15-year services agreement with the New Jersey Lottery, partially funded by a 54 million equity contribution from other Northstar New Jersey joint venture members. Net of such equity contribution, Capital Expenditures totaled 107 million. At 2013, Consolidated Shareholders Equity totaled 2.68 billion. GTECH had a Net Financial Position (NFP) of 2.67 billion, compared to 2.55 billion as of December 31, During the second quarter, 126 million in dividends were paid, or 0.73 per share. Second-Quarter Segment Comparison Americas Revenues in the Americas segment grew 27% to 262 million from 206 million last year, mainly driven by a 42 million increase in product sales to 63 million, as well as growth in same store revenues. At constant currency, revenues were up 31%. EBITDA grew by 20 million to 70 million. During the quarter, cross-selling of Powerball and Mega Millions was launched in California and Florida, respectively, both of which are expected to improve same store revenues in the second half of 2013 and beyond. Instant-ticket sales in the quarter improved significantly with growth in several states including Texas, North Carolina, California, and Illinois. During the quarter, GTECH secured a 15-year services agreement in New Jersey, with full services expected to commence ahead of schedule in October On July 1, GTECH Indiana began managing the day-to-day operations of the Hoosier Lottery. All transition and ramp-up milestones in Indiana have been met. The GTECH/Boldt consortium also commenced full services as the lottery operator in Costa Rica in June, and initial online sales are encouraging. Moreover, GTECH received contract extensions from lottery customers in Virginia, Arizona, and Wisconsin. 2/22

3 In light of the completion of the State of Illinois financial statements for fiscal year 2012, and based on preliminary information for its fiscal year ended 2013, as of 2013, Northstar estimates its Net Shortfall payment obligations to the State is approximately 32 million. The economic impact of such potential liabilities will be absorbed over the remaining contract term. At a minimum, Northstar expects to be in a Net Incentive Compensation position for the State s fiscal year ended June 2015 through the end of the contract. International Revenues from the International segment were 79 million, versus 87 million last year when GTECH recorded product sales in Turkey and Switzerland, the timing of which is cyclical. Same store revenues in the quarter were up 3.5% driven by lottery sales in the Czech Republic and instant-ticket performance in the United Kingdom. Italy Total revenues from Italy were approximately 421 million, compared to 450 million in the second quarter of The reduction in revenues from gaming machines was mitigated by lower sports betting payouts and higher wagers for Lotto late numbers and 10eLotto. Machine gaming revenues were 144 million versus 168 million last year, mainly as a result of the VLT tax increase to 5% from 4% last year. Lotto wagers for the quarter were stable at 1.53 billion, compared to 1.55 billion last year. Lotto late number wagers grew 25% to 136 million, compared to 109 million last year. Instant-ticket wagers were in line with expectations at 2.37 billion, compared to 2.43 billion last year. Revenues from sports betting were up approximately 2% to 32 million due to lower payouts. EBITDA also benefited from the ongoing cost-management program, and the impact of certain one-time items including the reversal of a provision recorded in 2011 for litigation resolved in the Company s favor. First-Half Consolidated Results For the first half of 2013, Revenues were up 2.4% to 1.56 billion, compared to 1.52 billion in the first half of Product sales were up 82% to 160 million driven by the Americas segment. Americas Lottery same store revenues grew 1.1% to 255 million. International Lottery same store revenues were up 3.4% to 54 million during the first half of the year, which benefited from Euro Millions jackpot activity and growth of instant-ticket sales. Lotto wagers in Italy were up slightly to 3.14 billion, compared to 3.13 billion last year. Lotto late number wagers grew 31% to 256 million, compared to 196 million last year. Instantticket wagers were 4.92 billion, compared to 5.05 billion last year. EBITDA was up 6% to 573 million, and Operating Income increased more than 9% to 353 million. Income before income tax expense was 269 million versus 244 million in the first half of last year. Net income attributable to the owners was 142 million, compared to 121 million in the same period last year. 3/22

