SOURCE: Altadis

August 30, 2007 09:53 ET

ALTADIS : Altadis first half 2007 results Earnings per share increased 32.4 per cent

MADRID, SPAIN--(Marketwire - August 30, 2007) - Madrid, August 30th, 2007

In the first half of 2007 Altadis had good results mainly due to the strong performance of the Spanish, Moroccan and Middle Eastern cigarette operations, Cuban cigars business and tobacco logistics in Spain. The US cigars business, which was markedly hit by a first quarter difficult market and a weak US dollar, showed an improving trend along the second quarter. Overall performance of the Group during the semester for key profitability indicators was in line with management's expectations.

In February, Altadis announced a corporate reorganisation aiming at addressing at the same time a more rational legal organisation and the improvement of its financial means, tax base and distributable reserves. As per schedule, the Group completed the spin-off of the French logistic activity from Seita's tobacco operations and transformed it into a legal entity, Altadis Distribution France (ADF), which now fully exists. The following step of this corporate reorganisation includes in particular the integration of ADF into Logista, through an exchange of shares. Taking into account the offer presented by Imperial Tobacco Group PLC ("Imperial Tobacco") for the acquisition of Altadis, and its expected timing, Altadis has decided to delay the next step of the corporate reorganisation.

On July 18th, in the context of the consolidation of the world cigarettes industry, Imperial Tobacco presented to the National Securities Market Commission ("CNMV") a request for authorisation of a tender offer for 100 per cent of the share capital of Altadis at a cash price of EUR 50 per Altadis share ("the Offer"), which, after its approval by Imperial Tobacco's general shareholders meeting on August 13th, is subject to two conditions:

- Acceptance of the Offer by at least 80 per cent of Altadis' share capital;

- Removal by Altadis general shareholders meeting of the limitation settled in the bye-laws on the number of votes that Altadis shareholders can cast at a general shareholders meeting and its official registration before the end of the acceptance period.

The Board of Directors of Altadis along with its advisors analysed the Offer and confirmed to Imperial Tobacco that it considers that the price is fair and the Offer is attractive and that, in the absence of a competing offer at a higher price being filed with the CNMV, it will recommend the Offer to Altadis' shareholders.

FINANCIALS

In the first half of 2007, Altadis economic sales stood at EUR 1,938 million (EUR 1,934 million in the first half of 2006). Specifically during the second quarter, the Group posted economic sales of EUR 1,006 million (EUR 1,004 million in 2006).

Disposals impacted slightly negatively economic sales by EUR -1 million, whereas the dollar having been on average 8.1 per cent below last year ($1.33 per euro versus 1.23 in 2006) its translation impact on economic sales was negative by EUR -38 million. Thus, the organic growth of economic sales (i.e. at constant perimeter and dollar) was +2.2 per cent.

Economic sales of the Cigarette Division were EUR 881 million (up by EUR 62 million and 7.7 per cent from EUR 819 million in 2006). Spain, Morocco and the Middle East provided substantial growth to the sales of the Division.

Economic sales for the Cigar Division reached EUR 413 million (down EUR 37 million and -8.2 per cent from EUR 450 million in 2006). The unfavourable exchange rate variation, the challenging market trends in the US and the very strong comparison base of 2006 become the key factors to explain the performance. At constant dollar, cigar economic sales were down -2.2 per cent.

The Logistic Division posted economic sales of EUR 632 million (up EUR 51 million and 8.8 per cent from EUR 581 million in 2006). Spanish market, in both tobacco and general logistics, has been the major driver of this very good performance.

Economic sales reported as Other operations (Aldeasa and corporate overheads), were EUR 103 million (EUR 100 million in 2006). Eliminations stood at EUR -91 million (EUR -16 million in 2006), coming back to the usual evolution during the first semester of each year reflecting the seasonal increase in inventories ahead of holidays.

Group Ebitda for the first half of 2007 increased by EUR 40 million, i.e. +7.2 per cent, to EUR 590 million (EUR 550 million in 2006). The Ebitda margin rate was 30.5 per cent (28.5 per cent in 2006) an increase driven by an improved mix of sales. Specifically during the second quarter, the Group posted an Ebitda of EUR 322 million (EUR 299 million in 2006).

Restructuring generated EUR 25 million of cost savings. The negative impact of disposals on Ebitda over the period was EUR -1 million; the impact of dollar currency translation was negative at EUR -13 million and therefore, the organic growth of Ebitda (i.e. at constant perimeter and dollar) was +9.7 per cent.

