#1INVESTOR PRESENTATION LONDON, OCTOBER 2015 IN HONOREM PRINCIPIS APOST BYRGHESIVE ROMANNANTMAXANME PONT MI DAC www.gruppodar.eu FRC 32-2015 ARCO Veritas ARCOGEL Veritas Proudly Bidvest IDEALCAR Gruppo DAC eccellenza per la ristorazione DAC: AN ITALIAN COMPANY FOR ITALIAN FOOD#2ABOUT US -history DAC S.p.A.. was founded in 1970 by Mr Giuseppe Scuola and since then it has become the second larger operator in catering and food distribution on the Italian domestic market. Proudly Bidvest DAC In July 2014, more than 40 years after its creation, Dac has entered the Bidvest Group.#3The very heart of the company is DAC's headquarter in Brescia, a completely enclosed structure with a surface area of more than 25.000 m2. ABOUT US - logistics The branches in Padua and in Rome are the major arteries of our business and allow the company to reach any area on the domestic territory. DAC DAC HEADQUARTER IN FLERO: 25.000 sqm covered area equipped for dry. fresh, frozen goods and wine. DAC BRANCH IN PADUA: 5.000 sqm covered area equipped for dry, fresh and frozen goods. DAC BRANCH IN ROME: 7.000 sqm covered area equipped for dry, fresh frozen goods and wines. DA Gruppe DAC eccellenza per la ristorazione www.gruppodac.eu#4All DAC's warehouses are equipped with a modern logistic plant and frozen storages in strict accordance with the Italian and European regulations. The quality is confirmed by the ISO 9002 Quality System Certificate. ABOUT US - our territory Thanks to its many platforms and its logistic's partners, distributed alongside the national territory. DAC can deliver its products over the entire peninsula, mantaining a widespread and constant coverage of the nation, islands included. BRESCIA UDINE PADOVA MILANO TORINO GENOVA FINALE L. ALTOPASCIO CESENA CENTRAL WAREHOUSE DIRECT PLATFORM - FILIALE 1 PADOVA - FILIALE 2 ROMA LOGISTIC PARTNERS PESCARA ROMA OLBIA ROME OPENED IN 2015! PONTECAGNANO BARI ABBASANTA PALERMO CATANIA SCALEA GIOIA TAURO#5ABOUT US - our numbers PAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAR DAC DAC DAC DAC DAC BAY DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC DAC AC DAC DAC DAC DAC DAG DAC DAC DAC DAC DAC DAG DAC DAC DAC DAC ASSORTMENT: - More than 16.000 items SALES FORCE: - 330 salesmen WORK FORCE: -403 employees TRUCKS: - 105 property trucks - 184 third party trucks DELIVERIES: - 36 hours delivery - 684.151 yearly deliveries (2014) GOODS DELIVERED FROM OUR WAREHOUSES/KG: - Brescia: 113.435.609 - Padova: 20.452.056 - Rome: 1.384.228 (since it was opened) NUMBER OF SERVED DESTINATIONS: - 18.631 DAG!#6ABOUT US - products With more than 16,000 items in a complete range of product categories (dried, fresh and ultra-fresh foods, frozen foods; wine and beverage; non-food products), we can meet all the requirements of the ho.re.ca and institutional catering sector, offering our services as a global supplier for food service. CHATEAUL CRANIAL THE#7ABOUT US - products Over the last few years we have increased our investments in quality, tradition and wellness. In response to the latest trends and discoveries in nutrition, we have enriched our assortment with organic foods, geographical specialties, ethnic cuisine and gluten-free foods. FRESH LOCAL PRODUCE 100% GLUTEN FREE 0000 0000 0000 00#8ABOUT US-private label The weight of private label products in DAC's assortment is on the rise. By pushing private label brand, the company can capitalise on product innovation and offer its clients value-added products, which command a premium price. ARCO ARCOGEL Arco is the DAC proprietary brand which draws on our lengthy experience in the catering sector to select a vast range of fundamental products for Italian cuisine with an excellent quality/price ratio. Arcogel is our brand specializing in frozen foods: meat, fish, fruit and vegetables produced for us by companies that lead the field for the quality they offer. ARCO Alimentari ARCO Alimentari La cucinai Laila in cucina! ARCOGEL SURGELATI ARCOGEL SURGELATI 2500 ten gulo par la natural 2500nin galo par la itatardam#9ABOUT US - veritas collection Veritas Collection: selection and excellence Veritas LLECTI N Veritas Veritas Veritas Veritas gourmet In vino semper. Breakfast Happy hour Veritas Veritas Veritas 10 ANNI HAPPY HOUR Veritas In 2006 DAC gave birth to the Veritas brand, with its various themes: Veritas in Vino Semper. Veritas Breakfast, Veritas Happy Hour and Veritas Gourmet. Its catalogues are collections of rare and precious products, specifically selected for the high and ultra-high-end restaurant. catering and hotel sectors.#10ABOUT US - client service and training Veritas Kitchen is a professional setting, that combines Italian design with classic style. Its ultramodern equipment is dedicated to our salesmen and clients, to train them on our products. This extremely refined space has been designed and built for cooking classes and tastings, and is made available to all the companies of the group. In fact, it can be used as the ideal setting for projects concerning Italian food with salesmen and/or customers.#11ABOUT US - technological development: key account The majority of DAC's key account clients is directly linked to our computerised systems and can send their orders in complete independence, with great benefit in terms of time and costs.