4 Diluted Earnings-Per-Share (EPS) was 0.82, up from 0.70 in the first half of last year. Cash from Operations was 354 million in the first half, compared to 379 million in the first half of 2012, primarily due to changes in working capital. Capital Expenditures were 214 million, or 160 million net of the equity contribution in New Jersey, versus 102 million in the first half of Other Information GTECH s Board of Directors implemented the Stock Option Plan and the Stock Allocation Plan, both approved by the Ordinary Shareholders Meeting on May 8, The Board approved the terms and conditions of the Plans, assigned Options and Shares, and resolved in accordance with the authorization granted by the Extraordinary Shareholders Meeting on April 28, 2011 to increase the stock capital up to a nominal amount of 1,622,481 serving the Stock Option Plan, with an exercise price of the Options determined at The documentation required by the relevant provisions in connection with the above resolutions may be found on the Company s website at (section: Governance Documents and Reports Ongoing Stock-Based Compensation Plans). GTECH s Board of Directors also appointed Fabio Cairoli as General Manager of the Company, while Renato Ascoli retained the same title. Their respective responsibilities were announced on January 24, 2013 in the framework of the Company s reorganization plan. Related press releases: January 24, 2013 and July 15, 2013 Declaration The manager responsible for preparing GTECH s financial reports, Alberto Fornaro, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books, and accounting records. GTECH S.p.A. is a leading commercial operator and provider of technology in the regulated worldwide gaming markets, delivering best-in-class products and services, with a commitment to the highest levels of integrity, responsibility, and shareholder value creation. The Company is listed on the Milan Stock Exchange under the trading symbol GTK and is majority owned by De Agostini S.p.A. In 2012, GTECH had 3.1 billion in revenues and 8,600 employees in approximately 60 countries. For more information, please visit For further information: Robert K. Vincent Simone Cantagallo GTECH S.p.A. GTECH S.p.A. Corporate Communications Media Communications T. (+1) T. (+39) This news release and those archived are available at 4/22

5 Financial Statements for the second quarter and first six months of 2013 follow: 5/22

6 INTERIM CONSOLIDATED INCOME STATEMENTS (thousands of euros) Service revenue Unaudited 679, ,392 Product sales 82,478 45,340 Total revenue 762, ,732 Raw materials, services and other costs 376, ,144 Personnel 143, ,882 Depreciation 61,384 61,503 Amortization 46,691 44,514 Impairment recovery (2,024) - Capitalization of internal construction costs - labor and overhead (25,994) (25,320) Total costs 600, ,723 Operating income 161, ,009 Interest income Equity income (loss) (243) 140 Other income 319 2,354 Other expense (1,942) (3,998) Foreign exchange gain, net 1,952 7,466 Interest expense (40,502) (39,311) (39,687) (32,648) Income before income tax expense 121, ,361 Income tax expense 49,686 50,913 Net income 72,094 69,448 Attributable to: Owners of the parent 67,262 63,838 Non-controlling interests 4,832 5,610 72,094 69,448 Earnings per share/adrs Basic - net income attributable to owners of the parent Diluted - net income attributable to owners of the parent /22

7 INTERIM CONSOLIDATED INCOME STATEMENTS (thousands of euros) Unaudited Service revenue 1,399,901 1,435,191 Product sales 159,642 87,803 Total revenue 1,559,543 1,522,994 Raw materials, services and other costs 763, ,163 Personnel 277, ,638 Depreciation 122, ,306 Amortization 93,339 91,710 Impairment recovery (2,025) - Capitalization of internal construction costs - labor and overhead (48,611) (44,375) Total costs 1,206,527 1,200,442 Operating income 353, ,552 Interest income 1,439 1,460 Equity income (loss) (129) 139 Other income 660 2,410 Other expense (3,883) (5,911) Foreign exchange gain (loss), net (1,479) 2,485 Interest expense (80,624) (78,923) (84,016) (78,340) Income before income tax expense 269, ,212 Income tax expense 109, ,302 Net income 159, ,910 Attributable to: Owners of the parent 142, ,463 Non-controlling interests 17,245 19, , ,910 Earnings per share/adrs Basic - net income attributable to owners of the parent Diluted - net income attributable to owners of the parent /22

