Quarterly Report • Jun 6, 2017
Quarterly Report
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| SIGNIFICANT GROUP FIGURES AND RESULT INDICATORS 3 | |
|---|---|
| SUMMARY OF THE OPERATIONS IN THE FIRST QUARTER OF 2017 5 | |
| CORPORATE BODIES 6 | |
| EXPRIVIA: FUTURE. PERFECT. SIMPLE. 8 | |
| THE EXPRIVIA BUSINESS MODEL11 | |
| SKILLS 18 | |
| PERFORMANCE OF EXPRIVIA GROUP RESULTS 19 | |
| SIGNIFICANT EVENTS IN THE FIRST QUARTER OF 2017 24 | |
| EVENTS AFTER 31 MARCH 2017 25 | |
| STAFF AND TURNOVER26 | |
| INTER-COMPANY RELATIONS 28 | |
| RELATED-PARTY TRANSACTIONS 29 | |
| GROUP RELATIONS WITH THE PARENT COMPANY 30 | |
| BUSINESS OUTLOOK 31 | |
| CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 MARCH 2017 33 | |
| EXPLANATORY NOTES TO THE EXPRIVIA GROUP FINANCIAL STATEMENTS43 | |
The table below gives a summary of the main consolidated economic, capital and financial data of the Group as at 31 March 2017, at 31 March 2016 and 31 December 2016.
| 31.03.2017 | 31.03.2016 | 31.12.2016 | |
|---|---|---|---|
| Total production revenues | 36,781,043 | 32,542,859 | 141,782,617 |
| net proceeds and variation to work in progress to order | 35,889,596 | 31,609,390 | 137,250,144 |
| increase to assets for internal work | 620,627 | 316,844 | 1,927,238 |
| other proceeds and contributions | 270,820 | 616,625 | 2,605,235 |
| Difference between costs and production proceeds (EBITDA) | 3,032,834 | 1,725,158 | 12,797,488 |
| % on production proceeds | 8.2% | 5.3% | 9.0% |
| Net operating result (EBIT) | 1,872,452 | 663,666 | 7,793,050 |
| % on production proceeds | 5.1% | 2.0% | 5.5% |
| Net result | 931,732 | (273, 518) | 2,838,069 |
| Group net equity | 75,605,520 | 72,968,976 | 74,744,188 |
| Total assets | 207,069,482 | 181,277,318 | 206,228,144 |
| Capital stock | 25,154,899 | 25,553,221 | 25,154,899 |
| Net working capital (1) | 35,546,839 | 34,053,470 | 29,442,973 |
| Cash flow (2) | 2,093,390 | 580,327 | 9,284,104 |
| Fixed capital (3) | 102,430,402 | 90,599,650 | 102,810,040 |
| Investment | 607,259 | (850, 531) | 11,396,593 |
| Cash resources/bonds (a) | 9,847,031 | 9,255,319 | 20,399,886 |
| Short-term financial debts (b) | (27, 256, 046) | (38,791,499) | (29,003,855) |
| Medium-/long-term financial debts (c) | (24,587,826) | (7,538,127) | (27, 184, 505) |
| Net financial position (4) | (41,996,841) | (37,074,307) | (35,788,474) |
(1) "Net working capital" is calculated as the sum of total current assets less cash at bank and on hand and total current liabilities plus current bank debt
(2) Cash flow is calculated as the sum of net profit (loss) adjusted by amortisation, changes in employee severance indemnities, write-downs and provisions
(3) "Fixed capital" is equal to total non-current assets
(4) Net financial position = a + (b + c)
The table below shows the main economic indicators of the Group as at 31 March 2017, compared with the same period of the previous year.
For the calculation of ROE and ROI, it was decided to adopt an annual "rolling" approach using as a reference for net profit and operating income the periods from 1 April 2016 - 31 March 2017 for figures as at 31 March 2017 and 1 April 2015 - 31 March 2016 for figures as at 31 March 2016.
| Exprivia Group | 31/03/2017 | 31/03/2016 |
|---|---|---|
| Index ROE (Net income / Equity Group) | 5.35% | 6.30% |
| Index ROI (EBIT / Net Capital Invested) (5) | 7.39% | 8.63% |
| Index ROS (EBIT / Revenues from sales and services, net of changes in inventories of raw materials and finished products)) |
5.22% | 2.10% |
| Financial charges (6) / Net profit | 0.551 | $-2.309$ |
(5) Net capital employed = is equal to net working capital plus non-current assets net of total non-current liabilities (excluding bank debt and bond issues)
(6) Financial Charges: calculated net of interest cost IAS 19
The table below shows the main capital and financial indicators of the Group as at 31 March 2017, at 31 March 2016 and at 31 December 2016.
| Exprivia Group | 31/03/2017 | 31/03/2016 | 31/12/2016 |
|---|---|---|---|
| Net Financial Debt / Equity Capital | 0.56 | 0.51 | 0.48 |
| Debt ratio (Total Liabilities / Equity Capital) | 2.74 | 2.48 | 2.76 |
A summary of the main consolidated economic, capital and financial data of the Group is reported below, prepared in accordance with International Accounting Standards (IAS/IFRS), and, in particular, with standard IAS 34, as emerging from the situation as at 31 March 2017, compared with the same period of the previous year.
| Exprivia Group (value in $K \in \Sigma$ ) | 31.03.2017 | 31.03.2016 | Variazioni % |
|---|---|---|---|
| Revenues | 36,781 | 32,543 | 13.02% |
| Net revenues | 35,890 | 31,609 | 13.54% |
| EBITDA | 3,033 | 1,725 | 75.83% |
| EBIT | 1,872 | 664 | 181.93% |
| Pre-tax result | 1,551 | 38 | 3981.58% |
| Result | 932 | $-274$ | 440.15% |
In the first quarter of 2017, consolidated revenues amounted to Euro 36.8 million with a 13.02% increase compared to the revenues in the same period of the previous financial year (Euro 32.5 million). The growth was mainly seen in the Utilities market, as a result of previously awarded tender contracts having become fully operational and the acquisition of ACS which was concluded in the second half of 2016. Foreign markets, however, were down slightly in terms of volumes—a drop anticipated by the budget and resulting from a reorganisation of the offering—, as were the Healthcare sector and Telco & Media.
Consolidated net revenues amounted to Euro 35.9 million in the first quarter of 2017, with a 13.54% increase compared to the same period in the previous financial year (Euro 31.6 million). As regards net revenues, the same applies as for total revenues; the greater growth with respect to total revenues derives from the lower fees recorded in the first quarter of this year on funded innovative projects.
Consolidated EBITDA amounted to Euro 3 million in the first quarter of 2017, with a 75.83% increase compared to the same period in the previous financial year (Euro 1.7 million in 2016). A particularly significant increase in profitability was seen in this quarter, not only in Italy but also abroad.
Consolidated EBIT amounted to Euro 1.9 million in the first quarter of 2017, with a 181.93% increase compared to the same period in the previous financial year (Euro 0.7 million in 2016). Pre-tax result in the first quarter of 2017 amounted to Euro 1.6 million, compared to Euro 38 million in the first quarter of 2016.
The Net Financial Position as at 31 March 2017 was Euro -42 million compared to Euro -35.8 million as at 31 December 2016. Group Shareholders' Equity as at 31 March 2017 was Euro 75.6 million, compared to Euro 74.7 million as at 31 December 2016.
| Exprivia Group (value in K $\epsilon$ ) | 31.03.2017 | 31.03.2016 | 31.12.2016 |
|---|---|---|---|
| Group Net Worth | 75.606 | 72.969 | 74.744 |
| Net Financial Position | (41.997) | (37.074) | (35.788) |
As at 31 March 2017, the Board of Directors of Exprivia SpA, whose term of office will expire when the yearend 2016 financial statements are approved, was composed as follows:
| Board Member | Office | Executive/ Non Executive |
Place and Date of Birth | Gender | First Appointment |
|---|---|---|---|---|---|
| Domenico Favuzzi | Chairman and Chief Executive Officer |
Executive | Molfetta (BA) 18.04.62 | M | 29 June 2005 |
| Dante Altomare | Vice Chairman | Executive | Molfetta (BA) 18.09.54 | M | 29 June 2005 |
| Vito Albino | Independent Director (*) |
Non Executive |
Bari 10.09.57 | M | 12 March 2013 |
| Angela Stefania Bergantino |
Independent Director (*) |
Non Executive |
Messina 24.09.70 | F | 23 April 2014 |
| Rosa Daloiso | Director | Non Executive |
Margherita di Savoia (FG) 05.04.66 |
F | 31 March 2008 |
| Mario Ferrario | Director | Non Executive |
Padua 05.02.46 | M | 23 April 2014 |
| Marco Forneris | Director | Non Executive |
Caluso (TO) 19.02.51 | M | 28 April 2011 |
| Alessandro Laterza | Independent Director (*) |
Non Executive |
Bari 09.02.58 | M | 31 March 2008 |
| Valeria Savelli | Director | Non Executive |
Matera 15.10.62 | F | 28 April 2011 |
| Gianfranco Viesti | Independent Director (*) |
Non Executive |
Bari 09.08.58 | M | 23 April 2014 |
(*) Independent Directors under art. 3 of the Corporate Governance Code adopted by Borsa Italiana
For the purpose of their offices, all directors are domiciled at the registered offices of the Company in Molfetta (BA), Via Adriano Olivetti 11.
The Board of Directors is vested with all the broadest powers necessary for ordinary and extraordinary management of the company without any exception and all options are available to pursue the company purpose. Thus, it can undertake any type of obligation and perform any act without limitation as all operations fall within the scope of their competence with the exception of any matters expressly delegated by law to the shareholders' meeting.
As at 31 March 2017 the Board of Statutory Auditors, whose term of office will end when the year-end 2016 financial statements are approved, was composed as follows:
| Board Member | Office | Place and Date of Birth | Gender |
|---|---|---|---|
| Ignazio Pellecchia | Chairman | Bari 28.06.68 | M |
| Anna Lucia Muserra | Regular Auditor | Genoa 21.09.62 | F |
| Gaetano Samarelli | Regular Auditor | Molfetta (BA) 07.12.45 | M |
| Valeria Cervellera | Substitute Auditor | Bari 07.08.69 | F |
| Mauro Ferrante | Substitute Auditor | Bisceglie (BA) 01.11.64 | M |
On 23 April 2014, the shareholders' meeting appointed PricewaterhouseCoopers SpA as independent auditors for the years 2014 – 2022.
Exprivia is an international group, now composed of around 2,000 professionals, able to activate the processes of digital transformation through solutions that involve the entire chain of value. An entity that sets itself apart for its ability to manage complex projects through the connection and integration of vertical and horizontal skills, and for the capacity to create simple solutions to be utilised and updated, given based on constant research and innovation activities. Equipped with extensive know-how and experience gained in more than 30 years of constant presence in the market, Exprivia has a team of experts specialised in the various technological areas and domains, from Capital Market and Credit & Risk Management, to IT Governance, from BPO to IT Security, from Big Data to Cloud, IoT to Mobile, from the world of SAP, distributed amongst its various locations in Italy and abroad (Europe, America and Asia).
