Landi Renzo

Earnings Release • Sep 27, 2016

H1 2016 FINANCIAL RESULTS

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SNAPSHOT

H1 2016 PROFIT&LOSS HIGHLIGHTS

(Euro million)
	H1 2016	%	H1 2015	%	Change	%
Revenues (goods and services)	89.3		98.1		-8.8	-9.0%
Ebitda Adjusted	1.9	2.1%	0.2	0.2%	1.7	100.0%
Extraordinary Expenses	3.5		0.0
Ebitda	-1.6	-1.7%	0.2	0.2%	-1.7	-100.0%
Amortization, depreciation and impairment losses	8.0	9.0%	7.7	7.9%	0.3	4.2%
Ebit	-9.6	-10.7%	-7.6	-7.7%	-2.0	-26.9%
Net Profit (Loss) of the Group	-12.8	-14.3%	-7.2	-7.4%	-5.5	-76.4%

REVENUES BREAKDOWN

							REVENUES BREAKDOWN
(Millions of Euro)
Geographical distribution of revenues	H1 2016	%	H1 2015	%	Change	%
Italy	19.4	21.7%	19.9	20.3%	-0.5	-2.6%
Europe (ex Italy)	40.7	45.6%	44.4	45.2%	-3.6	-8.2%
America	14.3	16.0%	17.4	17.7%	-3.1	-17.8%
Asia and rest of the world	14.9	16.6%	16.4	16.7%	-1.6	-9.6%
Total Revenues	89.3	100.0%	98.1	100.0%	-8.8	-9.0%
(Million of Euro)

(Million of Euro)
Distribution of revenues per area of activity	H1 2016	%	H1 2015	%	Change	%
Gas sector - systems for cars	71.8	80.4%	79.2	80.7%	-7.4	-9.3%
Gas sector - distribution systems	8.5	9.5%	11.2	11.4%		-2.7 -23.9%
Total revenues - GAS sector	80.3	89.9%	90.4	92.1%		-10.0 -11.1%
Other (Alarm systems, Audio, Aquatronics (1), Robotics, Oil and Gas and other)	9.0	10.1%	7.8	7.9%	1.2	15.6%
Total Revenues		89.3 100.0%		98.1 100.0%	-8.8	-9.0%
new criterion for classification of revenues by	segment was	followed	starting from	the first	half of 2014:	this is	in line with the
logic of the management approach. The current	composition shows	the	LPG and CNG	lines	in the segment		"systems for cars"
and includes revenues from sales of compressors for	fueling stations,	made	by the	company	Safe SpA in	the sector	"distribution
system". The segment "Other - (Alarms, Sound, Robotics,	Oil&Gas and	other),"	compared to	previous	results, does	not include	the sale of
compressors for fuelling stations, by virtue of the above	mentioned	reclassification.						(18Sound brand).
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								© LANDI RENZO SPA 2015.

system".

GEOGRAPHIC BREAKDOWN Italy – turnover is stable even if the AM conversions segment business decreases in this area. Europe – revenues decrease mainly as some Car Makers had delay in the introduction of new E VI lpg/cng engines. America – negative trend in some markets of South America partially offset

by good trend of Brasilian market. Asia and Rest of the world – even if there are some good performances of Indian and Algerian market, the decrease refers to some Middle East markets. SECTOR BREAKDOWN Systems for cars – the decrease is due to the OEM segment. Distribution systems – slowdown of revenues particularly in South East Asia. Other – the increase in this segment is mainly due to Loudspeakers sales (18Sound brand).