8 INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Restated (a) December 31, (thousands of euros) Unaudited Audited ASSETS Non-current assets Systems, equipment and other assets related to contracts, net 939, ,255 Property, plant and equipment, net 82,550 84,749 Goodwill 3,217,206 3,188,753 Intangible assets, net 1,352,659 1,333,948 Investments in associates and joint ventures 9,322 10,162 Other non-current assets 59,477 27,354 Non-current financial assets 29,221 23,395 Deferred income taxes 10,659 11,030 Total non-current assets 5,700,183 5,625,646 Current assets Inventories 163, ,304 Trade and other receivables, net 878, ,894 Other current assets 168, ,177 Current financial assets 8,836 8,915 Income taxes receivable 21,771 19,509 Cash and cash equivalents 345, ,762 Total current assets 1,586,207 1,639,561 Non-current assets classified as held for sale - 12,063 TOTAL ASSETS 7,286,390 7,277,270 EQUITY AND LIABILITIES Equity attributable to owners of the parent Issued capital 173, ,455 Share premium 1,709,609 1,703,923 Retained earnings 251, ,858 Other reserves 172, ,565 2,306,905 2,267,801 Non-controlling interests 375, ,464 Total equity 2,682,354 2,642,265 Non-current liabilities Long-term debt, less current portion 2,779,618 2,778,764 Deferred income taxes 170, ,755 Long-term provisions 18,088 45,204 Other non-current liabilities 62,847 51,059 Non-current financial liabilities 65,517 42,407 Total non-current liabilities 3,096,211 3,056,189 Current liabilities Accounts payable 871,410 1,000,703 Short-term borrowings Other current liabilities 363, ,668 Current financial liabilities 18,128 10,620 Current portion of long-term debt 161, ,276 Short-term provisions 1,944 1,900 Income taxes payable 90,733 28,108 Total current liabilities 1,507,825 1,578,816 TOTAL EQUITY AND LIABILITIES 7,286,390 7,277,270 (a) As adjusted to reflect the early adoption of IFRS 11 Joint Arrangements 8/22

9 INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (thousands of euros) Unaudited Cash flows from operating activities Income before income tax expense 269, ,212 Adjustments for: Depreciation 122, ,306 Intangibles amortization 93,384 91,756 Interest expense 80,624 78,923 Share-based payment expense 4,932 6,375 Non-cash foreign exchange (gain) loss, net 125 (3,060) Interest income (1,439) (1,460) Impairment recovery (2,025) - Provisions (6,701) 4,661 Other non-cash items 4,658 3,710 Cash foreign exchange loss, net 1, Income tax paid (17,167) (78,271) Cash flows before changes in operating assets and liabilities 549, ,727 s in operating assets and liabilities: Inventories 3,768 (36,349) Trade and other receivables (58,502) (100,509) Other current assets 13,910 (19,450) Accounts payable (132,109) 70,123 Deferred revenue 21,196 15,187 Employee compensation (24,209) (21,156) Taxes other than income taxes (12,733) (9,588) Advance payments from customers (13,751) 11,003 Other assets and liabilities 7,209 1,773 Net cash flows from operating activities 354, ,761 Cash flows from investing activities Purchases of intangible assets (108,762) (4,424) Purchases of systems, equipment and other assets related to contracts (91,922) (91,481) Acquisition (6,713) - Purchases of property, plant and equipment (5,100) (4,916) Interest received 1,759 1,413 Cash proceeds related to impairment recovery 2,025 4,455 Other (6,825) 3,999 Net cash flows used in investing activities (215,538) (90,954) Cash flows from financing activities Dividends paid (125,920) (122,220) Interest paid (97,588) (119,762) Return of capital - non-controlling interest (37,354) (34,562) Dividends paid - non-controlling interest (33,601) (30,076) Net repayments of short-term borrowings (785) (1,626) Principal payments on long-term debt (213) (42,221) Capital increase - Northstar New Jersey Lottery Group, LLC 54,439 - Cash paid on interest rate swaps - (15,901) Proceeds from issuance of long-term debt Other (3,864) (2,328) Net cash flows used in financing activities (244,886) (368,064) Net decrease in cash and cash equivalents (106,071) (80,257) Effect of exchange rate changes on cash (3,727) 332 Cash and cash equivalents at the beginning of the period 455, ,675 Cash and cash equivalents at the end of the period 345, ,750 9/22