Listed on the stock exchange's MTA STAR segment since 2000, Exprivia works alongside its customers in the Banking&Finance, Telco&Media, Energy&Utilities, Aerospace&Defense, Manufacturing&Distribution, Healthcare sand Public Administration sectors.
Exprivia Digital Financial Solution Srl, wholly-owned by Exprivia, based in Milan and with fully paid-up share capital of Euro 1,586,919.00, is a leader in Italy in the outsourcing of IT, legal and administrative services targeted at factoring companies, and supports the various phases of the credit life cycle with proprietary solutions.
Exprivia Telco & Media Srl, formerly Devoteam Ausytem, 100%-owned by Exprivia, based in Milan and share capital of Euro 1,200,000.00, has operated in the Italian market for more than 15 years as a reference company in the Telecommunications and Media sector.
ACS Srl., 100%-owned by Exprivia, has operated in the market for more than twenty years and develops ground stations for the reception and processing of satellite data, a sector in which it has reached a top global position. The company is based in Rome and Matera and also has a branch in Darmstadt, Germany.
Exprivia Healthcare IT Srl is 100% owned by Exprivia. It is based in Trento and has share capital of Euro 1,982,190.00 (fully paid-up). It is a leading ICT company in the healthcare IT sector with a broad and diverse customer base. It develops and manages healthcare IT systems based on proprietary solutions and weboriented technologies, in addition to operating in the field of IT systems and software applications for regional public administration.
Exprivia Projects Srl is 100% owned by Exprivia. It is based in Rome and has share capital of Euro 242,000.00 (fully paid-up). It is specialised in designing and managing services and infrastructure for Call Centres, Contact Centres and Helpdesk services.
Exprivia Process Outsourcing Srl, 100% owned by Exprivia, based in Palermo and with a registered capital of Euro 100,000.00, provides Services and Infrastructure for Call Center, Contact Center and Help Desk.
Exprivia Enterprise Consulting Srl, wholly-owned by Exprivia, based in Milan and with fully paid-up share capital of Euro 1,500,000.00, represents the ERP / SAP centre of competence for the entire Exprivia Group in Italy and abroad; in addition to directly serving the manufacturing market in Italy, it provides other Group companies with the technical resources needed to develop SAP projects within their relevant product sector.
Consorzio Exprivia Scarl, 70% owned by Exprivia SpA, with the remaining 30% held by other Group companies wholly-owned by the holding company. This consortium's objective is to facilitate the Exprivia Group's participation in public tenders for project development and service provision.
Spegea S.C.a r.l. is 60% owned by Exprivia and has fully paid-up share capital of Euro 125,000.00. It is a School of Management based in Bari, organises and manages specialised seminars, training courses for companies and public administration in addition to the "Master in Management and Industrial Development" programme certified by ASFOR. It was founded 28 years ago by Confindustria Bari with the support of banks and institutions.
Exprivia SLU, a Spanish company 100%-owned by Exprivia, is the result of the merger by incorporation of the companies previously operating in Spain, Exprivia SL and Profesionales de Sistemas Aplicaciones y Productos SL (ProSap). The company has operated since 2002, also through its subsidiaries in Mexico (ProSAP SA de CV), Guatemala (ProSAP Centroamerica S.A.) and Perù (ProSAP Perù SAC), providing professional services and project development in the SAP environment, WEB portal development, and solutions and information systems for the Healthcare sector in the Spanish market and Latin American countries.
Exprivia do Brasil Serviços de Informatica Ltda, a Brazilian company specialised in IT Security solutions, operates at its headquarters in Sao Paulo. Exprivia SpA controls the company with a 52.22% share while the company Simest SpA holds 47.70%.
Exprivia Asia Ltd, a company operating in Hong Kong to act on behalf of Exprivia SpA, its sole shareholder, in the Far East in all market sectors considered strategic for the Exprivia Group. Exprivia Asia Ltda incorporated Exprivia IT Solutions (Shanghai) Co. Ltd as sole shareholder. The company is specialised in providing professional services in IT infrastructure and SAP.
Software Engineering Research & Practices S.r.l, 6% held by Exprivia SpA, is spin-off of the University of Bari. Its goal is to implement the results of university research in the field of software engineering and transfer them into business processes.
Cefriel is a consortium company in operation since 1988 as a centre of excellence for innovation, research and training in the Information & Communication Technology sector. Its main goal is to strengthen relations between universities and business through a multidisciplinary approach, starting from business needs and integrating the results of research, the best technologies on the market, emerging standards and the reality of industrial processes to innovate or develop new products and services. On 4 July 2014, Exprivia SpA acquired a 5.78% share.
Italy Care, a consortium of which Exprivia has been a member since 2013 together with Farmalabor Srl, Villa Maria Care & Research Group, and MASMEC Biomed. It was established on 18 March 2014 and represents a consolidated and effective expression of the healthcare services chain with the aim of optimising results and investments in healthcare. Penetration of international markets plays an essential role in the mission of Italy Care. Promoting a winning image in the healthcare chain that crosses borders is the goal of the consortium.
Distretto Tecnologico Pugliese ("DHITECH"), based in Lecce, intends to develop and integrate an interdisciplinary cluster for nanosciences, bioscience and infoscience according to the guidelines of the seventh framework programme and national research plan.
Distretto Tecnologico Nazionale per l'Energia ("DiTNE"), based in Brindisi, it was formed to provide support for research in production sectors in the field of energy, to encourage technology transfer needed by national and international players in the sector, and to favour connections between the worlds of research, production of goods and services, credit and the territory.
Distretto H-BIO Puglia, a consortium company based in Bari, it is known as the "Puglia technological district for human healthcare and biotechnologies". It will develop its operations in the strategic areas of products for molecular diagnostics and integrated diagnostics, treatment and rehabilitation products and bioinformatics products.
Consorzio SI-LAB: is a consortium for innovation services set up by Daisy-Net as a result of the MIUR funding project for new public and private laboratories. It brings together companies and universities in Puglia and operates in clusters with similar laboratories in Calabria and Sicily. The focus of SI-Lab is the integration of services, which are then experimented in the field of healthcare services.
Distretto Agroalimentare Regionale ("D.A.Re."), a consortium company based in Foggia, it acts as the interface for technology transfer from the Puglia research system to the agribusiness system. It provides services to support technological innovation by managing complex projects relating to industrial research and competitive development.
Consorzio Biogene was formed to develop the project known as "Public-private laboratory for the development of integrated bioinformatic tools for Genomics, Transcriptomics, and Proteomics (LAB GTP)".
Società cons. a r.l. "DAISY – NET" was formed to undertake initiatives for the development of an I.C.T. technology centre to be part of a network of regional technology centres.
Today we are one of the main players in the digital transformation of businesses, and we owe this to the wide range of skills and experience we have developed in more than twenty years of working in our various markets.
The Group's business model is distinguished by market segmentation, as follows:
The world of credit and finance is a complex one that arouses enthusiasm and fascination; however, it is not without its risks. Therefore, it is vital for every institution working within a rapidly evolving sector to have a partner like Exprivia to rely on for IT support.
From risk governance to data leveraging, from clouding to BYOD, from information security to nearshoring services, digital transformation works alongside the evolution of the credit and financial system.
With our long-term experience, we can support our customers with customised services and solutions designed to always keep pace with the unique needs of this market.
Exprivia's in-depth knowledge of typical market processes, combined with its solid technical skill and experience working with innovative technology suppliers and market leaders make it the ideal partner to promptly meet the evolving needs of customers.
Exprivia's solutions cover the following areas:
Exprivia's services and solutions cover the following areas:
More software, less hardware: the world of telecommunications is looking for innovative solutions that are, at the same time, less costly to manage. Operators in the sector are increasingly oriented towards excellence in customer satisfaction, an objective to be pursued through continual improvements in the quality perceived by users of the services. Exprivia accepts this challenge by offering innovative services and solutions for telecommunications, a market influenced by continual technological evolutions.
In telecommunications, technology is not simply a support but the core of the business. An essential condition at a time when all the operators are trying to minimize their operating costs but, at the same time, to increase customer satisfaction.
Exprivia offers operators and builders in the telecommunications sector extremely high-level technological competencies as it allows them to manage the Digital Transformation, reducing their operating costs with innovative solutions.
Exprivia is the ideal partner for the Service Providers that find the solution for being agile, efficient and customer centric in the virtualization of networks and applications.
Exprivia's great ability to build complex systems results in a reduction of operating costs for companies due to the simplicity of management. The quality of the services provided enables the customer to transfer a better customer experience to its users, enabling the single needs to be satisfied also through customer loyalty policies.
The main services and solutions that Exprivia provides to the telecommunications market are:
For more than 10 years, Exprivia's knowledge has supported the entire energy sector procurement, distribution and marketing sector. A solid experience in the field of fossil-derived resources has enabled the company to develop process governance systems that are currently applicable to the entire sector, with a particular focus on renewable energy and widespread parcelled sources.
The main process areas covered are:
Administration and finance, planning and control
Health, safety and environment (HSE)
Thanks to the introduction of innovative processes and services, Exprivia is capable of guaranteeing added value to all utilities that hope to overcome market challenges.
Support for the entire value chain of marketing and sales companies: management of digital channels, metering, billing and credit management, customer care management and sales solutions, relationship with networks, business intelligence, pricing & supply management, public lighting solutions, energy efficiency, smart metering and smart building.
In the distribution sector, Exprivia is specialized in developing solutions for the management of Network Development, Outage Management, Network Maintenance, Cartographic Service and Grid Topology.
In the production sector, Exprivia has gained competence in solutions for the management of plants and health & safety solutions.
Logistics automation, smart ticketing, info-mobility applications, line and vehicle maintenance, workforce management (public transport); public briefing, safety and logistics management, real-time dashboards and monitoring of the main KPIs, crowd management and monitoring, indoor positioning & Port Community System (ports and airports).
Notification of administrative acts, Telematic postman, ERP solutions, electronic billing, corporate KPI monitoring solutions.
Safety on flights, land and sea transport, control of operations areas, vehicles, and digitized environments: all this has become fundamentally important in today's world. Its long experience in military and civil environments enables Exprivia to build defence systems and above all prevention systems in which Information Technology is the best tool for protecting humans and vehicles, whether military or civilian.
There is an even more urgent need for preventive action such as monitoring and controlling scenarios: no longer a posteriori but continuous control of vehicles, operating environments and routes, to take action before a crisis can occur.
An essential condition for IT support for strategic decisions in critical situations is situational awareness, the correct perception of what happens in the operating scenarios in real time. Exprivia has again been a protagonist of the digital transformation, which now offers a real advantage to the sector, making it possible to analyse the complexity of heterogeneous information (images, videos, data, texts, symbols, voices and sounds) coming from a large number of sensors, worn, fixed and mobile, during flight, navigation, in orbit and on vehicles or drones.