The Cigarette Division posted an excellent increase of 33.0 per cent of its Ebitda to EUR 331 million (EUR 249 million in 2006). The EUR 82 million growth is reflecting the improvement of the margin in Spain, in addition to the positive change in the mix of sales and efficiency benefits, as well as a seasonality effect.

The Cigar Division, after a difficult first quarter, showed a very positive reaction during the second one with a significant change of trend, which at constant dollar turned into positive. For the whole semester Ebitda declined EUR -12 million, i.e. -8.7 per cent, to EUR 130 million (EUR 142 million in 2006), reflecting an unfavourable exchange rate evolution during the period, a higher than average comparison base and also tougher competition and a challenging market trends in the profitable US market. At constant dollar, cigar Ebitda was slightly down -1.7 per cent.

Logistics Ebitda increased by 8.7 per cent to EUR 160 million (up EUR 12 million from EUR 148 million in 2006), driven mainly by the improved Spanish tobacco market.

Ebitda of Other operations stood at EUR -4 million (EUR -1 million in 2006). Ebitda eliminations, mostly for intercompany sales of finished goods were EUR -28 million (EUR +13 million in 2006) due to usual holidays' seasonality in the level of inventories.

After depreciation and amortisation of EUR -87 million (EUR -105 million in 2006), the Result from ordinary activity reached EUR 503 million (up 12.8 per cent from EUR 446 million in 2006).

With other expense of EUR -43 million (EUR -57 million in 2006), the Operating result grew to EUR 460 million (EUR 389 million in 2006), an increase of 18.3 per cent.

The Financial result stood at EUR -64 million (EUR -60 million in 2006), mainly due to the increase of the average net debt to EUR 2,491 million as a result of the cash out for the 20 per cent minority stake of Altadis Maroc in August 2006.

Corporate tax amounted to EUR -129 million (EUR -109 million in 2006). The effective tax rate stood at 32.6 per cent (33.2 per cent in 2006). Also a separate recurrent deferred tax benefit of EUR 12 million was booked directly in the balance sheet in conformity with IFRS standards for the booking of tax deductible goodwill and brand amortisation.

Results of associates stood at EUR 4 million (EUR 1 million in 2006).

Minority interests, basically now only within Logista, stood at EUR -24 million (EUR -27 million in 2006). No minorities were booked for JR Cigars because their put option is now reported as liability.

Resulting net income stood at EUR 247 million (EUR 194 million in 2006). Earnings per share were EUR 97.7 cent (EUR 73.8 cent in 2006), an outstanding increase of 32.4 per cent.

The Operating free cash flow generated during the first semester of 2007 was very high at EUR 694 million (EUR 1,083 million in the first semester of 2006, when it was significantly inflated by EUR 436 million due to a one-off change in the payment process applied to excise tax in Italy). As in previous years, Group's cash generation ability is expected to be stronger again in the first half than in the second one.

Net debt was reduced by EUR 382 million to EUR 2,287 million, from EUR 2,669 million as of December 31st, 2006.

The average number of shares outstanding during the first semester of 2007 was 252.8 million, a reduction of 3.9 per cent versus the first semester of 2006. After the cancellation of all the 3.7 million shares held as treasury stock by the Group as of June 30th, 2007, shares outstanding are currently 252.4 million.

As decided by the AGM of June 2007, the Group paid a dividend of EUR 1.10 per share, a 10 per cent increase on the dividend paid in 2006. An interim payment of part of that dividend, EUR 50 cent per share, was made on March 20th, and the rest, EUR 60 cent per share was paid on July 9th. The AGM also authorised the Company to buy back shares up to 5 per cent of the outstanding share capital in accordance with its standard policy. However, after the approach received by Imperial in March, the Company suspended temporarily the execution of the buy back program.

OPERATIONS

Restructuring and savings programs ongoing

Early 2006 the Group considerably amplified its restructuring and savings programs in order to address heavy changes in operations and in the tobacco business environment. They included three tiers:

- the industrial restructuring (launched prior to 2006), providing EUR 64 million savings;

- the savings program launched on February 1st, 2006, with EUR 91 million savings;

- and the latest restructuring, affecting mainly to both corporate functions and business units management, launched on February 14th, 2006, generating EUR 60 million savings.

The total savings are expected to reach EUR 215 million over three years: EUR 145 million savings were achieved in 2006, EUR 46 million are being captured in 2007, as planned, and EUR 24 million are expected to be captured in 2008.