10 KEY FINANCIAL INDICATOR COMPARISONS % Revenue 762, ,732 19, EBITDA 273, ,654 13, Operating income 161, ,009 8, Net income attributable to owners of the parent 67,262 63,838 3, Diluted earnings per share EBITDA Operating income 161, ,009 8, Depreciation 61,384 61,503 (119) (0.2) Amortization 46,691 44,514 2, Impairment recovery (2,024) - (2,024) - Other 5, ,943 > , ,654 13, /22

11 KEY FINANCIAL INDICATOR COMPARISONS % Revenue 1,559,543 1,522,994 36, EBITDA 573, ,015 33, Operating income 353, ,552 30, Net income attributable to owners of the parent 142, ,463 20, Diluted earnings per share EBITDA Operating income 353, ,552 30, Depreciation 122, ,306 2, Amortization 93,339 91,710 1, Impairment recovery (2,025) - (2,025) - Other 5,933 5, , ,015 33, December 31, (a) % Net financial position 2,670,302 2,548, , (a) As adjusted to reflect the early adoption of IFRS 11 Joint Arrangements 11/22

12 CONSOLIDATED REVENUE BREAKDOWN (thousands of euros) % Operating Segments Americas 261, ,892 55, International 79,281 86,679 (7,398) (8.5) Italy 420, ,089 (29,232) (6.5) 761, ,660 19, Purchase accounting , ,732 19, (thousands of euros) % Operating Segments Americas 505, ,105 89, International 164, ,381 (5,662) (3.3) Italy 889, ,365 (46,949) (5.0) 1,559,270 1,522,851 36, Purchase accounting ,559,543 1,522,994 36, /22

13 AMERICAS SEGMENT (thousands of euros) % Lottery 163, ,315 7, Machine Gaming 72,766 26,123 46, All Other 25,195 23,454 1, Total revenue 261, ,892 55, Service revenue 198, ,402 13, Product sales 62,976 20,490 42,486 >200.0 Total revenue 261, ,892 55, Lottery Same-Store Revenues 132, ,801 12, Wins 2,166-2,166 - Gaming & Other 51,674 48,123 3, Pass Through Revenues 17,836 16,478 1, Foreign Exchange Impact (5,712) - (5,712) - Total Service Revenue 198, ,402 13, (thousands of euros) % Lottery 315, ,485 (511) (0.2) Machine Gaming 139,954 54,081 85, All Other 49,207 45,539 3, Total revenue 505, ,105 89, Service revenue 388, ,760 10, Product sales 117,073 38,345 78,728 >200.0 Total revenue 505, ,105 89, Lottery Same-Store Revenues 255, ,650 2, Wins 2,166-2,166 - Gaming & Other 98,530 92,503 6, Pass Through Revenues 35,763 32,607 3, Foreign Exchange Impact (3,857) - (3,857) - Total Service Revenue 388, ,760 10, /22