In particular, Exprivia develops systems for command and control, supervision, presentation of maps, processing of geographical maps and rapid prototyping of air, land and sea transport consoles that ensure
maximum interaction with scenarios increasingly close to reality, also through augmented reality techniques, the richness of georeferenced information and social collaboration.
The acquisition of ACS in July 2016 opens new markets with a high technological value and strengthens the Group's innovation impetus even further.
ACS' offer focuses on the following areas:
Exprivia rationalizes and reaches excellent levels of performance in the company processes of its customers, by modifying the entire value chain: from analysis to consulting, implementation, the Application and System Management services, also using proprietary, vertical solutions. The strategic relationship between the processes (increasingly simplified, quick and interlinked) and the in-depth knowledge of specific business features enables Exprivia to offer a tool for increasing the company's prospects of success.
The recent research projects foreshadow a radical change in business scenarios: the fourth industrial revolution is in progress and will soon bring fully controlled, interconnected and automated production processes through the evolution of technology.
The expression "Industry 4.0", used for the first time at the Hanover Fair in 2011, defines this change in a panorama that is still evolving but already has precise development guidelines.
The four pillars of this transformation constitute the core of Exprivia's know-how and skills:
The impact of this transformation will be colossal, like that of the previous industrial revolutions brought over the centuries by steam, electricity, oil and computers and will only be quantifiable in the future. In the meantime, however, the clouding technologies are already influencing the work dynamics, which are evolving extremely rapidly. Every business must therefore introduce digital innovation in its industrial processes to gain the benefits of Smart Manufacturing.
Exprivia has taken this extraordinary opportunity by strengthening the entire industrial process with its digital solutions and automating the management of huge quantities of information in a simple, rational
and efficient way, thus converting it into a strong presence on the market. This is the natural evolution of the vertical offer that Exprivia develops on the various industrial markets.
Exprivia is currently one of the main Italian companies specialized in the design, development and integration of software solutions and innovative services, with its many corporate skills gained during its twenty years of activity and through a privileged relationship with SAP for over 10 years. Exprivia provides the most innovative SAP solutions, such as SAP Business Suite 4 SAP HANA (High-Performance Analytic Appliance, an architecture designed to manage extremely high rates of complex transactions and queries on the same platform) with a view to ensuring the go-to-market for its customers and giving them the most appropriate support in the development and innovation of their business processes. The main areas of activity are Administration, Finance and Control, Operation & Logistics, Business Analytics, Human Capital Management
500 professionals specialized in ERP and Extended ERP solutions, including over 300 certified resources, distributed across Italy and overseas (Spain, Mexico, Brazil, other Latina American countries and China) make Exprivia one of the leading players in the field of digital transformation.
Managing health is more than simply controlling healthcare expenditure. The operators in this sector have been saying this for years. Relations between the regional government, the healthcare facilities and the users must be improved by adopting technological innovations.
Exprivia is the ideal partner for a healthcare system oriented towards an excellent future that combines savings with efficacy and efficiency: its technological solutions for the healthcare system ensure absolute, simple and reliable technological coordination between the regional government and the healthcare provided by local health authorities, hospitals, ARNAS and IRCCS research centres, general and specialized hospitals, and domiciliary care systems.
A team of 350 specialists, 30 years of operation in the IT sector, solutions and services at 500 hospitals for 20 million patients confirm the efficacy of the Exprivia solutions in satisfying the needs of the healthcare sector, of fundamental importance for the economy and development of every region.
The Regions with the most efficient health service are those that spend the most but also spend the best, that is, without causing overruns of the regional budgets.
The Exprivia systems connect the entire Regional Healthcare system, from the administrative and management centres to the public and private hospital facilities along the entire supply chain, to the individual professionals and on-line services for users, so as to get the most from every resource.
This is done using the e4Cure suite, expressly designed for the healthcare environment, which coordinates the two main branches of the health system:
creating interface flows that ensure total, structured control.
In addition to its ISO 9001 quality certification, Exprivia has set up an ISO 13485 Medical Device quality system for monitoring clinical risks.
Cybersecurity, digital identity, digital documents and electronic payments: the Digital Agenda for Italy designs the economy 4.0, increasingly based on Big Data and the IoT.
You can call it e-government, e-gov or digital administration: for us, it is just called innovation, simplicity and reliability for the protection of businesses, residents, public employees and the government.
Bureaucratic streamlining through the digitalised management of the PA - along with organisational renewal activities - now allows for the reconciliation of spending optimisation with service quality, as it provides users with multiple rapid and effective communication channels that connect residents with public institutions and provide the latter with a series of worry-free and completely secure tools for completing administrative procedures.
From this perspective, Exprivia has been able to rely on much of its experience in optimising processes for large private enterprises, which it has reconceptualised based on the needs of central and local governments and broken down into a range of areas, including:
Working for the world to come requires not only a lively imagination, but also and especially solid training that keeps us continuously updated on trends and transformations under way to anticipate the needs of the market.
The Group has a team of highly-skilled experts specialised in several different technological areas:
The result of revenues by business area in the first quarter of 2017 amounted to Euro 35.9 million, compared with Euro 31.6 million last year.
Details of revenues relating to 31 March 2017 are shown below, compared with the figures for the same period of the previous year, broken down by business area (in K €).
| Business Areas | 31/03/2017 | 31/03/2016 | Variation | Variation% |
|---|---|---|---|---|
| Banking & Finance | 5,803 | 5,624 | 178 | 3.2% |
| Energia e Utilities | 7,421 | 4,518 | 2,903 | 64.3% |
| Industry | 2,961 | 3,178 | (217) | $-6.8%$ |
| Oil e Gas | 3,631 | 3,136 | 495 | 15.8% |
| Telco & Media | 4,855 | 5,047 | (192) | $-3.8%$ |
| Healthcare | 5,199 | 5,508 | (309) | $-5.6%$ |
| Aerospace & Defence | 4,122 | 2,406 | 1,716 | 71.3% |
| International Business | 1,666 | 1,972 | (306) | $-15.5%$ |
| Other | 232 | 220 | 12 | 5.5% |
| Total | 35,890 | 31,609 | 4,281 | 13.5% |
Details of the net revenues relating at 31 March 2017 compared with the figures for the same period of the previous year, broken down by business segment (€/1000).
| Exprivia Group (value in k Euro) | 31/03/2017 | 31/03/2016 | Variation | Variation% |
|---|---|---|---|---|
| Projects and Services | 30,531 | 27,389 | 3.142 | 11.5% |
| Maintenance | 4,109 | 3,089 | 1,020 | 33.0% |
| HW/ SW third parties | 833 | 712 | 120 | 17.0% |
| Own licences | 183 | 199 | (16) | $-8.0%$ |
| Other | 234 | 220 | 14 | 6.4% |
| Total | 35,890 | 31,609 | 4.281 | 13.5% |
Details of revenues relating to 31 March 2017 are shown below, for the same period of the previous year, broken down by private and public sector (in K €).
| Exprivia Group (value in k Euro) | 31/03/2017 | Effect % | 31/03/2016 | Effect % | Variations % |
|---|---|---|---|---|---|
| PRIVATE | 30,272 | 84.3% | 24,473 | 77.4% | 23.7% |
| PUBLIC | 5,618 | 15.7% | 7,136 | 22.6% | $-21.3%$ |
| Total | 35,890 | 31,609 | 13.5% |
Details of revenues relating to 31 March 2017 are shown below, compared with the figures the same period of the previous year, broken down by geographical area (in K €).
| Exprivia Group (value in k Euro) | 31/03/2017 | Effect % | 31/03/2016 | Effect % | Variations % |
|---|---|---|---|---|---|
| ITALY | 31,782 | 88.6% | 29,083 | 92.0% | 9.3% |
| FOREIGN | 4,109 | 11.4% | 2,526 | 8.0% | 62.6% |
| Total | 35,890 | 31,609 | 13.5% |
The Banks, Finance and Insurance Business Unit closed the first quarter of 2017 with an increase of 3.2% compared with the 2016 results (Euro 5.8 million in the first quarter of 2017 compared to Euro 5.6 million in the first quarter of 2016), despite the uncertain trend typical of the first quarter in this sector for several years now, confirming a trend that results in new investments being postponed until at least the end of the second quarter.
This also explains the way in which the various components of the BU contributed, to varying extents, to the quarter's results: the positive impacts arise either from projects undertaken in the autumn of 2016 or from new projects as a result of regulatory requirements, negative impacts arise either from important contracts concluded in 2016 or from postponements of new launches. Indeed:
In conclusion a positive quarter which, despite not all the opportunities in the pipeline having materialised, benefited from the Business Development effort initiated last year and further paved the way to confirming the growth hypotheses projected in 2017.
In the first quarter of 2017, the Utilities Business Unit recorded revenues of Euro 7.4 million compared to Euro 4.5 million in the first quarter of 2016. The increase compared with the previous period of 2016 (+64.3%) is due to the contracts already commenced during 2016 that became fully operational in the first quarter of 2017.
The Utilities Business Unit is continuously active in pursuing the operational efficiency and digital transformation goals of its customers by participating in innovative projects with an international scope.
In the last quarter of 2016, Exprivia was awarded various contracts in the "water" sector (Euro 0.4 million), the "Waste Management" sector (EUR 1 million) and the "Energy" sector (Euro 0.4 million), the effects of which will begin to be seen from the second quarter of 2017.
In the first quarter of 2017, a new contract for approximately Euro 5 million was acquired in the field of Energy and two new contracts in the field of "Waste Management" (Euro 0.9 million Euro) and "Logistics PI" (EUR 5 million) are in the acquisition stage.
In the first quarter of 2017, the Industry Business Unit closed with revenues of Euro 3 million compared to Euro 3.2 million in the first quarter of 2016.
Industry results in the first quarter of 2017 were largely stable compared to the first quarter of 2016; the growth trend seen last year was consolidated, particularly with regard to professional services, with supply rather than demand dynamics now acting as the biggest brake on growth.
The customer base was provided with design services, application management services and in-cloud services, as part of mature offers such as those relating to ERP, HCM and extended ERP processes, rather than relating to highly innovative issues, like CRM solutions applied to after sales processes.
Good results were obtained in international rollouts in Europe and the Far East for customers with head offices in Italy.
The launch last year by the software vendor Sap of innovative solutions based on the Hana platform is gaining the confidence of the market, and investments made in this respect are positioning us as one of the leaders on the Italian market. Again in terms of the offer, positive results were achieved in the development of web solutions and portals, bringing the efforts capitalised on in our Research and Development laboratories to the market.
For the Oil & Gas Business Unit, the first quarter of 2017 saw a marked leap forward in revenues, which grew compared with both the corresponding period of 2016 (+ 15.8%) and the previous quarter (+ 6%), consolidating the trend that began at the end of 2016. This result is attributable to the entry into full operation of the contracts acquired in the third quarter of 2016 and the start-up of important digital transformation initiatives for some operators in the energy market in Italy. In particular, the share of revenues from Gas and Oil logistics optimisation projects increased. Corporate projects in the area of Administration, Finance and Control and projects for the improvement of processes in the area of Procurement and HCM also provided a strong boost to revenue growth. Revenues in the area of Portals and Web Applications also grew; the BU was in fact involved in some important initiatives to improve the Digital Customer Experience of Light and Gas users and, more generally, supported its customers in the development of their digital communication strategies. During the quarter the BU continued to develop its transversal offer in the area of Business Process Management & Integration and Analytics, acquiring important projects and thus further consolidating its competitive positioning.
