Servizi Italia

Earnings Release • Mar 15, 2016

Group

In the Italian market, SERVIZI ITALIA is the undisputed leader in providing industrial laundry and sterilization services to the public healthcare system, thanks to a consolidation strategy made of internal growth and acquisitions.

From 2012, Servizi Italia has been exporting a winning business model:

SERVIZI ITALIA satisfies expectations and needs of customers thanks to a high quality of mix of product and services.

A business model which contributes to the rationalization of healthcare costs and social sustainability in Italian regions and in all the countries where it is active.

Business

Servizi Italia has constantly demonstrated to be the partner of choice of the Italian healthcare service and hospitals, thanks to its proven and recognized quality service.

1. LONG-TERM CONTRACTS AND ACTIVITY PLANNING FOR FUTURE YEARS

• Revision of contracted prices according to regulations in force;
• High quality of credits (mainly government bodies);
• Cross-selling opportunities on wash-hire contracts for higher value added services.

2. INVESTMENTS MADE ONLY AFTER CONTRACT ACQUISITION and refund according to contract

3. MIX PRODUCT/SERVICE which creates strong barriers on entry

4. Technologically advanced PRODUCTION PLATFORM which counts:

• 18 INDUSTRIAL LAUNDRY plants (including 4 in Brazil and 1 in India)
• 06 LINEN STERILIZATION plants
• 22 SURGICAL INSTRUMENTS STERILIZATION plants

Internationalization

The best answer to the recession of the Italian market (healthcare spending review) is to follow a

STRATEGY OF INTERNATIONAL DEVELOPMENT OF THE GROUP

New markets

In the countries where it is active, Servizi Italia has found some interesting fetures in order to export its business model:

• Presence of recent markets currently under heavy development and looking for qualified operators in order to meet the high demand connected to wash-hire/sterilization activities, partly due to an increase of the so-called medical tourism;
• High penetration rate in the market: only a few of wash-hire services are currently outsourced to private operators, both in public and private healthcare;
• Low competitiveness: average operators are small, with low self-financing capacity and inefficient management models.
• Old fashioned laundry plants, lacking of an industrial management model with real opportunity to make efficiency by exporting technical management of the business models adopted by the Group.

During the last three years, the Italian industrial laundry market registered a contraction in the healthcare wash-hire segment due to the spending review measures promoted by the Italian Government, which will influence 2016 as well.

27%

19%

The SERVIZI ITALIA GROUP is the absolute leader in the healthcare segment.

Brazil

The Servizi Italia Group is present in Brazil, in the State of Sao Paolo, and it considered as a landmark for both private and public healthcare:

The Brazilian market is characterized by a high penetration rate: just a 45% of wash-hire services is outsourced to private operators, while in Italy the 95% is currently outsourced.

COMPETITIVE FRAMEWORK

The market has recently undergone some changes, thanks to a specialization phase of the sector. The main players are: ATMOSPHERE (Elis Group), the largest laundry in South America, which has eight operating units in Brazil; LAVE BRAS, Brazilian group that is conducting an aggressive policy of expansion through acquisitions; MARTINS & LOCOCO, a family owned hospital laundry.

Turkey The Servizi Italia Group is present in Turkey with two different companies dealing with laundry (ANKATEKS) and sterilization (SAS STERILIZASYON SERVISLERI).

≈ 1.400*	195,000* AVAILABLE OVER	6 MILLION* ABOUT
HEALTHCARE FACILITIES	BEDS	OPERATIONS/YEAR

PPP PROJECTS: local reforms will lead to the construction of new hospitals with public-private participation, which is estimated to increase the number of beds in the market up to about 250,000 over the next few years.

ANKATEKS, main turkish operator in hospital laundry sector, known under the brand "Ankara Laundry" and active in the area of Ankara and – through the controlled company ERGULTEKS – of Izmir.

PRODUCTION VALUE

2015 ANKATEKS € 4.2 Mln ERGULTEKS € 2.6 Mln

2 INDUSTRIAL LAUNDRY PLANTS which are technologically advanced and strategically positioned in the country (Ankara and Izmir).

COMPETITIVE FRAMEWORK

At the moment there is no predominant group in wash-hire and sterilization markets: some hospitals perform these services internally, while others rely on companies which offer cleanign and laudry services for other sectors.