Cigarette Division: Spain, Morocco and Middle East markets led to strong growth

The Group sold 58.9 billion cigarettes during the first half of 2007 (54.2 billion in 2006) amounting to sales of EUR 881 million (EUR 819 million in 2006). The 8.6 per cent increase of volumes is mainly due to a recovery of sales in certain areas such as Russia (with a very low comparison base during the first quarter of last year) and Middle East. The increase of sales is basically due jointly to the volumes, the higher prices in Spain and the good evolution of the Moroccan market.

Segments

Sales of the blond cigarettes segment, which accounted for 75 per cent of the sales of the Cigarette Division stood at EUR 664 million (EUR 605 million in 2006). Sales grew in Spain, France, Morocco, the Middle East and Russia by respectively 20.8 per cent, 2.3 per cent, 25.6 per cent, 24.1 per cent and 11.4 per cent. In Germany, sales improved in the second quarter and slowed down the decline showed during the first one, but markets trends are still weighing against the segments where Altadis products are stronger.

Total market volumes of dark cigarettes in the first half of 2007 dropped by -6.9 per cent in Spain and by -11.9 per cent in France. However, Altadis overall dark cigarette sales increased during the period and stood at EUR 145 million (EUR 141 million in 2006), i.e. +3.0 per cent. Price increase and gain of share in Spain and inventories evolution have driven these positive results.

Blond markets

In Spain, Altadis blond sales grew by 20.8 per cent to EUR 155 million (EUR 128 million in 2006). After the increase in the minimum collectible tax of November and the price increase happened at the beginning of the year by EUR 20 cent per pack, the market stabilised and its profitability level improved significantly as a clear indication of focus on profit growth. The blond market increased in volume by 1.3 per cent during the semester. Altadis market share stood at 25.5 per cent (25.4 per cent in 2006), with an improved mix within its brand portfolio of three major brands (Fortuna, Ducados Rubio and Nobel).

In France, since February a new tobacco law is in place reinforcing a ban on smoking in public and work places. Nevertheless, there is a dispensation period until January 2008 for bars, casinos, tobacconists, discos, hotels and restaurants, softening the transition. Despite this tougher regulatory environment, during the first semester of 2007 the total market performed quite well with flat volumes and the blond market was up 1.2 per cent in volume. Altadis blond market share was at 17.6 per cent (18.0 per cent in 2006) and sales were EUR 113 million (EUR 111 million in 2006). Early August 2007, most of the brands have increased prices by EUR 30 cent per pack, first price increase since January 2004.

In Germany, the total cigarette market decreased by -1.1 per cent despite the partial migration into cigarettes from the so-called "sticks" products. As for other key brands, Gauloises Blondes price was raised by EUR 20 cent per pack last October as an anticipation of the VAT increase happened in January. Altadis blond market share for the first half was 5.4 per cent (6.0 per cent in 2006) with sales at EUR 82 million (EUR 88 million in 2006), but in the second quarter Altadis blond market share showed signs of recovery at 5.7%. The decline was mostly due to both the downtrading towards the low price segment and the reduction of the industry sales through the vending machines, a channel where Altadis is particularly strong (new regulations are requiring electronic age verification). However, even within this complex environment Gauloises keeps performing well within the premium segment. In Poland, in a continued very difficult competitive environment, Altadis showed stable volumes and market share stood at 7.3 per cent (7.4 per cent in 2006). In the rest of Europe Altadis blond cigarettes posted market shares, among others, of 18.2 per cent in Finland, 8.0 per cent in Luxemburg, 7.2 per cent in Austria and 6.9 per cent in Belgium.

In Morocco, Altadis remains in a leading position with very positive dynamics. Altadis cigarettes gained share of market and accounted for 86.0 per cent of the blond market (85.3 per cent in 2006), which at the same time increased in volume by 10.6 per cent; Altadis blond sales were up 25.6 per cent to EUR 101 million (EUR 81 million in 2006). The three key brands, Marquise, Fortuna and Gauloises grew faster than the market. Sales evolution also benefited from the regular increase of prices, of which the latest took place in June 2006.

In Middle Eastern countries, after a year of transition when the company reorganised the logistics flows and inventories, Altadis recovered momentum and returned to strong growth with sales reaching EUR 76 million (EUR 61 million in 2006), an increase by 24.1 per cent. Among other markets, Gauloises performed very well particularly in Algeria.

