AUTOGRILL GROUP ANNUAL REPORT 2018

AUTOGRILL GROUP

ANNUAL REPORT 2018

(Translated from the original version issued in Italian) Annual Report 2018 Autogrill Group

2 Annual Report 2018 Annual Report

LETTER TO SHAREHOLDERS

Dear Shareholders,

2018 was a year of deep change, saddened by the premature loss of our Chairman, Gilberto Benetton, to whom we owe the establishment of our Group. I also want to commemorate him for his relentless drive for and support to international growth that, as a Chairman, he never failed to give. For us, his view of entrepreneurship, growth and internationalization will always be a key value to take inspiration from, for the future of Autogrill.

In 2018, we reached a turnover of €4.7 billion and made constant progress on the three- year plan that we shared with you last year and that will be fully implemented in 2019, as planned. We are actually deeply focused on improving the effectiveness of our operating model, keeping our operations at an excellent level, and achieving the financial results we set ourselves.

2018 saw good progress, especially in the second half of the year, when we proved to be able to quickly respond and adapt to the external volatile factors brought about by changes in macroeconomic variables, such as rising labor costs in North America and a moderate growth of motorway traffic in Europe.

A very positive result was a rise in turnover — on a like-for-like perimeter — reported by North American airports and the new contracts secured, such as those of Salt Lake City and Boston airports, which strengthen HMSHost’s undisputed market leadership.

I also would like to mention our expansion in the US airport convenience stores segment which, through the takeover of Avila after buying Stellar in 2016, now makes us the third most important industry player.

Our external growth strategy — the Company is always looking for profitable opportunities on the international markets — took place in other geographical areas as well, for instance in Germany, where we took over Le CroBag, a leading provider of Food & Beverage services in German railway stations.

Your company’s business strength is reflected in its global contract portfolio: the year’s new and renewed contracts totaled €4 billion, with an overall portfolio value rising to €36 billion and with an average duration of more than 7 years.

The year 2018 was also important in terms of organization, as we deeply renewed the management team with the arrival of Camillo Rossotto as Corporate General Manager and Group CFO of Autogrill, and Andrea Cipolloni as new CEO for Italy and European countries.

Then, Chairman Paolo Zannoni, a high-profile international figure, also joined our Company.

In addition, the Group continued to uphold a sustainable business culture, encompassing all social and environmental aspects. This approach also led us to try innovative circular economy solutions, such as the Wascoffee® project. These aspects are, and will continued to be, an increasingly important part of our way of doing business.

We are on the right path to achieve the priority goals that we have set for our Company: continuing to increase revenue, making our organization more and more efficient, improving profitability, and pursuing continued development in the Group’s key geographical areas.

Gianmario Tondato Da Ruos CEO

3 Annual Report 2018 Autogrill Group

4 Annual Report 2018 Annual Report

BOARDS AND OFFICERS

BOARD OF DIRECTORS 1

Chairman 2, 3 Paolo Zannoni 12, E CEO 2, 3, 4 Gianmario Tondato Da Ruos E Directors Alessandro Benetton Franca Bertagnin Benetton Ernesto Albanese 7, I Francesco Umile Chiappetta 6, 7, I Cristina De Benetti 6, I Massimo Di Fasanella D’Amore di Ruffano 5, 8, I, L Catherine Gérardin Vautrin 5, I Marco Patuano 5 Maria Pierdicchi 8, I Elisabetta Ripa 5, 7, I Paolo Roverato 5, 6 Secretary Paola Bottero

BOARD OF STATUTORY AUDITORS 9

Chairman Marco Rigotti 10 Standing auditor Antonella Carù 10 Massimo Catullo 10 Alternate auditor Roberto Miccù 10 Patrizia Paleologo Oriundi 10

INDEPENDENT AUDITORS 11 Deloitte & Touche S.p.A.

1 Elected by the annual general meeting of 25 May 2017; in office until 9 Elected by the annual general meeting of 24 May 2018; in office until approval of the 2019 financial statements approval of the 2020 financial statements 2 Coopted on 7 February 2019 to replace Gilberto Benetton; elected 10 Chartered accountant/auditor chairman of the board on the same date 11 Assignment granted by the annual general meeting of 28 May 2015, to 3 Powers assigned by law and the company’s by-laws, particularly legal expire on approval of the 2023 financial statements representation with individual signing authority 12 Appointed at the Board of Directors meeting of 7 February 2019 4 Powers of ordinary administration, with individual signing authority, per E Executive director Board resolution of 25 May 2017 I Independent director as defined by the Corporate Governance Code for 5 Member of the Strategies and Investments Committee Listed Companies (version approved in July 2014 by the Corporate 6 Member of the Internal Control, Risks and Corporate Governance Governance Committee and endorsed by Borsa Italiana, ABI, Ania, Committee Assogestioni, Assonime and Confindustria) and pursuant to Articles 147-ter 7 Member of the Related Party Transactions Committee (4) and 148 (3) of Legislative Decree 58/1998 8 Member of the Human Resources Committee L Lead Independent Director

5 Annual Report 2018 Autogrill Group

6 Annual Report 2018 9 51 21 22 83 82 72 91 62 95 47 30 66 80 44 111 112 195 41 114 13 21 103 103 105 110 102 102 95 189 33 194 43 104 104 104 104 104 109 117 107 Reconciliation between parent and consolidated equityReconciliation and consolidated between parent Information pursuant Arts. to and 71 70 Consob of Regulation 11971/1999 no. Independent auditors’ report Statement of cash flows of Statement Matrix linking GRI and material aspects related topics GRI Content Index Atypical unusual or transactions Drafting criteria changes in of equityStatement Autogrill Group’s social and environmental data Autogrill Group’s Significant non-recurring and transactions events Statement of comprehensive income Income statement Financial position Treasury shares Product: quality product and safety and focus the on customer People: People of Autogrill of People Group People: Planet: environmental protection Corporate governance Management and coordination partyRelated transactions pursuant Art. to Statement 2.6.2(8) the of Regulations Organized Markets for and Managed by Borsa Italiana S.p.A. development and Research financial of Statement position Change in and scope other consolidation corporate of actions Introduction Financial and non-financial risk management General business context A-Company: the Autogrill Group

CONSOLIDATED FINANCIALCONSOLIDATED STATEMENTS 1.6.11 1.6.10 1.5.10 2.1.5 1.5.8 1.5.9 1.6.9 1.5.7 2.1.4 1.5.6 1.6.8 OUTLOOK Consolidate non-financial statement GROUP PERFORMANCE GROUP 2.1.3 2.1.2 1.2.3 1.6.7 1.5.5 1.5.3 1.5.4 CONSOLIDATED FINANCIALCONSOLIDATED STATEMENTS NOTES TO THE FINANCIAL TO STATEMENTS NOTES ANNEXES OTHER INFORMATION BUSINESS SEGMENTS THE AUTOGRILL GROUP AUTOGRILL THE DIRECTORS’ REPORT DIRECTORS’ List of consolidated companies and other investments List consolidated of 1.6.2 1.6.3 1.6.4 1.6.5 1.6.6 2.1.1 Attestation by the CEO and manager in financial charge of reporting Independent auditors’ report 1.6.1 1.2.2 1.5.1 1.2.1 1.5.2 2. 1.4 1.5 1.2 2.1 2.2 1.6 1.3 CONTENTS 1. 1.1

DIRECTORS’ REPORT 1 10 1. Directors’ Report DEFINITIONS AND SYMBOLS

Exchange rates: more than half the periods for the effect of acquisitions, Group’s operations are located in disposals and exchange rates (by countries which use a non-euro currency, translating prior-year sales at the current- primarily the United States of America, year exchange rate) and then comparing Canada, Switzerland, and the countries in the two figures. the International division. Due to the local EBITDA: this is the sum of EBIT (earnings nature of the business, in each country before interest and tax) and depreciation, revenue is generally expressed in the amortization and impairment losses, and same currency as costs and investments. can be gleaned directly from the The Group also has a currency risk policy, consolidated financial statements, as financing most of its net assets in the supplemented by the notes thereto. principal non-euro currencies with debt in Because it is not defined in IFRS, it could the same currency, or entering into differ from and therefore not be currency hedges that achieve the same comparable with EBITDA reported by effect. However, this does not neutralize other companies. the impact of exchange rate fluctuations Underlying: an alternative when translating individual financial performance measure calculated by statement items. In comparisons with prior- excluding certain revenue or cost items in year figures, the phrase “at constant order to improve the representation of the exchange rates” signifies the increase or Group’s normalized profitability in the decrease that would have occurred had year. The components that have been the comparative figures of consolidated normalized in the current and prior year companies with functional currencies other are discussed in section 1.2.2 of the than the euro been calculated at the same directors’ report. exchange rates employed the previous Capital expenditure: this excludes year. investments in non-current financial assets Revenue: in the directors’ report this and equity holdings. refers to operating revenues, excluding Symbols: unless otherwise specified, fuel sales. Costs as a percentage of amounts in the directors’ report are revenue are calculated on this basis. Fuel expressed in millions of euros (Em) or sales are classified net of the millions of US dollars ($m). In the notes to corresponding cost under “Other the financial statements, unless otherwise operating income.” specified, amounts are expressed in Like-for-like growth: this measures thousands (Ek and $k). sales performance by adjusting organic Where figures have been rounded to the revenue growth for the impact of store nearest million, sums, changes and ratios openings and closures and changes in are calculated using figures extended to the calendar. Organic revenue growth is thousands for the sake of greater calculated by adjusting sales for the two accuracy.

11 Annual Report 2018 Autogrill Group

12 1. Directors’ Report 13

to maintainto firm by pursuing leadership expansion the of contracts portfolio and leveraging the megatrends in the industry, namely the projected growth of trafficworldwide and the of food & beverage business; taketo advantage value of creation opportunities in all channels served, principally airports the where potential is greatest, with selective, a more focused presence on motorways; innovateto by amplifying and diversifying products and services, including through the use tools new of and technologies that combine efficiency with improved customer relations in terms offerings of and communication channels. THE AUTOGRILL THE GROUP Autogrill aims be to recognized leading as provider the food of & beverage world’s services people on the for through move, a long-term strategy based on three main pillars: • • • STRATEGY OPERATIONS Autogrill largest provider food of is & beverage the services world’s and travelers for the recognized the of North leader American and Italian markets. Present in 32 countries with than more of a workforce 60,000, manages it about 4,000 establishments in approximately 1,000 locations. operates It mainly through concessions and subconcessions: airports, at along motorways and in railway stations, as as well on high streets and shopping at centers, tradefairs and cultural attractions. The Group manages a portfolio 300 over brands, of both international and local, and offers a highly varied selection including proprietary brands and concepts as (such Ciao, Bistrot, Puro Gusto, Motta, Bubbles, Beaudevin, and Burger Le Federation CroBag) and others owned by third parties. The latter international include household names (Starbucks Coffee, Burger King, Prêt as etc.) as well à Manger, emerging national brands (Leon, Shake Shack, Chick-fil-A, Panda Express).

1.1 THE AUTOGRILL GROUP HAS OPERATIONS IN 32 COUNTRIES Australia, Austria, Belgium, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Greece, India, Indonesia, Ireland, Italy, Malaysia, Maldives, New Zealand,

LOCATIONS IN THE WORLD 1,028 1. Directors’ Report

States, Vietnam. United Kingdom, UnitedUnited Kingdom, United Arab Emirates,United Arab The Netherlands, Turkey, Turkey, The Netherlands, Sweden, Switzerland,Sweden, Russia, Slovenia, Spain, Slovenia, Russia, Norway, Poland, Qatar, Qatar, Poland, Norway, 1,028 NORTH AMERICA 87 AIRPORTS

INTERNATIONAL

39AIRPORTS

EUROPE 520 MOTORWAY AREAS 1. Directors’ Report LOCATION BY CHANNEL

CHANNEL OF ACTIVITY N. AMERICA INTERNATIONAL EUROPE TOTAL

Airports 87 39 21 147

Motorways 105 - 520 625

Railway stations - 23 139 162

Other 1 6 87 94

TOTAL 193 68 767 1,028

PROPRIETARY BRANDS LICENSED BRANDS

¨

17 SIMPLIFIED GROUP STRUCTURE1-2

AUTOGRILL S.P.A.

AUTOGRILL AUTOGRILL ADVANCED AUTOGRILL HMSHOST CORP. ITALIA S.P.A. BUSINESS SERVICE EUROPE S.P.A. S.P.A.

NUOVA SIDAP S.R.L. AUTOGRILL AUSTRIA AUTOGRILL CZECH HOST GMBH S.R.O. INTERNATIONAL, INC.

AUTOGRILL D.O.O. AUTOGRILL POLSKA (SLOVENIA) SP.ZO.O. HMSHOST INTERNATIONAL B.V.

AUTOGRILL IBERIA AUTOGRILL HELLAS S.L.U. SINGLE MEMBER LLC

HOLDING DE AUTOGRILL BELGIE PARTICIPATIONS N.V. AUTOGRILL S.A.S.

AUTOGRILL SCHWEIZ AUTOGRILL CÔTE A.G. FRANCE S.A.S.

AUTOGRILL DEUTSCHLAND GMBH

LE CROBAG GMBH & CO KG

1. Where not otherwise specified, all companies are wholly owned. See the annexes to the consolidated financial statements for a complete list of equity investments 2. Company names and the Group structure are updated as of March 2018 and reflect the reorganization of Autogrill S.p.A. in 2017, with effect from 1 January 2018 1. Directors’ Report 5 CEO EUROPE CEO

4 GROUP INTERNAL AUDIT AUDIT INTERNAL GROUP DIRECTOR GROUP PEOPLE & TRANSFORMATION DIRECTOR GROUP PUBLIC AFFAIRS DIRECTOR GROUP GENERAL GENERAL GROUP COUNSEL CEO INTERNATIONAL CEO 3

DOARD OF DIRECTORS DOARD OF GROUP CHIEF EXECUTIVE OFFICER GROUP CHIEF EXECUTIVE Canada, USA Ii includes Northern Europe (Denmark, Finland, Ireland, Norway, Sweden, The Netherlands, UK) and Rest of the world (Australia, China, India, Indonesia, Malaysia, Maldives, New Zealand, Qatar, Russia, Turkey, United Arab Emirates, Vietnam) Italy and Other European countries: Austria, Belgium, Czech Switzerland Republic, Spain, Slovenia, Poland, Greece, Germany, France, GROUP CHIEF CHIEF GROUP OFFICER MARKETING GENERAL MANAGER GENERAL MANAGER CORPORATE & GROUP (FINANCIAL CFO REPORTING) CEO NORTH AMERICA NORTH CEO GROUP CORPORATE GROUP CORPORATE COMMUNICATION COMMUNICATION MANAGER 3. 4. 5. ORGANIZATIONAL STRUCTURE AS OF 14 MARCH 2019 STRUCTURE AS OF 14 ORGANIZATIONAL Annual Report 2018 Autogrill Group

20 1. Directors’ Report 21 3 . 4 The growth was driven by heavy traffic while (+2.6%), 5

with respect 2017. to 6

Source: ACI - Airports Council International Statistics Transportation of Bureau Source: Source: AISCAT (provisional data) Source: Federal Highway Administration

PERFORMANCE 3 4 5 6 1.2.1.2 THE TREND IN MOTORWAY TRAFFIC THE TREND IN MOTORWAY 1.2.1.2 In the motorway channel the Group operates mainly in Europe, with a strong presence in France, Italy, Belgium, Germany, Switzerland and Spain. largest motorway market, trafficIn the Italy, Group’s in (based 2018 on November figures) increased by 0.4%. 1.2.1 GENERAL BUSINESS CONTEXT GENERAL BUSINESS 1.2.1 THE TREND IN AIRPORT TRAFFIC 1.2.1.1 Airports primary are the Group’s channel around and generate 58% total of revenue, with a widespread presence in North America, Europe, Asia and the Pacific. In North largest America, airport the Group’s market, passengers increased by 5.1% in 2018, with domestic traffic up by 4.8% and international traffic by 6.4%. Specifically, traffic in the United States rose by 4.8% light traffic vehicle was down by 0.3%. In North America, Autogrill’s presence in the motorway channelis concentrated in the eastern United States and eastern Canada. In the United States, traffic an showed increase of 0.3% In Europe there was a 6.2% increase in passengers Asia-Pacific with respect 2017. to trafficsaw expand by 6.6%, while growth in the Middle East came 2.2%. to GROUP GROUP 1.2 Autogrill Group Annual Report 2018 22 7 • • 15on 2017. December More specifically: companies of each of those shareholders’ resolved meeting the by increases capital the for consideration as 2018, 1January from effective S.p.A., Service Business Advanced Autogrill and S.p.A. Europe Autogrill S.p.A., Italia to Autogrill units business of certain kind in 2017, completed in contribution of the consisted reorganization, The • • • • objectives: following of the pursuit in mainly plan reorganization approved acorporate 9NovemberOn 2017, of Directors S.p.A.’s Board Autogrill CORPORATE REORGANIZATION revenue of $12m. 2018 it to earned December September From Albuquerque). and Phoenix, (Denver, Francisco, San airports U.S. at four 25 locations operates Avila Partners. Stellar firm retail airport the (“Avila”)& Management through Development Retail Avila acquired Corporation HMSHost subsidiary U.S. the channel, airport American Group’s of the North the in part as 2018, expansion August 31 On 2018. to December March from E 37.4m grossed and license under and directly both managed are Germany) (113 in CroBag’s of them locations Le Poland. 118 and Austria Germany, in stations at railway locations &beverage food CroBag Le operate F.F.N. KG GmbH and &Co. CroBag Le companies 100% GmbH, of the which acquired Group GmbH, the Deutschland Autogrill subsidiary the through 2018, February 28 On ACQUISITIONS 1.2.2  and the disclosure document released on 28 December 2017 28 on December released document disclosure S.p.A. the and Autogrill of statements financial separate the of reorganization”) 2.2.1 (“Corporate section see details, further For operating in southern Europe and continental Europe; continental and Europe southern in operating subsidiaries b) wholly-owned Italy); and the (including Europe continental and Europe southern in of activities coordination for responsible the structures includes: a) the that unit business of the ownership acquired S.p.A. Europe Autogrill Nuova S.r.l.; Sidap subsidiary the well as Italy, as in locations street station/high railway and concessions motorway/airport of charge in unit business of the ownership acquired S.p.A. Italia Autogrill ventures. joint and partnerships develop potential and efficiencies structural pursuing while of each area, objectives specific the on focus can management that so flexibility increased with Group the to provide areas; business individual of the understanding Group’s abetter the fostering to communicate to more investors, clearly position units; business individual of the management effective and efficient for need the the meets better that governance to ensure arrangement; organizational current the with and nature multichannel and international highly its with line in Group’s the structure to redefine corporate AND OTHER CORPORATE ACTIONS CHANGE IN SCOPE OFCONSOLIDATION 7 1. Directors’ Report 23 1.85 1.34 0.05 0.46 Renewed New 2.24 1.05 0.73 0.46 reaching E 35.88 the bn at 2018 of end 8 Autogrill Advanced Business Service S.p.A. acquired ownership the of business unit in chargeproviding of support and service activities the to Group companies up by Autogrillheaded S.p.A. Total value of contracts calculated as the sum of expected revenue from each throughout its duration. equity-consolidated companies by Also Group held contracts includes North America International Total (Ebn) Europe • The transaction consolidated figures, did affect not the Group’s since qualifies it as a business combination under common control. 8 NEW AND RENEWED CONTRACTS GROUP PERFORMANCE GROUP inRevenue increased 2018 by 5.0%, with like-for-like growth 3.5%, of driven by like- performancefor-like airports at primary which (+5.6%) are the Group’s business channel. Profit-wise, there was a 3.0% in improvement underlying EBITDA constant at exchange rates, thanks growth revenue to andin constant of spite cost-of-labor pressure in the United States. The businesses acquiredin (Le 2018 CroBag in Germany and Avila in the U.S.) a made positive contribution and operating revenue to margins, and the further Group made progress in focusing on and strengthening strategic channels. The contracts portfolio continued expand, to with years. an duration During average 7.1 of contracts the year, worth approximately E 1.8bn acquired and were ones new renewed were in the amount E 2.2bn. of are Below the details by geographical area: Autogrill Group Annual Report 2018 24 9 STATEMENT CONSOLIDATED INCOME CONDENSED EBITDA Other operating expense Total revenue and other operating income Pre-tax Profit Pre-tax Other operating income Leases, rentals, concessions and royalties Personnel expense Raw materials, supplies and goods Income tax Revenue EBIT losses impairment and amortisation Depreciation, (Em) – Income (expenses) from investments expense financial Net – to: attributable Result – basic ( share per Earnings – diluted

non-controlling interests non-controlling owners of the parent the of owners operating income” in accordance with management’s protocol for the analysis of Group figures. This revenue came to E 417.9m to came revenue This figures. Group of 2018 in analysis the ( for protocol management’s with accordance in income” “Other as operating classified is which of amount net the sales, fuel from costs and revenue include not do they because primarily statement income consolidated the in shown amounts the from differ goods” and supplies materials, “Raw and “Revenue” 396.0m in 2017) and the cost to E 397.6m to E 396.0m 2017) in cost the and ( E cents.): Full year2018 (1,445.6) 1 .0) 0 7. 5 5 (1, 4,695.3 4,826.4 (560.4) (236.9) (876.5) (34.5) 386.9 150.0 (29.1) 131.1 121.0 68.7 86.5 .0 7. 2 0 7. 2 7 8 17. 375.5m the previous year) E 375.5m previous the - 100.0% revenue 102.8% 30.8% 33.2% 18.7% 19% 11.9 0.7% 0.4% 2.8% 5.0% 0.6% 1.5% 8.2% 3.2% 2.6% 1.8% % of - Full year2017 (1,421.4) (1,519.8) 4,594.6 (542.7) (828.2) (213.7) 4,711.1 (45.7) 1.4 116. .3) 3 7. 2 ( 158.7 185.2 399.0 113.0 96.2 16.9 .8 7. 3 8 7. 3 0.8 9 100.0% revenue 102.5% 30.9% 18.0% 33.1% 11.8% 4.7% 2.5% 0.4% 0.6% 1.0% 2.5% 8.7% 4.0% 3.5% 2.1% % of - -24.5% -98.4% -28.6% -23.5% -23.8% -19.0% 10.8% 12.6% -3.0% 6.5% 5.7% 2.2% 2017 2.4% 3.3% 1.7% 5.8% 2.4% Change At constant exchange -98.3% -24.9% -20.2% -15.3% -21.6% -19.6% 10.3% 13.3% 14.1% 10.1% 6.0% 5.0% 5.3% 8.9% 0.5% 5.3% 4.1% rates 1. Directors’ Report 25

10 3m), comparedE 3m), with zero the previous When an year. E 16.4m) mainly due the to stock market performance of constituting a strategic one-time expense that temporarily penalizes the performance indicators calculated from the consolidated income statement prepared according IAS to 1. These also non-recurring include charges E 1.6m of in the United States improve to the efficiency the of finance units that support operating activities; the costs acquisitions of ( acquisition is successfully the completed, cost is treated as an ancillary expense that penalize not does consolidated results; the non-recurring expense E 4.4m of in 2018, from the definitive calculation the of impact the of U.S. tax reform on the taxation foreign of earned income. the costsstock of option plans. The estimated cost the of Phantom StockOption plan is heavily impactedby theperformance Autogrill of shares and their fluctuation. Additionally, results 2018 the include costs the of “Performance new Share plan. Units” On the stockwhole, option plans cost in E 1.5m 2018, down sharply ( since 2017 Autogrill shares; the costs efficiency of gains local at operating facilities (affecting for only), 2018 E 25.3m. The bulk these of costs concern early retirement and payouts other benefits paid under the “intergenerational agreement” in in force Italy, This initiative gives employees close to retirement the chance to enjoy an early, guaranteed pension and builds the company’s momentum through the hiring of talented young workers. For further details, see section XXIIIrisks (“Provisions and charges”) for of the notes to the consolidated financial statements

• • results influenced were In 2017, by the applicable types non-recurring of charges listed inabove, addition E 3.3m to the for corporate reorganization. Comparing the consolidated income statements without showing the impact these of components separately would profitability give a distorted view the of in Group’s 2018 compared with normalized results the for previous and would limit year, therefore the value the of and condensed consolidated the income (shown above) statement consolidated accounts prepared in accordance with IAS 1. 10 • ALTERNATIVE PERFORMANCE MEASURES PERFORMANCE ALTERNATIVE Comparisons between results 2018 and figures the for previous year are significantly affected by: • Autogrill Group Annual Report 2018 26 (**) (*) below: shown as calculated are These share. per earnings basic underlying company), parent and shareholders of the to (attributable profit net EBIT, underlying underlying margin, EBITDA underlying EBITDA, underlying useful: to be thought are measures performance alternative Group’s following the the performance, reporting in above factors of the impact significant the 2017 considering 2018 and and in achieved of results basis the On Acquisition fees Acquisition Cross-generational deal and other efficiency Acquisition fees Acquisition Cross-generational deal and other efficiency managementStock-based incentive plans Stock-based managementStock-based incentive plans fees Acquisition Cross-generational deal and other efficiency margin EBITDA (Em) parent) the of shareholders to (attributable profit Net (Em) managementStock-based incentive plans Operating profit (EBIT) (Em) EBITDA EBITDA margin underlying EBITDA underlying Corporate reorganization project costs Earnings per share – basic ( –basic share per Earnings parent) the of Net profit underlying (attributable to shareholders ** impact tax reform US * Tax effect Corporate reorganization project costs Operating profit (EBIT) underlying Corporate reorganization project costs Earnings per share underlying – basic ( –basic underlying share per Earnings statements and the theoretical tax charge. tax theoretical financial the and consolidated statements the in recognized taxes between areconciliation for XXXIII note See year. previous the for estimate revised the as basis same the on 2018 for estimated charge was tax The 2017 downward. in adjusted was estimated 2018 in rules, benefit new the the about clarifications 2016. to later of light In respect with liability tax the lowered 2017 which the of reform, aresult U.S. tax as force in rate and rules the using 2017 for calculated charge was tax The losses. fiscal of presence the to due companies Italian the affecting components the countries), for not and European some and (U.S. benefit atax produced that components the for only calculated was effect tax The E cent.) E cent.) Full year2018 Full year2018 Full year2018 386.9 150.0 416.7 101.6 179.8 40.0 40.0 8.2% 8.9% 25.3 25.3 25.3 68.7 (1.2) 27.0 4.4 3.0 3.0 3.0 1.5 1.5 1.5 - - - Full year2017 Full year2017 Full year2017 205.0 185.2 106.9 399.0 418.8 8.7% 42.1 42.1 16.4 16.4 16.4 9.1% 96.2 (1.6) .4) 4 7. ( 37.8 3.3 3.3 3.3 ------28.6% -12.3% -19.0% -0.5% -3.0% -5.0% 2017 2017 2017 Change Change Change exchange rates exchange rates exchange rates At constant At constant At constant -24.9% -15.3% -0.7% -8.6% 0.5% 3.0% 1. Directors’ Report - 27 0.1% 3.5% 5.6% 4.3% (15.2) (15.2) (15.2) Disposals Like-for-like - 9.8 11. 6 3 7. 4 37. 4 47.2 Acquisitions 7. 2 % 5.0% -1.3% 20.0% E 37.4m) and Avila of At constant Change (39.1) (14.3) (65.9) (26.8) (251.4) Closings (212.9) (293.0) exchange rates E 9.8m) than more offset the 3.1% 2.2% 2017 -2.5% 19.3% 31.3 59.6 69.7 28.2 252.1 342.7 213.5 Openings 4.1% 4.1% 3.5% 1.6% 0.2% 3.7% 6.8% Organic growth 305.6 4,594.6 4,594.6 1,629.3 2,659.7 2.4 Like-for-like 86.1 24.9 32.8 22.5 101.6 Full year 2017 143.8 revenue dipped by 1.3% (-2.5% at current at dipped revenue by exchange 1.3% (-2.5% rates), - , sales increased constant at at exchange by 7.2% (+3.1% rates FX 0.5 364.5 (5.2) (5.2) 4,695.3 2,742.2 2,742.2 1,588.6 (15.9) (124.8) (103.6) Full year 2018 2017 657.0 512.3 2, 707.0 Full year 4,594.6 4,594.6 1,029.0 1,686.1 2,396.2 2018 In the airport channel current with exchange rates), all regions making a contribution. Like-for-like growth came +5.6%, to thanks strong to North American and International performance. In the motorway channel reflecting a modest like-for-like performance caused by widespread weakness (+0.1%) in motorway traffic and the narrower boundary as a result selective of renewals in Italy. Revenue growthRevenue primarily is due a solid to like-for-like increase with in sales (+3.5%), all regions contributing. Like-for-like growth was especially strong in the airport channel (+5.6%). inRevenue benefited 2018 from openings new in North America (Fort Lauderdale, Charlotte, Baltimore, and Newark airports), Northern Europe and (Oslo Stavanger), and Asia (Cam Ranh and Da Nang in Vietnam, Delhi New in India). As closures, for in additionthe to normal turnover upon expiration contracts of (particularlyin the United locations closed accordingStates), were plan to North at American shopping centers, the reduction in motorway contracts in which began Italy, in has 2016, been now andcompleted the exit from various motorway locations in Spain and Germany. Acquisitions and disposals resulted in positive a net contribution growth revenue to for the year: the acquisition Le of CroBag in Germany in early ( 2018 in the United States during the second half the of year ( disposal some of non-strategic operations in Europe (Marseille airport and rest stops in Poland) the at 2017. of end REVENUE The Group earned E 4,695.3m of consolidated revenue in 2018, an increase 5.0% of at constant exchange current at (+2.2% rates on the exchange previous rates) year’s of E 4,594.6m.revenue 2,821.5 698.0 584.6 Full year 4,695.3 2,389.1 1,721.6 1,023.6 1,023.6 of which Italy Other European Other European countries North America ($m) (Em) Motorways Total revenue Total (Em) NorthAmerica * Airports Other channels Total Revenue Total International Europe REVENUE BY CHANNEL * Autogrill Group Annual Report 2018 28 to the reduction in costs for stock option plans. for option stock costs in reduction to the mainly year, thanks previous the E 36.3m from down to E 24.1m, came costs Corporate broken is below: segment down business by of revenue. impact The rates) went 9.1% exchange and from to 8.9% rates (-0.5% exchange at current constant ( E 416.7m of EBITDA Underlying of efficiency. degree expected Norway), have and not yet reached the (Spain cases some in which, contracts acquired fees newly concession rent under and in rise the and 2018, March in Italy in launched plan retirement early of the costs the 2017). reflects in decrease (8.7% of the Most of revenue to 8.2% rates), +0.5% at constant rates and amounting exchange current (-3.0% at year previous the E 399.0m with 2018 compared in of E 386.9m EBITDA EBITDA and good like-for-like sales (+4.3%). sales like-for-like good and CroBag, of Le acquisition the Europe, in malls outlet at various to new openings thanks channels other Revenue in – Stock-based management incentive plans incentive management – Stock-based (Em) – Other efficiency fees – Acquisition AmericaNorth – Stock-based management incentive plans incentive management – Stock-based International Europe – Cross-generational deal and other efficiency other and deal – Cross-generational – Stock-based management incentive plans incentive management – Stock-based – Acquisition fees – Acquisition – Cross-generational deal and other efficiency other and deal – Cross-generational plans incentive management – Stock-based Corporate Total – Corporate reorganization project costs project reorganization – Corporate increased by 20% (+19.3% by rates) exchange increased at constant 418.8m in 2017) showed an increase of 3.0% at of 3.0% 2017) in increase showed an E 418.8m Full year2018 23.4 (0.0) 24.3 29.7 0.7 0.5 0.4 0.3 2.0 0.9 1.6 4.3 0.5 0.6 - Full year2017 19.8 11.1 4.2 3.3 1.5 2.9 4.2 2.9 1.5 .8 7. - - - - - 1. Directors’ Report

29

Full year 2018 year Full 8.9%

and a

11 Other costs Other

0.1%

concessions Leases, rentals, rentals, Leases,

(0.7%)

expense Personnel Personnel

0.1%

goods supplies and and supplies

.

Raw materials, materials, Raw 12

0.3%

exchange rates exchange

at constant constant at 9.0%

Full year 2017 year Full

difference Exchange rate rate Exchange

(0.1%)

Full year 2017 year Full 9.1% E 1.3m in 2017). The net positive trend in is income the combined tax in 2017 effect of a positive impact for the of € 13m release of deferred tax liabilities on depreciation provided for in previous years due to the reduction in the future taxnegative rate, and a impact for the of € 5.7m one-time tax on profits, regardless of whether they will be distributed, earnedthe outside United States by the subsidiaries of HMSHost Corp. since 1986 The net negative results trend from in 2018 the recalculation, on the basis of the final tax law of published the in 2018, one-time tax on profits earned outside the United States by the subsidiaries of HMSHost Corp. since 1986

non-recurring charge E 4.4m of in 2018 The average taxThe average rate, excluding IRAP, CVAE, and the impact the of U.S. tax reform from the figure both for years, from 32.6% went 22.3%. to in 2017 8% 4% 0% The U.S. tax a positive to reform led non-recurring impact E 7.4m of in 2017 11 12 INCOME TAX decreased fromTax E 45.7m E 34.5m, to in 2017 primarily due the to U.S. tax reform, which the reduced on businesses rate operating in the United States. This includes item taxes charged on operating profit (IRAP in Italy and CVAE in amounting France), to E 3.1m ( DEPRECIATION, AMORTIZATION AND IMPAIRMENT LOSSES IMPAIRMENT AND AMORTIZATION DEPRECIATION, These came E 236.9m to in 2018, an increase 14.1% of constant at exchange rates current at (+10.8% compared exchange with rates) figure the 2017 E 213.7m. of The increase reflects the increase in capital expenditure during the second half and 2017 of in as 2018 as well higher impairment losses, which rose from E 1.1m E 9.1m to and were concentrated in Spain, Italy, and outlet malls in China. As this a percentage revenue of rose fromitem 4.7% 5.0%. to in 2017 EXPENSE FINANCIAL NET financialNet expense in came 2018 the E 29.1m, to previous as up a from year, E 27.3m result higher of and a greater debt impact from exchange losses. The trend was partially offset by a decrease in (from the 3.8% cost debt of average 3.4% to in 2017 this year). CHANGE IN UNDERLYING EBITDA MARGIN EBITDA MARGIN IN UNDERLYING CHANGE Autogrill Group Annual Report 2018 30 13 information). for further (see note 2.2.2 goodwill E 19.3m in and trademarks in E 30.6m in brought consolidation first-time whose CroBag, of Le acquisition the reflects assets intangible in increase the particular, In statements. financial consolidated to the notes the in found be can position statement of financial the in changes on Comments POSITION CONSOLIDATED STATEMENTRECLASSIFIED FINANCIAL OF 1.2.3 FINANCIAL POSITION ( to E 17.8m came interests Non-controlling rates),exchange E 106.9m to E 101.6m. from at current rates (-5.0% exchange fell at 0.7% constant by profit underlying The losses. impairment and amortization 2017, in depreciation, in increase E 96.2m due to the from down to E 68.7m, amounted parent of the owners to the attributable 2018The profit YEAR THE FOR PROFIT assets financial current and equivalents cash and Cash liabilities financial Current F) financialNon-current assets liabilities financial Non-current E) Equity attributable to non-controlling interests Equity attributable to owners of the parent the of owners to attributable Equity Trade receivables Inventories H) +G) (F position financial Net G) Other receivables A) C) +B) (A capital Invested B) Other payables Trade payables D) Financial assets equipment and plant Property, (Em) Intangible assets

financial assets (non-current) in the consolidated statement of financial position financial of statement consolidated the in (non-current) assets other in financial included and position financial net the in receivables financial non-current as (€ 15.5m) classified from parties” third receivables “Financial include not do which assets,” “Financial of exception the with notes, and statements consolidated the financial from derived directly are position financial of statement consolidated reclassified the in figures The Non-current financial indebtedness financial Non-current Equity Total (E +FG), (E Total D) in as Current net financial indebtedness assets Non-current liabilities Other non-current non-financial assets and Working capital Net invested capital (A +BC) (A capital invested Net 13 16.9m the previous year). previous E 16.9m the 31.12.2018 1,542.2 (390.4) 1,972.9 (376.5) 1,412.1 1,412.1 (430.7) (251.1) (173.9) (130.1) 860.4 982.7 166.6 960.9 685.9 (15.5) 844.9 121.6 671.1 741.0 55.2 48.0 29.4 .3 7. 7 31.12.2017 (200.8) 1,239.3 1,239.3 (365.6) 1,776.9 1,371.0 (351.2) (405.9) (131.7) 225.4 145.7 880.9 871.6 544.0 649.9 (12.5) 116.2 531.9 695.3 519.4 24.4 45.4 24.6 49.0 (148.2) (198.5) (24.8) 328.6 (50.3) (25.3) 325.6 (24.8) 101.8 172.8 172.8 196.0 171.2 127.1 2017 36.0 (3.0) 20.9 89.3 45.8 (1.0) 5.4 5.0 9.8 1.6 Change exchange rates At constant (150.8) (198.3) 310.8 308.3 (16.8) 144.6 144.6 (47.5) (21.6) 150.5 138.7 110.1 (11.8) 63.4 25.2 82.2 22.8 (2.4) (0.3) 34.6 4.2 5.0 9.4 5.9 1. Directors’ Report 31 3.2 10.1 (1.9) (6.3) (5.8) (5.4) 26.7 (19.8) (88.1) (17. 3 ) (12.1) (82.6) (59.0) (16.5) Change 9.7m the 9.7m previous - E 39.7 39.7 (1.2) (0.5) ( 5 7.1) 397.3 313.6 (10.7) 399.0 (26.6) (50.4) (273.8) 7.5m( E Full year 2017 (3.1) 33.4 (6.4) (17. 3 ) 37 7. 5 (42.9) (98.7) 323.7 (59.0) (55.8) 386.9 (23.4) (30.3) (290.3) in the amount of 14 Full year 2018 40.7m in 2017). Dividends were also Dividends were paidE 40.7m in the to 2017). non-controlling Shown net of capital increases Includes dividend paid to minority shareholders in subsidiaries, net of capital increase

14 NET FINANCIAL POSITION FINANCIAL NET 31 at December was debt 2018 Net E 671.1m, compared with E 544.0m the previous At theyear. close 2018, was of in debt of 63% U.S. dollars 31 at (83% December 2017) and the rest in euros. Fixed-rate including debt, converted fixed-rate to debt by means interestof swaps, rate was 33% the of total compared with 38% the at 2017. of end The fair value interest of hedging rate derivatives 31 at December was 2018 a negative E 1.7m (essentially nil the at close 2017). of Debt consists primarily committed of non-current credit lines from banks and long- of term bonds Loans (private an remaining placements). have average life about of three years and eight months, compared with three years and three months 31 at December 2017. * cashNet flow after capital expenditure decreased by E 6.3m as a result higher of expenditure in connection with the expansion the of contracts portfolio. The decreased cash flow from operating activities, reflecting the reorganization costs, was offset by taxeslower in the United States as a result the of tax reform in addition a U.S. to tax refund 10m). of E 8.5m ($ Overall, the acquisitions cash net absorption responsible for were E 76.3m: of E 59m Lefor CroBag in Avila Germany in for the United States. and E 17.3m In June the 2018 Group paid a dividend the to Autogrill of shareholders S.p.A. of E 48.3m ( shareholdersconsolidated of companies CASH FLOW year). EBITDA Other non cash items cash non Other activities operating from flows Cash Tax paid Net cash flows from operating activities Net interest paid investment Net Change in net working capital capital working net in Change (Em) Avila acquisition Net cash flows after investment Le CroBag acquisition dividend pre flows cash operating Free * payment Dividend Free operating cash flows Autogrill Group Annual Report 2018 32 2020. March in maturity of original its ahead down) drawn been (of has $200m $300m which of nominal loan revolving to prepay the used were lines two The $50m maturity. on remaining of the reimbursement 2020, with June in of $50m starting payments involves loan annual term The of $200m. amount the in both line, credit arevolving and loan term amortizing of an comprised 2023, June in maturing anew loan obtained Corp. HMSHost subsidiary 2018 the June 26 On 2020. March in due was to mature that E 400m of nominal line credit revolving down drawn partially the 2018, to prepay, were used February lines in credit two The • • lines: new credit two obtained S.p.A. Autogrill 2018, January In 100m maturing in January 2023. 2023. January in of E 100m maturing facility a revolving remaining commitment maturity; on settled be of will E 75m the and 2021, January of from E 62.5m as payments annual two reduced through be will commitment the remaining line, For revolving the E 50m maturity. on of the reimbursement with 2021, January in starting of E 25m payments annual two involves loan term amortizing The 2023. January in maturing facility asingle into packaged ofE 200m, line credit arevolving of E 100m and loan term amortizing an 1. Directors’ Report 33 7.1% 7. 4 % 5.0% 0.5% 1.7% 2.4% 4.2% -0.5% 21.1% 17. 8 % 18.0% 81.7% 12.2% -17. 3 % 33.6% 20.4% At constant At constant At constant exchange rates exchange rates exchange rates Change 2017 3.7% -3.0% -2.7% Change Change 33.6% -17. 7 % 2.1% 2.2% 6.2% 2017 2017 -0.5% -0.3% 15.1% 17. 3 % 11.9 % 14.9% 14.1% 81.7% - % of 8.7% 6.4% 11.3% 11.2 % revenue 2.6 95.4 30.5 261.9 657.0 512.3 133.5 4,594.6 1,029.0 1,686.1 2,396.2 5 7. 8 399.0 (36.3) 108.7 268.8 Full year 2017 Full year 2017 Full year 2017 - 4.7 35.7 300.9 153.7 698.0 106.8 584.6 % of 4,695.3 8.2% 2,389.1 1,721.6 5.2% 1,023.6 10.9% 10.3% revenue

Full year 2018 Full year 2018 89.5 60.0 386.9 (24.1) 261.6 Full year 2018 SEGMENTS BUSINESS

Other European countries Other European Italy Total Europe Total Total Revenue Total North America North America International Total EBITDA Total International Europe (Em) CAPITAL EXPENDITURE BY GEOGRAPHICAL AREA EXPENDITURE BY CAPITAL (Em) REVENUE BY GEOGRAPHICAL AREA REVENUE BY GEOGRAPHICAL North America International (Em) EBITDA BY GEOGRAPHICAL AREA Europe Corporate costs Corporate

Corporate capital expenditureTotal 1.3 Autogrill Group Annual Report 2018 34 16 15 traffic. in trend downward lower the given were slightly sales motorway while average receipts, to higher chiefly thanks 5.3%, by increased at airports Sales centers. shopping from exit planned the and turnover contract normal by caused made for up closures airports, Newark and Baltimore, at Charlotte, Fort Lauderdale, including New openings, revenue of $12m. 2018 contributed September in of Avila acquisition The sales. motorway in weakness by offset (+5.1%) partially was channel that airport the in growth even stronger with of 4.1%, growth sales like-for-like by driven was America North in Performance rates exchange at current rates +4.2% (also exchange at constant of 4.2% increase an to $2,822m, came America North Revenue in NORTH AMERICA 2,707m. $ 2,707m. ($m) REVENUE BYGEOGRAPHY US Canada Total revenue

The change at current exchange rates includes the impact of the appreciation of the US dollar against the Canadian dollar dollar in 2018) Canadian (minimal the against dollar US the of appreciation the of impact the includes rates exchange current at change The This division includes operations in the United States and Canada and States United the in operations includes division This FY 2017 $ 2,707m 1 FX 12 Acquisitions 15

Disposals 16 ) compared with the previous year’s previous the with ) compared 252 Openings Full year2018 2,520.2 2,821.5 (251) 301.4 Closings (+4.1%) 102 Full year2017 Like-for-like 2,415.7 ,707.0 2, 291.3

FY 2018 $ 2,822m 4.3% 2017 3.4% 4.2% Change exchange rates At constant 4.3% 3.3% 4.2% 1. Directors’ Report 35 1.8% 1.7% 4.2% 5.3% -6.3% -0.5% 20.4% At constant At constant At constant exchange rates exchange rates exchange rates Change Change Change 1.8% 1.7% 4.2% 5.3% 2017 2017 2017 -0.4% -6.3% 20.4% 22.5 5.6% 471.5 11. 2% 11. 4% 150.8 150.8 303.6 303.6 308.4 308.4 2, 707.0 2,213.0 Full year 2017 Full year 2017 Full year 2017 21.1 6.4% 11.1% 469.6 181.5 314.0 10.9% 308.9 308.9 2,821.5 2,330.9 Full year 2018 Full year 2018 Full year 2018 Most capital expenditure toward airport went La Guardia, concessions York New at Phoenix, Orlando, Dallas, Charlotte, Seattle, and Lauderdale and Fort locations to on the New Jersey Turnpike. EBITDA in North America came $ 308.9m, to up from $ 303.6m the previous year both at current(+1.7% and constant EBITDA exchange as a percentage rates). of from 11.2% went revenue mainly 10.9%, due to the to less profitable motorway channel and persistent upward pressure on wages. Underlying EBITDA $ 314m of compares with $ 308.4m an for increase 1.8% of in 2017, constant(at and current as a percentage from sales of exchange moved 11.4% it rates); the previous year 11.1%. to % on revenue % on revenue % on revenue EBITDA underlyingEBITDA Airports EBITDA Capex Motorways Other channels Total revenue Total ($m) ($m) REVENUE BY CHANNEL REVENUE ($m) Autogrill Group Annual Report 2018 36 17 Holland. in malls outlet and stations railway English channels Other In Delhi). (New India and DaNang), and Ranh (Cam (Oslo, Bodo), Stavanger, Norway and in Vietnam particularly openings, of new contribution the and India and Vietnam in performance to strong rates), thanks channel airport the Revenue in stations. railway and airports both by driven growth, like-for-like 6.8% reflects area this in excellentThe performance year. previous the E 512.3m rates) with compared of exchange 17.8% increase (+14.1% at current an 2018, in E 584.6m totaled Revenue INTERNATIONAL (Em) REVENUE BYGEOGRAPHY Total revenue Rest of the world the of Rest Northern EuropeNorthern

Emirates, Turkey, Russia, India, Indonesia, Malaysia, Vietnam, Australia, New Zealand and China) and Zealand New Australia, Vietnam, Malaysia, Indonesia, Turkey, Arab India, Russia, Emirates, (United countries other and Norway) and Finland Denmark, Sweden, Ireland, Kingdom, United the the in outlets Netherlands, designer and stations railway Amsterdam; in Airport (Schiphol Europe Northern in locations covers area This FY 2017 E 512m (16) FX , revenue growth reflects improved performance at Dutch and and at Dutch performance improved reflects , revenue growth 17 Acquisitions increased by 17.6% by increased (+13.5% exchange at current

Disposals 70 Openings Full year2018 168.9 168.9 415.7 415.7 584.6 584.6 (14) Closings (+6.8%) 33 Full year2017 Like-for-like 372.3 372.3 140.1 140.1 512.3 512.3

