1. The Global Pasta Market : What are the strategic directions the global pasta industry must pursue? Nicola Ghelfi General Manager Business Unit Pasta Meal – Barilla

2. The Problem of the Pasta Industry Industry Profit Pool decline expected to accelerate even further due to: Flat consumptions in key markets Trade pressure on retail shelf price and unit net sales Durum wheat price and other costs increase

3. Nicola Ghelfi - The Global Pasta Market Durum Wheat Export price Durum Wheat price: key Italian market Long Term Durum Wheat Cost Deflation (USD x ton)

4. The Challenge of the Demand and Strategic Direction #1 Atkins and anti-carbs diet viruses Pathological Obesity Communication on behalf of pasta not enough to support demand Strategic Direction #1 Strive for consumption increase via innovative communication of scientific evidences

5. Nicola Ghelfi - The Global Pasta Market ATKINS BEVERLY HILLS SOUTH BEACH 40 Years of criticized diets 1963 One of the first diets, based on calories quantity, privileging proteins Kate Winslet 1975 Created by Dr Atkins, Eliminates all carbs including fruits and vegetables. 1992 Created by George Malkmus, it eliminates all animal- originated food (except honey) 2004 Created by A. Agatson, is based on cutting carbs BIBLE Brad Pitt John Travolta Bill Clinton Jodie Foster 1981 Created by Judy Mazel, it lasts 35 days – the first 10 days are based on fruits and begetables only. WEIGHT WATCHERS

6. Nicola Ghelfi - The Global Pasta Market

7. The Challenge of Innovation and Strategic Direction #2 Avoid product introductions destroying Pasta category quality perception Health & Wellness needs and aspirations not fulfilled yet Strategic Direction #2 Preserve/increase quality and respond to Health&Wellness needs at quality parity

8. The Challenge of Branding and Strategic Direction #3 Pasta commoditization Brands are less and less differentiated Intanglibles are less and less effective Strategic Direction #3 Progressively increase investment behind Brands and focus on tangibles

9. The Challenge of New Markets and Strategic Direction #4 Pasta consumptions in current markets expected to grow by +0,5% 05-25 CAGR China and India, despite of cultural barriers, could enable Asia to get +1,200,000 tons by 2025 Strategic Direction #4 Develop pasta demand in China and India via new entry strategies

10. The Strategic Agenda for Pasta Industry Future 1.Strive for consumption increase via innovative communication of scientific evidences 2.Preserve/increase quality and respond to Health&Wellness needs at quality parity 3.Progressively increase investment behind Brands and focus on tangibles 4.Develop pasta demand in China and India via new entry strategies Invest on the future AND do well in the short term Increase Value AND Achieve Efficiencies

11. Magna pars est profectus velle proficere Gran parte del progresso sta nella volontà di progredire