14 INTERNATIONAL SEGMENT (thousands of euros) % Lottery 47,653 54,128 (6,475) (12.0) Machine Gaming 20,234 17,708 2, All Other 11,394 14,843 (3,449) (23.2) Total revenue 79,281 86,679 (7,398) (8.5) Service revenue 60,671 64,444 (3,773) (5.9) Product sales 18,610 22,235 (3,625) (16.3) Total revenue 79,281 86,679 (7,398) (8.5) Lottery Same Store Revenue 27,366 26, Gaming & Other 34,290 37,996 (3,706) (9.8) Foreign Exchange Impact (985) - (985) - Total Service Revenue 60,671 64,444 (3,773) (5.9) (thousands of euros) % Lottery 94, ,616 (10,044) (9.6) Machine Gaming 46,666 35,600 11, All Other 23,481 30,165 (6,684) (22.2) Total revenue 164, ,381 (5,662) (3.3) Service revenue 123, ,740 (1,899) (1.5) Product sales 40,878 44,641 (3,763) (8.4) Total revenue 164, ,381 (5,662) (3.3) Lottery Same Store Revenue 53,998 52,236 1, Gaming & Other 70,746 73,504 (2,758) (3.8) Foreign Exchange Impact (903) - (903) - Total Service Revenue 123, ,740 (1,899) (1.5) 14/22

15 ITALY SEGMENT (thousands of euros) % Lotto 99, ,268 (882) (0.9) Instant tickets 92,963 95,480 (2,517) (2.6) Other Lottery 193, ,576 (3,392) (1.7) Machine Gaming 143, ,640 (23,746) (14.2) Sports Betting 31,734 31, Commercial Services 33,284 33,675 (391) (1.2) Interactive Skill Games 18,761 20,921 (2,160) (10.3) Total revenue 420, ,089 (29,232) (6.5) (thousands of euros) % Lotto 203, , Instant tickets 192, ,117 (5,328) (2.7) Other 1,832 1, Lottery 398, ,441 (4,130) (1.0) Machine Gaming 296, ,418 (45,166) (13.2) Sports Betting 88,875 79,489 9, Commercial Services 66,052 66,287 (235) (0.4) Interactive Skill Games 39,926 46,730 (6,804) (14.6) Total revenue 889, ,365 (46,949) (5.0) 15/22

16 ITALY SEGMENT Wagers % Lotto (millions of euros) Core wagers 1, ,444.9 (47.5) (3.3) Wagers for late numbers , ,553.6 (20.5) (1.3) Instant Tickets Total sales (in millions) 2, ,433.2 ( 59.0) (2.4) Total tickets sold (in millions) (34.7) (6.5) Average price point Machine Gaming (millions of euros) VLT wagers 1, ,881.7 (267.3) (14.2) AWP wagers 1, , Total wagers 2, ,988.0 (250.4) (8.4) (Installed at the end of June) VLTs installed 10,577 10, AWP machines installed 70,716 63,668 7, Total machines installed 81,293 73,673 7, Sports Betting (millions of euros) Fixed odds sports betting and other wagers (31.4) (15.0) Interactive Skill Games (millions of euros) Skill game wagers (52.1) (9.3) 16/22

17 ITALY SEGMENT Wagers % Lotto (millions of euros) Core wagers 2, ,931.3 (49.2) (1.7) Wagers for late numbers , , Instant Tickets Total sales (in millions) 4, ,052.8 ( 132.4) (2.6) Total tickets sold (in millions) 1, ,104.4 (79.9) (7.2) Average price point Machine Gaming (millions of euros) VLT wagers 3, ,895.2 (501.9) (12.9) AWP wagers 2, , Total wagers 5, ,145.0 (484.7) (7.9) (Installed at the end of June) VLTs installed 10,577 10, AWP machines installed 70,716 63,668 7, Total machines installed 81,293 73,673 7, Sports Betting (millions of euros) Fixed odds sports betting and other wagers (69.2) (15.1) Interactive Skill Games (millions of euros) Skill game wagers 1, ,147.8 (138.0) (12.0) 17/22