FY 2018 E 585m 20.6% 1 % 7 11. 14.1% 2017 Change exchange rates At constant 33.3% 12.4% 17.8% 1. Directors’ Report 37 7. 4% 5.5% 21.1% 17.8% 19.1% 17. 6% At constant At constant At constant exchange rates exchange rates exchange rates Change Change Change 1.8% 3.7% 2017 2017 2017 17.3% 14.1% 18.8% 13.5% 57.8 59.4 5.9% 5 7. 0 30.5 11. 6% 11. 3% 512.3 455.3 Full year 2017 Full year 2017 Full year 2017 60.0 60.4 6.1% 6 7. 8 35.7 10.3% 10.3% 516.9 584.6 Full year 2018 Full year 2018 Full year 2018 region, most capital expenditure towards airport went locations for this for increasing region came E 60m, to by up 7.4% from in 57.8m E 2017, in Oslo, Bergen, Copenhagen, Dubai, Manchester, Istanbul and (Sabiha Cam Gokcen), Ranh in Vietnam. In the International EBITDA (3.7% current at thanks exchange rates) the to growth sales. of Costs incurred for start-up operations in various countries the to new openings and Group, some delayed in Northern Europe and China, a decrease to led in EBITDA as a percentage of from 11.3%revenue, 10.3%. to Underlying EBITDA of E 60.4m compares with E 59.4m the previous showing year, an increase current at (+1.8% 5.5% of and exchange amounting rates) sales of 10.3% to (11.6% in 2017). % on revenue % on revenue % on revenue EBITDA underlyingEBITDA Other channels revenue Total Airports EBITDA Capex (Em) ($m) (Em) REVENUE BY CHANNEL REVENUE Autogrill Group Annual Report 2018 38 2018. March from as consolidation its and CroBag of Le acquisition to the primarily rates), exchange thanks current at rates (+22.0% exchange at constant were 22.5% by up channels” “Other in Sales traffic. in adecline by caused Spain, and France in locations of motorway performance negative the by offset partially was Germany) and Belgium, Switzerland, countries European Other In 2016. in renewals selective following stops rest various from 2017 in departure to the due negative, mainly was closures and openings from balance net The channels. other the in performance good by offset was trend the but traffic, Italy In were 1.6%. by up sales Like-for-like rates). rates (+2.1% exchange exchange at at constant current of 2.4% increase 2017, in an E 1,686m showing with compared E 1,722m, totaled Europe Revenue in EUROPE Total revenue Other European countries countries European Other (Em) REVENUE BYGEOGRAPHY Italy

FY 2017 E 1,686m , like-for-like sales at motorway locations slowed by 0.4%, reflecting weak weak reflecting slowed 0.4%, by locations at motorway sales , like-for-like (5) FX 37 Acquisitions , growth fuelled by the airport channel (especially in in (especially channel airport the by fuelled , growth (15) Disposals 60 Openings Full year2018 1,023.6 1,721.6 698.0 698.0 (66) Closings (+1.6%) 25 Full year2017 Like-for-like 1,029.0 1,029.0 1,686.1 657 0 7. 5 6

FY 2018 E 1,722m -0.5% 6.2% 2017 2.1% Change exchange rates At constant -0.5% 2.4% 7.1% 1. Directors’ Report 39 2.4% 2.4% 3.3% -1.5% 12.2% -17.3% 22.5% At constant At constant At constant 23.4m). E 23.4m). exchange rates exchange rates exchange rates Change Change Change 2.1% 1.9% 2017 2017 2017 2.5% -1.7% 11.9 % -17. 7 % 22.0% 95.4 6.6% 5.7% 111.6 6.4% 108.7 228.6 245.5 1,211.9 1,686.1 1,686.1 Full year 2017 Full year 2017 Full year 2017 108.7m in 2017), decreasing by 17.3% at at decreasingE 108.7m in by 17.3% 2017), 89.5 5.2% 6.6% 6.2% 113.8 106.8 251.7 278.9 1,721.6 1,721.6 1,191.0 Full year 2018 Full year 2018 Full year 2018 in Europe came E 89.5m to ( Capital expenditure primarily went towards rest stops in Italy and France and airports in Switzerland (Zurich), Spain (Barcelona and Gran Canaria), and Greece (Athens). EBITDA constant exchange rates (-17.7% at current at mainly due exchange rates), theconstant to costs exchange of (-17.7% rates the early retirement and efficiency plan in implemented Italy in March ( 2018 Underlying EBITDA of E 113.8m compares with an E 111.6mfor increase of in 2017, constant at as2.4% a percentage sales of exchange was it roughly rates); (+1.9% unchanged 6.6%. at % on revenue % on revenue % on revenue Motorways EBITDA Capex Airports Other channels (Em) ($m) (Em) REVENUE BY CHANNEL REVENUE EBITDA underlyingEBITDA Total revenue Total Autogrill Group Annual Report 2018 40 1. Directors’ Report 41 18 OUTLOOK

This section includes forecasts and estimates that reflect management’s current thinking (forward-lookingespecially as regards statements), future performance, capital expenditure, cash and flow, changes in the financial structure.forward-looking By nature, statements have an element of risk and uncertainty because they dependevents. on Actual the occurrence results may of future differ, even significantly, as a result of various factors competition the how such concessions; as travel new for bids and trends renewals in contract the concession countries of outcome the served; channels and develops; the trend in exchange rates against the euro, especially of the US dollar and British pound; the trend in interestrates on those currencies; future demand; the price of oil and food raw materials; general macroeconomic conditions;geopolitical factors and regulatory changes in the countries served; and trends other travel with changescorrelate volumes in businessbusiness conditions. The Group’s

18 SUBSEQUENT EVENTS Since 31 December occurred 2018, have events no that entailed would have an adjustment the to figures reported or required additional disclosures. Performance in is in early line 2019 with is forecasts; growing revenue strongly in North America and International and is in stable Europe. the In Autogrill 2019 Group will its three-year complete plan, growth, based on revenue structural efficiency, and improved profitability, as as well acquisitions in strategic geographical areas and the streamlining of non-core operations. 1.4 Autogrill Group Annual Report 2018 42 1.5 Consolidated non-financial statement CONSOLIDATED 1.5 NON-FINANCIAL STATEMENT PURSUANT TO ARTS. 3 AND 4 OF LEGISLATIVE DECREE 254/2016

CONTENTS

1.5.1 INTRODUCTION Required disclosures and where to find them Socio-environmental policies and guidelines of the Autogrill Group

1.5.2 A-COMPANY: THE AUTOGRILL GROUP Creating and distributing economic value Governance and compliance Anti-corruption Sustainability for the Autogrill Group

1.5.3 PEOPLE: THE PEOPLE OF THE AUTOGRILL GROUP Human resource development and appraisal Diversity and equal opportunity Remuneration Labor relations Occupational health and safety Protection of human rights Community development and engagement

1.5.4 PLANET: ENVIRONMENTAL PROTECTION Energy and emissions management Waste management Food waste

1.5.5 PRODUCT: PRODUCT QUALITY AND SAFETY AND FOCUS ON THE CUSTOMER Focus on the customer Healthy, balanced menus Services: quality and accessibility Product quality and safety Product labeling and marketing Responsible supply chain management

1.5.6 AUTOGRILL GROUP SOCIAL AND ENVIRONMENTAL DATA

1.5.7 PREPARATION CRITERIA 1.5.8 RECONCILIATION OF GRIS/MATERIAL TOPICS 1.5.9 GRI CONTENT INDEX 1.5.10 INDEPENDENT AUDITORS’ REPORT

43 Autogrill Group Annual Report 2018 44 disclosures. those provide that documents corporate the with material) as (where identified Decree the by required disclosures the table reconciles following The • • • In particular: therein. contained is information the if Report) Ownership and Governance Corporate the and Statements Financial and Report law Annual Group (the the with compliance in up drawn documents corporate referencing other by sometimes “Decree”), 254/2016 Decree (the Legislative by required disclosures the provides NFS The engagement. stakeholder model and management sustainability the on chapters by introduced is NFS The waste. and emissions of energy, management covers the and environment the for protecting initiatives Planet: Autogrill of services. quality and accessibility, management, chain supply marketing, and labelling safety, product and It quality covers product experience. content consumer add and to the value that products high-quality safe, offering Product: Autogrill opportunity. equal diversity, and relations, union safety, labour and health occupational development training, and resource It covers employee human relations, community. local the and customers to service quality to provide aposition in team its put that initiatives and policies People: Autogrill practices. competitive and measures, anti-corruption processes, of decision-making transparency and effectiveness A-Company: to business. its material as identified areas sustainability four following to the according structured is statement (NFS) non-financial Group’s model, the Autogrill business the reflect that order disclosures toIn provide 1.5.1 INTRODUCTION reported in the sections below. sections the in reported are indicators performance environmental and social and Group policies management risk “Group performance”; Group” and Autogrill “The sections the in Report, Directors’ the presented in is liability model corporate on organizational and management the Directors’ Report under “Financial and non-financial risk management”; risk non-financial and “Financial under Report Directors’ the “A-Company” dimension covers the creation of economic value, the the value, of economic creation covers the “A-Company” dimension the the “A-Planet” the Group’s centered is the on dimension and policies the “A-People” the Group’s the concerns dimension employee care the “A-Product” dimension describes the Group’s the “A-Product” the describes to dimension commitment , including with regard to non-financial risks, is described in the the in described is risks, to non-financial regard with , including 1.5 Consolidated non-financial statement 45 pp. 9-42 13-14 Sections 6-10, 4, 2, Policies and guidelines of the Autogrill Group Policies and guidelines of the Autogrill Group corruption Preventing People: the people of the Autogrill Group protection environmental Planet: Product: product quality and safety pp. 95-102 People: the people of the Autogrill Group People: Health and safety in the workplace Planet: environmental protection environmental Planet: Product: product quality and safety and customer the on focus Product: responsible supply chain management People: community. Development and engagement People: protection of human rights Product: Responsible supply chain management Preventing corruption Preventing 2018 documents containing the disclosures 2018 documents DR CGR NFS NFS DR NFS NFS NFS NFS NFS NFS SOCIO-ENVIRONMENTAL POLICIES AND GUIDELINES OF THE AUTOGRILL AUTOGRILL THE OF GUIDELINES AND POLICIES SOCIO-ENVIRONMENTAL GROUP The Autogrill Group has a system socio-environmental of policies and guidelines that start with the Code Ethics of and are detailed in the Corporate Liability Policy and protocols pursuant the Anti-Corruption Law 231/01, to and the Policy, Supply Chain Sustainability Guidelines. in its Corporate The parent company, Liability Policy pursuant Legislative to has established Decree environmental a protocol 231/01, for compliance specifying the principles with be to followed respect the to environment and natural resources. Policies and guidelines are inspired by the principles fairness, of transparency, honesty and integrity that characterize the Group in all does, it in keeping with the main international guidelines and standards on responsible business management. The management and of responsibility everyday operations for are strongly local affairs. This is reflected the at procedural founding observance where level, the of Group’s principles is balanced with the consideration for local setting and full compliance with the the of laws countries served. The policies and guidelines are enforced by the individual business units, which define the necessary processes, procedures, roles, and responsibilities. Environmental policies and procedures are managed by the individual business units in relation the to specificities the of business and local and laws regulations. Disclosures required by Decree 254/2016 Disclosures required Art. 3.1(a) Description of the business management and organizational model, including any corporate liability policies pursuant to Legislative Decree 231/2001 Art. 3.1(b) Description of corporate policies, including due diligence Art. 3.1(b) Description of the main risks generated by or incurred in operations business Art. 3.2(c) Health and safety disclosures Art. 3.2(d) Information on human resource management, including gender parity, adoption of international organization conventions and dialogue with workers’ rights groups Art 3.2(a)(b)(c) Use of distinguishing energy, between renewable and non- renewable sources; water consumption; emissions of greenhouse gases and pollutants; impact on the environment Art. 3.2(d) Information on social aspects Art. 3.2(e) Information on respect for human rights and measures taken to prevent violations and discrimination Art. 3.2(f) Disclosures on countering active and passive corruption 103-2, 103-3 Standard Area covered by Area covered Decree 254/2016 Business management management Business model Policies Risk management People Environment Social Human rights Anti-corruption GRI Key: DR: Directors’ report; CGR: Corporate governance and ownership report; Non-financial NFS: statement. REQUIRED DISCLOSURES AND WHERE FIND TO LEGISLATIVE THEM BY DECREE 254/2016 Autogrill Group Annual Report 2018 46 POLICIES ANDGUIDELINESOFAUTOGRILLGROUP countries. individual of where relevant, and, units business of the procedures and practices the disclose sections 254/2016. following The Decree Legislative by defined issues environmental socio- to the Group’s pertinent documents Autogrill of main the Below asummary is 2019. completed be in will subsidiaries by implementation Its contexts. sociocultural and geographical, legal, different of their account taking while units business among practices good to share and mature, increasingly understanding its topic and to ever render Group is to this more sensitive the policy of the goal The operations. to approach for asustainable guidelines with units business its provides and issues environmental and to social respect with key standards Autogrill’s defines that Policy approved a new Sustainability of Directors Board 2018 the December date. In to up procedures and policies its keeping on priority ahigh sets Group Autogrill The • • • • • to: Promise contents of -summary Policy Sustainability Document: Planet Product, People, • • • • to: Promise products of sale and preparation the for Protocol Liability Ethics, of Code Group Documents: safety and quality Product • • to: Promise Ethics of Code Group Documents: rights human and safety and health People, products made according to the highest ethical and quality standards. quality and ethical highest the to according made products serve to employees and suppliers with working by impact, socio-environmental apositive generate standards; safety food and laws local with accordance in ingredients, quality using and standards specific following by safety and quality product ensure environmental regulations; all with compliance in resources, natural of overconsumption the and waste food reducing and materials, low-impact and recycled using consumption, energy reducing of ways new for search the encourage regard; highest the in legislation rights human holds and cultures local values and appreciates that environment working healthy and asafe foster bargaining; collective and association of freedom to right the protecting and labor, forced or labor child of forms all rejecting abuse, or discrimination of kind any rejecting diversity, valuing by individual every of dignity and worth the respect marketing. and labelling product protection, consumer on regulations and laws with comply fully prepared; are they places the and products the to applicable standards hygiene and health all meeting to addition in standard, quality appropriate an of services and products with customers provide markets served; observe rules and regulations applicable to the and services; products quality providing by customers satisfy − − − − on: based behaviours and environment aworking promote safety; and health employee to conducive are that create and manage workplace environments − − − − providing thorough information. and responsibilities and roles defining spirit; inventive the valuing kinds; all of abuse and discrimination preventing as an individual; person every of dignity the process; selection and recruitment the with starting respect, • • • to: Promise Documents: Policy Group Anti-corruption Anti-corruption chain Supply • • • • chain: supply entire the have to Promise Guidelines Sustainability Chain Supply Group Autogrill Documents: (“passive bribery”). favour other or benefit economic an indirectly, or directly solicit, or accept to someone of, authorize or promise or offer the solicit or accept bribery”); (“active individual aprivate or entity an of name the in acting anyone or official apublic to favour other or benefit economic an indirectly, or pay, or directly give to someone give, pay, authorize or promise, offer, to anyone for rules the against it make and served countries all of laws anti-corruption the observe parties; private and public with dealings in none, bar bribery, of forms all prohibit and reject law; the of confines the within and honesty and transparency fairness, integrity, with times all at act and corporate food safety standards. safety food corporate and government with comply always and quality and safety product to importance utmost the attribute operations; business all in fairness and honesty integrity, of standards highest the ensure environmental performance; improve and impact environmental minimize rights; labor and rights human recognized internationally all promote and support respect, 1.5 Consolidated non-financial statement 47 5.2 billion in economic Consumers Stakeholders Concession grantors, partners brand and suppliers Personnel Lenders and shareholders and Lenders Government Community KEEP IT SIMPLE 797 2017 1,316 3,909 (2,170) (1,079) 71,691 4 7, 8 4 0 13,672 93,822 274,174 212,662 4,811,2 49 3,140,167 5,085,423 1,501,661 5,086,559

BE RELIABLE 13 2018 2,061 3,552 61,119 (9,075) 17, 7 8 0 (1,859) 12,823 12,823 99,840 99,840 258,410 2 2 7, 8 0 7 5,215,052 4,956,642 5,223,912 1,538,525 3,253,606 SET THE PACE BE OPEN Including profit/loss from discontinued operations The remuneration of shareholders consists of profits the share that of 2018 will as proposed be paid as dividends in 2019, to the annual general meeting by the Board of Directors Provision for doubtful accounts Adjustment to the value of financial assets * losses Impairment Financial income Financial Reclassified operating costs Economic value retained the by Group Provisions Statement of economic value (Ek) Economic value created the by Group Revenue and other operating income Economic value distributed personnel of Remuneration Remuneration of lenders and shareholders** Depreciation and amortization Reserves Remuneration of public institutions public of Remuneration Donations SIONATE BE PAS * ** value, and distributed than more E 4.9 billion. Of all value was created, 94% distributed the to internal and external stakeholders, while the remaining was 6% retained within the Group. CREATING AND DISTRIBUTING ECONOMIC VALUE ECONOMIC DISTRIBUTING AND CREATING Creating and distributing economic value is the ability wealth generate to and spread it among the stakeholders. In 2018, the Group created than more E 1.5.2. A-COMPANY: THE AUTOGRILL GROUP GROUP AUTOGRILL THE A-COMPANY: 1.5.2. VISION OUR be recognized bestTo company as in the food world’s & beverage services for travellers, in terms dependability of and focus on the customer. MISSION OUR want their travellers reach to We and destination satisfied more safer, happier, thanks ourto products and services. value theirWe time and strive make to their trip more by addingenjoyable value their to experience, whether by eating,drinking or shopping. VALUES OUR Every person the Group in employs, locations all the has over world, the same objective: their own and their customers’ wellbeing. Passion, openness, rapidity, reliability, and simplicity are the values that guide us every day. Standard 103-2, 103-3, 201-1, 102-43

GRI Autogrill Group Annual Report 2018 year, in addition, location managers and area managers take a “Legal and and a“Legal take managers area and managers location year, addition, in Every etc. gifts, officials, public with to interacting regard with divisions Alliances Development Strategic for the and training specific and Conduct, of Ethical Code Supplier the explain that classes chain supply guidelines, anti-corruption general and 48 19 (FCPA) Act Practices Foreign Corrupt of the principles the with along discussed is of Conduct Code when the induction, include new These hire sessions. focus In of Ethics. Code the on instruction of their part as hired, employees are when they to all systematically given is training anti-corruption countries, other the In to risk. exposure employee’s to the and calibrated position, is job program description, the France, In years. three every employees receive training such headquarters and managers, area managers, location 231/01. Decree All to Legislative Model pursuant Liability Corporate of the context the in given is training Italy, anti-corruption In locations. beverage and food and headquarters at European employees were trained 2,200 of 2018 atotal In regulations. reference laws and to local with topic and ageneral as sessions, information and training anti-corruption own its arranges country Each system.whistleblowing Group’s the using laws, and/or policy anti-corruption of the infringement) (or of suspicion reasonable infringement any report must personnel individual their and enforcement. companies Group effective its to ensure periodically policy over goes the Counsel General Group while of Directors, Board the approved by audit program annual the on based observed, duly are provisions policy the sure to make system control internal the evaluates and reviews independently department Group. Group’s The the in Audit companies enforcementand other by Internal implementation its monitor Counsels Legal local the enforcement policy, while of the proper of monitoring charge in is Counsel General Group served. country every laws in anti-corruption to observe promise its and alike, parties private and officials public with circumstances, all under prohibit corruption and to reject commitment across-the-board its confirms Group the document, this Group. Through the throughout applying of conduct rules and obligations formalizes which of Directors, 2017 Board approved in the by Policy Anti-corruption an has Group the subsidiaries, Italian its and S.p.A. of Autogrill Policy Liability Corporate to the addition In ANTI-CORRUPTION Auditors”). Statutory of Board of the functioning and “Membership 14, Auditors,” Section and Statutory of Board of the 13 “Election Section Committee,” Governance Corporate and 10 Risk “Control, Section Committee,” Resources 8“Human Section Committee,” 7“Nominations Section committees,” 6“Board Section of Directors,” “Board 4 Section see 254/2016 particular, Decree in reference (with to Legislative Report Directors’ the with together of Directors Board the approved by and 1998 February of 24 58 Decree of Legislative bis 123 Art. with accordance in up drawn Report Ownership and Governance Corporate the see matters, governance corporate on information For stakeholders. the all with of trust arelationship create that practices behavioural on and decisions managerial in transparency toward geared is Group The of business. its particularities the and practices best international between balance proper the on based system governance adopted atraditional has Autogrill GOVERNANCE AND COMPLIANCE

North America North A legal corpus with rules to prevent American companies from bribing foreign public officials in order to create or or maintain create to business order in relationships officials public foreign bribing from companies American prevent to rules with corpus A legal , anti-corruption training is spread out over various events and out over spread is various training , anti-corruption 19

GRI GRI Standard Standard 205-2 103-2, 103-3, 103-2, 103-3 1.5 Consolidated non-financial statement 49 , the , new hires, new are brought up speed to on the Code of Compliance” course covering anti-corruption policies and procedures and the whistleblower system. In 2018, headquarters 50 focus attended employees sessions on various anti-corruption topics, in view training a new of program be to launched in 2019. In the International segment Ethics, and there are online courses FCPA positions for be to potential considered corruption risks. During 2,543 the year, training. people received SUSTAINABILITY FOR THE AUTOGRILL GROUP The AutogrillGroup is committed doing to business in a climate dialogue of and openness with all and stakeholders fostering to respect individuals, for their fundamental rights, and the specifics their of local context. Over the years, Autogrill projectshas developed regarding various aspects sustainability, of placing them conceptually within and Operations “Product.” three “Planet,” areas: broad “People,” are defined on a three-year basis within the Afuture Roadmap, considering analyses materialityof and the international context as as well the United Nations Sustainable Goals.Development The Roadmap is part the of Afuture Framework instrument the Group has created define to sustainability-related and topics set priorities them for withinoperational and reporting activities. In this context, the the CSR of role Autogrill department is a shared promote to Group’s philosophy sustainable of and facilitateto engagement. For stakeholder development every identified topic in the Afuture Framework, Autogrill has also named a sustainability implementing responsible for and monitoring leader, the pertinent initiatives. STAKEHOLDER ENGAGEMENT care is its based stakeholders for on the values laid down inThe Group’s the Code of Ethics, which sets guidelines relations with for kind each and stakeholder of the applicable priorities, principles and forms conduct. of Monitoring external dynamics, considering long-term global trends, and listening to stakeholder demands are fundamental activities a business for that values sustainability. The Group therefore ongoingfosters dialogue and sets the conditions lasting for cooperation and partnerships with its stakeholders. 102-40, 102-42, 102-43, 102-44 103-2, 103-3 Standard Standard GRI GRI Autogrill Group Annual Report 2018 50 20 MATERIAL TOPICSOFTHEAUTOGRILLGROUP 254/2016. Decree of Legislative relevant aspects the topicsand (GRI) Initiative Reporting Global of the consideration in Group, including the within issues of relevance sustainability the topicsexpressing of material list a is output The perspective). stakeholders (external the by to given them importance the and perspective) (internal company for the materiality of their of view point the from analyzed topicsare self-assessment survey, amanagement Through activities. outcome of stakeholder engagement the on and of results discussion and analysis the in management’s on participation based active identified topics are Material MATERIALITY ANALYSIS

Autogrill for the environment community the for Autogrill community financial and the Autogrill for shareholders partners and brand grantors concession for Autogrill suppliers for Autogrill consumers for Autogrill employees for Autogrill Stakeholders Business & Governance

A-Product In alphabetical order for each strategic area area strategic each for order alphabetical In A-People A-Planet non-profits and participation in trade events/multi-stakeholder roundtables. events/multi-stakeholder trade in participation and non-profits with meetings engagement; employee and partners with collaboration projects; engagement and Support and conferences. meetings; andSupport engagement projects; participation in one-on-one national and international events company. listed the of management the and Directors of Board the of members non-executive and executive the meet to shareholders the for and shareholders the with interact to isachance S.p.A. Autogrill of meeting general annual The performance. stockmarket its on and results financial and policies governance, operations, Group's history, the on information of awealth contains website Autogrill's consumers. of service the in out day and in day work who people the with contact direct in investors putting and does it what of understanding an fostering for useful very considers Autogrill which visits, on-site of organization the and hubs finance international main the in conferences and roadshows of form the takes that program Relator Investor active an pursues Group the calendar, the on year each listed sessions, performance periodic these to addition In results. periodic its present to and opportunities and risks objectives, Group's strategy, the discuss to analysts financial and investors with regularly meet Top executives conferences. one-on-one events; trade at participation services; and concepts projects, hoc ad of development the for collaboration grantors; concession 500 for newsletter topics; CSR material on grantors concession for survey Quality Assessment and development process for new products/concepts, conferences. quality audits, one-on-one research. market activities, CRM survey, satisfaction customer good?” “Feel Annual line. open portal, intranet Aconnect mailbox, SA8000 problems, reporting for address Email Feedback andengagement Waste management emissions) and efficiency (energy change Climate Supply chain management safety and quality Product Product labelling and marketing services of quality and Accessibility relations employee of Quality Labour union relations appraisal and development resource Human workplace the in safety and Health opportunity equal and Diversity decision-making of transparency and Effectiveness value economic of Creation Competitive practices Anti-corruption 20

Stakeholder engagement GRI Standard 103-1 102-11, 102-47, 1.5 Consolidated non-financial statement 51 PLE OF AUTOGRILL GROUP OF AUTOGRILL PLE 1.5.3 PEOPLE: PEO 1.5.3 Autogrill company that is a “people” offers products and services the to public: the centrality the of human beingis the foundation all of its policies concerning customers, employees, and the community. Passion, openness, reliability, rapidity, and simplicity are the values the Group in promotes the management activities of and people. Human resourcemanagement, based on principles laid down in the Code of Ethics and in accordance with local and laws collective contracts, employment lets the Group install good relationships with their and them help develop skills its employees and abilities so that individuals can grow professionally and share what they The know. human is touch a distinctivefactor in Autogrill’s relations: from employee recruitment the career, throughout Group insists on treating a person’s him with or her integrity and as an individual be to valued all at times. The resulting corporate culture reflects this concern individuals, for they wherever are assigned, and translates into a safe, healthy workplacefree from discrimination. The Group recognizes that valuing a diverse, multicultural is workforce a core trait a of successful business, that one makes the most human of capital the to benefit the of company climate. In everycountry operates, it where Autogrill the welcomes individuality its people of with interest and respect, fostering open, ongoing dialogue and building trust and mutual respect. Autogrill’s to market owes leadership significant international expansion, through which its human capital has only not grown in quantity but also diversified in terms nationalities, of cultures and abilities. 102-43, 102-44, 102-44, 102-43, 103-2, 103-3, 102-8, 405-1 Standard GRI North America 32,030 employees 40% under 30 years old 61% women

World

60,052 employees in the Group 41% under 30 years old 59% women Europe 16,624 employees 21% under 30 years old 63% women

International 11, 398 employees 69% under 30 years old 50% women Autogrill Group Annual Report 2018 10,000 20,000 30,000 10,000 15,000 traffic and seasonal factors. factors. seasonal and traffic in peaks its with business of the characteristics intrinsic due (56%), to the Europe employees in of part-time proportion ahigher is there contracts, full-time versus men (80%) women for (84%). and both for to prevail part-time As continue contracts permanent Europe in while of new openings, stabilization gradual (+19%) to the thanks locations at International contracts permanent in increase an with homogeneous, fairly was types contract different of the year, distribution the this again Once 54 22 21 PART-TIME VS.FULL-TIMEANDEMPLOYEESBYTYPEOFCONTRACT America North in increase a3% with Along countries. various in locations in decrease to anet and agreement” to Italy’s “intergenerational part due in headquarters, and locations retail (-5%) at both slightly workforce declined the Europe in while (+14%) locations pace of new openings, intense due employees to the in at International increase shows asubstantial regions geographical various forComprehensive data the administration. work 3% in remaining the while locations, 4,000 approximately the employed workforce is percent of the at level. management Ninety-seven middle the at especially policies hiring to specific thanks gender ahealthy balance, demonstrating women, are whowork Group people for the thousand 60 more than of the 60% About 5,000

by which both parties can terminate employment at any time (“at-will employment”) (“at-will time any at employment terminate can legislation parties both current to which by according classified are who America, North in workers to apply not does category “Temporary” The The raise in the Group’s organic is also related to the inclusion of Stellar Partners Inc. within the North American region American North the within Inc. Partners Stellar of inclusion the to related also is Group’s organic the in raise The 0 0 North America North 21 , these two trends led to overall growth of 3% for the Group’s for of 3% the growth workforce. led to overall trends two , these Europe 1 1 2018 International Europa 2018 International 1 Europe 1 2017 North America North 22 International 1 1 Europa 2017 Permanent (no.) Permanent Temporary (no.) Full-time (no.) (no.) Part-time International 11 1.5 Consolidated non-financial statement 55 , is also setting up training programs with a view to , in addition the to program Manager-in-Training hired newly for or HUMAN RESOURCE DEVELOPMENT AND APPRAISAL HUMAN DEVELOPMENT RESOURCE TRAINING As the Autogrill forward, Group moves training employee is constantly evolving through plans built development around the person, who takes an active in role professional growth through direct, proactive Training involvement. takes the form of traditional classroom lessons but also an increasing emphasis on online, social and learning. interactive example, for is the trainingAcademy, program around venues at Europe held designed to develop thedesigned abilities by offering develop to employee each of specific learning opportunities according the to professional milestones are reached. There numerous programs, development leadership offered internally through coaching arrangements or in collaboration with institutes the outside as Group, as well induction and training programs hires new for in the form group of orientation and days online courses. In all European countries, food at and beverage employees locations on-the-job receive training in their program Excellence” everyday tasks. In the Italy, “Academy new launched in is 2018 an internal system involving development classroom, online, and on-the-job training the give to knowledge employees and tools they need boost to sales performance. In France, directors and managers development a leadership follow program in collaboration with a business school. In Spain Autogrill has on a embarked projectnew improve to its ability attract to and retain talent, in a partnership with Work. to Place Great In North America promoted managers,newly in the 2018 “Unlocking Engagement” workshop taught workingmanagers create to a favorable environment. how are There two leadership programs: Corporatedevelopment senior directors for Leadership Development and vice and presidents, Operations future Leadership for Development front-line managers. Both these of two-year programs provide instruction in skills, leadership the chance on interdepartmental work to projects, a mentoring system, and the possibility and work to interact with higher management. of levels Sales personnel on-the- receive trainingjob improve to their everyday skill sets. The International area harmonizing and integrating the system across the different countries, without neglecting their specific needs and any requirements imposed by locations and local activitieslaws. The most held widely are induction programs, coaching, performance appraisals, and job-specific technical courses. offerings The new in include 2018 whistle-blowingcourses on the and the GDPR systems. Group’s In China and in Ireland, the offers Group now management courses build to the careers the of most talented staff, while in Denmark and Finland the Nordic Manager Training program is built on the according 70:20:10 model training which of to 70% should be informal and gained through experience, should 20% be in the form coaching of and mentoring, and should10% be formal through structured courses. 102-12, 103-2, 102-12, 103-3, 404-1, 404-2, 404-3 Standard GRI Autogrill Group Annual Report 2018 56 “check-ins” employees quarterly supervisors. and and between assessment performance individual to aleaner thanks improvement, favor of continuous in appraisal annual the does away with that management of performance new concept a is This managers. front-line top and personnel for headquarters area Europe of the countries all implemented was in To “Autogrill Energy” your called system -Boost Be management 2018 anew performance in process, mapping to the addition Group. In outside or the within occurring changes for any prepared be will Autogrill so plans develop and response growth, for further plans action create problem areas, identify and new to objectives set is purpose The future. to long-term medium- the in goals business to need achieve priority Group’s it what will and leadership capacity current the on reflection order in to stimulate launched was capital human of mapping process atwo-year system, development appraisal of the of aEurope-wide part as 2018, In work. seasonal or periods for short hired often are only, they as countries certain in system appraisal formal the in participate employeesinclude general currently who does not percentage That of personnel. store 57% and population headquarters of the covered 87% appraisals whole, performance the On engagement. on emphasis greater a placing and dynamics hiring on particular in focusing strategy, acquisition talent America North In initiative. Competent” “Be the through area International the in formalized also 2018 was in and Europe, in established well is process The skills. managerial role well as as to the specific capacities technical the assessing objectives, of assigned pursuit in applied skills the measures that system appraisal aperformance uses Autogrill growth, professional to fostering aview With APPRAISAL RESOURCE DEVELOPMENT AND HUMAN each new hire. for up draws subsidiary U.S. the that plan training individual the on based estimated is data moment, the At offerings. its closely monitor can company the so courses of supply entire the systematize gather, and would evaluate that platform e-learning an for study afeasibility running is America North countries, different the across shared to be system monitoring to develop continues atraining area International the While headquarters. U.S. the received employees by of of training hours to include possible the also it was 2018, In job by title. specifying without portfolio, brand entire of the program training the recognized 2017 system in the Specifically, system. reporting the improvements by in 2017 explained from to 2018 are changes The level, not reported. is data executive for top which at the especially seminars, conferences and of workshops, form developmentprofessional the takes often heads). headquarters, unit At and (store management directors middle toward geared are most people, of Autogrill’s growth and enhancement for the initiatives training average of to 20.5 an employee. of all per Out amounted hours programs training locations, beverage and at food initiatives education of continuing mostly Consisting of training. man-hours million 1.2 more than provided Group the 2018, In PER CAPITA TRAININGHOURS:NON-HQLOCATIONS Hours Multi-service operator Multi-service service of Heads Managers directors Store Area managers managers Area the Group is working on its its on working is Group the 2018 32.2 18.0 15.3 35.1 31.8 2017 35.9 29.0 .7 7. 2 21.0 17.9 1.5 Consolidated non-financial statement 57 has been a member of Valore D, Italy’s first Italy’s D, has been Valore of a member launched the “Intergenerational Agreement” as part 23 HR department also constantly works create to a working , the Income Extension Plan guarantees that U.S. who employees , all employees have access service, all a toll-free to have telephone employees open Open Line is available in Italy, Spain, France, Switzerland, Belgium, Germany, and Greece. Feasibility studies are underway in the Netherlands and Vietnam

of a pathof forward by endorsed the unions. This is an investment on Autogrill’s part that close retirement to thegives employees guaranteed chance an enjoy to early, pension and builds momentum the through company’s the hiring talented of young In workers. Austria, Autogrill supports assisted partial can employees retirement, older whereby theirreduce hours by 40-60% without losing any benefits or pension rights. In Switzerland, nearing employees pension age also the have opportunity attend to a free retirement preparation seminar. In North America The International environment that attracts talent, and develops through branding employer and initiativesengagement the at local developed In level. 2018, employer-branding a new program was launched throughout the area, including special like events “Compliment are and “Smiling recognized employees “Culinary when and Day,” Day,” Day,” theirrewarded for dedication and outstanding performance. During Autogrill the year, Italia lose their unit to due job closings, overstaffing, or temporary lay-offs will be paid a for period time, of determined on a case-by-case basis according the to employee’s position. 23 In North America they where 24week a can days seven lodge complaints hours a day, or discuss any topic concern.of In the International area, there are submitting dedicated tools for complaints and fostering open dialogue between and management. employees Many initiatives are in a culture promote to place tolerance of and respect. several For years, example, for Autogrill Italia DIVERSITY AND EQUAL OPPORTUNITY EQUAL AND DIVERSITY As policy defined documents in like the the Group’s Code Ethics, of in keeping with the highest standards the of International Labour Organization, respect diversity for and equal opportunity and the all of prevention forms discriminationof are the principles whichto Autogrill is committed every at stage the of relationship: employment recruitment and selection, the salary growth offer, opportunities, and the eventual parting ways. of This commitment is also recognized externally: in Italy Autogrill has had SA 8000 certification since 2009. In an ongoing effort encourage to transparency and a sense individual of and collective responsibility, a platform called “Open Line” serves as an additional two-way channel communicationof between the Group and its staff. This is a direct means drawing of attention Code any to Ethics, of conduct inconsistent with and the also Group’s to highlight behaviour, while excellent ensuring the confidentiality information of and the privacy individuals. of association large of firms dedicated supporting to in roles. women leadership In Belgium, workshop are organized on diversity and working together without prejudice. France equal promotes opportunity between and through men women collective agreements that are reviewed and In updated once a year. Spain, the Management Committee is tasked with enforcing the Equality Plan signed in 2009, which calls for equal treatment and balance, women of men, a healthy work-life and zero discrimination or sexual based on gender orientation. 102-13, 103-2, 103-3,102-16 Standard GRI Autogrill Group Annual Report 2018 58 Autogrill countries. of their typical contracts of the regardless rights, of their protection full and relationship working employees enjoy atransparent All of people. its those with needs its to reconcile solutions best the help find it so can served, countries various the in unions labour the with dialogue aconstructive maintained has Group the years the Over RELATIONSLABOUR States. United the in plan 401K the as such benefits retirement are there countries, some In transportation. public on discounts and events sports, or leave, vouchers parental for cultural insurance, accident disability and insurance, life may include healthcare, and employees custom receive depend benefits local The on etc.). payments, leave, disability paternity and maternity accident insurance, insurance, (health coverage insurance and security and/or benefits social include exclude or that certain laws on depending region, geographical by workers, vary but part-time and for full- and contracts permanent and for temporary same the roughly are Benefits transparency. and clarity employees with treating on insists Group the too, benefits, Regarding countries. various the place in in employment contracts collective laws and local the with accordance in established are wages Entry-level of gender, seniority. terms and in treatment title, equal and fair ensures that system &benefit amerit-based compensation through including form, every in diversity and opportunity order in to foster equal gender equality for empowerment and action taken and followed has policies For Autogrill years, stability. ensure to levels employment and conditions economic studies Autogrill wage, minimum alocal with countries all pay. In of discriminatory avoid risk and the principle opportunity equal the reinforce which component, avariable and afixed through targets, growth and performance to tied likewise are that adjustments include salary policies Remuneration laws. local and employment agreements collective with compliance ensuring and benchmarks external and data market with constantly level), role and working description, (job qualifications and to skills pay according employee to differentiate and retention and of growth objectives its with line in market labor the in competitiveness to ensure designed are policies remuneration Autogrill’s REMUNERATION succeed. sector the and company to help the levels business, leadership roles of the at all in diversity to support aims WLN growth. professional and personal their enhance to leadership skills improved and for networking opportunities womenprovides with Women’s called (WLN) program network Leadership internal an America, North In development. to professional hiring from management, resources of human aspects all covering policies opportunity equal have specific countries Some practices. best international by inspired standards behaviour uniform ensure to area, the throughout distributed to be worked ahandbook on International Autogrill year, the During conduct. discriminatory or unethical any report can where they channels employees have to anonymous access All exchange. cultural and cooperation, respect, mutual on based of Conduct, Code the with consistent aworkplace creating to committed is Group the country, every In principle. management aguiding is area International the In , guaranteeing equal opportunities and respect for diversity for diversity respect and opportunities equal , guaranteeing GRI GRI Standard Standard 401-2 103-2, 103-3, 103-3, 402-1 102-41, 103-2, 1.5 Consolidated non-financial statement 59 82% International 98% Europe 2017 When it needs make When to it 25 States 48% United48% 39% Canada39% North America

24 91% International 97% Europe , the Health and Safety Policy gives all a set principles of employees 2018 States , the management systems occupational for health and safety in included the 48% United48% Of countries where unions exist Countries have their own worker protection policies and regulations. For example, Canada has the Provincial EmploymentStandards Act, in Great Britain the Works Council protects the rights of workers not covered by collective bargaining, andin the United States disputes are resolved by arbitration committees 39% Canada39% North America

protectstheir right freedom to association of and collective bargaining,recognizing the paramount importance these of freedoms,in accordance with national governing laws collective contracts, individual bargaining and freedom association. of This commitment transparency to translates the to management various of forms of contract: from national collective bargaining collective to contracts by company and/ or location, individually to negotiated agreements. organizational changes, Autogrill complies with all provisions and laws of collective contracts by informing the unions and involving them, applicable, where in talks. The minimum notice period in case organizational of changes thus on national depends and local laws, and ranges from weeks. 16 to one Labour relations and talks the follow highest standards transparency of and fair dealing, in strict accordance with the law, and constructive promote dialogue with a view hearing to from workers’ feedback representatives and maintaining a mutually beneficial working environment. 24 25 OCCUPATIONAL HEALTH AND SAFETY HEALTH OCCUPATIONAL The health and safety is a fundamental its workers of standard on which Autogrill maximumplaces emphasis by means measures, preventive of technological progress, training, and day-to-day monitoring. In all the of main countries served, health and safety commissions been set up have and various include positions (depending on local representatives, from executivespolicies), who monitor compliance workers’ to with applicable laws. The commissions review findings on health and safety issues in search theof best solutions the reduce to risk injuries of a minimum. to make sure these To efforts are effective and share insights and initiatives on health and a system safety, is in monitor to the place number and type injuries of in the main countries served by the Group. In Italy Integrated Management System are governed by Legislative Decree as 81/08, amended. Autogrill S.p.A. is also certified the to ethical standard SA8000, meaning that specific conditions health, of safety and ethical conduct in the workplace are guaranteed all to In employees. addition, headquarters and airport locations are certified BS to OHSAS 18001, and Autogrill is the of one first airport operators in the ISO achieve to world 45001. During an the external year, provider certified the “Document Prévention Unique Risques de des Professionnels” in France; this occupational risk policy prevention addresses primary, secondary, and tertiary asprevention as well store layouts, personal and collective kits, prevention e-learning courses, and the provision psychological of care in response distressing to events. In North America These figures reflect the legislation in different countries. and safety procedures for follow to in the workplace and the for identification, andprevention handling any involving of accidents or customers. workers Individual locations also their have own up managers of made Safety and Teams front-line 103-2, 103-3, 403-2 Standard Employees covered by collective bargaining (%) GRI Autogrill Group Annual Report 2018 60 authorities. airport by supervised and regulated highly are that airports inside arrangements concession place under take operations most that fact to the part due relevant, in highly not emerge being did as issue this analysis, materiality the In form. any in exploitation and trafficking human condemns strongly and chain, employees of workers production and of own its employedcoercion the along physical or psychological or abuse of exploitation, forms other all forced and labor to opposed is Autogrill addition, In ILO. the by labor, defined as child support or use does not and organization its throughout of minors exploitation the rejects Autogrill rights. of human laws protection for the supranational and national, local, all employees observing and and partners trading its with satisfaction mutual and trust building by chain, value entire the along and it does everything in culture business aresponsible works to instill Autogrill standards, international highest the embracing and times at all of Ethics Code its Following world. the around does leader business that international an as responsibilities role its and acknowledges employees, Autogrill of own its rights the protecting and to respecting addition In RIGHTS HUMAN OF PROTECTION rate (-3%) rate (-14%). frequency severity and total in showed adecrease 2017 and were with consistent numbers injury workforce, the in increase 5% despite the Group, the year. Throughout previous the with line in rate 0.1, severity the and 25.0 be rate would frequency U.K.), the the and (excluding Ireland basis alike-for-like on area; International of the scope expanded of the light considered 2017 be in since should trend The burns. and of cuts primarily low, is consisting of injuries severity the and America North and area International the Europe, between consistent rates are Injury countries. other extended to the being gradually is and policy formal a become has Netherlands developed the in manual The 2018. in managers several of program outcomes were added MBO to safety the and Health system. management safety and health for the partner external an works with Group the Kingdom United employees check-up the have in all ayear, once amedical example, while for Vietnam, In initiatives. worker other protection and audits, way of courses, by laws and local with accordance in conditions workplace on amanual following by area International the In workplace. promotes asafer accidents and of frequency reduces itself, the which audit procedure the during measures corrective it to take possible makes tool This issues. safety in-store on self-assessments monthly Tool automates Safety Data Mobile that called app 2018 adopted an in locations Various of injuries. causes frequent most the to map audits conduct who personnel, 26 x1,000 worked) hours /total injuries to due lost days of number (total rate: Severity x1,000,000 worked) hours /total deaths) of number +total injuries number ((total rate: Frequency (no.) Workplace injuries Severity rate Severity Frequency rate rate Frequency Injury rate Injury

Injury rates for 2018 do not include Asia-Pacific, Germany, and the Netherlands the and Germany, Asia-Pacific, 2018 for include not rates do Injury 26

America North North 1,122 28.1 , the Group ensures a safe and healthy working environment environment working healthy and asafe ensures Group , the 0.2 2018 Europe 25.0 555 0.5 International 22.9 291 0.1 1,968 26.3 Total 0.2 America North North 1,134 .8 7. 2 0.1 Europe 26.4 592 0.6 2017 International GRI Standard 414-1 103-2, 103-3, 25.1 162 0.1 1,888 Total 7.1 2 0.3 1.5 Consolidated non-financial statement 61 4 million (7% direct, 12% indirect in and 81% , the Group is a strong supporter the program, of Blue Made signed an agreement with support to Food Slow the , HMSHost Foundation combats povertyin local communities and One aspect that is very the to relevant Group is the evaluation and monitoring of suppliers, governed by the Autogrill Group Supply Chain Sustainability Guidelines, which set the standards a sustainable for supply chain management approach. which offsets the use fresh of by businesses water with projects that ensure access to inwater countries. developing Each country is also engaged in local initiatives according need; to in India, example, has for it financed schooling underprivileged for children. In Indonesia Autogrill support gave local to communities after the recent earthquake in Lombok, and Bali. clean helped and up beaches in its employees Tuban In Vietnam, the Hands” “Helping project was launched in 2018, based on five pillars: community care, sustainability, ecology, vocational training, and Love “I Vietnam” (in support local of In suppliers). all, in the employees International area 2,230 donated hours corporate of volunteering in 2018. “Buona Strada” project“Buona Strada” serving the earthquake-damaged areas central of The Italy. funds raised were through sandwich. Marche” the sale the of The “Abbraccio project accounts the of much for increase in direct and indirect donations. Autogrill also makes annual donations ANT Fondazione to activities for skin prevent to Incancer. Spain, Autogrill continued with work to Fundación SEUR, an organization that collects bottle caps from companies and individuals and sends them recycling for in exchange cash. for The funds are then used provide to medical care children to with serious illnesses or disabilities. The project also makes a positive contribution the to environment by making sure bottle caps are disposed of correctly and recycled. In North America gives a boost the to generations new with training initiatives and development help to them find jobs. In this region the Group with works Donation Food Connection, which serves as the liaison between restaurants/food service companies interested in donating surplus food and local social service that agencies distribute people to in it need. About locations 115 airports, at rest stops and malls take part in the program, working with associations 100 over that than more received 3 million portions food. of Finally, the Group supports the urban farming educational and training initiatives of the Windy Harvest Farm Chicago. of Youth In the International area COMMUNITY DEVELOPMENT AND ENGAGEMENT ENGAGEMENT AND DEVELOPMENT COMMUNITY Autogrill believes firmly in respecting and valuing local cultures and protect to works traditions, customs, and environmental and cultural assets, thereby contributing to the economic wellbeing and growth the of communities serves. it its Under concession arrangements, the Group sometimes deals directly with local institutions, and its widespread presence (especially in Italy) often the makes of one it leading in theemployers region. Autogrill is increasingly in involved projects developing consistent with its own business, such as the donation food of and meals non- to profits serving Many its direct the of needy. donations and fundraisers support long-term partnerships with entities in involved healthcare and medical research, childcare, and the fight against hunger and poverty.These are in addition to associations the Group supports thanks from year year, to in part contributions to andfrom customers. employees donations E exceeded In the 2018 Group’s kind). Donations in kind a number to in local of went 2018 and national food banks, mainly in North America. The amount donations of in kind in Europe was affected by the temporary interruption in with work the food bank. In 2018, Autogrill Italia 102-13, 102-43, 102-13, 102-43, 102-44, 201-1 Standard GRI Autogrill Group Annual Report 2018 62 27 temperatures point set changing channel: motorway the in especially countries, several in waste reducing and to monitoring approach amulti-pronged taken has Autogrill subject. the to attentive have increasingly become grantors concession recent years, in although Group’s reduces the This leverage, and contract. of vision concession field of the part often are utilities as details cost and have to does not consumption always Group access the cases these in grantor; concession the by managed are utilities and structures physical the stations, railway and airports many including locations, some At measures. corrective take and patterns consumption to oversee systems latest of generation monitoring the installed it has directly, utilities handles Group where the at new energy, locations hates to and waste Autogrill ENERGY AND EMISSIONS MANAGEMENT Sustainability. Social and &Nutrition, Health impact), (environmental Operations Sourcing, Sustainable in targets and of activities afour-year plan devised it has which through Food Board), (Irish Bia of Bord program sustainability the Green, Origin in participates area Day. International The for Earth organized also are campaigns awareness Various sustainability. to environmental contribution own of their employees importance of the to convince aims that America North place in in aprogram is “Startsomewhere” environment. natural for the care and of sustainability aphilosophy stakeholders in ways of involving imaginative and campaigns awareness internal through of resources use responsible promotes the Autogrill performance, own its to improving addition In efficiency. greater and improvement for areas order in to find partners business and grantors concession with relationships cooperative works to develop Group the virtuous, related services, and energy for responsible procuring where it not directly is locations At chain. food the along economy initiatives circular including of waste, management correct and reduction for the develops and programs supports world. Autogrill of the parts all in regulations laws and environmental with complying strictly while solutions, and concepts energy-efficient innovative, finding and performance environmental improving by to reduce impact its it promotes strategies means this terms, practical In impact. environmental alesser and favor in energy, of materials, clean recycled resources of natural use the and consumption for to reduce helping energy responsibility why it is world, takes which the around institutions and organizations people, involving priority aglobal is environment the that aware fully is Group Autogrill The 1.5.4 PLANET: ENVIRO through targeted energy audits. energy targeted through including efficiency, its improving to constantly aview indexes with consumption of monitoring systematic precise, increasingly to the committed is Group The use. energy increased cause might that breakdowns reporting promptly and abnormalities, to records check for consumption keeping effective, are measures short-term whether to see basis aweekly on consumption analyzing on-site inspections, during