In Russia, the price and tax contexts are becoming tougher, and Altadis keeps reviewing all its options to react to this new environment. During the first semester, however, sales showed some recovery versus last year and Altadis international brands delivered sell-out growth of 65 per cent, led mainly by Gauloises.

Brands

Altadis key international blond brands, Gauloises, Fortuna and Gitanes, which jointly accounted for 56 per cent of the blond sales in value (EUR 375 million) and 47 per cent of the blond volumes (20.6 billion units), showed a strong volume increase of 9.4 per cent during the semester, whereas in value terms they were up by 4.3 per cent. Gauloises Blondes had an excellent double digit volume increase though a flattish evolution in value terms due to the worsening of the mix of sales after the tough market trends occurred in Germany and Austria. Market shares continued to progress in Belgium, Morocco and Russia. Fortuna performance was especially outstanding during this first half showing a total value and volume increase by 11.8 per cent and 6.9 per cent, respectively, a solid blond market share recovery in Spain, 13.4 per cent (12.3 per cent in 2006) and market share gain in Morocco, too. The brand is being introduced in the Middle East.

The most relevant Altadis local brands, Marquise in Morocco, Balkan Star in Russia, Nobel and Ducados Rubio in Spain and News and Royale in France, which jointly accounted for 36 per cent of the blond sales in value (EUR 239 million) and 42 per cent of the blond volumes (18.5 billion units), grew by 22.0 per cent in value and by 15.8 per cent in volume during the semester, driven by strong total market performances and some market share gains and particularly those of Marquise (+18.8 per cent in volume), Nobel (+18.3 per cent in volume) and Royale (+16.8 per cent in volume, also helped by its enlarged geographical scope).

With an Ebitda of EUR 331 million (EUR 249 million in 2006), the Ebitda margin of the Cigarette Division was outstanding at 37.6 per cent (30.5 per cent in the first semester of 2006). The substantial increase is mainly a consequence of the recovery of the margin rate in Spain and of the restructuring savings and cost-cutting. This first half Ebitda margin level is above management's full year expectations due to phasing of advertising and promotion expenses as well as seasonality of sales.

Cigar Division: second quarter rapid and effective reaction in the US

Total economic sales of the Cigar Division, EUR 413 million, broke down principally between the US (approximately 55 per cent), Havana cigars (17 per cent), and Europe (15 per cent).

The Havana cigars and Spanish market performed strongly, but it was not enough to offset the reduction of the US sales in the first quarter and the dollar evolution during the semester.

In the United States, Altadis USA kept its focus on upmarket cigars, i.e. cigars with a natural wrapper, and particularly the brand Dutch Masters on one hand, and premium (hand made) cigars like Montecristo and Romeo y Julieta on the other hand, which proved very successful in previous years and led the recovery in the second quarter of 2007. Sales of Altadis USA in the first half decreased by -4.5 per cent in dollar terms and converted into sales of EUR 226 million (-11.7 per cent on last year's EUR 256 million). Underlying consumption remains solid in volume terms, but the unfavourable exchange rate variation and the very strong comparison base of 2006 added to the challenging market trends, with a much more aggressive competition and consumers moving towards smaller sized products in both natural and sheet wrapper, to drive the performance of the semester. During the second quarter, as market leader, Altadis has taken important measures to address these challenges and this reaction began to show positive results in that quarter in which Altadis USA has changed the trend and returned to growth driven by the Natural & Premium segment. New Altadis products were launched focusing on cigarillo category, new flavours (as for instance, grape and coffee) and product presentation innovation.

Sales of Havana cigars in Altadis accounts (i.e. 50 per cent of all Cuban cigar sales, Altadis consolidating proportionally its 50 per cent holding) increased by 6.8 per cent in dollars (-1.2 per cent in euros) to EUR 69 million (EUR 69 million in 2006). The strategy for Cuban cigars is now well established as a combination of ultimate luxury (exclusive and limited productions, last example being the new line of Cohiba Maduro) and affordable luxury (Mini Cubanos), for a selected number of brands. Sales performed very well in mature markets (for example in Spain, Germany and Italy) and showed very encouraging performance in emerging markets (Russia, Asia-Pacific, Latin America and Morocco).

Altadis posted cigar sales in Europe of EUR 71 million (EUR 72 million in 2006). The Spanish cigar market notably recovered from the drop happened at the beginning of last year following the entry in force of the new regulations restricting retail distribution; therefore, Altadis sales in Spain were above last year's by +6.9 per cent at EUR 39 million (EUR 37 million in 2006). In France sales declined to EUR 24 million (EUR 28 million in 2006).

