Page 17 - PARMALAT 2017 ANNUAL REPORT

As shown in the chart below, the most important geographic macroareas for the Dairy market in terms of volumes are
Western Europe and Asia, which, combined, account for more than 52% of the Dairy total.

Macroarea 2011-2016 CAGR %

Asia 3.7%
Middle East and Africa 3.1%
Australasia 1.5%
South America 0.0%
Eastern Europe 0.4%
Western Europe -0.5%
North America -0.6%
WORLD 1.2%

Data source: Euromonitor-year 2017
Market Size - Total Volume %

Western Europe and North America are more mature markets, with slightly negative growth rates (2012-2017 CAGR
of -0.5% and -0.6%, respectively); Asia, on the other hand, enjoyed the fastest growth rate (2012-2017 CAGR of 3.7%),
showing that it is a dynamic and rapidly expanding market, together with Africa and the Middle East (2012-2017 CAGR
of 3.1%).

More specifically, in the markets where the Parmalat Group companies operate, some categories showed attractive
upward trends in consumption (2012-2017 CAGR).
In North America, there was healthy growth in the Butter category (+2.4%) and Cheese category (+1.1%), which is the
main segment in which the U.S. subsidiary operates.
In South America, the strongest growth was recorded in the Cheese category (+2.2%).
The Australian market performed particularly well in the Yogurt (+2.9%) ad Flavored Milk (+5.7%) categories.
The Africa sales region, which was one of the most dynamic overall, enjoyed very attractive growth rates in the
Flavored Milk (+7.5%), Yogurt (+5.2%) and Cheese (+4.1%) categories.

In general terms, the position of private labels in the Dairy market contracted slightly compared with the previous
year, accounting for 13.7% of total value.
They have a stronger position in the markets for staple goods, such as Liquid Milk (pasteurized and UHT, with an
1
18.8% share) and cheese (17.2% share).

More specifically, in the main countries where the Parmalat Group operates, private labels hold an important value
market share in the Liquid Milk category amounting to 7.0% in Canada (Pasteurized Milk), 43.2% in Australia
2
(Pasteurized Milk) and 22.6% in Italy (UHT milk).

1
Data source: Euromonitor-year 2017
2
Source: AC Nielsen / IRI Aztec

Report on Operations – The Global Dairy Market 15