Set point temperatures are the ideal temperatures at which an indoor environment should be kept be should environment indoor an which at temperatures ideal the are temperatures point Set

27 , preventing malfunctions through high-tech alarms, training personnel personnel training alarms, high-tech through malfunctions , preventing NMENTAL PROTECTION 103-2. 103-3 GRI GRI Standard Standard 302-1 103-2, 103-3, 1.5 Consolidated non-financial statement 63 28 Direct energy consumption (GJ) Indirect energy consumption (GJ) is very mindful of North America 2017 , Italy accounts around for 65% electricity of 1 Europe , too, the Group monitors consumption through external audits and consumption mainly refers electricity, to used interior for comfort 30 use consists the of primary consumption diesel of and gasoline for 29

in particular, Autogrill energy a new has developed saving plan that on works Figures for direct and indirect energy consumption refer mainly to motorway locations where utilities are managedby the Group. Data directly is not available for North American airports and malls and for some other channels in Europe,explained as in the methodological note Direct energy is the use of energy sources like natural gas, diesel, and gasoline, which generate emissions directly Indirect energy is purchased externally, like electricity, and generates emissions indirectly North America

(e.g. air(e.g. conditioning), quality maintenance refrigeration), (e.g. and cooking and preparing customers. foods for In Europe consumption, as a direct consequence its size of other to relative European operations. In some countries, including the Italy, use electric of and ovens induction tops stove has shifted consumption toward indirect energy from and direct away sources like natural gas. energy With consumption respect in 2017, to Italy was stable, mirroring the overall trend in Europe. In Italy two main monitoring levers: and managing the electricity consumption food of & beverage locations, andraising awareness about the rational use Technical energy. of improveinvestments to the made were control and monitoring systems, while the awareness campaign took all the at form employees an of Italian for game” “energy locations designed encourage to virtuous limit behavior and careless reduce waste. To consumption locations at be to opened in thefuture, an Energy Book was printed with guidelines the for design, construction,and management energy-efficient, more of environmentally sensitive locations. In North America has also installed its own monitoring systems can so it construct a benchmark of electricity use strategies consumption. and develop lower to Consistent with Group best practices, the International area energy efficiency: low-impact technologies favors it and appliances, incentivizes the use eco-friendly of materials (paints, tiles, and enamel coatings), and encourages sustainable adopt to employees conduct. 28 29 30 Direct energy GROUP ENERGY CONSUMPTION BY INDUSTRIAL AREA (EUROPE AND NORTH AMERICA) GROUP ENERGY CONSUMPTION BY INDUSTRIAL company and vehicles, the consumption natural of the gas for heating systems in various countries. In 2018, the figures Europe for a slight show decrease in consumption associated with the car fleet and the use example, diesel. for of Italy, which accounts roughly for total of 50% consumption, is the area Autogrill where is focused on the installation pumps heat of rather than boilers energy reduce to in order consumption, boost efficiency, and protect the environment. Indirect energy 2018 1 1 Europe 0 200,000 800,000 600,000 400,000 1,000,000 Autogrill Group Annual Report 2018 Construction for Retail. Construction New LEED® on chiefly focused it recent has years In certifications. important obtain to chance the is environment for the care of Autogrill’s consequence natural One CERTIFICATIONS ENVIRONMENTAL cars. for diesel company and gasoline and for heating, oil fuel electricity, of locations: functioning everyday the from comes and consumption Group’s of the fraction total power). asmall is This of electric mostly GJ, (90,462 70% about from data consumption energy indirect and cars) for company gasoline and diesel, gas, (25,613 area GJ of natural this in locations of the 30% about from collected was data consumption energy Direct consumption. energy indirect and direct their area International the in countries Group, some improvements the by to ongoing thanks 2018, In next). to the one year from (unchanged for lighting used only is 2017), electricity while 64 In globe. the around policies its by Group’sThe illustrated is ethos management waste of waste. disposing and of collecting care takes that operator infrastructure the always it almost is airports, and stations, railway malls, At collectors. private and service public the using directly, disposal and collection waste of care takes Autogrill motorways, On system. recycling and collection the including of each location, characteristics the laws and local on based produced, ofvolume waste the for monitoring program Group’sThe have acountry-by-country units business practices. sound to environmentally commitment of Autogrill’s aspect fundamental a is phases to each approach of these right The tableware. leftovers disposable or be might there served, are customers once and packaging, and of scraps disposal the requires preparation service: and preparation food Waste during produced is WASTE MANAGEMENT A1. rating energy obtained has Italy in location Sud Adda the that also Note In ISO 14064 (Greenhouse gases) 14064 (Greenhouse ISO Energy Star 24 -title Standard Energy California Iand -level Code Building Green California RT 2012 Building) Consumption (Low Environmental) Quality (High HQE EMAS 2015 ISO14001: 2015 50001: ISO Silver LEED® Gold LEED® Certification North America North most of the energy consumed is natural gas for heating (down 9% since (down since 9% for gas heating natural is consumed energy of the most were able to set up an information gathering system regarding regarding system gathering were information able an up to set Italy – Autogrill S.p.A.: Rozzano headquarters and Sebino and headquarters Rozzano S.p.A.: –Autogrill Italy locations at –Equipment USA Airport International Angeles Los at locations –HMSHost: USA N&S, Granier Drôme la de Porte d’Arbres, Villeroy, Wancourt, Jardin Miramas, Paris, Lochères, Bois Chartres Gasville, Chartres Beauce, de Plaines Perche, du Manoirs Ambrussum, France: Côté –Autogrill France Ambrussum Canaver, France: Côté –Autogrill France Sud Est, Brianza Villoresi HQ, S.p.A.: –Autogrill Italy locations at Caselle Airport in Turin, Nuova Sidap for and Sud Est, Brianza Villoresi HQ, S.p.A.: –Autogrill Italy Est Villoresi S.p.A.: –Autogrill Italy Plaza Travel House Delaware –HMSHost: USA 16 stops rest –HMSHost: Canada HQ Bethesda –HMSHost: USA stops 4rest –HMSHost: Canada Est Villoresi S.p.A.: –Autogrill Italy Applies to: GRI Standard 306-2 103-2, 103-3, 1.5 Consolidated non-financial statement 65 ” applies an ecodesign philosophy by Wascoffee , Autogrill with works Coca-Cola collect to plastic , every Starbucks location is required a weekly to budget for keep to rest stops, example, for some sandwiches are price a reduced at sold night at Europe, example, for an increasing number locations of separate frying the oil (for production biodiesel of and green energy), plastic, customers and and have paper, separate plastic and glass bottles possible. are There wherever numerous initiatives to thereduce quantity waste: of in Slovenia, the Group has awareness programs for that decreaseemployees help the amount packaging of that will up being end discarded. At rest stops in Switzerland, the Groupwith works external providers to collect different kinds waste, of and the packaging used food takeaway is made for from recycled materials. locations French introduced have “disposables,” recyclable banned plastic bags, and installed machines. automatic water In Italy in the last quarter the the of groundwork year, was project laid a new — for launched in increase to — early 2019 recycling on the motorways. A circular project economy called “ making furnishings recycled of coffee out grounds. participant A major in the project is the Politecnico di Milano, which conducted a life assessment cycle the for use coffee of grounds as an innovative material, including the for purpose formulating of a plan Bistrot at anddevelopment Puro Gusto locations on a national and international scale. In all locations operated by the International area Schiphol at Airport in Amsterdam, most the of packaging utensils is recyclable; 100% are biodegradable, and the Ecolabel napkins are from made recycled fibers 100% and distributed through waste-reducing dispensers. The objective is take to a circular approach economy and collect and plastic more recycle (PET) bottles and coffee cups the at airport, so the resulting best practices can be shared with other International locations. In the other countries, too, the Group is committed reducing to waste: in India, plastic bags, cutlery, and will plates be gradually with replaced from made items wood, paper, or corn starch; in Australia, Cairns at Airport in Queensland, the “Bring your Own” campaign encourages bring to travelers a cup from home, while straws, “BioCups” for coffee, and bags are compostable of made now materials. In the United Kingdom, a partnership with Starbucks has customers an pay extra every 5 cents for paper cup used, and the an to is money donated environmental protection group. At various other airports in Northern Europe bottles and them recycle into chairs and T-shirts (80% recycled PET and cotton) 20% worn by staffers certain at locations. FOOD WASTE Autogrill’s internal management systems, and refined developed the over years thanks experienceto and technology, allow calculate to it with margin low a relatively error of the number people of that the location of each day on each should welcome to be ready Thisyear. food waste reduces and overproduction a minimum, to by calculating as precisely as possible the quantities food of prepare, to while making sure not do items run out. Method and procedures are the first step in reducing waste, including food waste, by managing the production process efficiently. Any food to is leftover donated food banks both in Italy and in North America, end. a discount at or sold day’s at At Italian so as throw to as out little as possible. are There similar initiatives in Switzerland, France, and Germany, a collaboration where with Good the app “Too Go” was to inimplemented 2018. In Switzerland the Group is also producing a manual that describes strategies reducing for food waste. In North America the purchase food of and beverages, the reduce to risk ordering of than more will it use. In addition, this area has a program in that place encourages customers buy to products Autogrill Group Annual Report 2018 66 menu receive item; afree in questionnaire complete who asatisfaction customers China, In satisfaction. customer ways of measuring several has area International The arefund. customer the giving or card, Guest Our aBe offering product, by, the replacing forsituations example, difficult most to the how to here, respond employees relations; learn of customer key component another is management Complaint media. social on analysis sentiment through and agency Response Global the with apartnership through tracked also is satisfaction where customer America, North in launched been also has program The problem to address areas. in step day and every satisfaction feedback it to monitor now of possible customer makes solicitation active the where Europe, in implemented been at 135 has approach locations The improvement. for tips and information with Group the providing locations, &beverage food at experiences their share can where customers platform interactive voice” an uses “Customer called Anew program countries. developed different in understanding to approaches customer diverse the integrate and decisions strategic guide order in to relations, of customer strength of the measure amore accurate provides that “Feel to anew methodology switched good?” survey satisfaction customer the 2018, In stakeholders. other all and of customers satisfaction utmost the pursuing and experience travel food excellence of the the lead to ideas for increasing patterns consumption New horizon. long-term over meet society’s demands the will that services and development products feedback the and customer of innovative encourages Group The CUSTOMER FOCUS THE ON preferences. and needs dietary meet different that ingredients nutritious safe, made from recipes and menus, develops Group vein the concepts, this In chain. production and procurement the throughout safety food assuring means also products quality serving For Autogrill, rules. these appreciating and understanding in involves employees its actively and conditions sanitary and hygiene strictest the under prepared to be foods its requires Group The standards. safety food and regulations local all with accordance in ingredients quality using and standards preparation right the following product, finished to the raw materials from day: day after it of what serves, quality and safety the to ensuring committed is Group Autogrill The 1.5.5  bank. food donatedday to aCopenhagen are end of the at the unsold are items that Denmark, in and program, reduction waste food for up a signed has Group the Norway In more. recycling while general in waste less produce and out food, less throw for &beverage, food to technologies implement green partners trading all encourages that Scheme Recognition Management Environmental have years now led to the previous in launched initiatives the Malaysia, In waste. area International The sound. perfectly otherwise are but imperfections may have esthetic that AND FOCUS CUSTOMER ONTHE PRODUCT: PRODUCT QUALITY AND SAFETY is working on several projects to monitor and limit food food limit and to monitor projects several on working is GRI

103-3 102-44, 103-2, Standard 102-43, 1.5 Consolidated non-financial statement 67 only uses , too, Autogrill is constantly improving its offerings for , since 2017 the “Eat Well, Travel Further” Travel the, since Well, “Eat program 2017 has offered a , in March the 2016 than more 2,000 airport and motorway countries served, there are many different options vegan and for HEALTHY, BALANCED MENUS HEALTHY, Qataran online comments form was launched in 2018; in Indonesia the Group analyzes the social media response; in the United Kingdom is collected feedback through the “Hospitality questionnaire; Gem” and Schiphol at Airport in Amsterdam, satisfaction is monitored through the use mystery of shoppers. shell eggs and egg mixes sourced, a minimum, at from cage-free hens. was the It of one first companies in the industry promise to use to not eggs from battery-grown hens, which in the 2009 it won Good Egg award from Compassion Farming, in World the largest international farm animal welfare organization. In North America locations in the United States committed using to only cage-free eggs by 2025. For range ready-to-eat healthy, of lunch boxes, drinks, and snacks that satisfy specific nutritional and dietary needs. These make items three promises: 500 calories or less per serving, artificial no and fats or high hydrogenated no colors/flavors/sweeteners, fructose corn syrup. In North America the Group also the extended “Fresh Attractions” program, easy-to-carry an healthy, of extensive menu like items sandwiches, wraps, and salads. In the International area people with special dietary needs and has expanded its range gluten-free, of high protein, lactose-free, and halal in items keeping with religious and cultural needs, habits, and customs. In Indonesia, example, for two halal-certified locations were opened during and the in year, the U.K., animal-free options been expanded have in response the to growing numbers vegan of and vegetarian customers. ANIMAL WELFARE The Group acknowledges its responsibility animal promote to welfare element as a key in ensuring the safety and quality its menus. of Carefully considering its different markets and their cultures, Autogrill is committed sustainable, to responsible purchasing that protects animal welfare in accordance with laws, regulations, and international best practices. its directlyFor managed locations and proprietarybrands, Autogrill Italia Offering quality also menus means demanding and ensuring food safety along the entire production chain, from farm The table. Autogrill to concepts, Group develops menus, and recipes from made safe, nutritious ingredients that a variety meet of dietary indicate do that consumers needs and Trends preferences. around the world are showing a growing balanced healthy, for lifestyles, preference starting with what they eat. Autogrill interprets needs can so it travelers’ quickly respond the to complexity these of changes and translate them into innovative menus. In all European vegetarian diners and low-calorie those a healthy, who prefer lifestyle. At Italian locations, the Agile new project aims source to simple, genuine ingredients and create balanced meals by endorsed nutritionists and popular scientists; the collaboration with Italia Food Slow also falls under thisumbrella. In the other European countries, external partnerships the for been supply developed of have quality gluten-free and organic foods. Many options are available throughout the thoseGroup for who choose a vegan diet, and halal and gluten-free products are now marked with their own sticker. In the United States

103-2, 103-3 Standard GRI Autogrill Group Annual Report 2018 68 America North In standards. sanitary and hygiene all with compliance out on-site to ensure carried procedures coordinated of centrally of aset consisting countries, various the in used system management the within falling program aself-screening is controls and assessments to these addition In audits. where necessary, and, checks spot gathering, information indirect or direct way by of questionnaires, screened periodically are To end, suppliers that partners. trading its and Group the by shared strongly are that objectives and values on based is and process selection supplier the with begins that system amanagement by guaranteed is served products of the safety and quality The standards. safety food and regulations local all with accordance in ingredients quality using and standards preparation right the following product, finished to the raw materials from day: day after it of what serves, quality and safety the to ensure responsibility aprimary has Autogrill PRODUCT QUALITY SAFETY AND smartphones. their from order, menu, the to see pay directly and customers allows that app an with opened recently was restaurant anew Asian Netherlands the in and 2018, October since basis experimental an on used been has locations for app apayment airport Vietnam, In options. payment facilitating and expanding means also services Improving locations. at most offered services wi-fi the for experience customer best the and payments for electronic level of security highest the Center, to ensure anew system Operation Network the launched also has Autogrill States United the In paying. and ordering for both used are and America, North in strategy digital long-term of the part been have already kiosks For these afew years, better. and faster experience customer the makes and reduces lines which kiosks, digital using to itpre-order possible is Switzerland and Germany in investments, technological to some Thanks Spain. of travelers busloads in for welcoming operators tour with agreements and Germany, in for truckers programs include fidelity Initiatives service. e-invoicing the with customers business and travelers, frequent truckers, for promotions and developed has services behaviors, purchasing on data analyzing after team, (CRM) Management children’s Relationship Customer The play spaces. countries major European the In clientele. of diverse its needs to meet the formulas special and develops to date up and services dedicated to keep services its works hard Group The ACCESSIBILITY AND QUALITY SERVICES: 2025. by locations European all in mixes egg and eggs cage-free only to using therefore committed is Europe Autogrill concepts. proprietary managed directly extended to all gradually be will and countries, Group’s of the most implemented in European partially been has practice The standards. welfare animal highest the guarantees that farm organic azero-impact with struck been has agreement Netherlands the In purchasing. to monitor it uses entity international qualified the by audits undergoes Group the America, North in issues welfare animal other and Europe and , suppliers go through a pre-approval process to test to test process apre-approval go through , suppliers , Autogrill has set up locations with baby rooms and and baby rooms with locations up set has , Autogrill , an , an GRI GRI Standard Standard 103-2, 103-3 416-1 103-2, 103-3, 1.5 Consolidated non-financial statement 69

system system 32 standards, which call strict for 31 guidelines, in a process ongoing of , observance country’s each of local standards is assured by audits individual at locations are in included the MBO , the Group has a quality control and food safety program HACCP: Hazard Analysis and Critical Control Points MBO: Management by Objectives

their HACCP compliance of level with the Group’s 31 PRODUCT LABELINGPRODUCT AND MARKETING Laws on disclosing the ingredients food of products scrupulously are followed in all countries served. In particular, information on allergens is a top priority every at location. In addition local to laws, country each its own develops initiatives for promoting a healthy lifestyle and a balanced diet. In the United States, in accordance with and Food Drug Administration rules, all prepackaged, grab-and-go products are allergens for labeled and their for nutritional and calorie This content. also applies to northern Europe, on top the of allergen information required Every by law. International location detailed keeps pamphlets on allergens, including and gluten dairy, and some products for the information can be viewed directly with a barcode reader. Autogrill strictly complies with the in laws country each regarding alcohol and sales,tobacco and is committed the to responsible consumption these of products. In North America, the ServSafe Alcohol® program trains in the employees correct serving alcoholic of beverages. Marketing U.S. at locations the includes ID” “We message asking all customers identification present to they when purchase alcohol. for store managers;for in2018, 1,300 these of performed audits were in addition to supplier inspections and document checks, product and food analyses, and environmental swabs. In Spain, a procedure during was implemented the the year for handling non-compliance of by area managers, and in Greece, ISO 22000 certification was obtained the for food safety management system. In North America administered based by an on the company, and outside Food Drug Administration CodeFood in the United States and the Canadians Safe for Food Act in Canada. Each location is inspected without notice least twice at and the a year, Quality Assurance department reviews the audits and oversees implementation the of plans improvement proposed by the store managers. is There also an program audit that traces small new suppliers in a database and provides a support tool so they can the meet required quality standards. In the International area procedures drawn up in accordance with HACCP improvement thatimprovement is helping several locations obtain ISO 9001 certification. Facilities bemay subject external to by audit third parties and internal to controls ensuring qualitycompliance with standards. the Group’s All suppliers, in addition signing to the Autogrill Code Conduct, of are selected on thebasis detailed of procedures and checklists. As a brand licensee, the Group itself issubject audits to by brand partners as well as concession grantors. Staff training in food safety standards and HACCP oversight program.processes Training the completes Group’s is organized in accordance with local regulations and be may given internally or in collaboration with external providers; during food the safety year, training programs began to be harmonized so that an integrated approach can and be shared developed throughout the Group. microbiological, and chemical/physical content analyses along the entire supply chain, intervalsat established according a risk to assessment approach. In Italyin particular, the results HACCP of 32 103-2, 103-3 Standard GRI Autogrill Group Annual Report 2018 70 chain management approach. approach. management chain Group’s of the supply principles basic the and sustainable of suppliers evaluation for the standards general defines which Foundation, Italy Network Compact Global 2017, the in from input time with first for were the published Guidelines Sustainability Chain Supply Group Autogrill the reason, For this of products. safety and quality for the also and plane ethical the on important is services and goods of providers with relationships solid building in it takes care The relationship. term of along- sake for the of suppliers suitability the to verify interest Autogrill’s It in is partners. of brand its chains supply the well as as operator international aqualified uses Group the services process for procurement its America, North in basis, same the On intermediaries. specialized from support with sometimes countries, different the in at headquarters working specialists by and units Procurement the by guided often are suppliers with arrangements partnership and processes procurement The cleaning. and maintenance as such services, and goods of technical of providers number asmall also There is countries. different in to contracts enter supply into dimension multinational of its advantage takes Group the for non-perishables, while local, mostly are they foods vendors: beverage for and of food fresh made chiefly is up chain supply Autogrill’s economy.country’s each wherever away as of supporting possible suppliers domestic favouring fairness, contractual and impartiality, integrity, transparency, with therefore acts and values same the share partners where both relationships long-term stable, to create strives Group The expectations. meet customers’ that services and quality excellent of consistently products key to obtaining are suppliers with Relations RESPONSIBLE SUPPLY CHAIN MANAGEMENT models and as encouragement to strive for constant improvement. improvement. for constant to strive encouragement as models and business of successful its proof as obtained it has certifications the views Group The PRINCIPAL CERTIFICATIONS Shop &Establishment/Trade Shop awards sustainability Green Origin Bia Bord Awards Quality Safety Food Irish EIQA Authority) Safety Product Consumer and Food (Netherlands NVWA India) of Authority Standards and Safety (Food FSSAI program Safety Food Diverse Indonesia) Ulama (Majelis MUI from certification Halal 18001:2007 OHSAS BS services) 9001:2015ISO management project technical of (provision services) 9001:2015ISO management project technical of (provision Management Safety Food on 22000 ISO HACCP) on based 10854 (self-screening UNI 9001:2015 Systems ISO Management Quality on Certification India 2017 in 2018) in (obtained retained and Ireland HMSHost 2010) since year (every Ireland HMSHost International) (HMSHost airport Schiphol at Stores International) (HMSHost Hyderabad and Bangalore at stores Airport International) (HMSHost airport Schiphol at stores International), (HMSHost Bali in Stores International) (HMSHost Hyderabad and Bangalore at stores airport Jakarta, in King Burger and Hut (China), Pizza Sumai Majia International), Pizza Hut at Bali airport, stores at Bangalore airport (HMSHost stores -airport S.p.A. Autogrill Italy: S.p.A. Autogrill Italy: EpE Hellas Autogrill Greece: S.p.A. Autogrill Italy: Sidap Nuova and S.p.A. Autogrill Italy: Sidap Nuova and S.p.A. Autogrill Italy: Applies to: GRI Standard 308-1, 414-1 102-9, 102-12, 103-2, 103-3,

1.5 Consolidated non-financial statement 71 made the made Supply Chain Sustainability Guidelines part , suppliers sign the Code Ethics of as part theof European countries and parcel all of contracts, vendor new requiring suppliers observe to the standards that apply throughout the Group. qualification process and must also specific meet socio-environmental criteria. In example,Greece, for suppliers satisfy to have certain prerequisites established by the ISO 22000 system, while in they Italy, are bound the to certification standards SA8000.of is important It that note to especially in countries supplier where quality cannot be audited, supply chain risk is managed by giving priority large to companies that are already certified and subject external to audits. In North America,are required vendors sign to theSupplier Code Conduct of governing the purchase food of and non-alcoholic beverages. This applies suppliers to the Group contracts directly and any to intermediaries that manage it help the procurement process. In 2018, the International area Thanks theto Group Supply Chain Sustainability Guidelines, geographical each region specific of inis involved the development procedures the for management and monitoring its suppliers, of with a view greater to transparency and awareness its of own supply chain. compliance Beyond absolute with local regulations and quality control procedures, the individual countries are integrating their supplier monitoring processes as laid down in the guidelines. In Autogrill Group Annual Report 2018 72 33 EMPLOYEES BYAGE,GENDER,ANDPROFESSIONALCATEGORY 1.5.6  > 50 years years 30-50 years < 30 White collars Women > 50 years 30-50 years 30-50 < 30 years < 30 Women Managers HEADQUARTERS > 50 years years 30-50 Of which: women EMPLOYEES TOTAL (No.) Top managers Top < 30 years < 30 Senior managers > 50 years years 30-50 Women Women years < 30

The 2018 figures for North America include Stellar Partners Inc. Partners Stellar include America North 2018The for figures AND ENVIRONMENTAL DATA AUTOGRILL GROUP’S SOCIAL America 32,030 19,581 North North 604 128 172 218 61% 108 149 112 86 77 54 35 34 48 50 55 38 71 10 74 1 33 - 16,624 10,417 Europe 402 63% 162 651 260 233 121 115 40 47 84 48 39 32 18 19 13 21 2018 8 2 5 - International 11,398 5,699 50% 134 491 731 207 233 237 111 59 47 64 48 24 15 21 16 31 8 9 2 7 - 60,052 35,697 1,986 1,111 Total 468 334 222 234 582 59% 101 173 157 213 316 616 46 33 88 97 85 72

5 - 30,988 America 18,813 North North 202 164 130 578 61% 108 129 111 82 45 43 56 35 50 79 73 39 58 28 11 1 - 7 67 4 17, 10,912 Europe 164 671 62% 417 242 269 120 114 38 52 43 55 82 10 16 21 17 41 2017 7 1 5 - International GRI Standard 102-8, 405-1 9,957 5,205 535 729 103 52% 282 194 318 70 21 45 27 56 25 23 13 74 11 2 3 8 5 - 58,412 34,930 1,978 1,154 200 Total 408 680 296 547 60% 252 199 431 141 176 90 99 69 45 38 72 71 5 - 1.5 Consolidated non-financial statement 73 11 89 65 172 148 758 556 493 289 686 248 Total 906 1,112 1,153 1,818 1,957 1,998 8,767 1,047 2,746 5,650 3,492 17, 6 0 2 46,761 28,551 20,392 56,434 1 8 9 15 15 83 22 48 63 72 574 171 178 148 232 235 255 400 418 106 205 844 1,413 4,165 6,041 7, 6 8 9 9,228 International 3 2017 11 18 23 34 60 361 158 127 394 134 147 165 370 377 537 655 580 1,100 7, 5 4 9 1,328 8,894 3,287 2,856 1,852 Europe 16,796 13,692 - 51 32 65 514 510 140 326 106 258 499 486 116 644 884 N/A 1,163 North 5,676 1,992 1,277 8,640 1,076 2,954 11,0 6 4 15,492 America 30,410 25,380 8 93 66 172 273 962 596 238 536 305 504 846 Total 1,979 3,160 1,031 9,021 1,237 1,872 1,040 6,550 4,082 2,350 17, 4 81 47, 3 9 2 28,760 20,890 58,066 8 2 11 21 15 19 91 70 64 61 80 191 274 168 651 451 536 260 200 481 243 6,746 1,722 4,564 1,121 8,742 10,667 International - 2018 19 91 10 36 20 56 137 178 361 120 322 270 297 517 445 535 533 6,911 2,811 1,376 1,309 8,283 3,027 2 ,118 Europe 15,973 12,749 - 33 The 2018 figures forThe 2018 North America include Stellar Partners Inc. 41 71 66 576 155 501 164 708 356 577 449 245 137 858 N/A North For North America, information on employees in protected categories is not available because of privacy laws. 33 1,333 5,936 2,237 1,402 8,848 11,117 3, 311 1,219 15,913 31,426 25,901 America .) 30-50 years (No LOCATIONS Store managers Store Women < 30 years Women Area managers Area < 30 years years> 50 > 50 years> 50 Vulnerable categories/ employees with disabilities 30-50 years > 50 years> 50 Head of service < 30 years 30-50 years 30-50 years < 30 years Managers years> 50 < 30 years 30-50 years Women years> 50 Multiservice operators Women Women Autogrill Group Annual Report 2018 74 PER CAPITA TRAININGHOURSBYEMPLOYEECATEGORY 35 34 EMPLOYEES BYTYPEOFCONTRACT Of which: women Full time Of which: women Permanent Part time Of which: women Of which: women Total employees ( White collars Men Women managers Top HEADQUARTERS Group (hours) Managers Temporary Of which: women Men Women Men Women Senior managers Men Women No.)

The 2018 figures for North America include Stellar Partners Inc. Partners Stellar include America North 2018The for figures by which both parties can terminate employment at any time (“at-will employment”) (“at-will time any at employment terminate can legislation parties both current to which by according classified are who America, North in workers to apply not does category “Temporary” The 35 America 32,030 32,030 25,410 15,455 19,581 19,581 6,620 North North 4,126 61% n/a n/a 34 2018 10.2 12.9 10.7 15.3 11.2 11.0 8.3 9.3 8.9 9.7 9.7 .3 7. 16,624 13,720 10,417 2,904 Europe 9,228 ,396 9 3 7, 6,646 3,771 8,736 1,681 63% 2018 International 11,398 5,692 5,706 4,276 ,22 7,12 3,003 2017 2,649 5,699 3,050 2,696 24.3 12.4 18.5 22.4 25.3 16.3 50% 21.0 1 4 11. 7 5 17. 8.3 8.4 8.2 60,052 22,276 39,928 13,421 51,442 31,320 20,124 Men Head of service of Head Women Managers Men Women operators Multiservice Men Women Men Group (hours) Women Store managers Men Women Area managers STORES 35,697 4,377 8,610 Total 59% 24,397 30,988 30,988 America 14,706 18,813 18,813 6,591 4,107 North North 61% n/a n/a 15,074 7 67 4 17, 10,912 2,393 Europe 9,878 ,5 9 58 7, 3,869 1,297 ,043 4 0 7, 9,615 62% 2017 International 2018 32.2 18.0 15.3 35.1 31.8 34.3 28.5 35.0 18.4 35.1 .5 7. 2 7 3 17. 7 8 17. 7.1 3 8.8 GRI 4,798 5,847 9,957 5,159 4,110 2,592 2,690 5,205 2,515 2,613 GRI 52%

Standard 404-1 Standard 102-8, 405-1 50,860 20,579 30,943 58,412 7 3 3 8 37, 13,742 21,188 34,930 3,987 ,552 7, 2017 29.0 35.9 21.0 27.7 24.4 30.5 17.9 25.2 35.2 Total 29.4 15.0 60% 18.9 18.9 .7 7. 2 .2 7. 3 1.5 Consolidated non-financial statement 75 81% 91% 91% 16% 14% 87% 35% 85% 43% 90% 15% 84% 38% 89% 90% 2017 81% 14% 17% 79% 79% 79% 47% 80% 40% 80% 81% 15% 42% 79% 79% 2018 Women Men Stores managers Area Store managers Store Women Men Managers Women Men Head of service Women Women Men operators Multiservice Men n.a. n.a. 81% 78% 84% 87% 89% 77% is not included because it refers to a management is because to included not by objectives refers it 78% 82% 88% 2017

n.a. n.a. 84% 88% 88% 90% 90% 90% 86% 89% 90% 2018 Data are calculated as following: number of employees who received a performance review / number of employeesDecember at 31 in countries with a performance review system. Does not include some smaller payrollsCzechsuch as Republic, Austria, the and Slovenia in Europe and China in the International area

The currently available figures training for hours in North America estimated were on the basis the of individual training plan drawn hire. new each up for Also, at headquarters, (especially top managers) professional for often development takes place in the form workshops, of and conferences seminars which are subject not reporting. to The change inper capita training hours and between should 2018 2017 also be viewed in light specific more of data collection and the expanded reporting boundary (in 2018 wasit also the possible include to hours training of by U.S. received headquarters personnel). approach that differs from the performance review programs other in for place Seeemployees. the Remuneration Report further for information. 36 The change in the percentage non-head-office of performance who received employees reviews mainly is due high to turnover and the opening stores, new of especially in countries that only give reviews has once an been working employee six for months. top managersData for EMPLOYEES RECEIVING REGULAR PERFORMANCE REVIEWS EMPLOYEES RECEIVING (%) 36 Standard 404-3

Men managers Senior Headquarters Top managers Women Group Women Men Managers Women Men White collars White Women Men

GRI Autogrill Group Annual Report 2018 76 37 NEW HIRESANDDEPARTURES relation to the total number of employees gender number range. for age each and area, total to the relation in calculated are and outgoing) and rates (incoming Percentages represent turnover 30-50 years 30-50 < 30 years < 30 Women (%) Turnover, incoming > 50 years (%) Turnover, outgoing > 50 years years 30-50 Men years < 30 Men Women years < 30 years 30-50 > 50 years Men Women Departures (no.)Departures > 50 years years 30-50 < 30 years < 30 Men Women New hires (no.) hires New

sake of uniform reporting throughout the Group the throughout reporting uniform of sake the for system collection data the in 2017 improvements to 2018 and between relates Europe in turnover in change The 24,256 America 23,173 14,325 15,057 15,976 17,177 5,486 8,848 5,602 1,477 North North 132% 123% ,711 1, 9,199 72% 76% 77% 47% 20% 48% 73% 23% 71% 74% 12,009 12,556 Europe 4,367 1,009 4,831 6,716 204% 192% ,093 9 0 7, 4,916 5,135 ,421 4 7, 72% 7,116 76% 27% 79% 68% 83% 46% 14% 71% 51% 526 2018 37 International 8,751 ,397 9 3 7, 4,393 4,358 3,785 6,078 1,395 ,204 0 2 7, 3,612 1,181 77% 65% 77% 77% 45% 40% 63% 38% 34% 66% 76% 91% 152 131 43,126 45,016 26,543 28,770 18,473 25,531 31,497 13 4 11,36 1 498 11, 17,595 2,851 129% 2,155 118% 72% 75% Total 47% 47% 25% 72% 72% 19% 76% 74% 22,884 22,715 America 14,057 16,032 16,714 13,831 4,808 8,884 8,827 4,998 1,685 1,362 North North 126% 131% 73% 74% 44% 20% 42% 24% 73% 73% 75% 74% Europe ,306 0 3 7, 8,198 4,092 4,473 2,806 3,290 2,583 3,725 5,027 4,016 138% 1 % 112 42% 47% 50% 57% 37% 28% 10% 17% 26% 41% 365 631 2017 International GRI

6,434 8,203 Standard 401-1 3,240 4,037 5,494 4,166 6,919 3,194 1,194 82% 65% 80% 20% 49% 85% 67% 28% 62% 36% 96% 76% 875 65 90 36,455 39,285 28,660 22,696 16,589 15,368 21,087 25,618 8,456 8,808 2,381 109% 122% 1,817 62% 67% Total 60% 65% 65% 22% 35% 37% 17% 71% 1.5 Consolidated non-financial statement 77 0.2 0.3 0.3 694 Total 27.1 23.1 0.01 0.01 30.2 0.02 1,194 1,888 97 65 0.1 0.1 0.1 162 39.7 16.2 0.03 0.08 0.00 25.1 International 2017 0.7 0.5 374 218 0.6 2 7.9 592 0.02 0.03 0.03 24.3 26.4 Europe 0.1 0.2 411 0.1 723 24.0 0.00 0.00 0.00 30.5 27.8 North 1,134 America 0.2 0.2 0.3 729 Total 29.3 0.04 0.04 26.3 0.04 22.5 1,968 1,239 0.1 0.1 0.1 127 164 0.11 0.16 291 0.21 18.2 28.8 22.9 Number of cases of occupational illness/total hours worked) x 200,000 International 2018 0.5 0.4 38 0.5 183 372 (number of workplace injuries)/total hours worked) x 1,000,000 555 28.1 0.03 0.04 0.04 20.5 25.0 (Number of days lost due to injuries/total hours worked) x 1,000 Europe , where an, where injury reporting system is currently being Likewise implemented. 39 The Group will conduct further analysis considering the significance of contract (non-employee) headquarters Asia-Pacific workers 0.1 0.2

419 0.2 703 30.1 25.4 0.00 0.00 0.00 28.1 North for Germanyfor and the Netherlands, although the reporting system is up and running, it possible extract to is yet not data on absences and hours These countries worked. were from the excluded therefore perimeter in 2018, while Ireland and the United Kingdom (International included. area) On were a like-for-like basis, the International area did the(which include not in Netherlands, 2017 the U.K., Ireland, had and both APAC) a frequency and (25.0) rate a severity in (0.1) line rate with the previous year. The reporting system in North America count not does commuting accidents. As such, thefor sake fair of comparison, commuting from all excluded were injury accidents rates. In any case, commuting there 151 were while in in accidents Europe 2017), (150 the International area reported 22 commuting and accidents 2 traffic deaths, compared with 24 the accidents previous In year. North America the Group is also refining its injury monitoring software will so it report absences caused by injuries, which the at aremoment partly estimated. 38 Frequency rate: Frequency rate: Severity rate:Occupational illness Data is collected from all countries the except for legal new International entity area’s APAC INJURY RATES INJURY 39 1,122 America Standard 403-2 Standard

no.) Workplace injuries injuries Workplace ( Men Women Injury rate (IR) Men Women Women Men Severity rate Occupational Occupational rate illness Women Men GRI Autogrill Group Annual Report 2018 78 41 40 energy Direct excluded reporting. were form previously that area International the in stations railway and airports of some bills utility the to see possible was it locations, at awareness individual raise and information to gather to efforts thanks 2018, Group. In the by directly contracted are where utilities locations, motorway and to headquarters refers mainly consumption energy indirect and direct on Data DONATIONS BYTYPEANDGEOGRAPHICALAREA ENVIRONMENT –ENERGYCONSUMPTIONANDEMISSIONS Emissions From non-renewable sources consumption energy Indirect From renewable sources renewable From Energy from vehicles owned: Indirect emissions Indirect From vehicles owned sources: Energy from non-renewable consumption energy Direct +PoS HQ Direct emissions Direct From non-renewable sources Direct donations Donations Electricity Indirect donations Donations in kind in Donations Total

managed at country level, the Group refers to the market mix associated mix market the to refers Group the level, country at contracts managed suppliers’ energy the since applicable considered not is methodology based” “market the with calculation The has also affected the items “Reclassified operating costs” and “Donations” in the Statement of economic value on page 47 page on value economic of Statement the in “Donations” and costs” operating “Reclassified items the affected also has change The www.autogrill.com. at section Investors the in statement, 2017 the see non-financial previously, published data For restated. been has America North in donations 2017 direct the for system, figure reporting the in improvements to Due Diesel oil Propane Fuel LPG Natural gas Natural Diesel oil ( E ) 41 3,716,946 3,268,177 438,142 America 10,627 North North t CO t MWh GJ MWh l kg l l m GJ t CO t l 3 2 2eq 7 83 58 47, 2 223,255 23,968 Europe 5,560,750 222,677 America 360 7 98 59 57, 3 60,891 1 379 11, 49,512 99,333 2018 49,512 11,379 North North International ------86,936 33,444 15,950 ,542 4 5 7, 3 1,659,503 2018 851,044 135,940 236,323 86,046 ,039 3 0 7, 7 9 298,612 639,128 Europe , 70 7,9 7 , 0 7 7,9 7 8,076 6,385 5,598 1,691 4,051,464 3,284,486 78 499,653 267,326 - Total 1,208,642 7,220,253 335,656 ,039 3 0 7, 7 9 146,937 298,612 358,617 27 82 4 7, 12 639,128 27 2 8 4 7, 12 19,455 7 64 76 17, 5,598 3,970,140 1,691 Total 3,581,185 America 78 381,415

- North North ,541 5 7, 40 6,091,829 348,997 249,682 America 48,322 12,793 61,114 48,322 96,944 12,793 North North 298,174 140,215 155,917 Europe 2,042 ------2017 International 2017 1,816,721 GRI 1,151,972 855,873 150,982 284,798 658,939 ,539 3 5 7, 3 2 88,265 79,330 Europe 79,330 8,934

59,787 6,614 1,717 ,217 7, 36,125 3 511 23, 305-1, 305-2 Standard 302-1, 203 828 151 1,204,870 , ,5 0 55 8, 0 7,9 4,328,101 1,151,972 3,737,253 400,664 334,483 284,798 658,939 149,379 27 52 6 7, 12 171,267 419,582 27 2 5 6 7, 12 21,727 ,717.1 1, 20,010 6,614 Total Total 203 828 1.5 Consolidated non-financial statement 79 7. 8 0.2 8.5 16.5 2017 5,661.9 7, 2 3 5 . 6 6,566.5 19,464.0 - Europe 7. 4 8 9.53 2018 17.01 7, 0 5 7. 6 9,470.9 14,079.5 30,608.1 (t) 42 Landfill Recycled Recycled Incinerator Incinerator Landfill Hazardous waste includes electronic devices, batteries, waste oils, oil filters, absorbent materials,containing and packaging hazardous substances (produced by the oil business)

Hazardous waste Means of disposal Non-hazardous waste (t) consumption data about was available 30% made thefor of locations in this area and indirect energy consumption the of about data 70% locations, for total a GJ for 25,613 of energyof consumed directly (natural gas, diesel, and gasoline company for cars) and 90,462 energy of GJ (mostly electricity) consumed indirectly. The Group will continue buildto awareness and expand the reporting area the to extent such data becomes available. At locations utilities where are in included the is always not rent, it possible know to is consumed; much how these locations, therefore, will continue from be to excluded reporting. This limitation applies mainly airports to and shopping in centers North America. The factors used compute indirect to emissions published were by the Department for Business, Energy & Industrial Strategy with (BEIS) (complete emissions in factors 2015 by country), while direct for emissions, the Group used the document recent more published in 2018. 42 Because the of particularities business, is important it the of Group’s that note to waste disposal data can only locations cover the where Group uses a private waste management firm. picture give complete a more the of reporting To area, in the 2018 Group estimated some figures, mostly in the Italian motorway channel waste for collected by local public operators, on the basis comparable of businesses. The figures the to in same the refer not do reporting table boundary and are directly not therefore comparable. On a like-for-like basis, non-hazardous waste in the Europe area would amount 20,890 to tonnes in 2018. The figures are thus partially estimated locations and include not do in Slovenia, Switzerland, and Spain, all where waste is collected by public entities. International and North American locations are because included not waste management is primarily handled by the infrastructure operators. ENVIRONMENT – WASTE DISPOSAL ENVIRONMENT – WASTE Standard 306-2

GRI Autogrill Group Annual Report 2018 80 railway at malls, —mostly data consumption no precise therefore has and directly utilities does not contract Group where the locations and however, headquarters that year. Note, the during finalized acquisitions and liquidation, in those companies, for except dormant 2018, ended December year 31 for statements the financial Group’s Autogrill consolidated the in basis aline-by-line on consolidated companies of the consists disclosures for non-financial boundary The Report. Annual Group’s for the that as same the is 2018 statement for figures income boundary The segments. Group’s for the results down business breaks and three specified, otherwise unless subsidiaries, wholly-owned its and S.p.A.) (Autogrill company parent statement for includes data the non-financial consolidated 254/2016, the 4 of Decree Art. by required As 2018. ended December year 31 for Group the refer Autogrill to the statement non-financial consolidated the in disclosures quantitative and quali The REPORTING BOUNDARY SDGs). (UN Development Goals Sustainable Nations United the Group’s with the which ways connected in are the actions highlights document Group. The outside the and of developments basis the on within defined methodology to a according and afrequency with reviewed is Materiality Guidelines. Sustainability Chain Supply the and of Ethics, Code Policy, the Sustainability Group the as such procedures and policies by governed are aspects These community. employees the and with relations and of suppliers evaluation and selection the in Group, especially to the important highly still is but not emerge material, did as rights of human issue The statement. this in it not atopic so is addressed impact, environmental significant to have a water consumption not find did analysis materiality the operations, Group’s Given of stakeholders. its decisions the the influence or impact environmental Group’s the and reflect social they relevant were as to be found document, of this 38 page on described analysis amateriality following which, those are discussed issues the standards: GRI the (relevance), in for featured provided law by as and of materiality principle the reflect report this in disclosures non-financial The 82-90. pages content on provided index is GRI the document, the within readers information locate 254/2016. To Decree with help for compliance reference its as standards Autogrill have by chosen and been reporting, world forwidely followed the non-financial in most the are Standards GRI The Community). Gold GRI amember of is the Group (the Initiative Reporting Global 2016 the by in defined option) (Core Standards Reporting Sustainability GRI to the according up drawn been has and annually published be 2019, will March 14 on of Directors Board the approved by statement, This Report. Directors’ of the section management” risk non-financial and “Financial the in described are activities business from arising topicsand these with connection in generated incurred or risks main The of operations. its impact the “Group”), and also how performed, it has (hereinafter does Group Autogrill the of what understanding afull neededextent to ensure topicsto the anti-corruption and rights, human personnel, social, environmental, on disclosures contains “Decree”), also (hereinafter 254/2016, amended, as Decree 4of Legislative 3and Arts. with accordance in prepared “Statement”), also (hereinafter Group Autogrill statement of the non-financial consolidated The REPORTING STANDARDS 1.5.7 CRITERIA DRAFTING GRI Standard 103-3 102-54, 103-2, 102-51, 102-52, 102-48, 102-50, 102-13, 102-46, 102-4, 102-10, 1.5 Consolidated non-financial statement 81 the involvement of all of the involvement units/departments the responsible for material topics inincluded the report and the pertinent disclosures. its Each was responsible for own area and analyze was help to asked and consolidate the data relevant and andcheck validate the information reported. specifically, More the disclosures ITin system management this for and from derive statement the Group’s accounting and from a non-financial reporting collection system(data forms) the for sakeimplemented compliance of with and Decree the 254/2016 GRI Standards. Individual data points then were extracted and run through calculations; specifically where noted, estimates also were used for (see, example, the section on Human and appraisal). resource development Data on economic performance, assets and liabilities was taken from the 2018 consolidated financial statements; approval the of by the statement Board Directors, of called the approve to 2018 financial statements, after being reviewed by the Risk Control and Corporate Governance Committee; issuance in a compliance of the form assessment a limited of by Deloitte & Touche, inspection; publication the of on the statement corporate consultation for website, by all interested stakeholders. stations and airports— are always not in included the reporting on environmental figures. This limitation primarily concerns North America and International. theCompared withGroup has worked with the different 2017, business units to improve and the complete data collection process and has managed expand to the perimeter environmental for data a larger to number locations of in Europe and the International area, using estimates necessary where and as duly noted. Any other boundary limitations are stated within the document. In was it also 2018 possible to theinclude data Stellar of Partners, Inc. but not as its workforce 31 of for December, the socio-environmental data Le of CroBag, whose acquisition was finalized during the year. • • • REPORTING PROCESS REPORTING The preparation consolidated the 2018 of non-financial Autogrill Group’s statement was based on a structured reporting process entailing: • Autogrill Group Annual Report 2018 82 43 1.5.8  Product Planet Area People Governance & Economic

directly associated with GRI Standards, Autogrill reports its management approach management its reports Autogrill Standards, GRI with not services,” of associated quality directly and “Accessibility and decision-making” of transparency and “Effectiveness topics material the For RELATED GRI ASPECTS MATRIX LINKING MATERIAL TOPICS AND services of quality and Accessibility Supply chain management Product labeling and marketing opportunity equal and Diversity Labor union relations decision-making of transparency and Effectiveness Waste management appraisal and development resource Human Competitive practices Energy efficiency and emissions safety and quality Product workplace the in safety and Health Creation of economic value economic of Creation Topic Quality of employee relations employee of Quality Anti-corruption 43 43 Supplier social assessment Supplier environmental assessment, Marketing and product labeling discrimination non opportunity, equal and Diversity Labor/management relations Waste collection education Training and economic compliance behaviour, Socio- Anti-competitive compliance Environmental Energy, Emissions, Customer health and safety safety and health Occupational Economic performance GRI disclosure n.a. Employment n.a. Anti-corruption supply chain Group, Autogrill consumers Group, Autogrill Group Autogrill Autogrill Group Autogrill community consumers, Group, Autogrill Group Autogrill Autogrill Group Autogrill supply chain Group, Autogrill consumers chain, supply Group, Autogrill employees Group Autogrill Autogrill Group Group Autogrill consumers chain, supply Group, Autogrill Group Autogrill Group Autogrill Autogrill Group Group Autogrill Where Applies to: GRI