The growth in revenues was made possible both through a plan to hire new resources — Analysts and Web Developers — and through a plan for the empowerment of the skills of staff of the BU that had already been started during the last quarter of 2016 and that has allowed the BU to acquire numerous technical certifications.
The Telco & Media Business Unit closed the first quarter of 2017 with revenues of Euro 4.9 million, substantially in line with the figures for the first quarter of 2016 (Euro 5 million).
During the first quarter of 2017, the Telco & Media business unit continued to consolidate business relationships with the main players in the field of telecommunications in Italy, acquiring major contracts linked to the activation of new broadband access networks, to the automation and streamlining of the business processes of its customers, to vertical data analytics solutions for the monitoring of quality KPIs and for the predictive maintenance of fixed and mobile network services, and the implementation of innovative solutions for telecommunications security and privacy.
In the first quarter of 2017, the Healthcare Business Unit recorded revenues of Euro 5.2 million compared to Euro 5.5 million in the first quarter of 2016, down 5.6% compared to the results for the same period of the previous year.
Compared to the same period of 2016, the PAL area recorded growth of 1% in the first quarter of 2017, while the health area saw revenues reduce by approximately 7%, due mainly to the termination or reworking of some services for the public sector for which the launch of the contracts acquired in the second half of 2016 has not yet taken place due to procedural delays and administrative matters.
The Public Sector Business Unit closed the first quarter of 2017 with revenues of approximately Euro 1.7 million, down slightly compared to the same period of the previous year.
During the first quarter, the Central Public Administration began activities relating to a large Digital Transformation project involving the HR systems managed by the MEF, following a tender awarded in 2016.
In this first quarter, new important contracts were awarded to Exprivia both in Central Public Administration and in Local Public Administration, which will have an impact on revenues in the coming quarters
All this in a context where we are beginning to see the first signs of recovery in ICT investments, necessary in order to implement the Digital Transformation strategy broadly defined by the Government and various government agencies.
In the first quarter of 2017, the Defence & Aerospace Business Unit achieved revenues of Euro 2.5 million compared to Euro 0.8 million in the same period of the previous year (2016). This change is mainly attributable to the contribution arising from the acquisition of the new equity investment in ACS Srl.
More specifically, despite the confirmed contracting market trend due to a heavy focus on expenditure reduction by the sector's main industries and entities, Exprivia's Defence & Aerospace business launched new orders in air traffic control in the first quarter.
For ACS, in Defence & Aerospace the market confirmed the increased incidence over the quarter of service contracts (maintenance, operations support, specialised consulting) supplied to customers, compared to contracts for the development of SW systems. Of particular note are the contracts for the maintenance of DFEP components under the Copernicus programme, the extension of the maintenance services for the Payload Data Segment (PDS) of the ESA's Cryosat scientific mission, the extension of engineering support services for the operation and maintenance of the SW of the Sentinel-2 system, and engineering support for Cosmo Second Generation (satellite system of the Italian Space Agency).
Exprivia's activities on non-Italian markets registered a sharp drop in revenues in 2016, from Euro 10.4 million to Euro 7.8 million. The first quarter of 2017, however, was almost in line with the previous year for Mexico and Guatemala, up in Brazil and continuing to drop in Spain. In Spain, where the Exprivia Group was present through two subsidiaries, Profesionales de Sistemas Aplicaciones y Productos SL (ProSap) and Exprivia SL., their merger was completed in 2016 by combining the commercial and technical structures to strengthen the offer of ERP applications and SAP services for industry and distribution of Business Intelligence solutions for the Healthcare sector.
The reorganisation referred to above, the results of which during 2016 were not entirely satisfactory, and are still not being seen in the first quarter of 2016, is beginning nonetheless to show interesting commercial signs. The economic-capital restructuring, on the other hand, resulted in the stabilisation, in the last quarter, of revenue lines through the containment of market risks. The cost structure was rationalised and adapted to potential revenues. The SAP business area largely maintained activities with its customer base. The Business Intelligence area was reduced considerably, essentially owing to the decrease in investments by the biggest customer in the Healthcare sector. Despite decreasing revenues, the Spanish company's first quarter saw a substantial recovery in EBTDA.
In Central America, where the Exprivia Group operates directly through Prosap Mexico and Prosap Centroamerica (Guatemala), sales and delivery actions continued with major private and public companies operating in the infrastructure construction sector in Latin American countries. The Mexican company was also the subject of an economic-capital restructuring. The first quarter showed a slight decrease in revenues and an equally slight decrease in EBTDA.
With a view to stabilising relations in the area and better monitoring country risk, sales and development initiatives were strengthened throughout the area; the branch in Ecuador and the company Prosap Peru, the latter awaiting sales initiatives in the healthcare and telecommunications domains which could inject fresh impetus.
In Brazil, revenues for the company Exprivia do Brasil Serviços de Informatica Ltda increased significantly compared to the previous financial year thanks to the sales initiatives launched during 2016. Profitability also increased significantly and more than proportionally to the increase in revenues. In China, where "Exprivia IT Solutions (Shanghai) Co. Ltd", whose sole shareholder is "Exprivia Asia Ltda" in Hong Kong, has developed its business in providing professional services in IT infrastructure and SAP. The first quarter of 2017 showed a decrease in turnover of 18.8% compared to 2016; efforts to rationalise and achieve greater efficiency have led to a reduction in costs which, despite the decline in revenues, have improved profitability. The customer base is still currently made up of Italian companies and institutions operating in China and European manufacturing industries.
On 16 March 2017, the Company's Board of Directors, based on the prior favourable opinion of the Board of Statutory Auditors, appointed Valerio Stea, the new administrative manager of the holding company Exprivia Spa, as Executive Manager responsible for preparing the corporate accounts of the Exprivia Group.
On 30 March 2017, Exprivia SpA took over the shares held by Christian Maggioni in Exprivia do Brasil Serviços de Informatica Ltda, bringing its shareholding up to 52.30%.
On 27 April 2017, the shareholders' meeting of Exprivia SpA met on first call to approve the financial statements as at 31/12/2016. The Corporate Governance and Ownership Report and the Remuneration Report for Directors and Key Management of the Exprivia Group were approved during the same shareholders' meeting. Both reports are published on the company's website in the "Investor Relations – Corporate Governance – Corporate Information" section.
The ordinary shareholders' meeting also approved the issuing of a new authorisation to purchase and dispose of own shares within the meaning of Articles 2357 and 2357-ter of the Italian Civil Code and proceeded to nominate the new corporate bodies, the offices of the previous bodies having expired upon approval of the 2016 financial statements.
The new Board of Directors, whose term of office will expire when the year-end 2019 Financial Statements are approved, is composed as follows:
| Board Member | Office | Executive/ Non Executive |
Place and Date of Birth | Gender | First Appointment |
|---|---|---|---|---|---|
| Domenico Favuzzi | Chairman and Chief Executive Officer |
Executive | Molfetta (BA) 18/04/1962 | M | 29 June 2005 |
| Dante Altomare | Vice Chairman | Executive | Molfetta (BA) 18/09/1954 | M | 29 June 2005 |
| Angela Stefania Bergantino |
Independent Director (*) |
Non Executive |
Messina24/09/1970 | F | 23 April 2014 |
| Eugenio Di Sciascio | Independent Director (*) |
Non Executive |
Bari 13/03/1963 | M | 27 April 2017 |
| Filippo Giannelli | Director | Executive | Camposampiero (PD) 16/09/1971 |
M | 27 April 2017 |
| Marina Lalli | Independent Director (*) |
Non Executive |
Bari 08/01/1969 | F | 27 April 2017 |
| Alessandro Laterza | Independent Director (*) |
Non Executive |
Bari 09/02/1958 | M | 31 March 2008 |
| Valeria Savelli | Director | Non Executive |
Matera 15/10/1962 | F | 28 April 2011 |
| Gianfranco Viesti | Independent Director (*) |
Non Executive |
Bari 09/08/1958 | M | 23 April 2014 |
(*) Independent Directors pursuant to art. 3 of the Corporate Governance Code adopted by Borsa Italiana
The new Board of Statutory Auditors, whose term of office will end when the year-end 2019 Financial Statements are approved, is composed as follows:
| Board Member | Office | Place and Date of Birth | Gender |
|---|---|---|---|
| Ignazio Pellecchia | Chairman | Bari 28/06/1968 | M |
| Anna Lucia Muserra | Standing Auditor | Genoa 21/09/1962 | F |
| Gaetano Samarelli | Standing Auditor | Molfetta (BA) 07/12/1945 | M |
| Rosa Occhiogrosso | Alternate Auditor | Bari 30/01/1978 | F |
| Mauro Ferrante | Alternate Auditor | Bisceglie (BA) 01/11/1964 | M |
There were no significant events worth noting.
The tables below show the company workforces as at 31 March 2017, compared with those at 31 March 2016. In particular, the first table (Table 1) shows the number of resources and the average resources per company. In terms of percentage, part-time workers make up around 25.87% of all employees and work on a part-time basis in various arrangements of contractual working hours. The second table (Table 2) shows the workforce expressed in full-time equivalent (annual work units excluding resources subject to CIGO [ordinary wages guarantee fund]/CIGD [extraordinary wages guarantee fund]/absences due to long-term illnesses).