18 NET FINANCIAL POSITION December 31, (thousands of euros) (a) Cash at bank 345, ,386 (109,797) Cash on hand (1) Cash and cash equivalents 345, ,762 (109,798) Current financial receivables 8,836 8,915 (79) Facilities 105, , Notes (due 2016) 23,082 2,926 20,156 Capital Securities 15,469 46,406 (30,937) 2010 Notes (due 2018) 11,112 24,549 (13,437) 2012 Notes (due 2020) 5,658 1,223 4,435 Other 18,785 12,066 6,719 Current financial debt 179, ,437 (12,470) Net current financial cash (174,833) (272,240) 97, Notes (due 2016) 756, ,616 (2,800) Capital Securities 742, ,148 1, Notes (due 2018) 495, , Notes (due 2020) 492, , Facilities 290, ,922 1,692 Other 67,175 44,336 22,839 Non current financial debt 2,845,135 2,821,171 23,964 Net financial position 2,670,302 2,548, ,371 (a) As adjusted to reflect the early adoption of IFRS 11 Joint Arrangements 18/22

19 DEBT December 31, (thousands of euros) Long-term debt, less current portion 2009 Notes (due 2016) 756, ,616 Capital Securities 742, , Notes (due 2018) 495, , Notes (due 2020) 492, ,842 Facilities 290, ,922 Other 1,658 1,929 2,779,618 2,778,764 Short-term borrowings Short-term borrowings Current portion of long-term debt Facilities 105, , Notes (due 2016) 23,082 2,926 Capital Securities 15,469 46, Notes (due 2018) 11,112 24, Notes (due 2020) 5,658 1,223 Other , ,276 Total debt 2,941,457 2,960,581 19/22

20 INTEREST EXPENSE (thousands of euros) Capital Securities (16,133) (16,133) 2009 Notes (due 2016) (9,327) (9,662) 2010 Notes (due 2018) (6,922) (6,912) 2012 Notes (due 2020) (4,626) - Facilities (2,948) (4,647) Other (546) (1,957) (40,502) (39,311) (thousands of euros) Capital Securities (32,266) (32,054) 2009 Notes (due 2016) (18,714) (19,591) 2010 Notes (due 2018) (13,842) (13,821) 2012 Notes (due 2020) (9,250) - Facilities (5,467) (9,444) Other (1,085) (4,013) (80,624) (78,923) 20/22

21 OPERATING SEGMENT INFORMATION Third-party revenue (thousands of euros) Operating Segments Americas 261, , , ,105 International 79,281 86, , ,381 Italy 420, , , , , ,660 1,559,270 1,522,851 Purchase accounting , ,732 1,559,543 1,522,994 Operating income (thousands of euros) Operating Segments Americas 36,173 17,238 74,560 45,577 International 11,604 15,667 24,687 27,081 Italy 139, , , , , , , ,075 Corporate support (11,517) (9,062) (19,487) (19,032) Purchase accounting (14,583) (15,418) (28,870) (30,491) 161, , , ,552 21/22

22 OPERATING SEGMENT INFORMATION Depreciation (thousands of euros) Operating Segments Americas 33,975 32,530 68,542 63,448 International 4,561 4,847 8,974 9,268 Italy 17,136 17,865 33,654 35,343 55,672 55, , ,059 Corporate support 3,708 3,879 7,690 7,379 Purchase accounting 2,004 2,382 3,969 4,868 61,384 61, , ,306 Amortization (thousands of euros) Operating Segments Americas International Italy 33,862 30,941 67,942 64,973 33,862 31,142 67,944 65,366 Corporate support Purchase accounting 12,724 13,114 25,185 25,777 46,691 44,514 93,339 91,710 Impairment recovery (thousands of euros) Operating Segments Americas International (2,024) - (2,025) - Italy (2,024) - (2,025) - Corporate support Purchase accounting (2,024) - (2,025) - 22/22