Standard 103-1 Direct and indirect and Direct Direct Direct Direct Direct and indirect and Direct Direct Direct Direct and indirect and Direct indirect and Direct Direct Direct Direct and indirect and Direct Direct Direct Direct Type ofimpact 1.5 Consolidated non-financial statement 83 Disclosure Name of the organization. Brands, products, and services. headquarters. of Location Number of countries where the organization operates, and the names of countries where it has significant operations that are and/or relevant to the topics covered in the report. Natureof ownership and legal form. locations, geographic including served, Markets sectors, and types of customers and beneficiaries. Scale of the organization. Number of employees by contract and gender. Description of the organization's supply chain. Significant changes to the organization’s size, structure, or supply chain. Whether and how the organization applies the Precautionary Principle or approach. Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes. Memberships of national or international advocacy organizations. decision-maker. senior from Statement Description of impacts, key risks, and opportunities. Values, principles, standards, and norms of behaviour. Governance structure of the organization. List of stakeholder groups engaged by the organization. Percentage of employees covered by collective bargaining agreements. . The table below shows Group shows disclosures below . The table based on UNIVERSAL STANDARDS 1.5.9 GRI CONTENT INDEX CONTENT GRI 1.5.9 non-financialThe Autogrill has Group’s statement been prepared in accordance with the GRI Standards: Core option the GRI Standards published in by the 2016 Global Reporting Initiative, with reference Autogrill’sto materiality analysis and pertaining and 2018. 2017 to Page no. DR, Simplified Group structure, 18. p. DR, The Autogrill Group, 13. p. Centro Direzionale Milanofiori. Palazzo Strada Z, 5, 20089 Rozzano (MI) – Italy. DR, Autogrill around Drafting the world, 14; criteria, p. p. 80 -81. DR, Simplified Group DR, structure, 18; p. Organizational 19. , p. structure March as at 2019 14 DR, Autogrill around DR, Group the world, 14; p. DR,performance Business segments 21; p. 33. p. DR, The DR, Condensed Autogrill Group, 13; p. consolidated income statement DR, Revenue 24; p. p. Reclassified27; consolidated statement of financial position, 30-32, p. DR, Equity 157-158. p. The people Autogrill of the Autogrill Group, 51; p. social andGroup’s environmental data, 72-78. p. Responsible supply chain management, 70. p. DR, Change in scope of consolidation and other corporate Drafting actions pp. criteria, 22-23; p 80-81. DR, Financial and non-financial risk management, pp. Sustainability95-102; for the Autogrill Group 49. p. Human resource development and appraisal, 55; p. Responsible supply chain management, 70. p. Diversity and equal opportunity, Drafting criteria, 57; p. p. 80 -81. shareholders. the Letter to DR, DR, Financial and non-financial risk management, pp. 95-102. Diversity and equal opportunity, Code of Ethics, 57; p. http://www.autogrill.com/it/governance/modello- organizzativo-e-codice-etico. 65. 58, 56, 54, CGR, pp. 21, 49-50. p. engagement, Stakeholder Labour relations, 58. p. 102-54. 102-55 102-54. Standard GRI Standard GRI General 102: Disclosures profile Organizational 102-1 102-2 102-3 102-4 102-5 102-6 102-7 102-8 102-9 102-10 10 2-11 102-12 102-13 Strategy 102-14 102-15 Ethics and integrity 102-16 Governance 102-18 engagement Stakeholder 102-40 102- 41 GRI Autogrill Group Annual Report 2018 84 102-56 102-55 102-54 102-53 102-52 102-51 102-50 102-49 102-48 102-47 102-46 102-45 practice Reporting 102-44 102-43 102-42 GRI Standard Independent Auditors’ Report, pp. 91-93. pp. Report, Auditors’ Independent 83-90. pp. index, content GRI p. 83-90. index, p. 80-81; content criteria, GRI Drafting Tel. (+39) 0248263490. department. IA&CSR p. 80-81. criteria, Drafting 2018 May in issued was NFS . The p. 80-81. criteria, Drafting p. 50. analysis, Materiality 78. p. 72- data, environmental Group’s and social Autogrill p. 50. analysis, Materiality 80-81. pp. criteria, Drafting 189-193. pp. investments, other and companies consolidated of List statements, financial Consolidated p. 51; Group, p. 60. customer, Autogrill the on the Focus of people p. 39; the People: engagement, Stakeholder 61; pp. p. 66. customer, engagement, the and on Focus p. 51; Group, development Autogrill the of Community people the p. People: 49-50; engagement, Stakeholder p. 47; value, economic distributing and Creating Stakeholder engagement, p. 49-50. Page no. External assurance. External index. content GRI has chosen (Core or Comprehensive). organization the option Standards GRI which Specify report. the regarding questions for point Contact (annual/biennial). cycle Reporting (if applicable). report recent most of Date year). calendar or (fiscal period Reporting boundaries. topic and topics material of list the in periods reporting previous from changes Significant restatements. such for reasons the and reports, previous in given information of Restatements content. report defining for process the in identified topics Material boundaries topic and content report the defining for Process financial statements or equivalent documents. consolidated organization’s the in included Entities concerns. and key topics the of each raised that groups stakeholder the of List reporting. its through including responded, has organization the how and engagement stakeholder through raised concerns and Key topics process. preparation report the of part as specifically whether any of the engagement was undertaken of indication an and group, stakeholder by and type engagement, including frequency of engagement by The organization’s approach to stakeholder engage. to whom with stakeholders identifying for Basis Disclosure 1.5 Consolidated non-financial statement 85 Disclosure Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Direct economic value generated and distributed. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Confirmed incidents of corruption corruption of incidents Confirmed and actions taken. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Legal for anti-competitive actions behaviour, anti-trust, and practices. monopoly Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Omission Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Page no. Creating and distributing economic value, 47; p. 61. pp. engagement, and development Community Creating and distributing economic value, 47; p. 61; pp. engagement, and development Community Autogrill social and Group’s environmental data, 72-78. p. Creating and distributing economic Autogrill value, 47; p. social andGroup’s environmental data, 72-78. p. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, pp. 45-46; 48-49. pp. Anti-corruption, Policies and guidelines of the Autogrill Group, pp. 45-46; 48-49. pp. Anti-corruption, In 2018, there were no definitiveIn rulings 2018, against employees concerning active or passive corruption. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Governance and compliance, DR, Financial48; p. and non-financial risk management, 95-102. p. Governance and compliance, DR, Financial48; p. and non-financial risk management, 95-102. p. In 2018, no legal action wasIn taken 2018, against the Group for anti-competitive behaviour, anti- trust, and monopoly issues. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, pp. 45-46; Energy and emissions management, Drafting pp. 62; criteria, pp. 80-81. Policies and guidelines of the Autogrill Group, pp. 45-46; Energy and emissions management, Autogrill pp. 62; social andGroup’s environmental Drafting data, 72-78; p. criteria, pp. 80-81. GRI 200: ECONOMIC SERIES SERIES ECONOMIC 200: GRI 2016 performance Economic Approach Management 103: GRI 103-1 GRI standard 103-2 103-3 GRI 201: Economic Performance Economic 201: GRI 201-1 Anti-corruption 2016 Anti-corruption Approach Management 103: GRI 103-1 103-2 103-3 GRI 205: Anti-corruption Anti-corruption 205: GRI 205-3 Anti-competitive behaviour 2016 behaviour Anti-competitive GRI Management 103: Approach 103-1 103-2 103-3 GRI 206: Anti-competitive behaviour behaviour Anti-competitive 206: GRI 206-1 GRI 300: ENVIRONMENTAL SERIES SERIES ENVIRONMENTAL 300: GRI 2016 Energy GRI Management 103: Approach 103-1 103-2 103-3 ORGANIZATIONAL PROFILE ORGANIZATIONAL Autogrill Group Annual Report 2018 86 GRI 308: Supplier environmental assessment 103-3 103-2 103-1 Approach 103: Management GRI Supplier environmental assessment 2016 307-1 compliance 307:GRI Environmental 103-3 103-2 103-1 Approach 103: Management GRI Environmental compliance 2016 306-2 waste and Effluents 306: GRI 103-3 103-2 103-1 Approach 103: Management GRI 2016 Waste 305-2 305-1 Emissions 305: GRI 103-3 103-2 103-1 Approach 103: Management GRI 2016 Emissions 302-1 Energy 302: GRI standard GRI chain management, p. 70. management, chain supply p. 62; Responsible protection, environmental Planet: chain management, p. 70. management, chain supply p. 62; Responsible protection, environmental Planet: and related GRI aspects, p. 84. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality No significant fines or non-monetary sanctions were received in 2018. in received were sanctions non-monetary or fines significant No Planet: environmental protection, p. 62. p. 45-46; Group, Autogrill the of guidelines and Policies Planet: environmental protection, p. 62. p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality Autogrill Group’s social and environmental data, p. 72-78. data, environmental Group’s and social Autogrill environmental data, p. 72-78; Drafting criteria, p. 80-81. p. criteria, 72-78; data, Drafting environmental Group’s and social 64; pp. Autogrill management, Waste Waste management, pp. 64; Drafting criteria, p. 80-81. criteria, 64; pp. Drafting management, Waste and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality Autogrill Group’s social and environmental data, p. 72-78. data, environmental Group’s and social Autogrill Autogrill Group’s social and environmental data, p. 72-78. data, environmental Group’s and social Autogrill criteria, p. 80-81. criteria, p. 72-78; data, Drafting environmental Group’s and social 62; pp. Autogrill management, emissions and Energy criteria, p. 80-81. criteria, 62; pp. Drafting management, emissions and Energy and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality Group’s social and environmental data, p. 72-78. data, environmental Group’s and social 62; pp. Autogrill management, emissions and Energy Page no. Omission approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation laws and regulations. compliance with environmental sanctions for non- non-monetary of number and fines of Amount approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation and disposal method. disposal and type by waste, of weight Total approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation Energy indirect GHG emissions. GHG indirect Energy Direct GHG emissions emissions GHG Direct approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation organization. the within consumption Energy Disclosure 1.5 Consolidated non-financial statement 87 Disclosure Disclosure Percentage of new suppliers that were screened using criteria. environmental Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. New employee hires and turnover. employee Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant operation. of locations Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Minimum notice periods changes operational regarding and whether the notice periods are specified in collective agreements. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Omission implementation the 2018, In process began for the Autogrill Group Supply Chain Sustainability Guidelines, which set general standards The assessment. supplier for Business Supplier of Code Conduct has been published in North America. Once the implemented are guidelines locally, it will be possible to report the exact number of assessed. suppliers Responsible supply chain management, 70. p. Page no. Page Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, 45-46;p. People: the people of the Autogrill Group, pp. Diversity and51-53; equal opportunity, 57; p. Remuneration, 58. p. Policies and guidelines of the Autogrill Group, 45-46;p. People: the people of the Autogrill Group, Diversity andpp. 51-53; equal opportunity, 57; p. Remuneration, Autogrill social 58; p. and Group’s 72-78. p. data, environmental Autogrill social and Group’s environmental data, 72-78. p. Remuneration, 48. p. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, 45-46;p. People: the people of the Autogrill Group, Labour relations,pp. 51-53; 58. p. Policies and guidelines of the Autogrill Group, 45-46;p. People: the people of the Autogrill Group, Labour relations,pp. 51-53; 58. p. Labour relations, 58. p. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, pp. 45-46; People: the people of the Autogrill Group, pp. Occupational51-53; health and safety, pp. 59. Policies and guidelines of the Autogrill Group, 45-46;p. People: the people of the Autogrill Group, pp. Occupational51-53; health and safety, pp. 59. 308-1 GRI standard GRI 400: SOCIAL SERIES 2016 Employment GRI Management 103: Approach 103-1 103-2 103-3 GRI 401: EmploymentGRI 401: 401-1 401-2 Labour/management relations 2016 relations Labour/management GRI Management 103: Approach 103-1 103-2 103-3 GRI 402: Labour/management relations relations Labour/management 402: GRI 402-1 Health and safety 2016 GRI Management 103: Approach 103-1 103-2 103-3 Autogrill Group Annual Report 2018 88 GRI 406: Non-discrimination 103-3 103-2 103-1 Approach 103: Management GRI Non-discrimination 2016 405-1 opportunity equal and Diversity 405: GRI 103-3 103-2 103-1 Approach 103: Management GRI Diversity and equal 2016 opportunity 404-3 404-2 404-1 Training 404: GRI 103-3 103-2 103-1 Approach 103: Management GRI 2016 education and Training 403-2 safety and health Occupational 403: GRI standard GRI human rights,human p. 60. p. 57; of Protection opportunity, equal 51-53; and Diversity pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies human rights, p. 60. rights, human p. 57; of Protection opportunity, equal 51-53; and Diversity pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality CGR, pp. 108-109. pp. CGR, p. 72-78; data, environmental and social Group Autogrill 51-53; pp. Group, Autogrill the of people the People: 51-53; Diversity and equal opportunity, p. 57. opportunity, equal 51-53; and Diversity pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies 51-53; Diversity and equal opportunity, p. 57. opportunity, equal 51-53; and Diversity pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality p. 72-78. p. data, environmental Group’s and social Autogrill pp. 56. pp. appraisal, and development resource Human 72-78. pp. data, environmental Group’s and p. 56; social Autogrill appraisal, and development resource Human 72-78. 72-78. pp. data, environmental Group’s and 56; social Autogrill pp. appraisal, and development 51-53; resource Human pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies 56. pp. appraisal, and development 51-53; resource Human pp. Group, Autogrill the of people the People: p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality p. 72-78. data, environmental and social Group’s 59; pp. Autogrill safety, and health Occupational Page no. unavailable. iscurrently personnel external for 2020. Data year reporting by information that gather will that asystem on isworking Group The available. not are hours becausereported workable not are rates Absentee Omission approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation and employees. and bodies governance of Diversity approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation reviews. performance regular receiving employees of Percentage programs. assistance transition and skills employee upgrading for Programs category. and gender by employee, per training of hours yearly Average approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation fatalities, by region and gender. and region by fatalities, work-related of number and absenteeism, days, lost diseases, injury, occupational of Rates Disclosure 1.5 Consolidated non-financial statement 89 Disclosure Disclosure Incidents of discrimination and corrective actions taken Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. New suppliers that were screened socialusing criteria. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Percentage of product and service and health which for categories safety impacts are assessed. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Incidents of non-compliance of Incidents marketing concerning communications. Explanation of the material topic and its boundary. The management approach and components. its Evaluation of the management management the of Evaluation approach. Omission In 2018, the implementation implementation the 2018, In process began for the Autogrill Group Supply Chain Sustainability Guidelines, which set general standards The assessment. supplier for Business Supplier of Code Conduct has been published in North America. Once the implemented are guidelines locally, it will be possible to report the exact number of assessed. suppliers In 2018, there were no significantIn incidents 2018, of discrimination. Any complaints received through the dedicated channels were handled promptly by the units in charge. Page no. Page Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Responsible supply chain management, Protection 70; p. of 60. p. human rights, Responsible supply chain management, Protection 70; p. of 60. p. human rights, Responsible supply chain management, 70. p. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, 45-46;p. Product quality and safety, 68. p. Policies and guidelines of the Autogrill Group, pp. 45-46; Product quality and safety, 68. p. Product quality and safety, 68. p. Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Policies and guidelines of the Autogrill Group, pp. 45-46; Product labelling and marketing, 69. p. Policies 45-46; Product labelling and marketing, 69. p. In 2018 there were no incidentsIn 2018 of non-compliance concerning product and service communications. marketing Materiality analysis, Matrix 50; p. linking material topics and related GRI aspects, 82. p. Governance and compliance, DR, Financial 48; p. and non-financial risk management, 87-95 p. Governance and compliance, DR, Financial 48; p. and non-financial risk management, 87-95. p. 406-1 GRI standard Supplier social assessment 2016 assessment social Supplier GRI Management 103: Approach 103-1 103-2 103-3 GRI 414: SupplierGRI social 414: assessment 414 -1 Customer health and safety 2016 GRI Management 103: Approach 103-1 103-2 103-3 GRI 416: CustomerGRI health 416: and safety 416 -1 Marketing and labelling and 2016 Marketing GRI Management 103: Approach 103-1 103-2 103-3 GRI 417: Marketing and labelling and Marketing GRI 417: 417-3 Socioeconomic compliance 2016 Socioeconomic compliance GRI Management 103: Approach 103-1 103-2 103-3 GRI 419: Socioeconomic compliance Socioeconomic compliance 419: GRI Autogrill Group Annual Report 2018 90 103-3 103-2 103-1 Approach 103: Management GRI 2016 of services andAccessibility quality 103-3 103-2 103-1 Approach 103: Management GRI 2016 decision-making of transparency and Effectiveness 419-1 standard GRI labelling and marketing, p. 69. marketing, and labelling p. 68; Product accessibility, and quality Services: p. 45-46; Group, Autogrill the of guidelines and Policies labelling and marketing, p. 69. marketing, and labelling p. 68; Product accessibility, and quality Services: p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality and non-financial risk management, p. 95-102. management, risk non-financial and p. 48; Financial compliance, and Governance p. 45-46; Group, Autogrill the of guidelines and Policies and non-financial risk management, p. 95-102. management, risk non-financial and p. 48; Financial compliance, and Governance p. 45-46; Group, Autogrill the of guidelines and Policies and related GRI aspects, p. 82. aspects, GRI related and topics material linking p. 50; Matrix analysis, Materiality regulations in the social and economic area. area. economic and social the in regulations and laws with non-compliance for sanctions 2018,In non-monetary or fines no were there Page no. Omission approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation approach. Evaluation of the management its components. and approach management The and its boundary. its and topic material the of Explanation economic area. economic and social the in regulations and laws with compliance sanctions for non- non-monetary of number and fines of Amount Disclosure 1.5 Consolidated non-financial statement 91

1.5.10 INDEPENDENT AUDITORS’ REPORT AUDITORS’ INDEPENDENT 1.5.10 Standard 102-56 Standard

GRI Autogrill Group Annual Report 2018 92 1.5 Consolidated non-financial statement 93 Annual Report 2018 Autogrill Group

94 1. Directors’ Report 95 Mitigating factors Mitigating This diversified risk is mitigated by the Group’s presence in terms channels of (airports, motorways and railway stations) and geographical regions. The Group also has a system the for constant monitoring of performance, the market, and consumer behavior so that can it react promptly by updating its and menus service propositions.

FINANCIAL AND NON-FINANCIAL RISK RISK NON-FINANCIAL AND FINANCIAL MANAGEMENT INFORMATION  1.6.1 The Autogrill Group is exposed external to risks and uncertainties arising from general economic conditions or those specific its industry, to from the financial markets, and from frequent changes in legislation, as as well risks to by strategic generated decisions and operating procedures. Enterprise RiskThe Group’s Management department ensures the uniform handling risksof across the different organizational units. Autogrill a model has developed based on the systematic identification, analysis and assessment the of risk areas that hinder may strategic the of achievement goals. evaluate helps the The model Group’s overall exposure risks to and orient the necessary mitigation efforts, so as reduce to volatility with respect business the of to achievement objectives. The main risk areas — strategic, operational and financial — are below. presented This analysis also risks includes relating social to and environmental responsibility that are addressed in greater detail in Section the of Directors’ 1.5 Report, in accordance with Arts. 3 and Legislative 4 of on non-financial Decree 254/2016 reporting. OTHER

the general macroeconomic situation and its contributing trends: consumer confidence, unemployment, and cost-push inflation cannot it when be transferred prices to ; rising oil prices and, in general, the increasing cost of transport; changes in habits, travel influenced in part by growing social and environmental concerns; changes tastes in and travelers’ consumption needs — weather events that affect mobility;

Risks STRATEGIC RISKS BUSINESS AND MARKET CONTEXT operations are influencedThe Group’s by exogenous (hence uncontrollable) factors that affect may traffic flows propensity and travelers’ consume. to These include: • • • • 1.6 Strategic risks Mitigating factors

• legislative or regulatory changes affecting the channels served by the Group or the concession system; • competitive developments in the air traffic industry

Annual Report 2018 and changes in airline policies.

CONCESSION CONTRACTS

Most of the Group’s operations are conducted under long- The Group mitigates these risks by maintaining a term contracts, awarded through competitive bidding, large number of concession contracts, diversified that grant it the right to operate in designated areas of geographically and by channel, so that no single airports, motorways and railway stations. These contracts contract can have a significant impact on earnings are therefore fundamental to the Group for achieving its if it is rescinded or if its conditions or profitability strategic goals. worsen.

Risks in this area concern: In addition, the Group follows an approach aimed • a diminished capacity to renew concession contracts or at building and maintaining a collaborative win new ones; partnership with concession grantors, based in • the possibility that contracts will be less profitable than part on the constant development of innovative expected at the time they were awarded, which would concepts and commercial solutions that help both reduce the return on investment, and possibly even cause parties achieve maximum gain from the losses given that many contracts include an obligation to infrastructure. pay minimum rent regardless of the revenue earned; • the possibility that contracts will be terminated or otherwise cease to be valid for various reasons—some of them beyond the Group’s control—such as cancellation by the authorities or the courts, the loss of permits, licenses or certificates required by national laws, or counterparties’ failure to obtain approval in the case of extraordinary operations; • any clauses that place limits on Autogrill’s management of local operations and prevent it, for example, from adapting menus or commercial practices to customers’ changing needs and preferences; • the option generally given to concession grantors, even without breach of contract by the operator, to change certain conditions unilaterally (sometimes without compensation for the operator) for reasons of public interest or safety.

BRANDS AND CONCEPTS

The Group operates through proprietary brands and The main mitigation factor is the breadth of the concepts as well as many owned by third parties, which Group’s portfolio, which limits its dependence on range from local favorites to international household names. any third-party brand.

The main risks concern: Corporate teams keep menus up-to-date by • the loss of significant partnerships or the inability to developing new concepts, monitoring up-and- strike up new ones that will draw clientele; coming brands, and constantly reviewing • the decreased attractiveness of concepts or brands in partnerships so that the most innovative and the portfolio, both of which could affect the ability to attractive brands the market has to offer are compete for new contracts and therefore attain always in the Group’s portfolio. development goals. This risk is also mitigated by Autogrill’s emphasis on maintaining good relationships with its partners

Autogrill Group and with licensors of the most popular brands.

96 1. Directors’ Report 97 monitoring performance (quality service, of positioning, attractiveness and menus of the of brand and concept portfolio); constantly revising in menus terms products, of concepts and services, while adapting the to technologieslatest and the digital world; reviewing the portfolio partner of brands to offer the most attractive, innovative names available on the market; customerdeveloping initiatives retention and client satisfaction analyses; training periodically workers ensure to high standards of service. customers (satisfaction and product safety); concession grantors (quantitative and qualitative parameters set in out the contract); licensors (observance of operating and standards), including—fordevelopment the largest and most sensitive brands—through brand champions hired centrally support to local teams. The analyzes Group closely trends in its industry and operating channels. Oneits strengths of is a rangebroad proprietary of and third-party brands, which updates it constantly on the basis market of trends. Over time, Autogrill has earned a strong reputation with concession grantors its solidity for and the variety brands of an can it important offer, factor in the tendering and renewal process. The Group mitigates this risk by: • • • • • The Group constantly monitors the quality the of service provides to: it • • • In addition, suitable brand protection measures are taken in Italy if unpleasant experiences are wrongly attributed Autogrill. to The Group’s commitment social to and environmental sustainability is clear from the values espoused in its Code Ethics. of On environmental issues in particular, to works it responsiblepromote behavior in the conviction Mitigating factors Mitigating making the brand less attractive customers; to harming relationships with grantors and licensors; threatening contract renewals. Strategic risks Strategic REPUTATION from stakeholders thisThe key point view of are customers, concession grantors and licensors. Reputation is a significant factor grantors when award to or decide concessions.renew Reputation damage entails the risk of: • • • The causes primarily stem from the perceived deterioration customer of service, an inability satisfy to contractual commitments with grantors and licensors, and an inability the let to business in evolve model response expectations stakeholders’ to social of and environmental sustainability. Loss reputation of can also indirect have causes beyond Autogrill’s control. COMPETITION The food and beverage industry is growing because of macrotrends like increased mobility and dining outside the home, which make attractive may it both to long- standing operators in neighboring industries and to smallernewer, competitors. The growing local demand for as opposed international to brands has also widened the playing field when concession contracts opening are tendered, opportunities small,for usually monobrand operators and requiring a diversifiedmore approach biddingto along with revised economy-of-scale models. These factors increase competition, both real and potential, and could therefore growth profitability. and/or the Group’s decelerate INNOVATION Consumer tastes are evolving an at increasing pace, and while the Group has teams focused on innovation, there is a risk that they will misinterpret a trend or fail to a changeimplement in time. The result could be a temporary decline in customer satisfaction, leading a to decrease in sales that is correctable the when Group revises its offerings. Strategic risks Mitigating factors

For operations involving the sale of third-party brands that protecting our environment is a global priority under license or commercial partnerships (a model used for people, businesses and institutions all over the widely in emerging markets), any reputation damage world.

Annual Report 2018 suffered by the licensor or partner may expose Autogrill to a potential loss of business due to factors beyond its control. To protect its web reputation, Autogrill has implemented specific policies designed to regulate The widespread and ever growing use of online channels interaction with the web community and to govern (websites, social media, etc.) is a powerful crisis management procedures. communications tool because large numbers of people can be reached very quickly, but it also means that false or defamatory news is magnified and may create crisis situations requiring specialized intervention.

DEVELOPMENT AND PARTNERSHIPS

The Group operates in various markets through The Group pursues and favors contracts that leave partnerships with local operators that in some cases it in financial control of operations and require their active participation in store management. commercial aspects. Working with local partners is a long-standing practice in North America and is also a way of expanding into In any case, Autogrill is entitled by contract to emerging markets. There is a risk that local partners will perform audits ensuring compliance with service fail to meet their contractual obligations in terms of and quality standards. planned investments and/or the operating standards needed to ensure satisfactory quality and service, which could affect the Group’s profitability and reputation and its commitments to concession grantors.

COUNTRY RISK

Autogrill could potentially be affected by political or To mitigate this risk, the Group monitors the social instability or the establishment/enforcement of geopolitical situation in the countries served. Its trade restrictions. operations are not concentrated in any one country with an above-average risk of instability.

HUMAN CAPITAL RISKS

Any lessening of the Group’s ability to attract, motivate As a market leader, the Group is very attractive to and retain key employees would make it vulnerable to talented employees. losing personnel with crucial expertise. It conducts periodic salary reviews in order to Furthermore, although Autogrill promotes behaviors that reward employee dedication and success, thereby value the dignity and protect the rights of all individuals, fostering a sense of belonging, and to ensure its from the selection process throughout their careers, it policies are competitive with respect to consumer cannot rule out the risk of discriminatory conduct in the goods multinationals whose complexity and workplace, which could damage the working environment, distribution intensity are equivalent to Autogrill’s. affect employee retention and harm its reputation. It has implemented a human resource management policy based on principles laid down in the Code of Ethics, which encourages good relationships with employees and helps them develop their skills and abilities. As enshrined in the Code of Ethics, the Group is committed to promoting a safe, healthy, and non-discriminatory workplace that lets everyone reach their potential. Autogrill Group

98 1. Directors’ Report 99 Mitigating factors Mitigating The human resource management policy is based on principles laid down in the Code Ethics, of The Group personnel has implemented information and awareness campaigns on the risks internet,of social media and e-mail, as as well a graduated system evaluating for threats and the resiliency existing of protections cyber to attacks, including through the use vulnerability of tests. canIt also on Group-wide rely and local plans with insurersmajor that cyber for coverage include risks. To mitigate businessTo interruption risks, the Group has security and systems prevention and emergency management plans specific each to type event. of canIt also on Group-wide rely and local policies with insurers, major including for coverage material damage and interruption business of and for third-party liability. In addition, many concession agreements protect the Group against infrastructure closures (and lost business)therefore caused majeure. by force natural disasters and weather emergencies; structural damage infrastructure; to acts or threats terrorism; of pandemics; hostilities or wars; strikes; political instability. Autogrillinvolve locations directly and them force to close; halt or significantly traffic; reduce hurt critical points the of supply chain (suppliers or partners interdependent with Autogrill); damage or affect the functioning IT of systems and network infrastructures that support business key processes. cyber attacks through the use malware of or ransomware: the hacking or counterfeiting e-mail a company’s of in steal to order information payments non- to or order entitled parties. reputation damage caused by an attack designed to steal sensitive data or identities; the loss customer of data and violation customer of privacy; difficulty with standard operations if the attack aims thwartto access necessary to systems computer by authorized users supply chain (e.g. management); fines, in that the event sensitive data has been not protected in accordance with the international latest directives. Operational risks Operational BUSINESS INTERRUPTION Business be may interrupted briefly periods, longer or for generally as a result such as: events of • • • • • • • could:Such events • • • • In the case IT of systems, this can also take the form of attacks. cyber DATA SECURITY Cyber risks are by exacerbated the growing enjoyment and distribution goods of and services expanding over global networks, and the use information of technologies communicateto and transfer data in real time with people all the over world. The main cyber risks consist of: • • The impact extend may to: • • • • LABOR Labor is a significant the factor for whose Group, business has a strong customer service component. The need to Operational risks Mitigating factors

keep service quality up to customers’ and concession which encourages the Group to instill good grantors’ standards, and the complexity of regulations in relationships with its employees and help them the many countries served by the Group, may give it less develop their skills and abilities.

Annual Report 2018 flexibility to manage its workforce. The risks in question are mitigated through the The main risk is a significant increase in the cost per constant review of operating procedures in order employee, as a result of labor market trends caused by the to make the best, most efficient use of labor by economy or government regulations, with a consequent matching skills to the tasks at hand. decline in productivity. For example, the “living wage laws” enacted in some states of the U.S. increase The Group has also launched technological minimum wages and will be gradually extended to other innovations designed to revamp operating states. procedures with an eye toward a more efficient and effective workforce.

QUALITY, HEALTH, SAFETY AND ENVIRONMENT

Autogrill’s industry is highly regulated in terms of The Group has set up region-wide quality operating practices and worker and customer health and assurance systems to ensure high standards for all safety. This applies to consumer protection and product its products and services. quality, from raw materials to the finished product, through the use of proper food preparation processes and These are based on risk assessment processes for quality ingredients in compliance with all local raw materials, products and their suppliers to regulations and accepted standards of food and measure compliance with quality standards environmental safety. defined by the company following an HACCP approach; on systematic monitoring and control The Group is committed to complying with all procedures using specific KPIs; and on verifying the and regulations that keep its customers satisfied and safe. effectiveness of these measures through different kinds of specialized audits conducted periodically Nevertheless, unforeseeable events or improperly by internal and external industry professionals. evaluated factors could result in some non-compliance at the local, national, or international level. The Group is committed to the highest standards of health and safety for its employees, primarily These norms, which are highly complex as they apply to through the ongoing review of policies and concession operators or companies in the oil business, procedures, but also through technical could expose the Group to lawsuits and civil or criminal improvements, constant technology upgrades, penalties that might in turn affect its reputation. personal protective equipment, and training on the job.

In almost all countries served, the Group has set up health and safety committees involving management and workers’ representatives (depending on each country’s policies), to monitor compliance with laws and regulations and take steps to reduce, if not eliminate, the risk of accidents.

On the environmental front, the Group has adopted high safety standards and solid, reliable practices, including in the oil business, to ensure compliance with laws and regulations and the proper handling of potential environmental emergencies with a view to protecting people, natural settings, operations, property, and the affected communities. Autogrill Group

100 1. Directors’ Report 101 Mitigating factors Mitigating The Group is to always ways on the for lookout its environmentalreduce impact by improving its energy performance and basing new commercial concepts on innovative solutions, inspired by energy efficiency and sustainability and the consequent lowering emissions, of in accordance with the legislation inin force all countries served. In addition improving to its own performance, Autogrill the promotes responsible use of resources through internal awareness campaigns. Its own units stay therefore constantly abreast of and adapt theirlegal developments procedures and control systems accordingly, while bringing personnel up to date. isThere also a monitoring system that constantly audits the quality service of with respect to customers’ expectations and contractual/legal requirements, as as well the controls in with place regard reducing to in accidents the workplace. counter procurement risks,To the Group has continuity plans as mentioned in the “business interruption” section, and plans similar for or ingredientsreplacement its assortment keep to complete. As material raw for prices, specialized internal units constantly strive efficiency meet to targets by negotiating agreements with suppliers; key for strategic materials, prices be may to indexed protect the least temporarily, at Group, from spikes. The mix offerings of is periodically reviewed to optimize the interaction quality of and efficiency. On the sustainability of topic and human rights, the Group expects its suppliers with comply to the principles laid down in its Code Ethics. of In addition supplier to selection procedures based on a risk assessment approach, the Group has theadopted “Autogrill Group Supply Chain Sustainability Guidelines” that set general standards the for evaluation and vendors of instruct Group companies with work to suppliers that share its sustainability principles and run their businesses ethically and responsibly with respect peopleto and the environment. The Guidelines set supplier qualifications that are based on the most Operational risks Operational SUPPLY CHAIN SUPPLY areThere two main risks associated with the supply chain: thatevents might interfere with the proper functioning and continuity the of supply chain or internal distribution system Autogrill and prevent therefore from maintaining balanceda complete, and effective assortment that satisfies its customers, and rising prices goods for and services. Anycircumstance that hurts a main ability supplier’s to distributeproduce and/or its products could result in Autogrill locations that are missing necessary ingredients or goods. The impact could be magnified if such problems affect suppliers non-substitutable of products, logistical service which providers, to the or vendors Groupis highly exposed. Likewise, interfering events internal with the Group’s distribution system locations could short leave on ingredients or goods. Rising globalization has also raised the risk that suppliers will socially adopt not responsible behavior in their commercial dealings or will ignore international standards and principles on matters personal of dignity, working conditions, and health, safety and the environment. Operational risks Mitigating factors

important international agreements, conventions and standards and are in line with the Group’s Code of Ethics. Annual Report 2018 CORRUPTION

Violations of the Group’s Code of Ethics or of anti- The Group has adopted: corruption and other laws by Autogrill, its commercial • its own Code of Ethics, which requires all Group partners, agents or other parties acting in its name or on companies along with their top executives, its behalf may expose the Group and its employees to managers and employees to conduct themselves criminal or civil penalties and damage Autogrill’s according to the principles of legality, fairness reputation. and integrity; • an Anti-Corruption Policy that instructs all directors, managers, employees, and internal auditors of Group companies, and everyone who works in Italy or abroad in Autogrill’s name or on its behalf, what principles and rules they must follow to ensure compliance with anti- corruption laws. Through this document, the Group formalizes its across-the-board commitment to reject and prohibit corruption under all circumstances, with public officials and private parties alike, and its promise to observe anti-corruption laws in every country served.

Financial risks Mitigating factors

Regarding the management of financial risks, consisting mostly of interest rate, exchange rate and liquidity risk, see the financial risk management section of the notes.

1.6.2 CORPORATE GOVERNANCE

All information on this subject is included in the Corporate Governance Report, prepared in accordance with art. 123 bis of Legislative Decree 58 of 24 February 1998 and approved by the Board of Directors along with the annual report. It is available at Autogrill’s headquarters and secondary office, at the online market storage site www.1info.it, and on the Group’s website, www.autogrill.com (Governance section).

1.6.3 MANAGEMENT AND COORDINATION

At its meeting of 18 January 2007, the Board of Directors had decided that there were no conditions whereby Autogrill would be subject to the management and coordination of the parent, Schematrentaquattro S.r.l. (Schematrentaquattro S.p.A. since 18 November 2013), pursuant to Art. 2497 bis of the Italian Civil Code. Specifically, at that meeting the Board had verified that there were no indicators of effective dominant influence by the controlling shareholder, given Autogrill’s extensive managerial, organizational and administrative autonomy and the lack of instructions or directives

Autogrill Group from Schematrentaquattro S.p.A.

102 1. Directors’ Report 103

STATEMENT PURSUANT TO ART. 2.6.2(8) 2.6.2(8) ART. TO PURSUANT STATEMENT MARKETS FOR REGULATIONS OF THE BORSA BY MANAGED AND ORGANIZED S.P.A. ITALIANA the Company has independently drawn up and the approved organizational chart of Autogrill S.p.A. and the Autogrill and Group; the Company has obligation no with comply to conduct codes of or policies imposed by Schematrentaquattro or other companies by Edizione held S.r.l. the Company and receive, not does is in subject way no directives to, concerning extraordinaryinvestment operations initiatives; and/or the Company defines strategic, its own budgets and/or business and financial plans and carries them independently; out the Company and receive, not does is in not any subject way directives to, or instructions in matters finance of or lending and borrowing; commercial strategies are freely and independently assessed by the Board of Directors the of which Company, negotiates in full with autonomy customers and suppliers; the Company is subject not group to policies the for purchase goods of or services in the market; the Company directives receive not does or instructions with regarding to and disposals;acquisitions the Company is a party not any to cash pooling agreement or other support or coordination arrangements of a financial nature;

9. 8. In 2017, AutogrillIn S.p.A. 2017, began a process evaluate to whether the reasons its decision for 18 of January management (no 2007 and coordination by the still parent) applied.In a the Boardresolution Directors of 28 of September 2017, confirmed the absence of thatelements would suggest management and coordination by the direct parent, Schematrentaquattro S.p.A., or by the ultimate parent, Edizione S.r.l including inlight of the following considerations: 1. 2. 3. 4. 5. 6. 7. In respect Art. of Consob of Regulation 15 20249 no. 28 on conditions of December 2017 thefor listing companies of that control entities formed or governed under the of laws countries the outside European Union that are material of significance the to consolidated financial statements, report we that two companies fall under these provisions (HMSHost Corp. and Host International that Inc.), suitable procedures have been ensure to adopted total compliance with said rules, and that the conditions stated in Art. been satisfied. have 15 1.6.5  1.6.5 1.6.4 RELATED PARTY TRANSACTIONS PARTY RELATED 1.6.4 parties related Transactions qualify with not do the Group’s as atypical or unusual and fall within the normal operations. of sphere They are conducted in the interests of Autogrill S.p.A. and length the Group onan arm’s basis. See Section 1.2.2 on the corporate reorganization that took effect on 1 January 2018 and the “Other information”(above) section in the the to notes consolidated financial further statementsfor details party related of transactions, including the disclosures required by Consob Resolution 17221 12 of (amended March 2010 with Resolution The “Procedure party 17389 related June 23 for of 2010). transactions” is available online www.autogrill.com at (Governance section/ Related parties). Autogrill Group Annual Report 2018 104 3B). (format 3of Annex Regulation Consob of the 71 for provided Art. by format the in Document Disclosure the published voluntarily 2017 December Autogrill above, 28 on 1.2.2 Section in described as reorganization S.p.A.’s corporate of Autogrill scale extensive Given the transfers. and acquisitions, kind, in contributions through capital share in demergers, increases mergers, of significant case the 11971/1999) in Regulation (Consob Rules Listing of the 71 70 and Arts. by required documents disclosure public the issuing from exempts companies that 2012 of 20 January 18079 Resolution forprovided Consob by option the voted to take S.p.A. of Autogrill of Directors 2013 Board the January 24 On 1.6.10  2006. July of 28 DEM/6064293 Communication Consob by defined as transactions and/or unusual were no 2018 there atypical In 1.6.9 ATYPICAL ORUNUSUAL TRANSACTIONS 2006. July of 28 DEM/6064293 Communication Consob and 15519 2006 of 27 July Resolution Consob by defined as transactions events or non-recurring were no there significant year the during 2018, of 1January as 2017 effective December completed and in reorganization corporate for the Except 1.6.8  intermediaries. other or companies trust subsidiaries, through or year, directly the either during time not at any did and parents, ultimate of the capital share the representing securities other or equities does not own S.p.A. Autogrill 2018. of in disposed or were purchased shares No treasury share. per E 3.96 of amount average carrying an and of E 720k amount end of 2017), acarrying the with since (unchanged shares treasury 181,641 owned S.p.A. 2018 Autogrill December 31 At shares. 12,720,000 of to amaximum up stock of ordinary disposal subsequent and purchase the authorized Code, Civil Italian of the et seq. 2357 to Arts. 25on May 2017 pursuant and granted authorization the revoking after May 2018, of 24 meeting general annual The 1.6.7 TREASURY SHARES such. as research It does technological not conduct of service. quality development, improvements to the and product innovation, in invests Group the of activities, its nature to the relation In 1.6.6 RESEARCH AND DEVELOPMENT AND TRANSACTIONS AND SIGNIFICANT NON-RECURRING EVENTS 11971/1999 AND 71 OFCONSOB REGULATION NO. INFORMATION PURSUANT TO ARTS. 70 1. Directors’ Report 105 55,159 35,662 741,035 685,876 180,670 469,545 Equity at 31.12.2018 17,815 15,207 86,475 53,453 68,660 2018 ** Profit for the year Profit for the 892 E 48,300k) (8,027) 12,777 (32,677) (40,703) (46,347) Changes in the equity 45,371 22,885 649,894 126,325 695,265 500,684 Equity at 31.12.2017 RECONCILIATION BETWEEN PARENT AND AND BETWEEN PARENT RECONCILIATION EQUITY CONSOLIDATED The amount includes the combined effect of the subsidiaries contribution to consolidated and the profit E 86,817k elimination of dividends paid by subsidiaries to the parent E 33,364k Changes in the equity include dividends paid to shareholders ( ** * 1.6.11  1.6.11 Autogrill S.p.A. separate financial statements * statements financial consolidated Group Effect of the consolidation of subsidiaries’ financial taxation deferred related and statements reserve Translation interests non-controlling to attributable Equity Total consolidated equity (kE)

CONSOLIDATED FINANCIAL STATEMENTS 2 Annual Report 2018 Autogrill Group

108 2. Consolidated financial statements CONSOLIDATED 2.1 FINANCIAL STATEMENTS

2.1.1 STATEMENT OF FINANCIAL POSITION

Of which Of which Note (Ek) 31.12.2018 related parties 31.12.2017 related parties ASSETS Current assets 587,290 511,642 I Cash and cash equivalents 214,699 169,590 II Other financial assets 36,424 31,213 III Tax assets 19,572 15,373 IV Other receivables 14 7, 013 18,405 130,292 16,223 V Trade receivables 4 7,9 7 1 1,526 48,972 2,081 VI Inventories 121,611 116,20 2 Non current assets 2,049,337 1, 8 37, 2 6 0 VII Property, plant and equipment 982,682 880,916 VIII Goodwill 839,666 795,928 IX Other intangible assets 121,221 75,679 X Investments 1,891 3,506 XI Other financial assets 42,949 7, 2 7 2 33,344 6,285 XII Deferred tax assets 51,050 3 7, 815 XIII Other receivables 9,878 10,072 Assets for discontinued operations - - TOTAL ASSETS 2,636,627 2,348,902

LIABILITIES AND EQUITY LIABILITIES 1,895,592 1,653,637 Current liabilities 844,130 942,194 XIV Trade payables 376,460 32,043 351,168 2 7,9 6 4 XV Tax liabilities 4,726 3,566 XVI Other payables 369,425 4,568 343,773 3,146 XIX Bank loans and borrowings 68,968 218,244 XVII Other financial liabilities 8,294 7, 2 0 2 XXIII Provision for risks and charges 16,257 18,241 Non-current liabilities 1,051,462 711,443 XV Tax liabilities 8,541 4,916 XVIII Other payables 29,495 33,230 XIX Loans, net of current portion 549,912 235,442 XX Other financial liabilities 7, 4 7 8 6,000 XXI Bonds 303,026 290,413 XII Deferred tax liabilities 43,728 28,517 XXII Defined benefit plans 71,036 8 0,110 XXIII Provision for risks and charges 38,246 32,815 Liabilities for discontinued operations - - XXIV EQUITY 741,035 695,265 – attributable to owners of the parent 685,876 649,894 – attributable to non-controlling interests 55,159 45,371 TOTAL LIABILITIES AND EQUITY 2,636,627 2,348,902

109 Autogrill Group Annual Report 2018 110 2.1.2 INCOME STATEMENT XXXIV XXXIII XXXII XXXIV XXXII XXXI XXXI XXX XXIX XXVIII XXVII XXVI Note XXV – diluted – basic Ecents) (in share per Earnings Income tax Pre-tax profit Pre-tax Income (expense) from investments Financial expense – – to: attributable year the for Profit operations discontinued for Profit/(loss) Operating profit Profit for the year the for Profit Financial income assets intangible and equipment and plant property, on losses Impairment Depreciation and amortization and Depreciation Other operating expense Leases, rentals, concessions and royalties Personnel expense Raw materials, supplies and goods Other operating income (Ek) Revenue Total revenue and other operating income

non-controlling interests non-controlling owners of the parent the of owners Full year2018 1,556,983 , 3,114 4 1,8 5,113,140 5,223,912 560,364 876,522 (34,501) 1,772 7 110, ,807 0 8 7, 2 2 (31,145) 150,047 120,976 68,660 86,475 17,815 2,061 9,075 .0 7. 2 0 7. 2 13 - related parties Of which 10,388 78,986 3,807 2,154 128 101 59 - Full year2017 1,796,885 4,990,594 1,519,776 5,086,559 (45,700) 542,707 828,201 (28,626) 212,662 185,249 158,736 113,036 16,860 95,965 96,176 1,079 1,316 .8 7. 3 8 7. 3 797 - related parties Of which 75,479 3,220 2,358 ,412 7, 164 44 91 - 2. Consolidated financial statements 112 975 111 2017 (242) (377) (449) 1,352 4 7, 7 13 60,048 12,335 113,036 (53,963) (53,384) 347 (32) 423 703 2018 (106) (356) 16,249 86,475 21,286 81,785 15,964 103,071 attributable to non-controlling interests non-controlling to attributable attributable to owners of the parent

– Total other comprehensive income for the year the for income comprehensive other Total – Tax effectTax on items that may be subsequentlyreclassified to profit or loss Gain/(loss) on net investment hedge investment net on Gain/(loss) Foreign currency translation differences for foreign operations (Ek) Profit for the year Tax effectTax on items that will never be reclassified to profit or loss Items that may be subsequently reclassified to profit or loss income comprehensive other of share - Equity-accounted investee Items that will never be reclassified to profit or loss (liabilities)/asset benefit defined the of Remeasurements XXIV XXIV XXIV Note XXIV XXIV XXIV 2.1.3 STATEMENT OF COMPREHENSIVE INCOME OF COMPREHENSIVE STATEMENT 2.1.3 Autogrill Group Annual Report 2018 112 2.1.4  Total transactions with owners owners with transactions Total Sale of non-controlling interests non-controlling of Sale parent the of owners to distributions Total by contributions and Dividend distribution Dividend tax effect effect tax the of net (liabilities)/asset, benefit Remeasurements of the defined Stock options Stock Capital increase Capital reserves 2017 of to Allocation profit parent the of owners to Contributions by and distributions year the for Total other comprehensive income of other comprehensive income -share investee Equity-accounted hedge, net of the tax effect tax the of net hedge, investment net on Gain/(loss) equity in directly recognised parent, the of owners with Transaction differences for foreign operations foreign for differences translation currency Foreign year the for Profit year the for Total other comprehensive income 31.12.2017 31.12.2018 (Ek) of the parent (NOTE XXIV) STATEMENT OFCHANGES IN EQUITY

Share capital 68,688 68,688 ------Legal reserve 13,738 13,738 ------Translation 12,493 reserve 22,885 12,777 35,662 (32) 317 ------Other reserve Other reserve and retained (48,300) earnings 499,848 449,127 96,176 49,779 50,374 1,903 347 595 347 ------Treasury

shares (720) (720) ------Profit/(loss) for (96,176) the year (96,176) (96,176) 68,660 68,660 68,660 96,176 ------attributable to owners ofthe (48,300) (46,397) (45,802) 649,894 685,876 68,660 12,493 81,785 parent 1,903 Equity 347 595 (32) 317 - - - - non-controlling attributable to (33,164) interests 1,498) (11, 1,575) (11, 21,589 45,371 21,286 17,815 55,159 3,471 Equity 77 ------2. Consolidated financial statements ------113 Equity (9,823) (1,138) 45,371 to non- 12,335 43,997 15,539 16,860 (4,525) (10,961) interests (25,362) controlling attributable - - - - - 761 975 (242) (337) Equity 47, 713 (1,513) 96,176 (39,914) (41,427) 649,894 643,608 (40,675) (48,859) the parent attributable to owners of ------96,176 96,176 96,176 98,228 (98,228) (98,228) (61,773) (36,455) Profit/(loss) for the year ------assets reserve for-sale financial Available------727 727 727 (720) shares (1,447) Treasury Treasury ------34 975 975 57, 5 87 56,074 (1,513) 61,773 (4,220) 449,127 392,078 earnings and retained Other reserveOther ------(242) (337) 22,885 72,323 reserve (49,438) (48,859) Translation Translation ------reserve Hedging ------13,738 13,738

Legal reserve ------68,688 68,688 Share capital 31.12.2017 Total transactions with owners of the parent Sale of non-controlling interests Changes in ownership interests subsidiaries in Total contributions by and and contributions by Total distributions to owners of parent the Dividend distribution Capital increase Allocation of 2016 profitAllocation to of 2016 reserves Stock options Contributions by and and by Contributions distributions to owners of parent the Transaction with owners of the parent, recognised directly equity in Total other comprehensive comprehensive other Total income for the year Remeasurements of the the of Remeasurements (liabilities)/ benefit defined asset, net of the tax effect Equity-accounted investee - share of other income comprehensive Gain/(loss) on net investment hedge, net of the tax effect Foreign currency translation differences for foreign operations Total other comprehensive comprehensive other Total income for the year Profit for the year 31.12.2016 (Ek) Autogrill Group Annual Report 2018 114 *** ** * 2.1.5 STATEMENT OFCASH FLOWS Other cash flow (***) flow cash Other 2010 options stock of Exercise repayments of net loans, current new of Issue Other non cash items reversals of net assets, non-current on losses impairment and depreciation Amortisation, year the for expense financial net and profit Pre-tax equivalents cash and cash net Opening (Ek) Dividends paid Dividends lines credit non-current of Repayment loans non-current new of Issue lines credit non-current of Utilisations Repayments of bond (**) Avila of Acquisition (*) CroBag Le of Acquisition assets non-current of sale from Proceeds paid assets intangible and equipment and plant property, of Acquisition activities operating from flow cash Net Change in working capital Net cash flow used in investing activities investing in used flow cash Net Net change in financial non-current assets Interest paid paid Taxes Cash flow from operating activities liabilities and assets non-financial non-current in change Net Closing net cash and cash equivalents cash and cash net Closing assets non-current of disposal on Gain Effect of exchange on net cash and cash equivalents cash and cash net on exchange of Effect year the for flow Cash activities financing in used flow cash Net assets financial of disposal on gains and Adjustment Disposal of consolidated equity investments equity consolidated of Disposal investments equity consolidated of Acquisition 2017) E 7.5m for 2018 in increase capital ( of net subsidiaries, in shareholders minority to paid dividend Includes acquired cash Includes ( acquisition for out cash Includes E 47,982k), ( debt financial 13,498k) and acquired cash ( cash E 13,498k) acquired and E 2,454k) E 9.7m in (299,847) (247,078) (375,260) (48,300) 394,602 236,882 150,060 (23,424) (30,326) (18,347) (59,026) (13,033) 7 1) 7 2 17, ( 166,315 323,711 77 61 4 7, 37 141,693 (3,335) (5,907) (5,989) (5,019) 23,421 74,970 6,681 9,536 1,903 1,201 2018 672 (13) - - - (200,478) (132,779) (278,061) (285,436) 150,000 (26,650) 186,046 (40,675) 202,376 ,054) 4 5 0 7, 5 ( 213,742 1,48) 498 (11, 128,698 (11,675) ,280 8 2 7, 9 3 (15,270) 141,693 313,576 (6,537) (6,863) 17,023 12,870 (1,197) 11,161 1,809 4,216 (797) 2017 125 761 - - - 2. Consolidated financial statements 115 141,693 128,698 ( 2 7, 8 9 7 ) 169,590 158,74 4 (30,046) 141,693 166,315 ( 2 7, 8 9 7 ) 169,590 214,699 (48,384) Closing – net cashand cash equivalents - balance December as of 31 2018 and as of 31 December 2017 (Ek) Opening – net cash and cash equivalents - balance January as of 1st 2018 and as of 1 January 2017 Cash and cash equivalents Current account overdrafts Cash and cash equivalents Current account overdrafts RECONCILIATION OF NET CASH AND CASH EQUIVALENTS CASH AND NET CASH OF RECONCILIATION Annual Report 2018 Autogrill Group

116 2. Consolidated financial statements NOTES TO THE FINANCIAL 2.2 STATEMENTS

GROUP OPERATIONS

The Autogrill Group operates in the food & beverage industry, mainly at airports, motorway rest stops and railway stations, under contracts known as concessions.

