DAVIDE CAMPARI-MILANO N.V. ANNUAL

Capital management

i.Capital management Disclosure With regard to capital management, Campari Group has implemented a dividend distribution policy which reflects the Group priority to use its available financial sources mainly to fund external growth via acquisitions. Concomitantly, via the Parent Company Davide Campari-Milano N.V., the Group carries out share buyback programs on a rolling basis intended to meet the obligations arising from share-based payments plans currently in force or to be adopted. The financial requirements deriving from the aforementioned capital management operations are managed dynamically, maintaining an appropriate level of flexibility with regard to acquisition opportunities and funding options, also taking into account the optimal and sustainable level of financial solidity which is monitored on an ongoing basis through the index net debt on EBITDA-adjusted. For the purposes of the ratio calculation, net debt (refer to note 6 viii-‘Reconciliation with net financial debt and cash flow statement’) is the value of the Group’s net financial debt at 31 December 2023, whereas the EBITDA-adjusted relates to the Operating result excluding depreciation and amortisation excluding the separately highlighted components that may be considered non-representative of the current operating results (refer to note 3 vi-‘Selling, general and administrative expenses’ and 5 viii-‘Depreciation and amortisation’) calculated based on the reported value at the closing date of the reference period. At 31 December 2023 this multiple was 2.5 times, compared with 2.4 times at 31 December 2022. The pro-forma index adjusted at 31 December 2022 to take into account the annual effect on EBITDA of the business sale and acquisition of the related last 12 months was equal to 2.2 times and it was considered more consistent in comparative terms with the current year. The increase in the ratio at 31 December 2023 was mainly driven by the increase in the net financial debt, which fully reflected the significant extraordinary capital investments compared with the increase in EBITDA-adjusted.