| Company | Employees | Average employees | Temporary workers | Average temporary workers |
||||
|---|---|---|---|---|---|---|---|---|
| 31/03/2016 | 31/03/2017 | 31/03/2016 | 31/03/2017 | 31/03/2016 | 31/03/2017 | 31/03/2016 | 31/03/2017 | |
| Exprivia SpA | 676 | 662 | 676 | 663 | 2 | 2 | 2 | 2 |
| Exprivia Healthcare IT Srl | 332 | 326 | 333 | 327 | - | - | ||
| Exprivia Enterprise Consulting Srl | 145 | 119 | 147 | 120 | 1 | 1 | 1 | 1 |
| Exprivia Digital Financial Solutions Srl |
197 | 203 | 196 | 200 | - | - | - | - |
| Exprivia Projects Srl | 226 | 254 | 218 | 249 | - | - | - | - |
| Exprivia Process Outsourcing Srl | - | 257 | - | 250 | - | - | - | - |
| Exprivia Telco & Media Srl | 361 | 361 | 359 | 358 | 0 | - | 0 | - |
| Advanced Computer Systems Srl | 0 | 63 | - | 63 | - | - | - | - |
| Exprivia IT Solutions Shanghai | 18 | 12 | 17 | 13 | 1 | 1 | 1 | 1 |
| Exprivia SLU (Spain)/ProSap SA de CV/ProSap Centroamerica SA/ |
86 | 83 | 89 | 85 | 6 | - | 6 | 0 |
| Exprivia do Brasil Servicos de Informatica Ltda |
21 | 21 | 21 | 21 | 7 | 7 | 8 | 7 |
| Spegea Scarl | 8 | 7 | 8 | 7 | 1 | 1 | 1 | 1 |
| Total | 2070 | 2368 | 2064 | 2356 | 18 | 12 | 19 | 12 |
| Executives | 39 | 46 | 41 | 46 | - | - | - | - |
| Middle Managers | 184 | 194 | 191 | 194 | - | - | - | - |
| Company | Employees | Temporary workers | |||
|---|---|---|---|---|---|
| 31/03/2016 | 31/03/2017 | 31/03/2016 | 31/03/2017 | ||
| Exprivia SpA | 654 | 644 | 2 | 2 | |
| Exprivia Healthcare IT Srl | 319 | 307 | - | - | |
| Exprivia Enterprise Consulting Srl | 139 | 109 | 1 | 1 | |
| Exprivia Digital Financial Solutions Srl | 192 | 193 | - | - | |
| Exprivia Projects Srl | 149 | 144 | - | - | |
| Exprivia Process Outsourcing Srl | - | 169 | - | - | |
| Exprivia Telco & Media Srl | 341 | 357 | 0 | - | |
| Exprivia IT Solutions Shanghai | 17 | 12 | 1 | 1 | |
| Exprivia SLU (Spain)/ProSap SA de CV/ProSap Centroamerica SA/ |
86 | 83 | 6 | - | |
| Advanced Computer Systems Srl | 60 | - | |||
| Exprivia do Brasil Servicos de Informatica Ltda | 21 | 21 | 7 | 7 | |
| Spegea Scarl | 7 | 6 | 1 | 1 | |
| Total | 1925 | 2105 | 18 | 12 | |
| Executives | 39 | 46 | |||
| Middle Managers | 183 | 192 |
In both tables, the numbers of employees in March 2017 for the companies Exprivia SLU (Spain)/ ProSap SA de CV/ ProSap Centroamerica SA, were revised compared to March 2016 as a result of a reclassification of the staff contract categories to align them with Italian categories.
28
The organisational structure of the Exprivia Group functionally integrates all staff services of the Group subsidiaries within the consolidation area, thereby optimising the operational structures of each company to ensure effectiveness and efficiency in supporting the business of the Group.
The Administration, Finance and Control Department unites the Group Finance function with the Administration, Finance and Control functions.
The Human Resource Department reports directly to the Chairman of the Exprivia Group, who is the head of the department ad interim.
The Internal Audit, Merger & Acquisition, Corporate Affairs and International Business Departments also report to the Chairman.
The Group companies constantly collaborate with each other for commercial, technological and application development. In particular the following should be pointed out:
A cash pooling relationship is in place between the Italian Group companies, and all companies adhere to tax consolidation based on a specific regulation.
In compliance with applicable legislative and regulatory provisions, and in particular with:
(i) the "Regulations on transactions with related parties – CONSOB resolution no. 17221 of 12 March 2010" as amended by resolution no. 17389 of 23 June 2010; (ii) the outcome of the subsequent "consultation" published by CONSOB on 24 September 2010; (iii) the CONSOB notice on guidelines for applying the regulations published on 24 September 2010; (iv) CONSOB notice no. 10094530 of 15 November 2010 with additional clarifications;
On 27 November 2010 the Board of Directors of the Company adopted a "Procedure for Transactions with Related Parties", setting forth provisions concerning transactions with related parties in order to ensure the transparency and substantive and procedural correctness of operations with related parties carried out directly or through companies that are directly and/or indirectly controlled by Exprivia (the "Exprivia Group").
This procedure replaced the one previously in force, which was introduced on 26 March 2007, and is available on the company's website in the section "Corporate > Corporate Governance > Corporate Information".
The transactions with related parties carried out in the first quarter of 2017 fall within the scope of normal business operations and were carried out on an arm's length basis. No atypical or unusual transactions were carried out with related parties.
Below are shown the economic and equity relationships between the Exprivia Group and the parent company Abaco Innovazione SpA as at March 31, 2017, compared with the figures as of December 31, 2016.
| Description | 31/03/2017 | 31/12/2016 | Variation |
|---|---|---|---|
| Exprivia S.p.A. | 3,089,898 | 3,066,588 | 23,310 |
| TOTAL | 3,089,898 | 3,066,588 | 23,310 |
The balance as at 31 March 2017 includes, for an amount of Euro 2,985,338, the receivable relating to an unsecured loan with no guarantees taken out in 2016 with the parent company Abaco Innovazione SpA and disbursed for Euro 1,680,000 in cash and, for Euro 1,305,338 as reclassification of payables outstanding as at 31 December 2015. The balance also included Euro 98,460 in interest income accrued on said loan and receivables for administrative services (Euro 6,100).
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Exprivia SpA | 94,170 | 94,170 | |
| TOTAL | 94,170 | 94,170 |
The balance as at 31 March 2017 refers to costs for the guarantee given by the parent company to obtain the Euro 25 million loan disbursed to Exprivia SpA by a pool of banks in April 2016.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Exprivia S.p.A. | 22,819 | 6,918 | 15,901 |
| TOTAL | 22,819 | 6,918 | 15,901 |
The balance as at 31 March 2017 refers, for Euro 22,819, to interest on the loan granted to the parent company.
31
2017 started well for our group, as expected at the beginning of the year. The Group is therefore back on the path to growth and increased profitability.
As widely announced in previous quarters, contracts in the BPO services market have moved into the operational phase and the parent company showed a positive performance in the Energy & Utilities and Public Sector markets.
Our group, confident in the trust of its customers, thus continues to grow in digital transformation technologies and solutions, providing HRM and Marketing platforms for Energy & Utilities customers, and Big Data platforms for Finance, and also SAP Mobile and Aerospace.
Abroad the Group recorded a marked recovery in profitability.
All these elements, which confirm the projections in the plans for 2017, lead us to hold a positive outlook for the coming quarters, increasingly characterised by a drive towards digitally transforming companies and public administration.
Interim Report on Operations as at 31 March 2017
32
| Amount in Euro | |||
|---|---|---|---|
| Note | 31.03.2017 | 31.12.2016 | |
| Land and buildings | 13,648,056 | 13,869,992 | |
| Other assets | 2,020,493 | 2,171,240 | |
| Property, plant and machinery | 15,668,549 | 16,041,232 | |
| Goodwill | 67,391,066 | 67,428,110 | |
| Goodwill and other assets with an indefinite useful life | 67,391,066 | 67,428,110 | |
| Intangible assets | 3,938,229 | 4,112,591 | |
| Research and development costs | 4,020,847 | 4,188,397 | |
| Work in progress and advances | 3,616,152 | 3,314,652 | |
| Other Intangible Assets | 11,575,228 | 11,615,640 | |
| Investments in other companies | 167,661 | 167,561 | |
| Shareholdings | 167,661 | 167,561 | |
| Receivables to parent companies | 2,596,910 | 2,596,910 | |
| Other receivables | 222,635 | 209,659 | |
| Derivative financial instruments | 34,568 | 34,568 | |
| Other financial assets | 2,854,113 | 2,841,137 | |
| Other receivables | 1,772,942 | 1,772,942 | |
| Other financial assets | 1,772,942 | 1,772,942 | |
| Tax advances/deferred taxes | 3,000,842 | 2,943,418 | |
| Deferred tax assets | 3,000,842 | 2,943,418 | |
| NON-CURRENT ASSETS | 102,430,402 | 102,810,040 |
| Amount in Euro | ||
|---|---|---|
| 31.03.2017 | 31.12.2016 | |
| Trade receivables | 66,146,926 | 59,422,457 |
| Other receivables | 9,634,998 | 9,527,989 |
| Tax receivables | 2,656,148 | 2,796,038 |
| Trade receivables and other | 78,438,072 | 71,746,484 |
| Stock | 1,033,606 | 1,019,248 |
| Stock | 1,033,606 | 1,019,248 |
| Work in progress to order | 17,886,240 | 15,652,180 |
| Work in progress to order | 17,886,240 | 15,652,180 |
| Other receivables | 569,106 | 1,572,833 |
| Receivables from parent | 492,989 | 469,678 |
| Other Financial Assets | 1,062,095 | 2,042,511 |
| Current banks | 5,723,894 | 12,455,496 |
| Cheques and unpresented effects | 32,425 | 39,437 |
| Cash resources | 5,756,319 | 12,494,933 |
| Shareholdings in subsidiaries | 462,748 | 462,748 |
| Assets classified as owned for sales and those included in aggregates for disposal |
462,748 | 462,748 |
| CURRENT ASSETS | 104,639,080 | 103,418,104 |
| ASSETS | 207,069,482 | 206,228,144 |
| Amount in Euro | |||
|---|---|---|---|
| 31.03.2017 | 31.12.2016 | ||
| Share Capital | 25,154,899 | 25,154,899 | |
| Share capital | 1 | 25,154,899 | 25,154,899 |
| Share premium | 18,081,738 | 18,081,738 | |
| Share Premium Reserve | 1 | 18,081,738 | 18,081,738 |
| Revaluation reserve | 2,907,138 | 2,907,138 | |
| Revaluation reserve | 1 | 2,907,138 | 2,907,138 |
| Legal reserve | 3,931,382 | 3,931,382 | |
| Revaluation reserve | 1 | 3,931,382 | 3,931,382 |
| Other reserves | 20,547,914 | 20,579,266 | |
| Other reserves | 1 | 20,547,914 | 20,579,266 |
| Retained earning/loss | 5,067,759 | 2,246,057 | |
| Profits/Losses for previous periods | 1 | 5,067,759 | 2,246,057 |
| Profit/Loss for the period | 931,732 | 2,838,069 | |
| SHAREHOLDERS' EQUITY | 76,622,563 | 75,738,549 | |
| Minority interest | 1,017,042 | 994,361 | |
| GROUP SHAREHOLDERS' EQUITY | 75,605,520 | 74,744,189 |
| Amount in Euro | 31.03.2017 | 31.12.2016 |
|---|---|---|
| Non-current bond | 1,844,186 | 1,839,297 |