2.2.1 ACCOUNTING POLICIES AND BASIS OF CONSOLIDATION

GENERAL STANDARDS

These financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and endorsed by the European Union. IFRS means International Financial Reporting Standards including International Accounting Standards (IAS), supplemented by the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), previously called the Standing Interpretations Committee (SIC).

The financial statements are also compliant with the rules on reporting formats adopted by Consob in accordance with Art. 9 of Legislative Decree 38/2005 and with the other Consob regulations on financial reporting.

The financial statements were prepared on a going-concern basis using the euro as the functional currency. Unless otherwise specified, the figures in the financial statements and notes are in thousands of euros (Ek).

The accounting standards, amendments and interpretations issued by the IASB and endorsed by the European Union for mandatory adoption in financial statements for years beginning on 1 January 2018 are: • IFRS 9 - Financial instruments and • IFRS 15 - Revenue from contracts with customers (with amendments).

The new standard IFRS 9 - Financial Instruments replaces IAS 39 - Financial instruments: recognition and measurement; the main impact concerns the classification and measurement of financial assets and liabilities and the impairment of financial assets, as well as hedge accounting and the treatment of changes to financial liabilities.

IFRS 15 - Revenue from Contracts with Customers replaces IAS 18 – Revenue and IAS 11 – Construction contracts, as well as IFRIC 13 - Customer loyalty programs, IFRIC 15 – Agreements for the construction of real estate, IFRIC 18 – Transfers of assets

117 Autogrill Group Annual Report 2018 118 of effect cumulative the reported has Autogrill application, Therefore, first-time on approach. retrospective amodified 16 using to IFRS apply opted has Group The lessor. for the changes significant it entail nor will leases, finance as classified previously arrangements those not impact will 17. new standard of the Therefore, IAS under application lessee’s the (from leases side) required previously as financial and operating between distinction accounting the eliminating thus payments, lease guaranteed annual minimum net of future side present value the liabilities the on and asset, leased of the of use right side, the assets the on to recognize, lessee the requires which arrangements of lease acomprehensive provides model accounting for the newThe standard 2019. January 1 after or on beginning periods for annual 16 effective is IFRS newThe standard components. lease including contracts or contracts lease to only but contracts, not therefore, to applicable service 16 is, IFRS consideration. for exchange in of time for aperiod asset, underlying of the use of the direction the and control the from benefits economic the all obtaining substantially asset identified an to use right the on based of lease anew definition introduced has new standard The of alease. form legal the involving transactions of the substance the Evaluating SIC 27 – and -Incentives leases SIC 15 alease, -Operating contains arrangement an whether 4-Determining IFRIC interpretations the well as as 17 -Leases, IAS standard previous replace the will that 16 –Leases IFRS issued IASB 2016, the January In ACCOUNTING STANDARDNEW 16 IFRS measurement. or classification of either terms in statements 2018 financial the on impact have asignificant not had 15 IFRS 9and new IFRS spot), the the on entirely almost paid and products consumer of sale (revenue the business from of the characteristics the and liabilities) and assets (financial position statement of financial of Autogrill’s makeup current Given the of items. classification or measurements the on impact to have asignificant investments), not expected is of wholly-owned portfolio a with liabilities and assets (financial position statement of financial Autogrill’s of makeup current the given amendments, and above standard of the application The • • • statements: financial 2018 the in to early apply not choose did Group 2019 the that 1January after or on beginning years in adoption for Union mandatory European the endorsed by and IASB the by issued interpretations and amendments standards, accounting the Below are • • cost. and obligations”) “performance or services and of revenuecomponents goods (associated various the of allocating method the particular, in customers/suppliers and, revenue/costs with contracts for from recognizing criteria the It governs services. advertising involving transactions –Revenue: Barter SIC 31 and customers, from Amendments to IAS 28: Long-term Interests in Associates and Joint Ventures. Ventures. Joint and Associates in Interests Long-term 28: to IAS Amendments Com Negative -Pre Instruments Financial 9: to IFRS Amendments Tax over Income Treatments. Uncertainty 23: IFRIC instruments). equity in or cash in settlement choice between the offer that transactions share-based and transactions (cash-settled cases to specific applies standard how the clarifying Payments, 2–Share-based to IFRS Amendments Customers. with 15: Contracts Revenue from to IFRS Amendments ­pen tion. ­tion. ­sa ­pay ment Features with ­ment with Features 2. Consolidated financial statements 119 the contractual perimeter falling within the scope IFRS of (lease 16 contracts or contracts containing was lease identified components) based on the conclusions the inGroup reached the past, pursuant IFRIC to 4 and IAS the 17; Group therefore recognized a right use of all for contracts previously classified as operating leases; thefor purposes onerous of contracts accounting, and as alternative the to impairment test activity be to carried on the out right use of 1 January at the 2019, assessment was based on the rules envisaged in IAS 37 - Provisions, contingent liabilities and contingent assets, thus already adjusting the right use of by any provision onerous contracts for outstanding 31 at December 2018; the Group elected apply the to recognition exemption short-term to leases, namely those expiring by 31 and December leases to 2019, on “low-value” assets, namely those with an underlying assets worth than E 10,000 those new; when for contracts, the introduction IFRS of will 16 result not in the recognition the of lease liability and the right use of 1 January, at while the lease instalments will continue beto recognized in profit or loss on a straight line the basis over lease term; the Group elected recognize to not its initial direct costs (consulting, legal expenses, reclassifications no therefore etc.), on first-time made were “key money,” application; the right use of has been adjusted reflect to any one-off lease payments or at made thebefore and date commencement any prepayments already recognized in the financial of statement position 31 at December 2018, as as well lease incentives 1 January before received 2019. apply IFRS not to leases to intangible of 16 assets; applying the standard new equity to January 1 at without 2019, restatingcomparative figures the for previous year. At the transition date, the make to use Group decided some of the of practical expedients envisaged under the transitional provisions the of standard. new Specifically: • • • • • The Group assessed the impact first-time of application the of standard the at transition January through (1 date 2019), an in-depth analysis the of contracts potentially eligible as concessions, leases (area business leases and commercial leases) and the clauses contained therein, understand to in order the main clauses for relevant the purposes IFRS of is 16. also It completing the implementation and integration of local accounting and reporting systems be to used determine to the impact on the consolidated income and financial of statement statement Group’s position as 1 of January and the 2019, updating the of administrative and control processes used to oversee critical areas within the scope the of IFRS new 16. On the basis current of information and in line with the assumptions set the above, out financial of statement positionGroup’s 1 January at will 2019 an show increasein non- current assets (right against use) of an estimated increase in financial liabilities of between E 2,300m andE 2,600m. The amount any of third party sub-leases of (most them in effect in the with United States) a residual life equal the to lease head has fromdeducted the right use, of which is also adjusted reflect to the use the of practical expedients mentioned above. The initial estimate the of impact first-time of application change may between the these of date consolidated financial statements and the condensed interim consolidated financial 30 as statements at June the 2019, implementation new of accounting reporting) (or systems and the definitive recognition contracts of qualifying as leases is still underway. The transition IFRS to required 16 certain be professional to made, judgements including the definition some of accounting policies and the use assumptions of and estimates. In this regard, the the Group decided following: • Autogrill Group Annual Report 2018 120 currency other than the euro: afunctional with subsidiaries main of statements the financial the to translate rates used exchange the Below are equity. in statement of changes the in reserve” “translation under shown comprehensive and other income in recognized are and operations foreign in net investment of the part as treated are foreseeable the future, in nor likely planned neither is of which payment or collection the operations, receivables foreign from payables or with arising losses and gains Exchange equity. in statement of changes the in reserve” “translation under shown comprehensive and income statement of the in recognized are differences place. Exchange took transactions corresponding when the force in those year, at rates for approximate average converted the which exchange are expense and Income end. at year rates prevailing at the translated are business, of aforeign acquisition generated the by adjustments value fair and goodwill including euro, the than other currency afunctional with subsidiaries of foreign liabilities and assets the statements, financial consolidated of the For purposes the currency). (functional location primary of its currency the in prepared are of consolidation scope included the of statements each company financial The • • • • • follows: as are statements financial 2018 consolidated the in 7, used formats the IAS 1and IAS with accordance In basis. concern agoing on have statements prepared been 1(25), financial consolidated the IAS and 1(24) to IAS Pursuant over time. constant are standards and Formats flows. cash and results position, Group’s of the view fair and financial atrue give presented and clearly are statements financial The STATEMENTS CONSOLIDATED THE OF CONTENT STRUCTURE, AND FORMAT FINANCIAL loans. on covenants of existing calculation the not affect will standard of this adoption lenders, the with agreed as Lastly, indicators. key performance associated 2019 the June 30 and from starting statements financial consolidated of the presentation the change significantly 16 will of IFRS application above that is the emerges from What above. mentioned expedients practical the by permitted as low-value leases months) and 12 of than less duration aresidual (with leases exclusion of short-term to the well as as commitments, these of discounting effect to the attributable 2018) mainly is December 31 below ( note 2.2.11 in 17 reported as to IAS pursuant commitments lease operating the and E 2,600m) and E 2,300m 2019 (between at 1January 16 adoption of IFRS impact estimated the between difference The • • US Dollar British Sterling British Franc Swiss Canadian Dollar Statement of cash flows, using the indirect method to determine cash flow from operating activities. operating from flow cash to determine method indirect the using flows, Statement of cash equity; in Statement of changes income; comprehensive of Statement nature; by classified costs with statement, Income items; non-current and current between split liabilities and assets with position, Statement of financial spread. credit plus acountry-specific leases of the duration the with line in maturities up, with were drawn leases where the rate risk-free of each country to the equal rate, adiscount payments lease minimum to future applying by Group’s liabilities lease the the for not available rate all is interest implicit to determine the leases, as options; termination early and renewal with of leases term lease the date to determine transition at the available information the to use Rate on31December 1.5605 0.8945 1.1450 1.1269 2018 Average ratefortheyear 0.8847 1.5294 1.1550 1.1810 Rate on31December 1.5039 0.8872 1.1993 1.1702 2017 Average ratefortheyear 2,981m at E 2,981m 1.4647 0.8767 1.1297 1.1117 2. Consolidated financial statements 121 BASIS OF CONSOLIDATION OF BASIS The scope consolidation of subsidiariesincludes which for thepursuant Group, IFRS to is exposed10, or has to rights variable to returns and affect to is able those returns through these over power investees. The list consolidated of companies is annexed to these notes. The consolidated financial the statementsinclude financial 2018 statements of Autogrill S.p.A. and all companies directly it or indirectly controls or controlled during the The scope year. consolidation of also some companies French that are wholly not owned and others belonging the to U.S. subsidiary HMSHost Corporation the (see annex “List consolidated of companies and other investments”), which are controlled on the stake basis and or lower a 50% of an agreement that puts their business under the management Autogrill. of The financial subsidiaries statements of are consolidated on a line-by-line basis, i.e. by recognizing the full amount their of assets and liabilities the at close the of year and their income and expenses the for entire the year or for portion theof year during which control was maintained, and eliminating the carrying amount the of consolidated equity investments by the held parent against the share relative equity. of Non-controlling interests in the assets net consolidated of subsidiaries are identified separately from equity attributable the to owners the of parent. They are determined on the basis the of non-controlling share investors’ the of fair value the of assets and liabilities recognized the at acquisition of date “Business (see combinations”) and of changes in equity attributable non-controlling to interests after that date. Any material unrealized gains and losses arising transactions of out between consolidated companies are eliminated, as are all significant receivables, payables, income and expenses between Group companies. These adjustments, like the other consolidation adjustments, take account any of tax deferred effects. The income andexpense subsidiaries of acquired during or sold the year are included in the consolidated income from statement the actual acquisition of date the or to actual disposal, of date with slight timing adjustments these where not do dates coincide with monthly accounting dates. If necessary, adjustments are to made subsidiaries’ financial bring statements to their accounting policies into line with those theof Group. If control a subsidiary of is lost, the Group eliminates assets and liabilities, non- controlling interests, and other components equity of relating the to former subsidiaries. Gain or loss resulting from loss control of is recognized in profit or loss. Any interest retained in the former subsidiary is measured fair at value on the of date loss control. of is subsequently It valued using the equity net method, or as a financial asset depending on the degree influence of retained. HMSHost Corporation and its subsidiaries, following common practice in English- speaking countries, close their fiscal year on the Friday closest 31 to December and periods, four-week divide into which 13 it in turn are grouped into 12-week quarters with the exception the of last which is a 16-week quarter. As a result, the accounts inincluded the consolidated 2018 financial the statements cover period 30 December 28 to December 2018,2017 while the accounts the previous covered period year’s 31 This has had significant no December 29 to 2017. December 2016 impact on the financial of statement position 31 at December or on results 2018 the for year. As explained in greater detail on 28 February below, 2018, through the subsidiary Autogrill Deutschland the GmbH, Group acquired the of 100% companies Le CroBag Autogrill Group Annual Report 2018 122 instruments equity and assumed, or incurred liabilities given, of assets of exchange, date at the values, fair of the aggregate the as determined is of each combination cost The method. acquisition the using combinations business for all accounts Group The 31 DECEMBER 2007 FROM OUT 1JANUARY CARRIED TO 2004 COMBINATIONS BUSINESS equities. or debt securities of issuing cost for is the sole exception received; the services the and incurred are costs the which in period the in loss or profit in recognized are acquisition to the relating costs The loss. or profit in recognized is loss or gain resulting any and value fair at acquisition-date its remeasured is acquiree held the in previously interest the stages, in achieved combination of abusiness case In assumed. liabilities identifiable the and acquired assets identifiable of the net amount acquisition-date the and transferred consideration the between excess the as measured initially is and asset an as recognized is acquisition the from arising Goodwill acquiree’s assets. of the net identifiable share minority to the proportion in or value fair at measured is acquiree the in interest minority any For combination, each business measured. reliably be can value when fair events its past and from deriving obligation acurrent represents liability this if only combination abusiness in assumed is acquiree of the liability A contingent values. fair acquisition-date respective at their measured are assumed liabilities identifiable the and acquired assets identifiable The costs. other under recognized and transferred consideration the deducted from element of the off-market is price the and contract, by established as provision, settlement of the lesser the acquiree, the and Group the between relationship existing apre- settles combination business the If combination. business the replaced in be have to that acquiree the by recognized payments share-based included in incentives of the and consideration contingent of any value fair the well as Group, as the by issued interests of the and transferred liabilities and assets of date, the acquisition of the as value, fair includes the combination abusiness in transferred consideration The method. acquisition the using combinations business for all accounts Group The combinations. -Business 3(2008) of IFRS rules followed has Group the the 2008, 1January Since 1JANUARY 2008 SINCE OUT CARRIED COMBINATIONS BUSINESS COMBINATIONS BUSINESS below. policies accounting individual the in specified as value, at fair measured are IFRS with accordance in for except items that principle, cost historical follows Group The the POLICIES ACCOUNTING Partners. Stellar firm retail airport the (“Avila”)& Management through Development Retail Avila acquired Corporation HMSHost subsidiary U.S. the channel, airport American Group’s of the North the in part as 2018, expansion August 31 On Poland. and Austria Germany, in stations at railway locations F.F.N. KGGmbH and &Co. &beverage food CroBag Le operate GmbH, which 2. Consolidated financial statements 123 issued by the Group in exchange control the of for acquiree. Any costs directly attributable a business to combination also form part its overall of cost. identifiableThe acquiree’s assets, liabilities and contingent liabilities that can be recognized under IFRS 3 - Business Combinations are posted their at fair value on the acquisition. of date Goodwill arising from the acquisitionis recognized asan asset and valued initially at cost, i.e., the amount by which the interest in acquisitionthe cost exceeds the Group’s fair value the of identifiable assets, liabilities and contingent liabilities recognized on acquisition. Non-controlling interests in the acquiree are initially measured according their to percentage interest in the fair value the of assets, liabilities and contingent liabilities recognized acquisition. on BUSINESS COMBINATIONS CARRIED OUT 2004 BEFORE 1 JANUARY On first-time adoption IFRS of January (1 the apply IFRS to not 2005), Group decided 3 – Business Combinations retroactively the to acquisitions prior made the to of date changeover IFRS to January (1 Consequently, 2004). goodwill arising on acquisitions priormade that to has date been maintained the at previous value determined under Italian GAAP, subject measurement to and recognition any of impairment losses. BUSINESS COMBINATIONS UNDER COMMON CONTROL A business combination in which the combining entities or businesses are ultimately controlled by the same party or parties both and before after the business combination, thatwhen control is transitory, not qualifies as a combination common “under Businesscontrol.” combinations under common control are the outside scope IFRS of 3 “BusinessCombinations” and other of IFRS. In the absence an of accounting principle that deals specifically with these transactions, the most suitable accounting principle beto chosen should the meet general object IAS of 8, that is, faithful and reliable presentation the of transaction. Furthermore, the accounting treatment business of combinations under common control should reflect the economic substance the of transaction, regardless its legal of form. Thepre-eminence economic of substance is thetherefore factorguiding key the method chosen account to these for business combinations. Economic substance the to must creation value refer that added of translates into significant changes in the cash flows the of assets net transferred. The accounting treatment the of transaction should also take account current of interpretations and trends, in particular 1 (Orientamenti OPI Preliminari Assirevi in tema di IFRS - Preliminary Orientations on IFRS by the Italian Association of “Accounting treatmentAuditors), business of combinations entities of under common control in separate and consolidated financial statements.” The Autogrill Group recognizes the assets net transferred the at carrying amounts in presented the consolidated financial the statements of common parent and treats the resulting difference between the acquisition price and the value the of assets net transferred as an adjustment equity net of reserves attributable the to Group. in theConversely, case discontinued of operations, the difference between the disposal price and the value the of assets net transferred is treated as an adjustment the of share equity net Autogrill of reserves. Group’s ACQUISITIONS OF NON-CONTROLLING INTERESTS The Group applies IFRS all to 10 acquisitions carried after out control is assumed. On that basis, such acquisitions are treated as transactions carried with out shareholders in their capacity as owners, and give not rise do goodwill. to Adjustments non- to controlling investments are based on a proportional amount the of subsidiary’s net Autogrill Group Annual Report 2018 124 Group’s of the net amount the is commission. revenue recognized the transaction, asales in aprincipal not as agent and an as acting is Group the When value. relative fair of the basis the on provided broken service by be down will consideration the years, different in provided are contract covered asingle under services the When performed. work of the to measurements according determined is of completion Stage end. at of completion year stage to the according recognized are revenue costs and Service client’s the in warehouse. products of the arrival the with coincides usually transfer the transactions, of wholesale instance the In asked. consideration the paid has consumer delivered the are and goods place when the takes generally transfer the sale, of aretail case the In to reap benefits. its and used is decide asset how an to ability the meaning control, acquires customer when the transferred are Goods recognized. is sale of revenue areduction when as the charged is reliably, discount measured the be can amount the and granted be will discounts it probable is If that measured. accurately be revenue of the can amount the buyer and to the transferred are goods of the ownership to connected benefits the and risks as) the when (or gradually recognized Revenue is end bonuses. year- and discounts rebates, sales received or net paid of returns, price the i.e., value, at fair of title transfer on recognized are of goods sales and purchases context, this In • • • • • revenue: new model for recognizing following out the sets standard The Customers. with 15 Contracts –Revenue from IFRS published IASB the May 2014, 28 On COSTS AND REVENUE OF RECOGNITION control. joint or influence date it significant no longer to the has up method, equity the using recognized Group’s includestatements the losses, or investees’ profits of the share financial consolidated The costs. includes transaction investment of the cost The cost. at recognized initially are ventures joint and associates in investments Accordingly, held as for sale. classified is investment where the except method, equity the using statements financial consolidated the in recognized are ventures joint and of associates liabilities and assets expenses, income, The liabilities. for obligations and to assets rights than rather to net assets, rights has Group the which through agreement an is venture ajoint policies; operational and financial associate’s the regarding decisions in participation through control, joint or control not but influence, asignificant has Group the over acompany which is associate An INVESTMENTS ASSOCIATES VENTURES IN JOINT AND date. transaction the on acquired net assets the in interest of the value book to the respect with investment additional of the cost excess represented the asubsidiary in interest of anon-controlling acquisition the from of goodwill recognition the Previously, assets. revenue is recognized when the entity satisfies each performance obligation. each performance satisfies entity when the revenue recognized is contract. the in obligations performance to the price transaction the allocate price; transaction the determine contract; the in obligations performance the identify acustomer; with contract the identify 2. Consolidated financial statements 125 Recoveries costs of borne on behalf third of parties are recognized as a deductionfrom the cost. related EMPLOYEE BENEFITS BENEFITS EMPLOYEE All benefits employee are recognized and disclosed on an accruals basis. Group companies provide defined benefit and defined contribution plans. benefitPost-employment plans are formalized agreements the whereby Group provides post-employment benefits The manner employees. or more one to in which these benefits are provided varies according legal, to fiscal and economic conditions in the countries in which the Group operates, and are normally based on compensation and years service. of Defined-contribution plans are post-employment benefit plans under which the Group pre-determinedpays contributions a separate to entity fund) (a and will legal no have or constructive obligation further pay to contributions should the fund have insufficient assets all pay to benefits employees. to Defined benefit plans are post-employment benefit plans other than defined contribution plans. Defined benefit plans be may unfunded or else entirely or partly funded by contributions and sometimes paid by the by a the to employer, employee, company or fund which is legally separate from the company that the pays benefits. The amount accrued is projected forward estimate to the amount on payable termination and employment of is then discounted using the projected unit credit method, which determines the liability on the basis conditions employment of in effect on the is measured. it date The liability is recognized in the accounts the of net fair value any of plan assets. If the calculation a benefit generates the for the Group, amount the of asset recognized is equal the to sum any of unrecognized previous cost for and employment the present value economic of benefits available in the form refunds of from the plan or reductions RECOGNITION OF FINANCIAL INCOME AND EXPENSE EXPENSE AND INCOME FINANCIAL OF RECOGNITION Financial income interest includes on invested liquidity (including financial assets dividends approved, proceeds sale), available for from the transfer financial of assets sale,available for fair value changes in financial assets recognized in profit or loss, income arising from a business combination the to due remeasurement fair at value of the interest already gains held, on hedging instrumentsrecognized in profit or loss, and the reclassification gains net of previously recognized in other comprehensive income. Interest income is recognized on an accruals basis using the effective interest method. Dividends are right recognized them receive is to the when Group’s established. Financial expense interestincludes on loans, the discounting of release on provisions and income, deferred losses from the transfer financial of assets sale, available for fair value changes in financial assets recognized in profit or loss and in contingent consideration, impairment losses on financial assets than (other trade receivables), losses on hedging instruments recognized in profit or loss, and the reclassification of lossesnet previously recognized in income. other comprehensive foreignNet exchange gains or losses on financial assets/liabilities are shown under financial income and expense on the basis the of gain net or loss produced by foreign currency transactions. Autogrill Group Annual Report 2018 126 Tax Income Act. Consolidated the by permitted as S.r.l. Edizione parent ultimate scheme of the consolidation tax domestic have the joined S.r.l. Nuova Sidap subsidiary Italian its and S.p.A. Autogrill 2016-2018, period For three-year operates. Group where the countries the date in reporting deor basis) facto the on (on official effect an rates in tax the using determined are liabilities tax Current taxed. never deducted or be will items well that as as years, other in deducted taxed or be will that income it excludes and statement because costs income the in reported result the from year. for Taxable the income differs income taxable on calculated is tax Current income. comprehensive other in or equity in directly recognized of those exception the year,for the with loss or profit the in recognized deferred taxes and of current sum Tax the is year for the TAX INCOME benefits). (employee expense personnel under loss or profit in recognized are liability of the value fair the in changes Any rights. option of the value fair of the remeasurement the on based date, settlement at the at each and year-end measured is liability The payment. to receive right employees unconditional the have which the during period the over entry acontra as liabilities in increase an with acost, as employees recognized is payable to amount of the value fair the Group’s plans, Option Stock Phantom include the which entity), adifferent by issued instruments financial other or equity with settled (or those transactions payment share-based of cash-settled case the In conditions. actual and expected between differences for no There true-up is non-market conditions. and conditions service both reflect to adjusted is cost the vest, actually will that of options number the on based is amount final the that so Also, indexes. market and shares of Autogrill performance the as such conditions, market-based vesting of all basis the on estimated is of options value fair The awards. to the entitled employees unconditionally the become which in period over the earnings”), retained and reserves (“Other equity in increase corresponding a with expense personnel in to employees recognized is granted options of the value fair grant-date the plan, Units Share new Performance company, include the which of the instruments equity with settled transactions payment of share-based case the In SHARE-BASED PAYMENTS • • reform”): security “Social 2007(the early in issued regulations and decrees the by and 2006 of 27 296 Law December by about brought TFR) or rapporto fine di (trattamento benefits of post-employment system the in to changes Due statement of comprehensive the income. in recognized are assumptions actuarial in changes and adjustments experience from losses and gains Group. Actuarial outside the made actuaries by are valuations Actuarial liabilities. plan of the settlement upon or plan of the duration the throughout realized be it can when Group to the available is benefit economic An plan. to the contributions future in not yet paid into the funds is listed under “Other payables.” “Other under listed is funds the into not yet paid portion The costs. as recognized fully are period the during accrued contributions so plan, contribution adefined as treated 2007is 1January from accrued TFR vests; right the which in period the in recognized are of service, termination upon paid are which of TFR, form to employees the in promised 19. benefits The IAS with accordance in plan benefit adefined as treated employees by Group’s is 2006 of the December at companies 31 accrued Italian TFR 2. Consolidated financial statements 127 payment in full the of amount corresponding the to transferred profit times the IRES (corporate tax) rate; payment in full the of amount corresponding the to transferred loss times the IRES (corporate tax) utilized rate, when by Edizione S.r.l.; the transfer any of tax assets, also with respect the to subgroup including the Italian companies formed as a result the of reorganization, as acknowledged inthe regulations defining transactions with Edizione S.r.l. The companies formed as a result the of corporate reorganization (Autogrill Italia S.p.A., Autogrill Europe S.p.A., and Autogrill Advanced BusinessService S.p.A.) have also joined the domestic tax consolidation the of scheme ultimate parent Edizione S.r.l. thefor three-year period 2018-2020. The regulation signed by the parties provides for: • • • currentThe net tax asset or liability in the for respect year, IRES of is therefore only, recognized Edizione from/to due or payable S.r.l. as a receivable and is not therefore shown under tax assets or liabilities or“Other but under “Other payables.” receivables” Deferred tax liabilities are generally recognized all for taxable temporary differences, while tax deferred assets, arising from temporary deductible differences and losses carried forward, are recognized and maintained in the financial thestatements to extent that future taxable income is likelybe to earned allowing use those of assets. Specifically, the carrying amount tax deferred of assets is reportingreviewed each at based date on the forecasts latest as future to taxable income, also with respect the to subgroup including the Italian companies formed as a result the of reorganization, as acknowledged in the Consolidated Income Tax Agreement with Edizione S.r.l. Deferred tax assets and liabilities are recognized not if the temporary differences arise from the initial recognition goodwill of transactions for or, other than business combinations, other of assets or liabilities in transactions that influence no have either on accounting profit or on taxable income. Deferred tax liabilities are recognized on taxable temporary differences relating equity to investments in subsidiaries, associates or joint ventures, unless the monitor to the Group is able reversal the of temporary differences and they are unlikely be to reversed in future. the foreseeable Deferred tax assets and liabilities are measured usingthe tax that rate will the apply at time the asset is realized or the liability is settled, taking account the of tax in rates the at the of force end year. Current and tax deferred assets and liabilities are offset there when is a legal right do to so and they when pertain the to same tax authorities. GOODWILL Goodwill arising from the acquisition subsidiaries of is shown separately in the financial of statement position. Goodwill is amortized, not but is subject impairment to testing on a yearly basis or specificwhen or changed events circumstances indicate the possibility a loss of in value. After its initial recognition, goodwill is measured cost at any of net accumulated impairment losses. Upon the sale a company of or part a company of whose previous acquisition rise gave goodwill,to account is taken the of residual value the of goodwill in determining the capital gain or loss from the sale. NON-CURRENT ASSETS NON-CURRENT Autogrill Group Annual Report 2018 128 replaced by are higher, of charge”, if free For rates, these “Assets transferred to be not depreciated. is Land equipment: and plant for property, used periods depreciation the are following The depreciation. when determining considered component belongs) individually are the to which asset of E excess (in value of significant frequency. Components usual the with and out properly carried to be continue will maintenance that assuming condition, agreed contractually the to asset to restore the relevant contract of the expiry on incurred to be likely are 37) that IAS compatible with (if expenses estimated includes reasonably Cost end. year every at of each asset life useful the reviews Group The lives. useful estimated their to reflect at rates deemed basis astraight-line on depreciated are equipment and plant Property, 1. IFRS with consistent are they as statements financial the in laws were maintained revaluation monetary with accordance out in carried revaluations any to IFRS, transition On asset. to the attributed be reasonably can that share to the according costs indirect or direct and charges ancillary including cost, production or price at purchase stated are They reliably determined. be can asset of the cost when the and benefits generate future will asset of the when use it probable is that recognized are equipment and plant Property, EQUIPMENT AND PROPERTY, PLANT asset: of intangible kinds various for the used periods amortization the are following The accordingly. impaired is asset -the assets” on losses “Impairment section the with accordance in -determined arise losses impairment If losses. impairment of possible evidence whenever is endat each and year there assets of these method amortization and life useful estimated the reviews Group The benefits. economic generate future will asset of the use that when it likely is life useful over their amortized and charges, ancillary including cost, production or price at purchase recognized are assets” intangible “Other ASSETS OTHER INTANGIBLE Other costs to be amortized be to costs Other commission on Software Other: rights Contractual goods monopoly state sell to License Software licenses Software rights: similar and Concessions, licenses, brands Other Industrial and commercial equipment machinery and Plant buildings Industrial Property, plantandequipment 500k) or with a different useful life (50% longer or shorter than that of the of the that than longer shorter or (50% life useful adifferent with or 500k) contract underlying 2-10 of term or years years 3-6 rights the Term of license Term of license 2-10 of term or years Useful life(year) 5-50 3-33 3-23 3-14 2. Consolidated financial statements 129 those corresponding the to term the of concession contract. An useful asset’s life is reviewed annually, and is changed maintenance when during work the year has enhancementsinvolved that or replacements materially change its useful life. Regardless depreciation of already recognized, if there are impairment losses (determined as described under “Impairment losses on non-financial assets”), the asset is impaired accordingly. Costs incurred enhanceto and maintain an asset that produce a material and tangible increase in its productivity or safety or extend its useful life are capitalized the to asset and amortized its useful over life. Routine maintenance costs are taken directly the to income statement. Leasehold are improvements in included property, plant and equipment on thebasis of the type cost of incurred. residual They are the useful depreciated over asset’s life or the term the of contract, is whichever shorter. The gain or loss from the sale property, of plant or equipment is the difference between the proceeds net the of sale and carrying the asset’s amount, and is recognized under “Other income” or “Other operating expense.” LEASED ASSETS Lease contracts are classified asfinance leases if the terms the of contract are such to transfer all risks and benefits ownership of the to lessee. All other lease contracts are treated as operating leases. Until IFRS all comes into 16 force, other leases are currently classified as operating leases. Assets acquired under finance leases are recognized fair at value as the of the of date commencement contract less ancillary charges and any expenses for replacing another party the at value present the of in the if minimum lower, lease, or, payments under the due contract. The corresponding liability the to lessor is charged to “Other financial liabilities.” Lease payments are divided into principal and interest, using a constantthe interest for rate full duration the of contract. Financial expense is recognized in the income statement. Operating lease payments are calculated the over term the of lease. Benefits received beor to and received, those be given or to given, as incentives taking for operating out leases are also recognized on a straight-line the basis for entire duration the of lease Section(see 2.2.11 “Operating leases”). AND ON REVERSALS IMPAIRMENT NON-FINANCIAL LOSSES ASSETS At annual each or interim reporting date, the Group tests whether there is internal or external evidence impairment of or impairment reversal concerning its property, plant and equipment or intangible assets. Ifso, amount the recoverable the of assets is estimated determine to any impairment loss or reversal. is Where possible not it to estimate amount the recoverable an of individual asset, the Group estimates the amountrecoverable the of cash-generating unit which to the asset belongs; a cash- generating unit is a group assets of that cash flows generates from broadly independent other assets or groups assets. of With regard property, to plant and equipment used in the sales network, this minimum aggregation unit is the sales outlet or sales outlets by a singlecovered concession agreement. Goodwill and are assets impairment tested for under development year and each at end any time there is evidence possible of impairment. The cash generating units which to goodwill has been allocated are grouped so that the detection of impairment of level reflects greatest of the detail level which at goodwill is Autogrill Group Annual Report 2018 130 • • statements: financial the In to sell. net of costs value fair and value lower at the of carrying it recognized is for sale, held as classified is asset/liability an Once use. continued not through and sale their through recovered be mainly will or been has value carrying their if for sale held as classified are discontinued being of operations liabilities and assets The of comparison. year of the beginning the of as discontinued been had operation the if as redetermined comprehensive is income statement of comparative the discontinued, as listed is operation an When for “held sale,” as first. whichever comes classified being for conditions when it sold when or the it is meets discontinued as listed is operation An • • • which: and group, of rest the the from distinguishable clearly are flows financial and activities whose of agroup part is operation A discontinued OPERATIONS DISCONTINUED AND SALE FOR HELD ASSETS/LIABILITIES statement. income to the taken is of impairment reversal The charged. not been had loss impairment the have would if had asset the that depreciation/amortization net of amount carrying may not the exceed which of goodwill), case (except of the recoverable in amount new estimate back to the written is unit cash-generating or asset the no longer exists, impairment for the reason the If amount. carrying to their proportion in unit of the assets other the deducted from is remainder any unit; to the attributed goodwill of any amount carrying the deducted from first are units cash-generating on losses Impairment statement. income the in recognized are losses Impairment reduced to recoverable amount. it is amount, carrying its than less to be estimated is unit cash-generating or asset of an recoverable the amount If asset. to the specific risks the of money and value time of the assessments market current reflects rate that apre-tax using value current their to discounted are flows cash future estimated the use, in value determining In use. in value and of disposal costs less value of fair higher the is recoverableThe amount combination. of the synergies the from to benefit expected units cash-generating to the allocated is combination abusiness in acquired Goodwill purposes. reporting formonitored internal not offset. not are and assets/liabilities other from separately position statement of financial the in shown are operations discontinued held and for sale liabilities and assets financial of comparison; sake for the reclassified are year prior the from amounts corresponding the sale; the with realized loss or gain capital any with sold), along (if costs transfer and effects net of tax statement, income the in separately shown is operations of discontinued loss or net profit the it. of reselling sole purpose for the acquired asubsidiary is or of business, area geographical or of amajor independent branch to dispose plan coordinated of asingle part is of business, area geographical or amajor independent branch constitutes