* Source:http://www.healthinturkey.org/

COMPETITIVE FRAMEWORK

At the moment there is no competitor in wash-hire and sterilization markets. The medical and hospital overview is characterized by high quality of performance and facilities against a low level of services.

Albania

Following the subscription of a 10-year contract for:

• sterilization, maintenance and renting of surgical instruments
• sterilization management of re-usable medical devices
• supply of disposable medical devices

to all public and private hospitals of the Republic of Albania, SERVIZI ITALIA has established a new company, SANISERVICE, based in Tirana, of which it owns the 30%.

TOTAL VALUE AWARDED: EURO 70 MILLION

CONTRACT TOTAL DURATION: 10 YEARS

NR. OPERATIONS/YEAR: OVER 50,000

Starting date of the concession is expected in the first quarter of 2016 at the University Hospital Center "Mother Theresa" in Tirana with a two-year roll-out plan, which envisages the extension of the service initially to other university hospitals in Tirana and, at a later stage (within about two years from the start of the concession), to all the public hospitals in the Country.

COMPETITIVE FRAMEWORK

At the moment there is no competitor in wash-hire and surgical instruments sterilization markets.

Strategy

The investments made over the years have ensured a process of continuity and growth, adding value to the company, creating new jobs and providing a better quality of service.

The value of sustainability is at the base of the Group and leads its strategic action.

1. STRENGHTENING OF THE LEADERSHIP IN ITALY Contracts awarding and cross-selling opportunities Customer retention activities Acquisition of new target companies 2. STRENGHTENING IN ESTABLISHED MARKET AND FURTHER GEOGRAPHICAL EXPANSION 3. MANAGEMENT OPTIMIZATION Operational and organisational efficiency in order to maintain margind and profitability 4. DEVELOPMENT AND FOCUS ON OTHER VALUE-ADDED SERVICES Surgical instruments sterilization, procedure sets for operating theatre and supply of non- Development and consolidation of the business model in the State of Sao Paolo (Brazil) Development and growth in other areas (Turkey, India, Albania) SUSTAINABILITY VALUE trasparency and completeness of information

woven or reusable fabrics

Economics & Financial ¹³

Economics

M REVENUES – REVENUES FROM ABROAD AIN ECONOMIC CONSOLIDATED DATA FY2015

(Euro thousand)	31/12/2015	31 /12/2014	Variation	Var. %
Ricavi	229,983	234,347	(4,364)	-1.9%
EBITDA	63,649	66,826	(3,177)	-4.8%
EBITDA %	27.7%	28.5%
EBIT	16,565	23,179	(6,614)	-28.5%
EBIT %	7.2%	9.9%
Net Profit	12,483	13,414	(931)	-6.9%
Net profit %	5.4%	5.7%

0,0 10,0 20,0 30,0 40,0 FY2015 FY2014 12.5 13.4 16.6 23.1 EBIT NET PROFIT

EBIT – NET PROFIT REVENUES - EBITDA

Economics

REVENUES AND PROFITABILITY PER BUSINESS LINE, RE-BALANCE OF PRODUCTION MIX

Financial

GOOD FINANCIAL MANAGEMENT FY2015 NET FINANCIAL POSITION

(Euro thousand)	FY2015	FY2014
Net working capital	13,726	15,789
Other short-term assets/liabilities	(7,565)	(25,208)
Net Working Capital	6,161	(9,419)
Fixed assets – medium/long term provisions	183,086	179,086
Invested capital	189,247	169,667
Shareholder's Equity (B)	122,094	111,588
Net financial debt (A)	67,153	58,079
Invested Capital (C)	189,247	169,667
Gearing (A/A+B)	35.5%	34.2%
Debt/Equity (A/B)	55.0%	52.0%

CREDIT LINES FY2015 NET DEBT/EQUITY

Cashflow

Servizi Italia's activity, excluding "operating" investments, generates positive cashflow.

During the last few years the Group Management decided to spend its resources in "structural" investments in order to consolidate its leadership position and to constantly improve group performances.