| Non-current bond | 1,844,186 | 1,839,297 |
| Non-current bank debt | 24,899,596 | 24,624,683 |
| Non-current bank debt | 24,899,596 | 24,624,683 |
| Trade payables after the financial year | 668,840 | 698,021 |
| Payables to other lenders | 10,000 | 10,000 |
| Derivative financial instruments | 11,393 | 12,503 |
| Other financial liabilities | 690,233 | 720,524 |
| Tax liabilities and amounts for social security payable after the financial year |
2,617,042 | 2,881,594 |
| Other financial liabilities | 2,617,042 | 2,881,594 |
| Amounts payable to pension and social security institutions |
409,188 | 436,004 |
| Other no current liabilities | 409,188 | 436,004 |
| Other provisions | 990,179 | 1,068,718 |
| Provision for risks and charges | 990,179 | 1,068,718 |
| Employee severance indemnities | 10,325,845 | 10,403,774 |
| Employee provisions | 10,325,845 | 10,403,774 |
| Provisions for deferred taxes | 1,189,219 | 1,189,221 |
| Deferred tax liabilities | 1,189,219 | 1,189,221 |
| NON CURRENT LIABILITIES | 42,965,488 | 43,163,815 |
| Amount in Euro | ||
|---|---|---|
| 31.03.2017 | 31.12.2016 | |
| Current bond | 1,554,873 | 1,508,246 |
| Current bond | 1,554,873 | 1,508,246 |
| Current bank debt | 24,145,509 | 25,845,581 |
| Current bank debt | 24,145,509 | 25,845,581 |
| Trade payables | 18,767,319 | 18,816,906 |
| Trade payables | 18,767,319 | 18,816,906 |
| Advances | 3,241,304 | 3,394,884 |
| Advances payment on work in progress contracts | 3,241,304 | 3,394,884 |
| Payables for equity investments | 359,999 | 359,999 |
| Other payables | 936,569 | 925,172 |
| Other financial liabilities | 1,296,568 | 1,285,171 |
| Tax liabilities | 11,380,503 | 12,360,112 |
| Tax liabilities | 11,380,503 | 12,360,112 |
| Payables to welfare and social security institutions | 5,157,262 | 6,866,252 |
| Other payables | 21,938,093 | 17,248,628 |
| Other current liabilities | 27,095,355 | 24,114,880 |
| CURRENT LIABILITIES | 87,481,431 | 87,325,780 |
| TOTAL LIABILITIES | 207,069,482 | 206,228,144 |
| Amount in Euro | |||
|---|---|---|---|
| 31.03.2017 | 31.03.2016 | ||
|---|---|---|---|
| Revenue from sales and services | 35,872,234 | 31,654,400 | |
| Revenues | 2 | 35,872,234 | 31,654,400 |
| Other revenues and income | 135,188 | 174,724 | |
| Grants related to income | 135,632 | 441,901 | |
| Increase in capitalised expenses for intenal projects | 620,627 | 316,844 | |
| Other income | 3 | 891,447 | 933,469 |
| Var. stock of products being processed, semi-finished items | 17,362 | (45,010) | |
| Variation in stock of finished products and products being processed |
4 | 17,362 | (45,010) |
| PRODUCTION REVENUES | 36,781,043 | 32,542,859 | |
| Costs of raw, subsid. & consumable mat. and goods | 5 | 2,644,336 | 2,500,453 |
| Salaries | 6 | 24,940,435 | 22,258,138 |
| Costs for services | 7 | 4,940,998 | 4,726,199 |
| Costs for leased assets | 8 | 1,036,201 | 1,061,824 |
| Sundry operating expenses | 9 | 107,034 | 172,254 |
| Provisions | 10 | 79,205 | 98,833 |
| TOTAL PRODUCTION COSTS | 33,748,209 | 30,817,701 | |
| DIFFERENCE BETWEEN PRODUCTION COSTS AND REVENUES | 3,032,834 | 1,725,158 |
| Amount in Euro | |||
|---|---|---|---|
| 31.03.2017 | 31.03.2016 | ||
| Ordinary amortisement of intangible assets | 704,502 | 520,453 | |
| Ordinary amortisement of tangible assets | 352,796 | 480,477 | |
| Devaluation of credits included in working capital | 103,084 | 60,562 | |
| Amortisation, depreciation and write-downs | 11 | 1,160,382 | 1,061,492 |
| OPERATIVE RESULT | 1,872,452 | 663,666 | |
| Financial income and charges | 12 | (320, 958) | (625, 435) |
| PRE-TAX RESULT | 1,551,493 | 38,231 | |
| Income tax | 13 | 619,761 | 311,749 |
| PROFIT OR LOSS FOR THE PERIOD | 14 | 931,732 | (273, 518) |
| Attributable to: | |||
| Shareholders of holding company | 894,479 | (287, 193) | |
| Minority interest | 37,254 | 13,675 | |
| Earnings per share losses | 15 | ||
| Basic earnings per share | 0.0192 | (0.0058) | |
| Basic earnings diluted | 0.0192 | (0.0058) |
| Amount in Euro | ||
|---|---|---|
| Description | 31/03/2017 | 31/03/2016 |
| Profit for the year | 931,732 | (273, 518) |
| Total other comprehensive income (loss) will not subsequently be reclassified in profit (loss) |
||
| Other gains (losses) total that will be subsequently reclassified to profit (loss) for the period we |
||
| Change in translation reserve | (32, 464) | 103,307 |
| Profit (loss) on cash flow hedge derivatives | 1,111 | |
| Total other comprehensive income (loss) that will subsequently be reclassified in profit (loss) |
(31, 353) | 103,307 |
| NET COMPREHENSIVE INCOME FOR THE PERIOD | 900,379 | (170, 211) |
| attributable to: | ||
| Group | 863,125 | (199.092) |
| Minority interest | 37,254 | 28,881 |
| Amount in Euro | Company Capital |
Own shares Share Premium Fund |
Reval. Reserve |
Legal Reserve |
Other Reserves |
Profits (Losses) brought forward |
Profit (Loss) for Total Net Worth the period |
Minority Interests |
Total Group Net Worth |
||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 01/01/2015 | 26,979,658 | (569, 389) | 18,081,738 2,907,138 3,561,670 16,712,971 | 2,014,991 | 3,037,163 | 72,725,940 | 959,836 | 71,766,104 | |||
| Reclassification previous year's profit to previous year's profit |
147,826 | 1,355,940 | 1,533,397 | (3,037,163) | |||||||
| Dividend | (1,452,751) | (1,452,751) | (1,452,751) | ||||||||
| Acquiring equity attributable third Prosap Group |
(149,999) | (149,999) | (36, 442) | (113, 557) | |||||||
| Purchase of own shares | (656, 253) | (349, 879) | (1,006,132) | (1,006,132) | |||||||
| Components of comprehensive income |
|||||||||||
| Profit (loss for the period) | 4,597,608 | 4,597,608 | 82,217 | 4,515,391 | |||||||
| Effects of applying IAS 19 | 131,331 | 131,331 | 2,926 | 128,405 | |||||||
| Translation reserve | (648, 744) | (648, 744) | (213, 500) | (435, 244) | |||||||
| Total income (loss) for the year Overall |
4,080,195 | (128, 356) | 4,208,550 | ||||||||
| Balance at 31/12/2015 | 26,979,658 (1,225,642) | 18,081,738 2,907,138 3,709,496 17,201,619 | 1,945,640 | 4,597,608 | 74,197,255 | 795,038 | 73,402,218 | ||||
| Reclassification previous year's profit to previous year's profit |
221,886 | 3,110,712 | 215,075 | (3,547,673) | |||||||
| Dividend | (1,049,935) | (1,049,935) | (1,049,935) | ||||||||
| Change in consolidation scope | 85,342 | 85,342 | 85,342 | ||||||||
| Purchase of own shares | (599, 117) | (195.691) | (794, 808) | (794, 808) | |||||||
| Components of comprehensive income |
|||||||||||
| Profit (loss for the period) | 2,838,069 | 2,838,069 | 16,701 | 2,821,368 | |||||||
| Effects of applying IAS 19 | (473, 676) | (473, 676) | (211) | (473, 465) | |||||||
| Translation reserve | 993,107 | 993,107 | 182,833 | 810,274 | |||||||
| Profit (loss) on cash flow hedge derivatives |
(12, 286) | (12, 286) | (12, 286) | ||||||||
| Profit (loss) on AFS classified financial assets |
(44,520) | (44,520) | (44,520) | ||||||||
| Total income (loss) for the year Overall |
3,300,694 | 199,323 | 3,101,371 | ||||||||
| Balance at 31/12/2016 | 26,979,658 (1,824,759) | 18,081,738 2,907,138 3,931,382 20,579,266 | 2,246,057 | 2,838,069 | 75,738,549 | 994,361 | 74,744,189 | ||||
| Reclassification previous year's | |||||||||||
| profit to previous year's profit | 2,838,069 | (2,838,069) | |||||||||
| Change in consolidation scope | (16, 367) | (16, 367) | (14, 572) | (1,795) | |||||||
| Components of comprehensive income |
|||||||||||
| Profit (loss for the period) | 931,732 | 931,732 | 37,253 | 894,479 | |||||||
| Translation reserve | (32, 464) | (32, 464) | (32, 464) | ||||||||
| Profit (loss) on cash flow hedge derivatives |
1,111 | 1,111 | 1,111 | ||||||||
| Total income (loss) for the year Overall |
900,379 | 37,253 | 863,126 | ||||||||
| Balance at 31/03/2017 | 26,979,658 (1,824,759) | 18,081,738 2,907,138 3,931,382 20,547,914 | 5,067,759 | 931,732 | 76,622,563 | 1,017,042 | 75,605,520 |
| Amount in Euro | ||
|---|---|---|
| 31.03.2017 31.03.2016 | ||
| Operating activities: | ||
| Profit (loss) | 931,732 | (273, 518) |
| Amortisation, depreciation and provisions | 1,239,587 | 1,000,930 |
| Provision for Severance Pay Fund | 1,148,421 | 990,300 |
| Advances/Payments Severance Pay | (1, 226, 350) | (1, 137, 385) |
| Cash flow arising from operating activities | 2,093,390 | 580,327 |
| Increase/Decrease in net working capital: | ||
| Variation in stock and payments on account | (2,401,998) | (725, 392) |
| Variation in receivables to customers | (6,799,469) | (1, 175, 869) |
| Variation in other accounts receivable | 33,492 | (1, 177, 751) |
| Variation in payables to suppliers | (2,736) | 593,576 |
| Variation in tax and social security liabilities | (2,688,599) | (4,036,013) |
| Variation in other accounts payable | 4,773,101 | 5,550,191 |
| Cash flow arising (used) from current assets and liabilities | (7,086,208) | (971, 258) |
| Cash flow arising (used) from current activities | (4,992,818) | (390, 931) |
| Investment activities: | ||
| Variation in tangible assets | 19,887 | (187, 966) |
| Variation in intangible assets | (655, 129) | (339, 252) |
| Variation in financial assets | (83, 476) | (7,994) |
| Purchase of minority interests | (1, 394) | |
| Cash flow arising (used) from investment activities | (720, 112) | (535, 212) |
| Financial activities: | ||
| Changes in financial assets not held as fixed assets | (449, 114) | (1,797) |
| Capital increase | (280, 623) | |
| Dividend paid | (54, 734) | |
| Variation shareholdres' equity | 8,409 | 167,904 |
| Cash flow arising (used) from financial activities | (495, 439) | (114, 516) |
| Increase (decrease) in cash | (6, 208, 368) | (1,040,659) |
| Banks / funds / securities and other financial assets at the beginning of the year |
17,852,802 | 8,565,365 |
| Banks / cash and other financial liabilities at the beginning of the year | (56, 188, 359) | (46,631,913) |
| Banks / funds / securities and other financial assets at end of period | 10,146,136 | 7,222,419 |
| Banks / cash and other financial liabilities at end of period | (54,690,061) | (46,329,626) |
| Increase (decrease) in liquidity | (6, 208, 368) | (1,040,659) |
The quarterly report as at 31 March 2017 of the Exprivia Group was prepared in accordance with International Financial Reporting Standards approved by the European Commission (hereafter IAS/IFRS individually or IFRS as a whole).