With an Ebitda of EUR 130 million (EUR 142 million in 2006) the Ebitda margin of the Cigar Division was 31.5 per cent (31.6 per cent in the first semester of 2006).

Logistic Division: good performance

During the first semester of 2007 tobacco distribution represented 47 per cent of total logistic activity. The performance of tobacco logistics reflected the trends of tobacco markets in volume and particularly those of Spain (+0.3 per cent), France (flat), Italy

(-1.0 per cent) and Morocco (+2.8 per cent), and indirectly via inventories, the changes in retail prices. Sales stood at EUR 298 million (EUR 278 million in 2006), up by +7.2 per cent.

General (i.e. non-tobacco) logistic activities, with sales of EUR 340 million (EUR 311 million in 2006) posted a solid increase of 9.6 per cent. Growth was achieved mainly in transport services in Spain and Portugal (+ 15.2 per cent), in publishing, basically in books, (+14.5 per cent) and in pharmaceutical logistics (with sales of EUR 11 million and a +21.6 per cent growth).

In Morocco, general logistics is developing fast and in the first half of 2007 accounted for 12 per cent of total logistics economic sales in that country. Altadis Maroc distributed 23.6 million telephone cards (+51.3 per cent), and is extending its line of products, particularly to electronic collection services (starting with Maroc Telecom).

With its Ebitda of EUR 160 million (EUR 148 million in 2006) the Ebitda margin of the Logistic Division was 25.4 per cent (25.4 per cent in the first semester of 2006).

Other activities

Under the caption Other activities, Aldeasa, which concessions in fourteen Spanish airports were recently renewed until the end of 2009, is now the major consolidated company that is reported (proportionally, i.e. 50 per cent), alongside with corporate costs. Aldeasa provided to Altadis economic sales of EUR 95 million and Ebitda of EUR 16 million (EUR 85 million and EUR 13 million respectively in 2006).

Outlook

Results for the first half of 2007 showed renewed and significant growth trends across most business lines, as a result of the multiple initiatives undertaken in 2006 to strengthen the business and reduce costs. Altadis expects organic performance to remain solid during the second part of the year, although it is adjusting its full year expectations to take into account the effect of the persistent weakness of the US dollar.

_______________________________________________________________

2007 H1 profit and loss account

+-------------------------+---------+---------+------------------+
|(Euro million)           |  H1 2006|  H1 2007|  2006-2007 Change|
+-------------------------+---------+---------+------------------+
|Revenues                 |  6,153.7|  6,127.4|             -0.4%|
+-------------------------+---------+---------+------------------+
|Economic sales           |  1,934.4|  1,937.5|             +0.2%|
+-------------------------+---------+---------+------------------+
|EBITDA                   |    550.4|    590.0|             +7.2%|
+-------------------------+---------+---------+------------------+
|EBITA                    |    482.1|    527.6|             +9.4%|
+-------------------------+---------+---------+------------------+
|Ordinary activities      |    445.6|    502.6|            +12.8%|
|result                   |         |         |                  |
+-------------------------+---------+---------+------------------+
|Other income and expenses|   (57.0)|   (42.7)|            -25.1%|
+-------------------------+---------+---------+------------------+
|Operating result         |    388.6|    459.8|            +18.3%|
+-------------------------+---------+---------+------------------+
|Financial results        |   (59.7)|   (64.1)|             +7.4%|
+-------------------------+---------+---------+------------------+
|Corporate tax            |  (109.2)|  (129.0)|            +18.2%|
+-------------------------+---------+---------+------------------+
|Associates               |      1.4|      4.2|                NS|
+-------------------------+---------+---------+------------------+
|Minority interests       |   (27.0)|   (24.0)|            -11.2%|
+-------------------------+---------+---------+------------------+
|Net income group share   |    194.1|    246.9|            +27.2%|
+-------------------------+---------+---------+------------------+
|Earnings per share       |     73.8|     97.7|            +32.4%|
|(Eurocent) (1)           |         |         |                  |
+-------------------------+---------+---------+------------------+
|Average number of shares |    263.1|    252.8|   3.9 % reduction|
|(m) (2)                  |         |         |                  |
+-------------------------+---------+---------+------------------+

(1) Basic and diluted Earnings per share were equal.

(2) Average number of shares < > = average of (total number of shares - treasury stock).

The number of shares outstanding as of June 30th, 2007 was 256.1 million, of which 3.7 million were held by the Group as treasury stock.