Net of "operating" investments, Servizi Italia generated cash over Euro ¹⁶¹ million from ²⁰⁰⁶ to ²⁰¹⁵ Mln Euro 17,5 18,8 17,1 18,7 24,5 11,0 11,4 13,0 20,4 8,3 9,2 11,0 -8,2 -1,8 -15,5 -4,6 -8,5 -4,4 11,1 -10,5 -20,0 -15,0 -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25,0 30,0 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A GESTIONE OPERATIVA + ATTIVITÀ DI INVESTIMENTO "DI FUNZIONAMENTO" 17,5 18,8 17,1 18,7 24,5 10,5 24,2 9,2 11,0 -1,8 -15,5 -4,6 12,5 -20,0 -15,0 -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 25,0 2006 2007 2008 2009 2010 2011 9M 2012 GESTIONE OPERATIVA + ATTIVITÀ DI INVESTIMENTO "DI FUNZIONAMENTO" GESTIONE OPERATIVA + ATTIVITÀ DI INVESTIMENTO OPERATING MANAGEMENT + "OPERATING" INVESTMENT ACTIVITY OPERATING MANAGEMENT + INVESTMENT ACTIVITY

GENERATED CASHFLOW (EMPLOYED) 2006 –2014

ATTIVITÀ DI INVESTIMENTO

OPERATING INVESTMENTS include:

• Purchase of linen, textile and mattresses for wash-hire services
• Purchase of surgical instruments for sterilizing plants

"STRUCTURAL" INVESTMENTS include:

• Investments in wash-hire plants which in the past allowed Servizi Italia to become leader, but that are now becoming less and less relevant in Italy;
• Investments in sterilizing plants which allow Servizi Italia to expand to a business with higher margins. While investing in sterilizing plants, Servizi Italia is simultaneously signing a commercial agreement for the return of some of the investment within a medium term;

Acquisition of new companies

Details on shares (as at 11/03/2016)
Number of shares	30,699,266
Price per share	€ 3.47
Capitalization	€ 106,526,453

Main shareholders as at 11/03/2016	%Capital
Aurum SpA	58.1%
Kabouter Management LLC	8.8%
Padana Emmedue SpA	5.3%
Steris UK Holding Ltd	2.5%
Others < 2%	24.3%

DIVIDENDS DISTRIBUTED PER YEAR

* Dividend to be approved by the Shareholders' meeting on 20th April 2016

As of 11th March 2016, Servizi Italia holds a total of 279,891 treasury shares, equal to 0.9117% of the share capital.

Please note that following the share capital increase, on 2 nd August 2012, the share capital passed from Euro 16,200,000 to Euro 27,188,805, and that following the closure of the third Exercise Period of "Warrant Services Italy 2012- 2015", dated 4 th November 2013, 5 th November 2014 and 3 rd November 2015, the share capital has fluctuated from Euro 27,188,805 to Euro 30,699,266.

Disclaimer

This presentation has been prepared by Servizi Italia S.p.A. ("Servizi Italia" or the "Company") and must be read in conjunction with its oral presentation.

The information contained in this presentation does not purport to be comprehensive. Neither Servizi Italia S.p.A. nor any of its officers, employees, advisers or agents accepts any responsibility for/or makes any representation or warranty, express or implied, as to the truthfulness, accuracy or completeness of the information contained in this presentation or any other information relating to Servizi Italia S.p.A., its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, transmitted or otherwise made available.

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This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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The information in this document and any other material discussed at the presentation are provided as at the date of this presentation and is subject to completion and change without notice.

By attending the presentation you agree to be bound by the foregoing terms.

Dati Societari Servizi Italia S.p.A.	Mercato: MTA - Segmento STAR
Via S. Pietro, 59/b	Settore: Industriale
43019 Castellina di Soragna (PR) Italia	Codice ISIN per azioni ordinarie: IT 0003814537
Tel.+39 0524598511 - Fax+39 0524598232	Reuters: SRI.MI --- Bloomberg:SRI IM
Capitale Sociale: Euro 30,699,266 fully paid up	Investor Relations: Giovanni Manti, Chiara Peterlini
Anno costituzione: 1986	e.mail: investor@si-servizitalia.com
Codice fiscale e Numero Registro Imprese di Parma: 08531760158	web site: www.si-servizitalia.com