SAVINO DEL BENE S.p.A.

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a) World economy The first six months of the year 2001 were characterised by the slowing down of the world economy greater than expected, due principally to the sharp slowing down of economic activity in the USA, as a result of the reduction in investment, especially in the new information technology sector. During the second quarter of the year 2001 orders for capital equipment also fell. This reduction in activity regards the manufacturing sector, not that of services, as may be seen from the employment statistics and the expectations of purchase managers in both sectors. The increase in the consumer confidence index in May and June leads us to expect that consumption shall continue to sustain production activity and that it could benefit in the future from the drop in oil prices. In addition, the expansion strategy implemented both by the Federal Reserve and by the American government should produce significant effects as from the final quarter of the year. The negative performance of the Japanese economy, which registered a drop in GNP during the first quarter of the year 2001, has not contributed to the growth in international trade. The most recent forecasts show no change in GNP for the current year and a slight growth during the year 2002. The slowing down in the world economy has also had negative effects on the emerging economies. The European economy is also slowing down. During the first quarter of the year the GNP has risen by 2.4% on an annual basis with respect to the last quarter of the year 2000. The balance of trade remains positive, due in part to the drop in imports. The maintenance of the level of household consumption has compensated for the drop in investments, although industrial production has decreased since the beginning of the year. A growth in GNP of around 2% is expected for the year 2001. In Italy consumption is stagnant, due to the effects of inflation. The growth in investment has been very slight, while net foreign demand has not contributed in any way towards the growth in GNP. Following a positive trend during the first three months of the year, exports have almost come to a halt during the second quarter. Following the unsatisfactory results registered in April and May, the estimated figures for June and July show a partial recovery in industrial production. The economic indicators show better prospects for growth than those of the Euro area as a whole. In terms of our Group, we would point out that the drastic slowing down in growth registered during the first half of the year 2001 resulted in a sharp braking in trade throughout the entire world and that international imports and exports remained stagnant in terms of volume during the first three months of the year, to drop even further during the second quarter. Nevertheless, the consolidation of the recovery in the international economic situation during the year 2002, should result in an increase in imports and exports, the growth in which could well exceed 7.5 %. As regards currency exchange rates, a gradual recovery is expected in the value of the euro against the US dollar during the second half of the year. The gradual strengthening of the euro should be confirmed during the year 2002, without however reaching parity with the US dollar: the average quotation during the coming year should be 0.93 dollars. These figures lead us to expect a lower growth in European exports towards the USA and a greater growth in trade on other routes. b) Company performance The Company and therefore the Savino Del Bene Group, plays a leading role in the international shipping and transport market in Italy, due both to the size of its international and national network, and to the quality of the service offered in addition to the economic results achieved. The quality of the service and the vast range of destinations reached have made us market leader in our sector and have enabled us to realise positive results in excess of those of our competitors, even in difficult market situations. The performance of the first six months of the year 2001 was characterised by a reduction in income before taxes of approx. 30%, dropping from Lire 14,598 million at 30th June 2000 to Lire 10,183 million at 30th June 2001. Corresponding figures for the first six months of the year 2000 and for the entire year 2000 are provided for comparative purposes: (+)Sales revenue (+) Other income and revenues Value of production (-) Goods and services consumed Added value Diff. %Diff. 30.06.00 % 31.12.00 % 30.06.01 % 6.01-6.00 6.01-6.00 181,966 99.3% 384,759 99.3% 177,826 99.1% -4,140 -2.28% 1,215 0.7% 2,883 0.7% 1,640 0.9% 425 34.98% 183,181 100% 387,642 100% 179,466 100% -3,715 -2.03% -154,821 -84.5% -328,536 -84.8% -153,729 -85.7% 1,092 -0.71% 28,360 15.5% 59,106 15.2% 25,737 14.3% -2,623 -9.25% 2