The consolidated financial statements as at 31 March 2017 include the equity, economic and financial situations of the Holding Company Exprivia S.p.A. and its subsidiaries and is the same as at 31 December 2016.
The table below shows the companies subject to consolidation; note that the investments shown below are all controlled directly by the Holding Company Exprivia apart from the companies ProSap SA de CV, ProSap Centroamerica SA, ProSap Perù Sac, Sucursal Ecuador de Exprivia SLU, Advances Computer Systems D - Gmbh, Exprivia It Solutions (Shanghai) Co Ltd, which are controlled indirectly:
| Company | Area |
|---|---|
| Advanced Computer Systems Srl | Defence & Aerospace |
| Advanced Computer Systems D - Gmbh | Defence & Aerospace |
| Consorzio Exprivia S.c.ar.l. | Other |
| Exprivia Asia Ltd | International Business |
| Exprivia IT Solutions (Shanghai) Co Ltd | International Business |
| Exprivia Projects Srl | Utilities |
| Exprivia do Brasil Serviços de Informatica Ltda | International Business |
| Exprivia SLU | International Business |
| Exprivia Process Outsoursing Srl | Utilities |
| Exprivia Healthcare IT Srl | Healthcare/Public Sector |
| Exprivia Telco & Media Srl | Telco & Media |
| ProSap SA de CV (Messico) | International Business |
| ProSAP Perù SAC | International Business |
| ProSAP Centroamerica S.A (Guatemala) | International Business |
| Sucursal Ecuador de Exprivia SLU | International Business |
| Exprivia Enterprise Consulting Srl | Oil & Gas/Industry/Utilities |
| Exprivia Digital Financial Solutions Srl | Banking & Finance |
| Spegea Scarl | Other |
The main data on the aforementioned subsidiaries consolidated using the line-by-line method are provided below.
| Company | H.O. | Company capital |
Results for period |
Net worth Total revenues Total Assets | % of holding | ||
|---|---|---|---|---|---|---|---|
| Advanced Computer Systems Srl | Roma | 2,801,307 | (105, 669) | 2,694,959 | 2,196,804 | 22,308,099 | 100.00% |
| Advanced Computer Systems D- Gmbh | Offenbach (Germania) | 25,000 | 43,091 | 97,280 | 181,878 | 168,140 | 100.00% |
| Consorzio Exprivia S.c.a.r.l | Milano | 20,000 | (947) | 19,699 | 22,621 | 100.00% | |
| Exprivia ASIA Ltd | Hong Kong | 58,420 | (33, 772) | 23,410 | 371,128 | 100.00% | |
| Exprivia It Solutions (Shanghai) Ltd | Shanghai (Cina) | 135,792 | (23, 145) | (190, 297) | 249,778 | 638,534 | 100.00% |
| Exprivia Enterprise Consulting Srl | Milano | 1,500,000 | 17,111 | 197,918 | 1,674,986 | 5,943,803 | 100.00% |
| Exprivia Healthcare IT Srl | Trento | 1,982,190 | 113,018 | 10,884,049 | 5,355,812 | 26,565,938 | 100.00% |
| Exprivia Process Outsoursing Srl | Palermo | 100,000 | (19, 441) | 78,031 | 1,540,943 | 1,331,463 | 100.00% |
| Exprivia Do Brasil Servicos Ltda | Rio de Janeiro (Brasile) | 1,742,800 | 90,893 | 1,956,756 | 386,951 | 2,286,394 | 52.30% |
| Exprivia Projects Srl | Roma | 242,000 | 112,795 | 402,596 | 1,580,880 | 2,070,790 | 100.00% |
| Exprivia Telco & Media Srl | Milano | 1,200,000 | (135, 598) | 1,064,401 | 5,194,025 | 15,050,772 | 100.00% |
| Succursal Ecuador de Exprivia SLU | Quito (Ecuador) | 9,354 | (1, 268) | (2,321) | 2,539 | 100.00% | |
| Exprivia SLU | Madrid (Spagna) | 197,904 | (102, 890) | 856,543 | 492,375 | 8,896,685 | 100.00% |
| ProSap Centroamerica SA | Città del Guatemala (Guatemala) | 637 | (274) | 267,098 | 228,528 | 1,326,075 | 100.00% |
| ProSap Sa de CV | Città del Messico (Messico) | 2,498 | 43,660 | (826, 451) | 785,050 | 4,916,097 | 100.00% |
| ProSap Perà SAC | Lima (Perù) | 203,081 | (329) | 17,674 | 34,984 | 100.00% | |
| Exprivia Digital Financial Solution Srl | Milano | 1,586,919 | 437,712 | 10,717,584 | 5,923,383 | 22,993,452 | 100.00% |
| Spegea Sc a rl | Bari | 125,000 | (15, 256) | 209,174 | 298,295 | 1,194,671 | 60.00% |
Details are provided below on the items in the Balance Sheet, drawn up in accordance with international accounting standards (IAS/IFRS).
All the figures reported in the tables below are in Euro.
"Share capital", fully paid up, amounted to Euro 25,154,899 and is the same as at 31 December 2016 and is represented by 51,883,958 ordinary shares at a nominal value of Euro 0.52 each for a total of Euro 26,979,658, net of 3,509,153 own shares held as at 31 March 2017 for a value of Euro 1,824,760.
As at 31 March 2017 the "share premium reserve" amounted to Euro 18,081,738 and is the same as at 31 December 2016.
As at 31 March 2017 the "revaluation reserve" amounted to Euro 2,907,138 and is the same as at 31 December 2016.
As at 31 March 2017 the "legal reserve" amounted to Euro 3,931,382 and is the same as at 31 December 2016.
The balance of the item "other reserves" amounted, at 31 March 2017, to Euro 20,547,914 as at 31.12.16 compared to Euro 20,579,266 at 31 December 2016 and pertains to:
Profit (loss) from previous periods as at 31 March 2017 stood at Euro 5,067,759 compared to Euro 2,246,057 as at 31 December 2016. The change was attributable primarily to the allocation of the Group profit for 2016.
Details are provided below on the items in the Income Statement, drawn up in accordance with international accounting standards (IAS/IFRS).
All the figures reported in the tables below are in euro, unless expressly indicated.
Revenue from sales and services in the first quarter of 2017 amounted to Euro 35,872,234 compared to Euro 31,654,400 in the same period of 2016.
The table below shows the details of revenues, including changes in inventories of raw materials and finished products (Euro 17,362 in the first quarter of 2017 compared to Euro -45,010 in the first quarter of 2016), broken down by business segment relating to the first quarter of 2017 and compared with the figures for the same period of the previous year (figures in thousands of Euro).
| Business Areas | 31/03/2017 | 31/03/2016 | Variation | Variation% |
|---|---|---|---|---|
| Banking & Finance | 5,803 | 5,624 | 178 | 3.2% |
| Energia e Utilities | 7,421 | 4,518 | 2,903 | 64.3% |
| Industry | 2,961 | 3,178 | (217) | $-6.8%$ |
| Oil e Gas | 3,631 | 3,136 | 495 | 15.8% |
| Telco & Media | 4,855 | 5,047 | (192) | $-3.8%$ |
| Healthcare | 5,199 | 5,508 | (309) | $-5.6%$ |
| Aerospace & Defence | 4,122 | 2,406 | 1,716 | 71.3% |
| International Business | 1,666 | 1,972 | (306) | $-15.5%$ |
| Other | 232 | 220 | 12 | 5.5% |
| Total | 35,890 | 31,609 | 4,281 | 13.5% |
Details of the net revenues relating at 31 March 2017 compared with the figures for the same period of the previous year, broken down by business segment (€/1000).
| Exprivia Group (value in k Euro) | 31/03/2017 | 31/03/2016 | Variation | Variation% |
|---|---|---|---|---|
| Projects and Services | 30,531 | 27,389 | 3,142 | 11.5% |
| Maintenance | 4,109 | 3,089 | 1,020 | 33.0% |
| HW/ SW third parties | 833 | 712 | 120 | 17.0% |
| Own licences | 183 | 199 | (16) | $-8.0%$ |
| Other | 234 | 220 | 14 | 6.4% |
| Total | 35,890 | 31,609 | 4.281 | 13.5% |
Details of revenues relating to 31 March 2017 are shown below, for the same period of the previous year, broken down by private and public sector (in K €).
| Exprivia Group (value in k Euro) | 31/03/2017 | Effect % | 31/03/2016 | Effect % | Variations % |
|---|---|---|---|---|---|
| PRIVATE | 30,272 | 84.3% | 24.473 | 77.4% | 23.7% |
| PUBLIC | 5,618 | 15.7% | 7,136 | 22.6% | $-21.3%$ |
| Total | 35,890 | 31,609 | 13.5% |
Details of revenues relating to 31 March 2017 are shown below, compared with the figures the same period of the previous year, broken down by geographical area (in K €).
| Exprivia Group (value in k Euro) | 31/03/2017 | Effect % | 31/03/2016 | Effect % | Variations % |
|---|---|---|---|---|---|
| ITALY | 31,782 | 88.6% | 29,083 | 92.0% | 9.3% |
| FOREIGN | 4,109 | 11.4% | 2.526 | 8.0% | 62.6% |
| Total | 35,890 | 31,609 | 13.5% |
In the first quarter of 2017 "other revenue and income" amounted to Euro 135,188 compared to Euro 174,724 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Discounts and rebates from suppliers | ۰ | 27,779 | (27, 779) |
| Rental income | 1,586 | 1,580 | 6 |
| Travel expenses to be charged to clients | 0 | 22,803 | (22, 803) |
| Other revenue | 25,194 | 65,424 | (40, 229) |
| Pay in lieu of notice | 0 | 20,345 | (20, 345) |
| Income from assignment of vehicles to staff | 37,311 | 36,786 | 525 |
| Capital gains | 71,097 | 8 | 71,089 |
| TOTAL | 135,188 | 174,724 | (39, 536) |
It should be noted that the item "Capital gains" included the sale of the property owned by ProSap SA de CV (Mexico) for Euro 71,097.
In the first quarter of 2017, "grants for operating expenses" amounted to Euro 135,632 compared to Euro 441,901 in the same period in 2016 and refer to grants and tax breaks pertaining to the period or authorised in the period for funded research and development projects. The reduction is attributable to the conclusion, during the last financial year, of certain funded research projects.
In the first quarter of 2017, "costs for capitalised internal projects" amounted to Euro 620,627 compared with Euro 316,844 in the same period in 2016 and mainly referred to expenses incurred in the quarter to develop products for the Banking, Healthcare and Aerospace segments. The increase is due to the contribution of the subsidiary ACS Srl, consolidated from the second half of 2016.
In the third quarter of 2017, the balance of the item "change in inventories of raw materials and finished products" amounted to Euro 17,362 compared to the decrease of Euro 45,010 in the same period of the previous year and referred to changes in finished products in the healthcare segment.