WORKING CAPITAL

NET DEBT

LANDI RENZO COMPANY PROFILE

BOARD OF DIRECTORS

Claudio Carnevale - Executive Director Angelo Iori – Director Silvia Landi - Director Anton Karl - Director Sara Fornasiero - Indip. Director Ivano Accorsi – Indip. Director

TOP MANAGERS INVESTOR RELATIONS

Investor Relations Contacts: Pierpaolo Marziali Tel: +39 0522 9433 E-mail: ir@landi.it www.landi.it

N. of shares outstanding: 112.500.000

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET
(thousands of Euro)
ASSETS	30/06/2016	31/12/2015
Non-current assets
Property, plant and equipment	32,889	35,364
Development expenditure	8,319	8,404
Goodwill	30,094	30,094
Other intangible assets with finite useful lives	21,594	22,696
Equity investments consolidated using the equity method	45	109
Other non-current financial assets	622	574
Deferred tax assets	12,896	13,779
Total non-current assets	106,459	111,020
Current assets
Trade receivables	33,810	31,340
Trade receivables - related parties	2,388	2,424
Inventories	60,878	57,528
Contract works in progress	3,182	2,904
Other receivables and current assets	12,126	16,347
Cash and cash equivalents	18,749	38,264
Total current assets	131,133	148,807
TOTAL ASSETS	237,592	259,827

CONSOLIDATED BALANCE SHEET

		CONSOLIDATED BALANCE SHEET
(thousands of Euro)
EQUITY AND LIABILITIES	30/06/2016	31/12/2015
Group shareholders' equity
Share capital	11,250	11,250
Other reserves	59,374	95,428
Profit (loss) of the period	-12,541	-35,288
Total equity attributable to the shareholders of the parent	58,083	71,390
Minority interests	205	425
TOTAL EQUITY	58,288	71,815
Non-current liabilities
Non-current bank loans	17,200	11,935
Other non-current financial liabilities	26,305	1,468
Provisions for risks and charges	9,731	8,059
Defined benefit plans	3,333	3,313
Deferred tax liabilities	6,512	6,691
Total non-current liabilities	63,081	31,466
Current liabilities
Bank overdrafts and short-term loans	46,913	50,797
Other current financial liabilities	6,600	33,523
Trade payables	49,367	56,260
Trade payables - related parties	3,086	2,091
Tax liabilities	1,652	4,990
Other current liabilities	8,605	8,885
Total current liabilities	116,223	156,546
TOTAL EQUITY AND LIABILITIES	237,592	259,827

CONSOLIDATED PROFIT&LOSS

(thousands of Euro)
INCOME STATEMENT	30/06/2016	30/06/2015
Revenues (goods and services)	89,219	97,990
Revenues (goods and services) - related parties	71	135
Other revenue and income	559	864
Cost of raw materials, consumables and goods and change in inventories	-42,240	-46,701
Costs for services and use of third party assets	-24,286	-27,098
of which non-recurring	-1,050
Costs for services and use of third party assets - related parties	-1,614	-1,561
Personnel expenses	-18,966	-22,206
Accruals, impairment losses and other operating expenses	-4,297	-1,263
of which non-recurring	-2,400	0
Gross Operating Profit	-1,554	160
Amortization, depreciation and impairment losses	-8,037	-7,716
Net Operating Profit Financial income	-9,591 65	-7,556 224
Financial expenses	-2,677	-2,101
Gains (losses) on exchange rate	660	597
Gains (losses) on equity investments consolidated using the equity method	-64	-100
Profit (Loss) before tax	-11,607	-8,936
Current and deferred taxes	-1,159	1,703
Profit (loss) of the period for the Group and minority interests, including:	-12,766	-7,233
Minority interests	-225	-64
Profit (Loss) of the period for the Group	-12,541	-7,169
Basic earnings (loss) per share (calculated on 112,500,000 shares)	-0.1115	-0.0637
Diluted earnings (loss) per share	-0.1115	-0.0637

DISCLAIMER

This presentation has been prepared by Landi Renzo S.p.A. for information purposes only and for use in presentations of the Group's results and strategies. For further details on the Landi Renzo Group, reference should be made to publicly

available information, including the Quarterly Reports and the Annual Reports.

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of future performance.

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