2. Consolidated financial statements 131

CURRENT CURRENT ‑ recognized fair at value taking account the of amounts transaction of net received, CURRENT ASSETS AND CURRENT & NON & CURRENT AND ASSETS CURRENT INVENTORIES Inventories are recognized purchase of the at lower or production cost and market value. Purchase or production cost directly includes attributable expenses,discounts, of net annualrebates, bonuses and similar contributions from suppliers, and is calculated using the FIFO method or with criteria that approximate FIFO. When the carrying value of inventories is higher than their realizable net value, they are written down and an impairment loss is charged the to income statement. The recoverability inventories is of verified reporting each at If date. the reasons the for impairment they losscease apply, to are anreversed to amount exceeding not purchase or production cost. TRADE RECEIVABLES AND OTHER and are other receivables initially receivables Trade recognized fair at value, and subsequently amortized at cost using the effective interest method. They are reduced by estimated impairment losses, determined according procedures to that involve may both writedowns individual of positions, if material, the are where receivables objectively uncollectable in or in whole part, impairment or generic calculated on the basis historical of and statistical data. Inaccordance with IFRS are 9, eliminated factored receivables from the accounts if the contract entails the full transfer the of associated risks and rewards (contractual rights cash flows receive to from the The asset). difference between the carrying value the of asset transferred and the amount is recognized received in the income under statement financial expense. FINANCIALOTHER ASSETS “Other financial assets” are recognized or derecognized on the transaction and date are initially measured fairat value, including direct transaction costs. financialSubsequently, assets that the the for Grouppurpose sole holds collecting of contractual cash flows (principal and are interest) measured amortized at cost of net impairment losses. Financial assets collecting for held contractual cash flows (principal and and interest) subsequent salefor are measured initially fair at value including transaction costs. After first-time recognition they are carried fair at value, and any changes in fair value, other than impairment losses, are recognized as income other and comprehensive in presented the fair value reserve. When a financial asset is derecognized, the cumulative loss or gain is reclassified from income other profit to comprehensive (loss) thefor year. Financial assets other than the are above measured fair at value the at each of end period and gains and losses from fair value changes are recognized in financial income and expense. CASH AND CASH EQUIVALENTS Cash and cash equivalents cash include and current accounts with banks and post offices, as as well demanddeposits and other highly liquid short-term financial investments (maturity three of months or less from the acquisition that are date) immediately convertible cash; to they are stated value face as at they are subject no to significant risk impairment. of BONDS AND OVERDRAFTS BANK LOANS, LOANS, Interest-bearing bank loans, bonds and account overdrafts are initially LIABILITIES Autogrill Group Annual Report 2018 132 • • apply: rules following the for hedge accounting, qualify instruments financial When instruments. rates ofend comparable interest market year- to the according and of each contract, life remaining and conditions of the basis the on estimated flows cash the using determined is value fair For rate swaps, interest user. instrument’s of the country/currency of the securities) government on rate (based interest arisk-free using contract of the maturity residual rate for the spot current the and price forward contractual the between difference the discounting by estimated is value fair then not available, is price market alisted If available. where price, market listed the on based is contracts exchange of forward value fair the More specifically, value. at fair carried subsequently are They when incurred. loss or profit in recognized costs related transaction the with 39, 13 IAS and IFRS with accordance in value at fair measured initially are instruments financial derivative All designated. it for was which periods reporting financial the throughout effective hedge is the (iii) reliably measured; be can effectiveness (ii) effective; to be assumed hedge is the and relationship, hedging of the documentation and designation formal is hedge there of the inception at the (i) if: only accounting for hedge qualify instruments financial derivative 39, IAS with accordance In management”. risk “Financial 2.2.8.2 section in described policy the see information For further risks. to hedge identified rather but purposes, trading for derivatives purely do not use companies Group to aminimum. default risk reducing of aim the with solid, deemed financially to be counterparties enteredbeen with into have contracts Derivative strategy. hedging risk Group’s for the guidelines financial and standards set which of Directors, S.p.A.’s Board Autogrill approved by Strategy” Financial “Annual the and Policy” Risks Financial and Management “Financial the by governed is of derivatives use The of these. combinations and rate options, interest rate agreements, forward rate swaps, of interest form the in mainly derivatives, financial uses Group the To risks rates. exchange these and interest manage in due to changes risks to financial primarily Group’sThe exposed are liabilities ACCOUNTING DERIVATIVE HEDGE AND INSTRUMENTS FINANCIAL material. is deferral of payment effect financial the if cost, at amortized subsequently and adjustments, billing and returns net of discounts, face value) as same the (normally value at fair recognized Trade payables initially are PAYABLESTRADE method. interest effective the using cost at amortized measured subsequently are and costs, cumulative gain or loss is reclassified from comprehensive income and recognized recognized comprehensive and from income reclassified is loss or gain cumulative The equity. under reserve” “hedging the presented in comprehensive and income in recognized is instrument financial the on loss or gain of the portion effective the loss, or profit affect probable could and highly is that transaction forecast a or liability or asset of arecognized flows cash future the in to variations exposure a hedge against as designated is instrument afinancial hedge: if flow Cash loss; or profit in recognized is and amount carrying its adjusts risk hedged to the item hedged attributable the on loss or gain The statement. income the in recognized hedge is of the accounting value fair subsequent from arising loss or gain the loss, or profit may affect that risk particular to a attributable liability or asset of arecognized value fair the in changes against ahedge as designated is instrument financial aderivative hedge: if value Fair 2. Consolidated financial statements 133 in profit or lossin the same year in which the economic effect the of hedged transaction is recognized. Fair value gains and losses associated with (or a hedge part which has a hedge) become of ineffective are recognized inthe income immediately. Ifstatement or a hedging a hedge relationship is terminated, but the hedged transaction has taken yet the place, not gains or losses accrued up that to time in income the are comprehensive of statement reclassified profit to or loss as soon as the transaction occurs. If the transaction expected is longer no take to theplace, gains or losses realized yet not that been in included have comprehensive income are reclassified immediately profit to or loss; investment: net of Hedge if a derivative is designated as investment a net of a hedge in a foreign operation, directly held or indirectly through an intermediary holding the effectivecompany, portion the of gain or loss on the is hedge recognizedin income andcomprehensive in presented the “translation reserve” under equity, while the ineffective portion is taken profit to or loss. On disposal the of foreign operation, the gain or loss on the effective portion the of that hedge has been cumulatively recognized in the translation reserve is also taken profit to or loss. • If accounting hedge the gains apply, not does or losses arising from measurement at fair value the of financial derivative are immediately recognized in the income statement. AND FORPROVISIONS RISKS CHARGES Provisions are recognized the when Group has obligation a present as a result a past of and willevent use to likely have resources produce economic to in benefits order that satisfy that obligation, and the when amount the of obligation can be reliably determined. Provisions are based on the best estimate the of cost fulfilling of the obligation as the of reporting date, and the when effect is material, are discounted to their value. present An onerous contracts provision is recognized the when costs unavoidable necessary to fulfil the obligations a contract of are greater than the economic benefits the Group can expect obtain to therefrom. The provision is measured the at value present the of the of costlower terminating of the contract and the cost net continuing of with the contract. a provision Before is established, the Group recognizes any impairment losses on the assets associated with the contract. A provision restructuring for is recognized the when Group has a detailed approved and formal restructuring plan, and the restructuring has either commenced or been publicly announced. Future operating costs are provided not for. ANDSHARE PURCHASE CAPITAL OF SHARES TREASURY The share capital is comprised wholly ordinary of shares, which form part equity. of Incremental costs directly attributable the to issue ordinary of shares are deducted from equity, net the of net tax effects. If treasury shares are purchased, the amount paid - including directly attributable expenses and tax of net effects - is from deducted equity. The shares thus purchased are classified as treasury shares and the reduce amount total of equity. The amount fromreceived the subsequent disposal the of treasury equity. shares to back is added Any positive or negative difference from the transaction is transferred or from to earnings. retained EARNINGS SHARE PER Autogrill presents basic and diluted earnings per share its ordinary for shares. Basic earnings per share is calculated by dividing the profit or loss attributable the to ordinarycompany’s by the shareholders number weighted average ordinary of shares outstanding during the period, treasury adjusted for shares Diluted held. earnings per Autogrill Group Annual Report 2018 134 • • • in: resulted acquisition The acquisitions. in employed generally techniques measurement using determined was value fair whose liabilities, CroBag’s and of Le assets acquisition involved the transaction date. The that since consolidated been has Group CroBag Le the 2018 and February place 28 took on deferred to 2019. It E 6.2m debts and company’s the financial paying by discharged E 67.7m, was acquisition of the cost The license. under and includingdirectly E 13.5m both managed Germany), (113 in of them locations 118 has CroBag Le Poland. and Austria Germany, in stations at railway locations &beverage food CroBag Le operate F.F.N. KG GmbH and &Co. CroBag Le companies 100% GmbH, of the which acquired has Group Autogrill GmbH, the Deutschland Autogrill subsidiary the Through LE CROBAG GROUP 2.2.2 BUSINESS COMBINATIONS specified. otherwise year, unless previous the followed those as same the are statements financial for these used criteria estimation The pertain. changes the to which years statement of the income to the taken is change of any effect the and reviewed periodically are assumptions and Estimates charges. and for risks provisions and taxes, employee benefits, depreciation, and amortization obsolescence, for inventory bad debts and provisions of derivatives, value fair losses/reversals, the impairment asset combinations, of business effects the determine to used are Estimates may differ. results date.Actual year-end at the liabilities and assets contingent about disclosure the and income and costs liabilities, assets, of amounts carrying the affect that assumptions and estimates to make management notes requires and statements financial consolidated of the preparation The ESTIMATES OF USE expense. and income statement financial under income the in recognized conversion are the from arising losses and gains Exchange rate. end exchange year at the converted are liabilities and assets date.Foreign currency transaction the on effect rate in exchange at the currency functional the into converted are currencies foreign in Transactions TRANSACTIONS CURRENCY FOREIGN employees. to granted options stock and shares ordinary potential dilutive of all effects for the above, defined as outstanding, shares of ordinary average weighted number the and shareholders to ordinary attributable loss or profit the adjusting by determined is share 19.3m increase in goodwill. goodwill. in a E 19.3m increase years; over 15 amortized to be for E 30.6m, trademark CroBag Le of the recognition the trademark; CroBag Le the and of goodwill Germany in deduction the from benefits tax expected the considering assets, deferred tax in of E 4.9m recognition the 2. Consolidated financial statements - 2.0 8.6 4.9 135 19.3 34.9 33.4 54.2 11.0 (3.1) 44.1 34.9 46.0 46.0 adjusted Le CroBag ------4.9 30.6 35.5 35.5 35.5 30.6 Adjustments to the Adjustments acquisition situation - - 2.9 2.0 8.6 (0.5) 11.0 (3.1) 13.6 10.5 10.5 (0.5) Le CroBag E 48m) and with E 6.2m deferred payment to 2019 Includes the price paid ( Details the of impact the of acquisitionon consolidated assetsand liabilities are below:presented AVILA On 31 August 2018, the U.S. subsidiary HMSHost Corporation acquired Avila Retail through & Management (“Avila”) Development the airport retail firm Stellar Partners, $ 20.2m.for At the time the of acquisition, Avila than had more 60 locations 14 at airports in the United States. The transaction the involved acquisition the of assets and liabilities Avila, of whose fair value was determinate by applying valuation techniques generally used in acquisitions, increasing concessions by E 9,215k 10,883k) ($ and property, plant and equipment by E 4,535k 5,357k). ($ The IFRS 3 revised allows the setting any of additional that items be may detected on the acquisition date, within the 12 month period following the acquisition itself date and the therefore is be to above provisional.considered (*) theThe income for year statement benefits from E 37.4m from in the revenue acquired company. Because the of tax value for purposes the of goodwill and trademark acquired in an amount exceeding their carrying amounts as defined by German tax deferred tax law, assets been recognized have in the amount E 4,924k of (Note XII). G) Total, as inG) D) Cost of acquisition (*) Goodwill Equity attributable to owners of the parent D) NetD) invested capital (A+B+C) C) Other non-currentC) liabilities non-financial and assets F) NetF) debt E) EquityE) Equity attributable to non-controlling interests non-controlling to attributable Equity B) WorkingB) capital Financial assets Financial Intangible assets Intangible Property, plantand equipment A) NonA) current assets (mE) Autogrill Group Annual Report 2018 136 of dividends. payment the and loans with connection in and/or of currency, purchase sale forward the particular in rate risk, entered derivatives to hedge exchange into of the measurement value derivatives” refers fair to the rate hedging of exchange value “fair The of $100m. value notional combined 2017, December at 31 a with outstanding of derivatives measurement value fair of the portion current derivatives” includes the rate hedging of interest value “fair The 2017. 2018 and in payments card for credit of settlements concentration different the by explained is companies” card credit “Receivables from in netThe decrease operations. American to North entirely due is almost increase The earnings. future back with sums the to pay ability of their account taking advances, for capital companies non-subsidiary some and subsidiaries American shareholders North of some non-controlling the from due of amounts primarily consists parties” receivables third from financial “Other ASSETS FINANCIAL OTHER II. overdrafts. account of current balance the with item, along this in change to the contributed that of cash uses and sources various the presents flows statementThe of cash carriers. third-party specialized by handled of pick-ups generally are frequency which for deposit, the on depending substantially may vary amount The accounts. to bank credited of being process the in amounts at and stores floats includes cash hand” on equivalents “Cash and EQUIVALENTS CASH AND CASH I. ASSETSCURRENT 2.2.3  Total derivatives hedging rate exchange of Fair value (Ek) (Ek) Fair value of interest rate hedging derivatives hedging rate interest of Fair value companies card credit from Receivables deposits andBank office post Financial receivables from third parties third from receivables Financial Total Cash and equivalents on hand on equivalents and Cash POSITION NOTES TO THE STATEMENT OFFINANCIAL 31.12.2018 31.12.2018 161,390 161,390 214,699 53,309 53,309 24,513 24,513 36,424 36,424 1,41 471 11, 440 440 - 31.12.2017 31.12.2017 124,053 124,053 169,590 169,590 45,537 45,537 13,665 15,157 15,157 31,213 1,855 1,855 536 536 10,848 10,848 37,337 45,109 45,109 Change Change (3,686) (1,415) 7 2 7 7 7, 5,211 (536) 2. Consolidated financial statements 30 137 573 479 (162) (273) (1,001) 1,708 (1,031) 4,555 Change Change 16,721 (5,006) 14,847 14,847 648 1,750 2,864 (4,677) 48,972 21,920 33,714 12,599 16,420 53,649 40,377 130,292 130,292 31.12.2017 31.12.2017 1,127 2,591 3,458 47,9 71 (5,708) 16,914 20,975 12,437 53,679 34,287 55,224 55,224 147, 013 31.12.2018 31.12.2018 E 15,373k income to and tax 31at refer December 2017) V. TRADE RECEIVABLES V. “Suppliers” amounts to promotional refers for receivable contributions and supplier bonuses awaiting settlement, as as well services advances for be to The received. increase essentially concerns Italian operations. “Lease and concession advance consists payments” lease of instalments paid in advance, as required bycontract. Most the of decrease net “Indirect of taxes” is attributable Italian to operations. from“Receivables grantors commercial to investments” relate for investments made on behalf concession of grantors in accordance with the terms contracts. of The amounts from due the “Sub-concessionaires” item businesses to refer licensed to others and consist mainly receivable. rent of from“Receivables the tax parent for consolidation” concernsthe amount from due Edizione S.r.l. the to Italian companies in the Group that participate in the domestic tax consolidation Section (see scheme 2.2.12 - Other information - Related party transactions). “Other” consists mainly prepayments of maintenance for fees, insurance policies and reimbursements, as as well advances on local taxes, mainly and refer North to America. III. TAX ASSETS TAX III. ( These amount E 19,572k to advances and credits, mostly North for American operations. RECEIVABLES OTHER IV. Receivables from the parent for tax consolidation Personnel Inland revenue and government agencies government and revenue Inland Receivables from grantors for investments Other Sub-concessionaires Lease and concession advance payments advance concession and Lease Total Allowance for impairment Third parties Total Suppliers (Ek) (Ek) Autogrill Group Annual Report 2018 138 monopoly. government sold under goods and products, packaged drinks, raw of food materials, chiefly consist and States, United the and logistics) to handle warehouses centralized uses Group (where the Italy in mostly concentrated are Inventories goods. of slow-moving disposal the on based estimates recoverability revised 2017), considering determined ( of E 1,527k provision write-down net of the year), shown are previous the E 116,202k 2018 (up December from at 31 E 121,611k totalling Inventories, VI. INVENTORIES past. the made in been had bad debt which provisions against year the during of disputes settlement to the refer particularly to E 1,060k, amounting Utilizations, to applicable receivables default general not risk yet receivables due. the and disputed of recoverability to the as estimates revised of 2018 E 1,967k reflect in Net allocations below: shown are “Allowance forMovements the impairment” in past performance. from inferred date as of receivables defaultgeneral not risk yet reporting due the on of the basis the on years, previous in as estimated, been of receivables already has risk 2018), default the 1January since 9(effective to IFRS relation In companies. affiliated with accounts and agreements service to catering refers mainly parties” “Third Allowance for impairment at 31 December 2018 31 at December impairment for Allowance Utilizations differences rate exchange and movements Other use of net Increases, 2017 31 at December impairment for Allowance (Ek) 1,382k at 31 December December at 31 E 1,382k (1,060) 1,967 1,967 4,677 4,677 5,708 5,708 124 124 2. Consolidated financial statements - - Total 139 488 799 (730) 1,548 1,892 (1,041) 55,212 (1,684) (3,270) 54,897 (8,477) 13 7,151 880,916 982,682 151,283 285,341 (40,920) 106,283 (34,043) 246,383 (153,419) (174,738) (143,748) (190,607) (202,451) 2,918,848 3,084,984 3,084,984 2,834,966 2,834,966 (1,954,050) (2,022,315) (2,102,302) ------(4) 39 (77) (62) (77) (905) 4,009 116,178 (11, 76 6) 136,770 116,178 116,6 0 3 221,364 136,847 133,336 133,336 on account (121,929) (203,838) construction Assets under and payments - - - - - (3) (7) (17) 621 160 627 780 504 900 Other (146) (536) (786) (504) (200) 4,818 5,063 1,251 1,243 2,478 (1,474) 54,611 (2,505) (2,449) 52,627 52,473 (47,592) ( 47, 5 6 4 ) (49,793) ------776 396 6,738 4,066 11,617 74,501 19,351 70,454 (3,371) 18,939 (4,070) 33,602 (11,621) (16,561) (15,280) 3 37, 3 4 0 (33,606) 325,956 343,582 (262,839) (280,057) (255,502) transferred Assets to be free of charge - - 940 397 (466) (1,211) (9,815) 7 7,16 3 (1,322) (3,676) 24,135 13,667 33,269 (2,092) 50,322 38,030 46,523 50,304 48,435 181,941 215,332 (47,615) ( 7 7, 3 31) (50,831) (69,429) (40,920) (48,603) 854,791 956,657 842,201 842,201 (741,325) equipment (669,333) (660,260) commercial Industrial and ------27 (27) (44) 7, 7 0 6 1,709 8,283 5,797 3,247 4,858 4,347 3 4, 411 40,241 (1,001) (9,515) 11,0 4 0 (9,322) (9,798) 15,232 (9,066) (5,806) (3,483) Plant and 194,969 194,969 200,143 209,262 209,262 (169,021) (168,912) machinery (165,732) - - - 421 1,027 4,536 1,495 (1,882) 52,164 60,198 (1,642) (1,054) 30,185 69,906 62,945 (3,930) 14,854 56,005 461,824 420,948 (18,503) (99,355) (64,501) Leasehold (95,037) (90,229) 108,080 (52,500) (811,954) ( 747, 675) (778,074) 1,168,623 1,168,623 1,206,715 1,206,715 1,273,778 1,273,778 improvements ------(1) 562 283 565 (395) (267) 1,902 3,859 1,548 2,377 49,196 51,921 (2,561) (1,706) (5,462) (2,556) 14,003 ( 7 7, 317 ) (67,293) buildings Land and ( 17, 5 9 0 ) (78,347) 116, 489 129,238 129,238 132,982 NON-CURRENT ASSETS NON-CURRENT PLANT AND EQUIPMENT VII. PROPERTY, The following in “property, movements plant show tables and equipment” 31 at December and 2018 31 December 2017. Carrying amount December31 2017 December31 2018 Balance December at 31 2018 Disposals losses Impairment Decrease Other movements Other Change in consolidation scope consolidation in Change Acquisitions losses Depreciation/Impairment Balance at 1 January 2017 Disposals movements Other Exchange rate gains (losses) gains rate Exchange Increase Other movements Other Impairment losses Impairment Decrease Exchange rate gains (losses) gains rate Exchange Increase Decrease Other movements Other Balance December at 31 2018 Disposals Balance December at 31 2017 Balance December at 31 2017 Increase Exchange rate gains (losses) gains rate Exchange Increase Disposals Decrease Acquisitions Exchange rate gains (losses) gains rate Exchange (Ek) carryingGross amount Balance at 1 January 2017 Autogrill Group Annual Report 2018 140 level at minimum the with keeping in Europe, southern and Europe Italy, continental in of operations nature centralized integrated, strongly the and structure, redefined Group’s the S.p.A.), of statements Autogrill financial to the report the in 2.2.1 Section end completed of 2017 at the (see reorganization corporate of the consideration In purposes. management for monitored is internal level goodwill at which minimum the with consistently logic, ageographical/operational following segment, business of basis the on (CGUs) identified are units year. cash-generating The previous the of E 795,928k with compared to E 839,666k, amounts 2018 goodwill December 31 At VIII. GOODWILL Report. Directors’ of the section segments” “Business the in discussed are expenditure of capital location and nature The ( to E 6,547k 2018 amount December 31 due after payments lease Future XX). and XVII for E 4,069k ( (non-current) liabilities” financial ( for E 303k (current) liabilities” financial “Other included under is and to E 4,372k payable amounts for goods leased financial The leases: held finance equipment under and plant property, following the of value contractual item includes the this method, financial the with accordance In renewals. contract and for new openings include investments and States United the in mostly concentrated are account on payments and construction under Assets locations. motorway at several and America, North centers in at shopping airports, at development for managed the includes costs of locations This concessions. and premises leased adapt or up to set incurred improvements referLeasehold to expenses each country. with associated risk business specific the of money and cost the reflects which average of capital, cost at the discounted gains), efficiency assumed any incorporating (without for each location flows cash future estimated the on based was testing impairment statements, 2017 financial followed the in method the with Consistently no longer exist. for impairment reasons date) reversal where of the the as cost amortized (up to years historical previous in charged of losses reversal the including of E 8,477k, losses net impairment in resulted locations of individual testing impairment of E 202,451k, to depreciation addition In for E 801k. acquisitions minor other with along 2.2.2, Section in discussed ( refer CroBag for to Le 2018 mostly Acquisitions expenditure. capital of analysis detailed more a contains report directors’ The Belgium. ahotel in and Italy in of awarehouse sale the for mostly of E 5,019k, gains capital produced disposals The E 6,597k. was disposals of amount net carrying the while to E 285,341k, 2018 amounted in expenditure Capital 6,904k at the end of 2017). at the E 6,904k Land and buildings and Land (Ek) equipment commercial and Industrial Total Gross amount 5,536 5,536 6,352 6,352 816 816 and impairment and impairment 31.12.2018 Accumulated depreciation (3,872) (4,439) 8,641k) and Avila ( Avila and E 8,641k) losses 4,200k the previous year) (Notes year) (Notes previous the E 4,200k (567) 292k at the end of 2017) at the “Other E 292k and Carrying Carrying amount 1,664 1,664 1,913 1,913 249 249 4,535k), as as E 4,535k), Gross amount 5,536 5,536 6,144 6,144 608 608 and impairment and impairment 31.12.2017 Accumulated depreciation (3,789) (4,234) losses (445) Carrying Carrying amount 1,747 1,747 1,910 1,910 163 163 2. Consolidated financial statements - 141 7.1% 5.6% 6.9% 6.0% 1,458 43,738 Change 18,241 24,039 Discount rate 2017 7.1% 7. 5 % 6.5% 5.7% 83,631 58,297 795,928 231,216 422,784 31.12.2017 Discount rate 2018 24,486k). E 24,486k). 59,755 83,631 839,666 441,025 255,255 255,255 1.3% 1.0% 2.0% 2.7% 31.12.2018 growth rate “g” Forecast nominal E 19,252k) and exchange differences ( which goodwill internal is monitored for management purposes, the EuropeanCGUs separatelythatconsidered until were been combined have into a single CGU called “Other European countries” (including France, Switzerland, Belgium, Germany, Spain, Austria, Greece, Czech Republic, Poland and The Italian Slovenia). business, although falls it within the European organizational structure by Autogrill headed Europe S.p.A., will continue operate to asa separate CGU given the size and distinctive characteristics the of motorway business under concession. The CGUs are defined therefore as North America, International, and other Italy, European countries. The carrying amounts goodwill of by CGU, as configured are above, as follows: To estimate cash flowsTo the for period 2019-2023, management has several made assumptions, most importantly air of and motorway traffic volumes, future sales, operating costs and capital expenditures. The changes since the previous year are goodwill to due from the acquisition Le of CroBag ( The recoverability the of goodwill allocated CGU each to is tested by estimating its value in use, defined as the value present estimated of future cash flows discounted at differentiateda rate by geographical area reflecting the specific risks theof individual CGUs the at measurement The date. discount was rate set in consideration the of Capital Assets Pricing based Model, on indicators andvariables observable in the market. The estimated future cash flows CGU each the of for period 2019-2023, used to determine amount, recoverable been by approved the have Chief Executive Officer and the Group Chief Financial Officer and reviewed by the Board Directors. of They been estimatedhave on the basis budget and the of forecasts 2020-2023 2019 for forecast(explicit period), and compliance adjusted for with the provisions IAS of 36. Cash flows been projected beyond have 2023 by normalizing information from those forecasts and applying nominal growth which exceed the not do long-term (“g”), rates growth estimates sector and CGU’s country each of operation of with(consistently medium- long-term to inflation forecasts by the International Monetary Fund), and by using the perpetuity method calculate to terminal value. These considerations are also supported by a Fairness Opinion from an third independent company confirming that the chosen methodology is reasonable and appropriate. areBelow the main assumptions used impairment for testing. Other European countries Italy Total Europe North America International North America (Ek) International Italy Other European countries Autogrill Group Annual Report 2018 142 of goodwill. recoverability full the of support in used assumptions of the reasonableness the confirmed also steps These • • as: above, such reported tests stress to the addition in have performed, been simulations Certain 2018. December statement at 31 financial the in amounts carrying of the of impairment no risk is there exogenousendogenous variables, and in trends expected currently of the basis the on that it clear makes simulation This Test). Stress (Impairment value book and CGU’s use the in value between agap longer be no would there rates at which rates growth or discount table shows the following The recoverable. fully to be found was to each CGU attributed of goodwill amount the assumptions, of these basis the On trends. historical with consistent to be assumed are investments maintenance while contracts, of expiration the with development correlated are CGUs, For investments all • • • • segment: business broken below by are down flows cash to estimate used assumptions principal The Italy International America North Europe analysis. related gap the 2017 for 2018 and use with in value CGUs’ the between a comparison grate; rate and discount the in changes well as as CGUs, and countries different the in to plans inherent factors risk specific considering analysis, a sensitivity trends. historical of basis the on estimated was contracts rate of existing renewal The measures. efficiency to targeted of revenue, thanks ashare as to go down expected are costs Operating country. each individual in GDP growth estimated on where not available, and, International Council Airport by provided forecasts on based to country, country from differ that estimates traffic airport and motorway of have basis developed been the on projections sales Countries: European Other for margins. lost help up make will measures, efficiency targeted and offerings improved with along of new concepts, introduction The performance. past with line in traffic, motorway in amoderate increase be should there projections, internal on based Italy: contracts. renewed and new under projects, new up starting and operations of expanding cost the offsets more than sales in rise The operations. of these performance past the with consistent is but markets, Autogrill’s average in the rate outpaces growth assumed The countries. individual the in GDP performance estimated by where not available, and, International Council Airport from forecasts traffic by suggested is growth strong International: of labor. cost the on pressure help upward absorb measures efficiency targeted and sales to higher leverage thanks Operating trends. of historical basis the on estimated was contracts rate of existing renewal The Administration). Federal Aviation the by estimates on (based channel airport the in growth traffic with consistently to rise expected are sales average annual America: North Discount ratenetof 23.4% 10.3% 15.0% taxes 8.6% (18.3%) (4.2%) (3.0%) n.a. g 2. Consolidated financial statements - - 411 719 781 (38) 143 Total (598) (968) (279) (846) 1,996 3,886 4,809 2,440 75,679 51,196 (1,140) 11,20 2 21,651 (8,904) (4,924) (4,885) 22,479 121,221 269,136 261,221 335,601 (11,6 4 6) (25,356) (22,055) (179,932) (214,380) (193,457) ------(331) 8,150 8,150 7, 8 81 6,059 6,059 6,573 5,656 (6,170) account (5,459) Assets under payments on payments on development and development - - - - - 82 29 29 22 (76) (10) 947 (29) (46) Other 7, 5 6 2 3,901 1,758 5,334 2,550 17,9 69 82,217 20,085 98,084 12,081 (1,854) (9,293) (2,624) (8,328) (4,924) 110,155 (80,115) (69,243) (90,070) - - (0) 411 (38) 690 (598) (922) 9,264 1,778 2,358 3,864 9,444 4,780 6,508 51,651 (9,461) 92,986 (5,130) 12,094 (1,064) (8,894) (2,829) (4,856) 43,634 217,296 172,431 164,993 (16,063) (13,727) (113,3 42) (110,689) (124,310) Concessions, and similar rights licenses, trademarks licenses, trademarks IX. OTHER INTANGIBLE ASSETS IX.OTHER INTANGIBLE The following in “Other movements show tables intangible assets” 31 at December and2018 31 December 2017. Investments in came 2018 E 22,479k, to mostly business for software and concession rights, while amortization totalled E 25,356k. 31 December31 2018 Balance December at 31 2018 Carrying amount December31 2017 Other movements Other Gross carryingGross amount Balance at 1 January 2017 Acquisitions Increase Decrease (Ek) Disposals Exchange rate gains (losses) gains rate Exchange losses Impairment Balance December at 31 2018 Exchange rate gains (losses) gains rate Exchange Acquisitions Decrease movements Other Balance December at 31 2017 Disposals Amortization/Impairment losses Balance at 1 January 2017 Disposals Increase Decrease movements Other Increase losses Impairment Exchange rate gains (losses) gains rate Exchange Balance December at 31 2017 Acquisitions (losses) gains rate Exchange Increase Other movements Other Decrease Disposals Autogrill Group Annual Report 2018 144 below: 2017 detailed December 31 are 2018 and December at 31 Investments income. comprehensive of statement the recorded was in losses for exchange E 32k anegative and investments” (expense) statement “Income from under income the in E 13k recognized was anet positive method, equity the using that we report For of thoroughness, sake the investment. the in inherent profitability rata over pro amount investment’s of an carrying surplus Any Group’s the loss. and and of profit share effect exchange the by therefore explained is year for the decrease The method. equity the using measured ventures, joint and of associates comprised item mainly is This INVESTMENTS X. ( CroBag of Le acquisition the with in taken net assets of the value fair the and paid amount the between difference the “Acquisitions” concern for 3, 2018 mostly to IFRS pursuant above and described As All “Other intangible assets” have finite useful lives. lives. useful have assets” finite intangible “Other All of E 598k. losses led to net impairment Note VII, in mentioned testing equipment and plant property, the with conjunction out in carried locations, of individual testing Impairment construction. under of assets completion upon reclassification of the movements” mainly “Other consists acquisitions ( American Name Services. LLC for Host Arab 31 December 201831 December Total Other HSCK Opco L.P. Opco HSCK Bhd. Sdn. Host Dewina L.P. HKSC Developments Caresquick N.V. LLC East. Middle Autogrill

office Registered Doha Winnipeg Kuala Lumpur Winnipeg Antwerpen Abu Dhabi 3,614k). E 3,614k). 33,443k) and Avila ( Avila and E 33,443k) Countries Qatar Canada Canada Malaysia Belgium Emirates Arab United % held 9,215k), as well as other other well as as E 9,215k), 50% 50% 49% 49% 49% 49% Currency equity represents future future represents equity Cad Cad Aed Qar Myr 31.12.2018 Eur Revenues 33,438 25,482 11,615 9,845 ,247 4 2 7, 68 Currency/000 22,933 75,924 15,710 3,609 3,134 assets Total 199 liabilities 50,415 56,615 3,588 1,842 Total 830 131 for theyear Profit/(loss) (1,441) 1,021 % 275 138 13 13 21 /000 - - Carrying Carrying amount 1,891 1,891 1,249 (911) 646 872 13 21 - 2. Consolidated financial statements - 12 26 145 952 957 550 9,605 28,517 3,506 1,746 2,995 37, 815 1,008 4,864 amount Change 75,449 (46,931) Carrying 31.12.2017 - - E 28,517k /000 21 15 % 797 (319) (732) 1,812 Profit/(loss) for the year 5,431 51,050 41 43,728 82,399 33,344 15,420 12,493 (38,671) 715 Total Total 1,141 4,235 31.12.2018 31.12.2017 49,251 39,784 liabilities 122 Total Total assets 2,732 4,088 13,673 32,74 4 60,825 Currency/000 7,17 7 69 42,949 15,488 15,488 20,284 7,9 3 6 4,502 31.12.2018 32,872 10,024 28,656 Revenues Eur 31.12.2017 Myr Qar Aed Cad Cad Currency 49% 49% 49% 49% 50% 50% % held 37,815k at 31 December 2017). “Deferred tax 31 at December liabilities”, 2017). E 37,815k United Arab Emirates Canada Qatar Countries Malaysia Canada Belgium Deferred tax liabilities gross offset for available assets tax Deferred (Ek) Deferred tax liabilities Deferred tax assets non available for offset the previous year). Deferred tax liabilities and tax deferred assets down are as broken follows: shown tax deferred of net assets offset, available ( for amounted E 43,728k to XII. DEFERRED TAX ASSETS AND LIABILITIES AND ASSETS TAX DEFERRED XII. At the 2018, of end “Deferred tax assets” offsettable not against tax deferred liabilities amounted E 51,050k to ( “Interest-bearing sums with thirdparties” consistssecurity of depositson which the interest.Group receives Most the of increase in “Guarantee concerns deposits” amounts deposited in connection with contracts, won newly in particular in the International segment, Spain and Le CroBag, acquired in 2018. “Other financial from third receivables parties” consists primarily amounts of due from the non-controlling some of North shareholders American subsidiaries and some non-subsidiary companies capital for advances, taking account their of ability pay to earnings. future with back sums the XI. OTHER FINANCIAL ASSETS Abu Dhabi Abu Winnipeg Doha Registered office Lumpur Kuala Winnipeg Antwerpen

Guarantee deposits Total Other financial receivables from third parties Interests-bearing sums with third parties (Ek) Autogrill Middle East. LLC HSCK Opco L.P. Arab Host for Services. LLC Name Dewina Host Sdn. Bhd. Developments HKSC L.P. Other Total December31 2017 Caresquick N.V. Caresquick Autogrill Group Annual Report 2018 146 2017. December 31 2018 and December at 31 movements deferred taxes in tables show gross following The Trade receivables benefit employee other and TFR Other assets assets intangible and equipment and plant Property, assets: tax Deferred (Ek) charges and risks for Provision Other liabilities Other Total earnings retained and reserves Other assets intangible and equipment and plant Property, liabilities: tax Deferred liabilities Other benefit employee other and TFR charges and risks for Provision Total tax losses Carry-forward Other assets 31.12.2017 75,449 25,540 25,651 14,828 53,715 19,822 84,746 2,455 4,036 1,571 3,947 1,041 ,042 4 0 7, 257 288 profit andloss Recognised in (5,696) 5,246 3,683 2,362 3,179 5,716 2,217 (934) (853) (113) (161) 353 221 231 416 comprehensive Recognised in other income (356) (106) (462) ------

Exchange rate gains/(losses) (1,592) (1,058) (1,703) 1,337 1,203 (350) (935) (212) 602 935 756 (41) 47 3 7 Consolidation perimeter variation 4,924 4,924 30 30 ------31.12.2018 30,436 30,436 25,296 26,333 26,333 82,399 82,399 1, 7 7 17,9 89,720 571 7 7,18 5 1,504 1,504 2,394 2,394 1,236 1,236 1,872 1,872 3,186 3,186 4,137 4,137 151 151 41 411 2. Consolidated financial statements 147 288 257 7, 0 4 2 1,041 3,947 1,571 4,036 2,455 75,449 84,746 19,822 19,822 53,715 14,828 14,828 25,651 25,540 25,540 31.12.2017 ------variation perimeter Consolidation Consolidation - 2 39 (10) (23) (85) (155) (526) (977) (8,129) (1,015) (6,040) (2,291) (3,563) (5,566) gains/(losses) Exchange rate Exchange rate

------112 (265) (377) income in other in other Recognised Recognised comprehensive comprehensive (7) (15) 318 240 (589) 1,173 1,542 (1,332) (5,341) (1,708) (9,653) (1,434) (14,177) (14,008) (11,38 0 ) Recognised in profit and loss E 10,072k consists 31 at December mainly 2017) paid in rent of advance. 287 886 303 2,135 2,315 9,378 2,872 5,805 9 7, 75 4 23,959 40,971 68,934 22,506 22,460 105,057 31.12.2016 The net increaseThe net E 4,924k includes in tax deferred assets in connection with the acquisition Le of CroBag, considering the tax value for purposes the of goodwill and trademark acquired in an amount exceeding their carrying amounts as defined by German tax law. losses existingTax 31 at December on which 2018 tax deferred assets been not have recognized amount E 216,294k. to The corresponding unrecognized tax benefit would be E 53,312k. As mentioned in the section on accounting standards, tax deferred assets on tax losses are recognized prudently up the to amount that is certain be to recovered. Most the of classified “Other receivables” as current non 31 at December of 2018 E 9,878k ( XIII. OTHER RECEIVABLES OTHER XIII. Trade receivables Trade Deferred tax assets: Property, plantand equipment and intangible assets assets Other (Ek) TFR and other employee benefit Provision for risks and charges Other liabilities Carry-forward losses tax Deferred tax liabilities: Property, plant and equipment and intangible assets assets Other Provision for risks and charges TFR and other employee benefit Total Total Other reserves and retained earnings Other liabilities Autogrill Group Annual Report 2018 148 year. to the pertaining maintenance and utilities for liabilities accrued and suppliers from contributions deferred well as promotional as ( auditors statutory and due to directors includes amounts “Other” heading The added value tax. concerns taxes” “Indirect in change of the Most programs. contribution due defined under payments and institutions security social due to local amount to the refers plans” chiefly contribution defined and security itemThe “Social year. of the quarter fourth the in concentrated typically are Group for the which of investments, pattern seasonal of the because went mainly up expenditure” of capital for additions to suppliers “Due Amounts Italy. force in in agreement” “intergenerational the and benefits retirement due for early amount the reflects expense” “Personnel in change of the Most PAYABLES OTHER XVI. 1986. since Corp. of HMSHost subsidiaries the by States United outside the earned profits on tax one-time of the 2018, in law published tax final of the basis the on recalculation, the by explained is increase The reform. tax of the aresult as subsidiary U.S. for provided the by liability tax income ( of E 8,541k portion non-current The XIII). (Note assets receivables” “Other current under in recognized is S.r.l., Edizione parent, ultimate scheme of the consolidation tax domestic the in participating companies Italian of the balance tax income The credits. net of offsettable year the during accrued taxes ( to E 4,726k amount liabilities tax Current XV. TAX LIABILITIES of products. procurement seasonal for the strategies different and suppliers to of payments timing to the due is primarily year’s of E 351,168k previous balance the to respect with increase The Trade to E 376,460k. payables 2018 came December at 31 XIV. PAYABLES TRADE CURRENT LIABILITIES Total (Ek) Other Withholding taxes taxes Indirect plans contribution defined and security Social expenditure capital of additions for suppliers to Due Personnel expense 4,916k at 31 December 2017) December at 31 refers to the E 4,916k 3,566k at 31 December 2017) December refer at 31 and to E 3,566k 31.12.2018 154,422 369,425 369,425 43,922 43,922 13,459 13,459 32,269 32,269 44,190 44,190 81,163 81,163 E 953k) 953k) 31.12.2017 140,228 140,228 343,773 343,773 44,543 44,543 32,544 75,048 75,048 13,805 13,805 37 5 0 6 7, 3 14,194 14,194 25,652 25,652 Change 6,317 6,317 615 6,115 (346) (353) (275) 2. Consolidated financial statements (1) (6) 11 149 310 778 1,092 Change - 6 411 292 7,202 7,202 6,493 31.12.2017 - 310 410 303 8,294 8,294 7, 2 7 1 31.12.2018 The “Fair value interest of hedging rate the includes derivatives” current portionthe of fair value measurement derivatives of outstanding 31 at December 2018, with a combinednotional value $ 100m. of The non-current portion is listed under “Other financial liabilities” (non-current) (Note 1,367k E XX). for expenses“Accrued and income interest on deferred loans” consists for mainly of interest on the American bond loan contracted by the subsidiary HMSHost Corporation. The “fair value exchange of hedging rate the to fair refers derivatives” value measurement the of into currency hedge to derivatives entered risk, in particular the to forward purchase sale currency, of and/or in connection with intercompany loans and dividends. XVII. OTHER FINANCIAL LIABILITIES FINANCIAL XVII. OTHER Fair valueFair of interest rate hedging derivatives Accruedexpense and deferred income for interest on loans Lease payments dueto others (note VII) (Ek) Fair valueFair of exchange rate hedging derivatives Total Other financial accrued expense and deferred income deferred and accrued expense financial Other Autogrill Group Annual Report 2018 150 *** ** * 2017December presented below: is 31 2018 and December at 31 close at loans” the bank of “Unsecured breakdown The LOANS XIX. 2.2.12). (Section Option 2016 Stock Phantom Wave under due to managers 1of the of amounts liabilities to current reclassification the reflects decrease The plans. contribution defined and incentives long-term for to personnel liability the and CroBag of Le acquisition for the E 6.2m of payment ( to E 29,495k amount These OTHERXVIII. PAYABLES LIABILITIESNON-CURRENT Total Total non-current 2018 Line Commissions on loans on Commissions (Ek) HMSHost Corporation ** - Facility Amortizing Revolving HMSHost Corporation ** - Facility Term Amortizing 2013 Line HMSHost Corporation ** - Agreement Facility Revolving Unsecured bank loans bank Unsecured Total current loans on Commissions loans bank Unsecured overdrafts account Current Autogrill S.p.A. *** S.p.A. Autogrill - Facility Term Amortizing 2018 Line Autogrill S.p.A. *** S.p.A. Autogrill - Facility Revolving 2018 *** S.p.A. Autogrill - Facility Amortizing Revolving 2015 lines Syndicated S.p.A. Autogrill - Facility Revolving 2017 Line S.p.A. Autogrill - Facility Term Loan current portion of net credit of lines Total of which current portion Total Credit line, obtained in January 2018 and used to repay in advance the Revolving Facility of E400m of Facility Revolving the advance in 2018 repay to used and January in obtained line, Credit 2020 March of deadline original with $300m, of loan the repay to used $400m of facility credit anew obtained 2018 Corp. 26 June On HMSHost 2018 2017 31 31 at and December December rates exchange on based measured are currency in Drawdowns

June 2023 June 2023 June Expiry March 2020 March January 2023 January January 2023 January 2023 January March 2020 March 2021August 33,230k at 31 December 2017) December include at adeferred 31 and E 33,230k 200,000 100,000 100,000 150,000 300,000 174,672 174,672 100,000 899,344 899,344 150,000 349,344 Amount 31.12.2018 (Ek) - - - - - Drawdowns 31.12.2018 100,000 150,000 174,672 150,000 152,000 551,672 551,672 174,672 618,880 618,880 551,672 52,000 549,912 549,912 75,000 48,384 48,384 20,584 20,584 75,000 in kE* 68,968 (1,760) ------

31.12.2017 190,434 190,434 236,717 236,717 400,000 453,686 235,442 218,244 150,000 250,146 400,000 160,000 150,000 800,146 640,146 250,146 27 7 9 8 7, 2 Amount (1,275) 31.12.2017 (Ek) (87) - - - - - Drawdowns (169,850) 314,955 314,955 (149,276) 160,000 150,000 314,470 314,470 165,194 160,000 160,000 150,000 20,487 20,487 236,717 396,717 Change 86,717 in kE* 86,717 (485) 87 87 - - - - -

2. Consolidated financial statements 151 775 834 (131) 1,478 Change 533 6,000 6,000 1,267 4,200 31.12.2017 7, 478 1,367 2,042 4,069 31.12.2018 an amortizing term loan and E 100m of a revolving credit lineE 200m, of packaged into a single facility maturing in January 2023. The amortizing term loan involves two annual payments E 25m of starting in January 2021, with reimbursement the of on maturity. E 50m the revolving For line,remaining the commitment will be throughreduced two annual payments as E 62.5m from of January 2021, and the E 75m will of be settled on maturity; commitment remaining a revolving facility maturing E 100m of in January 2023. At 31 December 2018 the Group’s committedAtcredit 31 December facilities the 2018 Group’s had been drawn down by about 61%. AutogrillIn August S.p.A. 2017, had obtained term loan a E 150m maturingin August 2021, used the prepay to partially drawn down amortizing term loan nominal of E 200m thatmature to was due in 2020. In January 2018, Autogrill S.p.A. obtained two credit new facilities: • • The two in facilities February used were prepay, to 2018, the partially drawn down revolving credit line nominal of E 400m that mature to was due in March 2020. loan obtainedThe E 150m in August and the 2017 loans new totalling E 400m, obtained in January 2018, the involve same set covenants of that the apply to loan of E 400m. contractsThe above require the certain Group uphold to financial ratios: a leverage debt/EBITDA)ratio or less and 3.5 (net of an interest ratio coverage (EBITDA/net financial expense) least 4.5, at of referring the to Group as At a whole. 31 December all2018 such satisfied. covenants were confirm Forecasts that they will continue be to the over met next 12 months. On 26 June the 2018 subsidiary HMSHost Corp. obtained loan a new maturing in June 2023, comprised a term of loan and a revolving credit facility, both in the amount $ of 200m. The term two loan involves annual payments starting $ 50m of in January 2020, with reimbursement the of remaining on maturity. $ 50m The two lines used were to theprepay revolving loan nominal of which 300m $ $ 200m has (of been drawn down) ahead its original of maturity. The contract the for facility new contracted by HMSHost Corporation requires to it ratio a leverage (grossuphold debt/EBITDA) or less and 3.5 of interest ratio coverage (EBITDA/net financial expense) least 4.5, at of referring the to solely companies up by HMSHostheaded Corporation. At 31 December all 2018 such covenants were satisfied. confirm Forecasts that they will continue the be to over met next 12 months. the calculationFor these of ratios, and net gross EBITDA debt, and financial charges are measured according contractual to definitions and differ therefore from the amounts valid financial for reporting purposes. Thus, the final ratios are directly not identifiable from the financial statements. As agreed with the lenders, adoption of IFRS will 16 affect not the calculation existing of covenants. XX. OTHER FINANCIAL LIABILITIES Fair valueFair of interest rate hedging derivatives others to due Liabilities Total Lease payments due to others (Note VII) (Ek) Autogrill Group Annual Report 2018 152 covenants. of existing calculation the not affect 16 will of IFRS adoption lenders, the with agreed As months. 12 next the met over to be continue will they that Forecasts confirm were satisfied. requirements contractual 2018 these December 31 At statements. financial the from apparent readily not are they Thus, purposes. reporting for financial valid amounts the from differ therefore and definitions to contractual according measured are charges financial and debt, EBITDA gross ratios, of these For calculation subgroup. its the and Corporation to HMSHost respect solely with calculated of at4.5, least expense) net financial (EBITDA/ coverage ratio interest of 3.5 and less or debt/EBITDA) (gross leverage ratio a ratios: financial of certain maintenance the require bonds for these regulations The year. previous the on no change 7), with IFRS by (as defined hierarchy value level fair in 2of the classified therefore be can They market. open the in observed be can that price than other parameters on based techniques valuation using measured is outstanding bonds of the value fair The XXXII). (Note statement income the on effect zero for asubstantially instrument, hedging the on recognized was amount of similar aloss 2018 and December recorded was at 31 of E 1,308k 2013, again in issued bonds the $100m covering rate hedges of anotional interest the Regarding differences. exchange in E 13,737k reflects earlier. increase The ayear E 290,413k from up to E 303,026k, “Bonds” a whole amounted as 2018, December 31 At • • Corporation: itemThe “Bonds” HMSHost refers by placements to issued private BONDS XXI. subsidiaries. shareholders of certain payables non-controlling to the to financial due refers to others” mainly “Liabilities for XVII). E 310k (Note (current) liabilities” financial “Other included under is portion current The of $100m. value 2017,December notional acombined with 31 2018 and December at 31 outstanding of derivatives measurement value fair of the portion non-current derivatives” includes the rate hedging of interest value “Fair The (Ek) Total Total non-current issues bond on Commissions Bonds (non-current) tranches as summarized in the table below: table below: the in summarized as tranches into split and half-yearly interest 2013 paying of March $200m, forin atotal rate of 5.12%; annual at afixed half-yearly interest paying 2023 and January in 2013 of $150m, for maturing atotal January in 55 Nominal Amount($m) 80 25 40 March 2013March March 2013March March 2013March March 2013March Issue date Annual Fixedrate 5.40% 5.45% 4.75% 4.97% 31.12.2018 304,055 304,055 303,026 303,026 303,026 (1,029) September 2024 September 2025 September 2020 September September 2021 Expiry 31.12.2017 291,577 291,577 290,413 290,413 (1,164) 12,478 12,478 Change 12,613 12,613 12,613 135 135 2. Consolidated financial statements - (61) (35) 153 (591) 6.8% 2017 (495) (236) 1.9% (9,074) (1,108) ( 7, 7 3 0 ) Change Change 29,228 29,228 72,608 ( 7 7, 2 6 3 ) 1% -1.5% 101,836 106,491 1% -2.8% 1.0%-2.5% 31.12.2014 - - Other plans 2018 1.9% 1% -1.5% 33,688 33,688 692 66,507 236 (82,313) 1.3%-1.9% 100,195 1.0%-2.5% 2017 116,001 2,423 1,901 (1,214) 80,110 2 7,9 7 1 51,903 31.12.2015 - - 31.12.2017 1.0% 1.0% 1.0% 0.6% 2017 E 80,110k the at close the of 28,619 90,835 99,076 62,216 - (70,457) 631 31.12.2016 - - 2018 1,310 2,388 (1,709) 71,036 44,173 26,863 Switzerland 1.0% 1.0% 1.0% 1.0% 2018 31.12.2018 44,173k determined on an actuarial basis. 23,117 80,110 56,993 92,547 92,547 (69,430) - - - 31.12.2017 1.5% 2.6% 0.9% 2017 94,741 71,036 Italy - - - 23,046 47,990 47,990 (71,695) 1.1% 1.5% 2.6% 2018 31.12.2018 40,995k, compared withE The discount determined were rates based on the yield corporate of bonds high of standing the at these of date financial statements. areBelow the amounts recognized in the defined income for statement benefit plans: The actuarial assumptions used calculate to defined benefit plans are summarized in the following table: previous year). details shows below benefitsThe table employee of recognized as “Defined benefit plans”. The legal obligation Italian for post-employment benefits (trattamento di fine rapporto or “TFR”) is E The following is a reconciliation the of value present the of obligation and the fair value assetsof against the liability recognized: XXII. DEFINED BENEFIT PLANS BENEFIT XXII. DEFINED At 31 December this 2018 amounted item E 71,036k to ( Defined benefit plans: benefit Defined benefit Post-employment Health insurance plans Past servicePast costs Net interest expense Total (Ek) (Ek) Other defined benefit plans benefit defined Other Present value of the funded plans valueFair of the plan assets Total Present value of the unfunded plans recognised Net liabilities Current service costs (Ek) Inflation rate Discount rate assets on Yield Salary increase rate Pension increase rate Increase in healthcare costs healthcare in Increase Autogrill Group Annual Report 2018 154 follows: as are obligations benefit of post-employment present value Movements the in expense”. “Personnel under recognized is cost benefit post-employment the while assets, plan on net income of interest expense” “Financial under recognized is expense Interest – to: due (gains) losses Actuarial (Ek) Interest expense – Employees' share of contributions of share Employees' – Past service cost cost service Past costs service Current 2016 31at December obligation the of value Present Exchange rate losses/(gains) Benefit paid at 31 December 2018 31at December obligation the of value Present Exchange rate losses/(gains) Benefit paid contributions of share Employees' – – – to: due (gains) losses Actuarial Interest expense cost service Past costs service Current 2017 31at December obligation the of value Present Other Other