In the first quarter of 2017, the item "raw materials, consumables and goods" amounted to Euro 2,644,336 compared to Euro 2,500,453 in the same period of the previous year. The table below provides details on the items.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Purchase of HW-SW products | 2,572,161 | 2,399,575 | 172,586 |
| Stationery and consumables | 21,829 | 28,769 | (6,941) |
| Fuel and oil | 28,610 | 41,505 | (12, 895) |
| Other costs | 21,736 | 29,333 | (7, 597) |
| Warranty services on our customers activities | $\overline{\phantom{a}}$ | 1,270 | (1,270) |
| TOTAL | 2,644,336 | 2,500,453 | 143,883 |
In the first quarter of 2017, the item "staff costs" amounted to Euro 24,940,435 compared to Euro 22,258,138 in the same period of 2016. The table below provides details on the item:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Salaries and wages | 18,412,386 | 16,366,516 | 2,045,870 |
| Social charges | 4,872,778 | 4,311,818 | 560,960 |
| Severance Pay | 1,148,421 | 990,300 | 158,121 |
| Other staff costs | 506,851 | 589,504 | (82, 653) |
| TOTAL | 24,940,435 | 22,258,138 | 2,682,297 |
The number of group employees at 31 March 2017 came to 2,380 (of which 2,368 employees and 12 temporary workers) while the group employed 2,088 staff at 31 March 2016, of which 2070 employees and 18 temporary workers.
In the first quarter of 2017, the consolidated balance of the item "costs for services" amounted to Euro 4,940,998 compared to Euro 4,726,199 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Technical and commercial consultancy | 2,380,300 | 2,339,284 | 41,016 |
| Administrative/company/legal consultancy | 377,655 | 457,627 | (79,972) |
| Consultancy to subsidiary companies | 83,830 | (83, 830) | |
| Data processing service | 140,531 | 112,837 | 27,694 |
| Auditors' fees | 38,888 | 39,754 | (866) |
| Travel and transfer expenses | 596,324 | 465,168 | 131,156 |
| Other staff costs | 36,847 | 35,941 | 906 |
| Utilities | 316,983 | 268,923 | 48,060 |
| Advertising and agency expenses | 124,578 | 100,324 | 24,255 |
| Bank charges | 106,371 | 127,584 | (21, 213) |
| HW and SW maintenance | 70,912 | 87,681 | (16, 769) |
| Insurance | 218,107 | 126,941 | 91,167 |
| Costs of temporary staff | 80,091 | 41,490 | 38,600 |
| Other costs | 394,223 | 341,823 | 52,400 |
| Mail services | 59,186 | 96,991 | (37, 805) |
| TOTAL | 4,940,998 | 4,726,199 | 214,799 |
In the first quarter of 2017, the consolidated balance of the item "costs for leased assets" amounted to Euro 1,036,201 compared to Euro 1,061,824 in the same period of the previous year. The table below provides details on the items:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Rental expenses | 551,692 | 433,740 | 117,952 |
| Car rental/leasing | 243,682 | 257,285 | (13,603) |
| Rental of other assets | 189,231 | 346,550 | (157, 318) |
| Royalties | 39,086 | 24,249 | 14,837 |
| Other costs | 12,510 | $\sim$ | 12,510 |
| TOTAL | 1,036,201 | 1,061,824 | (25, 623) |
The most significant change is attributable to the item "rental expenses" and refers to the rent paid by the company Exprivia Process Outsourcing Srl (which joined the scope of consolidation from November 2016).
The change in the item "rental of other assets" is primarily attributable to lower costs incurred by the Parent Company Exprivia for the conclusion of contracts in respect of customers in the Energy & Utilities sector.
In the first quarter of 2017, the item "sundry operating expenses" amounted to Euro 107,034 compared to Euro 172,254 in the same period of the previous financial year. The table below provides details on the items:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Annual subscriptions | 29,236 | 23,700 | 5,535 |
| Books and magazines | 1,036 | 1,808 | (772) |
| Taxes | 58,615 | 48,295 | 10,320 |
| Stamp duty | 28,807 | 17,450 | 11,357 |
| Penalties and fines | (57, 142) | 523 | (57, 665) |
| Contingency liabilities | ٠ | 2,318 | (2,318) |
| Sundry expenses | 23,384 | 77,804 | (54, 420) |
| Capital losses on disposals | 16,027 | 356 | 15,671 |
| TOTAL | 107,034 | 172,254 | (65, 220) |
The change in the item "penalties and fines" is mainly attributable to the company ACS following the recovery of sanctions on scrapped tax demands.
The change in the item "sundry expenses" is mainly attributable to the company ProSap SA de CV (Mexico) which incurred lower non-deductible costs compared to the first quarter of 2016.
In the first quarter of 2017, the consolidated balance of the item "provisions" amounted to Euro 79,205 compared with Euro 98,833 in the same period of 2016.
The table below shows movements in the first quarter of 2017 compared with those in the first quarter of 2016.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Provision for legal disputes with employees | 79.505 | 98,833 | (19, 328) |
| Other provisions | (300) | (300) | |
| TOTAL | 79,205 | 98,833 | (19, 628) |
In the first quarter of 2017, the consolidated balance of the item "amortisation, depreciations and writedowns" amounted to Euro 1,160,382 compared with Euro 1,061,492 in the same period of 2016.
In the first quarter of 2016, "amortisation and depreciation" amounted to Euro 1,057,298 compared to Euro 1,000,930 and refers, in the amount of Euro 704,502, to the amortisation of intangible assets and, in the amount of Euro 352,796, to the depreciation of tangible assets.
In the first quarter of 2017, the balance of "write-downs" amounted to Euro 103,084 compared to Euro 60,562 in the first quarter of 2016 and refers to the write-down of receivables considered unlikely to be collected.
In the first quarter of 2017, the balance of the item "financial income (expense) and other investments" showed expenses of Euro 320,958 compared with expenses of Euro 625,435 in the first quarter of 2016. The table below provides details on the items.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Proceeds from shareholdings from parents | 23,299 | 6,918 | 16,381 |
| Other income other than the above | 50,849 | 38,519 | 12,330 |
| Interest and other financial charges | (513,040) | (631, 626) | 118,586 |
| From parent charges | (94, 170) | (94, 170) | |
| Profit and loss on currency exchange | 212.104 | (39.246) | 251,350 |
| TOTAL | (320, 958) | (625, 435) | 304,477 |
In the first quarter of 2017, the balance of the item "income from parent companies" amounted to Euro 23,299 compared with Euro 6,918 in the first quarter of 2016 and referred to interest charged to the parent company Abaco Innovazione S.p.A. for an outstanding loan with Exprivia SpA.
In the first quarter of 2017, the item "other financial income" amounted to Euro 50,849 compared to Euro 38,519 in the same period of 2016. The table below provides details on the item.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Bank interest receivable | 1,259 | 6,505 | (5, 246) |
| Revenues from financial derivatives | 46,865 | 21,977 | 24,888 |
| Other interest income | 15 | 9.907 | (9,893) |
| Rounding up of assets | A | 130 | (129) |
| TOTAL | 50,849 | 38,519 | 12,329 |
In the first quarter of 2017, the balance of the item "interest and other financial charges" amounted to Euro 513,040 compared to Euro 631,626 in the same period of the previous year. The table below provides details on the items.
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| Bank interest payable | 104,643 | 225,896 | (121, 253) |
| Interest on loans and mortgages | 269,759 | 273,289 | (3,530) |
| Sundry interest | 128,651 | 120,902 | 7,749 |
| Charges on financial products and sundry items | 9,706 | 11.085 | (1, 379) |
| Rounding up/down | (128) | $\sim$ | (128) |
| TOTAL | 513,040 | 631,626 | (118, 586) |
In the first quarter of 2017, the balance of the item "charges from parent companies" amounted to Euro 94,170 and refers to the portion applicable to the period of charges recognised to the parent company Abaco Innovazione SpA for guarantees issued by the latter.
In the first quarter of 2017, "profit on currency exchange" amounted to Euro 212,104 compared to currency exchange losses of Euro 39,246 in the first quarter of 2016 and mainly refers to fluctuations in the exchange rate as a result of commercial transactions carried out in currencies other than the national currency of foreign Exprivia Group companies.
In the first quarter of 2017, "taxes" amounted to Euro 619,761 compared to Euro 311,749 in the first quarter of 2016; the table below provides details on the changes compared to the previous period:
| Description | 31/03/2017 | 31/03/2016 | Variation |
|---|---|---|---|
| IRES | 368,978 | 190,646 | 178,332 |
| IRAP | 182,727 | 126,595 | 56,132 |
| Foreing tax | 54,976 | 54,976 | |
| Taxes from prior years | 8,890 | 8,890 | ۰ |
| Defered tax | ۰ | (7, 170) | 7,170 |
| Deferred tax assets | 4,190 | (7,212) | 11,402 |
| TOTAL | 619,761 | 311,749 | 308,012 |
The Holding Company Exprivia SpA acts as the consolidating company and determines a single taxable result for the companies under National Tax Consolidation in accordance with art. 117 of T.U.I.R.
Each company under Tax Consolidation contributes taxable income or tax loss to Exprivia SpA as a payable/receivable for the consolidating company, depending on their IRES.
The Income Statement for the first quarter of 2017 closed with a consolidated profit (after taxes) of Euro 931,732 compared to a loss of Euro 273,518 in the first quarter of 2016.
Information on figures used to calculate earnings per share and diluted earnings is provided below in accordance with IAS 33.
Earnings (loss) per share is calculated by dividing net profit for the period as reported in the consolidated financial statements drawn up in accordance with IAS/IFRS, attributable to ordinary shareholders of the Holding Company, excluding the treasury shares, by the average number of ordinary shares in circulation during the period.
For the purpose of calculating basic earnings per share, the economic result for the period minus the amount attributable to minority interests was used in the numerator. In addition, there are no privileged dividends, conversion of privileged shares and other similar effects which could adjust the economic result attributable to holders of ordinary capital instruments.
At 31 March 2017 the basic and diluted earnings per share amounted to Euro 0.0192.
The consolidated net financial position as at 31 March 2017 was Euro -42 million, a decrease of Euro 6.2 million compared to 31 December 2016 when it was Euro -35.8 million.
The Group net financial indebtedness increased due to absorption of cash derived from operating activities, in the amount of Euro 5 million, and from cash flow for investment activities, in the amount of Euro 1.2 million.
The undersigned, Valerio Stea, financial reporting officer responsible for preparing the corporate accounts, in accordance with Art. 154-bis(2) of Italian Legislative Decree no. 58 of 24 February 1998, introduced by Italian Law no. 262 of 28 December 2005, hereby states that the information and data on the economic, capital and financial standing contained in this Interim Report on Operations as at 31 March 2017 referring to the Consolidated Financial Statements correspond to the accounting documents, books and records.
Molfetta, 12 May 2017.
Financial Reporting Officer Responsible for Preparing Corporate Accounting Documents Valerio Stea
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