Chairman’s Message

Dear shareholders,

Il Presidente di AutogrillThe period just ended was characterized by ups and downs in the various geographical regions and in different stages of the year. Growth in international trade improved the economic situation, which is still proving weak, however, in terms of consumer spending and employment in the markets where we operate. Mobility figures, on the other hand, while generally positive, were penalized by bad weather and natural disasters, making it necessary apply containment and contingency strategies.

Thanks to its geographical reach and business diversification, Autogrill managed to produce positive results in this scenario, recording growth in sales in excess of the trend in air and motorway traffic. A particularly significant contribution came from Travel Retail & Duty-Free, which exploited the rapid recovery in flights and increasing numbers of passengers to achieve impressive growth in revenues and, even more so, in profitability. Growth in the Food & B everage business was more gradual.

2010 was a good year from a financial viewpoint as well. Cash flow generation strengthened our financial position, reduced debt and favoured investments. The good results are also reflected in the return to a dividend for shareholders.

With the disposal of the Flight business we are convinced we were right to focus our business portfolio on the two sectors in which the Group enjoys leadership, Food & Beverage and Travel Retail, which are linked by natural synergies and are tending increasingly to be perceived as part of a single purchasing experience.

In 2011, we are aiming to build on our results but without relaxing our sense of realism and prudence regarding the global situation, with rising raw materials prices and the spectre of inflation, and the consequences of unpredictable meteorological events and political instability. We trust though in the Group’s capacity to deal with external pressures, given the proven flexibility of its business model, the commitment of its management and its international make up.

We have recently consolidated important relations with our commercial partners and extended many contracts, including a ten-year renewal of collaboration with Starbucks.

Our management’s remuneration systems have been modified to allow them greater sharing in the creation of value by introducing stock option and stock grant schemes in line with European Union, Consob and Borsa Italiana recommendations.

It is necessary for management too, in fact, to be involved in the process of growing the company in terms of size, value and geographical reach, for there is significant potential we have yet to tap into, subject of course to the restraints of financial sustainability.

Gilberto Benetton