QUARTERLY FIGURES

+---------------+--------+--------+--------+--------+--------+--------+
| Economic sales| Q1 2006| Q2 2006| Q3 2006| Q4 2006| FY 2006| Q1 2007|
+---------------+--------+--------+--------+--------+--------+--------+
| (Euro million)|        |        |        |        |        |        |
+---------------+--------+--------+--------+--------+--------+--------+
| Cigarette     |   393.1|   425.4|   432.1|   442.0| 1,692.6|   413.0|
+---------------+--------+--------+--------+--------+--------+--------+
| Cigar         |   212.4|   237.8|   209.9|   227.7|   887.8|   188.2|
+---------------+--------+--------+--------+--------+--------+--------+
| Logistics     |   279.3|   301.7|   296.1|   313.7| 1,190.8|   319.3|
+---------------+--------+--------+--------+--------+--------+--------+
| Others        |    46.4|    54.0|    59.5|    50.6|   210.5|    43.4|
+---------------+--------+--------+--------+--------+--------+--------+
| Eliminations  |    -1.3|   -14.4|     8.7|    -4.6|   -11.6|   -32.5|
+---------------+--------+--------+--------+--------+--------+--------+
| Total         |   929.9| 1,004.5| 1,006.3| 1,029.4| 3,970.1|   931.4|
+---------------+--------+--------+--------+--------+--------+--------+
+---------------+--------+--------+--------+--------+--------+--------+

+----------------+---------+
|  Economic sales|  Q2 2007|
+----------------+---------+
|  (Euro million)|         |
+----------------+---------+
|  Cigarette     |    468.2|
+----------------+---------+
|  Cigar         |    224.9|
+----------------+---------+
|  Logistics     |    312.6|
+----------------+---------+
|  Others        |     59.4|
+----------------+---------+
|  Eliminations  |    -59.0|
+----------------+---------+
|  Total         |  1,006.1|
+----------------+---------+
+----------------+---------+

+---------------+--------+--------+--------+--------+--------+--------+
|     Ebitda    | Q1 2006| Q2 2006| Q3 2006| Q4 2006| FY 2006| Q1 2007|
+---------------+--------+--------+--------+--------+--------+--------+
| (Euro million)|        |        |        |        |        |        |
+---------------+--------+--------+--------+--------+--------+--------+
| Cigarette     |   115.5|   133.8|   143.3|   131.3|   523.9|   150.2|
+---------------+--------+--------+--------+--------+--------+--------+
| Cigar         |    66.2|    76.2|    69.3|    69.3|   281.0|    55.8|
+---------------+--------+--------+--------+--------+--------+--------+
| Logistics     |    62.0|    85.5|    83.4|    79.3|   310.2|    82.6|
+---------------+--------+--------+--------+--------+--------+--------+
| Others        |    -5.0|     3.7|     9.3|    -0.7|     7.3|    -5.8|
+---------------+--------+--------+--------+--------+--------+--------+
| Eliminations  |    12.5|       -|     9.3|     3.6|    25.4|   -15.0|
+---------------+--------+--------+--------+--------+--------+--------+
| Total         |   251.2|   299.2|   314.6|   282.8| 1,147.8|   267.8|
+---------------+--------+--------+--------+--------+--------+--------+
+---------------+--------+--------+--------+--------+--------+--------+

+----------------+---------+
|      Ebitda    |  Q2 2007|
+----------------+---------+
|  (Euro million)|         |
+----------------+---------+
|  Cigarette     |    181.2|
+----------------+---------+
|  Cigar         |     74.2|
+----------------+---------+
|  Logistics     |     77.8|
+----------------+---------+
|  Others        |      1.8|
+----------------+---------+
|  Eliminations  |    -12.8|
+----------------+---------+
|  Total         |    322.2|
+----------------+---------+
+----------------+---------+

Definitions of non-standard aggregates

Economic sales: For the Cigarette and the Cigar Divisions, Economic sales are equal to revenues + consignment fees + early payment discounts. For the Logistics Division, they are equal to the logistic fee (as opposed to revenue which also includes the value of the goods distributed).

Ebitda: Ordinary activities result before Depreciation and Amortisation.

Ebita: Ordinary activities result before Amortisation.

Ordinary activities result: Operating result before non-recurrent items.

Operating free cash flow: Ebitda + Change in WCR (Working Capital Requirement) - Corporate tax - Maintenance CAPEX.

Organic: Constant scope of consolidation (perimeter) and constant dollar exchange rate.

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