Page 4 - PARMALAT 2017 ANNUAL REPORT

Contents

MISSION .................................................................................................................................................................4
BOARD OF DIRECTORS, BOARD OF STATUTORY AUDITORS AND INDEPENDENT AUDITORS ..................................5
A LETTER TO SHAREHOLDERS .................................................................................................................................6
KEY FIGURES AND COUNTRIES OF OPERATION .................................................................................................8
FINANCIAL HIGHLIGHTS ........................................................................................................................................10
OUR BRANDS.......................................................................................................................................................11
REPORT ON OPERATIONS .....................................................................................................................................12
THE GLOBAL DAIRY MARKET ............................................................................................................................................................. 14
REVENUE AND PROFITABILITY .......................................................................................................................................................... 16
Europe ........................................................................................................................................................................................... 21
North America .............................................................................................................................................................................. 24
Latin America ................................................................................................................................................................................ 26
Africa............................................................................................................................................................................................. 29
Oceania ......................................................................................................................................................................................... 31
REVIEW OF OPERATING AND FINANCIAL PERFORMANCE ................................................................................................................ 32
Parmalat Group ............................................................................................................................................................................ 32
Parmalat S.p.A. ............................................................................................................................................................................. 37
FINANCIAL PERFORMANCE ............................................................................................................................................................... 41
Structure of the Net Financial Position of the Group and Its Main Companies ............................................................................. 41
Change in Net Financial Position .................................................................................................................................................. 41
ENTERPRISE RISKS MANAGEMENT ................................................................................................................................................... 43
ACQUISITIONS ................................................................................................................................................................................... 47
INFORMATION ABOUT PARMALAT’S SECURITIES .............................................................................................................................. 50
Performance of the Parmalat’s Stock ............................................................................................................................................ 50
Stock Ownership Profile ................................................................................................................................................................ 51
Characteristics of the Securities .................................................................................................................................................... 51
HUMAN RESOURCES ......................................................................................................................................................................... 54
Group Staffing ............................................................................................................................................................................... 54
Management and Development of Human Resources ................................................................................................................. 54
Industrial Relations ....................................................................................................................................................................... 55
Corporate Social Responsibility ..................................................................................................................................................... 55
CAPITAL EXPENDITURES .................................................................................................................................................................... 56
RESEARCH AND DEVELOPMENT ....................................................................................................................................................... 57
OTHER INFORMATION ...................................................................................................................................................................... 58
REPORT ON CORPORATE GOVERNANCE AND THE COMPANY’S OWNERSHIP STRUCTURE .............................................................. 60
Issuer’s Profile ............................................................................................................................................................................... 60
Compliance ................................................................................................................................................................................... 63
Board of Directors ......................................................................................................................................................................... 63
Handling of Corporate Information .............................................................................................................................................. 73
Establishment and Activities of the Internal Committees of the Board of Directors ..................................................................... 74
Nominating and Compensation Committee .................................................................................................................................. 74
Compensation of Directors ........................................................................................................................................................... 76
Control and Risk Committee ......................................................................................................................................................... 77
Internal Control and Risk Management System ............................................................................................................................ 78
Procedure Governing Related-Party Transactions ........................................................................................................................ 84
Election of Statutory Auditors ....................................................................................................................................................... 84
Composition and Activities of the Board of Statutory Auditors .................................................................................................... 86
Shareholder Relations ................................................................................................................................................................... 88
Shareholders’ Meeting .................................................................................................................................................................. 88
Changes Occurring Since the End of the Reporting Year ............................................................................................................... 90
Information About Compliance with the Corporate Governance Code ......................................................................................... 90
Remarks About the Letter of December 13, 2017 from the Chairman of the Corporate Governance Committee ........................ 90
Tables ............................................................................................................................................................................................ 91
ATTESTATION PURSUANT TO ARTICLE 16 OF THE CONSOB MARKET REGULATION NO. 20249 OF DECEMBER 28, 2017 ....................................95
KEY EVENTS OF 2017 ........................................................................................................................................................................... 96
EVENTS OCCURRING AFTER DECEMBER 31, 2017 ............................................................................................................................. 100
BUSINESS OUTLOOK AND 2018 GUIDANCE ....................................................................................................................................... 101
MOTION SUBMITTED BY THE BOARD OF DIRECTORS TO THE SHAREHOLDERS’ MEETING ............................................................... 102
GLOSSARY .......................................................................................................................................................................................... 103