demographic assumptions demographic financial assumptions experience adjustments experience adjustments financial assumptions assumptions demographic 44,173 44,173 51,903 51,903 (5,359) 56,508 ,7 ) 7 75 7, ( (1,016) 453 484 Italy (44) 327 106 461 (76) 86 ------Switzerland 90,526 90,526 88,693 88,693 (1,250) (4,145) (5,781) (3,815) 96,788 , ) 8 5 7,9 ( 2,590 2,526 1,704 3,370 2,966 1,632 549 478 597 275 - - - - - Other plans (1,709) (1,541) 8,032 8,032 8,944 8,944 1,068 (346) , 6 9 7,9 (223) (100) (116) 200 563 (37) 756 124 137 719 121 311 64 48 (9) 6 149,540 149,540 142,731 161,292 1,486) (11, 1,795) (11, (1,244) (1,709) (5,170) ,995) 5 9 9 7, ( (1,214) 2,388 2,654 2,850 2,423 1,126 2,574 3,376 1,154 1,195 Total 200 523 795 794 2. Consolidated financial statements - - - 503 495 155 Total 382 0.0% 0.0% 0.0% 0.0% -0.5% 2,574 2,510 1,066 2,869 2,654 3,565 3,453 (2,862) (3,905) (5,906) 69,430 (5,778) 71,695 Belgium 100.0% 70,457 - - - Belgium - - (368) +0.5% 18 73 67 48 64 (55) 396 (90) 368 6.9% 4.5% (125) 21.1% 3,681 2 7. 7 % 39.8% 1,066 4,098 2,268 2,268 Switzerland Other plans - - n.a. 3,010 -0.25% 422 436 3,169 2,510 2,924 2,526 3,085 2,590 65,749 (3,815) (5,781) 67, 59 7 (5,778) 68,189 68,189 (2,880) Switzerland - - Switzerland 453 (2,812) +0.25% ------Italy - - 808 (490) -0.25% Italy - - 497 (784) +0.25% Cash and cash equivalents Equity instruments Equity Bonds Real estateReal Other securities Other This table shows movements inThis the movements shows table value present plan of assets: At the close the the of duration weighted average year, the of defined benefit obligation was 16.6 years, unchanged since 2017. Equity instruments and official bonds have market prices. The occurrence reasonably of possible variations in actuarial assumptions the at of end the year affected would have the defined benefit obligation as quantified in the table. The main categories plan of assets are: Fair value of the December assets at 31 2018 Exchange rate gains/(losses) rate Exchange Employees' share of contributions shareGroup's of contributions paid Benefits Estimated yield on plan assets, except interest interest except assets, plan on yield Estimated income Other Fair value of the December assets at 31 2017 Interest income Interest Exchange rate gains/(losses) rate Exchange Benefits paid Benefits Group's shareGroup's of contributions Estimated yield on plan assets, except interest interest except assets, plan on yield Estimated income Employees' share of contributions Fair value of the December assets at 31 2016 income Interest (Ek) Inflation rate Pension increase rate Salary increase rate Discount rate Autogrill Group Annual Report 2018 156 to E 1,502k. came risks, of existing estimates to changed due released year, for the net of amounts Allocations forecasts. with line in payments, actual concern Group’s of the Utilizations opinions of the advisors. account legal takes and companies, Group against brought lawsuits of losing risk covers the provision This LEGALPROVISION DISPUTES FOR to E 12,899k. came period for the settlements while accidents, regarding forecasts and records of track basis the on provision of this portion current to the allocated was E 11,432k 2018, In basis. annual an on settled plans, insurance in contained liability deductibles third-party on the covering provision “self-insurance” States of aUnited primarily consist These OTHER PROVISIONS operations. American relates year to North the releaseThe during Group’s XXX). of the (Note advice the advisors tax reflect and obligations tax indirect and direct companies’ over U.S. to disputes relates primarily portion current The TAXES FOR PROVISION below. described as of provisions release year, to for the the and utilizations and allocations due is to normal change The PROVISIONS CHARGES AND FOR RISKS XXIII. Total provisions for non-current risks and charges and risks non-current for provisions Total provision contracts Onerous provisions Other charges and risks current for provisions Total Provision for the refurbishment of third party assets party third of refurbishment the for Provision disputes legal for Provision Provision for legal disputes legal for Provision provisions Other Total provisions for current risks and charges and risks current for provisions Total disputes legal for Provision provisions Other taxes for Provision taxes for Provision Other provisions Other (Ek) (Ek) Onerous contracts provision contracts Onerous assets party third of refurbishment the for Provision disputes legal for Provision Total provisions for non-current risks and charges and risks non-current for provisions Total 31.12.2016 31.12.2017 23,290 30,341 12,758 13 4 11,38 42,922 18,241 16,768 32,815 6,493 2,090 3,630 2,858 3,294 2,081 1,852 2,376 ,348 4 3 7, 952 movements movements exchange exchange (1,270) (2,412) (3,074) (2,174) 3,691 4,061 Other Other (808) (234) (258) (428) (523) (123) (558) 334 104 146 rate rate and and 36 0 Allocations Allocations 1 32 4 11, 12,948 12,883 14,979 1,450 1,709 1,240 1,267 1,051 4,653 2,382 999 830 893 765 312 - - Reversals Reversals (1,655) (2,277) (3,250) (1,112) (683) (702) (266) (956) (217) (618) (725) (43) (75) (75) - - - - Utilizations Utilizations (12,899) (10,357) (13,581) (5,909) (9,163) (1,006) (1,194) ,065) 6 0 7, ( (640) (427) (602) (302) (674) (128) (30) (42) - - 31.12.2017 31.12.2018 23,290 10,483 12,758 26,975 38,246 16,257 18,241 32,815 6,493 3,630 2,723 8,238 3,051 1,836 2,081 1,852 1,197 952 2. Consolidated financial statements 157 E 13,738k) is the portion Autogrill of S.p.A. profits that cannot be PROVISION FORPROVISION THE REFURBISHMENT OF ASSETS THIRD PARTY This represents the estimated liability ensuring for that leased assets are returned in the contractually agreed condition. ONEROUS CONTRACTS PROVISION This long-term to leases refers or concession agreementson commercial units that are profitablenot enough the cover to has rent. It been updated using projections 31 at December 2018, with the provisions of release units for whose profitability has improved. X XIV. EQUITY in equityMovements during items the year are detailed in the changes of statement in shareholders’ equity. CAPITAL SHARE At 31 December the 2018 share capital Autogrill of S.p.A., fully subscribed and paid in, amounts E 68,688k to and consists 254,400,000 of ordinary shares. At 31 December Schematrentaquattro 2018 S.p.A., wholly owned by Edizione S.r.l., held the of share50.1% capital. RESERVE LEGAL The “legal reserve” ( paid as out dividends, in accordance with art. 2430 the of Italian Civil Code. TRANSLATION RESERVE differencesTranslation are by the generated translation into euros the of foreign currency financial companies statements of consolidated on a line-by-line basis or using the equity method, the of net fair value instruments of designated as “Net Of the increase,investment hedges”. E 12,493k concerns exchange differences rate from the translation financial of statements in foreign currencies and the E 317k change in the fair value instruments of of net designated investment as hedges”, “Net the tax related effect, offset by E 32k the for portion income for comprehensive of investments valued using the equity method (Note X). AND EARNINGS RETAINED RESERVES OTHER These the include profits subsidiaries of distributed not as dividends and the amount inset aside connection with the recognized costs the of stock option plans. Other reserves and retained earnings also unrealized include actuarial gains and the of losses (net tax effect) arising from the remeasurement defined benefit plan assets and liabilities. The change in this was caused item mainly by the allocation reserves to the of 2017 profit on the basis the of Meeting Shareholders’ resolution 24 of and 2018 May by the payment of E 48,300k in dividends. SHARES TREASURY The annual general meeting 24 of 2018, May pursuant arts. to 2357 seq. et the of Italian Civil Code and after revoking the authorization authorized the granted 2017, May on 25 purchase and subsequent disposal ordinary of shares up a maximum to 12,720,000 of shares. At 31 December the 2018 parent owns 181,641 treasury shares with a carrying amount of E 720k and an carrying average amount E 3.96 of per share. Autogrill Group Annual Report 2018 158 effect: tax relative the of comprehensive components and table income shows the following The OTHER INCOME COMPREHENSIVE ( paid net of dividends companies, U.S. ( injections capital ( year of the 2017. profit December due is to the increase of the Most at 31 E 45,371k with compared to E 55,159k, amount interests Non-controlling INTERESTSNON-CONTROLLING operations foreign for differences translation currency Foreign comprehensive income other of share - investee Equity-accounted hedge investment net on Gain/(loss) reclassified to profit or loss be never will that Items to profit or loss or to profit subsequently reclassified be may that Items asset defined benefit (liabilities)/ Remeasurements of the (Ek) income Total other comprehensive 21,589k) made mainly by the non-controlling shareholders of the shareholders of the non-controlling the by made mainly E 21,589k) Gross amount 15,964 16,355 7 8 5 0 17, 703 423 (32) 703 E 33,164k). Tax benefit/ 2018 (expense) (356) (106) (462) (356) (106) - - Net amount 15,964 16,249 16,596 347 (32) 347 317 E 17,815k) and Gross amount (53,384) (52,723) (54,075) 1,352 1,352 (449) (242) Tax benefit/ 2017 (expense) (377) (377) (265) 112 112 - - Net amount (53,384) (53,963) (52,988) (337) (242) 975 975 2. Consolidated financial statements 159 632 965 (190) 3,368 3,368 8,205 2,459 46,229 Change Change Change 14,807 21,900 45,597 122,546 100,646 2017 2017 2017 7, 74 5 1,816 2,298 (1,189) 95,965 40,163 43,943 43,943 395,969 395,969 1,796,885 4,990,594 4,990,594 1,798,074 1,798,074 4,594,625 4,594,625 2018 2018 2018 (557) 5,184 4,757 41,128 15,950 43,753 110,772 417, 8 6 9 5,113,140 1,8 43,114 1,843,671 4,695,271 E 21,135m the previous in year) commissions XXVII. AND SUPPLIES GOODS MATERIALS, RAW The increase in this is correlated item mainly with the growth in Group revenue. The increase in “Income from business and leases” “Affiliation is attributable fees” mainly the to acquired company Le CroBag and its franchised locations. The increase in “Gain on sales property, of plant and equipment” reflects the sale a of warehouse in Italy and in a hotel Belgium. E 20,896m includes “Other revenue” ( from the sale goods of and services which for the Group acts as an (mostly agent cards,telephone fuel and lottery also It income includes tickets). from services, reimbursements from third parties and insurance payments. XXVI. OTHER OPERATING INCOME The increase reflects higher business volumes, specifically in North America and in various countries by HMSHost covered International, as as well theacquisition Le of CroBag in Germany and Avila in the United States. The oil sales fuel of take mainly place rest stops at in Italy and Switzerland. detailsFor the of trend see in Section revenue, 2.2.8 (Segment reporting) and the Directors’ Report. 2.2.4 NOTES TO THE INCOME STATEMENT INCOME THE TO NOTES 2.2.4 REVENUE XXV. was up 2018 as made follows: for Revenue (Ek) Purchases (Ek) Total suppliers from Bonus (Ek) Food & Beverage sales Income from business leases business from Income inventories in Change Total Oil sales fees Affiliation Gain on sales of property, plant and equipment Total Other revenue Other Autogrill Group Annual Report 2018 160 segment. International the and States United the in Group’s of the particularly expansion the operations, item reflects this in increase The LEASES, RENTALS, ROYALTIES AND CONCESSIONS XXIX. 2017). in (41,142 42,353 employees, was full-time of equivalent terms in expressed averageThe headcount, below. 2.2.12 Section in detailed as of Directors, Board tofees the paid and year to the pertaining plans option stock of the portion includes the costs” “Other ( U.S. the in actions efficiency-building 2018 ,and March in Italy in launched agreement” “intergenerational the under incentives retirement early in item includes E 23.4m This States. United the in especially wages, on pressure upward and revenue growth with associated is expense” “Personnel in increase The PERSONNEL EXPENSE XXVIII. Total Employee benefits (Ek) Leases, rentals and concessions (Ek) Other costs contribution security social and Wages Total Royalties 1.6m). E 1.6m). 1,391,249 1,391,249 1,556,983 1,556,983 128,545 756,394 120,128 120,128 876,522 876,522 371 9 7,18 3 2018 2018 1,369,096 1,519,776 1,519,776 713,226 713,226 1434 114,324 1495 114,975 828,201 36,356 2017 2017 14,221 14,221 43,168 43,168 22,153 22,153 48,321 48,321 Change Change 37,207 5,153 5,153 833 833 2. Consolidated financial statements (2) (93) 161 627 (311) 207 342 (287) (848) (576) (820) (254) 1,914 3,413 1,851 1,930 1,833 1,833 1,384 2,401 (1,178) (1,142) 2,884 4,880 (1,346) 17, 6 57 Change 18,476 495 2017 2,170 5,074 1,756 3,256 3,256 4,739 5,700 (1,655) 89,119 13,671 25,991 17, 8 9 9 12,640 3 7, 8 8 3 7 7,9 8 6 37,888 37,888 13,075 39,392 39,392 13,738 18,539 54,369 54,369 28,645 54,008 542,707 488,235 488,235 275 2018 (683) 1,859 3,163 5,416 5,907 1,502 4,737 17,151 26,618 12,823 12,353 12,353 17, 3 9 7 79,819 11, 729 19,283 39,734 30,559 53,432 88,299 56,770 40,772 44,272 506,711 506,711 560,364 In general, the rise in costs reflects the growth business. of The “Advertising” expense increases as a result greater of initiatives boost to sales. and accommodation costsTravel are likewise associated with expanding business. The “Consulting and professional services” expenses includes services for received primarily in Italy and the United States, including E 3.0m in acquisition consulting. The “Sundry materials” the to purchase refers inexpensive of equipment and various to consumables such as uniforms, office supplies, and advertising materials. “OtherThe item services” miscellaneous includes such as items medical check-ups, public relations, general services, and personnel recruitment and training. XXX. OTHER OPERATING EXPENSE (Ek) Utilities Consulting and professional services professional and Consulting Cleaning and disinfections Commissions on credit card payments Maintenance For taxes Impairment losses on receivables (Note V) Storage and transport Advertising Travel expenses servicesBanking Sundry materials Total For legal disputes For onerous contracts For other risks Telephone and postal charges Insurance Surveillance Transport of valuables servicesOther Costs for materials and services Indirect and local taxes local and Indirect Allocation to provisions for risks (Note XXIII) expense operating Other Autogrill Group Annual Report 2018 162 EXPENSE AND INCOME FINANCIAL XXXII. assets. of non-current categories of these recoverability the to measure used criteria and assumptions of the for details IX and notes VII See of asset: type by abreakdown table provides following The China. in malls outlet and Italy, Spain, in concentrated were losses These location. &beverage of each food flows cash projected of the basis ( of E 9,075k amount the in (net losses of reversals) were recognized Impairment 2018. late 2017 in in and investments greater by explained is equipment” and plant for “Property, increase The category: item asset by this table summarizes following The  XXXI. 1,079k in 2017), following tests of the recoverability of carrying amounts on the the on amounts of carrying recoverability of 2017), the tests in E 1,079k following Total income financial Other financial income portion ofIneffective hedging instruments Exchange rate income Assets to be transferred free of charge of free transferred be to Assets Total expense financial Other financial expense hedges rate exchange on differential Interest Exchange rate losses liabilities long-term of Discounting (Ek) Interest expense (Ek) Interest income (Ek) Total equipment and plant Property, assets intangible Other (Ek) equipment and plant Property, assets intangible Other Total expense net financial bonds and loans on paid Fees Total charge of free transferred be to Assets LOSSES DEPRECIATION, IMPAIRMENT AMORTIZATION AND 227 7 07 8 7, 2 2 1 ,71 1 7,17 18 25,356 (29,084) 15,280 15,280 25,937 31,145 2,477 4,407 4,407 9,075 9,075 4,070 4,070 1,106 2,061 2018 2018 2018 2018 598 598 907 279 867 955 678 - - 174,046 174,046 212,662 212,662 22,055 22,055 16,561 16,561 (27,310) 25,342 28,626 1,817 1,817 1,079 1,079 1,177 1,316 (776) 2017 2017 2017 2017 406 997 704 339 918 38 38 58 1 - 13,125 13,125 Change Change Change Change 15,145 15,145 4,847 4,847 (1,281) 2,589 2,589 3,301 3,301 (1,774) 2,477 7996 6 9 7,9 2,519 (127) (310) 560 560 (90) 595 (58) (26) 767 745 37 (1) 2. Consolidated financial statements % 163 28.8% 28.0% 40.2% E 169k in net 2017 (385) 2,176 1,264 E 1,096k in 2017). ( 7, 3 61) 63,827 45,700 ( 7, 3 8 0 ) 44,436 (6,441) % 25.1% 25.9% 28.5% (185) 2018 3,124 9,859 4,431 31,377 34,501 30,327 (8,701) (4,354) 27,879k in current E 27,879k includes E 45,700k in taxes 2017) E 168k the previous CVAE, year). charged operations on French and calculated a benefit E 13,034k of the tax for deferred of release provisions in set aside previous years depreciation for tangible of assets, and a cost E 5,673k of the for one-time tax on income the produced outside United States by the subsidiaries HMSHost of Corp. since 1986. E 44,605k the previous and year) E 3,498k in tax deferred net liabilities ( The increase in financial net expense reflects higher exchange losses with respect to and greater borrowing,2017 partially offset by a reduction in the cost debt, of average from 3.8% 3.4%. to XXXIV. BASICXXXIV. AND DILUTED EARNINGS PER SHARE Basic earnings per share share is calculated profit net of divided by as the the Group’s numberweighted average ordinary of Autogrill S.p.A. shares outstanding during for the period; treasury shares by the held from Group are the excluded therefore denominator. Diluted earnings per share takes account dilutive of potential shares deriving from stock option plans determining when the number shares of outstanding. The new ( • 2018, currentFor taxes a one-time include charge E 4,431k of from the recalculation, on the basis the of final tax published law during the course the of the of one-time year, tax on profits earned the outside United States since 1986 by the subsidiaries of HMSHost Corp. In a tax 2018 in refund was received the 10m) United E 8.5m ($ of States. is theBelow reconciliation between theoretical income tax and recognized income tax: XXXIII. TAX INCOME The balance E 34,501k of ( current taxesIn the 2017, included benefit net the of U.S. tax reform, whose guiding principle the was reduce to corporate tax rate. That benefit for amounts E 7,361k to and2017 is determined as follows: • deferred taxdeferred assets IRAP, in 2017). which is charged on Italian operations and whose basis is essentially EBIT personnel plus expense fixed-term for came E 1,902k to labor, in ( 2018 ( on the and amounted basis value revenue added, of E 1,222k to Theoretical income tax income Theoretical (Ek) Tax concessionTax on the labour cost in the United States Reduced tax due to the direct taxation of minority partners in fully consolidated US joint ventures Net effect of unrecognised tax losses, of utilization of unrecognised prior-year tax losses and the revision of estimates on the taxability/deductibility of temporary differences US tax reform impact differences Permanent CVAE IRAP and excluding tax, Income IRAP and CVAE Recognised income tax Autogrill Group Annual Report 2018 164 * follows: 2017 as December 31 are 2018 and December at 31 position net financial of the Details 2.2.5 NET FINANCIAL POSITION share: per earnings diluted of and basic calculation Below the is effect. therefore have no dilutive will and of new shares issue the 2018 does not entail in launched plan Units Share Performance (no./000) plans option stock in included shares of effect Dilution (no./000) shares outstanding no. of average Weighted ( share per earnings Basic (no./000) shares outstanding no. of average Weighted Note (E parent the of owners to attributable period the for Profit/(loss) (E parent the of owners to attributable period the for Profit/(loss) after dilution (no./000) dilution after outstanding, shares ordinary no. of average Weighted Diluted earnings per share ( share per earnings Diluted I I XXI XIX II XVII XIX XXI XX XI

k) As defined by Consob communication 28 July 2006 and ESMA/2011/81 recommendations (mE) C) B) A) D) G) F) E) J) I) H) K) L) M) N) O) P) Securities held for trading for held Securities Cash equivalents Cash on hand on Cash Cash and cash equivalent (A +BC) (A equivalent cash and Cash Bond issued Bond and loans Bank borrowings, current Current assets financial Net current financial indebtedness (I +ED) (I indebtedness financial current Net +GH) (F indebtedness financial Current liabilities financial Other Bank loans and borrowings, net of current portion current of net borrowings, and loans Bank Bond issued Bond Due to others Non-current financial indebtedness (K +LM) (K indebtedness financial Non-current Net financial indebtedness (J + N) * +N) (J indebtedness financial Net Non-current financial assets financial Non-current Net financial position -total position financial Net k) E /cents.) E /cents.) 254,218 254,218 254,218 68,660 68,660 2018 2018 27.0 27.0 31.12.2018 - (303.0) (549.9) (860.4) (686.6) (671.1) 161.4 161.4 (69.0) 214.7 173.9 (77.3) 53.3 53.3 (0.0) (8.3) 36.4 .5) 5 7. ( 15.5 - 254,138 254,138 254,138 96,176 96,176 2017 2017 37.8 37.8 31.12.2017 - (290.4) (235.4) (218.2) (544.0) (225.4) (556.5) (531.9) 124.1 124.1 (24.6) 45.5 45.5 169.6 (0.0) (6.0) 12.5 .2) 2 7. ( 31.2 - Change (314.5) (328.6) (130.1) (127.1) 149.3 (12.6) 148.2 198.5 37 3 7. 3 (1.5) 45.1 (1.1) 7 8 7. 5.2 3.0 - - 2. Consolidated financial statements 8.5 165 838.0 (51.3) 571.5 309.3 6.2m 36.4m 31.12.2018 Balances as of 9.0 0.9 12.9 20.7 (2.2) 6.5m as of 1 January and 2018) Total movements Total E 7.2m as of 1 Januarynet of accrued 2018) 7.2m 1.5 1.9 0.9 7. 2 m ( (1.1) (0.1) E Other 33.3m as of 1 January 33.3m net of bearing 2018) E 8.3m ( 8.3m 0.5m as of 1 January and “Bonds” for 2018) E movements (6) E 42.9m ( 42.9m 1m ( Non-monetary movements 7.1 0.0 19.1 14.0 (2.0) 27.9m as of 1 January 2018) 27.9m E Currency translation differences (4) 48.4m ( - 20.8m as of 20.8m 1 January and fair value 2018) of hedging derivative instruments for 0.9 E ( 7.9 ) 129.2 136.2 27.5m ( 27.5m Cash Flow (3) 6.7 2.5m as of 1 January 2018) 6m as of 1 January and in the Note 2018) XVII for E E E (41.2) 688.2 426.3 296.4 31.2m as of 1 January and in the Note 31.2m 2018) XI for E 6m as of 1 January 2018) 01.01.2018 7.5m ( 7.5m 0.4m ( E E escrow accounts for E ( The amounts December of “Bank as of 31 loans 2018 and borrowings” include the items listed in the Note XIX, net of current account overdraft amounting E Cash flows from the statement of cash flows of cash and cash equivalents The change is mainly due to the currency translation difference on HMSHost Corp bond in US Dollars The balances December of “Other as of 31 financial 2018 assets” include the items listed in the Note II for E ( The balances December of “Other as of 31 financial 2018 liabilities” include the items listed in the Note XX for E reclassified among “Bank loans and borrowings” for E expense and deferred income for interest on loans, totally amounting E The column “Other movements” includes the provision for accrued interest for the year E Balances as of Most the of increase in financial net position reflects dividend payments, the cost of the Le CroBag and Avila acquisitions, and capital expenditure which the were for year, only partially offset cash by net flow from operating activities. furtherFor comments, see the indicated notes item. each for thereAt are 31 financial December and 2018 31 December 2017, from due receivables parties;related see Section 2.2.12 (“Other information”) details. for RECONCILIATION OF LIABILITIES ARISING FINANCING FROM ACTIVITIES As required by IAS 7 (§44A), the following reconciles table changes in liabilities arising from financing activities, distinguishing betweenthose arising from cash flows and other non-monetary changes. (2) (3) (4) (5) (1) (6) (Em) Total Bank loans and Bank loans and (2) borrowings (1) Other financial assets (5) Other financial liabilities (1) Bonds (1) Autogrill Group Annual Report 2018 166 * adopted. was standard the time at the circumstances and facts on based sell), and to collect comprehensive (hold other income through value fair or collect) to (hold cost of amortized use model for test the business to the according assets financial recognized has company the 9, of IFRS adoption first-time of the light In 3 Level 2 Level 1 Level follows: as levels defined are different The method. valuation by value at fair measured instruments 2017 financial and and 2018 December at 31 category by liabilities and assets down tables break following The 2.2.8.1 FAIR VALUE HIERARCHY 2.2.6  hedging derivatives hedging rate exchange of Fair value value fair at measured assets Financial (Ek) Trade receivables Cash and cash equivalent cash and Cash value fair at measured not assets Financial Other current receivables Other non current receivables current non Other Other financial assets (current) assets financial Other hedging derivatives hedging rate exchange of Fair value (non-current) assets financial Other hedging derivatives hedging rate interest of Fair value value fair at Financial liabilities measured Finance leases leases Finance Unsecured bank loans * loans bank Unsecured Bank overdrafts Bank value fair at Financial liabilities not measured Bonds Bonds others to due liabilities Financial Trade payables Due to suppliers for investments Total 377,000k at 31 December 2018 E377,000k for 31 at December drawndown lines, credit S.p.A. Autogrill to refers value Fair – – – (unobservable inputs). (unobservable data market observable on not based are that liabilities and for assets inputs from prices);from (derived indirectly or (prices) directly either liabilities and assets for the observable are 1that Level included within prices quoted than other inputs liabilities; or assets for identical markets active in (unadjusted) prices quoted AND RISK MANAGEMENT RISK AND FINANCIAL INSTRUMENTS -FAIR VALUE instruments hedging 1,677 1,677 2,087 2,087 FVTPL - 440 440 440 440 410 410 ------1,385,943 1,385,943 303,026 303,026 570,496 570,496 376,460 376,460 214,699 214,699 433,236 Amortised Amortised 48,384 48,384 35,984 35,984 42,949 42,949 81,755 81,755 47971 1 7 7,9 4 81,163 81,163 4,372 4,372 2,042 2,042 9,878 9,878 Carrying amount Carrying cost - - - - - FVTOCI ------1,385,943 1,385,943 303,026 303,026 570,496 570,496 376,460 376,460 433,236 214,699 214,699 42,949 42,949 48,384 81,163 81,163 35,984 35,984 81,755 81,755 47 1 7 9 7, 4 4,372 4,372 2,042 2,042 1,677 1,677 2,087 2,087 9,878 9,878 440 440 440 440 410 410 Total 31.12.2018 Level 1 ------318,695 318,695 377,826 1,677 1,677 Level 2 440 440 410 410 Fair value ------Level 3 ------318,695 318,695 377,826 1,677 1,677 440 440 410 410 Total ------2. Consolidated financial statements ------Total 411 167 533 536 1,855 310,417 304,799 ------Level 3 ------Fair value 411 533 536 Level 2 1,855 310,417 304,799 ------Level 1 31.12.2017 Total 411 533 944 536 2,391 1,267 1,855 4,492 6 7, 2 6 2 2 7, 8 9 7 10,072 48,972 75,048 28,822 33,344 169, 59 0 358,061 351,168 290,413 425,789 1,176,074 ------FVTOCI ------Carrying amount 1,267 4,492 6 7, 2 6 2 2 7, 8 9 7 10,072 48,972 75,048 28,822 33,344 358,061 351,168 169,590 290,413 425,789 1,176,074 Amortised cost ------411 536 944 533 FVTPL - 2,391 hedging 1,855 instruments Fair value refers to Autogrill S.p.A. credit lines, drawndown December at 31 for E 310,000k 2017 *

Fair valueFair of exchange rate hedging derivatives Financial assets not measured Financial liabilities not measured not liabilities Financial at fair value Bank overdrafts at fair value valueFair of interest rate hedging derivatives valueFair of exchange rate hedging derivatives at fair value Cash and cash equivalent at fair value valueFair of interest rate hedging derivatives Financial assets measured Unsecured bank loans * Trade receivables Trade Finance leasesFinance Other current receivables current Other Other financial assets (current) Other non current receivables Bonds Financial liabilities due to others payables Trade Other financial assets (non-current)assets financial Other Total Due to suppliers for investments for suppliers to Due Financial liabilities measured liabilities Financial (Ek) Autogrill Group Annual Report 2018 168 spot and reviews periodic conducting activities, monitoring its in Governance Corporate and Risk for Control, sub-committee complements the unit Audit Internal The responsibilities. roles and employees its of their aware which are in environment constructive and adisciplined to create aims Group the procedures, official and standards Group’straining, the and Through conditions operations. market in changes any to reflect regularly revised are systems corresponding the and policies These limits. those with compliance and risks the monitor and controls, and limits appropriate establish exposed, is Group the to which risks the analyze and Group’sThe to identify designed are policies management risk issues. these on decisions reach informed of Directors Board the helping and system management risk and control Autogrill’s concerning matters into forresponsible looking is sub-committee The Governance. Corporate and Risk for Control, committee asub- formed has which of Directors, S.p.A.’s Board Autogrill with lies system management risk of aGroup supervision and creation for the responsibility overall The • • • risks: following to the exposed is Group The MANAGEMENT 2.2.8.2 RISK FINANCIAL • • follows: as are techniques valuation For specific level the 2, level included in is 3. instrument the data, market observable on based not is inputs significant one more or of the level If included in is 2. instrument the observable, are instrument an value to fair required inputs significant all If estimates. specific entity on possible as rely little as and data market of observable use the maximize that techniques valuation using derivatives) determined is over-the-counter (for market example, active an in not traded instruments of financial value fair The instruments 2financial (b) Level bid price. current the is Group held the by assets financial for the used price market quoted The basis. arm’s an on length transactions market occurring regularly and represent actual prices agency, those and regulatory or service pricing dealer, group, exchange, broker, an from available industry regularly and readily are prices quoted if active as regarded is date.Amarket reporting at the prices market quoted on based is market active an in traded instrument of afinancial value fair The instruments (a) 1financial Level levels. hierarchical different between were no 2018 there transfers In value. of fair approximation areasonable is amount carrying not included when is the liabilities and of assets value fair the on Information liquidity risk. liquidity risk; credit risk; market benchmarking. and ratios Group’s financial risk, credit of the basis the on determined of aspread rate gross interest market a risk-free at flows cash future discounting by estimated was bonds and of loans value fair the 2018; December at 31 considered not significant are risks aforementioned to the adjustments The benchmarking. and ratios financial other and of credit basis the on calculated Group, of the risk credit the account into takes It also data. market observable on based determined counterparty of the risk credit the account into takes value fair This curves. yield observable on based flows cash of future value present the considering estimated been has rate swaps of interest value fair the 2. Consolidated financial statements 169 checks the of controls and risk management procedures and reporting results the to Board of Directors. This exposure section describes the of each to risks the Group’s listed its above, risk objectives and policies, and its means managing of and assessing these risks. Market risk is the risk that the fair value or future cash flows from a financial instrument fluctuate may changes to due in exchange rates, interest or equity rates instrument prices. The aim market of risk management is monitor to these risks and themkeep within along acceptable levels, with their potential impact on the Group’s results and financial position. Autogrill’s financial policy a strong places emphasis on the management and control of market risk, in particular with respect interest to and rates exchange rates, given the borrowings theextent of and Group’s its international profile. RISK RATE INTEREST The aim interest of risk rate management is control to financial expense and its volatility. This entails, through a mix fixed- of and floating-rate liabilities, the predetermination of a portion financialof expense a time to out horizon in keeping with the structure debt, of which in turn must be in line with capital structure and future cash flows. is Where not it possible obtain to the desired risk profile in the capital markets or through banks, is it achieved by using derivatives amounts of and maturities in line with those the of liabilities The derivatives used which to they are refer. mainly interest swaps rate (IRS). Hedging instruments are allocated companies to with significant exposure interest to risk,rate through charging debt a floating (thus rate exposing the Group higher to finance costs if interest rise) rates or a fixed (which rate means that or higher lower bring not interest do rates about a reduction or an increase in the amount payable). Interest hedging rate instruments are accounted as cash for flow in hedges the financial Group statements of companies exposed this to risk. They are recognized under financial assets or liabilities, on a separate line the of of statement income, andcomprehensive in the “Hedging reserve” in equity. net Financial instruments hedging the risk changes of in the fair value liabilities of are accounted as fair for value in hedges the financial Group statements of companies exposed this to risk, and recognized as financial assets or liabilities with a balancing entry in the income statement. At 31 December 2018, fixed-rate including debt, converted fixed-rate to debt by means interestof swaps, rate was 33% the of total compared with 38% the at 2017. of end denominatedGross debt in US dollars amounted $ 578.2m to the at close the of year, including $ 347m in bond loans. Part the of interest risk rate is hedged by fixed-to- floating interest swaps $ 100m, rate classified for as fair value hedges. MARKETRISK Autogrill Group Annual Report 2018 assets and liabilities. and assets hedged of the amount the in change corresponding the is as loss, or to profit taken are liabilities or assets financial currency of hedges of foreign value fair the in Fluctuations liabilities. or assets financial under value at fair recognized are transactions These currency. reporting the than other acurrency in liabilities or assets financial or currency) foreign in denominated investments of equity accounts company’sparent subsidiaries’ its or the in conversion euros into attending risk the (i.e., risk of translation terms in risk to currency exposure significant with to companies allocated are instruments Hedging unchanged. remain rates, interest especially variables, other the that assumption the on based was analysis This 170 of euros): thousands table (in following the in shown have as altered would been year for the profit and 2018 equity December at 31 above currencies, the 10% by against fallen or risen had euro the If currency: below, local detailed in is risk translation Group’sThe to currency exposure euro. the than other currencies in transactions lending from arising of payables currency receivables foreign and in respect in risk of this some to neutralize is management risk of currency objective the circumstances, Under these currencies. non-euro use that to subsidiaries when granted loans, to intragroup respect with remains arisk Such rate risk. exchange minimizing thereby currencies, same the have in conducted to be expense operating other and purchases raw material that dictates policy procurement the countries, these In euro. the than other currencies functional with countries various in operates Group The EXCHANGE RATE RISK E 5.2m. by expense net financial increase 2018 would December at 31 rate hedges outstanding to interest and liabilities and rates to applicable assets interest the in change unfavorable 1-point A hypothetical year: of the close at the debt of $100m to hedge fixed-rate used instruments of financial details the Below are Profit Equity Equity Bond issue Bond issue Bond Bond issue Bond Underlying (Ek) Equity (Currency/000) Profit k$ k$ k$ Notional amount 45,000 30,000 25,000 (28,851) ,38) 318 7, ( +10% 1.145 Usd

September 2024 September 2025 35,262 35,262 8,944 8,944 January 2023 January -10% Expiry (4,800) (515) +10% Average fixed 1.5605 rate received Cad 363,374 363,374 95,071 95,071

2.44% 2.38% 2.24% Usd 5,866 5,866 USD Libor 6months Libor USD USD Libor 6months Libor USD 6months Libor USD 629 629 -10% Floating rate 82,389 82,389 received 8,660 Cad (3,037) (698) +10% 1.1269 Chf