(-) Labour costs (-) Sundry costs Gross operating margin (-) Amortisation, depreciation and write-down of fixed assets (-) Write-down of current assets (-) Provisions for risks Net operating income -14,174 -7.7% -28,319 -7.3% -16,057 -8.9% -1,883 13.28% -427 -0.2% -1,098 -0.3% -618 -0.3% -191 44.73% 13,759 7.5% 29,689 7.7% 9,062 5.0% -4,697 -34.14% -1,147 -0.6% -3,410 -0.9% -1,762 -1.0% -615 53.62% -452 -0.2% -1,193 -0.3% -310 -0.2% 142 -31.42% -327 -0.2% -459 -0.12% -377 -0.2% -50 15.29% 11,833 6.5% 24,627 6.4% 6,613 3.7% -5,220 -44.11% + (-) Financial income (expenses) 1,212 0.7% 811 0.2% 2,021 1.1% 809 66.75% + Dividends and tax credits 1,639 0.9% 3,608 0.9% 1,539 0.9% -100 -6.10% (+/-) Adjustments to value of financial assets -7 0.0% -358 -0.09% 0 0.0% 7 -100% Income before taxes and extraordinary items 14,677 8.0% 28,688 7.4% 10,173 5.7% -4,504 -30.69% + (-) Extraordinary income (expenses) -79 0.0% 1,824 0.5% 10 0.0% 89 -112.% Income before taxes 14,598 8.0% 30,512 7.9% 10,183 5.7% -4,415 -30.24% Income tax for the period 0 0.0% -13,468 -3.5% 0 0.0% 0 = Net income for the period 14,598 8.0% 17,044 4.4% 10,183 5.7% -4,415 -30.24% During the period the Company recorded sales revenues of Lire 177,826 million, with a decrease of only 2.28% with respect to the figure for six months ended 30th June 2000, despite the fact that the company's business, and particularly that regarding the American market, has undergone a significant reduction in volume. The Company has continued its policy of expanding its direct presence on new markets and during the first six months of the year 2001 it opened a new office in Padova and another three offices at Buenos Aires, at Campinas (Brazil) and at Philadelphia (USA). With respect to the first half of the previous year, the volumes of goods shipped have decreased in the sea shipment sector (- 14.86%) and increased in the air sector (+3.81%), the same applies to revenues, which show a decrease in the sea shipment sector (-7.78%) and an increase in the air sector (+11.92%). The gross operating margin has fallen from Lire 13,759 million during the first six months of the year 2000 to Lire 9,062 million during the first six months of the year 2001, representing a decrease of approx. 34% and the gross operating margin /total sales revenue ratio has fallen from 7.5% to 5%. The decrease in profitability is due both to the higher incidence of labour costs on revenues, which rose from 7.79% at 30.6.00 to 9.03% at 30.6.01, and to the decrease in turnover per employee, which amounted to Lire 490 million against Lire 551 million as at 30.6.00. Once again the contribution made to the result for the period from the company's financial management (Lire 3,560 million) was considerable, due to significant exchange gains and income from equity investments. As regards the company's performance, the table below shows the following a decrease: 30.06.00 31.12.00 30.06.01 Difference 30.6.2001 -30.6.2000 % Difference 30.6.2001- 30.6.2000 Sales revenue 181,966 384,759 177,826 -4,140 -2.28% Gross operating margin 13,759 29,689 9,062 -4,697 -34.14% Net operating income 11,833 24,627 6,613 -5,220 -44.11% Net income before taxation 14,598 30,512 10,183 -4,415 -30.24% In particular, the decrease in income has led to a reduction in the principal financial and economic ratios: 30.06.00 30.06.01 Gross operating margin /Total sales revenue 7.6 5.1 Net operating income / Total sales revenue (ROS) 6.5 3.7 Return on equity (ROE) 21.0 11.8 Return on investments (ROI) 18.2 10.2 Debt ratio (net liquidity/capital invested) 20.1 3.4 The following table shows an analysis of sales revenue by sector, showing the variations that have taken place with respect to the figures for the year ended 31st December 2000 and the six months ended 30th June 2000: 3
Page 1: SAVINO DEL BENE S.p.A. DIRECTORS' R
Page 5 and 6: geographic area of the customer inv
Page 7 and 8: 30.06.01 % North America 20,220 35.
Page 9 and 10: quality of service to its customers
Page 11 and 12: • Savino Del Bene USA Inc. (New Y
Page 13 and 14: most significant reduction regarded
Page 15 and 16: against Lire 33 million for the per
Page 17 and 18: The parent company's income stateme
Page 19 and 20: educed where necessary to take acco
Page 21 and 22: - fidejussions granted to third par
Page 23 and 24: • Additions 145 214 1,349 227 1,9
Page 25 and 26: Receivables due from associated com
Page 27 and 28: Other receivables amount to Lire 9,
Page 29 and 30: The provision for leaving indemniti
Page 31 and 32: Subsidiary companies 31.12.00 30.06
Page 33 and 34: NOTES TO THE INCOME STATEMENT Value
Page 35: The new versions of the accounting

SAVINO DEL BENE S.p.A.

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