#12ABOUT US technological development: smart sales app A new corporate e-commerce app dedicated to DAC's street clients is in preparation for release and will constitute a significant innovation. This new app will enable our customers to: - place their orders in a completely autonomous manner - receive DAC's advertising newsletter - control their financial statement www. SAMSUNG Gruppo DAC PROFILE ORDERS PRODUCTS PROMOTIONS 12:40#13- ABOUT US technological development: gps DAC's trucks are equipped with real time GPS locators, that communicate with our computerised systems and inform our Customer Service about the current state of any delivery. Via Colome Via Colorne Via Pontida a Conforama Veneto Via Padania Canella Abbigliamento Moto Via Nicolò Copernico Via Guglielmo Marconi MAGAZZINI ROSSI a DAC a Alessandro Volta 02:15PM Menu#14THE ITALIAN MARKET - fragmentation The foodservice market has, therefore, great potential, but is extremely fragmented and consists in a wide variety of commercial formulas. In this context, chains and groups totalled just 9,8% of commercial catering, well below all large developed countries. 60% Market share of chains and groups in commercial catering-country comparison (2014) + 50% 50% 40% 30% 20% 10% 42.6% 30.1% 28.3% 26.6% 9.8% 0% US UK France Germany Spain Italy#15DAC'S BUSINESS DIVERSIFICATION Through its pro-active approach and the expertise acquired during 40 years of activity, DAC has diversified its business in this way: Lunch STREET MARKET KEY ACCOUNT EXPORT PUBLIC 2013 2013 2013 2013 41,32% 46,04% 8,65% 3,99% 2015 2015 2015 2015 63,63% 26,33% 7.66% 2.38%#16SALES BREAKDOWN BY CATEGORY I Ambient Frozen Wine Non food Beverage Cold cuts Meat Dairy Meat (7.00%) Cold cuts (6.00%) Beverage (5.00%) Dairy (13.00%) Non food (5.00%) Wine (4.00%) Frozen (24.00%) Ambient (36.00%)#17ITALIAN ECONOMIC SCENARIO First quarter GDP growth in 2015: 0,3% vs the preceding quarter. Italian GDP: +0,1% compared to the first quarter of 2014. Italian GDP in 2015: +0,2% Final national consumptions: -0,1% Imports: + 1,4% Exports: stable. Final domestic demand: +0,2% Italian unemployment rate 12,40 -0,56% vs. previous quarter Italian consumer confidence 112,70 +13,49% vs. previous quarter Outlook: stable - moderated growth#18THE ITALIAN MARKET - OOH food consumption Analyzing the trend of Italian OOH food consumption, we can assume that Italian people are more willing to spend on eating out than on home cooking. In fact, OOH food consumption has decreased by only 3% in real terms from its peak in 2007, while AH consumption was slashed by 13%. This happens because: - OOH food consumption benefits from the resilience of foreign tourists flows: - Eating out is very important for Italian social dynamics, therefore people tend to preserve this habit even in time of crisis.#19ITALIAN MARKET - the food service operators Considering the food service operator market in Italy (worth 11 bn.) and its extreme fragmentation, we can see DAC's great potential for growth: 3 0 15 12 9 6 FIRST PLAYER 13,5% the market leader is a company listed on Italian stock exchange, that has a market share of 13,5% with a ttl turnover of Eur 1.4bn. DAC is the second player in Italy. DAC 2,5-3% EACH OTHER COMPETITOR VERY LOW PERCENTAGE Italian scene is characterised by a multitude of sector-specific suppliers, above all "mama & papa" companies, that will be destined to leave the market in the near future.#20DAC'S GROWTH DAC's growth in last 10 years +5,6 % +9,2% +13,8% +7,0% +0,3 % +12,7% +12,9% +18,4% +12,0 % 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014#21DAC'S STRATEGY - domestic market Aganinst this background DAC makes its way thanks to the dynamic management's strategy: - Exploit our broad assortment in order to multiply the products sold to well-known clients ("one stop shop"). - Put in place incentives policies, in order to intercept the salesmen who leave our competitors. - Work on strategic and successfull acquisitions on the national territory. SAPORE PROFUM, COLORE di Antipasti#22EXPORT - turnkey "Italian Spirit" More than 12 years ago we started to export Italian food. Thanks to: € cement of to complete us, agreements and unde and hold harmless the coron oility or potential ability of the crac greement contain the entire agreement of the um of the 44 ability of the coac hold harmless the costrador tiations, agreements and des All parties shall act to complete the work - a very large network of contacts with Italian food producers CONTRACT This Agreement contain the entire agreement the parties with re of this Agreement. All parties shall act to comp mersede all prior negotiations, agreements and agrees to indemnify and hold harmless the conte f the liability or potential liability of the the work described v standings - the extremely favourable contracts the company has been able to conclude with its italian suppliers 40YEARS IN THE HIGH END - the know-how developed in 40 years of activity DAC is the best way to bring the ultimate MADE IN ITALY to the world.#23DAC'S STRATEGY - export market DAC's export is so far 7,66% of the whole turnover: - We keep increasing and enhancing our well-established export activities, while being open to new, expanding markets. The entry in the Bidvest group has broaden our export clients portfolio and we are determined to work hard in order to fulfil our ambition to become the Made In Italy food hub for all group companies#24MANY THANKS FOR YOUR ATTENTION London, October 2015