Fair value 37 1 51 6 7, 3 8,869 8,869 3,712 3,712 (424) (510) (743) 853 853 -10% (Ek) Chf 2. Consolidated financial statements - - - - - 1 26 88 (93) (25) 171 (Ek) 324 (194) (292) 7,16 2 9,605 (1,952) 65,451 (1,001) Change 37,337 37,337 14,494 Fair value 2,392 1.1768 1.1768 1.1768 1.1768 1.1426 9.7495 1.1472 1.1363 7. 4 5 6 7 1.3627 6 7, 2 61 10,072 48,972 28,822 33,344 1.14750 314,916 10.4440 124,053 31.12.2017 Forward rate 440 Expiry 9,878 4 7,9 7 1 81,755 42,949 35,984 380,367 161,390 31.12.2018 January 2019 January 2019 January 2019 January 2019 January 2019 January 2019 January 2019 January 2019 January 2019 January 2019 February 2019 February February 2019 February The fairThe value exchange of outstanding hedges rate 31 at December is 2018 shown below: Exposure credit to risk is modest because the Group serves consumers in who pay cash card; this meansor by credit/debit that and trade thus receivables the degree relative of risk is limited of significance in relation total to financial assets. from stem trade catering receivables In most cases, service the Group’s agreements affiliations.and commercial Other (current receivables and non-current) consist mainly amounts of from due Inland and Revenue other government agencies, paid fees in advance, and advances servicesfor or commercial investments on behalf made concession of grantors, for which the degree credit of risk is low. CREDIT RISK CREDIT Credit risk is the risk that a customer or a financial instrument counterparty cause may a financial loss by defaulting on an obligation. arises It principally in relation the to and trade financial receivables Group’s investments. The carrying amount the of financial maximum assets is the exposure Group’s to credit risk,in addition the to value face guarantees of the given for borrowings or commitments third of parties, as detailed in Section 2.2.12. Exposure 31 at December and 2018 was 31 as December follows: 2017 100 100 250 500 900 7, 512 9,000 9,000 8 0,117 33,250 10,000 70,700 Other current financial assets Usd Derivative instruments assets non-currentOther financial Usd receivables Trade receivables current Other Bank and post officeBank and deposits Usd Other non-currentOther receivables Total Usd Cad Sek Dkk Nok Usd Financial assets (Ek) Usd Notional amount (currency/000) Usd Usd Autogrill Group Annual Report 2018 172 conditions. market financial and investments, of financial its liquidity of debt, its the characteristics the activities, investing and operating by absorbed generated or resources Group’s the the up are make elementsThe that liquidity to reputation. its damage risking or excessive charges incurring without time, on to obligations meet its funds sufficient has it always possible, extent to the that ensuring by liquidity manages Group The liabilities. to financial relating obligations to meet the when it proves difficult arises risk Liquidity RISK LIQUIDITY for 6.95%. accounts Ltd., Co. Management Catering Airport Capital Beijing one, largest the receivables, and trade of total 24.15% for account clients ten largest the risk: of credit concentration noThere significant is data. statistical and of historical basis the on calculated genericor impairment due, amount of the all or of part of uncollectability condition objective of an evidence is where there material, if positions, of individual impairment may require which procedures, to local according determined is of Impairment default. risk counterparty’s of the basis the on calculated losses net of impairment recognized are assets Financial Total Other Total Other Trade receivables (Ek) Franchises Trade receivables (Ek) partners Motorway Airlines Franchises Airlines Catering agreements services Catering agreements services Motorway partners Motorway Not expired Not expired 22,730 22,730 25,310 25,310 12,830 12,870 4,240 4,023 1,306 3,594 2,371 1,520 3,518 1,768 1–3 months 1–3 months 15,449 13,257 5,545 1,564 5,496 1,364 2,061 1,094 5,415 3,124 1,921 1,122 3–6 months 3–6 months Expired notimpaired Expired notimpaired 2,264 2,264 2,016 2,016 31.12.2017 31.12.2018 447 246 642 438 350 235 801 694 312 114 6 months– 6 months– 2,434 2,434 2,750 1 year 1 year 1,040 1,100 1,107 161 161 456 271 841 171 36 - Over 1year Over 1year 5,707 5,707 2,359 3,629 1,725 5,026 977 977 708 353 981 - - - 20,429 48,972 48,972 13,641 13,641 19,737 19,737 4, 1 71 47,9 4,506 4,506 4,583 4,583 8,726 8,726 5,387 5,387 4,812 4,812 7 5 3 3 7, 7 8 787 7, Total Total 2. Consolidated financial statements ------5 6 173 533 533 2,969 2,969 3,222 3,222 119,6 48 116,674 237,378 237,378 240,607 Over 5 years Over 5 years Over 5 years Over 5 years ------879 297 706 309 1,367 1,367 54,198 54,198 291,919 718,406 551,672 236,717 165,547 165,547 2–5 years 2–5 years 2–5 years 2–5 years ------4 221 970 271 1,245 1,245 1,733 23,788 21,834 1–2 years 1–2 years 1–2 years 1–2 years ------4 151 785 201 148 584 1 year 1 year 1 year 1 year 6 months– 6 months– 6 months– 6 months– ------51 Contractual cash flows Contractual cash Contractual cash flows Contractual cash flows Contractual cash flows 51 73 108 31.12.2018 31.12.2018 31.12.2017 31.12.2017 1,585 1,404 3–6 months 3–6 months 3–6 months 3–6 months - - - - - 51 72 411 411 720 410 310 81,158 2 7, 8 9 7 74,934 74,934 48,384 20,000 20,000 526,053 526,053 643,093 349,756 376,460 190,434 1-3 months 1-3 months 1-3 months 1-3 months 410 411 Total Total Total Total 944 533 2,087 1,267 1,267 1,677 4,372 2,042 4,492 81,163 2 7, 8 9 7 75,048 48,384 42 7,151 351,168 291,577 291,577 376,460 572,256 572,256 304,055 1,178,600 1,178,600 1,388,732 411 944 410 533 2,087 1,267 1,677 2,042 4,372 4,492 amount amount amount amount 81,163 2 7, 8 9 7 75,048 48,384 Carrying Carrying Carrying Carrying 4 2 7,151 351,168 291,577 376,460 572,256 572,256 304,055 1,178,600 1,178,600 1,388,732 Exposure and maturitydata as the at follows: were close and 2018 of 2017 Lease payments due to others Non-derivative financial liabilities (Ek) Non-derivative financial Non-derivative liabilities (Ek) Derivative financial liabilities (Ek) Derivative financial liabilities (Ek) Trade payables Trade Unsecured bank loans others to due Liabilities Current account overdrafts exchange foreign Forward derivatives Current account overdrafts exchange foreign Forward derivatives Due to suppliers for for suppliers to Due investments Bonds Total Unsecured bank loans Interest rate swap Total Interest rate swap Bonds Liabilities due to others to due Liabilities Lease payments due to others Total Trade payables Trade for suppliers to Due investments Total Autogrill Group Annual Report 2018 174 facilities. central level, by European at the coordinated, and organizations to local assigned typically levers are operational The license. under brands third-party well as as brands proprietary own its serves Group The subsidiaries. its and Corporation HMSHost by Asia and East, Middle the countries, Scandinavian Ireland, Kingdom, United the Netherlands, the America, North in and countries), European other in subsidiaries through and Italy in (directly S.p.A. Autogrill by Europe in conducted is business clientele. The international and alocal serving stations, railway and stops rest motorway at airports, mainly industry, &beverage food the in operates Group The 2.2.8 SEGMENT REPORTING year). previous the ($ 16.2m to $18.8m ($ 37.8m 2017) net to $49.1m profit December in at 31 and amount shareholders’ equity in interests year). of $56m ($ non-controlling The previous 74.7m net profit the and 2017); ($ 2017)December generated 796.5m in revenue they year of for $934.5m the ($ of $206m 167m at net 31 had assets companies these 2018, December 31 At grantor. the fees concession due for responsible to the principally is and companies of these control federal law. and state by maintains Group The regulated is of concessions operation the in (DBE), participation whose Enterprises Business Disadvantaged accredited held by subsidiaries U.S. in to investments refer interests mainly Non-controlling 2.2.7  end of 2017). at the months three and years (three months eight and years three approximately is lines, credit unutilized including 2018, December at 31 bonds and loans of bank average weighted The term months. 12 next met over be the also will covenants their that for 2018 confirm forecasts XIX), (Note section “Loans” the in detailed lines new credit for the As were covenants satisfied. such 2018 all December 31 At whole. a as Group Autogrill to the pertaining figures on calculated are above ratios the which for loans outstanding has S.p.A. Autogrill particular, In beneficiary. the and loan the on depending of companies groupings for different and criteria different with measured are expense). These financial (EBITDA/net coverage ratio interest and EBITDA) (net leverage ratio debt/ the specifically, ratios, financial of certain satisfaction the 2018 require December at 31 outstanding XXI) (Note bonds and XIX) (Note loans The amount. acertain exceeds subgroup HMSHost of the leverage ratio the if S.p.A., Autogrill parent, to the Corporation HMSHost by of dividends distribution the on limits also There are S.p.A. Autogrill by guaranteed not are They Corporation. headed HMSHost by up companies to the respect with solely calculated ratios, financial certain with for compliance call regulations bond The for 6.73%. S.p.A.) l’Italia per (Autostrade supplier leading the and total of the for 10 25.23% account largest the of which suppliers, of concentration no significant is payables, to there trade to exposure regard With INTERESTS DISCLOSURE OFNON-CONTROLLING 2. Consolidated financial statements 13 175 29,352 86,475 121,221 120,976 150,047 839,666 982,682 (34,501) (29,084) (13 0,118 ) (430,701) (236,882) 1,412,102 1,972,921 5,223,912 Consolidated Consolidated - 334 871 8,711 9,0 09 5,236 2,604 70,016 52,296 (1,896) (25,994) Corporate Corporate 7, 8 8 9 8,273 Europe Europe 64,460 762,206 (58,761) 505,790 (81,579) 338,886 350,587 (19 7, 6 55) 2,238,879 2018 31.12.2018 2,704 11,074 17, 3 7 1 24,542 59,755 92,333 5 87, 74 0 126,410 (56,827) 180,533 (35,427) International International 9,134 36,786 709,886 143,609 441,025 (83,070) 534,526 ( 117,9 7 9 ) (228,515) 1,021,471 2,396,959 North America North America Performance is monitored business separately each for unit: Europe, North America, and International (the latter covering Northern Europe, Middle East and Asia). “Europe” consists the of “Italy” and European “other countries” cash generating units, as as well costs European for support. Costs are shown separately “Corporate” for functions, which the include centralized units in charge administration,of financeand control, investor relations, strategic planning, legal and corporate affairs, enterprise risk management, communications, human resources and organization the for Group as a whole. Key information on operating The accounting segments is below. presented policies used segment for reporting are the same as those the applicable to consolidated financial statements. Net working capital Non-current assets Other non-current non financial assets and liabilities Net invested capital Total revenue and other operating income Depreciation, amortisation and impairment losses on property, plant, equipment and assets intangible profit/(loss) Operating Net financial expense Adjustment to the value of financial assets Pre-tax profit tax Income Result for the year Net invested capital at (Ek) Profit & Loss (Ek) Goodwill assets Financial Other intangible assets Property, plant and equipment Autogrill Group Annual Report 2018 176 course. in year the on advances as and year previous the in accrued of amounts fees),(namely concession settlement as both payments of annual aconcentration seeing usually half-year first the with flows, cash by magnified further are trends seasonal Indeed, of generation cash. the or results to predict used not be should and only indications general are shown percentages The  Notes: holidays. due to summer at apeak is year, of the when business months six second the in concentrated are volumes shows that half-year by of 2018 results Abreakdown results. consolidated affects turn in this and businesses, some in seasonal highly Group’sThe is which of travelers, flow closely related are to volumes the 2.2.9 SEASONAL PATTERNS % of full year full % of Profit/(loss) attributable to owners of the parent the of owners to attributable Profit/(loss) year full % of Other intangible assets intangible Other Goodwill Net investedcapitalat(Ek) income operating other revenue and Total Profit &Loss(Ek) (Em) Net working capital working Net assets Non-current Financial assets Pre-tax profit/(loss)Pre-tax year full % of equipment and plant Property, Operating profit/(loss) % of full year full % of intangible assets and equipment plant, property, on losses impairment and amortisation Depreciation, Revenue and liabilities and assets financial non non-current Other Net invested capital capital invested Net Result for the period the for Result Income tax profit Pre-tax assets financial of value the to Adjustment expense financial Net Operating profit/(loss) fuel sales made primarily in Swiss and Italian motorway service areas service motorway Italian and Swiss in primarily made sales fuel include not does revenue operations, on report interim Directors’ the in shown figures the with data compare to order In North America North North America North 2,402,233 (250,454) 1387) (113,897 468,687 422,784 (66,393) 154,891 928,811 1,64 611,96 29,880 ,460 6 4 7, International International (26,963) 172,842 514,523 (55,994) 117,396 90,268 58,297 10,573 13,704 30,870 548 31.12.2017 2017 2,169,443 (167,557) (60,297) (72,735) 314,846 446,568 321,627 674,423 31,625 35,938 Europe Europe 6,324 First 6months 2,105.8 2,105.8 44.8% Full year2018 Corporate Corporate 16.1% 24.2 24.2 1.7 7 11. 9.7% (3.4) (36,450) (5,559) 63,343 68,099 n.s. (146) 334 470 360 803 - - Consolidated Consolidated 5,086,559 1,776,880 1,239,272 (131,702) (405,906) (45,700) (213,741) 4,695.3 4,695.3 Full year ,30) 310 7, 2 ( 185,249 158,736 795,928 880,916 113,036 100.0% 100.0% 100.0% 100.0% 24,357 75,679 150.0 150.0 121.0 121.0 68.7 68.7 797 2. Consolidated financial statements 177 ); E E 5,535k E 12,769k); E 89k); E 74,180k). GUARANTEES GIVEN, COMMITMENTS COMMITMENTS GIVEN, GUARANTEES LIABILITIES CONTINGENT AND E 320,310k and the performance at to referred close 2017) of bonds and E 2,272k be to paid the for purchase two of commercial properties; the value third-party of assets in use ( the value the of assets leased of businesses ( the value goods of on consignment Group locations at held ( commitments service for contracts ( 2.2.11 OPERATING LEASES OPERATING 2.2.11 The Group operates primarily through the following types contract, of concerning motorway rest stops, airports and railway stations, as as well high streets, shopping centers, trade fairs and cultural attractions. CONCESSION AREA With these contracts, the infrastructure operator (motorway or airport) grants a concession a specialized to entity arrange to fuel and provide food & beverage and/or services, authorizing (i) it build to and install, on land owned by the grantor, buildings, plant, furnishings and fittings designed the for sale food of and drink, complementary products and the for groceries distribution and/or fuel, of and (ii) carry to on this business against based payment a fee of on turnover, with certain stipulations regarding the means and continuity service of provision during the business hours established by the grantor. CONTINGENT LIABILITIES At 31 December 2018, contingent there no were liabilities as described in IAS 37. COMMITMENTS Commitments outstanding 31 at December 2018, essentially unchanged since the previous concern: year, • • 2.2.10  2.2.10 GUARANTEES At 31 December the 2018 guarantees given by the Autogrill Group amounted to E 434,138k ( other personal guarantees issuedgrantors of in favor and business counterparties. The increase mainly derives from the issue guarantees of by Autogrill S.p.A. banks to on behalf the of Italian subsidiaries formed as a result the of corporate reorganization inconcluded 2017. • • • The Group has also agreed minimum to future payments under operating leases, as detailed in Section 2.2.11. Autogrill Group Annual Report 2018 178 traffic). rate index or of passenger inflation rent (e.g. due year, for total the period previous the during measured variables certain of basis the on revised periodically or contract, of the life over the fixed be either can that payment minimum annual an be may also there case, latter the In earned. and/or amount of aset revenue may apercentage be feesThe contracts due for these property. the of owner the of objectives business to the according centers, shopping and stations railway cities, in (ii) and to acaterer, turns company, then to which apetrol assigned sub-concessions service or area are where there motorways, along (i) common are of concession kinds These expires. lease the when premises operator, the clear of the must who expense at the and specifications to the according furnished and equipped are premises The of rent. payment against activity for business buildings uses operator the lease, acommercial In company. petrol due the by royalties of the reimbursement operator, entails it also amotorway and company apetrol between contracts concession of afee; for primary payment and of service continuity to ensure obligation the entails business concession the in acompany Leasing equipment. and buildings necessary the and authorization the of both consisting acompany leases afirm cases, other In service. the provides and expenditure capital necessary the incurs operator the case which in licenses, of administrative and to operate authorization of an consists business the cases some In products. beverage and food to serve organized etc. equipment buildings, and/or rights to use operator an allows branches business or abusiness Leasing LEASE COMMERCIAL AND BUSINESS LEASE of operation. hours the and provided to be are services way the the regarding stipulations certain well as as motorway rent to the to pay obligation the accepts firm The users. and/or to motorway beverages and food lubricants and fuel to sell commitment the with Company motorway the with rights access negotiates which Autogrill), (like firm of aprivate hands the in is motorway the along buildings and land of the when ownership exists concession access An ACCESS CONCESSION terminals. for airport case never the almost is this while grantor, to the of charge free transferred be must services of motorway provision for the built assets the contract, of the expiry on Usually, firms. specialized of additional to anumber service each individual sub-assigns then entity, which to asingle assigned is terminal airport or area service motorway entire of an services the for all subconcession the that occurs It frequently 2. Consolidated financial statements 179 2 6 7,13 9 payments 338,791 295,286 368,925 368,925 403,303 403,303 Net future 2,980,903 1, 3 0 7, 4 5 9 minimum lease minimum lease Future 9,276 5,237 2,997 56,006 12,885 15,586 10,025 payment * minimum sub-lease minimum sub-lease 381,810 270,136 418,890 payments 348,067 300,523 3,036,910 Total future Total 1, 317, 4 8 4 minimum lease minimum lease Refers to part of the sub-concessions granted mainly in the USA and Italy, as agreed with the grantor The table below gives details by due date of the Group’s future gives details below The table minimum the of date by due Group’s payments, i.e. guaranteedfixed and/or fees minimums, the latter based on the variables mentioned asabove 31 of December 2018: * In 2018, the recognized fees in the income amount statement E 756.394k to (Note XXIX) operating for leases (including 483.810kE in guaranteed minimums), net minimums). sub-leases for (including guaranteed in of E 47.929k E 21.054k See Section 2.2.1 with regard the to comparison between commitments lease for instalments and due financial liabilities from the application IFRS of 16. Total 2022 2023 After 2023 2019 2020 2021 Year (Ek) Year Autogrill Group Annual Report 2018 180 * S.p.A. Schematrentaquattro parent, direct its with no transactions had S.p.A. 2018 Autogrill In length. at Company’s arm’s and interest the out in carried are transactions related-party All S.r.l. of Edizione subsidiary awholly-owned is S.p.A. Schematrentaquattro shares. ordinary 50.1% of its owns which S.p.A., Schematrentaquattro by controlled is S.p.A. Autogrill PARTY TRANSACTIONS RELATED 2.2.12 OTHER INFORMATION Edizione S.r.l. Edizione Parent: Income statement(Ek) Other related parties * Equity investments S.p.A. Property Edizione S.r.l. Group Olimpias S.p.A. Verde Sport S.r.l. Group Benetton Group Atlantia parties: related Other Incidence Total Group Total parties Related Other related parties * Equity investments S.p.A. Property Edizione S.r.l. Group Olimpias S.p.A. Verde Sport S.r.l. Group Benetton Group Atlantia parties: related Other S.r.l. Edizione Parent: Statement offinancialposition(Ek) Incidence Total Group Total parties Related The Other related parties refer to transactions with directors and executives with strategic responsibilities strategic with executives and directors with transactions to refer parties related Other The 31.12.2018 5,113,140 7971 47,9 Trade receivables 1,502 1,526 2018 3.2% 0.0% 58 59 Revenue 11 1 8 5 ------31.12.2017 4,990,594 48,972 2,045 2,081 2017 4.2% 0.0% 20 38 44 6 1 8 7 ------31.12.2018 Other operatingincome 110,772 4,013 147, 12,437 18,405 Other receivables 12.5% 4,035 1,636 1,933 2,154 2018 1.9% 479 29 10 ------31.12.2017 130,292 12,599 16,223 95,965 12.5% 1,451 1,673 2,358 2,172 2017 2.5% 529 129 17 9 ------Raw materials,suppliesandgoods 31.12.2018 , 43,114 1,8 376,460 32,038 32,043 Trade payables 2018 8.5% 0.0% 128 128 5 ------31.12.2017 1,796,885 351,168 , 3 6 7,9 2 , 4 6 7,9 2 2017 8.0% 0.0% 162 164 2 1 ------Leases, rentals,concessionsand 31.12.2018 369,425 876,522 80,383 (1,397) 78,986 3,549 4,568 Other payables 2018 1.2% 9.0% 104 915 royalties ------31.12.2017 343,773 828,201 76,835 (1,357) 75,479 2,123 3,146 2017 0.9% 9.1% 893 116 14 ------31.12.2018 Other operatingexpense 560,364 Financial receivables 42,949 16.9% 3,759 ,272 7 2 7, 3,807 ,272 2 7, (386) 2018 0.7% 373 45 16 ------31.12.2017 542,707 33,344 18.8% 6,285 3,027 3,220 6,285 (463) 2017 0.6% 408 178 45 25 ------1,556,983 10,288 10,388 Personnel expense 2018 0.7% 100 ------1,519,776 ,310 7, ,412 7, 2017 0.5% 102 ------Financial (expense)/income (29,084) -0.3% 2018 101 101 ------(27,310) -0.3% 2017 91 91 ------2. Consolidated financial statements ------91 91 181 2017 -0.3% (27,310) ------101 101 2018 -0.3% (29,084) Financial (expense)/income ------102 0.5% 2017 7, 412 7, 310 1,519,776 ------100 0.7% 2018 Personnel expense 10,388 10,288 1,556,983 ------25 45 178 408 0.6% 2017 (463) 6,285 3,220 3,027 6,285 18.8% 33,344 542,707 31.12.2017 ------16 45 373 0.7% 2018 (386) 7, 2 72 3,807 7, 2 7 2 3,759 16.9% 42,949 Financial receivables 560,364 Other operating expense 31.12.2018 ------14 116 893 9.1% 0.9% 2017 3,146 2,123 75,479 (1,357) 76,835 828,201 343,773 31.12.2017 ------royalties 915 104 9.0% 1.2% 2018 Other payables 4,568 3,549 78,986 (1,397) 80,383 876,522 369,425 31.12.2018 Leases, rentals, concessions and Leases, rentals, concessions and ------1 2 164 162 0.0% 8.0% 2017 2 7,9 6 4 2 7,9 6 3 351,168 1,796,885 31.12.2017 ------5 128 128 0.0% 8.5% 2018 Trade payables Trade 32,043 32,038 376,460 1,8 43,114 31.12.2018 Raw materials, supplies and goods ------9 17 129 529 2.5% 2017 2,172 2,358 1,673 1,451 12.5% 95,965 16,223 12,599 130,292 31.12.2017 ------10 29 479 1.9% 2018 2,154 1,933 1,636 4,035 12.5% Other receivables 18,405 12,437 147, 013 110,772 Other operating income 31.12.2018 ------7 8 1 6 44 38 20 0.0% 4.2% 2017 2,081 2,045 48,972 4,990,594 31.12.2017 ------5 8 1 11 Revenue 59 58 0.0% 3.2% 2018 1,526 1,502 Trade receivables Trade 47,9 71 5,113,140 31.12.2018 Incidence Edizione Property S.p.A. investments Equity * parties related Other Related partiesTotal Group Total Incidence Statement of financial position (Ek) Parent: Edizione S.r.l. Other related parties: Atlantia Group Benetton Group S.r.l. SportVerde S.p.A. Olimpias Group S.r.l. Edizione Property S.p.A. investments Equity * parties related Other Related partiesTotal Group Total Income statement (Ek) Parent: Edizione S.r.l. Other related parties: Atlantia Group Benetton Group S.r.l. SportVerde S.p.A. Olimpias GroupS.r.l. RELATED TRANSACTIONS PARTY Autogrill S.p.A. is controlled by Schematrentaquattro S.p.A., which owns its of 50.1% ordinary shares. Schematrentaquattro S.p.A. is a wholly-owned subsidiary Edizione of S.r.l. All related-party transactions are carried in out the interest and arm’s Company’s at length. In Autogrill 2018 S.p.A. had transactions no with its directparent, Schematrentaquattro S.p.A. Autogrill Group Annual Report 2018 182 facilities. at those outlet of an operation for the contract affiliation commercial to the relating “Revenue” of products refers sale to the dello Sport.” -Città Ghirada at “La housed facilities at the sports of youth sponsorship commercial the concerns expense” operating “Other Verde S.p.A.: Sport fees. marketing co- and at stops rest services of fees for cleaning receivables”“Other primarily consist transactions. “Trade same receivables” the “Trade from and payables” originate year. to the pertaining costs refer royalties” accessory fees to and concession and concessions rentals, “Leases, locations. of motorway management to the refers expense” chiefly operating “Other cards). (automatic collection toll group: Atlantia S.r.l. Edizione company consolidating to the 2016 transferred and in withheld taxes for receipt of E 162k the by 2of 201/2011). Law explained is change The 2007-2011 (Art. years for the expense to personnel pertaining tax) (regional of IRAP deductibility of the recognition retroactive of the due aresult as for Nuova E 14k, S.r.l. Sidap and S.p.A. of Autogrill behalf on S.r.l., Edizione company consolidating the by requested refund tax) income (corporate IRES for the receivables”“Other include E 12,423k transactions. same the from payables” originate “Other mostly manager. executive as where he serves S.r.l. back to Edizione paid and S.p.A. of Autogrill adirector by refers expense” to fees“Personnel earned offices. Rome at the premises of equipped use the concerning parent rendered the by income” refers to services operating “Other S.r.l.: Edizione “Other operating income” refers to commissions on sales of Viacards of Viacards sales on income” refers to commissions operating “Other 2. Consolidated financial statements (E) 183 24,041 24,041 448,082 400,000 3,261,100 Other fees 2,813,018 2m the (E) 39,234 benefits 39,234 374,493 335,259 335,259 Non-monetary (E) other 732,183 732,183 incentives 5,190,953 Bonus and 4,458,770 (E) 48,493 83,200 70,000 80,000 90,000 80,000 80,000 60,000 90,000 60,000 520,000 100,000 100,000 1,461,693 1,461,693 Remuneration

from from from from from from 2019 2017 to 2017 to 2019 to 2019 to 2019 to 2019 to 2019 2017/2019 2017/2019 2017/2019 2017/2019 2017/2019 2017/2019 26.01.2017 22.10.2018 25.05.2017 25.05.2017 25.05.2017 25.05.2017 Term of office Term 25.05.2017 to The other remuneration relates to the office of director respectively in Autogrill Europe S.p.A. and15 January Autogrill 2018 Italia S.p.A., from

Director Director Director Director Office held Director Chairman CEO Director Director Director Director Director Director * On 7 February on the 2019, advice the of Human Resources Committee and with input from the Board Statutory of Auditors, the Board Directors of recognize to decided ZannoniPaolo — chairman the of board, co-opted after the death Gilberto of Benetton and elected chairman later this for — a set fee position in addition the to annual remuneration as the of is a member he due Board Directors. of remuneration his includes executiveThe CEO’s salary from Autogrill S.p.A., which is shown According under “Other fees.” the to Board Directors of resolution June 29 of employment, which if governs the the CEO CEO’s resigns2017, with just cause or is dismissed by the Company without just cause, the Company will top up E to standard indemnity in lieu notice of and any other indemnity or leaving compensation inprovided for the national collective managers’ contract the for commercial sector, less thanwhen that amount. Also, strategic the at is he given the role Company, CEO’s bound by a non-compete agreement and a ban on poaching Autogrill Group personnel 18 months,for under a specific agreement that entails a penalty thereof. breach for REMUNERATION OF DIRECTORS AND EXECUTIVESWITH RESPONSIBILITIES STRATEGIC The following remuneration accrued the members of to Board Directors of and to executives with strategic responsibilities in 2018: Key managersKey with strategic responsibilities people) (8 Total directorsTotal Total Elisabetta Ripa * Maria Pierdicchi Cristina De Benetti Catherine Gérardin Vautrin Name Franca Bertagnin Benetton Bertagnin Franca Gilberto BenettonGilberto Gianmario Tondato da Ruos Marco Patuano Ernesto Albanese Ernesto Massimo Fasanella Massimo Fasanella di RuffanoD'Amore * FrancescoChiappetta Paolo Roverato Paolo Alessandro BenettonAlessandro Autogrill Group Annual Report 2018 184 ** * 2018: in Auditors of Statutory Board to of members the fees accrued following The STATUTORY AUDITORS’ FEES force. in plans of the for adescription responsibilities” strategic with executives and for directors plans “Incentive section the See incentives.” other and item “bonuses the included in also is bonus anew employee key hiring management whose hired company 2018 the In incentives.” other and item “Bonuses the included in are indemnities 2019. March Leaving in outcome adefinitive in resulting employee key negotiated, management was of another year, departure the the in Late Autogrill. employment with their employees key management two terminated 2018, In of time. relevant period the rendered during service to the proportional amount an in and program or regulation, each plan, in stated condition other of any satisfaction the and achievement targets to of the the subject abeneficiary, he is of which plans incentive the under remuneration to variable right the retain he shall reason, for any leave CEO office the Should objectives. individual well as as unit, and/or Group for relevant the business objectives the strategic other and targets financial and earnings involving system bonus annual an in year the during participated managers top and CEO the particular, In plans. incentive management in participation of their virtue by of Directors, Board the by advance in established targets achievement to of the specific tied is responsibilities strategic with executives eight the by and CEO received the by compensation variable of the portion A significant Wave in options 2. Wave136,701 in 122,830 options 1and received below, CEO the described plan Units Share Under 2018 Performance the Wave 679,104 in options 1. assigned been has below, CEO described the plan Option Under 2016 Stock Phantom the plan. that under granted Wave of the 3options Wave of his Wave 395,652 1and all and exercised 2options Wave 2018 he in In options Wave 3. in 505,556 options 2and Wave in 565,217 options 1, received below, 883,495 CEO the described plan Option Stock Phantom Under 2014 the Eugenio Colucci Rigotti Maria Giuseppe Marco Name Total Statutory Auditors Statutory Total Antonella Carù ** Catullo Massimo * Colucci Eugenio Other remuneration refers to the office of standing auditor in Autogrill Advanced business S.p.A. business Advanced Autogrill in auditor standing of office the to refers remuneration Other S.p.A. Italia Autogrill and S.p.A. Europe Autogrill in auditors of board the of chairman of office the to refers remuneration Other Standing auditor Chairman held Office Standing auditor Standing auditor Standing auditor 24.05.2018-31.12.2020 01.01.2015-24.05.2018 15.01.2018-31.12.2020 01.01.2018-31.12.2020 01.01.2018-31.12.2020 Term ofoffice Remuneration 179,353 50,000 78,000 31,627 19,726 (E) - Other fees 40,000 15,600 55,600 (E) - - - 2. Consolidated financial statements 81 82 (Ek) 185 263 265 2,176 1,290 Fees Recipient Parent Subsidiaries Subsidiaries Parent Subsidiaries Subsidiaries Service provider auditorsParent's Parent's auditorsParent's auditorsParent's auditorsParent's network auditors Parent's Parent's auditors network auditors Parent's INCENTIVE PLANS DIRECTORS FOR AND EXECUTIVES WITH RESPONSIBILITIES STRATEGIC STOCK OPTION PHANTOM PLAN 2014 On 28 2014, May the general meeting incentive a new approved shareholders of plan as to referred the “2014 Phantom Stock Option The options plan.” are assigned free of charge executive to directors with and employees strategic responsibilities the of its subsidiariescompany and/or the members of or to management team as named, on occasions, or more one by the Board Directors. of This plan, which expires on 30 June 2021, is split into three sub-plans which or “Waves” grant beneficiary each the right option each for exercised, receive, to a gross cash amount equal the to difference between the terminal value and the allocation value of the Autogrill shares (the “Bonus”), subject certain to conditions and in any case not exceeding Specifically, a given cap. the terminal value the of shares is defined as the officialaverage closing price shares the of the at trading each of company’s end session theof Italian Stock Exchange in the month prior and to inclusive the of exercise date, plus dividends paid from the grant until date the exercise. of date The allocation value is defined as the official average closing price shares the of the at of company’s end tradingeach session the of Italian Stock Exchange in the month prior and to inclusive theof allocation date. On July 16 2014, the plan and was implemented the terms 1 and and conditions Wave of 1 (vesting defined. period 2 were Wave from July Under 16 Wave July 2014 2016), a 15 to total 3,268,995 of options assigned. were A total 2,835,967 of options assigned were 2 (vesting periodunder Wave from July 16 July 2014 2017). 15 to On 12 3 (vesting February period under Wave from 2015, 12 February 11 to 2015 February a total 2018), 2,752,656 of options assigned. were 142,867In 2017, options cancelled. were the 2014Under Phantom Stock Option plan, the CEO 883,495 received options in Wave 1, 565,217 2 and options 505,556 in 3. Wave options In in exercised he 2018 all Wave of 2 options and 1 and 395,652 Wave his Wave 3 options granted the of Wave under that plan. INDEPENDENT AUDITORS’ FEES FOR AUDIT AND OTHER OTHER AND AUDIT FOR FEES AUDITORS’ INDEPENDENT SERVICES Type of service Type Auditing Attestation Autogrill Group Annual Report 2018 186 method. binomial the using performed was calculation The rate risk-free of return. the and plan of the term the payments, dividend estimated volatility, date, grant the on of shares value the on based options, stock phantom of the value fair the to calculate hired been has advisor independent external An Wave in options 1. 679,104 assigned been has CEO the plan, Option Under 2016 Stock Phantom the were assigned. options 4,825,428 May 26 2016 from to 25 of May 2019, period atotal avesting With were defined. of Wave conditions and 1 terms the implemented was and plan 2016, the July 26 On date. allocation of the inclusive to and prior month the in Exchange Stock Italian of the session each trading end company’s of at the of the shares price closing average official the as defined is value allocation The date of exercise. the date until grant the from paid plus dividends date, exercise of the inclusive to and prior month the in Exchange Stock Italian of the session end company’s of each trading at the of the shares price closing average official the as defined is shares of the value terminal the cap. agiven Specifically, exceeding not case any in and conditions to certain subject “Bonus”), (the shares Autogrill the of value allocation the and value terminal the between difference to the equal amount cash agross to receive, exercised, for each option right the each beneficiary grant “Waves” or which sub-plans three into split is 2024, June 30 on expires which plan, This of Directors. Board the by one more or occasions, on named, as team management to or of members the and/orcompany subsidiaries its of the responsibilities strategic employees and with directors to executive charge of free assigned are plan.” options The “2016 Option the Stock referred to as Phantom plan of shareholders approved anew incentive meeting general May 26 2016, the On 2016 PLAN PHANTOM OPTION STOCK autogrill.com. at www. public to the available is which 11971/1999, Regulation 7) of Consob (Schedule 3A (1) Annex bis and 84 Art. with accordance in prepared Document Disclosure the in provided is plan Option Stock Phantom 2014 the on information Thorough method. binomial the using performed was calculation The raterisk-free of return. the and plan of the term the payments, dividend estimated volatility, date, reporting the date and grant the on of shares value the on based options, stock phantom of the value fair the to calculate hired been has advisor independent external An below: shown 2017 2018 are in and Movements options in Options at 31 December 2018 31 at December Options 2018 half first the in cancelled Options Options exercized in the first half 2018 half first the in exercized Options 2017 31 at December Options Options cancelled in 2017 in cancelled Options 2017 in exercized Options 2017 1st at January Options (3,054,201) 3,091,901 3,091,901 ,700) 0 0 7 7, 3 ( Wave 1 3,7 0 70 37, - - - Options 1 9017) 0,117 79 (1, 2,846,932 2,846,932 (924,150) (132,665) 924,150 Wave 2 - - (1,849,038) 2,474,594 2,474,594 2,617,441 (142,847) (107,250) 518,286 Wave 3 - 2. Consolidated financial statements - 187 Options (331,107) (385,696) 4,017,207 4,017,207 4,402,903 4,734,010 4,734,010 16.4m cost the included The 2017 adjustment of in 2017). E E 0.4m ( SIGNIFICANT NON-RECURRING EVENTS EVENTS NON-RECURRING SIGNIFICANT AND TRANSACTIONS Options exercized in 2017 Options cancelled in 2017 Options December at 31 2017 Options exercized in the first half 2018 Options cancelled in the first half 2018 Options December at 31 2018 Movements in optionsMovements and in are 2018 2017 shown below: 2.2.13  2.2.13 Except the for corporate reorganization in and completed December effective 2017 as 1 Januaryof Section (see 2018 1.2.2 the of Directors’ Report), during the year there were 2018 PERFORMANCE SHARE UNITS PLAN UNITS SHARE PERFORMANCE 2018 On 24 2018, May the general meeting incentive a new approved shareholders of plan as to referred Performance the “2018 Share The options Units plan.” are assigned free chargeof executive to directors with and employees strategic responsibilities the of its subsidiariescompany and/or the members of or to management team as named, on occasions, or more one by the Board Directors. of whichThe grant plan is split into beneficiary or cycles “Waves” each the right to exchange options Autogrill for stock market performance shares if the and Group’s financial results both satisfy given conditions. On 24 2018, May the plan and was implemented the terms 1 and conditions Wave of (vesting 1 period defined. 2 were Wave from 24and For Wave 2020), May 23 to 2018 May a total 866,032 of options assigned. were A total 789,906 of options assigned were for 2 (vesting periodWave from 24 2021). May 23 to 2018 May An external independent advisor has been hired calculate to the fair value the of options, based on the value shares of on the grant date, volatility, estimated dividend payments, the term the of plan and the return. of risk-free rate The calculation was performed using the binomial method. Thorough information on the Performance 2018 Share Units plan is provided in the Disclosure Document prepared in accordance with Art. 84 and bis Annex (1) 3A (Schedule Consob of 7) Regulation 11971/1999, which is available the to public www. at autogrill.com (/Governance/Shareholders’ meeting). The costs associated with this plan came E 1.9m to in 2018. Thorough information on the Phantom Stock 2016 Option plan is provided in the Disclosure Document prepared in accordance with Art. 84 and bis Annex (1) 3A (Schedule Consob of 7) Regulation 11971/1999, which is available the to public www. at autogrill.com (/Governance/Shareholders’ meeting). The costs incurred in the for 2018 2014 Phantom and Stock 2016 Option plans amounted - to estimates with respect the to provisions 31 at on the made December 2016 basis the of stock market performance Autogrill of shares. Autogrill Group Annual Report 2018 188 2019. March of 14 atstatements meeting its financial consolidated of these publication the authorized of Directors Board The 2.2.16 AUTHORIZATION FOR PUBLICATION Notes. these in disclosures additional or statement figures financial to the adjustment an require would that no events have occurred period, reporting of the close the Since 2.2.15 SUBSEQUENT EVENTS 2006. July of 28 DEM/6064293 Communication Consob by defined as transactions and/or unusual were no 2018 there atypical In 2.2.14 ATYPICAL ORUNUSUAL TRANSACTIONS 2006. July of 28 DEM/6064293 Communication Consob and 15519 2006 of 27 July Resolution Consob by defined as events transactions or non-recurring no significant 2. Consolidated financial statements 189 Autogrill Côté France S.a.s. Autogrill Côté France S.a.s. Autogrill Restauration Carrousel S.a.s. Autogrill S.p.A. Corporation HMSHost Corporation HMSHost Corporation HMSHost Corporation HMSHost Inc. International, Host Inc. International, Host Inc. International, Host Autogrill Schweiz A.G. Autogrill Schweiz A.G. Autogrill Europe S.p.A. Holding de Participations Autogrill S.a.s. Autogrill Côté France S.a.s. Holding de Participations Autogrill S.a.s. Autogrill Belgie NV Autogrill Europe S.p.A. Le Fournil de Frédéric Neuhauser GmbH Le CroBag GmbH & Co KG DeutschlandAutogrill GmbH Autogrill Europe S.p.A. RestaurantsAC & Hotels Beheer N.V. Autogrill DeutschlandAutogrill GmbH Shareholders Schematrentaquattro S.p.A. Schematrentaquattro Autogrill Italia S.p.A. Autogrill S.p.A. Autogrill S.p.A. Autogrill S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. Autogrill Europe S.p.A. % held at % held at 1.1300% 0.0100% 31.12.2018 50.1000% 99.9900% 99.9900% 98.8700% 54.3300% 73.0000% 50.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% - - - - - 1,000 1,000 1,000 8,000 25,565 375,000 375,000 904,867 100,000 100,000 205,000 Share capital 1,050,144 2,337,000 1,342,670 7,000,000 7,500,000 3,696,330 1,405,000 3,250,000 1,500,000 1,000,000 6,700,000 2,000,000 31,579,526 84,581,920 23,183,000 68,688,000 68,688,000 50,000,000 154,463,000 Eur Eur Usd Usd Usd Usd Usd Usd Usd Usd Chf Eur Eur Eur Eur Eur Chf Chf Pln Eur Eur Eur Eur Eur Eur Eur Eur Eur Czk Eur Eur Pln Eur Eur Eur Currency Marseille Marseille Delaware Delaware Delaware Delaware Delaware Delaware Maryland Delaware Pont-en-Ogoz Marseille Marseille Champs Marseille Marseille Olten Bavois Warsaw Hamburg Antwerpen Antwerpen Novara Novara Novara Novara Novara Gottlesbrunn Prague Lubljana Avlonas Katowice Madrid Munich Hamburg Registered office Autogrill Autoroutes FFH S.àr.l. Autogrill Centres FFH Villes S.àr.l. Corporation HMSHost Inc. International. HMSHost HMSHost USA. LLC Inc. International. Host Inc. HMSHost Tollroads HMS Airport Terminal Services. Inc. Host International of Maryland. Inc. Michigan Host. Inc. Restoroute de la Gruyère S.A. Gruyère la de Restoroute Holding de Participations Autogrill S.a.s. Autogrill Côté France S.a.s. Volcarest S.a.s. Autogrill Restauration Carrousel S.a.s. Société de Gestion Pétrolière Autogrill (SGPA) S.àr.l. Autogrill Schweiz A.G. Restoroute de Bavois S.A. Le CroBag Polska Sp.zo.o. Le Fournil de Frédéric Neuhauser GmbH Autogrill Belgie N.V. RestaurantsAC & Hotels Beheer N.V.

Company Parent Autogrill S.p.A. Companies consolidated line line by Nuova Sidap S.r.l. Autogrill Europe S.p.A. Autogrill Italia S.p.A. Autogrill Advanced BusinessService S.p.A. Autogrill Austria GmbH Autogrill Czech Sro Autogrill D.o.o. Autogrill Hellas Single Member Limited Liability Company Autogrill Polska Sp.zo.o. Autogrill Iberia S.L.U. DeutschlandAutogrill GmbH Le CroBag GmbH & Co KG ANNEXES INVESTMENTS OTHER AND COMPANIES OF CONSOLIDATED LIST Autogrill Group Annual Report 2018 190 Host International of Canada. Ltd. Canada. of International Host Ltd. Pty. Services Host liquidation) (in Shenzhen Host Catering Company. Ltd. liquidation) (in Host International (Poland) Sp.zo.o. Partners.Stellar Inc. Inc. AAI. Islip Tulsa. Inc. of Airfood Anton Inc. Seattle. of Airfood Anton Inc. AAI. Fresno Inc. AAI. Springs Palm Inc. Minnesota. of Airfood Anton Inc. JFK. of Airfood Anton Inc. Newark. of Airfood Anton Anton Airfood. Inc. Inc. Cincinnati. of Airfood Anton Inc. Services Host Inc. Kansas. of International Host Host Services of New York. Inc. New of Services Host Company HMSHost Services India Private. Ltd. Private. India Services HMSHost Ltd. Pty. Concessions Airport Marriott B.V. Schiphol. Horeca Exploitatie Maatschappij Host -Chelsea Joint Venture #3 Venture Joint -Chelsea Host Oy Finland HMSHost B.V. NAG Ltd. Private. Bharath Services Hospitality HMSHost B.V. International HMSHost liquidation) (in Management Consulting Co., Ltd. Enterprise (Shanghai) HMSHost Ltd. Zealand New HMSHost Sdn.Bhd. (Malaysia) Host Ltd. Private. Singapore HMSHost HMS/Blue Ginger Joint Venture Joint Ginger HMS/Blue Company Venture Joint Honolulu HSI Venture Joint Airport Florida Southwest HSI Company Venture Joint Kahului HSI Venture CF&B Joint Airside Host Bush Lubbock Airport Joint Venture Joint Airport Lubbock Bush Host Host/Java Star Joint Venture Venture Joint Star Host/Java Host/LJA Joint Venture Joint Host/LJA FB. LLC STL D&D Host Venture Joint Enterprises HSI/Tarra Venture Joint Host-Tinsley Host-Chelsea Joint Venture #1 Venture Joint Host-Chelsea Bay Area Restaurant Group Restaurant Area Bay Seattle Restaurant Associates Restaurant Seattle Host/JV Ventures McCarran Joint Venture Joint McCarran Host/JV Ventures

Registered office Vancouver Cairns North Shenzhen Warsaw Florida New York Oklahoma Washington California California Minnesota New York Jersey New Delaware Kentucky Texas Kansas Delaware Balgalore Cairns North Haarlemmermeer Texas Helsinki Haarlemmermeer Karnataka Haarlemmermeer Shanghai Auckland Kuala Lumpur Singapore Texas Hawaii Florida Hawaii Florida Texas Texas Missouri Missouri Florida Florida Texas California Olympia Nevada Currency Cad Aud Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Inr Aud Eur Usd Eur Eur Inr Eur Cny Nzd Myr Sgd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd 100,000,000 668,441,680 75,351,237 11,289,360 2,665,020 8,470,896 1,520,048 Share capital 45,400 25,500 18,090 2,500 1,000 1,000 1,000 2 ------100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 84.0000% 60.0000% 90.0000% 90.0000% 90.0000% 60.0000% 65.0000% 85.0000% 55.0000% 63.8000% 78.0000% 70.0000% 70.0000% 75.0000% 75.0000% 99.0000% 99.0000% 49.0000% 50.0100% 1.0000% 31.12.2018 % heldat Host International, Inc. HMSHost Corporation Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Anton Airfood, Inc. Host International, Inc. Shareholders Host International, Inc. HMSHost International B.V. International HMSHost Host International, Inc. HMSHost International, Inc. Ltd Private India Services HMSHost HMSHost International B.V. International HMSHost B.V. International HMSHost Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. 2. Consolidated financial statements 191 Host International, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Host Havana LAX LLC F&B, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Host International, Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Shareholders Host International, Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host % held at % held at 31.12.2018 50.0100% 51.0000% 51.0000% 51.0000% 51.0000% 71.0000% 76.0000% 75.0000% 75.0000% 95.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 55.0000% 70.0000% 55.0000% 55.0000% 85.0000% 85.0000% 85.0000% 85.0000% 65.0000% 65.0000% 65.0000% 63.0000% 80.0000% 60.0000% 90.0000% 90.0000% 60.0000% 80.0000% 60.0000% 80.0000% 90.0000% 80.0000% 80.0000% 60.0000% 80.0000% 90.0000% 90.0000% 90.0000% 84.0000% 100.0000% 100.0000% ------Share capital Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Currency Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware NorthCarolina Colorado Texas Florida Florida Registered officeRegistered HOST OHM GSO LLC FB. Host JQE RSI LIT LLC FB. Host JVI LLC FB. PDX Host TFC SDF LLC FB. Host JQE RDU LLC CONC D. Host SMI SFO LLC FB. Host Ayala LAS LLC FB. Host JQE LLC CVG FB. Host MBA CMS LAX. LLC Host CMH VDV LLC FB Host LLC FB. TBL TPA Host MBA LAX SB. LLC Host H8 IAH I. FB LLC Host BGV IAH LLC FB. Host MGV IAD LLC FB. Host MGV DCA LLC FB. Host CTI DEN STA. LLC F&B Host MGV DCA LLC KT. Host Aranza Howell DFW B&E LLC FB. Host Howell Terminal LLC A F&B. Host MCA LLC FLL FB. Host MCA LLC SRQ FB. HOST ECI ORD LLC FB. Host Havana LAX TBIT LLC FB. Host Houston 8 IAH Terminal LLC B. HHL Cole's LAX LLC F&B. Host CMS LAX TBIT LLC F&B. Host JQE RDU Prime. LLC Host Havana LAX LLC F&B. Host-CTI DEN II. F&B LLC Host Lee JAX LLC FB. LLC Host/DFW AF. Host-True Flavors Terminal A FB SAT Host PHX LGO LLC F&B. Host-Love Field Partners I. LLC Host LLC ATLChefs JV 5. Host PHX LLC Fox F&B. Host ORF LLC F&B. FDY LLC JV. ATL LTL Host LLC ATLChefs JV 3. Host-CMS SAN LLC F&B. Host GRL LIH LLC F&B. Host/JQ RDU Joint Venture Host CTI Denver Airport Joint Venture Host -Chelsea Joint Venture #4 Company HSI Miami Airport Partners FB Joint Venture Host DEI Jacksonville Joint Venture Autogrill Group Annual Report 2018 192 Host Java DFW MGO. LLC MGO. DFW Java Host FB. LLC GRR DII Host LLC SAN. LAM Stellar FB. LLC SNA SCR Host FB. LLC SAN SCR Host FB LLC ANC Chen Host SAV SCR FB. LLC Host FB. LLC MHT BGI Host FB. T2 LLC LAX LBL Host Stellar Partners Tampa. LLC Tampa. Partners Stellar Company Host SHI PHL FB LLC PHL SHI Host HMSHost Family Restaurants. Inc. Restaurants. Family HMSHost LLC 3SB. VDV DTW Host LLC Partners. Retail MCO Host VDV DTW SB. LLC SB. VDV DTW Host HMSHost Nederland B.V. Nederland HMSHost HMSHost Ireland Ltd. A.B. Sweden HMSHost HMSHost UK. Ltd. UK. HMSHost HMSHost - UMOE F&B Company AS F&B Company -UMOE HMSHost Management Co., Ltd. HMSHost Huazhuo (Beijing) Catering Indonesia) Topas (Autogrill MITRA INTI EMA PT HMSHost Yiyecek Ve Icecek Hizmetleri A.S. Hizmetleri Ve Icecek Yiyecek HMSHost SMSI Travel Centres. Inc. Inc. Centres. Travel SMSI PT Autogrill Indonesia Services Rus Autogrill Company Liability Limited VFS F&B Co. Ltd. Autogrill Hizmetleri A.S. Hizmetleri Ve Içecek Yiyecek Antalya HMSHost HMSHost Motorways. Inc. L.P. Motorways HMSHost LLC Restaurants. Family HMSHost Limited Company Vietnam HMSHost HK Travel Centres L.P. Centres Travel HK GP. Centres Travel Inc. HK Host CEI KSL MSY. KSL CEI Host LLC Stellar Retail Group ATL. LLC Host MCL DFW Bar. LLC DFW MCL Host LLC SB. DFW MCL Host FB. LLC DEN DSL Host FB. LLC DEN HTB Host DFW. LLC Partners Retail Stellar DFW. RSH LLC Stellar Host MCA ATL FB. LLC MCA Host Registered office Delaware Delaware Florida Delaware Delaware Delaware Delaware Delaware Delaware Florida Delaware Maryland Delaware Delaware Delaware Haarlemmermeer Cork Stockholm London Bærum Beijing Jakarta Istanbul Vancouver Jakarta St. Petersburg City Chi Minh Ho Antalya Vancouver Winnipeg Delaware City Chi Minh Ho Winnipeg Toronto Delaware Tampa Delaware Delaware Delaware Delaware Tampa Tampa Delaware Currency Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Eur Eur Sek Gbp Nok Cny Idr Trl Cad Idr Rub Vnd Trl Cad Cad Usd Vnd Cad Cad Usd Usd Usd Usd Usd Usd Usd Usd Usd 104,462,000,000 46,600,000,000 32,317,805,500 80,000,000 13,600,000 10,800,100 16,521,730 2,500,000 2,140,000 Share capital 120,000 1,065 6 0 217, 10,000 2,000 100 ------100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 100.0000% 64.0000% 90.0000% 90.0000% 90.0000% 80.0000% 80.0000% 80.0000% 80.0000% 88.0000% 65.0000% 65.0000% 65.0000% 65.0000% 63.0000% 55.0000% 70.0000% 75.0000% 75.0000% 75.0000% 75.0000% 99.0000% 79.0000% 50.9990% 51.0000% 59.0000% 51.0000% 51.0000% 99.9999% 67.0000% 67.0000% 50.0100% 1.0000% 31.12.2018 0.0001% 0.0010% % heldat Host International, Inc. Partners,Stellar Inc. Host International, Inc. Host International, Inc. Host International, Inc. Host International, Inc. Partners,Stellar Inc. Host International, Inc. Host International, Inc. Shareholders Host International, Inc. Host International, Inc. Partners,Stellar Inc. Host International, Inc. Host International, Inc. HMSHost International B.V. International HMSHost HMSHost International B.V. International HMSHost B.V. International HMSHost Host International, Inc. HMSHost International B.V. International HMSHost HMSHost International B.V. International HMSHost HMSHost International B.V. International HMSHost Host International of Canada, Ltd. Canada, of International Host HMSHost International B.V. International HMSHost HMSHost International B.V. International HMSHost NAG B.V. NAG B.V. International HMSHost HMSHost Nederland B.V. Nederland HMSHost HMSHost Motorways, Inc. Inc. Centres, Travel SMSI SMSI Travel Centres, Inc. Centres, Travel SMSI Inc. Restaurants, Family HMSHost B.V. International HMSHost B.V. International HMSHost HMSHost Motorways, Inc. A.S. Hizmetleri Ve Icecek Yiyecek HMSHost Stellar Partners,Stellar Inc. HK Travel Centres GP, Centres Travel HK Inc. L.P. Motorways HMSHost Host International, Inc. Host International, Inc. Host International, Inc. Partners,Stellar Inc. Partners,Stellar Inc. Host International, Inc. Host International, Inc. Host International, Inc. 2. Consolidated financial statements 193 HMSHost Services India Private Limited Autogrill Middle LLC East, HMSHost International B.V. Inc. International, Host HMSHost Motorways LP HMSHost Motorways LP Autogrill Belgie N.V. Stellar Partners, Inc. Stellar Partners, Stellar Partners, Inc. Stellar Partners, Host Services, Inc. Host Services, Inc. Inc. International, Host Inc. International, Host Host Services, Inc. Inc. Stellar Partners, Stellar Partners, Inc. Stellar Partners, Inc. Stellar Partners, Inc. International, Host Inc. International, Host Inc. International, Host Host Services, Inc. Inc. International, Host Inc. International, Host Inc. International, Host Inc. Stellar Partners, Inc. International, Host Inc. Stellar Partners, Host Services, Inc. Inc. Stellar Partners, HMSHost International B.V. HMSHost Nederland B.V. HMSHost International B.V. HMSHost Nederland B.V. HMSHost International B.V, Inc. Stellar Partners, Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Host International, Inc. International, Host Inc. International, Host Shareholders Host International, Inc. International, Host

% held at % held at 51.000% 49.000% 49.000% 49.000% 49.000% 31.12.2018 1.0000% 50.000% 50.000% 50.0100% 50.0100% 49.9900% 51.0000% 51.0000% 59.0000% 99.0000% 75.0000% 75.0000% 75.0000% 75.0000% 75.0000% 10.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 70.0000% 55.0000% 55.0000% 55.0000% 65.0000% 80.0000% 80.0000% 80.0000% 80.0000% 80.0000% 90.0000% 90.0000% 60.0000% 80.0000% 80.0000% 90.0000% 84.0000% 100.0000% ------100,000 100,000 350,000 200,000 Share capital 1,020,000 Qar Myr Cad Cad Inr Aed Eur Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Usd Rub Cny Usd Usd Usd Usd Usd Usd Usd Mvr Usd Usd Usd Usd Usd Usd Currency Qatar Kuala Lumpur Kuala Winnipeg Winnipeg Bangalore Abu Dhabi Abu Bruxelles Delaware Delaware Delaware Delaware Delaware Delaware Delaware Tampa Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Delaware Russia China Delaware Delaware Delaware Delaware Delaware Delaware Delaware Maldives Delaware Delaware Delaware Delaware Delaware Delaware Registered officeRegistered Arab Host Services LLC Dewina Host Sdn. Bhd. HKSC Opco L.P. L.P. Developments HKSC HMSHost and Lite Bite Pte. Ltd. Autogrill Middle East. LLC Companies consolidated using the equity method: N.V. Caresquick Stellar DCA SLA BNA. LLC HSI MCA BOS LLC FB. Host DCG LLC FB. AUS Host IBC PIE LLC FB. HSI HCL SEA LLC FB. Stellar BDI PIE. LLC Stellar DCA BNA. LLC Stellar LAM PHX. LLC Host NMG EWR SB. LLC Host PHE LDL LLC MCO FB. Host AAC SFO LLC FB. HSI MCA LBL LAX T6-TBIT. LLC Host LDL LLC MCO FB. Host WSE SJC LLC FB. Host LDL LLC FB. BWI Stellar DCGG DOC1 DEN. LLC Host LPI SEA LLC FB. Stellar MGV LLC BWI. HSI MCA MIA SB. LLC Stellar PHL. LLC Stellar Retail Group PHX. LLC HMSHost Limited Rus Liability Company HMSHost (Shanghai) Catering Ltd. Co., Management Stellar DML LLC GCG MCO. Host LLC FB. CEG KSL LGA Host TRA LLC BNA FB. STA Host TRA BNA LLC FB. HSI BFF SEA LLC FB. Host IBC LLC MCO FB. Host LLC BGB SCA MSP. HMSHost Maldives Pvt Ltd Host D&D LLC FB. STL 3KG DFW SBC-GAB.Host JAVA LLC Host DEN TGI GD LLC FB. Host LLC FB. DEN TGI STA Company Host SB. DCG LLC ATL Host MCA HLM LLC FB. ATL Autogrill Group Annual Report 2018 Chief Executive Officer Executive Chief Tondato Ruos Da Gianmario 2019 March 14 Milan, 3. 2. 194 1. (as May amended) 1999 14 of 11971 Regulation Attes OF FINANCIAL REPORTING ATTESTATION BY THE CEO AND MANAGER IN CHARGE 3.1 that: confirm We also respect. this in have to come light findings No significant 3.2 • • Art. with accordance in hereby including declare, S.p.A., of Autogrill Reporting of Financial charge in manager as Rossotto Camillo and Officer Tondato Executive Chief as DaRuos Gianmario undersigned, We, the tation about the condensed consolidated financial statements pursuant to Art. 81- to Art. pursuant statements financial consolidated condensed the about tation consolidated financial statements during the course of 2017. course the during statements financial consolidated condensed of the preparation for the procedures accounting and administrative the with due compliance and business; of the characteristics of, to the relation adequacy in the 154- c) b) a) statements: financial consolidated condensed the are exposed. are they to which uncertainties and risks main the with along consolidation, the included in of companies and issuer of the position financial and performance of the includes areliable description report Directors’ the

bis correspond to the ledgers and accounting entries; entries; accounting ledgers and to the correspond 2002; of 19 July Council the and Parliament European 1606/2002/EC of the to Regulation pursuant Union European the endorsed by Standards Reporting Financial International applicable the with accordance in have prepared been companies included in the consolidation; the included in companies of and S.p.A. of Autogrill of operations results and position financial of the view fair and atrue provide (3) and (4) of Legislative Decree no. 58 of 24 February 1998: 1998: February of 24 no. 58 Decree of Legislative (4) and (3) Manager in charge of Financial Reporting of Financial charge in Manager Rossotto Camillo ter

of Consob Consob of 2. Consolidated financial statements 195 EXTERNAL AUDITORS’ REPORT AUDITORS’ EXTERNAL Autogrill Group Annual Report 2018 196 2. Consolidated financial statements 197 Autogrill Group Annual Report 2018 198 2. Consolidated financial statements 199 Autogrill Group Annual Report 2018 200 2. Consolidated financial statements 201 AUTOGRILL S.P.A.

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